Citibank gives a boost to S'pore as wealth management hub

Citibank gives a boost to S'pore as wealth management hub

Revamp marks a major elevation of country in US bank's operations

By VEN SREENIVASAN

(SINGAPORE) In a major boost to Singapore's status as a wealth management hub, US banking giant Citibank has consolidated its Global Wealth Management's international division in Singapore and promoted its Singapore-based chief executive Deepak Sharma to lead the business.

Mr Sharma: In 5-10 years, the wealth management landscape will be 'unbelievable' in its wealth market size, talent and sophistication of products and services

Mr Sharma is now chief executive officer of Citi Global Wealth Management International - an enterprise that spans five continents, employs about 2,500 banking professionals and manages an estimated US$250 billion in assets of about 400,000 high net worth individuals. A high net worth individual is generally taken to be one with at least US$1 million in wealth excluding his or her primary home.

Mr Sharma assumed the position on April 5 - which, coincidentally, was his birthday - with a mandate to build and expand this international franchise and grow the bank's market share in some of the world's most dynamic markets of East Asia, South Asia, Latin America and eastern Europe.

The restructuring marks a major elevation of Singapore's status in Citi's global wealth management portfolio. In the past, the US multinational ran its Europe, Latin America, and the Asia-Pacific & Middle East businesses as three separate entities.

According to the Merrill Lynch Cap Gemini World Wealth Report 2006, there is an estimated US$23 trillion in wealth among 5.8 million high net worth individuals in the Asia-Pacific, Middle East, Europe and Latin America. The study also revealed that all 10 of the fastest growing countries in terms of the high net worth population were from outside the US - in descending order, they are South Korea, India, Russia, South Africa, Indonesia, Hong Kong, Saudi Arabia, Singapore, United Arab Emirates and Brazil.

But analysts note that penetration by wealth managers in these markets continues to be low. Mr Sharma says he is very excited to have the opportunity to grow the business out of Singapore. 'Having Singapore as the base for this huge international enterprise is a sign of the country's rise and appeals as a global hub for the wealth management business,' he says. 'It's not the present that excites me most. It's the future. I think in five to 10 years, the wealth management landscape would be quite unbelievable in terms of its size of the wealth market, the talent involved and the sophistication of products and services.'

The Monetary Authority of Singapore welcomes the news. 'Citigroup's decision to manage their global wealth management business out of Singapore is testimony to our status as an international financial hub,' says MAS deputy managing director Ong Chong Tee.

'Singapore's financial centre is underpinned by high standards of regulation and trust, as well as a pro-business operating environment. It is a good place to serve the region and we have drawn many international financial institutions to base regional and even global business lines here. In this regard, we welcome the appointment of Mr Deepak Sharma as CEO of Citigroup's Global Wealth Management International.'

Mr Sharma says the move underscores Citi's commitment to spread its businesses more evenly among many countries. 'The long-term vision is for the International business to rank alongside the US business in terms of size and capabilities,' he says. 'And this is not a pipe dream.'

Observers expect Citi's move to locate its global wealth management business here to boost the growth of talent and quicken the movement of funds to Singapore.

Singapore is already the operational hub for all of Citi's European transactions and investment activities.