Citigroup Inc. swung to a second-quarter profit on a $6.7 billion gain related to the combination of its Smith Barney brokerage operations with those of Morgan Stanley.

The results masked a 7% revenue drop at its securities and investment-banking operations, while deposits rose 6% during the quarter and operating costs dropped 21% as Citigroup continues its effort to streamline its operations long criticized as bloated. Headcount fell 30,000, or 9.7%, during the quarter.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.