Citi Private Bank sees opportunities in S’pore, region in 2024 as it completes most of job cuts

Share

Citi
Share

SINGAPORE – Citi Private Bank has completed most of its job cuts and is optimistic about 2024 as it gains new clients in Singapore as well as the region, and grows its core assets under management by double-digits.

Ms. Ida Liu, global head of the private banking unit of Citigroup, told The Straits Times on May 27 during a visit to Singapore that the recent spate of layoffs is “more or less done”.

“I can’t say no more cuts because there are always normal courses of business reductions, but I can say that the majority has been done.

“We are focused on the future. We’ve already done what we need to do to get fit in the business and we’re focusing on delivering growth from here,” she said.

Citigroup is in the midst of a global overhaul and had said it would eliminate 20,000 jobs by 2026 as part of efforts to improve profitability.

Citi Private Bank, which serves a third of the billionaires in Asia, had a strong start to 2024, Ms Liu said.

“We moved on to a very positive story for 2024. I’m very confident that the ship is turning in the right direction,” she said.

It has been laying the groundwork to boost its business by adding new clients, deepening investments, and focusing on delivering better returns.

The numbers for April and part of May have shown sustained growth.

“I’m feeling very optimistic about the outlook for the business going into the second quarter as well. Suffice it to say that I hope we are over last year,” Ms Liu said.

In the first three months of this year, Citi Private Bank logged US$571 million (S$769.5 million) in revenue, up 1 percent on the year, following a 10 percent drop in the fourth quarter of 2023.

The gain was fuelled by improved deposit spreads and investment fee revenues. Estimated client investment assets under management, trust, and custody assets in Citi’s wealth business rose 12 percent from a year earlier to US$515 billion.

Asia is expected to see the strongest growth in ultra-high-net-worth individuals (UHNWI), or those with a net worth of US$30 million or more, with trillions in assets expected to be passed on to the younger generation over the next two decades.

According to a Knight Frank wealth report, Singapore’s UHNWI population rose 4 percent from 2022 to 2023 and is expected to grow 15.7 percent heading into 2028. Hong Kong’s UHNWI population rose 2.5 percent over the same period and is expected to grow 22.4 percent from 2023 to 2028.

Singapore and Hong Kong continue to be attractive wealth hubs for the super-rich looking to diversify. Citi has two other wealth hubs – in London and the United Arab Emirates.

On Dec 31, 2023, Hong Kong was home to over 2,700 single-family offices (SFOs), according to a Deloitte report while the Singapore Government noted that 1,400 SFOs have been awarded tax incentives.

Ms Liu said Citi Private Bank sees opportunities to capture the wallets of next-generation investors and female clients. Women control a third of the global wealth today and will control over half in the next decade, the banker said.

Another major opportunity lies in leveraging the private banks’ Global Client Service, a one-stop solution for clients, their families, and their companies globally.

Most of Citi’s clients in Asia have family members living in the United States, Europe, and other parts of the world. They can tap Citi’s physical presence in 95 countries.

This advantage has enabled Citi to provide “best in class” investment ideas to clients, Ms Liu said.

The bank established operations in Singapore on July 1, 1902. It was then known as the International Banking Corporation and was the first US bank to set up a branch here.

Globally, clients are looking to extend the duration of fixed-income portfolios to lock in higher interest rates for longer in anticipation of rate cuts by the US Federal Reserve later this year.

They have also pivoted to the stock markets for investment opportunities.

Ms Liu said while the S&P 500 Index has been driven by large tech stocks, there is hidden value among the small- and mid-cap stocks, which offer investment opportunities in technology, healthcare and clean energy.

“We think it’s important to have a global view right now given how high the US market has gone. We believe that there’s some emerging markets that will benefit more in the future, particularly from the US-China bifurcation. So geographic diversification is important,” she said.

Apart from bonds and equities, clients have shown an increased appetite to diversify into private equity, direct investments, and alternative investments.

Share

Latest

Related Content

Edmund Shing, PhD

Global Chief Investment Officer
BNP Paribas Wealth Management

Edmund has over 29 years of experience in financial markets in a wide variety of positions, ranging from proprietary trading to portfolio manager in a number of financial institutions in London and Paris.  He previously held the role of Global Head of Equity and Derivative Strategy at BNP Paribas in London from 2015 to 2020, and has been Chief Investment Officer at BNP Paribas Wealth Management since November 2020.

Edmund is responsible for piloting our investment strategy and will continues to rollout out recommendations and themes with actionable advice that brings our expertise to our clients and support to our client-facing teams.  In this time of change, his expertise in following and anticipating markets is a true value added for both our customers and those at Wealth Management who serve them.

Edmund has a PhD in Cognitive and Computing Science from the University of Birmingham in the United Kingdom, and has done advanced studies in Knowledge-Based Systems and in Experimental Psychology.  He is an EFFAS-certified financial analyst. He has also authored the book “The Idle Investor” published by Harriman House in 2015, proposing 3 simple investment strategies that take only a few minutes to execute per month.

Media Kit

    Data Protection

    The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

    The Digital Banker Summit

    Moving on from FTX: is 2023 the year of CBDCs?

    Indonesia, Jakarta

    Thailand, Bangkok

    Philippines, Manila

    Contact Us

      Data Protection

      The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

      Request Nomination Pack

      Error: Contact form not found.

      The world’s preeminent Private Banks and Wealth Managers are demonstrating a committed drive in innovation, advisory, new products and services to meet the sophisticated needs of their clients.

      COVID-19
      Amid economic activity revival on the back of the Covid-19 vaccine program, organisations moving from business continuity plans to stable working environments, together with the slightest improvement in unemployment numbers, forced the world to adjust to new realities. Coming to terms with the “new normal”, global investors are now on the look-out for attractive and stable investment opportunities.

      Needs of Private Wealth customers and families worldwide have drastically changed due to the pandemic and banks have had to accelerate efforts to deploy a multi-channel service strategy and safeguard clients’ businesses and wealth against negative impacts of economic uncertainly.

      The Global Private Banking Innovation Awards will recognise the world’s best private banks, wealth managers and asset managers that are championing innovation across advisory, service, products, customer experience and more.

      Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. 

      Request Nomination Pack

      Error: Contact form not found.