Citigroup yesterday reported flat underlying earnings for the third quarter, with strong results from its investment bank offsetting weakness in its US consumer businesses and a $222 million (€184.5 million) after-tax charge related to Hurricane Katrina. The bank employs 1,600 people in Dublin.

Chief executive Chuck Prince said the performance of its corporate and capital markets-driven businesses was "excellent" but that there was "sluggish" revenue growth in its US consumer arms.

Although customer volumes increased, US consumer profits were hit by the narrowing gap between short and long-term interest rates and an increase in bankruptcy filings.

"The strength of our diversified platform allowed us to absorb costs associated with Katrina, as well as a year over year swing in credit costs of more than $1.6 billion," said Mr Prince.

He said he was "very proud" of the 15 per cent growth in revenue to $21.5 billion without the benefit of acquisitions, but underlying income slipped 1 per cent to $4.99 billion. Citigroup's reported net income rose 35 per cent to $7.14 billion, including a $2.12 billion gain on the sale of Travelers Life & Annuity to MetLife.

Corporate and investment banking income rose 24 per cent to $1.8 billion, thanks to record revenues in transaction services and strong growth across fixed-income markets, equity markets and investment banking.

But income from consumer businesses was down 13 per cent to $2.72 billion, with the big North American cards business down 6 per cent on revenue 2 per cent lower.

In the second quarter, Citigroup reported a 7 per cent drop in underlying earnings, the first such fall in four years. - (Financial Times Service)