U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------------
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) July 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 July 16, 2001 Citigroup Inc. reported core income for the second quarter
ended June 30, 2001, of $3.79 billion, or $0.74 per share, diluted, a 14%
increase from the second quarter of 2000. Net income for the second quarter of
$3.54 billion, or $0.69 per share, included a $116 million after tax charge
related to the implementation of a new accounting rule (EITF 99-20) providing
guidance on the valuation of certain asset-backed securities, as well as a $133
million after tax charge for severance and other costs in connection with
staffing reductions in each major business segment.
"The strength and diversity of our global franchises produced results that once
again proved Citigroup's ability to increase revenue and earnings, even in light
of the difficult market conditions," said Sanford I. Weill, Chairman and Chief
Executive Officer of Citigroup. "Revenues grew 8%, led by 12% growth in the
Global Consumer segment. Given the recent economic trends, we are particularly
pleased with 14% growth in our Core EPS."
"Our ability to deliver consistent earnings growth was further shown by strong
performances in a number of our businesses, including a 40% increase in
CitiFinancial, a 17% increase in North America Cards, an 18% increase in the
Private Bank, and 28% growth in our Emerging Markets businesses. Despite a
difficult environment, our Corporate Finance business delivered 12% earnings
growth as it continued to increase its underwriting market share. We also
benefited from disciplined expense management, resulting in overall expense
growth of 1% versus last year. We exceeded our return targets, with a return on
common equity of 22.4% in the quarter. We also continue to pursue new areas of
growth as shown by our pending acquisitions of EAB and Banacci."
Highlights of the quarter included:
o Strengthening global strategic franchises:
- Global Consumer Finance income grew 38%, driven by 13% receivables
growth, reflecting strong organic growth in North America and Japan,
as well as significant expense reductions from the consolidation of
the Associates branches.
- Emerging Markets income increased 28%, driven primarily by strong
trading-related revenues, tight cost control and stable credit.
Citigroup continued to build its franchises, announcing its
partnership with Grupo Financiero Banamex-Accival ("Banacci"), the
leading financial institution in Mexico, and launching its tender
offer for the shares of Banacci in July. Citigroup was also named
Best Emerging Markets Bank by GLOBAL FINANCE Magazine.
- Global Cards income grew 11%, primarily reflecting 11% receivables
growth and strong expense control. Cards income in Asia and Latin
America declined partly due to weakening currencies. The business
further enhanced its market leadership position with share gains in
Taiwan, Mexico and Korea, as well as the Peoples Bank portfolio
acquisition in the United Kingdom.
- Citigroup's Corporate and Investment Bank continued to build its
fixed income and equity underwriting market share, ranking #1 in
U.S. investment grade debt with a 23% market share, #2 in High Yield
debt with a 14% share, #5 in U.S. equities with a 14% share, #1 in
Japanese equities with a 58% share, and #2 in European debt with a
7% market share. Citigroup participated in a number of significant
transactions during the quarter, including lead roles in the $8.7
billion Kraft IPO, the second largest IPO ever in the U.S., and the
$11.9 billion WorldCom debt offering. In addition, EUROMONEY
magazine named Citigroup "Best Bank" and "Best in Foreign Exchange."
o Total expenses of $9.4 billion increased 1% from the second quarter of
2000. Compared to the first quarter of 2001, total expenses decreased $1.0
billion, or 10%, with each major business segment reporting decreases.
o Compared to the first quarter of 2001, overall credit loss rates increased
modestly. Losses in consumer loans increased 25 basis points, as flat
performance in CitiFinancial and the international portfolios was offset
by an increase of 67 basis points in North America Cards, driven by
deterioration in the general credit environment and increased
bankruptcies. Ninety-day delinquency rates in North America Cards improved
modestly. Credit loss rates in the Global Corporate segment remained flat,
while Cash Basis Loans increased 9%.
o Cross-marketing continued to deliver improving results. The share of sales
of our own investment products through Citigroup distribution channels
reached a record 60% for the six months to June 30, 2001, up from 44%
during the same period last year, maintaining consistent year-on-year
sales in a declining general market environment. For the first six months
of 2001, sales of investment banking products to Global Relationship
Banking clients increased 21% to approximately $1.3 billion and Global
Relationship clients represented 35% of new national accounts sales in
Commercial Lines.
o Quarter-end total equity, including trust preferred securities, increased
to $75.0 billion.
GLOBAL CONSUMER
Core income of $1.89 billion, up 19%. Highlights included:
o Global Consumer revenue increased 12% to $10.7 billion, while
expense growth was held to 2%.
o CitiFinancial income rose 40% on substantial cost savings from the
Associates integration, as well as 13% receivables growth and a
lower cost of funds. Cost savings from the integration of Associates
are running well ahead of targets. CitiFinancial
continues to focus on raising standards in the industry and recently
announced that it would stop selling single premium credit
insurance. In addition, after instituting a stringent new broker
code of conduct, it severed relationships with more than 1,000
mortgage brokers.
o North America Cards income rose 17%, driven by 13% growth in
receivables and a 95 basis point increase in the net interest
margin, more than offsetting a 119 basis point deterioration in the
net credit loss ratio to 5.51%.
o Japan income rose 32% led by double-digit growth in consumer finance
receivables.
o Emerging Markets Consumer income increased 10% as a result of growth
in new markets, in addition to improved credit and expense controls.
o Travelers Life and Annuity income increased 14% as a result of
strong group annuity volumes and higher net investment income.
Despite a declining market, individual annuity sales were up 5% from
last year, resulting in increased market share.
