Citigroup expects acquisition to bring higher profits in Taiwan

Citigroup Inc. expects profit from its Taiwan operations to grow in 2008, following its US$427 million acquisition of the Bank of Overseas Chinese, an official said Saturday. 

Citigroup, the most profitable foreign bank in Taiwan, posted a pretax profit of NT$10.32 billion (US$320 million; euro215 million) during the three quarters ending Sept. 30, according to data on the Financial Supervisory Commission Web site. 

"Next year, we expect our profit to be even better,'' Morris Li, Citigroup's Taiwan country officer, said at a news conference in Taipei marking the acquisition's completion. He declined to give a specific figure. 

Citigroup, Standard Chartered PLC and ABN AMRO Holding NV have in the past year acquired Taiwanese lenders to expand their client bases and their wealth management business. 

Taiwan ranks as No.3 in terms of private wealth in Asia, after China and Japan, according to Boston Consulting Group, which advises private-banking services providers. 

The acquisition will increase Citigroup's bank outlets in Taiwan to 66 from 11, increase its client base by one million, and the number of employees to 5,600 from 3,500, said Li. 

Citigroup has set up a wholly-owned entity, Citibank Taiwan Ltd., to take over Bank of Overseas Chinese's rights and obligations.