UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2015

Commission file number 1-9924

Citigroup Inc.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization)	52-1568099 (I.R.S. Employer Identification No.)
399 Park Avenue, New York, NY (Address of principal executive offices)	10022 (Zip code)
(212) 559-1000 (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x    No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer x Accelerated filer o Non-accelerated filer o  (Do not check if a smaller reporting company) Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o    No x

Number of shares of Citigroup Inc. common stock outstanding on June 30, 2015: 3,009,845,273

Available on the web at www.citigroup.com

CITIGROUP INC SECOND QUARTER 2015—FORM 10-Q

OVERVIEW	2
MANAGEMENT'S DISCUSSION AND   ANALYSIS OF FINANCIAL CONDITION AND   RESULTS OF OPERATIONS	4
Executive Summary	4
Summary of Selected Financial Data	7
SEGMENT AND BUSINESS—INCOME (LOSS)   AND REVENUES	9
CITICORP	12
Global Consumer Banking (GCB)	13
North America GCB	15
Latin America GCB	17
Asia GCB	19
Institutional Clients Group	21
Corporate/Other	25
CITI HOLDINGS	26
BALANCE SHEET REVIEW	28
OFF-BALANCE SHEET   ARRANGEMENTS	31
CAPITAL RESOURCES	32
Overview
Capital Management
Current Regulatory Capital Standards
Basel III (Full Implementation)
Regulatory Capital Standards Developments
Tangible Common Equity, Tangible Book Value           Per Share and Book Value Per Share
Managing Global Risk Table of Contents—   Credit, Market (Including Funding and Liquidity),   and Country and Cross-Border Risk Sections	51
MANAGING GLOBAL RISK	52
INCOME TAXES	95
DISCLOSURE CONTROLS AND PROCEDURES	96
DISCLOSURE PURSUANT TO SECTION 219 OF THE IRAN THREAT REDUCTION AND SYRIA HUMAN RIGHTS ACT	96
FORWARD-LOOKING STATEMENTS	97
FINANCIAL STATEMENTS AND NOTES   TABLE OF CONTENTS	100
CONSOLIDATED FINANCIAL STATEMENTS	101
NOTES TO CONSOLIDATED FINANCIAL   STATEMENTS	110
Legal Proceedings (See Note 25 to the      Consolidated Financial Statements)
UNREGISTERED SALES OF EQUITY,   PURCHASES OF EQUITY SECURITIES,   DIVIDENDS	231

1

OVERVIEW

This Quarterly Report on Form 10-Q should be read in conjunction with Citigroup’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the U.S. Securities and Exchange Commission (SEC) on February 25, 2015, including the historical audited consolidated financial statements of Citigroup reflecting the adoption of an accounting change (See Note 1 to the Consolidated Financial Statements) and certain realignments and reclassifications set forth in Citigroup’s Current Report on Form 8-K filed with the SEC on May 27, 2015 (2014 Annual Report on Form 10-K), and Citigroup’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 filed with the SEC on May 11, 2015 (First Quarter of 2015 Form 10-Q).

Additional information about Citigroup is available on Citi’s website at www.citigroup.com. Citigroup’s recent annual reports on Form 10-K, quarterly reports on Form 10-Q, proxy statements, as well as other filings with the SEC, are available free of charge through Citi’s website by clicking on the “Investors” page and selecting “All SEC Filings.” The SEC’s website also contains current reports, information statements, and other information regarding Citi at www.sec.gov.

Certain other reclassifications, have been made to the prior periods’ presentation.

Throughout this report, “Citigroup,” “Citi” and “the Company” refer to Citigroup Inc. and its consolidated subsidiaries.

2

Citigroup is managed pursuant to the following segments:

(1) For reporting purposes, Asia GCB includes the results of operations of EMEA GCB for all periods presented.

Note: Reflects recent business reclassifications. See “Overview” above for additional information.

The following are the four regions in which Citigroup operates. The regional results are fully reflected in the segment results above.

3

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

EXECUTIVE SUMMARY

Second Quarter of 2015—Continued Progress on Execution Priorities

Citi’s second quarter of 2015 reflected solid overall results and steady progress on its execution priorities, including:

• Efficient resource allocation and disciplined expense management: Citi maintained disciplined expense management during the second quarter of 2015, even as it absorbed increased regulatory and compliance costs in Citicorp. Citi’s expense management in the current quarter was further aided by lower legal and related expenses and lower repositioning expenses in Citicorp as compared to the prior-year period, as discussed further below.

• Continued wind down of Citi Holdings, while maintaining profitability: Citi continued to wind down Citi Holdings, including reducing its assets by $32 billion, or 22%, from the prior-year period. In addition, as previously announced, Citi currently has executed agreements to sell approximately $32 billion of the remaining assets in Citi Holdings, including OneMain Financial, the largest business remaining in Citi Holdings, subject to regulatory approvals and other closing conditions. As discussed further below, Citi Holdings also maintained profitability in the second quarter of 2015.

• Utilization of deferred tax assets (DTAs): Citi utilized approximately $1.5 billion in DTAs during the first half of 2015, including approximately $300 million during the second quarter of 2015 (for additional information, see “Income Taxes” below).

While continuing to make progress on these initiatives in the first half of 2015, Citi expects the operating environment during the remainder of 2015 to remain challenging. Overall, economic growth remains uneven across the developed and emerging markets and uncertainty continues as to when interest rates may begin to rise. For more information on these and other trends and risks that could impact Citi’s businesses, results of operations and financial condition, see the discussion of each businesses’ results of operations, “Forward-Looking Statements” and Note 25 to the Consolidated Financial Statements below, as well as the “Risk Factors” section of Citi’s 2014 Annual Report on Form 10-K.

Second Quarter of 2015 Summary Results

Citigroup

Citigroup reported net income of $4.8 billion or $1.51 per diluted share, compared to $181 million or $0.03 per share in the prior-year period. Results in the second quarter of 2015 included $312 million ($196 million after-tax) of CVA/DVA, compared to negative $33 million (negative $20 million after-tax) in the second quarter of 2014. Second quarter of 2014 results also included the impact of a $3.8 billion charge, which

consisted of $3.7 billion of legal expenses and a $55 million loan loss reserve build ($3.7 billion after-tax), to settle legacy RMBS and CDO-related claims, recorded in Citi Holdings.

Excluding these items, Citi reported net income of $4.7 billion in the second quarter of 2015, or $1.45 per diluted share, compared to $3.9 billion, or $1.24 per share, in the prior-year period. The 18% increase from the prior-year period was primarily driven by lower expenses, lower net credit losses and a lower effective tax rate (for additional information, see “Income Taxes” below), partially offset by lower revenues and a reduced net loan loss reserve release. (Citi’s results of operations excluding the impacts of CVA/DVA and the mortgage settlement are non-GAAP financial measures.)

Citi’s revenues, net of interest expense, were $19.5 billion in the second quarter of 2015, approximately unchanged versus the prior-year period. Excluding CVA/DVA, revenues were $19.2 billion, down 2% from the prior-year period, as Citicorp revenues were approximately unchanged and Citi Holdings revenues decreased 16%. Excluding CVA/DVA and the impact of foreign exchange translation into U.S. dollars for reporting purposes (FX translation), Citigroup revenues increased 3% from the prior-year period, as 5% growth in Citicorp revenues was partially offset by the decrease in Citi Holdings revenues. (Citi’s results of operations excluding the impact of FX translation are non-GAAP financial measures.)

Expenses

Citigroup expenses decreased 30% versus the second quarter of 2014 to $10.9 billion. Excluding the impact of the mortgage settlement in the prior-year period, expenses fell 7%, mainly driven by lower legal and related expenses ($360 million compared to $402 million in the prior-year period) and repositioning costs ($61 million compared to $397 million in the prior-year period), as well as the impact of FX translation (which lowered expenses by approximately $681 million in the second quarter of 2015 compared to the prior-year period). Excluding the impact of FX translation, Citigroup’s expenses declined 1%, mainly driven by the lower legal and related expenses and repositioning costs.

Excluding the impact of FX translation, which lowered reported expenses by approximately $609 million in the second quarter of 2015 compared to the prior-year period, Citicorp expenses decreased 1%, as ongoing efficiency savings and lower legal and related expenses and repositioning costs were largely offset by higher regulatory and compliance costs. Citicorp expenses in the second quarter of 2015 included legal and related expenses of $297 million, compared to $387 million in the prior-year period, and $34 million of repositioning charges, compared to $354 million in the prior-year period.

Citi Holdings’ expenses were $1.1 billion, down 78% from the prior-year period. Excluding the impact of the mortgage settlement, Citi Holdings’ expenses decreased 13% from the prior-year period, primarily driven by the ongoing decline in Citi Holdings assets.

4

Credit Costs and Allowance for Loan Losses

Citi’s total provisions for credit losses and for benefits and claims of $1.6 billion declined 5% from the prior-year period.

Excluding the impact of the mortgage settlement, Citi’s total provisions for credit losses and for benefits and claims declined 2% as a lower net loan loss reserve release was more than offset by lower net credit losses, which declined 12% versus the prior-year period. The decline in net credit losses year-over-year included the impact of classifying OneMain Financial as held-for-sale at the end of the first quarter of 2015. As a result of the held-for-sale accounting treatment, approximately $160 million of OneMain Financial net credit losses were recorded as a reduction in revenue in Citi Holdings during the second quarter of 2015. Excluding the impact of the held-for-sale accounting treatment relating to OneMain Financial, net credit losses of $2.1 billion declined 5% versus the prior-year period.

Consumer net credit losses declined 17% to $1.8 billion, reflecting continued improvements in both North America Citi-branded cards and Citi retail services in Citicorp and the North America mortgage portfolio within Citi Holdings, as well as the impact of the OneMain Financial classification referenced above. Corporate net credit losses increased to $106 million from $11 million in the prior-year period. The increase related to a limited number of corporate loans, with the vast majority of these net credit losses offset by the release of related, previously-established loan loss reserves.

The net release of allowance for loan losses and unfunded lending commitments was $453 million in the second quarter of 2015, compared to a $641 million release in the prior-year period. Excluding the impact of the mortgage settlement, the net release of allowance for loan losses and unfunded lending commitments was $453 million compared to $696 million in the prior-year period. Citicorp’s net reserve release declined to $282 million from $426 million in prior-year period due to a lower reserve release in North America Global Consumer Banking (GCB), as credit continued to stabilize, partially offset by a larger net reserve release in Institutional Clients Group (ICG), driven by previously-mentioned loan loss reserve releases as well as improvement in the overall corporate portfolio.Citi Holdings’ net reserve release decreased 20% to $171 million. Excluding the impact of the mortgage settlement, Citi Holdings’ net reserve release decreased 37% to $171 million, primarily due to lower releases related to the North America mortgage portfolio, which also had lower net credit losses.

For additional information on Citi’s credit costs and allowance for loan losses, including delinquency trends in its credit portfolios, see “Credit Risk” below. Overall, Citi continues to expect its credit costs could increase during the remainder 2015, driven by loan growth as well as lower loan loss reserve releases.

Capital

Citi continued to grow its regulatory capital during the second quarter of 2015, even as it returned approximately $1.7 billion of capital to its shareholders in the form of common stock repurchases and increased dividends. Citigroup’s Tier 1 Capital and Common Equity Tier 1 Capital ratios, on a fully

implemented basis, were 12.5% and 11.4% as of June 30, 2015, respectively, compared to 11.3% and 10.6% as of June 30, 2014 (all based on the Basel III Advanced Approaches for determining risk-weighted assets). Citigroup’s Supplementary Leverage ratio as of June 30, 2015, on a fully implemented basis, was 6.7%, compared to 5.8% as of June 30, 2014. For additional information on Citi’s capital ratios and related components, including the impact of Citi’s DTAs on its capital ratios, see “Capital Resources” and “Income Taxes” below.

Citicorp

Citicorp net income increased 27% from the prior-year period to $4.7 billion. CVA/DVA, recorded in ICG,was $303 million ($190 million after-tax) in the second quarter of 2015, compared to negative $32 million (negative $20 million after-tax) in the prior-year period (for a summary of CVA/DVA by business within ICG, see “Institutional Clients Group” below).

Excluding CVA/DVA, Citicorp’s net income was $4.5 billion, up 22% from the prior-year period, primarily driven by lower expenses, lower net credit losses and a lower effective tax rate, partially offset by a lower net loan loss reserve release.

Citicorp revenues, net of interest expense, increased 2% from the prior-year period to $17.8 billion. Excluding CVA/DVA, Citicorp revenues were $17.5 billion in the second quarter of 2015, approximately unchanged from the prior-year period. As referenced above, excluding CVA/DVA and the impact of FX translation, Citicorp’srevenues grew 5%, mostly driven by growth in ICG.

GCB revenues of $8.5 billion decreased 4% versus the prior-year period. Excluding the impact of FX translation, GCB revenues increased 1%, driven by growth in North America GCB and Latin America GCB. North America GCB revenues increased 1% to $4.8 billion as higher retail banking revenues were largely offset by lower revenues in Citi-branded cards. Retail banking revenues increased 11% to $1.3 billion versus the prior-year period, reflecting continued volume growth, higher mortgage origination activity and improved deposit spreads. Citi-branded cards revenues of $1.9 billion were down 5% versus the prior-year period, as the continued impact of lower average loans was partially offset by the impact of 5% growth in purchase sales and an improvement in spreads. Citi retail services revenues were unchanged at $1.6 billion, as spread improvements were offset by the continued impact of lower fuel prices and higher contractual partner payments. North America GCB average deposits of $171 billion were unchanged year-over-year and average retail loans of $49 billion grew 7%. Average card loans of $106 billion decreased 3%, while purchase sales of $66 billion increased 3% versus the prior-year period. For additional information on the results of operations of North America GCB for the second quarter of 2015, see “Global Consumer Banking-North America GCB” below.

International GCB revenues (consisting of EMEA GCB, Latin America GCB and Asia GCB) decreased 10% versus the prior-year period to $3.7 billion. Excluding the impact of FX translation, international GCB revenues increased 1% versus the prior-year period, reflecting a 3% increase in revenues in Latin America GCB and relatively unchanged revenues in Asia GCB (for the impact of FX translation on the second quarter of

5

2015 results of operations for each of Latin America GCB and Asia GCB, see the table accompanying the discussion of each respective business’ results of operations below). International GCB revenues, excluding the impact of FX translation, mainly reflected modest volume-related growth in Mexico and growth in retail banking (including wealth management) in Asia GCB, partiallyoffset by lower cards revenues and the ongoing impact of regulatory changes in Asia GCB, as well as the impact of the sale of Citi’s consumer business in Honduras in Latin America GCB in the prior-year period. For additional information on the results of operations of Latin America GCB and Asia GCB (which includes the results of operations of EMEA GCB for reporting purposes) for the second quarter of 2015,see “Global Consumer Banking” below. Year-over-year, international GCB average deposits of $131 billion increased 4%, average retail loans of $101 billion increased 3%, investment sales of $23 billion increased 13%, average card loans of $27 billion increased 2% and card purchase sales of $26 billion increased 5%, all excluding the impact of FX translation.

ICG revenues were $8.9 billion in the second quarter of 2015, up 6% from the prior-year period. Excluding CVA/DVA, ICG revenues were $8.6 billion, up 2% from the prior-year period. Banking revenues of $4.4 billion, excluding CVA/DVA and the impact of mark-to-market losses on hedges related to accrual loans within corporate lending (see below), were largely unchanged from the prior-year period, as growth in the private bank was offset by lower underwriting activity within investment banking as well as the impact of FX translation. Investment banking revenues decreased 4% versus the prior-year period, as a 34% increase in advisory revenues to $258 million was more than offset by a 3% decrease in debt underwriting revenues to $729 million, and a 25% decrease in equity underwriting revenues to $296 million. Private bank revenues, excluding CVA/DVA, increased 13% to $746 million from the prior-year period, driven by increased loan and deposit balances and growth in investments and capital markets products.

Corporate lending revenues declined 8% to $379 million, including $66 million of mark-to-market losses on hedges related to accrual loans, compared to a $44 million loss in the prior-year period. Excluding the mark-to-market impact on hedges related to accrual loans in both periods, corporate lending revenues declined 2% versus the prior-year period to $445 million. Excluding the impact of FX translation, corporate lending revenues increased 4% year-over-year, as higher volumes were partially offset by lower spreads. Treasury and trade solutions revenues decreased 1% versus the prior-year period to $2.0 billion. Excluding the impact of FX translation, treasury and trade solutions revenues increased 5%, as continued growth in deposit balances and spreads was partially offset by lower trade revenues.

Markets and securities services revenues of $4.2 billion, excluding CVA/DVA, increased 4% from the prior-year period. Fixed income markets revenues of $3.1 billion, excluding CVA/DVA, decreased 1% from the prior-year period, as continued strength in rates and currencies revenues was more than offset by lower revenues in spread products. Equity markets revenues of $653 million, excluding CVA/

DVA, decreased 1% versus the prior year period. The second quarter of 2015 included a charge of $175 million for valuation adjustments related to certain financing transactions. Excluding these adjustments, equity markets revenues would have increased by 26%, mostly reflecting improvement in derivatives. Securities services revenues of $557 million increased 7% versus the prior-year period reflecting increased activity and higher client balances, partially offset by the impact of FX translation. For additional information on the results of operations of ICG for the second quarter of 2015, including the impact of CVA/DVA on the applicable businesses, see “Institutional Clients Group” below.

Corporate/Other revenues were $370 million, a $281 million increase from the prior-year period primarily driven by gains on debt buybacks and real estate sales in the current quarter, partially offset by hedging activities. For additional information on the results of operations of Corporate/Other for the second quarter of 2015, see “Corporate/Other” below.

Citicorp end-of-period loans decreased 1% from the prior-year period to $573 billion, as consumer loans decreased 4% while corporate loans increased 2%. Excluding the impact of FX translation, Citicorp loans grew 4%, with 6% growth in corporate loans and 1% growth in consumer loans.

Citi Holdings

Citi Holdings’ net income was $163 million in the second quarter of 2015, compared to a net loss of $3.5 billion in the prior-year period. CVA/DVAwas $9 million ($6 million after-tax) in the second quarter of 2015, compared to negative $1 million in the prior-year period. Excluding the impact of CVA/DVA in both periods and the impact of the mortgage settlement in the prior-year period, Citi Holdings’ net income was $157 million in the current quarter, compared to $234 million in the prior-year period, primarily reflecting lower revenues, partially offset by the lower expenses and lower credit costs.

Citi Holdings’ revenues decreased 16% to $1.7 billion from the prior-year period, primarily driven by the overall wind down of the portfolio as well as the impact of the previously-referenced recording of OneMain Financial net credit losses as a reduction in revenue. For additional information on the results of operations of Citi Holdings in the second quarter of 2015, see “Citi Holdings” below.

At the end of the current quarter, Citi Holdings’ assets were $116 billion, 22% below the prior-year period, and represented approximately 6% of Citi’s total GAAP assets and 13% of its risk-weighted assets under Basel III (based on the Advanced Approaches for determining risk-weighted assets).

6

RESULTS OF OPERATIONS

SUMMARY OF SELECTED FINANCIAL DATA—PAGE 1

Citigroup Inc. and Consolidated Subsidiaries

	Second Quarter							Six Months
In millions of dollars, except per-share amounts and ratios	2015		2014			% Change		2015		2014		% Change
Net interest revenue	$	11,822	$	11,946		(1	)%	$	23,394	$	23,705	(1	)%
Non-interest revenue	7,648		7,479			2		15,812		15,926		(1	)%
Revenues, net of interest expense	$	19,470	$	19,425		—	%	$	39,206	$	39,631	(1	)%
Operating expenses	10,928		15,521			(30	)	21,812		27,670		(21	)%
Provisions for credit losses and for benefits and claims	1,648		1,730			(5	)	3,563		3,704		(4	)%
Income from continuing operations before income taxes	$	6,894	$	2,174		NM		$	13,831	$	8,257	68	%
Income taxes	2,036		1,921			6		4,156		4,052		3	%
Income from continuing operations	$	4,858	$	253		NM		$	9,675	$	4,205	NM
Income (loss) from discontinued operations, net of taxes (1)	6		(22		)	NM		1		15		(93	)%
Net income before attribution of noncontrolling interests	$	4,864	$	231		NM		$	9,676	$	4,220	NM
Net income attributable to noncontrolling interests	18		50			(64	)	60		95		(37	)%
Citigroup’s net income	$	4,846	$	181		NM		$	9,616	$	4,125	NM
Less:
Preferred dividends-Basic	$	202	$	100		NM		$	330	$	224	47	%
Dividends and undistributed earnings allocated to employee restricted and deferred shares that contain nonforfeitable rights to dividends, applicable to basic EPS	64		1			NM		126		64		97	%
Income allocated to unrestricted common shareholders for basic and diluted EPS	$	4,580	$	80		NM		$	9,160	$	3,837	NM
Earnings per share
Basic
Income from continuing operations	$	1.51	$	0.03		NM		$	3.03	$	1.26	NM
Net income	1.52		0.03			NM		3.03		1.26		NM
Diluted
Income from continuing operations	$	1.51	$	0.03		NM		$	3.02	$	1.26	NM
Net income	1.51		0.03			NM		3.02		1.26		NM
Dividends declared per common share	0.05		0.01			NM		0.06		0.02		NM

Statement continues on the next page, including notes to the table.

7

SUMMARY OF SELECTED FINANCIAL DATA—PAGE 2

	Citigroup Inc. and Consolidated Subsidiaries
	Second Quarter								Six Months
In millions of dollars, except per-share amounts, ratios and direct staff	2015			2014			% Change		2015		2014		% Change
At June 30:
Total assets	$	1,829,370		$	1,909,369		(4	)%
Total deposits (2)	908,037			965,725			(6	)
Long-term debt	211,845			226,984			(7	)
Citigroup common stockholders’ equity	205,472			202,048			2
Total Citigroup stockholders’ equity	219,440			211,016			4
Direct staff (in thousands)	237			244			(3	)
Performance metrics
Return on average assets	1.06		%	0.04		%			1.05	%	0.44	%
Return on average common stockholders’ equity (3)	9.1			0.2					9.2		7.0
Return on average total stockholders’ equity (3)	8.9			0.3					9.0		6.9
Efficiency ratio (Operating expenses/Total revenues)	56			80					56		70
Basel III ratios - full implementation
Common Equity Tier 1 Capital (4)	11.37		%	10.57		%
Tier 1 Capital (4)	12.54			11.35
Total Capital (4)	14.14			12.70
Supplementary Leverage ratio (5)	6.72			5.82
Citigroup common stockholders’ equity to assets	11.23		%	10.58		%
Total Citigroup stockholders’ equity to assets	12.00			11.05
Dividend payout ratio (6)	3			33
Book value per common share	$	68.27		$	66.64		2	%
Ratio of earnings to fixed charges and preferred stock dividends	3.05x			1.57x					3.09x		2.08x

(1) Discontinued operations include Credicard, Citi Capital Advisors and Egg Banking credit card business. See Note 2 to the Consolidated Financial Statements for additional information on Citi’s discontinued operations.

(2) Reflects reclassification of approximately $20 billion of deposits to held-for-sale (Other liabilities) at June 30, 2015 as a result of the agreement in December 2014 to sell Citi’s retail banking business in Japan. See Note 2 to the Consolidated Financial Statements.

(3) The return on average common stockholders’ equity is calculated using net income less preferred stock dividends divided by average common stockholders’ equity. The return on average total Citigroup stockholders’ equity is calculated using net income divided by average Citigroup stockholders’ equity.

(4) Capital ratios based on the U.S. Basel III rules, with full implementation assumed for capital components; risk-weighted assets based on the Advanced Approaches for determining total risk-weighted assets. See “Capital Resources” below.

(5) Citi’s Supplementary Leverage ratio (SLR) is based on the U.S. Basel III rules, on a fully-implemented basis. Citi’s SLR represents the ratio of Tier 1 Capital to Total Leverage Exposure (TLE). TLE is the sum of the daily average of on-balance sheet assets for the quarter and the average of certain off-balance sheet exposures calculated as of the last day of each month in the quarter, less applicable Tier 1 Capital deductions. See “Capital Resources” below.

(6) Dividends declared per common share as a percentage of net income per diluted share.

NM Not meaningful

8

SEGMENT AND BUSINESS—INCOME (LOSS) AND REVENUES

The following tables show the income (loss) and revenues for Citigroup on a segment and business view:

CITIGROUP INCOME

	Second Quarter					% Change		Six Months					% Change
In millions of dollars	2015		2014					2015		2014
Income (loss) from continuing operations
CITICORP
Global Consumer Banking
North America	$	1,067	$	1,074		(1	)%	$	2,207	$	2,092		5	%
Latin America	225		275			(18	)	469		566			(17	)
Asia (1)	338		214			58		679		579			17
Total	$	1,630	$	1,563		4	%	$	3,355	$	3,237		4	%
Institutional Clients Group
North America	$	978	$	1,096		(11	)%	$	1,993	$	2,401		(17	)%
EMEA	684		570			20		$	1,541	$	1,362		13	%
Latin America	470		427			10		883		767			15
Asia	703		473			49		1,382		984			40
Total	$	2,835	$	2,566		10	%	$	5,799	$	5,514		5	%
Corporate/Other	$	230	$	(384	)	NM		$	211	$	(772	)	NM
Total Citicorp	$	4,695	$	3,745		25	%	$	9,365	$	7,979		17	%
Citi Holdings	$	163	$	(3,492	)	NM		$	310	$	(3,774	)	NM
Income from continuing operations	$	4,858	$	253		NM		$	9,675	$	4,205		NM
Discontinued operations	$	6	$	(22	)	NM		$	1	$	15		(93	)%
Net income attributable to noncontrolling interests	18		50			(64	)%	60		95			(37	)%
Citigroup’s net income	$	4,846	$	181		NM		$	9,616	$	4,125		NM

(1) For reporting purposes, Asia GCB includes the results of operations of EMEA GCB for all periods presented.

NM Not meaningful

9

CITIGROUP REVENUES

	Second Quarter				% Change		Six Months				% Change
In millions of dollars	2015		2014				2015		2014
CITICORP
Global Consumer Banking
North America	$	4,823	$	4,787	1	%	$	9,817	$	9,577	3	%
Latin America	1,848		2,136		(13	)	3,683		4,219		(13	)
Asia (1)	1,878		2,021		(7	)	3,711		3,992		(7	)
Total	$	8,549	$	8,944	(4	)%	$	17,211	$	17,788	(3	)%
Institutional Clients Group
North America	$	3,285	$	3,154	4	%	$	6,588	$	6,715	(2	)%
EMEA	2,543		2,430		5		5,306		5,201		2
Latin America	1,111		1,149		(3	)	2,176		2,250		(3	)
Asia	1,939		1,669		16		3,836		3,390		13
Total	$	8,878	$	8,402	6	%	$	17,906	$	17,556	2	%
Corporate/Other	$	370	$	89	NM		$	582	$	312	87	%
Total Citicorp	$	17,797	$	17,435	2	%	$	35,699	$	35,656	—	%
Citi Holdings	$	1,673	$	1,990	(16	)%	$	3,507	$	3,975	(12	)%
Total Citigroup net revenues	$	19,470	$	19,425	—	%	$	39,206	$	39,631	(1	)%

(1) For reporting purposes, Asia GCB includes the results of operations of EMEA GCB for all periods presented.

NM Not meaningful.

10

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11

CITICORP

Citicorp is Citigroup’s global bank for consumers and businesses and represents Citi’s core franchises. Citicorp is focused on providing best-in-class products and services to customers and leveraging Citigroup’s unparalleled global network, including many of the world’s emerging economies. Citicorp is physically present in approximately 100 countries, many for over 100 years, and offers services in over 160 countries and jurisdictions. Citi believes this global network provides a strong foundation for servicing the broad financial services needs of its large multinational clients and for meeting the needs of retail, private banking, commercial, public sector and institutional clients around the world.

Citicorp consists of the following operating businesses: Global Consumer Banking (which consists of consumer banking in North America, Latin America, EMEA and Asia) and Institutional Clients Group (which includes Banking and Markets and securities services). Citicorp also includes Corporate/Other. At June 30, 2015, Citicorp had $1.7 trillion of assets and $900 billion of deposits, representing 94% of Citi’s total assets and 99% of Citi’s total deposits, respectively.

	Second Quarter								Six Months						% Change
In millions of dollars except as otherwise noted	2015			2014			% Change		2015			2014
Net interest revenue	$	10,821		$	10,709		1	%	$	21,338		$	21,292		—	%
Non-interest revenue	6,976			6,726			4		14,361			14,364			—
Total revenues, net of interest expense	$	17,797		$	17,435		2	%	$	35,699		$	35,656		—	%
Provisions for credit losses and for benefits and claims
Net credit losses	$	1,662		$	1,747		(5	)%	$	3,211		$	3,613		(11	)%
Credit reserve build (release)	(235		)	(398		)	41		(241		)	(698		)	65
Provision for loan losses	$	1,427		$	1,349		6	%	$	2,970		$	2,915		2	%
Provision for benefits and claims	21			26			(19	)	49			67			(27	)
Provision for unfunded lending commitments	(47		)	(28		)	(68	)	(79		)	(51		)	(55	)
Total provisions for credit losses and for benefits and claims	$	1,401		$	1,347		4	%	$	2,940		$	2,931		—	%
Total operating expenses	$	9,824		$	10,499		(6	)%	$	19,551		$	20,630		(5	)%
Income from continuing operations before taxes	$	6,572		$	5,589		18	%	$	13,208		$	12,095		9	%
Income taxes	1,877			1,844			2		3,843			4,116			(7	)
Income from continuing operations	$	4,695		$	3,745		25	%	$	9,365		$	7,979		17	%
Income (loss) from discontinued operations, net of taxes	6			(22		)	NM		1			15			(93	)
Noncontrolling interests	18			50			(64	)	59			93			(37	)
Net income	$	4,683		$	3,673		27	%	$	9,307		$	7,901		18	%
Balance sheet data (in billions of dollars)
Total end-of-period (EOP) assets	$	1,713		$	1,761		(3	)%
Average assets	1,722			1,755			(2	)	1,725			1,746			(1	)
Return on average assets	1.09		%	0.84		%			1.09		%	0.91		%
Efficiency ratio	55		%	60		%			55			58
Total EOP loans	$	573		$	578		(1	)
Total EOP deposits	$	900		$	913		(1	)

NM Not meaningful

12

GLOBAL CONSUMER BANKING

Global Consumer Banking (GCB) consists of Citigroup’s four geographical consumer bankingbusinesses that provide traditional banking services to retail customers through retail banking, commercial banking, Citi-branded cards and Citi retail services (for additional information on these businesses, see “Citigroup Segments” above). GCB is a globally diversified business with 3,015 branches in 24 countries around the world as of June 30, 2015. At June 30, 2015, GCB had $395 billion of assets and $305 billion of deposits.

GCB’s overall strategy is to leverage Citi’s global footprint and seek to be the preeminent bank for the emerging affluent and affluent consumers in large urban centers. In credit cards and in certain retail markets, Citi serves customers in a somewhat broader set of segments and geographies.

	Second Quarter								Six Months
In millions of dollars except as otherwise noted	2015			2014			% Change		2015			2014			% Change
Net interest revenue	$	6,692		$	6,933		(3	)%	$	13,393		$	13,734		(2	)%
Non-interest revenue	1,857			2,011			(8	)	3,818			4,054			(6	)
Total revenues, net of interest expense	$	8,549		$	8,944		(4	)%	$	17,211		$	17,788		(3	)%
Total operating expenses	$	4,618		$	5,120		(10	)%	$	9,170		$	9,991		(8	)%
Net credit losses	$	1,579		$	1,738		(9	)%	$	3,130		$	3,470		(10	)%
Credit reserve build (release)	(103		)	(302		)	66		(216		)	(515		)	58
Provision (release) for unfunded lending commitments	(1		)	(3		)	67		(2		)	(6		)	67
Provision for benefits and claims	21			26			(19	)	49			67			(27	)
Provisions for credit losses and for benefits and claims	$	1,496		$	1,459		3	%	$	2,961		$	3,016		(2	)%
Income from continuing operations before taxes	$	2,435		$	2,365		3	%	$	5,080		$	4,781		6	%
Income taxes	805			802			—		1,725			1,544			12
Income from continuing operations	$	1,630		$	1,563		4	%	$	3,355		$	3,237		4	%
Noncontrolling interests	5			6			(17	)	—			13			(100	)
Net income	$	1,625		$	1,557		4	%	$	3,355		$	3,224		4	%
Balance Sheet data (in billions of dollars)
Average assets	$	394		$	409		(4	)%	$	394		$	408		(3	)%
Return on average assets	1.65		%	1.53		%			1.72		%	1.60		%
Efficiency ratio	54		%	57		%			53		%	56		%
Total EOP assets	$	395		$	414		(5	)
Average deposits	302			308			(2	)	$	302		$	305		(1	)
Net credit losses as a percentage of average loans	2.24		%	2.39		%			2.23		%	2.42		%
Revenue by business
Retail banking	$	3,776		$	3,845		(2	)%	$	7,550		$	7,634		(1	)%
Cards (1)	4,773			5,099			(6	)	9,661			10,154			(5	)
Total	$	8,549		$	8,944		(4	)%	$	17,211		$	17,788		(3	)%
Income from continuing operations by business
Retail banking	$	555		$	357		55	%	$	1,129		$	783		44	%
Cards (1)	1,075			1,206			(11	)	2,226			2,454			(9	)
Total	$	1,630		$	1,563		4	%	$	3,355		$	3,237		4	%

(Table continues on next page.)

13

Foreign currency (FX) translation impact
Total revenue-as reported	$	8,549	$	8,944		(4	)%	$	17,211	$	17,788		(3	)%
Impact of FX translation (2)	—		(485		)			—		(857		)
Total revenues-ex-FX	$	8,549	$	8,459		1	%	$	17,211	$	16,931		2	%
Total operating expenses-as reported	$	4,618	$	5,120		(10	)%	$	9,170	$	9,991		(8	)%
Impact of FX translation (2)	—		(296		)			—		(509		)
Total operating expenses-ex-FX	$	4,618	$	4,824		(4	)%	$	9,170	$	9,482		(3	)%
Total provisions for LLR & PBC-as reported	$	1,496	$	1,459		3	%	$	2,961	$	3,016		(2	)%
Impact of FX translation (2)	—		(124		)			—		(210		)
Total provisions for LLR & PBC-ex-FX	$	1,496	$	1,335		12	%	$	2,961	$	2,806		6	%
Net income-as reported	$	1,625	$	1,557		4	%	$	3,355	$	3,224		4	%
Impact of FX translation (2)	—		(36		)			—		(65		)
Net income-ex-FX	$	1,625	$	1,521		7	%	$	3,355	$	3,159		6	%

(1) Includes both Citi-branded cards and Citi retail services.

(2) Reflects the impact of foreign exchange (FX) translation into U.S. dollars at the second quarter of 2015 average exchange rates for all periods presented.

NM Not meaningful

14

NORTH AMERICA GCB

North America GCB provides traditional banking and Citi-branded cards and Citi retail services to retail customers and small to mid-size businesses in the U.S. North America GCB’s 779 retail bank branches as of June 30, 2015 were largely concentrated in the greater metropolitan areas of New York, Chicago, Miami, Washington, D.C., Boston, Los Angeles and San Francisco.

At June 30, 2015, North America GCB had approximately 11.2 million retail banking customer accounts, $48.8 billion of retail banking loans and $173.5 billion of deposits. In addition, North America GCB had approximately 111.3 million Citi-branded and Citi retail services credit card accounts, with $107.7 billion in outstanding card loan balances.

	Second Quarter						% Change		Six Months						% Change
In millions of dollars, except as otherwise noted	2015			2014					2015			2014
Net interest revenue	$	4,280		$	4,211		2	%	$	8,585		$	8,398		2	%
Non-interest revenue	543			576			(6	)	1,232			1,179			4
Total revenues, net of interest expense	$	4,823		$	4,787		1	%	$	9,817		$	9,577		3	%
Total operating expenses	$	2,267		$	2,349		(3	)%	$	4,559		$	4,788		(5	)%
Net credit losses	$	1,000		$	1,072		(7	)%	$	1,961		$	2,174		(10	)%
Credit reserve build (release)	(109		)	(397		)	73		(209		)	(668		)	69
Provisions for benefits and claims	9			11			(18	)	19			18			6
Provision for unfunded lending commitments	—			1			(100	)	1			3			(67	)
Provisions for credit losses and for benefits and claims	$	900		$	687		31	%	$	1,772		$	1,527		16	%
Income from continuing operations before taxes	$	1,656		$	1,751		(5	)%	$	3,486		$	3,262		7	%
Income taxes	589			677			(13	)	1,279			1,170			9
Income from continuing operations	$	1,067		$	1,074		(1	)%	$	2,207		$	2,092		5	%
Noncontrolling interests	(1		)	(1		)	—		(1		)	(1		)	—
Net income	$	1,068		$	1,075		(1	)%	$	2,208		$	2,093		5	%
Balance Sheet data (in billions of dollars)
Average assets	$	206		$	209		(1	)%	$	207		$	210		(1	)%
Return on average assets	2.08		%	2.06		%			2.15		%	2.01		%
Efficiency ratio	47		%	49		%			46		%	50		%
Average deposits	$	170.9		$	171.0		—		$	171.3		$	170.9		—
Net credit losses as a percentage of average loans	2.59		%	2.78		%			2.55		%	2.82		%
Revenue by business
Retail banking	$	1,307		$	1,177		11	%	$	2,655		$	2,321		14	%
Citi-branded cards	1,933			2,029			(5	)	3,942			4,050			(3	)
Citi retail services	1,583			1,581			—		3,220			3,206			—
Total	$	4,823		$	4,787		1	%	$	9,817		$	9,577		3	%
Income from continuing operations by business
Retail banking	$	189		$	90		NM		$	386		$	108		NM
Citi-branded cards	499			555			(10	)	1,038			1,119			(7	)
Citi retail services	379			429			(12	)	783			865			(9	)
Total	$	1,067		$	1,074		(1	)%	$	2,207		$	2,092		5	%

NM Not meaningful

15

2Q15 vs. 2Q14

Net income decreased 1% due to a lower net loan loss reserve release, partially offset by higher revenues, lower expenses and lower net credit losses.

Revenues increased 1%, primarily reflecting higher revenues in retail banking, largely offset by lower revenues in Citi-branded cards. Net interest revenue increased 2%, primarily due to continued volume growth in retail banking and improved deposit spreads, which more than offset continued lower average loans in Citi-branded cards. Non-interest revenue decreased 6%, largely driven by higher customer rewards costs in Citi-branded cards, partially offset by higher mortgage origination revenues due to higher U.S. mortgage refinancing activity. The decrease in non-interest revenues was also due to a continued decline in Citi retail services non-interest revenues, primarily reflecting higher contractual partner payments.

Retail banking revenues increased 11% due to 7% growth in average loans, 7% growth in checking deposits, improved deposit spreads and the higher mortgage origination revenues. This growth occurred despite the fact that, consistent with GCB’s strategy, since the second quarter of 2014, North America GCB closed or sold 133 branches (a 15% decline from the prior-year period). Increasing interest rates could negatively impact mortgage revenues going forward.

Cards revenues declined 3% due to a 3% decrease in average loans, partially offset by a 3% increase in purchase sales. In Citi-branded cards, revenues decreased 5% as the continued impact of lower average loans (down 5%) and the higher customer rewards costs were partially offset by a 5% increase in purchase sales and an improvement in spreads. The decline in average loans was driven primarily by the continued reduction in promotional balances and, to a lesser extent, increased customer payment rates.

Citi retail services revenues were unchanged, as the impact of higher spreads was offset by the continued impact of lower fuel prices on purchase sales and the higher contractual partner payments. Purchase sales in Citi retail services decreased 1% from the prior-year period, largely due to the impact of lower fuel prices.

Expenses decreased 3% as ongoing cost reduction initiatives, including as a result of North America GCB’s branch rationalization strategy, were partially offset by increased investment spending. North America GCB expects increased investment spending to continue during the remainder of 2015, primarily in U.S. branded cards.

Provisions increased 31% due to lower net loan loss reserve releases (73%), partially offset by lower net credit losses (7%). Net credit losses declined in Citi-branded cards (down 12% to $503 million) and in Citi retail services (down 2% to $457 million). The lower net loan loss reserve release reflected continued stabilization in the cards portfolios.

2015 YTD vs. 2014 YTD

Year-to-date, North America GCB has experienced similar trends to those described above. Net income increased 5% due to higher revenues, lower expenses and lower net credit losses, partially offset by a lower net loan loss reserve release.

Revenues increased 3%, primarily reflecting higher revenues in retail banking, partially offset by lower revenues in Citi-branded cards. Retail banking revenues increased 14% due to 7% growth in average loans, a gain on sale of approximately $110 million related to the sale of branches in Texas compared to a gain of approximately $70 million related to a sale-leaseback transaction in the prior-year period, the higher mortgage origination revenues and improved deposit spreads. Cards revenues decreased 1%, as Citi-branded cards, revenues decreased 3% and Citi retail services revenues were unchanged, driven by the same factors described above.

Expenses decreased 5%, driven by the same factors described above.

Provisions increased 16% due to the lower net loan loss reserve releases (69%), partially offset by lower net credit losses (10%) driven by cards.

16

LATIN AMERICA GCB

Latin America GCB provides traditional banking and Citi-branded card services to retail customers and small to mid-size businesses, with the largest presence in Mexico and Brazil. Latin America GCB includes branch networks throughout Latin America as well as Banco Nacional de Mexico, or Banamex, Mexico’s second-largest bank, with 1,497 branches as of June 30, 2015.

