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Citigroup posts $2.5b loss, but beats expectations

(Agencies)
Updated: 2008-07-18 23:43

NEW YORK -- Citigroup posted another loss and laid off 6,000 employees in the second quarter as it struggled with surging loan defaults, but the $2.5 billion shortfall was smaller than Wall Street anticipated.

In this May 9, 2008 file photo, a pedestrian walks past the Citigroup Center building in New York. Citigroup says it posted a $2.5 billion loss Friday, July 18, 2008, and laid off more employees in the second quarter as it struggled with surging loan defaults. [Agencies]

Citi's shares rose 5 percent in premarket trading Friday and helped boost the broader market, whose grim prognosis for the US financial system this year sent stocks plummeting.

The nation's biggest banking company by assets lost the equivalent of 54 cents per share in the April-June period. In the same timeframe last year, the bank earned $6.23 billion, or $1.24 per share.

Analysts surveyed by Thomson Financial had predicted a larger loss of 66 cents share.

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