INTERNSHIP REPORTCITI BANK LIMITED

SUBMITTED TO:

Head of internship committee. Department Of Business Administration Bahauddin Zakariya University Multan Sub Campus Sahiwal

SUBMITTED BY:

Muhammad Umair WaqasBBA(Hons.) 6th semesterRoll no: BBS-06

Department Of Business Administration

Bahauddin Zakariya University Multan

Sub Campus Sahiwal

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PREFACE

Banking sector owes a pivotal importance in the economy of any country

through its vibrant functions. That is why being a banking and finance student it

was necessary for me to select a bank for learning purpose so that I can learn

various banking methods and technique not only to enhance my knowledge but

also to implement them on practical grounds

This report is an upshot of my internship experience in Citi Bank, Main Branch,

Garden Town, Lahore . CITI Bank posses an imperative and historical importance

in the banking sector of Pakistan.

My work of these six weeks gave me great practical knowledge banking system

but I strongly belief in a proverb" nothing is perfect" there remains a room of

improvement in every effort for new ideas and more research and knowledge. My

present effort is also a ring of this chain.

I have strong belief that this report will guide and ease the readers to understand

the operations of banking system and more prominently have good knowledge

about CITI BANK, one of the most trusty and Leading banks in Pakistan

Muhammad Umair

Waqas

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ACKNOWLEDGEMENT

I am highly grateful to Almighty Allah who gave me the power to

complete this report. After that without the encouragement and help of my fellows

& my teachers, I perhaps would not been able to write what I have written, it

would be almost an unending list of persons who helped me in one way or other

but then it would be great injustice on my part not to mention the names of those

who provided me the required information and cooperation.

I pay thanks to Mr. Tanvir Bashir “Management & Analytical unit N.A” and

especially “Mr. Abrar Najeeb from the bottom of my heart for their direction &

guidance throughout my project. They not only provided the necessary material &

thoughts, but also encouraged me to do new things that promote a very creative

environment for research. Moreover, they allowed me to expand my expertise in

many areas of banking sector.

A special thanks to Mr. Aamir Ali Mehdi Collection Head of the North Region ,

and also to all related departments and above all my own department of Citi Bank

main branch Lahore who helped me a lot in preparing my report . I am really

thankful to all Heads of the departments in the main branch for their co-operation

during my Internship. At the end I am very thankful to all those persons who

helped me in completing this report.

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EXECUTIVE SUMMARY

Consistent with Citi’s goal of being the most respected financial services

company, and its corporate philosophy which emphasizes shared responsibility to

the communities where we live and work, Citi Pakistan strives to join its partners

in addressing community challenges through honest, constructive and meaningful

dialogue.

In Pakistan, Citi has been, and continues to be energetic in its support for projects

and initiatives that seek to develop the community. Be it through its philanthropic

arm ‘the Citi Foundation,’ or through timely transfer of expertise particularly in

areas related to the advancement of the local financial sector and employee

volunteerism, Citi Pakistan remains committed to making a difference.

In 2007, Citi Pakistan developed industry-leading initiatives and delivered best-

in-class programs, products, and services to our nonprofit partners and the

communities they serve.

In 2008, we will continue to engage in open and honest dialogue with our partners

and to work with them to proactively seek solutions. And in order to fulfill our

global corporate responsibilities, we are committed to providing programs and

solutions that meet the needs of communities across Pakistan.

We take our responsibility towards our community very seriously. Therefore, we

remain committed to fulfilling our corporate responsibilities through initiating

programs that meet the needs of communities across the country.

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TABLE OF CONTENTS

Introduction to city bank

Early history

Citi bank Pakistan

Citi bank’s world

Global consumer bank

Global corporate and investment bank

Milestones

Commercial banking

Corporate banking

Work done by me

Financial analysis

Latest news about Citi bank

Bibliography

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INTRODUCTION TO CITI BANK

Citibank is a major international bank, founded in 1812 as the City Bank

of New York, later First National City Bank of New York. Citibank is now the

consumer and corporate banking arm of financial services giant Citigroup, one of

the largest companies in the world. As of March 2007, it is the largest bank in the

United States by holdings.

Citibank has operations in more than 100 countries and territories around the

world. More than half of its 1,400 offices are in the United States, mostly in the

New York City, Chicago, Miami, and Washington DC metropolitan areas, as well

as in California.

In addition to the standard banking transactions, Citibank offers insurance, credit

card and investment products. Their online services division is among the most

successful in the field, claiming about 15 million users.

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Citigroup Inc. (Citigroup and, together with its subsidiaries, the Company, Citi or

Citigroup) is a global diversified financial services holding company whose

businesses provide a broad range of financial services to consumer and corporate

customers. Citigroup has more than 200 million customer accounts and does

business in more than 100 countries. Citigroup was incorporated in 1988 under

the laws of the State of Delaware. The Company is a bank holding company

within the meaning of the U.S. Bank Holding Company Act of 1956 registered

with, and subject to examination by, the Board of Governors of the Federal

Reserve System (FRB). Some of the Company’s subsidiaries are subject to

supervision and examination by their respective federal and state authorities. At

December 31, 2008, the Company had approximately 134,400 full-time and 4,100

part time employees in the United States and approximately 188,400 full-time

employees outside the United States. During 2008, the Company benefited from

substantial U.S. government financial involvement, including (i) raising an

aggregate of $45 billion through the sale of Citigroup non-voting perpetual,

cumulative preferred stock and warrants to purchase common stock to the U.S.

Department of the Treasury, (ii) entering into a loss-sharing agreement with

various U.S. government entities covering $301 billion of Company assets, and

(iii) issuing $5.75 billion of senior unsecured debt guaranteed by the Federal

Deposit Insurance Corporation (FDIC) (in addition to $26.0 billion of commercial

paper and inter bank deposits of Citigroup’s subsidiaries guaranteed by the FDIC

outstanding at the end of 2008). In connection with these programs and

agreements, Citigroup is required to pay consideration to the U.S. government,

including in the form of dividends on the preferred stock and other fees. In

addition, Citigroup has agreed not to pay common stock dividends in excess of

$0.01 per share per quarter for three years (beginning in 2009) or to repurchase its

common stock without the consent of U.S. government entities. On January 16,

2009, the Company announced realignment, for management and reporting

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purposes, into two businesses: Citicorp, primarily comprised of the Company’s

Global Institutional Bank and the Company’s international regional consumer

banks; and Citi Holdings, primarily comprised of the Company’s brokerage and

asset management business, local consumer finance business, and a special asset

pool. Citigroup believes that the realignment will optimize the Company’s global

businesses for future profitable growth and opportunities and will assist in the

Company’s ongoing efforts to reduce its balance sheet and simplify its

organization. See “Outlook for 2009—Changes to Citi’s Organizational

Structure” on page 7. On February 27, 2009, the Company announced an

exchange offer of its common stock for up to $27.5 billion of its existing

preferred securities and trust preferred securities at a conversion price of $3.25

per share. The U.S. government will match this exchange up to a maximum of

$25 billion of its preferred stock at the same conversion price. These transactions

are intended to increase the Company’s tangible common equity (TCE) and will

require no additional U.S. government investment in Citigroup. The principal

executive offices of the Company are located at 399 Park Avenue, New York,

New York 10022, telephone number 212 559 1000. Additional information about

Citigroup is available on the Company’s Web site at www.citigroup.com.

Citigroup’s recent annual reports on Form 10-K, quarterly reports on Form 10-Q,

current reports on Form 8-K, as well as the

Company’s other filings with the Securities and Exchange Commission

(SEC) are available free of charge through the Company’s Web site by clicking

on the “Investors” page and selecting “All SEC Filings.”

