Net income at Citibank AG, the $9.2 billion asset German banking unit of Citicorp, fell 13.5% last year, to $77.5 million, after a 25% rise in provisions, to $268 million, for increased risks in retail activities.

Citicorp's retail business in Germany offers securities trading, insurance brokerage, lending, credit cards, and telephone and personal computer-based banking.

The increase in provisions came after what the bank described as a "continuing difficult economic situation in Germany," weak consumer spending, and high unemployment.

Total lending by the banking unit rose 3.2%, to $7.2 billion at the end of 1997. Operating profits before provisions rose 7%, to $484 million.

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