Citi Posts All-Time High in APAC Net New Assets
In this article (4)
Citi’s wealth management business in Asia Pacific registered a record-high in net new assets during the first half.
Citi’s newly merged wealth management unit – Citi Global Wealth (CGW) – attracted nearly $15 billion in net new money across Asia Pacific, according to a statement, mostly from its wealth hubs in Hong Kong, Singapore, London and UAE.
This included $8 billion from the second quarter with assets under management growing 21 percent year-on-year.
Citi posted $6.19 billion of net income in the second quarter – a nearly six-fold increase compared to the same period last year.
Asset growth was supported by ongoing expansion at CGW which includes plans to add an extra 2,300 staff – including 1,100 relationship managers and private bankers – in order to add $150 billion in total client assets by 2025.
Year-to-date, the American bank has already added «several hundred wealth professionals» in APAC, the statement added.
«We are capturing market share as Asian clients increasingly require portfolio advice, design and allocation geared toward diversification of asset types and geographic exposures,» said Citi’s APAC chief executive Peter Babej. «As the world’s most global bank, with broad-based expertise across investment products, we are strongly positioned and fully committed to serving these needs.»
Questions & Answers
Q.Which specific regions contributed most significantly to Citi's record net new assets in Asia Pacific?
Which specific regions contributed most significantly to Citi's record net new assets in Asia Pacific?
The majority of the nearly $15 billion in net new money was attracted from wealth hubs located in Hong Kong, Singapore, London, and the UAE. These locations were key drivers of the first half's strong performance.
Q.What is Citi's target for total client assets by 2025, and how do they plan to achieve this?
What is Citi's target for total client assets by 2025, and how do they plan to achieve this?
Citi plans to add $150 billion in total client assets by 2025. This growth will be supported by ongoing expansion, including the addition of 2,300 new staff, with 1,100 of these being relationship managers and private bankers.
Q.What reason does Citi's APAC chief executive give for the bank's success in capturing market share?
What reason does Citi's APAC chief executive give for the bank's success in capturing market share?
Citi's APAC chief executive attributes the success to Asian clients increasingly seeking portfolio advice, design, and allocation. They require diversification of asset types and geographic exposures, which Citi is positioned to provide.
Reader pulse
Is Citi's aggressive wealth expansion a smart play?
19,608 votes so far