Goldman Sachs U.S. Financial Services Conference Vikram Pandit Chief Executive Officer December 6, 2011
Citigroup Market conditions remain challenging Industry is facing significant changes in the economic, regulatory and competitive landscape Even in this environment, Citi is executing its strategy in a consistent, results-driven manner Core Citicorp strategy and model are well-aligned with global trends 1
Citigroup Results $B Revenues (1) Expenses (2) $61.2 $91.1 $86.6 $61.2 $59.7 $47.8 $47.4 $37.7 2008 2009 2010 YTD'11 2008 2009 2010 YTD'11 Credit Provisions (1,3) Net Income (2) $42.1 $51.8 $10.6 $10.1 $26.0 $(1.6) $9.9 $(19.0) 2008 2009 2010 YTD'11 2008 2009 2010 YTD'11 Note: YTD 11 includes nine months to September 30, 2011. (1) Periods prior to 1Q 10 are on a managed basis. For additional information, see Citigroup's Fourth Quarter 2010 Quarterly Financial Data Supplement furnished as an exhibit to Form 8-K filed with the U.S. Securities and Exchange Commission on January 18, 2011. (2) Ex-Goodwill impairment charge of $9.6 billion ($8.7 billion after-tax) recorded in the fourth quarter of 2008. (3) Credit provisions: net loan loss reserve builds (releases), policyholder benefits and claims, provisions for unfunded lending commitments and net credit losses. 2
Consistent Execution is Delivering Results Reducing & De-Risking Citi Holdings Investing for Sustainable Growth in Citicorp Disciplined Expense Management Citi Holdings reduced by $538B since peak in 1Q 08 With transfer of Retail Partner Cards, represents 13% of assets YTD loss of $1.6 billion (1) International revenues are the largest and fastest-growing component of Citicorp, driven by emerging markets We have the right strategy and business model Revenues and key drivers stabilizing in NA Consumer Banking On track to achieve positive operating leverage targets Well-diversified, high quality loan portfolio (up 13% year-over-year) Citicorp investments YTD largely funded with re-engineering savings and wind-down of Citi Holdings Pacing investments to the size of opportunity in each market Building TBV and Capital Tangible book value per share (2) up 11% YoY to $49.50 Tier 1 Common capital of $115B, or 11.7% of risk-weighted assets Multiple sources of capital generation Note: YTD 11 includes nine months to September 30, 2011. (1) As reported, not adjusting for the announced transfer of the vast majority of Retail Partner Cards from Citi Holdings into Citicorp, expected to occur in the first quarter of 2012. (2) Tangible book value per share is a non-gaap measure. For additional information on this metric, please see slide 26. 3
Citi Holdings Reducing Assets & De-Risking $B GAAP Assets Credit Provisions % Total Assets 827 NCL 29.2 (2) (3) LLR Build/(Release) 38% 556 421 289 29% 21% Risk-Weighted Assets 246 15% 13% 1Q'08 3Q'09 3Q'10 3Q'11 3Q'11 PF (1) 17.1 19.1 11.1 9.5 5.4 (3.6) (4.0) 2008 2009 2010 YTD'11 Net Income 380 368 % Total Assets 261 217 $(9.1) $(4.3) $(1.6) 38% 37% 27% 22% $(36.4) 3Q'09 3Q'10 3Q'11 3Q'11 PF (1) 2008 2009 2010 YTD'11 Note: YTD 11 includes nine months to September 30, 2011. (1) Preliminary. Pro forma for the announced transfer of the vast majority of Retail Partner Cards from Citi Holdings into Citicorp, expected to occur in the first quarter of 2012. (2) Periods prior to 1Q 10 are on a managed basis. For additional information, see Citigroup's Fourth Quarter 2010 Quarterly Financial Data Supplement furnished as an exhibit to Form 8-K filed with the U.S. Securities and Exchange Commission on January 18, 2011. (3) Includes provision for unfunded lending commitments. Does not include policyholder benefits and claims. 4
