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INVESTMENTS
 9 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS
For additional information regarding Citi’s investment portfolios, including evaluating investments for impairment, see Note 14 to the Consolidated Financial Statements
in Citi’s 2023 Form 10-K.




The following table presents Citi’s investments by category:

In millions of dollarsSeptember 30,
2024		December 31, 2023
Debt securities available-for-sale (AFS)$234,444 $256,936 
Debt securities held-to-maturity (HTM)(1)
248,274 254,247 
Marketable equity securities carried at fair value(2)
207 258 
Non-marketable equity securities carried at fair value(2)(5)
648 508 
Non-marketable equity securities measured using the measurement alternative(3)
1,762 1,639 
Non-marketable equity securities carried at cost(4)
5,336 5,497 
Total investments(6)
$490,671 $519,085 

(1)Carried at adjusted amortized cost basis, net of any ACL.
(2)Unrealized gains and losses are recognized in earnings.
(3)Impairment losses and adjustments to the carrying value as a result of observable price changes are recognized in earnings. See “Non-Marketable Equity Securities Not Carried at Fair Value” below.
(4)    Represents shares issued by the Federal Reserve Bank, Federal Home Loan Banks and certain exchanges of which Citigroup is a member.
(5)    Includes $25 million and $25 million of investments in funds for which the fair values are estimated using the net asset value of the Company’s ownership interest in the funds at September 30, 2024 and December 31, 2023, respectively.
(6)    Not included in the balances above is approximately $2 billion of accrued interest receivable at September 30, 2024 and December 31, 2023, which is included in Other assets on the Consolidated Balance Sheet. The Company does not recognize an allowance for credit losses on accrued interest receivable for AFS and HTM debt securities, consistent with its non-accrual policy, which results in timely write-off of accrued interest. The Company did not reverse through interest income any accrued interest receivables for the quarters ended September 30, 2024 and 2023.

The following table presents interest and dividend income on investments:

Three Months Ended September 30,Nine Months Ended September 30,
In millions of dollars2024202320242023
Taxable interest$4,513 $4,547 $13,841 $12,831 
Interest exempt from U.S. federal income tax78 83 239 252 
Dividend income92 89 273 231 
Total interest and dividend income on investments$4,683 $4,719 $14,353 $13,314 


The following table presents realized gains and losses on the sales of investments, which exclude impairment losses:

Three Months Ended September 30,Nine Months Ended September 30,
In millions of dollars2024202320242023
Gross realized investment gains$108 $83 $394 $262 
Gross realized investment losses(36)(53)(184)(111)
Net realized gains on sales of investments$72 $30 $210 $151 
Debt Securities Available-for-Sale
The amortized cost and fair value of AFS debt securities were as follows:

 September 30, 2024December 31, 2023
In millions of dollarsAmortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Allowance for credit lossesFair
value		Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Allowance for credit lossesFair
value
Debt securities AFS        
Mortgage-backed securities(1)
        
U.S. government-sponsored agency guaranteed(2)(3)
$32,244 $211 $578 $— $31,877 $30,279 $170 $734 $— $29,715 
Residential628 — 3 — 625 426 — 3 — 423 
Commercial1 — — — 1 1 — — — 1 
Total mortgage-backed securities$32,873 $211 $581 $— $32,503 $30,706 $170 $737 $— $30,139 
U.S. Treasury and federal agency securities     
U.S. Treasury$60,069 $60 $585 $— $59,544 $81,684 $59 $1,382 $— $80,361 
Total U.S. Treasury and federal agency securities$60,069 $60 $585 $— $59,544 $81,684 $59 $1,382 $— $80,361 
State and municipal$1,956 $9 $78 $— $1,887 $2,204 $18 $91 $— $2,131 
Foreign government129,843 629 832 — 129,640 132,045 528 1,375 — 131,198 
Corporate5,789 32 131 8 5,682 5,610 18 208 8 5,412 
Asset-backed securities(1)
823 15 — — 838 921 17 — — 938 
Other debt securities4,350 2 2 — 4,350 6,754 4 1 — 6,757 
Total debt securities AFS$235,703 $958 $2,209 $8 $234,444 $259,924 $814 $3,794 $8 $256,936 

