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Citigroup adjusted profit hit by bond trading slowdown

October 15, 2013

By Ted Kerr, David Henry; New York and Tanya Agrawal; Bangalore

(Reuters) – Citigroup Inc <C.N> reported a marginal fall in adjusted quarterly profit from ongoing businesses after the Federal Reserve’s decision to continue its bond-buying program for longer than expected slowed trading by clients.

Third-quarter net income, adjusted for certain items, slipped to $3.26 billion, or $1.02 per share, from $3.27 billion, or $1.06 per share a year earlier, the third-largest U.S. bank said on Tuesday.

Adjustments excluded a loss in the prior year related to the sale of the bank’s interest in brokerage Morgan Stanley Smith Barney, as well as the impact of tax benefits and changes in the value of Citigroup debts and those of trading partners.

Under generally accepted accounting principles, net income rose to $3.23 billion, or $1.00 per share, from $468 million, or 15 cents per share, a year earlier.

(Reporting by David Henry in New York and Tanya Agrawal in Bangalore; Editing by Ted Kerr)