EX-99.1 2 a08-17863_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

CITIGROUP - QUARTERLY FINANCIAL DATA SUPPLEMENT

 

HISTORICAL

 

 

 

Page Number

Citigroup Consolidated

 

 

Financial Summary

 

1

Consolidated Statement of Income

 

2

Consolidated Balance Sheet

 

3

Segment Income:

 

 

Product View

 

4

Regional View

 

5

Segment Net Revenues:

 

 

Product View

 

6

Regional View

 

7

Segment Detail

 

 

Global Cards

 

8 - 10

Consumer Banking

 

11 -14

Institutional Clients Group (ICG)

 

15

Securities and Banking

 

16

Transaction Services

 

17

Global Wealth Management

 

18 - 19

 

 

 

Regional Detail

 

 

North America

 

20

EMEA

 

21

Latin America

 

22

Asia

 

23 -24

 

 

 

Citigroup Supplemental Detail

 

 

Return on Capital

 

25

Average Balances and Interest Rates

 

26

Consumer Loan Delinquency Amounts, Net Credit Losses and Ratios

 

27

Allowance for Credit Losses:

 

 

Total Citigroup

 

28

Consumer Loans

 

29

Corporate Loans

 

30

Components of Provision for Loan Losses

 

31

Non-Performing Assets

 

32

 



 

CITIGROUP – FINANCIAL SUMMARY
(In millions of dollars, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full

 

Full

 

Full

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

Year

 

Year

 

Year

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenues, Net of Interest Expense

 

$

21,888

 

$

21,890

 

$

21,130

 

$

23,545

 

$

25,184

 

$

26,330

 

$

22,190

 

$

7,003

 

$

13,020

 

$

82,147

 

$

88,453

 

$

80,707

 

Total Operating Expenses

 

13,156

 

12,558

 

11,726

 

13,753

 

15,373

 

14,691

 

14,416

 

16,352

 

16,071

 

44,341

 

51,193

 

60,832

 

Provision for Loan Losses and for Benefits and Claims

 

1,664

 

1,793

 

2,134

 

2,343

 

2,950

 

2,710

 

5,048

 

7,739

 

5,976

 

9,041

 

7,934

 

18,447

 

Income Taxes

 

1,512

 

2,289

 

1,987

 

2,227

 

1,846

 

2,663

 

527

 

(7,320

)

(3,883

)

8,857

 

8,015

 

(2,284

)

Minority Interest

 

60

 

31

 

46

 

152

 

47

 

123

 

20

 

95

 

(21

)

549

 

289

 

285

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Continuing Operations

 

$

5,496

 

$

5,219

 

$

5,237

 

$

5,070

 

$

4,968

 

$

6,143

 

$

2,179

 

$

(9,863

)

$

(5,123

)

$

19,359

 

$

21,022

 

$

3,427

 

Discontinued Operations, After-tax

 

143

 

46

 

268

 

59

 

44

 

83

 

33

 

30

 

12

 

5,279

 

516

 

190

 

Cumulative Effect of Accounting Change

 

 

 

 

 

 

 

 

 

 

(49

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

5,639

 

$

5,265

 

$

5,505

 

$

5,129

 

$

5,012

 

$

6,226

 

$

2,212

 

$

(9,833

)

$

(5,111

)

$

24,589

 

$

21,538

 

$

3,617

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings Per Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Continuing Operations

 

$

1.09

 

$

1.04

 

$

1.05

 

$

1.02

 

$

1.00

 

$

1.23

 

$

0.43

 

$

(2.00

)

$

(1.02

)

$

3.74

 

$

4.20

 

$

0.68

 

Net Income (Loss)

 

$

1.12

 

$

1.05

 

$

1.10

 

$

1.03

 

$

1.01

 

$

1.24

 

$

0.44

 

$

(1.99

)(1)

$

(1.02

)(1)

$

4.75

 

$

4.31

 

$

0.72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares (in millions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Basic

 

4,920.7

 

4,899.0

 

4,875.5

 

4,853.8

 

4,877.0

 

4,898.3

 

4,916.1

 

4,931.9

 

5,085.6

 

5,067.6

 

4,887.3

 

4,905.8

 

Average Diluted

 

5,007.9

 

4,990.0

 

4,978.6

 

4,967.7

 

4,967.9

 

4,992.9

 

5,010.9

 

5,009.3

 

5,591.1

 

5,160.4

 

4,986.1

 

4,995.3

 

Common Shares Outstanding, at period end

 

4,971.2

 

4,943.9

 

4,913.7

 

4,912.0

 

4,946.4

 

4,974.6

 

4,981.1

 

4,994.6

 

5,249.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Dividends - Basic (in millions)

 

$

16

 

$

16

 

$

16

 

$

16

 

$

16

 

$

14

 

$

6

 

$

 

$

83

 

$

68

 

$

64

 

$

36

 

Preferred Dividends - Diluted (in millions)

 

$

16

 

$

16

 

$

16

 

$

16

 

$

16

 

$

14

 

$

6

 

$

 

$

17

 

$

68

 

$

64

 

$

36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Capital Ratio

 

8.60

%

8.51

%

8.64

%

8.59

%

8.26

%

7.91

%

7.32

%

7.12

%

7.74

%

 

 

 

 

 

 

Total Capital Ratio

 

11.60

%

11.68

%

11.88

%

11.65

%

11.48

%

11.23

%

10.61

%

10.70

%

11.22

%

 

 

 

 

 

 

Leverage Ratio

 

5.22

%

5.19

%

5.24

%

5.16

%

4.84

%

4.37

%

4.13

%

4.03

%

4.39

%

 

 

 

 

 

 

Return on Common Equity

 

20.3

%

18.6

%

18.9

%

17.2

%

17.1

%

20.1

%

6.9

%

(32.4

)%

(18.6

)%

22.3

%

18.8

%

2.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Data, EOP (in billions, except Book Value per Share):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

1,586.2

 

$

1,626.6

 

$

1,746.2

 

$

1,884.3

 

$

2,021.0

 

$

2,220.9

 

$

2,358.3

 

$

2,187.6

 

$

2,199.8

 

 

 

 

 

 

 

Trading Account Assets

 

328.1

 

327.9

 

351.1

 

393.9

 

460.1

 

538.3

 

581.2

 

539.0

 

578.4

 

 

 

 

 

 

 

Total Loans

 

605.3

 

637.1

 

655.4

 

679.2

 

693.3

 

742.9

 

774.0

 

778.0

 

789.8

 

 

 

 

 

 

 

Total Deposits

 

627.4

 

645.8

 

669.3

 

712.0

 

738.5

 

771.8

 

812.9

 

826.2

 

831.2

 

 

 

 

 

 

 

Stockholders’ Equity

 

114.4

 

115.4

 

117.9

 

119.8

 

122.1

 

127.8

 

127.1

 

113.6

 

128.2

 

 

 

 

 

 

 

Equity and Trust Securities

 

120.6

 

122.0

 

125.9

 

129.4

 

131.5

 

137.8

 

138.7

 

137.2

 

152.2

 

 

 

 

 

 

 

Book Value Per Share

 

$

22.82

 

$

23.15

 

$

23.78

 

$

24.18

 

$

24.48

 

$

25.56

 

$

25.48

 

$

22.74

 

$

20.73

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct Staff (in thousands)

 

304

 

313

 

320

 

327

 

343

 

361

 

371

 

375

 

369

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment Net Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

$

1,220

 

$

1,199

 

$

1,370

 

$

1,214

 

$

1,257

 

$

1,057

 

$

1,450

 

$

945

 

$

1,239

 

$

4,086

 

$

5,003

 

$

4,709

 

Consumer Banking

 

1,730

 

1,888

 

1,717

 

1,284

 

1,258

 

1,473

 

197

 

(442

)

138

 

6,102

 

6,619

 

2,486

 

Institutional Clients Group

 

2,346

 

2,026

 

1,880

 

2,359

 

2,917

 

3,384

 

267

 

(10,723

)

(6,357

)

8,595

 

8,611

 

(4,155

)

Global Wealth Management

 

287

 

346

 

399

 

411

 

448

 

512

 

490

 

524

 

294

 

1,244

 

1,443

 

1,974

 

Corporate/Other

 

(87

)

(240

)

(129

)

(198

)

(912

)

(283

)

(225

)

(167

)

(437

)

(668

)

(654

)

(1,587

)

Discontinued Operations

 

143

 

46

 

268

 

59

 

44

 

83

 

33

 

30

 

12

 

5,279

 

516

 

190

 

Cumulative Effect of Accounting Change

 

 

 

 

 

 

 

 

 

 

(49

)

 

 

Total Net Income

 

$

5,639

 

$

5,265

 

$

5,505

 

$

5,129

 

$

5,012

 

$

6,226

 

$

2,212

 

$

(9,833

)

$

(5,111

)

$

24,589

 

$

21,538

 

$

3,617

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regional Net Income(2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

2,992

 

$

3,230

 

$

3,131

 

$

3,278

 

$

3,244

 

$

3,397

 

$

481

 

$

(8,947

)

$

(5,586

)

$

11,951

 

$

12,631

 

$

(1,825

)

Europe, Middle East and Africa (EMEA)

 

821

 

553

 

701

 

655

 

779

 

992

 

29

 

(3,149

)

(1,060

)

1,511

 

2,730

 

(1,349

)

Latin America

 

709

 

690

 

686

 

730

 

785

 

787

 

1,084

 

939

 

1,195

 

2,789

 

2,815

 

3,595

 

Asia

 

1,061

 

986

 

848

 

605

 

1,072

 

1,250

 

810

 

1,461

 

765

 

3,776

 

3,500

 

4,593

 

Corporate/Other

 

(87

)

(240

)

(129

)

(198

)

(912

)

(283

)

(225

)

(167

)

(437

)

(668

)

(654

)

(1,587

)

Discontinued Operations

 

143

 

46

 

268

 

59

 

44

 

83

 

33

 

30

 

12

 

5,279

 

516

 

190

 

Cumulative Effect of Accounting Change

 

 

 

 

 

 

 

 

 

 

(49

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Net Income

 

$

5,639

 

$

5,265

 

$

5,505

 

$

5,129

 

$

5,012

 

$

6,226

 

$

2,212

 

$

(9,833

)

$

(5,111

)

$

24,589

 

$

21,538

 

$

3,617

 

 


(1)  Diluted shares used in the Diluted EPS calculation represent Basic Shares for the fourth quarter of 2007 and the first quarter of 2008 due to the Net Loss.  Using actual Diluted shares would result in anti-dilution.

(2)  Asia includes Japan, Latin America includes Mexico, and North America includes U.S., Canada and Puerto Rico.

 

Reclassified to conform to the current period’s presentation.

 

1



 

CITIGROUP CONSOLIDATED STATEMENT OF INCOME
(In millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full

 

Full

 

Full

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

Year

 

Year

 

Year

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

2005

 

2006

 

2007

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest revenue

 

$

21,609

 

$

23,292

 

$

24,457

 

$

25,985

 

$

27,872

 

$

30,369

 

$

32,747

 

$

32,350

 

$

29,702

 

$

74,852

 

$

95,343

 

$

123,338

 

Interest expense

 

11,932

 

13,532

 

14,702

 

16,024

 

17,344

 

18,971

 

20,593

 

19,789

 

16,303

 

36,124

 

56,190

 

76,697

 

Net interest revenue

 

9,677

 

9,760

 

9,755

 

9,961

 

10,528

 

11,398

 

12,154

 

12,561

 

13,399

 

38,728

 

39,153

 

46,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commissions and fees

 

5,136

 

5,256

 

3,916

 

4,920

 

5,599

 

6,628

 

4,050

 

4,842

 

1,668

 

16,910

 

19,228

 

21,119

 

Principal transactions

 

2,165

 

1,773

 

2,014

 

2,047

 

3,168

 

2,629

 

(244

)

(17,632

)

(6,661

)

6,656

 

7,999

 

(12,079

)

Administrative and other fiduciary fees

 

1,705

 

1,707

 

1,670

 

1,852

 

1,949

 

2,241

 

2,468

 

2,514

 

2,317

 

6,119

 

6,934

 

9,172

 

Realized gains (losses) from sales of investments

 

379

 

302

 

304

 

806

 

473

 

119

 

263

 

313

 

(119

)

1,962

 

1,791

 

1,168

 

Insurance premiums

 

769

 

800

 

819

 

812

 

838

 

845

 

893

 

956

 

983

 

3,127

 

3,200

 

3,532

 

Other revenue

 

2,057

 

2,292

 

2,652

 

3,147

 

2,629

 

2,470

 

2,606

 

3,449

 

1,433

 

8,645

 

10,148

 

11,154

 

Total non-interest revenues

 

12,211

 

12,130

 

11,375

 

13,584

 

14,656

 

14,932

 

10,036

 

(5,558

)

(379

)

43,419

 

49,300

 

34,066

 

Total revenues, net of interest expense

 

21,888

 

21,890

 

21,130

 

23,545

 

25,184

 

26,330

 

22,190

 

7,003

 

13,020

 

82,147

 

88,453

 

80,707

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provisions for Credit Losses and for Benefits and Claims

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

1,387

 

1,412

 

1,810

 

2,108

 

2,689

 

2,513

 

4,762

 

7,398

 

5,701

 

7,924

 

6,717

 

17,362

 

Policyholder benefits and claims

 

227

 

231

 

274

 

235

 

261

 

197

 

236

 

241

 

275

 

867

 

967

 

935

 

Provision for unfunded lending commitments

 

50

 

150

 

50

 

 

 

 

50

 

100

 

 

250

 

250

 

150

 

Total provisions for credit losses and for benefits and claims

 

1,664

 

1,793

 

2,134

 

2,343

 

2,950

 

2,710

 

5,048

 

7,739

 

5,976

 

9,041

 

7,934

 

18,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

8,236

 

7,339

 

6,690

 

7,895

 

8,671

 

8,896

 

7,709

 

9,064

 

9,060

 

25,654

 

30,160

 

34,340

 

Net occupancy expense

 

1,382

 

1,411

 

1,435

 

1,613

 

1,529

 

1,603

 

1,748

 

1,800

 

1,788

 

5,141

 

5,841

 

6,680

 

Technology / communication expense

 

886

 

934

 

948

 

994

 

979

 

1,143

 

1,166

 

1,245

 

1,226

 

3,524

 

3,762

 

4,533

 

Advertising and marketing expense

 

603

 

651

 

573

 

734

 

617

 

767

 

799

 

751

 

679

 

2,532

 

2,561

 

2,934

 

Restructuring-related items

 

 

 

 

 

1,377

 

63

 

35

 

53

 

15

 

 

 

1,528

 

Other operating

 

2,049

 

2,223

 

2,080

 

2,517

 

2,200

 

2,219

 

2,959

 

3,439

 

3,303

 

7,490

 

8,869

 

10,817

 

Total operating expenses

 

13,156

 

12,558

 

11,726

 

13,753

 

15,373

 

14,691

 

14,416

 

16,352

 

16,071

 

44,341

 

51,193

 

60,832

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Continuing Operations before Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxes and Minority Interest

 

7,068

 

7,539

 

7,270

 

7,449

 

6,861

 

8,929

 

2,726

 

(17,088

)

(9,027

)

28,765

 

29,326

 

1,428

 

Provision (benefits) for income taxes

 

1,512

 

2,289

 

1,987

 

2,227

 

1,846

 

2,663

 

527

 

(7,320

)

(3,883

)

8,857

 

8,015

 

(2,284

)

Minority interest, net of income taxes

 

60

 

31

 

46

 

152

 

47

 

123

 

20

 

95

 

(21

)

549

 

289

 

285

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Continuing Operations

 

5,496

 

5,219

 

5,237

 

5,070

 

4,968

 

6,143

 

2,179

 

(9,863

)

(5,123

)

19,359

 

21,022

 

3,427

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Discontinued Operations

 

85

 

57

 

125

 

73

 

60

 

129

 

44

 

40

 

4

 

1,576

 

340

 

273

 

Gain on Sale

 

21

 

 

198

 

 

 

 

 

 

 

6,790

 

219

 

 

Provision for income taxes and minority interest, net of taxes

 

(37

)

11

 

55

 

14

 

16

 

46

 

11

 

10

 

(8

)

3,087

 

43

 

83

 

Income from Discontinued Operations, net

 

143

 

46

 

268

 

59

 

44

 

83

 

33

 

30

 

12

 

5,279

 

516

 

190

 

Cumulative Effect of Accounting Change (3)

 

 

 

 

 

 

 

 

 

 

(49

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

5,639

 

$

5,265

 

$

5,505

 

$

5,129

 

$

5,012

 

$

6,226

 

$

2,212

 

$

(9,833

)

$

(5,111

)

$

24,589

 

$

21,538

 

$

3,617

 

 


(1)   Discontinued Operations includes:

a)           The Company’s January 31, 2005 announced agreement for the sale of Citigroup’s Travelers Life & Annuity, and substantially all of Citigroup’s international insurance business to MetLife, Inc.

b)          The Company’s June 24, 2005 announced agreement for the sale of substantially all of Citigroup’s Asset Management business to Legg Mason, Inc.

c)           The Company’s April 17, 2008 announced agreement for the sale of substantially all of Citigroup’s CitiCapital equipment finance unit to General Electric.

d)          A 2006 first quarter tax contingency reserve release of $44 million related to Travelers Property Casualty Corp, which the Company spun off during 2002.

 

Reclassified to conform to the current period’s presentation.

 

2



 

CITIGROUP CONSOLIDATED BALANCE SHEET
(In millions of dollars)

 

 

 

March 31,

 

June 30,

 

September 30,

 

December 31,

 

March 31,

 

June 30,

 

September 30,

 

December 31,

 

March 31,

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks (including segregated cash and other deposits)

 

$

21,411

 

$

24,311

 

$

22,543

 

$

26,514

 

$

24,421

 

$

30,635

 

$

38,226

 

$

38,206

 

$

30,837

 

Deposits with banks

 

33,220

 

35,868

 

33,939

 

42,522

 

44,906

 

70,897

 

58,713

 

69,366

 

73,318

 

Federal funds sold and securities borrowed or purchased under agreements to resell

 

239,552

 

234,390

 

262,627

 

282,817

 

303,925

 

348,129

 

383,217

 

274,066

 

239,006

 

Brokerage receivables

 

42,569

 

46,162

 

40,970

 

44,445

 

51,976

 

61,144

 

69,062

 

57,359

 

65,653

 

Trading account assets

 

328,135

 

327,890

 

351,149

 

393,925

 

460,065

 

538,316

 

581,220

 

538,984

 

578,437

 

Investments

 

193,970

 

194,953

 

251,748

 

273,591

 

286,567

 

257,880

 

240,828

 

215,008

 

204,155

 

Loans, net of unearned income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

462,068

 

480,772

 

488,673

 

512,921

 

519,105

 

551,223

 

570,891

 

592,307

 

596,987

 

Corporate

 

143,239

 

156,313

 

166,709

 

166,271

 

174,239

 

191,701

 

203,078

 

185,686

 

192,856

 

Loans, net of unearned income

 

605,307

 

637,085

 

655,382

 

679,192

 

693,344

 

742,924

 

773,969

 

777,993

 

789,843

 

Allowance for loan losses

 

(9,505

)

(9,144

)

(8,979

)

(8,940

)

(9,510

)

(10,381

)

(12,728

)

(16,117

)

(18,257

)

Total loans, net

 

595,802

 

627,941

 

646,403

 

670,252

 

683,834

 

732,543

 

761,241

 

761,876

 

771,586

 

Goodwill

 

32,933

 

32,910

 

33,169

 

33,415

 

34,380

 

39,231

 

39,949

 

41,204

 

43,622

 

Intangible assets

 

15,092

 

15,850

 

15,725

 

15,901

 

19,330

 

22,975

 

23,651

 

22,687

 

23,945

 

Other assets

 

83,517

 

86,276

 

87,975

 

100,936

 

111,562

 

119,116

 

162,159

 

168,875

 

169,289

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,586,201

 

$

1,626,551

 

$

1,746,248

 

$

1,884,318

 

$

2,020,966

 

$

2,220,866

 

$

2,358,266

 

$

2,187,631

 

$

2,199,848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits in U.S. offices

 

$

37,885

 

$

38,018

 

$

36,358

 

$

38,615

 

$

39,296

 

$

41,740

 

$

38,842

 

$

40,859

 

$

43,779

 

Interest-bearing deposits in U.S. offices

 

176,032

 

177,385

 

183,467

 

195,002

 

198,840

 

196,481

 

211,147

 

225,198

 

226,285

 

Non-interest-bearing deposits in offices outside the U.S.

 

34,323

 

32,981

 

32,721

 

35,149

 

36,328

 

39,132

 

43,052

 

43,335

 

45,230

 

Interest-bearing deposits in offices outside the U.S.

 

379,118

 

397,421

 

416,732

 

443,275

 

464,057

 

494,408

 

519,809

 

516,838

 

515,914

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits

 

627,358

 

645,805

 

669,278

 

712,041

 

738,521

 

771,761

 

812,850

 

826,230

 

831,208

 

Federal funds purchased and securities loaned or sold under agreements to repurchase

 

279,540

 

264,494

 

320,095

 

349,235

 

393,670

 

394,143

 

440,369

 

304,243

 

279,561

 

Brokerage payables

 

70,214

 

74,970

 

97,229

 

85,119

 

88,722

 

96,528

 

94,830

 

84,951

 

95,597

 

Trading account liabilities

 

144,888

 

142,983

 

138,876

 

145,887

 

173,902

 

217,992

 

215,623

 

182,082

 

201,986

 

Short-term borrowings

 

58,130

 

72,581

 

70,501

 

100,833

 

111,179

 

167,139

 

194,304

 

146,488

 

135,799

 

Long-term debt

 

227,165

 

239,557

 

260,089

 

288,494

 

310,768

 

340,077

 

364,526

 

427,112

 

424,959

 

Other liabilities (1)

 

64,488

 

70,733

 

72,315

 

82,926

 

82,121

 

105,472

 

108,651

 

102,927

 

102,519

 

Total liabilities

 

1,471,783

 

1,511,123

 

1,628,383

 

1,764,535

 

1,898,883

 

2,093,112

 

2,231,153

 

2,074,033

 

2,071,629

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock

 

1,000

 

1,000

 

1,000

 

1,000

 

1,000

 

600

 

200

 

 

19,384

 

Common Stock

 

55

 

55

 

55

 

55

 

55

 

55

 

55

 

55

 

55

 

Additional paid-in capital

 

17,119

 

17,426

 

17,825

 

18,253

 

17,341

 

17,725

 

18,297

 

18,007

 

11,131

 

Retained earnings

 

120,703

 

123,497

 

126,544

 

129,267

 

131,395

 

134,932

 

134,445

 

121,920

 

115,050

 

Treasury stock

 

(21,753

)

(23,199

)

(24,737

)

(25,092

)

(23,833

)

(22,588

)

(22,329

)

(21,724

)

(10,020

)

Accumulated other comprehensive income (loss)

 

(2,706

)

(3,351

)

(2,822

)

(3,700

)

(3,875

)

(2,970

)

(3,555

)

(4,660

)

(7,381

)

Total stockholders’ equity

 

114,418

 

115,428

 

117,865

 

119,783

 

122,083

 

127,754

 

127,113

 

113,598

 

128,219

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

1,586,201

 

$

1,626,551

 

$

1,746,248

 

$

1,884,318

 

$

2,020,966

 

$

2,220,866

 

$

2,358,266

 

$

2,187,631

 

$

2,199,848

 

 


(1)           Includes allowance for credit losses for letters of credit and unfunded lending commitments of $900 million, $1,050 million, $1,100 million, and $1,100 million for the first, second, third, and fourth quarters of 2006, respectively and $1,100 million for the first and second quarters of 2007, $1,150 million for the third quarter of 2007 and $1,250 million for the fourth quarter of 2007, respectively, and $1,250 million for the first quarter of 2008.

