Citigroup swings to profit on trading strength, surging deals

CITIGROUP swung to a profit in the fourth quarter, fuelled by strength in trading and a recovery in dealmaking that drove up investment banking fees.

Trading desks at the banks benefited from a banner year in US equities, with the S&P 500 touching record-high levels in the fourth quarter.

Markets revenue at Citi jumped 36 per cent to US$4.6 billion in the quarter.

Wall Street’s dealmakers have also cashed in on a revival in mergers, acquisitions and initial public offerings after an almost three-year-long dry spell. Banks’ capital markets businesses got a boost in the second half of 2024 as corporate clients issued more debt and equity.

Industry executives expect the momentum to continue this year as the Federal Reserve cuts interest rates and President-elect Donald Trump takes office. He has vowed to implement more pro-business policies.

The third-largest US lender reported a net income of US$2.9 billion, or US$1.34 per share, for the three months ended Dec 31 on Wednesday. That compares with a loss of US$1.8 billion, or US$1.16 per share, a year earlier. REUTERS