This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8004106.stm
The article has changed 7 times. There is an RSS feed of changes available.
| Version 5 | Version 6 |
|---|---|
| Citigroup results beat forecasts | Citigroup results beat forecasts |
| (about 2 hours later) | |
| Citigroup has reported its first quarterly net profit in nearly two years, the latest US bank to see an improvement in its performance. | Citigroup has reported its first quarterly net profit in nearly two years, the latest US bank to see an improvement in its performance. |
| It made a profit of $1.6bn (£1.1bn) compared with a loss of $5.1bn a year earlier. Revenues rose 99% to $24.8bn. | It made a profit of $1.6bn (£1.1bn) compared with a loss of $5.1bn a year earlier. Revenues rose 99% to $24.8bn. |
| However, once dividend payments to preferred shareholders were taken into account, it suffered a near-$1bn loss. | However, once dividend payments to preferred shareholders were taken into account, it suffered a near-$1bn loss. |
| Shares in Citigroup initially rose, before falling into negative territory, closing 9% lower at $3.65 in New York. | |
| The news, together with better than expected results from conglomerate General Electric, boosted markets as Wall Street's winning streak extended to a sixth week. | |
| Among banks, shares in Bank of America, due to post its quarterly results on Monday, gained 2.5%. | |
| "We had our best overall quarter since the second quarter of 2007," chief executive Vikram Pandit said. | "We had our best overall quarter since the second quarter of 2007," chief executive Vikram Pandit said. |
| 'Tentative hopes' | |
| Citigroup made a pre-arranged $2.7bn dividend payment to preferred shareholders, and said it had made a $7.3bn credit loss from bad loans. | Citigroup made a pre-arranged $2.7bn dividend payment to preferred shareholders, and said it had made a $7.3bn credit loss from bad loans. |
| However, it gained from an accounting rule that allowed the bank to post a one-time gain of $2.5bn. | However, it gained from an accounting rule that allowed the bank to post a one-time gain of $2.5bn. |
| Even the strongest banks have admitted to a few weak spots Karen Nye, BBC business reporter, New York Green shoots don't mean recovery | Even the strongest banks have admitted to a few weak spots Karen Nye, BBC business reporter, New York Green shoots don't mean recovery |
| The bank also said it had seen an improvement in trading activity and it had cut costs. | The bank also said it had seen an improvement in trading activity and it had cut costs. |
| Citi's results came hot on the heels of positive earnings reports from Wells Fargo, Goldman Sachs and JP Morgan. | Citi's results came hot on the heels of positive earnings reports from Wells Fargo, Goldman Sachs and JP Morgan. |
| "Of course the fact that all of these have had such a strong first quarter has led to some tentative hopes that perhaps the banking sector crisis is bottoming," said Richard Hunter, head of UK equities at Hargreaves Lansdown. | "Of course the fact that all of these have had such a strong first quarter has led to some tentative hopes that perhaps the banking sector crisis is bottoming," said Richard Hunter, head of UK equities at Hargreaves Lansdown. |
| Challenges remain | Challenges remain |
| Although Citi reported a profit, its losses in credit cards and consumer loans both increased sharply, the BBC's Karen Nye in New York pointed out. | Although Citi reported a profit, its losses in credit cards and consumer loans both increased sharply, the BBC's Karen Nye in New York pointed out. |
| "Even the strongest banks have admitted to a few weak spots," she added. | "Even the strongest banks have admitted to a few weak spots," she added. |
| Citigroup has received $45bn in government aid from the Troubled Asset Relief Program (Tarp). | Citigroup has received $45bn in government aid from the Troubled Asset Relief Program (Tarp). |
| The bank has also cut the size of its workforce to 309,000 people from 374,000 at its peak. | The bank has also cut the size of its workforce to 309,000 people from 374,000 at its peak. |
| "It was slightly better than anticipated, but we probably underestimated how much government support would be a wind at their back," said Michael Holland, founder of Holland & Co. | "It was slightly better than anticipated, but we probably underestimated how much government support would be a wind at their back," said Michael Holland, founder of Holland & Co. |
| But Citi's problems are not over yet, he added. | But Citi's problems are not over yet, he added. |
| "There's no doubt the challenges are still enormous for Citigroup." | "There's no doubt the challenges are still enormous for Citigroup." |