Investment banking giant Citigroup has reported a 17% fall in second-quarter profit on lower revenue from consumer banking; still beating analysts’ estimates as fixed-income trading rebounded and the firm dedicated less money to soured loans.

Jamie Dimon, chairman and CEO of JPMorgan Chase, spent $26.6m (€23.66m) to buy shares of his bank on Thursday after they tumbled to the lowest price in more than two years. Yesterday, the stock surged 8%, the most in more than four years.

Citigroup will pay $7bn to settle an investigation into risky subprime mortgages, the type that helped fuel the financial crisis.

Hundreds more UK bank workers are expected to lose their jobs after US giant Citigroup announced plans to cut 11,000 jobs worldwide.