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Project on Citi Bank
by Commerce Solutions in

Citi

Citi is a global financial group that provides a wide range of financial services and products to more than 200 million individuals, legal persons, state authorities and institutions in more than 100 countries throughout the world. Services provided include retail banking, corporate and investment banking, insurance and asset management


 

Introductory Information

The Citibank's history dates back to the founding of Citibank in 1812.

Citibank Pakistan has demonstrated its ability to identify market needs and develop products which are unique in concept and fulfill customer requirements. The aptitude to develop lifelong relationships while maintaining quality measures and technological efficiencies has assisted Citibank in becoming a true market leader.

Citibank (Slovakia) as. has been conducting business in all areas of banking and financial services since 1 November 1995 based on a universal banking license issued by the National Bank of Slovakia. Citibank (Slovakia) as. is a 100% subsidiary of the Citibank Overseas Investment Corporation, which is owned by Citibank N.A. New York. It is also part of the American holding company Citigroup Inc.

Chairman's message


 


Each year in this report we present the facts and figures of our Foundation's giving to communities around the

world. We're proud of these numbers. They demonstrate the power and reach of Citi. Yet, the most compelling story is what stands behind the numbers: longstanding relationships with the organizations we support.

Our commitment results in grants that provide the financial, human, and professional resources our partners need to help shape their communities. Take microfinance, for example. The Foundation has been supporting ACCION International for more than 30 years and along the way has helped the organization pioneer and transform an industry that barely existed a few decades ago. Today, microfinance is everywhere, providing real opportunities for poor people to improve the quality of their lives and access financial services.

The Foundation's grant making is also informed by insight from our nonprofit partners, allowing us to develop

and fund programs that have the greatest impact in our core areas of support: Financial Education, Educating the Next Generation, and Building Communities and Entrepreneurs. Working with a global network of Citi colleagues and nonprofits in the community, Citi and the Citigroup Foundation fund programs that draw on our expertise and have a significant impact on our communities. Our giving supports programs that help

people improve their lives, businesses grow, and communities prosper.

As we look ahead to deepening the Foundation's influence in 2007 and beyond, I'm pleased that Pam Flaherty

is leading the way as President and Chief Executive Officer of the Citigroup Foundation. Pam has a long history of service as a board member of many prominent nonprofit organizations, and she will add valuable direction as we build on the Foundation's extraordinary achievements.

Letter From The President


 

I am proud to celebrate the stories and relationships that help make a difference in our communities. Together the Foundation and Citi have accomplished a great deal, including providing more than $137 million in grants in 2006 and responding to natural disasters with more than $30 million in Foundation, Citi, and employee giving.

Yet our support is more than writing a check or making a grant. The Foundation's grantmaking helps employees

pursue charitable volunteer efforts. Each day, thousands of Citi employees make a tremendous difference in their communities by donating their time and talent to local nonprofits. Our employees spend countless hours in volunteer activities, including teaching financial education courses, mentoring students, and building

homes for families. These considerable efforts reinforce our company's shared values and our commitment to making the world a better place.

Philanthropy and community involvement are not only important aspects of our role in society, but they also

say something about who we are. We will continue to look for new and better ways to serve our communities.

I'm looking forward to the opportunities that lie ahead, and I am pleased to be working with the Foundation Board and staff, our partner organizations, and Citi colleagues to strengthen the Foundation's impact in communities around the world.

History


 

On June 16, 1812, with $2 million of capital, City Bank of New York (now Citibank) opened for business in New York City. Through many different leaders and economic environments over the course of its rich history, Citibank continues to grow and prosper.
  In 1968, First National City Corporation (later renamed Citicorp), a bank holding company, became the parent of Citibank.
  In 1998, all Citicorp divisions merged with all divisions of Travelers Group to form Citigroup Inc. Citibank continues as a strong brand under the Citigroup umbrella.


 


 


 

1812

June 16: New York State charters City Bank of New York with authorized capital of $2 million and paidin capital of $800,000. September 14: City Bank opens for business to serve a group of New York merchants. Samuel Osgood is elected president (1812–1813).

1813

First dividend is paid


 


 

1822 

Farmers' Fire Insurance and Loan Company is founded, the first incorporated trust company in the U.S. Its name becomes Farmers' Loan and Trust Company in 1835, and it merges with National City Bank in 1929.

