First Quarter 2012 Earnings Review. April 16, 2012

Transcription

1 First Quarter 2012 Earnings Review April 16, 2012

2 Highlights Strong financial results in 1Q 12 Global Consumer Banking positive operating leverage Continued growth in Asia and Latin America Credit quality remains stable internationally, improving in North America Transaction Services record revenues with positive operating leverage Driven by strong growth in global trade finance Securities & Banking highest quarterly revenues in 2 years Strong performance in Fixed Income Rebound in Equities Improving share in Investment Banking Citi Holdings continues to decline 11% of Citigroup assets Substantial and growing capital strength Basel I Tier 1 common ratio of 12.4% (1) Basel III Tier 1 common ratio of 7.2% (2), expect to exceed 8% by year end Note: (1) Preliminary. (2) Estimated. Throughout this presentation, comments on Citi s capital levels under Basel III are based on Citi s current expectations and understanding of Basel III requirements and are subject to final regulatory clarity and rulemaking, model calibration, and other final implementation guidance. 21

3 Significant P&L Items ($MM) 1Q 12 4Q 11 1Q 11 Revenue Items: (1) Citigroup CVA / DVA $(1,288) $(40) $(256) (2) Net Gain on Minority Investments 477 Total (811) (40) (256) Expense Items: Legal and Related Costs $545 $832 $531 Repositioning Charges Total $611 $1,260 $566 Note: All items above are pre-tax. (1) Credit valuation adjustment (CVA) on derivatives, net of hedges, and debt valuation adjustment (DVA) on Citigroup's fair value option debt. (2) As previously disclosed, includes pre-tax gains on the sale of Citi s remaining minority interest in the Housing Development Finance Corporation Ltd. (HDFC) and its minority interest in Shanghai Pudong Development Bank (SPDB) of $1.1B and $542MM, respectively, as well as a pre-tax impairment charge related to its minority interest in Akbank T.A.S. (Akbank) of $1.2B, each recorded in Corporate / Other. 32

4 Citigroup Summary Income Statement ($MM, except EPS) 1Q'12 4Q'11 1Q'11 %rqoq %ryoy Revenues $19,406 $17,174 $19,726 13% (2)% Revenues (ex-cva / DVA & Net Gain) $20,217 $17,214 $19,982 17% 1% Operating Expenses 12,319 13,211 12,326 (7)% (0)% Net Credit Losses 3,955 4,108 6,269 (4)% (37)% Net LLR Build / (Release) (1) (1,165) (1,468) (3,345) 21% 65% PB&C (2)% (12)% Credit Losses, Claims and Benefits 3,019 2,874 3,184 5% (5)% Earnings Before Taxes 4,068 1,089 4,216 NM (4)% Income Taxes 1, ,185 NM (15)% Net Income $2,931 $956 $2,999 NM (2)% Diluted EPS: Reported $0.95 $0.31 $0.99 NM (4)% Ex-CVA / DVA (2) NM 17% Ex-CVA / DVA & Net Gain (3) NM 7% EOP Assets ($B) $1,945 $1,874 $1,948 4% (0)% EOP Loans ($B) % 2% EOP Deposits ($B) % 5% Note: Totals may not sum due to rounding. (1) Includes provision for unfunded lending commitments. (2) Citigroup pre-tax CVA / DVA recorded in Securities and Banking and Special Asset Pool totaled $(1,288)MM, $(40)MM, and $(256)MM in 1Q 12, 4Q 11, and 1Q 11, respectively. Please refer to Slide 27. Assumes tax rates of 37.9%, 45.8%, and 38.2% for 1Q 12, 4Q 11, and 1Q 11, respectively. (3) For more details on the pre-tax gains / (losses) on minority investments in 1Q 12, please refer to Slide 3, Footnote 2. Assumes tax rate on gain of 34.9% in 1Q

5 Citicorp & Citi Holdings Excluding CVA / DVA ($MM) Citicorp Citi Holdings 1Q'12 4Q'11 1Q'11 1Q'12 4Q'11 1Q'11 Revenues (ex-cva / DVA) $19,408 $15,777 $18,367 $786 $1,054 $1,676 Operating Expenses 10,305 10,844 10,236 1,219 1,855 1,443 Net Credit Losses 2,220 2,595 3,250 1,734 1,512 3,018 Net LLR Build / (Release) (1) (588) (803) (1,807) (576) (663) (1,537) PB&C Credit Losses, Claims and Benefits 1,690 1,837 1,498 1,329 1,037 1,685 EBT (ex-cva / DVA) 7,413 3,096 6,633 (1,762) (1,838) (1,452) Net Income (ex-cva / DVA) 5,191 2,366 4,598 (1,080) (1,333) (1,001) EOP Assets ($B) $1,424 $1,365 $1,372 $209 $225 $295 EOP Loans ($B) EOP Deposits ($B) Note: As noted, results exclude CVA / DVA for each period presented. For the Citicorp and Citi Holdings CVA / DVA amounts for each period, please refer to Slide 27. Corporate / Other and Discontinued Operations, which had net income of $(380)MM in 1Q 12, $(55)MM in 4Q 11, and $(439)MM in 1Q 11, are not shown. Corporate / Other assets were $312B in 1Q 12, $284B in 4Q 11, and $281B in 1Q 11 (for more details, please refer to Slide 16). (1) Includes provision for unfunded lending commitments. 54

