Citigroup

Observed pricing power is mixed. Services has demonstrated ability to grow fees and sustain spreads through cycles due to its mission-critical nature, though competition from other global banks and new rails caps outsized price hikes.

In Q2–Q3 2025, Services revenues grew mid-single digits with positive operating leverage, supported by growing TTS deposits and activity; however, non-interest fee components can fluctuate with mix, and float economics tie to rate levels.

Cards yields flex with credit cycles but face intense competition and regulatory scrutiny, limiting unilateral price increases. Overall margin trajectory improved as the efficiency ratio trended to the low-60s in 2025, but this reflects cost work as much as price.

Latent pricing exists in premium service tiers and bundled cash-management solutions, yet must be balanced against relationship breadth.