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CITI BANK PAKISTAN

History

Citi’s goal is to be the most respected global financial services company.

As a great institution with a unique and proud history, it aims to play an important

role in the global economy and stands by its principle of always putting its clients’

interests first, acting with the highest level of integrity, respecting local cultures

and taking an active role in the communities it operates in.

Citi has been operating in Pakistan since 1961 and has a highly respected

franchise through its successful delivery of innovative, high-quality banking

products and services to its customers. It has many ‘firsts’ to its credit including

launching the first Credit Card in Pakistan, pioneering Consumer Asset financing

and introducing the first 24x7 call centre.   

Citibank has been at the forefront of the financial sector reform process and has

been the lead bank in taking the Government to international capital markets,

including issues of the 1st Foreign Currency Sukuk, the 1st 30 year US$

Sovereign Bond and the first equity offering in over a decade. It is also the

leading bank in Pakistan for delivering Export Agency and Multilateral financing

and has been instrumental in the development of Pakistan’s market for derivatives

and other treasury products.

Business

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With more than 1,100 employees, Citi Pakistan operates through two

major business lines- the Global Consumer Group and Citi Markets & Banking,

providing a variety of services to more than 200,000 consumer & corporate

clients.Citi has steadily expanded its network over the last two years and now has

23 branches and 39 customer contact points across 10 cities in Pakistan.

Community

In an effort to play an active role in the development of the communities it

operates in, Citi, through its philanthropic arm, the Citi Foundation, continues to

support several initiatives in Pakistan in the areas of Corporate Governance,

Microfinance development and Financial Education. Over the past 4 years a total

of $2,658,000 has been allotted as grants to various social sector partners in

pursuance of this goal.   

CITI BANKS WORLD

Combining some of the most respected brands in the financial services

business -- the Global Consumer Bank and the Global Corporate Investment Bank

- are uniquely positioned to offer a complete array of financial products. Citigroup

operates in a global economic environment which requires the expertise of a true

market leader.

Global Consumer Bank

Citibank Pakistan has demonstrated its ability to identify market needs and

develop products which are unique in concept and fulfill customer requirements.

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The aptitude to develop lifelong relationships while maintaining quality measures

and technological efficiencies has assisted Citibank in becoming a true market

leader.

Powerful distribution networks, electronic channels, myriad of financial products

which cater to customer mix, broad product capabilities - this is what is needed to

succeed in the volatile markets of today. This is what allows us to offer institutes

worldwide the right financial solutions - every time, all the time.

Global Corporate and Investment Bank

Corporate and investment banking clients include corporations at every

stage of development. Catering to the changing needs of corporations and

leveraging on long term relationships, we execute transactions of almost any size,

of every level of complexity, and back them with a wide distribution network.

Every customer is served by a versatile team of relationship managers who ensure

in-depth knowledge of trends and opportunities while synchronizing their

financial activities.

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MILESTONES

Citibank Pakistan's Milestones of the 90's

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The nineties were a decade of domination and leadership for Citibank in

the Pakistani marketplace and the trend continues into the new millennium.

1990 Consumer Bank was established.

1992 Consumer Asset Business is launched.

Car Financing is introduced.

CitiGold Priority Banking is established.

CitiPhone Banking launched.

1994 Citibank Visa Card (Gold and Silver) is launched.

1995 Self-Service Banking launched.

1996 Citibank, N.A. launches its Intranet System in April.

First bank to launch a Photo Credit Card.

1997 Citibank wins over 35 awards under the Euromoney Excellence

Awards. These awards included "Best Bank" and "Best Emerging

Market Bank" for two successive years.

Citibank and IBA develop an MBA program focused on Marketing

of Financial Services (MFS).

Citibank, N.A. pledges a donation to LUMS for their "Students Aid

Program".

Citibank, N.A. in November holds its first ever Car Financing

Dealer conference in Bhurban.

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Citibank, N.A. opens its sixth branch on Shahra-e-Faisal in Karachi

in December. This branch has the first 24-hour zone with ATMs

and CitiPhone booths.

1998 Citibank launched Pakistan's first affinity card known as the

"Citibank-Shaheen Credit Card". 

1999 First foreign bank to launch MasterCard in Pakistan.

Citibank Home Loans is launched.

Car Financing Product Feature enhancement (25% Down Payment,

Free Pre-approved Credit Card with each car).

0% Down Payment product for your second car.

Complaint Tracking System (CTS) launched.

2000 Citibank, N.A. is the first Financial Institution to launch Personal

Loans in Pakistan.

The cards business launches the first ever Co-brand Credit Card in

Pakistan with Caltex.

Dewan Farooq Motors Limited manufacturers of KIA and Hyundai

cars in Pakistan, and Citibank joint label financing program.

Suzuki Car Financing private label Car Financing loan financing

program.

The Paktel-Citibank Credit Card is launched in June.

LG-Citibank Installment Plan is launched in June.

The liabilities business launches the "Karobar Account".

CitiPhone Banking introduces Self Service Banking

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COMMERCIAL BANKING

The Commercial Banking Group offers comprehensive solutions to meet

the needs of small and medium sized companies. Its portfolio management team

is specialized in sectors such as Textiles, Food & Allied, Chemicals, Auto

Vendors, Consumer Durables, Traders, and Educational Institutions, which

constitute Pakistan’s core business environment.

The Citibank brand has been built on our overarching belief that customer trust

and satisfaction are the basis of business success. We are committed to delivering

the best possible products and services and our success is continually

acknowledged through recognition such as Euro week magazine’s award for best

book runner of Asian currency bonds and Finance Asia magazine’s award for

Best Cash Management Bank.

Citibank performs banking activities over 100 countries around the world and

now brings its experience to those companies who think big. Small and medium

sized companies have started finding solutions to their banking needs through the

Commercial Banking Group. You can benefit from Citibank’s support.

In Pakistan, Citi has been, and continues to be energetic in its support for projects

and initiatives that seek to develop the community. Be it through its philanthropic

arm ‘the Citi Foundation,’ or through timely transfer of expertise particularly in

areas related to the advancement of the local financial sector and employee

volunteerism, Citi Pakistan remains committed to making a difference.

In 2007, Citi Pakistan developed industry-leading initiatives and delivered best-

in-class programs, products, and services to our nonprofit partners and the

communities they serve.

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In 2008, we will continue to engage in open and honest dialogue with our partners

and to work with them to proactively seek solutions. And in order to fulfill our

global corporate responsibilities, we are committed to providing programs and

solutions that meet the needs of communities across Pakistan.

We take our responsibility towards our community very seriously. Therefore, we

remain committed to fulfilling our corporate responsibilities through initiating

programs that meet the needs of communities across the country.

Personal Banking

1. Local Currency Deposits

2. Foreign Currency Deposits

3. Credit Cards

4. Debit Cards

5. Home Loans

6. Insurance

1. Local Currency Deposits

1. Rupee Current Account

2. Rupee Savings Account

3. Rupee Citi Ultimate Account

4. Current Account Premium

5. Citibank Premium Profit

6. CitiOne

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2. Foreign Currency Accounts

Citibank Foreign Currency Account provide you financial value and great

transactional convenience, 24 hours a day, 365 days a year. Take a look at their

features and you will know why.

1. Premium FCY Accounts

2. Savings Account

3. Term Deposit

CURRENCIES:

You can open an account in any of the below mentioned currencies.

