(Adds details, stock price, background)
NEW YORK May 27 Markets revenue at Citigroup
Inc 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
Gerspach, speaking at an investor conference, blamed
geopolitical events, uncertainty in the global economic
environment and low price volatility for the anticipated revenue
His comments suggested trading revenue for big banks has not
improved since early May when JPMorgan Chase & Co said
it expected a 20 percent decline in second-quarter markets
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
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)