Citigroup projects 25% surge in Q4 investment banking fees amid market resurgence and capital market activity
Updated: Sep 5
Citigroup is heading into the final quarter of 2024 with renewed momentum across investment banking and markets, as a rebound in dealmaking and capital markets activity strengthens the Wall Street lender’s year-end outlook.
Chief Financial Officer Mark Mason said, investment banking fees were expected to rise by 25% to 30% from a year earlier, supported by stronger activity in equity capital markets, debt capital markets and mergers and acquisitions. Citi also expects markets revenue to increase by a high-teens percentage year-on-year, with equities performing particularly well.
Mason at the Goldman Sachs US Financial Services Conference in New York said, "Investment banking fees, those are likely to be up, call it, 25% to 30% year-over-year". He added, "Citi was seeing continued strength in ECM, DCM and in M&A."
The bank also expects to finish 2024 towards the upper end of its $80 billion to $81 billion revenue guidance, reflecting resilience across several parts of the franchise.
Mason said the wider economic backdrop had remained supportive despite persistent uncertainty, with the US economy showing particular strength and both consumer and corporate balance sheets holding up well. Citi has also observed signs of stabilisation in China, while activity in markets such as India, Brazil, Mexico and Japan remains encouraging.
In markets, Mason highlighted continued momentum in equities, particularly prime balances, as client activity remained strong. He said, "We continue to see good momentum in equities, particularly prime balances."
The improved outlook comes as Citigroup continues a sweeping multi-year transformation under chief executive Jane Fraser, aimed at simplifying the bank, strengthening risk controls and improving returns.
With deal pipelines rebuilding and capital markets activity accelerating, Citi enters 2025 with greater confidence that investment banking and trading can provide a stronger contribution to group earnings.