Fourth Quarter and 2000 Earnings Review

Transcription

1 Fourth Quarter and 2000 Earnings Review January 16, 2001

2 Full Year 2000 Highlights Record $14.14B Core Earnings in 2000 (after charges), up 25%!14% Revenue growth!24% ROE on $64.5B in Common Equity vs. 22% on $56.4B in 1999!Acquisition of Associates First Capital completed $600MM (pre-tax) in cost savings Immediately accretive to earnings Charges (after tax) include: $135MM transportation loss provision $11MM in 4Q00 ($163 MM full year 2000) conforming accounting adjustments $459MM in 4Q00 restructuring and merger related expenses!credit remains sound!significant progress on Internet initiatives!continue to strengthen competitive position in key franchises

3 Diversified Global Earnings Growth - 4Q Fourth Quarter 2000 Core Income ($ in Millions) Global Consumer Global Corporate & Investment Bank Global Investment Mgmt. &PrivateBanking Associates* 4Q00 $1,466 1, Q99 $ 1,171 1, % Change 25% 10% 8% (27%) Note: Excluding Corporate/Other Global Consumer 55% 6% Investment Activities Global Corporate & Investment Bank 39% 5% Global Investment Mgmt. &PrivateBanking Investment Activities (5%) Corporate/Other (204) (215) 5% North America 70% Core Income Diluted EPS ROE $ 3,331 $ % $ 2,998 $ % *AFS net of transportation loss provision of $135 MM and conforming adjustments of $11 MM 11% 12% Note: Excluding Investment Activities 4% Europe 4% 5% Japan 8% 9% CEEMEA* Latin America Asia *CEEMEA (Central & Eastern Europe, Middle East and Africa) includes the Indian sub-continent

4 Across the Board Performance Core Income Fourth Quarter 2000 (Year-over-Year %) Japan Consumer Emerging Markets Corporate Travelers Life & Annuity Mortgage Banking Western Europe Consumer Citibanking North America North America Cards Commercial Lines CitiFinancial Global Private Bank Emerging Markets Consumer Primerica Financial Services Associates* SSB Citi Asset Mgmt. Personal Lines SSB/GRB 0% (9%) (13%) 8% 8% 31% 27% 26% 25% 22% 16% 14% 38% Global Cards 31% 55% 94% 72% Two-thirds of ofbusinesses generating double doubledigit digitearnings growth *Associates before transportation loss provision

5 Diversified Global Earnings Growth - Full Year Full Year 2000 Core Income ($ in Millions) Global Consumer Global Corporate & Investment Bank Global Investment Mgmt. &PrivateBanking Associates* 2000 $ 5,294 6, , $ 4,347 4, ,402 % Change 22% 28% 15% (1%) Note: Excluding Corporate/Other Global Consumer 47% 9% Investment Activities 5% Global Corporate & Investment Bank 45% Global Investment Mgmt. &PrivateBanking Investment Activities 1, % Corporate/Other Core Income Diluted EPS ROE (953) $ 14,140 $ % (655) $ 11,345 $ % (45)% *AFS net of transportation loss provision of $135 MM and conforming adjustments of $163 MM 25% 25% Note: Excluding Investment Activities North America 64% 8% Latin America 9% *CEEMEA (Central & Eastern Europe, Middle East and Africa) includes the Indian sub-continent 4% Asia 7% 8% Europe Japan CEEMEA*

6 Consolidation of Associates First Capital Status of Integration Over year end, converted 750 Associates branches to CitiFinancial s brand, systems and management; closed 160 combined branches Consolidating corporate staff, reducing by one-third through Q Bankcard management consolidated ($ in after tax millions) Associates Core Income Before... Transportation loss provision Conforming/other adjustments Associates Core Income Restructuring and merger-related charges Total Associates- related charges 4Q00 $ $ 289 $ 459 $ $ 1, $ 1,381 $ 459 $ 757 $600 MM (pre-tax) in cost savings Two-thirds realized within first year consolidating corporate and administrative functions cost savings from cards consolidation additional leverage with vendor contracts real estate saves from branch consolidation Japan funding benefit

7 Citigroup Consumer Credit Quality N.A. Bankcards - Net Credit Losses as a % of Average Loans 7.00% 5.85% 6.04% 5.50% 5.56% 5.85% 5.65% 5.15% 4.82% 4.71% 4.65% 4.40% 4.43% 4.35% 4.00% 3.96% 3.50% 3.66% 1.00% 1Q97 2Q97 3Q97 4Q97 1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 CitiFinancial Net Credit Losses as a % of Average Loans 4.00% 3.00% 2.00% 1.00% 2.99% 2.99% 2.87% 2.51% 2.93% 2.78% 2.61% 2.67% 2.39% 2.15% 2.01% 2.19% 1.93% 1.93% 1.92% 2.04% 1Q97 2Q97 3Q97 4Q97 1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q % International Consumer - Net Credit Losses as a % of Average Loans 2.00% 1.51% 1.47% 1.40% 1.38% 1.50% 1.68% 1.74% 1.77% 2.12% 2.29% 2.06% 1.86% 1.91% 1.68% 1.63% 1.97% * 1.00% 1Q97 2Q97 3Q97 4Q97 1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 *4Q00 of 1.97% includes FFIEC write-offs; ex-ffiec in 4Q00 was 1.53%

