Citigroup writes down $15.1bn

by Gill Montia

Story link: Citigroup writes down $15.1bn

Citigroup has reported a net loss of $5.1 billion for the first quarter of 2008, after writing down $15.1 billion (of which $6 billion related to sub-prime exposures).

The bank’s losses from the credit crunch now amount to around $33 billion.

The results were worse than expected, with analysts having predicted a loss of $4.75 billion for the quarter.

Revenues fell 48%, or $13.2 billion, largely as a result of write-downs in sub-prime related exposures and leveraged finance assets.

However, the group achieved a 42% rise in revenues in transaction services and reported strong growth in sales and trading in emerging markets.

Vikram Pandit, Citigroup’s chief executive, said he would continue to divest non-strategic assets in the second quarter of this year, and beyond.

The results come one day after Merrill Lynch posted a net loss of $1.96 billion for the first three months of the year, having added $6 billion to the $24 billion already written down since the onset of the credit crisis.

Citigroup is expected to cut up to 1,000 staff from its London offices in the coming weeks, as part of its cost-based review.