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| Citigroup to shed $400bn assets | Citigroup to shed $400bn assets |
| (about 6 hours later) | |
| US banking giant Citigroup has said it wants to sell $400bn (£205bn) of assets over the next three years as part of its bid to return to profit. | US banking giant Citigroup has said it wants to sell $400bn (£205bn) of assets over the next three years as part of its bid to return to profit. |
| It has $500bn of "legacy assets" that it wants to reduce to $100bn. | It has $500bn of "legacy assets" that it wants to reduce to $100bn. |
| Since late 2007, Citigroup has raised more than $36bn in capital to fund its losses and write-downs from sub-prime mortgages and other debt. | Since late 2007, Citigroup has raised more than $36bn in capital to fund its losses and write-downs from sub-prime mortgages and other debt. |
| Last week, it announced plans to sell $3bn worth of new shares to bolster its financial position. | Last week, it announced plans to sell $3bn worth of new shares to bolster its financial position. |
| That came shortly after it issued $6bn of preferred shares. | That came shortly after it issued $6bn of preferred shares. |
| Further losses? | Further losses? |
| It lost just under $15bn for the six months to the end of March, and its write-downs are second only to UBS. | It lost just under $15bn for the six months to the end of March, and its write-downs are second only to UBS. |
| Legacy assets are long-held or even sleeping assets - including businesses - that have been accumulated by the group over time, but are now considered non-core. | Legacy assets are long-held or even sleeping assets - including businesses - that have been accumulated by the group over time, but are now considered non-core. |
| As part of the new plan, Citigroup also hopes to achieve annual net revenue growth of 10% from core operations, including credit card operations, consumer banking, securities and banking, and wealth management. | As part of the new plan, Citigroup also hopes to achieve annual net revenue growth of 10% from core operations, including credit card operations, consumer banking, securities and banking, and wealth management. |
| In an attempt to reduce costs, the firm has also announced job cuts of some 13,200 since the credit crisis struck. | In an attempt to reduce costs, the firm has also announced job cuts of some 13,200 since the credit crisis struck. |
| Even if the bank has seen the worst of the credit crisis, many analysts say there is still likely to be more to come. | Even if the bank has seen the worst of the credit crisis, many analysts say there is still likely to be more to come. |
| Analyst Mike Mayo of Deutsche Bank estimated on Thursday that Citigroup's $29bn mortgage investments and related products could lead to a further $15bn write-down. | Analyst Mike Mayo of Deutsche Bank estimated on Thursday that Citigroup's $29bn mortgage investments and related products could lead to a further $15bn write-down. |
| Citigroup also said on Friday that it expected revenue over the next two to three years to grow 9% but shares in the firm closed 2.8% lower, reversing earlier gains. |