U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 16, 2001
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Citigroup Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-9924 52-1568099
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
399 Park Avenue, New York, New York 10043
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(Address of principal executive offices) (Zip Code)
(212) 559-1000
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(Registrant's telephone number, including area code)
Citigroup Inc.
Current Report on Form 8-K
Item 5. Other Events.
On April 16, 2001, Citigroup Inc. reported core income for the first quarter
ended March 31, 2001, of $3.66 billion, a 7% decrease from the results recorded
in the first quarter of 2000, which included exceptionally strong Investment
Activities income. Excluding Investment Activities, core income increased 7%
from the prior year first quarter. Income in the first quarter of 2001, prior to
the cumulative effect of SFAS 133, was $3.58 billion, or $0.70 per share, fully
diluted, reflecting an $80 million after-tax charge for severance and related
costs associated with a reduction of staffing primarily in the Corporate
businesses. Net income was $3.54 billion, or $0.69 per share, fully diluted,
after a $42 million after-tax charge resulting from the adoption of SFAS 133,
Accounting for Derivative Instruments and Hedging Activities.
During the first quarter:
o Revenues rose 6% to $21.0 billion; excluding Investment Activities,
revenues grew 11%;
o Each of Citigroup's major business segments generated double-digit
revenue growth and achieved record revenues;
o Citigroup generated a 22.5% return on equity;
o Total equity (including trust preferred securities) increased to
$73.6 billion, as of 3/31/01;
o The Corporate and Investment Bank achieved significant market share
gains in the quarter;
o The businesses of Associates First Capital continued to be
successfully integrated into Citigroup's operations.
"This is precisely the kind of market that demonstrates the power of our
franchise," said Sanford I. Weill, Chairman and Chief Executive Officer of
Citigroup. "The strength and diversity of our earnings by business, geography,
and customer helped to deliver a strong bottom line in a period of market
uncertainty. We were exceptionally pleased with the growth in our consumer,
emerging markets, private banking and insurance franchises, which helped us
achieve solid results despite the challenging markets. We are also excited by
the ability of our Corporate business to produce solid results in a difficult
market and to continue to increase its market share. One of our key priorities
is to be the low cost provider in each of our businesses and, given the recent
changes in economic conditions, we are focused on making certain that the cost
structures of each of our businesses are appropriate for the current market
environment. This commitment was reflected in the severance provision we took
this quarter."
GLOBAL CONSUMER
1ST QUARTER CORE INCOME: $1.78 BILLION, UP 18% FROM $1.51 BILLION
REVENUES UP 10% TO $10.5 BILLION
Citigroup's Global Consumer businesses increased core income by 18% to $1.78
billion in the first quarter, led by continued strength in the company's U.S.
banking and lending businesses, particularly in U.S. Cards, as well as growth in
the company's businesses in Japan. Revenues rose 10%, to $10.5 billion, as
strong loan and deposit volume growth offset slower investment sales, while
expense growth was held to 3%. Credit costs rose 12% or $204 million, primarily
in the U.S., driven by increased volumes as well as the impact of the slower
economic environment. During the quarter, Citigroup took steps to enhance its
position in the New York metropolitan retail banking market place with the
announcement that it will acquire European American Bank. Citigroup has
continued to expand its key products globally, as its Global Cards business grew
to over 104 million card accounts in 46 countries, generating income of $598
million in the first quarter, up 25%. The Global Consumer Finance business
earned $394 million in the quarter, rising 28% on the strength of 19% revenue
growth.
o Core income from BANKING/LENDING rose 21% to $922 million led by NORTH
AMERICAN CARDS, where income growth of 23% was driven by an expansion in the
net interest margin of 77 basis points from the prior quarter, and
receivables growth of 17% over the prior year. Income growth of 24% at
CITIBANKING NORTH AMERICA reflected 10% deposit growth and stable margins,
offset by lower investment product fees. MORTGAGE BANKING income growth of
17% reflected strong origination volume growth in mortgages, partly offset by
spread compression for student loans. Income growth at CITIFINANCIAL of 18%
was driven by 17% growth in receivables over the prior year.
o INSURANCE core income increased 11% to a record $422 million. PRIMERICA'S
core income rose 5% as revenue growth of 4% was partly offset by continued
expenditures related to international expansion. Production of SMART/SAFE
loans was up 41%, and face amount of life insurance issued rose 9%, although
mutual fund sales declined 17%. TRAVELERS LIFE AND ANNUITY income grew by
12%, driven by strong business volumes and higher net investment income.
Sales momentum increased for both the group annuities and life insurance.
TRAVELERS PROPERTY CASUALTY'S PERSONAL LINES income growth of 18% resulted
from lower catastrophe losses and the incremental earnings from the minority
interest buyback in the second quarter of 2000, partly offset by continued
higher loss cost trends, as well as less prior year favorable reserve
development. Net written premium growth, excluding SECURE, was 11%.
o INTERNATIONAL core income increased 9% to $515 million. In the developed
markets of WESTERN EUROPE AND JAPAN (which include the consumer finance and
card operations of the former Associates), income rose 25% to $315 million.
Income growth for Western Europe was 14%. Japan's income growth of 32%
reflected the substantial volume growth in the core deposit and consumer
finance businesses as well as the contribution of the Diners Club and Unimat
acquisitions in that market. Income for EMERGING MARKETS consumer declined
10% to $200 million, largely reflecting the 52% decrease in income in Latin
America as a result of the negotiated settlement with the Mexican government
relating to Confia, partly offset by lower credit costs in the region. Income
for Asia (excluding Japan) rose 6% (or 19% excluding the negative impact of
foreign currency translation) as lower investment products revenues were
offset by a continued improvement in credit costs and by a gain on the
contribution of Citigroup's insurance operations in Taiwan to its joint
venture with Fubon. CEEMEA income growth of 27% resulted from increased loan
and deposit volume across the region, partly offset by investments in new
initiatives.
GLOBAL CORPORATE
1ST QUARTER CORE INCOME: $1.75 BILLION, DOWN 7% FROM $1.89 BILLION
REVENUES UP 11% TO $9.5 BILLION
Income for the Global Corporate business of Citigroup declined 7% from the prior
year's record results, but increased 38% from the fourth quarter of 2000. During
the quarter the business took steps to align its cost structure with current
market conditions, taking a $66 million charge for severance and related costs
associated with a reduction in headcount. Net revenues were up 11% from one year
ago, on broad-based market share gains, and Salomon Smith Barney remained the #2
Global Underwriter. During the quarter, the Corporate and Investment Bank led
the industry in debt issuance, ranking #1 in U.S. and global investment grade
corporate debt, and U.S. and global high yield. The firm also reinforced its
leadership position in Japanese equities through its joint venture, Nikko
Salomon Smith Barney, with a 65% market share. The continued success of Schroder
Salomon Smith Barney was evidenced by substantial market share increases in
Europe and the firm's #2 ranking in European fixed income, versus #4 one year
ago. Among many notable transactions in the quarter was SSB's role as joint
book and joint lead manager on France Telecom's $16.4 billion corporate bond
issue, the largest in history. In the 78 countries where Citibank operates its
Emerging Markets corporate bank, the company continues to increase market share
and garner recognition, as GLOBAL FINANCE MAGAZINE just named Citibank "Best
Bank in the World for Emerging Markets."
o THE CORPORATE AND INVESTMENT BANK reported core income of $1.01 billion,
declining 21% (15% excluding the equity earnings of Nikko Securities) from
the very strong results achieved in the prior year quarter, but increasing
74% from the fourth quarter of 2000. Net revenues of $5.66 billion increased
7% over the year ago quarter and 21% over the fourth quarter. Expense growth
of 22% over last year was attributable to the addition of Schroders and
Copelco (both acquired in the second quarter of 2000) and increased
compensation costs and investment spending to expand product platforms.
Compensation as a percentage of net revenues was comparable to the levels of
the full year 2000, but higher than the year ago quarter. The business was
also impacted by a $140 million increase in credit costs, to $230 million in
the quarter, which included increased losses in CitiCapital. Income also
reflected an $82 million year-over-year decline in the contribution from
Nikko Securities (in which Citigroup has a 20.7% ownership position) due to
the weak retail brokerage environment in Japan.
Investment Banking revenue reached a record in the quarter, despite the
decline in primary equity issuance, as a result of the completion of several
major transactions, including the AOL/Time Warner merger and record levels of
fixed income underwriting. Revenue for Global Fixed Income was also a record
in the quarter driven by record new issuance and a substantial increase in
market share, including a 24% market share for U.S. investment grade debt.
Record revenue for Global Equities reflected market share gains and
particularly strong performance in Japan
and the U.S. The Nikko Salomon Smith Barney joint venture reported its
best quarter since inception.
Private client income fell 47% from the first quarter of 2000 and 8% from the
fourth quarter of 2000, reflecting continued market volatility. Revenues
declined 19% over the prior year period and 5% from the preceding quarter.
While transactional revenues were down substantially from last year,
fee-based revenues increased 5%, reflecting the Private Client group's
continued emphasis on fee-based services. Assets under fee-based management
remained stable at $186 billion. As a result of lower transactional activity,
annualized gross production per Financial Consultant declined 27% to
$439,000. During the quarter, the acquisition of Geneva Companies was
completed, further expanding Private Client's leadership in serving owners of
closely-held companies. Salomon Smith Barney also successfully launched its
FDIC-insured bank deposit program, with bank deposits reaching $17 billion at
quarter end.
The contribution from CitiCapital fell 67% from the first quarter as a result
of higher loss rates, primarily stemming from the transportation portfolio.
o EMERGING MARKETS CORPORATE BANKING AND TRANSACTION SERVICES reported a 26%
increase in core income, to a record $454 million, driven by strong
trading-related revenues in all regions, double digit revenue growth in
transaction services, as well as the contribution of Bank Handlowy acquired
in 2000. Expenses increased 19% (or 15% excluding Bank Handlowy), which
reflected the acquisition as well as infrastructure investments in all
regions. Credit costs continued to improve in all regions, declining by $40
million over the prior year.
o TRAVELERS PROPERTY CASUALTY COMMERCIAL LINES core income growth of 13%
reflected the continued increases in pricing across all segments, as well as
the minority interest buyback in the second quarter of 2000, partly offset by
lower net investment income, higher loss cost trends and catastrophe losses
related to the Seattle earthquake. Net written premiums increased 28%, which
resulted from strong production in all channels as well as the impact of
Reliance Surety and the purchase of renewal rights for Reliance's middle
market business and Frontier specialty business.
GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING
1ST QUARTER CORE INCOME: $193 MILLION, UP 11% FROM $174 MILLION
REVENUES UP 14% TO $906 MILLION
Record core income for Citigroup's Global Investment Management and Private
Banking Group reflected continued momentum in the Private Bank, strong net asset
flows in Asset Management and expansion of activities in the retirement services
market. The group recorded strong share gains through proprietary distribution
channels throughout Citigroup, building market share in most categories.
Revenues for the quarter rose 14%, led by the increased ownership stakes in
Garante and Siembra in Retirement Services and improved revenues in the Private
Bank.
o ASSET MANAGEMENT core income (including Retirement Services) was $96 million,
up 2% from the prior year quarter, reflecting strong net asset flows which
offset the impact of negative market activity on the group's assets under
management. Revenues rose 19%, primarily due to the inclusion of pension fund
acquisitions in Latin America completed over the past year. The 29% increase
in expenses was
attributable to the continued development of the group's sales and marketing
capacity as well as its research, quantitative and technology platforms, the
build-out of which is approximately 85% complete. Assets under management
rose 1% to $393 billion.
The group's long term mutual funds and managed account products sold through
the Salomon Smith Barney retail channel rose 66% to $7.7 billion,
representing 58% of this channel, and net flows were $4.8 billion in the
quarter. The group's share of the Primerica channel rose to 59%, with $480
million in Citigroup Asset Management mutual and money funds sold. Sales
through Citibank's global retail banking network reached $3.3 billion in the
quarter. Share of the U.S. branch channel reached 75%, following the
successful launch of the Smith Barney mutual funds in the third quarter of
2000. Institutional client assets rose to $156 billion, including $6 billion
in assets raised from Corporate customers in the fourth quarter.
o Core income for the PRIVATE BANK increased 21% to a record $97 million.
Revenue growth of 7%, as compared to a very strong prior year quarter, was
driven by higher fees on investment products, partly offset by a 10% increase
in expenses, primarily related to sales infrastructure. A significant decline
in credit costs also contributed to income growth. Client business volumes
rose 1% to $146 billion.
CORPORATE/OTHER, E-CITI, AND INVESTMENT ACTIVITIES
The loss from CORPORATE/OTHER decreased over the first quarter of 2000, as a
result of improved treasury results and the absence of Year 2000-related
expenses which were included in the prior year quarter. Expenses in E-CITI
continued to decline, at $7 million in the quarter. Income from INVESTMENT
ACTIVITIES was $136 million, a sharp reduction from the exceptionally strong
results of the first quarter of 2000, and included realized gains in the
company's insurance portfolio offset by negative mark-to-market adjustments in
the company's venture capital portfolio.
# # #
FORWARD-LOOKING STATEMENTS
Certain of the statements contained herein that are not historical facts are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act. The Company's actual results may differ materially from
those included in the forward-looking statements. Forward-looking statements are
typically identified by words or phrases such as "believe," "expect,"
"anticipate," "intend," "estimate," "target," "may increase," "may fluctuate,"
"may result in," "are projected," and similar expressions. These forward-looking
statements involve risks and uncertainties including, but not limited to, the
following: general economic conditions, including the performance of financial
markets and interest rates; and Citigroup's ability to increase revenues and
market share during a difficult market.
# # #
A financial summary follows. Additional financial, statistical and
business-related information, as well as business and segment trends, is
included in the Financial Supplement.
FIRST QUARTER
CITIGROUP SEGMENT INCOME --------------------
(IN MILLIONS OF DOLLARS) 2001 2000 % CHANGE
- ----------------------------------------------------------------------------------------------
GLOBAL CONSUMER
Citibanking North America ............... $ 164 $ 132 24
Mortgage Banking ........................ 77 66 17
North America Cards ..................... 469 382 23
CitiFinancial ........................... 212 179 18
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Banking/Lending ........................... 922 759 21
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Travelers Life and Annuity .............. 210 187 12
Primerica Financial Services ............ 125 119 5
Personal Lines .......................... 87 74 18
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Insurance ................................. 422 380 11
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Western Europe .......................... 111 97 14
Japan ................................... 204 155 32
Emerging Markets Consumer Banking ....... 200 222 (10)
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Total International ....................... 515 474 9
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e-Consumer ................................ (39) (68) 43
Other Consumer ............................ (43) (39) (10)
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TOTAL GLOBAL CONSUMER ..................... 1,777 1,506 18
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GLOBAL CORPORATE
Corporate Finance ....................... 804 862 (7)
Private Client .......................... 191 359 (47)
CitiCapital ............................. 19 57 (67)
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Corporate and Investment Bank ............. 1,014 1,278 (21)
--------------------
Emerging Markets Corporate Banking
& Global Transaction Services .......... 454 361 26
Commercial Lines Insurance ................ 278 247 13
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TOTAL GLOBAL CORPORATE .................... 1,746 1,886 (7)
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GLOBAL INVESTMENT MANAGEMENT AND
PRIVATE BANKING
Citigroup Asset Management ................ 96 94 2
The Citigroup Private Bank ................ 97 80 21
TOTAL GLOBAL INVESTMENT MANAGEMENT --------------------
AND PRIVATE BANKING ....................... 193 174 11
--------------------
INVESTMENT ACTIVITIES ..................... 136 633 (79)
CORPORATE/OTHER ........................... (192) (260) 26
CORE INCOME ............................... 3,660 3,939 (7)
Restructuring and Merger Related
Items - After-Tax (A) ................... (80) (83) 4
--------------------
INCOME BEFORE CUMULATIVE EFFECT OF ADOPTING
SFAS NO.133 ............................. 3,580 3,856 (7)
--------------------
Effect of Adopting SFAS No. 133 ........... (42) - NM
--------------------
NET INCOME ................................ $3,538 $ 3,856 (8)
==============================================================================================
DILUTED EARNINGS PER SHARE:
CORE INCOME ............................... $ 0.71 $ 0.76 (7)
INCOME BEFORE CUMULATIVE EFFECT OF
ADOPTING SFAS NO.133 .................... $ 0.70 $ 0.75 (7)
NET INCOME ................................ $ 0.69 $ 0.75 (8)
- ----------------------------------------------------------------------------------------------
Core Diluted Earnings Per Share Excluding
Goodwill Amortization...................... $ 0.73 $ 0.78 (6)
(A) Restructuring-related items in the 2001 first quarter includes $66
million of severance and other costs associated with the reduction of
staff primarily at the Corporate and Investment Bank, and $14 million of
accelerated depreciation. Restructuring-related items in the 2000 first
quarter includes $71 million related to the discontinuation of the loan
origination operations of Associates and $12 million of accelerated
depreciation.
