Citigroup reported second-quarter earnings that topped forecasts even as revenue fell short of estimates.

The bank reported a 12% decline in net income to $2.9 billion, or 95 cents a share. Excluding items, earnings per share came in at $1. Analysts had expected Citi to earn 89 cents a share.

Citigroup's revenue came in at $18.6 billion in the second quarter, down 10% from the prior year and falling short of the $18.8 billion analysts had expected.

The bank attributed the drop in earnings to the ongoing winding down of Citi Holdings, created to hold the firm's "troubled assets." Citi Holdings' revenue dropped 62% from the prior year's quarter, while the rest of the bank's revenues were largely unchanged.

Citi's expenses also declined by 6% from the previous year's quarter to $12.1 billion.

"Our core businesses performed well in a difficult environment and are generating solid returns," CEO Vikram Pandit said in a statement.

Shares of Citigroup rose 0.8%.

Citigroup, often touted as the world's financial supermarket, experienced declines in all corners of the world except North America, where both revenue and profit rose.

Pandit said he expects to start seeing better growth from emerging markets, particularly in China.

"We feel better about Asian economies than we did a few months back," Pandit told analysts on a conference call. Central banks and politicians in China still have the ability to take action if the economy shows significant signs of slowing, Pandit said.