Citi’s Australia chief outlines growth focus
(10 February 2017 – Australia) According to a report from The Australian, Citi Australia’s country head has said the bank will focus on increasing it investment banking industry coverage and credit card partnerships.
David Livingstone, who took over from Stephen Roberts in mid-2016, was quoted by the publication as saying that Citi’s investment banking platform was “strong to very strong in certain areas.”
“I think where we have opportunity to improve is the breadth of clients we cover, which obviously has a sectorial element to it as well,” Livingstone added.
Livingstone said the bank could leverage its global network, citing the advice it provided Boral on its A$3.5 billion acquisition of US building products manufacturer Headwaters. According to him, the bank provided corporate clients additional services that don’t hit “above the fold in newspapers.”
Livingstone’s prior experience includes three years leading Credit Suisse’s Australian office, and vice chairman of that financial institution’s investment banking and capital markets division for Europe, Middle East and Africa region, plus serving as head of the M&A for the region.
Citibank has about A$6 billion of business loans, A$7 billion of mortgages, $4 billion of credit card loans and about A$18 billion of deposits. In calendar 2015, profit slid 16.5 percent to $189.7 million on weaker net interest income, according to the most recent accounts filed with the corporate regulator.
Livingstone outlined two areas of growth - bringing Citi’s digital and mobile innovations to Australia along with new products for high net worth clients.
He added that banks could not view their businesses as “annuity” streams that will repeatedly provide profits each year.
“I don’t think anyone operating in retail or wealth in Australia can look at is an annuity because there’s a degree of technology disruption and there’s a continued degree of increasing sophistication among consumers,” he said.
“They want more value and service for the same price.”
He added Citi’s global reach, including in Asia, and product set lent itself well to servicing more ultra high net worth clients who require both private banking and investment banking services, leading to greater cross referrals.
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