Citibank 2005 Annual Report Download - page 6

4 | Citigroup 2005
With these unique competitive advantages, we have
every reason to look to Citigroup’s future with opti-
mism. Indeed, with continued GDP growth around
the world, market reforms in developing countries,
and the rise in global trade, we are witnessing the
emergence of a new middle class. We estimate that
approximately 750 million potential new consumer
customers, largely outside the United States, will
emerge over the next fi ve years—an unprecedented
opportunity for the fi nancial services industry, and
especially for Citigroup.
While we have a full menu of products and services
to offer, the real power of Citigroup comes when we
integrate them and work as one company on behalf
of our clients. I have every confi dence that we are
doing what’s necessary to achieve that goal.
OUR STRATEGIC PRIORITIES
For 2006 and beyond, we have fi ve strategic priorities:
Expanding Distribution—To penetrate new mar-
kets and deepen our presence in existing markets
around the world, we are accelerating the pace
of retail and consumer fi nance branch 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 better. This enables us to improve how
we serve our clients by providing insightful and
comprehensive solutions. At the same time, trans-
ferring expertise can create enormous value for
the company: witness the partnership between our
Banamex and U.S. Cards businesses. By combining
our client targeting and pricing experience from
the United States with Banamex’s product and
marketing expertise, Banamex’s credit card business
generated increases of 50 percent in both revenues
and net income in 2005.
Investing in People and Technology—One of our
goals is to have more common systems and stan-
dards across Citigroup so clients can transact with
us more easily, no matter what business is serving
them or where they’re conducting business. We also
want to attract and develop the best talent, so we
continue to emphasize the long-term training and
development of our employees, in keeping with
our Five Point Plan. We continue to be the second
most favored company among MBAs (Fortune U.S.
survey), offering unparalleled opportunities for
rewarding careers.
Allocating Capital to Maximize Returns—We
will continue to evaluate our use of capital rigor-
ously in order to move it to higher-return and
growth opportunities. For example, late in 2005
we sold a substantial portion of our stake in Nikko
Cordial, a Japanese fi nancial company, and increased
our investment in Nikko Citigroup Ltd., our secu-
rities business joint venture.
Embracing Our Shared Responsibilities—In
2006 and beyond, we will further build on our
three Shared Responsibilities as the essential
foundation for the growth of our franchise.
We believe we must not only satisfy but even
exceed our clients’ expectations. The Citigroup
team is working to fi nd integrated client solutions
and to bridge our businesses so all of the company
is working in unison. To help ensure we reach
this goal, we are continuing our efforts to make
Citigroup a fast-acting, nimble organization and to
shed bureaucracy.
CORPORATE SOCIAL RESPONSIBILITY
This was a year of unprecedented natural disas-
ters—the aftermath of the tsunami in late 2004,
the earthquake in south Asia, and the hurricanes
in the United States. In response, Citigroup, the
Citigroup Foundation, and our employees com-
mitted more than $30 million for disaster relief and
for rebuilding communities in the affected areas—a
commitment of which we can all be proud.
We’re also pleased that 30 of our employees were
chosen to take part in a disaster relief program
sponsored by the American Red Cross—the fi rst of
its kind. These volunteers worked for two weeks at
Citigroup’s expense to help victims of Hurricane
Katrina. I’m proud of them all and of the many thou-
sands of our employees who volunteer their time.