Citigroup profit up 18 pct. on international growth

INVESTMENT BANKING SURGES

Citigroup credit costs rose $934 million, including an increase of $259 million in net credit losses and a $465 million charge to boost loss reserves.

The bank set aside $2.52 billion for loan losses, up 75 percent from a year earlier. That compares with an 80 percent increase at Bank of America and a tripling at JPMorgan.

Corporate and investment banking profit surged 64 percent to $2.83 billion, as revenue increased 33 percent to $8.96 billion. Revenue increased 24 percent in fixed income markets, 67 percent in equity markets and 28 percent in investment banking.

Profit at its largest business -- its consumer unit -- fell 15 percent to $2.7 billion, though revenue increased 8 percent to $13.66 billion. Results were weaker in the United States, as credit quality deteriorated. Citigroup opened 160 retail banking and consumer finance offices in the quarter.

Wealth management profit, including the Smith Barney brokerage and private bank, rose 48 percent to $514 million. Profit from alternative investments rose 77 percent to $456 million.