Revenues were $18.6bn for the period April to June, down 10% on the same period last year. But in an indication that the US credit market is improving, the bank was able to reduce provision for bad debts from $27.6bn to $34.4bn. And earnings per share were $0.95, above analysts' expectations.
Our core businesses performed well in a difficult environment," said chief executive Vikram Pandit.
Repayments
Net income was reduced considerably thanks to a net loss of $424m on the sale of its 10.1% stake in Turkish bank, Akbank.Retail banking revenues grew by 32% to $1.6bn as a result of higher mortgage revenues.
Citigroup's net credit losses fell $625m to $1.5bn, a 29% drop, as more of its customers were able to pay back money they had borrowed.
The bank also reduced the amount it released to cover loan losses to $984m, a 50% reduction compared with the same period last year.
While global consumer banking revenues in North America grew 4% to $5.1bn, international revenues fell 4% to $4.6bn, reflecting currency fluctuations, the bank said.
In March, Citigroup failed a "stress test" designed by the Federal Reserve to assess how well banks could withstand a financial shock.
Since then Citigroup has been increasing its reserves. Now the bank says its Basel 1 Tier 1 capital ratio - assets held in reserve as a buffer against financial troubles - is 12.7%, compared with 4.9% in March.
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