1827 

Isaac Wright is elected president (1827–1832). 

1856 

Moses Taylor is elected president (1856–1882). 

1865 

City Bank joins the new U.S. national banking system and becomes The National City Bank of New York.

1882 

Percy Pyne is elected president (1882–1891).

1891 

James Stillman is elected president (1891–1909). He also serves as chairman (1909–1918). 

1894 

Becomes the largest bank in the U.S.

1897 

First major U.S. bank to establish a foreign department; begins foreignexchange trading. 

1902

Expands into Asia, Europe and India, with offices from Shanghai to Manila. 

1904 

Introduces traveler's checks. The bank moves to larger quarters at 55 Wall Street, its headquarters until 1961 

1909 

Frank Vanderlip is elected president (1909–1919); James Stillman is elected the first chairman (1909–1918).

1913 

The bank is the first contributor to the Federal Reserve Bank of New York 

1914 

November 10: National City inaugurates the first foreign branch of any U.S. national bank, in Buenos Aires. 

1918 

International Banking Corporation, a U.S. overseas bank, becomes a wholly owned subsidiary of National City.

1919 

First U.S. bank with $1 billion in assets. James A. Stillman, son of chairman James Stillman, is elected president (1919-1921).


 

1921 

National City is the first major U.S. bank to offer compound interest on savings accounts. Charles E. Mitchell is elected president (1921–1929) and later chairman (1929–1933).


 

1928 

May 3: First major American bank to offer unsecured personal loans to its depositors. National City Bank is the first to open a Personal Loan Department.


 


 

1929 

The bank becomes the largest commercial bank in the world. Expansion is accelerated with a merger: the Farmers' Loan and Trust Company becomes the City Bank Farmers Trust Company. Gordon S. Rentschler is elected president (1929-1940) and later appointed chairman (1940-1948).

1933 

James H. Perkins is elected chairman (1933–1940). 

1935 

The bank develops monthly payment loans for small businesses.

1936 

First bank in New York City to offer consumer checking accounts with no minimum-balance requirement.

1939 

Citibank has opened 100 offices in 23 countries outside the U.S., forming the largest international bank. 

1940 

William Gage Brady, Jr. is elected president (1940–1948) and later chairman (1948–1952).

1945 

The bank handles more than $5.6 billion in U.S. Treasury securities in a series of war loan and victory loan drives. 

1948 

Howard C. Sheperd is elected president (1948-1952) and later chairman (1952-1959). 

1952 

James Stillman Rockefeller is elected president (1952–1959) and later chairman (1959–1967)

1961 

The bank changes its name to The First National City Bank of New York. 

1962 

George S. Moore is elected president (1959–1967) and later chairman (1967–1970). 


 


 

1964 

Invents the negotiable certificate of deposit (CD). A new subsidiary, First National City Overseas Investment Corporation, becomes the bank's holding company for non-U.S.-based subsidiaries and affiliates. The new home office, 399 Park Avenue, is completed.

1965

The bank marks its 150th anniversary by shortening its name to First National City Bank. 

1966 

Enters the leasing business. 

1967 

Enters the credit card business 


 


 

1968 

Walter B. Wriston is elected president (1967–1970) and later serves as chairman (1970–1984). Introduces Citibank's first credit card the "First National City Charge Service" popularly known as the "Everything" card.

1969 

The "Everything" card is converted to Master Charge (today's MasterCard). 

1970 

William I. Spencer is elected president (1970–1982).

1976 

First National City Bank becomes Citibank, N.A. (for National Association). 


 

1977 

Citibank launches Citicard Banking Centers, anchored by ATMs and the Citicard. The 24-hour ATMs are for the first time used for more than emergency cash.

1981 

Becomes the world's leading foreignexchange dealer. 

1982

to

1984 

Savings & Loan acquisitions in California, Florida, Illinois and Washington, D.C. make Citicorp the largest bank holding company in the U.S.


 


 

1984 

John S. Reed is elected chairman (1984-1998). Citibank London is a founding member of CHAPS Clearing Company, one of the largest real-time gross settlement systems in the world, second only to Fedwire in the U.S.

1985 

Introduces Direct Access® in New York, linking personal computers in homes and offices with Citibank.

