The net profit of Citigroup Inc. for the second quarter of 2016 declined by 17% due to lower revenues from retail banking. However, the bank surpassed analysts’ expectations, after trading in financial instruments with fixed income recovered and were set aside less money for bad loans. Net income decreased to 4 billion USD from 4.85 billion USD a year earlier. In early June, CEO Michael Corby predicted profit of nearly 3.5 billion USD during the quarter. Citigroup joins JPMorgan Chase & Co., which announced results Tuesday navigation market turmoil after the shocking decision of the United Kingdom on 23 June to leave the European Union.
The 56-year-old Corby spent years trying to deal with problem assets, control the reorganization and shrinking the focus of the bank’s markets with acceptable returns. “These results demonstrate our ability to generate stable profits in a challenging and volatile environment”, he said.
Revenue decreased by 8% to 17.5 billion USD, while costs are down by 5% to 10.4 billion USD. Both indicators coincided with analysts’ estimates. Costs related to loans fell 15% to 1.41 billion USD after the period less loans were in arrears and bank reserves move in the division for bad assets. Citi Holdings, the division of unwanted assets put up for sale is a profit for the eighth consecutive quarter financial result of 93 million USD.