Vikram Pandit, CEO, Citigroup
    New York, N.Y.
    As prepared for delivery
    Thursday, April 21, 2011

    Remarks by CEO Vikram Pandit at Citi's 2011 Annual Meeting

    Thank you, Mr. Chairman. Good morning and welcome fellow shareholders. Thank you for joining us today.

    2010 was a good year for Citi. We've come a long way since the last time I stood here and we've marked some significant milestones. Importantly, those accomplishments are being recognized.

    In 2010 we made money in every quarter. We also earned our first full-year profit—$10.6 billion—since the financial crisis. Our core businesses in Citicorp earned $14.9 billion and generated 59 percent of its revenues from its international operations—reflecting the strength of our global brand. We've attracted top new talent and our credit spreads have tightened significantly.

    In December, the U.S. government sold all of its common stock in our company. In total, American taxpayers earned a profit of more than $12 billion on their investment. We will always be grateful to the American people for their crucial support during the crisis.

    We continue to wind down Citi Holdings in a rational manner. In 2010, we reduced Holdings assets by $128 billion through sales and other actions—including the divestiture of The Student Loan Corporation and much of Primerica.

    I'm pleased that we are carrying this momentum forward into 2011. In the first quarter we delivered another strong performance, earning $3 billion. That's more than double our results from the fourth quarter of last year. Year over year, international consumer banking was up across the board, with revenues, earnings, credit margins, deposits, loans, card purchase sales and investment sales all increasing.

    In Citicorp, consumer and corporate loans grew on a combined basis of 10 percent year over year. Our capital strength continues to be among the best in the business: our Tier 1 Common ratio was 11.3 percent as of the end of the first quarter. Finally, our tangible book value has increased to $4.69 per share—up 15 percent since last year.

    Now I want to address something that I know is on a lot of your minds—the reverse split and the restoration of our dividend.

    After the close of trading on May 6, every 10 shares of Citi Common Stock will be converted to one share. This reverse split will not affect any shareholder's percentage ownership interest in Citi. Although the number and price of shares will change, the intrinsic economic value of the company and of your stakes will remain the same.

    After the split becomes effective, we intend to reinstate a dividend in the second quarter. Even at the nominal rate of a penny per share, this is an important step toward returning capital to you, our shareholders, something we are eager to do—and something we still expect to be able to do next year.

    We believe that these measures are in the best interests of our company and of you. These actions open doors for more potential investors to buy in. Some institutional investors will not buy stocks that trade at less than $10 or $5 per share or that do not pay a dividend. The reverse split will also bring Citi's outstanding shares and stock price in line with our peers.

    We have come a long way—and we continue to move forward. Earlier this year, we changed our management structure. John Havens took on additional responsibilities as President and Chief Operating Officer of Citigroup and now oversees all of the company's day-to-day operations. Many other senior executives have taken on new or expanded roles.

    But what I'm really excited about is how well our bank's strengths and strategy are aligned with the trends that are driving the world right now. And I'm proud of the way we are executing our strategy. Let me highlight a few key points.

    First, three years ago we made it our mission to get back to the basics of banking—and we are doing exactly that. Our role as a bank is to serve the real economy by serving clients. It's our job to help allocate capital to create jobs and drive growth.

    Lending is a fundamental banking responsibility. Last year, we increased our small-business lending by 33 percent—from $4.5 billion to $6 billion. We continue to provide long-term capital to support investments in infrastructure projects. We have also—through loan modifications and other means—helped more than a million Americans in their efforts to stay in their homes.

    As part of our commitment to Responsible Finance, we're also funding small businesses and micro entrepreneurs. Our $200 million Communities at Work Fund makes capital available to community development finance institutions with deep reach into underserved communities. We've also joined forces with the cities of Chicago, Miami and New York, among others, to finance affordable housing.

    Second, we are America's global bank. We connect American companies to the world. Our unique global network provides our clients with access to the world's highest growth markets and consumer bases. Name just about any country—and no other foreign bank got there first or has been there longer. Today, no international bank is better positioned to help American businesses tap the growing emerging market consumer base and harness trade and capital flows within emerging markets—both of which will be major drivers of global growth in the coming years. By helping companies globalize, we help them diversify their revenues, grow their earnings and create jobs and wealth right here at home.

    For example, in 2010 we launched a $1 billion partnership with the U.S. Export-Import Bank, to offer relief from credit constraints to American small and middle-sized businesses. The program currently supports 4,500 companies and many of our clients plan to grow significantly with the help of these increased credit lines.

    Third, we are focused on becoming the world's digital bank. Consumers will demand nothing less of us as they become more and more reliant on the convenience of technology in every aspect of their lives. Our global footprint and our innovative culture position us to win in the digital space. Already I've personally witnessed the opening of high-tech and smart branches in Japan, Hong Kong and nearby in Union Square. And we will do more in coming years. Digital trends also will significantly affect our institutional businesses, through improved efficiency, more dynamic trading approaches, and better ways to deliver products and services to our clients.

    Fourth, I've spoken a great deal in recent months about financial inclusion. Part of the mission of any financial institution should be to promote financial inclusion—and it is for us. The Citi Foundation supports a variety of non-profit organizations that work to bring financial services within reach of the world's 2.5 billion unbanked. We also work through our for-profit business lines to promote financial inclusion in our day-to-day activities. We will continue our efforts to become the leading financial institution in promoting financial inclusion.

    Finally, I encourage everyone who has an iPad to download our new app on which you can view our 2010 Annual Report. More functionality—including access to important press releases, earnings information and other announcements—is on the way. And, for next year, I also encourage everyone who does not need a paper copy of the Annual Report to sign up for electronic delivery. The savings in printing costs and benefits for the environment are well worth the few seconds it takes to elect this option.

    Before I close, I want to thank the members of our board—and particularly you, Mr. Chairman—for their guidance, support and hard work. I thank my colleagues in management for their tireless execution of our strategy. I want to thank the 260,000 people who operate every aspect of this business on a day-to-day basis. Their hard work, dedication, and professionalism saw us through the financial crisis, restored our profitability and will see us achieve much more in years to come. Finally, I want to thank you, our shareholders, for your support and patience. I am honored and pleased to be able to give you this report today.

    Thank you. Now we're happy to take your questions.