Top US banks led by Citigroup and Bank of America today posted higher quarterly profits as growth in mortgage lending and credit cards offset weak Wall Street businesses like investing and trading.
"We did have, I think, an incredible quarter in very difficult times," Citigroup chief executive Mr Sandy Weill told analysts on a conference call. Citigroup also is battling allegations its analysts issued overly bullish research reports to win investment banking business.
Citigroup posted a 23 per cent rise in income to $3.92 billion, or 76 cents a share, including one-time items.
Bank of America earned $2.24 billion, or $1.45 a share, up from $841 million, or 51 cents a share, a year ago.
Bank stocks - beaten up in recent weeks on concerns about unpaid corporate loans and investment losses - rallied sharply on Wall Street today.
Shares of Citigroup, which fell more than 41 per cent in the first three quarters this year, rose 10.8 per cent, or $3.29, to $33.60 on the New York Stock Exchange. Bank of America rose 7.3 per cent, or $4.41, to $65.12.