Third Quarter 2009 Earnings Review. October 15, 2009

Transcription

1 Third Quarter 2009 Earnings Review October 15, 2009

2 Third Quarter 2009 Summary Strong balance sheet: Tangible Common Equity substantially improved to $102B, Tier 1 Capital Ratio stable at 12.7% Franchise remains strong Record YTD revenues in the Institutional Clients Group Record YTD net income in Transaction Services Growth in Regional Consumer Banking revenues and deposits Credit losses declined slightly but remain elevated -- delinquency trends improving in international markets, but mixed in the U.S. Citi Holdings assets down $32B in the quarter, $281B from peak Continuing to execute our strategy and return Citi to sustained profitability and growth 1

3 Major P&L Items in 3Q 09 Pre-tax ($MM) Impact Segment Citicorp Credit Value Adjustment $(1,677) S&B Citi Holdings Net Revenue Marks (1) 1,513 SAP Gain from Exchange Offers (2) 1,382 Corp/Other (1) Please see details on slide 36. (2) Gain from the extinguishment of debt associated with the trust preferred securities held by public investors ($851 million after-tax). 2

4 Summary Income Statement ($B, except EPS) 3Q 09 3Q 08 % Net Interest Revenue $12.0 $13.4 (10)% Non-Interest Revenue NM Net Revenues Operating Expenses (16) Net Credit Losses Net LLR build / (Release) (80) Other (1) NM Credit Losses, Claims & Benefits Pre-tax Income from Cont. Ops. (0.5) (6.8) 92 Income Taxes (1.1) (3.3) 66 Income from Cont. Ops. $0.6 $(3.5) NM Net Income 0.1 (2.8) NM Net income Available to Common $(3.2) $(2.9) (10)% Diluted EPS from Cont. Ops. (2, 3) $(0.23) $(0.72) 68% Diluted EPS (2, 3) (0.27) (0.61) 56 (1) Policyholder benefits and claims and provision for unfunded lending commitments. (2) Includes $(2.2) billion impact to common shareholders from the completion of all stages of the exchange offers. (3) Diluted shares used in the diluted EPS calculation represent basic shares due to the negative income available to common shareholders. Using actual diluted shares would result in anti-dilution. Note: Totals may not sum due to rounding. 3

5 Earnings Per Share 3Q 09 $MM Diluted EPS (1) Net Income (2) $101 $0.01 Preferred Dividends (3) (288) (0.02) 02) Impact of Exchange Offers (4) (3,055) (0.25) Income Available to Common $(3,242) $(0.27) (1) Diluted shares used in the diluted EPS calculation represent basic shares of 12,104 million due to the negative income available to common shareholders. Using actual diluted shares would result in anti-dilution. (2) $851 million after-tax gain from the extinguishment of debt associated with the trust preferred securities held by public investors. (3) Dividends on USG preferred shares accrued up to July 23, 2009 and July 30, 2009, the date of conversion to interim securities and the newly-issued trust preferred securities, as applicable. It includes $16 million related to the quarterly amortization of the TARP warrants discount. (4) Impact tto common shareholders h from the completion of all stages of the exchange offers, excluding the $851 million gain flowing through net income. Note: Totals may not sum due to rounding. 4

6 Citigroup Revenues ($B) Citicorp Smith Barney Gain: $11.1 Holdings 30.0 Corp/Other (4.5) (1.3) (0.5) (5.0) (0.4) (0.1) (0.7) 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Managed Revenues Ex-Net Revenue Marks (1) Citigroup Citicorp Holdings (1) Managed metrics are non-gaap measures. Please see slide 39 for additional information on these metrics. Managed revenues exclude net revenue marks (please see details on slides 35 and 36). For Citigroup, these also exclude the 2Q 09 $11.1 billion Smith Barney gain on sale and the 3Q 09 $1.4 billion gain from the extinguishment of debt associated with the trust preferred securities held by public investors. Citi Holdings excludes the 2Q 09 Smith Barney gain on sale. Note: Totals may not sum due to rounding. 5

7 Citicorp N.A. Consumer Banking Revenues ($B) Managed Revenues (1) GAAP Net Impact from Card Sec. Managed revenues up 4% QoQ Retail Banking: Growth in deposits and loans QoQ Citi-Branded Cards: 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Key Revenue Drivers (% ) YoY QoQ 1Q 09 2Q 09 3Q 09 3Q 09 Average Mgd. Loans (1) 2% 1% 1% 1% Average Deposits Cards Purchase Sales (17) (18) (14) (0) Higher credit losses flowing through securitization trusts Lower securitization gains QoQ (1) Managed metrics are non-gaap measures. See slide 39 and 40 for additional information on these metrics. 6

