ORIGIN &
HISTORY
Citibank was founded in 1812 as the City Bank of New York,
later First National City Bank of New York. As of 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
Citibank, a major international bank, is the consumer banking arm
of financial services giant Citigroup
Following its merger with the First National Bank in 1955, the bank changed
its name to The First National City Bank of New York, then shortened it to
First National City Bank in 1962.
The company organically entered the leasing and credit card sectors, and its
introduction of US dollar denominated certificates of deposit in London marked
the first new negotiable instrument in the market since 1888. Later to become
part of MasterCard, the bank introduced its
First National City Charge
Service credit card – popularly known as the "Everything Card" –
in 1967.
In 1976, under the leadership of CEO Walter B. Wriston, First National City
Bank (and its holding company First National City Corporation) was renamed
Citibank, N.A. (and Citicorp, respectively). By that time, the bank had created
its own "one-bank holding company" and had become a wholly owned
subsidiary of that company, Citicorp (all shareholders of the bank had become
shareholders of the new corporation, which became the bank's sole owner).
The name change also helped to avoid confusion in
Ohio with
Cleveland-based
National City Bank, though the two would never
have any significant overlapping areas except for Citi credit cards being
issued in the latter National City territory. (In addition, at the time of the
name change to Citicorp, National City of Ohio was mostly a Cleveland-area bank
and had not gone on its acquisition spree that it would later go on in the
1990s and 2000s.) Any possible name confusion had Citi not changed its name
from National City eventually became completely moot when
PNC Financial Services acquired the National
City of Ohio in 2008 as a result of the
subprime mortgage crisis.
Problems Faced During Recession
As a result of the
global financial crisis of
2008–2009 and huge losses in the value of its subprime mortgage assets,
Citibank was rescued by the U.S. government under plans agreed for Citigroup.
On November 23, 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.
[2] Since this time,
Citibank has repaid its government loans in full
Citibank has retail banking operations in more than 100 countries and
territories around the world. 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. and
Miami.
More recently, Citibank has expanded its operations in the
Boston,
Philadelphia,
Houston, and
Dallas metropolitan
areas.
Subsidiaries
·
Citibank, N.A.(National Association) – The "original"
Citibank, primarily doing business in New York State and the tri-state
New York metropolitan area. Also the
parent company of the other subsidiaries.
[14]
·
Citibank Canada – One of Canada's longest-serving
foreign banks, currently with 3,400 employees from coast to coast.
·
Citibank Texas, N.A. – The former First American bank.
[14]
·
Citibank (West), F.S.B. – The former Citicorp Savings (a
savings
and loan operating in California), as well as the former California Federal
Bank and Golden State Bank.
[14]
·
Citibank, F.S.B. – The primary Citibank subsidiary serving all other
states, based in Chicago.
[14]
·
Citibank Banamex USA – Formally California Commerce Bank, Banamex's U.S.
banking division.
· Citibank (South Dakota),
Citibank sponsors the Greek football club
Olympiacos
F.C. as well as
Citi Field in New York.
Citibank became a major sponsor of the
Sydney
Swans in 2005, who play in the
AFL..
- Citi
began operations in India over a century ago in 1902 in Kolkata
- Citi is
the largest foreign direct investor in financial services in India with a
total capital commitment of approximately US$4 billion in its onshore
banking and financial services business and its principal and alternate
investment programs
- As
promoter-shareholder, Citi has played a leading role in establishing
important market intermediaries such as depositories, credit bureau,
clearing and payment institutions
- Citi
operates 42 full-service Citibank branches in 30 cities and over 700 ATMs
across the country
- Citi is
an employer of choice to about 7000 people
- Citi is
the preferred banker to more than 40,000 small and mid-sized companies
across India
- Citi
helped lay the foundation of the Indian software industry by establishing
Citicorp Overseas Software Limited and Iflex Solutions Limited. Citi
pioneered the ITES industry in financial services through Citigroup Global
Services Limited (CGSL). Oracle acquired Iflex in 2005 and CGSL was
acquired by Tata Consultancy Services in 2008
Products & Services :
Banking
Credit Cards :
·
Shopping
·
Travel
·
Fuel
·
Lifestyle
·
Others
·
Cash Back
Prepaid Cards
CITI Loans
Online Services
Customer Services
NRI Products
Financial reports
Profit after tax from India business expanded 35 per cent in 2011-12 to Rs
1,922 crore from Rs 1,424 crore a year ago.
