CJL K.K. (Formerly Citibank Japan Ltd.) Annual Report
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CJL K.K. (formerly Citibank Japan Ltd.) Annual Report For the Fiscal Year Ended March 31, 2017 Table of Contents Company Overview 1 Our History 4 Management Strategy 5 Business Outline 7 Risk Management Framework 14 Compliance Framework 16 Diversity and Citizenship Activities 17 List of Locations in Japan 18 Financial Information under Japanese GAAP 19 For the Fiscal year ended March 31, 2017 1. Matters Related to Principal Business 2. Financial Statements 3. Market Value Information 4. Major Shareholders 5. Disclosure Items Based on Pillar 3 of Basel III Note: Citi transferred the entire business operations and personnel of Citibank Japan Ltd. to a newly established Tokyo branch of Citibank, N.A., a U.S. national association, at the end of the day on March 31, 2017. From and after April 1, 2017, Citi conducts its banking business in Japan solely through Citibank, N.A., Tokyo Branch (Representative in Japan, Branch Manager & CEO: Anthony P. Della Pietra, Jr.). Company Overview Company Profile Company Name Citibank Japan Ltd. (“Citibank Japan”) Head Office Address Shin-Marunouchi Building, 5-1, Marunouch 1-Chome, Chiyoda-ku, Tokyo, 100-6520 Bank Code 0401 Head Office Branch Code 730 Telephone Number 03-6897-5000 Commencement of Operations July 1, 2007 (International Banking Corporation, a predecessor to Citibank, opened its Yokohama branch in October 1902) Business Overview As one of Citi's core entities in Japan, Citibank Japan is engaged in a range of corporate banking, lending, transaction services and markets businesses on behalf of institutional clients. Number of Employees 482 Number of Locations 4 (Head Office, Higashi Shinjuku, Osaka, Okinawa) Directors and Statutory Auditors Representative Director, President Anthony P. Della Pietra, Jr. Director, Chairman Tatsuo Tanaka Director Koichi Tanaka Director Phee Boon Kang Director Ryozo Hayashi Statutory Auditor (full-time, outside) Mamoru Sato Statutory Auditor (outside) Toshiaki Kawashima Statutory Auditor Hiroto Sakai Executive Officers CEO Anthony P. Della Pietra, Jr. Deputy President and Chief Administrative Officer Koichi Tanaka Deputy President and Head of Corporate Banking Jason Rekate Division Head of Transaction Services Division Ravi Saxena Head of Transition Management Office Division Hari Iyer Head of Corporate Planning Division Hiroaki Nigo General Counsel Akimoto Kawamura Deputy General Counsel Yasuto Hashinaga Head of Compliance Division Koichi Tanaka Head of Finance Division Nicholas Koukoumelidis Head of Risk Management Division Rajesh Paradkar Head of Human Resources Division Joel Fastenberg Head of Operations & Technology Division Shankar Ramasami Chief Auditor Yuichi Ito (As of March 31, 2017) CJLK.K. (formerly Citibank Japan Ltd.) 1 Organizational Structure (As of March 31, 2017) Financial Summary (From 09/2014 to 03/2017) (Billions of Yen) 09/2014 03/2015 09/2015 03/2016 09/2016 03/2017 Ordinary income 32.1 66.3 35.0 53.2 16.4 33.3 Ordinary profit (loss) ᇞ2.8 ᇞ3.4 0.6 ᇞ2.4 0.9 1.7 Total Assets 5,267.0 5,057.2 5,718.6 3,404.3 2,913.3 246.7 Deposits 3,897.4 3,924.8 4,274.7 1,985.2 1,650.7 - Total Net Assets 254.9 252.3 250.5 276.3 250.8 244.7 Capital Stock 123.1 123.1 123.1 123.1 123.1 123.1 Capital Adequacy Ratio 23.90% 30.26% 30.94% 38.29% 42.13% 423.35% Credit Ratings (As of March 31, 2017) Moody's S&P Fitch Rating Outlook Rating Credit Watch Rating Outlook Citigroup Inc. Long Term Baa1 Stable BBB+ Stable A Stable Citibank, N.A. Long Term A1 Stable A+ Stable A+ Stable Footnote: All credit ratings of Citibank Japan Ltd., a locally incorporated bank subsidiary of U.S.-based Citigroup Inc. were withdrawn at the request of Citibank Japan Ltd., upon the transfer of all its banking operations and personnel to a newly formed Tokyo branch of U.S.-based Citibank, N.A., a subsidiary of Citigroup, at the end of the day on March 31, 2017. For further details, please refer to Citigroup Credit Ratings at http://www.citigroup.com/citi/investor/rate.htm 2 CJLK.K. (formerly Citibank Japan Ltd.) Deposit Insurance Citibank Japan (“Citibank Japan”) has its head office located in Japan and is a member of the Deposit Insurance Corporation (DIC). Pursuant to the Deposit Insurance System, non-interest-bearing Yen deposits for payment and settlement purposes accepted by Citibank Japan are protected in full per depositor; and interest-bearing Yen deposits accepted by Citibank Japan are protected up to a maximum of 10 million yen in principal plus related interest thereon per depositor. (Note) As of end of March, Deposit insurance system protection was no longer covered. Bank Agency Service Not Applicable Foreign Bank Agency Service Name of Affiliated Foreign Citibank, N.A. Bank Offices of Bank Agent Citibank Japan Head Office and Osaka Branch Service Coverage - Intermediation for acceptance of deposits or installment savings, etc.; - Intermediation for making of loans or discounting and negotiation of bills/notes; - Intermediation for exchange transactions; - Intermediation for issuance of bank guarantee