Citigroup Inc. (branded Citi) (NYSE: C, TYO: 8710) is an American multinational financial services company based in New York City. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate Travelers Group on April 7, 1998.[2]
Citigroup Inc. has the world's largest financial services network, spanning 140 countries with approximately 16,000 offices worldwide. The company employs approximately 260,000 staff around the world, and holds over 200 million customer accounts in more than 140 countries. It is a primary dealer in US Treasury securities.[3]
Citigroup suffered huge losses during the global financial crisis of 2008 and was rescued in November 2008 in a massive bailout by the U.S. government.[4] Its largest shareholders include funds from the Middle East and Singapore.[5] On February 27, 2009, Citigroup announced that the United States government would take a 36% equity stake in the company by converting $25 billion in emergency aid into common shares; the stake was reduced to 27% after Citigroup sold $21 billion of common shares and equity in the largest single share sale in US history, surpassing Bank of America's $19 billion share sale one month prior.
Citigroup is one of the Big Four banks in the United States, along with Bank of America, JP Morgan Chase and Wells Fargo.
Citigroup Inc. (Citigroup), incorporated in 1988, is global a diversified financial services holding company. Citigroup businesses provide consumers, corporations, governments and institutions with a range of financial products and services. As of December 31, 2010, the Company had approximately 200 million customer accounts and conducted business in more than 160 countries and jurisdictions. Citigroup operates two primary business segments: Citicorp, consisting of its Regional Consumer Banking (RCB) businesses and Institutional Clients Group (ICG), and Citi Holdings, consisting of its Brokerage and Asset Management (BAM), Local Consumer Lending (LCL) businesses and a Special Asset Pool (SAP). On February 1, 2011, Citigroup acquired Maltby Acquisitions Limited (Maltby).
Citicorp
Citicorp is the Company’s global bank for consumers and businesses and represents its core franchise. Citicorp operates in approximately 100 countries, and offers services in over 160 countries and jurisdictions. As of December 31, 2010, Citicorp had approximately $1.3 trillion of assets and $760 billion of deposits, representing approximately 67% of Citi’s total assets and approximately 90% of its deposits. Citicorp consists of two businesses: RCB, which includes retail banking and Citi-branded cards in four regions: North America, Europe, Middle East and Africa (EMEA), Latin America and Asia, and ICG, which includes Securities, and Banking and Transaction Services.
RCB consists of Citigroup’s four RCB businesses that provide traditional banking services to retail customers. RCB also contains Citigroup’s branded cards business and its local commercial banking business. RCB is a globally diversified business with over 4,200 branches in 39 countries worldwide. During the year ended December 31, 2010, 54% of total RCB revenues were from outside North America. In addition, international revenues and loans were from emerging economies in Asia, Latin America, Central and Eastern Europe and the Middle East. As of December 31, 2010, RCB had $330 billion of assets and $309 billion of deposits.
Citi Holdings
BAM, which constituted approximately 8% of Citi Holdings by assets, as of December 31, 2010, consists of the Company’s global retail brokerage and asset management businesses. LCL, which constituted approximately 70% of Citi Holdings by assets, as of December 31, 2010, includes a portion of Citigroup’s North American mortgage business, retail partner cards, Western European cards and retail banking, CitiFinancial North America and other local Consumer finance businesses globally. SAP, which constituted approximately 22% of Citi Holdings by assets. At December 31, 2010, BAM had approximately $27 billion of assets, primarily consisting of Citi’s investment in, and assets related to, the MSSB JV.
Local Consumer Lending
Local Consumer Lending (LCL), which accounted approximately 70% of Citi Holdings by assets as of December 31, 2010, includes a portion of Citigroup’s North American mortgage business, retail partner cards, Western European cards and retail banking, CitiFinancial North America and other local Consumer finance businesses globally. During 2010, the Student Loan Corporation is reported as discontinued operations within the corporate/other segment. As of December 31, 2010, LCL had $252 billion of assets ($226 billion in North America). Approximately $129 billion of assets in LCL as of December 31, 2010 consisted of United States mortgages in the Company’s CitiMortgage and CitiFinancial operations. The North American assets consist of residential mortgage loans (first and second mortgages), retail partner card loans, personal loans, commercial real estate (CRE), and other consumer loans and assets.