At June 30, 2015, Latin America GCB had 1,699 retail branches, with approximately 30.7 million retail banking customer accounts, $25.7 billion in retail banking loans and $42.1 billion in deposits. In addition, the business had approximately 8.0 million Citi-branded card accounts with $8.3 billion in outstanding loan balances.

	Second Quarter						% Change		Six Months						% Change
In millions of dollars, except as otherwise noted	2015			2014					2015			2014
Net interest revenue	$	1,241		$	1,432		(13	)%	$	2,483		$	2,796		(11	)%
Non-interest revenue	607			704			(14	)	1,200			1,423			(16	)
Total revenues, net of interest expense	$	1,848		$	2,136		(13	)%	$	3,683		$	4,219		(13	)%
Total operating expenses	$	1,162		$	1,254		(7	)%	$	2,242		$	2,457		(9	)%
Net credit losses	$	392		$	454		(14	)%	$	809		$	890		(9	)%
Credit reserve build (release)	7			109			(94	)	29			160			(82	)
Provision (release) for unfunded lending commitments	3			1			NM		—			—			(100	)
Provision for benefits and claims	12			15			(20	)	30			49			(39	)
Provisions for credit losses and for benefits and claims (LLR & PBC)	$	414		$	579		(28	)%	$	868		$	1,099		(21	)%
Income from continuing operations before taxes	$	272		$	303		(10	)%	$	573		$	663		(14	)%
Income taxes	47			28			68		104			97			7
Income from continuing operations	$	225		$	275		(18	)%	$	469		$	566		(17	)%
Noncontrolling interests	2			2			—		2			4			(50	)
Net income	$	223		$	273		(18	)%	$	467		$	562		(17	)%
Balance Sheet data(in billions of dollars)
Average assets	$	66		$	77		(14	)%	$	67		$	77		(13	)%
Return on average assets	1.36		%	1.42		%			1.41		%	1.49		%
Efficiency ratio	63		%	59		%			61		%	58		%
Average deposits	$	41.7		$	45.2		(8	)	$	42.0		$	44.5		(6	)
Net credit losses as a percentage of average loans	4.60		%	4.63		%			4.74		%	4.71		%
Revenue by business
Retail banking	$	1,269		$	1,431		(11	)%	$	2,520		$	2,851		(12	)%
Citi-branded cards	579			705			(18	)	1,163			1,368			(15	)
Total	$	1,848		$	2,136		(13	)%	$	3,683		$	4,219		(13	)%
Income from continuing operations by business
Retail banking	$	143		$	206		(31	)%	$	297		$	410		(28	)%
Citi-branded cards	82			69			19		172			156			10
Total	$	225		$	275		(18	)%	$	469		$	566		(17	)%
Foreign currency (FX) translation impact
Total revenues-as reported	$	1,848		$	2,136		(13	)%	$	3,683		$	4,219		(13	)%
Impact of FX translation (1)	—			(341		)			—			(596		)
Total revenues-ex-FX	$	1,848		$	1,795		3	%	$	3,683		$	3,623		2	%
Total operating expenses-as reported	$	1,162		$	1,254		(7	)%	$	2,242		$	2,457		(9	)%
Impact of FX translation (1)	—			(180		)			—			(312		)
Total operating expenses-ex-FX	$	1,162		$	1,074		8	%	$	2,242		$	2,145		5	%
Provisions for LLR & PBC-as reported	$	414		$	579		(28	)%	$	868		$	1,099		(21	)%
Impact of FX translation (1)	—			(100		)			—			(169		)
Provisions for LLR & PBC-ex-FX	$	414		$	479		(14	)%	$	868		$	930		(7	)%
Net income-as reported	$	223		$	273		(18	)%	$	467		$	562		(17	)%
Impact of FX translation (1)	—			(38		)			—			(62		)
Net income-ex-FX	$	223		$	235		(5	)%	$	467		$	500		(7	)%

(1) Reflects the impact of foreign exchange (FX) translation into U.S. dollars at the second quarter of 2015 average exchange rates for all periods presented.

NM Not Meaningful

17

The discussion of the results of operations for Latin America GCB below excludes the impact of FX translation for all periods presented. Presentations of the results of operations, excluding the impact of FX translation, are non-GAAP financial measures. For a reconciliation of certain of these metrics to the reported results, see the table above.

2Q15 vs. 2Q14

Net income decreased 5%, primarily due to higher expenses, partially offset by higher revenues and lower credit costs.

Revenues increased 3%, primarily due to modest volume growth in Mexico (2% increase in average loans and 5% increase in average deposits), partially offset by the impact of the sale of the Honduras consumer business in the prior-year period. Net interest revenue increased 4% due to loan and deposit growth and stable spreads in Mexico, partially offset by ongoing spread compression in other Latin America markets and the impact of the sale of the Honduras consumer business in the prior-year period. Non-interest revenue increased 1%, primarily driven by investment sales in Mexico, partially offset by the impact of the sale of the Honduras consumer business in the prior-year period.

Retail banking revenues increased 5%, primarily due to the volume growth in Mexico, as increases in average loans, and average deposits were partially offset by the impact of the sale of the Honduras consumer business in the prior-year period. Cards revenues decreased 1%, primarily due to lower growth in Mexico due to declines in average loans resulting from the previously disclosed fiscal reforms, which is expected to continue in the near term.

Slow economic growth in the region, including continued weaker economic growth in Mexico, could continue to negatively impact revenue growth in Latin America GCB during the remainder of 2015.

Expenses increased 8%, primarily due to higher legal and related expenses, mandatory salary increases in certain countries, increased regulatory and compliance spending and technology infrastructure upgrades, partially offset by efficiency savings.

Provisions decreased 14%, primarily due to a lower net loan loss reserve build, partially offset by higher net credit losses. Net credit losses increased 4%, primarily driven by portfolio growth. The net loan loss reserve build declined 92% due to a lower build related to Mexico cards.

Argentina/Venezuela

For additional information on Citi’s exposures and risks in Argentina and Venezuela, see “Risk Factors” in Citi’s 2014 Annual Report on Form 10-K and “Managing Global Risk-Country and Cross-Border Risk” below.

2015 YTD vs. 2014 YTD

Year-to-date, Latin America GCB has experienced similar trends to those described above. Net income decreased 7%, primarily due to higher expenses, partially offset by higher revenues and lower credit costs.

Revenues increased 2%, primarily due to higher volume growth in Mexico (1% increase in average loans and 7% increase in average deposits), partially offset by the impact of business divestitures in the prior-year period, including the sale of the Honduras consumer business in the second quarter of 2014 and the partial sale of Citi’s indirect investment in Banco de Chile in the first quarter of 2014. Net interest revenue increased 4% due to loan and deposit growth and stable spreads in Mexico, partially offset by ongoing spread compression in other Latin America markets and the impact of the business divestitures in the prior-year period. Non-interest revenue decreased 3%, primarily due to the impact of the business divestitures in the prior-year period. Retail banking revenues increased 2%, driven by the same factors described above as well as the partial sale of Citi’s indirect investment in Banco de Chile in the prior-year period. Cards revenues were unchanged, as modest growth in Mexico was largely offset by declines in other Latin America markets.

Expenses increased 5%, driven by the factors described above.

Provisions decreased 7%, primarily due to a lower net loan loss reserve build, partially offset by higher net credit losses. Net credit losses increased 7%, primarily driven by portfolio growth and continued seasoning in the Mexico cards portfolio. The net loan loss reserve build declined 79% due to a lower build related to Mexico cards, partially offset by a build in Brazil commercial banking.

18

ASIA GCB

Asia GCB provides traditional banking and Citi-branded card services to retail customers and small to mid-size businesses, with the largest Citi presence in Korea, Singapore, Hong Kong, Australia, Taiwan, India, Thailand, Indonesia, Malaysia and the Philippines as of June 30, 2015. In addition, for reporting purposes, Asia GCB includes the results of operations of EMEA GCB, which provides traditional banking and Citi-branded card services to retail customers and small to mid-size businesses, primarily in Poland, Russia and the United Arab Emirates.

At June 30, 2015, on a combined basis, the businesses had 537 retail branches, approximately 17.5 million retail banking customer accounts, $75.3 billion in retail banking loans and $89.6 billion in deposits. In addition, the businesses had approximately 17.3 million Citi-branded card accounts with $18.1 billion in outstanding loan balances.

	Second Quarter						% Change		Six Months						% Change
In millions of dollars, except as otherwise noted (1)	2015			2014					2015			2014
Net interest revenue	$	1,171		$	1,290		(9	)%	$	2,325		$	2,540		(8	)%
Non-interest revenue	707			731			(3	)	1,386			1,452			(5	)
Total revenues, net of interest expense	$	1,878		$	2,021		(7	)%	$	3,711		$	3,992		(7	)%
Total operating expenses	$	1,189		$	1,517		(22	)%	$	2,369		$	2,746		(14	)%
Net credit losses	$	187		$	212		(12	)%	$	360		$	406		(11	)%
Credit reserve build (release)	(1		)	(14		)	93		(36		)	(7		)	NM
Provision for unfunded lending commitments	(4		)	(5		)	20		(3		)	(9		)	67
Provisions for credit losses	$	182		$	193		(6	)%	$	321		$	390		(18	)%
Income from continuing operations before taxes	$	507		$	311		63	%	$	1,021		$	856		19	%
Income taxes	169			97			74		342			277			23
Income from continuing operations	$	338		$	214		58	%	$	679		$	579		17	%
Noncontrolling interests	4			5			(20	)	(1		)	10			NM
Net income	$	334		$	209		60	%	$	680		$	569		20	%
Balance Sheet data (in billions of dollars)
Average assets	$	122		$	123		(1	)%	$	120		$	122		(2	)%
Return on average assets	1.10		%	0.68		%			1.14		%	0.94		%
Efficiency ratio	63		%	75		%			64		%	69		%
Average deposits	$	89.5		$	91.3		(2	)	$	89.0		$	89.9		(1	)
Net credit losses as a percentage of average loans	0.80		%	0.87		%			0.78		%	0.85		%
Revenue by business
Retail banking	$	1,200		$	1,237		(3	)%	$	2,375		$	2,462		(4	)%
Citi-branded cards	678			784			(14	)	1,336			1,530			(13	)
Total	$	1,878		$	2,021		(7	)%	$	3,711		$	3,992		(7	)%
Income from continuing operations by business
Retail banking	$	223		$	61		NM		$	446		$	265		68	%
Citi-branded cards	115			153			(25	)	233			314			(26	)
Total	$	338		$	214		58	%	$	679		$	579		17	%

19

Foreign currency (FX) translation impact
Total revenues-as reported	$	1,878	$	2,021		(7	)%	$	3,711	$	3,992		(7	)%
Impact of FX translation (2)	—		(144		)			—		(261		)
Total revenues-ex-FX	$	1,878	$	1,877		—	%	$	3,711	$	3,731		(1	)%
Total operating expenses-as reported	$	1,189	$	1,517		(22	)%	$	2,369	$	2,746		(14	)%
Impact of FX translation (2)	—		(116		)			—		(197		)
Total operating expenses-ex-FX	$	1,189	$	1,401		(15	)%	$	2,369	$	2,549		(7	)%
Provisions for loan losses-as reported	$	182	$	193		(6	)%	$	321	$	390		(18	)%
Impact of FX translation (2)	—		(24		)			—		(41		)
Provisions for loan losses-ex-FX	$	182	$	169		8	%	$	321	$	349		(8	)%
Net income-as reported	$	334	$	209		60	%	$	680	$	569		20	%
Impact of FX translation (2)	—		2					—		(3		)
Net income-ex-FX	$	334	$	211		58	%	$	680	$	566		20	%

(1) For reporting purposes, Asia GCB includes the results of operations of EMEA GCB for all periods presented.

(2) Reflects the impact of foreign exchange (FX) translation into U.S. dollars at the second quarter of 2015 average exchange rates for all periods presented.

NM Not meaningful

The discussion of the results of operations for Asia GCB below excludes the impact of FX translation for all periods presented. Presentations of the results of operations, excluding the impact of FX translation, are non-GAAP financial measures. For a reconciliation of certain of these metrics to the reported results, see the table above.

2Q15 vs. 2Q14

Net income increased 58%, primarily due to lower expenses, partially offset by higher credit costs.

Revenues were unchanged. Non-interest revenue increased 2%, primarily driven by higher fee revenues. Net interest revenue declined 1%, driven by the ongoing impact of regulatory changes and continued spread compression.

Retail banking revenues increased 3%, primarily due to higher insurance fee revenues and volumes, as investment sales increased 41% reflecting market trends, average retail deposits increased 5% and average retail loans increased 2%, partially offset by continued spread compression and regulatory changes.

Cards revenues decreased 5% driven by the ongoing impact of spread compression, continued higher payment rates and the impact of regulatory changes, particularly in Singapore, Taiwan, Australia and Poland, partially offset by volume growth (4% increase in average loans and a 5% increase in purchase sales). While Citi could continue to experience a negative impact on Asia cards revenues from spread compression and regulatory changes in several markets, it continues to believe these impacts could abate somewhat in the second half of 2015.

Expenses decreased 15%, largely due to the absence of approximately $270 million of repositioning charges in Korea in the prior year period and efficiency savings, partially offset by higher investment spending, regulatory and compliance costs and volume-related growth.

Provisions increased 8%, primarily due to a lower net loan loss reserve release, partially offset by lower net credit losses.

Russia

For additional information on Citi’s exposures and risks in Russia, see “EMEA GCB” and “Risk Factors” in Citi’s 2014 Annual Report on Form 10-K and “Managing Global Risk-Country and Cross-Border Risk” below.

2015 YTD vs. 2014 YTD

Year-to-date, Asia GCB has experienced similar trends to those described above. Net income increased 20%, primarily due to lower expenses and lower credit costs, partially offset by lower revenues.

Revenues decreased 1%. Non-interest revenue increased 1%, primarily driven by higher fee revenues. Net interest revenue declined 1%, driven by the ongoing impact of regulatory changes and continued spread compression. Retail banking revenues increased 2%, driven by the same factors described above. Cards revenues decreased 5%, driven by the same factors described above.

Expenses decreased 7%, driven by the same factors described above.

Provisions decreased 8%, primarily due to a higher net loan loss reserve release and lower net credit losses.

20

INSTITUTIONAL CLIENTS GROUP

Institutional Clients Group (ICG) provides corporate, institutional, public sector and high-net-worth clients around the world with a full range of wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate lending, investment banking and advisory services, private banking, cash management, trade finance and securities services. ICG transacts with clients in both cash instruments and derivatives, including fixed income, foreign currency, equity and commodity products.

ICG revenue is generated primarily from fees and spreads associated with these activities. ICG earns fee income for assisting clients in clearing transactions, providing brokerage and investment banking services and other such activities. Revenue generated from these activities is recorded in Commissions and fees and Investment banking. In addition, as a market maker, ICG facilitates transactions, including holding product inventory to meet client demand, and earns the differential between the price at which it buys and sells the products. These price differentials and the unrealized gains and losses on the inventory are recorded in Principal transactions. Interest income earned on inventory and loans held less interest paid to customers on deposits is recorded as Net interest revenue. Revenue is also generated from transaction processing and assets under custody and administration.

ICG’s international presence is supported by trading floors in approximately 80 countries and a proprietary network in over 95 countries and jurisdictions. At June 30, 2015, ICG had approximately $1.3 trillion of assets and $588 billion of deposits, while two of its businesses, securities services and issuer services, managed approximately $15.5 trillion of assets under custody compared to $15.4 trillion at the end of the prior-year period.

	Second Quarter						% Change		Six Months						% Change
In millions of dollars, except as otherwise noted	2015			2014					2015			2014
Commissions and fees	$	986		$	992		(1	)%	$	1,981		$	2,006		(1	)%
Administration and other fiduciary fees	658			651			1	%	1,266			1,275			(1	)
Investment banking	1,120			1,257			(11	)%	2,254			2,214			2
Principal transactions	1,797			1,577			14	%	3,995			4,180			(4	)
Other	166			104			60	%	415			243			71
Total non-interest revenue	$	4,727		$	4,581		3	%	$	9,911		$	9,918		—	%
Net interest revenue (including dividends)	4,151			3,821			9	%	7,995			7,638			5
Total revenues, net of interest expense	$	8,878		$	8,402		6	%	$	17,906		$	17,556		2	%
Total operating expenses	$	4,821		$	4,743		2	%	$	9,453		$	9,601		(2	)%
Net credit losses	$	83		$	9		NM		$	81		$	143		(43	)%
Credit reserve release	(132		)	(96		)	(38	)%	(25		)	(183		)	86
Provision (release) for unfunded lending commitments	(46		)	(25		)	(84	)%	(77		)	(45		)	(71	)
Provisions for credit losses	$	(95	)	$	(112	)	15	%	$	(21	)	$	(85	)	75	%
Income from continuing operations before taxes	$	4,152		$	3,771		10	%	$	8,474		$	8,040		5	%
Income taxes	1,317			1,205			9	%	2,675			2,526			6
Income from continuing operations	$	2,835		$	2,566		10	%	$	5,799		$	5,514		5	%
Noncontrolling interests	15			19			(21	)%	51			45			13
Net income	$	2,820		$	2,547		11	%	$	5,748		$	5,469		5	%
Average assets (in billions of dollars)	$	1,279		$	1,290		(1	)%	$	1,277		$	1,286		(1	)%
Return on average assets	0.88		%	0.79		%			0.91		%	0.86		%
Efficiency ratio	54		%	56		%			53		%	55		%
CVA/DVA after-tax	$	190		$	(20	)	NM		$	146		$	(24	)	NM
Net income ex-CVA/DVA	$	2,630		$	2,567		2	%	$	5,602		$	5,493		2	%
Revenues by region
North America	$	3,285		$	3,154		4	%	$	6,588		$	6,715		(2	)%
EMEA	2,543			2,430			5	%	5,306			5,201			2
Latin America	1,111			1,149			(3	)%	2,176			2,250			(3	)
Asia	1,939			1,669			16	%	3,836			3,390			13
Total	$	8,878		$	8,402		6	%	$	17,906		$	17,556		2	%

21

Income from continuing operations by region
North America	$	978	$	1,096	(11	)%	$	1,993	$	2,401	(17	)%
EMEA	684		570		20	%	1,541		1,362		13
Latin America	470		427		10	%	883		767		15
Asia	703		473		49	%	1,382		984		40
Total	$	2,835	$	2,566	10	%	$	5,799	$	5,514	5	%
Average loans by region (in billions of dollars)
North America	$	122	$	109	12	%	$	119	$	108	10	%
EMEA	60		59		2	%	59		58		2
Latin America	39		41		(5	)%	39		41		(5	)
Asia	63		70		(10	)%	63		69		(9	)
Total	$	284	$	279	2	%	$	280	$	276	1	%
EOP deposits by business (in billions of dollars)
Treasury and trade solutions	$	398	$	384	4	%
All other ICG businesses	190		188		1	%
Total	$	588	$	572	3	%

ICG Revenue Details—Excluding CVA/DVA and Gain/(Loss) on Loan Hedges

	Second Quarter						% Change		Six Months						% Change
In millions of dollars	2015			2014					2015			2014
Investment bankingrevenue details
Advisory	$	258		$	193		34	%	$	556		$	368		51	%
Equity underwriting	296			397			(25	)	527			696			(24	)
Debt underwriting	729			749			(3	)	1,398			1,328			5
Total investment banking	$	1,283		$	1,339		(4	)%	$	2,481		$	2,392		4	%
Treasury and trade solutions	1,955			1,980			(1	)	3,844			3,901			(1	)
Corporate lending - excluding gain/(loss) on loan hedges	445			456			(2	)	890			872			2
Private bank	746			658			13		1,454			1,328			9
Total banking revenues (ex-CVA/DVA and gain/(loss) on loan hedges)	$	4,429		$	4,433		—	%	$	8,669		$	8,493		2	%
Corporate lending - gain/(loss) on loan hedges (1)	$	(66	)	$	(44	)	(50	)%	$	(14	)	$	(61	)	77	%
Total banking revenues (ex-CVA/DVA and including gain/(loss) on loan hedges)	$	4,363		$	4,389		(1	)%	$	8,655		$	8,432		3	%
Fixed income markets	$	3,062		$	3,080		(1	)%	$	6,545		$	7,009		(7	)%
Equity markets	653			659			(1	)	1,526			1,541			(1	)
Securities services	557			521			7		1,100			1,006			9
Other	(60		)	(215		)	72		(154		)	(393		)	61
Total Markets and securities services (ex-CVA/DVA)	$	4,212		$	4,045		4	%	$	9,017		$	9,163		(2	)%
Total ICG (ex-CVA/DVA)	$	8,575		$	8,434		2	%	$	17,672		$	17,595		—	%
CVA/DVA (excluded as applicable in lines above) (2)	303			(32		)	NM		234			(39		)	NM
Fixed income markets	283			(36		)	NM		207			(62		)	NM
Equity markets	21			4			NM		24			20			20
Private bank	(1		)	—			—		3			3			—
Total revenues, net of interest expense	$	8,878		$	8,402		6	%	$	17,906		$	17,556		2	%

(1) Hedges on accrual loans reflect the mark-to-market on credit derivatives used to economically hedge the corporate loan accrual portfolio. The fixed premium costs of these hedges are netted against the corporate lending revenues to reflect the cost of credit protection.

(2) Funding valuation adjustments (FVA) is included within CVA for presentation purposes. For additional information, see Note 22 to the Consolidated Financial Statements.

NM Not meaningful

22

The discussion of the results of operations for ICG below excludes the impact of CVA/DVA for all periods presented. Presentations of the results of operations, excluding the impact of CVA/DVA and the impact of gains/(losses) on hedges on accrual loans, are non-GAAP financial measures. For a reconciliation of these metrics to the reported results, see the table above.

2Q15 vs. 2Q14

Net income increased 2%, primarily driven by higher revenues, partially offset by higher expenses and an increase in the cost of credit.

• Revenues increased 2%, reflecting higher revenues in Markets and securities services (increase of 4%) as Banking revenues were largely unchanged (excluding the gains/(losses) on hedges on accrual loans).

Within Banking:

• Investment banking revenues decreased 4% reflecting lower underwriting activity as compared to very strong performance in the prior-year period, consistent with overall market trends. Advisory revenues increased 34%, reflecting increased wallet share and strength in the overall M&A market.Equity underwriting revenues decreased 25% due to the particularly strong market performance in the prior-year period and a decline in wallet share resulting from continued share fragmentation. Debt underwriting revenues decreased 3%, as a decline in overall wallet share and lower market activity in EMEA was partially offset by increased revenues in North America.

• Treasury and trade solutions revenues decreased 1%. Excluding the impact of FX translation, revenues increased 5%, as continued growth in deposit balances and improved spreads, particularly in North America, were partially offset by lower activity and the continued impact of spread compression in trade, particularly in Asia. End-of-period deposit balances increased 4%. Excluding the impact of FX translation, end-of-period deposits increased 9%, particularly in North America. Average trade loans decreased 12%. Excluding the impact of FX translation, average trade loans decreased 9%, as the spread compression in trade, particularly in Asia, led to a reduction of on-balance sheet loans while Citi continued to support new originations for its clients.

• Corporate lending revenues decreased 8%. Excluding the impact of gains/(losses) on hedges on accrual loans, revenues decreased 2% versus the prior-year period. Excluding the impact of FX translation, corporate lending revenues increased 4%, as continued growth in average loan balances and lower hedge premium costs were partially offset by lower spreads.

• Private bank revenues increased 13%, primarily due to growth in client business volumes in both banking and lending, particularly in North America, as well as increased capital markets activity and higher managed investments revenues, partially offset by continued spread compression in lending.

Within Markets and securities services:

• Fixed income markets revenues decreased 1%, driven by a decrease in spread products revenues, partially offset by continued growth in rates and currencies revenues. Spread products revenues declined due to lower activity levels, particularly in credit products in North America and as a result of overall weakness in EMEA. Each of distressed credit, structured credit and municipals products experienced lower activity levels in a challenging credit environment due to lower risk appetite across the credit markets. Rates and currencies revenues increased, particularly in G10 rates in North America, due to increased client flows and improved trading performance due to higher market volatility, combined with strong performance in local markets in Asia, partially offset by a slight decline in G10 foreign exchange and weakness in EMEA.

• Equity markets revenues decreased 1%, primarily reflecting a charge of $175 million for valuation adjustments related to certain financing transactions. Currently, Citi has remaining exposure with respect to these transactions of less than $100 million. Excluding the adjustments, revenues would have increased by 26%, primarily reflecting growth in derivatives, improved trading performance in EMEA and strong client momentum in Asia.

• Securities services revenues increased 7%, particularly in Asia and EMEA, reflecting increased client activity and higher client balances, which drove growth in net interest revenue and custody and clearing fees, partially offset by the impact of FX translation.

Expenses increased 2%, primarily due to higher regulatory and compliance costs and volume-related costs and investments, partially offset by ongoing efficiency savings and the impact of FX translation.

Provisions increased 15% to a negative $95 million primarily reflecting higher net credit losses, partially offset by a higher net loan loss reserve release. Net credit losses increased $74 million. The increase related to a limited number of corporate loans, with the vast majority of these net credit losses offset by the release of related, previously-established loan loss reserves. The higher net loan loss reserve release was driven by this release of previously-established loan loss reserves as well as improvement in the overall corporate portfolio, partially offset by an approximately $43 million loan loss reserve build for certain energy and energy-related exposures (for additional information, see “Managing Global Risk-Corporate Credit Risk Details” below).

23

Russia/Greece

For additional information on Citi’s exposures and risks in Russia, see “Institutional Clients Group-Russia” and “Risk Factors” in Citi’s 2014 Annual Report on Form 10-K and “Managing Global Risk-Country and Cross-Border Risk” below. For additional information on Citi’s exposures and risks in Greece, see “Risk Factors” in Citi’s 2014 Annual Report on Form 10-K and “Managing Global Risk-Country and Cross-Border Risk” below.

2015 YTD vs. 2014 YTD

Net income increased 5%, primarily driven by lower expenses, partially offset by an increase in the cost of credit.

• Revenues were unchanged, reflecting lower revenues in Markets and securities services (decrease of 2%), offset by higher revenues in Banking (increase of 3%, 2% excluding the gains/(losses) on hedges on accrual loans).

Within Banking:

• Investment banking revenues increased 4%, reflecting strength in North America and improved overall wallet share, despite a decline in the overall market environment due to lower underwriting activity. Advisory revenues increased 51%, reflecting increased wallet share and strength in the overall M&A market.Equity underwriting revenues decreased 24% due in part to a decline in wallet share resulting from continued share fragmentation. Debt underwriting revenues increased 5%, as strength in investment grade debt more than offset declines in the loan underwriting market.

• Treasury and trade solutions revenues decreased 1%. Excluding the impact of FX translation, revenues increased 4%, as continued growth in deposit balances and improved spreads were partially offset by lower activity and the continued impact of spread compression in trade. End-of-period deposit balances increased 4%. Excluding the impact of FX translation, end-of-period deposits increased 9%, as discussed above. Average trade loans decreased 14%. Excluding the impact of FX translation, average trade loans decreased 9%, as discussed above.

• Corporate lending revenues increased 8%. Excluding the impact of gains/(losses) on hedges on accrual loans, revenues increased 2%, as continued growth in average loan balances, lower hedge premium costs and an improvement in mark-to-market adjustments were partially offset by the impact of FX translation and lower spreads.

• Private bank revenues increased 9%, primarily due to continued growth in client business volumes in both banking and lending, as well as higher capital markets activity, partially offset by continued spread compression in lending and weakness in Latin America.

Within Markets and securities services:

• Fixed income markets revenues decreased 7%, driven by a decrease in spread products revenues, partially offset by growth in rates and currencies revenues. Spread products revenues declined, particularly credit markets in North America, due to lower activity in the period, as well as

strong performance in the prior-year period. Distressed credit, structured credit, securitized markets and municipals products all experienced lower activity levels due to lower risk appetite across the credit markets, partially offset by increased client activity in investment grade credit. Rates and currencies revenues increased, particularly in EMEA, due to increased client flows in G10 and local markets, driven in part by central bank actions and increased foreign exchange volatility, combined with strength in Asia due to improved performance, partially offset by the previously disclosed modest loss on the Swiss franc revaluation early in the first quarter of 2015.

• Equity markets revenues decreased 1%, primarily reflecting the charge for valuation adjustments referenced above. Excluding the adjustments, revenues would have increased by 10%, primarily due to growth in derivatives, particularly in Asia and EMEA, partially offset by North America.

• Securities services revenues increased 9%, reflecting increased client activity and higher client balances, which drove growth in net interest revenue and custody and clearing fees, partially offset by the impact of FX translation.

Expenses decreased 2%, primarily due to the impact of FX translation, lower legal and related expenses, lower repositioning charges and ongoing efficiency savings, partially offset by increased regulatory and compliance costs and higher volume-related costs.

Provisions increased 75% to a negative $21 million, primarily reflecting a lower net loan loss reserve release largely due to the impact of an approximately $140 million loan loss reserve build for certain energy and energy-related exposures, partially offset by lower net credit losses largely due to the absence of $165 million of credit costs related to the Pemex supplier program in the prior-year period (for additional information, see Citi’s Current Report on Form 8-K filed with the SEC on February 28, 2014).

24

CORPORATE/OTHER

Corporate/Other includes certain unallocated costs of global staff functions (including finance, risk, human resources, legal and compliance), other corporate expenses and unallocated global operations and technology expenses, Corporate Treasury and discontinued operations. At June 30, 2015, Corporate/Other had $52 billion of assets, or 3% of Citigroup’s total assets. For additional information, see “Balance Sheet Review” and “Managing Global Risk-Market Risk-Funding and Liquidity” below.

	Second Quarter						% Change		Six Months						% Change
In millions of dollars	2015			2014					2015			2014
Net interest revenue	$	(22	)	$	(45	)	51	%	$	(50	)	$	(80	)	38	%
Non-interest revenue	392			134			NM		632			392			61
Total revenues, net of interest expense	$	370		$	89		NM		$	582		$	312		87	%
Total operating expenses	$	385		$	636		(39	)%	$	928		$	1,038		(11	)%
Provisions for loan losses and for benefits and claims	—			—			—	%	—			—			—	%
Loss from continuing operations before taxes	$	(15	)	$	(547	)	97	%	$	(346	)	$	(726	)	52	%
Income taxes (benefits)	(245		)	(163		)	(50	)%	(557		)	46			NM
Income (loss) from continuing operations	$	230		$	(384	)	NM		$	211		$	(772	)	NM
Income (loss) from discontinued operations, net of taxes	6			(22		)	NM		1			15			(93	)%
Net income (loss) before attribution of noncontrolling interests	$	236		$	(406	)	NM		$	212		$	(757	)	NM
Noncontrolling interests	(2		)	25			NM		8			35			(77	)%
Net income (loss)	$	238		$	(431	)	NM		$	204		$	(792	)	NM

NM Not meaningful

2Q15 vs. 2Q14

Net income was $238 million, compared to a net loss of $431 million in the prior-year period, primarily due to higher revenue, lower expenses and the favorable tax impact reflecting the resolution of certain state and local audits (see “Income Taxes” below).

Revenues increased $281 million to $370 million, primarily due to gains on debt buybacks as well as real estate sales in the current quarter, partially offset by hedging activities.

Expenses decreased 39%, primarily due to lower legal and related expenses ($144 million compared to $296 million in the prior-year period) as well as the benefit of FX translation.

2015 YTD vs. 2014 YTD

Year-to-date, Corporate/Other has experienced similar trends to those described above. Net income was $204 million, compared to a net loss of $792 million, primarily due to higher revenues, the favorable tax impact resulting from the resolution of certain state and local audits referenced above and lower expenses.

Revenues increased 87%, primarily due to the gains on debt buybacks and real estate sales and higher revenues from sales of available-for-sale securities, partially offset by hedging activities.

Expenses decreased 11%, as the benefit of FX translation and lower repositioning charges were partially offset by higher legal and related expenses ($459 million compared to $383 million in the prior-year period).

25

CITI HOLDINGS

Citi Holdings contains businesses and portfolios of assets that Citigroup has determined are not central to its core Citicorp businesses.

As of June 30, 2015, Citi Holdings assets were approximately $116 billion, a decrease of 22% year-over-year and 5% from March 31, 2015. The decline in assets of $6 billion from March 31, 2015 primarily consisted of divestitures and run-off. During the second quarter of 2015, Citi completed the sales of its consumer businesses in Peru and Nicaragua. In addition, as previously announced, Citi currently has executed agreements to sell an additional $32 billion of assets, including the consumer businesses in Japan, Egypt, Costa Rica and Panama as well as OneMain Financial, subject to regulatory approvals and other closing conditions.

As of June 30, 2015, consumer assets in Citi Holdings were approximately $103 billion, or approximately 89% of Citi Holdings assets. Of the consumer assets, approximately $51 billion, or 50%, consisted of North America mortgages (residential first mortgages and home equity loans), including consumer mortgages originated by Citi’s legacy CitiFinancial North America business (approximately $9 billion, or 18%, of the $51 billion as of June 30, 2015). As of June 30, 2015, Citi Holdings represented approximately 6% of Citi’s GAAP assets and 13% of its risk-weighted assets under Basel III (based on the Advanced Approaches for determining risk-weighted assets).

	Second Quarter						% Change		Six Months						% Change
In millions of dollars, except as otherwise noted	2015			2014					2015			2014
Net interest revenue	$	1,001		$	1,237		(19	)%	$	2,056		$	2,413		(15	)%
Non-interest revenue	672			753			(11	)	1,451			1,562			(7	)
Total revenues, net of interest expense	$	1,673		$	1,990		(16	)%	$	3,507		$	3,975		(12	)%
Provisions for credit losses and for benefits and claims
Net credit losses	$	258		$	442		(42	)%	$	666		$	1,015		(34	)%
Credit reserve release	(170		)	(212		)	20		(366		)	(558		)	34
Provision for loan losses	$	88		$	230		(62	)%	$	300		$	457		(34	)%
Provision for benefits and claims	160			156			3		329			323			2
Release for unfunded lending commitments	(1		)	(3		)	67		(6		)	(7		)	14
Total provisions for credit losses and for benefits and claims	$	247		$	383		(36	)%	$	623		$	773		(19	)%
Total operating expenses	$	1,104		$	5,022		(78	)%	$	2,261		$	7,040		(68	)%
Income (loss) from continuing operations before taxes	$	322		$	(3,415	)	NM		$	623		$	(3,838	)	NM
Income taxes (benefits)	159			77			NM		313			(64		)	NM
Income (loss) from continuing operations	$	163		$	(3,492	)	NM		$	310		$	(3,774	)	NM
Noncontrolling interests	—			—			—	%	$	1		$	2		(50	)%
Net Income (loss)	$	163		$	(3,492	)	NM		$	309		$	(3,776	)	NM
Total revenues, net of interest expense (excluding CVA/DVA)
Total revenues-as reported	$	1,673		$	1,990		(16	)%	$	3,507		$	3,975		(12	)%
CVA/DVA(1)	9			(1		)	NM		5			13			(62	)%
Total revenues-excluding CVA/DVA	$	1,664		$	1,991		(16	)%	$	3,502		$	3,962		(12	)%
Balance sheet data (in billions of dollars)
Average assets	$	118		$	148		(20	)%	$	122		$	150		(19	)%
Return on average assets	0.55		%	(9.46		)%			0.51		%	(5.08		)%
Efficiency ratio	66		%	252		%			64		%	177		%
Total EOP assets	$	116		$	148		(22	)%
Total EOP loans	59			90			(34	)
Total EOP deposits	8			52			(85	)

(1) FVA is included within CVA for presentation purposes. For additional information, see Note 22 to the Consolidated Financial Statements.

NM Not meaningful

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The discussion of the results of operations for Citi Holdings below excludes the impact of CVA/DVA for all periods presented. Presentations of the results of operations, excluding the impact of CVA/DVA, are non-GAAP financial measures. For a reconciliation of these metrics to the reported results, see the table above.

2Q15 vs. 2Q14

Net income was $157 million, an improvement from a net loss of $3.5 billion in the prior-year period, largely due to the impact of the mortgage settlement in the prior-year period (see “Executive Summary” above). Excluding the mortgage settlement, net income declined 33%, primarily driven by lower revenues, partially offset by lower expenses and lower credit costs.

Revenues decreased 16%, primarily driven by the overall continued wind-down of the portfolio and the impact of the recording of OneMain Financial net credit losses as a reduction in revenue (see “Executive Summary” above).

Expenses decreased 78%. Excluding the impact of the mortgage settlement, expenses decreased 13%, primarily reflecting the ongoing decline in assets.

Provisions decreased 36%. Excluding the impact of the mortgage settlement, provision decreased 25%, driven by lower net credit losses, partially offset by a lower net loss reserve release. Net credit losses declined 42%, primarily due to the impact of the recording of OneMain Financial net credit losses as a reduction in revenue referenced above. Excluding the impact of the mortgage settlement, the net reserve release decreased 37% to $171 million, primarily due to lower releases related to the North America mortgage portfolio.

2015 YTD vs. 2014 YTD

Year-to-date, Citi Holdings has experienced similar trends to those described above. Net income was $306 million, an improvement from a net loss of $3.8 billion in the prior-year period, largely due to the impact of the mortgage settlement. Excluding the mortgage settlement, net income was $306 million, compared to a net loss of $58 million in the prior-year period, primarily reflecting lower expenses and lower credit costs, partially offset by lower revenues.

Revenues decreased 12%, primarily driven by the overall continued wind-down of the portfolio and the impact of the recording of OneMain Financial net credit losses as a reduction in revenue, partially offset by higher gains on asset sales.

Expenses decreased 68%. Excluding the impact of the mortgage settlement, expenses decreased 31%, primarily reflecting lower legal and related expenses ($143 million compared to $799 million in the prior-year period) and the ongoing decline in assets.

Provisions decreased 19%. Excluding the impact of the mortgage settlement, provision decreased 13%, driven by lower net credit losses, partially offset by a lower net loss reserve release. Net credit losses declined 34%, primarily due to the impact of the recording of OneMain Financial net credit losses as a reduction in revenue, continued improvements in North America mortgages and overall lower asset levels. Excluding the impact of the mortgage settlement, the net reserve release decreased 40% to $372 million, primarily due to lower releases related to the North America mortgage portfolio, partially offset by higher reserve releases related to asset sales.

Payment Protection Insurance (PPI)

As previously disclosed, the alleged mis-selling of PPI by financial institutions in the U.K. has been the subject of intense review and focus by U.K. regulators (for additional information, see Citi’s Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 3, 2014).

During the fourth quarter of 2014, the U.K. Supreme Court issued a ruling in a case involving PPI pursuant to which the court ruled, independent of the sale of the PPI contract, the PPI contract at issue in the case was “unfair” due to the high sales commissions earned and the lack of disclosure to the customer thereof. As a result of the ruling, on May 27, 2015, the U.K. Financial Conduct Authority (FCA) announced that it was considering the court’s ruling, including whether additional rules and/or guidance were necessary with respect to the impact of the decision on PPI customer complaints. It is currently uncertain what impact, if any, this recent court decision, the FCA’s review or the renewed market attention on PPI will have on PPI customer complaints or Citi’s potential liability with respect thereto.

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BALANCE SHEET REVIEW

The following sets forth a general discussion of the changes in certain of the more significant line items of Citi’s Consolidated Balance Sheet. For a description of and additional information on each of these balance sheet categories, see Notes 10, 12, 13, 14 and 17 to the Consolidated Financial Statements. For additional information on Citigroup’s liquidity resources, including its deposits, short-term and long-term debt and secured financing transactions, see “Managing Global Risk—Market Risk—Funding and Liquidity Risk” below.

In billions of dollars	June 30, 2015			March 31, 2015			Dec. 31, 2014			June 30, 2014			EOP 2Q15 vs. 1Q15 Increase (decrease)			% Change		EOP 2Q15 vs. 4Q14 Increase (decrease)			% Change		EOP 2Q15 vs. 2Q14 Increase (decrease)			% Change
Assets
Cash and deposits with banks	$	154		$	156		$	160		$	189		$	(2	)	(1	)%	$	(6	)	(4	)%	$	(35	)	(19	)%
Federal funds sold and securities borrowed or purchased under agreements to resell	237			239			243			250			(2		)	(1	)	(6		)	(2	)	(13		)	(5	)
Trading account assets	279			303			297			291			(24		)	(8	)	(18		)	(6	)	(12		)	(4	)
Investments	332			327			333			326			5			2		(1		)	—		6			2
Loans, net of unearned income	632			621			645			668			11			2		(13		)	(2	)	(36		)	(5	)
Allowance for loan losses	(14		)	(15		)	(16		)	(18		)	1			(7	)	2			(13	)	4			(22	)
Loans, net	618			606			629			650			12			2		(11		)	(2	)	(32		)	(5	)
Other assets	209			201			180			203			8			4		29			16		6			3
Total assets	$	1,829		$	1,832		$	1,842		$	1,909		$	(3	)	—	%	$	(13	)	(1	)%	$	(80	)	(4	)%
Liabilities
Deposits	$	908		$	900		$	899		$	966		$	8		1	%	$	9		1	%	$	(58	)	(6	)%
Federal funds purchased and securities loaned or sold under agreements to repurchase	177			175			173			184			2			1		4			2		(7		)	(4	)
Trading account liabilities	136			142			139			123			(6		)	(4	)	(3		)	(2	)	13			11
Short-term borrowings	26			39			58			60			(13		)	(33	)	(32		)	(55	)	(34		)	(57	)
Long-term debt	212			211			223			227			1			—		(11		)	(5	)	(15		)	(7	)
Other liabilities	149			149			138			136			—			—		11			8		13			10
Total liabilities	$	1,608		$	1,616		$	1,630		$	1,696		$	(8	)	—	%	$	(22	)	(1	)%	$	(88	)	(5	)%
Total equity	221			216			212			213			5			2		9			4		8			4
Total liabilities and equity	$	1,829		$	1,832		$	1,842		$	1,909		$	(3	)	—	%	$	(13	)	(1	)%	$	(80	)	(4	)%

ASSETS

Cash and Deposits with Banks

Cash and deposits with banks decreased from the prior-year period as Citi continued to deploy its excess cash by increasing its investment portfolio to manage its interest rate position as well as reduce its short-term and long-term borrowings. Average cash balances were $156 billion in the second quarter of 2015 compared to $192 billion in the second quarter of 2014.

