Citigroup Inc, the largest U.S. bank by assets, announced a $5.1 billion first quarter loss along with more than $12 billion in writedowns linked the struggling mortgage and credit markets.

We're not happy with our financial results this quarter, although they are not completely unexpected given the assets we hold, said newly installed Chief Executive Vikram Pandit.

The bank is also moving control expenses. Citigroup announced that it would cut 9,000 jobs, with the majority of those coming from its consumer banking division and 1,700 in its investment banking unit.

Investor were glad the results weren't even worse, as some analysts had predicted. The market sent Citigroup's market value higher on Friday. Shares rose 4.5 percent, or $1.08, to close at $25.11 in New York Stock Exchange trading.

Chief Financial Officer Gary Crittenden said in a conference call with analysts on Friday that more losses could extend beyond where we've seen historical levels go.

We are in uncharted territory, he said. There are times where we could face significant headwinds during the year.

The company has suffered more than $32 billion in losses in its investment bank division alone since the credit crisis began over the summer. The bank has had to raise additional capital through investors by selling new shares, which have the effect of diluting the value of current shares.

Citigroup has obtained more than $30 billion in capital since the crisis began last summer and Crittenden did not rule out having to raise additional more.

Vikram pandit Investment Citigroup Wachovia