Citibank

Citibank, N.A. (where "N. A." denotes "National Association"; branded as citibank) serves as the main U.S. banking arm of Citigroup, a global financial services conglomerate. Established in 1812 under the name City Bank of New York, it was later known as First National City Bank of New York. Citibank maintains branch offices across 19 countries, with its U.S. presence focused in six key metropolitan regions: New York City, Chicago, Los Angeles, San Francisco, Washington, D.C., and Miami.

By 2023, Citibank holds the position of the third-largest bank in the United States based on asset size.

History

Founding

19th century

On June 16, 1812, the City Bank of New York was established. Its inaugural president was the statesman and retired Colonel Samuel Osgood. After Osgood’s passing in 1813, leadership transitioned through various individuals including William Few, Peter Stagg, Thomas Smith, Isaac Wright, and Thomas Bloodgood. In the aftermath of the Panic of 1837, control shifted to Moses Taylor, who primarily utilized the bank as a treasury for his business ventures. Subsequent presidents included Gorham A. Worth, Moses Taylor himself, Percy Rivington Pyne I (Taylor’s son-in-law), and James Stillman (serving from 1891 to 1909).

In 1831, City Bank was victim to one of America’s earliest significant bank robberies when thieves James Honeyman and William J. Murray absconded with tens of thousands in banknotes alongside 398 gold doubloons—equivalent to approximately $52 million today.

The institution played a pivotal role in funding U.S. government initiatives, underwriting bonds during the War of 1812 as well as $50 million in Union bonds throughout the Civil War. It was a pioneer in financial innovation by launching New York’s first foreign exchange department in 1897 and facilitating a $5 million deposit related to the U.S. acquisition of the Philippines in 1899. In 1865, it became part of the national banking system under the name The National City Bank of New York and by 1868 ranked among the largest banks in the country. After recovering from the Panic of 1893, it emerged as New York City's largest bank and by 1895 had become the largest bank nationwide.

20th century

In 1904, the bank contributed financing toward the construction of the Panama Canal. By 1906, it managed 11% of federal government deposits and acted as banker for Standard Oil. During the Panic of 1907, chairman Stillman collaborated with J. P. Morgan to stabilize financial markets.

Between 1910 and 1911, with support from the U.S. Department of State, Citibank led a consortium that took control over Haiti’s only commercial bank, enforcing a $30 million loan during the U.S. occupation beginning in 1915—an arrangement that resulted in substantial debt repayments benefiting Citibank throughout the 1920s.

Following enactment of the Federal Reserve Act, National City Bank became the first American national bank to open an international branch in Buenos Aires in 1914. Earlier overseas offices had been established by its subsidiary International Banking Corporation (IBC), which merged into National City Bank in 1918. By 1919, it was distinguished as the first U.S. bank to reach $1 billion in assets.

Charles E. Mitchell assumed presidency in 1921 and later served as chairman until 1933. Under his direction, by 1930 the bank expanded to operate 100 branches across 23 countries. Mitchell’s aggressive strategies were factors contributing to the stock market collapse of 1929 and ensuing Great Depression; he was subsequently investigated by the Pecora Commission for financial losses and misconduct, leading to his resignation.

On December 24, 1927, its Buenos Aires headquarters suffered a bombing attack carried out by Italian anarchist Severino Di Giovanni amid international turmoil.

During World War II, branches located in Germany and Japan were closed; by war’s end in 1945, Citibank managed $5.6 billion worth of U.S. Treasury securities supporting wartime efforts.

James Stillman Rockefeller held roles as president (1952) and chairman (1959–1967), representing ties to the Rockefeller family. Meanwhile, David Rockefeller became president of competing Chase Manhattan Bank in 1960.

After merging with First National Bank in 1955, it adopted the name The First National City Bank of New York, later shortened to First National City Bank in 1962. The institution diversified into leasing and credit card services during this period; it introduced dollar-denominated certificates of deposit in London—the first new negotiable instrument there since 1888—and launched its "Everything Card" credit card product in 1967 which was eventually absorbed into MasterCard.

