Mortgage troubles and loan write-downs slowed Citigroup's profits dramatically in the third quarter, but America's largest banking group still reported a net profit of $2.4 billion.
Citigroup, which had warned its profits would moderate significantly due to the problems in the mortgage market, reported earnings per share of 47 cents.
Most analysts had expected only 44 cents per share, but a sale of shares in Brazilian finance firm, Redecard, helped pad out earnings. But overall profits fell by 57% from the same period a year ago. Overall revenues rose 6% to $22.7 billion.
'This was a disappointing quarter, even in the context of the dislocations in the sub-prime mortgage and credit markets,' said Citigroup chairman and chief executive Charles Prince.
Citigroup and other big Wall Street banks have seen their earnings ravaged by exposure to sub-prime mortgages, home loans granted to Americans with patchy credit records.