8 Citicorp Int l Consumer Banking Revenues ($B) Revenues EMEA LatAm Asia Sequential improvement in revenue drivers Asia: up 3% QoQ, 1% ex-fx Improving environment driving positive momentum Higher customer activity Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Key Revenue Drivers (% ) YoY QoQ 1Q 09 2Q 09 3Q 09 3Q 09 Average Loans (17)% (16)% (11)% 4% Average Deposits (17) (12) (6) 3 Cards Purchase Sales (23) (21) (11) 9 Int l R.B. Invest. Sales (40) (3) (0) (8) Latin America: flat QoQ, down 2% ex-fx Improving macro situation ti Continue to de-risk portfolio: spread compression EMEA: up 5% QoQ, 1% ex-fx Revenue drivers up, but market conditions remain uncertain Note: Totals may not sum due to rounding. 7

9 Citicorp Securities & Banking Revenues ($B) Revenues Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 CVA of $(1.7)B Fixed Income Markets: Continuing strength in Interest Rates & Currencies CVA of $(760)MM Equity Markets: Solid client flows driving cash and prime finance, offset by derivatives Ex - Credit Value Adjustment t (1) CVA of $(878)MM Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Investment Banking: Uptick in advisory offset modest decline in debt underwriting Private Bank: Improvement in client volumes (1) Non-GAAP financial measure. For a reconciliation of these measures to the most directly comparable GAAP measure, please see slide 40. 8

10 Citicorp Transaction Services Revenues ($B) Revenues Treasury and Trade Solutions Security Services Stable franchise in uncertain market conditions Improved revenue drivers Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Treasury and Trade Solutions: Liability balance growth and higher fees more than offset spread compression (YoY) Security Services: Fees from higher AUCs offset seasonality and spread compression (QoQ) Average Deposits & Liabilities EOP Assets Under Custody ($Tr) Q'08 4Q'08 1Q'09 2Q'09 3Q'09 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Note: Totals may not sum due to rounding. 9

11 Citi Holdings Assets and Revenues ($B) EOP Assets Revenues $(281)B Smith Barney Gain: $ (4.5) (5.0) 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Managed Revenues (1, 2) (3.9) (4.1) Managed Revenues ex-net Revenue Marks (1, 2) (1) Excludes the 2Q 09 $11.1 billion Smith Barney gain on sale. (2) Managed metrics are non-gaap measures. Please see slide 39 for additional information on these metrics. Net revenue marks listed on slide

12 Citi Holdings Revenue by Business Brokerage & Asset Management Local Consumer Lending (Managed) (2) ($B) ($B) Cards Sec. Impact GAAP (1) Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Special Asset Pool ($B) 1.4 (0.5) (4.7) (6.6) (6.8) (11.7) (14.4) 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Brokerage and Asset Management: Completed sale of Managed Futures: $320MM pre-tax GOS Local Consumer Lending: Asset reduction, loan modifications and higher delinquencies reducing NIR Special Asset Pool: Positive net revenue marks of $1.5B (1) Excludes the $11.1 billion Smith Barney gain on sale. (2) Managed metrics are non-gaap measures. Please see slide 40 for additional information on these metrics. 11

13 Citigroup Expenses ($B) Citicorp 24.6 Holdings Holdings: $(625)MM or (16)% QoQ Benefit of Smith Barney transaction and overall reengineering efforts (1) (1) Citicorp: $332MM or 4% QoQ Increases in compensation, mainly in Securities & Banking FX translation 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 (1) Excludes the impact from the $9.6 billion goodwill impairment charge, but includes the $1.0 billion impact from the write-down of intangible assets related to Nikko Asset Management. Note: Totals may not sum due to rounding or Corporate/Other (not shown). 12

14 Citigroup Provisions (1) ($B) (2) Net Credit Losses Loan Loss Reserves PB&C Corporate Q'08 2Q'09 3Q' Consumer Q'08 2Q'09 3Q'09 1Q'08 Q08 2Q'08 Q08 3Q'08 4Q'08 Q08 1Q'09 Q09 2Q'09 Q09 3Q'09 (1) Provisions for Credit Losses and for Benefits and Claims. (2) Loan Loss Reserves include provision for unfunded lending commitments and credit reserve builds/releases. Note: Totals may not sum due to rounding or Corporate/Other (not shown). 13

