Term Paper Citibank

8/3/2019 Term Paper Citibank

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CITIBANK

PRESENTED BY:

ABHISHEK JAYASWAL

SECTION B

A1802011305


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index

S.No . CONTENTS PAGE NO.1.

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INTRODUCTIONCitibank, a major international bank, is the consumer banking arm of financial services giant Citigroup.Citibank was founded in 1812 as theCity Bank of New York , later First National City Bank of New York . Asof March 2010, Citigroup is the third largest bank holding company in the United States by total assets,after Bank of America and JP Morgan Chase. More than half of its 1,400 offices are in the United States,mostly in New York City, Chicago, Los Angeles, the San Francisco Bay Area, Washington, D.C. MiamBoston, Philadelphia, Houston & Dallas. In addition to the standard banking transactions, Citibank offersinsurance, credit cards and investment products. Their online services division is among the mostsuccessful in the field, claiming about 15 million users. Head Quartered in New York, USA.

Services Provided:

1. Credit Cards2. Small Business Credit Cards3. Banking & Cash Management Services4. Credit Card Merchant Services5. Financing Community Development6. Trade & Foreign Exchange7. Citi Microfinance

Brands Owned by Citigroup:

1. Citi2. Citibank3. CitiFinancial


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4. One Main Financial5. CitiMortgage6. Citi Capital Advisors7. Citi Cards8. Citi Private Bank9. Citi Institutional Clients Group10. Citi Investment Research11. Citi Microfinance12. Banamex13. Women & Co.

INTERNATIONAL BUSINESS EXPANSION STRATEGY


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Citibank's Global Network

Citibank is unrivaled in its global presence. They have access to the largest trade services network in theworld, spanning 71 countries and more than 3,000 correspondent banks, with four regional processingcenters supporting around-the-clock operations.

Want to know where we operate in your part of the world? Simply click on any region on this map for a liof the countries in which Citibank has Trade offices.

Our approach to Citizenship is part of the unifying idea on which wehave structured our bank in the wake of the financial crisis. We call this Responsible Finance. The purpose is to make sure our actions arein the interests of our clients, create economic value and aresystemically responsible.

-Vikram Pandit, CEO

Citigroup IncCitibank Global presence in the world

1. Asia Pacific2. Europe, Middle East & Africa3. Latin America4. North America


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Asia Pacific

Citi is the leading global financial services company with some 200 million customer accounts and does business in more than

140 countries. Citi provides consumers, corporations, governments and institutions with a broad range of financial products andservices, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction servicesand wealth management.

In the Asia Pacific region, Citi has over 50,000 employees across 19 countries and territories: Australia, Bangladesh, Brunei,China, Guam, Hong Kong, India, Indonesia, Japan, Korea, Macau, Malaysia, New Zealand, Philippines, Singapore, Sri Lanka,Taiwan, Thailand and Vietnam.

Citi's legacy in the Asia Pacific dates back more than a hundred years. Today we provide more services in more markets for more clients than any other financial institution in the region.

Services provided by Citibank in the Asia Pacific:

Citi's Institutional Clients Group advises companies, governments as well as institutional and retail investors on the best waysto realize their strategic objectives. We create solutions for and provide the broadest possible capital market access to thousandsof issuers and investor clients.

Global Markets offers world-class products and financing solutions through our dominant underwriting, sales and trading, anddistribution capabilities.

Global Banking provides strategic and financial advisory services including acquisitions, mergers, divestitures, financialrestructurings, loans, foreign exchange, cash management, underwriting and distributing equity, debt and derivative services.

Global Transaction Services offers integrated treasury and trade solutions and securities and fund services by leveraging theindustry's largest proprietary network.

Citi Capital Advisors (CCA)offers a broad range of alternative asset management platform to select institutional and ultra-high-net-worth investors; while Citi Investment Research and Analysis focuses on delivering the highest quality company, sector,economic and geographic insights to our clients globally.

Citi Private Bank (CPB) is a leading wealth manager, offering bespoke services to over 6,000 individuals and families, eachwith a net worth of over US$10 million, including one-third of Asia's (ex-Japan) billionaires. CPB has more than 300 privatebankers and investment specialists across the region.


