Bank stocks rallied for a second consecutive day as Citigroup Inc.'s chief executive officer announced that the New York company's performance so far this quarter has been its best since the third quarter of 2007.

The KBW Bank Index soared 15.56%, after news reports that Vikram Pandit informed employees Monday that Citi had an operating profit of $8.3 billion before taxes and "special items" for the first two months of this year. The company's stock increased 40 cents, to $1.45.

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