UBS Says Citigroup (C) May Report Q2 Loss

UBS AG analyst Glenn Schorr said Citigroup (NYSE: C) will likely report a loss in Q2, after forecasting more writedowns yesterday.

UBS estimated Citigroup will write down $8.7 billion of assets in the quarter. The analyst reduced his Q2 estimate to a loss of 40 cents a share from a previous prediction of 37 cents in profit.

Citigroup CFO Gary Crittenden yesterday predicted ``substantial'' additional writedowns and more losses on consumer loans. Citigroup has booked more than $42 billion of credit losses, or about 10% of the $396 billion racked up by banks worldwide

Schorr said there was nothing really new here, except the losses are just larger than what he originally thought. I still think they are larger than what he forecasts and so far I've been right.

Citigroup is a diversified global financial services holding company whose businesses provide a range of financial services to consumer and corporate customers.

Citigroup is trading down just over 3% to $19.50.

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