Citigroup recorded a marked decline in its earnings in the second quarter of the year, new figures have revealed.
The major US bank released its statistics for this three-month timeframe yesterday (16 July) and this data indicated that the impact of the ongoing financial crisis was the mainly reason behind its 12 per cent dip in income.
This downward trend was primarily caused by the continuing weak performance of its Citi Holdings unit, which was set up in 2009 in order to control and oversee assets the financier was hoping to get rid of in the wake of the recession.
Over the course of quarter two, the losses of this arm of Citigroup increased to $920 million from a figure of $661 million posted in the corresponding period in 2011.
However, Vikram Pandit, chief executive officer of the bank, insisted: "Our core businesses performed well in a difficult environment and are generating solid returns."
By Asim Shah