Card Issuer Profile: Citigroup

Content

• Overview
• Catalyst
  • Summary
  • Overview 1
  • Catalyst 1
  • Summary 1
  • Citigroup 5
  • Key findings 5
  • Company overview 5
  • Strategic focus 9
  • Company outlook 32
  • Datamonitor Competitor Benchmark 37
• Appendix 40
  • Data relating to the graphics in this profile 41
  • Methodology 42
  • Further reading 44
  • Ask the analyst 45
  • Datamonitor consulting 45
  • Disclaimer 45
  • Figure 1: Citigroup has a global presence, 2007 8
  • Figure 2: Cards are a very important revenue source for Citigroup in the US, 2005 10
  • Figure 3: Citigroup has made several strategic acquisitions,2006 11
  • Figure 4: The "Bank Card Lifecycle" informs Citigroup's strategy in different markets 12
  • Figure 5: Citigroup is expanding its presence in Russia, 2006 13
  • Figure 6: Citigroup is working to build its market share in the Middle East 15
  • Figure 7: More than three-quarters of Citigroup's issued cards are in the US 17
  • Figure 8: The value of balances outstanding in the US has grown, whilst in the US a higher proportion of balances outstanding are being securitized, 2004-2006 18
  • Figure 9: Citigroup's revenue and net profit has exhibited an upward trend, 2001 - 2006 19
  • Figure 10: Consumer is a very important revenue source for Citigroup, 2006 20
  • Figure 11: Two thirds of Citigroup's consumer revenue is earned in North America, 2006 21
  • Figure 12: Citigroup's cards business is growing in importance within the Global Consumer Finance Group, 2002-2006 22
  • Figure 13: Citigroup has an extremely large balance sheet, 2001-2006 24
  • Figure 14: Citigroup's "Thank You" reward program is one of the most successful in the business 29
  • Figure 15: The Citibank Home Rebate Credit Card offers considerable savings for home owners 32
  • Figure 16: The presence of Citigroup's Consumer division in Asia, 2005 35
  • Figure 17: Citigroup - Datamonitor's Benchmark 37
  • Table 1: Citigroup Board of Directors, 2006 6
  • Table 2: Income statement for Citigroup's Cards businesses 23
  • Table 3: Details of selected Citigroup reward card offerings in the US, 2006 26
  • Table 4: Details of Citigroup's consumer Value card range in the US, 2006 27
  • Table 5: Details of Citigroup's College card range in the US, 2006 28
  • Table 6: Citigroup's product range in Russia, 2006 28
  • Table 7: APR Buydown redemption rates on Citigroup's ThankYou reward program, 2006 31
  • Table 8: Scorecard logic, part one 38
  • Table 9: Scorecard logic, part two 39
  • Table 10: Citigroup's revenues, costs, and net profits, 2001-2006 41
  • Table 11: Citigroup net income by business Group, 2002-2006 41
  • Table 12: Consumer net income by region, 2002-2006 42
  • Table 13: Consumer net income by business function, 2002-2006 42
  • Table 14: Citigroup assets, 2001-2006 42
  • Table 15: Current relevant Datamonitor publications, 2007 44
  • Table 16: Future relevant Datamonitor publications, 2007 44
  • Citigroup
  • Key findings
  • Company overview
  • Background
  • Ownership and Management
  • Citigroup Board of Directors
  • Employees
  • Management Values
  • Company structure
  • Citigroup's cards business is part of the Global Consumer Group
  • Geographic coverage
  • Citigroup's international cards focus is on Asia-Pacific, Europe and Latin America
  • Strategic focus
  • Running its card businesses as separate entities lies at the heart of its success
  • Citigroup's growth strategy for cards incorporates both acquisitions and organic growth
  • In North America, Citigroup concentrates on growing its card portfolio organically
  • In established markets, Citigroup sometimes makes targeted acquisitions to maintain market share
  • In relatively under-developed markets, Citigroup has based its strategy on early market entry, heavy investment in sales and marketing, and organic growth
  • Card statistics
  • Number of cards in issue
  • Asia and Latin America are Citigroup's leading international regions
  • Citigroup's coverage in Europe is comparatively limited