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FIRST QUARTER
CORE INCOME SUPPLEMENTAL DISCLOSURE ------------------
(IN MILLIONS OF DOLLARS) 2001 2000 % Change
- ------------------------------------------------------------------------------------------------------------
CITIGROUP EMERGING MARKETS (EXCLUDING INVESTMENT ACTIVITIES)
ASIA
Consumer Banking .................................................... $ 150 $ 140 7
Corporate ........................................................... 159 148 7
Asset Management & Private Banking .................................. 28 21 33
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TOTAL ASIA ............................................................ $ 337 $ 309 9
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LATIN AMERICA
Consumer Banking .................................................... $ 34 $ 67 (49)
Corporate ........................................................... 184 173 6
Asset Management & Private Banking .................................. 38 29 31
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TOTAL LATIN AMERICA ................................................... $ 256 $ 269 (5)
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CENTRAL AND EASTERN EUROPE, MIDDLE EAST AND AFRICA
Consumer Banking .................................................... $ 18 $ 15 20
Corporate ........................................................... 158 93 70
Asset Management & Private Banking .................................. 5 7 (29)
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TOTAL CENTRAL AND EASTERN EUROPE, MIDDLE EAST AND AFRICA $ 181 $ 115 57
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Other ................................................................. (17) 7 NM
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TOTAL EMERGING MARKETS ................................................ $ 757 $ 700 8
===========================================================================================================
GLOBAL WEALTH MANAGEMENT
Private Client ........................................................ $ 191 $ 359 (47)
Citigroup Asset Management ............................................ 96 94 2
The Citigroup Private Bank ............................................ 97 80 21
Global Consumer Investment, Life Insurance
and Annuity Products ................................................ 349 349 -
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Total Global Wealth Management ........................................ $ 733 $ 882 (17)
===========================================================================================================
GLOBAL CARDS
North America ......................................................... $ 469 $ 382 23
International ......................................................... 129 96 34
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TOTAL GLOBAL CARDS .................................................... $ 598 $ 478 25
===========================================================================================================
GLOBAL CONSUMER FINANCE
North America ......................................................... $ 212 $ 179 18
International ......................................................... 182 130 40
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TOTAL GLOBAL CONSUMER FINANCE ......................................... $ 394 $ 309 28
===========================================================================================================
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CITIGROUP - QUARTERLY FINANCIAL DATA SUPPLEMENT
- --------------------------------------------------------------------------------------------------------------------
PAGE NUMBER
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CITIGROUP CONSOLIDATED
Financial Summary 1
Segment Net Revenues 2
Segment Core Income 3
Segment Detail GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America 4
Mortgage Banking 5
North America Cards 6
CitiFinancial 7
INSURANCE
Travelers Life and Annuity 8
Primerica Financial Services 9
Personal Lines 10
INTERNATIONAL
Western Europe 11
Japan 12
Asia 13
Latin America 14
Central & Eastern Europe, Middle East & Africa 15
OTHER CONSUMER 16
GLOBAL CORPORATE:
Corporate and Investment Bank 17
Salomon Smith Barney 18
Emerging Markets Corporate Banking and Global Transaction Services 19
Commercial Lines 20
GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING:
Citigroup Asset Management 21
The Citigroup Private Bank 22
INVESTMENT ACTIVITIES 23
CITIGROUP SUPPLEMENTAL DETAIL
Consolidated Statement of Income 24
Earnings Analysis - Managed Basis 25
Consumer Loan Delinquency Amounts, Net Credit Losses and Ratios 26
Details of Credit Loss Experience 27
Cash Basis and Renegotiated Loans, Other Real Estate Owned and Assets Pending Disposition 28
Insurance Investment Portfolio 29
Global Cards 30
Global Consumer Finance 31
Global Corporate - Supplemental Product and Regional Results 32
Citigroup Emerging Markets 33
Global Wealth Management 34
CITICORP SUPPLEMENTAL DATA 35
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CITIGROUP -- FINANCIAL SUMMARY
(In millions of dollars, except per share amounts)
CITIGROUP, THE MOST GLOBAL FINANCIAL SERVICES COMPANY, PROVIDES SOME 120 MILLION
CONSUMERS, CORPORATIONS, GOVERNMENTS AND INSTITUTIONS IN OVER 100 COUNTRIES WITH
A BROAD RANGE OF FINANCIAL PRODUCTS AND SERVICES.
- ----------------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q
2000 2000 2000 2000
-------- --------- --------- -----------
Core Income $ 3,939 $ 3,341 $ 3,529 $ 3,331
Restructuring and Merger-Related Items (83) (2) (45) (491)
Cumulative Effect of Accounting Change -- -- -- --
------- ------- ------- ---------
NET INCOME $ 3,856 $ 3,339 $ 3,484 $ 2,840
======= ======= ======= =========
BASIC EARNINGS PER SHARE:
CORE INCOME $ 0.79 $ 0.67 $ 0.70 $ 0.66
======= ======= ======= =========
NET INCOME $ 0.77 $ 0.67 $ 0.69 $ 0.57
======= ======= ======= =========
WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO BASIC EPS 4,975.5 4,977.1 4,978.7 4,976.5
======= ======= ======= =========
PREFERRED DIVIDENDS - BASIC $ 30 $ 29 $ 29 $ 28
======= ======= ======= =========
DILUTED EARNINGS PER SHARE:
CORE INCOME $ 0.76 $ 0.65 $ 0.68 $ 0.65
======= ======= ======= =========
NET INCOME $ 0.75 $ 0.65 $ 0.67 $ 0.55
======= ======= ======= =========
CORE DILUTED EARNINGS PER SHARE EXCLUDING
GOODWILL AMORTIZATION $ 0.78 $ 0.67 $ 0.70 $ 0.67
======= ======= ======= =========
ADJUSTED WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO DILUTED EPS 5,115.4 5,121.6 5,134.8 5,116.8
======= ======= ======= =========
PREFERRED DIVIDENDS - DILUTED $ 30 $ 29 $ 29 $ 28
======= ======= ======= =========
COMMON SHARES OUTSTANDING, AT PERIOD END 5,028.4 5,027.2 5,026.2 5,022.2
======= ======= ======= =========
TIER 1 CAPITAL RATIO 9.00% 8.03% 7.76% 8.38%
======= ======= ======= =========
TOTAL CAPITAL RATIO 11.47% 10.34% 9.96% 11.23%
======= ======= ======= =========
LEVERAGE RATIO 6.60% 5.99% 5.91% 5.97%
======= ======= ======= =========
TOTAL ASSETS, AT PERIOD END (IN BILLIONS) $ 821.0 $ 877.2 $ 896.6 $ 902.2
======= ======= ======= =========
STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS) $ 59.9 $ 61.4 $ 63.7 $ 66.2
======= ======= ======= =========
STOCKHOLDERS' EQUITY AND TRUST SECURITIES, AT PERIOD END (IN BILLIONS) $ 64.8 $ 66.3 $ 68.6 $ 71.1
======= ======= ======= =========
BOOK VALUE PER SHARE, AT PERIOD END $ 11.57 $ 11.86 $ 12.33 $ 12.84
======= ======= ======= =========
RETURN ON COMMON EQUITY (NET INCOME) 26.7% 22.9% 22.7% 17.9%
======= ======= ======= =========
RETURN ON COMMON EQUITY (CORE INCOME) 27.3% 22.9% 22.9% 21.0%
======= ======= ======= =========
- -------------------------------------------------------------------------------------------------------------------------
1Q 2001 VS.
1Q 1Q 2000 INCREASE/
2001 (DECREASE)
------------- ----------------------------
Core Income $ 3,660 (7%)
Restructuring and Merger-Related Items (80)
Cumulative Effect of Accounting Change (42)
-------------
NET INCOME $ 3,538 (8%)
=============
BASIC EARNINGS PER SHARE:
CORE INCOME $ 0.73 (8%)
=============
NET INCOME $ 0.70 (9%)
=============
WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO BASIC EPS 4,984.7
=============
PREFERRED DIVIDENDS - BASIC $ 28
=============
DILUTED EARNINGS PER SHARE:
CORE INCOME $ 0.71 (7%)
=============
NET INCOME $ 0.69 (8%)
=============
CORE DILUTED EARNINGS PER SHARE EXCLUDING
GOODWILL AMORTIZATION $ 0.73 (6%)
=============
ADJUSTED WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO DILUTED EPS 5,110.0
=============
PREFERRED DIVIDENDS - DILUTED $ 28
=============
COMMON SHARES OUTSTANDING, AT PERIOD END 5,033.7
=============
TIER 1 CAPITAL RATIO 8.5% *
=============
TOTAL CAPITAL RATIO 11.3% *
=============
LEVERAGE RATIO 6.1% *
=============
TOTAL ASSETS, AT PERIOD END (IN BILLIONS) $ 946 *
=============
STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS) $ 68.7 *
=============
STOCKHOLDERS' EQUITY AND TRUST SECURITIES, AT PERIOD END (IN BILLIONS) $ 73.6 *
=============
BOOK VALUE PER SHARE, AT PERIOD END $ 13.29 *
=============
RETURN ON COMMON EQUITY (NET INCOME) 21.7% *
=============
RETURN ON COMMON EQUITY (CORE INCOME) 22.5% *
=============
* Preliminary
- -------------------------------------------------------------------------------------------------------------------------
Page 1
CITIGROUP -- SEGMENT NET REVENUES
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q
2000 2000 2000 2000 2001
---------- --------- --------- -------- --------
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America $ 579 $ 567 $ 567 $ 564 $ 613
Mortgage Banking 223 226 225 238 242
North America Cards 2,551 2,557 2,737 2,911 3,004
CitiFinancial 1,222 1,269 1,262 1,318 1,339
-------- -------- -------- -------- --------
Total Banking / Lending 4,575 4,619 4,791 5,031 5,198
Insurance
Travelers Life and Annuity 1,010 983 899 999 1,130
Primerica Financial Services 472 479 474 490 490
Personal Lines 1,034 1,050 1,058 1,088 1,080
-------- -------- -------- -------- --------
Total Insurance 2,516 2,512 2,431 2,577 2,700
International
Western Europe 618 600 579 591 622
Japan 593 664 714 816 826
Asia 539 519 521 517 540
Latin America 513 466 436 526 471
Central & Eastern Europe, Middle East and Africa 100 106 110 117 131
-------- -------- -------- -------- --------
Total Emerging Markets Consumer Banking 1,152 1,091 1,067 1,160 1,142
-------- -------- -------- -------- --------
Total International 2,363 2,355 2,360 2,567 2,590
e-Consumer 31 28 76 35 47
Other 33 (21) 94 33 (60)
-------- -------- -------- -------- --------
Total Global Consumer 9,518 9,493 9,752 10,243 10,475
-------- -------- -------- -------- --------
Global Corporate:
Corporate Finance 3,086 2,820 2,925 2,752 3,800
Private Client 1,916 1,690 1,681 1,628 1,547
CitiCapital 275 288 301 302 316
-------- -------- -------- -------- --------
Corporate and Investment Bank 5,277 4,798 4,907 4,682 5,663
Emerging Markets Corporate Banking and Global Transaction Services 1,600 1,670 1,669 1,720 1,896
Commercial Lines 1,719 1,788 1,928 2,062 1,970
-------- -------- -------- -------- --------
Total Global Corporate 8,596 8,256 8,504 8,464 9,529
-------- -------- -------- -------- --------
Global Investment Management & Private Banking:
Citigroup Asset Management 436 479 490 486 517
The Citigroup Private Bank 362 338 337 369 389
-------- -------- -------- -------- --------
Total Global Investment Management & Private Banking 798 817 827 855 906
-------- -------- -------- -------- --------
Corporate / Other (89) (159) (170) (256) (97)
Investment Activities 1,016 387 495 347 234
- -----------------------------------------------------------------------------------------------------------------------------
Total Adjusted Net Revenues $ 19,839 $ 18,794 $ 19,408 $ 19,653 $ 21,047
- -----------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION:
Citigroup Emerging Markets - Excl. Investment Activities $ 2,838 $ 2,815 $ 2,771 $ 2,897 $ 3,103
Global Wealth Management $ 4,384 $ 4,127 $ 4,039 $ 4,099 $ 4,209
Global Cards $ 3,112 $ 3,157 $ 3,322 $ 3,515 $ 3,598
Global Consumer Finance $ 1,843 $ 1,937 $ 1,967 $ 2,138 $ 2,199
NM Not Meaningful
Reclassified to conform to the current period's presentation
1Q 2001 vs.
1Q 2000 Increase/
(Decrease)
-----------------
Global Consumer:
Banking / Lending
Citibanking North America 6%
Mortgage Banking 9%
North America Cards 18%
CitiFinancial 10%
Total Banking / Lending 14%
Insurance
Travelers Life and Annuity 12%
Primerica Financial Services 4%
Personal Lines 4%
Total Insurance 7%
International
Western Europe 1%
Japan 39%
Asia --
Latin America (8%)
Central & Eastern Europe, Middle East and Africa 31%
Total Emerging Markets Consumer Banking (1%)
Total International 10%
e-Consumer 52
Other NM
Total Global Consumer 10%
Global Corporate:
Corporate Finance 23%
Private Client (19%)
CitiCapital 15%
Corporate and Investment Bank 7%
Emerging Markets Corporate Banking and Global Transaction Services 19%
Commercial Lines 15%
Total Global Corporate 11%
Global Investment Management & Private Banking:
Citigroup Asset Management 19%
The Citigroup Private Bank 7%
Total Global Investment Management & Private Banking 14%
Corporate / Other (9%)
Investment Activities (77%)
Total Adjusted Net Revenues 6%
SUPPLEMENTAL INFORMATION:
Citigroup Emerging Markets - Excl. Investment Activities 9%
Global Wealth Management (4%)
Global Cards 16%
Global Consumer Finance 19%
NM Not Meaningful
Reclassified to conform to the current period's presentation
Page 2
CITIGROUP -- SEGMENT CORE INCOME
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q
2000 2000 2000 2000 2001
---------- ---------- ---------- -------- ----------
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America $ 132 $ 137 $ 138 $ 143 $ 164
Mortgage Banking 66 71 77 84 77
North America Cards 382 390 494 529 469
CitiFinancial 179 205 213 213 212
------- ------- ------- ------- -------
Total Banking / Lending 759 803 922 969 922
INSURANCE
Travelers Life and Annuity 187 202 179 209 210
Primerica Financial Services 119 125 124 124 125
Personal Lines 74 82 68 83 87
------- ------- ------- ------- -------
Total Insurance 380 409 371 416 422
INTERNATIONAL
Western Europe 97 92 95 108 111
Japan 155 178 209 207 204
Asia 141 140 140 132 149
Latin America 66 41 32 69 32
Central & Eastern Europe, Middle East and Africa 15 16 16 14 19
------- ------- ------- ------- -------
Total Emerging Markets Consumer Banking 222 197 188 215 200
------- ------- ------- ------- -------
Total International 474 467 492 530 515
E-CONSUMER (68) (46) (43) (46) (39)
OTHER (39) (36) (9) 17 (43)
------- ------- ------- ------- -------
TOTAL GLOBAL CONSUMER 1,506 1,597 1,733 1,886 1,777
------- ------- ------- ------- -------
GLOBAL CORPORATE:
Corporate Finance 862 643 618 523 804
Private Client 359 254 250 207 191
CitiCapital 57 9 9 (146) 19
------- ------- ------- ------- -------
Corporate and Investment Bank 1,278 906 877 584 1,014
Emerging Markets Corporate Banking and Global Transaction Services 361 371 397 424 454
Commercial Lines 247 272 317 257 278
------- ------- ------- ------- -------
TOTAL GLOBAL CORPORATE 1,886 1,549 1,591 1,265 1,746
------- ------- ------- ------- -------
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
Citigroup Asset Management 94 92 95 78 96
The Citigroup Private Bank 80 79 80 85 97
------- ------- ------- ------- -------
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 174 171 175 163 193
------- ------- ------- ------- -------
CORPORATE / OTHER (260) (210) (262) (186) (192)
INVESTMENT ACTIVITIES 633 234 292 203 136
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL CORE INCOME $ 3,939 $ 3,341 $ 3,529 $ 3,331 $ 3,660
- ----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION:
CITIGROUP EMERGING MARKETS - EXCL. INVESTMENT ACTIVITIES $ 700 $ 630 $ 642 $ 686 $ 757
GLOBAL WEALTH MANAGEMENT $ 882 $ 772 $ 756 $ 717 $ 733
GLOBAL CARDS $ 478 $ 516 $ 607 $ 653 $ 598
GLOBAL CONSUMER FINANCE $ 309 $ 359 $ 379 $ 387 $ 394
1Q 2001 VS.
1Q 2000 INCREASE/
(DECREASE)
-------------------
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America 24%
Mortgage Banking 17%
North America Cards 23%
CitiFinancial 18%
Total Banking / Lending 21%
INSURANCE
Travelers Life and Annuity 12%
Primerica Financial Services 5%
Personal Lines 18%
Total Insurance 11%
INTERNATIONAL
Western Europe 14%
Japan 32%
Asia 6%
Latin America (52%)
Central & Eastern Europe, Middle East and Africa 27%
Total Emerging Markets Consumer Banking (10%)
Total International 9%
E-CONSUMER 43%
OTHER (10%)
TOTAL GLOBAL CONSUMER 18%
GLOBAL CORPORATE:
Corporate Finance (7%)
Private Client (47%)
CitiCapital (67%)
Corporate and Investment Bank (21%)
Emerging Markets Corporate Banking and Global Transaction Services 26%
Commercial Lines 13%
TOTAL GLOBAL CORPORATE (7%)
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
Citigroup Asset Management 2%
The Citigroup Private Bank 21
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 11%
CORPORATE / OTHER 26%
INVESTMENT ACTIVITIES (79%)
TOTAL CORE INCOME (7%)
SUPPLEMENTAL INFORMATION:
CITIGROUP EMERGING MARKETS - EXCL. INVESTMENT ACTIVITIES 8%
GLOBAL WEALTH MANAGEMENT (17%)
GLOBAL CARDS 25%
GLOBAL CONSUMER FINANCE 28%
Reclassified to conform to the current period's presentation.
