Rediff.com  » Business » Citi posts Q3 loss of $2.8 bn, slashes 11,000 jobs

Citi posts Q3 loss of $2.8 bn, slashes 11,000 jobs

Source: PTI
October 16, 2008 18:39 IST
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Financial services behemoth Citigroup on Thursday reported a net loss of $2.8 billion for the third quarter ended September, primarily on credit-related losses and also slashed around 11,000 jobs.

The American giant led by India-origin chief executive Vikram Pandit clocked a net profit of $2.2 billion for the same period a year ago.

For the third quarter under review, Citi incurred net pre-tax write-downs in securities and banking totalling $4.4 billion, net credit losses to the tune of $4.9 billion and another $3.9 billion as net charge to increase loan loss reserves.

In a statement, the financial services major said the headcount has been reduced by about 11,000 since the second quarter of 2008 and by nearly 23,000 in the first nine months of this year.

Citi's revenues for the third quarter stood at $16.7 billion, down 23 per cent as compared to the corresponding period a year ago. The decline was driven by $4.4 billion in net write-downs in securities and banking and lower securitisation results in North America Cards, among others.

The company also incurred a $612 million-dollar write-down related to the auction rates securities settlement announced in August this year but was partially offset by a $347 million-dollar pre-tax gain on the sale of CitiStreet.

Citi pointed that revenues across all businesses reflect the impact of a difficult economic environment and weak capital markets.

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