Citigroup Inc said that Morgan Stanley Smith Barney's third-quarter results were flat from the previous quarter.
Reuters first reported Monday that the New York-based banking company, which owns a 49% stake in the brokerage company, told investors during a conference call Monday that the brokerage joint venture's third-quarter results were "comparable" to the second-quarter results because of "weakness across the industry."
"The performance of the Morgan Stanley Smith Barney joint venture in the third quarter was comparable to the second quarter and reflected weakness across the industry," John Gerspach, Citi's chief financial officer said.
Morgan Stanley Smith Barney's assets declined 3.7% from a year earlier to $26 billion as of Sept. 30.
In 2009, Citi swapped its Smith Barney unit and other brokerage businesses for a 49% stake in the joint venture plus $2.75 billion of cash. Citi is expected to sell its stake in Morgan Stanley Smith Barney in an effort to build a more streamlined company.
Morgan Stanley, which owns a 51% stake in the joint venture, is expected to report more information when it releases its quarterly results Wednesday.