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Titans team(Manisha, Sandeep, Ashish,Joheb & Javed)

Founded in 1812 as the City Bank of NewFounded in 1812 as the City Bank of New York, by York, by Samuel Osgood

In 1865, joined the new US national banking system and became In 1865, joined the new US national banking system and became the National Bank Of New York .the National Bank Of New York .

By 1894 the company had become the largest bank of New YorkBy 1894 the company had become the largest bank of New York

Main Events in HistoryMain Events in History

HistoryHistory

1st contributor to the Federal Reserve Bank of New York in 18961st contributor to the Federal Reserve Bank of New York in 1896

By 1919, 1st US bank to have $ 1 billion in assetsBy 1919, 1st US bank to have $ 1 billion in assets

By 1930 100 branches in 23 countries outside USBy 1930 100 branches in 23 countries outside US

1st US Bank to have introduced Automated Teller Machines (ATM) in 19701st US Bank to have introduced Automated Teller Machines (ATM) in 1970

Company OverviewCompany Overview

Found in more than 100 countries worldwide, Found in more than 100 countries worldwide, Citibank, aCitibank, apart of Citigroup, delivers a selection of services part of Citigroup, delivers a selection of services includingincludingbanking, lending, and investment services to banking, lending, and investment services to individualindividualcustomers and businesses. With over 200 million customers and businesses. With over 200 million customercustomeraccounts, it has become a key player in the accounts, it has become a key player in the financialfinancialarea, servicing over 88% of the Fortune 50 area, servicing over 88% of the Fortune 50 companiescompaniesin the world.in the world.

Citibank HeadquartersCitibank Headquarters

399 Park Avenue, New York City399 Park Avenue, New York CityUnited StatesUnited States

Key EmployeesKey Employees

Lewis Kaden - Vice ChairmanSir Will Bischoff — Chairman

Gary Crittenden — CFO Vikram Pandit — CEO

Mission and Goals

To offer To offer innovative approachesinnovative approaches in this emerging competitive in this emerging competitive marketmarket

To offer a wide range of investment banking products to help To offer a wide range of investment banking products to help identify andidentify and achieve financial objectives of customersachieve financial objectives of customers

To seize opportunitiesTo seize opportunities to build capabilities and share in both well- to build capabilities and share in both well-established and emerging marketsestablished and emerging markets

To strengthen strategic presence in key marketsTo strengthen strategic presence in key markets

To be a leader in electronic paymentsTo be a leader in electronic payments and commerce on the Web and commerce on the Web by introducing new internet-based applications to customersby introducing new internet-based applications to customers

To continue building capability on the internet through the To continue building capability on the internet through the leadership of the new Internet Operating Groupleadership of the new Internet Operating Group

Citibank OffersCitibank Offers

Banking servicesBanking services Credit cardsCredit cards LoansLoans InvestmentsInvestments Planning/ Retirement solutionsPlanning/ Retirement solutions MortgagesMortgages Asset ManagementAsset Management InsuranceInsurance Business insuranceBusiness insurance Small business servicesSmall business services Corporate/Institutional ServicesCorporate/Institutional Services Private BankingPrivate Banking

On the whole 3 major areas of On the whole 3 major areas of businessbusiness

1.1. The Global ConsumerThe Global Consumer

services include credit cards, banking services, insurance and services include credit cards, banking services, insurance and loans. loans.

2. The Corporate and Investment Banking2. The Corporate and Investment Banking

provides advisory and transaction services to government, provides advisory and transaction services to government, institutions and corporate clients institutions and corporate clients

3. The Global Wealth Management3. The Global Wealth Management

provides a top-tier money management service catering to the provides a top-tier money management service catering to the institutional and private clientsinstitutional and private clients

OwnerShip Of CitibankOwnerShip Of Citibank

• 36.0 % - United States Government

• 11.1 % - Government of Singapore Investment Corporation

• 6.0 % - Kuwait Investment Authority

• 4.9 % - Abu Dhabi Investment Authority

• 4.3 % - Kingdom Holding Company Saudi Arabia

Citibank in Asian RegionCitibank in Asian Region

Company has extensive operations in Asia covering- China, Company has extensive operations in Asia covering- China, Hong Kong,Hong Kong, India, Japan, Philippines & Singapore.India, Japan, Philippines & Singapore.