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Citibank is the region's leading retail bank with a history of innovation and customer service. Among global banks, Citi has thewidest distribution network in the Asia Pacific, including more 700 retail branches and over 2,000 automated teller machines.Citibank is also the top card issuer in the Asia Pacific, with close to 15 million card accounts in circulation. Through CitigoldPrivate Client and Citigold banking services, Citibank serves more than 600,000 of the region's most affluent consumers.

Current News in Asia Pacific

1. Citi Philippines Named Best Foreign Bank by Alpha Southeast Asia Magazine 2. Clients Vote for Citi as the Best Cash Management Bank in Euromoneys 2011 Annual Cash Management Survey 3. Citi Launches ETF Services in Asia Pacific4. CitiFX Pro Named Best Retail Platform by FX Week 5. Citi Launches Tablet-Based IPO Solution for Issuers

Europe, Middle East & Africa

In Europe, the Middle East and Africa (EMEA), Citi employs approximately 38,000 people, maintains a physical presence in 5

countries, and does business in 61 more. Clients across EMEA choose Citi for our global footprint, market position, in-countryrelationships and full range of solutions through our extensive suite of products and services.

The region includes a diverse mix of developed and emerging markets, and Citi has a long and deep history in both. Citi sees thtremendous growth prospects for our business within the emerging markets, and we are committed to helping our clients improvtheir operations in these countries at every stage, whether they are just breaking into a new market, expanding their operationsor consolidating a long-term presence.

Our Institutional Clients Group has one of the region's largest fixed income, currencies, commodities and equities sales andtrading and derivative platforms, offering clients liquidity and hedging across the full range of products.

Citi banks more than 90% of FTSE 100 companies nearly 50% of which consider us to be their lead bank. Citi's GlobalSubsidiaries Group dedicated to addressing the local and regional needs of Citi's core multi-national clients from around the

world has helped our bank build relationships with more than 8,000 subsidiaries of more than 1,500 parent companies inEMEA.

Our well-established and highly-regarded Global Transaction Services (GTS) business facilitates commercial, financial and tradflows globally for our corporate, financial institution and public sector clients. Through its presence in 55 markets across EMEAsupports 67 payment currencies, provides access to 3,800 distribution points in Africa alone, and offers a direct custody andclearing network across 33 markets.

Citi Private Bank is a trusted advisor to the world's wealthiest, most influential individuals and families throughout EMEA, wit$46 billion in regional client business volume. Our network of more than 200 private bankers and investment professionalsacross 13 offices provides clients with the best opportunities available around the world and exceptional service uniquely tailoreto their needs and aspirations.

Citi's retail customers choose us for the unrivalled access, control, convenience, security and rewards we provide throughout theworld. In EMEA, we maintain 298 branches, 6 investment centers and more than 800 ATMs. We are also focused on newtechnology investments that will enhance sales capacity, improve the customer experience, and drive innovation via mobile andInternet banking.

Recent Awards

1. Best Consumer Internet Bank in 2011 in Bahrain.2. Best Corporate / Institutional Internet Banks: Best Investment Management Services in Middle East / Africa 2011


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3. Best Consumer Internet Bank - Best Information Security Initiatives 2011 in Europe 4. Best Corporate / Institutional Internet Banks - Best Investment Management Services 2011 in Europe 5. Best Investment Bank in the UAE

Current news in EMEA

1. Citi Expands Global Coverage of Its Card Business with New Countries in Europe, Middle East and Africa 2. Clients Vote for Citi as the Best Cash Management Bank in Euromoneys 2011 Annual Cash Management Survey 3. Hedge Funds to Spend $2.09 Billion on Information Technology in 2011 4. Citi Bulgaria Provides Bulgarian Development Bank with 33 Million Euro Credit Facility 5. CitiFX Launches New Platform for Investors Seeking Currency Alpha

Latin America

Citi, the leading global financial-services company, has approximately 200 million customer accounts, does business in morethan 160 countries and jurisdictions, and is one of the best capitalized banks in the world. All of Citi's resources are aligned tomeet customer needs through its universal bank model a global bank for consumers, corporations, governments andinstitutions. Citi is squarely positioned to leverage its unique global breadth of best-in-class financial services, while preservingability to serve local markets in the fastest-growing areas of the world.

