Citigroup confirmed fears that investment banks were badly hit by a drop-off in activity in the final three months of 2011 – after its securities and banking division reported its first quarterly loss since 2008 following a halving in net revenues.

Citi reported that revenues in the division for the fourth quarter of 2011 were $3.2bn, which was down from $6.7bn in the previous three months - a 53% drop. It was also down on the $3.5bn revenues made in the same period the previous year.