Citi Latest to Warn of Bigger-Than-Expected Trading Drop

Citigroup Inc. dropped after Chief Financial Officer Mark Mason signaled that revenue from the bank’s trading operations will probably fall by around 30% from a year ago — as Wall Street braces for a pandemic-driven boom to run out of steam.

Revenue from the business could drop by a percentage in the low thirties in the second quarter, Mason said Tuesday at a Morgan Stanley virtual conference. That’s a bigger decline than analysts in a Bloomberg survey were anticipating and comes as investment-banking fees could also fall by a percentage in the mid-to-high single digits, he said.

The current quarter is “a very different place than we were a year ago,” Mason said, noting strength in the firm’s equities trading business would be offset by a weaker performance in the fixed income unit.

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Citigroup shares fell 1.8% to $73.82 at the close of trading on Tuesday. The stock has jumped 20% this year compared with the 26% advance of the 65-company S&P 500 Financials Index.

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