Primary equity capital and debt capital markets' activity, mergers and acquisitions, and other investment banking activities, all proved drags on Citi's Australian wholesale operation last year, but transaction services kept the business in the black.Citigroup Australia's Global Markets and Banking Group managing director, Stephen Roberts, said cash management, trade finance, treasury services, custody and other securities services, and funds management, were the areas of strength for the group. Somewhat confusingly, Citi provides a financial report each year for Citigroup Global Markets Australia, which is the investment banking side of the wholesale operation, but it doesn't report on transaction services.CGMA reported a loss of A$126 million before tax for 2010 (compared with a pre-tax profit of $15.3 million in 2009). But, Roberts said, the wholesale banking operation overall  made a profit and was in good shape.CGMA reported a drop in fee and commission income, from $181.5 million in 2009 to $134.3 million last year. Roberts said this was a fair indication of the fall of business activity in M&A, primary equity and debt capital markets, and secondary equity market trading. Roberts said: "We were in a difficult trading environment last year, with lower volumes and higher volatility."He said new investment spending would be allocated to both sides of the wholesale business. But, in the coming year, the focus would be on investment in securities services, such as custody, and funds management.