| CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | CONDENSED CONSOLIDATING FINANCIAL STATEMENTS Citigroup amended its Registration Statement on Form S-3 on file with the SEC (File No. 33-192302) to add its wholly owned subsidiary, Citigroup Global Markets Holdings Inc. (CGMHI), as a co-registrant. Any securities issued by CGMHI under the Form S-3 will be fully and unconditionally guaranteed by Citigroup. The following are the Condensed Consolidating Statements of Income and Comprehensive Income for the three and six months ended June 30, 2020 and 2019, Condensed Consolidating Balance Sheet as of June 30, 2020 and December 31, 2019 and Condensed Consolidating Statement of Cash Flows for the six months ended June 30, 2020 and 2019 for Citigroup Inc., the parent holding company (Citigroup parent company), CGMHI, other Citigroup subsidiaries and eliminations and total consolidating adjustments. “Other Citigroup subsidiaries and eliminations” includes all other subsidiaries of Citigroup, intercompany eliminations and income (loss) from discontinued operations. “Consolidating adjustments” includes Citigroup parent company elimination of distributed and undistributed income of subsidiaries and investment in subsidiaries. These Condensed Consolidating Financial Statements have been prepared and presented in accordance with SEC Regulation S-X Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” These Condensed Consolidating Financial Statements are presented for purposes of additional analysis, but should be considered in relation to the Consolidated Financial Statements of Citigroup taken as a whole. Condensed Consolidating Statements of Income and Comprehensive Income Three Months Ended June 30, 2020 In millions of dollars Citigroup parent company CGMHI Other Citigroup subsidiaries and eliminations Consolidating adjustments Citigroup consolidated Revenues Dividends from subsidiaries $ — $ — $ — $ — $ — Interest revenue — 1,309 13,280 — 14,589 Interest revenue—intercompany 1,067 282 (1,349) — — Interest expense 1,265 380 1,864 — 3,509 Interest expense—intercompany 142 621 (763) — — Net interest revenue $ (340) $ 590 $ 10,830 $ — $ 11,080 Commissions and fees $ — $ 1,771 $ 1,162 $ — $ 2,933 Commissions and fees—intercompany — 73 (73) — — Principal transactions (258) (2,993) 7,408 — 4,157 Principal transactions—intercompany 62 4,890 (4,952) — — Other income (14) 211 1,399 — 1,596 Other income—intercompany 8 13 (21) — — Total non-interest revenues $ (202) $ 3,965 $ 4,923 $ — $ 8,686 Total revenues, net of interest expense $ (542) $ 4,555 $ 15,753 $ — $ 19,766 Provisions for credit losses and for benefits and claims $ — $ 1 $ 7,902 $ — $ 7,903 Operating expenses Compensation and benefits $ 105 $ 1,345 $ 4,174 $ — $ 5,624 Compensation and benefits—intercompany 1 — (1) — — Other operating 9 594 4,188 — 4,791 Other operating—intercompany 4 375 (379) — — Total operating expenses $ 119 $ 2,314 $ 7,982 $ — $ 10,415 Equity in undistributed income of subsidiaries $ 2,107 $ — $ — $ (2,107) $ — Income (loss) from continuing operations before income taxes $ 1,446 $ 2,240 $ (131) $ (2,107) $ 1,448 Provision (benefit) for income taxes 130 715 (714) — 131 Income (loss) from continuing operations $ 1,316 $ 1,525 $ 583 $ (2,107) $ 1,317 Income (loss) from discontinued operations, net of taxes — — (1) — (1) Net income before attribution of noncontrolling interests $ 1,316 $ 1,525 $ 582 $ (2,107) $ 1,316 Noncontrolling interests — — — — — Net income (loss) $ 1,316 $ 1,525 $ 582 $ (2,107) $ 1,316 Comprehensive income Add: Other comprehensive income (loss) $ (824) $ (1,429) $ (1,223) $ 2,652 $ (824) Total Citigroup comprehensive income (loss) $ 492 $ 96 $ (641) $ 545 $ 492 Add: Other comprehensive income attributable to noncontrolling interests $ — $ — $ 39 $ — $ 39 Add: Net income attributable to noncontrolling interests — — — — — Total comprehensive income (loss) $ 492 $ 96 $ (602) $ 545 $ 531 Condensed Consolidating Statements of Income and Comprehensive Income Six Months Ended June 30, 2020 In millions of dollars Citigroup parent company CGMHI Other Citigroup subsidiaries and eliminations Consolidating adjustments Citigroup consolidated Revenues Dividends from subsidiaries $ 105 $ — $ — $ (105) $ — Interest revenue — 3,212 28,516 — 31,728 Interest revenue—intercompany 2,211 623 (2,834) — — Interest expense 2,408 1,521 5,227 — 9,156 Interest expense—intercompany 390 1,403 (1,793) — — Net interest revenue $ (587) $ 911 $ 22,248 $ — $ 22,572 Commissions and fees $ — $ 3,321 $ 2,633 $ — $ 5,954 Commissions and fees—intercompany (19) 237 (218) — — Principal transactions (930) 3,261 7,087 — 9,418 Principal transactions—intercompany 564 499 (1,063) — — Other income 66 260 2,227 — 2,553 Other income—intercompany (62) 26 36 — — Total non-interest revenues $ (381) $ 7,604 $ 10,702 $ — $ 17,925 Total revenues, net of interest expense $ (863) $ 8,515 $ 32,950 $ (105) $ 40,497 Provisions for credit losses and for benefits and claims $ — $ — $ 14,930 $ — $ 14,930 Operating expenses Compensation and benefits $ 133 $ 2,641 $ 8,504 $ — $ 11,278 Compensation and benefits—intercompany 75 — (75) — — Other operating 32 1,192 8,507 — 9,731 Other operating—intercompany 8 857 (865) — — Total operating expenses $ 248 $ 4,690 $ 16,071 $ — $ 21,009 Equity in undistributed income of subsidiaries $ 4,475 $ — $ — $ (4,475) $ — Income (loss) from continuing operations before income taxes $ 3,364 $ 3,825 $ 1,949 $ (4,580) $ 4,558 Provision (benefit) for income taxes (474) 1,052 129 — 707 Income (loss) from continuing operations $ 3,838 $ 2,773 $ 1,820 $ (4,580) $ 3,851 Income (loss) from discontinued operations, net of taxes — — (19) — (19) Net income before attribution of noncontrolling interests $ 3,838 $ 2,773 $ 1,801 $ (4,580) $ 3,832 Noncontrolling interests — — (6) — (6) Net income (loss) $ 3,838 $ 2,773 $ 1,807 $ (4,580) $ 3,838 Comprehensive income Add: Other comprehensive income (loss) $ 2,973 $ 328 $ 12,236 $ (12,564) $ 2,973 Total Citigroup comprehensive income (loss) $ 6,811 $ 3,101 $ 14,043 $ (17,144) $ 6,811 Add: Other comprehensive income attributable to noncontrolling interests $ — $ — $ (12) $ — $ (12) Add: Net income attributable to noncontrolling interests — — (6) — (6) Total comprehensive income (loss) $ 6,811 $ 3,101 $ 14,025 $ (17,144) $ 6,793 Condensed Consolidating Statements of Income and Comprehensive Income Three Months Ended June 30, 2019 In millions of dollars Citigroup parent company CGMHI Other Citigroup subsidiaries and eliminations Consolidating adjustments Citigroup consolidated Revenues Dividends from subsidiaries $ 5,049 $ — $ — $ (5,049) $ — Interest revenue — 3,184 16,528 — 19,712 Interest revenue—intercompany 1,327 518 (1,845) — — Interest expense 1,278 1,911 4,573 — 7,762 Interest expense—intercompany 202 1,152 (1,354) — — Net interest revenue $ (153) $ 639 $ 11,464 $ — $ 11,950 Commissions and fees $ — $ 1,309 $ 1,572 $ — $ 2,881 Commissions and fees—intercompany — 94 (94) — — Principal transactions (565) 1,142 1,297 — 1,874 Principal transactions—intercompany 791 (675) (116) — — Other income (368) 498 1,923 — 2,053 Other income—intercompany 9 14 (23) — — Total