Citi Technology Clients Summit John Gerspach Chief Financial Officer May 16, 2012
Uniquely Positioned for the Future Growth in every core business in 1Q 1212 Difficult to replicate Citi s global footprint Unrivaled depth and breadth across Emerging Markets Business model well suited to macro trends and proposed regulatory changes Strong and growing capital base with exceptional liquidity 1
Citigroup Results ($B) Revenues (ex-cva / DVA) (1,2) Expenses Citicorp + Corp/Other Holdings $93.1 $87.1 $76.5 25.4 12.3 6.2 $47.8 $47.4 $50.9 +1% 0% 67.7 74.7 70.4 $20.0 $20.2 17 1.7 08 0.8 18.3 19.4 2009 2010 2011 1Q'11 1Q'12 $12.3 $12.3 2009 2010 2011 1Q'11 1Q'12 Credit Provisions (1,3) Net Income (ex-cva / DVA) (2) $51.8 $26.0 $12.8-5% $10.9 $9.9 8% $3.2 $3.4 $3.2 $3.0 $(1.3) 2009 2010 2011 1Q'11 11 1Q'12 12 2009 2010 2011 1Q'11 1Q'12 Note: (1) Periods prior to 1Q 10 are on a managed basis. For additional information, as well as CVA / DVA for each of the periods presented, see Citigroup's Historical and First Quarter 2012 Quarterly Financial Data Supplements furnished as exhibits to Form 8-K filed with the U.S. Securities and Exchange Commission on March 26, 2012 and April 16, 2012. (2) 1Q 12 excludes pre-tax gains on the sale of Citi s remaining minority interest in the Housing Development Finance Corporation Ltd. (HDFC) and the minority interest Shanghai Pudong Development Bank (SPDB) of $1.1B and $542MM, respectively, as well as a pre-tax impairment charge related to its minority interest in Akbank T.A.S. (Akbank) of $1.2B, each recorded in Corporate / Other. Total after-tax impact was $308MM. 2 (3) Credit Provisions: Net loan loss reserve builds (releases), policyholder benefits and claims, provisions for unfunded lending commitments and net credit losses.
Citigroup Strategic Progress ($B) Citicorp Revenues (ex-cva / DVA) (1) Citi Holdings Revenues (ex-cva / DVA) GCB CTS S&B $78.2 $73.0 $25.4 $69.5 29.1 23.5 19.7 9.8 10.1 10.6 +6% 39.3 39.4 39.2 $18.4 $19.4 63 6.3 67 6.7 2.6 2.7 9.6 10.0 2009 2010 2011 1Q'11 1Q'12 Citicorp Loans $12.3 $6.2-53% $1.7 $0.8 2009 2010 2011 1Q'11 1Q'12 Citi Holdings Assets $425 $424 +21% $457 $514 $573 $458-64% $295 $209 1Q'09 1Q'10 10 1Q'11 11 1Q'12 12 1Q'09 1Q'10 10 1Q'11 11 1Q'12 12 Note: (1) Periods prior to 1Q 10 are on a managed basis. For additional information, as well as CVA / DVA for each of the periods presented, see Citigroup's Historical and First Quarter 2012 Quarterly Financial Data Supplements furnished as exhibits to Form 8-K filed with the U.S. Securities and Exchange Commission on March 26, 2012 and April 16, 2012. 3
Global Trends and Business Drivers Deleveraging of Developed Globalization World Rise Rise of of Emerging Cities Markets & Urbanization Deleveraging of Developed World Digitization Technology Financial Regulation Deleveraging of developed economies has only just begun Expect lower GDP growth and consumer demand for foreseeable future U.S. positioned relatively well versus Western Europe EM expected to enjoy sustained higher GDP growth Growth in EM consumer demand Growing trade and capital flows, particularly l intra-em Rapid population growth in EM cities Significant investment and infrastructure needs Driving changes in consumer behavior and expectations Improving efficiency Likely to create new competitors / partners / revenue streams Regulatory reform likely to have meaningful impact on banks and customers Final form still unclear for most rules Likely differences in implementation globally 4
Rise of Emerging Markets Driving Global Growth 2011 2016E CAGR Emerging Markets are Driving GDP Growth 5.7% World GDP 3.4% 2.9% 19% 1.9% 0.5% Developed Developed Total Euro Area U.S. Emerging Total Source: Citi Investment Research & Analysis 5
Rise of Emerging Markets Driving Global Growth EM Trade as a % of Total World Trade 2010 2020 $37 T $83 T DM-DM 40% EM-EM 15% DM-DM 26% EM-EM 25% EM-DM 45% EM-DM 49% Emerging Markets 60% of Trade 10.7% CAGR Emerging Markets 74% of trade Source: Citi Investment Research & Analysis 6
