Citicorp's burden

Click to follow
The Independent Online
NEW YORK - Despite improving profits, Citicorp will still have to raise another dollars 2bn to dollars 3bn in 1993 in an economy that is likely to remain weak throughout the year, John Reed, the chairman, told an investment seminar yesterday, writes Larry Black.

The bank, America's largest, managed a small profit in its most recent quarter, thanks largely to a windfall in its European currency trading operations. But problems with bad property loans, which forced Citicorp to add dollars 900m ( pounds 572m) to loss-reserves in the most recent quarter alone, will plague the bank through 1993.

It would also have to make several thousand more employees redundant around the world next year, he said. 'Any improvement in 1993 is going to have to come through cost savings.' But the bank is expected to make dollars 800m after-tax next year on the sale of assets.

Some analysts had expected many of the sales to come in the second half of this year, but Mr Reed would not offer an explanation for the apparent delay.