HONG KONG (Reuters) -Citigroup's Asia wealth revenue surged 20% in the first quarter of 2023, backed by investment gains, insurance revenue and a jump in new private banking clients, according to a company spokesperson.
The wealth market in Asia has been undergoing a shakeup as some rich clients fled Credit Suisse amid a banker exodus in the last few months, with analysts believing that rival private banks benefitted from inflows.
The number of new clients who joined Citi's Private Bank in the region have doubled in the first quarter from a year ago, with new private banking assets growing 20% year on year, according to a Citi spokesperson.
Still, globally, the bank's wealth management business was weaker, recording $1.8 billion in first quarter revenue, down 9% from the same period last year.
The U.S lender cited headwinds in securing revenue from investment products and higher interest rates paid on deposits as being the main factors for the global decline.
Meanwhile, the firm's institutional business, including banking, services and markets, recorded $2.4 billion in first quarter revenue in Asia, up 6% from a year ago.
The firm's Asia head told Reuters last August it planned to hire around 3,000 new staff for its Asia institutional business in the next few years, sharpening its focus in a fast-growing region.