CITIGROUP INC. AND SUBSIDIARIES
CITIGROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (USD $) | |||||||||||||||||||
In Millions, except Per Share data | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 | |||||||||||||||||
Revenues | |||||||||||||||||||
Interest revenue | $20,852 | $20,583 | |||||||||||||||||
Interest expense | 6,291 | 7,657 | |||||||||||||||||
Net interest revenue | 14,561 | 12,926 | |||||||||||||||||
Commissions and fees | 3,760 | 4,168 | |||||||||||||||||
Principal transactions | 4,051 | 3,670 | |||||||||||||||||
Administration and other fiduciary fees | 1,022 | 1,606 | |||||||||||||||||
Realized gains (losses) on sales of investments | 538 | 757 | |||||||||||||||||
Other than temporary impairment losses on investments | |||||||||||||||||||
Gross impairment losses | (550) | (1,379) | |||||||||||||||||
Less: Impairments recognized in OCI | 43 | 631 | |||||||||||||||||
Net impairment losses recognized in earnings | (507) | (748) | |||||||||||||||||
Insurance premiums | 748 | 755 | |||||||||||||||||
Other revenue | 1,248 | 1,387 | |||||||||||||||||
Total non-interest revenues | 10,860 | 11,595 | |||||||||||||||||
Total revenues, net of interest expense | 25,421 | 24,521 | |||||||||||||||||
Provisions for credit losses and for benefits and claims | |||||||||||||||||||
Provision for loan losses | 8,366 | 9,915 | |||||||||||||||||
Policyholder benefits and claims | 287 | 332 | |||||||||||||||||
Provision for unfunded lending commitments | (35) | 60 | |||||||||||||||||
Total provisions for credit losses and for benefits and claims | 8,618 | 10,307 | |||||||||||||||||
Operating expenses | |||||||||||||||||||
Compensation and benefits | 6,162 | 6,235 | |||||||||||||||||
Premises and equipment | 965 | 1,083 | |||||||||||||||||
Technology/communication | 1,064 | 1,142 | |||||||||||||||||
Advertising and marketing | 302 | 334 | |||||||||||||||||
Restructuring | (3) | (13) | |||||||||||||||||
Other operating | 3,028 | 2,904 | |||||||||||||||||
Total operating expenses | 11,518 | 11,685 | |||||||||||||||||
Income from continuing operations before income taxes | 5,285 | 2,529 | |||||||||||||||||
Provision for income taxes | 1,036 | 835 | |||||||||||||||||
Income from continuing operations | 4,249 | 1,694 | |||||||||||||||||
Discontinued operations | |||||||||||||||||||
Income (loss) from discontinued operations | (5) | (152) | |||||||||||||||||
Gain on sale | 94 | (12) | |||||||||||||||||
Provision (benefit) for income taxes | (122) | (47) | |||||||||||||||||
Income (loss) from discontinued operations, net of taxes | 211 | (117) | |||||||||||||||||
Net income (loss) before attribution of noncontrolling interests | 4,460 | 1,577 | |||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 32 | (16) | |||||||||||||||||
Citigroup's net income | $4,428 | $1,593 | |||||||||||||||||
Basic earnings per share (1) (2) | |||||||||||||||||||
Income (loss) from continuing operations (in dollars per share) | 0.15 | [1],[2] | -0.16 | [1],[2] | |||||||||||||||
Income (loss) from discontinued operations, net of taxes (in dollars per share) | 0.01 | [1],[2] | -0.02 | [1],[2] | |||||||||||||||
Net income (loss) (in dollars per share) | 0.15 | [1],[2] | -0.18 | [1],[2] | |||||||||||||||
Weighted average common shares outstanding (in shares) | 28444.3 | 5,385 | |||||||||||||||||
Diluted earnings per share (1) | |||||||||||||||||||
Income (loss) from continuing operations (in dollars per share) | 0.14 | [2] | -0.16 | [2] | |||||||||||||||
Income (loss) from discontinued operations, net of taxes (in dollars per share) | 0.01 | [2] | -0.02 | [2] | |||||||||||||||
Net income (loss) (in dollars per share) | 0.15 | [2] | -0.18 | [2] | |||||||||||||||
Adjusted weighted average common shares outstanding (in shares) | 29333.5 | 5953.3 | |||||||||||||||||
[1]Due to rounding, earnings per share on continuing operations and discontinued operations may not sum to earnings per share on net income. | |||||||||||||||||||
[2]The Diluted EPS calculation for 2009 utilizes Basic shares and Income available to common shareholders (Basic) due to the negative Income available to common shareholders. Using Diluted shares and Income available to common shareholders (Diluted) would result in anti-dilution. |
1_CITIGROUP INC. AND SUBSIDIARI
CITIGROUP INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (USD $) | ||
In Millions | Mar. 31, 2010
| Dec. 31, 2009
|
Assets | ||
Cash and due from banks (including segregated cash and other deposits) | $25,678 | $25,472 |
Deposits with banks | 163,525 | 167,414 |
Federal funds sold and securities borrowed or purchased under agreements to resell (including $96,596 and $87,837 as of March 31, 2010 and December 31, 2009, respectively, at fair value) | 234,348 | 222,022 |
Brokerage receivables | 34,001 | 33,634 |
Trading account assets | 345,783 | 342,773 |
Investments | 316,733 | 306,119 |
Loans, net of unearned income | ||
Consumer | 531,469 | 424,057 |
Corporate | 190,335 | 167,447 |
Loans, net of unearned income | 721,804 | 591,504 |
Allowance for loan losses | (48,746) | (36,033) |
Total loans, net | 673,058 | 555,471 |
Goodwill | 25,662 | 25,392 |
Intangible assets (other than MSRs) | 8,277 | 8,714 |
Mortgage servicing rights (MSRs) | 6,439 | 6,530 |
Other assets | 168,709 | 163,105 |
Total assets | 2,002,213 | 1,856,646 |
Liabilities | ||
Non-interest-bearing deposits in U.S. offices | 66,796 | 71,325 |
Interest-bearing deposits in U.S. offices (including $736 and $700 at March 31, 2010 and December 31, 2009, respectively, at fair value) | 230,919 | 232,093 |
Non-interest-bearing deposits in offices outside the U.S. | 45,471 | 44,904 |
Interest-bearing deposits in offices outside the U.S. (including $804 and $845 at March 31, 2010 and December 31, 2009, respectively, at fair value) | 484,728 | 487,581 |
Total deposits | 827,914 | 835,903 |
Federal funds purchased and securities loaned or sold under agreements to repurchase (including $136,526 and $104,030 as of March 31, 2010 and December 31, 2009, respectively, at fair value) | 207,911 | 154,281 |
Brokerage payables | 55,041 | 60,846 |
Trading account liabilities | 142,748 | 137,512 |
Short-term borrowings | 96,694 | 68,879 |
Long-term debt | 439,274 | 364,019 |
Other liabilities | 78,852 | 80,233 |
Total liabilities | 1,848,434 | 1,701,673 |
Stockholders' equity | ||
Preferred stock ($1.00 par value; authorized shares: 30 million), issued shares: 12,038 at March 31, 2010, at aggregate liquidation value | 312 | 312 |
Common stock ($0.01 par value; authorized shares: 60 billion), issued shares: 28,685,038,572 at March 31, 2010 and 28,626,100,389 at December 31, 2009 | 287 | 286 |
Additional paid-in capital | 96,427 | 98,142 |
Retained earnings | 73,432 | 77,440 |
Treasury stock, at cost: March 31, 2010-64,790,181 shares and December 31, 2009-142,833,099 shares | (1,178) | (4,543) |
Accumulated other comprehensive income (loss) | (17,859) | (18,937) |
Total Citigroup stockholders' equity | 151,421 | 152,700 |
Noncontrolling interest | 2,358 | 2,273 |
Total equity | 153,779 | 154,973 |
Total liabilities and equity | 2,002,213 | 1,856,646 |
Consolidated VIEs | ||
Assets | ||
Cash and due from banks (including segregated cash and other deposits) | 2,776 | |
Trading account assets | 10,738 | |
Investments | 10,859 | |
Loans, net of unearned income | ||
Consumer | 157,834 | |
Corporate | 26,592 | |
Loans, net of unearned income | 184,426 | |
Allowance for loan losses | (14,520) | |
Total loans, net | 169,906 | |
Other assets | 2,588 | |
Total assets | 196,867 | |
Liabilities | ||
Short-term borrowings | 39,996 | |
Long-term debt | 113,604 | |
Other liabilities | 2,531 | |
Total liabilities | $156,131 |
2_CITIGROUP INC. AND SUBSIDIARI
CITIGROUP INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | ||
In Millions, except Share data | Mar. 31, 2010
| Dec. 31, 2009
|
CONSOLIDATED BALANCE SHEET | ||
Federal funds sold and securities borrowed or purchased under agreements to resell, at fair value | $96,596 | $87,837 |
Trading account assets, pledged to creditors | 137,078 | 111,219 |
Investments, pledged to creditors | 17,506 | 15,154 |
Investments, at fair value | 262,138 | 246,429 |
Consumer loans, at fair value | 2,911 | 34 |
Corporate loans, at fair value | 2,457 | 1,405 |
Other assets, at fair value | 13,248 | 12,664 |
Interest-bearing deposits in U.S. offices, at fair value | 736 | 700 |
Interest-bearing deposits in offices outside the U.S., at fair value | 804 | 845 |
Federal funds purchased and securities loaned or sold under agreements to repurchase, at fair value | 136,526 | 104,030 |
Short-term borrowings, at fair value | 1,225 | 639 |
Long-term debt, at fair value | 28,112 | 25,942 |
Other liabilities, at fair value | 11,481 | 11,542 |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, authorized shares (in shares) | 30,000,000 | 30,000,000 |
Preferred stock, issued shares (in shares) | 12,038 | |
Common stock, par value (in dollars per share) | 0.01 | 0.01 |
Common stock, authorized shares (in shares) | 60,000,000,000 | 60,000,000,000 |
Common stock, issued shares (in shares) | 28,685,038,572 | 28,626,100,389 |
Treasury stock, shares (in shares) | 64,790,181 | 142,833,099 |
Consolidated VIEs | ||
CONSOLIDATED BALANCE SHEET | ||
Consumer loans, at fair value | 2,880 | |
Corporate loans, at fair value | 1,266 | |
Long-term debt, at fair value | $7,005 |
3_CITIGROUP INC. AND SUBSIDIARI
CITIGROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | |||||||||||||||||||
In Millions | Citigroup stockholders' equity
| Preferred stock at aggregate liquidation value
| Citigroup common stockholders' equity
| Common stock and additional paid-in capital
| Retained earnings
| Treasury stock, at cost
| Accumulated other comprehensive income (loss)
| Noncontrolling interest
| Comprehensive income (loss)
| Total
| |||||||||
Balance as Previously Reported at Dec. 31, 2008 | $86,521 | ($25,195) | |||||||||||||||||
Balance at Dec. 31, 2008 | 70,664 | 19,222 | 86,934 | (9,582) | (25,608) | 2,392 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Adjustment to opening balance, net of taxes | 413 | [1],[2] | (413) | [2] | |||||||||||||||
Net income (loss) before attribution of noncontrolling interests | 1,577 | 1,577 | |||||||||||||||||
Net income | 1,593 | 1,593 | |||||||||||||||||
Issuance of new preferred stock | 3,582 | ||||||||||||||||||
Employee benefit plans | (4,013) | ||||||||||||||||||
Common dividends | (63) | [3] | |||||||||||||||||
Preferred dividends | (1,011) | ||||||||||||||||||
Preferred stock Series H discount accretion | (53) | ||||||||||||||||||
