ANNUAL REPORT 2002

We take this opportunity each year to reaffirm our company’s values, which are both
descriptive and aspirational. Values are meaningful to the extent that they are lived, not merely spelled out
in a company document. As described in this Annual Report, we are taking new measures to live our values.

WE ARE AN ECONOMIC WE VALUE A WORKPLACE WE VALUE PEOPLE WHO… WE ASPIRE TO BE

ENTERPRISE WITH… WHERE… take the company personally.
KNOWN AS…
a relentless focus on growth, bureaucracy is discouraged, They care about each other, the a company with the highest
aiming to increase earnings by entrepreneurial thinking is fos- quality of our products and serv- standards of moral and ethical
double digits on average. tered, and decision-making is ices, and above all, their value to conduct—working to earn
streamlined by an “open-door” our customers and shareholders. client trust, day in and day
management style. out. Our word is our bond.
a global orientation, but with
deep local roots in every market are committed to a strong work
where we operate. diversity is embraced, particularly ethic and are constantly striving to the leader in global financial
in light of our globality. excel in serving their customers. services, with market leadership
in every one of our major activi-
a highly diversified base of ties, and one of the great
earnings that enables us to employees think and act like are more interested in teamwork
companies in the world.
prosper under difficult market owners because they ARE owners. than in internal politics.
conditions.
a company where the best
mistakes are tolerated, admitted, lead by example, giving credit to
people want to work, and the
capital employed in higher- and addressed before they become others for success and assuming
first choice of where customers
margin businesses, each one of real problems. personal responsibility for failure.
want to do business.
which is capable of profitable
growth on a stand-alone basis.
people are promoted on their have a sense of urgency and
customer centered, providing
merits rather than on their tenure, excitement, demonstrate candor,
unparalleled levels of service as a
financial strength protected by and rewarded for their perform- insight, and creativity, and thrive
means of protecting and building
financial discipline, enabling ance within the context of what in an environment of change,
our business franchise over time.
us to take risks commensurate they can personally control or challenge, and competition.
with rewards to capture attrac- influence.
tive opportunities. an organization people can trust
are top performers and are com-
—doing what we say and report-
people treat each other with mitted to excellence in whatever
ing results with accuracy and
a close watch on our overhead mutual respect and dignity. they do.
objectivity.
costs, but a willingness to
invest prudently in our
infrastructure—we spend people truly feel that, no matter a company dedicated to
money like it’s our own. how large we grow, each and community service, taking a
every one of us can make a leadership role in every local
difference. community around the world in
a focus on technological which we operate, and making
innovation, seamlessly deliv- each community a better place
ering value to our customers because we are there.
across multiple platforms.
Financial highlights
CITIGROUP NET INCOME—PRODUCT VIEW
In millions of dollars, except per share amounts 2002 2001 % Change

SEGMENT INCOME
GLOBAL CONSUMER GROUP
Cards $3,125 $2,536 23%
Consumer Finance 2,210 1,905 16
Retail Banking 3,230 2,508 29
Other (140) (113) (24)
TOTAL GLOBAL CONSUMER GROUP 8,425 6,836 23

GLOBAL CORPORATE & INVESTMENT BANK

Capital Markets & Banking 3,871 3,887 -
Transaction Services 521 407 28
Other 1 (1,363) 52 NM
TOTAL GLOBAL CORPORATE & INVESTMENT BANK 3,029 4,346 (30)

SMITH BARNEY (PRIVATE CLIENT GROUP) 722 767 (6)

GLOBAL INVESTMENT MANAGEMENT

Life Insurance & Annuities 836 836 -
Private Bank 456 368 24
Asset Management 521 392 33
TOTAL GLOBAL INVESTMENT MANAGEMENT 1,813 1,596 14

PROPRIETARY INVESTMENT ACTIVITIES (448) 318 NM

CORPORATE/OTHER (93) (634) 85
INCOME FROM CONTINUING OPERATIONS $13,448 $13,229 2%
Income from Discontinued Operations 2
1,875 1,055 78
Cumulative Effect of Accounting Changes 3 (47) (158) 70

NET INCOME $15,276 $14,126 8%

DILUTED EPS
Continuing Operations $2.59 $2.55 2%
Net Income $2.94 $2.72 8%
NET REVENUE $71,308 $67,367 6%
RETURN ON AVERAGE COMMON EQUITY 18.6% 19.7%

1 2002 includes a $1.3 billion after-tax reserve for settlement-in-principle and charge for regulatory and legal matters.
2 On August 20, 2002, Citigroup completed the distribution to its stockholders of a majority portion of its remaining
ownership interest in Travelers Property Casualty Corp. (TPC). Following the distribution, Citigroup began accounting
for TPC as discontinued operations. See Note 4 to the Consolidated Financial Statements.
3 Accounting change in 2002 of ($47) million results from the adoption of the remaining provisions of SFAS 142.
Accounting changes in 2001 of ($42) million and ($116) million include the adoption of SFAS 133 and EITF Issue
No. 99-20, respectively. See Note 1 to the Consolidated Financial Statements.

NM—Not Meaningful

[ 1 ] CITIGROUP 2002
Dear Fellow Shareholders,
2002 was probably the most difficult year in recent memory for the
financial services industry. In addition to the continuing weakness in
the global capital markets, many of us had to pause and reflect on the
way we conducted business and the steps we needed to take to ensure
that we serve our customers with integrity.
While the issues raised affected our entire industry in the U.S. along with many non-
financial services corporations, it quickly became clear to us that the time had come
for a frank self-appraisal—not of our values, but of how we lived those values.
Industry standards were changing dramatically and we not only had an obligation
to change with them, but a determination to help define the new standards.

We are proud to be able to say that we acted decisively and honestly, without wait-
ing for regulators to order us to change. (See Leadership in business practices,
a chronology of the many steps we took, at the back of this report.) And in
December, we reached a settlement-in-principle with Although income for our corporate and investment
U.S. legal and regulatory agencies on all issues raised banking business declined 30 percent in 2002, we con-
in their inquiries which, when finalized, will bring tinued to outperform our competitors in a very difficult
those inquiries to a close. environment. We maintained our leading positions in
global underwriting categories for straight debt, equity
Today, our company is stronger than we were a year
and debt combined, investment grade debt, and dis-
ago. As we go forward, we will continue to look for
closed fees, while becoming number one in IPOs and
ways to improve our business practices and corporate
convertibles.
governance to ensure that our actions are beyond
reproach. The lessons we learned will not be forgotten. In our global investment management businesses, net
income grew 14 percent in 2002, and we continued
STRONG FINANCIAL RESULTS to lead in U.S. Managed Accounts with $61 billion in
In sharp contrast to the difficulties of 2002 was our assets under management. In addition, the Citigroup
outstanding financial performance. Our challenge was Private Bank, which has been through a remarkable turn-
to manage through a time of extremely rapid change around, has now delivered four consecutive years of
while maintaining our focus on the business. Through record income.
it all, we delivered record results and generated the
kind of growth that will help to sustain our perform- INDUSTRY STANDARDS WERE CHANGING DRAMATICALLY
ance in the future.
AND WE NOT ONLY HAD AN OBLIGATION TO CHANGE WITH
Thanks to the hard work of our 250,000 employees—
THEM, BUT A DETERMINATION TO HELP DEFINE THE NEW
and the unique ability of this company to make deci-
sions and adjust swiftly and resolutely—our company STANDARDS.
generated record earnings of $15.3 billion, despite
increases in our loan loss reserves and a special after- Few companies in our industry would be capable
tax charge of $1.3 billion for the regulatory settlements of registering this kind of performance against the
and related litigation. Our revenues grew six percent backdrop of a troubled world economy and dramatic
while our operating expenses rose only two percent. regulatory change. Citigroup, however, is at a distinct
We are one of the few financial services companies advantage in times like these. The diversity of products
whose earnings in 2002 were higher than in 2001. and geographies at the heart of our business model,
And we enter 2003 in a much better competitive posi- combined with the recurring and predictable revenue
tion than most others in our industry. streams that are a cornerstone of our strategy, enable us
In 2002, despite the slowdown in the global economy, to absorb shocks and even thrive during times of adver-
sluggish capital markets, the crisis in Argentina, the sity. And our Stock Ownership Commitment—the most
war on terrorism, and a series of corporate scandals, stringent of any we know, requiring senior managers to
not only did our businesses generate outstanding retain 75 percent of the Citigroup stock they own or
results, but six of our nine key product lines produced acquire through the exercise of options or vesting of
record income. (See The nine key product lines of stock awards—keeps us focused on the long term.
Citigroup at the back of this report.) No one knows what challenges the years ahead may
Our consumer business increased earnings by 23 per- bring. But the evidence suggests that the promise of
cent and once again strengthened its leadership Citigroup can be delivered through good times and bad.
position in the credit card and consumer finance mar-
kets. The acquisition of Golden State Bancorp
expanded our presence in the thriving U.S. markets of
California and Nevada with its 352 retail branches and
1.5 million new banking customers. The outlook for
the next several years suggests continued steady growth
in the consumer sector.

[ 3 ] CITIGROUP 2002
THE PROMISE OF CITIGROUP tition; and so do our credit ratings—indeed, last year we
In fact, since Citigroup was formed in late 1998, our received another upgrade when Fitch rated our senior
income has grown 120 percent. During this same debt AA+. As a result of the confidence the capital mar-
period, we have consistently produced industry-leading kets have in our stability and capital base, we have seen a
returns on equity. We said we would build a capital reduction in our cost of funding in the public markets.
base sturdy enough to weather different economic
environments; today, we have the largest equity base KEY INITIATIVES IN 2002
in the industry at $93 billion (including trust preferred To strengthen our model further, we implemented a
securities). number of strategic initiatives during 2002:

■ We reorganized the company along global product

From 1999 to 2002, net income for our cards business
nearly doubled to $3.1 billion, while net income in lines with a regional overlay, forming a partnership that
consumer finance grew from $1.2 billion in 1999 blends our deep knowledge of local cultures,
to $2.2 billion in 2002, up 83 percent. customers, and markets with the product expertise,
technology, and scale of our global businesses.

