Citigroup’s asset management income falls
GLOBAL – Citigroup says its asset management net income declined 37% to 72 million dollars in the third quarter, compared to the prior-year period, while the division’s revenues slipped two percent.
“Income for asset management, which includes retirement services, declined 37% to 72 million dollars, reflecting the impact of charges related to Argentina of 51 million dollars taken in retirement services,” Citigroup said in its third-quarter earnings. “Excluding these losses, income rose eight percent.”
“Revenues declined two percent, as the impact of positive net flows and improvements in global equity markets were offset by product mix changes.”
Total net income at its global investment management arm rose 17% to 367 million dollars.
Institutional assets under management rose 16% to 174 billion dollars while total assets under management rose 12% to 495 billion dollars.
Income at its transaction services arm rose 57% to 203 million dollars, from 129 million dollars a year ago – though revenues slipped two percent to 893 million dollars.
Overall, Citigroup’s net income rose 20% to 4.69 billion dollars, while revenue was up 10% at 19.4 billion dollars.
“The strengthening global economy, together with the power of our franchise and our diversified earnings sources resulted in record income of 4.69 billion dollars from continuing operations, nearly 400 million dollars higher than our previous record performance,” said chairman Sandy Weill.