Citibank 2014 Annual Report Download - page 4

to close by the end of this year. And, after careful review, we
announced our intent to exit several non-core Consumer and
Institutional businesses, which will be reported as part of Citi
Holdings going forward. This move allows us to reallocate
those resources to businesses with far greater potential to
deliver value to clients and generate returns for the firm.
Turning now to the third goal, our record of delivering quality
and consistent earnings so far is mixed. We’ve produced
many strong quarters that show the power of our franchise
and what this firm can do at its best. But the environment
remains challenging and our results have also been undercut
by a series of legal accruals and settlements as well as
sizable repositioning charges.
Yet even in the face of these challenges, we made substantial
progress in every one of our business lines. In our Consumer
franchise, we further simplified our product offerings
while increasing the number of customers whose primary
interactions with the bank are through digital channels.
As a result, we were pleased to see an increase in customer
satisfaction, as measured by Net Promoter Scores.
We also made considerable progress toward the rationalization
and rightsizing of our country and branch networks. In the
11 markets we marked for divestiture in 2014, we didn’t see the
potential for achieving appropriate returns. Going forward,
our core Consumer network will comprise those 24 countries
where we enjoy some mixture of scale, competitive advantage,
history and expertise. We closed sales on our retail franchises
in Greece and Spain and signed agreements to sell those in
Peru and Japan. And, in an environment that continues to
be challenging, our U.S. business performed well, while we
showed modest growth internationally.
Our Institutional franchise performed well throughout
the year as we focused on serving core clients and our
institutional banking businesses continued to show solid
revenue growth. In Investment Banking, we gained share
with our target clients across most regions and generated
strong revenue growth. And despite the low interest rate
environment, Treasury and Trade Solutions grew revenues as
well, as did the Private Bank. While our Markets businesses
were impacted by lower client activity toward the end of
the year, we will continue to take steps to make sure these
businesses are sized correctly for the environment we see
going forward.
I know that, to fulfill the potential of this company, we
must both execute our strategy to our utmost and stop
undermining our progress with self-inflicted wounds.
That’s why I’ve made ethics and execution the core of
my agenda as CEO. Acting ethically in all that we do is a
cultural and business imperative. It also impacts directly
on the bottom line. Fines and settlements consume capital
that could otherwise be used to invest in our business, or
returned to you, our shareholders. Acting ethically is, first
and foremost, our license to do business. But even more
important, integrity is the currency through which we earn
and deserve the trust of our clients and customers — which
is the necessary foundation of everything we do.
And I want to make absolutely clear that we are still
committed to meeting, in 2015, the targets we set for our
firm’s return on assets and for our efficiency ratio. While
challenging to achieve this year, they are within reach if
market conditions remain stable. All that we accomplished
over the last two years has been in preparation for this year.
And I’m confident we will rise to the occasion.
2014 Citicorp Net Revenues: $71.0 billion
By Region
North America
45%
Asia
21%
Latin America
19%
Europe,
Middle East
and Africa
15%
1 Results exclude Corporate/Other.
By Business
Global Consumer Banking
53%
ICG Markets and
Securities Services
23%
ICG Banking
24%
ICG — Institutional Clients Group
2014 Citicorp Net Revenues1
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