Citigroup posts $7.6bn Q4 loss

Citigroup posted a fourth-quarter loss of $7.6 billion (Dh27.8bn) after taking charges linked to repaying government funds.

The third-largest US bank said the loss amounted to 33 cents a share, compared with a loss of $17.3bn, or $3.40 a share, in the same quarter a year earlier. The loss matched analysts' average estimate. Citigroup shares were unchanged in premarket trading at $3.42.

The bank set aside $8.2bn in the quarter to cover bad loans and other losses, down 36 per cent from a year earlier. Citigroup is the second major US bank to report fourth-quarter results.

JPMorgan Chase posted a quarterly profit of $3.3bn last week, helped by rising fixed-income trading revenue, but suffered deep losses on US mortgage and credit card loans, which disappointed many investors.

Citigroup has been struggling to return to profitability in its main lending businesses after posting more than $100bn of credit losses and writedowns.

Although the bank posted a profit for 2009, $6.7bn came from selling a controlling stake in its Smith Barney business.

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