THE COMPANY

Citigroup Inc. (Citigroup and, together with its subsidiaries, the Company) is a diversified global financial services holding company. Our businesses provide a broad range of financial services to consumer and corporate customers. Citigroup has more than 200 million customer accounts and does business in more than 100 countries. Citigroup was incorporated in 1988 under the laws of the State of Delaware.

The Company is a bank holding company within the meaning of the U.S. Bank Holding Company Act of 1956 registered with, and subject to examination by, the Board of Governors of the Federal Reserve System (FRB). Some of the Company’s subsidiaries are subject to supervision and examination by their respective federal, state and foreign authorities.

This quarterly report on Form 10-Q should be read in conjunction with Citigroup’s 2006 Annual Report on Form 10-K. Additional financial, statistical, and business-related information, as well as business and segment trends, is included in a Financial Supplement that was filed as Exhibit 99.2 to the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission (SEC) on July 20, 2007.

The principal executive offices of the Company are located at 399 Park Avenue, New York, New York 10043. The telephone number is 212 559 1000. Additional information about Citigroup is available on the Company’s Web site at www.citigroup.com. Citigroup’s annual report on Form 10-K, its quarterly reports on Form 10-Q, its current reports on Form 8-K, and all amendments to these reports are available free of charge through the Company’s web site by clicking on the “Investor Relations” page and selecting “SEC Filings.” The SEC’s web site contains reports, proxy and information statements, and other information regarding the Company at www.sec.gov.

Citigroup is managed along the following segment and product lines:

CITIGROUP SEGMENTS AND PRODUCTS

Global
Consumer
Group

Markets &
Banking

Global
Wealth
Management

Alternative
Investments

Corporate /
Other

· Securities and Banking

- Investment banking

- Debt and equity markets

- Lending

· Transaction Services

- Cash management

- Trade services

- Custody and fund services

- Clearing services

- Agency/trust services

· Smith Barney

- Advisory

- Financial planning

- Brokerage

· Private Bank

- Wealth management services

· Citigroup Investment Research

- Equity and fixed income research

- Private equity

- Hedge funds

- Real estate

- Structured products

- Managed futures

- Treasury

- Operations and technology

- Corporate expenses

- Discontinued operations

U.S

· Cards

- MasterCard, VISA, Diners Club, private label and Amex

· Consumer Lending

- Real estate lending

- Student loans

- Auto loans

· Retail Distribution

- Citibank branches

- CitiFinancial branches

- Primerica Financial Services

· Commercial Business

- Small and middle market commercial banking

International

· Cards

- MasterCard, VISA,Diners Club and private label

· Consumer Finance

- Real estate lending

- Personal loans

- Auto loans

· Retail Banking

- Retail bank branches

- Small and middle market commercial banking

- Investment services

- Retirement services

- Real estate lending

- Personal loans

- Sales finance

The following are the six regions in which Citigroup operates. The regional results are fully reflected in the product results.

CITIGROUP REGIONS

United States (1)
(U.S.)

Mexico

Europe,
Middle East &
Africa
(EMEA)

Japan

Asia
(excl. Japan)

Latin America

(1) Disclosure includes Canada and Puerto Rico.

CITIGROUP INC. AND SUBSIDIARIES

SUMMARY OF SELECTED FINANCIAL DATA

*In millions of dollars,*	Three Months Ended June 30,						%		Six Months Ended June 30,						%
*except per share amounts*	2007			2006			Change		2007			2006			Change
Net interest revenue	$	11,426		$	9,855		16	%	$	21,996		$	19,621		12	%
Non-interest revenue	15,204			12,327			23		30,093			24,744			22
Revenues, net of interest expense	$	26,630		$	22,182		20	%	$	52,089		$	44,365		17	%
Restructuring expense	63			—			—		1,440			—			—
Other operating expenses	14,792			12,769			16		28,986			26,127			11
Provisions for credit losses and for benefits and claims	2,717			1,817			50		5,684			3,490			63
Income from continuing operations before taxes and minority interest	$	9,058		$	7,596		19	%	$	15,979		$	14,748		8	%
Income taxes	2,709			2,303			18		4,571			3,840			19
Minority interest, net of taxes	123			31			NM		170			91			87
Income from continuing operations	$	6,226		$	5,262		18	%	$	11,238		$	10,817		4	%
Income from discontinued operations, net of taxes(1)	—			3			(100	)	—			87			(100	)
Net Income	$	6,226		$	5,265		18	%	$	11,238		$	10,904		3	%
Earnings per share
Basic:
Income from continuing operations	$	1.27		$	1.07		19	%	$	2.29		$	2.20		4	%
Net income	1.27			1.07			19		2.29			2.21			4
Diluted:
Income from continuing operations	1.24			1.05			18		2.25			2.16			4
Net income	1.24			1.05			18		2.25			2.17			4
Dividends declared per common share	$	0.54		$	0.49		10		$	1.08		$	0.98		10
At June 30:
Total assets	$	2,220,866		$	1,626,551		37	%
Total deposits	771,761			645,805			20
Long-term debt	340,077			239,557			42
Mandatorily redeemable securities of subsidiary trusts	10,095			6,572			54
Common stockholders’ equity	127,154			114,428			11
Total stockholders’ equity	127,754			115,428			11
Ratios:
Return on common stockholders’ equity(2)	20.1		%	18.6		%			18.6		%	19.5		%
Return on risk capital(3)	35		%	38		%			33		%	39		%
Return on invested capital(3)	20		%	19		%			19		%	20		%
Tier 1 Capital	7.91		%	8.51		%
Total Capital	11.23			11.68
Leverage(4)	4.37			5.19
Common stockholders’ equity to assets	5.73		%	7.04		%
Dividend payout ratio(5)	43.5		%	46.7		%			48.0		%	45.2		%
Ratio of earnings to fixed charges and preferred stock dividends	1.47		x	1.55x					1.43		x	1.56		x

(1) Discontinued operations relates to residual items from the Company’s sale of Travelers Life & Annuity, which closed during the 2005 third quarter, and the Company’s sale of substantially all of its Asset Management Business, which closed during the 2005 fourth quarter. See Note 2 on page 53.

(2) The return on average common stockholders’ equity is calculated using net income minus preferred stock dividends.

(3) Risk capital is a measure of risk levels and the trade-off of risk and return. It is defined as the amount of capital required to absorb potential unexpected economic losses resulting from extremely severe events over a one-year time period. Return on risk capital is calculated as annualized income from continuing operations divided by average risk capital. Invested capital is defined as risk capital plus goodwill and intangible assets excluding mortgage servicing rights (which are a component of risk capital). Return on invested capital is calculated using income adjusted to exclude a net internal charge Citigroup levies on the goodwill and intangible assets of each business offset by each business’ share of the rebate of the goodwill and intangible asset charge. Return on risk capital and return on invested capital are non-GAAP performance measures; because they are measures of risk with no basis in GAAP, there is no comparable GAAP measure to which they can be reconciled. Management uses return on risk capital to assess businesses’ operational performance and to allocate Citigroup’s balance sheet and risk capital capacity. Return on invested capital is used to assess returns on potential acquisitions and to compare long-term performance of businesses with differing proportions of organic and acquired growth. See page 24 for a further discussion of risk capital.

(4) Tier 1 Capital divided by adjusted average assets.

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

NM Not meaningful

MANAGEMENT’S DISCUSSION AND ANALYSIS

SECOND QUARTER 2007

MANAGEMENT SUMMARY

Income from continuing operations rose 18% to $6.226 billion and was the highest ever recorded by the Company. Diluted EPS from continuing operations was also up 18%.

Revenues were a record $26.6 billion, up 20% from a year ago, led by Markets & Banking, up 33%. Our international operations recorded revenue growth of 34% in the quarter, with International Consumer up 16%, International Markets & Banking up 50%, and International Global Wealth Management more than doubling. U.S. Consumer revenues grew 3%, while Alternative Investments revenues grew 77%. Acquisitions represented approximately 4% of the revenue growth.

Customer volume growth was strong, with average loans up 16%, average deposits up 20%, and average interest-earning assets up 32%. International Cards purchase sales were up 31%, while U.S. Cards sales were up 6%. In Global Wealth Management, client assets under fee-based management were up 40% from year-ago levels, and client assets in Alternative Investments grew 55%. Branch activity included the opening or acquisition of 160 new branches during the quarter (136 internationally and 24 in the U.S.).

Ten international acquisitions since October of 2006 have been announced, consistent with our efforts to drive growth through a balance of organic investment and targeted acquisitions, and to expand our international franchise. We increased our ownership of Nikko Cordial Corporation to 68% during the second quarter of 2007. Nikko Cordial financial results are now consolidated in Citigroup’s consolidated financial statements.

International businesses contributed 49% of the Company’s revenue in the second quarter of 2007 and 50% of income, up from 43% and 43%, respectively, a year ago. Income and revenue were diversified by segment, product and region.

Net interest revenue increased 16% from last year reflecting volume increases across all products. Net interest margin in the second quarter of 2007 was 2.40%, down 33 basis points from the second quarter of 2006, as lower funding costs were offset by growth in lower-yielding assets in our trading businesses and assets from the Nikko acquisition (see discussion of net interest margin on page 30).

Operating expenses increased 16% from the second quarter of 2006 driven by increased business volumes and acquisitions (which contributed 4%). Expense growth was partially offset by savings from our Structural Expense Initiatives and the release of $300 million of litigation reserves reflecting our continued progress in favorably resolving WorldCom/Research Litigation matters. The relationship between revenue growth and expense growth continued to improve during the quarter with positive operating leverage of 4%.

Credit costs increased $934 million or 59%, primarily driven by an increase in net credit losses of $259 million and a net charge of $465 million to increase loan loss reserves. The $465 million net charge compares to a net reserve release of $210 million in the prior-year period. The build in U.S. Consumer was primarily due to increased reserves to reflect: higher delinquencies in second mortgages in U.S. ConsumerLending, a change in estimate of loan losses inherent in the U.S. Cards portfolio, and portfolio growth. The increase in International Consumer primarily reflected portfolio growth, an increase in past due accounts and portfolio seasoning in Mexico cards, higher net credit losses in Japan consumer finance, and the impact of recent acquisitions. The Global Consumer loss rate was 1.56%, an 8 basis-point increase from the second quarter of 2006. Corporate cash-basis loans declined 25% from year-ago levels to $599 million.

The effective tax rate was 29.9% in the second quarter of 2007, reflecting $96 million in tax benefits due to the initial application under APB 23 relating to certain foreign subsidiaries’ ability to indefinitely reinvest their earnings abroad. The effective tax rate in the second quarter of 2006 was 30.3%

Our stockholders’ equity and trust preferred securities grew to $137.8 billion at June 30, 2007. Stockholders’ equity increased by $5.7 billion during the quarter to $127.8 billion. We distributed $2.7 billion in dividends to shareholders. Return on common equity was 20.1% for the quarter. Citigroup maintained its “well-capitalized” position with a Tier 1 Capital Ratio of 7.91% at June 30, 2007.

We made good progress on our 2007 priorities: growing U.S. consumer, reweighting our business toward International Consumer, Markets & Banking and Global Wealth Management, expense management, and credit management. We expect that operating expenses, credit costs and income taxes in the third quarter of 2007 will have challenging comparisons to the third quarter of 2006. The challenging comparison is due to an unusually low level of operating expenses and certain tax benefits recorded in the third quarter of 2006, as well as the expectation that the consumer credit environment will continue to deteriorate in the second half of 2007 causing higher credit costs.

So far in the third quarter of 2007, we have continued to experience an increased level of delinquencies in our consumer mortgage portfolio, and some fixed income securities have experienced meaningful price deterioration due to a widening of credit spreads. This credit spread widening has negatively affected the valuation of certain fixed income securities that the Company holds and may affect the sale of certain debt financing commitments that the Company has with clients. See additional discussion on pages 18, 19 and 26.

Certain of the statements above are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. See “Forward-Looking Statements” on page 44.

EVENTS IN 2007 AND 2006

Certain of the following statements are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. See “Forward-Looking Statements” on page 44. Additional information regarding “Events in 2007 and 2006” is available in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2007 and Annual Report on Form 10-K for the year ended December 31, 2006.

