Citibank, N.A.

Company Profile
Reference Code: 12678 Publication Date: Aug 2006
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.... N........................................... TABLE OF CONTENTS TABLE OF CONTENTS Company Overview ... 17 Citibank..... 4 Business Description ...CITIBANK........................ © Datamonitor Page 3 .............................................. 5 History ............................................ 10 SWOT Analysis ............ 11 Top Competitors ......... 9 Major Products And Services............................................................................. 16 Locations and Subsidiaries .. 6 Key Employees ........................................A.......................A....................................................................................... N........................................................... 4 Key Facts......................................

2% from 2004.700 locations spanning over 70 countries worldwide. small businesses. NEC SIC 6021 National Commercial Banks SIC 6712 Offices of Bank Holding Companies NAICS Codes 52111. 52211. lending and investment services to individual consumers. The net profit was $8. 52221.A. a decrease of 6. N. 551111 0 December 0 SIC 6011 Federal Reserve Banks SIC 6019 Central Reserve Depository Institutions.830 million in fiscal year 2005. N.CITIBANK.A. Company Overview COMPANY OVERVIEW Citibank is the consumer and corporate banking division of Citigroup. large corporations and governments. the US.A. 522298.citibank. KEY FACTS Head Office Citibank. N. Citibank has no published revenues for fiscal year 2005. 399 Park Avenue New York NY 10022 United States Phone Fax Web Address Revenues/turnover (US$ Mn) Financial Year End Employees SIC Codes +1 212 559 1000 +1 212 793 3946 http://www. The company has operations in about 1. It is headquartered in New York. Citibank provides a range of banking. © Datamonitor Page 4 .

the Middle East and Africa. the Philippines and Singapore. Citibank global securities service provides securities-related services such as custody. cash-management and electronic-banking business. agency and trust.CITIBANK. Latin America. On the site. trade finance and e-commerce. supported by its electronic delivery systems. investment banking. locate Citibank Financial Centers and ATMs globally. and Citibank global securities services. small business and corporate/institutional. including ATMs and the world wide web. Japan. The company divides its operations into three sectors: personal finance. and depositary receipts. consumers may sign onto their Citi card. bank and brokerage accounts. Citibank. Citibank. offering consumer and small business products and services. Hong Kong. consumer finance and retail banking products and services. N. N. Citibank also operates an internet banking site. among other functions. Business Description BUSINESS DESCRIPTION Citibank is a commercial bank and a wholly owned subsidiary of Citigroup. its sales and trading business provides capital markets products to clients. commercial banking. In addition.A. and private banking. clearing.A. © Datamonitor Page 5 . Citibank’s offerings include credit cards. The company’s credit card solutions for individuals and businesses include the Citi Advantage Card. India. Citibank’s financial center network comprises local offices. access personal finance content and use a range of financial tools. Citi Platinum Select Card. and Citi Platinum Select Advantage Business Card. Citibank also provides transaction banking services including eBusiness. The bank has extensive operations in the US and Asia including China. cash management. It also has offices in Europe.

In 1955. History HISTORY Citibank was founded in 1812 as the City Bank of New York. N. The company marked its 150th anniversary in 1962 by shortening its name to First National City Bank. The Citibank. A year later. The year 1961 saw First National City Overseas Investment Corporation become the bank’s holding company for non-US-based subsidiaries and affiliates. Citibank expanded its operations in 1918 with the acquisition of International Banking Corporation. a US overseas bank. In the 1970s. Citibank had become the largest bank in the US. First National City Bank became Citibank NA (for National Association) in 1976. National City inaugurated the first foreign branch of any US national bank. In 1998. the bank had become the largest commercial bank in the world. The merged company was known as the City Bank Farmers Trust Company. Later in 1914. By 1894. The company also merged with the Farmers’ Loan and Trust Company the same year. A year later the bank opened an office in Rio de Janeiro. By 1929. the company had become the largest bank in the US. It also opened branches in Vietnam and South Africa. The year 1999 saw Citibank growing its presence in Latin America with the acquisition of Financiero Atlas. The company began its international operations in 1902 opening its offices in Asia. The company continued its inorganic growth in the 1990s with the opening of the first fully foreign owned commercial bank in Russia (1994) and the first full service branch in China (1995). © Datamonitor Page 6 . all Citicorp and Travelers Group divisions including Citibank were merged to establish the world’s leading financial services group Citigroup. the company merged the savings banks it acquired in the 1980s and began operating them as Citibank FSB under a single charter. It joined the US national banking system in 1865 and took the name The National City Bank of New York. while the First National City Corporation holding company changed its name to Citicorp.A. the second largest consumer finance company in Chile.A. By 1992. the bank changed its name to The First National City Bank of New York. the company changed its name again. The company further expanded its businesses in 1981 with the purchase of Diners Club. N.CITIBANK. in Buenos Aires. including Shanghai and Manila.

