Citigroup sees investment-banking fees, markets up mid-single digits

Volatility has whipsawed global markets since US President Donald Trump announced tariffs on trading partners around the world

Citigroup said that its third-quarter investment-banking fees and trading revenues are both trending up by percentage points in the mid-single digits, amid volatile markets and a resurgence of deal activity.

“We are seeing good momentum across all of our investment-banking products,” so fees there are expected to be “strong”, chief financial officer Mark Mason said on Tuesday (Sep 9) at a Barclays financial-services conference.

The forecast follows a strong quarter for Citigroup, whose traders posted their best second quarter in five years, buoyed by record trading volumes. Citigroup’s investment-banking unit also reported a bigger-than-expected increase in revenue, with fees rising 13 per cent from last year’s second quarter.

Volatility has whipsawed global markets since US President Donald Trump announced tariffs on trading partners around the world. That’s been good news for the markets businesses at Citigroup and its Wall Street rivals as they benefited from a surge in client activity.

Earlier Tuesday, JPMorgan Chase’s co-head of commercial and investment banking Doug Petno said that the firm’s third-quarter trading revenue could climb by a percentage in the “high teens” from a year earlier, ahead of the 8.2 per cent jump analysts currently expect. Investment-banking fees are also tracking ahead of estimates, expected to rise by a percentage in the “low double digits”, Petno said.

On Monday, Bank of America chief financial officer Alastair Borthwick said his own firm’s investment banking activity is on track to rise 10 to 15 per cent for the third quarter either “in line” or “slightly better” than peers. At the same time, trading revenue is expected to rise mid-single digits compared to a year ago, Borthwick said.

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Citigroup is keeping its full-year guidance, but sees expenses and revenues trending higher for 2025, in part because of activity in its foreign exchange business, Mason said on Tuesday. In July, the bank had lifted its expectations for full-year revenue, saying it would be US$84 billion, the top end of the range it had guided to previously.

While he declined to give updated full-year revenue and expense figures, Mason described the bank’s progress as moving in a “positive direction” with “good momentum”. BLOOMBERG