2021 ANNUAL REPORT
Citi is working with Gavi, the Vaccine Alliance, as the financial advisor for its COVAX Facility, which is supporting the fair and equitable distribution of COVID-19 vaccines around the world.
Citi’s Value Proposition
A Mission of Enabling Growth and Progress
What You Can Expect From Us and What We Expect From Ourselves
Citi's mission is to serve as a trusted partner to our clients by responsibly providing financial services that enable growth and economic progress. Our core activities are safeguarding assets, lending money, making payments and accessing the capital markets on behalf of our clients. We have 200 years of experience helping our clients meet the world's toughest challenges and embrace its greatest opportunities. We are Citi, the global bank - an institution connecting millions of people across hundreds of countries and cities.
We protect people's savings and help them make the purchases - from everyday transactions to buying a home - that improve the quality of their lives. We advise people on how to invest for future needs, such as their children's education and their own retirement, and help them buy securities such as stocks and bonds.
We work with companies to optimize their daily operations, whether they need working capital, to make payroll or export their goods overseas. By lending to companies large and small, we help them grow, creating jobs and real economic value at home and in communities around the world. We provide financing and support to governments at all levels, so they can build sustainable infrastructure, such as housing, transportation, schools and other vital public works.
These capabilities create an obligation to act responsibly, do everything possible to create the best outcomes, and prudently manage risk. If we fall short, we will take decisive action and learn from our experience.
We strive to earn and maintain the public's trust by constantly adhering to the highest ethical standards. We ask our colleagues to ensure that their decisions pass three tests: they are in our clients' interests, create economic value, and are always systemically responsible. When we do these things well, we make a positive financial and social impact in the communities we serve and show what a global bank can do.
Jane Fraser became CEO and set a path for Citi to win in the digital world
Created Global Wealth Management to capitalize on the extraordinary rise in wealth creation
Launched Citi Self Invest, a no-fee digital app that expands access to wealth management
Streamlined Citi's consumer presence to focus on businesses with higher-return opportunities
Launched Citi Custom
Cash card to meet evolving needs of the digital consumer
Reached $20 billion in
digital deposits in the U.S. Retail bank
Submitted our Transformation plans to regulators to create a best-in-class risk and controls environment
Established a new, hybrid model for the future of work and welcomed nearly 47,000 new colleagues
Won two key custodial mandates including the management of nearly $1 trillion in ETFs
Expanded the industry's largest instant payment network now present in 28 markets
Facilitated landmark deals of 2021 including the largest merger of two Asian internet companies to date
Served as the active bookrunner for the largest USD transaction of 2021 which was also the sixth-largest USD transaction of all time
Grew Prime Finance balances by 23% outperforming the market index by 3%
Our vision for Citi is to be the pre-eminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in our home market. A key part of our strategy is investing in the Services businesses that are the heart of our global network and generate strong, fee-based returns. Through our Commercial Bank, we will expand our work with mid-sized companies who have aspirations to go global.
Another priority is our ambition in wealth management. By combining our Private Bank and consumer wealth businesses, we are creating a single, integrated platform to serve affluent consumers up through the ultra-high net worth segment. This also allows us to target clients in the middle of the wealth continuum, which to date has been largely untapped territory for us despite already having relationships with them in the Commercial Bank.
A Snapshot of Citi's 2021 Financial Performance
2021 Key Financial Metrics
CET1 CAPITAL RATIO
LIQUIDITY COVERAGE RATIO
GREW OUR TANGIBLE BOOK VALUE PER SHARE BY
IN CAPITAL TO OUR SHAREHOLDERS
Key Highlights across Our Businesses (YoY)
INVESTMENT BANKING REVENUES
SECURITIES SERVICES REVENUES
EQUITIES MARKETS REVENUES
TREASURY & TRADE SOLUTIONS AVERAGE TRADE LOANS
AVERAGE U.S. CONSUMER DEPOSITS
U.S. CREDIT CARD SPEND VOLUME
PRIVATE BANK REVENUES
U.S. INVESTMENT ASSETS UNDER MANAGEMENT
As we focus our resources in a more targeted way, we also have made some hard decisions about which businesses no longer fit into our vision for Citi. We have announced our intention to exit 14 of our consumer businesses in Asia, Europe and Mexico where there was not clear connectivity to the rest of our franchise. In every case, we are working to reach solutions that will provide optimal results for our people, clients and shareholders. Notwithstanding these decisions, Citi will continue to serve clients and invest in these markets through our institutional franchise and our Global Wealth Management business.
For our strategy to unlock the greatest possible value, we know we need an infrastructure that is scaled and agile and delivers a great user experience. The Consent Orders issued in 2020 by two of our U.S. regulators – the Federal Reserve Board (FRB) and Office of the Comptroller of the Currency (OCC) – underscored how we have underinvested in some of those areas for too long. In 2021, we launched an effort to address those deficiencies and simplify and modernize our operating model for the digital age. This work is so fundamental and consequential in nature that we call it our Transformation.
As part of our Transformation, we are enhancing our risk and controls environment to be more intuitive and automated. We are also improving how we organize and leverage the incredible amount of data we have as a global bank. Data can be a competitive advantage for us, helping us manage risk more efficiently, comply with regulations, deliver with excellence for our clients, identify revenue opportunities and achieve efficiencies.
