The New York-based lender said net income was $2.93 billion, or 95 cents a share, compared with $2.99 billion, or 99 cents a share, a year earlier.
Earnings per share were $1.11 excluding the impact of accounting adjustments for changes in the value of the bank's debt and that of its counterparties.
Revenue from its ongoing securities trading and investment banking declined 12 percent from the strong quarter a year earlier, but rose 65 percent from the weak 2011 fourth quarter.
While the operating environment improved in the first quarter, there is still much macro uncertainty and we will continue to manage risk carefully, Chief Executive Vikram Pandit said in a statement issued by the company.
Citi shares were up 59 cents, or 1.8 percent, to $34.00 in premarket trading.
(Reporting by David Henry in New York; editing by John Wallace)