Federal Funds Sold and Securities Borrowed or Purchased Under Agreements to Resell (Reverse Repos)

Reverse repos and securities borrowing transactions declined 5% from the prior-year period primarily due to the impact of FX translation (for additional information, see “Managing Global Risk-Market Risk-Funding and Liquidity Risk” below).

Trading Account Assets

The decrease in trading account assets from the prior-year period was primarily due to the impact of FX translation, partially offset by an increase in the carrying value of Citi's

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derivatives positions. Average trading account assets were $296 billion in the second quarter of 2015 compared to $287 billion in the second quarter of 2014.

Investments

The sequential and year-over-year increase in investments reflected Citi’s continued deployment of its excess cash (as discussed above) by investing in available-for-sale securities, particularly in U.S. treasuries. For further information on Citi’s investments during the current quarter, see Note 13 to the Consolidated Financial Statements.

Loans

The impact of FX translation on Citi’s reported loans was negative $27 billion versus the prior-year period and negligible sequentially. Excluding the impact of FX translation, Citigroup end of period loans declined 1% year-over-year to $632 billion as 4% growth in Citicorp was more than offset by the continued wind-down of Citi Holdings.

Citicorp consumer loans grew 1% year-over-year, with broad-based growth driving a 3% increase in international consumer loans. Corporate loans grew 6% year-over-year, as 13% combined growth in corporate lending, markets and private bank volumes, particularly in North America and EMEA, was partially offset by an 11% decline in treasury and trade solutions loans. Spread compression in trade, particularly in Asia, led to a reduction of on-balance sheet loans while Citi continued to support new originations for its clients.

Citi Holdings loans decreased 33% year-over-year driven by an approximately $16 billion reduction in North America mortgages, as well as the previously announced impact of the agreements to sell OneMain Financial and Citi’s Japan credit card business.

Sequentially, growth in Citicorp, driven by corporate lending and North America GCB more than offset the continued wind-down of Citi Holdings.

During the second quarter of 2015, average loans of $627 billion yielded an average rate of 6.4%, compared to $635 billion and 6.8% in the first quarter of 2015 and $665 billion and 6.9% in the second quarter of 2014.

For further information on Citi’s loan portfolios, see “Managing Global Risk-Credit Risk” and “Country Risk” below.

Other Assets

The year-over-year increase in other assets was largely due to the previously announced reclassification to held-for-sale of OneMain Financial and Citi’s Japan credit card businesses. Sequentially, the increase in other assets was primarily due to changes in brokerage receivables driven by normal business fluctuations.

LIABILITIES

Deposits

For a discussion of Citi’s deposits, see “Managing Global Risk-Market Risk-Funding and Liquidity Risk” below.

Federal Funds Purchased and Securities Loaned or Sold Under Agreements to Repurchase (Repos)

Repos decreased 4% from the prior-year period, primarily driven by the impact of FX translation. For further information on Citi’s secured financing transactions, see “Managing Global Risk-Market Risk-Funding and Liquidity” below.

Trading Account Liabilities

Trading account liabilities increased from the prior-year period due to an increase in the carrying value of Citi's derivatives positions, partially offset by the impact of FX translation. Average trading account liabilities were $138 billion during the second quarter of 2015, compared to $130 billion in the second quarter of 2014.

Debt

For information on Citi’s long-term and short-term debt borrowings, see “Managing Global Risk-Market Risk-Funding and Liquidity Risk” below.

Other Liabilities

The increase in other liabilities from the prior-year period was primarily driven by the previously announced reclassification to held-for-sale of Citi’s Japan retail banking business, as well as changes in the levels of brokerage payables driven by normal business fluctuations.

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Segment Balance Sheet⁽¹⁾ 

In millions of dollars	Global Consumer Banking		Institutional Clients Group		Corporate/Other and Consolidating Eliminations(2)			Subtotal Citicorp			Citi Holdings			Citigroup Parent Company- Issued Long-Term Debt and Stockholders’ Equity(3)			Total Citigroup Consolidated
Assets
Cash and deposits with banks	$	11,127	$	76,670	$	65,668		$	153,465		$	633		$	—		$	154,098
Federal funds sold and securities borrowed or purchased under agreements to resell	432		235,395		—			235,827			1,227			—			237,054
Trading account assets	5,084		270,179		538			275,801			3,396			—			279,197
Investments	20,248		93,305		210,189			323,742			8,379			—			332,121
Loans, net of unearned income and
allowance for loan losses	275,447		287,231		—			562,678			55,365			—			618,043
Other assets	45,700		94,249		44,901			184,850			24,007			—			208,857
Liquidity assets(4)	37,013		209,155		(269,033		)	(22,865		)	22,865			—			—
Total assets	$	395,051	$	1,266,184	$	52,263		$	1,713,498		$	115,872		$	—		$	1,829,370
Liabilities and equity
Total deposits (5)	$	305,091	$	588,104	$	7,120		$	900,315		$	7,722		$	—		$	908,037
Federal funds purchased and securities loaned or sold under agreements to repurchase	5,078		171,818		—			176,896			116			—			177,012
Trading account liabilities	12		135,401		32			135,445			850			—			136,295
Short-term borrowings	187		24,719		1,011			25,917			(10		)	—			25,907
Long-term debt	1,342		36,044		19,600			56,986			3,754			151,105			211,845
Other liabilities	17,431		79,899		16,683			114,013			35,436			—			149,449
Net inter-segment funding (lending)(3)	65,910		230,199		6,432			302,541			68,004			(370,545		)	—
Total liabilities	$	395,051	$	1,266,184	$	50,878		$	1,712,113		$	115,872		$	(219,440	)	$	1,608,545
Total equity	—		—		1,385			1,385			—			219,440			220,825
Total liabilities and equity	$	395,051	$	1,266,184	$	52,263		$	1,713,498		$	115,872		$	—		$	1,829,370

(1) The supplemental information presented in the table above reflects Citigroup’s consolidated GAAP balance sheet by reporting segment as of June 30, 2015. The respective segment information depicts the assets and liabilities managed by each segment as of such date. While this presentation is not defined by GAAP, Citi believes that these non-GAAP financial measures enhance investors’ understanding of the balance sheet components managed by the underlying business segments, as well as the beneficial inter-relationships of the asset and liability dynamics of the balance sheet components among Citi’s business segments.

(2) Consolidating eliminations for total Citigroup and Citigroup parent company assets and liabilities are recorded within the Corporate/Other segment.

(3) The total stockholders’ equity and the majority of long-term debt of Citigroup reside in the Citigroup parent company Consolidated Balance Sheet. Citigroup allocates stockholders’ equity and long-term debt to its businesses through inter-segment allocations as shown above.

(4) Represents the attribution of Citigroup’s liquidity assets (primarily consisting of cash and available-for-sale securities) to the various businesses based on Liquidity Coverage Ratio (LCR) assumptions.

(5) Reflects reclassification of approximately $20 billion of deposits to held-for-sale (Other liabilities) as a result of the agreement in December 2014 to sell Citi’s retail banking business in Japan.

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OFF-BALANCE SHEET ARRANGEMENTS

The table below shows where a discussion of Citi’s various off balance sheet arrangements may be found in this Form 10-Q. For additional information on Citi’s off-balance sheet arrangements, see “Off-Balance Sheet Arrangements,” “Significant Accounting Policies and Significant Estimates—Securitizations” and Notes 1, 22 and 27 to the Consolidated Financial Statements in Citigroup’s 2014 Annual Report on Form 10-K.

Types of Off-Balance Sheet Arrangements Disclosures in this Form 10-Q

Variable interests and other obligations, including contingent obligations, arising from variable interests in nonconsolidated VIEs	See Note 20 to the Consolidated Financial Statements.
Letters of credit, and lending and other commitments	See Note 24 to the Consolidated Financial Statements.
Guarantees	See Note 24 to the Consolidated Financial Statements.

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CAPITAL RESOURCES

Overview

Capital is used principally to support assets in Citi’s businesses and to absorb credit, market and operational losses. Citi primarily generates capital through earnings from its operating businesses. Citi may augment its capital through issuances of common stock, noncumulative perpetual preferred stock and equity issued through awards under employee benefit plans, among other issuances. During the second quarter of 2015, Citi continued to raisecapital through a noncumulative perpetual preferred stock issuance amounting to approximately $2 billion, resulting in a total of approximately $14 billion outstanding as of June 30, 2015. In addition, during the 2015 second quarter, Citi also returned a total of $1.7 billion of capital to common shareholders in the form of share repurchases (approximately 28 million common shares) and dividends.

Further, Citi’s capital levels may also be affected by changes in regulatory and accounting standards as well as the impact of future events on Citi’s business results, such as corporate and asset dispositions.

Capital Management

Citigroup’s capital management framework is designed to ensure that Citigroup and its principal subsidiaries maintain sufficient capital consistent with each entity’s respective risk profile and all applicable regulatory standards and guidelines. For additional information regarding Citigroup’s capital management, see “Capital Resources—Capital Management” in Citigroup’s 2014 Annual Report on Form 10-K.

Current Regulatory Capital Standards

Citi is subject to regulatory capital standards issued by the Federal Reserve Board which, commencing with 2014, constitute the U.S. Basel III rules. These rules establish an integrated capital adequacy framework, encompassing both risk-based capital ratios and leverage ratios.

Risk-Based Capital Ratios

The U.S. Basel III rules set forth the composition of regulatory capital (including the application of regulatory capital adjustments and deductions), as well as two comprehensive methodologies (a Standardized Approach and Advanced Approaches) for measuring total risk-weighted assets. Total risk-weighted assets under the Advanced Approaches, which are primarily models-based, include credit, market, and operational risk-weighted assets. Conversely, the Standardized Approach excludes operational risk-weighted assets and generally applies prescribed supervisory risk weights to broad categories of credit risk exposures. As a result, credit risk-weighted assets calculated under the Advanced Approaches are more risk-sensitive than those calculated under the Standardized Approach. Market risk-weighted assets are derived on a generally consistent basis under both approaches.

The U.S. Basel III rules establish stated minimum Common Equity Tier 1 Capital, Tier 1 Capital and Total Capital ratios for substantially all U.S. banking organizations, including Citi and Citibank, N.A. Moreover, these rules provide for both a fixed Capital Conservation Buffer and a discretionary Countercyclical Capital Buffer, which would be available to absorb losses in advance of any potential impairment of regulatory capital below the stated minimum risk-based capital ratio requirements. Separately, in July 2015 the Federal Reserve Board released a final rule which imposes a risk-based capital surcharge upon U.S. bank holding companies that are identified as global systemically important bank holding companies (GSIBs), including Citi, and which will be an extension of, and introduced in parallel with, the Capital Conservation Buffer. For additional information regarding the Federal Reserve Board’s final GSIB surcharge rule, see “Regulatory Capital Standards Developments” below.

The U.S. Basel III rules contain several differing, largely multi-year transition provisions (i.e., “phase-ins” and “phase-outs”) with respect to the stated minimum Common Equity Tier 1 Capital and Tier 1 Capital ratio requirements, substantially all regulatory capital adjustments and deductions, non-qualifying Tier 1 and Tier 2 Capital instruments (such as non-grandfathered trust preferred securities and certain subordinated debt issuances), capital buffers and GSIB surcharge. With the exception of the non-grandfathered trust preferred securities which do not fully phase-out until January 1, 2022 and the capital buffers and GSIB surcharge which do not fully phase-in until January 1, 2019, all other transition provisions will be entirely reflected in Citi’s regulatory capital ratios by January 1, 2018. Citi considers all of these transition provisions as being fully implemented on January 1, 2019 (full implementation), with the inclusion of the capital buffers and GSIB surcharge.

Further, the U.S. Basel III rules implement the “capital floor provision” of the so-called “Collins Amendment” of the Dodd-Frank Act, which requires Advanced Approaches

banking organizations, such as Citi and Citibank, N.A., to calculate each of the three risk-based capital ratios (Common Equity Tier 1 Capital, Tier 1 Capital and Total Capital) under both the Standardized Approach starting on January 1, 2015 (or, for 2014, prior to the effective date of the Standardized Approach, the Basel I credit risk and Basel II.5 market risk capital rules) and the Advanced Approaches and publicly report (as well as measure compliance against) the lower of each of the resulting risk-based capital ratios.

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The following chart sets forth the transitional progression to full implementation by January 1, 2019 of the regulatory capital components (i.e., inclusive of the mandatory 2.5% Capital Conservation Buffer and an estimated 3.5% GSIB surcharge, but exclusive of the potential imposition of an additional Countercyclical Capital Buffer) comprising the effective minimum risk-based capital ratios.

Basel III Transition Arrangements: Minimum Risk-Based Capital Ratios

(1) Estimated GSIB surcharge based on Citi’s current understanding and interpretation of the Federal Reserve Board’s final GSIB surcharge rule, released July 2015. For additional information regarding the Federal Reserve Board’s final GSIB surcharge rule, see “Regulatory Capital Standards Developments” below.

The following chart presents the transition arrangements (phase-in and phase-out) under the U.S. Basel III rules for significant regulatory capital adjustments and deductions relative to Citi.

Basel III Transition Arrangements: Significant Regulatory Capital Adjustments and Deductions

	January 1
	2014		2015		2016		2017		2018
Phase-in of Significant Regulatory Capital Adjustments and Deductions
Common Equity Tier 1 Capital(1)	20	%	40	%	60	%	80	%	100	%
Common Equity Tier 1 Capital(2)	20	%	40	%	60	%	80	%	100	%
Additional Tier 1 Capital(2)(3)	80	%	60	%	40	%	20	%	0	%
	100	%	100	%	100	%	100	%	100	%
Phase-out of Significant AOCI Regulatory Capital Adjustments
Common Equity Tier 1 Capital(4)	80	%	60	%	40	%	20	%	0	%

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(1) Includes the phase-in of Common Equity Tier 1 Capital deductions for all intangible assets other than goodwill and mortgage servicing rights (MSRs); and excess over 10%/15% limitations for deferred tax assets (DTAs) arising from temporary differences, significant common stock investments in unconsolidated financial institutions and MSRs. Goodwill (including goodwill “embedded” in the valuation of significant common stock investments in unconsolidated financial institutions) is fully deducted in arriving at Common Equity Tier 1 Capital commencing January 1, 2014. The amount of other intangible assets, aside from MSRs, not deducted in arriving at Common Equity Tier 1 Capital are risk-weighted at 100%, as are the excess over the 10%/15% limitations for DTAs arising from temporary differences, significant common stock investments in unconsolidated financial institutions and MSRs prior to full implementation of the U.S. Basel III rules. Upon full implementation, the amount of temporary difference DTAs, significant common stock investments in unconsolidated financial institutions and MSRs not deducted in arriving at Common Equity Tier 1 Capital are risk-weighted at 250%.

(2) Includes the phase-in of Common Equity Tier 1 Capital deductions related to DTAs arising from net operating loss, foreign tax credit and general business credit carry-forwards and defined benefit pension plan net assets; and the phase-in of the Common Equity Tier 1 Capital adjustment for cumulative unrealized net gains (losses) related to changes in fair value of financial liabilities attributable to Citi’s own creditworthiness.

(3) To the extent Additional Tier 1 Capital is not sufficient to absorb regulatory capital adjustments and deductions, such excess is to be applied against Common Equity Tier 1 Capital.

(4) Includes the phase-out from Common Equity Tier 1 Capital of adjustments related to unrealized gains (losses) on available-for-sale (AFS) debt securities; unrealized gains on AFS equity securities; unrealized gains (losses) on held-to-maturity (HTM) securities included in Accumulated other comprehensive income (loss) (AOCI); and defined benefit plans liability adjustment.

Tier 1 Leverage Ratio

Under the U.S. Basel III rules, Citi, as with principally all U.S. banking organizations, is also required to maintain a minimum Tier 1 Leverage ratio of 4%. The Tier 1 Leverage ratio, a non-risk-based measure of capital adequacy, is defined as Tier 1 Capital as a percentage of quarterly adjusted average total assets less amounts deducted from Tier 1 Capital.

Supplementary Leverage Ratio

Advanced Approaches banking organizations are additionally required to calculate a Supplementary Leverage ratio, which significantly differs from the Tier 1 Leverage ratio by also including certain off-balance sheet exposures within the denominator of the ratio (Total Leverage Exposure). The Supplementary Leverage ratio represents end of period Tier 1 Capital to Total Leverage Exposure, with the latter defined as the sum of the daily average of on-balance sheet assets for the quarter and the average of certain off-balance sheet exposures calculated as of the last day of each month in the quarter, less applicable Tier 1 Capital deductions. Advanced Approaches banking organizations will be required to maintain a stated minimum Supplementary Leverage ratio of 3% commencing on January 1, 2018, but commenced publicly disclosing this ratio on January 1, 2015.

Further, U.S. GSIBs, and their subsidiary insured depository institutions, including Citi and Citibank, N.A., are subject to enhanced Supplementary Leverage ratio standards. The enhanced Supplementary Leverage ratio standards establish a 2% leverage buffer for U.S. GSIBs in addition to the stated 3% minimum Supplementary Leverage ratio requirement in the U.S. Basel III rules. If a U.S. GSIB fails to exceed the 2% leverage buffer, it will be subject to increasingly onerous restrictions (depending upon the extent of the shortfall) regarding capital distributions and discretionary executive bonus payments. Accordingly, U.S. GSIBs are effectively subject to a 5% minimum Supplementary Leverage ratio requirement. Additionally, insured depository institution subsidiaries of U.S. GSIBs, including Citibank, N.A., are required to maintain a Supplementary Leverage ratio of 6% to be considered “well capitalized” under the revised Prompt Corrective Action (PCA) framework established by the U.S. Basel III rules. Citi and Citibank, N.A. are required to

be compliant with these higher effective minimum ratio requirements on January 1, 2018.

Prompt Corrective Action Framework

The U.S. Basel III rules revised the PCA regulations applicable to insured depository institutions in certain respects.

In general, the PCA regulations direct the U.S. banking agencies to enforce increasingly strict limitations on the activities of insured depository institutions that fail to meet certain regulatory capital thresholds. The PCA framework contains five categories of capital adequacy as measured by risk-based capital and leverage ratios: (i) “well capitalized;” (ii) “adequately capitalized;” (iii) “undercapitalized;” (iv) “significantly undercapitalized;” and (v) “critically undercapitalized.”

Accordingly, beginning January 1, 2015, an insured depository institution, such as Citibank, N.A., would need minimum Common Equity Tier 1 Capital, Tier 1 Capital, Total Capital, and Tier 1 Leverage ratios of 6.5%, 8%, 10% and 5%, respectively, to be considered “well capitalized.” Additionally, Advanced Approaches insured depository institutions, such as Citibank, N.A., would need a minimum Supplementary Leverage ratio of 6%, effective January 1, 2018, to be considered “well capitalized.”

34

Citigroup’s Capital Resources Under Current Regulatory Standards

During 2015 and thereafter, Citi is required to maintain stated minimum Common Equity Tier 1 Capital, Tier 1 Capital and Total Capital ratios of 4.5%, 6% and 8%, respectively. The stated minimum Common Equity Tier 1 Capital and Tier 1 Capital ratio requirements in 2014 were 4% and 5.5%, respectively, while the stated minimum Total Capital ratio requirement of 8% remained unchanged.

Furthermore, to be “well capitalized” under current federal bank regulatory agency definitions, a bank holding

company must have a Tier 1 Capital ratio of at least 6%, a Total Capital ratio of at least 10%, and not be subject to a Federal Reserve Board directive to maintain higher capital levels.

The following tables set forth the capital tiers, risk-weighted assets, risk-based capital ratios, quarterly adjusted average total assets, Total Leverage Exposure and leverage ratios under current regulatory standards (reflecting Basel III Transition Arrangements) for Citi as of June 30, 2015 and December 31, 2014.

Citigroup Capital Components and Ratios Under Current Regulatory Standards (Basel III Transition Arrangements)

	June 30, 2015						December 31, 2014(1)
In millions of dollars, except ratios	Advanced Approaches			Standardized Approach			Advanced Approaches			Standardized Approach(2)
Common Equity Tier 1 Capital	$	172,747		$	172,747		$	166,663		$	166,663
Tier 1 Capital	173,006			173,006			166,663			166,663
Total Capital (Tier 1 Capital + Tier 2 Capital)(3)	193,712			206,374			184,959			197,707
Risk-Weighted Assets	1,253,875			1,188,191			1,274,672			1,211,358
Common Equity Tier 1 Capital ratio(4)	13.78		%	14.54		%	13.07		%	13.76		%
Tier 1 Capital ratio(4)	13.80			14.56			13.07			13.76
Total Capital ratio(4)	15.45			17.37			14.51			16.32

In millions of dollars, except ratios	June 30, 2015				December 31, 2014(1)
Quarterly Adjusted Average Total Assets(5)		$	1,787,880			$	1,849,325
Total Leverage Exposure(6)		2,395,234				2,518,115
Tier 1 Leverage ratio		9.68		%		9.01		%
Supplementary Leverage ratio		7.22				6.62

(1) Restated to reflect the retrospective adoption of ASU 2014-01 for Low Income Housing Tax Credit (LIHTC) investments, consistent with current period presentation.

(2) Pro forma presentation to reflect the application of the Basel III 2015 Standardized Approach, consistent with current period presentation.

(3) Under the Advanced Approaches framework eligible credit reserves that exceed expected credit losses are eligible for inclusion in Tier 2 Capital to the extent the excess reserves do not exceed 0.6% of credit risk-weighted assets, which differs from the Standardized Approach in which the allowance for credit losses is includable in Tier 2 Capital up to 1.25% of credit risk-weighted assets, with any excess allowance for credit losses being deducted in arriving at credit risk-weighted assets.

(4) As of June 30, 2015 and December 31, 2014, Citi’s reportable Common Equity Tier 1 Capital, Tier 1 Capital, and Total Capital ratios were the lower derived under the Basel III Advanced Approaches framework.

(5) Tier 1 Leverage ratio denominator.

(6) Supplementary Leverage ratio denominator.

As indicated in the table above, Citigroup’s capital ratios at June 30, 2015 were in excess of the stated minimum requirements under the U.S. Basel III rules. In addition, Citi was also “well capitalized” under current

federal bank regulatory agency definitions as of June 30, 2015.

35

Components of Citigroup Capital Under Current Regulatory Standards

(Basel III Advanced Approaches with Transition Arrangements)

In millions of dollars	June 30, 2015			December 31, 2014(1)
Common Equity Tier 1 Capital
Citigroup common stockholders’ equity(2)	$	205,610		$	199,841
Add: Qualifying noncontrolling interests	409			539
Regulatory Capital Adjustments and Deductions:
Less: Net unrealized gains (losses) on securities AFS, net of tax(3)(4)	(172		)	46
Less: Defined benefit plans liability adjustment, net of tax(4)	(2,803		)	(4,127		)
Less: Accumulated net unrealized losses on cash flow hedges, net of tax(5)	(731		)	(909		)
Less: Cumulative unrealized net gain related to changes in fair value of financial liabilities    attributable to own creditworthiness, net of tax(4)(6)	190			56
Less: Intangible assets:
Goodwill, net of related deferred tax liabilities (DTLs)(7)	22,312			22,805
Identifiable intangible assets other than mortgage servicing rights (MSRs), net of related    DTLs(4)	1,661			875
Less: Defined benefit pension plan net assets(4)	326			187
Less: Deferred tax assets (DTAs) arising from net operating loss, foreign tax credit and general    business credit carry-forwards(4)(8)	9,504			4,725
Less: Excess over 10%/15% limitations for other DTAs, certain common stock investments,   and MSRs(4)(8)(9)	2,985			1,977
Less: Deductions applied to Common Equity Tier 1 Capital due to insufficient amount of Additional Tier 1 Capital to cover deductions(4)	—			8,082
Total Common Equity Tier 1 Capital	$	172,747		$	166,663
Additional Tier 1 Capital
Qualifying perpetual preferred stock(2)	$	13,830		$	10,344
Qualifying trust preferred securities(10)	1,717			1,719
Qualifying noncontrolling interests	12			7
Regulatory Capital Adjustment and Deductions:
Less: Cumulative unrealized net gain related to changes in fair value of financial liabilities    attributable to own creditworthiness, net of tax(4)(6)	284			223
Less: Minimum regulatory capital requirements of insurance underwriting subsidiaries(11)	271			279
Less: Defined benefit pension plan net assets(4)	489			749
Less: DTAs arising from net operating loss, foreign tax credit and general    business credit carry-forwards(4)(8)	14,256			18,901
Less: Deductions applied to Common Equity Tier 1 Capital due to insufficient amount of Additional    Tier 1 Capital to cover deductions(4)	—			(8,082		)
Total Additional Tier 1 Capital	$	259		$	—
Total Tier 1 Capital (Common Equity Tier 1 Capital + Additional Tier 1 Capital)	$	173,006		$	166,663
Tier 2 Capital
Qualifying subordinated debt(12)	$	19,721		$	17,386
Qualifying noncontrolling interests	17			12
Excess of eligible credit reserves over expected credit losses(13)	1,239			1,177
Regulatory Capital Deduction:
Less: Minimum regulatory capital requirements of insurance underwriting subsidiaries(11)	271			279
Total Tier 2 Capital	$	20,706		$	18,296
Total Capital (Tier 1 Capital + Tier 2 Capital)	$	193,712		$	184,959

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Citigroup Risk-Weighted Assets Under Current Regulatory Standards

(Basel III Advanced Approaches with Transition Arrangements)

In millions of dollars	June 30, 2015		December 31, 2014(1)
Credit Risk(14)	$	833,470	$	861,691
Market Risk	95,405		100,481
Operational Risk	325,000		312,500
Total Risk-Weighted Assets	$	1,253,875	$	1,274,672

(1) Restated to reflect the retrospective adoption of ASU 2014-01 for LIHTC investments, consistent with current period presentation.

(2) Issuance costs of $138 million and $124 million related to preferred stock outstanding at June 30, 2015 and December 31, 2014, respectively, are excluded from common stockholders’ equity and netted against preferred stock in accordance with Federal Reserve Board regulatory reporting requirements, which differ from those under U.S. GAAP.

(3) In addition, includes the net amount of unamortized loss on held-to-maturity (HTM) securities. This amount relates to securities that were previously transferred from AFS to HTM, and non-credit related factors such as changes in interest rates and liquidity spreads for HTM securities with other-than-temporary impairment.

(4) The transition arrangements for significant regulatory capital adjustments and deductions impacting Common Equity Tier 1 Capital and/or Additional Tier 1 Capital are set forth above in the table entitled “Basel III Transition Arrangements: Significant Regulatory Capital Adjustments and Deductions.”

(5) Common Equity Tier 1 Capital is adjusted for accumulated net unrealized gains (losses) on cash flow hedges included in AOCI that relate to the hedging of items not recognized at fair value on the balance sheet.

(6) The cumulative impact of changes in Citigroup’s own creditworthiness in valuing liabilities for which the fair value option has been elected and own-credit valuation adjustments on derivatives are excluded from Common Equity Tier 1 Capital, in accordance with the U.S. Basel III rules.

(7) Includes goodwill “embedded” in the valuation of significant common stock investments in unconsolidated financial institutions.

(8) Of Citi’s approximately $47.9 billion of net DTAs at June 30, 2015, approximately $22.9 billion of such assets were includable in regulatory capital pursuant to the U.S. Basel III rules, while approximately $25.0 billion of such assets were excluded in arriving at regulatory capital. Comprising the excluded net DTAs was an aggregate of approximately $26.7 billion of net DTAs arising from net operating loss, foreign tax credit and general business credit carry-forwards as well as temporary differences, of which $12.5 billion were deducted from Common Equity Tier 1 Capital and $14.2 billion were deducted from Additional Tier 1 Capital. In addition, approximately $1.7 billion of net DTLs, primarily consisting of DTLs associated with goodwill and certain other intangible assets, partially offset by DTAs related to cash flow hedges, are permitted to be excluded prior to deriving the amount of net DTAs subject to deduction under these rules. Separately, under the U.S. Basel III rules, goodwill and these other intangible assets are deducted net of associated DTLs in arriving at Common Equity Tier 1 Capital, while Citi’s current cash flow hedges and the related deferred tax effects are not required to be reflected in regulatory capital.

(9) Assets subject to 10%/15% limitations include MSRs, DTAs arising from temporary differences and significant common stock investments in unconsolidated financial institutions. At June 30, 2015 and December 31, 2014, the deduction related only to DTAs arising from temporary differences that exceeded the 10% limitation.

(10) Represents Citigroup Capital XIII trust preferred securities, which are permanently grandfathered as Tier 1 Capital under the U.S. Basel III rules, as well as non-grandfathered trust preferred securities which are eligible for inclusion in an amount up to 25% and 50%, respectively, during 2015 and 2014, of the aggregate outstanding principal amounts of such issuances as of January 1, 2014. The remaining 75% and 50% of non-grandfathered trust preferred securities are eligible for inclusion in Tier 2 Capital during 2015 and 2014, respectively, in accordance with the transition arrangements for non-qualifying capital instruments under the U.S. Basel III rules. As of June 30, 2015 and December 31, 2014, however, the entire amount of non-grandfathered trust preferred securities was included within Tier 1 Capital, as the amounts outstanding did not exceed the respective threshold for exclusion from Tier 1 Capital.

(11) 50% of the minimum regulatory capital requirements of insurance underwriting subsidiaries must be deducted from each of Tier 1 Capital and Tier 2 Capital.

(12) Under the transition arrangements of the U.S. Basel III rules, non-qualifying subordinated debt issuances which consist of those with a fixed-to-floating rate step-up feature where the call/step-up date has not passed are eligible for inclusion in Tier 2 Capital during 2015 and 2014 up to 25% and 50%, respectively, of the aggregate outstanding principal amounts of such issuances as of January 1, 2014.

(13) Advanced Approaches banking organizations are permitted to include in Tier 2 Capital eligible credit reserves that exceed expected credit losses to the extent that the excess reserves do not exceed 0.6% of credit risk-weighted assets.

(14) Under the U.S. Basel III rules, credit risk-weighted assets during the transition period reflect the effects of transitional arrangements related to regulatory capital adjustments and deductions and, as a result, will differ from credit risk-weighted assets derived under full implementation of the rules.

37

Citigroup Capital Rollforward Under Current Regulatory Standards

(Basel III Advanced Approaches with Transition Arrangements)

In millions of dollars	Three Months Ended   June 30, 2015			Six Months Ended June 30, 2015
Common Equity Tier 1 Capital
Balance, beginning of period(1)	$	168,021		$	166,663
Net income	4,846			9,616
Dividends declared	(355		)	(514		)
Net increase in treasury stock	(1,553		)	(1,850		)
Net increase in additional paid-in capital(2)	303			405
Net increase in foreign currency translation adjustment net of hedges, net of tax	(148		)	(2,210		)
Net increase in unrealized gains on securities AFS, net of tax(3)	(374		)	(126		)
Net change in defined benefit plans liability adjustment, net of tax(3)	232			(836		)
Net increase in cumulative unrealized net gain related to changes in fair value of     financial liabilities attributable to own creditworthiness, net of tax	(57		)	(134		)
Net decrease in goodwill, net of related deferred tax liabilities (DTLs)	136			493
Net change in identifiable intangible assets other than mortgage servicing rights (MSRs),     net of related DTLs	13			(786		)
Net change in defined benefit pension plan net assets	33			(139		)
Net increase in deferred tax assets (DTAs) arising from net operating loss, foreign     tax credit and general business credit carry-forwards	(228		)	(4,779		)
Net change in excess over 10%/15% limitations for other DTAs, certain common stock     investments and MSRs	510			(1,008		)
Net decrease in regulatory capital deduction applied to Common Equity Tier 1 Capital     due to insufficient Additional Tier 1 Capital to cover deductions	1,368			8,082
Other	—			(130		)
Net increase in Common Equity Tier 1 Capital	$	4,726		$	6,084
Common Equity Tier 1 Capital Balance, end of period	$	172,747		$	172,747
Additional Tier 1 Capital
Balance, beginning of period	$	—		$	—
Net increase in qualifying perpetual preferred stock(4)	1,992			3,486
Net change in qualifying trust preferred securities	7			(2		)
Net increase in cumulative unrealized net gain related to changes in fair value of     financial liabilities attributable to own creditworthiness, net of tax	(85		)	(61		)
Net decrease in defined benefit pension plan net assets	49			260
Net change in DTAs arising from net operating loss, foreign tax credit and general     business credit carry-forwards	(342		)	4,645
Net decrease in regulatory capital deduction applied to Common Equity Tier 1 Capital     due to insufficient Additional Tier 1 Capital to cover deductions	(1,368		)	(8,082		)
Other	6			13
Net increase in Additional Tier 1 Capital	$	259		$	259
Tier 1 Capital Balance, end of period	$	173,006		$	173,006
Tier 2 Capital
Balance, beginning of period	$	17,193		$	18,296
Net increase in qualifying subordinated debt	3,221			2,335
Net increase in excess of eligible credit reserves over expected credit losses	286			62
Other	6			13
Net increase in Tier 2 Capital	$	3,513		$	2,410
Tier 2 Capital Balance, end of period	$	20,706		$	20,706
Total Capital (Tier 1 Capital + Tier 2 Capital)	$	193,712		$	193,712

(1) The beginning balance of Common Equity Tier 1 Capital for the six months ended June 30, 2015 has been restated to reflect the retrospective adoption of ASU 2014-01 for LIHTC investments, consistent with current period presentation.

(2) Primarily represents an increase in additional paid-in capital related to employee benefit plans.

38

(3) Presented net of impact of transition arrangements related to unrealized losses on securities AFS and defined benefit plans liability adjustment under the U.S. Basel III rules.

(4) Citi issued approximately $2.0 billion and approximately $3.5 billion of qualifying perpetual preferred stock during the three months and six months ended June 30, 2015, respectively, which were partially offset by the netting of issuance costs of $8 million and $14 million during those respective periods.

Citigroup Risk-Weighted Assets Rollforward Under Current Regulatory Standards

(Basel III Advanced Approaches with Transition Arrangements)

In millions of dollars	Three Months Ended   June 30, 2015			Six Months Ended   June 30, 2015
Total Risk-Weighted Assets, beginning of period(1)	$	1,260,403		$	1,274,672
Changes in Credit Risk-Weighted Assets
Net change in retail exposures(2)	7,213			(4,617		)
Net change in wholesale exposures(3)	6,135			(6,689		)
Net increase in repo-style transactions	67			498
Net increase in securitization exposures	347			2,634
Net change in equity exposures	452			(456		)
Net decrease in over-the-counter (OTC) derivatives	(3,438		)	(2,881		)
Net decrease in derivatives CVA(4)	(4,038		)	(3,549		)
Net decrease in other exposures(5)	(10,451		)	(11,764		)
Net change in supervisory 6% multiplier(6)	20			(1,397		)
Net decrease in Credit Risk-Weighted Assets	$	(3,693	)	$	(28,221	)
Changes in Market Risk-Weighted Assets
Net decrease in risk levels	$	(808	)	$	(5,712	)
Net change due to model and methodology updates	(2,027		)	636
Net decrease in Market Risk-Weighted Assets	$	(2,835	)	$	(5,076	)
Increase in Operational Risk-Weighted Assets(7)	$	—		$	12,500
Total Risk-Weighted Assets, end of period	$	1,253,875		$	1,253,875

(1) The beginning balance of Total Risk-Weighted Assets for the six months ended June 30, 2015 has been restated to reflect the retrospective adoption of ASU 2014-01 for LIHTC investments, consistent with current period presentation.

(2) Retail exposures increased during the three months ended June 30, 2015 primarily due to the reclassification from other exposures of certain non-material portfolios, partially offset by reductions in loans and commitments. Conversely, retail exposures decreased during the six months ended June 30, 2015 due to reductions in loans and commitments and the impact of FX translation, partially offset by the reclassification from other exposures of certain non-material portfolios.

(3) Wholesale exposures increased during the three months ended June 30, 2015 primarily due to an increase in commitments and the reclassification from other exposures of certain non-material portfolios. Conversely, wholesale exposures decreased during the six months ended June 30, 2015 due to reductions in commitments and the impact of FX translation, partially offset by the reclassification from other exposures of certain non-material portfolios.

(4) Derivatives CVA decreased during both the three and six months ended June 30, 2015, driven by exposure reduction and credit spread changes related to certain sovereign obligors.

(5) Other exposures include cleared transactions, unsettled transactions, assets other than those reportable in specific exposure categories and non-material portfolios. Other exposures decreased during both the three and six months ended June 30, 2015 as a result of the reclassification to retail exposures and wholesale exposures of certain non-material portfolios.

(6) Supervisory 6% multiplier does not apply to derivatives CVA.

(7) Operational risk-weighted assets increased by $12.5 billion during the first quarter of 2015, reflecting an evaluation of ongoing events in the banking industry as well as continued enhancements to Citi’s operational risk model.

39

Capital Resources of Citigroup’s Subsidiary U.S. Depository Institutions Under Current Regulatory Standards

Citigroup’s subsidiary U.S. depository institutions are also subject to regulatory capital standards issued by their respective primary federal bank regulatory agencies, which are similar to the standards of the Federal Reserve Board.

The following tables set forth the capital tiers, risk-weighted assets, risk-based capital ratios, quarterly adjusted average total assets, Total Leverage Exposure and leverage ratios under current regulatory standards (reflecting Basel III Transition Arrangements) for Citibank, N.A., Citi’s primary subsidiary U.S. depository institution, as of June 30, 2015 and December 31, 2014.

Citibank, N.A. Capital Components and Ratios Under Current Regulatory Standards (Basel III Transition Arrangements)

	June 30, 2015						December 31, 2014(1)
In millions of dollars, except ratios	Advanced Approaches			Standardized Approach			Advanced Approaches			Standardized Approach(2)
Common Equity Tier 1 Capital	$	129,033		$	129,033		$	128,262		$	128,262
Tier 1 Capital	129,033			129,033			128,262			128,262
Total Capital (Tier 1 Capital + Tier 2 Capital)(3)	140,316			151,595			139,246			151,124
Risk-Weighted Assets	913,651			1,015,880			945,407			1,044,768
Common Equity Tier 1 Capital ratio(4)	14.12		%	12.70		%	13.57		%	12.28		%
Tier 1 Capital ratio(4)	14.12			12.70			13.57			12.28
Total Capital ratio(4)	15.36			14.92			14.73			14.46

In millions of dollars, except ratios	June 30, 2015				December 31, 2014(1)
Quarterly Adjusted Average Total Assets(5)		$	1,315,273			$	1,366,910
Total Leverage Exposure(6)		1,864,298				1,954,833
Tier 1 Leverage ratio		9.81		%		9.38		%
Supplementary Leverage ratio		6.92				6.56

(1) Restated to reflect the retrospective adoption of ASU 2014-01 for LIHTC investments, consistent with current period presentation.

(2) Pro forma presentation to reflect the application of the Basel III 2015 Standardized Approach, consistent with current period presentation.

(3) Under the Advanced Approaches framework eligible credit reserves that exceed expected credit losses are eligible for inclusion in Tier 2 Capital to the extent the excess reserves do not exceed 0.6% of credit risk-weighted assets, which differs from the Standardized Approach in which the allowance for credit losses is includable in Tier 2 Capital up to 1.25% of credit risk-weighted assets, with any excess allowance for credit losses being deducted in arriving at credit risk-weighted assets.

(4) As of June 30, 2015 and December 31, 2014, Citibank, N.A.’s reportable Common Equity Tier 1 Capital, Tier 1 Capital, and Total Capital ratios were the lower derived under the Basel III Standardized Approach.

(5) Tier 1 Leverage ratio denominator.

(6) Supplementary Leverage ratio denominator.

As indicated in the table above, Citibank N.A.’s capital ratios at June 30, 2015 were in excess of the stated minimum requirements under the U.S. Basel III rules. In addition, Citibank, N.A. was also “well capitalized” as of June 30, 2015 under the revised PCA regulations which became effective January 1, 2015.

40

Impact of Changes on Citigroup and Citibank, N.A. Capital Ratios Under Current Regulatory Capital Standards

The following tables present the estimated sensitivity of Citigroup’s and Citibank, N.A.’s capital ratios to changes of $100 million in Common Equity Tier 1 Capital, Tier 1 Capital and Total Capital (numerator), and changes of $1 billion in Advanced Approaches and Standardized Approach risk-weighted assets, quarterly adjusted average total assets, as well as Total Leverage Exposure (denominator), under current regulatory capital standards (reflecting Basel III Transition Arrangements), as of

June 30, 2015. This information is provided for the purpose of analyzing the impact that a change in Citigroup’s or Citibank, N.A.’s financial position or results of operations could have on these ratios. These sensitivities only consider a single change to either a component of capital, risk-weighted assets, quarterly adjusted average total assets, or Total Leverage Exposure. Accordingly, an event that affects more than one factor may have a larger basis point impact than is reflected in these tables.