6 Citicorp Key Financial Metrics ($B) Revenues (ex-cva / DVA) S&B CVA / DVA: (1.0) (0.2) (0.1) (1.4) Expenses Net Credit Losses and LLR (1) Earnings Before Taxes (ex-cva / DVA) LLRs NCLs (0.4) (0.9) (1.0) (1.0) (0.9) (1.4) (0.8) (0.6) (1.8) Note: (1) Includes provision for unfunded lending commitments

7 Global Consumer Banking Key Financial Metrics ($B) Revenues (Constant $) EBT ex-llr (12-Month Trailing) (1) International North America YoY Growth International North America % (5%) 4% 5% 3% (3%) (7%) (8%) 3% (13%) 4% (9%) 7% (7%) 6% 0% 7% 5% Note: Totals may not sum due to rounding. (1) EBT ex-llr represents sum of income (loss) from continuing operations before taxes, credit reserve build / (release), and provision for unfunded lending commitments. 76

8 Citicorp North America Consumer Banking ($MM) 1Q'12 4Q'11 %r 1Q'11 %r Revenues $5,198 $5,167 1% $4,943 5% Citi-Branded Cards 2,068 2,161 (4)% 2,204 (6)% Citi Retail Services 1,502 1,614 (7)% 1,551 (3)% Retail Banking 1,628 1,392 17% 1,188 37% Expenses 2,341 2,672 (12)% 2,278 3% Credit Costs (17)% 1,188 (32)% N.I. from Cont. Ops. $1,317 $944 40% $937 41% Citi-Branded Cards % % Citi Retail Services % 375 1% Retail Banking % 85 NM EBT ex-llr (1) $1,214 $743 63% $276 NM Key Indicators ($B) Accounts (MM) (2)% 120 (3)% RB Avg. Deposits $149 $147 1% $144 4% RB Avg. Loans % 32 27% Cards Avg. Loans Citi-Branded Cards (1)% 75 (2)% Citi Retail Services (2)% 40 (5)% Purchase Sales Citi-Branded Cards (9)% 37 3% Citi Retail Services (24)% 15 2% Revenues Up YoY as higher mortgage revenues offset spread compression in branded cards due to look-back provisions of CARD Act and higher promotional balances, as well as lower average card loans Up slightly QoQ as higher mortgage revenues offset seasonally lower card volumes Expenses Higher YoY on higher investment spending, partially offset by efficiency savings and the absence of a litigation reserve recorded in 1Q 11 Lower QoQ given absence of interchange litigation reserve recorded in 4Q 11 and seasonally lower marketing spend Credit Costs NCLs declined 31% YoY to $1.6B, driven by improvement in cards LLR release of $841MM in 1Q 12, compared to $1.2B in prior year Note: Totals may not sum due to rounding. NM: Not meaningful. (1) EBT ex-llr represents income (loss) from continuing operations before taxes, excluding credit reserve build / (release) and provision for unfunded lending commitments. 87

9 Citicorp International Consumer Banking ($MM) 1Q'12 4Q'11 %r 1Q'11 %r Revenues $4,816 $4,718 2% $4,611 4% EMEA % 421 (10)% Latin America 2,441 2,350 4% 2,294 6% Asia 1,997 2,020 (1)% 1,896 5% Expenses 2,869 2,906 (1)% 2,813 2% Credit Costs % % Net Income $870 $778 12% $985 (12)% EMEA (8) (1) NM 57 NM Latin America % 475 (21)% Asia % % Product Revenues Cards $1,926 $1,962 (2)% $1,865 3% Retail Banking 2,890 2,756 5% 2,746 5% EBT ex-llr (1) $1,254 $1,096 14% $1,092 15% Key Indicators ($B) Accounts (MM) % 78 6% Avg. Deposits $169 $166 2% $166 2% RB Avg. Loans % 88 12% Investment Sales % 20 (6)% Cards Avg. Loans % 36 4% Card Purchase Sales (3)% 28 12% Revenues 1Q 12 reported YoY revenue growth negatively impacted by FX in Latam and EMEA YoY (ex-fx): Total up 7%, with Latam +11%, Asia +5%, and EMEA (6)% Sustained YoY growth in accounts, deposits, loans, and purchase sales QoQ rebound in investment sales reflecting improved investor sentiment Expenses YoY (ex-fx): Total up 5% on volumerelated growth, as incremental investment spending was more than offset by efficiency savings Asia and Latam maintained positive YoY operating leverage Credit costs NCLs declined 3% YoY Net LLR build of $106MM driven by portfolio growth, compared to LLR release of $(216)MM in prior year Note: Totals may not sum due to rounding. NM: Not meaningful. (1) EBT ex-llr represents income (loss) from continuing operations before taxes, excluding credit reserve build / (release) and provision for unfunded lending commitments. 98

10 Citicorp International Consumer Banking ($B) Accounts (MM) Average Loans & Deposits (Constant Dollar $B) Avg Loans Avg Deposits Sales (12-Month Trailing Constant Dollar $B) Financial Metrics (12-Month Trailing $B) Purchase Sales Investment Sales EBT ex-llr (1) NCM (2) Note: (1) EBT ex-llr represents income (loss) from continuing operations before taxes, excluding credit reserve build / (release) and provision for unfunded lending commitments. (2) Net credit margin represents total revenues, net of interest expense, less net credit losses, and provision for benefits and claims. 10 9

