WIXLIB

CEO’sStatementHigh adoption and utilisation of electronic bankingplatforms (CitiDirect, Citibank.com, CitiConnect) by bothour corporate and consumer clients further validate ourdigital strategy as the world’s premier digital bank.Consumer BankingCredit CardsWe continued to search for new drivers of growth in anenvironment of heightened competition, thinning marginsand stricter regulations. Priorities included maintainingmarket share, building wallet share, improving costsynergies and productivity, dominating digital andpayment products and greater regional coordination.Industry accolades during the year included the Awardof Credit Card Product of the Year (Malaysia) for the CitiRewards Platinum Card which was launched in 2013. Theaward was given out in 2014 during the Cards andElectronic Payment International (CEPI) Asia PacificTrailblazers Awards event.The same card won the 2014 Marketing EffectivenessAwards for excellence in launch marketing campaign“New Card, New Rules” given out by the Advertising &Marketing Magazine in Malaysia.Differentiating in today’s competitive lending landscape,Citi in Malaysia further enhanced its unsecured personalloan value proposition in July 2014 by offering loans upto 8x of the applicant’s monthly gross income or amaximum of RM150,000, whichever is lower. Thisstrategy has put our lending business on an upwardtrajectory with an average quarter-on- quarter salesgrowth of 61% after this implementation.Retail BankingIn view of uncertainty in the global economy andfinancial market volatility, our key focus in the retailbusiness was to address the changing needs of ourcustomers by carefully assessing their portfoliorequirements and identifying opportunities in anotherwise challenging macro-economic environment.We continued to build on the successes of 2013 byrolling out more customised product propositions suchas investment products denominated in foreigncurrencies to give more options to clients diversifyingtheir asset holdings.By June 2014, the business achieved a new milestonewhen assets under management (AUM) exceededC I T I BA NK BERHA DANNUAL REPORT 201408RM3.50 billion, the highest AUM level since the start ofthe business in 2000.On the awards front, Citi in Malaysia won the PrincipalFinancial Group’s Best IUTA for AUM Builder Fund Awardin 2014 for the sixth consecutive year. This awardhonours Citi for its outstanding performance in terms ofUnit Trust sales for CIMB-Principal in Malaysia.We also continued to leverage our strong research andadvisory services to organise our Citi Wealth Series ofmarket outlook presentations for CitiGold andinvestment customers. Eight seminars were held in KualaLumpur, Penang and Johor Bahru delivered by ourregional investment strategist.MortgagesBank Negara Malaysia (BNM) introduced severalguidelines to promote and build long term stability inthe property market namely the cap on the maximumloan-to-value ratio and curbs to the Developer InterestBearing Scheme. Real Property Gains Tax rates wereincreased to curb speculation. There were changes inthe rules governing acquisition of residential propertiesby foreigners.In line with market conditions, Citi partnered with toptier developers to offer more property buyers Citi’sunique selling proposition of fastest turnaround time viathe 10-minute home loan approval.Institutional Client GroupTreasury and Trade SolutionsCiti played a leading role in driving the digitisationagenda for corporate and institutional clients in Malaysia.Our CitiDirect BE. Payment Risk Analytics offered clientsnew insights into their corporate payment trends, helpedidentify abnormalities and supported enhanced controls.Liquidity Management and Direct Collection modulesgave clients the ability to manage corporate funding andexport documentation online, with enhanced flexibility.Complementing the new services, we organised forclients the annual Shared Services Centre forum and anindustry forum for the consumer sector. A clienteducation series for transaction banking was run at Citi’soffices in Kuala Lumpur, Penang and Johor Bahru formore than 300 clients.We were also proud to celebrate industry recognition

