Dear Fellow Shareholders:

2016 was an eventful year for our company, our country and the world. As the year progressed from a first half defined by economic anxiety and volatility to a second half impacted by a series of political upsets and surprises, we demonstrated the power and resilience of Citi’s unique global franchise by helping our millions of customers and clients around the world navigate an environment far more challenging than anticipated.

The nearly $15 billion in net income we earned in 2016 is a reflection of the momentum we built across many of our core businesses while continuing to make the investments necessary for future growth. Among the many milestones we marked on the road to achieving our ultimate goal of being an indisputably strong and stable institution, I'd like to highlight the following:

In our Global Consumer Bank, we continued to focus our footprint with the announcement of plans to divest our retail banking and credit card businesses in Argentina, Brazil and Colombia, strategic decisions that enable us to consolidate our finite resources on our three major consumer markets: the U.S., Mexico and Asia. In the U.S., we converted 11 million Costco customers to our platform over a weekend in June while adding an additional 1 million new cardholders in the next six months. We also extended our nearly three-decade-long relationship with American Airlines and renewed an important partnership with The Home Depot.

In Mexico, where we enjoy scale and a strong market position, we rebranded our franchise Citibanamex and embarked on a multi-year $1 billion investment program that includes the modernization of our branches and upgrades to our technology. This investment reaffirms our long-standing commitment to our North American neighbor, and our continued confidence in its growth prospects.

We also made progress meeting the evolving needs of our customers by massively accelerating our mobile-first digital strategy. Our newly formed Citi FinTech unit spearheaded the first mobile app that combines banking, wealth management and money movement for our Citigold clients. And in Asia, we entered into promising partnerships with ride-hailing platform Grab, hospitality pioneer Airbnb and Lazada Group, a leading online shopping and selling site.

In our Institutional Clients Group, revenues rose 10 percent for the year in Fixed Income and Equities, while our industry-leading Treasury and Trade Solutions (TTS) business, the largest proprietary closed-loop mover of money in the world, generated year-over-year revenue and margin growth for the 12th consecutive quarter. Our #1 ranking in the influential Greenwich Associates' Annual Survey for Global Fixed Income Market Share further confirmed that Citi has gained more market share in FICC than any of our competitors worldwide, and that our market shares in fixed-income and equities have risen to their highest point since the crisis.

We distinguished ourselves by advising on 10 transactions worth $140 billion in market value in a single week. These included advising Time Warner on its $108 billion transaction with AT&T, B/E Aerospace on its $8 billion sale to Rockwell Collins, TD Ameritrade on its $4 billion acquisition of Scottrade Financial Services and seven significant others. Over the course of the year, our bankers also served as advisors on other landmark transactions including to Dell and Silver Lake Partners on the $67 billion acquisition of EMC and to Baxalta on its $32 billion acquisition by Shire. Being named Bank of the Year for 2016 by International Financing Review recognized our position as an industry leader.

We also continued to make progress in our journey toward being a simpler, smaller, safer and stronger institution.

With the non-core assets in Citi Holdings down to just 3 percent of Citigroup's balance sheet, we no longer will report Holdings results separately. At its peak, Holdings had more than $800 billion in assets and was capable of producing multi-billion dollar losses in a single quarter. In contrast, its last quarter of results was its 10th straight with a profit, and we remain committed to keeping the portfolio at a breakeven level or better. Significantly, we were the only one of eight U.S. banks found by the Federal Deposit Insurance Corporation and the Federal Reserve to have no deficiencies in our Resolution and Recovery Plan.

And we meaningfully increased the amount of capital we return to our shareholders. In 2016, we returned nearly $11 billion in capital to you, and - combined with the announcement of an incremental increase of $1.8 billion we made in November - we raised our total capital return for the 2016 Comprehensive Capital Analysis and Review cycle to $12.2 billion. To put that figure in context, that’s nearly 10 times the $1.3 billion in capital we returned just two years ago.

We returned this capital through a larger dividend and buybacks, which reduced the number of common shares outstanding by 181 million, or 6 percent, and increased our Tangible Book Value per share by 7 percent to $64.57.

