Vikram Pandit, the Chief Executive Officer (CEO) of US banking giant Citigroup, has stepped down from the board effective immediately, the firm said on Tuesday.

Pandit, who has led the company through the $45bn government bailout in 2008, said in a statement that he is leaving Citi as "well-positioned for continued profitability and growth, having refocused the franchise on the basics of banking".

The news comes just one day after the firm beat earnings forecasts in the third quarter.

Pandit said that given the progress the company has made in the last few years, now is the "right time for someone else to take the helm".

The board praised Pandit's "leadership, integrity and resilience in guiding Citi through the crisis and positioning it well for the future."

Michael Corbat, previously Citi's CEO of Europe, Middle East and Africa, has been named as Pandit's successor, following a unanimous decision by the board.

Pandit said: "Mike is a proven, hands-on leader who is known for his focus on enhancing productivity, holding people accountable and practicing sound risk management. He has consistently delivered impressive bottom-line results at many of our major global business units and has forged a strong track record of improving efficiency and mitigating risk while also optimising the allocation of the company's capital.

"I will truly miss the wonderful people throughout this organisation. But I know that together with Mike they will continue to build on the progress we have made."

Citi announced on Monday that third-quarter earnings per share (excluding extraordinary items) were $1.06, above the 97 cents expected by the market. Including extraordinary items, earnings dropped 88% to 15 cents; one-off items included a tax benefit, a write-down for the disposal of its stake in Smith Barney and accounting adjustments.

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