Citibank Citibank

CJSC KB Citibank began its activities in Russia in 1992 and is one of the first international banks to enter the Russian market. Citibank is one of the largest banks in the country in terms of capital and assets.

Citibank CJSC is part of Citi Corporation and provides individuals, companies and government agencies with a wide range of world-class financial products and services, as well as access to innovative banking technologies.

CJSC KB Citibank is one of the leading Russian banks with more than 3,000 employees in 11 cities of Russia (including the operating center in Ryazan) and serving more than a million customers, and its network includes more than 50 branches and more than 550 ATMs. To date, Citi is represented in three CIS countries - Russia, Ukraine and Kazakhstan.

Corporate Customer Service

Citibank is one of the largest banks in Russia in terms of the number of corporate clients, turnover and asset size. Citi provides global cash management services to more than 3,000 leading Russian and international companies, as well as advising many of them on the implementation of international acquisition plans.

Acting as a consultant to corporate clients, Citibank is a key element in the implementation of any banking products and services and offers solutions that contribute to the increase in customer profits and meet their needs.

The list of our corporate clients includes industrial giants of the country, leading international and new Russian companies, as well as large financial institutions. Citibank CJSC provides them with access to a full range of banking services and provides comprehensive solutions to financial issues.

Private Customer Service

CJSC KB Citibank began work on servicing individuals, opening the first retail additional office in Moscow in 2002. Citi now serves more than 1 million customers throughout Russia.

Citi private customers have access to bank services in more than 50 branches and over 550 ATMs, as well as through CitiPhone and Citibank Online services. In Russia, Citi has more than a million customers, including more than 500 thousand credit card holders. Most of our customers apply to Citi for more than one service: they choose Citi for ease of service, ease of use of banking services and a high level of security.

Activity

Citi offers the following products and services to individuals:

• credit cards with a grace period of lending;
• loans for urgent needs; investment products;
• multi-currency checking and savings accounts;
• salary projects for enterprises;
• online banking Citibank Online;
• the mobile version of the Internet bank Citi Mobile;
• CitiPhone 24-hour telephone banking system;
• SMS system - Citibank Alerting Service account and transaction alerts;
• exclusive premium banking package Citigold et al.

Performance indicators

2023: Net profit in the first quarter - 7.6 billion rubles

According to the results of the first quarter of 2023, Citibank's assets decreased from the beginning of the year by 17.5% - to 478.8 billion rubles, the loan portfolio more than halved - to 131 billion rubles. As of March 31, customer funds amounted to 328.6 billion rubles, having decreased by 21.2% since the beginning of the year. The net profit of the Russian subsidiary Citi in January-March amounted to 7.6 billion rubles.

2022: 2.6-fold increase in net income

In 2022, Citibank's net profit amounted to 23 billion rubles, which is 2.6 times more than a year ago. Such data are provided in the statements that the credit institution published in early June 2023.

According to Interfax, citing Citibank's materials, the bank reported 4.9 billion rubles in losses from operations with financial assets and securities measured at fair value through profit or loss. In addition, provisions in the amount of RUB 6.7 billion were made for expected credit losses on securities measured at fair value through other comprehensive income.

Citibank's net profit amounted to 23 billion rubles

In 2022, the bank's net interest income increased 1.6 times, amounting to 38.7 billion rubles. In 2022, Citibank allocated 7.5 billion rubles to loan reserves against 1.3 billion rubles in 2021. The bank does not disclose revenues from operations with foreign currency and precious metals, the agency notes.

Citi Group, after unsuccessful attempts to sell Citibank from the third quarter of 2023, began to curtail the Russian retail business and the business of working with Russian small and medium enterprises (SMEs). The process will affect approximately 2.3 thousand employees, 15 branches (including branches) and retail services such as consumer loans, credit cards and deposits, brokerage and depository services for individuals. At the end of November 2023, Citibank stopped opening savings and savings accounts.^[1]

History

2024: Sovcombank recovered $24 million from Citibank

On April 9, 2024, the Arbitration Court of the Moscow District rejected the cassation appeal of Citibank, upholding the decision to recover losses from the American Citibank in the amount of $24.1 million in favor of the legal successor Sovcombank , Assistance to International Settlements LLC. The proceedings were initiated in connection with the current geopolitical situation and sanctions restrictions.

