IN THE NAME OF ALLAH, WHO IS MOST GRATIOUS AND MORE MERCIFULL.

Principle of Management

FINAL PROJECT

PRESENTED TO

MR. Ejaz Hussain

SUBSIDISRIES OF THE CITI GROUPGrupo Financiero Banamex Citi Commerce Solutions Citibank Citicorp Venture Capital Ltd., Inc. Hoover Materials Handling Group, Inc.CitiFinancial Citigroup Geneva Capital Strategies Inc. Citigroup Global Markets Holdings Inc. Citigroup Global Markets Europe LimitedCitigroup Private Bank CitiMortgage, Inc. CitiStreet LLC Nikko Citigroup Limited Primerica Financial Services, Inc. Remy International, Inc.

OVERVIEW

Another day, another dollar -- 47 million of them. That's approximately what Citigroup, the world's largest financial services firm, reaped in net profits -- that’s profits -- every single day of 2004. The first domestic bank with more than $1 trillion in assets, Citigroup and its myriad subsidiaries offer deposits and loans (mainly through Citibank), asset management, insurance, investment banking, and practically every other retail and corporate financial service you can think of. The company has more than 3,000 bank branches & consumer finance offices in the US and Canada, plus an additional 1,500 locations in about 100 other countries.

CitiBank's mission is to improve the quality of life for children, families, and the neighborhood where we all live and do business. We in Kenya share in this mission and are committed to achieving it.

MISSION STATEMENT

GOVERNING BODYChairman Sanford I. (Sandy) Weill

CEO& Director Charles O. (Chuck)

Prince IIIPresident, COO,& Director

Robert B. (Bob) Willumstad

Company Type Public (NYSE: C)

Fiscal Year-End December

2004 Sales (mil.) $108,276.0

1-Year Sales Growth 14.3%

2004 Net Income (mil.) $17,046.0

1-Year Net Income Growth

(4.5%)

2004 Employees 294,000

1-Year Employee Growth

13.5%

v/s Pakistan Budget

• Profit /Year $16 Billion

• Pakistan Budget $9 Billion

History of World #1 Bank

• Introductory Stage 16 june 1812

• Total Assets $2 million• Growth Stage 1894• First Bank In Assets $1 Billion• Citibank Incorporated 1998• Highest Accounts of the world 20 Crore• Total Assets In 2004 6 Trillion

Citibank Pakistan's Milestones of the 90's

The nineties were a decade of domination and leadership for Citibank in the Pakistani marketplace and the trend continues into the new millennium.

1990

Consumer Bank was established. 1992

•Consumer Asset Business is launched. •Car Financing is introduced. •CitiGold Priority Banking is established. •CitiPhone Banking launched.  1994

Citibank Visa Card (Gold and Silver) is launched

1995

Self-Service Banking launched. 1996

•Citibank, N.A. launches its Intranet System in April.

•First bank to launch a Photo Credit Card. 1997

•Citibank wins over 35 awards under the Euromoney Excellence Awards. These awards included "Best Bank" and "Best Emerging Market Bank" for two successive years. •Citibank Credit Cards acquire 100,000 members in less than 3 years

Citibank

Gold Credit Card The Citibank Gold Credit Card is specially designed for you, your exclusive life style and your special needs. As a Gold Credit Card member you enjoy a higher Credit Limit and a preferred status throughout the world. If you have a monthly income of Rs.50,000 or above, and you are a Pakistani citizen, then you are eligible to apply for a Citibank Gold Credit Card.

Citibank

Silver Credit Card

The Citibank Silver brings you the convenience and financial flexibility you can expect from the World's No. 1 Credit Card. The Silver Card is a truly international Credit Card offering unmatched features and benefits and complete peace of mind. If you have a monthly income of Rs.16,000 (Rs 8,000 for selected corporate employees) and are a citizen of Pakistan then you are eligible to apply for a Citibank Silver Credit Card.

