Citi posts $7.6 bn loss in Q4 `09; sees `enormous` progress
Banking behemoth Citigroup has reported a loss of USD 7.6 billion for the three months ended December 2009, mainly on account of expenses related to repayment of bailout funds.
New York: Banking behemoth Citigroup has
reported a loss of USD 7.6 billion for the three months ended
December 2009, mainly on account of expenses related to
repayment of bailout funds.
However, Citi`s India-born Chief Vikram Pandit said it
witnessed "enormous progress" in its restructuring efforts.
Excluding the charges related to repayment of bailout
funds, the entity recorded a loss of USD 1.4 billion for the
December quarter, it said in a statement today.
In the year-ago period, Citi, battered by the financial
crisis, had a fourth quarter loss of USD 8.29 billion.
"We have made enormous progress in 2009," Pandit said.
"We created Citi Holdings to rationalise non-strategic
businesses, totally overhauled risk management, cut costs by
over USD 13 billion annually, reduced headcount by 100,000,
reduced assets by USD 500 billion from peak levels," he noted.
Citi incurred charges to the tune of USD 6.2 billion
associated with paying back Federal funds worth USD 20 billion
and exiting loss-sharing agreement with the government.
Citigroup had split itself into two -- Citicorp and Citi
Holdings. In the fourth quarter, Citicorp had a loss of USD
1.7 billion while Citi Holdings lost USD 2.5 billion.
For 2009, Citi posted a loss of USD 1.6 billion.
"While the environment continues to be challenging, we
have a strong capital base and client franchise... we continue
to see indications that credit may be stabilising or improving
particularly in Asia and Latin America," Citi`s CFO John