0001104659-12-069023.txt : 20121015 0001104659-12-069023.hdr.sgml : 20121015 20121015081638 ACCESSION NUMBER: 0001104659-12-069023 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 51 CONFORMED PERIOD OF REPORT: 20121015 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20121015 DATE AS OF CHANGE: 20121015 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CITIGROUP INC CENTRAL INDEX KEY: 0000831001 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 521568099 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09924 FILM NUMBER: 121142809 BUSINESS ADDRESS: STREET 1: 399 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10043 BUSINESS PHONE: 2125591000 MAIL ADDRESS: STREET 1: 399 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10043 FORMER COMPANY: FORMER CONFORMED NAME: TRAVELERS GROUP INC DATE OF NAME CHANGE: 19950519 FORMER COMPANY: FORMER CONFORMED NAME: TRAVELERS INC DATE OF NAME CHANGE: 19940103 FORMER COMPANY: FORMER CONFORMED NAME: PRIMERICA CORP /NEW/ DATE OF NAME CHANGE: 19920703 8-K 1 a12-24020_18k.htm 8-K

 

 

U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 


 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported) October 15, 2012

 

Citigroup Inc.

(Exact name of Registrant as specified in its charter)

 

Delaware

 

1-9924

 

52-1568099

(State or other jurisdiction
of incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

 

399 Park Avenue, New York,
New York

(Address of principal executive offices)

 

10022
(Zip Code)

 

(212) 559-1000

(Registrant’s telephone number,
including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

CITIGROUP INC.

Current Report on Form 8-K

 

Item 2.02  Results of Operations and Financial Condition.

 

On October 15, 2012, Citigroup Inc. announced its results of operations for the quarter ended September 30, 2012.  A copy of the related press release, filed as Exhibit 99.1 to this Form 8-K, is incorporated herein by reference in its entirety and shall be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended.

 

In addition, a copy of the Citigroup Inc. Quarterly Financial Data Supplement for the quarter ended September 30, 2012 is being furnished as Exhibit 99.2 to this Form 8-K and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

 

Item 9.01  Financial Statements and Exhibits.

 

(d)  Exhibits.

 

Exhibit Number

 

 

99.1

 

Press Release, dated October 15, 2012, issued by Citigroup Inc.

 

 

 

99.2

 

Citigroup Inc. Quarterly Financial Data Supplement for the quarter ended September 30, 2012.

 

2



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

CITIGROUP INC.

 

 

 

Dated: October 15, 2012

 

 

 

By:

/s/ JEFFREY R. WALSH

 

 

Name: Jeffrey R. Walsh

 

 

Title: Controller and Chief Accounting Officer

 

3



 

EXHIBIT INDEX

 

Exhibit Number

 

 

99.1

 

Press Release, dated October 15, 2012, issued by Citigroup Inc.

 

 

 

99.2

 

Citigroup Inc. Quarterly Financial Data Supplement for the quarter ended September 30, 2012.

 

4


EX-99.1 2 a12-24020_1ex99d1.htm EX-99.1

Exhibit 99.1

 

For Immediate Release
Citigroup Inc. (NYSE: C)
October 15, 2012

GRAPHIC

 

CITIGROUP REPORTS THIRD QUARTER 2012 EARNINGS PER SHARE OF $0.15;

$1.06 EXCLUDING CVA/DVA(1), LOSS ON MSSB(2) AND TAX BENEFIT(3)

 

CITIGROUP NET INCOME OF $468 MILLION;

$3.3 BILLION EXCLUDING CVA/DVA, LOSS ON MSSB AND TAX BENEFIT

 

CITIGROUP REVENUES OF $14.0 BILLION;
$19.4 BILLION EXCLUDING CVA/DVA AND LOSS ON MSSB

 

CITICORP NET INCOME OF $4.6 BILLION EXCLUDING CVA/DVA

 

BASEL I TIER 1 COMMON RATIO OF 12.7%

ESTIMATED BASEL III TIER 1 COMMON RATIO INCREASED TO 8.6%(4)

 

BOOK VALUE PER SHARE INCREASED TO $63.59

TANGIBLE BOOK VALUE PER SHARE(5) INCREASED TO $52.70

 

CITIGROUP DEPOSITS OF $945 BILLION GREW 11% VERSUS PRIOR YEAR PERIOD

 

CITIGROUP LOANS OF $658 BILLION GREW 3% VERSUS PRIOR YEAR PERIOD

 

CITICORP LOANS OF $537 BILLION GREW 11% VERSUS PRIOR YEAR PERIOD

 

CITI HOLDINGS ASSETS OF $171 BILLION DECLINED 31% FROM PRIOR YEAR PERIOD
AND REPRESENTED 9% OF TOTAL CITIGROUP ASSETS

 

New York, October 15, 2012 — Citigroup Inc. today reported net income for the third quarter 2012 of $468 million, or $0.15 per diluted share, on revenues of $14.0 billion.

 

CVA/DVA was a negative $776 million in the third quarter, resulting from the improvement in Citi’s credit spreads, compared to a positive $1.9 billion in the prior year period.  Third quarter results also included a pre-tax loss of $4.7 billion ($2.9 billion after-tax) from the previously announced sale of a 14% interest and other-than-temporary impairment of the carrying value of Citi’s remaining 35% interest in the Morgan Stanley Smith Barney (MSSB) joint venture.  In addition, third quarter results included a $582 million tax benefit related to the resolution of certain tax audit items.  Excluding CVA/DVA and the loss on MSSB, third quarter revenues were $19.4 billion, up 3% from the prior period.  Excluding CVA/DVA, the loss on MSSB and the tax benefit, earnings were $1.06 per diluted share, up 26% from the prior year period.

 

Vikram Pandit, Citi’s Chief Executive Officer, said, “Our core businesses showed momentum during the quarter as we increased lending and generated higher operating revenues. These earnings highlight the strength of Citicorp and its diversification by product and region.  For the third straight quarter, we had positive operating leverage in each of our three core businesses. Citigroup in total also had positive operating leverage as Citi Holdings had a smaller impact on our overall results.

