Exhibit 99.2
CITIGROUP—QUARTERLY FINANCIAL DATA SUPPLEMENT 1Q06 |
| Page Number | ||||
---|---|---|---|---|---|
Citigroup Consolidated Financial Summary | 1 | ||||
Segment Income: | |||||
Product View | 2 | ||||
Regional View | 3 | ||||
Segment Net Revenues: | |||||
Product View | 4 | ||||
Regional View | 5 | ||||
Consolidated Statement of Income | 6 | ||||
Consolidated Balance Sheet | 7 | ||||
Segment Detail | |||||
Global Consumer: | 8 | ||||
U.S. | |||||
U.S. Cards | 9—10 | ||||
U.S. Retail Distribution | 11—12 | ||||
U.S. Consumer Lending | 13—14 | ||||
U.S. Commercial Business | 15 | ||||
International | |||||
International Cards | 16—17 | ||||
International Consumer Finance | 18—19 | ||||
International Retail Banking | 20—21 | ||||
Corporate and Investment Banking: | 22 | ||||
Income Statement | 23 | ||||
Revenue Details | 24 | ||||
Capital Markets and Banking | 25 | ||||
Transaction Services | 26 | ||||
Global Wealth Management: | 27 | ||||
Smith Barney | 28 | ||||
Private Bank | 29 | ||||
Alternative Investments | 30 | ||||
Citigroup Supplemental Detail | |||||
Average Balances—Yields | 31 | ||||
Return on Capital | 32 | ||||
Consumer Loan Delinquency Amounts, Net Credit Losses and Ratios | 33 | ||||
Allowance for Credit Losses: | |||||
Total Citigroup | 34 | ||||
Consumer Loans | 35 | ||||
Corporate Loans | 36 | ||||
Components of Provision for Loan Losses | 37 | ||||
Non-Performing Assets | 38 |
CITIGROUP—FINANCIAL SUMMARY
(In millions of dollars, except per share amounts)
Citigroup, the leading global financial services company, has some 200 million customer accounts and does business in more than 100
countries, providing consumers, corporations, governments and institutions a complete range of financial products and services.
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Income from Continuing Operations | $ | 5,115 | $ | 4,731 | $ | 4,988 | $ | 4,972 | $ | 5,555 | 9 | % | ||||||
Discontinued Operations, After-tax | 326 | 342 | 2,155 | 2,009 | 84 | |||||||||||||
Cumulative Effect of Accounting Change | — | — | — | (49 | ) | — | ||||||||||||
Net Income | $ | 5,441 | $ | 5,073 | $ | 7,143 | $ | 6,932 | $ | 5,639 | 4 | % | ||||||
Diluted Earnings Per Share: | ||||||||||||||||||
Income from Continuing Operations | $ | 0.98 | $ | 0.91 | $ | 0.97 | $ | 0.98 | $ | 1.11 | 13 | % | ||||||
Net Income | $ | 1.04 | $ | 0.97 | $ | 1.38 | $ | 1.37 | $ | 1.12 | 8 | % | ||||||
Adjusted weighted average common shares applicable to Diluted EPS (in millions) | 5,226.0 | 5,208.1 | 5,146.0 | 5,061.3 | 5,007.9 | |||||||||||||
Preferred Dividends—Diluted | $ | 17 | $ | 17 | $ | 17 | $ | 17 | $ | 16 | ||||||||
Common Shares Outstanding, at period end (in millions) | 5,202.2 | 5,170.1 | 5,059.0 | 4,980.2 | 4,971.2 | |||||||||||||
Tier 1 Capital Ratio | 8.78 | % | 8.71 | % | 9.12 | % | 8.79 | % | 8.5 | %* | ||||||||
Total Capital Ratio | 12.03 | % | 11.87 | % | 12.37 | % | 12.02 | % | 11.7 | %* | ||||||||
Leverage Ratio | 5.19 | % | 5.19 | % | 5.53 | % | 5.35 | % | 5.2 | %* | ||||||||
Total Assets, at period end (in billions) | $ | 1,489.9 | $ | 1,547.8 | $ | 1,472.8 | $ | 1,494.0 | $ | 1,586.2 | * | |||||||
Stockholders' Equity, at period end (in billions) | $ | 110.5 | $ | 113.0 | $ | 111.8 | $ | 112.5 | $ | 114.4 | * | |||||||
Equity and Trust Securities, at period end (in billions) | $ | 116.9 | $ | 119.5 | $ | 118.2 | $ | 118.8 | $ | 120.6 | * | |||||||
Book Value Per Share, at period end | $ | 21.03 | $ | 21.65 | $ | 21.88 | $ | 22.37 | $ | 22.82 | * | |||||||
Return on Common Equity (Net Income) | 20.3 | % | 18.4 | % | 25.4 | % | 25.0 | % | 20.3 | % | ||||||||
Return on Risk Capital (Income from Continuing Operations) | 40 | % | 36 | % | 37 | % | 37 | % | 41 | % | ||||||||
- *
- Preliminary
1
CITIGROUP—NET INCOME
PRODUCT VIEW
(In millions of dollars)
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Global Consumer: | ||||||||||||||||||||
U.S. Cards | $ | 778 | $ | 735 | $ | 797 | $ | 444 | $ | 926 | 19 | % | ||||||||
U.S. Retail Distribution | 564 | 478 | 319 | 391 | 515 | (9 | %) | |||||||||||||
U.S. Consumer Lending | 486 | 507 | 487 | 458 | 437 | (10 | %) | |||||||||||||
U.S. Commercial Business | 252 | 134 | 222 | 121 | 126 | (50 | %) | |||||||||||||
Total U.S. Consumer(1) | 2,080 | 1,854 | 1,825 | 1,414 | 2,004 | (4 | %) | |||||||||||||
International Cards | 302 | 331 | 383 | 357 | 291 | (4 | %) | |||||||||||||
International Consumer Finance | 139 | 177 | 152 | 174 | 168 | 21 | % | |||||||||||||
International Retail Banking | 498 | 593 | 427 | 565 | 677 | 36 | % | |||||||||||||
Total International Consumer | 939 | 1,101 | 962 | 1,096 | 1,136 | 21 | % | |||||||||||||
Other | (176 | ) | (58 | ) | (64 | ) | (76 | ) | (67 | ) | 62 | % | ||||||||
Total Global Consumer | 2,843 | 2,897 | 2,723 | 2,434 | 3,073 | 8 | % | |||||||||||||
Corporate and Investment Banking: | ||||||||||||||||||||
Capital Markets and Banking | 1,439 | 1,043 | 1,424 | 1,421 | 1,618 | 12 | % | |||||||||||||
Transaction Services | 245 | 288 | 327 | 275 | 323 | 32 | % | |||||||||||||
Other(2) | (5 | ) | 41 | 46 | 351 | (12 | ) | NM | ||||||||||||
Total Corporate and Investment Banking | 1,679 | 1,372 | 1,797 | 2,047 | 1,929 | 15 | % | |||||||||||||
Global Wealth Management: | ||||||||||||||||||||
Smith Barney | 197 | 239 | 227 | 208 | 168 | (15 | %) | |||||||||||||
Private Bank | 122 | 83 | 79 | 89 | 119 | (2 | %) | |||||||||||||
Total Global Wealth Management | 319 | 322 | 306 | 297 | 287 | (10 | %) | |||||||||||||
Alternative Investments | 362 | 385 | 339 | 351 | 353 | (2 | %) | |||||||||||||
Corporate/Other | (88 | ) | (245 | ) | (177 | ) | (157 | ) | (87 | ) | 1 | % | ||||||||
Income From Continuing Operations | 5,115 | 4,731 | 4,988 | 4,972 | 5,555 | 9 | % | |||||||||||||
Discontinued Operations(3)(4) | 326 | 342 | 2,155 | 2,009 | 84 | |||||||||||||||
Cumulative Effect of Accounting Change(5) | — | — | — | (49 | ) | — | ||||||||||||||
Net Income | $ | 5,441 | $ | 5,073 | $ | 7,143 | $ | 6,932 | $ | 5,639 | 4 | % |
- (1)
- U.S. disclosure includes Canada and Puerto Rico.
- (2)
- The 2005 fourth quarter includes a $375 million after-tax release of WorldCom Settlement and Litigation Reserves.
- (3)
- Discontinued Operations includes the operations from the Company's January 31, 2005 announced agreement for the sale of Citigroup's Travelers Life & Annuity, and substantially all of Citigroup's international insurance business, to MetLife, Inc. The transaction closed during the 2005 third quarter and resulted in a $3.4 billion ($2.1 billion after-tax) gain.
- (4)
- Discontinued Operations includes the operations from the Company's June 24, 2005 announced agreement for the sale of substantially all of Citigroup's Asset Management business to Legg Mason, Inc. The transaction closed during the 2005 fourth quarter and resulted in a $3.4 billion ($2.1 billion after-tax) gain.
- (5)
- Cumulative Effect of Accounting Change represents the adoption of FIN 47, "Accounting for Conditional Asset Retirement Obligations, an interpretation of SFAS No. 143". This pronouncement is applicable to real estate leasing agreements that required Citigroup to restore the leased space back to its original condition upon termination of the lease.
NM Not meaningful
Reclassified to conform to the current period's presentation.
2
CITIGROUP—NET INCOME
REGIONAL VIEW
(In millions of dollars)
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
U.S.(1) | ||||||||||||||||||||
Global Consumer | $ | 1,904 | $ | 1,796 | $ | 1,761 | $ | 1,338 | $ | 1,937 | 2 | % | ||||||||
Corporate and Investment Banking | 893 | 462 | 637 | 958 | 515 | (42 | %) | |||||||||||||
Global Wealth Management | 273 | 315 | 288 | 265 | 228 | (16 | %) | |||||||||||||
Total U.S. | 3,070 | 2,573 | 2,686 | 2,561 | 2,680 | (13 | %) | |||||||||||||
Mexico | ||||||||||||||||||||
Global Consumer | 277 | 368 | 511 | 276 | 358 | 29 | % | |||||||||||||
Corporate and Investment Banking | 83 | 76 | 177 | 114 | 78 | (6 | %) | |||||||||||||
Global Wealth Management | 13 | 10 | 12 | 9 | 8 | (38 | %) | |||||||||||||
Total Mexico | 373 | 454 | 700 | 399 | 444 | 19 | % | |||||||||||||
Europe, Middle East and Africa (EMEA) | ||||||||||||||||||||
Global Consumer | 122 | 124 | (154 | ) | 282 | 185 | 52 | % | ||||||||||||
Corporate and Investment Banking | 188 | 336 | 358 | 248 | 635 | NM | ||||||||||||||
Global Wealth Management | (1 | ) | 3 | 8 | (2 | ) | 3 | NM | ||||||||||||
Total EMEA | 309 | 463 | 212 | 528 | 823 | NM | ||||||||||||||
Japan | ||||||||||||||||||||
Global Consumer | 175 | 188 | 169 | 174 | 188 | 7 | % | |||||||||||||
Corporate and Investment Banking | 48 | 54 | 58 | 338 | 85 | 77 | % | |||||||||||||
Global Wealth Management | (8 | ) | (45 | ) | (29 | ) | — | — | 100 | % | ||||||||||
Total Japan | 215 | 197 | 198 | 512 | 273 | 27 | % | |||||||||||||
Asia (excluding Japan) | ||||||||||||||||||||
Global Consumer | 311 | 341 | 375 | 323 | 347 | 12 | % | |||||||||||||
Corporate and Investment Banking | 322 | 249 | 382 | 295 | 414 | 29 | % | |||||||||||||
Global Wealth Management | 35 | 31 | 26 | 24 | 45 | 29 | % | |||||||||||||
Total Asia | 668 | 621 | 783 | 642 | 806 | 21 | % | |||||||||||||
Latin America | ||||||||||||||||||||
Global Consumer | 54 | 80 | 61 | 41 | 58 | 7 | % | |||||||||||||
Corporate and Investment Banking | 145 | 195 | 185 | 94 | 202 | 39 | % | |||||||||||||
Global Wealth Management | 7 | 8 | 1 | 1 | 3 | (57 | %) | |||||||||||||
Total Latin America | 206 | 283 | 247 | 136 | 263 | 28 | % | |||||||||||||
Alternative Investments | 362 | 385 | 339 | 351 | 353 | (2 | %) | |||||||||||||
Corporate / Other | (88 | ) | (245 | ) | (177 | ) | (157 | ) | (87 | ) | 1 | % | ||||||||
Income From Continuing Operations | 5,115 | 4,731 | 4,988 | 4,972 | 5,555 | 9 | % | |||||||||||||
Discontinued Operations | 326 | 342 | 2,155 | 2,009 | 84 | |||||||||||||||
Cumulative Effect of Accounting Change | — | — | — | (49 | ) | — | ||||||||||||||
Net Income | $ | 5,441 | $ | 5,073 | $ | 7,143 | $ | 6,932 | $ | 5,639 | 4 | % | ||||||||
Total International | $ | 1,771 | $ | 2,018 | $ | 2,140 | $ | 2,217 | $ | 2,609 | 47 | % |
- (1)
- Excludes Alternative Investments and Corporate / Other which are predominantly related to the U.S. The U.S. regional disclosure includes Canada and Puerto Rico. Global Consumer for the U.S includes Other Consumer.
NM Not meaningful
Reclassified to conform to the current period's presentation.
3
CITIGROUP—NET REVENUES
PRODUCT VIEW
(In millions of dollars)
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Global Consumer: | ||||||||||||||||||||
U.S. Cards | $ | 3,455 | $ | 3,263 | $ | 3,381 | $ | 2,725 | $ | 3,234 | (6 | %) | ||||||||
U.S. Retail Distribution | 2,457 | 2,360 | 2,339 | 2,359 | 2,296 | (7 | %) | |||||||||||||
U.S. Consumer Lending | 1,373 | 1,376 | 1,332 | 1,388 | 1,260 | (8 | %) | |||||||||||||
U.S. Commercial Business | 678 | 491 | 649 | 481 | 470 | (31 | %) | |||||||||||||
Total U.S. Consumer(1) | 7,963 | 7,490 | 7,701 | 6,953 | 7,260 | (9 | %) | |||||||||||||
International Cards | 1,105 | 1,176 | 1,209 | 1,360 | 1,280 | 16 | % | |||||||||||||
International Consumer Finance | 948 | 963 | 950 | 958 | 962 | 1 | % | |||||||||||||
International Retail Banking | 2,305 | 2,396 | 2,474 | 2,552 | 2,467 | 7 | % | |||||||||||||
Total International Consumer | 4,358 | 4,535 | 4,633 | 4,870 | 4,709 | 8 | % | |||||||||||||
Other | (203 | ) | (18 | ) | (13 | ) | (24 | ) | (14 | ) | 93 | % | ||||||||
Total Global Consumer | 12,118 | 12,007 | 12,321 | 11,799 | 11,955 | (1 | %) | |||||||||||||
Corporate and Investment Banking: | ||||||||||||||||||||
Capital Markets and Banking | 4,899 | 3,965 | 5,187 | 4,919 | 5,896 | 20 | % | |||||||||||||
Transaction Services | 1,137 | 1,191 | 1,246 | 1,317 | 1,382 | 22 | % | |||||||||||||
Other | 1 | — | 1 | — | 1 | — | ||||||||||||||
Total Corporate and Investment Banking | 6,037 | 5,156 | 6,434 | 6,236 | 7,279 | 21 | % | |||||||||||||
Global Wealth Management: | ||||||||||||||||||||
Smith Barney | 1,669 | 1,647 | 1,728 | 1,781 | 1,987 | 19 | % | |||||||||||||
Private Bank | 504 | 453 | 446 | 456 | 496 | (2 | %) | |||||||||||||
Total Global Wealth Management | 2,173 | 2,100 | 2,174 | 2,237 | 2,483 | 14 | % | |||||||||||||
Alternative Investments | 866 | 1,112 | 720 | 732 | 675 | (22 | %) | |||||||||||||
Corporate / Other | 2 | (206 | ) | (151 | ) | (225 | ) | (209 | ) | NM | ||||||||||
Total Net Revenues | $ | 21,196 | $ | 20,169 | $ | 21,498 | $ | 20,779 | $ | 22,183 | 5 | % |
- (1)
- U.S. disclosure includes Canada and Puerto Rico.
NM Not meaningful
Reclassified to conform to the current period's presentation.
4
CITIGROUP—NET REVENUES
REGIONAL VIEW
(In millions of dollars)
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
U.S.(1) | ||||||||||||||||||||
Global Consumer | $ | 7,760 | $ | 7,472 | $ | 7,688 | $ | 6,929 | $ | 7,246 | (7 | %) | ||||||||
Corporate and Investment Banking | 2,779 | 1,948 | 2,810 | 2,364 | 2,923 | 5 | % | |||||||||||||
Global Wealth Management | 1,872 | 1,852 | 1,923 | 1,981 | 2,154 | 15 | % | |||||||||||||
Total U.S. | 12,411 | 11,272 | 12,421 | 11,274 | 12,323 | (1 | %) | |||||||||||||
Mexico | ||||||||||||||||||||
Global Consumer | 960 | 1,055 | 1,139 | 1,219 | 1,149 | 20 | % | |||||||||||||
Corporate and Investment Banking | 159 | 170 | 236 | 212 | 186 | 17 | % | |||||||||||||
Global Wealth Management | 31 | 31 | 30 | 32 | 31 | — | ||||||||||||||
Total Mexico | 1,150 | 1,256 | 1,405 | 1,463 | 1,366 | 19 | % | |||||||||||||
Europe, Middle East and Africa (EMEA) | ||||||||||||||||||||
Global Consumer | 1,248 | 1,256 | 1,271 | 1,426 | 1,270 | 2 | % | |||||||||||||
Corporate and Investment Banking | 1,694 | 1,708 | 1,801 | 1,646 | 2,296 | 36 | % | |||||||||||||
Global Wealth Management | 71 | 71 | 79 | 74 | 75 | 6 | % | |||||||||||||
Total EMEA | 3,013 | 3,035 | 3,151 | 3,146 | 3,641 | 21 | % | |||||||||||||
Japan | ||||||||||||||||||||
Global Consumer | 821 | 827 | 803 | 800 | 775 | (6 | %) | |||||||||||||
Corporate and Investment Banking | 180 | 187 | 211 | 646 | 296 | 64 | % | |||||||||||||
Global Wealth Management | 22 | (15 | ) | (13 | ) | — | — | (100 | %) | |||||||||||
Total Japan | 1,023 | 999 | 1,001 | 1,446 | 1,071 | 5 | % | |||||||||||||
Asia (excluding Japan) | ||||||||||||||||||||
Global Consumer | 1,072 | 1,116 | 1,141 | 1,132 | 1,189 | 11 | % | |||||||||||||
Corporate and Investment Banking | 915 | 761 | 1,004 | 1,017 | 1,132 | 24 | % | |||||||||||||
Global Wealth Management | 119 | 111 | 107 | 103 | 180 | 51 | % | |||||||||||||
Total Asia | 2,106 | 1,988 | 2,252 | 2,252 | 2,501 | 19 | % | |||||||||||||
Latin America | ||||||||||||||||||||
Global Consumer | 257 | 281 | 279 | 293 | 326 | 27 | % | |||||||||||||
Corporate and Investment Banking | 310 | 382 | 372 | 351 | 446 | 44 | % | |||||||||||||
Global Wealth Management | 58 | 50 | 48 | 47 | 43 | (26 | %) | |||||||||||||
Total Latin America | 625 | 713 | 699 | 691 | 815 | 30 | % | |||||||||||||
Alternative Investments | 866 | 1,112 | 720 | 732 | 675 | (22 | %) | |||||||||||||
Corporate/Other | 2 | (206 | ) | (151 | ) | (225 | ) | (209 | ) | NM | ||||||||||
Total Net Revenues | $ | 21,196 | $ | 20,169 | $ | 21,498 | $ | 20,779 | $ | 22,183 | 5 | % | ||||||||
Total International | $ | 7,917 | $ | 7,991 | $ | 8,508 | $ | 8,998 | $ | 9,394 | 19 | % | ||||||||
- (1)
- Excludes Alternative Investments and Corporate/Other which are predominantly related to the U.S. The U.S. regional disclosure includes Canada and Puerto Rico. Global Consumer for the U.S includes Other Consumer.
