Citigroup 'may be earning $20bn a year by end of 2012'

11 March 2010

Citigroup may be earning as much as $20 billion a year from its core business by the end of 2012, according to a prediction from the bank's chief executive officer Vikram Pandit.

Mr Pandit is set to use an upcoming speech to investors to predict that Citigroup can earn a yearly return of 1.25 per cent on its assets, reports the Financial Times.

Citigroup's asset level stood at more than $1,300 billion at the end of 2009, with the bank estimating this will grow by around five per cent a year.

Based on these figures, Citigroup may surpass the $20 billion mark in 2012 as it seeks to increase its global presence.

"Clients look to us as being the financial conduit to the world," Mr Pandit has said. "We want to be a global bank for institutions and individuals."

Earlier this year, Citigroup reported losses of $7.6 billion for the final quarter of 2009 – with $6.2 billion of the deficit attributed to the bank's repayment of its bailout funding.

By Gary Cooper

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