Citigroup operating profit up 3%

Citigroup said today that fourth-quarter operating profit rose 3 per cent as revenue grew in all main business lines.

Citigroup said today that fourth-quarter operating profit rose 3 per cent as revenue grew in all main business lines.

Earnings rose to $5.13 billion, or $1.03 per share, from $4.97 billion, or 98 cents.

Net income fell 26 per cent to $5.13 billion, or $1.03 per share, from $6.93 billion, or $1.37. Year-earlier results included a gain from the sale of Citigroup's asset-management unit.

Revenue rose 15 per cent to $23.83 billion, although expenses grew 23 per cent to $13.96 billion, in part from investment spending and acquisitions.

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Chief Executive Charles Prince has been under pressure from investors to curb spending and generate faster revenue growth, especially in long-struggling US consumer operations.

Profit excluding items rose less than the 48 per cent and 68 per cent that JPMorgan Chase & Co. and Merrill Lynch & Co. reported this week, respectively, and that

major Wall Street investment banks reported last month.

Citigroup shares closed last night at $54.39 on the New York Stock Exchange. They fell 27 cents in premarket electronic trading.