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Tag: citi

  • DBS in Advanced Talks for Citi’s India Consumer Unit

    DBS in Advanced Talks for Citi’s India Consumer Unit

    Citi is keen to exit its India consumer banking operations soon and would like to sell the entire set-up in one go, sources told India media.

    Talks with DBS Bank are at an advanced stage and they are keen to take up the entire consumer banking operation,» a person familiar with the matter said.

    DBS was one of the first foreign lenders to operate a wholly-owned subsidiary in India, and has been keen to expand operations in the country. Last year, it took control of loss-making Lakshi Vilas Bank and merged it with its India entity.

    DBS chief executive Piyush Gupta said,the bank is always looking at assets that could be beneficial to the franchise, but we do want to get caught in a bidding frenzy, when asked about the bank’s interest in Citi’s retail assets in Asia at a media briefing last week on DBS’ first-quarter results.

    Standard Chartered and local lenders Kotak Mahindra Bank and Axis Bank are also said to be interested, while SBI Cards and Payment Services is eyeing Citi’s credit card portfolio there. Private lender Yes Bank also joined the list of interested parties.

    In February, Citi announced its intention to exit its consumer banking business in 13 markets, 10 of which are in Asia, in a move to double down on wealth.

    Citibank India has 35 branches and employs 19,000 people,  serving 2.9 million retail customers, including 1.2 million bank accounts and 2.2 million credit card accounts, according to «Mint.» It has a 6 percent market share of retail credit card spends in India.

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  • Citi Elevates Senior Hong Kong Investment Banker

    Citi Elevates Senior Hong Kong Investment Banker

    Citi has expanded the role of its regional head of corporate finance with greater responsibilities for the Hong Kong investment banking business.

    Alex Schrantz has been named head of banking, capital markets and advisory (BCMA) for Hong Kong, according to a statement, effective immediately. Schrantz reports to APAC head of BCMA Jan Metzger alongside Hong Kong and Macau chief executive Angel Ng.

    Schrantz will retain his existing role as APAC head of corporate finance.

    Schrantz has nearly 30 years of global banking experience of which over two decades were based in Hong Kong. He first joined Citi in 2012 and has been responsible for overseeing capital amerces execution in Asia Pacific. Previously, he was also a member of the listing committee for the local stock exchange from 2006 to 2010.

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  • Citi Eyes More China Licenses

    Citi Eyes More China Licenses

    After its consumer banking exit in China, Citi will accelerate the growth of its mainland institutional business with the reported pursuit of new licenses.

    Citi plans to submit an application for a securities and futures brokerage license, according to a report citing unnamed sources, with a focus on underwriting yuan-denominated shares and client trading.

    The American bank plans to submit the application within the next two months with the aim of launching for business in 12 to 18 months.

    A chief executive for the business will soon be named and 50 staff will be initially hired before doubling in the longer term, the report added. Most hires will be external but staff from other mainland businesses will also be transferred.

    Citi is a relative latecomer in terms of expansion in China compared to its rivals which have announced ambitious goals to double or even triple headcount in the historic opening of the mainland’s $54 trillion financial market.

    The bank also recently announced its planned retail banking exit in China as part of a broader pullback across markets in Asia and EMEA.

    Currently, Citi has a bond underwriting and settlement license as well as a domestic custody license received last year.

  • Global Banks Vie for Citi’s Asia Consumer Business

    Global Banks Vie for Citi’s Asia Consumer Business

    Two of Singapore’s «big three» lenders are said to be interested in acquiring parts of Citi’s consumer business, which is downsizing worldwide.

    DBS Group, OCBC, Mitsubishi UFJ Financial Group (MUFG) and Standard Chartered intend to bid parts of the bank’s consumer banking portfolios and brances in Asia, citing sources with direct knowledge of the matter.

    The sale process will start within a couple of weeks, the sources said. The businesses Citi is exiting had $82 billion in total assets and were allocated $7 billion in tangible common equity last year, Citi said.

