The New York-based bank said net income rose to $6.23 billion, or $1.24 per share, in the April to June period, from $5.27 billion, or $1.05 a share, in the same period a year earlier.

Revenue in the quarter grew 20 percent to a record $26.63 billion from $22.18 billion a year earlier. International revenue soared 34 percent.

The results beat the average forecast of analysts surveyed by Thomson Financial of earnings of $1.13 a share and revenue of $24.89 billion.

"We have very clear priorities to drive growth and we are executing on all of them," said Chairman and Chief Executive Charles Prince in a statement accompanying the report. "We generated record revenues, up 20 percent, and record earnings from continuing operations, up 18 percent, both driven by our record international results."

Operating expenses rose 16 percent due to higher business volumes and acquisitions the company said it opened or bought 160 new retail bank or consumer branches in the second quarter, 136 of which were abroad.

Credit costs rose $934 million, as net credit losses increased $259 million and after Citigroup padded its loan loss reserves by $465 million. In the second quarter of 2006, Citigroup had released $210 million from its reserves.