Citigroup turned a profit for the sixth straight quarter as losses from failed loans declined. Losses from bad loans fell 35% during the quarter to $5.4 billion, which allowed the bank to release $2 billion from its loan loss reserves and count it as income, the New York bank said. Net income rose 24% to $3.3 billion, or $1.09 cents per share: That compares to net income of $2.7 billion, or 90 cents per share, during the same quarter last year. Analysts surveyed by FactSet had predicted Citigroup would earn 96 cents per share.
More of the bank's credit card and mortgage loan customers also paid on time—consumer loans that were delinquent by 90 days or more totaled $9.9 billion, down 46% compared with the same period last year. Citigroup was one of the hardest-hit banks during the financial crisis of 2008. The bank received $45 billion in government aid, $25 billion of which was converted to stock.