Citigroup reported a $4.3 billion profit for the period ended 30 June 2009, boosted by a $6.7 billion after-tax gain due to the sale of Smith Barney.

Citi’s second quarter revenues were $30 billion - up $12.4 billion from the second quarter of 2008 - including an $11.1 billion pre-tax ($6.7 billion post-tax) gain associated with the Morgan Stanley Smith Barney joint venture transaction, which closed on 1 June this year.

"For many quarters we have been consistently and successfully executing our plan to build financial strength and return Citi to sustained profitability and growth. We have made significant progress in recent quarters as evidenced in the significant decline in expenses, headcount, assets, including Citi's riskiest assets, as well as our 12.7 per cent Tier 1 capital ratio," said Vikram Pandit, Citi’s chief executive officer.

This means the bank's Tier 1 capital ratio is up from 8.7 per cent last year and from 11.9 per cent at 31 March.

Citi's private banking revenues were down 20 per cent to $477 million compared to the same three-month period of last year, on lower assets under management, decreased investment sales and lower average lending volumes, partially offset by wider lending margins, the bank said in its statement.

Similarly, investment banking revenues have dropped by 13 per cent from the second quarter of 2008 to $1.2 billion.

With 279,000 employers, the headcount is down about 30,000 compared to the first quarter, making June the twentieth  consecutive month of declining staff numbers at the bank. Operating costs were $12.0 billion - down 21 per cent from the prior year period.

Total assets were $1.85 trillion, down 12 per cent from the prior year level, and down 22 per cent from peak levels in the third quarter of 2007.