Professional Documents
Culture Documents
1
Major P&L Items in 4Q’09
Pre-tax
e ta
($MM) Impact Segment
Exiting of loss-sharing
agreement with USG (2) (2,064) Corp/Other
(1) Loss from the repayment of trust preferred securities held by the U.S. government ($4.9B after-tax).
(2) Impact from the termination of the loss-sharing agreement with the government ($1.3B after-tax). It arises from the removal of the
loss-sharing asset of ~$3.2B and the cancelation of ~$1.1B carrying value of trust preferred securities ($1.8B notional amount).
(3) Credit value adjustment (CVA) on Citi Liabilities at Fair Value Option (FVO) and derivatives of $949 million due to tightening in Citi’s
credit spreads in the fourth quarter and a $840 million adjustment to the FVO CVA balance, reflecting correction of prior periods.
Please see slide 36 for Citi’s CVA in 3Q and 4Q of 2009.
2
Citigroup – Summary Income Statement
($B, Except EPS) 4Q'09 3Q'09 4Q'08 % UQoQ % UYoY
I
Income Taxes
T (7 353)
(7,353) (1 122)
(1,122) (10 698)
(10,698) NM 31%
(2, 3)
Diluted EPS from Cont. Ops. $(0.34) $(0.23) $(4.04) (48)% 92%
(2, 3)
Diluted EPS $(0.33) $(0.27) $(3.40) (22)% 90%
(1) Includes provision for unfunded lending commitments.
(2) 3Q’09 Includes $(2.2)B impact to common shareholders from the completion of all stages of the exchange offers, net of $851MM gain flowing through net income.
(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
Citigroup – Financial Summary
( ) Includes provision
(1) p for unfunded lendingg commitments.
Note: Corporate/Other not shown. Net income was $(7,026) million in 4Q’09, $102 million in 3Q’09 and $(7,606) million for 2009.
For more details please refer to slide 13.
4
Citicorp – N.A. Regional Consumer Banking
($MM) 4Q'09 3Q'09 %U 4Q'08 %U
Revenues
(1)
Managed N.A. Regional Consumer Banking:
– Managed revenues down 5% QoQ
Cards revenues $2,386 $2,484 (4)% $2,485 (4)% due to CARD Act impact and
Total revenues 3 386
3,386 3 554
3,554 (5)% 3 449
3,449 (2)% l
lower b
banking
ki revenues
NCLs 2,035 2,156 (6)% 1,444 41%
– GAAP cards revenue decreased
Revenues $1,642 $1,754 (6)% $1,847 (11)%
QoQ mainly driven by impact from
implementation of CARD Act, partly
Cards 642 684 (6)% 883 (27)% offset by lower losses flowing through
Retail Banking 1,000 1,070 (7)% 964 4% the securitization trusts
(1) Managed metrics are non-GAAP financial measures. Please see slides 38 and 39 for additional information on these metrics.
5
Citicorp – Int’l Regional Consumer Banking
($MM) 4Q'09 3Q'09 %U 4Q'08 %U
Revenues
Revenues $4,078 $3,921 4% $3,863 6%
– Continued QoQ improvement in most
EMEA 386 415 (7)% 398 (3)% drivers across all regions and
Latin America 1 918
1,918 1 826
1,826 5% 1 852
1,852 4% FX impact
Asia 1,774 1,680 6% 1,613 10%
6
Citicorp – Securities and Banking
($MM) 4Q'09 3Q'09 %U FY 2009 %U Revenues
– Fixed Income Markets: Ex-CVA,
Product Revenues Ex-CVA:
down 36% QoQ, driven by overall
Investment Banking $1,458 $1,163 25% $4,763 47% decline in volume and volatility
Equity Markets 732 1 324
1,324 (45)% 5 373
5,373 97% – Equity
E it Markets:
M k t Ex-CVA,
E CVA downd 45%
Fixed Income Markets 2,990 4,705 (36)% 21,075 56% QoQ, driven by overall decline in
Lending (197) (699) 72% (2,153) NM
volume and volatility
Private Bank
– Investment Banking: Up 25% QoQ,
564 559 1% 2,098 (8)%
with equity underwriting up $0.4B
Other ((194)) ((482)) 60% ((1,740)
, ) 18% and advisory up 13%
13%. Ranked #3 in
(1) completed M&A for 2009
Regional Revenues Ex-CVA:
– Lending: Revenue improvement
North America $1,964 $2,160 (9)% $11,329 NM QoQ reflected lower CDS losses
EMEA 1,718 2,746 (37)% 10,414 NM – Private Bank: Capital markets
Latin America 763 638 19% 2,842 NM revenues offset spread
p compression
p
Asia 909 1,025 (11)% 4,832 NM
Expenses
Total Revenues Ex-CVA $5,353 $6,570 (19)% $29,416 23% – Roughly flat QoQ; FY’09 down 17%
(1) CVA was primarily allocated to North America prior to 2009, hence the regional year on year comparison is not meaningful.