Impact of Changes on Citigroup and Citibank, N.A. Risk-Based Capital Ratios (Basel III Transition Arrangements)

	Common Equity Tier 1 Capital ratio		Tier 1 Capital ratio		Total Capital ratio
	Impact of $100 million change in Common Equity Tier 1 Capital	Impact of $1 billion change in risk- weighted assets	Impact of $100 million change in Tier 1 Capital	Impact of $1 billion change in risk- weighted assets	Impact of $100 million change in Total Capital	Impact of $1 billion change in risk- weighted assets
Citigroup
Advanced Approaches	0.8 bps	1.1 bps	0.8 bps	1.1 bps	0.8 bps	1.2 bps
Standardized Approach	0.8 bps	1.2 bps	0.8 bps	1.2 bps	0.8 bps	1.5 bps
Citibank, N.A.
Advanced Approaches	1.1 bps	1.5 bps	1.1 bps	1.5 bps	1.1 bps	1.7 bps
Standardized Approach	1.0 bps	1.3 bps	1.0 bps	1.3 bps	1.0 bps	1.5 bps

Impact of Changes on Citigroup and Citibank, N.A. Leverage Ratios (Basel III Transition Arrangements)

	Tier 1 Leverage ratio		Supplementary Leverage ratio
	Impact of $100 million change in Tier 1 Capital	Impact of $1 billion change in quarterly adjusted average total assets	Impact of $100 million change in Tier 1 Capital	Impact of $1 billion change in Total Leverage Exposure
Citigroup	0.6 bps	0.5 bps	0.4 bps	0.3 bps
Citibank, N.A.	0.8 bps	0.7 bps	0.5 bps	0.4 bps

Citigroup Broker-Dealer Subsidiaries

At June 30, 2015, Citigroup Global Markets Inc., a U.S. broker-dealer registered with the SEC that is an indirect wholly owned subsidiary of Citigroup, had net capital, computed in accordance with the SEC’s net capital rule, of $6.9 billion, which exceeded the minimum requirement by $5.6 billion.

In addition, certain of Citi’s other broker-dealer subsidiaries are subject to regulation in the countries in which they do business, including requirements to maintain specified levels of net capital or its equivalent. Citigroup’s other broker-dealer subsidiaries were in compliance with

their capital requirements at June 30, 2015.

41

Basel III (Full Implementation)

Citigroup’s Capital Resources Under Basel III

(Full Implementation)

Citi currently estimates that its effective minimum Common Equity Tier 1 Capital, Tier 1 Capital and Total Capital ratio requirements under the U.S. Basel III rules, on a fully implemented basis and assuming a 3.5% GSIB surcharge, may be 10.5%, 12% and 14%, respectively.

Further, under the U.S. Basel III rules, Citi must also comply with a 4% minimum Tier 1 Leverage ratio requirement and an effective 5% minimum Supplementary Leverage ratio requirement.

The following tables set forth the capital tiers, risk-weighted assets, risk-based capital ratios, quarterly adjusted average total assets, Total Leverage Exposure and leverage ratios, assuming full implementation under the U.S. Basel III rules, for Citi as of June 30, 2015 and December 31, 2014.

Citigroup Capital Components and Ratios Under Basel III (Full Implementation)

	June 30, 2015						December 31, 2014(1)
In millions of dollars, except ratios	Advanced Approaches			Standardized Approach			Advanced Approaches			Standardized Approach
Common Equity Tier 1 Capital	$	145,435		$	145,435		$	136,597		$	136,597
Tier 1 Capital	160,391			160,391			148,066			148,066
Total Capital (Tier 1 Capital + Tier 2 Capital)(2)	180,846			193,693			165,454			178,413
Risk-Weighted Assets	1,278,593			1,211,694			1,292,605			1,228,488
Common Equity Tier 1 Capital ratio(3)(4)	11.37		%	12.00		%	10.57		%	11.12		%
Tier 1 Capital ratio(3)(4)	12.54			13.24			11.45			12.05
Total Capital ratio(3)(4)	14.14			15.99			12.80			14.52

In millions of dollars, except ratios	June 30, 2015				December 31, 2014(1)
Quarterly Adjusted Average Total Assets(5)		$	1,778,835			$	1,835,637
Total Leverage Exposure(6)		2,386,189				2,492,636
Tier 1 Leverage ratio(4)		9.02		%		8.07		%
Supplementary Leverage ratio(4)		6.72				5.94

(1) Restated to reflect the retrospective adoption of ASU 2014-01 for LIHTC investments, consistent with current period presentation.

(2) Under the Advanced Approaches framework eligible credit reserves that exceed expected credit losses are eligible for inclusion in Tier 2 Capital to the extent the excess reserves do not exceed 0.6% of credit risk-weighted assets, which differs from the Standardized Approach in which the allowance for credit losses is includable in Tier 2 Capital up to 1.25% of credit risk-weighted assets, with any excess allowance for credit losses being deducted in arriving at credit risk-weighted assets.

(3) As of June 30, 2015 and December 31, 2014, Citi’s Common Equity Tier 1 Capital, Tier 1 Capital, and Total Capital ratios were the lower derived under the Basel III Advanced Approaches framework.

(4) Citi’s Basel III capital ratios, on a fully implemented basis, are non-GAAP financial measures.

(5) Tier 1 Leverage ratio denominator.

(6) Supplementary Leverage ratio denominator.

42

Common Equity Tier 1 Capital Ratio

Citi’s Common Equity Tier 1 Capital ratio was 11.4% at June 30, 2015, compared to 11.1% at March 31, 2015 and 10.6% at December 31, 2014 (all based on application of the Advanced Approaches for determining total risk-weighted assets). The quarter-over-quarter increase in the ratio was largely attributable to Common Equity Tier 1 Capital benefits resulting from quarterly net income of $4.8 billion and the favorable effects attributable to DTA utilization of approximately $0.3 billion, offset in part by a $1.7 billion return of capital to common shareholders in the form of share repurchases and dividends. Similarly, the increase in Citi’s Common Equity Tier 1 Capital ratio from year-end 2014 reflected continued growth in Common Equity Tier 1 Capital resulting from net income of $9.6 billion as well as the favorable effects attributable to DTA utilization of approximately $1.5 billion, offset in part by the return of capital to common shareholders and a net decline in AOCI.

43

Components of Citigroup Capital Under Basel III (Advanced Approaches with Full Implementation)

In millions of dollars	June 30, 2015			December 31, 2014(1)
Common Equity Tier 1 Capital
Citigroup common stockholders’ equity(2)	$	205,610		$	199,841
Add: Qualifying noncontrolling interests	146			165
Regulatory Capital Adjustments and Deductions:
Less: Accumulated net unrealized losses on cash flow hedges, net of tax(3)	(731		)	(909		)
Less: Cumulative unrealized net gain related to changes in fair value of financial liabilities    attributable to own creditworthiness, net of tax(4)	474			279
Less: Intangible assets:
Goodwill, net of related deferred tax liabilities (DTLs)(5)	22,312			22,805
Identifiable intangible assets other than mortgage servicing rights (MSRs), net of related DTLs	4,153			4,373
Less: Defined benefit pension plan net assets	815			936
Less: Deferred tax assets (DTAs) arising from net operating loss, foreign tax credit and general    business credit carry-forwards(6)	23,760			23,626
Less: Excess over 10%/15% limitations for other DTAs, certain common stock investments,   and MSRs(6)(7)	9,538			12,299
Total Common Equity Tier 1 Capital	$	145,435		$	136,597
Additional Tier 1 Capital
Qualifying perpetual preferred stock(2)	$	13,830		$	10,344
Qualifying trust preferred securities(8)	1,366			1,369
Qualifying noncontrolling interests	31			35
Regulatory Capital Deduction:
Less: Minimum regulatory capital requirements of insurance underwriting subsidiaries(9)	271			279
Total Additional Tier 1 Capital	$	14,956		$	11,469
Total Tier 1 Capital (Common Equity Tier 1 Capital + Additional Tier 1 Capital)	$	160,391		$	148,066
Tier 2 Capital
Qualifying subordinated debt(10)	$	19,095		$	16,094
Qualifying trust preferred securities(11)	351			350
Qualifying noncontrolling interests	41			46
Excess of eligible credit reserves over expected credit losses(12)	1,239			1,177
Regulatory Capital Deduction:
Less: Minimum regulatory capital requirements of insurance underwriting subsidiaries(9)	271			279
Total Tier 2 Capital	$	20,455		$	17,388
Total Capital (Tier 1 Capital + Tier 2 Capital)(13)	$	180,846		$	165,454

(1) Restated to reflect the retrospective adoption of ASU 2014-01 for LIHTC investments, consistent with current period presentation.

(2) Issuance costs of $138 million and $124 million related to preferred stock outstanding at June 30, 2015 and December 31, 2014, respectively, are excluded from common stockholders’ equity and netted against preferred stock in accordance with Federal Reserve Board regulatory reporting requirements, which differ from those under U.S. GAAP.

(3) Common Equity Tier 1 Capital is adjusted for accumulated net unrealized gains (losses) on cash flow hedges included in AOCI that relate to the hedging of items not recognized at fair value on the balance sheet.

(4) The cumulative impact of changes in Citigroup’s own creditworthiness in valuing liabilities for which the fair value option has been elected and own-credit valuation adjustments on derivatives are excluded from Common Equity Tier 1 Capital, in accordance with the U.S. Basel III rules.

(5) Includes goodwill “embedded” in the valuation of significant common stock investments in unconsolidated financial institutions.

(6) Of Citi’s approximately $47.9 billion of net DTAs at June 30, 2015, approximately $16.3 billion of such assets were includable in regulatory capital pursuant to the U.S. Basel III rules, while approximately $31.6 billion of such assets were excluded in arriving at Common Equity Tier 1 Capital. Comprising the excluded net DTAs was an aggregate of approximately $33.3 billion of net DTAs arising from net operating loss, foreign tax credit and general business credit carry-forwards as well as temporary differences that were deducted from Common Equity Tier 1 Capital. In addition, approximately $1.7 billion of net DTLs, primarily consisting of DTLs associated with goodwill and certain other intangible assets, partially offset by DTAs related to cash flow hedges, are permitted to be excluded prior to deriving the amount of net DTAs subject to deduction under these rules. Separately, under the U.S. Basel III rules, goodwill and these other intangible assets are deducted net of associated DTLs in arriving at Common Equity Tier 1 Capital, while Citi’s current cash flow hedges and the related deferred tax effects are not required to be reflected in regulatory capital.

(7) Assets subject to 10%/15% limitations include MSRs, DTAs arising from temporary differences and significant common stock investments in unconsolidated financial institutions. At June 30, 2015, the deduction related only to DTAs arising from temporary differences that exceeded the 10% limitation, while at December 31, 2014, the deduction related to all three assets which exceeded both the 10% and 15% limitations.

(8) Represents Citigroup Capital XIII trust preferred securities, which are permanently grandfathered as Tier 1 Capital under the U.S. Basel III rules.

44

(9) 50% of the minimum regulatory capital requirements of insurance underwriting subsidiaries must be deducted from each of Tier 1 Capital and Tier 2 Capital.

(10) Non-qualifying subordinated debt issuances which consist of those with a fixed-to-floating rate step-up feature where the call/step-up date has not passed are excluded from Tier 2 Capital.

(11) Represents the amount of non-grandfathered trust preferred securities eligible for inclusion in Tier 2 Capital under the U.S. Basel III rules, which will be fully phased-out of Tier 2 Capital by January 1, 2022.

(12) Advanced Approaches banking organizations are permitted to include in Tier 2 Capital eligible credit reserves that exceed expected credit losses to the extent that the excess reserves do not exceed 0.6% of credit risk-weighted assets.

(13) Total Capital as calculated under Advanced Approaches, which differs from the Standardized Approach in the treatment of the amount of eligible credit reserves includable in Tier 2 Capital.

Citigroup Capital Rollforward Under Basel III (Advanced Approaches with Full Implementation)

In millions of dollars	Three Months Ended   June 30, 2015			Six Months Ended   June 30, 2015
Common Equity Tier 1 Capital
Balance, beginning of period(1)	$	141,945		$	136,597
Net income	4,846			9,616
Dividends declared	(355		)	(514		)
Net increase in treasury stock	(1,553		)	(1,850		)
Net increase in additional paid-in capital(2)	303			405
Net increase in foreign currency translation adjustment net of hedges, net of tax	(148		)	(2,210		)
Net increase in unrealized gains on securities AFS, net of tax	(935		)	(344		)
Net decrease in defined benefit plans liability adjustment, net of tax	578			488
Net increase in cumulative unrealized net gain related to changes in fair value of    financial liabilities attributable to own creditworthiness, net of tax	(142		)	(195		)
Net decrease in goodwill, net of related deferred tax liabilities (DTLs)	136			493
Net decrease in identifiable intangible assets other than mortgage servicing rights (MSRs), net of related DTLs	31			220
Net decrease in defined benefit pension plan net assets	82			121
Net increase in deferred tax assets (DTAs) arising from net operating loss, foreign     tax credit and general business credit carry-forwards	(570		)	(134		)
Net decrease in excess over 10%/15% limitations for other DTAs, certain common stock    investments and MSRs	1,217			2,761
Other	—			(19		)
Net increase in Common Equity Tier 1 Capital	$	3,490		$	8,838
Common Equity Tier 1 Capital Balance, end of period	$	145,435		$	145,435
Additional Tier 1 Capital
Balance, beginning of period	$	12,960		$	11,469
Net increase in qualifying perpetual preferred stock(3)	1,992			3,486
Net decrease in qualifying trust preferred securities	(2		)	(3		)
Other	6			4
Net increase in Additional Tier 1 Capital	$	1,996		$	3,487
Tier 1 Capital Balance, end of period	$	160,391		$	160,391
Tier 2 Capital
Balance, beginning of period	$	16,912		$	17,388
Net increase in qualifying subordinated debt	3,241			3,001
Net increase in excess of eligible credit reserves over expected credit losses	286			62
Other	16			4
Net increase in Tier 2 Capital	$	3,543		$	3,067
Tier 2 Capital Balance, end of period	$	20,455		$	20,455
Total Capital (Tier 1 Capital + Tier 2 Capital)	$	180,846		$	180,846

(1) The beginning balance of Common Equity Tier 1 Capital for the six months ended June 30, 2015 has been restated to reflect the retrospective adoption of ASU 2014-01 for LIHTC investments, consistent with current period presentation.

(2) Primarily represents an increase in additional paid-in capital related to employee benefit plans.

45

(3) Citi issued approximately $2.0 billion and approximately $3.5 billion of qualifying perpetual preferred stock during the three months and six months ended June 30, 2015, respectively, which were partially offset by the netting of issuance costs of $8 million and $14 million during those respective periods.

Citigroup Risk-Weighted Assets Under Basel III (Full Implementation) at June 30, 2015

	Advanced Approaches						Standardized Approach
In millions of dollars	Citicorp		Citi Holdings		Total		Citicorp		Citi Holdings		Total
Credit Risk	$	744,958	$	113,230	$	858,188	$	1,021,440	$	94,459	$	1,115,899
Market Risk	87,925		7,480		95,405		88,315		7,480		95,795
Operational Risk	275,921		49,079		325,000		—		—		—
Total Risk-Weighted Assets	$	1,108,804	$	169,789	$	1,278,593	$	1,109,755	$	101,939	$	1,211,694

Citigroup Risk-Weighted Assets Under Basel III (Full Implementation) at December 31, 2014⁽¹⁾ 

	Advanced Approaches						Standardized Approach
In millions of dollars	Citicorp		Citi Holdings		Total		Citicorp		Citi Holdings		Total
Credit Risk	$	752,247	$	127,377	$	879,624	$	1,023,961	$	104,046	$	1,128,007
Market Risk	95,824		4,657		100,481		95,824		4,657		100,481
Operational Risk	255,155		57,345		312,500		—		—		—
Total Risk-Weighted Assets	$	1,103,226	$	189,379	$	1,292,605	$	1,119,785	$	108,703	$	1,228,488

(1) Restated to reflect the retrospective adoption of ASU 2014-01 for LIHTC investments, consistent with current period presentation.

Total risk-weighted assets under the Basel III Advanced Approaches declined from year-end 2014, as the decrease in credit risk-weighted assets primarily attributable to the impact of FX translation and the ongoing decline in Citi Holdings assets was partially offset by an increase in operational risk-weighted assets reflecting an evaluation of ongoing events in the banking industry as well as continued enhancements to Citi’s operational risk model.

Total risk-weighted assets under the Basel III Standardized Approach decreased during the first six months of 2015 primarily due to a decline in credit risk weighted assets resulting from changes in foreign exchange rates.

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Citigroup Risk-Weighted Assets Rollforward (Basel III Advanced Approaches with Full Implementation)

In millions of dollars	Three Months Ended  June 30, 2015			Six Months Ended  June 30, 2015
Total Risk-Weighted Assets, beginning of period(1)	$	1,283,758		$	1,292,605
Changes in Credit Risk-Weighted Assets
Net change in retail exposures(2)	7,213			(4,617		)
Net change in wholesale exposures(3)	6,135			(6,689		)
Net increase in repo-style transactions	67			498
Net increase in securitization exposures	347			2,634
Net change in equity exposures	314			(300		)
Net decrease in over-the-counter (OTC) derivatives	(3,438		)	(2,881		)
Net decrease in derivatives CVA(4)	(4,038		)	(3,549		)
Net decrease in other exposures(5)	(9,027		)	(5,519		)
Net change in supervisory 6% multiplier(6)	97			(1,013		)
Net decrease in Credit Risk-Weighted Assets	$	(2,330	)	$	(21,436	)
Changes in Market Risk-Weighted Assets
Net decrease in risk levels	$	(808	)	$	(5,712	)
Net change due to model and methodology updates	(2,027		)	636
Net decrease in Market Risk-Weighted Assets	$	(2,835	)	$	(5,076	)
Increase in Operational Risk-Weighted Assets(7)	$	—		$	12,500
Total Risk-Weighted Assets, end of period	$	1,278,593		$	1,278,593

(1) The beginning balance of Total Risk-Weighted Assets for the six months ended June 30, 2015 has been restated to reflect the retrospective adoption of ASU 2014-01 for LIHTC investments, consistent with current period presentation.

(2) Retail exposures increased during the three months ended June 30, 2015 primarily due to the reclassification from other exposures of certain non-material portfolios, partially offset by reductions in loans and commitments. Conversely, retail exposures decreased during the six months ended June 30, 2015 due to reductions in loans and commitments and the impact of FX translation, partially offset by the reclassification from other exposures of certain non-material portfolios.

(3) Wholesale exposures increased during the three months ended June 30, 2015 primarily due to an increase in commitments and the reclassification from other exposures of certain non-material portfolios. Conversely, wholesale exposures decreased during the six months ended June 30, 2015 due to reductions in commitments and the impact of FX translation, partially offset by the reclassification from other exposures of certain non-material portfolios.

(4) Derivatives CVA decreased during both the three and six months ended June 30, 2015, driven by exposure reduction and credit spread changes related to certain sovereign obligors.

(5) Other exposures include cleared transactions, unsettled transactions, assets other than those reportable in specific exposure categories and non-material portfolios. Other exposures decreased during both the three and six months ended June 30, 2015 as a result of the reclassification to retail exposures and wholesale exposures of certain non-material portfolios.

(6) Supervisory 6% multiplier does not apply to derivatives CVA.

(7) Operational risk-weighted assets increased by $12.5 billion during the first quarter of 2015, reflecting an evaluation of ongoing events in the banking industry as well as continued enhancements to Citi’s operational risk model.

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Supplementary Leverage Ratio

Citigroup’s Supplementary Leverage ratio under the U.S. Basel III rules was 6.7% for the second quarter of 2015, compared to 6.4% for the first quarter of 2015 and an estimated 5.9% for the fourth quarter of 2014. The growth in the ratio quarter-over-quarter was principally driven by an increase in Tier 1 Capital attributable largely to net income of $4.8 billion, an approximately $2.0 billion noncumulative perpetual preferred stock issuance and the beneficial effects associated with approximately $0.3 billion of DTA utilization, partially offset by a $1.7 billion return of capital to common shareholders in the form of share repurchases and dividends. The growth in the ratio

from the fourth quarter of 2014 was also principally driven by an increase in Tier 1 Capital attributable largely to year-to-date net income, a decrease in Total Leverage Exposure, and approximately $3.5 billion of perpetual preferred stock issuances, offset in part by the return of capital to common shareholders.

The following table sets forth Citi’s Supplementary Leverage ratio and related components, assuming full implementation under the U.S. Basel III rules, for the three months ended June 30, 2015 and December 31, 2014.

Citigroup Basel III Supplementary Leverage Ratios and Related Components (Full Implementation)⁽¹⁾ 

In millions of dollars, except ratios	June 30, 2015			December 31, 2014(2)
Tier 1 Capital	$	160,391		$	148,066
Total Leverage Exposure (TLE)
On-balance sheet assets(3)	$	1,839,683		$	1,899,955
Certain off-balance sheet exposures:(4)
Potential future exposure (PFE) on derivative contracts	214,777			240,712
Effective notional of sold credit derivatives, net(5)	90,273			96,869
Counterparty credit risk for repo-style transactions(6)	26,439			28,073
Unconditionally cancellable commitments	60,853			61,673
Other off-balance sheet exposures	215,013			229,672
Total of certain off-balance sheet exposures	$	607,355		$	656,999
Less: Tier 1 Capital deductions	60,849			64,318
Total Leverage Exposure	$	2,386,189		$	2,492,636
Supplementary Leverage ratio	6.72		%	5.94		%

(1) Citi’s Supplementary Leverage ratio, on a fully implemented basis, is a non-GAAP financial measure.

(2) Restated to reflect the retrospective adoption of ASU 2014-01 for LIHTC investments, consistent with current period presentation.

(3) Represents the daily average of on-balance sheet assets for the quarter.

(4) Represents the average of certain off-balance sheet exposures calculated as of the last day of each month in the quarter.

(5) Under the U.S. Basel III rules, banking organizations are required to include in TLE the effective notional amount of sold credit derivatives, with netting of exposures permitted if certain conditions are met.

(6) Repo-style transactions include repurchase or reverse repurchase transactions and securities borrowing or securities lending transactions.

Citibank, N.A.’s Supplementary Leverage ratio, assuming full implementation under the U.S. Basel III rules, was 6.7% for the second quarter of 2015, compared to 6.6% for the first quarter of 2015 and an estimated 6.2% for the fourth quarter of 2014. The growth in the ratio from the first quarter of 2015 and the fourth quarter of 2014 was principally driven by Tier 1 Capital benefits resulting from quarterly net income and DTA utilization, as well as an overall reduction in Total Leverage Exposure, partially offset by cash dividends paid by Citibank, N.A. to its parent, Citicorp, and which were subsequently remitted to Citigroup.

48

Regulatory Capital Standards Developments

GSIB Surcharge

In July 2015, the Federal Reserve Board released a final rule which imposes a risk-based capital surcharge upon U.S. bank holding companies that are identified as GSIBs, including Citi. The final rule modifies the proposed rule issued in December 2014, in part, by adjusting the methodology used to calculate the GSIB surcharge in certain respects.

Under the Federal Reserve Board’s final rule, consistent with the Basel Committee’s methodology, identification of a GSIB would be based primarily on quantitative measurement indicators underlying five equally weighted broad categories of systemic importance: (i) size, (ii) interconnectedness, (iii) cross-jurisdictional activity, (iv) substitutability, and (v) complexity. With the exception of size, each of the other categories are comprised of multiple indicators also of equal weight, and amounting to 12 indicators in total.

A U.S. banking organization that is designated a GSIB under the established methodology will be required to calculate a surcharge using two methods and will be subject to the higher of the resulting two surcharges. The first method (“method 1”), which was unchanged from the December 2014 proposed rule, is based on the same five broad categories of systemic importance used to identify a GSIB. Under the second method (“method 2”), the substitutability indicator is replaced with a measure intended to assess the extent of a GSIB’s reliance on short-term wholesale funding. The final rule, however, reduces the weight assigned to certain unsecured short-term wholesale funding sources as compared to the proposed rule. Further, under the final rule, method 2 was revised to incorporate fixed measures of systemic importance and application of an average foreign exchange rate over a three-year period, whereas the method 2 calculation under the proposed rule was determined using relative measures of systemic importance across certain global banking organizations and a single-day foreign exchange rate. The changes to the method 2 calculation in the final rule generally enhance the predictability and management of a GSIB’s surcharge as compared to the proposed rule.

GSIB surcharges under the final rule, which are required to be comprised entirely of Common Equity Tier 1 Capital, initially range from 1.0% to 4.5% of total risk-weighted assets. Moreover, the GSIB surcharge is an extension of the Capital Conservation Buffer and, if invoked, any Countercyclical Capital Buffer, and would result in restrictions on earnings distributions (e.g., dividends, equity repurchases, and discretionary executive bonuses) should the surcharge be drawn upon to absorb losses during periods of financial or economic stress, with the degree of such restrictions based upon the extent to which the surcharge is drawn.

Under the final rule, like that of the Basel Committee’s rule, the GSIB surcharge will be introduced in parallel with the Capital Conservation Buffer and, if applicable, any Countercyclical Capital Buffer, commencing phase-in on January 1, 2016 and becoming fully effective on January 1, 2019.

Citi currently estimates its GSIB surcharge under the Federal Reserve Board’s final rule as being 3.5%.

49

Tangible Common Equity, Tangible Book Value Per Share and Book Value Per Share

Tangible common equity (TCE), as currently defined by Citi, represents common equity less goodwill and other intangible assets (other than MSRs). Other companies may calculate TCE in a different manner. TCE and tangible book value per share are non-GAAP financial measures.

In millions of dollars or shares, except per share amounts	June 30, 2015		December 31, 2014(1)
Total Citigroup stockholders’ equity	$	219,440	$	210,185
Less: Preferred stock	13,968		10,468
Common equity	$	205,472	$	199,717
Less:
Goodwill	23,012		23,592
Intangible assets (other than MSRs)	4,071		4,566
Goodwill and intangible assets (other than MSRs) related to assets held-for-sale	274		71
Tangible common equity (TCE)	$	178,115	$	171,488
Common shares outstanding (CSO)	3,009.8		3,023.9
Tangible book value per share (TCE/CSO)	$	59.18	$	56.71
Book value per share (common equity/CSO)	$	68.27	$	66.05

(1) Restated to reflect the retrospective adoption of ASU 2014-01 for LIHTC investments, consistent with current period presentation.

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Managing Global Risk Table of Contents

	Page
MANAGING GLOBAL RISK	52
CREDIT RISK (1)	53
Loans Outstanding	53
Details of Credit Loss Experience	54
Allowance for Loan Losses	56
Non-Accrual Loans and Assets and Renegotiated Loans	57
North America Consumer Mortgage Lending	61
Consumer Loan Details	66
Corporate Credit Details	68
MARKET RISK(1)	71
Funding and Liquidity Risk	71
High-Quality Liquid Assets	71
Deposits	72
Long-Term Debt	72
Secured Financing Transactions and Short-Term Borrowings	74
Liquidity Coverage Ratio (LCR)	75
Credit Ratings	76
Price Risk	78
Price Risk—Non-Trading Portfolios (including Interest Rate Exposure)	78
Price Risk—Trading Portfolios (including VAR)	89
COUNTRY AND CROSS-BORDER RISK	91
Country Risk	91
Cross-Border Risk	93

(1) For additional information regarding certain credit risk, market risk and other quantitative and qualitative information, refer to Citi’s Pillar 3 Basel III Advanced Approaches Disclosures, as required by the rules of the Federal Reserve Board, on Citi’s Investor Relations website.

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MANAGING GLOBAL RISK

Citigroup believes that effective risk management is of primary importance to its overall operations. Accordingly, Citi’s risk management process has been designed to monitor, evaluate and manage the principal risks it assumes in conducting its activities. These risks are generally categorized as credit risk, market risk, operational risk and country and cross-border risk. Compliance risk can be found in all of these risk types.

Citigroup’s risk management framework is designed to balance business ownership and accountability for risks with well defined independent risk management oversight and responsibility. Further, Citi’s risk management organization is structured to facilitate the management of risk across three dimensions: businesses, regions and critical products.

For more information on Citi’s risk management programs and risk management organization, see “Managing Global Risk” and “Risk Factors” in Citi’s 2014 Annual Report on Form 10-K.

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CREDIT RISK

For additional information on Credit Risk, including Citi’s credit risk management, measurement and stress testing, see “Managing Global Risk—Credit Risk” in Citi’s 2014 Annual Report on Form 10-K.

Loans Outstanding

	2nd Qtr.			1st Qtr.			4th Qtr.			3rd Qtr.			2nd Qtr.
In millions of dollars	2015			2015			2014			2014			2014
Consumer loans
In U.S. offices
Mortgage and real estate(1)	$	90,715		$	92,005		$	96,533		$	101,583		$	103,905
Installment, revolving credit, and other	4,956			4,861			14,450			13,350			13,192
Cards	107,096			105,378			112,982			108,314			109,138
Commercial and industrial	6,493			6,532			5,895			6,870			6,972
Lease financing	—			—			—			—			—
	$	209,260		$	208,776		$	229,860		$	230,117		$	233,207
In offices outside the U.S.
Mortgage and real estate(1)	$	50,704		$	50,970		$	54,462		$	56,099		$	57,291
Installment, revolving credit, and other	30,958			31,396			31,128			34,270			34,560
Cards	28,662			28,681			32,032			32,410			34,252
Commercial and industrial	22,953			21,992			22,561			23,393			24,916
Lease financing	493			546			609			678			735
	$	133,770		$	133,585		$	140,792		$	146,850		$	151,754
Total Consumer loans	$	343,030		$	342,361		$	370,652		$	376,967		$	384,961
Unearned income	(681		)	(655		)	(682		)	(649		)	(616		)
Consumer loans, net of unearned income	$	342,349		$	341,706		$	369,970		$	376,318		$	384,345
Corporate loans
In U.S. offices
Commercial and industrial	$	40,697		$	37,537		$	35,055		$	36,516		$	36,293
Loans to financial institutions	37,360			36,054			36,272			31,916			29,195
Mortgage and real estate(1)	34,680			33,145			32,537			32,285			31,417
Installment, revolving credit, and other	31,882			29,267			29,207			30,378			32,646
Lease financing	1,707			1,755			1,758			1,737			1,668
	$	146,326		$	137,758		$	134,829		$	132,832		$	131,219
In offices outside the U.S.
Commercial and industrial	$	83,184		$	81,426		$	79,239		$	80,304		$	82,945
Loans to financial institutions	29,675			32,210			33,269			35,854			40,541
Mortgage and real estate(1)	5,948			6,311			6,031			6,243			6,309
Installment, revolving credit, and other	20,214			19,687			19,259			20,151			20,095
Lease financing	309			322			356			396			430
Governments and official institutions	4,714			2,174			2,236			2,264			2,176
	$	144,044		$	142,130		$	140,390		$	145,212		$	152,496
Total Corporate loans	$	290,370		$	279,888		$	275,219		$	278,044		$	283,715
Unearned income	(601		)	(540		)	(554		)	(536		)	(556		)
Corporate loans, net of unearned income	$	289,769		$	279,348		$	274,665		$	277,508		$	283,159
Total loans—net of unearned income	$	632,118		$	621,054		$	644,635		$	653,826		$	667,504
Allowance for loan losses—on drawn exposures	(14,075		)	(14,598		)	(15,994		)	(16,915		)	(17,890		)
Total loans—net of unearned income and allowance for credit losses	$	618,043		$	606,456		$	628,641		$	636,911		$	649,614
Allowance for loan losses as a percentage of total loans—net of unearned income(2)	2.25		%	2.38		%	2.50		%	2.60		%	2.70		%
Allowance for Consumer loan losses as a percentage of total Consumer loans—net of unearned income(2)	3.43		%	3.55		%	3.68		%	3.87		%	4.04		%
Allowance for Corporate loan losses as a percentage of total Corporate loans—net of unearned income(2)	0.82		%	0.91		%	0.89		%	0.86		%	0.85		%

(1) Loans secured primarily by real estate.

(2) All periods exclude loans that are carried at fair value.

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Details of Credit Loss Experience

	2nd Qtr.			1st Qtr.			4th Qtr.			3rd Qtr.			2nd Qtr.
In millions of dollars	2015			2015			2014			2014			2014
Allowance for loan losses at beginning of period	$	14,598		$	15,994		$	16,915		$	17,890		$	18,923
Provision for loan losses
Consumer	$	1,569		$	1,661		$	1,660		$	1,605		$	1,669
Corporate	(54		)	94			221			(30		)	(90		)
	$	1,515		$	1,755		$	1,881		$	1,575		$	1,579
Gross credit losses
Consumer
In U.S. offices	$	1,393		$	1,596		$	1,588		$	1,595		$	1,756
In offices outside the U.S.	819			839			976			948			1,009
Corporate
In U.S. offices	41			10			45			9			14
In offices outside the U.S.	82			13			118			34			33
	$	2,335		$	2,458		$	2,727		$	2,586		$	2,812
Credit recoveries(1)
Consumer
In U.S. offices	$	228		$	296		$	242		$	232		$	356
In offices outside the U.S.	170			173			223			196			231
Corporate
In U.S offices	4			12			7			18			22
In offices outside the U.S.	13			20			7			43			14
	$	415		$	501		$	479		$	489		$	623
Net credit losses
In U.S. offices	$	1,202		$	1,298		$	1,384		$	1,354		$	1,392
In offices outside the U.S.	718			659			864			743			797
Total	$	1,920		$	1,957		$	2,248		$	2,097		$	2,189
Other - net(2)(3)(4)(5)(6)(7)	$	(118	)	$	(1,194	)	$	(554	)	(453		)	$	(423	)
Allowance for loan losses at end of period	$	14,075		$	14,598		$	15,994		$	16,915		$	17,890
Allowance for loan losses as a % of total loans(8)	2.25		%	2.38		%	2.50		%	2.60		%	2.70		%
Allowance for unfunded lending commitments(9)	$	973		$	1,023		$	1,063		$	1,140		$	1,176
Total allowance for loan losses and unfunded lending commitments	$	15,048		$	15,621		$	17,057		$	18,055		$	19,066
Net Consumer credit losses	$	1,814		$	1,966		$	2,098		$	2,115		$	2,178
As a percentage of average Consumer loans	2.13		%	2.22		%	2.23		%	2.21		%	2.27		%
Net Corporate credit losses (recoveries)	$	106		$	(9	)	$	150		$	(18	)	$	11
As a percentage of average Corporate loans	0.15		%	(0.01		)%	0.21		%	(0.03		)%	0.02		%
Allowance for loan losses at end of period(10)
Citicorp	$	10,672		$	10,976		$	11,142		$	11,582		$	12,139
Citi Holdings	3,403			3,622			4,852			5,333			5,751
Total Citigroup	$	14,075		$	14,598		$	15,994		$	16,915		$	17,890
Allowance by type
Consumer	$	11,749		$	12,122		$	13,605		$	14,575		$	15,520
Corporate	2,326			2,476			2,389			2,340			2,370
Total Citigroup	$	14,075		$	14,598		$	15,994		$	16,915		$	17,890

(1) Recoveries have been reduced by certain collection costs that are incurred only if collection efforts are successful.

(2) Includes all adjustments to the allowance for credit losses, such as changes in the allowance from acquisitions, dispositions, securitizations, foreign currency translation, purchase accounting adjustments, etc.

(3) The second quarter of 2015 includes a reduction of approximately $88 million related to the sale or transfers to held-for-sale (HFS) of various loan portfolios, including a reduction of $34 million related to a transfer of a real estate loan portfolio to HFS. Additionally, the second quarter of 2015 includes a reduction of approximately $39 million related to FX translation.

54

(4) The first quarter of 2015 includes a reduction of approximately $1.0 billion related to the sale or transfers to HFS of various loan portfolios, including a reduction of $281 million related to a transfer of a real estate loan portfolio to HFS. Additionally, the first quarter of 2015 includes a reduction of approximately $145 million related to FX translation.

(5) The fourth quarter of 2014 includes a reduction of approximately $250 million related to the sale or transfers to HFS of various loan portfolios, including a reduction of $194 million related to a transfer of a real estate loan portfolio to HFS. Additionally, the fourth quarter of 2014 includes a reduction of approximately $282 million related to FX translation.

(6) The third quarter of 2014 includes a reduction of approximately $259 million related to the sale or transfers to HFS of various loan portfolios, including a reduction of $151 million related to a transfer of a real estate loan portfolio to HFS and a reduction of approximately $108 million related to the transfer of various EMEA loan portfolios to HFS. Additionally, the third quarter of 2014 includes a reduction of approximately $181 million related to FX translation.

(7) The second quarter of 2014 includes a reduction of approximately $480 million related to the sale or transfers to HFS of various loan portfolios, including a reduction of approximately $204 million, $177 million and $29 million related to the transfers to HFS of businesses in Greece, Spain and Honduras, and $66 million related to a transfer of a real estate loan portfolio to HFS. These amounts are partially offset by FX translation on the entire allowance balance.

(8) June 30, 2015, March 31, 2015, December 31, 2014, September 30, 2014 and June 30, 2014 exclude $6.5 billion, $6.6 billion, $5.9 billion, $4.4 billion and $4.8 billion, respectively, of loans which are carried at fair value.

(9) Represents additional credit loss reserves for unfunded lending commitments and letters of credit recorded in Other liabilities on the Consolidated Balance Sheet.

(10) Allowance for loan losses represents management’s best estimate of probable losses inherent in the portfolio, as well as probable losses related to large individually evaluated impaired loans and troubled debt restructurings. See “Significant Accounting Policies and Significant Estimates” and Note 1 to the Consolidated Financial Statements in Citi’s 2014 Annual Report on Form 10-K. Attribution of the allowance is made for analytical purposes only and the entire allowance is available to absorb probable credit losses inherent in the overall portfolio.

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Allowance for Loan Losses

The following tables detail information on Citi’s allowance for loan losses, loans and coverage ratios as of June 30, 2015 and December 31, 2014:

	June 30, 2015
In billions of dollars	Allowance for loan losses		Loans, net of unearned income		Allowance as a percentage of loans(1)
North America cards(2)	$	4.7	$	107.7	4.4	%
North America mortgages(3)(4)	3.0		90.1		3.4
North America other	0.5		12.9		3.9
International cards	1.6		26.8		6.0
International other(5)	2.0		104.8		1.9
Total Consumer	$	11.8	$	342.3	3.4	%
Total Corporate	2.3		289.8		0.8
Total Citigroup	$	14.1	$	632.1	2.2	%

(1) Allowance as a percentage of loans excludes loans that are carried at fair value.

(2) Includes both Citi-branded cards and Citi retail services. The $4.7 billion of loan loss reserves represented approximately 15 months of coincident net credit loss coverage.

(3) Of the $3.0 billion, approximately $2.9 billion was allocated to North America mortgages in Citi Holdings. The $3.0 billion of loan loss reserves represented approximately 52 months of coincident net credit loss coverage (for both total North America mortgages and Citi Holdings North America mortgages).

(4) Of the $3.0 billion in loan loss reserves, approximately $1.0 billion and $2.0 billion are determined in accordance with ASC 450-20 and ASC 310-10-35 (troubled debt restructurings), respectively. Of the $90.1 billion in loans, approximately $78.1 billion and $11.7 billion of the loans are evaluated in accordance with ASC 450-20 and ASC 310-10-35 (troubled debt restructurings), respectively. For additional information, see Note 15 to the Consolidated Financial Statements.

(5) Includes mortgages and other retail loans.

	December 31, 2014
In billions of dollars	Allowance for loan losses		Loans, net of unearned income		Allowance as a percentage of loans(1)
North America cards(2)	$	4.9	$	114.0	4.3	%
North America mortgages(3)(4)	3.7		95.9		3.9
North America other	1.2		21.6		5.6
International cards	1.9		31.5		6.0
International other(5)	1.9		106.9		1.8
Total Consumer	$	13.6	$	369.9	3.7	%
Total Corporate	2.4		274.7		0.9
Total Citigroup	$	16.0	$	644.6	2.5	%

(1) Allowance as a percentage of loans excludes loans that are carried at fair value.

(2) Includes both Citi-branded cards and Citi retail services. The $4.9 billion of loan loss reserves represented approximately 15 months of coincident net credit loss coverage.

(3) Of the $3.7 billion, approximately $3.5 billion was allocated to North America mortgages in Citi Holdings. The $3.7 billion of loan loss reserves represented approximately 53 months of coincident net credit loss coverage (for both total North America mortgages and Citi Holdings North America mortgages).

(4) Of the $3.7 billion in loan loss reserves, approximately $1.2 billion and $2.5 billion are determined in accordance with ASC 450-20 and ASC 310-10-35 (troubled debt restructurings), respectively. Of the $95.9 billion in loans, approximately $80.4 billion and $15.2 billion of the loans are evaluated in accordance with ASC 450-20 and ASC 310-10-35 (troubled debt restructurings), respectively. For additional information, see Note 15 to the Consolidated Financial Statements.

(5) Includes mortgages and other retail loans.

