CITI BANK PROJECT MCOM PART 1

CITY BANK

K.J.SOMAIYA COLLEGE OF ARTS AND
COMMERCE
Vidyanagar, Vidyavihar, Mumbai-400077

PROJECT ON

CITI BANK
SUBMITTED BY:
MISS. PRITI RAJENDRA PARAB
ROLL NO. 37
MCOM PART - 1
(ECONOMICS OF GLOBAL TRADE AND FINANCE)
AFFILIATED TO:
MUMBAI UNIVERSITY
PREPARED UNDER THE GUIDANCE OF
PROF. DR.C.V. HARI NARAYANAN

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DECLARATION BY THE STUDENT

I, Miss. PRITI RAJENDRA PARAB student of M.Com Part-1 Roll No. 37
hereby declare that the project for the Paper ―ECONOMIC OF GLOBAL TRADE AND
FINANCE‖ title ―CITY BANK " submitted by me for Semester-I during the academic year
2013-14, is based on actual work carried out by me under guidance and supervision of
PROF.DR.C.V.HARI NARAYANAN.

I further state that this work is original and not submitted anywhere else for any
examination

Signature of student

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CERTIFICATE

This is to certify that PRITI RAJENDRA PARABof M.Com Part-I Semester –I
(2013-2014) has successfully completed the project―ECONOMIC OF GLOBAL TRADE
AND FINANCE‖under the guidance ofPROF.DR.C.V.HARI NARAYANAN.

Course Co-ordinator

Project Guide/ Internal Examiner

Principal

External Examiner

CITY BANK

ACKNOWLEDGEMENT
The Project on ―ECONOMIC OF GLOBAL TRADE AND FINANCE‖ is a
result of co-operation, hard work and good wishes of many people. I student of―K.J.SOMAIYA
COLLEGE OFARTS AND COMMERCE‖ would like to thank the project
guide―PROF.DR.C.V.HARI NARAYANAN‖ for his involvement in my project work and
timely assessment that provided me with valued guidance throughout my study.
I express my deep gratitude to all my college friends and my family members
whose efforts and creativity has helped me giving a final shape and structure to the project work.
I am also thankful to all those seen and unseen hands and heads , which have been
of director help in the completion of this project work.

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TOPIC
INTRODUCTION
Segments
Global Consumer Banking
Operating Regions
Financial Statements
Global Consumer
North America
Asia
Emea
2. Latin America
4. Consolidated Financial Statement
Vision and Mission
Citi’s Mission Statement and Principles
PEST Analysis
9. Political Influence
Economical Influence
SOCIal Influence
.Technological Influence
Citi’s diversification strategy
Fundamentals of Citi’s Strategy
VALUE CHAIN
SWOT Analysis
Porter’s 5 forces – Citibank
Threat of New Entrants
Power of Suppliers
Power of BUYErs
22. Availability of Substitutes
24. Competitive Rivalry
HISTIRY

26.

Historical Data

27.

Subsidiaries

28.

Joint ventures

29.

CEO OF CITY BANK-Pramit Javeri
Programme Undertaken By City Bank
1. Employee Engagement Programs
2. Global Community Day
3.
Payroll Giving Program
4.Citi India Volunteer Program
Global Consumer Banking Faicilities
1.
Credit Cards

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2.
Retail Banking
3.
Institutional Clients Group
4 Corporate and Investment Banking
5. Capital Markets Origination
Corporate citizenship
Corporate Strategy
1. Financial Inclusion
2. Environmental Sustainability
3.
A Diverse Workforce
Managing Global Risk
2.Risk Aggregation And Stress Testing
3.
Risk Capital
4 Credit Risk
5
Operational Risk
Recent Awards & Recognition

INTRODUCTION

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Citi was incorporated in 1988.Citi - a diversified global financial institution.
Citi is the first financial services company in the U.S. to bring together banking,
insurance, and investments under one umbrella.It provides a broad range of financial
products and services to consumers and corporate customers globally. Citi has the
world's largest financial services network.It’s business covers 107 countries with
approximately 2,000 offices in the world.Citi - a premier local financial institution Citi
- the single largest foreign direct investor in the financial services industry in the
country.
•

A customer base of over
–
–

2500 small and medium enterprises,

–

40,000 asset based financing clients and

–
•

1500 large corporates and multinationals,

7 million retail customers.

It offers a comprehensive suite of products and services to both commercial and retail
clients across all economic segments and lifecycle stages.

Facts about Citi India
•

Cash management throughputs at Citi India equal 40% of India's GDP.

•

Citibank India’s e-business portal is the most visited Indian financial site.

•

CFIL has financed over 130,000 trucks in India.

•

Citigroup Global Services, is one of India’s largest BPO service providers and services
Citi operations in 36 countries.

•

Citi - the first company in India to introduce stock options for its employees.

•

Citi - the first financial institution to export software services from India.

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•

Citi has provided core funding of Rs. 15.4 crore to the Indian School of Micro Finance –
the first such school in Asia.

