Citigroup Inc, the No. 3 U.S. bank by assets, reported a 51% jump in quarterly profit as lower costs more than made up for a fall in revenue amid increased market volatility and uncertainty about the timing of a U.S. interest rate hike.
Profits have soared since the global financial crisis at the five biggest U.S. banks with market-making dealing operations, New York Federal Reserve economists said in an article released on Wednesday.
A weak performance in September could leave investment banks' revenues in the third quarter down about 10% from a year ago, putting 2015 revenues on track to fall from a year ago and intensifying pressure on European firms to scale back.
Tom Hayes, a former trader on trial for allegedly conspiring to rig benchmark interest rates, has admitted to being motivated by greed and was fired by U.S. bank Citigroup in 2010, the prosecution told a London court on Tuesday.