Citigroup 1Q Earnings Decline 11 Percent

The Citibank logo is shown on a branch office in this April 11, 2007 file photo in New York. First-quarter profit at Citigroup Inc. dropped 11 percent as the nation's largest financial institution took a charge to cover a massive restructuring designed to cut costs and improve earnings. Still, the results announced Monday, April 16, 2007 beat Wall Street expectations. (AP Photo/Mark Lennihan, file) (Mark Lennihan - AP)

NEW YORK -- First-quarter profit at Citigroup Inc. dropped 11 percent as the nation's largest financial institution took a charge to cover a massive restructuring designed to cut costs and improve earnings. Still, the results announced Monday beat Wall Street expectations.

The New York-based bank said net income was $5.01 billion, or $1.01 per share, in the January-March period, down from $5.64 billion, or $1.12, a share, a year earlier.

Revenue in the quarter was a record $25.5 billion, up 15 percent from $22.2 billion a year earlier.

Excluding a $1.38 billion charge for restructuring, net income was $5.88 billion, or $1.18 a share.

Analysts surveyed by Thomson Financial had projected earnings of $1.09 in the quarter, excluding charges, on revenue of $24.2 billion.

Citigroup shares advanced 93 cents to $52.53 in early trading on the New York Stock Exchange.

Also Monday, Wachovia Corp. said first-quarter earnings rose 33 percent, helped by growth in lending income and the acquisition of Golden West Financial Corp.

The Charlotte, N.C.-based bank said net income climbed to $2.30 billion, or $1.20 per share, from $1.73 billion, or $1.09 per share, a year ago. Results for the first quarter of 2007 included the bank's $24 billion acquisition of Golden West, which closed in October. Revenue grew to $8.24 billion from $7.1 billion last year.

Excluding merger and restructuring charges, the nation's fourth-largest bank earned $2.31 billion, or $1.20 per share, in the latest quarter.

Analysts estimated earnings of $1.16 per share on revenue of $8.56 billion, according to a poll by Thomson Financial.

In early morning trading, Wachovia shares rose 85 cents to $54.85 on the NYSE.

Chairman and Chief Executive Charles Prince said in a statement accompanying the report that "We achieved these results while completing our structural expense review, which will help us become a leaner, more efficient organization and lower our rate of expense growth."