Page 3
GLOBAL CONSUMER - BANKING/LENDING
CITIBANKING NORTH AMERICA
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q
2000 2000 2000 2000 2001
------------- --------- --------- ---------- ---------
Total Revenues, Net of Interest Expense $ 579 $ 567 $ 567 $ 564 $ 613
Adjusted Operating Expenses 348 331 328 328 335
Provision for Loan Losses 9 7 7 6 7
------- ------- ------- ------- -------
Core Income Before Taxes 222 229 232 230 271
Income Taxes 90 92 94 87 107
------- ------- ------- ------- -------
Core Income $ 132 $ 137 $ 138 $ 143 $ 164
======= ======= ======= ======= =======
Average Assets (in billions of dollars) $ 9 $ 9 $ 9 $ 9 $ 9
======= ======= ======= ======= =======
Return on Assets 5.90% 6.12% 6.10% 6.32% 7.39%
======= ======= ======= ======= =======
Average Loans (in billions of dollars) $ 7.0 $ 7.0 $ 7.0 $ 7.0 $ 7.0
Average Customer Deposits (in billions of dollars) $ 43.6 $ 44.3 $ 44.8 $ 46.0 $ 48.0
EOP Accounts (in millions) 6.3 6.4 6.5 6.7 6.7
Non-Interest Revenue as a % of Total Revenues 27.2% 26.6% 26.7% 25.0% 22.6%
Net Credit Loss Ratio (1) 1.00% 0.88% 0.86% 0.90% .85%
Loans 90+Days Past Due:
In millions of dollars $ 48 $ 33 $ 33 $ 35 $ 41
% 0.68% 0.47% 0.46% 0.48% .59%
Proprietary Mutual Funds / UIT $ 373 $ 124 $ 280 $ 280 $ 331
Proprietary Money Market Funds 1,015 679 748 690 958
------- ------- ------- ------- -------
Total Proprietary Funds 1,388 803 1,028 970 1,289
Third Party Funds 947 599 426 346 420
------- ------- ------- ------- -------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $ 2,335 $ 1,402 $ 1,454 $ 1,316 $ 1,709
======= ======= ======= ======= =======
Variable Annuity Premiums & Deposits (in millions of dollars) $ 270 $ 330 $ 385 $ 381 $ 304
Branches 371 367 367 367 368
ATM-only locations 114 111 109 108
Proprietary ATMs 2,092 2,086 2,080 2,080 2,055
1Q 2001 VS.
1Q 2000 INCREASE/
(DECREASE)
------------------
Total Revenues, Net of Interest Expense 6%
Adjusted Operating Expenses (4%)
Provision for Loan Losses (22%)
Core Income Before Taxes 22%
Income Taxes 19%
Core Income 24%
Average Assets (in billions of dollars) --
Return on Assets
Average Loans (in billions of dollars) --
Average Customer Deposits (in billions of dollars) 10%
EOP Accounts (in millions) 6%
Non-Interest Revenue as a % of Total Revenues
Net Credit Loss Ratio (1)
Loans 90+Days Past Due:
In millions of dollars (15%)
%
Proprietary Mutual Funds / UIT (11%)
Proprietary Money Market Funds (6%)
Total Proprietary Funds (7%)
Third Party Funds (56%)
Mutual Fund / UIT Sales at NAV (in millions of dollars) (27%)
Variable Annuity Premiums & Deposits (in millions of dollars) 13%
Branches (1%)
ATM-only locations (6%)
Proprietary ATMs (2%)
(1) The 4Q00 net credit loss ratio includes a 10 basis point increase
related to the adoption of revised FFIEC write-off policies.
Reclassified to conform to the current period's presentation.
Page 4
GLOBAL CONSUMER - BANKING/LENDING
MORTGAGE BANKING (1)
(In millions of dollars)
1Q 2Q 3Q 4Q
2000 2000 2000 2000
------- -------- ---------- ---------
Total Revenues, Net of Interest Expense $ 223 $ 226 $ 225 $ 238
Adjusted Operating Expenses 99 102 92 101
Provision for Loan Losses 9 (1) 1 (7)
------- -------- ---------- ---------
Core Income Before Taxes and Minority Interest 115 125 132 144
Income Taxes 44 48 49 55
Minority Interest, Net of Tax 5 6 6 5
------- -------- --------- ---------
Core Income $ 66 $ 71 $ 77 $ 84
======= ======== ========= =========
Average Assets (in billions of dollars) $ 34 $ 37 $ 42 $ 45
======= ======== ========= =========
Return on Assets 0.78% 0.77% 0.73% 0.74%
======= ======== ========= =========
EOP ACCOUNTS OWNED AND SERVICED (IN MILLIONS):
Student Loans 2.8 3.0 3.3 3.5
Mortgages 0.7 0.9 0.9 0.9
Consumer Finance 0.1 0.1 0.1 0.1
------- -------- --------- ---------
Total 3.6 4.0 4.3 4.5
======= ======== ========= =========
TOTAL OWNED AND SERVICED AVERAGE LOANS (IN BILLION OF DOLLARS):
Mortgages (2) $ 20.1 $ 21.6 $ 23.7 $ 25.8
Student Loans 11.6 12.3 14.2 15.3
Consumer Finance 0.4 0.5 0.7 0.9
------- -------- --------- ---------
Average Loans - On Balance Sheet 32.1 34.4 38.6 42.0
Other Serviced Loans 54.1 59.9 61.8 62.6
------- -------- --------- ---------
Total $ 86.2 $ 94.3 $ 100.4 $ 104.6
======= ======== ========= =========
Mortgage Originations (in billions of dollars) $ 3.7 $ 5.1 $ 6.2 $ 5.5
Student Loan Originations $ 1.0 $ 0.7 $ 1.4 $ 1.3
Consumer Finance Originations $ 0.2 $ 0.3 $ 0.3 $ 0.3
Net Credit Loss Ratio (3) 0.19% 0.08% 0.09% 0.27%
Loans 90+ Days Past Due:
In millions of dollars $ 733 $ 722 $ 723 $ 846
% 2.28% 2.10% 1.88% 2.01%
1Q 2001 VS.
1Q 1Q 2000 INCREASE/
2001 (DECREASE)
--------- ------------------
Total Revenues, Net of Interest Expense $ 242 9%
Adjusted Operating Expenses 109 10%
Provision for Loan Losses -- (100%)
---------
Core Income Before Taxes and Minority Interest 133 16%
Income Taxes 51 16%
Minority Interest, Net of Tax 5 -
---------
Core Income $ 77 17%
=========
Average Assets (in billions of dollars) $ 47 38%
=========
Return on Assets 0.66%
=========
EOP ACCOUNTS OWNED AND SERVICED (IN MILLIONS):
Student Loans 3.5 25%
Mortgages 0.9 29%
Consumer Finance 0.1 -
---------
Total 4.5 25%
=========
TOTAL OWNED AND SERVICED AVERAGE LOANS (IN BILLION OF DOLLARS):
Mortgages (2) $ 26.9 34%
Student Loans 16.8 45%
Consumer Finance 1.0 150%
---------
Average Loans - On Balance Sheet 44.7 39%
Other Serviced Loans 63.8 18%
---------
Total $ 108.5 26%
=========
Mortgage Originations (in billions of dollars) $ 5.9 59%
Student Loan Originations $ 1.5 50%
Consumer Finance Originations $ 0.3 50%
Net Credit Loss Ratio (3) 0.06%
Loans 90+ Days Past Due:
In millions of dollars $ 957 31%
% 2.14%
(1) Includes Student Loans.
(2) Includes loans held for sale.
(3) The 4Q00 net credit loss ratio includes a 16 basis point increase related
to the adoption of revised FFIEC write-off policies.
Reclassified to conform to the current period's presentation.
Page 5
GLOBAL CONSUMER - BANKING/LENDING
NORTH AMERICA CARDS (1)
(In millions of dollars)
1Q 2Q 3Q 4Q
2000 2000 2000 2000
------------- ------------- ------------- -------------
Adjusted Revenues, Net of Interest Expense $ 2,551 $ 2,557 $ 2,737 $ 2,911
Adjusted Operating Expenses 954 972 1,002 1,014
Adjusted Provision for Loan Losses (2) 990 961 957 1,065
--------- --------- --------- ---------
Core Income Before Taxes 607 624 778 832
Income Taxes 225 234 284 303
--------- --------- --------- ---------
Core Income $ 382 $ 390 $ 494 $ 529
========= ========= ========= =========
Managed Average Assets (in billions of dollars) $ 90 $ 94 $ 101 $ 106
========= ========= ========= =========
Return on Managed Assets 1.71% 1.67% 1.95% 1.99%
========= ========= ========= =========
N.A. CARDS DATA (3):
(in billions of dollars)
Net Interest Revenue (in millions of dollars) (4) $ 1,956 $ 1,899 $ 2,055 $ 2,198
% of Average Managed Loans 9.29% 8.66% 8.62% 8.83%
Risk Adjusted Revenue (in millions of dollars) (5) $ 1,471 $ 1,516 $ 1,701 $ 1,769
% of Average Managed Loans 6.99% 6.91% 7.14% 7.11%
Adjusted Operating Expenses as % of Average Managed Loans 4.18% 4.13% 3.92% 3.77%
End of Period Managed Receivables $ 86.1 $ 92.3 $ 97.7 $ 103.2
Total EOP Open Accounts (in millions) 78.5 83.9 89.4 90.8
Total Sales $ 48.4 $ 55.3 $ 55.2 $ 56.8
END OF PERIOD LOANS:
On Balance Sheet $ 27.9 $ 33.5 $ 37.9 $ 37.0
Securitized 54.5 51.6 53.3 57.2
Held for Sale 3.4 6.5 5.8 8.1
--------- --------- --------- ---------
Total $ 85.8 $ 91.6 $ 97.0 $ 102.3
========= ========= ========= =========
AVERAGE LOANS:
On Balance Sheet $ 26.9 $ 32.1 $ 36.9 $ 36.9
Securitized 54.7 51.7 51.1 55.4
Held for Sale 3.1 4.4 6.8 6.7
--------- --------- --------- ---------
Total $ 84.7 $ 88.2 $ 94.8 $ 99.0
========= ========= ========= =========
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
On Balance Sheet $ 328 $ 347 $ 362 $ 398
Securitized 631 561 524 592
Held for Sale 21 40 56 61
--------- --------- --------- ---------
Total $ 980 $ 948 $ 942 $ 1,051
========= ========= ========= =========
Coincident Net Credit Loss Ratio 4.65% 4.32% 3.95% 4.22%
12 Month Lagged Net Credit Loss Ratio 5.11% 4.81% 4.67% 5.16%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 1,424 $ 1,320 $ 1,463 $ 1,573
% 1.65% 1.44% 1.50% 1.54%
1Q 2001 VS.
1Q 1Q 2000 INCREASE/
2001 (DECREASE)
------------- ------------------
Adjusted Revenues, Net of Interest Expense $ 3,004 18%
Adjusted Operating Expenses 1,039 9%
Adjusted Provision for Loan Losses (2) 1,221 23%
-----------
Core Income Before Taxes 744 23%
Income Taxes 275 22%
-----------
Core Income $ 469 23%
===========
Managed Average Assets (in billions of dollars) $ 106 18%
===========
Return on Managed Assets 1.79%
===========
N.A. CARDS DATA (3):
(in billions of dollars)
Net Interest Revenue (in millions of dollars) (4) $ 2,371 21%
% of Average Managed Loans 9.60%
Risk Adjusted Revenue (in millions of dollars) (5) $ 1,699 15%
% of Average Managed Loans 6.88%
Adjusted Operating Expenses as % of Average Managed Loans 3.88%
End of Period Managed Receivables $ 100.5 17%
Total EOP Open Accounts (in millions) 91.7 17%
Total Sales $ 51.2 6%
END OF PERIOD LOANS:
On Balance Sheet $ 32.6 17%
Securitized 60.1 10%
Held for Sale 7.0 106%
-----------
Total $ 99.7 16%
===========
AVERAGE LOANS:
On Balance Sheet $ 34.7 29%
Securitized 58.5 7%
Held for Sale 7.0 126%
-----------
Total $ 100.2 18%
===========
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
On Balance Sheet $ 466 42%
Securitized 667 6%
Held for Sale 63 200%
-----------
Total $ 1,196 22%
===========
Coincident Net Credit Loss Ratio 4.84%
12 Month Lagged Net Credit Loss Ratio 5.72%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 1,994 40%
% 2.00%
(1) Includes N.A. Bankcards, Associates Cards and Diners Club.
(2) On a managed basis.
(3) Excludes Diners Club
(4) Includes delinquency and other risk-based charges.
(5) Risk Adjusted Revenue is adjusted revenues less net credit losses.
Reclassified to conform to the current period's presentation.
Page 6
GLOBAL CONSUMER - BANKING/LENDING
CITIFINANCIAL
(In millions of dollars)
1Q 2Q 3Q 4Q
2000 2000 2000 2000
-------------- ------------- ------------- -------------
Total Revenues, Net of Interest Expense* $ 1,222 $ 1,269 $ 1,262 $ 1,318
Adjusted Operating Expenses 536 571 568 581
Provision for Benefits, Claims, and Credit Losses 404 373 362 407
------------- ------------ ------------ ------------
Core Income Before Taxes 282 325 332 330
Income Taxes 103 120 119 117
------------- ------------ ------------ ------------
Core Income $ 179 $ 205 $ 213 $ 213
============= ============ ============ ============
Average Assets (in billions of dollars) $ 51 $ 55 $ 58 $ 61
============= ============ ============ ============
Return on Assets 1.41% 1.50% 1.46% 1.39%
============= ============ ============ ============
NET RECEIVABLES (IN BILLIONS OF DOLLARS):
Real estate-secured loans (1) $ 33.7 $ 35.5 $ 36.7 $ 38.1
Personal loans (2) 9.8 9.7 9.7 9.9
Auto 3.0 3.8 4.2 4.6
Sales finance and other 2.8 2.6 2.6 2.7
------------- ------------ ------------ ------------
Total $ 49.3 $ 51.6 $ 53.2 $ 55.3
============= ============ ============ ============
Number of offices 2,767 2,738 2,699 2,720
Average yield (3) 14.26% 14.16% 14.11% 14.03%
Average net interest margin (3) 8.21% 7.84% 7.61% 7.55%
Net credit loss ratio (3) 2.92% 2.49% 2.33% 2.57%
Loans 90+ Days Past Due:
In millions of dollars $ 1,044 $ 1,033 $ 1,084 $ 1,272
% 2.11% 1.98% 2.00% 2.23%
(1) Includes fully secured $.M.A.R.T. receivables,
as follows: $ 4,106.1 $ 4,415.7 $ 4,695.7 $ 5,170.3
(2) Includes $.A.F.E. and partially secured $.M.A.R.T.
receivables, as follows: $ 319.1 $ 315.7 $ 311.6 $ 309.3
(3) Includes loans held for sale
1Q 2001 VS.
1Q 1Q 2000 INCREASE/
2001 (DECREASE)
------------- ------------------
Total Revenues, Net of Interest Expense* $ 1,339 10%
Adjusted Operating Expenses 569 6%
Provision for Benefits, Claims, and Credit Losses 429 6%
-------------
Core Income Before Taxes 341 21%
Income Taxes 129 25%
-------------
Core Income $ 212 18%
=============
Average Assets (in billions of dollars) $ 63 24%
=============
Return on Assets 1.36%
=============
NET RECEIVABLES (IN BILLIONS OF DOLLARS):
Real estate-secured loans (1) $ 40.3 20%
Personal loans (2) 9.8 -
Auto 5.2 73%
Sales finance and other 2.4 (14%)
-------------
Total $ 57.7 17%
=============
Number of offices 2,430 (12%)
Average yield (3) 13.93%
Average net interest margin (3) 7.70%
Net credit loss ratio (3) 2.57%
Loans 90+ Days Past Due:
In millions of dollars $ 1,599 53%
% 2.77%
(1) Includes fully secured $.M.A.R.T. receivables,
as follows: $ 5,613.3 37%
(2) Includes $.A.F.E. and partially secured $.M.A.R.T.
receivables, as follows: $ 296.5 (7%)
(3) Includes loans held for sale
* Excludes realized gains / (losses) on investments.
Page 7
GLOBAL CONSUMER - INSURANCE
TRAVELERS LIFE AND ANNUITY
(In millions of dollars)
1Q 2Q 3Q 4Q
2000 2000 2000 2000
------------- ------------- -------------- --------------
Total Revenues, Net of Interest Expense* $ 1,010 $ 983 $ 899 $ 999
Total Operating Expenses 126 97 103 83
Provision for Benefits and Claims 603 586 531 605
--------- --------- --------- ---------
Core Income Before Taxes 281 300 265 311
Income Taxes 94 98 86 102
--------- --------- --------- ---------
Core Income $ 187 $ 202 $ 179 $ 209
========= ========= ========= =========
PRE-TAX CONTRIBUTION BY SOURCE:
Individual annuities $ 108 $ 118 $ 117 $ 122
Group annuities 92 114 91 123
Life and long term care insurance 60 55 40 46
Other (includes run-off and return on excess capital) 21 13 17 20
--------- --------- --------- ---------
Total $ 281 $ 300 $ 265 $ 311
========= ========= ========= =========
INDIVIDUAL ANNUITIES:
Net written premiums & deposits:
Fixed $ 293.5 $ 302.6 $ 320.3 $ 350.0
Variable 1,245.0 1,258.5 1,273.6 1,247.7
Individual Payout 20.5 21.7 20.6 17.0
--------- --------- --------- ---------
Total $ 1,559.0 $ 1,582.8 $ 1,614.5 $ 1,614.7
========= ========= ========= =========
Policyholder account balances & benefit reserves: (1)
Fixed $ 7,911.3 $ 7,904.0 $ 7,939.8 $ 8,050.0
Variable 21,072.7 21,013.2 21,678.1 20,704.0
Individual Payout 619.6 626.2 630.0 630.3
--------- --------- --------- ---------
Total $29,603.6 $29,543.4 $30,247.9 $29,384.3
========= ========= ========= =========
GROUP ANNUITIES:
Net written premiums & deposits (2) $ 1,456.9 $ 1,439.1 $ 1,481.8 $ 1,149.9
Policyholder account balances & benefit reserves: (1)
GICs and other investment contracts $11,087.0 $11,204.2 $11,966.9 $12,598.6
Payout group annuities 4,514.9 4,624.0 4,713.8 4,861.5
--------- --------- --------- ---------
Total $15,601.9 $15,828.2 $16,680.7 $17,460.1
========= ========= ========= =========
INDIVIDUAL LIFE INSURANCE:
Net written premiums and deposits:
Direct periodic premiums and deposits $ 116.7 $ 113.4 $ 135.8 $ 144.7
Single premium deposits 18.3 21.0 22.3 37.6
Reinsurance (19.1) (20.3) (21.4) (23.0)
--------- --------- --------- ---------
Total $ 115.9 $ 114.1 $ 136.7 $ 159.3
========= ========= ========= =========
Policyholder account balances & benefit reserves $ 2,755.3 $ 2,801.9 $ 2,911.0 $ 2,983.3
Life insurance in force (in billions, face amt.) $ 61.7 $ 63.2 $ 65.2 $ 66.9
Life insurance issued (in billions, face amt.) $ 2.7 $ 3.0 $ 3.1 $ 2.9
ALL BUSINESSES:
Net investment income (pretax) $ 594.9 $ 639.1 $ 609.1 $ 655.9
Interest credited to contractholders $ 244.7 $ 248.7 $ 266.7 $ 290.4
STATUTORY DATA:
TRAVELERS INSURANCE COMPANY
Statutory capital and surplus $ 5,011.2 $ 4,977.4 $ 5,355.1 $ 5,123.4
Surplus to liabilities ratio 20.5% 20.3% 21.3% 20.2%
1Q 2001 VS.