Institutional Clients Group
Institutional Clients Group (ICG) includes Securities and Banking and Transaction Services. ICG provides corporate, institutional, public sector and high-net-worth clients with a range of products and services, including cash management, trade finance and services, securities services, trading, underwriting, lending and advisory services, around the world. ICG’s international presence is supported by trading floors in approximately 75 countries and a proprietary network within Transaction Services in over 95 countries. As of December 31, 2010, ICG had $953 billion of assets and $451 billion of deposits.
Securities and Banking
Securities and Banking (S&B) offers a array of investment and commercial banking services and products for corporations, governments, institutional and retail investors, and high-net-worth individuals. S&B includes investment banking and advisory services, lending, debt and equity sales and trading, institutional brokerage, foreign exchange, structured products, cash instruments and related derivatives, and private banking. S&B revenue is generated primarily from fees for investment banking and advisory services, fees and interest on loans, fees and spread on foreign exchange, structured products, cash instruments and related derivatives, income earned on principal transactions, and fees and spreads on private banking services.
Transaction Services
Transaction Services consists of Treasury and Trade Solutions (TTS) and Securities and Fund Services (SFS). TTS provides cash management and trade finance and services for corporations, financial institutions and public sector entities worldwide. SFS provides securities services to investors, such as global asset managers, custody and clearing services to intermediaries, such as broker-dealers, and depository and agency/trust services to multinational corporations and governments globally. Revenue is generated from net interest revenue on deposits in TTS and SFS, as well as from trade loans and fees for transaction processing and fees on assets under custody and administration in SFS.
The purchase of Golden State was funded in part from the spinoff of Travelers Property Casualty, a business that was considered more volatile and expected to grow more slowly than other Citigroup operations. In March 2002, 23.1 percent of the equity in the Travelers unit was sold to the public through an initial public offering (IPO) that raised more than $12 billion. Most of Citibank's remaining stake was distributed to shareholders in August of that year. Additional 2002 initiatives included the reorganization of the company's operations into a matrix-like structure encompassing nine product areas and six geographic regions; the start-up of retail banking operations in both China and Russia; and the formation of an alliance with Shanghai Pudong Development Bank to enter the emerging credit card market in China.
For Citigroup, however, the year 2002 is likely to be best remembered as the year of scandal. In addition to the Associates' deceptive marketing scandal, a number of state and federal investigations were launched into the questionable practices of the Salomon Smith Barney investment bank and equity research unit. Salomon's influential telecommunications analyst, Jack Grubman, was accused of hyping the stock of several firms whose shares later tanked, the firms having returned the favor by sending hundreds of millions of dollars in investment banking fees Salomon's way. Grubman resigned in disgrace in August 2002, but not before accepting a $33 million severance package. Weill himself was caught up in the scandal, when allegations were raised that he had tried to persuade Grubman to raise his rating on the stock of AT&T Corp., a firm for which Weill served as a director. In April 2003 Citigroup's Salomon (which by this time had dropped its scandal-associated name in favor of Citigroup Global Markets, Inc.) was part of a landmark $1.4 billion settlement between ten Wall Street firms and the New York Attorney General, the Securities and Exchange Commission (SEC), and other regulatory agencies. Citigroup agreed to pay $400 million in fines and payments--the largest amount paid by one firm. Grubman was fined $15 million and was barred from working in the securities industry for the rest of his life. Weill (along with other senior officers) was barred from speaking directly with Citigroup analysts on investment banking matters. The SEC also mandated the separation of investment banking and equity research operations--the building of a so-called Chinese wall--a move that Citigroup had already taken in creating a new and independent business unit called Smith Barney to be the corporation's retail brokerage house and equity research unit.
