Citigroup bank reported its third quarter profits and revenues on Tuesdays, and the numbers were less than what analysts had predicted. Citigroup’s shares fell over 1%, and the bank hasn’t seemed to be able to cut costs enough that it would make up for a decrease in sales. Citigroup’s revenues also dropped 5% from last year, and its bond-trading unit reported a 26% decrease in third quarter revenues.
CEO Michael Corbat said though the bank “performed relatively well in this challenging, uneven macro environment.” Interest rates rose during the summer, lowering the amount of new mortgages and refinancings for the bank. Even in other parts of the world, where Citigroup is said to have a dominant presence, consumer banking operations fell. Chief financial officer John Gerspach noted that certain regions were concerned that the Federal Reserve would cut back its bond buying program, and that the fear might slow operations there.
