Citigroup profits rise 16 percent

Citigroup was able to take a rare victory lap Thursday, reporting first- quarter results that were devoid of the kind of scandal, losses and regulatory missteps that have come to plague the bank.

Profit rose 16 percent, to about $ 4.8 billion, or $ 1.52 a share, after adjusting for various derivatives and fixed- income holdings. Those results easily beat analysts’ expectations of $ 1.39 a share. That compared with $ 4.15 billion, or $ 1.30 a share, on the same basis in the period a year earlier. Net income was $ 4.77 billion, or $ 1.51 a share, compared with $ 3.94 billion, or $ 1.23 a share, in the period a year earlier.

The increase was driven by lower expenses and strong investment banking revenue. Even mortgage origination, which had been in a slump, perked up in the first three months of the year.

Those increases were enough to offset a decline in fixed- income trading revenue as the bank struggled in volatile markets. Investors cheered Citigroup’s results, pushing its shares up by more than 1.5 percent.

“We had a strong quarter overall, particularly in executing against our top strategic priorities,” Citigroup’s chief executive, Michael L. Corbat, said in a statement.

The first quarter was uneven across Wall Street, with some banks posting improved trading results and others struggling, as low interest rates dragged on their retail deposits and debt holdings.

JPMorgan Chase announced strong fixed-income trading results earlier in the week, while Bank of America reported lackluster fixed- income activity, particularly in credit spreads. On Thursday, Citigroup said its fixed- income trading revenue dropped 11 percent in the quarter, while Goldman Sachs netted broad gains in stock, bond, currency and commodity trading.