Nikko Cordial

On May 9, 2007, Citigroup completed its successful tender offer to become the majority shareholder of Nikko Cordial Corporation in Japan. Approximately 56% of Nikko’s shares were acquired in the tender offer for a total cost of approximately $7.7 billion, bringing Citigroup’s aggregate ownership stake in Nikko to approximately 61%. Citigroup later acquired additional Nikko shares to bring its aggregate ownership stake in Nikko to approximately 68% at June 30, 2007. At June 30, 2007, Citigroup consolidated Nikko Cordial financial results including the appropriate Minority Interest. Results for Nikko are included from May 9, 2007 forward.

Credit Reserves

During the second quarter of 2007, the Company recorded a net build of $465 million to its credit reserves, consisting of a net build of $491 million in Global Consumer and a net release/utilization of $26 million in Markets & Banking.

The build of $491 million in Global Consumer was primarily due to increased reserves to reflect: increased delinquencies in second mortgages in U.S. Consumer Lending; a change in estimate of loan losses inherent in the U.S. Cards portfolio; an increase in past due accounts and portfolio seasoning in Mexico cards; the impact of recent acquisitions; and overall growth in the portfolio.

The net build to its credit reserves in the second quarter of 2007 compares to the second quarter of 2006 net release/ utilization of $210 million, which consisted of a net release/ utilization of $328 million in Global Consumer and Global Wealth Management, and a net build of $118 million in Markets & Banking.

Acquisition of Grupo Cuscatlan

On May 11, 2007, Citigroup completed the acquisition of the subsidiaries of Grupo Cuscatlan for $1.51 billion ($755 million in cash and 14.2 million Citigroup shares) from Corporacion UBC Internacional S.A. Grupo Cuscatlan is one of the leading financial groups in Central America, with assets of $5.4 billion, loans of $3.5 billion, and deposits of $3.4 billion. Grupo Cuscatlan has operations in El Salvador, Guatemala, Costa Rica, Honduras and Panamá. The results of Grupo Cuscatlan are included from May 11, 2007 forward and are recorded in International Retail Banking.

Acquisition of Egg

On May 1, 2007, Citigroup completed its acquisition of Egg Banking plc (Egg), the world’s largest pure online bank and one of the U.K.’s leading online financial services providers, from Prudential PLC for approximately $1.15 billion. Egg has more than three million customers and offers various financial products and services including online payment and account aggregation services, credit cards, personal loans, savings accounts, mortgages, insurance and investments.

Acquisition of Bisys

On August 1, 2007, the Company completed its acquisition of Bisys Group, Inc. (Bisys) for $1.44 billion in cash. In addition, Bisys’ shareholders will receive $18.2 million in the form of a special dividend paid by Bisys. Citigroup completed the sale of the Retirement and Insurance Services Divisions of Bisys to affiliates of J.C. Flowers & Co. LLC, making the net cost of the transaction to Citigroup approximately $800 million. Citigroup will retain the Fund Services and Alternative Investment services businesses of Bisys which provides administrative services for hedge funds, mutual funds and private equity funds. Bisys will be included within Citigroup’s Transaction Services business.

Acquisition of Old Lane Partners, L.P.

On July 2, 2007, the Company completed the acquisition of Old Lane Partners, L.P. and Old Lane Partners, GP, LLC (Old Lane). Old Lane is the manager of a global, multi-strategy hedge fund and a private equity fund with total assets under management and private equity commitments of approximately $4.5 billion. Old Lane will operate as part of Alternative Investments (AI), Citigroup’s integrated alternative investments platform. Old Lane’s Vikram Pandit became the Chief Executive Officer of AI.

Agreement to Establish Partnership with Quiñenco—Banco de Chile

On July 19, 2007, Citigroup and Quiñenco entered into a definitive agreement to establish a strategic partnership that combines Citi operations in Chile with Banco de Chile’s local banking franchise to create a banking and financial services institution with about 20% market share of the Chilean banking industry.

Under the agreement, Citi will initially acquire an approximate 32.96% stake in LQIF, a wholly owned subsidiary of Quiñenco that will then hold 57.1% of the voting rights and a 37.8% economic interest in Banco de Chile. In the initial phase, Citi will contribute Citi Chile and other assets (in cash or other businesses) for a total investment valued at $893 million. As part of the overall transaction, Citi will also acquire the U.S. businesses of Banco de Chile for approximately $130 million. Citi has the option to acquire an additional 17.04% stake in LQIF for approximately $900 million within three years. The new partnership calls for active participation by Citi in management of Banco de Chile, including board representation at both LQIF and Banco de Chile.

The transaction is expected to close in the first quarter of 2008, and is subject to customary regulatory reviews.

Acquisition of Automated Trading Desk

On July 2, 2007, Citigroup announced the agreement to acquire Automated Trading Desk (ATD), a leader in electronic market making and proprietary trading, for approximately $680 million ($102.6 million in cash and approximately 11.12 million shares of Citigroup stock). ATD will operate as a unit of Citigroup’s Global Equities business, adding a network of broker/dealer customers to Citigroup’s diverse base of institutional, broker/dealer and retail customers. The transaction is subject to regulatory approval and is expected to close in the third quarter of 2007.

Acquisition of Bank of Overseas Chinese

On April 9, 2007, Citigroup announced the agreement to acquire 100% of Bank of Overseas Chinese (BOOC) in Taiwan for approximately $427 million, subject to certain closing adjustments. BOOC offers a broad suite of corporate banking, consumer and wealth management products and services to more than one million clients through 55 branches in Taiwan.

This transaction will strengthen Citigroup’s presence in Asia making it the largest international bank and 13th largest by total assets among all domestic Taiwan banks. Citigroup’s acquisition of BOOC is subject to shareholder and U.S. and Taiwanese regulatory approvals and is expected to close during the second half of 2007.

Redecard IPO

On July 11, 2007, Citigroup (a 31.9% shareholder in Redecard S.A., the only merchant acquiring company for MasterCard in Brazil) sold 41.75 million Redecard shares as part of Redecard’s initial public offering. After the sale of these shares, Citigroup remains a 25% shareholder in Redecard. An after-tax gain of approximately $400 million will be recorded in Citigroup’s third quarter of 2007 financial results.

Resolution of Federal Tax Audit

In March 2006, the Company received a notice from the Internal Revenue Service (IRS) that they had concluded the tax audit for the years 1999 through 2002 (referred to hereinafter as the “resolution of the Federal Tax Audit”). For the first quarter of 2006, the Company released a total of $657 million from its tax contingency reserves related to the resolution of the Federal Tax Audit.

The following table summarizes the 2006 first quarter tax benefits, by business, from the resolution of the Federal Tax Audit:

*In millions of dollars*	Total
Global Consumer	$	290
Markets & Banking	176
Global Wealth Management	13
Alternative Investments	58
Corporate/Other	61
Continuing Operations	$	598

Discontinued Operations	59
Total	$	657

Adoption of the Accounting for Share-Based Payments

On January 1, 2006, the Company adopted Statement of Financial Accounting Standards (SFAS) No. 123 (revised 2004), “Share-Based Payment” (SFAS 123(R)), which replaced the existing SFAS 123 and superseded Accounting Principles Board (APB) Opinion No. 25. SFAS 123(R) requires companies to measure and record compensation expense for stock options and other share-based payments based on the instruments’ fair value, reduced by expected forfeitures.

In adopting this standard, the Company conformed to recent accounting guidance that restricted or deferred stock awards issued to retirement-eligible employees who meet certain age and service requirements must be either expensed on the grant date or accrued over a service period prior to the grant date. This charge consisted of $398 million after-tax ($648 million pretax) for the immediate expensing of awards granted to retirement-eligible employees in January 2006.

The following table summarizes the SFAS 123(R) impact, by segment, on the 2006 first quarter pretax compensation expense for stock awards granted to retirement-eligible employees in January 2006 (“the 2006 initial adoption of SFAS 123(R)”):

*In millions of dollars*	2006 First Quarter
Global Consumer	$	121
Markets & Banking	354
Global Wealth Management	145
Alternative Investments	7
Corporate/Other	21
Total	$	648

The Company recorded the quarterly accrual for the stock awards that were granted in January 2007 during each of the quarters in 2006. During the first and second quarters of 2007, the Company recorded the quarterly accrual for the estimated stock awards that will be granted in January 2008.

SEGMENT, PRODUCT AND REGIONAL—NET INCOME AND REVENUE

The following tables show the net income (loss) and revenue for Citigroup’s businesses on a segment and product view and on a regional view:

Citigroup Net Income—Segment and Product View

	Three Months Ended June 30,						%		Six Months Ended June 30,						%
*In millions of dollars*	2007			2006			Change		2007			2006			Change

Global Consumer
U.S. Cards	$	726		$	878		(17	)%	$	1,623		$	1,804		(10	)%
U.S. Retail Distribution	453			568			(20	)	841			1,083			(22	)
U.S. Consumer Lending	441			470			(6	)	800			907			(12	)
U.S. Commercial Business	151			138			9		272			264			3
Total U.S. Consumer(1)	$	1,771		$	2,054		(14	)%	$	3,536		$	4,058		(13	)%

International Cards	$	351		$	328		7	%	$	739		$	619		19	%
International Consumer Finance	(6		)	173			NM		19			341			(94	)
International Retail Banking	671			714			(6	)	1,211			1,391			(13	)
Total International Consumer	$	1,016		$	1,215		(16	)%	$	1,969		$	2,351		(16	)%

Other	$	(91	)	$	(92	)	1	%	$	(176	)	$	(159	)	(11	)%
Total Global Consumer	$	2,696		$	3,177		(15	)%	$	5,329		$	6,250		(15	)%

Markets & Banking
Securities and Banking	$	2,145		$	1,412		52	%	$	4,318		$	3,030		43	%
Transaction Services	514			340			51		961			663			45
Other	173			(29		)	NM		174			(41		)	NM
Total Markets & Banking	$	2,832		$	1,723		64	%	$	5,453		$	3,652		49	%

Global Wealth Management
Smith Barney	$	321		$	238		35	%	$	645		$	406		59	%
Private Bank	193			109			77		317			228			39
Total Global Wealth Management	$	514		$	347		48	%	$	962		$	634		52	%

Alternative Investments	$	456		$	257		77	%	$	678		$	610		11	%

Corporate/Other	(272		)	(242		)	(12	)	(1,184		)	(329		)	NM

Income from Continuing Operations	$	6,226		$	5,262		18	%	$	11,238		$	10,817		4	%
Income from Discontinued Operations(2)	—			3			(100	)	—			87			(100	)

Total Net Income	$	6,226		$	5,265		18	%	$	11,238		$	10,904		3	%

(1) U.S. disclosure includes Canada and Puerto Rico.

(2) See Note 2 on page 53.

NM Not meaningful

Citigroup Net Income—Regional View

	% of		Three Months Ended June 30,						%		Six Months Ended June 30,						%
*In millions of dollars*	Total(1)		2007			2006			Change		2007			2006			Change

*U.S.(2)*
Global Consumer			$	1,680		$	1,962		(14	)%	$	3,360		$	3,899		(14	)%
Markets & Banking			984			747			32		1,983			1,262			57
Global Wealth Management			335			290			16		696			518			34
Total U.S.	50	%	$	2,999		$	2,999		—		$	6,039		$	5,679		6	%

*Mexico*
Global Consumer			$	360		$	375		(4	)%	$	732		$	733		—
Markets & Banking			95			88			8		209			166			26	%
Global Wealth Management			15			10			50		27			18			50
Total Mexico	8	%	$	470		$	473		(1	)%	$	968		$	917		6	%

*EMEA*
Global Consumer			$	148		$	215		(31	)%	$	231		$	400		(42	)%
Markets & Banking			803			342			NM		1,497			977			53
Global Wealth Management			46			5			NM		53			8			NM
Total EMEA	17	%	$	997		$	562		77	%	$	1,781		$	1,385		29	%

*Japan*
Global Consumer			$	32		$	178		(82	)%	$	77		$	366		(79	)%
Markets & Banking			124			72			72		159			157			1
Global Wealth Management			30			—			—		30			—			—
Total Japan	3	%	$	186		$	250		(26	)%	$	266		$	523		(49	)%

*Asia*
Global Consumer			$	426		$	359		19	%	$	809		$	706		15	%
Markets & Banking			567			336			69		1,128			750			50	%
Global Wealth Management			74			40			85		139			85			64
Total Asia	17	%	$	1,067		$	735		45	%	$	2,076		$	1,541		35	%

*Latin America*
Global Consumer			$	50		$	88		(43	)%	$	120		$	146		(18	)%
Markets & Banking			259			138			88		477			340			40
Global Wealth Management			14			2			NM		17			5			NM
Total Latin America	5	%	$	323		$	228		42	%	$	614		$	491		25	%

Alternative Investments			$	456		$	257		77	%	$	678		$	610		11	%

Corporate/Other			(272		)	(242		)	(12	)	(1,184		)	(329		)	NM

Income from Continuing Operations			$	6,226		$	5,262		18	%	$	11,238		$	10,817		4	%
Income from Discontinued Operations(3)			—			3			(100	)	—			87			(100	)

Total Net Income			$	6,226		$	5,265		18	%	$	11,238		$	10,904		3	%

Total International	50	%	$	3,043		$	2,248		35	%	$	5,705		$	4,857		17	%

(1) Second quarter of 2007 as a percent of total Citigroup net income, excluding Alternative Investments and Corporate/Other.

