Citigroup's Q3 investment banking fees jump

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Citigroup's profit was broadly steady and beat third-quarter estimates as it benefited from rising interest payments and surging investment banking fees, the bank said today.

The bank said its reorganisation plan will result in a 15% reduction in functional roles and that the first phase of the plan eliminated 60 net committees.

"When completed, we will have a simpler firm that can operate faster, better serve our clients and unlock value," the CEO added. Revenue from fixed income trading grew 14% to $3.6 billion, which more than offset a 3% drop in equities trading revenue.The third largest US lender set aside more money to cover potential bad loans, even though delinquency levels were still low compared to historical levels.At the same time, lenders have benefited from the Federal Reserve's campaign to quell inflation, which has increased borrowing costs and helped banks earn more from customer interest payments.

The bank said its Expenses rose 6% to $13.5 billion due to rising costs and investments in control systems. The expenses included severance payments for employees who were laid off during the sale of its international businesses.

 

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