Weber Lo Wai-pak, chief executive and country business manager of Citibank Hong Kong, said the local unit was not as badly hit as overseas branches, though both revenue and profit dropped by single digits in the financial year ended March.

"We saw continuous growth in deposit and net money inflow during the past months, showing consumer confidence," he said.

Lo said salaries will be frozen at last year's level and there will be no job cuts. "We also need talents for business development. We cut jobs last year but there is no layoff plan so far this year."

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Lo expects Hong Kong's jobless rate and bankruptcy ratio to continue to increase in the coming months, and these may hurt bank earnings.

"The unemployment rate is still on the rise and it will be no surprise if it reaches 6 percent by the end of the second quarter."

"This will be accompanied by a rising bankruptcy rate because job losses and salary cuts remain severe. In February alone, 1,675 people filed for bankruptcy - a 120 percent increase when compared to a year ago or to January," Lo said.

He added: "Our consumer banking business may see a double-digit drop in revenue this financial calendar, ended next March, owing to a shrinking market and increasing bad loans."

But Lo said it was a global issue and not unique to Citibank. As for the first quarter this year, he said there are positive signs of maintaining growth in new clients. Citi has enjoyed a near double-digit deposit growth, indicating clients are still confident in the bank, but there is a shift from investments to savings.

"The bank this year will focus on insurance products and retirement plans, lowering reliance on investment products," Lo said.

He is optimistic the US headquarters will support the local unit's expansion.

"We have 25 branches now. We hope there would be good news by the fourth quarter."