Reset of convertible preferred stock conversion price | 1,285 | (1,285) | |||||||||||||||||
Issuance of shares pursuant to employee benefit plans | 3,579 | ||||||||||||||||||
Treasury stock acquired | (1) | [4] | |||||||||||||||||
Issuance of TARP-related warrants | 88 | ||||||||||||||||||
Transactions between noncontrolling interest shareholders and the related consolidating subsidiary | (120) | ||||||||||||||||||
Transactions between Citigroup and the noncontrolling-interest shareholders | (216) | ||||||||||||||||||
Net income attributable to noncontrolling-interest shareholders | (16) | 16 | |||||||||||||||||
Dividends paid to noncontrolling-interest shareholders | (6) | ||||||||||||||||||
Net change in unrealized gains and losses on investment securities, net of taxes | 20 | (3) | |||||||||||||||||
Net change in cash flow hedges, net of taxes | 1,483 | ||||||||||||||||||
Net change in foreign currency translation adjustment, net of taxes | (2,974) | (86) | |||||||||||||||||
Pension liability adjustment, net of taxes | 66 | ||||||||||||||||||
All other | 8 | 48 | |||||||||||||||||
Net change in Accumulated other comprehensive income (loss) | (1,405) | (1,494) | |||||||||||||||||
Total comprehensive income (loss) | 83 | ||||||||||||||||||
Comprehensive income (loss) attributable to the noncontrolling interests | (105) | ||||||||||||||||||
Comprehensive income (loss) attributable to Citigroup | 188 | ||||||||||||||||||
Net change in noncontrolling interests | (399) | ||||||||||||||||||
Balance as Previously Reported at Mar. 31, 2009 | |||||||||||||||||||
Balance at Mar. 31, 2009 | 143,934 | 74,246 | 69,688 | 16,582 | 86,115 | (5,996) | (27,013) | 1,993 | 145,927 | ||||||||||
Balance as Previously Reported at Dec. 31, 2009 | 77,440 | (18,937) | |||||||||||||||||
Balance at Dec. 31, 2009 | 312 | 98,428 | 68,998 | (4,543) | (18,937) | 2,273 | 154,973 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Adjustment to opening balance, net of taxes | (8,442) | [1],[2] | |||||||||||||||||
Net income (loss) before attribution of noncontrolling interests | 0 | 4,460 | 4,460 | ||||||||||||||||
Net income | 4,428 | 4,428 | |||||||||||||||||
Employee benefit plans | (3,506) | ||||||||||||||||||
Common dividends | 6 | [3] | |||||||||||||||||
Issuance of shares pursuant to employee benefit plans | 3,364 | ||||||||||||||||||
Treasury stock acquired | (1) | [4] | |||||||||||||||||
ADIA Upper Decs Equity Units Purchase Contract | 1,875 | ||||||||||||||||||
Origination of a noncontrolling interest | (10) | ||||||||||||||||||
Transactions between noncontrolling interest shareholders and the related consolidating subsidiary | (22) | ||||||||||||||||||
Net income attributable to noncontrolling-interest shareholders | 32 | (32) | |||||||||||||||||
Dividends paid to noncontrolling-interest shareholders | (54) | ||||||||||||||||||
Net change in unrealized gains and losses on investment securities, net of taxes | 1,182 | 12 | |||||||||||||||||
Net change in cash flow hedges, net of taxes | 223 | ||||||||||||||||||
Net change in foreign currency translation adjustment, net of taxes | (279) | (5) | |||||||||||||||||
Pension liability adjustment, net of taxes | (48) | ||||||||||||||||||
All other | (83) | 2 | 132 | ||||||||||||||||
Net change in Accumulated other comprehensive income (loss) | 1,078 | 1,085 | |||||||||||||||||
Total comprehensive income (loss) | 5,545 | ||||||||||||||||||
Comprehensive income (loss) attributable to the noncontrolling interests | 39 | ||||||||||||||||||
Comprehensive income (loss) attributable to Citigroup | 5,506 | ||||||||||||||||||
Net change in noncontrolling interests | 85 | ||||||||||||||||||
Balance as Previously Reported at Mar. 31, 2010 | |||||||||||||||||||
Balance at Mar. 31, 2010 | $151,421 | $312 | $151,109 | $96,714 | $73,432 | ($1,178) | ($17,859) | $2,358 | $153,779 | ||||||||||
[1]The adjustment to the opening balance for Retained earnings in 2010 represents the cumulative effect of initially adopting ASC 810, Consolidation (formerly FASB Interpretation No. 46(R), Consolidation of Variable Interest Entities). | |||||||||||||||||||
[2]The adjustment to the opening balances for Retained earnings and Accumulated other comprehensive income (loss) in 2009 represents the cumulative effect of initially adopting ASC 320-10-35-34, Investments-Debt and Equity securities: Recognition of an Other-Than-Temporary Impairment (formerly FSP FAS 115-2 and FAS 124-2). | |||||||||||||||||||
[3]Common dividends in 2010 are related to forfeitures of previously issued but unvested employee stock awards. Common dividends declared were as follows: $0.01 per share in the first quarter of 2009. | |||||||||||||||||||
[4]All open market repurchases were transacted under an existing authorized share repurchase plan and relate to customer fails/errors. |
4_CITIGROUP INC. AND SUBSIDIARI
CITIGROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical - Per Share) (USD $) | |
3 Months Ended
Mar. 31, 2009 | |
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY | |
Common dividends declared per share (in dollars per share) | 0.01 |
5_CITIGROUP INC. AND SUBSIDIARI
CITIGROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical - Shares) | ||
Share data in Thousands | Mar. 31, 2010
| Dec. 31, 2009
|
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY | ||
Common stock, shares outstanding (in shares) | 28,620,248 | 28,483,267 |
6_CITIGROUP INC. AND SUBSIDIARI
CITIGROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | ||
In Millions | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
Cash flows from operating activities of continuing operations | ||
Net income before attribution of noncontrolling interests | $4,460 | $1,577 |
Net income (loss) attributable to noncontrolling interests | 32 | (16) |
Citigroup's net income | 4,428 | 1,593 |
Income (loss) from discontinued operations, net of taxes | 147 | (105) |
Gain (loss) on sale, net of taxes | 64 | (12) |
Income from continuing operations-excluding noncontrolling interests | 4,217 | 1,710 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities of continuing operations | ||
Amortization of deferred policy acquisition costs and present value of future profits | 102 | 101 |
Additions to deferred policy acquisition costs | 1,994 | (90) |
Depreciation and amortization | 623 | 13 |
Provision for credit losses | 8,331 | 9,975 |
Change in trading account assets | (13,110) | 42,413 |
Change in trading account liabilities | 5,236 | (36,652) |
Change in federal funds sold and securities borrowed or purchased under agreements to resell | (12,326) | 4,530 |
Change in federal funds purchased and securities loaned or sold under agreements to repurchase | 53,630 | (20,490) |
Change in brokerage receivables net of brokerage payables | (6,172) | (11,017) |
Net losses (gains) from sales of investments | (538) | (757) |
Change in loans held-for-sale | (1,444) | (889) |
Other, net | (5,125) | 2,772 |
Total adjustments | 31,201 | (10,091) |
Net cash provided by (used in) operating activities of continuing operations | 35,418 | (8,381) |
Cash flows from investing activities of continuing operations | ||
Change in deposits at interest with banks | 3,889 | 10,828 |
Change in loans | 25,536 | (31,999) |
Proceeds from sales and securitizations of loans | 1,252 | 60,329 |
Purchases of investments | (95,504) | (58,136) |
Proceeds from sales of investments | 32,962 | 27,774 |
Proceeds from maturities of investments | 45,904 | 32,928 |
Capital expenditures on premises and equipment | (278) | (282) |
Proceeds from sales of premises and equipment, subsidiaries and affiliates, and repossessed assets | 637 | 1,032 |
Net cash provided by investing activities of continuing operations | 14,398 | 42,474 |
Cash flows from financing activities of continuing operations | ||
Dividends paid | (1,074) | |
Issuance of ADIA Upper Decs equity units purchase contract | 1,875 | |
Treasury stock acquired | (1) | (1) |
Stock tendered for payment of withholding taxes | (126) | (88) |
Issuance of long-term debt | 7,331 | 65,398 |
Payments and redemptions of long-term debt | (16,682) | (74,055) |
Change in deposits | (7,989) | (11,489) |
Change in short-term borrowings | (33,885) | (10,302) |
Net cash used in financing activities of continuing operations | (49,477) | (31,611) |
Effect of exchange rate changes on cash and cash equivalents | (185) | (756) |
Net cash from discontinued operations | 52 | 84 |
Change in cash and due from banks | 206 | 1,810 |
Cash and due from banks at beginning of period | 25,472 | 29,253 |
Cash and due from banks at end of period | 25,678 | 31,063 |
Supplemental disclosure of cash flow information for continuing operations | ||
Cash paid during the period for income taxes | 1,802 | 1,111 |
Cash paid during the period for interest | 5,711 | 8,362 |
Non-cash investing activities | ||
Transfers to repossessed assets | $669 | $643 |
CITIBANK CONSOLIDATED BALANCE S
CITIBANK CONSOLIDATED BALANCE SHEET (USD $) | |||||||||||||||||||
In Millions | Mar. 31, 2010
| Dec. 31, 2009
| |||||||||||||||||
Assets | |||||||||||||||||||
Cash and due from banks | $25,678 | $25,472 | |||||||||||||||||
Deposits with banks | 163,525 | 167,414 | |||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | 234,348 | 222,022 | |||||||||||||||||
Trading account assets | 345,783 | 342,773 | |||||||||||||||||
Investments | 316,733 | 306,119 | |||||||||||||||||
Loans, net of unearned income | |||||||||||||||||||
Consumer | 531,469 | 424,057 | |||||||||||||||||
Corporate | 190,335 | 167,447 | |||||||||||||||||
Loans, net of unearned income | 721,804 | 591,504 | |||||||||||||||||
Allowance for loan losses | (48,746) | (36,033) | |||||||||||||||||
Total loans, net | 673,058 | 555,471 | |||||||||||||||||
Goodwill | 25,662 | 25,392 | |||||||||||||||||
Other assets | 168,709 | 163,105 | |||||||||||||||||
Total assets | 2,002,213 | 1,856,646 | |||||||||||||||||
Liabilities | |||||||||||||||||||
Non-interest-bearing deposits in U.S. offices | 66,796 | 71,325 | |||||||||||||||||
Interest-bearing deposits in U.S. offices | 230,919 | 232,093 | |||||||||||||||||
Non-interest-bearing deposits in offices outside the U.S. | 45,471 | 44,904 | |||||||||||||||||
Interest-bearing deposits in offices outside the U.S. | 484,728 | 487,581 | |||||||||||||||||
Total deposits | 827,914 | 835,903 | |||||||||||||||||
Trading account liabilities | 142,748 | 137,512 | |||||||||||||||||
Short-term borrowings | 96,694 | 68,879 | |||||||||||||||||
Long-term debt and subordinated notes | 439,274 | 364,019 | |||||||||||||||||
Other liabilities | 78,852 | 80,233 | |||||||||||||||||