Citigroup also was embroiled in the huge Enron Corporation scandal. Both Citigroup and J.P. Morgan Chase & Co. were key Enron bankers and were involved in funding off-the-books ventures that played a central role in the alleged fraud that Enron executives had committed against the company's shareholders. The banks loaned billions of dollars to the Houston energy trading firm but structured the loans in such a way that the added debt was hidden from shareholders and in fact appeared to boost Enron's cash flow. In July 2003 Citigroup and J.P. Morgan reached an agreement with the SEC and others whereby they would pay a total of $305 million to settle the Enron case, with Citigroup's share being $145.5 million.
Despite these settlements, Citigroup still faced private and class-action lawsuits that had been filed on behalf of investors, bondholders, and others in relation to these scandals. In anticipation of the expected fines and anticipated settlement costs, the corporation had set aside $1.5 billion as a litigation reserve in December 2002. Remarkably, Citigroup still managed to report record net income of $15.28 billion for the year. On the other hand, the scandals battered the corporation's stock, which fell about 25 percent for the year--a loss in market value of about $60 billion.
Although Citigroup's reputation had certainly been tarnished by the firm's involvement in the wave of corporate scandals that rocked the United States in the early 2000s, Weill tried to win the public relations battle by adopting reform measures ahead of the regulators and legislators. For example, Citigroup announced that at the beginning of 2003 it would begin expensing the cost of all stock options for employees, management, and board members, a move that many observers believed was necessary to provide a more accurate accounting of the finances of a company. In July 2003 Weill made headlines through a long-anticipated announcement: the tapping of a successor. Weill said that he would step down as CEO at the end of 2003, and Charles O. Prince was named to succeed him. Prince was a longtime Weill lieutenant who had been named COO in 2001 and later was placed in charge of the scandal-ridden investment bank. It also was announced that the head of the Citigroup consumer banking operation, Robert B. Willumstad, would succeed Prince as COO. Weill planned to stay on as chairman through early 2006. Meantime, two other July 2003 announcements signaled that Citigroup had weathered the scandal storm: the firm said that it would increase its dividend by 75 percent and that it would acquire the huge credit card business of Sears, Roebuck and Co. for about $3 billion.
Principal Subsidiaries: Citibank, N.A.; CitiFinancial; Citigroup Global Markets, Inc.; The Citigroup Private Bank; Primerica Financial Services, Inc.; The Travelers Life and Annuity Company; Grupo Financiero Banamex, S.A. de C.V. (Mexico).
Principal Operating Units: Global Consumer Group; Global Corporate and Investment Bank Group; Global Investment Management; Global Markets; Citigroup International.
Principal Competitors: J.P. Morgan Chase & Co.; Bank of America Corporation; Deutsche Bank AG; UBS AG; Merrill Lynch & Co., Inc.; The Goldman Sachs Group, Inc.; Credit Suisse Group.
OVERALL
Beta: 2.56
Market Cap (Mil.): $130,742.40
Shares Outstanding (Mil.): 29,118.58
Annual Dividend: --
Yield (%): --
FINANCIALS
C.N Industry Sector
P/E (TTM): 14.42 14.40 26.21
EPS (TTM): 292.74 -- --
ROI: -- 0.00 4.63
ROE: 5.77 3.25 9.08
Statistics:
Public Company
Incorporated: 1812 as the City Bank of New York
Employees: 255,000
Total Assets: $1.09 trillion (2002)
Stock Exchanges: New York Pacific Mexican
Ticker Symbol: C
NAIC: 522110 Commercial Banking; 522210 Credit Card Issuing; 522291 Consumer Lending; 522220 Sales Financing; 522320 Financial Transactions Processing, Reserve, and Clearing House Activities; 523110 Investment Banking and Securities Dealing; 523120 Securities Brokerage; 523991 Trust, Fiduciary, and Custody Activities; 524113 Direct Life Insurance Carriers; 525910 Open-End Investment Funds; 523920 Portfolio Management; 551111 Offices of Bank Holding Companies
Key Dates:
1812: Colonel Samuel Osgood takes over the New York branch of First Bank of the United States and reorganizes it as City Bank of New York.
1865: The bank converts to a national charter, adopting the name National City Bank of New York (NCB).
1897: NCB becomes the first major U.S. bank to open a foreign department.
