Citigroup plans to bolster its investment banking teams in Japan and China with selective senior hires as it seeks to win more cross-border M&A mandates, Asia investment banking head Kaustubh Kulkarni told Reuters.
Kulkarni said the bank is pressing ahead with efforts to expand its on-the-ground presence in the region despite the Iran conflict, after finishing a multi-year global restructuring.
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He said dealmaking across Asia has held up, supported by sector fundamentals and corporate strategic priorities.
Still, some emerging markets such as Indonesia and the Philippines, which are more exposed to energy shocks, have seen softer IPO and capital markets activity, he told Reuters.
Kulkarni added that the drivers supporting deal activity in Japan, South Korea and Taiwan are less sensitive to energy-related pressures.
He became the sole head of investment banking for Asia after former co-head Jan Metzger left in March to join Standard Chartered.
In Japan, Citi intends to make targeted senior hires to address coverage gaps, including in technology, media and telecommunications, and to provide the level of seniority that Japanese clients expect, Kulkarni said.
“Japanese companies are becoming a lot more creative and open for strategic conversations,” Kulkarni said, citing governance-driven changes to corporate structures and activism as factors behind rising client interest.
Citi also wants to improve coordination between local and international teams to strengthen its position in cross-border M&A and sponsor-related work, Kulkarni said.
Citi’s global investment banking fees increased 12% year on year in the first quarter.
In China, Citi is waiting for final regulatory approval to operate its own securities unit, which would house its onshore investment banking team.
Kulkarni said hiring is already under way, with an emphasis on recruiting bankers who can cover “new-age” and “high-growth companies”, without giving details.
In Australia, Citi is considering a third senior hire to complete a planned build-out, Kulkarni said, after adding two senior bankers in healthcare and natural resources to fill sector leadership gaps.
