Download March 21_915AM_ Global DCC Overview

Latin America Update
Lee Waite – Global DCC Head
Global Market Perspectives
Equity markets and Global GDP showing signs of recovery, led by Emerging Markets
Global GDP Growth
Market Index Performance
2011-2016E CAGR
250
5.8%
225
Indexed
200
175
World GDP 3.3%
150
2.8%
125
1.8%
100
0.4%
75
50
Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12
World
Source: MSCI
EM
Latam
Developed
Developed Total
Euro Area
U.S.
Emerging Total
Source: Citi Investment Research & Analysis
2
Global Trends
However, securities markets facing greater uncertainty and risks
Regulatory Changes
Cost Pressure
 Liquidity constraints
 Declining margins on the
trading and investment desk
 Dodd Frank, Volcker Rule
 Pan-European securities
integration and harmonization
Technology Differentation
 Escalating cost of
connectivity
Country Specific Events
 GIIPS
 Continuous investments in
functionality
 Middle East
Credit Risk
 Contingency planning / flight
to quality
 Increasing focus on
counterparty risk
Infrastructure Complexity
 Proliferation of CCPs,
alongside interoperability
 MTF/Exchange consolidation;
multi-market venues
3
Custodian Evolution
Clients seeking help from custodians to navigate the changing landscape
From  To
Citi Solutions
 Historical value
– Shielding clients from operational risk
Middle / Back
Office
Clearing
Custody & Asset
Servicing
Settlement
– Providing funding and liquidity
– Local market expertise and connectivity
Fails Coverage
– Leadership in market initiatives
Agent Bank
Services
 Current and future value
– Efficiency and risk management solutions
(e.g, TPC, GCM, account operator)
Third Party Clearing /
GCM Services
Client
Operations
– Extended outsourcing (e.g., MO / BO)
– New forms of collaboration
GCM Only
Account
Operator
Client In-House
Traditional Custodian Services
Citi Solutions
4
Citi Commitment
Transaction services businesses a critical component of the Citi strategy
Citicorp 2011 Revenues1
Transaction Services
Securities & Banking
Citi Direct Custody & Clearing
 Significant ongoing investment in DCC
– 2011 Technology and communications spending up 15%
Global Consumer Banking
– 2011 Headcount up 5%
– 2012 Technology and communications budget ~$50 million
17%
 Strategic focus on expanding the DCC network
– Panama and South Africa opened in 2011
52%
31%
– Industry’s largest branch network, now spanning 61
international securities markets
 Continued emphasis and investment in Product Development
Total: $62.8B
Note: 1) ex-CVA / DVA
Source: 2/8/12 Citigroup presentation at 2012 Credit Suisse Financial Services Forum
5
Citi Network
Citi has prioritized the DCC network, now covering 61 markets
Americas (11)
Canada
United States
Argentina
Brazil
Chile
Colombia
Mexico
Panama
Peru
Puerto Rico
Venezuela
EMEA (34)
Austria
Belgium
Cyprus
France
Germany
Greece
Ireland
Italy
Netherlands
Portugal
Spain
Sweden
Switzerland
UK
Bahrain
Czech Rep
Egypt
Hungary
Israel
Kazakhstan
Kuwait
Morocco
Nigeria
Pakistan
Poland
Romania
Russia
Slovakia
South Africa
Turkey
Ukraine
UAE (NASDAQ Dubai)
UAE (ADX)
UAE (DFM)
 Sharp focus on
“going where clients
want to be”
 Unparalled ability to
facilitate EM-DM
and EM-EM flows
through global
operating model
Asia Pacific (16)
Australia
Malaysia
Bangladesh New Zealand
China
Philippines
Hong Kong Singapore
India
Sri Lanka
Indonesia
Taiwan
Japan
Thailand
Korea
Vietnam
 Expansion into 11
new markets during
and after the global
financial crisis
Note: New markets opened since 2008 in bold.
6
Citi Recognition
DCC recognized with industry-leading 47 Top Rated and Commended Markets
Top Rated (38)
Commended (9)
Argentina
Australia
Austria
Belgium
Brazil
Canada
Chile
China
Colombia
Cyprus
Czech Republic
Egypt
France
Germany
Greece
Hong Kong
Hungary
India
Indonesia
Ireland
Israel
Italy
Japan
Korea
Malaysia
Mexico
Morocco
Netherlands
New Zealand
Pakistan
Peru
Philippines
Poland
Portugal
Romania
Russia
Singapore
Spain
Sri Lanka
Switzerland
Taiwan
Thailand
Turkey
United Kingdom
United States
Venezuela
Vietnam
Asia / Australasia
Americas and Caribbean
Central and Eastern Europe
North America
Western Europe
Global
Note: 1) CB/NA or Leading Clients
Source: Global Custodian 2011 Agent Banks in Major Markets and Agent Banks in Emerging Markets Surveys
7