DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2013

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

2.     DISCONTINUED OPERATIONS

Sale of Brazil Credicard business

        On May 14, 2013, Citi entered into a definitive agreement to sell Credicard, its non-Citibank branded cards and consumer finance business in Brazil (Brazil Credicard), which is part of the Global Consumer Banking segment, for approximately $1.24 billion to Banco Itau Unibanco. The sale is expected to result in an after-tax gain of approximately $300 million upon closing (expected to occur by early 2014, subject to Brazilian regulatory approvals). Citi will retain its Citi-branded and Diners credit cards, along with certain affluent segments currently associated with Credicard, which will be re-branded as Citi.

        Brazil Credicard is reported as discontinued operations for the current and all historical periods.

        The following is a summary as of June 30, 2013 of the assets held for sale on the Consolidated Balance Sheet related to Brazil Credicard:

In millions of dollars	June 30, 2013
Assets
Deposits at interest with banks	$	84
Loans (net allowance of $358)		2,619
Goodwill and intangible assets		265
Other assets		330
Total assets	$	3,298

        Summarized financial information for Discontinued operations for the credit card operations related to Brazil Credicard follows:

	Three Months Ended June 30,					Six Months Ended June 30,
In millions of dollars	2013		2012			2013		2012
Total revenues, net of interest expense	$	251	$	255		$	515	$	540
Income from discontinued operations		55		5			107		31
Income taxes		19		(2	)		37		7
Income from discontinued operations, net of taxes	$	36	$	7		$	70	$	24

Sale of Certain Citi Capital Advisors Business

        During the third quarter of 2012, the Company executed definitive agreements to transition a carve-out of its liquid strategies business within Citi Capital Advisors (CCA), which is part of the Institutional Clients Group segment, to certain employees responsible for managing those operations. This transition will occur pursuant to two separate transactions, creating two separate management companies, with each such transaction accounted for as a sale. At the close of the first transaction in February 2013, Citigroup retained a 24.9% passive equity interest in the management company created as a result of the sale (which will continue to be held in Citi's Institutional Clients Group segment) and recorded a gain on sale of $56 million. The second transaction is expected to be completed in 2013.

        This sale is reported as discontinued operations for the second half of 2012 and going forward. Prior periods were not reclassified due to the immateriality of the impact in those periods.

        The following is a summary as of June 30, 2013 of the assets held for sale on the Consolidated Balance Sheet or sold related to CCA:

In millions of dollars	June 30, 2013
Assets
Deposits at interest with banks	$	4
Goodwill		2
Other assets		2
Total assets	$	8

        Summarized financial information for Discontinued operations for the operations related to CCA follows:

In millions of dollars	Three Months Ended June 30, 2013			Six Months Ended June 30, 2013
Total revenues, net of interest expense	$	7		$	65
Loss from discontinued operations		(3	)		(131	)
Gain on sale		—			56
Benefit for income taxes		(1	)		(23	)
Loss from discontinued operations, net of taxes	$	(2	)	$	(52	)

Sale of Egg Banking plc Credit Card Business

        On March 1, 2011, the Company announced that Egg Banking plc (Egg), an indirect subsidiary that was part of Citi Holdings, entered into a definitive agreement to sell its credit card business to Barclays PLC. The sale closed on April 28, 2011.

        This sale is reported as discontinued operations for 2011 and going forward; 2010 was not reclassified, due to the immateriality of the impact in that period. An after-tax gain on sale of $126 million was recognized upon closing. Egg operations had total assets and total liabilities of approximately $2.7 billion and $39 million, respectively, at the time of sale.

        Summarized financial information for Discontinued operations for the credit card operations related to Egg follows:

	Three Months Ended June 30,					Six Months Ended June 30,
In millions of dollars	2013			2012		2013			2012
Total revenues, net of interest expense	$	—		$	—	$	—		$	1
Loss from discontinued operations		(1	)		—		(28	)		(3	)
Loss on sale		—			—		—			(1	)
Benefit for income taxes		—			—		(10	)		(1	)
Loss from discontinued operations, net of taxes	$	(1	)	$	—	$	(18	)	$	(3	)

Combined Results for Discontinued Operations

        The following is summarized financial information for Brazil 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	2013		2012			2013			2012
Total revenues, net of interest expense	$	258	$	255		$	580		$	541
Income from discontinued operations		51		5			(52	)		28
Gain (loss) on sale		—		—			56			(1	)
Provision for income taxes (benefits)		21		(2	)		7			8
Income (loss) from discontinued operations, net of taxes	$	30	$	7		$	(3	)	$	19