(2) Excludes Alternative Investments and Corporate/Other, which are predominantly related to the U.S. The U.S. regional disclosure includes Canada and Puerto Rico. Global Consumer for the U.S. includes Other Consumer.

(3) See Note 2 on page 53.

NM Not meaningful

Citigroup Revenues—Segment and Product View

	Three Months Ended June 30,						%		Six Months Ended June 30,						%
*In millions of dollars*	2007			2006			Change		2007			2006			Change

Global Consumer
U.S. Cards	$	3,181		$	3,251		(2	)%	$	6,475		$	6,485		—
U.S. Retail Distribution	2,545			2,499			2		4,971			4,795			4	%
U.S. Consumer Lending	1,606			1,307			23		3,157			2,567			23
U.S. Commercial Business	446			516			(14	)	889			986			(10	)
Total U.S. Consumer(1)	$	7,778		$	7,573		3	%	$	15,492		$	14,833		4	%

*International Cards*	$	2,013		$	1,510		33	%	$	3,752		$	2,790		34	%
*International Consumer Finance*	843			1,009			(16	)	1,733			1,971			(12	)
*International Retail Banking*	3,030			2,555			19		5,789			5,022			15
Total International Consumer	$	5,886		$	5,074		16	%	$	11,274		$	9,783		15	%

Other	$	(2	)	$	(19	)	89	%	$	2		$	(33	)	NM
Total Global Consumer	$	13,662		$	12,628		8	%	$	26,768		$	24,583		9	%

Markets & Banking
Securities and Banking	$	7,121		$	5,269		35	%	$	14,434		$	11,165		29	%
Transaction Services	1,840			1,495			23		3,485			2,877			21
Other	—			(3		)	100		(1		)	(2		)	50
Total Markets & Banking	$	8,961		$	6,761		33	%	$	17,918		$	14,040		28	%

Global Wealth Management
Smith Barney	$	2,611		$	1,990		31	%	$	4,857		$	3,977		22	%
Private Bank	586			502			17		1,158			998			16
Total Global Wealth Management	$	3,197		$	2,492		28	%	$	6,015		$	4,975		21	%

Alternative Investments	$	1,032		$	584		77	%	$	1,594		$	1,259		27	%

Corporate/Other	(222		)	(283		)	22		(206		)	(492		)	58

Total Net Revenues	$	26,630		$	22,182		20	%	$	52,089		$	44,365		17	%

(1) U.S. disclosure includes Canada and Puerto Rico.

NM Not meaningful

Citigroup Revenues—Regional View

	% of		Three Months Ended June 30,						%		Six Months Ended June 30,						%
*In millions of dollars*	Total(1)		2007			2006			Change		2007			2006			Change

*U.S.(2)*
Global Consumer			$	7,776		$	7,554		3	%	$	15,494		$	14,800		5	%
Markets & Banking			3,041			2,803			8		6,755			5,726			18
Global Wealth Management			2,439			2,149			13		4,824			4,303			12
*Total U.S.*	51	%	$	13,256		$	12,506		6	%	$	27,073		$	24,829		9	%

*Mexico*
Global Consumer			$	1,354		$	1,192		14	%	$	2,731		$	2,341		17	%
Markets & Banking			183			199			(8	)	410			385			6
Global Wealth Management			41			33			24		77			64			20
*Total Mexico*	6	%	$	1,578		$	1,424		11	%	$	3,218		$	2,790		15	%

*EMEA*
Global Consumer			$	1,618		$	1,360		19	%	$	3,064		$	2,630		17	%
Markets & Banking			2,993			2,043			47		5,820			4,339			34
Global Wealth Management			137			83			65		245			158			55
*Total EMEA*	19	%	$	4,748		$	3,486		36	%	$	9,129		$	7,127		28	%

*Japan*
Global Consumer			$	680		$	807		(16	)%	$	1,295		$	1,582		(18	)%
Markets & Banking			453			269			68		665			565			18
Global Wealth Management			286			—			—		286			—			—
*Total Japan*	5	%	$	1,419		$	1,076		32	%	$	2,246		$	2,147		5	%

*Asia*
Global Consumer			$	1,464		$	1,244		18	%	$	2,823		$	2,433		16	%
Markets & Banking			1,635			1,062			54		3,039			2,194			39
Global Wealth Management			242			181			34		476			361			32
*Total Asia*	13	%	$	3,341		$	2,487		34	%	$	6,338		$	4,988		27	%

*Latin America*
Global Consumer			$	770		$	471		63	%	$	1,361		$	797		71	%
Markets & Banking			656			385			70		1,229			831			48
Global Wealth Management			52			46			13		107			89			20
Total Latin America	6	%	$	1,478		$	902		64	%	$	2,697		$	1,717		57	%

Alternative Investments			$	1,032		$	584		77	%	$	1,594		$	1,259		27	%

Corporate/Other			(222		)	(283		)	22	%	(206		)	(492		)	58	%

Total Net Revenues			$	26,630		$	22,182		20	%	$	52,089		$	44,365		17	%

Total International	49	%	$	12,564		$	9,375		34	%	$	23,628		$	18,769		26	%

(1) Second quarter of 2007 as a percent of total Citigroup revenues, net of interest expense, excluding Alternative Investments and Corporate/Other.

GLOBAL CONSUMER

Citigroup’s Global Consumer Group provides a wide array of banking, lending, insurance and investment services through a network of 8,202 branches, approximately 19,300 ATMs, 708 Automated Loan Machines (ALMs), the Internet, telephone and mail, and the Primerica Financial Services salesforce. Global Consumer serves more than 200 million customer accounts, providing products and services to meet the financial needs of both individuals and small businesses.

		Three Months Ended June 30,								%			Six Months Ended June 30,						%
*In millions of dollars*		2007				2006				Change			2007			2006			Change
Net interest revenue		$	8,189			$	7,481			9		%	$	15,833		$	14,705		8	%
Non-interest revenue		5,473				5,147				6			10,935			9,878			11
Revenues, net of interest expense		$	13,662			$	12,628			8			$	26,768		$	24,583		9	%
Operating expenses		7,063				6,379				11			13,823			12,736			9
Provisions for loan losses and for benefits and claims		2,769				1,649				68			5,455			3,317			64
Income before taxes and minority interest		$	3,830			$	4,600			(17		)%	$	7,490		$	8,530		(12	)%
Income taxes		1,104				1,400				(21		)	2,121			2,247			(6	)
Minority interest, net of taxes		30				23				30			40			33			21
Net income		$	2,696			$	3,177			(15		)	$	5,329		$	6,250		(15	)%
Average assets (in billions of dollars)		$	744			$	582			28		%	$	727		$	572		27	%
Return on assets		1.45		%		2.19		%					1.48		%	2.20		%
Average risk capital(1)		$	33,599			$	27,522			22		%	$	32,627		$	27,618		18	%
Return on risk capital(1)		32		%		46		%					33		%	46		%
Return on invested capital(1)		16		%		21		%					16		%	21		%
Key Indicators—(in billions of dollars)
Average loans		$	487.4			$	431.7			13		%
Average deposits		$	289.3			$	247.4			17		%
Total branches	8,202				7,670				7		%

(1) See footnote 3 to the table on page 4.

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U.S. CONSUMER

U.S. Consumer is composed of four businesses: Cards, Retail Distribution, Consumer Lending and Commercial Business which operate in the U.S., Canada and Puerto Rico.

	Three Months Ended June 30,						%		Six Months Ended June 30,						%
*In millions of dollars*	2007			2006			Change		2007			2006			Change
Net interest revenue	$	4,285		$	4,189		2	%	$	8,470		$	8,327		2	%
Non-interest revenue	3,493			3,384			3		7,022			6,506			8
Revenues, net of interest expense	$	7,778		$	7,573		3	%	$	15,492		$	14,833		4	%
Operating expenses	3,644			3,551			3		7,273			7,120			2
Provisions for loan losses and for benefits and claims	1,504			827			82		2,974			1,728			72
Income before taxes and minority interest	$	2,630		$	3,195		(18	)%	$	5,245		$	5,985		(12	)%
Income taxes	845			1,121			(25	)	1,687			1,898			(11	)
Minority interest, net of taxes	14			20			(30	)	22			29			(24	)
Net income	$	1,771		$	2,054		(14	)%	$	3,536		$	4,058		(13	)%
Average assets (in billions of dollars)	$	511		$	395		29	%	$	506		$	388		30	%
Return on assets	1.39		%	2.09		%			1.41		%	2.11		%
Average risk capital(1)	$	18,221		$	14,797		23	%	$	18,014		$	14,933		21	%
Return on risk capital(1)	39		%	56		%			40		%	55		%
Return on invested capital(1)	19		%	24		%			19		%	24		%
Key Indicators—(in billions of dollars)
Average loans	$	346.8		$	319.2		9	%
Average deposits	$	120.9		$	100.8		20	%
Total branches	3,433			3,253			6	%

(1) See footnote 3 to the table on page 4.

2Q07 vs. 2Q06

Net Interest Revenue was 2% better than the prior year, as growth in average deposits and loans of 20% and 9%, respectively, was partially offset by a decrease in net interest margins. Net interest margins declined due to an increase in higher-cost time deposit and e-savings balances, the securitization of higher-margin credit card receivables, and a mix toward lower-yielding mortgage assets.

Non-Interest Revenue increased 3% primarily due to higher loan and deposit volumes, 6% growth in Card purchase sales, and a higher level of securitized Card receivables. Growth was also driven by higher gains on sale of mortgage loans and net servicing revenues, and the impact of the acquisition of ABN AMRO Mortgage Group in the first quarter of 2007. Second quarter of 2006 results also included a $132 million pretax gain from the sale of upstate New York branches.

Operating expenses increased primarily due to acquisitions and increased investment spending, including 24 new branch openings during the quarter (15 in CitiFinancial and 9 in Citibank). Higher volume-related expenses primarily reflected 18% growth in loan originations in Consumer Lending.

Provisions for loan losses and for benefits and claims increased primarily reflecting a change in estimate of loan losses inherent in the U.S. Cards portfolio, portfolio seasoning and delinquencies in second mortgages, and higher loan volumes. The increase in provision for loan losses also reflected the absence of loan loss reserve releases recorded in the prior year. The net credit loss ratio increased 12 basis points to 1.26%.

2007 YTD vs. 2006 YTD

Net Interest Revenue was 2% better than the prior year, as growth in average deposits and loans of 20% and 10%, respectively, and higher risk-based fees in Cards, was partially offset by a decrease in net interest margins. Net interest margins declined due to an increase in higher-cost time deposit and e-savings balances, and the securitization of higher margin credit card receivables.

Non-Interest Revenue increased 8% primarily due to higher loan and deposit volumes, and 6% growth in Card purchase sales. Non-interest revenues also reflected a $161 million net pretax gain on the sale of MasterCard shares, the impact of the acquisition of ABN AMRO Mortgage Group in the first quarter of 2007, and higher gains on sale of mortgage loan and net servicing revenues. Second quarter of 2006 results also included a $132 million pretax gain from the sale of upstate New York branches.

Operating expenses increased primarily due to acquisitions, increased investment spending related to the 75 new branch openings during the first half of 2007 (45 in CitiFinancial and 30 in Citibank), and costs associated with Citibank Direct. The increase in 2007 was also favorably affected by the absence of the charge related to the initial adoption of SFAS 123(R) in the first quarter of 2006. Higher volume-related expenses primarily reflected 20% growth in loan originations in Consumer Lending businesses.

Provisions for loan losses and for benefits and claims increased primarily reflecting a change in estimate of loan losses inherent in the U.S. Cards portfolio. The increase in provision for loan losses also reflected the absence of loan loss reserve releases recorded in the prior year, higher loan volumes, portfolio seasoning and increased delinquencies in

second mortgages, as well as an increase in bankruptcy filings over unusually low filing levels experienced in the first half of 2006. The net credit loss ratio increased 9 basis points to 1.27%.

