AGL 39.58 Decreased By ▼ -0.42 (-1.05%)
AIRLINK 129.20 Decreased By ▼ -2.02 (-1.54%)
BOP 6.75 Decreased By ▼ -0.06 (-0.88%)
CNERGY 4.62 Decreased By ▼ -0.09 (-1.91%)
DCL 8.40 Decreased By ▼ -0.04 (-0.47%)
DFML 41.00 Decreased By ▼ -0.47 (-1.13%)
DGKC 81.40 Decreased By ▼ -0.69 (-0.84%)
FCCL 32.70 Decreased By ▼ -0.40 (-1.21%)
FFBL 72.10 Decreased By ▼ -0.77 (-1.06%)
FFL 12.33 Increased By ▲ 0.07 (0.57%)
HUBC 110.50 Decreased By ▼ -0.24 (-0.22%)
HUMNL 14.40 Decreased By ▼ -0.11 (-0.76%)
KEL 5.14 Decreased By ▼ -0.05 (-0.96%)
KOSM 7.57 Decreased By ▼ -0.04 (-0.53%)
MLCF 38.70 Decreased By ▼ -0.20 (-0.51%)
NBP 63.01 Decreased By ▼ -1.00 (-1.56%)
OGDC 189.97 Decreased By ▼ -2.85 (-1.48%)
PAEL 25.34 Decreased By ▼ -0.34 (-1.32%)
PIBTL 7.32 Decreased By ▼ -0.02 (-0.27%)
PPL 150.80 Decreased By ▼ -3.27 (-2.12%)
PRL 25.55 Decreased By ▼ -0.28 (-1.08%)
PTC 17.51 Decreased By ▼ -0.30 (-1.68%)
SEARL 81.00 Decreased By ▼ -1.30 (-1.58%)
TELE 7.70 Decreased By ▼ -0.06 (-0.77%)
TOMCL 32.87 Decreased By ▼ -0.59 (-1.76%)
TPLP 8.35 Decreased By ▼ -0.14 (-1.65%)
TREET 16.60 Decreased By ▼ -0.02 (-0.12%)
TRG 56.88 Decreased By ▼ -0.52 (-0.91%)
UNITY 27.80 Increased By ▲ 0.29 (1.05%)
WTL 1.36 Decreased By ▼ -0.01 (-0.73%)
BR100 10,407 Decreased By -97.2 (-0.92%)
BR30 30,849 Decreased By -377.8 (-1.21%)
KSE100 97,538 Decreased By -541.6 (-0.55%)
KSE30 30,339 Decreased By -220 (-0.72%)

Citigroup Inc, the largest US bank, said on October 15 that third-quarter profit fell 57 percent, hurt by losses and writedowns for subprime and leveraged loans, fixed-income trading and weakness in its consumer business. Net income fell to $2.38 billion, or 47 cents per share, from $5.51 billion, or $1.10, a year earlier.
Revenue rose 6 percent to $22.66 billion, while operating expenses increased 22 percent to $14.56 billion. Analysts on average expected profit of 43 cents per share on revenue of $20.81 billion, according to Reuters Estimates.
Results included pre-tax writedowns of $1.35 billion for leveraged loans, $1.56 billion for subprime mortgages, and $636 million from fixed income trading. They also included a $729 million pre-tax gain from the sale of shares in Brazilian credit card transaction processor Redecard SA.
Meanwhile, credit costs increased $2.98 billion, including a $780 million increase in net credit losses and a $2.24 billion charge to increase reserves for bad loans.
Chief Executive Charles Prince called performance "well below our expectations." Citigroup had on October 1 projected a 60 percent drop in quarterly earnings. The quarter marked the latest setback for Prince, who is trying to boost a stock that has risen only 5 percent since he took the helm just over four years ago.
Citigroup shares closed Friday at $47.87 on the New York Stock Exchange. They have fallen 14 percent this year, while the Philadelphia KBW Bank Index is down 8 percent.

Copyright Reuters, 2007

Comments

Comments are closed.