Fourth Quarter 2009 Earnings Review. January 19, 2010

Transcription

1 Fourth Quarter 2009 Earnings Review January 19, 2010

2 2009 Summary Substantial progress in 2009 Built financial strength Reduced our size and scope Clear strategy built around Citi s distinctiveness Created Citi Holdings and reduced non-core assets Completed overhaul of risk management Restructured businesses and added strong leadership Repaid TARP Strong operating businesses in Citicorp We enter 2010 with a solid foundation Some signs of credit stabilization 1

3 Major P&L Items in 4Q 09 Pre-tax ($MM) Impact Segment Loss from USG TruPs repayment (1) $(7,988) Corp/Other Exiting of loss-sharing agreement with USG (2) (2,064) Corp/Other Citigroup Credit Value Adjustment (3) (1,789) S&B; SAP (1) Loss from the repayment of trust preferred securities held by the U.S. government ($4.9B after-tax). (2) Impact from the termination of the loss-sharing agreement with the government ($1.3B after-tax). It arises from the removal of the loss-sharing asset of ~$3.2B and the cancelation of ~$1.1B carrying value of trust preferred securities ($1.8B notional amount). (3) Credit value adjustment (CVA) on Citi Liabilities at Fair Value Option (FVO) and derivatives of $949 million due to tightening in Citi s credit spreads in the fourth quarter and a $840 million adjustment to the FVO CVA balance, reflecting correction of prior periods. Please see slide 36 for Citi s CVA in 3Q and 4Q of

4 Citigroup Summary Income Statement ($MM, Except EPS) 4Q'09 3Q'09 4Q'08 % QoQ % YoY Net Interest Revenue $11,161 $11,998 $13,271 (7)% (16)% Non Interest Revenue (5,756) 8,392 (7,625) NM 25% Net Revenues 5,405 20,390 5,646 (73)% (4)% Operating Expenses 12,314 11,824 24,642 4% (50)% Net Credit Losses 7,135 7,969 6,143 (10)% 16% Net LLR Build (1) ,958 (6)% (87)% PB&C (9)% (51)% Credit Losses, Claims and Benefits 8,184 9,095 12,695 (10)% (36)% Income Taxes (7,353) (1,122) (10,698) NM 31% Income from Cont. Ops. (7,740) 593 (20,993) NM 63% Net Income $(7,579) $101 $(17,263) NM 56% Net Income Available to Common (7,766) (3,242) (17,891) NM 57% Diluted EPS from Cont. Ops. (2, 3) $(0.34) $(0.23) $(4.04) (48)% 92% Diluted EPS (2, 3) $(0.33) $(0.27) $(3.40) (22)% 90% (1) Includes provision for unfunded lending commitments. (2) 3Q 09 Includes $(2.2)B impact to common shareholders from the completion of all stages of the exchange offers, net of $851MM gain flowing through net income. (3) Diluted shares used in the diluted EPS calculation represent basic shares due to the negative income available to common shareholders. Using actual diluted shares would result in anti-dilution. Note: Totals may not sum due to rounding. 3

5 Citigroup Financial Summary ($MM) Citicorp Citi Holdings 4Q'09 3Q'09FY Q'09 3Q'09FY 2009 Net Revenues $11,652 $13,025 $60,206 $4,739 $6,694 $30,635 Operating Expenses 8,498 8,181 31,725 3,260 3,202 14,677 Net Credit Losses 1,564 1,718 6,079 5,570 6,250 24,660 Net LLR Build (1) , ,566 PB&C ,210 Credit Losses, Claims and Benefits 1, ,197 8, , ,898 31,436 Income Before Taxes 1,568 2,647 19,654 (5,121) (3,406) (15,478) Net Income $1,687 $2,284 $14,711 $(2,472) $(1,867) $(8,266) EOP Assets $1,079 $1,014 $547 $617 EOP Deposits (1) Includes provision for unfunded lending commitments. Note: Corporate/Other not shown. Net income was $(7,026) million in 4Q 09, $102 million in 3Q 09 and $(7,606) million for For more details please refer to slide 13. 4

