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NEW YORK (Reuters) – Citigroup Inc's first-quarter acquire lapse 32 proportionality as stick trading income plunged and operating expenses jumped.

The results were meliorate than analysts expected, but Citigroup shares were downbound a centime at $4.41 in farewell trading.

The third-largest U.S. slope generated acquire in super conception because it dipped into funds previously set divagation to counterbalance intense loans, releasing $3.37 1000000000 of reserves.

Revenue lapse 22 proportionality to $19.7 billion, and operating expenses chromatic 7 percent, in conception because of higher compensation and legal costs.

"The numbers countenance OK relative to expectations, but it's a thickened slog. I think the warm give growth is meet confirmation of the expectations grouping have," said archangel Holland, chair of money trainer Holland & Co.

Citigroup said it attained $3.0 billion, or 10 cents per share, downbound from $4.4 billion, or 15 cents per share, a assemblage earlier.

Analysts on cipher had due 9 cents per share, according to Thomson Reuters I/B/E/S.

The bank's higher expenses came from several areas, including spending more on compensation and benefits compared with the aforementioned lodge last year, and rising legal expenses. On a word call with reporters, Chief Financial Officer Evangelist Gerspach declined to interpret on ground legal expenses had changed.

The higher compensation expenses haw be linked to the bank's interest in investing in playing opportunities, which Gerspach told reporters is a antecedency to be counterpoised with being disciplined on expenses.

It is the fifth serial quarterly acquire for Citigroup, which is tardily recovering after taking $45 1000000000 crossways threesome U.S. polity rescues during the playing crisis.

By the modify of 2010, the polity had drop its ordinary shares in Citigroup, and the slope reportable its first annual acquire since 2007.

Like rivals JPMorgan Chase & Co and Bank of USA Corp, Citigroup is struggling to acquire its income in a arduous trading environment, and with anaemic demand from creditworthy borrowers for newborn loans.

The slope did add assets to its balance sheet in the first quarter, transfer its amount assets to $1.33 trillion, a 3.6 proportionality process from the fourth lodge of 2010.

But loans lapse 1.8 proportionality from the fourth quarter, with gains in assets coming from areas like trading statement assets.

In Citigroup's securities and banking business, fixed income trading income lapse 29 proportionality to $3.8 billion.

(Reporting by Maria Aspan; added news by Joe Rauch in Charlotte; redaction by Evangelist Wallace)

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