Citi sees quarterly investment banking slide, markets business rise

Men and women wander beneath a Citibank branch brand in the financial district of San Francisco, California July 17, 2009. REUTERS/Robert Galbraith/File Photograph

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June 15 (Reuters) – Citigroup (C.N) international head of marketplaces Andy Morton instructed an investor meeting on Wednesday that he envisioned a decline of as a great deal as 55% in the bank’s investment decision banking business enterprise this quarter and an increase of more than 25% in its marketplaces company.

Citi was outperforming the S&P 500’s financial institution index (.SPXBK), up 1% on the day, with the firm’s shares past up 2.6% at $47.14 wanting established for its 2nd straight working day of gains just after a 4-day provide-off in which it dropped more than 12%.

Morton, speaking throughout the webcast of a Morgan Stanley meeting, mentioned a slump in issuance and in mergers and acquisitions (M&A) owing to the macro economic and geopolitical problem were being driving the expenditure banking decrease.

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“Our perception is that the wallet is down 50%-55% in expense banking, and our assessment is that we are likely to come in suitable around that individuals sort of ranges,” Morton mentioned.

But he reported Citi’s marketplaces company was a unique tale thanks to market volatility throughout all belongings together with commodities and international trade, one of its critical segments.

Morton reported his present estimate was for a next-quarter 12 months-over-calendar year earnings raise “north of 25%” in marketplaces, whilst the executive said volatility also meant the situation could alter rapidly.

“Just offered the volatility, you know, even in two months, when you’re getting moves like we are owning in the past few times or so, that number could definitely fluctuate,” he claimed, including corporate exercise was up about a third for the next quarter.

Considering that Citi’s mounted money marketplaces business was significantly bigger than its equity enterprise, the govt said Citi was hunting for “reduced hanging fruit” to grow in equities, which include in search of to secure equities business enterprise from its fixed profits shoppers.

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

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