Citibank yesterday announced it had completed the incorporation of its consumer banking business and would launch a key expansion drive in the city. It also scotched rumours it planned a Hong Kong listing.
Citibank (Hong Kong) is now a financial institution, eligible for the benefits of the closer economic partnership arrangement (Cepa) which allows for faster branch network expansion on the mainland among other benefits.
'Incorporation is a strategic move to show Citibank's long-term commitment to Hong Kong after we have operated here for 103 years,' said Atul Malik, Citibank country business manager for consumer businesses.
'Operating as a local bank puts us in a stronger position to capture business opportunities in future,' he said.
At present, Citibank's mainland branches are operated by the global group and not by the Hong Kong branch, limiting the immediate benefits incorporation can bring under Cepa.
'Citibank is not eyeing any short-term gain from Cepa,' said Mr Malik. 'We have a long-term commitment to Hong Kong and our eye is on the long-term benefits from Cepa.'