Citigroup profit climbs on higher interest income

(Reuters) -Citigroup Inc reported a rise in first-quarter profit on Friday as it earned more from borrowers paying interest on loans.

However, it set aside $241 million in provisions in the quarter against the backdrop of a slowing economy and compared to a reserve release of $138 million a year ago.

The global banking sector was jolted by the collapse of Silicon Valley Bank and Signature Bank last month, which wiped out billions of dollars in market value.

In Europe, Credit Suisse was rescued by rival UBS Group AG in a government-backed takeover.

Citis investment banking revenue sank 25% from $774 million a year ago, weighed down by the most sluggish market for deals in more than a decade.

It slipped four rungs to the ninth position in 2023 in the list of financial advisors based on deal value, according to data from Dealogic.

Net income rose 7% to $4.6 billion, or $2.19 per share, in the three months to March 31 from $4.3 billion, or $2.02, a year earlier.

(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Lananh Nguyen and Arun Koyyur)