Bloomberg News

Citigroup Reports $32.4 Billion at Risk in France, Belgium

October 17, 2011

(Updates the fifth paragraph to show that funds at risk in five European countries fell during the quarter.)

Oct. 17 (Bloomberg) -- Citigroup Inc., the third-largest U.S. bank by assets at midyear, said it has $32.4 billion in funded and unfunded exposure in France and Belgium before so- called hedges.

Of $14.4 billion in funded transactions, meaning the bank has already provided money, it has obtained collateral, margin agreements or credit protection covering all but $2 billion as of Sept. 30, it said today in a presentation on its website. The $18 billion in unfunded exposure includes $12.4 billion in commitments to companies, $4.2 billion to financial firms and $1.4 billion to sovereign entities.

Citigroup, led by Chief Executive Officer Vikram Pandit, is giving shareholders more information about business in Europe as investors try to gauge potential fallout from a debt crisis centered on Greece, Italy, Ireland, Portugal and Spain -- known as the GIIPS. The bank, which tumbled 38 percent during the third quarter, rose 0.7 percent to $28.59 as of 10:21 a.m. today in New York after reporting a $3.77 billion quarterly profit that beat analysts’ estimates.

Credit protection was purchased from “high quality financial institutions predominantly outside” the seven European countries, New York-based Citigroup said. The firms are mainly in the U.S., U.K. and Germany, Chief Financial Officer John Gerspach said on a conference call with journalists today, declining to identify any of the companies.

Gross funds at risk in five other European countries fell during the third quarter to $29.8 billion from $31.7 billion on June 30, today’s presentation shows. At the end of September, funded exposure in the GIIPS countries amounted to $20.6 billion, while unfunded commitments were $9.2 billion, the bank said. It had $13.5 billion in collateral, margin agreements or credit protection for the funded transactions.

--Editors: David Scheer, Dan Kraut

To contact the reporter on this story: Donal Griffin in New York at dgriffin10@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net


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