6 Citicorp N.A. Regional Consumer Banking ($MM) 4Q'09 3Q'09 % 4Q'08 % Revenues Managed (1) N.A. Regional Consumer Banking: Managed revenues down 5% QoQ Cards revenues $2,386 $2,484 (4)% $2,485 (4)% due to CARD Act impact and Total revenues 3, ,554 (5)% 3,449 (2)% lower banking revenues NCLs 2,035 2,156 (6)% 1,444 41% GAAP cards revenue decreased QoQ mainly driven by impact from Revenues $1,642 $1,754 (6)% $1,847 (11)% implementation of CARD Act, partly Cards (6)% 883 (27)% offset by lower losses flowing through Retail Banking 1,000 1,070 (7)% 964 4% the securitization trusts Expenses 1,336 1,331 0% 3,881 (66)% Credit Costs % 370 (3)% Net Income $9 $163 (94)% $(2,048) NM Cards (101) 13 NM (55) (84)% Retail Banking (27)% (1,993) NM Key Indicators ($B): Avg. Deposits $145.9 $ % $ % RB Avg. Loans (1)% % Cards Avg. Mgd. Loans (1) % 82.6 (1)% Purchase Sales (1)% 46.0 (9)% Retail Banking revenue decline QoQ mainly due to lower yield on corporate treasury placements associated with deposits Expenses Flat versus prior quarter. 4Q 08 includes $2.3B goodwill impairment Credit costs Managed NCLs improved $121MM QoQ, in part due to loss mitigation efforts (1) Managed metrics are non-gaap financial measures. Please see slides 38 and 39 for additional information on these metrics. 5

7 Citicorp Int l Regional Consumer Banking ($MM) 4Q'09 3Q'09 % 4Q'08 % Revenues Revenues $4,078 $3,921 4% $3,863 6% Continued QoQ improvement in most EMEA (7)% 398 (3)% drivers across all regions and Latin America 1,918 1,826 5% 1,852 4% FX impact Asia 1,774 1,680 6% 1,613 10% Expenses 2,477 2,216 12% 6,692 (63)% Expenses Credit Costs 1,156 1,435 (19)% 1,441 (20)% QoQ driven by selective investment spending in Asia and Latin America, Net Income $466 $452 3% $(3,860) NM repositioning, and FX impact EMEA (43) (23) (87)% (37) (16)% Latin America % (4,215) NM Credit costs Asia % % QoQ improvement across all regions Product Revenues: Cards $1,742 $1,676 4% $1,686 3% Retail Banking 2,336 2,245 4% 2,177 7% Key Indicators ($B): Avg. Deposits $142.4 $ % $ % RB Avg. Loans % % Cards Avg. Loans % % Purchase Sales % % Asia: Lower by $47MM due to lower NCLs in both Cards and Retail Banking Latin America: Improvement of $174MM primarily driven by Mexico Cards EMEA: Better by $58MM due to lower net LLR build in Retail Banking 6

8 Citicorp Securities and Banking ($MM) 4Q'09 3Q'09 % FY 2009 % Revenues Fixed Income Markets: Ex-CVA, Product Revenues Ex-CVA: down 36% QoQ, driven by overall Investment Banking $1,458 $1,163 25% $4,763 47% decline in volume and volatility Equity Markets 732 1,324 (45)% 5,373 97% Equity Markets: Ex-CVA, down 45% Fixed Income Markets 2,990 4,705 (36)% 21,075 56% QoQ, driven by overall decline in Lending volume and volatility (197) (699) 72% (2,153) NM Investment Banking: Up 25% QoQ, Private Bank % 2,098 (8)% with equity underwriting up $0.4B Other (194) (482) 60% (1,740) 18% and advisory up 13%. Ranked #3 in completed M&A for 2009 Regional Revenues Ex-CVA: (1) Lending: Revenue improvement North America $1,964 $2,160 (9)% $11,329 NM QoQ reflected lower CDS losses EMEA 1,718 2,746 (37)% 10,414 NM Private Bank: Capital markets Latin America % 2,842 NM revenues offset spread compression Asia 909 1,025 (11)% 4,832 NM Total Revenues Ex-CVA $5,353 $6,570 (19)% $29,416 23% Expenses Roughly flat QoQ; FY 09 down 17% CVA (1,897) (1,677) 13% (1,770) NM Revenues 3,457 4,893 (29)% 27,646 11% Expenses 3,473 3,493 (1)% 13,053 (17)% Credit Costs (86)% 1,711 (7)% Credit costs Down significantly reflecting continued stabilization of the corporate credit portfolio. NCLs declined $113MM QoQ; net LLR release of $118MM in the quarter Net Income $300 $737 (59)% $9,097 53% (1) CVA was primarily allocated to North America prior to 2009, hence the regional year on year comparison is not meaningful. Note: Totals may not sum due to rounding. 7

