Citigroup posts earnings loss, Bank of America profits up
Live Punjab News Service
New York -- The US' two largest banks posted mixed third-quarter results Thursday, with Citigroup Inc reporting a loss in net income but a rise in its core business profits, while Bank of America Corp's profits soared 41 percent.
Citigroup - the world's largest financial services firm according to market value - said net income dropped 23 percent to $5.5 billion, after the sale of its insurance unit last year had raised 2005's third-quarter earnings to a record $7.1 billion.
Profits from continuing operations - which excludes gains from asset sales - increased six percent on a year earlier to $5.3 billion, while revenue at the New York-based bank was roughly even for the quarter at $21.4 billion.
Bank of America's third-quarter earnings rose to a record $5.42 billion, up from $3.84 billion a year earlier, helped by the sale of its Brazilian unit and the acquisition of MBNA Corp.
Revenue at the Charlotte, North Carolina-based bank increased 32 percent to $19 billion.