Client Brief

Prepared by : Raymond Morrison

Client Coverage - Banks and DFI Team
Date : 2014/09/18

Financial Institution:

CITIBANK NA

Relationship Status

Tier 1

Tier 2B

Tier 3

A Key Enabler (Notes/Sell down Partner/Other)

Major Funder or value add to group Treasury

Country:

USA

Relationship Manager:

Raymond Morrison

Primary Client Contacts:

Name

Designation

Tom Issac

Managing Director of FIs

William Weaver

Head of CEEMEA DCM

David Basra

MD CEEMA DCM

Tommaso Ponsele

MD DCM Capital Management

Greg Brandtner

Director Citi Emerging Markets

Prabashni Howard

Director Financial Institutions South Africa

Rotimi Adeoumi

Director GTS London

Isaac Kamuta

MD Cash Sales Sub Saharan Africa

Jack Jared

MD - Institutional Client Group

Doug Young
Seb Taylor

Senior correspondent Banker Bank Services group

EMEA
Global Head of Network management - Custody

David Critchley

Director network management Custody

When
th
18 September 2014

Where
Johannesburg

Last Meeting Date:

Page 1 of 6

Meeting Objective
Conference with a
number of parties call re
Citis approach to serial
payments

Brief Background:

Client Profile:

Citigroup Inc. or Citi is an American multinational banking and financial

services corporation headquartered in Manhattan, New York City. Citigroup
was formed from one of the world's largest mergers in history by combining
the banking giant Citicorp and financial conglomerate Travelers Group in
October 1998
Citigroup has the world's largest financial services network, spanning 140
countries with approximately 16,000 offices worldwide and holds over 200
million customer accounts and employs 251 000 staff worldwide
Citigroup processes 60% of all securities globally and does 40% of all cash
management globally.
The current CEO is Michael Corbat has been at the helm since October 2012
Citigroup are the largest of the international banks whom have a full branch
staffed by 300 people.
th
Citibank South Africa is the 6 largest bank in SA
Financials (USD)
Assets
$ 1,880 trillion
Capital
$ 204,3 billion
Primary Business Lines
Banking Accounts, Borrowing,
Commercial Banking, Consumer
Lending, Financial Services - Small &
Large Corporations, Governments,
Institutional & Individual Investors,
Internet Banking, Investment Services,
Small Business Lending.

Country:

Ratings

Long-Term
A
A2
A+

Country Rank:

Fitch Ratings

World Rank:

16

Moodys
S&P

Relationship
Profile:

Strengths and Relationship Highlights:

Prior to self-clearing its own ZAR cash and custody in 2013 Citigroup was the 2nd largest
revenue contributing international bank relationship to FRB
The revenue generation side of the relationship has significantly changed albeit there is
still some limited activity that is conducted through RMBs RAS , Custody and Trade
relationships
Citi were the strongest performer in the recent USD Nostro services RFI and have offered
us a number of value adding reciprocity opportunities which we will look to take move
ahead on once we complete the process in October 2014
We have advised that they are one of the 5 successful banks that were chosen to
continue as USD providers to FirstRand Limited and will continue as our groups USD
cheque issuing bank relationship
The relationship with Citi had gone severely backward whilst the FX auto conversion
product ( whereby they auto convert FNBs beneficiaries payments from USD into ZAR)
was active as we believed that they were not a true relationship partner if they

Page 2 of 6

unilaterally continued the practice.

