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Straits Times
6 days ago
- Business
- Straits Times
Citi: Global bank, anchored in Singapore
AS SINGAPORE celebrates its 60th year of independence, Citi continues to play a vital role in the city-state's remarkable journey as a global financial centre. With a presence dating back to 1902, Citi has grown alongside Singapore, innovating and investing to support the evolving needs of its people, businesses, and communities. In this SG60 special, Tibor Pandi, Citi Country Officer and Banking Head for Singapore discusses how the bank brings its mission to life: to enable growth and economic progress for clients and communities while it continues to invest in Singapore's economy. Citi's presence in Singapore started in 1902. How has the bank contributed to Singapore's transformation into a world-class financial centre? In the early 20th century, Singapore witnessed the expansion of the American canning industry and the increased demand for rubber by the automobile industry. As the first American bank to establish a branch in Singapore, Citi was able to leverage its trade finance expertise to serve the growing demand for rubber and tin from Malaya, especially as global demand for these commodities surged in the mid-20th century. Following Singapore's independence in 1965, clients' demands evolved alongside the nation's rapid industrialisation and globalisation, and Citi adapted accordingly. We expanded our services beyond trade finance to support the burgeoning manufacturing sector and the increasingly complex financial needs of a growing economy. For instance, Citi played a key role in the development of Singapore's Asiadollar market, becoming the second bank licensed for offshore trading in 1969. We didn't stop there. In the 1980s, we were the first to introduce e-banking for corporations and priority banking services for retail customers. We continued to innovate and invest in solutions that our clients needed – from launching the first 24/7 Smart Banking ATM (Citibank Express) to building our CitiDirect transaction banking platform, contributing to Singapore's unstoppable growth as a financial centre. As the first foreign bank to be locally incorporated in Singapore in 2003, how did that shape the development of consumer banking and financial services in the country? When we incorporated Citibank Singapore Limited in 2003, this was the first time a foreign bank was able to compete on equal footing with the local banks in the consumer market. This enabled us to play an even bigger role in serving the citizens and residents of Singapore. From there, we grew rapidly, expanded our footprint and are recognised as one of the Domestic Systemically Important Banks in Singapore. Top stories Swipe. Select. Stay informed. 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It is one of Citi's four wealth centres globally and offers the full spectrum of Citi's capabilities – Banking, Markets, Services and Wealth. With Singapore emerging as a preferred location for companies to set up regional treasury centres, the country has naturally become Citi's regional liquidity centre, where we provide comprehensive solutions to corporate clients. Within the Markets business, our futures, derivatives and clearing businesses are based here to offer the full product suite in onshore and offshore FX, equities, bonds and futures. How is Citi building the next generation of local financial leaders and supporting Singapore's ambitions as a financial talent hub? Citi is committed to developing talent with an emphasis on meritocracy and giving opportunities to local talent anywhere we operate in the world. Many Citi alumni have gone on to become leaders in the financial sector. In fact, Citi is often known as the 'university of banking'. We have consistently supported industry efforts to develop leaders for the financial sector. We also collaborate with tertiary institutions to enhance the job readiness of undergraduates and to develop new talent for the financial sector. One example is our partnership with NUS Business School to introduce a transaction banking course in 2013 focused on the evolving transaction banking landscape and the impact of emerging technologies on payments and liquidity. This is in combination with internal initiatives such as a Singapore Core Council that I personally lead to ensure we continually develop a strong local talent core. As Singapore continues to attract global talent, we provide platforms for colleagues to gain international experience through programmes and overseas assignments. We currently have more than 160 Singaporeans working in other Citi offices around the world. Citi has invested significantly in financial literacy and social impact in Singapore. How does your work in the community reflect Citi's mission? One of the ways we are bringing our mission of enabling growth and economic progress to life is by supporting the low-income and underserved communities around us through the Citi Foundation. Since 2014, the Citi Foundation has invested over US$12 million in philanthropic initiatives impacting Singapore, including those that provide greater access to financial products, services and capital for the community. Citi was one of the first financial institutions to introduce financial education to young people, starting with the Singapore Stock Challenge in 2003, which taught secondary school students the basics of investment and trading. Volunteerism is another important way that Citi supports local communities. Through Global Community Day, Citi's annual volunteer initiative, our volunteers have completed over 1.2 million engagements globally over the last two decades. This year, volunteer activities in Singapore included deep cleaning houses for seniors, delivering packed meals, and supporting para-sports. Citi's Global Community Day, with Tibor Pandi, Singapore Citi Country Officer and Banking Head (second from right), in 2024. Year-round, we continue to partner closely with community organisations like United