NAB and Citi join forces in its custody business
National Australia Bank (NAB) has partnered with Citi in its custody business, dampening rumours that NAB was due to sell the unit. Under the term of the partnership, NAB Asset Servicing will continue to act as custodian in Australia and New Zealand, whilst Citi will replace BNY Mellon as NAB's custodian in other countries. NAB is the largest custodian in the Australian market with AUD 793bn ($570bn) in assets under custody. This move is in line with Citi's ongoing plan to expand its presence in Australia.

National Australia Bank has partnered with Citi in its custody business, appointing the global banking giant as its custodian for markets outside Australia and New Zealand. After last year saying it was in talks with global banks over its custody business, NAB Asset Servicing, sparking speculation it might sell the unit, NAB on Wednesday signalled it was keeping the business and joining forces with Citi. NAB has appointed Citi as its custodian in markets outside Australia and New Zealand. Credit: Glenn Hunt The Australian Financial Review's Street Talk previously revealed NAB and Citi were in talks nutting out an alliance in the custody business. Custodian businesses provide back-office support to big investors such as superannuation funds, insurers, or government agencies, holding assets on their behalf. NAB is the largest custodian in the Australian market with $793 billion in assets under custody.

Under the partnership announced on Wednesday, NAB Asset Servicing will continue to act as custodian in Australia and New Zealand, while Citi will replace BNY Mellon as NAB's custodian in other countries. NAB's executive general manager of asset servicing, Matt Brown, said the bank remained committed to its custody business, and the deal would help it respond to clients seeking greater overseas exposure in their portfolios. "Citi's operating model and significant local presence will allow NAB Asset Servicing to provide even better solutions for our clients," Mr Brown said. For Citi, the deal comes as it targets a growing presence in funds management in Australia. "It's a great new growth opportunity for our business in Australia," Citi's head of securities services in Australia and New Zealand, Martin Carpenter, said