(Reuters). Citigroup Inc (NYSE: ) beat market expectations for its third quarter profit, beating the market estimate on Thursday. The bank released loan loss reserves and received a windfall in fees from equity banking and advice.

Net income increased 48% from $3.1 million, or $1.36, to $4.6billion in the third quarter of last year. According to Refinitiv IBES data, analysts had predicted a profit average of $1.65 per shares.

Profits were buoyed when the bank decided to remove $1.16 billion worth of loss reserves it had built in the pandemic that characterized potentially sour loans. Citigroup’s reserves had grown by $436 million a year prior.

The investment banking revenue increased by 39% to $1.9billion, which offsets a 16% decrease in fixed income revenue from last year’s unprecedented volatility.

Lower net interest revenues and higher expenses weighed down results, as well as customers who were using their stimulus funds to repay their credit cards loans.

Jane Fraser, chief executive officer of the firm said she was pleased to see $4.6 billion net income in such a challenging environment.

The company increased its spending on technology and people to meet regulators’ demands. Operating expenses rose 5% to $11.5billion.

The net interest revenue fell 1% compared to a year ago, but it was 2% higher than the second quarter. This suggests an end of the downward trend started by the pandemic and when the Federal Reserve reduced interest rates to almost zero. Many borrowers also paid down their loans.

Citigroup’s Treasury and Trade Solutions division suffered from lower interest rates. Revenue declined by 4%, despite the fact that it received more fees and experienced growth in trading.

North American revenue from Citi-branded Cards declined by 1%, while that from retail cards fell by 6%.

These results include the effect of the earlier announced loss of Australia’s consumer banking business.