Markets

Citigroup profits fall 3 percent, hurt by credit costs

Citigroup profits fall 3 percent, hurt by credit costs

Quarterly profit at the New York-based bank was $3.872 billion, down 3% from $3.998 billion a year earlier.

Citigroup's (C) second-quarter trading revenue declined less than CFO John Gerspach forecast a month ago, helping the USA bank post profit above analysts' expectations.

Citigroup Inc.'s bond traders and investment bankers are closing in on their rivals at JPMorgan Chase & Co.

"Our institutional clients group had a very strong quarter all-around", Corbat said in a statement announcing the results.

JPMorgan said Friday that it earned a profit of $7.03 billion, or $1.82 per share, compared with $6.20 billion, or $1.55 a share, in the same period a year earlier.

Revenue was $17.901 billion, defying forecasts of a decline from $17.548 billion a year ago, driven by upticks in consumer and corporate banking.




Citigroup (NYSE:C) -0.1% premarket as Q2 earnings and revenues beat estimates, as its trading desk saw a smaller than expected drop-off in activity. Fixed income trading revenue was down 19 percent from previous year while stock trading was mostly flat. The bank reported an 8 percent rise in the money it collects on interest compared to a year ago, which benefited the bank's consumer and commercial banking divisions.

Citi's institutional clients group houses the USA bank's advisory, underwriting and sales and trading businesses, as well as treasury and trade solutions, corporate lending, private banking and securities services.

The net income helped generate additional regulatory capital, lifting the common equity tier 1 (CET1) capital ratio to 13.0% from 12.8% the first quarter, well above the 11.5% Corbat believes is needed to prudently operate the firm.

Revenue in the institutional clients group, run by President Jamie Forese, rose 6 percent to $9.21 billion, pushing the unit's net income up 6 percent to $2.76 billion.

Despite the money set aside for bad loans, Dimon said: "the USA consumer remains healthy".


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