Citi Holdings Reducing Assets & De-Risking $B Citi Holdings Pre-Tax Income Local Consumer Lending Pre-Tax Income Holdings Ex-LCL Local Consumer Lending LCL Ex-Mortgage Mortgage ($3.1) 1.2 0.3 (2.1) (0.2) (1.5) 0.3 0.2 (1.6) (1.0) 0.9 (1.2) (0.3) (0.9) ($8.3) (2.5) 1.0 (4.1) (3.1) (5.8) 1Q 2Q 3Q 4Q 2010 1Q 2Q 3Q 2011 2010 YTD'11 Note: YTD 11 includes nine months to September 30, 2011. 5
Citi Holdings Reducing Assets & De-Risking $B Local Consumer Lending Assets North EOP Mortgages International Other 9% CRE 1% 7% Auto 2% Student 2% Personal 5% Retail Partner Cards 20% Other Mortgage Assets 3% Mortgage Loans 51% Residental 1st Mortgages Home Equity (36%) 174 151 62 126 53 111 46 41 113 97 80 70 $218B as of 3Q 11 75% of Holdings Assets Note: Totals may not sum due to rounding. 4Q'08 4Q'09 4Q'10 3Q'11 6
Citicorp Investing for Sustainable Growth Delivering the world for our clients Unparalleled ability to serve clients in ~160 countries On the ground in ~100 countries across North, Latin, Europe, and Africa Local market deposit-gathering and asset funding Unique ability to facilitate EM-DM and EM-EM flows Focused on the world s top cities Focused on retail banking in the world s 150 largest and most important cities Existing presence in ~120 of these cities, and already the leading global cards issuer Leveraging our core historical strengths to serve clients needs Getting back to the basics of banking and capital markets Aligned with regulatory and capital objectives 7
Citicorp + Retail Partner Cards $B Citicorp Only Retail Partner Cards (YTD 11) Revenues (1) Expenses (2) 67.8 68.4 65.6 55.4 31.1 4.9 1.7 34.8 32.7 36.1 50.6 29.4 2008 2009 2010 YTD'11 with RPC 2008 2009 2010 YTD'11 with RPC (3) (3) Credit Provisions (1,4) Net Income (2) 13.6 1.2 12.7 16.1 9.7 5.0 1.2 3.8 15.5 15.3 14.7 12.4 2008 2009 2010 YTD'11 with RPC 2008 2009 2010 YTD'11 with RPC YTD 11 with RPC (3) (3) (3) Note: Totals may not sum due to rounding. YTD 11 includes nine months to September 30, 2011. (1) Periods prior to 1Q'10 are on a managed basis. For additional information, see Citigroup's Fourth Quarter 2010 Quarterly Financial Data Supplement furnished as an exhibit to Form 8-K filed with the U.S. Securities and Exchange Commission on January 18, 2011. (2) Excludes the 4Q 08 $9.6B pre-tax ($8.7B after-tax) goodwill impairment. (3) Preliminary. Pro forma for the announced transfer of the vast majority of Retail Partner Cards from Citi Holdings into Citicorp, expected to occur in the first quarter of 2012. (4) Credit provisions: net loan loss reserve builds (releases), policyholder benefits and claims, provisions for unfunded lending commitments and net credit losses. 8
Citicorp is Uniquely Global Physical Presence in ~100 Countries and Client Service in ~160 Countries North 2 GTS 2 Trading & Sales 2 Corporate Bank 1 Consumer Bank 2 Private Bank Western Europe 17 GTS 11 Trading & Sales 16 Corporate Bank - Consumer Bank 6 Private Bank World 95 GTS(1) 86 Trading & Sales 89 Corporate Bank 39 Consumer Bank 23 Private Bank LATAM 23 GTS 22 Trading & Sales 22 Corporate Bank 14 Consumer Bank 2 Private Bank 18 GTS 17 Trading & Sales CEEMEA 16 Corporate Bank 35 GTS 14 Consumer Bank 34 Trading & Sales 8 Private Bank 33 Corporate Bank 10 Consumer Bank 5 Private Bank Local Infrastructure Serving Clients / No Physical Infrastructure Note: (1) Transaction Services (GTS) offers service in over 140 countries, including non-presence countries. 9