Note: Totals may not sum due to rounding.
7
Citicorp – Transaction Services
($MM) 4Q'09 3Q'09 %U FY 2009 %U
Revenues
Revenues $2,475 $2,457 1% $9,789 (2)% – TTS: Down 2% QoQ due to low
North America 638 643 (1)% 2,526 17% interest rate environment and spread
EMEA 840 845 (1)% 3 389
3,389 (8)% compression
Latin America 353 337 5% 1,373 (5)% – SFS: Up 7% QoQ driven by gain on
Asia 644 632 2% 2,501 (6)% sale of NikkoCiti Trust and
improvement in market/volumes
Expenses 1,212 1,141 6% 4,515 (12)%
Expenses
E
Credit Costs 8 (7) NM 7 (80)%
– QoQ growth of 6% driven by
N.I. from Cont. Ops. $919 $939 (2)% $3,736 11% increased technology spending,
North America 144 152 (5)% 615 90%
higher volumes, and repositioning
EMEA 303 308 (2)% 1 287
1,287 3%
Latin America
Credit costs
146 148 (1)% 604 3%
Asia 326 331 (2)% 1,230 3% – Stable with small LLR build
8
Citi Holdings – Asset Summary
EOP Assets ($B)
4Q’09 % Total
Brokerage
g & Asset Management
g $35 6%
• Morgan Stanley Smith Barney JV 26 5
$(351)B • Retail Alt. Inv. / Latam Asset Mgmt. 9 2
898
833 Local Consumer Lending $358 65%
775 • North America 317 58
715 – Mortgages 185 34
662 649 – Student 31 6
617
– Cards (Retail Partners) 38 7
547 – Personal & Other 25 5
– Auto 14 3
– Commercial
C i lR
Reall E
Estate
t t 11 2
– Other (1) 13 2
• EMEA 29 5
• Asia 12 2
Special
p Asset Pool $154 28%
• Securities at AFS/HTM 48 9
• Loans, Leases & LCs 33 6
• Mark-to-Market 31 6
• Other 42 8
35
75% MS Smith
Barney JV
(1)
1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09
(1) Closing of the Nikko Cordial Securities and Nikko Asset Management transactions were the main drivers of the asset decrease.
10
Holdings – Local Consumer Lending
EOP Assets ($B) Asset Composition
Primerica 3% 4% CRE
$(126)B
484 International
469 452 11%
416 396 392 Student
376 358
Loan Corp 9%
(1) Managed metrics are non-GAAP financial measures. Please see slide 39 for additional information on these metrics.
11
Holdings – Special Asset Pool
EOP Assets ($B) Asset Composition
12
Corporate / Other
A
Assets 230 2 8
258 (11)% 222 4% C
Cashh and
d deposits
d it with
ith banks
b k representt 48%
of Corporate / Other assets
Deposits 13 15 (13)% 18 (28)%
13
Citigroup – Provisions (1)
($B)
C
Corporate
t
12.7 12.7
0.6 0.3 3.5
2.4 1.5 0.8
10.3 1.1 1.5 1.1
40
4.0 (0.1)
(0 1) (0.3)
(0 3)
0.3
9.1 9.1 4Q'08 3Q'09 4Q'09
0.3 6.0 0.3 8.2
2.7 0.8 0.3
7.1 0.8 Consumer
0.3 3.9
59
5.9
0.3 2.5
9.2
7.7 7.4
1.9 3.5 0.9
8.4 8.0 1.0
7.3 7.1
6.1 64
6.4
49
4.9 51
5.1 61
6.1
3.6 4.3
(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. 14
Citigroup – Consumer Credit Trends
1Q'08
Q 2Q'08
Q 3Q'08
Q 4Q'08
Q 1Q'09
Q 2Q'09
Q 3Q'09
Q 4Q'09
Q
Note: The 2009 fourth quarter includes a reduction of approximately $335 million related to securitizations and approximately $400 million related to the sale or
transfers to held-for-sale of U.S. Real Estate Lending Loans.
