We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Citigroup (C) Projects Q2 Trading Revenues to Descend Y/Y
Read MoreHide Full Article
At the Morgan Stanley Financials Conference in New York on Tuesday, Citigroup Inc.’s (C - Free Report) Chief Financial Officer, John Gerspach, announced its latest outlook for the second quarter. The bank expects second-quarter 2017 fixed income and equity markets revenue to fall 12–13% year over year, affected by low volatility in bond and equity markets.
"Volatility has been very low this quarter, which has certainly led to somewhat of a softer trading environment, especially in the fixed income and equity markets," said Gerspach, speaking at the conference in New York.
Earlier in June, at a Deutsche Bank investor conference, Marianne Lake – the chief financial officer at JPMorgan Chase & Co. (JPM - Free Report) – stated that the company’s trading business for the first two months of the second quarter has been down roughly 15%, year over year. Specifically, lower fixed income trading weighed on the overall trading income, while equities were up marginally.
In a separate conference call, held by Sanford Bernstein, Bank of America Corporation’s (BAC - Free Report) chief executive – Brian T. Moynihan – warned investors that the bank’s earnings in the second quarter will be hit by decline in trading income (down 10–12% from the prior-year quarter).
Further, Morgan Stanley’s (MS - Free Report) CEO James Gorman and Goldman’s Co-President David Solomon hinted the same view.
Last year’s trading results were quite unusual across the industry, with unexpected political developments in the U.S. and worldwide being the main drivers. The momentum continued in first-quarter 2017 too. However, banks are expecting weak trading revenues in the second quarter.
An improving economic backdrop and optimism surrounding the interest rate hike are supporting banks’ financials. Furthermore, the recently approved Financial Choice Act to eradicate a number of core financial regulations will act as a tailwind for banks in the coming quarters.
Though banks are expected to remain under pressure due to lackluster fixed-income trading activities in the near term, cost containment efforts are noticeable.
Shares of Citigroup gained 6.1% over the past three months, outperforming 3.4% decline registered by the Zacks categorized Regional Banks-Major industry.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
Image: Bigstock
Citigroup (C) Projects Q2 Trading Revenues to Descend Y/Y
At the Morgan Stanley Financials Conference in New York on Tuesday, Citigroup Inc.’s (C - Free Report) Chief Financial Officer, John Gerspach, announced its latest outlook for the second quarter. The bank expects second-quarter 2017 fixed income and equity markets revenue to fall 12–13% year over year, affected by low volatility in bond and equity markets.
"Volatility has been very low this quarter, which has certainly led to somewhat of a softer trading environment, especially in the fixed income and equity markets," said Gerspach, speaking at the conference in New York.
Earlier in June, at a Deutsche Bank investor conference, Marianne Lake – the chief financial officer at JPMorgan Chase & Co. (JPM - Free Report) – stated that the company’s trading business for the first two months of the second quarter has been down roughly 15%, year over year. Specifically, lower fixed income trading weighed on the overall trading income, while equities were up marginally.
In a separate conference call, held by Sanford Bernstein, Bank of America Corporation’s (BAC - Free Report) chief executive – Brian T. Moynihan – warned investors that the bank’s earnings in the second quarter will be hit by decline in trading income (down 10–12% from the prior-year quarter).
Further, Morgan Stanley’s (MS - Free Report) CEO James Gorman and Goldman’s Co-President David Solomon hinted the same view.
Last year’s trading results were quite unusual across the industry, with unexpected political developments in the U.S. and worldwide being the main drivers. The momentum continued in first-quarter 2017 too. However, banks are expecting weak trading revenues in the second quarter.
An improving economic backdrop and optimism surrounding the interest rate hike are supporting banks’ financials. Furthermore, the recently approved Financial Choice Act to eradicate a number of core financial regulations will act as a tailwind for banks in the coming quarters.
Though banks are expected to remain under pressure due to lackluster fixed-income trading activities in the near term, cost containment efforts are noticeable.
Currently, Citigroup carries a Zack Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Citigroup gained 6.1% over the past three months, outperforming 3.4% decline registered by the Zacks categorized Regional Banks-Major industry.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>