Smith Barney Planning Rogers Digs, More Pros

Smith Barney, a financial services firm owned by Citigroup Global Markets Inc., plans to open a 5,500-SF office in Rogers’ Pinnacle Hills area in the first quarter of 2005 and move most of its Fayetteville staff to that location. The space is about twice the size of the office Smith Barney now occupies at 3810 Front St. in Fayetteville.

With the new office, the company will hire at least three new registered financial advisers, said Russell Kelley, vice president of investments and resident manager of Smith Barney’s Fayetteville office, which opened in August 2003.

But, depending on the talent available, Kelley said he could be hiring considerably more. By this time next year, he hopes to have at least 16 registered pros on his staff, possibly in several different offices throughout Northwest Arkansas. That’s twice as many has he has now in the Fayetteville office.

“We are aggressively recruiting highly qualified professionals,” Kelley said. “Our business is one where you don’t just hire people off the street.”

Although the exact location has yet to be announced, Kelley said the Rogers location will have 11 private offices for 11 financial advisers.

Kelley will keep an office in Fayetteville, and it will be staffed by at least one professional, but Smith Barney may leave the temporary space it now occupies in Fayetteville.

A Springdale office may be added before the end of 2005. Kelley said having offices in different cities will help Smith Barney serve the area’s diverse clientele.

“We truly believe that these markets are segmented to be very very different,” he said of area cities. “You’ve got to go to where the client is, and you’ve got to be available … I would say we will have multiple locations in Northwest Arkansas.”

Kelley said Smith Barney is focusing on Benton and Washington counties because of growth in the area. The Northwest Arkansas operation is associated with Smith Barney’s Tulsa office, which has more than 60 professionals on staff.

Although Smith Barney offers banking products, about 90 percent of its business in Northwest Arkansas is brokerage related, Kelley said.

Smith Barney is the private client group segment of Citigroup Global Markets Inc. of New York. Smith Barney provides brokerage, investment banking and asset management services to corporations, governments and individuals.

Citigroup had $77.4 billion in net revenue for fiscal 2003, a 9 percent increase over $71.3 billion the previous year. Citigroup’s net income was $17.9 billion in fiscal 2003, up 17 percent from $15.3 billion the previous year. Citigroup’s assets increased from $1.1 trillion to $1.3 trillion in 2003. Return on common equity increased from 18.6 to 19.8 percent in 2003.

Smith Barney had $778 million in net income for 2003, down three percent from $799 million the previous year. According to Citigroup’s 2003 annual report, Smith Barney led the industry with the highest reported quarterly profit margin — 25 percent in the fourth quarter (22 percent for the entire year). Revenue per financial consultant reached $508,000 in the fourth quarter.