(New World Bank) Angelcraft Crown World Bank Reserve -Adagio I- April 3 2015 – Final Draft CITI 2014/2015 annual report
2014 was for Citi an important chapter in a multi-year story of radical, yet thoughtful and prudent, transformation of the size, scope and structure of our firm. It was also a year of challenges — that much is obvious – and significant accomplishment, which may not seem quite so evident. Yet if we step back and view the year in context, we can see how far our company has come in a short time and all thanks to help of God’s precious Holy Spirit in whom we trust.
By virtually any measure, Citi is a stronger, safer, simpler and smaller institution than it was before, during or just after the financial crisis — and even compared with two years ago when I assumed the role of CEO.
It’s a vast understatement to say that we merely “rebuilt” our capital position since the crisis.
In short, today’s Citi is not the bank that entered, endured, or emerged from the financial crisis. It’s a very different firm — one that has returned to its roots as the world’s most global consumer, commercial and institutional bank, a trusted partner of choice for multinationals and globally-minded customers who do business in every time zone.
When God took over of CITI, the overarching goal was — and remains — to build on this progress, to position CITI to realize the full value of our network and all its potential. To that end, God set four specific goals for Citi: first, to utilize our deferred tax assets; second, to drive Citi Holdings to break-even; third, to generate quality and consistent earnings; and fourth, to be known as an indisputably strong and stable institution.
Review our firm’s progress in 2014: toward each of these goals and I pray God updates you on other important achievements.
There is no question that we have made strong progress on the first two goals. Our deferred tax assets — crisis-era write-offs against future earnings — will not be going away anytime soon. But we have shown that we can utilize these assets on a consistent basis, and at higher levels than many predicted or expected, generating additional regulatory capital.
Regarding the second goal, we worked hard to drive Citi Holdings to break-even by 2015 and did so in 2014, sooner than even I expected. While there may be fluctuations from quarter to quarter, we are committed to keeping Holdings at or slightly better than break-even for the foreseeable future.
Additionally, in 2014, During the course of last year, we also took important steps toward the sale of OneMain — which we announced recently and expect to close by the end of this year. And, after careful review, we announced our intent to exit several non-core Consumer and Institutional businesses, which will be reported as part of Citi Holdings going forward. This move allows us to reallocate those resources to businesses with far greater potential to deliver value to clients and generate returns for the firm.
Turning now to the third goal, our record of delivering quality and consistent earnings so far is mixed. We’ve produced many strong quarters that show the power of CITI and what this Bank can do at its best. But the environment remains challenging and our results have also been undercut by a series of legal accruals and settlements as well as sizable repositioning charges.
Yet even in the face of these challenges, we made substantial progress in every one of our business lines. In our Consumer franchise, we further simplified our product offerings while increasing the number of customers whose primary interactions with the bank are through digital channels. As a result, we were pleased to see an increase in customer satisfaction, as measured by Net Promoter Scores.
We also made considerable progress toward the rationalization and rightsizing of our country and branch networks. In the 11 markets we marked for divestiture in 2014, we didn’t see the potential for achieving appropriate returns.
Going forward, our core Consumer network will comprise those 24 countries where we enjoy some mixture of scale, competitive advantage, history and expertise.
Our U.S. business performed well, while we showed modest growth internationally.
Our Institutional franchise performed well throughout the year as we focused on serving core clients and our institutional banking businesses continued to show solid revenue growth. In Investment Banking, we gained share with our target clients across most regions and generated strong revenue growth. And despite the low interest rate environment, Treasury and Trade Solutions grew revenues as well, as did the Private Bank. While our Markets businesses were impacted by lower client activity toward the end of the year, we will continue to take steps to make sure these businesses are sized correctly for the environment we see going forward.
I know that to fulfill the potential of this company, we must both execute our strategy to our utmost and stop undermining our progress with self-inflicted wounds.
