Citigroup

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Citigroup Inc.

logo
legal form Incorporated
ISIN US1729674242
founding October 8, 1998
Seat New York , United StatesUnited StatesUnited States 
management Michael E. O'Neill (Chairman)
Michael Corbat ( CEO )
Number of employees 200,000
sales 74.3 billion USD (2019)
Branch Financial services
Website www.citigroup.com
As of December 31, 2019

The Citigroup Inc. is a financial services provider headquartered in New York , who in October 1998 by the merger Citicorp and Travelers Group was created. In the course of the financial crisis from 2007 onwards , the bank, which is one of the Big Four in America alongside Bank of America , JP Morgan Chase and Wells Fargo, got into increasing difficulties. In 2019 Citigroup made a profit of $ 19.4 billion.

The bank is one of the 30 major banks that the Financial Stability Board (FSB) as "systemically important financial institution" ( systemically important financial institution ) were classified. It is therefore subject to special monitoring and stricter requirements for the endowment with equity capital ; specifically, a surcharge of 2 percentage points based on the standards of Basel III is required.

With a turnover of 48.3 billion US dollars and a profit of 6.9 billion US dollars, Citigroup ranks 8th among the world's largest banks according to Forbes Global 2000 (as of the 2016 financial year). With total assets of $ 1,795 billion, it is the third largest bank in the United States in the same year. The bank's total market cap in early 2017 was $ 164.3 billion.

Business building

According to its own information, Citigroup had more than 120 million customers in the private customer business and around 230,000 employees at the end of 2000. The number of customers rose at times to more than 200 million customers in more than 100 countries.

In 2003 the company had assets of $ 1,264,032 million and employed 275,000 people. According to the Forbes Global 2000 list, Citigroup was regularly the largest company in the world until 2007. In 2000 and 2007, the share price on the New York Stock Exchange was $ 55. The market capitalization (number of shares times the share price) reached the equivalent of 192.3 billion euros in January 2006, the balance sheet total for 2006 was the equivalent of 1,884 billion euros. A year later, liabilities rose to more than 2.074 billion euros. In 2008, the company slipped to 24th place in the global ranking, the number of employees fell to 147,000, and its market capitalization is only around 15.8 billion euros.

All Citigroup shares are currently in free float. Institutional investors own 67% of the shares, the rest is distributed among private shareholders.

Business areas

Citigroup's divisions are divided into the two divisions Citicorp and Citi Holdings . Citicorp comprises the retail banking business Citibank and Banamex in Latin America, as well as the credit card business. The Institutional Clients Group includes corporate banking, investment banking and private banking activities.

Citi Holdings was founded in the course of the split of the bank in January 2009 and is the internal bad bank of Citigroup. Hard-to-sell assets, bad loans and non-core activities were brought into these units.

history

The name Citigroup goes back to Citibank , which was founded in 1812 . Handlowy was taken over in 1870, Smith Barney in 1873, Banamex in 1884 and Salomon Brothers in 1910. The insurance division was later spun off from Traveler's Corp., which merged with Citigroup in 1998, and is now part of the insurance company The Travelers Companies, Inc.

Older Citigroup logo

The merger of Citicorp and Travelers Group was driven by Sandy Weill , the then CEO of the Travelers Group. Initially, the Citigroup was jointly run by Sandy Weill and John Reed, the then CEO of Citicorp. However, John Reed was soon forced to resign. Sandy Weill was sole CEO of Citigroup until October 1, 2003.

Recent history

Charles O. "Chuck" Prince succeeded Sandy Weill as CEO. Effective November 5, 2007, Charles Prince resigned as a result of billions in write-offs caused by the real estate credit crisis. The previous head of the "Europe" market, Sir Win Bischoff , has been appointed as interim CEO in his place .

In April 2007 the banking group took over the Bank of Overseas Chinese (BOOC / Taiwan). According to the Wall Street Journal , Citigroup paid $ 426 million for the BOOC. This makes Citibank the largest banking company in Taiwan . In May 2007, 61% of the Japanese scandal broker Nikko Cordial was bought. Citigroup acquired this for a price of $ 7.7 billion. It was also announced that further shares in Japan's third largest broker will be bought in order to possibly make Nikko a full subsidiary. On December 11, 2007, Vikram Pandit succeeded Charles Prince as managing director.

In July 2008, the takeover of the German private customer business by the French cooperative banking group Crédit Mutuel was announced.

On November 23, 2008, the United States Treasury Department , the Federal Reserve, and the Federal Deposit Insurance Corporation jointly issued a state aid plan to stabilize Citigroup, which has run into trouble during the 2007 financial crisis . The agreement aims to protect approximately $ 306 billion in assets at Citigroup against loss. In return, the US Treasury Department and the FDIC will receive preference shares , which are shares without voting rights. In addition, the Treasury Department will invest $ 20 billion from the Troubled Asset Relief Program (TARP, part of the Emergency Economic Stabilization Act ) in Citigroup preferred stock with a dividend of 8 percent. Citigroup undertakes to a. to increased restrictions on manager salaries.

For the fourth quarter of 2008, Citigroup reported a loss of 8.3 billion US dollars. The institute said it wanted to split into the two areas of Citi Holdings and Citicorp. Citicorp is said to represent the classic banking business in more than 100 countries and with deposits of around 1.1 trillion dollars, which corresponds to two thirds of the bank's total assets. According to the bank, the remaining part will be outsourced to Citi Holdings. According to observers, this move points to the imminent sale of large areas of the bank. According to the latest press reports, Citigroup intends to sell its Japanese brokerage division Nikko Cordial Securities again.