15 Citigroup Consumer Credit Trends Avg. Loans ($B) NCL Ratio Loan Loss Reserve Ratio 5.29% 4.61% 3.83% 3.15% 4.95% 226% 2.26% 262% 2.62% 412% 4.12% 1.83% 3.57% 2.58% 2.95% 1.74% 2.11% 6.25% 6.44% 5.88% 5.73% Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Note: The consumer loan loss reserve balance was decreased by $562 million due to the transfer of a U.K. cards portfolio to held-for-sale. NCLs as a % of average loans; Loan Loss Reserves as a % of EOP loans. 14

16 Citigroup Consumer Credit Coverage and Credit Losses NCLs Holdings ($B) NCLs Citicorp ($B) Months of Coverage (1) Managed (2) NCLs ($B) 9.4 Int l 23% N.A. 77% 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 3Q'09 (1) Months of coverage: current reserve balance / (current period net credit losses / 3). (2) Managed metrics are non-gaap measures. Please see slide 40 for additional information on these metrics. Note: Totals may not sum due to rounding. 15

17 Managed N.A. Cards Consumer Credit Trends Citicorp ($B) 90+DPD NCLs $1.05 $1.27 $0.76 $0.87 $2.09 $2.15 $2.08 $1.81 $2.06 $1.38 $1.42 $1.45 $1.97 $1.69 Avg. Mgd. Loans $1.39 (1) : $1.15 $1.23 2Q 09: $80.4 $1.00 3Q 09: $81.7 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Citi Holdings ($B) 90+DPD NCLs $1.49 $1.56 $1.61 $1.29 $ $1.29 $0.88 $1.05 $1.73 $1.46 $2.29 $2.13 $2.13 $2.10 $2.15 $1.96 $2.00 $1.62 Avg. Mgd. Loans (1) : 2Q 09: $60.9 3Q 09: $59.8 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Unemployment Rate 4.7% 5.0% 5.1% 5.5% 6.1% 7.2% 8.5% 9.5% 9.8% (1) Managed metrics are non-gaap measures. Please see slide 41 for additional information on these metrics. Note: Totals may not sum due to rounding. 16

18 Citi Holdings N.A. Mortgage Credit Trends 1 st Mortgages ($B) Avg. Loans: 2Q 09: $131 3Q 09: $125 $3.15 $ DPD $4.59 NCLs $5.28 $6.43 $7.75 $9.55 $10.23 $12.46 $0.14 $0.20 $0.36 $0.49 $0.75 $0.86 $1.00 $1.27 $1.09 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 2 nd Mortgages ($B) Avg. Loans: 2Q 09: $61 3Q 09: $58 $0.96 $0.69 $0.29 $ DPD NCLs $1.34 $1.18 $1.06 $0.52 $0.60 $0.66 $1.57 $0.81 $1.92 $1.91 $1.71 $0.94 $1.16 $1.13 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 S&P/Case-Shiller Home Price Index (1) (4.3)% (8.5)% (13.8)% (14.9)% (16.5)% (18.4)% (19.1)% (14.9)% n/a (1) Year-over-year change in the S&P Case-Shiller index of U.S. National Values. Third quarter 2009 not yet available. 17

19 Citi Holdings N.A. Mortgage Delinquencies First Mortgage Delinquencies ($B) Days Past Due: DPD Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Note: Totals may not sum due to rounding. 18

20 Citigroup Int l Consumer Credit Trends Citicorp Asia Consumer Banking 90+DPD NCL ratio 2.30% 2.17% 1.66% 1.83% 1.44% 1.32% Avg. Loans: 1.13% 3Q 09: $64.3B 0.98% 0.99% 0.91% 1.05% 0.89% 0.64% 0.66% 0.65% 0.70% 0.69% 0.74% Citicorp Latin America Consumer Banking 90+DPD NCL ratio 7.79% 7.73% 8.31% 8.83% 9.04% 6.91% 6.09% 5.32% 5.27% Avg. Loans: 3Q 09: $28.8B 3.19% 3.35% 3.73% 2.83% 2.88% 2.98% 2.93% 3.16% 2.85% 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Citicorp EMEA Consumer Banking Holdings International ti LCL 90+DPD NCL ratio 90+DPD NCL ratio Avg. Loans: 3Q 09: $8.7B 4.12% 4.57% 5.78% 6.34% 9.69% 9.77% Avg. Loans: 8.44% 3Q 09: $39.5B 6.84% 5.28% 5.25% 5.47% 6.02% 4.37% 1.69% 1.94% 2.03% 1.91% 2.10% 1.94% 3.47% 3.81% 3.88% 1.43% 1.69% 0.54% 0.57% 0.55% 0.61% 0.68% 0.91% 1.82% 1.56% 1.71% 1.91% 2.21% 2.68% 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 19

