Citigroup has also cut 11,000 jobs this quarter, which about 3% of its staff, totaling 23,000 job cuts for the year.
These results are bound to bring down the US markets, and subsequently the Asian and European market. The BSE and NSE both closed down by 2.11%.
Results included $4.4 billion in net pre-tax write-downs in Securities and Banking, $4.9 billion in net credit losses, and a $3.9 billion net charge to increase loan loss reserves. The bank also said that it has slashed approximately 11,000 jobs in this quarter, totaling 23,000 job cuts this year. This is the fourth consequent loss that has been reported by Citigroup.
Citigroup, the biggest US bank by assets reported $2.8 billion (or $0.60 per share) losses in the third quarter, after getting hit by credit losses, reserves for bad loans and write-downs for mortgage-related securities. To add to this, Merrill Lynch also reported a net loss from continuing operations for the third quarter of 2008 of $5.2 billion, or $5.58 per diluted share.
"While our third quarter results reflect both a difficult environment as well as continued write-downs on our legacy assets, we are making excellent progress on the parts of our business we control, including expense reduction, headcount, and balance sheet and capital management. We expect these improvements will enable us to realize the full earnings power of our franchise as the economy stabilizes," said a hopeful Vikram Pandit, Chief Executive Officer of Citi, in a release.
Citigroup is also selling off some its businesses to strengthen its balance sheet. Earlier this year it sold off its German retail banking unit to France's Credit Mutuel for $7.7 billion. It has sold its captive BPO arm Citigroup Global Services (CGSL) for $505 million. It has also put Citicorp Finance on the block in India. Citicorp Finance has a $1 billion commercial vehicle & construction equipment loan portfolio and Citi expects to sell it for Rs 850 crore. There were also reports of Citi mulling a stake sale in HDFC bank.
These results are bound to bring down the US markets, and subsequently the Asian and European market. The BSE and NSE both closed down by 2.11%.
Results included $4.4 billion in net pre-tax write-downs in Securities and Banking, $4.9 billion in net credit losses, and a $3.9 billion net charge to increase loan loss reserves. The bank also said that it has slashed approximately 11,000 jobs in this quarter, totaling 23,000 job cuts this year. This is the fourth consequent loss that has been reported by Citigroup.
Citigroup, the biggest US bank by assets reported $2.8 billion (or $0.60 per share) losses in the third quarter, after getting hit by credit losses, reserves for bad loans and write-downs for mortgage-related securities. To add to this, Merrill Lynch also reported a net loss from continuing operations for the third quarter of 2008 of $5.2 billion, or $5.58 per diluted share.
"While our third quarter results reflect both a difficult environment as well as continued write-downs on our legacy assets, we are making excellent progress on the parts of our business we control, including expense reduction, headcount, and balance sheet and capital management. We expect these improvements will enable us to realize the full earnings power of our franchise as the economy stabilizes," said a hopeful Vikram Pandit, Chief Executive Officer of Citi, in a release.
Citigroup is also selling off some its businesses to strengthen its balance sheet. Earlier this year it sold off its German retail banking unit to France's Credit Mutuel for $7.7 billion. It has sold its captive BPO arm Citigroup Global Services (CGSL) for $505 million. It has also put Citicorp Finance on the block in India. Citicorp Finance has a $1 billion commercial vehicle & construction equipment loan portfolio and Citi expects to sell it for Rs 850 crore. There were also reports of Citi mulling a stake sale in HDFC bank.