Citigroup and General Electric earn more and lose less

The smallest loss since 2007 was reported by Citigroup Inc. The bank posted a first-quarter loss to common shareholders of $966 but before it earned $1.6 billion. A loss per share made up 18 cents instead of 34 cents which were predicted by analysts. A year ago, the company suffered a loss of more than $5 billion, or $1.03 a share. Shares rose 12 percent in pre-market trading. Strong trading activity in Citigroup's investment bank doubled its revenue in the first quarter from a year ago to $24.8 billion. Its credit costs were high, though - at $10 billion - due to $7.3 billion in loan losses and a $2.7 billion increase in reserves for future loan losses. General Electric Co. posted its first-quarter earnings fell 36% on sharply lower profits at its troubled finance arm, but it was less than Wall Street forecasted – not bad sign for the struggling company. Net income of GE made up $2.74 billion, or 26 cents per share compared to $4.30 billion, or 43 cents per share, a year earlier. Earnings from continuing operations also were 26 cents per share, surpassing the 21 cents per share forecast by analysts. GE shares rose 44 cents, or 3.7 %, to $12.27 in pre-market trading. Not only Citigroup but also JPMorgan Chase & Co., Goldman Sachs Group Inc., and Wells Fargo & Co. reported their surprisingly solid earnings over the past several days. Aren’t these the signals that the banking industry might not be as sick as many believed?