Even after returning that capital, we ended the year with a Common Equity Tier 1 Ratio of 12.6 percent, 50 basis points higher than when we started the year. And with a Supplementary Leverage Ratio of 7.2 percent, both ratios exceed regulatory requirements and show we have capacity to continue to increase the amount of capital we return.

All these milestones and achievements underscore what might easily constitute our boldest headline of the year: Our restructuring is over. Today, Citi has returned to its roots with two core businesses appropriately scaled to serve customers and clients who benefit from our global network and footprint.

With a revenue base balanced across products and regions - firmly supported by a business model that would be difficult, if not impossible, to replicate in today's environment - our unique and resilient global franchise is not only well-suited to meeting the needs of our customers and clients around the world but is also, importantly, beginning to produce the capital returns our investors expect and deserve.

Despite these accomplishments and our ongoing success, however, we recognize that with respect to the goals and targets we set for ourselves, our performance last year fell short. Specifically, our core Citicorp net income dropped from $16.3 billion in 2015 to $14.3 billion last year; our Citigroup Efficiency Ratio rose to 59 percent in 2016 from 57 percent in 2015; our Return on Assets decreased from 95 basis points in 2015 to 82 basis points last year; and our Return on Tangible Common Equity (ROTCE) dropped from 9.3 percent in 2015 to 7.6 percent last year.

Why? First, early last year, despite the volatility in the markets, we decided to push ahead with our plans to invest in Cards, Equities, Mexico, TTS, Citigold, and much-needed infrastructure and technology across the franchise. We also saw expected smaller gains on asset sales in Citi Holdings, which further reduced our top-line results.

All that aside, we do have a clear path to producing those better returns you have every reason to expect and deserve. That path primarily relies on drivers that are within our control:

First, our raw earnings power, which consists of continuing to drive client engagement, continuing to grow wallet share, continuing to monetize the investments we’ve made in our franchise, and continuing to improve our efficiency through simplification, digitization and expense discipline.

Second, our capital base optimization, which consists of continuing to wind down our non-core assets, continuing to utilize our Deferred Tax Assets (DTA) while reducing the amount of capital we need to support them, and seeking to return as much regulatory capital to shareholders as we possibly can above the amount needed to prudently operate and invest in our businesses.

Third, our operating environment, including the expected upward trajectory of the Federal Funds Rate.

We believe that strong execution against all three drivers will place our updated financial targets firmly within reach, including: a 10 percent ROTCE excluding our disallowed Deferred Tax Assets in 2018; and a 10 percent ROTCE including our DTA in 2019. Longer term, we believe Citi is capable of generating a 14% ROTCE.

While expectations for growth have gained conviction since the election of Donald J. Trump as U.S. president, some have questioned whether our globality is a vulnerability in the current political environment. To the contrary, we see it as an advantage. Trade policy and agreements may take different forms and reflect different priorities, but trade isn’t going away. And our network is uniquely situated to helping our clients - many of whom are U.S. and non-U.S. multinationals we serve in dozens of countries - navigate these changes, whether through supply chain optimization, our advisory capabilities or trade finance.

Citigroup - Key Capital Metrics

Our confidence is rooted in a deep conviction that at Citi, we have the right model, the right strategy, the right customers and clients, and the right people in the right places to meet our updated targets.

It's also clear that to fulfill our promise and potential to be the world's best global bank, we must continue to demonstrate that we provide not just economic value to our clients and customers but social value to communities around the world.

We are ahead of schedule in fulfilling our 10-year, $100 billion Sustainable Progress Initiative, dedicated to financing solutions that produce lower carbon emissions to safeguard our environment and natural resources.

And in 2016, we increased our lending to small businesses in the U.S. to more than $11 billion, raising our total over the last five years to nearly $50 billion. Once again, we were the leading financer of affordable housing in the U.S., as had been the case for seven years in a row.

We recently announced the global expansion of the Citi Foundation's pioneering Pathways to Progress initiative - which last year achieved its initial goal of connecting 100,000 people in 10 U.S. cities to better skills, better jobs and better career opportunities - from a purely domestic initiative into a major $100 million investment to connect 500,000 young people inside and outside the U.S. to training and jobs over the next three years. It's the largest philanthropic commitment in our over 200-year history.

