Citigroup, the third largest American bank, closed the third quarter in profit with profits of 3,23 billion dollars, one dollar per share. In the same period last year the bank, due to losses of $2,9 billion related to the brokerage division Morgan Stanley Smith Barney, had recorded profits of $468 million, 15 cents a share.
However, positive 2013 data disappointed analysts who saw a 26% drop in bond trading activity and fixed income activity and a slowdown in mortgage-related activity in the US.
Profit was $1,02, down from $1,06 previously and 2 cents less than expected estimates. Revenues instead grew to 17,88 billion dollars, compared to 13,7 billion in the same period last year. Analysts were expecting a turnover of 18,62 billion dollars.
Revenue from fixed-income businesses, which accounted for about 20 percent of total revenue last year, fell to $2,78 billion. Mortgage refinancing activity fell sharply after yields on 3,5-year loans fell from 4,32% last year to XNUMX% at the end of September.
