Citibank 2009 Annual Report Download - page 8

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In a world of constant change, our dedication to the practice of responsible finance and client
centricity demands relentless innovation. It is a business imperative and a basic dynamic of
the culture of the New Citi. The strength and scope of our global network enable us to scale
up innovations quickly around the world. We can take a new product, service or technology in
one country and readily integrate it into others.
Successful innovation plus our genuine client focus and unique global strength – together
with the exceptional talent we have recruited or retained across our organization – are clear
indicators of a bright future for Citi.
THE FUTURE
The enormous long-term promise of Citigroup should be clear because we have made much
progress with all the fundamentals, and because our operating businesses in Citicorp have
maintained good revenue momentum. The key issues affecting short-term earnings are not
internal but environmental: the cost of credit and job creation. They will determine when we
can achieve sustained profitability.
Meanwhile, we are confident we can navigate whatever challenges we confront and still keep
Citi in a position to capitalize on a turnaround in the economy. We believe we can do so by
concentrating on these priorities in 2010:
• Preservingourhighlevelsofcapital,liquidityandreserves
• Mitigatingcreditcosts
• Sustaining the momentum of our Citicorp operating businesses from their strong 2009
performances
• ContinuingthereductionsofassetsinCitiHoldings
• InvestingstrategicallyininnovationandtheCiticorpbusinessesthatdriveCiti’searnings
potential
• Developing further our already leading global position, especially in emerging markets
• Maintainingandexpandingourroleasaconstructiveforceintheworld,shapingpublic
policy debates and meeting economic and social challenges. All of this is important to our
business interests but also is intrinsically the right thing to do.
CITI: A TRUE GLOBAL CITIZEN
The Debate on Financial Reform
In playing a constructive role in public policy debates, the natural focus of Citi at this time is
financial reform. We have spoken out on the need for change that will promote systemic safety
in the United States and globally. We will continue to do so.
I believe reform must encompass changes in regulatory architecture that create a level
competitive field for both banks and “shadow banks”; much more transparency in market
transactions, especially over-the-counter derivatives; higher capital standards for systemically
important institutions; effective controls over the risk profiles of financial firms; clear authority
for the resolution of troubled institutions; and greater global coordination. In pursuing these
objectives, naturally, we must be careful to preserve the absolutely essential role of the
banking system in capital formation and global trade flows.
Our strategic and operating changes at Citi in 2008 and 2009 have been consistent with the
direction in which such reforms would take the financial world. Not only have we overhauled
risk management, reduced the size of Citi and focused our businesses squarely on client
interests, but we also have exited much of our proprietary trading business, which today
amounts to less than 2% of our revenue.
Meeting Economic and Social Challenges
In January of this year, I traveled to Haiti in the wake of the horribly tragic earthquake there. I
wanted to visit the families of the five Citi colleagues who lost their lives, spend time with our
people whose lives had been devastated and deliver medical supplies. Like everyone else
who has witnessed the effects of this disaster, I was deeply moved by the human suffering
everywhere I went.