Citigroup profit surges in second quarter

US banking giant Citigroup on Friday posted a strong rise in second-quarter profit, as falling credit losses offset a drop in revenues. Net income increased to $3.3 billion in the April-June period, marking a 24 percent jump from $2.7 billion in the same period last year, and an 11 percent increase from the first quarter of 2011, the bank said. Earnings per share were $1.09, the New York-based bank said in a statement, beating analysts' consensus estimate of 97 cents. Revenues came in at $20.6 billion, topping analysts' forecasts of $19.9 billion. Net revenues were 7.0 percent lower than in the first quarter of 2010 but 5.0 percent higher than in the first quarter of this year. "We produced growth in both loans and deposits in Citicorp, reduced assets in Citi Holdings, continued to invest in our core businesses, and improved our financial strength," chief executive Vikram Pandit said in the statement. Citi Holdings was the company created to hold risky and distressed assets after the financial crisis, while Citicorp contains the banking giant's profitable core businesses. The upbeat report from Citigroup came one day after JPMorgan Chase reported a 13 percent increase in profits in the second quarter.