A. Citibank. Citibank also launched Citibanking in Malaysia in the same year. the FSA Citibank. In July 2006. In early 2003. The year 2004 saw the company launch Citibanking. Later in the year. Citibank’s parent Citigroup announced the completion of the acquisition of Golden State Bancorp for $2. Citibank closed its private banking business in Japan. the bank entered into a merchant services alliance agreement with First Data Corporation (a leading e-commerce and payment service provider) to sell its Citi Merchant Services unit (a provider of credit and debit card payment processing services) and manage the business in alliance with the company. N. N. In May 2006. affecting 97.000 customers. Citibank and Cathay Pacific Airways launched the first co-branded credit card for frequent travelers. China’s leading brokerage. In the following year.A. This move succeeded in expanding Citibank’s branch network in California fourfold. a new proposition aimed at providing comprehensive banking services and sophisticated tools to meet the financial needs of the middle-income group in Hong Kong. In 2001. The year also saw the Financial Services Agency of Japan (FSA) issue an administrative order against Citibank Japan requiring that Citigroup exit all private banking operations in Japan by September 2005. Citibank announced the launch of retail-banking operations in Moscow. making it the first US bank to conduct commercial operations in the country. Towards the end of the year KorAm was merged with the Citibank Korea branch to establish Citibank Korea. Citibank agreed to purchase a minority stake in China-based Shanghai Pudong Development was ranked number one in online by Gomez. History following year the company became the first international bank to open a full-service branch in Israel. Visa Travel Money. In August 2005. The new center was opened to meet growing demand fro wealth management services in Shanghai. Later in the year. © Datamonitor Page 7 . In the following month. A year later Citibank announced a cooperation agreement with Galaxy Securities. In the closing month of the year. an IT problem at Citibank Japan disrupted hundreds of bank transactions over several days.CITIBANK. Following this the bank opened its first dedicated CitiGold Wealth Management Center. an internet benchmarking and improvement strategies firm. Other acquisitions during the year included the acquisition of Hungarian retail activities of ING Bank. Golden State was subsequently merged into Citibank. Citibank and China Merchants Bank issued China’s first international travel cash card.3 billion.

internal control and outsourcing following a series of system failures involving transaction processing that affected thousands of individual and corporate customers during the year. History ordered Citibank to fundamentally re-evaluate and redevelop its system of governance.CITIBANK.A. Citibank. © Datamonitor Page 8 .A. N. N.

N.A. Key Employees KEY EMPLOYEES Name William R Rhodes Job Title Chairman Board Senior Management Compensation Citibank.CITIBANK. N.A. © Datamonitor Page 9 .

N.A.CITIBANK. Major Products And Services MAJOR PRODUCTS AND SERVICES Citibank is the consumer and corporate banking division of Citigroup. Citibank offers the following products and services: Banking services: Credit cards Transaction services Mortgages Loans Investments Planning/retirement solutions Insurance Small business services Corporate/Institutional services: Asset management Cash management services Government services Business Insurance Private banking Securities Trading services Citibank.700 locations in about 70 countries worldwide.A. N. © Datamonitor Page 10 . The company has operations in around 1.

N. it also gives Citibank greater cross-selling opportunities. consumer finance and retail banking products and services. commercial banking. It leverages its affiliation to Citigroup to gain a competitive advantage. © Datamonitor Page 11 . investment banking. The company has operations in around 1. high compliance costs relating to Basel II could adversely affect the margins of the company. trade finance and e-commerce. Strengths Affiliation to the Citigroup Strong Tier-1 ratio Strong mandates Weaknesses Weakness in Citibank Japan’s IT systems Decline in profits Opportunities Positive outlook for global banking industry Growing securitization in European markets Growing opportunities in investment banking Threats High interest rates Basel II Accord Consolidation in the banking industry Strengths Affiliation to the Citigroup Citibank benefits from its affiliation to the Citigroup. Additionally. However.A. N. At the end of fiscal 2005. and private banking. cash management. Citibank’s Tier 1 ratio was higher than some of its competitors. one of the world’s largest financial services groups.4 trillion and revenues of $120.A. SWOT Analysis SWOT ANALYSIS Citibank is a commercial bank and a wholly owned subsidiary of Citigroup. Citigroup had an asset base of over $1.CITIBANK. The company leverages its affiliation to Citigroup to gain a competitive advantage. Citibank’s offerings include credit cards. The Tier 1 ratio is the capital adequacy ratio that allows the banks to Citibank. Citibank has been leveraging the established brand name of its parent group to win customers amidst intense competition. Strong Tier-1 ratio At the end of the fiscal year 2005. The access to the parent group’s huge resources enables Citibank to pursue its expansion plans through which it has built its presence in 70 countries.700 locations in about 70 countries worldwide.318 million.