GLOBAL CORPORATE
Core income of $1.67 billion, up 10%. Highlights included:
o Global Corporate revenues of $8.6 billion increased 4%, while
expenses decreased 2%. Expenses were down $886 million or 16% from
the first quarter of 2001.
o Income from Emerging Markets Corporate and Global Transaction
Services increased 35% to a record $467 million, driven by strong
trading-related revenues, continued expense control and lower credit
costs.
o The Corporate & Investment Bank posted 2% earnings growth over the
second quarter of 2000 on the strength of its product and geographic
diversity, as well as continued expense controls and lower incentive
compensation and benefits expense. Earnings increased 12%, excluding
an $86 million decrease in income from Citigroup's 20.7% investment
in Nikko Securities reflecting Japan's continued weak retail
brokerage environment.
o Income in the Corporate Finance unit increased 28% before the Nikko
investment, driven by stronger investment banking revenues.
Citigroup ranked #1 in disclosed fees from global debt and equity
underwriting in the quarter.
o Private Client income declined 19% from the second quarter of 2000,
primarily due to lower transactional volumes. Income increased 7%
over the first quarter and profit margins increased to 22%, due to
expense reductions of $59 million, which more than offset lower
revenues and gross production per Financial Consultant. Assets under
fee-based management increased 6% to $206 billion, reflecting a
continued emphasis on fee-based services. Franchise growth continued
with the number of FC's increasing by 863 year-over-year to 12,549.
GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING
Core income of $180 million, up 6%. Highlights included:
o Revenues increased 6% despite a difficult market environment and
lower market values. Tight expense controls led to a $23 million
reduction in expenses from the first quarter of
2001.
o Private Bank income rose 18%, with increased customer activity
across most products generating revenue growth of 11%, while expense
growth was held to 7%.
o Assets under Management grew 5%, as strong net flows of $16 billion
year-to-date more than offset lower market values.
o Asset Management market share increased in nearly all proprietary
channels, with market shares of 58% in the Smith Barney retail
channel, 66% at Primerica Financial Services and 77% in the Citibank
North America channel.
INVESTMENT ACTIVITIES AND CORPORATE/OTHER
Income from Investment Activities was $227 million, down 12% from the second
quarter of 2000; income consisted of net realized gains in the insurance and
venture capital portfolios as well as an increase in the value of the
mark-to-market venture capital portfolio. Expenses in Corporate/Other decreased
by $8 million or 4% versus the second quarter of 2000, due primarily to expense
reduction initiatives and lower funding costs.
# # #
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; the ability to increase revenue and earnings, even
in light of difficult market conditions; and the ability to continue to deliver
consistent earnings growth.
# # #
A financial summary follows. Additional financial, statistical and
business-related information, as well as business and segment trends, is
included in the Financial Supplement.
Citigroup Segment Income
CITIGROUP
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CITIGROUP SEGMENT INCOME SECOND QUARTER % SIX MONTHS %
------------------ ----------------
(in Millions of Dollars) 2001 2000 Change 2001 2000 Change
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GLOBAL CONSUMER
Citibanking North America ......................................... $ 157 $ 134 17 $ 314 $ 265 18
Mortgage Banking .................................................. 88 71 24 165 137 20
North America Cards ............................................... 455 388 17 922 768 20
CitiFinancial ..................................................... 286 205 40 498 384 30
------------------- -------------------
Banking/Lending ..................................................... 986 798 24 1,899 1,554 22
------------------- -------------------
Travelers Life and Annuity ........................................ 231 202 14 441 389 13
Primerica Financial Services ...................................... 128 125 2 253 244 4
Personal Lines .................................................... 39 82 (52) 126 156 (19)
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Insurance ........................................................... 398 409 (3) 820 789 4
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Western Europe .................................................... 106 91 16 216 187 16
Japan ............................................................. 229 173 32 427 323 32
Emerging Markets Consumer Banking ................................. 213 193 10 408 413 (1)
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Total International ................................................. 548 457 20 1,051 923 14
------------------- -------------------
e-Consumer .......................................................... (32) (46) 30 (67) (114) 41
Other Consumer....................................................... (9) (33) 73 (5) (71) 93
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Total Global Consumer ............................................... 1,891 1,585 19 3,698 3,081 20
------------------- -------------------
GLOBAL CORPORATE
Corporate Finance ................................................. 717 643 12 1,519 1,505 1
Private Client .................................................... 205 253 (19) 396 612 (35)
CitiCapital ....................................................... (3) 8 NM 16 64 (75)
------------------- -------------------
Corporate and Investment Bank........................................ 919 904 2 1,931 2,181 (11)
Emerging Markets Corporate Banking and Global Transaction Services .. 467 345 35 923 685 35
Commercial Lines Insurance .......................................... 286 272 5 564 519 9
------------------- -------------------
TOTAL GLOBAL CORPORATE .............................................. 1,672 1,521 10 3,418 3,385 1
------------------- -------------------
GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING
Citigroup Asset Management .......................................... 87 91 (4) 182 185 (2)
The Citigroup Private Bank .......................................... 93 79 18 190 159 19
------------------- -------------------
TOTAL GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING............... 180 170 6 372 344 8
------------------- -------------------
INVESTMENT ACTIVITIES ............................................... 227 258 (12) 359 907 (60)
CORPORATE/OTHER ..................................................... (185) (193) 4 (402) (437) 8
------------------- -------------------
CORE INCOME ......................................................... 3,785 3,341 13 7,445 7,280 2
------------------- -------------------
Restructuring and Merger Related Items -- After Tax (A) ............. (133) (2) NM (213) (85) NM
------------------- -------------------
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGES ............... $ 3,652 $ 3,339 9 $ 7,232 $ 7,195 1
Cumulative Effect of Accounting Changes (B) ......................... (116) -- NM (158) -- NM
------------------- -------------------
NET INCOME .......................................................... $ 3,536 $ 3,339 6 $ 7,074 $ 7,195 (2)
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DILUTED EARNINGS PER SHARE:
CORE INCOME ......................................................... $ 0.74 $ 0.65 14 $ 1.45 $ 1.41 3
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGES ............... $ 0.71 $ 0.65 9 $ 1.40 $ 1.39 1
NET INCOME .......................................................... $ 0.69 $ 0.65 6 $ 1.37 $ 1.39 (1)
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CORE DILUTED EARNINGS PER SHARE EXCL. GOODWILL AMORTIZATION ......... $ 0.76 $ 0.67 13 $ 1.49 $ 1.45 3
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(A) Restructuring and merger-related items in the 2001 first quarter related principally to severance and costs associated with
the reduction of staff in the Global Corporate businesses, and in the 2001 second quarter related principally to severance and
costs associated with the reduction of staff in most businesses.
