Once again Citigroup is the winner in cash management, fighting off such rivals as Deutsche Bank, HSBC and Bank of America.
Despite a hiccup for Citigroup in 2001 when Deutsche landed this award on the back of its strong showing in Euromoney's annual cash management poll, Citi was back on top in 2002 and stays there for another year.
Recognition for its operation comes from market watchers outside Citigroup. As Morgan Stanley's banking analyst, Henry McVey, wrote in a recent report: "We have spent time reviewing Citi's transaction services division. We like what we found, and we think that the current management understands that this business can serve as an important differentiator versus traditional Wall Street firms."
Cash management and treasury is the biggest contributor to Citigroup's transaction services division, which provides a steady income to the bank. In hard times for investment banking, this income stream is very welcome.
However, Citigroup still has work to do in the US. As McVey points out: "Unlike many of the other custody and treasury businesses that we study, this one derives 70% of its business from outside of the US, essentially the exact opposite of its competition," says McVey.