Asia PR News

SHANGHAI, March 29 /Xinhua-PRNewswire-AsiaNet/ –

Expects China to be Asia’s Largest Wealth Management Market within a Decade

Citigroup opened its first Private Bank office in mainland China today at a
ceremony at Citigroup Tower attended by Todd Thomson, Chairman & Chief
Executive Officer of Citigroup Global Wealth Management.

(Photo: http://xprnnews.xfn.info/Citigroup/CitigroupPhoto3.htm )

The Citigroup Private Bank business model, as practised in the United
States and other markets, is centred on a holistic approach to wealth
management for both individuals and businesses throughout the wealth creation
cycle.

The new Shanghai Private Bank office (which will operate as a unit of
Citibank, N.A., Shanghai Branch) underlines Citigroup’s commitment to taking a
leadership position in serving the nascent Chinese wealth management market,
which Citigroup believes could be the largest wealth management market in Asia
(excluding Japan) within a decade.

Citing China’s entrepreneurial culture, high savings rate and fast-paced
modernisation of its banking sector, Mr. Thomson said: "In 10 years, probably
less, we may be witnessing Asia’s single largest market in terms of investible
assets among the high net worth population."

"This is an investment for the future. Building a modern banking system
has been one of the country’s priorities since the late 1980s. We want to play
an active role in the growth and development of China’s wealth management
sector," said Mr. Thomson.

Presently, the office will offer approved foreign currency products to
Chinese and foreign residents and approved local currency products to foreign
residents. Over time, the product suite will be expanded, as regulations
permit.

Private Investment Banking
Mr. Thomson continued: "We are excited to deliver the global experience of
Citigroup to China’s entrepreneurs and to help develop the nascent wealth
management market. Through the Citigroup Private Bank, these entrepreneurs
will now have a window into the global opportunities, information and
relationships of the world’s largest bank."

"In addition to asset allocation and planning for their local financial
services needs, the Citigroup Private Bank is uniquely positioned to offer a
wide range of advice to entrepreneurs as they build their businesses for the
future and consider capital needs. We will share with our clients our
knowledge of global capital markets and provide them networking opportunities
with their business industry counterparts around the world, many of whom are
also our clients. We will also work with these entrepreneurs as they build
their wealth to ensure they protect and grow it for future generations."

The Citigroup Private Bank has a strong track record in developing a
business from scratch in many emerging markets across the world. In the
Asia-Pacific region, Citigroup has the largest footprint of the private banks,
with offices in 11 countries including China. It manages nearly US$60 billion
in client’s assets. More than 6,000 high net worth individuals (at least USD10
million in net worth), including half of Asia (ex-Japan)’s billionaires, count
as clients of The Citigroup Private Bank.

Leveraging the Citigroup franchise in China
It is also anticipated that The Citigroup Private Bank will establish
offices in other Citibank branches in China with regulatory approval.

"The Citigroup Private Bank already has some significant competitive
advantages in China given the long history and strong position in the country
of its parent company, Citigroup," said Richard Stanley, Citigroup’s Chief
Executive Officer for China.

"There are many opportunities for synergies between the private bank and
our existing operations in China, and we look forward to the private bank
becoming an integral part of the Citigroup franchise, as we continue to expand
our coverage of financial services in the China market," Mr. Stanley said.

"Our immediate focus is to organically grow our wealth management business
in China through the local office and by leveraging the network of Citigroup’s
corporate and investment banking and retail banking franchise," said Deepak
Sharma, Chief Executive Officer of Citigroup Global Wealth Management
Asia-Pacific & Middle East.

"In addition, our new office will provide Citigroup an opportunity to take
a leadership role in helping to train and develop local wealth management
professionals," he said.

Citigroup’s roots in China date back to 1902 with the establishment of a
commercial banking office in Shanghai. Today, Citigroup’s China operation
serves a broad base of customers including multinationals, joint ventures,
local enterprises and residents. Its business by products covers a wide
spectrum of consumer, commercial and merchant banking activities.

Growing Wealth Market in China
Mr Sharma added: "China is among the fastest growing economies in the
world, and its high net worth population is expanding in tandem, demanding a
more sophisticated range of financial instruments to help them meet their
wealth management needs and goals."

According to one industry study, China accounted for US$910 billion in
Assets Under Management (AUM) among the affluent (minimum US$100,000 in net
worth) in 2004, of which US$ 530 billion were held by ‘millionaire households’
(with AUM of at least US$1 million). (1)
(1) Boston Consulting Group Global Wealth Report 2005

Another industry report estimates that there are at least 300,000
millionaires in China. (2)
(2) Merrill Lynch Cap Gemini World Wealth Report 2005

Looking ahead, total AUM in China is expected to grow to $1.73 trillion by
2009 at a CAGR of nearly 14% per annum, ranking China as one of the fastest
growing markets in the world. (3)
(3) Boston Consulting Group Global Wealth Report 2005

About The Citigroup Private Bank
The Citigroup Private Bank, one of the largest private banking businesses
in the world, provides personalized wealth management services for clients
through 126 offices in 90 cities in 37 countries. The Citigroup Private Bank
offers unmatched global reach, coupled with a full range of portfolio
management and investment advisory services, an array of structured lending and
banking services, as well as expertise from the Global Corporate and Investment
Bank. Citigroup Private Bankers act as financial architects, designing and
coordinating insightful solutions for individual client needs, with an emphasis
on personalized, confidential service. The Citigroup Private Bank provides
services and products through various Citigroup affiliates. Not all services
and products are available at all locations.

About Citigroup
Citigroup (NYSE: C), the leading global financial services company, has
some 200 million customer accounts and does business in more than 100
countries, providing consumers, corporations, governments and institutions with
a broad range of financial products and services, including consumer banking
and credit, corporate and investment banking, insurance, securities brokerage,
and asset management. Major brand names under Citigroup’s trademark red
umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, and Banamex.
Additional information may be found at www.citigroup.com .

Issued by The Citigroup Private Bank, a business unit of Citibank N.A.
Shanghai Branch.

For further information:

MR STEPHEN R THOMAS
Citigroup Corporate Affairs China
Tel: +86-21-28966369
Fax: +86-21-58795933
Email: stephen.r.thomas@citigroup.com

MR JACK SUNG
Corporate Communications
Citigroup Global Wealth Management - Asia-Pacific & Middle East
Singapore
Tel: +65-63284532
HP: +65-96679411
Email: jack.sung@citigroup.com

SOURCE The Citigroup Private Bank