In Latin America, Citi has gained a prominent position in the financial-services industry since 1904, when it started operations Panama, through the International Banking Corporation. In 1914, Citi opened its first international branch in Buenos Aires, Argentina, also marking the first foreign-established branch of any nationally chartered U.S. Bank and, shortly after, openedanother in Rio de Janeiro, Brazil. In 2001, Citi's Latin-American franchise grew with the integration of Banamex, Mexico's leadfinancial institution since 1884.

In fact, Citi has the broadest presence of any financial institution in the region, with operations in 24 countries throughout Latin America. Citi's geographic coverage spans across: Argentina, Bahamas, Barbados, Brazil, Cayman Islands, Chile, Colombia,Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama,Paraguay, Peru, Puerto Rico, Trinidad and Tobago, Uruguay and Venezuela.

Citi currently operates nearly 2,600 retail bank branches and point of sales including joint ventures in Latin America, servingmore than 26 million retail customers accounts. Citi also maintains a leading position in corporate banking and a growingconsumer-banking presence with strong client recognition and brand loyalty. Our renowned GTS business in Latin America andMexico, with $34 billion in deposits and $638 billion in assets under custody, supports 25 different currencies for payments in tcountries we serve.

With more than $93 billion in regional client assets, Citi Wealth Management is one of the largest providers of financial andinvestments solutions in Latin America, with services offered through Citi Private Bank, Banamex Banca Patrimonial, CitigoldPrivate Client and Citigold International, among other business lines.

Since 2004, Citi Latin America has implemented a strategy based on growth in its key markets, furthering its presence in theregion through a mix of direct investments in its network, strategic partnerships and acquisitions.

From 2004-10, the Latin-American franchise added nearly 900 new branches, including joint ventures, and more than eightmillion new customers. We have posted consistent growth in loans, deposits and assets under management. Annualized netincome through 2010 has more than tripled from 2002, the first year after Banamex's integration.

Citi's main business lines are Consumer Banking, Credit Cards, Wealth Management, Global Transaction Services and CapitalMarkets and Banking, commanding leadership in capital market operations, including syndicated loans, international debt issuelocal debt, and announced mergers and acquisitions.


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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, as well as financial education, to encourage theeconomic empowerment of more than 625,000 beneficiaries. Additionally, investments for US $9 million have been targeted tothe conservation of Latin American cultural patrimony, social development and ecology.

Current news in Latin America

1. Clients Vote Citi Best Regional Cash Management Bank in Latin America in Euromoneys 2011 Annual CashManagement Survey

2. Clients Vote for Citi as the Best Cash Management Bank in Euromoneys 2011 Annual Cash Management Survey 3. Latin America: Citi's Global Transactions Services Launches Innovative Web-Based Regional Supply Chain4. Citi Defines New Companies for Trading BDRs in the Brazilian Stock Market

MARKET ANALYSIS


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CASE STUDY ON CITIBANK MARKETING

Citibank is one of the leading banks worldwide. It is now planning to expand its credit card business to Asia Pacific area. Thereare surely threats in that market, but there are also excellent opportunities. In this article I will analyze the Citibank as a brandand will discuss possible solutions to the problems that might occur in the new market.

Brand of Citibank: Citibank has already been in banking operation in Asia Pacific and mainly has good relationships with largebusiness houses. Also, for private customers, Citibank offers the Citi-one accounts with minimum deposit $10,000. In addition,Hong Kong there are 7,600 Citigold customers who are required to deposit more than $100,000 in their accounts. ConsequentlyCitibank has been regarded as a prestigious, consumer-oriented international bank.Clear Positioning: As mentioned above, clear positioning as a high-end bank for upper class and large business firms, Citibankcould successfully create brand image in Asia Pacific.

Core Competencies: Citibank has managed properly these intangible resources with tangible resources such as banking byphone, overdraft protection and a designated customer service officer to manage their accounts. These resources havecombined to create capabilities and become core competencies.

