On The Rise

Citi Doubles Its Profit

$4.4 billion is best in three years.

Citigroup is on a remarkable upswing—the banking giant announced it more than doubled its profit in the first quarter of 2010. Its trading revenue surpassed analysts’ estimates and with the value of subprime mortgage bonds increasing, Citi came out with a net income of $4.43 billion—this after a $7.58 billion loss in the fourth quarter of 2009. CEO Vikram Pandit, who is taking a $1 annual salary until the company finds itself profitable, said 2010 may show “earnings potential of the new Citi” after two straight annual losses with a final tab of $29 billion. Citigroup received $45 billion from the 2008 bailout and has since repaid $20 billion, converting the remaining $25 billion into Citigroup shares. “All of us at Citi recognize that we would not be where we are without the assistance of American taxpayers,” said Pandit.