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.

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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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