Citigroup has reported a net income of $4.09bn for the first quarter of 2018, an increase of 13% compared to $4.62bn in the corresponding quarter of 2017.

The bank said that the rise in income was due to higher revenues and a lower effective tax rate.

The banking group’s total revenues for the quarter ended 31 March 2018 were $18.87bn, up 3% from $18.36bn in the same period last year. Operating expenses rose 2% year-on-year to $10.9bn.

Citigroup’s Private Bank revenues were $904m, a 21% surge from $749m in the previous year. The bank attributed the rise to growth in clients, loans, investments and deposits, and improved deposit spreads.

Citi CEO Michael Corbat said: “Our first quarter results demonstrate strength and balance across our franchise and position us well for the rest of the year. We grew revenue across both our institutional and consumer businesses and delivered solid, client-led revenue gains in areas we have been investing in such as Citibanamex, TTS, Equities and the Private Bank.

“In addition to improving Citi’s return on capital, we maintained our focus on also improving Citi’s return of capital. During the quarter, we returned more than $3bn in capital to common shareholders which helped drive a significant improvement in earnings per share.”