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Non-Accrual Loans and Assets and Renegotiated Loans

The following pages include information on Citi’s “Non-Accrual Loans and Assets” and “Renegotiated Loans.” There is a certain amount of overlap among these categories. The following summary provides a general description of each category:

Non-Accrual Loans and Assets:

• Corporate and consumer (commercial market) non-accrual status is based on the determination that payment of interest or principal is doubtful.

• Consumer non-accrual status is generally based on aging, i.e., the borrower has fallen behind in payments.

• Mortgage loans in regulated bank entities discharged through Chapter 7 bankruptcy, other than Federal Housing Administration (FHA) insured loans, are classified as non-accrual. Non-bank mortgage loans discharged through Chapter 7 bankruptcy are classified as non-accrual at 90 days or more past due. In addition, home equity loans in regulated bank entities are classified as non-accrual if the related residential first mortgage loan is 90 days or more past due.

• North America Citi-branded cards and Citi retail services are not included because under industry standards, credit card loans accrue interest until such loans are charged off, which typically occurs at 180 days contractual delinquency.

Renegotiated Loans:

• Includes both corporate and consumer loans whose terms have been modified in a troubled debt restructuring (TDR).

• Includes both accrual and non-accrual TDRs.

Non-Accrual Loans and Assets

The table below summarizes Citigroup’s non-accrual loans as of the periods indicated. Non-accrual loans may still be current on interest payments. In situations where Citi reasonably expects that only a portion of the principal owed will ultimately be collected, all payments received are reflected as a reduction of principal and not as interest income. For all other non-accrual loans, cash interest receipts are generally recorded as revenue.

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Non-Accrual Loans

	Jun. 30,		Mar. 31,		Dec. 31,		Sept. 30,		Jun. 30,
In millions of dollars	2015		2015		2014		2014		2014
Citicorp	$	2,760	$	2,789	$	3,011	$	3,358	$	3,226
Citi Holdings	3,677		3,965		4,096		4,264		4,707
Total non-accrual loans	$	6,437	$	6,754	$	7,107	$	7,622	$	7,933
Corporate non-accrual loans(1)
North America	$	467	$	347	$	321	$	365	$	367
EMEA	322		287		267		322		363
Latin America	224		376		416		481		288
Asia	145		151		179		182		200
Total Corporate non-accrual loans	$	1,158	$	1,161	$	1,183	$	1,350	$	1,218
Citicorp	$	1,103	$	1,108	$	1,126	$	1,290	$	1,150
Citi Holdings	55		53		57		60		67
Total Corporate non-accrual loans	$	1,158	$	1,161	$	1,183	$	1,350	$	1,217
Consumer non-accrual loans(1)
North America	$	3,934	$	4,192	$	4,412	$	4,546	$	4,915
Latin America	1,034		1,086		1,188		1,364		1,386
Asia (2)	311		315		324		362		415
Total Consumer non-accrual loans	$	5,279	$	5,593	$	5,924	$	6,272	$	6,716
Citicorp	$	1,657	$	1,681	$	1,885	$	2,068	$	2,076
Citi Holdings	3,622		3,912		4,039		4,204		4,640
Total Consumer non-accrual loans	$	5,279	$	5,593	$	5,924	$	6,272	$	6,716

(1) Excludes purchased distressed loans, as they are generally accreting interest. The carrying value of these loans was $343 million at June 30, 2015, $398 million at March 31, 2015, $421 million at December 31, 2014, $493 million at September 30, 2014, and $575 million at June 30, 2014.

(2) For reporting purposes, includes the results of operations of EMEA GCB for all periods presented.

The changes in Citigroup’s non-accrual loans for the three months ended June 30, 2015 were as follows:

	Three months ended
	June 30, 2015
In millions of dollars	Corporate			Consumer			Total
Non-accrual loans at beginning of period	$	1,161		$	5,593		$	6,754
Additions	292			1,077			1,369
Sales and transfers to held-for-sale	(141		)	(141		)	(282		)
Returned to performing	(10		)	(281		)	(291		)
Paydowns/settlements	(103		)	(309		)	(412		)
Charge-offs	(40		)	(615		)	(655		)
Other	(1		)	(45		)	(46		)
Ending balance	$	1,158		$	5,279		$	6,437

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The table below summarizes Citigroup’s other real estate owned (OREO) assets as of the periods indicated. This represents the carrying value of all real estate property acquired by foreclosure or other legal proceedings when Citi has taken possession of the collateral.

	Jun. 30,			Mar. 31,			Dec. 31,			Sept. 30,			Jun. 30,
In millions of dollars	2015			2015			2014			2014			2014
OREO(1)
Citicorp	$	87		$	103		$	92		$	86		$	95
Citi Holdings	159			172			168			296			306
Total OREO	$	246		$	275		$	260		$	382		$	401
North America	$	190		$	221		$	195		$	303		$	293
EMEA	1			1			8			18			44
Latin America	50			48			47			49			49
Asia	5			5			10			12			15
Total OREO	$	246		$	275		$	260		$	382		$	401
Non-accrual assets—Total Citigroup
Corporate non-accrual loans	$	1,158		$	1,161		$	1,183		$	1,350		$	1,218
Consumer non-accrual loans	5,279			5,593			5,924			6,272			6,716
Non-accrual loans (NAL)	$	6,437		$	6,754		$	7,107		$	7,622		$	7,934
OREO	$	246		$	275		$	260		$	382		$	401
Non-accrual assets (NAA)	$	6,683		$	7,029		$	7,367		$	8,004		$	8,335
NAL as a percentage of total loans	1.02		%	1.09		%	1.10		%	1.17		%	1.19		%
NAA as a percentage of total assets	0.37			0.38			0.40			0.43			0.44
Allowance for loan losses as a percentage of NAL(2)	219			216			225			222			225

	Jun. 30,			Mar. 31,			Dec. 31,			Sept. 30,			Jun. 30,
Non-accrual assets—Total Citicorp	2015			2015			2014			2014			2014
Non-accrual loans (NAL)	$	2,760		$	2,789		$	3,011		$	3,358		$	3,226
OREO	87			103			92			86			95
Non-accrual assets (NAA)	$	2,847		$	2,892		$	3,103		$	3,444		$	3,321
NAA as a percentage of total assets	0.17		%	0.17		%	0.18		%	0.20		%	0.19		%
Allowance for loan losses as a percentage of NAL(2)	387			394			370			345			376
Non-accrual assets—Total Citi Holdings
Non-accrual loans (NAL)	$	3,677		$	3,965		$	4,096		$	4,264		$	4,707
OREO	159			172			168			296			306
Non-accrual assets (NAA)	$	3,836		$	4,137		$	4,264		$	4,560		$	5,013
NAA as a percentage of total assets	3.31		%	3.39		%	3.31		%	3.33		%	3.39		%
Allowance for loan losses as a percentage of NAL(2)	93			91			118			125			122

(1) Reflects a decrease of $130 million related to the adoption of ASU 2014-14 in the fourth quarter of 2014, which requires certain government guaranteed mortgage loans to be recognized as separate other receivables upon foreclosure. Prior periods have not been restated. For additional information, see Note 1 of the Consolidated Financial Statements.

(2) The allowance for loan losses includes the allowance for Citi’s credit card portfolios and purchased distressed loans, while the non-accrual loans exclude credit card balances (with the exception of certain international portfolios) and purchased distressed loans as these continue to accrue interest until charge-off.

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Renegotiated Loans

The following table presents Citi’s loans modified in TDRs.

In millions of dollars	Jun. 30, 2015		Dec. 31, 2014
Corporate renegotiated loans(1)
In U.S. offices
Commercial and industrial(2)	$	37	$	12
Mortgage and real estate(3)	112		106
Loans to financial institutions	1		—
Other	290		316
	$	440	$	434
In offices outside the U.S.
Commercial and industrial(2)	$	81	$	105
Mortgage and real estate(3)	1		1
Other	36		39
	$	118	$	145
Total Corporate renegotiated loans	$	558	$	579
Consumer renegotiated loans(4)(5)(6)(7)
In U.S. offices
Mortgage and real estate (8)	$	11,919	$	15,514
Cards	1,520		1,751
Installment and other	83		580
	$	13,522	$	17,845
In offices outside the U.S.
Mortgage and real estate	$	664	$	695
Cards	598		656
Installment and other	563		586
	$	1,825	$	1,937
Total Consumer renegotiated loans	$	15,347	$	19,782

(1) Includes $201 million and $135 million of non-accrual loans included in the non-accrual assets table above at June 30, 2015 and December 31, 2014, respectively. The remaining loans are accruing interest.

(2) In addition to modifications reflected as TDRs at June 30, 2015, Citi also modified $125 million and $18 million of commercial loans risk rated “Substandard Non-Performing” or worse (asset category defined by banking regulators) in offices inside and outside the U.S., respectively. These modifications were not considered TDRs because the modifications did not involve a concession (a required element of a TDR for accounting purposes).

(3) In addition to modifications reflected as TDRs at June 30, 2015, Citi also modified $22 million of commercial real estate loans risk rated “Substandard Non-Performing” or worse (asset category defined by banking regulators) in offices inside the U.S. These modifications were not considered TDRs because the modifications did not involve a concession (a required element of a TDR for accounting purposes).

(4) Includes $3,012 million and $3,132 million of non-accrual loans included in the non-accrual assets table above at June 30, 2015 and December 31, 2014, respectively. The remaining loans are accruing interest.

(5) Includes $151 million and $124 million of commercial real estate loans at June 30, 2015 and December 31, 2014, respectively.

(6) Includes $168 million and $184 million of other commercial loans at June 30, 2015 and December 31, 2014, respectively.

(7) Smaller-balance homogeneous loans were derived from Citi’s risk management systems.

(8) Reduction in the six months ended June 30, 2015 includes $3,017 million related to TDRs sold or transferred to held-for-sale.

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North America Consumer Mortgage Lending

Overview

Citi’s NorthAmerica consumer mortgage portfolio consists of both residential first mortgages and home equity loans. At June 30, 2015, Citi’s North America consumer mortgage portfolio was $90.1 billion (compared to $91.4 billion at March 31, 2015), of which the residential first mortgage portfolio was $64.0 billion (compared to $64.3 billion at March 31, 2015), and the home equity loan portfolio was $26.1 billion (compared to $27.1 billion at March 31, 2015). At June 30, 2015, $28.6 billion of first mortgages was recorded in Citi Holdings, with the remaining $35.4 billion recorded in Citicorp. At June 30, 2015, $22.7 billion of home equity loans was recorded in Citi Holdings, with the remaining $3.4 billion recorded in Citicorp. For additional information on Citi’s North America consumer mortgage portfolio, including Citi’s representations and warranties repurchase reserve, see “Managing Global Risk—Credit Risk—North America Consumer Mortgage Lending” in Citi’s 2014 Annual Report on Form 10-K.

Citi’s residential first mortgage portfolio included $3.6 billion of loans with FHA insurance or Department of Veterans Affairs (VA) guarantees at June 30, 2015, compared to $3.7 billion at March 31, 2015.

As of June 30, 2015, Citi’s NorthAmerica residential first mortgage portfolio contained approximately $3.1 billion of adjustable rate mortgages that are currently required to make a payment consisting of only accrued interest for the payment period, or an interest-only payment, compared to $3.4 billion at March 31, 2015.

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North America Consumer Mortgage Quarterly Credit Trends—Net Credit Losses and Delinquencies—Residential First Mortgages

The following charts detail the quarterly credit trends for Citigroup’s residential first mortgage portfolio in North America.

North America Residential First Mortgage - EOP Loans

In billions of dollars

North America Residential First Mortgage - Net Credit Losses

In millions of dollars

Note: CMI refers to loans originated by CitiMortgage. CFNA refers to loans originated by CitiFinancial. Totals may not sum due to rounding.

(1) 2Q’14 excludes a recovery of approximately $58 million in CitiMortgage.

(2) Increase in 4Q’14, 1Q’15 and 2Q’15 CitiFinancial residential first mortgage net credit loss rate largely driven by ongoing loss mitigation activities.

(3) Year-over-year change in the S&P/Case-Shiller U.S. National Home Price Index.

(4) Year-over-year change as of April 2015.

North America Residential First Mortgage Delinquencies-Citi Holdings

In billions of dollars

Note: Days past due excludes (i) 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 (ii) loans recorded at fair value. Totals may not sum due to rounding.

Residential first mortgage portfolio net credit losses of $104 million declined 4% from the first quarter of 2015, with total Citi Holdings net credit losses (CitiMortgage and CitiFinancial) declining 2% sequentially.

Residential first mortgages originated by CitiFinancial have a higher net credit loss rate (4.7%, compared to 0.4% for CitiMortgage as of the second quarter of 2015), as CitiFinancial borrowers tend to have higher loan-to-value ratios (LTVs) and lower FICO (Fair Isaac Corporation) scores than CitiMortgage borrowers. CitiFinancial’s residential first mortgages also have a significantly different geographic distribution, with different mortgage market conditions that tend to lag the overall improvements in home price index (HPI).

During the second quarter of 2015, continued management actions, primarily delinquent loans transferred to held-for-sale, were the primary driver of the overall improvement in delinquencies within Citi Holdings’ residential first mortgage portfolio. Citi transferred to held-for-sale approximately $0.2 billion of delinquent residential first mortgages in the second quarter of 2015 (unchanged from the first quarter of 2015). Credit performance from quarter to quarter could continue to be impacted by the amount of delinquent loan sales or transfers to held-for-sale, as well as overall trends in HPI and interest rates.

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North America Residential First Mortgages—State Delinquency Trends

The following tables set forth, for total Citigroup, the six states and/or regions with the highest concentration of Citi’s residential first mortgages as of June 30, 2015 and March 31, 2015.

In billions of dollars	June 30, 2015									March 31, 2015
State (1)	ENR (2)		ENR Distribution		90+DPD %		% LTV > 100% (3)		Refreshed FICO	ENR (2)		ENR Distribution		90+DPD %		% LTV > 100% (3)		Refreshed FICO
CA	$	19.1	33	%	0.4	%	1	%	749	$	18.7	32	%	0.4	%	1	%	748
NY/NJ/CT(4)	12.5		22		1.3		2		744	12.4		21		1.5		2		743
VA/MD	2.7		5		2.4		6		701	2.8		5		2.6		8		699
FL(4)	2.6		4		2.2		9		706	2.6		5		2.7		12		702
TX	2.4		4		2.4		—		686	2.5		4		2.6		—		683
IL(4)	2.4		4		2.0		8		721	2.4		4		2.3		11		718
Other	16.2		28		2.9		6		682	16.8		29		3.2		7		679
Total	$	58.0	100	%	1.6	%	3	%	721	$	58.2	100	%	1.8	%	4	%	718

Note: Totals may not sum due to rounding.

(1) Certain of the states are included as part of a region based on Citi’s view of similar HPI within the region.

(2) Ending net receivables. Excludes loans in Canada and Puerto Rico, loans guaranteed by U.S. government agencies, loans recorded at fair value and loans subject to LTSCs. Excludes balances for which FICO or LTV data are unavailable.

(3) LTV ratios (loan balance divided by appraised value) are calculated at origination and updated by applying market price data.

(4) New York, New Jersey, Connecticut, Florida and Illinois are judicial states.

Foreclosures

A substantial majority of Citi’s foreclosure inventory consists of residential first mortgages. At June 30, 2015, Citi’s foreclosure inventory included approximately $0.4 billion, or 0.7%, of the total residential first mortgage portfolio, compared to $0.5 billion, or 0.8%, at March 31, 2015 (based on the dollar amount of ending net receivables of loans in foreclosure inventory, excluding loans that are guaranteed by U.S. government agencies and loans subject to LTSCs). This decline in the second quarter of 2015 was largely attributable to an increase in completed foreclosures.

Citi’s foreclosure inventory continues to be impacted by the ongoing extensive state and regulatory requirements related to the foreclosure process, which continue to result in longer foreclosure timelines. Citi’s average timeframes to move a loan out of foreclosure are two to three times longer than historical norms, and continue to be even more pronounced in judicial states, where Citi has a higher concentration of residential first mortgages in foreclosure. As of June 30, 2015, approximately 21% of Citi’s total foreclosure inventory was active foreclosure units in process for over two years, compared to 20% as of March 31, 2015.

North America Consumer Mortgage Quarterly Credit Trends—Net Credit Losses and Delinquencies—Home Equity Loans

Citi’s home equity loan portfolio consists of both fixed-rate home equity loans and loans extended under home equity lines of credit. Fixed-rate home equity loans are fully amortizing. Home equity lines of credit allow for amounts to be drawn for a period of time with the payment of interest only and then, at the end of the draw period, the then-outstanding amount is converted to an amortizing loan (the interest-only payment feature during the revolving period is standard for this product across the industry). After conversion, the home equity loans typically have a 20-year amortization period.

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Revolving HELOCs

At June 30, 2015, Citi’s home equity loan portfolio of $26.1 billion included approximately $14.8 billion of home equity lines of credit (Revolving HELOCs) that are still within their revolving period and have not commenced amortization, or “reset,” compared to $16.0 billion at March 31, 2015. The following chart indicates the FICO and combined loan-to-value (CLTV) characteristics of Citi’s Revolving HELOCs portfolio and the year in which they reset:

North America Home Equity Lines of Credit Amortization – Citigroup

Total ENR by Reset Year

In billions of dollars as of June 30, 2015

Note: Totals may not sum due to rounding.

Approximately 16% of Citi’s total Revolving HELOCs portfolio had commenced amortization as of June 30, 2015 (compared to 12% as of March 31, 2015). Of the remaining Revolving HELOCs portfolio, approximately 73% will commence amortization during the remainder of 2015–2017. Before commencing amortization, Revolving HELOC borrowers are required to pay only interest on their loans. Upon amortization, these borrowers will be required to pay both interest, usually at a variable rate, and principal that amortizes typically over 20 years, rather than the typical 30-year amortization. As a result, Citi’s customers with Revolving HELOCs that reset could experience “payment shock” due to the higher required payments on the loans.

While it is not certain what, if any, impact this payment shock could have on Citi’s delinquency rates and net credit losses, Citi currently estimates that the monthly loan payment for its Revolving HELOCs that reset during the remainder of 2015–2017 could increase on average by approximately $360, or 165%. Increases in interest rates could further increase these payments given the variable nature of the interest rates on these loans post-reset. Of the Revolving HELOCs that will commence amortization during the remainder of 2015–2017, approximately $1.2 billion, or 11%, of the loans have a CLTV greater than 100% as of June 30, 2015. Borrowers’ high loan-to-value positions, as well as the cost and availability of refinancing options, could limit borrowers’ ability to refinance their Revolving HELOCs as these loans begin to reset.

Based on the limited number of Revolving HELOCs that have begun amortization as of June 30, 2015, approximately 5.9% of the amortizing home equity loans were 30+ days past due, compared to 2.6% of the total outstanding home equity loan portfolio (amortizing and non-amortizing). This

compared to 6.2% and 2.7%, respectively, as of March 31, 2015. As newly amortizing loans continue to season, the delinquency rate of the amortizing Revolving HELOC portfolio could increase. In addition, the resets have generally occurred during a period of historically low interest rates, which Citi believes has likely reduced the overall “payment shock” to the borrower.

Citi continues to monitor this reset risk closely and will continue to consider any potential impact in determining its allowance for loan loss reserves. In addition, management continues to review and take additional actions to offset potential reset risk, such as establishment of a borrower outreach program to provide reset risk education, establishment of a reset risk mitigation unit and proactively contacting high-risk borrowers. For further information on reset risk, see “Risk Factors—Credit and Market Risks” in Citi’s 2014 Annual Report on Form 10-K.

Net Credit Losses and Delinquencies

The following charts detail the quarterly credit trends for Citi’s home equity loan portfolio in North America.

North America Home Equity - EOP Loans

In billions of dollars

North America Home Equity - Net Credit Losses

In millions of dollars

Note: Totals may not sum due to rounding.

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North America Home Equity Loan Delinquencies - Citi Holdings

In billions of dollars

Note: Totals may not sum due to rounding.

As evidenced by the tables above, home equity loan net credit losses and delinquencies continued to improve during the second quarter of 2015, largely driven by the continued improvement in HPI. During the second quarter of 2015, the decline in delinquencies was primarily due to liquidations and continued modifications.

Given the currently limited market in which to sell delinquent home equity loans, as well as the relatively smaller number of home equity loan modifications and modification programs (see Note 15 to the Consolidated Financial Statements), Citi’s ability to reduce delinquencies or net credit losses in its home equity loan portfolio in Citi Holdings, whether pursuant to deterioration of the underlying credit performance of these loans, the reset of the Revolving HELOCs (as discussed above) or otherwise, is more limited as compared to residential first mortgages.

North America Home Equity Loans—State Delinquency Trends

The following tables set forth, for total Citigroup, the six states and/or regions with the highest concentration of Citi’s home equity loans as of June 30, 2015 and March 31, 2015.

In billions of dollars	June 30, 2015									March 31, 2015
State (1)	ENR (2)		ENR Distribution		90+DPD %		% CLTV > 100% (3)		Refreshed FICO	ENR (2)		ENR Distribution		90+DPD %		% CLTV > 100% (3)		Refreshed FICO
CA	$	6.8	28	%	1.5	%	8	%	729	$	7.1	28	%	1.5	%	10	%	729
NY/NJ/CT(4)	6.4		26		2.4		11		722	6.6		26		2.5		11		721
FL(4)	1.7		7		1.9		29		709	1.8		7		2.2		35		707
VA/MD	1.5		6		1.7		27		707	1.6		6		1.6		29		706
IL(4)	1.0		4		1.4		37		718	1.1		4		1.4		41		717
IN/OH/MI(4)	0.8		3		1.6		33		690	0.8		3		1.9		37		688
Other	6.4		26		1.7		18		703	6.7		26		1.7		20		702
Total	$	24.7	100	%	1.8	%	16	%	716	$	25.7	100	%	1.9	%	18	%	715

Note: Totals may not sum due to rounding.

(1) Certain of the states are included as part of a region based on Citi’s view of similar HPI within the region.

(2) Ending net receivables. Excludes loans in Canada and Puerto Rico and loans subject to LTSCs. Excludes balances for which FICO or LTV data are unavailable.

(3) Represents combined loan-to-value (CLTV) for both residential first mortgages and home equity loans. CLTV ratios (loan balance divided by appraised value) are calculated at origination and updated by applying market price data.

(4) New York, New Jersey, Connecticut, Indiana, Ohio, Florida and Illinois are judicial states.    

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CONSUMER LOAN DETAILS

Consumer Loan Delinquency Amounts and Ratios

	Total loans(1)		90+ days past due(2)									30-89 days past due(2)
In millions of dollars, except EOP loan amounts in billions	June 30, 2015		June 30, 2015			March 31, 2015			June 30, 2014			June 30, 2015			March 31, 2015			June 30, 2014
Citicorp(3)(4)
Total	$	283.9	$	2,134		$	2,245		$	2,704		$	2,387		$	2,511		$	2,815
Ratio			0.75		%	0.80		%	0.92		%	0.84		%	0.90		%	0.96		%
Retail banking
Total	$	149.8	$	636		$	617		$	989		$	797		$	845		$	965
Ratio			0.43		%	0.42		%	0.64		%	0.53		%	0.58		%	0.63		%
North America	48.8		150			123			227			176			203			203
Ratio			0.31		%	0.26		%	0.50		%	0.37		%	0.43		%	0.45		%
Latin America	25.7		296			306			540			266			282			344
Ratio			1.15		%	1.20		%	1.85		%	1.04		%	1.10		%	1.18		%
Asia(5)	75.3		190			188			222			355			360			418
Ratio			0.25		%	0.25		%	0.28		%	0.47		%	0.48		%	0.53		%
Cards
Total	$	134.1	$	1,498		$	1,628		$	1,715		$	1,590		$	1,666		$	1,850
Ratio			1.12		%	1.23		%	1.22		%	1.19		%	1.26		%	1.32		%
North America—Citi-branded	64.5		495			569			583			462			497			540
Ratio			0.77		%	0.90		%	0.87		%	0.72		%	0.78		%	0.80		%
North America—Citi retail services	43.2		567			629			606			652			673			683
Ratio			1.31		%	1.48		%	1.41		%	1.51		%	1.59		%	1.58		%
Latin America	8.3		245			240			303			229			247			326
Ratio			2.95		%	2.82		%	3.00		%	2.76		%	2.91		%	3.23		%
Asia(5)	18.1		191			190			223			247			249			301
Ratio			1.06		%	1.07		%	1.14		%	1.36		%	1.40		%	1.54		%
Citi Holdings(6)(7)
Total	$	58.4	$	1,540		$	1,698		$	2,708		$	1,272		$	1,339		$	2,504
Ratio			2.76		%	2.88		%	3.23		%	2.28		%	2.27		%	2.99		%
International	4.2		78			91			238			119			142			330
Ratio			1.86		%	1.86		%	2.27		%	2.83		%	2.90		%	3.14		%
North America	54.2		1,462			1,607			2,470			1,153			1,197			2,174
Ratio			2.84		%	2.97		%	3.37		%	2.24		%	2.21		%	2.97		%
Total Citigroup	$	342.3	$	3,674		$	3,943		$	5,412		$	3,659		$	3,850		$	5,319
Ratio			1.08		%	1.17		%	1.43		%	1.08		%	1.14		%	1.41		%

(1) Total loans include interest and fees on credit cards.

(2) The ratios of 90+ days past due and 30–89 days past due are calculated based on end-of-period (EOP) loans, net of unearned income.

(3) The 90+ days past due balances for North America—Citi-branded and North America—Citi retail services are generally still accruing interest. Citigroup’s policy is generally to accrue interest on credit card loans until 180 days past due, unless notification of bankruptcy filing has been received earlier.

(4) The 90+ days and 30–89 days past due and related ratios forCiticorp North America exclude U.S. mortgage loans that are guaranteed by U.S. government-sponsored entities since the potential loss predominantly resides within the U.S. government-sponsored entities. The amounts excluded for loans 90+ days past due and (EOP loans) were $423 million ($0.8 billion), $534 million ($1.1 billion) and $668 million ($1.2 billion) at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. The amounts excluded for loans 30–89 days past due (EOP loans have the same adjustment as above) were $75 million, $111 million and $125 million at June 30, 2015, March 31, 2015 and June 30, 2014, respectively.

(5) For reporting purposes, Asia GCB includes the results of operations of EMEA GCB for all periods presented.

(6) The 90+ days and 30–89 days past due and related ratios for Citi Holdings North America exclude U.S. mortgage loans that are guaranteed by U.S. government-sponsored entities since the potential loss predominantly resides within the U.S. government-sponsored entities. The amounts excluded for loans 90+ days past due (and EOP loans) for each period were $1.7 billion ($2.7 billion), $1.8 billion ($2.5 billion) and $2.8 billion ($5.2 billion) at June 30, 2015, March 31, 2015 and June 30, 2014, respectively. The amounts excluded for loans 30–89 days past due (EOP loans have the same adjustment as above) for each period were $0.3

 billion, $0.2 billion and $0.7 billion at June 30, 2015, March 31, 2015 and June 30, 2014, respectively.

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(7) The June 30, 2015, March 31, 2015 and June 30, 2014 loans 90+ days past due and 30–89 days past due and related ratios for North America exclude $12 million, $12 million and $17 million, respectively, of loans that are carried at fair value.

Consumer Loan Net Credit Losses and Ratios

	Average loans(1)		Net credit losses(2)(3)
In millions of dollars, except average loan amounts in billions	2Q15		2Q15			1Q15			2Q14
Citicorp
Total	$	282.2	$	1,579		$	1,551		$	1,738
Ratio			2.24		%	2.22		%	2.39		%
Retail banking
Total	$	149.8	$	315		$	294		$	331
Ratio			0.84		%	0.80		%	0.87		%
North America	49.0		40			36			37
Ratio			0.33		%	0.31		%	0.33		%
Latin America	25.7		196			188			211
Ratio			3.06		%	2.97		%	2.92		%
Asia(4)	75.1		79			70			83
Ratio			0.42		%	0.38		%	0.42		%
Cards
Total	$	132.4	$	1,264		$	1,257		$	1,407
Ratio			3.83		%	3.78		%	4.08		%
North America—Citi-branded	63.2		503			492			570
Ratio			3.19		%	3.11		%	3.44		%
North America—Retail services	42.6		457			433			465
Ratio			4.30		%	4.00		%	4.40		%
Latin America	8.5		196			229			243
Ratio			9.25		%	10.55		%	9.46		%
Asia(4)	18.1		108			103			129
Ratio			2.39		%	2.32		%	2.69		%
Citi Holdings(3)
Total	$	59.9	$	234		$	414		$	439
Ratio			1.57		%	2.20		%	1.88		%
International	4.5		41			51			83
Ratio			3.65		%	2.80		%	2.60		%
North America	55.4		193			363			356
Ratio			1.40		%	2.14		%	1.77		%
Other(5)	—		1			1			1
Total Citigroup	$	342.1	$	1,814		$	1,966		$	2,178
Ratio			2.13		%	2.22		%	2.27		%

(1) Average loans include interest and fees on credit cards.

(2) The ratios of net credit losses are calculated based on average loans, net of unearned income.

(3) As a result of the entry into an agreement in March 2015 to sell OneMain Financial (OneMain), OneMain was classified as held-for-sale (HFS) at the end of the first quarter 2015. As a result of HFS accounting treatment, approximately $160 million of net credit losses were recorded as a reduction in revenue (Other revenue) during the second quarter of 2015.

(4) For reporting purposes, Asia GCB includes the results of operations of EMEA GCB for all periods presented.

(5) Represents NCLs on loans classified as Consumer loans on the Consolidated Balance Sheet that are not included in the Citi Holdings consumer credit metrics.

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CORPORATE CREDIT DETAILS

Consistent with its overall strategy, Citi’s corporate clients are typically large, multi-national corporations which value Citi’s global network. Citi aims to establish relationships with these clients that encompass multiple products, consistent with client needs, including cash management and trade services, foreign exchange, lending, capital markets and M&A advisory.

Corporate Credit Portfolio

The following table sets forth Citi’s corporate credit portfolio (excluding private bank in ICG), before consideration of collateral or hedges, by remaining tenor at June 30, 2015, March 31, 2015 and December 31, 2014. The vast majority of Citi’s corporate credit portfolio resides in ICG; as of June 30, 2015, less than 1% of Citi’s corporate credit exposure resided in Citi Holdings.

	At June 30, 2015								At March 31, 2015								At December 31, 2014
In billions of dollars	Due within 1 year		Greater than 1 year but within 5 years		Greater than 5 years		Total Exposure		Due within 1 year		Greater than 1 year but within 5 years		Greater than 5 years		Total exposure		Due within 1 year		Greater than 1 year but within 5 years		Greater than 5 years		Total exposure
Direct outstandings (on-balance sheet) (1)	$	97	$	98	$	29	$	224	$	93	$	91	$	32	$	216	$	95	$	85	$	33	$	213
Unfunded lending commitments (off-balance sheet)(2)	93		202		36		331		86		206		27		319		92		207		33		332
Total exposure	$	190	$	300	$	65	$	555	$	179	$	297	$	59	$	535	$	187	$	292	$	66	$	545

(1) Includes drawn loans, overdrafts, bankers’ acceptances and leases.

(2) Includes unused commitments to lend, letters of credit and financial guarantees.

Portfolio Mix—Geography, Counterparty and Industry

Citi’s corporate credit portfolio is diverse across geography and counterparty. The following table shows the percentage by region based on Citi’s internal management geography:

	June 30, 2015		March 31, 2015		December 31, 2014
North America	55	%	54	%	55	%
EMEA	25		25		25
Asia	13		14		13
Latin America	7		7		7
Total	100	%	100	%	100	%

The maintenance of accurate and consistent risk ratings across the corporate credit portfolio facilitates the comparison of credit exposure across all lines of business, geographic regions and products. Counterparty risk ratings reflect an estimated probability of default for a counterparty and are derived primarily through the use of validated statistical models, scorecard models and external agency ratings (under defined circumstances), in combination with consideration of factors specific to the obligor or market, such as management experience, competitive position, regulatory environment and commodity prices. Facility risk ratings are assigned that reflect the probability of default of

the obligor and factors that affect the loss-given-default of the facility, such as support or collateral. Internal obligor ratings that generally correspond to BBB and above are

considered investment grade, while those below are considered non-investment grade.

Citigroup also has incorporated climate risk assessment and reporting criteria for certain obligors, as necessary. Factors evaluated include consideration of climate risk to an

obligor’s business and physical assets and, when relevant, consideration of cost-effective options to reduce greenhouse gas emissions.

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The following table presents the corporate credit portfolio by facility risk rating at June 30, 2015, March 31, 2015 and December 31, 2014, as a percentage of the total corporate credit portfolio:

	Total Exposure
	June 30, 2015		March 31, 2015		December 31, 2014
AAA/AA/A	51	%	50	%	49	%
BBB	33		33		33
BB/B	15		15		16
CCC or below	1		2		1
Unrated	—		—		1
Total	100	%	100	%	100	%

Note: Total exposure includes direct outstandings and unfunded lending commitments.

Citi’s corporate credit portfolio is also diversified by industry. The following table shows the allocation of Citi’s total corporate credit portfolio by industry:

	Total Exposure
	June 30, 2015		March 31, 2015		December 31, 2014
Transportation and industrial	21	%	21	%	21	%
Consumer retail and health	15		16		17
Technology, media and telecom	11		10		9
Energy (1)	10		10		10
Power, chemicals, commodities and metals and mining	10		10		10
Banks/broker-dealers	8		8		8
Hedge funds	6		5		5
Real estate	5		5		6
Public sector	5		6		5
Insurance and special purpose entities	5		5		5
Other industries	4		4		4
Total	100	%	100	%	100	%

Note: Total exposure includes direct outstandings and unfunded lending commitments.

(1) In addition to this exposure, Citi also has energy-related exposure within the “Public sector” (e.g., energy-related state-owned entities) and “Transportation and industrial” sector (e.g., off-shore drilling entities) included in the table above. As of June 30, 2015, Citi’s total exposure to these energy-related entities remained largely consistent with the prior quarter, at approximately $7 billion, of which approximately $4 billion consisted of direct outstanding funded loans.

As of June 30, 2015, Citi’s total corporate credit exposure to the energy and energy-related sector (see footnote 1 to the table above) was approximately $60 billion, with approximately $22 billion, or 3%, of Citi’s total outstanding loans consisting of direct outstanding funded loans. This compared to approximately $58 billion of total

corporate credit exposure and $22 billion of direct outstanding funded loans as of March 31, 2015. In addition, as of June 30, 2015, approximately 72% of Citi’s total corporate credit energy and energy-related exposure (based on the methodology described above) was in the United States, United Kingdom and Canada (compared to approximately 69% at March 31, 2015). Also, as of June 30, 2015, approximately 83% of Citi’s total energy and energy-related exposures were rated investment grade (compared to approximately 82% as of March 31, 2015). While market developments led to an approximate $43 million loan loss reserve build in ICG during the current quarter, Citi did not experience any material net credit losses against its corporate energy exposures in the current quarter.

Credit Risk Mitigation

As part of its overall risk management activities, Citigroup uses credit derivatives and other risk mitigants to hedge portions of the credit risk in its corporate credit portfolio, in addition to outright asset sales. The results of the mark-to-market and any realized gains or losses on credit derivatives are reflected in Principal transactions on the Consolidated Statement of Income.

At June 30, 2015, March 31, 2015 and December 31, 2014, $25.2 billion, $27.2 billion and $27.6 billion, respectively, of the corporate credit portfolio was economically hedged. Citigroup’s expected loss model used in the calculation of its loan loss reserve does not include the favorable impact of credit derivatives and other mitigants that are marked-to-market. In addition, the reported amounts of direct outstandings and unfunded lending commitments in the tables above do not reflect the impact of these hedging transactions. At June 30, 2015, March 31, 2015 and December 31, 2014, the credit protection was economically hedging underlying corporate credit portfolio exposures with the following risk rating distribution:

Rating of Hedged Exposure

	June 30, 2015		March 31, 2015		December 31, 2014
AAA/AA/A	23	%	23	%	24	%
BBB	38		38		42
BB/B	34		33		28
CCC or below	5		6		6
Total	100	%	100	%	100	%

At June 30, 2015, March 31, 2015 and December 31, 2014, the credit protection was economically hedging underlying corporate credit portfolio exposures with the following industry distribution:

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Industry of Hedged Exposure

	June 30, 2015		March 31, 2015		December 31, 2014
Transportation and industrial	30	%	30	%	30	%
Technology, media and telecom	14		14		15
Power, chemicals, commodities and metals and mining	13		15		15
Energy	13		12		10
Consumer retail and health	12		12		11
Banks/broker-dealers	6		7		7
Public Sector	6		4		6
Insurance and special purpose entities	4		4		4
Other industries	2		2		2
Total	100	%	100	%	100	%

For additional information on Citi’s corporate credit portfolio, including allowance for loan losses, coverage ratios and corporate non-accrual loans, see “Credit Risk—Loans Outstanding, Details of Credit Loss Experience, Allowance for Loan Losses and Non-Accrual Loans and Assets” above.

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MARKET RISK

Market risk encompasses funding and liquidity risk and price risk, each of which arise in the normal course of business of a global financial intermediary such as Citi. For additional information, see “Managing Global Risk—Market Risk” in Citi’s 2014 Annual Report on Form 10-K.

Funding and Liquidity Risk

For additional information on funding and liquidity risk at Citigroup, including Citi’s liquidity management, stress testing and certain of its additional liquidity measures, see “Market Risk—Funding and Liquidity Risk” and “Risk Factors” in Citi’s 2014 Annual Report on Form 10-K.

High-Quality Liquid Assets

	Parent(1)				Significant Citibank Entities(2)				Other Citibank and Banamex Entities				Total
In billions of dollars	Jun. 30, 2015		Mar. 31, 2015		Jun. 30, 2015		Mar. 31, 2015		Jun. 30, 2015		Mar. 31, 2015		Jun. 30, 2015		Mar. 31, 2015
Available cash	$	17.8	$	18.3	$	63.7	$	71.3	$	8.2	$	4.9	$	89.7	$	94.5
Unencumbered liquid securities	29.0		30.3		210.7		207.1		56.4		68.6		$	296.1	$	306.0
Total	$	46.8	$	48.6	$	274.4	$	278.4	$	64.6	$	73.5	$	385.8	$	400.5

Note: Amounts set forth in the table above are based on the U.S. Liquidity Coverage Ratio (LCR) rules. All amounts are as of period end and may increase or decrease intra-period in the ordinary course of business.

(1) “Parent” consists of Citigroup, the parent holding company and Citi’s broker-dealer subsidiaries that are consolidated into Citigroup.

(2) “Significant Citibank Entities” consist of Citibank, N.A. units domiciled in the U.S., Western Europe, Hong Kong, Japan and Singapore.

As set forth in the table above, Citi’s high-quality liquid assets (HQLA) as of June 30, 2015 were $385.8 billion, compared to $400.5 billion as of March 31, 2015. The decrease in HQLA quarter-over-quarter was largely driven by Citi’s purposeful reduction of short-term borrowings. In addition, as Citi continues to improve the liquidity value of its deposits (see “Deposits” and “Liquidity Coverage Ratio (LCR)” below), Citi is able to reduce its required levels of HQLA.

Prior to September 30, 2014, Citi reported its HQLA based on the Basel Committee’s LCR rules. On this basis, Citi’s HQLA was $434.9 billion as of June 30, 2014. Year-over-year, the decrease in Citi’s HQLA was primarily due to the impact of the U.S. LCR rules, which excluded municipal securities, covered bonds and residential mortgage-backed securities from the definition of HQLA.

The following table shows further detail of the composition of Citi's HQLA by type of asset as of June 30, 2015 and March 31, 2015. For securities, the amounts represent the liquidity value that potentially could be realized, and thus exclude any securities that are encumbered, as well as the haircuts that would be required for secured financing transactions.

In billions of dollars	Jun. 30, 2015		Mar. 31, 2015
Available cash	$	89.7	$	94.5
U.S. Treasuries	138.2		135.4
U.S. Agencies/Agency MBS	59.7		57.3
Foreign government(1)	94.1		110.3
Other investment grade	4.0		3.1
Total	$	385.8	$	400.5

Note: Amounts set forth in the table above are based on the U.S. LCR rules.

(1) Foreign government includes securities issued or guaranteed by foreign sovereigns, agencies and multilateral development banks. Foreign government securities are held largely to support local liquidity requirements and Citi’s local franchises and principally included government bonds from Brazil, Hong Kong, India, Korea, Mexico and Singapore.

Citi’s HQLA as set forth above does not include additional potential liquidity in the form of Citigroup’s borrowing capacity from the various Federal Home Loan Banks (FHLB), which was approximately $37 billion as of June 30, 2015 (compared to $38 billion as of March 31, 2015 and $27 billion as of June 30, 2014) and is maintained by pledged collateral to all such banks. The HQLA shown above also does not include Citi’s borrowing capacity at the U.S. Federal Reserve Bank discount window or international central banks, which would be in addition to the resources noted above.

In general, Citigroup can freely fund legal entities within its bank vehicles. Citigroup’s bank subsidiaries, including Citibank, N.A., can lend to the Citigroup parent and broker-

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dealer entities in accordance with Section 23A of the Federal Reserve Act. As of June 30, 2015, the amount available for lending to these entities under Section 23A was approximately $17 billion (unchanged from March 31, 2015 and June 30, 2014), subject to collateral requirements.

Deposits

Deposits are the primary and lowest cost funding source for Citi’s bank subsidiaries. The table below sets forth the end-of-period deposits, by business and/or segment, and the total average deposits for each of the periods indicated.