Citicorp is Uniquely Global Emerging Markets Developed Markets Revenues (1) ($B) $68.4 $65.6 $50.6 58% 56% 54% 42% 44% 46% 2009 2010 YTD'11 Income from Continuing Ops. ($B) Developed Emerging 18% Latin 20% CEEMEA 5% 8% Developed 4% North 37% 11% Western Europe $15.4 $14.8 $12.4 57% 40% 45% 43% 60% 55% 2009 2010 YTD'11 Emerging 23% Latin 20% 12% North 30% 11% CEEMEA Western Europe Note: Totals may not sum due to rounding. YTD 11 includes nine months to September 30, 2011. (1) Periods prior to 1Q'10 are on a managed basis. For additional information, see Citigroup's Fourth Quarter 2010 Quarterly Financial Data Supplement furnished as an exhibit to Form 8-K filed with the U.S. Securities and Exchange Commission on January 18, 2011. 10
Emerging Markets Driving Global Growth Emerging Markets are Driving GDP Growth EM Trade as a % of Total World Trade 2010 2015E CAGR 5.7% $83T CAGR 7.4% 12.3% 25% World GDP 3.2% 2.4% $37T 49% 8.2% 1.6% EM-EM 15% DM-EM 45% 0.5% DM-DM 40% 26% 3.5% Developed 2010 2020 Developed Total Euro Area U.S. Emerging Total Source: Citi Investment Research & Analysis 11
Citicorp Investing for Sustainable Growth $B S&B CVA: (1.8) (1.9) 0.3 0.3 0.1 (1.0) (0.2) 0.1 1.9 6.6 5.2 Revenues (1) (ex-cva) 17.0 15.6 18.2 16.2 16.2 15.3 16.7 16.2 7.7 15.8 5.7 5.5 4.6 6.2 5.3 4.8 2.5 2.5 2.4 2.5 2.5 2.6 2.6 2.7 2.7 YTD 11 Revenues (ex-cva) RCB S&B GTS 7.9 7.9 8.1 8.0 8.1 8.1 7.9 8.2 8.3 16% 3Q'09 4Q'09 1Q'10 2Q'10 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 Net Income 5.1 4.6 4.1 3.7 3.5 3.7 3.2 2.1 2.5 1.7 1.7 1.4 2.4 1.2 1.8 0.8 0.2 0.9 0.9 0.9 0.9 0.8 0.9 0.9 0.3 0.9 0.9 0.7 0.6 1.0 1.1 1.2 1.3 1.5 1.6 1.6 34% Total: $48.8B 50% 3Q'09 4Q'09 1Q'10 2Q'10 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 Note: Totals may not sum due to rounding. YTD 11 includes nine months to September 30, 2011. (1) Periods prior to 1Q'10 are on a managed basis. For additional information, see Citigroup's Fourth Quarter 2010 Quarterly Financial Data Supplement furnished as an exhibit to Form 8-K filed with the U.S. Securities and Exchange Commission on January 18, 2011. 12
Citicorp Transaction Services $B Treasury & Trade Solutions 73% 27% Revenues $9.8 $10.1 72% 28% Securities & Fund Services $7.9 72% 28% 2009 2010 YTD'11 Income from Continuing Ops. $3.8 $3.7 $2.6 Developed 4% North Emerging 23% 24% Latin 16% Emerging 30% 15% Developed 4% Western Europe 18% CEEMEA 14% North 19% Western Europe 2009 2010 YTD'11 Latin 19% 14% CEEMEA Note: Totals may not sum due to rounding. YTD 11 includes nine months to September 30, 2011. 13
Citicorp Securities and Banking $B $29.1 4.8 5.4 21.0 (2.1) Revenues ex-cva (1) Fixed Income Inv. Banking $23.5 1.7 3.8 3.7 14.3 Equities All Other $16.4 2.4 2.7 2.2 9.2 2009 2010 YTD'11 Developed 5% Emerging 16% Latin CEEMEA 11% 10% Western Europe 24% North 35% Income from Continuing Ops. $9.2 $6.5 $5.0 2009 2010 YTD'11 Developed 2% Emerging North 17% 29% Latin 15% Western Europe 17% 20% CEEMEA Note: Totals may not sum due to rounding. YTD 11 includes nine months to September 30, 2011. (1) CVA of $1,806 million in YTD 11, $(399) million in 2010 and $(1,957) million in 2009. All Other includes Private Bank, Lending and Other Securities and Banking. 14
Citicorp Consumer Banking North ~300 branches EMEA ~1,000 branches Latin ~2,600 branches (1) ~700 branches $338B $310B $33B $6B 36% 35% 24% 33% 37% 3% 24% 48% 3% 15% 42% 5% 29% 38% 1% 27% Assets (2) Note: Totals may not sum due to rounding. (1) Includes ~400 branches from the Banco de Chile joint venture. (2) As of 3Q 11. Average assets and end of period deposits. (3) Last twelve months to 3Q 11. Deposits (2) Revenues (3) Net Income (3) 15
Citicorp Consumer Banking Developed Markets ~1,100 branches Emerging Markets ~3,500 branches (1) $338B $310B $33B $6B 37% DM North 8% 55% North 48% DM 11% 42% North 42% DM 6% 52% DM North 38% 6% 56% Assets (2) Note: Totals may not sum due to rounding. (1) Includes ~400 branches from the Banco de Chile joint venture. (2) As of 3Q 11. Average assets and end of period deposits. (3) Last twelve months to 3Q 11. Deposits (2) Revenues (3) Net Income (3) 16