NCLs as a % of average loans; Loan Loss Reserves as a % of EOP loans.
15
Citigroup – Consumer Credit
Coverage and Credit Losses
(1) Managed
NCLs Holdings ($B) NCLs Citicorp ($B) Months of Coverage NCLs (2)
($B)
14.1
13.3 9.4
13.1 8.9
12.6 12.5 12.6 12.7
12 3
12.3 Int l
Int’l
Int’l
2.1
1.9
6.6 6.4
6.1
5.7
5.1
4.6
3.9 N.A.
3.5 5.2 5.0 N.A.
4.7 7.3
4.6 7.0
3.5 4.0
27
2.7 3.0
3 0
1Q'08
1Q 08 2Q'08
2Q 08 3Q'08
3Q 08 4Q'08
4Q 08 1Q'09
1Q 09 2Q'09
2Q 09 3Q'09
3Q 09 4Q'09
4Q 09 3Q'09
3Q 09 4Q'09
4Q 09
(1) Months of coverage: current reserve balance / (current period net credit losses / 3).
(2) Managed metrics are non-GAAP financial measures. Please see slide 39 for additional information on these metrics.
Note: SAP consumer NCLs booked in North America. Totals may not sum due to rounding.
16
Citigroup – Int’l Consumer Credit Trends
($B)
Citicorp – Asia Consumer Banking Citicorp – Latin America Consumer Banking
90+DPD NCL 90+DPD NCL
$1.06
$0.65
$0 59
$0.59 $0.94
$0 9 $0.93 $0 92
$0.92 $0.94
$0 9
$0 57
$0.57 $0.87
$0.51 $0.51 $0.81 $0.83
$0.48 $0.47 $0.48
$0.64 $0.66 $0.63
$0.61
$0.35 $0.35 $0.56 $0.54 $0.54
$0.31 $0.47
$0.24 $0.26 $0.26 $0.27
$0.21
Avg.
Avg 3Q’09 4Q’09 Avg.
Avg 3Q 09
3Q’09 4Q 09
4Q’09
Loans $64.3 $67.2 Loans $28.8 $30.1
1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09
Citi
Citicorp – EMEA Consumer
C Banking
B ki H ldi
Holdings – International
I t ti l LCL
90+DPD NCL 90+DPD NCL
$1.54
$1.45
Avg. 3Q’09 4Q’09 $1.36 $1.35
Loans $8.7 $8.5 $1.15
$0 16
$0.16 $0 99
$0.99 $1 03
$1.03 $0 98
$0.98 $0 97
$0.97
$
$0.15 $0.14 $0.89 $0.83
$0.11 $0.74 $0.74 $0.80
$0.66 $0.70
$0.07 $0.07 $0.08 $0.14 $0.14
$0.12
$0.05 $0.09 $0.09 Avg. 3Q’09 4Q’09
$0.06 Loans $39.5 $36.3
$0.05 $0.05
$0 05
1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09
17
Managed N.A. Cards – Consumer Credit Trends
Citicorp ($B) 90+DPD NCLs
$1.73 $2.15
$1.61 $2.00
$1.96 $1.96
$1.56
$1.62 Avg. Mgd. Loans: (1)
$1.46
$1 19
$1.19 $1 29
$1.29 3Q
3Q’09:
09: $59
$59.8
8
4Q’09: $58.2
U
Unemployment
l tRRate
t
5.1% 5.5% 6.1% 7.2% 8.5% 9.5% 9.8% 10.0%
(1) Managed metrics are non-GAAP financial measures. For additional information on these metrics please see pages 38 and 39 of Citigroup’s
4Q’09 quarterly financial data supplement. 18
Citi Holdings – N.A. Mortgage Credit Trends
1st Mortgages ($B) 90+DPD NCLs
$11.94
Avg. Loans: $10.57
3Q’09: $125.3
$8.09 $8.57
4Q’09: $121.3
$6.47
$
$5.26
$4.20
$3.48
8.57
8 5
8.09 6.65
6.06
6.47
5.26 3.88 4.96
4.20 2.89
3.48 2.29
2.34
1.87 5.29
4 20
4.20 4 51
4.51
3.58 3.61
2.97
1.61 1.86
(1) Loans 90+ Days Past Due exclude U.S. mortgage loans that are guaranteed by U.S. government-sponsored agencies because the potential loss
predominantly resides with the U.S. agencies.