 

“Last month’s price agreement on MSSB has given us more certainty on our exit from that business and added to the reduction of Citi Holdings, which is now only 9% of our balance sheet.

 

“We generated additional capital during the quarter and our Tier 1 Common Ratio was estimated at 8.6% on a Basel III basis at the end of the period.  We are managing risk very carefully given global economic conditions so we can continue to grow our businesses safely and soundly,” concluded Mr. Pandit.

 

1



 

Citigroup revenues of $19.4 billion, excluding CVA/DVA and the loss on MSSB, were 3% above the prior year period, driven by 5% growth in Citicorp revenues, offset by a 10% decline in Citi Holdings revenues primarily resulting from the ongoing wind down of those assets.  Citi Holdings revenues represented 5% of total Citigroup revenues, excluding CVA/DVA and the loss on MSSB.

 

Citicorp revenues of $17.6 billion in the third quarter 2012 included $(799) million of CVA/DVA reported within Securities and Banking.  Excluding CVA/DVA, Citicorp revenues were $18.4 billion, 5% above the prior year period with 15% growth in Securities and Banking revenues and 2% growth in Global Consumer Banking (GCB) revenues, partially offset by a 2% decline in Transaction Services revenues.

 

Citi Holdings revenues of $(3.7) billion in the third quarter 2012 included $23 million of CVA/DVA and the $4.7 billion pre-tax loss on MSSB. Excluding CVA/DVA and the loss on MSSB, Citi Holdings revenues were $971 million compared to $1.1 billion in the prior year period.  Lower revenues in Local Consumer Lending and in Brokerage and Asset Management drove the decline in Citi Holdings revenues from the prior year period, partially offset by an increase in Special Asset Pool revenues.  The decline in Local Consumer Lending revenues reflected the ongoing decline in assets while the decline in Brokerage and Asset Management reflected a lower equity contribution from MSSB and lower private equity marks.  The Special Asset Pool revenues grew versus the prior year period due to lower funding costs as well as an improvement in asset marks.  Total Citi Holdings assets of $171 billion declined $76billion, or 31%, from the third quarter 2011.  Citi Holdings assets at the end of the third quarter 2012 represented approximately 9% of total Citigroup assets.

 

Citigroup’s net income declined to $468 million in the third quarter 2012 from $3.8 billion in the prior year period.  Excluding the impact of CVA/DVA, the loss on MSSB and the tax benefit in the third quarter 2012, Citigroup net income was $3.3 billion, 27% higher than the third quarter 2011.  Operating expenses of $12.2 billion were 2% lower than the prior year period.  Citigroup’s cost of credit in the third quarter 2012 was $2.7 billion, 20% below the prior year period, reflecting a $0.5 billion improvement in net credit losses and an $87million increase in net loan loss reserve releases. Citigroup’s net credit losses in the third quarter 2012 included approximately $635 million of incremental mortgage charge-offs in Citi Holdings required by new OCC guidance regarding the treatment of mortgage loans where the borrower has gone through Chapter 7 bankruptcy.  The vast majority of the charge-offs were related to loans which were current.  The incremental $635 million of charge-offs was substantially offset by a related reserve release of approximately $600 million, and thus did not have a significant impact on reported net earnings.  Citigroup’s provision for income taxes was a benefit of $1.5 billion in the third quarter 2012 (including the $582 million tax benefit), compared to an expense of $1.3 billion in the prior year period.

 

Citigroup’s allowance for loan losses was $25.9 billion at quarter end, or 4.0% of total loans, compared to $32.1 billion, or 5.1%, in the prior year period.  The $1.5 billion net release of loan loss reserves in the quarter increased 6% versus the prior year period.  Reserve releases in Citicorp of $696 million were 22% lower than the third quarter 2011, predominantly reflecting lower releases in North America GCB partially offset by a net reserve release in Securities and Banking.  Reserve releases in Citi Holdings of $813million were 52% higher than the prior year period, primarily reflecting approximately $600 million of reserve releases in Local Consumer Lending specifically related to the incremental charge-offs resulting from the OCC guidance mentioned above, partially offset by lower loan loss reserve releases in the Special Asset Pool.  Citigroup asset quality continued to improve as total non-accrual assets fell 5% to $12.7 billion compared to the third quarter 2011.  Corporate non-accrual loans fell 42% to $2.4 billion, while consumer non-accrual loans grew 25% to $9.8 billion, predominantly reflecting the new OCC guidance mentioned above which added $1.5 billion to consumer non-accrual loans.  Consumer loans that were 90+ days delinquent, excluding the Special Asset Pool, fell 13% versus the prior year period to $8.0 billion, or 2.0% of consumer loans.

 

Citigroup’s capital levels and book value continued to increase versus the prior year period.  At the end of the third quarter 2012, book value per share was $63.59 and tangible book value per share was $52.70, 5% and 6%

 

2



 

increases respectively versus the prior year period end.  Citigroup’s Tier 1 Capital Ratio was 13.9%, its Basel I Tier 1 Common Ratio was 12.7%, and its Basel III Tier 1 Common Ratio was estimated at 8.6%.

 

CITIGROUP

 

($ millions, except per share amounts)

 

3Q’12

 

2Q’12

 

3Q’11

 

QoQ%

 

YoY%

 

 

 

 

 

 

 

 

 

 

 

 

 

Citicorp

 

17,608

 

17,983

 

19,404

 

-2

%

-9

%

Citi Holdings

 

(3,690

)

924

 

1,127

 

NM

 

NM

 

Corporate/Other

 

33

 

(265

)

300

 

NM

 

-89

%

Total Revenues

 

$

13,951

 

$

18,642

 

$

20,831

 

-25

%

-33

%

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenues (Ex-CVA/DVA & Loss on Minority Interest) (a)

 

$

19,411

 

$

18,847

 

$

18,893

 

3

%

3

%

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

$

12,220

 

$

12,134

 

$

12,460

 

1

%

-2

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

3,979

 

3,576

 

4,514

 

11

%

-12

%

Loan Loss Reserve Build/(Release) (b)

 

(1,509

)

(984

)

(1,422

)

-53

%

-6

%

Provision for Benefits and Claims

 

225

 

214

 

259

 

5

%

-13

%

Total Cost of Credit

 

$

2,695

 

$

2,806

 

$

3,351

 

-4

%

-20

%

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) from Cont. Ops. Before Taxes

 

$

(964

)

$

3,702

 

$

5,020

 

NM

 

NM

 

Provision for Income Taxes

 

(1,488

)

715

 

1,278

 

NM

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Continuing Operations

 

$

524

 

$

2,987

 

$

3,742

 

-82

%

-86

%

Net income (loss) from Disc. Ops.

