Citigroup,one of the world's largest financial institutions,claims it is making good progress towards recovery.CEO Vikram Pandit,in a letter to shareholders,summed up recent events,saying the company has been reorganized to best make use of its strengths.Citicorp focuses on providing best-in-class products and services to grow the franchise profitably,reduce volatility,and take advantage of its competitive advantages in more than 100 countries.We are making excellent progress divesting and exiting businesses from Citi Holdings,the non-core assets,Mr.Pandit indicates.We have significantly reduced our expenses and risk.Our balance sheet has been reduced by 25%.Our cost structure is also down by one quarter.We have also reduced our risky asset categories significantly.Our direct subprime exposure is down 65% year-over-year and highly leveraged financial commitments are down 75% year-over-year.
We still have a lot of work to do,Mr.Pandit admits,but we are continuing to build on the progress made in the past 18 months by focusing on our strategic priorities.We remain focused on managing costs and maintaining positive operating leverage and generating long-term profitability and growth from Citicorp,which comprises our core franchise,to benefit you,our shareholders,Vikram Pandit concluded.A reverse stock split may occur by June 30,2010,which means that several shares of Citigroup would be combined to form fewer,more highly-priced shares.The ratio of the split has not been determined yet.
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