(B) Accounting Changes refer to the first quarter 2001 adoption of Statement of Financial Accounting Standards No. 133, Accounting
for Derivative Instruments and Hedging Activities, as amended (SFAS 133) and the second quarter 2001 adoption of EITF issue
99-20 Recognition of Interest Income and Impairment on Purchased and Retained Beneficial Interests in Securitized Financial
Assets (EITF 99-20).
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CITIGROUP SEGMENT INCOME SECOND QUARTER % SIX MONTHS %
------------------ ----------------
(in Millions of Dollars 2001 2000 Change 2001 2000 Change
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CITIGROUP EMERGING MARKETS (EXCLUDING INVESTMENT ACTIVITIES)
ASIA
Consumer Banking .................................................. $ 149 $ 137 9 $ 297 $ 276 8
Corporate ......................................................... 210 124 69 371 261 42
Asset Management & Private Banking ................................ 13 16 (19) 41 38 8
------------------- -------------------
TOTAL ASIA .......................................................... 372 277 34 709 575 23
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LATIN AMERICA
Consumer Banking .................................................. 50 41 22 83 106 (22)
Corporate ......................................................... 179 149 20 363 323 12
Asset Management & Private Banking ................................ 34 38 (11) 72 68 6
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TOTAL LATIN AMERICA ................................................. 263 228 15 518 497 4
------------------- -------------------
CENTRAL AND EASTERN EUROPE, MIDDLE EAST AND AFRICA
Consumer Banking .................................................. 20 14 43 38 29 31
Corporate ......................................................... 107 94 14 265 186 42
Asset Management & Private Banking ................................ 5 -- NM 9 7 29
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TOTAL CENTRAL AND EASTERN EUROPE, MIDDLE EAST AND AFRICA ............ 132 108 22 312 222 41
------------------- -------------------
Other ............................................................... 10 (5) NM (8) 2 NM
------------------- -------------------
TOTAL EMERGING MARKETS .............................................. $ 777 $ 608 28 $ 1,531 $ 1,296 18
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GLOBAL WEALTH MANAGEMENT
Private Client ...................................................... $ 205 $ 253 (19) $ 396 $ 612 (35)
Citigroup Asset Management .......................................... 87 91 (4) 182 185 (2)
The Citigroup Private Bank .......................................... 93 79 18 190 159 19
Global Consumer Investment, Life Insurance and Annuity Products ..... 362 346 5 710 694 2
------------------- -------------------
TOTAL GLOBAL WEALTH MANAGEMENT ...................................... $ 747 $ 769 (3) $ 1,478 $ 1,650 (10)
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GLOBAL CARDS
North America ....................................................... $ 455 $ 388 17 $ 922 $ 768 20
International ....................................................... 115 124 (7) 241 219 10
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TOTAL GLOBAL CARDS................................................... $ 570 $ 512 11 $ 1,163 $ 987 18
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GLOBAL CONSUMER FINANCE
North America ....................................................... $ 286 $ 205 40 $ 498 $ 384 30
International ....................................................... 207 151 37 384 277 39
------------------- -------------------
TOTAL GLOBAL CONSUMER FINANCE........................................ $ 493 $ 356 38 $ 882 $ 661 33
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CITIGROUP - QUARTERLY FINANCIAL DATA SUPPLEMENT CITIGROUP
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PAGE NUMBER
----------------
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 Insurance 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 Other Repossessed Assets 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
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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 1Q
2000 2000 2000 2000 2001
-------- -------- -------- -------- --------
CORE INCOME $ 3,939 $ 3,341 $ 3,529 $ 3,331 $ 3,660
Restructuring and Merger-Related Items (83) (2) (45) (491) (80)
Cumulative Effect of Accounting Changes -- -- -- -- (42)
