US banking giant Citigroup today posted a 37-per cent rise in quarterly net profits.
The increase is due to growth at its US consumer arm and a $1.06 billion gain on a partial spin-off of Travelers Property Casualty Corp.
Low interest rates bolstered lending profits margins at Citigroup's consumer arm, which includes mortgage and credit card operations. But Citigroup also took a $816 million pre-tax charge in the quarter after economic turmoil in Argentina left it with loan and currency losses.
The New York-based firm, which runs banking, brokerage and insurance operations in over 100 countries, earned $4.84 billion compared with $3.54 billion a year earlier.
At Citigroup's investment and corporate banking unit profits decreased 4 per cent to $987 million. Lower investment banking and trading-related revenues hurt these results.
Citigroup said currency losses in Argentina reduced its equity by $512 million in the quarter.