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Citigroup Sees Bond Desks Driving 40% Jump in Trading Revenue

Jenny Surane

(Bloomberg) -- Citigroup Inc.’s traders are on track to have their best second quarter in more than a decade.

Trading revenue is expected to climb by about 40% in the current quarter from a year earlier, with fixed-income desks driving much of the gain, Chief Financial Officer Mark Mason told investors at a conference on Wednesday. That would put revenue at about $5.76 billion, the best second-quarter result since 2009, according to data compiled by Bloomberg Intelligence.

The markets unit “has seen continued high volatility and active portfolio repositioning across the client franchise,” Mason said at the Morgan Stanley U.S. Financials Conference, held online.

Strength in the trading business -- along with higher revenue from debt underwriting -- will offset declines in the U.S. consumer unit, where Mason said revenue is expected to fall slightly as customers spend less on their credit cards and pay down balances.

Overall, the bank expects revenue to be “flat to up slightly” in the second quarter, while costs drop, Mason said.

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