GLOBAL – Citigroup has reported that first-quarter net income at its asset management business fell 25% to $79m (€61.5m), with revenues at the division down 10% (Updates with comment).
First quarter asset management income slipped from $105m a year before. Revenues were down to $413m from $461m.
That breaks down to a 23% decline in asset management profit, excluding retirement services, to $55m. Retirement services on their own were down 29% at $24m.
It said of the business: “Revenues and income declined due to a reduction in customer activity and increased expenses.”
Losses at asset management in Europe, the Middle East and Africa doubled to $2m. This segment has not made a profit of more than $1m since the start of 2004. Revenues at the EMEA asset management business fell 22% to $28m.
"We have been awarded mandates from clients in both institutional and fund-of-funds over the last six months and we see this as a very positive indication of continued growth potential in this region", said John Nestor, head of Citigroup's Asset Management business in EMEA.
"Overall, our underlying revenues (excluding items consolidated under FIN46) in the first quarter of 2005 increased compared to the prior year quarter."
Total assets under management fell three percent to $460bn, primarily reflecting St. Paul Travelers’ decision to pull $37bn. Total institutional assets under management fell four percent to $218.3bn.
Assets under custody rose 21% to $8trn. Net income from transaction services was up five percent at $245m while revenues rose 21% to $1.1bn.
Overall, Citigroup posted a record net income of $5.44bn. “We are proud of our record global earnings, driven by the strength and diversity of our global franchises,” said chief executive Charles Prince.