I can honestly say that no day of the year makes me feel better about working at and leading this company than when I take part in our annual Global Community Day, which we celebrated for the 11th time last year. On that day in June, 85,000 Citi volunteers, often accompanied by friends and family, took part in volunteer projects in more than 500 cities located in over 90 countries.

2016 Citicorp Net Revenues¹

Every year, as I spend the day working on a project standing beside my friends, family and colleagues - and their friends, families and colleagues - I am reminded that our ultimate success as a company can only be measured with respect to a metric that can't be expressed numerically.

In my fifth year as Citi's leader, I couldn’t be prouder or happier to work for a company that so consistently goes to such extraordinary lengths to fulfill its Mission and Value Proposition of responsibly providing financial services that enable growth and economic progress. A decade after the financial crisis, I'm happy to report to you that we are now in a position to scale new heights. And I'm very grateful to all of you for supporting us on this journey.

Sincerely,

Michael L. Corbat
Chief Executive Officer, Citigroup Inc.

Citi's Global Consumer Bank (GCB), a global leader in credit cards, wealth management and commercial banking, serves as a trusted partner to more than 110 million customers in 19 countries worldwide, providing financial services that enable growth and economic progress.

The Global Consumer Bank operates four business lines - Branded Cards, Retail Services, Retail Banking and Commercial Banking - in three priority markets: Asia, Mexico and the U.S.

Over the past few years, our business has transformed to become a simpler, leaner, focused franchise. In 2016, GCB continued to perform, building on the foundation for growth set in 2015.

We further streamlined our GCB footprint with the announced exit from Argentina, Brazil and Colombia to focus on markets where we have the greatest opportunity for growth. Resizing of our retail branch footprint continued, creating a lean, digitally forward, urban network with an outsized share of U.S. deposits and improving efficiency. Distinctive wealth management value propositions were introduced in the U.S. and refreshed in Asia to drive differentiation and share of the wealth wallet of affluent clients. And strategic investments were made - in Mexico, U.S. Cards, technology and a trifecta of U.S. credit card partnerships (Costco, American Airlines and The Home Depot) - to drive growth into the next decade.

The journey to becoming a world-class digital bank tangibly accelerated. A mobile-first strategic focus and deployment of a new, agile operating model fostered massive improvements in the design and delivery of digital features and in the customer experience. The implementation of a uniform technology platform was completed, and the franchise saw significant growth in the number of digital users, mobile downloads and digital engagement. We forged a number of digital payments solutions and partnerships to deliver scale, convenience and ease. And Citi FinTech, a new unit charged with developing next-generation mobile banking capabilities through cocreation with clients, delivered a new set of mobile features in the U.S., making Citi the first global bank to integrate banking, money movement and wealth management on mobile.

GCB operated approximately 2,650 branches and generated $7.8 billion in pretax earnings, representing 37 percent of Citicorp's total. In 2016, our GCB business held $300 billion in average deposits, managed $139 billion in average assets and included $280 billion in average loans.

Credit Cards

As the world's largest credit card issuer, we are an undisputed industry leader, with more than 140 million accounts, $421 billion in annual purchase sales and $140 billion in average receivables across Citi Branded Cards and Citi Retail Services.

Citi Branded Cards

Citi Branded Cards provides payment and credit solutions to consumers and small businesses, with 55 million accounts globally. In 2016, our Citi Branded Cards business generated annual purchase sales of $341 billion and had an average loan portfolio of $96 billion.

With a simplified, standardized and revitalized global products portfolio, Citi Branded Cards intensified its focus on growth.

In the U.S., we completed the acquisition and conversion of Costco's co-brand credit card portfolio and launched the Costco Anywhere Visa Card by Citi. With an enhanced value proposition, the card launched to tremendous demand, with more than 1 million new accounts in six months. We also extended our nearly threedecade-long relationship with American Airlines, the world's largest airline, to continue offering our lineup of cards to new customers through multiple exclusive channels.