 

Reclassified to conform to the current period’s presentation.

 

3



 

CITIGROUP —  NET INCOME
PRODUCT VIEW
(In millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full

 

Full

 

Full

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

Year

 

Year

 

Year

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Cards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

928

 

$

882

 

$

1,088

 

$

989

 

$

872

 

$

711

 

$

808

 

$

322

 

$

537

 

$

2,721

 

$

3,887

 

$

2,713

 

EMEA

 

33

 

41

 

54

 

18

 

45

 

53

 

38

 

131

 

55

 

183

 

146

 

267

 

Latin America

 

185

 

211

 

144

 

112

 

235

 

184

 

563

 

251

 

516

 

672

 

652

 

1,233

 

Asia

 

74

 

65

 

84

 

95

 

105

 

109

 

41

 

241

 

131

 

510

 

318

 

496

 

Total Global Cards

 

1,220

 

1,199

 

1,370

 

1,214

 

1,257

 

1,057

 

1,450

 

945

 

1,239

 

4,086

 

5,003

 

4,709

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

949

 

1,067

 

1,037

 

949

 

750

 

891

 

59

 

(920

)

(333

)

3,642

 

4,002

 

780

 

EMEA

 

151

 

165

 

151

 

84

 

33

 

89

 

13

 

72

 

1

 

180

 

551

 

207

 

Latin America

 

187

 

215

 

233

 

368

 

169

 

183

 

102

 

206

 

271

 

796

 

1,003

 

660

 

Asia

 

443

 

441

 

296

 

(117

)

306

 

310

 

23

 

200

 

199

 

1,484

 

1,063

 

839

 

Total Consumer Banking

 

1,730

 

1,888

 

1,717

 

1,284

 

1,258

 

1,473

 

197

 

(442

)

138

 

6,102

 

6,619

 

2,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional Clients Group (ICG):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

887

 

992

 

664

 

990

 

1,261

 

1,461

 

(720

)

(8,735

)

(5,955

)

4,446

 

3,533

 

(6,733

)

EMEA

 

634

 

342

 

489

 

545

 

694

 

804

 

(26

)

(3,372

)

(1,142

)

1,140

 

2,010

 

(1,900

)

Latin America

 

326

 

252

 

297

 

237

 

366

 

391

 

407

 

466

 

382

 

1,260

 

1,112

 

1,630

 

Asia

 

499

 

440

 

430

 

587

 

596

 

728

 

606

 

918

 

358

 

1,749

 

1,956

 

2,848

 

Total Institutional Clients Group (ICG):

 

2,346

 

2,026

 

1,880

 

2,359

 

2,917

 

3,384

 

267

 

(10,723

)

(6,357

)

8,595

 

8,611

 

(4,155

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Wealth Management:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

228

 

289

 

342

 

350

 

361

 

334

 

334

 

386

 

165

 

1,142

 

1,209

 

1,415

 

EMEA

 

3

 

5

 

7

 

8

 

7

 

46

 

4

 

20

 

26

 

8

 

23

 

77

 

Latin America

 

11

 

12

 

12

 

13

 

15

 

29

 

12

 

16

 

26

 

61

 

48

 

72

 

Asia

 

45

 

40

 

38

 

40

 

65

 

103

 

140

 

102

 

77

 

33

 

163

 

410

 

Total Global Wealth Management

 

287

 

346

 

399

 

411

 

448

 

512

 

490

 

524

 

294

 

1,244

 

1,443

 

1,974

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate / Other

 

(87

)

(240

)

(129

)

(198

)

(912

)

(283

)

(225

)

(167

)

(437

)

(668

)

(654

)

(1,587

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) From Continuing Operations

 

5,496

 

5,219

 

5,237

 

5,070

 

4,968

 

6,143

 

2,179

 

(9,863

)

(5,123

)

19,359

 

21,022

 

3,427

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

143

 

46

 

268

 

59

 

44

 

83

 

33

 

30

 

12

 

5,279

 

516

 

190

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative Effect of Accounting Change

 

 

 

 

 

 

 

 

 

 

(49

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

5,639

 

$

5,265

 

$

5,505

 

$

5,129

 

$

5,012

 

$

6,226

 

$

2,212

 

$

(9,833

)

$

(5,111

)

$

24,589

 

$

21,538

 

$

3,617

 

 

Reclassified to conform to the current period’s presentation.

 

4



 

CITIGROUP –  NET INCOME
REGIONAL VIEW
(In millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full

 

Full

 

Full

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

Year

 

Year

 

Year

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

$

928

 

$

882

 

$

1,088

 

$

989

 

$

872

 

$

711

 

$

808

 

$

322

 

$

537

 

$

2,721

 

$

3,887

 

$

2,713

 

Consumer Banking

 

949

 

1,067

 

1,037

 

949

 

750

 

891

 

59

 

(920

)

(333

)

3,642

 

4,002

 

780

 

Institutional Clients Group

 

887

 

992

 

664

 

990

 

1,261

 

1,461

 

(720

)

(8,735

)

(5,955

)

4,446

 

3,533

 

(6,733

)

Securities & Banking

 

872

 

967

 

624

 

971

 

1,227

 

1,409

 

(780

)

(8,785

)

(6,034

)

4,342

 

3,434

 

(6,929

)

Transaction Services

 

15

 

25

 

40

 

19

 

34

 

52

 

60

 

50

 

79

 

104

 

99

 

196

 

Global Wealth Management

 

228

 

289

 

342

 

350

 

361

 

334

 

334

 

386

 

165

 

1,142

 

1,209

 

1,415

 

Total North America

 

2,992

 

3,230

 

3,131

 

3,278

 

3,244

 

3,397

 

481

 

(8,947

)

(5,586

)

11,951

 

12,631

 

(1,825

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

33

 

41

 

54

 

18

 

45

 

53

 

38

 

131

 

55

 

183

 

146

 

267

 

Consumer Banking

 

151

 

165

 

151

 

84

 

33

 

89

 

13

 

72

 

1

 

180

 

551

 

207

 

Institutional Clients Group

 

634

 

342

 

489

 

545

 

694

 

804

 

(26

)

(3,372

)

(1,142

)

1,140

 

2,010

 

(1,900

)

Securities & Banking

 

529

 

236

 

375

 

407

 

544

 

631

 

(205

)

(3,543

)

(1,364

)

817

 

1,547

 

(2,573

)

Transaction Services

 

105

 

106

 

114

 

138

 

150

 

173

 

179

 

171

 

222

 

323

 

463

 

673

 

Global Wealth Management

 

3

 

5

 

7

 

8

 

7

 

46

 

4

 

20

 

26

 

8

 

23

 

77

 

Total EMEA

 

821

 

553

 

701

 

655

 

779

 

992

 

29

 

(3,149

)

(1,060

)

1,511

 

2,730

 

(1,349

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

185

 

211

 

144

 

112

 

235

 

184

 

563

 

251

 

516

 

672

 

652

 

1,233

 

Consumer Banking

 

187

 

215

 

233

 

368

 

169

 

183

 

102

 

206

 

271

 

796

 

1,003

 

660

 

Institutional Clients Group

 

326

 

252

 

297

 

237

 

366

 

391

 

407

 

466

 

382

 

1,260

 

1,112

 

1,630

 

Securities & Banking

 

262

 

187

 

229

 

176

 

289

 

301

 

297

 

334

 

250

 

1,033

 

854

 

1,221

 

Transaction Services

 

64

 

65

 

68

 

61

 

77

 

90

 

110

 

132

 

132

 

227

 

258

 

409

 

Global Wealth Management

 

11

 

12

 

12

 

13

 

15

 

29

 

12

 

16

 

26

 

61

 

48

 

72

 

Total Latin America

 

709

 

690

 

686

 

730

 

785

 

787

 

1,084

 

939

 

1,195

 

2,789

 

2,815

 

3,595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

74

 

65

 

84

 

95

 

105

 

109

 

41

 

241

 

131

 

510

 

318

 

496

 

Consumer Banking

 

443

 

441

 

296

 

(117

)

306

 

310

 

23

 

200

 

199

 

1,484

 

1,063

 

839

 

Institutional Clients Group

 

499

 

440

 

430

 

587

 

596

 

728

 

606

 

918

 

358

 

1,749

 

1,956

 

2,848

 

Securities & Banking

 

358

 

295

 

266

 

426

 

409

 

527

 

364

 

604

 

59

 

1,255

 

1,345

 

1,904

 

Transaction Services

 

141

 

145

 

164

 

161

 

187

 

201

 

242

 

314

 

299

 

494

 

611

 

944

 

Global Wealth Management

 

45

 

40

 

38

 

40

 

65

 

103

 

140

 

102

 

77

 

33

 

163

 

410

 

Total Asia

 

1,061

 

986

 

848

 

605

 

1,072

 

1,250

 

810

 

1,461

 

765

 

3,776

 

3,500

 

4,593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate / Other

 

(87

)

(240

)

(129

)

(198

)

(912

)

(283

)

(225

)

(167

)

(437

)

(668

)

(654

)

(1,587

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) From Continuing Operations

 

5,496

 

5,219

 

5,237

 

5,070

 

4,968

 

6,143

 

2,179

 

(9,863

)

(5,123

)

19,359

 

21,022

 

3,427

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

143

 

46

 

268

 

59

 

44

 

83

 

33

 

30

 

12

 

5,279

 

516

 

190

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative Effect of Accounting Change

 

 

 

 

 

 

 

 

 

 

(49

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

5,639

 

$

5,265

 

$

5,505

 

$

5,129

 

$

5,012

 

$

6,226

 

$

2,212

 

$

(9,833

)

$

(5,111

)

$

24,589

 

$

21,538

 

$

3,617

 

 

Reclassified to conform to the current period’s presentation.

 

5



 

CITIGROUP — NET REVENUES
PRODUCT VIEW
(In millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full

 

Full

 

Full

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

Year

 

Year

 

Year

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Cards:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

3,327

 

$

3,353

 

$

3,552

 

$

3,673

 

$

3,407

 

$

3,298

 

$

3,510

 

$

3,678

 

$

3,343

 

$

13,186

 

$

13,905

 

$

13,893

 

EMEA

 

295

 

329

 

329

 

355

 

377

 

506

 

599

 

600

 

622

 

1,279

 

1,308

 

2,082

 

Latin America

 

511

 

689

 

724

 

802

 

867

 

990

 

1,728

 

1,218

 

1,776

 

1,632

 

2,726

 

4,803

 

Asia

 

490

 

505

 

477

 

504

 

513

 

531

 

538

 

818

 

675

 

1,989

 

1,976

 

2,400

 

Total Global Cards

 

4,623

 

4,876

 

5,082

 

5,334

 

5,164

 

5,325

 

6,375

 

6,314

 

6,416

 

18,086

 

19,915

 

23,178

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

3,649

 

3,933

 

3,956

 

3,988

 

4,058

 

4,224

 

4,164

 

4,545

 

4,485

 

15,225

 

15,526

 

16,991

 

EMEA

 

977

 

1,031

 

1,025

 

1,049

 

1,070

 

1,113

 

1,141

 

1,247

 

1,241

 

3,926

 

4,082

 

4,571

 

Latin America

 

827

 

854

 

848

 

1,211

 

946

 

996

 

1,071

 

1,172

 

1,048

 

3,234

 

3,740

 

4,185

 

Asia

 

1,453

 

1,520

 

1,485

 

852

 

1,458

 

1,475

 

1,442

 

1,422

 

1,558

 

5,654

 

5,310

 

5,797

 

Total Consumer Banking

 

6,906

 

7,338

 

7,314

 

7,100

 

7,532

 

7,808

 

7,818

 

8,386

 

8,332

 

28,039

 

28,658

 

31,544

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional Clients Group (ICG):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

3,582

 

3,380

 

2,330

 

3,740

 

4,245

 

4,026

 

110

 

(11,421

)

(7,824

)

13,320

 

13,032

 

(3,040

)

EMEA

 

2,296

 

2,043

 

2,166

 

2,253

 

2,827

 

2,993

 

1,398

 

(2,983

)

133

 

6,849

 

8,758

 

4,235

 

Latin America

 

779

 

711

 

793

 

808

 

965

 

985

 

1,103

 

1,153

 

1,012

 

2,829

 

3,091

 

4,206

 

Asia

 

1,428

 

1,331

 

1,257

 

1,750

 

1,616

 

2,257

 

2,006

 

2,460

 

1,721

 

4,922

 

5,766

 

8,339

 

Total Institutional Clients Group (ICG):

 

8,085

 

7,465

 

6,546

 

8,551

 

9,653

 

10,261

 

4,617

 

(10,791

)

(4,958

)

27,920

 

30,647

 

13,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Wealth Management:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

2,153

 

2,148

 

2,152

 

2,337

 

2,385

 

2,441

 

2,455

 

2,509

 

2,376

 

7,628

 

8,790

 

9,790

 

EMEA

 

75

 

83

 

83

 

90

 

108

 

137

 

139

 

159

 

170

 

294

 

331

 

543

 

Latin America

 

75

 

80

 

80

 

83

 

91

 

92

 

92

 

98

 

100

 

327

 

318

 

373

 

Asia

 

180

 

181

 

171

 

206

 

234

 

527

 

833

 

698

 

633

 

434

 

738

 

2,292

 

Total Global Wealth Management

 

2,483

 

2,492

 

2,486

 

2,716

 

2,818

 

3,197

 

3,519

 

3,464

 

3,279

 

8,683

 

10,177

 

12,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate / Other

 

(209

)

(281

)

(298

)

(156

)

17

 

(261

)

(139

)

(370

)

(49

)

(581

)

(944

)

(753

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Net Revenues

 

$

21,888

 

$

21,890

 

$

21,130

 

$

23,545

 

$

25,184

 

$

26,330

 

$

22,190

 

$

7,003

 

$

13,020

 

$

82,147

 

$

88,453

 

$

80,707

 

 

Reclassified to conform to the current period’s presentation.

 

6



 

CITIGROUP — NET REVENUES
REGIONAL VIEW
(In millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full

 

Full

 

Full

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

Year

 

Year

 

Year

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

$3,327

 

$3,353

 

$3,552

 

$3,673

 

$3,407

 

$3,298

 

$3,510

 

$3,678

 

$3,343

 

$13,186

 

$13,905

 

$13,893

 

Consumer Banking

 

3,649

 

3,933

 

3,956

 

3,988

 

4,058

 

4,224

 

4,164

 

4,545

 

4,485

 

15,225

 

15,526

 

16,991

 

Institutional Clients Group

 

3,582

 

3,380

 

2,330

 

3,740

 

4,245

 

4,026

 

110

 

(11,421

)

(7,824

)

13,320

 

13,032

 

(3,040

)

Securities & Banking

 

3,264

 

3,047

 

2,007

 

3,424

 

3,907

 

3,655

 

(336

)

(11,889

)

(8,317

)

12,259

 

11,742

 

(4,663

)

Transaction Services

 

318

 

333

 

323

 

316

 

338

 

371

 

446

 

468

 

493

 

1,061

 

1,290

 

1,623

 

Global Wealth Management

 

2,153

 

2,148

 

2,152

 

2,337

 

2,385

 

2,441

 

2,455

 

2,509

 

2,376

 

7,628

 

8,790

 

9,790

 

Total North America

 

12,711

 

12,814

 

11,990

 

13,738

 

14,095

 

13,989

 

10,239

 

(689

)

2,380

 

49,359

 

51,253

 

37,634

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

295

 

329

 

329

 

355

 

377

 

506

 

599

 

600

 

622

 

1,279

 

1,308

 

2,082

 

Consumer Banking

 

977

 

1,031

 

1,025

 

1,049

 

1,070

 

1,113

 

1,141

 

1,247

 

1,241

 

3,926

 

4,082

 

4,571

 

Institutional Clients Group

 

2,296

 

2,043

 

2,166

 

2,253

 

2,827

 

2,993

 

1,398

 

(2,983

)

133

 

6,849

 

8,758

 

4,235

 

Securities & Banking

 

1,808

 

1,508

 

1,629

 

1,666

 

2,229

 

2,313

 

674

 

(3,762

)

(680

)

5,093

 

6,611

 

1,454

 

Transaction Services

 

488

 

535

 

537

 

587

 

598

 

680

 

724

 

779

 

813

 

1,756

 

2,147

 

2,781

 

Global Wealth Management

 

75

 

83

 

83

 

90

 

108

 

137

 

139

 

159

 

170

 

294

 

331

 

543

 

Total EMEA

 

3,643

 

3,486

 

3,603

 

3,747

 

4,382

 

4,749

 

3,277

 

(977

)

2,166

 

12,348

 

14,479

 

11,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

511

 

689

 

724

 

802

 

867

 

990

 

1,728

 

1,218

 

1,776

 

1,632

 

2,726

 

4,803

 

Consumer Banking

 

827

 

854

 

848

 

1,211

 

946

 

996

 

1,071

 

1,172

 

1,048

 

3,234

 

3,740

 

4,185

 

Institutional Clients Group

 

779

 

711

 

793

 

808

 

965

 

985

 

1,103

 

1,153

 

1,012

 

2,829

 

3,091

 

4,206

 

Securities & Banking

 

585

 

502

 

583

 

581

 

730

 

724

 

812

 

812

 

680

 

2,119

 

2,251

 

3,078

 

Transaction Services

 

194

 

209

 

210

 

227

 

235

 

261

 

291

 

341

 

332

 

710

 

840

 

1,128

 

Global Wealth Management

 

75

 

80

 

80

 

83

 

91

 

92

 

92

 

98

 

100

 

327

 

318

 

373

 

Total Latin America

 

2,192

 

2,334

 

2,445

 

2,904

 

2,869

 

3,063

 

3,994

 

3,641

 

3,936

 

8,022

 

9,875

 

13,567

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

490

 

505

 

477

 

504

 

513

 

531

 

538

 

818

 

675

 

1,989

 

1,976

 

2,400

 

Consumer Banking

 

1,453

 

1,520

 

1,485

 

852

 

1,458

 

1,475

 

1,442

 

1,422

 

1,558

 

5,654

 

5,310

 

5,797

 

Institutional Clients Group

 

1,428

 

1,331

 

1,257

 

1,750

 

1,616

 

2,257

 

2,006

 

2,460

 

1,721

 

4,922

 

5,766

 

8,339

 

Securities & Banking

 

1,040

 

906

 

821

 

1,280

 

1,137

 

1,722

 

1,398

 

1,749

 

1,012

 

3,535

 

4,047

 

6,006

 

Transaction Services

 

388

 

425

 

436

 

470

 

479

 

535

 

608

 

711

 

709

 

1,387

 

1,719

 

2,333

 

Global Wealth Management

 

180

 

181

 

171

 

206

 

234

 

527

 

833

 

698

 

633

 

434

 

738

 

2,292

 

Total Asia

 

3,551

 

3,537

 

3,390

 

3,312

 

3,821

 

4,790

 

4,819

 

5,398

 

4,587

 

12,999

 

13,790

 

18,828

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate / Other

 

(209

)

(281

)

(298

)

(156

)

17

 

(261

)

(139

)

(370

)

(49

)

(581

)

(944

)

(753

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Net Revenues

 

$21,888

 

$21,890

 

$21,130

 

$23,545

 

$25,184

 

$26,330

 

$22,190

 

$7,003

 

$13,020

 

$82,147

 

$88,453

 

$80,707

 

 

Reclassified to conform to the current period’s presentation.

