Citigroup profit up 18 pct. on international growth

Revenue rose faster than expenses for a second consecutive quarter, as Chief Executive Charles Prince continued to emphasize controlling costs amid pressure from many shareholders to re-energize a long-lagging share price. Credit losses soared, but at a rate in line with levels at other banks.

Citigroup shares rose 1.2 percent in early electronic trading.

Net income for Citigroup rose to $6.23 billion, or $1.24 per share, from $5.27 billion, or $1.05, a year earlier.

Revenue jumped 20 percent to $26.63 billion, while operating expenses were up 16 percent. Excluding acquisitions, revenue rose 16 percent, and costs rose 12 percent.

Excluding items, profit totaled $1.18 per share, according to Reuters Estimates, 5 cents above the average Wall Street expectation. Analysts, on average, looked for revenue of $24.88 billion.

The quarter included the early impact of a cost-cutting plan announced in April. It was designed to slash 17,000 jobs to help cut spending by $4.58 billion.

Prince said the program is generating "improved efficiencies," as Citigroup continues to get more international business. International profit rose 35 percent to $3.04 billion, while revenue increased 34 percent to $12.56 billion.

Citigroup shares advanced to $51.75 in premarket trading after closing Thursday at $51.13 on the New York Stock Exchange. They have fallen 8 percent this year, compared with a 4 percent decline in the Philadelphia KBW Bank Index.

Among other large U.S. banks, No. 2 Bank of America Corp. posted a 5 percent increase in quarterly profit, while No. 3 JPMorgan Chase & Co. (JPM.N: Quote, Profile, Research) recorded a 20 percent gain earlier this week.