Total liabilities | 1,848,434 | 1,701,673 | |||||||||||||||||
Stockholder's equity | |||||||||||||||||||
Capital stock ($20 par value) outstanding shares: 37,534,553 in each period | 287 | 286 | |||||||||||||||||
Surplus | 96,427 | 98,142 | |||||||||||||||||
Retained earnings | 73,432 | 77,440 | |||||||||||||||||
Accumulated other comprehensive income (loss) | (17,859) | (18,937) | |||||||||||||||||
Total stockholder's equity | 151,421 | 152,700 | |||||||||||||||||
Noncontrolling interest | 2,358 | 2,273 | |||||||||||||||||
Total equity | 153,779 | 154,973 | |||||||||||||||||
Total liabilities and equity | 2,002,213 | 1,856,646 | |||||||||||||||||
Citibank, N.A. and Subsidiaries | |||||||||||||||||||
Assets | |||||||||||||||||||
Cash and due from banks | 19,986 | 20,246 | |||||||||||||||||
Deposits with banks | 145,122 | 154,372 | |||||||||||||||||
Federal funds sold and securities purchased under agreements to resell | 20,124 | 31,434 | |||||||||||||||||
Trading account assets | 147,411 | 156,380 | |||||||||||||||||
Investments | 248,377 | 233,086 | |||||||||||||||||
Loans, net of unearned income | |||||||||||||||||||
Loans, net of unearned income | 499,413 | 477,974 | |||||||||||||||||
Allowance for loan losses | (22,372) | (22,685) | |||||||||||||||||
Total loans, net | 477,041 | 455,289 | |||||||||||||||||
Goodwill | 10,209 | 10,200 | |||||||||||||||||
Intangible assets | 7,917 | 8,243 | |||||||||||||||||
Premises and equipment, net | 4,681 | 4,832 | |||||||||||||||||
Interest and fees receivable | 6,813 | 6,840 | |||||||||||||||||
Other assets | 83,229 | 80,439 | |||||||||||||||||
Total assets | 1,170,910 | 1,161,361 | |||||||||||||||||
Liabilities | |||||||||||||||||||
Non-interest-bearing deposits in U.S. offices | 73,820 | 76,729 | |||||||||||||||||
Interest-bearing deposits in U.S. offices | 176,352 | 176,149 | |||||||||||||||||
Non-interest-bearing deposits in offices outside the U.S. | 40,600 | 39,414 | |||||||||||||||||
Interest-bearing deposits in offices outside the U.S. | 474,660 | 479,350 | |||||||||||||||||
Total deposits | 765,432 | 771,642 | |||||||||||||||||
Trading account liabilities | 51,469 | 52,010 | |||||||||||||||||
Purchased funds and other borrowings | 85,146 | 89,503 | |||||||||||||||||
Accrued taxes and other expenses | 8,270 | 9,046 | |||||||||||||||||
Long-term debt and subordinated notes | 99,739 | 82,086 | |||||||||||||||||
Other liabilities | 40,093 | 39,181 | |||||||||||||||||
Total liabilities | 1,050,149 | 1,043,468 | |||||||||||||||||
Stockholder's equity | |||||||||||||||||||
Capital stock ($20 par value) outstanding shares: 37,534,553 in each period | 751 | 751 | |||||||||||||||||
Surplus | 108,401 | 107,923 | |||||||||||||||||
Retained earnings | 21,527 | 19,457 | |||||||||||||||||
Accumulated other comprehensive income (loss) | (11,188) | [1] | (11,532) | [1] | |||||||||||||||
Total stockholder's equity | 119,491 | 116,599 | |||||||||||||||||
Noncontrolling interest | 1,270 | 1,294 | |||||||||||||||||
Total equity | 120,761 | 117,893 | |||||||||||||||||
Total liabilities and equity | 1,170,910 | 1,161,361 | |||||||||||||||||
Citibank, N.A. and Subsidiaries | Consolidated VIEs | |||||||||||||||||||
Assets | |||||||||||||||||||
Cash and due from banks | 2,205 | ||||||||||||||||||
Trading account assets | 3,833 | ||||||||||||||||||
Investments | 9,091 | ||||||||||||||||||
Loans, net of unearned income | |||||||||||||||||||
Consumer | 43,579 | ||||||||||||||||||
Corporate | 25,514 | ||||||||||||||||||
Loans, net of unearned income | 69,093 | ||||||||||||||||||
Allowance for loan losses | (336) | ||||||||||||||||||
Total loans, net | 68,757 | ||||||||||||||||||
Other assets | 1,248 | ||||||||||||||||||
Total assets | 85,134 | ||||||||||||||||||
Liabilities | |||||||||||||||||||
Short-term borrowings | 27,016 | ||||||||||||||||||
Long-term debt and subordinated notes | 38,749 | ||||||||||||||||||
Other liabilities | 1,734 | ||||||||||||||||||
Total liabilities | 67,499 | ||||||||||||||||||
Consolidated VIEs | |||||||||||||||||||
Assets | |||||||||||||||||||
Cash and due from banks | 2,776 | ||||||||||||||||||
Trading account assets | 10,738 | ||||||||||||||||||
Investments | 10,859 | ||||||||||||||||||
Loans, net of unearned income | |||||||||||||||||||
Consumer | 157,834 | ||||||||||||||||||
Corporate | 26,592 | ||||||||||||||||||
Loans, net of unearned income | 184,426 | ||||||||||||||||||
Allowance for loan losses | (14,520) | ||||||||||||||||||
Total loans, net | 169,906 | ||||||||||||||||||
Other assets | 2,588 | ||||||||||||||||||
Total assets | 196,867 | ||||||||||||||||||
Liabilities | |||||||||||||||||||
Short-term borrowings | 39,996 | ||||||||||||||||||
Long-term debt and subordinated notes | 113,604 | ||||||||||||||||||
Other liabilities | 2,531 | ||||||||||||||||||
Total liabilities | $156,131 | ||||||||||||||||||
[1]Amounts at March 31, 2010 and December 31, 2009 include the after-tax amounts for net unrealized gains (losses) on investment securities of $(3.720) billion and $(4.735) billion, respectively, for foreign currency translation of $(4.041) billion and $(3.255) billion, respectively, for cash flow hedges of $(2.235) billion and $(2.367) billion, respectively, and for pension liability adjustments of $(1.192) billion and $(1.175) million, respectively. |
7_CITIBANK CONSOLIDATED BALANCE
CITIBANK CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | ||
In Millions, except Share data in Thousands | Mar. 31, 2010
| Dec. 31, 2009
|
Investments, pledged to creditors | $17,506 | $15,154 |
Capital stock, par value (in dollars per share) | 0.01 | 0.01 |
Capital stock, outstanding shares (in shares) | 28,620,248 | 28,483,267 |
Consumer loans, at fair value | 2,911 | 34 |
Corporate loans, at fair value | 2,457 | 1,405 |
Long-term debt, at fair value | 28,112 | 25,942 |
Citibank, N.A. and Subsidiaries | ||
Trading account assets, pledged to creditors | 463 | 914 |
Investments, pledged to creditors | 3,339 | 3,849 |
Capital stock, par value (in dollars per share) | $20 | $20 |
Capital stock, outstanding shares (in shares) | 37,535 | 37,535 |
Unrealized gains (losses) on investment securities, after-tax | (3,720) | (4,735) |
Foreign currency translation, after-tax | (4,041) | (3,255) |
Cash flow hedges, after-tax | (2,235) | (2,367) |
Pension liability adjustments, after-tax | (1,192) | (1,175) |
Citibank, N.A. and Subsidiaries | Consolidated VIEs | ||
Consumer loans, at fair value | 2,880 | |
Corporate loans, at fair value | 494 | |
Long-term debt, at fair value | 3,084 | |
Consolidated VIEs | ||
Consumer loans, at fair value | 2,880 | |
Corporate loans, at fair value | 1,266 | |
Long-term debt, at fair value | $7,005 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | |
3 Months Ended
Mar. 31, 2010 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1.BASIS OF PRESENTATION The accompanying unaudited Consolidated Financial Statements as of March31, 2010 and for the three-month period ended March31, 2010 include the accounts of CitigroupInc. (Citigroup) and its subsidiaries (collectively, the Company). In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation, have been reflected. The accompanying Unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes included in Citigroup's Annual Report on Form10-K for the fiscal year ended December31, 2009. Certain financial information that is normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles, but is not required for interim reporting purposes, has been condensed or omitted. Management must make estimates and assumptions that affect the Consolidated Financial Statements and the related footnote disclosures. While management makes its best judgment, actual results could differ from those estimates. Current market conditions increase the risk and complexity of the judgments in these estimates. Certain reclassifications have been made to the prior-period's financial statements to conform to the current period's presentation. As noted above, the Notes to Consolidated Financial Statements are unaudited. Citibank, N.A. Citibank, N.A. is a commercial bank and wholly owned subsidiary of CitigroupInc. Citibank's principal offerings include consumer finance, mortgage lending, and retail banking products and services; investment banking, commercial banking, cash management, trade finance and e-commerce products and services; and private banking products and services. The Company includes a balance sheet and statement of changes in stockholder's equity for Citibank, N.A. to provide information about this entity to shareholders of Citigroup and international regulatory agencies. (See Note21 to the Consolidated Financial Statements for further discussion.) Significant Accounting Policies The Company's accounting policies are fundamental to understanding management's discussion and analysis of results of operations and financial condition. The Company has identified six policies as being significant because they require management to make subjective and/or complex judgments about matters that are inherently uncertain. These policies relate to Valuations of Financial Instruments, Allowance for Credit Losses, Securitizations, Goodwill, Income Taxes and Legal Reserves. The Company, in consultation with the Audit Committee of the Board of Directors, has reviewed and approved these significant accounting policies, which are further described in the Company's Annual Report on Form10-K for the fiscal year ended December31, 2009. Principles of Consolidation The Consolidated Financial Statements include the accounts of Citigroup and its subsidiaries (the Company). The Company consolidates subsidiaries in which it holds, directly or indirectly, more than 50% of the voting rights or where it exercises control. Entities where |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | |
3 Months Ended
