Securities services revenues on the up for Citi
16 April 2021 US
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Citi’s Q1 2021 results have revealed markets and securities services revenues of $6.7 billion, which marks an increase of 2 per cent compared to last year’s figure.
Securities services revenues of $653 million increased 1 per cent on a reported basis, but were unchanged in constant dollars, as growth in deposits, assets under custody and settlement volumes were offset by lower spreads.
Fixed income markets revenues of $4.6 billion decreased 5 per cent versus a strong prior-year period, as higher revenues across spread products partially offset lower revenues in rates and currencies.
Equity markets revenues of $1.5 billion increased 26 per cent, driven by strong performance in cash equities, derivatives and prime finance, reflecting solid client activity and favourable market conditions.
Revenues decreased 7 per cent from the prior-year period, as higher revenues in investment banking and equity markets were more than offset by lower rates, the absence of prior year mark-to-market gains on loan hedges within the Institutional Clients Group and lower card volumes in Global Consumer Banking.
Net income of $7.9 billion increased significantly from the prior-year period driven by the lower cost of credit.
Earnings per share of $3.62 also increased from the prior-year period, reflecting the increase in net income, as well as a slight decline in shares outstanding.
Citi’s CEO Jane Fraser says: “It’s been a better than expected start to the year, and we are optimistic about the macro environment. We are committed to serving our clients through the recovery and positioning the bank for a period of sustained growth.”
Citi’s Q4 2020 results found that markets and securities services revenues totalled $4.5 billion, which represented an increase of 13 per cent on 2019’s figure.
Securities services revenues of $653 million increased 1 per cent on a reported basis, but were unchanged in constant dollars, as growth in deposits, assets under custody and settlement volumes were offset by lower spreads.
Fixed income markets revenues of $4.6 billion decreased 5 per cent versus a strong prior-year period, as higher revenues across spread products partially offset lower revenues in rates and currencies.
Equity markets revenues of $1.5 billion increased 26 per cent, driven by strong performance in cash equities, derivatives and prime finance, reflecting solid client activity and favourable market conditions.
Revenues decreased 7 per cent from the prior-year period, as higher revenues in investment banking and equity markets were more than offset by lower rates, the absence of prior year mark-to-market gains on loan hedges within the Institutional Clients Group and lower card volumes in Global Consumer Banking.
Net income of $7.9 billion increased significantly from the prior-year period driven by the lower cost of credit.
Earnings per share of $3.62 also increased from the prior-year period, reflecting the increase in net income, as well as a slight decline in shares outstanding.
Citi’s CEO Jane Fraser says: “It’s been a better than expected start to the year, and we are optimistic about the macro environment. We are committed to serving our clients through the recovery and positioning the bank for a period of sustained growth.”
Citi’s Q4 2020 results found that markets and securities services revenues totalled $4.5 billion, which represented an increase of 13 per cent on 2019’s figure.
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