Citigroup firm in NZ market

Citigroup won't be pulling out of the New Zealand market and is focusing on growth opportunities through exporters, New Zealand chief executive Mark Fitz-Gerald says.

The wholesale bank, whose American owner was bailed out to the tune of US$45 billion ($78.67 billion) by the US Government last year, has faced ongoing speculation over its presence here. That was fuelled recently by its desire to pull out of lending to New Zealand multi-national Nuplex.

Fitz-Gerald wouldn't comment on the specifics of Nuplex but said there was definitely a future for the bank in New Zealand.

"In no way are we pulling out of the New Zealand market.

"I think there is a lot of rumour and speculation out there. You get caught up a little in that a bit."

Fitz-Gerald said that in recent years the business had been in growth mode.

Its total assets grew from $3.5 billion in 2007 to $3.8 billion in 2008. Revenue was up to $73 million and the company made a profit of $36 million last year.

Since then it had made cutbacks, including the closure of its Wellington office, but Fitz-Gerald said the company still saw a niche for itself in the New Zealand market.

"Our focus is on providing cross-border facilities for top end corporates, helping those corporates access the international debt markets and helping multi-nationals with New Zealand offices to do business."

It was hoping to pick up on businesses looking to drive down their costs by using more innovative ways to structure their banking.

That could mean making one payment to Citi, which would convert it into foreign currencies to make separate payments internationally.

"That is a real sweet spot for us," he said.

Raising debt in the local market had been very successful but Fitz-Gerald said there was only so much New Zealand capital markets could provide for big end corporates.

"We are in 100 countries around the world - because of that value proposition we can service global companies."

While Fitz-Gerald expected the New Zealand asset growth to be tough this year, there was still potential to grow assets through New Zealand exporters doing business in other markets - a figure which would not show up on its New Zealand balance sheet.

He said that was a growing area because many New Zealand companies were now sending manufacturing overseas.