Segments
Citicorp
Regional Consumer Banking
Institutional Clients Group

Citi Holdings
Brokerage and Asset Management
Local Consumer Lending
Special Asset Pool

Corporate
Treasury
Other corporate expenses

GLOBAL CONSUMER BANKING
Global Consumer Banking (GCB) consists of Citigroup’s four geographical Regional Consumer
Banking (RCB) businesses that provide traditional banking services to retail customers through
retail banking, commercial banking, Citi-branded cards and Citi retail services. GCB is a
globally diversified business with 4,008 branches in 39 countries around the world. For the year
ended December 31, 2012, GCB had $387 billion of average assets and $322 billion of average
deposits. Citi’s strategy is to focus on the top 150 cities globally that it believes have the highest
growth potential in consumer banking. Consistent with this strategy, as announced in the fourth
quarter of 2012 as part of its repositioning efforts, Citi intends to optimize its branch footprint
and further concentrate its presence in major metropolitan areas. As of December 31, 2012, Citi
had consumer banking operations in approximately 120, or 80%, of these cities.

Operating Regions

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Regions
 North America
 Europe, Middle East & Africa
 Latin America
 Asia

Vision and Mission
Vision

MISSION
•

•

To be the leader in
providing business

Our goal for Citigroup is to
be the most respected global
financial services company.
Like any other public
company, we're obligated to

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Mission
Our core mission is not to be a financial supermarket or a “shadow
bank.”
Our core mission is to be
the global bank
for institutions and individuals,
and to serve our clients with distinction.
We bring them
unique value through our
global reach and innovative solution

PEST Analysis
1. Political Influence
1 Citigroup – major corporate political spender

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2. Citigroup operates in more than 100 countries worldwide; they obey legislation
specific to country
3. Election Cycle Trends - significant donations to 527 groups
4. Trade Association Activity
a. contributed approximately $8.5 million in corporate funds to political
activities since 2002

2.Economical Influence
1 As a multinational, Citi is subject to fiscal policies employed by governments in
various countries
2

Incurred loss of $22 billion during Global downturn 2008.

3. Citi’s financial results are closely tied to the global and local economic conditions
a. liquidity of the global financial markets
b. prevailing interest rates
c. the rate of unemployment
d. the level of consumer confidence
e. changes in consumer spending
f. the number of personal bankruptcies

3. Social Influence
1. Target is Individual consumers as well as small medium businesses
2. The Citi Foundation is committed to maintaining economically vibrant and
environmentally sustainable communities

4.Technological Influence
1. Citigroup Works with Cisco Systems to Capitalize on Digital Media
– to help Citigroup identify appropriate intellectual capital to distribute to
clients and employees
– to help the bank develop the right advanced content delivery,
multicasting, and core-networking technology to disseminate it.
2. Use technology for e-Business model

Generic business level strategy

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Citi follows “Differentiation Strategy”

Corporate Growth Strategy

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Horizontal Integration

Vertical Integration
Forward or Backward

Corporate
Concentration

Growth

Diversification
Related or Unrelated

Forwar
International
Global or Multi-domestic
d or Backward

Citi’s diversifiCation strategy
•
•

Diversify into related businesses under some coherent strategic theme
Potential benefits of related diversification
• Cross-business sharing of expertise, capabilities and technology
• Exploit economics of scope and capture synergy benefits from
combining similar operations of different businesses
• Enable collaboration to develop new strengths and create new
competitive capabilities
• Leverage use of a company’s brand name
• Increase market power
• Drawbacks of related diversification
• Difficulties of integrating the operations of businesses with different
cultures

fundamentals of Citi’s strategy

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Client focus
Global strength
Constant innovation

History
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1812 - founded as City Bank of New York.
1894 - became the largest bank in the United States.
1902 - began expanding internationally and became the first major U.S. bank to
establish a foreign department.
1930 - became the largest bank in the world with 100 branches in 23 countries
outside the United States.
1976 - changed its name to Citibank.
1981 - purchased Diners Club.
1994 - opening of the first fully foreign owned commercial bank in Russia
1995 - opening of the first full service branch in China
1998 - Citibank was merged into Citigroup

Citibank
•
•
•

Citibank is the consumer and corporate banking division of leading financialservices
company Citigroup.
The company has operations in around 1,700 locations, in more than 140 countries
worldwide.
Citibank offers the following products and services:
– Banking services
– Credit cards
– Mortgages, Loans
– Investments
– Insurance
– Small business services
– Corporate/Institutional services
– Asset management
– Government services
– Private banking
–

Value Chain
•

Citibank represents both a Business-to-Consumer (B2C) and Business-to-Business
(B2B) organizational model

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•
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It creates value by
limiting the intermediaries involved with the distribution of its product,
streamlining its business and
reducing costs.
This value creation ultimately increases profits.

SWOT Analysis

Strengths

Weaknesses

Global network

Tarnished brand name

Backing of the Citigroup

Online operations are geared
towards US clients

Innovative product offering
Comprehensive selection of financial
products and services.

Issues of Corporate Governance Size of company challenges clear
focus across all divisions.

Opportunities

Threats

Growth markets

Foreign exchange fluctuations

Chinese market

Market conditions

Online presence

Regulatory forces

• Strong privacy and
Strengthen customer relationships
data policies
by community involvement

Competition from brick and mortar
banks, combination brick and clicks
and pure play bank

• Good Corporate
Look for acquisitions that are
Citizen

Citibank Strategies
•
•

entities and financial services
providers
Position itself as US leading International Bank

A Premier local financial and
compelling strategically institution
financially

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Focus on Technology
Full Fledged platform of highest quality services
Innovative products
Focus on corporate and multinationals
Banking upon an old and trusted name
Corporate Social Responsibility

Core Competencies

"A core competency is an area of specialized
expertise that is the result of harmonizing
complex streams of technology and work activity."
– C.K.Prahalad

•

Core Competencies:
– Proprietary data
– Operating in over 100 countries and as a local bank, serving growing
companies in 78 emerging-market countries and territories
– Citigroup is considered a leader in online financialservices

– Additionally, Citibank's technology platform supports it
customer's need for transaction efficiency and tangible business
results.

