The new Citi.
By Citi March 17, 2010 06:12 PM
Citi's CEO Vikram Pandit's letter to shareholders can be found in the new 2009 Annual Report. In it, he outlines the strong progress the firm made during the year as a "New Citi" emerged from a very challenging period in the financial services industry.
Mr. Pandit notes that Citi today is fundamentally different from the company of which he became CEO two years ago. Today, Citi is operating on a very strong foundation and is positioned to contribute to the economic recovery and generate sustained profitability for the benefit of all its stakeholders.
Citi has bolstered its financial strength, overhauled risk management, reduced risk exposures, defined a clear strategy and made the company a more focused enterprise by returning to banking as the core of its business. Mr. Pandit notes that Citi is now one of the best-capitalized banks in the world, with a Tier One Capital ratio of 11.7%, a Tier One Common ratio of 9.6% and loan loss reserves of $36 billion.
Mr. Pandit also thanks the U.S. government for providing Citi with TARP funds. For Citi, as for many other institutions, this investment built a bridge over the crisis to a sound footing on the other side, and it came from the American people. Citi has repaid the TARP investment the government made in December 2008 with a substantial return for taxpayers, and the value of the equity investment the government made in Citi has increased significantly. Mr. Pandit notes Citi also exited the loss-sharing arrangement with the government. Read the letter and annual report here.