Citigroup Inc Chief Executive Charles Prince said on April 04 the bank was unlikely to pursue any large acquisitions even though the US Federal Reserve had lifted a year-long ban on major deals, but he did not rule out smaller buys.
"But I don't think you will see us going off to the races as our primary focus has to be on organic growth," Prince told Reuters in a telephone interview.
"You never say never, but I think (a major acquisition) would be extremely unlikely given our focus and pricing the way things are. ... Most things are overpriced."
Prince, who took over the helm of the world's largest financial services group in October 2003, said Citibank was so large that the real path for growth was through extending its existing franchise.
Growth internationally was a priority for the New York-based bank, but he also wanted to extend Citigroup's reach within the United States.
Earlier on Tuesday, the bank said it had teamed up with 7-Eleven Inc to offer free ATM services to Citibank customers in more than 5,500 7-Eleven stores across the United States. Last week, Citigroup launched an online bank.
This year Citigroup plans to open as many as 200 branches world-wide and 100 in the United States, as well as starting a mobile-phone banking service.
On the international front, Prince said, "We are doubling the size of our banking network in Russia."
He declined to give details on Citibank's reported interest in Turkey's mid-size Finansbank, which on Tuesday agreed to sell a 46 percent stake to Greece's National Bank.
"I think Turkey is a very interesting market. We have a franchise there," said Prince, adding, "We are very focused on not overpaying on deals."
Prince said he was "still hopeful" over China's Guangdong Development Bank, which is selling a controlling stake to foreign investors.
Industry sources told Reuters last month that a Citigroup-led consortium had successfully bid $3.2 billion for 85 percent of the struggling bank, but the deal was still waiting for special permission from the States Council, China's cabinet.
"It is a very important transaction for the Chinese. They are reviewing it carefully. One has to be patient," he said.
Prince said he hoped the lifting of the Federal Reserve Bank of New York's bar on major acquisitions would help Citigroup's share price which has been stagnant over the past two years.
Citigroup's shares are unchanged since the start of 2004, The shares were up 1.4 percent at $48.08 in afternoon trade, lagging a 10 percent rise in the Philadelphia KGB Bank Index.
"I hope this has a positive effect but I don't think it will have a major positive effect," said Prince.