CITIBANK Citi Never Sleeps

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Detail about CITIBANK

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never sleeps

Titans team (Manisha, Sandeep, Ashish,Joheb & Javed)

HistoryFounded in 1812 as the City Bank of New York, by Samuel Osgood In 1865, joined the new US national banking system and became the National Bank Of New York . By 1894 the company had become the largest bank of New York

Main Events in History1st contributor to the Federal Reserve Bank of New York in 1896 By 1919, 1st US bank to have $ 1 billion in assets By 1930 100 branches in 23 countries outside US 1st US Bank to have introduced Automated Teller Machines (ATM) in 1970

Company Overview

Found in more than 100 countries worldwide, Citibank, a part of Citigroup, delivers a selection of services including banking, lending, and investment services to individual customers and businesses. With over 200 million customer accounts, it has become a key player in the financial area, servicing over 88% of the Fortune 50 companies in the world.

Citibank Headquarters

399 Park Avenue, New York City United States

Key Employees

Sir Will Bischoff Chairman

Lewis Kaden - Vice Chairman

Gary Crittenden CFO

Vikram Pandit CEO

Mission and Goals

To offer innovative approaches in this emerging competitive market To offer a wide range of investment banking products to help identify and achieve financial objectives of customers To seize opportunities to build capabilities and share in both wellwellestablished and emerging markets To strengthen strategic presence in key markets To be a leader in electronic payments and commerce on the Web by introducing new internet-based applications to customers internetTo continue building capability on the internet through the leadership of the new Internet Operating Group

Citibank Offers

Banking services Credit cards Loans Investments Planning/ Retirement solutions Mortgages Asset Management Insurance Business insurance Small business services Corporate/Institutional Services Private Banking

On the whole 3 major areas of business

1. The Global Consumer services include credit cards, banking services, insurance and loans. 2. The Corporate and Investment Banking provides advisory and transaction services to government, institutions and corporate clients 3. The Global Wealth Management provides a top-tier money management service catering to the topinstitutional and private clients

OwnerShip Of Citibank 36.0 % - United States Government 11.1 % - Government of Singapore Investment Corporation 6.0 % - Kuwait Investment Authority 4.9 % - Abu Dhabi Investment Authority 4.3 % - Kingdom Holding Company Saudi Arabia

Citibank in Asian Region

Company has extensive operations in Asia covering- China, Hong coveringKong, India, Japan, Philippines & Singapore. Citibank focuses on substantial resources on growth in emerging markets Company offers 2 transaction banking businesses in these area 1) EBusiness ,eCommerce, cash management & electronic banking business 2) Citibank global securities services

Recently the Net Profit of its Indian operations rose 20.45 % to Rs. 2,173 crore during 2008-09 2008-

Major Competitors

Strengths

Very strong position in US and European market. Innovative product offering, e.g. launch of new schemes and offers in relation to products Citibank being the giant subsidiary of Citigroup Financial, has a strong hold in the market

Weaknesses Citibank, recently, has lost its image due to credit card theft, losses into recession and sacking of the employees Most of its online operations are present only in US and European markets, not in Asian markets

Opportunities

Increasing focus on Asian & Central Eastern European. Online Presence

Threats Weak Economy affected Market Condition Foreign Exchange fluctuations

Few of the problems that Citibank faced in its course. courseCitibank faced various problems in its journey to becoming one of the largest banks in the world.

e.g.Setting up in Latin American countries like Columbia, where foreign investment option is pretty vague. Somehow, it could cut its way through and got itself established in Columbia. It also faced few problems in setting up in china due to its strictly regulated markets. Foreign banks were kept under special vigilance in china. But again, it wasn t so tough to capture its market and compete with the major international bank HSBC in china. Lately, a BPO fraud in India cost Citibank a lot. It somehow lost trust of the credit card holders. One of the reasons for it being a tarnished brand name . Citibank, however, denied the charges and made sure everything worked out fine at their front.

RecessionHowever, the biggest of them all was pretty recent, when recession hit the US and European economy, where the presence of Citibank is immense.

2008Citibank reportedly was ordered to repay $18 million in August, 2008 On Nov 17, 2008, Citibank declared it will cut 52000 jobs, far more than had been expected It was loosing approximately $8-11 million every day, and it went on for several days Under these circumstances Citibank shares fell more than 6% CONTINUED .

CONTINUED

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Citibank shares continued to fall and losses kept on mounting up US stock exchange fell by more than 200 points the day Citibank declared job cuts Economies like Japan, Singapore were already in recession by now

Citibank s share price till Nov 20, 2008

Net income fell down to negative within 2 years

Citibank in the news

Citibank ordered to repay $18 million

Citibank saved through a bailout plan of $20 Billion

The action, announced jointly by the Treasury Department, the Federal Reserve and Department, the Federal Deposit Insurance Corp., is aimed at shoring up a huge financial Corp., institution whose collapse would wreak havoc on the already crippled financial system and the U.S. economy. As they said "We will continue to use all of our resources to preserve the strength of our banking institutions, and promote the process of repair and recovery and to manage risks" .

Citibank Revives

US government rescues Citibank, bails out Citibank with $20 billion The Citibank bailout, announced on Nov 25, 2008 will give the US government a 7.8 per cent equity stake Shares of Citigroup surged as much as 72 per cent the very next day Citibank reports profit for January and February 2009, Dow Jones (US stock Exchange) up 379 pts Citibank Korea s Q2 (April June) net profit up 13.8 %

Citibank India net profit rises 20.45 % to Rs. 2173 Crore during 2008-2009

At the moment it seems like bailout is going to repaid before time

A word of CAUTION

Although, it is fairly recent to comment whether Citibank has revived completely or not, however, relating to the present scenario, it has definitely survived recession. This definitely had been the major crisis Citibank has ever faced in its course. Still, lot of cost cutting measures have to be applied by Citibank to come out of the struggle and win over recession.

Thank youRegards, Titans team ( Manisha, Sandeep, Ashish,Joheb & Javed )