Citibank 2013 Annual Report Download - page 4

We grew our overall loan portfolio in Citicorp by 6%. In
particular, we met — and exceeded — a commitment made in
2011 to lend $24 billion to U.S. small businesses over three
years. With $9.1 billion lent in 2013 — more than double the
2009 level — that brings the total to $26.6 billion to enable
small businesses to start and expand operations, add jobs
and turn their passions into progress.
We also made good progress on several legacy issues.
We resolved some significant mortgage litigation, utilized
$2.5 billion of our deferred tax assets, reduced Citi Holdings
assets by a further 25% and cut Holdings’ annual loss in half.
These numbers helped show the capability of this franchise
to generate capital. During 2013, we generated more than
$20 billion in regulatory capital, ending the year with our
Tier I Common ratio at an estimated 10.6% on a Basel III
basis — 60 basis points above the goal we set for ourselves
at the beginning of the year. At the end of the year, our
Supplementary Leverage Ratio stood at 5.4%. And, crucially,
we achieved no objection from the Federal Reserve to our
2013 capital plan.
I told you last year that execution of our strategy would be
my primary focus. In 2013, we put in place key tools to help
us achieve the most from our franchise. We created detailed,
tough but realistic scorecards to judge the performance of
more than 500 of the top leaders of our firm. We sorted
our 101 countries into four categories — or “buckets” — to
help us prioritize the commitment of our resources to those
sectors and regions most important to our clients. And we
announced three targets for 2015 to which we are holding
ourselves accountable — return on assets, return on tangible
common equity and operating efficiency — and improved our
performance across all of them in 2013.
We’ve shown that we can generate quality earnings. But
our 2013 results also surprised us with a damaging example
of how ethical failures can jeopardize everything we work
for. We discovered that invoices that were paid through
an accounts receivable financing program in Mexico were
falsified, resulting in a $235 million reduction to our 2013 net
income. While we have completed a rapid review of similar
lending programs, we continue to investigate what took place
in Mexico and are working to identify any areas where we
need to strengthen our controls through stronger oversight or
improved processes. We are pursuing every possible avenue
to recover these funds and to punish the guilty — inside and
outside the firm.
The financial impact of fraud can be calculated. The harm to
our credibility is harder to gauge. Credibility is the currency
that allows us to meet our goals. That’s true of clients, the
core constituency we aim to serve every day; it’s true of
regulators, who grant us our license to do business; it’s true
of employees, whom we need to attract by making Citi the
best possible place to work; and it’s true of our shareholders,
whose trust we require to succeed and which we will continue
to strive to earn.
I want you to know that I’ve made crystal clear to all our
employees that I expect the very highest standards from each
and every one of them. We are launching a comprehensive
program — including improved training and a continued
focus on responsible finance — to support and enhance the
institutional values that have served this company so well for
more than 200 years.
2013 Revenues: $72 billion
By Region By Business
GCB
53%
CTS
15%
S&B
32%
NA
44%
ASIA
21%
LATAM
19%
EMEA
16%
GCB — Global Consumer Banking
S&B — Securities and Banking
CTS — Citi Transaction Services
NA — North America
EMEA — Europe, Middle East and Africa
LATAM — Latin America
2013 Citicorp Revenues
Regional results exclude Corporate/Other.
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