    Last week, Citi announced its intention to exit its consumer banking business in 13 markets, 10 of which are in Asia: Australia, China, India, Indonesia, Korea, Malaysia, the Philippines, Taiwan, Thailand, and Vietnam.

    The bank said it intends to «double down on wealth» as it focuses its consumer banking franchise in Asia and EMEA solely through its four wealth centers: Singapore, Hong Kong, UAE, and London.

    DBS, which operates a fully owned subsidiary in India, is said to be interested in Citi’s business there, which includes retail deposits, mortgages and credit cards. Standard Chartered and local lenders Kotak Mahindra Bank and Axis Bank are also said to be interested, which SBI Cards and Payment Services is eyeing Citi’s credit card portfolio there.

    DBS has always been open to exploring sensible bolt-on opportunities in markets where we have a consumer banking franchise (China, India, Indonesia and Taiwan), a bank spokesperson said.

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  • Citigroup to exit consumer banking in Vietnam

    Citigroup to exit consumer banking in Vietnam

    America’s Citigroup will exit 13 international consumer banking markets, including Vietnam, to shift its focus to four wealth centers.

    The move is part of the bank’s strategic decision to direct investments and resources to businesses with the greatest scale and growth potential, it stated, adding its main markets will include Singapore, Hong Kong, the United Arab Emirates and London.

    Apart from Vietnam, 12 other markets to be affected are Australia, Bahrain, China, India, Indonesia, South Korea, Malaysia, the Philippines, Poland, Russia, Taiwan and Thailand.

    “While the other 13 markets have excellent businesses, we don’t have the scale we need to compete. We believe our capital, investment dollars and other resources are better deployed against higher returning opportunities in wealth management and our institutional businesses in Asia.”

    The bank has not specified when it would leave Vietnam.

    Citigroup in 1994 became the first U.S. financial institution licensed to open a branch in Hanoi. It opened its second branch in Ho Chi Minh City in 1998.

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  • Citi Boosts Hong Kong Wealth Headcount

    Citi Boosts Hong Kong Wealth Headcount

    Citi unveiled its hiring plans for its wealth management business in Hong Kong – one of the few remaining markets the bank will place its renewed focus on after announcing a series of planned exits.

    Citi will look to hire up to 500 people in its Hong Kong wealth unit, according to a statement.

    The hires will include 300 relationship managers in the next five years as part of plans to triple the number of clients and double assets under management (AUM) by 2025 in Hong Kong.

    With various Greater Bay Area initiatives, such as Wealth Management Connect on the horizon, the opportunities are strong for further client-led growth in Hong Kong wealth management,» said Hong Kong chief executive and consumer business manager Lawrence Lam.

    Hong Kong is one of the four wealth hubs where Citi will operate its consumer banking business after it announced planned exits to 13 markets in Asia and EMEA.

    The remaining hubs are London, UAE and Singapore where it also aims to triple its clients and double AUM by 2025.

    The latest Hong Kong hiring ambitions for the Hong Kong wealth unit follow previously announced plans to hire up to 1,700 people across businesses in the city.

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  • Citi Names Wealth Co-Heads for Asia Pacific

    Citi Names Wealth Co-Heads for Asia Pacific

    Citi made a raft of new appointments to its wealth management unit including the promotion of its Asia head of private banking.

    Citi named Steven Lo co-head of the wealth unit in the region alongside APAC head of retail banking Fabio Fontainha, according to an internal memo.

    Lo was named Asia head of the private bank in 2017, succeeding ex-head Bassam Salem.

    The bank also appointed Ida Liu – most recently head of the private bank in North America – as the global head of private banking, overseeing the bank’s private capital group, global trust, and private bank global marketing operations.

    Other notable appointments for the wealth business include chief operating officer Eduardo A. Martinez Campos and chief of staff Running Du.

