EX-99.01 2 a09-3547_1ex99d01.htm EX-99.01

Exhibit 99.01

 

THE COMPANY

 

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

 

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

 

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

 

Citigroup is managed along the following segment and regional lines:

 

CITIGROUP SEGMENTS

 

Global
Cards

 

Consumer
Banking

 

Institutional
Clients Group
(ICG)

 

Global Wealth
Management
(GWM)

 

Corporate /
Other

· MasterCard, VISA, Diners Club, private label and American Express

· Sales finance

 

· Retail Banking

· Consumer Finance

· Real estate lending

· Personal loans

· Retail banking

· Investment services

· Auto loans

· Small and middle market commercial banking

· Primerica Financial Services

 

· Securities and Banking (S&B)

· Investment banking

· Debt and equity markets

· Lending

· Private equity

· Hedge funds

· Real estate

· Structured products

· Managed futures

· Transaction Services

· Cash management

· Trade services

· Custody and fund services

· Clearing services

· Agency/trust

 

· Smith Barney

· Advisory

· Financial planning

· Brokerage

· Private Bank

· Wealth management services

· Citigroup Investment Research

· Equity and fixed income research

 

· Treasury

· Operations and technology

· Corporate expenses

· Discontinued operations

 

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

 

 

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

 

1


 

FIVE-YEAR SUMMARY OF SELECTED FINANCIAL DATA

 

 

Citigroup Inc. and Subsidiaries

 

 

In millions of dollars, except per share amounts

 

2007

 

2006

 

2005

 

2004

 

2003

 

Revenues, net of interest expense

 

$

78,495

 

$

86,327

 

$

80,077

 

$

76,223

 

$

68,703

 

Operating expenses

 

59,802

 

50,301

 

43,549

 

48,149

 

36,272

 

Provisions for credit losses and for benefits and claims

 

17,917

 

7,537

 

7,971

 

6,658

 

8,241

 

Income from continuing operations before taxes, minority interest, and cumulative effect of accounting change

 

$

776

 

$

28,489

 

$

28,557

 

$

21,416

 

$

24,190

 

Provision (benefits) for income taxes

 

(2,498

)

7,749

 

8,787

 

6,130

 

7,440

 

Minority interest, net of taxes

 

285

 

289

 

549

 

218

 

274

 

Income from continuing operations before cumulative effect of accounting change

 

$

2,989

 

$

20,451

 

$

19,221

 

$

15,068

 

$

16,476

 

Income from discontinued operations, net of taxes (1)

 

628

 

1,087

 

5,417

 

1,978

 

1,377

 

Cumulative effect of accounting change, net of taxes (2)

 

—

 

—

 

(49

)

—

 

—

 

Net income

 

$

3,617

 

$

21,538

 

$

24,589

 

$

17,046

 

$

17,853

 

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.60

 

$

4.17

 

$

3.78

 

$

2.94

 

$

3.22

 

Net income

 

0.73

 

4.39

 

4.84

 

3.32

 

3.49

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

0.59

 

4.09

 

3.71

 

2.88

 

3.16

 

Net income

 

0.72

 

4.31

 

4.75

 

3.26

 

3.42

 

Dividends declared per common share

 

$

2.16

 

$

1.96

 

$

1.76

 

$

1.60

 

$

1.10

 

At December 31

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

2,187,480

 

$

1,884,167

 

$

1,493,886

 

$

1,483,950

 

$

1,263,881

 

Total deposits

 

826,230

 

712,041

 

591,828

 

561,513

 

473,614

 

Long-term debt

 

427,112

 

288,494

 

217,499

 

207,910

 

162,702

 

Mandatorily redeemable securities of subsidiary trusts (3)

 

23,594

 

9,579

 

6,264

 

6,209

 

6,057

 

Common stockholders’ equity

 

113,447

 

118,632

 

111,261

 

108,015

 

96,738

 

Total stockholders’ equity

 

113,447

 

119,632

 

112,386

 

109,140

 

97,863

 

Ratios:

 

 

 

 

 

 

 

 

 

 

 

Return on common stockholders’ equity (4)

 

2.9

%

18.8

%

22.4

%

17.0

%

19.8

%

Return on total stockholders’ equity (4)

 

3.0

 

18.7

 

22.2

 

16.9

 

19.6

 

Tier 1 Capital

 

7.12

%

8.59

 

8.79

 

8.74

 

8.91

 

Total Capital

 

10.70

 

11.65

 

12.02

 

11.85

 

12.04

 

