Citigroup's key capital ratios were strong and it was profitable in the first two months of 2009, the troubled bank's CEO Vikram Pandit said in an internal memo sent to staff on Monday evening.

"In fact, we are profitable through the first two months of 2009 and are having our best quarter-to-date performance since the third quarter of 2007," Pandit told his employees, according to New York Times which obtained a copy of the memo.

Citigroup's revenues in January and February reached US$19 billion despite the ongoing economic recession. Citigroup had posted multi-billion losses in the past five straight quarters.

Citigroup shares were battered and dropped below 1 dollar for the first time in the company's history last week. Pandit said he is "disappointed with current stock price" and doesn't "believe it reflects the strengths of Citi."

Citigroup's Tier 1 ratio will remain at 11.9 percent as of December 31, 2008, assuming 100 percent participation in the exchange, its tangible common equity could increase to as much as US$81 billion, according to the memo.

Meanwhile, Citigroup's client businesses remain strong with stable deposits and well-performing client-driven Securities and Banking businesses.

Pandit praised his staff for having "done a very impressive job driving revenues and reducing cost structure.

Citigroup shares rallied 23.8 percent to US$1.30 in the Tuesday morning trading at New York Stock Exchange.

(Xinhua News Agency March 11, 2009)