CEO’sStatementwith some of our corporate clients based on their use ofCiti services. The Adam Smith award for Best CardSolution in Asia Pacific was won by Sime Darby, aCitibank corporate card client in Malaysia. Four clientswere recognised in the MyClear Direct Debit TopMerchants category namely AIA Berhad, BMW Credit (M)Sdn. Bhd., Toyota Capital (M) Sdn. Bhd., and AXA AffinLife Insurance Berhad.support programme and partnered Think City, an entityof Khazanah Nasional, to do an urban community projectin Georgetown, Penang for Global Community Day. Theresponse from the municipal council, Citibank volunteersand locals was encouraging. We also added The EdgeEducation Foundation as a new partner to our grantsprogramme covering youth economic opportunities inthe Klang Valley.Securities ServicesCiti’s Securities Services achieved a successful year withyear-on-year growth in Asset Under Custody (AUC) andtransaction volume on the back of additional mandatesfrom new and existing clients.Our Citi Foundation grant of RM734,265 in 2014 waschannelled to our citizenship partners for the FinancialEducation Policy Initiative and Pre-School EducationProgramme by Education & Research Association forConsumers (ERA Consumer) Malaysia and the “Money &Me” Youth Financial Empowerment Programme by theEdge Education Foundation.We were voted “Global Outperformer”, “MarketOutperformer” and “Category Outperformer” in the2014 Global Custodian Agent Banks in Emerging MarketsSurvey, demonstrating Citi’s significant service strengthsin the industry.Global MarketsCiti in Malaysia was voted best foreign exchange (FX)provider for overall FX services corporates in Malaysia inthe Asiamoney industry poll in 2014. Citigroup won thetop spot in overall results for the 2014 Euromoney FXsurvey.Islamic Banking DivisionIt has been another year of transition and adjustmentfollowing the coming into force of the Financial ServicesAct 2013 (FSA) and the Islamic Financial Services Act2013 (IFSA) in 2013. We participated actively in varioustransitional programmes organised by Bank NegaraMalaysia to ensure industry players are keptwell-informed of updates and progress relating to theimplementation of the FSA and the IFSA.Citi Transaction Services continued to record growth incross-border Shariah compliant services with funds ofmore than RM2.65 billion under management for clientsacross Citi branches in Asia and Europe. These servicessupport Islamic investments offshore and multinationaltreasury management centres in Malaysia.Working For and In CommunityCiti’s citizenship initiatives in Malaysia have in the last 10years focused primarily on financial education. Ourprogrammes are implemented through grants from CitiFoundation. In 2014, we made a deliberate strategicmove to diversify our citizenship focus to also coverurban transformation. We carried out a pilot urbanCiti’s integration into the world community signifies ourcommitment to reach out into the communities weserve. In 2014, more than 1,200 Citi volunteers joinedother Citi employees worldwide for Global CommunityDay on June 7, 2014. The theme “Serving My City” sawCiti volunteers plant mangrove saplings to supportenvironment conservation in Selangor, redevelopment ofa small park in the heart of Johor Bahru, cleaning a riverin Pahang and a community environment project in Penang.Our PeopleThe work that we do here at Citi in Malaysia would not bepossible without the strength of a diverse and skilledtalent pool.At Citibank, we value our employees and have a consistentapproach to training and development across the company.This gives us a unified culture and set of standards whichtranscend business and product lines. The global natureof our business also provides our employees withmobility opportunities to be located across our networkto gain international banking experience.Equal opportunity based on merit, mutual respect andsupporting workforce diversity is important to us. Weare constantly identifying top banking talent and takepride that we have trained over the years a number ofsenior banking professionals in the country.Key Priorities for 2015In my first dialogue with employees in November 2014, Ishared with all Citibankers our aspiration to be a worldclass franchise and the best bank in Malaysia. We willexecute this through four main pillars covering People,C I TI B A N K B E R H A DANNUAL REPORT 201409

