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Citigroup's first-quarter profit surges

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(Globalpost/GlobalPost)

US banking giant Citigroup Monday reported a 30 percent increase in first-quarter net income from a year earlier due to higher revenues and lower net credit losses.

Citigroup posted net income of $3.8 billion on revenues of $20.5 billion in the first quarter of 2013, up from $2.9 billion on $19.4 billion in the year-ago quarter.

A key driver of the earnings increase was lower net credit losses, the ratio of current credit-related losses on a mortgage-backed security to the original value of the security, the bank said in a statement.

Citi reported a loss of $3 billion in this category compared with $4.0 billion in the year-ago period.

"During the quarter, we benefited 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," said Citigroup chief executive Michael Corbat.

"However, the environment remains challenging and we are sure to be tested as we go through the year."

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http://www.globalpost.com/dispatch/news/afp/130415/citigroups-first-quarter-profit-surges