9 Citicorp Transaction Services ($MM) 4Q'09 3Q'09 % FY 2009 % Revenues Revenues North America EMEA $2, $2, % (1)% (1)% $9,789 2,526 3, (2)% 17% (8)% TTS: Down 2% QoQ due to low interest rate environment and spread compression Latin America % 1,373 (5)% SFS: Up 7% QoQ driven by gain on Asia % 2,501 (6)% sale of NikkoCiti Trust and improvement in market/volumes Expenses 1,212 1,141 6% 4,515 (12)% Expenses Credit Costs 8 (7) NM 7 (80)% N.I. from Cont. Ops. $919 $939 (2)% $3,736 11% North America (5)% % EMEA (2)% 1,287 3% Credit costs Latin America (1)% 604 3% Asia (2)% 1,230 3% QoQ growth of 6% driven by increased technology spending, higher volumes, and repositioning Stable with small LLR build Product Revenues: TTS 1,764 1,794 (2)% 7,101 7% Avg. deposits and other customer liability balances up 7% QoQ Q to $335B SFS % 2,688 (18)% Assets under custody flat QoQ Key Indicators: Avg. Deposits ($B) % EOP AUCs ($T) % 8

10 Citi Holdings Asset Summary EOP Assets ($B) 4Q 09 % Total $(351)B Brokerage & Asset Management $35 6% Morgan Stanley Smith Barney JV 26 5 Retail Alt. Inv. / Latam Asset Mgmt. 9 2 Local Consumer Lending $358 65% North America Mortgages Student 31 6 Cards (Retail Partners) 38 7 Personal & Other 25 5 Auto 14 3 Commercial lreal lestate t 11 2 Other (1) 13 2 EMEA 29 5 Asia 12 2 Special Asset Pool $154 28% Securities at AFS/HTM 48 9 Loans, Leases & LCs 33 6 Mark-to-Market 31 6 Other 42 8 Total $ % (1) Includes Primerica. Note: Totals may not sum due to rounding. 9

11 Holdings Brokerage & Asset Management EOP Assets ($B) Asset Composition $(33)B Retail Alternative Investments 8% 17% Latin America Asset Management 35 75% MS Smith Barney JV 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 (1) ($MM) 4Q'09 3Q'09 % 4Q'08 % Revenues QoQ decrease of $245MM, driven by absence of Revenues Expenses $ $ (37)% (2)% $1,472 2,699 (71)% (87)% Managed Futures gain recorded in 3Q 09 Expenses Credit Costs % 50 (24)% Net Income $89 $123 (28)% $(741) NM Key Indicators: EOP Deposits % 58 3% 4Q'08 NAM impairment charge of $0.9B Credit costs QoQ up $11MM, reflecting a net LLR release recorded in 3Q 09 YoY impact from absence of Smith Barney (1) Closing of the Nikko Cordial Securities and Nikko Asset Management transactions were the main drivers of the asset decrease. 10

12 Holdings Local Consumer Lending EOP Assets ($B) Asset Composition $(126)B Primerica International Student Loan Corp Retail Partners Cards CitiFinancial 9% 11% 3% 4% 11% 11% 4% 47% CRE CitiMortgage 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 Auto ($MM) 4Q'09 3Q'09 % 4Q'08 % Revenues $4,152 $4,647 (11)% $5,297 (22)% Expenses 2,685 2,611 3% 5,879 (54)% Credit Costs 5,769 5,805 (1)% 7,310 (21)% Net Income $(2,341) $(2,112) (11)% $(4,887) 52% Managed (1) Local Consumer Lending: Mgd. Revs 4,885 5, (13)% 6,121 (20)% Mgd. NCLs 5,738 6,066 (5)% 4,897 17% Revenues QoQ decline of 11% driven by NIM compression and lower balances Expenses QoQ increase of 3% reflects higher collections expense for N.A. residential mortgages and repositioning costs 4Q 08 goodwill impairment charge of $3.0B Credit costs QoQ decline in managed NCLs of 5%, driven by N.A. mortgages, Int l, and Retail Partners Cards (1) Managed metrics are non-gaap financial measures. Please see slide 39 for additional information on these metrics. 11