- NM
- Not meaningful
Reclassified to conform to the current period's presentation.
5
CITIGROUP CONSOLIDATED STATEMENT OF INCOME
(In millions of dollars)
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenues | ||||||||||||||||||||
Loan interest, including fees | $ | 11,273 | $ | 11,486 | $ | 12,066 | $ | 12,363 | $ | 12,809 | 14 | % | ||||||||
Other interest and dividends | 6,262 | 6,981 | 7,309 | 8,281 | 9,055 | 45 | % | |||||||||||||
Insurance premiums | 735 | 793 | 743 | 861 | 770 | 5 | % | |||||||||||||
Commissions and fees | 4,209 | 3,978 | 4,825 | 4,131 | 5,188 | 23 | % | |||||||||||||
Principal transactions | 2,215 | 844 | 1,950 | 1,434 | 2,117 | (4 | %) | |||||||||||||
Asset management and administration fees | 1,508 | 1,488 | 1,522 | 1,601 | 1,705 | 13 | % | |||||||||||||
Realized gains (losses) from sales of investments | 243 | 455 | 284 | 980 | 379 | 56 | % | |||||||||||||
Other revenue | 2,175 | 2,812 | 2,448 | 2,063 | 2,267 | 4 | % | |||||||||||||
Total revenues | 28,620 | 28,837 | 31,147 | 31,714 | 34,290 | 20 | % | |||||||||||||
Interest expense | 7,424 | 8,668 | 9,649 | 10,935 | 12,107 | 63 | % | |||||||||||||
Total revenues, net of interest expense | 21,196 | 20,169 | 21,498 | 20,779 | 22,183 | 5 | % | |||||||||||||
Provisions for Credit Losses and for Benefits and Claims | ||||||||||||||||||||
Policyholder benefits and claims | 217 | 212 | 215 | 223 | 227 | 5 | % | |||||||||||||
Provision for loan losses | 1,813 | 1,720 | 2,525 | 1,871 | 1,396 | (23 | %) | |||||||||||||
Provision for unfunded lending commitments | — | 100 | 100 | 50 | 50 | — | ||||||||||||||
Total provisions for credit losses and for benefits and claims | 2,030 | 2,032 | 2,840 | 2,144 | 1,673 | (18 | %) | |||||||||||||
Operating Expenses | ||||||||||||||||||||
Compensation and benefits | 6,486 | 6,033 | 6,792 | 6,461 | 8,263 | 27 | % | |||||||||||||
Net occupancy expense | 1,241 | 1,271 | 1,270 | 1,359 | 1,382 | 11 | % | |||||||||||||
Technology / communication expense | 866 | 884 | 892 | 882 | 886 | 2 | % | |||||||||||||
Advertising and marketing expense | 641 | 620 | 587 | 685 | 603 | (6 | %) | |||||||||||||
Other operating | 2,170 | 2,164 | 1,872 | 1,987 | 2,224 | 2 | % | |||||||||||||
Total operating expenses | 11,404 | 10,972 | 11,413 | 11,374 | 13,358 | 17 | % | |||||||||||||
Income from Continuing Operations before Income Taxes and Minority Interest and Cumulative Effect of Accounting Change | 7,762 | 7,165 | 7,245 | 7,261 | 7,152 | (8 | %) | |||||||||||||
Provision (benefit) for income taxes | 2,484 | 2,179 | 2,164 | 2,251 | 1,537 | (38 | %) | |||||||||||||
Minority interest, net of income taxes | 163 | 255 | 93 | 38 | 60 | (63 | %) | |||||||||||||
Income from Continuing Operations before Cumulative Effect of Accounting Change | 5,115 | 4,731 | 4,988 | 4,972 | 5,555 | 9 | % | |||||||||||||
Discontinued Operations(1)(2) | ||||||||||||||||||||
Income from Discontinued Operations | 483 | 493 | 49 | (117 | ) | 1 | ||||||||||||||
Gain on Sale | — | — | 3,386 | 3,404 | 21 | |||||||||||||||
Provision for income taxes and minority interest, net of taxes | 157 | 151 | 1,280 | 1,278 | (62 | ) | ||||||||||||||
Income from Discontinued Operations, net | 326 | 342 | 2,155 | 2,009 | 84 | |||||||||||||||
Cumulative Effect of Accounting Change(3) | — | — | — | (49 | ) | — | ||||||||||||||
Net Income | $ | 5,441 | $ | 5,073 | $ | 7,143 | $ | 6,932 | $ | 5,639 | 4 | % | ||||||||
- (1)
- Discontinued Operations includes the operations from the Company's January 31, 2005 announced agreement for the sale of Citigroup's Travelers Life & Annuity, and substantially all of Citigroup's international insurance business, to MetLife, Inc. The transaction closed during the 2005 third quarter and resulted in a $3.4 billion ($2.1 billion after-tax) gain.
- (2)
- Discontinued Operations includes the operations from the Company's June 24, 2005 announced agreement for the sale of substantially all of Citigroup's Asset Management business to Legg Mason, Inc. The transaction closed during the 2005 fourth quarter and resulted in a $3.4 billion ($2.1 billion after-tax) gain.
- (3)
- Cumulative Effect of Accounting Change represents the adoption of FIN 47, "Accounting for Conditional Asset Retirement Obligations, an interpretation of SFAS No. 143". This pronouncement is applicable to real estate leasing agreements that required Citigroup to restore the leased space back to its original condition upon termination of the lease.
Reclassified to conform to the current period's presentation.
6
CITIGROUP CONSOLIDATED BALANCE SHEET
(In millions of dollars)
| March 31, 2005 | June 30, 2005 | September 30, 2005 | December 31, 2005 | March 31, 2006 (1) | March 31, 2006 vs. December 31, 2005 Inc (Decr) | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Assets | |||||||||||||||||||
Cash and due from banks (including segregated cash and other deposits) | $ | 25,620 | $ | 28,942 | $ | 28,438 | $ | 28,373 | $ | 26,355 | (7 | %) | |||||||
Deposits at interest with banks | 28,568 | 31,322 | 30,604 | 26,904 | 28,276 | 5 | % | ||||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell | 202,099 | 232,369 | 236,105 | 217,464 | 239,552 | 10 | % | ||||||||||||
Brokerage receivables | 40,747 | 42,977 | 42,006 | 42,823 | 42,569 | (1 | %) | ||||||||||||
Trading account assets | 272,841 | 281,035 | 293,416 | 295,820 | 328,135 | 11 | % | ||||||||||||
Investments | 167,589 | 165,587 | 165,905 | 180,597 | 193,970 | 7 | % | ||||||||||||
Loans, net of unearned income | |||||||||||||||||||
Consumer | 430,008 | 433,057 | 440,145 | 454,620 | 462,068 | 2 | % | ||||||||||||
Corporate | 117,651 | 123,880 | 126,276 | 128,883 | 143,239 | 11 | % | ||||||||||||
Loans, net of unearned income | 547,659 | 556,937 | 566,421 | 583,503 | 605,307 | 4 | % | ||||||||||||
Allowance for credit losses | (10,894 | ) | (10,418 | ) | (10,015 | ) | (9,782 | ) | (9,505 | ) | 3 | % | |||||||
Total loans, net | 536,765 | 546,519 | 556,406 | 573,721 | 595,802 | 4 | % | ||||||||||||
Goodwill | 32,076 | 32,235 | 32,240 | 33,130 | 32,933 | (1 | %) | ||||||||||||
Intangible assets | 15,572 | 13,894 | 14,376 | 14,749 | 15,092 | 2 | % | ||||||||||||
Other assets | 72,936 | 78,485 | 72,117 | 80,456 | 83,517 | 4 | % | ||||||||||||
Assets of discontinued operations held for sale | 95,078 | 94,424 | 1,180 | — | — | — | |||||||||||||
Total assets | $ | 1,489,891 | $ | 1,547,789 | $ | 1,472,793 | $ | 1,494,037 | $ | 1,586,201 | 6 | % | |||||||
Liabilities | |||||||||||||||||||
Non-interest-bearing deposits in U.S. offices | $ | 39,092 | $ | 38,312 | $ | 38,673 | $ | 37,405 | $ | 38,684 | 3 | % | |||||||
Interest-bearing deposits in U.S. offices | 159,889 | 159,825 | 162,310 | 169,277 | 176,032 | 4 | % | ||||||||||||
Non-interest-bearing deposits in offices outside the U.S. | 29,930 | 31,281 | 32,374 | 32,614 | 34,323 | 5 | % | ||||||||||||
Interest-bearing deposits in offices outside the U.S. | 339,963 | 343,156 | 347,756 | 353,299 | 379,118 | 7 | % | ||||||||||||
Total deposits | 568,874 | 572,574 | 581,113 | 592,595 | 628,157 | 6 | % | ||||||||||||
Federal funds purchased and securities loaned or sold under agreements to repurchase | 217,599 | 252,774 | 243,819 | 242,392 | 279,540 | 15 | % | ||||||||||||
Brokerage payables | 52,088 | 53,600 | 57,330 | 70,994 | 70,214 | (1 | %) | ||||||||||||
Trading account liabilities | 120,511 | 133,807 | 140,723 | 121,108 | 144,888 | 20 | % | ||||||||||||
Short-term borrowings | 62,704 | 62,984 | 58,224 | 66,930 | 58,130 | (13 | %) | ||||||||||||
Long-term debt | 207,935 | 211,346 | 213,894 | 217,499 | 227,165 | 4 | % | ||||||||||||
Other liabilities (2) | 63,271 | 63,455 | 65,488 | 69,982 | 63,689 | (9 | %) | ||||||||||||
Liabilities of discontinued operations held for sale | 86,373 | 84,212 | 365 | — | — | — | |||||||||||||
Total liabilities | 1,379,355 | 1,434,752 | 1,360,956 | 1,381,500 | 1,471,783 | 7 | % | ||||||||||||
Stockholders' equity | |||||||||||||||||||
Preferred Stock | 1,125 | 1,125 | 1,125 | 1,125 | 1,000 | (11 | %) | ||||||||||||
Common Stock | 55 | 55 | 55 | 55 | 55 | — | |||||||||||||
Additional paid-in capital | 16,243 | 17,160 | 17,636 | 17,483 | 17,119 | (2 | %) | ||||||||||||
Retained earnings | 105,269 | 108,026 | 112,868 | 117,555 | 120,703 | 3 | % | ||||||||||||
Treasury stock | (10,475 | ) | (12,299 | ) | (17,290 | ) | (21,149 | ) | (21,753 | ) | (3 | %) | |||||||
Accumulated other changes in equity from nonowner sources | (1,681 | ) | (1,030 | ) | (2,557 | ) | (2,532 | ) | (2,706 | ) | (7 | %) | |||||||
Total stockholders' equity | 110,536 | 113,037 | 111,837 | 112,537 | 114,418 | 2 | % | ||||||||||||
Total liabilities and stockholders' equity | $ | 1,489,891 | $ | 1,547,789 | $ | 1,472,793 | $ | 1,494,037 | $ | 1,586,201 | 6 | % | |||||||
- (1)
- Preliminary.
- (2)
- Includes allowance for credit losses for letters of credit and unfunded lending commitments of $600 million, $700 million, $800 million and $850 million for the first, second, third and fourth quarters of 2005, respectively, and $900 million in the first quarter of 2006.
Reclassified to conform to the current period's presentation.
7
GLOBAL CONSUMER
(In millions of dollars)
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Global Consumer: | ||||||||||||||||||
Total Revenues, Net of Interest Expense | $ | 12,118 | $ | 12,007 | $ | 12,321 | $ | 11,799 | $ | 11,955 | (1 | %) | ||||||
Total Operating Expenses | 5,846 | 5,753 | 5,657 | 6,062 | 6,357 | 9 | % | |||||||||||
Provisions for Loan Losses and for Benefits and Claims | 2,102 | 2,047 | 2,770 | 2,144 | 1,668 | (21 | %) | |||||||||||
Income Before Taxes and Minority Interest | 4,170 | 4,207 | 3,894 | 3,593 | 3,930 | (6 | %) | |||||||||||
Income Taxes | 1,314 | 1,295 | 1,153 | 1,142 | 847 | (36 | %) | |||||||||||
Minority Interest, Net of Tax | 13 | 15 | 18 | 17 | 10 | (23 | %) | |||||||||||
Net Income | $ | 2,843 | $ | 2,897 | $ | 2,723 | $ | 2,434 | $ | 3,073 | 8 | % | ||||||
U.S.: | ||||||||||||||||||
Total Revenues, Net of Interest Expense | $ | 7,963 | $ | 7,490 | $ | 7,701 | $ | 6,953 | $ | 7,260 | (9 | %) | ||||||
Total Operating Expenses | 3,337 | 3,358 | 3,290 | 3,464 | 3,569 | 7 | % | |||||||||||
Provisions for Loan Losses and for Benefits and Claims | 1,429 | 1,317 | 1,573 | 1,281 | 901 | (37 | %) | |||||||||||
Income Before Taxes and Minority Interest | 3,197 | 2,815 | 2,838 | 2,208 | 2,790 | (13 | %) | |||||||||||
Income Taxes | 1,104 | 945 | 996 | 778 | 777 | (30 | %) | |||||||||||
Minority Interest, Net of Tax | 13 | 16 | 17 | 16 | 9 | (31 | %) | |||||||||||
Net Income | $ | 2,080 | $ | 1,854 | $ | 1,825 | $ | 1,414 | $ | 2,004 | (4 | %) | ||||||
International: | ||||||||||||||||||
Total Revenues, Net of Interest Expense | $ | 4,358 | $ | 4,535 | $ | 4,633 | $ | 4,870 | $ | 4,709 | 8 | % | ||||||
Total Operating Expenses | 2,422 | 2,320 | 2,280 | 2,498 | 2,621 | 8 | % | |||||||||||
Provisions for Loan Losses and for Benefits and Claims | 673 | 730 | 1,197 | 863 | 767 | 14 | % | |||||||||||
Income Before Taxes and Minority Interest | 1,263 | 1,485 | 1,156 | 1,509 | 1,321 | 5 | % | |||||||||||
Income Taxes | 324 | 385 | 193 | 412 | 184 | (43 | %) | |||||||||||
Minority Interest, Net of Tax | — | (1 | ) | 1 | 1 | 1 | — | |||||||||||
Net Income | $ | 939 | $ | 1,101 | $ | 962 | $ | 1,096 | $ | 1,136 | 21 | % | ||||||
Other Consumer: | ||||||||||||||||||
Total Revenues, Net of Interest Expense | $ | (203 | ) | $ | (18 | ) | $ | (13 | ) | $ | (24 | ) | $ | (14 | ) | 93 | % | |
Total Operating Expenses | 87 | 75 | 87 | 100 | 167 | 92 | % | |||||||||||
Income Before Taxes | (290 | ) | (93 | ) | (100 | ) | (124 | ) | (181 | ) | 38 | % | ||||||
Income Taxes | (114 | ) | (35 | ) | (36 | ) | (48 | ) | (114 | ) | — | |||||||
Net Income | $ | (176 | ) | $ | (58 | ) | $ | (64 | ) | $ | (76 | ) | $ | (67 | ) | 62 | % | |
Reclassified to conform to the current period's presentation.
8
GLOBAL CONSUMER
U.S.
CARDS—Page 1
(In millions of dollars)
For your convenience, an excerpt from our 2006 first quarter earnings press release is set out below. The full text of the press release, and those from prior periods, are available on Citigroup's website at www.citigroup.com.
- —
- Net income increased 19%, partially reflecting sharply lower credit costs. Credit costs declined, as lower bankruptcy filings and a continued favorable credit environment combined to drive the managed net credit loss ratio down by 168 bps to 3.90%.
- —
- Revenues declined, reflecting lower average managed receivables and continued net interest margin compression. Receivables growth in reward and private label cards was more than offset by declines in traditional card products. The benefit of 11% growth in purchase sales was offset by increased payment rates.
- —
- 2006 first quarter results include the impact from SFAS 123(R) charges and tax benefits from the resolution of a federal tax audit. See Schedule A on page 8 of the 1Q06 earnings press release.
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total Revenues, Net of Interest Expense (1) | $ | 3,455 | $ | 3,263 | $ | 3,381 | $ | 2,725 | $ | 3,234 | (6 | %) | |||||||
Total Operating Expenses | 1,500 | 1,503 | 1,458 | 1,541 | 1,532 | 2 | % | ||||||||||||
Net Credit Losses | 756 | 640 | 649 | 692 | 446 | (41 | %) | ||||||||||||
Credit Reserve Build / (Release) | — | — | 30 | (200 | ) | (72 | ) | — | |||||||||||
Provision for Benefits & Claims | — | — | — | — | 21 | — | |||||||||||||
Provision for Loan Losses and for Benefits and Claims | 756 | 640 | 679 | 492 | 395 | (48 | %) | ||||||||||||
Income Before Taxes and Minority Interest | 1,199 | 1,120 | 1,244 | 692 | 1,307 | 9 | % | ||||||||||||
Income Taxes and Minority Interest | 421 | 385 | 447 | 248 | 381 | (10 | %) | ||||||||||||
Net Income | $ | 778 | $ | 735 | $ | 797 | $ | 444 | $ | 926 | 19 | % | |||||||
Average Assets (in billions of dollars) | $ | 71 | $ | 65 | $ | 63 | $ | 63 | $ | 63 | (11 | %) | |||||||
Return on Assets | 4.44% | 4.54% | 5.02% | 2.80% | 5.96% | ||||||||||||||
Net Credit Loss Ratio | 5.77% | 5.47% | 5.76% | 6.38% | 4.27% | ||||||||||||||
Average Risk Capital | $ | 5,638 | $ | 5,855 | $ | 5,848 | $ | 5,756 | $ | 5,563 | (1 | %) | |||||||
Return on Risk Capital | 56% | 50% | 54% | 31% | 68% | ||||||||||||||
Return on Invested Capital | 23% | 21% | 22% | 13% | 28% | ||||||||||||||
KEY INDICATORS—Managed Basis (2)(in billions of dollars) | |||||||||||||||||||
Return on Managed Assets | 2.12% | 2.04% | 2.20% | 1.22% | 2.59% | ||||||||||||||
Average Managed Loans: | |||||||||||||||||||
Securitized | $ | 86.4 | $ | 87.7 | $ | 89.8 | $ | 92.8 | $ | 94.7 | 10 | % | |||||||
Held for Sale | 0.2 | 0.6 | — | 0.7 | 0.3 | 50 | % | ||||||||||||
On Balance Sheet | 53.1 | 47.0 | 44.7 | 43.0 | 42.3 | (20 | %) | ||||||||||||
Total Managed | $ | 139.7 | $ | 135.3 | $ | 134.5 | $ | 136.5 | $ | 137.3 | (2 | %) | |||||||
Bankcards | $ | 114.4 | $ | 110.4 | $ | 109.2 | $ | 109.6 | $ | 110.4 | (3 | %) | |||||||
Private Label | 25.3 | 24.9 | 25.3 | 26.9 | 26.9 | 6 | % | ||||||||||||
Total Managed | $ | 139.7 | $ | 135.3 | $ | 134.5 | $ | 136.5 | $ | 137.3 | (2 | %) | |||||||
End of Period Managed Loans: | |||||||||||||||||||
Bankcards | $ | 111.9 | $ | 110.2 | $ | 109.1 | $ | 113.7 | $ | 109.7 | (2 | %) | |||||||
Private Label | 24.7 | 25.2 | 25.6 | 27.9 | 26.2 | 6 | % | ||||||||||||
Total | $ | 136.6 | $ | 135.4 | $ | 134.7 | $ | 141.6 | $ | 135.9 | (1 | %) | |||||||
- (1)
- The 2005 first quarter, 2005 second quarter, 2005 third quarter, 2005 fourth quarter and 2006 first quarter include releases of $129 million, $102 million, $137 million, $186 million and $90 million, respectively, from the allowance for credit losses related to loan receivables that were securitized during the quarter.