■ We acquired California’s Golden State Bancorp, sig-

WE ARE DELIVERING ON THE PROMISE OF CITIGROUP.
nificantly expanding our branch banking presence in
TODAY, WE HOLD THE LEADING POSITIONS IN THE MOST the western U.S.
PROFITABLE AND HIGHEST-GROWTH BUSINESSES IN ■ We launched a consumer business in Russia, where
there is a growing middle class of some 40 million people.
GLOBAL FINANCIAL SERVICES. WE HAVE THE MOST
■ We completed the integration of Banamex, which
DIVERSE AND INNOVATIVE PRODUCT PLATFORM IN THE
made us the largest corporate and retail bank in Mexico.
INDUSTRY, WITH THE LARGEST DISTRIBUTION CAPACITY. Our operations in Mexico generated more than
$1 billion in earnings in 2002, placing that country
Since 1999, our global retail banking business has alongside Japan as our most profitable outside the U.S.
nearly doubled its net income to $3.2 billion, and our
■ We formed Smith Barney, a new business unit that
network of branches went from 1,400 to more than
further separates research from investment banking.
3,000 today. Net income for our transaction services
This was a significant step forward in restoring the
business grew from $173 million to $521 million, and
credibility of equity research and sharpening our focus
is up 69 percent since 1999 for the Citigroup Private
on our clients.
Bank to $456 million.
■ We announced that Citigroup would begin expensing
We are delivering on the promise of Citigroup. Today,
the cost of stock options for management, employees,
we hold the leading positions in the most profitable and
and members of its Board effective January 1, 2003.
highest-growth businesses in global financial services.
We have the most diverse and innovative product plat- ■ We lowered the expected rate of return on our U.S.
form in the industry, with the largest distribution pension plan from 91⁄2 percent to 8 percent, while
capacity. We are the most global financial services fran- ensuring that the accumulated benefit obligation is
chise in the world, doing business in more than fully funded.
100 countries, and our expense discipline is second to
■ We increased our reserves for credit losses by
none. We are uncompromising when it comes to being
the lowest-cost operator; we manage risk $1.53 billion, including $452 million related to the
conservatively; and we continue to excel in integrating acquisition of Golden State Bancorp.
acquisitions smoothly and efficiently. ■ We spun off Travelers Property Casualty Corp., which

Clients in increasing numbers are choosing to do busi- resulted in a $1.2 billion after-tax gain and enabled us
ness with us because of the strength and convenience to focus our resources more fully on the higher-growth
of our business model. Our financial results confirm areas of global financial services.
our success; so does our performance against the compe-

[ 4 ] CITIGROUP 2002
■ We formed a strategic alliance with Shanghai Pudong A WORD OF THANKS
Development Bank to enter China’s emerging credit card Let me close with a few words to the people who enable
market. us to succeed despite the challenges we face.

These initiatives will help sustain our growth in the Without a doubt, our management team is the most tal-
years ahead, as long as we stay focused on the customer ented group of senior executives I have ever worked with,
and continue to invest in the market-leading franchises and we have now been joined by such extraordinary peo-
that our employees have built. ple as Nick Calio, Stan Fischer, Michael Helfer, Debby
Hopkins, Sallie Krawcheck, and Mike Masin.
OUR COMMITMENT TO THE COMMUNITY
We will also continue to invest in the communities I also want to thank our Board of Directors. They took
where we live and work. One of the core values of our a leadership role in 2002 to help reinforce an absolute
company is to make communities better because we are dedication to integrity within our company. Let me take
there. This philosophy drives our community initiatives this opportunity to express my gratitude to Kenneth
and philanthropy, whether helping people help them- Bialkin, who retired from the Board earlier this year
selves through microfinance, providing capital to after 16 years of outstanding service; Bob Lipp, who
strengthen low-income communities, teaching young left with the spin-off of Travelers Property Casualty
people how to handle their personal finances, or sup- Corp. to lead that terrific company to the next level;
porting educational and cultural activities throughout and Mike Masin, who retired from the Board to take
the world. on the responsibilities of Citigroup Vice Chairman and
Chief Operating Officer. Also, I want to express my
As the most global financial services company, we gratitude to Reuben Mark, who after nine years of dedi-
believe we have a special responsibility to the global cated service and having made many contributions over
community. I am proud to say that Citigroup was reaf- the years, has decided not to stand for re-election in
firmed as a component of the Dow Jones Sustainability order to have additional time to pursue other interests.
World Index for 2003, which recognizes companies Lastly, let me thank Alfredo Harp Helù, who also leaves
ranking in the top 10 percent in terms of superior envi- the Board after helping us build our franchise signifi-
ronmental, social, and economic performance. We were cantly throughout Mexico.
also reaffirmed on the FTSE4Good Index for having met
specific criteria relating to environmental sustainability, Finally, I want to thank the employees of Citigroup,
corporate citizenship, shareholder relations, and sup- who did not waver in their belief in our company and
port of human rights. its mission. I have especially appreciated your support
during the difficult days of 2002. I am proud to be
I believe our positive work in communities around the working with you.
world is one of the reasons why Citigroup was recently
named in a Financial Times survey as the most respected
financial services company in the world, and the one
with the greatest integrity. We will work constantly to
be worthy of those titles by living up to our values.

Sandy Weill

[ 5 ] CITIGROUP 2002
Dear Citigroup Shareholder,
When I joined Citigroup, the potential for an institution of this scope—
geographic and product—seemed enormous. The challenge was to
make it all work. And now, three years later, I think great progress has
been made toward this end.
We have today a greatly increased and uniquely strong presence in the global econ-
omy—which creates many opportunities, but also special issues. And, again, the
challenge going forward is to realize the opportunities, to effectively address the
issues, and to manage effectively to fulfill our potential.

The post-Cold War period has seen greatly increased trade and capital flows, the
growth and inclusion in the global economy of many developing countries, the
spread of market-based economics, and vastly increased use of financial services by
consumers. Citigroup is very well positioned for this environment, but the continu-
ation of these trends is subject to somewhat greater uncertainty. Citigroup, and our
industry, can provide leadership in supporting the full range of policies that will
address the shortcomings of globalization, and so best advance its continuation.
The opportunities that lie ahead will be best realized Great organizations are always works in progress and
by institutions that are strong enough to withstand ours is no exception. Difficult management challenges
difficult economic cycles, maintain growth during lie ahead, but with the strengths of our business model
uncertainty, and deal effectively with continued regula- and the quality of the people of Citigroup, we are very
tory change. Citigroup is such an institution, and I am well positioned to meet those challenges.
more convinced than ever about the positive long-term
In this context, we are focused strongly on our
potential—and prospects—for well-managed compa-
number-one priority: attracting, retaining, and motivat-
nies with the diversified financial services model. And
ing outstanding people. Our depth, reputation, success,
that is good, both for such companies and for the
and long experience in the global markets give us a
economies they serve.
real advantage in recruitment. Our challenge is to pro-
In the end, I believe that Citigroup’s model for financial vide an environment in which every employee can
services will stand the test of time, and that more and better realize his or her potential because of our size,
more institutions will migrate in that direction. At the strength, and breadth, rather than our size being
same time, the diversified Citigroup approach is difficult viewed as burdensome.
to achieve successfully, and that puts us in a strong
I am fortunate to have had the opportunity to work
competitive position in the global economy.
with people throughout the corporation since joining
Having said all this, the risks in a volatile and compli- Citigroup. I have come away enormously impressed
cated world are considerable. I have spent my with the quality of our people and their commitment
life—first on Wall Street and then in government— to our customers. At the same time, we have made
dealing with issues around risk. One of the difficult good progress in developing a culture that is support-
managerial challenges for our industry is to combine an ive and collegial for our employees, where decisions
intense focus on risk with the willingness to take sensi- are made with reasonable speed, where authority and
ble risks by weighing them against the rewards. responsibility are clear, and where hard work and
Companies that fail to effectively focus on risk will positive results are rewarded. But there is always
eventually disappear. And companies that aren’t willing more to do in all of these areas.
to take appropriate risk won’t have a robust business.
My three years at Citigroup have confirmed not only
I believe that Citigroup is coping well with this
my decision to join this remarkable institution, but also
challenge, but it is ongoing.
the view that enormous opportunities lie ahead. No
matter what economic and geopolitical conditions may
be in the coming years, our model and our talented
people equip us exceedingly well to continue realizing
the promise of Citigroup.

Robert E. Rubin

[ 7 ] CITIGROUP 2002
Global Consumer Group
The Global Consumer Group (GCG) is the financial services industry’s most powerful consumer product
engine. Indeed, if it were a separate company, the GCG would be a Fortune 10 corporation and one
of the world’s most profitable institutions.

In a year of economic uncertainty, rife This growth was made possible by

with challenges around the world, the focusing on our unique strengths:
GCG and its three core businesses— being the low-cost provider, having
retail banking, consumer finance, and acquisition/integration expertise, man-
cards—flourished by staying the aging operations and businesses to
course. Each increased net income by scale, maintaining credit discipline,
at least 15 percent, again generating developing and providing quality
record results. Overall, the group reg- products and services, and managing
istered 23 percent growth in income across diverse geographies and busi-
and, over the past four years, nesses. Our basic business strategy
23 percent compound growth. flows directly from this clear focus.
And because we use our valuable
resources carefully, we have the capital
to take advantage of opportunities.
CONTINUOUS GROWTH In addition to growth, another key to our success is bal-
Continuous growth is at the heart of our business ance—the balance we maintain among different types of
strategy. With the acquisition of Golden State Bancorp consumer financial services, among market segments,
(GSB) and its 352 retail branches, we broadened our among geographies, and between innovative and tried-
presence in the U.S., brought $25 billion in deposits, and-true strategies. While we are committed to
and gained 1.5 million new banking customers in innovation, we believe that times of uncertainty are
California and Nevada. At the same time, by integrating best weathered by concentrating on those fundamentals
Golden State’s mortgage business, we added more than that we know bring success.
$20 billion to CitiMortgage’s loan origination capacity
and doubled our servicing portfolio. CUSTOMER-FOCUSED
One of those fundamentals is our commitment to
The swift and successful integration of Banamex trans- enhancing the customer experience. The Global
formed us into the market leader in Mexico in credit Consumer Group puts its customers first. From our
cards and deposits, and strengthened our position in enhancements to the award-winning Citibank® Online
many other business lines. At the time that we banking site in the U.S. to the adoption of more cus-
announced the merger, Banamex and Citibank Mexico tomer-friendly sales practices at CitiFinancial…from the
together had some 11 million customers; remarkably, introduction of the new Citibank® AAdvantage Debit
we gained more than one million new customers while Card in the U.S. to the development of the top Internet-
the integration was underway, bringing our total num- banking site in Japan…and from the development of
ber of clients in Mexico to 12.5 million. the “My Accounts” account aggregation service in the
U.K. to the introduction of the first translucent credit
Another example of our success in integrating new
card—the Citibank Clearsm Card—to young profession-
acquisitions is the Citibank Commercial Markets Group.
als across Asia, we asked customers what they wanted
Citibank gained a thriving commercial banking business
and we delivered those products.
with the acquisition of European American Bank (EAB)
in 2001. By combining our existing CitiBusiness unit One thing customers expect from Citigroup is a broad
with the EAB group, and taking the best practices, prod- choice of products. As we continued to make these
ucts, and services of both and improving upon them, we products available, we achieved new milestones in
created a new and robust Commercial Markets Group to cross-marketing. Citibanking North America (CBNA),
serve small- and middle-market businesses with a range for example, continued to offer a wide range of
of products and services catering to their needs, includ- Salomon Smith Barney (SSB) mutual funds. Market
ing cash management products and CitiBusiness Online. share grew from just 28 percent of CBNA mutual
fund sales in 2000 to nearly 50 percent in 2002.
Of course, we will continue to grow organically by
attracting new customers and deepening relationships As a result, we have deepened relationships with our
with existing customers. We will also add new branches, customers across our consumer businesses, while out-
as we did in Harlem (New York) and Moscow, our first pacing the industry in average number of products per
venture into the Russian consumer market. But whether household. At CBNA, this was driven largely by the
achieved on our own or by acquisition, our growing successful presentation of some 180,000 Citipro®
global footprint makes us more accessible. Today, our Financial Needs analyses to customers across the U.S.—
customers can reach us through 3,100 branches and up 50 percent from 2001, its launch year. At Primerica,
9,800 ATMs worldwide. We are also available to them SSB mutual funds represented 73 percent of funds sold
through Citiphone® Banking or via the web, 24 hours by Primerica representatives. Our CitiMortgage, home
a day, seven days a week. Combine this visibility and equity, and student loan businesses together posted
accessibility with our active dialogue with consumer $129 million in cross-marketing revenue, a 97 percent
groups, elected officials, regulators, and advocates, and increase over 2001. In Western Europe, cross-marketing
the result is a customer-focused and community-minded represented nearly 20 percent of aggregate consumer
franchise with industry-leading business practices. revenues and 10 percent of total GCG revenues.

