More than any of the other U.S. money center banks, Citigroup (NYSE:C) arguably most owes its continuing survival to the government's bailout. Staggering credit losses probably should have toppled this bank, but a huge infusion of cash stabilized the situation and the company is slowing pulling itself towards recovery. Citi's third-quarter earnings are not spotless, but do support the idea that this one-time giant has a future once again.
The Quarter That Was
A system-wide mess concerning foreclosure documentation has really dominated the talk about banks recently, but that was not a meaningful factor for Citigroup. What was meaningful was a 6% sequential decline in revenue (down approximately 10% year over year), but an overall improvement in credit. Although net interest income fell about 6% sequentially, the company did see some strength in equity trading, improved investment banking results and a decent performance in the regional consumer banking unit.
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