-------- -------- -------- -------- --------
NET INCOME $ 3,856 $ 3,339 $ 3,484 $ 2,840 $ 3,538
======== ======== ======== ======== ========
BASIC EARNINGS PER SHARE:
CORE INCOME $ 0.79 $ 0.67 $ 0.70 $ 0.66 $ 0.73
======== ======== ======== ======== ========
NET INCOME $ 0.77 $ 0.67 $ 0.69 $ 0.57 $ 0.70
======== ======== ======== ======== ========
WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO BASIC EPS 4,975.5 4,977.1 4,978.7 4,976.5 4,984.7
======== ======== ======== ======== ========
PREFERRED DIVIDENDS - BASIC $ 30 $ 29 $ 29 $ 28 $ 28
======== ======== ======== ======== ========
DILUTED EARNINGS PER SHARE:
CORE INCOME $ 0.76 $ 0.65 $ 0.68 $ 0.65 $ 0.71
======== ======== ======== ======== ========
NET INCOME $ 0.75 $ 0.65 $ 0.67 $ 0.55 $ 0.69
======== ======== ======== ======== ========
CORE DILUTED EARNINGS PER SHARE EXCLUDING
GOODWILL AMORTIZATION $ 0.78 $ 0.67 $ 0.70 $ 0.67 $ 0.73
======== ======== ======== ======== ========
ADJUSTED WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO DILUTED EPS 5,115.4 5,121.6 5,134.8 5,116.8 5,110.0
======== ======== ======== ======== ========
PREFERRED DIVIDENDS - DILUTED $ 30 $ 29 $ 29 $ 28 $ 28
======== ======== ======== ======== ========
COMMON SHARES OUTSTANDING, AT PERIOD END 5,028.4 5,027.2 5,026.2 5,022.2 5,033.7
======== ======== ======== ======== ========
TIER 1 CAPITAL RATIO 9.00% 8.03% 7.76% 8.38% 8.56%
======== ======== ======== ======== ========
TOTAL CAPITAL RATIO 11.47% 10.34% 9.96% 11.23% 11.31%
======== ======== ======== ======== ========
LEVERAGE RATIO 6.60% 5.99% 5.91% 5.97% 6.10%
======== ======== ======== ======== ========
TOTAL ASSETS, AT PERIOD END (IN BILLIONS) $ 821.0 $ 877.2 $ 896.6 $ 902.2 $ 944.3
======== ======== ======== ======== ========
STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS) $ 59.9 $ 61.4 $ 63.7 $ 66.2 $ 68.7
======== ======== ======== ======== ========
STOCKHOLDERS' EQUITY AND TRUST SECURITIES, AT PERIOD END (IN BILLIONS) $ 64.8 $ 66.3 $ 68.6 $ 71.1 $ 73.6
======== ======== ======== ======== ========
BOOK VALUE PER SHARE, AT PERIOD END $ 11.57 $ 11.86 $ 12.33 $ 12.84 $ 13.29
======== ======== ======== ======== ========
RETURN ON COMMON EQUITY (NET INCOME) 26.7% 22.9% 22.7% 17.9% 21.7%
======== ======== ======== ======== ========
RETURN ON COMMON EQUITY (CORE INCOME) 27.3% 22.9% 22.9% 21.0% 22.5%
======== ======== ======== ======== ========
2Q 2001 VS. YTD YTD
2Q 2Q 2000 INCREASE/ 2Q 2Q
2001 (DECREASE) 2000 2001
-------- ----------------- --------- ---------
CORE INCOME $ 3,785 13% $ 7,280 $ 7,445
Restructuring and Merger-Related Items (133) (85) (213)
Cumulative Effect of Accounting Changes (116) -- (158)
-------- --------- ---------
NET INCOME $ 3,536 6% $ 7,195 $ 7,074
======== ========= =========
BASIC EARNINGS PER SHARE:
CORE INCOME $ 0.75 12% $ 1.45 $ 1.48
======== ========= =========
NET INCOME $ 0.70 4% $ 1.43 $ 1.41
======== ========= =========
WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO BASIC EPS 4,979.6 4,976.3 4,982.2
======== ========= =========
PREFERRED DIVIDENDS - BASIC $ 28 $ 59 $ 56
======== ========= =========
DILUTED EARNINGS PER SHARE:
CORE INCOME $ 0.74 14% $ 1.41 $ 1.45
======== ========= =========
NET INCOME $ 0.69 6% $ 1.39 $ 1.37
======== ========= =========
CORE DILUTED EARNINGS PER SHARE EXCLUDING
GOODWILL AMORTIZATION $ 0.76 13% $ 1.45 $ 1.49
======== ========= =========
ADJUSTED WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO DILUTED EPS 5,100.0 5,118.5 5,105.0
======== ========= =========
PREFERRED DIVIDENDS - DILUTED $ 28 $ 59 $ 56
======== ========= =========
COMMON SHARES OUTSTANDING, AT PERIOD END 5,026.1 5,027.2 5,026.1
======== ========= =========
TIER 1 CAPITAL RATIO 8.8% * 8.03% 8.8% *
======== ========= =========
TOTAL CAPITAL RATIO 11.5% * 10.34% 11.5% *
======== ========= =========
LEVERAGE RATIO 6.2% * 5.99% 6.2% *
======== ========= =========
TOTAL ASSETS, AT PERIOD END (IN BILLIONS) $ 953 * $ 877.2 $ 953 *
======== ========= =========
STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS) $ 70.4 * $ 61.4 $ 70.4 *
======== ========= =========
STOCKHOLDERS' EQUITY AND TRUST SECURITIES, AT PERIOD END (IN BILLIONS) $ 75.0 * $ 66.3 $ 75.0 *
======== ========= =========
BOOK VALUE PER SHARE, AT PERIOD END $ 13.68 * $ 11.86 $ 13.68 *
======== ========= =========
RETURN ON COMMON EQUITY (NET INCOME) 20.9% * 24.8% 21.3% *
======== ========= =========
RETURN ON COMMON EQUITY (CORE INCOME) 22.4% * 25.1% 22.5% *
======== ========= =========
YTD 2Q 2001 VS.
