For the first quarter of 2014, Citi’s securities services revenues declined 1% versus the prior year period, while revenues rose 1% from the previous quarter.
The drop from last year from $566 million in revenue to $561 million reflects “lower net interest revenue, partially offset by an increase in assets under custody and overall customer activity,” the bank says. In the fourth quarter of 2013, the bank had securities services revenue of $554 million.
As a whole, the bank’s net income for the first quarter 2014 reached $3.9 billion on revenues of $20.1 billion, compared to net income of $3.8 billion on revenues of $20.2 billion for the first quarter 2013.
The firm’s Basel III Tier 1 Common ratio also rose to 10.4%, up from 10.1% last quarter and 9.3% in the first quarter of 2013. Citi’s Basel III Supplementary Leverage Ratio also rose from last quarter’s mark of 5.4% to this quarter’s ratio of 5.6%. The bank had previously failed the Federal Reserve’s Comprehensive Capital Analysis and Review (CCAR) due to what the Fed described as inadequacies in its capital planning process for 2014, specifically regarding its ability to project revenue and losses under a stressful scenario and its ability to develop adequate scenarios for its internal stress testing.
“$4 billion in net income helped generate $6 billion in regulatory capital during the quarter and increased our estimated Tier 1 Common ratio to 10.4% on a Basel III basis. Very cognizant of our shareholders desire to see a sustainable return of capital, we are engaged with the Fed to better understand their expectations regarding the CCAR process. We are committed to bringing our capital planning process to the highest possible standards, befitting an institution of our global reach. I will dedicate whatever resources and make whatever changes necessary to achieve this critical goal,” says Michael Corbat, CEO of Citi.
Citi's Securities Services Revenue Down 1% Year Over Year
For the first quarter of 2014, Citi’s securities services revenues declined 1% versus the prior year period, while revenues rose 1% from the previous quarter.