A quarterly trading update from the bank, the parent company of Future Mortgages, shows it suffered pre-tax write-downs of $6bn due to sub-prime-related exposure on its income and assets.
Vikram Pandit, chief executive officer of Citigroup, says: “Our financial results reflect the continuation of the unprecedented market and credit environment and its impact on our historical risk positions.
“During the first quarter, valuations of our sub-prime related exposures in fixed income markets and leveraged finance assets have further declined and credit costs in our consumer lending businesses have increased.”
He adds: “Despite the negative factors in the broader markets, we continue to see strong momentum throughout the organisation with robust volumes in many of our products and regions.”
Pandit says the group has taken decisive and significant actions to strengthen its balance sheet, including over $30bn of capital raised during December and January.
He says the company continues to enhance its risk management processes, capital productivity and expense containment, as well as its ability to deliver innovative products that meet clients’ specific needs.
He adds: “To achieve this, we recently reorganised the businesses along regional and product lines to bring us closer to our clients.”