1Q 1Q 2000 INCREASE/
2001 (DECREASE)
-------------- ----------------
Total Revenues, Net of Interest Expense* $ 1,130 12%
Total Operating Expenses 88 (30%)
Provision for Benefits and Claims 729 21%
--------- --------
Core Income Before Taxes 313 11%
Income Taxes 103 10%
--------- --------
Core Income $ 210 12%
========= ========
PRE-TAX CONTRIBUTION BY SOURCE:
Individual annuities $ 122 13%
Group annuities 117 27%
Life and long term care insurance 63 5%
Other (includes run-off and return on excess capital) 11 (48%)
--------- --------
Total $ 313 11%
========= ========
INDIVIDUAL ANNUITIES:
Net written premiums & deposits:
Fixed $ 427.2 46%
Variable 1,098.7 (12%)
Individual Payout 18.7 (9%)
--------- --------
Total $ 1,544.6 (1%)
========= ========
Policyholder account balances & benefit reserves: (1)
Fixed $ 8,271.7 5%
Variable 18,948.3 (10%)
Individual Payout 631.9 2%
--------- ----
Total $27,851.9 (6%)
========= ====
GROUP ANNUITIES:
Net written premiums & deposits (2) $ 2,501.6 72%
Policyholder account balances & benefit reserves: (1)
GICs and other investment contracts $13,732.0 24%
Payout group annuities 5,140.5 14%
--------- ----
Total $18,872.5 21%
========= ====
INDIVIDUAL LIFE INSURANCE:
Net written premiums and deposits:
Direct periodic premiums and deposits $ 187.0 60%
Single premium deposits 47.2 158%
Reinsurance (22.6) (18%)
--------- --------
Total $ 211.6 83%
========= ====
Policyholder account balances & benefit reserves $ 3,085.1 12%
Life insurance in force (in billions, face amt.) $ 69.4 12%
Life insurance issued (in billions, face amt.) $ 3.8 41%
ALL BUSINESSES:
Net investment income (pretax) $ 654.9 10%
Interest credited to contractholders $ 291.3 19%
STATUTORY DATA:
TRAVELERS INSURANCE COMPANY
Statutory capital and surplus $ 5,024.5 --
Surplus to liabilities ratio 18.8%
(1) Includes general account, separate accounts and managed funds.
(2) Excludes deposits of $28.0 for the first quarter of 2001 and $24.0, $45.0
and $251.0 in the first, second, and fourth quarters of 2000, related to
Travelers plans previously managed externally.
* Excludes realized gains / (losses) on investments.
Page 8
GLOBAL CONSUMER - INSURANCE
PRIMERICA FINANCIAL SERVICES
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q
2000 2000 2000 2000 2001
--------- ----------- ------------ ----------- ---------
Total Revenues, Net of Interest Expense* $ 472 $ 479 $ 474 $ 490 $ 490
Total Operating Expenses 162 159 177 161 169
Provision for Benefits and Claims 125 126 106 139 128
-------- -------- -------- -------- --------
Core Income Before Taxes 185 194 191 190 193
Income Taxes 66 69 67 66 68
-------- -------- -------- -------- --------
Core Income $ 119 $ 125 $ 124 $ 124 $ 125
======== ======== ======== ======== ========
LIFE INSURANCE
Face value (in billions) of:
Life insurance issued $ 15.0 $ 18.5 $ 16.8 $ 17.1 $ 16.3
Life insurance in force $ 397.8 $ 403.6 $ 408.4 $ 412.7 $ 415.4
Annualized issued premiums $ 44.1 $ 54.1 $ 49.5 $ 50.0 $ 47.4
Direct premiums $ 324.5 $ 330.9 $ 333.3 $ 337.6 $ 340.4
Earned premiums $ 270.6 $ 277.4 $ 275.0 $ 282.6 $ 284.0
OTHER PRODUCTS
Mutual fund sales at NAV:
Proprietary $ 465.0 $ 468.7 $ 448.5 $ 428.9 $ 479.9
Other funds 497.1 552.5 397.8 368.5 330.1
-------- -------- -------- -------- --------
Total U.S. mutual fund sales 962.1 1,021.2 846.3 797.4 810.0
Mutual fund sales - Canada 228.8 128.1 117.4 119.0 183.8
-------- -------- -------- -------- --------
Total mutual fund sales $1,190.9 $1,149.3 $ 963.7 $ 916.4 $ 993.8
======== ======== ======== ======== ========
Cash advanced on $.M.A.R.T. and $.A.F.E. loans (1) $ 492.0 $ 475.6 $ 457.2 $ 667.5 $ 694.5
Variable annuity net written premiums and deposits $ 249.9 $ 248.0 $ 270.6 $ 288.2 $ 247.6
AGENTS LICENSED FOR:
Life insurance 79,818 82,288 85,183 86,900 88,907
Mutual funds 25,570 25,968 27,300 27,961 27,671
$.M.A.R.T. / $.A.F.E. loans 93,055 99,481 105,640 116,491 125,450
Variable annuities 16,453 16,692 17,281 17,777 18,665
Long term care 8,010 7,785 9,612 10,134 10,869
Home & auto insurance 13,238 13,038 12,194 11,647 11,275
Financial Needs Analyses submitted 110,900 109,451 108,838 108,705 114,991
1Q 2001 VS.
1Q 2000 INCREASE/
(DECREASE)
---------------
Total Revenues, Net of Interest Expense* 4%
Total Operating Expenses 4%
Provision for Benefits and Claims 2%
Core Income Before Taxes 4%
Income Taxes 3%
Core Income 5%
LIFE INSURANCE
Face value (in billions) of:
Life insurance issued 9%
Life insurance in force 4%
Annualized issued premiums 7%
Direct premiums 5%
Earned premiums 5%
OTHER PRODUCTS
Mutual fund sales at NAV:
Proprietary 3%
Other funds (34%)
Total U.S. mutual fund sales (16%)
Mutual fund sales - Canada (20%)
Total mutual fund sales (17%)
Cash advanced on $.M.A.R.T. and $.A.F.E. loans (1) 41%
Variable annuity net written premiums and deposits (1%)
AGENTS LICENSED FOR:
Life insurance 11%
Mutual funds 8%
$.M.A.R.T. / $.A.F.E. loans 35%
Variable annuities 13%
Long term care 36%
Home & auto insurance (15%)
Financial Needs Analyses submitted 4%
(1) The $.M.A.R.T. and $.A.F.E. loan products are marketed by PFS; the
receivables are reflected in the assets of CitiFinancial.
* Excludes realized gains / (losses) on investments.
Page 9
GLOBAL CONSUMER - INSURANCE
PERSONAL LINES
(In millions of dollars)
1Q 2Q 3Q 4Q
2000 2000 2000 2000
---------- ------------ ---------- ----------
Total Revenues, Net of Interest Expense* $ 1,034 $ 1,050 $ 1,058 $ 1,088
Total Operating Expenses 250 256 246 250
Claims and Claim Adjustment Expenses 659 673 717 718
-------- -------- -------- --------
Core Income Before Taxes and Minority Interest 125 121 95 120
Income Taxes 38 36 27 37
Minority Interest, Net of Tax 13 3 -- --
-------- -------- -------- --------
Core Income (1) $ 74 $ 82 $ 68 $ 83
======== ======== ======== ========
NET WRITTEN PREMIUMS BY PRODUCT LINE:
Auto $ 588.7 $ 614.7 $ 608.7 $ 596.1
Homeowners and other 307.9 378.6 397.1 372.5
-------- -------- -------- --------
Total net written premiums (a) $ 896.6 $ 993.3 $1,005.8 $ 968.6
======== ======== ======== ========
NET WRITTEN PREMIUMS BY DISTRIBUTION CHANNEL:
Independent agents $ 523.0 $ 592.8 $ 612.3 $ 578.8
Strategic distribution group 147.3 165.1 176.2 172.2
Domestics 168.9 177.0 166.9 171.3
Other 57.4 58.4 50.4 46.3
-------- -------- -------- --------
Total net written premiums (a) $ 896.6 $ 993.3 $1,005.8 $ 968.6
======== ======== ======== ========
STATUTORY RATIO DEVELOPMENT:
Earned premiums (b) $ 917.2 $ 927.7 $ 937.8 $ 972.5
Losses and loss adjustment expenses (c) 661.5 674.0 719.3 721.0
Other underwriting expenses (d) 242.1 254.3 260.3 245.3
-------- -------- -------- --------
Total deductions 903.6 928.3 979.6 966.3
-------- -------- -------- --------
Statutory underwriting gain/(loss) $ 13.6 $ (0.6) $ (41.8) $ 6.2
======== ======== ======== ========
STATUTORY COMBINED RATIO:
Loss and loss adjustment expense ratio (c / b) 72.1% 72.7% 76.7% 74.1%
Other underwriting expense ratio (d / a) 27.0% 25.6% 25.9% 25.3%
-------- -------- -------- --------
Combined ratio 99.1% 98.3% 102.6% 99.4%
======== ======== ======== ========
Net investment income (pre-tax) $ 113.1 $ 115.2 $ 113.0 $ 107.7
Effective tax rate on net investment income 29.3% 29.5% 29.4% 29.2%
Catastrophe losses, net of reinsurance (after-tax) $ 30.4 $ 17.2 $ 1.9 $ 4.1
1Q 2001 VS.
1Q 1Q 2000 INCREASE/
2001 (DECREASE)
-------------- --------------------
Total Revenues, Net of Interest Expense* $ 1,080 4%
Total Operating Expenses 267 7%
Claims and Claim Adjustment Expenses 688 4%
-------
Core Income Before Taxes and Minority Interest 125 --
Income Taxes 38 --
Minority Interest, Net of Tax -- (100%)
-------
Core Income (1) $ 87 18%
=======
NET WRITTEN PREMIUMS BY PRODUCT LINE:
Auto $ 639.1 9%
Homeowners and other 322.7 5%
-------
Total net written premiums (a) $ 961.8 7%
=======
NET WRITTEN PREMIUMS BY DISTRIBUTION CHANNEL:
Independent agents 561.8 7%
Strategic distribution group 165.7 12%
Domestics 187.3 11%
Other 47.0 (18%)
-------
Total net written premiums (a) $ 961.8 7%
=======
STATUTORY RATIO DEVELOPMENT:
Earned premiums (b) $ 957.9 4%
Losses and loss adjustment expenses (c) 688.5 4%
Other underwriting expenses (d) 254.6 5%
-------
Total deductions 943.1 4%
-------
Statutory underwriting gain/(loss) 14.8 9%
=======
STATUTORY COMBINED RATIO:
Loss and loss adjustment expense ratio (c / b) 71.9%
Other underwriting expense ratio (d / a) 26.5%
-------
Combined ratio 98.4%
=======
Net investment income (pre-tax) 114.1 1%
Effective tax rate on net investment income 29.2%
Catastrophe losses, net of reinsurance (after-tax) $ -- (100%)
(1) During April 2000, Travelers Insurance Group Inc. completed a cash tender
offer to purchase all the outstanding shares of Class A Common Stock of
Travelers Property Casualty Corp. at a price of $41.95 per share. Results
for the periods prior to April 20, 2000 are net of minority interest.
* Excludes realized gains / (losses) on investments.
Reclassified to conform to the current period's presentation.
Page 10
GLOBAL CONSUMER - INTERNATIONAL
WESTERN EUROPE
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q
2000 2000 2000 2000 2001
--------- -------- ---------- -------- -------
Total Revenues, Net of Interest Expense $ 618 $ 600 $ 579 $ 591 $ 622
Adjusted Operating Expenses 360 363 331 333 347
Provision for Benefits, Claims, and Credit Losses 104 92 97 97 99
------ ------ ------ ------ ------
Core Income Before Taxes 154 145 151 161 176
Income Taxes 57 53 56 53 65
------ ------ ------ ------ ------
Core Income $ 97 $ 92 $ 95 $ 108 $ 111
====== ====== ====== ====== ======
Average Assets (in billions of dollars) $ 22 $ 21 $ 21 $ 21 $ 21
====== ====== ====== ====== ======
Return on Assets 1.77% 1.76% 1.80% 2.05% 2.14%
====== ====== ====== ====== ======
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Cards $ 2.3 $ 2.2 $ 2.2 $ 2.2 $ 2.0
Mortgages 2.1 2.1 2.1 2.1 2.2
Auto 1.3 1.4 1.4 1.5 1.6
Personal 10.1 10.0 9.9 9.9 10.4
Other 1.1 1.1 1.1 1.0 1.1
------ ------ ------ ------ ------
Total $ 16.9 $ 16.8 $ 16.7 $ 16.7 $ 17.3
====== ====== ====== ====== ======
Average Customer Deposits (in billions of dollars) $ 13.0 $ 12.5 $ 12.1 $ 12.0 $ 12.9
EOP Accounts (in millions) 9.8 9.9 10.0 10.1 9.8
EOP Card Accounts (in millions) 2.4 2.5 2.5 2.6 2.1
Non-Interest Revenue as a % of Total Revenues 32.3% 30.7% 30.8% 31.5% 28.9%
Net Credit Loss Ratio (1) 1.88% 1.84% 2.01% 2.40% 1.92%
Loan 90+ Days Past Due:
In millions of dollars $ 899 $ 892 $ 829 $ 835 $ 785
% 5.31% 5.18% 5.09% 4.78% 4.68%
Proprietary Mutual Funds / UIT $ 356 $ 367 $ 225 $ 228 $ 196
Proprietary Money Market Funds 193 109 98 104 154
------ ------ ------ ------ ------
Total Proprietary Funds 549 476 323 332 350
Third Party Funds 469 326 436 337 322
------ ------ ------ ------ ------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $1,018 $ 802 $ 759 $ 669 $ 672
====== ====== ====== ====== ======
Branches 434 434 437 436 432
Consumer Finance Offices 128 131 132 130 130
ATM-only locations 33 34 36 33 45
Proprietary ATMs 839 859 875 883 888
1Q 2001 VS.
1Q 2000 INCREASE/
(DECREASE)
------------------
Total Revenues, Net of Interest Expense 1%
Adjusted Operating Expenses (4%)
Provision for Benefits, Claims, and Credit Losses (5%)
Core Income Before Taxes 14%
Income Taxes 14%
Core Income 14%
Average Assets (in billions of dollars) (5%)
Return on Assets
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Cards (13%)
Mortgages 5%
Auto 23%
Personal 3%
Other -
Total 2%
Average Customer Deposits (in billions of dollars) (1%)
EOP Accounts (in millions) -
EOP Card Accounts (in millions) (13%)
Non-Interest Revenue as a % of Total Revenues
Net Credit Loss Ratio (1)
Loan 90+ Days Past Due:
In millions of dollars (13%)
%
Proprietary Mutual Funds / UIT (45%)
Proprietary Money Market Funds (20%)
Total Proprietary Funds (36%)
Third Party Funds (31%)
Mutual Fund / UIT Sales at NAV (in millions of dollars) (34%)
Branches -
Consumer Finance Offices 2%
ATM-only locations 36%
Proprietary ATMs 6%
(1) The 4Q00 net credit loss ratio includes a 24 basis point increase related
to the adoption of revised FFIEC write-off policies.
Reclassified to conform to the current period's presentation.
