The broader financial-services sector got a lift yesterday after Citigroup Inc's chief executive, Vikram Pandit, said the bank operated at a profit in January and February. Shares across the entire financial-services sector rose sharply in afternoon trading.

"Historically, they are a bellwether firm," John Jay, a senior analyst at Aite Group, said of Citi.

The KBW Bank Index, which tracks 24 of the largest United States banks, jumped 12.8 per cent to 22.11 yesterday afternoon. The KBW Insurance index, which tracks 24 insurers, jumped 7.2 per cent to 46.66.

The financial-services sector rallied throughout the day after Pandit said the embattled bank was profitable through the first two months of the year on a pretax basis, excluding certain items such as potential write-downs and loan-loss provisions.

"Today, it's mostly about Citi," said Scott Valentin, a managing director at Friedman, Billings, Ramsey & Co. Citi's expansive operations touch nearly every part of the financial-services sector, Valentin noted.