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NEW YORK - Citigroup, the largest US bank by market value, said yesterday its quarterly earnings would drop 60 per cent on US$5.9 billion ($7.7 billion) in losses and write-downs from sub-prime and leveraged loan woes, fixed income trading and also weakness in its consumer business.
The profit warning came the same day Swiss bank UBS disclosed US$3.4 billion in losses, driven by some of the same factors.
Citigroup shares were up 2.4 per cent despite the warning, after its chief executive Charles Prince made assuring noises about the fourth quarter.
Analysts were betting that, like weaker results last month at Goldman Sachs and Lehman Brothers, Citi's stumble could be a one-off.
- Reuters
