Citigroup posts earnings of $2.15bn

The US banking giant Citigroup posted net income of $2.15bn (£1.4bn) yesterday as the sector's third-quarter reporting season continued to beat expectations.

Citigroup – 12 per cent owned by the US government after being bailed out – said profits were helped by a sharp fall in bad debts, with provisions dropping to their lowest level since the second quarter of 2007.

Earnings from the Wall Street firm compared with losses of $3.2bn a year earlier and mark the third straight quarter of profits.

Citigroup said its total salary and benefits bill for the period stood at $6.12bn, up 2.6 per cent on the previous quarter, although it did not reveal its compensation ratio.