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NEW YORK - CITIGROUP Inc , the largest US bank, on Friday posted a smaller-than-expected $2.5 billion (S$3.38 billion) second-quarter loss, despite billions of dollars of write-downs and credit losses tied to deteriorating capital markets and the slumping economy.
The net loss totaled 54 cents per share and compared with a year-earlier profit of $6.23 billion, or $1.24 per share.
Citigroup's loss from continuing operations was $2.22 billion, or 49 cents per share, while revenue declined 29 per cent to $18.65 billion.
Analysts on average expected a loss of 67 cents per share on revenue of $17.44 billion, according to Reuters Estimates.
Citigroup shares rose 4.4 per cent to $18.74 in pre-market electronic trading.
The New York-based bank's securities and banking unit took $7.2 billion of write-downs, including $3.5 billion for subprime mortgage-related exposures, and $2.4 billion related to bond insurers.
Citigroup said it also increased credit costs by $4.5 billion, largely tied to US consumer banking operations and its worldwide credit card business.
Chief Executive Vikram Pandit is trying to focus on stronger businesses and slash exposure to risky assets after years of poor expense and risk management left Citigroup bearing the full brunt of the global credit market crisis.
The bank said it eliminated 6,000 jobs during the quarter, and about 11,000 in the first half of the year.
'While there is still much to do, we are encouraged by our progress,' Mr Pandit said in a statement.
Through Thursday, Citigroup shares had fallen 39 per cent this year, compared with a 30 per cent drop in the KBW Bank Index . -- REUTERS
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