CEO’sStatementClients, Controls and Relationships. Our aim is to be atrusted advisor to clients and to be the employer of choice.Our business priorities focus on harnessing the power ofour global network, delivering remarkable customerexperience and consistent, high quality earnings. Ourcode of conduct calls for the highest standards of ethicsand business integrity. These are aligned to our cultureof Responsible Finance and to protect at all times thereputation of our over 200-year-old institution.Outlook for 2015We approach 2015 with cautious optimism. There areglobal economic realities that cannot be ignored. Theoperating environment is likely to remain challenginginto 2015 amid slower economic growth, furthermoderation in consumer demand amid higher inflationpost-GST, and rising funding costs amid tighter liquidity.Citi has been here in this market for over 50 years. Weare a strong franchise enriched by local marketknowledge and capabilities. We face the year ahead withconfidence, guided by our wealth of past experience andthe courage to do the right thing.I would like to take this opportunity to thank ourChairman and Board of Directors, my senior colleagues,all employees in Malaysia, our partners and regulatoryauthorities for their support during the financial year.Adapting swiftly in an environment that is beingconstantly reshaped by innovation and technology callsfor bold and responsible leadership. We need to makethat difference in the market place. I know that we will.Lee Lung NienChief Executive OfficerSources:Malaysian Institute of Economic Research (MIER) 2014Bank Negara MalaysiaWorld Bank Report 2014C I T I BA NK BERHA DANNUAL REPORT 201410

Equal opportunitybased on merit,mutual respect andsupporting diversityis important to us.C I TI B A N K B E R H A DAANNNNUUAALL RREEPPOORRTT 220011 41111

Standing fromleft to rightC I T I BA NK BERHA DMr. Lee Lung Nien , Dato’ Dr. R. Thillainathan,Mr. Terence Cuddyre, Ms. Agnes Liew Yun ChongANNUAL REPORT 201412

Board ofDirectorsDato’ Siow Kim Lun, Datuk Ali Bin Tan Sri Abdul KadirCompany Secretary: Ms. Tang Wan Chee, Ms. Ho Li ChinC I TI B A N K B E R H A DStanding fromleft to rightANNUAL REPORT 201413

Directors’ProfileMr. Terence Cuddyre is Chairman of the Board. He joinedthe Board on 14 December 2010 as a Non-IndependentNon-Executive Director. He serves on the Audit Committee andRisk Management Committee of the Bank.He was Citigroup Country Officer for Brunei Darussalam fromJuly 2009 to December 2014. Prior to that, he spent fouryears as Asia Pacific Head of Training for the Citi Centre forAdvanced Learning. He also served as Citigroup’s CountryOfficer for Thailand from 2002 to 2005. He was the North AsiaRegional Risk Officer from 2000 to 2001.Mr. Cuddyre joined Citigroup in 2000 after 23 years with Bankof America where he held numerous international rolesincluding Country Head of Ireland, Korea, Hong Kong and China.He also held several risk positions in North America and Asia.He was also active in the American Chamber of Commerce,serving on the boards in Hong Kong, Korea and China. InThailand, he served as the Chairman.Mr. Cuddyre holds a B.A. in Economics from the University ofCalifornia, Santa Barbara and an MBA from the WhartonBusiness School, University of Pennsylvania.Mr. Lee Lung Nien was appointed Chief Executive Officer ofCitibank Berhad in October, 2014.He is a veteran Citibanker with 25 years of experience. Prior to hiscurrent appointment, Lung was the AML Business Head for Asiaand had senior oversight of the AML monitoring hub in KualaLumpur. He was responsible for streamlining the AML businessprocesses regionally, implementing policy changes and managingglobal AML implementations. He was also the primary AMLContact with Business Leadership, and tasked with implementingglobally consistent AML initiatives to enhance controls andmitigate AML risk. Together with Compliance, he developed aregional AML strategy for Asia Pacific.In 2010, Lung was the Chief Operating Officer (“COO”) forSingapore where he was responsible for driving the Bank’sbusiness results, implementing the country’s strategy, developingthe bank’s talent pool and executing various cost franchiseinitiatives. In addition to his role as COO, Lung was also theSingapore Markets Manager and worked closely with Singaporeregulators to coordinate compliance and regulatory processes forthe Citi Singapore dealing room.Lung was the Co-Head of Corporate Sales & Structuring for AsiaPacific in 2007. He was responsible for all foreign exchange,options and derivatives sales to corporate and institutional clientsin the region. He started his career as a Credit Analyst in the Bankand has held various key positions including Head of SingaporeTreasury Marketing, Sales and Trading Head for Malaysia andRegional e-Commerce Head.He graduated with a Bachelor of Business Administration, MagnaCum Laude from Chaminade University, USA.C I T I BA NK BERHA DANNUAL REPORT 201414