Walter B. Wriston assumed roles as chairman and CEO starting in 1967. The bank aggressively pursued credit card expansion: acquiring Carte Blanche in 1965 (later divested due to regulatory pressure), launching its own credit card brand in 1968, then joining Master Charge (now MasterCard) by 1969 owing to high promotional expenses. Efforts to develop separate credit card brands persisted through the late 1980s.

In that same year, First National City Bank restructured into a holding company named First National City Corporation ("Citicorp"). To eliminate confusion with Ohio-based National City Corp., which was acquired by PNC Financial Services in 2008, it rebranded its banking operations as Citibank, N.A., in 1976.

By 1987, Citibank allocated $3 billion for loan loss reserves related to Brazil and other emerging markets. It launched a Polish subsidiary in 1990 and became recognized as the world’s largest issuer of credit cards by 1994.

The introduction of Citicard during the 1980s allowed customers to transact without traditional passbooks; terminals were installed at branches providing basic account information access.

John S. Reed took over as CEO in 1984; under his strategic guidance over more than a decade, Citibank expanded into becoming America’s largest bank and leading global credit card issuer with operations spanning over ninety countries.

Seeking advantageous lending regulations, Citibank established a South Dakota-based subsidiary in 1981 after state legislation raised permissible interest rates up to a national maximum of 25%, enabling profitable consumer lending despite restrictive usury laws elsewhere nationwide.

21st century

In 2005, Federated Department Stores, now known as Macy's, Inc., transferred its consumer credit portfolio to Citigroup, which subsequently reissued the cards through Department Stores National Bank (DSNB). By 2013, Citibank had established a workforce of 2,900 employees in Sioux Falls, South Dakota, significantly bolstering the state's leading position in bank asset holdings.

That same year, Citibank expanded its retail credit footprint by acquiring Best Buy’s credit card portfolio from Capital One. On April 1, 2016, Citigroup became the sole issuer of Costco-branded credit cards, a strategic alliance that strengthened its share in retail credit markets.

Citi Retail Services, Citibank’s private-label credit card division, issues store-branded cards for prominent companies such as American Airlines, Best Buy, ConocoPhillips, Costco, ExxonMobil, The Home Depot, Sears, Shell Oil, and Staples Inc., solidifying its leadership in branded credit card offerings.

Automatic teller machines

During the 1970s, Citibank was a pioneer among U.S. banks in implementing automatic teller machines (ATMs), enabling customers to access cash around the clock.

Expansion

In 2002, Citigroup broadened its presence in California by acquiring Golden State Bancorp, which included California Federal Bank, for $5.8 billion.

In 1999, Citibank faced litigation concerning improper late fee assessments on credit cards.

Citigroup entered the Texas retail banking sector in 2004 through the acquisition of First American Bank of Bryan, adding over 100 branches along with $3.5 billion in assets and approximately 120,000 customers within the state.

The bank expanded into Philadelphia in 2006 with 23 branches but withdrew from the market by 2013 due to efficiency considerations.

In 2006, Citigroup secured naming rights for the New York Mets’ Citi Field stadium under a 20-year agreement reportedly valued at $20 million annually.

As of September 2020, Citibank’s U.S. branch network is primarily concentrated in key metropolitan regions including New York, Los Angeles, San Francisco, Sacramento, San Diego, Washington DC, Las Vegas, Miami, and Chicago. California leads with a total of 292 branches.

In 2022, Citi announced intentions to reestablish a retail banking presence in Dallas through a new "experience center" located in North Dallas; however, further specifics remain sparse.

2007–2009 losses and cost-cutting measures by parent Citigroup

On April 11, 2007, Citigroup—the parent company of Citibank—revealed plans to cut its workforce by 17,000 employees, representing an 8% reduction.

Following substantial losses tied to subprime lending activities, Charles Prince stepped down as chairman and CEO of Citigroup on November 4, 2007. Robert Rubin, former U.S. Treasury Secretary, assumed the chairmanship and later appointed Vikram Pandit as CEO.

