Citigroup Expands Investment Banking in Japan and Australia Amid M&A Surge

Citigroup is accelerating its Asia Pacific investment banking push, planning a 10% to 15% headcount increase in Japan over the next year and additional hires in Australia. The move follows a sharp uptick in cross-border M&A activity, with Citi’s Japan investment banking fees soaring 140% year-over-year to $92 million, according to Dealogic.

Jan Metzger, Citi’s Asia Pacific head of investment banking, said the firm is “hiring and strengthening our regional investment banking team in a very meaningful way” to capitalize on growth. While exact hiring numbers weren’t disclosed, Metzger emphasized Citi’s intent to outpace market growth, particularly in Japan, where regulatory reforms and corporate governance improvements are boosting deal activity.

Citi recently advised Nippon Steel on its $14.9 billion acquisition of U.S. Steel, a deal that Metzger said triggered a wave of inbound interest from clients with complex geopolitical transactions. Japan is currently leading Asia’s M&A rebound, with a record $232 billion in deals in H1 2025, driven by take-private deals, outbound investments, and private equity.

In Australia, Citi is gaining ground against boutique firms by leveraging its “full banking offering.” The bank has strengthened its regional team with key hires, including Akira Kiyota from Nomura and Philippe Perzi from Goldman Sachs.

Citi also sees growing demand for convertible bonds. Earlier this month, it helped Alibaba raise HK$12 billion ($1.5 billion) through an exchangeable bond. Metzger noted that investors are increasingly drawn to such instruments from Chinese tech firms as a hedge against geopolitical risks.

The expansion comes as Citi reported a 13% rise in global investment banking fees in Q2, signaling broader recovery and momentum in the sector.