Citigroup reports quarterly profit

Citigroup has reported a quarterly profit of $1.6 billion after massive losses in 2008 -- the latest hopeful sign for the US banking sector. The first-quarter profit follows losses of $5.1 billion in the same period last year and $18.72 billion for the whole 2008. Total revenues rose 99 percent from a year ago to $24.8 billion. However, stockholders took a loss of 18 cents per share due to Citigroup's special share arrangements. "With revenues of nearly 25 billion dollars and net income of 1.6 billion, we had our best overall quarter since the second quarter of 2007," said Chief Executive Vikram Pandit. The first-quarter profit came while Citi reported a $1.2 billion loss in its consumer banking operations. The US government, which has already granted $45 billion in aid to the banking group, is to get a 36 percent stake in Citi. The credit crunch has forced Citi to shed 13,000 jobs since the fourth-quarter and 65,000 since peak levels, reducing the group's total workforce to 309,000. Separately, US conglomerate General Electric reported a 35 percent fall in first-quarter profit to $2.89 billion. However, the decline was less than analysts' expectations as GE's financial arm earned $1.1 billion. The economic downturn has reduced sales in most areas of GE's business, which range from jet engines to household appliances.