FOR IMMEDIATE RELEASE
Citigroup Inc. (NYSE: C)
July 18, 2008
 
Citi Reports Second Quarter Net Loss of $2.2 Billion, Loss Per Share of $0.49, from Continuing Operations
 
Net Loss of $2.5 Billion, Loss Per Share of $0.54, Primarily Due to Fixed Income Write-Downs And Higher Consumer Credit Costs In North America
 
Substantial Sequential Improvement Driven by Lower Write-Downs and Strength of Core Franchise
 
Progress on Near-Term Goals, Including Year-to-Date Headcount Reductions, Lower Expenses for the Second Consecutive Quarter, and Reduction in Legacy Assets
 
Strengthened Capital and Loan Loss Reserves

New York, NY – Citigroup Inc. (NYSE: C) today reported a net loss for the 2008 second quarter of $2.5 billion, or $0.54 per share, based on 5,287 million shares outstanding.(1) Solid results in the core franchise were offset by write-downs and credit costs. Results include $7.2 billion in pre-tax write-downs in Securities and Banking (See Schedule C on page 10). Additionally, credit costs increased $4.5 billion, mainly driven by Consumer Banking in North America and Global Cards.
 
Second Quarter Highlights
  • Results improved substantially versus first quarter 2008 due to lower write-downs and good performance in the core franchise.
  • Total assets declined by $99 billion since first quarter 2008; approximately two-thirds from legacy assets.
  • Sale of non-strategic businesses on track; announced CitiCapital, Diners Club International and CitiStreet transactions.
  • Capital position improved as Tier 1 Capital ratio increased to 8.7%; total allowance for loans, leases and unfunded lending commitments increased to $22 billion.
  • Re-engineering efforts resulted in sequential decline in headcount and expenses.
  • Headcount reduced by approximately 6,000 in the second quarter and approximately 11,000 in the first half of 2008.
  • Net interest margin expanded 34 basis points versus the first quarter 2008, to 3.18%.
  • Talent enhanced by strong new hires.