The Net income decline in 2007 also reflects the absence of a $175 million tax benefit resulting from the resolution of the Federal Tax Audit from the first quarter of 2006.

INTERNATIONAL CONSUMER

International Consumer is comprised of three businesses: Cards, Consumer Finance and Retail Banking. International Consumer operates in five regions: Mexico, Latin America, EMEA, Japan, and Asia.

	Three Months Ended June 30,								Six Months Ended June 30,
*In millions of dollars*	2007			2006			Change		2007			2006			Change
Net interest revenue	$	3,938		$	3,343		18	%	$	7,427		$	6,476		15	%
Non-interest revenue	1,948			1,731			13		3,847			3,307			16
Revenues, net of interest expense	$	5,886		$	5,074		16	%	$	11,274		$	9,783		15	%
Operating expenses	3,264			2,701			21		6,240			5,322			17
Provisions for loan losses and for benefits and claims	1,265			822			54		2,481			1,589			56
Income before taxes and minority interest	$	1,357		$	1,551		(13	)%	$	2,553		$	2,872		(11	)%
Income taxes	325			333			(2	)	566			517			9
Minority interest, net of taxes	16			3			NM		18			4			NM
Net income	$	1,016		$	1,215		(16	)%	$	1,969		$	2,351		(16	)%
Revenues, net of interest expense, by region:
Mexico	$	1,354		$	1,192		14	%	$	2,731		$	2,341		17	%
EMEA	1,618			1,360			19		3,064			2,630			17
Japan — Cards and Retail Banking	322			192			68		503			376			34
Asia	1,464			1,244			18		2,823			2,433			16
Latin America	770			471			63		1,361			797			71
Subtotal	$	5,528		$	4,459		24	%	$	10,482		$	8,577		22	%
Japan Consumer Finance	$	358		$	615		(42	)	$	792		$	1,206		(34	)
Total revenues	$	5,886		$	5,074		16	%	$	11,274		$	9,783		15	%
Net income by region
Mexico	$	360		$	375		(4	)%	$	732		$	733		—
EMEA	148			215			(31	)	231			400			(42	)%
Japan—Cards and Retail Banking	65			44			48		101			97			4
Asia	426			359			19		809			706			15
Latin America	50			88			(43	)	120			146			(18	)
Subtotal	$	1,049		$	1,081		(3	)%	$	1,993		$	2,082		(4	)%
Japan Consumer Finance	$	(33	)	$	134		NM		$	(24	)	$	269		NM
Total net income	$	1,016		$	1,215		(16	)	$	1,969		$	2,351		(16	)%
Average assets (in billions of dollars)	$	222		$	177		25	%	$	211		$	176		20	%
Return on assets	1.84		%	2.75		%			1.88		%	2.69		%
Average risk capital(1)	$	15,378		$	12,725		21		$	14,613		$	12,686		15
Return on risk capital(1)	26		%	38		%			27		%	37		%
Return on invested capital(1)	14		%	19		%			14		%	18		%
Key indicators—(in billions of dollars)
Average loans	$	140.6		$	112.5		25	%
Average deposits	$	168.4		$	146.6		15	%
EOP AUMs	$	150.3		$	122.8		22	%
Total branches	4,769			4,417			8	%

(1) See footnote 3 to the table on page 4.

NM Not meaningful

2Q07 vs. 2Q06

Net Interest Revenue increased 18%. Growth was driven by higher average loans, as well as the impact of the acquisitions of Grupo Financiero Uno, Egg, Grupo Cuscatlan, and CrediCard.

Non-Interest Revenue increased 13%, primarily due to higher Card purchase sales, up 31%, and increased investment product sales, up 46%. By region, the growth was led by Japan—Cards and Retail Banking, Latin America, Asia, and EMEA. The positive impact of foreign currency translation also contributed to increases in revenues. The 2006 second quarter included a gain on the MasterCard IPO of $55 million.

Excluding the impact of Japan Consumer Finance, revenues increased 24%.

Operating expenses increased, reflecting the integration of the CrediCard portfolio, the acquisitions of Grupo Financiero Uno, Grupo Cuscatlan, and Egg, and an increase in ownership in Nikko. Expense growth also reflects volume growth across the regions (excluding Japan Consumer Finance), continued investment spending, including 136 branches opened or acquired, higher customer activity, and the impact of foreign currency translation.

Provisions for loan losses and for benefits and claims increased 54% driven by portfolio growth, increased past due accounts and targeted market expansion in Mexico, the integration of acquisitions, higher net credit losses in Japan Consumer Finance, and the absence of 2006 second quarter loan loss reserve releases.

Net income was also affected by the absence of prior-year Mexico tax benefits of $70 million related to APB 23.

In Citigroup’s 2006 Form 10-K the Company stated that it expected its consumer finance business in Japan to break even in 2007. However, the situation remains unpredictable; and given the Company’s recent experience with the level of Grey Zone related refund claims, the Company’s best estimate now is that the business will have net losses in 2007. The Company will continue to analyze the profitability prospects for this business thereafter.

Certain of the statements above are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. See “Forward-Looking Statements” on page 44.

2007 YTD vs. 2006 YTD

Net Interest Revenue increased 15% overall, 26% after excluding the impact of Japan Consumer Finance. Growth was driven by higher average receivables, as well as the impact of the acquisitions of Grupo Financiero Uno, Egg, Grupo Cuscatlan, and CrediCard, and increased ownership in Nikko Cordial.

Non-Interest Revenue increased 16%, primarily due to higher purchase sales, up 28% in Cards, increased investment product sales, up 40% in Retail Banking, and growth across all regions. The positive impact of foreign currency translation and a year-over-year gain on the MasterCard IPO of $53 million also contributed to the increase in revenues.

Operating expenses increased, reflecting the integration of the CrediCard portfolio and the acquisitions of Grupo Financiero Uno, Grupo Cuscatlan, and Egg, and increased ownership in Nikko along with volume growth across the products and regions, continued investment spending driven by 269 branches opened or acquired, higher customer activity, and the impact of foreign currency translation. The increase in YTD 2007 expenses was also favorably affected by the absence of the charge related to the initial adoption of FAS 123(R) in the first quarter of 2006.

Provision for loan losses increased 56% driven by portfolio growth, increased past due accounts and portfolio seasoning in Mexico, the integration of acquisitions, and higher net credit losses in Japan Consumer Finance. These increases were partially offset by the absence of a 2006 second quarter loan loss reserve release.

Net Income was also affected by the absence of prior-year tax benefit impact of $190 million primarily resulting from APB 23 and the absence of a prior-year $75 million benefit from tax reserve releases related to the resolution of the Federal Tax Audit in the first quarter of 2006.

MARKETS & BANKING

Markets & Banking provides a broad range of trading, investment banking, and commercial lending products and services to companies, governments, institutions and investors in approximately 100 countries. Markets & Banking includes Securities and Banking, Transaction Services and Other Markets & Banking.

	Three Months Ended June 30,						%		Six Months Ended June 30,						%
*In millions of dollars*	2007			2006			Change		2007			2006			Change
Net interest revenue	$	2,831		$	2,147		32	%	$	5,283		$	4,381		21	%
Non-interest revenue	6,130			4,614			33		12,635			9,659			31
Revenues, net of interest expense	$	8,961		$	6,761		33	%	$	17,918		$	14,040		28	%
Operating expenses	4,948			4,158			19		10,059			8,915			13
Provision for credit losses	(62		)	173			NM		201			173			16
Income before taxes and minority interest	$	4,075		$	2,430		68	%	$	7,658		$	4,952		55	%
Income taxes	1,236			702			76		2,183			1,276			71
Minority interest, net of taxes	7			5			40		22			24			(8	)
Net income	$	2,832		$	1,723		64	%	$	5,453		$	3,652		49	%
Revenues, net of interest expense, by region:
U.S.	$	3,041		$	2,803		8	%	$	6,755		$	5,726		18	%
Mexico	183			199			(8	)	410			385			6
EMEA	2,993			2,043			47		5,820			4,339			34
Japan	453			269			68		665			565			18
Asia	1,635			1,062			54		3,039			2,194			39
Latin America	656			385			70		1,229			831			48
Total revenues	$	8,961		$	6,761		33	%	$	17,918		$	14,040		28	%
Net income by region:
U.S.	$	984		$	747		32	%	$	1,983		$	1,262		57	%
Mexico	95			88			8		209			166			26
EMEA	803			342			NM		1,497			977			53
Japan	124			72			72		159			157			1
Asia	567			336			69		1,128			750			50
Latin America	259			138			88		477			340			40
Total net income	$	2,832		$	1,723		64	%	$	5,453		$	3,652		49	%
Average risk capital(1)	$	27,555		$	21,755		27	%	$	25,850		$	21,174		22	%
Return on risk capital(1)	41		%	32		%			43		%	35		%
Return on invested capital(1)	32		%	23		%			32		%	26		%

(1) See footnote 3 to the table on page 4.

NM Not meaningful

2Q07 vs. 2Q06

Revenues, net of interest expense, increased driven by broad-based performance across products and regions. Equity Markets revenues increased driven by strong growth globally, including cash trading, derivatives products, equity finance and convertibles. Fixed Income Markets revenue increases were driven by improved results across interest rates and currencies, credit and securitized products, and commodities. Investment Banking revenue growth was driven by higher equity underwriting and advisory and other fees. Transaction Services revenues increased reflecting growth in liability balances and assets under custody, higher net interest margins in Cash Management and Securities and Funds Services.

Operating expenses increased due to higher business volumes, compensation costs and growth due to acquisitions. The growth in the second quarter of 2007 was favorably affected by a $300 million pretax release of litigation reserves.

The provision for credit losses decreased reflecting a stable global corporate credit environment and the absence of a $118 million net increase to loan loss reserves recorded in the prior-year period.

Markets & Banking’s exposure in the subprime secured lending market is divided between secured lending and trading, which together accounted for approximately 2% of the Securities and Banking revenues in full-year 2006.

The Company has been actively managing down its secured lending exposure. In addition, the Company has been adjusting clients’ collateral and margin requirements during these periods.

Citigroup continues to be an active market-maker in trading activities. As such, the Company hedges risks, using a variety of methods to monitor very carefully the ongoing credit quality of counterparties. The Company monitors its subprime business daily and has a rigorous process for marking the Company’s positions using fundamental valuation techniques, market references, and liquidity analysis.

Leveraged lending accounted for approximately 5% of Securities and Banking revenues in the second quarter of 2006. As of June 30, 2007, there were four committed transactions which required re-pricing. For those transactions, the Company recorded losses on its commitments, which were recorded in commissions and fees revenue during the second quarter of 2007. The Company has made commitments to finance other similar transactions which will likely require an adjustment to price and terms.

The Company believes that when these transactions are re-priced, these transactions will be sold to investors. In a small subset of these transactions, the Company has extended equity bridge commitments to top-tier clients in connection with the Company’s leveraged financing activities.

Certain of the statements above are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. See “Forward-Looking Statements” on page 44.

2007 YTD vs. 2006 YTD

Revenues, net of interest expense, increased, driven by broad-based performance across products and regions and by the $402 million benefit from the adoption of SFAS 157. Equity Markets revenues increased, driven by strong growth globally, including cash trading, derivatives products, equity finance, convertibles and prime brokerage. Fixed Income Markets revenue increases were driven by improved results across all products, including interest rates and currencies, and credit and securitized products and commodities. Investment Banking revenue growth was driven by higher equity underwriting and advisory and other fees. Transaction Services revenues increased reflecting growth in liability balances and assets under custody, higher net interest margins in Cash Management and Securities and Funds Services.

Operating expenses growth was primarily driven by higher business volumes and compensation costs. The growth in 2007 was favorably affected by the absence of a $354 million charge related to the initial adoption of SFAS 123(R) in the first quarter of 2006 and a $300 million pretax release of litigation reserves in the second quarter of 2007.

The provision for credit losses increased due to a net charge of $286 million in the first quarter of 2007 to increase loan loss reserves. The increase in loan loss reserves was driven by portfolio growth, which includes higher commitments to leveraged transactions and an increase in average loan tenor. This was partially offset by a decrease in the second quarter reflecting a stable global corporate credit environment and the absence of a $118 million net increase to loan loss reserves recorded in the prior-year second quarter.

