Citigroup has announced it recorded a $9.83bn (£5bn) loss in Q4 2007, attributed to continued sub-prime related exposure.
The results reflect an $18.1bn sub-prime write-down and $4.1bn consumer credit cost increase.
New Citi CEO Vikram Pandit labelled the Q4 result “clearly unacceptable”.
“Our poor performance was driven primarily by two factors – significant write-downs and losses on our sub-prime direct exposures in fixed income markets, and a large increase in credit costs in our US consumer loan portfolio,” he says.
Pantit vowed to turn the results around, announcing the group was in the midst of a thorough business review.
"We have begun to take actions to ensure that Citi is well positioned to compete and win across our franchises while effectively keeping a tight control over our business risks,” he says.
“We are taking several steps to strengthen our capital base, including today's announcement regarding an investment in Citi by several long-term sophisticated investors, our dividend reset, and our continued focus on divesting non-core assets and businesses.”
Citi announced it will acquire $12.5bn capital through the sale of convertible preferred securities, which includes a $6.88bn investment from the Government of Singapore Investment Corporation.
To comment on this story, contact:
0207 034 2681
Call for 'preventative measures'
700 potential claimants
Know suitability requirements
As head of distribution
‘Misconduct is misconduct’