Mar. 31, 2010 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | 2.DISCONTINUED OPERATIONS Sale of Nikko Cordial On October1, 2009, the Company announced the successful completion of the sale of Nikko Cordial Securities to Sumitomo Mitsui Banking Corporation. The transaction had a total cash value to Citi of 776billion yen (US$8.7billion at an exchange rate of 89.60 yen to US$1.00 as of September30, 2009). The cash value is composed of the purchase price for the transferred business of 545billion yen, the purchase price for certain Japanese-listed equity securities held by Nikko Cordial Securities of 30billion yen, and 201billion yen of excess cash derived through the repayment of outstanding indebtedness to Citi. After considering the impact of foreign exchange hedges of the proceeds of the transaction, the sale resulted in an immaterial gain in 2009. A total of about 7,800 employees are included in the transaction. The Nikko Cordial operations had total assets and total liabilities of approximately $24billion and $16billion, respectively, at the time of sale, which were reflected in Citi Holdings prior to the sale. Results for all of the Nikko Cordial businesses sold are reported as Discontinued operations for all periods presented. Summarized financial information for Discontinued operations, including cash flows, related to the sale of Nikko Cordial is as follows: Three Months Ended March31, In millions of dollars 2010 2009 Total revenues, net of interest expense $ 92 $ 268 Loss from discontinued operations $ (7 ) $ (134 ) Gain on sale 94 Benefit for income taxes and noncontrolling interest, net of taxes (122 ) (50 ) Income (loss) from discontinued operations, net of taxes $ 209 $ (84 ) Three Months Ended March31, In millions of dollars 2010 2009 Cash flows from operating activities $ (133 ) $ (1,184 ) Cash flows from investing activities 185 1,239 Cash flows from financing activities Net cash provided by discontinued operations $ 52 $ 55 Sale of Citigroup's German Retail Banking Operations On December5, 2008, Citigroup sold its German retail banking operations to Credit Mutuel for 5.2billion Euros in cash plus the German retail bank's operating net earnings accrued in 2008 through the closing. The sale resulted in an after-tax gain of approximately $3.9billion including the after-tax gain on the foreign currency hedge of $383million recognized during the fourth quarter of 2008. The sale did not include the corporate and investment banking business or the Germany-based European data center. Results for all of the German retail banking businesses sold are reported as Discontinued operations for all periods presented. Summarized financial information for Discontinued operations, including cash flows, related to the sale of the German retail banking operations is as follows: Three Months Ended March31, In millions of dollars 2010 2009 Total revenues, net of interest expense $ 21 $ 6 Income (loss) from discontinued operations |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | |
3 Months Ended
Mar. 31, 2010 | |
BUSINESS SEGMENTS | |
BUSINESS SEGMENTS | 3.BUSINESS SEGMENTS The following table presents certain information regarding the Company's operations by segment: Revenues, net of interest expense(1) Provision (benefit) for income taxes Income (loss) from continuing operations(1)(2) Identifiable assets Three Months Ended March31, In millions of dollars, except identifiable assets in billions Mar.31, 2010 Dec.31, 2009 2010 2009 2010 2009 2010 2009 Regional Consumer Banking $ 8,082 $ 6,353 $ 227 $ 156 $ 1,014 $ 791 $ 313 $ 257 Institutional Clients Group 10,440 14,574 1,830 3,218 4,147 7,040 923 882 Subtotal Citicorp $ 18,522 $ 20,927 $ 2,057 $ 3,374 $ 5,161 $ 7,831 $ 1,236 $ 1,139 Citi Holdings 6,550 3,094 (946 ) (3,588 ) (876 ) (5,485 ) 503 487 Corporate/Other 349 500 (75 ) 1,049 (36 ) (652 ) 263 231 Total $ 25,421 $ 24,521 $ 1,036 $ 835 $ 4,249 $ 1,694 $ 2,002 $ 1,857 (1) Includes Citicorp total revenues, net of interest expense, in North America of $3.8billion and $2.5billion; in EMEA of $405million and $360million; in Latin America of $2.1billion and $1.9billion; and in Asia of $1.8billion and $1.6billion for the three months ended March31, 2010 and 2009, respectively. Regional numbers exclude Citi Holdings and Corporate/Other, which largely operate within the U.S. (2) Includes pretax provisions (credits) for credit losses and for benefits and claims in the Regional Consumer Banking results of $2.9billion and $1.9billion; in the ICG results of $(85) million and $421million; and in the Citi Holdings results of $5.8billion and $8.0billion for the three months ended March31, 2010 and 2009, respectively. |
INTEREST REVENUE AND EXPENSE
INTEREST REVENUE AND EXPENSE | |
3 Months Ended
Mar. 31, 2010 | |
INTEREST REVENUE AND EXPENSE | |
INTEREST REVENUE AND EXPENSE | 4.INTEREST REVENUE AND EXPENSE For the three months ended March31, 2010 and 2009, respectively, interest revenue and expense consisted of the following: Three Months Ended March31, In millions of dollars 2010 2009 Interest revenue Loan interest, including fees $ 14,673 $ 12,855 Deposits with banks 290 436 Federal funds sold and securities purchased under agreements to resell 752 885 Investments, including dividends 3,109 3,176 Trading account assets(1) 1,872 2,951 Other interest 156 280 Total interest revenue $ 20,852 $ 20,583 Interest expense Deposits(2) $ 2,080 $ 2,848 Federal funds purchased and securities loaned or sold under agreements to repurchase 654 1,104 Trading account liabilities(1) 63 108 Short-term borrowings 276 463 Long-term debt 3,218 3,134 Total interest expense $ 6,291 $ 7,657 Net interest revenue $ 14,561 $ 12,926 Provision for loan losses 8,366 9,915 Net interest revenue after provision for loan losses $ 6,195 $ 3,011 (1) Interest expense on Trading account liabilities of ICG is reported as a reduction of interest revenue from Trading account assets. (2) Includes FDIC deposit insurance fees and charges of $223million and $299million for the three months ended ended March31, 2010 and March31, 2009, respectively. |
COMMISSIONS AND FEES
COMMISSIONS AND FEES | |
3 Months Ended
Mar. 31, 2010 | |
COMMISSIONS AND FEES | |
COMMISSIONS AND FEES | 5.COMMISSIONS AND FEES Commissions and fees revenue includes charges to customers for credit and bank cards, including transaction-processing fees and annual fees; advisory and equity and debt underwriting services; lending and deposit-related transactions, such as loan commitments, standby letters of credit and other deposit and loan servicing activities; investment management-related fees, including brokerage services and custody and trust services; and insurance fees and commissions. The following table presents commissions and fees revenue for the three months ended March31: Three Months Ended March31, In millions of dollars 2010 2009 Credit cards and bank cards $ 965 $ 977 Investment banking 845 814 Smith Barney 515 ICG trading-related 453 347 Transaction services 347 316 Other consumer 331 241 Checking-related 273 264 Other ICG 172 150 Primerica 91 73 Loan servicing(1) 254 196 Corporate finance 96 250 Other (67 ) 25 Total commissions and fees $ 3,760 $ 4,168 (1) Includes fair value adjustments on mortgage servicing assets. The mark-to-market on the underlying economic hedges of the MSRs is included in Other revenue. |
PRINCIPAL TRANSACTIONS
PRINCIPAL TRANSACTIONS | |
3 Months Ended
Mar. 31, 2010 | |
PRINCIPAL TRANSACTIONS | |
PRINCIPAL TRANSACTIONS | 6.PRINCIPAL TRANSACTIONS Principal transactions revenue consists of realized and unrealized gains and losses from trading activities. Trading activities include revenues from fixed income, equities, credit and commodities products, as well as foreign exchange transactions. Not included in the table below is the impact of net interest revenue related to trading activities, which is an integral part of trading activities' profitability. The following tables present principal transactions revenue for the three months ended March31: Three Months Ended March31, In millions of dollars 2010 2009 Regional Consumer Banking $ 134 $ 233 Institutional Clients Group 3,344 6,950 Subtotal Citicorp $ 3,478 $ 7,183 Local Consumer Lending (201 ) 340 Brokerage and Asset Management (26 ) (17 ) Special Asset Pool 1,147 (4,042 ) Subtotal Citi Holdings $ 920 $ (3,719 ) Corporate/Other (347 ) 206 Total Citigroup $ 4,051 $ 3,670 ThreeMonths EndedMarch31, In millions of dollars 2010 2009 Interest rate contracts(1) $ 1,309 $ 4,597 Foreign exchange contracts(2) 241 1,006 Equity contracts(3) 565 1,078 Commodity and other contracts(4) 109 697 Credit derivatives(5) 1,827 (3,708 ) Total Citigroup $ 4,051 $ 3,670 (1) Includes revenues from government securities and corporate debt, municipal securities, preferred stock, mortgage securities, and other debt instruments. Also includes options on fixed income securities, interest rate swaps, swap options, caps and floors, financial futures, OTC options, and forward contracts on fixed income securities. (2) Includes revenues from foreign exchange spot, forward, option and swap contracts, as well as translation gains and losses. (3) Includes revenues from common, preferred and convertible preferred stock, convertible corporate debt, equity-linked notes, and exchange-traded and OTC equity options and warrants. (4) Primarily includes revenues from crude oil, refined oil products, natural gas, and other commodities trades. (5) Includes revenues from structured credit products. |
RETIREMENT BENEFITS
RETIREMENT BENEFITS | |
3 Months Ended
Mar. 31, 2010 | |
RETIREMENT BENEFITS | |
RETIREMENT BENEFITS | 7.RETIREMENT BENEFITS The Company has several non-contributory defined benefit pension plans covering certain U.S. employees in 2009 and has various defined benefit pension and termination indemnity plans covering employees outside the United States. The U.S. qualified defined benefit plan provides benefits under a cash balance formula. However, employees satisfying certain age and service requirements remain covered by a prior final average pay formula under that plan. Effective January1, 2008, the U.S. qualified pension plan was frozen for most employees. Accordingly, no additional compensation-based contributions were credited to the cash balance plan for existing plan participants during 2008 or 2009. However, employees still covered under the prior final pay plan will continue to accrue benefits. The Company also offers postretirement health care and life insurance benefits to certain eligible U.S. retired employees, as well as to certain eligible employees outside the United States. The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (collectively, the "Act") were signed into law in the U.S. in March 2010. One provision of the Act that impacts Citigroup is the elimination of the tax deductibility for benefits paid that are related to the retiree Medicare PartD subsidy starting in 2013. Citigroup is required to recognize the full accounting impact in the period in which the Act is signed, which resulted in a $45million reduction in deferred tax assets with a corresponding charge to income from continuing operations in the first quarter of 2010. The other provisions of the Act are not expected to have a significant impact on Citigroup's pension and post-retirement plans. The following tables summarize the components of net (benefit) expense recognized in the Consolidated Statement of Income and the funded status and amounts recognized in the Consolidated Balance Sheet for the Company's U.S. qualified pension plan, postretirement plans and plans outside the United States. The Company uses a December31 measurement date for the U.S. plans as well as the plans outside the United States. Net (Benefit) Expense Three Months Ended March31, Pension Plans Postretirement Benefit Plans U.S. plans(1) Non-U.S. plans U.S. plans Non-U.S. plans In millions of dollars 2010 2009 2010 2009 2010 2009 2010 2009 Benefits earned during the period $ 4 $ 6 $ 41 $ 37 $ $ $ 6 $ 7 Interest cost on benefit obligation 159 163 84 70 14 15 26 21 Expected return on plan assets (211 ) (229 ) (94 ) (78 ) (2 ) (2 ) (25 ) (18 ) Amortization of unrecognized: Prior service cost (benefit) 1 1 Net actuarial loss 11 14 15 1 1 5 4 Net (benefit) expense $ (37 ) $ (59 ) $ 46 $ 44 $ 13 $ 14 $ 12 $ 14 (1) The U.S. plans exclude nonqu |
