Citigroup Inc. said third-quarter markets revenue will be up in the “mid single digits” range from a year earlier, led by rates and currencies trading.
The increase in trading revenue exceeded Citigroup’s earlier expectations, Chief Financial Officer John Gerspach said Wednesday at a conference in New York. Investment-banking revenue is coming in a “little lighter than estimated,” he said.
Wall Street is benefiting from increased volatility as traders prepare for a Federal Reserve rate increase. Policy makers meet Sept. 20-21 to consider raising rates for the first time since December. Solid employment reports in recent months, coupled with modest wage gains, have led to calls from some officials for an increase in the target range.
Bank of America Corp. said Monday it’s seen an increase in mergers and acquisitions in recent months, along with improvements in high-yield debt and leveraged finance. Christian Meissner, global head of corporate and investment banking, said the company expects to gain share in capital markets and underwriting, matching success it’s had in selling deals advice.