Digitization Global Users (B) Mobile vs. Bank Account Penetration Mobile Bank Account 85% 91% 92% 91% 95% 83% 6.9 69% 4.8 43% 56% 48% 53% 42% 48% 1.8 20% Population Mobile Bank Accounts U.S. U.K. Russia Brazil India China Africa Developed Emerging There are ~5B cell phone users worldwide but only ~2B bank accounts Source: Yankee Group, Financial Access Initiative 7
Major Upcoming Regulatory Changes Volcker Rule Final form and scale still unknown Many potential, unintended consequences in eliminating banks from proprietary trading Key issue is the impact on client-facing activities Likely to reduce liquidity and increase costs to the market Basel III U.S. rules still unknown and potential for uneven implementation globally Regardless of final form, capital requirements will increase Good for safety and soundness, but comes at a cost to banks and the macro economy Back stop liquidity facilities and OTC derivatives will likely become much more expensive, and credit will be limited for all but the highest quality borrowers 8
Citicorp Model is Well Positioned Globalization Rise of Emerging Markets Rise of Cities Accelerating Urbanization Deleveraging of Developed Digitization World Technology Regulatory & Capital Environment Note: (1) Last twelve months through 1Q 12. Citi has unparalleled exposure to faster-growing emerging markets Difficult for peers to replicate Citi s global presence, particularly with limited ability to pursue significant M&A Uniquely positioned to facilitate EM-EM trade and capital flows 45% of revenues and 55% of income from continuing operations generated in EM (1) Citi is focused on retail banking in the world s 150 largest cities Leveraging our scale globally through a common platform Facilitating capital flows where investment is needed Actively developing mobile payment systems and technology Partnering with important non-financial firms, e.g. Google Wallet Citi is less exposed to consumer regulatory changes in U.S. Completed wind-down of our proprietary equity trading business Basel III friendly business model: Minimal impact on Transaction Services / Consumer Banking Institutional business focused on flow facilitation 9
Citi is Uniquely Global Physical Presence in over 100 Countries and Client Service in ~160 Countries North America 2 CTS 2 Trading & Sales 2 Corporate Bank 1 Consumer Bank 2 Private Bank Western Europe 18 CTS 13 Trading & Sales 16 Corporate Bank - Consumer Bank 6 Private Bank World 96 CTS 86 Trading & Sales 89 Corporate Bank 43 Consumer Bank 23 Private Bank Asia 18 CTS LATAM 23 CTS 22 Trading & Sales 22 Corporate Bank 15 Consumer Bank 2 Private Bank 17 Trading & Sales CEEMEA 16 Corporate Bank 35 CTS 17 Consumer Bank 34 Trading & Sales 8 Private Bank 33 Corporate Bank 10 Consumer Bank 5 Private Bank Local Infrastructure Serving Clients / No Physical Infrastructure 10
Citicorp Diverse Revenue Base LTM Revenues ex-cva / DVA (1) Revenues by Region Revenues by Business Asia Emerging 17% Asia Developed 4% North America Transaction Services 15% Global Consumer Banking 41% LATAM 20% 28% 56% CEEMEA 7% 10% Western Europe Securities & Banking Total: $70.5B Note: Totals may not sum due to rounding. LTM: Last twelve months through 1Q 12. (1) For CVA / DVA for each of the periods presented, see Citigroup's Historical and First Quarter 2012 Quarterly Financial Data Supplements furnished as exhibits to Form 8-K filed with the U.S. Securities and Exchange Commission on March 26, 2012 and April 16, 2012. 11
Citicorp Diverse Earnings Base ($B) LTM (1) Earnings Before Taxes (ex-llr & CVA / DVA) $21.0 Global Consumer Banking Transaction Services Securities & Banking 61% $19.0 $18.0 $17.4 54% 51% 48% $16.0 $16.2 $16.4 $15.6 40% 37% 33% 26% $17.6 27% 25% 27% 28% 29% 32% 31% 30% 31% 28% 73% 39% 14% 18% 21% 23% 29% 33% 36% 43% 45% 1Q'10 2Q'10 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 Note: Totals may not sum due to rounding. (1) Last twelve months to each period. For the LLR and CVA / DVA for each of the periods presented, see Citigroup s Historical and First Quarter 2012 Quarterly Financial Data Supplements furnished as exhibits to Form 8-K filed with the U.S. Securities and Exchange Commission on March 26, 2012 and April 16, 2012. 12
