Citi sees quarterly investment banking slide, markets business rise

Individuals wander beneath a Citibank department brand in the monetary district of San Francisco, California July 17, 2009. REUTERS/Robert Galbraith/File Photo

June 15 (Reuters) – Citigroup (C.N) international head of marketplaces Andy Morton instructed an investor convention on Wednesday that he predicted a decline of as considerably as 55% in the bank’s investment banking company this quarter and an increase of about 25% in its markets enterprise.

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

Morton, speaking throughout the webcast of a Morgan Stanley conference, stated a slump in issuance and in mergers and acquisitions (M&A) owing to the macro financial and geopolitical scenario have been guiding the financial commitment banking decline.

“Our belief is that the wallet is down 50%-55% in financial commitment banking, and our assessment is that we are heading to arrive in proper all-around that individuals sort of concentrations,” Morton stated.

But he said Citi’s markets business enterprise was a different story owing to industry volatility across all property including commodities and foreign trade, 1 of its vital segments.

Morton stated his existing estimate was for a second-quarter year-in excess of-calendar year earnings increase “north of 25%” in marketplaces, although the government reported volatility also meant the situation could change speedily.

“Just given the volatility, you know, even in two weeks, when you’re getting moves like we’re getting in the final handful of days or so, that variety could of course fluctuate,” he mentioned, incorporating corporate exercise was up about a 3rd for the second quarter.

Because Citi’s set money marketplaces organization was much even bigger than its fairness company, the govt said Citi was searching for “small hanging fruit” to develop in equities, such as in search of to secure equities enterprise from its fastened money clients.

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

Our Requirements: The Thomson Reuters Have confidence in Ideas.