Citigroup’s securities and banking division made a loss of $2.7bn (€1.7bn) in the second quarter compared to a profit of $2.9bn a year ago, as the business continues to be rocked by writedowns relating to its exposure to the ructions in the fixed-income and credit markets.

In reporting its third straight quarterly loss in the securities and banking division, the fixed-income capital markets operations was the hardest hit, reporting a loss of $633m in the quarter.