11 Citicorp Securities and Banking ($MM) 1Q'12 4Q'11 %r 1Q'11 %r Product Revenues (ex-cva / DVA) Investment Banking $865 $638 36% $851 2% Equity Markets % 1,104 (18)% Fixed Income Markets 4,737 1, % 3,982 19% Lending (66)% 255 (78)% Private Bank % % Other (485) (1) NM (461) (5)% Regional Revenues (ex-cva / DVA) North America $1,977 $ % $2,392 (17)% EMEA 2,555 1, % 2,202 16% Latin America % % Asia 1, % 1,076 26% Total Revenues (ex-cva / DVA) $6,651 $3, % $6,251 6% CVA / DVA (1,376) (74) NM (229) NM Revenues 5,275 3,194 65% 6,022 (12)% Expenses 3,707 3,736 (1)% 3,802 (2)% Credit Costs (16)% (187) NM Revenues Ex-CVA / DVA: 6% YoY growth Investment Banking: Up YoY on strong debt underwriting. QoQ improvement driven by rebound in debt and equity underwriting Equity Markets: Up QoQ (ex-cva / DVA) driven by improvements in derivatives and cash trading. Down YoY on lower market volumes Fixed Income: Higher YoY and QoQ (ex-cva / DVA) on strong growth in rates and currencies Expenses Down 2% YoY driven by efficiency savings Credit Costs NCL reflects a net recovery LLR build mainly driven by portfolio growth Net Income (ex-cva / DVA) $2,087 $(118) NM $1,844 13% Note: Totals may not sum due to rounding. NM: Not meaningful

12 Citicorp Transaction Services ($MM) 1Q'12 4Q'11 %r 1Q'11 %r Revenues $2,743 $2,624 5% $2,562 7% North America % 610 5% EMEA % 837 7% Latin America % 417 8% Asia % 698 8% Expenses 1,388 1,530 (9)% 1,343 3% Credit Costs NM 7 NM N.I. from Cont. Ops. $921 $767 20% $836 10% North America % % EMEA % % Latin America % 172 3% Asia % 283 7% Product Revenues TTS (1) 2,054 1,965 5% 1,844 11% SFS (2) % 718 (4)% Revenues TTS: Up YoY and QoQ on growth in deposits and trade loans, partially offset by continued low rate environment End of period trade loans up 59% YoY and 12% QoQ SFS: Down YoY on lower settlement volumes, but up QoQ on rebound in activity Expenses Up YoY on volume-related growth, as incremental investment spending was more than offset by efficiency savings Achieved 4% positive operating leverage YoY Key Indicators Avg. Deposits (3) ($B) % 356 6% EOP Assets Under Custody ($T) % % Note: Totals may not sum due to rounding. NM: Not meaningful. (1) TTS: Treasury and Trade Solutions. (2) SFS: Securities and Fund Services. (3) Average deposits and other customer liability balances. 112

13 Citi Holdings Key Financial Metrics ($B) Revenues (ex-cva / DVA) CVA / DVA: 0.02 (0.05) 0.02 (0.06) (0.03) Expenses Net Credit Losses and LLR (1) Net Income (as Reported) 0.3 LLRs NCLs (0.6) (1.0) (1.2) (1.5) (0.6) (0.5) (0.7) (0.6) (0.8) (1.3) (1.5) (1.1) (1.0) (0.7) (1.2) (1.3) (1.0) Note: (1) Includes provision for unfunded lending commitments

14 Citi Holdings Financials ($MM) 1Q'12 4Q'11 %r 1Q'11 %r Revenues (ex-cva / DVA) $786 $1,054 (25)% $1,676 (53)% BAM (46) 43 NM 137 NM LCL 1,326 1,279 4% 1,519 (13)% SAP (494) (268) NM 20 NM Expenses 1,219 1,855 (34)% 1,443 (16)% Credit Costs 1,329 1,037 28% 1,685 (21)% Net Income $(1,026) $(1,315) 22% $(1,018) (1)% BAM (137) (92) (49)% (12) NM LCL (634) (1,206) 47% (1,009) 37% SAP (255) (17) NM 3 NM Key Indicators ($B) EOP Deposits $63 $62 3% $74 (14)% EOP Loans (5)% 180 (26)% LCL EOP Loans (4)% 168 (23)% Revenues BAM: YoY reduction driven by lower MSSB JV contribution and higher funding costs LCL: Down YoY driven by declining loan balances SAP: Lower YoY due to lower interest earning assets and the absence of positive PE marks recorded in prior period. Reserve build in 1Q 12 related to private label mortgage securitizations Expenses Down YoY and QoQ on declining assets, offset by higher legal and related expenses Credit Costs NCLs at $1.7B, down YoY driven by SAP and LCL. Up QoQ as incremental mortgage charge-offs offset improvement in credit trends (1) LLR release of $0.6B, down YoY driven by lower releases in SAP; includes specific reserve releases related to incremental mortgage charge-offs (1) Note: As noted, revenues exclude CVA / DVA for each period presented. For Citi Holdings CVA / DVA amounts for each period, please refer to Slide 27. Totals may not sum due to rounding. NM: Not meaningful. (1) 1Q 12 includes approximately $370MM of charge-offs related to previously deferred principal balances on modified mortgages, virtually all of which were offset by a reserve release specific to the deferred principal amounts. Please also refer to Slide 20, Footnote

15 Citi Holdings Asset Summary EOP Assets ($B) 1Q 12 4Q 11 %Δ (29)% Brokerage & Asset Mgmt. $26 $27 (3.7) % MSSB JV (2.9) Retail Alt. Investments 1 1 (17.8) Local Consumer Lending $147 $157 (6.0) % North America (5.7) Loans Mortgages (3.6) Personal (4.6) Other 5 6 (10.8) Other Assets (17.3) International (8.7) 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 % of Total Citigroup Assets 15% 14% 13% 12% 11% QoQ Decline (%) (6)% (10)% (7)% (9)% (7)% Special Asset Pool $36 $41 (12.8) % Securities at HTM 9 10 (13.0) Loans, Leases & LCs 3 4 (14.6) Securities at AFS 4 5 (19.2) Trading MTM (15.3) Other 8 8 (3.2) Total $209 $225 (7.0) % Note: Totals may not sum due to rounding

