Citibank’s C-N Canadian unit is expanding its business in the country by hiring staff and onboarding more clients, as the U.S. lender seeks to capitalize Canada’s “once-in-a-generation opportunity” as global trade routes are redrawn.
As the Liberal government seeks to unwind Canada’s trade dependency on the U.S. as well as hike spending for defence and infrastructure projects, more Canadian companies are expanding globally while multinational corporations are looking to do more business in Canada, according to Citibank Canada’s new chief executive officer Raymond Gatcliffe.
“It’s about that realization that they have to make a strategic pivot to ensure continued and consistent growth. The diversification point is one that everybody is acknowledging,” Mr. Gatcliffe said in an interview Thursday.
Citibank Canada – a subsidiary of New York-based Citigroup Inc., the third-largest lender in the U.S. with operations in more than 180 countries – provides corporate, commercial, wealth, credit card and investment banking services for Canadian customers with a global footprint, as well as large corporations with subsidiaries in the country.
“There’s a lot of excitement around the world about Canada’s once-in-a-generation opportunity to up its game and take advantage of the opportunity that presents itself,” he said.
“Whether they are multinationals or mid-market companies, we see that level of interest across all sectors. Citi is a reflection of that, being a facilitator of the inbound and the outbound. And we are an example of that because we are hiring in Canada – we’re demonstrating that level of confidence and opportunity as well.”
Citigroup names insider Raymond Gatcliffe as CEO of its Canada operations
Mr. Gatcliffe joined the Canadian business in April after 30 years with Citibank, leading teams across Europe, the Middle East, Africa, Central America and the Caribbean.
As Citibank sees increased demand in Canada for its global financial services – including foreign exchange, payments and equities and commodities trading – Canada’s biggest banks are also attempting to increase their global reach. By comparison, Royal Bank of Canada, the country’s largest bank, operates in just 29 countries. Its acquisition of HSBC Bank Canada last year is part of its effort to extend its global financial capabilities.
Citibank is one of 16 U.S. lenders that operate in Canada. Large U.S. banks typically open shop in the country to provide businesses with services in global markets where Canada’s biggest banks do not reach.
The evolving trade and political landscape has bolstered Citibank’s Canadian business, as well as its ambitions to take market share.
The division employs more than 3,700 people, and currently has almost 170 open roles in Canada. Mr. Gatcliffe expects that level of hiring to continue throughout next year.
In recent weeks, some Canadian banks have embarked on layoffs. Bank of Nova Scotia restructured its Canadian banking business, and EQB Inc. – the parent of EQ Bank – said it will reduce its work force by 8 per cent.
Scotiabank lays off staff across Canada as it streamlines costs
Citibank has already seen steady growth in Canada in recent years. In 2022, the lender launched its Canadian commercial bank, serving mid-sized companies with sales of US$100-million to US$3-billion. Since then, revenue and clients have grown by more than 35 per cent annually. The team has tripled in size from 10 employees to 30.
Citibank’s commercial unit has 400 multinational clients and 50 Canadian customers, and it expects the growth of the business, as well as its corporate and wealth management units, to accelerate as Ottawa prepares to unveil a federal budget aimed at increasing spending on defence and resource infrastructure.
Last week, a former parliamentary budget officer said the government has room to run steeper deficits as its debt position is strong compared to other G7 nations. The comments followed concerns raised by the current fiscal watchdog that Ottawa’s pace of spending is “unsustainable.”
“Canada, relative to other G7 countries, has debt dynamics and fiscal space that, if used wisely, could unlock a lot of opportunities, and that is a differentiator for Canada,” Mr. Gatcliffe said.
“That’s an opportunity for Canada to be a bit more aggressive, providing opportunities and fiscal incentives, and making Canada really attractive as a foreign direct investment destination.”
Citibank Canada is also adding staff in its Mississauga-based solutions centre, a major operations hub where 3,000 employees in technology, risk management, internal audit and human resources help manage the banking giant’s global products and services platforms and operations.
“What we’re finding is that Canada’s talent, education, productivity output and cost base – all of those things combined are showing very well and comparing very positively with the skills base around the world,” Mr. Gatcliffe said. “That’s why we’re growing the Mississauga site. It’s because of all of those key success factors.”