He told investors to expect a 12 percent to 13 percent drop in trading revenue. Equity markets revenue increased 10% year-over-year to $US769 million in the first quarter, while revenue from branded cards rose by 13% year-on-year to $US2.1 billion.
Citi's institutional clients group houses the U.S. bank's advisory, underwriting and sales and trading businesses, as well as treasury and trade solutions, corporate lending, private banking and securities services.
Net income fell 3% $3.9bn as the slightly higher revenues were outweighed by higher cost of credit and operating expenses, as well as a higher effective tax rate.
Revenues, meanwhile, are forecast to be down five per cent, from $7.93bn to $7.52bn. Analysts had expected $1.21 a share.
As June started, Corbat said his firm was facing the same slump client activity that already had prompted executives at JPMorgan and Bank of America Corp.to lower their shareholders' expectations.
The final weeks of the quarter also provided other relief for Corbat.
The bank said Friday that it paid out 63% of its quarterly income in the form of dividends and share buybacks. This came on the back of low volatility and higher trading activity around Brexit a year earlier.
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Citigroup suffered a drop in revenues from both equities and fixed income trading in the second quarter, but a record performance in investment banking helped offset the fall.
At Citigroup, total revenue rose 2 percent to $17.9 billion, surpassing the $17.4 billion average estimate of analysts.
The largest USA residential mortgage lender recorded an 18.8 percent fall in mortgage banking income to $1.15 billion.
That helped the institutional clients group post a slight year-on-year rise in net profits, despite the trading declines. JPMorgan, its closest rival in mortgage banking, posted a 41 percent decline in mortgage fees and loan servicing revenue. Revenue at the consumer unit rose 5% to $8.035 billion from $7.674 billion a year ago.
Fixed-income trading revenue fell 6%, while equity trading revenue dropped 11%. Money set aside to cover bad loans jumped 24 percent to $1.76 billion.
Citi's global consumer banking division earned $1.13 billion, down 12 percent from a year earlier.
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