1. US Dollar.

2. Great Britain Pound Sterling.

3. Euro.

SERVICES OFFERED:

i. Premium FCY Accounts

ii. Savings Account

iii. Term Deposit

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Credit Cards:

1. Gas Stations Spending Limit

2. New Minimum Pmt Policy

3. Citi Mobilink Credit Card

4. Citibank Caltex Credit Card

5. Citibank Clear Card

6. Citibank Gold & Silver Cards

7. E-card

8. Citibank Shaheen –

9. Affinity Credit Card

 Citi Classic & Gold CardsGet a low rate and all the buying power you need

 

       

 Citi Mobilink CardEarn 5 Talk Points to redeem for Free Air Time

 

       

 Citi Caltex CardEarn up to Five Points to redeem for Free Fuel

 

       

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 Citi Clear CardFantastic discounts at your favorite spots

 

Citibank Clear Card

My Choices in life are CLEAR... so is my CARD!

Overview

Here is a Credit Card that not only looks good, but gives you more out of

life. With your Citibank Clear Card, you can look and feel good and stay ahead in

life.

It comes with 3 Free Supplementary Cards and not only Mega Deals! but

exciting discounts from leading brands but also free tickets, Lucky Draw Prizes

and privileges to Fun filled, Hip & Happening Events and Entertainment.

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An extraordinary complimentary package filled with free gifts & leading

incredible discounts on everything from dining to music to travel, & a whole lot

more.

Citibank Gold & Silver Credit Cards

Citibank Gold Credit Card

The Citibank Gold Credit Card is specially designed for you, your

exclusive life style and your special needs. As a Gold Credit Card member you

enjoy a higher Credit Limit throughout the world. If you have a monthly income

of Rs.50,000 or above, and you are a Pakistani citizen, then you are eligible to

apply for a Citibank Gold Credit Card.

Citibank Silver Credit Card

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The Citibank Silver Credit Card brings you the convenience and financial

flexibility you can expect from the World's No. 1 Credit Card. The Silver Card is

a truly international Credit Card offering unmatched features and benefits and

complete peace of mind. If you have a monthly income of Rs.16,000 (Rs 8,000

for selected corporate employees) and are a citizen of Pakistan then you are

eligible to apply for a Citibank Silver Credit Card.

Citibank e-card

Shop with peace of mind on the Internet through your Citibank E-Card!

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As the first Internet Shopping Card in Pakistan, the Citibank E-Card is packed

with unique advantages for shopping on the Internet. This means convenience,

security, fabulous discounts and much more

Citibank Debit Card

Introducing the new Citibank Debit Card

More than an ATM Card with everything you want from a Credit Card

1. Secure:

It is safer than carrying cash, has your signature for easy identification,

and allows you to define your monthly purchase limit. You can even opt

for a Photo Debit Card for added security.

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2. Convenient:

Pay directly from your account for purchases made using your Citibank

Debit Card which is accepted at over 10,000 retail outlets in Pakistan.

3. Global Acceptability:

Citibank Visa Debit Card is accepted at all VISA merchants having

4. electronic terminals, in Pakistan and around the world.

Insurance

1. Health Forever

2. Life Plus

3. Credit Shield Plus

4. Family Protection Plan

5. Secure Wallet Plan

6. Savings Plan

Health Forever

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Life is all about being prepared

Life is all about being prepared. That’s why it is important to plan ahead

for emergency medical costs, so that you stay prepared for any eventuality. Health

forever assures you of the best medical treatment, With Health Forever Citibank

customers get protection against medical costs arising as a result of an accident

or sickness and include life insurance as a built-in feature. Health forever protects

you against these costs for a small premium payment, so you can forget about

what might happen tomorrow and start living today.

Citibank Credit Shield Plus

If the unexpected happens, you are covered.

Credit Shield Plus is now available with Double Indemnity which

provides for an additional payment equal to the outstanding on Citibank Credit

Card to the beneficiary nominated in case of accidental death. Citibank Credit

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Shield Plus gives you total peace of mind by insuring you against unforeseen

emergencies concerning your health and life. Under this cover, if you are unable

to pay the minimum amount because of temporary disability, the underwriter will

pay on your behalf. In the unfortunate event of prolonged critical illness,

permanent disability or even death, the underwriter will pay the entire total

balance on your Citibank Credit Card. In the event of an accidental death, the

underwriter will pay the beneficiary ( appointed by the Card member ) an equal

amount of the outstanding on Citibank Credit Card balance.

Credit Shield Plus offers you peace of mind by helping you pay your Citibank

Card payments when you are not able to, so your loved ones will not be burdened

with these payments.

Citibank Credit Shield Plus provides insurance coverage on occurrence of the

following events

Family Protection Plan

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Express your love...Protect your family's future

Express love for your family by ensuring their lifetime happiness & security. Get

a continued insurance cover for them with the Family Protection Plan by AIG.

The Family Protection Plan is a personal accident insurance policy that provides

coverage on a 24-hour worldwide basis against the following:

Accidental Death

Permanent Total Disability

Accidental Medical Expenses

Premium will be charged on your credit card or debited from your bank account

on easy monthly instalments. The sums insured and monthly premium amount

payable on account of sums insured are stated below:

Benefit Coverage Premium

Accidental Death (AD) & Permanent Total Disability (PTD) Rs. 1,000,000Rs. 165

Medical Reimbursement per month Rs. 25,000

Secure Wallet Plan

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There is a better way to secure your wallet.

Insure your wallet against loss or theft!

Citibank Secure Wallet Plan is the ultimate protection for your wallet. This is the

only insurance plan that covers you against all the following risks:

Loss or theft of your credit card(s)

Loss or theft of your keys and identification papers

Death or disability (due to theft/robbery)

ATM Cash Withdrawal Cover (due to theft/robbery)

Enjoy complete peace of mind while you are shopping, at work or anywhere in

the world, as Secure Wallet Plan provides your wallet with the protection it needs

- securing your credit cards, be they of Citibank or any other bank, keys and

identification papers.

Insurance coverage is available worldwide for 24 hours a day. All financial losses

are underwritten by AIG - the leading insurance company in the world.

Savings Plan

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Your Family’s Hopes Depend on you. Saving Plan ensures it doesn’t end with you!

Why Savings Plan?

This plan offers you a Financial Solution enabling you to spread the financial

outlay of regular premium payments over the term of the policy. It’s a flexible

policy that combines Savings with Life Cover.

Key Benefits of Savings Plan Policy

Lump sum payment of Rs.1,000,000 without any extra charge in the event

of Accidental Death of the parent (life assured).

Guaranteed minimum Annual Yield of 4% on accumulated cash value.

No Medical Checkups required.

Partial Withdrawal & Loan Facility available for key milestones in your

child’s life.

Hedging option available to protect accumulated cash value against

inflation.

Global Access

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Citibank ATMs

At Citibank, our goal has always been to provide you with better facilities

and greater convenience.

1. Access to over 850 machines in 30 cities & over 360,000 ATMs

worldwide

2. Withdraw up to Rs. 160,000 per day.

3. Make a deposit (cash or cheque) – this feature is only available at ATMs

located in Citibank branches.

4. Get US dollars – this feature is only available at ATMs located in Citibank

branches.

5. Get a Mini-Statement.

6. Transfer funds with-in your Citibank accounts

CITIBANK ONLINE (CBOL)

Citibank Online Internet banking gives you the power and convenience to

perform most of your banking activities from the comfort of your home or office,

any time of the day or night. You can:

Check your account details including balances, Credit card balances and

other loan details

Transfer between your accounts with Citibank Pakistan

Transfer money to another Citibank customer in a matter of seconds

Make a Request for demands drafts and local currency manager’s checks

Pay your Utility bills

Order account statements or new cheque books

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CORPORATE BANKING

Citibank Merchant Services

Become a Citibank Merchant

Citibank has the distinct advantage of being the largest acquiring bank in

Pakistan. Currently, we have approximately 5000 merchants.

