Citigroup rakes in £22,000 a minute

CITIGROUP, America's largest bank, made £22,000 a minute during the first quarter of the year as profits leapt 29% to a record $5.27bn (£2.94bn).

A credit binge by retail customers, fuelled by record low American interest rates, provided the bank with a massive windfall and there was also spectacular growth in profits outside the US.

Although the figures comfortably beat Wall Street expectations, Citibank's shares fell $1.03 to $49.92, hit by wider concerns-that future rises in US interest rates will create a harsher environment for the country's consumer, mortgage and credit-card lending.

Credit-card lending was the star performer during the quarter with income soaring 37% to $980m. Consumer business rose 21% to $2.58bn and retail banking rose by the same amount to $1.12bn.

Profits outside the US, excluding the acquisitions in which the bank is currently engaged, grew 32% to $1.61bn.

Citigroup's results confirm the strength of US consumer lending, which has resulted in an unprecedented level of indebtedness among the public.

It also highlights the strength of the banking sector, which has recovered impressively in the past few quarters.