Citigroup (NYSE: C) reported Tuesday that the bank suffered a $7.77 billion loss in its fiscal fourth-quarter due to due to failed loans and the costs of repaying government bailout money, according to Associated Press.
Citigroup set aside $8.18 billion to cover unpaid loans, which was down 10 percent from the third quarter, and 36 percent from a year earlier.
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The bank, which received $45 billion in government bailout money, repaid $20 billion during the fourth quarter and raised an equal amount of capital to fund the repayment. It cut100,000 jobs during the year and completed 14 asset sales, including the Smith Barney brokerage and Japanese units Nikko Cordial Securities and Nikko Asset Management.
The bank's loss after accounting for payment of preferred dividends came to almost $7.77 billion, or 33 cents per share, compared with a loss of $18.16 billion, or $3.40 a share, a year earlier. In the third quarter of 2009, it earned $101 million.
The latest results were in line with analysts' expectations, according to Thomson Reuters. Citigroup lost 6 cents per share excluding the charges tied to repaying government bailout money.
Citigroup said it recorded an after-tax loss of $6.2 billion for expenses related to the bailout repayment. The government has converted the remaining $25 billion of the bailout money it gave Citigroup into a 34 percent stake in the bank. The government is planning to sell its stake in the bank during the next year.
In 2009, Citigroup spent much of the year in reorganization, splitting its operations into two units, Citicorp and Citigroup Holdings.
Citicorp, which holds the bank's primary businesses such as regional consumer banking, generated net income of $1.7 billion during the quarter. Citigroup Holdings, which is where the bank placed noncore assets that it has been looking to sell or unwind, lost $2.5 billion during the October-December period.
Total assets in Citigroup Holdings fell by $70 billion to $547 billion during the fourth quarter. For the full year, Citigroup lost $1.61 billion, or 80 cents per share. It lost $27.68 billion, or $5.61 per share in 2008.
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