US banking giant Citigroup said quarterly profit plunged following a $4.7 billion writedown of its stake in a brokerage operated by Morgan Stanley.
CItigroup reported an increase in mortgage lending in North America and capital markets results rebounded.
The New York-based global bank said third-quarter net income was $468 million, or 15 cents a share, compared with $3.77 billion, or $1.23 a share, a year earlier.
Adjusted earnings, excluding the previously announced writedown and an accounting charge for the change in the value its debt, was $3.27 billion compared with $2.57 billion a year earlier.
The bank said profits from the Securities and Banking unit increased 67% on stronger revenue from fixed income and equity markets and lower expenses. The North American Consumer Banking segment saw an 18% increase in profits on higher mortgage revenues.
Results outside the United States were generally weaker, with income from International Consumer Banking down 3% and profits in transaction services provided to businesses and governments outside North America down by single-digit percentages.
In September Citigroup agreed on a price to sell its 49%interest in the brokerage to Morgan Stanley. At the time, it said it would take a charge to reduce the value of the stake on its balance sheet by about 40%.
The joint venture was created in the financial crisis in 2009 as a way for Citigroup to shrink by transferring its Smith Barney brokerage assets to Morgan Stanley.
