Home / Markets / Industries / Finance

Thursday, October 16, 2008

Citigroup Loses $2.8B, Slashes 11,000 Jobs

FOXBusiness

Citigroup (C), the largest U.S. bank by assets, has now suffered its fourth straight losing quarter as it works its way through the credit crisis.

Citigroup lost $2.8 billion, or 60 cents per share, compared with net income of $2.21 billion, or 44 cents a share, a year earlier. Revenue fell by 23% to $16.7 billion.

The net loss was better than the Thomson-Reuters analyst prediction of a 70 cent per-share loss.

Citigroup wrote down a total of $4.4 billion in securities and banking in the quarter, after already losing $13.2 billion in the credit market for bad loans and writedowns this year.

In September, Citi executives predicted a net loss of anywhere from $5 billion to $10 billion in consumer loan losses.

This quarter’s results include $4.9 billion in credit losses and $3.9 billion paid to increase reserves for loan losses. One year ago to date, Citi had losses of $2.91 billion for write-downs, and $2.98 billion in consumer credit losses.

In addition to a monetary loss, Citi also cut 11,000 jobs in the latest quarter Citi’s revenue fell by 23% to $16.7 billion, all evidence that Chief Executive Vikram Pandit has been unable to return the bank to profitability.

Pandit lost out to Wells Fargo (WFC) in his efforts to purchase Wachovia (WB) in October in order to gain $450 billion in deposits.

Fox Business Video

- The Crisis With 20/20 Hindsight
- Nov 21, 2009
  
  FOXBusiness.com LIVE
- Jerry Rice Talks Career
- Nov 21, 2009
  
  NFL Receiver on career on the gridiron
- John O'Hurley as Venture Capitalist
- Nov 21, 2009
  
  Comedian on life as venture capitalist
- Excess Spending in Congress
- Nov 21, 2009
  
  Saving $100 Million
- Cavuto Business Report 11-20-09
- Nov 21, 2009
  
  Business Report: Cavuto