Citi and Wells Fargo treasury units show fee growth beyond lending

Corporate transaction services delivered notable second-quarter growth at Citi and Wells Fargo, underscoring how payments, treasury management, liquidity services and custody are contributing to large-bank revenue beyond traditional loan books. The figures point to a broader corporate banking model in which daily money movement and cash management generate fees while helping banks maintain operating deposits from business clients.

Citi said in its second-quarter earnings materials that revenue in its Services division rose 18% from a year earlier to $6.4 billion. Within that unit, Treasury and Trade Solutions produced $4.7 billion of revenue, also up 18%, while Securities Services increased to $1.6 billion from $1.4 billion. Citi’s total revenue rose 14% in the quarter, making Services one of the bank’s faster-growing major businesses.

Wells Fargo reported growth in a similar part of its franchise. Across Commercial Banking and Corporate and Investment Banking, combined treasury management and payments revenue increased 5% from a year earlier, according to the bank’s second-quarter results. Commercial Banking revenue rose 6%, while Corporate and Investment Banking revenue advanced 16%. In CIB, treasury management and payments generated $661 million in quarterly revenue, $50 million above the prior-year period.

Transaction banking gains alongside loans

The quarter did not show that cash-management businesses have replaced lending as the main growth engine for banks. Loan balances also increased at several institutions, particularly in corporate businesses. The results instead show that transaction-based services can expand in parallel with lending, giving banks another way to deepen relationships with finance departments.

These services operate close to the daily cash flows of companies. Payments platforms move funds to suppliers and employees, receivables tools help collect incoming cash, liquidity services help companies allocate balances across accounts and jurisdictions, and custody businesses hold and administer financial assets. For banks, those activities can produce recurring fee income and strengthen client ties because they sit inside routine corporate operations.

Citi Chief Executive Jane Fraser, speaking on the bank’s earnings call, attributed Treasury and Trade Solutions growth partly to product investment. She said Citi had gained 120 basis points of institutional market share and that client wins were up 36% year over year. “A lot of the growth beyond the movements in rates has come from the innovation that we’ve been making in the product suite,” Fraser said, adding that the bank was seeing “continued momentum in fees” and “continued momentum in volumes.”

Middle-market demand supports the shift

Demand from corporate finance teams helps explain the banks’ emphasis on these businesses. PYMNTS Intelligence, in a report produced with Visa, surveyed 1,457 chief financial officers and treasurers across 23 countries for its 2025-2026 Growth Corporates Working Capital Index. The companies in the study, described as growth corporates or middle-market firms, typically generate $50 million to $1 billion in annual revenue.

The report found that finance executives are looking for more predictable cash flow and are using working capital to support investment, inventory purchases, expansion and quicker payments to strategic suppliers. Companies that used external working-capital tools proactively reported stronger cash-flow visibility and greater operating flexibility, according to the research. The report also said artificial intelligence-supported forecasting and workflow tools can give finance teams a clearer view of liquidity.

Wells Fargo Chief Executive Charlie Scharf said on the bank’s earnings call that Wells Fargo is concentrating on businesses that can broaden client relationships, including treasury management. For banks able to connect payments, receivables, liquidity and financing on digital platforms, the opportunity is to serve corporate finance needs as linked functions rather than as separate products.

This story draws on original reporting from PYMNTS.