Citigroup CEO Estimates 25% Drop In Q2 Profits

Amid weak capital markets revenue and higher regulatory costs, Citigroup Inc C CEO Michael Corbat expects a 25 percent drop in second quarter profit.

At an investor conference in New York, Corbat said he expects a flat quarterly profit in the second quarter versus the first quarter of 2016 when the company earned $3.5 billion. This implies a 25 percent decline from $4.65 billion profit it reported on an adjusted basis in the second quarter of 2015.

Citigroup is to post second-quarter results on July 15. Street expects earnings of $1.19 a share on revenue of $17.83 billion. The Street forecast represents a drop of 27 percent in EPS and 6.9 percent in sales.

Shares of Citi were weak on the news. At the time of writing, they fell 3.47 percent to $45.33.