(Reuters) – Citigroup (NYSE:C) swung to a profit in the fourth quarter, fueled by strength in trading and a recovery in dealmaking that drove up investment banking fees.
Trading desks at the banks benefited from a banner year in U.S. equities, with the S&P 500 touching record-high levels in the fourth quarter.
Markets revenue at Citi jumped 36% to $4.6 billion in the quarter.
Wall Street’s dealmakers have also cashed in on a revival in mergers, acquisitions and initial public offerings after an almost three-year-long dry spell. Banks‘ capital markets businesses got a boost in the second half of 2024 as corporate clients issued more debt and equity.
Industry executives expect the momentum to continue this year as the Federal Reserve cuts interest rates and President-elect Donald Trump takes office. He has vowed to implement more pro-business policies.
The third-largest U.S. lender reported a net income of $2.9 billion, or $1.34 per share, for the three months ended Dec. 31 on Wednesday. That compares with a loss of $1.8 billion, or $1.16 per share, a year earlier.