and acceptance of bills/notes; and - Intermediations for other ancillary services associated with acceptance of letters of credit (“LC”) and other services relevant to LCs, etc. Designated Dispute Resolution Organization for CJL Japanese Bankers Association (“JBA”) Contact for consultation and exchange of views: JBA Customer Relations Center 0570-017109 or 03-5252-3772 CJL has concluded a Basic Contract for Implementation of Dispute Resolution Procedure with JBA, the Designated Dispute Resolution Organization under the laws and regulations. JBA runs the JBA Customer Relations Center as a contact point to which customers can go for consultation and inquiries or to which they can direct their opinions and complaints about banks. Refer to the JBA website for more information. http://www.zenginkyo.or.jp/adr/ * JBA Customer Relations Center’s services are available only in Japanese. CJLK.K. (formerly Citibank Japan Ltd.) 3 Our History 1812 City Bank of New York established. 1902 International Banking Corporation opened its first branch in Yokohama. 1923 International Banking Corporation opened Tokyo Branch (temporarily closed in 1941, reopened in 1946). 1973 First National City Corporation is listed on Tokyo Stock Exchange (delisted in 1998 with the merger between Citicorp and Travelers Group). 1974 First National City Corporation holding company changes its name to Citicorp. 1980 Decades of innovation and expansion lead to Citibank having operations in 90 countries. 1998 Citicorp and Travelers Group merge to form Citigroup Inc. 2007 Citibank Japan Ltd. commences operations as a locally incorporated bank. 2012 Citi celebrates its 200th anniversary globally and its 110th anniversary in Japan. 2016 Citi expands its global Desk Network with opening of new desks in Vietnam and Mexico. 4 CJLK.K. (formerly Citibank Japan Ltd.) Management Strategy Citi’s Value Proposition: A Mission of Enabling Growth and Progress Citi's mission is to serve as a trusted partner to our clients by responsibly providing financial services that enable growth and economic progress. Our core activities are safeguarding assets, lending money, making payments and accessing the capital markets on behalf of our clients. We have 200 years of experience helping our clients meet the world's toughest challenges and embrace its greatest opportunities. We are Citi, the global bank – an institution connecting millions of people across hundreds of countries and cities. We work with companies to optimize their daily operations, whether they need working capital, to make payroll or export their goods overseas. By lending to companies large and small, we help them grow, creating jobs and real economic value at home and in communities around the world. We provide financing and support to governments at all levels, so they can build sustainable infrastructure, such as housing, transportation, schools and other vital public works. These capabilities create an obligation to act responsibly, do everything possible to create the best outcomes, and prudently manage risk. If we fall short, we will take decisive action and learn from our experience. We strive to earn and maintain the public's trust by constantly adhering to the highest ethical standards. We ask our colleagues to ensure that their decisions pass three tests: they are in our clients' interests, create economic value, and are always systemically responsible. When we do these things well, we make a positive financial and social impact in the communities we serve and show what a global bank can do. Citibank Japan Management Strategy Citibank Japan has a long and distinguished history serving institutional clients in Japan. We have a proud legacy of developing innovative relationship-driven solutions for our clients and delivering the power of Citi’s global network to meet their needs. Citibank Japan aims to be the leading global bank for a select set of Japan’s leading multi-national companies and institutions, as well as the leading global bank serving Citi’s non-Japanese multi-national and institutional clients with operations or investments in Japan. Citibank Japan focuses on providing comprehensive global relationship management services to a targeted set of Japan’s largest multi-national companies and institutions. We coordinate and leverage Citi’s broad range of products and services, together with Citi’s unrivaled global network, in order to support the growth ambitions of our clients in Japan and around the globe. Our core set of product and services at Citibank Japan is offered by three product groups that work closely with one another and with our relationship managers to serve our clients: Transaction Services Division (Cash Management, Trade, and Securities Services), Markets Division (Foreign Exchange and Markets Treasury), and Corporate Finance and Real Estate Department (Structured Finance, Real Estate Finance, Acquisition Finance, Syndicated Lending). Widely recognized as an industry leader, Citibank Japan has been consistently ranked at the top of major industry surveys, in particular for transaction services and foreign exchange.