Citigroup posts $2.5 billion Q2 loss

18 July 2008

Citigroup has posted a second quarter loss of $2.5 billion falling 54 cents per share compared to 12 months ago.

However, analysts had expected average losses of 67 cents per share, according to estimates by Thompson Reuters' analysts.

Vikram Pandit, Citigroup chief executive, remarked that the bank was "encouraged" by its progress towards reversing its recent trend of write downs that saw $7.2 billion wiped off its balance sheet.

He said: "While there is still much to do, we are encouraged by our progress in delivering on our commitment to the re-engineering efforts.

"As part of our efforts to improve capital and balance sheet efficiency, we reduced legacy assets substantially during the quarter."

Write-downs included $3.5 billion for subprime mortgage-related exposures.

Citigroup's second-quarter performance is a reversal of the $6.14 billion profits during the same period in 2007.

The bank also cut around 6,000 jobs during the 2008 period.

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