16 Corporate / Other ($MM) 1Q'12 4Q'11 %r 1Q'11 %r Revenues $500 $383 31% $(61) NM Expenses % % Earnings Before Taxes (295) (129) NM (709) 58% N.I. from Cont. Ops. $(312) $(41) NM $(479) 35% Balance Sheet (EOP $B) Assets $312 $284 10% $281 11% Revenues: Higher YoY and QoQ driven mainly by $1.7B gain on sales of HDFC and SPDB, partially offset by $1.2B Akbank impairment (1) Expenses: Higher YoY and QoQ driven by legal and related expenses Assets: Cash and deposits with banks plus liquid AFS investments represent 82% of Corporate / Other Assets Note: Totals may not sum due to rounding. NM: Not meaningful. (1) Please refer to Slide 3, Footnote

17 Citigroup 1Q 12 Expense Drivers (YoY) ($B) 0.7% 12.3 (0.5) 0.0 (0.1) (0.6) Core operating variance: +$0.1B 1Q'11 Legal & Related Reposi-. FX Adj. tioning 1Q'11 Constant $ Investments Efficiency Saves All Other Operating Adj. 1Q'12 Legal & Related Reposi-, 1Q'12 tioning Year-over-year, core operating expenses up 0.7% on a constant dollar basis Note: Totals may not sum due to rounding. (1) Includes volumes, divestitures, and all other operating expenses. (1) 16 17

18 Citigroup Net Credit Losses and Reserves ($B) Net Credit Losses Corporate (0.2) 0.0 3Q'11 4Q'11 1Q'12 Loan Loss Reserves (1) 1Q 12 LLR ratio = 4.5% (0.1) (1.5) (2.0) (2.3) (2.0) (1.4) (1.5) (1.2) (3.3) Consumer (1.2) (1.2) (1.3) 3Q'11 4Q'11 1Q'12 Note: Totals may not sum due to rounding. (1) Loan loss reserves include provision for unfunded lending commitments and credit reserve builds / (release)

19 Citigroup International Consumer Credit Trends ($B) Citicorp Asia Consumer Banking 90+DPD NCL 1.58% 1.42% 1.30% 1.19% Loans 1Q 11 4Q 11 1Q 12 EOP $83.7 $87.2 $ % 1.05% 1.08% 0.96% 0.86% Citicorp Latin America Consumer Banking 90+DPD NCL 7.17% 6.19% 5.81% 5.51% Loans 1Q 11 4Q 11 1Q 12 EOP $35.1 $37.3 $ % 4.64% 4.43% 4.87% 4.31% 0.71% 0.63% 0.61% 0.57% 0.56% 0.59% 0.52% 0.50% 0.53% 2.80% 2.63% 2.40% 2.02% 1.98% 1.93% 1.84% 1.70% 1.61% 5.12% Citicorp EMEA Consumer Banking 90+DPD 4.88% 3.52% NCL 4.14% Loans 1Q 11 4Q 11 1Q 12 EOP $7.4 $6.9 $ % 2.46% 2.70% 1.59% 1.62% 2.48% 2.74% 2.40% 2.03% 1.85% 1.69% 1.60% 1.49% 1.42% 8.27% 90+DPD Holdings International LCL 7.61% 7.05% NCL 6.32% Loans 1Q 11 4Q 11 1Q 12 EOP $18.1 $10.8 $10.2 Average $18.9 $14.4 $ % 6.41% 5.91% 5.32% 6.43% 3.44% 2.94% 2.89% 3.00% 3.16% 3.21% 3.24% 3.91% 4.20% 18 19

20 Citi Holdings N.A. Mortgage Credit Trends Residential 1 st Mortgages ($B) EOP Loans: 1Q 11: $76.0 4Q 11: $67.5 1Q 12: $65.0 $9.56 $7.94 $6.90 $5.56 $ DPD NCLs $3.93 $3.82 $4.08 $4.05 $0.75 $0.69 $0.59 $0.50 $0.55 $0.46 $0.44 $0.41 $0.75 (1) Home Equity Loans ($B) EOP Loans: 1Q 11: $44.4 4Q 11: $40.0 1Q 12: $ DPD NCLs $1.39 $1.37 $1.34 $1.31 $0.95 $0.86 $0.80 $0.77 $1.18 $0.71 $1.04 $1.01 $1.01 $0.91 $0.63 $0.54 $0.53 $0.56 (1) S&P / Case-Shiller Home Price Index (2) 2.3% 3.8% (1.3)% (3.7)% (4.8)% (5.4)% (3.7)% (4.0)% n/a Note: Loans 90+ days past due exclude U.S. mortgage loans that are guaranteed by U.S. government-sponsored agencies because the potential loss predominantly resides with the U.S. agencies, and loans recorded at fair value. (1) 1Q 12 includes approximately $370MM of charge-offs related to previously deferred principal balances on modified mortgages, of which approximately $315MM was attributable to residential first mortgages with the balance in home equity loans. Virtually all of these charge-offs were offset by a specific reserve release. (2) Year-over-year change in the S&P / Case-Shiller U.S. National Home Price Index. First quarter 2012 not yet available