Page 11
GLOBAL CONSUMER - INTERNATIONAL
JAPAN
(In millions of dollars)
1Q 2Q 3Q 4Q
2000 2000 2000 2000
------------- ------------- ------------- --------------
Total Revenues, Net of Interest Expense $ 593 $ 664 $ 714 $ 816
Adjusted Operating Expenses 243 261 268 355
Provision for Benefits, Claims, and Credit Losses 105 121 127 147
------------- ------------- ------------- --------------
Core Income Before Taxes 245 282 319 314
Income Taxes 90 104 110 107
------------- ------------- ------------- --------------
Core Income $ 155 $ 178 $ 209 $ 207
============= ============= ============= ==============
Average Assets (in billions of dollars) $ 15 $ 16 $ 18 $ 20
============= ============= ============= ==============
Return on Assets 4.16% 4.47% 4.62% 4.12%
============= ============= ============= ==============
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Mortgages $ 3.4 $ 3.8 $ 4.2 $ 4.2
Cards 0.8 1.1 1.1 1.1
Personal 5.2 6.0 6.9 8.0
Other 0.2 0.2 0.2 0.3
------------- ------------- ------------- --------------
Total $ 9.6 $ 11.1 $ 12.4 $ 13.6
============= ============= ============= ==============
Average Customer Deposits (in billions of dollars) $ 13.1 $ 13.5 $ 13.9 $ 13.9
EOP Accounts (in millions) 4.0 4.2 4.7 4.8
EOP Card Accounts (in millions) 0.9 0.9 1.0 1.0
Non-Interest Revenue as a % of Total Revenues 11.0% 12.0% 11.0% 10.4%
Net Credit Loss Ratio 3.68% 3.19% 3.15% 3.81%
Loan 90+ Days Past Due:
In millions of dollars $ 103 $ 100 $ 105 $ 101
% 0.99% 0.83% 0.76% 0.73%
Proprietary Mutual Funds / UIT $ 67 $ 78 $ 178 $ 75
Proprietary Money Market Funds 273 246 207 71
------------- ------------- ------------- --------------
Total Proprietary Funds 340 324 385 146
Third Party Funds 113 104 36 110
------------- ------------- ------------- --------------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $ 453 $ 428 $ 421 $ 256
============= ============= ============= ==============
Branches 22 22 22 22
Consumer Finance Offices 685 751 878 902
ATM-only locations/Unmanned Kiosks 78 110 139 161
Proprietary ATMs 61 61 61 61
1Q 2001 VS.
1Q 1Q 2000 INCREASE/
2001 (DECREASE)
------- -----------------
Total Revenues, Net of Interest Expense $ 826 39%
Adjusted Operating Expenses 346 42%
Provision for Benefits, Claims, and Credit Losses 162 54%
------
Core Income Before Taxes 318 30%
Income Taxes 114 27%
------
Core Income $ 204 32%
======
Average Assets (in billions of dollars) $ 19 27%
======
Return on Assets 4.35%
======
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Mortgages $ 4.2 24%
Cards 1.0 25%
Personal 7.9 52%
Other 0.4 100%
------
Total $ 13.5 41%
======
Average Customer Deposits (in billions of dollars) $ 14.3 9%
EOP Accounts (in millions) 4.9 23%
EOP Card Accounts (in millions) 1.0 11%
Non-Interest Revenue as a % of Total Revenues 9.4%
Net Credit Loss Ratio 4.06%
Loan 90+ Days Past Due:
In millions of dollars $ 107 4%
% 0.81%
Proprietary Mutual Funds / UIT $ 99 48%
Proprietary Money Market Funds 91 (67%)
------
Total Proprietary Funds 190 (44%)
Third Party Funds 92 (19%)
------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $ 282 (38%)
======
Branches 22 --
Consumer Finance Offices 902 32%
ATM-only locations/Unmanned Kiosks 205 163%
Proprietary ATMs 61 --
Reclassified to conform to the current period's presentation.
Page 12
GLOBAL CONSUMER - INTERNATIONAL
ASIA (EXCLUDING JAPAN)
(In millions of dollars)
1Q 2Q 3Q 4Q
2000 2000 2000 2000
------------- ------------- ------------- --------------
Total Revenues, Net of Interest Expense $ 539 $ 519 $ 521 $ 517
Adjusted Operating Expenses 245 240 233 246
Provision for Benefits, Claims, and Credit Losses 74 62 71 66
------ ------ ------ ------
Core Income Before Taxes 220 217 217 205
Income Taxes 79 77 77 73
------ ------ ------ ------
Core Income $ 141 $ 140 $ 140 $ 132
====== ====== ====== ======
Average Assets (in billions of dollars) $ 27 $ 26 $ 27 $ 26
====== ====== ====== ======
Return on Assets 2.10% 2.17% 2.06% 2.02%
====== ====== ====== ======
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Mortgages $ 12.5 $ 12.2 $ 12.0 $ 11.6
Cards 4.7 4.7 4.8 4.8
Auto 2.3 2.3 2.4 2.4
Personal 1.2 1.2 1.3 1.3
Other 1.9 1.8 1.8 1.7
------ ------ ------ ------
Total $ 22.6 $ 22.2 $ 22.3 $ 21.8
====== ====== ====== ======
Average Customer Deposits (in billions of dollars) $ 33.3 $ 33.5 $ 34.2 $ 34.2
EOP Accounts (in millions) 7.3 7.5 7.8 8.1
EOP Card Accounts (in millions) 4.4 4.5 4.7 4.9
Non-Interest Revenue as a % of Total Revenues 34.5% 31.1% 32.4% 30.7%
Net Credit Loss Ratio 1.24% 1.07% 1.14% 1.18%
Loans 90+ Days Past Due:
In millions of dollars $ 433 $ 396 $ 350 $ 335
% 1.92% 1.75% 1.57% 1.51%
Proprietary Mutual Funds / UIT $ 115 $ 126 $ 149 $ 215
Proprietary Money Market Funds 67 60 49 97
------ ------ ------ ------
Total Proprietary Funds 182 186 198 312
Third Party Funds 1,823 825 953 970
------ ------ ------ ------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $2,005 $1,011 $1,151 $1,282
====== ====== ====== ======
Branches 71 73 76 77
ATM-only locations 79 75 74 73
Proprietary ATMs 300 300 301 303
1Q 2001 VS.
1Q 1Q 2000 INCREASE/
2001 (DECREASE)
------------- -----------------
Total Revenues, Net of Interest Expense $ 540 --
Adjusted Operating Expenses 242 (1%)
Provision for Benefits, Claims, and Credit Losses 62 (16%)
------ ------
Core Income Before Taxes 236 7%
Income Taxes 87 10%
------ ------
Core Income $ 149 6%
======
Average Assets (in billions of dollars) $ 25 (7%)
======
Return on Assets 2.42%
======
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Mortgages $ 11.5 (8%)
Cards 4.8 2%
Auto 2.5 9%
Personal 1.3 8%
Other 1.6 (16%)
------
Total $ 21.7 (4%)
======
Average Customer Deposits (in billions of dollars) $ 35.1 5%
EOP Accounts (in millions) 8.4 15%
EOP Card Accounts (in millions) 5.1 16%
Non-Interest Revenue as a % of Total Revenues 31.5%
Net Credit Loss Ratio 1.14%
Loans 90+ Days Past Due:
In millions of dollars $ 334 (23%)
% 1.58%
Proprietary Mutual Funds / UIT $ 121 5%
Proprietary Money Market Funds 90 34%
------
Total Proprietary Funds 211 16%
Third Party Funds 812 (55%)
------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $1,023 (49%)
======
Branches 77 8%
ATM-only locations 77 (3%)
Proprietary ATMs 303 1%
Reclassified to conform to the current period's presentation.
Page 13
GLOBAL CONSUMER - INTERNATIONAL
LATIN AMERICA
(In millions of dollars)
1Q 2Q 3Q 4Q
2000 2000 2000 2000
------------- ------------- -------------- --------------
Total Revenues, Net of Interest Expense (1) $ 513 $ 466 $ 436 $ 526
Adjusted Operating Expenses 323 327 318 339
Provision for Benefits, Claims, and Credit Losses (1) 90 76 69 100
------ ------ ------ ------
Core Income Before Taxes 100 63 49 87
Income Taxes 34 22 17 18
------ ------ ------ ------
Core Income $ 66 $ 41 $ 32 $ 69
====== ====== ====== ======
Average Assets (in billions of dollars) $ 14 $ 12 $ 11 $ 11
====== ====== ====== ======
Return on Assets 1.90% 1.37% 1.16% 2.50%
====== ====== ====== ======
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Cards $ 1.8 $ 1.8 $ 1.7 $ 1.7
Mortgages 2.0 2.0 2.1 2.1
Auto 1.4 1.0 0.9 0.9
Personal 1.8 1.8 1.8 1.8
Other 0.6 0.6 0.5 0.5
------ ------ ------ ------
Total $ 7.6 $ 7.2 $ 7.0 $ 7.0
====== ====== ====== ======
Average Customer Deposits (in billions of dollars) $ 13.8 $ 13.7 $ 13.6 $ 13.5
EOP Accounts (in millions) 8.9 9.3 9.3 9.3
EOP Card Accounts (in millions) 2.0 1.9 1.9 2.0
Non-Interest Revenue as a % of Total Revenues 36.7% 37.4% 39.8% 45.9%
Net Credit Loss Ratio (2) 4.77% 4.25% 3.89% 5.58%
Loan 90+ Days Past Due:
In millions of dollars $ 333 $ 323 $ 319 $ 250
% 4.58% 4.52% 4.55% 3.66%
Proprietary Mutual Funds/UIT Funds $ 357 $ 193 $ 294 $ 185
Proprietary Money Market Funds 1,174 1,167 939 996
------ ------ ------ ------
Total Proprietary Funds $1,531 $1,360 $1,233 $1,181
Third Party Funds 218 146 126 129
------ ------ ------ ------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $1,749 $1,506 $1,359 $1,310
====== ====== ====== ======
Branches 453 447 404 406
Consumer Finance Offices 101 101 101 110
ATM-only locations 84 84 89 85
Proprietary ATMs 749 753 730 718
1Q 2001 VS.
1Q 1Q 2000 INCREASE/
2001 (DECREASE)
-------------- ------------------
Total Revenues, Net of Interest Expense (1) $ 471 (8%)
Adjusted Operating Expenses 337 4%
Provision for Benefits, Claims, and Credit Losses (1) 89 (1%)
------
Core Income Before Taxes 45 (55%)
Income Taxes 13 (62%)
------
Core Income $ 32 (52%)
======
Average Assets (in billions of dollars) $ 13 (7%)
======
Return on Assets 1.00%
======
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Cards $ 1.7 (6%)
Mortgages 2.1 5%
Auto 0.8 (43%)
Personal 1.8 --
Other 0.4 (33%)
------
Total $ 6.8 (11%)
======
Average Customer Deposits (in billions of dollars) $ 13.8 --
EOP Accounts (in millions) 9.4 6%
EOP Card Accounts (in millions) 2.0 --
Non-Interest Revenue as a % of Total Revenues 39.6%
Net Credit Loss Ratio (2) 4.24%
Loan 90+ Days Past Due:
In millions of dollars $ 318 (5%)
% 4.76%
Proprietary Mutual Funds/UIT Funds $ 459 29%
Proprietary Money Market Funds 826 (30%)
------
Total Proprietary Funds $1,285 (16%)
Third Party Funds 148 (32%)
------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $1,433 (18%)
======
Branches 404 (11%)
Consumer Finance Offices 120 19%
ATM-only locations 86 2%
Proprietary ATMs 727 (3%)
(1) Includes a fourth quarter 2000 year-to-date reclassification which
increased both Revenues and Provision for Benefits, Claims, and Credit
Losses by $26 million.
(2) The 4Q00 net credit loss ratio includes a 232 basis point increase related
to the adoption of revised FFIEC write-off policies.
Reclassified to conform to the current period's presentation.
Page 14
GLOBAL CONSUMER - INTERNATIONAL
CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q
2000 2000 2000 2000 2001
--------- -------- --------- ---------- ---------
Total Revenues, Net of Interest Expense $100 $106 $110 $117 $131
Adjusted Operating Expenses 67 72 78 88 92
Provision for Benefits, Claims, and Credit Losses 10 8 7 8 9
---- ---- ---- ---- ----
Core Income Before Taxes 23 26 25 21 30
Income Taxes 8 10 9 7 11
---- ---- ---- ---- ----
Core Income $ 15 $ 16 $ 16 $ 14 $ 19
==== ==== ==== ==== ====
Average Assets (in billions of dollars) $ 3 $ 3 $ 3 $ 4 $ 4
==== ==== ==== ==== ====
Return on Assets 2.01% 2.15% 2.12% 1.39% 1.93%
==== ==== ==== ==== ====
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Cards $0.5 $0.5 $0.6 $0.6 $0.6
Mortgages 0.2 0.2 0.2 0.2 0.2
Auto 0.3 0.3 0.3 0.3 0.4
Personal 0.4 0.4 0.4 0.5 0.5
Other 0.5 0.5 0.4 0.4 0.5
---- ---- ---- ---- ----
Total $1.9 $1.9 $1.9 $2.0 $2.2
==== ==== ==== ==== ====
Average Customer Deposits (in billions of dollars) $3.6 $3.7 $3.9 $4.2 $5.6
EOP Accounts (in millions) 2.2 2.4 2.7 2.8 3.3
EOP Card Accounts (in millions) 1.5 1.6 1.7 1.8 1.9
Non-Interest Revenue as a % of Total Revenues 42.3% 42.5% 40.1% 40.8% 39.1%
Net Credit Loss Ratio (1) 2.60% 1.66% 1.45% 2.10% 1.66%
Loans 90+ Days Past Due:
In millions of dollars $ 40 $ 38 $ 34 $ 32 $ 33
% 2.16% 1.95% 1.73% 1.37% 1.40%
Proprietary Mutual Funds / UIT $ 8 $ 19 $ 11 $ 9 $ 4
Proprietary Money Market Funds -- -- 1 -- --
---- ---- ---- ---- ----
Total Proprietary Funds 8 19 12 9 4
Third Party Funds 154 118 72 36 91
---- ---- ---- ---- ----
Mutual Fund / UIT Sales at NAV (in millions of dollars) $162 $137 $ 84 $ 45 $ 95
==== ==== ==== ==== ====
Branches 36 41 55 58 169
ATM-only locations 50 53 57 65 76
Proprietary ATMs 112 113 119 129 144
1Q 2001 VS.
1Q 2000 INCREASE/
(DECREASE)
------------------
Total Revenues, Net of Interest Expense 31%
Adjusted Operating Expenses 37%
Provision for Benefits, Claims, and Credit Losses (10%)
Core Income Before Taxes 30%
Income Taxes 38%
Core Income 27%
Average Assets (in billions of dollars) 33%
Return on Assets
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Cards 20%
Mortgages --
Auto 33%
Personal 25%
Other --
Total 16%
Average Customer Deposits (in billions of dollars) 56%
EOP Accounts (in millions) 50%
EOP Card Accounts (in millions) 27%
Non-Interest Revenue as a % of Total Revenues (8%)
Net Credit Loss Ratio (1)
Loans 90+ Days Past Due:
In millions of dollars (18%)
%
Proprietary Mutual Funds / UIT (50%)
Proprietary Money Market Funds --
Total Proprietary Funds (50%)
Third Party Funds (41%)
Mutual Fund / UIT Sales at NAV (in millions of dollars) (41%)
Branches 369%
ATM-only locations 52%
Proprietary ATMs 29%
(1) The 4Q00 net credit loss ratio includes a 59 basis point increase related
to the adoption of revised FFIEC write-off policies.
Reclassified to conform to the current period's presentation.
Page 15
GLOBAL CONSUMER
OTHER CONSUMER (1)
(In millions of dollars)
1Q 2001 VS.
1Q 2Q 3Q 4Q 1Q 1Q 2000 INCREASE/
2000 2000 2000 2000 2001 (DECREASE)
----- ----- ----- ----- ----- -----------------
Total Revenues, Net of Interest Expense $ 33 $ (21) $ 94 $ 33 $ (60) NM
Adjusted Operating Expenses 101 49 84 17 38 (62%)
Provision for Loan Losses (4) (8) 26 (9) (30) NM
----- ----- ----- ----- -----
Core Income (Loss) Before Taxes (Benefits) (64) (62) (16) 25 (68) (6%)
Income Taxes (Benefits) (25) (26) (7) 8 (25) --
----- ----- ----- ----- -----
Core Income (Loss) $ (39) $ (36) $ (9) $ 17 $ (43) (10%)
===== ===== ===== ===== =====
(1) Includes unallocated marketing, staff expenses, and certain treasury
functions.
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 16
GLOBAL CORPORATE
CORPORATE AND INVESTMENT BANK
(In millions of dollars)
1Q 2001 VS.
1Q 2Q 3Q 4Q 1Q 1Q 2000 INCREASE/
2000 2000 2000 2000 2001 (DECREASE)
---------- ----------- ---------- ---------- ---------- ---------------
Revenues:
Commissions and Fees $ 1,339 $ 1,049 $ 1,021 $ 1,074 $ 1,045 (22%)
Asset Management and Administration Fees 500 546 551 572 536 7%
Investment Banking 999 964 1,123 1,001 1,235 24%
Principal Transactions 1,289 996 1,115 841 1,561 21%
Other Income 299 315 196 219 294 (2%)
------- ------- ------- ------- -------
Total Non-Interest Revenues 4,426 3,870 4,006 3,707 4,671 6%
Net Interest and Dividends 851 928 901 975 992 17%
------- ------- ------- ------- -------
Total Revenues, Net of Interest Expense 5,277 4,798 4,907 4,682 5,663 7%
------- ------- ------- ------- -------
Non-Interest Expenses:
Compensation and Benefits 2,412 2,415 2,542 2,462 2,895 20%
Communications 223 242 254 276 256 15%
Occupancy and Equipment 166 176 182 194 195 17%
Floor Brokerage and Other Production 162 161 184 182 213 31%
Other Operating and Administrative Expenses 198 283 252 265 301 52%
------- ------- ------- ------- -------
Total Non-Interest Expenses 3,161 3,277 3,414 3,379 3,860 22%
------- ------- ------- ------- -------
Provision for Credit Losses 90 160 113 392 230 156%
------- ------- ------- ------- -------
Core Income Before Taxes and Minority Interest 2,026 1,361 1,380 911 1,573 (22%)
Income Taxes and Minority Interest, Net of Tax 748 455 503 327 559 (25%)
------- ------- ------- ------- -------
Core Income $ 1,278 $ 906 $ 877 $ 584 $ 1,014 (21%)
======= ======= ======= ======= =======
Pre-tax profit margin 38.4% 28.4% 28.1% 19.5% 27.8%
Non-Compensation Expenses as a Percent of
Net Revenues 14.2% 18.0% 17.8% 19.6% 17.0%
Reclassified to conform to the current period's presentation.
