Citigroup Expects Mid-Teens Growth in Investment Banking

Citigroup Inc. is anticipating a significant uptick in its financial performance for the first quarter of 2026. Chief Executive Officer Jane Fraser announced on Tuesday that the bank expects investment banking fees and markets revenue to grow by a mid-teens percentage. Following the announcement at an RBC conference, shares of the financial institution rose by 1.2% during morning trading sessions. The projected growth is largely attributed to robust activity within the equities and fixed income sectors. Fraser noted that the mergers and acquisitions market continues to show resilience, particularly as corporations maintain heavy investments in artificial intelligence and automation technologies. This surge in deal-making and trading comes amid a backdrop of heightened global volatility. > The mergers and acquisitions market remains vibrant at a time of sustained investment in artificial intelligence and automation. Market analysts suggest that ongoing geopolitical tensions have contributed to increased client activity, providing a boost to trading desks at major investment banks. Heightened volatility typically drives higher volumes as investors reposition their portfolios in response to global events. The bank is currently navigating a comprehensive restructuring strategy led by Fraser. This turnaround plan is aimed at streamlining operations, addressing long-standing regulatory issues, and improving overall profitability to better compete with industry peers. As part of these efforts, the organization has been reducing its headcount. Reports from India and other global hubs indicated that approximately 1,000 positions were eliminated in January, with further layoffs expected to occur throughout March. Fraser also clarified that the bank will be front-loading certain severance expenses during the first quarter to account for these workforce reductions. The strategic shift remains a central focus for the firm as it seeks to close the valuation gap with its primary competitors.