GLOBAL WEALTH MANAGEMENT

Global Wealth Management is comprised of the Smith Barney Private Client businesses (including Citigroup Wealth Advisors, Nikko, Quilter and the legacy Citicorp Investment Services business), Citigroup Private Bank, and Citigroup Investment Research.

	Three Months Ended June 30,						%		Six Months Ended June 30,						%
*In millions of dollars*	2007			2006			Change		2007			2006			Change
Net interest revenue	$	526		$	444		18	%	$	1,055		$	904		17	%
Non-interest revenue	2,671			2,048			30		4,960			4,071			22
Revenues, net of interest expense	$	3,197		$	2,492		28	%	$	6,015		$	4,975		21	%
Operating expenses	2,455			1,961			25		4,557			4,016			13
Provision for loan losses	12			8			50		29			13			NM
Income before taxes and minority interest	$	730		$	523		40	%	$	1,429		$	946		51	%
Income taxes	199			176			13		450			312			44
Minority interest, net of taxes	17			—			—		17			—			—
Net income	$	514		$	347		48	%	$	962		$	634		52	%
Revenues, net of interest expense, by region:
U.S.	$	2,439		$	2,149		13	%	$	4,824		$	4,303		12	%
Mexico	41			33			24		77			64			20
EMEA	137			83			65		245			158			55
Japan	286			—			—		286			—			—
Asia	242			181			34		476			361			32
Latin America	52			46			13		107			89			20
Total revenues	$	3,197		$	2,492		28		$	6,015		$	4,975		21
Net income by region:
U.S.	$	335		$	290		16	%	$	696		$	518		34	%
Mexico	15			10			50		27			18			50
EMEA	46			5			NM		53			8			NM
Japan	30			—			—		30			—			—
Asia	74			40			85		139			85			64
Latin America	14			2			NM		17			5			NM
Total net income	$	514		$	347		48		$	962		$	634		52
Average risk capital(1)	$	2,878		$	2,366		22	%	$	2,878		$	2,452		17	%
Return on risk capital(1)	72		%	59		%			67		%	52		%
Return on invested capital(1)	30		%	36		%			34		%	32		%
Key indicators: (in billions of dollars)
Total assets under fee-based management	$	509		$	363		40	%
Total client assets(2)	1,788			1,321			35	%
Net client asset flows	—			(4		)	NM
Financial advisors (FA) / bankers(2)	15,595			13,671			14	%
Annualized revenue per FA / banker (in thousands of dollars)	$	878		$	726		21	%
Average deposits and other customer liability balances	$	113		$	100		13	%
Average loans	$	51		$	42		21

(1) See footnote 3 to the table on page 4.

(2) During the second quarter of 2007, U.S. Consumer’s Retail Distribution transferred approximately $47 billion of Client Assets, 686 Financial Advisors and 79 branches to Smith Barney related to the consolidation of Citicorp Investment Services (CIS) into Smith Barney.

NM Not meaningful

2Q07 vs. 2Q06

Revenues, net of interest expense, of $3.197 billion in the second quarter of 2007 increased $705 million, or 28%, from the prior-year period, primarily reflecting the acquisition of Nikko; an increase in fee-based and recurring net interest revenue, reflecting the continued advisory-based strategy; an increase in international revenues, driven by strong Capital Markets activity in Asia; and strong domestic syndicate sales. Total assets under fee-based management were $509 billion as of June 30, 2007, up $146 billion, or 40%, from the prior-year period. Total client assets, including assets under fee-based management, of $1,788 billion in the second quarter of 2007 increased $467 billion, or 35%, compared to the prior-year quarter, reflecting organic growth and the acquisition of Nikko and Quilter client assets, as well as the transfer of CIS assets from U.S. Consumer on June 30, 2007. Global Wealth Management had 15,595 financial advisors/bankers as of June 30, 2007, compared with 13,671 as of June 30, 2006, driven by the Nikko and Quilter acquisitions, the CIS transfer, and hiring in the Private Bank. Annualized revenue per FA/banker of $878,000 increased 21% from the prior-year quarter.

Operating expenses of $2.455 billion in the second quarter of 2007 increased $494 million from the prior-year

quarter. The expense increase in 2007 was mainly driven by the Nikko and Quilter acquisitions as well as higher variable compensation associated with increased business volumes.

The provision for loan losses increased $4 million, or 50%. The provision of $12 million in the current quarter was driven by portfolio growth.

Net Income in the 2007 second quarter included a $65 million APB 23 benefit in Private Bank.

2007 YTD vs. 2006 YTD

Revenues, net of interest expense, of $6.015 billion in the first half of 2007 increased $1.040 billion, or 21%, from the prior-year period, primarily due to a 77% increase in international revenues, driven by the Nikko acquisition, strong Capital Markets activity in Asia and Latin America, and higher domestic syndicate sales. Net flows were $6 billion compared to ($1) billion in the prior-year first half.

Operating expenses of $4.557 billion in the first half of 2007 increased $541 million from the prior year. The expense increase in 2007 was favorably affected by the absence of the charge related to the initial adoption of SFAS 123(R) in the first quarter of 2006 of $145 million. Additionally, the increase in expenses was driven by the Nikko and Quilter acquisitions and higher variable compensation associated with increased business volumes.

The provision for loan losses increased $16 million, primarily driven by portfolio growth.

ALTERNATIVE INVESTMENTS

Alternative Investments (AI) manages capital on behalf of Citigroup, as well as for third-party institutional and high-net-worth investors. AI is an integrated alternative investment platform that manages a wide range of products across five asset classes, including private equity, hedge funds, real estate, structured products and managed futures.

	Three Months Ended June 30,						%		Six Months Ended June 30,						%
*In millions of dollars*	2007			2006			Change		2007			2006			Change
Net interest revenue	$	(3	)	$	(7	)	57	%	$	(23	)	$	(4	)	NM
Non-interest revenue	1,035			591			75		1,617			1,263			28	%
Total revenues, net of interest expense	$	1,032		$	584		77	%	$	1,594		$	1,259		27	%
Net realized and net change in unrealized gains	910			475			92		1,354			1,038			30	%
Fees, dividends and interest	42			49			(14	)	77			98			(21	)
Other	(42		)	(37		)	(14	)	(85		)	(65		)	(31	)
Total proprietary investment activities revenues	910			487			87		1,346			1,071			26	%
Client revenues(1)	122			97			26		248			188			32
Total revenues, net of interest expense	$	1,032		$	584		77	%	$	1,594		$	1,259		27	%
Operating expenses	215			199			8		395			380			4
Provision for loan losses	—			(13		)	100		1			(13		)	NM
Income before taxes and minority interest	$	817		$	398		NM		$	1,198		$	892		34	%
Income taxes	$	297		$	138		NM		$	435		$	249		75	%
Minority interest, net of taxes	64			3			NM		85			33			NM
Net income	$	456		$	257		77	%	$	678		$	610		11	%
Average risk capital(2) (in billions of dollars)	$	4.0		$	4.0		—		$	4.1		$	4.3		(5	)%
Return on risk capital(2)	46		%	26		%			33		%	29		%
Return on invested capital(2)	42		%	22		%			31		%	25		%
Revenue by product:
Client(1)	$	122		$	97		26	%	$	248		$	188		32	%
Private Equity	$	711		$	516		38	%	$	1,072		$	729		47	%
Hedge Funds	119			(43		)	NM		166			64			NM
Other	80			14			NM		108			278			(61	)
Proprietary	$	910		$	487		87	%	$	1,346		$	1,071		26	%
Total	$	1,032		$	584		77	%	$	1,594		$	1,259		27	%
Key indicators: (in billions of dollars)
Capital under management:
Client	$	47.4		$	30.6		55	%
Proprietary	11.8			11.3			4	%
Total	$	59.2		$	41.9		41	%

(1) Includes fee income.

(2) See footnote 3 to the table on page 4.

NM Not meaningful

2Q07 vs. 2Q06

Revenues, net of interest expense, of $1.032 billion in the second quarter of 2007 increased $448 million or 77%.

Total proprietary revenues, net of interest expense, for the second quarter of 2007 of $910 million, were composed of revenues from private equity of $711 million, hedge funds of $119 million and other investment activity of $80 million. Private equity revenue increased $195 million from the 2006 second quarter, primarily driven by higher realized and unrealized gains. Hedge fund revenue improved by $162 million, largely due to a higher investment performance. Other investment activities revenue increased $66 million from the 2006 second quarter, largely due to realized and unrealized real estate gains and the mark-to-market value on Citigroup’s investments. Client revenues increased $25 million, reflecting increased management fees from a 55% growth in average client capital under management.

Operating expenses in the second quarter of 2007 of $215 million increased $16 million from the second quarter of 2006, primarily due to increased performance-driven compensation and higher employee-related expenses.

Minority interest, net of taxes, in the second quarter of 2007 of $64 million increased $61 million from the second quarter of 2006, primarily due to higher private equity gains related to underlying investments held by consolidated majority-owned legal entities. The impact of minority interest is reflected in fees, dividends, and interest, and net realized

and net change in unrealized gains consistent with proceeds received by minority interests.

Proprietary capital under management of $11.8 billion increased $506 million from the second quarter 2006, as increases in private equity and hedge funds were partially offset by the sale of MetLife shares in July 2006.

Client capital under management of $47.4 billion in the 2007 second quarter increased $16.8 billion from the 2006 second quarter, due to inflows from institutional and high-net-worth clients.

On July 2, 2007, the Company completed the acquisition of Old Lane Partners, L.P. and Old Lane Partners, GP, LLC (Old Lane). Old Lane is the manager of a global, multi-strategy hedge fund and a private equity fund with total assets under management and private equity commitments of approximately $4.5 billion. Old Lane will operate as part of AI. Old Lane’s Vikram Pandit became the Chief Executive Officer of AI.

2007 YTD vs. 2006 YTD

Revenues, net of interest expense, of $1.594 billion in the first six months of 2007 increased $335 million, or 27%.

Total proprietary revenues, net of interest expense, for the first six months of 2007 of $1.346 billion, were composed of revenues from private equity of $1.072 billion, hedge funds of $166 million and other investment activity of $108 million. Private equity revenue increased $343 million from the first six months of 2006, primarily driven by higher realized and unrealized gains. Hedge fund revenue increased $102 million, largely due to higher investment performance on an increased asset base. Other investment activities revenue decreased $170 million from the first six months of 2006, largely due to the absence of gains from the liquidation during 2006 of Citigroup’s investment in St. Paul shares. Client revenues increased $60 million, reflecting increased management fees from a 53% growth in average client capital under management.

Operating expenses in the first six months of 2007 of $395 million increased $15 million from the first six months of 2006, primarily due to increased performance-driven compensation and higher employee-related expenses.

Minority interest, net of taxes, in the first six months of 2007 of $85 million increased $52 million from the first six months of 2006, primarily due to higher private equity gains related to underlying investments held by consolidated majority-owned legal entities. The impact of minority interest is reflected in fees, dividends, and interest, and net realized gains/(losses) consistent with proceeds received by minority interests.

Net Income in the first six months 2006 reflects higher tax benefits including $58 million resulting from the resolution of the Federal Tax Audit in the first quarter of 2006.

CORPORATE/OTHER

Corporate/Other includes treasury results, the 2007 restructuring charges, unallocated corporate expenses, offsets to certain line-item reclassifications reported in the business segments (inter-segment eliminations), the results of discontinued operations and unallocated taxes.

	Three Months Ended June 30,						Six Months Ended June 30,
*In millions of dollars*	2007			2006			2007			2006
Revenues, net of interest expense	$	(222	)	$	(283	)	$	(206	)	$	(492	)
Restructuring expense	63			—			1,440			—
Other operating expense	111			72			152			80
Provision for loan losses	(2		)	—			(2		)	—
Loss from continuing operations before taxes and minority interest	$	(394	)	$	(355	)	$	(1,796	)	$	(572	)
Income tax benefits	(127		)	(113		)	(618		)	(244		)
Minority interest, net of taxes	5			—			6			1
Loss from continuing operations	$	(272	)	$	(242	)	$	(1,184	)	$	(329	)
Income from discontinued operations	—			3			—			87
Net loss	$	(272	)	$	(239	)	$	(1,184	)	$	(242	)

2Q07 vs. 2Q06

Revenues, net of interest expense, increased, primarily due to improved treasury results, partially offset by higher intersegment eliminations. Lower overall rates, partially offset by higher funding balances, drove the improvement in treasury revenues.

Restructuring expense. See Note 7 on page 57 for details on the 2007 restructuring charge.

