NEW YORK — Citigroup’s net income fell 12 percent in the second quarter, partly because of a loss on the sale of its stake in a Turkish lender. The profit of $2.9 billion was still better than analysts were expecting.
Citi is one of the world’s largest international banks, and its results are often seen as a gauge of how the global economy is doing. Investors are particularly concerned about recent signs of a slowdown in China and India, two large markets for Citi. Citi’s consumer banking business in Asia and Latin America declined by less than 1 percent.
“We are largely an urban bank in Asia, and cities are growing,” Vikram Pandit, Citigroup’s chief executive, said in a conference call with analysts. “Urbanization is a very powerful trend. Middle class is growing. People are coming in the cities. That’s what drives our business.”
In a separate conversation with journalists, Citi’s chief financial officer, John Gerspach, said the strength in the dollar versus other currencies had a negative impact on the bank’s earnings from overseas.
Gerspach said the Mexican peso depreciated about 5 percent in the quarter and the Brazilian real about 11 percent. Without the effect of currency depreciations, Gerspach said, Citi’s overseas business grew. Gerspach said Citi was excited about the opportunities for growth in those two countries, especially in credit cards.
As more of its customers paid back loans on time, Citi kept aside less for future losses. The bank reserved $27.6 billion at the end of the quarter, compared with $34.4 billion in the same period a year ago.
Revenue was $18.6 billion, down 10 percent from the year-ago quarter. Analysts expected $18.8 billion.
