Citigroup’s Earnings Rose 30% in First Quarter

Citigroup on Monday reported first quarter profit of $3.8 billion or $1.23 a share, exceeding analysts’ estimates, as the bank continues to slash costs and unload troubled assets. The company also reported higher revenue of $20.5 billion in the first quarter, buoyed by continued gain’s in Citigroup’s investment banking business and strong loan demand.

In the lead up to the bank’s quarterly earnings, analysts estimated the bank would post earnings of $1.18 a share on revenue of $20.17 billion, according to a survey by Thomson Reuters. Adjusted for certain charges, the company reported a profit of $4 billion on revenue of $20.8 billion in the first quarter.

“Achieving consistent, high-quality earnings is one of my top priorities and these results are encouraging,” Michael Corbat, the bank’s chief executive said in a statement. “During the quarter, we benefitted from seasonally strong results in our markets businesses, sustained momentum in investment banking, continued year-over-year growth in loans and deposits in Citicorp, and a more favorable credit environment.”

The results follow a particularly disappointing fourth quarter for Citi when profits were dampened by mortgage woes stemming from the financial crisis. Last quarter, for example, Citigroup shouldered $1.3 billion in legal costs and related expenses.

Citigroup has been aggressively whittling down a morass of soured loans and cutting less-profitable business lines in an ongoing effort to reduce costs. In December, Citigroup said it would cut 11,000 jobs worldwide.

Like its rivals, Citigroup faces increasing pressure to cut costs and bolster return to shareholders. Mr. Corbat addressed the continued difficulty within the banking industry as the economy limps toward a recovery. In a statement Monday, Mr. Corbat said that “the environment remains challenging and we are sure to be tested as we go through the year.”

Capitalizing on its vast international footprint, Citigroup has been focusing on developing countries that offer more opportunities for growth than the United States.

Deposits across the bank grew by 3 percent to $934 billion. Total loans also ticked upward, growing 5 percent to $539 billion.