A growth in assets, driven by commercial banking and mortgage businesses,
and consumer banking operations aided the increase in earnings.
Total assets of Citibank India rose 15 per cent to Rs
128,428 crore during the year. Deposits increased 14 per cent to Rs 64,698
crore. The share of low-cost current account savings account deposit was 55 per
cent of total deposits. Total assets, including credit extended to Indian
institutional and non-resident Indian clients from offshore branches, stood at
Rs 182,256 crore at the end of March, representing 18 per cent increase over
the previous year.
The foreign lender’s asset quality also improved with net non-performing
loan ratio narrowing to 0.9 per cent in 2011-12 from 1.2 per cent a year ago.
Citibank closed the last financial year with a capital adequacy ratio of 16.03
per cent.
Citi, which has a network of 42 branches in 30 cities, increased the number
of ATMs in India to over 700.
Citi helped Indian clients raise close to $16 billion from equity and debt
capital market transactions and advised on merger and acquisition deals worth
$12 billion. It had 13.7 per cent of company foreign exchange flows and 8.84
per cent of company trade flows.
Citigroup Net Income
(in billions of dollars)
$(1.6) $10.6 $11.1
2010
2011
2009
Citigroup Tier 1 Capital
Ratio
11.7% 12.9% 13.6%
2010
2011
2009
Expenses rose by $3.6
billion in 2011. Approximately
two-thirds of that was
owing to the impact of foreign
exchange and nonoperating
expenses such as increased
legal and repositioning
charges. Factoring those out, expenses
rose by $1.0
billion, or 2.0%, driven by investments.
My
observation on factors for success of CITI BANK
·
Universal banking strategy
·
Citibank has been one of the early adopters of a
universal banking strategy.
·
The bank has leveraged the changing demographic profile
in India by targeting the attractive retail-banking segment.
·
Citibank was a pioneer in consumer banking, being
one of the first to introduce focused consumer lending programs and electronic
banking.
Market Share
In 2010-11, Citi helped its Indian clients raise close to $16 billion of
equity and debt capital. In this segment, the bank’s market share stood at 14
per cent. "Citi remained integrally connected to the trade and capital
flows in the region, touching 16 per cent of nationwide foreign exchange flows
and eight per cent of trade flows," the bank said.
Mumbai: Global banking major Citibank
today said it is targeting to increase its market share in the newly identified
'emerging affluent' segment from 10 per cent to 15 per cent.
The
segment christened 'emerging affluent' involves those with income levels
ranging from Rs 3 lakh to Rs 15 lakh, which was under-served by the bank but
which it would now target following a detailed survey.
Courtesy
its corporate salary accounts product, the bank already caters to around 10 per
cent of the estimated 1.6 crore people who fall under the category and is
targeting to take it to 15 per cent in the next two to three years, its
Business Head for Retail Banking Sandeep Bhalla told reporters here.
For doing
so, the bank announced a slew of freebies, including free withdrawals at any
ATM (automated teller machine) across the world, waiver of fees on facilities
like issuing demand drafts and emergency cash assistance
Market
Penetration:
- With a base of more than
2,000 clients, Citi is the largest foreign bank in India
- Citi India FX market share:
14% … estimated to be largest among all players in India
- Courtesy its corporate
salary accounts product, the bank already caters to around 10 per cent of
the estimated 1.6 crore people who fall under the category and is
targeting to take it to 15 per cent in the next two to three years.
Awards
At Citi, we strive to be a trusted partner to all of our clients worldwide,
helping them to achieve their goals and make their businesses more efficient.
And while citi believe that its clients benefit from these efforts, CITI is
gratified to see that others think so too.
Below you will find a list of the awards that we have won this year. Click
on each one for more information about it.