Internationally, we signed a credit card partnership with Coles, a leading national supermarket chain in Australia, and continued the rollout of globally common, competitive products. The Citi PrestigeSM card, offering affluent customers a common set of global benefits and experiences, launched in China, and Citi SimplicitySM, a card for value-focused customers, launched in Indonesia and Malaysia. All markets now have at least one globally common card product.

In 2016, we improved digital servicing by focusing on foundational experiences and launching new features faster than ever before. In the U.S., a slew of new digital features were introduced, including Citi^® Quick Lock, enabling cardmembers to lock and unlock their card, the ability to track a replacement card and the ability to file a dispute in app, a first for a major U.S. credit card issuer.

Our business made notable strides digitizing key components of the mobile payments experience to drive growth going forward. We announced our own payments solution that provides customers with a simple and fast option for online, in-app and in-store payment needs, which was introduced in Australia and Singapore. In 2016, we became the first global bank to announce a partnership with PayPal to tokenize cards for customers wanting to use PayPal for in-store purchases across Mastercard and Visa portfolios in the U.S.

In Asia, we extended our global partnership with Samsung Pay and secured strategic agreements with the region's leading digital companies and social media platforms, integrating our services into the digital ecosystems clients use most, to deliver value, convenience and speed.

We continued the global expansion of our rewards program ThankYou^® Rewards to new markets, including Mexico, Taiwan and the United Arab Emirates. The platform now covers markets representing more than 90 percent of Citi's cards revenue base. The program also announced new relationships with Best Buy, Expedia, Wonder and 1-800-Flowers.com and added JetBlue as a new points transfer partner to provide customers with even more ways to use their points how, and when, they want.

Through relationships with legendary artists and bands, our award-winning entertainment access program Citi^® Private Pass^® worked with more than 1,500 artists to offer unmatched access and VIP experiences to our customers in the U.S. and in 14 countries globally. In addition, we secured an exclusive partnership with Live Nation in Singapore, Taiwan, Thailand and Hong Kong, further expanding the program's international footprint.

Retail Services

Citi Retail Services is one of North America's largest providers of private label and co-brand credit cards for retailers. In addition, we deliver multichannel retailing expertise, advanced data analytics and digital solutions to help premier retailers across an array of industries grow their businesses. We serve 88 million accounts for iconic brands such as Best Buy, Exxon and Mobil, Macy's, Sears, Shell and The Home Depot.

In 2016, Citi Retail Services renewed its long-term credit card agreement with The Home Depot, one of the most successful private label card programs in the retail industry, securing all of its significant partnerships through 2020 or beyond. We also renewed our relationship with Ford Motor Company, Monro Muffler Brake, Inc. and TBC Corporation and entered the power equipment space by signing new partnerships with BRP, Kawasaki and The Toro Company. Additionally, we expanded loyalty offerings to Sears Mastercard customers through the integration of ThankYou Rewards, Citi's pre-eminent rewards program offering, and the significant enhancement of point-earning opportunities for Shop Your Way Mastercard customers.

In 2016, Citi Retail Services saw purchase sales of $80 billion and a loan portfolio ending the year at $47 billion.

Retail Banking

Citibank meets the full range of consumer banking needs, including checking and savings accounts, loans, wealth management advice and small business services. Our distinctive Citi Smart Banking branch design and experience, tailored offerings and worldclass service continue to set us apart from peers.

The American Customer Satisfaction Index named Citi the #1 National Bank in the U.S., while Global Finance named Citi the #1 Digital Bank in Asia for the second consecutive year.

Through Citigold^® and Citigold Private Client, we provide industry-leading, personalized wealth management services and a host of top-tier benefits to clients around the globe. In 2016, we introduced sweeping enhancements to our retail bank and investment offerings to meet clients' evolving financial needs and to align our distinctive global offerings. In addition, Citigold Client Centers opened in London, New York, Moscow, Seoul and St. Petersburg, each setting the standard in convenience, service, design and comfort.

In Asia, we continue to differentiate our value proposition across segments. Citi Priority, the emerging affluent value proposition, is now live in 13 markets with a new digital welcome experience and a range of preferred benefits and personalized services. Citigold was relaunched in five markets. This included new tools such as Total Wealth Advisor, which uses sophisticated models for financial planning based on Citi's global expertise in private banking and institutional markets, and the introduction of the Citigold Diversification Index, an internally designed framework to measure a client's portfolio diversification.

