By CONRAD TAN

CITIGROUP earned $1.2 billion net from its Singapore operations last year as its consumer banking unit raked in record profits, its Singapore country head said yesterday.

Overall, the net profit from Citi's main Singapore businesses - including corporate banking, investment banking and private banking - was slightly below the $1.23 billion recorded in 2007.

'Our business in Singapore continues to be robust,' said Citi's Singapore country officer Jonathan Larsen.

For 2009, 'we've seen a very good start to the year' despite the financial crisis. 'We've seen growth in the first quarter for our business overall in Singapore.'

Net profit at Citibank Singapore Ltd, Citi's locally incorporated consumer banking unit, rose 3 per cent to $703.6 million in 2008 - the most ever, Citi said.

Its net interest income - which measures how much a bank makes from lending after deducting funding costs - grew 17.2 per cent to $806.6 million.

But fee and commission income fell 23.3 per cent to $354.4 million. The decline was 'mostly due to a decrease in retail wealth management activities, especially in the second half of last year', Mr Larsen said.

At end-December, the consumer bank had outstanding customer loans of $9.6 billion, down 5.4 per cent from a year earlier. Its customer deposits also fell slightly over the year to $22.9 billion, from $23.8 billion at end-2007.

By comparison, the consumer banking units of Singapore's two biggest lenders, DBS Group and United Overseas Bank, had customer loans of $34.8 billion and $36.9 billion respectively at the end of last year.

For the first time, Citi also announced results for its next two biggest operating units here - Citibank NA Singapore Branch and Citicorp Investment Bank (Singapore) Ltd or CIBSL.

The two units are responsible for most of Citi's corporate banking, investment banking and private banking activities here.

Their combined net profit last year was $500.7 million, down 8.3 per cent from 2007. Total revenue for the two units dipped 1.8 per cent to $1.33 billion.

The consumer bank and these two units together account for some 95 per cent of Citi's revenue and profits here, Mr Larsen said.

A few other legal entities, including a subsidiary that offers trust services for private banking clients, contribute the rest. Each is licensed separately by the Monetary Authority of Singapore.

The results of the three biggest operating units will be published yearly from now on, Mr Larsen added.

Previously, Citi only disclosed the annual results of its consumer banking subsidiary. None of Citi's operating units here are publicly listed, so it is not obliged to publish details of their financial position. In total, Citi employs some 8,000 people in Singapore.

The bank will continue to expand its retail network here, Mr Larsen said. Its 21st branch is due to be launched soon at Holland Village, said Anil Wadhwani, Citi's retail banking head for Singapore.

Citi is also in talks with SMRT Corp to extend the bank's retail network to more MRT stations once the Circle Line begins operating later this year, Mr Larsen said.

Citi already has nine branches at SMRT stations and has installed cash machines and self-service terminals in most others.

The bank has also enrolled in the new government-backed loan scheme administered by Spring Singapore, aimed at helping small and medium enterprises, that was announced in the Budget on Jan 22.

'We're finalising the necessary arrangements with Spring' and the bank expects to make its first loan under the scheme soon, Mr Larsen said. 'We think it's a very attractive programme.'

This article was first published in The Business Times.