 

(31

)

(1

)

1

 

NM

 

NM

 

Non-Controlling Interest

 

25

 

40

 

(28

)

-38

%

NM

 

Citigroup Net Income

 

$

468

 

$

2,946

 

$

3,771

 

-84

%

-88

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Ex-CVA/DVA, Minority Interest & Tax Benefit) (c)

 

$

3,268

 

$

3,080

 

$

2,568

 

6

%

27

%

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Common Ratio

 

12.7

%

12.7

%

11.7

%

 

 

 

 

Tier 1 Capital Ratio

 

13.9

%

14.5

%

13.5

%

 

 

 

 

Return on Common Equity

 

1.0

%

6.5

%

8.4

%

 

 

 

 

Book Value per Share

 

$

63.59

 

$

62.61

 

$

60.56

 

 

 

 

 

Tangible Book Value per Share

 

$

52.70

 

$

51.81

 

$

49.50

 

 

 

 

 

 


(a) Please refer to Footnotes 1 and 2 and Appendices A and B.

(b) Includes provision for unfunded lending commitments.

(c) Please refer to Footnotes 1, 2, 3, and 6 and Appendices A and B.

 

3



 

CITICORP

 

(in millions of dollars)

 

3Q’12

 

2Q’12

 

3Q’11

 

QoQ%

 

YoY%

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Consumer Banking

 

10,180

 

9,771

 

9,963

 

4

%

2

%

Securities and Banking

 

4,770

 

5,405

 

6,725

 

-12

%

-29

%

Transaction Services

 

2,658

 

2,807

 

2,716

 

-5

%

-2

%

Total Revenues

 

$

17,608

 

$

17,983

 

$

19,404

 

-2

%

-9

%

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenues (Ex-CVA/DVA) (a)

 

$

18,407

 

$

17,785

 

$

17,516

 

3

%

5

%

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

$

10,266

 

$

10,300

 

$

10,427

 

 

-2

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

2,173

 

2,246

 

2,632

 

-3

%

-17

%

Loan Loss Reserve Build/(Release) (b)

 

(696

)

(715

)

(887

)

3

%

22

%

Provision for Benefits and Claims

 

65

 

50

 

56

 

30

%

16

%

Total Cost of Credit

 

$

1,542

 

$

1,581

 

$

1,801

 

-2

%

-14

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

4,124

 

$

4,303

 

$

5,031

 

-4

%

-18

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Ex-CVA/DVA) (c)

 

$

4,623

 

$

4,176

 

$

3,859

 

11

%

20

%

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

North America

 

7,464

 

7,726

 

8,165

 

-3

%

-9

%

EMEA

 

2,759

 

2,905

 

3,571

 

-5

%

-23

%

LATAM

 

3,668

 

3,534

 

3,382

 

4

%

8

%

Asia

 

3,717

 

3,818

 

4,286

 

-3

%

-13

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

North America

 

1,659

 

1,798

 

1,906

 

-8

%

-13

%

EMEA

 

616

 

692

 

1,008

 

-11

%

-39

%

LATAM

 

925

 

842

 

714

 

10

%

30

%

Asia

 

924

 

971

 

1,403

 

-5

%

-34

%

 

 

 

 

 

 

 

 

 

 

 

 

EOP Assets ($B)

 

1,458

 

1,436

 

1,406

 

2

%

4

%

EOP Loans ($B)

 

537

 

527

 

483

 

2

%

11

%

EOP Deposits ($B)

 

875

 

845

 

779

 

4

%

12

%

 


(a) Please refer to Footnote 1 and Appendix A.

 

(b) Includes provision for unfunded lending commitments.

 

(c) Please refer to Footnotes 1 and 6 and Appendix A.

 

Citicorp

 

Citicorp revenues of $17.6 billion in the third quarter 2012 declined by 9% from the prior year period.  CVA/DVA, reported within Securities and Banking, in the third quarter was $(799) million, compared to $1.9 billion in the prior year period.  Excluding CVA/DVA, revenues were $18.4 billion, up 5% from the third quarter 2011 driven by 15% growth in Securities and Banking revenues to $5.6 billion and 2% growth in Global Consumer Banking (GCB) revenues to $10.2 billion, partially offset by a 2% decline in Transaction Services revenues to $2.7 billion, all from the prior year period.

 

Citicorp net income decreased 18% from the prior year period to $4.1 billion, predominantly reflecting the impact of CVA/DVA.  Excluding CVA/DVA, net income grew 20% from the prior year period to $4.6 billion, largely reflecting continued positive operating leverage, as revenues grew 5% and operating expenses declined 2%, as well as a 14% decline in total credit costs.

 

4



 

Citicorp cost of credit in the third quarter 2012 decreased 14% from the prior year period to $1.5 billion.  The decrease largely reflected lower net credit losses, which declined $459 million, or 17%, to $2.2 billion, partially offset by a $191 million, or 22%, reduction in loan loss reserve releases to $696 million, both compared to the third quarter 2011.  The decline in reserve releases was largely in North America GCB.  Citicorp’s consumer loans 90+ days delinquent fell 11% from the prior year period to $3.0 billion, and the 90+ days delinquency ratio fell 20 basis points to 1.05% of loans.

