Citigroup Aims To Extend Footprint In Asia-Pacific Region

Per a Financial Times article, Citigroup C is planning to serve clients in Asia with assets as low as $50,000, with services that it generally provides to the high-end clients.

The bank is providing portfolio diversification and wealth planning services to its Citigold and Citi priority customers. Citi priority covers clients with assets of about $50,000-$150,000 while Citigold provides to those with assets in the range of $150,000 to $10 million.

After having grown assets by 17% in 2017 in the Asia-Pacific region, the New York-based lender is seeking to achieve similar growth rate in the region in the current year.

Citigroup offers its high-end clients in some parts of Asia — diversification index — which warns them of being significantly exposed to certain assets along with back-testing portfolios for previous crises.

In 2018, the bank will spread this index's approach more widely along with a total wealth adviser platform. The platform enables relationship managers to track client portfolios in real time.

Gonzalo Luchetti, head of retail banking operations in Asia Pacific for Citigroup, expects assets under management to grow indouble digits in the years ahead on the back technological developments. He also noted that the bank has more than 80% of its relationship managers based in hubs, which will drive growth.

Citigroup, with its global footprint and attractive core business, seems to be well poised for growth. Also, backed by an improving domestic economy amid the rising rate environment, as well as anticipated potential ease of regulations under President Trump's administration, the bank is likely to continue delivering strong results in quarters ahead.

Shares of Citigroup have gained 26.9% over the past year, outperforming 14.9% rally for the industry it belongs to.