Following various requests from the relationship management team of FR- Citigroup
eventually agreed in October 2012 to switch off the FX auto convert product
We continue to monitor the stats to ensure that and the auto conversion remains off
which it has
The relationship has strengthened since October 2012 and there is more constructive
dialogue in looking to find mutually beneficial opportunities across both our groups
Citigroup had suggested entering into a formal arrangement with FR to service their
multinational clients needs where we are present in Africa and they arent .We declined
the offer rather choosing to work on a case by case basis on each opportunity to date we
have co-collaborated on 4 client opportunities in Swaziland , Lesotho and Namibia
Some Recent Relationship Successes/Mandates:
Citi were awarded the KES and UGX clearing account for FirstRand Bank Limited this
activity was previously undertaken with Barclays and was moved owing to operational
and relationship issues with Barclays.
Citi chose RMB DCM team to undertake an inward listing of an SPV to list structured
notes to SA investors the process in underway with conclusion aimed at November 2014
Areas where we can Improve:
With the relationship in a much healthier state currently we continue dialogue around areas that
will work for both banks

Revenue
Profile:

Full Year June 2013

Rand Account Services
Trade
Custody
GM Flows Notes
Total
FRB Funding(USD)
Budgeted 2015 R 3 000 000

Page 3 of 6

Full year June 2014

R 19 778 573

R 14 260 327

R 988 742

R 692 843

R 11 233 691

R 5 949 404

R 364 490

R 353 890

R 32 432 198

R 21 256 464

$25m

$25m

Client Action Plan

Opportunities /Objectives
RMB Perspective Priorities for us

Action

Status

Action

Status

Continue as balance sheet supporter to

FirstRand
Ensure the FX auto conversion is turned
off
Continue to engage on collaborative
opportunities with Citi in SA and Africa
where it makes sense

Opportunities /Objectives
Client Perspective Priorities for them
Additional USD commercial flows
Inclusion on future FR Group treasury
capital and debt mandates
Collaboration in Africa where FR has a
presence and client offering and Citi
doesnt

Page 4 of 6

Overall Temperature Check Relationship Engagement with Business Units

Global Markets RAS
With Citi self-clearing its own ZAR the current activity with RAS is what is left on the back of the CGM custody
activity and all eventually will move when every Citi entity moves resulting in a significant revenue loss
Global Markets Trading/Notes/Structuring
The GM team across various trading areas maintain an extremely strong relationship with Citi both in SA and in
London.
Citi SA buy notes from RMB we are looking to broaden that to other areas within SSA but havent found an
optimal pricing structure that suites both parties
FR Group Treasury portfolio management use Citi as one of its trading counterparties.
Global Markets Trade
Whilst a good relationship exists in both the primary and secondary space with Citi there is still more that we
can together in Africa.
Minos ,Gill and Raymond recently met the head of trade in SA Yusuf Ail with a view to consider trade backed
loans as a form of funding for FR
Custody
CGM eventually moved in April 2014 to the local office of Citi
Group Treasury
A strained relationship previously existed with the bank lending syndicate and capital team within Citi as the
overriding feeling being that Citi dont run a relationship model but purely product push with immense
dissatisfaction should they not be awarded a mandate or lead role on a transaction.
This has changed recently and their coverage of us has improved dramatically
They have indicated that they have appetite to continue to offer balance sheet support to us where we think it
makes sense for us i.e. senior unsecured, trade backed or via OPIC
Corporate Banking:
CitiGroup were the top respondent on the USD RFI and will be rewarded with the largest amount of FR Limiteds
outbound USD commercial payments once the process has been finalised in October 2014

MT 103
MT 202
Payments

MT 700
Trade Finance

CITIBANK N.A. (Jul 13 - June'14)

Amount Sent
Amount Received (base
# Messages Sent
(base currency)
currency)
USD 31 036 486 100
22 556
USD 47 696 868 765
USD 1 766
1
USD 1 004 283 722
USD 22 525 300 888
9 504
USD 42 697 940 059
USD 4 790 719 401
10 795
USD 1 743 914 674
USD 58 352 508 155
42 856
USD 93 143 007 220
Amount Sent
Amount Received (base
# Messages Sent
(base currency)
currency)

# Messages
Received
95 883
9 371
13 226
4 819
123 299
# Messages
Received

USD 88 868 667

85

USD 18 987 149

33

USD 88 868 667

85

USD 18 987 149

33

Page 5 of 6

Page 6 of 6