 

Citicorp operating expenses decreased 2% year-over-year to $10.3 billion, reflecting ongoing expense control and reengineering initiatives.

 

Citicorp end of period loans grew 11% versus the prior year period to $537 billion, primarily reflecting strong growth in corporate loans and growth in Latin America and Asia consumer loans.  Consumer loans grew 5% to $289 billion and corporate loans grew 19% to $248billion, both versus the prior year period.

 

Global Consumer Banking

 

(in millions of dollars)

 

3Q’12

 

2Q’12

 

3Q’11

 

QoQ%

 

YoY%

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

5,402

 

5,135

 

5,100

 

5

%

6

%

EMEA

 

381

 

366

 

379

 

4

%

1

%

LATAM

 

2,419

 

2,322

 

2,417

 

4

%

 

Asia

 

1,978

 

1,948

 

2,067

 

2

%

-4

%

Total Revenues

 

$

10,180

 

$

9,771

 

$

9,963

 

4

%

2

%

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

$

5,389

 

$

5,313

 

$

5,382

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

2,030

 

2,124

 

2,545

 

-4

%

-20

%

Loan Loss Reserve Build/(Release) (a)

 

(521

)

(728

)

(964

)

28

%

46

%

Provision for Benefits and Claims

 

65

 

50

 

56

 

30

%

16

%

Total Cost of Credit

 

$

1,574

 

$

1,446

 

$

1,637

 

9

%

-4

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

2,161

 

$

1,991

 

$

2,012

 

9

%

7

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

North America

 

1,299

 

1,196

 

1,103

 

9

%

18

%

EMEA

 

8

 

16

 

8

 

-50

%

 

LATAM

 

405

 

331

 

339

 

22

%

19

%

Asia

 

449

 

448

 

562

 

 

-20

%

 

 

 

 

 

 

 

 

 

 

 

 

(in billions of dollars)

 

 

 

 

 

 

 

 

 

 

 

Avg. Cards Loans

 

145

 

144

 

149

 

 

-3

%

Avg. Retail Banking Loans

 

141

 

139

 

129

 

2

%

9

%

Avg. Deposits

 

324

 

318

 

315

 

2

%

3

%

Investment Sales

 

24

 

19

 

20

 

21

%

19

%

Cards Purchase Sales

 

90

 

91

 

90

 

-1

%

 

 


(a) Includes provision for unfunded lending commitments.

 

Global Consumer Banking

 

GCB revenues of $10.2 billion rose 2% from the prior year period, reflecting volume growth across most businesses, partially offset by ongoing spread compression.  Revenues also benefited from higher U.S. mortgage revenues.  Revenue growth of 6% in North America GCB to $5.4 billion was partially offset by international GCB revenues, which declined 2% to $4.8 billion.  The decline in international GCB revenues largely reflected the impact of foreign exchange translation into U.S. dollars for reporting purposes (FX), as the U.S. dollar generally strengthened versus local currencies(7).  On a constant dollar basis (i.e. excluding the impact of FX) GCB revenues rose 4%.

 

5



 

GCB net income grew 7% versus the prior year period (9% on a constant dollar basis) to $2.2 billion, reflecting the growth in revenues and lower net credit losses, partially offset by lower loan loss reserve releases. Expenses of $5.4 billion were essentially flat (up 3% on a constant dollar basis) versus the prior year period as the impact of volume growth was reduced by efficiency savings.

 

North America GCB revenues grew 6% to $5.4 billion driven by higher retail banking revenues that were partially offset by lower revenues from the cards businesses (Citi-branded cards and Citi retail services).  Retail banking revenues grew 35% to $1.7 billion from the third quarter 2011, primarily reflecting higher mortgage revenues.  Citi-branded cards revenues declined 4% to $2.1 billion, and Citi retail services revenues declined 4% to $1.6 billion reflecting lower average loan balances as Citi-branded cards loans declined 3% and Citi retail services loans declined 4% versus the prior year period.

 

North America GCB net income was $1.3 billion, 18% higher than the third quarter 2011.  The growth in net income was largely driven by higher revenues and a $503 million decrease in net credit losses that were partially offset by a $438 million reduction in loan loss reserve releases versus the prior year period.  Operating expenses in the third quarter grew 2% from the prior year period to $2.5 billion largely due to higher retail channel mortgage volumes.

 

North America GCB credit quality continued to improve as net credit losses fell $503 million, or 27%, to $1.4 billion compared to the prior year period.  Net credit losses versus the prior year period improved in Citi-branded cards (down 32% to $745 million) and Citi retail services (down 23% to $534 million), while net credit losses in retail banking were up 11% to $72 million.  Delinquency rates continued to improve in both Citi-branded cards and Citi retail services versus the prior year period.  Retail banking delinquency rates increased modestly versus the prior year period largely reflecting the impact of portfolio growth and seasoning, but nonetheless remained at historically low levels.  The reserve release in the third quarter 2012 was $518 million, $438 million lower than in the third quarter 2011.

 

International GCB revenues declined 2% to $4.8 billion versus the third quarter 2011, largely reflecting the impact of FX.  Compared to the prior year period, revenues were essentially flat in Latin America at $2.4 billion, declined 4% in Asia to $2.0 billion, and rose 1% in EMEA to $381 million.  On a constant dollar basis, international GCB revenues rose 3% versus the prior year period, with 7% growth in Latin America, a 2% decline in Asia and 7% growth in EMEA.  All three regions had year-over-year growth in average loans and average deposits during the third quarter 2012 on a constant dollar basis.

 

International GCB net income fell 5% from the prior year period to $862 million, and declined by 3% on a constant dollar basis. Operating expenses in the third quarter 2012 declined 2% (increased 3% on a constant dollar basis) to $2.9 billion while total credit costs were essentially flat (increased 8% on a constant dollar basis) at $722 million.

 

International GCB credit quality was broadly stable even as loan portfolios continue to grow. Net credit losses fell 2% to $679 million on a reported basis, but rose 6% on a constant dollar basis, reflecting portfolio growth in Latin America.

