(January 16) – “Citigroup’s fourth-quarter profits rose 11 per cent to $3.33bn, helped by strong growth in its consumer business, the largest US financial services company reported on Tuesday,” says today’s FT.com.

“Excluding a $146m charge related to its acquisition of Associates First Capital last year, the US company earned 65 per cents per share, in line with analysts’ expectations.”

“Citigroup’s consumer business, which provides banking, lending and investment services, turned in profits of $1.47bn, up 25 per cent on the previous year, lifted by its credit card and insurance businesses.”

“But while total income from Citigroup’s corporate and investment banking division rose 10 per cent from a year earlier to $1.41bn, earnings at Salomon Smith Barney fell 13 per cent to $716m.”

“Citigroup blamed an industry-wide slowdown in investment banking and securities brokerage, as well as expenses related to its acquisitions of Schroders and Copelco in 2000 and ‘a substantial increase in compensation costs in response to competitor practices and investment spending.’ “

“Investment management and private banking group income rose 8 per cent to $163m, while income from Citigroup’s investment activities – which consists primarily of venture capital investments – fell to $203m, down both on the previous quarter’s $292m and the previous year’s $213m.”

“The company earned a record $14.14bn for the full year in 2000, up 25 per cent on a year earlier.”