13 Holdings Special Asset Pool EOP Assets ($B) Asset Composition $(192)B Consumer & SMEs 4% Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 Equity 7% SIVs 10% Monolines 1% Highly Lev 2% Fin. Commit. Mark-to-Market 4% Other 31% 21% 20% Securities at AFS/HTM Loans, leases & Letters of Credit at HFI/HFS ($MM) 4Q'09 3Q'09 % 4Q'08 % Revenues $162 $1,377 (88)% $(11,732) NM Expenses (3)% 213 6% Credit Costs 793 1,066 (26)% 2,589 (69)% Net Income $(220) $122 NM $(8,788) 97% Adjusted Revenues: Net Marks 180 1,548 (88)% (11,582) NM Adj. Revs. (18) (171) 89% (150) 88% Revenues QoQ decline reflects lower positive net revenue marks. Credit Costs Sequential decline driven by lower NCLs and a net LLR release, reflecting continued stability in the corporate portfolio and declining volumes Assets Down $197B from peak in 4Q 07 Completed ~$10B asset sales at or above marks in the 4Q 12

14 Corporate / Other ($MM) 4Q'09 3Q'09 % 4Q'08 % Revenues $(10,986) $671 NM $(51) NM Net Income $(7,026) $102 NM $(774) NM Balance Sheet (EOP $B): Revenues included a $10.1B pre-tax loss from TARP repayment and exiting of loss-sharing agreement with USG 3Q 09 revenues included a $1.4B gain from exchange offers Assets (11)% 222 4% Cash and deposits with banks represent 48% Deposits (13)% 18 (28)% of Corporate / Other assets 13

15 Citigroup Provisions (1) ($B) (2) Net Credit Losses Loan Loss Reserves PB&C Corporate (0.1) 0.3 (0.3) Q'08 3Q'09 4Q' Consumer Q'08 3Q'09 4Q'09 1Q'08 Q08 2Q'08 Q08 3Q'08 4Q'08 Q08 1Q'09 Q09 2Q'09 Q09 3Q'09 4Q'09 Q09 (1) Provisions for Credit Losses and for Benefits and Claims. (2) Loan Loss Reserves include provision for unfunded lending commitments and credit reserve builds/releases. Note: Totals may not sum due to rounding. 14

16 Citigroup Consumer Credit Trends EOP Loans ($B) NCL Ratio Loan Loss Reserve Ratio 644% 670% 6.24% 6.44% 6.70% 5.29% 4.61% 3.83% 5.88% 5.73% 5.50% 3.15% 4.95% 262% 2.62% 412% 4.12% 3.57% 2.58% 2.95% Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 Note: The 2009 fourth quarter includes a reduction of approximately $335 million related to securitizations and approximately $400 million related to the sale or transfers to held-for-sale of U.S. Real Estate Lending Loans. NCLs as a % of average loans; Loan Loss Reserves as a % of EOP loans. 15

17 Citigroup Consumer Credit Coverage and Credit Losses 12.3 NCLs Holdings ($B) NCLs Citicorp ($B) Months of Coverage (1) Managed NCLs ($B) N.A N.A Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 3Q'09 4Q'09 Int l 2.1 (2) 8.9 Int l 1.9 (1) Months of coverage: current reserve balance / (current period net credit losses / 3). (2) Managed metrics are non-gaap financial measures. Please see slide 39 for additional information on these metrics. Note: SAP consumer NCLs booked in North America. Totals may not sum due to rounding. 16