Note: Totals may not sum due to rounding.
20
Citigroup – Assets
(EOP $Tr)
12.9%
10.3% 10.5% 11.3% 10.4%
6.9%
4.7% 5.4%
1.22 1 16
1.16 1 16
1.16 1 01
1.01 1 08
1.08
1 00
1.00 0 96
0.96 0 98
0.98
(1)
1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09
Tier 1 Capital
Total Capital
(1)
Tier 1 Common
(1) 16.6% 16.6%
Tangible Common Equity 15.7% 15.6% 15.3%
12.7% 12.8%
12.3% 11.9% 11.9%
11.7% 11.7%
11.2%
10.3% 10.9%
8.7%
7.7% 8 2%
8.2%
9.6%
9.1%
4.2% 4.4%
3.9% 4.0%
3.1%
3 % 3.0%
4.1% 4.3%
3.7%
2.3% 2.7%
2.2%
(2)
1Q'08
1Q 08 2Q'08
2Q 08 3Q'08
3Q 08 4Q'08
4Q 08 1Q'09
1Q 09 2Q'09
2Q 09 3Q'09
3Q 09 4Q'09
4Q 09
(1) Tier 1 Common and Tangible Common Equity are non-GAAP financial measures. Please see slide 40 for additional information on these metrics.
(2) Preliminary. Based on information available as of December 31, 2009, on a pro forma basis the adoption of FAS 166/167 is expected to reduce
4Q’09 Tier 1 Capital by ~140 basis points, Total Capital by ~150 basis points, and Tier 1 Common by ~140 basis points.
22
Conclusions
23
APPENDIX
Table of Contents
24
Citigroup – Deposits
(EOP $B)
(1)
Citicorp Holdings Corp/Other Disc Ops Deposits % Loans
150%
142%
133%
122%
113% 116%
108% 111%
(2)
1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09
Corp/Other
C /Oth (6) NM (1 0)%
(1.0)% $225
Asset $B Transferred to
Brokerage and Asset Management ~$5
• Afore and Seguros Banamex 5 Regional Consumer Bnkg.
Total ~$61
27
Citigroup – Int’l Consumer Credit
Rank % of Total 90+DPD Ratio NCLRatio % of Total
4Q’09 ANR ANRs 4Q’09 3Q’09 4Q’09 3Q’09 NCLs
Citicorp
p
Korea 1 19.5% 0.3% 0.5% 0.9% 1.4% 4.3%
Mexico 2 17.1 2.6 2.9 8.1 9.9 34.4
Australia 3 10.2 0.6 0.6 1.5 1.7 3.7
Singapore 4 6.5 0.3 0.3 0.6 0.7 1.0
India 5 5.7 1.9 2.3 5.5 5.9 7.9
Brazil 6 5.2 4.1 3.5 9.7 8.9 12.6
Taiwan 7 4.9 0.9 1.1 1.0 1.3 1.3
Malaysia 8 4.6 1.7 1.8 1.4 1.3 1.6
Hong Kong 9 46
4.6 02
0.2 02
0.2 10
1.0 16
1.6 12
1.2
Japan 10 2.3 1.4 1.5 3.6 4.0 2.1
80.8% 1.5% 1.5% 4.0% 4.5% 70.1%
Citi Holdings
UK 1 24.9% 6.1% 6.0% 6.0% 7.4% 21.4%
Japan 2 15.5 2.1 2.4 18.3 20.5 33.0
Spain 3 12.0 7.9 7.7 7.7 7.9 9.3
Belgium 4 9.8 1.0 1.0 3.5 2.2 2.0
Greece 5 92
9.2 47
4.7 43
4.3 11 6
11.6 12 7
12.7 11 5
11.5
71.4% 4.1% 3.9% 8.5% 9.6% 77.2%
Note: For 4Q’09, Citicorp total ANR of $105.8B and total NCLs of $1.1B, Citi Holdings total ANR of $36.9B and total NCLs of $0.8B.
