Citi posts $7.6 bn loss in Q4 `09; sees `enormous` progress
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Last Updated: Tuesday, January 19, 2010, 21:06
  
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 Gerspach said.

PTI


First Published: Tuesday, January 19, 2010, 21:06


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