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Citigroup reports $5.1bn net loss in Q1

Citigroup has this morning reported a net loss of $5.1bn for Q1 2008.

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.”


B&B denies rights issue

Bradford & Bingley has denied reports that it was planning to raise hundreds of millions of pounds in a rights issue this week.

TFC sees 30% increase in business

TFC Homeloans, part of the Orbiter Group, has seen an increase of business of around 30% in the last month and its application volumes are now up nearly 90% since December 2007. TFC has also been boosted by an independent survey showing it is finding favour with brokers. Recent figures from NMG Financial Services Consulting’s […]


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