Page 17
GLOBAL CORPORATE
SALOMON SMITH BARNEY
(In millions of dollars)
1Q 2001 VS.
1Q 2Q 3Q 4Q 1Q 1Q 2000 INCREASE/
2000 2000 2000 2000 2001 (DECREASE)
----------- -------------- ----------- ----------- ------------ --------------
CLIENT ASSETS (IN BILLIONS OF DOLLARS)
ASSETS UNDER FEE-BASED MANAGEMENT:
Consulting Group and Internally Managed $ 133.1 $ 135.8 $ 140.2 $ 145.6 $ 134.4 1%
Financial Consultant (FC) Managed 55.4 58.2 62.2 56.2 51.9 (6%)
------------- -------------- ----------- ----------- ------------
Total assets under fee-based management (1) $ 188.5 $ 194.0 $ 202.4 $ 201.8 $ 186.3 (1%)
============= ============== =========== =========== ============
Total client assets $ 1,032.2 $ 1,031.5 $ 1,047.3 $ 977.2 $ 910.5 (12%)
PRIVATE CLIENT
Registered FC's 11,414 11,686 11,903 12,127 12,432 9%
Annualized retail gross production per FC (000) $ 599 $ 498 $ 483 $ 463 $ 439 (27%)
Domestic retail offices 482 492 503 513 521 8%
INVESTMENT BANKING AND PUBLIC FINANCE
UNDERWRITING (FULL CREDIT TO BOOK
MANAGER):
DEBT AND EQUITY
Global volume (2) $ 91,182.3 $ 86,655.3 $ 83,873.5 $ 75,711.7 $ 121,771.1 34%
Global market share 10.1% 11.4% 10.7% 11.7% 12.0%
Rank 3 2 2 2 2
U.S. volume (3) $ 71,477.7 $ 62,452.2 $ 67,536.1 $ 60,262.1 $ 102,075.3 43%
U.S. market share 12.3% 12.9% 12.9% 13.7% 14.7%
Rank 3 2 2 1 2
MUNICIPALS
Volume (4) $ 4,875.2 $ 7,689.0 $ 6,120.1 $ 6,520.3 $ 8,754.8 80%
Market share 12.0% 13.9% 12.6% 11.8% 15.2%
Rank 1 1 1 2 1
CAPITAL MARKETS/RESEARCH
Number of stocks in which markets are made 1,366 1,391 1,561 1,824 1,779 30%
% of S&P Groups covered by research 99% 98% 95% 98% 99%
Total equity (in billions of dollars) (5) $ 9.9 $ 10.3 $ 10.7 $ 11.1 $ 11.8 19%
Return on equity (5) 41.1% 26.2% 26.7% 25.7% 28.4%
(1) Includes certain assets jointly managed with Citigroup Asset Management.
(2) Includes all non-convertible debt, Rule 144A non-convertible debt, Rule 144A
non-convertible preferred, non-convertible preferred, preferred, taxable
municipal debt, mortgage and asset backed debt.
(3) Includes all U.S. mortgage and asset backed debt, U.S. non-convertible debt,
U.S. Rule 144A non-convertible and U.S. taxable municipal debt, all U.S. common
stock, U.S. convertible debt and U.S. convertible preferred. Excludes all closed
end funds, 144A common stock, 144A convertible stock, and 144A convertible
preferred.
(4) Total long term excluding private placement.
(5) Total equity and return on equity (core income) for Salomon Smith Barney are
calculated on a legal entity basis.
Page 18
GLOBAL CORPORATE
EMERGING MARKETS CORPORATE BANKING AND GLOBAL TRANSACTION SERVICES
(In millions of dollars)
1Q 2001 VS.
1Q 2Q 3Q 4Q 1Q 1Q 2000 INCREASE/
2000 2000 2000 2000 2001 (DECREASE)
----------- ---------- ---------- ---------- ----------- ------------------
Total Revenues, Net of Interest Expense $ 1,600 $ 1,670 $ 1,669 $ 1,720 $ 1,896 19%
Adjusted Operating Expenses 944 1,000 1,008 1,050 1,128 19%
Provision for Loan Losses 87 80 24 1 47 (46%)
----------- ---------- ---------- ---------- -----------
Core Income Before Taxes and Minority Interest 569 590 637 669 721 27%
Income Taxes 208 216 232 240 263 26%
Minority Interest, Net of Tax - 3 8 5 4 -
----------- ---------- ---------- ---------- -----------
Core Income $ 361 $ 371 $ 397 $ 424 $ 454 26%
=========== ========== ========== ========== ===========
Average Assets (in billions of dollars) $ 98 $ 102 $ 107 $ 112 $ 115 17%
=========== ========== ========== ========== ===========
Return on Assets 1.48% 1.46% 1.48% 1.51% 1.60%
=========== ========== ========== ========== ===========
Reclassified to conform to the current period's presentation.
Page 19
GLOBAL CORPORATE
COMMERCIAL LINES
(In millions of dollars)
1Q 2Q 3Q 4Q
2000 2000 2000 2000
-------------- -------------- -------------- -------------
Total Revenues, Net of Interest Expense* $ 1,719 $ 1,788 $ 1,928 $ 2,062
Total Operating Expenses 397 403 380 519
Claims and Claim Adjustment Expenses 931 1,009 1,114 1,200
-------------- -------------- -------------- -------------
Core Income Before Taxes and Minority Interest 391 376 434 343
Income Taxes 102 96 117 86
Minority Interest, Net of Tax 42 8 - -
-------------- -------------- -------------- -------------
Core Income (1) $ 247 $ 272 $ 317 $ 257
============== ============== ============== =============
NET WRITTEN PREMIUMS BY MARKET: (2)
Commercial accounts $ 487.4 $ 457.4 $ 563.1 $ 591.0
Select accounts 387.3 406.8 382.4 398.9
Specialty accounts 332.5 481.0 463.6 478.3
National accounts 92.0 58.5 131.4 70.4
-------------- -------------- -------------- -------------
Total net written premiums (A) $ 1,299.2 $ 1,403.7 $ 1,540.5 $ 1,538.6
============== ============== ============== =============
STATUTORY RATIO DEVELOPMENT:
Earned premiums (B) $ 1,220.2 $ 1,275.0 $ 1,402.8 $ 1,471.4
Losses and loss adjustment expenses (C) 880.0 959.9 1,079.7 1,152.5
Other underwriting expenses (D) 367.1 424.8 409.4 432.3
-------------- -------------- -------------- -------------
Total deductions 1,247.1 1,384.7 1,489.1 1,584.8
-------------- -------------- -------------- -------------
Statutory underwriting loss $ (26.9) $ (109.7) $ (86.3) $ (113.4)
============== ============== ============== =============
STATUTORY COMBINED RATIO: (2), (3)
Loss and loss adjustment expense ratio (C / B) 72.1% 75.3% 77.0% 78.3%
Other underwriting expense ratio (D / A) 28.3% 30.3% 26.6% 28.1%
-------------- -------------- -------------- -------------
Combined ratio 100.4% 105.6% 103.6% 106.4%
============== ============== ============== =============
Net investment income (pre-tax) $ 451.3 $ 454.6 $ 435.6 $ 440.7
Effective tax rate on net investment income 26.8% 26.8% 26.5% 26.5%
Catastrophe losses, net of reinsurance (after-tax) $ - $ - $ - $ -
1Q 2001 VS.
1Q 1Q 2000 INCREASE/
2001 (DECREASE)
-------------- ------------------
Total Revenues, Net of Interest Expense* $ 1,970 15%
Total Operating Expenses 499 26%
Claims and Claim Adjustment Expenses 1,095 18%
--------------
Core Income Before Taxes and Minority Interest 376 (4%)
Income Taxes 98 (4%)
Minority Interest, Net of Tax - 100%)
--------------
Core Income (1) $ 278 13%
==============
NET WRITTEN PREMIUMS BY MARKET: (2)
Commercial accounts $ 546.9 12%
Select accounts 429.4 11%
Specialty accounts 556.8 67%
National accounts 126.2 37%
--------------
Total net written premiums (A) $ 1,659.3 28%
==============
STATUTORY RATIO DEVELOPMENT:
Earned premiums (B) $ 1,481.6 21%
Losses and loss adjustment expenses (C) 1,049.7 19%
Other underwriting expenses (D) 493.0 34%
--------------
Total deductions 1,542.7 24%
--------------
Statutory underwriting loss $ (61.1) (127%)
==============
STATUTORY COMBINED RATIO: (2), (3)
Loss and loss adjustment expense ratio (C / B) 70.8%
Other underwriting expense ratio (D / A) 29.7%
--------------
Combined ratio 100.5%
==============
Net investment income (pre-tax) $ 435.0 (4%)
Effective tax rate on net investment income 26.6%
Catastrophe losses, net of reinsurance (after-tax) $ 8.2 NM
(1) During April 2000, Travelers Insurance Group Inc. completed a cash tender
offer to purchase all the outstanding shares of Class A Common Stock of
Travelers Property Casualty Corp. at a price of $41.95 per share. Results
for the periods prior to April 20, 2000 are net of minority interest.
(2) The 2000 second quarter net written premiums include a $130.7 million
adjustment associated with the acquisition of the Reliance Surety
business. Excluding this transaction, the loss and loss adjustment expense
ratio, other underwriting expense ratio, and combined ratio for the 2000
second quarter were 75.3%, 29.2% and 104.5%, respectively. The 2001 first
quarter net written premiums include a $34.1 million adjustment due to the
termination of the Master Bond Liability Reinsurance Treaty as of 1/1/01.
(3) Before policyholder dividends.
* Excludes realized gains / (losses) on investments.
NM - Not meaningful
Reclassified to conform to the current period's presentation.
Page 20
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING
CITIGROUP ASSET MANAGEMENT
(In millions of dollars)
1Q 2Q 3Q
2000 2000 2000
-------- -------- ---------
Revenues:
Investment advisory, admin. & distribution fees $ 413 $ 468 $ 472
Unit Investment Trust revenues - net 12 7 16
Other revenues, net of interest expense 11 4 2
-------- -------- ---------
Total revenues, net of interest expense 436 479 490
-------- -------- ---------
Expenses:
Employee compensation and benefits 135 144 150
Mutual fund commission expense 29 34 26
Other expenses 114 148 153
-------- -------- ---------
Total expenses 278 326 329
-------- -------- ---------
Core income before taxes and minority interest 158 153 161
Income taxes and minority interest, net of tax 64 61 66
-------- -------- ---------
Core income $ 94 $ 92 $ 95
======== ======== =========
Pre-tax profit margin 36.2% 31.9% 32.9%
ASSETS UNDER MANAGEMENT BY PRODUCT TYPE (IN BILLIONS OF DOLLARS):
Money market and institutional liquidity funds:
Retail $ 86.5 $ 82.6 $ 86.8
Institutional 17.4 18.6 20.4
-------- -------- ---------
Total money market and institutional liquidity funds 103.9 101.2 107.2
-------- -------- ---------
Long-term mutual funds:
Equity / Balanced 54.7 54.6 55.9
Taxable Fixed Income 16.4 16.5 15.1
Tax Exempt Fixed Income 8.5 8.3 8.5
Annuities 5.8 5.8 6.1
-------- -------- ---------
Total long-term mutual funds 85.4 85.2 85.6
-------- -------- ---------
Managed accounts:
Private client 54.4 55.5 59.5
Institutional 97.8 96.7 94.0
Emerging Markets Pension Administration 1.1 4.5 4.9
-------- -------- ---------
Total managed accounts 153.3 156.7 158.4
-------- -------- ---------
Unit Investment Trusts held in client accounts 12.3 11.2 10.9
-------- -------- ---------
Alternative Investment Strategies 33.0 34.3 34.4
-------- -------- ---------
Total assets under management (1) $ 387.9 $ 388.6 $ 396.5
======== ======== =========
ASSETS UNDER MANAGEMENT BY CLIENT TYPE (IN BILLIONS OF DOLLARS):
Retail $ 236.2 $ 231.2 $ 240.6
Emerging Markets Pension Administration 1.1 4.5 4.9
Institutional (including Alternate Investment Strategies) 150.6 152.9 151.0
-------- -------- ---------
Total assets under management $ 387.9 $ 388.6 $ 396.5
======== ======== =========
Number of Morningstar 4- and 5-star funds 20 19 22
GLOBAL RETIREMENT SERVICES (IN BILLIONS OF DOLLARS):
Emerging Markets Pension Administration -
Assets Under Management (2) $ 13.9 $ 13.7 $ 13.8
Number of Participants / Affiliates (in millions) 5.9 6.1 6.2
CitiStreet Joint Venture - Assets Under Administration $ -- $ 189.2 $ 196.4
1Q 2001 VS.
4Q 1Q 1Q 2000 INCREASE/
2000 2001 (DECREASE)
------ ------ -------------------
Revenues:
Investment advisory, admin. & distribution fees $ 485 $ 491 19%
Unit Investment Trust revenues - net 4 7 (42%)
Other revenues, net of interest expense (3) 19 73%
------ ------
Total revenues, net of interest expense 486 517 19%
------ ------
Expenses:
Employee compensation and benefits 166 167 24%
Mutual fund commission expense 29 35 21%
Other expenses 158 156 37%
------ ------
Total expenses 353 358 29%
------ ------
Core income before taxes and minority interest 133 159 1%
Income taxes and minority interest, net of tax 55 63 (2%)
------ ------
Core income $ 78 $ 96 2%
====== ======
Pre-tax profit margin 27.4% 30.8%
ASSETS UNDER MANAGEMENT BY PRODUCT TYPE (IN BILLIONS OF DOLLARS):
Money market and institutional liquidity funds:
Retail $ 90.6 $ 84.7 (2%)
Institutional 23.9 31.1 79%
------ ------
Total money market and institutional liquidity funds 114.5 115.8 11%
------ ------
Long-term mutual funds:
Equity / Balanced 53.8 49.8 (9%)
Taxable Fixed Income 14.4 16.6 1%
Tax Exempt Fixed Income 8.9 9.3 9%
Annuities 6.0 5.9 2%
------ ------
Total long-term mutual funds 83.1 81.6 (4%)
------ ------
Managed accounts:
Private client 61.2 59.4 9%
Institutional 91.7 86.1 (12%)
Emerging Markets Pension Administration 5.4 6.1 NM
------ ------
Total managed accounts 158.3 151.6 (1%)
------ ------
Unit Investment Trusts held in client accounts 9.4 7.8 (37%)
------ ------
Alternative Investment Strategies 35.8 36.5 11%
------ ------
Total assets under management (1) $401.1 $393.3 1%
====== ======
ASSETS UNDER MANAGEMENT BY CLIENT TYPE (IN BILLIONS OF DOLLARS):
Retail $242.2 $231.2 (2%)
Emerging Markets Pension Administration 5.4 6.1 NM
Institutional (including Alternate Investment Strategies) 153.5 156.0 4%
------ ------
Total assets under management $401.1 $393.3 1%
====== ======
Number of Morningstar 4- and 5-star funds 22 23 15%
GLOBAL RETIREMENT SERVICES (IN BILLIONS OF DOLLARS):
Emerging Markets Pension Administration -
Assets Under Management (2) $ 14.3 $ 15.4 11%
Number of Participants / Affiliates (in millions) 6.5 6.8 15%
CitiStreet Joint Venture - Assets Under Administration $180.7 $183.5 NM
(1) Includes $31 billion for the 2000 first, second and third quarters, $30
billion for the fourth quarter of 2000 and $29 billion for the first
quarter of 2001 for Citigroup Private Bank clients.
(2) Includes assets under management for both majority- and minority-owned
pension fund administration businesses in Latin America.
NM - Not meaningful
Reclassified to conform to the current period's presentation.
Page 21
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING CITIGROUP
THE CITIGROUP PRIVATE BANK
(In millions of dollars)
1Q 2001 VS.
1Q 2Q 3Q 4Q 1Q 1Q 2000 INCREASE/
2000 2000 2000 2000 2001 (DECREASE)
------ ------ ------ ----- ------ -----------------
Total Revenues, Net of Interest Expense $ 362 $ 338 $ 337 $ 369 $ 389 7%
Adjusted Operating Expenses 213 210 214 333 234 10%
Provision for Loan Losses 22 3 (3) 2 2 (91%)
------ ------ ------ ------ ------
Core Income Before Taxes 127 125 126 134 153 20%
Income Taxes 47 46 46 49 56 19%
------ ------ ------ ------ ------
Core Income $ 80 $ 79 $ 80 $ 85 $ 97 21%
====== ====== ====== ====== ======
Average Assets (in billions of dollars) $ 23 $ 25 $ 26 $ 27 $ 25 9%
====== ====== ====== ====== ======
Return on Assets 1.40% 1.27% 1.22% 1.25% 1.57%
====== ====== ====== ====== ======
Client Business Volumes (in billions of dollars) $ 144 $ 149 $ 154 $ 153 $ 146 1%
====== ====== ====== ====== ======
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS):
- -------------------------------------------------
Proprietary Managed Assets $ 30 $ 31 $ 32 $ 32 $ 30 --
Other Assets under Fee based Management 4 4 4 4 5 25%
Banking and Fiduciary Deposits 28 28 28 31 31 11%
Loans 25 27 27 28 26 4%
Other, Principally Custody Accounts 57 59 63 58 54 (5%)
------ ------ ------ ------ ------
Total Client Business Volumes $ 144 $ 149 $ 154 $ 153 $ 146 1%
====== ====== ====== ====== ======
REVENUES:
- ---------
Customer Revenues
Net Interest Spread and Recurring
Fee Based Revenues $ 229 $ 237 $ 239 $ 252 $ 246 7%
Transaction Revenues 84 65 63 74 97 15%
------ ------ ------ ------ ------
Total Customer Revenues 313 302 302 326 343 10%
Other Revenues (Principally Allocated Equity
and Treasury Revenues) 49 36 35 43 46 (6%)
------ ------ ------ ------ ------
Total Revenues $ 362 $ 338 $ 337 $ 369 $ 389 7%
====== ====== ====== ====== ======
United States $ 121 $ 120 $ 124 $ 128 $ 130 7%
International 241 218 213 241 259 7%
------ ------ ------ ------ ------
$ 362 $ 338 $ 337 $ 369 $ 389 7%
====== ====== ====== ====== ======
Net Credit Loss Ratio (1) 0.18% 0.05% 0.03% 0.13% (0.01%)
(1) The net credit loss ratio in the 2000 fourth quarter includes an 8 basis point increase related to ICERC mandated write-offs.
