Citigroup Sees Third-Quarter Trading Revenue on Pace to Fall 15%

Citigroup Inc.’s trading revenue is on pace to drop 15 percent in the third quarter from a year earlier as volatility remains “somewhat subdued,” Chief Financial Officer John Gerspach said.

Last year’s performance benefited from a boost in activity as clients wagered on the prospects for the U.S. election, while this quarter has seen no comparable catalyst, Gerspach told investors Monday at a conference hosted by Barclays Plc in New York. The last three weeks of this month could swing the quarterly results, he said.

The biggest investment banks posted declines in trading revenue in the second quarter as volatility dropped and as asset managers waited to see if central banks would raise interest rates and Donald Trump’s administration could enact any of its policy goals. The calm markets helped many banks’ other businesses, including wealth management.

Citigroup had $4.46 billion of trading revenue in the third quarter of last year, according to Bloomberg Intelligence. A 15 percent drop would mean revenue of $3.8 billion, the lowest since 2015.

“For the whole third quarter you really don’t know what happens until you figure out what the operating environment is in September,” Gerspach said.

— With assistance by Jennifer Surane

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