21 Citigroup Key Capital Metrics Tier 1 Capital Total Capital Tier 1 Common TBV/Share (1) 14.9% 15.6% 16.1% 16.6% 17.0% 17.2% 16.9% 17.0% 12.0% 12.5% 12.9% 13.3% 13.6% 13.5% 13.5% 11.3% 11.3% 11.6% 11.7% 11.8% 10.3% 10.8% 9.1% 9.7% 17.6% 14.2% 12.4% $40.90 $41.86 $44.42 $44.55 $46.87 $48.75 $49.50 $49.74 $50.90 Risk-Weighted Assets ($B) $1,064 $1,025 $1,004 $978 $992 $993 $984 $973 $978 Note: (1) Tangible book value per share is a non-gaap financial measure. For a reconciliation of this metric to the most directly comparable GAAP measure, please refer to Slide 45. (2) Preliminary (2)

22 Conclusions Solid quarterly results Global Consumer Banking our largest business Continued growth in revenues, income and key drivers Positive operating leverage achieved for 2 consecutive quarters Transaction Services record revenues and positive operating leverage Strong growth in trade where our global footprint gives us a unique advantage Securities & Banking improved performance in 1Q 12 Fixed Income continues to perform well Rebound in Equities Early momentum in Investment Banking franchise Maintaining focus on operating expenses Citi Holdings wind down continues Macro outlook improved but uncertainty persists Remain very focused on serving clients while managing risk 21 22

23 APPENDIX Table of Contents 24. Citigroup Net Interest Margin 25. Citigroup Regulatory Capital Drivers 26. Citigroup Return on Average TCE 27. Citigroup CVA / DVA 28. Citigroup Estimated FX Impact on Key P&L Metrics 29. Citicorp International GCB Revenue ex-fx 30. Citicorp Drivers in Constant $ 31. Citicorp Drivers in Constant $ (cont d) 32. Citigroup 1Q 12 Country Risk Exposure Summary 33. Citigroup 1Q 12 Country Risk Exposure Summary (cont d) 34. Citigroup International Consumer Credit 35. Citicorp N.A. Cards Credit Trends 36. Citigroup N.A. Consumer Mortgage Credit Trends 37. Citigroup Mortgage Reps & Warranties 38. Citigroup 1Q 12 Additional Mortgage Details 39. Citi Holdings N.A. Residential 1st Mortgage Delinquencies 40. Citi Holdings N.A. Home Equity Loan Delinquencies 41. Citicorp EM / DM Key Financial Metrics 42. Citi Holdings LCL EBT by Business 43. Citi Holdings SAP Assets 44. Citi Holdings SAP AFS / HTM Assets 45. Non-GAAP Financial Measures 223

24 Citigroup Net Interest Margin Average Interest-Earning Assets ($T) NIM 3.32% 3.15% 3.06% 2.95% 2.88% 2.82% 2.83% 2.90% 2.90% $1.78 $1.79 $1.71 $1.73 $1.72 $1.75 $1.72 $1.67 $1.68 (1) Note: (1) Preliminary

25 Citigroup Regulatory Capital Drivers As of March 31, 2012 ($B) Tier 1 Common Capital (1) Risk-Weighted Assets (1) 182 Citicorp Citi Holdings 149 (32) % (41) 81% Common Stockholders Equity Goodwill & Intangibles Tangible Common Equity Excluded DTA Other Tier 1 Common Capital Total: $978B Note: Totals may not sum due to rounding. (1) Under Basel I. Preliminary

26 Citigroup Return on Average TCE ($B) 1Q'12 4Q'11 Tangible Common Equity (1) Citicorp & Corporate / Other $121 $116 Citi Holdings Citigroup $149 $145 Adjusted Net Income (2) Citicorp & Corporate / Other $4.5 Citi Holdings (1.1) Citigroup $3.4 Return on Average TCE Citicorp & Corporate / Other 15.3% Citi Holdings (14.9)% Citigroup 9.3% Note: Totals may not sum due to rounding. (1) TCE allocated between Citicorp & Corporate / Other and Citi Holdings based on Basel I RWA. Tangible common equity is a non-gaap financial metric. Please refer to Slide 45. (2) Net income excluding CVA / DVA and the net gains on minority investments

27 Citigroup CVA / DVA ($MM) Securities and Banking 1Q 12 4Q 11 1Q 11 DVA on Citi Liabilities at Fair Value $(1,252) $43 $(111) Derivatives CVA (1) (123) (116) (118) Total Securities and Banking CVA / DVA $(1,376) $(74) $(229) Special Asset Pool DVA on Citi Liabilities at Fair Value $(10) $(2) $(2) Derivatives CVA (1) (25) Total Special Asset Pool CVA / DVA $88 $34 $(27) Total Citigroup CVA / DVA $(1,288) $(40) $(256) Note: Totals may not sum due to rounding. (1) Net of hedges

28 Citigroup Estimated FX Impact on Key P&L Metrics Year-over-Year Impact ($B) 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 Revenues $0.3 $0.7 $0.4 $(0.3) $(0.2) Expenses (0.2) (0.1) Cost of Credit (0.0) (0.0) Earnings Before Taxes $(0.0) $0.1 $0.1 $(0.1) $(0.1) Note: Totals may not sum due to rounding

29 Citicorp International GCB Revenue ex-fx Revenues ($MM) YoY (%) QoQ (%) 1Q 12 Reported Ex-FX Reported Ex-FX Latin America $2,441 6% 11% 4% 0% Asia 1,997 5% 5% (1)% (2)% EMEA 378 (10)% (6)% 9% 6% International GCB $4,816 4% 7% 2% 0% Note: Totals may not sum due to rounding