Competitive Advantages: As a result, Citibank has competitive advantages in the banking industry. By adding new financial

products, continuing to improve technologies for providing better services and products, Citibank will strengthen its competitivadvantages; they will become sustainable competitive advantages.


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MAJOR PRODUCTS AND SERVICES

Citibank is the consumer and corporate banking division of leading financial services Company Citigroup. The company hasoperations in around 1,700 locations, in more than 40 countries worldwide. Citibank offers the following products and services

- Banking services- Credit cards- Mortgages- Loans- Investments- Planning/Retirement solutions- Insurance- Small business services- Corporate/Institutional services:- Asset management- Government services- Business Insurance- Private banking

Global Consumer group

The Global Consumer group generated revenues of $41,195 million in 2003, up 8.5% on the previousyear accounting for 53.2% of total revenues. Global Consumer reported net income of $9.648 billion in2003, up $1.396 billion or 17% from 2002, driven by double-digit growth in Retail Banking and Cards, thatwas partially offset by a decline in Consumer Finance. Retail Banking net income increased $1.145 billionor 38% in 2003 primarily due to the impact of the Golden State Bancorp (GSB) acquisition and stronginternational growth including improvement in Argentina.

Cards net income increased $550 million or 18% in 2003 mainly reflecting the addition of the Sears andHome Depot portfolios, growth in Citi Cards and Asia, and lower credit losses in Latin America. ConsumerFinance net income decreased $271 million or 12% in 2003 primarily due to continued weakness inJapan, partially offset by growth in North America, including the acquisition of GSB, and in EMEA. TheGlobal consumer group accounted for 55% of total net income in 2003.

Consumer Finance reported net income of $1.928 billion in 2003, down $271 million or 12% from 2002,principally reflecting a decline in International Consumer Finance resulting from continued weakness inJapan. Thee decline was partially offset by the acquisition of GSB in November of 2002 and a $94 millionrelease of a tax reserve related to a settlement with tax authorities, which increased income in Japan. Netincome of $2.199 billion in 2002 grew $294 million or 15% from 2001, primarily reflecting revenue growthand continued efficiencies resulting from the integration of Associates in North America, partially offset byhigher net credit losses in the US and Japan. The consumer finance segment accounted for 19.8% oftotal Consumer group income and 24.3% of Consumer group revenue.


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Revenues, net of interest expense, of $10.003 billion in 2003 increased $196 million or 2% from 2002.The increase in revenue reflected growth of $490 million or 8% in North America, partially offset by adecline of $294 million or 8% in International Consumer Finance. Revenue growth in North America wasprimarily driven by growth in receivables, which included the addition of the GSB auto portfolio, partiallyoffset by declines in insurance-related revenue.

Global Corporate & Investment Banking group

The Global Corporate & Investment Banking group generated revenues of $20,040 million in 2003accounting for 25.9% of total revenues. The group reported net income of $5.387 billion, $3.159 billion,and $4.392 billion in 2003, 2002, and 2001, respectively. The increase in 2003 net income reflectsincreases of $1.379 billion in Other Corporate, primarily reflecting the absence of a $1.3 billion after-taxcharge in 2002 related to the establishment of reserves for regulatory settlements and related civillitigation, $637 million or 16% in Capital Markets and Banking, and $212 million or 38% in TransactionServices. This segment accounted for 31% of total income in 2003.

The increase in TLAs income was primarily driven by higher net realized insurance investment portfoliogains of $236 million, higher business volumes, and lower taxes, partially offset by higher deferredacquisition cost (DAC) amortization and reduced investment yields. The IIM net loss of $30 million in2003 represented a decrease in income of $85 million from 2002, driven by impairments of ArgentinaGovernment Promissory Notes (GPNs) of $114 million and the impact of certain liability restructuringactions taken in the Argentina voluntary annuity business of $20 million, partially offset by increases inAsia of $24 million and Mexico of $20 million.

Private Bank net income of $551 million in 2003 was up $88 million or 19% from 2002, primarily reflectingincreased investment management and capital markets activity, lending activity, and a lower provision for

credit losses, partially offset by higher expenses, reflecting incentive compensation expense associatedwith higher revenues and higher other employee-related costs, and the impact of narrowing interest ratespreads. Asset Management net income of $394 million in 2003 was down $49 million or 11% from 2002,primarily reflecting the impact of impairments in Argentina and reduced fee revenues, partially offset bythe cumulative impact of positive net flows and lower expenses. Global Investment managementaccounted for 10% of total income in 2003.

