Citi is to reorganise its group structure in Japan in order to accelerate Citi’s ongoing integration with Nikko and streamline the combined group’s operating platform.
Citi’s plans in Japan are being revealed in connection with Citi CEO Vikram Pandit’s ongoing review of ways to enhance operating efficiency across the organisation and increase the focus on clients.
Citi’s new group structure in Japan, which is expected to be implemented in phases over the next 18-24 months and which remains subject to receipt of approvals from relevant authorities, is intended to:
-Enable group-wide management of Citi’s securities, banking and related businesses in Japan on a unified basis from a combined holding company to be known as Nikko Citi Holdings Inc.
-Facilitate and accelerate the integration of Citi’s and Nikko’s business platforms in retail and institutional securities by combining Nikko Cordial Securities Inc. and Nikko Citigroup Limited to form a single securities company subsidiary.
-ReorganiSe Citi’s and Nikko’s operational, technology infrastructure and administrative support platforms under the direction of a single internal services company subsidiary to be known as Nikko Citi Business Services Inc.
-Ensure a solid foundation of governance, compliance, controls and risk management for Citi’s operations in Japan.
-Enhance efficiencies in balance sheet usage and capital allocation.
“Citi and Nikko both have demonstrated a long-term commitment to Japan, and we intend to grow our tremendous franchise there in order to serve clients better. The plans we are announcing today will provide us with the right foundation for growth in this important market,” says Pandit.
“We continue to be mindful of the importance of respecting Japanese business practices, customs and culture as we integrate with Nikko. By combining the many strengths of Citi and Nikko, we remain committed to providing the best products, services and advice to our clients,” adds Douglas L. Peterson, representative director and CEO of Citigroup Japan Holdings and chairman, president and CEO of Nikko Cordial Corporation.