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Citigroup’s shares tumbled– $10 billion loss

2008-01-16 23:26:03 (GMT) (Caymanmama.com - Banks & Banking News)

New York

Citigroup Inc. on Tuesday, stunned the Wall Street reporting a quarterly loss of $10 billion that is the worst ever news in its storied history.

The financial giant, Citigroup also announced that a write-down related to sourced market investments of around $18.1 billion and major initiatives of cost-cutting including 41 percent to its plan and dividends for reducing its payroll.

Wall Street got disappointment to learn the news that the shares of Citigroup Inc. tumbled on the New York Stock Exchange in afternoon trade by 7 percent.

The company suffered the worst quarterly loss ever that is recorded in its 196 year history of its predecessors and the firm. The loss that is being recorded by the company is an eye-popping net loss of about $9.83 billion or a share of $1.99 in the fourth quarter. This is the first quarterly loss that has been marked since Travelers Group and Citicorp merged in 1998 to form Citigroup.

Citigroup, only a year ago reported profit of around 1.03 per share or $5.13 billion and its top line took a big hit. The revenue generated by the company was $7.2 billion for quarter and a year earlier it was down 70 percent from $23.8 billion.

The results be much worst than it was forecasted, as analysts expected the company to account a loss of $1 a share on revenue of $10.64 billion, in accordance with the analysts surveyed by earnings tracker Thompson Financial.

In a conference on Tuesday morning, Vikram Pandit, CEO Citigroup said “It’s very clear that Citigroup’s fourth-quarter results are unacceptable”.



NewsReporter · Filed Under Banks & Banking 

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