 

7



 

GLOBAL CARDS
Page 1
(In millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full

 

Full

 

Full

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

Year

 

Year

 

Year

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Revenue

 

$

2,065

 

$

2,189

 

$

2,228

 

$

2,315

 

$

2,301

 

$

2,680

 

$

2,740

 

$

3,028

 

$

2,727

 

$

8,428

 

$

8,797

 

$

10,749

 

Non-Interest Revenue

 

2,558

 

2,687

 

2,854

 

3,019

 

2,863

 

2,645

 

3,635

 

3,286

 

3,689

 

9,658

 

11,118

 

12,429

 

Total Revenues, Net of Interest Expense (1)

 

4,623

 

4,876

 

5,082

 

5,334

 

5,164

 

5,325

 

6,375

 

6,314

 

6,416

 

18,086

 

19,915

 

23,178

 

Total Operating Expenses

 

2,257

 

2,361

 

2,272

 

2,478

 

2,412

 

2,490

 

2,624

 

3,095

 

2,610

 

8,654

 

9,368

 

10,621

 

Net Credit Losses

 

692

 

811

 

842

 

887

 

870

 

850

 

1,049

 

1,123

 

1,252

 

3,551

 

3,232

 

3,892

 

Credit Reserve Build / (Release)

 

13

 

(137

)

(65

)

43

 

(9

)

425

 

506

 

653

 

623

 

(56

)

(146

)

1,575

 

Provision for Benefits & Claims

 

20

 

25

 

26

 

18

 

20

 

13

 

20

 

15

 

20

 

 

89

 

68

 

Provision for Loan Losses and for Benefits and Claims

 

725

 

699

 

803

 

948

 

881

 

1,288

 

1,575

 

1,791

 

1,895

 

3,495

 

3,175

 

5,535

 

Income Before Taxes and Minority Interest

 

1,641

 

1,816

 

2,007

 

1,908

 

1,871

 

1,547

 

2,176

 

1,428

 

1,911

 

5,937

 

7,372

 

7,022

 

Income Taxes and Minority Interest

 

421

 

617

 

637

 

694

 

614

 

490

 

726

 

483

 

672

 

1,851

 

2,369

 

2,313

 

Net Income

 

$

1,220

 

$

1,199

 

$

1,370

 

$

1,214

 

$

1,257

 

$

1,057

 

$

1,450

 

$

945

 

$

1,239

 

$

4,086

 

$

5,003

 

$

4,709

 

Average Assets (in billions of dollars)

 

$

95

 

$

98

 

$

101

 

$

101

 

$

105

 

$

110

 

$

114

 

$

124

 

$

124

 

$

96

 

$

99

 

$

113

 

Return on Assets

 

5.21

%

4.91

%

5.38

%

4.77

%

4.86

%

3.85

%

5.05

%

3.02

%

4.02

%

4.26

%

5.05

%

4.17

%

Net Credit Loss Ratio

 

3.94

%

4.37

%

4.44

%

4.67

%

4.70

%

4.26

%

5.00

%

4.78

%

5.39

%

 

 

 

 

 

 

Average Risk Capital

 

$

7,909

 

$

8,060

 

$

8,084

 

$

8,099

 

$

8,216

 

$

8,417

 

$

8,738

 

$

9,412

 

$

14,799

 

$

7,742

 

$

8,038

 

$

8,696

 

Return on Risk Capital

 

63

%

60

%

67

%

59

%

62

%

50

%

66

%

40

%

34

%

53

%

62

%

54

%

Return on Invested Capital

 

27

%

26

%

29

%

25

%

26

%

22

%

29

%

18

%

18

%

22

%

27

%

24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY INDICATORS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EOP Open Accounts (in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

133.6

 

146.9

 

153.7

 

155.9

 

152.6

 

150.1

 

149.1

 

151.9

 

148.6

 

 

 

 

 

 

 

EMEA

 

5.6

 

5.7

 

5.8

 

6.0

 

6.3

 

8.7

 

8.9

 

9.1

 

9.5

 

 

 

 

 

 

 

Latin America

 

6.4

 

9.5

 

9.8

 

10.2

 

11.7

 

12.0

 

12.4

 

12.9

 

12.9

 

 

 

 

 

 

 

Asia

 

14.6

 

14.8

 

15.1

 

14.7

 

13.8

 

14.1

 

14.3

 

15.4

 

15.7

 

 

 

 

 

 

 

Total

 

160.2

 

176.9

 

184.4

 

186.8

 

184.4

 

184.9

 

184.7

 

189.3

 

186.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase Sales (in billions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

69.8

 

$

79.3

 

$

78.4

 

$

82.5

 

$

73.8

 

$

83.5

 

$

83.1

 

$

89.3

 

$

76.9

 

 

 

 

 

 

 

EMEA

 

3.3

 

3.8

 

3.9

 

4.4

 

4.3

 

6.4

 

7.5

 

8.3

 

7.6

 

 

 

 

 

 

 

Latin America

 

3.8

 

4.8

 

5.6

 

6.5

 

5.8

 

6.8

 

7.4

 

8.4

 

8.2

 

 

 

 

 

 

 

Asia

 

10.3

 

11.1

 

11.1

 

12.1

 

11.6

 

12.6

 

13.1

 

14.8

 

14.7

 

 

 

 

 

 

 

Total

 

$

87.2

 

$

99.0

 

$

99.0

 

$

105.5

 

$

95.5

 

$

109.3

 

$

111.1

 

$

120.8

 

$

107.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Managed Loans (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America (managed basis)

 

$

142.0

 

$

143.0

 

$

145.7

 

$

145.1

 

$

144.3

 

$

143.2

 

$

145.3

 

$

150.5

 

$

152.7

 

 

 

 

 

 

 

EMEA

 

6.1

 

6.5

 

6.7

 

7.4

 

7.8

 

12.1

 

14.8

 

15.8

 

16.4

 

 

 

 

 

 

 

Latin America

 

6.5

 

7.6

 

8.5

 

9.3

 

10.2

 

11.7

 

12.3

 

13.5

 

14.1

 

 

 

 

 

 

 

Asia

 

11.7

 

12.0

 

12.3

 

12.9

 

13.2

 

13.9

 

14.8

 

16.0

 

17.1

 

 

 

 

 

 

 

Total

 

$

166.3

 

$

169.1

 

$

173.2

 

$

174.7

 

$

175.5

 

$

180.9

 

$

187.2

 

$

195.8

 

$

200.3

 

 

 

 

 

 

 

 


(1)      The 2006 first quarter, 2006 second quarter, 2006 third quarter, 2006 fourth quarter, 2007 first quarter, 2007 second quarter, 2007 third quarter, 2007 fourth quarter and 2008 first quarter include releases of $90 million, $125 million, $109 million, $74 million, $98 million, $144 million, $73 million, $157 million and $58 million, respectively, from the allowance for credit losses related to loan receivables that were either securitized or transferred to loans held-for-sale during the quarter.

 

(2)      Managed basis is applicable only in North America, as securitizations are not done in any other region.
Managed basis presentation includes results from both the on-balance sheet loans and off- balance sheet loans, and excludes the impact of card securitization activity.
Managed disclosures assume that securitized loans have not been sold and present the results of the securitized loans in the same manner as the Company’s owned loans. 

 

Reclassified to conform to the current period’s presentation.

 

8



 

GLOBAL CARDS
Page 2
(In millions of dollars)

 

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY INDICATORS (continued) (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed Average Yield

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America (managed basis)

 

14.05

%

13.74

%

13.92

%

14.00

%

14.21

%

14.17

%

14.40

%

13.87

%

13.41

%

EMEA

 

16.34

%

16.81

%

17.23

%

17.23

%

17.67

%

16.34

%

16.10

%

15.28

%

15.62

%

Latin America

 

29.23

%

29.80

%

29.31

%

29.72

%

28.28

%

29.24

%

28.68

%

26.27

%

28.44

%

Asia

 

14.06

%

13.82

%

13.48

%

13.73

%

13.72

%

14.04

%

13.78

%

13.89

%

13.82

%

Global Total

 

14.75

%

14.59

%

14.78

%

14.96

%

15.13

%

15.27

%

15.41

%

14.83

%

14.67

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed Net Interest Revenue as a % of Average Managed Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America (managed basis)

 

10.38

%

9.81

%

10.19

%

10.28

%

10.07

%

10.28

%

10.50

%

10.07

%

10.09

%

EMEA

 

13.41

%

13.96

%

13.75

%

13.46

%

13.28

%

13.99

%

13.05

%

11.65

%

12.28

%

Latin America

 

16.69

%

20.55

%

20.71

%

21.47

%

21.25

%

23.90

%

23.26

%

21.13

%

22.93

%

Asia

 

10.45

%

9.96

%

9.15

%

9.58

%

10.17

%

10.49

%

10.16

%

10.21

%

10.04

%

Global Total

 

10.74

%

10.47

%

10.77

%

10.96

%

10.86

%

11.43

%

11.52

%

10.97

%

11.17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coincident Managed Net Credit Loss Ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America (managed basis)

 

3.85

%

4.06

%

4.21

%

4.31

%

4.60

%

4.51

%

4.51

%

5.10

%

5.81

%

EMEA

 

4.20

%

7.32

%

3.25

%

4.68

%

3.21

%

2.71

%

4.79

%

0.81

%

3.53

%

Latin America

 

4.53

%

6.00

%

7.99

%

8.29

%

8.75

%

6.84

%

9.65

%

9.01

%

10.25

%

Asia

 

2.85

%

3.40

%

3.85

%

3.73

%

3.19

%

3.32

%

3.11

%

3.06

%

3.17

%

Global Total

 

3.82

%

4.22

%

4.33

%

4.50

%

4.67

%

4.45

%

4.76

%

4.85

%

5.71

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed Net Credit Margin as a % of Average Managed Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America (managed basis)

 

8.08

%

7.52

%

7.51

%

7.95

%

7.48

%

7.43

%

8.03

%

7.67

%

7.14

%

EMEA

 

15.47

%

13.09

%

16.11

%

14.43

%

16.46

%

14.02

%

11.25

%

14.29

%

11.72

%

Latin America

 

27.18

%

30.59

%

25.64

%

25.81

%

25.89

%

26.98

%

46.08

%

26.73

%

40.43

%

Asia

 

14.17

%

13.42

%

11.54

%

11.79

%

12.53

%

12.02

%

11.32

%

17.27

%

12.69

%

Global Total

 

9.53

%

9.19

%

9.02

%

9.46

%

9.32

%

9.49

%

11.04

%

10.30

%

10.33

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed Loans 90+ Days Past Due as a % of EOP Managed Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America (managed basis)

 

1.72

%

1.58

%

1.60

%

1.62

%

1.57

%

1.47

%

1.60

%

1.77

%

1.96

%

EMEA

 

2.35

%

1.51

%

2.09

%

1.59

%

1.91

%

1.99

%

1.79

%

1.52

%

1.61

%

Latin America

 

3.00

%

3.58

%

4.04

%

3.84

%

3.39

%

3.79

%

3.67

%

3.92

%

3.75

%

Asia

 

1.69

%

2.06

%

1.78

%

1.54

%

1.59

%

1.43

%

1.43

%

1.50

%

1.49

%

Global Total

 

1.79

%

1.71

%

1.75

%

1.73

%

1.70

%

1.66

%

1.74

%

1.88

%

2.02

%

 


(1)             Managed basis is applicable only in North America, as securitizations are not done in any other region.
Managed basis presentation includes results from both the on-balance sheet loans and off- balance sheet loans, and excludes the impact of card securitization activity.
Managed disclosures assume that securitized loans have not been sold and present the results of the securitized loans in the same manner as the Company’s owned loans.

 

Reclassified to conform to the current period’s presentation.

 

9



 

GLOBAL CARDS

Page 3

North America

(In millions of dollars)

 

 

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

 

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE - MANAGED BASIS (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed Revenues: (in millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total GAAP Revenues

 

 

 

$

3,327

 

$

3,353

 

$

3,552

 

$

3,673

 

$

3,407

 

$

3,298

 

$

3,510

 

$

3,678

 

$

3,343

 

Net Impact of Cardit Card Securitization Activity (2)

 

 

 

870

 

818

 

795

 

849

 

929

 

998

 

1,124

 

1,200

 

1,610

 

Total Managed Revenues

 

 

 

$

4,197

 

$

4,171

 

$

4,347

 

$

4,522

 

$

4,336

 

$

4,296

 

$

4,634

 

$

4,878

 

$

4,953

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Managed Assets

 

 

 

2.45

%

2.29

%

2.74

%

2.51

%

2.26

%

1.84

%

2.04

%

0.79

%

1.32

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Managed Loans

 

Securitized

 

$

94.7

 

$

94.6

 

$

97.5

 

$

99.2

 

$

97.4

 

$

97.6

 

$

101.0

 

$

99.8

 

$

105.8

 

(in billions of dollars)

 

Held for Sale

 

0.3

 

 

0.5

 

0.2

 

3.0

 

3.3

 

3.0

 

2.7

 

1.0

 

 

 

On Balance Sheet

 

47.0

 

48.4

 

47.7

 

45.7

 

43.9

 

42.3

 

41.3

 

48.0

 

45.9

 

 

 

Total

 

$

142.0

 

$

143.0

 

$

145.7

 

$

145.1

 

$

144.3

 

$

143.2

 

$

145.3

 

$

150.5

 

$

152.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Citi Branded

 

$

93.3

 

$

93.8

 

$

94.6

 

$

93.4

 

$

92.6

 

$

91.6

 

$

92.4

 

$

95.3

 

$

96.8

 

 

 

Retail Partners

 

48.7

 

49.2

 

51.1

 

51.7

 

51.7

 

51.6

 

52.9

 

55.2

 

55.9

 

 

 

Total

 

$

142.0

 

$

143.0

 

$

145.7

 

$

145.1

 

$

144.3

 

$

143.2

 

$

145.3

 

$

150.5

 

$

152.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EOP Managed Loans

 

Citi Branded

 

$

92.8

 

$

94.7

 

$

94.4

 

$

95.3

 

$

91.6

 

$

92.9

 

$

93.6

 

$

98.7

 

$

96.3

 

 

 

Retail Partners

 

47.7

 

50.9

 

51.6

 

54.1

 

50.9

 

52.3

 

53.8

 

57.9

 

54.4

 

 

 

Total

 

$

140.5

 

$

145.6

 

$

146.0

 

$

149.4

 

$

142.5

 

$

145.2

 

$

147.4

 

$

156.6

 

$

150.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed Average Yield (3)

 

Citi Branded

 

12.29

%

11.91

%

11.90

%

12.12

%

12.31

%

12.25

%

12.50

%

12.12

%

11.46

%

 

 

Retail Partners

 

17.43

%

17.24

%

17.66

%

17.39

%

17.60

%

17.59

%

17.71

%

16.90

%

16.77

%

 

 

Total

 

14.05

%

13.74

%

13.92

%

14.00

%

14.21

%

14.17

%

14.40

%

13.87

%

13.41

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed Net Interest Revenue

 

Citi Branded

 

$

2,007

 

$

1,846

 

$

1,842

 

$

1,882

 

$

1,784

 

$

1,797

 

$

1,885

 

$

1,886

 

$

1,894

 

(in millions of dollars) (4)

 

Retail Partners

 

1,628

 

1,653

 

1,901

 

1,876

 

1,798

 

1,873

 

1,962

 

1,935

 

1,935

 

 

 

Total

 

$

3,635

 

$

3,499

 

$

3,743

 

$

3,758

 

$

3,582

 

$

3,670

 

$

3,847

 

$

3,821

 

$

3,829

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed Net Interest Revenue as

 

Citi Branded

 

8.72

%

7.89

%

7.73

%

7.99

%

7.81

%

7.87

%

8.09

%

7.85

%

7.87

%

a % of Average Managed Loans

 

Retail Partners

 

13.56

%

13.48

%

14.76

%

14.40

%

14.10

%

14.56

%

14.71

%

13.91

%

13.92

%

 

 

Total

 

10.38

%

9.81

%

10.19

%

10.28

%

10.07

%

10.28

%

10.50

%

10.07

%

10.09

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed Net Credit Margin

 

Citi Branded

 

$

1,888

 

$

1,697

 

$

1,620

 

$

1,747

 

$

1,644

 

$

1,593

 

$

1,732

 

$

1,790

 

$

1,658

 

(in millions of dollars) (5)

 

Retail Partners

 

942

 

985

 

1,138

 

1,161

 

1,017

 

1,059

 

1,210

 

1,121

 

1,053

 

 

 

Total

 

$

2,830

 

$

2,682

 

$

2,758

 

$

2,908

 

$

2,661

 

$

2,652

 

$

2,942

 

$

2,911

 

$

2,711

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed Net Credit Margin as

 

Citi Branded

 

8.21

%

7.26

%

6.79

%

7.42

%

7.20

%

6.98

%

7.44

%

7.45

%

6.89

%

a % of Average Managed Loans

 

Retail Partners

 

7.84

%

8.03

%

8.84

%

8.91

%

7.98

%

8.23

%

9.07

%

8.06

%

7.58

%

 

 

Total

 

8.08

%

7.52

%

7.51

%

7.95

%

7.48

%

7.43

%

8.03

%

7.67

%

7.14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed Net Credit Losses

 

Citi Branded

 

$

712

 

$

794

 

$

873

 

$

817

 

$

876

 

$

878

 

$

900

 

$

1,034

 

$

1,187

 

 

 

Retail Partners

 

635

 

653

 

674

 

761

 

759

 

733

 

753

 

899

 

1,018

 

 

 

Total

 

$

1,347

 

$

1,447

 

$

1,547

 

$

1,578

 

$

1,635

 

$

1,611

 

$

1,653

 

$

1,933

 

$

2,205

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coincident Managed Net

 

Citi Branded

 

3.09

%

3.40

%

3.66

%

3.47

%

3.84

%

3.84

%

3.86

%

4.30

%

4.93

%

Credit Loss Ratio:

 

Retail Partners

 

5.29

%

5.32

%

5.23

%

5.84

%

5.95

%

5.70

%

5.65

%

6.46

%

7.32

%

 

 

Total

 

3.85

%

4.06

%

4.21

%

4.31

%

4.60

%

4.51

%

4.51

%

5.10

%

5.81

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed Loans 90+Days Past Due

 

Citi Branded

 

$

1,143

 

$

1,172

 

$

1,218

 

$

1,248

 

$

1,191

 

$

1,138

 

$

1,248

 

$

1,489

 

$

1,616

 

 

 

Retail Partners

 

1,273

 

1,132

 

1,111

 

1,165

 

1,045

 

997

 

1,112

 

1,286

 

1,337

 

 

 

Total

 

$

2,416

 

$

2,304

 

$

2,329

 

$

2,413

 

$

2,236

 

$

2,135

 

$

2,360

 

$

2,775

 

$

2,953

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of EOP Managed Loans

 

Citi Branded

 

1.23

%

1.24

%

1.29

%

1.31

%

1.30

%

1.22

%

1.33

%

1.51

%

1.68

%

 

 

Retail Partners

 

2.67

%

2.22

%

2.15

%

2.15

%

2.05

%

1.91

%

2.07

%

2.22

%

2.46

%

 

 

Total

 

1.72

%

1.58

%

1.60

%

1.62

%

1.57

%

1.47

%

1.60

%

1.77

%

1.96

%

 


(1)

Managed basis is applicable only in North America, as securitizations are not done in any other region.

 

Managed basis presentation includes results from both the on-balance sheet loans and off- balance sheet loans, and excludes the impact of card securitization activity.

 

Managed disclosures assume that securitized loans have not been sold and present the results of the securitized loans in the same manner as the Company’s owned loans.

 

 

(2)

Net impact of Securitization Activity includes the removal of securitization-related items that are part of GAAP revenues such as the gain on sale of credit card loans,

 

mark-to-market revenue for interests retained in securitized assets classified as Trading, and net credit losses on loans that are considered sold for GAAP purposes.

 

 

(3)

Gross interest revenue earned divided by average managed loans.

 

 

(4)

Includes certain fees that are recorded as interest revenue.

 

 

(5)

Total Revenues, net of Interest Expense, less Net Credit Losses and Policy Benefits and Claims.

 

Reclassified to conform to the current period’s presentation.

 

10



 

CONSUMER BANKING

Page 1

(In millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full

 

Full

 

Full

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

Year

 

Year

 

Year

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSUMER BANKING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Revenue

 

$

5,074

 

$

5,203

 

$

5,216

 

$

4,664

 

$

5,296

 

$

5,491

 

$

5,546

 

$

5,590

 

$

5,959

 

$

20,523

 

$

20,157

 

$

21,923

 

Non-Interest Revenue

 

1,833

 

2,135

 

2,098

 

2,436

 

2,236

 

2,317

 

2,272

 

2,796

 

2,373

 

7,516

 

8,501

 

9,621

 

Total Revenues, Net of Interest Expense

 

6,906

 

7,338

 

7,314

 

7,100

 

7,532

 

7,808

 

7,818

 

8,386

 

8,332

 

28,039

 

28,658

 

31,544

 

Total Operating Expenses

 

3,831

 

3,720

 

3,743

 

4,094

 

4,050

 

4,227

 

4,519

 

4,503

 

4,590

 

13,515

 

15,388

 

17,299

 

Net Credit Losses

 

931

 

932

 

966

 

1,155

 

1,242

 

1,224

 

1,492

 

1,869

 

2,413

 

5,098

 

3,984

 

5,827

 

Credit Reserve Build / (Release)

 

(196

)

(212

)

(9

)

(56

)

314

 

60

 

1,504

 

2,856

 

1,147

 

(401

)

(473

)

4,734

 

Provision for Benefits & Claims

 

162

 

169

 

194

 

163

 

190

 

158

 

183

 

182

 

203

 

708

 

688

 

713

 

Provision for Loan Losses and for Benefits and Claims

 

897

 

889

 

1,151

 

1,262

 

1,746

 

1,442

 

3,179

 

4,907

 

3,763

 

5,405

 

4,199

 

11,274

 

Income Before Taxes and Minority Interest

 

2,178

 

2,729

 

2,420

 

1,744

 

1,736

 

2,139

 

120

 

(1,024

)

(21

)

9,119

 

9,071

 

2,971

 

Income Taxes

 

438

 

819

 

688

 

446

 

469

 

649

 

(84

)

(592

)

(161

)

2,955

 

2,391

 

442

 

Minority Interest, Net of Tax

 

10

 

22

 

15

 

14

 

9

 

17

 

7

 

10

 

2

 

62

 

61

 

43

 

Net Income

 

$

1,730

 

$

1,888

 

$

1,717

 

$

1,284

 

$

1,258

 

$

1,473

 

$

197

 

$

(442

)

$

138

 

$

6,102

 

$

6,619

 

$

2,486

 

Average Assets (in billions of dollars)

 

$

439

 

$

456

 

$

490

 

$

546

 

$

574

 

$

602

 

$

594

 

$

587

 

$

587

 

$

411

 

$

483

 

$

589

 

Return on Assets

 

1.60

%

1.66

%

1.39

%

0.93

%

0.89

%

0.98

%

0.13

%

(0.30

)%

0.09

%

1.48

%

1.37

%

0.42

%

Average Risk Capital

 

$

17,419

 

$

17,194

 

$

17,574

 

$

18,944

 

$

20,920

 

$

22,746

 

$

21,811

 

$

20,909

 

$

28,088

 

$

18,137

 

$

17,783

 

$

21,597

 

Return on Risk Capital

 

40

%

44

%

39

%

27

%

24

%

26

%

4

%

(8

)%

2

%

34

%

37

%

12

%

Return on Invested Capital

 

19

%

21

%

19

%

14

%

13

%

14

%

2

%

(3

)%

1

%

16

%

18

%

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSUMER FINANCE JAPAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Revenue

 

$

562

 

$

586

 

$

557

 

$

(139

)

$

415

 

$

344

 

$

263

 

$

113

 

$

264

 

$

2,394

 

$

1,566

 

$

1,135

 

Non-Interest Revenue

 

3

 

(2

)

(2

)

11

 

7

 

1

 

1

 

13

 

13

 

(10

)

10

 

22

 

Total Revenues, Net of Interest Expense

 

565

 

584

 

555

 

(128

)

422

 

345

 

264

 

126

 

277

 

2,384

 

1,576

 

1,157

 

Total Operating Expenses

 

178

 

171

 

151

 

213

 

126

 

102

 

251

 

97

 

95

 

749

 

713

 

576

 

Net Credit Losses

 

215

 

242

 

277

 

266

 

302

 

302

 

324

 

314

 

317

 

985

 

1,000

 

1,242

 

Credit Reserve Build / (Release)

 

 

5

 

112

 

 

4

 

14

 

161

 

 

 

 

117

 

179

 

Provision for Benefits & Claims

 

1

 

 

(1

)

1

 

 

 

 

 

 

(1

)

1

 

 

Provision for Loan Losses and for Benefits and Claims

 

216

 

247

 

388

 

267

 

306

 

316

 

485

 

314

 

317

 

984

 

1,118

 

1,421

 

Income Before Taxes and Minority Interest

 

171

 

166

 

16

 

(608

)

(10

)

(73

)

(472

)

(285

)

(135

)

651

 

(255

)

(840

)

Income Taxes

 

51

 

50

 

(1

)

(222

)

(12

)

(33

)

(174

)

(101

)

(49

)

200

 

(122

)

(320

)

Minority Interest, Net of Tax

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

120

 

$

116

 

$

17

 

$

(386

)

$

2

 

$

(40

)

$

(298

)

$

(184

)

$

(86

)

$

451

 

$

(133

)

$

(520

)

Average Assets (in billions of dollars)

 

$

10

 

$

11

 

$

11

 

$

11

 

$

10

 

$

10

 

$

9

 

$

9

 

$

9

 

$

11

 

$

11

 

$

10

 

Return on Assets

 

4.87

%

4.23

%

0.61

%

(13.92

)%

0.08

%

(1.60

)%

(13.14

)%

(8.11

)%

(3.84

)%

4.10

%

(1.21

)%

(5.20

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSUMER BANKING EXCLUDING CONSUMER FINANCE JAPAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Revenue

 

$

4,512

 

$

4,617

 

$

4,659

 

$

4,803

 

$

4,881

 

$

5,147

 

$

5,283

 

$

5,477

 

$

5,695

 

$

18,129

 

$

18,591

 

$

20,788

 

Non-Interest Revenue

 

1,829

 

2,137

 

2,100

 

2,425

 

2,229

 

2,316

 

2,271

 

2,783

 

2,360

 

7,526

 

8,491

 

9,599

 

Total Revenues, Net of Interest Expense

 

6,341

 

6,754

 

6,759

 

7,228

 

7,110

 

7,463

 

7,554

 

8,260

 

8,055

 

25,655

 

27,082

 

30,387

 

Total Operating Expenses

 

3,653

 

3,549

 

3,592

 

3,881

 

3,924

 

4,125

 

4,268

 

4,406

 

4,495

 

12,766

 

14,675

 

16,723

 

Net Credit Losses

 

716

 

690

 

689

 

889

 

940

 

922

 

1,168

 

1,555

 

2,096

 

4,113

 

2,984

 

4,585

 

Credit Reserve Build / (Release)

 

(196

)

(217

)

(121

)

(56

)

310

 

46

 

1,343

 

2,856

 

1,147

 

(401

)

(590

)

4,555

 

Provision for Benefits & Claims

 

161

 

169

 

195

 

162

 

190

 

158

 

183

 

182

 

203

 

709

 

687

 

713

 

Provision for Loan Losses and for Benefits and Claims

 

681

 

642

 

763

 

995

 

1,440

 

1,126

 

2,694

 

4,593

 

3,446

 

4,421

 

3,081

 

9,853

 

Income Before Taxes and Minority Interest

 

2,007

 

2,563

 

2,404

 

2,352

 

1,746

 

2,212

 

592

 

(739

)

114

 

8,468

 

9,326

 

3,811

 

Income Taxes

 

387

 

769

 

689

 

668

 

481

 

682

 

90

 

(491

)

(112

)

2,755

 

2,513

 

762

 

Minority Interest, Net of Tax

 

10

 

22

 

15

 

14

 

9

 

17

 

7

 

10

 

2

 

62

 

61

 

43

 

Net Income

 

$

1,610

 

$

1,772

 

$

1,700

 

$

1,670

 

$

1,256

 

$

1,513

 

$

495

 

$

(258

)

$

224

 

$

5,651

 

$

6,752

 

$

3,006

 

Average Assets (in billions of dollars)

 

$

429

 

$

445

 

$

479

 

$

535

 

$

564

 

$

592

 

$

585

 

$

578

 

$

578

 

$

400

 

$

472

 

$

579

 

Return on Assets

 

1.52

%

1.60

%

1.41

%

1.24

%

0.90

%

1.03

%

0.34

%

-0.18

%

0.16

%

1.41

%

5.77

%

2.09

%

 

Reclassified to conform to the current period’s presentation.

