The name’s bond: Citigroup fourth quarter results lifted thanks to fixed income division
Citigroup has reaped the rewards of the bond market trading boost following the election of Donald Trump, alongside its US rivals such as Goldman Sachs.
The bank's net income for the fourth quarter of 2016 came in at $3.6bn (£2.69bn) as compared to $3.3bn the year before – a rise of nine per cent.
Read more: Goldman more than triples profits in fourth quarter
Revenues came in at $17bn, down nine per cent from $18.5bn the year before, due to disposals.
Revenues in its fixed income division jumped 36 per cent to $3bn, with equity markets revenue climbing 15 per cent; total markets and securities services revenue was boosted by 24 per cent as compared to the same quarter the year before.
Citigroup's share price was down 1.73 per cent at time of writing.
Michael Corbat, Citigroup's chief executive, said:
We had a strong finish to 2016, bringing momentum into this year. We drove revenue growth in our businesses and demonstrated strong expense discipline across the firm.
Citibank's success follows a raft of bumper trading updates from Wall Street. Goldman Sachs more than tripled its profits in the fourth quarter on the back of bumper bond trading after the U.S. election. Its revenue from fixed-income trading was up around 78 per cent.
Yesterday, Morgan Stanley posted its biggest fourth-quarter profit since the financial crisis, doubling its profits on the surge in bond trading.