1986 

Introduces unique touch-screen automated teller machines in New York City and Hong Kong. 

1989 

Becomes the leading issuer of securitized credit card receivables. A new skyscraper at Court Square, Long Island City, New York, is built.


 

1992 

Citibank, N.A. becomes the largest bank in the United States. Citicorp's global reach links branches and offices in more than 90 countries. 


 

1993 

Becomes the largest credit card and charge card issuer and servicer in the world. Merges savings banks acquired in the 1980s and begins operating them as Citibank, FSB under a single charter.

1994 

Opens the first fully foreignowned commercial bank in Russia. 


 

1995 

Celebrates the 20th anniversary of the Consumer Banking Business. Opens the first fullservice branch in China in 45 years and branches in Vietnam and South Africa.

1996 

Has largest number of credit cards in Asia. Taiwan becomes the first country outside the U.S. with over 1 million credit cards. 

1998 

October 8: All Citicorp and Travelers Group divisions merge to become Citigroup Inc

Milestones


 

The nineties were a decade of domination and leadership for Citibank in the Pakistani marketplace and the trend continues into the new millennium.


 

1990

  • Consumer Bank was established.

1992

  • Consumer Asset Business is launched.
  • Car Financing is introduced.
  • CitiGold Priority Banking is established.
  • CitiPhone Banking launched.

1994

  • Citibank Visa Card (Gold and Silver) is launched.

1995

  • Self-Service Banking launched.

1996

  • Citibank, N.A. launches its Intranet System in April.
  • First bank to launch a Photo Credit Card.

1997

  • Citibank wins over 35 awards under the Euromoney Excellence Awards. These awards included "Best Bank" and "Best Emerging Market Bank" for two successive years.
  • Citibank Credit Cards acquire 100,000 members in less than 3 years. This milestone was achieved faster than any other Citibank business in the Asia Pacific Region.
  • Citibank and IBA develop an MBA program focused on Marketing of Financial Services (MFS).
  • Citibank, N.A. undertakes a three year support program for fund raising for the Lady Dufferin Hospital.
  • Citibank, N.A. pledges a donation to LUMS for their "Students Aid Program".
  • Citibank, N.A. in November holds its first ever Car Financing Dealer conference in Bhurban.

1998

  • Citibank launched Pakistan's first affinity card known as the "Citibank-Shaheen Credit Card". 

1999

  • First foreign bank to launch MasterCard in Pakistan.
  • Citibank Home Loans is launched.
  • Car Financing Product Feature enhancement (25% Down Payment, Free Pre-approved Credit Card with each car).
  • 0% Down Payment product for your second car.
  • Complaint Tracking System (CTS) launched.

2000

  • Citibank, N.A. is the first Financial Institution to launch Personal Loans in Pakistan.
  • The cards business launches the first ever Co-brand Credit Card in Pakistan with Caltex.
  • Dewan Farooq Motors Limited manufacturers of KIA and Hyundai cars in Pakistan, and Citibank joint label financing program.
  • Suzuki Car Financing private label Car Financing loan financing program.
  • Citibank Home Loans introduces Adjustable and Fixed Rate Home Loans.
  • The Paktel-Citibank Credit Card is launched in June.
  • LG-Citibank Installment Plan is launched in June.
  • The liabilities business launches the "Karobar Account".
  • CitiPhone Banking introduces Self Service Banking


 

Citibank

MANAGEMENT HIERARCHY

MAAL road lahore BRANCH


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 

Citibank 

Balance Sheet 

As at 31 December 2006

ASSETS:


 

2006


 

2005 

Cash and balances with treasury banks

5,881,934

8,383,947 

Balances with other banks 

2,975,916

729,186 

Lendings to financial institutions 

3,831,005

4,796,504 

Investments 

21,937,387

19,845,100 

Advances 

51,289,271

39,163,339 

Operating fixed assets 

1,186,499

340,656

Deferred tax assets – net

828,544

573,115 

Other assets 

3,385,882

2,641,794 

91,316,438

76,473,641 

LIABILITIES:

Bills payable 

1,436,826 

-

Borrowings 

15,409,454

12,612,553

Deposits and other accounts 

63,103,884

53,115,538 

Sub-ordinated loans 

-

- 

Liabilities against assets subject to finance lease 

-

- 

Deferred tax liabilities 

-

- 

Other liabilities 

5,562,319

3,603,014 

 