21 Citigroup Deposits (EOP $B) Citicorp Holdings Corp/Other Disc Ops Deposits % Loans 105% 106% 105% 108% 109% 112% 116% 125% 134% Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 (1) (1) Preliminary. 20

22 Citigroup Assets (EOP $Tr) Citicorp Holdings Corp/Other Cash & Deposits with Banks % Assets 4.1% 4.9% 4.7% 5.4% 6.9% 10.3% 10.5% 11.3% 12.9% Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 (1) Net Interest Revenue as a % of Average Interest-Earning Assets (NIM) 2.36% 2.52% 2.82% 3.17% 3.15% 3.26% 3.33% 3.24% 2.93% (1) Preliminary. Note: Totals may not sum due to rounding. 21

23 Citigroup Key Capital Metrics Tier 1 Capital Total Capital Tier 1 Common (1) Tangible Common Equity (1) 15.7% 15.6% 16.6% 16.6% 10.6% 10.7% 11.2% 12.3% 11.7% 11.9% 11.9% 12.7% 12.7% 10.3% 7.3% 7.1% 7.7% 8.7% 82% 8.2% 9.1% 6.1% 5.7% 4.9% 48% 4.8% 4.2% 4.4% 4.1% 4.3% 3.8% 3.7% 3.1% 3.0% 2.3% 2.2% 4.0% 2.7% 3Q'07 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 (2) (1) Tier 1 Common and Tangible Common Equity are non-gaap measures. (2) Preliminary. Note: Totals may not sum due to rounding. 22

24 Conclusions Continue to execute on our strategy Citi Holdings decreased assets by $281B since 1Q 08 Closed the sale of Nikko businesses Selective re-investments in Citicorp businesses Solid managed revenues, clients remain engaged Stable expenses Consumer credit costs starting to show a diverging story N.A. trends reflect uncertain economic environment International trends improving Strong g capital and liquidity positions 23

25 APPENDIX Table of Contents 25. Share Count Calculation 26. Citigroup International Consumer Credit Trends 27. Citicorp RCB Average Loans 28. Citi Holdings Assets 29. Citi Holdings LCL Loan Composition 30. Citi Holdings LCL International Average Loans 31. Citi Holdings SAP Assets 32. Citi Holdings SAP Assets (cont.) 33. Citicorp S&B Revenue Detail 34. Citigroup Credit Value Adjustment 35. Citicorp S&B Revenue Marks 36. Citi Holdings Revenue Marks 37. Corporate / Other 38. Summary of Press Release Disclosed Items Non-GAAP Financial Measures 24

26 Share Count Calculation Average Shares - 3Q 09 Shares (MM) Days July 1 st July 28 th 5, July 29th September 9th 11, September 10th Sep. 30th 22, Average Shares 12, Note: The average for 4Q 09 will be approximately 22.9 billion shares. 25

27 Citigroup Int l Consumer Credit Trends 3Q 09 Citicorp Rank % of Total 90+DPD NCL % of Total ANR ANRs Ratio Ratio NCLs Korea % 0.5% 1.4% 6.0% Mexico Australia Singapore India Brazil Taiwan Malaysia Hong Kong Poland % 1.5% 4.5% 72.8% Citi Holdings UK % 6.0% 7.4% 21.4% Japan Spain Greece Belgium % 3.9% 9.6% 77.2% Note: For 3Q 09, Citicorp total ANR of $101.8B and total NCLs of $1.1B, Citi Holdings total ANR of $40.3B and total NCLs of $1.0B. 26

28 Citicorp RCB (1) Average Loans 3Q 09 North America (2) $88.6B EMEA $8.7B Cards Commercial Cards 3% 92% Banking 34% 1% Other 2% 2% Mortgages Personal Personal 39% 22% 4% Commercial Banking Other 1% Mortgages Latin America $28.8B Asia $64.3B Commercial 30% Cards 26% Banking 18% Commercial Banking Cards 42% 4% 10% Other Personal 12% 6% Other 14% Mortgages g 38% Personal Mortgages (1) Regional Consumer Banking. (2) Managed basis. Managed metrics are non-gaap measures. Please see slide 40 for additional information on these metrics. 27

