Citigroup is taking a charge of $1.5bn (€1.4bn) in the fourth quarter after reaching a settlement with US regulators over alleged conflicts of interest, but still expects to deliver record core and net income for 2002.

Sandy Weill, chairman and chief executive officer of Citigroup said: "We will take a charge toward the anticipated cost of resolving regulatory inquiries and associated litigation, as well as increased credit losses."