Citigroup, the third biggest US bank by assets, reported its highest quarterly profit in eight years as restructuring and cost cuts paid off and legal expenses plunged.
Citi has been simplifying its structure by selling retail operations in several countries, shrinking its US branch network and disposing of non-core businesses.
Operating expenses in Citicorp, the bank's core businesses, fell 6% to $9.8 billion in the second quarter and were down 1% when adjusted for currency changes.
The expenses included $61m in restructuring charges, down from $397m a year earlier.
Revenue from Citicorp was unchanged at $17.5 billion, but rose 5% after adjusting for changes in foreign exchange rates.
Citi's said its net income rose to $4.85 billion, or $1.51 per share, in the quarter ended June 30 from $181m or 3 cents per share, a year earlier, when the bank was hit by a $3.8 billion legal charge.
Adjusting for legal costs and some accounting items, Citi's net income rose 18% to $4.65 billion, or $1.45 per share, from $3.93 billion, or $1.24 per share, a year earlier.
Analysts on average had expected earnings of $1.34 per share, according to Thomson Reuters.