Executing in a Challenging Environment Remaining vigilant in risk management to protect the franchise Managing legacy U.S. mortgage portfolio in Citi Holdings to mitigate risk Containing exposure to Western Europe while continuing to support our important clients Growing EM loan portfolio in a disciplined manner Maintaining a strong and highly liquid balance sheet Building tangible book value and capital 13
Containing Western European Exposure As of March 31, 2012 ($B) Net Current Funded Credit Exposure Financial Corporations Institutions Sovereigns $3.5 02 0.2 0.4 0.6 1.0 $1.7 0.1 12 1.2 1.6 $0.8 02 0.2 0.5 Spain Greece Italy Ireland Portugal Note: Totals may not sum due to rounding. Net trading and AFS exposure represents an additional $3.1B of current funded exposure (including $1.8B in Italy, $1.2B in Spain and $0.2B in Portugal). In addition, Citi had approximately $7.3 billion of exposure in the GIIPS, mostly locally-funded accrual loans to retail customers and small businesses (including $3.0B of consumer banking exposure in Spain and $1.5B in Greece), as well as securitized retail assets that are mostly held-tomaturity. For additional information on Citi s net current funded credit, net trading and AFS exposures, as well as other exposures in these countries and France, see Citigroup s First Quarter 2012 Form 10-Q filed with the U.S. Securities and Exchange Commission on May 4, 2012. 14
Liquidity Resources ($B) On-Balance Sheet Aggregate Liquidity Resources (1) $427 110 $447 $441 102 111 $401 $405 107 107 $421 93 223 249 233 194 200 236 95 96 96 100 98 92 4Q'10 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 Non-Bank (2) Significant Bank Entities Other Entities (3) Note: Totals may not sum due to rounding. These totals do not include foreign central bank borrowings, or Citigroup s borrowing capacity at the U.S. Federal Reserve Bank discount window and from various Federal Home Loan Banks (FHLB), which h is maintained i by pledged d collateral l to all such banks. (1) Aggregate liquidity resources reflect balances of unencumbered cash at major central banks as well as unencumbered highly liquid securities. (2) Non-Bank includes the parent holding company (Citigroup Inc.) and the broker-dealer (CGMHI). (3) Other Entities include Banamex and other bank entities. 15
Basel III Liquidity Coverage Ratio (LCR) Citi s Basel III LCR is among the highest of all banks more than 25% above the estimated proposed minimum ratio of 100%. Current Basel III LCR: Stock of High Quality (Unencumbered) Liquid Assets Net Cash Outflows Over a 30-day Time Period > 100% >125% Citi (1) 100% 90% Basel III LCR 2Q'11 Minimum Industry Requirement Average (2) The Basel III Liquidity Coverage Ratio is designed to ensure banks maintain an adequate level of unencumbered cash and highly liquid securities that can be converted to cash to meet liquidity needs Meeting these requirements could have significant balance sheet repositioning costs for those banks not in compliance Citi believes it will be able to avoid any such repositioning costs given its current estimated Basel III LCR ratio Note: (1) Estimated. (2) June 30, 2011 results of Basel III study for all participating international banks. 16
Key Capital Metrics Tier 1 Capital Total Capital Tier 1 Common TBV/Share (1) 15.6% 16.1% 16.6% 17.0% 17.2% 16.9% 17.0% 14.9% 12.0% 12.5% 12.9% 13.3% 13.6% 13.5% 13.5% 11.3% 11.3% 11.6% 11.7% 11.8% 10.3% 10.8% 9.1% 9.7% 17.6% 14.3% 12.5% $40.90 $41.86 $44.42 $44.55 $46.87 $48.75 $49.50 $49.74 $50.90 1Q'10 2Q'10 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 Risk-Weighted Assets ($B) $1,064 $1,025 $1,004 $978 $992 $993 $984 $973 $974 Note: (1) Tangible book value per share is a non-gaap financial measure. For a reconciliation of this metric to the most directly comparable GAAP measure, please refer to Slide 24. 17
