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Citi Swings to Surprise $1.6B Profit—1st in 18 Months

By Kevin Spak,  Newser Staff

Posted Apr 17, 2009 6:45 AM CDT
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(Newser) – Citigroup posted its first profitable quarter in 18 months today, thanks in no small part to $45 billion in bailout funds and changes to accounting rules, Bloomberg reports. The company posted a $1.6 billion profit, up from a $5.1 billion loss last year. The company reported a loss per share of 18 cents, beating estimates of a 32-cent loss.

The company would have posted a sixth-straight losing quarter if not for a new accounting rule that lets companies record declines in the market value of its debt as unrealized gain, notes Bloomberg. That change gave the company a $2.5 billion boost. Its investment banking group also turned profitable.

Citigroup Chief Executive Officer Vikram Pandit talks with reporters outside the White House in Washington, Friday, March 27, 2009, following a meeting with Barack Obama.
Citigroup Chief Executive Officer Vikram Pandit talks with reporters outside the White House in Washington, Friday, March 27, 2009, following a meeting with Barack Obama.   (AP Photo/Evan Vucci)
A sign at the Citigroup Center is shown Thursday, April 16, 2009, in New York. Citigroup Inc. posted better-than-expected results for first quarter.
A sign at the Citigroup Center is shown Thursday, April 16, 2009, in New York. Citigroup Inc. posted better-than-expected results for first quarter.   (AP Photo/Mark Lennihan)
In this Nov. 24, 2008, file photo, then Citigroup CFO Gary Crittenden comments during an interview at the Citigroup headquarters in New York.
In this Nov. 24, 2008, file photo, then Citigroup CFO Gary Crittenden comments during an interview at the Citigroup headquarters in New York.   (AP Photo/Craig Ruttle, file)
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It’s very hard for me to foresee that one quarterly earnings report, or one announcement by Vikram Pandit means all past things are forgiven. - Douglas Ciocca, portfolio manager at Renaissance Financial Corp.

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COMMENTS
Showing 1 of 1 comment
gilgordan
Apr 17, 2009 1:15 AM CDT
Truly amazing how a government Paulson Bernacki Ponzi Scheme can change the free markets from the abyss to the Everest in just 6 months. What a scam on the American legislators and the main street tax payers.

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