Citigroup posts $5.1 bn Q1 loss after massive writedown

April 18th, 2008 - 7:52 pm ICT by admin  

New York, April 18 (DPA) US banking major Citigroup reported Friday it sustained net losses of $5.11 billion in the first quarter of 2008 having to write down loans and bonds worth $12 billion in the subprime mortgage crisis. The first-quarter red ink compares with a profit of just over $5 billion in the same 2007 period and was somewhat higher than analysts’ projections, according to the Bloomberg financial agency.

The losses came on revenues of $13.2 billion. While this was down 48 percent from the first quarter of 2007, it was some $2 billion higher than projections given in a survey of analysts by Bloomberg.

Citigroup became the latest among major US financial institutions this week to report first-quarter problems in the further fallout from the mortgage crisis and US economic slump.

On Thursday, Merrill Lynch reported a net loss of $1.96 billion after nearly $7 billion in writedowns.

On Tuesday, Washington Mutural reported losing $1.1 billion in the quarter, while a day before that, Wachovia Corp posted a loss of $350 million.

JPMorgan Chase Wednesday reported net earnings of $2.37 billion, but this figure was down about one-half from the year-earlier results.

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