- (2)
- Managed basis presentation includes results from both the on-balance sheet loans and off- balance sheet loans, and excludes the impact of card securitization activity. Managed disclosures assume that securitized loans have not been sold and present the results of the securitized loans in the same manner as the Company's owned loans.
Reclassified to conform to the current period's presentation.
9
GLOBAL CONSUMER
U.S.
CARDS—Page 2
(In millions of dollars)
| | 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
SUPPLEMENTAL DISCLOSURE—Managed Basis(1): | |||||||||||||||||||||
EOP Open Accounts (in millions) | 124.5 | 122.7 | 119.4 | 131.2 | 131.1 | 5 | % | ||||||||||||||
Purchase Sales (in billions of dollars)(2) | $ | 61.7 | $ | 69.8 | $ | 70.9 | $ | 75.8 | $ | 68.4 | 11 | % | |||||||||
Managed Average Yield(3) | Bankcards | 12.17 | % | 12.42 | % | 12.76 | % | 12.43 | % | 12.85 | % | ||||||||||
Private Label | 19.99 | % | 19.43 | % | 19.24 | % | 18.91 | % | 19.55 | % | |||||||||||
Total | 13.58 | % | 13.71 | % | 13.98 | % | 13.71 | % | 14.16 | % | |||||||||||
Managed Net Interest Revenue (in millions of dollars)(4) | Bankcards | $ | 2,690 | $ | 2,572 | $ | 2,650 | $ | 2,524 | $ | 2,471 | (8 | %) | ||||||||
Private Label | 1,111 | 1,048 | 1,088 | 1,124 | 1,076 | (3 | %) | ||||||||||||||
Total | $ | 3,801 | $ | 3,620 | $ | 3,738 | $ | 3,648 | $ | 3,547 | (7 | %) | |||||||||
Managed Net Interest Revenue as a % of Average Managed Loans | Bankcards | 9.54 | % | 9.35 | % | 9.64 | % | 9.14 | % | 9.09 | % | ||||||||||
Private Label | 17.81 | % | 16.88 | % | 17.06 | % | 16.58 | % | 16.22 | % | |||||||||||
Total | 11.03 | % | 10.74 | % | 11.03 | % | 10.60 | % | 10.48 | % | |||||||||||
Managed Net Credit Margin (in millions of dollars)(5) | Bankcards | $ | 1,888 | $ | 1,798 | $ | 1,881 | $ | 823 | $ | 2,146 | 14 | % | ||||||||
Private Label | 642 | 635 | 672 | 652 | 617 | (4 | %) | ||||||||||||||
Total | $ | 2,530 | $ | 2,433 | $ | 2,553 | $ | 1,475 | $ | 2,763 | 9 | % | |||||||||
Managed Net Credit Margin as a % of Average Managed Loans | Bankcards | 6.69 | % | 6.54 | % | 6.84 | % | 2.98 | % | 7.88 | % | ||||||||||
Private Label | 10.29 | % | 10.23 | % | 10.54 | % | 9.62 | % | 9.30 | % | |||||||||||
Total | 7.34 | % | 7.22 | % | 7.54 | % | 4.29 | % | 8.16 | % | |||||||||||
Managed Net Credit Losses (in millions of dollars) | Bankcards | $ | 1,490 | $ | 1,564 | $ | 1,531 | $ | 1,828 | $ | 948 | (36 | %) | ||||||||
Private Label | 431 | 392 | 385 | 470 | 373 | (13 | %) | ||||||||||||||
Total | $ | 1,921 | $ | 1,956 | $ | 1,916 | $ | 2,298 | $ | 1,321 | (31 | %) | |||||||||
Coincident Managed Net | Bankcards | 5.28 | % | 5.69 | % | 5.57 | % | 6.61 | % | 3.49 | % | ||||||||||
Private Label | 6.91 | % | 6.31 | % | 6.04 | % | 6.93 | % | 5.62 | % | |||||||||||
Total | 5.58 | % | 5.80 | % | 5.66 | % | 6.68 | % | 3.90 | % | |||||||||||
12 Month Lagged Managed Net Credit Loss Ratio | |||||||||||||||||||||
5.70 | % | 5.84 | % | 5.58 | % | 6.50 | % | 3.83 | % | ||||||||||||
Managed Loans 90+Days Past Due | Bankcards | $ | 1,716 | $ | 1,580 | $ | 1,579 | $ | 1,553 | $ | 1,536 | (10 | %) | ||||||||
Private Label | 684 | 672 | 701 | 922 | 825 | 21 | % | ||||||||||||||
Total | $ | 2,400 | $ | 2,252 | $ | 2,280 | $ | 2,475 | $ | 2,361 | (2 | %) | |||||||||
% of EOP Managed Loans | Bankcards | 1.53 | % | 1.43 | % | 1.45 | % | 1.37 | % | 1.40 | % | ||||||||||
Private Label | 2.78 | % | 2.67 | % | 2.74 | % | 3.30 | % | 3.15 | % | |||||||||||
Total | 1.76 | % | 1.66 | % | 1.69 | % | 1.75 | % | 1.74 | % |
- (1)
- Managed basis presentation includes results from both the on-balance sheet loans and off- balance sheet loans, and excludes the impact of card securitization activity. Managed disclosures assume that securitized loans have not been sold and present the results of the securitized loans in the same manner as the Company's owned loans.
- (2)
- Purchase Sales represents customers' purchased sales plus cash advances.
- (3)
- Gross interest revenue earned divided by average managed loans.
- (4)
- Includes certain fees that are recorded as interest revenue.
- (5)
- Total Revenues, net of Interest Expense, less Net Credit Losses.
Reclassified to conform to the current period's presentation.
10
GLOBAL CONSUMER
U.S.
RETAIL DISTRIBUTION—Page 1
(In millions of dollars)
For your convenience, an excerpt from our 2006 first quarter earnings press release is set out below. The full text of the press release, and those from prior periods, are available on Citigroup's website at www.citigroup.com.
- —
- Revenues and net income declined primarily due to the absence of a $110 million pre-tax gain in prior year quarter relating to the resolution of litigation. Growth in deposits and loans, up 6% and 8%, respectively, and a 26% increase in investment product sales, were more than offset by lower net interest margin. Lower net interest margin was driven in part by a shift in customer liabilities from demand deposits to certificates of deposit.
- —
- Expenses increased 13%, reflecting higher business volumes and investment in new branches, new product development and technology. During the quarter, 36 new branches were opened.
- —
- Credit costs declined 70 basis points to an NCL rate of 2.66%, reflecting lower bankruptcy filings.
- —
- 2006 first quarter results include the impact from SFAS 123(R) charges and tax benefits from the resolution of a federal tax audit. See Schedule A on page 8 of the 1Q06 earnings press release.
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total Revenues, Net of Interest Expense: | ||||||||||||||||||||
Citibank Branches | $ | 853 | $ | 766 | $ | 754 | $ | 730 | $ | 737 | (14 | %) | ||||||||
Citifinancial Branches | 1,053 | 1,054 | 1,035 | 1,048 | 1,008 | (4 | %) | |||||||||||||
Primerica Financial Services | 551 | 540 | 550 | 581 | 551 | — | ||||||||||||||
Total Revenues, Net of Interest Expense | 2,457 | 2,360 | 2,339 | 2,359 | 2,296 | (7 | %) | |||||||||||||
Total Operating Expenses | 1,085 | 1,107 | 1,099 | 1,116 | 1,221 | 13 | % | |||||||||||||
Net Credit Losses | 326 | 346 | 314 | 418 | 279 | (14 | %) | |||||||||||||
Credit Reserve Build/(Release) | (17 | ) | — | 275 | 44 | (55 | ) | NM | ||||||||||||
Provision for Benefits & Claims | 182 | 177 | 170 | 175 | 163 | (10 | %) | |||||||||||||
Provision for Loan Losses and for Benefits and Claims | 491 | 523 | 759 | 637 | 387 | (21 | %) | |||||||||||||
Income Before Taxes | 881 | 730 | 481 | 606 | 688 | (22 | %) | |||||||||||||
Income Taxes | 317 | 252 | 162 | 215 | 173 | (45 | %) | |||||||||||||
Net Income | $ | 564 | $ | 478 | $ | 319 | $ | 391 | $ | 515 | (9 | %) | ||||||||
Average Assets (in billions of dollars) | $ | 63 | $ | 64 | $ | 65 | $ | 65 | $ | 66 | 5 | % | ||||||||
Return on Assets | 3.63 | % | 3.00 | % | 1.95 | % | 2.39 | % | 3.16 | % | ||||||||||
Average Risk Capital | $ | 2,940 | $ | 2,983 | $ | 3,003 | $ | 2,982 | $ | 3,459 | 18 | % | ||||||||
Return on Risk Capital | 78 | % | 64 | % | 42 | % | 52 | % | 60 | % | ||||||||||
Return on Invested Capital | 20 | % | 18 | % | 13 | % | 15 | % | 23 | % | ||||||||||
Net Income by Business: | ||||||||||||||||||||
Citibank Branches | $ | 185 | $ | 114 | $ | 111 | $ | 96 | $ | 100 | (46 | %) | ||||||||
Citifinancial Branches | 245 | 228 | 72 | 151 | 265 | 8 | % | |||||||||||||
Primerica Financial Services | 134 | 136 | 136 | 144 | 150 | 12 | % | |||||||||||||
Total Net Income | $ | 564 | $ | 478 | $ | 319 | $ | 391 | $ | 515 | (9 | %) | ||||||||
- NM
- Not meaningful
Reclassified to conform to the current period's presentation.
11
GLOBAL CONSUMER
U.S.
RETAIL DISTRIBUTION—Page 2
(In millions of dollars)
| | 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
KEY INDICATORS: | ||||||||||||||||||||||
Average Loans | Citibank Branches | $ | 8.2 | $ | 8.5 | $ | 8.8 | $ | 9.1 | $ | 9.4 | 15 | % | |||||||||
(in billions of dollars) | CitiFinancial Branches | 31.2 | 31.2 | 31.9 | 32.6 | 33.1 | 6 | % | ||||||||||||||
Total | $ | 39.4 | $ | 39.7 | $ | 40.7 | $ | 41.7 | $ | 42.5 | 8 | % | ||||||||||
Average Loans by Product | Real estate secured loans | $ | 20.4 | $ | 20.8 | $ | 21.2 | $ | 21.8 | $ | 22.3 | 9 | % | |||||||||
(in billions of dollars) | Personal loans | 14.4 | 14.4 | 14.8 | 15.0 | 15.2 | 6 | % | ||||||||||||||
Sales finance and other | 4.6 | 4.5 | 4.7 | 4.9 | 5.0 | 9 | % | |||||||||||||||
Total | $ | 39.4 | $ | 39.7 | $ | 40.7 | $ | 41.7 | $ | 42.5 | 8 | % | ||||||||||
Net Interest Revenue | Citibank Branches | $ | 513 | $ | 523 | $ | 509 | $ | 512 | $ | 501 | (2 | %) | |||||||||
(in millions of dollars) | CitiFinancial Branches | 918 | 918 | 919 | 903 | 891 | (3 | %) | ||||||||||||||
Primerica Financial Services | 58 | 55 | 60 | 69 | 59 | 2 | % | |||||||||||||||
Total | $ | 1,489 | $ | 1,496 | $ | 1,488 | $ | 1,484 | $ | 1,451 | (3 | %) | ||||||||||
Net Credit Loss Ratio | 3.36 | % | 3.50 | % | 3.06 | % | 3.98 | % | 2.66 | % | ||||||||||||
Loans 90+ Days Past Due (in millions of dollars) | $ | 782 | $ | 723 | $ | 787 | $ | 818 | $ | 740 | (5 | %) | ||||||||||
% of EOP Loans | 1.98 | % | 1.79 | % | 1.91 | % | 1.94 | % | 1.73 | % | ||||||||||||
Number of Branches: | Citibank | 883 | 885 | 884 | 896 | 906 | 3 | % | ||||||||||||||
CitiFinancial | 2,273 | 2,273 | 2,274 | 2,277 | 2,299 | 1 | % | |||||||||||||||
Total | 3,156 | 3,158 | 3,158 | 3,173 | 3,205 | 2 | % | |||||||||||||||
Total EOP Accounts (in millions) | Citibank Branches | 10.3 | 10.4 | 10.5 | 10.5 | 10.7 | 4 | % | ||||||||||||||
CitiFinancial Branches | 5.3 | 5.3 | 5.4 | 5.5 | 5.3 | — | ||||||||||||||||
Primerica Financial Services | 4.8 | 4.8 | 4.9 | 4.8 | 4.9 | 2 | % | |||||||||||||||
Total | 20.4 | 20.5 | 20.8 | 20.8 | 20.9 | 2 | % | |||||||||||||||
Citibank Branches—Average Balances (in billions of dollars) | ||||||||||||||||||||||
Checking, Savings & Money Market Deposits | $ | 65.6 | $ | 66.4 | $ | 65.1 | $ | 63.6 | $ | 64.1 | (2 | %) | ||||||||||
Time Deposits, CDs and Other | 10.9 | 12.6 | 13.2 | 14.5 | 16.2 | 49 | % | |||||||||||||||
Total Branch Deposits | 76.5 | 79.0 | 78.3 | 78.1 | 80.3 | 5 | % | |||||||||||||||
Smith Barney Bank Deposit Program | 42.3 | 41.4 | 41.3 | 42.2 | 45.3 | 7 | % | |||||||||||||||
Total Deposits | $ | 118.8 | $ | 120.4 | $ | 119.6 | $ | 120.3 | $ | 125.6 | 6 | % | ||||||||||
Checking Accounts (in millions) | 3.5 | 3.5 | 3.5 | 3.5 | 3.6 | 3 | % | |||||||||||||||
EOP Investment AUMs (in billions of dollars) | $ | 39.8 | $ | 40.7 | $ | 41.6 | $ | 42.5 | $ | 43.8 | 10 | % | ||||||||||
Total Investment Product Sales (in billions of dollars) | $ | 3.1 | $ | 3.0 | $ | 3.2 | $ | 3.0 | $ | 3.9 | 26 | % | ||||||||||
Primerica Financial Services: | ||||||||||||||||||||||
Life Insurance in Force (in billions of dollars) | $ | 553.1 | $ | 562.7 | $ | 572.4 | $ | 581.3 | $ | 583.9 | 6 | % | ||||||||||
Loan Volumes (in millions of dollars) | $ | 972.8 | $ | 963.6 | $ | 1,099.9 | $ | 1,381.4 | $ | 1,087.0 | 12 | % | ||||||||||
Mutual Fund Sales at NAV (in millions of dollars) | $ | 903 | $ | 865 | $ | 798 | $ | 791 | $ | 971 | 8 | % | ||||||||||
Variable Annuity Net Written Premiums & Deposits (in millions of dollars) | $ | 328 | $ | 271 | $ | 283 | $ | 302 | $ | 388 | 18 | % | ||||||||||
Investment AUMs (EOP) (in billions of dollars) | $ | 27.5 | $ | 28.0 | $ | 29.3 | $ | 30.1 | $ | 31.2 | 13 | % |
Reclassified to conform to the current period's presentation.
12
GLOBAL CONSUMER
U.S.
CONSUMER LENDING—Page 1
(In millions of dollars)
For your convenience, an excerpt from our 2006 first quarter earnings press release is set out below. The full text of the press release, and those from prior periods, are available on Citigroup's website at www.citigroup.com.
- —
- Revenues declined as 18% growth in average loans was offset by net interest margin compression across all loan portfolios. The revenue decrease also reflected lower net mortgage servicing revenues and lower gains on the sale of real estate loans.
- —
- Expenses increased 10% due to increased business volumes. Credit conditions remained favorable, leading to a decline in net credit loss ratios.
- —
- 2006 first quarter results include the impact from SFAS 123(R) charges and tax benefits from the resolution of a federal tax audit. See Schedule A on page 8 of the 1Q06 earnings press release.
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total Revenues, Net of Interest Expense: | |||||||||||||||||||||
Real Estate Lending | $ | 924 | $ | 888 | $ | 836 | $ | 910 | $ | 843 | (9 | %) | |||||||||
Student Loans | 132 | 176 | 173 | 171 | 117 | (11 | %) | ||||||||||||||
Auto | 317 | 312 | 323 | 307 | 300 | (5 | %) | ||||||||||||||
Total Revenues, Net of Interest Expense | 1,373 | 1,376 | 1,332 | 1,388 | 1,260 | (8 | %) | ||||||||||||||
Total Operating Expenses | 411 | 413 | 425 | 451 | 453 | 10 | % | ||||||||||||||
Net Credit Losses | 181 | 146 | 168 | 178 | 176 | (3 | %) | ||||||||||||||
Credit Reserve Build / (Release) | (1 | ) | 1 | (56 | ) | (8 | ) | (31 | ) | NM | |||||||||||
Provision for Benefits & Claims | 2 | 1 | 2 | — | (2 | ) | NM | ||||||||||||||
Provision for Loan Losses and for Benefits and Claims | 182 | 148 | 114 | 170 | 143 | (21 | %) | ||||||||||||||
Income Before Taxes and Minority Interest | 780 | 815 | 793 | 767 | 664 | (15 | %) | ||||||||||||||
Income Taxes | 281 | 292 | 289 | 293 | 218 | (22 | %) | ||||||||||||||
Minority Interest, Net of Tax | 13 | 16 | 17 | 16 | 9 | (31 | %) | ||||||||||||||
Net Income | $ | 486 | $ | 507 | $ | 487 | $ | 458 | $ | 437 | (10 | )% | |||||||||
Average Assets (in billions of dollars) | $ | 178 | $ | 186 | $ | 192 | $ | 201 | $ | 209 | 17 | % | |||||||||
Return on Assets | 1.11 | % | 1.09 | % | 1.01 | % | 0.90 | % | 0.85 | % | |||||||||||
Average Risk Capital | $ | 3,291 | $ | 3,341 | $ | 3,218 | $ | 3,270 | $ | 3,732 | 13 | % | |||||||||
Return on Risk Capital | 60 | % | 61 | % | 60 | % | 56 | % | 47 | % | |||||||||||
Return on Invested Capital | 38 | % | 32 | % | 31 | % | 29 | % | 27 | % | |||||||||||
Net Income by Business: | |||||||||||||||||||||
Real Estate Lending | $ | 363 | $ | 356 | $ | 318 | $ | 341 | $ | 328 | (10 | %) | |||||||||
Student Loans | 52 | 62 | 62 | 58 | 38 | (27 | %) | ||||||||||||||
Auto | 71 | 89 | 107 | 59 | 71 | — | |||||||||||||||
Total Net Income | $ | 486 | $ | 507 | $ | 487 | $ | 458 | $ | 437 | (10 | %) | |||||||||
- NM
- Not meaningful
Reclassified to conform to the current period's presentation.
13
GLOBAL CONSUMER
U.S.