1918: Foreign operations are enlarged through the purchase of International Banking Corporation.
1919: NCB is the first U.S. bank to reach $1 billion in assets.
1933: Passage of the Glass-Steagall Act forces NCB to divest its securities affiliate and greatly reduce its financial services offerings.
1955: NCB acquires the First National Bank of New York and changes its name to First National City Bank of New York.
1961: The bank invents a new product: the negotiable certificate of deposit (CD).
1962: The name of the bank is shortened to First National City Bank.
1965: The bank enters the credit card business.
1968: A one-bank holding company, First National City Corporation (FNCC), is created and becomes the parent of the bank.
1974: The name of the holding company is changed to Citicorp.
1976: First National City Bank is renamed Citibank, N.A.
1987: Citicorp sets aside a $3 billion reserve fund as a provision against potentially bad Third World loans and also posts a $1.2 billion loss for the year.
1991: Restructuring and other charges result in an $885 million loss for the third quarter, and company shareholders do not receive a quarterly dividend for the first time since 1813.
1998: Citicorp merges with financial services giant Travelers Group Inc. to form Citigroup Inc.
1999: Passage of the Financial Services Modernization Act, which does away with the regulation of Glass-Steagall, blesses the marriage of Citicorp and Travelers after the fact, meaning the firm can engage in both banking and insurance.
2000: Associates First Capital Corporation, a consumer finance company specializing in subprime loans, is acquired and merged into CitiFinancial.
2001: Citigroup acquires Grupo Financiero Banamex, a leading retail bank in Mexico.
2002: Citigroup spins off Travelers Property Casualty; the company becomes embroiled in scandals involving its equity research and investment banking operations as well as loans to Enron Corporation.
2003: The corporation agrees to pay $400 million to settle the equity research charges and $145.5 million to settle the Enron case.
Name Age Since Current Position
Parsons, Richard 62 2009 Independent Chairman of the Board
Pandit, Vikram 54 2007 Chief Executive Officer, Director
Havens, John 54 2011 President, Chief Operating Officer, CEO - Institutional Clients Group
Kaden, Lewis 68 2010 Vice Chairman, Chairman - Public Sector Group and Institutional Clients Group
Kelly, Edward 57 2011 Vice Chairman, Chairman - Institutional Clients Group
Gerspach, John 57 2009 Chief Financial Officer
Grundhofer, Jerry 66 2009 Independent Director; Chairman Emeritus, U.S. Bancorp
Medina-Mora, Manuel 60 2010 CEO - Consumer Banking, Americas, Chmn - Global Consumer Council, Chmn & CEO, Latin America & Mexico
Mills, William 55 2009 Chief Executive, Europe, Middle East and Africa
Corbat, Michael 50 2009 Chief Executive Officer of Citi Holdings
Forese, James 46 2011 Chief Executive Officer - Securities and Banking
Apte, Shirish 58 2009 Chief Executive Officer, Asia-Pacific
Bird, Stephen 44 2009 Chief Executive Officer, Asia-Pacific
Verme, Alberto 53 2009 Chief Executive Officer, Europe, the Middle East and Africa
McQuade, Eugene 62 2009 Chief Executive Officer of Citibank N.A.
d'Archirafi, Francesco 2011 Chief Executive Officer - Global Transaction Services
Walsh, Jeffrey 53 2009 Chief Accounting Officer, Controller
Callahan, Don 54 2008 Chief Administrative Officer
Leach, Brian 51 2008 Chief Risk Officer
Helfer, Michael 65 2003 General Counsel, Corporate Secretary
Joss, Robert 69 2009 Director
Belda, Alain 67 1997 Independent Director
Rodin, Judith 66 2004 Independent Director
Ryan, Robert 67 2007 Independent Director
Ricciardi, Lawrence 70 2008 Independent Director
Thompson, William 65 2009 Independent Director
Santomero, Anthony 64 2009 Independent Director
O'Neill, Michael 64 2009 Independent Director
Taylor, Diana 56 2009 Independent Director
Collins, Timothy 55 2009 Independent Director
Zedillo, Ernesto 59 2010 Independent Director
Address:
399 Park Avenue
New York, New York 10043-0001
U.S.A.