Competitor Analysis
• Bank of America:
–

Provides a demonstration of their online banking product

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–

Clearly defines their policy for online banking that guarantees $0 liability for
unauthorized bill pay

• Wells Fargo:
–

E-business aggregation

porter’s 5 forCes – Citibank

1. Threat of New Entrants
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Low / high (exceptions)
Existing loyalty to major brands
Huge Investments

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Incentives for using a particular buyer (such as frequent shopper programs)
High fixed costs
Scarcity of resources
High costs of switching companies
Government restrictions or legislation
There is virtually no chance of a new entrant significantly affecting the major banks'
market share. The only place that new entrants may have a chance in the industry is
through Internet banking, because of its low cost.

2. Power of Suppliers
•
•
•
•
•
•

•

Low to medium
There are very few suppliers of particular product categories
There are almost no substitutes in some product categories
Switching to another (competitive) product is very costly
The supplying industry has a higher profitability than the buying industry .
Opportunities:
– Because of the increasing amount of technology Internet banking will begin
to replace traditional banking, thus cutting personnel costs.
– Incorporating investment banking into the banking industry, as some major
companies are doing.
Threats:
– An increase in interest rates causing a decline in bank activity.
– A collapse of the Fed leading to bank failures, a repeat of the crash of 1929.
– A decline in the US economy leading to a fall in the value of the dollar, thus
causing an instable economy.

3. Power of Buyers
•
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Medium to High
Large number of buyers
Purchases large volumes
Concentration Ratio is medium being international
Information is easily available to the customer
Switching to another (competitive) product is simple
The product is not extremely important to buyers; they can do without the
product for a period of time
Customers are price sensitive

4. Availability of Substitutes
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Low to medium
Internet

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•
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If substitutes are similar, it can be viewed in the same light as a new entrant
Presence of companies like Western Union, PayPal and Xe.com
This is not really an issue within the banking industry, because there aren't really
any legal alternatives, except buying a safe and borrowing from a loan shark

5. Competitive Rivalry
•

A highly competitive market might result from:
– Many players of about the same size; there is no dominant firm
– Little differentiation between competitors products and services
– A mature industry with very little growth; companies can only grow by
stealing customers away from competitors
– Technologically Advanced companies
– Introduction of new products by competitors
– The banking industry is continuing to restructure and position itself for our
changing economy as a result, many mega-mergers have occurred in recent
years. Citicorp and Travelers Insurance agreed to merge in April 1998 at a
value of $70 billion.Bank mergers are usually consummated as a cost-cutting
measure but also to compete with non-bank providers of financial services.

Suggested Strategies
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Strengthen customer relationships by community involvement
Communicate benefits of online presence clearly
Look for acquisitions that are compelling strategically and financially
Handle major international operations from India to gain expenses benefit
Position itself as a Global bank focusing on Indian consumers benefit
Innovative products in emerging businesses like mortgage, equity, consumer finance

HISTORY

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Citibank, one of the major international banks, is the consumer banking arm of financial
services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First
National City Bank of New York. As of March 2010, Citigroup is the third largest bank holding
company in the United States by total assets, after Bank of America and JPMorgan Chase.
Citibank has retail banking operations in more than 160 countries and territories around the
world. More than half of its 1,400 offices are in the United States, mostly in New York
City, Chicago, Los Angeles, the San Francisco Bay Area, Washington, D.C. andMiami. More
recently, Citibank has expanded its operations in the Boston, Philadelphia, Houston,
and Dallas metropolitan areas.
In addition to the standard banking transactions, Citibank offers insurance, credit cards and
investment products. Their online services division is among the most successful in the
field [2] claiming about 15 million users.
As a result of the global financial crisis of 2008–2009 and huge losses in the value of its
subprime mortgage assets, Citibank was rescued by the U.S. government under plans agreed for
Citigroup. On November 23, 2008, in addition to initial aid of $25 billion, a further $25 billion
was invested in the corporation together with guarantees for risky assets amounting to
$306 billion.[3] Since this time, Citibank has repaid its government loans in full

Early history
The City Bank of New York was founded on June 16, 1812. The first president of the City Bank
was the statesman and retired Colonel,Samuel Osgood, ownership and management of the bank
was taken over by Moses Taylor, a protégé of John Jacob Astor and one of the giants of the
business world in the 19th century. During Taylor's ascendancy, the bank functioned largely as a
treasury and finance center for Taylor's own extensive business empire.[citation needed]
In 1863, the bank joined the U.S.'s new national banking system and became The National City
Bank of New York. By 1868, it was considered one of the largest banks in the United States, and
in 1897, it became the first major U.S. bank to establish a foreign department.
When the Federal Reserve Act allowed it,[6] National City became the first U.S. national bank to
open an overseas banking office when its branch in Buenos Aires, Argentina, was opened in
1914. Many of Citi's present international offices are older; offices in London,
Shanghai, Calcutta, and elsewhere were opened in 1901 and 1902 by the International Banking
Corporation (IBC), a company chartered to conduct banking business outside the U.S., at that
time an activity forbidden to U.S. national banks. In 1918, IBC became a wholly owned
subsidiary and was subsequently merged into the bank. By 1919, the bank had become the first
U.S. bank to have $1 billion in assets.
Charles E. Mitchell was elected president in 1921 and in 1929 was made chairman, a position he
held until 1933. Under Mitchell the bank expanded rapidly and by 1930 had 100 branches in 23
countries outside the United States. The policies pursued by the bank under Mitchell's leadership
are seen by historical economists as one of the prime causes of the stock market crash of 1929,

