Citigroup says $30 bln capital helps exceed target

NEW YORK (Reuters) - Citigroup Inc <C.N>, which last week posted a record $9.83 billion quarterly loss, on Tuesday said it has strengthened its balance sheet and replenished depleted capital levels by raising about $30 billion in the last two months.

Following $18.65 billion of offerings last week, the largest U.S. bank said it expects to finish the fourth quarter on a pro forma basis with an 8.8 percent Tier-1 capital ratio and a 6.9 percent ratio of tangible common equity to risk-weighted assets. The bank's respective targets are 7.5 percent and 6.5 percent.

Citigroup moved to bolster capital levels in the wake of deteriorating housing and credit markets, which led to more than $30 billion of debt write-downs and credit losses over the last two quarters.

"We wanted to make sure that we can put capital to work for our clients and capture market opportunities for our shareholders," Chief Executive Vikram Pandit said in a statement.

Last week, Citigroup said it ended 2007 with a Tier-1 ratio of 7.1 percent, down from 8.59 percent a year earlier. Regulators consider banks "well-capitalized" when they maintain a 6 percent Tier-1 ratio, which measures the ability to cover losses.

Citigroup's capital-raising included several offerings of preferred shares, much of which can be convertible into common stock at a later date.

Among the investors were funds affiliated with the Abu Dhabi, Kuwait and Singapore governments; former Citigroup Chief Executive Sanford "Sandy" Weill; and Saudi Prince Alwaleed bin Talal, Citigroup's largest individual shareholder.

Pandit became chief executive in December, replacing Charles Prince, who had resigned the previous month as losses were mounting. The bank last week announced 4,200 job cuts and pledged to find other ways to reduce costs.

(Reporting by Jonathan Stempel; Additional reporting by Joseph A. Giannone; Editing by Mark Porter and Gerald E. McCormick)