Citi Latest to Warn of Bigger-Than-Expected Trading Drop
- Bank’s shares fall after CFO warns of weakness in fixed income
- JPMorgan had earlier signaled that trading revenue would fall
Photographer: Mark Kauzlarich/Bloomberg
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Citigroup Inc. dropped after Chief Financial Officer Mark Mason signaled that revenue from the bank’s trading operations will probably fall by around 30% from a year ago -- as Wall Street braces for a pandemic-driven boom to run out of steam.
Revenue from the business could drop by a percentage in the low thirties in the second quarter, Mason said Tuesday at a Morgan Stanley virtual conference. That’s a bigger decline than analysts in a Bloomberg survey were anticipating and comes as investment-banking fees could also fall by a percentage in the mid-to-high single digits, he said.