Citigroup, Earnings & Sales Reports | featured news

itigroup's strategy of slimming down and focusing on a few core businesses is paying off. The New York bank reported third quarter earnings rose 74 percent in the third quarter, to $3.8 billion, due to lower losses from loans and an accounting gain. Its international consumer lending business grew in Asia and Latin America. The bank also decided to keep its credit card partnership with retailers as that business improved.

Citigroup Inc, one of the big U.S. banks hit hardest by the financial crisis, posted a quarterly profit as gains from the sale of its Smith Barney brokerage into a joint venture more than offset losses from its primary banking businesses.

The bank’s reported income of $1.6 billion was helped by an accounting adjustment that allowed a one-time gain of $2.5 billion on its derivative positions.

The Dow soars more than 300 points after the banking company reports that it was profitable through the first two months of the year. Other financial stocks also gain. Good news from a bank -- finally -- is sending the stock market to its best gain this year.

Citigroup capped a devastating 2008 by announcing Friday that it would split into two entities and that it had posted an $8.29 billion loss for the fourth quarter.