  • Balances outstanding
  • Key financials
  • Profit and loss account
  • Balance sheet
  • Card product offering
  • In more developed markets, the focus is on loyalty and targeting niche segments
  • In less developed markets, Citigroup concentrates on growing cardholding largely through marketing
  • Product Innovation
  • Citigroup's "Thank You" reward scheme takes the points based program to new heights
  • Citigroup issues cards which can save cardholders money on their credit card bills or mortgage payments
  • Distribution
  • Company outlook
  • Citigroup's position in the US market is secure
  • Citigroup has a wide product range, leaving it well-placed for organic growth
  • Despite having a wide range of products, it is in distribution where Citigroup appears limited
  • However, saturation in the US market makes continued international expansion a priority
  • Citigroup's scale and expertise are the key to further international expansion
  • Citigroup has a strong platform in Asia and will look to further expand
  • Expanding into Russia and Latin America are also key strategic goals
  • A high level of market coverage in Western Europe has limited the scope for organic growth, but acquisition remains a real option
  • Datamonitor Competitor Benchmark
• Appendix
  • Affinity card
  • Charge card
  • Co-branded card
  • Commercial card
  • Credit card
  • Premium cards
  • Private label card
  • Data relating to the graphics in this profile
  • Methodology
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
• List Of Tables
  • Table 1: Citigroup Board of Directors, 2006
  • Table 2: Income statement for Citigroup's Cards businesses
  • Table 3: Details of selected Citigroup reward card offerings in the US, 2006
  • Table 4: Details of Citigroup's consumer Value card range in the US, 2006
  • Table 5: Details of Citigroup's College card range in the US, 2006
  • Table 6: Citigroup's product range in Russia, 2006
  • Table 7: APR Buydown redemption rates on Citigroup's ThankYou reward program, 2006
  • Table 8: Scorecard logic, part one
  • Table 9: Scorecard logic, part two
  • Table 10: Citigroup's revenues, costs, and net profits, 2001-2006
  • Table 11: Citigroup net income by business Group, 2002-2006
  • Table 12: Consumer net income by region, 2002-2006
  • Table 13: Consumer net income by business function, 2002-2006
  • Table 14: Citigroup assets, 2001-2006
  • Table 15: Current relevant Datamonitor publications, 2007
  • Table 16: Future relevant Datamonitor publications, 2007
• List Of Figures
  • Figure 1: Citigroup has a global presence, 2007
  • Figure 2: Cards are a very important revenue source for Citigroup in the US, 2005
  • Figure 3: Citigroup has made several strategic acquisitions,2006
  • Figure 4: The "Bank Card Lifecycle" informs Citigroup's strategy in different markets
  • Figure 5: Citigroup is expanding its presence in Russia, 2006
  • Figure 6: Citigroup is working to build its market share in the Middle East
  • Figure 7: More than three-quarters of Citigroup's issued cards are in the US
  • Figure 8: The value of balances outstanding in the US has grown, whilst in the US a higher proportion of balances outstanding are being securitized, 2004-2006
  • Figure 9: Citigroup's revenue and net profit has exhibited an upward trend, 2001 - 2006
  • Figure 10: Consumer is a very important revenue source for Citigroup, 2006
  • Figure 11: Two thirds of Citigroup's consumer revenue is earned in North America, 2006
  • Figure 12: Citigroup's cards business is growing in importance within the Global Consumer Finance Group, 2002-2006
  • Figure 13: Citigroup has an extremely large balance sheet, 2001-2006
  • Figure 14: Citigroup's "Thank You" reward program is one of the most successful in the business
  • Figure 15: The Citibank Home Rebate Credit Card offers considerable savings for home owners
  • Figure 16: The presence of Citigroup's Consumer division in Asia, 2005
  • Figure 17: Citigroup - Datamonitor's Benchmark