Citigroup announced that its Regional Consumer Banking division, which houses Citi Personal Wealth Management, posted net income of $1.45 billion on revenue of $8.2 billion. In the same period last year, net income was $1.3 billion on revenue of $8.1 billion.
Citigroup does not break out specific numbers for its advisor force in quarterly earnings announcements. But it has made recent news in revamping its advisory unit and deciding to hire at least 30 new advisors this year.
It also made structural changes to its advisor force late last year that essentially reversed previous realignments. Those recent moves were cheered by industry analysts who characterized the improvements as a return to a traditional bank-based advisory model after the financial crisis left the behemoth financial company with a number of less-than-optimal options.
Its CitiHoldings unit, which is still the beneficiary of earnings from the Morgan Stanley Smith Barney joint venture, saw a 30% decline in revenue from the prior-year period to $2.8 billion while assets fell 25% to $269 billion.
All of this was against the backdrop of total net income of $1.2 billion for the overall company on revenue of $12.9 billion for the quarter. This was down from $1.3 billion in net income on revenue of $12.5 billion from the similar period a year ago.
Lee Conrad writes for Bank Investment Consultant.