[ 9 ] CITIGROUP 2002 GLOBAL CONSUMER GROUP

ECONOMICS AND DEMOGRAPHICS
If there is a silver lining to the sluggish global economy, it may be the
response of central banks. In the U.S., for example, record low mortgage
rates spurred another wave of refinancing, which contributed to all-time
high volume for our mortgage and home equity loan businesses. In addi-
tion, the efficiency and service level of our student loan business was
boosted by the growing popularity of nearly paperless transactions—an
innovation embraced by schools and students alike.

We also began to broaden our reach to the growing market of Hispanic

customers in the U.S. Our Banamex business in Mexico and Golden State
in California and Nevada enhanced our ability to serve this important
community, which recently became the largest U.S. minority group.
The introduction of the Citibank Money Card and the ability to open an
account with a Mexican Consular ID were important steps in developing
Citibank as the financial services provider of choice for the Hispanic
population throughout the U.S.

To better serve our Spanish-speaking customers, we created a Spanish lan-

guage student loan site, provided applications for many of our financial
products in Spanish, and offered ATM services in Spanish, among other
languages. Our International Personal Banking (IPB) businesses continued
to forge cross-border alliances, linking offshore banking customers to our
global IPB network.

TRANSFERRING SUCCESS
The ability to “export” proven products, services, and programs to new
markets is a core measure of our success. In Germany, for example, our con-
sumer business has evolved from primarily offering loans to full-service retail
banking, and the card business there introduced the Vodafone MasterCard,
leveraging a successful existing relationship with Citibank in Greece. In
Japan, we are building on the success of our operations, even in the face of a
challenging economic environment. Our consumer business there is recog-
nized as the premier provider of retail banking and credit card services. Its
diverse offerings—local and foreign currency deposits, investment products,
and credit cards—provide unique solutions to individual needs.

We migrated Citiphone® call capability from the U.K., France, and Belgium
to our European call center in Barcelona and launched new CitiFinancial
businesses in Poland and Denmark. Primerica is also expanding interna-
tionally, particularly in Spain and the U.K., by adapting its proven business
model to local markets.

[ 10 ] CITIGROUP 2002 GLOBAL CONSUMER GROUP

CREDIT CARDS
In a highly competitive market, Citi Cards in North America is the industry
leader with more than 120 million cards and we are continually developing
new products and services. In 2002, the business continued to diversify its
profit streams and strengthen its service sales culture, which resulted in
record customer satisfaction scores.

The anticipated launch of The Home Depot and Shell credit cards in 2003
will contribute further growth, while the success of the industry-leading
Citi® AAdvantage, Citi® Platinum Select®, and AT&T Universal cards contin-
ues to provide a solid foundation for the business. At the same time, Diners
Club Rewards was voted the best card reward program, further establishing
Citi Cards as the industry leader in quality, service, and management control.

EMBEDDED IN THE COMMUNITY

One of our goals at Citigroup is to make communities better wherever we
operate. In countless communities around the world, the Global Consumer
Group serves as a catalyst, providing capital for community groups and
non-governmental organizations to help people achieve their aims, and
offering families access to financial services, many for the first time.

We help families fulfill their dreams of owning a home, putting their chil-
dren through college, and preparing for a comfortable retirement. We also
provide the capital that enables entrepreneurs to start businesses and com-
munities to grow and prosper. We offer our customers the best service,
products, innovation, and information in the industry, while consistently
delivering strong results for our shareholders.

We have our 130,000 Global Consumer Group employees to thank for this
record of success, which is a reflection of their talent and commitment to
our customers and shareholders. We stand ready to make 2003 another
record-setting year by continuing to focus on the needs of our customers.

[ 11 ] CITIGROUP 2002 GLOBAL CONSUMER GROUP

Global Corporate & Investment Bank
Citigroup’s continued leadership across an unmatched range of products and geographies underscores
the strength of our business model. Indeed, our Global Corporate & Investment Bank (GCIB) has come to
define that model.

From global underwriting of debt and corporate governance and business while maintaining an unwavering focus
equities to municipal finance, and practices, including the independence on clients and investors. (See Leadership
from transaction banking to advisory of equity research and the use of in business practices at the back of this
services, Citigroup has clearly estab- structured finance products. By year- report.)
lished itself as the leading financial end, the regulatory issues were largely
Through it all, our consistently strong
services institution for corporations, resolved with significant reforms in
earnings and balance sheet helped us
governments, and institutional practices throughout the financial
retain the industry’s highest credit rat-
investors around the world. services industry.
ing. We did not lose sight of the
A YEAR OF CHALLENGES Citigroup took a leadership role, fundamentals that enable the GCIB to
2002 was a difficult year, in terms of quickly adopting and implementing continually outperform the competi-
both the economic and regulatory meaningful reforms in business prac- tion in terms of rankings and results.
environments. Controversy raged over tices and establishing new standards
CAPITAL MARKETS & BANKING As the markets have evolved, we have strengthened
Nor did we lose sight of the real purpose of all that and refined the way we approach our business. In
we do. Through product innovation, our bankers give 2002, we established the fixed-income capital markets
clients the tools to ride out even the most challenging unit, combining debt capital markets product and cov-
economic cycles. And by providing financing and help- erage groups with derivatives to provide clients with
ing raise capital, as well as refinancing and restructuring the most comprehensive and appropriate solutions.
debt, we enable infrastructures to be built, jobs to be We also formed the global rates and currencies group,
created and retained, and businesses to flourish through- which integrated our currency, interest rate, and fixed-
out the world. income derivatives businesses for the convenience of
our clients.
We continue to be a market leader in all areas of
investment banking—fixed income, equities, and advi- Technology continued to play an important role in
sory services. Our award-winning transactions and improving and expanding client offerings in fixed
leading market share attest to the success of the income. By launching new foreign-exchange products
new model we have created for financial services. such as the CitiFX White Label platform and the
FXCross venture between Citigroup and Instinet, we
FIXED INCOME continued to combine Citigroup’s legendary foreign-
Nowhere was the strength of the integrated model more exchange expertise with the best in cutting-edge
evident than in our global fixed-income business, where technology. And major enhancements were made to
product expertise in credit, interest rate, currency, and Citigroup Direct (formerly SSB Direct), our flagship
risk management solutions meld with top-notch origina- online offering for fixed-income institutional customers.
tion, structuring, trading, distribution, research, and
analysis. With our leadership in lending and our strong In addition, for the fourth consecutive year, we ranked
global relationships with issuers and investors, the range number one overall in the Institutional Investor annual
of possibilities we present to our clients and customers fixed-income trading poll of the 300 largest money
continues to expand. management firms in the U.S. And International
Financing Review named Citigroup the Best Global Bond
We offer complete strategic solutions unencumbered House for the second consecutive year, quoting a com-
by product limitation—a unique capability that is built petitor who said: “Citi is the firm that many wish to
into the way we approach business every day around the emulate. The conversations they have fall into place,
world. Along with our steadfast commitment to provide more so than most of their competitors…their capital
liquidity in the primary and secondary markets, this markets people get it right.”
strategic expertise helped increase our global market
share across a wide range of fixed-income products in EQUITIES
turbulent markets. Citigroup also emerged as the partner of choice for
companies looking to access the equity markets, even
Our product range and geographic reach have resonated
amid the global slowdown in those markets. We
deeply with our clients. One large financial institution
remain one of the top traders in secondary markets
tapped a range of fixed-income markets this year—sen-
around the world, offering seamless execution for our
ior, subordinated, middle-market, and retail in a variety
clients, regardless of the size or location of the trade.
of sizes—while a leading global technology firm broad-
ened its investor base by using the euro, yen, and dollar Companies turn to us with a wide variety of financing
markets. Other issuers and investors opted for local needs, which we meet with an even wider array of
markets, where we continued to build a strong presence equity financing solutions. In 2002, we had the distinc-
to lead international bond financings for nearly every tion of completing the largest number and volume of
emerging markets benchmark, despite the challenging deals, as well as generating the best average after-mar-
conditions. We also were the top choice of governments ket performance with the offerings we led. Citigroup’s
and municipalities in the U.S., for whom we once again achievements included completing the year’s largest
raised more capital than any other firm. equity capital raising with the simultaneous IPO and
equity-linked offerings for Travelers.

[ 13 ] CITIGROUP 2002 GLOBAL CORPORATE & INVESTMENT BANK

Global Equities Online (GEO)—our institutional equity portal—continued to
grow in 2002, providing equity research and interactive tools to more than
48,000 users. GEO also converted its paper mailings to e-mail, cutting costs and
speeding service.

Our global market share in IPOs, common stock, and equity-linked deals con-
tinued to grow. In fact, we were the only firm among the top five to increase
market share in global equity underwriting last year. Our Japanese joint ven-
ture, Nikko Citigroup, maintained its position as Japan’s top equity and
equity-linked underwriter for the fourth consecutive year. International
Financing Review recognized these accomplishments by naming Citigroup the
U.S. Equity House of the Year, Global Equity-Linked House of the Year, and
Asia Pacific Equity-Linked House of the Year.

In 2002, we raised $40.5 billion of capital in public and private markets for
80 projects in 34 countries and provided advisory services to another 34 proj-
ects in 19 countries with a financing value of some $49 billion.

ADVISORY SERVICES
The dramatic strides made in global announced mergers and acquisitions, where
we climbed from the number six advisor to number two, reflect the growing
breadth of Citigroup’s advisory business. Even as the overall volume of announced
mergers fell again in 2002, our market share continued to rise. Our unmatched
presence around the world helped lead to this dramatic gain, especially in Europe,
where we advised on three of the five largest deals and undertook a focused effort
to become the primary advisor for our clients.