Citicorp Consumer Banking LTM Pre-Tax Earnings, Excluding LLR Build / Release ($B) (1,2) Continuing to improve profitability both internationally and in NA 6.0 Total Consumer Banking $5.5B 6.0 North International 5.0 5.0 $4.3B 4.0 4.0 3.0 3.0 2.0 2.0 $1.1B 1.0 1.0 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 0.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2009 2010 2011 YTD 2009 2010 2011 YTD Note: Periods prior to 1Q'10 are on a managed basis and results do not reflect the transfer of approximately $2.6 billion of commercial market loans from Regional Consumer Banking to Institutional Clients Group in the third quarter of 2011. (1) Last twelve months to each period. (2) Excludes goodwill impairment charge of $2.3B for NA and $4.3B for international in 4Q 08. 17
Fiscal Strength of Emerging Markets Distribution of Government Debt as % GDP and Average Expected GDP Growth 140% 250% 120% Italy Japan Developed Emerging Government Debt 2011 (%GDP) 100% 80% 60% 40% 20% Spain France United States Singapore United Kingdom Germany Canada Netherlands Brazil Mexico Malaysia Argentina South Africa Turkey Taiwan Australia Korea Russia Indonesia India China 0% Hong Kong -1% 1% 3% 5% 7% 9% Average GDP Growth 2011 2015E (%) Source: Global Economic Outlook and Strategy, Citi Investment Research & Analysis (November 28, 2011) for Average GDP Growth; World Economic Outlook Database, International Monetary Fund (October 2011) for Government Debt 18
Citicorp Consumer Portfolio Size Plot of Citicorp Consumer Loans for U.S. and 10 Largest International Markets ($B) Government Debt 2011 (%GDP) 140% 250% 120% 100% 80% 60% 40% 20% 0% Japan $2.9 United States $110.3 Australia $12.6 Mexico $21.7 Korea $26.2 Singapore $9.6 Brazil $7.2 Taiwan $6.0 Hong Kong $8.0 Malaysia $5.2-1% 1% 3% 5% 7% 9% Average GDP Growth 2011 2015E (%) Developed Emerging Size = 3Q 11 EOP Loans India $7.1 Source: Global Economic Outlook and Strategy, Citi Investment Research & Analysis (November 28, 2011) for Average GDP Growth; World Economic Outlook Database, International Monetary Fund (October 2011) for Government Debt 19
Citicorp Summary Model Is Well Positioned Economy Unparalleled exposure to faster-growing emerging markets Citicorp: YTD 46% of revenues and 55% of net income in EM Structural drivers of sustained EM growth in excess of developed markets Competition Regulation Long-standing global footprint with unmatched local market knowledge and expertise We have the right strategy and business model Difficult to replicate Citi s global presence and likely limited ability for peers to pursue significant M&A Less exposed to consumer regulatory changes in U.S. Immaterial bright line proprietary trading business Supportive of more transparency in derivative markets Capital Basel 3 friendly business model: Minimal B3 impact on GTS and RCB businesses Consumer base skewed to higher credit quality borrowers Institutional business focused on flow facilitation Note: YTD 11 includes nine months to September 30, 2011. 20
Citigroup Disciplined Expense Management Year-over-Year Change ($B) 8.1% 5.3% 2.8% 2.8 1.8 37.7 34.9 ~ (1.4) (0.4) 35.9 ~ Operating: +$1.0B YTD 2010 Invest. Efficiency Saves All Other Operating (1) YTD 2011 FX, Legal & (2) Other YTD 2011 Year-to-date, operating expenses up 2.8% vs. last year (3) Note: Totals may not sum due to rounding. YTD includes nine months to September 30 th for each year. (1) Includes volumes, divestitures and all other operational expenses. (2) Includes a $0.4B benefit from the absence of the 2Q 10 UK bonus tax. (3) Excludes macro / episodic driven expenses, including the impact of foreign exchange translation, higher legal and related costs and other. 21
