Citi’s Investment Banking Market Share Hits All-Time Low Amid Global Shifts

In a significant market fluctuation, new data from the London Stock Exchange Group (LSEG) revealed that JP Morgan‘s dominance in the global investment banking market reached a historic low last year, while Citi‘s share plummeted to its lowest level since 2000. JP Morgan claimed a leading 6.8% share, the sole top firm to grow its market hold by 0.3% in 2023.

Citi’s investment banking division constituted a mere 3.4% market share, down 0.2% from the previous year. This dip underscores the bank’s struggle to keep pace with its counterparts on Wall Street. The disappointing figures came in the wake of Citi’s announcement of restructuring plans and workforce reductions.

Steering towards a revamp, Citi unveiled a significant overhaul that includes 20,000 job cuts and a reorganized corporate structure featuring five operational divisions. Matthew Toole, deals intelligence director at LSEG, indicated that Citi faced severe revenue declines in the past two years due to a global slowdown in dealmaking.

The report further highlighted that JP Morgan maintained the top spot with a 6.8% market share, followed by Goldman Sachs at 5.5%, Bank of America, Morgan Stanley, and Citi in successive order. Barclays, recently confirming plans to split its corporate and investment banking arm, secured a 2.7% share, surpassing UBS.

In a bid to enhance client relationships and fortify its position in deal making and capital markets, Citi’s recent initiatives mark a pivotal juncture in its evolution as a financial institution.

Amidst market shifts, UBS experienced a notable 1% decline in market share, attributing it to a merger agreement with Credit Suisse. Citi’s investment banking fees for the year totaled $3.6bn, down 12% from the previous year and the lowest since 2011. The broader investment banking landscape saw a 7% drop in fees across the top 25 investment banks, amounting to $106bn.