CONSUMER LENDING—Page 2
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
KEY INDICATORS: | ||||||||||||||||||||
Real Estate Lending—Balances (in billions of dollars): | ||||||||||||||||||||
Average Loans | $ | 122.2 | $ | 126.5 | $ | 132.2 | $ | 141.5 | $ | 149.6 | 22 | % | ||||||||
Originations | $ | 25.9 | $ | 33.3 | $ | 37.0 | $ | 35.7 | $ | 32.4 | 25 | % | ||||||||
Third Party Mortgage Servicing Portfolio (EOP) | $ | 288.8 | $ | 287.2 | $ | 293.5 | $ | 293.8 | $ | 307.4 | 6 | % | ||||||||
Net Servicing & Gain/(Loss) on Sale—(in millions of dollars) | $ | 82.3 | $ | 82.3 | $ | 51.9 | $ | 77.1 | $ | 10.5 | (87 | %) | ||||||||
Net Interest Revenue—(in millions of dollars) | $ | 831 | $ | 793 | $ | 774 | $ | 815 | $ | 812 | (2 | %) | ||||||||
NIR as a % of Average Loans | 2.76 | % | 2.51 | % | 2.32 | % | 2.29 | % | 2.20 | % | ||||||||||
Net Credit Loss Ratio | 0.23 | % | 0.19 | % | 0.17 | % | 0.16 | % | 0.19 | % | ||||||||||
Loans 90+Days Past Due—(in millions of dollars) | $ | 1,911 | $ | 1,672 | $ | 1,697 | $ | 1,766 | $ | 1,605 | (16 | %) | ||||||||
% of EOP Loans | 1.54 | % | 1.31 | % | 1.24 | % | 1.22 | % | 1.03 | % | ||||||||||
Student Loans—Balances (in billions of dollars): | ||||||||||||||||||||
Average Loans | $ | 24.9 | $ | 25.7 | $ | 25.3 | $ | 24.9 | $ | 24.7 | (1 | %) | ||||||||
Originations | $ | 2.6 | $ | 1.6 | $ | 3.8 | $ | 2.8 | $ | 2.9 | 12 | % | ||||||||
Net Interest Revenue—(in millions of dollars) | $ | 134 | $ | 129 | $ | 121 | $ | 109 | $ | 104 | (22 | %) | ||||||||
NIR as a % of Average Loans | 2.18 | % | 2.01 | % | 1.90 | % | 1.74 | % | 1.71 | % | ||||||||||
Net Credit Loss Ratio | 0.02 | % | 0.07 | % | 0.04 | % | 0.08 | % | 0.03 | % | ||||||||||
Loans 90+Days Past Due—(in millions of dollars) | $ | 773 | $ | 792 | $ | 814 | $ | 743 | $ | 729 | (6 | %) | ||||||||
% of EOP Loans | 3.06 | % | 3.25 | % | 3.25 | % | 3.11 | % | 2.95 | % | ||||||||||
Auto—(in billions of dollars): | ||||||||||||||||||||
Average Loans | $ | 11.0 | $ | 11.4 | $ | 11.9 | $ | 12.3 | $ | 12.8 | 16 | % | ||||||||
Originations | $ | 1.4 | $ | 1.6 | $ | 1.9 | $ | 1.5 | $ | 2.0 | 43 | % | ||||||||
Net Interest Revenue—(in millions of dollars) | $ | 308 | $ | 305 | $ | 314 | $ | 298 | $ | 291 | (6 | %) | ||||||||
NIR as a % of Average Loans | 11.36 | % | 10.73 | % | 10.47 | % | 9.61 | % | 9.22 | % | ||||||||||
Net Credit Margin (NCM)—(in millions of dollars) | $ | 204 | $ | 231 | $ | 213 | $ | 191 | $ | 196 | (4 | %) | ||||||||
NCM as a % of Average Loans | 7.52 | % | 8.13 | % | 7.10 | % | 6.16 | % | 6.21 | % | ||||||||||
Net Credit Loss Ratio | 4.17 | % | 2.81 | % | 3.70 | % | 3.74 | % | 3.29 | % | ||||||||||
Loans 90+Days Past Due—(in millions of dollars) | $ | 74 | $ | 75 | $ | 97 | $ | 115 | $ | 77 | 4 | % | ||||||||
% of EOP Loans | 0.66 | % | 0.65 | % | 0.80 | % | 0.93 | % | 0.58 | % |
Reclassified to conform to the current period's presentation.
14
GLOBAL CONSUMER
U.S.
COMMERCIAL BUSINESS
(In millions of dollars)
For your convenience, an excerpt from our 2006 first quarter earnings press release is set out below. The full text of the press release, and those from prior periods, are available on Citigroup's website at www.citigroup.com.
- —
- Revenues and net income declined primarily due to the absence of a $161 million pre-tax gain on portfolio divestitures in the prior-year quarter. Results also reflect growth in core loan and deposit balances, up 23% and 25% respectively, which was more than offset by net interest margin compression.
- —
- Credit costs declined, reflecting the continued favorable credit environment.
- —
- 2006 first quarter results include the impact from SFAS 123(R) charges and tax benefits from the resolution of a federal tax audit. See Schedule A on page 8 of the 1Q06 earnings press release.
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total Revenues, Net of Interest Expense | $ | 678 | $ | 491 | $ | 649 | $ | 481 | $ | 470 | (31 | %) | |||||||
Total Operating Expenses | 341 | 335 | 308 | 356 | 363 | 6 | % | ||||||||||||
Net Credit Losses | 12 | 12 | 8 | 16 | 14 | 17 | % | ||||||||||||
Credit Reserve Build/(Release) | (12 | ) | (6 | ) | 13 | (34 | ) | (38 | ) | NM | |||||||||
Total Provision for Loan Losses | — | 6 | 21 | (18 | ) | (24 | ) | — | |||||||||||
Income Before Taxes | 337 | 150 | 320 | 143 | 131 | (61 | %) | ||||||||||||
Income Taxes | 85 | 16 | 98 | 22 | 5 | (94 | %) | ||||||||||||
Net Income | $ | 252 | $ | 134 | $ | 222 | $ | 121 | $ | 126 | (50 | %) | |||||||
Average Assets (in billions of dollars) | $ | 36 | $ | 38 | $ | 39 | $ | 40 | $ | 41 | 14 | % | |||||||
Return on Assets | 2.84 | % | 1.41 | % | 2.26 | % | 1.20 | % | 1.25 | % | |||||||||
Average Risk Capital | $ | 1,969 | $ | 1,825 | $ | 1,698 | $ | 1,758 | $ | 2,315 | 18 | % | |||||||
Return on Risk Capital | 52 | % | 29 | % | 52 | % | 27 | % | 22 | % | |||||||||
Return on Invested Capital | 37 | % | 19 | % | 31 | % | 17 | % | 11 | % | |||||||||
KEY INDICATORS (in billions of dollars): | |||||||||||||||||||
Total Deposits | $ | 15.1 | $ | 16.9 | $ | 18.6 | $ | 19.0 | $ | 18.8 | 25 | % | |||||||
Commercial Real Estate | $ | 12.4 | $ | 14.2 | $ | 14.5 | $ | 15.2 | $ | 16.1 | 30 | % | |||||||
Equipment Leasing | 12.7 | 13.1 | 13.1 | 13.7 | 14.1 | 11 | % | ||||||||||||
Other | 2.2 | 3.2 | 3.3 | 3.3 | 3.3 | 50 | % | ||||||||||||
Average Loans | $ | 27.3 | $ | 30.5 | $ | 30.9 | $ | 32.2 | $ | 33.5 | 23 | % | |||||||
Average Loans—Liquidating | 2.4 | 0.8 | 0.6 | 0.5 | 0.4 | (83 | %) | ||||||||||||
Average Loans—Total | $ | 29.7 | $ | 31.3 | $ | 31.5 | $ | 32.7 | $ | 33.9 | 14 | % | |||||||
Operating Leases | 1.8 | 1.6 | 1.6 | 1.9 | 1.8 | — | |||||||||||||
Total Average Earning Assets | $ | 31.5 | $ | 32.9 | $ | 33.1 | $ | 34.6 | $ | 35.7 | 13 | % | |||||||
Net Interest Revenue — (in millions of dollars) | $ | 329 | $ | 322 | $ | 372 | $ | 295 | $ | 287 | (13 | %) | |||||||
Net Credit Loss Ratio | 0.17 | % | 0.15 | % | 0.10 | % | 0.19 | % | 0.17 | % | |||||||||
Loans 90+Days Past Due—(in millions of dollars) | $ | 185 | $ | 148 | $ | 175 | $ | 170 | $ | 151 | (18 | %) | |||||||
% of EOP Loans | 0.60 | % | 0.47 | % | 0.54 | % | 0.51 | % | 0.44 | % |
- NM
- Not meaningful
Reclassified to conform to the current period's presentation.
15
GLOBAL CONSUMER
INTERNATIONAL
CARDS—Page 1
(In millions of dollars)
For your convenience, an excerpt from our 2006 first quarter earnings press release is set out below. The full text of the press release, and those from prior periods, are available on Citigroup's website at www.citigroup.com.
- —
- Revenue growth was driven by higher average loans, up 14%, and higher net interest margins. Loan growth was led by Mexico, Asia and Latin America.
- —
- Expense growth reflected continued investment in organic growth and costs associated with a labor settlement in Korea.
- —
- Net income declined as higher credit costs were driven by a charge to increase loan loss reserves related to industry-wide credit deterioration in the Taiwan cards market, portfolio growth and target market expansion.
- —
- 2006 first quarter results include the impact from SFAS 123(R) charges and tax benefits from the resolution of a federal tax audit. See Schedule A on page 8 of the 1Q06 earnings press release.
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total Revenues, Net of Interest Expense | |||||||||||||||||||
Mexico | $ | 269 | $ | 307 | $ | 353 | $ | 382 | $ | 405 | 51 | % | |||||||
EMEA | 294 | 285 | 302 | 396 | 294 | — | |||||||||||||
Japan | 73 | 76 | 76 | 77 | 70 | (4 | %) | ||||||||||||
Asia (excluding Japan) | 401 | 423 | 414 | 425 | 415 | 3 | % | ||||||||||||
Latin America | 68 | 85 | 64 | 80 | 96 | 41 | % | ||||||||||||
Total Revenues, Net of Interest Expense | 1,105 | 1,176 | 1,209 | 1,360 | 1,280 | 16 | % | ||||||||||||
Total Operating Expenses | 568 | 577 | 561 | 665 | 617 | 9 | % | ||||||||||||
Net Credit Losses | 160 | 157 | 168 | 182 | 218 | 36 | % | ||||||||||||
Specific and Unallocated Credit Reserve Build/(Release) | (5 | ) | 18 | 24 | 35 | 94 | NM | ||||||||||||
Total Provision for Loan Losses | 155 | 175 | 192 | 217 | 312 | NM | |||||||||||||
Income Before Taxes and Minority Interest | 382 | 424 | 456 | 478 | 351 | (8 | %) | ||||||||||||
Income Taxes and Minority Interest | 80 | 93 | 73 | 121 | 60 | (25 | %) | ||||||||||||
Net Income | $ | 302 | $ | 331 | $ | 383 | $ | 357 | $ | 291 | (4 | %) | |||||||
Average Assets (in billions of dollars) | $ | 25 | $ | 26 | $ | 26 | $ | 27 | $ | 28 | 12 | % | |||||||
Return on Assets | 4.90 | % | 5.11 | % | 5.84 | % | 5.25 | % | 4.21 | % | |||||||||
Average Risk Capital | $ | 1,595 | $ | 1,758 | $ | 1,855 | $ | 1,967 | $ | 2,073 | 30 | % | |||||||
Return on Risk Capital | 77 | % | 76 | % | 82 | % | 72 | % | 57 | % | |||||||||
Return on Invested Capital | 32 | % | 33 | % | 37 | % | 34 | % | 27 | % | |||||||||
Net Income by Region: | |||||||||||||||||||
Mexico | $ | 127 | $ | 125 | $ | 204 | $ | 108 | $ | 149 | 17 | % | |||||||
EMEA | 32 | 34 | 34 | 88 | 32 | — | |||||||||||||
Japan | 17 | 17 | 17 | 24 | 21 | 24 | % | ||||||||||||
Asia (excluding Japan) | 101 | 117 | 107 | 113 | 54 | (47 | %) | ||||||||||||
Latin America | 25 | 38 | 21 | 24 | 35 | 40 | % | ||||||||||||
Total | $ | 302 | $ | 331 | $ | 383 | $ | 357 | $ | 291 | (4 | %) | |||||||
- NM
- Not meaningful
Reclassified to conform to the current period's presentation.
16
GLOBAL CONSUMER
INTERNATIONAL
CARDS—Page 2
(In millions of dollars)
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
KEY INDICATORS(in billions of dollars) | ||||||||||||||||||||
Average Yield | 17.34 | % | 17.52 | % | 18.08 | % | 18.33 | % | 18.61 | % | ||||||||||
Net Interest Revenue (in millions of dollars) | $ | 647 | $ | 673 | $ | 710 | $ | 746 | $ | 773 | 19 | % | ||||||||
% of Average Loans | 12.26 | % | 12.16 | % | 12.41 | % | 12.65 | % | 12.90 | % | ||||||||||
Net Credit Margin (in millions of dollars)(1) | $ | 945 | $ | 1,019 | $ | 1,041 | $ | 1,178 | $ | 1,061 | 12 | % | ||||||||
% of Average Loans | 17.91 | % | 18.41 | % | 18.19 | % | 19.97 | % | 17.71 | % | ||||||||||
End of Period Loans | $ | 21.6 | $ | 22.5 | $ | 23.1 | $ | 24.1 | $ | 24.1 | 12 | % | ||||||||
EOP Open Accounts (in millions) | 25.2 | 25.9 | 26.5 | 26.5 | 26.7 | 6 | % | |||||||||||||
Purchase Sales (2) | $ | 16.1 | $ | 17.1 | $ | 17.3 | $ | 18.2 | $ | 17.4 | 8 | % | ||||||||
Average Loans: | ||||||||||||||||||||
Mexico | $ | 3.6 | $ | 4.0 | $ | 4.6 | $ | 5.2 | $ | 5.5 | 53 | % | ||||||||
EMEA | 6.0 | 6.3 | 6.2 | 6.0 | 6.1 | 2 | % | |||||||||||||
Japan | 1.3 | 1.3 | 1.3 | 1.3 | 1.3 | — | ||||||||||||||
Asia (excluding Japan) | 9.8 | 9.9 | 9.8 | 10.0 | 10.4 | 6 | % | |||||||||||||
Latin America | 0.7 | 0.7 | 0.8 | 0.9 | 1.0 | 43 | % | |||||||||||||
Total | $ | 21.4 | $ | 22.2 | $ | 22.7 | $ | 23.4 | $ | 24.3 | 14 | % | ||||||||
Coincident Net Credit Loss Ratio | 3.02 | % | 2.84 | % | 2.94 | % | 3.08 | % | 3.64 | % | ||||||||||
12 Month Lagged Net Credit Loss Ratio | 3.83 | % | 3.51 | % | 3.61 | % | 3.56 | % | 4.13 | % | ||||||||||
Loans 90+Days Past Due (in millions of dollars) | $ | 354 | $ | 382 | $ | 411 | $ | 469 | $ | 535 | 51 | % | ||||||||
% of EOP Loans | 1.64 | % | 1.70 | % | 1.78 | % | 1.95 | % | 2.22 | % |
- (1)
- Total Revenues, net of Interest Expense, less Net Credit Losses.
- (2)
- Purchase Sales represents customers' purchased sales plus cash advances.
Reclassified to conform to the current period's presentation.
17
GLOBAL CONSUMER
INTERNATIONAL
CONSUMER FINANCE—Page 1
(In millions of dollars)
For your convenience, an excerpt from our 2006 first quarter earnings press release is set out below. The full text of the press release, and those from prior periods, are available on Citigroup's website at www.citigroup.com.
- —
- In Japan, 11% net income growth was primarily driven by reduced credit costs and lower expenses. Average loans were even with the fourth quarter 2005, as a strong increase in new loan originations offset the continued decline in legacy portfolios. During the quarter, 60 new automated loan machines (ALMs) were added.
- —
- Outside of Japan, revenues and net income increased 16% and 94%, respectively, driven by growth in loans, up 8%, higher net interest margins, and lower expenses. During the quarter, 130 new branches were opened.
- —
- 2006 first quarter results include the impact from SFAS 123(R) charges and tax benefits from the resolution of a federal tax audit. See Schedule A on page 8 of the 1Q06 earnings press release.
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total Revenues, Net of Interest Expense: | ||||||||||||||||||||
Mexico | $ | 43 | $ | 44 | $ | 47 | $ | 50 | $ | 53 | 23 | % | ||||||||
EMEA | 189 | 185 | 185 | 184 | 184 | (3 | %) | |||||||||||||
Japan | 627 | 635 | 609 | 604 | 591 | (6 | %) | |||||||||||||
Asia (excluding Japan) | 61 | 69 | 78 | 86 | 98 | 61 | % | |||||||||||||
Latin America | 28 | 30 | 31 | 34 | 36 | 29 | % | |||||||||||||
Total Revenues, Net of Interest Expense | $ | 948 | $ | 963 | $ | 950 | $ | 958 | $ | 962 | 1 | % | ||||||||
Total Operating Expenses | 437 | 380 | 397 | 398 | 419 | (4 | %) | |||||||||||||
Net Credit Losses | 316 | 321 | 334 | 313 | 319 | 1 | % | |||||||||||||
Credit Reserve Build/(Release) | — | 1 | (10 | ) | — | (16 | ) | — | ||||||||||||
Provision for Benefits & Claims | (1 | ) | — | — | (2 | ) | 1 | NM | ||||||||||||
Provision for Loan Losses and for Benefits and Claims | 315 | 322 | 324 | 311 | 304 | (3 | %) | |||||||||||||
Income Before Taxes | 196 | 261 | 229 | 249 | 239 | 22 | % | |||||||||||||
Income Taxes | 57 | 84 | 77 | 75 | 71 | 25 | % | |||||||||||||
Net Income | $ | 139 | $ | 177 | $ | 152 | $ | 174 | $ | 168 | 21 | % | ||||||||
Average Assets (in billions of dollars) | $ | 27 | $ | 26 | $ | 25 | $ | 26 | $ | 26 | (4 | %) | ||||||||
Return on Assets | 2.09 | % | 2.73 | % | 2.41 | % | 2.66 | % | 2.62 | % | ||||||||||
Average Risk Capital | $ | 934 | $ | 920 | $ | 919 | $ | 897 | $ | 1,165 | 25 | % | ||||||||
Return on Risk Capital | 60 | % | 77 | % | 66 | % | 77 | % | 58 | % | ||||||||||
Return on Invested Capital | 16 | % | 20 | % | 18 | % | 21 | % | 19 | % | ||||||||||
Net Income (loss) by Region: | ||||||||||||||||||||
Mexico | $ | 9 | $ | 8 | $ | 9 | $ | 10 | $ | 10 | 11 | % | ||||||||
EMEA | (4 | ) | 16 | 3 | 21 | 7 | NM | |||||||||||||
Japan | 122 | 137 | 122 | 124 | 135 | 11 | % | |||||||||||||
Asia (excluding Japan) | 9 | 13 | 16 | 17 | 16 | 78 | % | |||||||||||||
Latin America | 3 | 3 | 2 | 2 | — | (100 | %) | |||||||||||||
Total | $ | 139 | $ | 177 | $ | 152 | $ | 174 | $ | 168 | 21 | % | ||||||||
- NM
- Not meaningful
Reclassified to conform to the current period's presentation.