We provide state of the art merchant services that are distinctively superior to any

other acquiring bank in Pakistan. Citibank offers Electronic Data Capturing

machine for card acceptance at the POS through ORIX network. Additionally,

Citibank gives you the convenience of a back up manual machine, in case of

power failures.

The payment process is graphically presented below:

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                                              Corporate Banking

1. Cash Management

2. Treasury

3. Corporate Bank

4. Financial Institutions

5. Investment Banking

Cash Management

Corporate and financial institutions are constantly faced with practical

problems of handling and collecting cash under various diverse regulatory,

political and cultural environments. How does a company collect its sale proceeds

from remote upcountry regions? Which instruments ensure both quicker receipt of

funds and minimize credit risks? How does a company pay its regular suppliers

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without keeping numerous bank accounts for various locations and then

reconciles them periodically in a highly manual / paper-based environment?

Cash management is a core business for Citibank. Commitment to service quality

and an ability to adopt new technologies are the components of Citibank's Cash

Management strategy. Our experience in the local Pakistani market along with our

ability to provide global solutions enables us to offer a full range of cash

management products and solutions. These products are aimed to help maximize

resources while providing you with value-added solutions to meet your needs.

Citibank Pakistan offers its cash management products and services aimed to

improve the cash flow side of the business and operations. Citibank also focuses

on delivering time critical information to directly impact the business efficiency.

Through its elaborate product offering, Citibank aims to:

Manage the increasing complexity of cross-border and domestic payments

Improve cash flow forecasting under a cost control environment

Limit the exposure to risk associated with growth

Enhance security of the cash flows and reduce the possibilities of fraud

Improve overall working capital flows via adding efficiency to the overall

operations

Treasury

In an exceedingly volatile economic environment, Citibank's Treasury department

emerges as a leader in the local interbank market, as well as the institution of

choice amongst importers and exporters, by providing superior treasury products

to its clients.

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Apart from dealing in Foreign Exchange (FX) and Money Markets, the Interbank

desk participates actively in all Central Bank operations, including T-Bill

Auctions and Open Market Operations. The main products traded on the FX desk

include Ready and Spot Outright Purchases/Sales as well as Swaps, while the

Money Market desk deals primarily in Repo and Reverse Repo transactions.

The Treasury Marketing Unit (TMU) has been designed to serve the needs of

corporate customers. With the recent deregulation in the foreign exchange market

and the resulting increase in volatility, Citibank has tailored its products to cater

to specific customer requirements by providing unmatched service and

customized hedging options.

Corporate Bank

CustomerSatisfaction

The Corporate Banking Group at Citibank in Pakistan is committed to

providing its clients the highest level of service possible. Recognized as a leader

and a trendsetter in the financial markets, the Corporate Bank strives to achieve

Citibank's global objective of customer satisfaction and quality through a well-

diversified product offering and a team of highly professional Relationship

Managers. The Corporate Bank manages a high quality asset portfolio being an

active player in many sectors including textile, sugar, leather, pharmaceutical,

fertilizer, petrochemical, power, aviation, automative, telecommunications, oil

and gas distribution and fast moving consumer goods industries. Companies in

our client base include leading multinational corporations, top tier local corporate

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organizations and public sector entities. Citibank has been instrumental in

bringing together local companies with international players in several Joint

Ventures. This has been possible because of Citibank's Global Relationship and

transnational network.

Financial Institutions

The Premier Correspondent Bank

While systems and technology are an important component of global

banking, our business relies on the strengths of the people dedicated to meeting

your needs. With this in mind, we have organized around what we call

"local/global team" a group of Citibankers who work closely together to provide

you with seamless delivery of financial solutions in your own markets, as well as

globally. This team includes your local relationship managers, account managers

at major financial centers and client services and trade services representatives.

Our goal is to ensure that, when you deal with any Citibank center worldwide,

you receive the same level of personalized, high quality service from individuals

who know you and your business

Investment Banking

CitiGroup world leader in Invest Banking

Citigroup has been recognised as the best arranger of syndicated loans. In

January 2000, IFR recognised Citigroup as the overall "Bank of the Year" and

"Loan House of the Year" for 1999. [link to ssb and Citibank sites] In January

1998, Citibank was awarded Best Arranger of Syndicated Loans by Euroweek.

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Citibank was also voted Best Foreign Bank for 31 of the 69 countries reviewed in

July 1998.

Capital Markets

1. Foreign Capital Market Transactions

Citibank is the leader in international capital market transactions for Pakistani

issuers. Through the development of innovative financial products and the ability

to successfully tap international capital markets, Citibank has raised long term

financing in the form of Global Depository Receipts ("GDRs"), Euro-convertibles

and Floating Rate Notes ("FRN")

2. Local Capital Market Transactions

Citibank has been the leading player in the syndicated loans business. It

has nurtured a diverse local investor base, demonstrated by its unmatched track

record of raising financing in excess of PKR 20 billion for the local market.

Citibank is also one of the leading players in the distribution business, which

involves arranging syndicates for Initial Public Offerings ("IPOs"), rights

issues and distribution of term finance certificates. As a result of its involvement

in these transactions, Citibank has achieved a clear understanding of the various

complex regulatory, legal and business issues, that form an integral part of the

capital markets business.

3. Securitisation

Securitisation offers a strategic funding alternative, since it allows for the

conversion of assets, with strong cash flows, into a capital source. Citibank has

pioneered both local and foreign currency securitisation transactions. It has

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completed local currency transactions worth PKR 2.5 M. Moreover, Citibank

successfully arranged the first ever local currency future receivables securitisation

in Pakistan.

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Work Done By Me

Collection TrainingCollection MIS

Objectives:

To become familiar with the basic collection operations and terminologies

To understand the core operations of collection MIS

To become familiar with the reporting and monitoring of collections

To understand the collection MIS reports and analyze them

COLLECTION MIS COVERAGE

• Covers the North region for Auto, PIL, Card and Recoveries

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• Cities under the coverage area:

– Faisalabad

– Lahore

– Rawalpindi

– Islamabad

– Sialkot

– Gujranwala

– Multan

REPORTS

• Reports made on daily and monthly basis and also per the cycle cut

• Reports made covering the banking products of:

– Autos

– PIL (Personal Loan)

– Credit Cards

• Reports made for collection HR including

– Incentives

– Payrolls

– Resign and hiring status

– Employee performances

– Other HR related issues

DAILY REPORTS

• Delinquency Reports:

[The defaulted credit obligations (unpaid credits) are called delinquency]

For Autos and Personal Loans (Banking):

– 30+ delinquency ( 30 + Exposure/ Total Exposures)

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– 60+ delinquency ( 60 + Exposure/ Total Exposures)

For Credit Cards

– 30+ delinquency ( 30 + Exposure/ Total Exposures)

– 90+ delinquency ( 90 + Exposure/ Total Exposures)

• Was/IS Reports:

Operations of collection process

– Buckets

– Forward Flow [FF]

– Normalization

– Stabilization

– Roll Back

Buckets:

– A measure that helps understands how the portfolio is doing. It

helps measure the degree of delinquency

PIL Lahore, 25th June, 2007.

Productivity Index:

P.I. is a tool that measures collector productivity and performance

It is composed of system measured factors that are combined to

arrive at a single score

P.I. takes in to account the following factors

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• Contact Ratio

• Promise to Pay

• Promise kept ratio

• Money Collected

• Calls per day

• Hours worked

P.I. is used for collector evaluation and incentive preparation

Daily Status [cards]:

– Includes bucket and cycle wise number of accounts

– Balances including EPP (Easy Payment Plan)

Daily Recovery Reports:

– Includes the payment recovered on daily basis from transaction

journals (TJ’s)

– Division by negotiation and legal .