    Chief investment officer and global head of investments David Bailin will form a group that combines investment teams from the private bank and consumer bank globally.

    Head of investment finance for the private bank Giuliano Malacarne will expand his remit and coordinate the delivery of banking and lending products to wealthy clients.

    The appointments coincide with the bank’s reorganization of its wealth business to encompass the full spectrum from emerging affluent to high net worth clients.

    Our clients are looking for more — whether it’s access to investment opportunities and advice, tools and analytics, a focus on environmental, social and governance concerns or more engaging digital experiences, said Jim O’Donnell, Citi’s head of global wealth in the memo.

  • Citi Appoints Senior China Corporate Banker

    Citi Appoints Senior China Corporate Banker

    Citi appoints a senior corporate banker for China, amid growing expansion in the mainland market.

    Luke Lu has been named head of corporates coverage for China, reporting to Citibank China CEO Christine Lam and APAC head of corporate banking Kaleem Rizvi.

    A spokesperson for the bank confirmed the new appointment.

    Lu has 20 years of banking experience and was most recently head of Citi Commercial Bank in China after rejoining the American lender in 2019. Previously, he was with MUFG Bank China where he was the head of its global corporate bank for two years.

    Lu’s appointment occurs in the midst of increasing growth at Citi’s corporate banking unit in China.

    According to the note, Citi is serving an increasing number of companies in the mainland market and last year alone, it raised over $30 billion for Chinese clients in global capital markets across debt and equity.

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  • Citi Names Head of Asia Consumer Bank

    Citi Names Head of Asia Consumer Bank

    He takes over from Gonzalo Luchetti, who was named U.S. consumer banking head, as reported in January.

    Citi has named Kartik Mani as its new consumer banking head for Asia, according to an internal memo Mani will report to Anand Selva, global consumer bank CEO and Peter Babej, Citi’s Asia Pacific CEO,  and join the bank’s Asia Pacific Operating Committee.

    Mani joined Citi in July 2020 as consumer head for China, Hong Kong, Taiwan, Korea and Australia, and cards and loans head APAC and EMEA. He previously held global and regional senior leadership roles at American Express, Standard Chartered, HSBC and Lloyds.

    Babej described Mani as a digitally focused leader who is able to deliver growth while maintaining strong discipline on risk and controls, noting that he led the revitalization of Citi’s Cards and Lending business in Asia, while deftly navigating the pandemic.

    It’s imperative that we continue to execute on our strategic priorities in Asia as we transform our business model and continue to digitize, Babej said in the note.

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  • Citi Private Bank Loses China Heavyweight

    Citi Private Bank Loses China Heavyweight

    Citi Private Bank loses several within its mainland China coverage team, including a veteran relationship manager.

    Citi Private Bank’s global market manager for southern mainland China, Kevin King, has resigned from the bank, sources said. In addition, another four have also left the China team at the private bank.

    A spokesperson for the bank declined to comment.

    King spent a decade with Citi Private Bank covering the China market after kicking off his private wealth career with UBS and J. Safra Sarasin. Prior to joining the industry, he worked at the Hong Kong Trade Development Council where he focused on developing relations with the Greater China business community.

    The departures occurred in the midst of a new organizational structure for Citi’s private banking arm.

    Previously a standalone business, the American lender will now run all its wealth management businesses under a single unit, merging teams that cover the full range of clients from retail to ultra-high net worth individuals. The new unit will be led by ex-global head of investor sales and relationship management Jim O’Donnell.

    Last year, Citi’s merged wealth management businesses in Asia Pacific posted record-high net new money of $20 billion, a 10 percent year-on-year increase, according to the bank. This led assets under management to grow to $238 billion with a client base that includes approximately one-third of all billionaires in the region.

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  • Citi Rolls Out Digital-Only Offering in Hong Kong

    Citi Rolls Out Digital-Only Offering in Hong Kong

    The Citi Plusdigital wealth platform was officially rolled out on Monday in Hong Kong, following a pilot launch in December 2020.

