Citi Sees Trading Revenue Down by Percentage in Low to Mid Teens
(Bloomberg) -- Citigroup Inc. Chief Financial Officer Mark Mason said third-quarter trading will probably decline by a percentage in the low to mid teens from a year earlier.
The forecast for revenue from trading stocks and fixed-income products compares with the 15% slide analysts in a Bloomberg survey had been expecting. The bank is seeing bright spots in equities, especially within its prime business, Chief Financial Officer Mark Mason said at a conference hosted by Barclays Plc Tuesday.
Wall Street’s biggest trading floors have been contending with a sharp drop in volatility in recent months that has hampered activity across asset classes. This quarter’s results also pale in comparison to the same period in 2020, when markets were rocked by the onslaught of the coronavirus pandemic.
While trading activity remains muted, investment bankers are benefiting from a deal bonanza. Mason said Citigroup’s investment-banking business is turning in a strong performance.
JPMorgan Chase & Co. said earlier Tuesday that trading and investment-banking results would be better than the firm’s previous forecasts for the third quarter. Markets revenue will probably be down 10% from a year earlier and investment-banking fees will rise, Marianne Lake, co-head of the firm’s consumer and community bank, said at the Barclays conference.
©2021 Bloomberg L.P.