Citigroup has reported net income for the three months ended June 30 of $1.14 billion and earnings per diluted share of $0.22.
Results at the world's biggest bank included a $4.95 billion after-tax charge for the WorldCom class action settlement and increased litigation reserves related to 2003 regulatory settlements.
Results also included a $756m after-tax gain on the sale of the company's 20% stake in the Samba Financial Group.
For the half year to the end of June net income was $6.4 billion. Excluding the litigation charge and Samba gain, earnings for the six months would have been $10.6 billion, an increase of 26%.
Charles Prince, chief executive officer of Citigroup said that underlying business dynamics were strong, with revenues increasing by 9%, despite sluggish capital markets in May and June.
He said: "Our international businesses continue to perform well with income in international cards and international retail banking increasing 49% and 50%, respectively." He added: "The credit environment is the best we have seen in years."
Prince said the group is continuing to invest in its businesses by through increasing its commitment to marketing and technology, as well as strategic acquisitions to build on its core franchises.
The group continued to achieve strong business volume growth, with 24% increase in mortgage origination volumes in North America retail banking and 21% deposit growth, as well as 21% growth in investment product sales in international retail banking.
