A branch of Citibank. Citigroup Inc reported a surprise first-quarter profit of US$4.4 billion yesterday.

The bank's stock rose about 1 percent in pre-opening trading. Other financial stocks extended a pullback in response to news that the government was charging Goldman Sachs Group Inc with civil fraud for mortgage-related transactions.

Citigroup said its total reserves to cover losses from bad loans fell 22 percent, or US$2.4 billion, from the fourth quarter to its lowest level in two years.