Daily Times- Citigroup\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s Asian transaction services group, which booked a $588 million profit in 2006, plans to increase staff by 11 percent this year and boost revenue by targeting more hedge funds and small and medium enterprises (SMEs).<\/p>\n
The Asian business, which provides cash management, trade services and custody, trust and other services for securities firms and funds, is growing more than 20 percent annually and executives say first-quarter transaction volumes rose 34 percent.<\/p>\n
\u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cThe fastest growing segment for us by percentage growth is the SME sector – it\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s from a smaller base but we have entered into two or three new markets in the last few years,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d said Anthony Nappi, head of Asia Pacific global transaction services. Transaction services is the engine room supporting sexier businesses like hedge funds, IPO underwriting and M&A.<\/p>\n
Citigroup\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s non-Japan Asian transaction services business, which has about 5,260 staff around the region, had a net profit of $588 million last year, compared with $480 million in 2005, and accounted for 41 percent of the group\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s total global profits.<\/p>\n
Nappi noted that the business works with its investment banking, trading, prime brokerage and corporate banking units and even other financial institutions that turn to Citigroup for services it cannot do internally.<\/p>\n