YTD 2Q 2000 INCREASE/
(DECREASE)
---------------------
CORE INCOME 2%
Restructuring and Merger-Related Items
Cumulative Effect of Accounting Changes
NET INCOME (2%)
BASIC EARNINGS PER SHARE:
CORE INCOME 2%
NET INCOME (1%)
WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO BASIC EPS
PREFERRED DIVIDENDS - BASIC
DILUTED EARNINGS PER SHARE:
CORE INCOME 3%
NET INCOME (1%)
CORE DILUTED EARNINGS PER SHARE EXCLUDING
GOODWILL AMORTIZATION 3%
ADJUSTED WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO DILUTED EPS
PREFERRED DIVIDENDS - DILUTED
COMMON SHARES OUTSTANDING, AT PERIOD END
TIER 1 CAPITAL RATIO
TOTAL CAPITAL RATIO
LEVERAGE RATIO
TOTAL ASSETS, AT PERIOD END (IN BILLIONS)
STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS)
STOCKHOLDERS' EQUITY AND TRUST SECURITIES, AT PERIOD END (IN BILLIONS)
BOOK VALUE PER SHARE, AT PERIOD END
RETURN ON COMMON EQUITY (NET INCOME)
RETURN ON COMMON EQUITY (CORE INCOME)
* Preliminary
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PAGE 1
CITIGROUP -- SEGMENT NET REVENUES
(In millions of dollars)
CITIGROUP
1Q 2Q 3Q 4Q 1Q
2000 2000 2000 2000 2001
-------- -------- -------- -------- --------
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America $ 579 $ 566 $ 566 $ 563 $ 611
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 4,618 4,790 5,030 5,196
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 591 662 713 815 825
Asia 539 519 521 517 540
Latin America 513 466 436 526 471
Central & Eastern Europe, Middle East and Africa 100 106 112 120 130
-------- -------- -------- -------- --------
Total Emerging Markets Consumer Banking 1,152 1,091 1,069 1,163 1,141
-------- -------- -------- -------- --------
Total International 2,361 2,353 2,361 2,569 2,588
e-Consumer 31 28 76 35 47
OTHER 33 (19) 94 56 10
-------- -------- -------- -------- --------
TOTAL GLOBAL CONSUMER 9,516 9,492 9,752 10,267 10,541
-------- -------- -------- -------- --------
GLOBAL CORPORATE:
Corporate Finance 3,089 2,823 2,933 2,760 3,807
Private Client 1,916 1,690 1,681 1,628 1,547
CitiCapital 275 288 301 302 316
-------- -------- -------- -------- --------
Corporate and Investment Bank 5,280 4,801 4,915 4,690 5,670
Emerging Markets Corporate Banking and Global Transaction Services 1,571 1,629 1,660 1,712 1,891
Commercial Lines 1,719 1,788 1,928 2,062 1,970
-------- -------- -------- -------- --------
TOTAL GLOBAL CORPORATE 8,570 8,218 8,503 8,464 9,531
-------- -------- -------- -------- --------
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
Citigroup Asset Management 436 479 490 486 517
The Citigroup Private Bank 363 339 337 370 390
-------- -------- -------- -------- --------
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 799 818 827 856 907
-------- -------- -------- -------- --------
CORPORATE / OTHER (88) (160) (170) (279) (165)
INVESTMENT ACTIVITIES 1,042 426 496 345 233
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ADJUSTED NET REVENUES $ 19,839 $ 18,794 $ 19,408 $ 19,653 $ 21,047
- ---------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION:
CITIGROUP EMERGING MARKETS - EXCL. INVESTMENT ACTIVITIES $ 2,814 $ 2,777 $ 2,768 $ 2,898 $ 3,104
GLOBAL WEALTH MANAGEMENT $ 4,386 $ 4,128 $ 4,039 $ 4,100 $ 4,210
GLOBAL CARDS $ 3,112 $ 3,156 $ 3,322 $ 3,515 $ 3,595
GLOBAL CONSUMER FINANCE $ 1,842 $ 1,936 $ 1,965 $ 2,136 $ 2,197
2Q 2001 VS. YTD YTD
2Q 2Q 2000 INCREASE/ 2Q 2Q
2001 (DECREASE) 2000 2001
-------- ----------------- -------- --------
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America $ 662 17% $ 1,145 $ 1,273
Mortgage Banking 268 19% 449 510
North America Cards 3,099 21% 5,108 6,103
CitiFinancial 1,390 10% 2,491 2,729
-------- -------- --------
Total Banking / Lending 5,419 17% 9,193 10,615
INSURANCE
Travelers Life and Annuity 975 (1%) 1,993 2,105
Primerica Financial Services 497 4% 951 987
Personal Lines 1,106 5% 2,084 2,186
-------- -------- --------
Total Insurance 2,578 3% 5,028 5,278
INTERNATIONAL
Western Europe 602 -- 1,218 1,224
Japan 818 24% 1,253 1,643
Asia 539 4% 1,058 1,079
Latin America 480 3% 979 951
Central & Eastern Europe, Middle East and Africa 135 27% 206 265
-------- -------- --------
Total Emerging Markets Consumer Banking 1,154 6% 2,243 2,295
-------- -------- --------
Total International 2,574 9% 4,714 5,162
e-Consumer 35 25% 59 82
OTHER 57 NM 14 67
-------- -------- --------
TOTAL GLOBAL CONSUMER 10,663 12% 19,008 21,204
-------- -------- --------
GLOBAL CORPORATE:
Corporate Finance 2,853 1% 5,912 6,660
Private Client 1,508 (11%) 3,606 3,055
CitiCapital 321 11% 563 637
-------- -------- --------
Corporate and Investment Bank 4,682 (2%) 10,081 10,352
Emerging Markets Corporate Banking and Global Transaction Services 1,852 14% 3,200 3,743
Commercial Lines 2,018 13% 3,507 3,988
-------- -------- --------
TOTAL GLOBAL CORPORATE 8,552 4% 16,788 18,083
-------- -------- --------
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
Citigroup Asset Management 492 3% 915 1,009
The Citigroup Private Bank 375 11% 702 765
-------- -------- --------
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 867 6% 1,617 1,774
-------- -------- --------
CORPORATE / OTHER (128) 20% (248) (293)
INVESTMENT ACTIVITIES 361 (15%) 1,468 594
- ------------------------------------------------------------------------------ --------------------
TOTAL ADJUSTED NET REVENUES $ 20,315 8% $ 38,633 $ 41,362
- ------------------------------------------------------------------------------ --------------------
SUPPLEMENTAL INFORMATION:
CITIGROUP EMERGING MARKETS - EXCL. INVESTMENT ACTIVITIES $ 3,071 11% $ 5,591 $ 6,175
GLOBAL WEALTH MANAGEMENT $ 3,965 (4%) $ 8,514 $ 8,175
GLOBAL CARDS $ 3,690 17% $ 6,268 $ 7,285
GLOBAL CONSUMER FINANCE $ 2,251 16% $ 3,778 $ 4,448
YTD 2Q 2001 VS.
