Citigroup Inc. (Citigroup)

Citigroup Inc. (Citigroup)

 

Citigroup Inc. (Citigroup), incorporated in 1988, is a diversified global financial services holding company whose businesses provide a range of financial services to consumer and corporate customers. The Company is a bank holding company. The segments include Global Consumer Group, Corporate and Investment Banking (CIB), Global Wealth Management and Alternative Investments (AI). Citigroup has more than 200 million customer accounts and does business in more than 100 countries. On June 30, 2006, Citigroup sold the Upstate New York Financial Center Network. On August 22, 2006, it acquired TD Waterhouse Capital Markets Business. In February 2007, the Company completed the acquisition of the Affordable Housing Debt Business of Capmark Financial Group Inc. In March 2007, the Company's Citigroup Venture Capital bought 19.9% stake in Anand Rathi Securities. In May 2007, the Company acquired Egg Banking plc (Egg), an online bank and a United Kingdom-based online financial services provider, from Prudential PLC. As of May 9, 2007, the Company held a 56.15% stake in Nikko Cordial Corporation. In June 2007, Citigroup increased its stake in Nikko Cordial Corporation to 68.23% in terms of voting rights, giving it full control of Nikko Cordial Corporation. In July 2007, the Company merged with Citigroup Japan Investments LLC, a 100% subsidiary of the Company.

 

In August 2007, it acquired The BISYS Group, Inc. In July 2007, Citigroup completed the acquisition of Old Lane Partners, L.P. and Old Lane Partners, GP, LLC. Old Lane will operate as part of Citi Alternative Investments (CAI), the Company's integrated alternative investments platform. In May 2007, CIT Group Inc. completed the acquisition of the U.S. Business Technology Finance unit of Citigroup Inc. In May 2007, the Company completed the acquisition of substantially all of the subsidiaries of Grupo Cuscatlan from Corporacion UBC Internacional S.A., the subsidiaries' holding company. Citigroup acquired Grupo Cuscatlan's banking operations, some of its insurance operations and other financial activities.

 

Global Consumer Group

 

Citigroup's Global Consumer Group provides an array of banking, lending, insurance and investment services through a network of 8,110 branches, approximately 18,800 automated teller machines (ATMs), 809 automated lending machines (ALMs), the Internet, telephone and mail, and the Primerica Financial Services salesforce. Global Consumer serves more than 200 million customer accounts, providing products and services to meet the financial needs of both individuals and small businesses.

 

U.S. Cards is a provider of credit cards in North America, with more than 150 million customer accounts in the United States, Canada and Puerto Rico. In addition to MasterCard (including Diners), Visa and American Express, U.S. Cards is a provider of credit card services to the oil and gas industry and the provider of consumer private-label credit cards and commercial accounts on behalf of merchants, such as The Home Depot, Sears, Federated, Dell Computer, Radio Shack, Staples and Zales Corporation. U.S. Retail Distribution provides banking, lending, investment and insurance products and services to customers through 972 Citibank branches, 2,469 CitiFinancial branches, the Primerica Financial Services (PFS) salesforce, the Internet, direct mail and telesales.

 

U.S. Consumer Lending provides home mortgages and home equity loans to prime and non-prime customers, auto financing to non-prime consumers and educational loans to students. Loans are originated throughout the United States and Canada through the Citibank, CitiFinancial and Smith Barney branch networks, Primerica Financial Services agents, third-party brokers, direct mail, the Internet and telesales. Loans are also purchased in the wholesale markets. U.S. Consumer Lending also provides mortgage servicing to a portfolio of mortgage loans owned by third parties. U.S. Commercial Business provides equipment leasing and financing, banking services to small and middle-market businesses ($5 million to $500 million in annual revenues) and financing for investor-owned multi-family and commercial properties.

 

International Consumer is composed of three businesses: Cards, Consumer Finance and Retail Banking. International Cards provides MasterCard, Visa and Diners-branded credit and charge cards, as well as private-label cards and co-branded cards, to more than 30 million customer accounts in 43 countries outside of the United States and Canada. International Consumer Finance provides community-based lending services through a branch network, centralized sales platforms and cross-selling initiatives with International Cards and International Retail Banking. As of December 31, 2006, International Consumer Finance maintained 2,588 sales points comprised of 1,779 branches in more than 25 countries, and 809 ALMs in Japan. International Consumer Finance offers real-estate-secured loans, unsecured or partially secured personal loans, auto loans and loans to finance consumer-goods purchases. International Retail Banking delivers an array of banking, lending, insurance and investment services through a network of local branches and electronic delivery systems, including ATMs, call centers and the Internet. International Retail Banking serves more than 52 million customer accounts, composed of individuals and small businesses. Other Consumer includes certain treasury and other unallocated staff functions and global marketing.

 

Corporate and Investment Banking

 

CIB provides corporations, governments, institutions and investors in approximately 100 countries with a range of financial products and services. CIB includes Capital Markets and Banking, Transaction Services and Other CIB. Capital Markets and Banking offers an array of investment and commercial banking services and products, including investment banking and advisory services, debt and equity trading, institutional brokerage, foreign exchange, structured products, derivatives and lending. Capital Markets and Banking revenue is generated primarily from fees for investment banking and advisory services, fees and spread on structured products, foreign exchange and derivatives, fees and interest on loans, and income earned on principal transactions.

 

Transaction Services is composed of Cash Management, Trade Services and Securities & Fund Services (SFS). Cash Management and Trade Services provide comprehensive cash management and trade finance for corporations and financial institutions worldwide. SFS provides custody and fund services to investors, such as insurance companies and pension funds, clearing services to intermediaries, such as broker/dealers, and depository and agency/trust services to multinational corporations and governments globally. Other CIB includes offsets to certain line items reported in other CIB segments, certain non-recurring items and tax amounts not allocated to CIB products.

 

Global Wealth Management

 

Global Wealth Management is composed of the Smith Barney Private Client businesses (including Citigroup Wealth Advisors outside the United States), Citigroup Private Bank and Citigroup Investment Research. Smith Barney provides investment advice, financial planning and brokerage services to individuals, companies and non-profits through a network of more than 13, 000 financial advisors in more than 600 offices primarily in the United States. Smith Barney generates revenue from managing client assets, acting as a broker for clients in the purchase and sale of securities, financing customers' securities transactions and other borrowing needs through lending, and through the sale of mutual funds and alternative investments. Citigroup Investment Research provides independent client-focused research to individuals and institutions around the world.

 

Private Bank provides personalized wealth management services for high-net-worth clients in 33 countries and territories. These services include comprehensive investment management (investment funds management, capital markets solutions, trust, fiduciary and custody services), investment finance (credit services, including real estate financing, commitments and letters of credit) and banking services (deposit, checking and savings accounts, as well as cash management and other traditional banking services).

 

Alternative Investments

 

AI manages capital on behalf of Citigroup, as well as for third-party institutional and high-net-worth investors. AI is an integrated alternative investment platform that manages a range of products across five asset classes, including private equity, hedge funds, real estate, structured products and managed futures. AI's business model is to enable its 14 investment centers to retain entrepreneurial qualities required to capitalize on evolving opportunities.

The Proprietary Portfolio of Alternative Investments consists of private equity, single- and multi-manager hedge funds, real estate and Legg Mason, Inc. (Legg Mason) preferred shares. The Client Portfolio is composed of single- and multi-manager hedge funds, real estate, managed futures, private equity, and a variety of leveraged fixed-income products (credit structures). Products are distributed to investors directly by AI and through Citigroup's Private Bank and Smith Barney businesses.