Citibank's wealth management business thriving

 

CITIBANK Bhd expects to see double-digit growth in its affluent customer base this year despite the current weak financial climate, beating the estimated industry growth rate of seven per cent.

Affluent customers are those with investible assets of more than US$100 million (RM354 million).

"We still expect double-digit growth this year because the affluent segment in Malaysia is growing," said Timothy Johnson, head of segment and marketing at the retail bank.

Data show that between 2001 and 2005, there has been double-digit growth in that segment throughout Asia, including Malaysia, in terms of wealth creation, said Michellina Triwardhany, country business head for consumer banking.

"I think the creation of wealth is an ongoing process. So, the current financial situation is part of a normal economic cycle, and we expect that wealth preservation as well as wealth creation will become a key component for our Malaysian and general customers," she said.

The two officials were speaking to reporters in Kuala Lumpur yesterday after launching "Citigold Global Banking", a new wealth management service catering for Citigold customers with cross-border needs.

Citigold is the bank's wealth management business serving the affluent client segment. The bank has more than 30,000 Citigold customers in Malaysia.

Citigold Global Banking, targeted at frequent travellers, expatriates and gobal investors, offers cusomers easier access in opening bank accounts in destination countries, immediate access to a credit card upon arrival, emergency cash withdrawals and preferential foreign exchange rates.

Offered free of charge, the service is for customers with a minimum portfolio value of RM200,000. The service will be available in 43 countries by the first quarter of next year, from 31 currently.

"With this service, our customers' local banking can now seamlessly merge with their global banking requirements, using Citi's global reach, scale and expertise," Triwardhany said.

On its lending activities, she said the bank expected loan growth to be stable this year.

She also said that the bank had no plans to lower its housing loan interest rate at the moment.