Geographical breakdownThe US represents the biggest market of Citigroup accounting for 64% of total net income in 2003. Asiaaccounted for 10%; Japan 4%; Mexico 8%; EMEA 10% and Latin America 4%.


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SWOT ANALYSISCitibank is the consumer and corporate banking subsidiary owned by Citigroup. The company hasoperations in over 100 countries, providing a range of financial solutions aimed at individual clients, smallbusiness, and larger corporations and institutions.

STRENGTHS WEAKNESSESGlobal network Tarnished brand name

Backing of the Citigroup online operations are geared up towards USClientsInnovative product offering

Branding ProblemsOPPURTUNITIES THREATSGrowth Markets Foreign exchange fluctuationsChinese market Market Conditions

Online Presence Regulatory forces

Click Citi

StrengthsGlobal network

Through its operation in around 100 countries, Citibank has created a global network that has provedrobust in the face of economic slumps affecting many Western economies. Although hindered by loandefaults particularly in Argentina and Brazil, and the subsequent rises in provisions, the bank has beenbuoyant in certain European markets and furthered its geographical reach through strategic positioningin Russia and the Pacific Rim, particularly China.

Backing of the Citigroup

Citibank has the undoubted advantage over many of its rivals, of having the financial backing and supportof Citigroup, the hugely successful financial services company. The support this company providesmeans Citibank can approach ventures and business opportunities with considerably less trepidation thanindependent companies. The group is likely to benefit from an adventurous strategy, so long as it has thesustainability to survive the consequences when the groups ventures do not go to plan. Citigroupprovides Citibank with the sustainability required in such circumstances.

Innovative product offering


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Innovative product offerings enable Citibank to remain at the forefront of numerous markets. The bankhas continually developed partnerships to enhance its geographical and sector reach. For example, thebank formed a partnership with Westdeutsche Landesbank Girozentrale. The aim of the deal was toreduce the settlement risk with foreign exchange transactions resulting from trading across various timezones. In addition, in 2003 the bank announced its intentions to develop products specific to the USHispanic population, in a move designed to capitalize further on the groups acquisition of Mexican bankBanamex in 2001. This ever-proliferating array of offerings has enabled Citibank to attract a diversity ofcustomers and have high customer retention rates.

WeaknessesTarnished brand name

Although Citigroup has been one of Wall Streets strongest performers over recent years, and hasachieved strong shareholder value since its creation, its brand has been severely tarnished since 2002due to the ongoing investigations into its banking practices, particularly in its investment bankingsubsidiary, Salomon Smith Barney. After examinations into a number of Wall Street banks regarding

conflicts of interests, regulators indicated that Citigroup, due to wrongdoings at its Salomon Smith Barneyinvestment banking operation, will be hit with the hardest punishment, with the fine likely to be around$500 million. Although this is punishment for the group as a whole, particularly its investment bankingoperations, such a high-profile investigation sheds investor doubt over all practices of the group,ultimately also tarnishing the Citibank brand.

Online operations are geared towards US clients

Much of Citibanks online operatio ns are geared towards US clients. This is a major weakness inCitibanks armory, as it has worldwide operations, but not a sufficient Internet presence to compliment itsbranch business. In the increasingly competitive market that is online banking, Citibank needs to improveits online facilities for its international customers, or risk losing them to more dedicated companies.

Branding problems

Citigroup learned the hard way about the importance of branding for online operations. When its Internet-only bank operation, Citi f/i failed, part of the reason was because of poor branding tactics. Citigroupexecutives thought that by making Citi f/I completely separate from other banking operations, customerswould be more attracted to an Internet-only operation. For its payments business, the bank chose thename "c2it by Citibank". It wanted non-Citigroup customers to feel that they could use the service just asmuch as Citigroup customers could. Its success in the past taught the bank to make certain that the Citiname is leveraged as much as possible.

