Rocky financial markets took their toll on Citigroup in the quarter. Will other bank giants also be hit?
Citi posted a fourth-quarter profit that exceeded forecasts on Monday morning. However, the bank's revenues were below Wall Street expectations due to a decline in fixed income trading. The Citi (C) stock fell in early trading due to the news, before it was slightly positive.
Bond trading revenues dropped more than 20% year-over-year as markets struggled with the impact of another Federal Reserve rate hike. In a massive understatement, CEO Michael Corbat said in the earnings statement that "a volatile fourth quarter has affected some of our market-sensitive businesses."
Citi is the first major bank to earn its profits in the fourth quarter. So it will be interesting to see if his rivals were similarly hurt by market madness at the end of last year, especially in bonds. JPMorgan Chase (JPM) and Scandal Wells Fargo (WFC) report on Tuesday results. Later this week, the investment banking kings Goldman Sachs (GS) and Morgan Stanley (MS), the Bank of America (BAC) and the ETF giant BlackRock (BLK).