Citigroup’s markets and securities service business posted a surge in revenues, following a successful second quarter in fixed income trading.
Total revenues across the markets business were up 10% this quarter compared to the second quarter last year, bolstered by fixed income revenues.
Fixed income revenues surged 14% totalling $3.5 million compared to just over $3 billion in the second quarter last year.
Citi said the fixed income result was “driven by an increase in corporate client activity in rates and currencies as well as a better trading environment in the current quarter.”
Equities income came in 21% higher than the second quarter last year, with revenues reaching $788 million, an increase of $82 million.
The figure for equities, however, included a “previously disclosed charge to revenues of $175 million for valuation adjustments related to certain financing transactions.”
Disregarding the disclosed charges, equities were down 4% “driven by lower market activity as well as the comparison to strong trading performance in Asia in the prior year,” Citi said.
Citi are the latest to report a surge in fixed income revenues.
This week, JP Morgan’s markets business revenues were bolstered by its fixed income trading, which saw a 23% increase in the second quarter this year.
Citigroup’s overall revenues were down 10%, totalling $17.5 billion, compared to $19.5 billion in Q2 last year.