Citigroup Q1 profits surge 42pc amid heightened market volatility

(Sharecast News) - Citigroup posted a 42% rise in firstquarter profit on Tuesday, lifted by heightened market volatility and stronger investmentbanking activity as geopolitical tensions fuelled sharp price swings across asset classes.

New York City-based Citigroup said profits for the three months ended 31 March rose to $5.8bn, or $3.06 per share, up from $4.1bn, or $1.96 per share, a year earlier, while revenue climbed to $24.6bn - the bank's highest quarterly total in a decade - with total markets revenue up 19% yearonyear at $7.2bn. Citi also delivered a 13.1% return on tangible common equity in the quarter, ahead of its 10-11% fullyear target.

Equities trading revenue jumped 39%, fixed income rose 13%, rates and currencies increased 6%, and other fixed income revenue was up 27% on strong commodities performance.

Investmentbanking revenue rose 15% as dealmaking accelerated, while equity underwriting fees surged 64%, and M&A advisory fees increased 19%. Fixedincome underwriting fees, on the other hand, slipped 6%.

Net interest income rose 12%, while revenue in Citi's wealthmanagement and retailbanking division grew 11%, though the unit posted the bank's lowest return at 10.8% on tangible common equity.

Chief executive Jane Fraser said the bank had entered the final phase of its divestiture programme, with 90% of its transformation initiatives at or near target state after it repurchased $6.3bn of shares during the quarter.

As of 1440 BST, Citigroup shares were up 1.52% at $128.20 each.

Reporting by Iain Gilbert at Sharecast.com