We have earned a central position in strategic conversations with clients, on

topics ranging from traditional advice on mergers and selling non-core assets
to corporate governance and restructuring balance sheets. We are increasingly
assuming the role of trusted advisor to companies of all sizes in all industry
groups around the world, and we are well positioned to continue building on
this momentum.

Among this year’s noteworthy M&A transactions, we advised Northrop Grumman

on its takeover of TRW, and IBM on its acquisition of PricewaterhouseCoopers
LLC’s consulting division. We also helped create the first dual-listed transatlantic
company in the Princess/Carnival merger. All three of these transactions were
named Deals of the Year by Investment Dealers Digest; they showcased our
bankers’ talents for thoughtful and long-term strategic thinking in behalf of
our clients during particularly difficult market conditions.

CITICAPITAL
In 2002, CitiCapital, the commercial finance arm of Citigroup, continued to
integrate earlier acquisitions, strengthen its operations, and focus on core lines of
business. With approximately $30 billion in managed receivables, CitiCapital is

[ 14 ] CITIGROUP 2002 GLOBAL CORPORATE & INVESTMENT BANK

one of the top three equipment finance/leasing companies in the U.S., serving
the transportation, industrial equipment, business technology, healthcare, energy,
and franchise finance sectors, among others. It is also a leading provider of mas-
ter-leasing programs to large corporations.

While profitability improved in 2002, this business was affected by credit con-
ditions across several sectors, along with the costs of integrating and enhancing
diverse legacy systems and operations. In 2003, our aim is to improve opera-
tional controls and thus increase profitability and returns.

GLOBAL TRANSACTION SERVICES

Citigroup created Global Transaction Services (GTS) in 2002 to integrate our
award-winning transaction services businesses: Cash, Trade and Treasury
Services and Global Securities Services. GTS saw a significant increase in net
income, client base, and market share and, through its realignment, is better
equipped to deliver cash management, treasury, trade finance, custody, clearing,
depository receipt, and agency and trust services to financial institutions and
corporations worldwide.

With global reach and local presence, GTS serves clients who have assets and
businesses in multiple countries and regions, and require integrated reporting
and management. Our Internet-based cash management, electronic bill
payment and presentment, reporting and analytics, securities processing, and
other capabilities enable clients to re-engineer processes, manage working capi-
tal more effectively, and improve straight-through processing.

Our use of technology to increase efficiency has led to tangible results for those
we serve. For example, CitiDirect® Online Banking, our web-based corporate
banking platform, which is available in 20 languages, increases efficiency and
improves the ability of corporate treasurers to make critical cash management
decisions. CitiDirect is the result of several years spent linking the back office
systems of 90 countries, and it enables us to retire outdated and less powerful
systems and move training and client care online.

The leading indicators of this business overall are liability balances and assets
under custody. With a consistent increase in market share, we now have more
than $85 billion in liability balances and our assets under custody have contin-
ued to grow, topping $5 trillion. Our global clearing and custody platform is
one of the most acclaimed in the industry. We also achieved industry-leading
results in virtually all the major external client satisfaction surveys and won
dozens of the industry’s top honors, including World’s Best Internet Bank and
World’s Best Online Cash Management Bank from Global Finance magazine;
Top-Ranked Global Custodian from Institutional Investor; and Most Popular
Settlement Bank for Equities and Fixed Income from Global Investor.

[ 15 ] CITIGROUP 2002 GLOBAL CORPORATE & INVESTMENT BANK

Global Investment Management
Through one of the most challenging years ever experienced by our industry, Global Investment Management
(GIM) achieved significant earnings growth.

We maintained a leading competitive tained strong credit ratings amid total individual annuity sales and fur-
position in our key businesses, retained extensive insurer downgrades ther penetrated the broker/dealer
strong market share across Citigroup by financial rating agencies. marketplace. Our strong sales volume
channels, and launched a variety of growth and consistent expense man-
Our total life insurance premiums
successful new products globally. Each agement—as demonstrated by our
of $943 million were up 23 percent,
business within GIM increased its vol- industry-low expense ratio—offset
while institutional annuity account
ume and demonstrated effective much of the earnings impact from
balances of $22 billion increased six
expense management discipline. lower investment income and declines
percent. Individual annuity account
in the equity market.
GIM includes three major business balances declined five percent to
lines: Life Insurance & Annuities, the $28 billion due to the falling equity We made significant gains in develop-
Citigroup Private Bank, and Asset markets, partially offset by net deposits. ing Citigroup’s non-U.S. life insurance
Management. and annuities platform, including the
TL&A also continued to develop its
launch of a joint venture with Mitsui
LIFE INSURANCE & ANNUITIES distribution network. In addition to
Sumitomo Insurance in Japan.
In the U.S., Travelers Life & Annuity the unique platform provided by
(TL&A) had record volume growth in Citigroup channels, the company grew
two of three product lines, and main- its non-affiliated sales to 29 percent of
CITIGROUP PRIVATE BANK In the CAM Institutional business, long-term net
The Citigroup Private Bank achieved outstanding results inflows for 2002 were $9.5 billion and assets under
in 2002, despite the challenging market environment. management increased to $162 billion. These results
The business, which provides personalized wealth man- can be attributed to the consistent performance of key
agement services to the world’s most affluent families, investment strategies and the strengthening of our dis-
posted record net income of $456 million, a 24 percent tribution team globally.
increase over 2001. Client business volumes rose three
Citigroup Alternative Investments (CAI) has built a
percent to $164 billion.
comprehensive suite of investments, including hedge
In addition to offering wealthy families a full range of port- funds, real estate, private equity, managed futures, and
folio management and investment advisory services, we credit structures. In 2002, CAI’s assets under manage-
provide access to capital markets, trust services and estate ment grew to $99 billion. This includes $35 billion in
planning, tailored financial structures, investment banking assets under management as a result of managing the
services, lending, and other traditional banking products. portfolio of Travelers Property Casualty Corp., spun-off
in 2002, on a third-party basis.
The Private Bank achieved remarkable results in key
markets in 2002: North America (ex-Mexico) income OTHER ASSET MANAGEMENT BUSINESSES
increased $76 million, or 43 percent; and Japan increased Banamex businesses retained their industry-leading
$27 million, or 84 percent. We expanded our investment positions in Mexico with $16 billion in assets under
offerings, while Umbrella Portfolios, our new strategic management and more than five million affiliates man-
asset allocation program, raised nearly $1 billion in assets aged in the Afore or retirement services business.
under management during its first year.
CitiStreet, a 50/50 joint venture of Citigroup and State
ASSET MANAGEMENT Street Corp., is one of the largest global benefits delivery
Asset Management continued its industry-leading per- firms, serving more than eight million benefit plan par-
formance in 2002, ending the year with $479 billion in ticipants and administering approximately $160 billion
assets under management. The business offers an array in assets in the U.S. It also serves more than 800,000
of investment products and retirement services to meet participants and administers about $2.6 billion in assets
the needs of institutional, high-net-worth, and retail outside the U.S.
clients throughout the world. Asset Management deliv-
ered record net income of $521 million, up 33 percent In 2002, CitiStreet expanded its business across all
compared to 2001. The inclusion of full-year results for markets—corporate, government, and nonprofit
Banamex, continued strength in business volumes, and organizations—and launched CitiStreet Australia.
expense reductions helped offset the impact of global
The Latin America Retirement Services business includes
market weakness.
majority- and minority-owned positions throughout the
Citigroup Asset Management’s (CAM) U.S. Retail & region. The Siembra Company in Argentina was affected
High-Net-Worth business was again an integral contrib- by the economic weakness in that country during 2002,
utor to the company’s success, ending the year with resulting in total assets under management declining to
assets under management of $159 billion in 2002. The $4 billion, a decrease of $2 billion from the prior year.
unit captured $11 billion in net inflows into long-term
investment products, reflecting strong sales and market While the global economic outlook remains uncertain,
shares through affiliated distribution channels. GIM is prepared to meet the challenges ahead by contin-
uing to provide unmatched products tailored to customer
CAM’s third-party distribution effort achieved sales of $5.7 needs while maintaining strict expense discipline.
billion, almost double the level of two years ago, and its
Section 529 college savings programs more than doubled,
with assets under management reaching $1.1 billion.

[ 17 ] CITIGROUP 2002 GLOBAL INVESTMENT MANAGEMENT

Smith Barney
Smith Barney, the newly formed Citigroup unit comprising the firm’s Private Client Group and Global Equity
Research, set a new standard among private wealth management businesses in 2002.

The creation of this unit, wholly inde- In a year marked by global economic
pendent from the firm’s corporate and uncertainty, challenging domestic
investment banking and underwriting markets, and significant industry
businesses, was not only an industry- changes, Smith Barney’s Private Client
leading move but a significant step Group continued to distinguish itself
toward rebuilding investor confidence as a world-class leader in delivering
by assuring the independence of wealth management and financial
research analysis. The formation planning services to high-net-worth
of Smith Barney—led by Sallie private investors, small- to mid-sized
Krawcheck, one of the industry’s businesses, non-profit organizations,
most vocal proponents of high-qual- and family foundations.
ity, independent research—also marks
a renewed commitment to provide
the highest-quality services and
research products available to
institutional and retail clients.
The irrational exuberance of the 1990s has ended, access to Citigroup resources, helped the Private Client
along with the belief that financial security can be Group earn the High-Net-Worth Platform of the Year
achieved without experience or effort but merely with award from Institutional Investor’s Private Asset
the click of a mouse. Today, more and more investors Management publication.
are turning to trained financial advisors for help in
planning their futures. RESEARCH
2002 also brought challenges, success, and a renewed
NEW CLIENTS, BETTER SERVICE focus for Smith Barney’s Global Equity Research group.
As a result, Smith Barney’s 12,690 Financial In a rapidly changing environment, Smith Barney was
Consultants (FCs) developed many new client relation- at the forefront of embracing newly emerging industry
ships while deepening existing ones, helping to bring practices and principles. For example, the firm volun-
in nearly $35 billion in net new assets in 2002. tarily adopted the new SEC Analyst Certification rules
Continued diligent focus on expense management, before their effective date. The rules were designed to
coupled with solid productivity among FCs, again led ensure that the views expressed in analysts’ research
to industry-leading margins of 20 percent for the year. accurately reflect their personal views. In a unilateral
move, Smith Barney also adopted additional interim
At the same time, Smith Barney continued to use tech-
research integrity guidelines intended to further
nology to achieve greater efficiencies throughout the
strengthen the separation of research from the
business and enhance client service. In 2002, the firm
investment bank.
rolled out its online learning platform, offering some
200 course selections. The curriculum—available to Amid these challenges, the Research team received
employees in more than 500 offices across the U.S.— outstanding recognition of its product from
includes everything from a series on organization and institutional investors, many of whom serve as fiduciar-
time management to advanced training programs for ies for individual investors. Smith Barney’s equity
financial planning. research analysts led the Institutional Investor Research
Poll for the second consecutive year, garnering the
SB Access, the firm’s web site for individual investors,
most first-place rankings among research analysts
continued to improve its offering and garner praise. In
industry-wide and earning the designation of All-
addition to providing S&P stock reports that supplement
America Research Team. We also made a strong
the firm’s proprietary research product, the site offers
showing overseas as the highest-ranked U.S. firm in
investors easy access to their accounts and information.
the 2002 Thomson Extel Survey.
Confirming its popularity, daily traffic on the site
Smith Barney Global Equity Research enters the new
reached a peak of 25 million “hits,” and by year-end
year with a continuing focus on leading the industry
the enrollment of online client accounts surpassed
in the adoption of best practices and a commitment
2.4 million. SB Access also received high marks from
to raise the industry bar for both the research product
standard-setters in the online brokerage industry, such
and process.
as Gómez Advisors, which named it the number one
Full-Service Brokerage Site of 2002. In a year of tremendous change, Smith Barney FCs and
research analysts remained focused on clients and
The business won top honors in other areas. Reflecting
investors. With a new and independent structure, indus-
its commitment to serving high-net-worth investors,
try issues largely resolved, new policies and practices
Smith Barney continued to promote an “open architec-
firmly in place, and a management team intent on client
ture,” which enables our FCs to choose among
satisfaction, Smith Barney is poised to continue to lead
best-in-class products from a spectrum of financial
the industry.
services firms to meet client needs. This commitment
to private wealth management, coupled with our FCs’

