U.S. Markets closed

UPDATE 1-Citigroup names Peter Babej as Asia Pacific chief executive - memo

* Babej is global head of Citi's financial institutions group

* Will relocate to Hong Kong from New York

* Asia Pacific is 2nd-largest region for Citi outside N. America (Adds details from memo, context on Asia Pacific business)

HONG KONG, Oct 17 (Reuters) - Citigroup Inc has named Peter Babej, the U.S. bank's global head of financial institutions group, as its new Asia Pacific chief executive officer, according to an internal memo seen by Reuters on Thursday.

Babej joined Citi in 2010 as co-head of the financial institutions group after having previously worked at Deutsche Bank and investment bank Lazard, according to the memo sent to staff by Citi global CEO Mike Corbat.

A spokesman for Citi in Hong Kong confirmed the contents of the memo.

Babej, who is currently based in New York and will relocate to Hong Kong, will replace Francisco Aristeguieta, who left Citi earlier this year to join custodian bank State Street Corp as chief executive of its international business.

Citi's business in Asia Pacific is the second largest region-wise in terms of revenue, outside of its home market of North America, and contributes around one-fifth of its revenues and nearly one-third of the bank's net income.

In the quarter ended Sept. 30, Citi's Asia Pacific revenue grew 7% to $4.01 billion.

Babej has been involved in several Asia-focused merger and acquisition transactions in the financial sector, Corbat wrote in the memo, adding the new regional head will take over the role immediately.

"He will draw on his deep knowledge of the financial services landscape in Asia, where we continue to see great opportunities, including fast-growing digital adoption," Corbat said in the memo. (Reporting by Sumeet Chatterjee and Alun John; Editing by Muralikumar Anantharaman)