29 Citi Holdings Assets ($B) EOP Assets ($B) Brokerage & Asset Management: $59B $(281)B Retail Alternative Investments 5% 9% Latin America Asset Management Nikko 42% 44% MS Smith Barney JV 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Local Consumer Lending: $376B Mtg. Warehouse MSR 2% Other 7% Primerica 3% N.A. Cards Other Loans 1% International Loans 4% 6% 10% 48% 19% N.A. Mortgage Loans Other N.A. Loans Equity 7% Special Asset Pool: $182B Consumer & SMEs3% 4% Other SIVs 9% Monolines 1% Highly Lev 2% Fin. Commit. Marked to Market 21% 30% 23% Securities at AFS/HTM Loans, Leases & Letters of Credit at HFI/HFS Note: Totals may not sum due to rounding. 28

30 Citi Holdings LCL Loan Composition 3Q 09 ($B) EOP Loans % EOP Loans NCL % of Total 90+ 3Q 09 2Q 09 Ring-fenced (1) Ratio NCLs DPD% N.A. Loans $273.4 $ % 5.61% 81.0% 6.26% First mortgages Second mortgages Student Cards (Retail Partners) Personal & Other Auto Commercial Real Estate t International $37.3 $ % 19.0% 3.88% EMEA Asia Latin America Total $310.7 $ % 6.11% 100% 5.97% (1) Ring-Fenced refers to the loans covered under the loss-sharing agreement with the U.S. government. Note: Totals may not sum due to rounding. 29

31 Citi Holdings LCL International Avg. Loans 3Q 09 EMEA by Type Asia by Type Other Personal 3% 33% 40% 24% Cards Real Estate Personal 59% 1% Other 11% Commercial 29% Real Estate 3Q 09 Total: $28B 3Q 09 Total: $11B 30

32 Citi Holdings SAP Assets 3Q 09 ($B) EOP Assets % of Assets Face EOP Assets 3Q 09 2Q 09 Ring-fenced (1) Value (% of Face) Securities at AFS/HTM (2) $ 54.9 $ % $ % Corporates % % Prime and Non-U.S. MBS % % Auction Rate Securities % % Alt-A mortgages % % Government Agencies % % Other Securities (3) % % Loan, leases & LC at HFI/HFS (4) $ 41.3 $ 44.6 NM NM NM Corporates % % Commercial Real Estate % % Other % % Loan Loss Reserves (4.0) (4.1) NM NM NM Mark to Market $ 38.5 $ % NM NM Subprime securities % % Other Securities (5) % % Derivatives % NM NM Loans, Leases and Letters of Credit % % Repurchase agreements % NM NM Highly Lev. Fin. Commitments $ 3.5 $ 4.6 5% % Equities (excludes ARS at AFS) $ 12.9 $ % NM NM SIVs $ 16.2 $ % % Monolines $ 1.3 $ 1.7 0% NM NM Consumer and Other (6) $ $ 13.2 NM NM NM Total $ $ (1) Ring-Fenced Assets refers to the assets covered under the loss-sharing agreement with the U.S. government. (2) AFS accounts for approximately 1/3 of the total. (3) Includes CRE ($2.2B), Municipals ($1.5B) and ABS ($1.6B). (4) HFS accounts for approximately $1.1B of the total. (5) Includes $3.2B of Corporates and $0.7 of CRE. (6) Includes $4.8B of Small Business Banking & Finance loans. Note: Totals may not sum due to rounding. 31

33 Citi Holdings SAP Assets Commercial Real Estate: $28.0B Alt-A: $9.2B (1) HFI/HFS Loans 62% 9% 12% AFS/HTM Securities 3% MTM 06 Vintage 70% 27% 04 Vintage 05 Vintage 17% Equity Equities: $12.9B SIVs: $16.2B Hedge Funds Private Equity 42% 9% 17% 32% CRE Other Financial Institutions Debt 37% Other (1) Composed of $9.0B at AFS and $0.2B at Trading. (2) No direct exposure to U.S. subprime assets and approximately $21 million of indirect exposure to subprime assets through CDOs. Structured Products (2) : 62% 21% MBS 15% Student t Loans Credit Cards 9% 7% CMBS 5%6% CBOs/CLOs /CDOs 32

34 Citicorp S&B Revenue Detail ($B) Fixed Income Markets Equity Markets Q'09 2Q'09 3Q'09 1Q'09 2Q'09 3Q'09 Ex-Credit Value Adjustment (1) Ex-Credit Value Adjustment (1) Q'09 2Q'09 3Q'09 1Q'09 2Q'09 3Q'09 (1) Non-GAAP financial measure. For a reconciliation of these measures to the most directly comparable GAAP measure, please see slide