CitibankShaheen Credit Card The Citibank-Shaheen Credit Card is the first Affinity Card in Pakistan, offered exclusively to Pakistan Air force and Shaheen Foundation personnel. Out of every rupee spent on a Citibank-Shaheen Credit Card, Citibank will contribute a percentage to Shaheen Foundation and to the welfare of our Air force personnel.

Owning A Home Was Never So Easy

Turn your dreams into reality. With Citibank's Own a Home you can purchase your own home on low monthly installments through a simple and hassle free process

If you can't find your dream home we'll help you build one and furnish it tooWith Citibank Home Maker loans, you can construct and furnish your ideal home.

Your Home is More Resourceful Than You Think..... Have you invested your life savings into your house? With Citibank s Home Power let your home finance your family's future..... Loans against residential property for the purchase of business assets, furnishing or home improvement and financing of children's education.

Highest Loan AmountsYou can avail a loan from Rs. 3 lacs to Rs. 75 lacs to purchase the perfect home.

Easy Monthly InstallmentsYou can pay back your loan in easy and affordable monthly installments spread over 3 to 20 years.

High Loan to ValuesCitibank finances upto 70% of loan against value of property.

Lowest Rates on Property & Life InsuranceWe have made special arrangements with major Insurance Companies to provide you with very low and attractive Property and Life Insurance rates.Business man upto 12.24% &Salaried Class upto 10.74%

•PricingChoose the mark-up rate that suits you best. We offer three different kinds of mark-up rates – the Adjustable Rate and Flexi Fixed Rate

Flexible PaymentsCitibank Home Loans gives you the unique option of reducing your principal balance through partial and full pre-payments or through the step-up payment plan for a nominal fee. This will allow you to reduce your overall mark-up costs as and when you have access to additional funds.

Minimum Processing FeesWe offer you your dream home at a minimal processing fee. Our panel of experts take care of legal and appraisal formalities. They strive to ensure that the property you are purchasing is at the right price and has proper documentation. Our process guide gives you the breakup of our processing fees.Clubbing of Spouses incomeTo avail the facility of obtaining a higher loan amount, Citibank Home Loans offer you the option of adding your spouse's income to arrive at the maximum loan amount.

With Citibank Car Financing getting a car is hassle free and offer the best value to a person like you.

Upto one year of Free** Financing

Citibank Car Financing

Special OfferNo Documents Required, all you need is your Computerized National Identity Card duly attested by a gazettes officer. Low Down Payment Special Insurance OptionAffordable to suit your pocket No more first year insurance to be paid up front, Citibank Car Financing offers you first year's insurance premium as part of the loan. 

Citibank Car Financing Additional Benefits 24-hours access to CitiPhone Banking. Wide range of dealership network. Value added comprehensive insurance at competitive rates. Pre-approved* Citibank Credit Card. Application Processing Charges Rs 4,000 in case application is not approved

Citibank Car Financing now offers a great Used Car Financing program that gives you convenient options for purchasing a car

Eligibility You are at least 21 years of age at the time of financing and will be less than 65 years for self-employed or 60 years for salaried before full repayment of loan. Other eligibility conditions also apply Processing Charges: Rs 4,000Vehicle Evaluation Charges (non-refundable) Rs 1,000 (if applicable)

With Citibank Cash Against Car get a loan and use it for anything you want.So while you get the cash you need now, you also keep your vehicle.Mark-up rates as low as 12.99%*.Upto 7.5 lacs of cash.Upto 5 years payback period.

Eligibility You are at least 21 years of age at the time of financing and will be less than 65 years for self-employed or 60 years for salaried before full repayment of loan. Maximum age of the car at loan maturity should not exceed 6 for upto 1000cc vehicles and 8 years for greater then 1000cc vehicles. Maximum age of the vehicle at the time of loan inception should not exceed 5 yrs. Different pricing may apply to different types of customers and tenors. Other eligibility conditions also apply. Call Citiphone for further details. Processing Charges (non-refundable): Rs 4,000Vehicle Evaluation Charges (non-refundable): Rs 1,000

The difference between living a life & enjoying it

Flexible TenureTake a loan for a period ranging from 12-60 months depending on your needs 

Loan AmountGet loan amounts starting from Rs 25,000 and going up to a maximum of Rs. 500,000 

Easy Monthly InstallmentsAs you will be paying in equal monthly installments over the period of your tenor, there is no need to stress about your next monthly installment.