 

85,287,932


 

70,767,931 


 

NET ASSETS 


 

6,028,506


 

5,705,710 


 


 


 


 

Citibank 

Profit and Loss Account 

For the year ended 31 December 2006

 

2006

2005 

(Rupees in '000)

Mark-up/Return/Interest Earned

9,017,327

5,635,170 

Mark-up/Return/Interest Expensed 

4,113,089

2,035,755 

Net Mark-up/ Interest Income  

4,904,238

3,599,415 

Provision against non-performing loans and advances - net 

290,444

457,742 

Provision for diminution in the value of investments

50,000

- 

Bad debts written off directly 

614,765

169,208 


 

955,209 626,950

Net Mark-up/ Interest Income after provisions  

3,949,029

2,972,465

NON MARK-UP/INTEREST INCOME:

Fee, Commission and Brokerage Income  

1,648,434

1,804,183 

Dividend income  

8,995

- 

Income from dealing in foreign currencies  

427,746

451,897 

Gain on sale of securities  

5,434

79,678 

Unrealized gain on revaluation of investments

4,210

8,543 

Other income 

579,791

248,450 

Total non-mark-up/Interest Income  

2,674,610

2,592,751 

6,623,639

5,565,216 

NON MARK-UP/INTEREST EXPENSES:

Administrative expenses 

4,053,108

2,962,639 

Provision for diminution in the value of non-banking assets - net 

(5,408)

6,750 

Operating fixed assets written off  

638

1,265 

Other charges 

140

672 

Total non-mark-up/Interest expenses  

4,048,478

2,971,326 

2,575,161

2,593,890 

Extra ordinary/unusual items  

-

- 

PROFIT BEFORE TAXATION

2,575,161

2,593,890

Taxation - Current  

1,332,650

1,221,374 

- Prior years  

(141,594)

- 

- Deferred  

(261,169)

(135,738) 

 

929,887

1,085,636 

PROFIT AFTER TAXATION

1,645,274

1,508,254


 


 


 


 

Citibank 

Cash Flow Statement 

For the year ended 31 December 2006

 

2006

2005

(Rupees in '000)

CASH FLOW FROM OPERATING ACTIVITIES:

Profit before taxation 

2,575,161

2,593,890 

Less: 

Dividend income 

(8,995)

- 

 

2,566,166 2,593,890

Adjustments:  

Depreciation 

159,232

125,306 

Amortization 

2,396

- 

Provision for diminution in the value of investments 

50,000

- 

Provision against non-performing advances - net 

290,444

457,742 

Provision for diminution in the value of non-banking assets-net

(5,408)

6,750 

Unrealized gain on revaluation of held for trading investments  

(4,210)

(8,543) 

Bad debts written off directly  

614,765

169,208 

Charge for defined benefit plan  

33,062

36,792 

Gain on sale of fixed assets 

(4,874)

(10,713) 

Lease rentals

Operating fixed assets written off 

6,506

638

3,565

1,265 

 

1,142,551

781,372

3,708,717

3,375,262 

(INCREASE) / DECREASE IN OPERATING ASSETS:

Lendings to financial institutions 

965,499

7,445,433 

Held-for-trading securities 

818,276

(2,111,986) 

Advances 

(13,031,141)

(6,782,718) 

Others assets (excluding advance taxation) 

(738,680)

(966,540) 

(11,986,046)

(2,415,811) 


 


 


 

(INCREASE) / DECREASE IN OPERATING LIABILITIES:

Bills payable 

(224,551)

449,558 

Borrowings  

2,782,475

2,804,103 

Deposits and other accounts

Other liabilities

9,988,346

1,190,680

6,012,710

1,144,740 

 

13,736,950

10,411,111 

5,459,621

11,370,562 

Contribution to gratuity fund 

(23,699)

(49,315)

Income tax paid 

(431,794)

(78,389) 

Net cash flow from operating activities

5,004,128

11,242,858 

CASH FLOW FROM INVESTING ACTIVITIES:

Net investments in available-for-sale securities 

(2,946,175)

(16,841,195) 

Dividend income 

8,995

- 

Investments in operating fixed assets

(1,027,703)

(188,543) 