35 Citigroup Credit Value Adjustment ($MM) Derivatives (1) Citi Debt at Fair Value CVA Balance P&L Impact CVA Balance P&L Impact Citicorp 2,908 1,488 (1,420) 697 (3,150) (2,453) 2Q'09 3Q'09 P&L Impact Holdings Citicorp 3,922 2,968 (955) 2Q'09 3Q'09 P&L Impact Holdings 381 (583) 266 (425) (115) Q'09 3Q'09 P&L Impact Payables Receivables (64) 2Q'09 3Q'09 P&L Impact (1) Credit value adjustment on the fair value of derivative instruments with non-monoline counterparties. 34

36 Citicorp S&B Revenue Marks ($MM) 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 MTM on sub-prime related direct exposures Monoline Credit Value Adjustment (CVA) MTM on highly lev d finance commitments MTM on Alt-A mortgages (1) (216) (48) (221) (252) Mark to market on ARS (2) MTM on CRE (18) (65) (32) 20 MTM on SIVs CVA on Citi Liabilities at Fair Value Option 1,279 (228) 1,526 1, (1,452) (955) Derivatives CVA (3) (165) 48 1,178 (4,353) 2, (722) PE & Equity Inv. (64) (6) (50) (257) (62) Gross Revenue Marks 816 (299) 2,564 (2,891) 2,712 (776) (1,436) Non-credit Accretion (4) Net Revenue Marks 816 (299) 2,564 (2,891) 2,712 (776) (1,436) (1) Net of hedges. (2) Excludes write-downs of $306 million in 3Q 08, $87 million in 4Q 08, $3 million in 1Q 09, $3 million in 2Q 09 and $16.3 million gain in 3Q 09 arising from the ARS legal settlements. (3) Includes Private Bank. (4) Booked at the net interest revenue line. Note: Excludes Discontinued Operations. 35

37 Citi Holdings Revenue Marks ($MM) 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 MTM on sub-prime related direct exposures (1) (5,912) (3,395) (394) (4,582) (2,296) 613 1,967 Monoline Credit Value Adjustment (CVA) (1,491) (2,428) (920) (897) (1,090) 157 (61) MTM on highly lev d finance commitments (2) (3,078) (428) (792) (594) (247) (237) (24) MTM on Alt-A mortgages (3, 4) (799) (277) (932) (1,067) (503) (390) (196) Mark to market on ARS (4) (1,457) 197 (166) (306) (23) MTM on CRE (5, 6) (555) (480) (649) (1,214) (387) (354) (594) MTM on SIVs (212) 11 (2,004) (1,064) (47) 50 (40) CVA on Citi Liabilities at Fair Value Option (18) (156) (64) Derivatives CVA (102) 52 (64) (945) PE & Equity Inv. (7) (129) 183 (430) (1,820) (1,117) (37) (20) Gross Revenue Marks (13,735) (6,565) (6,351) (12,256) (5,414) 451 1,011 Non-credit Accretion (8) Net Revenue Marks (13,735) (6,565) (6,351) (12,066) (4,873) 952 1,513 Note: all marks booked in SAP unless otherwise stated. Excludes Discontinued Operations. (1) Net of impact from hedges against direct subprime ABS CDO super senior positions. (2) Net of underwriting fees. (3) Net of hedges. (4) Excludes write-downs of $306 million in 3Q 08, $87 million in 4Q 08, $3 million in 1Q 09, $3 million in 2Q 09 and $6.3 million gain in 3Q 09 arising from the ARS legal settlements. (5) Excludes positions in SIVs. (6) 3Q 09: $(7) million in BAM, $(587) million booked in SAP. (7) 3Q 09: $(28) million booked in BAM, $8 million in SAP. (8) Booked at the net interest revenue line. 36

38 Corporate / Other ($MM) 3Q 09 3Q 08 % Revenues $671 $(466) NM Net Income $102 $(187) NM Balance Sheet ($B): Assets $258 $117 NM Deposits % Revenues primarily driven by $1.4B gain from exchange offers, partially offset by the interest cost of TruPS and hedging activities Cash and deposits with banks represent 67% of Corp/Other assets Deposits remain relatively flat 37

