Citigroup’s John Gerspach Warns Volatility Could Hinder 2018 Targets
- Bank won’t meet guidance on efficiency ratio, Gerspach says
- Revenue hurt by a slowdown in Group of 10 rates-trading unit
Citigroup Inc. signage is displayed outside a bank branch in San Francisco.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Citigroup Inc. said it probably won’t meet a closely watched profitability target this year because market volatility crimped fourth-quarter trading revenue.
Chief Financial Officer John Gerspach said sluggishness in its Group of 10 rates-trading business likely means the bank will post a drop in fixed-income trading revenue for the final three months of the year. The investment-banking franchise also was under pressure from a decline in investment-grade debt underwriting and a slowdown in equity issuance, Gerspach said Wednesday at a conference sponsored by Goldman Sachs Group Inc.