Chillin' out till it needs to be funded
Citigroup Inc posted a first-quarter loss on Friday, reflecting a large amount of credit losses and the accounting for preferred stock.
The bank also said it planned to delay the proposed exchange of billions of dollars of preferred shares into common stock until the U.S. government completes its “stress tests” of large banks to gauge which might need more capital or aid.
Citigroups quarterly loss available to common shareholders was $966 million, or 18 cents per share, compared with a loss of $5.19 billion, or $1.03 a share, a year earlier. Revenue roughly doubled to $24.79 billion.
Analysts on average expected a loss of 30 cents per share on revenue of $21.73 billion, according to Reuters Estimates.
Excluding the impact of preferred stock, Citigroup said profit from continuing operations was $1.61 billion, vs. a $5.25 billion year-earlier loss.
Results included $10.3 billion of credit costs, up 76 percent, with a large portion of the increase stemming from credit cards. This included $7.3 billion of net credit losses, a $2.7 billion increase to loss reserves, and $332 million for other benefits and claims.
via <Citi losses in control> http://www.reuters.com/article/newsOne/idUSTRE53G25L20090417
zyakaira notes: Goldman Sachs profits earlier and its easy exit from TARP shows the way to the other hopefuls but billions each added to loss reserves are a good sign that a recovery can be expected in 2010. I wouldn’t lose any sleep over this one. JP Morgan added $2 billion in loss reserves and Citi close to $3 billion. I would say good investment and I just hope that all desks of citi worldwide have reported the losses there are to report