Citigroup Inc., the largest U.S. financial institution, warned Monday its third-quarter earnings are likely to decline 60 percent due to mortgage and loan losses.
It has taken more than 3 billion U.S. dollars in write-downs for securities backed by underperforming mortgages and loans tied to corporate buyouts, said Citigroup in an announcement.
Citigroup will write down about 1.4 billion dollars on funded and unfunded loan commitments when it announces its third-quarter results.
It will also record a loss of 600 million dollars in fixed-income credit trading due to market volatility.
Third quarter global consumer credit costs also increased 2.6 billion dollars from the same quarter a year ago, the company said.
The warning came after the Swiss bank UBS AG said it will post a loss of up to 690 million dollars in the third quarter partly due to losses linked to U.S. subprime mortgages.
Source: Xinhua
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