Citi returns to profits after five quarters of losses

After five consecutive quarters of losses, crisis-ridden Citigroup Inc has returned to profitability. The financial services major posted a profit of 1.6 billion dollars in the first quarter of this year against a whopping loss of $ 5.11 billion in the same period last year.

Citigroup's revenue soared 99 % at $ 24.8 billion in the first three months this year, driven by strong results in the Institutional Clients Group which were partially offset by net write-downs, a company statement said.

"Our results this quarter reflect strength of Citi's franchise and we are pleased with our performance. With revenues of nearly $ 25 billion  and net income (profit) of $ 1.6 billion , we had our best overall quarter since the second quarter of 2007," Citigroup Inc Chief executive officer Vikram Pandit said.

Many expect the Citigroup's turnaround to ease the concerns over recession in the US. On other hand, Internet search engine Google has also posted 8.45 % increase in profit for the first quarter which is also likely to infuse a fresh whiff of air into the sagging economy.