Second Quarter 2000 Earnings Review. July 19, 2000

Transcription

1 Second Quarter 2000 Earnings Review July 19, 2000

2 Second Quarter Highlights $3.0B Core Earnings 23% EPS growth 22% earnings growth in Global Consumer, 2% in GC&IB and 11% in GIM&PB 25% ROE $9 billion invested in strategic acquisitions and alliances year-to-date Market share gains in GC&IB Global cards income up 31% Total Emerging Markets income up 37% Credit continues to improve

3 Citigroup on the Internet AOL alliance Citi as preferred provider of financial services to AOL s tens of millions of customers moving Citigroup s full range of products onto the Web high volume of customer traffic Building an embedded payments function into AOL, enabling person-to-person money transfers (any account, anywhere) person-to-merchant payments MyCiti.com Launching account aggregation Combining the best of Citi s on-line products

4 Diversified Global Earnings Growth - 2Q Second Quarter 2000 Core Income ($ in Millions) Global Consumer Global Corporate & Investment Bank 2Q00 $ 1,280 1,537 2Q99 $ 1,07 1,2 % Change 22% 2% Global Consumer 3% 8% Global Corporate & Investment Bank 51% 6% Global Investment Mgmt. & Private Banking Corporate/Other 172 (216) 155 (131) 11% (65%) Investment Activities Note: Excluding Corporate/Other Global Investment Management & Private Banking Investment Activities % Core Income $ 3,007 $ 2,77 21% North America 61% 9% 6% Europe Diluted EPS $.87 $.71 23% Latin America 8% 12% % Japan Central Europe Asia Note: Excluding Investment Activities

5 Diversified Global Earnings Growth - YTD YTD 2000 Core Income ($ in Millions) Global Consumer Global Corporate & Investment Bank YTD 00 $ 2,516 3,366 YTD 99 $ 2,0 2,583 % Change 23% 30% Global Consumer 38% 13% Global Corporate & Investment Bank 51% 5% Global Investment Mgmt. & Private Banking Corporate/Other Investment Activities 35 (86) (277) % (75%) 26% Investment Activities Note: Excluding Corporate/Other Global Investment Management & Private Banking Core Income $ 6,609 $,892 35% North America 61% 10% Europe Diluted EPS $ 1.91 $ % 8% Latin America 6% % 11% Asia Japan Central Europe Note: Excluding Investment Activities

6 Across the Board Performance Core Income Second Quarter 2000 (Year-over Year %) Transaction Services Asia Pacific Consumer CitiFinancial Citibanking N.A. Commercial Lines Mortgage Banking Europe Consumer Private Client Travelers Life & Annuity Global Corporate Finance SSB Citi Asset Management Primerica Financial Services Global Private Bank N.A. Cards Personal Lines Latin America Consumer 26% 18% 17% 12% 11% 11% 11% 10% % 0% 69% 50% 35% 33% 27% 31% Global Cards* Double-digit earnings growth for 1 of 16 businesses 0% 20% 0% 60% 80% 225% 225% Excludes e-consumer, e-citi and Investment Activities * Includes N.A. Cards

7 Strong Revenue Growth Revenue Second Quarter 2000 (Year-over-Year %) SSB Citi Ass et Managem ent Asia Pacific Consu mer Tran saction Services CitiFinancial Private Client Global Corporate Finance Mortgage Banking Travelers Life & Annuity Global Private Bank Citibanking N.A. Pri me rica Financial Services Co mm ercial Lines Personal Lines Europe Consu mer N.A. Cards Latin America Consumer 16% 1% 13% 13% 12% 10% 8% % % 2% 1% (local currency) (1%) 5% Global Cards* (6%) 3% 27% 22% 20% Over Over two-thirds two-thirds of of businesses businesses generating generating revenue revenue growth growth 10% 10% or or greater greater -10% 0% 10% 20% 30% 0% Excludes e-consumer, e-citi and Investment Activities * Includes N.A. Cards

8 Revised Public Disclosure Existing Disclosure Products Revised Disclosure Regions Salomon Smith Barney Global Relationship Bank Emerging Markets Global Corporate Finance (1) Global Fixed Income FX & Structured Products EM Sales & Trading Loan Liquidity Other Transaction Services (1) e-corporate Cash/Trade Private Client Other (1) Global Arbitrage Nikko Securities Global Equities Investment Banking EM Local finance Phibro WWSS JENA (2) Emerging Markets Asia CEEMEA Latin America e-citi! e-consumer e-corporate! e-citi (1) Product subset financials not disclosed (2) JENA includes Japan, Western Europe, North America. AND Global Cards Wealth Management (Q3)

