Citigroup reports 27% drop in quarterly profits

Citigroup’s quarterly profit plunged 27 per cent, dragged down by lower revenue as well as costs to shrink some businesses and cover bad loans to the energy industry.

The fourth largest US bank by assets said it could incur another $1 billion (€885 million) in credit costs this year if oil slipped below $35 per barrel.

Citigroup has reported the biggest drop in profit among big US banks that have released first-quarter results so far, but lower expenses helped it beat Wall Street's low expectations.

"We still feel like we have a very good book of energy loans that compares well versus competitors," chief financial officer John Gerspach said.

Citigroup’s net income fell to $3.5 billion, or $1.10 per share, in the quarter ended March 31st, beating the average analyst estimate of $1.03 per share. – (Reuters)