In the U.S., an enhanced, best-in-class Citigold experience was launched to offer clients a personalized, tailored level of service, exclusive benefits and the world-class investment capabilities of Citi Personal Wealth Management. At the same time, Citi Priority, a new value proposition for emerging affluent clients that includes on-demand financial guidance, digital tools and an improved level of benefits, was introduced. Together, they meaningfully improve our competitiveness in wealth management. We also joined Early Warning's clearXchange^® network in the U.S., which will enable our banking customers to send or receive real-time person-to-person (P2P) payments to or from customers of participating network banks.

Across the U.S., we continued to support the growth of small businesses, helping them create jobs and real economic value in their communities. More than $11 billion in loans were originated in 2016, raising the total amount of U.S. small business lending over the past five years to $49 billion.

CitiMortgage, which provides loans for home purchase and refinance transactions in the U.S., originated $24 billion in new loans in 2016. Our mortgage business continued to focus on client relationships by targeting originations within our U.S. retail bank footprint and improving the client experience.

In Mexico, Citibanamex announced meaningful investments, including new "Smart" branches, 2,500 nextgeneration ATMs, and technology platforms and infrastructure, reflecting the significant growth opportunity we see in the market. This year, 20 new branches were opened, 1,000 new ATMs were installed, and Citi Priority and Citibusiness^® were introduced.

Commercial Banking

Citi Commercial Banking provides global banking capabilities and services to mid-sized, trade-oriented companies in more than 100 cities worldwide. As many of these clients expand internationally, we help enable their growth and ability to access capital across multiple countries, one of our core activities. In 2016, client satisfaction reached an all-time high, and our Commercial Banking business continued to deliver enhanced digital services to clients.

Citi's Institutional Clients Group (ICG) enables progress by providing large multinational corporations, public sector entities, ultra-high-net-worth households and investment managers with wholesale banking products and services via an unmatched geographic breadth and product depth.

We are a trusted partner, supporting innovation and growth globally for corporate clients through Citi's network in 97 countries and providing lending, cash management and advisory services that help them to conduct daily operations, to hire, to grow and to succeed. In the public sector, we help build sustainable infrastructure, housing, transportation, schools and other vital public works for the future. With trading floors in more than 80 countries, clearing and custody networks in over 60 countries and connections with 400 clearing systems, we maintain one of the largest global financial infrastructures and facilitate approximately $4 trillion of flows daily. This is what enables us to serve our core clients with distinction.

ICG's work represents all of Citi's core activities of safeguarding assets, lending money, making payments and accessing the capital markets on behalf of our clients.

Capital Markets Origination

Citi’s Capital Markets Origination business is focused on the capitalraising needs of institutional clients, from inaugural issuances and exchanges to cross-border transactions and landmark structures. Owing to an unmatched global footprint and diverse range of financial products, we aim to be the first choice among issuers for clients' underwriting needs. Our track record of successfully executing in both buoyant and challenging market conditions is a testament to our unwavering commitment to provide the highest quality service to clients. Our structuring and execution expertise has established us as a leader in the equity capital markets, whether measured by innovation or proceeds raised, and has distinguished Citi as the clear choice for debt underwriting, with excellence across a broad range of currencies and markets. In 2016, Citi served as joint global coordinator on the Kingdom of Saudi Arabia’s multi-tranche $17.5 billion bond offering; as a bookrunner on Dell, Inc.’s $20 billion bond offering to finance its acquisition of EMC Corporation; as joint lead arranger and bookrunner for $12 billion of debt and equity financing for Molson Coors in relation to its acquisition of MillerCoors; as a joint global coordinator on Samsung BioLogics's $2 billion initial public offering; and as sole bookrunner on Ardagh Group’s $4.5 billion bond offering in part to fund the acquisition of Ball/Rexam divestiture assets.

