MARKET INFRASTRUCTURE

JP Morgan, Citi see growth in Q2 securities services revenue

JP Morgan and Citi have recorded increased securities services revenues in successive quarters.

By Joe Parsons joe.parsons@strategic-i.com July 17, 2017 10:17 AM GMT
JP Morgan and Citi have both reported an increase in securities services revenues for the second quarter, signalling a potential increase in earnings for US custody banks.

JP Morgan reported a second consecutive increase in revenues of $982 million, up 8% year-on-year, while Citi’s securities services grew by 10% with revenues of $584 million.

Speaking on its quarterly earnings call John Gerspach, chief financial officer (CFO) at Citi, attributed the growth to an increase in client volumes across its global custody business.

“We view security services as similar to TTS (treasury and trade solutions) [business] in many ways, serving as the core operating infrastructure for our investor clients around the world and providing the foundation for broader franchise relationships,” said Gerspach.

Meanwhile JP Morgan’s CFO, Marianne Lake, said on its earnings call that its revenues from the segment benefited by “higher rates and higher asset-based fees.”

BNY Mellon and State Street are set to report its quarterly earnings this week.