Citigroup Inc. has the world's largest financial services network, spanning 140 countries with approximately 16,000 offices worldwide. The company employs approximately 260,000 staff around the world, and holds over 200 million customer accounts in more than 140 countries. It is a primary dealer in US Treasury securities.[3]
Citigroup suffered huge losses during the global financial crisis of 2008 and was rescued in November 2008 in a massive bailout by the U.S. government.[4] Its largest shareholders include funds from the Middle East and Singapore.[5] On February 27, 2009, Citigroup announced that the United States government would take a 36% equity stake in the company by converting $25 billion in emergency aid into common shares; the stake was reduced to 27% after Citigroup sold $21 billion of common shares and equity in the largest single share sale in US history, surpassing Bank of America's $19 billion share sale one month prior.
Citigroup is one of the Big Four banks in the United States, along with Bank of America, JP Morgan Chase and Wells Fargo.
Citigroup Inc. (Citigroup), incorporated in 1988, is global a diversified financial services holding company. Citigroup businesses provide consumers, corporations, governments and institutions with a range of financial products and services. As of December 31, 2010, the Company had approximately 200 million customer accounts and conducted business in more than 160 countries and jurisdictions. Citigroup operates two primary business segments: Citicorp, consisting of its Regional Consumer Banking (RCB) businesses and Institutional Clients Group (ICG), and Citi Holdings, consisting of its Brokerage and Asset Management (BAM), Local Consumer Lending (LCL) businesses and a Special Asset Pool (SAP). On February 1, 2011, Citigroup acquired Maltby Acquisitions Limited (Maltby).
Citicorp
Citicorp is the Company’s global bank for consumers and businesses and represents its core franchise. Citicorp operates in approximately 100 countries, and offers services in over 160 countries and jurisdictions. As of December 31, 2010, Citicorp had approximately $1.3 trillion of assets and $760 billion of deposits, representing approximately 67% of Citi’s total assets and approximately 90% of its deposits. Citicorp consists of two businesses: RCB, which includes retail banking and Citi-branded cards in four regions: North America, Europe, Middle East and Africa (EMEA), Latin America and Asia, and ICG, which includes Securities, and Banking and Transaction Services.
RCB consists of Citigroup’s four RCB businesses that provide traditional banking services to retail customers. RCB also contains Citigroup’s branded cards business and its local commercial banking business. RCB is a globally diversified business with over 4,200 branches in 39 countries worldwide. During the year ended December 31, 2010, 54% of total RCB revenues were from outside North America. In addition, international revenues and loans were from emerging economies in Asia, Latin America, Central and Eastern Europe and the Middle East. As of December 31, 2010, RCB had $330 billion of assets and $309 billion of deposits.
Citi Holdings
BAM, which constituted approximately 8% of Citi Holdings by assets, as of December 31, 2010, consists of the Company’s global retail brokerage and asset management businesses. LCL, which constituted approximately 70% of Citi Holdings by assets, as of December 31, 2010, includes a portion of Citigroup’s North American mortgage business, retail partner cards, Western European cards and retail banking, CitiFinancial North America and other local Consumer finance businesses globally. SAP, which constituted approximately 22% of Citi Holdings by assets. At December 31, 2010, BAM had approximately $27 billion of assets, primarily consisting of Citi’s investment in, and assets related to, the MSSB JV.
Local Consumer Lending
Local Consumer Lending (LCL), which accounted approximately 70% of Citi Holdings by assets as of December 31, 2010, includes a portion of Citigroup’s North American mortgage business, retail partner cards, Western European cards and retail banking, CitiFinancial North America and other local Consumer finance businesses globally. During 2010, the Student Loan Corporation is reported as discontinued operations within the corporate/other segment. As of December 31, 2010, LCL had $252 billion of assets ($226 billion in North America). Approximately $129 billion of assets in LCL as of December 31, 2010 consisted of United States mortgages in the Company’s CitiMortgage and CitiFinancial operations. The North American assets consist of residential mortgage loans (first and second mortgages), retail partner card loans, personal loans, commercial real estate (CRE), and other consumer loans and assets.
