Citibank Set to Compete in Swiss Investment Banking Market

UBS's rescue of Credit Suisse is reshaping the Swiss investment banking landscape, with Citibank poised to fiercely compete for cross-border deals in the coming year.

UBS's rescue of Credit Suisse is set to recalibrate the Swiss investment banking market, with Citibank gearing up to fiercely compete for cross-border deals. This year has seen a downturn in takeovers, IPOs, and capital increase transactions, but Citigroup's Swiss subsidiary is optimistic about the prospects for improvement in the coming year. Both the underlying economic conditions and better overall market visibility are expected to contribute to this positive outlook.

The recalibration of the market is anticipated to create opportunities for competitors, whether domestic or international, depending on the nature of their business. Citi is confident in its ability to excel in international cross-border deals, positioning itself for success in the evolving landscape. At a media roundtable in Zurich, it was revealed that there has been a 23 percent decline in global investment banking activity this year. However, the stage is now set for a recovery in 2024.

Citi's managers have observed a growing trend of companies undergoing strategic transformations in response to the current environment. This is expected to lead to new structures, with certain areas likely to be disposed of or sold. Many companies are also expected to review their outstanding debt, with refinancing needs and costs playing a significant role in their decision-making. In response to these developments, Citi intends to place a greater focus on its corporate banking activities, particularly in convertible bond issuance. Additionally, investments and takeovers, particularly in the US, are expected to become increasingly attractive avenues for companies seeking growth.

The Swiss investment banking market is undergoing a period of recalibration, presenting both challenges and opportunities for players in the industry. Citibank remains optimistic about its prospects, particularly in the realm of international cross-border deals, as it prepares to navigate the evolving landscape and capitalize on emerging opportunities.