18 Citigroup Int l Consumer Credit Trends ($B) Citicorp Asia Consumer Banking Citicorp Latin America Consumer Banking 90+DPD NCL 90+DPD NCL $1.06 $0.65 $0.94 $0.94 $0.48 $0.51 $0.57 $0.59 $0.87 $0.93 $0.92 $0.47 $0.48 $0.51 $0.81 $0.83 $0.35 $0.35 $0.56 $0.64 $0.31 $0.54 $0.54 $0.61 $0.66 $0.63 $0.21 $0.24 $0.26 $0.26 $0.27 $0.47 Avg. 3Q 09 4Q 09 Avg. 3Q 09 4Q 09 Loans $64.3 $67.2 Loans $28.8 $30.1 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 Citicorp EMEA Consumer Banking Holdings International ti LCL 90+DPD NCL 90+DPD NCL Avg. 3Q 09 4Q 09 Loans $8.7 $8.5 $0.05 $0.07 $0.07 $0.08 $0.11 $0.05 $ $0.06 $0.09 $0.09 $0.16 $0.15 $0.14 $0.12 $0.14 $0.14 $0.89 $0.66 $1.15 $0.99 $1.03 $1.36 $0.70 $0.74 $0.74 $0.83 $1.54 $1.45 $1.35 $0.98 $0.97 $0.80 Avg. 3Q 09 4Q 09 Loans $39.5 $36.3 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 17

19 Managed N.A. Cards Consumer Credit Trends Citicorp ($B) 90+DPD NCLs $1.42 $1.38 $1.00 $1.15 $1.51 $1.23 $1.81 $1.39 $2.09 $2.15 $1.69 $2.06 $2.08 $1.97 $2.14 $1.95 Avg. Mgd. Loans: (1) 3Q 09: $81.2 4Q 09: $81.7 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 Citi Holdings ($B) 90+DPD NCLs $2.13 $2.29 $2.13 $2.10 $2.18 $1.61 $1.56 $ $1.29 $1.73 $1.46 $1.62 $1.96 $2.15 $2.00 $1.96 Avg. Mgd. Loans: (1) 3Q 09: $59.8 4Q 09: $58.2 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 Unemployment Rate 5.1% 5.5% 6.1% 7.2% 8.5% 9.5% 9.8% 10.0% (1) Managed metrics are non-gaap financial measures. For additional information on these metrics please see pages 38 and 39 of Citigroup s 4Q 09 quarterly financial data supplement. 18

20 Citi Holdings N.A. Mortgage Credit Trends 1 st Mortgages ($B) Avg. Loans: 3Q 09: $ Q 09: $121.3 $3.48 $ DPD $5.26 NCLs $6.47 $8.09 $8.57 $10.57 $11.94 $0.36 $0.49 $0.75 $0.87 $1.00 $1.27 $1.10 $1.07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 2 nd Mortgages ($B) 90+DPD Avg. Loans: 3Q 09: $58.3 4Q 09: $56.0 $1.35 $1.18 $1.06 $0.52 $0.60 $0.66 NCLs $1.58 $0.80 $1.92 $1.92 $1.72 $1.16 $1.13 $0.93 $1.60 $0.99 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 S&P/Case-Shiller Home Price Index (1) (13.8)% (14.9)% (16.5)% (18.4)% (19.1)% (14.9)% (8.9)% n/a (1) Year-over-year change in the S&P Case-Shiller index of U.S. National Values. Fourth quarter 2009 not yet available. 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. 19

21 Citi Holdings N.A. Mortgage Delinquencies First Mortgage Delinquencies (1) ($B) Days Past Due: DPD Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 (1) 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. Note: Totals may not sum due to rounding. 20

22 Citigroup Assets (EOP $Tr) Citicorp Holdings Corp/Other Cash & Deposits with Banks % Assets 4.7% 5.4% 6.9% 10.3% 10.5% 11.3% 12.9% 10.4% Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 (1) Net Interest Revenue as a % of Average Interest-Earning Assets (NIM) 2.82% 3.17% 3.15% 3.26% 3.33% 3.24% 2.95% 2.65% (1) Preliminary. Note: Totals may not sum due to rounding. 21

23 Citigroup Key Capital Metrics Tier 1 Capital Total Capital Tier 1 Common (1) Tangible Common Equity (1) 15.7% 15.6% 16.6% 16.6% 15.3% 11.2% 7.7% 12.3% 8.7% 11.7% 82% 8.2% 11.9% 11.9% 12.7% 12.8% 10.3% 9.1% 11.7% 9.6% 10.9% 4.2% 4.4% 4.1% 4.3% 3.9% 3.7% 3.1% 3.0% 2.3% 2.2% 4.0% 2.7% 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 (2) (1) Tier 1 Common and Tangible Common Equity are non-gaap financial measures. Please see slide 40 for additional information on these metrics. (2) Preliminary. Based on information available as of December 31, 2009, on a pro forma basis the adoption of FAS 166/167 is expected to reduce 4Q 09 Tier 1 Capital by ~140 basis points, Total Capital by ~150 basis points, and Tier 1 Common by ~140 basis points. 22

