Citigroup Net Rises; Shares Drop on Higher Expense Forecast

Citigroup Inc., the third-biggest U.S. bank, said profit rose 24 percent, beating analysts’ estimates on higher investment-banking fees and reductions in loan-loss reserves. The shares declined after the bank said expenses will be higher than previous forecasts.

Second-quarter net income rose to $3.34 billion, or $1.09 a share, from $2.7 billion, or 90 cents, in the same period last year, New York-based Citigroup said today in a statement. The average estimate of 23 analysts surveyed by Bloomberg was for earnings per share of 96 cents.