non-interest revenues $ (133) $ 2,382 $ 4,559 $ — $ 6,808 Total revenues, net of interest expense $ 4,763 $ 3,021 $ 16,023 $ (5,049) $ 18,758 Provisions for credit losses and for benefits and claims $ — $ — $ 2,093 $ — $ 2,093 Operating expenses Compensation and benefits $ 4 $ 1,166 $ 4,211 $ — $ 5,381 Compensation and benefits—intercompany 17 — (17) — — Other operating 9 540 4,570 — 5,119 Other operating—intercompany 5 582 (587) — — Total operating expenses $ 35 $ 2,288 $ 8,177 $ — $ 10,500 Equity in undistributed income of subsidiaries $ (146) $ — $ — $ 146 $ — Income (loss) from continuing operations before income $ 4,582 $ 733 $ 5,753 $ (4,903) $ 6,165 Provision (benefit) for income taxes (217) — 8 1,582 — 1,373 Income (loss) from continuing operations $ 4,799 $ 725 $ 4,171 $ (4,903) $ 4,792 Income (loss) from discontinued operations, net of taxes — — 17 — 17 Net income (loss) before attribution of noncontrolling interests $ 4,799 $ 725 $ 4,188 $ (4,903) $ 4,809 Noncontrolling interests — — 10 — 10 Net income (loss) $ 4,799 $ 725 $ 4,178 $ (4,903) $ 4,799 Comprehensive income Add: Other comprehensive income (loss) $ 1,105 $ (12) $ 734 $ (722) $ 1,105 Total Citigroup comprehensive income (loss) $ 5,904 $ 713 $ 4,912 $ (5,625) $ 5,904 Add: Other comprehensive income attributable to noncontrolling interests $ — $ — — $ 20 $ — $ 20 Add: Net income attributable to noncontrolling interests — — 10 — 10 Total comprehensive income (loss) $ 5,904 $ 713 $ 4,942 $ (5,625) $ 5,934 Condensed Consolidating Statements of Income and Comprehensive Income Six Months Ended June 30, 2019 In millions of dollars Citigroup parent company CGMHI Other Citigroup subsidiaries and eliminations Consolidating adjustments Citigroup consolidated Revenues Dividends from subsidiaries $ 14,216 $ — $ — $ (14,216) $ — Interest revenue — 5,756 33,032 — 38,788 Interest revenue—intercompany 2,652 1,021 (3,673) — — Interest expense 2,549 3,735 8,795 — 15,079 Interest expense—intercompany 514 2,227 (2,741) — — Net interest revenue $ (411) $ 815 $ 23,305 $ — $ 23,709 Commissions and fees $ — $ 2,616 $ 3,191 $ — $ 5,807 Commissions and fees—intercompany (1) 215 (214) — — Principal transactions (1,390) 108 5,960 — 4,678 Principal transactions—intercompany 1,238 1,361 (2,599) — — Other income (49) 597 2,592 — 3,140 Other income—intercompany (25) 56 (31) — — Total non-interest revenues $ (227) $ 4,953 $ 8,899 $ — $ 13,625 Total revenues, net of interest expense $ 13,578 $ 5,768 $ 32,204 $ (14,216) $ 37,334 Provisions for credit losses and for benefits and claims $ — $ — $ 4,073 $ — $ 4,073 Operating expenses Compensation and benefits $ 37 $ 2,450 $ 8,552 $ — $ 11,039 Compensation and benefits—intercompany 43 — (43) — — Other operating 14 1,093 8,938 — 10,045 Other operating—intercompany 10 1,164 (1,174) — — Total operating expenses $ 104 $ 4,707 $ 16,273 $ — $ 21,084 Equity in undistributed income of subsidiaries $ (4,349) $ — $ — $ 4,349 $ — Income (loss) from continuing operations before income $ 9,125 $ 1,061 $ 11,858 $ (9,867) $ 12,177 Provision (benefit) for income taxes (384) 148 2,884 — 2,648 Income (loss) from continuing operations $ 9,509 $ 913 $ 8,974 $ (9,867) $ 9,529 Income (loss) from discontinued operations, net of taxes — — 15 — 15 Net income (loss) before attribution of noncontrolling interests $ 9,509 $ 913 $ 8,989 $ (9,867) $ 9,544 Noncontrolling interests — — 35 — 35 Net income (loss) $ 9,509 $ 913 $ 8,954 $ (9,867) $ 9,509 Comprehensive income Add: Other comprehensive income (loss) $ 1,967 $ (301) $ 1,733 $ (1,432) $ 1,967 Total Citigroup comprehensive