Citigroup Joins JPMorgan, BofA in Forecasting Trading Gains

Updated on
  • CFO says trading revenue to rise about 20% year-over-year
  • Wall Street sees trading gains in typically slowest quarter

Citigroup Inc. joined its largest rivals in signaling higher revenue from trading in the year’s final months after the U.S. presidential election prompted investors around the globe to shift holdings, roiling markets.

Revenue from the business will probably be up about 20 percent in the fourth quarter compared with a year earlier, Chief Financial Officer John Gerspach, 63, said Wednesday at a conference in New York.

Citigroup follows Wall Street titans JPMorgan Chase & Co. and Bank of America Corp. in forecasting a jump in revenue from operations that help clients speculate. The surprise victory of President-elect Donald Trump last month raised expectations for higher interest rates, lighter U.S. regulation, lower corporate taxes and a fight over international trade, jarring bonds, stocks and currencies around the globe.

At JPMorgan, revenue from trading is up at least 15 percent compared with the same period last year, Chief Executive Officer Jamie Dimon said Tuesday at the same New York conference hosted by Goldman Sachs Group Inc. About an hour later, Bank of America CEO Brian Moynihan said fixed-income sales and trading revenue at his company has increased about 15 percent in the period. He didn’t provide an overall trading figure.

In other areas, Gerspach said Citi Holdings, the portfolio of assets the bank is trying to sell, will likely post a modest loss in the fourth quarter as some deals get pushed into the first quarter of 2017. The bank previously said it expected the unit to break even.