(1)The Company invests in mortgage- and asset-backed securities, which are typically issued by VIEs through securitization transactions. The Company’s maximum exposure to loss from these VIEs is equal to the carrying amount of the securities, which is reflected in the table above. See Note 21 for mortgage- and asset-backed securitizations in which the Company has other involvement.
(2)In January 2023, Citi adopted ASU 2022-01. Upon adoption, Citi transferred $3.3 billion of mortgage-backed securities from HTM classification to AFS classification as allowed under the ASU. At the time of transfer, the securities were in an unrealized gain position of $0.1 billion, which was recorded in AOCI upon transfer. See Note 1 to the Consolidated Financial Statements in Citi’s 2023 Form 10-K.
(3)Amortized cost includes unallocated portfolio layer cumulative basis adjustments of $0.3 billion as of September 30, 2024. Gross unrealized gains and gross unrealized (losses) on mortgage-backed securities excluding the effect of unallocated portfolio layer hedges cumulative basis adjustments were $0.4 billion and $(0.5) billion, respectively, as of September 30, 2024.
The following table presents the fair value of AFS debt securities that have been in an unrealized loss position:

 Less than 12 months12 months or longerTotal
In millions of dollarsFair
value		Gross
unrealized
losses		Fair
value		Gross
unrealized
losses		Fair
value		Gross
unrealized
losses
September 30, 2024      
Debt securities AFS      
Mortgage-backed securities      
U.S. government-sponsored agency guaranteed$11,165 $82 $9,121 $496 $20,286 $578 
Residential373 1 242 2 615 3 
Total mortgage-backed securities$11,538 $83 $9,363 $498 $20,901 $581 
U.S. Treasury and federal agency securities    
U.S. Treasury$11,006 $66 $34,798 $519 $45,804 $585 
Total U.S. Treasury and federal agency securities$11,006 $66 $34,798 $519 $45,804 $585 
State and municipal$692 $41 $561 $37 $1,253 $78 
Foreign government21,201 230 21,560 602 42,761 832 
Corporate1,965 50 1,599 81 3,564 131 
Asset-backed securities2 — — — 2 — 
Other debt securities1,204 1 561 1 1,765 2 
Total debt securities AFS$47,608 $471 $68,442 $1,738 $116,050 $2,209 
December 31, 2023      
Debt securities AFS      
Mortgage-backed securities      
U.S. government-sponsored agency guaranteed$8,602 $86 $9,734 $648 $18,336 $734 
Residential352 1 34 2 386 3 
Total mortgage-backed securities$8,954 $87 $9,768 $650 $18,722 $737 
U.S. Treasury and federal agency securities     
U.S. Treasury$11,851 $113 $57,669 $1,269 $69,520 $1,382 
Total U.S. Treasury and federal agency securities$11,851 $113 $57,669 $1,269 $69,520 $1,382 
State and municipal$906 $17 $324 $74 $1,230 $91 
Foreign government42,250 540 29,176 835 71,426 1,375 
Corporate2,319 103 1,619 105 3,938 208 
Asset-backed securities154 — 16 — 170 — 
Other debt securities1,864 1 228 — 2,092 1 
Total debt securities AFS$68,298 $861 $98,800 $2,933 $167,098 $3,794 
The following table presents the amortized cost and fair value of AFS debt securities by contractual maturity dates:

 September 30, 2024
In millions of dollarsAmortized costFair value
Mortgage-backed securities(1)
  
Due within 1 year$19 $19 
After 1 but within 5 years871 863 
After 5 but within 10 years567 554 
After 10 years31,117 31,067 
Total(2)
$32,574 $32,503 
U.S. Treasury and federal agency securities 
Due within 1 year$37,761 $37,448 
After 1 but within 5 years22,105 21,914 
After 5 but within 10 years203 182 
After 10 years— — 
Total$60,069 $59,544 
State and municipal  
Due within 1 year$12 $12 
After 1 but within 5 years132 127 
After 5 but within 10 years478 467 
After 10 years1,334 1,281 
Total$1,956 $1,887 
Foreign government  
Due within 1 year$56,098 $56,077 
After 1 but within 5 years68,476 68,368 
After 5 but within 10 years4,676 4,662 
After 10 years593 533 
Total$129,843 $129,640 
All other(3)
 