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which led ultimately to the Great Depression.[citation needed] In 1933 a Senate committee, the Pecora
Commission, investigated Mitchell for his part in tens of millions dollars in losses, excessive
pay, and tax avoidance. Senator Carter Glass said of him: "Mitchell more than any 50 men is
responsible for this stock crash."
The name change also helped to avoid confusion in Ohio with Cleveland-based National City
Bank, though the two would never have any significant overlapping areas except for Citi credit
cards being issued in the latter National City territory. (In addition, at the time of the name
change to Citicorp, National City of Ohio was mostly a Cleveland-area bank and had not gone on
its acquisition spree that it would later go on in the 1990s and 2000s.) Any possible name
confusion had Citi not changed its name from National City eventually became completely moot
when PNC Financial Services acquired the National City of Ohio in 2008 as a result of
the subprime mortgage crisis.
Citibank commenced business in Kenya on 15th August 1974 under the name ―First
National City Bank " and has since evolved to be known today as Citibank N.A. Kenya
Branch (―Citi Kenya‖). It is a full service branch of Citibank, N.A. headquartered in New
York.
Citibank is a part of Citigroup Inc, the pre-eminent financial services organization in the
world formed in 1998 as a result of the merger between Citicorp and the Travelers Group
divisions. Citigroup has operations in over 100 countries around the globe, with assets
totalling US$1.1 trillion and 268,000 employees worldwide.‖
Citibank has two branches in Kenya. The head office is located at Citibank House in
Upperhill, Nairobi. Our Mombasa branch located at Citibank House, Nkrumah Road was
opened on 1st October 1989.
Citibank Kenya is the head office of the Citibank East Africa organization, which covers
Citibank branches in Kenya, Tanzania, Uganda and Zambia. This is a part of the larger
South and East Africa cluster of Citibank headquartered in Johannesburg, South

Nationwide expansion
Citibank's major presence in California is fairly recent. The bank had only a handful of branches
in that state before acquiring the assets of California Federal Bank in 2002 with Citicorp's
purchase of Golden State Bancorp which had earlier merged with First Nationwide Mortgage
Corp.
In 2001, Citibank settled a $45 million class action lawsuit for improperly assessing late fees.
Following this Citibank lobbied the United States Congress to pass legislation that would limit
class action lawsuits to $5 million unless they were initiated on a federal level. Some consumer
advocate websites report that Citibank is still improperly assessing late fees.
In August 2004, Citibank entered the Texas market with the purchase of First American Bank
of Bryan, Texas. The deal established Citi's retail banking presence in Texas, giving Citibank
over 100 branches, $3.5 billion in assets and approximately 120,000 new customers in the state.

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First American Bank was renamed Citibank Texas after the take-over was completed on March
31, 2005.
In 2008, Citibank was crowned Deal of the Year – Securitisation Deal of the Year at the 2008
ALB Japan Law Awards.

Historical data
Asset/Liability Ratio

Net Income

CitiBank was the third-largest bank at the end of 2008 as an individual bank.

Subsidiaries
According to the Citigroup website, until October 2006, Citibank ran the following subsidiaries:
Citibank, N.A.(National Association) – The "original" Citibank, primarily doing business in
New York State and the tri-state New York metropolitan area. Also the parent company of
the other subsidiaries.
Citibank Canada – One of Canada's longest-serving foreign banks, currently with 3,400
employees from coast to coast.
Citibank Texas, N.A. – The former First American bank.
Citibank (West), F.S.B. – The former Citicorp Savings (a savings and loan operating in
California), as well as the former California Federal Bank and Golden State Bank.

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Citibank, F.S.B. – The primary Citibank subsidiary serving all other states, based in Chicago.
Citibank Banamex USA – Formally California Commerce Bank, Banamex's U.S. banking
division.
Citibank (South Dakota), N.A. – A credit card and lending-only bank based in Sioux Falls,
South Dakota, including the former Associates National Bank.
Universal Financial Corp. – A credit card bank, purchased in 1997, that manages the AT&T
Universal Card.
On October 1, 2006, a massive re-organization designed to streamline the various Citibank
banking charters occurred. Citibank, N.A. absorbed the following divisions, with its headquarters
for FDIC purposes being its Paradise Road Las Vegas, Nevada branch.
Citibank, FSB
Citibank (West), FSB
Citibank, Texas, N.A.
Citibank Delaware
Citibank Banamex USA
Citicorp Trust, N.A. (California)
The following divisions were consolidated into Citibank (South Dakota), N.A., with its
headquarters for FDIC purposes being in Sioux Falls, South Dakota.
Citibank, Nevada, N.A.
Citibank USA, N.A.
Universal Financial Corp.
Citibank South Dakota, FSB
On March 29, 2011, Citibank, N.A. and Citibank (South Dakota), N.A. announced their
intentions to further consolidate their banking charters by announcing a merger[18] which was
finalized on July 1, 2011. The surviving FDIC charter was that of Citibank, N.A. which, as part
of the merger, moved its headquarters to that of Citibank (South Dakota), N.A.'s in Sioux Falls.
In 2005, Macy's, Inc. under its former corporate name Federated Department Stores, sold its
consumer credit portfolio to Citigroup, reissuing its cards under the Federated-Citigroup Alliance
name Department Stores National Bank (DSNB) and allowing Federated to continue servicing
the credit accounts from its Financial, Administrative and Credit Services Group (FACS Group
Inc.). The cards involved are Macy's and Bloomingdale's.
Citibank's private-label credit card division, Citi Commerce Solutions, issues store-issued credit
card for such companies as: Sears, ConocoPhillips, ExxonMobil, The Home Depot,Staples, Shell
Oil, and others.
The German branch, the Citibank Privatkunden AG & Co. KGaA was sold in July 2008 to the
French Crédit Mutuel Group. On February 22, 2010 it was renamed to Targobank.

