Joseph J. Plumeri is joining the Board of Directors of First Data, a KKR portfolio company. Having served 12 years as Willis Group chairman and CEO and as its non-executive chairman through July 2013, Plumeri strengthened Willis’ position as one of the world’s leading insurance brokers through industry-sector-leading organic growth and operating margins, strategic expansion, and a return to public ownership in 2001. Prior to joining Willis, Plumeri had a 32-year career at Citigroup and its predecessor companies. As CEO of Citibank North America, he led the integration of the consumer businesses at Citicorp and Travelers Group. He also served as chairman and CEO of Travelers Primerica Financial Services, vice chairman of the Travelers Group, and president and managing partner of Shearson Lehman Brothers.
Citigroup reported 2Q/10 net income of $2.7 billion or $0.09 per diluted share, on revenues of $22.1 billion, including Transaction Services with $929 million in net income, for a second consecutive profitable quarter. Provisions for credit losses and for benefits and claims declined $2.0 billion sequentially to $6.7 billion, the lowest level since the third quarter of 2007, reflecting continued improvement in credit quality. This helped increase Regional Consumer Banking’s net income by 16% sequentially to $1.2 billion. Citigroup has been focusing on Transaction Services and Regional Consumer Banking. Regional Consumer Banking (“RCB”) revenues were $8.0 billion, down $50 million, or 1%, sequentially, as declines in North America and EMEA were partially offset by continued growth in Asia and Latin America. Transaction Services revenues were $2.5 billion, up $65 million, or 3%, sequentially, with growth across all international regions. Transaction Services net credit losses were $1 million, flat compared to the prior quarter. The $35 million net loan loss reserve release in the quarter was $17 million higher than the prior quarter’s release. Net credit losses in Local Consumer Lending declined $403 million, or 8%, sequentially to $4.5 billion, mainly driven by Retail Partner Cards.
Equifax has launched “Debt Wise” which uses information from
the “Equifax Credit Report” to enable consumers to create a plan for
paying off their debt faster. The average subscriber can save over $30,000 in
interest and get out of debt 15 years quicker by following their Fast
Pay Plan. For less than $.50 per day, Debt Wise subscribers can create a personal
debt payment plan online in as little as 10 minutes, in the privacy and
comfort of their own home and receive access to highly rated, user
ranked features like “Monthly Progress Alerts” that help subscribers know if they are on
or off plan and when an account is paid off; “Credit Monitoring” and alerts within 24 hours of key changes to
their Equifax credit file; “Fast Pay Plan Wizard” that makes setting up a plan simple,
straightforward and flexible by automatically importing debts from the
“Equifax Credit Report” and enabling subscribers to decide which debts to
include in their payment plan; 4 FICO Scores every 12 months so subscribers can check their
credit score, as it may change over time; “Commitment Calculator” tool to simulate how paying additional
amounts towards debts could accelerate one’s debt freedom date; “Spend Smart Tools” that provide ideas on ways to save money and
spend wisely and “Identity Theft Insurance” of up to $25,000 with no deductible.
Citi has released its second quarterly TARP
Progress Report published today and titled, âWhat Citi is Doing to
Expand the Flow of Credit, Support Homeowners and Help the U.S.
Economy.â Citiâs TARP committee has authorized initiatives to deploy $44.75 billion across key areas of the U.S. economy to help expand the flow of credit to consumers, businesses and communities. The total includes $8.25 billion in new programs approved in the first quarter. The municipal lending program is intended to help finance the
construction of schools, airports, non-profit hospitals and other
infrastructure and capital projects. Loans made as part of the
initiative will provide âAAâ-rated municipal clients with access to
tax-exempt funding for three years for capital investment projects or to
refinance existing variable rate debt. Citi has already made proposals
to potential borrowers totaling more than half of the $5 billion
available under the program.In addition
to the municipal lending program, these new initiatives are: Supplier Financing â $2.0 billion to purchase trade receivables from
small and medium-sized businesses in the United States in order to
provide them with needed liquidity
Residential Mortgages â An additional $1.0 billion in mortgages to lend
to qualified borrowers to refinance their primary residences
Auto Loans â $250 million to lend to consumers via dealerships nationwide. As of March 31, Citi had put $8.2 billion of its approved TARP capital initiatives to work in the economy, primarily to purchase mortgage
securities in the secondary market, a critically important source of
funds that supports lending to home buyers. In providing access to funding that is currently unavailable
from other sources, Citi also expects the program to lower borrowing
costs and add funding flexibility for municipal clients.
Citibank reported that Global Cards GAAP revenues declined 10%, mainly
due to higher credit losses flowing through the securitization trusts in
North America. Average managed loans declined 7%, due to lower purchase
sales across most regions and the impact of foreign exchange. In North
America, GAAP revenues declined 17% as lower securitization revenues
primarily reflected the impact of higher credit
losses in the securitization trusts. Managed revenues increased 6%,
driven by a 252 basis point increase in the managed net interest margin
to 12.61%, partially offset by the absence of a prior-year gain on Visa
shares of $349 million. The managed net credit loss ratio increased 395
basis points to 8.88% in the Citi branded portfolio and 508 basis points
to 12.40% in the retail partners portfolio. The ratio reflects higher
net credit losses, exacerbated by the decline in average managed loans.
For complete details on Citi’s first quarter performance visit carddata.com.
A new survey from Citibank reveals that 84% of consumers feel making a
change to personal finances as a priority.
