FOR IMMEDIATE RELEASE
June 05, 2002
 
Welcome to the Wired Index: Citigroup Joins Elite Group
 
Editors note: On Wednesday, June 5, the New York Stock Exchange hosted a reception and panel discussion for leaders of companies named to the Wired Index (IWIRX). Founded in 1998, the Wired Index is a group of 40 companies selected by the editors of WIRED magazine to track the transformation of business by the information economy. This year Citigroup was named to the index for its innovative technology in the financial services industry. Kate Sullivan, president and chief operating officer of Citigroup’s e-Citi and Global Cross Marketing, participated in the event. Below are her prepared remarks.
 
New York, NY — All of us at Citigroup are extremely pleased to be recognized for possessing the qualities that you believe make us a candidate for the Wired Index. I was asked to tell you a little about Citigroup, but there’s nothing little about Citigroup. So here are just a few facts:
  • Some 200 million customer accounts;
  • We are present in over 100 countries around the world where 90% of our employees are locals;
  • Transacting in 128 currencies;
  • During the First Quarter we processed $390 Billion in corporate transactions through our new internet payments vehicle, Citi Direct;
  • We have $4.8 trillion total assets under custody;
  • Over 108 million credit cards accounts;
  • 18 million Internet accounts;
  • Core income of $14.6 billion last year;
  • And FORBES Magazine announced Citigroup “America’s Biggest Corporation” in April, 2002.
  • Our brands include Citibank, CitiFinancial, Primerica, Salomon Smith Barney and Banamex.
With a market capitalization of over $215 billion and a history that stretches back to 1812, we shout “Old Economy.” But, here we are tonight being recognized by Wired magazine.
 
Sandy Weill, our CEO, has built Citigroup by bringing together the best people. His strategy is simple — develop partnerships that create value and expand our reach. It is how we execute this strategy that allows us to have both feet firmly planted in what has become known as the New Economy. But we have not neglected the values we embraced and lessons we learned in the Old.
 
Inscribed in the lobby of the Science, Industry, and Business Library on Madison Avenue is the following inscription: “Information about money has become almost as important as money itself.”
 
That lesson from former Citi chairman Walter Wriston has not been lost on us. We have been known as a technology leader ever since he said it over 25 years ago.
 
How would I define the New Economy and the challenges that face Citigroup in it? First of all, it’s not new. And, it’s not an economy. It’s probably best described as a state of mind that evaporated about 18 months ago. Sometimes up, sometimes down, there is only one economy.
 
At Citigroup, our challenge is to make it work for our customers and our shareholders no matter what its current state. We do strongly believe in the power of technology to create business opportunity. But we also think that revenue ought to exceed expenses.
 
This fundamental and disciplined approach works for us. Our consistent revenue and earnings performance have proven that. In the past 2 months alone, we have added over half a million new Internet accounts. Customer calls plunged when we introduced wireless alerts in India. And we are well on our way to achieving a goal established last year of getting a billion dollars out of our expense base by the end of the year.
 
We are using and re-using technology to service existing customers, getting new customers and taking cost out of our operations. In the First Quarter of 2002 we had a 5% growth in revenue and a 6% reduction in expenses. Now that has the arrows going in the right direction.
 
The hard part for us is balancing the investment decision with the expected return. This balancing act – well executed – is what will separate the winners from the losers.
 
 
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Citigroup (NYSE: C), the preeminent global financial services company with some 200 million customer accounts in more than 100 countries, provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Salomon Smith Barney, Banamex, and Travelers. Additional information may be found at: www.citigroup.com.