[ 19 ] CITIGROUP 2002 SMITH BARNEY

Citigroup International
In June 2002, we announced a new matrix structure that consolidated our operations outside
North America into a new business group—Citigroup International.
In partnership with our global product offers great opportunity for the future. Citigroup’s revenues and earnings out-
groups, Citigroup International offers side North America; they do not add to,
The international markets we serve
a broad range of consumer financial but are already included in, the results of
account for more than 90 percent
services, corporate and investment the four global businesses.)
of the world’s population and almost
banking services, and investment
70 percent of its GDP. Taken together, THE VIEW BY REGION
management to some 50 million cus-
the countries we serve represent the Citigroup is well established through-
tomer accounts in more than 100
single largest earnings growth oppor- out Asia and should continue to
countries throughout Asia Pacific,
tunity for Citigroup over the medium benefit from relative stability and
Europe, Latin America, and the Middle
and long terms. We plan to invest in superior growth in the region. In
East and Africa. Citigroup has a
those markets and products that offer 2002, Asia posted $1.4 billion in
longstanding presence in these
the highest risk-adjusted returns, earnings, up nine percent. Retail
regions—last year marked 100 years
leveraging our local expertise with banking, credit cards, and investment
since our founding in China, Hong
our global capabilities. management exhibited good growth.
Kong, India, Japan, the Philippines,
Singapore, and the U.K. In 2002, Citigroup International had The corporate and investment bank
revenues of $21.5 billion and income continued to gain market share and
In its breadth, reach, reputation, and this—with good trading results and
of $4.3 billion, down $345 million or
financial strength, the international cost efficiencies—more than offset
seven percent. Excluding Argentina, our
franchise of Citigroup is unparalleled. lower interest rates.
earnings last year were up $411 million
We provide Citigroup with a distinct
or nine percent. (The financial results in
strategic and competitive position that
this section provide a geographic view of
Japan remains the world’s second-largest economy, THE VIEW BY BUSINESS
despite a decade of slow growth and deflation that Viewed from a product perspective, our international
brought higher unemployment and a deteriorating operations produced broadly diversified revenues
credit outlook. Citigroup has a major consumer finance across our spectrum of businesses:
business and leadership positions in investment bank-
■ Our Global Consumer Group generated $10.3 billion
ing, retail banking, and private banking. Earnings by
Citigroup Japan during 2002 were $1.1 billion, up four in revenues—$4.5 billion in retail banking, $3.5 billion
percent. There is significant opportunity for us to con- in consumer finance, and $2.3 billion in credit cards.
tinue gaining customers and assisting corporations and These businesses are attractive with high returns on cap-
financial institutions as they restructure their ital and generally predictable credit risks. Because we
operations in Japan. have small market shares in a number of large countries,
a great opportunity exists to grow these businesses.
Although the macroeconomic outlook for Western
Europe remains cautious, we believe that here, too, In 2002, for example, we opened our first consumer
Citigroup has solid opportunities for growth. In 2002, branches in China and Russia, serving the emerging
our earnings in Western Europe were $992 million, up middle class. We formed a strategic alliance with
three percent. These were supplemented by the dramatic Shanghai Pudong Development Bank and will start
improvement in the Global Corporate & Investment issuing credit cards with them in China later this year.
Bank, which had its strongest year ever in market share, We also invested in new credit card products in Brazil,
ranking second in debt underwriting, third in mergers Japan, and India, and launched wealth management
and acquisitions, and fourth in equity underwriting. The initiatives in Germany, Hungary, India, Indonesia,
Global Consumer Group, with a strong presence in Taiwan, and the United Arab Emirates.
Germany, produced exceptional results, up 37 percent. ■ Citigroup’s Global Corporate & Investment Bank

In Central and Eastern Europe, as well as the Middle generated $9.6 billion in revenues—$6.9 billion in
East and Africa (CEEMEA), a number of countries are capital markets and corporate banking, and
positioned for strong growth. Our business in CEEMEA $2.7 billion in global transaction services. International
earned $785 million in 2002, up 28 percent. Citigroup’s activities account for about half the revenues of the
leading corporate banking franchise, reinforced by the Global Corporate & Investment Bank. We hold top-tier
acquisition of Bank Handlowy in Poland in 2001, positions in Asia, Europe, Japan, Latin America, and
increased earnings by 19 percent. Consumer banking the Middle East in debt and equity underwriting, advi-
and cards doubled their earnings. sory services, derivatives, foreign exchange, transaction
services, loans, and sales and trading.
While a recovery of confidence is evident in Brazil,
political and market conditions continue to be volatile ■ Our Global Investment Management business gener-

in a number of other countries in Latin America. ated $1.6 billion in revenues from private banking,
During 2002, Citigroup experienced a loss of asset management, and international insurance. The
$47 million in the region, compared to earnings of Citigroup Private Bank, for example, is growing
$665 million in 2001. Charges in Argentina amounted strongly in the emerging markets and Japan. Our Asset
Management business is largely focused on developed
to $1.1 billion, following an unprecedented combina-
markets and we expect it to grow as our institutional
tion of sovereign debt default, the asymmetric
and retail distribution expands. CitiInsurance, as our
conversion into pesos of bank assets and liabilities, and
insurance business outside the U.S. is known, had an
devaluation. Excluding Argentina, earnings in the
active year, increasing sales through our retail networks
region were up five percent, affirming the strength of and starting new companies in Brazil, Hong Kong,
our franchise. Poland, and Japan. Mitsui Sumitomo CitiInsurance Ltd.
To address these issues, we have strengthened our risk began operations in Japan, offering variable annuities.
management process across Citigroup International, We are well positioned in the growing international
reduced our exposures in the most vulnerable markets, and with sound investment and a prudent
economies, reinforced financial controls, and instituted approach to risk management, we expect to continue
new compliance procedures. We also aligned the market- to deliver attractive returns to shareholders.
ing, product, and operational resources of our global and
regional organizations more closely to better serve our
customers, drive revenue growth, and achieve efficiencies.

[ 21 ] CITIGROUP 2002 CITIGROUP INTERNATIONAL

Global Community
We have been part of the fabric of communities around the world for well over a century and dating back
to 1812 in North America.
With this longevity comes a special Our total philanthropy in 2002 from grant to the Microfinance Information
responsibility to play a role as a cor- the Citigroup Foundation and our eXchange (MIX), which promises
porate citizen in the life of these businesses combined exceeded to become the definitive source for
communities and to make each one $90 million. benchmarking MFI performance.
of them better because we are there.
MICROFINANCE BUSINESSES MAKING A DIFFERENCE
In 2002, we continued our focus on Citigroup has pioneered and funded Successful business and social respon-
financial education, educating the microlending programs for close to sibility go hand in hand. Five years
next generation, and building com- 40 years. We have supported microfi- ago, Citigroup committed to lend and
munities and entrepreneurs. Our goal nance institution (MFI) networks and invest $115 billion over 10 years in
is to strengthen the communities individual MFIs, so they become more LMI communities and to small busi-
where we live and work by providing self-sufficient and expand their client nesses throughout the U.S. In 2002,
access to credit through microfinance; base. Since 1999, the Citigroup we reached $100 billion of that com-
by lending and investing in low- and Foundation has awarded $11 million mitment, putting us well ahead of
moderate-income (LMI) communities; in grants to 145 microfinance partners schedule. We also provided more than
by financing projects that support sus- in some 50 countries. $16 billion in mortgages to LMI
tainability; by offering financial households and communities in 2002
education and career development; While the majority of our grants pro-
and loaned more than $900 million
and by supporting education and cul- vide capital to microentrepreneurs,
to small businesses in LMI neighbor-
tural activities. some of them help advance the entire
hoods. Citibank’s Community
sector. Consistent with our goal to raise
Development Group delivered impres-
standards in the microfinance industry,
sive results, lending and investing
for example, we awarded a $450,000
some $1.1 billion in 2002.
We made an impact on the communities where we live Citigroup Success Fund Programs also provide grants
and work in many other ways: to educators to develop easily replicable, grassroots
programs aimed at helping students. Last year, we sup-
■ Our businesses helped nongovernmental organizations
ported the launch of such a program in Taiwan,
(NGOs) strengthen their operations. For example, Thailand, and Indonesia with $232,500 in grants and
Citibank in South Africa hosted workshops for 128 we made grants totaling $635,000 to existing
NGO representatives on forming effective partnerships programs.
with the private sector.
THE ENVIRONMENT
■ In 2002, our Public Finance group underwrote 163
Citigroup believes that working to conserve and
bond deals in the U.S. that resulted in environmentally
enhance the environment is sound business practice.
beneficial projects worth more than $12 billion—an
We were one of the first U.S.-based financial services
increase of approximately nine percent over 2001.
firms to start an environmental affairs program—we
■ After announcing our proposed acquisition of Golden did so more than 10 years ago. Citigroup was reaffirmed
State Bancorp, we met with California- and Nevada- as a component of the Dow Jones Sustainability World
based groups to learn about their communities’ financial Index for 2003, which recognizes companies in the top
services needs. As a result, we announced an unprece- 10 percent in terms of environmental, social, and eco-
dented 10-year, $120 billion commitment to lend and nomic performance. We also were reaffirmed on the
invest in underserved communities in those two states. FTSE4Good Index for having met specific criteria relat-
ing to environmental sustainability, corporate citizenship,
FINANCIAL EDUCATION shareholder returns, and support of human rights.
In 2002, Citigroup redoubled its efforts to offer indi-
viduals and institutions opportunities to learn more Our environmental initiatives in 2002 included issuing a
about managing their finances. Statement on the Financing of Investments/Projects and
expanding training for our bankers on environmental
The first Academy of Finance (AOF) was opened financing issues. We embarked on a comprehensive proj-
outside the U.S. at London’s Lewisham, Sir George ect to establish a baseline on electricity, heat, water, and
Monoux, and Guildford colleges in 2002. AOF is a waste, and the resultant CO2 emissions in our more than
program of the National Academy Foundation (NAF), 10,000 facilities worldwide. Our membership in the U.S.
which was founded by Citigroup Chairman & CEO Environmental Protection Agency’s Energy Star initiative
Sandy Weill in 1982, in order to help students develop and the E.U.’s GreenLight Programme are also helping us
personal financial skills and prepare for careers in conserve resources to benefit the environment as well as
financial services. We provided $2.3 million in support our shareholders.
to NAF and local academies in 2002.
Our partnership activities included supporting the
In the U.S., Citibank offered 1,200 financial education expansion of the World Resources Institute’s New
seminars and Salomon Smith Barney continued Ventures program to the Asia-Pacific region and team-
to sponsor its Target Market Investor Education ing up with the Alliance for Environmental Innovation
Programs, which offer women, minorities, and young to help reduce the environmental impact of copy paper.
investors greater insight into investing and the markets.
VOLUNTEERISM
One of our global partners in financial education is Since 2002, Citigroup has strengthened its employees’
Junior Achievement (JA). Spanning more than 20 years, extensive volunteer efforts by launching a global web
our partnership brings the world of business to life for site to inform employees about company-sponsored
millions of students. Over the past five years, we have activities and to provide links to volunteer opportuni-
contributed more than $3.7 million to support JA pro- ties and resources. In the U.S., Citigroup held its first
grams on four continents and in more than 38 countries. national day of volunteering, with 1,400 employees
We are committed to supporting education and career participating in 45 projects in 26 states.
development to enable individuals and societies to real- In addition, some 10,000 U.S. employees in 25 states
ize their full potential. In 2002, Citigroup granted more have contributed 112,000 hours to build 97 homes with
than $1.5 million for a variety of programs that increase Habitat for Humanity since 2000. Employees in Kenya,
access to higher education for minorities and women. Paraguay, Peru, the Philippines, South Africa, South
Grantees included INROADS, the American Indian Korea, Uganda, the U.K., and Venezuela, among other
College Fund, the Hispanic Scholarship Fund, and the countries, have also been involved in Habitat builds.
United Negro College Fund.