9 Citigroup Total Emerging Markets Presence ($ in Millions) $800 Core Income $686 Million, up 37% Long Term Success: Hong Kong 1902 Singapore 1902 Argentina 191 Brazil 1915 $600 $00 $200 Global Consumer Global Corporate & Investment Bank $0 2Q99 2Q00 Definitions of Geography Asia excludes Japan and the Indian sub-continent but includes Australia/NZ CEEMEA (Central & Eastern Europe, Middle East and Africa) includes the Indian sub-continent GIM & PB Investment Activities

10 Cards Expanding Internationally International Cards Receivables EOP Receivables ($ in billions) $12 $8 $ $0 $3.9 $5.2 5 Year CAGR 19% $6.5 $6.6 $7.7 $9. $10.1 Global Cards 31% income growth $29 million in 2Q core income $92 billion in managed receivables 55 million accounts Q00 30 Countries 6 Countries (Incl. U.S. & Canada)

11 Citigroup Consumer Channels Investment Products Distribution ($ in Millions) $7,000 Total $6.7 Billion $.0B Proprietary $2.7B Third Party PFS (US Sales) $5,250 Citibanking N.A. $3,500 EMEA Asia Pacific $1,750 Latin America $0 2Q00

12 GCIB Building Market Share Fixed Income Underwriting Investment Grade High Yield Global Loan Syndication YTD Full Year Full Year 2Q Share Rank Share Rank Share Rank 12.9% 13.2% 9.5% 11.1% % 1.6% 8.2% 8.9% % 12.6%.7% 8.5% 2 3 M&A U.S. 32.6% 21.9% 25.3% Europe 17.5% Not ranked Not ranked Japan 20.9% % 6.0% 3 Global 23.9% 3 13.% % Equity Underwriting U.S. 11.0% 9.5% 7.6% Europe 7.8% 2.0% % 12 Asia 9.3% % % 3 Japan 59.2% % 2 3.9% 8 Global 10.6% 3 7.3% 5.3% 6 Source: Securities Data Corp., IFR

13 Private Client Performance Second Quarter 2000 $1,100 $825 $72 Total Client Assets 2 Yr CAGR 19% ($ in Billions) $852 $1,032 Total Assets Under Fee-Based Management $200 $150 2 Yr CAGR 21% $132 ($ in Billions) $13 $19 $550 2Q98 2Q99 2Q00 $100 2Q98 2Q99 2Q00 Registered Financial Consultants Private Client Core Income 12,000 10,000 10,9 11,032 11,686 $300 $250 $225 ($ in Millions) $265 $200 8,000 $150 6,000 2Q98 2Q99 2Q00 $100 2Q99 2Q00

14 Leverage Distribution 100 Million Customers Distribution Channels: Market Leadership Open Architecture CitiStreet Internet Distribution 500 Representatives 150,000 PFA s 7,000 Agents 1,200 Offices 6 MM Internet Relationships 2,600 Rel. Managers 11,500 FC s 850 Inst. Sales 1,500 Inv. Bankers 750 Private Bankers 8,000 Agents 1,00 Branches >100 countries Tailoring Management Focus Product Manufacturing: Best in Class Products Scale Efficiency Transactions Credit & Financing Insurance Asset Management Third Party Products

15 Cross-Marketing Progress Second Quarter 2000 Asset Management U.S. mutual fund and money fund sales $.8 billion through SSB retail branches $69 million through Primerica, representing 6% of Primerica sales $800 million through Citibank branches International sales through Citibank $500 million in Europe $1.7 billion in Latin America $500 million in Asia Pacific Banking/Lending $870 million mortgage applications through SSB $530 million mortgages closed through SSB $70 million CitiFinancial loans through Primerica and $59 million through North America Cards Insurance Over $800 million annuity sales through SSB, Primerica and Citi branches SSB - over $0 million Primerica - over $20 million Citibank branches - over $130 million Global Corporate & Investment Bank More than 50% growth in revenue from SSB products sold to GRB customers Over 10,00 property casualty policies through North America Cards