Late in 2007, Citigroup disclosed fourth-quarter losses ranging from $8 billion to $11 billion following a $6.5 billion loss in the previous quarter. By January 2008, the company reported a quarterly loss of $10 billion after recording an $18.1 billion write-down.

In November 2007, Citibank divested its 17 branches in Puerto Rico along with $1 billion in deposits to Banco Popular. In March 2008, it launched Mobile Money Ventures in partnership with SK Telecom to develop mobile banking applications; this venture was sold to Intuit in 2011. Additionally, in May 2008 Citi completed an $87.5 million leaseback arrangement involving New York City branches.

Citibank’s operations in Germany were sold to Crédit Mutuel in July 2008 and rebranded as Targobank by 2010.

Following an inquiry by the California Attorney General in August 2008 regarding unauthorized account sweeps conducted between 1992 and 2003, Citibank reimbursed customers $18 million.

During the financial crisis of 2008, Citigroup received emergency assistance from the U.S. Treasury amounting to $45 billion alongside guarantees covering $306 billion of high-risk assets. By 2010, all government loans had been repaid with interest resulting in a net gain for taxpayers.

On January 16, 2009, Citigroup separated non-core operations—including brokerage and asset management—into Citi Holdings Inc., allowing Citibank to concentrate on its principal banking functions.

2010 to present

In October 2011, Citigroup, the parent organization of Citibank, consented to a $285 million civil penalty related to fraud following SEC allegations that it had wagered against high-risk mortgage-backed securities marketed to its clientele.

By 2014, Citigroup declared its withdrawal from retail banking operations in 11 countries, primarily across Europe and Central America. That same year, it divested 41 branches in Texas to BB&T. In 2015, the bank shuttered 17 locations in Massachusetts and discontinued its sponsorship of a Boston theater.

Also in 2015, the Consumer Financial Protection Bureau mandated Citibank to pay $770 million due to misleading credit card marketing practices impacting approximately 7 million accounts.

In March 2017, reports surfaced suggesting Citibank might close all 44 of its Indian branches as digital banking reduced the need for physical locations; India was recognized as Citibank's most lucrative international market. Additionally, investigations that year uncovered that Citibank had processed $37 million associated with Russian money laundering between 2010 and 2014.

By March 2018, Citibank introduced a new firearms policy in the U.S., limiting financial dealings within the gun industry.

In April 2021, Citibank exited consumer banking in 13 countries, including Australia, China, India, and Russia. In January 2022, Citi announced its intention to withdraw from consumer banking in Mexico (Citibanamex), alongside small-business and middle-market banking services. By September 2022, Citi revealed plans to phase out retail banking activities in the United Kingdom.

In January 2024, Citi reported a $1.8 billion loss for Q4 and announced a reduction of approximately 20,000 jobs, representing around 8% of its workforce. During the 2024 investor day, Citi highlighted its Services division as a principal revenue generator via "financial pipes."

In March 2025, Citi resolved a £215,000 discrimination lawsuit involving a former employee who was denied promotion after returning from maternity leave.

Market	Acquirer/status	Announcement date	Consideration (US$)
Australia	National Australia Bank	2021-08-09	882 million
Indonesia, Malaysia, Thailand and Vietnam	United Overseas Bank	2022-01-13	3.36 billion
South Korea	Phased withdrawal underway	2021-10-25	N/A
Philippines	UnionBank of the Philippines	2021-12-23	908 million
Taiwan	DBS Bank	2022-01-28	706.6 million
India	Axis Bank	2022-03-30	1.6 billion
Bahrain	Ahli United Bank	2022-04-06	Unknown

Chairmen

Since its establishment in 1812, leadership of the bank has been held by a President initially, with Samuel Osgood serving as the inaugural officeholder. The role of chairman was first introduced in 1909 with James Stillman assuming the position.

