Citigroup posted $19.6bn in Q3 2014 revenues, up 9% from the same period last year, reflecting solid performance in both Institutional Clients Group (ICG) and Global Consumer Banking (GCB).
Revenues at Citigroup’s ICG totalled $8.37bn in Q3 2014, up 13% from the same period last year, reflecting a strong contribution from both the Banking and Markets and Securities services, Citi said in its Q3 2014 results.
Although no announcement has been made, market rumours suggest that Citi could be considering offloading its index business amid increased regulatory scrutiny.
SRP data
SRP’s database shows that in the past two years Citigroup has been active in 14 markets, the top being Mexico and the US. Citigroup-owned Banamex in Mexico recorded a 9% market share with $1.2bn in sales of structured products at the end of Q3 2014, while in the US Citigroup recorded a 3.3% market share with $1.3bn in sales during the same period.
The US bank has been busy over the last quarter building up global banking divisions with various appointments in Brazil, London, Australia and Hong Kong.
Eric Personne, formerly head of the EMEA multi-asset group, has been appointed head of multi-asset group structuring reporting to Derek Bandeen, global head of equities at Citi in New York, and Nadir Mahmud, global head of foreign exchange and local markets; while Cosme Astarola, former head of equity structuring at Grupo Santander Brasil, also joined Citibank Brazil’s equity derivatives structuring team in Sao Paulo.
Other recent senior appointments include that of James Boyle who was promoted to global head of equity derivatives in July following the departure of Simon Yates. Yates was the last one of a number of senior departures from Citi’s equities sales and trading this year, including that of Rory Hill, formerly co-head of equity derivatives trading for EMEA who joined Moore Capital in July; and Dan Petherick, EMEA equity derivatives flow sales, who left Citi at the end of August to join Société Générale.
As reported, both Petherick and Hill left after the appointment of David Haldane as head of EMEA equity derivatives, a newly created role with the mandate of growing Citi’s regional EQD business, including flow, exotics and corporate equity derivatives.
In addition to Haldane and Boyle’s appointments, Citi also hired the following: Nick Herne as global equities COO from Morgan Stanley; Carl Androsiuk as director of equity derivatives trading from RBS; Sam Baig as head of liquidity strategy from Redi, a trading tech firm spun out of Goldman reporting to Steve Garrard, head of EMEA equity sales trading and Yonatan Gozdanker, head of EMEA cash trading.
Investment banking
The bank’s investment banking (IB) revenues increased 32%, boosted by an increase in advisory and equity and debt underwriting activity. Fixed income markets revenues increased by 5% driven by an increase in securitised products revenues as well as an increase in foreign exchange volatility and volumes that positively impacted the rates and currencies business. In North America securitised products revenues increased due to investor appetite for spread products and commodities revenues increases were driven by strong investor and corporate client flows.
Equity markets revenues were up 14%, driven by improved performance in the derivatives and prime finance businesses, which saw increases due to strong client activity and increased customer flows, respectively.
Revenues for Citigroup’s GCB revenues totalled $9.6bn in Q3 2014, up 4% from the same period last year. This comes after Citi announced that it is exiting its consumer businesses in 11 markets as part of a strategic move to accelerate the transformation of its GCB business. Affected businesses include the consumer franchises in Costa Rica, the Czech Republic, Egypt, El Salvador, Guam, Guatemala, Hungary, Japan, Nicaragua, Panama and Peru, as well as the consumer finance business in Korea. The bank will keep its corporate and investment banking presence in most markets from which they are exiting consumer banking.
Click here to read the Q3 2014 results for Citigroup.
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