Investment banks may be struggling, but their custody arms are quietly posting stellar revenues and hiring enthusiastically.

In the first quarter of this year, revenues from Citigroup’s Global Transaction Services arm rose 42% as against last year, with assets under custody swelling 21%.

JPMorgan’s treasury and securities services business saw revenues rise 53% in Q1 from this time last year. Leading custodian State Street has also seen its servicing fees grow 34% this year.

What’s behind the boom? Francis Jackson, head of business development EMEA, JPMorgan Investor Services, says custodians are insulated from market events by their ability to make money whether markets rise or fall: “The trades need to be settled, the funds need to be valued and the instrument types need to be supported. Our business goes up in line with the market, but doesn’t fall with the market.”

In particular, the area of derivatives servicing has swelled, as asset managers look to increase their exposure to exotic asset classes.

Daron Pearce, head of relationship management EMEA, BNY Mellon, says people who know about derivatives processing are at a premium: “There’s been a big change of mindset around the use of derivatives and massive volumes have followed.”

With business still steaming ahead, custodians are still hiring. Clare O’Brien, of recruiters FSS City, says banks have imposed hiring freezes, but custody recruitment continues to grow. The only downside is the pay.

At the junior level, salaries in global custody hover around the £28k-£40k mark, according to figures from Morgan McKinley.

The highest paying roles are in product development, sales and business development, and relationship management, which at the top end come in at £75k+, £70k+ and £70k+ respectively.