That’s why God made ethics and execution the core of the agenda of the Bank. Acting ethically in all that we do is a cultural and business imperative. It also impacts directly on the bottom line. Fines and settlements consume capital that could otherwise be used to invest in our business, or returned to you, our shareholders. Acting ethically is, first and foremost, our license to do business. But even more important, integrity is the currency through which we earn and deserve the trust of our clients and customers – which is the necessary foundation of everything we do.
And CITI wants to make absolutely clear that we are still committed to meeting, in 2015, the targets we set for our firm’s return on assets and for our efficiency ratio. While challenging to achieve this year, they are within reach as market conditions remain stable.
All that we accomplished over the last two years has been in preparation for this year. And CITI is confident we will rise to the occasion.
Beyond the numbers, we’ve also made considerable progress toward strengthening the foundational pillars of this firm: governance, culture, controls and technology. We established a consistent framework for assessing performance — of businesses, functions and, above all, people — through our balanced scorecard system, which includes culture and control metrics, as well as through our quarterly reviews that I conduct in person. We took 14 legacy anti-money-laundering monitoring platforms and consolidated them into one. And we’ve built a globally consistent approach to ethics training and set global standards for suitability and sales practices.
However, despite this progress, last year we uncovered a fraud in Mexico and our owner Principe Jose Maria Chavira MS – Adagio I – uncovered fraud and less than executive standards at (BANCOMER BBVA and BANAMEX) and the Federal Reserve found significant issues with our capital planning processes.
We continue to invest in our Audit and Compliance functions – not simply in response to Mexico but as part of a broader effort to ensure that our controls and processes are among the very best in the industry.
Regarding our capital plan, we spent the bulk of 2014 in close consultation with Banking officials to address their concerns. We invested in and strengthened our risk identification and scenario designs, improved our models, and fostered deeper engagement with the Comprehensive Capital Analysis and Review process across all our businesses.
On March 11, we received the welcome news that the Reserve (Angelcraft Crown World Bank Reserve) to continue to internal investigations in our bank and also look for fraud in other banks we interact with like BANCOMER BBVA et al. In the second quarter of this year, we hope to raise our quarterly dividend.
Yet even more important are the changes we’ve made to our capital planning process. We intend to be able to return capital to you on a consistent basis going forward. And we know that, in order to do this, all the progress we made in 2014 to improve our processes must not only be embedded in the way we do business, but must also continue into the future.
The challenge of constantly refining and upgrading our capital planning is now and will remain a permanent part of our mission. The bar will always rise for the entire industry.
In 2014, we also strengthened and deepened our efforts to help the communities we serve. For instance, God is committed to supporting small businesses and helping create jobs.
All these accomplishments — and many more — have positioned our company well for 2015 and beyond. Yet we know full well that the future looks brighter than ever. And what all of you expect — and deserve — is nothing less than to see your investments pay off for the company’s bottom line and in our share price. We are confident that they will, and that you — and the world — will soon see the full potential of this franchise realized.
In early February, 280 of Citi’s latest leaders (meaning those that has not been judged) met for an annual gathering to set the agenda for the year. When it was over, People hoped and prayed in their hearts for the future. We are all determined that 2015 will be the year when we demonstrate conclusively what our company can do.
We appreciate your continued trust and confidence in CITI.
Authorized by God’s Holy Spirit and Written and edited by staff and Principe Jose Maria Chavira M.S. Adagio I – Owner of CITI and the World Banking System. Full Divine Name – JV AGNVS DEI VERBVM DEI – Principe Jose Maria Chavira Adagio Al Hussayni M.S. PRIMOGENITVS FILVS HOMONIS SPIRITVS Nome de Plume JCANGELCRAFT – the son of God in whom we trust.
The edited report – https://www.citigroup.com/citi/investor/quarterly/2015/annual-report/
Overview annual reports menu – – http://www.citigroup.com/citi/investor/overview.html#