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Joint ventures
Mobile Money Ventures, a joint venture with SK Telecom
International subsidiaries
Citibank Algeria
Citibank Argentina
Citibank Australia
Citibank Belgium
Citibank Bangladesh
Citibank Brazil
Citibank Bulgaria
Citibank Canada
Citibank (China)
Citibank (Colombia)
Citibank (Dominican Republic)
Citibank Ecuador
Citibank (Egypt)
Citibank El Salvador
Citibank (Greece)
Citibank (Hong Kong)
Citibank (Honduras)
Citibank Hungary
Citibank India
Citibank Indonesia
Citibank Italy
Citibank Japan
Citibank Kazakhstan
Citibank Kenya
Citibank Korea
Citibank Malaysia
Banamex Mexico
Citibank Nicaragua
Citibank Nigeria
Citibank Pakistan
Citibank Peru
Citibank Philippines
Citi Handlowy (Poland)

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Citibank Portugal
Citibank Romania
Citibank Russia
Samba (Citibank for Saudi Arabia)
Citibank International Personal Bank Singapore/Citibank IPB Singapore
Citibank Singapore
Citibusiness Singapore
Citibank Slovakia
Citibank Spain
Citibank Taiwan
Citibank Thailand
Citibank Trinidad and Tobago
Citibank Tunisia
Citibank Türkiye
Citibank United Kingdom
Citibank Ukraine
Citibank Venezuela
Citibank Vietnam

Pramit Jhaveri
CEO, Citi India

Pramit Jhaveri is the CEO of Citi India and is responsible for all of Citi’s businesses in the
country. Pramit joined Citi India in 1987 and has 26 years of experience across multiple
functions of the bank. Prior to being appointed as CEO of Citi India, Pramit was responsible for
Citi's Corporate and Investment Banking business in India. He has been instrumental in leading
Citi to its current market leadership position in Investment Banking in India. Under his
leadership, Citi has been involved in several landmark M&A, Equity and Debt Capital markets
transactions in the country.

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Citi began doing business in India in 1902 and today is a very significant foreign investor in the
Indian financial market. The total capital employed in Citi’s banking and financial services
operations in India including retained earnings is in excess of $3 billion. Citi employs around
7,900 professionals. Under Pramit’s stewardship, Citi operates 42 retail branches in 30 cities
serving about 2 million credit card customers. Citi also banks more than 45,000 businesses,
ranging from multinationals, local corporate houses, local commercial banks to SMEs.
Pramit is actively involved with the following organizations:
Director, Pratham Education Foundation - established in 1994 and the largestNGO
working to
provide quality education to the underprivileged children of India.
Member of the Executive Committee and Co-chair of the Banking and FI committees at
FICCI – The Federation of Indian Chambers Commerce and Industry is the largest and
oldest apex business organization in India.
Co-chairperson of the IndiaBuilds Advisory Committee at Habitat for Humanity, India - a
not for profit organization dedicated to building affordable homes and providing low
cost, interest and collateral free mortgages to the poor.
Member of the Executive Board at the Indian School of Business – an internationally
acclaimed, research driven and independent premier management institution in India.
Member of the India Advisory council at the American Indian Foundation – the largest
diaspora philanthropy organization based out of the US and focused on India in the areas
of education, healthcare and employment.
Member of the Advisory Board at Namaste America – the Indo American Association for
Art and Culture is focused to promote and foster goodwill between the people of the
United States of America and India by supporting young talent from the two countries in
the areas of education, media, entertainment, science and sports.
Member of the Advisory Board for Catalyst India – a leading nonprofit organization
expanding opportunities for women in business.
Pramit holds a Bachelor of Commerce from Sydenham College, Mumbai, and an MBA in
Finance from University of Rochester, US.

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PROGRAMME UNDERTAKEN BY CITY BANK

More than Philanthropy
Volunteering and Giving
Employee Engagement Programs
Employee Engagement is an integral part of Citi's culture and strong drivers of the Citizenship
program. Every day around the world our employees put their passion, talent, and expertise to
work by helping organizations and causes they believe in, ultimately helping improve the
communities they live and work in. Citi provides platforms for employees to engage with local
communities, through its payroll giving program, event-based volunteering opportunities and
skill-based long-term engagement with NGO partners.

City Employee Cook and Serve the midday meal for children with Akshaya Patra in
Banglore

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Global Community Day
The Global Community Day is intrinsic to Citi's culture of giving back. Each year, employees
across the globe come together to contribute one day of their time to local communities.
Reinforcing this ongoing and long-standing commitment to supporting and nurturing
communities, in 2012, over 5,000 Citi employees, friends and families, joined the Global
Community Day on June 16. Citi partnered with over 50 NGOs across Mumbai, Delhi and
Chennai, to host large Community Carnival Fundraiser events in partnership with Concern India
Foundation, celebrating Citi's 200th anniversary. The 2013 Community Day will take place on
June 22.

