Citigroup Inc fourth-quarter profit fell 11% and missed Wall Street estimates as the European debt crisis battered capital markets trading and discouraged clients from doing deals.
The third-largest US bank by assets reported net income of $1.16 billion, or 38 cents per share, down from $1.31 billion, or 43 cents per share, a year earlier.
Citigroup stock dropped 3% in premarket trading after the results.
Citi said securities and banking revenue fell 29% from the year-earlier quarter, excluding the accounting impact of changes in the value of Citi debt.
The profit drop came in spite of an improvement in the cost for bad loans, which fell nearly $2 billion, or 41%, to $2.9 billion.