[ 23 ] CITIGROUP 2002 GLOBAL COMMUNITY

Recognition
In 2002, Citigroup was again recognized by independent organizations, the media, and investors as
the best in the industry. Following is a sampling of this recognition:

ASIAMONEY EXAME MAGAZINE HISPANIC MAGAZINE

Best Cash Management Bank in Asia Best Company to Work For Corporate 100 List
Best Global Custodian in Asia Pacific
Equity House of the Year— FINANCE ASIA INSTITUTIONAL INVESTOR
Nikko Citigroup Best Bank in Asia Best All-America Research Team
Best Global Custodian
THE ASSET FINANCIAL TIMES Best in Fixed Income Trading
Best Bank in Asia World’s Most Respected Financial Services
Company for 4th Consecutive Year Best Commercial Banking Web Site
Best Foreign Exchange Bank in Asia
INSTITUTIONAL INVESTOR’S PRIVATE
FORBES ASSET MANAGEMENT
THE BANKER Diners Club—One of the Most Important
Best Online Business Strategy High-Net-Worth Platform of the Year
Business Innovations of Past 85 Years

BONDWEEK INTERNATIONAL FINANCING REVIEW

FORBES.COM Emerging Market Bond House of the Year
Best Overall Mortgage-Backed Securities Desk Best of the Web Financial Services
Global Bond House of the Year
BUSINESS WEEK IN ROMANIA FORTUNE Global Equity-Linked House of the Year
Corporate Citizenship Award America’s Most Admired Companies, #1 for U.S. Equity House of the Year
Bank Industry
Euroyen/Global Yen House of the Year—
CLARÍN 2002 List of 50 Best Companies for Minorities Nikko Citigroup
Most Admired Bank
FX WEEK INTERNATIONAL FINANCING REVIEW ASIA
CORPORATE FINANCE Best FX Bank Bank of the Year
Best Bank for Foreign Exchange
Loan House of the Year
GLOBAL FINANCE Bond House of the Year
EFFIE AWARD World’s Best Bank
Honoring “Live Richly” Ad campaign Asia Pacific Equity-Linked House of the Year
World’s Best Online Cash Management Bank
Best Corporate Finance Provider—Central &
EUROMONEY LATIN FINANCE—DEALS OF THE YEAR
Eastern Europe and the Middle East
Best Bank for Foreign Exchange Sovereign Bond of the Year
Best Global Corporate Finance Provider
Best Global Corporate Bank International Corporate Bond
Best Global Emerging Markets Bank
Best at Risk Management and Treasury for Corporate Liability Management
Central & Eastern Europe Best Global Project Finance Bank
Project Finance Deal
Best at Cash Management for Central World’s Best Corporate/Institutional
Privatization Deal
& Eastern Europe Internet Bank
Best Regional Bank in Africa World’s Best Foreign Exchange Bank
LATINA STYLE
Best at Transaction Services and Cash World’s Best Internet Bank The 50 Best Companies for Latinas to Work
Management in Latin America Best Corporate/Institutional Internet Bank for in the U.S.
World’s Best Bank in Latin America
World’s Best Debt House LATIN TRADE
GLOBAL INVESTOR Best Financial Institution and One of Top Four
World’s Best Emerging Market Debt House Companies to Work for in Latin America
Best Regional Custodian in Latin America
World’s Best Asset-Backed House
World’s Best Project Finance House GÓMEZ ADVISORS NEW YORK NEWSDAY
World’s Most Improved Equity House Citibank Online Ranked #1 for 5th New York City’s #1 Public Company
Consecutive Period
World’s Best at Cash Management and Payments
Citicards.com Site Ranked #1 for 3rd TREASURY & RISK MANAGEMENT
Best Bank in Asia
Consecutive Period Best International Cash Management Bank
Smith Barney Named # 1 Full Service
Brokerage Web Site WORKING MOTHER
100 Best Companies for Working Mothers

[ 24] CITIGROUP 2002

The nine key product lines of Citigroup
Citigroup focuses on nine distinct product lines operating within four out of our five business groups—Global
Consumer Group, Global Corporate & Investment Bank, Global Investment Management, and Smith Barney. Our fifth
business group, Citigroup International, manages the operations of these same businesses outside of North Anerica
from a geographic, not a product, perspective. For a breakdown of our revenues by geography, see inside back cover.

Below you will find financial results for each of the nine product lines—net income and a key indicator of the health
of that business—along with some highlights. This page is perforated for handy reference.

GLOBAL CARDS
GLOBAL CONSUMER

Net Income ($B) End of Period Managed Receivables ($B) HIGHLIGHTS

$3.1 ■ rolled out Citibank Clear Card across Asia, the
$132
$2.5
$123 market’s first translucent, young professionals-oriented
$2.2
$115 credit card
$1.7
$97 ■ awarded a private-label contract with The Home Depot
to provide credit cards to its customers
■ entered into alliance with Shanghai Pudong
1999 2000 2001 2002 1999 2000 2001 2002 Development Bank to develop card business in China

GLOBAL CONSUMER FINANCE

Net Income ($B) Average Loans ($B) HIGHLIGHTS
$2.2 ■ launched in Poland and Denmark, bringing our presence
$1.9 $77.9
$71.4 to 21 countries; expanded in Japan, Puerto Rico, and India
$1.4 $62.3
$53.7
$1.2
■ provided some one million new loans to individuals in
North America
■ continued to execute Real Estate Lending Initiatives suc-
cessfully in the U.S. and introduced enhancements to
1999 2000 2001 2002 1999 2000 2001 2002 business practices that set new industry standards

GLOBAL RETAIL BANKING

Net Income ($B) Global Retail Banking ($B) HIGHLIGHTS
$3.2 Deposits
■ first international bank to offer retail services to
$2.5
Loans Chinese citizens; opened branches in Russia, Turkey,
$2.0 Mexico, India, and the Czech Republic
$1.7 $170
$147 ■ introduced first unsecured personal loan product in
$117 $123 Slovak and Romanian markets
$75 $82 $97 $113
■ completed approximately 180,000 Citipro financial
1999 2000 2001 2002 1999 2000 2001 2002 needs analyses for U.S. clients

PRIVATE CLIENT GROUP

SMITH BARNEY

Net Income ($B) Total Client Assets ($B) HIGHLIGHTS

$1.1 ■ achieved industry-leading pretax profit margins of
$0.9 $965 $977 $977
$0.8 20 percent
$0.7 $897
■ earned 50 percent of revenues from recurring and
fee-based sources
■ achieved net asset inflows of nearly $35 billion

1999 2000 2001 2002 1999 2000 2001 2002

[ 25] CITIGROUP 2002

 CAPITAL MARKETS & BANKING
GLOBAL CORPORATE & INVESTMENT BANK Net Income ($B) Global Underwriting Debt HIGHLIGHTS
& Equity Market Share
$3.6 $3.9 $3.9 ■ raised more than $414 billion in debt and equity for our
10.9% 12.1% clients globally, topping all competitors as bookrunner
10% 10.6%
$3.3 for 1,300 individual issues
■ expanded European presence as we advised on three
of five largest M&A deals
■ raised $40.5 billion of capital through our project
1999 2000 2001 2002 1999 2000 2001 2002
finance team in public and private markets for
80 projects in 34 countries
GLOBAL TRANSACTION SERVICES
Net Income ($B) Assets Under Custody (End of Period in $Tr) HIGHLIGHTS
$0.5 $0.5 ■ topped $5 trillion in assets under custody, making it one
$0.4 $5.1
$4.8 of the fastest-growing global custodians
$0.2 $4.1
$3.8 ■ expanded CitiDirect® Online Banking for corporations
and financial institutions to 20 languages
■ settled more than $8 billion in international trade
payments related to the movement of goods
1999 2000 2001 2002 1999 2000 2001 2002

LIFE INSURANCE & ANNUITIES

GLOBAL INVESTMENT MANAGEMENT

Net Income ($B) Net Written Premiums and Deposits ($B) HIGHLIGHTS
$0.8 $0.8 $0.8 Group Annuities
■ received 11th straight credit rating agency upgrade
$0.6 Individual Annuities ■ entered into strategic partnership with Pioneer Fund
Distributors to sell proprietary variable annuities
$7.1 $6.3
$5.6 $5.5 ■ opened operations in Hong Kong, Poland, and Brazil;
$5.4 $6.4 $6.2 $5.4 established joint venture with Mitsui Sumitomo
Insurance in Japan, immediately reaping benefits
1999 2000 2001 2002 1999 2000 2001 2002 through strong annuity sales

CITIGROUP PRIVATE BANK

Net Income ($B) Client Business Volumes ($B) HIGHLIGHTS
$0.5 ■ launched Umbrella Portfolios, a strategic asset allocation
$0.4 $164
$0.3 $0.3 $159 program
$153
$140 ■ became largest private bank in Mexico with the integra-
tion of Banamex
■ expanded to new U.S. markets; achieved record levels of
client acquisition and trading in Japan
1999 2000 2001 2002 1999 2000 2001 2002

ASSET MANAGEMENT
Net Income ($B) Assets Under Management ($B) HIGHLIGHTS
■ continued to expand our offerings in the separately
$0.4 $0.5 $479
$440 managed account business and retained ranking as
$0.3 $0.3 $410
$377 number one manager of U.S. separate account assets
■ introduced our first Registered Hedge Fund, along with
new municipal arbitrage and real estate funds
■ launched CitiStreet Australia, CitiStreet’s first venture
1999 2000 2001 2002 1999 2000 2001 2002
outside the U.S.

