Citibank 2005 Annual Report Download

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2005 ANNUAL REPORT

Table of contents

  • Page 1
    2005 ANNUAL REPORT

  • Page 2
    ... A RESPONSIBILITY TO OUR FRANCHISE We must put Citigroup's long-term interests ahead of each unit's short-term gains and provide superior results for our shareholders. We must respect the local culture and take an active role in the communities where we work and live. We must honor those who came...

  • Page 3
    ... Share Income from Continuing Operations Net Income Tier 1 Capital Ratio Business Segment Net Income Global Consumer Group Corporate and Investment Banking Global Wealth Management Citigroup Alternative Investments 1 includes Trust Preferred Securities * includes the $2.1 billion gain on the Sale...

  • Page 4
    ... to our quarterly dividend, our 21st consecutive year of common dividend increases. I am proud of our achievements in 2005. In the aftermath of our problems in Japan and Europe in 2004, we took a long, hard look at ourselves and developed our Five Point Plan that focused on employee training, talent...

  • Page 5
    ... more people every day than any other financial services company. We do this through our thousands of bank, consumer finance, and Smith Barney branches, along with our ATMs, automated loan machines, trading desks, online services, and more. O ur global presence and reach are made more powerful by...

  • Page 6
    ... openings; expanding our capital markets businesses, including our brokerage businesses and our electronic trading capabilities; and increasing the number of private bankers in the United States. Transferring Expertise-To manage Citigroup as one company, we are integrating our products and services...

  • Page 7
    ...financial services industry, Sandy Weill, who will retire as Chairman of Citigroup in April of this year. For the past 20 years, I have had the privilege and good fortune to work alongside Sandy, one of the 20th century's towering business leaders. Sandy's vision was straightforward-to give as many...

  • Page 8
    ... for their families and served their communities." Dear Shareholders, O n April 18, 2006, I will step aside as Chairman of Citigroup. These are not easy words to write. Citigroup and its legacy companies have been such an important part of my life these past 46 years that it's difficult to imagine...

  • Page 9
    ... of enormous ï¬,ows of petrodollars generated by today's oil prices; what effects might global trade imbalances and U.S. intermediate and longer-term fiscal imbalances have over the longer run for interest rates and foreign exchange rates around the world; where is growth likely to be greatest...

  • Page 10
    ...lot of traveling in the U.S. and abroad and one of the best things I like about Citi is that I can do my banking almost anywhere, no matter what I need to do and when I need to do it. They're in so many places. And I also think the staff is terrific." LONDEL DAVIS, U.S. CITIBANK CLIENT FOR 30 YEARS

  • Page 11
    ... first checking accounts in New York, our businesses offer more to the world's consumers than any other financial institution. Among other innovations in 2005, we introduced the PayPass debit product in the United States, the first Cards rewards program in Egypt, mobile phone banking in Australia...

  • Page 12
    ... we added nine branches and launched several key products, including personal loans, retail accounts, and online capabilities. In the United States, we also completed the acquisition of First American Bank in Texas, adding 106 branches in one of our key U.S. markets. We expect to expand our Citibank...

  • Page 13
    .... From our Financial Education Summit in Malaysia to the "My Finances" Economic Education Program in Poland, we devoted our time and resources to improving financial literacy globally. In addition, Citibank Community Development closed nearly $2.5 billion in loans last year, helping to create more...

  • Page 14
    ... Citigroup to do the right thing for us, whether to win a deal, commit its balance sheet and assets, or alert us when they think we're not doing the right thing. When we go into battle to win a deal, we're happy to have Citigroup on our side." STEPHEN SCHWARZMAN, CHAIRMAN & CEO, THE BLACKSTONE GROUP...

  • Page 15
    ... Hands, CEO of Terra Firma Capital Partners. When PepsiCo required a banking system with global visibility to optimize its investments, the company teamed with Citigroup to develop TreasuryVisionSM, a powerful Web-based tool that provides views of real-time balances, cash positions, investments, and...

  • Page 16
    ... abroad. Working with teams from M&A, Energy, and Fixed Income, and with coverage bankers from Hong Kong, China, London, New York, and Canada, CNPC achieved its goal and completed the $4.18 billion transaction in just four months. GLOBAL REACH When it required a bookrunner with leadership positions...

