Citi's Treasury Revenue Jumps 18% as Banking Growth Shifts Beyond Lending

Citi reported that its Treasury and Trade Solutions revenue jumped 18% in the second quarter. Wells Fargo said its treasury management and payments revenue rose 5% over the same period. The earnings reports show corporate banking growth is extending beyond conventional lending into transaction services.

Citi said its Services business generated $6.4 billion in revenue, up 18% from a year earlier. Treasury and Trade Solutions contributed $4.7 billion, also up 18%. Securities Services revenue rose to $1.6 billion from $1.4 billion. The performance made Services one of Citi's faster-growing major businesses during a quarter where companywide revenue increased 14%.

CEO Jane Fraser pointed to a 120-basis-point gain in institutional market share and said client wins were up 36% year over year.

Payments, cash management, trade services and custody put banks inside the continuing flow of corporate money.

At Wells Fargo, combined treasury management and payments revenue across Commercial Banking and Corporate and Investment Banking rose 5% year over year. Within CIB, treasury management and payments generated $661 million of quarterly revenue, $50 million more than a year earlier. Commercial Banking revenue rose 6%, while CIB revenue increased 16%. Wells Fargo holds an Alpha Score of 62 from AlphaScala, placing it in the moderate range among financial stocks.

Loan balances also grew at several banks, particularly in corporate businesses. The banks' results did not establish that cash management has displaced lending as the industry's primary growth source. They showed that transaction-oriented services can grow alongside lending and give banks another route to broaden corporate relationships.

Unlike loan income, which depends on credit demand and interest rate spreads, treasury management fees are tied to transaction volumes that tend to grow with economic activity. That makes fee-based services a more stable revenue stream over time.

The demand for these services is visible in PYMNTS Intelligence research. The "2025-2026 Growth Corporates Working Capital Index," produced with Visa, surveyed 1,457 chief financial officers and treasurers at companies across 23 countries. The growth corporates, often middle-market companies generating $50 million to $1 billion in annual revenue, are seeking more predictable cash flow. They use working capital to support capital investment, inventory purchases, expansion and faster payments to strategic suppliers.

Companies using external working capital tools reported better cash flow visibility and operating flexibility, according to the report.

Artificial intelligence-supported forecasting and workflow tools can give finance teams a clearer view of liquidity. The research creates an opening for banks that can connect payments, receivables, liquidity and financing rather than sell each service as a separate product.

Wells Fargo CEO Charlie Scharf said the bank is focused on businesses that could broaden client relationships, including treasury management. The earnings results line up with the problem PYMNTS identified: finance departments want faster money movement, stronger cash flow visibility, better forecasting and access to working capital when business conditions change.

Citi's Fraser said client wins were up 36% year over year.