Institutional Clients Group
Institutional Clients Group (ICG) includes Securities and Banking and Transaction Services. ICG provides corporate, institutional, public sector and high-net-worth clients with a range of products and services, including cash management, trade finance and services, securities services, trading, underwriting, lending and advisory services, around the world. ICG’s international presence is supported by trading floors in approximately 75 countries and a proprietary network within Transaction Services in over 95 countries. As of December 31, 2010, ICG had $953 billion of assets and $451 billion of deposits.
Securities and Banking
Securities and Banking (S&B) offers a array of investment and commercial banking services and products for corporations, governments, institutional and retail investors, and high-net-worth individuals. S&B includes investment banking and advisory services, lending, debt and equity sales and trading, institutional brokerage, foreign exchange, structured products, cash instruments and related derivatives, and private banking. S&B revenue is generated primarily from fees for investment banking and advisory services, fees and interest on loans, fees and spread on foreign exchange, structured products, cash instruments and related derivatives, income earned on principal transactions, and fees and spreads on private banking services.
Transaction Services
Transaction Services consists of Treasury and Trade Solutions (TTS) and Securities and Fund Services (SFS). TTS provides cash management and trade finance and services for corporations, financial institutions and public sector entities worldwide. SFS provides securities services to investors, such as global asset managers, custody and clearing services to intermediaries, such as broker-dealers, and depository and agency/trust services to multinational corporations and governments globally. Revenue is generated from net interest revenue on deposits in TTS and SFS, as well as from trade loans and fees for transaction processing and fees on assets under custody and administration in SFS.
The purchase of Golden State was funded in part from the spinoff of Travelers Property Casualty, a business that was considered more volatile and expected to grow more slowly than other Citigroup operations. In March 2002, 23.1 percent of the equity in the Travelers unit was sold to the public through an initial public offering (IPO) that raised more than $12 billion. Most of Citibank's remaining stake was distributed to shareholders in August of that year. Additional 2002 initiatives included the reorganization of the company's operations into a matrix-like structure encompassing nine product areas and six geographic regions; the start-up of retail banking operations in both China and Russia; and the formation of an alliance with Shanghai Pudong Development Bank to enter the emerging credit card market in China.
For Citigroup, however, the year 2002 is likely to be best remembered as the year of scandal. In addition to the Associates' deceptive marketing scandal, a number of state and federal investigations were launched into the questionable practices of the Salomon Smith Barney investment bank and equity research unit. Salomon's influential telecommunications analyst, Jack Grubman, was accused of hyping the stock of several firms whose shares later tanked, the firms having returned the favor by sending hundreds of millions of dollars in investment banking fees Salomon's way. Grubman resigned in disgrace in August 2002, but not before accepting a $33 million severance package. Weill himself was caught up in the scandal, when allegations were raised that he had tried to persuade Grubman to raise his rating on the stock of AT&T Corp., a firm for which Weill served as a director. In April 2003 Citigroup's Salomon (which by this time had dropped its scandal-associated name in favor of Citigroup Global Markets, Inc.) was part of a landmark $1.4 billion settlement between ten Wall Street firms and the New York Attorney General, the Securities and Exchange Commission (SEC), and other regulatory agencies. Citigroup agreed to pay $400 million in fines and payments--the largest amount paid by one firm. Grubman was fined $15 million and was barred from working in the securities industry for the rest of his life. Weill (along with other senior officers) was barred from speaking directly with Citigroup analysts on investment banking matters. The SEC also mandated the separation of investment banking and equity research operations--the building of a so-called Chinese wall--a move that Citigroup had already taken in creating a new and independent business unit called Smith Barney to be the corporation's retail brokerage house and equity research unit.
Citigroup also was embroiled in the huge Enron Corporation scandal. Both Citigroup and J.P. Morgan Chase & Co. were key Enron bankers and were involved in funding off-the-books ventures that played a central role in the alleged fraud that Enron executives had committed against the company's shareholders. The banks loaned billions of dollars to the Houston energy trading firm but structured the loans in such a way that the added debt was hidden from shareholders and in fact appeared to boost Enron's cash flow. In July 2003 Citigroup and J.P. Morgan reached an agreement with the SEC and others whereby they would pay a total of $305 million to settle the Enron case, with Citigroup's share being $145.5 million.
