In the first quarter of 2025, both Citigroup and Bank of America reported better-than-expected profits, benefiting from increased trading revenues amid heightened investor concerns over a potential global trade war initiated by President Trump's tariff proposals. Citigroup experienced a 21% profit increase to $4.1 billion, while Bank of America saw an 11% rise to $7.4 billion. Trading activities, particularly in equities and fixed-income, significantly bolstered revenues. Nonetheless, analysts warned of potential declines in merger and acquisition activity, with a notable 13% decrease in Q1, possibly hindering future economic recovery if trade tensions persist.
Both Citigroup and Bank of America exceeded profit expectations in Q1 2025, leveraging higher trading revenues amid global trade tensions sparked by President Trump's policies.
Citi's equities traders benefited from "increased market volatility" and uptick in client transactions, driving a 21% profit increase in Q1 2025.
Trading results were the star of the show," said Stephen Biggar of Argus Research, emphasizing concerns about a potential dip in dealthmaking opportunities.
US M&A activity fell 13% in Q1 2025, raising concerns about the economic recovery if unresolved tariff issues continue.
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