In billions of dollars	Jun. 30, 2015		Mar. 31, 2015		Jun. 30, 2014
Global Consumer Banking
North America	$	173.5	$	172.6	$	170.6
Latin America	42.1		42.0		46.3
Asia(1)	89.6		89.7		93.1
Total	$	305.2	$	304.3	$	310.0
ICG
Treasury and trade solutions (TTS)	$	397.5	$	386.5	$	383.5
Banking ex-TTS	108.2		104.4		93.6
Markets and securities services	82.4		80.2		94.7
Total	$	588.1	$	571.1	$	571.9
Corporate/Other	7.0		12.3		31.4
Total Citicorp	$	900.3	$	887.7	$	913.3
Total Citi Holdings(2)	7.7		11.9		52.4
Total Citigroup deposits (EOP)	$	908.0	$	899.6	$	965.7
Total Citigroup deposits (AVG)	$	906.4	$	899.5	$	959.5

(1) For reporting purposes, includes EMEA GCB for all periods presented.

(2) June 30, 2015 and March 31, 2015 deposit balances reflect the reclassification to held-for-sale of approximately $20 billion of deposits as a result of Citigroup’s entry into an agreement in December 2014 to sell its Japan retail banking business.

End-of-period deposits decreased 6% year-over-year and increased 1% quarter-over-quarter. Excluding the impact of FX translation, Citigroup’s end-of-period deposits declined 1% year-over-year. On this basis, Citicorp deposits grew 3%, offset by a decline in Citi Holdings deposits. Within Citicorp, GCB deposits increased 3% year-over-year, driven by 4% growth in international deposits. ICG deposits increased 8% year-over-year, with continued high-quality deposit growth (as discussed below), particularly in treasury and trade solutions in North America. The decline in Citi Holdings deposits was primarily driven by the reclassification to held-for-sale of deposits relating to Citi’s Japan retail banking business (see note 2 to the table above), as well as the continued transfer of MSSB deposits to Morgan Stanley, which was completed as of June 30, 2015. Average deposits declined 1% year-over-year, as the growth in Citicorp was more than offset by the reduction in Citi Holdings deposits. Average deposits grew 1% quarter-over-quarter, primarily due to 4% growth in ICG, partially offset by the ongoing reduction in Citi Holdings deposits.

Citi monitors its deposit base across multiple dimensions, including what Citi refers to as “LCR value” or the liquidity value of the deposit base under the U.S. LCR rules. Under U.S. LCR rules, deposits are assigned liquidity values based on expected behavior under stress, determined by the type of deposit and the type of client. Generally, the U.S. LCR rules prioritize operating accounts of consumers (including retail and commercial banking deposits) and corporations, while assigning lower liquidity values to non-operating balances of financial institutions. As of June 30, 2015, Citi’s total deposits had a liquidity value of approximately 74% under the U.S. LCR rules, a slight increase from 73% as of March 31, 2015, with a liquidity value of approximately 87% for Citi’s GCB deposits and 68% for ICG deposits, including Corporate/Other.

Long-Term Debt

Long-term debt (generally defined as debt with original maturities of one year or more) represents the most significant component of Citi’s funding for the parent entities and is a supplementary source of funding for the bank entities.

Long-term debt is an important funding source due in part to its multi-year maturity structure. The weighted-average maturities of unsecured long-term debt issued by Citigroup and its affiliates (including Citibank, N.A.) with a remaining life greater than one year (excluding remaining trust preferred securities outstanding) was approximately 6.7 years as of June 30, 2015, a slight decline from the prior quarter and year, due in part to the repurchase of certain longer-dated debt securities during the second quarter of 2015.

Citi’s long-term debt outstanding at the parent includes benchmark debt and what Citi refers to as customer-related debt, consisting of structured notes, such as equity- and credit-linked notes, as well as non-structured notes. Citi’s issuance of customer-related debt is generally driven by customer demand and supplements benchmark debt issuance as a source of funding for Citi’s parent entities. Citi’s long-term debt at the bank also includes FHLB advances and securitizations.

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Long-Term Debt Outstanding

The following table sets forth Citi’s total long-term debt outstanding for the periods indicated:

In billions of dollars	Jun. 30, 2015		Mar. 31, 2015		Jun. 30, 2014
Parent(1)	$	155.1	$	151.8	$	163.0
Benchmark debt:
Senior debt	97.3		95.5		97.8
Subordinated debt	25.6		25.5		28.1
Trust preferred	1.7		1.7		1.8
Customer-Related debt:
Structured debt	23.7		21.9		22.5
Non-structured debt	4.5		5.0		8.0
Local Country and Other(1)(3)	2.3		2.2		4.8
Bank	$	56.7	$	58.7	$	64.0
FHLB Borrowings	16.8		16.3		19.1
Securitizations(3)	32.0		35.2		38.1
Local Country and Other(2)	7.9		7.2		6.8
Total long-term debt(1)	$	211.8	$	210.5	$	227.0

Note: Amounts represent the current value of long-term debt on Citi’s Consolidated Balance Sheet which, for certain debt instruments, includes consideration of fair value, hedging impacts and unamortized discounts and premiums.

(1) June 30, 2015 and March 31, 2015 long-term debt balances exclude approximately $5.9 billion and $4.7 billion, respectively, of long-term debt (consisting largely of personal loan securitizations) relating to OneMain Financial, classified as held-for-sale, as a result of Citigroup’s entry into an agreement in March 2015 to sell its OneMain Financial business.

(2) Local country debt includes debt issued by Citi’s affiliates in support of their local operations.

(3) Predominantly credit card securitizations, primarily backed by Citi-branded credit cards.

Citi’s total long-term debt outstanding decreased year-over-year and increased slightly quarter-over-quarter. Year-over-year, Citi’s total long-term debt outstanding decreased primarily due to a reduction in securitizations at the bank entities, as well as the reclassification to held-for-sale of long-term debt relating to OneMain Financial (see note 1 to the table above). Sequentially, Citi’s total long-term debt increased slightly due to issuance of senior debt at the parent level, partially offset by continued reductions in credit card securitizations at the bank entities.

As part of its liability management, Citi has considered, and may continue to consider, opportunities to repurchase its long-term debt pursuant to open market purchases, tender offers or other means. Such repurchases help reduce Citi’s overall funding costs. During the second quarter of 2015, Citi repurchased an aggregate of approximately $2.8 billion of its outstanding long-term debt.

Going forward, changes in Citi’s long-term debt outstanding will continue to reflect the funding needs of its businesses as well as the market and economic environment and any regulatory changes or requirements. For additional information on regulatory changes and requirements impacting Citi’s overall funding and liquidity, see “Market Risk - Funding and Liquidity Risk - Total Loss-Absorbing Capacity,” “Liquidity Management, Stress Testing and Measurement” and “Risk Factors” in Citi’s 2014 Annual Report on Form 10-K.

Long-Term Debt Issuances and Maturities

The table below details Citi’s long-term debt issuances and maturities (including repurchases and redemptions) during the periods presented:

	2Q15				1Q15				2Q14
In billions of dollars	Maturities		Issuances		Maturities		Issuances		Maturities		Issuances
Parent(1)	$	7.0	$	12.5	$	8.6	$	11.1	$	11.1	$	10.0
Benchmark debt:
Senior debt	3.2		5.4		5.1		6.1		4.7		5.6
Subordinated debt	2.0		3.0		0.4		1.0		1.0		1.0
Trust preferred	—		—		—		—		2.1		—
Customer-related debt:
Structured debt	1.4		3.9		2.5		2.8		2.2		2.2
Non-structured debt	0.3		0.1		0.4		—		0.3		0.4
Local Country and Other(1)	0.1		0.1		0.2		1.2		0.8		0.8
Bank	$	3.6	$	1.7	$	6.9	$	0.6	$	4.2	$	8.7
FHLB borrowings	—		0.5		3.5		—		1.0		6.1
Securitizations	3.2		—		2.8		—		1.4		2.4
Local Country and Other	0.4		1.2		0.5		0.6		1.8		0.2
Total(1)	$	10.6	$	14.2	$	15.5	$	11.7	$	15.3	$	18.7

(1) As a result of OneMain Financial’s reclassification to held-for-sale in March 2015, 2Q15 excludes issuances of $1.2 billion relating to OneMain Financial and classified to held-for-sale, while 1Q15 includes issuances of $1.2 billion subsequently reclassified to held-for-sale.

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The table below shows Citi’s aggregate long-term debt maturities (including repurchases and redemptions) year-to-date in 2015, as well as its aggregate expected annual long-term debt maturities as of June 30, 2015:

	Maturities 1H15
In billions of dollars			2015		2016		2017		2018		2019		2020		Thereafter		Total
Parent(1)	$	15.6	$	8.0	$	19.4	$	25.8	$	19.3	$	18.8	$	5.8	$	58.0	$	155.1
Benchmark debt:
Senior debt	8.3		5.3		11.9		19.4		15.4		14.6		4.0		26.7		97.3
Subordinated debt	2.4		0.1		1.5		2.9		1.2		1.3		—		18.6		25.6
Trust preferred	—		—		—		—		—		—		—		1.7		1.7
Customer-related debt:
Structured debt	3.9		1.7		5.1		3.0		2.3		1.7		1.7		8.2		23.7
Non-structured debt	0.7		0.9		0.9		0.5		0.4		0.2		0.1		1.5		4.5
Local Country and Other(1)	0.3		—		—		—		—		1.0		—		1.3		2.3
Bank	$	10.5	$	3.5	$	23.2	$	14.8	$	9.0	$	2.2	$	0.3	$	3.7	56.7
FHLB borrowings	3.5		0.5		9.6		6.3		0.4		—		—		—		16.8
Securitizations	6.0		1.8		10.2		6.4		8.3		1.9		—		3.4		32.0
Local Country and Other	0.9		1.2		3.4		2.1		0.3		0.3		0.3		0.3		7.9
Total long-term debt(1)	$	26.1	$	11.5	$	42.6	$	40.6	$	28.3	$	21.0	$	6.1	$	61.7	$	211.8

(1) Maturities exclude OneMain Financial long-term debt of approximately $5.9 billion (consisting largely of personal loan securitizations) reclassified to held-for-sale as a result of Citigroup’s entry into an agreement in March 2015 to sell its OneMain Financial business.

Secured Funding Transactions and Short-Term Borrowings

Secured Funding

Secured funding is primarily conducted through Citi’s broker-dealer subsidiaries to fund efficiently both secured lending activity and a portion of trading inventory. Citi also conducts a smaller portion of its secured funding transactions through its bank entities, which is typically collateralized by foreign government securities. Generally, daily changes in the level of Citi’s secured funding are primarily due to fluctuations in secured lending activity in the matched book (as described below) and trading inventory.

Secured funding of $177 billion as of June 30, 2015 declined 4% from the prior-year period, primarily driven by the impact of FX translation, and was largely unchanged sequentially. Excluding the impact of FX translation, secured funding increased 6% from the prior-year period driven by normal business activity. Average balances for secured funding were approximately $183 billion for the quarter ended June 30, 2015, compared to $177 billion for the quarter ended March 31, 2015 and $193 billion for the quarter ended June 30, 2014. 

The portion of secured funding in the broker-dealer subsidiaries that funds secured lending is commonly referred to as “matched book” activity.  The majority of this activity is secured by high quality, liquid securities such as U.S. Treasury securities, U.S. agency securities and foreign sovereign debt.  Other secured funding is secured by less liquid securities, including equity securities, corporate bonds and asset-backed securities.  The tenor of Citi’s matched book liabilities is equal to or longer than the tenor of the corresponding matched book assets.

The remainder of the secured funding activity in the broker-dealer subsidiaries serves to fund trading inventory.  To

maintain reliable funding under a wide range of market conditions, including under periods of stress, Citi manages these activities by taking into consideration the quality of the underlying collateral, and stipulating financing tenor. The weighted average maturity of Citi’s secured funding of less liquid trading inventory was greater than 110 days as of June 30, 2015.

Citi manages the risks in its secured funding by conducting daily stress tests to account for changes in capacity, tenors, haircut, collateral profile and client actions. Additionally, Citi maintains counterparty diversification by establishing concentration triggers and assessing counterparty reliability and stability under stress. Citi generally sources secured funding from more than 150 counterparties.

Commercial Paper

The following table sets forth Citi’s commercial paper outstanding for each of its parent and significant Citibank entities, respectively, for each of the periods indicated. Similar to other short-term borrowings described below, as Citi continued to grow its high-quality deposits, it reduced its reliance on short-term borrowings, including commercial paper.

In billions of dollars	Jun. 30, 2015		Mar. 31, 2015		Jun. 30, 2014
Commercial paper
Parent	$	—	$	0.1	$	0.2
Significant Citibank entities	10.0		10.9		14.7
Total	$	10.0	$	11.0	$	14.9

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Other Short-Term Borrowings

At June 30, 2015, Citi’s other short-term borrowings, which included borrowings from the FHLB and other market participants, were approximately $16 billion, compared to $28 billion at March 31, 2015, and $45 billion at June 30, 2014. As described under “Commercial Paper” above, Citi purposefully reduced its other short-term borrowings, including FHLB borrowings, as it continued to grow its high-quality deposits.

Liquidity Coverage Ratio (LCR)

In addition to internal short-term liquidity measures that Citi has developed, Citi also monitors its short-term liquidity by reference to the LCR, as calculated pursuant to the U.S. LCR rules. For additional information on the LCR, see “Market Risk - Funding and Liquidity Risk - Short-Term Liquidity Measurement; Liquidity Coverage Ratio” in Citi’s 2014 Annual Report on Form 10-K.

The table below sets forth the components of Citi’s LCR calculation and HQLA in excess of net outflows as of June 30, 2015 and March 31, 2015.

in billions of dollars	Jun. 30, 2015			Mar. 31, 2015
HQLA	$	385.8		$	400.5
Net outflows	$	347.3		$	361.0
LCR	111		%	111		%
HQLA in excess of net outflows	$	38.6		$	39.5

Note: Amounts set forth in the table above are based on the U.S. LCR rules.

As set forth in the table above, Citi’s LCR remained unchanged quarter-over-quarter as the reduction in Citi’s HQLA was offset by reduced deposit and debt maturity outflows reflecting the improvement in the LCR liquidity value of Citi’s deposits as well as the continued reduction in short-term borrowings (each as described above).

As noted above, prior to September 30, 2014, Citi reported its LCR based on the Basel Committee’s LCR rules. On this basis, Citi’s LCR was 123% as of June 30, 2014. The decrease in Citi’s LCR year-over-year was primarily due to the impact of the U.S. LCR rules. Specifically, as discussed under “High-Quality Liquid Assets” above, the U.S. LCR rules excluded certain assets from the calculation of HQLA. In addition, net outflows are higher under the U.S. LCR rules, primarily due to the “peak day” outflow requirement (i.e., net outflows are required to be based on the highest individual day’s mismatch between contractual and certain non-defined maturity inflows and outflows within the 30-day LCR period) as well as higher deposit outflow assumptions resulting from the more stringent deposit classifications (e.g., the nature of the deposit balance or counterparty designation) under the U.S. LCR rules.

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Credit Ratings

Citigroup’s funding and liquidity, its funding capacity, ability to access capital markets and other sources of funds, the cost of these funds, and its ability to maintain certain deposits are partially dependent on its credit ratings. The table below sets forth the ratings for Citigroup and Citibank, N.A. as of June 30, 2015. While not included in the table below, the long-term and short-term ratings of Citigroup Global Markets Inc. (CGMI) were A/A-1 at Standard & Poor’s and A+/F1 at Fitch as of June 30, 2015.

Debt Ratings as of June 30, 2015

	Citigroup Inc.			Citibank, N.A.
	Senior debt	Commercial paper	Outlook	Long- term	Short- term	Outlook
Fitch Ratings (Fitch)	A	F1	Stable	A+	F1	Stable
Moody’s Investors Service (Moody’s)	Baa1	P-2	Stable	A1	P-1	Stable
Standard & Poor’s (S&P)(1)	A-	A-2	Negative	A	A-1	Stable

(1) See “Recent Credit Rating Developments” below.

Recent Credit Rating Developments

On May 19, 2015, Fitch revised its methodology relating to U.S. GSIBs by revising its U.S. Support Rating Floor (SRF), which sets the lower bound on the long-term ratings of U.S. GSIBs, to ‘No Floor’ from ‘A’. This had no direct impact on Citigroup, as it did not benefit from the SRF. Additionally, Fitch introduced a rating differential between the long-term ratings of a bank's holding and operating companies, reflecting the expected implementation of total loss-absorbing capital (TLAC) requirements for U.S. GSIBs and the likelihood of a substantial debt buffer in the holding company. As a result of these methodology changes, Fitch upgraded the long-term ratings and deposit ratings of Citi's material U.S. operating companies by one notch. Specifically, the long-term ratings of Citibank, N.A. and CGMI (as noted above) were upgraded to ‘A+’ from ‘A’ and the deposit ratings for Citibank, N.A were upgraded to ‘AA-’ from ‘A+’.

On May 28, 2015, Moody’s concluded its reviews on 13 global investment banks. As a result of its reviews, Moody’s affirmed Citigroup’s Baseline Credit Assessment (BCA), or unsupported rating, of ‘baa2’ and upgraded Citibank, N.A.’s long-term senior unsecured debt and long-term deposit ratings 1-notch to ‘A1’ from ‘A2’. Moody’s also upgraded Citigroup’s senior unsecured debt rating by 1-notch, to ‘Baa1’ from ‘Baa2’ and its preferred stock rating to ‘Ba2’ from ‘Ba3’.

As a result of the completion of its annual review of the U.S. banking industry, including the U.S. GSIBs, on July 23, 2015 S&P upgraded Citigroup’s stand-alone credit profile (SACP), or unsupported rating, by 1-notch to ‘a-’ from ‘bbb+’, which also resulted in a 1-notch upgrade to Citigroup's hybrid capital instruments to ‘BB+’ from ‘BB’. S&P affirmed the ‘A/A-1’ issuer credit ratings on Citigroup’s core and highly strategic operating subsidiaries, including Citibank, N.A. and Citigroup Global Markets Inc., with government support reduced from 2-notches to 1-notch, in line with its methodology for a U.S. highly systemically important institution with an ‘a-’ SACP. These rating actions were driven by S&P’s view that the risk to the U.S. banking industry has

reduced due to wide-ranging regulatory changes, and that Citigroup's management has effectively strengthened, de-risked, and simplified Citi’s business model. Additionally, S&P revised the outlook on the ratings of Citi's operating subsidiaries, including Citibank, N.A. and Citigroup Global Markets Inc., to positive from stable as the long-term rating could be upgraded if the 1-notch of government support is removed and Citigroup’s “Additional Loss Absorbing Capital” (ALAC) is sufficient to contribute 2-notches of uplift. The rating outlook on Citigroup and other U.S. GSIBs remains negative, reflecting S&P’s ongoing evaluation of government support.

Potential Impacts of Ratings Downgrades

Ratings downgrades by Moody’s, Fitch or S&P could negatively impact Citigroup’s and/or Citibank, N.A.’s funding and liquidity due to reduced funding capacity, including derivatives triggers, which could take the form of cash obligations and collateral requirements.

The following information is provided for the purpose of analyzing the potential funding and liquidity impact to Citigroup and Citibank, N.A. of a hypothetical, simultaneous

ratings downgrade across all three major rating agencies. This analysis is subject to certain estimates, estimation methodologies, and judgments and uncertainties. Uncertainties include potential ratings limitations that certain entities may have with respect to permissible counterparties, as well as general subjective counterparty behavior. For example, certain corporate customers and trading counterparties could re-evaluate their business relationships with Citi and limit the trading of certain contracts or market instruments with Citi. Changes in counterparty behavior could impact Citi’s funding and liquidity, as well as the results of operations of certain of its businesses. The actual impact to Citigroup or Citibank, N.A. is unpredictable and may differ materially from the potential funding and liquidity impacts described below.

For additional information on the impact of credit rating changes on Citi and its applicable subsidiaries, see “Risk

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Factors—Liquidity Risks” in Citigroup’s 2014 Annual Report on Form 10-K.

Citigroup Inc. and Citibank, N.A.—Potential Derivative Triggers

As of June 30, 2015, Citi estimates that a hypothetical one-notch downgrade of the senior debt/long-term rating of Citigroup Inc. across all three major rating agencies could impact Citigroup’s funding and liquidity due to derivative triggers by approximately $0.8 billion, compared to $0.9 billion as of March 31, 2015. Other funding sources, such as secured financing transactions and other margin requirements, for which there are no explicit triggers, could also be adversely affected.

As of June 30, 2015, Citi estimates that a hypothetical one-notch downgrade of the senior debt/long-term rating of Citibank, N.A. across all three major rating agencies could impact Citibank, N.A.’s funding and liquidity by approximately $1.3 billion, compared to $1.5 billion as of March 31, 2015, due to derivative triggers.

In total, Citi estimates that a one-notch downgrade of Citigroup and Citibank, N.A., across all three major rating agencies, could result in aggregate cash obligations and collateral requirements of approximately $2.1 billion, compared to $2.4 billion as of March 31, 2015 (see also Note 21 to the Consolidated Financial Statements). As set forth under “High-Quality Liquid Assets” above, the liquidity resources of Citi’s parent entities were approximately $47 billion, and the liquidity resources of Citi’s significant Citibank entities and other Citibank and Banamex entities were approximately $339 billion, for a total of approximately $386 billion as of June 30, 2015. These liquidity resources are available in part as a contingency for the potential events described above.

In addition, a broad range of mitigating actions are currently included in Citigroup’s and Citibank, N.A.’s contingency funding plans. For Citigroup, these mitigating factors include, but are not limited to, accessing surplus funding capacity from existing clients, tailoring levels of secured lending, and adjusting the size of select trading books and collateralized borrowings from Citi’s significant bank subsidiaries. Mitigating actions available to Citibank, N.A. include, but are not limited to, selling or financing highly liquid government securities, tailoring levels of secured lending, adjusting the size of select trading books, reducing loan originations and renewals, raising additional deposits, or borrowing from the FHLB or central banks. Citi believes these mitigating actions could substantially reduce the funding and liquidity risk, if any, of the potential downgrades described above.

Citibank, N.A.—Additional Potential Impacts

In addition to the above derivative triggers, Citi believes that a potential one-notch downgrade of Citibank, N.A.’s senior debt/long-term rating by S&P and Fitch could also have an adverse impact on the commercial paper/short-term rating of Citibank, N.A. As of June 30, 2015, Citibank, N.A. had liquidity commitments of approximately $10.0 billion to consolidated asset-backed commercial paper conduits, compared to $10.9 billion as of March 31, 2015 (as referenced in Note 20 to the Consolidated Financial Statements).

In addition to the above-referenced liquidity resources of Citi’s significant Citibank entities and other Citibank and Banamex entities, Citibank, N.A. could reduce the funding and liquidity risk, if any, of the potential downgrades described above through mitigating actions, including repricing or reducing certain commitments to commercial paper conduits. In the event of the potential downgrades described above, Citi believes that certain corporate customers could re-evaluate their deposit relationships with Citibank, N.A. This re-evaluation could result in clients adjusting their discretionary deposit levels or changing their depository institution, which could potentially reduce certain deposit levels at Citibank, N.A. However, Citi could choose to adjust pricing, offer alternative deposit products to its existing customers or seek to attract deposits from new customers, in addition to the mitigating actions referenced above.

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Price Risk

Price risk losses arise from fluctuations in the market value of non-trading and trading positions resulting from changes in interest rates, credit spreads, foreign exchange rates, equity and commodity prices, and in their implied volatilities. For additional information on Citi’s price risk measurement and stress testing, see “Managing Global Risk—Market Risk—Price Risk” in Citi’s 2014 Annual Report on Form 10-K.

Price Risk—Non-Trading Portfolios

For additional information on Citi’s net interest revenue (for interest rate exposure purposes), interest rate risk and interest rate risk measurement, see “Managing Global Risk—Market Risk—Price Risk—Non-Trading Portfolios” in Citi’s 2014 Annual Report on Form 10-K.

The following table sets forth the estimated impact to Citi’s net interest revenue, Accumulated Other Comprehensive Income (AOCI) and the Common Equity Tier 1 Capital ratio (on a fully implemented basis), each assuming an unanticipated parallel instantaneous 100 basis point increase in interest rates.

In millions of dollars (unless otherwise noted)	Jun. 30, 2015			Mar. 31, 2015			Jun. 30, 2014
Estimated annualized impact to net interest revenue
U.S. dollar(1)	$	1,360		$	1,263		$	1,255
All other currencies	645			611			681
Total	$	2,005		$	1,874		$	1,936
As a % of average interest-earning assets	0.12		%	0.12		%	0.11		%
Estimated initial impact to AOCI (after-tax)(2)	$	(4,213	)	$	(3,931	)	$	(3,395	)
Estimated initial impact on Common Equity Tier 1 Capital ratio (bps)(3)	(47		)	(45		)	(38		)

(1) Certain trading-oriented businesses within Citi have accrual-accounted positions that are excluded from the estimated impact to net interest revenue in the table since these exposures are managed economically in combination with mark-to-market positions. The U.S. dollar interest rate exposure associated with these businesses was $(236) million for a 100 basis point instantaneous increase in interest rates as of June 30, 2015.

(2) Includes the effect of changes in interest rates on AOCI related to investment securities, cash flow hedges and pension liability adjustments.

(3) The estimated initial impact to the Common Equity Tier 1 Capital ratio considers the effect of Citi’s deferred tax asset position and is based on only the estimated initial AOCI impact above.

The sequential increase in the estimated impact to net interest revenue primarily reflected changes in balance sheet composition, including the increase in certain of Citi’s deposit balances, partly offset by Citi Treasury actions. The sequential increase in the estimated impact to AOCI and the Common Equity Tier 1 Capital ratio primarily reflected changes in the composition of Citi Treasury’s investment and interest rate derivatives portfolio.

In the event of an unanticipated parallel instantaneous 100 basis point increase in interest rates, Citi expects the negative impact to AOCI would be offset in shareholders’ equity through the combination of expected incremental net interest revenue and the expected recovery of the impact on AOCI

through accretion of Citi’s investment portfolio over a period of time. As of June 30, 2015, Citi expects that the negative $4.2 billion impact to AOCI in such a scenario could potentially be offset over approximately 21 months.

The following table sets forth the estimated impact to Citi’s net interest revenue, AOCI and the Common Equity Tier 1 Capital ratio (on a fully implemented basis) under four different changes in interest rate scenarios for the U.S. dollar and Citi’s other currencies. While Citi also monitors the impact of a parallel decrease in interest rates, a 100 basis point decrease in short-term interest rates is not meaningful, as it would imply negative interest rates in many of Citi’s markets.

In millions of dollars (unless otherwise noted)	Scenario 1			Scenario 2			Scenario 3			Scenario 4
Overnight rate change (bps)	100			100			—			—
10-year rate change (bps)	100			—			100			(100		)
Estimated annualized impact to net interest revenue
U.S. dollar	$	1,360		$	1,323		$	90		$	(148	)
All other currencies	645			601			37			(37		)
Total	$	2,005		$	1,924		$	127		$	(185	)
Estimated initial impact to AOCI (after-tax)(1)	$	(4,213	)	$	(2,677	)	$	(1,708	)	$	1,464
Estimated initial impact to Common Equity Tier 1 Capital ratio (bps)(2)	(47		)	(30		)	(19		)	16

Note: Each scenario in the table above assumes that the rate change will occur instantaneously. Changes in interest rates for maturities between the overnight rate and the 10-year are interpolated.

(1) Includes the effect of changes in interest rates on AOCI related to investment securities, cash flow hedges and pension liability adjustments.

(2) The estimated initial impact to the Common Equity Tier 1 Capital ratio considers the effect of Citi’s deferred tax asset position and is based on only the estimated AOCI impact above.

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As shown in the table above, the magnitude of the impact to Citi’s net interest revenue and AOCI is greater under scenario 2 as compared to scenario 3. This is because the combination of changes to Citi’s investment portfolio, partially offset by changes related to Citi’s pension liabilities, results in a net position that is more sensitive to rates at shorter and intermediate term maturities.

Changes in Foreign Exchange Rates—Impacts on AOCI and Capital

As of June 30, 2015, Citi estimates that a simultaneous 5% appreciation of the U.S. dollar against all of Citi’s other currencies could reduce Citi’s tangible common equity (TCE) by approximately $1.6 billion, or 0.9% of TCE, as a result of changes to Citi’s foreign currency translation adjustment in AOCI, net of hedges. This impact would be primarily due to changes in the value of the Mexican peso, the British pound sterling, the euro, the Chinese yuan and the Australian dollar.

Despite this decrease in TCE, Citi believes its business model and management of foreign currency translation exposure work to minimize the effect of changes in foreign exchange rates on its Common Equity Tier 1 Capital ratio. Specifically, as currency movements change the value of Citi’s net investments in foreign-currency-denominated capital, these movements also change the value of Citi’s risk-weighted assets denominated in those currencies. This, coupled with Citi’s foreign currency hedging strategies, such as foreign currency borrowings, foreign currency forwards and other currency hedging instruments, lessens the impact of foreign currency movements on Citi’s Common Equity Tier 1 Capital ratio.

The effect of Citi’s business model and management strategies on changes in foreign exchange rates are shown in the table below. For additional information in the changes in AOCI, see Note 18 to the Consolidated Financial Statements.

	For the quarter ended
In millions of dollars (unless otherwise noted)	Jun. 30, 2015			Mar. 31, 2015			Jun. 30, 2014
Change in FX spot rate(1)	0.2		%	(4.5		)%	1.2		%
Change in TCE due to foreign currency translation, net of hedges	$	(44	)	$	(1,763	)	$	(170	)
As a % of Tangible Common Equity	—		%	(1.0		)%	(0.1		)%
Estimated impact to Common Equity Tier 1 Capital ratio (on a fully implemented basis) due to changes in foreign currency translation, net of hedges (bps)	(3		)	—			(3		)

(1) FX spot rate change is a weighted average based upon Citi’s quarterly average GAAP capital exposure to foreign countries.

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Interest Revenue/Expense and Yields

	2nd Qtr.				1st Qtr.				2nd Qtr.				Change
In millions of dollars, except as otherwise noted	2015				2015				2014				2Q15 vs. 2Q14
Interest revenue(1)	$	14,995			$	14,724			$	15,682			(4	)%
Interest expense	3,051				3,028				3,615				(16	)
Net interest revenue(1)(2)	$	11,944			$	11,696			$	12,067			(1	)%
Interest revenue—average rate	3.71		%		3.67		%		3.73		%		(2	)	bps
Interest expense—average rate	0.97				0.96				1.07				(10	)	bps
Net interest margin	2.95		%		2.92		%		2.87		%		8		bps
Interest-rate benchmarks
Two-year U.S. Treasury note—average rate	0.61		%		0.60		%		0.42		%		19		bps
10-year U.S. Treasury note—average rate	2.16				1.97				2.62				(46	)	bps
10-year vs. two-year spread	155			bps	137			bps	220			bps

(1) Net interest revenue includes the taxable equivalent adjustments (based on the U.S. federal statutory tax rate of 35%) of $121 million, $124 million and $121 million for the three months ended June 30, 2015, March 31, 2015 and June 30, 2014, respectively.

(2) Excludes expenses associated with certain hybrid financial instruments, which are classified as Long-term debt and accounted for at fair value with changes recorded in Principal transactions.

Citi’s net interest margin (NIM) is calculated by dividing gross interest revenue less gross interest expense by average interest earning assets. Citi’s NIM increased sequentially to 295 basis points, driven by a higher-than-expected contribution from trading NIM, which can fluctuate quarter-to-quarter. Excluding this impact, Citi’s NIM would have been closer to 291 basis points in the second quarter of 2015. Citi’s NIM will be impacted during the remainder of 2015 by divestitures from Citi Holdings, including OneMain Financial and the Japan retail banking business, although the ultimate impact to NIM will be dependent on the timing and overall impact of these divestitures to Citi’s results of operations.

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Average Balances and Interest Rates—Assets^(1)(2)(3)(4) 

Taxable Equivalent Basis

	Average volume						Interest revenue						% Average rate
	2nd Qtr.		1st Qtr.		2nd Qtr.		2nd Qtr.		1st Qtr.		2nd Qtr.		2nd Qtr.		1st Qtr.		2nd Qtr.
In millions of dollars, except rates	2015		2015		2014		2015		2015		2014		2015		2015		2014
Assets
Deposits with banks(5)	$	134,641	$	139,173	$	160,555	$	168	$	183	$	250	0.50	%	0.53	%	0.62	%
Federal funds sold and securities borrowed or purchased under agreements to resell(6)
In U.S. offices	$	149,577	$	151,077	$	159,178	$	307	$	283	$	257	0.82	%	0.76	%	0.65	%
In offices outside the U.S.(5)	86,458		90,102		106,245		357		359		335		1.66	%	1.62	%	1.26	%
Total	$	236,035	$	241,179	$	265,423	$	664	$	642	$	592	1.13	%	1.08	%	0.89	%
Trading account assets(7)(8)
In U.S. offices	$	118,896	$	116,950	$	111,204	$	985	$	918	$	804	3.32	%	3.18	%	2.90	%
In offices outside the U.S.(5)	110,691		111,309		123,015		671		516		683		2.43	%	1.88	%	2.23	%
Total	$	229,587	$	228,259	$	234,219	$	1,656	$	1,434	$	1,487	2.89	%	2.55	%	2.55	%
Investments
In U.S. offices
Taxable	$	214,168	$	213,431	$	188,005	$	973	$	940	$	783	1.82	%	1.79	%	1.67	%
Exempt from U.S. income tax	19,818		20,740		20,689		99		83		173		2.00	%	1.62	%	3.35	%
In offices outside the U.S.(5)	99,045		102,168		114,575		760		769		933		3.08	%	3.05	%	3.27	%
Total	$	333,031	$	336,339	$	323,269	$	1,832	$	1,792	$	1,889	2.21	%	2.16	%	2.34	%
Loans (net of unearned income)(9)
In U.S. offices	$	347,779	$	357,951	$	361,875	$	6,292	$	6,368	$	6,475	7.26	%	7.21	%	7.18	%
In offices outside the U.S.(5)	279,247		276,914		303,196		3,721		4,195		4,892		5.34	%	6.14	%	6.47	%
Total	$	627,026	$	634,865	$	665,071	$	10,013	$	10,563	$	11,367	6.41	%	6.75	%	6.86	%
Other interest-earning assets(10)	$	62,656	$	45,501	$	39,088	$	662	$	110	$	97	4.24	%	0.98	%	1.00	%
Total interest-earning assets	$	1,622,976	$	1,625,316	$	1,687,625	$	14,995	$	14,724	$	15,682	3.71	%	3.67	%	3.73	%
Non-interest-earning assets(7)	$	216,708	$	227,808	$	215,443
Total assets	$	1,839,684	$	1,853,124	$	1,903,068

(1) Net interest revenue includes the taxable equivalent adjustments (based on the U.S. federal statutory tax rate of 35%) of $121 million, $124 million and $121 million for the three months ended June 30, 2015, March 31, 2015 and June 30, 2014, respectively.

(2) Interest rates and amounts include the effects of risk management activities associated with the respective asset and liability categories.

(3) Monthly or quarterly averages have been used by certain subsidiaries where daily averages are unavailable.

(4) Detailed average volume, Interest revenue and Interest expense exclude Discontinued operations. See Note 2 to the Consolidated Financial Statements.

(5) Average rates reflect prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.

(6) Average volumes of securities borrowed or purchased under agreements to resell are reported net pursuant to FIN 41 (ASC 210-20-45). However, Interest revenue excludes the impact of FIN 41 (ASC 210-20-45).

(7) The fair value carrying amounts of derivative contracts are reported net, pursuant to FIN 39 (ASC 815-10-45), in Non-interest-earning assets and Other non-interest-bearing liabilities.

(8) Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively.

(9) Includes cash-basis loans.

(10) Includes brokerage receivables.

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Average Balances and Interest Rates—Liabilities and Equity, and Net Interest Revenue^(1)(2)(3)(4) 

Taxable Equivalent Basis

	Average volume						Interest expense						% Average rate
	2nd Qtr.		1st Qtr.		2nd Qtr.		2nd Qtr.		1st Qtr.		2nd Qtr.		2nd Qtr.		1st Qtr.		2nd Qtr.
In millions of dollars, except rates	2015		2015		2014		2015		2015		2014		2015		2015		2014
Liabilities
Deposits
In U.S. offices(5)	$	269,673	$	281,518	$	293,480	$	330	$	356	$	356	0.49	%	0.51	%	0.49	%
In offices outside the U.S.(6)	431,305		416,878		472,654		958		970		1,113		0.89	%	0.94	%	0.94	%
Total	$	700,978	$	698,396	$	766,134	$	1,288	$	1,326	$	1,469	0.74	%	0.77	%	0.77	%
Federal funds purchased and securities loaned or sold under agreements to repurchase(7)
In U.S. offices	$	112,690	$	106,394	$	99,617	$	183	$	163	$	198	0.65	%	0.62	%	0.80	%
In offices outside the U.S.(6)	70,602		70,720		93,685		260		213		339		1.48	%	1.22	%	1.45	%
Total	$	183,292	$	177,114	$	193,302	$	443	$	376	$	537	0.97	%	0.86	%	1.11	%
Trading account liabilities(8)(9)
In U.S. offices	$	26,008	$	28,040	$	31,403	$	27	$	23	$	23	0.42	%	0.33	%	0.29	%
In offices outside the U.S.(6)	46,972		45,159		50,927		27		24		25		0.23	%	0.22	%	0.20	%
Total	$	72,980	$	73,199	$	82,330	$	54	$	47	$	48	0.30	%	0.26	%	0.23	%
Short-term borrowings(10)
In U.S. offices	$	65,695	$	72,060	$	76,824	$	73	$	21	$	52	0.45	%	0.12	%	0.27	%
In offices outside the U.S.(6)	48,584		57,078		38,336		84		98		110		0.69	%	0.70	%	1.15	%
Total	$	114,279	$	129,138	$	115,160	$	157	$	119	$	162	0.55	%	0.37	%	0.56	%
Long-term debt(11)
In U.S. offices	$	180,517	$	191,555	$	195,397	$	1,057	$	1,110	$	1,323	2.35	%	2.35	%	2.72	%
In offices outside the U.S.(6)	7,393		7,007		8,671		52		50		76		2.82	%	2.89	%	3.52	%
Total	$	187,910	$	198,562	$	204,068	$	1,109	$	1,160	$	1,399	2.37	%	2.37	%	2.75	%
Total interest-bearing liabilities	$	1,259,439	$	1,276,409	$	1,360,994	$	3,051	$	3,028	$	3,615	0.97	%	0.96	%	1.07	%
Demand deposits in U.S. offices	$	24,670	$	24,018	$	27,796
Other non-interest-bearing liabilities(8)	336,701		339,129		301,148
Total liabilities	$	1,620,810	$	1,639,556	$	1,689,938
Citigroup stockholders’ equity(12)	$	217,522	$	212,133	$	211,400
Noncontrolling interest	1,352		1,435		1,730
Total equity(12)	$	218,874	$	213,568	$	213,130
Total liabilities and stockholders’ equity	$	1,839,684	$	1,853,124	$	1,903,068
Net interest revenue as a percentage of average interest-earning assets(13)
In U.S. offices	$	884,959	$	942,923	$	950,037	$	7,087	$	7,004	$	6,640	3.21	%	3.01	%	2.80	%
In offices outside the U.S.(6)	738,017		682,393		737,588		4,857		4,692		5,427		2.64		2.79		2.95
Total	$	1,622,976	$	1,625,316	$	1,687,625	$	11,944	$	11,696	$	12,067	2.95	%	2.92	%	2.87	%

(1) Net interest revenue includes the taxable equivalent adjustments (based on the U.S. federal statutory tax rate of 35%) of $121 million, $124 million and $121 million for the three months ended June 30, 2015, March 31, 2015 and June 30, 2014, respectively.

(2) Interest rates and amounts include the effects of risk management activities associated with the respective asset and liability categories.

(3) Monthly or quarterly averages have been used by certain subsidiaries where daily averages are unavailable.

(4) Detailed average volume, Interest revenue and Interest expense exclude Discontinued operations. See Note 2 to the Consolidated Financial Statements.

(5) Consists of other time deposits and savings deposits. Savings deposits are made up of insured money market accounts, NOW accounts, and other savings deposits. The interest expense on savings deposits includes FDIC deposit insurance fees and charges.

(6) Average rates reflect prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.

(7) Average volumes of securities sold under agreements to repurchase are reported net pursuant to FIN 41 (ASC 210-20-45). However, Interest expense excludes the impact of FIN 41 (ASC 210-20-45).

(8) The fair value carrying amounts of derivative contracts are reported net, pursuant to FIN 39 (ASC 815-10-45), in Non-interest-earning assets and Other non-interest-bearing liabilities.

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(9) Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively.

(10) Includes brokerage payables.

(11) Excludes hybrid financial instruments and beneficial interests in consolidated VIEs that are classified as Long-term debt, as these obligations are accounted for in changes in fair value recorded in Principal transactions.

(12) Includes stockholders’ equity from discontinued operations.

(13) Includes allocations for capital and funding costs based on the location of the asset.

