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By Mike Caggeso
Citigroup Inc.'s (C) highly anticipated first-quarter earnings missed analyst's expectations, as the largest U.S. bank posted its second straight loss and announced it will cut 9,000 jobs this year.
More than $16 billion in write-downs and higher consumer credit costs caused the company to record a loss of $5.11 billion, or $1.02 a share, compared with a profit of $5.01 billion, or $1.01 a share, a year earlier. Revenue fell 48% to $13.22 billion.
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Reuters analysts expected an average loss of 96 cents a share and revenue of $14.35 billion.
"This is the quarter they get to clear the decks," Arthur Hogan, chief market analyst at Jefferies & Co. in Boston, told Reuters. "(Chief Executive Officer)is coming in and making pretty big changes, and that's what he gets to do."
But so was the fourth quarter, with the first 4,200 job cuts.
Pandit, who assumed CEO duties in December, said the company's financial results "reflect the continuation of the unprecedented market and credit environment and its impact on our historical risk positions."
Despite Citigroup's loss, its stock rose more than 6% by mid-morning trading today (Friday).
Citigroup's earnings cap a week that's seen many of the nation's biggest financial firms post mixed, though fairly cathartic, results.
Bank of America Corp. (BAC) will release its earnings Monday, and expectations are low.
"Our expectation is for the economic environment to continue to be weak and for the capital markets to remain under stress," JPMorgan CEOsaid Wednesday.
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