  • Page 17
    ...xed income products, we repositioned Structured Corporate Finance and integrated our Loans and Leveraged Finance teams. Our new commodities trading hub in Houston, Texas-working with teams in London, New York, and Singapore- offers creative solutions to clients trading natural gas, crude oil, metals...

  • Page 18
    ... like to take. But when it comes to managing my money, I'm much more risk-averse, so I feel comforted knowing that my portfolio is being managed by some of the best talent in the industry at Smith Barney and in an institution the size and scale of Citigroup." STEVEN MOORE, SMITH BARNEY CLIENT, U.S.

  • Page 19
    ... of our businesses, we can provide the intellectual leadership our clients demand as we address their wealth management and investment research needs. In the year since the formation of Global Wealth Management-comprising Citigroup Smith Barney, The Citigroup Private Bank, and Citigroup Investment...

  • Page 20
    .... INTELLECTUAL LEADERSHIP In 2005, Global Wealth Management also continued to build on its intellectual capital base. By leveraging scale and resources across Citigroup and across our sector, we have been able to invest more in the businesses and improve our performance for clients and shareholders...

  • Page 21
    ...-U.S. markets in 2006. In particular, we will expand Citigroup Wealth Advisors (Smith Barney's operations outside the United States), and develop the Citigroup Private Bank's onshore presence in three key countries: India, Brazil, and the United Kingdom. As we build on this expanded global coverage...

  • Page 22
    ...To assist them, we are able to offer the product array, the quantitative insights of our asset allocation research team, and the qualitative insights of our investment center professionals." MAUREEN O'TOOLE, CITIGROUP ALTERNATIVE INVESTMENTS, MANAGING DIRECTOR, HEAD OF HIGH-NET-WORTH SALES, AMERICAS

  • Page 23
    ... with planning to help them understand the role of CAI products in their portfolios. What's more, we work in close partnership with our businesses in Global Wealth Management, Corporate and Investment Banking, and Global Consumer to harness the power of Citigroup's distribution. World-class service...

  • Page 24
    ... is a natural alliance that is helping strengthen sustainable economic development in communities across Mexico. By providing low-income youth and adults with financial education, job skills, entrepreneurial training, and access to financial products and services, we are empowering people to create...

  • Page 25
    ... criteria relating to environmental sustainability, corporate citizenship, shareholder returns, and support of human rights. FINANCIAL EDUCATION Building on the commitment we made in 2004 to invest $200 million over 10 years in support of financial education, in 2005 Citigroup awarded close to $30...

  • Page 26
    ...Equity Deal: Sungard LBO FIG Deal of the Year: Citigroup Swap with Legg Mason Healthcare Deal: Emory University LATIN FINANCE Best Syndicated Loan Best Cross-Border M&A Best Syndicated Loan-Techint $1.38B loan Best Project Finance-Mexico City International Airport STARMINE BROKER RANKINGS Best Stock...

  • Page 27
    ...-Ku Ha [Korea (South)], Susan Harnett (Germany), Stephen Long, Mohammed Al-Shroogi (Bahrain), and Slawomir Sikora (Poland). Citigroup's legacy dates back nearly 200 years and today we do business in more than 100 countries. The market for financial services is growing rapidly, much of it outside...

  • Page 28
    ...General Counsel Corporate Secretary Citigroup Inc. Bonnie Howard Chief Auditor Citigroup Inc. Leah C. Johnson Director, Public Affairs Citigroup Inc. Charles D. Johnston • President & CEO Global Private Client Group Global Wealth Management Mark Joiner • CFO, Head, Strategy and M&A Global Wealth...

  • Page 29
    ... Foreign Trade, Investment and Technology; Former Vice Chairman, CEO, Sales and Marketing, Grupo Modelo, S.A. de C.V . Robert Druskin †President & CEO Citigroup Corporate and Investment Banking John V. Faraci Chairman & CEO International Paper Dr. Victor K. Fung Chairman, Li & Fung Group Richard...

  • Page 30
    ... NM 44% Capital Markets and Banking Transaction Services O ther4, 5 Total Corporate and Investment Banking GLOBAL WEALTH MANAGEMENT Smith Barney Private Bank6 Total Global Wealth Management CITIGROUP ALTERNATIVE INVESTMENTS CORPORATE OTHER INCOME FROM CONTINUING OPERATIONS INCOME FROM DISCONTINUED...

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