39 Summary of Press Release Disclosed Items $MM 3Q 08 3Q 09 Pre-tax After-tax Pre-tax After-tax North America (6) (1) (4) (1) EMEA 5 (1) 3 (1) Latin America (78) (1) (50) (1) Asia (6) (1) (4) (1) Regional Consumer Banking $(85) (1) $(55) (1) North America (401) (1,2) (260) (1,2) EMEA (12) (1) (7) (1) Latin America (16) (1) (16) (1) Asia (21) (1) (13) (1) Securities and Banking $(450) (1,2) $(296) (1,2) North America (1) (1) (1) (1) EMEA Latin America Asia (1) (1) (1) (1) Transaction Services $(2) (1) $(2) (1) Brokerage and Asset Management $(155) (1,2,3) $(103) (1,2,3) $320 (5) $159 (5) Local Consumer Lending $(88) (1) $(55) (1) Special Asset Pool $(1) (1) Corporate / Other $(42) (1) $(27) (1) $1,382 (6) $851 (6) Discontinued Operations $330 (4) $492 (4) (1) Repositioning charges of $(458) million pre-tax, $(288) million after-tax. tax (2) Write-downs and expenses related to the Auction Rate Securities settlement of $(712) million pre-tax, $(472) million after-tax. (3) Gain on sale of CitiStreet of $347 million pre-tax, $222 million after-tax. (4) FX hedge and tax benefit related to the German retail banking operations sale. (5) Gain on sale of Managed Futures. (6) Gain on debt extinguishment associated with the exchange offers. Note: Totals may not sum due to rounding. 38

40 Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Managed-basis (Managed) presentations detail certain non-gaap financial measures. Managed presentations (applicable only to North American credit card operations, as securitizations are not done in any other regions) include results from both the on-balance sheet loans and off balance sheet loans, and exclude the impact of card securitization activity. Managed presentations assume that securitized loans have not been sold and present the results of the securitized loans in the same manner as the Citigroup's owned loans. $MM 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Managed Citigroup Revenues as Reported $ 26,686 $ 26,418 $ 23,624 $ 23,029 $ 29,134 $ 21,841 $ 21,683 Less: Net impact from Card Securitizations Citicorp 964 1,247 1,892 1,602 1,484 1,644 1,800 Less: Net impact from Card Securitizations Citi Holdings , , Less: Net Revenue Marks Citicorp 816 (299) 2,564 (2,891) 2,712 (776) (1,436) Less: Net Revenue Marks Citi Holdings (13,735) (6,565) (6,351) (12,066) (4,873) 952 1,513 Add: Smith Barney Gain on Sale 11,078 Add: Gain from Exchange Offers 1,382 GAAP Citigroup Revenues $ 12,157 $ 17,538 $ 16,258 $ 5,646 $ 24,521 $ 29,969 $ 20,390 $MM 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Managed Citicorp Revenues as Reported $ 17,257 $ 18,312 $ 15,348 $ 15,153 $ 19,341 $ 17,380 $ 16,261 Less: Net impact from Card Securitizations Citicorp 964 1,247 1,892 1,602 1,484 1,644 1,800 Less: Net Revenue Marks Citicorp 816 (299) 2,564 (2,891) 2,712 (776) (1,436) GAAP Citicorp Revenues $ 17,109 $ 16,766 $ 16,020 $ 10,660 $ 20,569 $ 14,960 $ 13,025 $MM 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Managed Citi Holdings Revenues as Reported $ 9,863 $ 9,413 $ 8,742 $ 7,927 $ 9,293 $ 5,202 $ 6,133 Less: Net impact from Card Securitizations Citi Holdings , , Less: Net Revenue Marks Citi Holdings (13,735) (6,565) (6,351) (12,066) (4,873) 952 1,513 Add: Smith Barney Gain on Sale 11,078 GAAP Citi Holdings Revenues $ (4,518) $ 2,079 $ 704 $ (4,963) $ 3,452 $ 15,750 $ 6,694 $MM 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Managed Citicorp N.A. RCB Revenues as Reported $ 3,298 $ 3,358 $ 3,364 $ 3,449 $ 3,573 $ 3,405 $ 3,554 Less: Net impact from Card Securitizations Citicorp N.A. RCB 964 1,247 1,892 1,602 1,484 1,644 1,800 GAAP Citicorp N.A. RCB Revenues $ 2,334 $ 2,111 $ 1,472 $ 1,847 $ 2,089 $ 1,761 $ 1,754 39

