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Citigroup Inc.
212
559 1000.
399
Park Avenue
New
York, NY 10043
www.citigroup.com
Sales
$95
billion
Business Description
Citigroup Inc. (Citigroup and, together with its subsidiaries, the Company)
is a diversified global financial services holding company whose businesses
provide a broad range of financial services to consumer and corporate
customers with some 200 million customer accounts doing business in more
than 100 countries.
The Company's activities are conducted through the Global Corporate and
Investment Bank (GCIB), Global Consumer, Private Client Services,
Global Investment Management (GIM) and Proprietary Investment Activities
business segments.
The Company has completed certain strategic business acquisitions during the
past three years, details of which can be found in Note 2 to the
Consolidated Financial Statements.
The Company is a bank holding company within the meaning of the U.S. Bank
Holding Company Act of 1956 registered with, and subject to examination by,
the Board of Governors of the Federal Reserve System (FRB). Certain of the
Company's subsidiaries are subject to supervision and examination by their
respective federal and state authorities. Additional information on the
Company's regulation and supervision can be found within the Regulation and
Supervision section beginning on page 122.
At December 31, 2003, the Company had approximately 134,000 full-time and
6,000 part-time employees in the United States and approximately 119,000
full-time employees outside the United States.
GLOBAL CORPORATE AND INVESTMENT BANK
Global Corporate and Investment Bank (GCIB) provides corporations,
governments, institutions and investors in approximately 100 countries with
a broad range of financial products and services. GCIB includes Capital
Markets and Banking, Transaction Services and Other Corporate.
Capital Markets and Banking offers a wide array of investment and commercial
banking services and products, including investment banking, debt and equity
trading, institutional brokerage, advisory services, foreign exchange,
structured products, derivatives, and lending.
Transaction Services is composed of Cash Management, Trade Services and
Global Securities Services (GSS). Cash Management and Trade Services provide
comprehensive cash management and trade finance for corporations and
financial institutions worldwide. GSS provides custody services to investors
such as insurance companies and pension funds, clearing services to
intermediaries such as broker/dealers and depository and agency/trust
services to multinational corporations and governments globally.
PRIVATE CLIENT SERVICES
Private Client Services provides investment advice, financial planning and
brokerage services to affluent individuals, small and mid-size companies,
non-profits and large corporations primarily through a network of more than
12,200 Smith Barney Financial Consultants in more than 500 offices
worldwide. In addition, Private Client Services provides independent
client-focused research to individuals and institutions around the world.
A significant portion of Private Client Services revenue is generated from
fees earned by managing client assets as well as commissions earned as a
broker for its clients in the purchase and sale of securities. Additionally,
Private Client Services generates net interest revenue by financing
customers' securities transactions and other borrowing needs through
security-based lending. Private Client Services also receives commissions
and other sales and service revenues through the sale of proprietary and
third-party mutual funds. As part of Private Client Services, Global Equity
Research produces equity research to serve both institutional and individual
investor clients. The majority of expenses for Global Equity Research are
allocated to the Global Equities business within GCIB and Private Client
Services businesses.
GLOBAL CONSUMER
Global Consumer delivers a wide array of banking, lending, insurance and
investment services through a network of local branches, offices and
electronic delivery systems, including ATMs, Automated Lending Machines (ALMs)
and the World Wide Web. The Global Consumer businesses serve individual
consumers as well as small businesses. Global Consumer includes Cards,
Consumer Finance and Retail Banking.
Cards provides MasterCard, VISA and private label credit and charge cards.
North America Cards includes the operations of Citi Cards, the Company's
primary brand in North America, and Mexico Cards. International Cards
provides credit and charge cards to customers in Europe, the Middle East and
Africa (EMEA), Japan, Asia and Latin America.
Consumer Finance provides community-based lending services through branch
networks, regional sales offices and cross-selling initiatives with other
Citigroup businesses. The business of CitiFinancial is included in North
America Consumer Finance. As of December 31, 2003, North America Consumer
Finance maintained 2,328 offices, including 2,082 CitiFinancial offices in
the U.S. and Canada, while International Consumer Finance maintained 875
offices, including 552 in Japan. Consumer Finance offers real-estate-secured
loans, unsecured and partially secured personal loans, auto loans and loans
to finance consumer-goods purchases. In addition, CitiFinancial, through
certain subsidiaries and third parties, makes available various
credit-related and other insurance products to its U.S. customers.
Retail Banking provides banking, lending, investment and insurance services
to customers through retail branches and electronic delivery systems. In
North America, Retail Banking includes the operations of Citibanking North
America, Consumer Assets, CitiCapital, Primerica Financial Services
(Primerica), and Mexico Retail Banking. Citibanking North America delivers
banking, lending, investment and insurance services through 779 branches in
the U.S. and Puerto Rico and through Citibank Online, an Internet banking
site on the World Wide Web. The Consumer Assets business originates and
services mortgages and student loans for customers across the U.S. The
CitiCapital business provides leasing and equipment financing products to
small- and middle-market businesses. The business operations of Primerica
involve the sale, mainly in North America, of life insurance and other
products manufactured by its affiliates, including Smith Barney mutual
funds, CitiFinancial mortgages and personal loans and the products of our
Life Insurance and Annuities business. The Primerica sales force is composed
of over 100,000 independent representatives. Mexico Retail Banking consists
of the branch banking operations of Banamex. International Retail Banking
provides full-service banking and investment services in EMEA, Japan, Asia,
and Latin America. The Commercial Markets Group is included in Retail
Banking and consists of the operations of CitiCapital, as well as
middle-market lending operations in North America and the international
regions.
