Citi Australia has expanded its custody business through a client transfer agreement with the Royal Bank of Canada’s (RBC) custody business.
As a result of the transaction, Citi expects to significantly grow its market share.
Citi explained it will also bolster its Kuala Lumpur regional operations site, with a number of RBC’s Kuala Lumpur-based employees expected to join Citi, adding to its presence in Melbourne.
The expansion in Citi Australia’s custody business follows the signing a memorandum of understanding with RBC in November last year, with the intent to facilitate an orderly transfer of the RBC client base to Citi over a 12 to 24 month period.
Citi Australia’s head of securities services, Martin Carpenter, expects the majority of clients to “transition to Citi and benefit from the bank’s industry-leading platforms, proprietary custody network and excellent client servicing”.
Julie Kerr, Citi’s regional head of custody and fund services, said: “This transaction reflects Citi’s ongoing investment and commitment to the securities services business both globally and locally. Australia is a targeted growth market for Citi’s custody and fund services business.”
Andrew Allen, general manager at RBC, stated: “We are proud of the business we have established in Australia, however, after careful consideration, we have concluded that the complex and dynamic nature of the market in Australia meant it was difficult for us to grow the business to the size and scale required to deliver meaningful value for our shareholders and clients.”
“We consider that it is in the long term interest of our clients and employees to seek a transfer of our business to an organisation with a client focus and strong offering in the market,” Allen added.