 

6


 


 

Securities and Banking

 

(in millions of dollars)

 

3Q’12

 

2Q’12

 

3Q’11

 

QoQ%

 

YoY%

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Banking

 

926

 

854

 

736

 

8

%

26

%

Equity Markets

 

510

 

550

 

290

 

-7

%

76

%

Fixed Income Markets

 

3,697

 

2,818

 

2,270

 

31

%

63

%

Lending

 

194

 

608

 

1,032

 

-68

%

-81

%

Private Bank

 

590

 

570

 

546

 

4

%

8

%

Other Securities and Banking

 

(348

)

(193

)

(37

)

-80

%

NM

 

Total Revenues (Ex-CVA/DVA) (a)

 

$

5,569

 

$

5,207

 

$

4,837

 

7

%

15

%

 

 

 

 

 

 

 

 

 

 

 

 

CVA/DVA

 

(799

)

198

 

1,888

 

NM

 

NM

 

Total Revenues

 

$

4,770

 

$

5,405

 

$

6,725

 

-12

%

-29

%

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

$

3,486

 

$

3,575

 

$

3,578

 

-2

%

-3

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

56

 

97

 

70

 

-42

%

-20

%

Credit Reserve Build/(Release) (b)

 

(129

)

(38

)

104

 

NM

 

NM

 

Total Cost of Credit

 

$

(73

)

$

59

 

$

174

 

NM

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

1,120

 

$

1,402

 

$

2,142

 

-20

%

-48

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Ex-CVA/DVA) (c)

 

$

1,619

 

$

1,275

 

$

970

 

27

%

67

%

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

North America

 

1,439

 

1,926

 

2,445

 

-25

%

-41

%

EMEA

 

1,511

 

1,609

 

2,299

 

-6

%

-34

%

LATAM

 

802

 

757

 

521

 

6

%

54

%

Asia

 

1,018

 

1,113

 

1,460

 

-9

%

-30

%

 

 

 

 

 

 

 

 

 

 

 

 

Income from Continuing Ops.

 

 

 

 

 

 

 

 

 

 

 

North America

 

232

 

488

 

674

 

-52

%

-66

%

EMEA

 

346

 

365

 

735

 

-5

%

-53

%

LATAM

 

363

 

325

 

207

 

12

%

75

%

Asia

 

190

 

250

 

526

 

-24

%

-64

%

 


(a) Please refer to Footnote 1 and Appendix A.

(b) Includes provision for unfunded lending commitments.

(c) Please refer to Footnotes 1 and 6 and Appendix A.

 

Securities and Banking

 

Securities and Banking revenues declined 29% from the prior year period to $4.8 billion.  Excluding the impact of the negative $799 million of CVA/DVA in the third quarter 2012 (compared to a positive $1.9 billion in the prior year period), Securities and Banking revenues were $5.6 billion, 15% higher than the prior year period.

 

Investment Banking revenues of $926 million were 26% above the prior year period.  Debt underwriting revenues increased 32% to $590 million and equity underwriting revenues increased 34% to $142 million.  Advisory revenues of $194 million were 5% higher than the prior year period.  Overall, Citi has gained wallet share year-to-date in all major products and in most regions.

 

Equity Markets revenues of $510 million in the third quarter 2012 (excluding $(117) million of CVA/DVA) were 76% above the prior year period, driven by improved derivatives performance as well as the absence of proprietary trading losses in the prior year, partially offset by lower cash equity volumes.

 

7



 

Fixed Income revenues of $3.7 billion in the third quarter 2012 (excluding [$(672) million of CVA/DVA) increased 63% from the prior year period reflecting significantly higher trading revenues in credit-related and securitized products, as well as strong performance in rates and currencies.

 

Lending revenues decreased 81% to $194 million from the prior year period, reflecting $252 million of losses on hedges related to accrual loans as credit spreads tightened during the third quarter 2012 (compared to a $702 million gain in the prior year period as spreads widened). Excluding the mark-to-market impact of loan hedges related to accrual loans, lending revenues rose 35% to $445 million(8) versus the prior year period reflecting higher lending volumes and improved spreads.

 

Private bank revenues increased 8% to $590million (excluding $(10) million of CVA/DVA) from the prior year period driven primarily by North America lending and deposits.

 

Securities and Banking net income was $1.1 billion in the third quarter 2012, down 48% from the prior year period. Excluding CVA/DVA, net income rose 67% to $1.6 billion from the prior year period, primarily reflecting the 15% increase in year-over-year revenues, a 3% decline in operating expenses, driven by efficiency savings, and lower total credit costs which were a benefit of $(73) million versus a cost of $174 million in the prior year period.

 

Transaction Services

 

(in millions of dollars)

 

3Q’12

 

2Q’12

 

3Q’11

 

QoQ%

 

YoY%

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury and Trade Solutions

 

1,991

 

2,112

 

1,952

 

-6

%

2

%

Securities and Fund Services

 

667

 

695

 

764

 

-4

%

-13

%

Total Revenues

 

$

2,658

 

$

2,807

 

$

2,716

 

-5

%

-2

%

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

$

1,391

 

$

1,412

 

$

1,467

 

-1

%

-5

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

87

 

25

 

17

 

NM

 

NM

 

Loan Loss Reserve Build/(Release) (a)

 

(46

)

51

 

(27

)

NM

 

-70

%

Total Cost of Credit

 

$

41

 

$

76

 

$

(10

)

-46

%

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

843

 

$

910

 

$

877

 

-7

%

-4

%

 

 

 

 

 

 

 

 

 

 

 

 

Average Deposits ($ in billions)

 

$

415

 

$

396

 

$

365

 

5

%

14

%

EOP Assets Under Custody ($ in trillions)

 

$

12.8

 

$

12.2

 

$

12.1

 

5

%

6

%

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

North America

 

623

 

665

 

620

 

-6

%

 

EMEA

 

867

 

930

 

893

 

-7

%

-3

%

LATAM

 

447

 

455

 

444

 

-2

%

1

%

Asia

 

721

 

757

 

759

 

-5

%

-5

%

 

 

 

 

 

 

 

 

 

 

 

 

Income from Continuing Ops.

