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Citigroup Inc. (Citigroup) is a diversified global financial services holding company whose businesses provide a range of financial services to consumer and corporate customers. The Company is a bank holding company. Its segments include Global Consumer Group, Corporate and Investment Banking (CIB), Global Wealth Management and Alternative Investments (AI)./span>
Latest News
Citigroup has announced that it will reduce staffing by another 50,000 to arond 300,000 employees. At the peak, at the end of the fourth quarter in 2007, Citigroup employed approximately 375,000 staff. It has already reduced staff by 23,000 this year. The announcement was made at a "town hall" meeting. No information was given on the presentation slides as to where the reductions would be made. The presentation stated that they would be achieved in the near term. The presentation also highlighted that expenses would be reduced by 20%.Click here to see the Cititabank presentation Readmore | Citigroup has reported its 4th quarterly loss in a row. New York, NY – Citigroup Inc. (NYSE: C) today reported a net loss for the 2008 third quarter of $2.8 billion, or $0.60 per share, based on 5,342 million shares outstanding. Results included $4.4 billion in net pre-tax write-downs in Securities and Banking (See Schedule B on page 10), $4.9 billion in net credit losses, and a $3.9 billion net charge to increase loan loss reserves.Highlights Net interest revenue up 13% and net interest margin up 79 basis points versus the third quarter 2007. Lower write-downs in Securities and Banking for... Readmore | New York – Citi (NYSE: C) today announced it has reached an agreement–in-principle to acquire all of the banking subsidiaries of Wachovia Corporation (NYSE: WB), creating the largest U.S. bank by total deposits. Wachovia will remain a public company and retain its asset management, retail brokerage, and certain select parts of its wealth management businesses, including the Evergreen and Wachovia Securities franchises. Going forward, Wachovia expects to have adequate capital to support its remaining businesses, an appropriate allocation of tangible equity, and certain tax assets that will be recognized immediately.Under the terms of the agreement-in-principle, Citi will pay Wachovia approximately... Readmore | Citigroup has agreed to pay departing executive Michael Klein about $42.6 million. Klein, a former investment banking head, is receiving more than the bank awarded Charles Prince, the former Citi chairman and chief executive, who retired in November as the bank prepared to post billions of dollars of write-downs. The payment is still likely to fuel political and public concern over the scale of sums paid out despite huge losses incurred by the banks. But Klein's payout comes at a cost. Under the agreement, he cannot work for, advise, or solicit clients for 12 major commercial and investment... Readmore | New York, NY – Citigroup Inc. (NYSE: C) today reported a net loss for the 2008 second quarter of $2.5 billion, or $0.54 per share, based on 5,287 million shares outstanding.(1) Solid results in the core franchise were offset by write-downs and credit costs. Results include $7.2 billion in pre-tax write-downs in Securities and Banking. Additionally, credit costs increased $4.5 billion, mainly driven by Consumer Banking in North America and Global Cards.Second Quarter Highlights Results improved substantially versus first quarter 2008 due to lower write-downs and good performance in the core franchise. Total assets declined by $99 billion since first... Readmore | | Show options |
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Citigroup Recent Events
83% Fall in Full Year Net Income
Job Losses
Dividend Cut
Investor ConcernCitigroup announced that the 2007 Full Year Net Income was US$ 3.6 billion a fall of 83% from the previous year’s US$ 21.5 billion. The results included US$ 18.1 billion in pre-tax write-downs and credit costs on sub-prime related direct exposures and a US$ 4.1 billion increase in credit costs primarily on US consumer loans. The Group announced 17,000 job cuts globally in April 2007. In November 2007 it announced its intention for a further 4,200 reduction in staff. Following his appointment as the new CEO, Vikram Pandit has announced that he and his management team will take a thorough review of its businesses to establish if it is correctly sized. They will also focus on productivity enhancements. Already, they have started to reverse the US branch expansion plan. They will also review the risk management in the Group. Although in December 2007 the Board confirmed that it was going to maintain the dividend, alongside the Fourth Quarter and Full Year 2007 Results announcement it was confirmed that the dividend would be cut by 41%. Shareholders have also seen a 50% fall in the share price over the last 12 months and are being further diluted by the additional capital raising of US4 14.5 billion also announced with the annual results. Both investors and employees, many of whom also own stock, are distressed by the results and the subsequent consequences. There is still considerable comment regarding the estimated final compensation payments of the recently resigned Chairman and CEO, Chuck Prince, estimated to be around US$ 40 million including benefits he will retain for up to five years.
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