Leverage (5)

 

4.03

 

5.16

 

5.35

 

5.20

 

5.56

 

Common stockholders’ equity to assets

 

5.19

%

6.30

%

7.45

%

7.28

%

7.65

%

Total stockholders’ equity to assets

 

5.19

 

6.35

 

7.52

 

7.35

 

7.74

 

Dividend payout ratio (6)

 

300.0

 

45.5

 

37.1

 

49.1

 

32.2

 

Book value per common share

 

$

22.71

 

$

24.15

 

$

22.34

 

$

20.79

 

$

18.76

 

Ratio of earnings to fixed charges and preferred stock dividends

 

1.01

x

1.50

x

1.79

x

1.99

x

2.44

x

 

(1)           Discontinued operations for 2003 to 2007 reflect the sale of Citigroup’s German Retail Banking Operations to Credit Mutuel, and the Company’s sale of CitiCapital’s equipment finance unit to General Electric. In addition, discontinued operations for 2003 to 2006 include the operations and associated gain on sale of substantially all of Citigroup’s Asset Management business. The majority of the sale closed on December 1, 2005. Discontinued operations from 2003 to 2006 also include the operations and associated gain on sale of Citigroup’s Travelers Life & Annuity, substantially all of Citigroup’s international insurance business and Citigroup’s Argentine pension business to MetLife Inc. The sale closed on July 1, 2005. See Note 3 to Exhibit 99.02.

(2)           Accounting change of $(49) million in 2005 represents the adoption of Financial Accounting Standards Board (FASB) Interpretation No. 47, “Accounting for Conditional Asset Retirement Obligations, an interpretation of SFAS No. 143, (FIN 47).”

(3)           During 2004, the Company deconsolidated the subsidiary issuer trusts in accordance with FIN 46-R. For regulatory capital purposes, these trust securities remain a component of Tier 1 Capital.

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

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

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

 

2


 

SEGMENT AND REGIONAL — NET INCOME (LOSS) AND REVENUE

 

The following tables present net income (loss) and revenues for Citigroup’s businesses on a segment view and on a regional view:

 

Citigroup Net Income (Loss) — Segment View

 

In millions of dollars

 

2007

 

2006

 

2005

 

% Change
2007 vs. 2006

 

% Change
2006 vs. 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

2,713

 

$

3,887

 

$

2,721

 

(30

)%

43

%

EMEA

 

232

 

121

 

162

 

92

 

(25

)

Latin America

 

1,233

 

652

 

672

 

89

 

(3

)

Asia

 

496

 

318

 

510

 

56

 

(38

)

Total Global Cards

 

$

4,674

 

$

4,978

 

$

4,065

 

(6

)%

22

%

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Banking

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

780

 

$

4,002

 

$

3,642

 

(81

)%

10

%

EMEA

 

(122

)

5

 

63

 

NM

 

(92

)

Latin America

 

660

 

1,003

 

796

 

(34

)

26

 

Asia

 

839

 

1,063

 

1,484

 

(21

)

(28

)

Total Consumer Banking

 

$

2,157

 

$

6,073

 

$

5,985

 

(64

)%

1

%

 

 

 

 

 

 

 

 

 

 

 

 

Institutional Clients Group (ICG)

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

(6,733

)

$

3,533

 

$

4,446

 

NM

 

(21

)%

EMEA

 

(1,900

)

2,010

 

1,140

 

NM

 

76

 

Latin America

 

1,630

 

1,112

 

1,260

 

47

%

(12

)

Asia

 

2,848

 

1,956

 

1,749

 

46

 

12

 

Total ICG

 

$

(4,155

)

$

8,611

 

$

8,595

 

NM

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Wealth Management (GWM)

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

1,415

 

$

1,209

 

$

1,142

 

17

%

6

%

EMEA

 

77

 

23

 

8

 

NM

 

NM

 

Latin America

 

72

 

48

 

61

 

50

 

(21

)

Asia

 

410

 

163

 

33

 

NM

 

NM

 

Total GWM

 

$

1,974

 

$

1,443

 

$

1,244

 

37

%

16

%

 

 

 

 

 

 

 

 

 

 

 

 

Corporate/Other

 

$

(1,661

)

$

(654

)

$

(668

)

NM

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

Income from Continuing Operations

 

$

2,989

 

$

20,451

 

$

19,221

 

(85

)%

6

%

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

628

 

1,087

 

5,417

 

(42

)

(80

)

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative Effect of Accounting Change

 

—

 

—

 

(49

)

