Citigroup Inc. plans to move its Japan headquarters from Tokyo’s Shin-Marunouchi Building to a new location nearby that will bring its brokerage and banking divisions together in the city’s financial district.
The U.S. bank is relocating to achieve “efficiency,” said Mika Nemoto, a Tokyo-based spokeswoman. Its investment-banking, trading, markets and corporate banking operations are currently split between the Marunouchi and Shinjuku districts of the capital. It plans to move them to the Otemachi Park Building, which is under construction, in the second half of next year, people familiar with the matter said.
The New York-based firm is bolstering its corporate and investment-banking businesses in Japan after withdrawing from consumer-banking and card operations last year. It has recruited at least 10 equity analysts, economists, traders and bankers in Japan since April.
Citigroup has been a tenant in the building commonly known as Shin Maru since it opened in 2007. The company has more than 1,000 employees at its brokerage and corporate bank in Japan, according to its filings. Nemoto declined to comment on the details of the relocation.
The 29-story Otemachi Park Building is being erected across the road from the Imperial Palace grounds and is scheduled for completion in January. The building will be equipped with fitness and shower rooms, along with serviced apartments and a day care center, according to the website of developer Mitsubishi Estate Co.
Profits of Citigroup Global Markets Japan Inc., the U.S. bank’s local brokerage unit, rose 12 percent to ¥8.3 billion ($81 million) in the year ended March 31. Citibank Japan Ltd., the corporate banking arm, posted a profit of ¥25.7 billion, compared with a loss of ¥4.5 billion a year earlier.
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