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Citigroup makes bank

Janet Babin Jul 20, 2007

TEXT OF STORY

Lisa Napoli: The nation’s biggest bank is raking in the dough. This morning, Citigroup reported second quarter growth up 18 percent. A lot of that has to do with international growth, as Janet Babin reports from North Carolina Public Radio.


Janet Babin: Overall revenue for Citigroup grew 20 percent this past quarter to a record $26.63 billion. The results beat analysts’ expectations.

Some of the biggest gains for Citigroup came from so-called alternative investments, the company’s hedge fund and private equity business. Profits there soared 77 percent to more than $1 billion.

The company’s wealth management unit also did well — profits rose nearly 50 percent — and international revenue had a healthy showing too, surging a record 34 percent. Citigroup opened more than 100 new retail bank branches abroad.

One of the few dark spots was the company’s largest business: its consumer unit. It suffered a 15 percent profit dip. Most analysts blame deteriorated credit and failed mortgages for the fall. Credit costs rose $934 million.

I’m Janet Babin for Marketplace.

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