Citigroup, the US banking giant which twice had to be bailed out by American taxpayers, has been losing market share on Wall St, its latest results reveal.
A sharp slide in revenues from its bond trading desks shocked investors, sending shares down more than 6 per cent in New York trading. The bank has also fallen from fourth to eighth place in the league tables of mergers and acquisitions advisers.
Chief financial officer John Gerspach said while it had been "one of the weaker quarters for trading", a single quarter "doesn't make a trend" and the bank was looking for new staff to change its fortunes.
Overall, Citigroup reported a net profit of US$1.3b ($1.67b) for the final three months of 2010.
It was the bank's fourth consecutive quarterly profit, but earnings per share were 50 per cent below expectations.
Fixed-income trading revenue alone dropped 58 per cent from the third quarter - compared with a 7.9 per cent drop at rival JPMorgan Chase.
Citigroup's performance is likely to put it among the banks losing most market share. The bank has been working to slim down its bloated balance sheet, sell off underperforming assets and regroup around core growth businesses, particularly overseas.
- INDEPENDENT
Revenue slide puts Citigroup into slump
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