Citi Group, Inc.

Citigroup Inc.
399 Park Avenue,
New York, NY 10043
212-559-1000
www.citigroup.com

2003 net revenues: $77.4 billion
2003 net income: $17.8 billion

Net income from Capital Markets and Banking (includes investment banking): $4.6 billion

2003 total capital: $90.3 billion

2003 total employees
United States: 134,000 (full time)
6,000 (part time)
Outside the U.S: 119,000 (full time)

Chairman: Sanford I. Weill
Chief Executive Officer: Charles Prince

Citigroup Inc. is a global financial services holding company, which provides financial services to consumer and corporate clients in more than 100 countries.

Citigroup's 2003 10-K notes that legal proceeding against the company "include actions brought against the Company in its various roles, including acting as a lender, underwriter, broker-dealer or investment advisor."

The California Public Employees Retirement System (CALPERS) and the New York State Common Retirement Fund have cited corporate governance problems at the company, specifically, the independence of the four directors who are insiders. CALPERS has also stated that Chairman Weill should be held accountable for the losses incurred by the company in its settlement of the company's conflict of interest between its investment research and investment banking departments.

History

Citigroup's origins are in The Travelers, the first accident insurer in the United States, founded in 1864 in Hartford, Connecticut. It survived the Depression because of its decision to buy federal bonds on the eve of the 1929 crash. The company pioneered other lines of the insurance business, including the first auto policy, the first air travel policy (to President Woodrow Wilson) and the first space travel policy (to the Apollo 11 astronauts for the first moon landing).

It entered the financial services business in the late 1970s and the early 1980s. After it sold its home-mortgage units in the late 1980s, it was taken over by empire builder Sandy Weill and went through a series of restructurings. The company went public in 1996 after all its property and casualty operations were consolidated under Travelers Property Casualty.

In 1997, Travelers bought investment bank Salomon Brothers and in 1998 it merged with Citicorp, the financial group that grew out of New York City's First National City Bank (later Citibank). The newly merged companies formed Citigroup, which in 1998 and 1999 laid off more than 10,000 employees as the U.S. economy slowed amidst global market turmoil.

Business Segments

According to the company's 2003 10-K, its activities are conducted through four business segments:

Global Consumer, Global Corporate and Investment Bank (GCIB)
Private Client Services
Global Investment Management (GIM)
Proprietary Investment Activities


GCIB includes:

Capital Markets and Banking
Transaction Services
Other Corporate


The company's 10-K describes its Capital Markets and Banking business as follows:

"Capital Markets and Banking offers a wide array of investment and commercial banking services and products, including investment banking, debt and equity trading, institutional brokerage, advisory services, foreign exchange, structured products, derivatives, and lending."

The company's 10-K does not provide specific information about its underwriting business, although it was ranked as the number one bookrunner in the U.S. for new long-term municipal issuance in 2003 by Thomson Financial.

Income/Revenues from Business Segments

Net income from continuing operations increased 33 percent to $17.8 billion in 2003, compared to $13.4 billion in 2002. Net revenues increased 9 percent, from $71.3 billion in 2002 to $77.4 billion in 2003.

In 2003 the Global Consumer, Corporate and Investment division generated 31 percent of the company's income (from continuing operations) for a total of $5.3 billion.

Capital Markets and Banking contributed 86 percent of net income generated by GCIB for a total of $4.6 billion.