EARNINGS PER SHARE
EARNINGS PER SHARE | |
3 Months Ended
Mar. 31, 2010 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 8.EARNINGS PER SHARE The following is a reconciliation of the income and share data used in the basic and diluted earnings per share computations for the three months ended March31: Three Months Ended March31, In millions, except per-share amounts 2010 2009 Income before attribution of noncontrolling interests $ 4,249 $ 1,694 Noncontrolling interests 32 (16 ) Net income from continuing operations (for EPS purposes) $ 4,217 $ 1,710 Income (loss) from discontinued operations, net of taxes 211 (117 ) Citigroup's net income (loss) $ 4,428 $ 1,593 Preferred dividends (1,221 ) Impact of the conversion price reset related to the $12.5billion convertible preferred stock private issuance (1,285 ) Preferred stock SeriesH discount accretion (53 ) Net income (loss) available to common shareholders $ 4,428 $ (966 ) Income allocated to participating securities 28 Net income (loss) allocated to common shareholders for basic EPS(1) $ 4,400 $ (966 ) Effect of dilutive securities 270 Net income (loss) allocated to common shareholders for diluted EPS(1) $ 4,400 $ (696 ) Weighted-average common shares outstanding applicable to basic EPS 28,444.3 5,385.0 Effect of dilutive securities TDECs 882.8 Convertible securities 0.7 568.3 Other employee plans 5.7 Adjusted weighted-average common shares outstanding applicable to diluted EPS(2) 29,333.5 5,953.3 Basic earnings per share(3) Income (loss) from continuing operations $ 0.15 $ (0.16 ) Discontinued operations 0.01 (0.02 ) Net income (loss) $ 0.15 $ (0.18 ) Diluted earnings per share(3) Income (loss) from continuing operations $ 0.14 $ (0.16 ) Discontinued operations 0.01 (0.02 ) Net income (loss) $ 0.15 $ (0.18 ) (1) Due to the net loss available to common shareholders in 2009, loss available to common shareholders for basic EPS was used to calculate diluted EPS. Adding back the effect of dilutive securities would result in anti-dilution. (2) Due to the net loss available to common shareholders in 2009, basic shares were used to calculate diluted EPS. Adding dilutive securities to the denominator would result in anti-dilution. (3) Due to rounding, earnings per share on continuing operations and discontinued operations may not sum to earnings per share on net income. During the first three months of 2010 and 2009, weighted-average options to purchase 390.5million and 121.1million shares of common stock, respectively, were outstanding but not included in the computation of earnings per common share, because the weighted-average exercise prices of $11.21 and $40.34, respectively, were greater than the average market price of the Company's common stock. In addition, equity awards granted under the Management Committee Long-Term Incentive Plan (MC LTIP) were not inclu |
TRADING ACCOUNT ASSETS AND LIAB
TRADING ACCOUNT ASSETS AND LIABILITIES | |
3 Months Ended
Mar. 31, 2010 | |
TRADING ACCOUNT ASSETS AND LIABILITIES | |
TRADING ACCOUNT ASSETS AND LIABILITIES | 9.TRADING ACCOUNT ASSETS AND LIABILITIES Trading account assets and Trading account liabilities, at fair value, consisted of the following at March31, 2010 and December31, 2009: In millions of dollars March31, 2010 December31, 2009 Trading account assets Mortgage-backed securities(1) U.S. government sponsored agency guaranteed $ 29,154 $ 20,638 Prime 1,368 1,156 Alt-A 1,364 1,229 Subprime 7,148 9,734 Non-U.S. residential 2,779 2,368 Commercial 3,205 3,455 Total mortgage-backed securities(1) $ 45,018 $ 38,580 U.S. Treasury and federal agencies U.S. Treasuries $ 27,174 $ 28,938 Agency and direct obligations 5,248 2,041 Total U.S. Treasury and federal agencies $ 32,422 $ 30,979 State and municipal securities 7,672 $ 7,147 Foreign government securities 86,000 72,769 Corporate 56,995 51,985 Derivatives(2) 53,710 58,879 Equity securities 43,054 46,221 Asset-backed securities(1) 5,475 4,089 Other debt securities 15,437 32,124 Total trading account assets $ 345,783 $ 342,773 Trading account liabilities Securities sold, not yet purchased $ 83,134 $ 73,406 Derivatives(2) 59,614 64,106 Total trading account liabilities $ 142,748 $ 137,512 (1) The Company invests in mortgage-backed securities and asset-backed securities. Mortgage securitizations are generally considered variable interest entities (VIEs). The Company's maximum exposure to loss from these VIEs is equal to the carrying amount of the securities, which is reflected in the table above. For mortgage-backed and asset-backed securitizations in which the Company has other involvement, information is provided in Note14 to the Consolidated Financial Statements. (2) Presented net, pursuant to master netting agreements. See Note15 to the Consolidated Financial Statements for a discussion regarding the accounting and reporting for derivatives. |
INVESTMENTS
INVESTMENTS | |
3 Months Ended
Mar. 31, 2010 | |
INVESTMENTS | |
INVESTMENTS | 10.INVESTMENTS In millions of dollars March31, 2010 December31, 2009 Securities available-for-sale $ 253,367 $ 239,599 Debt securities held-to-maturity(1) 46,348 51,527 Non-marketable equity securities carried at fair value(2) 8,771 6,830 Non-marketable equity securities carried at cost(3) 8,247 8,163 Total investments $ 316,733 $ 306,119 (1) Recorded at amortized cost, less credit-related impairment. (2) Unrealized gains and losses for non-marketable equity securities carried at fair value are recognized in earnings. (3) Non-marketable equity securities carried at cost primarily consist of shares issued by the Federal Reserve Bank, Federal Home Loan Bank, foreign central banks and various clearing houses of which Citigroup is a member. Securities Available-for-Sale The amortized cost and fair value of securities available-for-sale at March31, 2010 and December31, 2009 were as follows: March31, 2010 December31, 2009 In millions of dollars Amortized cost Gross unrealized gains Gross unrealized losses Fair value Amortized cost Gross unrealized gains Gross unrealized losses Fair value Debt securities available-for-sale Mortgage-backed securities(1) U.S. government-agency guaranteed $ 20,075 $ 407 $ 25 $ 20,457 $ 20,625 $ 339 $ 50 $ 20,914 Prime 6,749 13 884 5,878 7,291 119 932 6,478 Alt-A 248 5 1 252 538 93 4 627 Subprime 1 1 1 1 Non-U.S. residential 202 2 204 258 3 255 Commercial 635 16 65 586 883 10 100 793 Total mortgage-backed securities $ 27,910 $ 443 $ 975 $ 27,378 $ 29,596 $ 561 $ 1,089 $ 29,068 U.S. Treasury and federal agency securities U.S. Treasury 31,857 41 155 31,743 26,857 36 331 26,562 Agency obligations 35,761 80 85 35,756 27,714 46 208 27,552 Total U.S. Treasury and federal agency securities $ 67,618 $ 121 $ 240 $ 67,499 $ 54,571 $ 82 $ 539 $ 54,114 State and municipal 16,531 114 1,300 15,345 16,677 147 1,214 15,610 Foreign government 106,226 1,227 181 107,272 101,987 860 328 102,519 Corporate 16,798 367 79 17,086 20,024 435 146 20,313 Asset-backed securities(1) 10,310 61 88 10,283 10,089 50 93 10,046 Other debt securities 2,614 28 69 2,573 2,179 21 77 2,123 Total debt securities available- for-sale $ 248,007 $ 2,361 $ 2,932 $ 247,436 $ 235,123 $ 2,156 $ 3,486 $ 233,793 Marketable eq |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | |
3 Months Ended
Mar. 31, 2010 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | 11.GOODWILL AND INTANGIBLE ASSETS Goodwill The changes in Goodwill during the first three months of 2010 were as follows: In millions of dollars Balance at December31, 2009 $ 25,392 Foreign exchange translation 294 Smaller acquisitions/divestitures, purchase accounting adjustments and other (24 ) Balance at March31, 2010 $ 25,662 During the first quarter of 2010, no goodwill was written off due to impairment and no interim impairment test on goodwill was performed. Goodwill is tested for impairment annually during the third quarter at the reporting unit level and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. There were no triggering events present during the first quarter of 2010 for any reporting unit and an interim goodwill impairment test was not required. The Company will continue to monitor the Local Consumer LendingCards reporting unit for triggering events in the interim as the goodwill in this reporting unit may be particularly sensitive to further deterioration in economic conditions. The fair value as a percentage of allocated book value for Local Consumer LendingCards is 112%, based on the results of the goodwill impairment test performed during the fourth quarter of 2009. If economic conditions deteriorate or other events adversely impact the business models and the related assumptions including the discount rate, expected recovery, and expected loss rates used to value this reporting unit, the Company could potentially experience future material impairment charges with respect to the $4,662million of goodwill remaining in its Local Consumer LendingCards reporting unit. Any such charges, by themselves, would not negatively affect the Company's Tier1 Common, Tier1 Capital or Total Capital regulatory ratios, its Tangible Common Equity or the Company's liquidity position. The realignment of Citicorp and Citi Holdings during the first quarter of 2010 left Citigroup's reporting segments and reporting units unchanged. However, because certain businesses were moved from Brokerage and Asset Management to LATAM Regional Consumer Bank, goodwill was reassigned from Brokerage and Asset Management to LATAM Regional Consumer Bank, using a relative fair value approach. The following tables present the Company's goodwill balances by reporting unit and by segment at March31, 2010: In millions of dollars Reporting unit(1) Goodwill North America Regional Consumer Banking $ 2,452 EMEA Regional Consumer Banking 257 Asia Regional Consumer Banking 5,758 Latin America Regional Consumer Banking 1,712 Securities and Banking 9,184 Transaction Services 1,573 Brokerage and Asset Management 64 Local Consumer LendingCards 4,662 Total $ 25,662 By Segment Regional Consumer Banking $ 10,179 Institutional Clients Group 10,757 Citi Holdings 4,726 Total $ 25,662 (1) Local Consumer LendingOther is excluded from |
