Citi had significant drop in trading revenue: FT
NEW YORK (Reuters) - Citigroup (C.N) had a significant drop in trading revenue during the third quarter which could hurt the bank's earnings, the Financial Times reported on Sunday, citing people familiar with conversations between investors and the bank.
According to the report, the bank told investors that there was a worse-than-expected slowdown in markets businesses over the summer. The FT said that some investors believe Citigroup's revenue will fall over 10 percent.
Citigroup declined to comment on the report. The company is due to announce its third-quarter earnings on October 15.
In the second quarter, Citigroup posted a 42-percent jump in profit as bond trading revenue gained and stronger home prices helped the bad mortgages on its books.
The third-largest U.S. bank is getting its house in order after years of management problems forced it to seek three U.S. bailouts in 2008 and 2009. Current Chief Executive Michael Corbat and predecessor Vikram Pandit cut risk-taking in its trading businesses, hired selectively in safer areas like investment banking, and scaled back in markets where the bank had few growth opportunities.
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