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 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 release along 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 repaid billions to the Treasury Department, which announced that 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.
