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This Wednesday, Dec. 5, 2012 photo, shows a Citi Bank sign in Chicago. Citigroup turned in a strong first quarter, but the sentiment from the bank was more cautious than celebratory.
This Wednesday, Dec. 5, 2012 photo, shows a Citi Bank sign in Chicago. Citigroup turned in a strong first quarter, but the sentiment from the bank was more cautious than celebratory.
(Kiichiro Sato/AP)

FINANCIAL TIMES

Citigroup treads cautiously with mortgages

Lex is a premium daily commentary service from the Financial Times. It helps readers make better investment decisions by highlighting key emerging risks and opportunities.

Citigroup has been fighting with one hand behind its back, Mike Corbat, chief executive, said in March. One big reason is Citi Holdings – the bank’s pool of troubled assets left over from the financial crisis. For the first quarter, Citigroup reported better than expected revenues (up 6 per cent year on year, to $21-billion (U.S.) ) and earnings per share (up 29 per cent year on year, to $1.23). The driver was the securities and investment banking division. But signs of improvement in Citi Holdings should not be overlooked.