According to analysts, Citigroup Inc. (NYSE: C,TYO: 8710) will have to cut or eliminate its current dividend and raise additional capital. Unless it’ll have enough earnings power.
The evidence of possible bank’s loss in 2008 lies in its first quarter financial report. It announced a $5.11 billion quarterly loss on Friday and said it will cut another 9,000 jobs.
In comparison with the loss, bank’s profit swooped down 45 percent to $1.43 billion in consumer banking.
Analysts predict that the major American financial services company will go on losing money for the next three quarters of 2008. It may lead to sales of non-core assets of the company. The loan loss provision will be at the same level for at least another four quarters.
Citigroup’s stock dropped more than 3 percent to $24.26 in morning trade on the New York Stock Exchange.
After it turned out that Deputy Prime Minister Andrei Belousov included the Fonbet betting company in the list of backbone enterprises that can count on state support, everyone started talking about these bookmakers.