income (loss) $ 11,476 $ 612 $ 10,687 $ (11,299) $ 11,476 Add: Other comprehensive income attributable to noncontrolling interests $ — $ — $ 7 $ — $ 7 Add: Net income attributable to noncontrolling interests — — 35 — 35 Total comprehensive income (loss) $ 11,476 $ 612 $ 10,729 $ (11,299) $ 11,518 Condensed Consolidating Balance Sheet June 30, 2020 In millions of dollars Citigroup parent company CGMHI Other Citigroup subsidiaries and eliminations Consolidating adjustments Citigroup consolidated Assets Cash and due from banks $ — $ 403 $ 22,486 $ — $ 22,889 Cash and due from banks—intercompany 23 3,325 (3,348) — — Deposits with banks, net of allowance — 4,784 282,100 — 286,884 Deposits with banks—intercompany 3,000 8,145 (11,145) — — Securities borrowed and purchased under resale agreements — 221,779 61,138 — 282,917 Securities borrowed and purchased under resale agreements—intercompany — 24,679 (24,679) — — Trading account assets 250 223,733 138,328 — 362,311 Trading account assets—intercompany 261 3,786 (4,047) — — Investments, net of allowance 1 458 432,794 — 433,253 Loans, net of unearned income — 2,922 682,370 — 685,292 Loans, net of unearned income—intercompany — — — — — Allowance for credit losses on loans (ACLL) — — (26,420) — (26,420) Total loans, net $ — $ 2,922 $ 655,950 $ — $ 658,872 Advances to subsidiaries $ 151,652 $ — $ (151,652) $ — $ — Investments in subsidiaries 205,625 — — (205,625) — Other assets, net of allowance (1) 13,299 64,181 108,109 — 185,589 Other assets—intercompany 3,535 50,952 (54,487) — — Total assets $ 377,646 $ 609,147 $ 1,451,547 $ (205,625) $ 2,232,715 Liabilities and equity Deposits $ — $ — $ 1,233,660 $ — $ 1,233,660 Deposits—intercompany — — — — — Securities loaned and sold under repurchase agreements — 199,525 16,197 — 215,722 Securities loaned and sold under repurchase agreements—intercompany — 51,179 (51,179) — — Trading account liabilities 11 100,338 48,915 — 149,264 Trading account liabilities—intercompany 141 2,745 (2,886) — — Short-term borrowings 25 12,170 27,961 — 40,156 Short-term borrowings—intercompany — 16,888 (16,888) — — Long-term debt 169,036 44,874 65,865 — 279,775 Long-term debt—intercompany — 76,880 (76,880) — — Advances from subsidiaries 13,678 — (13,678) — — Other liabilities, including allowance 3,139 59,236 59,461 — 121,836 Other liabilities—intercompany (6) 9,530 (9,524) — — Stockholders’ equity 191,622 35,782 170,523 (205,625) 192,302 Total liabilities and equity $ 377,646 $ 609,147 $ 1,451,547 $ (205,625) $ 2,232,715 (1) Other assets for Citigroup parent company at June 30, 2020 included $34.4 billion of placements to Citibank and its branches, of which $29.2 billion had a remaining term of less than 30 days. Condensed Consolidating Balance Sheet December 31, 2019 In millions of dollars Citigroup parent company CGMHI Other Citigroup subsidiaries and eliminations Consolidating adjustments Citigroup consolidated Assets Cash and due from banks $ — $ 586 $ 23,381 $ — $ 23,967 Cash and due from banks—intercompany 21 5,095 (5,116) — — Deposits with banks — 4,050 165,902 — 169,952 Deposits with banks—intercompany 3,000 6,710 (9,710) — — Securities borrowed and purchased under resale agreements — 195,537 55,785 — 251,322 Securities borrowed and purchased under resale agreements—intercompany — 21,446 (21,446) — — Trading account assets 286 152,115 123,739 — 276,140 Trading account assets—intercompany 426 5,858 (6,284) — — Investments, net of allowance 1 541 368,021 — 368,563 Loans, net of unearned income — 2,497 696,986 — 699,483 Loans, net of unearned income—intercompany — — — — — Allowance for credit losses on loans (ACLL) — — (12,783) — (12,783) Total loans, net $ — $ 2,497 $ 684,203 $ — $ 686,700 Advances to subsidiaries $ 144,587 $ — $ (144,587) $ — $ — Investments in subsidiaries 202,116 — — (202,116) — Other assets, net of allowance (1) 12,377 54,784 107,353 — 174,514 Other assets—intercompany 2,799 45,588 (48,387) — — Total assets $ 365,613 $ 494,807 $ 1,292,854 $ (202,116) $ 1,951,158 Liabilities and equity Deposits $ — $ — $ 1,070,590 $ — $ 1,070,590 Deposits—intercompany — — — — — Securities loaned and sold under repurchase agreements — 145,473 20,866 — 166,339 Securities loaned and sold under repurchase agreements—intercompany — 36,581 (36,581) — — Trading account liabilities 1 80,100 39,793 — 119,894 Trading account liabilities—intercompany 379 5,109 (5,488) — — Short-term borrowings 66 11,096 33,887 — 45,049 Short-term borrowings—intercompany — 17,129 (17,129) — — Long-term debt 150,477 39,578 58,705 — 248,760 Long-term debt—intercompany — 66,791 (66,791) — — Advances from subsidiaries 20,503 — (20,503) — — Other liabilities, including allowance 937 51,777 53,866 — 106,580 Other liabilities—intercompany 8 8,414 (8,422) — — Stockholders’ equity 193,242 32,759 170,061 (202,116) 193,946 Total liabilities and equity $ 365,613 $ 494,807 $ 1,292,854 $ (202,116) $ 1,951,158 (1) Other assets for Citigroup parent company at December 31, 2019 included $35.1 billion of placements to Citibank and its branches, of which $24.9 billion had a remaining term of less than 30 days. Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2020 In millions of dollars Citigroup parent company CGMHI Other Citigroup subsidiaries and eliminations Consolidating adjustments Citigroup consolidated Net cash provided by (used in) operating activities of continuing operations $ 2,857 $ (53,782) $ 31,717 $ — $ (19,208) Cash flows from investing activities of continuing operations Purchases of investments $ — $ — $ (207,701) $ — $ (207,701) Proceeds from sales of investments — — 86,191 — 86,191 Proceeds from maturities of investments — — 53,909 — 53,909 Change in loans — — 7,943 — 7,943 Proceeds from sales and securitizations of loans — — 826 — 826 Change in securities borrowed and purchased under agreements to resell — (29,475) (2,120) — (31,595) Changes in investments and advances—intercompany (7,371) (4,890) 12,261 — — Other investing activities — — (1,262) — (1,262) Net cash provided by (used in) investing activities of continuing operations $ (7,371) $ (34,365) $ (49,953) $ — $ (91,689) Cash flows from financing activities of continuing operations Dividends paid $ (2,679) $ — $ — $ — $ (2,679) Issuance of preferred stock 1,500 — — — 1,500 Redemption of preferred stock (1,500) — — — (1,500) Treasury stock acquired (2,925) — — — (2,925) Proceeds (repayments) from issuance of long-term debt, net 17,353 8,907 (86) — 26,174 Proceeds (repayments) from issuance of long-term debt—intercompany, net 6,815 (6,815) — — Change in deposits — — 163,070 — 163,070 Change in securities loaned and sold under agreements to repurchase — 68,650 (19,267) — 49,383 Change in short-term borrowings — 1,074 (5,967) — (4,893) Net change in short-term borrowings and other advances—intercompany (6,826) 3,035 3,791 — — Capital contributions from (to) parent — — — — — — Other financing activities (407) (118) 118 — (407) Net cash provided by (used in) financing activities of continuing operations $ 4,516 $ 88,363 $ 134,844 $ — $ 227,723 Effect of exchange rate changes on cash and due from banks $ — $ — $ (972) $ — $ (972) Change in cash and due from banks