Citigroup sees return to profit

19 January 2011

Citigroup saw a return to profit during the fourth quarter of 2010 for the first time since before the start of the global credit crisis.

Financial figures published by the bank revealed that it recorded a profit of $1.3 billion or $0.04 per share for the last quarter of last year when compared with a loss of $7.6 billion, or $0.33 per share in the same period the previous year.

Citigroup posted a total year profit of $10.6 billion or $0.35 per share when compared with a loss of $1.6 billion, or $0.80 per share for the previous year.

Vikram Pandit, chief executive officer at Citigroup, said: “2010 was a year full of milestones and was critical for the turnaround of this institution.

“Our goal was to achieve consistent profitability and I am very pleased that with our fourth consecutive profitable quarter, we earned $10.6 billion for the year.”

Further figures showed that Citigroup’s provision for credit losses fell by a half to $26 billion.

Although the results for the both the quarter and the year both showed that the bank had improved, analysts predicted a better performance - and as such Citigroup’s share price dropped by four per cent on Wall Street following the announcement.

By Jim Ottewill

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