Global Community Day Celebrations in Mumbai

Payroll Giving Program
Employees who desire to contribute money for reputed charitable causes can do so via the Citi
India Payroll Giving Program. This initiative supports six NGOs, each of which has been
carefully selected basis employee interest and adherence to global best practices in due diligence.
Core to the program, is Citi's in-house online Payroll Giving system which allows employees
across the country to manage their donations in real time. About 350 employees contributed
approximately INR 2.88 million to these NGOs, each year.

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Citi India Volunteer Program
Citi employees can opt to make longer term time commitments to communities through skillbased volunteering opportunities. This more-than-philanthropy approach, matches employee
skills to volunteering opportunities offered by our NGO partners, whether it be through shortterm task driven assignments or long term strategic support through mentorship and board
positions.
In September 2012, we launched the Citi India Volunteer Program offering 140 opportunities in
in Mumbai, Delhi and Chennai. The response was overwhelming as more than half the
opportunities were taken up in the first two days of launch.
We also offer employees the unique opportunity to take a sabbatical to work with communities
under the Teach for India fellowship program. More than 135 employees registered for the
fellowship in 2011 and the 3 finally selected for the fellowship are now part of a nationwide
movement that aims to bridge the educational gap in India by placing teachers in low-income
schools to teach full-time for 2 years.

Global Consumer Banking facilities
Citi’s Global Consumer Banking (GCB) serves more than 100 million clients across the world
through its unique footprint and capabilities, its presence in and understanding of local markets,
and the ability to deliver a consistent and enhanced banking experience. Strategically positioned
in the world’s top cities with the highest consumer banking growth potential, Global Consumer
Banking operates across Citi’s four regions — Asia Pacific; Europe, the Middle East and Africa;
Latin America; and North America. The primary business lines are Credit Cards, Retail
Banking, Mortgage and Commercial Banking. The collective GCB businesses account for $337
billion in deposits, $295 billion in loans, $154 billion in assets under management in Retail
Banking and approximately 4,0001 branches worldwide. Global Consumer Banking earnings
continued to grow in 2012. Pretax operating earnings increased by 48% to $10.1 billion —
nearly half of Citi overall. Net income2 grew 6% to $8.1 billion— its highest level ever.
Revenues of $40 billion, over the last 12 months, reached a new milestone. Additionally, average
loans grew 5% globally, with 9% international growth and2% growth in North America.

1. Credit Cards
Citi is the world’s largest credit card issuer, with 134 million accounts, $363 billion in annual
purchase sales and $150 billion in receivables across Citi Branded Cards and Citi Retail
Services credit cards.
1 .Approximately 4,000 total branches do not include ~600 Bancode Chile branches.
2 .Pretax earnings minus loan loss reserve releases minus fourth quarter repositioning charges.

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Operating in 38 countries, with more than 55 million accounts in circulation, Citi Branded Cards
provides payment and credit solutions to consumers and small businesses around the
world. The business has annual purchase sales of $292 billion and a loan portfolio of $111
billion. In 2012, Citi became the first non-domestic credit card issuer in China. New rewards
credit cards were introduced in El Salvador, the Philippines, Taiwan, the United Arab Emirates
and the U.S. Citi also introduced new co-brand cards for travelers with partners Hilton®
HHonorsTM, American Airlines AAdvantage®, AirAsia and Thai Airways. Citi is continually
expanding the ways in which card members can integrate rewards and social networking,
including the ThankYou® Points sharing app, which is the first application on Facebook that
enables members to share and combine points. This year, Banamex was the first financial
institution in Mexico to introduce MasterCard® PayPassTM, a contactless card payment
platform. Citi Retail Services provides consumer and commercial credit card products, services
and retail solutions to leading national and regional retailers across the U.S. Citi Retail Services
serves nearly 79 million accounts for a number of iconic brands, including The Home Depot,
Macy’s, Sears, Shell and ExxonMobil. In 2012, Retail Services renewed its long-standing
relationship with CITGO, launched a product with ExxonMobil and announced new
relationships with OfficeMax, Ford Motor Company and BrandSource. The business has
purchase sales of $71.5 billion and a loan portfolio of $38.6 billion.

2. Retail Banking
Centered in the world’s top cities with high consumer banking growth potential, Citibank serves
a full range of consumer banking needs, including checking and savings accounts, loans and
small business services. The optimization of theCitibank branch network continued throughout
2012 to further concentrate its presence in major metropolitan areas and focus on target
consumer segments. Our renowned Citi Smart Banking branches, with innovative technologies
and concierge-style client services, expanded in the Philippines, Malaysia and the U.S. Citi’s
Banamex franchise serves close to 21 million customers and has a leading position in consumer
lending, deposit, retirement and mutual fund industries in Mexico. Citi’s wealth management
business provides investment and financial advisory services, including mutual funds, managed
portfolios, stocks, bonds, insurance products and retirement solutions. Citigold® combines
banking with wealth management to deliver exceptional personalized service, special benefits
and preferred access to Citi’s network. Citigold International is dedicated to serving the needs of
globally connected clients by offering access to multicountry financial services. One of the only
global housing lenders, CitiMortgage operates in 29 countries and is committed to helping
clients in allstages of homeownership. With 2 million customers around the world, the business
offers loans for home purchase and refinance transactions with a financing solution for almost
every need. CitiMortgage in the U.S. continued to find solutions that allowed many borrowers to
avoid potential foreclosure through government and other programs such as Citi’s Road to
Recovery. CitiMortgage’s free SureStart® preapproves potential homeowners, allowing them to
establish their price range before shopping for a home. During 2012, CitiMortgage significantly
expanded sales through Citibank branches in the U.S. and select business partners, originating
$58 billion in mortgages. Citi Commercial Bank provides value-added banking service

CITY BANK

Citi® Private Pass® in the U.S. offered Citi credit and debit
card members access to more than 10,000 events across
music, sports, dining and family entertainment

Additional Citi Smart Banking branches, with innovative
technologies and concierge-style client services, opened
in the Philippines, Malaysia and the U.S.

