Citigroup delivers strong second quarter earnings, misses expectations

The New York City-based financial intermediary, Citigroup, today announced earnings for the second quarter of 2010.

The bank reported total revenue of $22.1-billion, and a strong $2.7-billion ($0.09 per share) net profit for the period, marking the second straight quarter of consecutive growth.

Net earnings topped The Street’s expectations, but the Citigroup stock (NYSE:C) is trading more than 3.70-percent down to about $4 per share as actual revenue missed expectations.

 Compared to the same period in 2009, the company recorded a $4.3-billion profit.

The company’s Tier 1 capital ratio was strong and above federal requirements at 12-percent in the period, up marginally from 11.3-percent from the first quarter of 2010.

The strong earnings in this quarter reflect significant declines in provisions for loan losses.

Citigroup reported total loan credit losses of $8-million, marking a 5-percent decline from the same period in the last fiscal year.

Provisions for loan losses improved for the fourth straight quarter.

As Citigroup continues to strengthen financially, the U.S. Treasury is continuing to lower its total stake in the company after it gained significant shares during the financial crisis part of a bailout program. The U.S. Treasury recently announced it would sell 1.1-billion shares today at fair value.