Citigroup Reports $7.6 billion Loss

Citigroup (C), the third largest bank holding company in the U.S. by total assets, and one of the harder hit banks in the wake of the financial meltdown, reported a fourth-quarter loss of $7.6 billion Tuesday.

On a per share basis, the fourth-quarter loss came in at 33 cents (in-line with the First Call consensus of ($0.33), which was narrower than the record loss of $17.3 billion, or $3.40 a share, on a y/y basis, New York-based Citigroup said today in a statement.

Excluding the $6.2 billion after-tax loss associated with TARP repayment and exiting the loss-sharing agreement, the fourth quarter net loss was $1.4 billion or $0.06 per share.

Citigroup CEO Vikram Pandit, who failed to restore the bank to profitability in his second full year in the top job, maintained Tuesday that much progress had been made 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.

The bank also highlighted some encouraging numbers within its massive loan portfolio:

  • Citigroup: “Fourth quarter net credit losses of $7.1 billion were down $0.8 billion from the prior quarter, marking the second consecutive quarter of improvement. Managed net credit losses were $10.0 billion, down from $11.0 billion in the prior quarter.
  • Citigroup Q4 revenues were $5.4 billion, or $15.5 billion excluding the loss on the repayment of TARP and exiting the loss-sharing agreement, down from $20.4 billion in the prior quarter which included a $1.4 billion gain from the extinguishment of debt associated with the exchange offers.
  • Citicorp fourth quarter revenues were $11.7 billion, down from $13.0 billion in the prior quarter. Managed revenues were $13.4 billion, down from $14.8 billion in the prior quarter. Excluding the impact of CVA in each quarter, managed revenues were down approximately 7% sequentially, due primarily to declines in S&B revenues.
  • Regional Consumer Banking revenues were $5.7 billion, up 1% sequentially. Managed revenues of $7.5 billion were flat with the prior quarter. Average deposits of $288 billion were up 5% sequentially, driven by growth in all regions. Average retail banking loans increased 4% sequentially to $80.6 billion, while Citi-branded cards average managed loans were up 1% sequentially to $114.2 billion.
  • Transaction Services 2009 net income was $3.7 billion, up 12% versus 2008 on revenues of $9.8 billion”.

Commenting on Citi’s financial results, John Gerspach, CFO of Citigroup, said: “We have made significant progress in 2009. While the environment continues to be challenging, we have a strong capital base and client franchise”.

Citigroup still owes the gov’t $25 billion under the TARP.

Shares of Citi rose 2 cents, or 0.02 percent, to $3.44 in midday trading.

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