Despite these settlements, Citigroup still faced private and class-action lawsuits that had been filed on behalf of investors, bondholders, and others in relation to these scandals. In anticipation of the expected fines and anticipated settlement costs, the corporation had set aside $1.5 billion as a litigation reserve in December 2002. Remarkably, Citigroup still managed to report record net income of $15.28 billion for the year. On the other hand, the scandals battered the corporation's stock, which fell about 25 percent for the year--a loss in market value of about $60 billion.
Although Citigroup's reputation had certainly been tarnished by the firm's involvement in the wave of corporate scandals that rocked the United States in the early 2000s, Weill tried to win the public relations battle by adopting reform measures ahead of the regulators and legislators. For example, Citigroup announced that at the beginning of 2003 it would begin expensing the cost of all stock options for employees, management, and board members, a move that many observers believed was necessary to provide a more accurate accounting of the finances of a company. In July 2003 Weill made headlines through a long-anticipated announcement: the tapping of a successor. Weill said that he would step down as CEO at the end of 2003, and Charles O. Prince was named to succeed him. Prince was a longtime Weill lieutenant who had been named COO in 2001 and later was placed in charge of the scandal-ridden investment bank. It also was announced that the head of the Citigroup consumer banking operation, Robert B. Willumstad, would succeed Prince as COO. Weill planned to stay on as chairman through early 2006. Meantime, two other July 2003 announcements signaled that Citigroup had weathered the scandal storm: the firm said that it would increase its dividend by 75 percent and that it would acquire the huge credit card business of Sears, Roebuck and Co. for about $3 billion.
Principal Subsidiaries: Citibank, N.A.; CitiFinancial; Citigroup Global Markets, Inc.; The Citigroup Private Bank; Primerica Financial Services, Inc.; The Travelers Life and Annuity Company; Grupo Financiero Banamex, S.A. de C.V. (Mexico).
Principal Operating Units: Global Consumer Group; Global Corporate and Investment Bank Group; Global Investment Management; Global Markets; Citigroup International.
Principal Competitors: J.P. Morgan Chase & Co.; Bank of America Corporation; Deutsche Bank AG; UBS AG; Merrill Lynch & Co., Inc.; The Goldman Sachs Group, Inc.; Credit Suisse Group.
OVERALL
Beta: 2.56
Market Cap (Mil.): $130,742.40
Shares Outstanding (Mil.): 29,118.58
Annual Dividend: --
Yield (%): --
FINANCIALS
C.N Industry Sector
P/E (TTM): 14.42 14.40 26.21
EPS (TTM): 292.74 -- --
ROI: -- 0.00 4.63
ROE: 5.77 3.25 9.08
Statistics:
Public Company
Incorporated: 1812 as the City Bank of New York
Employees: 255,000
Total Assets: $1.09 trillion (2002)
Stock Exchanges: New York Pacific Mexican
Ticker Symbol: C
NAIC: 522110 Commercial Banking; 522210 Credit Card Issuing; 522291 Consumer Lending; 522220 Sales Financing; 522320 Financial Transactions Processing, Reserve, and Clearing House Activities; 523110 Investment Banking and Securities Dealing; 523120 Securities Brokerage; 523991 Trust, Fiduciary, and Custody Activities; 524113 Direct Life Insurance Carriers; 525910 Open-End Investment Funds; 523920 Portfolio Management; 551111 Offices of Bank Holding Companies
Key Dates:
1812: Colonel Samuel Osgood takes over the New York branch of First Bank of the United States and reorganizes it as City Bank of New York.
1865: The bank converts to a national charter, adopting the name National City Bank of New York (NCB).
1897: NCB becomes the first major U.S. bank to open a foreign department.
1918: Foreign operations are enlarged through the purchase of International Banking Corporation.
