Finance News

Citigroup reports Q4 net loss of $9.83 billion

Citigroup has reported a net loss for the 2007 fourth quarter of $9.83 billion, or $1.99 per share, and net income of $3.62 billion or $0.72 per share for the full year 2007.

Citigroup has also reported an $18.1 billion in pre-tax write-downs and credit costs on sub-prime related direct exposures in fixed income markets, and a $4.1 billion increase in credit costs in US consumer primarily related to higher current and estimated losses on consumer loans, for the fourth quarter.

The company has reported fourth quarter revenue of $7.2 billion, down 70% from the same period of previous year. In the fourth quarter, company's US consumer revenues have grown 6%, driven by higher business volumes with average deposits and managed loans, both up 10%. Citygroup's operating expenses have increased 18% from the same period of previous year.

Vikram Pandit, CEO of Citi, said: "Our financial results this quarter are clearly unacceptable. Our poor performance was driven primarily by two factors - significant write-downs and losses on our sub-prime direct exposures in fixed income markets, and a large increase in credit costs in our US consumer loan portfolio. Looking beyond these two factors, revenues and volumes continued to grow strongly in a number of our franchises and we generated record results in international consumer, transaction services, wealth management, and advisory."

Source: Banking Business Review
Date: 19.01.2008 [ID: 160]

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