Citigroup posts 4Q financial results; $7.8 billion lost
Citigroup announced a painful 4th quarter lost on Tuesday as the bank reported losses of $7.6 billion dollars. The bank cited the repayment of bailout funds, along with failed loans as the primary factors.
Citibank CEO Vikram Pandit, said the bank was on it’s way to improving, as the company has started to cut costs over the past year. “As we enter 2010, we are strongly capitalized, significantly more efficient, and are executing on a clear strategy that is focused on clients,” he said in a statement. On the credit side of things the bank is seeing improvements as well.
Credit losses fell to $7.1 billion during the quarter, down $800 million from the previous three-month period. Though it still needs to set aside $8.18 billion to cover unpaid loans, the amount was down 10 percent from the third quarter, and 36 percent from a year earlier. John Gerspach, Citigroup’s chief financial officer, reported that the number of mortgage and credit card loans that were newly delinquent, or between one and three months past due, had started to stabilize and even drop in some of its lending portfolios.
Surprisingly at mid day trading Citigroup (C) shares were slightly higher, up from when the 4Q announcement had been made. Later this week expect other big banks such as Bank of America (BAC), Wells Fargo (WFC), Morgan Stanley (MS) and Goldman Sachs (GS) to release their quarterlies.