Tomahawk, WI 9/24/2013 (BasicsMedia) – There is real belief in the industry that when Citigroup Inc (NYSE:C) next announces its financial results, which should be around October 15,  there will be disappointment. This is based on the realization that the company has not really enjoyed the sort of increase or even stability it had been looking forward to in terms of trading revenue. Why? The company says that its markets business has experienced a sort of retardation and this has played a major role in reducing the trading revenue. This is but only one of the things expected to be announced by C.

 Citi’s Income Falls by 10%

It is expected that Citigroup’s income will also experience a decline by as much as 10%, or more. When the company announces or releases its third quarter 2013 financial results, you should not expect wonderful news. However, just to get a better appreciation of the facts, this is not to say that the company will not be releasing positive news to the effect that it has outperformed what the market expects going forward. There is a real chance that the poor financials which are expected from C, will only be limited to this quarter and no other.

 For a company with such huge assets such as Citigroup, and which is ranked among the top three largest in the U.S based on assets, every time it releases its financials, various factors are often at play. The baking and financial sector is one which us quit volatile. It is in this latest quarter that the company has announced that it intends to get rid of close to a 1,000 of its employees working within the mortgage department. From this announcement, one can clearly tell that C hasn’t performed admirably in its mortgage services and the results won’t be good as well.

 Citi’s Huge Exposure Comes Back to haunt it

 There isn’t another bank in the U.S, especially those considered large such as Citi, Bank of America and JPM among others, which has a much bigger exposure than C. Banks trading in these markets have not fared too well. The experiences of these banks in terms of capital flight, and not forgetting what has befallen them regarding currencies whose values keep declining, have prepared them for not-so-pleasant news or results. Apparently, this is what C is expected to contend with when it announces its third quarter 2013 financial results.

 However, worth pointing out is the fact that Citigroup has said it has not given up hope on last minute trading from the many markets it is involved in. If this was to happen, there is likelihood that the results may not be as bad as they now appear . Last minute dash from investors and clients of Citigroup may make it possible for this bank to post what may not be very impressive results, but still good enough compared to what might otherwise have been declared. It may not be possible to know everything which the bank and its top executives know on Citigroup.

Citigroup has been one of the largest banks in the U.S which has made earnings outside what is considered banking business in the past. This is still going to be the case for some time, but I foresee a situation where this may change.

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