BANKING giant Citigroup would be the first to admit that it would take some time before its operations in the United States get back to where they were before the onset of the subprime crisis, which eventually led to a global economic downturn from which most countries are still recovering.

The crisis, described as the worst since the Great Depression of the 1930s, has been declared over as the US economy has finally been able to post growth since the collapse of Lehman Brothers in 2008. But the United States remains weak, and the consensus among analysts and economists is that real and sustained recovery is still far off the horizon.

One bright spot for Citigroup, however, is Asia.

Holding its own

While the region was not immune to the crisis, Asia has been able to hold its own and its banking sector has remained strong.

That spells opportunities for Citigroup, and Shirish Apte, Citigroup’s chief executive for Asia Pacific, wants to make sure that the bank takes advantage of those chances to become even a stronger presence in the region.

Apte was in the Philippines recently to check on operations here and he took some time to talk to the Inquirer about where Citi Asia is headed and how important Asia is to its future.

Question: What is Citi’s Asia portfolio today and what markets do you consider the fastest growing in the region?

Apte: Our Asian footprint is second to none. China and India are markets that are always highlighted for expansion or growth plans. They are important to us but we also have very large and successful businesses in the Philippines, Singapore, Malaysia, Indonesia, Hong Kong, South Korea, Taiwan, for example.

We are present in 18 markets in Asia Pacific, and offer the full spectrum of financial services through close to 630 branches serving 32 million consumer customers. We also serve the region’s top local and multi-national corporations, other financial institutions, governments and their entities, and investors around the world.

Question: Where do you see the growth for you in this part of the world going forward?

Apte: Asia presents huge opportunities for Citi. The region’s key economic and demographic drivers play to our key strengths. Consider this—Asian economies are growing at two to three times faster than developed markets and regional GDP is 14.4 trillion. In 2008, trade volumes in the region reached 9 trillion. This region is home to 3.4 billion people, including a fast-growing middle class, who need basic retail banking services. There is a large and growing mass affluent segment in Asia Pacific despite the impact of the global economic crisis on personal wealth over the past two years.

Our Asian franchise is aligned to all of these opportunities.

Global leaders

More Asian companies are global leaders in their respective industries with sophisticated needs, and need our support in debt and equity financing, currencies and rates hedging, liquidity and cash management, M&A and advisory. Today, eight out of the 10 largest global firms by market cap are Asian compared to none in 1990.

We are confident our global platform, global and regional relationships and our continued investment in the business and people stand Citi in good stead in the region to take advantage of future opportunities.

Question: How important is the Philippines in Citi’s Asia portfolio?

Apte: Citi has operated in the Philippines since 1902 and we are proud of our history in helping build the financial infrastructure of the country, which has included leading the development and growth of the ATM in the Philippines; the issuance of the first corporate dollar check; the development and implementation of the Philippine Domestic Dollar Transfer System, which Citi remains the sole settlement bank since inception in 1994. These are just a handful of some of firsts we have achieved in the local market.

As one of our key markets in the region, we have periodically increased our capital investment in the bank. Last year, we increased our equity investment in Citibank Savings Inc. with an additional $20million capital increase.

We see many opportunities for growth in the consumer and retail sector—one of the most exciting is our early move to take a leadership position in the mobile banking space. The business has invested heavily on an integrated system for our consumer business.

Citi is also the largest issuer of cards in the Philippines, and our wealth management business is one of the top five in terms of market share in Asia Pacific.

Question: There is increasing competition in the industry with several new players setting up shop. What specific challenges do you foresee for Citi in the Philippines?

Apte: We welcome the competition—it motivates us to continue to raise the bar in financial services and customers generally benefit from increased competition in the marketplace. We have always focused our efforts on continuously bringing new and innovative products to the market and our customers recognize this and reward us with their loyalty.

Our focus on delivering ‘One Citi’— which is the full range of all our products and services in a seamless way, tailored to what our clients need—serves as a key differentiator for us. One Citi allows us to address the needs of our clients—from corporations to individuals—leveraging on the strength of our whole franchise.

Question: Your competitors have also become more aggressive in seeking market share in the region. How are you coping in this front?

Apte: Citi employees across Asia Pacific speak to thousands of clients across this region everyday. Many of our clients have been our banking partner for many years and understand our strategy and our strong commitment to Asia Pacific.

We are the trusted advisor to corporations, financial institutions and governments across the region. In recent months, we led bond issues for the Republic of Korea, Republic of Indonesia and the Republic of Philippines. These underline the trust placed in Citi by governments across the region.

Question: Do you plan to make any new investments in Asia?

Apte: We continue to invest across Asia to support our growth. One visible example is in branch expansion. Just a couple of weeks ago, we opened our first consumer branch in Vietnam. Also, this year, we have opened branches in Singapore’s Holland Village, Hong Kong Admiralty and Kowloon Tong, Chongqing in China, announced four new branches in Malaysia and the establishment of Islamic subsidiary, and in Indonesia new branches in Makassar and Palembang.