Reclassified to conform to the current period's presentation.
PAGE 22
INVESTMENT ACTIVITIES CITIGROUP
(In millions of dollars)
1Q 2001 VS.
1Q 2Q 3Q 4Q 1Q 1Q 2000 INCREASE/
2000 2000 2000 2000 2001 (DECREASE)
--------- --------- --------- --------- --------- -----------------
REVENUES:
Proprietary Investments (1) $ 1,363 $ 294 $ 92 $ 228 $ (98) (107%)
LDC Debt Sales/Refinancing (112) 69 354 20 20 118%
Insurance Portfolio Realized Gains (Losses)(2) (235) 24 49 99 312 233%
--------- --------- --------- --------- ---------
Total Revenues $ 1,016 $ 387 $ 495 $ 347 $ 234 (77%)
========= ========= ========= ========= =========
CORE INCOME:
Proprietary Investments (1) $ 850 $ 175 $ 39 $ 126 $ (79) (109%)
LDC Debt Sales/Refinancing (69) 42 222 12 12 117%
Insurance Portfolio Realized Gains (Losses)(2) (148) 17 31 65 203 237%
--------- --------- --------- --------- ---------
Total Core Income $ 633 $ 234 $ 292 $ 203 $ 136 (79%)
========= ========= ========= ========= =========
PERIOD END ASSETS:
Proprietary Investments $ 7,804 $ 8,170 $ 7,997 $ 8,186 $ 7,789 --
LDC Debt Sales/Refinancing 3,285 3,002 2,651 2,118 2,069 (37%)
--------- --------- --------- --------- ---------
Total Period End Assets $ 11,089 $ 11,172 $ 10,648 $ 10,304 $ 9,858 (11%)
========= ========= ========= ========= =========
(1) Includes Venture Capital Activities and certain other corporate investments.
(2) Represents realized gains (losses) on investments held by insurance companies.
Reclassified to conform to the current period's presentation.
PAGE 23
CITIGROUP CONSOLIDATED STATEMENT OF INCOME CITIGROUP
(In millions of dollars)
1Q 2001 VS.
1Q 2Q 3Q 4Q 1Q 1Q 2000 INCREASE/
2000 2000 2000 2000 2001 (DECREASE)
--------- --------- --------- --------- --------- -----------------
REVENUES
Loan interest, including fees $ 8,449 $ 9,127 $ 9,717 $ 10,084 $ 10,004 18%
Other interest and dividends 5,994 6,666 7,172 7,730 7,169 20%
Insurance premiums 2,994 3,015 3,107 3,313 3,361 12%
Commissions and fees 4,124 4,035 4,077 4,127 4,132 --
Principal transactions 1,723 1,435 1,547 1,276 2,325 35%
Asset management and administration fees 1,284 1,332 1,331 1,391 1,389 8%
Realized gains (losses) from sales of investments (173) 280 508 191 451 NM
Other income 2,420 1,169 1,165 1,216 973 (60%)
--------- --------- --------- --------- ---------
Total revenues 26,815 27,059 28,624 29,328 29,804 11%
Interest expense 7,685 8,839 9,789 10,325 9,523 24%
--------- --------- --------- --------- ---------
Total revenues, net of interest expense 19,130 18,220 18,835 19,003 20,281 6%
--------- --------- --------- --------- ---------
BENEFITS, CLAIMS, AND CREDIT LOSSES
Policyholder benefits and claims 2,376 2,451 2,539 2,781 2,727 15%
Provision for credit losses 1,309 1,302 1,221 1,507 1,474 13%
--------- --------- --------- --------- ---------
Total benefits, claims, and credit losses 3,685 3,753 3,760 4,288 4,201 14%
--------- --------- --------- --------- ---------
OPERATING EXPENSES
Non-insurance compensation and benefits 4,587 4,630 4,838 4,578 5,329 16%
Insurance underwriting, acquisition and operating 918 883 876 966 999 9%
Restructuring and merger-related items 20 3 70 666 132 NM
Other operating 3,842 3,774 3,836 4,072 4,041 5%
--------- --------- --------- --------- ---------
Total operating expenses 9,367 9,290 9,620 10,282 10,501 12%
--------- --------- --------- --------- ---------
INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGE 6,078 5,177 5,455 4,433 5,579 (8%)
Provision for income taxes 2,167 1,818 1,958 1,582 1,990 (8%)
Minority interest, net of income taxes 55 20 13 11 9 (84%)
--------- --------- --------- --------- ---------
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING
CHANGE 3,856 3,339 3,484 2,840 3,580 (7%)
Cumulative effect of accounting change (1) -- -- -- -- (42) --
--------- --------- --------- --------- ---------
NET INCOME $ 3,856 $ 3,339 $ 3,484 $ 2,840 $ 3,538 (8%)
========= ========= ========= ========= =========
NM - Not meaningful
(1) First quarter 2001 accounting change refers to the adoption of Statement of Financial Accounting Standards No. 133,
"Accounting for Derivative Instruments and Hedging Activities", as amended (SFAS 133).
Reclassified to conform to the current period's presentation.
PAGE 24
CITIGROUP EARNINGS ANALYSIS - MANAGED BASIS CITIGROUP
(In millions of dollars)
1Q 2001 VS.
1Q 2Q 3Q 4Q 1Q 1Q 2000 INCREASE/
2000 2000 2000 2000 2001 (DECREASE)
--------- --------- --------- --------- --------- -----------------
Total Revenues, Net of Interest Expense $ 19,130 $ 18,220 $ 18,835 $ 19,003 $ 20,281 6%
Effect of Securitization Activities 662 574 573 650 766 16%
Housing Finance Unit Charge 47 -- -- -- -- --
--------- --------- --------- --------- ---------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 19,839 18,794 19,408 19,653 21,047 6%
Total Operating Expenses 9,367 9,290 9,620 10,282 10,501 12%
Restructuring and Merger-Related Items (1) (20) (3) (70) (666) (132) NM
Housing Finance Unit Charge (25) -- -- -- -- --
--------- --------- --------- --------- ---------
ADJUSTED OPERATING EXPENSES 9,322 9,287 9,550 9,616 10,369 11%
Benefits, Claims and Credit Losses 3,685 3,753 3,760 4,288 4,201 14%
Effect of Securitization Activities 662 574 573 650 766 16%
Housing Finance Unit Charge (40) -- -- -- -- --
--------- --------- --------- --------- ---------
ADJUSTED BENEFITS, CLAIMS AND CREDIT LOSSES 4,307 4,327 4,333 4,938 4,967 15%
CORE INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 6,210 5,180 5,525 5,099 5,711 (8%)
Taxes on Core Income 2,216 1,819 1,983 1,757 2,042 (8%)
Minority Interest, Net of Income Taxes 55 20 13 11 9 (84%)
--------- --------- --------- --------- ---------
CORE INCOME 3,939 3,341 3,529 3,331 3,660 (7%)
Restructuring and Merger-Related Items, after-tax (1) (12) (2) (45) (491) (80) NM
Housing Finance Unit Charge, after-tax (71) -- -- -- -- --
Cumulative Effect of Accounting Change (2) -- -- -- -- (42) --
--------- --------- --------- --------- ---------
NET INCOME $ 3,856 $ 3,339 $ 3,484 $ 2,840 $ 3,538 (8%)
========= ========= ========= ========= =========
(1) Restructuring and merger-related items in the 2000 fourth quarter primarily related to the acquisition of Associates First
Capital Corporation, and in the 2001 first quarter related principally to severance and costs associated with the reduction of
staff in the Global Corporate businesses.
(2) First quarter 2001 accounting change refers to the adoption of Statement of Financial Accounting Standards No. 133,
"Accounting for Derivative Instruments and Hedging Activities", as amended (SFAS 133).
NM - Not meaningful
PAGE 25
CONSUMER LOAN DELINQUENCY AMOUNTS, NET CREDIT LOSSES AND RATIOS CITIGROUP
(In millions of dollars, except loan amounts in billions)
----------------------------- EOP ----------------------------- AVERAGE
90 DAYS OR MORE PAST DUE (1) LOANS NET CREDIT LOSSES (1) LOANS
------------------------------------------------------------------------------------
1Q00 4Q00 1Q01 1Q01 1Q00 4Q00(2) 1Q01 1Q01
------- ------- ------- ------- ------- ------- ------- ------
CITIBANKING NORTH AMERICA $ 48 $ 35 $ 41 $ 7.0 $ 17 $ 16 $ 15 $ 7.0
Ratio 0.68% 0.48% 0.59% 1.00% 0.90% 0.85%
MORTGAGE BANKING 733 846 957 45.2 15 28 6 44.7
Ratio 2.28% 2.01% 2.14% 0.19% 0.27% 0.06%
N.A. BANKCARDS 1,424 1,573 1,994 99.7 980 1,051 1,196 100.2
Ratio 1.65% 1.54% 2.00% 4.65% 4.22% 4.84%
OTHER CARDS 24 6 6 1.8 11 29 12 1.6
Ratio 1.24% 0.35% 0.32% 2.62% 6.44% 2.90%
CITIFINANCIAL 1,044 1,272 1,599 58.0 353 360 363 57.6
Ratio 2.11% 2.23% 2.77% 2.92% 2.57% 2.57%
WESTERN EUROPE 899 835 785 16.8 80 101 82 17.3
Ratio 5.31% 4.78% 4.68% 1.88% 2.40% 1.92%
CEEMEA 40 32 33 2.3 12 11 9 2.2
Ratio 2.16% 1.37% 1.40% 2.60% 2.10% 1.66%
ASIA (EXCLUDING JAPAN) 433 335 334 21.2 70 65 61 21.7
Ratio 1.92% 1.51% 1.58% 1.24% 1.18% 1.14%
JAPAN 103 101 107 13.4 88 131 135 13.5
Ratio 0.99% 0.73% 0.81% 3.68% 3.81% 4.06%
LATIN AMERICA 333 250 318 6.7 90 98 71 6.8
Ratio 4.58% 3.66% 4.76% 4.77% 5.58% 4.24%
GLOBAL PRIVATE BANK (3) 87 61 65 24.4 10 8 (1) 24.5
Ratio 0.37% 0.23% 0.27% 0.18% 0.13% -0.01%
OTHER 27 24 24 3.1 1 4 (18) 2.9
------- ------- ------- ------- ------- ------- ------- ------
TOTAL MANAGED 5,195 5,370 6,263 299.6 1,727 1,902 1,931 300.0
Ratio 1.99% 1.77% 2.09% 2.69% 2.56% 2.61%
(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) As a result of the adoption of revised FFIEC policies, the net credit loss ratio in the 2000 fourth quarter includes an
increase of 10 bps in Citibanking North America, 16 bps in Mortgage Banking, 368 bps in Other Cards, 24 bps in Western Europe,
59 bps in CEEMEA, and 232 bps in Latin America.
(3) The net credit loss ratio includes an 8 bps increase in the 2000 fourth quarter due to ICERC mandated write-offs.
Reclassified to conform to the current period's presentation.
PAGE 26
DETAILS OF CREDIT LOSS EXPERIENCE CITIGROUP
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q
2000 2000 2000 2000 2001
-------- -------- -------- -------- --------
ALLOWANCE FOR CREDIT LOSSES AT BEGINNING OF PERIOD $ 8,853 $ 8,713 $ 8,852 $ 8,900 $ 8,961
-------- -------- -------- -------- --------
PROVISION FOR CREDIT LOSSES
Consumer 1,092 1,062 1,078 1,113 1,197
Commercial 217 240 143 394 277
-------- -------- -------- -------- --------
1,309 1,302 1,221 1,507 1,474
-------- -------- -------- -------- --------
GROSS CREDIT LOSSES
Consumer 1,284 1,290 1,266 1,512 1,364
Commercial 198 252 169 287 331
-------- -------- -------- -------- --------
1,482 1,542 1,435 1,799 1,695
-------- -------- -------- -------- --------
CREDIT RECOVERIES
Consumer 209 246 229 245 199
Commercial 24 27 35 49 54
-------- -------- -------- -------- --------
233 273 264 294 253
-------- -------- -------- -------- --------
NET CREDIT LOSSES 1,249 1,269 1,171 1,505 1,442
-------- -------- -------- -------- --------
Other -- net (200) 106 (2) 59 (36)
-------- -------- -------- -------- --------
ALLOWANCE FOR CREDIT LOSSES AT END OF PERIOD $ 8,713 $ 8,852 $ 8,900 $ 8,961 $ 8,957
======== ======== ======== ======== ========
Net consumer credit losses $ 1,075 $ 1,044 $ 1,037 $ 1,267 $ 1,165
As a percentage of average consumer loans 2.23% 2.07% 1.89% 2.25% 2.10%
Net commercial credit losses $ 174 $ 225 $ 134 $ 238 $ 277
As a percentage of average commercial loans 0.59% 0.72% 0.40% 0.69% 0.81%
ALLOWANCE FOR CREDIT LOSSES
- ---------------------------
Consumer $ 5,040 $ 5,062 $ 5,105 $ 4,946 $ 4,956
Commercial 3,673 3,790 3,795 4,015 4,001
-------- -------- -------- -------- --------
Total Allowance for Credit Losses $ 8,713 $ 8,852 $ 8,900 $ 8,961 $ 8,957
======== ======== ======== ======== ========
ALLOWANCE AS A PERCENT OF TOTAL LOANS
Consumer 2.56% 2.39% 2.30% 2.16% 2.24%
Commercial 2.95% 2.83% 2.72% 2.90% 2.75%
Total 2.71% 2.56% 2.46% 2.44% 2.44%
PAGE 27
CITIGROUP SUPPLEMENTAL DATA CITIGROUP
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q
2000 2000 2000 2000 2001
-------- -------- -------- -------- --------
CASH-BASIS AND RENEGOTIATED LOANS
- ---------------------------------
COMMERCIAL CASH-BASIS LOANS
Collateral Dependent (at lower of cost or collateral value) (1) $ 521 $ 494 $ 464 $ 574 $ 755
Other 1,218 1,428 1,515 1,580 1,889
-------- -------- -------- -------- --------
Total Commercial Cash-Basis Loans $ 1,739 $ 1,922 $ 1,979 $ 2,154 $ 2,644
======== ======== ======== ======== ========
COMMERCIAL CASH-BASIS LOANS
Emerging Markets Corporate Banking and Global Transaction Services $ 1,066 $ 1,132 $ 1,171 $ 1,148 $ 1,205
Corporate and Investment Bank 603 749 764 960 1,376
Insurance Subsidiaries 59 38 40 44 55
Investment Activities 11 3 4 2 8
-------- -------- -------- -------- --------
Total Commercial Cash-Basis Loans $ 1,739 $ 1,922 $ 1,979 $ 2,154 $ 2,644
======== ======== ======== ======== =========
COMMERCIAL RENEGOTIATED LOANS $ 795 $ 783 $ 782 $ 943 $ 1,059
======== ======== ======== ======== ========
CONSUMER LOANS ON WHICH ACCRUAL OF INTEREST
HAS BEEN SUSPENDED $ 3,330 $ 3,311 $ 3,227 $ 3,384 $ 3,618
======== ======== ======== ======== ========
OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED
- ---------------------------------------------
ASSETS
- ------
Consumer (2) $ 370 $ 380 $ 423 $ 366 $ 268
-------- -------- -------- -------- --------
Emerging Markets Corporate Banking and Global Transaction Services 43 43 42 74 65
Corporate and Investment Bank 141 135 122 115 108
Insurance Subsidiaries 310 114 113 102 123
-------- -------- -------- -------- --------
Total Commercial (2) 494 292 277 291 296
-------- -------- -------- -------- --------
Corporate/Other 9 8 8 8 8
-------- -------- -------- -------- --------
TOTAL OTHER REAL ESTATE OWNED $ 873 $ 680 $ 708 $ 665 $ 572
======== ======== ======== ======== ========
OTHER REPOSSESSED ASSETS (3) $ 220 $ 253 $ 236 $ 192 $ 360
======== ======== ======== ======== ========
(1) A cash-basis loan is defined as collateral dependent when repayment is expected to be provided solely by the underlying
collateral and there are no other available and reliable sources of repayment, in which case the loans are written down to the
lower of cost or collateral value.
(2) Represents repossessed real estate, carried at lower of cost or fair value, less costs to sell.
(3) Primarily commercial transportation equipment and manufactured housing, carried at fair value less costs to sell.
PAGE 28
INSURANCE INVESTMENT PORTFOLIO (1) CITIGROUP
(In millions of dollars)
1Q 2001 VS.