Directors’ProfileMs. Agnes Liew Yun Chong was appointed as Non-IndependentNon-Executive Director of the Bank on 1 November, 2010. She is alsoa member of the Risk Management Committee and NominatingCommittee of Citibank Berhad.Ms. Liew also sits on the board of Citibank (China) Co. Ltd.Since 2010, Ms Liew has been the Asia Pacific Head of GlobalCorporate Banking. The Asia Pacific Corporate Bank is the coverageorganisation that delivers the full spectrum of product solutions andCiti's extensive global network which spans over 100 countries, toinstitutional clients across 16 markets in Asia, including large publicand private corporations. She is also a member of the GlobalCorporate Banking Operating Committee (NY) and chairs the AsiaPacific Corporate Banking Operating Committee.Ms. Liew joined Citi as a Management Associate in 1982 and duringher career with Citi, has held a number of diverse key managementpositions in Risk and Banking in Asia Pacific. Between 2000 and2003, she was the Corporate Bank Head of Singapore. In 2003, shewas appointed Country Risk Manager of the Corporate andInvestment Bank, Citi Taiwan. She subsequently moved into theRegional Risk Management Office in Asia Pacific and assumed therole of Head of Risk, ASEAN, Corporate and Investment Bank in 2005.Between 2007 and 2010, Ms. Liew led Global Subsidiaries Group inAsia Pacific and was responsible for the relationship coverage ofglobal multinational subsidiaries across 16 markets. Under herleadership, the Global Subsidiaries Group in Asia grew to be asignificant pillar of the Global Banking franchise. During that time,she was also the Global Banking Head of ASEAN (ex Singapore),responsible for the relationship coverage of large corporate clients,including financial institutions.Ms. Liew was named by Finance Asia in 2011 as one of the Top 20Women in Finance in Asia.She holds an LL.B (Hons) from the University of Singapore and is amember of the Supreme Court of Singapore.Dato’ Siow Kim Lun is currently a board member ofKumpulan Wang Persaraan, UMW Holdings Berhad, EitaResources Berhad, Hong Leong Assurance Berhad, Eco WorldInternational Berhad, Sunway Construction Group Berhad andMainStreet Advisers Sdn. Bhd. He is also a member of theLand Public Transport Commission.From 1993 to 2006, Dato’ Siow was with the SecuritiesCommission (“SC”), where he has served as the Director of itsIssues and Investment Division and Director of its MarketSupervision Division. Prior to joining the SC, Dato’ Siowworked in the investment banking and financial servicesindustry in Malaysia for over 12 years.Dato’ Siow holds an MBA from the Catholic University ofLeuven, Belgium and a Bachelor of Economics (Hons) fromthe National University of Malaysia. He has also attended theAdvanced Management Program at Harvard Business School.Dato’ Siow has been a director of Citibank Berhad since April2007. He is currently the Chairman of the Bank‘s RiskManagement Committee, and a member of the NominatingCommittee and Audit Committee.C I TI B A N K B E R H A DANNUAL REPORT 201415

