Citi added six to seven investment bankers in Southeast Asia in 2011 as part of the bank's global strategy to have investment banking work more closely with other corporate units on transactions.

But despite the bleak 2012 employment outlook for many in the banking industry, there are no plans to start reducing headcount.

"The numbers will remain largely the same," Tracey Woon, Citi's Southeast Asia investment banking head, said.

Citi has over 20 Singapore-based investment bankers including recent hires like former Royal Bank of Scotland's banker David Khoo, who covers financial institutions, and Abhay Pande, who moved from New York to Singapore to head industrials in Southeast Asia..

The outlook for the industry 2012 remains challenging, as Citi expects Southeast Asia equity capital market volumes to fall to $15-$20 billion, or about 60-70 percent of the value seen in 2011. Corporate debt issuance is seen steady at around $25 to $27 billion, inclusive of Asian Development Bank issues.

"It is not a lack of liquidity. Today the issue is investors are very hesitant to put money to work," said Woon, who was named head of the newly created Southeast Asia post in April.

"When the market turns there is always a lot of money waiting for deals."

Citi ranked number two on the league table for Southeast Asia equity capital markets, advising on $1.4 billion worth of transactions from Jan 1 to Nov 23, based on Thomson Reuters data.

It is among the bookrunners for Noble Group's planned listing of its agriculture business next year and is also advising India's Fortis Group on the listing of a business trust in Singapore, sources have told Reuters. Woon declined to comment on the deals.

While the euro zone sovereign debt crisis is deterring companies from raising funds, it may prove to be a bright spot for the bank's M&A work as Asian companies eye cut-price acquisitions from struggling European companies.

"Asians would be interested in assets that the European companies have in Asia," said Woon.

"Everyone is looking at whether the Europeans have assets to offload in Asia. Those are kind of your obvious targets."

Woon said some of their Europe bankers are coming out to the region this week to talk to Asian clients about deals, although few companies feel comfortable enough to buy anything just yet.

Citi is just behind Goldman Sachs in the Southeast Asia 2011 M&A league table, a turnaround from 2010 when it was ranked 14th, according to Thomson Reuters data.

Among its deals, Citi advised Digital Telecommunications Philippines Inc, which was taken over by Philippine Long Distance Telephone Co's (PLDT) in a $1.6 billion deal.

Woon said Southeast Asia M&A market would remain active in 2012 as interest remains high in financial and resources sectors in Indonesia, while Thai corporates are on the lookout for deals outside their home markets.