Due within 1 year$5,602 $5,593 
After 1 but within 5 years4,465 4,402 
After 5 but within 10 years843 846 
After 10 years52 29 
Total$10,962 $10,870 
Total debt securities AFS(2)
$235,404 $234,444 

(1)Includes mortgage-backed securities of U.S. government-sponsored agencies. The Company invests in mortgage- and asset-backed securities, which are typically issued by VIEs through securitization transactions. See Note 21 for additional information about mortgage- and asset-backed securitizations in which the Company has other involvement.
(2)Amortized cost excludes unallocated portfolio layer cumulative basis adjustments of $0.3 billion as of September 30, 2024.
(3)Includes corporate, asset-backed and other debt securities.
Debt Securities Held-to-Maturity
The carrying value and fair value of debt securities HTM were as follows:

In millions of dollars
Amortized
cost, net(1)
Gross
unrealized
gains		Gross
unrealized
losses		Fair
value
September 30, 2024    
Debt securities HTM    
Mortgage-backed securities(2)
U.S. government-sponsored agency guaranteed(3)
$74,315 $9 $7,113 $67,211 
Non-U.S. residential139 1 — 140 
Commercial1,142 5 110 1,037 
Total mortgage-backed securities$75,596 $15 $7,223 $68,388 
U.S. Treasury securities$131,350 $— $6,371 $124,979 
State and municipal8,958 67 457 8,568 
Foreign government1,506 11 7 1,510 
Asset-backed securities(2)
30,864 53 52 30,865 
Total debt securities HTM, net$248,274 $146 $14,110 $234,310 
December 31, 2023    
Debt securities HTM   
Mortgage-backed securities(2)
    
U.S. government-sponsored agency guaranteed$79,689 $7 $8,603 $71,093 
Non-U.S. residential198 — — 198 
Commercial1,146 2 156 992 
Total mortgage-backed securities$81,033 $9 $8,759 $72,283 
U.S. Treasury securities$131,776 $— $9,908 $121,868 
State and municipal9,182 73 477 8,778 
Foreign government2,210 — 58 2,152 
Asset-backed securities(2)
30,046 9 135 29,920 
Total debt securities HTM, net$254,247 $91 $19,337 $235,001 

(1)Amortized cost is reported net of ACL of $141 million and $95 million at September 30, 2024 and December 31, 2023, respectively.
(2)The Company invests in mortgage- and asset-backed securities. These securitizations are generally considered VIEs. The Company’s maximum exposure to loss from these VIEs is equal to the carrying amount of the securities, which is reflected in the table above. See Note 21 for mortgage- and asset-backed securitizations in which the Company has other involvement.
(3)In January 2023, Citi adopted ASU 2022-01. Upon adoption, Citi transferred $3.3 billion (amortized cost) of mortgage-backed securities from HTM classification to AFS classification as allowed under the ASU. At the time of transfer, the securities were in an unrealized gain position of $0.1 billion, which was recorded in AOCI upon transfer. See Note 1 to the Consolidated Financial Statements in Citi’s 2023 Form 10-K.
The following table presents the carrying value and fair value of HTM debt securities by contractual maturity dates:

 September 30, 2024
In millions of dollars
Amortized cost(1)
Fair value
Mortgage-backed securities  
Due within 1 year$13 $13 
After 1 but within 5 years1,231 1,190 
After 5 but within 10 years785 750 
After 10 years73,567 66,435 
Total$75,596 $68,388 
U.S. Treasury securities
Due within 1 year$38,577 $38,023 
After 1 but within 5 years92,773 86,956 
After 5 but within 10 years— — 
After 10 years— — 
Total$131,350 $124,979 
State and municipal  
Due within 1 year$33 $33 
After 1 but within 5 years159 161 
After 5 but within 10 years1,724 1,666 
After 10 years7,042 6,708 
Total$8,958 $8,568 
Foreign government  
Due within 1 year$811 $814 
After 1 but within 5 years695 696 
After 5 but within 10 years— — 
After 10 years— — 
Total$1,506 $1,510 
All other(2)
Due within 1 year$— $— 
After 1 but within 5 years— — 
After 5 but within 10 years10,779 10,788 
After 10 years20,085 20,077 
Total$30,864 $30,865 
Total debt securities HTM$248,274 $234,310 

(1)Amortized cost is reported net of ACL of $141 million at September 30, 2024.
(2)Includes corporate and asset-backed securities.