 

11



 

CONSUMER BANKING

Page 2

(In millions of dollars)

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY INDICATORS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branches

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Citibank

 

3,553

 

3,612

 

3,704

 

3,862

 

3,976

 

4,098

 

4,149

 

4,327

 

4,385

 

CitiFinancial (excluding Consumer Finance Japan)

 

3,560

 

3,732

 

3,903

 

4,111

 

4,112

 

4,052

 

4,093

 

4,148

 

4,014

 

 

 

7,113

 

7,344

 

7,607

 

7,973

 

8,088

 

8,150

 

8,242

 

8,475

 

8,399

 

Consumer Finance Japan

 

325

 

324

 

324

 

135

 

51

 

51

 

51

 

51

 

41

 

Total

 

7,438

 

7,668

 

7,931

 

8,108

 

8,139

 

8,201

 

8,293

 

8,526

 

8,440

 

North America

 

3,203

 

3,251

 

3,351

 

3,439

 

3,487

 

3,432

 

3,481

 

3,544

 

3,568

 

EMEA

 

942

 

989

 

1,021

 

1,065

 

1,023

 

1,023

 

1,033

 

1,051

 

1,093

 

Latin America

 

2,051

 

2,128

 

2,223

 

2,391

 

2,510

 

2,626

 

2,651

 

2,734

 

2,634

 

Asia (excluding CF Japan)

 

917

 

976

 

1,012

 

1,078

 

1,068

 

1,069

 

1,077

 

1,146

 

1,104

 

 

 

7,113

 

7,344

 

7,607

 

7,973

 

8,088

 

8,150

 

8,242

 

8,475

 

8,399

 

Consumer Finance Japan

 

325

 

324

 

324

 

135

 

51

 

51

 

51

 

51

 

41

 

Total

 

7,438

 

7,668

 

7,931

 

8,108

 

8,139

 

8,201

 

8,293

 

8,526

 

8,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts (in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

27.4

 

27.9

 

28.2

 

28.4

 

31.5

 

30.7

 

31.5

 

31.9

 

32.7

 

EMEA

 

10.0

 

10.3

 

10.6

 

11.0

 

11.1

 

12.6

 

12.7

 

12.8

 

13.0

 

Latin America

 

15.0

 

15.7

 

16.5

 

17.1

 

18.4

 

17.4

 

18.0

 

18.8

 

18.2

 

Asia (excluding Consumer Finance Japan)

 

16.5

 

16.8

 

17.2

 

16.7

 

17.2

 

17.7

 

18.2

 

19.8

 

20.1

 

 

 

68.9

 

70.7

 

72.5

 

73.2

 

78.2

 

78.4

 

80.4

 

83.3

 

84.0

 

Consumer Finance Japan

 

1.5

 

1.5

 

1.5

 

1.4

 

1.4

 

1.3

 

1.2

 

1.2

 

1.1

 

Total

 

70.4

 

72.2

 

74.0

 

74.6

 

79.6

 

79.7

 

81.6

 

84.5

 

85.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Deposits (in billions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

97.6

 

$

99.4

 

$

104.2

 

$

111.7

 

$

117.4

 

$

118.7

 

$

120.8

 

$

122.0

 

$

122.7

 

EMEA

 

31.0

 

32.8

 

32.7

 

33.0

 

33.9

 

42.6

 

48.0

 

48.6

 

50.5

 

Latin America

 

33.1

 

32.2

 

33.4

 

33.6

 

34.3

 

38.1

 

39.0

 

40.3

 

41.4

 

Asia

 

80.4

 

81.6

 

82.4

 

83.9

 

86.6

 

87.7

 

88.8

 

92.9

 

97.7

 

Total

 

$

242.1

 

$

246.0

 

$

252.7

 

$

262.2

 

$

272.2

 

$

287.1

 

$

296.6

 

$

303.8

 

$

312.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Sales (in billions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

1.4

 

$

1.3

 

$

1.2

 

$

1.2

 

$

1.5

 

$

1.4

 

$

1.3

 

$

1.4

 

$

1.5

 

EMEA

 

5.1

 

4.7

 

4.3

 

4.8

 

6.2

 

6.6

 

6.6

 

6.6

 

5.9

 

Latin America

 

18.6

 

18.6

 

17.7

 

15.8

 

18.3

 

17.5

 

16.2

 

13.2

 

14.6

 

Asia

 

7.4

 

8.5

 

6.9

 

8.3

 

10.9

 

13.6

 

13.8

 

16.0

 

10.0

 

Total

 

$

32.5

 

$

33.1

 

$

30.1

 

$

30.1

 

$

36.9

 

$

39.1

 

$

37.9

 

$

37.3

 

$

32.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment AUMs (in billions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

31.2

 

$

31.3

 

$

32.5

 

$

34.4

 

$

34.9

 

$

37.0

 

$

37.9

 

$

37.5

 

$

34.4

 

EMEA

 

24.1

 

24.1

 

25.5

 

28.1

 

29.0

 

31.5

 

33.1

 

34.3

 

33.2

 

Latin America

 

25.6

 

26.5

 

27.6

 

28.3

 

30.2

 

32.1

 

33.4

 

33.9

 

34.5

 

Asia

 

40.0

 

40.6

 

43.3

 

46.2

 

48.1

 

52.4

 

57.1

 

59.1

 

54.3

 

Total

 

$

120.9

 

$

122.5

 

$

128.9

 

$

137.0

 

$

142.2

 

$

153.0

 

$

161.5

 

$

164.8

 

$

156.4

 

 

Reclassified to conform to the current period’s presentation.

 

12



 

CONSUMER BANKING

Page 3

(In millions of dollars)

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY INDICATORS (Continued):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans (in billions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

241.4

 

$

253.0

 

$

258.1

 

$

267.3

 

$

277.3

 

$

286.0

 

$

293.2

 

$

302.6

 

$

307.2

 

EMEA

 

27.0

 

28.9

 

29.5

 

30.7

 

31.3

 

36.0

 

38.5

 

40.5

 

41.1

 

Latin America

 

10.2

 

9.8

 

10.3

 

10.9

 

11.2

 

13.1

 

13.9

 

14.6

 

14.6

 

Asia (excluding CF Japan)

 

37.1

 

37.8

 

39.1

 

41.5

 

43.4

 

45.3

 

46.4

 

49.5

 

51.9

 

 

 

315.7

 

329.5

 

337.0

 

350.4

 

363.2

 

380.4

 

392.0

 

407.2

 

414.8

 

Consumer Finance Japan

 

9.6

 

9.9

 

9.7

 

9.5

 

9.0

 

8.5

 

8.5

 

8.5

 

8.9

 

Total

 

$

325.3

 

$

339.4

 

$

346.7

 

$

359.9

 

$

372.2

 

$

388.9

 

$

400.5

 

$

415.7

 

$

423.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EOP Loans (in billions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

247.9

 

$

255.2

 

$

261.1

 

$

272.1

 

$

280.3

 

$

288.2

 

$

298.5

 

$

303.2

 

$

306.1

 

EMEA

 

27.2

 

28.9

 

29.4

 

31.0

 

31.6

 

37.4

 

39.2

 

39.6

 

42.2

 

Latin America

 

9.9

 

9.9

 

10.4

 

11.0

 

11.7

 

13.5

 

14.1

 

14.9

 

14.6

 

Asia (excluding CF Japan)

 

36.6

 

38.2

 

40.0

 

42.4

 

44.4

 

45.8

 

47.8

 

51.1

 

52.1

 

 

 

321.6

 

332.2

 

340.9

 

356.5

 

368.0

 

384.9

 

399.6

 

408.8

 

415.0

 

Consumer Finance Japan

 

9.6

 

9.9

 

9.6

 

9.2

 

9.0

 

8.2

 

8.5

 

8.3

 

9.1

 

Total

 

$

331.2

 

$

342.1

 

$

350.5

 

$

365.7

 

$

377.0

 

$

393.1

 

$

408.1

 

$

417.1

 

$

424.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Revenue as a % of Average Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

4.59

%

4.42

%

4.25

%

4.18

%

4.29

%

4.26

%

4.16

%

4.05

%

4.29

%

EMEA

 

9.49

%

9.28

%

9.04

%

8.84

%

8.57

%

7.84

%

7.53

%

8.09

%

8.19

%

Latin America

 

22.71

%

22.68

%

23.36

%

23.57

%

22.66

%

21.15

%

20.66

%

20.50

%

20.43

%

Asia (excluding CF Japan)

 

6.32

%

6.45

%

6.28

%

6.22

%

6.18

%

6.36

%

6.47

%

6.47

%

6.49

%

 

 

5.79

%

5.61

%

5.48

%

5.43

%

5.45

%

5.43

%

5.35

%

5.34

%

5.52

%

Consumer Finance Japan

 

23.74

%

23.74

%

22.68

%

(5.80

)%

18.70

%

16.18

%

12.28

%

5.27

%

11.93

%

Total

 

6.32

%

6.14

%

5.97

%

5.14

%

5.77

%

5.67

%

5.50

%

5.34

%

5.66

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses as a % of Average Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

0.72

%

0.66

%

0.67

%

0.82

%

0.84

%

0.87

%

1.01

%

1.40

%

2.02

%

EMEA

 

2.79

%

2.42

%

2.23

%

2.79

%

3.31

%

2.29

%

2.47

%

2.67

%

2.86

%

Latin America

 

1.40

%

1.75

%

0.97

%

1.60

%

1.41

%

0.46

%

2.51

%

2.96

%

3.78

%

Asia (excluding CF Japan)

 

0.72

%

0.57

%

0.65

%

0.69

%

0.66

%

0.72

%

0.78

%

0.82

%

0.98

%

 

 

0.92

%

0.84

%

0.81

%

1.01

%

1.05

%

0.97

%

1.18

%

1.52

%

2.03

%

Consumer Finance Japan

 

9.08

%

9.80

%

11.28

%

11.11

%

13.61

%

14.20

%

15.12

%

14.66

%

14.33

%

Total

 

1.16

%

1.10

%

1.11

%

1.27

%

1.35

%

1.26

%

1.48

%

1.78

%

2.29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans 90+ Days Past Due as a % of EOP Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

1.27

%

1.21

%

1.28

%

1.34

%

1.37

%

1.49

%

1.80

%

2.13

%

2.38

%

EMEA

 

1.26

%

1.41

%

1.46

%

1.45

%

1.35

%

2.91

%

1.15

%

1.00

%

1.08

%

Latin America

 

3.85

%

3.60

%

3.50

%

3.30

%

2.96

%

2.86

%

2.96

%

3.07

%

3.98

%

Asia (excluding CF Japan)

 

0.78

%

0.68

%

0.65

%

0.58

%

0.53

%

0.53

%

0.55

%

0.54

%

0.57

%

 

 

1.29

%

1.24

%

1.29

%

1.32

%

1.31

%

1.56

%

1.63

%

1.86

%

2.08

%

Consumer Finance Japan

 

1.69

%

1.79

%

2.12

%

2.31

%

2.35

%

2.53

%

2.53

%

2.20

%

2.35

%

Total

 

1.30

%

1.25

%

1.31

%

1.35

%

1.34

%

1.58

%

1.65

%

1.86

%

2.08

%

 

Reclassified to conform to the current period’s presentation.

 

13



 

CONSUMER BANKING

Page 4

North America

(In billions of dollars)

 

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY INDICATORS (Continued):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RESIDENTIAL REAL ESTATE LENDING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans

 

$

171.8

 

$

182.0

 

$

187.0

 

$

195.3

 

$

202.2

 

$

210.2

 

$

214.2

 

$

219.5

 

$

219.9

 

EOP Loans

 

$

177.8

 

$

185.1

 

$

190.4

 

$

197.7

 

$

205.3

 

$

211.5

 

$

218.0

 

$

218.6

 

$

217.6

 

Originations (excl. CFNA/CBNA)

 

$

32.4

 

$

38.6

 

$

35.8

 

$

35.3

 

$

39.6

 

$

46.2

 

$

36.6

 

$

29.5

 

$

34.3

 

Third Party Mortgage Servicing Portfolio (EOP)

 

$

294.3

 

$

311.1

 

$

339.0

 

$

343.3

 

$

580.2

 

$

585.3

 

$

575.1

 

$

599.6

 

$

645.7

 

Net Servicing & Gain/(Loss) on Sale - (in millions of dollars)

 

$

10.5

 

$

(11.7

)

$

74.4

 

$

27.1

 

$

51.8

 

$

129.6

 

$

163.7

 

$

340.4

 

$

192.4

 

Net Interest Revenue (in millions of dollars)

 

1,088

 

1,089

 

1,078

 

1,120

 

1,217

 

1,242

 

1,228

 

1,169

 

1,311

 

% of Avg. Loans (excluding NIR for MBS & Warehouse loans)

 

2.57

%

2.40

%

2.29

%

2.28

%

2.44

%

2.37

%

2.27

%

2.11

%

2.40

%

Net Credit Losses (in millions of dollars)

 

101

 

111

 

107

 

135

 

178

 

216

 

304

 

489

 

887

 

% of Avg. Loans

 

0.24

%

0.24

%

0.23

%

0.27

%

0.36

%

0.41

%

0.56

%

0.88

%

1.62

%

Loans 90+ Days Past Due (in millions of dollars)

 

1,967

 

1,866

 

2,044

 

2,295

 

2,426

 

2,910

 

3,835

 

4,849

 

5,654

 

% of EOP Loans

 

1.11

%

1.01

%

1.07

%

1.16

%

1.18

%

1.38

%

1.76

%

2.22

%

2.60

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUTO LOANS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans

 

$

12.8

 

$

13.5

 

$

14.3

 

$

15.5

 

$

16.6

 

$

18.2

 

$

19.1

 

$

20.1

 

$

21.2

 

EOP Loans

 

$

13.1

 

$

13.8

 

$

14.8

 

$

16.1

 

$

17.7

 

$

18.7

 

$

19.5

 

$

20.9

 

$

21.4

 

Originations

 

$

2.0

 

$

2.0

 

$

2.4

 

$

2.7

 

$

3.1

 

$

2.8

 

$

2.6

 

$

3.1

 

$

2.5

 

Net Interest Revenue (in millions of dollars)

 

$

291

 

$

304

 

$

309

 

$

327

 

$

335

 

$

352

 

$

358

 

$

370

 

$

387

 

% of Avg. Loans

 

9.22

%

9.03

%

8.57

%

8.37

%

8.20

%

7.76

%

7.44

%

7.30

%

7.34

%

Net Credit Losses (in millions of dollars)

 

$

104

 

$

82

 

$

111

 

$

153

 

$

139

 

$

101

 

$

147

 

$

208

 

$

228

 

% of Avg. Loans

 

3.30

%

2.44

%

3.08

%

3.92

%

3.40

%

2.23

%

3.05

%

4.11

%

4.33

%

Loans 90+ Days Past Due (in millions of dollars)

 

$

77

 

$

85

 

$

138

 

$

165

 

$

122

 

$

176

 

$

246

 

$

285

 

$

215

 

% of EOP Loans

 

0.59

%

0.62

%

0.93

%

1.02

%

0.69

%

0.94

%

1.26

%

1.36

%

1.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STUDENT LOANS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans

 

$

24.7

 

$

24.7

 

$

23.2

 

$

21.9

 

$

22.5

 

$

20.9

 

$

21.2

 

$

22.0

 

$

24.0

 

EOP Loans

 

$

24.7

 

$

22.9

 

$

21.8

 

$

21.8

 

$

21.0

 

$

20.1

 

$

21.1

 

$

22.3

 

$

24.5

 

Originations

 

$

2.9

 

$

1.9

 

$

4.1

 

$

2.1

 

$

2.8

 

$

1.3

 

$

3.1

 

$

1.5

 

$

3.1

 

Net Interest Revenue (in millions of dollars)

 

$

104

 

$

106

 

$

88

 

$

83

 

$

85

 

$

90

 

$

87

 

$

82

 

$

80

 

% of Avg. Loans

 

1.71

%

1.86

%

1.60

%

1.51

%

1.64

%

1.80

%

1.64

%

1.46

%

1.31

%

Net Credit Losses (in millions of dollars)

 

$

2

 

$

5

 

$

6

 

$

5

 

$

4

 

$

6

 

$

8

 

$

12

 

$

13

 

% of Avg. Loans

 

0.03

%

0.09

%

0.11

%

0.09

%

0.07

%

0.12

%

0.15

%

0.21

%

0.21

%

Loans 90+ Days Past Due (in millions of dollars)

 

$

729

 

$

747

 

$

726

 

$

775

 

$

879

 

$

806

 

$

776

 

$

721

 

$

796

 

% of EOP Loans

 

2.95

%

3.26

%

3.33

%

3.56

%

4.19

%

4.01

%

3.68

%

3.23

%

3.25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERSONAL LOANS & OTHER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans

 

$

15.0

 

$

15.3

 

$

16.0

 

$

16.2

 

$

16.9

 

$

17.3

 

$

18.4

 

$

19.6

 

$

20.4

 

EOP Loans

 

$

15.0

 

$

15.6

 

$

16.0

 

$

17.7

 

$

16.9

 

$

17.8

 

$

19.0

 

$

20.2

 

$

20.4

 

Net Interest Revenue (in millions of dollars)

 

$

1,065

 

$

1,095

 

$

1,105

 

$

1,094

 

$

1,104

 

$

1,167

 

$

1,198

 

$

1,258

 

$

1,282

 

% of Avg. Loans

 

28.79

%

28.71

%

27.57

%

26.79

%

26.49

%

27.06

%

25.83

%

25.46

%

25.28

%

Net Credit Losses (in millions of dollars)

 

$

220

 

$

217

 

$

208

 

$

255

 

$

251

 

$

273

 

$

284

 

$

348

 

$

398

 

% of Avg. Loans

 

5.95

%

5.69

%

5.19

%

6.24

%

6.02

%

6.33

%

6.12

%

7.04

%

7.85

%

Loans 90+ Days Past Due (in millions of dollars)

 

$

320

 

$

304

 

$

353

 

$

387

 

$

367

 

$

361

 

$

453

 

$

520

 

$

523

 

% of EOP Loans

 

2.13

%

1.95

%

2.21

%

2.19

%

2.17

%

2.03

%

2.38

%

2.57

%

2.56

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMERCIAL LOANS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans

 

$

17.1

 

$

17.5

 

$

17.7

 

$

18.4

 

$

19.1

 

$

19.4

 

$

20.3

 

$

21.4

 

$

21.7

 

EOP Loans

 

$

17.2

 

$

17.8

 

$

18.1

 

$

18.8

 

$

19.5

 

$

20.0

 

$

20.9

 

$

21.2

 

$

22.2

 

Net Interest Revenue (in millions of dollars)

 

$

184

 

$

192

 

$

184

 

$

195

 

$

190

 

$

185

 

$

201

 

$

209

 

$

218

 

% of Avg. Loans

 

4.36

%

4.40

%

4.12

%

4.20

%

4.03

%

3.82

%

3.93

%

3.87

%

4.04

%

Net Credit Losses (in millions of dollars)

 

$

2

 

$

3

 

$

2

 

$

6

 

$

4

 

$

24

 

$

5

 

$

14

 

$

13

 

% of Avg. Loans

 

0.04

%

0.07

%

0.04

%

0.13

%

0.08

%

0.50

%

0.10

%

0.25

%

0.24

%

Loans 90+ Days Past Due (in millions of dollars)

 

$

46

 

$

82

 

$

68

 

$

33

 

$

34

 

$

46

 

$

63

 

$

78

 

$

101

 

% of EOP Loans

 

0.27

%

0.46

%

0.38

%

0.18

%

0.17

%

0.23

%

0.30

%

0.37

%

0.46

%

 

Reclassified to conform to the current period’s presentation.

