Citibank upbeat on insurance fee income growth

Citibank said its first-quarter new premium income from yuan- denominated insurance products sold in Hong Kong more than doubled from the previous quarter and was up 30 per cent on the same quarter a year ago.

Emily Cheung Chi-ting, the head of insurance at Citibank Hong Kong, said she expected this year's fee income from insurance sales to be higher than last year because investment markets were in better shape.

The bank also planned to launch several new products.

The Hong Kong Monetary Authority has, meanwhile, extended further regulatory controls over bank sales of investment-linked products. The new regulations require banks to disclose sales commissions, and their customers to state their reasons for buying the products.

Banks must implement the new measures by the end of next month.

Cheung said Citibank was in discussions with the authority on the changes, but she expected their impact to be minimal at Citibank because its current guidelines were similar to the new requirements.