Profits at Citigroup slumped by 37% in the fourth quarter of 2002 as the corporate and investment banking business slipped into the red on the back of a $1.5bn (€1.4bn) regulatory settlement charge and higher credit reserves.

Corporate and investment banking posted a loss of $344m, compared with a profit of more than $900m in the fourth quarter of 2001. Annual revenues in the sector slumped by 33% year-on-year, falling from $4.5bn in 2001 to just over $3bn.