Corporate and Investment Banking

Our Corporate and Investment Banking division provides comprehensive relationship coverage to ensure the best possible service and responsiveness to clients. With our strong banker presence in many nations, we use sector and product expertise to deliver global capabilities to clients wherever they choose to compete. Our client teams are organized by industry and country, composed of two parts: Strategic Coverage Officers focus on mergers and acquisitions and equity and related financing solutions, while Corporate Bankers - in partnership with Citi's Capital Markets specialists and with support from the Global Subsidiaries Group - deliver corporate banking and finance services to global, regional and local clients. By serving these companies, we help them grow, creating jobs and economic value at home and in communities worldwide.

We played a key role in some of 2016's most significant transactions, including financial advisor to Time Warner Cable on its agreement to be acquired by Charter Communications, Inc. for $79 billion and financial advisor to Dell, Inc. and Silver Lake Partners on its acquisition of EMC Corporation for $67 billion. We served as a financial advisor to Baxalta Inc. on its agreement to be acquired by Shire plc for approximately $32 billion.

Markets and Securities Services

Citi's Markets and Securities Services business provides financial products and services as diverse as the needs of the thousands of corporations, institutions, governments and investors that we serve. We work to enrich the relationships, products and technology that define our market-making presence. The breadth, depth and strength of our sales and trading, distribution and research capabilities span a broad range of asset classes, currencies, sectors and products, including equities, commodities, credit, futures, foreign exchange, emerging markets, G10 rates, municipals, prime finance and securitized markets. And our Investor Services and Direct Custody and Clearing businesses provide customized solutions that support the diverse investment and transaction strategies of investors and intermediaries worldwide.

Our ability to secure our clients' trust has earned us some significant recognition. Once again, we topped Greenwich Associates' Annual Survey for Global Fixed Income Market Share in Quality and have gained more market share than any other large dealer since 2008. We ranked #1 in Sales Quality, Trading Quality and e-Trading according to the survey, as well as #1 market share in Global Credit, G10 Rates, Emerging Markets Rates and Municipal Bonds. Citi Velocity^SM, which delivers electronic access to our global footprint, real-time information, and capital markets intelligence and services through web, mobile and trading applications, was used by 83,000 clients in 2016. In Equities, we rolled out OPTiMUS, Citi’s algo selector that leverages pattern recognition and machine learning to identify the best strategy for clients per unique order, as well as adding new features such as Total Touch ADR block trading.

Private Banking

Our 800 Private Bankers and product specialists, located in 48 offices in 16 countries, act as trusted advisors to many of the world's most successful and influential individuals and families. From our comprehensive platform of products and services, the Private Bank creates customized wealth management strategies for clients such as entrepreneurs and business owners, single- and multi-family offices, senior corporate executives, next-generation inheritors, law firms and attorneys. To grow, manage and preserve wealth in a thoughtful and holistic way, the Private Bank is committed to objective advice underpinned by a truly open architecture platform, complemented with access for clients to global capital markets, cash management and lending solutions, wealth advisory and trust services, and a premier level of client services and experiences.

A key differentiator for Citi Private Bank is our Global Client Program, which facilitates clients' growing global appetite for financial assets by leveraging our offices and capabilities worldwide. The program ensures that the client is served by a Private Banker and specialists in each region in a coordinated manner. This translates into tailored advice, competitive pricing and timely execution for their capital markets needs, as well as financing and refinancing in both commercial and residential real estate globally. Another important benefit is access to our Corporate and Investment Bank locally for their business activities in the respective regions.

Treasury and Trade Solutions

Our Treasury and Trade Solutions (TTS) business provides integrated cash management and trade finance services to multinational corporations, financial institutions and public sector organizations across the globe. With the industry's most comprehensive suite of digital-enabled platforms, tools and analytics, TTS leads the way in delivering innovative and tailored solutions to clients. Offerings include payments, receivables, liquidity management and investment services, working capital solutions, commercial card programs and trade finance. Based on the belief that client experience is the driver of sustainable differentiation, TTS has focused its efforts on transforming its business to deliver a seamless, end-to-end client experience through the development of its capabilities, client advocacy, network management and service delivery across the entire organization.