8 Citigroup Corporate Bank Credit Quality 2.00% 1.50% Global Relationship Banking Cash Basis Loans as a % of EOP Loans 1.56% 1.28% 1.21% 1.11% 1.00% 0.92% 0.87% 0.80% 0.97% 0.74% 0.68% 0.68% 0.71% 0.60% 0.66% 0.72% 0.66% 0.50% 1Q97 2Q97 3Q97 4Q97 1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q % Emerging Markets Cash Basis Loans as a % of EOP Loans 2.50% 2.00% 1.50% 1.29% 1.44% 1.55% 1.56% 2.20% 2.32% 2.23% 2.30% 2.28% 2.48% 2.37% 2.10% 2.17% 2.12% 2.16% 2.01% 1.00% 0.50% 1Q97 2Q97 3Q97 4Q97 1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00

9 Executing Growth Strategy Citigroup Strategic Focus Emerging Markets Global Cards Global Consumer Finance Global Insurance Global Corporate Finance Wealth Management 2000 Performance Core income of $2.7 billion, up 34% Acquired Handlowy, EFG Hermes, ING bank branches # 1 Emerging Markets Bank Core income of $2.2 billion, up 30%; Receivables up 18% Acquired Associates, Diners Japan and Canada Trust #1 Globally, 100 million accounts, 46 countries Core income of $1.5 billion, up 21% #1 in US, #4 in Japan Core income of $2.7 billion, up 21% TAP buyback, joint venture with Fubon, Reliance acquisition PFS launched in Spain Global Corporate Finance core income of $3.6 billion, up 20% Acquired Schroders and the Geneva Group #1 in Global Underwriting; IFR s Best Bank for 2 years running Core income of $3.2 billion, up 20% Acquired Garante and Siembra; CitiStreet joint venture Distribution investment in branches, sales forces # 2 wealth management company Note: Some of the above income segments overlap with others.

10 Building the Preeminent Global Cards Franchise ($ B) $140 $120 $100 $80 $60 $40 $20 $0 $49.0 $57.2 Managed Receivables 6-Yr. CAGR 16% $62.2 $66.0 $89.1 $99.4 $ Citibank N.A. Cards Citibank International Associates Global Cards!30% income growth in 2000 to $2.2 billion!universal card consolidation generates cost savings of $100 million in 2001!100 million accounts!10 acquisitions in 2000!Increased market share of U.S. receivables from 16.5% to 20.0%!Best-in-Industry cost position!best-in-industry credit performance

11 Leadership in Wealth Management Full Year 2000 up 20% $16.6 B $3.2 B $1.8 Tr** Revenues Core Income Volumes GCB Investment, Annuity and Life Insurance Products $6,435 $1,406 Private Banking Asset Mgmt. $1,893 Private Client $6,915 GCB Investment, Annuity and Life Insurance Products $1,414 $324 Private Banking Private Client $1,070 $361 Asset Mgmt. GCB Investment, Annuity and Life Insurance Products $608* $153* Private Banking Private Client $977* Asset Mgmt. $401* *#s before adjustment for cross-sell volumes **Adjusted total for cross-sell

12 Private Client Performance $1,200 $1,000 Global Private Client Core Income ($ in Millions) 2-Yr. CAGR 24% $918 $1,070 Core income over $1 billion in 2000 (up 17%) $800 $600 $693 Pre-tax margins of over 25% $400 $100 $ Net Asset Flows ($ in Billions) 2-Yr. CAGR 39% $46 $67 $89 Record $89 billion in net new assets Record $977 billion in client assets $

13 Private Client Performance $600 $500 $400 $300 $250 $200 $150 $100 $434 Total Gross Production Per FC ($ in Thousands) 2-Yr. CAGR 8% $481 $ Total Assets Under Fee-Based Management ($ in Billions) $126 2-Yr. CAGR 27% $170 $202 4Q98 4Q99 4Q00 12,130 FCs, up domestic retail branches, up 8% #1 in industry productivity; record $510,000 (gross/fc) Industry's lowest FC attrition 1.5MM online accounts Ultra-high net worth clients account for over 50% assets Relationship with 1 in 7 affluent households; 1 in 10 ultra high-net worth Fee-based assets account for 20% of total client assets and 1/3 of revenues

14 Delivering on the Internet Citi Consumer Gateway CBOL Credit Cards Student Loan & Mortgages Travelers

15 Capital Discipline Full Year 2000 Stockholders equity (1) (billions) ROE (Full Year) Strong regulatory capital ratios Tier I Ratio (>7.5% (3) ) Total Capital Ratio (>10.5% (3) ) GAAP Assets (billions) 12/31/00 $ % 8.4% 11.3% $ 901 (2) (2) (2) (2) 12/31/99 $ % 8.9% 11.3% $799 Consistent share repurchase 15.3 million shares for 4Q million shares for full year 2000 Repurchase cost of $4.0 billion for 2000 Diluted shares outstanding billion for full year 2000 (1) Includes trust securities (2) Preliminary (3) Management guideline

16 Citigroup Business Model Diversified global earnings growth Geography, product, channel Stable and recurring income Business leadership Market share leaders Distribution power Management discipline Expense and risk management Cross-sell management Acquisition integration Technology leadership Internet enabled Scale platforms Capital Strength Efficient management Play offense

17 Statements made today may include forward-looking information subject to risks, uncertainties and other factors that could materially affect actual results. For further information please see Citigroup's reports filed with the SEC pursuant to the Securities Exchange Act of 1934 which are available at the SEC's website (