Citi’s fixed income and equities revenues slump in Q1

Citi’s investment banking unit revenues were down 27% in Q1 2016 compared to the same period last year.

Citi’s first quarter results for 2016 revealed a decline in fixed income and equities revenues, as its investment banking business suffers difficult quarter.

Fixed income revenues in Q1 2016 totalled $3.09 billion, an 11% reduction from last ear’s first quarter when revenues reached $3.48 billion.

Citi’s equities sales suffered an even larger decline, with Q1 2016 revenues down 19% to $706 million compared to the same period last year.

Last month, Citi’s chief financial officer, John Gerspach, warned that fixed income and equities revenues would each be down approximately 15% in Q1 2016.

The bank’s investment banking unit had a difficult first quarter overall.

Revenues were down 27% to $875 million in Q1 this year, compared to just over $1.2 billion in the same period in 2015.

The report explained the declines in investment banking revenues primarily reflect “lower industry-wide activity during the current quarter”.

Chief executive officer at Citi, Michael Corbat, said “… our market-sensitive products clearly suffered from investor sentiment during the quarter…”

However, Corbat stressed the group is focused on reducing expenses and growing core business areas.

Citi is one of the latest bank’s to announce job cuts, with 70 staff members facing the chop in its London office.  

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