30 Citicorp Drivers in Constant Dollars ($B) 1Q 12 Asia GCB 1Q 12 4Q 11 3Q 11 2Q 11 1Q 11 YoY QoQ Cards Avg Loans % 1% Cards EOP Loans % (3%) RB Avg Loans % 1% RB EOP Loans % 1% Average Deposits % 0% EOP Deposits % 0% Cards Purchase Sales % (3%) RB Investment Sales (26%) 38% RB Investment AUMs (5%) 5% 1Q 12 LATAM 1Q 12 4Q 11 3Q 11 2Q 11 1Q 11 YoY QoQ Cards Avg Loans % 2% Cards EOP Loans % (0%) RB Avg Loans % 8% RB EOP Loans % 3% Average Deposits % 1% EOP Deposits % (1%) Cards Purchase Sales % (9%) RB Investment Sales % 62% RB Investment AUMs % 9% (1) Note: (1) Constant dollars based on March 31, 2012 foreign exchange rates

31 Citicorp Drivers in Constant Dollars (1) ($B) 1Q 12 EMEA GCB 1Q 12 4Q 11 3Q 11 2Q 11 1Q 11 YoY QoQ Cards Avg Loans % 3% Cards EOP Loans % 0% RB Avg Loans % 4% RB EOP Loans % 2% Average Deposits % 4% EOP Deposits % 1% Cards Purchase Sales % 1% RB Investment Sales % 21% RB Investment AUMs % 7% 1Q 12 ICG 1Q 12 4Q 11 3Q 11 2Q 11 1Q 11 YoY QoQ GTS Avg Liability Balances % 2% NA % 7% EMEA % 1% Latin America % (4%) Asia (2%) 2% ICG Average Loans % 3% NA % 2% EMEA % 2% Latin America % 4% Asia % 5% Note: (1) Constant dollars based on March 31, 2012 foreign exchange rates

32 Citigroup 1Q 12 Country Risk Exposure Summary ($B) As of March 31, 2012 GIIPS (1) Greece Ireland Italy Portugal Spain Gross Funded Credit Exposure (2) $20.5 $1.6 $0.8 $10.0 $0.6 $7.5 Less: Margin and Collateral (3) (4.0) (0.3) (0.3) (1.1) (0.1) (2.1) Less: Purchased Credit Protection (4) (10.5) (0.1) (0.0) (7.7) (0.2) (2.5) (14.5) (0.4) (0.4) (8.8) (0.3) (4.6) Net Current Funded Credit Exposure $6.0 $1.2 $0.5 $1.2 $0.3 $2.9 Net Trading and AFS Exposure 3.2 (0.0) (0.1) Net Current Funded Exposure $9.1 $1.2 $0.4 $3.0 $0.4 $4.1 Additional Collateral Received Not Netted ($3.6) ($1.1) ($0.2) ($0.7) ($0.1) ($1.5) Net Current Funded Credit Exposure Detail: Sovereigns $0.8 $0.2 $0.0 $0.5 $0.0 $0.0 Financial Institutions (0.0) 0.1 (0.0) 1.6 Corporations Net Current Funded Credit Exposure $6.0 $1.2 $0.5 $1.2 $0.3 $2.9 Note: Information based on Citi s internal risk management measures. (1) Greece, Ireland, Italy, Portugal, and Spain. (2) Includes the net credit exposure arising from secured financing transactions, such as repos and reverse repos. Does not include unfunded commitments. For additional details on unfunded commitments, see Slide 33. (3) Margin posted under legally-enforceable margin agreements and collateral pledged under bankruptcy-remote structures. Does not include collateral received on secured financing transactions. (4) Credit protection purchased from financial institutions predominately outside of GIIPS. Credit protection may not be effective to protect against all types of losses and thus Citi should still experience losses despite the existence of the credit protection

33 Citigroup 1Q 12 Country Risk Exposure Summary ($B) As of March 31, 2012 GIIPS (1) Greece Ireland Italy Portugal Spain Sovereigns $0.3 $0.0 $0.0 $0.0 $0.0 $0.3 Financial Institutions Corporations Unfunded Commitments $8.1 $0.4 $0.6 $3.7 $0.4 $3.0 (1) Note: Information based on Citi s internal risk management measures. (1) Greece, Ireland, Italy, Portugal, and Spain

34 Citigroup International Consumer Credit 1Q'12 ENR % of Total 90+DPD Ratio NCL Ratio % of Total ($B) ENR 1Q'12 4Q'11 1Q'12 4Q'11 NCLs Citicorp Korea $ % 0.4% 0.3% 0.8% 0.8% 8.1% Mexico % 1.2% 1.3% 3.3% 3.3% 32.7% Australia % 1.0% 0.9% 1.6% 1.4% 8.6% Singapore % 0.1% 0.1% 0.2% 0.3% 1.0% Hong Kong % 0.1% 0.0% 0.3% 0.6% 0.8% Brazil % 2.8% 3.0% 8.9% 8.3% 26.8% India % 0.6% 0.6% 0.6% 0.8% 1.8% Taiwan % 0.2% 0.2% 0.0% (0.1)% 0.1% Malaysia % 1.4% 1.5% 0.8% 0.8% 1.8% Japan % 0.5% 0.5% 0.8% 2.8% 0.8% 84.6% 0.8% 0.8% 1.9% 1.9% 82.4% Citi Holdings Spain $ % 4.3% 4.3% 5.5% 5.3% 22.8% UK % 3.8% 3.8% 1.2% (0.4)% 3.9% Japan % 1.9% 1.9% 8.0% 9.6% 20.6% Greece % 6.8% 5.1% 19.5% 18.0% 38.9% 86.0% 4.1% 3.7% 7.2% 7.1% 86.2% Note: For 1Q 12, Citicorp total end of period international consumer loans were $136.2B and total NCLs were $0.6B; Citi Holdings total end of period loans were $10.2B and total NCLs were $0.2B. Citi Holdings includes international Local Consumer Lending. 334

