Citigroup today reported second-quarter profit that missed analysts' estimates as fixed-income trading revenue plunged and higher bankruptcies depressed North American credit card revenue.
Shares of the world's largest financial services company fell 1.9 per cent in pre-market trade.
Net income more than quadrupled to $5.07 billion, or 97 cents per share, from $1.14 billion, or 22 cents per share, a year earlier.
The 2004 quarter included a charge for legal costs related to WorldCom, Enron, and other corporate scandals, and a gain from the sale of a stake in a Saudi Arabia bank.
Excluding these items, profit fell 5 per cent. Revenue fell 3 per cent to $20.2 billion. Expenses fell 40 per cent, but - excluding the litigation - costs rose 7 per cent.
Analysts on average forecast net profit of $1.01 per share on revenue of $21.08 billion, according to Reuters Estimates. Chief executive Charles Prince called the capital markets environment "one of the worst we have seen in years."
Capital markets and banking profit fell 31 per cent to $1.04 billion. Fixed-income revenue declined 28 per cent, including drops of 55 per cent in interest-rate products and 57 per cent in credit products. Investment banking revenue fell 1 per cent, hurt by lower underwriting fees from junk bonds.