Sale proceeds from disposal of property and equipment 

24,468

20,060 

Net cash flow used in investing activities

(3,940,415)

(17,009,678) 

CASH FLOW FROM FINANCING ACTIVITIES:

Payments of lease obligations 

(6,506)

(3,565) 

Remittances made to head office  

(1,378,212)

(1,950,756) 

Net cash flow used in financing activities

(1,384,718)

(1,954,321) 

Effects of exchange rate changes on cash and cash equivalents 

51,296

20,516 

(Decrease) in cash and cash equivalents

(269,709)

(7,700,625) 

Cash and cash equivalents at beginning of the year 

9,113,133

16,813,758 

Cash and cash equivalents at end of the year 

8,843,424

9,113,133 


 


 


 


 






 

SWOT ANALYSIS

For any institute or organization, its environment contains certain opportunities & threats.

So in this situational analysis, I try to match organizational strengths and weaknesses with the environmental opportunities and threats to determine the organization's right niche. SWOT stands for strengths, weaknesses opportunities and threats.

Strengths:

  • Citibank is making an efficient use of latest computer & telecommunications terminology for facilitating the international banking transaction as well as external & internal banking procedure.
  • Citibank has a well-established reputation.
  • It has a wide range of products/services to attract the customer or clients.
  • The bank has highly trained & motivated pool of human resources. It is the effectiveness & efficiency of the employees at all levels which cause the success of the bank.
  • The bank has a deep knowledge of market.
  • Citibank provides high quality & personalized services to its customers.
  • The office set up is calm & environment is very friendly. Such an environment of bank helps a great deal in enhancing the performance of the employees.
  • In order to update the knowledge of employees & enhance their understanding to job, training facility is also provided to them. So it can be said that it has a deep knowledge of management.

Weaknesses:

  • Lack of innovation in products.
  • Services are expensive as compared with the local commercial banks.
  • No doubt there are trained employees but these employees are lacking in having complete knowledge about their products that are offered to customers then how can they sell them effectively to the customers.
  • During my stay at Main branch (MAAL Road Branch) I realized that online banking is not working properly due to which they are loosing customers.
  • On other side ATM creates problems for the customers and discourage to customer in getting their money.

Opportunities:

  • This will generate a new client base for the Bank. The bank will experience a lucrative market in both the corporate and consumer banking.
  • At present they have 15 specially designated Islamic Banking branches operating in the market, which cover 9 major cities. Consequently they have designed formal training modules for their team members in Islamic Banking and are committed to developing their skill and confidence levels for optimum performance. They should introduce Islamic branches where they don't
  • No doubt its network has expanded all over the country but opportunities always exist so it should expand its network in those areas where it is lacking due to increase in competition all over the country.
  • There were days when organizations come with quality products and succeed in the market without taking any change in products with time but times have surely changed now the organizations have to introduce new innovative products with high quality to sustain its position in market. So Branches should introduce new innovative products to sustain its position in market.
  • One of the opportunities that bank Bank Citibank has been provided by its competitors is that it has become very much possible for Citibank to develop and target a certain market and catch the customers for earning long term profitability. Financial strength is providing to be an effective tool for winning the customers.
  • The major opportunity, which I realized is that it, should consider more on its promotional activities to target profitable customers as well as attract competitor's customers, which is major achievement of any organization.

Threats:

  • In Pakistan new banks are constantly coming with new innovative products having high quality so this will result of competition in the banking sector.
  • Another threat is that banks are improving their customer services by incorporating new informational technology.
  • The existing banks in the business are providing more innovative services to clients. This threatens the client base of Citibank because the clients may switch to a bank offering more variety in the services.
  • Today the banking sector is improving not only by the hard work of concerned persons but Government is also encouraging the ideas and policies banks implement for the improvement and development of strong financial institutes. As the competition is increasing banks all over the country are moving towards better techniques for collecting and transferring data within the branches and to the head office, as far as Citibank is concerned this system needs attention and the present use of better IT technique in other banks is proving to be a serious threat for Citibank.
  • Competitors of Citibank are banking an aggressive marketing program to get the mind as well as heart share of the Citibank clients.
  • As demand of banking services has increased, banks are moving towards expansion. They are trying to open more and more number of branches all over the country and thus this is a serious threat for Citibank.