 

14



 

INSTITUTIONAL CLIENTS GROUP

(In millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full

 

Full

 

Full

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

Year

 

Year

 

Year

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commissions and Fees

 

$

828

 

$

858

 

$

708

 

$

729

 

$

862

 

$

852

 

$

988

 

$

1,002

 

$

936

 

$

2,932

 

$

3,123

 

$

3,704

 

Administration and Other Fiduciary Fees

 

841

 

885

 

869

 

969

 

981

 

1,201

 

1,376

 

1,424

 

1,359

 

3,099

 

3,564

 

4,982

 

Investment Banking

 

1,030

 

1,083

 

933

 

1,281

 

1,508

 

1,422

 

(34

)

1,097

 

(2,425

)

3,481

 

4,327

 

3,993

 

Principal Transactions

 

2,198

 

1,499

 

1,523

 

1,685

 

2,845

 

2,439

 

(1,421

)

(19,030

)

(8,238

)

5,564

 

6,905

 

(15,167

)

Other

 

770

 

828

 

390

 

1,087

 

1,022

 

1,537

 

334

 

1,093

 

(893

)

3,988

 

3,075

 

3,986

 

Total Non-Interest Revenue

 

5,667

 

5,153

 

4,423

 

5,751

 

7,218

 

7,451

 

1,243

 

(14,414

)

(9,261

)

19,064

 

20,994

 

1,498

 

Net Interest Revenue (including Dividends)

 

2,418

 

2,312

 

2,123

 

2,800

 

2,435

 

2,810

 

3,374

 

3,623

 

4,303

 

8,856

 

9,653

 

12,242

 

Total Revenues, Net of Interest Expense

 

8,085

 

7,465

 

6,546

 

8,551

 

9,653

 

10,261

 

4,617

 

(10,791

)

(4,958

)

27,920

 

30,647

 

13,740

 

Total Operating Expenses

 

5,006

 

4,443

 

3,850

 

4,930

 

5,391

 

5,349

 

4,463

 

6,033

 

5,970

 

15,091

 

18,229

 

21,236

 

Net Credit Losses

 

(32

)

42

 

(9

)

77

 

(20

)

(37

)

35

 

695

 

101

 

(275

)

78

 

673

 

Provision for Unfunded Lending Commitments

 

50

 

150

 

50

 

 

 

 

50

 

100

 

 

 

250

 

150

 

Credit Reserve Build / (Release)

 

(25

)

(32

)

70

 

3

 

274

 

(19

)

120

 

187

 

144

 

230

 

16

 

562

 

Provision for Benefits & Claims

 

44

 

37

 

53

 

54

 

52

 

26

 

33

 

44

 

52

 

158

 

188

 

155

 

Provision for Loan Losses and for Benefits and Claims

 

37

 

197

 

164

 

134

 

306

 

(30

)

238

 

1,026

 

297

 

113

 

532

 

1,540

 

Income (Loss) Before Taxes and Minority Interest

 

3,042

 

2,825

 

2,532

 

3,487

 

3,956

 

4,942

 

(84

)

(17,850

)

(11,225

)

12,716

 

11,886

 

(9,036

)

Income Taxes (Benefits)

 

646

 

791

 

623

 

992

 

1,003

 

1,470

 

(320

)

(7,207

)

(4,832

)

3,650

 

3,052

 

(5,054

)

Minority Interest, Net of Tax

 

50

 

8

 

29

 

136

 

36

 

88

 

(31

)

80

 

(36

)

471

 

223

 

173

 

Net Income (Loss)

 

$

2,346

 

$

2,026

 

$

1,880

 

$

2,359

 

$

2,917

 

$

3,384

 

$

267

 

$

(10,723

)

$

(6,357

)

$

8,595

 

$

8,611

 

$

(4,155

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Assets (in billions of dollars)

 

$

898

 

$

955

 

$

991

 

$

1,061

 

$

1,156

 

$

1,290

 

$

1,434

 

$

1,414

 

$

1,440

 

$

823

 

$

976

 

$

1,324

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Risk Capital

 

$

26,338

 

$

27,007

 

$

27,122

 

$

27,559

 

$

29,473

 

$

32,853

 

$

37,419

 

$

45,405

 

$

54,862

 

$

25,856

 

$

27,007

 

$

36,288

 

Return on Risk Capital

 

36

%

30

%

28

%

34

%

40

%

41

%

3

%

(94

)%

(47

)%

33

%

32

%

(11

)%

Return on Invested Capital

 

26

%

21

%

20

%

24

%

30

%

31

%

1

%

(73

)%

(36

)%

24

%

23

%

(10

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues by Product:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities and Banking

 

$

6,697

 

$

5,963

 

$

5,040

 

$

6,951

 

$

8,003

 

$

8,414

 

$

2,548

 

$

(13,090

)

$

(7,305

)

$

23,006

 

$

24,651

 

$

5,875

 

Transactions Services

 

1,388

 

1,502

 

1,506

 

1,600

 

1,650

 

1,847

 

2,069

 

2,299

 

2,347

 

4,914

 

5,996

 

7,865

 

Total

 

$

8,085

 

$

7,465

 

$

6,546

 

$

8,551

 

$

9,653

 

$

10,261

 

$

4,617

 

$

(10,791

)

$

(4,958

)

$

27,920

 

$

30,647

 

$

13,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income by Product:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities and Banking

 

$

2,021

 

$

1,685

 

$

1,494

 

$

1,980

 

$

2,469

 

$

2,868

 

$

(324

)

$

(11,390

)

$

(7,089

)

$

7,447

 

$

7,180

 

$

(6,377

)

Transactions Services

 

325

 

341

 

386

 

379

 

448

 

516

 

591

 

667

 

732

 

1,148

 

1,431

 

2,222

 

Total

 

$

2,346

 

$

2,026

 

$

1,880

 

$

2,359

 

$

2,917

 

$

3,384

 

$

267

 

$

(10,723

)

$

(6,357

)

$

8,595

 

$

8,611

 

$

(4,155

)

 

Reclassified to conform to the current period’s presentation.

 

15


 


 

INSTITUTIONAL CLIENTS GROUP
SECURITIES AND BANKING
(In millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full

 

Full

 

Full

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

Year

 

Year

 

Year

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Revenue

 

$

1,749

 

$

1,567

 

$

1,343

 

$

1,961

 

$

1,594

 

$

1,882

 

$

2,342

 

$

2,480

 

$

3,102

 

$

6,539

 

$

6,620

 

$

8,298

 

Non-Interest Revenue

 

4,948

 

4,396

 

3,697

 

4,990

 

6,409

 

6,532

 

206

 

(15,570

)

(10,407

)

16,467

 

18,031

 

(2,423

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenues, Net of Interest Expense

 

6,697

 

5,963

 

5,040

 

6,951

 

8,003

 

8,414

 

2,548

 

(13,090

)

(7,305

)

23,006

 

24,651

 

5,875

 

Total Operating Expenses

 

4,055

 

3,451

 

2,893

 

3,869

 

4,352

 

4,220

 

3,235

 

4,666

 

4,671

 

11,766

 

14,268

 

16,473

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

(36

)

25

 

(10

)

71

 

(25

)

(38

)

31

 

681

 

101

 

(266

)

50

 

649

 

Provision for Unfunded Lending Commitments

 

46

 

138

 

48

 

 

 

 

50

 

100

 

 

 

232

 

150

 

Credit Reserve Build / (Release)

 

(21

)

(19

)

64

 

3

 

274

 

(12

)

120

 

216

 

142

 

202

 

27

 

598

 

Provision for Benefits & Claims

 

44

 

37

 

53

 

54

 

52

 

26

 

33

 

44

 

52

 

158

 

188

 

155

 

Provision for Loan Losses and for Benefits and Claims

 

33

 

181

 

155

 

128

 

301

 

(24

)

234

 

1,041

 

295

 

94

 

497

 

1,552

 

Income (Loss) Before Taxes and Minority Interest

 

2,609

 

2,331

 

1,992

 

2,954

 

3,350

 

4,218

 

(921

)

(18,797

)

(12,271

)

11,146

 

9,886

 

(12,150

)

Income Taxes (Benefits)

 

539

 

639

 

470

 

839

 

849

 

1,266

 

(561)

 

(7,480

)

(5,138

)

3,229

 

2,487

 

(5,926

)

Minority Interest, Net of Tax

 

49

 

7

 

28

 

135

 

32

 

84

 

(36

)

73

 

(44

)

470

 

219

 

153

 

Net Income (Loss)

 

$

2,021

 

$

1,685

 

$

1,494

 

$

1,980

 

$

2,469

 

$

2,868

 

$

(324

)

$

(11,390

)

$

(7,089

)

$

7,447

 

$

7,180

 

$

(6,377

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Assets (in billions of dollars)

 

$

832

 

$

884

 

$

921

 

$

990

 

$

1,086

 

$

1,212

 

$

1,355

 

$

1,336

 

$

1,363

 

$

762

 

$

907

 

$

1,247

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Risk Capital

 

$

24,868

 

$

25,426

 

$

25,605

 

$

26,183

 

$

28,031

 

$

31,210

 

$

35,592

 

$

43,599

 

$

52,617

 

$

24,529

 

$

25,521

 

$

34,608

 

Return on Risk Capital

 

33

%

27

%

23

%

30

%

36

%

37

%

(4

)%

(104

)%

(54

)%

30

%

28

%

(19

)%

Return on Invested Capital

 

24

%

19

%

17

%

22

%

27

%

26

%

(4

)%

(82

)%

(43

)%

21

%

20

%

(16

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Details:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advisory and Other Fees

 

$

295

 

$

296

 

$

355

 

$

383

 

$

429

 

$

397

 

$

465

 

$

553

 

$

307

 

$

1,215

 

$

1,329

 

$

1,844

 

Equity Underwriting

 

286

 

284

 

204

 

463

 

523

 

539

 

401

 

473

 

229

 

1,136

 

1,237

 

1,936

 

Debt Underwriting

 

713

 

670

 

639

 

667

 

813

 

712

 

(172

)

439

 

(2,082

)

2,155

 

2,688

 

1,792

 

Gross Investment Banking

 

1,294

 

1,250

 

1,198

 

1,513

 

1,765

 

1,648

 

694

 

1,465

 

(1,546

)

4,506

 

5,254

 

5,572

 

Revenue Allocated to the Global Wealth Management Segment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Underwriting

 

(42

)

(49

)

(59

)

(111

)

(136

)

(137

)

(83

)

(88

)

(54

)

(309

)

(261

)

(444

)

Debt Underwriting

 

(36

)

(51

)

(50

)

(58

)

(34

)

(42

)

(31

)

(34

)

(67

)

(114

)

(195

)

(141

)

Net Investment Banking

 

1,216

 

1,150

 

1,089

 

1,344

 

1,595

 

1,469

 

580

 

1,343

 

(1,667

)

4,083

 

4,798

 

4,987

 

Lending

 

418

 

576

 

487

 

530

 

570

 

504

 

638

 

1,269

 

584

 

2,293

 

2,011

 

2,981

 

Equity Markets

 

1,179

 

945

 

868

 

900

 

1,483

 

1,582

 

1,062

 

770

 

979

 

3,073

 

3,892

 

4,897

 

Fixed Income Markets

 

3,997

 

3,508

 

2,800

 

4,209

 

4,451

 

4,652

 

944

 

(16,105

)

(7,023

)

13,768

 

14,514

 

(6,058

)

Other Securities and Banking

 

(113

)

(216

)

(204

)

(32

)

(96

)

207

 

(676

)

(367

)

(178

)

(211

(564

)

(932

)

Total Securities and Banking Revenues

 

6,697

 

5,963

 

5,040

 

6,951

 

8,003

 

8,414

 

2,548

 

(13,090

)

(7,305

)

23,006

 

24,651

 

5,875

 

 

Reclassified to conform to the current period’s presentation.

 

16



 

INSTITUTIONAL CLIENTS GROUP
TRANSACTION SERVICES
(In millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full

 

Full

 

Full

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

Year

 

Year

 

Year

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Revenue

 

$

669

 

$

745

 

$

780

 

$

839

 

$

841

 

$

928

 

$

1,032

 

$

1,143

 

$

1,201

 

$

2,317

 

$

3,033

 

$

3,944

 

Non-Interest Revenue

 

719

 

757

 

726

 

761

 

809

 

919

 

1,037

 

1,156

 

1,146

 

2,597

 

2,963

 

3,921

 

Total Revenues, Net of Interest Expense

 

1,388

 

1,502

 

1,506

 

1,600

 

1,650

 

1,847

 

2,069

 

2,299

 

2,347

 

4,914

 

5,996

 

7,865

 

Total Operating Expenses

 

951

 

992

 

957

 

1,061

 

1,039

 

1,129

 

1,228

 

1,367

 

1,299

 

3,325

 

3,961

 

4,763

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

4

 

17

 

1

 

6

 

5

 

1

 

4

 

14

 

 

(9

)

28

 

24

 

Provision for Unfunded Lending Commitments

 

4

 

12

 

2

 

 

 

 

 

 

 

 

18

 

 

Credit Reserve Build / (Release)

 

(4

)

(13

)

6

 

 

 

(7

)

 

(29

)

2

 

28

 

(11

)

(36

)

Provision for Benefits & Claims

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Loan Losses and for Benefits and Claims

 

4

 

16

 

9

 

6

 

5

 

(6

)

4

 

(15

)

2

 

19

 

35

 

(12

)

Income (Loss) Before Taxes and Minority Interest

 

433

 

494

 

540

 

533

 

606

 

724

 

837

 

947

 

1,046

 

1,570

 

2,000

 

3,114

 

Income Taxes (Benefits)

 

107

 

152

 

153

 

153

 

154

 

204

 

241

 

273

 

306

 

421

 

565

 

872

 

Minority Interest, Net of Tax

 

1

 

1

 

1

 

1

 

4

 

4

 

5

 

7

 

8

 

1

 

4

 

20

 

Net Income

 

$

325

 

$

341

 

$

386

 

$

379

 

$

448

 

$

516

 

$

591

 

$

667

 

$

732

 

$

1,148

 

$

1,431

 

$

2,222

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Assets (in billions of dollars)

 

$

66

 

$

71

 

$

70

 

$

71

 

$

70

 

$

78

 

$

79

 

$

78

 

$

77

 

$

61

 

$

70

 

$

76

 

Average Risk Capital

 

$

1,470

 

$

1,582

 

$

1,517

 

$

1,376

 

$

1,442

 

$

1,643

 

$

1,827

 

$

1,807

 

$

2,245

 

$

1,327

 

$

1,486

 

$

1,680

 

Return on Risk Capital

 

90

%

86

%

101

%

109

%

126

%

126

%

128

%

146

%

131

%

87

%

96

%

132

%

Return on Invested Capital

 

50

%

50

%

57

%

59

%

67

%

69

%

67

%

69

%

66

%

48

%

54

%

68

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Details:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury and Trade Solutions

 

$

949

 

$

1,023

 

$

1,056

 

$

1,122

 

$

1,143

 

$

1,222

 

$

1,334

 

$

1,483

 

$

1,519

 

$

3,475

 

$

4,150

 

$

5,182

 

Securities Services

 

438

 

479

 

450

 

478

 

507

 

625

 

735

 

816

 

828

 

1,439

 

1,846

 

2,683

 

Total

 

$

1,388

 

$

1,502

 

$

1,506

 

$

1,600

 

$

1,650

 

$

1,847

 

$

2,069

 

$

2,299

 

$

2,347

 

$

4,914

 

$

5,996

 

$

7,865

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Deposits and Other Customer Liability Balances (in billions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

45

 

$

49

 

$

49

 

$

53

 

$

51

 

$

59

 

$

54

 

$

61

 

$

61

 

 

 

 

 

 

 

EMEA

 

56

 

65

 

67

 

71

 

79

 

88

 

94

 

99

 

105

 

 

 

 

 

 

 

Latin America

 

9

 

11

 

11

 

11

 

12

 

12

 

18

 

20

 

20

 

 

 

 

 

 

 

Asia

 

61

 

68

 

66

 

70

 

73

 

80

 

90

 

97

 

97

 

 

 

 

 

 

 

Total

 

$

172

 

$

193

 

$

193

 

$

205

 

$

215

 

$

239

 

$

256

 

$

277

 

$

283

 

 

 

 

 

 

 

Assets Under Custody (EOP in trillions)

 

$

8.8

 

$

9.3

 

$

9.6

 

$

10.4

 

$

10.7

 

$

11.3

 

12.7

 

$

13.1

 

$

12.9

 

 

 

 

 

 

 

 

Reclassified to conform to the current period’s presentation.

 

17



 

GLOBAL WEALTH MANAGEMENT
Page 1
(In millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full

 

Full

 

Full

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

Year

 

Year

 

Year

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Revenue

 

$

238

 

$

229

 

$

222

 

$

220

 

$

529

 

$

526

 

$

538

 

$

581

 

$

570

 

$

1,091

 

$

909

 

$

2,174

 

Non-Interest Revenue

 

2,245

 

2,263

 

2,264

 

2,496

 

2,289

 

2,671

 

2,981

 

2,883

 

2,709

 

7,592

 

9,268

 

10,824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenues, Net of Interest Expense

 

2,483

 

2,492

 

2,486

 

2,716

 

2,818

 

3,197

 

3,519

 

3,464

 

3,279

 

8,683

 

10,177

 

12,998

 

Total Operating Expenses

 

2,055

 

1,960

 

1,895

 

2,096

 

2,103

 

2,461

 

2,621

 

2,664

 

2,796

 

6,696

 

8,006

 

9,849

 

Net Credit Losses

 

(5

)

 

 

 

 

 

1

 

 

10

 

(4

)

(5

)

1

 

Credit Reserve Build / (Release)

 

10

 

8

 

16

 

(5

)

17

 

12

 

56

 

15

 

11

 

32

 

29

 

100

 

Total Provision for Loan Losses

 

5

 

8

 

16

 

(5

)

17

 

12

 

57

 

15

 

21

 

28

 

24

 

101

 

Income Before Taxes and Minority Interest

 

423

 

524

 

575

 

625

 

698

 

724

 

841

 

785

 

462

 

1,959

 

2,147

 

3,048

 

Income Taxes

 

136

 

178

 

176

 

214

 

250

 

197

 

312

 

260

 

159

 

715

 

704

 

1,019

 

Minority Interest, Net of Tax

 

 

 

 

 

 

15

 

39

 

1

 

9

 

 

 

55

 

Net Income

 

$

287

 

$

346

 

$

399

 

$

411

 

$

448

 

$

512

 

$

490

 

$

524

 

$

294

 

$

1,244

 

$

1,443

 

$

1,974

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax Profit Margin

 

17

%

21

%

23

%

23

%

25

%

23

%

24

%

23

%

14

%

23

%

21

%

23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Assets (in billions of dollars)

 

$

61

 

$

61

 

$

62

 

$

63

 

$

65

 

$

78

 

$

97

 

$

104

 

$

107

 

$

60

 

$

62

 

$

86

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Risk Capital

 

$

2,539

 

$

2,365

 

$

2,364

 

$

2,683

 

$

2,879

 

$

2,878

 

$

3,164

 

$

3,781

 

$

4,509

 

$

2,112

 

$

2,488

 

$

3,176

 

Return on Risk Capital

 

46

%

59

%

67

%

61

%

63

%

71

%

61

%

55

%

26

%

59

%

58

%

62

%

Return on Invested Capital

 

29

%

36

%

41

%

39

%

39

%

30

%

23

%

24

%

11

%

46

%

36

%

28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fee-Based Revenues

 

$

1,564

 

$

1,601

 

$

1,659

 

$

1,743

 

$

1,775

 

$

1,879

 

$

2,011

 

$

2,065

 

$

1,960

 

$

5,259

 

$

6,567

 

$

7,730

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Advisors (FA) / Bankers

 

13,837

 

13,671

 

13,601

 

13,694

 

13,605

 

15,595

 

15,458

 

15,454

 

15,241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Client Asset Flows (in billions)

 

$

3

 

$

(4

)

$

3

 

$

12

 

$

6

 

$

 

$

8

 

$

1

 

$

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Smith Barney

 

$

1,987

 

$

1,990

 

$

1,994

 

$

2,189

 

$

2,246

 

$

2,611

 

$

2,902

 

$

2,782

 

$

2,648

 

$

6,825

 

$

8,160

 

$

10,541

 

Private Bank

 

496

 

502

 

492

 

527

 

572

 

586

 

617

 

682

 

631

 

1,858

 

2,017

 

2,457

 

Total Revenues

 

$

2,483

 

$

2,492

 

$

2,486

 

$

2,716

 

$

2,818

 

$

3,197

 

$

3,519

 

$

3,464

 

$

3,279

 

$

8,683

 

$

10,177

 

$

12,998

 

 

Reclassified to conform to the current period’s presentation.

 

18



 

GLOBAL WEALTH MANAGEMENT
Page 2
(In millions of dollars)

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY INDICATORS (in billions of dollars, except for branches)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Client Assets Under Fee-Based Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

343

 

$

336

 

$

346

 

$

370

 

$

377

 

$

398

 

$

402

 

$

391

 

$

364

 

EMEA

 

7

 

7

 

7

 

8

 

19

 

21

 

21

 

21

 

20

 

Latin America

 

11

 

12

 

12

 

12

 

13

 

14

 

14

 

14

 

13

 

Asia

 

8

 

8

 

8

 

9

 

9

 

76

 

78

 

81

 

84

 

Total

 

$

369

 

$

363

 

$

373

 

$

399

 

$

418

 

$

509

 

$

515

 

$

507

 

$

481

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Deposits and Other Customer Liability Balances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

64.6

 

$

65.3

 

$

66.5

 

$

66.2

 

$

67.6

 

$

66.6

 

$

69.4

 

$

77.0

 

$

77.0

 

EMEA

 

15.0

 

15.0

 

17.0

 

19.0

 

18.0

 

19.0

 

22.0

 

23.0

 

22.0

 

Latin America

 

5.0

 

5.0

 

6.0

 

7.0

 

7.0

 

9.0

 

9.0

 

10.0

 

9.0

 

Asia

 

18.4

 

18.7

 

19.5

 

20.8

 

19.4

 

18.4

 

18.6

 

21.0

 

21.0

 

Total

 

$

103.0

 

$

104.0

 

$

109.0

 

$

113.0

 

$

112.0

 

$

113.0

 

$

119.0

 

$

131.0

 

$

129.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Client Assets (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

1,226

 

$

1,198

 

$

1,231

 

$

1,297

 

$

1,312

 

$

1,375

 

$

1,389

 

$

1,356

 

$

1,273

 

EMEA

 

41

 

42

 

45

 

49

 

65

 

69

 

72

 

69

 

65

 

Latin America

 

32

 

33

 

35

 

38

 

44

 

48

 

49

 

47

 

47

 

Asia

 

48

 

48

 

50

 

54

 

72

 

296

 

310

 

312

 

322

 

Total

 

$

1,347

 

$

1,321

 

$

1,361

 

$

1,438

 

$

1,493

 

$

1,788

 

$

1,820

 

$

1,784

 

$

1,707

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

26.4

 

$

27.6

 

$

28.9

 

$

29.6

 

$

30.4

 

$

32.4

 

$

34.2

 

$

38.0

 

$

39.9

 

EMEA

 

3.5

 

4.1

 

4.1

 

4.3

 

5.4

 

7.3

 

8.9

 

8.8

 

9.2

 

Latin America

 

2.2

 

2.2

 

2.1

 

2.1

 

2.2

 

2.2

 

2.6

 

2.6

 

2.5

 

Asia

 

7.9

 

8.1

 

7.9

 

8.0

 

8.0

 

9.1

 

11.3

 

11.6

 

12.4

 

Total

 

40.0

 

42.0

 

43.0

 

44.0

 

46.0

 

51.0

 

57.0

 

61.0

 

64.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Offices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

644

 

644

 

646

 

645

 

642

 

700

 

697

 

683

 

683

 

EMEA

 

17

 

17

 

17

 

17

 

27

 

28

 

28

 

29

 

29

 

Latin America

 

13

 

13

 

13

 

13

 

13

 

12

 

13

 

13

 

11

 

Asia

 

22

 

22

 

22

 

22

 

23

 

132

 

133

 

136

 

136

 

Total

 

696

 

696

 

698

 

697

 

705

 

872

 

871

 

861

 

859

 

 


(1)

 

Total Client Assets include Average Deposits and Other Customer Liability Balances.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassified to conform to the current period’s presentation.

