Citi Loses $5.1 Billion on Write Offs and Revenue Drop

Citigroup (NYSE: C ) reported today it lost $5.1 billion in the first quarter due to $12 billion in various losses, including write downs in the mortgage market, credit adjustments for expenses related to bond insurers, consumer credit problems, and leveraged financial commitments.

Total revenues were $13.2 billion, down 48 percent from $25.4 billion in the first quarter of 2007.
Total U.S. Consumer revenues were $8.0 billion, up from $7.7 billion. Higher expenses and credit costs meant a net loss of $476 million. Expenses grew 53%, driven by acquisitions, increased business volumes, and higher collection expenses. Credit costs increased $1.2 billion, driven by higher net credit losses, up $762 million, and a $659 million pre-tax charge to increase loan loss reserves.

The U.S. Card Group reported managed revenues of $4.8 billion, up 14 percent from $4.2 billion a year ago. The bank earned a $349 million pre-tax gain on its sale of Visa shares during the payment network’s initial public offering in March.

Net income for the U.S. card group was $595 million, including the gain on the Visas shares. The net credit loss ratio was 5.38 percent compared with 4.58 percent a year ago. Total managed receivables rose to $147 billion from $139.2 billion.