 

 

 

 

 

 

 

 

 

 

 

North America

 

120

 

124

 

112

 

-3

%

7

%

EMEA

 

283

 

332

 

286

 

-15

%

-1

%

LATAM

 

157

 

185

 

168

 

-15

%

-7

%

Asia

 

286

 

274

 

316

 

4

%

-9

%

 


(a) Includes provision for unfunded lending commitments.

 

Transaction Services

 

Transaction Services revenues were $2.7 billion, down 2% from the prior year period.  Results reflected 2% year-over-year growth in Treasury and Trade Solutions (TTS) revenues to $2.0 billion, offset by a 13% decline in Securities and Fund Services (SFS) revenues to $667 million. TTS revenues increased as the growth in average

 

8



 

assets, particularly trade loans, and deposits continued to be partially offset by ongoing spread compression.  SFS revenues declined largely due to lower settlement volumes given the continued uncertain market conditions.

 

Transaction Services net income of $843 million declined 4% from the third quarter 2011, reflecting the 2% revenue decline and higher total credit costs which rose to $41 million (from a benefit of $(10) million in the third quarter 2011), partially offset by a 5% decline in operating expenses.

 

Transaction Services average deposits and other customer liabilities balances grew 14% year-over-year to $415 billion.  Assets under custody increased 6% from the third quarter 2011 to $12.8 trillion.

 

CITI HOLDINGS

 

(in millions of dollars)

 

3Q’12

 

2Q’12

 

3Q’11

 

QoQ%

 

YoY%

 

 

 

 

 

 

 

 

 

 

 

 

 

Brokerage and Asset Management

 

(4,804

)

87

 

55

 

NM

 

NM

 

Local Consumer Lending

 

1,104

 

931

 

1,299

 

19

%

-15

%

Special Asset Pool

 

10

 

(94

)

(227

)

NM

 

NM

 

Total Revenues

 

$

(3,690

)

$

924

 

$

1,127

 

NM

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenues (Ex-CVA/DVA & Loss on MSSB) (a)

 

$

971

 

$

903

 

$

1,077

 

8

%

-10

%

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

$

1,190

 

$

1,237

 

$

1,512

 

-4

%

-21

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Credit Losses

 

1,807

 

1,329

 

1,881

 

36

%

-4

%

Loan Loss Reserve Build/(Release) (b)

 

(813

)

(269

)

(535

)

NM

 

-52

%

Provision for Benefits and Claims

 

160

 

165

 

204

 

-3

%

-22

%

Total Cost of Credit

 

$

1,154

 

$

1,225

 

$

1,550

 

-6

%

-26

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

(3,562

)

$

(920

)

$

(1,228

)

NM

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Ex-CVA/DVA & Loss on MSSB) (c)

 

$

(679

)

$

(933

)

$

(1,259

)

27

%

46

%

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 

 

 

 

 

 

 

 

 

 

Brokerage and Asset Management

 

(3,019

)

(25

)

(90

)

NM

 

NM

 

Local Consumer Lending

 

(693

)

(821

)

(1,011

)

16

%

31

%

Special Asset Pool

 

150

 

(74

)

(127

)

NM

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

EOP Assets ($ in billions)

 

 

 

 

 

 

 

 

 

 

 

Brokerage and Asset Management

 

9

 

21

 

26

 

-57

%

-65

%

Local Consumer Lending

 

134

 

138

 

176

 

-3

%

-24

%

Special Asset Pool

 

28

 

32

 

45

 

-13

%

-38

%

 

 

 

 

 

 

 

 

 

 

 

 

EOP Loans ($B)

 

122

 

128

 

155

 

-5

%

-21

%

EOP Deposits ($B)

 

67

 

63

 

68

 

7

%

-2

%

 


(a) Please refer to Footnotes 1 and 2 and Appendices A and B.

(b) Includes provision for unfunded lending commitments.

(c) Please refer to Footnotes 1, 2, and 6 and Appendices A and B.

 

Citi Holdings

 

Citi Holdings revenues decreased to $(3.7) billion from $1.1 billion in the prior year period. Revenues in the third quarter 2012 included the $4.7 billion pre-tax loss on MSSB, partially offset by CVA/DVA of $23 million ($50 million in the prior year period). Excluding CVA/DVA and the loss on MSSB, Citi Holdings revenues were $971 million in the third quarter compared to $1.1 billion in the prior year period.  Special Asset Pool revenues were $(13) million (excluding CVA/DVA of $23 million) in the third quarter 2012, compared to $(277) million (excluding CVA/DVA of $50 million) in the prior year period, largely due to lower funding costs as well as an improvement in

 

9



 

asset marks.  Local Consumer Lending revenues of $1.1 billion declined 15% from the prior year period primarily due to the 26% decline in average assets.  Brokerage and Asset Management revenues were $(4.8) billion, compared to $55 million in the prior year period reflecting the $4.7 billion pre-tax loss on MSSB.  As of the end of the third quarter 2012, total Citi Holdings assets were $171 billion, 31% below the prior year period, and represented approximately 9% of total Citigroup assets.

 

Citi Holdings net loss was $3.6 billion in the third quarter 2012 compared to a loss of $1.2 billion in the prior year period. Excluding CVA/DVA and the loss on MSSB, the net loss improved to $679 million, from $(1.3) billion in the prior year period.  The net loss in the third quarter 2012 also reflected a tax benefit of approximately $200 million related to the sale of certain assets in the Special Asset Pool.  Operating expenses decreased 21% to $1.2 billion and credit costs fell 26% to $1.2 billion.  The decline in operating expenses reflected the overall decline in assets.