OpportunitiesGrowth markets

Citibank is continuingly focusing on growth markets. Although in some, less liberalized marketplaces riskis potentially higher, the bank has sought strategic positioning to attempt to reap the advantages of beingone of the first-to-market players. This is exemplified clearly by the launch in of retail banking operationsin Moscow. Although its presence to date remains minor, the bank is one of the first Western banks toseek a foothold in the country. The Russian banking market remains embattled and following the defaultsof domestic banks in 1998, much of the population prefer to keep their savings at home. However,Citibank is seeking to benefit on two fronts. Firstly, the Russian government is currently implementing anumber of liberalizing measures as condition for the countrys joining of WTO, which will drive the banksease of operation and the number of functions it is able to conduct. Secondly, as much of the population


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still express concerns over the financial foundations of domestic banks, including state owned Sberbank,Citibank can exploit its standing as a financial titan, offering securityto savings deposits.

Chinese market

In addition, and perhaps most significantly, Citibank is positioning itself within the fast liberalizing Chinesemarket. In April 2002 Citibank announced a deal of co-operation with Galaxy Securities, where it issharing expertise on securities and banking issues. Citigroup will wait until a relaxation in the Chineselaws before it can make a significant impact in the market, and will use Galaxy to leverage its full entry.

Online presence

Citibank is heavily focused on the US, its largest market. Often Citibank uses the US as a test market forvarious business ventures before expanding internationally. But it also has a number of initiatives in othercountries. The bank is now trying to integrate international capabilities with what it does in the US (B2Btransfers from one country to another, for example). Citibank recognizes that around the world theInternet is used differently from the way it is used in America. For instance, mobile telephony(WAP phones) is larger in other parts of the world such as Europe and Asia. Citibank has a number ofpilots in other countries that are centered on these WAP technologies. It has rolled out its online bankingservice, Citibank Online, across the globe and will continue to expand its online presence on a worldwidescale.

Click CitiCitibank felt that traditional credit cards did not necessarily meet all the needs that consumers had foronline shopping. Click Citi debuted as a niche product aimed at existing cardholders who were nervousabout revealing card information on the Web.

ThreatsForeign exchange fluctuations

Citibank, due to its geographical spread, can be rendered vulnerable to foreign exchange fluctuations andalso recessions in certain markets. At worst, for instance in Argentina and Brazil, this has landed Citibankwith substantial losses and increased provisions. In addition, exposure to high-risk sectors, includingtelecom and tech stocks, has led the bank to suffer sizable losses on its equity portfolios.

Market conditions

The company has been operating in tough market conditions, and its financial performance during thesetimes is testament to its strength. The last fiscal year was an extremely difficult operating environment forCitibank and other companies the longest bear market in a generation. Furthermore, a number ofcorporate revelations from a small number of companies tainted all of corporate America, putting the

company under more pressure.

Regulatory forces

The companys consumer finance business operates in a highly regulated environment. Thesebusinesses are subject to laws relating to consumer protection, discrimination in extending credit, use ofcredit reports, privacy matters, disclosure of credit terms and correction of billing errors. They also aresubject to certain regulations and legislation that limit operations in certain jurisdictions. For example,limitations may be placed on the amount of interest or fees that a loan may bear, the amount that may beborrowed, the types of actions that may be taken to collect or foreclose upon delinquent loans or the


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information about a customer that may be shared. Failure to comply with these laws and regulations maylimit the ability of the companys licensed lenders to collect or enforce loan agreements made with consumers and may cause Citibank to be liable for damages and penalties.

TOP COMPETITORS

The following companies are the major competitors of Citibank, N.A.:

Bank of America CorporationDeutsche Bank AG

Federal Reserve Bank of New YorkFranklin Resources, Inc.HSBC Holdings plcJP Morgan Chase & CoThe Advest Group, Inc.DVB Bank AGBT Financial GroupFirst Banks Inc.BankWestBendigo Bank Ltd.Banco BBM S.A.Corporation BankAmerican Business Bank


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HUMAN RESOURCE POLICIES


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Human Resources and Citi

Human resources is responsible for delivering attracting, retaining and developing talent. Driving the people management

aspects of the overall business strategy, Citis Human Resources professionals deliver superior: HR policy development,

strategic HR advice, reward and retention programs, management of employee relations, resourcing, learning and development,

and compensation and benefits.