    Catered to digital natives, Citi Plus offers personalized wealth management information and knowledge kits for clients and introduces gamification to build healthy financial habits and achieve targets responsibly.

    Millennials were invited to participate in research and the co-creation process, through which we could better address target clients’ pain points, and help them grow their wealth via the new service, Lawrence Lam, Citibank Hong Kong consumer business manager, said.

    The bank said it will launch the platform in other markets in the Asia Pacific region in the future, and is looking to add up to 200,000 clients over the next few years with a target of doubling its base within the next 24 months.

    Citi Plus offers stocks, money market funds, as well as an array of mutual funds primarily from ASI, Allianz Global Investors and Franklin Templeton, are offered on the platform.

    ASI said the partnership is an important part of the firm’s regional distribution strategy for 2021, according to a statement. We’re excited to play our part in enabling a new generation of digital-native investors to take control of their finances and invest for a better future, Andrew Hendry, ASI head of distribution Asia Pacific, said.

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  • Citi Mulls Sale of Consumer Units in Asia

    Citi Mulls Sale of Consumer Units in Asia

    Citigroup is exploring the possibility of downsizing its consumer business worldwide with an eye on selling some of its businesses in the Asia Pacific region.

    Consumer banking units in South Korea, Thailand, the Philippines and Australia were named for potential divesture, according to a report citing unnamed sources. The Mexico consumer unit is also being reviewed, though a sale is less likely.

    No decisions have been made and there is still a possibility that no divestitures will be made.

    While Citi may potentially exit some markets in Asia, it could signal sharpened focus in other ones.

    In Singapore, the bank recently rolled out its largest wealth advisory hub with a 30,000 square feet space that can house over 300 relationship managers and product specialists. Citi aims to double its wealth management market share and boost clients by double-digit percentages in the coming years.

    In rival hub Hong Kong, net new money inflows soared 44 percent in 2020 with the wealth management (9 percent), institutional (10 percent) and treasury (5 percent) business all seeing positive revenue growth.

    Globally, the bank saw profits plunge 41 percent to $4.6 billion with a 10 percent drop in revenues to $16.5 billion. Outgoing chief executive Michael Corbat subsequently saw his compensation slashed by 21 percent to $19 million.

    As our incoming CEO Jane Fraser said in January, we are undertaking a dispassionate and thorough review of our strategy, including our mix of businesses and how they fit together,» according to a spokesperson for the bank.

    As you would expect, many different options are being considered and we will take the right amount of time before making any decisions.»

  • Citi Hong Kong Bucks Groupwide Profit Trend

    Citi Hong Kong Bucks Groupwide Profit Trend

    Citi’s Hong Kong businesses registered growth across the board, according to an internal memo seen, despite a more than 40 percent drop in profit for the overall group. Citi Hong Kong’s consumer business saw a 44 percent increase in net new money inflows with 9 percent revenue growth in wealth management in 2020, according to an internal memo seen.

    Within its institutional business, banking revenues were up 10 percent, backed by a 61 percent increase in investment banking. The memo highlighted equity deals Xinyi Solar and Kerry Express Thailand, the secondary listing of Yum China, and advisory for the privatization of Li & Fung.

    Its markets business saw 5 percent growth with its treasury unit as the major revenue performer, benefitting from low-interest rates.

    According to Citi’s Hong Kong and Macau CEO Angel Ng, Asia remains key to the success of the bank’s wealth strategy which includes its recent move to merge the whole business from affluent to ultra-high net worth clients. She also highlighted digitalization, Greater Bay Area, and other areas of focus for the business.

    A spokesperson confirmed the contents of the memo.

    The Hong Kong unit contrasts with that of Citi’s global results which posted flat revenues year-on-year at $74.3 billion with profits down 41 percent to $11.4 billion.

