Citigroup’s net income in the first three months of 2013 was $3.8 billion, up 30% ($877 million) on the same period last year, according to the company.

That was based on revenues of almost $20.5 billion, compared to $19.4 billion in the first quarter of 2012.

The increase was largely due to growth in the company’s investment banking operations, an increase in revenue from lending and a reduction in losses from other securities and banking.

Net income for the North American division of Citicorp also rose when compared to Q1 2012, while there was a slight decline in EMEA.

“During the quarter, we benefitted from seasonally strong results in our markets businesses, sustained momentum in investment banking, continued year-over-year growth in loans and deposits in Citicorp, and a more favourable credit environment,” said Citigroup CEO Michael Corbat.

“However, the environment remains challenging and we are sure to be tested as we go through the year. “