Other operating expenses increased, primarily due to increased staffing, technology and other unallocated expenses, partially offset by higher intersegment eliminations.

Income tax benefits increased due to the higher pretax loss in the current year.

2007 YTD vs. 2006 YTD

Revenues, net of interest expense, increased, primarily due to improved treasury results and a gain on the sale of certain corporate-owned assets, partially offset by higher intersegment eliminations. Lower overall rates drove the improvement in treasury revenues.

Restructuring expense. See Note 7 on page 57 for details on the 2007 restructuring charge.

Other operating expenses increased, primarily due to increased staffing, technology and other unallocated expenses, partially offset by higher intersegment eliminations.

Income tax benefits increased due to the higher pretax loss in the current year, offset by a prior-year tax reserve release of $61 million relating to the resolution of the Federal Tax Audit.

Discontinued operations represent the operations in the Company’s Sale of the Asset Management Business to Legg Mason Inc., and the Sale of the Life Insurance and Annuities Business. For 2006, income from discontinued operations included a gain from the Sale of the Asset Management Business in Poland, as well as a tax reserve release of $59 million relating to the resolution of the Federal Tax Audit. See Note 2 on page 53.

MANAGING GLOBAL RISK

Citigroup’s risk management framework balances strong corporate oversight with well-defined independent risk management functions within each business. The Citigroup risk management framework is described in Citigroup’s 2006 Annual Report on Form 10-K.

RISK CAPITAL

At June 30, 2007, December 31, 2006, and June 30, 2006, risk capital for Citigroup was composed of the following risk types:

*In billions of dollars*	June 30, 2007			Dec. 31, 2006			June 30, 2006
Credit risk	$	42.8		$	36.7		$	35.7
Market risk	28.9			21.5			17.6
Operational risk	7.9			8.0			8.1
Intersector diversification(1)	(5.4		)	(6.4		)	(5.7		)
Total Citigroup	$	74.2		$	59.8		$	55.7

Return on risk capital (second quarter)	35		%				38		%
Return on invested capital (second quarter)	20		%				19		%

Return on risk capital (six months)	33		%				39		%
Return on invested capital (six months)	19		%				20		%

(1) Reduction in risk represents diversification between sectors.

Average risk capital, return on risk capital and return on invested capital are provided for each segment and are disclosed on pages 12 – 22.

DETAILS OF CREDIT LOSS EXPERIENCE

*In millions of dollars*	2nd Qtr. 2007			1st Qtr. 2007			4th Qtr. 2006			3rd Qtr. 2006			2nd Qtr. 2006
Allowance for loan losses at beginning of period	$	9,510		$	8,940		$	8,979		$	9,144		$	9,505
Provision for loan losses
Consumer	$	2,583		$	2,443		$	2,028		$	1,736		$	1,426
Corporate	(63		)	263			85			57			10
	$	2,520		$	2,706		$	2,113		$	1,793		$	1,436
Gross credit losses
Consumer
In U.S. offices	$	1,264		$	1,291		$	1,223		$	1,091		$	1,090
In offices outside the U.S.	1,346			1,341			1,309			1,227			1,145
Corporate
In U.S. offices	22			6			13			6			44
In offices outside the U.S.	30			29			97			38			75
	$	2,662		$	2,667		$	2,642		$	2,362		$	2,354
Credit recoveries
Consumer
In U.S. offices	$	175		$	214		$	165		$	153		$	183
In offices outside the U.S.	343			286			307			350			298
Corporate
In U.S. offices	9			18			2			5			12
In offices outside the U.S.	80			40			26			48			65
	$	607		$	558		$	500		$	556		$	558
Net credit losses
In U.S. offices	$	1,102		$	1,065		$	1,069		$	939		$	939
In offices outside the U.S.	953			1,044			1,073			867			857
Total	$	2,055		$	2,109		$	2,142		$	1,806		$	1,796
Other—net(1)(2)(3)(4)(5)	$	406		$	(27	)	$	(10	)	$	(152	)	$	(1	)
Allowance for loan losses at end of period	$	10,381		$	9,510		$	8,940		$	8,979		$	9,144
Allowance for unfunded lending commitments(6)	$	1,100		$	1,100		$	1,100		$	1,100		$	1,050
Total allowance for loans and unfunded lending commitments	$	11,481		$	10,610		$	10,040		$	10,079		$	10,194
Net consumer credit losses	$	2,092		$	2,132		$	2,060		$	1,815		$	1,754
As a percentage of average consumer loans	1.56		%	1.69		%	1.64		%	1.49		%	1.48		%
Net corporate credit losses/(recoveries)	$	(37	)	$	(23	)	$	82		$	(9	)	$	42
As a percentage of average corporate loans	NM			NM			0.05		%	NM			0.03		%

(1) The second quarter of 2007 primarily includes additions to the loan loss reserve of $448 million related to the acquisition of Egg, partially offset by reductions of $70 million related to securitizations and $75 million related to a balance sheet reclassification to Loans Held for Sale in the U.S. Cards portfolio.

(2) The first quarter of 2007 includes reductions to the loan loss reserve of $97 million related to a balance sheet reclass to Loans Held for Sale in the U.S. Cards portfolio and the addition of $75 million related to the acquisition of Grupo Financiero Uno.

(3) The 2006 fourth quarter includes reductions to the loan loss reserve of $74 million related to securitizations.

(4) The 2006 third quarter includes reductions to the loan loss reserve of $140 million related to securitizations and portfolio sales.

(5) The 2006 second quarter includes reductions to the loan loss reserve of $125 million related to securitizations, offset by $84 million of additions related to the Credicard acquisition.

(6) Represents additional credit loss reserves for unfunded corporate lending commitments and letters of credit recorded within Other Liabilities on the Consolidated Balance Sheet.

NM Not meaningful

Consumer Loan Balances, Net of Unearned Income

	End of Period						Average
*In billions of dollars*	June 30, 2007		March 31, 2007		June 30, 2006		2nd Qtr. 2007		1st Qtr. 2007		2nd Qtr. 2006
On-balance sheet(1)	$	548.6	$	516.6	$	478.3	$	539.3	$	511.9	$	474.0
Securitized receivables (all in U.S. Cards)	101.1		98.6		97.3		97.5		97.3		94.5
Credit card receivables held-for-sale(2)	2.9		3.0		—		3.3		3.0		—
Total managed(3)	$	652.6	$	618.2	$	575.6	$	640.1	$	612.2	$	568.5

(1) Total loans and total average loans exclude certain interest and fees on credit cards of approximately $2 billion and $2 billion for the second quarter of 2007, approximately $2 billion and $2 billion for the first quarter of 2007, and approximately $3 billion and $3 billion for the second quarter of 2006, respectively, which are included in Consumer Loans on the Consolidated Balance Sheet.

(2) Included in Other Assets on the Consolidated Balance Sheet.

(3) This table presents loan information on a held basis and shows the impact of securitization to reconcile to a managed basis. Managed-basis reporting is a non-GAAP measure. Held-basis reporting is the related GAAP measure.

Citigroup’s total allowance for loans, leases and unfunded lending commitments of $11.481 billion is available to absorb probable credit losses inherent in the entire portfolio. For analytical purposes only, the portion of Citigroup’s allowance for credit losses attributed to the Consumer portfolio was $7.206 billion at June 30, 2007, $6.338 billion at March 31, 2007 and $6.311 billion at June 30, 2006. The increase in the allowance for credit losses from June 30, 2006 of $895 million included net builds of $691 million.

The net builds primarily related to: increased delinquencies in second mortgages in U.S. Consumer Lending; a change in estimate of loan losses inherent in the U.S. Cards portfolio; targeted market expansion, an increase in past due accounts, and portfolio seasoning in Mexico cards; increased reserves in Japan, primarily related to the change in the operating environment in the consumer finance business and the passage on December 13, 2006 of changes to Japan’s consumer lending laws; and overall growth in the Consumer portfolio.

Additionally, the allowance had an increase of $204 million primarily due to: the addition of $580 million related to the acquisition of Egg, Nikko and Grupo Financiero Uno, and increased ownership in Nikko Cordial; offset by a reduction of $459 million related to securitizations, transfers to loans held-for-sale, and sales of portfolios in the U.S. Cards business.

On-balance sheet consumer loans of $548.6 billion increased $70.3 billion, or 15%, from June 30, 2006, primarily driven by U.S. Consumer Lending, U.S. Retail Distribution, Global Wealth Management, International Cards and International Retail Banking. Net credit losses, delinquencies and the related ratios are affected by the credit performance of the portfolios, including bankruptcies, unemployment, global economic conditions, portfolio growth and seasonal factors, as well as macro-economic and regulatory policies.

U.S. Consumer Mortgage Portfolio

The Company’s U.S. Consumer Mortgage portfolio consists of both first and second mortgages. As of June 30, 2007, approximately 85% of the Company’s first mortgage portfolio had a FICO (Fair Isaac Corporation) credit score of at least 620 at origination. Approximately 72% of the first mortgage portfolio had a loan-to-value (LTV) ratio of 80% or less at origination.

In the Company’s second mortgage portfolio, there were substantially less than 1% of loans at June 30, 2007 with a FICO score of less than 620 at origination. Approximately 48% of the second mortgage portfolio had an LTV ratio of 80% or less at origination.

In light of increased delinquencies, the Company has increased reserves for loans in its second mortgage portfolio during the first six months of 2007. There were minimal changes in the composition of the U.S. Consumer Mortgage portfolio from March 31, 2007 to June 30, 2007.

CORPORATE CREDIT RISK

Credit Exposure Arising from Derivatives and Foreign Exchange

The following tables summarize by derivative type the notionals, receivables and payables held for trading and asset/liability management hedge purposes as of June 30, 2007 and December 31, 2006. A portion of the asset/liability management hedges are accounted for under SFAS 133, as described in Note 15 on page 69.

CITIGROUP DERIVATIVES

Notionals(1)

	Trading Derivatives(2)				Asset/Liability Management Hedges(3)
*In millions of dollars*	June 30, 2007		December 31, 2006		June 30, 2007		December 31, 2006

Interest rate contracts
Swaps	$	15,456,277	$	14,196,404	$	677,310	$	561,376
Futures and forwards	2,290,094		1,824,205		132,280		75,374
Written options	3,558,937		3,054,990		18,443		12,764
Purchased options	3,558,971		2,953,122		72,263		35,420
Total interest rate contract notionals	$	24,864,279	$	22,028,721	$	900,296	$	684,934

Foreign exchange contracts
Swaps	$	800,304	$	722,063	$	69,952	$	53,216
Futures and forwards	2,318,837		2,068,310		39,283		42,675
Written options	521,790		416,951		545		1,228
Purchased options	512,025		404,859		758		1,246
Total foreign exchange contract notionals	$	4,152,956	$	3,612,183	$	110,538	$	98,365

Equity contracts
Swaps	$	131,262	$	104,320	$	—	$	—
Futures and forwards	31,216		36,362		—		—
Written options	587,432		387,781		—		—
Purchased options	541,496		355,891		—		—
Total equity contract notionals	$	1,291,406	$	884,354	$	—	$	—

Commodity and other contracts
Swaps	$	34,372	$	35,611	$	—	$	—
Futures and forwards	47,648		17,433		—		—
Written options	18,000		11,991		—		—
Purchased options	24,344		16,904		—		—
Total commodity and other contract notionals	$	124,364	$	81,939	$	—	$	—

Credit derivatives	$	2,924,046	$	1,944,980	$	—	$	—
Total derivative notionals	$	33,357,051	$	28,552,177	$	1,010,834	$	783,299

Mark-to-Market (MTM) Receivables/Payables

	Derivatives Receivables—MTM						Derivatives Payables—MTM
*In millions of dollars*	June 30, 2007			December 31, 2006(4)			June 30, 2007			December 31, 2006(4)
Trading Derivatives(2)
Interest rate contracts	$	213,344		$	168,872		$	217,817		$	168,793
Foreign exchange contracts	57,195			52,297			50,824			47,469
Equity contracts	30,169			26,883			65,604			52,980
Commodity and other contracts	5,326			5,387			5,926			5,776
Credit derivative	26,533			14,069			27,096			15,081
Total	$	332,567		$	267,508		$	367,267		$	290,099
Less: Netting agreements, cash collateral and market value adjustments	(271,854		)	(217,967		)	(270,085		)	(215,295		)
Net Receivables/Payables	$	60,713		$	49,541		$	97,182		$	74,804

Asset/Liability Management Hedges (3)
Interest rate contracts	$	1,818		$	1,801		$	3,538		$	3,327
Foreign exchange contracts	4,228			3,660			1,359			947
Total	$	6,046		$	5,461		$	4,897		$	4,274

(1) Includes the notional amounts for long and short derivative positions.