24 Conclusions Repaid TARP and exited loss-sharing agreement Continue to make progress on our strategy Selective investments in Citicorp: Asia, Latin America, GTS Largest quarterly decrease in Citi Holdings assets; reduction of $351B since 1Q 08 Revenue growth in Asia and Latin America, clients remain engaged Sustained expense discipline Consumer credit costs: International trends continue to improve N.A. trends stabilizing; uncertain economic environment and future impact of forbearance programs Strong capital and liquidity 23

25 APPENDIX Table of Contents 25. Citigroup Deposits 26. Adjusted ROA 27. Citigroup Asset Transfer 28. Citigroup Int l Consumer Credit 29. Citicorp RCB Average Loans 30. Citi Holdings LCL Loan Composition 33. Citi Holdings SAP Assets (cont.) 34. Citicorp S&B Revenue Marks 35. Citi Holdings Revenue Marks 36. Citigroup Credit Value Adjustment 37. Summary of Press Release Disclosed Items Non-GAAP Financial Measures 31. Citi Holdings LCL International Average Loans 32. Citi Holdings SAP Assets 24

26 Citigroup Deposits (EOP $B) Citicorp Holdings Corp/Other Disc Ops Deposits % Loans (1) 113% 116% 108% 111% 122% 133% 142% 150% Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 (2) (1) Deposits as a percentage of net loans. (2) Preliminary. 25

27 Adjusted Return on Assets Regional Consumer Banking Avg ROA 2009 Avg. Mgd. (1) ROA ex-llr (2,3) ex-llr (4,5) Assets ($B) North thamerica Cards 2.1% 0.2% $86 Retail Banking International Cards 5.0% 1.5% $36 Retail Banking Securities & Banking 0.6% 1.4% $746 GTS 2.8% 6.1% $62 Citicorp 1.1% 1.6% $1,072 Corp/Other (6) NM (1.0)% $225 Total 0.9% 1.2% $1,297 (1) Managed metrics are non-gaap financial measures. Please see slide 41 for additional information on these metrics. (2) 2006 & 2007 exclude impact of loan loss reserve builds (LLR), tax affected at 35%; 2007 excludes impact of net revenue marks, tax affected at 35%. (3) 2006 average managed assets based on four point average of 1Q06-4Q06 EOP managed assets; 2007 average managed assets based on five point average of 4Q06-4Q07 EOP managed assets. (4) 2009 excludes impact of LLR, net revenue marks, TARP repayment and exiting of loss-sharing agreement and preferred exchange gain; marks & LLR tax affected at 35%. Preferred exchange pre-tax impact of $1.4B. TARP repayment and exiting of losssharing agreement pre-tax impact of ($10.1B). (5) 2009 average managed assets based on five point average of 4Q08-4Q09 EOP managed assets. (6) Corporate/Other includes Corporate Treasury (i.e. Citigroup funding expenses, funding costs for non-interest bearing assets), net expenses of global functions and intercompany eliminations. 26

28 Citigroup 1Q 10 Asset Transfer Estimated as of 12/31/09 Preliminary numbers Asset $B Transferred to Brokerage and Asset Management ~$5 Afore and Seguros Banamex 5 Regional Consumer Bnkg. Special Asset Pool ~$19 Securities & Loans 17 Securities and Banking Commercial Loans 2 Regional Consumer Bnkg. Local Consumer Lending ~$37 N.A. Mortgages 34 Regional Consumer Bnkg. Other 3 Regional Consumer Bnkg. Total ~$61 Assets in Conduits (off-balance sheet) ~$14 Securities and Banking Note: Totals may not sum due to rounding. 27

