Citigroup Announces 52 Percent Increase in Profits

First-quarter 2000 might be the charm for Citigroup Inc., the world’s largest financial services firm. Initial reports indicate a 52 percent rise in first-quarter profits. Most of the gains are due to success in the securities business and investment income. Growth in the consumer banking division has also aided growth. Net income for the quarter amounted to $3.59 billion, compared to $2.36 billion a year ago. Tomorrow, Sanford Weill will become Citigroup’s sole chief executive. John Reed, who has shared the position with Weill, will be retiring. Citigroup was formed in 1998 through the merger of Citicorp and Travelers Insurance Group. Their union preceded passage of financial services reform, which was finally passed in the fall of 1999.