JP Morgan and Citi have both seen an improved performance in the third quarter for its securities services business, off the back of increased client volumes and fees.
The two US investment banks are the first to report their quarterly earnings, with their results often seen as a reflection of the current state of the banking industry.
JP Morgan recorded an increase of 5% in its securities services revenues year-on-year at $1.1 billion, while Citi stated the business grew by 11% to $672 million.
Citi highlighted “continued growth in client volumes and higher net interest revenue” as the main driver for securities services revenues, while JP Morgan said the business was boosted by “higher interest rates and operating deposit growth, as well as higher asset-based fees from new client activity.”
JP Morgan also reported assets under custody (AuC) of $24.4 trillion in the quarter, up 7% year-on-year and 1% quarter-on-quarter.
Citi did not disclose their AuC and administration for the quarter, however as of June 2018 it stood at $19.4 trillion.