Court documents, according to Interfax, say that on October 30, 2017, Sovcombank and Citibank entered into a master agreement providing for one or more transactions. Subsequently, as a result of the carried out transactions and the "offset of homogeneous counterclaims," Citibank had a debt to Sovcombank in the amount of $24.1 million.

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On March 17, 2022, Citibank confirmed the debt, saying that the money would be credited "to a blocked account due to sanctions restrictions." However, due to the freezing of Sovcombank's assets in American banks, Citibank does not fulfill its obligations amid sanctions.

To resolve the issue, the Russian side went to court. On September 21, 2023, the Moscow Arbitration Court satisfied Sovcombank's claim against Citibank and its Russian structure Citibank for $24.1 million in losses. Subsequently, this decision was confirmed by the Ninth Arbitration Court of Appeal, which also replaced the plaintiff - PJSC Sovcombank - with its successor, LLC Assistance to International Settlements, in the order of procedural succession. The defendants sent a cassation appeal, but it was rejected.

The voluntary adherence of a foreign person to measures of a restrictive nature of foreign states does not exempt the defendant from liability. Thus, the non-allocation (blocking) of the corresponding funds... testifies to deliberate misconduct (abuse of the right), which is the basis for recovering losses, the ruling says.[2]

2023

Plans to dismantle all ATMs in Russia by the end of the year

On September 4, 2023, Citibank CB announced the start of the process of termination of services in. ATMs bank All ATMs in Russia in Citibank are planned to be dismantled by the end of 2023.

According to representatives of the bank, Citibank clients can perform most of their operations in the Citibank Online Internet bank and the Citi Mobile mobile application.

Sale of credit card customers to Uralsib Bank

Citibank will give credit card customers to Uralsib. The American bank is folding and decided at the end of May 2023 to conduct a deal with the bank, which is under US sanctions.

Three structures refused to buy the bank because they cannot get its IT systems due to US sanctions

Citigroup cannot sell its Russian business due to the inability to transfer to customers a set of IT systems serving Citibank. Without IT systems that ensure the processing and conduct of transactions, the credit institution is simply not needed by Russian buyers.

The problem is that the systems use software from American companies, in particular Cisco and Oracle, which stopped distributing it to the Russian Federation in 2022. Due to sanctions, the bank cannot transfer the necessary equipment and software (software) to a potential purchaser, they say. Due to IT problems, at least three structures have already abandoned the purchase of Citibank by March 2023.

2022

Uralsib closed a deal to buy Citibank's consumer loan portfolio

Uralsib closed the deal to buy Citibank's consumer loan portfolio. The acquired portfolio includes consumer loans without collateral, further maintenance of which from the moment of purchase of the portfolio will be carried out at Uralsib, the bank said on December 12, 2022.

As the press service of Uralsib added, the acquired portfolio has a high credit quality, makes it possible to significantly increase the client base in Moscow and St. Petersburg and contributes to an increase in the profitability of the bank's assets.

Uralsib bought out the portfolio of consumer loans of individuals of Citibank

Earlier in 2022, Citigroup announced that the Russian banking subsidiary would transfer the loan portfolio in installments and credit card balances to Uralsib Bank. This fact was confirmed by Uralsib itself, indicating that the transaction will contribute, among other things, to an increase in the profitability of the bank's assets.

In August 2022, RBC, citing two sources in the financial market, announced that Uralsib Bank was interested in the loan portfolio of the Russian division of the American financial global corporation Citigroup - Citibank. Then it was clarified that Uralsib was considering the purchase of only a retail loan portfolio, and not the entire bank.

On August 25, 2022, Citigroup decided to curtail its retail business, as well as its small and medium-sized business in Russia. During this process, the company planned to sell some portfolios of the retail business. It was reported that the process of winding down the business will begin in the third quarter of 2022. It should affect about 2,300 employees from 15 branches, including branches of companies, as well as retail services such as consumer loans, credit cards, deposits, brokerage and depository services for individuals.^[3]

Penalty for illegal use of Russian software

At the end of November 2022, it became known that Citibank was fined for illegal use of Russian software. This is a Smart IDReader product designed to recognize identity documents. Read more here.

Uralsib entered into an agreement on the purchase of Citibank's consumer loan portfolio

Bank Uralsib"" on October 28, 2022 entered into an agreement on the purchase of Citibank's consumer loan portfolio RBC , two sources in the financial market said.