to which the bank outsourced the tasks. Citibank’s net profits declined by 6. The company’s Tier 1 ratio is also higher than the average of 8% maintained by the global banking institutions. © Datamonitor Page 12 . The Tier 1 ratio of the bank was recorded at 8. Strong mandates Citibank has strengthened its market position in the cash management business over the past year. A continued problem with its IT systems points to weakness in the company’s current system of governance. Decline in profits Citibank has seen a decline in its net profits in the last year. In May 2006. As a result of the problem some transactions were double-booked.2% from 2004 to reach $8. Weaknesses Weakness in Citibank Japan’s IT systems IT systems management at Citibank Japan has been less than adequate. A decline in net profit puts Citibank at a competitive disadvantage. The fall in the net income reflects the fact that the bank was unable to manage its costs efficiently during the year.A. SWOT Analysis absorb losses without being required to cease trading. The bank won over 1. In June. A higher Tier 1 ratio secures the bank’s operations in the event of a financial crisis. Both glitches occurred at the system development department and the data processing center of Citigroup in Singapore. Citibank. N.6%).4%. which have adversely affected its market image and knocked investor confidence.000 customers.900 transactions to be affected with similar problems. an improper execution of night-time batch processing of the system for corporate banking caused 1. N. Citibank’s cash management services recorded a strong increase in the number of mandates.000 incremental mandates from existing customers over the course of the year. affecting about 97. higher than its competitor Deutsche Bank (7.A. Additionally. Citibank also received about 1.830 million. A strong increase in mandates during the year reflects increasing confidence in the bank’s cash management capabilities . internal control and outsourcing. while others were processed but not reflected in statements. an IT problem at Citibank Japan disrupted hundreds of bank transactions over several days. In fiscal 2005.CITIBANK. This follows data processing problems in 2004 that had caused massive losses of Citibank’s customer information.850 new mandates from clients during the year. In fiscal 2005.

There has been substantial increase in activity in almost every asset class. if required.1% (from 2004) to E319. The outlook for the future is positive with the global commercial banking industry likely to grow at a CAGR of about 5% in the next five years (2006-2010) to reach about $42. N. The global investment banking and brokerage industry generated total revenues of $57. SWOT Analysis Opportunities Positive outlook for global banking industry The global banking industry recorded a CAGR of 4. with most of the increase expected to come from the commercial mortgage-backed securities (CMBS) and collateralized debt obligation (CDO) sectors. Issuance in the European securitization market set a record for the seventh consecutive year in 2005. The number of corporate deals has been rising strongly in US and Asia-Pacific region.2 billion. Additionally.5% for the five-year period spanning 2001-2005. By converting intangible assets into cash from its expected future profits. growing 31. equivalent to about 38% of the overall industry value. it is well-positioned to benefit from this positive outlook.9% in the 2001-2005 period. the global commercial banking industry grew by 4. increased competition. corporate reforms and restructuring initiatives.A. © Datamonitor Page 13 . Corporations across geographies have been considering mergers and acquisition strategies to realize cost synergies against mounting oil prices. which generated total revenues of $21. securitization would enable it to finance its customers without tying up large amounts of borrowed capital.404 billion.CITIBANK. Securitized issuance in Europe is likely to increase by approximately 15% in 2006. For this period. The global commercial banking industry is expanding owing to a global economic upturn.A.5 billion in 2005. pricing pressures. gap in product mix and asset concentration. acquisitions. representing a compound annual growth rate (CAGR) of about 8.800 billion in 2010. On the other hand. Growing securitization in European markets Securitization in Europe has been recording strong growth over the past few years.7 billion in 2005. C Growing opportunities in investment banking The global investment banking industry is benefiting from the increasing consolidations. In 2005. This would enable it to transfer its risks to the capital markets. This presents an opportunity for Citibank to securitize its loans and other assets. the mergers and Citibank.2% to about $33. mergers. the leading revenue source for the global investment banking and brokerage sector remained the equity segment. N. With Citibank presence in around 70 countries.