YTD 2Q 2000 INCREASE/
(DECREASE)
---------------------
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America 11%
Mortgage Banking 14%
North America Cards 19%
CitiFinancial 10%
Total Banking / Lending 15%
INSURANCE
Travelers Life and Annuity 6%
Primerica Financial Services 4%
Personal Lines 5%
Total Insurance 5%
INTERNATIONAL
Western Europe --
Japan 31%
Asia 2%
Latin America (3%)
Central & Eastern Europe, Middle East and Africa 29%
Total Emerging Markets Consumer Banking 2%
Total International 10%
e-Consumer 39%
OTHER NM
TOTAL GLOBAL CONSUMER 12%
GLOBAL CORPORATE:
Corporate Finance 13%
Private Client (15%)
CitiCapital 13%
Corporate and Investment Bank 3%
Emerging Markets Corporate Banking and Global Transaction Services 17%
Commercial Lines 14%
TOTAL GLOBAL CORPORATE 8%
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
Citigroup Asset Management 10%
The Citigroup Private Bank 9%
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 10%
CORPORATE / OTHER (18%)
INVESTMENT ACTIVITIES (60%)
- ---------------------------------------------------------------------
TOTAL ADJUSTED NET REVENUES 7%
- ---------------------------------------------------------------------
SUPPLEMENTAL INFORMATION:
CITIGROUP EMERGING MARKETS - EXCL. INVESTMENT ACTIVITIES 10%
GLOBAL WEALTH MANAGEMENT (4%)
GLOBAL CARDS 16%
GLOBAL CONSUMER FINANCE 18%
NM Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 2
CITIGROUP -- SEGMENT CORE INCOME
(In millions of dollars)
CITIGROUP
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
------- ------- ------- ------- ------- -------
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America $ 131 $ 134 $ 131 $ 131 $ 157 $ 157
Mortgage Banking 66 71 77 83 77 88
North America Cards 380 388 492 527 467 455
CitiFinancial 179 205 213 213 212 286
------- ------- ------- ------- ------- -------
Total Banking / Lending 756 798 913 954 913 986
INSURANCE
Travelers Life and Annuity 187 202 179 209 210 231
Primerica Financial Services 119 125 124 124 125 128
Personal Lines 74 82 68 83 87 39
------- ------- ------- ------- ------- -------
Total Insurance 380 409 371 416 422 398
INTERNATIONAL
Western Europe 96 91 94 103 110 106
Japan 150 173 204 202 198 229
Asia 141 139 139 131 147 147
Latin America 64 39 30 66 30 45
Central & Eastern Europe, Middle East and Africa 15 15 12 8 18 21
------- ------- ------- ------- ------- -------
Total Emerging Markets Consumer Banking 220 193 181 205 195 213
------- ------- ------- ------- ------- -------
Total International 466 457 479 510 503 548
e-Consumer (68) (46) (38) (36) (35) (32)
OTHER (38) (33) (7) 37 4 (9)
------- ------- ------- ------- ------- -------
TOTAL GLOBAL CONSUMER 1,496 1,585 1,718 1,881 1,807 1,891
------- ------- ------- ------- ------- -------
GLOBAL CORPORATE:
Corporate Finance 862 643 622 524 802 717
Private Client 359 253 250 207 191 205
CitiCapital 56 8 9 (146) 19 (3)
------- ------- ------- ------- ------- -------
Corporate and Investment Bank 1,277 904 881 585 1,012 919
Emerging Markets Corporate Banking and Global Transaction Services 340 345 397 425 456 467
Commercial Lines 247 272 317 257 278 286
------- ------- ------- ------- ------- -------
TOTAL GLOBAL CORPORATE 1,864 1,521 1,595 1,267 1,746 1,672
------- ------- ------- ------- ------- -------
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
Citigroup Asset Management 94 91 94 77 95 87
The Citigroup Private Bank 80 79 79 85 97 93
------- ------- ------- ------- ------- -------
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 174 170 173 162 192 180
------- ------- ------- ------- ------- -------
CORPORATE / OTHER (244) (193) (247) (175) (217) (185)
INVESTMENT ACTIVITIES 649 258 290 196 132 227
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL CORE INCOME $ 3,939 $ 3,341 $ 3,529 $ 3,331 $ 3,660 $ 3,785
- -----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION:
CITIGROUP EMERGING MARKETS - EXCL. INVESTMENT ACTIVITIES $ 688 $ 608 $ 643 $ 688 $ 754 $ 777
GLOBAL WEALTH MANAGEMENT $ 881 $ 769 $ 753 $ 713 $ 731 $ 747
GLOBAL CARDS $ 475 $ 512 $ 604 $ 645 $ 593 $ 570
GLOBAL CONSUMER FINANCE $ 305 $ 356 $ 383 $ 392 $ 389 $ 493
2Q 2001 VS. YTD YTD YTD 2Q 2001 VS.
