Citigroup SPLIT after $8.29 bn loss in Q3

By CROW -

Citigroup Inc unveiled a broad restructuring plan designed to shed weaker businesses and troubled assets, and also reported an $8.29 billion fourth-quarter loss, its fifth straight quarterly loss.

The company also said on Friday that it anticipated more departures from its board, which is losing Robert Rubin as a director later this year. Nevertheless, Citigroup shares rose 8.6 per cent to $4.16 in premarket trading.

Citigroup's fourth-quarter loss equaled $8.29 billion, or $1.72 per share, and compared with a year-earlier loss of $9.8 billion, or $1.99 a share.

"I think people knew it was going to be bad, but I'm surprised it's this bad," said Matt McCormick, portfolio manager at Bahl & Gaynor Investment Counsel in Cincinnati.

The bank said it was splitting into two operating units, one of which will focus on universal banking, the other on brokerage and retail asset management, local consumer finance, and a pool of assets that require special management.

Revenue fell 13 per cent to $5.6 billion, reflecting weak capital markets. The company's global credit card business saw revenue decline 27 per cent on weakness in North America.
 
Consumer Banking revenues declined 22 per cent, driven by a 47 per cent drop in investment sales. And its institutional clients group, securities and banking revenues were negative $10.6 billion, mainly due to net losses and write-downs of $7.8 billion.

"Our results continued to be depressed by an unprecedented dislocation in capital markets and a weak economy," Chief Executive Vikram Pandit said.

Pandit further added that, "Today, we announced that we would separate the company, for management purposes, into two separate businesses -- Citicorp and Citi Holdings. We are setting out a clear roadmap to restore profitability".

Comments

Post a Comment

Popular posts from this blog

Adani Power (IPO)

By CROW -
Adani Power initial public offering (IPO) witnessed huge investor interest and was subscribed 6.86 times. The issue received bids for more than 170 crore shares as against the issue size of 30,16,52,031 shares, as per the data available on the NSE website . Qualified institutional investors have given strong response to the issue followed by non-institutional investors. Their portion subscribed 12.93 times and 2.2 times, respectively. Retail investors' portion subscribed just 0.5 times. Also read: Subscribe to Adani Power IPO: Experts The price band has been fixed between Rs 90 and Rs 100 per equity share. The minimum bid lot has been fixed at 65 equity shares by the company in consultation with the global coordinator and book running lead manager. The issue will close on July 31, 2009. The issue constitutes 13.84% of the post-issue paid-up equity share capital of the company. The issue includes a reservation of up to 8,000,000 equity shares for eligible employees. The iss...
Read more

Stock Buzz Jan 14th 2010

By CROW -
02:23 PM Thursday , 14 January It is a steady session for our market. Sensex is trading at 17,601, up 90 points and Nifty is at 5,264, up 30 points from the previous close. Source : IRIS 01:51 PM Thursday , 14 January Our market is seeing some turbulence and trending little lower. But the midcap out performance continues. Sensex is trading at 17,540, up 30 points and Nifty is at 5,246, up 12 points from the previous close. Source : IRIS 01:50 PM Thursday , 14 January The market is trading firm. Sensex is trading at 17,588, up 78 points and Nifty is at 5,262, up 28 points from the previous close. Source : IRIS 01:49 PM Thursday , 14 January At this hour the market has come off the morning`s high but still trading with gains. Asian markets are also looking firm. Sensex is trading at 17,569, up 59 points from its previous close, and Nifty is at 5,257, up 23 points. Source : IRIS 09:46 AM Thursday , 14 January The market opens on a reasonably strong note. Earlier, the ...
Read more

Trend watch: Industrial growth decelerates in July

By CROW -
The just released industrial growth numbers point to a slowdown in the economy. The Central Statistical Organization`s quick estimates of Index of Industrial Production (IIP) for the month of July 2007 fell far below the expectations. The general index stands at 252.2, which was 7.1% in July 2007 compared with 13.2%, a year ago. The cumulative growth for the period April-July 2007-08 witnessed a decline at 9.6% as against 11.1% over the corresponding period of the pervious year. The industrial production for the mining, manufacturing and electricity sectors grew 4.9%, 7.2% and 7.5% respectively in July`07. During the same period in 2006, these sectors posted growth of 5.1%, 14.3% and 8.9% respectively. The cumulative growth during April-July 2007-08 over the corresponding period of 2006-07 in the three sectors has been 3.1%, 10.3% and 8.1% respectively compared with 4%,12.3% and 6.1%, a year ago, which moved the overall growth in the general index to 9.6%. Higher interest rates adverse...
Read more