Citigroup, Wachovia Post Record Profits By Jonathan Stempel NEW YORK (Reuters) - Citigroup Inc. (C.N: Quote , Profile , Research ) and Wachovia Corp. (WB.N: Quote , Profile , Research ) , two of the four largest U.S. banks, on Friday reported record quarterly profits, as consumers borrowed more, bad loans declined and costs were kept in check. Citigroup, the largest bank, said first-quarter profit increased 3 percent, while Wachovia, the fourth-largest, reported a 30 percent increase. Citigroup also said it may buy back up to an additional $15 billion of stock. "In a challenging revenue growth environment, banks are focused on holding expenses down," said Mark Batty, an analyst at PNC Advisors in Philadelphia. "Wachovia has clearly done that and Citigroup is taking steps toward that. Credit quality appears to have improved again. That's a good sign, reflecting the economy's improvement." Another large bank, KeyCorp (KEY.N: Quote , Profile , Research ) , on Friday also reported higher profit. In morning trading on the New York Stock Exchange, Citigroup shares rose 2 percent, while Wachovia rose 0.7 percent and KeyCorp surged 4.7 percent. The Philadelphia KBW Bank Index rose 0.8 percent. CITIGROUP New York-based Citigroup said net income rose to $5.44 billion, or $1.04 per share, from $5.27 billion, or $1.01, a year earlier, helped by growth in retail banking, credit cards and international businesses. Profit from continuing operations was $5.17 billion, or 99 cents per share. Analysts polled by Reuters Estimates on average forecast profit of $1.02 per share. Batty estimated Citigroup earned $1.03 per share after accounting for items. Revenue rose 6 percent to $21.53 billion, below analysts' forecast for $22.56 billion, but increased twice as fast internationally as in North America excluding Mexico. Operating expenses rose 12 percent to $11.66 billion, but were little changed from the fourth quarter. "I feel very, very good about the international business as it relates to (the) consumer." said chief executive Charles Prince on a conference call. The 18-month stock buyback program would allow Citigroup to buy back 6.3 percent of shares outstanding as of Feb. 7, based on Thursday's closing price.     Continued ... Quelle "Citigroup, Wachovia Post Record Profits" : reuters.com Main page for "Citigroup, Wachovia Post Record Profits"