No Collateral/ Guarantor requiredAs a Personal Loan is an unsecured loan, you do not have to provide us with a collateral or a guarantor to avail this facility.  

Easy Documentation & Quick DisbursalYou do not have to worry about excessive documentation to get the loan, just provide us with an attested copy of your CNIC and a salary certificate and/or bank statement and on approval the cash would be at your doorsteps at the earliest. 

Affordable Pricing & Excellent ServiceWe offer extremely competitive and affordable pricing which goes hand in hand with our Best in Class Service.

•Resident and Non-Resident Pakistanis •Local and foreign companies (except banks and financial institutions) •Foreign nationals residing in Pakistan.

Resident and Non-Resident Pakistanis Local and foreign companies (except banks and financial institutions) Foreign nationals residing in Pakistan.

CORPOTRATE SECTOR

•Areas of facilities & services given by The Citibank in Pakistan for corporate sector are as given

ClientAmount

Date

         

Government of Pakistan

USD 150.0 million

1996

         

Dewan Salman Fibre Limited

USD 45.0 million

1994

         

DG KhanUSD 20.0 million

1994

         Pakistan Telecommunications Company Ltd.

USD 15.0 million

1994

ClientAmou

ntDate

       Pakistan Mobile Communication (Pvt.) Ltd

1,400 million

2000

       Pakistan International Airlines

3,000 million

1999

       

Clariant200 million

1999

       Askari Leasing Limited

146 million

1998

       

Dewan Group650 million

1998

Daewoo Corporation

1,000 million

1998

       

Daewoo Corporation

1,500 million

1998

       Pakistan Tobacountry corporate officer Co. Ltd

200 million

1998

       

Engro Chemicals Pakistan Limited*

6.6 billion

1997

       Dawood Hercules Chemicals Limited*

4.5 billion

1997

       

Kot Adu Power Company

4,500 million

1997

       

Sui Northern Gas Pipelines Limited

500.0 million

1996

       

International Brands Limited

410.0 million

1995

       

Pakland Cement 300.0 million

1995

       Water and Power Development Authority

1,150 million

1994

       Water and Power Development Authority

1,195 million

1993

       Pakistan Telecommunications Corporation

1,075 million

1993

       

ATM

LAHORE KARACHI ISLAMABAD FAISALABADRAWALPINDI

Banks have information systems and analytical techniques that enable management to measure the credit risk inherent in all on- and off-balance sheet activities. Banks have in place a system for monitoring the overall composition and quality of the credit portfolio.

RISK MANAGEMENT

PRINCIPLES FOR THE MANAGEMENT

OF CREDIT RISK• Credit risk is the potential

that a bank borrower or counter party will fail to meet its obligations in accordance with agreed terms.

• The goal of credit risk management is to maximize a bank’s risk-adjusted rate of return by maintaining credit risk exposure within acceptable parameters.

How To Assess Bank’s

Management Of Credit Risk

• The board of directors have responsibility for periodically (at least annually) reviewing the credit risk strategies.

• Senior management have responsibility for implementing the credit risk strategy which approved by the board of directors.

• Banks operates within sound, well-defined credit-granting criteria.• Banks establish overall credit limits at the level of individual borrowers and counter parties. •Banks have in place a system for the ongoing administration of there various credit risk-bearing portfolios.•Banks have in place a system for monitoring the condition of individual.

•Banks have information systems and analytical techniques that enable management to measure the credit risk inherent in all on- and off-balance sheet activities. •Banks have in place a system for monitoring the overall composition and quality of the credit portfolio.

THANKYOU