Citigroup's Chief Financial Officer John Gerspach confirmed during an earnings call Monday that his firm was confident that it could avoid massive job losses, as it continued to navigate challenging market conditions.
Citigroup reported second-quarter profit that beat analysts’ estimates on revenue from advising on mergers and underwriting stocks and bonds.
Revenue from advising clients on mergers and acquisitions helped Chief Executive Officer Vikram Pandit, 55, manage declines in trading stocks and bonds amid fallout from the European sovereign-debt crisis. Citigroup’s 21% drop in investment-banking revenue was smaller than the 35% decline JPMorgan Chase reported last week. Citigroup’s stock slid 25% during the period, the worst performance among the biggest U.S. lenders, as regulators struggled to contain the crisis in Europe.
'While Citigroup’s shares are again trading in line with broader euro zone developments, the company’s underlying fundamentals continue to evidence improvement', Jason Goldberg, an analyst at Barclays Plc, wrote in a July 9th note to clients. The bank has 'moved toward a more customer-driven model and run down its legacy problem assets, which should ultimately reduce its risk and free up capital'.
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