[ 26] CITIGROUP 2002

Leadership in business practices
In 2002, a number of financial services industry practices came under sharp scrutiny by the U.S.
Congress, regulators, and investors. To reaffirm our commitment to highly ethical conduct, Citigroup
launched a series of rapid reforms that raised standards of business practices for our company and the
financial services industry.

TO ASSURE THE INDEPENDENCE OF OUR RESEARCH ANALYSTS

MAY 21 first firm to voluntarily embrace principles established by New York’s Attorney General: severed link
between compensation for analysts and investment banking revenue and prohibited investment bank-
ing input into analyst evaluation
JUNE 3 adopted substantially all new NASD and New York Stock Exchange rules early; implemented full set
of disclosures required under the rules; established gatekeeping procedures for research review; went
beyond the rules, restricting review of draft research on public companies by analysts
JULY 29 voluntarily adopted SEC’s Regulation AC: analysts must certify that the views expressed in their
research accurately reflect their personal views, and that they have not been compensated, directly
or indirectly, for expressing a specific recommendation
AUGUST 6 established new Research Policy Committee in the U.S.: provides enhanced and ongoing review of
our research product, reviews proposed stock and industry coverage before initiation, and provides
input on analyst performance to senior management
OCTOBER 30 created new Smith Barney business unit to further segregate Equity Research from Investment
Banking (see page 18)

TO AVOID AUDITOR CONFLICTS OF INTEREST

JULY 25 announced new plan to use outside auditors only to execute audit and tax-related work and not per-
form consulting work; called for independent authority to establish and enforce accounting standards

TO ENSURE TRANSPARENCY AND DISCLOSURE OF STRUCTURED FINANCE TRANSACTIONS

AUGUST 7 launched new disclosure policy: Citigroup will execute a material financing transaction only if client
company agrees to publicly disclose to its investors the net effect of the transaction on the financial
condition of the company

TO EXPENSE OPTIONS AND AFFIRM STOCK OWNERSHIP COMMITMENT

AUGUST 7 announced new policy on stock options: Citigroup will account for all stock options for management,
employees, and members of its Board as an expense, effective January 1, 2003
AUGUST 7 affirmed “blood oath”: senior management must hold 75 percent of all Citigroup stock they own at
the time they become subject to the commitment, as well as 75 percent of any stock they acquire
from the company

TO ENHANCE OUR CORPORATE GOVERNANCE PROCESS

AUGUST 7 established Nomination and Governance Committee of the Board of Directors
SEPTEMBER 6 lowered the expected rate of return on our U.S. pension plan from 91⁄2 percent to 8 percent, while
ensuring that the Accumulated Benefit Obligation is fully funded
OCTOBER 1 announced a policy to eliminate interlocking directorates on Citigroup’s Board
Leadership
BOARD OF DIRECTORS John C. Danforth Jorge A. Bermudez*∞† Jorge Bermudez*∞ ■
Partner, Bryan Cave LLP CEO, Latin America CEO, Latin America
C. Michael Armstrong Former U.S. Senator
Chairman, Comcast Corporation Kenneth L. Dowd∞ Frank Bisignano*∞
Valentin Diez Global Investments CAO; CEO, Global
Alain J.P. Belda Vice Chairman Transaction Services
Chairman & CEO, Alcoa Inc. James J. Duffy
CEO, Sales and Marketing,
Grupo Modelo, S.A. de C.V. Senior Human Resources Officer David Bushnell∞
George David Global Risk Management
Chairman & CEO, United Michael R. Dunn∞
Andrea Jung
Technologies Corporation Chairman & CEO CFO Robert DiFazio*∞
Avon Products, Inc. Global Equities
Kenneth T. Derr Steven Freiberg*
Chairman, Retired, ChevronTexaco Ralph S. Larsen
Citi Cards North America John Donnelly
Corporation Former Chairman & CEO Senior Human Resources Officer
Harry Goff
John M. Deutch Johnson & Johnson CitiFinancial Mortgage Company Joan Guggenheimer
Institute Professor, Massachusetts Göran Lindahl
General Counsel
Roy A. Guthrie*∞
Institute of Technology Former President & CEO Consumer Finance International Arthur Hyde*∞
Alfredo Harp Helú ABB Ltd. Product Management Global Equities
Chairman of the Board, Sir Deryck C. Maughan*∞■† Jean-Marie Horovitz Michael Klein*∞
Grupo Financiero Banamex Vice Chairman, Citigroup; Chairman Commercial Markets Group Investment Banking; CEO, Europe
Roberto Hernández Ramirez & CEO, Citigroup International
Kevin Kessinger* Toshiharu Kojima*∞
Chairman of the Board, Charles Prince*∞† Consumer Finance North America CEO, Chairman of the Executive
Banco Nacional de México Chairman & CEO Committee, Nikko Citigroup
Global Corporate & Investment Bank Michael S. Knapp
Ann Dibble Jordan CitiFinancial North America Stephen H. Long*∞
Consultant William R. Rhodes*+∞ CEO, Asia Pacific
Senior Vice Chairman; Chairman, Carl E. Levinson
Reuben Mark Consumer Assets Alan MacDonald*∞
Chairman & CEO, Colgate-Palmolive Citicorp/Citibank, N.A.
Global Relationship Bank
Company Robert E. Rubin*∞ Anne MacDonald
Chairman, Executive Committee, Global Marketing Tom Maheras*∞
Dudley C. Mecum Global Fixed Income
Managing Director, Capricorn Citigroup Inc.; Member, Office of the Maura Markus
Holdings, LLC Chairman, Citigroup Inc. Citibanking North America Hans Morris∞
Dr. Eisuke Sakakibara CFO
Richard D. Parsons Manuel Medina-Mora*∞
CEO, AOL Time Warner, Inc. Professor of Keio University Banamex Robert Morse*∞
Former Vice Minister of Finance Investment Banking
Andrall E. Pearson for International Affairs, Japan Stephanie B. Mudick
Founding Chairman, Yum!Brands, Inc. CAO
Prof. Dr. Ekkehard Schulz GLOBAL INVESTMENT
Robert E. Rubin*∞ Chairman of the Executive Board Raymond J. Quinlan*∞
International Cards Product MANAGEMENT PLANNING GROUP
Chairman, Executive Committee, ThyssenKrupp AG
Citigroup Inc.; Member, Office of the Management Thomas W. Jones*∞
Chairman, Citigroup Inc. Morris Tabaksblat
Chairman George C. Ross ∞ Chairman & CEO
Franklin A. Thomas Reed Elsevier Risk Management Stephen Cone
Consultant, TFF Study Group Frederik (Frits) F. Seegers*∞ Marketing & Public Relations
Sanford I. Weill*
Sanford I. Weill* Chairman & CEO CEO, Asia Pacific Glenn Lammey
Chairman & CEO, Citigroup Inc. Citigroup Inc. Jean-Paul Votron*∞ CFO
Arthur Zankel Lorenzo H. Zambrano CEO, EMEA Evan Merberg∞
Senior Managing Member, High Rise Chairman & CEO D. Richard Williams CAO
Capital Management, L.P. Cemex, S.A. de C.V. Primerica Financial Services Michael Rosenbaum
HONORARY DIRECTOR Alfred M. Zeien Simon Williams*∞ General Counsel
The Honorable Gerald R. Ford Former Chairman & CEO International Retail Banking Product
Former President of the United States The Gillette Company Robert Shepler
Management Corporate Development
Martin Wong & Retirement Services
CITIGROUP INTERNATIONAL GLOBAL CONSUMER General Counsel
ADVISORY BOARD PLANNING GROUP CITIGROUP ASSET MANAGEMENT
David W. Young
Umberto Agnelli Robert B. Willumstad*+∞ Treasury Thomas W. Jones*∞
Vice Chairman and CEO Chairman & CEO Chairman & CEO
IFI–Istituto Finanziario Industriale Peter Cieszko
S.p.A. Marjorie Magner*+∞ GLOBAL CORPORATE & INVEST-
COO MENT BANK PLANNING GROUP Head, US Retail & High Net Worth
Sir Peter Bonfield Virgil Cumming
Senior Non-Executive Director John A. Addison, Jr. Charles Prince*∞
Primerica Financial Services CIO, US Retail & High Net
AstraZeneca PLC Chairman & CEO Worth & Affiliates
Former Chief Executive Deborah Adelman Robert Druskin*∞
British Telecommunications plc Commercial Real Estate Group President & COO
John L. Clendenin Ajay Banga* Ellen Alemany*
Former Chairman & CEO Consumer Assets and North America President & CEO, CitiCapital
BellSouth Corporation Retail Banking

