Citicorp's British operations will earn about $120 million this year, against $40 million in losses last year and $100 million of red ink in 1989, a Salomon Brothers report says.

Most of this year's earnings will come from foreign exchange. Revenues from foreign exchange trading are expected to rise to $425 million, from about $310 million in 1990, Salomon said.

Citicorp had total revenues of some $600 million in Britain last year, according to Salomon estimates. About $100 million came from transaction banking, $130 million from corporate finance, and $60 million from venture capital.

Over the past two years, the bank has slashed its U.K assets by nearly 14%, to $12.5 billion.

Citicorp's U.K. units have been hit hard over the past few years by losses on investment banking operations and commercial real estate lending.

Salomon noted that the bank stood to lose about $50 million this year on U.K. real estate lending.

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