28
Citicorp – RCB(1) Average Loans
4Q’09
North America(2) $89.0B EMEA $8.5B
Commercial
Commercial Cards Banking
Cards 3% 36%
92% Banking 21%
4% Other
1% Other
2% Mortgages 38% 1% Mortgages
2% Personal Personal
Personal Mortgages
(1) Regional Consumer Banking.
(2) Managed basis. Managed metrics are non-GAAP financial measures. Please see slide 38 for additional information on these metrics.
29
Citi Holdings – LCL Loan Composition
4Q’09
($B) EOP Loans NCL % of Total 90+
4Q’09 3Q’09 2Q’09 Ratio NCLs DPD%(1)
(1) Loans 90+ Days Past Due exclude U.S. mortgage loans that are guaranteed by U.S. government-sponsored agencies since the potential loss
predominantly resides with the U.S. agencies.
Note: Totals may not sum due to rounding.
30
Citi Holdings – LCL International Avg. Loans
4Q’09
Other 4% 1% Other
Cards
36%
11% C
Commercial
i l
Personal 57%
Personal 34%
26%
31%
% Real
Real Estate
Estate
4Q’09 Total:
T t l $26B 4Q’09 Total:
T t l $10B
31
Citi Holdings – SAP Assets
EOP Assets 4Q’09
($B) Face EOP Assets
4Q’09 3Q’09 2Q’09 Value (% of Face)
(1)
Securities at AFS/HTM $ 47.9 $ 54.9 $ 64.7 $ 65.3 73%
C
Corporates
t 10 3
10.3 14.8
14 8 17.1
17 1 10 6
10.6 97%
Prime and Non-U.S. MBS 15.4 16.0 16.2 19.2 80%
Auction Rate Securities 7.8 8.0 8.3 10.5 75%
Alt-A mortgages 8.7 9.0 9.5 16.9 51%
Government Agencies 0.0 0.7 6.2 0.0 82%
(2)
Other Securities 57
5.7 63
6.3 74
7.4 80
8.0 72%
(3)
Loan, leases & LC at HFI/HFS $ 33.1 $ 41.3 $ 44.6 NM NM
Corporates 20.3 26.4 28.2 22.2 92%
Commercial Real Estate 13.5 15.3 15.8 14.4 94%
Other 3.4 3.7 4.7 4.1 83%
Loan Loss Reserves ((4.1)) ((4.0)) ((4.1)) NM NM
Mark-to-Market $ 30.7 $ 38.5 $ 42.1 NM NM
Subprime securities 7.3 8.0 8.0 18.9 39%
(4)
Other Securities 5.6 6.9 8.4 25.7 22%
Derivatives 6.2 9.4 10.8 NM NM
Loans, Leases and Letters of Credit 5.1 7.3 7.8 8.4 60%
Repurchase agreements 6.5 6.9 7.3 NM NM
Highly Lev. Fin. Commitments $ 2.8 $ 3.5 $ 4.6 4.8 59%
Equities (excludes ARS at AFS) $ 11.3 $ 12.9 $ 13.8 NM NM
SIVs $ 16.0 $ 16.2 $ 16.2 20.5 78%
Monolines $ 1.0 $ 1.3 $ 1.7 NM NM
(5)
Consumer and Other $ 11 6
11.6 $ 13 3
13.3 $ 13 2
13.2 NM NM
Total $ 154.4 $ 182.0 $ 201.0
(1) AFS accounts for approximately 1/3 of the total. (2) Includes CRE ($2.1B), Municipals ($1.1B) and ABS ($1.5B). (3) HFS accounts for
approximately $0.9B of the total. (4) Includes $1.9B of Corporates and $0.7 of CRE. (5) Includes $4.6B of Small Business Banking & Finance loans.
Note: Totals may not sum due to rounding. 32
Citi Holdings – SAP Assets
4Q’09
Commercial Real Estate: $25.4B Alt-A: $8.8B(1)
AFS/HTM ‘04
Securities 3% Vintage
9%
HFI/HFS
63% MTM ‘06 70%
Loans 12% 27%
Vintage 05 Vintage
’05
16%
Equity
Equities: $11.3B
$ SIVs: $16.0B
$
Structured Products(2): 61%
Hedge Funds
21% MBS
11%
CRE
36% Student Loans
15%
Financial
Institutions 39% Credit Cards
35% Debt 8%
Private 18% CMBS
7%
E i
Equity 4%6% CBOs/CLOs
Other /CDOs
Other
(1) Composed of $8.7B in AFS and $0.1B in Trading.