Directors’ProfileDato’ Dr. R. Thillainathan was appointed to theBoard on 6 September 2012 as an IndependentNon-Executive Director. He is the Chairman of the AuditCommittee, and Nominating Committee and a memberof the Risk Management Committee.He sits on the Boards of Genting Berhad, AllianzGeneral Insurance Company (Malaysia) Berhad, AllianzLife Insurance Malaysia Berhad, Allianz Malaysia Berhadand Asia Capital Reinsurance Malaysia Sdn Bhd. He isalso a board member of Private Pension AdministratorMalaysia, Wawasan Open University Sdn Bhd, UMHoldings Sdn Bhd and UM Plantations Sdn Bhd.He has been with the Genting Group since 1989. He wasthe Chief Operating Officer of the company from 2002to 2006 and retired as an Executive Director in 2007.Dato’ Dr. R. Thillainathan has extensive years ofexperience in finance and banking and has beenactively involved in numerous professional and nationalbodies. He was also the past president of the MalaysianEconomic Association.He graduated from University of Malaya in 1968 andholds a Bachelor of Arts Degree with First Class inEconomics. He obtained his Masters and PhD inEconomics from the London School of Economics. He isalso a Fellow of the Institute of Bankers, Malaysia.Datuk Ali bin Tan Sri Abdul Kadir was appointed to the Boardon 6 May 2014 as an Independent Non-Executive Director of CitibankBhd. Datuk Ali is a member of the Audit Committee, RiskManagement Committee and Nominating Committee of the Bank.He is a Fellow of the Institute of Chartered Accountants in Englandand Wales ("ICAEW"), member of the Malaysian Institute of CertifiedPublic Accountants and the Malaysian Institute of Accountants. He isalso currently Honorary Advisor to ICAEW Malaysia, Honorary Fellowof the Institute of Chartered Secretaries & Administrators (UK) andthe Malaysian Institute of Directors. Datuk Ali is currently theChairman of Jobstreet Corporation Berhad, Privasia TechnologyBerhad and the Financial Reporting Foundation. He is a BoardMember of Glomac Berhad, and Labuan Financial Services Authority.Datuk Ali was appointed as Chairman of the Securities Commissionof Malaysia on 1 March 1999 and served in that capacity until 29February 2004. He also served on the Foreign InvestmentCommittee, and the Oversight Committee of National AssetManagement Company (Danaharta). Prior to his appointment to theSecurities Commission, he was the Executive Chairman and Partnerof Ernst & Young and its related firms. He was also the formerPresident of the Malaysian Association (now Institute) of CertifiedPublic Accountants, chairing both its Executive Committee andInsolvency Practices Committee and co-chairing the Company LawForum. He was a member of the Malaysian Audit Oversight Board.He was appointed as an Adjunct Professor in the Accounting andBusiness Faculty, University of Malaya in 2008 and retired in August2011. He was then appointed to the Advisory Board of the same Faculty.On the international front, Datuk Ali was the Chairman of theInternational Organisation of Securities Commissions’ (“IOSCO”)Asia Pacific Regional Committee and the Islamic Capital MarketWorking Group, and a member of IOSCO’s Executive Committee. Inaddition, he was also a Trustee of the Accounting and AuditingOrganisation for Islamic Financial Institutions and Force of NatureAid Foundation; and the Advisor to the Sri Lanka Securities andExchange Commission in 2006 for their Capital Market Strategic Plan.C I T I BA NK BERHA DANNUAL REPORT 201416

Corporate CitizenshipAt CitiWhen people make progress, so does Citi. That’s why at Citi, we dedicate much of our creativity and innovationto expanding financial inclusion around the world. We have a long and successful history of introducingmainstream financial services to under-banked people, supporting small businesses and entrepreneurs andstimulating local economies through microfinance and affordable housing.In fact, one of the main Citizenship efforts is to promote financial inclusion and economic progress. Here, welook to provide financial opportunities, access, knowledge and support for the underserved communities andindividuals worldwide.As a financial institution and a group, we embrace the challenge to help reach the 2.5 billion people in the worldwith no access to financial services.In Malaysia, a large aspect of our corporate citizenship focuses on helping consumers build their own financialcapability by pairing financial education with access to appropriate products and services so they can save,wisely manage their money and weather setbacks.In 2014, we received a RM734,265 grant from Citi Foundation and worked with partners to support programmesthat help people take control of their finances by improving their financial behaviours and making informeddecisions about financial products and services.C I TI B A N K B E R H A DANNUAL REPORT 201417

Corporate CitizenshipAt CitiFinancial Education Policy Initiative &Pre-School Education Programme –Education and Research Association ofConsumers (ERA Consumer)In 2014, ERA Consumer received a RM384,615 grant fromCiti Foundation which was utilised for: Setting the baseline data on the state of the currentfinancial knowledge, habits and be

Performance Review The Bank recorded pre-tax profit of RM703 million for the financial year ended December 31, 2014. . wealth management. In Malaysia, Citi is the top foreign owned bank for Corpo