CITI S OPERATIONS IN SINGAPORE POSTS STRONG PROFITS FOR FINANCIAL YEAR 2008

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1 SUMMARY STATEMENT Citigroup Inc. April 13, 2009 CITI S OPERATIONS IN SINGAPORE POSTS STRONG PROFITS FOR FINANCIAL YEAR 2008 o Citibank Singapore Limited reported net profit of S$703.6 million o Citibank N.A. Singapore Branch reported net profit of S$252.6 million o Citicorp Investment Bank (Singapore) Limited reported net profit of S$248.1 million Singapore: Citi today reported strong profits in Singapore for the financial year ended 31 December Citibank Singapore Limited reported record net profit of S$703.6 million. Citibank N.A. Singapore Branch and Citicorp Investment Bank (Singapore) Limited reported net profit of S$252.6 million and S$248.1 million respectively. In the past three years, Citi has only announced results for the locally incorporated Citibank Singapore Limited (CSL). This is the first time that Citi is also announcing results for Citibank N.A. Singapore Branch and Citicorp Investment Bank (Singapore) Limited. Citibank N.A. Singapore Branch is a fully licensed bank in Singapore comprising Citi s corporate banking, commercial banking, investment banking, transaction services, private banking and trading businesses. Citicorp Investment Bank is a merchant bank, under which Citi books its investment banking and capital markets deals, including debt origination and deal underwriting. Key Financial Highlights for Citibank Singapore Limited The locally incorporated consumer banking arm CSL reported its highest ever profits of S$703.6 million on revenues of S$1.5 billion, despite a challenging market environment in Key highlights: Net profit rose 3% to S$703.6 million, from S$683.5 million in 2007, reflecting the steady growth momentum across all product lines and customer segments. Profit before tax was S$820.1 million, up from S$806.2 million in

2 Revenue increased 6.4% to S$1.5 billion, from S$1.4 billion in Net interest income grew 17.2% from S$688.2 million in 2007 to S$806.6 million, boosted by higher interest spreads due to lower funding costs. Fee and commission income was S$354.4 million, down 23.3% from 2007 s S$462 million, reflecting the industry-wide pressures felt by the wealth management business last year. Dealing profit and other income was S$342.5 million, up 30% from 2007 s S$263.5 million. Total operating expenses rose 13.2% to S$646.7 million, from S$571.3 million in 2007, due in part, to the increase in rentals and property management as a result of CSL s continued expansion of its distribution network. Customer loans amounted to S$9.6 billion. NPL ratio was 1.0%. CSL is a wholly-owned subsidiary of Citigroup, Inc. with a paid-up capital of S$1.5 billion. As of 31 December 2008, CSL s total equity was S$3.7 billion, with a total capital adequacy ratio (CAR) of 14.76% and a Tier-1 CAR of 14.61%, one of the highest amongst Singapore banks. Key Financial Highlights for Citibank N.A. Singapore Branch Net profit was S$252.6 million, down 25% from 2007's S$336.7 million. Profit before tax was down 21.8% from S$391.2 million to S$305.9 million in The results largely reflect the challenging wider economic environment, however the dip in profits is balanced by the higher profits in Citicorp Investment Bank (Singapore) Limited. Revenue was S$640.5 million, down by 6.6% from S$685.6 million in Net interest income was down by 21.1% from S$206.2 million in 2007 to S$162.7 million in Fee and commission income rose 91.1% to S$111.8 million, from S$58.5 million in Dealing profit and other income accounted for S$366 million, a 13.1% drop from 2007 s S$420.9 million. 2

