Revenues from Citigroup’s private bank rose by $21 million year-over-year to $515 million for the first quarter. Meanwhile, overall net income at the securities and banking division – which includes the private bank – fell by $1.5 billion year-over-year to $1.7 billion for Q1 2011.
The $1.7 billion in net income was achieved on revenues of $6.0 billion. The North American region accounted for the largest revenue share at $2.3 billion, followed by EMEA ($2.1 billion), Asia ($1.0 billion), and LatAm ($582 million), Citi said in a statement today.
On a quarter-to-quarter basis, private banking revenues rose by $14 million and net income at banking and securities as a whole rose by $1.5 billion. The comparison is much more favorable on a sequential basis because net income at the division was $209 million for the final quarter of last year, compared to $3.2 billion for the first quarter 2010.
Some of the year-over-year income effects were driven by an increase in expenses, which were 11 per cent higher than in the first quarter of 2010. These were impacted by a litigation reserve release recorded in Q1 last year, as well as greater investment spending and business costs for the comparable period this year.
Meanwhile, net credit losses in banking and securities were $204 million for the quarter, which represents an $103 million increase year-over-year. These were primarily due to losses from loans to specific counterparties, according to the bank, for which it released reserves.
For Citigroup as a whole, revenues were $19.7 billion in Q1, down 22 per cent year-over-year, with both interest and non-interest revenues declining. On this the group reported net income just under $3 billion. Its Tier 1 capital ratio was 13.3 per cent at quarter-end.