Citi sees jump in securities services income
16 July 2018 London
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Citi’s Securities Services revenues of $665 million jumped by 12 percent in Q2 2018.
Citi said this was down to continued growth in client volumes and higher net interest revenue.
However, it added that the strong revenue growth recorded in Securities Services and equity markets was more than offset by a decline in fixed income markets. f
Fixed income markets revenues of $3.1 billion in Q2 fell by 6 percent.
Citi attributed this to a more challenging market environment and a strong prior-year period comparison in G10 rates and securitised products.
Equity markets revenues of $864 million increased 19 percent, Citi found, with growth achieved across all products.
Citi said this reflected the benefit of continued higher market volatility and continued momentum with investor clients.
Citi’s overall revenues of $18.5 billion in Q2 2018 were up 2 percent, driven by 3 percent aggregate growth in global consumer banking and Institutional Clients Group.
This was partially offset by a 20 percent decrease in corporate/other revenue due to the ongoing wind-down of legacy assets.
Citi’s operating expenses of $10.7 billion in Q2 2018 were largely unchanged.
Higher volume-related expenses and investments were offset by efficiency savings and the wind-down of legacy assets.
Its cost of credit in Q2 was $1.8 billion, up 6 percent. Net income increased to $4.5 billion in Q2. It attributed this primarily to higher revenues and a lower effective tax rate; it said the latter was 24 percent in the current quarter compared to 32 percent in Q2 a year earlier.
Citi said this was down to continued growth in client volumes and higher net interest revenue.
However, it added that the strong revenue growth recorded in Securities Services and equity markets was more than offset by a decline in fixed income markets. f
Fixed income markets revenues of $3.1 billion in Q2 fell by 6 percent.
Citi attributed this to a more challenging market environment and a strong prior-year period comparison in G10 rates and securitised products.
Equity markets revenues of $864 million increased 19 percent, Citi found, with growth achieved across all products.
Citi said this reflected the benefit of continued higher market volatility and continued momentum with investor clients.
Citi’s overall revenues of $18.5 billion in Q2 2018 were up 2 percent, driven by 3 percent aggregate growth in global consumer banking and Institutional Clients Group.
This was partially offset by a 20 percent decrease in corporate/other revenue due to the ongoing wind-down of legacy assets.
Citi’s operating expenses of $10.7 billion in Q2 2018 were largely unchanged.
Higher volume-related expenses and investments were offset by efficiency savings and the wind-down of legacy assets.
Its cost of credit in Q2 was $1.8 billion, up 6 percent. Net income increased to $4.5 billion in Q2. It attributed this primarily to higher revenues and a lower effective tax rate; it said the latter was 24 percent in the current quarter compared to 32 percent in Q2 a year earlier.
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