The bank predicts its Asia Consumer Banking business will swell during the second half of the year.

Citigroup is anticipating a surge in Asia and Latin America consumer spending which could help offset lower revenues in its North America business, according to chief financial officer John Gerspach.

Discussing the US-listed bank's second quarter results on a conference call on Friday, Gerspach said: "In International Consumer Banking, our investment spending should continue to generate revenue growth. We currently expect both Asia and Latin America consumer banking to achieve positive operating leverage in the fourth quarter of this year. International credit costs are likely to continue to increase in the second half of the year, reflecting a growing loan portfolio," said Gerspach, without giving more detail.

Globally Citi's private banking arm had a positive second quarter. It recorded total revenues of $555 million in the second quarter of 2011, an 8 per cent gain on the previous three months and also up by the same extent on a year before.

Citi said that second quarter group net income was $3.3 billion in the quarter, or $1.09 per diluted share, on revenues of $20.6 billion. Second quarter net income grew 24 per cent from the prior year period and 11 per cent from the first quarter 2011. The bank said that strong growth in International Consumer Banking and Transaction Services was "more than offset by lower revenues in Citi Holdings, Securities and Banking and North America Consumer Banking."

Net revenues were 7 per cent lower versus the prior year period and 5 per cent higher than the first quarter 2011.

The bank had a Tier 1 capital ratio of 13.6 per cent at the end of June, compared with 13.3 per cent three months earlier.

Like many of its peers, the bank has been recruiting aggressively in its Asia business as competition for market share in the high growth region grows fierce. Last month it hired three senior investment counsellors for its Singapore division.