Asset Available for sale [Autos] (AAFS):

– Includes the repossessed vehicles inventories

– Aging report of these vehicles

Salary Compensation:

– Basic salary

– Overtime

– Fuel

– Other incentives

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Charge offs [Cards, Autos, PIL]:

Charge off Portfolio Report – includes all accounts written off

Recovery accounts Report – includes accounts which are recovered

Charge/Recovery Breakup by Balance Report – includes the year

in which the account was charged off and the year in which it was

recovered

No activity Report – includes account detail on which no activity

has taken place

Collection WAS/IS [Cards, Autos, PIL]:

– Calculate incentives according to the Forward Flow and

Normalization by achieving the benchmark

Incentives Report:

– Reports made according to the benchmark achieved over the

previous month of Forward Flow and Normalization

CITY Buckets FE 30 60 90 Over All

KHI

Accounts 8675 1597 920 602 11794

Collectors 20 11 8 8 47

ACR 434 145 115 75 251

FSD

Accounts 3239 583 467 394 4683

Collectors 9 5 4 3 21

ACR 360 117 117 131 223

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LHR

Accounts 8012 1489 914 705 11120

Collectors 18 13 9 11 51

ACR 445 115 102 64 218

RWP/ISD

Accounts 4544 867 606 434 6451

Collectors 10 6 5 6 27

ACR 454 145 121 72 239

North

Accounts 16911 3147 2073 1654 23785

Collectors 40 25 19 21 105

ACR 423 124 110 79 227

CARDS COLLECTION:

To standardize & streamline the process / procedures for the management

of bank card account while these are under collection control.

Collections responsibility will commence from the time an account

becomes current due, delinquent or over limit until it is regularized by

means of payment or its closure and full payment is collected.

GOALS OF THE COLLECTION:

PROGRAM

The primary goal of the collections process is to obtain payments

promptly while minimizing collection expense and write-off cost as well

as maintaining customers` goodwill by a high standard of service.

The secondary goal of collections is to protect the losses of the bank. This

can be achieved by identifying early indications of delinquent customers

and thus minimizing losses.

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ACCOUNT CATEGORIES IN COLLECTION

a)  NONSTARTER ACCOUNTS.

Is one in which customer does not pay on the first billing date.

b)      There are two types of non-starter accounts with spending and without

spending. With spending is high risk account is one in which customer delay the

pmt on the first billing date and without spending is one in which card is not

used just annual membership fee is charged & if the card moves to 75 dpd

collection will fwd the referral for reversal.

c)      OVERLIMIT ACCOUNTS.

An account is considered over limit when the outstanding balance exceeds

the limit by RS 1 .In over limit high risks account with 10% over limit will be

blocked by H & 20% with block I & above 20% is block with J.

d)      DELINQUENT ACCOUNTS.

An account is considered delinquent in CACS when the minimum amount

due is not paid until the cycle cut date.

e) CURRENT DUE BUT NOT DELINQUENT .

An account is classified as current due but not delinquent in CACS if the

current minimum amount due is not paid ….these account appear in CACS

after due date & called (preemptive).

Management Information System

The MIS reports generated are utilized to evaluate and report performance

achievement of the Collection Department, team or an individual. These reports

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are based on each CACS location, according to product for individual billing

cycles as they are cut.

The MIS reports are thus tools for the Collections Department and the

management for analyzing our present position and planning future Collection

strategies.

a. MIS reports are produced based on CARDPAC and CACS data,

downloaded on daily weekly or monthly basis.

b. MIS reports are useful tools for Supervisors and Managers for monitoring

and analysis purposes. For example, Supervisors and Managers can find

out the reason for a particularly high delinquency in a cycle or region by

looking at flows from one bucket to another or due to higher balance in

particular buckets.

c. The performance of an individual CO or a team looking after a billing

cycle can also be judged by reviewing at both the lag/flow as well as the

collector performance report.

d. The number of accounts appearing in each individual bucket helps in

reviewing the collector capacity of each region.

Collection MIS Reports

CACS generates reports on a daily/weekly or monthly basis. Some of

these reports pertain to system activities and maintenance whiles other help

towards the collection efforts and results. Some of these reports are:

Cycle Cut Report

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This report is a detailed summary of each billing cycle by each billing

cycle by region, indicating the cycle delinquency as well as the net flow analysis

in comparison to the past months.

Sum of Cycle Report

This report is summary of the delinquency of each billing cycle as well as

the overall delinquency of each product and the total portfolio.

Productivity/Effectiveness Report

This report shows the results of individual efforts by CO while giving

information like:

1. Hours worked

2. Attempts

3. Calls

4. Contacts

5. Promise taken

6. Promises kept%

7. Amount collected.

These reports along with the results of decline or rise in delinquency of a cycle

within a region help to track team performance for a particular day and month to

date. These reports are also available for respective functional areas.

CACS Aging

This report indicates normalization, roll backs, stabilization and forward

flows of respective cycle during the month. By looking this report Managers can

easily monitor any individual’s performance for that month. This report triggers

the exact reasons of any increase/decrease in delq /flows.

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Daily MIS Monitoring

All Collection shops prepare daily delinquent/flows monitoring MIS. It

helps Managers to evaluate shop’s current status so that they can easily strategies

their collection efforts as per requirement.

Performance Evaluation

Collections evaluate performance of each and every CO/FC the defined

criteria monthly basis.

1. Calls/CO/day

2. Contact ratio

3. PTP ratio

4. PK ration

5. Normalization ratio

6. Forward ratio

All shops will display the monthly evaluation MIS on the notice board so

that each and every Co can see his/her performance. This process will create a

healthy competition among the collection staff and should form the basis of

counseling by Supervisors/Managers.

Daily PI Monitoring

This MIS helps the Supervisor to evaluate each CO’s productivity on daily

or MTD basis. PI (Productivity Index) is an established measure to monitor FE

productivity which is calculated as per following method.

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MTD

a) Is Month to date performance

Forward Flows

b) The accounts within each delinquency bucket which move to next

bucket during the course of one reporting period.

GCWO (Gross Credit Write Off)

GCL (Gross Credit Loss)

Recoveries

The amount recovered from write off portfolio is called recovery

NCL (Net Credit Loss)

GCL - Recovery

Normalization

A delinquent account which was cured back to current bucket.

Stabilization

A delinquent remains in the same bucket due to payment of one bucket

minimum amount.

Lag/flow

Includes summary of each billing cycle by region indicating the cycle deq

as well as the net flow analysis in comparison with the past months

DAILY CARD WAS/IS REPORT

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The report is about the collection of the card status

Was and is represent that the standing of the amounts that were due

yesterday and today

There must ber appositive percentage change to justify the

correction of was and is report

If there will be any negative percentage that means your report is

incorrect

Cities covered in this report are

LHR,FSD,RWD,MUL,KHI,HYD,GUJ and SLK

Buckets are current, past due ,30,60,90,120 and 150

The formula of bucket is 1-29 days = bucket 30

The column of grand total represents that how much amount is still

to be collected from the customer

DAILY CARD RECOVERY REPORT

The purpose of the report is to have a look on the figures that how much

amount has been recovered in the whole month from cards.

The figures are collected on the daily basis

Managers require these amounts to see how well their recovery

department is performing

The report shows the figures of Pakistan

GCL TRACKER

The report is about the GCL (Gross credit loss) of the bank across

Pakistan

The products covered in this report are autos and PIL

The amounts in these heads describes the figures in million dollars

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For each month the dollar rate is provided by the financial analytical

department to convert these figures in PKR

The conversion of figures is required to find out the exact GCL in Pak

rupees.

