Citi sees quarterly investment banking slide, markets business rise

Men and women walk beneath a Citibank department logo in the fiscal district of San Francisco, California July 17, 2009. REUTERS/Robert Galbraith/File Picture

June 15 (Reuters) – Citigroup (C.N) worldwide head of markets Andy Morton advised an investor meeting on Wednesday that he anticipated a decrease of as a great deal as 55% in the bank’s financial investment banking company this quarter and an boost of over 25% in its marketplaces business enterprise.

Citi was outperforming the S&P 500’s lender index (.SPXBK), up 1% on the day, with the firm’s shares final up 2.6% at $47.14 wanting established for its second straight day of gains immediately after a four-working day market-off in which it dropped a lot more than 12%.

Morton, speaking for the duration of the webcast of a Morgan Stanley conference, said a slump in issuance and in mergers and acquisitions (M&A) due to the macro financial and geopolitical circumstance have been at the rear of the expenditure banking drop.

“Our belief is that the wallet is down 50%-55% in expense banking, and our evaluation is that we’re heading to come in suitable all-around that all those kind of stages,” Morton said.

But he claimed Citi’s marketplaces business enterprise was a different story due to marketplace volatility across all assets like commodities and overseas exchange, one particular of its vital segments.

Morton mentioned his present-day estimate was for a next-quarter calendar year-over-12 months income maximize “north of 25%” in marketplaces, though the executive claimed volatility also intended the condition could alter rapidly.

“Just offered the volatility, you know, even in two months, when you happen to be getting moves like we are acquiring in the last few days or so, that selection could certainly fluctuate,” he mentioned, introducing corporate action was up about a 3rd for the 2nd quarter.

Because Citi’s mounted earnings markets small business was a great deal bigger than its fairness small business, the government explained Citi was seeking for “small hanging fruit” to extend in equities, such as in search of to secure equities business enterprise from its preset income clients.

Reporting by Noor Zainab Hussain and Sinéad Carew Modifying by Edmund Blair

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