Annual Report for the Fiscal Year Ended March 31, 2016
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Citibank Japan Ltd. Annual Report For the Fiscal Year Ended March 31, 2016 Table of Contents Message from the CEO 1 Company Overview 2 Our History 5 Management Strategy 6 Business Outline 8 Risk Management Framework 14 Compliance Framework 16 Diversity and CSR Activities 17 List of Citibank Japan's branches 18 Citibank Japan Ltd. Financial Information under Japanese GAAP 19 For the Fiscal year ended March 31, 2016 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 Message from the CEO To Our Valued Clients, I am honored to serve as President & CEO of Citibank Japan Ltd. Citibank has a 114-year history in Japan, and today Citibank Japan proudly serves governmental institutions, financial institutions, multinational corporations and institutional investors across a range of corporate banking, lending, transaction services and markets businesses. Citibank Japan has built a reputation for providing innovative and high quality products and services and for delivering the power of Citi's unrivalled global network to support our clients. We are committed to continuing to serve our clients in Japan; to being a bank with strong governance and controls; to making meaningful contributions to Japan’s economy and banking system; and to being a responsible member of Japanese society. Thank you very much for your continued patronage and support. July 2016 Anthony P. Della Pietra, Jr. Representative Director, President & CEO Citibank Japan Ltd. Citibank Japan Ltd. 1 Company Overview Company Profile Company Name Citibank Japan Ltd. (“CJL”) Head Office Address Shin-Marunouchi Building, 5-1, Marunouchi 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, CJL is engaged in a range of corporate banking, lending, transaction services and markets businesses on behalf of institutional clients. Number of Employees 497 (As of March 31, 2016) 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 Shirish Apte 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 Grant Carson 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 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 July 1, 2016 except for Number of Employees) 2 Citibank Japan Ltd. Organizational Structure (As of July 1, 2016) Financial Summary (From 09/2013 to 03/2016) (Billions of Yen) 09/2013 03/2014 09/2014 03/2015 09/2015 03/2016 Ordinary income 34.7 68.3 32.1 66.3 35.0 53.2 Ordinary profit (loss) 1.4 2.8 2.8 3.4 0.6 2.4 Total Assets 4,536.0 4,513.9 5,267.0 5,057.2 5,718.6 3,404.3 △ △ △ Deposits 3,906.9 3,636.0 3,897.4 3,924.8 4,274.7 1,985.2 Total Net Assets 262.1 256.3 254.9 252.3 250.5 276.3 Capital Stock 123.1 123.1 123.1 123.1 123.1 123.1 Capital Adequacy Ratio 28.62% 25.72% 23.90% 30.26% 30.94% 38.29% Credit Ratings Moody's S&P Fitch Rating Outlook Rating Credit Watch Rating Outlook Citibank Japan Ltd. Long Term A1 Stable A Positive A Positive Citigroup Inc. Long Term Baa1 Stable BBB+ Stable A Stable Citibank,N.A. Long Term A1 Stable A Positive A+ Stable (As of July 1, 2016) For further details, please refer to Citigroup Credit Ratings at http://www.citigroup.com/citi/investor/rate.htm Citibank Japan Ltd. 3 Deposit Insurance Citibank Japan (“CJL”) 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 CJL are protected in full per depositor; and interest-bearing Yen deposits accepted by CJL are protected up to a maximum of 10 million yen in principal plus related interest thereon per depositor. Bank Agency Service 1) Name of Bank Agent Citigroup Global Markets Japan, Inc. (“CGMJ”) Offices of Bank Agent CGMJ Tokyo Headquarters Service Coverage - Intermediation for conclusion of a contract on acceptance of deposits or installment savings, etc.; and - Intermediation for conclusion of a contract on exchange transactions 2) Name of Bank Agent SMBC Trust Bank Ltd. Offices of Bank Agent 24 branches below: Aoyama, Akasaka, Ginza, Gotanda, Shibuya, Ikebukuro, Ohtemachi, Shinjuku Minamiguchi, Tachikawa, Shinjuku Higashiguchi, Hiroo, Nihonbashi, Yokohama, Urawa, Chiba, Umeda, Osaka Ekimae, Shinsaibashi, Ashiya, Kobe, Kyoto, Nagoya, Sapporo and Fukuoka Service Coverage - Intermediation for acceptance of cash for the credit of savings and current accounts; and - Intermediation for cash payment and debiting from savings or current accounts Foreign Bank Agency Service Name of Affiliated Foreign Citibank, N.A. Bank Offices of Bank Agent CJL 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 - Intermediation 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 Banking Act. 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. 4 Citibank Japan Ltd. Our History 1812 City Bank of New York is established. 1902 International Banking Corporation opens its first branch in Yokohama. 1923 International Banking Corporation opens 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. 2011 Citi expands its Japan Desk network around the globe, opening in Dubai and Sao Paolo (10 locations as of July 1, 2016). 2012 Citi celebrates its 200th anniversary globally and its 110th anniversary in Japan. Citibank Japan Ltd. 5 Management Strategy Citi’s Mission and Value Proposition: A Mission of Enabling 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 protect people's savings and help them make the purchases—from everyday transactions to buying a home—that improve the quality of their lives. We advise people on how to invest for future needs, such as their children's education and their own retirement, and help them buy securities such as stocks and bonds. 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’s 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.