Shares of Citigroup, the world's biggest financial services company by market value, dropped on Monday amid disappointing second quarter earnings which fell slightly below analystsâ€™ expectations.
The stock price for the New York-based group closed down 2.48 percent, falling $1.18 to $46.40 per share.
Earlier in the day, Citigroup reported 4 percent profit growth in the second quarter compared to last year. Net income from continuing operations rose 11 percent to $5.27 billion. Revenue also rose by 10 percent to around $22 billion. Earnings per share (EPS) were $1.05 in the quarter.
The results fell slightly short of analystsâ€™ expectations. Thomson Financial had forecasted EPS of $1.06 and revenues of $22.6 billion.
Chairman and CEO of Citibank Charles Prince attributed revenue growth in the second quarter to new consumer branches and its newly launched online bank.
â€œWe added a record number of new consumer branches during the quarter, bringing our total year-to-date new branch openings to 508,â€ Prince said. â€œThe results from our newly launched Citibank e-savings business have been exceptional, with $4.2 billion of deposits since its launch 3 months ago.â€
Citigroupâ€™s net interest margin also dropped from 2.72 percent to 2.68 percent. The net interest margin is the difference between what the bank pays for funds and what customers are charged for loans. The lower margins have also affected competitor banks due to the Federal Reserveâ€™s higher rates monetary policy.