Citigroup shares surge over 10% on profit beat, core business strength

The bank's profit fell to $4.5 billion, or $2.19 a share, in the quarter ended June 30, from $6.2 billion, or $2.85 a share, a year earlier

Citigroup Inc shares surged more than 10% on Friday after the third-largest US bank posted a smaller-than-expected 27% drop in quarterly profit on unusual strength in its treasury services business and its trading desks cashed in on market volatility, cushioning a slump in investment banking.

The Treasury and Trade Solutions (TTS) business, Citi's crown jewel, posted a 33% jump in revenue to $3 billion on the back of higher net interest income and fee growth, the best performance in a decade, the bank said.

Markets revenue, meanwhile, jumped by 25% to $5.3 billion, thanks to volatility in the commodities and foreign