  • Citi Registers Record-High Wealth Inflows in APAC

    Citi Registers Record-High Wealth Inflows in APAC

    Citi in Asia Pacific posted record-high net new money of $20 billion across its wealth management business in the region. This represents a 10 percent year-on-year increase, according to a statement from the bank, and pushes total assets under management across the wealth business to $238 billion with approximately one-third of billionaires in the region as its clients.

    The figures include the whole wealth business covering from emerging affluent to ultra-high net worth clients including Citi Priority, Citigold, Citigold Private Client, and Citi Private Bank.

    The Asia Pacific wealth market stands out in its scale and growth potential. And this is not a cyclical opportunity – it is structural, driven by the emergence of a vast middle class and the rapid development of regional capital markets, said Peter Babej, Citi’s APAC CEO. Along with macro-level asset growth, Asian customers increasingly require portfolio advice, design and allocation geared toward diversification of asset types and geographic exposures.

    Not unlike its industry competitors, Citi is also boosting investments in technology with a new mobile banking platform that boasts enhanced wealth management tools and user growth of over 1 million.

    As we grow our wealth operations, we are focused on first-rate service – and that means staying ahead in technology, Babej said.

    Clients increasingly want world-class advisory delivered on their preferred terms – online, face-to-face, or both. Our wealth centers, with world-class RMs leveraging digital wealth management solutions, are geared to delivering the customized value propositions that our clients require.

    Also not unlike others, Citi also believes that the human touch remains very much relevant in the wealth management industry despite rapid technological advancements. The bank’s relationship managers are currently trained by the Citi Wharton Global Institute, a joint executive education program launched with business school Wharton in 2015.

    We continually invest in both our people and our technology to remain at the forefront of this fast-moving business,” Babej added.

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  • Citi Launches Hiring Spree in Singapore

    Citi Launches Hiring Spree in Singapore

    Citibank Singapore is set to see a vitalized drive towards expansion as the American lender shared major targets on hiring, assets and clients following the launch of its new wealth hub in Orchard.

    Citi will look to double its assets – currently with $280 billion under management – and triple the number of clients by 2025, according to a report.

    To achieve this, the bank will also look to hire over 330 relationship managers.

    Alongside the latest opening of its wealth hub – a four-floor 30,000 square feet space that can accommodate over 500 people with current restrictions and an extra 100 without – the bank is also seeking to build one or two more hubs in the city-state but no timeline was shared. It also has over 70 wealth hubs and client centers in the broader region to serve its affluent customers.

    One of the key reasons for the selection of Singapore as the hub of choice, according to Citi’s head of consumer banking for Asia Pacic and Europe, Middle East and Africa Gonzalo Luchetti, is trust.

    You have a stable, well-tested framework, under which you can operate, he said. It gives clients the trust that you really need in the business of wealth.»

    In addition, Luchetti also highlighted the geographical location, a strong economy, large amounts of local wealth and talent pool as other reasons.

    In line with the overall industry trend, Citi has benefited in digital adoption in a model Luchetti described as «light-physical, high-digital».

    Less than 1 percent of transactions in Singapore executed at branches and year-to-date, retail sales of mutual funds digitally doubled compared to the same period in 2019.

    Although the bank has reduced space occupied – 10 outlets in Singapore, down from 14 at the start of the year – it maintains that a physical presence and human touch from relationship managers will continue to matter.

    One of the bank’s key strategic approaches will be to leverage its overall network and capabilities to serve the full spectrum of wealth – from the emerging affluent to ultra-high net worth individuals – by creating closer links between the private bank and the global consumer bank, benefiting from the former’s product capabilities and the latter’s transactional capabilities.

    The ability to offer mass affluent clients the type of access to global and institutional caliber insights from the private bank sets Citi apart, Luchetti added.

    This is one of the key things that we see as our differentiators – that we can grow with our clients as their wealth journey moves forward.