Citi Private Bank revenues rose 6 per cent year-on-year to reach $668 million at end-March 2014, versus $629 million logged in the first quarter of 2013.

Citi Private Bank revenues rose 6 per cent year-on-year to reach $668 million at end-March 2014, versus $629 million logged in the first quarter of 2013.

The $668 million figure excludes $3 million of CVA/DVA compared to negative $1 million in the first quarter of 2013, driven by growth in investments and capital markets products, Citigroup said.

Private bank revenues are up 12 per cent from the final quarter of 2013, when revenues had inched up 1 per cent year-on-year but slipped to $599 million from $614 million in the third quarter.

US-listed Citigroup reported net income for the first quarter 2014 of $3.9 billion, or $1.23 per diluted share, on revenues of $20.1 billion. This compares to net income of $3.8 billion, or $1.23 per diluted share, on revenues of $20.2 billion for the first quarter 2013.

Citigroup said the 1 per cent drop in revenues was driven by a 5 per cent decline in Citicorp revenues, primarily due to a fall in fixed income markets revenues in the Institutional Clients Group and lower US mortgage refinancing activity in North America Global Consumer Banking, “partially offset by higher Citi Holdings revenues.”

First quarter 2014 results included a $210 million tax charge recorded in corporate/other related to corporate tax reforms enacted in two states which the firm said lowered marginal tax rates, resulting in a reduction in its state deferred tax assets.

Total operating expenses, meanwhile, was $12.1 billion at end-March, down 1 per cent from $12.3 billion a year ago, driven by efficiency savings and the overall decline in Citi Holdings assets - partially offset by higher regulatory and compliance costs, legal and related expenses and repositioning charges in the first quarter.

Operating expenses in Q1 2014 included $945 million of legal and related expenses - compared to $710 million in the prior year period - and $211 million of repositioning charges (Q1 2013: $148 million).

“Despite a quarter that was difficult for our company, we delivered strong results,” said Michael Corbat, chief executive at Citi.

“Both our consumer and institutional businesses performed well and we grew both loans and deposits while holding the line on our expenses. We reduced our deferred tax assets more than any other quarter since the crisis and drove Citi Holdings closer to break even,” Corbat said.

He added: “$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.” 

At the start of March 2014, Citigroup adjusted downward its fourth quarter and full-year 2013 financial results from those reported this January by an estimated $235 million after tax ($360 million pre-tax), after fraud was discovered at its Mexican subsidiary.