(2) No direct exposure to U.S. subprime assets and approximately $21 million of indirect exposure to subprime assets through CDOs. 33
Citicorp – S&B Revenue Marks
($MM) 1Q’08 2Q’08 3Q’08 4Q’08 1Q’09 2Q’09 3Q’09 4Q’09
MTM on sub-prime
related direct exposures --- --- --- --- --- --- --- ---
Monoline Credit Value
Adjustment (CVA) --- --- --- --- --- --- --- ---
MTM on highly lev’d
finance commitments --- --- --- --- --- --- --- ---
MTM on Alt
Alt-AA
mortgages (1) (216) (48) (221) (252) 13 99 142 67
Mark to market on ARS --- --- --- --- --- --- --- ---
MTM on CRE (18) (65) 130 223 102 (32) 20 (22)
MTM on SIVs --- --- --- --- --- --- --- ---
CVA on Citi Liabilities at
Fair Value Option (2) 1,279 (228) 1,526 1,748 197 (1,452) (955) (1,764)
Derivatives CVA (3) (165) 48 1,178 (4,353) 2,462 597 (722) (133)
q y Inv.
PE & Equity ((64)) ((6)) ((50)) ((257)) ((62)) 11 79 173
Gross Revenue Marks 816 (299) 2,564 (2,891) 2,712 (776) (1,436) (1,679)
Non-credit Accretion (4) --- --- --- --- --- --- --- ---
Net Revenue Marks 816 (299) 2,564 (2,891) 2,712 (776) (1,436) (1,679)
(1) Net of hedges. (2) 4Q’09 includes $840 million adjustment to the CVA balance, reflecting correction of prior periods. (3) Includes Private Bank. (4) Booked in
the net interest revenue line. Note: The revenue and (after-tax impact) of the Company's CVA correction, which reduced revenues and net income in the fourth
quarter of 2009 by $840 million ($518 million), respectively related to the quarters in 2008 and 2009 as follows: $7 million ($4 million), $58 million ($36 million), $97
million ($60 million), and $44 million ($27 million), for the first, second, third and fourth quarters of 2008, respectively, and $198 million ($122 million), $115 million
($71 million) and $197 million ($121 million) for the first, second and third quarters of 2009, respectively. The revenue impact and (after-tax impact) of the
Company's CVA correction related to 2007 was $124 million ($77 million). Excludes Discontinued Operations.
Note: Totals may not sum due to rounding.
34
Citi Holdings – Revenue Marks
($MM) 1Q’08 2Q’08 3Q’08 4Q’08 1Q’09 2Q’09 3Q’09 4Q’09
MTM on sub-prime
related direct exposures (1) (5,912) (3,395) (394) (4,582) (2,296) 613 1,967 526
Monoline Credit Value
Adjustment (CVA) (1,491) (2,428) (920) (897) (1,090) 157 (61) (306)
MTM on highly lev’d
finance commitments (2) (3,078) (428) (792) (594) (247) (237) (24) (13)
MTM on Alt
Alt-AA
(3,
mortgages 4) (799) (277) (932) (1,067) (503) (390) (196) (362)
Mark to market on ARS (4) (1,457) 197 (166) (306) (23) --- --- --
MTM on CRE (3, 5, 6) (555) (480) (649) (1,214) (387) (354) (594) (191)
MTM on SIVs (212) 11 (2 004)
(2,004) (1 064)
(1,064) (47) 50 (40) (43)
CVA on Citi Liabilities at
Fair Value Option --- --- --- 233 (18) (156) (64) (14)
Derivatives CVA (102) 52 (64) (945) 313 804 43 123
PE & Equity Inv. (7) (129) 183 (430) (1,820) (1,117) (37) (20) 26
Gross Revenue Marks (13,735) (6,565) (6,351) (12,256) (5,414) 451 1,011 (254)
Non-credit Accretion (8) --- --- --- 190 541 501 502 450
Net Revenue Marks (13,735) (6,565) (6,351) (12,066) (4,873) 952 1,513 196
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, $6 million in 4Q’09 and $6.3 million gain in 3Q’09 arising from
the ARS legal settlements. (5) Excludes positions in SIVs. (6) 4Q’09: $8 million booked in BAM, $(199) million booked in SAP. (7) 4Q’09: $8 million
booked in BAM, $18 million in SAP. (8) Booked in the net interest revenue line.
