Citigroup Weighed Down By Citi Holdings Assets

12-16-2009 | Source: emii.com

Citigroup and Bank of America yesterday paid off debt from the Troubled Asset Relief Program, but Citigroup still has $617 billion in troubled assets under Citi Holdings, reports Bloomberg. The division was created to isolate unprofitable businesses and troubled loans and securities.

Despite having rid itself of $100 billion of the assets so far, Citigroup earnings could be hurt for years to come, according to analysts. Citigroup lost $1.7 billion this year, but analysts project that profit could be in excess of $9 billion by 2011, despite a projection for a 16% decline in revenue during the next two years.

Citi Holdings includes CitiFinancial, CitiMortgage, Primerica Life-Insurance, and roughly $182 billion of Citigroup’s riskiest loans. In the first nine months of this year, Citi Holdings posted a loss of $6.79 billion, after a loss of $21.3 billion over the same period last year.

Click here to read the article from Bloomberg.




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