Citigroup Inc. (C), the third-biggest U.S. bank, estimated it has at least $22 billion in loans, trading assets and other “exposures” to Greece, Italy, Portugal, Spain and Ireland.
The net figure includes $13 billion in so-called funded exposure as of June 30, mostly in the form of credit to financial institutions and companies, according to an earnings presentation today on the New York-based firm’s website. Sovereign entities account for “a little more than” $1 billion of that amount, it said.
The remaining $9 billion is unfunded exposure, mainly to international companies based in the five countries, where Citigroup provides settlement and clearing services, according to the presentation. Estimates were based on the firm’s internal risk measures, it said.
“Our exposure to the businesses and the sovereigns in those countries certainly is appropriate given our size, our stature and our business model,” Chief Financial Officer John Gerspach, 57, told reporters today on a conference call.
Citigroup, led by Chief Executive Officer Vikram Pandit, tumbled 5.3 percent in New York Stock Exchange trading on July 11 as concern mounted that Europe’s debt crisis may engulf Italy, which has the region’s second-highest borrowings.
The bank previously disclosed $12.3 billion in loans to Italian customers at the end of 2010, including banks and public entities, and a further $18.4 billion in legally binding “commitments.” This figure doesn’t include so-called hedges, when an investor makes a bet to protect against potential loss on an existing position. The company hadn’t made detailed disclosures on the five countries since then.
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