Pre-tax profits decrease 8% at Citibank’s Irish hub

Pre-tax profits at the main Irish arm of Citibank last year declined by 8% to $757.68m (€686.5m).

New accounts filed by the Dublin-based Citibank Europe plc show that the bank sustained the drop in profits after its operating income reduced by less than 1% from $1.732bn to $1.689bn in the 12 months to the end of December last.

The chief executive of the firm is Irish banker Aidan Brady and, according to the directors’ report “the business environment in which the company operates, remained challenging in 2014”.

Seven of the bank’s board members are Irish and the directors’ report states: “The company had another very profitable performance in 2014 reporting profit after tax of $643m.”

The directors further say they continue to assess new opportunities for optimal use of the company’s capital base. In January, the firm announced its decision to exit certain businesses, including hedge fund services.

Last month, Citigroup confirmed plans to shift the head office of its European retail banking operation to Dublin from London to benefit from lower costs and capital requirements and the business will be taken over by Citibank Europe.

The company occupies a large office block on the north side of the Liffey where just under 4,000 people are employed.

The report states that the 2014 profit “was despite the business environment in which the company operates remaining challenging in 2014.”