• Cit

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3. Institutional Clients Group
Citi’s Institutional Clients Group serves multinational and local corporations, financial
institutions, governments and privately held businesses in more than 160 countries and
jurisdictions. Our talented professionals build enduring relationships with clients and help them
achieve their goals by offering a full suite of strategic advisory and financing products, services
and solutions.

4. Corporate and Investment Banking
Citi’s Corporate and Investment Banking franchises provide comprehensive relationship
coverage service to ensure the Institutional Clients Group is client driven. With our strong
presence in numerous countries — Citi has been in many markets for more than 100 years — we
leverage our country, sector and product expertise to deliver Citi’s global capabilities to clients
wherever they choose to compete. Citi’s Corporate and Investment Banking client teams are
Organized by industry and by country. Each team comprises two parts: Strategic Coverage
Officers, who focus on mergers and acquisitions and equity and related financing solutions; and
Corporate Bankers, along with their Capital Markets product partners and with support from our
Global Subsidiaries Group, who deliver corporate banking/finance services to global, regional
and local clients. In 2012, Citi served as the trusted advisor for several of the financial markets’
transformational transactions, including co-advisor on Express Scripts’ $34 billion acquisition of
Medco Health Solutions; Citi provided half of the $14 billion bridge loan in connection with the
transaction.

5. Capital Markets Origination
Citi’s Capital Markets Origination business, focused on raising debt and equity, is the first choice
among issuers for their underwriting needs due to an unmatched global footprint, diverse range
of products and track record of executing transactions for its clients amid unprecedented market
conditions. Issuers turn to Citi for inaugural issuances; repeat business; and their largest,
landmark transactions, stronglydemonstrating Citi’s structuring and execution expertise to meet
client needs. In the equity capital markets over the last year, Citi led the market both in terms of
proceeds raised andin innovation in the capital markets. Citi is the clear choicefor debt capital
markets transactions, based on its continuedunderwriting leadership in transactions across a
broad range of currencies and markets, displaying consistent dominance and success in
navigating challenging fixed income conditions.In 2012, Citi led several important transactions
for our clients, including Petrobras’ $7 billion multitranche bond offering the largest-ever
emerging market corporate bond offering inthe international market — and was the only firm to
lead thefive discrete equity transactions for the sale of AIG by the U.S.Treasury.

Corporate Citizenship

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At Citi, we aim to conduct business in a manner that creates value for our clients, shareholders,
people and communities. We reinforce our commitment to Responsible Finance SM and
financial inclusion with innovative business endeavors, with robust philanthropic investments
and by recruiting and supporting a diverse workforce — because being a good corporate citizen
starts with operating responsibly.

1. Financial Inclusion
As a financial institution, Citi embraces the challenge to helpreach the 2.5 billion people in the
world with no access tofinancial services. Through Citi Microfinance, Citi
CommunityDevelopment and the Citi Foundation, we work across Citibusiness lines and with
community groups, governments,institutions and networks to develop innovative, measurableand
replicable initiatives that broaden access for traditionally
underserved communities. By investing capital and expertise,we work with partners to:
• Make it possible for microentrepreneurs and small businessowners to start and sustain their
businesses and to createlivelihoods for their families and neighbors;
• Enable young people to receive advanced education andprepare for productive adulthood;
• Help consumers build their own financial capability bypairing financial education with access
to appropriateproducts and services so they can save, wisely manage theirmoney and weather
setbacks; and
• Finance affordable housing and community infrastructureprojects that create a solid foundation
for financial mobility.

2. Environmental Sustainability
Citi’s commitment to environmental sustainability in our ownoperations and with our clients is
based on three pillars:
• Managing the environmental footprint of our ownglobal operations;
• Evaluating environmental and social risk associated withprojects we finance; and
• Developing business opportunities with our clients toaddress critical environmental issues.
For example, in 2012, Citi provided $100 million in financingto expand SunPower’s residential
solar lease program forU.S. consumers, pioneered transactions in energy efficiencyFinance and
became the first bank in the world to have 200projects receive Leadership in Energy and
EnvironmentalDesign (LEED) certification by the U.S. Green Building Council.We support
solutions that address climate change, waterscarcity, declining biodiversity, human rights and
otherimportant challenges.

3. A Diverse Workforce

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Our efforts would not be possible without the strength of a diverse and skilled global workforce.
Citi’s support helps our people achieve professional growth, make meaningful contributions and
develop pride in their work. The distinct perspectives of our team members bring added value to
our clients and customers, and Citi’s strong tradition of volunteerism ensures that our collective
passion and talents are put to use outside the workplace as well.