16 Strategic Acquisitions and Alliances Year-to-Date June 2000 Announced Acquisitions by $ Amount Committed Latin America 6% U.S. U.S. & Canada Canada 6% 6% Asia Asia 8% 8% Europe Europe 0% 0% Significant 2Q Commitments/ Closings Schroders Travelers P&C (15%) Bank Handlowy (66%) Fubon Group (15%) Copelco Reliance Siembra Canada Trust card portfolio Garante Announced Acquisitions by $ Amount Committed Corporate Banking 22% Insurance, Annuities & Pensions 3% Consumer Banking.8% Investment Banking 30% Total Committed YTD 2000 = $8.9 Billion

17 Citigroup Credit Quality U.S. Bankcards Net Credit Losses as a % of Average Loans CitiFinancial Net Credit Losses as a % of Average Loans 6.25% 5.85% 6.0% 5.85% 3.50% 5.25%.25% 5.50% 5.56% 5.65% 5.15%.82%.72%.63%.0%.3%.35% 3.96% 2.50% 2.99% 2.99% 2.87% 2.51% 2.93% 2.78% 2.61% 2.67% 2.38% 2.1% 2.00% 2.19% 1.93% 1.92% 3.25% 1Q97 2Q97 3Q97 Q97 1Q98 2Q98 3Q98 Q98 1Q99 2Q99 3Q99 Q99 1Q00 2Q % 1Q97 2Q97 3Q97 Q97 1Q98 2Q98 3Q98 Q98 1Q99 2Q99 3Q99 Q99 1Q00 2Q00 Mortgage Banking Net Credit Losses as a % of Average Loans 0.81% International Consumer NCL as a % of Average Loans 2.75% 0.61% 2.29% 0.1% 0.5% 0.51% 0.2% 0.2% 0.31% 0.29% 0.27% 0.20% 0.17% 0.12% 0.15% 0.1% 1.75% 1.51% 1.7% 1.0% 1.38% 1.50% 1.68% 1.7% 1.77% 2.12% 2.06% 1.86% 1.91% 1.68% 0.05% 0.01% 1Q97 2Q97 3Q97 Q97 1Q98 2Q98 3Q98 Q98 1Q99 2Q99 3Q99 Q99 1Q00 2Q % 1Q97 2Q97 3Q97 Q97 1Q98 2Q98 3Q98 Q98 1Q99 2Q99 3Q99 Q99 1Q00 2Q00

18 Capital Discipline Second Quarter 2000 Stockholders equity (1) (billions) 2Q00 (2) $ Q00 $ Q99 $ 9.8 ROE 2.8% 29.9% 23.2% Strong regulatory capital ratios Tier I Ratio (>7.5% (3) ) 8.6% 9.8% 9.% Total Capital Ratio (>10.5% (3) ) 11.1% 12.5% 12.1% GAAP Assets (billions) $ 792 $ 738 $ 689 Consistent share repurchase 16.9 million shares for 2Q million shares for 1Q00 Shares outstanding down 6.9 million shares from one year ago to 3. billion (1) Includes trust securities (2) Estimated (3) Management guideline

19 Best in Class Bank of the Year - IFR Deal of the Decade - Travelers Group/Citicorp - Mergers & Acquisitions World s Most Respected Financial Institution - Citigroup - Financial Times Best Global Consumer Bank - Citibank - Global Finance Best Commercial Bank of the Year - Citibank - Corporate Finance Best Online Bank - Citibank - Worth Magazine Forbes Favorite in Online Banking: Citibank #1 Derivatives Dealer - Institutional Investor #1 Project Finance #1 Cash Management #1 Emerging Markets Bank #1 Securitization #1 Foreign Exchange Year-to-Date Rankings Corporate & Investment Banking #1 European Corporate Debt- Issuance (all currencies) #2 Global Underwriting #3 Global M&A #3 Syndicated Lending #1 M&A in Japan #3 M&A in Asia (excl. Japan) #1 Equity in Japan #1 International Debt Global Consumer Largest global cards issuer Insurance #1 in Surety #2 in Personal Lines #3 in Commercial Lines Global Investment Management #10 in assets under management

20 Citigroup Business Model Diversified global earnings growth Geography, product, channel Stable and recurring income Business leadership Market share leaders Distribution power Management discipline Expense and risk management Cross-sell management Acquisition integration Technology leadership Internet enabled Scale platforms Capital Strength Efficient management Play offense