Citigroup Inc. CEO Vikram S. Pandit abruptly resigned today, with the board of directors announcing he will be replaced by Michael Corbat, who previously served as chief executive of the bank’s Europe, Middle East and Africa divisions.
Pandit’s resignation comes the day after Citigroup announced its third quarter earnings, which left investors feeling optimistic about the bank’s recovery from the financial crisis.
“Citigroup is well-positioned for continued profitability and growth, having refocused the franchise on the basics of banking,” Pandit said in a statement. “Given the progress we have made in the last few years, I have concluded that now is the right time for someone else to take the helm at Citigroup.”
Corbat was also named to Citigroup’s board of directors, while Pandit stepped down from his role on the board.
Citigroup President and COO John P. Havens, who had been planning to retire at the end of 2012, also announced his resignation, effective immediately.
Citigroup, the nation’s third-largest bank by assets, reported profit fell to $468 million, or $0.15 a share, in the third quarter compared with profit of $3.8 billion, or $1.23 a share, a year ago.
The bank attributed the decline to an after-tax loss of $2.9 billion related to its continued exit from Morgan Stanley Smith Barney, with Citigroup agreeing last month to sell its share in the joint brokerage venture to Morgan Stanley, beginning with a 14 percent stake.
In all, the bank’s Citi Holdings unit posted a $3.56 billion loss in the third quarter compared to a loss of $1.23 billion a year ago; however, without the charges related to Morgan Stanley Smith Barney, losses in the Citi Holdings unit would have been $679 million.
Excluding the loss on the bank’s Citi Holdings unit, a one-time accounting charge and credit adjustments, Citigroup’s third quarter earnings were $3.47 billion, or $1.06 a share.
The bank’s stock was up 5.5 percent following the results, which topped analysts’ projections.