DELINQUENCIES REPORT

The report shows the number of accounts that are still delinquent(to be

recovered) in all the regions

The report gives the picture about the number of accounts in each

bucket

As well as also gives a clear picture about the amounts pending

The report is very much important for the managers because whole

working of the day and for the month is dependent on this report

Any error in this report will result a great change in the projections of

the month

The report describes the delinquent accounts for 30+ and 60+ days

PRINCIPAL RECOVERY

The most important report for the heads of CITI is principal recovery

The report describes that how much amount has been recovered in the

products AUTO and PIL across Pakistan

This recovery has been made from the customers who default from the

bank

This is the loss of the bank but when the recovery is made the bank lessens

its loss

That is why the report bears heavy importance

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The amounts are in million dollars again these amounts are converted into

PKR by the exchange rate of the dollars that has been provided by the

financial analytical department

The report is designed in such a way that it reflects the heads about three

months comparison of the figures

That makes them easy to analyze and understand what is the present

scenario and where we were standing on the same day in the last two

months

The report also shows the figures of expenses that has been occurred

during the recovery of thee amounts

As well as also tells us about the amounts that has been recovered by the

outsource department of city

OTHER RESPONSIBILITIES

My other responsibilities are of HR coordinator of the North region.

To prepare the salary of about 550 staff members that are under the head

of North region

To prepare the incentive of these 550 staff members on monthly basis

To prepare the salary of the Regional Managers and Managers on monthly

basis

To prepare the incentive of the above mentioned Managers on monthly

basis

My other responsibility is to complete the hiring document of the new

staff members and to coordinate with HR Head Karachi for their hiring

Completing the document of the resigning staff is also under my JD

Moreover maintaining the record of leave status of the permanent staff

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The major responsibility of mine is to conduct different sort of trainings in

the Main branch for Collection staff

Before conducting that training the training Managers trained me for such

sort of training(some results and training certificates are attached)

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Financial analysis

2008 FINANCIAL RESULTS

We reported a loss of $27.7 billion in 2008. This unacceptable result

reflects the impact of a weak economy and a lack of market liquidity on various

assets we carried into this downturn. As previously disclosed our results included

$32 billion of revenue mark-to-market losses on assets in our Securities and

Banking business. In addition, like all major banks, we are experiencing elevated

credit losses as our customers struggle to repay loans. As credit quality

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deteriorated, we added to loan loss reserves. Our 2008 results reflect a net build of

$14.7 billion to our loan loss reserves. We ended the year with total loan loss

reserves of $30 billion. Our financial results this year were very disappointing.

However, away from these losses, our core franchises are performing well and our

customers remain active and engaged with Citi around the world. We will build

on this to achieve our highest priority—returning Citi to profitability.

RESTRUCTURING CITI

We accelerated the second stage of our drive for value creation—

Restructuring Citi—by realigning Citi into two operating units—Citicorp and Citi

Holdings. This structure highlights the value of our core franchise and reflects the

rapid and dramatic changes in funding markets, operating models, and client

needs. The new structure simplifies Citi, and sets out a clear path to profitability

and value creation. In the new structure, Citicorp is our global bank for businesses

and consumers. Citicorp consists of the Global Institutional Bank, which includes

Global Transaction Services, Corporate and Investment Bank, Citi Private Bank,

and the Retail Bank. The Retail Bank includes regional consumer and commercial

banking and card franchises around the world. Approximately two thirds of

Citicorp’s balance sheet is deposit-funded. It has relatively low-risk, high-return

assets and it operates in the fastest-growing areas of the world. On a stand-alone

basis, I believe there is no stronger financial services firm than Citicorp. Citi

Holdings includes some great businesses that have strong market positions but are

not central to our core operating strategy. Citi Holdings is made up of brokerage

and asset management; consumer finance, mortgage loans, and private label credit

cards; and a special asset pool. Approximately one third of our headcount

supports Citi Holdings and it includes the $301 billion of assets covered by our

loss-sharing agreement with the U.S. government. We will continue to manage

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these businesses and assets to ensure we maximize their value to our shareholders

and will be alert to sensible dispositions or combinations. With lower risk and a

streamlined set of businesses, we expect Citicorp to be a high-return and high

growth business. With Citi Holdings, we will be able to tighten our focus on risk

management and credit quality. And, with the right structure and management in

place, we’ll be able to turn our attention to the third stage of our growth strategy:

Maximizing Citi.

2009 AND BEYOND

The best way to make good on our commitments to investors, clients,

policymakers, employees, and citizens is to return Citi to profitability as soon as

possible. As a Citi shareholder, you have experienced an extremely disappointing

year and I know that any return to profitability is long overdue. You should know

that we are doing everything in our power to accelerate that return. We recognize

that industry profitability may continue to be affected by asset price volatility and

credit deterioration. But we also see that the policies implemented thus far are

setting the stage for recovery.

We enter 2009 with the drivers of profitability in place. Our funding, risk capital,

and underlying revenue levels are strong. Our expenses and risks have been

reduced. We are taking control of what is within our control. Although 2009 will

likely remain a challenging year—particularly in terms of credit costs—we

believe that as the economic environment begins to recover, as it inevitably will,

Citi will be well positioned to create the kind of shareholder value of which we all

know Citi is capable and which you should reasonably expect

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2008 IN SUMMARY

Citigroup reported a $32.1 billion loss from continuing operations ($6.42

per share) for 2008. The results were impacted by continued losses related to the

disruption in the fixed income markets, higher consumer credit costs, and a

deepening of the global economic slowdown. The net loss of $27.7 billion ($5.59

per share) in 2008 includes the results and sales of the Company’s German retail

banking operations and Citi Capital (which were reflected as discontinued

operations), as well as a $9.568 billion Goodwill impairment charge based on the

results of its fourth quarter of 2008 goodwill impairment testing. The goodwill

impairment charge was recorded in North America Consumer Banking, Latin

America Consumer banking and EMEA Consumer Banking. During 2008, the

Company benefited from substantial U.S. government financial involvement,

including (i) raising an aggregate $45 billion in capital through the sale of

Citigroup non-voting perpetual, cumulative preferred stock and warrants to

purchase common stock to the U.S. Department of the Treasury (UST), (ii)

entering into a loss-sharing agreement with various U.S. government entities

covering $301 billion of Company assets, and (iii) issuing $5.75 billion of senior

unsecured debt guaranteed by the Federal Deposit Insurance Corporation (FDIC)

(in addition to $26.0 billion of commercial paper and interbank deposits of

Citigroup’s subsidiaries guaranteed by the FDIC outstanding as of December 31,

2008). In connection with these programs and agreements, Citigroup is required

to pay consideration to the U.S. government, including in the form of dividends

on the preferred stock and other fees. In addition, Citigroup has agreed not to pay

common stock dividends in excess of $0.01 per share per quarter for three years

(beginning in 2009) or to repurchase its common stock without the consent of

U.S. government entities. In addition to the equity issuances to the UST under

TARP, Citigroup raised $32 billion of capital in private and public offerings

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during 2008. In addition, on January 16, 2009, the Company announced a

realignment, for management and reporting purposes, into two businesses:

Citicorp, primarily comprised of the Company’s Global Institutional Bank and the

Company’s regional consumer banks; and Citi Holdings, primarily comprised of

the Company’s brokerage and asset management business, local consumer finance

business, and a special asset pool. Citigroup believes that the realignment will

optimize the Company’s global businesses for future profitable growth and

opportunities and will assist in the Company’s ongoing efforts to reduce its

balance sheet and simplify its organization. On February 27, 2009, the Company

announced an exchange offer of its common stock for up to $27.5 billion of its

existing preferred securities and trust preferred securities at a conversion price of

$3.25 per share. The U.S. government will match this exchange up to a maximum

of $25 billion of its preferred stock at the same conversion price. These

transactions are intended to increase the Company’s tangible common equity

(TCE) and will require no additional U.S. government investment in Citigroup.

