Citigroup today reported a net loss of $5.1 billion, or $1.02 per share, for the first quarter of 2008, compared to net income of $5 billion a year ago, and said it would slash an additional 9,000 jobs to cut costs.
The results include $6 billion in write-downs tied to subprime related exposures and another $6 billion in other write-downs and market value adjustments on stuff like Alt-A mortgages and commercial real estate positions.
Total revenue was $13.2 billion, a decrease of 48 percent, largely related to the hefty write-downs associated with the bank’s subprime holdings.
In the company’s U.S. consumer segment, higher delinquencies tied to first and second mortgages led to an increase in net credit losses of $1.1 billion and a $1.2 billion increase in loan loss reserves.
Fourth quarter loan originations increased to $34.3 billion from $29.5 billion in the third quarter, but were off from year-ago levels of $39.6 billion.
Delinquencies in the company’s real estate lending division climbed more than 15 percent from the fourth quarter to 2.73 percent, and were nearly triple the 1.13 percent rate a year ago.
In early March, Citi said it planned to reduce its residential mortgage assets by a whopping $45 billion within the year while cutting the amount of new loans to be held in its portfolio by more than 50 percent.
Shares of Citi were up $1.80, or 7.49%, to $25.83 in afternoon trading on Wall Street.