NEW YORK (Reuters) - Citigroup Inc expects to take a $1.4 billion pre-tax charge in its just-completed fourth quarter related to its exposure to LyondellBasell, the world's third-largest petrochemical company, whose U.S. operations filed for bankruptcy protection this week.
In a statement late Thursday, CITIGROUP (C.NY)said the charge is mainly to boost loan loss reserves. It said it ended December with about $2 billion of gross exposure to LyondellBasell, mainly in the bank's institutional clients group.
The addition to reserves will increase the size of what analysts already expected to be the fifth straight quarterly loss for New York-based Citigroup, the third-largest U.S. bank by assets.
Analysts on average had expected a loss of 70 cents per share for the fourth quarter, according to Reuters Estimates.
LyondellBasell Industries'
The privately held company is based in the Netherlands, and its non-U.S. units are not included in the bankruptcy.
Citigroup is among the lenders that agreed to provide $8 billion of financing to help LyondellBasell fund its day-to-day U.S. operations.
Shares of Citigroup closed Thursday up 1 cent at $7.16 on the New York Stock Exchange. They were little changed in after-hours trading following the bank's announcement.
(Reporting by Jonathan Stempel; editing by Gunna Dickson)