Citicorp Given Preliminary Go-Ahead To Open Brokerage Operation in

Citicorp, continuing to expand its brokerage operation, said it has received preliminary approval to open a brokerage office in Istanbul.

The new office is expected to be open and staffed in the fall, pending final approval from Turkish regulators, according to a Citicorp spokesman in New York.

This expansion in Turkey, a country that has experienced economic problems recently, was characterized by Citicorp as a further push into a market that holds significant potential for profits. Of the more than 90 countries in which Citicorp operates, close to 70 are emerging markets.

Indeed, analysts said that in spite of the risks and the peculiarities of a country's banking practices, operating within emerging economies often can yield extraordinary profits. There is a sizable population to be tapped, they said, and profit margins can be higher.

"There is a whole lot of money to be made in those markets," said Charles Cranmer, an analyst with M.A. Schapiro. "The other side, of course, is that there is still a risk there. Those governments aren't necessarily interested in seeing that Citicorp makes a profit."

Citicorp, according to Mr. Cranmer, has been particularly aggressive in moving into foreign countries, including many emerging markets. The bank lowers its risk by not investing too heavily in any one country.

"That cushions all the volatility," said David S. Berry of Keefe, Bruyette & Woods Inc., who described Citicorp as a keen student of foreign economies and their financial customs. "If you can live with that, there is more growth there than in mature economies."

Compounded growth over the past five years, he said, has been about 20%.

Citicorp has been doing commercial banking in Turkey for 20 years, and has offices in Istanbul and Ankara.

"They are one of the few U.S. banks that are really committed to having those kinds of international operations," said Mr. Cranmer. "They want that standing. It's working well for them."

The brokerage operation, called Citicorp Menkul, will be allowed to broker securities trades, manage public offerings as well as portfolios, and perform investment consulting. The brokerage will trade on the Istanbul Stock Exchange, but will also be allowed to trade outside it.

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