Citi announced that it has been selected to administer the U.S. Department of Defense Travel Card program. The program, the largest under the General Services Administration's umbrella SmartPay(R) 2 master contract, currently has 1.2 million cardholders accounting for 61% of government-wide travel spending in 2007.
"Citi and the Agencies of the U.S. Federal Government have a long-standing, successful relationship, and we look forward to delivering value to the Department of Defense," said Paul Galant, CEO, of Citi's Global Transaction Services division. "We are committed to our government clients and will dedicate the necessary resources, capabilities and service they need to achieve their strategic goals now and in the future," he added. Global Transaction Services, which includes Citi's Commercial Card business, is one of Citi's strongest businesses with revenues of more than $7 billion in 2007. It is the leading issuer of commercial cards globally with over 2.1 million accounts.
Citi will immediately begin working with the Defense Travel Management Office (DTMO) and the DOD Service Commands to implement a program customized to meet their requirements, as well as to plan for an effective and smooth transition from the previous provider. The DTMO was established in 2006 to serve as the central point of contact for commercial travel within the DOD. It is responsible for establishing strategic direction and managing all commercial travel programs, including the travel card program. The new official travel cards will activate on Nov. 30, 2008.
The U.S. Department of Defense Service Commands covered under the new contract include: Army, Navy, Marine Corps, Air Force and approximately 20 other independent agencies. During fiscal year 2007, the program had a spend level of approximately $4.9 billion.
Global Transaction Services, a division of Citi Markets & Banking, offers integrated cash management, trade, and securities and fund services to multinational corporations, financial institutions and public sector organizations around the world. With a network spanning over 100 countries, Citi's Global Transaction Services supports over 65,000 clients. As of the 4th quarter of 07, it held on average $245 billion in liability balances and $13.1 trillion in assets under custody.
Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi's major brand names include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Nikko. Additional information may be found at www.citigroup.com or www.citi.com.
Certain statements in this document are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in Citigroup's filings with the Securities and Exchange Commission.