Citi's US investment banking business soared last year. Citi's European investment banking business didn't.
The bank's fourth quarter results, released today, show that Citi's US-based Securities and Banking business achieved a 22% increase in revenues last year and that Citi's European-based Securities and Banking business achieved a 14% decline in revenues over the same period.
That revenue decline seems to have had an impact on profitability. Citi's doesn't break out regional profits in securities and banking specifically, but across its broader 'Institutional Clients Group' (which includes commercial banking as well as investment banking), profits in Europe, the Middle East and Africa (EMEA) fell by 2% while profits in North America rose by 89% year-on-year in 2013.
Citi hired all sorts of people in London over the past 12 months, adding 108 registered people between October and December alone. In a poor revenue environment, all that hiring is likely to have taken its toll on profitability - particularly as Citi is one of London's best payers when it comes to risk taking and managerial staff. The most recently available figures (for 2012) revealed that Citi pays salaries averaging £603k to non-executive level risk takers in London, making it a lot more generous than rival banks.