Citibank 2012 Annual Report Download - page 315

293
In recent years, Citigroup has experienced intense price competition
in some of its businesses. For example, the increased pressure on trading
commissions from growing direct access to automated, electronic markets
may continue to impact Securities and Banking, and technological
advances that enable more companies to provide funds transfers may
diminish the importance of Global Consumer Banking’s role as a
financial intermediary.
Over time, there has been substantial consolidation among companies
in certain sectors of the financial services industry. This consolidation
accelerated in recent years as a result of the financial crisis, through mergers,
acquisitions and bankruptcies, and may produce larger, better capitalized
and more geographically diverse competitors able to offer a wider array of
products and services at more competitive prices around the world.
PROPERTIES
Citigroup’s principal executive offices are located at 399 Park Avenue in
New York City. Citigroup, and certain of its subsidiaries, is the largest tenant,
and the offices are the subject of a lease. Citigroup also has additional office
space at 601 Lexington Avenue in New York City, under a long-term lease.
Citibank, N.A. leases one building and owns a commercial condominium
unit in a separate building in Long Island City, New York, each of which are
fully occupied by Citigroup and certain of its subsidiaries. Citigroup has a
long-term lease on a building at 111 Wall Street in New York City and is the
largest tenant.
Citigroup Global Markets Holdings Inc. leases its principal offices at 388
Greenwich Street in New York City, and also leases the neighboring building
at 390 Greenwich Street, both of which are fully occupied by Citigroup and
certain of its subsidiaries.
Citigroup’s principal executive offices in EMEA are located at 25 and 33
Canada Square in London’s Canary Wharf, with both buildings subject to
long-term leases. Citigroup is the largest tenant of 25 Canada Square and the
sole tenant of 33 Canada Square.
In Asia, Citigroup’s principal executive offices are in leased premises
located at Citibank Tower in Hong Kong. Citigroup also has significant lease
premises in Singapore and Japan. Citigroup has major or full ownership
interests in country headquarter locations in Shanghai, Seoul, Kuala
Lumpur, Manila, and Mumbai.
Citigroup’s principal executive offices in Latin America, which also serve
as the headquarters of Banamex, are located in Mexico City, in a two-tower
complex with six floors each, totaling 257,000 rentable square feet.
Citigroup also owns or leases over 72.7 million square feet of real estate in
100 countries, comprised of 12,074 properties.
Citigroup continues to evaluate its current and projected space
requirements and may determine from time to time that certain of its
premises and facilities are no longer necessary for its operations. There is no
assurance that Citigroup will be able to dispose of any such excess premises
or that it will not incur charges in connection with such dispositions. Such
disposition costs may be material to Citigroup’s operating results in a
given period.
Citi has developed programs for its properties to achieve long-term energy
efficiency objectives and reduce its greenhouse gas emissions to lessen
its impact on climate change. Citi has also integrated a climate change
adaptation strategy into its operational strategy, which includes redundancy
measures, to address risks from climate change and weather influenced
events. These activities could help to mitigate, but will not eliminate, Citi’s
potential risk from future climate change regulatory requirements or Citi’s
risk of increased costs from extreme weather events.
For further information concerning leases, see Note 27 to the Consolidated
Financial Statements.
LEGAL PROCEEDINGS
For a discussion of Citigroup’s litigation and related matters, see Note 28 to
the Consolidated Financial Statements.