Citigroup’s two wealth management businesses appear to be still suffering from the knock-on effect of last year’s difficulties with the priv...

Citigroup’s two wealth management businesses appear to be still suffering from the knock-on effect of last year’s difficulties with the private banking business in Japan. Both the bank’s Smith Barney private client business and its private bank, now collectively under Citigroup’s wealth management business, reported disappointing first quarter results. Smith Barney’s private client business saw a 22 per cent fall in net profit in the first quarter, compared with the first quarter in 2004. The private bank saw its net profit fall by 23 per cent in the same period. Assets under management at Smith Barney rose by 9 per cent during the first quarter, compared with the same quarter a year ago, to $239 billion. Net new money rose by $13 billion in the first quarter. The private bank saw assets under management (“proprietary managed assets”) rise by 19 per cent to $43 billion in the first quarter. Total client business volumes, which include banking deposits, rose by 9 per cent to $221 billion.