In 2016, TTS processed more than $1.8 trillion globally in client transaction value on CitiDirect BE^® Mobile and CitiDirect BE^® Tablet. This institutional e-banking platform was ranked #1 in Greenwich Associates’ Digital Banking Benchmarking study for the 11th consecutive year.

TTS launched eSubmit, an electronic document submission digital service that allows clients to complete the account opening process by returning electronic versions of documentation in select Western European countries. TTS also launched new working capital capabilities for clients, including enhancing the Global Concentration Engine (GCE) and Online Investments Portal (OLI). The GCE has reached a significant milestone with more than 50 countries/territories now live on its global liquidity network, providing clients with automated cash concentration services. The OLI portal, which processes over $50 billion in client transactions each month, has been upgraded with new features that provide clients with more options in managing their liquidity. These enhancements support our strategy of continued investment to deliver a broad set of liquidity management services that meet clients' changing needs.

Citi is focused on making positive financial and social impact through the breadth and depth of our core businesses and Citi and the Citi Foundation's philanthropic work. We embrace this responsibility to enable progress in communities in which we live and work and understand that the social and economic solutions our businesses and employees deliver on a community level directly affect our global economy.

By embedding citizenship into our core business, we leverage our scale and reach to enable growth and progress for society. But we also understand that success requires partnerships. We work with clients, non-governmental organizations (NGO), the public sector and other stakeholders to deepen our understanding and create innovative financial solutions and programs that promote financial inclusion and social mobility and advance economic development, environmental sustainability, human rights and other factors essential to a vibrant and resilient world.

Issues core to our Citizenship efforts include:

Jobs and the Next Generation

Globally, today's young people continue to face levels of unemployment that are double that of adults and in some communities three and four times higher. Additionally, as income inequality rises and competition within high-growth fields such as tech and healthcare intensify, competing in the 21st century job market requires new thinking around job training and leadership development. Through Pathways to Progress, Citi and the Citi Foundation are supporting the career readiness of young people around the world. In 2016, we achieved our goal of connecting 100,000 young people in the U.S. with programs designed to develop their entrepreneurial mindset, acquire leadership, financial and workplace skills and have the experience of a first job. More than 2,000 Citi employees play an integral role in the program, acting as volunteer mentors and coaches.

We are proud of these results, but our work is not done. We’re taking Pathways to Progress global and expanding our impact through a commitment by the Citi Foundation to invest $100 million in grants for leading youth-serving NGOs and engaging 10,000 employees through mentoring and other volunteer efforts. This is the largest commitment ever made by the Citi Foundation, and it is informed by long-standing partnerships with NGOs such as Junior Achievement Worldwide, TechnoServe and the Network for Teaching Entrepreneurship.

Citi for Cities

Citi has invested in cities since we were founded in 1812. As more people around the world move from rural to urban areas, we are expanding our work to help build thriving, inclusive communities.

True today as it was more than 200 years ago, cities encompass some of the greatest challenges and opportunities facing the world. The impact of global trends like increasing population pressure, a widening wealth gap and strained infrastructure is felt most acutely in urban centers. At the same time, the resources present in cities - knowledge, capital and diversity - are powerful tools for creating innovative solutions to these pressing issues.

Citi and the Citi Foundation work to make cities around the world stronger through financing and direct investment, as well as collaborations with public, private and NGO partners to build sustainable infrastructure, such as housing, transportation, schools and other vital public works.

Citi increased small business lending in the U.S. to more than $11 billion in 2016, raising lending over the last five years to nearly $50 billion. We financed over $5.7 billion in affordable housing projects in 2016, $1 billion more than we lent the previous year.

The Citi Foundation's City Accelerator program, in partnership with Living Cities, has worked directly with 12 municipalities in the U.S. to test new ways to drive sustainable growth while increasing economic opportunity for lower-income residents. For example, the city of Philadelphia tested the use of text messages and innovative marketing tactics to ensure that low-income seniors were signing up for subsidies offering a 25 percent reduction in their water bills. As a result of financial and technical assistance provided by City Accelerator, participation in the program doubled, and hundreds of Philadelphia's most vulnerable seniors are now receiving a discount that will make managing their household bills easier.

