Citigroup returns to profit in 2009

Citigroup swung to profit in 2009 with first quarter profit of $1.6 billion, coming back from massive losses in 2008 of $18.72 billion, the troubled banking giant said Friday.

Citi, which needed special help from the US government to weather the financial crisis, returned to the black in the January-March period following a $5.1 billion loss in the same period last year.

Citi stockholders did not get a slice of the profit due to the special share arrangements of the banking group, and took a loss of 18 cents per share but this was not as bad as analyst projections of a loss of 34 cents per share.

"Our results this quarter reflect the strength of Citi's franchise and we are pleased with our performance," chief executive Vikram Pandit said.

"With revenues of nearly $25 billion and net income of $1.6 billion, we had our best overall quarter since the second quarter of 2007."

The US government owns a 36 per cent stake in Citi following the latest bailout and conversion of special preferred shares to commong stock.

But other Citi shareholders did not share in the profit because of dividend arrangements on the US government shares as well as other private stakes including from a Saudi prince and the Government of Singapore Investment Corporation.

Total revenues rose 99 per cent from a year ago to $24.8 billion and the company's interest margins rose half a point to 3.3 per cent.

Citi, which has been hammered as a result of the US housing meltdown and subsequent credit crunch, said it had trimmed 13,000 jobs since the fourth quarter and 65,000 since peak levels to leave its total workforce at 309,000.