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Pandit's Citigroup reports first profitable year- reported $10.6 billion earnings in 2010---
By Arun Kumar
Washington, Jan 18 (IANS) Citigroup Inc led by Indian American chief executive Vikram Pandit reported $10.6 billion earnings in 2010, marking the first profitable year since he took charge of the banking giant in December 2007.
The New York-based third-largest US bank reported its fourth straight quarterly profit, but its shares fell in pre-market trading as revenue fell far short of estimates.
With $1.31 billion earnings, less than analysts estimated, fourth-quarter net income was four cents a share, compared with a $7.58 billion loss, or 33 cents, in the same period in 2009.
Eight analysts had predicted in a Bloomberg survey that Citigroup would report a per-share profit of seven cents.
"I am very pleased that with our fourth consecutive profitable quarter, we earned $10.6 billion for the year," said Pandit, 54, who nursed the ailing bank to health with a token annual salary of $1 after some $39 billion of losses over 2008 and 2009.
"Although the economic environment remains uncertain, our future path is clear: As America's global bank, we've built a foundation capable of producing sustained profitability and our next goal is to achieve responsible growth," he said.
The US Treasury, which gave the bank a taxpayer-funded $45 billion bailout in 2008, also sold the last of its stake in the fourth quarter. Citigroup stock rose 43 percent during the year.
Citigroup recorded $6.9 billion in credit losses for the quarter, which is down 11 percent from the third quarter and marks its sixth straight decline.
The bank released $2.3 billion of previous loan loss reserves into earnings. All told, its loan loss provision was $4.8 billion - about $600 million below the Barclays target, CNNMoney said.
Pandit's Citi reports $4.4 billion profit for first quarter
WASHINGTON, April20, 2010
As Citigroup announced a profit of $4.4 billion in the first quarter, its biggest in almost three years, the banking giant's Indian American CEO Vikram Pandit expressed cautious optimism about the future. "............Read
Pandit says Citi now 'fundamentally different', much healthier
WASHINGTON, March 5, 2010
Citigroup's Indian American CEO Vikram Pandit says the troubled banking giant is today "fundamentally different" and far healthier than when he took over thanks to an over $45 billion government bailout."............Read
Did
CEO of Citigroup, Vikram Pandit lie to Congress about his compensation?
Citigroup
Inc awarded Chief Executive Vikram Pandit $10.82 million of
compensation in 2008, a year when the government propped up
the bank with $45 billion of capital.
WASHINGTON, March 17, 2009
Ramesh Vema
In February, Citigroup CEO Vikram Pandit told a House committee
that he received only $1 million in salary and “no bonus”
in 2008. He said, "As I stated earlier, I plan to take a
dollar per year salary and no bonus until we return to profitability."............Read
NRI
Vikram Pandit stays CEO of Citigroup Bailout Bank,
US government to control 36 percent
WASHINGTON, Feb 27, 2009
Ramesh Vema
The US government announced its stake in Citigroup 36% common stock
and control of the bank's operation. In October and November, government
injected $45 billion backstop to losses on $301 billion of assets.
Marshall Front, chairman of Front Barnett Associates LLC in Chicago,
which invests $500 million and said:
- Investors want to see heads roll because they're so angry at
the entire banking industry
- the drop in the stock was not steeper because "the stock
long ago discounted substantial dilution, which is now being formally
recognized.
The Citigroup to offer to exchange common stock for up to $27.5
billion of its preferred shares at $3.25 per share. The government
will match the exchange up to $25 billion, provided private investors
do the same. Citigroup will stop dividends on preferred and common
stock. The shareholders will have ownership of the bank about 26%
and the government stake is now close to 8%. The present administration
likes to keep banks as private
Vikram Pandit, CEO said:
- Senior executives "completely remain in charge" of
day-to-day operations.
- This capital should take confidence issues off the table, even
in a stressed environment.
- Citicorp has retail banking and other businesses
- Citi Holdings, which includes troubled or under performing assets
it wants to sell or wind down.
- The bank had little choice and decision was difficult for current
investors. The whole banking business is about confidence
About Vikram Pandit, 50:
He was born in Nagpur, Maharashtra, India. His father S B Pandit
was an executive director of Sarabhai Chemicals in Baroda.
He went to Dadar Parsee Youths Assembly High School in Dadar,
Mumbai. He came to US at the age of 16 to study at Columbia University.
He received a B.S., M.S. in electrical engineering and M.B.A in
1980. He did his Ph.D. in finance from Columbia Business School
in 1986. He is trustee at Columbia University
- He was a professor at Indiana University Bloomington
- From 1994 to 2000, he head of Morgan Stanley's institutional
securities division
- Pandit left Morgan Stanley with a few colleagues to start a
hedge fund named Old Lane Partners.
- From 2000 to 2005, he led the institutional securities
- Citigroup subsequently purchased the fund in 2007 for $800 million.
- On December 11, 2007, Pandit was named the new CEO of Citigroup
- In January 2008, Pandit was given a sign-on grant of stock and
performance-based options worth more than $48 million, though
the options currently have no cash value.
He serves on the boards of Columbia University, Columbia Business
School, the Indian School of Business and The Trinity School.
Dr. Vikram Pandit testified to Congress on February 11th, 2009
that he has told his board of directors to set his salary at $1
with no bonus until the company makes money again. He did a mistake
for letting the bank consider buying a private jet plane after receiving
some $45 billion in bailout money. The bank ultimately scrapped
the plan under pressure from U.S. President Barack Obama.
He married to Swati and live with their daughter, Maya, and son
in a $18m co-op apartment on the Upper West Side.
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