Citigroup in bond trading slump

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Citigroup reported fourth-quarter profit that missed Wall Street estimates as bond trading slumped.

Bloomberg reports that net income more than doubled to $2.69bn from $1.2bn a year earlier, when Citigroup reported a $653m charge, the bank said Thursday in a statement

CEO Michael Corbat, 53, sought to cut costs and boost revenue even as trading from bond and foreign-exchange markets came under pressure. The effort was marred by a 15% drop in fixed-income revenue excluding accounting charges. Adjusted profit decreased 8% at the securities and banking unit and 16% for global consumer banking, according to the firm.

'We haven’t seen any rebound in fixed income,' Marty Mosby, a bank analyst with Guggenheim Securities, said in an interview before the results were announced. That’s what the bank 'really needs because they are more heavily dependent on that than the other money-center banks', he said. Mosby has a buy rating on the stock with a $68 price target.

To access the complete Bloomberg article hit the link below:

Citigroup Earnings Miss as Bond-Trading Slump Slows Turnaround

Goldman Sachs Cuts Pay Ratio to Second-Lowest as Public Firm

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