Citigroup & Bank of America exceed market expectations

| July 17, 2009 | 0 Comments
Citigroup & Bank of America exceed market expectations

Citigroup and Bank of America have surprised analysts by reporting better than expected second-quarter results.

Results from both banks have followed hot on the heels of strong results from fellow US Banking giants, JPMorgan Chase and Goldman Sachs.

Citigroup posted a $4.3 billion second quarter profit due to gains on its Smith Barney deal. However, the bank which has received $45 billion of taxpayers cash, said its primary banking businesses continue to suffer from growing credit losses.

Citigroup’s CEO, Vikram Pandit, pointed out that the bank has been undergoing a strategic process of rebuilding its core strength and returning to long-term, sustainable profitability and has stated that Citigroup has made considerable progress in this area.

Meanwhile, Bank of America said its earnings after payment of preferred dividends were $2.42 billion in the second quarter. While the figure was down from a year ago, it still exceeded forecasts.

Bank of America has been one of the best performers in the US but has been hit with a number of problems since its merger with Merrill Lynch, which was announced just days after the collapse of Lehman Brothers last September.

Bank of America’s Tier 1 Capital ratio is currently 11.93% - its strongest capital standing in recent times.

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