18
GLOBAL CONSUMER
INTERNATIONAL
CONSUMER FINANCE—Page 2
(In millions of dollars)
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
KEY INDICATORS: | ||||||||||||||||||||
Average Loans (in billions of dollars): | ||||||||||||||||||||
Real estate secured loans | $ | 8.3 | $ | 8.1 | $ | 8.0 | $ | 8.2 | $ | 8.1 | (2 | %) | ||||||||
Personal loans | 13.0 | 12.9 | 12.8 | 12.8 | 13.3 | 2 | % | |||||||||||||
Auto | 0.8 | 0.6 | 0.5 | 0.4 | 0.3 | (63 | %) | |||||||||||||
Sales finance and other | 0.7 | 0.8 | 0.6 | 0.7 | 0.7 | — | ||||||||||||||
Total | $ | 22.8 | $ | 22.4 | $ | 21.9 | $ | 22.1 | $ | 22.4 | (2 | %) | ||||||||
Average Yield | 18.31 | % | 18.90 | % | 18.87 | % | 18.63 | % | 19.06 | % | ||||||||||
Net Interest Revenue—(in millions of dollars) | $ | 920 | $ | 930 | $ | 910 | $ | 914 | $ | 921 | — | |||||||||
Net Interest Revenue as a % of Average Loans | 16.36 | % | 16.65 | % | 16.49 | % | 16.41 | % | 16.67 | % | ||||||||||
Net Credit Margin (NCM)—(in millions of dollars) | $ | 632 | $ | 642 | $ | 617 | $ | 645 | $ | 643 | 2 | % | ||||||||
NCM as a % of Average Loans | 11.24 | % | 11.50 | % | 11.18 | % | 11.58 | % | 11.64 | % | ||||||||||
Net Credit Loss Ratio | 5.62 | % | 5.75 | % | 6.03 | % | 5.62 | % | 5.78 | % | ||||||||||
Loans 90+ Days Past Due—(in millions of dollars) | $ | 480 | $ | 477 | $ | 467 | $ | 442 | $ | 437 | (9 | %) | ||||||||
% of EOP Loans | 2.12 | % | 2.17 | % | 2.13 | % | 2.03 | % | 1.93 | % | ||||||||||
Number of Sales Points: | ||||||||||||||||||||
Japan Branches | 405 | 405 | 392 | 325 | 325 | (20 | %) | |||||||||||||
Japan Automated Loan Machines (ALMs) | 523 | 588 | 654 | 682 | 731 | 40 | % | |||||||||||||
Total Japan | 928 | 993 | 1,046 | 1,007 | 1,056 | 14 | % | |||||||||||||
Mexico Branches | 217 | 233 | 255 | 268 | 288 | 33 | % | |||||||||||||
EMEA Branches | 264 | 277 | 282 | 284 | 306 | 16 | % | |||||||||||||
Asia (excluding Japan) Branches | 224 | 250 | 293 | 418 | 489 | NM | ||||||||||||||
Latin America Branches | 118 | 128 | 138 | 160 | 180 | 53 | % | |||||||||||||
Total | 1,751 | 1,881 | 2,014 | 2,137 | 2,319 | 32 | % | |||||||||||||
Japan: | ||||||||||||||||||||
Average Loans (in billions of dollars) | $ | 10.9 | $ | 10.5 | $ | 10.0 | $ | 9.6 | $ | 9.6 | (12 | %) | ||||||||
Net Credit Loss Ratio | 9.25 | % | 9.68 | % | 9.77 | % | 9.92 | % | 9.12 | % | ||||||||||
Net Income (in millions of dollars) | $ | 122 | $ | 137 | $ | 122 | $ | 124 | $ | 135 | 11 | % |
- NM
- Not meaningful
Reclassified to conform to the current period's presentation.
19
GLOBAL CONSUMER
INTERNATIONAL
RETAIL BANKING—Page 1
(In millions of dollars)
For your convenience, an excerpt from our 2006 first quarter earnings press release is set out below. The full text of the press release, and those from prior periods, are available on Citigroup's website at www.citigroup.com.
- —
- Revenue and net income growth reflected a 6% increase in deposits, 37% growth in investment product sales and higher net interest margins. Loan balances declined slightly from the prior-year period, as growth in Mexico, Japan and Latin America was offset by a decline in EMEA, due to loan write-offs in the third quarter 2005, and the impact of labor actions in Korea.
- —
- Expenses included continued investment spending, with 72 new branch openings during the quarter, and costs associated with a labor settlement in Korea.
- —
- 2006 first quarter results include the impact from SFAS 123(R) charges and tax benefits from the resolution of a federal tax audit. See Schedule A on page 8 of the 1Q06 earnings press release.
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total Revenues, Net of Interest Expense: | ||||||||||||||||||||
Mexico | $ | 648 | $ | 704 | $ | 739 | $ | 787 | $ | 691 | 7% | |||||||||
EMEA | 765 | 786 | 784 | 846 | 792 | 4% | ||||||||||||||
Japan | 121 | 116 | 118 | 119 | 114 | (6% | ) | |||||||||||||
Asia (excluding Japan) | 610 | 624 | 649 | 621 | 676 | 11% | ||||||||||||||
Latin America | 161 | 166 | 184 | 179 | 194 | 20% | ||||||||||||||
Total Revenues, Net of Interest Expense | 2,305 | 2,396 | 2,474 | 2,552 | 2,467 | 7% | ||||||||||||||
Total Operating Expenses | 1,417 | 1,363 | 1,322 | 1,435 | 1,585 | 12% | ||||||||||||||
Net Credit Losses | 179 | 181 | 1,288 | 234 | 184 | 3% | ||||||||||||||
Credit Reserve Build / (Release) | (9 | ) | 19 | (649 | ) | 51 | (77 | ) | NM | |||||||||||
Provision for Benefits & Claims | 33 | 33 | 42 | 50 | 44 | 33% | ||||||||||||||
Provision for Loan Losses and for Benefits and Claims | 203 | 233 | 681 | 335 | 151 | (26% | ) | |||||||||||||
Income Before Taxes and Minority Interest | 685 | 800 | 471 | 782 | 731 | 7% | ||||||||||||||
Income Taxes and Minority Interest | 187 | 207 | 44 | 217 | 54 | (71% | ) | |||||||||||||
Net Income | $ | 498 | $ | 593 | $ | 427 | $ | 565 | $ | 677 | 36% | |||||||||
Average Assets (in billions of dollars) | $ | 113 | $ | 114 | $ | 115 | $ | 116 | $ | 119 | 5% | |||||||||
Return on Assets | 1.79 | % | 2.09 | % | 1.47 | % | 1.93 | % | 2.31 | % | ||||||||||
Average Risk Capital | $ | 9,983 | $ | 10,663 | $ | 10,802 | $ | 9,764 | $ | 9,407 | ||||||||||
Return on Risk Capital | 20 | % | 22 | % | 16 | % | 23 | % | 29 | % | ||||||||||
Return on Invested Capital | 12 | % | 13 | % | 9 | % | 12 | % | 15 | % | ||||||||||
Net Income (loss) by Region: | ||||||||||||||||||||
Mexico | $ | 141 | $ | 235 | $ | 298 | $ | 158 | $ | 199 | 41% | |||||||||
EMEA | 94 | 74 | (191 | ) | 173 | 146 | 55% | |||||||||||||
Japan | 36 | 34 | 30 | 26 | 32 | (11% | ) | |||||||||||||
Asia (excluding Japan) | 201 | 211 | 252 | 193 | 277 | 38% | ||||||||||||||
Latin America | 26 | 39 | 38 | 15 | 23 | (12% | ) | |||||||||||||
Total | $ | 498 | $ | 593 | $ | 427 | $ | 565 | $ | 677 | 36% | |||||||||
KEY INDICATORS: | ||||||||||||||||||||
Net Interest Revenue | $ | 1,435 | $ | 1,516 | $ | 1,375 | $ | 1,404 | $ | 1,439 | — | |||||||||
Net Credit Loss Ratio | 1.17 | % | 1.17 | % | 8.20 | % | 1.53 | % | 1.21 | % | ||||||||||
Loans 90+Days Past Due (in millions of dollars) | $ | 2,013 | $ | 1,901 | $ | 770 | $ | 779 | $ | 736 | (63% | ) | ||||||||
% of EOP Loans | 3.26 | % | 3.09 | % | 1.26 | % | 1.29 | % | 1.21 | % | ||||||||||
Branches by Region: | ||||||||||||||||||||
Mexico | 1,346 | 1,334 | 1,335 | 1,382 | 1,404 | 4% | ||||||||||||||
EMEA | 612 | 619 | 618 | 625 | 636 | 4% | ||||||||||||||
Japan | 25 | 25 | 25 | 25 | 25 | — | ||||||||||||||
Asia (excluding Japan) | 354 | 394 | 396 | 401 | 403 | 14% | ||||||||||||||
Latin America | 153 | 158 | 162 | 176 | 179 | 17% | ||||||||||||||
Total | 2,490 | 2,530 | 2,536 | 2,609 | 2,647 | 6% | ||||||||||||||
NM Not meaningful
Reclassified to conform to the current period's presentation.
20
GLOBAL CONSUMER
INTERNATIONAL
RETAIL BANKING—Page 2
(In millions of dollars)
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
KEY INDICATORS (Continued): | ||||||||||||||||||||
International—Balances (in billions of dollars) | ||||||||||||||||||||
Checking, Savings & Money Market Deposits | $ | 72.5 | $ | 71.0 | $ | 70.6 | $ | 72.2 | $ | 76.8 | 6 | % | ||||||||
Time Deposits, CDs and Other | 63.2 | 63.3 | 65.5 | 66.8 | 67.7 | 7 | % | |||||||||||||
Total Average Deposits | $ | 135.7 | $ | 134.3 | $ | 136.1 | $ | 139.0 | $ | 144.5 | 6 | % | ||||||||
Investment Sales (in millions of dollars) | $ | 12.5 | $ | 11.4 | $ | 13.6 | $ | 13.3 | $ | 17.1 | 37 | % | ||||||||
Investment AUMs (EOP) | $ | 74.8 | $ | 76.4 | $ | 81.4 | $ | 83.3 | $ | 90.1 | 20 | % | ||||||||
Other (primarily Retirement Services) | 31.0 | 32.3 | 34.9 | 37.2 | 40.3 | 30 | % | |||||||||||||
Total AUMs | $ | 105.8 | $ | 108.7 | $ | 116.3 | $ | 120.5 | $ | 130.4 | 23 | % | ||||||||
Average Customer Deposits by Region (in billions of dollars): | ||||||||||||||||||||
Mexico | $ | 23.0 | $ | 23.1 | $ | 23.6 | $ | 25.4 | $ | 25.9 | 13 | % | ||||||||
EMEA | 25.9 | 25.3 | 26.7 | 28.1 | 31.0 | 20 | % | |||||||||||||
Japan | 21.9 | 21.2 | 21.1 | 20.7 | 20.8 | (5 | %) | |||||||||||||
Asia (excluding Japan) | 57.9 | 57.6 | 57.7 | 57.7 | 59.6 | 3 | % | |||||||||||||
Latin America | 7.0 | 7.1 | 7.0 | 7.1 | 7.2 | 3 | % | |||||||||||||
Total | $ | 135.7 | $ | 134.3 | $ | 136.1 | $ | 139.0 | $ | 144.5 | 6 | % | ||||||||
Average Loans by Region (in billions of dollars): | ||||||||||||||||||||
Mexico | $ | 7.3 | $ | 7.6 | $ | 7.8 | $ | 8.0 | $ | 8.2 | 12 | % | ||||||||
EMEA | 19.3 | 18.7 | 18.5 | 17.2 | 17.4 | (10 | %) | |||||||||||||
Japan | 0.3 | 0.2 | 0.7 | 0.7 | 0.7 | NM | ||||||||||||||
Asia (excluding Japan) | 34.3 | 34.6 | 34.4 | 33.8 | 34.1 | (1 | %) | |||||||||||||
Latin America | 0.8 | 0.8 | 0.9 | 1.0 | 1.1 | 38 | % | |||||||||||||
Total | $ | 62.0 | $ | 61.9 | $ | 62.3 | $ | 60.7 | $ | 61.5 | (1 | %) | ||||||||
Average Loans by Type (in billions of dollars): | ||||||||||||||||||||
Mortgage | $ | 23.3 | $ | 23.6 | $ | 23.5 | $ | 23.1 | $ | 23.3 | — | |||||||||
Auto | 2.7 | 2.7 | 2.6 | 2.4 | 2.3 | (15 | %) | |||||||||||||
Personal | 26.4 | 26.3 | 26.5 | 25.5 | 26.2 | (1 | %) | |||||||||||||
Commercial | 7.7 | 7.8 | 7.8 | 7.9 | 8.1 | 5 | % | |||||||||||||
Other | 1.9 | 1.5 | 1.9 | 1.8 | 1.6 | (16 | %) | |||||||||||||
Total | $ | 62.0 | $ | 61.9 | $ | 62.3 | $ | 60.7 | $ | 61.5 | (1 | %) | ||||||||
EOP Accounts by Region: | ||||||||||||||||||||
Mexico | 17.1 | 17.5 | 17.9 | 18.1 | 18.5 | 8 | % | |||||||||||||
EMEA | 8.4 | 8.6 | 8.7 | 8.9 | 9.0 | 7 | % | |||||||||||||
Japan | 2.1 | 2.1 | 2.1 | 2.0 | 2.0 | (5 | %) | |||||||||||||
Asia (excluding Japan) | 11.7 | 11.9 | 12.2 | 12.0 | 12.0 | 3 | % | |||||||||||||
Latin America | 6.4 | 6.5 | 6.6 | 6.7 | 5.5 | (14 | %) | |||||||||||||
Total | 45.7 | 46.6 | 47.5 | 47.7 | 47.0 | 3 | % | |||||||||||||
NM Not meaningful
Reclassified to conform to the current period's presentation.
21
CORPORATE AND INVESTMENT BANKING
(In millions of dollars)
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Corporate and Investment Banking: | ||||||||||||||||||
Total Revenues, Net of Interest Expense | $ | 6,037 | $ | 5,156 | $ | 6,434 | $ | 6,236 | $ | 7,279 | 21 | % | ||||||
Total Operating Expenses | 3,668 | 3,368 | 3,856 | 3,241 | 4,757 | 30 | % | |||||||||||
Total Provision for Loan Losses | (56 | ) | (14 | ) | 43 | (15 | ) | — | 100 | % | ||||||||
Income Before Taxes and Minority Interest | 2,425 | 1,802 | 2,535 | 3,010 | 2,522 | 4 | % | |||||||||||
Income Taxes | 735 | 420 | 704 | 959 | 574 | (22 | %) | |||||||||||
Minority Interest, Net of Tax | 11 | 10 | 34 | 4 | 19 | 73 | % | |||||||||||
Net Income | $ | 1,679 | $ | 1,372 | $ | 1,797 | $ | 2,047 | $ | 1,929 | 15 | % | ||||||
U.S.: | ||||||||||||||||||
Total Revenues, Net of Interest Expense | $ | 2,779 | $ | 1,948 | $ | 2,810 | $ | 2,364 | $ | 2,923 | 5 | % | ||||||
Total Operating Expenses | 1,451 | 1,347 | 1,740 | 901 | 2,251 | 55 | % | |||||||||||
Total Provision for Loan Losses | 21 | 90 | 98 | (8 | ) | 52 | NM | |||||||||||
Income Before Taxes and Minority Interest | 1,307 | 511 | 972 | 1,471 | 620 | (53 | %) | |||||||||||
Income Taxes | 410 | 47 | 314 | 515 | 94 | (77 | %) | |||||||||||
Minority Interest, Net of Tax | 4 | 2 | 21 | (2 | ) | 11 | NM | |||||||||||
Net Income | $ | 893 | $ | 462 | $ | 637 | $ | 958 | $ | 515 | (42 | %) | ||||||
International: | ||||||||||||||||||
Total Revenues, Net of Interest Expense | $ | 3,258 | $ | 3,208 | $ | 3,624 | $ | 3,872 | $ | 4,356 | 34 | % | ||||||
Total Operating Expenses | 2,217 | 2,021 | 2,116 | 2,340 | 2,506 | 13 | % | |||||||||||
Total Provision for Loan Losses | (77 | ) | (104 | ) | (55 | ) | (7 | ) | (52 | ) | 32 | % | ||||||
Income Before Taxes and Minority Interest | 1,118 | 1,291 | 1,563 | 1,539 | 1,902 | 70 | % | |||||||||||
Income Taxes | 325 | 373 | 390 | 444 | 480 | 48 | % | |||||||||||
Minority Interest, Net of Tax | 7 | 8 | 13 | 6 | 8 | 14 | % | |||||||||||
Net Income | $ | 786 | $ | 910 | $ | 1,160 | $ | 1,089 | $ | 1,414 | 80 | % | ||||||
NM Not meaningful
Reclassified to conform to the current period's presentation.
22
CORPORATE AND INVESTMENT BANKING
INCOME STATEMENT
(In millions of dollars)
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenues: | |||||||||||||||||||||
Commissions and Fees | $ | 601 | $ | 545 | $ | 595 | $ | 623 | $ | 682 | 13 | % | |||||||||
Asset Management and Administration Fees | 696 | 701 | 695 | 686 | 756 | 9 | % | ||||||||||||||
Investment Banking | 805 | 870 | 973 | 1,044 | 1,078 | 34 | % | ||||||||||||||
Principal Transactions | 1,533 | 572 | 2,041 | 1,207 | 2,150 | 40 | % | ||||||||||||||
Other | 253 | 446 | 214 | 663 | 379 | 50 | % | ||||||||||||||
Total Non-Interest Revenues | 3,888 | 3,134 | 4,518 | 4,223 | 5,045 | 30 | % | ||||||||||||||
Net Interest and Dividends | 2,149 | 2,022 | 1,916 | 2,013 | 2,234 | 4 | % | ||||||||||||||
Total Revenues, Net of Interest Expense | 6,037 | 5,156 | 6,434 | 6,236 | 7,279 | 21 | % | ||||||||||||||
Non-Interest Expenses: | |||||||||||||||||||||
Compensation and Benefits | 2,227 | 1,894 | 2,463 | 2,013 | 3,178 | 43 | % | ||||||||||||||
Other Operating and Administrative Expenses | 1,441 | 1,474 | 1,393 | 1,228 | 1,579 | 10 | % | ||||||||||||||
Total Non-Interest Expenses | 3,668 | 3,368 | 3,856 | 3,241 | 4,757 | 30 | % | ||||||||||||||
Provision for Loan Losses | (56 | ) | (114 | ) | (57 | ) | (65 | ) | (50 | ) | 11 | % | |||||||||
Provision for Unfunded Lending Commitments | — | 100 | 100 | 50 | 50 | — | |||||||||||||||
Total Provision for Credit Losses | (56 | ) | (14 | ) | 43 | (15 | ) | — | 100 | % | |||||||||||
Income (Loss) Before Taxes and Minority Interest | 2,425 | 1,802 | 2,535 | 3,010 | 2,522 | 4 | % | ||||||||||||||
Income Taxes (Benefits) | 735 | 420 | 704 | 959 | 574 | (22 | %) | ||||||||||||||
Minority Interest, Net of Tax | 11 | 10 | 34 | 4 | 19 | 73 | % | ||||||||||||||
Net Income (Loss) | $ | 1,679 | $ | 1,372 | $ | 1,797 | $ | 2,047 | $ | 1,929 | 15 | % | |||||||||
Pre-tax Profit Margin | 40.2 | % | 34.9 | % | 39.4 | % | 48.3 | % | 34.6 | % | |||||||||||
Compensation and Benefits Expenses as a Percent of Net Revenues(1)(2)(3) | 32.9 | % | 36.7 | % | 38.3 | % | 34.4 | % | 43.7 | % | |||||||||||
Non-Compensation Expenses as a Percent of Net Revenues(2) | 23.9 | % | 28.6 | % | 21.7 | % | 21.0 | % | 21.7 | % |
- (1)
- The 2005 first quarter period excludes Expenses of $243 million (pretax) related to the repositioning of certain CIB businesses.