DEBT
DEBT | |
3 Months Ended
Mar. 31, 2010 | |
DEBT | |
DEBT | 12.DEBT Short-Term Borrowings Short-term borrowings consist of commercial paper and other borrowings as follows: In millions of dollars March31, 2010 December31, 2009 Commercial paper Citigroup FundingInc. (CFI) $ 10,770 $ 9,846 Other Citigroup subsidiaries 455 377 Consolidated VIE-related commercial paper 31,247 $ 42,472 $ 10,223 Other short-term borrowings 54,222 58,656 Total short-term borrowings $ 96,694 $ 68,879 Borrowings under bank lines of credit may be at interest rates based on LIBOR, CD rates, the prime rate, or bids submitted by the banks. Citigroup pays commitment fees for its lines of credit. Some of Citigroup's non-bank subsidiaries have credit facilities with Citigroup's subsidiary depository institutions, including Citibank, N.A. Borrowings under these facilities must be secured in accordance with Section23A of the Federal Reserve Act. Citigroup Global Markets HoldingsInc. (CGMHI) has substantial borrowing agreements consisting of facilities that CGMHI has been advised are available, but where no contractual lending obligation exists. These arrangements are reviewed on an ongoing basis to ensure flexibility in meeting CGMHI's short-term requirements. Long-Term Debt In millions of dollars March31, 2010 December31, 2009 Citigroup parent company $ 192,325 $ 197,804 Other Citigroup subsidiaries(1) 69,154 97,294 CGMHI 9,091 13,422 CFI(2) 55,100 55,499 Consolidated VIE related long-term debt 113,604 Total long-term debt $ 439,274 $ 364,019 (1) At March31, 2010 and December31, 2009, collateralized advances from the Federal Home Loan Bank were $21.6billion and $24.1billion, respectively. (2) Includes Principal-Protected Trust Securities (Safety First Trust Securities) with carrying values of $534million issued by Safety First Trust Series2006-1, 2007-1, 2007-2, 2007-3, 2007-4, 2008-1, 2008-2, 2008-3, 2008-4, 2008-5, 2008-6, 2009-1, 2009-2, and 2009-3 (collectively, the "Safety First Trusts") at March31, 2010 and $528million issued by Safety First Trust Series2006-1, 2007-1, 2007-2, 2007-3, 2007-4, 2008-1, 2008-2, 2008-3, 2008-4, 2008-5, 2008-6, 2009-1, 2009-2, and 2009-3 at December31, 2009. CFI owns all of the voting securities of the Safety First Trusts. The Safety First Trusts have no assets, operations, revenues or cash flows other than those related to the issuance, administration, and repayment of the Safety First Trust Securities and the Safety First Trusts' common securities. The Safety First Trusts' obligations under the Safety First Trust Securities are fully and unconditionally guaranteed by CFI, and CFI's guarantee obligations are fully and unconditionally guaranteed by Citigroup. CGMHI has committed long-term financing facilities with unaffiliated banks. At March31, 2010, CGMHI had drawn down the full $900million available under these facilities, of which $150million is guaranteed by Citigroup. Generally, a bank can terminate these facilities by giving CGMHI |
CHANGES IN ACCUMULATED OTHER CO
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
3 Months Ended
Mar. 31, 2010 | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 13.CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in each component of "Accumulated Other Comprehensive Income (Loss)" for the three-month period ended March31, 2010 are as follows: In millions of dollars Net unrealized gains (losses) on investment securities Foreign currency translation adjustment, net of hedges Cash flow hedges Pension liability adjustments Accumulated other comprehensive income (loss) Balance, December31, 2009 $ (4,347 ) $ (7,947 ) $ (3,182 ) $ (3,461 ) $ (18,937 ) Change in net unrealized gains (losses) on investment securities, net of taxes 1,210 1,210 Reclassification adjustment for net gains included in net income, net of taxes (28 ) (28 ) Foreign currency translation adjustment, net of taxes(1) (279 ) (279 ) Cash flow hedges, net of taxes(2) 223 223 Pension liability adjustment, net of taxes(3) (48 ) (48 ) Change $ 1,182 $ (279 ) $ 223 $ (48 ) $ 1,078 Balance, March31, 2010(4) $ (3,165 ) $ (8,226 ) $ (2,959 ) $ (3,509 ) $ (17,859 ) (1) Primarily impacted by the movements in the British pound, Euro, Japanese yen, Korean won, and Mexican peso against the U.S. dollar, and changes in related tax effects and hedges. (2) Primarily driven by Citigroup's pay fixed/receive floating interest rate swap programs that are hedging the floating rates on deposits and long-term debt. (3) Reflects adjustments to the funded status of pension and postretirement plans, which is the difference between the fair value of the plan assets and the projected benefit obligation. (4) The March31, 2010 balance of $(3.2) billion for net unrealized losses on investment securities consists of $(4.2) billion for those investments classified as held-to-maturity and $1.0billion for those classified as available-for-sale. |
SECURITIZATIONS AND VARIABLE IN
SECURITIZATIONS AND VARIABLE INTEREST ENTITIES | |
3 Months Ended
Mar. 31, 2010 | |
SECURITIZATIONS AND VARIABLE INTEREST ENTITIES | |
SECURITIZATIONS AND VARIABLE INTEREST ENTITIES | 14.SECURITIZATIONS AND VARIABLE INTEREST ENTITIES Overview Citigroup and its subsidiaries are involved with several types of off-balance sheet arrangements, including special purpose entities (SPEs). See Note1 to the Consolidated Financial Statements for a discussion of changes to the accounting for transfers and servicing of financial assets and consolidation of Variable Interest Entities (VIEs), including the elimination of Qualifying SPEs (QSPEs). Uses of SPEs An SPE is an entity designed to fulfill a specific limited need of the company that organized it. The principal uses of SPEs are to obtain liquidity and favorable capital treatment by securitizing certain of Citigroup's financial assets, to assist clients in securitizing their financial assets, and to create investment products for clients. SPEs may be organized in many legal forms including trusts, partnerships or corporations. In a securitization, the company transferring assets to an SPE converts all (or a portion) of those assets into cash before they would have been realized in the normal course of business, through the SPE's issuance of debt and equity instruments, certificates, commercial paper and other notes of indebtedness, which are recorded on the balance sheet of the SPE and not reflected in the transferring company's balance sheet, assuming applicable accounting requirements are satisfied. Investors usually have recourse to the assets in the SPE and often benefit from other credit enhancements, such as a collateral account or over-collateralization in the form of excess assets in the SPE, a line of credit, or from a liquidity facility, such as a liquidity put option or asset purchase agreement. The SPE can typically obtain a more favorable credit rating from rating agencies than the transferor could obtain for its own debt issuances, resulting in less expensive financing costs than unsecured debt. The SPE may also enter into derivative contracts in order to convert the yield or currency of the underlying assets to match the needs of the SPE investors or to limit or change the credit risk of the SPE. Citigroup may be the provider of certain credit enhancements as well as the counterparty to any related derivative contracts. Since QSPEs were eliminated, most of Citigroup's SPEs are now VIEs. Variable Interest Entities VIEs are entities that have either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest (i.e.,ability to make significant decisions through voting rights, and right to receive the expected residual returns of the entity or obligation to absorb the expected losses of the entity). Investors that finance the VIE through debt or equity interests or other counterparties that provide other forms of support, such as guarantees, subordinated fee arrangements, or certain types of derivative contracts, are variable interest holders in the entity. Since January1, 2010, the variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be th |
DERIVATIVES ACTIVITIES
DERIVATIVES ACTIVITIES | |
3 Months Ended
Mar. 31, 2010 | |
DERIVATIVES ACTIVITIES | |
DERIVATIVES ACTIVITIES | 15.DERIVATIVES ACTIVITIES In the ordinary course of business, Citigroup enters into various types of derivative transactions. These derivative transactions include: Futures and forward contracts which are commitments to buy or sell at a future date a financial instrument, commodity or currency at a contracted price and may be settled in cash or through delivery. Swap contracts which are commitments to settle in cash at a future date or dates that may range from a few days to a number of years, based on differentials between specified financial indices, as applied to a notional principal amount. Option contracts which give the purchaser, for a fee, the right, but not the obligation, to buy or sell within a limited time a financial instrument, commodity or currency at a contracted price that may also be settled in cash, based on differentials between specified indices or prices. Citigroup enters into these derivative contracts relating to interest rate, foreign currency, commodity, and other market/credit risks for the following reasons: Trading PurposesCustomer Needs:Citigroup offers its customers derivatives in connection with their risk-management actions to transfer, modify or reduce their interest rate, foreign exchange and other market/credit risks or for their own trading purposes. As part of this process, Citigroup considers the customers' suitability for the risk involved and the business purpose for the transaction. Citigroup also manages its derivative-risk positions through offsetting trade activities, controls focused on price verification, and daily reporting of positions to senior managers. Trading PurposesOwn Account:Citigroup trades derivatives for its own account and as an active market maker. Trading limits and price verification controls are key aspects of this activity. Hedging:Citigroup uses derivatives in connection with its risk-management activities to hedge certain risks or reposition the risk profile of the Company. For example, Citigroup may issue fixed-rate long-term debt and then enter into a receive-fixed, pay-variable-rate interest rate swap with the same tenor and notional amount to convert the interest payments to a net variable-rate basis. This strategy is the most common form of an interest rate hedge, as it minimizes interest cost in certain yield curve environments. Derivatives are also used to manage risks inherent in specific groups of on-balance-sheet assets and liabilities, including investments, corporate and consumer loans, deposit liabilities, as well as other interest-sensitive assets and liabilities. In addition, foreign-exchange contracts are used to hedge non-U.S.-dollar-denominated debt, foreign-currency-denominated available-for-sale securities, net capital exposures and foreign-exchange transactions. Derivatives may expose Citigroup to market, credit or liquidity risks in excess of the amounts recorded on the Consolidated Balance Sheet. Market risk on a derivative product is the exposure created by potential fluctuations in interest rates, foreign-exchange rates and other factors and is a function of the type of product, the volume of transactions, the tenor |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | |
3 Months Ended
Mar. 31, 2010 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 16.FAIR VALUE MEASUREMENT SFAS157 (now ASC 820-10) defines fair value, establishes a consistent framework for measuring fair value and expands disclosure requirements about fair value measurements. Among other things, the standard requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In addition, it precludes the use of block discounts when measuring the fair value of instruments traded in an active market; and requires recognition of trade-date gains related to certain derivative transactions whose fair value has been determined using unobservable market inputs. This standard also requires that the impact of Citigroup's own credit risk on derivatives and other liabilities measured at fair value be factored into the valuation. Fair Value Hierarchy ASC 820-10 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. These two types of inputs have created the following fair-value hierarchy: Level1: Quoted prices for identical instruments in active markets. Level2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires the use of observable market data when available. The Company considers relevant and observable market prices in its valuations where possible. The frequency of transactions, the size of the bid-ask spread and the amount of adjustment necessary when comparing similar transactions are all factors in determining the liquidity of markets and the relevance of observed prices in those markets. The Company's policy with respect to transfers between levels of the fair value hierarchy is to recognize transfers into and out of each level as of the end of the reporting period. Determination of Fair Value For assets and liabilities carried at fair value, the Company measures such value using the procedures set out below, irrespective of whether these assets and liabilities are carried at fair value as a result of an election or whether they were previously carried at fair value. When available, the Company generally uses quoted market prices to determine fair value and classifies such items as Level1. In some cases where a market price is available, the Company will make use of acceptable practical expedients (such as matrix pricing) to calculate fair value, in which case the items are classified as Level2. If quoted market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sourced market parameters, such as interest rates, currency rates, |
FAIR VALUE ELECTIONS
FAIR VALUE ELECTIONS | |
3 Months Ended
Mar. 31, 2010 | |
FAIR VALUE ELECTIONS | |
FAIR VALUE ELECTIONS | 17.FAIR VALUE ELECTIONS The Company may elect to report most financial instruments and certain other items at fair value on an instrument-by-instrument basis with changes in fair value reported in earnings. After the initial adoption, the election is made upon the acquisition of an eligible financial asset, financial liability or firm commitment or when certain specified reconsideration events occur. The fair-value election may not be revoked once an election is made. The Company also has elected to adopt the fair value accounting provisions for certain assets and liabilities prospectively. Hybrid financial instruments, such as structured notes containing embedded derivatives that otherwise would require bifurcation, as well as certain interest-only instruments, may be accounted for at fair value if the Company makes an irrevocable election to do so on an instrument-by-instrument basis. The changes in fair value are recorded in current earnings. Additional discussion regarding the applicable areas in which fair value elections were made is presented in Note16 to the Consolidated Financial Statements. All servicing rights must now be recognized initially at fair value. The Company has elected fair-value accounting for its mortgage and student loan classes of servicing rights. The impact of adopting this standard was not material. See Note14 to the Consolidated Financial Statements for further discussions regarding the accounting and reporting of mortgage servicing rights. The following table presents, as of March31, 2010 and December31, 2009, the fair value of those positions selected for fair-value accounting, as well as the changes in fair value for the three months ended March31, 2010 and 2009: Fair value at Changes in fair value gains (losses) for three months ended March31, In millions of dollars March31, 2010 December31, 2009 2010 2009(1) Assets Federal funds sold and securities borrowed or purchased under agreements to resell Selected portfolios of securities purchased under agreements to resell, securities borrowed(2) $ 96,596 $ 87,837 $ (13 ) $ (289 ) Trading account assets Selected letters of credit hedged by credit default swaps or participation notes $ 22 $ 30 $ (8 ) $ 2 Certain credit products 13,994 14,338 388 1,139 Certain hybrid financial instruments Retained interests from asset securitizations 769 2,357 (29 ) 507 Total trading account assets $ 14,785 $ 16,725 $ 351 $ 1,648 Investments Certain investments in private equity and real estate ventures $ 237 $ 321 $ 1 $ (28 ) Other 273 253 25 (72 ) Total investments $ 510 $ 574 $ 26 $ (100 ) Loans Certain credit products $ 740 $ 945 $ 9 $ (21 ) Certain corporate loans(3) 1,266 (8 ) Certain consumer loans(3) 2,911 34 249 (1 ) |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
3 Months Ended
Mar. 31, 2010 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 18.FAIR VALUE OF FINANCIAL INSTRUMENTS Estimated Fair Value of Financial Instruments The table below presents the carrying value and fair value of Citigroup's financial instruments. The disclosure excludes leases, affiliate investments, pension and benefit obligations and insurance policy claim reserves. In addition, contract-holder fund amounts exclude certain insurance contracts. Also as required, the disclosure excludes the effect of taxes, any premium or discount that could result from offering for sale at one time the entire holdings of a particular instrument, excess fair value associated with deposits with no fixed maturity and other expenses that would be incurred in a market transaction. In addition, the table excludes the values of non-financial assets and liabilities, as well as a wide range of franchise, relationship and intangible values (but includes mortgage servicing rights), which are integral to a full assessment of Citigroup's financial position and the value of its net assets. The fair value represents management's best estimates based on a range of methodologies and assumptions. The carrying value of short-term financial instruments not accounted for at fair value, as well as receivables and payables arising in the ordinary course of business, approximates fair value because of the relatively short period of time between their origination and expected realization. Quoted market prices are used when available for investments and for both trading and end-user derivatives, as well as for liabilities, such as long-term debt, with quoted prices. For performing loans not accounted for at fair value, contractual cash flows are discounted at quoted secondary market rates or estimated market rates if available. Otherwise, sales of comparable loan portfolios or current market origination rates for loans with similar terms and risk characteristics are used. For loans with doubt as to collectability, expected cash flows are discounted using an appropriate rate considering the time of collection and the premium for the uncertainty of the cash flows. The value of collateral is also considered. For liabilities such as long-term debt not accounted for at fair value and without quoted market prices, market borrowing rates of interest are used to discount contractual cash flows. March31, 2010 December31, 2009 In billions of dollars Carrying value Estimated fair value Carrying value Estimated fair value Assets Investments $ 316.7 $ 318.0 $ 306.1 $ 307.6 Federal funds sold and securities borrowed or purchased under agreements to resell 234.3 234.3 222.0 222.0 Trading account assets 345.8 345.8 342.8 342.8 Loans(1) 670.4 658.3 552.5 542.8 Other financial assets(2) 284.8 284.8 290.9 290.9 March31, 2010 December31, 2009 In billions of dollars Carrying value Estimated fair value Carrying value Estimated fair value Liabilities Deposits $ 827.9 $ 826.8 $ 835.9 $ 834.5 Federal |
GUARANTEES
GUARANTEES | |
3 Months Ended
Mar. 31, 2010 | |
GUARANTEES | |