and deposits with banks $ 2 $ 216 $ 115,636 $ — $ 115,854 Cash and due from banks and deposits with banks at beginning of period 3,021 16,441 174,457 — 193,919 Cash and due from banks and deposits with banks at end of period $ 3,023 $ 16,657 $ 290,093 $ — $ 309,773 Cash and due from banks $ 23 $ 3,728 $ 19,138 $ — $ 22,889 Deposits with banks, net of allowance 3,000 12,929 270,955 — 286,884 Cash and due from banks and deposits with banks at end of period $ 3,023 $ 16,657 $ 290,093 $ — $ 309,773 Supplemental disclosure of cash flow information for continuing operations Cash paid during the period for income taxes $ 39 $ 174 $ 2,330 $ — $ 2,543 Cash paid during the period for interest 1,757 3,006 3,988 — 8,751 Non-cash investing activities Transfers to loans HFS from loans $ — $ — $ 1,036 $ — $ 1,036 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2019 In millions of dollars Citigroup parent company CGMHI Other Citigroup subsidiaries and eliminations Consolidating adjustments Citigroup consolidated Net cash provided by (used in) operating activities of continuing operations $ 17,500 $ (39,793) $ (15,463) $ — $ (37,756) Cash flows from investing activities of continuing operations Purchases of investments $ — $ — $ (118,132) $ — $ (118,132) Proceeds from sales of investments 4 — 63,591 — 63,595 Proceeds from maturities of investments — — 57,684 — 57,684 Change in loans — — (7,803) — (7,803) Proceeds from sales and securitizations of loans — — 2,249 — 2,249 Change in securities borrowed and purchased under agreements to resell — 9,511 1,404 — 10,915 Changes in investments and advances—intercompany (3,336) (10,607) 13,943 — — Other investing activities — (32) (3,178) — (3,210) Net cash provided by (used in) investing activities of continuing operations $ (3,332) $ (1,128) $ 9,758 $ — $ 5,298 Cash flows from financing activities of continuing operations Dividends paid $ (2,650) $ — $ — $ — $ (2,650) Redemption of preferred stock (480) — — — (480) Treasury stock acquired (7,518) — — — (7,518) Proceeds (repayments) from issuance of long-term debt, net 5,418 10,817 (2,814) — 13,421 Proceeds (repayments) from issuance of long-term debt—intercompany, net — (3,941) 3,941 — — Change in deposits — — 32,437 — 32,437 Change in securities loaned and sold under agreements to repurchase — 20,903 (17,538) — 3,365 Change in short-term borrowings — 4,977 5,119 — 10,096 Net change in short-term borrowings and other advances—intercompany (8,584) 7,088 1,496 — — Other financing activities (359) — — — (359) Net cash provided by (used in) financing activities of continuing operations $ (14,173) $ 39,844 $ 22,641 $ — $ 48,312 Effect of exchange rate changes on cash and due from banks $ — $ — $ (716) $ — $ (716) Change in cash and due from banks and deposits with banks $ (5) $ (1,077) $ 16,220 $ — $ 15,138 Cash and due from banks and deposits with banks at beginning of period 3,020 15,677 169,408 — 188,105 Cash and due from banks and deposits with banks at end of period $ 3,015 $ 14,600 $ 185,628 $ — $ 203,243 Cash and due from banks $ 15 — $ 4,479 $ 20,503 $ — $ 24,997 Deposits with banks, net of allowance 3,000 10,121 165,125 — 178,246 Cash and due from banks and deposits with banks at end of period $ 3,015 $ 14,600 $ 185,628 $ — $ 203,243 Supplemental disclosure of cash flow information for continuing operations Cash paid during the period for income taxes $ 154 $ 119 $ 2,541 $ — $ 2,814 Cash paid during the period for interest 1,753 6,577 5,670 — 14,000 Non-cash investing activities Transfers to loans HFS from loans $ — $ — $ 3,600 $ — $ 3,600 |