Note: Totals may not sum due to rounding. 35
Citigroup – Credit Value Adjustment
($MM)
Derivatives (1) Citi Debt at Fair Value
CVA Balance P&L Impact CVA Balance P&L Impact
Citicorp Citicorp
(2)
3Q'09 4Q'09 P&L Impact 3Q'09 4Q'09 P&L Impact
Holdings Holdings
268 258 (10) 28
13
(517) (384) 133
(14)
3Q'09 4Q'09 P&L Impact
3Q'09
3Q 09 4Q'09
4Q 09 P&L Impact
Payables Receivables
(1) Credit value adjustment on the fair value of derivative instruments with non-monoline counterparties.
(2) Includes decline of $1.1 billion due to tightening in Citi’s credit spreads in the fourth quarter and a $0.8 billion adjustment to the CVA balance,
reflecting correction of prior periods. 36
Summary of Press Release Disclosed Items
$MM 4Q'08 4Q'09
Pre-tax After-tax Pre-tax After-tax
1, 8 1, 8
North America (2,380) (2,062) - -
1 1
EMEA (20) (13) - -
1, 8 1, 8
Latin America (4,298) (4,147) - -
1 1, 6
Asia (72) 79 - -
Regional Consumer Banking (6,770) (6,143) - -
1, 4 1, 4
North America (333) (202) - -
1 1
EMEA (133) (83) - -
1 1
Latin America (21) (13) - -
1 1, 6
Asia (85) 55 - -
Securities and Banking (572) (243) - -
1 1
North America (22) (13) - -
1 1
EMEA (23) (14) - -
1 1
Latin America (2) (1) - -
1 1, 6
Asia (15) 3 - -
Transaction Services (62) (25) - -
Total Citicorp (7,404) (6,411) - -
1, 2, 4 1, 2, 4
Brokerage and Asset Management (1,095) (695) - -
1, 3, 8 1, 3, 6, 8
Local Consumer Lending (3,483) (2,145) - -
Special Asset Pool - - - -
g
Total Citi Holdings ((4,578)) ((2,840)) - -
1, 5 1, 5 9, 10 9, 10
Corporate/Other (357) (189) (10,052) (6,193)
Total Citi (Continuing Ops) (12,339) (9,440) (10,052) (6,193)
1, 7 1, 7
Discontinued Operations 4,071 3,775 - -
(1) Restructuring charges of ($1,971) MM pre-tax (($1,217) MM after-tax). (2) Nikko Asset Management impairment charge of ($937) MM pre-tax ($(607) MM after-
t ) iin JJapan. (3) R
tax) Reserve ffor customer
t settlements
ttl t iin JJapan consumer fifinance off $(174) MM pre-tax
t ($(113) MM after-tax).
ft t ) (4) Impact
I t off the
th Auction
A ti R Rate
t
Securities settlement of $(174) MM pre-tax ($(106) MM after-tax). (5) Gain on sale of Citi Global Services Limited of $263 MM pre-tax ($192 MM after-tax). (6) Tax
benefit relating to restructuring of $994 MM in Japan consumer finance. (7) Gain on sale of German retail banking operations of $4,293 MM pre-tax ($3,919 MM
after-tax. Includes the benefit of a currency hedge put in place post-signing). (8) Goodwill impairment charge of $(9,568) MM pre-tax ($(8,727) MM after-tax).
(9) Loss of $(7,988) million pre-tax ($(4,921) million after-tax) on debt extinguishment related to repayment of $20 billion of TARP trust preferred securities.
