Citigroup shines with record profit

Citigroup, the world's largest financial services company, yesterday shook off the gloom that has beset investment banking, lifting third-quarter profits by 27 per cent to a record $4.69bn (£2.79bn).

The bank - which includes a large financial services arm, investment banking and corporate business - benefited from its diversity.

The global corporate and investment banking division generated income of $1.37bn for the three months ended 30 September. That was $326m more than in the year-earlier period and ahead by a more modest $28m on the preceding three months.

Expenses in the corporate and investment bank jumped 21 per cent compared with the same period last year but were lower than the second quarter.

The quarter was the last one under the leadership of Sandy Weill, who stepped down as chief executive of the group on 1 October. The 70-year-old legendary Wall Street deal maker remains chairman of the bank.

Charles Prince, 53, Mr Weill's long-time confidant and head of Citigroup's global corporate and investment bank, became chief executive on 1 October.

Despite speculation that Citigroup would seek acquisitions in the UK or on the Continent, the bank has made it clear it is still very keen to expand in its domestic market.

Last year it bought California's Golden State Bancorp and in 2001 bought European American Bank.