Citibank Made By : Utsav Mahendra BBA 4502/09 Akshay Kalra  BBA 4514/09
Citigroup Inc. <ul><li>Type :   Public Company  </li></ul><ul><li>Industry :   Banking, Financial services  </li></ul><ul>...
<ul><li>Area served :   Worldwide  </li></ul><ul><li>Key people :   Vikram Pandit (CEO), Richard Parsons (Chairman) </li><...
<ul><li>Revenue :   US$ 86.601 billion (2010) </li></ul><ul><li>Operating income :   US$ 10.951 billion (2010) </li></ul><...
<ul><li>Total equity  :  US$ 163.468 billion (2010) </li></ul><ul><li>Employees :   260,000 (2010) </li></ul><ul><li>Subsi...
Citi Logo’s
 
<ul><li>Vikram Pandit CEO, Citigroup </li></ul>Richard Parsons  Chairman, Citigroup
Citibank
Facts About the Company <ul><li>Citigroup is a global diversified financial services company. </li></ul><ul><li>As of Dece...
<ul><li>Citigroup operates two primary business segments:  </li></ul><ul><li>Citicorp </li></ul><ul><li>Regional Consumer ...
Timothy C .Collins Chairman of Investment Committee,  Alain J.P .Belda Managing Director, Robert L. Joss, Ph.D. Professor ...
Lawrence R. Ricciardi Senior Advisor, IBM Corporation ,Jones Day and Lazard Freres & Co. Judith Rodin President, Rockefell...
Citibank Global Asia Pacific Europe, Middle East & Africa Latin America North America
Asia Pacific   <ul><li>In the Asia Pacific region, Citi has over 50,000 employees across 19 countries and territories: </l...
<ul><li>Citibank serves more than 600,000 of the region's most affluent consumers. </li></ul><ul><li>In 2010, Citi Asia Pa...
Europe, Middle East & Africa  <ul><li>In EMEA, Citi employs 38,000 people. </li></ul><ul><li>Presence in 55 countries and ...
<ul><li>Supports 67 payment currencies. Access to 3,800 distribution  </li></ul><ul><li>points in Africa and clearing netw...
 
Latin America  <ul><li>In fact, Citi has the broadest presence in 24 countries Latin America.  </li></ul><ul><li>Citi's ge...
Latin America  <ul><li>Citi Latin America, including Mexico's Banamex, has made total social investments between 2008 and ...
North America   <ul><li>North America (NA) Regional Consumer Banking is comprised of two business segments.  </li></ul><ul...
 
SWOT OF CITIBANK
Strengths <ul><li>Global Network </li></ul><ul><li>Backing of the Citigroup </li></ul><ul><li>Innovative Product Offering ...
Weakness <ul><li>Tarnished Brand Name </li></ul><ul><li>Online Operations are Geared Towards US Clients </li></ul><ul><li>...
Opportunities <ul><li>Growth Markets </li></ul><ul><li>Chinese Markets </li></ul><ul><li>Online Presence </li></ul><ul><li...
 
Threats <ul><li>Foreign Exchange Fluctuations </li></ul><ul><li>Market Conditions </li></ul><ul><li>Regulatory Forces </li...
<ul><li>CASE STUDY  </li></ul>
 
Federal Bailout of Citibank
<ul><li>The US Govt has engineered at least four different rescues of the institution now known as Citigroup. </li></ul><u...
<ul><li>On April 11, 2007, the  Citigroup announced staff cuts and relocations.  Executive salaries will be capped. </li><...
 
<ul><li>In August 2008,  Citibank was ordered to repay the $14 million (close to $18 million including interest and penalt...
 
 
 
Federal Bailout 2008 Situation
 
 
 
<ul><li>As a result, Citigroup and Federal regulators  negotiated a plan to stabilize the company. </li></ul><ul><li>The T...
<ul><li>In addition, the government will get warrants, or the right to purchase $2.7 billion worth Citigroup shares in the...
Citibank Statement
<ul><li>On January 16, 2009, Citigroup announced its intention to reorganize itself into two operating units:  </li></ul><...
 
Return To Profitability <ul><li>In 2010, Citigroup achieved its first profitable year since 2007.  </li></ul><ul><li>It re...
 
