Citigroup just released its second quarter earnings results, which beat Wall Street analysts' expectations.
Trading, however, got crushed during the second quarter.
On Wall Street, folks have been anticipating weaker trading. Desks at the banks have been quiet due to low volatility and low volume in the market.
During the second quarter, Citi saw its fixed income trading fall 12% and equity trading tank by 26%.
Here's a breakdown of just how ugly trading was during the quarter:
Markets and Securities Services revenues of $4.1 billion (excluding negative $31 million of CVA/DVA, versus positive $461 million in the second quarter 2013) declined 16% from the prior year period. Fixed Income Markets revenues of $3.0 billion in the second quarter 2014 (excluding negative $36 million of CVA/DVA) declined 12% from the prior year period reflecting historically low volatility and continued macro uncertainty, which led to lower market volumes, as well as the impact of gains in the prior year period. Equity Markets revenues of $659 million(excluding positive $4 million of CVA/DVA) were down 26% versus the prior year period, reflecting lower client activity and weak trading performance in EMEA. Securities Services revenues were roughly flat versus the prior year period as higher client activity was offset by a reduction in high margin deposits.
Meanwhile, investment banking activity is up year-over-year.
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