Citibank 2009 Annual Report Download - page 5

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The outcome of this examination was that we realigned the Company’s many and diverse
businesses into two primary operating segments: Citicorp and Citi Holdings. This action
clarified for our employees and all other stakeholders our strategic priorities for the future of
Citigroup in the United States and around the world.
Into Citicorp, we placed the businesses that are core to our strategy and that offer shareholders
the greatest earnings potential within appropriate risk parameters. These businesses are:
• Global Transaction Services
- Treasury and Trade Solutions
- Securities and Fund Services
• SecuritiesandBanking
- Global Banking
- Global Markets
- Citi Private Bank
- Citi Capital Advisors
• RegionalConsumerBanking
- Four Regional Consumer Banks in North America, EMEA (Europe, Middle East, and
Africa), Latin America and Asia that each include retail banking, local commercial banking
and Citi-branded cards
These businesses position us squarely against the world’s high-growth markets and products.
Our core mission is to be the global bank for institutions and individuals, and to serve our
clients with distinction. We bring them unique value through our global reach and innovative
solutions.
In Citi Holdings, we assembled assets and businesses that are not central to our strategy.
Some have significant value in their own right. Some have iconic brand names. Many are
economically sensitive. Citi Holdings encompasses:
• BrokerageandAssetManagement,whichincludestheMorganStanleySmithBarneyjoint
venture
• LocalConsumerLending
- North America, which includes residential and commercial real estate loans; auto, student
and personal loans; and retail partner cards
- International, which includes Western Europe consumer banking and other consumer
finance franchises around the world
• SpecialAssetPool,whichincludesnon-coreassets,manyofwhichareilliquidincurrent
markets
We are managing the Citi Holdings businesses with an eye toward tightly controlling their
risks and divesting them as quickly as market conditions and other factors enable us to
maximize their value. Since the end of 2007, we have completed more than 35 divestitures.
Our riskiest assets, which are pooled in Citi Holdings, already have been substantially
reduced, as I have noted, and they will continue to shrink. Overall, Citi Holdings assets have
declined by $351 billion, or almost 40%, over the past two years. Financial resources gained
from our ongoing divestitures are being reallocated to Citicorp.
Our restructuring of the Company for strategic clarity, I should add, has been an important
means of achieving further operating effectiveness and efficiency because we have expedited
sound decision-making on asset and liability management, capital allocation and other priorities.
World-Class Talent
Of course, all of our accomplishments would mean very little for the future of Citi without
the right people and management in place to execute our plans. Talent is the bedrock of
our strategy. In the slightly more than two years since I became CEO, we have extensively
revamped the leadership of Citi and its businesses, not only at the very top but also
throughout our organization.