GLOBAL INVESTMENT MANAGEMENT
Global Investment Management (GIM) offers a broad range of life insurance,
annuity, asset management and personalized wealth management products and
services distributed to institutional, high-net-worth and retail clients.
Global Investment Management includes Life Insurance and Annuities, Private
Bank and Asset Management.
Life Insurance and Annuities comprises Travelers Life and Annuity (TLA) and
International Insurance Manufacturing (IIM). TLA offers individual annuity,
group annuity, individual life insurance and Corporate Owned Life Insurance
(COLI) products. The individual products include fixed and variable deferred
annuities, payout annuities, and term, universal, and variable life
insurance. These products are primarily distributed through CitiStreet
Retirement Services (CitiStreet), Smith Barney, Primerica, Citibank and
affiliates, and a nationwide network of independent agents and the outside
broker dealer channel. The COLI products are variable universal life
products distributed through independent specialty brokers. The group
products include institutional pensions, including guaranteed investment
contracts (GICs), payout annuities, group annuities sold to
employer-sponsored retirement and savings plans, structured settlements and
funding agreements. IIM provides annuities, credit, life, health, disability
and other insurance products internationally, leveraging the existing
distribution channels of the Consumer Finance, Retail Banking and Asset
Management (retirement services) businesses. IIM has operations in Mexico,
Asia, EMEA, Latin America and Japan. TLA and IIM include the realized
investment gains/(losses) from sales on certain insurance-related
investments.
Private Bank provides personalized wealth management services for
high-net-worth clients through 126 offices in 37 countries and territories,
generating fee and interest income from investment funds management, client
trading activity, trust and fiduciary services, custody services, and
traditional banking and lending activities. Through its Private Bankers and
Product Specialists, Private Bank leverages its extensive experience with
clients' needs and its access to Citigroup to provide clients with
comprehensive investment and banking services.
Asset Management includes Citigroup Asset Management, Citigroup Alternative
Investments Institutional business, Banamex asset management and retirement
services businesses and Citigroup's other retirement services businesses in
North America and Latin America. These businesses offer institutional,
high-net-worth and retail clients a broad range of investment alternatives
from investment centers located around the world. Products and services
offered include mutual funds, closed-end funds, separately managed accounts,
unit investment trusts, alternative investments (including hedge funds,
private equity and credit structures), variable annuities through affiliated
and third-party insurance companies, and pension administration services.
PROPRIETARY INVESTMENT ACTIVITIES
Proprietary Investment Activities is comprised of Citigroup's proprietary
Private Equity investments and Other Investment Activities which includes
Citigroup's proprietary investments in hedge funds and real estate
investments, investments in countries that refinanced debt under the 1989
Brady Plan or plans of a similar nature, ownership of Travelers Property
Casualty Corp. shares and Citigroup's Alternative Investments (CAI)
business, for which the net profits on products distributed through
Citigroup's Asset Management, Private Client Services and Private Bank
businesses are reflected in the respective distributor's income statement
through net revenues.
CORPORATE/OTHER
Corporate/Other includes net corporate treasury results, corporate expenses,
certain intersegment eliminations, the results of discontinued operations,
the cumulative effect of accounting changes and taxes not allocated to the
individual businesses.
INTERNATIONAL
Citigroup International (whose operations are fully reflected in the product
disclosures above) serves 54 million customer accounts in approximately 100
countries, working in partnership with the Company's product organizations.
Citigroup International is organized by region—Asia, EMEA, Japan, and Latin
America. Citigroup has a long history in each of these regions, including
more than 100 years in a number of countries. The markets we serve account
for 85% of the world's population and 65% of its GDP.
In Asia in 2003, consumer growth was driven by new wealth management
initiatives and expanding credit card activities. In large and growing
markets like India and China, we are well-positioned to build market share
across the spectrum of consumer products. In January 2003, we established a
strategic alliance with the Shanghai Pudong Development Bank, which led in
February 2004 to the issuance of a dual currency credit card in China, in
cooperation with Citibank. The GCIB continued to gain market share with new
products, expansion of our customer base, and significant deals such as the
underwriting of China Life's $3 billion Initial Public Offering.
EMEA's earnings were driven by increased sales and substantial cost
reduction. The GCIB had strong market share gains, ranking number one in the
region in debt and equity underwriting. Retail Banking is our largest
consumer business, with a strong presence particularly in Germany. A
highlight was the launch of our credit card in Russia, and we continue to
expand our consumer offerings in Poland, Italy and Spain. Citigroup also
introduced wealth management programs in countries in Eastern Europe and the
Middle East.
Citigroup is Japan's number one foreign corporate bank and consumer bank,
and one of the largest consumer finance firms. Nikko
Citigroup, our investment banking joint venture, was one of Japan's top
equity underwriters and in 2003, was the top mergers and acquisitions
advisor in Japan, advising on the Japan Telecom and Resona transactions. Our
Private Bank and joint venture with Mitsui Sumitomo Insurance are
fast-growing market leaders.
Citigroup's Latin America operations returned to profitability in 2003.
Citigroup has been a leader for 90 years in Latin America, a region that is
once again attracting investment. We implemented a successful repositioning
of our business in the region that is expected to achieve positive results
by aligning investment with the greatest opportunities for returns. In
Brazil, we launched a consumer finance business targeting the large retail
credit market and opened nine branches in São Paulo. Citigroup concluded the
first-ever Venezuela domestic liability management transaction, completed
Costa Rica's first international syndication, and acted as deal manager and
global coordinator of the landmark $5.3 billion bond swap for Uruguay.
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