Citi has reported a 3% year-on-year decline in its securities services revenue for Q1 2017.
The custodian bank put this drop down to “prior period divestitures” which relate to the sale of its hedge fund services business to SS&C in August 2015.
Securities services revenue stood at $543 million compared to $561 million at the same period last year.
Excluding the divestitures, revenue increased by 12% due to higher deposit balances and growth in assets under custody.
Overall revenues for Citi came in at $18.1 billion, representing a 3% increase.
The bank attributed this to a 16% increase in its institutional clients group as well as a 1% increase in global consumer banking.
“The momentum we saw across many of our businesses towards the end of last year carried into the first quarter, resulting in significantly better overall performance than a year ago,” said Citi CEO Michael Corbat.
“Revenues increased in both our consumer and institutional lines of business, most notably in areas where we have been investing such as equities, US cards and Mexico.” Global Custodian reported last week that JP Morgan had recorded a 4% uptick in its securities services revenues in its Q1 2017 figures.
Other first quarter results are expected over the next two weeks.