Citigroup Q2 profit falls on losses from older assets
NEW YORK, July 16 – Citigroup Inc reported lower second-quarter profit today as the big banking group lost money on the sale of a stake in a Turkish bank and suffered from the drag of its troubled assets left over from the 2008 credit crisis.
Net income fell to US$2.9 billion (RM9.21 billion), or 95 cents per share, from US$3.34 billion, or US$1.09 a share, in the same quarter a year earlier, the company said.
The results included a US$424 million loss from the sale of a 10.1 per cent stake in Akbank TAS of Turkey and a US$219 million gain from changes in the market value of Citigroup debt and that of certain trading partners.
The Citi Holdings segment, made up of assets the bank intends to shed, lost US$920 million, compared with a loss of US$611 million a year earlier. The company said Citi Holdings now contains 10 per cent of total assets, down from 11 per cent three months ago.
“We had strong growth in both loans and deposits, showed resilience in our markets-facing businesses, and saw record revenues in Transaction Services,” Citigroup Chief Executive Vikram Pandit said in a statement.
Citigroup is the third largest US-based bank by assets. – Reuters