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| Version 2 | Version 3 |
|---|---|
| Citigroup posts another big loss | Citigroup posts another big loss |
| (about 8 hours later) | |
| Citigroup has reported another big loss, although it lost less money than had been expected. | Citigroup has reported another big loss, although it lost less money than had been expected. |
| The biggest US bank by assets lost $2.5bn (£1.3bn) in the three months to the end of June, weighed down by another $11.7bn of write-downs. | The biggest US bank by assets lost $2.5bn (£1.3bn) in the three months to the end of June, weighed down by another $11.7bn of write-downs. |
| Citigroup said it had cut 11,000 jobs in the first six months of the year and planned to continue at the same rate. | Citigroup said it had cut 11,000 jobs in the first six months of the year and planned to continue at the same rate. |
| The company's shares rose 7.7% to close at $19.35, following the smaller-than-expected losses. | |
| It is Citigroup's third consecutive quarter of losses, following shortfalls of $5.11bn and $9.83bn. | It is Citigroup's third consecutive quarter of losses, following shortfalls of $5.11bn and $9.83bn. |
| Credit losses | Credit losses |
| The losses spring from problems in the credit markets because of uncertainty about the value of mortgage-backed debt issued by US banks. | The losses spring from problems in the credit markets because of uncertainty about the value of mortgage-backed debt issued by US banks. |
| It has left banks worldwide reluctant to lend money to each other, because they are uncertain about whether the other banks are creditworthy and whether they will need the money themselves. | It has left banks worldwide reluctant to lend money to each other, because they are uncertain about whether the other banks are creditworthy and whether they will need the money themselves. |
| The credit market turmoil has forced the industry to axe thousands of jobs as it attempts to reduce costs, with more cutbacks expected in the year ahead. | The credit market turmoil has forced the industry to axe thousands of jobs as it attempts to reduce costs, with more cutbacks expected in the year ahead. |
| Chief executive Vikram Pandit said: "While there is still much to do, we are encouraged by our progress." | Chief executive Vikram Pandit said: "While there is still much to do, we are encouraged by our progress." |
| An element of bad news in the three-month results is that Citigroup's credit costs have jumped to $7.2bn, as more of its own customers are defaulting on their loans. | An element of bad news in the three-month results is that Citigroup's credit costs have jumped to $7.2bn, as more of its own customers are defaulting on their loans. |
| That means that while the losses from mortgage-backed debt may be slowing, the losses from Citigroup's own mortgages, car loans and credit cards are growing. | That means that while the losses from mortgage-backed debt may be slowing, the losses from Citigroup's own mortgages, car loans and credit cards are growing. |
| But some analysts believe there could be light at the end of the tunnel. | But some analysts believe there could be light at the end of the tunnel. |
| "While several global or major national banks delivered lousy earnings, the mortgage or credit market related write-offs weren't nearly as bad as expected and appear to be lessening," said Fred Dickson, an analyst at DA Davidson & Co. | "While several global or major national banks delivered lousy earnings, the mortgage or credit market related write-offs weren't nearly as bad as expected and appear to be lessening," said Fred Dickson, an analyst at DA Davidson & Co. |