Credit Ratings Fitch (1) S&P (2) Moody's Citigroup Inc. Senior Debt A A- A3 Commercial Paper F1 A-2 A2 P-2 P2 Citibank, N.A. Long-Term Obligations A A A1 Short-Term Obligations F1 A-1 P-1 In February 2012, Moody s announced a review of 17 banks with global capital markets operations Potential downgrade of Citigroup Inc. to Baa2/P-2 and Citibank, N.A. to A3/P-2 Moody s action is based on their industry-wide re-evaluation of risks surrounding the investment banking operating model Inherently volatile earnings and historically high leverage Risk management challenges Increasing regulatory burden Moody s approach is backward looking and does not provide adequate credit to the strength and diversity of Citi s franchise, nor the substantial improvements made in our risk infrastructure, capital base, and liquidity levels Note: (1) Stable outlook. (2) Negative outlook. 18
Evolving Counterparty Assessment In a changing and increasingly complex landscape, clients look beyond ratings to measure counterparty performance. 1990s Simple, Local Banks Today Global, complex multinationals Two Credit Ratings Financial Metrics: Equity base Regulatory capital Liquidity Market Metrics: Bond spreads CDS spreads Share price Loan loss reserves Funding profile Credit ratings Business Metrics: Earnings stability Geographic diversification Risk concentrations Business strategy Macroeconomic environment As a result, bank evaluation was more one-dimensional and historical Bank evaluations need to be based on leading indicators 19
Counterparty Comparisons (2) Domestic Peers International ti Peers Peer Comparison (1) A B A B C D Financial Metrics Tier 1 Capital (%) 14.3 12.6 13.4 11.9 13.4 12.7 18.8 Tier 1 Common (%) 12.5 10.4 10.8 10.4 10.0 10.9 16.7 Cash & AFS / Assets (%) 24.7 23.8 20.5 7.3 8.8 11.0 10.4 Market Metrics Bank Ratings (S&P / Moody s / Fitch) A/A1/A A+/Aa1/AA- A/A2/A A+/Aa2/AA A+/Aa3/A+ A+/Aa3/A A/Aa3/A YTD Stock Price (%) (3) 11.6 11.2 35.8 12.9 5.9 15.2 2.5 5 YR CDS (bps) (3) 255 140 295 135 198 220 187 Δ 5 YR CDS Year-to-Date (bps) (3) (40) (13) (124) (14) (8) 11 6 Business Metrics Deposits / Assets (%) 46.66 48.6 47.77 53.9 27.8 24.1 25.1 Int l Deposits / Assets (%) 28.6 11.4 3.3 NA NA NA NA LLR / Gross Loans (%) 4.5 3.6 3.5 1.7 0.9 0.7 0.3 Relative Strength th of Global l Platform Note: (1) Based on 1Q 12 or most recently available. Qualitative assessments based on internal perception. (2) As of 3/31/12. (3) As of market close 5/11/12. Source: SNL Financial and company filings High Low 20
Conclusions Well positioned for sustained growth in core businesses Unrivalled presence in Emerging Markets Significant liquidity resources to confront macro and regulatory changes Strong and growing capital base 21
Certain statements in this document 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. Actual results may differ materially from those included in these statements due to a variety of factors, including the precautionary statements included in this presentation 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 Form 10-K. 22
Citi Technology Clients Summit John Gerspach Chief Financial Officer May 16, 2012
Non-GAAP Financial Measures Reconciliations ($ millions, except per share amounts) 1Q'10 2Q'10 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 Citigroup's Total Stockholders' Equity $151,421 $154,806 $162,913 $163,468 $171,037 $176,364 $177,372 $177,806 $181,820 Less: Preferred Stock 312 312 312 312 312 312 312 312 312 Common Stockholders' Equity 151,109 154,494 162,601 163,156 170,725 176,052 177,060 177,494 181,508 Less: Goodwill 25,662 25,201 25,797 26,152 26,339 26,621 25,496 25,413 25,810 Intangible Assets (other than Mortgage Servicing Rights) 8,277 7,868 7,705 7,504 7,280 7,136 6,800 6,600 6,413 Goodwill and Intangible Assets - recorded as Assets Held for Sale / Assets of Discont. Operations Held for Sale 45 66 - - 165 - - - - Net Deferred Tax Assets Related to Goodwill and Intangible Assets 65 62 59 56 53 50 47 44 41 Tangible Common Equity (TCE) $117,060 $121,297 $129,040 $129,444 $136,888 $142,245 $144,717 $145,437 $149,244 Common Shares Outstanding at Quarter-end 2,862 2,898 2,905 2,906 2,921 2,918 2,924 2,924 2,932 Tangible Book Value Per Share $40.90 $41.86 $44.42 $44.55 $46.87 $48.75 $49.50 $49.74 $50.90 (Tangible Common Equity / Common Shares Outstanding) 24