29 Citigroup Int l Consumer Credit 4Q 09 Citicorp Rank % of Total 90+DPD Ratio NCLRatio % of Total ANR ANRs 4Q 09 3Q 09 4Q 09 3Q 09 NCLs Korea % 0.3% 0.5% 0.9% 1.4% 4.3% Mexico Australia Singapore India Brazil Taiwan Malaysia Hong Kong Japan % 1.5% 1.5% 4.0% 4.5% 70.1% Citi Holdings UK % 6.1% 6.0% 6.0% 7.4% 21.4% Japan Spain Belgium Greece % 4.1% 3.9% 8.5% 9.6% 77.2% Note: For 4Q 09, Citicorp total ANR of $105.8B and total NCLs of $1.1B, Citi Holdings total ANR of $36.9B and total NCLs of $0.8B. 28

30 Citicorp RCB (1) Average Loans 4Q 09 North America (2) $89.0B EMEA $8.5B Cards Commercial Cards 3% 92% Banking 36% 1% Other 2% 2% Mortgages Personal Personal 38% 21% 4% Commercial Banking Other 1% Mortgages Latin America $30.1B Asia $67.2B Commercial 29% Cards 26% Banking 18% Commercial Banking Cards 40% 5% 10% Other Personal 12% 6% Other 16% Mortgages g 38% Personal Mortgages (1) Regional Consumer Banking. (2) Managed basis. Managed metrics are non-gaap financial measures. Please see slide 38 for additional information on these metrics. 29

31 Citi Holdings LCL Loan Composition 4Q 09 ($B) EOP Loans NCL % of Total 90+ 4Q 09 3Q 09 2Q 09 Ratio NCLs DPD% (1) N.A. Loans $260.3 $273.4 $ % 82.8% 6.55% First mortgages Second mortgages Student Cards (Retail Partners) Personal & Other Auto Commercial Real Estate t International $33.1 $37.3 $ % 17.2% 4.06% EMEA Asia Latin America Total $293.4 $310.7 $ % 100% 6.26% (1) Loans 90+ Days Past Due exclude U.S. mortgage loans that are guaranteed by U.S. government-sponsored agencies since the potential loss predominantly resides with the U.S. agencies. Note: Totals may not sum due to rounding. 30

32 Citi Holdings LCL International Avg. Loans 4Q 09 EMEA by Type Asia by Type Other 4% 36% Cards Personal 57% 1% Other 11% Commercial Personal 34% 26% Real Estate 31% Real Estate 4Q 09 Total: $26B 4Q 09 Total: $10B 31

33 Citi Holdings SAP Assets EOP Assets 4Q 09 ($B) Face EOP Assets 4Q 09 3Q 09 2Q 09 Value (% of Face) Securities at AFS/HTM (1) $ 47.9 $ 54.9 $ 64.7 $ % Corporates % Prime and Non-U.S. MBS % Auction Rate Securities % Alt-A mortgages % Government Agencies % Other Securities (2) % Loan, leases & LC at HFI/HFS (3) $ 33.1 $ 41.3 $ 44.6 NM NM Corporates % Commercial Real Estate % Other % Loan Loss Reserves (4.1) (4.0) (4.1) NM NM Mark-to-Market $ 30.7 $ 38.5 $ 42.1 NM NM Subprime securities % Other Securities (4) % Derivatives NM NM Loans, Leases and Letters of Credit % Repurchase agreements NM NM Highly Lev. Fin. Commitments $ 2.8 $ 3.5 $ % Equities (excludes ARS at AFS) $ 11.3 $ 12.9 $ 13.8 NM NM SIVs $ 16.0 $ 16.2 $ % Monolines $ 1.0 $ 1.3 $ 1.7 NM NM Consumer and Other (5) $ 11.6 $ $ 13.2 NM NM Total $ $ $ (1) AFS accounts for approximately 1/3 of the total. (2) Includes CRE ($2.1B), Municipals ($1.1B) and ABS ($1.5B). (3) HFS accounts for approximately $0.9B of the total. (4) Includes $1.9B of Corporates and $0.7 of CRE. (5) Includes $4.6B of Small Business Banking & Finance loans. Note: Totals may not sum due to rounding. 32