—

 

100

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

3,617

 

$

21,538

 

$

24,589

 

(83

)%

(12

)%

 

NM Not meaningful

 

3


 

Citigroup Net Income (Loss) — Regional View

 

In millions of dollars

 

2007

 

2006

 

2005

 

% Change
2007 vs. 2006

 

% Change
2006 vs. 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

$

2,713

 

$

3,887

 

2,721

 

(30

)%

43

%

Consumer Banking

 

780

 

4,002

 

3,642

 

(81

)

10

 

ICG

 

(6,733

)

3,533

 

4,446

 

NM

 

(21

)

Securities & Banking

 

(6,929

)

3,434

 

4,342

 

NM

 

(21

)

Transaction Services

 

196

 

99

 

104

 

98

 

(5

)

GWM

 

1,415

 

1,209

 

1,142

 

17

 

6

 

Total North America

 

$

(1,825

)

$

12,631

 

11,951

 

NM

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

$

232

 

$

121

 

$

162

 

92

%

(25

)%

Consumer Banking

 

(122

)

5

 

63

 

NM

 

(92

)

ICG

 

(1,900

)

2,010

 

1,140

 

NM

 

76

 

Securities & Banking

 

(2,573

)

1,547

 

817

 

NM

 

89

 

Transaction Services

 

673

 

463

 

323

 

45

 

43

 

GWM

 

77

 

23

 

8

 

NM

 

NM

 

Total EMEA

 

$

(1,713

)

$

2,159

 

$

1,373

 

NM

 

57

%

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

$

1,233

 

$

652

 

$

672

 

89

%

(3

)%

Consumer Banking

 

660

 

1,003

 

796

 

(34

)

26

 

ICG

 

1,630

 

1,112

 

1,260

 

47

 

(12

)

Securities & Banking

 

1,221

 

854

 

1,033

 

43

 

(17

)

Transaction Services

 

409

 

258

 

227

 

59

 

14

 

GWM

 

72

 

48

 

61

 

50

 

(21

)

Total Latin America

 

$

3,595

 

$

2,815

 

$

2,789

 

28

%

1

%

 

 

 

 

 

 

 

 

 

 

 

 

Asia

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

$

496

 

$

318

 

$

510

 

56

%

(38

)%

Consumer Banking

 

839

 

1,063

 

1,484

 

(21

)

(28

)

ICG

 

2,848

 

1,956

 

1,749

 

46

 

12

 

Securities & Banking

 

1,904

 

1,345

 

1,255

 

42

 

7

 

Transaction Services

 

944

 

611

 

494

 

55

 

24

 

GWM

 

410

 

163

 

33

 

NM

 

NM

 

Total Asia

 

$

4,593

 

$

3,500

 

$

3,776

 

31

%

(7

)%

 

 

 

 

 

 

 

 

 

 

 

 

Corporate/Other

 

(1,661

)

(654

)

(668

)

NM

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Continuing Operations

 

$

2,989

 

$

20,451

 

$

19,221

 

(85

)%

6

%

 

 

 

 

 

 

 

 

 

 

 

 

Income from Discontinued Operations

 

628

 

1,087

 

5,417

 

(42

)

(80

)

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative Effect of Accounting Change

 

—

 

—

 

(49

)

—

 

100

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

3,617

 

$

21,538

 

$

24,589

 

(83

)%

(13

)%

 

NM Not meaningful

 

4


 

Citigroup Revenues — Segment View

 

In millions of dollars

 

2007

 

2006

 

2005

 

% Change
2007 vs. 2006

 

% Change
2006 vs. 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

13,893

 

$

13,905

 

$

13,186

 

—

 

5

%

EMEA

 

1,955

 

1,205

 

1,185

 

62

%

2

 

Latin America

 

4,803

 

2,726

 

1,632

 

76

 

67

 

Asia

 

2,400

 

1,976

 

1,989

 

21

 

(1

)

Total Global Cards

 

$

23,051

 

$

19,812

 

$

17,992

 

16

%

10

%

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Banking

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

16,991

 

$

15,526

 

$

15,225

 

9

%

2

%

EMEA

 

2,485

 

2,059

 

1,950

 

21

 

6

 

Latin America

 

4,185

 

3,740

 

3,234

 

12

 

16

 

Asia

 

5,797

 

5,310

 

5,654

 

9

 

(6

)

Total Consumer Banking

 

$

29,458

 

$

26,635

 

$

26,063

 

11

%

2

%

 

 

 

 

 

 

 

 

 

