Citigroup posts $1.6bn loss for 2009
by Gill Montia
Story link: Citigroup posts $1.6bn loss for 2009
Citigroup has posted a $1.6 billion loss for 2009, recovering from a $27.7 billion deficit in 2008.
Notably, the group’s investment banking activities produced 2009 profit of $7.1 billion, compared with a $764 million loss a year earlier.
The bank, which reported a modest net profit of £101 million in the third quarter of 2009, has received $45 billion in US government support.
In December, Citi announced that it is preparing to exit the US Troubled Asset Relief Program in a move that involves a $17 billion issue of new shares.
However, the group plans to repay only $20 billion of its debt, allowing the US government to retain a 34% stake in the business to be sold sometime in the next 12 months, hopefully showing a profit for the US taxpayer.
Commenting on the 2009 results, chief executive Vikram Pandit said: “We greatly improved Citi’s capital strength, reduced the size and scope of the company and refocused our business strategy to take advantage of our unmatched global network.”
Meanwhile, Mr Pandit continues with his pledge to work for a salary of one dollar a year and no bonus, until the bank returns to profitability.
