Citi Posts $2.15 Bil. Profit As Loan Losses Decline

Citigroup says it has turned a profit for the third straight quarter as losses from failed loans declined.

Net income available to common shareholders totaled $2.15 billion, or 7 cents per share. That compares to a loss of $3.24 billion, or 27 cents per share, during the same quarter last year.

Analysts had predicted Citigroup would earn 6 cents per share.

The New York bank, among the hardest hit by the credit crisis, says losses from bad loans fell 30 percent during the quarter to $7.66 billion. Losses fell as defaults in Citi’s retail partner cards, Citi-branded credit cards and real estate portfolios all fell during the quarter.

Shares of Citi are up 6 cents at $4.01 in pre-opening trading.

NEW YORK (AP)