- (2)
- The 2005 fourth quarter period excludes Revenues of $386 million (pretax) related to the gain on sale of Nikko shares.
- (3)
- The 2006 first quarter period includes $449 million related to the adoption of SFAS 123(R).
Reclassified to conform to the current period's presentation.
23
CIB
CIB REVENUE DETAILS
(In millions of dollars)
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue Details: | ||||||||||||||||||||||
Investment Banking Revenue: | ||||||||||||||||||||||
Advisory and Other Fees | $ | 256 | $ | 264 | $ | 333 | $ | 359 | $ | 295 | 15 | % | ||||||||||
Equity Underwriting | 269 | 254 | 298 | 315 | 286 | 6 | % | |||||||||||||||
Debt Underwriting | 500 | 514 | 568 | 569 | 713 | 43 | % | |||||||||||||||
Revenue Allocated to the Global Wealth Management Segment: | ||||||||||||||||||||||
Equity Underwriting | (95 | ) | (74 | ) | (79 | ) | (61 | ) | (42 | ) | 56 | % | ||||||||||
Debt Underwriting | (22 | ) | (27 | ) | (36 | ) | (28 | ) | (36 | ) | (64 | %) | ||||||||||
Total Investment Banking Revenue | 908 | 931 | 1,084 | 1,154 | 1,216 | 34 | % | |||||||||||||||
Lending | 510 | 543 | 531 | 681 | 411 | (19 | %) | |||||||||||||||
Equity Markets | 707 | 728 | 872 | 767 | 1,179 | 67 | % | |||||||||||||||
Fixed Income Markets | 2,916 | 1,827 | 2,770 | 2,086 | 3,148 | 8 | % | |||||||||||||||
Other Capital Markets and Banking | (142 | ) | (64 | ) | (70 | ) | 231 | (58 | ) | 59 | % | |||||||||||
Total Capital Markets and Banking Revenues (1) | 4,899 | 3,965 | 5,187 | 4,919 | 5,896 | 20 | % | |||||||||||||||
Transaction Services | 1,137 | 1,191 | 1,246 | 1,317 | 1,382 | 22 | % | |||||||||||||||
Other | 1 | — | 1 | — | 1 | — | ||||||||||||||||
Total CIB Revenues | $ | 6,037 | $ | 5,156 | $ | 6,434 | $ | 6,236 | $ | 7,279 | 21 | % | ||||||||||
- (1)
- Capital Markets and Banking revenues reflect Citigroup's portion (49%) of the results of the Nikko Citigroup Joint Venture on each respective line with an offset in Other Capital Markets and Banking to conform to the GAAP presentation.
Reclassified to conform to the current period's presentation.
24
CIB
CAPITAL MARKETS AND BANKING
(In millions of dollars)
For your convenience, an excerpt from our 2006 first quarter earnings press release is set out below. The full text of the press release, and those from prior periods, are available on Citigroup's website at www.citigroup.com.
- —
- Record fixed income markets revenues of $3.15 billion, up 8%, reflected broad-based performance across products and regions, including record results in emerging markets trading, municipals and credit products. Compared to the fourth quarter 2005, fixed income market revenues increased 51%.
- —
- Record equity markets revenues of $1.18 billion, up 67%, were driven by strong growth globally, including cash trading, derivatives, and convertibles.
- —
- Record investment banking revenues increased 34%, driven by higher debt underwriting and advisory fees.
- —
- Lending revenues declined 19%, as improved credit conditions led to lower hedging results.
- —
- Expense growth was primarily driven by higher compensation expense.
- —
- 2006 first quarter results include the impact from SFAS 123(R) charges and tax benefits from the resolution of a federal tax audit. See Schedule A on page 8 of the 1Q06 earnings press release.
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total Revenues, Net of Interest Expense | $ | 4,899 | $ | 3,965 | $ | 5,187 | $ | 4,919 | $ | 5,896 | 20 | % | |||||||
Total Operating Expenses | 2,859 | 2,585 | 3,134 | 2,923 | 3,803 | 33 | % | ||||||||||||
Provision for Loan Losses | (46 | ) | (116 | ) | (55 | ) | (82 | ) | (51 | ) | (11 | %) | |||||||
Provision for Unfunded Lending Commitments | — | 96 | 95 | 47 | 46 | — | |||||||||||||
Total Provision for Credit Losses | (46 | ) | (20 | ) | 40 | (35 | ) | (5 | ) | 89 | % | ||||||||
Income Before Taxes and Minority Interest | 2,086 | 1,400 | 2,013 | 2,031 | 2,098 | 1 | % | ||||||||||||
Income Taxes | 637 | 347 | 555 | 606 | 461 | (28 | %) | ||||||||||||
Minority Interest, Net of Tax | 10 | 10 | 34 | 4 | 19 | 90 | % | ||||||||||||
Net Income | $ | 1,439 | $ | 1,043 | $ | 1,424 | $ | 11,421 | 1,618 | 12 | % | ||||||||
Average Risk Capital | $ | 19,344 | $ | 19,694 | $ | 20,143 | $ | 20,411 | $ | 19,123 | (1 | %) | |||||||
Return on Risk Capital | 30 | % | 21 | % | 28 | % | 28 | % | 34 | % | |||||||||
Return on Invested Capital | 23 | % | 16 | % | 21 | % | 21 | % | 26 | % | |||||||||
Investment Banking | |||||||||||||||||||
Global Debt, Equity and Equity-related Underwriting: | |||||||||||||||||||
Global Volume (1) | $ | 152,093 | $ | 149,906 | $ | 128,780 | $ | 141,546 | $ | 178,780 | 18 | % | |||||||
Global Market Share | 8.9 | % | 8.8 | % | 8.5 | % | 8.4 | % | 9.6 | % | |||||||||
Rank | 1 | 1 | 1 | 1 | 1 | ||||||||||||||
U.S. Volume (1) | $ | 94,089 | $ | 105,780 | $ | 91,948 | $ | 96,173 | $ | 112,719 | 20 | % | |||||||
U.S. Market Share | 10.3 | % | 10.8 | % | 9.3 | % | 9.6 | % | 11.1 | % | |||||||||
Rank | 1 | 1 | 1 | 1 | 1 |
- (1)
- Full credit to book manager. Market volumes and shares sourced from Thomson Financial Securities Data.
Reclassified to conform to the current period's presentation.
25
CIB
TRANSACTION SERVICES
(In millions of dollars)
For your convenience, an excerpt from our 2006 first quarter earnings press release is set out below. The full text of the press release, and those from prior periods, are available on Citigroup's website at www.citigroup.com.
- —
- Record revenues, up 22%, were driven by higher customer volumes, reflecting increased liability balances, up 14%; assets under custody, up 10%; and the positive impact of higher short-term interest rates.
- —
- Expenses increased 18%, primarily driven by increased business volumes, investment in growth initiatives, and acquisitions.
- —
- 2006 first quarter results include the impact from SFAS 123(R) charges and tax benefits from the resolution of a federal tax audit. See Schedule A on page 8 of the 1Q06 earnings press release.
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total Revenues, Net of Interest Expense | $ | 1,137 | $ | 1,191 | $ | 1,246 | $ | 1,317 | $ | 1,382 | 22 | % | |||||||
Total Operating Expenses | 803 | 780 | 809 | 924 | 949 | 18 | % | ||||||||||||
Provision for Loan Losses | (13 | ) | 2 | 1 | 17 | 1 | NM | ||||||||||||
Provision for Unfunded Lending Commitments | — | 4 | 5 | 3 | 4 | — | |||||||||||||
Total Provision for Credit Losses | (13 | ) | 6 | 6 | 20 | 5 | NM | ||||||||||||
Income Before Taxes and Minority Interest | 347 | 405 | 431 | 373 | 428 | 23 | % | ||||||||||||
Income Taxes | 102 | 117 | 104 | 98 | 105 | 3 | % | ||||||||||||
Net Income | $ | 245 | $ | 288 | $ | 327 | $ | 275 | $ | 323 | 32 | % | |||||||
Average Risk Capital | $ | 1,435 | $ | 1,403 | $ | 1,240 | $ | 1,234 | $ | 1,470 | |||||||||
Return on Risk Capital | 69 | % | 82 | % | 105 | % | 88 | % | 89 | % | |||||||||
Return on Invested Capital | 40 | % | 46 | % | 56 | % | 47 | % | 50 | % | |||||||||
Revenue Details: | |||||||||||||||||||
Cash Management | $ | 658 | $ | 694 | $ | 729 | $ | 783 | $ | 792 | 20 | % | |||||||
Securities Services | 336 | 348 | 363 | 390 | 438 | 30 | % | ||||||||||||
Trade | 143 | 149 | 154 | 144 | 152 | 6 | % | ||||||||||||
Total Revenues, Net of Interest Expense | $ | 1,137 | $ | 1,191 | $ | 1,246 | $ | 1,317 | $ | 1,382 | 22 | % | |||||||
Liability Balances (Average in billions) | $ | 139 | $ | 141 | $ | 147 | $ | 155 | $ | 158 | 14 | % | |||||||
Assets Under Custody (EOP in trillions) | $ | 8.0 | $ | 8.0 | $ | 8.4 | $ | 8.6 | $ | 8.8 | 10 | % |
NM- Not meaningful
Reclassified to conform to the current period's presentation.
26
GLOBAL WEALTH MANAGEMENT
(In millions of dollars)
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Global Wealth Management: | ||||||||||||||||||
Fee-Based and Net Interest Revenue | $ | 1,312 | $ | 1,308 | $ | 1,345 | $ | 1,405 | $ | 1,603 | 22 | % | ||||||
Commissions and Other Transactional Revenue | 861 | 792 | 829 | 832 | 880 | 2 | % | |||||||||||
Total Revenues, Net of Interest Expense | $ | 2,173 | $ | 2,100 | $ | 2,174 | $ | 2,237 | $ | 2,483 | 14 | % | ||||||
Total Operating Expenses | 1,690 | 1,586 | 1,673 | 1,747 | 2,055 | 22 | % | |||||||||||
Total Provision for Loan Losses | (16 | ) | — | 30 | 15 | 5 | NM | |||||||||||
Income Before Taxes | 499 | 514 | 471 | 475 | 423 | (15 | )% | |||||||||||
Income Taxes | 180 | 192 | 165 | 178 | 136 | (24 | )% | |||||||||||
Net Income | $ | 319 | $ | 322 | $ | 306 | $ | 297 | $ | 287 | (10 | )% | ||||||
U.S.: | ||||||||||||||||||
Total Revenues, Net of Interest Expense | $ | 1,872 | $ | 1,852 | $ | 1,923 | $ | 1,981 | $ | 2,154 | 15 | % | ||||||
Total Operating Expenses | 1,448 | 1,348 | 1,465 | 1,538 | 1,805 | 25 | % | |||||||||||
Total Provision for Loan Losses | (8 | ) | — | 12 | 17 | 5 | NM | |||||||||||
Income Before Taxes | 432 | 504 | 446 | 426 | 344 | (20 | )% | |||||||||||
Income Taxes | 159 | 189 | 158 | 161 | 116 | (27 | )% | |||||||||||
Net Income | $ | 273 | $ | 315 | $ | 288 | $ | 265 | $ | 228 | (16 | )% | ||||||
International: | ||||||||||||||||||
Total Revenues, Net of Interest Expense | $ | 301 | $ | 248 | $ | 251 | $ | 256 | $ | 329 | 9 | % | ||||||
Total Operating Expenses | 242 | 238 | 208 | 209 | 250 | 3 | % | |||||||||||
Total Provision for Loan Losses | (8 | ) | — | 18 | (2 | ) | — | 100 | % | |||||||||
Income (Loss) Before Taxes | 67 | 10 | 25 | 49 | 79 | 18 | % | |||||||||||
Income Taxes (Benefits) | 21 | 3 | 7 | 17 | 20 | (5 | )% | |||||||||||
Net Income (Loss) | $ | 46 | $ | 7 | $ | 18 | $ | 32 | $ | 59 | 28 | % | ||||||
NM Not meaningful
Reclassified to conform to the current period's presentation.
27
GLOBAL WEALTH MANAGEMENT
SMITH BARNEY
(In millions of dollars)
For your convenience, an excerpt from our 2006 first quarter earnings press release is set out below. The full text of the press release, and those from prior periods, are available on Citigroup's website at www.citigroup.com.
- —
- Record revenues were driven by a 32% increase in fee-based revenues and a 4% increase in transactional revenues, reflecting increased customer volumes and the acquisition of Legg Mason's retail brokerage business.
- —
- Assets under fee-based management increased 33% to $319 billion, reflecting both organic growth and the addition of Legg Mason client assets.
- —
- The pre-tax margin of 13% reflected higher compensation expense, including the impact of SFAS 123R charges, and integration costs of the Legg Mason retail brokerage business.
- —
- 2006 first quarter results include the impact from SFAS 123(R) charges and tax benefits from the resolution of a federal tax audit. See Schedule A on page 8 of the 1Q06 earnings press release.
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenues: | |||||||||||||||||||
Fee-Based and Net Interest Revenue | $ | 911 | $ | 956 | $ | 986 | $ | 1,039 | $ | 1,200 | 32 | % | |||||||
Commissions and Other Transactional Revenue | 758 | 691 | 742 | 742 | 787 | 4 | % | ||||||||||||
Total Revenues, Net of Interest Expense | 1,669 | 1,647 | 1,728 | 1,781 | 1,987 | 19 | % | ||||||||||||
Total Operating Expenses | 1,351 | 1,252 | 1,366 | 1,436 | 1,720 | 27 | % | ||||||||||||
Provision for Loan Losses | — | 4 | 7 | 1 | 1 | — | |||||||||||||
Income Before Taxes | 318 | 391 | 355 | 344 | 266 | (16 | )% | ||||||||||||
Income Taxes | 121 | 152 | 128 | 136 | 98 | (19 | )% | ||||||||||||
Net Income | $ | 197 | $ | 239 | $ | 227 | $ | 208 | $ | 168 | (15 | )% | |||||||
Pretax Profit Margin | 19 | % | 24 | % | 21 | % | 19 | % | 13 | % | |||||||||
Average Risk Capital | $ | 876 | $ | 927 | $ | 958 | $ | 989 | $ | 1,457 | 66 | % | |||||||
Return on Risk Capital | 91 | % | 103 | % | 94 | % | 83 | % | 47 | % | |||||||||
Return on Invested Capital | 63 | % | 73 | % | 67 | % | 42 | % | 24 | % | |||||||||
Financial Advisors | 12,189 | 12,150 | 12,111 | 13,414 | 13,321 | 9 | % | ||||||||||||
Annualized Revenue per FA (000) | $ | 556 | $ | 538 | $ | 565 | $ | 566 | $ | 597 | 7 | % | |||||||
Branch offices | 522 | 518 | 517 | 640 | 635 | 22 | % | ||||||||||||
Assets (in billions of dollars): | |||||||||||||||||||
Total Client Assets | $ | 969 | $ | 987 | $ | 1,015 | $ | 1,130 | $ | 1,167 | 20 | % | |||||||
Net Client Asset Flows | $ | 13 | $ | 5 | $ | 66 | 4 | $ | 3 | (77 | )% | ||||||||
Client Assets Under Fee-Based Management: | |||||||||||||||||||
Consulting Group and Other Advisory Accounts | $ | 155 | $ | 159 | $ | 168 | $ | 177 | $ | 189 | 22 | % | |||||||
Financial Advisor Managed Accounts | 84 | 86 | 90 | 121 | 130 | 55 | % | ||||||||||||
Total Smith Barney | $ | 239 | $ | 245 | $ | 258 | $ | 298 | $ | 319 | 33 | % | |||||||
Reclassified to conform to the current period's presentation.
28
GLOBAL WEALTH MANAGEMENT
PRIVATE BANK
(In millions of dollars)
For your convenience, an excerpt from our 2006 first quarter earnings press release is set out below. The full text of the press release, and those from prior periods, are available on Citigroup's website at www.citigroup.com.
- —
- Revenues declined, primarily due to the absence of the Japan business, which ceased business operations at the end of September 2005.
- —
- Excluding Japan, revenues increased 3%, driven by increased customer business volumes, up 8% to $222 billion. Income declined 9%, reflecting higher compensation expense and increased credit costs.
- —
- 2006 first quarter results include the impact from SFAS 123(R) charges and tax benefits from the resolution of a federal tax audit. See Schedule A on page 8 of the 1Q06 earnings press release.
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total Revenues, Net of Interest Expense | $ | 504 | $ | 453 | $ | 446 | $ | 456 | $ | 496 | (2 | )% | |||||||||
Total Operating Expenses | 339 | 334 | 307 | 311 | 335 | (1 | )% | ||||||||||||||
Provision for Loan Losses | (16 | ) | (4 | ) | 23 | 14 | 4 | NM | |||||||||||||
Income (Loss) Before Taxes | 181 | 123 | 116 | 131 | 157 | (13 | )% | ||||||||||||||
Income Taxes (Benefits) | 59 | 40 | 37 | 42 | 38 | (36 | )% | ||||||||||||||
Net Income (Loss) | $ | 122 | $ | 83 | $ | 79 | $ | 89 | $ | 119 | (2 | )% | |||||||||
Pretax Profit Margin | 36 | % | 27 | % | 26 | % | 29 | % | 32 | % | |||||||||||
Average Risk Capital | $ | 1,117 | $ | 1,165 | $ | 1,195 | $ | 1,222 | $ | 1,082 | (3 | )% | |||||||||
Return on Risk Capital | 44 | % | 29 | % | 26 | % | 29 | % | 45 | % | |||||||||||
Return on Invested Capital | 42 | % | 26 | % | 24 | % | 26 | % | 42 | % | |||||||||||
Client Business Volumes (in billions of dollars): | |||||||||||||||||||||
Client Assets Under Fee-Based Management | $ | 49 | $ | 49 | $ | 49 | $ | 48 | $ | 50 | 2 | % | |||||||||
Banking and Fiduciary Deposits | 46 | 46 | 46 | 48 | 47 | 2 | % | ||||||||||||||
Investment Finance | 42 | 43 | 40 | 42 | 42 | — | |||||||||||||||
Other, Principally Custody Accounts | 81 | 79 | 80 | 84 | 83 | 2 | % | ||||||||||||||
Total Client Business Volumes | $ | 218 | $ | 217 | $ | 215 | $ | 222 | $ | 222 | 2 | % | |||||||||
Revenues: | |||||||||||||||||||||
Recurring Fee-Based and Net Interest Revenues (1) | $ | 401 | $ | 352 | $ | 359 | $ | 366 | $ | 403 | — | ||||||||||
Transactional Revenues | 103 | 101 | 87 | 90 | 93 | (10 | )% | ||||||||||||||
Total Revenues | $ | 504 | $ | 453 | $ | 446 | $ | 456 | $ | 496 | (2 | )% | |||||||||
U.S. | $ | 203 | $ | 205 | $ | 195 | $ | 200 | $ | 210 | 3 | % | |||||||||
International | 301 | 248 | 251 | 256 | 286 | (5 | )% | ||||||||||||||
$ | 504 | $ | 453 | $ | 446 | $ | 456 | $ | 496 | (2 | )% | ||||||||||
Net Credit Loss Ratio | (0.05 | )% | (0.05 | )% | (0.01 | )% | 0.04 | % | (0.04 | )% |
- (1)
- Includes treasury revenue, which was previously disclosed separately.
NM Not meaningful
Reclassified to conform to the current period's presentation.
29
ALTERNATIVE INVESTMENTS (1)
(In millions of dollars)
For your convenience, an excerpt from our 2006 first quarter earnings press release is set out below. The full text of the press release, and those from prior periods, are available on Citigroup's website at www.citigroup.com.