1919: NCB is the first U.S. bank to reach $1 billion in assets.
1933: Passage of the Glass-Steagall Act forces NCB to divest its securities affiliate and greatly reduce its financial services offerings.
1955: NCB acquires the First National Bank of New York and changes its name to First National City Bank of New York.
1961: The bank invents a new product: the negotiable certificate of deposit (CD).
1962: The name of the bank is shortened to First National City Bank.
1965: The bank enters the credit card business.
1968: A one-bank holding company, First National City Corporation (FNCC), is created and becomes the parent of the bank.
1974: The name of the holding company is changed to Citicorp.
1976: First National City Bank is renamed Citibank, N.A.
1987: Citicorp sets aside a $3 billion reserve fund as a provision against potentially bad Third World loans and also posts a $1.2 billion loss for the year.
1991: Restructuring and other charges result in an $885 million loss for the third quarter, and company shareholders do not receive a quarterly dividend for the first time since 1813.
1998: Citicorp merges with financial services giant Travelers Group Inc. to form Citigroup Inc.
1999: Passage of the Financial Services Modernization Act, which does away with the regulation of Glass-Steagall, blesses the marriage of Citicorp and Travelers after the fact, meaning the firm can engage in both banking and insurance.
2000: Associates First Capital Corporation, a consumer finance company specializing in subprime loans, is acquired and merged into CitiFinancial.
2001: Citigroup acquires Grupo Financiero Banamex, a leading retail bank in Mexico.
2002: Citigroup spins off Travelers Property Casualty; the company becomes embroiled in scandals involving its equity research and investment banking operations as well as loans to Enron Corporation.
2003: The corporation agrees to pay $400 million to settle the equity research charges and $145.5 million to settle the Enron case.
Name Age Since Current Position
Parsons, Richard 62 2009 Independent Chairman of the Board
Pandit, Vikram 54 2007 Chief Executive Officer, Director
Havens, John 54 2011 President, Chief Operating Officer, CEO - Institutional Clients Group
Kaden, Lewis 68 2010 Vice Chairman, Chairman - Public Sector Group and Institutional Clients Group
Kelly, Edward 57 2011 Vice Chairman, Chairman - Institutional Clients Group
Gerspach, John 57 2009 Chief Financial Officer
Grundhofer, Jerry 66 2009 Independent Director; Chairman Emeritus, U.S. Bancorp
Medina-Mora, Manuel 60 2010 CEO - Consumer Banking, Americas, Chmn - Global Consumer Council, Chmn & CEO, Latin America & Mexico
Mills, William 55 2009 Chief Executive, Europe, Middle East and Africa
Corbat, Michael 50 2009 Chief Executive Officer of Citi Holdings
Forese, James 46 2011 Chief Executive Officer - Securities and Banking
Apte, Shirish 58 2009 Chief Executive Officer, Asia-Pacific
Bird, Stephen 44 2009 Chief Executive Officer, Asia-Pacific
Verme, Alberto 53 2009 Chief Executive Officer, Europe, the Middle East and Africa
McQuade, Eugene 62 2009 Chief Executive Officer of Citibank N.A.
d'Archirafi, Francesco 2011 Chief Executive Officer - Global Transaction Services
Walsh, Jeffrey 53 2009 Chief Accounting Officer, Controller
Callahan, Don 54 2008 Chief Administrative Officer
Leach, Brian 51 2008 Chief Risk Officer
Helfer, Michael 65 2003 General Counsel, Corporate Secretary
Joss, Robert 69 2009 Director
Belda, Alain 67 1997 Independent Director
Rodin, Judith 66 2004 Independent Director
Ryan, Robert 67 2007 Independent Director
Ricciardi, Lawrence 70 2008 Independent Director
Thompson, William 65 2009 Independent Director
Santomero, Anthony 64 2009 Independent Director
O'Neill, Michael 64 2009 Independent Director
Taylor, Diana 56 2009 Independent Director
Collins, Timothy 55 2009 Independent Director
Zedillo, Ernesto 59 2010 Independent Director
Address:
399 Park Avenue
New York, New York 10043-0001
U.S.A.
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