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Citigroup reports Q1 net loss of $5.1 billion

Citigroup has reported a net loss of $5.11 billion or $1.02 loss per share for the first quarter of 2008, compared to net income of $5.01 billion or $1.01 earnings per share for the same period of 2007.

The company reported revenues of $13.2 billion for the first quarter of 2008, a 48% decrease, compared to revenues for the same period of 2007.

First quarter 2008 results include $6 billion in pre-tax write-downs and credit costs on sub-prime related direct exposures. Results also include write-downs of $3.1 billion (net of underwriting fees) on funded and unfunded highly leveraged finance commitments, a downward credit value adjustment of $1.5 billion related to exposure to monoline insurers, write-downs of $1.5 billion on auction rate securities inventory, and a $3.1 billion increase in credit costs in global consumer.

Vikram Pandit, CEO of Citigroup, said: Our financial results reflect the continuation of the unprecedented market and credit environment and its impact on our historical risk positions. During the first quarter, valuations of our sub-prime related exposures in fixed income markets and leveraged finance assets have further declined and credit costs in our consumer lending businesses have increased.

Despite the negative factors in the broader markets, we continue to see strong momentum throughout the organization with robust volumes in many of our products and regions.