19. REGULATORY CAPITAL AND CITIGROUP INC. PARENT COMPANY INFORMATION

Citigroup is subject to risk-based capital and leverage guidelines issued by the Federal Reserve Board. Citi’s U.S. insured depository institution subsidiaries, including Citibank, N.A., are subject to similar guidelines issued by their respective primary federal bank regulatory agencies. These guidelines are used to evaluate capital adequacy and include the required minimums shown in the following table. The regulatory agencies are required by law to take specific prompt actions with respect to institutions that do not meet minimum capital standards.

The following table sets forth Citigroup’s and Citibank, N.A.’s regulatory capital tiers, risk-weighted assets, quarterly adjusted average total assets, and capital ratios as of December 31, 2013 in accordance with current regulatory guidelines:

In millions of dollars, except ratios	Required minimum		Well capitalized minimum		Citigroup			Citibank, N.A.
Tier 1 Common					$	138,070		$	121,713
Tier 1 Capital					149,444			122,450
Total Capital(1)					181,958			141,341
Risk-weighted assets					1,092,707			905,836
Quarterly adjusted average total assets (2)					1,820,998			1,317,673
Tier 1 Common ratio	N/A		N/A		12.64		%	13.44		%
Tier 1 Capital ratio	4.0	%	6.0	%	13.68			13.52
Total Capital ratio	8.0		10.0		16.65			15.60
Leverage ratio	3.0		5.0	(3)	8.21			9.29

(1) Total Capital includes Tier 1 Capital and Tier 2 Capital.

(2) Represents the Leverage ratio denominator.

(3) Applicable only to depository institutions.

N/A Not Applicable

As indicated in the table above, Citigroup and Citibank, N.A. were well capitalized under the current federal bank regulatory definitions as of December 31, 2013.

Banking Subsidiaries—Constraints on Dividends

There are various legal limitations on the ability of Citigroup’s subsidiary depository institutions to extend credit, pay dividends or otherwise supply funds to Citigroup and its non-bank subsidiaries. The approval of the Office of the Comptroller of the Currency is required if total dividends declared in any calendar year exceed amounts specified by the applicable agency’s regulations. State-chartered depository institutions are subject to dividend limitations imposed by applicable state law.

In determining the dividends, each depository institution must also consider its effect on applicable risk-based capital and leverage ratio requirements, as well as policy statements of the federal regulatory agencies that indicate that banking organizations should generally pay dividends out of current operating earnings. Citigroup received $12.2 billion and $19.1 billion in dividends from Citibank, N.A. during 2013 and 2012, respectively.

Non-Banking Subsidiaries

Citigroup also receives dividends from its non-bank subsidiaries. These non-bank subsidiaries are generally not subject to regulatory restrictions on dividends, although their ability to declare dividends can be restricted by capital considerations, as set forth in the table below.

In millions of dollars

Subsidiary	Jurisdiction	Net capital or equivalent		Excess over minimum requirement
Citigroup Global Markets Inc.	U.S. Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1)	$	5,376	$	4,546
Citigroup Global Markets Limited	United Kingdom’s Financial Services Authority	$	7,425	$	4,333

Citigroup Inc. Parent Company Only Income Statement and Statement of Comprehensive Income

	Years ended December 31,
In millions of dollars	2013			2012			2011
Revenues
Interest revenue	$	3,234		$	3,384		$	3,684
Interest expense	5,559			6,573			7,618
Net interest expense	$	(2,325	)	$	(3,189	)	$	(3,934	)
Dividends from subsidiaries	13,044			20,780			13,046
Non-interest revenue	139			613			939
Total revenues, net of interest expense	$	10,858		$	18,204		$	10,051
Total operating expenses	$	851		$	1,497		$	1,503
Income before taxes and equity in undistributed income of subsidiaries	$	10,007		$	16,707		$	8,548
Benefit for income taxes	(1,637		)	(2,062		)	(1,821		)
Equity in undistributed income (loss) of subsidiaries	2,029			(11,228		)	698
Parent company’s net income	$	13,673		$	7,541		$	11,067
Comprehensive income
Parent company’s net income	$	13,673		$	7,541		$	11,067
Other comprehensive income (loss)	(2,237		)	892			(1,511		)
Parent company’s comprehensive income	$	11,436		$	8,433		$	9,556

Citigroup Inc. Parent Company Only Balance Sheet

	Years ended December 31,
In millions of dollars	2013		2012
Assets
Cash and due from banks	$	233	$	153
Trading account assets	184		150
Investments	1,032		1,676
Advances to subsidiaries	83,110		107,074
Investments in subsidiaries	203,739		184,615
Other assets (1)	106,170		102,335
Total assets	$	394,468	$	396,003
Liabilities
Federal funds purchased and securities loaned or sold under agreements to repurchase	$	185	$	185
Trading account liabilities	165		170
Short-term borrowings	382		725
Long-term debt	156,804		176,553
Advances from subsidiaries other than banks	24,181		12,759
Other liabilities	8,412		16,562
Total liabilities	$	190,129	$	206,954
Total equity	204,339		189,049
Total liabilities and equity	$	394,468	$	396,003

(1) Other assets included $43.3 billion of placements to Citibank, N.A. and its branches at December 31, 2013, of which $33.6 billion had a remaining term of less than 30 days. Other assets at December 31, 2012 included $30.2 billion of placements to Citibank, N.A. and its branches, of which $28.2 billion had a remaining term of less than 30 days.

Citigroup Inc. Parent Company Only Cash Flows Statement

	Years ended December 31,
In millions of dollars	2013			2012			2011
Net cash provided by (used in) operating activities of continuing operations	$	(7,881	)	$	1,598		$	1,710
Cash flows from investing activities of continuing operations
Purchases of investments	$	—		$	(5,701	)	$	(47,190	)
Proceeds from sales of investments	385			37,056			9,524
Proceeds from maturities of investments	233			4,286			22,386
Changes in investments and advances—intercompany	7,226			(397		)	32,419
Other investing activities	4			994			(10		)
Net cash provided by investing activities of continuing operations	$	7,848		$	36,238		$	17,129
Cash flows from financing activities of continuing operations
Dividends paid	$	(314	)	$	(143	)	$	(113	)
Issuance of preferred stock	4,192			2,250			—
Proceeds (repayments) from issuance of long-term debt—third-party, net	(13,426		)	(33,434		)	(16,481		)
Net change in short-term borrowings and other advances—intercompany	11,402			(6,160		)	(5,772		)
Other financing activities	(1,741		)	(199		)	3,519
Net cash provided by (used in) financing activities of continuing operations	$	113		$	(37,686	)	$	(18,847	)
Net increase (decrease) in cash and due from banks	$	80		$	150		$	(8	)
Cash and due from banks at beginning of period	153			3			11
Cash and due from banks at end of period	$	233		$	153		$	3
Supplemental disclosure of cash flow information for continuing operations
Cash paid (received) during the year for
Income taxes	$	(71	)	$	78		$	(458	)
Interest	6,514			7,883			9,271

Note: With respect to the tables above, “Citigroup Inc. parent company only” refers to the parent holding company Citigroup Inc., excluding consolidated subsidiaries. Citigroup Funding Inc. (CFI) was previously a first-tier subsidiary of Citigroup Inc., issuing commercial paper, medium-term notes and structured equity-linked and credit-linked notes. The debt of CFI was guaranteed by Citigroup Inc. On December 31, 2012, CFI was merged into Citigroup Inc., the parent holding company.