Citi reveal massive losses

By Simon Hayes on April 8, 2009 4:54 PM |

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Citibank International unveiled its 2008 accounts today and they don't make pretty reading for the beleaguered banking group.

The Wharf-based bank made net credit losses of £532million last year, compared to £125million in 2007.

Citi International, based in Canada Square, conducts the corporate, investment banking, private banking, alternative investment and consumer banking businesses of the company in the UK and Continental Europe.

Overall the business reported an £87million pre tax loss against a profit of £277million the previous year.

Total operating income came in at £1.25billion compared with £1.15billion the previous year.

The general deterioration of the European economy was given as the cause for the losses.

Citi wrote down significant amounts on exposure to Icelandic Banks and other companies across Europe, including unsecured lending in Greece, Portugal, Italy, Sweden and Denmark.

The accounts also show the division received a capital injection from its parent company of $300million and drew down EUR126million of debt facilities.

The poor performance had a knock-on effect on pay.

Directors of the unit collectively earned £1.35million last year compared to £3.3million the previous year, with the top paid director earning £1.1million, down from £1.9million in 2007.

Personnel expenses increased to £365million from £325million, largely as a result of redundancies.