1Q 2Q 3Q 4Q 1Q 1Q 2000 INCREASE/
2000 2000 2000 2000 2001 (DECREASE)
--------- --------- --------- --------- --------- -----------------
Fixed-income investments:
Available for sale, at market:
Mortgage-backed securities - principally
obligations of U.S. Government agencies $ 10,422 $ 10,430 $ 10,760 $ 11,619 $ 13,032 25%
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies 3,439 3,063 3,176 3,247 3,099 (10%)
Corporates (including redeemable preferreds) 28,499 29,124 28,810 28,894 30,872 8%
Obligations of states and political subdivisions 10,412 10,311 10,435 10,784 11,349 9%
Debt securities issued by foreign governments 1,623 1,700 1,966 1,607 1,368 (16%)
Held to maturity, at amortized cost 32 31 30 29 29 (9%)
--------- --------- --------- --------- ---------
Total fixed income 54,427 54,659 55,177 56,180 59,749 10%
Equity securities, at market 2,301 2,209 2,075 2,326 2,443 6%
Short-term and other 6,943 6,848 8,215 8,477 8,029 16%
--------- --------- --------- --------- ---------
Total investments held by Insurance companies $ 63,671 $ 63,716 $ 65,467 $ 66,983 $ 70,221 10%
========= ========= ========= ========= =========
After tax unrealized gains / (losses) on invested assets $ (290) $ (461) $ (56) $ 531 $ 793 NM
========= ========= ========= ========= =========
(1) Includes investments held by insurance companies.
NM - Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 29
GLOBAL CONSUMER CITIGROUP
GLOBAL CARDS SUPPLEMENTAL DATA
(In millions of dollars)
1Q 2001 VS.
1Q 2Q 3Q 4Q 1Q 1Q 2000 INCREASE/
2000 2000 2000 2000 2001 (DECREASE)
---------- ---------- ---------- ---------- ---------- -----------------
Adjusted Revenues, Net of Interest Expense $ 3,112 $ 3,157 $ 3,322 $ 3,515 $ 3,598 16%
Adjusted Operating Expenses 1,258 1,283 1,314 1,343 1,333 6%
Adjusted Provision for Loan Losses (1) 1,098 1,058 1,055 1,162 1,321 20%
---------- ---------- ---------- ---------- ----------
Core Income Before Taxes 756 816 953 1,010 944 25%
Income Taxes 278 300 346 357 346 24%
---------- ---------- ---------- ---------- ----------
Core Income $ 478 $ 516 $ 607 $ 653 $ 598 25%
========== ========== ========== ========== ==========
Managed Average Assets (in billions of dollars) $ 100 $ 104 $ 111 $ 115 $ 117 17%
========== ========== ========== ========== ==========
Return on Managed Assets 1.92% 2.00% 2.18% 2.26% 2.07%
========== ========== ========== ========== ==========
KEY INDICATORS
- --------------
(in billions of dollars)
End of Period Managed Receivables $ 98.4 $ 104.9 $ 110.2 $ 115.8 $ 112.1 14%
Total EOP Open Accounts (in millions) 90.6 96.3 102.3 104.0 104.8 16%
Total Sales $ 60.0 $ 67.8 $ 67.8 $ 69.4 $ 62.7 5%
Coincident Net Credit Loss Ratio % 4.57% 4.22% 3.90% 4.19% 4.73%
Loans 90+ Days Past Due % 1.70% 1.49% 1.51% 1.53% 1.97%
GEOGRAPHIC DISTRIBUTION
- -----------------------
CORE INCOME
- -----------
North America $ 382 $ 390 $ 494 $ 529 $ 469 23%
International 96 126 113 124 129 34%
---------- ---------- ---------- ---------- ----------
Total $ 478 $ 516 $ 607 $ 653 $ 598 25%
========== ========== ========== ========== ==========
AVERAGE LOANS
- -------------
North America $ 86.3 $ 90.1 $ 96.6 $ 100.8 $ 101.8 18%
International 10.1 10.3 10.5 10.5 10.1 --
---------- ---------- ---------- ---------- ----------
Total $ 96.4 $ 100.4 $ 107.1 $ 111.3 $ 111.9 16%
========== ========== ========== ========== ==========
TOTAL EOP OPEN ACCOUNTS (IN MILLIONS)
- -------------------------------------
North America 79.5 84.9 90.5 91.8 92.8 17%
International 11.1 11.4 11.8 12.2 12.0 8%
---------- ---------- ---------- ---------- ----------
Total 90.6 96.3 102.3 104.0 104.8 16%
========== ========== ========== ========== ==========
TOTAL SALES
- -----------
North America $ 51.6 $ 58.7 $ 58.5 $ 60.0 $ 54.4 5%
International 8.4 9.1 9.3 9.4 8.3 (1%)
---------- ---------- ---------- ---------- ----------
Total $ 60.0 $ 67.8 $ 67.8 $ 69.4 $ 62.7 5%
========== ========== ========== ========== ==========
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
- -------------------------------------------
North America $ 990 $ 961 $ 956 $ 1,080 $ 1,207 22%
International 105 93 94 93 99 (6%)
---------- ---------- ---------- ---------- ----------
Total $ 1,095 $ 1,054 $ 1,050 $ 1,173 $ 1,306 19%
========== ========== ========== ========== ==========
(1) On a managed basis.
Reclassified to conform to the current period's presentation.
PAGE 30
GLOBAL CONSUMER CITIGROUP
GLOBAL CONSUMER FINANCE SUPPLEMENTAL DATA
(In millions of dollars)
1Q 2001 VS.
1Q 2Q 3Q 4Q 1Q 1Q 2000 INCREASE/
2000 2000 2000 2000 2001 (DECREASE)
------- ------- ------- ------- ------- -----------------
Adjusted Revenues, Net of Interest Expense $1,843 $1,937 $1,967 $2,138 $2,199 19%
Adjusted Operating Expenses 792 827 823 924 931 18%
Adjusted Provision for Loan Losses (1) 559 536 540 608 642 15%
------- ------- ------- ------- -------
Core Income Before Taxes 492 574 604 606 626 27%
Income Taxes 183 215 225 219 232 27%
------- ------- ------- ------- -------
Core Income $ 309 $ 359 $ 379 $ 387 $ 394 28%
======= ======= ======= ======= =======
Managed Average Assets (in billions of dollars) $ 65 $ 69 $ 74 $ 79 $ 81 25%
======= ======= ======= ======= =======
Return on Managed Assets 1.91% 2.09% 2.04% 1.95% 1.97%
======= ======= ======= ======= =======
Consumer Finance Receivables (in billions of dollars) $ 60.9 $ 64.0 $ 66.4 $ 70.1 $ 72.7 19%
Number of Offices $3,836 $3,877 $3,979 $4,042 $3,762 (2%)
Net Credit Loss Ratio (1) 3.23% 2.87% 2.80% 3.15% 3.07%
Loans 90+Days Past Due:
In millions of dollars $1,255 $1,232 $1,282 $1,475 $1,806 44%
% 2.06% 1.92% 1.93% 2.10% 2.48%
GEOGRAPHIC DISTRIBUTION
CORE INCOME
North America $ 179 $ 205 $ 213 $ 213 $ 212 18%
International 130 154 166 174 182 40%
------- ------- ------- ------- -------
Total $ 309 $ 359 $ 379 $ 387 $ 394 28%
======= ======= ======= ======= =======
CONSUMER FINANCE RECEIVABLES
North America $ 49.3 $ 51.6 $ 53.2 $ 55.3 $ 57.7 17%
International 11.7 12.4 13.2 14.8 15.0 28%
------- ------- ------- ------- -------
Total $ 61.0 $ 64.0 $ 66.4 $ 70.1 $ 72.7 19%
======= ======= ======= ======= =======
NUMBER OF OFFICES
North America 2,767 2,738 2,699 2,720 2,430 (12%)
International 1,069 1,139 1,280 1,322 1,332 25%
------- ------- ------- ------- -------
Total 3,836 3,877 3,979 4,042 3,762 (2%)
======= ======= ======= ======= =======
PAGE 31
GLOBAL CORPORATE CITIGROUP
SUPPLEMENTAL PRODUCT AND REGIONAL RESULTS
(In millions of dollars)
1Q 2001 VS.
1Q 2Q 3Q 4Q 1Q 1Q 2000 INCREASE/
2000 2000 2000 2000 2001 (DECREASE)
-------- -------- -------- -------- -------- -----------------
PRODUCT VIEW
- ------------
TOTAL REVENUE
Global Corporate Finance (1) $ 3,861 $ 3,612 $ 3,683 $ 3,548 $ 4,774 24%
Transaction Services (2) 825 878 911 924 922 12%
Private Client 1,916 1,690 1,681 1,628 1,547 (19%)
CitiCapital 275 288 301 302 316 15%
Commercial Lines 1,719 1,788 1,928 2,062 1,970 15%
-------- -------- -------- -------- --------
Total Global Corporate $ 8,596 $ 8,256 $ 8,504 $ 8,464 $ 9,529 11%
======== ======== ======== ======== ========
CORE INCOME
Global Corporate Finance (1) $ 1,119 $ 872 $ 867 $ 817 $ 1,141 2%
Transaction Services (2) 104 142 148 130 117 13%
Private Client 359 254 250 207 191 (47%)
CitiCapital 57 9 9 (146) 19 (67%)
Commercial Lines 247 272 317 257 278 13%
-------- -------- -------- -------- --------
Total Global Corporate $ 1,886 $ 1,549 $ 1,591 $ 1,265 $ 1,746 (7%)
======== ======== ======== ======== ========
REGIONAL VIEW
- -------------
TOTAL REVENUE
JENA (3) $ 7,170 $ 6,826 $ 7,085 $ 7,040 $ 7,915 10%
Emerging Markets 1,426 1,430 1,419 1,424 1,614 13%
-------- -------- -------- -------- --------
Total Global Corporate $ 8,596 $ 8,256 $ 8,504 $ 8,464 $ 9,529 11%
======== ======== ======== ======== ========
CORE INCOME
JENA (3) $ 1,465 $ 1,168 $ 1,184 $ 845 $ 1,262 (14%)
Emerging Markets 421 381 407 420 484 15%
-------- -------- -------- -------- --------
Total Global Corporate $ 1,886 $ 1,549 $ 1,591 $ 1,265 $ 1,746 (7%)
======== ======== ======== ======== ========
TRADING RELATED REVENUE BY PRODUCT
- ----------------------------------
Fixed Income $ 695 $ 533 $ 716 $ 425 $ 1,253 80%
Equities 508 436 391 394 472 (7%)
Foreign Exchange 339 352 220 332 391 15%
All Other 104 63 82 52 65 (38%)
-------- -------- -------- -------- --------
Total Trading Related Revenue $ 1,646 $ 1,384 $ 1,409 $ 1,203 $ 2,181 33%
======== ======== ======== ======== ========
TRADING RELATED REVENUE BY INCOME STATEMENT LINE
- ------------------------------------------------
Principal Transactions $ 1,512 $ 1,250 $ 1,394 $ 1,119 $ 2,090 38%
Net Interest Revenue 134 134 15 84 91 (32%)
-------- -------- -------- -------- --------
Total Trading Related Revenue $ 1,646 $ 1,384 $ 1,409 $ 1,203 $ 2,181 33%
======== ======== ======== ======== ========
(1) Global Corporate Finance includes Global Fixed Income, FX and Structured Products, Global Equities, Global Investment Banking,
Emerging Markets (EM) Sales & Trading, EM Local Finance, Loan Portfolio, Phibro, Robinson Humphrey, Municipals & Stock Loans.
(2) Transaction Services includes e-Business, Cash Management, Trade Finance and Worldwide Securities Services.
(3) JENA includes Japan, Western Europe and North America.
NM Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 32
CITIGROUP EMERGING MARKETS - EXCLUDING INVESTMENT ACTIVITIES CITIGROUP
(In millions of dollars)
1Q 2001 VS.
1Q 2Q 3Q 4Q 1Q 1Q 2000 INCREASE/
2000 2000 2000 2000 2001 (DECREASE)
-------- -------- -------- -------- -------- -----------------
REVENUE
Asia $ 1,196 $ 1,150 $ 1,110 $ 1,114 $ 1,201 --
Latin America 1,163 1,148 1,087 1,170 1,213 4%
CEEMEA 450 485 540 579 665 48%
Other 29 32 34 34 24 (17%)
-------- -------- -------- -------- --------
TOTAL $ 2,838 $ 2,815 $ 2,771 $ 2,897 $ 3,103 9%
======== ======== ======== ======== ========
CORE INCOME
Asia $ 309 $ 297 $ 281 $ 268 $ 337 9%
Latin America 269 228 212 239 256 (5%)
CEEMEA 115 110 128 138 181 57%
Other 7 (5) 21 41 (17) NM
-------- -------- -------- -------- --------
TOTAL $ 700 $ 630 $ 642 $ 686 $ 757 8%
======== ======== ======== ======== ========
CORE INCOME
ASIA:
Consumer (1) $ 140 $ 138 $ 138 $ 133 $ 150 7%
Corporate 148 145 133 127 159 7%
Asset Management & Private Banking 21 14 10 8 28 33%
-------- -------- -------- -------- --------
TOTAL ASIA $ 309 $ 297 $ 281 $ 268 $ 337 9%
======== ======== ======== ======== ========
LATIN AMERICA:
Consumer (1) $ 67 $ 43 $ 35 $ 72 $ 34 (49%)
Corporate 173 147 145 136 184 6%
Asset Management & Private Banking 29 38 32 31 38 31%
-------- -------- -------- -------- --------
TOTAL LATIN AMERICA $ 269 $ 228 $ 212 $ 239 $ 256 (5%)
======== ======== ======== ======== ========
CEEMEA:
Consumer (1) $ 15 $ 16 $ 16 $ 13 $ 18 20%
Corporate 93 94 108 116 158 70%
Asset Management & Private Banking 7 -- 4 9 5 (29%)
-------- -------- -------- -------- --------
TOTAL CEEMEA $ 115 $ 110 $ 128 $ 138 $ 181 57%
======== ======== ======== ======== ========
OTHER $ 7 $ (5) $ 21 $ 41 $ (17) NM
======== ======== ======== ======== ========
EMERGING MARKETS:
Consumer (1) $ 222 $ 197 $ 189 $ 218 $ 202 (9%)
Corporate 421 381 407 420 484 15%
Asset Management & Private Banking 57 52 46 48 71 25%
-------- -------- -------- -------- --------
TOTAL EMERGING MARKETS $ 700 $ 630 $ 642 $ 686 $ 757 8%
======== ======== ======== ======== ========
(1) Includes Associates.
NM - Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 33
GLOBAL WEALTH MANAGEMENT CITIGROUP
SUPPLEMENTAL DATA
(In millions of dollars)
1Q 2001 VS.
1Q 2Q 3Q 4Q 1Q 1Q 2000 INCREASE/
2000 2000 2000 2000 2001 (DECREASE)
-------- -------- -------- -------- -------- -----------------
REVENUES
Private Client $ 1,916 $ 1,690 $ 1,681 $ 1,628 $ 1,547 (19%)
Citigroup Asset Management 436 479 490 486 517 19%
The Citigroup Private Bank 362 338 337 369 389 7%
Global Consumer Investment, Life Insurance & Annuity Products 1,670 1,620 1,531 1,616 1,756 5%
-------- -------- -------- -------- --------
TOTAL GLOBAL WEALTH MANAGEMENT $ 4,384 $ 4,127 $ 4,039 $ 4,099 $ 4,209 (4%)
======== ======== ======== ======== ========
CORE INCOME
Private Client $ 359 $ 254 $ 250 $ 207 $ 191 (47%)
Citigroup Asset Management 94 92 95 78 96 2%
The Citigroup Private Bank 80 79 80 85 97 21%
Global Consumer Investment, Life Insurance & Annuity Products 349 347 331 347 349 --
-------- -------- -------- -------- --------
TOTAL GLOBAL WEALTH MANAGEMENT $ 882 $ 772 $ 756 $ 717 $ 733 (17%)
======== ======== ======== ======== ========
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS)
Private Client - Client Assets $ 1,032 $ 1,032 $ 1,047 $ 977 $ 911 (12%)
Citigroup Asset Management -Assets Under Management 388 389 397 401 393 1%
PBG - Client Business Volumes 144 149 154 153 146 1%
Global Consumer Investment, Life Insurance & Annuity Products 593 599 608 608 609 3%
Less Cross-Sell Volumes Included Above (294) (300) (309) (308) (296) 1%
-------- -------- -------- -------- --------
TOTAL CLIENT BUSINESS VOLUMES $ 1,863 $ 1,869 $ 1,897 $ 1,831 $ 1,763 (5%)
======== ======== ======== ======== ========
Note: Global Wealth Management includes businesses that provide services related to the accumulation and management of wealth.
PAGE 34
CITICORP SUPPLEMENTAL DATA (1)
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q
2000 2000 2000 2000 2001
---------- ---------- ---------- ---------- ----------
NET INTEREST REVENUE STATISTICS
- -------------------------------
(TAXABLE EQUIVALENT BASIS)
- --------------------------
Net Interest Revenue $ 5,295 $ 5,414 $ 5,577 $ 5,941 $ 6,240
Effect of Securitization Activities 1,442 1,304 1,299 1,329 1,524
---------- ---------- ---------- ---------- ----------
Total Adjusted $ 6,737 $ 6,718 $ 6,876 $ 7,270 $ 7,764
========== ========== ========== ========== ==========
Average Interest Earning Assets (in billions of dollars) $ 399.5 $ 425.5 $ 449.7 $ 462.3 $ 478.7
Effect of Securitization Activities 58.0 55.8 55.4 61.0 62.2
---------- ---------- ---------- ---------- ----------
Total Adjusted $ 457.5 $ 481.3 $ 505.1 $ 523.3 $ 540.9
========== ========== ========== ========== ==========
Net Interest Margin (%) 5.33% 5.12% 4.93% 5.11% 5.29%
Effect of Securitization Activities 0.59% 0.49% 0.49% 0.42% 0.53%
---------- ---------- ---------- ---------- ----------
Total Adjusted 5.92% 5.61% 5.42% 5.53% 5.82%
========== ========== ========== ========== ==========
(1) Excludes manufactured housing and Arcadia's previously securitized receivables.
PAGE 35
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: April 17, 2001 CITIGROUP INC.
By: /s/ Roger W. Trupin
--------------------
Name: Roger W. Trupin
Title: Controller