According to one of them, we are talking about the assignment of rights to such loans, in addition, Uralsib will be able to refinance Citibank credit cards if their holders agree to this operation.

The volume of assets in Russia - $9.8 billion

At the end of February 2022, Citigroup cited an assessment of its assets in Russia - $9.8 billion. The group made the announcement amid sanctions the west is imposing on the Russian financial sector.

By the end of February 2022, Citigroup offers both institutional and consumer banking services in Russia, but is working to exit the consumer business as part of a broader strategy. According to Reuters, assets of $9.8 billion are more than previously known.

Citigroup estimated its assets in Russia at $9.8 billion

This amount includes $5.4 billion in loans, securities and financing obligations. Also included in the calculation are about $1 billion of free funds, which are placed in the Central Bank of the Russian Federation and other financial institutions. In addition, $1.8 billion - obligations under reverse repo transactions and $1.6 billion - assets and liabilities related to Russian counterparties, but located outside its Russian division.

Citigroup continues to monitor the current geopolitical situation in Russia and Ukraine, and also makes an analysis of economic conditions. The bank will reduce its risks and exposure to them as needed, "said Citigroup CEO Jane Frazier.

Citigroup is the only one of the largest American banks to disclose information about its obligations to Russia as of February 2022. This topic became relevant for the largest banks when the US government imposed sanctions against the Bank of Russia, the Ministry of Finance of the Russian Federation and the National Welfare Fund. The measures imply a ban for American individuals and legal entities on any operations with these structures. In addition, the Bank of Russia, the Ministry of Finance and the NWF will be deprived of access to assets in the United States.^[4]

2021

Leaving the retail business and selling assets

On July 13, 2021, it became known that Citibank began selling the retail business.

Citibank sent out proposals to participants in the banking market from the top 30 to acquire its entire retail business, Kommersant reports, citing sources in several banks.

Informally, bankers provided information on what is being sold:

• 250,000 customer cards,
• loans in the amount of about 40 billion rubles,
• obligations of the bank to individuals for approximately 160 billion rubles,
• most of the network (as of July 2021, according to, the to data CENTRAL BANK bank has seven branches, eight additional offices and 15 operofises), and with them 2 thousand employees.

Citibank does not want to sell the retail business in parts, although this is what foreign players who have left Russia or reduced their presence in the local market have done so far.

Citibank will retain two to three branches to serve corporate clients. The seller did not set the price of the business, offering to do this to potential buyers. The best will be chosen from the proposals received. Bankers agree that a special deal design is needed to sell the entire retail business.

According to the source, Citibank has already worked on this issue with the Central Bank and received consent to allocate retail from the bank for one day for subsequent joining the buyer.

The procedure will be carried out with the allocation of a credit institution - Citibank Special, which will include the listed assets. The bank will last only a day and will be attached to the buyer, which will allow transferring not only assets, but also liabilities without agreement with customers.

The Civil Code spelled out the procedure for reorganizing the bank in the form of an allocation, - explains Igor Dubov, partner of the Moscow colleague of lawyers Iontsev, Lyakhovsky and Partners. - But the Central Bank did not issue regulations for it. Such a procedure is possible only with the full consent of the regulator, the bank itself, in fact, cannot initiate it.

The Central Bank does not comment on the existing banks. Citibank said "details related to the retail business sale process are confidential." The strategy for the development of the bank's institutional business in the Russian Federation does not change, it will continue to serve corporate clients, Citibank stressed there^[5].

Termination of work with individuals in Russia

On April 15, 2021, Citigroup announced the curtailment of retail business in Russia, as well as in 13 other countries. According to the general director of the financial group Jane Fraser, I had to take such a step, since the bank does not have the resources to compete in these regions.

The corporation will change its strategy and direct investments and resources to enterprises "in which the company's competitive advantages and capabilities are largest - to ensure the greatest profitability," he added.

It is expected that the process of leaving Citigroup from Russia may take several years. Therefore, the Citibank"" member of the group will continue to serve customers as usual, the company said in mid-April 2021.

Citigroup announced the termination of work with individuals in Russia

By this time, Citibank was represented in eight cities of Russia (16 branches were opened there), where almost 500 thousand people use its services. The credit institution does not intend to curtail work with corporate clients.