 

 

 

Institutional Clients Group

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

(3,040

)

$

13,032

 

$

13,320

 

NM

 

(2

)%

EMEA

 

4,235

 

8,758

 

6,849

 

(52

)%

28

 

Latin America

 

4,206

 

3,091

 

2,829

 

36

 

9

 

Asia

 

8,339

 

5,766

 

4,922

 

45

 

17

 

Total ICG

 

$

13,740

 

$

30,647

 

$

27,920

 

(55

)%

10

%

 

 

 

 

 

 

 

 

 

 

 

 

Global Wealth Management

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

9,790

 

$

8,790

 

$

7,628

 

11

%

15

%

EMEA

 

543

 

331

 

294

 

64

 

13

 

Latin America

 

373

 

318

 

327

 

17

 

(3

)

Asia

 

2,292

 

738

 

434

 

NM

 

70

 

Total GWM

 

$

12,998

 

$

10,177

 

$

8,683

 

28

%

17

%

 

 

 

 

 

 

 

 

 

 

 

 

Corporate/Other

 

$

(752

)

$

(944

)

$

(581

)

20

%

(62

)%

 

 

 

 

 

 

 

 

 

 

 

 

Total Net Revenues

 

$

78,495

 

$

86,327

 

$

80,077

 

(9

)%

8

%

 

NM Not meaningful

 

5


 

Citigroup Revenues — Regional View

 

In millions of dollars

 

2007

 

2006

 

2005

 

% Change
2007 vs. 2006

 

% Change
2006 vs. 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

$

13,893

 

$

13,905

 

$

13,186

 

—

 

5

%

Consumer Banking

 

16,991

 

15,526

 

15,225

 

9

%

2

 

ICG

 

(3,040

)

13,032

 

13,320

 

NM

 

(2

)

Securities & Banking

 

(4,663

)

11,742

 

12,259

 

NM

 

(4

)

Transaction Services

 

1,623

 

1,290

 

1,061

 

26

 

22

 

GWM

 

9,790

 

8,790

 

7,628

 

11

 

15

 

Total North America

 

$

37,634

 

$

51,253

 

$

49,359

 

(27

)%

4

%

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

$

1,955

 

$

1,205

 

$

1,185

 

62

%

2

%

Consumer Banking

 

2,485

 

2,059

 

1,950

 

21

 

6

 

ICG

 

4,235

 

8,758

 

6,849

 

(52

)

28

 

Securities & Banking

 

1,454

 

6,611

 

5,093

 

(78

)

30

 

Transaction Services

 

2,781

 

2,147

 

1,756

 

30

 

22

 

GWM

 

543

 

331

 

294

 

64

 

13

 

Total EMEA

 

$

9,218

 

$

12,353

 

$

10,278

 

(25

)%

20

%

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

$

4,803

 

$

2,726

 

$

1,632

 

76

%

67

%

Consumer Banking

 

4,185

 

3,740

 

3,234

 

12

 

16

 

ICG

 

4,206

 

3,091

 

2,829

 

36

 

9

 

Securities & Banking

 

3,078

 

2,251

 

2,119

 

37

 

6

 

Transaction Services

 

1,128

 

840

 

710

 

34

 

18

 

GWM

 

373

 

318

 

327

 

17

 

(3

)

Total Latin America

 

$

13,567

 

$

9,875

 

$

8,022

 

37

%

23

%

 

 

 

 

 

 

 

 

 

 

 

 

Asia

 

 

 

 

 

 

 

 

 

 

 

Global Cards

 

$

2,400

 

$

1,976

 

$

1,989

 

21

%

(1

)%

Consumer Banking

 

5,797

 

5,310

 

5,654

 

9

 

(6

)

ICG

 

8,339

 

5,766

 

4,922

 

45

 

17

 

Securities & Banking

 

6,006

 

4,047

 

3,535

 

48

 

14

 

Transaction Services

 

2,333

 

1,719

 

1,387

 

36

 

24

 

GWM

 

2,292

 

738

 

434

 

NM

 

70

 

Total Asia

 

$

18,828

 

$

13,790

 

$

12,999

 

37

%

6

%

 

 

 

 

 

 

 

 

 

 

 

 

Corporate/Other

 

$

(752

)

$

(944

)

$

(581

)

20

%

(62

)%

 

 

 

 

 

 

 

 

 

 

 

 

Total Net Revenue

 

$

78,495

 

$

86,327

 

$

80,077

 

(9

)%

8

%

 

NM Not meaningful

 

6