“Turkey is part of our global strategy”

Chuck Prince is the CEO of Citigroup, one of the leading financial institutions in the world. He is responsible for the management of a $89.6 billion company. Prince believes that Turkey is making steady progress. He says that the partnership Citibank has with Akbank will be beneficial to Turkey. “Our increasing presence in Turkey is proof of our belief in the Turkish economy and the country’s future.”

This year the name of Citibank Turkey has been in the news a lot because of its acquisition for £3.1 billion of a 20 percent stake in Akbank, which is one of the most powerful players in the Turkish financial sector. Citibank Global President Chuck Prince says that the agreement with Akbank means more than just a partnership. “What made this merger attractive for us was our strategic partnership with Akbank,” says Prince and notes that the agreement has increased their international distribution capacity. At the same time it has improved access to the global standard products and services they offer to individuals and corporations.

We spoke with Chuck Prince, the CEO of Citigroup, which is one of the largest banks in the world, about Citigroup’s international growth plans, what he thinks about Turkey and the reasons behind their strategic cooperation with Akbank.

* What is the importance of developing markets such as Turkey in Citibank’s global business structure? How you see Turkey and its region?
As Citi we have complete confidence in Turkey. We see Turkey as a priority country and we believe that the market has a high growth potential. Turkey is currently one of the fastest growing economies in the world. Our increasing presence in Turkey is proof of our belief in the Turkish economy and the country’s future.

We have recently focused on growth in the international arena. We are investing in markets like Turkey which have a high growth potential. This model will make us better able to respond to the needs of our growing global customer portfolio.

Most of our acquisitions during the third and fourth quarters of 2006 and the first months of 2007 were in international and developing markets. As examples, we can cite the strategic partnership we have formed in Turkey with Akbank, our strategic investment in Guangdong Development Bank in China and our acquisition of Grupo Financiero Uno and Grupo Cuscatlani in South America.

* In recent years, Citigroup has never bought a minority stake or completed an acquisition or formed a partnership which it did not control. Should we regard the merger with Akbank as an indication of a change in strategy?
At Citigroup we have a strategy of forming partnerships in which we have a minority share. In some regions were prefer to work with a strong local partner. For this reason, in Turkey we chose Akbank as our strategic partner.