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| Citigroup's $9.8bn sub-prime loss | |
| (10 minutes later) | |
| US banking giant Citigroup has reported a $9.83bn (£5bn) net loss for the last three months of 2007. | US banking giant Citigroup has reported a $9.83bn (£5bn) net loss for the last three months of 2007. |
| Chief executive Vikram Pandit said the loss had been caused by a $18.1bn exposure to bad mortgage debt and was "clearly unacceptable". | Chief executive Vikram Pandit said the loss had been caused by a $18.1bn exposure to bad mortgage debt and was "clearly unacceptable". |
| The company, the largest banking group in the US, said its revenues for the fourth quarter were down 70% from a year earlier to $7.2bn. | |
| Mr Pandit has pledged to turn around Citigroup's fortunes. | Mr Pandit has pledged to turn around Citigroup's fortunes. |
| It was also announced that Citigroup is going to get a cash injection of $6.88bn from Singapore government investment agency GIC. | It was also announced that Citigroup is going to get a cash injection of $6.88bn from Singapore government investment agency GIC. |
| This follows a similar $7.5bn investment in Citigroup from another government agency, the Abu Dhabi Investment Authority, last November. | This follows a similar $7.5bn investment in Citigroup from another government agency, the Abu Dhabi Investment Authority, last November. |
| 'Tight control' | 'Tight control' |
| Mr Pandit only took up the top job at Citigroup last month, following the departure of his predecessor Charles Prince. | Mr Pandit only took up the top job at Citigroup last month, following the departure of his predecessor Charles Prince. |
| CITIGROUP Citibank was founded in 1812 in New YorkIt has 200 million customer accounts in 100 countriesMore than 300,000 employees$2.4 trillion in assets Sources: Citigroup, Reuters | CITIGROUP Citibank was founded in 1812 in New YorkIt has 200 million customer accounts in 100 countriesMore than 300,000 employees$2.4 trillion in assets Sources: Citigroup, Reuters |
| Mr Prince resigned in November after the full extent of Citigroup's sub-prime mortgage losses began to emerge. | Mr Prince resigned in November after the full extent of Citigroup's sub-prime mortgage losses began to emerge. |
| "We have begun to take actions to ensure that Citi is well positioned to compete and win across our franchises while effectively keeping a tight control over our business risks," said Mr Pandit. | "We have begun to take actions to ensure that Citi is well positioned to compete and win across our franchises while effectively keeping a tight control over our business risks," said Mr Pandit. |
| Analysts generally welcomed the results, as the $18.1bn bad debt write down was less than market expectations of $20bn. | Analysts generally welcomed the results, as the $18.1bn bad debt write down was less than market expectations of $20bn. |
| MAIN SUB-PRIME LOSSES SO FAR Citigroup: $18bn UBS: $13.5bn Morgan Stanley $9.4bn Merrill Lynch: $8bn HSBC: $3.4bnBear Stearns: $3.2bn Deutsche Bank: $3.2bn Bank of America: $3bnBarclays: $2.6bn Royal Bank of Scotland: $2.6bn Freddie Mac: $2bnCredit Suisse: $1bn Wachovia: $1.1bn IKB: $2.6bnSource: Company reports Timeline: How the sub-prime crisis unfolded | MAIN SUB-PRIME LOSSES SO FAR Citigroup: $18bn UBS: $13.5bn Morgan Stanley $9.4bn Merrill Lynch: $8bn HSBC: $3.4bnBear Stearns: $3.2bn Deutsche Bank: $3.2bn Bank of America: $3bnBarclays: $2.6bn Royal Bank of Scotland: $2.6bn Freddie Mac: $2bnCredit Suisse: $1bn Wachovia: $1.1bn IKB: $2.6bnSource: Company reports Timeline: How the sub-prime crisis unfolded |
| They also welcomed the fact Citigroup announced it would still be paying a dividend, although this was reduced to 32 cents per share from 54 cents. | They also welcomed the fact Citigroup announced it would still be paying a dividend, although this was reduced to 32 cents per share from 54 cents. |
| "If you maintain dividend and reinforce your capital base, and you take a write-down that is slightly less than expected, all in all, it's decent," said Edmund Shing, strategist at BNP Paribas. | "If you maintain dividend and reinforce your capital base, and you take a write-down that is slightly less than expected, all in all, it's decent," said Edmund Shing, strategist at BNP Paribas. |
| Despite press reports that Citigroup would announce more than 20,000 job losses, none have so far been revealed. | Despite press reports that Citigroup would announce more than 20,000 job losses, none have so far been revealed. |