Ensuring we have a culture characterized by excellence underpins the success of our Transformation. We have updated our leadership principles and adjusted our performance rating system, part of an effort to raise expectations and to increase accountability for how our people should approach their work. And by breaking down silos and deepening the sense of ownership that our people feel for the firm, we are building a culture that’s focused on delivering the best outcomes for all our stakeholders.
In 2021, we submitted our plan to the FRB and OCC. From the beginning of this work, we have been staying close to our regulators and keeping them updated on our progress. But it’s also important to note that our Transformation goes far beyond remediation. This is about modernizing our systems and structures so that we can better manage the speeds and complexities of the digital world. This is about putting Citi in the position to compete and win.
Taking into account our growth plan, the investments we are making in our businesses and efficiencies that will come out of our work, we believe we can increase shareholder value and achieve an RoTCE of 11%-12% in the next three to five years. Over the longer term, I believe that our strategy will lead to a higher-quality earnings mix, and we’ll further increase our returns as a result.
A bank with a brain and soul
Our environmental, social and governance (ESG) agenda builds on decades of leadership and is a reflection of the special responsibility we feel as a global bank to help solve many of society’s toughest challenges, such as the impending climate crisis. On my first day as CEO, we committed Citi to achieving net zero greenhouse gas emissions by 2050. Over the past year, we have been hard at work mapping out how we are going to get there, rolling up our sleeves to partner with our clients and guide the industry forward. Earlier this year, we released our initial plan, setting 2030 targets for our energy and power loan portfolios.
Our commitment to societal progress has also led us to take on the challenge of economic inclusion. Since launching our Action for Racial Equity initiative in 2020, we have invested more than $1 billion to help close the racial wealth gap in the U.S. That includes investing in Black-founded companies through our Citi Impact Fund, investing in minority depository institutions and inviting them to participate in revenue-generation opportunities alongside Citi, and committing equity to Black real estate developers to preserve affordable and workforce housing.
Across the globe, we have continued maximizing the impact we can make through financial innovation, particularly in our most underserved communities. Since 2007, we have helped 3.7 million women around the world launch or grow their businesses. In 2021, we issued a first-of-its-kind $1 billion social finance bond to increase access to essential services in emerging markets - part of a goal we set last year to expand access to housing, education and healthcare for 15 million low-income households, including 10 million women. Our recently announced plan to eliminate overdraft fee charges in the U.S. will also increase financial inclusion.
All told, we have committed $1 trillion to sustainable financing by 2030, which includes $500 billion toward environmental activities and $500 billion toward social activities. And every day, we are seeing how our ESG agenda is such a strong selling point for Citi in the perennial battle for talent.
Ensuring we have the right talent is critically important to our firm's success. Over the past year, we have attracted some tremendous new leaders to Citi and promoted our highest-performing leaders within the firm to new roles. I’m also proud that we recently met and exceeded goals to increase the representation of women and Black colleagues in our senior ranks - and we did so by embedding these goals in our business strategy, strengthening our talent pipelines, evolving our recruitment and hiring, promoting internally and making Citi a more attractive place to work. In other words, we lifted everyone up.
As we look to the horizon, the stakes could not be higher – the world is only becoming more complex and more competitive. But at Citi, we are determined to seize this moment. We are excited about the work we have done over the past year to focus our strategy on where we can win. And we are confident we have put Citi on the right path to improve returns over the long term and deliver the full benefits of our firm to all our stakeholders.
Chief Executive Officer, Citigroup Inc.
2See page 11 of Citi's 2021 Form 10-K.
3See page 11 of Citi's 2021 Form 10-K.
4See page 16 of Citi's 2021 Form 10-K.
Through Bridge Built by Citi, Citi aims to expand access to capital for small and medium-sized businesses in the U.S. while widening the customer base for lenders, helping to democratize the loan process.
EMBEDDING ESG ACROSS OUR BUSINESSES
plans to achieve
Served as the financial advisor to Gavi's COVAX facility, which is working on the equitable distribution of COVID-19 vaccines
Successfully met and exceeded 3-year goals to increase representation of Black and women talent at the firm
Committed $1 trillion to sustainable finance by 2030 ($500 billion for environmental activities and $500 billion for social activities)
Issued a first-of-its-kind $1 billion social finance bond to increase access to essential services in emerging markets
Invested over $1 billion in our Action for Racial Equity initiative to help close the racial wealth gap in the U.S.
Expanded the $200 million Citi Impact Fund to provide capital for "double bottom-line" companies
Named leading affordable housing lender in the U.S. for 11th consecutive year, and financed $5.64 billion for affordable housing units across the U.S. in 2021
Granted $275 million to date to support Citi Foundation's Pathways to Progress initiative to improve economic opportunities for underserved youth
Named one of the top
15 most responsible and purpose-driven companies by JUST Capital
Co-founded the Net Zero Banking Alliance to help guide the industry to net zero
Supported 3.7 million women entrepreneurs globally to date in launching and growing their businesses
See how Team Citi is making history and helping change perceptions at citi.com/ParaSport
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