Citigroup share price tumbles after company announces 15 per cent first-quarter drop in revenue from trading in equity and fixed-income markets

William Turvill
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Citigroup expects a 15 per cent drop in revenue from its equity and fixed-income markets (Source: Getty)

Citigroup's shares fell today after its chief financial officer said revenue from trading in equity and fixed-income markets is expected to drop 15 per cent in the first quarter of 2016.

John Gerspach also revealed investment banking revenue is expected to fall 25 per cent year on year.

Read more: Citi shares slide despite better than expected results

Shares in the firm had fallen 2.6 per cent to $41.50 at just after 2pm in New York.

Announcing the expected revenue falls, Gerspach said: "There’s been some market volatility early in 2016. That has certainly impacted the level of activity across both markets as well as banking."

Read more: Citi: Doom! "Oilmegaddon" could spark global recession

Bloomberg reports that JP Morgan Chase has also warned about a tough first quarter for Wall Street, impacted by low interest rates, plunging commodity prices and stock market volatility.

JP Morgan Chase last month reported a 20 per cent drop in revenue from sales and trading this year.​

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