Citigroup Ongoing Efficiency Savings $B Efficiency Savings Roughly 75% of YTD efficiency savings driven by global Operations & Technology IT Infrastructure Other 17% & Application Development 25% Real Estate 9% Expense Resource Management Management & Labor 11% Business Re-engineering Support 22% Re-engineering 16% Year-to-Date: $1.4B ~4% of Expense Base Predominantly in IT infrastructure, labor re-engineering and business support functions (e.g., call centers and collections) Most of these savings are allocated to the businesses, as appropriate Remaining 25% generated directly by the businesses and global functions Focused on expense management In total, over 70% of YTD efficiency savings attributable to Citicorp Roughly 2/3 rd in Consumer Banking and 1/3 rd in Institutional Clients Group Note: Totals may not sum due to rounding. YTD 11 includes nine months to September 30, 2011. 22
Citigroup Building TBV and Capital Tangible Book Value Per Share (1) Tier 1 Common Capital ($B) Tier 1 Common Capital Tier 1 Common Ratio $56.99 $49.50 $104 $105 $115 $41.50 $44.55 9.6% 10.8% 11.7% $23 2.3% 4Q'08 4Q'09 4Q'10 3Q'11 4Q'08 4Q'09 4Q'10 3Q'11 Risk-Weighted Assets ($B): $996 $1,089 $978 $984 Note: The adoption of SFAS 166 / 167 in 1Q'10 reduced Tier 1 Common ratios by 138 basis points and increased risk-weighted assets by $24B. The exiting of the loss-sharing agreement with the U.S. Government increased 4Q 09 risk-weighted assets by approximately $136B. (1) Tangible book value per share is a non-gaap measure. For additional information on this metric, please see slide 26. 23
Citigroup Regulatory Capital Drivers 3Q 11 ($B) Tier 1 Common Capital Risk-Weighted Assets (1) 177 Citicorp Citi Holdings (39) (30) 8 115 22% 78% Common. Disallowed ' Goodwill Stockholders DTA & Equity Intangibles Other Tier 1 Common Capital Total: $984B Note: Totals may not sum due to rounding. (1) Adjusted for the announced transfer of the vast majority of Retail Partner Cards from Citi Holdings into Citicorp, expected to occur in the first quarter of 2012. 24
Conclusion Remaining vigilant in risk management to protect the franchise, while continuing to invest in the future Maintaining a highly liquid balance sheet De-risking appropriately Containing exposure to Western Europe while continuing to support our important clients Managing legacy U.S. mortgage portfolio to mitigate risk Growing a high quality portfolio in Citicorp Serving the largest multi-national corporations on a global basis Building a diverse and high-quality consumer loan portfolio with a focus on faster-growing economies Disciplined expense management 25
Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in millions, except per share amounts) 9/30/2011 12/31/2010 12/31/2009 12/31/2008 Citigroup's Total Stockholders' Equity $177,372 $163,468 $152,700 $141,630 Less: Preferred Stock 312 312 312 70,664 Common Stockholders' Equity 177,060 163,156 152,388 70,966 Less: Goodwill 25,496 26,152 25,392 27,132 Intangible Assets (other than Mortgage Servicing Rights) 6,800 7,504 8,714 14,159 Net Deferred Tax Assets Related to Goodwill and Intangible Assets 47 56 68 (1,382) Tangible Common Equity (TCE) $144,717 $129,444 $118,214 $31,057 Common Shares Outstanding at Quarter-end 2,923.7 2,905.8 2,848.3 545.0 Tangible Book Value Per Share $ 49.50 $ 44.55 $ 41.50 $ 56.99 (Tangible Common Equity / Common Shares Outstanding) 26
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 document 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 2010 Form 10-K. 27
Goldman Sachs U.S. Financial Services Conference Vikram Pandit Chief Executive Officer December 6, 2011