 

Citi Holdings cost of credit decreased 26% to $1.2 billion versus the prior year period driven by a 4% reduction in net credit losses to $1.8 billion, combined with a 52% increase in the net loan reserve release to $813 million.  Net credit losses in Local Consumer Lending increased by $149 million or 9% from the prior year period to $1.8 billion, while the loan loss reserve release increased $506 million to $761 million.  The increase in net credit losses and the loan loss reserve release in Local Consumer Lending was driven by the incremental charge-offs of approximately $635 million and corresponding loan loss reserve release of approximately $600 million relating to the new OCC guidance described above.  Excluding these incremental charge-offs arising from the new OCC guidance, net credit losses in Local Consumer Lending would have declined by $486 million or 29%.  Cost of credit in the Special Asset Pool increased $7 million, as a decline in net credit losses of $220 million was offset by a $227 million reduction in the reserve release to $52 million in the third quarter 2012.

 

Citi Holdings allowance for credit losses was $11.1 billion at the end of the third quarter 2012, or 9.1% of loans, compared to $14.4 billion, or 9.3% of loans, in the prior year period.  90+ days delinquent loans in Local Consumer Lending decreased 14% to $5.0 billion, or 4.5% of loans.

 

Corporate/Other

 

Corporate/Other revenues declined $267 million from the prior year period to $33 million, mainly driven by the impact of hedging activities and lower investment yield.

 

Corporate/Other net loss was $94 million in the quarter, compared to a loss of $32 million in the prior year period and reflected the $582 million tax benefit related to the resolution of certain tax audit items described above.

 

10



 

RESULTS BY REGION AND SEGMENT

 

 

 

Revenues

 

Income from Continuing Ops.

 

(in millions of dollars)

 

3Q’12

 

2Q’12

 

3Q’11

 

3Q’12

 

2Q’12

 

3Q’11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Consumer Banking

 

5,402

 

5,135

 

5,100

 

1,300

 

1,196

 

1,103

 

Securities and Banking

 

1,439

 

1,926

 

2,445

 

232

 

488

 

674

 

Transaction Services

 

623

 

665

 

620

 

120

 

124

 

112

 

Total North America

 

$

7,464

 

$

7,726

 

$

8,165

 

$

1,652

 

$

1,808

 

$

1,889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EMEA

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Consumer Banking

 

381

 

366

 

379

 

10

 

17

 

9

 

Securities and Banking

 

1,511

 

1,609

 

2,299

 

346

 

365

 

735

 

Transaction Services

 

867

 

930

 

893

 

283

 

332

 

286

 

Total EMEA

 

$

2,759

 

$

2,905

 

$

3,571

 

$

639

 

$

714

 

$

1,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Consumer Banking

 

2,419

 

2,322

 

2,417

 

405

 

329

 

339

 

Securities and Banking

 

802

 

757

 

521

 

363

 

325

 

207

 

Transaction Services

 

447

 

455

 

444

 

157

 

185

 

168

 

Total Latin America

 

$

3,668

 

$

3,534

 

$

3,382

 

$

925

 

$

839

 

$

714

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Consumer Banking

 

1,978

 

1,948

 

2,067

 

449

 

448

 

562

 

Securities and Banking

 

1,018

 

1,113

 

1,460

 

190

 

250

 

526

 

Transaction Services

 

721

 

757

 

759

 

286

 

274

 

316

 

Total Asia

 

$

3,717

 

$

3,818

 

$

4,286

 

$

925

 

$

972

 

$

1,404

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Citicorp

 

$

17,608

 

$

17,983

 

$

19,404

 

$

4,141

 

$

4,333

 

$

5,037

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Citi Holdings

 

$

(3,690

)

$

924

 

$

1,127

 

$

(3,562

)

$

(919

)

$

(1,221

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate / Other

 

$

33

 

$

(265

)

$

300

 

$

(55

)

$

(427

)

$

(74

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Citigroup

 

$

13,951

 

$

18,642

 

$

20,831

 

$

524

 

$

2,987

 

$

3,742

 

 

Citi will host a conference call today at 11:00 AM (EDT).  A live webcast of the presentation, as well as financial results and presentation materials, will be available at http://www.citigroup.com/citi/investor.  Dial-in numbers for the conference call are as follows: (866) 516-9582 in the U.S. and Canada; (973) 409-9210 outside of the U.S. and Canada.  The conference code for both numbers is 28961811.

 

Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

 

Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: http://new.citi.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi

 

Additional financial, statistical, and business-related information, as well as business and segment trends, is included in a Quarterly Financial Data Supplement.  Both this earnings release and Citi’s Third Quarter 2012 Quarterly Financial Data Supplement are available on Citigroup’s website at www.citigroup.com.

 

Certain statements in this release are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission.  These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances.  These statements are not guarantees of future results or occurrences.  Actual results and capital and other financial condition may differ

 

11



 

materially from those included in these statements due to a variety of factors, including the precautionary statements included in this document and those contained in Citigroup’s filings with the U.S. Securities and Exchange Commission, including without limitation the “Risk Factors” section of Citigroup’s 2011 Annual Report on Form 10-K. Any forward-looking statements made by or on behalf of Citigroup speak only as to the date they are made, and Citi does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

 

Contacts:

 

 

 

 

 

 

 

 

Press:

 

Shannon Bell

 

(212) 793-6206

 

Equity Investors:

 

Susan Kendall

 

(212) 559-2718

 

 

Mark Costiglio

 

(212) 559-4114

 

Fixed Income Investors:

 

Ilene Fiszel Bieler

 

(212) 559-5091

 

Appendix A: CVA/DVA

 

(In millions of dollars)

 

3Q’12

 

2Q’12

 

3Q’11

 

Securities and Banking

 

 

 

 

 

 

 

DVA on Citi Liabilities at Fair Value Option

 

(549

)

264

 

1,574

 

Derivatives CVA (a)

 

(249

)

(66

)

314

 

Total Securities and Banking CVA/DVA

 

$

(799

)

$

198

 

$

1,888

 

 

 

 

 

 

 

 

 

Special Asset Pool

 

 

 

 

 

 

 

DVA on Citi Liabilities at Fair Value Option

 

(11

)

6

 

32

 

Derivatives CVA (a)

 

34

 

15

 

19

 

Total Special Asset Pool CVA/DVA

 

$

23

 

$

21

 

$

50

 

Total Citigroup CVA/DVA

 

$

(776

)

$

219

 

$

1,938

 

 


(a) Net of hedges.

