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

By Kevin Spak,  Newser Staff
Posted Apr 17, 2009 6:45 AM CDT
Citi Swings to Surprise $1.6B Profit—1st in 18 Months
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)

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.
(Read more Citigroup stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X