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Utsav Mahendra : Citibank

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Transcript of "Utsav Mahendra : Citibank"

  1. 1. Citibank Made By : Utsav Mahendra BBA 4502/09 Akshay Kalra BBA 4514/09
  2. 2. Citigroup Inc. <ul><li>Type : Public Company </li></ul><ul><li>Industry : Banking, Financial services </li></ul><ul><li>Predecessor : Citicorp ;Travelers Group </li></ul><ul><li>Founded : June 16, 1812 </li></ul><ul><li>Headquarters : 399 Park Avenue, Manhattan, New York City, New York, U.S. </li></ul>
  3. 3. <ul><li>Area served : Worldwide </li></ul><ul><li>Key people : Vikram Pandit (CEO), Richard Parsons (Chairman) </li></ul><ul><li>Products : Credit Cards, Consumer Banking, Corporate Banking, Investment Banking, Global Wealth Management, Financial Analysis, Private Equity </li></ul>Citigroup Inc.
  4. 4. <ul><li>Revenue :  US$ 86.601 billion (2010) </li></ul><ul><li>Operating income :  US$ 10.951 billion (2010) </li></ul><ul><li>Net income :  US$ 10.602 billion (2010) </li></ul><ul><li>Total assets :  US$ 1.914 trillion (2010) </li></ul><ul><li>Source: en.wikipedia.org/wiki/Citibank </li></ul>Citigroup Inc.
  5. 5. <ul><li>Total equity :  US$ 163.468 billion (2010) </li></ul><ul><li>Employees : 260,000 (2010) </li></ul><ul><li>Subsidiaries : Banamex, Citibank, Citigold, Citi Private Bank, Egg Banking, Metalmark Capital, Morgan Stanley Smith Barney (49%),Nikko Citigroup, Railmark Holdings, Salomon BIG, Sedna Finance </li></ul><ul><li>Website : Citigroup.com </li></ul><ul><li>Source: en.wikipedia.org/wiki/Citibank </li></ul>Citigroup Inc.
  6. 6. Citi Logo’s
  7. 8. <ul><li>Vikram Pandit CEO, Citigroup </li></ul>Richard Parsons Chairman, Citigroup
  8. 9. Citibank
  9. 10. Facts About the Company <ul><li>Citigroup is a global diversified financial services company. </li></ul><ul><li>As of December 31, 2010, the Company had approximately 200 million customer accounts </li></ul><ul><li>Business in more than 160 countries and jurisdictions. </li></ul>
  10. 11. <ul><li>Citigroup operates two primary business segments: </li></ul><ul><li>Citicorp </li></ul><ul><li>Regional Consumer Banking (RCB) </li></ul><ul><li>Institutional Clients Group (ICG) </li></ul><ul><li>Citi Holdings </li></ul><ul><li>Brokerage and Asset Management (BAM) </li></ul><ul><li>Local Consumer Lending (LCL) </li></ul><ul><li>Special Asset Pool (SAP) </li></ul><ul><li>On February 1, 2011, Citigroup acquired Maltby Acquisitions Limited (Maltby) </li></ul>
  11. 12. Timothy C .Collins Chairman of Investment Committee, Alain J.P .Belda Managing Director, Robert L. Joss, Ph.D. Professor of Finance Emeritus and Former Dean, Stanford University Michael E. O'Neil Former Chairman and CEO, Bank of Hawaii Corporation Vikram Pandit Chief Executive Officer Citigroup Richard D . Parsons Chairman, Citigroup Inc. Board of Directors
  12. 13. Lawrence R. Ricciardi Senior Advisor, IBM Corporation ,Jones Day and Lazard Freres & Co. Judith Rodin President, Rockefeller Foundation Robert L. Ryan Chief Financial Officer, Retired, Medtronic Inc . Anthony M. Santomero Former President, Federal Reserve Bank of Philadelphia William S. Thompson, Jr. Chief Executive Officer, Retired, Pacific Investment Management Company (PIMCO) Ernesto Zedillo Director, Center for the Study of Globalization
  13. 14. Citibank Global Asia Pacific Europe, Middle East & Africa Latin America North America
  14. 15. Asia Pacific <ul><li>In the Asia Pacific region, Citi has over 50,000 employees across 19 countries and territories: </li></ul><ul><li>Citibank is the region's leading retail bank with a history of innovation and customer service. </li></ul><ul><li>Citi has the widest distribution network in the Asia Pacific, including more 700 retail branches and 2,000 ATM’s. </li></ul><ul><li>Citibank is also the top card issuer in the Asia Pacific, with close to 15 million card accounts in circulation. </li></ul>
  15. 16. <ul><li>Citibank serves more than 600,000 of the region's most affluent consumers. </li></ul><ul><li>In 2010, Citi Asia Pacific was awarded the Best Bank in Asia by Finance Asia. </li></ul><ul><li>More than 400 awards received during the 2005-2010. </li></ul><ul><li>SERVICES OF CITI @ ASIA PACIFIC </li></ul><ul><li>Citi's Institutional Clients Group  </li></ul><ul><li>Global Markets  </li></ul><ul><li>Global Banking  </li></ul><ul><li>Global Transaction Services  </li></ul>