During 2008, the Company also completed 19 strategic divestitures which were

designed to strengthen our franchises. Revenues of $52.8 billion decreased 33%

from 2007, primarily driven by significantly lower revenues in ICG due to write-

downs related to subprime CDOs and leveraged lending and other fixed income

exposures. Revenues outside of ICG declined 6%. The Company’s revenues

outside North America declined 4% from 2007. Net interest revenue grew 18%

from 2007, reflecting the lower cost of funds, as well as lower rates outside the

U.S. The lower cost of funds more than offset the decrease in the asset yields

during the year. Net interest margin in 2008 was 3.06%, up 65 basis points from

2007. Excluding the goodwill impairment charge, expenses have declined for four

consecutive quarters, due to lower incentive compensation accruals and continued

benefits from re-engineering efforts. Headcount was down 52,000 from December

31, 2007. The Company’s equity capital base and trust preferred securities were

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$165.5billion at December 31, 2008. Stockholders’ equity increased by $28.2

billion during 2008 to $141.6 billion, which was affected by capital issuances

discussed above, and the distribution of $7.6 billion in dividends to common and

preferred shareholders. Citigroup maintained its “well capitalized” position with a

Tier 1 Capital Ratio of 11.92% at December 31, 2008. Total credit costs of $33.3

billion included NCLs of $19.0 billion, up from $9.9 billion in 2007, and a net

build of $14.3 billion to credit reserves. The build consisted of $10.8 billion in

Consumer ($8.2 billion in North America and $2.6 billion in regions outside

North America), $3.3 billion in ICG and $249 million in GWM. The Consumer

loan loss rate was 3.75%, a 149 basis-point increase from the fourth quarter of

2007. Corporate cash-basis loans were $9.6 billion at December 31, 2008, an

increase of $7.8 billion from year-ago levels. This increase is primarily

attributable to the transfer of non-accrual loans from the held-for-sale portfolio to

the held-for-investment portfolio during the fourth quarter of 2008. The allowance

for loan losses totaled $29.6 billion at December 31, 2008, a coverage ratio of

4.27% of total loans. The effective tax rate (benefit) of (39)% in 2008 primarily

resulted from the pretax losses in the Company’s Securities and Banking business

taxed in the U.S. (the U.S. is a higher tax-rate jurisdiction). In addition, the tax

benefits of permanent differences, including the tax benefit for not providing U.S.

income taxes on the earnings of certain foreign subsidiaries that are indefinitely

invested, favorably affected the Company’s effective tax rate. At December 31,

2008, the Company had increased its structural liquidity (equity, long-term debt

and deposits) as a percentage of assets from 62% at December 31, 2007 to

approximately 66% at December 31, 2008. Citigroup has continued its

deleveraging, reducing total assets from $2,187 billion at December 31, 2007 to

$1,938 billion at December 31, 2008. At December 31, 2008, the maturity profile

of Citigroup’s senior long-term unsecured borrowings had a weighted average

maturity of seven years. Citigroup also reduced its commercial paper program

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from $35 billion at December 31, 2007 to $29 billion at December 31, 2008.

Recently, Robert Rubin, Sir Win Bischoff and Roberto Hernández Ramirez

announced they would not stand for re-election at Citigroup’s 2009 Annual

Meeting of Stockholders. On February 23, 2009, Richard Parsons became the

Chairman of the Company.

OUTLOOK FOR 2009

We enter the challenging environment of 2009 after a difficult and

disappointing 2008. While numerous risks remain, the Company has made

progress in decreasing the risks arising from its balance sheet and building capital

to generate future earnings. As examples, and as more fully disclosed throughout

this MD&A:

• Our total allowance for loan losses was $29.6 billion at December 31, 2008;

• As part of the decreasing of risks, we completed the loss-sharing agreement with

various U.S. government entities, which provides significant downside protection

against losses on $301 billion of assets; and

• We have reclassified certain assets from mark-to-market classification to held-to

maturity which could provide some reduction in earnings volatility.

Changes to Citi’s Organizational Structure

On January 16, 2009, given the economic and market environment, Citi

announced the acceleration of the implementation of its strategy to focus on its

core businesses. As a result of its proposed realignment, Citigroup will be

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comprised of two businesses, Citicorp and Citi Holdings. Citigroup believes that

the realignment will optimize the Company’s global businesses for future

profitable growth and opportunities and will assist in the Company’s ongoing

efforts to reduce its balance sheet and simplify its organization. Citigroup’s plan

is to transition to this structure as quickly as possible, taking into account the

interests of all stakeholders, including customers and clients, debt holders,

preferred and common stockholders, employees, and the communities it serves.

The Company recognizes that major legal vehicle restructuring changes such as

the realignment will require regulatory approvals and the resolution of tax and

other issues. Citigroup has, however, managed the Company consistent with this

structure since February 2009 and management reporting will reflect this structure

starting with the second quarter of 2009.

Citicorp

Citicorp, a global bank for businesses and consumers, will have two

primary underlying businesses: the Global Institutional Bank serving corporate,

institutional, public sector and private banking clients; and Citigroup’s regional

consumer banks which provide traditional banking services, including branded

cards as well as small and middle market commercial banking. It is anticipated

that Citicorp will focus on its unique competitive advantage of having a strong

presence in the fastest-growing areas of the world.

CitiHoldings

Citi Holdings will have three primary segments: brokerage and asset

management, local consumer finance and a special asset pool. Citigroup continues

to believe that many of Citi Holdings’ businesses are attractive long-term

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businesses with strong market positions, but they do not sufficiently enhance the

capabilities of Citigroup’s core businesses. Citi Holdings will continue to focus on

risk management and credit quality as it seeks to build value in these businesses.

Goals in 2009

• Returning to profitability

• Risk reduction and mitigation

• Implementation and management of TARP and TARP funds

• Expense reduction

• Headcount reduction

• Asset reduction

• Implementing organizational changes/management realignment

Economic Environment

Citigroup’s financial results are closely tied to the global economic

environment. The global markets are experiencing the impact of a significant U.S.

and international economic downturn. This is restricting the Company’s growth

opportunities both domestically and internationally. Should economic conditions

not improve or further deteriorate, the Company could experience continued

revenue pressure across its businesses and increased costs of credit. In addition,

continuing deterioration of the U.S. or global real estate markets could adversely

impact the Company’s revenues, including additional losses on subprime and

other exposures, additional losses on leveraged loan commitments and cost of

credit, including increased credit losses in mortgage-related and other activities.

Further adverse rating actions by credit rating agencies in respect of structured

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credit products or other credit-related exposures, or of monocline insurers, could

result in revenue reductions in those or similar securities.

Credit Costs

We believe that credit costs are expected to increase during 2009.

• As we go into the first half of 2009, we expect NCLs for our consumer

portfolios could be $1 billion to $2 billion higher each quarter when compared to

the NCLs in the third quarter of 2008. At this time we believe that we will be at

the higher end of this range.

• Our assumption on unemployment is that it could peak as late as the first half of

2010. This implies that we will most likely continue to add to our Consumer

reserves until the end of 2009.

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• Corporate credit is inherently difficult to predict given the economic

environment. It is expected that corporate loan default rates will increase. As

such, we expect to continue to add to reserves and will likely see higher Corporate

NCLs.

2008 vs. 2007

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Net interest revenue increased 16%. Global Cards growth of 13% was

driven by 12% growth in purchase sales and 18% growth in average loans.

