Citi's head of banking sees Q2 market, banking fees up Y/Y

June 10, 2025 07:53 AM PDT | By EODHD

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Citi's head of banking sees Q2 market, banking fees up Y/Y — Image source: Kalkine Media

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[Writedowns Cost Citigroup $2.5 Billion Loss In 2nd Quarter] Justin Sullivan/Getty Images News Vis Raghavan, Citigroup's (NYSE:C [https://seekingalpha.com/symbol/C]) head of banking and executive vice chair, sees banking Q2 banking fees up in single digits year-over-year. Markets are expected up in mid-to-high single-digits and "there are a few weeks left to go," he said at a conference in New York on Tuesday. Expenses are likely to pick up $200M from Q1. Overall, full-year expenses should be in line with guidance. Cost of credit, compared to last quarter, is expected to increase "a few hundred million dollars," due to reserve build.

"A lot of the work is still being done, we still have a few more weeks," Raghavan said. "On credit, overall, I'm incredibly reassured on the quality of the credit books," he noted. Over 80% of its corporate exposures are high grade, and in international, over 90% is high grade. In discussing specific parts of Citi's (NYSE:C [https://seekingalpha.com/symbol/C]) business, private credit is now "mainstream" and a "key pillar" in the capital stack. It's no longer an "exotic" investment.

Raghavan expects to see more private-public "get togethers." The private credit market doesn't have a liquidity problem, rather there's a lack of supply, he said. Apollo Global Management (APO [https://seekingalpha.com/symbol/APO]) wanted to team up with Citi to partake in the origination "in providing that supply for that wall of liquidity." For Citi (C [https://seekingalpha.com/symbol/C]), what the partnership does is, it doesn't have to commit risk weighted assets. "You don't have to ring-fence equity. "But if we like it so much, there's nothing to prevent Citi from owning it in our trading books or our credit books. So it's really very symbiotic partnership.

Citi advised Boeing on its sale of Jefferson and Apollo Global Management (APO [https://seekingalpha.com/symbol/APO]) and Blackstone (BX [https://seekingalpha.com/symbol/BX]) provided the financing for the deal. In short, "it's a key part of the capital stack; it's here to stay." Looking at the debt market, activity is more of a function of the M&A market, he said. While there's a "wall of maturities" from the 2021 boom to refinance, that won't come until 2026 or 2027, he said. [https://www.citigroup.com/global/news/press-release/2025/citi-vis-raghavan-morgan-stanley-us-financials-conference-2025] MORE ON CITIGROUP * Citigroup Inc. (C) Presents at Morgan Stanley US Financials, Payments & CRE Conference 2025 Transcript [https://seekingalpha.com/article/4793727-citigroup-inc-c-presents-at-morgan-stanley-us-financials-payments-and-cre-conference-2025] * I Prefer Bank of America Over Citigroup After Berkshire Hathaway Divestitures [https://seekingalpha.com/article/4792415-prefer-bank-of-america-over-citigroup-after-berkshire-divestitures] * Citigroup: A Valuation Trap Amid Turnaround Fatigue [https://seekingalpha.com/article/4790110-citigroup-a-valuation-trap-amid-turnaround-fatigue] * Citigroup to cut 3,500 jobs at China tech centers [https://seekingalpha.com/news/4455707-citigroup-to-cut-3500-jobs-at-china-tech-centers] * Citigroup names former Bank of America veteran Wenjie Zhang as China head [https://seekingalpha.com/news/4454095-citigroup-names-former-bank-of-america-veteran-wenjie-zhang-as-china-head]

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