Oct. 2 (Bloomberg) -- Saudi Prince Alwaleed bin Talal, Citigroup Inc.'s biggest single investor, said he supports the strategy of Chief Executive Officer Charles Prince after the largest U.S. bank said third-quarter profit slumped 60 percent.

``I'm backing the management of Citi,'' billionaire Alwaleed said in an e-mailed statement today. With the ``hiccup'' of third-quarter results out of the way, ``our journey with Citi will continue because we remain loyal,'' he said.

Citigroup, based in New York, said yesterday that $5.9 billion of credit and trading losses on loans and mortgage- backed securities pushed profit to the lowest in three years. Deutsche Bank analyst Mike Mayo called for CEO Prince's removal, saying the writedowns add to a list of gaffes that already includes failure to control expenses and ill-advised executive appointments.

The chief executive said in yesterday's statement that the bank expects ``to return to a normal earnings environment in the fourth quarter.''

The contagion from the worst U.S. real-estate market in 16 years is taking a growing toll on global banks. UBS AG, Europe's biggest bank, reported its first quarterly loss in almost five years yesterday. Morgan Stanley, Bear Stearns Cos. and Lehman Brothers Holdings Inc., three of the five largest U.S. brokerages, reported declining profits last month after reducing the value of their loan commitments and mortgage-bond holdings.

No One `Immune'

``No financial institution is immune from the financial turmoil in global markets or its ripple effects,'' Alwaleed said today. Citigroup ``will show normalized levels of performance towards the fourth quarter,'' he said. Alwaleed first invested in the U.S. company in 1991 and his Kingdom Holding Co. retains a 3.6 percent stake, according to the statement. The shares have declined 14 percent this year.

Citigroup rose 14 cents to $47.86 at 4 p.m. in New York Stock Exchange Composite trading, after climbing 2.3 percent yesterday.

Since Prince took over, Citigroup's stock has climbed 1.8 percent, well below the 35 percent gain for the Standard & Poor's 500 Financials Index.

``The question is no longer, `Who is the perfect CEO?''' said Deutsche Bank's Mayo, who rates the shares ``buy.'' ``It's, `Is there someone who can do a better job?' If you frame it that way there's probably many contenders.''

Mayo said he's not a ``lone wolf crying in the middle of the woods.''

Talking to Investors

``I've talked to many, many investors globally, and what I'm saying reflects mostly all of the investors that I speak with,'' he said.

Citigroup spokesman Mike Hanretta declined to comment on behalf of CEO Prince.

Alwaleed last year criticized Prince for failing to rein in expenses or invigorate the stock price. In today's statement, Alwaleed said he's satisfied with the Citigroup CEO's plan to pare costs.

``Citi's strategy to grow and cut costs such as reducing payroll is clear,'' Alwaleed said in the statement.

To contact the reporter on this story: Will McSheehy in Dubai at wmcsheehy@bloomberg.net; Bradley Keoun in New York at bkeoun@bloomberg.net.

Last Updated: October 2, 2007 16:30 EDT