Citigroup set 'for sixth consecutive quarterly loss'

8 October 2009

Citigroup is expected to post a quarterly loss for the sixth time in two years, according to banking sector experts.

According to a Bloomberg survey of industry analysts, the company made a further $2.58 billion loss during the past three months.

But Goldman Sachs and JPMorgan Chase are expected to post the financial industry's biggest third-quarter profit gains.

The two companies, which have already paid off their bailout funds, are both expected to report profits in excess of $2 billion.

Matt McCormick, a banking industry analyst at Bahl and Gaynor, told Bloomberg: "We're seeing a bifurcation of the banking industry between the haves and the have-nots."

Citigroup's value has fallen by more than 30 per cent on the New York Stock Exchange in 2009 while Goldman Sachs shares have climbed 126 per cent.

Earlier in the week it was reported that Goldman Sachs will earn $1 billion if CIT Group, the commercial lender which was rescued by Goldman Sachs in a $3 billion deal last year, goes bankrupt.

By Gary Cooper

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