$5.1bn Loss Reported By Citigroup

by Elisha Sanders

Story link: $5.1bn Loss Reported By Citigroup

US investment banking heavy-weight, Citigroup, has just announced that the first quarter saw the bank lose another $5.1 billion after they were forced to write down close to $16 billion.

This is the second subsequent loss for the company, who have announced that, as a part of their effort to dramatically reduce their cost base by 20%, they are looking to cut around 9000 jobs from their 370,000 person workforce.

On the stock market, analysts had predicted Citigroup to lose 0.96c per share, however the bank went even lower than that to $1.02 per share. This is a 48% reduction in overall revenues for Citigroup.

Citigroup has been one of the worst affected by the downfall of the sub-prime market, and underperformed on Wall Street in the last quarter.

Analysts are predicting that the downturn in the housing market will lead to mortgage and credit losses for the whole span of 2008.