Citigroup targets 200 more branches in Asia this year
Citigroup targets 200 more branches in Asia this year
Chan Sue Ling, Bloomberg/Singapore
Citigroup Inc., the world's biggest Financial services company, plans to open 200 more branches in Asia excluding Japan this year, Marge Magner, chairman of the bank's global consumer group, said on Wednesday.
The New York-based lender has about 400 branches in Asia outside of Japan, excluding those it inherited by acquiring other lenders such as Koram Bank in South Korea. The new branches will mostly be in India, Indonesia, Thailand, Australia and the Philippines.
"We'll be opening over 200 branches between consumer finance and retail banking here in Asia Pacific," Magner, who is also the chief executive of the lender's global consumer group, said at a media briefing. "The bulk of it will be consumer finance branches. A large number of it will be in India."
Citigroup is opening more branches as it battles rivals such as Standard Chartered Plc and HSBC Holdings Plc for a larger slice of the banking market in Asia. The bank has businesses in 17 countries in Asia, which it said is its largest contributor in terms of customers, sales and earnings outside of the U.S.
Net income from Asia excluding Japan climbed 56 percent to US$710 million in the fourth quarter from a year earlier, with the contribution from its consumer business rising 53 percent to $328 million, according to its Web site.
Citigroup last year added 338 branches in Asia excluding Japan, consisting of 96 that run the consumer finance business and the remainder in retail banking. The total included about 235 branches it inherited from the acquisition of Koram.
Branches offering consumer financing business can lend as little as $100 to families or individuals who don't qualify for traditional bank credit.
"In India, we have 185 branches (in consumer finance) and many of them opened in the last two years," Magner said. "It's a very strong business and we've grown well."
Citigroup has started offering such services in other countries such as Australia, Hong Kong, Indonesia, South Korea, Thailand and the Philippines, and plans to open more in the region, said Ashok Vaswani, chief executive of the bank's global consumer business in the Asia Pacific.
The bank said in January it will spend more than S$20 million ($12 million) to double its network of four branches and five cash-machine locations in Singapore.
Citigroup, Standard Chartered, ABN Amro Holding NV and some other foreign banks with "Qualifying Full Bank" licenses can set up cash machines and branches in 25 locations in Singapore starting this year. The previous limit was 15.