10/17/2011 08:40 EDT | Updated 12/17/2011 05:12 EST

Citigroup earnings rise 74 per cent to $3.8 billion on lower loan losses

NEW YORK, N.Y. - Citigroup says its earnings rose 74 per cent in the third quarter, to $3.8 billion, after the bank recorded lower losses from loans.

Net income was $1.23 per share, on revenue of $20.86 billion. That's up from income of $2.2 billion during the same quarter last year.

Citi's earnings were helped by an accounting gain related to its credit holdings. Excluding the gain, the earnings were equivalent to 84 cents per share. Analysts surveyed by FactSet predicted Citigroup would earn 82 cents per share.

The New York bank says losses from bad loans fell 41 per cent during the quarter to $4.5 billion as defaults fell from its credit card loans for Citi-branded credit cards.

Shares of Citi are up 2 per cent to $29.05 in pre-opening trading Monday.