Citigroup Private Bank Opens First Office in Mainland China

Citigroup Private Bank Opens First Office in Mainland China

March 29, 2006

Expects China to be Asia's Largest Wealth Management Market within a Decade

    SHANGHAI, China, March 29 /Xinhua-PRNewswire/ --
Citigroup opened its first Private Bank office in mainland
China today at a ceremony at Citigroup Tower attended by
Todd Thomson, Chairman & Chief Executive Officer of
Citigroup Global Wealth Management.

    (Photos:
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    The Citigroup Private Bank business model, as practised
in the United States and other markets, is centred on a
holistic approach to wealth management for both individuals
and businesses throughout the wealth creation cycle.   

    The new Shanghai Private Bank office (which will
operate as a unit of Citibank, N.A., Shanghai Branch)
underlines Citigroup's commitment to taking a leadership
position in serving the nascent Chinese wealth management
market, which Citigroup believes could be the largest
wealth management market in Asia (excluding Japan) within a
decade. 

    Citing China's entrepreneurial culture, high savings
rate and fast-paced modernisation of its banking sector,
Mr. Thomson said: "In 10 years, probably less, we may
be witnessing Asia's single largest market in terms of
investible assets among the high net worth
population." 

    "This is an investment for the future.  Building a
modern banking system has been one of the country's
priorities since the late 1980s.  We want to play an active
role in the growth and development of China's wealth
management sector," said Mr. Thomson.

    Presently, the office will offer approved foreign
currency products to Chinese and foreign residents and
approved local currency products to foreign residents. 
Over time, the product suite will be expanded, as
regulations permit.  

    Private Investment Banking

    Mr. Thomson continued: "We are excited to deliver
the global experience of Citigroup to China's entrepreneurs
and to help develop the nascent wealth management market. 
Through the Citigroup Private Bank, these entrepreneurs
will now have a window into the global opportunities,
information and relationships of the world's largest
bank."   

    "In addition to asset allocation and planning for
their local financial services needs, the Citigroup Private
Bank is uniquely positioned to offer a wide range of advice
to entrepreneurs as they build their businesses for the
future and consider capital needs.  We will share with our
clients our knowledge of global capital markets and provide
them networking opportunities with their business industry
counterparts around the world, many of whom are also our
clients.  We will also work with these entrepreneurs as
they build their wealth to ensure they protect and grow it
for future generations."

    The Citigroup Private Bank has a strong track record in
developing a business from scratch in many emerging markets
across the world.  In the Asia-Pacific region, Citigroup
has the largest footprint of the private banks, with
offices in 11 countries including China.  It manages nearly
US$60 billion in client's assets.  More than 6,000 high net
worth individuals (at least USD10 million in net worth),
including half of Asia (ex-Japan)'s billionaires, count as
clients of The Citigroup Private Bank.  

    Leveraging the Citigroup franchise in China

    It is also anticipated that The Citigroup Private Bank
will establish offices in other Citibank branches in China
with regulatory approval. 

    "The Citigroup Private Bank already has some
significant competitive advantages in China given the long
history and strong position in the country of its parent
company, Citigroup," said Richard Stanley, Citigroup's
Chief Executive Officer for China. 

    "There are many opportunities for synergies
between the private bank and our existing operations in
China, and we look forward to the private bank becoming an
integral part of the Citigroup franchise, as we continue to
expand our coverage of financial services in the China
market," Mr. Stanley said. 

    "Our immediate focus is to organically grow our
wealth management business in China through the local
office and by leveraging the network of Citigroup's
corporate and investment banking and retail banking
franchise," said Deepak Sharma, Chief Executive
Officer of Citigroup Global Wealth Management Asia-Pacific
& Middle East. 

    "In addition, our new office will provide
Citigroup an opportunity to take a leadership role in
helping to train and develop local wealth management
professionals," he said.

    Citigroup's roots in China date back to 1902 with the
establishment of a commercial banking office in Shanghai. 
Today, Citigroup's China operation serves a broad base of
customers including multinationals, joint ventures, local
enterprises and residents.  Its business by products covers
a wide spectrum of consumer, commercial and merchant banking
activities.

    Growing Wealth Market in China

    Mr Sharma added: "China is among the fastest
growing economies in the world, and its high net worth
population is expanding in tandem, demanding a more
sophisticated range of financial instruments to help them
meet their wealth management needs and goals." 

    According to one industry study, China accounted for
US$910 billion in Assets Under Management (AUM) among the
affluent (minimum US$100,000 in net worth) in 2004, of
which US$ 530 billion were held by 'millionaire households'
(with AUM of at least US$1 million). (1)

        (1) Boston Consulting Group Global Wealth Report
2005

    Another industry report estimates that there are at
least 300,000 millionaires in China. (2)

        (2) Merrill Lynch Cap Gemini World Wealth Report
2005

    Looking ahead, total AUM in China is expected to grow
to $1.73 trillion by 2009 at a CAGR of nearly 14% per
annum, ranking China as one of the fastest growing markets
in the world. (3)

        (3) Boston Consulting Group Global Wealth Report
2005

    About The Citigroup Private Bank  

    The Citigroup Private Bank, one of the largest private
banking businesses in the world, provides personalized
wealth management services for clients through 126 offices
in 90 cities in 37 countries.  The Citigroup Private Bank
offers unmatched global reach, coupled with a full range of
portfolio management and investment advisory services, an
array of structured lending and banking services, as well
as expertise from the Global Corporate and Investment Bank.
 Citigroup Private Bankers act as financial architects,
designing and coordinating insightful solutions for
individual client needs, with an emphasis on personalized,
confidential service.  The Citigroup Private Bank provides
services and products through various Citigroup affiliates.
 Not all services and products are available at all
locations. 

    About Citigroup

    Citigroup (NYSE: C), the leading global financial
services company, has some 200 million customer accounts
and does business in more than 100 countries, providing
consumers, corporations, governments and institutions with
a broad range of financial products and services, including
consumer banking and credit, corporate and investment
banking, insurance, securities brokerage, and asset
management.  Major brand names under Citigroup's trademark
red umbrella include Citibank, CitiFinancial, Primerica,
Smith Barney, and Banamex. Additional information may be
found at http://www.citigroup.com .

    Issued by The Citigroup Private Bank, a business unit
of Citibank N.A. Shanghai Branch.

    For further information, please contact: 

     MR STEPHEN R THOMAS			 
     Citigroup Corporate Affairs China 	
     Tel:   [phone]
     Fax:   [phone]					        
     Email: [e-mail]

     MR JACK SUNG 
     Corporate Communications
     Citigroup Global Wealth Management - Asia-Pacific
& Middle East
     Singapore
     Tel:   [phone]
     HP:    [phone]
     Email: [e-mail]

SOURCE  The Citigroup Private Bank