Citibank (NYSE: C) to Increase Asia Securities and Funds Staff by 10-12%

Citibank’s (NYSE: C) securities and fund services unit in Asia plans to expand its base of staff by 10% to 12% during the next year as the company’s asset management business in the region grows quickly.

Executives at the Citibank said they are seeing a new wave of small and medium sized asset management firms which are looking to expand into Asia, at the same time that Asian firms are looking to move out of their home markets.

“Funds in North America and Europe are coming here and looking at how to create the right business model,” said Neeraj Sahai, global business head of Citibank’s securities and fund services group. The company said that large western firms such as Fidelity International have already moved into Asia and that the next wave will be small to midsize firms.

Asian firms are also looking to expand outside of their home countries. “In the past, a few Japanese firms have expanded. Now the top 10 from Korea, Japan, Taiwan and China are expanding” seek partnerships with like-minded executives in other regions, said Chris Ryan, senior adviser in Citibank’s securities and fund services group.

Citibank’s securities and fund services unit provides various back office and middle office servers to pension funds, hedge funds, banks, mutual funds and insurance companies. The unit is part of Citi’s global transaction services group, which reported revenue of US$1.2 billion in the first half of the year, up 8% from the year-earlier period.

Shares of Citigroup, Inc (NYSE: C) traded up 0.26% on Friday ending the week at $3.88.

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.