(2) Trading Derivatives include proprietary positions, as well as hedging derivatives instruments that do not qualify for hedge accounting in accordance with SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities” (SFAS 133).

(3) Asset/Liability Management Hedges include only those end-user derivative instruments where the changes in market value are recorded to other assets or other liabilities.

(4) Reclassified to conform to the current period’s presentation.

MARKET RISK MANAGEMENT PROCESS

Market risk encompasses liquidity risk and price risk, both of which arise in the normal course of business of a global financial intermediary. Liquidity risk is the risk that an entity may be unable to meet a financial commitment to a customer, creditor, or investor when due. Liquidity risk is discussed in the “Capital Resources and Liquidity” on page 38. Price risk is the earnings risk from changes in interest rates, foreign exchange rates, equity and commodity prices, and in their implied volatilities. Price risk arises in non-trading portfolios, as well as in trading portfolios.

The exposures in the following table represent the approximate annualized risk to NIR assuming an unanticipated parallel instantaneous 100bp change, as well as a more gradual 100bp (25bp per quarter) parallel change in rates as compared with the market forward interest rates in selected currencies.

The exposures in the following tables do not include interest rate exposures (IRE) for Nikko Cordial due to the unavailability of information. Nikko’s IRE exposure is primarily denominated in Japanese yen.

	June 30, 2007						March 31, 2007						June 30, 2006
*In millions of dollars*	Increase			Decrease			Increase			Decrease			Increase			Decrease
U.S. dollar
Instantaneous change	$	(572	)	$	553		$	(677	)	$	470		$	(344	)	$	436
Gradual change	$	(309	)	$	329		$	(335	)	$	348		$	(247	)	$	212
Mexican peso
Instantaneous change	$	(29	)	$	29		$	21		$	(21	)	$	44		$	(44	)
Gradual change	$	(14	)	$	14		$	21		$	(21	)	$	32		$	(32	)
Euro
Instantaneous change	$	(97	)	$	97		$	(123	)	$	123		$	(70	)	$	70
Gradual change	$	(43	)	$	43		$	(57	)	$	57		$	(33	)	$	33
Japanese yen
Instantaneous change	$	(9	)	NM			$	(38	)	NM			$	(21	)	NM
Gradual change	$	(5	)	NM			$	(26	)	NM			$	(10	)	NM
Pound sterling
Instantaneous change	$	(19	)	$	19		$	(22	)	$	22		$	(32	)	$	31
Gradual change	$	3		$	(3	)	$	(11	)	$	11		$	(18	)	$	18

NM Not meaningful. A 100 basis point decrease in interest rates would imply negative rates for the Japanese yen yield curve.

The changes in the U.S. dollar interest rate exposures from March 31, 2007 primarily reflects movements in customer-related asset and liability mix, as well as Citigroup’s view of prevailing interest rates.

The following table shows the risk to NIR from six different changes in the implied forward rates. Each scenario assumes that the rate change will occur on a gradual basis every three months over the course of one year.

	Scenario 1			Scenario 2			Scenario 3			Scenario 4			Scenario 5			Scenario 6
Overnight rate change (bp)	—			100			200			(200		)	(100		)	—
10-year rate change (bp)	(100		)	—			100			(100		)	—			100
Impact to net interest revenue (in millions of dollars)	$	(147	)	$	(461	)	$	(922	)	$	781		$	511		$	(70	)

For Citigroup’s major trading centers, the aggregate pretax VAR in the trading portfolios was $153 million, $122 million, and $97 million at June 30, 2007, March 31, 2007, and June 30, 2006, respectively. Daily exposures averaged $138 million during the second quarter of 2007 and ranged from $109 million to $164 million.

The following table summarizes VAR to Citigroup in the trading portfolios at June 30, 2007, March 31, 2007, and June 30, 2006, including the Total VAR, the specific risk only component of VAR, and Total—General market factors only, along with the quarterly averages:

*In million of dollars*	June 30, 2007			Second Quarter 2007 Average			March 31, 2007			First Quarter 2007 Average			June 30, 2006			Second Quarter 2006 Average
Interest rate	$	117		$	102		$	99		$	95		$	96		$	103
Foreign exchange	32			31			29			28			27			29
Equity	100			87			77			70			41			51
Commodity	31			35			27			28			13			19
Covariance adjustment	(127		)	(117		)	(110		)	(100		)	(80		)	(87		)
Total—All market risk factors, including general and specific risk	$	153		$	138		$	122		$	121		$	97		$	115
Specific risk only component	$	8		$	11		$	5		$	12		$	5		$	10
Total—General market factors only	$	145		$	127		$	117		$	109		$	92		$	105

The specific risk only component represents the level of equity and debt issuer-specific risk embedded in VAR. Citigroup’s specific risk model conforms to the 4x-multiplier treatment approved by the Federal Reserve and is subject to extensive annual hypothetical back-testing.

The table below provides the range of VAR in each type of trading portfolio that was experienced during the quarters ended:

	June 30, 2007				March 31, 2007				June 30, 2006
*In millions of dollars*	Low		High		Low		High		Low		High
Interest rate	$	88	$	128	$	71	$	125	$	86	$	125
Foreign exchange	27		35		21		35		21		40
Equity	64		112		55		85		41		68
Commodity	24		49		17		34		12		25

COUNTRY AND CROSS-BORDER RISK

The table below shows all countries where total cross-border outstandings exceed 0.75% of total Citigroup assets:

June 30, 2007

December 31, 2006

Cross-Border Claims on Third Parties

Banks

Public

Private

Total

Trading
and Short-
Term
Claims(1)

Investments
in and
Funding of
Local
Franchises

Total
Cross-
Border
Out-
standings

Commit-
ments(2)

Total
Cross-
Border
Out-
standings

Commit-
ments

Germany

19.4

8.1

8.7

36.2

33.2

—

36.2

40.3

38.6

43.6

India

1.7

0.1

11.8

13.6

11.1

19.0

32.6

1.4

24.8

0.7

France

9.2

4.6

12.1

25.9

23.5

—

25.9

97.0

19.8

60.8

Netherlands

6.4

1.2

15.6

23.2

19.5

—

23.2

16.6

20.1

10.5

Spain

4.2

5.9

8.4

18.5

17.4

3.8

22.3

6.9

19.7

6.8

United Kingdom

6.2

0.1

16.4

22.7

21.4

—

22.7

275.6

18.4

192.8

South Korea

1.0

0.9

3.7

5.6

5.5

16.5

22.1

8.6

19.7

11.4

Italy

2.2

10.1

4.9

17.2

16.7

—

17.2

6.1

18.6

4.0

(1) Included in total cross-border claims on third parties.

(2) Commitments (not included in total cross-border outstandings) include legally binding cross-border letters of credit and other commitments and contingencies as defined by the FFIEC. Effective March 31, 2006 the FFIEC revised the definition of commitments to include commitments to local residents that will be funded with local currency local liabilities.

INTEREST REVENUE/EXPENSE AND YIELDS

Average Rates-Interest Revenue, Interest Expense, and Net Interest Margin

*In millions of dollars*	2nd Qtr. 2007(1)			1st Qtr. 2007			2nd Qtr. 2006			% Change 2Q07 vs. 2Q06
Interest Revenue(2)	$	30,598		$	28,132		$	23,572		30	%
Interest Expense(3)	19,172			17,562			13,717			40	%
Net Interest Revenue(2)	$	11,426		$	10,570		$	9,855		16	%

Interest Revenue—Average Rate	6.43		%	6.55		%	6.52		%	(9	) bps
Interest Expense—Average Rate	4.43		%	4.55		%	4.24		%	19	bps
Net Interest Margin (NIM)	2.40		%	2.46		%	2.73		%	(33	) bps

Interest Rate Benchmarks:
Federal Funds Rate—End of Period	5.25		%	5.25		%	5.25		%	—

2 Year U.S. Treasury Note—Average Rate	4.80		%	4.76		%	4.99		%	(19	) bps
10 Year U.S. Treasury Note—Average Rate	4.85		%	4.68		%	5.07		%	(22	) bps
10 Year vs. 2 Year Spread	5		bps	(8		) bps	8		bps

(1) The 2007 second quarter includes Nikko Cordial from May 9, 2007 forward. Excluding Nikko Cordial, the average rate on Interest-Earning Assets and Interest-Bearing Liabilities would have been 6.56% and 4.51%, respectively. Net Interest Revenue as a percentage of Average Interest-Earning Assets (NIM) would have been 2.45% in the second quarter of 2007.

(2) Excludes taxable equivalent adjustment (based on the U.S. Federal statutory tax rate of 35%) of $45 million, $15 million, and $25 million for the second quarter of 2007, the first quarter of 2007, and the second quarter of 2006, respectively.

(3) Excludes expenses associated with hybrid financial instruments and beneficial interest in consolidated VIEs. These obligations are classified as Long-Term Debt and accounted for at fair value with changes recorded in Principal Transactions.

A significant portion of the Company’s business activities are based upon gathering deposits and borrowing money and then lending or investing those funds, including market-making activities in tradable securities. Net interest margin is calculated by dividing gross interest revenue less gross interest expense by average interest earning assets.

During 2007, pressure on net interest margin continued. Net Interest Margin was mainly impacted by the results of Nikko Cordial, consolidated from May 9, 2007 forward. The average rate on assets reflected a highly competitive loan pricing environment, as well as a shift in the Company’s loan portfolio from higher-yielding credit card receivables to assets that carry lower yields, such as mortgages and home equity loans.

See pages 31 – 37 for a detailed analysis of Average Rates and Volumes.

AVERAGE BALANCES AND INTEREST RATES—ASSETS(1)(2)(3)(4)

	Average Volume						Interest Revenue						% Average Rate
*In millions of dollars*	2nd Qtr. 2007		1st Qtr. 2007		2nd Qtr. 2006		2nd Qtr. 2007		1st Qtr. 2007		2nd Qtr. 2006		2nd Qtr. 2007		1st Qtr. 2007		2nd Qtr. 2006
Assets
Deposits with banks(5)	$	55,580	$	45,306	$	38,951	$	792	$	709	$	517	5.72	%	6.35	%	5.32	%
Federal funds sold and securities borrowed or purchased under agreements to resell(6)
In U.S. offices	$	185,143	$	184,069	$	163,276	$	3,002	$	2,879	$	2,450	6.50	%	6.34	%	6.02	%
In offices outside the U.S.(5)	135,668		109,226		87,806		1,660		1,410		947		4.91		5.24		4.33
Total	$	320,811	$	293,295	$	251,082	$	4,662	$	4,289	$	3,397	5.83	%	5.93	%	5.43	%
Trading account assets(7)(8)
In U.S. offices	$	264,112	$	236,977	$	181,415	$	3,111	$	2,822	$	2,173	4.72	%	4.83	%	4.80	%
In offices outside the U.S.(5)	180,361		133,274		99,644		1,274		1,108		875		2.83		3.37		3.52
Total	$	444,473	$	370,251	$	281,059	$	4,385	$	3,930	$	3,048	3.96	%	4.30	%	4.35	%
Investments(1)
In U.S. offices
Taxable	$	149,303	$	160,372	$	85,292	$	1,860	$	2,000	$	873	5.00	%	5.06	%	4.11	%
Exempt from U.S. income tax	18,971		16,810		15,470		273		190		182		5.77		4.58		4.72
In offices outside the U.S.(5)	113,068		107,079		97,138		1,444		1,350		1,200		5.12		5.11		4.95
Total	$	281,342	$	284,261	$	197,900	$	3,577	$	3,540	$	2,255	5.10	%	5.05	%	4.57	%
Loans (net of unearned income)(9)
Consumer loans
In U.S. offices	$	370,762	$	362,860	$	339,997	$	7,663	$	7,458	$	7,071	8.29	%	8.34	%	8.34	%
In offices outside the U.S.(5)	170,855		151,523		136,648		4,621		4,033		3,834		10.85		10.79		11.25
Total consumer loans	$	541,617	$	514,383	$	476,645	$	12,284	$	11,491	$	10,905	9.10	%	9.06	%	9.18	%
Corporate loans
In U.S. offices	$	31,075	$	28,685	$	25,740	$	608	$	538	$	440	7.85	%	7.61	%	6.86	%
In offices outside the U.S.(5)	152,545		136,103		122,944		3,361		2,906		2,298		8.84		8.66		7.50
Total corporate loans	$	183,620	$	164,788	$	148,684	$	3,969	$	3,444	$	2,738	8.67	%	8.48	%	7.39	%
Total loans	$	725,237	$	679,171	$	625,329	$	16,253	$	14,935	$	13,643	8.99	%	8.92	%	8.75	%
Other interest-earning assets	$	82,459	$	68,379	$	55,081	$	929	$	729	$	712	4.52	%	4.32	%	5.18	%
Total interest-earning assets	$	1,909,902	$	1,740,663	$	1,449,402	$	30,598	$	28,132	$	23,572	6.43	%	6.55	%	6.52	%
Non-interest-earning assets(7)	249,358		204,255		195,670
Total assets from discontinued operations	—		—		—
Total assets	$	2,159,260	$	1,944,918	$	1,645,072

(1) Interest revenue excludes the taxable equivalent adjustments (based on the U.S. federal statutory tax rate of 35%) of $45 million, $15 million, and $25 million for the second quarter of 2007, the first quarter of 2007, and the second quarter of 2006, respectively.