Note: Totals may not sum due to rounding.

 

Appendix B: Impact of CVA/DVA, Morgan Stanley Smith Barney (MSSB) and Tax Item in 3Q’12

 

($ millions, except per share amounts)

 

As Reported
(GAAP)

 

Impact of:
CVA/DVA

 

Impact of:
MSSB

 

Impact of:
Tax Item

 

Results less:
MSSB and
CVA/DVA

 

Revenue

 

13,951

 

(776

)

(4,684

)

 

19,411

 

EBIT

 

(964

)

(776

)

(4,684

)

 

4,496

 

Taxes

 

(1,488

)

(291

)

(1,787

)

(582

)

1,172

 

Income from Continuing Ops.

 

$

524

 

$

(485

)

$

(2,897

)

$

582

 

$

3,324

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

(31

)

 

 

 

(31

)

Noncontrolling Interests

 

25

 

 

 

 

25

 

Net Income

 

$

468

 

$

(485

)

$

(2,897

)

$

582

 

$

3,268

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS (a)

 

$

0.15

 

$

(0.16

)

$

(0.94

)

$

0.19

 

$

1.06

 

 


(a)  Earnings per share calculations are based on diluted shares of 3,015.3 million.  The components of earnings per share excluding MSSB, CVA/DVA and tax item may not sum across due to rounding.

 

12



 

Appendix C: Non-GAAP Financial Measures

 

(In millions of dollars)

 

9/30/2012 (a)

 

6/30/2012

 

3/31/2012

 

 

 

 

 

 

 

 

 

Citigroup’s Common Stockholders’ Equity

 

$

186,465

 

$

183,599

 

$

181,508

 

Add: Qualifying Minority Interests

 

161

 

150

 

163

 

Regulatory Capital Adjustments

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

Accumulated net unrealized losses on cash flow hedges, net of tax

 

(2,503

)

(2,689

)

(2,600

)

Cumulative change in fair value of financial liabilities attributable to the change in own creditworthiness, net of tax

 

998

 

1,649

 

1,422

 

Intangible Assets

 

 

 

 

 

 

 

Goodwill (b)

 

27,248

 

29,108

 

30,697

 

Identifiable intangible assets other than mortgage servicing assets (MSAs)

 

5,983

 

6,156

 

6,413

 

Defined benefit pension plan net assets

 

752

 

910

 

873

 

Deferred tax assets (DTAs) arising from net operating losses and foreign tax credit carry forwards

 

23,000

 

21,800

 

22,130

 

Excess over 10%/15% limitations for other DTAs, certain common equity investments, and MSAs (c)

 

24,719

 

27,951

 

31,190

 

 

 

 

 

 

 

 

 

Total Basel III Tier 1 Common Capital (d)

 

$

106,429

 

$

98,864

 

$

91,546

 

 

 

 

 

 

 

 

 

Risk-Weighted Assets (RWA) (e)

 

$

1,238,889

 

$

1,250,233

 

$

1,271,701

 

 

 

 

 

 

 

 

 

Basel III Tier 1 Common Capital Ratio (d)

 

8.6

%

7.9

%

7.2

%

 


(a)     Preliminary.

(b)     Includes goodwill embedded in the valuation of significant common stock investments in unconsolidated financial institutions.

(c)     Aside from MSAs, reflects DTAs arising from temporary differences and significant common stock investments in unconsolidated financial institutions.

(d)     Calculated based on the U.S. regulators proposed rules relating to Basel III (NPR).  Citigroup’s estimated Basel III Tier 1 Common Capital and Tier 1 Common Capital Ratio are based on its current interpretation, expectations, and understanding of the respective Basel III requirements and are necessarily subject to final regulatory clarity and rulemaking, model calibration, and other implementation guidance in the U.S.

(e)     The estimated Basel III risk-weighted assets have been calculated based on the proposed “advanced approaches” for determining risk-weighted assets under the NPR, as well as the final U.S. market risk capital rules (Basel II.5).

 

13



 

Appendix D: Non-GAAP Financial Measures

 

 

 

Preliminary

 

($ millions, except per share amounts)

 

9/30/2012

 

 

 

 

 

Citigroup’s Total Stockholders’ Equity

 

$

186,777

 

Less: Preferred Stock

 

312

 

Common Stockholders’ Equity

 

186,465

 

Less:

 

 

 

Goodwill

 

25,932

 

Intangible Assets (other than Mortgage Servicing Rights)

 

5,963

 

Net Deferred Tax Assets Related to Goodwill and Intangible Assets

 

35

 

Tangible Common Equity (TCE)

 

$

154,535

 

 

 

 

 

Common Shares Outstanding at Quarter-end

 

2,932.5

 

 

 

 

 

Tangible Book Value Per Share

 

$

52.70

 

(Tangible Common Equity / Common Shares Outstanding)

 

 

 

 

 

Appendix E: International GCB Excluding Impact of FX Translation

 

 

 

 

 

QoQ%

 

YoY%

 

(In millions of dollars)

 

3Q’12

 

Reported

 

Constant Dollar

 

Reported

 

Constant Dollar

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

LATAM

 

2,419

 

4

%

3

%

 

7

%

Asia

 

1,978

 

2

%

0

%

-4

%

-2

%

EMEA

 

381

 

4

%

4

%

1

%

7

%

Total International GCB

 

$

4,778

 

3

%

2

%

-2

%

3

%

Expenses

 

 

 

 

 

 

 

 

 

 

 

LATAM

 

1,387

 

2

%

1

%

-7

%

 

Asia

 

1,202

 

4

%

2

%

5

%

8

%

EMEA

 

335

 

-1

%

-1

%

-3

%

3

%

Total International GCB

 

$

2,924

 

2

%

1

%

-2

%

3

%

 


Note: Totals may not sum due to rounding.

 

14