How Are We Structured?

The HR function is organized into Specialist and Business Partner teams that work together to provide a comprehensive world-

class service for our clients.

Business Partners by business area and countries Reward and Mobility Employee Relations, Engagement & Diversity

Talent Resourcing and Development Strategy, Planning & Reengineering Citi Employee Services

Citi has clearly articulated the principles that have guided us for the past 200 years and will continue to guide our values as wemove forward. These principles are:

Common Purpose One team, with one goal: serving our clients and stakeholders.

Responsible Finance Conduct that is transparent, prudent and dependable.

Ingenuity Enhancing our clients lives through innovation that harnesses the breadth and depth of our information, globalnetwork and world-class products.

Leadership Talented people with the best training who thrive in a diverse meritocracy that demands excellence,initiative and courage.

Our Conduct in the WorkplaceWe aspire to be a meritocracy composed of talented people who consistently demonstrate excellence, initiative and courage.Therefore, we must provide our people with the best opportunities to realize their potential and champion our remarkablediversity. At all times, we must treat our teammates with respect, share the responsibility for our successes and acceptaccountability for our failures.


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Privacy for Citis Workforce

Citi seeks to protect the personal and confidential information it collects, uses and maintains about its workers, includingmedical information. Such information must not be shared or discussed outside of Citi, except where permitted or required byapplicable law or regulation, or pursuant to a subpoena or order issued by a court of competent jurisdiction, or requested by a judicial, regulatory, administrative or legislative body. You must comply with all Citi policies and guidelines relating to securand privacy of personal and confidential information, and ensure that such information is only shared with authorizedindividuals. Responses to requests for such information may be provided only as permitted by applicable Citi policy, law or regulation.

Workforce guidelines for privacy and security cover Citi employees as well as other individuals whose information is provided Citi within the context of the working relationship. When we use other companies to provide services for us, we require them toprotect the personal and confidential information they receive about our workforce.

We may process information about our workforce globally, including in locations other than the workplace. In doing this, wefollow applicable law in connection with collecting, sending, storing and using such information.

Fair Employment Practices and Diversity

Citi believes that diversity in our staff is critical to our success as a global organization, and we seek to recruit, develop andretain the most talented people from a diverse candidate pool. Advancement at Citi is based on merit. We are fully committedto equal employment opportunity and compliance with the letter and spirit of the full range of laws regarding fair employmenpractices and nondiscrimination.

Discrimination and Harassment

Citi promotes a work environment where diversity is embraced and where our differences are valued and respected. We prohibidiscrimination, harassment or intimidation that is unlawful or otherwise violates our policies, whether committed by or against manager, co-worker, client, supplier or visitor.

Safety in the Workplace

The safety and security of our workplace is a primary concern of Citi. Each of us must comply with applicable health andsafety policies. Threats or acts of violence in the workplace will not be tolerated and should be reported immediately. Wemaintain compliance with local and international laws, and internal guidelines have been developed to help maintain secureand healthy work surroundings. Questions about these laws and guidelines should be directed to your manager, HumanResources representative or CSIS.


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Citibanks Performance ScorecMeasurements Below

Par

Par Above

Par

Standards Managers assessment

Leadership,

Ethics/Integrity

Customer Interaction

Community Involvement

Contribution to Overall Business

People Managers assessment

Performance

Teamwork

Training & Development

Employee Satisfaction

Control Auditors standards

Audit

Legal

Regulatory


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Citibanks Performance Scorecard..

Measurements Below

Par

Par Above

Par

Customer Satisfaction External company surveyGoal of 80%

Strategy Implementation Objective standards

Households

Cross-sell, splits, mergers

Retail asset balances

Market shareFinancial Objective stadards

Revenue

Expense

Margin

Technology Infrastructure and Development

Look at the way the world of banking operates. This is a highly competitive, extremely fast-moving marketplace where second

matter and change never stops. Surety of infrastructure, speed of execution, the ability to automate and innovate, the drive to

improve predictability, the desire to take what is and make it what it could be technology sits at the very epicentre of Citi. It

helps to shape, create and build our advantage and our future.

