Citi and Wells Fargo both report fall in profits

Citigroup and Wells Fargo became the latest of the US big six banks to report quarterly figures. Wells Fargo, the world's most valuable bank, said second-quarter profit fell 2.8 per cent as more energy loans soured, expenses rose and revenue from mortgage lending declined. Net income slid to $5.6 billion, or $1.01 a share, from $5.72 billion, or $1.03, a year earlier, the company said yesterday in a statement, matching analyst estimates.

Citigroup’s second-quarter profit fell 17 per cent on lower revenue from consumer banking, but beat analysts’ estimates as fixed-income trading rebounded and the firm set aside less money for soured loans.

Net income dropped to $4 billion, or $1.24 a share, from $4.85 billion, or $1.51, a year earlier, the company said yesterday. – (Bloomberg)