Citigroup posts smaller loss; shares surge

The third-largest U.S. bank joined Goldman Sachs Group Inc (GS.N), JPMorgan Chase & Co (JPM.N), Wells Fargo & Co (WFC.N) and others in posting results that suggest massive government efforts to jump-start the ailing economy are helping boost bank profits, though the industry's problems are far from over.

"Perhaps the banking sector crisis is bottoming," said Richard Hunter, head of U.S. equities at Hargreaves Landsdown in London.Citigroup also said on Friday it plans to delay a proposed exchange of billions of dollars of preferred shares into common stock until the U.S. government completes its "stress tests" of large banks to gauge which might need more aid. Citigroup has taken $45 billion of taxpayer money in a series of bailouts.

Citigroup's quarterly loss available to common shareholders narrowed to $966 million, or 18 cents per share, from $5.19 billion, or $1.03, a year earlier. Revenue roughly doubled to $24.79 billion.Analysts on average had expected a loss of 30 cents per share on revenue of $21.73 billion, according to Reuters Estimates.

Citigroup shares rose 37 cents, or 9.2 percent, to $4.38 in premarket trading. They hit a record low of 97 cents on March 5.Chief Executive Vikram Pandit has been slashing costs and trying to unload weak businesses and assets. The New York-based bank cut 13,000 jobs in the first quarter, ending with 309,000, and shed $116 billion of assets, ending with $1.82 trillion.