 

19



 

NORTH AMERICA
(In millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full

 

Full

 

Full

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

Year

 

Year

 

Year

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Revenue

 

$

5,228

 

$

5,105

 

$

4,740

 

$

5,582

 

$

5,246

 

$

5,676

 

$

5,876

 

$

6,535

 

$

6,691

 

$

24,024

 

$

20,655

 

$

23,333

 

Non-Interest Revenue

 

7,483

 

7,709

 

7,250

 

8,156

 

8,849

 

8,313

 

4,363

 

(7,224

)

(4,311

)

25,335

 

30,598

 

14,301

 

Total Revenues, Net of Interest Expense

 

12,711

 

12,814

 

11,990

 

13,738

 

14,095

 

13,989

 

10,239

 

(689

)

2,380

 

49,359

 

51,253

 

37,634

 

Total Operating Expenses

 

7,708

 

6,927

 

6,288

 

7,455

 

7,716

 

7,352

 

6,844

 

8,274

 

8,277

 

24,731

 

28,378

 

30,186

 

Net Credit Losses

 

912

 

947

 

930

 

1,045

 

1,053

 

1,092

 

1,227

 

2,308

 

2,190

 

4,770

 

3,834

 

5,680

 

Credit Reserve Build / (Release)

 

(143

)

(176

)

(108

)

(105

)

267

 

238

 

1,359

 

3,534

 

1,477

 

335

 

(532

)

5,398

 

Provision for Benefits & Claims

 

181

 

194

 

221

 

180

 

209

 

170

 

188

 

193

 

222

 

709

 

776

 

760

 

Provision for Loan Losses and for Benefits and Claims

 

950

 

965

 

1,043

 

1,120

 

1,529

 

1,500

 

2,774

 

6,035

 

3,889

 

5,814

 

4,078

 

11,838

 

Income(Loss) Before Taxes and Minority Interest

 

4,053

 

4,922

 

4,659

 

5,163

 

4,850

 

5,137

 

621

 

(14,998

)

(9,786

)

18,814

 

18,797

 

(4,390

)

Income Taxes (Benefits)

 

1,010

 

1,672

 

1,493

 

1,749

 

1,576

 

1,674

 

143

 

(6,060

)

(4,165

)

6,364

 

5,924

 

(2,667

)

Minority Interest, Net of Tax

 

51

 

20

 

35

 

136

 

30

 

66

 

(3

)

9

 

(35

)

499

 

242

 

102

 

Net Income (Loss)

 

$

2,992

 

$

3,230

 

$

3,131

 

$

3,278

 

$

3,244

 

$

3,397

 

$

481

 

$

(8,947

)

$

(5,586

)

$

11,951

 

$

12,631

 

$

(1,825

)

Average Assets (in billions of dollars)

 

$

890

 

$

914

 

$

992

 

$

1,087

 

$

1,156

 

$

1,215

 

$

1,254

 

$

1,262

 

$

1,289

 

$

816

 

$

971

 

$

1,222

 

Return on Assets

 

1.36

%

1.42

%

1.25

%

1.20

%

1.14

%

1.12

%

0.15

%

-2.81

%

-1.74

%

1.46

%

1.30

%

-0.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Drivers (in billions of dollars, except branches):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed Cards

 

$

142.0

 

$

143.0

 

$

145.7

 

$

145.1

 

$

144.3

 

$

143.2

 

$

145.3

 

$

150.5

 

$

152.7

 

 

 

 

 

 

 

Consumer Banking

 

241.4

 

253.0

 

258.1

 

267.3

 

277.3

 

286.0

 

293.2

 

302.6

 

307.2

 

 

 

 

 

 

 

Corporate

 

31.2

 

30.4

 

35.2

 

34.6

 

30.8

 

35.0

 

43.3

 

41.9

 

49.3

 

 

 

 

 

 

 

Global Wealth Management

 

26.4

 

27.6

 

28.9

 

29.6

 

30.4

 

32.4

 

34.2

 

38.0

 

39.9

 

 

 

 

 

 

 

Total

 

$

441.0

 

$

454.0

 

$

467.9

 

$

476.6

 

$

482.8

 

$

496.6

 

$

516.0

 

$

533.0

 

$

549.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Consumer Banking Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

$

171.8

 

$

182.0

 

$

186.9

 

$

195.3

 

$

202.2

 

$

210.2

 

$

214.2

 

$

219.5

 

$

219.9

 

 

 

 

 

 

 

Auto

 

12.8

 

13.5

 

14.3

 

15.5

 

16.6

 

18.2

 

19.1

 

20.1

 

21.2

 

 

 

 

 

 

 

Student

 

24.7

 

24.7

 

23.2

 

21.9

 

22.5

 

20.9

 

21.2

 

22.0

 

24.0

 

 

 

 

 

 

 

Personal and Other

 

15.0

 

15.3

 

16.0

 

16.2

 

16.9

 

17.3

 

18.4

 

19.6

 

20.4

 

 

 

 

 

 

 

Commercial

 

17.1

 

17.5

 

17.7

 

18.4

 

19.1

 

19.4

 

20.3

 

21.4

 

21.7

 

 

 

 

 

 

 

Total

 

$

241.4

 

$

253.0

 

$

258.1

 

$

267.3

 

$

277.3

 

$

286.0

 

$

293.2

 

$

302.6

 

$

307.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Deposits (and other Cutomer Liability Balances)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking, Savings & Money Market Deposits

 

$

79.8

 

$

79.8

 

$

79.8

 

$

82.0

 

$

88.1

 

$

90.7

 

$

90.6

 

$

90.0

 

$

92.7

 

 

 

 

 

 

 

Time Deposits, CDs and Other

 

17.8

 

19.6

 

24.4

 

29.7

 

29.3

 

28.0

 

30.2

 

32.0

 

30.0

 

 

 

 

 

 

 

Consumer Banking Deposits

 

97.6

 

99.4

 

104.2

 

111.7

 

117.4

 

118.7

 

120.8

 

122.0

 

122.7

 

 

 

 

 

 

 

Transaction Services

 

46.0

 

49.0

 

49.0

 

53.0

 

51.0

 

59.0

 

54.0

 

61.0

 

61.0

 

 

 

 

 

 

 

Global Wealth Management

 

64.6

 

65.3

 

66.5

 

66.2

 

67.6

 

66.6

 

69.4

 

77.0

 

77.0

 

 

 

 

 

 

 

Total

 

$

208.2

 

$

213.7

 

$

219.7

 

$

230.9

 

$

236.0

 

$

244.3

 

$

244.2

 

$

260.0

 

$

260.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Wealth Management Assets Under Fee-Based Management

 

$

343

 

$

336

 

$

346

 

$

370

 

$

377

 

$

398

 

$

402

 

$

391

 

$

364

 

 

 

 

 

 

 

Global Wealth Management Total Client Assets

 

$

1,226

 

$

1,198

 

$

1,231

 

$

1,297

 

$

1,312

 

$

1,375

 

$

1,389

 

$

1,356

 

$

1,273

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Banking Investment Sales

 

$

1.4

 

$

1.3

 

$

1.2

 

$

1.2

 

$

1.5

 

$

1.4

 

$

1.3

 

$

1.4

 

$

1.4

 

 

 

 

 

 

 

Consumer Banking Investment AUMs

 

$

31.2

 

$

31.3

 

$

32.5

 

$

34.4

 

$

34.9

 

$

37.0

 

$

37.9

 

$

37.5

 

$

34.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branches / Offices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Citibank

 

906

 

892

 

931

 

972

 

993

 

1,001

 

1,015

 

1,046

 

1,051

 

 

 

 

 

 

 

CitiFinancial

 

2,297

 

2,359

 

2,420

 

2,467

 

2,494

 

2,431

 

2,466

 

2,498

 

2,517

 

 

 

 

 

 

 

Global Wealth Management Offices

 

644

 

644

 

646

 

645

 

642

 

700

 

697

 

683

 

683

 

 

 

 

 

 

 

Total

 

3,847

 

3,895

 

3,997

 

4,084

 

4,129

 

4,132

 

4,178

 

4,227

 

4,251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Loans Excluding GWM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Loss Ratio

 

1.27

%

1.19

%

1.20

%

1.32

%

1.34

%

1.31

%

1.43

%

1.96

%

2.45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans 90+Days Past Due (in millions)

 

$

4,152

 

$

3,967

 

$

4,139

 

$

4,453

 

$

4,489

 

$

4,929

 

$

6,098

 

$

7,349

 

$

8,115

 

 

 

 

 

 

 

% of EOP Loans

 

1.42

%

1.30

%

1.35

%

1.38

%

1.40

%

1.50

%

1.80

%

2.10

%

2.34

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassified to conform to the current period’s presentation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20



 

EMEA

(In millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full

 

Full

 

Full

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

Year

 

Year

 

Year

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Revenue

 

$

1,510

 

$

1,690

 

$

1,679

 

$

1,568

 

$

1,713

 

$

2,139

 

$

2,231

 

$

2,247

 

$

2,435

 

$

4,624

 

$

6,447

 

$

8,330

 

Non-Interest Revenue

 

2,133

 

1,796

 

1,924

 

2,179

 

2,669

 

2,610

 

1,046

 

(3,224

)

(269

)

7,724

 

8,032

 

3,101

 

Total Revenues, Net of Interest Expense

 

3,643

 

3,486

 

3,603

 

3,747

 

4,382

 

4,749

 

3,277

 

(977

)

2,166

 

12,348

 

14,479

 

11,431

 

Total Operating Expenses

 

2,374

 

2,463

 

2,365

 

2,470

 

2,851

 

3,057

 

2,625

 

3,361

 

3,368

 

8,613

 

9,672

 

11,894

 

Net Credit Losses

 

240

 

312

 

226

 

323

 

318

 

274

 

456

 

439

 

484

 

2,092

 

1,101

 

1,487

 

Credit Reserve Build / (Release)

 

(16

)

(28

)

84

 

26

 

243

 

78

 

344

 

192

 

95

 

(439

)

66

 

857

 

Provision for Benefits & Claims

 

 

 

 

2

 

1

 

1

 

1

 

1

 

1

 

(1

)

2

 

4

 

Provision for Loan Losses and for Benefits and Claims

 

224

 

284

 

310

 

351

 

562

 

353

 

801

 

632

 

580

 

1,652

 

1,169

 

2,348

 

Income (Loss) Before Taxes and Minority Interest

 

1,045

 

739

 

928

 

926

 

969

 

1,339

 

(149

)

(4,970

)

(1,782

)

2,083

 

3,638

 

(2,811

)

Income Taxes (Benefits)

 

216

 

175

 

217

 

256

 

173

 

322

 

(199

)

(1,843

)

(743

)

534

 

864

 

(1,547

)

Minority Interest, Net of Tax

 

8

 

11

 

10

 

15

 

17

 

25

 

21

 

22

 

21

 

38

 

44

 

85

 

Net Income (Loss)

 

$

821

 

$

553

 

$

701

 

$

655

 

$

779

 

$

992

 

$

29

 

$

(3,149

)

$

(1,060

)

$

1,511

 

$

2,730

 

$

(1,349

)

Average Assets (in billions of dollars)

 

$

273

 

$

315

 

$

309

 

$

327

 

$

366

 

$

423

 

$

459

 

$

451

 

$

452

 

$

260

 

$

306

 

$

425

 

Return on Assets

 

1.22

%

0.70

%

0.90

%

0.79

%

0.86

%

0.94

%

0.03

%

(2.77

)%

(0.94

)%

0.58

%

0.89

%

(0.32

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Drivers (in billions of dollars, except branches):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cards

 

$

6.1

 

$

6.5

 

$

6.7

 

$

7.4

 

$

7.8

 

$

12.1

 

$

14.8

 

$

15.8

 

$

16.4

 

 

 

 

 

 

 

Consumer Banking

 

27.0

 

28.9

 

29.5

 

30.7

 

31.3

 

36.0

 

38.5

 

40.5

 

41.1

 

 

 

 

 

 

 

Corporate

 

53.7

 

59.1

 

65.2

 

65.7

 

68.2

 

75.0

 

81.2

 

78.2

 

73.2

 

 

 

 

 

 

 

Global Wealth Management

 

3.5

 

4.1

 

4.1

 

4.3

 

5.4

 

7.3

 

8.9

 

8.8

 

9.2

 

 

 

 

 

 

 

Total

 

$

90.3

 

$

98.6

 

$

105.5

 

$

108.1

 

$

112.7

 

$

130.4

 

$

143.4

 

$

143.3

 

$

139.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Consumer Banking Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

$

6.3

 

$

6.6

 

$

6.6

 

$

6.7

 

$

6.8

 

$

8.0

 

$

8.6

 

$

9.1

 

$

8.7

 

 

 

 

 

 

 

Personal

 

19.3

 

20.8

 

21.5

 

22.8

 

23.3

 

26.8

 

28.6

 

30.1

 

31.0

 

 

 

 

 

 

 

Commercial and other

 

1.4

 

1.5

 

1.4

 

1.2

 

1.2

 

1.2

 

1.3

 

1.3

 

1.4

 

 

 

 

 

 

 

Total

 

$

27.0

 

$

28.9

 

$

29.5

 

$

30.7

 

$

31.3

 

$

36.0

 

$

38.5

 

$

40.5

 

$

41.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Deposits (and other Customer Liability Balances)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Banking Deposits

 

$

31.0

 

$

32.8

 

$

32.7

 

$

33.0

 

$

33.9

 

$

42.6

 

$

48.0

 

$

48.6

 

$

50.5

 

 

 

 

 

 

 

Transaction Services

 

56.0

 

65.0

 

67.0

 

71.0

 

79.0

 

88.0

 

94.0

 

99.0

 

105.0

 

 

 

 

 

 

 

Global Wealth Management

 

15.0

 

15.0

 

17.0

 

19.0

 

18.0

 

19.0

 

22.0

 

23.0

 

22.0

 

 

 

 

 

 

 

Total

 

$

102.0

 

$

112.8

 

$

116.7

 

$

123.0

 

$

130.9

 

$

149.6

 

$

164.0

 

$

170.6

 

$

177.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Wealth Management Assets Under Fee-Based Management

 

$

7

 

$

7

 

$

7

 

$

8

 

$

19

 

$

21

 

$

21

 

$

21

 

$

20

 

 

 

 

 

 

 

Global Wealth Management Total Client Assets

 

$

41

 

$

42

 

$

45

 

$

49

 

$

65

 

$

69

 

$

72

 

$

69

 

$

65

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Banking Investment Sales

 

$

5.1

 

$

4.7

 

$

4.3

 

$

4.8

 

$

6.2

 

$

6.6

 

$

6.6

 

$

6.6

 

$

5.9

 

 

 

 

 

 

 

Consumer Banking Investment AUMs

 

$

24.1

 

$

24.1

 

$

25.5

 

$

28.1

 

$

29.0

 

$

31.5

 

$

33.1

 

$

34.3

 

$

33.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branches / Offices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Citibank

 

636

 

663

 

682

 

711

 

717

 

715

 

723

 

734

 

776

 

 

 

 

 

 

 

CitiFinancial

 

306

 

326

 

339

 

354

 

306

 

308

 

310

 

317

 

317

 

 

 

 

 

 

 

Global Wealth Management Offices

 

17

 

17

 

17

 

17

 

27

 

28

 

28

 

29

 

29

 

 

 

 

 

 

 

Total

 

959

 

1,006

 

1,038

 

1,082

 

1,050

 

1,051

 

1,061

 

1,080

 

1,122

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Loans Excluding GWM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Loss Ratio

 

3.06

%

3.31

%

2.42

%

3.16

%

3.30

%

2.40

%

3.13

%

2.14

%

3.05

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans 90+Days Past Due (in millions)

 

$

487

 

$

508

 

$

576

 

$

573

 

$

580

 

$

719

 

$

724

 

$

639

 

$

732

 

 

 

 

 

 

 

% of EOP Loans

 

1.47

%

1.43

%

1.58

%

1.48

%

1.47

%

1.39

%

1.33

%

1.15

%

1.23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassified to conform to the current period’s presentation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21



 

LATIN AMERICA

(In millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full

 

Full

 

Full

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

Year

 

Year

 

Year

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

2005

 

2006

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Revenue

 

$

1,064

 

$

1,149

 

$

1,362

 

$

1,476

 

$

1,503

 

$

1,776

 

$

1,933

 

$

1,939

 

$

2,015

 

$

3,636

 

$

5,051

 

$

7,151

 

Non-Interest Revenue

 

1,128

 

1,185

 

1,083

 

1,428

 

1,366

 

1,287

 

2,061

 

1,702

 

1,921

 

4,386

 

4,824

 

6,416

 

Total Revenues, Net of Interest Expense

 

2,192

 

2,334

 

2,445

 

2,904

 

2,869

 

3,063

 

3,994

 

3,641

 

3,936

 

8,022

 

9,875

 

13,567

 

Total Operating Expenses

 

1,279

 

1,289

 

1,369

 

1,576

 

1,479

 

1,653

 

1,830

 

1,815

 

1,487

 

4,298

 

5,513

 

6,777

 

Net Credit Losses

 

82

 

131

 

183

 

234

 

246

 

175

 

361

 

381

 

503

 

73

 

630

 

1,163

 

Credit Reserve Build / (Release)

 

6

 

59

 

42

 

115

 

17

 

151

 

232

 

131

 

224

 

(62

)

222

 

531

 

Provision for Benefits & Claims

 

44

 

37

 

53

 

54

 

52

 

26

 

47

 

48

 

54

 

158

 

188

 

173

 

Provision for Loan Losses and for Benefits and Claims

 

132

 

227

 

278

 

403

 

315

 

352

 

640

 

560

 

781

 

169

 

1,040

 

1,867

 

Income Before Taxes and Minority Interest

 

781

 

818

 

798

 

925

 

1,075

 

1,058

 

1,524

 

1,266

 

1,668

 

3,555

 

3,322

 

4,923

 

Income Taxes

 

72

 

128

 

111

 

195

 

290

 

270

 

439

 

327

 

472

 

766

 

506

 

1,326

 

Minority Interest, Net of Tax

 

 

 

1

 

 

 

1

 

1

 

 

1

 

 

1

 

2

 

Net Income

 

$

709

 

$

690

 

$

686

 

$

730

 

$

785

 

$

787

 

$

1,084

 

$

939

 

$

1,195

 

$

2,789

 

$

2,815

 

$

3,595

 

Average Assets (in billions of dollars)

 

$

113

 

$

112

 

$

117

 

$

122

 

$

129

 

$

144

 

$

150

 

$

155

 

$

153

 

$

101

 

$

116

 

$

145

 

Return on Assets

 

2.54

%

2.47

%

2.33

%

2.37

%

2.47

%

2.19

%

2.87

%

2.40

%

3.14

%

2.76

%

2.43

%

2.48

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Drivers (in billions of dollars, except branches):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cards

 

$

6.5

 

$

7.6

 

$

8.5

 

$

9.3

 

$

10.2

 

$

11.7

 

$

12.3

 

$

13.5

 

$

14.1

 

 

 

 

 

 

 

Consumer Banking

 

10.2

 

9.8

 

10.3

 

10.9

 

11.2

 

13.1

 

13.9

 

14.6

 

14.6

 

 

 

 

 

 

 

Corporate

 

19.5

 

20.0

 

20.0

 

22.1

 

23.1

 

27.8

 

29.7

 

31.3

 

29.1

 

 

 

 

 

 

 

Global Wealth Management

 

2.2

 

2.2

 

2.1

 

2.1

 

2.2

 

2.2

 

2.6

 

2.6

 

2.5

 

 

 

 

 

 

 

Total

 

$

38.4

 

$

39.6

 

$

40.9

 

$

44.4

 

$

46.7

 

$

54.8

 

$

58.5

 

$

62.0

 

$

60.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Consumer Banking Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

$

2.8

 

$

2.5

 

$

2.7

 

$

2.7

 

$

2.6

 

$

2.6

 

$

2.6

 

$

2.7

 

$

3.3

 

 

 

 

 

 

 

Personal

 

2.5

 

2.6

 

2.9

 

3.3

 

3.6

 

4.4

 

4.6

 

5.0

 

5.0

 

 

 

 

 

 

 

Commercial and other

 

4.9

 

4.7

 

4.7

 

4.9

 

5.0

 

6.1

 

6.7

 

6.9

 

6.3

 

 

 

 

 

 

 

Total

 

$

10.2

 

$

9.8

 

$

10.3

 

$

10.9

 

$

11.2

 

$

13.1

 

$

13.9

 

$

14.6

 

$

14.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Deposits (and other Customer Liability Balances)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Banking Deposits

 

$

33.1

 

$

32.2

 

$

33.4

 

$

33.6

 

$

34.3

 

$

38.1

 

$

39.0

 

$

40.3

 

$

41.4

 

 

 

 

 

 

 

Transaction Services

 

9.0

 

11.0

 

11.0

 

11.0

 

12.0

 

12.0

 

18.0

 

20.0

 

20.0

 

 

 

 

 

 

 

Global Wealth Management

 

5.0

 

5.0

 

6.0

 

7.0

 

7.0

 

9.0

 

9.0

 

10.0

 

9.0

 

 

 

 

 

 

 

Total

 

$

47.1

 

$

48.2

 

$

50.4

 

$

51.6

 

$

53.3

 

$

59.1

 

$

66.0

 

$

70.3

 

$

70.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Wealth Management Assets Under Fee-Based Management

 

$

11

 

$

12

 

$

12

 

$

12

 

$

13

 

$

14

 

$

14

 

$

14

 

$

13

 

 

 

 

 

 

 

Global Wealth Management Total Client Assets

 

$

32

 

$

33

 

$

35

 

$

38

 

$

44

 

$

48

 

$

49

 

$

47

 

$

47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Banking Investment Sales

 

$

18.6

 

$

18.6

 

$

17.7

 

$

15.8

 

$

18.3

 

$

17.5

 

$

16.2

 

$

13.2

 

$

14.6

 

 

 

 

 

 

 

Consumer Banking Investment AUMs

 

$

25.6

 

$

26.5

 

$

27.6

 

$

28.3

 

$

30.2

 

$

32.1

 

$

33.4

 

$

33.9

 

$

34.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branches / Offices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Citibank

 

1,583

 

1,628

 

1,661

 

1,742

 

1,838

 

1,954

 

1,977

 

2,063

 

2,066

 

 

 

 

 

 

 

CitiFinancial

 

468

 

500

 

562

 

649

 

672

 

672

 

674

 

671

 

568

 

 

 

 

 

 

 

Global Wealth Management Offices

 

13

 

13

 

13

 

13

 

13

 

12

 

13

 

13

 

11

 

 

 

 

 

 

 

Total

 

2,064

 

2,141

 

2,236

 

2,404

 

2,523

 

2,638

 

2,664

 

2,747

 

2,645

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Loans Excluding GWM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Loss Ratio

 

2.62

%

3.60

%

4.16

%

4.69

%

4.89

%

3.48

%

5.86

%

5.86

%

6.96

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans 90+Days Past Due (in millions)

 

$

581

 

$

649

 

$

719

 

$

744

 

$

720

 

$

844

 

$

891

 

$

1,008

 

$

1,121

 

 

 

 

 

 

