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Citigroup quarterly profits slide | Citigroup quarterly profits slide |
(about 1 hour later) | |
Citigroup's profits fell in the second quarter because of weakness at its consumer banking business. | Citigroup's profits fell in the second quarter because of weakness at its consumer banking business. |
The 14% fall in net income to $4bn (£3bn) was not as bad as feared. In June, chief executive Michael Corbat warned of a 25% fall in net income. | The 14% fall in net income to $4bn (£3bn) was not as bad as feared. In June, chief executive Michael Corbat warned of a 25% fall in net income. |
Consumer banking in North America had a weak quarter. Net income fell 22%, hit by falling sales and higher costs. | Consumer banking in North America had a weak quarter. Net income fell 22%, hit by falling sales and higher costs. |
But its trading operations were strong in the April-to-June period, with a 10% increase in revenue to $4.7bn. | But its trading operations were strong in the April-to-June period, with a 10% increase in revenue to $4.7bn. |
In particular, the bank's bond trading business did well, reporting a 14% increase in revenue to $3.5bn. | |
Citigroup attributed the rise to more activity from its big clients. | |
However, banking analyst Christopher Wheeler from Atlantic Securities believes that business saw a boost in trading activity following the UK's vote to leave the European Union. | |
'Volatile environment' | |
In a statement accompanying the results, Mr Corbat said: "These results demonstrate our ability to generate solid earnings in a challenging and volatile environment, again highlighting the resilience of our institution." | |
Rival banking giant Wells Fargo reported a 3.5% fall in quarterly net income to $5.17bn, which was in line with market expectations. | Rival banking giant Wells Fargo reported a 3.5% fall in quarterly net income to $5.17bn, which was in line with market expectations. |
Wells Fargo profits were hit by the company making extra provisions for loans going bad. | Wells Fargo profits were hit by the company making extra provisions for loans going bad. |
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