List of Chairmen

Samuel Osgood (1812–1813)
William Few (1813–1817)
Peter Staff (1817–1825)
Thomas Smith (1825–1827)
Isaac Wright (1827–1832)
Thomas Bloodgood (1832–1844)
Gorham A. Worth (1844–1856)
Moses Taylor (1856–1882)
Percy Pyne (1882–1891)
James Stillman (1891–1918)
Frank A. Vanderlip (1918–1919)
James A. Stillman (1919–1921)
Charles E. Mitchell (1921–1933)
James H. Perkins (1933–1940)
Gordon Sohn Rentschler (1940–1948)
William Gage Brady Jr. (1948–1952)
Howard C. Sheperd (1952–1959)
James Stillman Rockefeller (1959–1967)
George S. Moore (1967–1970)
Walter B. Wriston (1970–1984)
John S. Reed (1984–1998)
John S. Reed and Sandy Weill (1998–2000)
Sandy Weill (2000–2006)
Charles Prince (2006–2007)
Sir Win Bischoff (2007–2009)
Dick Parsons (2009–2012)
Michael O'Neill (2012–2019)
John Dugan (2019– )

Controversies

Accusations of Money Laundering Involving Raul Salinas

In 1998, the General Accounting Office issued criticism towards Citibank for processing millions in transfers connected to Raul Salinas, the brother of former Mexican president Carlos Salinas. The report emphasized Citibank’s inadequate scrutiny regarding the origin of Salinas’s funds, indicating a breach of its "know your customer" protocols.

Connections with the Yakuza

Citibank encountered sanctions from Japan’s Financial Services Agency in both 2004 and 2009 due to facilitating money laundering activities by yakuza members through intricate financial transactions. Although no penalties were imposed by U.S. authorities, Immigration Customs Enforcement confiscated nearly $1 million in assets tied to Susumu Kajiyama, a yakuza-linked loan shark, between 2004 and 2006. Journalist Jake Adelstein observed that Citibank Japan lost its private banking license in 2004 because of conducting business with yakuza affiliates and faced further censure in 2009 for insufficient updates to compliance systems aimed at preventing such conduct.

Financing the Dakota Access Pipeline

Citibank is among the primary financiers of the Dakota Access Pipeline, an oil pipeline located in North Dakota. This project has sparked controversy due to environmental concerns and its effects on Siouan sacred territories and water supplies. Hugh MacMillan, a senior analyst specializing in water and energy issues, described Citibank as "managing the finances" and spearheading efforts to attract funding from additional banks.

In December 2016, Columbia University students demonstrated outside a Citibank branch to protest the institution’s involvement. Earlier that year, Columbia University replaced on-campus Citibank ATMs with those operated by Santander Bank, which has no association with the pipeline project.

Libor Rate Manipulation Settlement

In June 2018, Citibank reached a settlement with 42 U.S. states, agreeing to pay a $100 million penalty for manipulating the London Inter-bank Offered Rate (Libor). This benchmark rate is critical for numerous financial contracts and commercial transactions worldwide, influencing global markets.

Sponsorships

Citibank’s sponsorship activities encompass prominent sports events and community programs, bolstering its brand presence and market reach. Key collaborations include Citi Field, home stadium of the New York Mets, and the Washington Open tennis tournament.

Within Australia, Citibank supported the North Sydney Bears during the 1992 NSWRL season, secured a three-year sponsorship agreement with the Australian Rugby Union team in 2001, and became a principal partner of the Sydney Swans in 2005, aligning itself with major national sports organizations.

Historically, First National City—Citibank’s predecessor—sponsored prominent Indy Car drivers Johnny Rutherford and Al Unser Sr., with Unser capturing victory at the 1978 Indianapolis 500 under their banner. The company also sponsored the Tyrrell Formula 1 team during the 1977-78 seasons and presently backs Formula 1 driver Fernando Alonso.

Since 2013, Citibank has served as the lead sponsor for New York City’s bike-sharing initiative, Citi Bike, demonstrating its dedication to urban transportation solutions and community involvement.