Women Singapore through skill-based volunteering to equip young women with skills to enter the FinTech industry. Another initiative, Youth Co:Lab, co-created by Citi Foundation and the United Nations Development Programme, has supported 360 youth-led initiatives and empowered over 3,000 youth in Singapore since 2019. How is Citi future-proofing its Singapore operations to stay relevant and resilient for the next 60 years? With the world becoming increasingly complex, our vast global network and on-the-ground expertise in over 90 markets help us connect the dots, anticipate changes and meet the needs of our clients. It allows us to adapt nimbly to trends that are transforming the financial sector – a few of which are digital innovation, wealth creation and AI. Firstly, on digital innovation, Citi has developed digital asset solutions in response to the increase in demand for 24/7 availability and frictionless instant transactions. For example, Citi Token Services for Cash facilitates 24/7, always-on cross-border liquidity and payments for corporate clients. This solution went live in 2024 and was first piloted globally between Singapore and New York. Secondly, on wealth creation, we are expecting over US$100 trillion in new wealth to be created in the next decade – with a significant portion coming from Asia. This is why Singapore remains a strategic market for Citi Wealth and one of our four wealth hubs globally. We have successfully pivoted away from transactional branches to a wealth hub model backed by an innovative mobile banking platform, elevating the client experience by allowing them to perform transactions anytime, anywhere, with the assurance of in-person services for more complex wealth needs. Lastly, on our talent and operations, Citi's goal is to build an AI-ready workforce of the future by upskilling colleagues. We introduced three Generative AI tools – productivity, desktop assistant, and automation – to approximately 150,000 colleagues across markets including Singapore, to help them make faster decisions, increase productivity while maintaining appropriate risk governance. Citi's history in Singapore 1902: 1st American bank to be established in Singapore 1982: Started Consumer Bank business in Singapore 1999: Citibank N.A. Singapore Branch obtains Qualifying Full Bank licence 2003: Citibank Singapore Limited (CSL) incorporated locally 2005: CSL operates under a full banking license 2009: Opening of Citi office at Changi Business Park 2011: Established two innovation labs in Singapore 2015: Identified as a designated Domestic Systemically Important Bank 2020: Opening of Citi's largest Wealth Hub globally in Singapore 2022: Celebrated 120th anniversary 2024: Opening of Citi's two satellite Wealth Centres
Yahoo
02-06-2025
- Business
- Yahoo
High-yielding bonds in EM may beat peers as treasuries decline
Debt from India, Indonesia, Brazil and South Africa has outperformed EM peers since April 2, when US President Donald Trump shocked global markets with his tariffs. Riskier emerging-market bonds may continue to beat their lower-yielding peers as the dollar's slide softens a rise in Treasury yields, protecting investor returns, according to analysis by Bloomberg. Debt from India, Indonesia, Brazil and South Africa has outperformed EM peers since April 2, when US President Donald Trump shocked global markets with his tariffs. The dollar rose in the four previous instances since 2021 when 10-year emerging-market bonds reacted to a rise in US benchmark yields. This time, however, the dollar has fallen, allowing currency returns to compensate for the duration spillover impact from higher US yields. 'Spillovers from rising US back-end rates to EM rates might be lower this time around' due to the effect of the weakening greenback, Goldman Sachs Group Inc. strategists including Kamakshya Trivedi and Danny Suwanapruti wrote in a recent note. Higher-yielding EM bonds will tend to benefit more from this environment, they added. Dollar-funded investments into yielder EM bonds tend to be unhedged due to the high cost of implementing protection relative to their lower-yielding peers, and see larger FX gains when the dollar falls. The ratio of yield moves this quarter versus the historical average for India was minus 0.88, versus Indonesia, Brazil and South Africa at -0.57, -0.55 and -0.50 respectively. This means that India's yields in the most recent scenario have declined the most relative to its historical mean. Peers which offer lower yields, such as the Czech Republic and South Korea, tend to be more affected by the surge in US yields due to the tighter spreads. 'EM local markets have been a beneficiary of the weaker US dollar this year,' said Anders Faergemann, head of global sovereigns and economics at PineBridge Investments. 'A continuation of that trend would help to cushion local bond performance.' Start End Indonesia India Malaysia Thailand S. Korea S. Africa Poland Czech Mexico Brazil Chile Aug-3-2021 May-6-2022 0.65 0.91 1.34 1.66 1.54 1.15 5.13 2.89 2.16 3.13 0.77 Aug-1-2022 Oct-4-2022 0.09 0.09 0.54 0.55 0.79 0.23 1.45 1.01 1.10 (1.08) 0.92 July-19-2023 Oct-19-2023 0.64 0.34 0.30 0.78 0.77 0.87 0.48 0.67 1.24 1.21 1.14 Sept-16-2024 Jan-6-2025 0.41 0.00 0.07 (0.23) (0.11) 0.15 0.67 0.46 1.04 2.40 0.35 April-2-2025 May-21-2025 (0.25) (0.30) (0.18) (0.07) (0.02) (0.30) (0.19) 0.03 0.27 (0.78) (0.05) Ratio (0.57) (0.88) (0.32) (0.10) (0.03) (0.50) (0.10) 0.02 (0.20) (0.55) (0.07) See Also: Click here to stay updated with the Latest Business & Investment News in Singapore Alphabet leads US high-grade issuance rush DBS remains overweight US amid 'complex' and 'nuanced' landscape Constructive Asiadollar and Singdollar credit markets in 2024 Read more stories about where the money flows, and analysis of the biggest market stories from Singapore and around the World Get in-depth insights from our expert contributors, and dive into financial and economic trends Follow the market issue situation with our daily updates Or want more Lifestyle and Passion stories? Click here
