Citigroup sees economic slump tempering underwriting rebound

‘Adjustment Period’

“Asia IPO markets are going through an adjustment period based on investors’ changing views on growth,” said Dickson. “Europe has consistently been more challenged for IPOs, with more of boom-or-bust windows than the rest of the world. We expect that to be the case given continued challenges with the euro zone.”

Notwithstanding the slump, Dickson said he doesn’t expect to cut jobs.

“We feel properly positioned and sized,” he said. “Citi has been very disciplined with respect to revenue generation and cost,” he said. “We will remain focused on both.”

While some banks are scaling back their operations that trade stocks in Europe and arrange IPOs, that trend hasn’t translated into less competition, Dickson said.

“In the current low volume environment, competition is fierce for all business activity in Europe,” he said.

Bloomberg News

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