Citigroup Accumulates Money As Fast As It Accumulates Scandals

Citigroup yesterday released first-quarter profits up 29 percent to a record high, on double-digit growth in consumer and investment banking and all other major product lines. Net income rose to $5.27 billion, from $4.1 billion a year earlier. Results included a gain of $180 million on the sale of part of Citigroup’s electronics funds services business. Revenue rose 16 per cent from a year earlier to $21.49 billion, while expenses rose 11 percent to $10.64 billion. Assets rose 16 percent to $1.32 trillion. Chief Executive Charles Prince, 54, who took over the CEO role from Chairman Sanford “Sandy” Weill on 1 October, said results “reflect a focus on increasing customer volumes while maintaining expense discipline and improving credit performance” as economies worldwide improve. Citigroup has focused mainly on expanding existing businesses rather than on what Prince calls “transformational” mergers, but has said repeatedly that it will consider retail and other acquisitions inside and outside the United States. Its largest U.S. rival, Bank of America, on Wednesday said first-quarter profit rose 11 percent to $2.68 billion, driven by consumer banking gains.