FX Volatility Boosts Bank Revenues

Banks posting 'significantly higher' revenue due to clients' increased currency trading.

Diverging monetary policies are creating ideal conditions for banks to make money from trading currencies, as Credit Suisse Group AG to Goldman Sachs Group Inc. say rising volatility is boosting earnings.

“If there’s higher volatility, there’s higher volume and higher opportunities for us to generate revenue,” Bernie Sinniah, the London-based global head of corporate foreign-exchange sales at Citigroup Inc., the second-biggest currency trader, said in a phone interview.

‘Strong’ Activity

“Activity levels in our currency business remained strong, as clients reacted to increased volatility, particularly in Asia,” Chief Financial Officer Harvey Schwartz said on a conference call with analysts.

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