Technology is led by intelligent people who understand the market both from a technology team and business team which

create opportunities to launch more improved products.


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You can be part of this. Imagine working on projects that cross countries and continents. Developing systems that change the

way we work. Supporting infrastructure that drives million-dollar transactions every second. Deploying technology that is the

latest and most sophisticated around. Delivering algorithmic trading strategies connected to 29 markets across Europe, Asia

and North America. And building a career that could go in many different directions, In EMEA and even beyond. That is the

opportunity.To build the digital bank of the future

How are We Structured?

Human Resources allows for cross-business exposure across different Citi Business Groups (Consumer Banking, Cards,

Institutional Clients Group and Corporate Functions) and various HR functions, including; Health and Benefits, Employee

Relations, Learning and Development, Talent & Performance Management, Diversity Management, Staffing & Recruitment, an

HR Systems & Technology.


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ECONOMIC ANALYSIS


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FINANCIAL ANALYSIS

ParticularsAs at 31st March

2008As at 31st March


2010


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in Cr in Cr in CrIncome

Interest Earned 601.15 804.4 956.61Other Income 90.28 123.68 143.5Total Income 691.43 928.08 1100.11

ExpenditureInterest Expended 396.18 561.83 678.47

Employee Cost 47.9 64.97 80.12Selling & Admin Expenses 57.44 70.08 98.75

Depriciation 14.8 15.94 13.58Misc Expenses 73.38 93.12 76.42

Preoperative Exp Capitalised 0 0 0Operating Expenses 136.76 173.02 217.34

Provisions & Contigencies 56.76 71.09 51.53

Total Expenses 589.7 805.94 947.34




2010Net Profit for the year 101.73 122.13 152.76

Extra ordinary item 0 0 0Profit brought forward 0.07 4.87 5.01

Total 101.8 127 157.77

Preference Dividend 0 0 0Equity Dividend 16 24 30

Corporate Dividend Tax 2.72 4.08 4.98Per share data (annualised)

Earnings per share (Rs) 3.18 3.82 3.83Equity Dividend % 50 75 75

Book Value (Rs) 17.71 20.65 20.68

AppropriationsTransfer to statuatory Reserves 28.72 56.92 50.24

Transfer to Other Reserves 49.48 37 67Proposed Dividend/Transfer to Govt 18.72 28.08 34.98

Balance c/f to Balance Sheet 4.87 5.01 5.55Total 101.79 127.01 157.77

BALANCE SHEET OF CITIBANK FOR 2008, 2009 & 2010


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2010 DifferenceVerticalAnalysis

Capital & Liabilities In Cr In CrTotal Share Capital 32 39.96 7.96 20%

Equity Share Capital 32 39.96 7.96 20%

Share Aplication Money 0 0 0 0%Prefernce Share Capital 0 0 0 0%

Reserves 660.92 825.64 164.72 20%Revaluation reserves 0 0 0 0%

Net Worth 660.92 825.64 164.72 20%Deposits 8206.77 10284.59 2077.82 20%

Borrowings 0.15 40.03 39.88 100%Total Debt 8206.77 10324.62 2117.85 21%

Other Asset & Liabilities 383.32 409.15 25.83 6%

Total Liabilities 9251.01 11559.41 2308.4 20%

AssetsAs at 31st March


2010 DifferenceVerticalAnalysis

Cash & Balances with RBI 595.32 868.53 273.21 31%Money at call 289.76 231.63 -58.13 -25%

Advances 5645.25 6833.46 1188.21 17%

Investments 2397.46 3210.43 812.97 25%Gross Block 111.23 146.56 35.33 24%

AccumulatedDepreciation 69.94 83.52 13.58 16%

Net Block 41.29 63.04 21.75 35%Capital work in progress 0 0 0 0%

Other Assets 281.91 352.31 70.4 20%

Total Assets 9250.99 11559.4 2308.41 20%Contigentant Liability 3848.81 2158.85 -1689.96 -78%

Bills for Collection 576.42 700.79 124.37 18%

Book Value 20.65 20.68 0.03 0%

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