Profile: Citigroup Inc (C.N)
26 Dec 2014
Citigroup Inc. (Citigroup), incorporated on March 8, 1988, is a global diversified financial services holding company whose businesses provide consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management. The Company operates in two segments: Citicorp, consisting of the Company’s Global Consumer Banking businesses and Institutional Clients Group, and Citi Holdings, consisting of Brokerage and Asset Management, Local Consumer Lending and Special Asset Pool. In February 2012, it sold its 9.85% interest in Housing Development Finance Corporation Ltd. In May 2012, it sold 10.1% interest in Akbank T.A.S. In September 2012, the Company sold EMI Group’s recorded music division, EMI Music, to Vivendi and subsidiary, Universal Music Group. In August 2013, Pershing Square Capital Management sold 18% interest to Citigroup Inc.
Global Consumer Banking
Global Consumer Banking (GCB) consists of Citigroup’s four geographical Regional Consumer Banking (RCB) businesses that provide traditional banking services to retail customers through retail banking, commercial banking, Citi-branded cards and Citi retail services. GCB is a globally diversified business with 4,008 branches in 39 countries around the world. As of December 31, 2012, GCB had $322 billion of average deposits.
North America Regional Consumer Banking (NA RCB) provides traditional banking and Citi-branded cards and Citi retail services to retail customers and small to mid-size businesses in the United States. NA RCB’s approximate 1,000 retail bank branches as of December 31, 2012, are concentrated in the metropolitan areas of New York, Los Angeles, San Francisco, Chicago, Miami, Washington, D.C., Boston, Philadelphia, Dallas, Houston, San Antonio and Austin. As of December 31, 2012, NA RCB had approximately 12.4 million customer accounts, $42.7 billion of retail banking loans and $165.2 billion of deposits. In addition, NA RCB had approximately 102.1 million Citi-branded and Citi retail services credit card accounts, with $111.5 billion in outstanding card loan balances.
EMEA Regional Consumer Banking (EMEA RCB) provides traditional banking and Citi-branded card services to retail customers and small to mid-size businesses, primarily in Central and Eastern Europe, the Middle East and Africa. The countries in which EMEA RCB has the presence are Poland, Turkey, Russia and the United Arab Emirates. As of December 31, 2012, EMEA RCB had 228 retail bank branches with 3.9 million customer accounts, $5.1 billion in retail banking loans and $13.2 billion in deposits. In addition, the business had 2.8 million Citi-branded card accounts with $2.9 billion in outstanding card loan balances.
Latin America Regional Consumer Banking (Latin America RCB) provides traditional banking and Citi-branded card services to retail customers and small to mid-size businesses, with the presence in Mexico and Brazil. Latin America RCB includes branch networks throughout Latin America, as well as Banco Nacional de Mexico (Banamex), Mexico’s bank, with over 1,700 branches. As of December 31, 2012, Latin America RCB had 2,181 retail branches, with approximately 31.8 million customer accounts, $28.3 billion in retail banking loans and $48.6 billion in deposits. In addition, the business had approximately 12.9 million Citi-branded card accounts with $14.8 billion in outstanding loan balances.
Asia Regional Consumer Banking (Asia RCB) provides traditional banking and Citi-branded card services to retail customers and small to mid-size businesses, with the Citi presence in Korea, Australia, Singapore, Japan, Taiwan, Hong Kong, India and Indonesia. As of December 31, 2012, Asia RCB had approximately 600 retail branches, 16.9 million customer accounts, $69.7 billion in retail banking loans and $110 billion in deposits. In addition, the business had approximately 16.0 million Citi-branded card accounts with $20.4 billion in outstanding loan balances.
Institutional Clients Group
Institutional Clients Group (ICG) includes Securities and Banking and Transaction Services. ICG provides corporate, institutional, public sector and high-net-worth clients around the world with a range of products and services, including cash management, foreign exchange, trade finance and services, securities services, sales and trading of loans and securities, institutional brokerage, underwriting, lending and advisory services. ICG’s international presence is supported by trading floors in approximately 75 countries and jurisdictions and a proprietary network within Transaction Services in over 95 countries and jurisdictions. As of December 31, 2012, ICG had approximately $1.1 trillion of assets and $523 billion of deposits.
Securities and Banking (S&B) offers a range of investment and commercial banking services and products for corporations, governments, institutional and public sector entities, and high-net-worth individuals. S&B transacts with clients in both cash instruments and derivatives, including fixed income, foreign currency, equity, and commodity products. S&B includes investment banking and advisory services, lending, debt and equity sales and trading, institutional brokerage, derivative services and private banking.
Transaction Services is consists of Treasury and Trade Solutions and Securities and Fund Services. Treasury and Trade Solutions provide cash management and trade finance services for corporations, financial institutions and public sector entities worldwide. Securities and Fund Services provides securities services to investors, such as global asset managers, custody and clearing services to intermediaries, such as broker-dealers, and depository and agency/trust services to multinational corporations and governments globally. Revenue is generated from net interest revenue on deposits and trade loans, as well as fees for transaction processing and fees on assets under custody and administration.
Brokerage and Asset Management
Brokerage and Asset Management (BAM) primarily consists of Citigroup’s remaining investment in, and assets related to, MSSB. As of December 31, 2012, BAM had approximately $9 billion of assets, or approximately 6% of Citi Holdings assets, of which approximately $8 billion related to MSSB. During 2012, BAM’s assets declined 67% due to the decline in assets related to MSSB. As of December 31, 2012, the MSSB assets were consists of an approximate $4.7 billion equity investment and $3 billion of other MSSB financing (consisting of approximately $2 billion of preferred stock and $1 billion of loans).
Local Consumer Lending
Local Consumer Lending (LCL) includes a substantial portion of Citigroup’s North America mortgage business, CitiFinancial North America (consisting of the OneMain and CitiFinancial Servicing businesses), remaining student loans and credit card portfolios, and other local consumer finance businesses globally (including Western European cards and retail banking and Japan Consumer Finance). As of December 31, 2012, LCL consisted of approximately $126 billion of assets (with approximately $123 billion in North America), or approximately 81% of Citi Holdings assets, and thus represents the segment within Citi Holdings. The North America assets primarily consist of residential mortgages (residential first mortgages and home equity loans), which stood at $92 billion as of December 31, 2012.
Special Asset Pool
The Special Asset Pool (SAP) consists of a portfolio of securities, loans and other assets that Citigroup intends to continue to reduce over time through asset sales and portfolio run-off. SAP had approximately $21 billion of assets as of December 31, 2012, which constituted approximately 13% of Citi Holdings assets.
Corporate/Other includes unallocated global staff functions (including finance, risk, human resources, legal and compliance). It also includes other corporate expenses and unallocated global operations and technology expenses, Corporate Treasury and discontinued operations.
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