Citi sees quarterly investment banking slide, markets business rise

Persons wander beneath a Citibank branch symbol in the money district of San Francisco, California July 17, 2009. REUTERS/Robert Galbraith/File Picture

June 15 (Reuters) – Citigroup (C.N) world-wide head of marketplaces Andy Morton informed an investor meeting on Wednesday that he predicted a decrease of as significantly as 55% in the bank’s expenditure banking company this quarter and an boost of around 25% in its markets business.

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

Morton, talking during the webcast of a Morgan Stanley meeting, reported a slump in issuance and in mergers and acquisitions (M&A) thanks to the macro financial and geopolitical problem have been behind the investment banking decrease.

“Our perception is that the wallet is down 50%-55% in expenditure banking, and our evaluation is that we’re likely to arrive in suitable all over that individuals kind of concentrations,” Morton said.

But he claimed Citi’s marketplaces business enterprise was a distinctive tale because of to sector volatility across all belongings like commodities and overseas trade, 1 of its crucial segments.

Morton claimed his present-day estimate was for a next-quarter 12 months-over-year profits enhance “north of 25%” in marketplaces, although the executive explained volatility also meant the circumstance could modify speedily.

“Just offered the volatility, you know, even in two weeks, when you are obtaining moves like we are getting in the previous few days or so, that quantity could obviously fluctuate,” he reported, including corporate activity was up about a 3rd for the second quarter.

Because Citi’s set earnings marketplaces business was a lot more substantial than its equity organization, the executive explained Citi was looking for “low hanging fruit” to expand in equities, which include searching for to secure equities business enterprise from its preset earnings shoppers.

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

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