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The
bank, which gets more than half its revenue from outside the
United States, said on Friday its adjusted net income declined
to $4.0 billion in the second quarter ended June 30 from $4.65
billion a year earlier.
Earnings per share slid to $1.24 from $1.45, but beat the
analyst average estimate of $1.10, according to Thomson Reuters
I/B/E/S.
"These results demonstrate our ability to generate solid
earnings in a challenging and volatile environment," Corbat said
in a statement. "Nearly all of our net income came from our core
businesses and we continued to reduce non-core assets in Citi
Holdings."
The drop in Citigroup's profit reflects U.S. banks' struggle
against low interest rates.
After the last rate hike in December - the first in almost a
decade - the U.S. Federal Reserve was widely expected to raise
rates at least twice this year. But Wall Street is now uncertain
there would be any rate hikes this year, especially after
Britain's shock vote to leave the European Union.
Citigroup's adjusted revenue fell 8.4 percent to $17.55 billion,
but beat the average estimate of $17.47 billion.
Net interest margin shrank to 2.86 percent from 2.95 percent a
year earlier. Operating expenses declined 5 percent to $10.37
billion as the bank spent on generating more credit card loans.
Net interest revenue fell 5 percent to $11.24 billion.
Investment banking revenue dropped 5.7 percent to $1.22 billion,
while total markets and securities revenue rose 9.8 percent to
$4.66 billion.
Citigroup, like its rivals, saw a spike in trading volumes after
Britain voted on June 23 to exit the European Union.
JPMorgan Chase & Co <JPM.N> reported stronger-than-expected
trading results on Thursday due in part to high foreign exchange
volumes triggered by the vote.
Citigroup shares were up slightly at $44.50 in premarket trading
on Friday.
(Reporting by Sweta Singh in Bengaluru and David Henry in New
York; Editing by Kirti Pandey)
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