Citigroup has reported a 74% increase in its third quarter profit.

花旗集团第三季度利润增长74%。

The US bank reported net income of $3.8bn (£2.4bn), marking its seventh consecutive¹（连贯的） quarter of being in profit.

The earnings² were helped by the fact that the business set aside（驳回，撤销） less money to cover bad loans.

Revenues were also lifted by an accounting³ gain, termed a credit valuation adjustment (CVA), which lenders can make when the markets are turbulent（骚乱的） .

Citigroup said its revenues would have been 8% lower on the year had it not made the change to its numbers.

JP Morgan Chase made a similar adjustment to its profits when it reported a 4% fall in its net income last week.

Improved asset quality

Citigroup is the third biggest bank in the US by assets and received two government bailouts in 2008.

The latest results suggest its exposure to risky⁴ assets has continued to fall.

The bank said its holdings of non-accrual corporate⁵ loans was 58% lower than the previous year at $4.2bn, while its exposure to non-accrual consumer loans fell 36% to $7.9bn.

Loans are classed as being non-accrual if the borrower does not pay off（付清） the interest rate or principal for 90 days or more, putting them at risk of default.

Citigroup said it also planned to retain its store card business. The unit issues credit cards using retailers⁶' brands, rather than that of the bank.

Historically customers had been more likely to default on these types of cards, and the division had been earmarked for disposal. But the bank says the unit earned $2.2bn over the first nine months of the year, and it now plans to reintegrate it with its main Citicorp business.

The news from Citigroup's investment banking⁷ business was not as good, with net revenues 21% down on the year because of a drop-off in mergers⁸ and acquisitions, and corporate fund raising.

"Citi continues to navigate⁹ a challenging economic environment and delivered another quarter of solid operating results," said Vikram Pandit, the bank's chief executive.

Citigroup's shares rose 2% after its results were released.