41 Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP FINANCIAL MEASURES $MM 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Citicorp S&B Revenues Ex CVA $ 6,604 $ 7,586 $ 4,641 $ 5,071 $ 9,765 $ 7,727 $ 6,570 Add: CVA 1,114 (180) 2,704 (2,605) 2,659 (855) (1,677) GAAP Citicorp S&B Revenues $ 7,718 $ 7,406 $ 7,345 $ 2,466 $ 12,424 $ 6,872 $ 4,893 $MM 1Q'09 2Q'09 3Q'09 Citicorp S&B Fixed Income Markets Revenues Ex CVA $ 7,678 $ 5,702 $ 4,705 Add: CVA 2,543 (129) (760) GAAP Citicorp S&B Fixed Income Markets Revenues Ex CVA $ 10,221 $ 5,573 $ 3,945 $MM 1Q'09 2Q'09 3Q'09 Citicorp S&B Equity Markets Revenues Ex CVA $ 1,524 $ 1,792 $ 1,324 Add: CVA 80 (691) (878) GAAP Citicorp S&B Equity Markets Revenues Ex CVA $ 1,604 $ 1,101 $ 446 $MM 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Managed Citi Holdings LCL Revenues as Reported $ 8,146 $ 6,993 $ 7,119 $ 6,121 $ 7,421 $ 5,412 $ 5,599 Less: Net impact from Card Securitizations Citi Holdings LCL , , GAAP Citi Holdings LCL Revenues $ 7,500 $ 6,224 $ 5,432 $ 5,297 $ 6,453 $ 3,930 $ 4,647 $MM 3Q'09 Citigroup Consumer Managed Net Credit Losses $ 9,441 Less: Net impact from Card Securitizations Citicorp 1,876 Less: Net impact from Card Securitizations Citi Holdings 1,137 Citigroup Consumer Net Credit Losses $ 6,428 $Bn 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Citicorp RCB N.A. Average Managed Loans $ 86.4 $ 87.1 $ 87.6 $ 88.6 $ 88.4 $ 87.6 $ 88.6 Less: Net impact from Card Securitizations Citicorp RCB N.A. Average Loans $ 17.6 $ 15.9 $ 16.3 $ 18.4 $ 20.9 $ 18.9 $

42 Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP FINANCIAL MEASURES $Bn 2Q'09 3Q'09 Citicorp N.A. Ci ti Branded Cards Average Managed Loans $ 80.4 $ 81.2 Less: Net impact from Ca rd Securitizations Citicorp N.A. Ci ti Branded Cards Average Loans $ 11.7 $ 11.3 $MM 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Citicorp N.A. Ci ti Branded Cards Managed 90 DPD $ 1,379 $ 1,423 $ 1,451 $ 1,806 $ 2,091 $ 2,146 $ 1,971 Less: Net impact from Ca rd Securitizations 1,205 1,252 1,333 1,543 1,805 1,898 1,730 Citicorp N.A. Ci ti Branded Cards 90 DPD $ 174 $ 171 $ 118 $ 263 $ 286 $ 248 $ 241 $MM 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Citicorp N.A. Ci ti Branded Cards Managed Net Credit Losses $ 1,001 $ 1,152 $ 1,232 $ 1,386 $ 1,692 $ 2,056 $ 2,077 Less: Net impact from Ca rd Securitizations 881 1,043 1,123 1,254 1,490 1,837 1,876 Citicorp N.A. Ci ti Branded Cards Net Credit Losses $ 120 $ 109 $ 109 $ 132 $ 202 $ 219 $ 201 $Bn 2Q'09 3Q'09 Citi Holdings N.A. Retail Partners Cards Average Managed Loans $ 60.9 $ 59.8 Less: Net impact from Ca rd Securitizations Citi Holdings N.A. Retail Partners Cards Average Loans $ 23.6 $ 23.7 $MM 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Citi Holdings N.A. Retail Partners Cards Managed 90 DPD $ 1,556 $ 1,609 $ 1,725 $ 2,130 $ 2,289 $ 2,131 $ 2,104 Less: Net impact from Ca rd Securitizations ,113 1,333 1,214 1,219 Citi Holdings N.A. Retail Partners Cards 90 DPD $ 636 $ 698 $ 810 $ 1,017 $ 956 $ 917 $ 885 $MM 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Citi Holdings N.A. Retail Partners Cards Managed Net Credit Loss $ 1,194 $ 1,290 $ 1,458 $ 1,622 $ 1,958 $ 2,150 $ 2,004 Less: Net impact from Ca rd Securitizations ,057 1,278 1,137 Citi Holdings N.A. Retail Partners Cards Net Credit Losses $ 483 $ 565 $ 646 $ 760 $ 901 $ 872 $

43 Certain statements in this document are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of These statements are based on management s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in Citigroup s filings with the U.S. Securities and Exchange Commission. 42