The US bank joins a list of others that reported lower net income in the second quarter of this year, reflecting the impact of the coronavirus pandemic.

Citigroup reported a drop in second-quarter 2020 net income yesterday, mirroring results from a number of other major US banks hit by the COVID-19 pandemic. 

The US-listed group, which provides services including private banking, said that Q2 net income stood at $1.316 billion as of 30 June, falling from $4.799 billion a year earlier – a 73 per cent slide. Net income also fell by 48 per cent on the same quarter a year earlier. 

Total revenues stood at $19.766 billion, rising by 5 per cent a year earlier. Net credit losses rose by 12 per cent to $2.206 billion; total cost of credit rose to $7.903 billion, from $2.093 billion a year before.

Within the private banking arm, it logged $956 million in revenues in Q2, a rise of 10 per cent on the same period a year ago. The gain was driven by increased capital markets activity, and higher lending and deposit volumes, partially offset by lower deposit spreads, reflecting the impact of lower rates.

The bank had a Common Equity Tier 1 Capital ratio of 11.5 per cent in the latest quarter, narrower from 11.9 per cent a year earlier.