Citi H1 Report: Transactional Demand Called "Rare," Expenses Track Revenue

The Citi Global Wealth at Work H1 2026 report — published August 18 — echoed Wells Fargo's findings with revenue growth of 11.7% and demand up 4.2%, against a historical average of 1.5–2%. Citi characterized the demand growth as "rare" and attributed it primarily to mega-M&A and middle-market M&A transactions. Expenses grew 9.7%, with compensation up 8.9% — fast but still below revenue growth, preserving margins for now. Top 50 firms led with revenue growth of 13.1% against expense growth of 10.7%. Early Q3 signals reportedly remained strong, though Citi flagged that inventory rose 16.7%, consistent with the WIP buildup visible across other surveys.