Consumer Banking, excluding Consumer Finance Japan (CFJ), grew by 10%,

driven by growth of 6% in average loans and 4% growth in deposits. Transaction

Services exhibited strong growth across all products resulting in 19% growth.

S&B grew 90%, or $966 million, reflecting better spreads during the year and

higher dividend revenue. Growth was also positively impacted by FX translation,

acquisitions and portfolio purchases. Non-interest revenue decreased 43% as S&B

continued to be impacted by market volatility and declining valuations. Outside of

S&B, non-interest revenue decreased 2% due to the absence of gain on Visa

shares compared to the prior year, in Transaction Services and Global Cards.

Excluding this, revenue was flat with strong growth in Global Cards, Transaction

Services and GWM, offset by lower Investment Sales in Consumer Banking and

GWM. Results included a $31 million gain on the sale of DCI, partially offset by a

$21 million gain on the sale of MasterCard shares in the prior year. Growth was

also negatively impacted by foreign exchange, acquisitions and portfolio

purchases. Operating expenses increased 19% reflecting the impact of

acquisitions, a $937 million Nikko Asset Management intangible impairment

charge, theimpact of the strengthening of local currencies and restructuring/

repositioning charges, partially offset by the benefits of reengineering efforts.

Provisions for loan losses and for benefits and claims increased 51% primarily

driven by a $574 million incremental pretax charge to increase loan loss reserves,

increased credit costs in India, acquisitions and portfolio growth. Taxes included a

$994 million tax benefit related to the legal vehicle restructuring of the CFJ

operations.

Asia Excluding CFJ

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As disclosed in the table above, NIR excluding CFJ increased 25% during 2008.

Operating expenses excluding CFJ increased 22% during 2008 and Net Income

excluding CFJ decreased 71%.

FORWARD-LOOKING STATEMENTS

These forward-looking statements are based on management’s current

expectations and involve external risks and uncertainties including, but not

limited. Other risks and uncertainties disclosed herein include, but are not limited

to:

• Levels of activity and volatility in the capital markets;

• Global economic conditions, including the level of interest rates, the credit

environment, unemployment rates, and political and regulatory developments in

the U.S. and around the world;

• The impact the elimination of QSPEs from the guidance on SFAS 140 may have

on Citigroup’s consolidated financial statements;

• The difficult environment surrounding the Japan Consumer Finance business

and the way courts will view grey zone claims;

• The effect continued deterioration in the U.S. housing market could have on the

Consumer Banking business’ cost of credit in the first mortgage and second

mortgage portfolios;

• The effect of default rates on the cost of credit;

• The dividending capabilities of Citigroup’s subsidiaries;

• The effect that possible amendments to, and interpretations of, risk-based capital

guidelines and reporting instructions might have on Citigroup’sreported capital

ratios and net risk-weighted assets;

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• The possibility of further adverse rating actions by credit rating agencies in

respect of structured credit products or other credit-related exposures or of

monoline insurers;

• The effectiveness of the hedging products used in connection with Securities

and Banking’s trading positions in U.S. subprime RMBS and related products,

including ABS CDOs, in the event of material changes in market conditions; and

• The outcome of legal, regulatory and other proceedings

Comparison of Five-Year Cumulative Total Return

The following graph compares the cumulative total return on Citigroup’s

common stock with the S&P 500 Index and the S&P Financial Index over the

five-year period extending through December 31, 2008. The graph assumes that

$100 was invested on December 31, 2003 in Citigroup’s common stock, the S&P

500 Index and the S&P Financial Index and that all dividends were reinvested.

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Latest news about Citi Bank

Citi Pakistan secures top honors

Citi Pakistan that its trade capabilities received top honors with a total of

19 awards in Euro money’s Trade Finance magazine fifth annual client poll of the

world's best trade banks. Citi was named 'Best Trade Services

Bank' and 'Best short-term Finance Bank' once again this year. Citi was also

named 'Best Export Finance Arranger,' 'Best Forfeiting Institution' and 'Best

Supply Chain Bank' in the highly commended category. Several regional and

country awards were received as well including 'Best Trade Finance Bank in Asia'

for the fourth year in a row. In the countries, 'Best' awards were given to

Indonesia, Korea, Vietnam, Taiwan and Hong Kong and "Highly Commended”

nods went to China, India, Malaysia, Thailand and Singapore, totaling 10

countries wins overall.

Central and Eastern Europe again received the "Highly Commended" award for

Best Trade Finance Bank. And, first time winners, Pakistan and Russia were

awarded "Highly Commended" designations for Best International Trade Bank. ,

Salman Riaz Head of Global' Transactions Services (GTS) at Citi Pakistan said,

"The recognition Citi Pakistan has received in this year's Trade Finance poll

underscores our commitment to our clients and is a reflection of the trust and

confidence they place in us, a fact that makes us very proud indeed." These results

are based on a readers' poll and online voting through Trade Finance's website,

and have become an industry benchmark for institutions in gauging their value

proposition. This year's ballots saw over 12,000 entries throughout the world.

ineffectiveness resulting from the hedging relationship is recorded in current

earnings. Alternatively, an economic hedge, which does not meet the SFAS 133

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hedging criteria, would involve only recording the derivative at fair value on the

balance sheet, with its associated changes in fair value recorded in earnings.

CONCLUSION

In such challenging times it is worth taking stock of what is truly valuable

about Citi. I’m convinced there are some enduring truths that will stand the test of

the coming years.

The first is that our competitive advantage will remain our global presence, which

is rich both in history and in client relationships. At the heart of Citi is an

irreplaceable franchise built over nearly 200 years, with more than 200 million

customer accounts in over 100 countries. Through this unique global network, we

enable people to reach out and to work together across the world. Second, we will

continue to build on our rich legacy of innovation: innovation to ensure that we

can address the needs of a highly mobile population that is increasingly urban and

international in outlook; innovation to help people and companies work more

collaboratively across multiple networks and time zones; innovation to facilitate

new ways of thinking about money and the role it plays in everyday life and

business.

Third, we will remain determined to build a culture of meritocracy where talent is

recognized and rewarded with opportunity, where each employee has a chance to

achieve his/her potential, and where the best do better. Fourth, we’ll continue to

make a difference in the communities where we work and live.

In November, 50,000 Citi colleagues and friends came together in 550 cities

around the world in a single day to repair schools, deliver food, and help people in

need. With so many people now feeling pressure, Citi is more devoted than ever

to improving society and the environment in the communities where we work

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through our philanthropy, volunteerism, public policy engagement, and our core

business activities. Every Citi employee is acutely aware of the challenges ahead.

We all know people whose economic struggles are unprecedented and

overwhelming. It is our commitment to Citi’s customers, shareholders, and

employees to create solutions that mitigate the impact of these difficult times.

With the top team in the industry, we will succeed

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Bibliography

http://www.citi.com/pakistan.www.google.comwww.citibank.com

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REFERENCES

Mr. Amir Ali Mehdi (Collection Head, North)Mr. Tanveer Bashir (Management & Analytical unit, Lahore)Mr. Abrar Najeeb (Management & Analytical unit, Lahore)Miss Habiba Butt (HR coordinator Lahore)Mr. Kashif Salahuddin (Manager AUTOS Collection)Mr. Numan (Shop Coordinator)Mr. Shehbaz (Shop Coordinator)

1. FINANCIAL DEPARTMENT CITI BANK KARACHI2. HUMAN RESOURCE DEPARTMENT CITI BANK KARACHI3. MANAGEMENT AND ANALYTICAL UNIT LAHORE MAIN

BRANCH4. GARDEN TOWN CITI BANK BRANCH5. COLLECTION DEPARTMENT LAHORE

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