  16. 17. Europe, Middle East & Africa <ul><li>In EMEA, Citi employs 38,000 people. </li></ul><ul><li>Presence in 55 countries and Business in 61 more. </li></ul><ul><li>Citi's Global Group addresses the local and regional needs. </li></ul><ul><li>Citi's multi-national clients relationships with more than 8,000 subsidiaries and more than 1,500 parent companies in EMEA. </li></ul><ul><li>Global Transaction Services (GTS) business facilitates commercial, financial and trade flows globally for our corporate, financial institution and public sector clients. </li></ul>
  17. 18. <ul><li>Supports 67 payment currencies. Access to 3,800 distribution </li></ul><ul><li>points in Africa and clearing network across 33 markets. </li></ul><ul><li>Citi Private Bank is a trusted advisor to the world's wealthiest </li></ul><ul><li>with $46 billion in regional client business volume. </li></ul><ul><li>Our network of more than 200 private bankers and investment professionals across 13 offices. </li></ul><ul><li>In EMEA, we maintain 298 branches, 6 investment centers and more than 800 ATMs. </li></ul>
  18. 20. Latin America <ul><li>In fact, Citi has the broadest presence in 24 countries Latin America. </li></ul><ul><li>Citi's geographic coverage spans across: Argentina, Bahamas, Barbados,  Brazil, Chile, Colombia, Costa Rica, Salvador, Guatemala, Haiti, Honduras, Jamaica, Mexico, Paraguay, Trinidad and Tobago, Uruguay and Venezuela. </li></ul><ul><li>Citi currently operates nearly 2,600 retail bank branches and point of sales. </li></ul><ul><li>With more than $93 billion in regional client assets, Citi Wealth Management is one of the largest providers of financial and investments solutions in Latin America. </li></ul>
  19. 21. Latin America <ul><li>Citi Latin America, including Mexico's Banamex, has made total social investments between 2008 and 2010 of more than US $32.5 million, mostly in the fields of microfinance and micro-entrepreneurship. </li></ul><ul><li>As well as financial education, to encourage the economic empowerment of more than 625,000 beneficiaries. </li></ul><ul><li>Additionally, investments for US $9 million have been targeted to the conservation of Latin American cultural patrimony, social development and ecology. </li></ul>
  20. 22. North America <ul><li>North America (NA) Regional Consumer Banking is comprised of two business segments. </li></ul><ul><li>It has over 30,000 professionals working together to provide consumers with retail banking, small business, commercial banking, wealth management, residential real estate, and credit card products and services. </li></ul><ul><li>Retail Banking </li></ul><ul><li>Branch-Based Retail Banking </li></ul><ul><li>Small Business </li></ul><ul><li>Wealth Management </li></ul><ul><li>Residential Real Estate </li></ul><ul><li>Citi-Branded Cards </li></ul>
  21. 24. SWOT OF CITIBANK
  22. 25. Strengths <ul><li>Global Network </li></ul><ul><li>Backing of the Citigroup </li></ul><ul><li>Innovative Product Offering </li></ul><ul><li>Diversified Geographic Operations   </li></ul><ul><li>Capital Adequacy   </li></ul><ul><li>Brand Image   </li></ul>
  23. 26. Weakness <ul><li>Tarnished Brand Name </li></ul><ul><li>Online Operations are Geared Towards US Clients </li></ul><ul><li>Branding Problems </li></ul><ul><li>High Sub-Prime Related Direct Exposures  </li></ul><ul><li>Decline in Financial Performance   </li></ul><ul><li>Exposure to Lehman Brothers   </li></ul>
  24. 27. Opportunities <ul><li>Growth Markets </li></ul><ul><li>Chinese Markets </li></ul><ul><li>Online Presence </li></ul><ul><li>Click Citi </li></ul><ul><li>Realigned Operating Units </li></ul><ul><li>  </li></ul><ul><li>Launch of New Products and Services </li></ul><ul><li>  </li></ul>
  25. 29. Threats <ul><li>Foreign Exchange Fluctuations </li></ul><ul><li>Market Conditions </li></ul><ul><li>Regulatory Forces </li></ul><ul><li>Impact of Slowdown   </li></ul><ul><li>Fluctuations in Interest Rates  </li></ul>
  26. 30. <ul><li>CASE STUDY </li></ul>
  27. 32. Federal Bailout of Citibank
