Awards for Excellence 2011: Best Global emerging markets bank
Earnings in emerging markets are the biggest contributor to the bank that is focused on where it can have meaningful impact.
Best Global emerging markets bank: Citi
Also nominated: HSBC and Standard Chartered
Citi has always claimed to be a strong emerging markets player; after all it has a presence in more countries than any other bank. But the numbers always told a different story: over 50% of its earnings came from the US and western Europe. Now that balance is changing – and what that means should not be underestimated.
In the 12 months to the end of March, 65% of Citi’s earnings before taxes came from the emerging markets, compared with 44% a year ago. Other key indicators are also becoming reliant on emerging markets. For example, over the same period 45% of managed revenues were derived from developing countries, compared with 41% the year before. The bank is also attracting more deposits from and making more loans to emerging markets. These trends will accelerate as these countries grow faster than the industrialized nations, at least for the foreseeable future. "One important benchmark is that Citi’s growth is between one-and-a-half and two times faster in the developing part of a region compared with the developed part," says John Havens, president of the bank.