Citigroup Posts $4.4 Billion Profit
It’s earnings week on Wall Street, and analysts had estimated that megabank Citigroup would break even in the first quarter. This morning, it announced a $4.4
Jul 31, 2020304.7K Shares4.1M Views
It’s earnings week on Wall Street, and analysts had estimatedthat megabank Citigroup would break even in the first quarter. This morning, it announceda $4.4 billion profit — meaning the bank made around $49 million a day in the first three months of the year. Sure, markets improved and revenue grew, but, in a releasealong with the financial statement, Chief Executive Office Vikram Pandit noted the real reason for the company’s profitability:
“„All of us at Citi recognize that we would not be where we are without the assistance of American taxpayers. We are gratified that Citi has been able to repay their TARP investment in our company, with a substantial return, as well as create a significant increase in the value of their equity in Citi.
“„Still, that is not enough. We owe taxpayers a huge debt of gratitude for assisting us at a critical time. We are determined to repay this debt by continuing to build a strong company and contribute to America’s economic recovery.
Citigroup received a total of $45 billion in bailout funds during the worst of the crisis. It has repaidbillions to the Treasury Department, which announcedthat it will sell off its Citigroup stock before the end of the year. The government owns nearly 30 percent of Citigroup shares, and stands to make a $7.5 billion profit if the stock stays up.
Paolo Reyna
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Paolo Reyna is a writer and storyteller with a wide range of interests. He graduated from New York University with a Bachelor of Arts in Journalism and Media Studies.
Paolo enjoys writing about celebrity culture, gaming, visual arts, and events. He has a keen eye for trends in popular culture and an enthusiasm for exploring new ideas. Paolo's writing aims to inform and entertain while providing fresh perspectives on the topics that interest him most.
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