- —
- Revenues and net income declined due to lower results in private equity, which were partially offset by higher mark-to-market and realized gains in other asset classes.
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total Revenues, Net of Interest Expense | $ | 866 | $ | 1,112 | $ | 720 | $ | 732 | $ | 675 | (22 | )% | ||||||
Total Operating Expenses | 105 | 159 | 167 | 202 | 181 | 72 | % | |||||||||||
Provision for Loan Losses | — | — | (2 | ) | — | — | — | |||||||||||
Income Before Taxes and Minority Interest | 761 | 953 | 555 | 530 | 494 | (35 | )% | |||||||||||
Income Taxes | 267 | 334 | 181 | 168 | 111 | (58 | )% | |||||||||||
Minority Interest, Net of Tax | 132 | 234 | 35 | 11 | 30 | (77 | )% | |||||||||||
Net Income | $ | 362 | $ | 385 | $ | 339 | $ | 351 | $ | 353 | (2 | )% | ||||||
Assets (in billions) | $ | 9.7 | $ | 10.9 | $ | 11.4 | $ | 12.9 | $ | 11.8 | 22 | % | ||||||
Average Risk Capital (in billions) | $ | 4.1 | $ | 4.3 | $ | 4.3 | $ | 4.3 | $ | 4.5 | 10 | % | ||||||
Return on Risk Capital | 36 | % | 36 | % | 31 | % | 32 | % | 32 | % | ||||||||
Return on Invested Capital | 34 | % | 34 | % | 29 | % | 30 | % | 28 | % | ||||||||
Total Revenues, Net of Interest Expense (by Business): | ||||||||||||||||||
Client | $ | 62 | $ | 83 | $ | 81 | $ | 114 | $ | 91 | 47 | % | ||||||
Proprietary Investment Activities: | ||||||||||||||||||
Private Equity | 752 | 982 | 449 | 380 | 213 | (72 | )% | |||||||||||
Hedge Funds | 30 | (47 | ) | 91 | (5 | ) | 107 | NM | ||||||||||
Other | 22 | 94 | 99 | 243 | 264 | NM | ||||||||||||
Total Proprietary Investment Activities | 804 | 1,029 | 639 | 618 | 584 | (27 | )% | |||||||||||
Total | $ | 866 | $ | 1,112 | $ | 720 | $ | 732 | $ | 675 | (22 | )% | ||||||
Total Revenues, Net of Interest Expense (by Type): | ||||||||||||||||||
Client | $ | 62 | $ | 83 | $ | 81 | $ | 114 | $ | 91 | 47 | % | ||||||
Proprietary Investment Activities: | ||||||||||||||||||
Fees/Dividends/Interest | 81 | 86 | 194 | 148 | 49 | (40 | )% | |||||||||||
Realized & Unrealized Gains (including Public Mark-to-Market) | 706 | 943 | 442 | 491 | 563 | (20 | )% | |||||||||||
Other | 17 | — | 3 | (21 | ) | (28 | ) | NM | ||||||||||
Total Proprietary Investment Activities | 804 | 1,029 | 639 | 618 | 584 | (27 | )% | |||||||||||
Total | $ | 866 | $ | 1,112 | $ | 720 | $ | 732 | $ | 675 | (22 | )% | ||||||
Capital Under Management (in billions): | ||||||||||||||||||
Client | $ | 20.2 | $ | 21.7 | $ | 24.8 | $ | 25.4 | $ | 28.2 | 40 | % | ||||||
Proprietary Investment Activities | 8.8 | 9.6 | 10.7 | 12.2 | 11.1 | 26 | % | |||||||||||
Capital Under Management | $ | 29.0 | $ | 31.3 | $ | 35.5 | $ | 37.6 | $ | 39.3 | 36 | % | ||||||
- (1)
- Includes Citigroup Venture Capital activities and certain other corporate investments.
NM Not meaningful
Reclassified to conform to the current period's presentation.
30
AVERAGE BALANCES AND INTEREST RATES(1)(2)
| Average Volumes | Interest | % Average Rate(3) | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
In millions of dollars | First Quarter 2005 | Fourth Quarter 2005 | First Quarter 2006(4) | First Quarter 2005 | Fourth Quarter 2005 | First Quarter 2006(4) | First Quarter 2005 | Fourth Quarter 2005 | First Quarter 2006(4) | ||||||||||||||||||
Assets: | |||||||||||||||||||||||||||
Cash and Due From Banks | $ | 6,372 | $ | 7,575 | $ | 8,023 | $ | 24 | $ | 41 | $ | 54 | 1.53 | % | 2.15 | % | 2.73 | % | |||||||||
Deposits at Interest with Banks | 28,560 | 32,033 | 30,823 | 336 | 583 | 555 | 4.77 | % | 7.22 | % | 7.30 | % | |||||||||||||||
Fed Funds Sold and Resale Agreements | 218,573 | 240,917 | 241,036 | 1,816 | 3,035 | 3,130 | 3.37 | % | 5.00 | % | 5.27 | % | |||||||||||||||
Brokerage Receivables | 41,242 | 44,949 | 45,592 | 355 | 511 | 578 | 3.49 | % | 4.51 | % | 5.14 | % | |||||||||||||||
Trading Account Assets | 231,676 | 242,544 | 264,165 | 1,855 | 2,122 | 2,566 | 3.25 | % | 3.47 | % | 3.94 | % | |||||||||||||||
Investments(1) | 163,722 | 173,921 | 190,835 | 1,789 | 1,905 | 2,085 | 4.43 | % | 4.35 | % | 4.43 | % | |||||||||||||||
Consumer Loans | 430,780 | 446,699 | 458,398 | 9,486 | 10,155 | 10,343 | 8.93 | % | 9.02 | % | 9.15 | % | |||||||||||||||
Corporate Loans | 115,185 | 126,904 | 139,135 | 1,787 | 2,208 | 2,466 | 6.29 | % | 6.90 | % | 7.19 | % | |||||||||||||||
Total Loans (net of Unearned Income) | 545,965 | 573,603 | 597,533 | 11,273 | 12,363 | 12,809 | 8.37 | % | 8.55 | % | 8.69 | % | |||||||||||||||
Other Interest-Earning Assets | 8,766 | 10,065 | 9,621 | 115 | 139 | 116 | 5.32 | % | 5.48 | % | 4.89 | % | |||||||||||||||
Total Interest-Earning Assets | $ | 1,244,876 | $ | 1,325,607 | $ | 1,387,628 | $ | 17,563 | $ | 20,699 | $ | 21,893 | 5.72 | % | 6.19 | % | 6.40 | % | |||||||||
Liabilities: | |||||||||||||||||||||||||||
Deposits | $ | 496,494 | $ | 523,838 | $ | 544,913 | $ | 2,758 | $ | 3,974 | $ | 4,505 | 2.25 | % | 3.01 | % | 3.35 | % | |||||||||
Fed Funds Purchased and Repurchase Agreements | 231,612 | 262,649 | 271,157 | 2,212 | 3,606 | 3,798 | 3.87 | % | 5.45 | % | 5.68 | % | |||||||||||||||
Brokerage Payables | 50,496 | 62,653 | 69,838 | 89 | 207 | 238 | 0.71 | % | 1.31 | % | 1.38 | % | |||||||||||||||
Trading Account Liabilities | 75,999 | 68,289 | 71,755 | 24 | 40 | 53 | 0.13 | % | 0.23 | % | 0.30 | % | |||||||||||||||
Short-Term Borrowings | 60,414 | 54,783 | 60,084 | 663 | 826 | 1,018 | 4.45 | % | 5.98 | % | 6.87 | % | |||||||||||||||
Long-Term Debt | 208,677 | 214,247 | 225,186 | 1,678 | 2,282 | 2,495 | 3.26 | % | 4.23 | % | 4.49 | % | |||||||||||||||
Total Interest-Bearing Liabilities | 1,123,692 | 1,186,459 | 1,242,933 | 7,424 | 10,935 | 12,107 | 2.68 | % | 3.66 | % | 3.95 | % | |||||||||||||||
Net Interest Revenue as a % of Average Interest-Earning Assets | $ | 1,244,876 | $ | 1,325,607 | $ | 1,387,628 | $ | 10,139 | $ | 9,764 | $ | 9,786 | 3.30 | % | 2.92 | % | 2.86 | % | |||||||||
1Q06 Increase (Decrease) From | - -13 | % | - -2 | % |
- (1)
- The taxable equivalent adjustment is based on the U.S. federal statutory tax rate of 35%.
- (2)
- Citigroup Average Balances and Interest Rates include both domestic and international operations.
- (3)
- Average Rate % is calculated as annualized interest over average volumes.
- (4)
- Preliminary
31
CITIGROUP—RETURN ON CAPITAL(1)
| Average Risk Capital ($M) (2) | Return on Risk Capital | Return on Invested Capital | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| First Quarter 2005 | Fourth Quarter 2005 | First Quarter 2006 | First Quarter 2005 | Fourth Quarter 2005 | First Quarter 2006 | First Quarter 2005 | Fourth Quarter 2005 | First Quarter 2006 | |||||||||||||||
Global Consumer: | ||||||||||||||||||||||||
U.S. Cards | $ | 5,638 | $ | 5,756 | $ | 5,563 | 56 | % | 31 | % | 68 | % | 23 | % | 13 | % | 28 | % | ||||||
U.S. Retail Distribution | 2,940 | 2,982 | 3,459 | 78 | % | 52 | % | 60 | % | 20 | % | 15 | % | 23 | % | |||||||||
U.S. Consumer Lending | 3,291 | 3,270 | 3,732 | 60 | % | 56 | % | 47 | % | 38 | % | 29 | % | 27 | % | |||||||||
U.S. Commercial Business | 1,969 | 1,758 | 2,315 | 52 | % | 27 | % | 22 | % | 37 | % | 17 | % | 11 | % | |||||||||
Total U.S. Consumer | 13,838 | 13,766 | 15,069 | 61 | % | 41 | % | 54 | % | 25 | % | 17 | % | 24 | % | |||||||||
International Cards | 1,595 | 1,967 | 2,073 | 77 | % | 72 | % | 57 | % | 32 | % | 34 | % | 27 | % | |||||||||
International Consumer Finance | 934 | 897 | 1,165 | 60 | % | 77 | % | 58 | % | 16 | % | 21 | % | 19 | % | |||||||||
International Retail Banking | 9,983 | 9,764 | 9,407 | 20 | % | 23 | % | 29 | % | 12 | % | 12 | % | 15 | % | |||||||||
Total International Consumer | 12,512 | 12,628 | 12,645 | 30 | % | 34 | % | 36 | % | 15 | % | 17 | % | 18 | % | |||||||||
Other | — | — | — | — | — | — | — | — | — | |||||||||||||||
Total Global Consumer | 26,350 | 26,394 | 27,714 | 44 | % | 37 | % | 45 | % | 19 | % | 16 | % | 21 | % | |||||||||
Corporate and Investment Banking: | ||||||||||||||||||||||||
Capital Markets and Banking | 19,344 | 20,411 | 19,123 | 30 | % | 28 | % | 34 | % | 23 | % | 21 | % | 26 | % | |||||||||
Transaction Services | 1,435 | 1,234 | 1,470 | 69 | % | 88 | % | 89 | % | 40 | % | 47 | % | 50 | % | |||||||||
Other | — | — | — | — | — | — | — | — | — | |||||||||||||||
Total Corporate and Investment Banking | 20,779 | 21,645 | 20,593 | 33 | % | 38 | % | 38 | % | 24 | % | 28 | % | 28 | % | |||||||||
Global Wealth Management: | ||||||||||||||||||||||||
Smith Barney | 876 | 989 | 1,457 | 91 | % | 83 | % | 47 | % | 63 | % | 42 | % | 24 | % | |||||||||
Private Bank | 1,117 | 1,222 | 1,082 | 44 | % | 29 | % | 45 | % | 42 | % | 26 | % | 42 | % | |||||||||
Total Global Wealth Management | 1,993 | 2,211 | 2,539 | 65 | % | 53 | % | 46 | % | 53 | % | 36 | % | 29 | % | |||||||||
Alternative Investments | 4,089 | 4,317 | 4,547 | 36 | % | 32 | % | 32 | % | 34 | % | 30 | % | 28 | % | |||||||||
Corporate / Other | (1,681 | ) | (1,410 | ) | 145 | NM | NM | NM | NM | NM | NM | |||||||||||||
Total Citigroup—Risk Capital (Continuing Operations)(2)(3) | $ | 51,530 | $ | 53,157 | $ | 55,538 | 40 | % | 37 | % | 41 | % | ||||||||||||
Total Citigroup—Return on Invested Capital (Net Income)(2)(4) | 20 | % | 25 | % | 20 | % |
- (1)
- Risk Capital is defined as the amount of capital needed to cover unexpected economic losses during extreme events. Return on Risk Capital is defined as income divided by Risk Capital. Return on Invested Capital is a similar calculation but includes adjustments for goodwill and intangibles in both the numerator and denominator, similar to those necessary to translate return on tangible equity to return on total equity. Return on Risk Capital and Return on Invested Capital are non-GAAP performance measures. Management believes Return on Risk Capital is useful to make incremental investment decisions and serves as a key metric for organic growth initiatives. Return on Invested Capital is used for multi-year investment decisions and as a long term performance measure.
- (2)
- Average Risk Capital is net of the cross-sector diversification. Average Invested Capital includes the difference between Tangible Equity and Risk Capital, which is also included in the Total Citigroup Return on Invested Capital.
- (3)
- On a Continuing Operations Basis. See Notes 3 and 4 on page 2.
- (4)
- Total Citigroup Return on Invested Capital equals Citigroup Return on Common Equity.
- NM
- Not meaningful
Reclassified to conform to the current period's presentation.
32
CONSUMER LOAN DELINQUENCY AMOUNTS, NET CREDIT LOSSES AND RATIOS
(In millions of dollars, except loan amounts in billions)
| 90 Days Or More Past Due(1) | EOP Loans | Net Credit Losses(1) | Average Loans | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1Q05 | 4Q05 | 1Q06 | 1Q06 | 1Q05 | 4Q05 | 1Q06 | 1Q06 | ||||||||||||||||||
PRODUCT VIEW: | ||||||||||||||||||||||||||
U.S.: | ||||||||||||||||||||||||||
U.S. Cards | $ | 1,094 | $ | 1,161 | $ | 958 | $ | 40.0 | $ | 756 | $ | 692 | $ | 446 | $ | 42.3 | ||||||||||
Ratio | 2.26 | % | 2.56 | % | 2.39 | % | 5.77 | % | 6.38 | % | 4.27 | % | ||||||||||||||
U.S. Retail Distribution | 782 | 818 | 740 | 42.8 | 326 | 418 | 279 | 42.5 | ||||||||||||||||||
Ratio | 1.98 | % | 1.94 | % | 1.73 | % | 3.36 | % | 3.98 | % | 2.66 | % | ||||||||||||||
U.S. Consumer Lending | 2,758 | 2,624 | 2,411 | 193.1 | 181 | 178 | 176 | 187.1 | ||||||||||||||||||
Ratio | 1.72 | % | 1.45 | % | 1.25 | % | 0.47 | % | 0.39 | % | 0.38 | % | ||||||||||||||
U.S. Commercial Business | 185 | 170 | 151 | 34.3 | 12 | 16 | 14 | 33.9 | ||||||||||||||||||
Ratio | 0.60 | % | 0.51 | % | 0.44 | % | 0.17 | % | 0.19 | % | 0.17 | % | ||||||||||||||
International: | ||||||||||||||||||||||||||
International Cards | 354 | 469 | 535 | 24.1 | 160 | 182 | 218 | 24.3 | ||||||||||||||||||
Ratio | 1.64 | % | 1.95 | % | 2.22 | % | 3.02 | % | 3.08 | % | 3.64 | % | ||||||||||||||
International Consumer Finance | 480 | 442 | 437 | 22.8 | 316 | 313 | 319 | 22.4 | ||||||||||||||||||
Ratio | 2.12 | % | 2.03 | % | 1.93 | % | 5.62 | % | 5.62 | % | 5.78 | % | ||||||||||||||
International Retail Banking | 2,013 | 779 | 736 | 60.5 | 179 | 234 | 184 | 61.5 | ||||||||||||||||||
Ratio | 3.26 | % | 1.29 | % | 1.21 | % | 1.17 | % | 1.53 | % | 1.21 | % | ||||||||||||||
Global Wealth Management | 125 | 79 | 12 | 39.5 | (5 | ) | 3 | (4 | ) | 38.4 | ||||||||||||||||
Ratio | 0.32 | % | 0.20 | % | 0.03 | % | (0.05 | %) | 0.04 | % | (0.04 | %) | ||||||||||||||
Other Consumer Loans | — | 47 | 43 | 2.3 | — | (1 | ) | 1 | 2.4 | |||||||||||||||||
On-Balance Sheet Loans(2) | $ | 7,791 | $ | 6,589 | $ | 6,023 | $ | 459.4 | $ | 1,925 | $ | 2,035 | $ | 1,633 | $ | 454.8 | ||||||||||
Ratio | 1.83 | % | 1.46 | % | 1.31 | % | 1.83 | % | 1.82 | % | 1.46 | % | ||||||||||||||
Securitized Receivables (all in U.S. Cards) | 1,296 | 1,314 | 1,403 | 95.9 | 1,162 | 1,591 | 871 | 94.7 | ||||||||||||||||||
Loans Held-for-Sale | 10 | — | — | — | 4 | 15 | 4 | 0.3 | ||||||||||||||||||
Managed Loans(3) | $ | 9,097 | $ | 7,903 | $ | 7,426 | $ | 555.3 | $ | 3,091 | $ | 3,641 | $ | 2,508 | $ | 549.8 | ||||||||||
Ratio | 1.77 | % | 1.45 | % | 1.34 | % | 2.44 | % | 2.69 | % | 1.85 | % | ||||||||||||||
REGIONAL VIEW: | ||||||||||||||||||||||||||
U.S. | $ | 4,867 | $ | 4,872 | $ | 4,312 | $ | 338.1 | $ | 1,277 | $ | 1,306 | $ | 916 | $ | 333.1 | ||||||||||
Ratio | 1.61 | % | 1.47 | % | 1.27 | % | 1.71 | % | 1.61 | % | 1.11 | % | ||||||||||||||
Mexico | 557 | 624 | 541 | 14.7 | 43 | 90 | 106 | 15.0 | ||||||||||||||||||
Ratio | 4.47 | % | 4.21 | % | 3.68 | % | 1.42 | % | 2.47 | % | 2.87 | % | ||||||||||||||
Europe, Middle East and Africa (EMEA) | 1,734 | 499 | 487 | 36.9 | 229 | 274 | 250 | 36.5 | ||||||||||||||||||
Ratio | 4.43 | % | 1.39 | % | 1.32 | % | 2.38 | % | 2.98 | % | 2.77 | % | ||||||||||||||
Japan | 276 | 182 | 170 | 11.5 | 257 | 245 | 223 | 11.6 | ||||||||||||||||||
Ratio | 1.86 | % | 1.56 | % | 1.48 | % | 6.68 | % | 8.41 | % | 7.83 | % | ||||||||||||||
Asia (excluding Japan) | 328 | 376 | 473 | 54.1 | 114 | 109 | 136 | 54.7 | ||||||||||||||||||
Ratio | 0.62 | % | 0.70 | % | 0.87 | % | 0.87 | % | 0.81 | % | 1.01 | % | ||||||||||||||
Latin America | 29 | 36 | 40 | 4.1 | 5 | 11 | 2 | 3.9 | ||||||||||||||||||
Ratio | 0.87 | % | 0.93 | % | 0.99 | % | 0.56 | % | 1.12 | % | 0.21 | % | ||||||||||||||
On-Balance Sheet Loans(2) | $ | 7,791 | $ | 6,589 | $ | 6,023 | $ | 459.4 | $ | 1,925 | $ | 2,035 | $ | 1,633 | $ | 454.8 | ||||||||||
Ratio | 1.83 | % | 1.46 | % | 1.31 | % | 1.83 | % | 1.82 | % | 1.46 | % | ||||||||||||||
Securitized Receivables (all in U.S. Cards) | 1,296 | 1,314 | 1,403 | 95.9 | 1,162 | 1,591 | 871 | 94.7 | ||||||||||||||||||
Loans Held-for-Sale | 10 | — | — | — | 4 | 15 | 4 | 0.3 | ||||||||||||||||||
Managed Loans(3) | $ | 9,097 | $ | 7,903 | $ | 7,426 | $ | 555.3 | $ | 3,091 | $ | 3,641 | $ | 2,508 | $ | 549.8 | ||||||||||
Ratio | 1.77 | % | 1.45 | % | 1.34 | % | 2.44 | % | 2.69 | % | 1.85 | % |
- (1)
- The ratios of 90 days or more past due and net credit losses are calculated based on end-of-period and average loans, respectively, both net of unearned income.
