BUSINESS INFORMATION - Giant banks in difficulty, Citigroup

BUSINESS INFORMATION - Giant banks in difficulty, Citigroup, exceeded expectations on Thursday, with third quarter profits to record a 101 million U.S. dollars.

Because of the special dividend is required of a government bailout of big, big result for a loss of shareholders 27 cents per share.

But the result was better than expected loss of 38 cents per share.

Citigroup has received about 45 billion U.S. dollars of capital from the U.S. Treasury for financial support, some of which have been converted into common shares.

It has given the government 34 percent ownership stake in companies that had become the largest financial groups in the world, who are now working to slim down and pay for government funds.

"We continue to execute our plan, and sustainable profitability remains our primary objective in the near future," said Vikram Pandit, CEO.

"While consumer credit in international markets increased, the U.S. consumer credit environment is still challenging."

Citi has been drowning in losses from the collapse of the U.S. housing bubble and the financial squeeze in the entire world. Company lost 18.7 billion U.S. dollars in 2008, prompted the government to provide massive aid.

But Citi has recorded profits during the third quarter and, although the shareholders did not see their income.

In the third quarter, overall profit was offset by U.S. $ 288 million special dividend to the U.S. government and shareholder choice, including foreign investment companies.

Revenue rose to 20.4 billion dollars from 16.3 billion U.S. dollars in the same period a year ago.

Citi still suffered losses from mortgage loans and domestic consumers. Local consumer lending unit lost 2.1 billion dollars in the third quarter.

This was offset by profit 2.3 billion U.S. dollars in a unit of Citicorp, which covers trade, investment banking and lending outside the United States.

Overall, Citi's results better than expected earnings and the other in the banking sector who are sick including JPMorgan Chase and Goldman Sachs.

Citigroup completed earlier this year plan to transform part of the U.S. government's capital injection into ordinary shares, together with that of Singapore and other governments.

Previous shareholders have limited ownership of its stake to 24 percent. Citi's capital reorganization step without adding new funds, but increase the common equity is considered more powerful by the banking regulator.