Citigroup sees second quarter markets revenue down as much as 25 percent: CFO
NEW YORK (Reuters) - Markets revenue at Citigroup Inc (C.N) is expected to decline between 20 and 25 percent in the second quarter from a year earlier because of lackluster fixed-income trading, Chief Financial Officer John Gerspach said on Tuesday.
Gerspach, speaking at an investor conference, blamed geopolitical events, uncertainty in the global economic environment and low price volatility for the anticipated revenue drop.
His comments suggested trading revenue for big banks has not improved since early May when JPMorgan Chase & Co (JPM.N) said it expected a 20 percent decline in second-quarter markets revenue.
Daniel Pinto, head of JPMorgan's corporate and investment bank, left that earlier outlook in place when he spoke at the same conference earlier on Tuesday.
Gerspach also said Citigroup still expected revenue from consumer banking to be about $9.3 billion, or flat with the first quarter.
Citigroup core expenses, excluding legal and repositioning costs, are expected to be "somewhat lower" than in the first quarter. Legal and repositioning costs will be similar to the first quarter at around $1.1 billion, though a smaller portion of that is likely to be for litigation, Gerspach said.
In response to a question, Gerspach said he expected the company will report no additional expenses from the receivables loan fraud in Mexico that it reported earlier this year.
Citigroup shares were up a fraction of one percent at $47.50 in afternoon trading on the New York Stock Exchange, about 65 cents lower than before Gerspach's comments.
(Reporting by David Henry in New York; Editing by Paul Simao)