35 Citicorp N.A. Cards Credit Trends Citi-Branded Cards ($B) EOP Loans: 1Q 11: $74.5 4Q 11: $77.2 1Q 12: $ % 10.61% 9.65% 8.67% 7.30% 6.71% 5.89% 90+DPD NCLs 5.26% 4.94% 2.92% 2.71% 2.32% 2.03% 1.93% 1.62% 1.42% 1.32% 1.35% Citi Retail Services ($B) EOP Loans: 1Q 11: $37.4 4Q 11: $39.9 1Q 12: $ % 12.88% 90+DPD NCLs 11.40% 10.90% 9.54% 8.70% 7.19% 7.08% 7.11% 4.39% 3.71% 3.55% 3.20% 2.97% 2.38% 2.38% 2.38% 2.30% Unemployment Rate 9.8% 9.4% 9.5% 9.4% 8.9% 9.1% 9.0% 8.5% 8.2% Source: U.S. Bureau of Labor Statistics 34 35

36 Citigroup N.A. Consumer Mortgage Credit Trends Residential 1 st Mortgages Citigroup ($B) EOP Loans: 1Q 11: $98.1 4Q 11: $95.4 1Q 12: $ DPD NCLs $9.61 $8.04 $7.02 $5.70 $4.68 $4.08 $3.99 $4.27 $4.27 $0.75 $0.70 $0.60 $0.51 $0.57 $0.48 $0.46 $0.43 $0.77 (1) Home Equity Loans Citigroup ($B) EOP Loans: 1Q 11: $48.2 4Q 11: $43.5 1Q 12: $ DPD NCLs $1.40 $1.38 $1.35 $1.32 $1.19 $0.95 $0.86 $0.80 $0.78 $0.72 $1.05 $1.03 $1.02 $0.92 $0.63 $0.55 $0.54 $0.57 (1) S&P / Case-Shiller Home Price Index (1) 2.3% 3.8% (1.3)% (3.7)% (4.8)% (5.4)% (3.7)% (4.0)% n/a Note: Loans 90+ days past due exclude U.S. mortgage loans that are guaranteed by U.S. government-sponsored agencies because the potential loss predominantly resides with the U.S. agencies, and loans recorded at fair value. (1) 1Q 12 includes approximately $370MM of charge-offs related to previously deferred principal balances on modified mortgages, of which approximately $315MM was attributable to residential first mortgages with the balance in home equity loans. Virtually all of these charge-offs were offset by a specific reserve release. 35 (2) Year-over-year change in the S&P / Case-Shiller U.S. National Home Price Index. First quarter 2012 not yet available. 36

37 Citigroup Mortgage Reps & Warranties Claims (1) Repurchases (2) Repurchase Reserve Balance ($MM) (Number of Loans 000) = 43.8 GSEs 16.0 Private Investors $969 $944 $1,001 $1,076 $1,188 $1, = Q'10 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 $MM 4Q 11 1Q 12 Beginning balance $1,076 $1,188 Additions for new sales (3) 7 6 Change in estimate (3) (4) Losses realized (200) (153) Q Q12 Ending balance $1,188 $1,376 Note: Totals may not sum due to rounding. (1) Private investor claims include repurchase claims for repurchases of loans sold through private-label securitizations. (2) Includes loans repurchased and make-whole payments. (3) Flows through the profit and loss statement (contra-revenue item). (4) Includes $185MM related to loan sales to GSEs and private investors and $150MM related to loans sold through private-label securitizations

38 Citigroup 1Q 12 Additional Mortgage Details Third party servicing portfolio: $382B Retained rep & warranty liability for an additional $24B of sold servicing Private label RMBS: $91B of total issuance during CitiMortgage: $24.6B of issuance Reduced by $13.5B of repayments and $1.1B of cumulative losses Remaining $10.0B has 90+ day delinquency rate of 13.7% Securities & Banking: $66.4B of issuance Reduced by $34.7B of repayments and $9.1B of cumulative losses Remaining $22.5B has 90+ day delinquency rate of 27.1% $1.4B repurchase reserve for rep & warranty claims as of 1Q 12 (1) (2) Note: (1) The $10B of outstanding CitiMortgage issuance is included in the $382B servicing portfolio above. (2) For legacy Securities and Banking issuances, fewer than 2% of mortgages outstanding were originated by Citi; fewer than 10% of mortgages outstanding are serviced by Citi (such mortgages are included in the $382B servicing portfolio above)

39 Citi Holdings N.A. Mortgage Delinquencies Residential 1 st Mortgage Delinquencies (1) ($B) Days Past Due: DPD Note: Totals may not sum due to rounding. (1) Days past due exclude U.S. mortgage loans that are guaranteed by U.S. government-sponsored agencies, because the potential loss predominantly resides with the U.S. agencies, and loans are recorded at fair value

