Citigroup posts $8.29 bn Q4 loss, plans biz split

Ailing US banking giant Citigroup today reported a fourth-quarter net loss of $8.29 billion or $1.72 per share, wider than market expectations.

The bank said that $5.6 billion in revenues were pressured by write-downs and losses, including a $6.1 billion in net credit losses and $6.0 billion in net loan loss reserve build.

For the full year 2008, Citigroup posted a net loss of $18.72 billion, or $3.88 per share.

The embattled bank said today it would split the company into two separate businesses in a bid to restore profitability after posting a larger than expected fourth-quarter loss.

"Today, we announced that we would separate the company, for management purposes, into two separate businesses -- Citicorp and Citi Holdings," said Vikram Pandit, Citi chief executive.

 

"We are setting out a clear roadmap to restore profitability," he added.