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NEW YORK - CITIGROUP, the largest US bank, on Friday posted its second straight quarterly loss, hurt by more than US$15 billion (S$20 billion) in write-downs and increased reserves for credit losses.
The loss totaled US$5.11 billion, or US$1.02 per share, and compared with a year-earlier profit of US$5.01 billion, or US$1.01 per share. Revenue fell 48 per cent to US$13.22 billion.
Analysts on average expected a loss of US$0.96 per share on revenue of US$14.35 billion, according to Reuters Estimates.
Despite the loss, Citigroup shares rose US$1.43, or 6 per cent, to US$25.46 in premarket trading.
Chief Executive Vikram Pandit is trying to focus on stronger businesses after years of underinvestment and questionable risk management left Citigroup bearing the full brunt of the credit market crisis. The bank has slashed its dividend and raised more than US$30 billion in capital.
Results included US$6 billion in write-downs and credit costs tied to subprime mortgages, US$3.1 billion in write-downs for loans to fund corporate buyouts, and a US$3.1 billion increase in credit costs related to consumer lending.
The company also wrote down US$1.5 billion of its exposure to bond insurers and US$1.5 billion for auction-rate securities.
'Results reflect the continuation of the unprecedented market and credit environment and its impact on our historical risk positions,' Mr Pandit said in a statement.
Through Thursday, the company's shares had fallen 18 per cent this year, compared with a 9 per cent drop in the Philadelphia KBW Bank Index. The stock's 52-week high is US$55.53, set last May 23.
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