Citibank focuses on substantial resources on growth in Citibank focuses on substantial resources on growth in emerging markets emerging markets

Company offers 2 transaction banking businesses in these Company offers 2 transaction banking businesses in these areaarea

1) EBusiness ,eCommerce, cash management & electronic 1) EBusiness ,eCommerce, cash management & electronic banking businessbanking business

2) Citibank global securities services2) Citibank global securities services

Recently the Net Profit of its Indian operations rose 20.45 Recently the Net Profit of its Indian operations rose 20.45 % to Rs. 2,173 crore during 2008-09 % to Rs. 2,173 crore during 2008-09

Major CompetitorsMajor Competitors

StrengthsStrengths Very strong position in US and European market.Very strong position in US and European market. Innovative product offering, e.g. launch of new schemes and offers Innovative product offering, e.g. launch of new schemes and offers

in relation to productsin relation to products Citibank being the giant subsidiary of Citigroup Financial, has a Citibank being the giant subsidiary of Citigroup Financial, has a

strong hold in the marketstrong hold in the market

WeaknessesWeaknesses Citibank, recently, has lost its image due to credit card theft, Citibank, recently, has lost its image due to credit card theft, losses into losses into recession and sacking of the employeesrecession and sacking of the employees

Most of its online operations are present only in US and European Most of its online operations are present only in US and European markets, not in Asian marketsmarkets, not in Asian markets

OpportunitiesOpportunities

Increasing focus on Asian & Central Eastern European.Increasing focus on Asian & Central Eastern European.

Online PresenceOnline Presence

ThreatsThreats

Weak Economy affectedWeak Economy affected

Market ConditionMarket Condition

Foreign Exchange fluctuationsForeign Exchange fluctuations

Citibank faced various problems in its journey to becoming one of the largest banks in the world.

Setting up in Latin American countries like Columbia, where foreign investment option is pretty vague. Somehow, it could cut its way through and got itself established in Columbia.

It also faced few problems in setting up in china due to its strictly regulated markets. Foreign banks were kept under special vigilance in china. But again, it wasn’t so tough to capture its market and compete with the major international bank HSBC in china.

Lately, a BPO fraud in India cost Citibank a lot. It somehow lost trust of the credit card holders. One of the reasons for it being a “tarnished brand name”. Citibank, however, denied the charges and made sure everything worked out fine at their front.

Few of the problems that Citibank faced in its Few of the problems that Citibank faced in its coursecourse.

e.g.e.g.

However, the biggest of them all was pretty recent, when However, the biggest of them all was pretty recent, when recession hit the US and European economy, where the presence recession hit the US and European economy, where the presence of Citibank is immense.of Citibank is immense.

RecessionRecession

On Nov 17, 2008, Citibank declared it will cut 52000 jobs, far more than had been expected

It was loosing approximately $8-11 million every day, and it went on for several days

Citibank reportedly was ordered to repay $18 million in August, 2008

Under these circumstances Citibank shares fell more than 6%

2008

CONTINUED….

Citibank shares continued to fall and losses kept on mounting up

US stock exchange fell by more than 200 points the day Citibank declared job cuts

Economies like Japan, Singapore were already in recession by now

Citibank’s share price till Nov 20, Citibank’s share price till Nov 20, 20082008

CONTINUED….

Net income fell down to negative within 2 Net income fell down to negative within 2 yearsyears

Citibank saved througha bailout plan of $20 Billion

Citibank in the Citibank in the newsnews

Citibank ordered to repay $18 million

The action, announced jointly by the The action, announced jointly by the Treasury DepartmentTreasury Department, , the Federal the Federal ReserveReserve and and the Federal Deposit Insurance Corpthe Federal Deposit Insurance Corp., is aimed at shoring up a ., is aimed at shoring up a huge financial institution whose collapse would wreak havoc on the huge financial institution whose collapse would wreak havoc on the already crippled financial system and the U.S. economy. already crippled financial system and the U.S. economy.

As they said "We will continue to use all of our resources to preserve the As they said "We will continue to use all of our resources to preserve the strength of our banking institutions, and promote the process of repair strength of our banking institutions, and promote the process of repair and recovery and to manage risks" .and recovery and to manage risks" .

Citibank RevivesCitibank Revives

US government rescues Citibank, bails out Citibank with $20 billion

The Citibank bailout, announced on Nov 25, 2008 will give the US government a 7.8 per cent equity stake

Shares of Citigroup surged as much as 72 per cent the very next day

At the moment it seems like bailout is going to repaid At the moment it seems like bailout is going to repaid before timebefore time

Citibank reports profit for January and February 2009, Dow Jones (US stockExchange) up 379 pts

Citibank Korea’s Q2 (April – June) net profit up 13.8 %

Citibank India net profit rises 20.45 % to Rs. 2173 Crore during 2008-2009

Although, it is fairly recent to comment whether Citibank has revived Although, it is fairly recent to comment whether Citibank has revived completely or not, however, relating to the present scenario, it has completely or not, however, relating to the present scenario, it has definitely survived recession.definitely survived recession.

This definitely had been the major crisis Citibank has ever faced in This definitely had been the major crisis Citibank has ever faced in its course.its course.

Still, lot of cost cutting measures have to be applied by Citibank to Still, lot of cost cutting measures have to be applied by Citibank to come out of the struggle and win over recession.come out of the struggle and win over recession.

A word of CAUTIONA word of CAUTION

Thank youThank you

Regards,Titans team( Manisha, Sandeep, Ashish,Joheb & Javed )