Citibank out to lift share in Singapore

Business Asia, March 3, 2000

Banking giant Citibank N.A. says it aims to double or triple its share of the Singapore home loans market with the launch of a new product.

The product would allow customers to pay off loans up to six years earlier and save up to S$220,000 (US$128,000) in interest, said Edwin Khoo, Citibank's indirect finance group vice-president and business director.

The bank with three branches in Singapore, currently has a 5 to 6 per cent share of the private home loan market in Singapore.

"The timing is good because property prices are not that high now," Khoo said.

Home loans represent about US$800 million to US$900 million in Citibank's portfolio in Singapore, second to car loans at some US$1.1 billion, he said.

Foreign banks have pushed to increase their presence in Singapore, especially in profitable areas such as home loan and credit card businesses as the city-state slowly opens up its financial sector.

Citibank was one of four foreign banks awarded Qualifying Full Bank status last November, allowing it to have more branches and off-site automated teller machines in Singapore.