34 Citi Holdings SAP Assets 4Q 09 Commercial Real Estate: $25.4B Alt-A: $8.8B (1) HFI/HFS Loans 63% 9% 12% AFS/HTM Securities 3% MTM 06 Vintage 70% 27% 04 Vintage 05 Vintage 16% Equity Equities: $11.3B SIVs: $16.0B Hedge Funds 11% Private Equity 35% 18% 36% CRE Other Financial Institutions Debt (1) Composed of $8.7B in AFS and $0.1B in Trading. (2) No direct exposure to U.S. subprime assets and approximately $21 million of indirect exposure to subprime assets through CDOs. Structured Products (2) : 61% 21% MBS 39% 15% 8% Student Loans Credit Cards 7% CMBS 4% 6% CBOs/CLOs /CDOs Other 33

35 Citicorp S&B Revenue Marks ($MM) 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 MTM on sub-prime related direct exposures Monoline Credit Value Adjustment (CVA) MTM on highly lev d finance commitments MTM on Alt-AA mortgages (1) (216) (48) (221) (252) Mark to market on ARS MTM on CRE (18) (65) (32) 20 (22) MTM on SIVs CVA on Citi Liabilities at Fair Value Option (2) 1,279 (228) 1,526 1, (1,452) (955) (1,764) Derivatives CVA (3) (165) 48 1,178 (4,353) 2, (722) (133) PE & Equity Inv. (64) (6) (50) (257) (62) Gross Revenue Marks 816 (299) 2,564 (2,891) 2,712 (776) (1,436) (1,679) Non-credit Accretion (4) Net Revenue Marks 816 (299) 2,564 (2,891) 2,712 (776) (1,436) (1,679) (1) Net of hedges. (2) 4Q 09 includes $840 million adjustment to the CVA balance, reflecting correction of prior periods. (3) Includes Private Bank. (4) Booked in the net interest revenue line. Note: The revenue and (after-tax impact) of the Company's CVA correction, which reduced revenues and net income in the fourth quarter of 2009 by $840 million ($518 million), respectively related to the quarters in 2008 and 2009 as follows: $7 million ($4 million), $58 million ($36 million), $97 million ($60 million), and $44 million ($27 million), for the first, second, third and fourth quarters of 2008, respectively, and $198 million ($122 million), $115 million ($71 million) and $197 million ($121 million) for the first, second and third quarters of 2009, respectively. The revenue impact and (after-tax impact) of the Company's CVA correction related to 2007 was $124 million ($77 million). Excludes Discontinued Operations. 34 Note: Totals may not sum due to rounding.

36 Citi Holdings Revenue Marks ($MM) 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 MTM on sub-prime related direct exposures (1) (5,912) (3,395) (394) (4,582) (2,296) 613 1, Monoline Credit Value Adjustment (CVA) (1,491) (2,428) (920) (897) (1,090) 157 (61) (306) MTM on highly lev d finance commitments (2) (3,078) (428) (792) (594) (247) (237) (24) (13) MTM on Alt-AA mortgages (3, 4) (799) (277) (932) (1,067) (503) (390) (196) (362) Mark to market on ARS (4) (1,457) 197 (166) (306) (23) MTM on CRE (3, 5, 6) (555) (480) (649) (1,214) (387) (354) (594) (191) MTM on SIVs (212) 11 (2,004) (1,064) (47) 50 (40) (43) CVA on Citi Liabilities at Fair Value Option (18) (156) (64) (14) Derivatives CVA (102) 52 (64) (945) PE & Equity Inv. (7) (129) 183 (430) (1,820) (1,117) (37) (20) 26 Gross Revenue Marks (13,735) (6,565) (6,351) (12,256) (5,414) 451 1,011 (254) Non-credit Accretion (8) Net Revenue Marks (13,735) (6,565) (6,351) (12,066) (4,873) 952 1, Note: All marks booked in SAP unless otherwise stated. Excludes Discontinued Operations. (1) Net of impact from hedges against direct subprime ABS CDO super senior positions. (2) Net of underwriting fees. (3) Net of hedges. (4) Excludes writedowns of $306 million in 3Q 08, $87 million in 4Q 08, $3 million in 1Q 09, $3 million in 2Q 09, $6 million in 4Q 09 and $6.3 million gain in 3Q 09 arising from the ARS legal settlements. (5) Excludes positions in SIVs. (6) 4Q 09: $8 million booked in BAM, $(199) million booked in SAP. (7) 4Q 09: $8 million booked in BAM, $18 million in SAP. (8) Booked in the net interest revenue line. Note: Totals may not sum due to rounding. 35