The Basel II Capital Accord requires banks to assess risk in each area of their business and set aside adequate regulatory capital. insurance companies and other broad-based financial services firms have merged with other financial institutions to diversify their offerings and reduce their corresponding business risks. In 2010 the global investment banking and brokerage sector is expected to have a record value of approximately $86 billion.A.5% (at the end of May 2006) in UK. © Datamonitor Page 14 . N. these institutions aim to increase their market share and make the most of economies of scale. At the same time.25%. which represents about 33% of the industry’s value. which may adversely affect Citibank’s revenues.CITIBANK. On the back of their enhanced size and competitive position. High compliance costs could exert downward pressure on the margins of the company. A number of large commercial banks. which could result in pricing and margin pressure for the group in some product markets. The cost of complying with the Basel II Accord has become a heavy burden for most banks. Citibank. The US Federal Reserve has led the way raising interest rates for the 17th consecutive time on June 29. The CAGR of the sector in the period 2005-2010 is likely to remain at about 8%. N. The increased demand for investment banking services should see Citibank realize greater revenues from it securities and trading services. Europe and Germany. It is expected that interest rates in the US may reach 6% by the end of 2006. 2006 to 5. SWOT Analysis acquisitions segment was worth approximately $19 billion. The European Central Bank (ECB) also raised interest rates in June 2006 to 2. accurate and granular data within the credit management information systems. Threats High interest rates The past few years have seen Central Banks impose higher interest rates to check inflation and the overheating of regional economies. an increase of about 49% since 2005. Consolidation in the banking industry Consolidation in the banking sector appears set to continue in the US. During a high interest rate regime.75%. Basel II Accord The Basel II Accord better aligns regulatory capital of a bank with its risk profile. the Bank of England has maintained interest rates at a high of 4.A. the demand for loans goes down as they become more expensive. Complying with the new qualification standards requires comprehensive records of consistent.

in the US banking industry.CITIBANK. N. about 140 less than a year earlier and about 770 fewer than the total number of banks at the end of 2000.A. and the acquisition of FleetBoston Financial by Bank of America in 2003. JP Morgan’s acquisition of Bank One. These include the merger of UFJ Holdings and Mitsubishi Tokyo Financial Group in 2005. Ongoing consolidation in the international market is creating bigger rivals for Citibank with resources matching that of its holding company (Citigroup). Citibank. consolidation strongly continued in 2005.A. Some of these mergers have created the biggest banks in the banking industry intensifying the competition even further. N. There were 7. © Datamonitor Page 15 .146 commercial banks at the end of March 2005. In the past few years the banking industry has seen some of the highest valued mergers and acquisitions. Some of these consolidated companies may take away markets share from Citibank. SWOT Analysis In fact.

: Bank of America Corporation Deutsche Bank AG Federal Reserve Bank of New York Franklin Resources. N. The American Business Bank DVB Bank AG BT Financial Group First Banks Inc.A. © Datamonitor Page 16 .. Citibank. BankWest Corporation Bank Bendigo Bank Ltd.A. HSBC Holdings plc JP Morgan Chase & Co Advest Group.A.CITIBANK. Inc. Banco BBM S.A. Top Competitors TOP COMPETITORS The following companies are the major competitors of Citibank. N. N. Inc.

© Datamonitor Page 17 . United States Student Loan Other Locations and Subsidiaries Cititcorp Insurance Services. Inc. N. Inc. 399 Park Avenue New York NY 10022 United States P: 1 212 559 1000 F: 1 212 793 3946 www.A.A.A. N. Locations and Subsidiaries LOCATIONS AND SUBSIDIARIES Head Office Citibank.citibank. United States CitiCapital Commercial Corporation United States Citibank International United States Citicorp Credit Services. Inc.CITIBANK. Inc. United States Citicorp Interim Services. N. The United States Citibank. United States Citibank Financial Investment Centre branch Level 1 Rowes Arcade 215 Adelaide St Brisbane Queensland 4000 Australia Citibank Overseas Investment Corporation United States Citicorp Leasing.

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