 

% of EOP Loans

 

3.51

%

3.59

%

3.75

%

3.56

%

3.18

%

3.30

%

3.30

%

3.48

%

3.86

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassified to conform to the current period’s presentation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22



 

ASIA

Page 1

(In millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Full

 

Full

 

Full

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

Year

 

Year

 

Year

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

2005

 

2006

 

2007

 

ASIA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Revenue

 

$

1,986

 

$

1,983

 

$

2,005

 

$

1,369

 

$

2,103

 

$

1,920

 

$

2,162

 

$

2,105

 

$

2,419

 

$

6,589

 

$

7,343

 

$

8,290

 

Non-Interest Revenue

 

1,565

 

1,554

 

1,385

 

1,943

 

1,718

 

2,870

 

2,657

 

3,293

 

2,168

 

6,410

 

6,447

 

10,538

 

Total Revenues, Net of Interest Expense

 

3,551

 

3,537

 

3,390

 

3,312

 

3,821

 

4,790

 

4,819

 

5,398

 

4,587

 

12,999

 

13,790

 

18,828

 

Total Operating Expenses

 

1,787

 

1,805

 

1,738

 

2,098

 

1,909

 

2,465

 

2,928

 

2,843

 

2,834

 

6,314

 

7,428

 

10,145

 

Net Credit Losses

 

352

 

395

 

459

 

512

 

475

 

497

 

531

 

560

 

599

 

1,436

 

1,718

 

2,063

 

Credit Reserve Build / (Release)

 

5

 

(78

)

45

 

(50

)

68

 

11

 

301

 

(47

)

128

 

(29

)

(78

)

333

 

Provision for Benefits & Claims

 

1

 

 

(1

)

1

 

 

 

 

 

 

(1

)

1

 

 

Provision for Loan Losses and for Benefits and Claims

 

358

 

317

 

503

 

463

 

543

 

508

 

832

 

513

 

727

 

1,406

 

1,641

 

2,396

 

Income Before Taxes and Minority Interest

 

1,406

 

1,415

 

1,149

 

751

 

1,369

 

1,817

 

1,059

 

2,042

 

1,026

 

5,279

 

4,721

 

6,287

 

Income Taxes

 

344

 

428

 

301

 

146

 

297

 

533

 

249

 

518

 

273

 

1,504

 

1,219

 

1,597

 

Minority Interest, Net of Tax

 

1

 

1

 

 

 

 

34

 

 

63

 

(12

)

(1

)

2

 

97

 

Net Income

 

$

1,061

 

$

986

 

$

848

 

$

605

 

$

1,072

 

$

1,250

 

$

810

 

$

1,461

 

$

765

 

$

3,776

 

$

3,500

 

$

4,593

 

Average Assets (in billions of dollars)

 

$

217

 

$

229

 

$

225

 

$

235

 

$

249

 

$

298

 

$

375

 

$

362

 

$

364

 

$

213

 

$

227

 

$

321

 

Return on Assets

 

1.98

%

1.73

%

1.50

%

1.02

%

1.75

%

1.68

%

0.86

%

1.60

%

0.85

%

1.77

%

1.54

%

1.43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSUMER FINANCE JAPAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Revenue

 

$

562

 

$

586

 

$

557

 

$

(139

)

$

415

 

$

344

 

$

263

 

$

113

 

$

264

 

$

2,394

 

$

1,566

 

$

1,135

 

Non-Interest Revenue

 

3

 

(2

)

(2

)

11

 

7

 

1

 

1

 

13

 

13

 

(10

)

10

 

22

 

Total Revenues, Net of Interest Expense

 

565

 

584

 

555

 

(128

)

422

 

345

 

264

 

126

 

277

 

2,384

 

1,576

 

1,157

 

Total Operating Expenses

 

178

 

171

 

151

 

213

 

126

 

102

 

251

 

97

 

95

 

749

 

713

 

576

 

Net Credit Losses

 

215

 

242

 

277

 

266

 

302

 

302

 

324

 

314

 

317

 

985

 

1,000

 

1,242

 

Credit Reserve Build / (Release)

 

 

5

 

112

 

 

4

 

14

 

161

 

 

 

 

117

 

179

 

Provision for Benefits & Claims

 

1

 

 

(1

)

1

 

 

 

 

 

 

(1

)

1

 

 

Provision for Loan Losses and for Benefits and Claims

 

216

 

247

 

388

 

267

 

306

 

316

 

485

 

314

 

317

 

984

 

1,118

 

1,421

 

Income Before Taxes and Minority Interest

 

171

 

166

 

16

 

(608

)

(10

)

(73

)

(472

)

(285

)

(135

)

651

 

(255

)

(840

)

Income Taxes

 

51

 

50

 

(1

)

(222

)

(12

)

(33

)

(174

)

(101

)

(49

)

200

 

(122

)

(320

)

Minority Interest, Net of Tax

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

120

 

$

116

 

$

17

 

$

(386

)

$

2

 

$

(40

)

$

(298

)

$

(184

)

$

(86

)

$

451

 

$

(133

)

$

(520

)

Average Assets (in billions of dollars)

 

$

10

 

$

11

 

$

11

 

$

11

 

$

10

 

$

10

 

$

9

 

$

9

 

$

9

 

$

11

 

$

11

 

$

10

 

Return on Assets

 

4.87

%

4.23

%

0.61

%

(13.92

)%

0.08

%

(1.60

)%

(13.14

)%

(8.11

)%

(3.84

)%

4.10

%

(1.21

)%

(5.20

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASIA EXCLUDING CONSUMER FINANCE JAPAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Revenue

 

$

1,424

 

$

1,397

 

$

1,448

 

$

1,508

 

$

1,688

 

$

1,576

 

$

1,899

 

$

1,992

 

$

2,155

 

$

4,195

 

$

5,777

 

$

7,155

 

Non-Interest Revenue

 

1,562

 

1,556

 

1,387

 

1,932

 

1,711

 

2,869

 

2,656

 

3,280

 

2,155

 

6,420

 

6,437

 

10,516

 

Total Revenues, Net of Interest Expense

 

2,986

 

2,953

 

2,835

 

3,440

 

3,399

 

4,445

 

4,555

 

5,272

 

4,310

 

10,615

 

12,214

 

17,671

 

Total Operating Expenses

 

1,609

 

1,634

 

1,587

 

1,885

 

1,783

 

2,363

 

2,677

 

2,746

 

2,739

 

5,565

 

6,715

 

9,569

 

Net Credit Losses

 

137

 

153

 

182

 

246

 

173

 

195

 

207

 

246

 

282

 

451

 

718

 

821

 

Credit Reserve Build / (Release)

 

5

 

(83

)

(67

)

(50

)

64

 

(3

)

140

 

(47

)

128

 

(29

)

(195

)

154

 

Provision for Benefits & Claims

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Loan Losses and for Benefits and Claims

 

142

 

70

 

115

 

196

 

237

 

192

 

347

 

199

 

410

 

422

 

523

 

975

 

Income Before Taxes and Minority Interest

 

1,235

 

1,249

 

1,133

 

1,359

 

1,379

 

1,890

 

1,531

 

2,327

 

1,161

 

4,628

 

4,976

 

7,127

 

Income Taxes

 

293

 

378

 

302

 

368

 

309

 

566

 

423

 

587

 

322

 

1,304

 

1,341

 

1,885

 

Minority Interest, Net of Tax

 

1

 

1

 

 

 

 

34

 

 

95

 

(12

)

(1

)

2

 

129

 

Net Income

 

$

941

 

$

870

 

$

831

 

$

991

 

$

1,070

 

$

1,290

 

$

1,108

 

$

1,645

 

$

851

 

$

3,325

 

$

3,633

 

$

5,113

 

Average Assets (in billions of dollars)

 

$

207

 

$

218

 

$

214

 

$

224

 

$

239

 

$

288

 

$

366

 

$

353

 

$

355

 

$

202

 

$

216

 

$

311

 

Return on Assets

 

1.84

%

1.60

%

1.54

%

1.76

%

1.82

%

1.80

%

1.20

%

1.85

%

0.96

%

1.65

%

1.68

%

1.64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassified to conform to the current period’s presentation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23



 

ASIA
Page 2
(In millions of dollars)

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Drivers (in billions of dollars, except branches):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cards

 

$

11.7

 

$

12.0

 

$

12.3

 

$

12.9

 

$

13.2

 

$

13.9

 

$

14.8

 

$

16.0

 

$

17.1

 

Consumer Banking (excluding CF Japan)

 

37.1

 

37.8

 

39.1

 

41.5

 

43.4

 

45.3

 

46.4

 

49.5

 

51.9

 

Corporate

 

35.5

 

39.8

 

41.1

 

42.2

 

42.7

 

46.9

 

48.4

 

48.3

 

45.2

 

Global Wealth Management

 

7.9

 

8.1

 

7.9

 

8.0

 

8.0

 

9.1

 

11.3

 

11.6

 

12.4

 

 

 

92.2

 

97.7

 

100.4

 

104.6

 

107.3

 

115.2

 

120.9

 

125.4

 

126.6

 

Consumer Finance Japan

 

9.6

 

9.9

 

9.7

 

9.5

 

9.0

 

8.5

 

8.5

 

8.5

 

8.9

 

Total

 

$

101.8

 

$

107.6

 

$

110.1

 

$

114.1

 

$

116.3

 

$

123.7

 

$

129.4

 

$

133.9

 

$

135.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Consumer Banking Loans (excluding CF Japan)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential Real Estate

 

$

20.6

 

$

20.7

 

$

21.8

 

$

23.2

 

$

23.9

 

$

24.6

 

$

24.7

 

$

26.5

 

$

28.4

 

Personal

 

7.0

 

7.4

 

7.7

 

8.3

 

8.6

 

9.3

 

9.9

 

10.7

 

11.1

 

Commercial and other

 

9.5

 

9.7

 

9.6

 

10.0

 

10.9

 

11.4

 

11.8

 

12.3

 

12.4

 

Total

 

$

37.1

 

$

37.8

 

$

39.1

 

$

41.5

 

$

43.4

 

$

45.3

 

$

46.4

 

$

49.5

 

$

51.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Deposits (and other Customer Liability Balances)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Banking Deposits

 

$

80.4

 

$

81.6

 

$

82.4

 

$

83.9

 

$

86.6

 

$

87.7

 

$

88.8

 

$

92.9

 

$

97.7

 

Transaction Services

 

61.0

 

68.0

 

66.0

 

70.0

 

73.0

 

80.0

 

90.0

 

97.0

 

97.0

 

Global Wealth Management

 

18.4

 

18.7

 

19.5

 

20.8

 

19.4

 

18.4

 

18.6

 

21.0

 

21.0

 

Total

 

$

159.8

 

$

168.3

 

$

167.9

 

$

174.7

 

$

179.0

 

$

186.1

 

$

197.4

 

$

210.9

 

$

215.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Wealth Management Assets Under Fee-Based Management

 

$

8

 

$

8

 

$

8

 

$

9

 

$

9

 

$

76

 

$

78

 

$

81

 

$

84

 

Global Wealth Management Total Client Assets

 

$

48

 

$

48

 

$

50

 

$

54

 

$

72

 

$

296

 

$

310

 

$

312

 

$

322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Banking Investment Sales

 

$

7.4

 

$

8.5

 

$

6.9

 

$

8.3

 

$

10.9

 

$

13.6

 

$

13.8

 

$

16.0

 

$

10.0

 

Consumer Banking Investment AUMs

 

$

40.0

 

$

40.6

 

$

43.3

 

$

46.2

 

$

48.1

 

$

52.4

 

$

57.1

 

$

59.1

 

$

54.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Branches / Offices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Citibank

 

428

 

429

 

430

 

437

 

428

 

428

 

434

 

484

 

492

 

CitiFinancial (excluding Japan)

 

489

 

547

 

582

 

641

 

640

 

641

 

643

 

662

 

612

 

Global Wealth Management Offices

 

22

 

22

 

22

 

22

 

23

 

132

 

133

 

136

 

136

 

 

 

939

 

998

 

1,034

 

1,100

 

1,091

 

1,201

 

1,201

 

1,282

 

1,240

 

Consumer Finance Japan

 

325

 

324

 

324

 

135

 

51

 

51

 

51

 

51

 

41

 

Total

 

1,264

 

1,322

 

1,358

 

1,235

 

1,142

 

1,252

 

1,261

 

1,333

 

1,281

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Loans Excluding GWM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Loss Ratio

 

2.53

%

2.67

%

2.98

%

2.85

%

2.95

%

2.95

%

3.02

%

2.89

%

2.99

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans 90+Days Past Due (in millions)

 

$

641

 

$

685

 

$

684

 

$

666

 

$

658

 

$

657

 

$

697

 

$

706

 

$

765

 

% of EOP Loans

 

1.11

%

1.14

%

1.10

%

1.02

%

0.99

%

0.96

%

0.98

%

0.93

%

0.98

%

 

Reclassified to conform to the current period’s presentation.

 

24



 

CITIGROUP — RETURN ON CAPITAL (1)

 

 

 

Average Risk Capital ($M) (2)

 

Return on Risk Capital

 

Return on Invested Capital

 

 

 

First

 

Fourth

 

First

 

First

 

Fourth

 

First

 

First

 

Fourth

 

First

 

 

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

 

 

2007

 

2007

 

2008

 

2007

 

2007

 

2008

 

2007

 

2007

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

$

8,216

 

$

9,412

 

$

14,799

 

62

%

40

%

34

%

26

%

18

%

18

%

Consumer Banking

 

20,920

 

20,909

 

28,088

 

24

%

(8

)%

2

%

13

%

(3

)%

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institutional Clients Group (ICG):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities and Banking

 

28,031

 

43,599

 

52,617

 

36

%

(104

)%

(54

)%

27

%

(82

)%

(43

)%

Transaction Services

 

1,442

 

1,807

 

2,245

 

126

%

146

%

131

%

67

%

69

%

66

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Institutional Clients Group (ICG):

 

29,473

 

45,405

 

54,862

 

40

%

(94

)%

(47

)%

30

%

(73

)%

(36

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Wealth Management

 

2,879

 

3,781

 

4,509

 

63

%

55

%

26

%

39

%

24

%

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate / Other

 

3,236

 

5,276

 

4,856

 

NM

 

NM

 

NM

 

NM

 

NM

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Citigroup - Risk Capital (2)

 

$

64,724

 

$

84,783

 

$

107,114

 

31

%

(46

)%

(19

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Citigroup - Return on Invested Capital (2) (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

17

%

(32

)%

(19

)%

 


(1)

Risk Capital is defined as the amount of capital needed to cover unexpected economic losses during extreme events. Return on Risk Capital is defined as income divided by Risk Capital. Return on Invested Capital is a similar calculation but includes adjustments for goodwill and intangibles in both the numerator and denominator, similar to those necessary to translate return on tangible equity to return on total equity. Return on Risk Capital and Return on Invested Capital are non-GAAP performance measures. Management believes Return on Risk Capital is useful to make incremental investment decisions and serves as a key metric for organic growth initiatives. Return on Invested Capital is used for multi-year investment decisions and as a long term performance measure.

 

 

(2)

Average Risk Capital is net of the cross-sector diversification.  Average Invested Capital includes the difference between Tangible Equity and Risk Capital, which is also included in the Total Citigroup Return on Invested Capital.

 

 

(3)

Total Citigroup Return on Invested Capital equals Citigroup Return on Common Equity.

 

NM  Not meaningful

 

Reclassified to conform to the current period’s presentation.

 

25



 

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

 

 

 

Average Volumes

 

Interest

 

% Average Rate (4)

 

 

 

First

 

Fourth

 

First

 

First

 

Fourth

 

First

 

First

 

Fourth

 

First

 

 

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

Quarter

 

In millions of dollars

 

2007

 

2007

 

2008

 

2007

 

2007

 

2008

 

2007

 

2007

 

2008

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits with Banks

 

$

45,306

 

$

63,902

 

$

65,460

 

$

709

 

$

825

 

$

805

 

6.35

%

5.12

%

4.95

%

Fed Funds Sold and Resale Agreements (6)

 

293,295

 

314,691

 

282,315

 

4,289

 

4,313

 

3,172

 

5.93

%

5.44

%

4.52

%

Trading Account Assets (7)

 

370,251

 

460,489

 

434,869

 

3,930

 

5,036

 

4,799

 

4.30

%

4.34

%

4.44

%

Investments (1)

 

284,261

 

234,760

 

218,371

 

3,540

 

3,013

 

2,699

 

5.05

%

5.09

%

4.97

%

Consumer Loans

 

499,654

 

579,008

 

583,630

 

11,231

 

13,212

 

12,836

 

9.12

%

9.05

%

8.85

%

Corporate Loans

 

164,788

 

199,974

 

196,557

 

3,409

 

4,353

 

4,057

 

8.39

%

8.64

%

8.30

%

Total Loans (net of Unearned Income)

 

664,442

 

778,982

 

780,187

 

14,640

 

17,565

 

16,893

 

8.94

%

8.95

%

8.71

%

Other Interest-Earning Assets

 

68,379

 

114,484

 

119,148

 

764

 

1,598

 

1,334

 

4.53

%

5.54

%

4.50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Average Interest-Earning Assets

 

$

1,725,934

 

$

1,967,308

 

$

1,900,350

 

$

27,872

 

$

32,350

 

$

29,702

 

6.55

%

6.52

%

6.29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

648,279

 

$

758,211

 

$

750,897

 

$

6,558

 

$

7,705

 

$

6,300

 

4.10

%

4.03

%

3.37

%

Fed Funds Purchased and Repurchase Agreements (6)

 

366,373

 

365,852

 

329,944

 

5,483

 

5,202

 

3,903

 

6.07

%

5.64

%

4.76

%

Trading Account Liabilities (7)

 

87,659

 

91,843

 

91,145

 

307

 

382

 

333

 

1.42

%

1.65

%

1.47

%

Short-Term Borrowings

 

184,379

 

247,119

 

234,446

 

1,464

 

1,914

 

1,450

 

3.22

%

3.07

%

2.49

%

Long-Term Debt (8)

 

265,630

 

339,359

 

339,577

 

3,532

 

4,586

 

4,317

 

5.39

%

5.36

%

5.11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Average Interest-Bearing Liabilities

 

$

1,552,320

 

$

1,802,384

 

$

1,746,009

 

$

17,344

 

$

19,789

 

$

16,303

 

4.53

%

4.36

%

3.76

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Revenue as a% of Average Interest-Earning Assets (NIM)

 

 

 

 

 

 

 

$

10,528

 

$

12,561

 

$

13,399

 

2.47

%

2.53

%

2.84

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1Q08 Increase From

 

 

 

 

 

 

 

 

 

 

 

 

 

37

bps

31

bps

 

 

 


(1)

Interest Revenue excludes the taxable equivalent adjustments (based on the U.S. federal statutory tax rate of 35%) of $15 million for the 2007 first quarter, $31 million for the 2007 fourth quarter and $48 million for the 2008 first quarter.

 

 

(2)

Citigroup Average Balances and Interest Rates include both domestic and international operations.

 

 

(3)

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

 

 

(4)

Average Rate % is calculated as annualized interest over average volumes.

 

 

(5)

Not Used

 

 

(6)

Average volumes of securities borrowed or purchased under agreements to resell and securities loaned or sold under agreements to repurchase are reported net pursuant to FIN 41; the related interest excludes the impact of FIN 41.

 

 

(7)

Interest expense on trading account liabilities of Markets and 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.

 

 

(8)

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.

 

 

 

In addition, the majority of the funding provided by Corporate Treasury to CitiCapital operations is excluded from this line.

 

Reclassified to conform to the current period’s presentation.

 

26



 

CONSUMER LOAN DELINQUENCY AMOUNTS, NET CREDIT LOSSES AND RATIOS
(In millions of dollars, except loan amounts in billions)

 

 

 

 

 

 

 

 

 

EOP

 

 

 

 

 

 

 

Average

 

 

 

90 Days Or More Past Due (1)

 

Loans

 

Net Credit Losses (1)

 

Loans

 

 

 

1Q07

 

4Q07

 

1Q08

 

1Q08

 

1Q07

 

4Q07

 

1Q08

 

1Q08

 

PRODUCT VIEW:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

661

 

$

896

 

$

826

 

$

40.3

 

$

485

 

$

661

 

$

614

 

$

45.9

 

Ratio

 

1.62

%

1.88

%

2.05

%

 

 

4.49

%

5.47

%

5.39

%

 

 

EMEA

 

153

 

241

 

276

 

17.1

 

62

 

32

 

144

 

16.4

 

Ratio

 

1.91

%

1.52

%

1.61

%

 

 

3.21

%

0.81

%

3.53

%

 

 

LatinAmerica

 

373

 

551

 

539

 

14.4

 

219

 

307

 

359

 

14.1

 

Ratio

 

3.39

%

3.92

%

3.75

%

 

 

8.75

%

9.01

%

10.25

%

 

 

Asia

 

210

 

249

 

256

 

17.1

 

104

 

123

 

135

 

17.1

 

Ratio

 

1.59

%

1.50

%

1.49

%

 

 

3.19

%

3.06

%

3.17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Banking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

3,828

 

6,453

 

7,289

 

306.1

 

575

 

1,071

 

1,539

 

307.2

 

Ratio

 

1.37

%

2.13

%

2.38

%

 

 

0.84

%

1.40

%

2.02

%

 

 

EMEA

 

427

 

398

 

456

 

42.2

 

255

 

273

 

293

 

41.1

 

Ratio

 

1.35

%

1.00

%

1.08

%

 

 

3.31

%

2.67

%

2.86

%

 

 

LatinAmerica

 

346

 

457

 

582

 

14.6

 

39

 

109

 

137

 

14.6

 

Ratio

 

2.96

%

3.07

%

3.98

%

 

 

1.41

%

2.96

%

3.78

%

 

 

Asia

 

448

 

457

 

509

 

61.2

 

373

 

416

 

444

 

60.8

 

Ratio

 

0.84

%

0.77

%

0.83

%

 

 

2.89

%

2.85

%

2.94

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Wealth Management

 

10

 

30

 

31

 

65.5

 

 

 

10

 

64.0

 

Ratio

 

0.02

%

0.05

%

0.05

%

 

 

0.00

%

0.00

%

0.06

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

On-Balance Sheet Loans (2)

 

$

6,456

 

$

9,732

 

$

10,764

 

$

578.5

 

$

2,112

 

$

2,992

 

$

3,675

 

$

581.2

 

Ratio

 

1.30

%

1.70

%

1.86

%

 

 

1.74

%

2.08

%

2.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securitized Receivables (all in NA Cards)

 

1,534

 

1,865

 

2,113

 

109.5

 

1,150

 

1,272

 

1,591

 

105.8

 

Loans Held-for-Sale

 

41

 

14

 

14

 

0.9

 

 

 

 

1.0

 

Managed Loans (3)

 

$

8,031

 

$

11,611

 

$

12,891

 

$

688.9

 

$

3,262

 

$

4,264

 

$

5,266

 

$

688.0

 

Ratio

 

1.33

%

1.70

%

1.87

%

 

 

2.23

%

2.51

%

3.08

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REGIONAL VIEW:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

4,495

 

$

7,375

 

$

8,144

 

$

387.5

 

$

1,060

 

$

1,732

 

$

2,153

 

$

393.0

 

Ratio

 

1.28

%

1.89

%

2.10

%

 

 

1.23

%

1.77

%

2.20

%

 

 

EMEA

 

582

 

640

 

733

 

68.5

 

317

 

305

 

437

 

66.7

 

Ratio

 

1.27

%

0.99

%

1.07

%

 

 

2.89

%

1.86

%

2.63

%

 

 

LatinAmerica

 

720

 

1,008

 

1,120

 

31.6

 

258

 

416

 

496

 

31.2

 

Ratio

 

2.90

%

3.21

%

3.54

%

 

 

4.43

%

5.36

%

6.41

%

 

 

Asia

 

659

 

709

 

767

 

90.9

 

477

 

539

 

589

 

90.3

 

Ratio

 

0.88

%

0.81

%

0.84

%

 

 

2.62

%

2.50

%

2.62

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

On-Balance Sheet Loans (2)

 

$

6,456

 

$

9,732

 

$

10,764

 

$

578.5

 

$

2,112

 

$

2,992

 

$

3,675

 

$

581.2

 

Ratio

 

1.30

%

1.70

%

1.86

%

 

 

1.74

%

2.08

%

2.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securitized Receivables (all in NA Cards)

 

1,534

 

1,865

 

2,113

 

109.5

 

1,150

 

1,272

 

1,591

 

105.8

 

Loans Held-for-Sale

 

41

 

14

 

14

 

0.9

 

 

 

 

1.0

 

Managed Loans (3)

 

$

8,031

 

$

11,611

 

$

12,891

 

$

688.9

 

$

3,262

 

$

4,264

 

$

5,266

 

$

688.0

 

Ratio

 

1.33

%

1.70

%

1.87

%

 

 

2.23

%

2.51

%

3.08

%

 

 

 


(1)

 

The ratios of 90 days or more past due and net credit losses are calculated based on end-of-period and average loans, respectively, both net of unearned income.

