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Citigroup may sell its Australian retail broking unit as it consolidates its wealth management business in Hong Kong and Singapore to compete for customers against bigger private bank rivals.
The US financial group is understood to be in talks over the possible sale of Citi Smith Barney Australia to National Australia Bank.
It also plans to close its CSB branch in Taiwan and merge others in Singapore and Hong Kong with Citi Private Bank.
Talks between Citigroup and NAB have taken place as a number of other parties have expressed interest in the broking unit, which generated annual revenue of about A$120m (US$110m) and accounts for less than a tenth of Citigroup's Australian business, said a person close to the situation.
Citigroup declined to comment and NAB was unavailable for comment.
NAB's interest in CSB Australia is being led by Ahmed Fahour, a former Citigroup executive who is one of NAB's most senior managers. NAB's purchase of the local CSB operations would provide an entry back into stockbroking for Australia's top lender after it closed its private client business 17 years ago.
Citigroup said the merger of CSB into Citi Private Bank in Hong Kong and Singapore would not affect operations in Australia and India.
Meanwhile, the closure of the Taiwan CSB reflects a decision to "better deploy our resources elsewhere", according to Citigroup. The bank said it would seek to transfer the 50 staff from Smith Barney to other Citi businesses on the island.
Citigroup has expanded its operations in Taiwan, Asia's third-largest wealth management market, by buying local Bank of Overseas Chinese, which will provide private client services.
Singapore and Hong Kong are seen as Asia's main private banking hubs. Citigroup must compete against bigger private banking operations by UBS and Credit Suisse, among others.
Separately, Australia's Macquarie Group said yesterday that it would open an office in Singapore in an expansion of its wealth management business.
The Asian operations will be headed by Joseph Poon, the former head of the private banking unit for south Asia at JPMorgan Chase.
Macquarie, which now only offers private banking services in Australia, predicted that Singapore would become one of the world's biggest global private banking centres along with Switzerland.
Additional reporting by Kathrin Hille in Taipei
