Financial giant takes $18.1 billion writedown and slashes dividend, while getting a $12.5 billion capital infusion.
Citigroup Inc. delivered some of the worst quarterly results in its history Tuesday, reporting a nearly $10 billion loss that was much worse than Wall Street had anticipated.
The financial giant also announced a writedown of $18.1 billion related to soured mortgage investments and a 41 percent cut to its dividend. At the same time, it said it was receiving a $12.5 billion infusion from investors in Kuwait, Singapore and the state of New Jersey.
Citigroup (C, Fortune 500) shares gained 1.5 percent in pre-market trading on the news.
The company recorded a net loss of $9.83 billion, or $1.99 a share, in the fourth quarter. In the same period last year, the company reported a profit of $5.13 billion, or $1.03 per share.
Tuesday's results mark Citigroup's first quarterly loss since the merger of Citicorp and Travelers Group in 1998.
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