3 Total operating expenses reduced 8.4% to S$271.5 million, from S$296.4 million. Customer loans amounted to S$9.13 billion, with an NPL ratio of 3%. Key Financial Highlights for Citicorp Investment Bank (Singapore) Limited Net profit grew by 18.4% from S$209.5 million in 2007 to S$248.1 million in Profit before tax was S$284.3 million, up 18.4% from 2007 s S$240.1 million. Revenue was S$684.9 million, up by 3.2% from S$664 million in Net interest income increased 167.4% from S$86.5 million in 2007 to S$231.2 million in Fee and commission income rose 14% from S$79 million in 2007 to S$90 million in Dealing profit and other income and other income accounted for S$363.7 million, down by 27.1% from 2007 s S$498.5 million. Total operating expenses amounted to S$400.3 million, down by 5.6% from S$423.9 million in Key Growth Drivers In 2008, Citi maintained stable and steady growth in its operations in Singapore. Citi s diversified business model benefited the Singapore franchise as a whole. In relation to fee and commission income for instance, the market pressure faced by CSL s wealth management business was balanced by the strong showing in areas such as corporate advisory, transaction services, custody and deal underwriting. Citibank Singapore Limited Our consumer banking business continued to register profitability across customer segments and product lines such as deposits, and secured and unsecured loans. Our unsecured lending portfolio, comprising cards and Ready Credit, grew by 16%, whilst deposits and treasury activities grew by approximately 25%. Two business lines that also continued to see strong growth were our mortgage and bancassurance businesses. In 2008, the consumer bank continued to extend its distribution as part of a wider expansion strategy into the heartlands. Four branches were opened last year, including the first Citigold Select Centre at Paragon, the latest heartland branch 3

4 at Tampines Plaza and two high-tech branches at City Hall and Boon Lay SMRT stations. To-date, Citibank has 20 branches, 150 proprietary Citibank ATMs, some 85 ATM locations under the ATM 5 shared network and more than 550 Citibank-AXS terminals. This is an increase from 2007 s 16 branches, 125 Citibank ATMs and 440 Citibank-AXS terminals. The consumer bank saw a stable 20% rise in total new-to-bank customers across product lines and customer segments, a similar trend to New-to-bank customers for the Citibanking segment in particular grew by more than 40%, as a result of our expanded distribution via the SMRT network and our Citibank At Work programme. The International Personal Banking (IPB) business is an important contributor to the overall consumer business. IPB is a dedicated arm within CSL that offers personalized offshore banking and wealth management services to affluent individuals in the region. In 2008, IPB s Citigold new-to-bank customers in Singapore grew by 15% over 2007 and deposits grew by 10%. Citibank N.A. Singapore Branch & Citicorp Investment Bank (Singapore) Limited Our transaction services, SME banking and corporate and investment banking businesses also continued to see strong growth. Our global markets business comprising equities, fixed income, commodities and currencies saw 20% growth, whilst our transaction services business grew by 11% boosted by cash management and trade financing. Banking and advisory activities for corporates saw growth of approximately 15%. We remained active in the Singapore capital markets with large visible deals and maintained our position as a top tier advisor to major clients. Most recently, Citi acted as joint underwriter for the S$411 million equity placement cum preferential offering for Ascendas REIT, as well as lead underwriter for DBS's S$4 billion rights issue. Both transactions were completed in February Citi was also the first bank to apply for clearing membership on SGX's securities market last year which allows the bank to offer third party clearing services to broker-dealers, SGX's trading members and their customers. We continued to work closely with CFOs and Treasurers of SMEs and local corporates as well as regional subsidiaries of global MNCs to address ongoing concerns related to cash and liquidity management, FX hedging, as well as risk management and capital financing. Key Centre of Excellence in Asia Singapore continues to be a key centre of excellence for Citi in Asia, and a strategic hub for regional management, marketing, operations and technology expertise. Global and regional hubs located in Singapore perform a wide range of 4

5 functions across the businesses for more than 50 countries. These include credit card transactions processing, funds administration, cash processing, data processing and shared transaction services. Additionally, Singapore is the South East Asia Pacific headquarters for Citi, the Asia Pacific hub for its Global Consumer Group and the international operations hub for its Global Wealth Management business. Citi provides employment for more than 8,000 people in Singapore. About Citi #### Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through its two operating units, Citicorp and Citi Holdings, 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, and wealth management. Additional information may be found at or For further information, please contact: Media Contacts Adam Abdur Rahman Caren Lee Kelvin Wong +(65) (65) (65) (65) (65) (65) adam.abdur.rahman@citi.com caren.lee@citi.com kelvin.wong@citi.com 5