GUARANTEES | 19.GUARANTEES The Company provides a variety of guarantees and indemnifications to Citigroup customers to enhance their credit standing and enable them to complete a wide variety of business transactions. For certain contracts meeting the definition of a guarantee, the guarantor must recognize, at inception, a liability for the fair value of the obligation undertaken in issuing the guarantee. In addition, the guarantor must disclose the maximum potential amount of future payments the guarantor could be required to make under the guarantee, if there were a total default by the guaranteed parties. The determination of the maximum potential future payments is based on the notional amount of the guarantees without consideration of possible recoveries under recourse provisions or from collateral held or pledged. Such amounts bear no relationship to the anticipated losses, if any, on these guarantees. The following tables present information about the Company's guarantees at March31, 2010 and December31, 2009: Maximum potential amount of future payments In billions of dollars at March31, except carrying value in millions Expire within 1year Expire after 1year Total amount outstanding Carrying value(in millions) 2010 Financial standby letters of credit $ 37.3 $ 47.9 $ 85.2 $ 411.7 Performance guarantees 8.7 4.9 13.6 28.9 Derivative instruments considered to be guarantees 3.8 3.9 7.7 813.7 Loans sold with recourse 0.3 0.3 76.0 Securities lending indemnifications(1) 70.6 70.6 Credit card merchant processing(1) 54.9 54.9 Custody indemnifications and other 34.5 34.5 275.7 Total $ 175.3 $ 91.5 $ 266.8 $ 1,606.0 (1) The carrying values of guarantees of collections of contractual cash flows, securities lending indemnifications and credit card merchant processing are not material, as the Company has determined that the amount and probability of potential liabilities arising from these guarantees are not significant. Maximum potential amount of future payments In billions of dollars at December31, except carrying value in millions Expire within 1year Expire after 1year Total amount outstanding Carrying value(in millions) 2009 Financial standby letters of credit $ 41.4 $ 48.0 $ 89.4 $ 438.8 Performance guarantees 9.4 4.5 13.9 32.4 Derivative instruments considered to be guarantees 4.1 3.6 7.7 569.2 Loans sold with recourse 0.3 0.3 76.6 Securities lending indemnifications(1) 64.5 64.5 Credit card merchant processing(1) 59.7 59.7 Custody indemnifications and other 33.5 33.5 121.4 Total $ 179.1 $ 89.9 $ 269.0 $ 1,238.4 (1) The carrying values of guarantees of collections of contractual cash flows, securities lending indemnifications and credit card mercha |
CONTINGENCIES
CONTINGENCIES | |
3 Months Ended
Mar. 31, 2010 | |
CONTINGENCIES | |
CONTINGENCIES | 20.CONTINGENCIES In accordance with ASC 450 (formerly SFAS5), Citigroup establishes accruals for litigation and regulatory matters when those matters present loss contingencies that both are probable and can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. In view of the inherent unpredictability of litigation and regulatory matters, particularly where the damages sought are substantial or indeterminate, the investigations or proceedings are in the early stages, or the matters involve novel legal theories or a large number of parties, Citigroup cannot state with certainty the timing or ultimate resolution of litigations and regulatory matters, and the actual costs of resolving litigations and regulatory matters may be substantially higher or lower than the amounts accrued for those matters. Subject to the foregoing, it is the opinion of Citigroup's management, based on current knowledge and after taking into account available insurance coverage and its current accruals, that the eventual outcome of such matters would not be likely to have a material adverse effect on the consolidated financial condition of Citi. Nonetheless, given the substantial or indeterminate amounts sought in certain of these matters, and the inherent unpredictability of such matters, an adverse outcome in certain of these matters could, from time to time, have a material adverse effect on Citi's consolidated results of operations or cash flows in particular quarterly or annual periods. |
CITIBANK, N.A. STOCKHOLDER'S EQ
CITIBANK, N.A. STOCKHOLDER'S EQUITY | |
3 Months Ended
Mar. 31, 2010 | |
CITIBANK, N.A. STOCKHOLDER'S EQUITY | |
CITIBANK, N.A. STOCKHOLDER'S EQUITY | 21.CITIBANK, N.A. STOCKHOLDER'S EQUITY Statement of Changes in Stockholder's Equity Citibank, N.A. and Subsidiaries Three Months Ended March31, In millions of dollars, except shares 2010 2009 Common stock ($20 par value) Balance, beginning of periodshares: 37,534,553 in 2010 and 2009 $ 751 $ 751 Balance, end of period $ 751 $ 751 Surplus Balance, beginning of period $ 107,923 $ 74,767 Capital contribution from parent company 346 27,451 Employee benefit plans 132 1 Balance, end of period $ 108,401 $ 102,219 Retained earnings Balance, beginning of period $ 19,457 $ 21,735 Adjustment to opening balance, net of taxes(1)(2) (411 ) 402 Adjusted balance, beginning of period $ 19,046 $ 22,137 Net income 2,472 1,470 Dividends(3) 9 Other(4) 117 Balance, end of period $ 21,527 $ 23,724 Accumulated other comprehensive income (loss) Balance, beginning of period $ (11,532 ) $ (15,895 ) Adjustment to opening balance, net of taxes(1) (402 ) Adjusted balance, beginning of period $ (11,532 ) $ (16,297 ) Net change in unrealized gains (losses) on investment securities available-for-sale, net of taxes 1,014 (125 ) Net change in foreign currency translation adjustment, net of taxes (786 ) (2,106 ) Net change in cash flow hedges, net of taxes 133 1,131 Pension liability adjustment, net of taxes (17 ) 24 Net change in accumulated other comprehensive income (loss) $ 344 $ (1,076 ) Balance, end of period $ (11,188 ) $ (17,373 ) Total Citibank stockholder's equity $ 119,491 $ 109,321 Noncontrolling interest Balance, beginning of period $ 1,294 $ 1,082 Initial origination of a noncontrolling interest (39 ) Transactions between noncontrolling interest and the related consolidating subsidiary (1 ) (130 ) Net income attributable to noncontrolling interest shareholders 22 8 Dividends paid to noncontrolling interest shareholders (1 ) (6 ) Accumulated other comprehensive incomeNet change in unrealized gains and losses on investment securities, net of tax 12 (3 ) Accumulated other comprehensive incomeNet change in FX translation adjustment, net of tax (5 ) (86 ) All other (12 ) (5 ) Net change in noncontrolling interest (24 ) (222 ) Balance, end of period $ 1,270 $ 860 Total equity $ 120,761 $ 110,181 Comprehensive income (loss) Net income (loss) before attribution of noncontrolling interest $ 2,494 $ 1,478 Net change in accumulated other comprehensive income (loss) 351 (1,165 ) Total comprehensive income (loss) $ 2,845 $ 313 Comprehensive income attributable to the noncontrolling interest 29 (81 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | |
3 Months Ended
Mar. 31, 2010 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 22.SUBSEQUENT EVENTS LQIF Acquisition In May 2010, Citigroup received regulatory approval and finalized its exercise of two call options increasing Citi's stake from 32.96% to 50% in LQIF, a wholly owned subsidiary of Quienco that controls Banco de Chile, and is accounted for under the equity method of accounting. The exercise price of the two options are approximately $510million and $519million, respectively, which were paid to Quienco. As a result of the transaction, Citi obtained a 30.9% voting interest and 20.4% economic interest in Banco de Chile and the right to appoint additional directors on both the LQIF and Banco de Chile boards, bringing the totals up to 3 (of 7)and 5 (of 11), respectively. The Company has evaluated subsequent events through May7, 2010, which is the date its Consolidated Financial Statements were issued. |
CONDENSED CONSOLIDATING FINANCI
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS SCHEDULES | |
3 Months Ended
Mar. 31, 2010 | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS SCHEDULES | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS SCHEDULES | 23.CONDENSED CONSOLIDATING FINANCIAL STATEMENTS SCHEDULES These condensed Consolidating Financial Statements schedules are presented for purposes of additional analysis but should be considered in relation to the Consolidated Financial Statements of Citigroup taken as a whole. Citigroup Parent Company The holding company, CitigroupInc. Citigroup Global Markets HoldingsInc. (CGMHI) Citigroup guarantees various debt obligations of CGMHI as well as all of the outstanding debt obligations under CGMHI's publicly issued debt. Citigroup FundingInc. (CFI) CFI is a first-tier subsidiary of Citigroup, which issues commercial paper, medium-term notes and structured equity-linked and credit-linked notes, all of which are guaranteed by Citigroup. CitiFinancial Credit Company (CCC) An indirect wholly owned subsidiary of Citigroup. CCC is a wholly owned subsidiary of Associates. Citigroup has issued a full and unconditional guarantee of the outstanding indebtedness of CCC. Associates First Capital Corporation (Associates) A wholly owned subsidiary of Citigroup. Citigroup has issued a full and unconditional guarantee of the outstanding long-term debt securities and commercial paper of Associates. In addition, Citigroup guaranteed various debt obligations of Citigroup Finance CanadaInc. (CFCI), a wholly owned subsidiary of Associates. CFCI continues to issue debt in the Canadian market supported by a Citigroup guarantee. Associates is the immediate parent company of CCC. Other Citigroup Subsidiaries Includes all other subsidiaries of Citigroup, intercompany eliminations, and income/loss from discontinued operations. Consolidating Adjustments Includes Citigroup parent company elimination of distributed and undistributed income of subsidiaries, investment in subsidiaries and the elimination of CCC, which is included in the Associates column. Condensed Consolidating Statements of Income Three Months Ended March31, 2010 In millions of dollars Citigroup parent company CGMHI CFI CCC Associates Other Citigroup subsidiaries, eliminations and income from discontinued operations Consolidating adjustments Citigroup consolidated Revenues Dividends from subsidiary banks and bank holding companies $ 2,313 $ $ $ $ $ $ (2,313 ) $ Interest revenue 75 1,490 1,399 1,606 17,681 (1,399 ) 20,852 Interest revenueintercompany 508 565 824 20 96 (1,993 ) (20 ) Interest expense 2,188 522 799 24 94 2,688 (24 ) 6,291 Interest expenseintercompany (199 ) 666 (282 ) 517 308 (493 ) (517 ) Net interest revenue $ (1,406 ) $ 867 $ 307 $ 878 $ 1,300 $ 13,493 (878 ) $ 14,561 Commissions and fees $ $ 1,287 $ $ 11 $ 33 $ 2,440 $ (11 ) $ 3,760 Commissions and feesintercompany 58 40 44 (102 ) (40 ) Principal transactions (117 ) |
Document and Entity Information
Document and Entity Information | ||
3 Months Ended
Mar. 31, 2010 | Apr. 30, 2010
| |
Document and Entity Information | ||
Entity Registrant Name | CITIGROUP INC | |
Entity Central Index Key | 0000831001 | |
Document Type | 10-Q | |
Document Period End Date | 2010-03-31 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 28,979,879,336 | |
Document Fiscal Year Focus | 2,010 | |
Document Fiscal Period Focus | Q1 |