Citi's Securities Services Revenue Flat YOY, Up 7% Over Q1

While Citi’s earnings fell short of last quarter, not even counting the bank’s $7 billion mortgage settlement with the U.S. (of which the bank took close to a $3.8 billion charge this quarter) securities services was a relative bright spot.
By Jake Safane(2147484770)
While Citi’s earnings fell short of last quarter, not even counting the bank’s $7 billion mortgage settlement with the U.S. (of which the bank took close to a $3.8 billion charge this quarter) securities services was a relative bright spot.

For the second quarter of 2014, Citi’s securities service revenue rose 7% over the previous quarter to $598 million, which is essentially flat with the $599 million in Q2 2013.

Citi says that the revenue was flat as a result of higher client activity being offset by a reduction in high margin deposits.

As measured by the first half of the year compared to the first half of last year, revenue dipped by 1% to a total of $1.159 billion.

Meanwhile, the bank as a whole saw revenue saw revenue fall to $19.342 billion, a drop of 4% from the previous quarter and 6% year over year.

The firm did increase its capital, however, as its Basel III Tier 1 common ratio rose to 10.6%, up from 10.5% last quarter and 10% in Q2 2013. Citi also improved its supplementary leverage ratio to 5.7% up from 5.6% last quarter and 4.9% in Q2 2013.

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