Citigroup, said profit tumbled 86%, missing analysts’ estimates after year-end trading slumped more than forecast.
That’s less than the 9-cent average estimate of 20 analysts surveyed by Bloomberg. Declining fixed-income business cut markets revenue 14%, worse than the 5% drop Chief Executive Officer Michael Corbat predicted a month ago.
Profit slid after markets broke from a period of muted volatility that spanned much of last year and as the dollar strengthened, shrinking earnings from overseas. While dealers typically like when prices swing because it spurs trading, they prefer 'sustained, reasonable levels' that follow a trend, Corbat said December 9. Bank of America today reported an 11% profit drop as fixed-income trading fell.
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