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Citigroup profits down 12 percent in Q2

  • Citigroup has reported a 12 percent drop in net income to $2.9 billion for the second quarter of 2012.

    The drop came on the back of a net loss of $424 million on the sale of its 10.1 percent stake in Turkish bank, Akbank.

    Revenues were $18.6 billion for the period April to June, down 10 percent compared to the same period last year.

    However, the banking giant was able to reduce provision for bad debts from $34.4 billion to $27.6 billion, a sign that the US credit market is improving.

    Earnings per share came in at $0.95, above analysts' expectations.

    Meanwhile, retail banking revenues increased by 32 percent to $1.6 billion courtesy of higher mortgage revenues.

    Citigroup's net credit losses fell $625 million to $1.5 billion as more of its customers were able to pay back money they had borrowed.