The city of San Francisco is using its City Accelerator support to develop a financing plan to reinforce the city's coastal seawall, which protects vital public transportation assets and land designated for affordable housing on a parcel adjacent to the Port of San Francisco.

Sustainable Progress

Citi continues to execute against our Sustainable Progress strategy, including our $100 billion Environmental Finance Goal, ambitious environmental footprint targets for our own operations and facilities, and a deepening commitment to environmental and social risk management.

Because of the strength of environmental finance markets and the ambitions of our clients, our financing of solutions to reduce the impact of climate change continues at an unprecedented pace. In the first three years of our goal, our annual volume of environmental finance activity totaled $23.6 billion in 2014, $47.6 billion in 2015 and $26.3 billion in 2016.

We have made notable progress toward our goal in just three years due to high demand in the environmental finance markets, including renewable energy finance and green bonds activity, and the ambitions of our clients. Although we are on track to achieve our goal in 2017, we plan to continue to challenge ourselves by redefining what completion means with the development of a new, more rigorous methodology moving forward that focuses on Citi's share of deals that are counted toward the goal rather than total deal value. These measures reflect both our commitment to addressing climate change through our business and a willingness to learn and adapt as the field of environmental finance continues to evolve.

Citigroup common stock is listed on the NYSE under the ticker symbol "C" and on the Mexico Stock Exchange. Citigroup preferred stock Series AA, C, J, K, L and S are also listed on the NYSE.

Because Citigroup's common stock is listed on the NYSE, the Chief Executive Officer is required to make an annual certification to the NYSE stating that he was not aware of any violation by Citigroup of the corporate governance listing standards of the NYSE. The annual certification to that effect was made to the NYSE on May 25, 2016.

As of January 31, 2017, Citigroup had approximately 77,787 common stockholders of record. This figure does not represent the actual number of beneficial owners of common stock because shares are frequently held in "street name" by securities dealers and others for the benefit of individual owners who may vote the shares.

Transfer Agent

Stockholder address changes and inquiries regarding stock transfers, dividend replacement, 1099-DIV reporting and lost securities for common and preferred stock should be directed to:

Computershare
P.O. Box 43078
Providence, RI 02940-3078
Telephone No. 781 575 4555
Toll-free No. 888 250 3985
E-mail address: shareholder@computershare.com
Web address: www.computershare.com/investor

Exchange Agent

Holders of Golden State Bancorp, Associates First Capital Corporation, Citicorp or Salomon Inc. common stock should arrange to exchange their certificates by contacting:

Computershare
P.O. Box 43078
Providence, RI 02940-3078
Telephone No. 781 575 4555
Toll-free No. 888 250 3985
E-mail address: shareholder@computershare.com
Web address: www.computershare.com/investor

On May 9, 2011, Citi effected a 1-for-10 reverse stock split. All Citi common stock certificates issued prior to that date must be exchanged for new certificates by contacting Computershare at the address noted above.

Citi's 2016 Form 10-K filed with the SEC, as well as other annual and quarterly reports, are available from Citi Document Services toll free at 877 936 2737 (outside the United States at 716 730 8055), by e-mailing a request to docserve@citi.com or by writing to:

Citi Document Services
540 Crosspoint Parkway
Getzville, NY 14068

Stockholder Inquiries

Information about Citi, including quarterly earnings releases and filings with the U.S. Securities and Exchange Commission, can be accessed via its website at www.citigroup.com. Stockholder inquiries can also be directed by e-mail to shareholderrelations@citi.com.

The cover and editorial section of this annual report are printed on McCoy, manufactured by Sappi North America with 10% PCW and FSC^® Chain of Custody Certified. 100% of the electricity used to manufacture McCoy is Green-e^® certified renewable energy.

The financial section of this annual report is printed on FSC^® certified Accent Opaque from International Paper. International Paper’s U.S. mills are certified to the FSC, PEFC and SFI^® Chain of Custody standards.

Citi, Citi and Arc Design and other marks used herein are service marks of Citigroup Inc. or its affiliates, used and registered throughout the world.

Apple, the Apple logo and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. Apple Watch and Apple Pay are trademarks of Apple Inc.