Citigroup Sees Investment-Banking Fees and Trading Revenue Rise Amid Volatility

Strong Q3 Momentum

Citigroup reported that its third-quarter investment-banking fees and trading revenues are trending up in the mid-single digits. The bank’s Chief Financial Officer, Mark Mason, highlighted the strong momentum across all investment-banking products during a Barclays financial-services conference on September 9. He noted, “We are seeing good momentum across all of our investment-banking products,” signaling robust fee growth.

Record Trading Volumes Boost Revenue

The forecast follows a strong performance in the previous quarter. Citigroup traders posted their best second quarter in five years, supported by record trading volumes. The investment-banking unit reported a 13% year-over-year increase in fees for the second quarter, surpassing expectations. This growth reflects heightened deal activity and client engagement.

Market Volatility Drives Activity

Global market volatility has surged since US President Donald Trump announced tariffs on key trading partners. While uncertainty generally challenges markets, it has benefited Citigroup and its Wall Street peers, driving more client transactions and trading revenue.

Peer Comparisons Show Positive Trends

Other major banks also reported robust trading and investment-banking growth. JPMorgan Chase expects its third-quarter trading revenue to climb in the high teens, exceeding analysts’ expectations of 8.2%. Investment-banking fees are projected to rise in the low double digits, according to co-head Doug Petno. Meanwhile, Bank of America anticipates a 10–15% increase in investment-banking activity, with trading revenue expected to grow mid-single digits.

Full-Year Guidance Remains Steady

Citigroup continues to maintain its full-year guidance, projecting $84 billion in revenue for 2025—the top end of its previous range. Mason noted that both expenses and revenues are trending higher, partly due to activity in the bank’s foreign exchange business. He described the progress as “moving in a positive direction” with sustained momentum.

Outlook

As investment-banking fees and trading revenues continue to rise, Citigroup is positioned to capitalize on both market volatility and increased deal activity. Analysts expect this trend to support the bank’s 2025 performance, keeping it competitive with peers like JPMorgan Chase and Bank of America.

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