  28. 33. <ul><li>The US Govt has engineered at least four different rescues of the institution now known as Citigroup. </li></ul><ul><li>Citi reported losing $8–11 million several days after Merrill Lynch also losing billions from the subprime mortgage crisis in the United States. </li></ul><ul><li>Main Reason </li></ul><ul><li>As the Subprime Mortgage Crisis began to unfold </li></ul><ul><li>Heavy Exposure to toxic mortgages in the forms of Collateralized Debt Obligation (CDOs). </li></ul><ul><li>Compounded by poor risk management led the company into serious trouble </li></ul>
  29. 34. <ul><li>On April 11, 2007, the Citigroup announced staff cuts and relocations. Executive salaries will be capped. </li></ul><ul><li>On November 4, 2007,  Charles Prince  quit as the chairman and chief executive of Citigroup. </li></ul><ul><li>Former United States Secretary of the Treasury  Robert Rubin  has been asked to replace ex-CEO Charles Prince to manage the losses Citi. </li></ul>
  30. 36. <ul><li>In August 2008,  Citibank was ordered to repay the $14 million (close to $18 million including interest and penalties). </li></ul><ul><li>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. </li></ul><ul><li>Under these circumstances Citibank shares fell more than 6%. </li></ul><ul><li>On November 23, 2008, Citigroup was forced to seek federal financing to avoid a collapse similar to those suffered by its competitors Bear Stearns and AIG. </li></ul><ul><li>The U.S. government provided $25 billion and guarantees to risky assets to Citigroup in exchange for stock. </li></ul><ul><li>This was one of a series of companies receiving financial aid from the government that began with Bear Stearns ,Lehman, AIG, and the GSE's. </li></ul>
  31. 40. Federal Bailout 2008 Situation
  32. 44. <ul><li>As a result, Citigroup and Federal regulators negotiated a plan to stabilize the company. </li></ul><ul><li>The Treasury Department, the  Federal Reserve  and the  Federal Deposit Insurance Corporation  (FDIC) will cover 90% of the losses on its $335 billion portfolio after Citigroup absorbs its losses. </li></ul><ul><li>The goal of the Government was to restore confidence in Citigroup and the nation's banking system. </li></ul><ul><li>In November 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. </li></ul><ul><li>By November 2008, the ongoing crisis hit Citigroup hard and despite federal TARP bailout money, the company announced further cuts. </li></ul>
  33. 45. <ul><li>In addition, the government will get warrants, or the right to purchase $2.7 billion worth Citigroup shares in the future. </li></ul><ul><li>While giving the government a major say in its operations. </li></ul><ul><li>As a condition of the bailout, Citigroup's dividend payment has been reduced to 1 percent per share. </li></ul><ul><li>The government will impose restrictions as well. Citigroup will be prohibited from paying out a dividend of more than a penny per share for the next 3 yrs. </li></ul>
  34. 46. Citibank Statement
  35. 47. <ul><li>On January 16, 2009, Citigroup announced its intention to reorganize itself into two operating units: </li></ul><ul><li>1) Citicorp for its retail and institutional client business </li></ul><ul><li>2) Citi Holdings for its brokerage and asset management. </li></ul><ul><li>On February 27, 2009 Citigroup announced that the United States government would be taking a 36%  equity  stake in the company by converting $25 billion in emergency aid into  common shares . </li></ul><ul><li>Citigroup shares dropped 40% on the news. </li></ul><ul><li>On June 1, 2009, it was announced that Citigroup Inc. would be removed from the Dow Jones Industrial Average effective June 8, 2009, due to significant government ownership. </li></ul><ul><li>  </li></ul>
  36. 49. Return To Profitability <ul><li>In 2010, Citigroup achieved its first profitable year since 2007. </li></ul><ul><li>It reported $10.6 billion in net profit, compared with a $1.6 billion loss in 2009. </li></ul><ul><li>Citibank @ (US stock Exchange) Up with 379 pts </li></ul><ul><li>It is fairly recent to comment whether Citibank has revived completely or not, however, relating to the present scenario, it has definitely survived recession. </li></ul><ul><li>It had been the major crisis Citibank has ever faced in its course. </li></ul><ul><li>Lot of Cost Cutting measures have to be applied by Citibank to come out of the struggle and win over recession. </li></ul>

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