TARP cripples Citi’s Q4 results
(21 January 2010 – USA) US financial institution Citigroup has reported a 2009 fourth quarter net loss of US$7.6 billion (A$8.2 billion) or US$0.33 per share, contributing to an overall loss of US$1.6 billion for the full year.
Excluding the US$6.2 billion after-tax loss associated with TARP repayment and exiting the loss-sharing agreement, the fourth quarter net loss was US$1.4 billion or US$0.06 per share.
Citigroup’s 2009 managed revenues increased 49 percent to US$91.1 billion.
Fourth quarter net credit losses of US$7.1 billion were down US$0.8 billion from the prior quarter, marking the second consecutive quarter of improvement. Managed net credit losses were US$10.0 billion, down from US$11.0 billion in the prior quarter.
The Government still holds a major stake in Citi from having converted some of its investment to common shares.
Chief executive officer, Vikram Pandit, Citigroup said that the bank had improved its capital strength, reduced the size and scope of the company and refocused their business strategy.
John Gerspach, chief financial officer, Citigroup said although the company remained cautious and continued to monitor the future impacts of its loss mitigation efforts, there were indications that credit may be stabilising or improving, particularly in Asia and Latin America.
Citigroup’s 2009 managed revenues increased 49 percent to US$91.1 billion.
Fourth quarter net credit losses of US$7.1 billion were down US$0.8 billion from the prior quarter, marking the second consecutive quarter of improvement. Managed net credit losses were US$10.0 billion, down from US$11.0 billion in the prior quarter.
The Government still holds a major stake in Citi from having converted some of its investment to common shares.
Chief executive officer, Vikram Pandit, Citigroup said that the bank had improved its capital strength, reduced the size and scope of the company and refocused their business strategy.
John Gerspach, chief financial officer, Citigroup said although the company remained cautious and continued to monitor the future impacts of its loss mitigation efforts, there were indications that credit may be stabilising or improving, particularly in Asia and Latin America.
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