·
Recent Awards
Awards 2012
·
FinanceAsia
Country Awards 2012
·
Best Foreign Investment Bank in India (for
the 6th consecutive year)
·
Indo-American
Corporate Excellence Award 2012
·
Best US Company operating in India in
Financial Services Category
·
IAMAI
India Digital Awards 2011
·
Best Financial Website
·
The
Asian Banker Excellence in International Retail Financial Services Awards 2012
·
Best Network Integration
Awards 2011
·
FinanceAsia
Country Achievement Awards
·
Best Foreign Investment Bank in India (for
the 5th consecutive year)
·
Euromoney
Awards for Excellence 2011
·
Best Equity House India
·
Asiamoney
Fixed Income Poll 2011
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Overall Best for Credit
·
Overall Best for Interest Rates
·
Euromoney
FX Poll 2011
·
CitiFX Pulse was named the'Most Effective
Risk Management Tool'
·
CitiFX Services were ranked No. 1 in India
·
Global
Finance Best Internet Banks in Asia 2011
·
Best Consumer Internet Bank
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Best Corporate/Institutional Internet Bank
·
Bombay
Chamber of Commerce and Industry
·
Supporter of Art, Culture and Heritage, 2011
·
Asiamoney
FX Poll 2011 (voted by FIs and Corporates)
·
Best for Overall FX Services
·
Dun
& Bradstreet Banking Award 2011
·
Best SME Bank for 2011(under the Foreign Bank
category)
·
Brand
Equity Most Trusted Brands Survey 2011
·
Most Trusted Foreign Bank
·
Asian
Investor Service Provider Awards 2011
·
Best Direct Custody, India
·
The
Asset Asset Triple A Country Awards 2011
·
Best Foreign Investment Bank (for the 8th
consecutive year)
·
Key Milestones of Citigroup:
• Mortgage Services: Citibank was the first
to launch Home Credit (in 1990), a facility to utilise surplus funds to save
interest and PAM (Preserved Asset Mortgage), a 100 per cent home loan with security
in equity, mutual funds, etc.
• Auto Loans: Citibank pioneered organised
auto financing in India in August 1986.
• Personal Loans: Citibank entered this
business in 1989 and is considered a pioneer in this segment with a healthy
market share of 24 per cent with expansion through various innovative products.
• Internet Banking: Citibank also provided
India’s first and most comprehensive Internet Banking service covering both
resident and NRI customers, with a ‘single-glance statement’ enabling customers
to get complete information on all their banking relationships. The bank has
enabled Internet banking for corporates as well.
• Citibank was the largest mobiliser of funds
by non–public sector bank (second after the StateBank of India) for the Resurgent India Bonds (RIB) 1998 and the India Millennium Deposit (IMD), 2000 sourcing US$ 830 million and US$ 840 million
respectively.
Future plans
India is one of the
priority countries for Citigroup and as a reaffirmation of this commitment; it
retained the entire earnings for 2003-2004 as capital in India for further
growth. As part of its strategic plan, Citigroup plans to grow organically as
well as inorganically in India. Using the
organic mode, it plans to
double its footprint in India in the next five years. It will also look at the
acquisition route as and when regulations change and market opportunities
arise. Citibank plans to enter every line of business, and is launching
products and services to expand the market for consumer financial services
Environmental
sustainability
Citi’s commitment to environmental
sustainability in its
own operations and with its clients is based on three pillars:
managing the environmental footprint of its own
global operations; managing environmental and social
risk associated with projects citi finance; and
developing business opportunities
with its partners to address critical environmental
issues. In 2011, Citi financed and advised on nearly 14,000 megawatts of wind
and solar power projects worldwide, pioneered
transactions in energy efficiency finance, and, as chair of the Equator
Principles Association, led the industry
in updating standards for environmental and social risk management practices.
In citi’s own operations and its work with clients, the bank is dedicated
to supporting solutions that address
climate change, water scarcity, decline biodiversity,
human rights and other important challenges.
CSR at CITI
Globally,
Citi supports the economic empowerment and financial inclusion of low-to
moderate-income people in communities where Citi operates. We work
collaboratively with a range of partners to design and test financial inclusion
innovations with potential to achieve scale. We also seek to support leadership
and knowledge building activities. We put the strength of our business,
resources, products and people to work to help improve communities. We describe
this as a "More-than-Philanthropy approach", which includes support
for collaborative problem solving, program development and skill-based
volunteering.
One key
way in which we engage with the community is through the Citi Foundation. The
Citi Foundation is committed to enhancing economic opportunities for
individuals and families, particularly those in need, in the communities where
we work so that they can improve their standard of living. Citi Foundation
focuses its strategic giving on the following key areas:
- Financial Capability and
Asset Building -
Increases in the number of low-to-moderate income adults and/or youth who
adopt positive financial behaviors and accumulate and preserve financial
assets.
- Microfinance - Increases in the supply
of financial products that improve and accelerate the financial inclusion
of low-to-moderate income individuals.
- Enterprise Development - Increases in the number
of micro or small enterprises that provide new income generation and/or
employment opportunities for low-to-moderate income individuals
Some citi group CSR initiatives in year 2012 are as follows :
Jun 16
May 26
Jan 04