Average Balances and Interest Rates—Assets^(1)(2)(3)(4) 

Taxable Equivalent Basis

	Average volume				Interest revenue				% Average rate
In millions of dollars, except rates	Six Months 2015		Six Months 2014		Six Months 2015		Six Months 2014		Six Months 2015		Six Months 2014
Assets
Deposits with banks(5)	$	136,907	$	167,736	$	351	$	502	0.52	%	0.60	%
Federal funds sold and securities borrowed or purchased under agreements to resell(6)
In U.S. offices	$	150,327	$	156,023	$	590	$	506	0.79	%	0.65	%
In offices outside the U.S.(5)	88,280		104,286		716		680		1.64	%	1.31	%
Total	$	238,607	$	260,309	$	1,306	$	1,186	1.10	%	0.92	%
Trading account assets(7)(8)
In U.S. offices	$	117,923	$	112,366	$	1,903	$	1,683	3.25	%	3.02	%
In offices outside the U.S.(5)	111,000		121,951		1,187		1,323		2.16	%	2.19	%
Total	$	228,923	$	234,317	$	3,090	$	3,006	2.72	%	2.59	%
Investments
In U.S. offices
Taxable	$	213,800	$	180,713	$	1,913	$	1,516	1.80	%	1.69	%
Exempt from U.S. income tax	20,279		20,285		182		371		1.81	%	3.69	%
In offices outside the U.S.(5)	100,607		114,507		1,529		1,849		3.06	%	3.26	%
Total	$	334,686	$	315,505	$	3,624	$	3,736	2.18	%	2.39	%
Loans (net of unearned income)(9)
In U.S. offices	$	352,865	$	362,167	$	12,660	$	12,963	7.24	%	7.22	%
In offices outside the U.S.(5)	278,081		299,722		7,916		9,590		5.74	%	6.45	%
Total	$	630,946	$	661,889	$	20,576	$	22,553	6.58	%	6.87	%
Other interest-earning assets(10)	$	54,080	$	36,487	$	772	$	177	2.88	%	0.98	%
Total interest-earning assets	$	1,624,149	$	1,676,243	$	29,719	$	31,160	3.69	%	3.75	%
Non-interest-earning assets(7)	$	222,258	$	219,912
Total assets	$	1,846,407	$	1,896,155

(1) Net interest revenue includes the taxable equivalent adjustments (based on the U.S. federal statutory tax rate of 35%) of $121 million, $124 million and $121 million for the three months ended June 30, 2015, March 31, 2015 and June 30, 2014, respectively.

(2) Interest rates and amounts include the effects of risk management activities associated with the respective asset and liability categories.

(3) Monthly or quarterly averages have been used by certain subsidiaries where daily averages are unavailable.

(4) Detailed average volume, Interest revenue and Interest expense exclude Discontinued operations. See Note 2 to the Consolidated Financial Statements.

(5) Average rates reflect prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.

(6) Average volumes of securities borrowed or purchased under agreements to resell are reported net pursuant to FIN 41 (ASC 210-20-45). However, Interest revenue excludes the impact of FIN 41 (ASC 210-20-45).

(7) The fair value carrying amounts of derivative contracts are reported in Non-interest-earning assets and Other non-interest-bearing liabilities.

(8) Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively.

(9) Includes cash-basis loans.

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Average Balances and Interest Rates—Liabilities and Equity, and Net Interest Revenue^(1)(2)(3)(4) 

Taxable Equivalent Basis

	Average volume				Interest expense				% Average rate
In millions of dollars, except rates	Six Months 2015		Six Months 2014		Six Months 2015		Six Months 2014		Six Months 2015		Six Months 2014
Liabilities
Deposits
In U.S. offices(5)	$	275,596	$	287,370	$	686	$	758	0.50	%	0.53	%
In offices outside the U.S.(6)	424,092		476,159		1,928		2,160		0.92	%	0.91	%
Total	$	699,688	$	763,529	$	2,614	$	2,918	0.75	%	0.77	%
Federal funds purchased and securities loaned or sold under agreements to repurchase(7)
In U.S. offices	$	109,542	$	101,597	$	346	$	354	0.64	%	0.70	%
In offices outside the U.S.(6)	70,661		93,627		473		708		1.35	%	1.52	%
Total	$	180,203	$	195,224	$	819	$	1,062	0.92	%	1.10	%
Trading account liabilities(8)(9)
In U.S. offices	$	27,024	$	29,533	$	50	$	44	0.37	%	0.30	%
In offices outside the U.S.(6)	46,066		48,051		51		45		0.22	%	0.19	%
Total	$	73,090	$	77,584	$	101	$	89	0.28	%	0.23	%
Short-term borrowings(10)
In U.S. offices	$	68,878	$	78,097	$	94	$	89	0.28	%	0.23	%
In offices outside the U.S.(6)	52,831		36,885		182		210		0.69	%	1.15	%
Total	$	121,709	$	114,982	$	276	$	299	0.46	%	0.52	%
Long-term debt(11)
In U.S. offices	$	186,036	$	192,470	$	2,167	$	2,683	2.35	%	2.81	%
In offices outside the U.S.(6)	7,200		8,803		102		155		2.86	%	3.55	%
Total	$	193,236	$	201,273	$	2,269	$	2,838	2.37	%	2.84	%
Total interest-bearing liabilities	$	1,267,926	$	1,352,592	$	6,079	$	7,206	0.97	%	1.07	%
Demand deposits in U.S. offices	$	24,344	$	27,863
Other non-interest-bearing liabilities(8)	337,915		305,053
Total liabilities	$	1,630,185	$	1,685,508
Citigroup stockholders’ equity(12)	$	214,828	$	208,843
Noncontrolling interest	1,394		1,804
Total equity(12)	$	216,222	$	210,647
Total liabilities and stockholders’ equity	$	1,846,407	$	1,896,155
Net interest revenue as a percentage of average interest-earning assets(13)
In U.S. offices	$	913,944	$	946,824	$	14,091	$	13,316	3.11	%	2.84	%
In offices outside the U.S.(6)	710,205		729,419		9,549		10,638		2.71	%	2.94	%
Total	$	1,624,149	$	1,676,243	$	23,640	$	23,954	2.94	%	2.88	%

(1) Net interest revenue includes the taxable equivalent adjustments (based on the U.S. federal statutory tax rate of 35%) of $244 million and $249 million for the six months ended June 30, 2015 and June 30, 2014, respectively.

(2) Interest rates and amounts include the effects of risk management activities associated with the respective asset and liability categories.

(3) Monthly or quarterly averages have been used by certain subsidiaries where daily averages are unavailable.

(4) Detailed average volume, Interest revenue and Interest expense exclude Discontinued operations. See Note 2 to the Consolidated Financial Statements.

(5) Consists of other time deposits and savings deposits. Savings deposits are made up of insured money market accounts, NOW accounts, and other savings deposits. The interest expense on savings deposits includes FDIC deposit insurance fees and charges.

(6) Average rates reflect prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.

(7) Average volumes of securities loaned or sold under agreements to repurchase are reported net pursuant to FIN 41 (ASC 210-20-45). However, Interest expense excludes the impact of FIN 41 (ASC 210-20-45).

(8) The fair value carrying amounts of derivative contracts are reported in Non-interest-earning assets and Other non-interest-bearing liabilities.

(9) Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively.

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(10) Excludes hybrid financial instruments and beneficial interests in consolidated VIEs that are classified as Long-term debt, as these obligations are accounted for in changes in fair value recorded in Principal transactions.

(11) Includes stockholders' equity from discontinued operations.

(12) Includes allocations for capital and funding costs based on the location of the asset.

Analysis of Changes in Interest Revenue^(1)(2)(3) 

	2nd Qtr. 2015 vs. 1st Qtr. 2015									2nd Qtr. 2015 vs. 2nd Qtr. 2014
	Increase (decrease) due to change in:									Increase (decrease) due to change in:
In millions of dollars	Average volume			Average rate			Net change			Average volume			Average rate			Net change
Deposits with banks(4)	$	(6	)	$	(9	)	$	(15	)	$	(37	)	$	(45	)	$	(82	)
Federal funds sold and securities borrowed or   purchased under agreements to resell
In U.S. offices	$	(3	)	$	27		$	24		$	(16	)	$	66		$	50
In offices outside the U.S.(4)	(15		)	13			(2		)	(70		)	92			22
Total	$	(18	)	$	40		$	22		$	(86	)	$	158		$	72
Trading account assets(5)
In U.S. offices	$	15		$	52		$	67		$	58		$	123		$	181
In offices outside the U.S.(4)	(3		)	158			155			(72		)	60			(12		)
Total	$	12		$	210		$	222		$	(14	)	$	183		$	169
Investments(1)
In U.S. offices	$	(1	)	$	50		$	49		$	116		$	—		$	116
In offices outside the U.S.(4)	(24		)	15			(9		)	(121		)	(52		)	(173		)
Total	$	(25	)	$	65		$	40		$	(5	)	$	(52	)	$	(57	)
Loans (net of unearned income)(6)
In U.S. offices	$	(183	)	$	107		$	(76	)	$	(254	)	$	71		$	(183	)
In offices outside the U.S.(4)	35			(509		)	(474		)	(365		)	(806		)	(1,171		)
Total	$	(148	)	$	(402	)	$	(550	)	$	(619	)	$	(735	)	$	(1,354	)
Other interest-earning assets(7)	$	56		$	496		$	552		$	88		$	477		$	565
Total interest revenue	$	(129	)	$	400		$	271		$	(673	)	$	(14	)	$	(687	)

(1) The taxable equivalent adjustment is based on the U.S. federal statutory tax rate of 35% and is included in this presentation.

(2) Rate/volume variance is allocated based on the percentage relationship of changes in volume and changes in rate to the total net change.

(3) Detailed average volume, Interest revenue and Interest expense exclude Discontinued operations. See Note 2 to the Consolidated Financial Statements.

(4) Changes in average rates reflect changes in prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.

(5) Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively.

(6) Includes cash-basis loans.

(7) Includes brokerage receivables.

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Analysis of Changes in Interest Expense and Interest Revenue^(1)(2)(3) 

	2nd Qtr. 2015 vs. 1st Qtr. 2015									2nd Qtr. 2015 vs. 2nd Qtr. 2014
	Increase (decrease) due to change in:									Increase (decrease) due to change in:
In millions of dollars	Average volume			Average rate			Net change			Average volume			Average rate			Net change
Deposits
In U.S. offices	$	(15	)	$	(11	)	$	(26	)	$	(29	)	$	3		$	(26	)
In offices outside the U.S.(4)	33			(45		)	(12		)	(94		)	(61		)	(155		)
Total	$	18		$	(56	)	$	(38	)	$	(123	)	$	(58	)	$	(181	)
Federal funds purchased and securities loaned or sold under agreements to repurchase
In U.S. offices	$	10		$	10		$	20		$	24		$	(39	)	$	(15	)
In offices outside the U.S.(4)	—			47			47			(85		)	6			(79		)
Total	$	10		$	57		$	67		$	(61	)	$	(33	)	$	(94	)
Trading account liabilities(5)
In U.S. offices	$	(2	)	$	6		$	4		$	(4	)	$	8		$	4
In offices outside the U.S.(4)	1			2			3			(2		)	4			2
Total	$	(1	)	$	8		$	7		$	(6	)	$	12		$	6
Short-term borrowings(6)
In U.S. offices	$	(2	)	$	54		$	52		$	17		$	4		$	21
In offices outside the U.S.(4)	(15		)	1			(14		)	167			(193		)	(26		)
Total	$	(17	)	$	55		$	38		$	184		$	(189	)	$	(5	)
Long-term debt
In U.S. offices	$	(65	)	$	12		$	(53	)	$	(150	)	$	(116	)	$	(266	)
In offices outside the U.S.(4)	3			(2		)	1			123			(147		)	(24		)
Total	$	(62	)	$	10		$	(52	)	$	(27	)	$	(263	)	$	(290	)
Total interest expense	$	(52	)	$	74		$	22		$	(33	)	$	(531	)	$	(564	)
Net interest revenue	$	(77	)	$	325		$	248		$	(640	)	$	517		$	(123	)

(1) The taxable equivalent adjustment is based on the U.S. federal statutory tax rate of 35% and is included in this presentation.

(2) Rate/volume variance is allocated based on the percentage relationship of changes in volume and changes in rate to the total net change.

(3) Detailed average volume, Interest revenue and Interest expense exclude Discontinued operations. See Note 2 to the Consolidated Financial Statements.

(4) Changes in average rates reflect changes in prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.

(5) Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively.

(6) Includes brokerage payables.

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Analysis of Changes in Interest Revenue, Interest Expense, and Net Interest Revenue^(1)(2)(3) 

	Six Months 2015 vs. Six Months 2014
	Increase (decrease) due to change in:
In millions of dollars	Average volume			Average rate			Net change(2)
Deposits at interest with banks(4)	$	(85	)	$	(66	)	$	(151	)
Federal funds sold and securities borrowed or purchased under agreements to resell
In U.S. offices	$	(19	)	$	103		$	84
In offices outside the U.S.(4)	(114		)	150			36
Total	$	(133	)	$	253		$	120
Trading account assets(5)
In U.S. offices	$	86		$	134		$	220
In offices outside the U.S.(4)	(117		)	(19		)	(136		)
Total	$	(31	)	$	115		$	84
Investments(1)
In U.S. offices	$	299		$	(91	)	$	208
In offices outside the U.S.(4)	(216		)	(104		)	(320		)
Total	$	83		$	(195	)	$	(112	)
Loans (net of unearned income)(6)
In U.S. offices	$	(334	)	$	31		$	(303	)
In offices outside the U.S.(4)	(662		)	(1,012		)	(1,674		)
Total	$	(996	)	$	(981	)	$	(1,977	)
Other interest-earning assets	$	118		$	477		$	595
Total interest revenue	$	(1,044	)	$	(397	)	$	(1,441	)
Deposits (7)
In U.S. offices	$	(30	)	$	(42	)	$	(72	)
In offices outside the U.S.(4)	(237		)	5			(232		)
Total	$	(267	)	$	(37	)	$	(304	)
Federal funds purchased and securities loaned or sold under agreements to repurchase
In U.S. offices	$	27		$	(35	)	$	(8	)
In offices outside the U.S.(4)	(160		)	(75		)	(235		)
Total	$	(133	)	$	(110	)	$	(243	)
Trading account liabilities(5)
In U.S. offices	$	(4	)	$	10		$	6
In offices outside the U.S.(4)	(2		)	8			6
Total	$	(6	)	$	18		$	12
Short-term borrowings
In U.S. offices	$	(11	)	$	16		$	5
In offices outside the U.S.(4)	72			(100		)	(28		)
Total	$	61		$	(84	)	$	(23	)
Long-term debt
In U.S. offices	$	(87	)	$	(429	)	$	(516	)
In offices outside the U.S.(4)	(26		)	(27		)	(53		)
Total	$	(113	)	$	(456	)	$	(569	)
Total interest expense	$	(458	)	$	(669	)	$	(1,127	)
Net interest revenue	$	(586	)	$	272		$	(314	)

(1) The taxable equivalent adjustment is based on the U.S. Federal statutory tax rate of 35% and is included in this presentation.

(2) Rate/volume variance is allocated based on the percentage relationship of changes in volume and changes in rate to the total net change.

(3) Detailed average volume, Interest revenue and Interest expense exclude Discontinued operations.

(4) Changes in average rates reflect changes in prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.

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(5) Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in Trading account assets and Trading account liabilities, respectively.

(6) Includes cash-basis loans.

(7) The interest expense on deposits includes the FDIC assessment and deposit insurance fees and charges of $584 million and $532 million for the six months ended June 30, 2015 and June 30, 2014, respectively.

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Price Risk—Trading Portfolios

For additional information on the measures Citi uses to monitor price risk in its trading portfolios, as well as additional information on value at risk (VAR) and Citi’s VAR model, see “Managing Global Risk—Market Risk—Price Risk—Trading Portfolios” in Citi’s 2014 Annual Report on Form 10-K.

Value at Risk

As of June 30, 2015, Citi estimates that the conservative features of its VAR calibration contribute an approximate 20% add-on (compared to 23% at March 31, 2015) to what would be a VAR estimated under the assumption of stable and perfectly normal distributed markets.

As set forth in the table below, Citi’s average and quarter-end trading and credit portfolio VAR decreased sequentially due to exposure changes in commodities trading as well as the G10 rates business, including hedging activity associated with non-trading positions.

				Second Quarter						First Quarter						Second Quarter
In millions of dollars	June 30, 2015			2015 Average			March 31, 2015			2015 Average			June 30, 2014			2014 Average
Interest rate	$	33		$	42		$	63		$	60		$	81		$	85
Credit spread	64			70			71			75			$	72		$	73
Covariance adjustment(1)	(22		)	(25		)	(34		)	(33		)	(41		)	(43		)
Fully diversified interest rate and credit spread	$	75		$	87		$	100		$	102		$	112		$	115
Foreign exchange	32			34			29			31			26			34
Equity	24			21			25			16			24			26
Commodity	18			18			22			24			13			15
Covariance adjustment(1)	(66		)	(70		)	(69		)	(66		)	(72		)	(79		)
Total Trading VAR—all market risk factors, including general and specific risk (excluding credit portfolios)(2)	$	83		$	90		$	107		$	107		$	103		$	111
Specific risk-only component(3)	$	7		$	6		$	8		$	6		$	9		$	12
Total Trading VAR—general market risk factors only (excluding credit portfolios)(2)	$	76		$	84		$	99		$	101		$	94		$	99
Incremental Impact of the Credit Portfolio(4)	$	15		$	23		$	30		$	24		$	14		$	24
Total Trading and Credit Portfolio VAR	$	98		$	113		$	137		$	131		$	117		$	135

(1) Covariance adjustment (also known as diversification benefit) equals the difference between the total VAR and the sum of the VARs tied to each individual risk type. The benefit reflects the fact that the risks within each and across risk types are not perfectly correlated and, consequently, the total VAR on a given day will be lower than the sum of the VARs relating to each individual risk type. The determination of the primary drivers of changes to the covariance adjustment is made by an examination of the impact of both model parameter and position changes.    

(2) The total Trading VAR includes mark-to-market and certain fair value option trading positions from ICG and Citi Holdings, with the exception of hedges to the loan portfolio, fair value option loans, and all CVA exposures. Available-for-sale and accrual exposures are not included.

(3) The specific risk-only component represents the level of equity and fixed income issuer-specific risk embedded in VAR.

(4) The credit portfolio is composed of mark-to-market positions associated with non-trading business units including Citi Treasury, the CVA relating to derivative counterparties and all associated CVA hedges. FVA and DVA are not included. The credit portfolio also includes hedges to the loan portfolio, fair value option loans and hedges to the leveraged finance pipeline within capital markets origination within ICG.

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The table below provides the range of market factor VARs associated with Citi’s Total Trading VAR, inclusive of specific risk, that was experienced during the following quarters:

	Second Quarter				First Quarter				Second Quarter
	2015				2015				2014
In millions of dollars	Low		High		Low		High		Low		High
Interest rate	$	29	$	73	$	39	$	84	$	65	$	101
Credit spread	63		77		66		94		68		82
Fully diversified interest rate and credit spread	$	71	$	106	$	86	$	127	$	101	$	129
Foreign exchange	22		51		20		43		23		59
Equity	12		32		9		26		18		44
Commodity	15		22		18		37		11		20
Total Trading	$	71	$	107	$	85	$	140	$	96	$	139
Total Trading and Credit Portfolio	89		141		108		158		111		172

Note: No covariance adjustment can be inferred from the above table as the high and low for each market factor will be from different close of business dates.

The following table provides the VAR for ICG during the second quarter of 2015, excluding the CVA relating to derivative counterparties, hedges of CVA, fair value option loans and hedges to the loan portfolio.

In millions of dollars	Jun. 30, 2015
Total—all market risk factors, including general and specific risk	$	79
Average—during quarter	$	84
High—during quarter	99
Low—during quarter	67

Regulatory VAR Back-testing

In accordance with Basel III, Citi is required to perform back-testing to evaluate the effectiveness of its Regulatory VAR model (for additional information on Regulatory VAR, see “Managing Global Risk—Market Risk—Price Risk—Trading Portfolios” in Citi’s 2014 Annual Report on Form 10-K). Regulatory VAR back-testing is the process in which the daily one-day VAR, at a 99% confidence interval, is compared to the buy-and-hold profit and loss (e.g., the profit and loss impact if the portfolio is held constant at the end of the day and re-priced the following day). Buy-and-hold profit and loss represents the daily mark-to-market profit and loss attributable to price movements in covered positions from the close of the previous business day. Buy-and-hold profit and loss excludes realized trading revenue, net interest, fees and commissions, intra-day trading profit and loss, and changes in reserves. Regulatory VAR back-testing is performed against buy-and-hold profit and loss on a monthly basis for multiple portfolios across the

organization (trading desk level, ICG business segment and

Citigroup) and the results are shared with the U.S. banking

regulators.

Based on a 99% confidence level, Citi would expect two to three days in any one year where buy-and-hold losses exceeded the Regulatory VAR. Given the conservative calibration of Citi’s VAR model (as a result of taking the greater of short- and long-term volatilities and fat-tail scaling of volatilities), Citi would expect fewer exceptions under

normal and stable market conditions. Periods of unstable market conditions could increase the number of back-testing exceptions.

As of June 30, 2015, there were two back-testing exceptions observed for Citi’s Regulatory VAR for the prior 12 months. As previously disclosed, trading losses on October 15, 2014 exceeded the VAR estimate at the Citigroup level due to significant market movements and volatility that impacted various fixed income as well as equities trading business. The second back-testing exception occurred on January 15, 2015 following the Swiss National Bank’s announcement removing the minimum exchange rate of Swiss franc per euro.

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COUNTRY AND CROSS-BORDER RISK

For an overview of, and additional information on, country and cross-border risk at Citi, including its risk management processes, see “Risk Factors,” “Managing Global Risk” and “Managing Global Risk—Country and Cross-Border Risk” in Citi’s 2014 Annual Report on Form 10-K.

COUNTRY RISK

Emerging Markets Exposures

Citi generally defines emerging markets as countries in Latin America, Asia (other than Japan, Australia and New Zealand), central and eastern Europe, the Middle East and Africa.

The following table presents Citicorp’s principal emerging markets assets as of June 30, 2015. For

purposes of the table below, loan amounts are generally based on the domicile of the borrower. For example, a loan to a Chinese subsidiary of a Switzerland-based corporation will generally be categorized as a loan in China. Trading account assets and investment securities are generally categorized below based on the domicile of the issuer of the security or the underlying reference entity (for additional information on the assets included in the table, see the footnotes to the table below).

As of June 30, 2015												As of Mar. 31, 2015		As of June 30, 2014		GCB NCL Rate
In billions of dollars	Trading Account Assets(1)			Investment Securities(2)		ICG Loans(3)(4)		GCB Loans(3)		Aggregate(5)		Aggregate(5)		Aggregate(5)		2Q’15		1Q’15		2Q’14
Mexico	$	4.9		$	18.9	$	9.5	$	27.0	$	60.3	$	59.9	$	70.5	4.7	%	5.3	%	4.7	%
Korea	0.4			9.8		3.5		21.1		34.8		37.3		40.9		0.6		0.6		1.0
Singapore	0.1			6.3		8.1		14.4		28.9		27.8		30.6		0.3		0.2		0.3
Hong Kong	0.4			3.3		11.3		10.8		25.8		26.8		29.0		0.5		0.4		0.4
India	2.0			7.0		9.4		6.2		24.6		26.1		26.3		0.6		0.7		1.0
Brazil	2.7			2.8		15.0		3.4		23.9		23.0		27.4		6.9		4.8		5.5
China	2.8			3.0		10.2		5.1		21.1		19.8		22.8		0.8		1.0		0.8
Taiwan	1.6			0.9		4.7		7.7		15.0		13.6		14.8		0.2		0.2		(0.1	)
Poland	0.2			3.7		1.4		2.8		8.1		8.6		9.8		0.3		0.3		0.2
Malaysia	0.2			0.2		1.9		5.2		7.4		7.4		9.2		0.8		0.7		0.7
Indonesia	0.3			0.8		4.0		1.3		6.5		6.5		7.3		4.1		2.2		2.3
Russia(6)	0.4			0.5		3.3		1.1		5.3		6.1		8.9		3.5		3.0		2.4
Colombia	0.1			0.4		2.4		1.9		4.8		4.3		5.7		3.0		3.4		3.5
UAE	(0.3		)	—		3.2		1.6		4.6		4.3		4.3		2.0		1.7		1.9
Thailand	0.1			1.1		1.1		2.0		4.3		4.7		4.9		2.9		2.8		2.2
Turkey	(0.1		)	0.2		2.9		0.8		3.7		4.0		5.0		(0.4	)	(0.1	)	(0.1	)
Argentina(6)	0.4			0.3		1.7		1.2		3.5		3.2		2.7		0.7		0.8		0.7
Philippines	0.1			0.4		1.3		1.0		2.8		3.0		3.0		4.0		4.6		4.2
South Africa	(0.1		)	0.6		1.9		—		2.4		3.2		2.1		—		—		—
Peru	—			0.3		1.6		—		1.8		1.8		1.4		—		—		—

Note: Aggregate may not cross-foot due to rounding.

(1) Trading account assets are shown on a net basis and include derivative exposures where the underlying reference entity is located in that country. Does not include counterparty credit exposures.

(2) Investment securities include securities available-for-sale, recorded at fair market value, and securities held-to-maturity, recorded at historical cost. Does not include investments accounted for under the equity method.

(3) Reflects funded loans, net of unearned income. In addition to the funded loans disclosed in the table above, through its ICG businesses, Citi had unfunded commitments to corporate customers in the emerging markets of approximately $33 billion as of June 30, 2015 (compared to $36 billion and $33 billion as of March 31, 2015 and June 30, 2014, respectively); no single country accounted for more than $4 billion of this amount.

(4) As of June 30, 2015, non-accrual loans represented 0.4% of total ICG loans in the emerging markets. For the countries in the table above, non-accrual loan ratios as of June 30, 2015 ranged from 0.0% to 0.3%, other than in Hong Kong and Brazil. In Hong Kong, the non-accrual loan ratio was 1.3% in each of the quarters presented, primarily reflecting the impact of one counterparty. In Brazil, the non-accrual loan ratio was 0.6% as of June 30, 2015 (compared to 0.6% and 0.3% as of March 31, 2015 and June 30, 2014, respectively), primarily reflecting the impact of one counterparty.

(5) Aggregate of Trading account assets, Investment securities, ICG loansand GCB loans, based on the methodologies described above.

(6) For additional information on certain risks relating to Russia and Argentina, see “Cross-Border Risk” below.

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Emerging Markets Trading Account Assets and Investment Securities

In the ordinary course of business, Citi holds securities in its trading accounts and investment accounts, including those above. Trading account assets are marked to market daily, with asset levels varying as Citi maintains inventory consistent with customer needs. Investment securities are recorded at either fair value or historical cost, based on the underlying accounting treatment, and are predominantly held as part of the local entity asset and liability management program or to comply with local regulatory requirements. In the markets in the table above, 98% of Citi’s investment securities were related to sovereign issuers as of June 30, 2015.

Emerging Markets Consumer Lending

GCB’s strategy within the emerging markets is consistent with GCB’s overall strategy, which is to leverage its global footprint to serve its target clients. The retail bank seeks to be the preeminent bank for the emerging affluent and affluent consumers in large urban centers. In credit cards and in certain retail markets, Citi serves customers in a somewhat broader set of segments and geographies. Commercial banking generally serves small- and middle-market enterprises operating in GCB’s geographic markets, focused on clients that value Citi’s global capabilities. Overall, Citi believes that its customers are more resilient than the overall market under a wide range of economic conditions. Citi’s consumer business has a well established risk appetite framework across geographies and products that reflects the business strategy and activities and establishes boundaries around the key risks that arise from the strategy and activities.

As of June 30, 2015, GCB had approximately $116 billion of consumer loans outstanding to borrowers in the emerging markets, or approximately 41% of GCB’s total loans, compared to $115 billion (41%) and $125 billion (42%) as of March 31, 2015 and June 30, 2014, respectively. Of the approximate $116 billion as of June 30, 2015, the five largest emerging markets—Mexico, Korea, Singapore, Hong Kong and Taiwan—comprised approximately 29% of GCB’s total loans.

Within the emerging markets, 30% of Citi’s GCB loans were mortgages, 26% were commercial markets loans, 24% were personal loans and 20% were credit cards loans, each as of June 30, 2015.

Overall consumer credit quality remained generally stable in the second quarter of 2015, as net credit losses in the emerging markets were 1.9% of average loans, compared to 1.9% and 2.0% in the first quarter of 2015 and second quarter of 2014, respectively, consistent with Citi’s target market strategy and risk appetite framework.

Emerging Markets Corporate Lending

Consistent with ICG’s overall strategy, Citi’s corporate clients in the emerging markets are typically large, multinational corporations that value Citi’s global network. Citi aims to establish relationships with these clients that encompass multiple products, consistent with client needs, including cash management and trade services, foreign exchange, lending, capital markets and M&A advisory. Citi believes that its target corporate segment is more resilient under a wide range of economic conditions, and that its relationship-based approach to client service enables it to effectively manage the risks inherent in such relationships. Citi has a well established risk appetite framework around its corporate lending activities, including risk-based limits and approval authorities and portfolio concentration boundaries.

As of June 30, 2015, ICG had approximately $118 billion of loans outstanding to borrowers in the emerging markets, representing approximately 41% of ICG total loans outstanding, compared to $115 billion (41%) and $132 billion (47%) as of March 31, 2015 and June 30, 2014, respectively. No single emerging market-country accounted for more than 5% of Citi’s ICG loans as of the end of the second quarter of 2015.

As of June 30, 2015, approximately 75% of Citi’s emerging markets corporate credit portfolio (excluding private bank in ICG), including loans and unfunded lending commitments, was rated investment grade, which Citi considers to be ratings of BBB or better according to its internal risk measurement system and methodology (for additional information on Citi’s internal risk measurement system for corporate credit, see “Corporate Credit Details” above). The vast majority of the remainder was rated BB or B according to Citi’s internal risk measurement system and methodology.

Overall ICG net credit losses in the emerging markets were 0.2% of average loans in the second quarter of 2015, compared to 0.0% in both the first quarter of 2015 and second quarter of 2014. The ratio of non-accrual ICG loans to total loans in the emerging markets declined to 0.4% as of June 30, 2015, compared to 0.6% and 0.5% as of March 31, 2015 and June 30, 2014, respectively.

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CROSS-BORDER RISK

Argentina

For additional background and other information relating to Citi’s operations, risks and exposures in Argentina, see “Managing Global Risk-Cross-Border Risk” in Citi’s 2014 Annual Report on Form 10-K and First Quarter of 2015 Form 10-Q.

As of June 30, 2015, Citi’s net investment in its Argentine operations was approximately $865 million, compared to $840 million at March 31, 2015. Citi uses the Argentine peso as the functional currency in Argentina and translates its financial statements into U.S. dollars using the official exchange rate as published by the Central Bank of Argentina. According to the official exchange rate, the Argentine peso devalued to 9.09 pesos to one U.S. dollar at June 30, 2015 compared to 8.82 pesos to one U.S. dollar at March 31, 2015.

At June 30, 2015, Citi had cumulative translation losses related to its investment in Argentina, net of qualifying net investment hedges, of approximately $1.63 billion (pretax), which were recorded in stockholders’ equity. This compared to $1.59 billion (pretax) as of March 31, 2015. The cumulative translation losses would not be reclassified into earnings unless realized upon sale, deconsolidation, or liquidation of substantially all of Citi’s Argentine operations.

Citi hedges currency risk in its net investment in Argentina to the extent possible and prudent. As of June 30, 2015, Citi’s total hedges against its net investment in Argentina were approximately $881 million, compared to $860 million as of March 31, 2015.

As of June 30, 2015, Citi had total third-party assets of approximately $4.4 billion in Citi Argentina ($4.3 billion as of March 31, 2015), primarily composed of corporate and consumer loans and cash on deposit with and short-term paper issued by the Central Bank of Argentina. A significant portion of these assets was funded with local deposits. Included in the total assets were U.S.-dollar-denominated assets of approximately $500 million, compared to approximately $460 million at March 31, 2015. (For additional information on Citi’s exposures related to Argentina, see “Emerging Market Exposures” above, which sets forth Citi’s trading account assets, investment securities, ICG loans and GCB loans in Argentina, based on the methodology described in such section. As described in such section, these assets totaled approximately $3.5 billion as of June 30, 2015. Approximately $240 million of such exposure is held by non-Argentine Citi subsidiaries and thus is not included in the $4.4 billion amount set forth above, which pertains only to Citi Argentina, as disclosed.)

As widely reported and previously disclosed, Argentina continues to be engaged in litigation in the U.S. with certain “holdout” bond investors who did not accept restructured bonds in the restructuring of Argentine debt after Argentina defaulted on its sovereign obligations in 2001. Also as previously disclosed, Citi Argentina has acted as a custodian in Argentina for certain of the restructured bonds that are part of the “holdout” bond litigation; specifically, U.S.-

dollar-denominated restructured bonds governed by Argentina law and payable in Argentina.

This situation continued to evolve during the second quarter of 2015, with the holdout investors taking steps in the U.S. courts to try to expand the scope of the order to cover additional external indebtedness of the Republic of Argentina and with the government of Argentina taking legal measures against the Argentine branch as a result of Citi’s planned exit of its custody business in Argentina. Additional negative consequences to Citi’s franchise in Argentina may occur, some of which could be significant, including sanctions, additional business restrictions, the loss of licenses to operate in Argentina and criminal charges against bank employees. The situation could also expose Citi and Citi Argentina to further litigation and penalties.

Venezuela

Since 2003, the Venezuelan government has implemented and operated restrictive foreign exchange controls. These exchange controls have limited Citi’s ability to obtain U.S. dollars in Venezuela; Citi has not been able to acquire U.S. dollars from the Venezuelan government since 2008.

As previously disclosed, the Venezuelan government maintains a three-tiered foreign exchange system. As of June 30, 2015, the three separate official foreign exchange rates were:

• the preferential foreign exchange rate offered by the National Center for Foreign Trade (CENCOEX), fixed at 6.3 bolivars to one U.S. dollar;

• the SICAD rate, which was 12.8 bolivars to one U.S. dollar; and

• the SIMADI rate, which was 197 bolivars to one U.S. dollar.

Citi uses the U.S. dollar as the functional currency for its operations in Venezuela. As of June 30, 2015, Citi remeasures its net bolivar denominated monetary assets at the SICAD rate, as the SICAD rate is the only rate at which Citi is legally eligible to acquire U.S. dollars from CENCOEX, despite the limited availability of U.S. dollars and although the SICAD rate may not necessarily be reflective of economic reality. Losses due to remeasurement of Citi’s bolivar-denominated assets and liabilities due to changes in the SICAD rate are recorded in earnings. Further devaluation in the SICAD exchange rate, a change in Citi’s eligibility to utilize a different exchange mechanism resulting in a less favorable rate, or other unfavorable changes to the foreign exchange mechanisms would result in foreign exchange losses in the period in which such devaluation or change occurs.

At June 30, 2015, Citi’s net investment in its Venezuelan operations was approximately $192 million ($180 million at March 31, 2015), which included net monetary assets denominated in Venezuelan bolivars of approximately $155 million ($151 million at March 31, 2015). Total third-party assets of Citi Venezuela were approximately $0.9 billion at June 30, 2015 (compared to $1.1 billion at March 31, 2015), primarily composed of cash on deposit with the Central Bank of Venezuela, corporate and consumer loans, and

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government bonds. A significant portion of these assets was funded with local deposits.

Greece

On July 13, 2015, Eurozone lenders approved in principle a third bailout financing program for Greece which would provide Greece with up to 86 billion euros ($96 billion) in new loans, subject to stricter reform conditions and additional austerity measures. These measures must be implemented by the Greek government in a tightly monitored rolling schedule of legislation and implementation. The deal has been approved by the Greek parliament, which has begun to pass the necessary legislation, allowing negotiations on a new memorandum of understanding to begin. If these negotiations fail or the reforms falter, the new loans will not be extended, which would lead to Greece defaulting on its debt obligations and possibly even to exit from the Euro. In addition, although Greek banks have reopened after a period of closure, capital controls remain.

As of June 30, 2015, Citi had total third-party assets and liabilities of approximately $201 million and $404 million, respectively, in Citi’s Greek branch. This compared to approximately $44 million and $481 million, respectively, as of March 31, 2015. Included in the total third-party assets and liabilities as of the end of the current quarter were non-euro-denominated assets and liabilities of $0.8 million and $27 million, respectively (compared to $1.5 million and $52 million, respectively, as of March 31, 2015). As of July 31, 2015, Citi’s estimates that its Greek branch had approximately $80 million and $620 million in total third-party assets and liabilities, respectively.

If Greece were to leave the EMU, certain of its obligations could be redenominated from the euro to a new country currency (e.g., drachma). While alternative scenarios could develop, redenomination could be accompanied by an immediate devaluation of the new currency as compared to the euro and the U.S. dollar. Citi is exposed to potential redenomination and devaluation risks arising from (i) euro-denominated assets and/or liabilities located or held within Greece that are governed by local country law (local exposures), as well as (ii) other euro-denominated assets and liabilities, such as loans and securitized products, between entities outside of Greece and a client or clients within Greece that are governed by local country law (offshore exposures).

If Greece were to withdraw from the EMU, and assuming a symmetrical redenomination and devaluation occurred, Citi believes its risk of loss would be limited as its liabilities subject to redenomination exceeded assets held both locally and offshore as of June 30, 2015. However,

the actual assets and liabilities that could be subject to redenomination and devaluation risk, as well as whether any redenomination is asymmetrical, are subject to substantial legal and other uncertainties. In addition, other events outside of Citi’s control—such as the extent of any deposit

flight and devaluation, imposition by U.S. regulators of mandatory loan reserve requirements or any functional

currency change and the accounting impact thereof—could further negatively impact Citi in such an event.

In addition to Citi’s Greek branch assets and liabilities described above, as of June 30, 2015, other (non-Greek) Citi branches and subsidiaries had exposures of approximately $1.1 billion to Greek obligors, such as loans (including unfunded commitments), derivatives, and securitized products, net of purchased credit protection, that could experience credit losses under potential country or

cross-border risk events. This estimated exposure is based on Citi’s internal risk management measures and systems where the country designation is based on the country to which the

client relationship, taken as a whole, is most directly exposed to economic, financial, sociopolitical or legal risks. As a result, the estimated exposures described above may include exposures to subsidiaries within the client relationship that are actually domiciled outside of Greece (e.g., loans, derivatives and other exposures to a U.K. subsidiary of a Greece-based corporation). Citi believes that the risk of loss associated with its estimated exposure described above is likely lower because a significant amount of the exposure relates to high-quality secured corporate loans not expected to be subject to redenomination.

Russia

Continued unrest in the region and international sanctions are having a significant impact on Russia’s economy. The Russian ruble appreciated by 4% against the U.S. dollar from March 31, 2015 to June 30, 2015.

Citibank operates in Russia through a subsidiary, which uses the Russian ruble as its functional currency. Citibank’s net investment in Russia was approximately $1.2 billion at June 30, 2015, compared to $1.0 billion at March 31, 2015. Substantially all of Citibank’s net investment was hedged (subject to related tax adjustments) as of June 30, 2015, using forward foreign exchange contracts. Total third-party assets of the Russian Citibank subsidiary were approximately $4.6 billion as of June 30, 2015 and March 31, 2015. These assets were primarily composed of corporate and consumer loans, Russian government debt securities, and cash on deposit with the Central Bank of Russia. The large majority of the above assets were funded by local deposit liabilities.

For additional information on Citi’s exposures related to Russia, see “Emerging Market Exposures” above, which sets forth Citi’s trading account assets, investment securities, ICG loans and GCB loans in Russia, based on the methodology described in such section. As disclosed in such section, these assets totaled approximately $5.3 billion as of June 30, 2015. Approximately $1.5 billion of such exposure is held on non-Russian Citi subsidiaries and thus is not included in the $4.6 billion amount set forth above, which pertains only to the Russian Citibank subsidiary, as disclosed.

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INCOME TAXES

Deferred Tax Assets

For additional information on Citi’s deferred tax assets (DTAs), see “Risk Factors—Business and Operational Risks,” “Significant Accounting Policies and Significant Estimates—Income Taxes” and Note 9 to the Consolidated Financial Statements in Citi’s 2014 Annual Report on Form 10-K.

At June 30, 2015, Citigroup had recorded net DTAs of approximately $47.9 billion, a decrease of $0.3 billion from March 31, 2015 and a decrease of $1.5 billion from December 31, 2014. The sequential decrease in DTAs was driven primarily by the continued generation of U.S. taxable earnings in Citicorp partially offset by the change in Other Comprehensive Income (see Note 18 to the Consolidated Financial statements).

The following table summarizes Citi’s net DTAs balance as of the periods presented. Of Citi’s net DTAs as of June 30, 2015, those arising from net operating losses, foreign tax credit and general business credit carry-forwards are 100% deducted in calculating Citi’s regulatory capital, while DTAs arising from temporary differences are deducted from regulatory capital if in excess of the 10%/15% limitations (see “Capital Resources” above). Approximately $16.3 billion of the net DTA was not deducted in calculating regulatory capital pursuant to full Basel III implementation standards as of June 30, 2015. Citigroup seeks to improve the regulatory capital benefits of its DTAs through tax planning actions, including third-party transactions, as appropriate.