- (2)
- Total Loans and Total Average Loans exclude certain interest and fees on credit cards of approximately $3 billion and $4 billion, respectively, which are included in Consumer Loans on the Consolidated Balance Sheet.
- (3)
- This table presents consumer credit information on a held basis and shows the impact of securitizations to reconcile to a managed basis. Only U.S. Cards from a product view and North America from a regional view are impacted. Managed basis reporting is a non-GAAP measure. Held basis reporting is the related GAAP measure. For a discussion of managed basis reporting see the Cards business on page 9.
Reclassified to conform to the current period's presentation.
33
ALLOWANCE FOR CREDIT LOSSES
TOTAL CITIGROUP
(In millions of dollars)
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Allowance for Credit Losses at Beginning of Period | $ | 11,269 | $ | 10,894 | $ | 10,418 | $ | 10,015 | $ | 9,782 | |||||||||
Gross Credit (Losses) | (2,451 | ) | (2,452 | ) | (3,444 | ) | (2,614 | ) | (2,183 | ) | 11 | % | |||||||
Gross Recoveries | 549 | 674 | 641 | 691 | 583 | 6 | % | ||||||||||||
Net Credit (Losses)/Recoveries (NCL's) | (1,902 | ) | (1,778 | ) | (2,803 | ) | (1,923 | ) | (1,600 | ) | 16 | % | |||||||
NCL'S | 1,902 | 1,778 | 2,803 | 1,923 | 1,600 | (16 | %) | ||||||||||||
Reserve Releases(1) | (20 | ) | (81 | ) | (56 | ) | (242 | ) | (301 | ) | NM | ||||||||
Reserve Builds(1) | — | 154 | 409 | 182 | 150 | — | |||||||||||||
Specific Reserve Releases/Utilizations | (105 | ) | (170 | ) | (720 | ) | (22 | ) | (81 | ) | 23 | % | |||||||
Specific Reserve Builds | 36 | 39 | 76 | 19 | 6 | (83 | %) | ||||||||||||
Build for Purchased Distressed Loan Portfolios | — | — | 13 | 11 | 22 | — | |||||||||||||
Provision for Loan Losses | 1,813 | 1,720 | 2,525 | 1,871 | 1,396 | (23 | )% | ||||||||||||
Other (2) | (286 | ) | (418 | ) | (125 | ) | (181 | ) | (73 | ) | |||||||||
Allowance for Credit Losses at End of Period | $ | 10,894 | $ | 10,418 | $ | 10,015 | $ | 9,782 | $ | 9,505 | |||||||||
Corporate Allowance for Unfunded Lending Commitments (3) | $ | 600 | $ | 700 | $ | 800 | $ | 850 | $ | 900 | |||||||||
Total Allowance for Loans, Leases and Unfunded Lending Commitments | $ | 11,494 | $ | 11,118 | $ | 10,815 | $ | 10,632 | $ | 10,405 | |||||||||
Total Allowance for Loans, Leases and Unfunded Lending Commitments as a Percentage of Total Loans | 2.10 | % | 2.00 | % | 1.91 | % | 1.82 | % | 1.72 | % |
- (1)
- Allowance for Credit Losses represents management's estimate of probable losses inherent in the portofolio. Attribution of the allowance is made for analytical purposes only, and the entire allowance is available to absorb probable credit losses inherent in the portfolio.
- (2)
- Includes all adjustments to the Allowance for Credit Losses, such as changes in the allowance from acquisitions, securitizations, foreign exchange translation, purchase accounting adjustments, etc. The significant items reported on this line for the periods presented include:
- —
- For the 2006 first quarter, reductions to the credit loss reserves of $90 million related to securitizations.
- —
- For the 2005 fourth quarter, reductions to the credit loss reserves of $186 million related to securitizations.
- —
- For the 2005 third quarter, reductions to the credit loss reserves of $137 million related to securitizations.
- —
- The 2005 third quarter includes the reclassification from Other Assets of $23 million of credit loss reserves related to the purchase of distressed loans.
- —
- For the 2005 second quarter, reductions to the credit loss reserves consisted of $132 million related to securitizations and portfolio sales, $110 million of purchase accounting adjustments related to the KorAm acquisition, and a $79 million reclass to a non-credit related reserve.
- —
- For the 2005 first quarter, reductions to the credit loss reserves of $129 million related to securitizations and $90 million from the sale of CitiCapital's transportation portfolio.
- (3)
- Represents additional credit reserves recorded as other liabilities on the Consolidated Balance Sheet.
NM Not meaningful
34
ALLOWANCE FOR CREDIT LOSSES
CONSUMER LOANS(1)
(In millions of dollars)
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Allowance for Credit Losses at Beginning of Period | $ | 8,379 | $ | 8,060 | $ | 7,714 | $ | 7,226 | $ | 6,922 | |||||||||
Gross Credit (Losses) | (2,379 | ) | (2,341 | ) | (3,380 | ) | (2,486 | ) | (2,142 | ) | 10 | % | |||||||
Gross Recoveries | 454 | 544 | 454 | 451 | 509 | 12 | % | ||||||||||||
Net Credit (Losses)/Recoveries (NCL's) | (1,925 | ) | (1,797 | ) | (2,926 | ) | (2,035 | ) | (1,633 | ) | 15 | % | |||||||
NCL'S | 1,925 | 1,797 | 2,926 | 2,035 | 1,633 | (15 | )% | ||||||||||||
Reserve Releases(2) | (20 | ) | (81 | ) | (56 | ) | (242 | ) | (301 | ) | NM | ||||||||
Reserve Builds (2) | — | 154 | 359 | 147 | 150 | — | |||||||||||||
Specific Reserve Releases/Utilizations | (41 | ) | (42 | ) | (665 | ) | (5 | ) | (36 | ) | 12 | % | |||||||
Specific Reserve Builds | 5 | 7 | 20 | 1 | — | (100 | )% | ||||||||||||
Build for Purchased Distressed Loan Portfolios | — | — | — | — | — | — | |||||||||||||
Provision for Loan Losses | 1,869 | 1,835 | 2,584 | 1,936 | 1,446 | (23 | )% | ||||||||||||
Other(3) | (263 | ) | (384 | ) | (146 | ) | (205 | ) | (88 | ) | |||||||||
Allowance for Credit Losses at End of Period | $ | 8,060 | $ | 7,714 | $ | 7,226 | $ | 6,922 | $ | 6,647 | |||||||||
Net Consumer Credit (Losses) as a Percentage of Average Consumer Loans | 1.83 | % | 1.68 | % | 2.68 | % | 1.82 | % | 1.46 | % | |||||||||
Consumer Allowance for Credit Losses As a Percentage of Total Consumer Loans | 1.87 | % | 1.78 | % | 1.64 | % | 1.52 | % | 1.44 | % |
- (1)
- Includes loans made to Global Wealth Management clients.
- (2)
- Allowance for Credit Losses represents management's estimate of probable losses inherent in the portofolio. Attribution of the allowance is made for analytical purposes only, and the entire allowance is available to absorb probable credit losses inherent in the portfolio.
- (3)
- Includes all adjustments to the Allowance for Credit Losses, such as changes in the allowance from acquisitions, securitizations, foreign exchange translation, purchase accounting adjustments, etc. The significant items reported on this line for the periods presented include:
- —
- For the 2006 first quarter, reductions to the credit loss reserves of $90 million related to securitizations.
- —
- For the 2005 fourth quarter, reductions to the credit loss reserves of $186 million related to securitizations.
- —
- For the 2005 third quarter, reductions to the credit loss reserves of $137 million related to securitizations.
- —
- For the 2005 second quarter, reductions to the credit loss reserves consisted of $132 million related to securitizations and portfolio sales, $110 million of purchase accounting adjustments related to the KorAm acquisition, and a $79 million reclass to a non-credit related reserve.
- —
- For the 2005 first quarter, reductions to the credit loss reserves of $129 million related to securitizations and $90 million from the sale of CitiCapital's transportation portfolio.
NM Not meaningful
35
ALLOWANCE FOR CREDIT LOSSES
CORPORATE LOANS(1)
(In millions of dollars)
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Allowance for Credit Losses at Beginning of Period | $ | 2,890 | $ | 2,834 | $ | 2,704 | $ | 2,789 | $ | 2,860 | |||||||||
Gross Credit (Losses) | (72 | ) | (111 | ) | (64 | ) | (128 | ) | (41 | ) | 43 | % | |||||||
Gross Recoveries | 95 | 130 | 187 | 240 | 74 | (22 | %) | ||||||||||||
Net Credit (Losses)/Recoveries (NCL's) | 23 | 19 | 123 | 112 | 33 | 43 | % | ||||||||||||
NCL'S | (23 | ) | (19 | ) | (123 | ) | (112 | ) | (33 | ) | (43 | %) | |||||||
Reserve Releases (2) | — | — | — | — | — | — | |||||||||||||
Reserve Builds (2) | — | — | 50 | 35 | — | — | |||||||||||||
Specific Reserve Releases/Utilizations | (64 | ) | (128 | ) | (55 | ) | (17 | ) | (45 | ) | 30 | % | |||||||
Specific Reserve Builds | 31 | 32 | 56 | 18 | 6 | (81 | %) | ||||||||||||
Build for Purchased Distressed Loan Portfolios | — | — | 13 | 11 | 22 | — | |||||||||||||
Provision for Loan Losses | (56 | ) | (115 | ) | (59 | ) | (65 | ) | (50 | ) | 11 | % | |||||||
Other(3) | (23 | ) | (34 | ) | 21 | 24 | 15 | ||||||||||||
Allowance for Credit Losses at End of Period | $ | 2,834 | $ | 2,704 | $ | 2,789 | $ | 2,860 | $ | 2,858 | |||||||||
Net Corporate Credit (Losses) as a Percentage of Average Corporate Loans | NM | NM | NM | NM | NM | ||||||||||||||
Corporate Allowance for Credit Losses As a Percentage of Total Corporate Loans | 2.41 | % | 2.18 | % | 2.21 | % | 2.22 | % | 2.00 | % | |||||||||
Corporate Allowance for Unfunded Lending Commitments (4) | $ | 600 | $ | 700 | $ | 800 | $ | 850 | $ | 900 | |||||||||
Total Corporate Allowance for Loans, Leases and Unfunded Lending Commitments | $ | 3,434 | $ | 3,404 | $ | 3,589 | $ | 3,710 | $ | 3,758 | |||||||||
Total Allowance for Loans, Leases and Unfunded Lending Commitments as a Percentage of Total Corporate Loans | 2.92 | % | 2.75 | % | 2.84 | % | 2.88 | % | 2.62 | % |
- (1)
- Includes Loans related to the Alternative Investments and Corporate/Other segments.
- (2)
- Allowance for Credit Losses represents management's estimate of probable losses inherent in the portofolio. Attribution of the allowance is made for analytical purposes only, and the entire allowance is available to absorb probable credit losses inherent in the portfolio.
- (3)
- Includes all adjustments to the Allowance for Credit Losses, such as changes in the allowance from acquisitions, securitizations, foreign exchange translation, purchase accounting adjustments, etc. The significant items reported on this line for the periods presented include:
- —
- The 2005 third quarter includes the reclassification from Other Assets of $23 million of credit loss reserves related to the purchase of distressed loans.
- (4)
- Represents additional credit reserves recorded as other liabilities on the Consolidated Balance Sheet.
NM Not meaningful
36
CITIGROUP—COMPONENTS OF PROVISION FOR LOAN LOSSES
(In millions of dollars)
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | 1Q 2006 vs. 1Q 2005 Increase/ (Decrease) | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
U.S. Cards | ||||||||||||||||||||
Net Credit Losses | $ | 756 | $ | 640 | $ | 649 | $ | 692 | $ | 446 | (41 | %) | ||||||||
Credit Reserve Build/(Release) | — | — | 30 | (200 | ) | (72 | ) | — | ||||||||||||
U.S. Retail Distribution | ||||||||||||||||||||
Net Credit Losses | 326 | 346 | 314 | 418 | 279 | (14 | %) | |||||||||||||
Credit Reserve Build/(Release) | (17 | ) | — | 275 | 44 | (55 | ) | NM | ||||||||||||
U.S. Consumer Lending | ||||||||||||||||||||
Net Credit Losses | 181 | 146 | 168 | 178 | 176 | (3 | )% | |||||||||||||
Credit Reserve Build/(Release) | (1 | ) | 1 | (56 | ) | (8 | ) | (31 | ) | NM | ||||||||||
U.S. Commercial Business | ||||||||||||||||||||
Net Credit Losses | 12 | 12 | 8 | 16 | 14 | 17 | % | |||||||||||||
Credit Reserve Build/(Release) | (12 | ) | (6 | ) | 13 | (34 | ) | (38 | ) | NM | ||||||||||
International Cards | ||||||||||||||||||||
Net Credit Losses | 160 | 157 | 168 | 182 | 218 | 36 | % | |||||||||||||
Credit Reserve Build/(Release) | (5 | ) | 18 | 24 | 35 | 94 | NM | |||||||||||||
International Consumer Finance | ||||||||||||||||||||
Net Credit Losses | 316 | 321 | 334 | 313 | 319 | 1 | % | |||||||||||||
Credit Reserve Build/(Release) | — | 1 | (10 | ) | — | (16 | ) | — | ||||||||||||
International Retail Banking | ||||||||||||||||||||
Net Credit Losses | 179 | 181 | 1,288 | 234 | 184 | 3 | % | |||||||||||||
Credit Reserve Build/(Release) | (9 | ) | 19 | (649 | ) | 51 | (77 | ) | NM | |||||||||||
Global Wealth Management: | ||||||||||||||||||||
Smith Barney | ||||||||||||||||||||
Net Credit Losses | — | — | — | — | — | — | ||||||||||||||
Credit Reserve Build/(Release) | 4 | 7 | 1 | 1 | — | |||||||||||||||
Private Bank | ||||||||||||||||||||
Net Credit Losses | (5 | ) | (5 | ) | (1 | ) | 3 | (4 | ) | 20 | % | |||||||||
Credit Reserve Build/(Release) | (11 | ) | 1 | 24 | 11 | 8 | NM | |||||||||||||
Other | (1 | ) | (1 | ) | (2 | ) | — | — | 100 | % | ||||||||||
Consumer Provision for Loan Losses | 1,869 | 1,835 | 2,584 | 1,936 | 1,446 | (23 | %) | |||||||||||||
Corporate and Investment Banking: | ||||||||||||||||||||
Capital Markets and Banking | ||||||||||||||||||||
Net Credit Losses | (14 | ) | (16 | ) | (118 | ) | (117 | ) | (34 | ) | NM | |||||||||
Credit Reserve Build/(Release) | (32 | ) | (100 | ) | 63 | 35 | (17 | ) | 47 | % | ||||||||||
Transaction Services | ||||||||||||||||||||
Net Credit Losses | (12 | ) | 1 | (3 | ) | 5 | 1 | NM | ||||||||||||
Credit Reserve Build/(Release) | (1 | ) | 1 | 4 | 12 | — | 100 | % | ||||||||||||
Other | 3 | — | (3 | ) | — | — | (100 | %) | ||||||||||||
Alternative Investments | ||||||||||||||||||||
Net Credit Losses | — | — | (2 | ) | — | — | ||||||||||||||
Corporate/Other | — | |||||||||||||||||||
Net Credit Losses | — | (1 | ) | — | — | — | — | |||||||||||||
Corporate Provision for Loan Losses | (56 | ) | (115 | ) | (59 | ) | (65 | ) | (50 | ) | 11 | % | ||||||||
Total Provision for Loan Losses | $ | 1,813 | $ | 1,720 | $ | 2,525 | $ | 1,871 | $ | 1,396 | (23 | %) |
NM Not meaningful
Reclassified to conform to the current period's presentation.
37
NON-PERFORMING ASSETS
(In millions of dollars)
| 1Q 2005 | 2Q 2005 | 3Q 2005 | 4Q 2005 | 1Q 2006 | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
CASH-BASIS AND RENEGOTIATED LOANS | ||||||||||||||||||
Corporate Cash-Basis Loans | ||||||||||||||||||
Collateral Dependent (at lower of cost or collateral value) | $ | 8 | $ | 8 | $ | 6 | $ | 6 | $ | — | ||||||||
Other | 1,724 | 1,588 | 1,204 | 998 | 821 | |||||||||||||
Total Corporate Cash-Basis Loans (1) | $ | 1,732 | $ | 1,596 | $ | 1,210 | $ | 1,004 | $ | 821 | ||||||||
Corporate Cash-Basis Loans | ||||||||||||||||||
JENA(2) | $ | 510 | $ | 406 | $ | 276 | $ | 166 | $ | 151 | ||||||||
Other International(3) | 1,222 | 1,190 | 934 | 838 | 670 | |||||||||||||
Total Corporate Cash-Basis Loans (1) | $ | 1,732 | $ | 1,596 | $ | 1,210 | $ | 1,004 | $ | 821 | ||||||||
Corporate Cash-Basis Loans as a % of Total Corporate Loans(1) | 1.47 | % | 1.29 | % | 0.96 | % | 0.78 | % | 0.57 | % | ||||||||
Total Consumer Cash-Basis Loans | $ | 5,070 | $ | 4,699 | $ | 3,821 | $ | 4,020 | $ | 3,752 | ||||||||
Renegotiated Loans (includes Corporate and Commercial Business Loans) | $ | 36 | $ | 31 | $ | 29 | $ | 32 | $ | 30 | ||||||||
OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS | ||||||||||||||||||
Consumer | $ | 286 | $ | 248 | $ | 283 | $ | 279 | $ | 322 | ||||||||
Corporate and Investment Banking | 127 | 133 | 153 | 150 | 144 | |||||||||||||
TOTAL OTHER REAL ESTATE OWNED (4) | $ | 413 | $ | 381 | $ | 436 | $ | 429 | $ | 466 | ||||||||
OTHER REPOSSESSED ASSETS(5) | $ | 74 | $ | 49 | $ | 57 | $ | 62 | $ | 52 | ||||||||
- (1)
- Excludes purchased distressed loans that are accreting interest. The carrying value of these loans was: $1,295 million at March 31, 2005, $1,148 million at June 30, 2005, $1,064 million at September 30, 2005, $1,120 million at December 31, 2005 and $1,206 million at March 31, 2006.
- (2)
- JENA includes Japan, Western Europe and North America.
- (3)
- Other International includes Asia (excluding Japan), Mexico, Latin America, Central and Eastern Europe, the Middle East and Africa.
- (4)
- Represents repossessed real estate, carried at lower of cost or fair value, less costs to sell.
- (5)
- Primarily transportation equipment, carried at lower of cost or fair value, less costs to sell.
38