2Q 2000 INCREASE/ 2Q 2Q YTD 2Q 2000 INCREASE/
(DECREASE) 2000 2001 (DECREASE)
----------------- ------- ------- ---------------------
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America 17% $ 265 $ 314 18%
Mortgage Banking 24% 137 165 20%
North America Cards 17% 768 922 20%
CitiFinancial 40% 384 498 30%
------- -------
Total Banking / Lending 24% 1,554 1,899 22%
INSURANCE
Travelers Life and Annuity 14% 389 441 13%
Primerica Financial Services 2% 244 253 4%
Personal Lines (52%) 156 126 (19%)
------- -------
Total Insurance (3%) 789 820 4%
INTERNATIONAL
Western Europe 16% 187 216 16%
Japan 32% 323 427 32%
Asia 6% 280 294 5%
Latin America 15% 103 75 (27%)
Central & Eastern Europe, Middle East and Africa 40% 30 39 30%
------- -------
Total Emerging Markets Consumer Banking 10% 413 408 (1%)
------- -------
Total International 20% 923 1,051 14%
e-Consumer 30% (114) (67) 41%
OTHER 73% (71) (5) 93%
------- -------
TOTAL GLOBAL CONSUMER 19% 3,081 3,698 20%
------- -------
GLOBAL CORPORATE:
Corporate Finance 12% 1,505 1,519 1%
Private Client (19%) 612 396 (35%)
CitiCapital NM 64 16 (75%)
------- -------
Corporate and Investment Bank 2% 2,181 1,931 (11%)
Emerging Markets Corporate Banking and Global Transaction Services 35% 685 923 35%
Commercial Lines 5% 519 564 9%
------- -------
TOTAL GLOBAL CORPORATE 10% 3,385 3,418 1%
------- -------
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
Citigroup Asset Management (4%) 185 182 (2%)
The Citigroup Private Bank 18% 159 190 19%
------- -------
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 6% 344 372 8%
------- -------
CORPORATE / OTHER 4% (437) (402) 8%
INVESTMENT ACTIVITIES (12%) 907 359 (60%)
- --------------------------------------------------------------------- ------------------
TOTAL CORE INCOME 13% $ 7,280 $ 7,445 2%
- --------------------------------------------------------------------- ------------------
SUPPLEMENTAL INFORMATION:
CITIGROUP EMERGING MARKETS - EXCL. INVESTMENT ACTIVITIES 28% $ 1,296 $ 1,531 18%
GLOBAL WEALTH MANAGEMENT (3%) $ 1,650 $ 1,478 (10%)
GLOBAL CARDS 11% $ 987 $ 1,163 18%
GLOBAL CONSUMER FINANCE 38% $ 661 $ 882 33%
Reclassified to conform to the current period's presentation.
PAGE 3
GLOBAL CONSUMER - BANKING/LENDING
CITIBANKING NORTH AMERICA
(In millions of dollars)
CITIGROUP
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
------ ------ ------ ------ ------ ------
Total Revenues, Net of Interest Expense $ 579 $ 566 $ 566 $ 563 $ 611 $ 662
Adjusted Operating Expenses 351 334 339 345 346 394
Provision for Loan Losses 9 7 7 6 7 13
------ ------ ------ ------ ------ ------
Core Income Before Taxes 219 225 220 212 258 255
Income Taxes 88 91 89 81 101 98
------ ------ ------ ------ ------ ------
Core Income $ 131 $ 134 $ 131 $ 131 $ 157 $ 157
====== ====== ====== ====== ====== ======
Average Assets (in billions of dollars) $ 9 $ 9 $ 9 $ 9 $ 9 $ 9
====== ====== ====== ====== ====== ======
Return on Assets 5.85% 5.99% 5.79% 5.79% 7.07% 7.00%
====== ====== ====== ====== ====== ======
Average Loans (in billions of dollars) $ 7.0 $ 7.0 $ 6.9 $ 7.0 $ 7.0 $ 7.0
Average Customer Deposits (in billions of dollars) $ 43.7 $ 44.5 $ 45.0 $ 46.1 47.9 $ 48.1
EOP Accounts (in millions) 6.3 6.4 6.5 6.7 6.7 6.8
Non-Interest Revenue as % of Total Revenues 27.2% 26.6% 26.8% 25.1% 22.7% 29.9%
Net Credit Loss Ratio (1) 1.00% 0.88% 0.86% 0.90% 0.85% 1.03%
Loans 90+Days Past Due:
In millions of dollars $ 47 $ 33 $ 33 $ 35 $ 41 $ 41
% 0.67% 0.47% 0.46% 0.48% 0.59% 0.58%
Proprietary Mutual Funds / UIT $ 373 $ 124 $ 280 $ 280 $ 331 $ 255
Proprietary Money Market Funds 1,015 679 748 690 958 731
------ ------ ------ ------ ------ ------
Total Proprietary Funds 1,388 803 1,028 970 1,289 986
Third Party Funds 947 599 426 346 420 294
------ ------ ------ ------ ------ ------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $2,335 $1,402 $1,454 $1,316 $1,709 $1,280
====== ====== ====== ====== ====== ======
Variable Annuity Premiums & Deposits (in millions of dollars) $ 270 $ 330 $ 385 $ 381 $ 304 $ 302
Branches 371 367 367 367 368 368
ATM-only locations 109 105 107 91 103 107
Proprietary ATMs 2,092 2,081 2,079 2,063 2,048 2,043
2Q 2001 VS. YTD YTD YTD 2Q 2001 VS.
