Citigroup, the No. 3 US bank, reported second-quarter profit that beat analysts’ estimates on revenue from advising on mergers, corporate lending and underwriting stocks and bonds.

Net income fell 12 percent to $2.95 billion, or 95 cents a share, from $3.34 billion, or $1.09, a year earlier.

Revenue from advising clients on mergers and acquisitions helped CEO Vikram Pandit, 55, manage declines in trading stocks and bonds amid fallout from the European sovereign-debt crisis.

Citigroup’s 21 percent drop in investment-banking revenue was smaller than the 35 percent decline JPMorgan Chase reported last week.

Citigroup shares rose 0.6 percent to $26.81.

Revenue from trading stocks and bonds fell 9 percent excluding an accounting adjustment, to $3.37 billion.

Trading revenue at JPMorgan declined 15 percent to $4.54 billion.