Citigroup, Inc (NYSE: C) Loses Investment Banking Market Share in Europe

Citigroup, Inc (NYSE: C) is losing some of its investment banking market share in Europe after 12 European managing directors left the company to competitors including  Bank of America Corp (NYSE: BAC) and Barclays PLC (NYSE: BCS).

Citigroup fell from first to eight in providing advice on mergers and acquisitions in European transactions valued at $61 billion, compared to $140 billion during the same period in 2009.

Rochdale Securities analyst Richard Bove said that  “Citigroup’s primary objective right now is to rebuild its balance sheet and prove to the market that it is functioning properly.” He reiterated a “buy” rating on the stock, but said that “until it can do that, everything else is secondary.”

Citigroup, Inc (NYSE: C) has not led a single IPO in Europe, the Middle East or Africa in 2010 after underwriting only one in 2010. Between 2006 and 2008, Citigroup had arranged 43 IPOs between 2006 and 2008, but Citigroup didn’t lead a single one of the 85 IPOs in the region which was launched this year.  Citigroup, Inc (NYSE: C) received a 9^th place ranking on M&A advice this year, down from fifth place last year. In Asia, Citigroup dropped from 4^th place to 17^th.

Many of the executives which worked on M&A activity that moved to new firms said that they left because of slowing deal-flow and that Citigroup’s prospects for bonuses were shrinking.

“Several of the departures were mutual, and in some cases welcome,” Citigroup said in an e-mailed statement to Bloomberg. “We have also made a number of important new senior hires, and plan to announce more over the next few weeks. Our banking franchise in Europe, Middle East and Africa is vibrant and expanding.”

Citigroup Inc. (Citigroup) is a global diversified financial services holding company. The Company provides consumers, corporations, governments and institutions with a range of financial products and services. As of December 31, 2009, Citigroup had approximately 200 million customer accounts and did business in more than 140 countries. Citigroup operates through two primary business segments: Citicorp, consisting of its Regional Consumer Banking (RCB) businesses and Institutional Clients Group (ICG), and Citi Holdings, consisting of its Brokerage and Asset Management (BAM), Local Consumer Lending (LCL), and Special Asset Pool (SAP). In April 2010, Barclays PLC acquired Italian credit card business of Citibank International Bank plc. In May 2010, the Company announced the creation of a new Collateral Management Services unit within its Securities and Fund Services business.

Shares of Citigroup, Inc (NYSE: C) traded down 0.88% during mid-day trading on Monday, hitting $3.95.