In the second quarter of 2026, global financial markets demonstrated strong vitality. Recently, executives from Bank of America (BAC) and Citigroup (C) have successively released optimistic signals, with both banks expecting their second-quarter trading revenues to significantly exceed earlier industry forecasts. Benefiting from a broad-based recovery in cross-asset class trading and sustained increases in market trading volumes, market activity is translating into tangible revenue on the banks’ books.
Jim DeMare, co-president of Bank of America, stated that the momentum of the bank’s trading business is steadily building, with revenue growth expected to surpass the 15% forecast the bank projected last month. Bank of America CEO Brian Moynihan indicated at the end of May that second-quarter sales and trading revenues could rise by approximately 15% compared to the same period last year. DeMare noted that since that forecast was released, the market division’s performance has been on an upward trajectory, largely driven by robust equity trading. He explicitly stated that the growth is absolutely led by the equities business. Furthermore, the investment banking business is in “pretty good shape,” and despite geopolitical uncertainties, ongoing discussions around mergers and acquisitions (M&A) and initial public offerings (IPOs) continue, with business activity remaining solid. Last year, Bank of America established multiple financial targets aimed at increasing revenue across various business segments and lowering the company’s efficiency ratio. Moynihan said last month that net interest income, which accounts for more than half of the bank’s revenue, is likely to grow at the high end of the 6% to 8% target range for the full year.
Gonzalo Luchetti, CFO of Citigroup, stated that the bank is preparing for substantial gains from cross-asset class trading, with growth momentum proving more durable than early last year. Citigroup’s markets revenue is expected to post a high-single-digit to low-double-digit percentage increase, significantly exceeding the 2% growth forecast by analysts in a Bloomberg survey. Luchetti pointed out that unlike the second quarter of last year, when President Trump’s “Liberation Day” tariffs disrupted markets, the current period is characterized by broad-based strength across equities, derivatives, fixed income, foreign exchange, and commodities markets. He noted solid trading volumes in the second quarter, which are providing a more stable source of revenue growth across the group. He also predicted that investment banking fees would see a mid-double-digit percentage increase, aligning with the 15% forecast by analysts, adding that results could be even better by the end of June. This revenue will inject stronger growth momentum into Citigroup, whose share price has already risen 15% this year. CEO Jane Fraser has earned praise for driving the transformation of a bank that has long been a laggard on Wall Street.