* Member of Citigroup Management Committee † Member of Global Corporate & Investment Bank Planning Group ∞ Member of Citigroup International Planning Group
■
Member of Global Consumer Planning Group + Member of Citicorp/Citibank, N.A. Board of Directors ▲ Member of Global Investment Management Planning Group
Michael Even CITIGROUP GLOBAL Michael Klein*† CITIGROUP SENIOR
CIO, Private Bank INVESTMENTS CEO, Global Corporate & CORPORATE OFFICERS
& Quantitative Research Investment Bank, Europe
Michael A. Carpenter* Sir Winfried F.W. Bischoff*∞
Stephen Hopkins Chairman & CEO Christopher Preston▲ Chairman, Citigroup Europe
COO, Private Bank Asset Market Region Head,
Management William Comfort Citigroup Private Bank, Europe Nicholas Calio*
Citigroup Venture Capital SVP, Global Government Affairs
Rama Krishna*∞ Jean-Paul Votron*■
CIO & Head, Institutional Ahmed Fahour∞ CEO, Global Consumer Group, Robert Druskin*∞†
& International CEO, Citigroup Alternative EMEA Chief Operations &
Investments Technology Officer
David Tyson Terry Williams
CIO, Insurance Business Head, CitiFinancial Stanley Fischer*∞■ †
SMITH BARNEY International, Europe Vice Chairman
Peter Wilby
PLANNING GROUP Pamela P. Flaherty
CIO, North American Fixed Income, JAPAN
High Yield & Emerging Markets Sallie Krawcheck* SVP, Global Community Relations
Chairman & CEO James S. Johnson James M. Garnett, Jr.
PRIVATE BANK Head, CitiFinancial International Risk Management
Jeffrey I. Hack
Peter K. Scaturro*∞ CFO; COO, Private Client Group Koichiro Kitade▲ William Hannon*
CEO Market Region Head, Controller & Chief Accounting
William R. Kennedy Citigroup Private Bank
Michael Even Director, Global Equity Research Officer; Managing Director,
CIO Toshiharu Kojima*† Citigroup Business Services
Robin Leopold CEO, Chairman of the
Koichiro Kitade ∞ Senior Human Resources Officer Michael S. Helfer*
Executive Committee, General Counsel & Corporate
Market Region Head, Japan Nikko Citigroup
W. Thomas Matthews* Secretary
Damian Kozlowski President & CEO, Private Joyce A. Phillips Deborah Hopkins*
Market Region Head, US Client Group Country Business Manager, Corporate Strategy
Christopher Preston ∞ Paul Underwood Citibank Consumer Business
Market Region Head, Europe Vice Chairman Michael T. Masin*
Charles K. Whitehead Vice Chairman & COO
Frances Sevilla-Sacasa∞ Citigroup Country Officer
Market Region Head, Latin America CITIGROUP INTERNATIONAL Sir Deryck C. Maughan*∞■ †
LATIN AMERICA Vice Chairman
Deepak Sharma∞ PLANNING GROUP
Market Region Head, ■
Jorge A. Bermudez*■ † Victor Menezes*
Asia Pacific & Middle East Sir Deryck C. Maughan* †
CEO Senior Vice Chairman
Chairman & CEO
Gustavo C. Marin Michael Neborak
GLOBAL LIFE INSURANCE Stanley Fischer* ■ † Group Head, Strategy
Citigroup Country Officer, Brazil
& ANNUITIES President & Business Development
Luis Matute
George Kokulis*∞ Katherine McG. Sullivan Corporate Products and Client Nancy S. Newcomb
Chairman & CEO EVP Segments Head Corporate Risk
TRAVELERS LIFE & ANNUITY ASIA PACIFIC Frances Sevilla-Sacasa▲ Douglas L. Peterson*
George Kokulis*∞
Market Region Head, Chief Auditor
Stephen H. Long*† Citigroup Private Bank
Chairman, President & CEO CEO, Global Corporate & Sheri Ptashek*
Ed Cassidy Investment Bank, Asia Pacific GLOBAL PRODUCT HEADS Investor Relations
Life Sales and Tower Square Frederik (Frits) F. Seegers*■ James A. Forese* William R. Rhodes*+∞
Securities, Inc. CEO, Global Consumer Group, Global Head, Emerging Markets Senior Vice Chairman; Chairman,
Glenn Lammey Asia Pacific Local Finance Citicorp/Citibank, N.A.
CFO Deepak Sharma▲ A. Richard Janiak Saul Rosen
Brendan Lynch Market Region Head, Citigroup Managing Director, Head, Chief Tax Officer
Group Annuity Private Bank, Asia Pacific & Smith Barney International H. Onno Ruding+
Middle East Private Client Group Vice Chairman, Citicorp/Citibank
Laura Pantaleo
Retail Annuities Sales EUROPE, MIDDLE EAST Yih Sy (Y.S.) Wong*† Petros K. Sabatacakis*+
& AFRICA Global Head, Emerging Markets Senior Risk Officer
Kathleen Preston Sales & Trading
Retail Life and Annuities Shirish Apte Michael Schlein*
David Tyson CEO, Global Corporate & INTERNATIONAL FUNCTIONS SVP, Global Corporate Affairs
CIO Investment Bank, Central & Eastern & Human Resources
Europe, Middle East & Africa George H. Blauvelt
Chief Risk Officer Todd S. Thomson*
INTERNATIONAL INSURANCE Atif Aslam Bajwa EVP, Finance; CFO
MANUFACTURING Cluster Head, Poland, Hungary, Alan D. Jones
Senior Human Resources Officer Guy Whittaker
Michael Froman∞ Czech Republic, Slovakia, and Treasurer
President & CEO Romania Michael A. Ross
General Counsel Robert B. Willumstad*+∞■
Sujit Banerji President; President & CEO,
Head, Strategy and Mergers & Zion Shohet Citicorp/Citibank, N.A.
Acquisitions, Global Consumer Head, Strategy
Group
Edward G. Watson
Sir Winfried F.W. Bischoff* CFO
Chairman, Citigroup Europe

* Member of Citigroup Management Committee † Member of Global Corporate & Investment Bank Planning Group ∞ Member of Citigroup International Planning Group
■
Member of Global Consumer Planning Group + Member of Citicorp/Citibank, N.A. Board of Directors ▲ Member of Global Investment Management Planning Group
This photo was taken at the historic gathering of Citigroup Country Officers in New York in January 2003.
CITIGROUP COUNTRY OFFICERS
Algeria Canada Egypt Indonesia Mexico Portugal Thailand
Kamal B. Driss Martin Johannsson Michel Accad Michael G. Zink Manuel Antonio Cacorino Terence (Tab)
Medina-Mora Cuddyre
Angola Cayman Islands El Salvador Ireland Puerto Rico
Cristina Duarte M. Carmen Butler Gijs (Bert) Veltman Aidan M. Brady Monaco Alvaro Jaramillo Trinidad & Tobago
To be announced Steve M. Bideshi
Argentina Channel Islands Finland Israel Romania
Juan Bruchou (Jersey) Jan Stjernstrom Augusto (Gus) Felix Morocco To be announced Tunisia
Clive S. Jones Nuhad K. Saliba Michael Grossman
Aruba France Italy Russia
Philip Henriquez Chile Jean Claude Gruffat Luca Toniutti Netherlands Allan J. Hirst Turkey
Ariel D. Sevi Christopher I. Mark Robinson
Australia Gabon Jamaica Saudi Arabia
Devries
Shayne Elliott China, Peoples Funmi Ade-Ajayi Peter H. Moses Mike de Graffenried Uganda
Republic of New Zealand Nadeem Lodhi
Austria Germany Japan Senegal
Richard Stanley Andrew Au
Dr. Helmut Gottlieb Christine Licci Charles K. Gabriel Lopes Ukraine
Colombia Whitehead Nigeria Witold Zielinski
Bahamas Ghana Singapore
Steven Puig To be announced
M. Carmen Butler To be announced Jordan Sunil Sreenivasan United Arab
Congo, Democratic Suhair Al-Ali Norway Emirates
Bahrain Greece Slovakia
Republic Mai Ibsen Shehzad Naqvi
Mohammed E. Michel Losembe Christos Sorotos Kazakhstan Tirad Mahmoud
Al-Shroogi Reza Ghaffari Oman United Kingdom
Guam South Africa,
Costa Rica Zulfiquar A.Sulaiman Michael Kirkwood
Bangladesh
Victor Manuel Vic Lim Kenya Republic of
Mamun Ur Rashid Balcazar Srinivasan Sridhar Pakistan Sebastian Paredes Uruguay
Guatemala
Zubyr Soomro Constantino Gotsis
Belgium
Côte d’Ivoire
Juan A. Miro Korea (South) Spain
Peter Verhoeven Asif Zaidi Sajjad Razvi Panama Sergio de Horna Venezuela
Haiti
Francisco J. Conto Philip Henriquez
Bolivia
Czech Republic
Gladys M. Coupet Lebanon Sri Lanka
Agustin Davalos Atif Bajwa Elia S. Samaha Paraguay Kapila Jayawardena Vietnam
Honduras
Henry Comber John M. Beeman
Brazil
Denmark
Maximo Vidal Luxembourg Sweden
Gustavo Marin Elias Panayotopoulos Marc E. Pecquet Peru Jan Belfrage Virgin Islands
Hong Kong
Franco Moccia (U.S.)
Brunei
Dominican
T.C. Chan Macau Switzerland
Alvaro Jaramillo
Glen R. Rase Republic
T.C. Chan Philippines Per Etholm
Hungary
Ignacio Jasminoy Catherine M. Weir Zambia
Bulgaria Zdenek Turek Malaysia Taiwan
Rajaram
Plamen Iltchev Ecuador
Piyush Gupta Poland Eric Chen Venkatraman
India
Francisco Aristeguieta Shirish Apte
Cameroon Sanjay Nayar Tanzania,Republic of
Emeka Emuwa Mayank Malik

Note: Countries and territories where Citigroup operates, but has no designated Citigroup Country Officer, are not reflected in the above list.
 Citigroup at a glance
Citigroup has unique strengths that set it apart from the competition and enable the company to grow,
even during difficult economic conditions.

RECORD RESULTS—continued focus on growth. DIVERSIFICATION OF INCOME—highly diversified base of

earnings that enables Citigroup to thrive in difficult
2002 2001 market conditions.
% By Product*
Net Income $15.3 billion $14.1 billion Global Consumer Group 60%
Assets $1.1 trillion $1.1 trillion 60% 13% Global Corporate
Return on Common Equity 18.6% 19.7% & Investment Bank 22%
Stockholders’ Equity1 $92.9 billion $88.4 billion Smith Barney 5%
1 including Trust Preferred Securities (Private Client Group)
22% Global Investment
5% Management 13%
NET INCOME 2002 2001
Global Consumer Group $8.4 billion $6.8 billion % By Region **
North America 60%
60%
Global Corporate
& Investment Bank $3.0 billion $4.3 billion 10% Asia 10%
Japan 8%
Smith Barney $0.7 billion $0.8 billion 8% Mexico 9%
(Private Client Group) Western Europe 7%
9%
6% 7% CEEMEA 6%
Global Investment
Management $1.8 billion $1.6 billion * excludes Proprietary Investment Activities and Corporate/Other
** excludes Proprietary Investment Activities, Corporate/Other,
and Latin America

EXPENSE DISCIPLINE—we spend money like it’s our own. CAPITAL STRENGTH—Citigroup’s equity strength of
$92.9 billion is a key to our ratings.

Moody’s S&P Fitch

Revenue and Operating Expense Growth
Citigroup* Aa1 AA- AA+
6% 6%
Citibank* Aa1 AA AA+
Salomon Smith Barney* Aa1 AA- AA+
2% 2%
Travelers Insurance Company** Aa1 AA AA+
REVENUE

REVENUE
EXPENSE

EXPENSE
Printed on recycled paper. Design: Salomon Smith Barney Graphic Communications

* senior debt ratings as of 12/31/02

2002 2001 ** financial strength rating as of 01/31/03

UNPARALLELED DISTRIBUTION—largest distribution capacity of any financial services firm in the world; we serve 200 million
customer accounts, including some 24 million Internet relationships, in more than 100 countries.

1,703 Branches 1,422 Branches 12,690 Financial 15,000 Agents

5,181 ATMs 4,631 ATMs Consultants

2,186 Branches 107,000 Representatives 554 Representatives 136 Million Cards 544 Private Bankers
citigroup.com
©2003 Citigroup Inc.
109350 3/03 CIT2039