Citi earnings weaker but results beat estimates
Investment bank Citi saw quarterly profits plunge 27% in the first quarter to $3.5bn, although figures from the New York firm topped estimates from Wall Street analysts.
Revenues across the group slid 11% between January and March to $17.5bn, above the $17.46bn predicted in a Thomson Reuters poll, while operating expenses decreased 3% to $10.5bn.
The bank’s institutional client group posted a 12% revenue decline to $8bn, driven by a 15% decrease in markets and securities services revenues and a 9% drop e in banking revenues.
Citi had already tempered expectations somewhat for the quarter, warning that its markets businesses would be weak compared with last year.
Fixed income markets revenues totalled $3.1bn, down 11% compared with first quarter of 2015 while equity markets revenues dropped 19% to $706m.
Global equities experienced a torrid start to the year as investor concerns over China’s currency, a possible US recession, falling commodity prices and worries about central bank credibility led to a broad-based sell-off.
"While our market-sensitive products clearly suffered from weak investor sentiment during the quarter, we continued to make progress in several key areas,” said Michael Corbat, chief executive officer of Citi.
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