Citigroup has received approximately $ 45 billion in direct government aid. At a turbulent general meeting on April 22, 2009, five board members were adopted. In late April 2009, Citigroup announced the sale of its Japanese securities business and Japanese investment banking to Sumitomo Mitsui Financial Group for $ 5.9 billion. In June 2010 it was announced that Citigroup business with MasterCard -Credit cards in Canada for 2 billion Canadian dollars (1.6 billion euros) to the Canadian Imperial Bank of Commerce has sold (CIBC).

By the beginning of December 2010, the US government had sold all of Citigroup's shares on the stock exchange, making a profit of 12 billion US dollars.

In September 2011, the rating agency Moody's downgraded the creditworthiness of Citigroup 's short-term loans from "Prime-1" to "Prime-2", while those for long-term loans remained the same (rating: "A3"). It is less likely that the US government will step in to save a troubled big bank from a crisis.

On March 28, 2014, it was announced that Citigroup had failed the US Federal Reserve (" Fed ") stress test and that the Fed had banned the bank from paying higher dividends .

Business figures

Business and employee development (respective fiscal year)
year Total assets
in US $ million 		Sales
in US $ million 		Balance sheet profit
in million US $ 		Employees
2005 1,494,037 120,318 24,589
2006 1,884,318 142.010 21,474
2007 2,187,480 153.258 3,581
2008 1,938,470 104,349 -29,416
2009 1,856,646 108.187 -1,606
2010 1,913,902 111,697 10,593
2011 1,873,878 101,540 11,041
2012 1,864,660 89,802 7,515
2013 1,880,382 92.901 13,465 259,000
2014 1,842,181 90.909 6,688 251,000
2015 1,731,210 88,275 16,249 231,000
2016 1,792,077 82,386 13,640 219,000
2017 1,842,465 87,966 -8,048 209,000
2018 1,917,383 97.120 16,671 204,000
2019 1,951,158 103,449 18,171 200,000

property

Citigroup's most famous office building is the Citigroup Center in East Midtown Manhattan in New York City . However, this is not the company headquarters. It's across Park Avenue in the City National Bank building. The company headquarters has nine luxurious dining rooms. The management is located on the second and third floors. There is also a building in Tribeca that is home to the investment business. All Citigroup properties in New York are on the Queens Boulevard E and M subway lines.

Citigroup has acquired the naming rights to Citi Field , home of the New York Mets Major League Baseball team, which has played its home games there since 2009.

Others

In 2012, Citigroup applied for the ending .citi as part of the introduction of new generic top-level domains . The ICANN , which is responsible for the award, ruled out a mix-up with .city in August 2012 . Citibank had previously postulated a likelihood of confusion.

Citigroup received a Public Eye Award for unscrupulous assistance to tax evaders.

See also

Web links

Commons : Citigroup  - collection of images, videos and audio files

Individual evidence

  1. ↑ a b Annual Report 2019. Retrieved May 17, 2020 (English).
  2. ↑ America's largest bank writes record numbers In: Frankfurter Allgemeine Zeitung. January 14, 2020, accessed January 16, 2020.
  3. ↑ 2016 list of global systemically important banks (G-SIBs) ( English , PDF) Secretariat to the Financial Stability Board Bank for International Settlements. November 21, 2016. Retrieved January 10, 2017.
  4. ↑ 2017 list of global systemically important banks (G-SIBs) ( English , PDF) Secretariat to the Financial Stability Board Bank for International Settlements. November 21, 2017. Retrieved November 21, 2017.
  5. ^ Citigroup on the Forbes Global 2000 List . In: Forbes . ( forbes.com [accessed November 20, 2017]).
  6. ↑ Crédit Mutuel buys German Citibank. In: Spiegel Online . July 11, 2008. Retrieved July 11, 2008 .
  7. ^ Joint Statement by Treasury, Federal Reserve and the FDIC on Citigroup. Retrieved January 22, 2013 .
  8. ↑ Citigroup and Bank of America report gigantic losses. In: Spiegel Online . January 16, 2009. Retrieved January 16, 2009 .
  9. ↑ Banking - Citi is about to sell Nikko Cordial. In: Handelsblatt . April 22, 2009. Retrieved October 18, 2012 .
  10. ↑ Turbulent general meeting at Citigroup. In: Handelsblatt . April 22, 2009. Retrieved October 18, 2012 .
  11. ↑ Citigroup sells Japanese securities business to SMFG. May 1, 2009, accessed October 18, 2012 .
  12. ↑ Citigroup sells Canadian credit card business. In: Dow Jones News . Retrieved October 18, 2012 .
  13. ↑ US government collects $ 12 billion with Citi rescue. In: Reuters . December 7, 2010, accessed October 18, 2012 .
  14. ↑ Banks in crisis: Rating agency doubts the US government's willingness to help. In: Süddeutsche Zeitung . September 22, 2011, accessed October 18, 2012 .
  15. ↑ Rating: Moody's downgrades three US banks. In: Focus . September 21, 2011, accessed September 22, 2011 .
  16. ↑ FAZ.net: Difficult days at Citigroup
  17. ↑ spiegel.de: Embarrassment in the stress test: US Federal Reserve bans Citigroup higher dividends
  18. ↑ Citigroup Financial Statements 2005-2018 | C. Retrieved October 22, 2018 .
  19. ↑ Company profile . Retrieved October 22, 2018 .
  20. ↑ Sebastian Ritze: .citi vs .city - citigroup on the cuddle course. In: united-domains blog. August 30, 2012. Retrieved October 18, 2012 .
  21. ↑ Is .city confusingly similar to .citi? UDRP says yes (UDRP = Uniform Domain-Name Dispute-Resolution Policy )