The banking and trading operations at Citigroup will perform well this quarter despite market anxiety caused by U.S. tariffs according to Vis Raghavan who leads the banking division.
During his conference appearance Raghavan predicted banking fees would increase by a mid-single-digit percentage during Q2 2024 compared to Q2 2023 while trading revenue would increase by a mid-to-high single-digit percentage. He observed that M&A remains highly active because both parties maintain active dialogue and strong engagement.
The unpredictable tariff and fiscal policies of President Trump have created market uncertainty which froze certain markets during April. Raghavan observed that stocks have recovered and companies have readjusted to potential 10% to 20% tariffs which led to an increase in market activity.
Citi participated in two significant deals that involved Mars acquiring Kellanova for $35.9 billion and Charter Communications buying Cox Communications for $21.9 billion. The IPO market has seen a comeback of tech and digital asset companies that operate independently from tariff impacts according to his assessment.
The IPO market remains in a state of uncertainty because recent deals performed well yet investors need more market clarity according to Raghavan. The debt market will follow the M&A market trends through acquisition financing activities.
