Citigroup Research Paper

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Julian Son Brian Endo Kyle Fitzgerald Deepshekhar Gupta

Financials Research Group Report

Citigroup Inc. (NYSE: C)

Recommendation Rating: OUTPERFORM

Table of Contents Citigroup Company Overview………………………………...….2 History of Citigroup……….…………………………………...…2 Citi’s Management………………………………………………..3 Citi’s Products & Services………..……………………………....4 Citi’s Supply Chain Management and Distribution………………5 SWOT Analysis of Citigroup……………………………………..6 Analysis of Competitive Landscape and Industry Public Company Comparables……………………………...7 Industry Analysis……………………………………………8 Fundamental Analysis Benjamin Graham Analysis………………………………....9 Conclusion………………………………………………..……...11 Appendix…….…………………………………………………...12

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Company Overview Citigroup, Inc., a diversified financial services holding company, provides a range of financial products and services to consumers, corporations, governments, and institutions worldwide. The company operates through two segments, Citicorp and Citi Holdings. The company has approximately 200 million customer accounts and operates in approximately 160 countries and jurisdictions. As of December 31, 2011, it had 1,016 retail bank branches in North America; 292 retail branches in EMEA; 2,221 retail branches in Latin America; and 671 retail branches in Asia. Citigroup, Inc. was founded in 1812 and is based in New York, New York.

Brief History of the Firm Citigroup’s history dates back to the founding of Citibank in 1812. Citigroup’s original corporate predecessor was incorporated in 1988 under the laws of the State of Delaware. Following a series of transactions over a number of years, Citigroup Inc. was formed in 1998 upon the merger of Citicorp and Travelers Group Inc. *From Citi’s Long History of Overreach, Then Rescue, The Washington Post,

Binyamin Appelbaum (3/11/2009) “When Citicorp and Travelers Group agreed on a historic merger in 1998, the heads of the two companies placed a courtesy call to inform the Treasury Department. Then they held a news conference to suggest that Congress change the law to allow their union. Congress soon complied. It was a signature moment for a bank that has long taken big risks with the conviction that it is irreplaceable. Over the past century, Citigroup has repeatedly launched new strategies to make money, then stumbled and lost money, forcing the government to restore its health. The 1998 merger, an attempt to create a onestop shop for financial projects, ultimately faltered. Citigroup, with the help of tens of billions of dollars in government aid, is now dismantling itself, leaving behind a company that will resemble the old Citicorp, a bank focused on serving multinational corporations”

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Management Bios Chief Executive Officer and Director - Michael L. Corbat Mr. Michael L. Corbat, Mike has been the Chief Executive Officer of Citigroup, Inc. since October 16, 2012. Mr. Corbat served as the Head of Corporate and Commercial Bank of Citigroup Inc. until September 2008. Mr. Corbat served as the Chief Executive Officer of Citi Holdings, Inc., a subsidiary of Citigroup, Inc., and also served as its Head of Brokerage and Asset Management Unit - Citi Holdings. He served as an Executive Vice President of Citicorp. and Citibank. He served as Head of Global Relationship Bank of Citigroup Inc. He served as Interim Chief Executive Officer of Citi Holdings since January 16, 2009. Mr. Corbat joined Citigroup in 1983 in the Fixed Income Sales Department in Atlanta and worked in New York and London. Mr. Corbat has been a Director of Citigroup, Inc. since October 16, 2012. Chairman Emeritus and Senior Advisor – Sanford I. Weill Mr. Sanford I. Weill, Sandy serves as Senior Advisor of Citigroup Inc., and has been its Chairman Emeritus since April 18, 2006. Mr. Weill served as Chief Executive Officer of Citigroup Inc. from 1998 to 2003. He served as Chairman of Citigroup Inc. at Citibank Europe plc from 1998 to April 18, 2006. He served as a Director of United...
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