(10) Loss of $(2,064) million pre-tax ($(1,272) million after-tax) on removal of loss-sharing asset of ~$3.2B and cancelation of ~$1.1 B (carrying value)
of trust preferred securities related to the exit from the loss-sharing agreement with the U.S. government. 37
Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP
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 FY2009
ManagedCitigroupRevenues $91,092
Less:NetimpactfromCardSecuritizationsͲCiticorp 6,672
Less:NetimpactfromCardSecuritizationsͲCitiHoldings 4,135
GAAPCitigroupRevenues $80,285
$B 4Q'09
Managed Citicorp N.A. RCB Avg. Loans
ManagedCiticorpN.A.RCBAvg.Loans $
$ 89.0
Less:SecuritizedLoansͲCiticorp 68.8
GAAPCiticorpN.A.RCBAvg.Loans $20.2
38
Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP
NON GAAP FINANCIAL MEASURES
$B 3Q'09 4Q'09
ManagedCitiHoldingsCardsAvg.Loans $59.8 $58.2
Less:SecuritizedLoansͲCitiHoldings 36.1 35.0
GAAP Citi Holdings Cards Avg. Loans
GAAPCitiHoldingsCardsAvg.Loans $
$ 23.7 $
$ 23.2
$MM 3Q'09
3Q 09 4Q'09
4Q 09
ManagedCitigroupConsumerNCLs $9,441 $8,905
Less:NetimpactfromSecuritizedNCLsͲCiticorp 1,876 1,727
Less:NetimpactfromSecuritizedNCLsͲCitiHoldings 1,137 1,118
GAAPCitigroupConsumerNCLs $6,428 $6,060
39
Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP
NON GAAP FINANCIAL MEASURES
$MM,exceptratio
(1)
TangibleCommonEquity(TCE)RatioCalculation 3Q'09 4Q'09
Citigroup'sTotalStockholders'Equity $140,842 $152,700
Less:PreferredStock 312 312
Common Equity
CommonEquity $
$140 530
140,530 $
$ 152 388
152,388
Less:GoodwillͲasreported 25,423 25,392
Less:IntangibleAssets(otherthanMSR's)Ͳasreported 8,957 8,714
Less:GoodwillandIntangibleAssetsͲrecordedasAssetsofDiscontinuedOperationsHeldForSale 3,856 Ͳ
Less:GoodwillandIntangibleAssetsͲrecordedasAssetsHeldforSale 1,377 Ͳ
Less:RelatedNetDeferredTaxes (1,381) 68
TangibleCommonEquity(TCE) $
$102,298 $
$ 118,214
RiskWeightedAssetsunderFederalReserveBoardCapitalRegulatoryGuidelines(RWA) 989,711 1,087,000
TCERatio(TCE/RWA) 10.3% 10.9%
$MM,exceptratio
Tier 1 Common Ratio Calculation
Tier1CommonRatioCalculation 3Q'09
3Q 09 4Q'09
4Q 09
Citigroupcommonstockholders’equity $140,530 $152,388
Less:NetunrealizedlossesonsecuritiesavailableͲforͲsale,netoftax (4,242) (4,347)
Less:Accumulatednetlossesoncashflowhedges,netoftax (4,177) (3,182)
Less:Pensionliabilityadjustment,netoftax (2,619) (3,461)
Less:Cumulativeeffectincludedinfairvalueoffinancialliabilitiesattributabletothechangeinown
creditworthiness,netoftax
dit thi t ft 1,862
1 862 760
Less:Disalloweddeferredtaxassets 21,917 25,958
Less:Intangibleassets:
Goodwill 26,436 25,392
Otherdisallowedintangibleassets 10,179 5,899
Less:Other 892 788
TotalTier1Common $90,282 $104,581
RiskWeightedAssetsunderFederalReserveBoardCapitalRegulatoryGuidelines(RWA) 989,711 1,087,000
Tier1CommonRatio(TotalTier1Common/RWA) 9.1% 9.6%
(1)Preliminary.
40
Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP
NON GAAP FINANCIAL MEASURES
Adjustments
Net Income Loan Loss Revenue Preferred TARP Rep./
Citicorp Corp/Other Total Reserves Marks Exchange Loss sharing Net Income
2006 $12.5 ($1.2) $11.3 ($0.1) $11.4
2007 14.6 (2.7) 11.9 (0.7) 0.7 12.0
2009 14.7 (7.6) 7.1 (1.7) (0.8) 0.9 (6.2) 15.0
ROA
2006 1.0%
2007 0.9%
2009 1.2%
Average
2006/2007 0.9%
41
Certain statements in this document are “forward-looking
and changes
g in circumstances. Actual results may
y differ materially
y
42