HTM Debt Securities Delinquency and Non-Accrual Details
Citi did not have any HTM debt securities that were delinquent or on non-accrual status at September 30, 2024 and December 31, 2023.

There were no purchased credit-deteriorated HTM debt securities held by the Company as of September 30, 2024 and December 31, 2023.

Evaluating Investments for Impairment—AFS Debt Securities

Overview
The Company conducts periodic reviews of all AFS debt securities with unrealized losses to evaluate whether the impairment resulted from expected credit losses or from other factors and to evaluate the Company’s intent to sell such securities.
For more information on evaluating investments for impairment, see Note 14 to the Consolidated Financial Statements in Citi’s 2023 Form 10-K.











Recognition and Measurement of Impairment
The following table presents total impairment on AFS investments recognized in earnings:

Three Months Ended September 30,Nine Months Ended September 30,
In millions of dollars2024202320242023
Impairment losses recognized in earnings for debt securities that the Company intends to sell, would more-likely-than-not be required to sell or will be subject to an issuer call deemed probable of exercise$13 $43 $36 $137 


Allowance for Credit Losses on AFS Debt Securities
The allowance for credit losses on AFS debt securities held that the Company does not intend to sell nor will likely be required to sell was $8 million and $8 million as of September 30, 2024 and December 31, 2023, respectively.


Non-Marketable Equity Securities Not Carried at
Fair Value
Non-marketable equity securities are required to be measured at fair value with changes in fair value recognized in earnings unless (i) the measurement alternative is elected or (ii) the investment represents Federal Reserve Bank and Federal Home Loan Bank stock or certain exchange seats that continue to be carried at cost.
The election to measure a non-marketable equity security using the measurement alternative is made on an instrument-by-instrument basis. Under the measurement alternative, an equity security is carried at cost plus or minus changes resulting from observable prices in orderly transactions for the identical or a similar investment of the same issuer. The carrying value of the equity security is adjusted to fair value on the date of an observed transaction. Fair value may differ from the observed transaction price due to a number of factors, including marketability adjustments and differences in rights and obligations when the observed transaction is not for the identical investment held by Citi.
Equity securities under the measurement alternative are also assessed for impairment. On a quarterly basis, management qualitatively assesses whether each equity security under the measurement alternative is impaired. For details on impairment indicators that are considered, see Note 14 to the Consolidated Financial Statements in Citi’s 2023 Form 10-K.
When the qualitative assessment indicates that the equity security is impaired, its fair value is determined. If the fair value of the investment is less than its carrying value, the investment is written down to fair value through earnings.
Below is the carrying value of non-marketable equity securities measured using the measurement alternative at September 30, 2024 and December 31, 2023:

In millions of dollarsSeptember 30, 2024December 31, 2023
Measurement alternative:
Carrying value$1,762 $1,639 

Below are amounts recognized in earnings and life-to-date amounts for non-marketable equity securities measured using the measurement alternative:

Three Months Ended September 30,Nine Months Ended September 30,
In millions of dollars2024202320242023
Measurement alternative(1):
Impairment losses$32 $27 $56 $90 
Downward changes for observable prices1 4 2 24 
Upward changes for observable prices25 17 77 49 

(1)     See Note 23 for additional information on these nonrecurring fair value measurements.

Life-to-date amounts on securities still held
In millions of dollarsSeptember 30, 2024
Measurement alternative:
Impairment losses$385 
Downward changes for observable prices36 
Upward changes for observable prices1,027 

A similar impairment analysis is performed for non-marketable equity securities carried at cost. For the three months ended September 30, 2024 and 2023, there was no impairment loss recognized in earnings for non-marketable equity securities carried at cost.