Business

Citi profit slips as refinancing slows

NEW YORK — Citigroup said its quarterly earnings fell slightly after a $1 billion drop in revenue from its bond-trading business and a slump in mortgage refinancing.

Net income for the July-to-August period fell to $3.26 billion from $3.27 billion in the same period a year earlier after excluding an accounting gain and other one-time items. The earnings amount to $1.02 per share, compared with $1.06 per share last year.

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Revenue fell to $18.2 billion, compared with $19.2 billion.

The bank said significantly lower mortgage refinancing in the United States contributed to a 7 percent decline in consumer banking revenue. Rising interest rates made it less attractive for consumers to refinance mortgages.

The rising rates also hurt Citi’s securities and banking unit. Revenue at the bond-trading unit slumped 26 percent, to $2.8 billion, as bond yields climbed. Rates rose in anticipation the Federal Reserve would start reducing bond purchases it has been making to stimulate the US economy.

Associated Press

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