Citigroup Inc., parent of 30 Connecticut bank branches, suffered its fourth straight quarterly loss due to credit-related missteps and cut another 11,000 jobs.
The New York-based bank said today that it lost $2.8 billion, or 60 cents per share, in the third quarter, compared with a profit of $2.2 billion, or 44 cents per share, a year ago. That deficit for the June-to-September period brings Citi’s total losses over the past 12 months to $20.2 billion.
The shortfall for the quarter was narrower than anticipated. Analysts polled by Thomson Reuters expected a loss of 70 cents per share.
But the results were hardly reassuring. Citi wrote down $4.4 billion in investments, recorded $4.9 billion in credit losses, and took a $3.9 billion charge to boost reserves. The bank has written down the value of its investments in souring mortgages and other debt by more than $50 billion since this time last year.
Citi not only eliminated 11,000 jobs during the third quarter — bringing its total headcount reduction so far this year to 23,000 — but it also shed $50 billion in assets. (AP)