40 Citi Holdings N.A. Mortgage Delinquencies Home Equity Loan Delinquencies (1) ($B) Days Past Due: DPD Note: Totals may not sum due to rounding. (1) Days past due exclude U.S. mortgage loans that are guaranteed by U.S. government-sponsored agencies, because the potential loss predominantly resides with the U.S. agencies, and loans are recorded at fair value

41 Citicorp EM / DM Key Financial Metrics ($B) Emerging Markets Developed Markets Revenues (ex-cva / DVA) Earnings Before Taxes (ex-cva / DVA) Average Deposits Average Loans Note: Totals may not sum due to rounding

42 Citi Holdings LCL EBT by Business ($MM) Earnings Before Taxes 1Q'12 4Q'11 3Q'11 2Q'11 1Q'11 Local Consumer Lending - CitiFinancial N.A. $10 $94 $20 $75 $40 - Real Estate Lending (1,144) (1,626) (1,360) (1,615) (1,162) - Commercial Real Estate (17) (60) (25) (84) (90) - Student Loans (12) 9 (15) (73) (34) - Prime Re LCL N.A. Other (173) (55) (139) (51) (62) North America (1,189) (1,489) (1,378) (1,717) (1,138) EMEA (61) (157) (196) (166) (37) Asia (49) (34) (475) Latin America (5) (5) Local Consumer Lending $(1,076) $(1,618) $(1,621) $(1,922) $(1,655) Note: Totals may not sum due to rounding

43 Citi Holdings SAP Assets EOP Assets 1Q 12 ($B) Face EOP Assets 1Q 12 4Q 11 3Q 11 2Q 11 Value (% of Face) Total Securities at AFS / HTM $13.2 $15.5 $17.1 $19.4 $ % Loan, Leases & LC at HFI / HFS (1) $3.1 $3.6 $4.4 $6.9 $3.5 89% Corporates % Commercial Real Estate % Other (2) % Loan Loss Reserves (0.3) (0.4) (0.6) (0.6) - NM Trading Mark-to-Market $11.7 $13.9 $14.9 $13.3 NM NM Subprime Securities % Other Securities (3) % Derivatives NM NM Loans, Leases and Letters of Credit % Repurchase Agreements NM NM Highly Lev. Fin. Commitments % Equities (excludes ARS at AFS) NM NM Consumer and Other (4) NM NM Total $36.0 $41.3 $45.3 $52.9 Note: Totals may not sum due to rounding. NM: Not meaningful. SAP had total CRE assets of $2.6B and Subprime assets of $0.6B as of 1Q 12. Assets in the SIVs have been allocated to their corresponding asset categories. Excludes Discontinued Operations. (1) HFS accounts for approximately $0.8B of the 1Q 12 total. (2) Includes $0.2B of Leases and $0.1B of Subprime in 1Q 12. (3) Includes $0.3B of Corporates, $1.7B of ARS, $0.2B of Equities, $0.2B of Subprime and $0.3B of CLOs in 1Q 12. (4) Includes $0.4B of Small Business Banking & Finance loans and $0.5B of personal loans in 1Q

44 Citi Holdings SAP AFS / HTM Assets EOP Assets 1Q 12 ($B) Face EOP Assets 1Q 12 4Q 11 3Q 11 2Q 11 Value (% of Face) Securities at AFS $4.4 $5.4 $5.7 $6.1 $4.8 92% Corporates % Prime and Non-U.S. MBS Auction Rate Securities % Other Securities % Securities at HTM $8.8 $10.1 $11.3 $13.3 $ % Corporates % Prime and Non-U.S. MBS % Alt-A Mortgages % Other Securities (1) % Total Securities at AFS / HTM $13.2 $15.5 $17.1 $19.4 $ % Note: Totals may not sum due to rounding. NM: Not meaningful. Assets in the SIVs have been allocated to their corresponding asset categories. (1) Includes assets previously held by SIVs ($1.4B of ABS, CDOs / CLOs and Subprime)

45 Non-GAAP Financial Measures Reconciliations ($ millions, except per share amounts) Citigroup's Total Stockholders' Equity $151,421 $154,806 $162,913 $163,468 $171,037 $176,364 $177,372 $177,806 $181,820 Less: Preferred Stock Common Stockholders' Equity 151, , , , , , , , ,508 Less: Goodwill 25,662 25,201 25,797 26,152 26,339 26,621 25,496 25,413 25,810 Intangible Assets (other than Mortgage Servicing Rights) 8,277 7,868 7,705 7,504 7,280 7,136 6,800 6,600 6,413 Goodwill and Intangible Assets - recorded as Assets Held for Sale / Assets of Discont. Operations Held for Sale Net Deferred Tax Assets Related to Goodwill and Intangible Assets Tangible Common Equity (TCE) $117,060 $121,297 $129,040 $129,444 $136,888 $142,245 $144,717 $145,437 $149,244 Common Shares Outstanding at Quarter-end 2,862 2,898 2,905 2,906 2,921 2,918 2,924 2,924 2,932 Tangible Book Value Per Share $40.90 $41.86 $44.42 $44.55 $46.87 $48.75 $49.50 $49.74 $50.90 (Tangible Common Equity / Common Shares Outstanding) 445

46 Certain statements in this document are forward-looking statements within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission. These statements are based on management s current expectations and are subject to uncertainty and changes in circumstances. Actual results and capital and other financial condition may differ materially from those included in these statements due to a variety of factors, including the precautionary statements included in this document and those contained in Citigroup s filings with the U.S. Securities and Exchange Commission, including without limitation the Risk Factors section of Citigroup s 2011 Form 10-K