Citigroup Reports $7.8B Loss In 4th Quarter

Press Release, AP Business Writer Stephen Bernard: Citigroup loses $7.8B in 4Q

“Citigroup Inc. became the latest bank to take a cautious view of consumers’ credit problems, reporting a $7.77 billion fourth-quarter loss due to failed loans and the costs of repaying $20 billion in government bailout money.”

“The bank’s loss after accounting for payment of preferred dividends came to almost $7.77 billion, or 33 cents per share. That compared with a loss of $18.16 billion, or $3.40 a share, a year earlier. In the third quarter of 2009, it lost $3.24 billion after paying dividends. The latest results were in line with analysts’ expectations, according to Thomson Reuters.”

“….But paying the government back also frees Citigroup of restrictions on how much it can pay its employees.”

“Gerspach said average compensation per employee, which includes salary, benefits and bonuses, in 2009 was about $90,000, about 1 percent lower than in 2008. In total, Citigroup spent $25 billion on compensation costs in 2009, down 20 percent from the year before. The average compensation per employee did not decline as fast because of the job cuts.”

Share on Facebook

Tags: Bank Failures, Banks, Citi, economic progress, stimulus

This entry was posted on January 19, 2010 at January 19, 2010 and is filed under Banks. You can follow any responses to this entry through the RSS 2.0 feed.