Fixed Income Investor Review John Gerspach Chief Financial Officer Eric Aboaf Treasurer October 16, 2009
Third Quarter Earnings Summary Strong balance sheet: Tangible Common Equity (1) 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 i in international ti 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) Tangible Common Equity is a non-gaap measure. Please see page 14 of the 3Q 09 Earnings Release for additional information. 1
Citigroup Reorganization Focus around core historical strengths and clients needs Shift away from businesses overly reliant on wholesale funding and developed markets k t credit creation to t more stable t and d profitable businesses i Positioned against growing segments of financial services Citicorp Global G bank for o businesses and d consumers Unmatched global network and emerging markets footprint Deep and diversified business portfolio across consumer, services, and institutional revenue pools Citi Holdings Non-core o e businesses and a d assets s Includes many attractive franchises Focus on reducing assets, tightly managing risks and optimizing value No legal separation between Citicorp and Citi Holdings 2
Managed Revenue & Expense Trend $29.1 $23.6 $23.0 $21.8 $21.7 $14.0 $14.6 $11.7 $12.0 $11.8 Q308 Q408 Q109 Q209 Q309 (1) (2) Managed Revenues ex Marks Expenses (1) Managed metrics are non-gaap financial measures. Please see slide 39-41 of 3Q 09 Earnings Review for additional information on these metrics. Managed revenues exclude net revenue marks (please see details on slides 35 and 36 of 3Q 09 Earnings Review). 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 exchange offers. (2) 4Q 08 Expense figures exclude the impact from the $9.6 billion goodwill impairment charge, but include the $1.0 billion impact from the write-down of intangible assets related to Nikko Asset Management. 3
Credit Trends Total Net Credit Losses Allowance for Loan Losses 3.4% 4.3% 4.8% 5.6% 5.9% 49 4.9 6.1 7.3 8.4 8.0 24.0 29.6 31.7 35.9 36.4 3Q08 4Q08 1Q09 2Q09 3Q09 3Q08 4Q08 1Q09 2Q09 3Q09 Allowance for Loan Losses as % of Total Loans Allowance for Loan Losses 4
Balance Sheet Discipline Citi Holdings Asset Reductions (20)% Reducing Key Risk Exposures (1) (YoY) Highly leveraged CDOs / finance subprime commitments SIVs PE & equity investments Alt-A Commercial real estate ARS 56% 775 715 662 649 617 (73%) (55%) (41%) (35%) (24%) (17%) 3Q08 4Q08 1Q09 2Q09 3Q09 (1) Risk Exposures shown for Citi Holdings only. 5
Capital Levels $126.8 $126.3 ($ in billions) $90.3 $102.3 $27.4 $40.0 Tier 1 Capital Tier 1 Common Tangible Common Equity 2Q09 Actual 3Q09 Actual Successfully completed exchange offers $40 Shifted capital structure to strong mix of common and preferred Note: Tier 1 Common and Tangible Common Equity are non-gaap measures. Please see pages 14 and 15 of the 3Q 09 Earnings Release for additional information on these metrics. Totals may not sum due to rounding. 6
Capital Ratios 11.9% 11.9% 12.7% 12.7% 10.3% 8.2% 9.1% 3.8% 37% 3.7% 3.1% 3.0% 2.3% 2.2% 4.0% 2.7% 3Q08 4Q08 1Q09 2Q09 3Q09 (2) (1) (1) Tier 1 Capital Ratio Tier 1 Common Ratio Tangible Common Equity (1) Tier 1 Common and Tangible Common Equity are non-gaap measures. Please see pages 14 and 15 of the 3Q 09 Earnings Release for additional information on these metrics. (2) Preliminary. 7
Structural Liquidity Drivers Total Deposits Total Assets 7% 780 774 763 262 259 259 805 274 833 285 2,050 142 206 1,938 200 256 (8)% 1,823 1,849 1,889 191 209 244 239 267 262 693 308 291 276 310 322 665 626 606 586 112 123 125 118 121 1,010 817 768 767 797 83 83 88 88 90 15 18 14 15 15 3Q08 4Q08 1Q09 2Q09 3Q09 Corp/Other Holdings S&B GTS Regional Consumer 3Q08 4Q08 1Q09 2Q09 3Q09 Other Assets (1) Loans, net Investments Cash & Deposits with Banks (1) Other Assets include Trading Account Assets, Brokerage Receivables, Fed Funds sold/repo, Goodwill and Intangibles, and Other Assets. 8
Structural Liquidity Level Structural Liquidity as a % of Total Assets 63% 66% 68% 71% 72% 38% 40% 42% 44% 44% 19% 19% 19% 19% 20% 6% 7% 8% 8% 7% 3Q08 4Q08 1Q09 2Q09 3Q09 Stockholders' Equity Long-Term Debt Deposits 3Q08 4Q08 1Q09 2Q09 3Q09 Deposits $780.3 $774.2 $762.7 $804.7 $832.6 Long-Term Debt 393.1 359.6 337.3 348.0 379.6 Stockholders' Equity 126.1 141.6 143.9 152.3 140.8 $1,299.5 $1,275.4 $1,243.9 $1,305.1 $1,353.0 9
2009 YTD Long-Term Non-TLGP Issuance Summary YTD Issuance by Tenor (1) YTD Issuance by Currency $3.3 USD $0.8 Non-USD 3%4% 4% $3.0 USD $3.6 Non-USD $7.4 USD $3.7 Non-USD 27% 62% 5YR 10YR 30YR USD Euro Sterling Yen Other (1) USD & Non-USD amounts show all non-guaranteed senior debt issued by Citigroup Inc. and Citigroup Funding Inc. 10
Maturities & Issuance (1) of Long-Term Debt $76 $36 $47 $6 $39 $54 $31 $41 $22 ~$15 FY 2008 FY 2009 YTD 2009 FY 2010 Maturities Non-TLGP Issuance TLGP Issuance (2) (1) Maturities and Issuance include senior debt and TLGP in Citigroup Inc., Citigroup Funding Inc. (CFI), and Citigroup Global Markets Holdings Inc. (CGMHI); and TLGP in Citibank, N.A. Aggregate annual maturities of long-term debt as disclosed in Citigroup Inc. s Form 10-K for 2008 are $88.5bn for 2009 and $41.4bn in 2010, (based on issuances in 2009, current estimate of 2010 maturities is $47bn), which include FHLB & local country debt, not included in this chart. (2) YTD 2009 Issuance includes $5bn of TLGP issued on 9/29/09, which settled on 10/6/09. 11
Summary Raised Capital Successful Exchange Offers Strong Capital Base Deposit Growth Loan & Asset Reductions Improved & Robust Structural Liquidity Largely Pre-Funded, Modest Re-Issuance Needs Lower Proportion of Wholesale Funding Over Time 12
Fixed Income Investor Review John Gerspach Chief Financial Officer Eric Aboaf Treasurer October 16, 2009
Certain statements in in this this document are are forward-looking statements within the the meaning of of the the Private Securities Litigation Reform Act Act of of 1995. These statements are are based on on management s current expectations and and are are subject to to uncertainty and and changes g in in circumstances. Actual results may may differ materially y from from those included in in these statements due due to to a variety of of factors. More information about these factors is is contained in in Citigroup s s filings with with the the U.S. U.S. Securities and and Exchange Commission. 14