Jurisdiction/Component	DTAs balance
In billions of dollars	June 30, 2015		December 31, 2014
Total U.S.	$	45.4	$	46.5
Total foreign	2.5		2.8
Total	$	47.9	$	49.3

Effective Tax Rate

Citi’s effective tax rate for the second quarter of 2015 was 29.2% (excluding CVA/DVA), lower than the effective tax rate in the second quarter of 2014 of 33.5% (excluding CVA/DVA and the impact of the mortgage settlement in the prior-year period). The current quarter rate reflected a state and local audit settlement, which increased the value of Citi’s DTAs, the impact of certain legal entity restructurings and dispositions and New York City tax reform (see below), which reduced the value of the DTAs (See “Executive Summary”).

Tax Legislation

In April 2015, the Governor of New York signed legislation bringing New York City into substantive conformity with the New York State corporate tax system, which had been reformed in 2014. The legislation is retroactive to January 1, 2015. Citigroup reported the effect of these changes in its second quarter of 2015 results with a charge of $212 million.

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DISCLOSURE CONTROLS AND PROCEDURES

Citi’s disclosure controls and procedures are designed to ensure that information required to be disclosed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, including without limitation that information required to be disclosed by Citi in its SEC filings is accumulated and communicated to management, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) as appropriate to allow for timely decisions regarding required disclosure.

Citi’s Disclosure Committee assists the CEO and CFO in their responsibilities to design, establish, maintain and evaluate the effectiveness of Citi’s disclosure controls and procedures. The Disclosure Committee is responsible for, among other things, the oversight, maintenance and implementation of the disclosure controls and procedures, subject to the supervision and oversight of the CEO and CFO.

Citi’s management, with the participation of its CEO and CFO, has evaluated the effectiveness of Citigroup’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of June 30, 2015 and, based on that evaluation, the CEO and CFO have concluded that at that date Citigroup’s disclosure controls and procedures were effective.

DISCLOSURE PURSUANT TO SECTION 219 OF THE IRAN THREAT REDUCTION AND SYRIA HUMAN RIGHTS ACT

Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which added Section 13(r) to the Securities Exchange Act of 1934, as amended, Citi is required to disclose in its annual or quarterly reports, as applicable, whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with individuals or entities that are subject to sanctions under U.S. law. Disclosure is generally required even where the activities, transactions or dealings were conducted in compliance with applicable law.

Citibank, N.A. has branch operations in Venezuela (Citibank Venezuela). This branch participates in the local government-run clearing and settlement exchange network. As required by the local law and the applicable operating rules for this exchange network, all network participants, including Citibank Venezuela, must process transactions in which funds are drawn from, or deposited into, client accounts of other network participants.

The Office of Foreign Assets Control (OFAC) has been aware of the requirement for Citibank Venezuela to process transactions on this exchange network. Citi has a license application pending with OFAC in connection with this activity.

During the second quarter of 2015, Citibank Venezuela received three incoming payments from Banco Internacional de Desarrollo (BID), an OFAC designated bank, through Venezuela’s Electronic Clearing House System (Camara de Compensación Electronica or CCE).  The three payments

represented personal transfers by an individual retail accountholder, debiting the accountholder’s account at BID and crediting the accountholder’s account at Citibank Venezuela.  The total value of the transactions was approximately $101,600.00 (1.3 million VEF).  The transactions did not result in any revenue or profit for Citi. 

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FORWARD-LOOKING STATEMENTS

Certain statements in this Form 10-Q, including but not limited to statements included within the Management’s Discussion and Analysis of Financial Condition and Results of Operations, are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. In addition, Citigroup also may make forward-looking statements in its other documents filed or furnished with the SEC, and its management may make forward-looking statements orally to analysts, investors, representatives of the media and others.

Generally, forward-looking statements are not based on historical facts but instead represent Citigroup’s and its management’s beliefs regarding future events. Such statements may be identified by words such as believe, expect, anticipate, intend, estimate, may increase, may fluctuate, and similar expressions or future or conditional verbs such as will, should, would and could.

Such statements are based on management’s current expectations and are subject to risks, uncertainties and changes in circumstances. Actual results and capital and other financial conditions may differ materially from those included in these statements due to a variety of factors, including without limitation the precautionary statements included within each individual business’ discussion and analysis of its results of operations above and in Citi’s 2014 Annual Report on Form 10-K, the factors listed and described under “Risk Factors” in Citi’s 2014 Annual Report on Form 10-K and the risks and uncertainties summarized below:

• the ongoing extensive regulatory changes and uncertainties faced by Citi globally, including, among others, interest rate caps and caps on interchange rates, and the potential impact these changes and uncertainties could have on Citi’s strategy, individual businesses’ and overall results of operations, ability to make progress on its execution priorities and its compliance risks and costs;

• uncertainties relating to ongoing regulatory supervision and potential changes to the regulatory capital requirements applicable to Citi and certain of its affiliated entities, and the potential impact these uncertainties could have on Citi’s total risk-weighted assets, leverage assets and ability to meet its capital requirements as it projects or as required;

• the potential impact ongoing events in the banking industry generally, including litigation and regulatory settlements, can have on Citi’s operational risk-weighted assets and thus its overall risk-weighted assets;

• the potential impact to Citi if it is unable to address the shortcomings identified in 2014 by the Federal Reserve Board and FDIC as part of Citi’s 2015 resolution plan submission, including the potential for more stringent capital, leverage or liquidity requirements, restrictions on its growth, activities or operations, or requirements to divest certain assets or operations, which could negatively impact Citi’s operations or strategy;

• the ongoing uncertainties and potential impact to Citi’s funding and liquidity management and structure and

overall results of operations as a result of potential regulatory requirements in the U.S. mandating minimum levels of total loss-absorbing capacity (TLAC), including the potential interplay between Citi’s capital and TLAC requirements;

• the potential impact to Citi’s derivative businesses and results of operations arising from the ongoing implementation and interpretation of derivatives regulation in the U.S. and globally, including on Citi’s competitive position and its compliance risks and costs;

• ongoing interpretive uncertainties and compliance risks and costs associated with the implementation of the Volcker Rule;

• the uncertainties and potential impact to Citi’s businesses and results of operations of recently adopted and anticipated future regulations applicable to securitizations;

• the potential impact to Citi’s businesses, results of operations and financial condition of ongoing macroeconomic uncertainties and volatilities, including changes in U.S. and non-U.S. fiscal and monetary actions or expected actions, geopolitical tensions, economic growth, including in the emerging markets, and ongoing concerns relating to potential sovereign defaults and the potential impact of any such defaults on the global economy;

• risks arising from Citi’s international and emerging markets operations, such as in Argentina, including nationalization or loss of licenses, sanctions, criminal charges, closure of branches or subsidiaries, confiscation of assets, fraud and foreign exchange controls, as well as changes in foreign exchange rates generally and increased compliance and regulatory risks and costs;

• the potential impact to Citi’s delinquency rates, net credit losses, loan loss reserves and overall results of operations as Citi’s revolving home equity lines of credit (HELOCs) continue to “reset,” particularly given the limitations on Citi’s ability to reduce or mitigate this reset risk going forward;

• the potential impact concentrations of risk could have on Citi’s hedging strategies and results of operations, including Citi’s credit risk to the U.S. government and its agencies and market risk arising from Citi’s high volume of transactions with counterparties in the financial services industry;

• the potential impact to Citi’s funding and liquidity, as well as its liquidity planning and management, arising from the continued heightened regulatory focus on, and ongoing changes to, the liquidity standards and requirements applicable, or expected to be applicable, to Citi;

• potential impacts on Citi’s liquidity and/or costs of funding as a result of external factors, such as market disruptions, governmental fiscal and monetary policies, regulatory requirements and changes in Citi’s credit spreads;

• rating downgrades of Citi or its more significant subsidiaries, including as a result of changes in assumptions relating to government support, and the

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potential impact on Citi’s funding and liquidity as well as the results of operations for certain of its businesses;

• the potential impact to Citi’s businesses, business practices, reputation, financial condition or results of operations that could result from the extensive legal, governmental and regulatory proceedings, investigations and inquiries to which Citi is or may be subject at any given time, including as a result of fines, penalties, consent orders or other similar remedies or sanctions;

• uncertainties arising from the continued heightened scrutiny and expectations of the financial services industry by regulators and other enforcement authorities with respect to “conduct” risk, the overall “culture” of the financial services industry generally and the effectiveness of an individual firm’s control functions in deterring or preventing employee misconduct;

• Citi’s ability to meet the Federal Reserve Board’s evolving stress testing requirements and qualitative factors pursuant to the annual Comprehensive Capital Analysis and Review (CCAR), including as a result of the potential inclusion of Citi’s GSIB surcharge requirement in the stress tests;

• Citi’s ability to continue to wind-down the assets in Citi Holdings, including those pursuant to which it has executed agreements to sell the assets, as it expects or projects, whether due to required regulatory approvals or other closing conditions, market appetite and/or buyer funding or otherwise;

• Citi’s ability to successfully achieve its execution priorities, including maintaining expense discipline, continuing to wind down Citi Holdings while maintaining it at or above “break even” on a full-year 2015 basis and continued utilization of its deferred tax assets (DTAs), and the potential impact its inability to do so could have on the achievement of its 2015 operating efficiency and return on assets targets;

• Citi’s ability to continue to utilize its DTAs (including the foreign tax credit component of its DTAs), including by continuing to generate U.S. taxable income during the relevant carry-forward periods, changes in Citi’s accumulated other comprehensive income (AOCI), whether as a result of changes in interest or foreign exchange rates, or otherwise;

• the impact on the value of Citi’s DTAs and its results of operations if corporate tax rates in the U.S. or certain local, state or foreign jurisdictions decline, or if other changes are made to the U.S. tax system, such as the treatment of foreign corporate earnings;

• the potential impact to Citi if Citi’s interpretation or application of the extensive tax laws to which it is subject, such as with respect to withholding tax obligations and stamp and other transactional taxes, differs from that of the relevant governmental taxing authorities;

• the potential impact to Citi from continually evolving and increasing cybersecurity and other technological risks and attacks, including fraud losses, additional costs, reputational damage, loss of customers, regulatory penalties, exposure to litigation and other potential financial losses to both Citi and its clients and customers;

• Citi’s failure to maintain, or its ability to enter into any new (including the acquisition of related card receivables portfolios), co-branding or private-label relationships with various third-party retailers and merchants within its U.S. credit card businesses in North AmericaGCB as it expects or projects, or on terms favorable to the businesses, and the potential impact of any such event(s) on the results of operations or financial condition of those businesses;

• the potential impact to Citi’s results of operations and financial condition if its risk management models, processes or strategies are not effective;

• the potential impact on Citi’s performance, including its competitive position and ability to execute its strategy, if Citi is unable to hire or retain qualified employees due to regulatory restrictions on compensation or otherwise; and

• the impact incorrect assumptions or estimates in Citi’s financial statements, as well as ongoing regulatory or other changes to financial accounting and reporting standards or interpretations, could have on Citi’s financial condition and results of operations and how it records and reports its financial condition and results of operations.

Any forward-looking statements made by or on behalf of Citigroup speak only as to the date they are made, and Citi does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

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FINANCIAL STATEMENTS AND NOTES TABLE OF CONTENTS

CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Statement of Income (Unaudited)— For the Three and Six Months Ended June 30, 2015 and 2014	101
Consolidated Statement of Comprehensive Income (Unaudited)—For the Three and Six Months Ended      June 30, 2015 and 2014	103
Consolidated Balance Sheet—June 30, 2015 (Unaudited) and December 31, 2014	104
Consolidated Statement of Changes in Stockholders’ Equity(Unaudited)—For the Six Months Ended June 30, 2015 and 2014	106
Consolidated Statement of Cash Flows (Unaudited)—     For the Six Months Ended June 30, 2015 and 2014	108

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1—Basis of Presentation and Accounting Changes	110
Note 2—Discontinued Operations and Significant Disposals	112
Note 3—Business Segments	115
Note 4—Interest Revenue and Expense	116
Note 5—Commissions and Fees	117
Note 6—Principal Transactions	118
Note 7—Incentive Plans	119
Note 8—Retirement Benefits	120
Note 9—Earnings per Share	125
Note 10—Federal Funds, Securities Borrowed, Loaned and Subject to Repurchase Agreements	126
Note 11—Brokerage Receivables and Brokerage Payables	129
Note 12—Trading Account Assets and Liabilities	129
Note 13—Investments	130
Note 14—Loans	143

Note 15—Allowance for Credit Losses	150
Note 16—Goodwill and Intangible Assets	152
Note 17—Debt	154
Note 18—Changes in Accumulated Other Comprehensive Income (Loss)	155
Note 19—Preferred Stock	159
Note 20—Securitizations and Variable Interest Entities	161
Note 21—Derivatives Activities	176
Note 22—Fair Value Measurement	191
Note 23—Fair Value Elections	217
Note 24—Guarantees and Commitments	221
Note 25—Contingencies	227

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CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF INCOME (Unaudited)    Citigroup Inc. and Subsidiaries

	Three Months Ended June 30,						Six Months Ended June 30,
In millions of dollars, except per share amounts	2015			2014			2015			2014
Revenues (1)
Interest revenue	$	14,873		$	15,561		$	29,473		$	30,911
Interest expense	3,051			3,615			6,079			7,206
Net interest revenue	$	11,822		$	11,946		$	23,394		$	23,705
Commissions and fees	$	3,194		$	3,441		$	6,364		$	6,625
Principal transactions	2,173			1,843			4,144			4,731
Administration and other fiduciary fees	995			1,029			1,957			2,038
Realized gains on sales of investments, net	183			84			490			212
Other-than-temporary impairment losses on investments
Gross impairment losses	(43		)	(37		)	(115		)	(238		)
Less: Impairments recognized in AOCI	—			—			—			—
Net impairment (losses) recognized in earnings	$	(43	)	$	(37	)	$	(115	)	$	(238	)
Insurance premiums	$	482		$	538		$	979		$	1,083
Other revenue	664			581			1,993			1,475
Total non-interest revenues	$	7,648		$	7,479		$	15,812		$	15,926
Total revenues, net of interest expense	$	19,470		$	19,425		$	39,206		$	39,631
Provisions for credit losses and for benefits and claims
Provision for loan losses	$	1,515		$	1,579		$	3,270		$	3,372
Policyholder benefits and claims	181			182			378			390
Provision (release) for unfunded lending commitments	(48		)	(31		)	(85		)	(58		)
Total provisions for credit losses and for benefits and claims	$	1,648		$	1,730		$	3,563		$	3,704
Operating expenses (1)
Compensation and benefits	$	5,483		$	6,028		$	11,003		$	12,038
Premises and equipment	737			819			1,446			1,624
Technology/communication	1,656			1,619			3,256			3,149
Advertising and marketing	393			460			785			918
Other operating	2,659			6,595			5,322			9,941
Total operating expenses	$	10,928		$	15,521		$	21,812		$	27,670
Income from continuing operations before income taxes	$	6,894		$	2,174		$	13,831		$	8,257
Provision for income taxes	2,036			1,921			4,156			4,052
Income from continuing operations	$	4,858		$	253		$	9,675		$	4,205
Discontinued operations
Income (loss) from discontinued operations	$	9		$	(3	)	$	1		$	37
Provision for income taxes	3			19			—			22
Income (loss) from discontinued operations, net of taxes	$	6		$	(22	)	$	1		$	15
Net income before attribution of noncontrolling interests	$	4,864		$	231		$	9,676		$	4,220
Noncontrolling interests	18			50			60			95
Citigroup’s net income	$	4,846		$	181		$	9,616		$	4,125
Basic earnings per share(2)
Income from continuing operations	$	1.51		$	0.03		$	3.03		$	1.26
Income (loss) from discontinued operations, net of taxes	—			(0.01		)	—			—
Net income	$	1.52		$	0.03		$	3.03		$	1.26
Weighted average common shares outstanding	3,020.0			3,033.8			3,027.1			3,035.6

101

Diluted earnings per share(2)
Income from continuing operations	$	1.51	$	0.03		$	3.02	$	1.26
Income (loss) from discontinued operations, net of taxes	—		(0.01		)	—		—
Net income	$	1.51	$	0.03		$	3.02	$	1.26
Adjusted weighted average common shares outstanding	3,025.0		3,038.3			3,032.1		3,040.8

(1) Certain prior-period revenue and expense lines and totals were reclassified to conform to the current period’s presentation. See Note 3 to the Consolidated Financial Statements.

(2) Due to rounding, earnings per share on continuing operations and discontinued operations may not sum to earnings per share on net income.

The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited)                                         Citigroup Inc. and Subsidiaries

	Three Months Ended June 30,						Six Months Ended June 30,
In millions of dollars	2015			2014			2015			2014
Net income before attribution of noncontrolling interests	$	4,864		$	231		$	9,676		$	4,220
Add: Citigroup’s other comprehensive income (loss)
Net change in unrealized gains and losses on investment securities, net of taxes	$	(935	)	$	1,006		$	(344	)	$	1,434
Net change in cash flow hedges, net of taxes	92			120			178			238
Benefit plans liability adjustment, net of taxes (1)	578			(144		)	488			(177		)
Net change in foreign currency translation adjustment, net of taxes and hedges	(148		)	17			(2,210		)	(509		)
Citigroup’s total other comprehensive income (loss)	$	(413	)	$	999		$	(1,888	)	$	986
Total comprehensive income before attribution of noncontrolling interests	$	4,451		$	1,230		$	7,788		$	5,206
Less: Net income attributable to noncontrolling interests	18			50			60			95
Citigroup’s comprehensive income	$	4,433		$	1,180		$	7,728		$	5,111

(1)    Reflects adjustments based on the actuarial valuations of the Company’s significant pension and postretirement plans, including changes in the mortality assumptions at June 30, 2015, and amortization of amounts previously recognized in Accumulated other comprehensive income (loss). See Note 8 to the Consolidated Financial Statements.

The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.

103

CONSOLIDATED BALANCE SHEET                         Citigroup Inc. and Subsidiaries

	June 30,
	2015			December 31,
In millions of dollars	(Unaudited)			2014
Assets
Cash and due from banks (including segregated cash and other deposits)	$	23,413		$	32,108
Deposits with banks	130,685			128,089
Federal funds sold and securities borrowed or purchased under agreements to resell (including $132,067 and $144,191 as of June 30, 2015 and December 31, 2014, respectively, at fair value)	237,054			242,570
Brokerage receivables	43,921			28,419
Trading account assets (including $99,995 and $106,217 pledged to creditors at June 30, 2015 and December 31, 2014, respectively)	279,197			296,786
Investments:
Available for sale (including $11,169 and $13,808 pledged to creditors as of June 30, 2015 and December 31, 2014, respectively)	294,126			300,143
Held to maturity (including $2,690 and $2,974 pledged to creditors as of June 30, 2015 and December 31, 2014, respectively)	30,166			23,921
Non-marketable equity securities (including $2,288 and $2,758 at fair value as of June 30, 2015 and December 31, 2014 respectively)	7,829			9,379
Total investments	$	332,121		$	333,443
Loans:
Consumer (including $39 and $43 as of June 30, 2015 and December 31, 2014, respectively, at fair value)	342,349			369,970
Corporate (including $6,499 and $5,858 as of June 30, 2015 and December 31, 2014, respectively, at fair value)	289,769			274,665
Loans, net of unearned income	$	632,118		$	644,635
Allowance for loan losses	(14,075		)	(15,994		)
Total loans, net	$	618,043		$	628,641
Goodwill	23,012			23,592
Intangible assets (other than MSRs)	4,071			4,566
Mortgage servicing rights (MSRs)	1,924			1,845
Other assets (including $8,272 and $7,762 as of June 30, 2015 and December 31, 2014, respectively, at fair value)	135,929			122,122
Total assets	$	1,829,370		$	1,842,181

The following table presents certain assets of consolidated variable interest entities (VIEs), which are included in the Consolidated Balance Sheet above. The assets in the table below include those assets that can only be used to settle obligations of consolidated VIEs, presented on the following page, and are in excess of those obligations. Additionally, the assets in the table below include third-party assets of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation.

	June 30,
	2015			December 31,
In millions of dollars	(Unaudited)			2014
Assets of consolidated VIEs to be used to settle obligations of consolidated VIEs
Cash and due from banks	$	91		$	300
Trading account assets	1,096			671
Investments	6,645			8,014
Loans, net of unearned income
Consumer	58,372			66,383
Corporate	26,448			29,596
Loans, net of unearned income	$	84,820		$	95,979
Allowance for loan losses	(2,374		)	(2,793		)
Total loans, net	$	82,446		$	93,186
Other assets	6,043			619
Total assets of consolidated VIEs to be used to settle obligations of consolidated VIEs	$	96,321		$	102,790

Statement continues on the next page.

104

CONSOLIDATED BALANCE SHEETCitigroup Inc. and Subsidiaries

(Continued)

	June 30,
	2015			December 31,
In millions of dollars, except shares and per share amounts	(Unaudited)			2014
Liabilities
Non-interest-bearing deposits in U.S. offices	$	135,013		$	128,958
Interest-bearing deposits in U.S. offices (including $824 and $994 as of June 30, 2015 and December 31, 2014, respectively, at fair value)	268,947			284,978
Non-interest-bearing deposits in offices outside the U.S.	72,629			70,925
Interest-bearing deposits in offices outside the U.S. (including $565 and $690 as of June 30, 2015 and December 31, 2014, respectively, at fair value)	431,448			414,471
Total deposits	$	908,037		$	899,332
Federal funds purchased and securities loaned or sold under agreements to repurchase (including $38,735 and $36,725 as of June 30, 2015 and December 31, 2014, respectively, at fair value)	177,012			173,438
Brokerage payables	54,867			52,180
Trading account liabilities	136,295			139,036
Short-term borrowings (including $870 and $1,496 as of June 30, 2015 and December 31, 2014, respectively, at fair value)	25,907			58,335
Long-term debt (including $27,214 and $26,180 as of June 30, 2015 and December 31, 2014, respectively, at fair value)	211,845			223,080
Other liabilities (including $1,245 and $1,776 as of June 30, 2015 and December 31, 2014, respectively, at fair value)	94,582			85,084
Total liabilities	$	1,608,545		$	1,630,485
Stockholders’ equity
Preferred stock ($1.00 par value; authorized shares: 30 million), issued shares: 558,720 as of June 30, 2015 and 418,720 as of December 31, 2014, at aggregate liquidation value	$	13,968		$	10,468
Common stock ($0.01 par value; authorized shares: 6 billion), issued shares: 3,099,474,404 as of June 30, 2015 and 3,082,037,568 as of December 31, 2014	31			31
Additional paid-in capital	108,219			107,979
Retained earnings	126,954			117,852
Treasury stock, at cost: June 30, 2015—89,629,131 shares and December 31, 2014—58,119,993 shares	(4,628		)	(2,929		)
Accumulated other comprehensive income (loss)	(25,104		)	(23,216		)
Total Citigroup stockholders’ equity	$	219,440		$	210,185
Noncontrolling interest	1,385			1,511
Total equity	$	220,825		$	211,696
Total liabilities and equity	$	1,829,370		$	1,842,181

The following table presents certain liabilities of consolidated VIEs, which are included in the Consolidated Balance Sheet above. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts where creditors or beneficial interest holders have recourse to the general credit of Citigroup.

	June 30,
	2015		December 31,
In millions of dollars	(Unaudited)		2014
Liabilities of consolidated VIEs for which creditors or beneficial interest holders do not have recourse to the general credit of Citigroup
Short-term borrowings	$	12,928	$	20,254
Long-term debt	32,082		40,078
Other liabilities	5,294		901
Total liabilities of consolidated VIEs for which creditors or beneficial interest holders do not have recourse to the general credit of Citigroup	$	50,304	$	61,233

The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.

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CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited) Citigroup Inc. and Subsidiaries

	Six Months Ended June 30,
In millions of dollars, except shares in thousands	2015			2014
Preferred stock at aggregate liquidation value
Balance, beginning of year	$	10,468		$	6,738
Issuance of new preferred stock	3,500			2,230
Balance, end of period	$	13,968		$	8,968
Common stock and additional paid-in capital
Balance, beginning of year	$	108,010		$	107,224
Employee benefit plans	279			492
Preferred stock issuance expense	(14		)	(24		)
Other	(25		)	8
Balance, end of period	$	108,250		$	107,700
Retained earnings
Balance, beginning of year	$	117,852		$	111,168
Adjustment to opening balance, net of taxes (1)	—			$	(347	)
Adjusted balance, beginning of period	$	117,852		$	110,821
Citigroup’s net income	9,616			4,125
Common dividends (2)	(184		)	(60		)
Preferred dividends	(330		)	(224		)
Tax benefit	—			353
Balance, end of period	$	126,954		$	115,015
Treasury stock, at cost
Balance, beginning of year	$	(2,929	)	$	(1,658	)
Employee benefit plans (3)	151			(196		)
Treasury stock acquired (4)	(1,850		)	(666		)
Balance, end of period	$	(4,628	)	$	(2,520	)
Citigroup’s accumulated other comprehensive income (loss)
Balance, beginning of year	$	(23,216	)	$	(19,133	)
Citigroup’s total other comprehensive income (loss)	(1,888		)	986
Balance, end of period	$	(25,104	)	$	(18,147	)
Total Citigroup common stockholders’ equity	$	205,472		$	202,048
Total Citigroup stockholders’ equity	$	219,440		$	211,016
Noncontrolling interests
Balance, beginning of year	$	1,511		$	1,794
Transactions between Citigroup and the noncontrolling-interest shareholders	(114		)	(68		)
Net income attributable to noncontrolling-interest shareholders	60			95
Dividends paid to noncontrolling-interest shareholders	(10		)	(17		)
Other comprehensive income (loss) attributable to noncontrolling-interest shareholders	(61		)	(2		)
Other	(1		)	(65		)
Net change in noncontrolling interests	$	(126	)	$	(57	)
Balance, end of period	$	1,385		$	1,737
Total equity	$	220,825		$	212,753

(1) Citi adopted ASU 2014-01 Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Affordable Housing, in the first quarter of 2015 on a retrospective basis. This adjustment to opening Retained earnings represents the impact to periods prior to January 1, 2014 and is shown as an adjustment to the opening balance since the second quarter of 2014 is the earliest period disclosed in this Form 10-Q. See Note 1 to the Consolidated Financial Statements for additional information.

(2) Common dividends declared were $0.01 per share in the first quarter and $0.05in thesecond quarter of 2015 and $0.01 per share in the first and second quarter of 2014 .

(3) Includes treasury stock related to (i) certain activity on employee stock option program exercises where the employee delivers existing shares to cover the option exercise, or (ii) under Citi’s employee restricted or deferred stock programs where shares are withheld to satisfy tax requirements.

(4) For the six months ended June 30, 2015 and 2014, primarily consists of open market purchases under Citi’s Board of Directors-approved common stock repurchase program.

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The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.

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CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

Citigroup Inc. and Subsidiaries

	Six Months Ended June 30,
In millions of dollars	2015			2014
Cash flows from operating activities of continuing operations
Net income before attribution of noncontrolling interests	$	9,676		$	4,220
Net income attributable to noncontrolling interests	60			95
Citigroup’s net income	$	9,616		$	4,125
Income from discontinued operations, net of taxes	1			15
Income from continuing operations—excluding noncontrolling interests	$	9,615		$	4,110
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations
Depreciation and amortization	1,767			1,739
Provision for loan losses	3,270			3,372
Realized gains from sales of investments	(490		)	(212		)
Net impairment losses recognized in earnings	136			238
Change in trading account assets	17,589			(4,848		)
Change in trading account liabilities	(2,741		)	14,608
Change in brokerage receivables net of brokerage payables	(12,815		)	(7,574		)
Change in loans held-for-sale	(1,869		)	(1,854		)
Change in other assets	(1,382		)	(2,830		)
Change in other liabilities	3,575			14,833
Other, net	1,691			4,381
Total adjustments	$	8,731		$	21,853
Net cash provided by operating activities of continuing operations	$	18,346		$	25,963
Cash flows from investing activities of continuing operations
Change in deposits with banks	$	(2,911	)	$	15,188
Change in federal funds sold and securities borrowed or purchased under agreements to resell	5,516			6,684
Change in loans	(9,945		)	(12,743		)
Proceeds from sales and securitizations of loans	6,377			2,158
Purchases of investments	(140,945		)	(138,510		)
Proceeds from sales of investments	89,707			81,041
Proceeds from maturities of investments	44,732			44,670
Capital expenditures on premises and equipment and capitalized software	(1,471		)	(2,207		)
Proceeds from sales of premises and equipment, subsidiaries and affiliates, and repossessed assets	328			231
Net cash used in investing activities of continuing operations	$	(8,612	)	$	(3,488	)
Cash flows from financing activities of continuing operations
Dividends paid	$	(514	)	$	(284	)
Issuance of preferred stock	3,486			2,206
Treasury stock acquired	(1,850		)	(666		)
Stock tendered for payment of withholding taxes	(423		)	(504		)
Change in federal funds purchased and securities loaned or sold under agreements to repurchase	3,574			(19,600		)
Issuance of long-term debt	27,183			29,246
Payments and redemptions of long-term debt	(26,059		)	(24,966		)
Change in deposits	8,705			(2,548		)
Change in short-term borrowings	(32,428		)	100
Net cash used in financing activities of continuing operations	$	(18,326	)	$	(17,016	)
Effect of exchange rate changes on cash and cash equivalents	$	(103	)	$	(76	)
Change in cash and due from banks	$	(8,695	)	$	5,383
Statement continues on the next page.

108

Cash and due from banks at beginning of period	32,108			29,885
Cash and due from banks at end of period	$	23,413		$	35,268
Supplemental disclosure of cash flow information for continuing operations
Cash paid during the year for income taxes	$	2,863		$	3,086
Cash paid during the year for interest	4,928			5,834
Non-cash investing activities
Decrease in net loans associated with significant disposals reclassified to HFS	$	(8,874	)	$	—
Decrease in investments associated with significant disposals reclassified to HFS	(1,444		)	—
Decrease in goodwill and intangible assets associated with significant disposals reclassified to HFS	(213		)	—
Decrease in deposits with banks with significant disposals reclassified to HFS	(315		)	—
Transfers to loans HFS from loans	4,500			9,000
Transfers to OREO and other repossessed assets	158			142
Non-cash financing activities
Decrease in long-term debt associated with significant disposals reclassified to HFS	$	(5,923	)	$	—

The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.

109

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION AND ACCOUNTING CHANGES

Basis of Presentation

The accompanying unaudited Consolidated Financial Statements as of June 30, 2015 and for the three- and six-month periods ended June 30, 2015 and 2014 include the accounts of Citigroup Inc. (Citigroup) and its consolidated subsidiaries (collectively, the Company, Citi or Citigroup).

In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation have been reflected. The accompanying unaudited Consolidated Financial Statements should be read in conjunction with Citigroup’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the U.S. Securities and Exchange Commission (SEC) on February 25, 2015, including the historical audited consolidated financial statements of Citigroup reflecting the adoption of an accounting change (see “Accounting Changes” below) and certain realignments and reclassifications set forth in Citigroup’s Current Report on Form 8-K filed with the SEC on May 27, 2015 (2014 Annual Report on Form 10-K), and Citigroup’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 filed with the SEC on May 11, 2015 (First Quarter of 2015 Form 10-Q).

Certain financial information that is normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), but is not required for interim reporting purposes, has been condensed or omitted.

Management must make estimates and assumptions that affect the Consolidated Financial Statements and the related footnote disclosures. While management makes its best judgment, actual results could differ from those estimates. Current market conditions increase the risk and complexity of the judgments in these estimates.

Certain other reclassifications have been made to the prior-period’s financial statements and notes to conform to the current period’s presentation.

As noted above, the Notes to Consolidated Financial Statements are unaudited.

ACCOUNTING CHANGES

Accounting for Investments in Tax Credit Partnerships

In January 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-01, Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. Any transition adjustment is reflected as an adjustment to retained earnings in the earliest period presented (retrospective application).

The ASU is applicable to Citi’s portfolio of low income housing tax credit (LIHTC) partnership interests. The new standard widens the scope of investments eligible to elect to apply a new alternative method, the proportional amortization method, under which the cost of the investment is amortized to tax expense in proportion to the amount of

tax credits and other tax benefits received. Citi qualifies to elect the proportional amortization method under the ASU for its entire LIHTC portfolio. These investments were previously accounted for under the equity method, which resulted in losses (due to amortization of the investment) being recognized in Other revenue and tax credits and benefits being recognized in the Income tax expense line. In contrast, the proportional amortization method combines the amortization of the investment and receipt of the tax credits/benefits into one line, Income tax expense.

Citi adopted ASU 2014-01 in the first quarter of 2015.

The adoption of this ASU was applied retrospectively and cumulatively reduced Retained earnings by approximately $349 million, Other assets by approximately $178 million, and deferred tax assets by approximately $171 million.

Accounting for Repurchase-to-Maturity Transactions

In June 2014, the FASB issued ASU No. 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The ASU changes the accounting for repurchase-to-maturity transactions and linked repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements. The ASU also requires disclosures about transfers accounted for as sales in transactions that are economically similar to repurchase agreements (see Note 21 to the Consolidated Financial Statements) and about the types of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings (see Note 10 to the Consolidated Financial Statements). The ASU’s provisions became effective for Citi from the first quarter of 2015, with the exception of the collateral disclosures which are effective in the second quarter of 2015. The effect of adopting the ASU is required to be reflected as a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. Adoption of the ASU did not have a material effect on the Company’s financial statements.

Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure

In August 2014, the FASB issued ASU No. 2014-14, Receivables-Troubled Debt Restructuring by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure, which requires that a mortgage loan be derecognized and a separate other receivable be recognized upon foreclosure if the following conditions are met: (i) the loan has a government guarantee that is not separable from the loan before foreclosure; (ii) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and (iii) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable is measured based

110

on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor.

Citi early adopted the ASU on a modified retrospective basis in the fourth quarter of 2014, which resulted in reclassifying approximately $130 million of foreclosed assets from Other Real Estate Owned to a separate other receivable that is included in Other assets. Given the modified retrospective approach to adoption, prior periods have not been restated.

Disclosures for Investments in Certain Entities That Calculate Net Asset Value (NAV) per Share

In May 2015, the FASB issued ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent), which is intended to reduce diversity in practice related to the categorization of investments measured at NAV within the fair value hierarchy. The ASU removes the current requirement to categorize investments for which fair value is measured using the NAV per share practical expedient within the fair value hierarchy. Citi elected to early adopt the ASU in the second quarter of 2015. The adoption of the ASU was applied retrospectively and reduced Level 3 assets by $1.0 billion and $1.1 billion as of June 30, 2015 and December 31, 2014, respectively.

FUTURE APPLICATION OF ACCOUNTING STANDARDS

Revenue Recognition

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective on January 1, 2018. Early application is permitted for annual periods beginning after December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its financial statements.

Consolidation

In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which is intended to improve certain areas of consolidation guidance for legal entities such as limited partnerships, limited liability companies, and securitization structures. The ASU will reduce the number of consolidation models. The ASU will be effective on January 1, 2016. Early adoption is permitted, including adoption in an interim period. The Company is evaluating the effect that ASU 2015-02 will have on its Consolidated Financial Statements.

Debt Issuance Costs

In April 2015, the FASB issued ASU 2015-03, Interest— Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs, to conform the presentation of debt issuance costs to that of debt discounts and premiums. Thus, the ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The ASU will be effective for Citi on January 1, 2016 for both interim and annual periods and will be applied retrospectively to all periods presented. Early adoption is permitted for financial statements that have not been previously issued. The ASU is not expected to have a material effect on the Company.

Accounting for Financial Instruments-Credit Losses

In December 2012, the FASB issued a proposed ASU, Financial Instruments-Credit Losses. This proposed ASU, or exposure draft, was issued for public comment in order to allow stakeholders the opportunity to review the proposal and provide comments to the FASB and does not constitute accounting guidance until a final ASU is issued.

The exposure draft contains proposed guidance developed by the FASB with the goal of improving financial reporting about expected credit losses on loans, securities and other financial assets held by financial institutions and other organizations. The exposure draft proposes a new accounting model intended to require earlier recognition of credit losses, while also providing additional transparency about credit risk.

The FASB’s proposed model would utilize an “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to-maturity securities and other receivables at the time the financial asset is originated or acquired and adjusted each period for changes in expected credit losses. For available-for-sale securities where fair value is less than cost, credit-related impairment would be recognized in the allowance for credit losses and adjusted each period for changes in credit. This would replace the multiple existing impairment models in GAAP, which generally require that a loss be “incurred” before it is recognized.

The FASB’s proposed model represents a significant departure from existing GAAP, and may result in material changes to the Company’s accounting for financial instruments. The impact of the FASB’s final ASU on the Company’s financial statements will be assessed when it is issued. The exposure draft does not contain a proposed effective date; this would be included in the final ASU, when issued.

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2. DISCONTINUED OPERATIONS AND SIGNIFICANT DISPOSALS

Discontinued Operations

The following Discontinued operations are recorded within the Corporate/Other segment.

Sale of Brazil Credicard Business

Citi sold its non-Citibank-branded cards and consumer finance business in Brazil (Credicard) in 2013 and reported it as Discontinued operations. Residual costs and resolution of certain contingencies resulted in income from Discontinued operations, net of taxes, of $8 million and $3 million, for the three months endedJune 30, 2015 and 2014, respectively, and income from Discontinued operations, net of taxes, of $6 million and $56 million, for the six months endedJune 30, 2015 and 2014, respectively.

Sale of Certain Citi Capital Advisors Business

Citi sold its liquid strategies business within Citi Capital Advisors (CCA) pursuant to two separate transactions in 2013 and reported them as Discontinued operations. Citigroup retained a 24.9% passive equity interest in the management company (which is held in Citi’s Institutional Clients Group segment). Residual costs from the disposals resulted in no income or losses from Discontinued operations, net of taxes for the three months endedJune 30, 2015 and 2014, respectively and income from Discontinued operations, net of taxes, of $1 million and losses from Discontinued operations, net of taxes, of $2 million for the six months endedJune 30, 2015 and 2014, respectively.

Sale of Egg Banking plc Credit Card Business

Citi completed the sale of the Egg Banking plc (Egg) credit card business in 2011 and reported it as Discontinued operations. Residual costs from the disposal resulted in losses from Discontinued operations, net of taxes, of $2 million and $5 million for the three months endedJune 30, 2015 and 2014, respectively and losses from Discontinued operations, net of taxes, of $6 million and $19 million, for the six months endedJune 30, 2015 and 2014, respectively.

Audit of Citi German Consumer Tax Group

Citi completed the sale of its German retail banking operations in 2008 and has reported them as Discontinued operations. During 2014, residual costs associated with German retail banking operations resulted in a tax expense of $20 million.

Combined Results for Discontinued Operations

The following is summarized financial information for Credicard, CCA, Egg and previous Discontinued operations for which Citi continues to have minimal residual costs associated with the sales:

	Three Months Ended June 30,					Six Months Ended June 30,
In millions of dollars	2015		2014			2015		2014
Total revenues, net of interest expense	$	—	$	4		$	—	$	73
Income (loss) from discontinued operations	$	9	$	(3	)	$	1	$	37
Provision (benefit) for income taxes	3		19			—		22
Income (loss) from discontinued operations, net of taxes	$	6	$	(22	)	$	1	$	15

Cash flows for the Discontinued operations were not material for all periods presented.

Significant Disposals

The following sales were identified as significant disposals, including the assets and liabilities that were reclassified to HFS within Other assets and Other liabilities on the Consolidated Balance Sheet and the Income (loss) before taxes (benefits) related to each business.

Agreement to Sell OneMain Financial Business

On March 3, 2015, Citi entered into an agreement to sell its OneMain Financial business that is part of Citi Holdings. The sale, which is subject to regulatory approvals and other customary closing conditions, is expected to occur in the third quarter of 2015. Income before taxes is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
In millions of dollars	2015		2014		2015		2014
Income before taxes	$	168	$	226	$	346	$	487

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The following assets and liabilities of the OneMain Financial business were identified and reclassified to HFS within Other assets and Other liabilities on the Consolidated Balance Sheet at June 30, 2015:

In millions of dollars	June 30, 2015
Assets
Cash and deposits with banks	$	420
Investments	1,444
Loans (net of allowance of $684 million)	7,533
Intangible assets	152
Other assets	361
Total assets	$	9,910
Liabilities
Long-term debt	$	5,923
Other liabilities, due to/from subs	2,033
Other liabilities	1,453
Total liabilities	$	9,409

Agreement to Sell Japan Cards Business

On March 31, 2015, Citi entered into an agreement to sell its Japan cards business that is part of Citi Holdings effective January 1, 2015. The sale, which is subject to regulatory approvals and other customary closing conditions, is expected to occur by the fourth quarter of 2015. Income before taxes is as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
In millions of dollars	2015		2014			2015		2014
Income before taxes	$	10	$	(1	)	$	9	$	(1	)

The following assets and liabilities of the Japan cards business were identified and reclassified to HFS within Other assets and Other liabilities on the Consolidated Balance Sheet at June 30, 2015:

In millions of dollars	June 30, 2015
Assets
Cash and deposits with banks	$	16
Loans (net allowance of $23 million)	1,341
Goodwill	61
Other assets	73
Total assets	$	1,491
Liabilities
Other liabilities	$	455
Total liabilities	$	455

Agreement to Sell Japan Retail Banking Business

On December 25, 2014, Citi entered into an agreement to sell its Japan retail banking business that is part of Citi Holdings effective January 1, 2015. The sale, which is subject to regulatory approvals and other customary closing conditions, is expected to occur by the fourth quarter of 2015. Income before taxes is as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
In millions of dollars	2015	2014	2015