Citi Banks On Emerging Markets For Fastest Growth

Nick Parmee

16 February 2010

London-based Jane Fraser, head of Citi's private banking division, has told Reuters the US bank expects the proportion of client assets from the Americas to fall to a third in five years, as it takes aim at ultra high net worth clients with at least $25 million.

Despite a reputational beating for the industry as a whole, Citigroup has seen a net gain of clients over the last 12 months, Ms Fraser said, reversing an earlier outflow.

Looking to Asia, currently representing about a third of clients and assets, Ms Fraser said: "That's where a lot of the growth is going to be... That's where a lot of the conversations are going right now."

Ms Fraser ran the divestiture programme that brought in over $20 billion through the disposal of 25 business units and has led the private bank since mid-2009. She now says: "You can't turn yourself into a modern private bank... if you don't do some upgrading... and don't invest."

Ms Fraser sees growth in the private banking market at twice the rate of global GDP. “A good private bank should be able to build its market share by increasing revenues by 50 per cent more than that, and Citi plans to do better still,” she said.