Citi posts another quarter loss
(20 October 2008 – USA) US Banking giant Citigroup have reported a net loss for the 2008 third quarter of US$2.8 billion (A$4.1 billion), including further credit write downs.
The result is the fourth consecutive quarterly loss for the bank.
Chief financial officer, Gary Crittenden, told investors that there were three factors that drove this quarter's results - higher consumer credit costs, continued losses related to the disruption in the fixed-income markets and a general economic slowdown.
Citigroup has been hit hard by the credit crunch and the write downs that have come with it, with revenue falling by 23 percent, to US$16.7 billion.
At US$4.4 billion, write-downs in Securities and Banking have decreased for the third consecutive quarter; however are still having an affect.
Crittenden said that the US$17 billion deposit inflow from the second quarter occurred later in the third quarter and occurred particularly in deposits from businesses as there was broad concern and probably a flight to quality.
Citi's largest business, consumer banking, recorded a US$1.1 billion loss, though revenue was up slightly, by 1.7 percent. Higher revenue in North America was offset in part by declines in Latin America and Asia.
The global credit card business swung to a US$902 million loss, while revenue fell 40 percent. Crittenden said it is possible that we may see loss rates exceed their historical peaks.
The institutional clients group, including Citigroup's securities and investment banking, posted a 48 percent drop in revenue and a US$2.02 billion loss.
Chief financial officer, Gary Crittenden, told investors that there were three factors that drove this quarter's results - higher consumer credit costs, continued losses related to the disruption in the fixed-income markets and a general economic slowdown.
Citigroup has been hit hard by the credit crunch and the write downs that have come with it, with revenue falling by 23 percent, to US$16.7 billion.
At US$4.4 billion, write-downs in Securities and Banking have decreased for the third consecutive quarter; however are still having an affect.
Crittenden said that the US$17 billion deposit inflow from the second quarter occurred later in the third quarter and occurred particularly in deposits from businesses as there was broad concern and probably a flight to quality.
Citi's largest business, consumer banking, recorded a US$1.1 billion loss, though revenue was up slightly, by 1.7 percent. Higher revenue in North America was offset in part by declines in Latin America and Asia.
The global credit card business swung to a US$902 million loss, while revenue fell 40 percent. Crittenden said it is possible that we may see loss rates exceed their historical peaks.
The institutional clients group, including Citigroup's securities and investment banking, posted a 48 percent drop in revenue and a US$2.02 billion loss.
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