Citigroup profit drops 36% as trading slump casts cloud over earnings

(Reuters) -Citigroup’s profit tumbled 36% in the second quarter as weakness in the Wall Street bank’s trading business blunted gains from its personal banking and wealth management unit.

Wall Street traders have hit a rough patch, joining investment bankers whose businesses have been weighed down for months by a slump in dealmaking.

Citi’s markets revenue fell 13% to $4.6 billion on more subdued activity in fixed income and equities, while its investment banking fees plunged 24% to $612 million.

Net income sank to $2.92 billion, or $1.33 per share, in the three months to June 30, the bank reported on Friday. That compares with $4.55 billion, or $2.19 per share, a year earlier.