Citibank Customer Service Sales Rep Shawn McHellon, a Staff
Sergeant in the U.S. Army Reserves, is one of more than 2,000
Citi employees who have served in the U.S. Armed Forces

.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

MANAGING GLOBAL RISK
1. RISK AGGREGATION AND STRESS TESTING
While Citi’s major risk areas are described individually on the following pages, these risks also
need to be reviewed and managed in conjunction with one another and across the various
businesses. The Chief Risk Officer, as noted above, monitors and controls major risk exposures
and concentrations across the organization. This means aggregating risks, within and across
businesses, as well as subjecting those risks to alternative stress scenarios in order to assess the
potential economic impact they may have on Citigroup. Comprehensive stress tests are in place
across Citi for mark-to-market, available-for-sale and accrual portfolios. These firm-wide stress
reports measure the potential impact to Citi and its component businesses of very large changes
in various types of key risk factors (e.g., interest rates, credit spreads, etc.), as well as the
potential impact of a number of historical and hypothetical forward-looking systemic stress
scenarios. Supplementing the stress testing described above, Citi risk management, working with
input from the businesses and finance, provides periodic updates to senior management on
significant potential areas of concern across Citigroup that can arise from risk concentrations,
financial market participants, and other systemic issues. These areas of focus are intended to be
forward-looking assessments of the potential economic impacts to Citi that may arise from these
exposures. Risk management also reports to the Risk Management and Finance Committee of the
Board of Directors, as well as the full Board of Directors, on these matters. The stress testing and
focus position exercises are a supplement to the standard limit-setting and risk-capital exercises
described below, as these processes incorporate events in the marketplace and within Citi that

CITY BANK
impact the firm’s outlook on the form, magnitude, correlation and timing of identified risks that
may arise. In addition to enhancing awareness and understanding of potential exposures, the
results of these processes then serve as the starting point for developing risk management and
mitigation strategies.

2. RISK CAPITAL
Risk capital is defined as the amount of capital required to absorb potential unexpected economic
losses resulting from extremely severe events over a one-year time period.
• ―Economic losses‖ include losses that are reflected on Citi’s Consolidated Income Statement
and fair value adjustments to the Consolidated Financial Statements, as well as any further
declines in value not captured on the Consolidated Income Statement.
•―Unexpected losses‖ are the difference between potential extremely severe losses and
Citigroup’s expected (average) loss over a one-year time period.
• ―Extremely severe‖ is defined as potential loss at a 99.9% and a 99.97% confidence level,
based on the distribution of observed events and scenario analysis.
The drivers of economic losses are risks which, for Citi, as referenced above, are broadly
categorized as credit risk, market risk and operational risk.
•Credit risk losses primarily result from a borrower’s or counterparty’s
financial or contractual obligations.

inability to meet its

•Market risk losses arise from fluctuations in the market value of trading and non-trading
positions, including the changes in value resulting from fluctuations in rates.
•Operational risk losses result from inadequate or failed internal processes, systems or human
factors or from external events.
These risks, discussed in more detail below, are measured and aggregated within businesses and
across Citigroup to facilitate the understanding of Citi’s exposure to extreme downside events as
described under ―Risk Aggregation and Stress Testing‖ above. The risk capital framework is
reviewed and enhanced on a regular basis in light of market developments and evolving
practices.

3. CREDIT RISK
Credit risk is the potential for financial loss resulting from the failure of a borrower or
counterparty to honor its financial or contractual obligations. Credit risk arises in many of
Citigroup’s business activities, including:

CITY BANK
•Lending;
•

Sales And Trading;

•

Derivatives;

•

Securities Transactions;

•

Settlement; And

•

When Citigroup Acts As An Intermediary.

4. OPERATIONAL RISK
Operational risk is the risk of loss resulting from inadequate or failed internal processes, systems
or human factors, or from external events. It includes the reputation and franchise risk associated
with business practices or market conduct in which Citi is involved. Operational risk is inherent
in Citigroup’s global business activities and, as with other risk types, is managed through an
overall framework designed to balance strong corporate oversight with well-defined independent
risk management. This framework includes:
• recognized ownership of the risk by the businesses
•

oversight by Citi’s independent risk management

•

independent review by Citi’s Audit and Risk Review (ARR)

The goal is to keep operational risk at appropriate levels relative to the characteristics of
Citigroup’s businesses, the markets in which the Company operates its capital and liquidity, and
the competitive, economic and regulatory environment. Notwithstanding these controls,
Citigroup incurs operational losse

Celebrating 200 Years
2012 marked Citi’s 200th anniversary, an opportunity to reflect on two centuries of
enabling progress. We celebrated our rich heritage of innovation in a global advertising

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campaign, thanked our clients at events held around the world and joined together for a Global
Community Day to give back to the communities in which we live and work

Recent Awards & Recognition
Awards in 2013
Global Finance Best Internet Bank Award 2013
Best Consumer Internet Bank in India
Euromoney Awards for Excellence 2013
Best Equity House and Best Investment Bank in India
FinanceAsia Country Awards 2013
Best Foreign Commercial Bank and Best Foreign Investment Bank
Euromoney Foreign Exchange Survey 2013
Ranked #1 amongst banks and corporates
Greenwich Associates 2013 Quality Leader
Large Corporate Banking and Large Corporate Cash Management by Country
Global Finance World�s Best Investment Bank Award 2013
Best Investment Bank in India
The Asian Banker Excellence in International Retail Financial Services Awards 2013
Best Retail Banking Brand Initiative

CITI BANK PROJECT MCOM PART 1

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CITI BANK PROJECT MCOM PART 1