(2) Interest rates and amounts include the effects of risk management activities associated with the respective asset and liability categories. See Note 15 on page 69

(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 on page 53.

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

(6) Average volumes of securities borrowed or purchased under agreements to resell are reported net pursuant to FIN 41 and interest revenue excludes the impact of FIN 41.

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

(8) Interest expense on trading account liabilities of Markets & Banking 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.

(9) Includes cash-basis loans.

Reclassified to conform to the current period’s presentation.

AVERAGE BALANCES AND INTEREST RATES—LIABILITIES AND EQUITY,

AND NET INTEREST REVENUE(1)(2)(3)(4)

	Average Volume						Interest Expense						% Average Rate
*In millions of dollars*	2nd Qtr. 2007		1st Qtr. 2007		2nd Qtr. 2006		2nd Qtr. 2007		1st Qtr. 2007		2nd Qtr. 2006		2ndQtr. 2007		1st Qtr. 2007		2nd Qtr. 2006
Liabilities
Deposits
In U. S. offices
Savings deposits(5)	$	147,517	$	145,259	$	133,958	$	1,178	$	1,170	$	1,002	3.20	%	3.27	%	3.00	%
Other time deposits	53,597		54,946		45,292		861		807		579		6.44		5.96		5.13
In offices outside the U.S.(6)	485,871		448,074		394,805		4,900		4,581		3,623		4.05		4.15		3.68
Total	$	686,985	$	648,279	$	574,055	$	6,939	$	6,558	$	5,204	4.05	%	4.10	%	3.64	%
Federal funds purchased and securities loaned or sold under agreements to repurchase(7)
In U.S. offices	$	233,021	$	237,732	$	187,346	$	3,600	$	3,541	$	2,955	6.20	%	6.04	%	6.33	%
In offices outside the U.S.(6)	152,984		128,641		97,408		2,312		1,942		1,364		6.06		6.12		5.62
Total	$	386,005	$	366,373	$	284,754	$	5,912	$	5,483	$	4,319	6.14	%	6.07	%	6.08	%
Trading account liabilities(8)(9)
In U.S. offices	$	58,139	$	42,319	$	35,503	$	312	$	235	$	227	2.15	%	2.25	%	2.56	%
In offices outside the U.S.(6)	62,949		45,340		39,364		68		72		54		0.43		0.64		0.55
Total	$	121,088	$	87,659	$	74,867	$	380	$	307	$	281	1.26	%	1.42	%	1.51	%
Short-term borrowings
In U.S. offices	$	170,962	$	143,544	$	118,686	$	1,612	$	1,262	$	972	3.78	%	3.57	%	3.28	%
In offices outside the U.S.(6)	66,077		40,835		25,501		325		202		157		1.97		2.01		2.47
Total	$	237,039	$	184,379	$	144,187	$	1,937	$	1,464	$	1,129	3.28	%	3.22	%	3.14	%
Long-term debt (10)
In U.S. offices	$	267,496	$	252,833	$	194,096	$	3,562	$	3,385	$	2,476	5.34	%	5.43	%	5.12	%
In offices outside the U.S.(6)	37,391		27,084		24,273		442		365		308		4.74		5.47		5.09
Total	$	304,887	$	279,917	$	218,369	$	4,004	$	3,750	$	2,784	5.27	%	5.43	%	5.11	%
Total interest-bearing liabilities	$	1,736,004	$	1,566,607	$	1,296,232	$	19,172	$	17,562	$	13,717	4.43	%	4.55	%	4.24	%
Demand deposits in U.S. offices	11,234		11,157		11,827
Other non-interest bearing liabilities(8)	287,371		247,402		222,581
Total liabilities from discontinued operations	—		—		—
Total liabilities	$	2,034,609	$	1,825,166	$	1,530,640
Total stockholders’ equity(11)	$	124,651	$	119,752	$	114,432
Total liabilities and stockholders’ equity	$	2,159,260	$	1,944,918	$	1,645,072

Net interest revenue as a percentage of average interest-earning assets(12)
In U.S. offices	$	1,087,398	$	1,049,574	$	859,063	$	5,212	$	4,976	$	4,673	1.92	%	1.92	%	2.18	%
In offices outside the U.S.(6)	822,504		691,089		590,339		6,214		5,594		5,182		3.03	%	3.28		3.52
Total	$	1,909,902	$	1,740,663	$	1,449,402	$	11,426	$	10,570	$	9,855	2.40	%	2.46	%	2.73	%

(2) Interest rates and amounts include the effects of risk management activities associated with the respective asset and liability categories. See Note 15 on page 69

(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 on page 53.

(5) Savings deposits consist of Insured Money Market Rate accounts, NOW accounts, and other savings deposits.

(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 and interest expense excludes the impact of FIN 41.

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

(9) Interest expense on trading account liabilities of Markets & Banking 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.

(10) Excludes hybrid financial instruments and beneficial interests in consolidated VIEs that are classified as long-term debt as these obligations are accounted for at fair value with changes 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.

Reclassified to conform to the current period’s presentation.

AVERAGE BALANCES AND INTEREST RATES—ASSETS(1)(2)(3)(4)

	Average Volume				Interest Revenue				% Average Rate
*In millions of dollars*	Six Months 2007		Sixth Months 2006		Six Months 2007		Sixth Months 2006		Six Months 2007		Sixth Months 2006
Assets
Deposits with banks(5)	$	50,443	$	36,901	$	1,501	$	1,006	6.00	%	5.50	%
Federal funds sold and securities borrowed or purchased under agreements to resell(6)
In U.S. offices	$	184,606	$	161,301	$	5,881	$	4,805	6.42	%	6.01	%
In offices outside the U.S.(5)	122,447		84,758		3,070		1,797		5.06		4.28
Total	$	307,053	$	246,059	$	8,951	$	6,602	5.88	%	5.41	%
Trading account assets(7)(8)
In U.S. offices	$	250,545	$	179,098	$	5,933	$	4,059	4.78	%	4.57	%
In offices outside the U.S.(5)	156,817		94,306		2,382		1,689		3.06		3.61
Total	$	407,362	$	273,404	$	8,315	$	5,748	4.12	%	4.24	%
Investments(1)
In U.S. offices
Taxable	$	154,838	$	85,115	$	3,860	$	1,657	5.03	%	3.93	%
Exempt from U.S. income tax	17,891		14,789		463		335		5.22		4.57
In offices outside the U.S.(5)	110,073		94,785		2,794		2,319		5.12		4.93
Total	$	282,802	$	194,689	$	7,117	$	4,311	5.07	%	4.47	%
Loans (net of unearned income)(9)
Consumer loans
In U.S. offices	$	366,811	$	333,511	$	15,121	$	13,733	8.31	%	8.30	%
In offices outside the U.S.(5)	161,189		134,007		8,654		7,524		10.83		11.32
Total consumer loans	$	528,000	$	467,518	$	23,775	$	21,257	9.08	%	9.17	%
Corporate loans
In U.S. offices	$	29,880	$	26,460	$	1,146	$	871	7.73	%	6.64	%
In offices outside the U.S.(5)	144,324		117,453		6,267		4,333		8.76		7.44
Total corporate loans	$	174,204	$	143,913	$	7,413	$	5,204	8.58	%	7.29	%
Total loans	$	702,204	$	611,431	$	31,188	$	26,461	8.96	%	8.73	%
Other interest-earning assets	$	75,419	$	57,144	$	1,658	$	1,317	4.43	%	4.65	%
Total interest-earning assets	$	1,825,283	$	1,419,628	$	58,730	$	45,445	6.49	%	6.46	%
Non-interest-earning assets(7)	226,806		188,976
Total assets from discontinued operations	—		—
Total assets	$	2,052,089	$	1,608,604

(1) Interest revenue excludes the taxable equivalent adjustments (based on the U.S. federal statutory tax rate of 35%) of $60 million, $54 million for the first six months of 2007 and 2006, respectively.

(2) Interest rates and amounts include the effects of risk management activities associated with the respective asset and liability categories. See Note 15 on page 69.

(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 on page 53.

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

(6) Average volumes of securities borrowed or purchased under agreements to resell are reported net pursuant to FIN 41 and interest revenue excludes the impact of FIN 41.

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

(9) Includes cash-basis loans.

Reclassified to conform to the current period’s presentation.

AVERAGE BALANCES AND INTEREST RATES—LIABILITIES AND EQUITY,

AND NET INTEREST REVENUE(1)(2)(3)(4)

	Average Volume				Interest Expense				% Average Rate
*In millions of dollars*	Six Months 2007		Sixth Months 2006		Six Months 2007		Sixth Months 2006		Six Months 2007		Sixth Months 2006
Liabilities
Deposits
In U. S. offices
Savings deposits(5)	$	146,388	$	133,112	$	2,348	$	1,870	3.23	%	2.83	%
Other time deposits	54,272		43,851		1,668		1,078		6.20		4.96
In offices outside the U.S.(6)	466,972		382,613		9,481		6,761		4.09		3.56
Total	$	667,632	$	559,576	$	13,497	$	9,709	4.08	%	3.50	%
Federal funds purchased and securities loaned or sold under agreements to repurchase(7)
In U.S. offices	$	235,377	$	186,247	$	7,141	$	5,631	6.12	%	6.10	%
In offices outside the U.S.(6)	140,812		92,747		4,254		2,587		6.09		5.62
Total	$	376,189	$	278,994	$	11,395	$	8,218	6.11	%	5.94	%
Trading account liabilities(8)(9)
In U.S. offices	$	50,229	$	35,386	$	547	$	419	2.20	%	2.39	%
In offices outside the U.S.(6)	54,145		37,925		140		105		0.52		0.56
Total	$	104,374	$	73,311	$	687	$	524	1.33	%	1.44	%
Short-term borrowings
In U.S. offices	$	157,253	$	116,019	$	2,874	$	1,737	3.69	%	3.02	%
In offices outside the U.S.(6)	53,456		21,840		527		357		1.99		3.30
Total	$	210,709	$	137,859	$	3,401	$	2,094	3.25	%	3.06	%
Long-term debt(10)
In U.S. offices	$	260,165	$	192,936	$	6,947	$	4,665	5.38	%	4.88	%
In offices outside the U.S.(6)	32,237		24,130		807		614		5.05		5.13
Total	$	292,402	$	217,066	$	7,754	$	5,279	5.35	%	4.90	%
Total interest-bearing liabilities	$	1,651,306	$	1,266,806	$	36,734	$	25,824	4.49	%	4.11	%
Demand deposits in U.S. offices	11,196		10,936
Other non-interest bearing liabilities(8)	267,385		217,084
Total liabilities from discontinued operations	—		—
Total liabilities	$	1,929,887	$	1,494,826
Total stockholders’ equity(11)	$	122,202	$	113,778
Total liabilities and stockholders’ equity	$	2,052,089	$	1,608,604

Net interest revenue as a percentage of average interest-earning assets(12)
In U.S. offices	$	1,068,486	$	848,074	$	10,188	$	9,613	1.92	%	2.29	%
In offices outside the U.S.(6)	756,797		571,554		11,808		10,008		3.15		3.53
Total	$	1,825,283	$	1,419,628	$	21,996	$	19,621	2.43	%	2.79	%

(1) Interest revenue the taxable equivalent adjustments (based on the U.S. federal statutory tax rate of 35%) of $60 million, $54 million for the first six months of 2007 and 2006, respectively.