Citi Asia grows, supported by consumer bank
Last Friday Citi globally reported Q2 results – with US$17.9 billion in revenues and US$3.9 billion in net income. Asia was a strong contributor to the results with broad-based growth and revenue of US$3.4 billion, up 4% year-on-year. This was the fourth consecutive quarter of revenue growth year-on-year for Citi in Asia. Citi Asia’ growth was supported by the consumer banking business.
Citi’s consumer business grew revenues by 4% during the second quarter to US$1.8 billion, with profit up 9% year-on-year and 31% versus the previous quarter. Asia contributed nearly a third of all the profit generated by the bank’s consumer business in the second quarter.
Citi say their focus on digital is now paying off. Deposits grew by 5% year-on-year in Asia to US$95 billion. The bank’s refreshed wealth management business saw investment sales up 29% year-on-year as Citi captured greater market share with increased productivity with more competitive relationship managers in hubs. Cards loans were also up 6% boosted by increased digital sales.
During the second quarter, the bank’s digital transformation continued with the roll-out of Pay for Points across Asia with partners including Amazon, and in Hong Kong with Citi JetCo pay, a P2P money transfer app.
Citi says that in Asia it has deliberately reallocated resources away from its physical footprint to invest in its wealth management platform and digital capabilities as the bank moves further towards a true open architecture platform. The opening of Citi’s APIs means the bank now partners with 59 companies around the region. The bank is also building relationships with fintechs with events held in Hong Kong, Singapore and India this quarter.
17 Jul 2017