 

 

 

(2)

 

Total Loans and Total Average Loans exclude certain interest and fees on credit cards of approximately $2 billion and $2 billion, respectively, which are included in Consumer Loans on the Consolidated Balance Sheet.

 

 

 

(3)

 

This table presents consumer credit information on a held basis and shows the impact of securitizations to reconcile to a managed basis. Only N.A. Cards from a product view and North America from a regional view are impacted. Managed basis reporting is a non-GAAP measure. Held basis reporting is the related GAAP measure. For a discussion of managed basis reporting see Note 2 to the Global Cards business on page 10.

 

Reclassified to conform to the current period’s presentation.

 

27



 

ALLOWANCE FOR CREDIT LOSSES
TOTAL CITIGROUP
(In millions of dollars)

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses at Beginning of Period

 

$

9,782

 

$

9,505

 

$

9,144

 

$

8,979

 

$

8,940

 

$

9,510

 

$

10,381

 

$

12,728

 

$

16,117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Credit (Losses)

 

(2,157

)

(2,332

)

(2,344

)

(2,614

)

(2,642

)

(2,636

)

(3,075

)

(4,262

)

(4,313

)

Gross Recoveries

 

572

 

547

 

546

 

491

 

549

 

601

 

499

 

575

 

537

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit (Losses) / Recoveries (NCL’s)

 

(1,585

)

(1,785

)

(1,798

)

(2,123

)

(2,093

)

(2,035

)

(2,576

)

(3,687

)

(3,776

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NCL’s

 

1,585

 

1,785

 

1,798

 

2,123

 

2,093

 

2,035

 

2,576

 

3,687

 

3,776

 

Reserve Releases (1)

 

(241

)

(431

)

(250

)

(146

)

(36

)

 

 

(4

)

(29

)

Reserve Builds (1)

 

104

 

161

 

257

 

138

 

616

 

534

 

2,041

 

3,517

 

1,811

 

Specific Reserve Releases / Utilizations

 

(89

)

(87

)

(11

)

(17

)

(30

)

(65

)

(50

)

(9

)

(35

)

Specific Reserve Builds

 

6

 

11

 

13

 

21

 

43

 

 

197

 

205

 

170

 

Build(Release/Utilization)for Purchased Distressed Loan Portfolios

 

22

 

(27

)

3

 

(11

)

3

 

9

 

(2

)

2

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Loan Losses

 

1,387

 

1,412

 

1,810

 

2,108

 

2,689

 

2,513

 

4,762

 

7,398

 

5,701

 

Other (2)

 

(79

)

12

 

(177

)

(24

)

(26

)

393

 

161

 

(322

)

215

 

Allowance for Loan Losses at End of Period (a)

 

$

9,505

 

$

9,144

 

$

8,979

 

$

8,940

 

$

9,510

 

$

10,381

 

$

12,728

 

$

16,117

 

$

18,257

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Allowance for Unfunded Lending Commitments (3) (a)

 

$

900

 

$

1,050

 

$

1,100

 

$

1,100

 

$

1,100

 

$

1,100

 

$

1,150

 

$

1,250

 

$

1,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Unfunded Lending Commitments

 

$

50

 

$

150

 

$

50

 

$

 

$

 

$

 

$

50

 

$

100

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Allowance for Loans, Leases and Unfunded Lending Commitments [Sum of (a)]

 

$

10,405

 

$

10,194

 

$

10,079

 

$

10,040

 

$

10,610

 

$

11,481

 

$

13,878

 

$

17,367

 

$

19,507

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Allowance for Loans, Leases and Unfunded Lending Commitments as a Percentage of Total Loans

 

1.72

%

1.60

%

1.54

%

1.48

%

1.53

%

1.55

%

1.79

%

2.23

%

2.47

%

 


(1)

 

Allowance for Credit Losses represents management’s estimate of probable losses inherent in the portfolio. Attribution of the allowance is made for analytical purposes only, and the entire allowance is available to absorb probable credit losses inherent in the portfolio.

 

 

 

(2)

 

Includes all adjustments to the Allowance for Credit Losses, such as changes in the allowance from acquisitions, securitizations, foreign exchange translation, purchase accounting adjustments, etc. The significant items reported on this line for the periods presented include:

 

 

 

 

 

·

For the 2008 first quarter, reductions to the credit loss reserves of $58 million related to securitizations and additions of $50 million related to purchase price adjustments for the Bank of Overseas Chinese acquisition.

 

 

 

 

 

 

·

For the 2007 fourth quarter, reductions to the credit loss reserves of $150 million related to securitizations and $7 million related to transfers to loans held-for-sale, reductions of $151 million related to purchase price adjustments for the Egg Bank acquisition and reductions of $83 million related to the transfer of the U.K. CitiFinancial portfolio to held-for-sale.

 

 

 

 

 

 

·

For the 2007 third quarter, reductions to the credit loss reserves of $73 million related to securitizations. Additionally includes adjustments for purchase accounting relating to the acquisition of Grupo Cuscatlan of $181 million.

 

 

·

For the 2007 second quarter, reductions to the credit loss reserves of $70 million related to securitizations and $77 million related to transfers to loans held-for-sale, and the addition of $505 million related to the acquisition of Egg and Nikko.

 

 

 

 

 

 

·

For the 2007 first quarter, reductions to the credit loss reserves of $98 million related to securitizations and transfers to loans held-for-sale, and the addition of $75 million related to the acquisition of Grupo Financiero Uno.

 

 

 

 

(3)

 

Represents additional credit reserves recorded as other liabilities on the Consolidated Balance Sheet.

 

28



 

ALLOWANCE FOR CREDIT LOSSES
CONSUMER LOANS (1)
(In millions of dollars)

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses at Beginning of Period

 

$

6,922

 

$

6,647

 

$

6,311

 

$

6,087

 

$

6,006

 

$

6,348

 

$

7,210

 

$

9,203

 

$

12,393

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Credit (Losses)

 

(2,116

)

(2,213

)

(2,301

)

(2,505

)

(2,603

)

(2,586

)

(2,981

)

(3,497

)

(4,176

)

Gross Recoveries

 

498

 

470

 

493

 

463

 

491

 

512

 

439

 

505

 

501

 

Net Credit (Losses) / Recoveries (NCL’s)

 

(1,618

)

(1,743

)

(1,808

)

(2,042

)

(2,112

)

(2,074

)

(2,542

)

(2,992

)

(3,675

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NCL’s

 

1,618

 

1,743

 

1,808

 

2,042

 

2,112

 

2,074

 

2,542

 

2,992

 

3,675

 

Reserve Releases (2)

 

(241

)

(431

)

(250

)

(146

)

(26

)

 

 

(4

)

(29

)

Reserve Builds (2)

 

104

 

86

 

182

 

138

 

316

 

528

 

2,040

 

3,513

 

1,811

 

Specific Reserve Releases / Utilizations

 

(36

)

(3

)

 

(11

)

(5

)

(31

)

(10

)

(5

)

(3

)

Specific Reserve Builds

 

 

7

 

10

 

1

 

37

 

 

36

 

20

 

2

 

Build(Release/Utilization)for Purchased Distressed Loan Portfolios

 

 

 

 

 

 

 

 

 

 

Provision for Loan Losses

 

1,445

 

1,402

 

1,750

 

2,024

 

2,434

 

2,571

 

4,608

 

6,516

 

5,456

 

Other (3)

 

(102

)

5

 

(166

)

(63

)

20

 

365

 

(73

)

(334

)

194

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses at End of Period

 

$

6,647

 

$

6,311

 

$

6,087

 

$

6,006

 

$

6,348

 

$

7,210

 

$

9,203

 

$

12,393

 

$

14,368

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Consumer Credit (Losses) as a Percentage of Average Consumer Loans

 

1.50

%

1.53

%

1.54

%

1.69

%

1.74

%

1.60

%

1.86

%

2.08

%

2.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Allowance for Credit Losses As a Percentage of Total Consumer Loans

 

1.44

%

1.31

%

1.25

%

1.17

%

1.22

%

1.31

%

1.61

%

2.09

%

2.41

%

 


(1)

 

Includes loans made to Global Wealth Management clients.

 

 

 

(2)

 

Allowance for Credit Losses represents management’s estimate of probable losses inherent in the portfolio. Attribution of the allowance is made for analytical purposes only, and the entire allowance is available to absorb probable credit losses inherent in the portfolio.

 

 

 

(3)

 

Includes all adjustments to the Allowance for Credit Losses, such as changes in the allowance from acquisitions, securitizations, foreign exchange translation, purchase accounting adjustments, etc. The significant items reported on this line for the periods presented include:

 

 

 

 

 

·

For the 2008 first quarter, reductions to the credit loss reserves of $58 million related to securitizations and additions of $50 million related to purchase price adjustments for the Bank of Overseas Chinese acquisition.

 

 

 

 

 

 

·

For the 2007 fourth quarter, reductions to the credit loss reserves of $150 million related to securitizations and $7 million related to transfers to loans held-for-sale, reductions of $151 million related to purchase price adjustments for the Egg Bank acquisition and reductions of $83 million related to the transfer of the U.K. CitiFinancial portfolio to held-for-sale.

 

 

 

 

 

 

·

For the 2007 third quarter, reductions to the credit loss reserves of $73 million related to securitizations.

 

 

 

 

 

 

·

For the 2007 second quarter, reductions to the credit loss reserves of $70 million related to securitizations and $77 million related to transfers to loans held-for-sale, and the addition of $505 million related to the acquisition of Egg and Nikko.

 

 

 

 

 

 

·

For the 2007 first quarter, reductions to the credit loss reserves of $98 million related to securitizations and transfers to loans held-for-sale, and the addition of $75 million related to the acquisition of Grupo Financiero Uno. The 2007 first quarter also includes $41million related to the reorganization of the KorAm loan portfolio.

 

29



 

ALLOWANCE FOR CREDIT LOSSES
CORPORATE LOANS (1)
(In millions of dollars)

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses at Beginning of Period

 

$

2,860

 

$

2,858

 

$

2,833

 

$

2,892

 

$

2,934

 

$

3,162

 

$

3,171

 

$

3,525

 

$

3,724

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Credit (Losses)

 

(41

)

(119

)

(43

)

(109

)

(39

)

(50

)

(94

)

(765

)

(137

)

Gross Recoveries

 

74

 

77

 

53

 

28

 

58

 

89

 

60

 

70

 

36

 

Net Credit (Losses) / Recoveries (NCL’s)

 

33

 

(42

)

10

 

(81

)

19

 

39

 

(34

)

(695

)

(101

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NCL’s

 

(33

)

42

 

(10

)

81

 

(19

)

(39

)

34

 

695

 

101

 

Reserve Releases (2)

 

 

 

 

 

(10

)

 

 

 

 

Reserve Builds (2)

 

 

75

 

75

 

 

300

 

6

 

1

 

4

 

 

Specific Reserve Releases / Utilizations

 

(53

)

(84

)

(11

)

(6

)

(25

)

(34

)

(40

)

(4

)

(32

)

Specific Reserve Builds

 

6

 

4

 

3

 

20

 

6

 

 

161

 

185

 

168

 

Build(Release/Utilization)for Purchased Distressed Loan Portfolios

 

22

 

(27

)

3

 

(11

)

3

 

9

 

(2

)

2

 

8

 

Provision for Loan Losses

 

(58

)

10

 

60

 

84

 

255

 

(58

)

154

 

882

 

245

 

Other (3)

 

23

 

7

 

(11

)

39

 

(46

)

28

 

234

 

12

 

21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses at End of Period (a)

 

$

2,858

 

$

2,833

 

$

2,892

 

$

2,934

 

$

3,162

 

$

3,171

 

$

3,525

 

$

3,724

 

$

3,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Corporate Credit (Losses) as a Percentage of Average Corporate Loans

 

NM

 

0.03

%

NM

 

0.05

%

NM

 

NM

 

0.02

%

0.34

%

0.05

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Allowance for Credit Losses As a Percentage of Total Corporate Loans

 

2.00

%

1.81

%

1.73

%

1.76

%

1.81

%

1.66

%

1.74

%

2.01

%

2.02

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Allowance for Unfunded Lending Commitments (4) (a)

 

$

900

 

$

1,050

 

$

1,100

 

$

1,100

 

$

1,100

 

$

1,100

 

$

1,150

 

$

1,250

 

$

1,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Unfunded Lending Commitments

 

$

50

 

$

150

 

$

50

 

$

 

$

 

$

 

$

50

 

$

100

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Corporate Allowance for Loans, Leases and Unfunded Lending Commitments [Sum of (a)]

 

$

3,758

 

$

3,883

 

$

3,992

 

$

4,034

 

$

4,262

 

$

4,273

 

$

4,675

 

$

4,974

 

$

5,139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Allowance for Loans, Leases and Unfunded Lending Commitments as a Percentage of Total Corporate Loans

 

2.62

%

2.48

%

2.39

%

2.43

%

2.45

%

2.23

%

2.30

%

2.68

%

2.66

%

 


(1)

 

Includes Loans related to the Alternative Investments and Corporate / Other segments.

 

 

 

(2)

 

Allowance for Credit Losses represents management’s estimate of probable losses inherent in the portfolio. Attribution of the allowance is made for analytical purposes only, and the entire allowance is available to absorb probable credit losses inherent in the portfolio.

 

 

 

(3)

 

Includes all adjustments to the Allowance for Credit Losses, such as changes in the allowance from acquisitions, securitizations, foreign exchange translation, purchase accounting adjustments, etc. The significant items reported on this line for the periods presented include:

 

 

 

 

 

·

The 2007 first quarter includes the reclassification to Consumer Loans of $41 million related to the reorganization of the KorAm loan portfolio.

 

 

·

The 2007 second quarter includes the acquisition of Grupo Cuscatlan of $18 million.

 

 

·

The 2007 third quarter includes adjustments for purchase accounting relating to the acquisition of Grupo Cuscatlan of $181 million and the transfer of units into Markets & Banking that were previously held as Consumer of $43 million.

 

 

·

The 2008 first quarter includes adjustments for the transfer of business units from U.S. Consumer to Markets & Banking of $21 million and ($15) million for the release of reserves related to the contribution of certain assets of Citi Chile to Banco de Chile.

 

 

 

 

(4)

 

Represents additional credit reserves recorded as other liabilities on the Consolidated Balance Sheet.

 

30



 

CITIGROUP – COMPONENTS OF PROVISION FOR LOAN LOSSES
(In millions of dollars)

 

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

 

 

2006

 

2006

 

2006

 

2006

 

2007

 

2007

 

2007

 

2007

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

$

692

 

$

811

 

$

842

 

$

887

 

$

870

 

$

850

 

$

1,049

 

$

1,123

 

$

1,252

 

Credit Reserve Build / (Release)

 

13

 

(137

)

(65

)

43

 

(9

)

425

 

506

 

653

 

623

 

North America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

474

 

478

 

495

 

484

 

485

 

453

 

455

 

661

 

614

 

Credit Reserve Build / (Release)

 

(80

)

(164

)

(124

)

(43

)

(31

)

223

 

172

 

544

 

313

 

EMEA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

63

 

118

 

55

 

87

 

62

 

82

 

179

 

32

 

144

 

Credit Reserve Build / (Release)

 

 

(42

)

15

 

6

 

13

 

71

 

71

 

(7

)

37

 

Latin America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

73

 

113

 

172

 

195

 

219

 

200

 

299

 

307

 

359

 

Credit Reserve Build / (Release)

 

27

 

32

 

78

 

110

 

3

 

139

 

168

 

81

 

249

 

Asia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

82

 

102

 

120

 

121

 

104

 

115

 

116

 

123

 

135

 

Credit Reserve Build / (Release)

 

66

 

37

 

(34

)

(30

)

6

 

(8

)

95

 

35

 

24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Banking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

$

931

 

$

932

 

$

966

 

$

1,155

 

$

1,242

 

$

1,224

 

$

1,492

 

$

1,869

 

$

2,413

 

Credit Reserve Build / (Release)

 

(196

)

(212

)

(9

)

(56

)

314

 

60

 

1,504

 

2,856

 

1,147

 

North America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

429

 

419

 

435

 

556

 

575

 

620

 

749

 

1,071

 

1,539

 

Credit Reserve Build / (Release)

 

(103

)

(124

)

(51

)

(70

)

224

 

24

 

1,122

 

2,748

 

1,033

 

EMEA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

186

 

174

 

165

 

216

 

255

 

206

 

240

 

273

 

293

 

Credit Reserve Build / (Release)

 

(17

)

(27

)

15

 

18

 

59

 

3

 

123

 

78

 

20

 

Latin America

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

35

 

43

 

25

 

44

 

39

 

15

 

88

 

109

 

137

 

Credit Reserve Build / (Release)

 

(15

)

17

 

(40

)

3

 

 

24

 

59

 

32

 

(5

)

Asia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

281

 

296

 

341

 

339

 

373

 

383

 

415

 

416

 

444

 

Credit Reserve Build / (Release)

 

(61

)

(78

)

67

 

(7

)

31

 

9

 

200

 

(2

)

99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Wealth Management:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

(5

)

 

 

 

 

 

1

 

 

10

 

Credit Reserve Build / (Release)

 

10

 

8

 

16

 

(5

)

17

 

12

 

56

 

15

 

11

 

Consumer Provision for Loan Losses

 

1,445

 

1,402

 

1,750

 

2,024

 

2,434

 

2,571

 

4,608

 

6,516

 

5,456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Instituitional Clients Group (ICG):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

(32

)

42

 

(9

)

77

 

(20

)

(37

)

35

 

695

 

101

 

Credit Reserve Build / (Release)

 

(25

)

(32

)

70

 

3

 

274

 

(19

)

120

 

187

 

144

 

Securities and Banking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

(36

)

25

 

(10

)

71

 

(25

)

(38

)

31

 

681

 

101

 

Credit Reserve Build / (Release)

 

(21

)

(19

)

64

 

3

 

274

 

(12

)

120

 

216

 

142

 

Transaction Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

4

 

17

 

1

 

6

 

5

 

1

 

4

 

14

 

 

Credit Reserve Build / (Release)

 

(4

)

(13

)

6

 

 

 

(7

)

 

(29

)

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate / Other

 

(1

)

 

(1

)

4

 

1

 

(2

)

(1

)

 

 

Corporate Provision for Loan Losses

 

(58

)

10

 

60

 

84

 

255

 

(58

)

154

 

882

 

245

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Provision for Loan Losses

 

$

1,387

 

$

1,412

 

$

1,810

 

$

2,108

 

$

2,689

 

$

2,513

 

$

4,762

 

$

7,398

 

$

5,701

 

 

NM Not meaningful

Reclassified to conform to the current period’s presentation.

 

31



 

NON-PERFORMING ASSETS
(In millions of dollars)

 

 

 

1Q

 

2Q

 

3Q

 

4Q

 

1Q

 

 

 

2007

 

2007

 

2007

 

2007

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH-BASIS AND RENEGOTIATED LOANS

 

 

 

 

 

 

 

 

 

 

 

Corporate Cash-Basis Loans

 

 

 

 

 

 

 

 

 

 

 

Collateral Dependent (at lower of cost or collateral value)

 

$

19

 

$

11

 

$

11

 

$

11

 

$

6

 

Other

 

481

 

588

 

1,207

 

1,747

 

2,028

 

Total Corporate Cash-Basis Loans (1)

 

$

500

 

$

599

 

$

1,218

 

$

1,758

 

$

2,034

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Cash-Basis Loans

 

 

 

 

 

 

 

 

 

 

 

JENA (2)

 

$

118

 

$

204

 

$

841

 

$

1,320

 

$

1,577

 

Other International (3)

 

382

 

395

 

377

 

438

 

457

 

Total Corporate Cash-Basis Loans (1)

 

$

500

 

$

599

 

$

1,218

 

$

1,758

 

$

2,034

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Cash-Basis Loans as a% of

 

 

 

 

 

 

 

 

 

 

 

Total Corporate Loans (1)

 

0.29

%

0.31

%

0.60

%

0.95

%

1.05

%

 

 

 

 

 

 

 

 

 

 

 

 

Total Consumer Cash-Basis Loans (1)

 

$

4,578

 

$

5,160

 

$

6,137

 

$

7,210

 

$

8,301

 

Renegotiated Loans (includes Corporate and Commercial Business Loans)

 

$

26

 

$

27

 

$

56

 

$

118

 

$

174

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

$

470

 

$

524

 

$

596

 

$

716

 

$

1,008

 

Markets & Banking

 

348

 

219

 

348

 

512

 

545

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL OTHER REAL ESTATE OWNED (4)

 

$

818

 

$

743

 

$

944

 

$

1,228

 

$

1,553

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER REPOSSESSED ASSETS (5)

 

$

77

 

$

66

 

$

86

 

$

99

 

$

107

 

 


(1)               Excludes purchased distressed loans. The carrying value of these loans was: $957 million at March 31, 2007, $1,013 million at June 30, 2007, $1,188 at September 30, 2007, $2,399 million at December 31, 2007 and $2,224 million at March 31, 2008.

 

(2)               JENA includes Japan, Western Europe and North America.

 

(3)               Other International includes Asia (excluding Japan), Mexico, Latin America, Central and Eastern Europe, the Middle East and Africa.

 

(4)               Represents repossessed real estate, carried at lower of cost or fair value, less costs to sell.

 

(5)               Primarily transportation equipment, carried at lower of cost or fair value, less costs to sell.

 

*** END OF FILE ***

 

32