Revenues in Global Wealth Management at Citi were up 28 per cent year on year in 2007, primarily due to the impact of acquisitions, and increase in fee-based revenues, and increase in international revenues, especially capital markets activity in Asia (where net income was up 93 per cent) and growth in investment revenue in EMEA said the US bank in its latest earnings statement.

The Private Bank accounted for 32 per cent of net income in the division.

Total client assets, including assets under fee-based management increased $346 billion, or 24 per cent, reflecting assets from the Nikko Cordial and Quilter acquisitions, as well as organic growth.

Net inflows increased slightly compared to the prior year.

Global Wealth Management had 15.454 financial advisors or bankers at the end of last year, compared with 13,694 in the previous year. Annualised revenue per financial advisor was $880,000, up 19 per cent.

Operating expenses were up 22 per cent due to the impact of acquisitions and higher variable compensation.

The provision for loan losses increased $76 million during last year, including a reserve for specific non-performing loans in the Private Bank.

Sounding a note of caution, Citi says that its Global Wealth Management business is affected by the levels of activity in the capital markets, which are in turn influenced by macro-economic and political developments.

However, it says that in 2008, Global Wealth Management expects to see continued asset and revenue growth resulting from the 2007 investments in its wealth management platform, as well as from past acquisitions. Declines in asset values due to economic conditions could adversely impact asset and revenue levels, though.