Citigroup posts $101-million Q3 profit

Stricken US banking giant Citigroup exceeded expectations on Thursday, posting a third-quarter profit of $101 million.

Special dividends towards a massive government bailout resulted in 27-cent-per-share loss to shareholders, which was better than the expected loss of 38 cents per share.

Citigroup has received around $45 billion in capital from the US treasury to shore up its finances of which some has been converted into common stock. With the bailout funds the government holds a 34 per cent stake in the one time biggest financial group, which is now working toward repaying the government.

According to chief executive officer, Vikram Pandit, the bank continues to execute steadily against its plan with sustainable profitability remaining its primary goal over the near term.

Even as consumer credit trends ease in international markets the US scenario remains challenging, he added.

Citi has been deep in the red following the collapse of the US housing bubble and a worldwide financial squeeze which saw the company losing $418.7 billion in 2008. The government then stepped in with a massive aid package.