More than 75% of those surveyed said increasing their savings is
the top change they are looking to make in their banking this year,
while 37% are looking to maximize rewards
programs. Of those surveyed, 19- to 23-year-olds lead the way in
actively looking to change their money habits by increasing their
savings and taking advantage of rewards programs. In addition to
changing their banking habits, the survey found consumers are
also planning to reduce spending in the New Year, with dining out and
new clothing purchases being the first expenditures to go.
Approximately 60% of consumers plan to scale back eating at
restaurants in the next few months, 52% are cutting back on new clothing
and shoes. However, one-third of respondents are not willing to give up
their cable TV or cell phone service.
Citibank N.A. has
launched “Citi Online Remit”, a new online money transfer service to
India. “Citi Online Remit” provides Non Resident Indians the ability to
transfer funds to India from any US checking/savings account
or using a US credit/debit card as a direct transfer into the
beneficiary’s bank account or as a draft couriered to the beneficiary’s
mailing address in India. “Citi Online Remit” has a wide range of security features built into the
platform such as Online Identity Verification, Multi-Factor
Authentication, Global IP tracking and Account authentication. The
platform also offers an online tracking system that allows NRIs to
follow their transaction at every stage of the transfer process and
facilitates the scheduling of dates for future transfers by setting up
recurring transfer instructions. It is powered by the “QuikRemit” platform from Citi’s Global Transaction
Services which offers integrated cash management, trade,
and securities and fund services to multinational corporations,
financial institutions and public sector organizations around the world.
With a network that spans more than 140 countries, Citi’s Global
Transaction Services supports over 65,000 clients. As of the 4th quarter
of 2008, it held on average $292 billion in liability balances and $10.7
trillion in assets under custody.
Citigroup reported a $371 million fourth quarter loss for its North American Cards unit, compared to an $873 million loss in the prior quarter, and compared to a $322 million profit in the year ago quarter.
Fourth quarter revenues for North American cards dropped 28% year-on-year from $3.7 billion to $2.6 billion. The managed net charge-off ratio increased 294 basis points to 8.04% for North American cards from 4Q/07 and jumped 91 basis points from the prior quarter.
The 90-day delinquency ratio for North American cards increased 51 basis points from the prior quarter to 2.62%, and as compared to 1.77% for 4Q/07. Citi also reported 138.2 million open accounts at the end of the fourth quarter in North America, compared to 151.9 million one-year ago.
Purchase volume for North American cards dropped 15% to $75.7 billion, compared to $89.3 billion for 4Q/07. North American managed loans declined 1% year-on-year to $149.3 billion and down by nearly $1 billion from the prior quarter, due to lower purchase sales and balance transfer volumes, partially offset by a decline in payment rates across all portfolios. Citi also noted that North American Cards GAAP revenue declined due to lower securitization results and the impact of foreign exchange. For complete details on Citigroup’s 4Q/08 performance, visit CardData (www.carddata.com).
North American Credit Card Net Income
4Q/07: $322 million
1Q/08: $537 million
2Q/08: $178 million
3Q/08: (-$873 million)
4Q/08: (-$371 million)
Source: CardData (www.carddata.com)
Citi’s Global Transaction Services have been selected by Schering-Plough
to provide commercial cards. Citi offers
best-in-class reporting, wide acceptance and ability to integrate fully
with Schering-Ploughâs internal payment and expense management systems which
will enable Schering-Plough to streamline its corporate, purchasing and
fleet expenses. Citi offers the
most widely accepted commercial cards available, with acceptance at 27
million merchant locations and 1.5 million ATMs in 140 countries.
Citibank Korea has launched “Virtual Machine mobile banking service”.
CKI customers can execute fund transfers and GIRO
payments as well raise queries and request more information related to
saving, credit card and loan accounts. They will also be able to check
the latest FX rates. Current CKI Internet banking customers can apply
for, and download the
program via the Citibank web site. CKI is offering VM free services
until the end of the year.
While the service will be offered to SKT and KTF mobile phone
subscribers immediately, it will be made available to LGT mobile phone
customers in the near future.
Citi has added “Visa payWave” technology to its “Clear Card” program. Purchases under a total value of Rp200.000 can be processed via the contactless option. “Visa payWave” is currently available in 200 outlets across Indonesia with more than 1,000 outlets expected to offer the contactless payment option early next year. The new contactless “Citi Clear Card” is targeted at young, tech-savvy customers between the ages of 21 and 39. The newly enhanced card features “M2S” offers from Citibank merchant partners such as Cinema XXI, The Body Shop, Hard Rock CafÃÂ©, Embassy The Club, Public, Gloria Jean’s Coffee, Cold Rocks
Ice Creamery, Gelatissmo and many more. The “Clear Afterhours” program includes many eateries, cafes and bars where our customers can enjoy live music and ‘buy 1 get 1 free’ food and beverage offers. The “Citi Clear Card” was launched in Indonesia in 2003.
Citiâs “ThankYou Rewards Network” now enables members to redeem their points for products fulfilled through Amazon.com. Launched in 2004, the rewards program has grown to 13 million members. Citi recently expanded the rewards inventory of the “ThankYou Network” with a new online interface. The expanded range of categories includes everything from books, music and DVDs to electronics, home goods, and sports equipment. Citi Smith Barney and Expedia recently joined the network.
“ThankYou Networkâs Online Shopping Mall” features more than 300 brand-name online and in-store retailers. The rewards program is linked to Citi’s credit card and retail banking products. In October Citiâs “ThankYou Network” partnered with Citi Prepaid Services to introduce a new prepaid card rewards option for members. The prepaid cards are available in $25, $50 and $100 denominations. (CF Library 10/16/08)