Citibank 2005 Annual Report Download - page 5

3 | Citigroup 2005
We focused on deepening client relationships. For
example, we reorganized our U.S. consumer busi-
nesses to serve the full spectrum of our clients’ needs
across all product lines—rather than just a single
product at a time—and to respond more quickly and
effectively to the opportunities presented in different
markets globally.
We expanded our distribution around the world
by adding 313 retail bank branches, 346 consumer
fi nance branches, and 125 Smith Barney branches.
We also added 170 automated loan machines in Japan.
We established the National Corporate Bank and
the National Investment Bank to serve a broader
range of clients in the United States.
We responded to our clients’ needs for more
electronic trading capabilities by leveraging the
technology from our Knight Trading and Lava
acquisitions.
We continued to focus on building product
breadth and advisory-led capabilities in our Global
Wealth Management business.
We resolved several legal and regulatory matters
favorably.
We launched the Citigroup Microfi nance
Group—which works with leading microfi nance
institutions, microfi nance networks, and investors as
commercial partners and clients—to expand access
to fi nancial products and services to individuals
who are currently not reached or who are under-
served by formal fi nancial institutions.
Having said this, we recognize that 2005 also
brought its share of disappointments and challenges:
Financially, we didn’t perform as well as we had
expected, and fell short of our goal for positive
operating leverage.
Our U.S. Cards and Fixed Income franchises
faced challenging business environments. The
implementation of the Bankruptcy Reform Act,
competitive pricing conditions, rising interest rates,
and the conforming of our accounting policy for
reward points combined to cause a decline in
U.S. Cards net income. Our full-year Fixed Income
Markets revenue growth was affected negatively
by diffi cult capital market conditions in the
second quarter.
Net Interest Revenue declined, albeit at a decreas-
ing pace over the course of the year, as interest rates
increased and global yield curves fl attened.
These disappointments and challenges served only
to strengthen our resolve to achieve good perfor-
mance in 2006 and well beyond. We fi rmly believe
that the building blocks for continued growth are
now in place.
WHAT MAKES CITIGROUP UNIQUE
We have fi ve key competitive advantages that allow us
to recognize and pursue market opportunities more
readily than any other fi nancial services company.
First, we have the most global presence: the best
international footprint of any U.S. fi nancial services
company and the best U.S. presence of any inter-
national fi nancial services company. We are in 100
countries, many for more than 100 years. Our deep
local roots give us greater insight into what clients
want and where the opportunities for growth reside.
Second, we have unmatched distribution: we serve
more people every day than any other fi nancial
services company. We do this through our thou-
sands of bank, consumer fi nance, and Smith Barney
branches, along with our ATMs, automated loan
machines, trading desks, online services, and more.
Our global presence and reach are made more
powerful by our third competitive advantage: the
most valuable brand in the industry. The strength,
stability, and integrity of our brand not only attract
and retain the most talented employees globally, but
also help us build an enviable roster of global clients.
Fourth, we have unmatched scale and effi ciency,
which are refl ected in our strong margins and
highest capital generation, and have enabled us to
grow over the years while weathering different
economic environments.
Fifth, we have the broadest product offering in the
industry—from student loans to retirement planning,
and from venture capital to initial public offerings.