Citibank has served individuals in Russia since 2002, and by 2021 it took 17th place in the country in terms of assets and 41st place in terms of loans issued to individuals. The bank was one of the first in Russia to issue credit cards, but by 2021 its share in this market fell to 1.2%.

Citigroup's decision to sell the retail business in Russia was made as part of a review of the company's strategic positioning, the press service explained. It is noted that this step "corresponds to Citi's efforts to simplify the company."

Fitch withdrew Citibank's rating, confirming it at BBB with a "stable" outlook. The agency's comment clarified that this happened for reasons of a commercial nature. Analysts noted that the crisis and the coronavirus pandemic had a moderate impact on Citibank's loan portfolio^[6]

2017

Citi opens API to Russian developers

The global financial company Citi opened an API portal for working with Russian fintech companies at the end of 2017. According to the press service of the company, thanks to the use of the ready-made code of the bank's systems, the platform will help developers easily create applications and integrate service solutions for Citi retail clients in Russia^[7] for ^[8]

To connect to the service, fintech companies need to apply for registration, study the API and send ideas for integrating their products and solutions with Citibank services.

Is Citibank preparing to leave Russia?

Citibank, a subsidiary of American  Citigroup, is working on a new strategy that has led to an outflow of retail customers: in two years their number has decreased by 40%. Experts believe that business cuts are aimed at quickly curtailing business in Russia in the event of sanctions.

According to the Kommersant newspaper, the bank in two years halved the number of offices, to 24, significantly reduced the issue of credit cards for the mass segment, since 2014 the number of private clients has decreased by 40%, to 600 thousand people.

According to Mikhail Berner, head of the bank's private customer management department, this was due to the clearing of the portfolio from inactive accounts, which began in 2014 and is being carried out for the first time since Citi arrived in Russia, that is, since 2002. At the same time, the bank is on a firm course towards digitalization, the vast majority of customers use the bank's services only through remote channels. According to Citibank forecasts, the number of users of remote service channels will reach 75% by 2018.

M. Berner also said that the bank is working on the development of remote channels and is looking for a solution to organize a transfer system from card to card. At the same time, customers will be able to withdraw cash without commission from ATMs of any banks.

Although the loan portfolio of individuals has grown by 8% since the beginning of 2016, to 50.3 billion rubles, according to sources close to the bank, this was due to an increase in limits to existing customers. There are very few new giveaways, and business cuts are Citibank's conscious policies.

2016: "Citibank" will try to "digitize"

On June 14, 2016, it became known about the plans of the Russian Citibank to transfer 75% of customers to online service by 2018. Some of the bank's branches will be closed, some will be presented in a "digital" format^[9].

Media Wall "Citibank," (2015)

According to RBC, the company plans to save "millions of dollars" in two years. The bank suggested that the savings would be "significant," but did not specify the amount.

At the beginning of June 2016, under the control of Citibank in Russia, 38 branches. The company is going to liquidate some of them (exact reduction plans have not been published), some of the remaining ones will be converted to "digital" format. In them, customers will be able to independently perform banking operations on devices in the hall with the participation of bank managers.

At the end of 2014, Citibank had 1 million private clients, by June 2016 their number had decreased to 800 thousand. This is in line with the bank's strategy, the company noted.

Today we pay more attention to the middle class and wealthy Russians. Mikhail Berner, Head of the Citibank Private Account Department

2015: Mark Lue - Head of Business in Russia

On September 3, 2015, it became known that Marc Luet took the post of President of Citibank CB JSC and Chairman of the Board. Natalja Nikolaeva headed the Bank's Board of Directors.

The Bank of Russia approved the candidacy of Mark Lue, Head of Citi Russia and Central and Eastern Europe, as President of Citibank CB, and confirmed his powers as Chairman of the Bank's Management Board. Natalya Nikolaeva, until that moment the Acting President of the Bank, retained membership in the Bank's Management Board and the Head of the Department for Work with State Bodies, she also headed the Board of Directors of Citibank CB JSC.

"Russia has been and remains an important business for Citi, and we consistently continue to work with our clients in Russia, which is more than 4,000 institutional and about 1 million retail clients. I am honored to work in Russia with a strong team of professionals and continue the development of the bank, "said Mark Lue

Notes