2Q 2000 INCREASE/ 2Q 2Q YTD 2Q 2000 INCREASE/
(DECREASE) 2000 2001 (DECREASE)
----------------- ------ ------ ---------------------
Total Revenues, Net of Interest Expense 17% $1,145 $1,273 11%
Adjusted Operating Expenses 18% 685 740 8%
Provision for Loan Losses 86% 16 20 25%
------ ------
Core Income Before Taxes 13% 444 513 16%
Income Taxes 8% 179 199 11%
------ ------
Core Income 17% $ 265 $ 314 18%
====== ======
Average Assets (in billions of dollars) -- $ 9 $ 9 --
====== ======
Return on Assets 5.92% 7.04%
====== ======
Average Loans (in billions of dollars) -- $ 7.0 $ 7.0 --
Average Customer Deposits (in billions of dollars) 8% 44.1 48.0 9%
EOP Accounts (in millions) 6%
Non-Interest Revenue as % of Total Revenues 26.9% 26.3%
Net Credit Loss Ratio (1)
Loans 90+Days Past Due:
In millions of dollars 24%
%
Proprietary Mutual Funds / UIT 106% $ 497 $ 586 18%
Proprietary Money Market Funds 8% 1,694 1,689 --
------ ------
Total Proprietary Funds 23% 2,191 2,275 4%
Third Party Funds (51%) 1,546 714 (54%)
------ ------
Mutual Fund / UIT Sales at NAV (in millions of dollars) (9%) $3,737 $2,989 (20%)
====== ======
Variable Annuity Premiums & Deposits (in millions of dollars) (8%) $ 600 $ 606 1%
Branches --
ATM-only locations 2%
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)
CITIGROUP
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
------- ------- ------- ------- ------- -------
Total Revenues, Net of Interest Expense $ 223 $ 226 $ 225 $ 238 $ 242 $ 268
Adjusted Operating Expenses 99 102 92 102 109 116
Provision for Loan Losses 9 (1) 1 (7) -- (3)
------- ------- ------- ------- ------- -------
Core Income Before Taxes and Minority Interest 115 125 132 143 133 155
Income Taxes 44 48 49 55 51 60
Minority Interest, Net of Tax 5 6 6 5 5 7
------- ------- ------- ------- ------- -------
Core Income $ 66 $ 71 $ 77 $ 83 $ 77 $ 88
======= ======= ======= ======= ======= =======
Average Assets (in billions of dollars) $ 34 $ 37 $ 42 $ 45 $ 47 $ 48
======= ======= ======= ======= ======= =======
Return on Assets 0.78% 0.77% 0.73% 0.73% 0.66% 0.74%
======= ======= ======= ======= ======= =======
EOP ACCOUNTS OWNED AND SERVICED (IN MILLIONS):
- ----------------------------------------------
Student Loans 2.8 3.0 3.3 3.5 3.5 3.5
Mortgages 0.7 0.9 0.9 0.9 0.9 0.9
Consumer Finance 0.1 0.1 0.1 0.1 0.1 0.1
------- ------- ------- ------- ------- -------
Total 3.6 4.0 4.3 4.5 4.5 4.5
======= ======= ======= ======= ======= =======
OWNED AND SERVICED AVERAGE LOANS (IN BILLION OF DOLLARS):
- ---------------------------------------------------------
Mortgages (2) $ 20.1 $ 21.6 $ 23.8 $ 25.9 $ 26.8 $ 27.3
Student Loans 11.6 12.3 14.2 15.3 16.8 17.2
Consumer Finance 0.4 0.5 0.7 0.9 1.0 1.2
------- ------- ------- ------- ------- -------
Average Loans - On Balance Sheet 32.1 34.4 38.7 42.1 44.6 45.7
Other Serviced Loans 54.1 59.9 61.8 62.6 64.2 66.0
------- ------- ------- ------- ------- -------
Total $ 86.2 $ 94.3 $ 100.5 $ 104.7 $ 108.8 $ 111.7
======= ======= ======= ======= ======= =======
Mortgage Originations (in billions of dollars) $ 3.7 $ 5.1 $ 5.7 $ 5.5 $ 5.9 $ 8.8
Student Loan Originations $ 1.0 $ 0.7 $ 1.5 $ 1.2 $ 1.5 $ 0.5
Consumer Finance Originations $ 0.2 $ 0.3 $ 0.3 $ 0.3 $ 0.3 $ 0.4
Net Credit Loss Ratio (3) 0.19% 0.08% 0.09% 0.27% 0.06% 0.08%
Loans 90+ Days Past Due:
In millions of dollars $ 733 $ 722 $ 723 $ 846 $ 957 $ 1,191
% 2.28% 2.10% 1.88% 2.01% 2.14% 2.61%
2Q 2001 VS. YTD YTD YTD 2Q 2001 VS.
2Q 2000 INCREASE/ 2Q 2Q YTD 2Q 2000 INCREASE/
(DECREASE) 2000 2001 (DECREASE)
----------------- --------- --------- ---------------------
Total Revenues, Net of Interest Expense 19% $ 449 $ 510 14%
Adjusted Operating Expenses 14% 201 225 12%
Provision for Loan Losses (200%) 8 (3) NM
--------- ---------
Core Income Before Taxes and Minority Interest 24% 240 288 20%
Income Taxes 25% 92 111 21%
Minority Interest, Net of Tax 17% 11 12 9%
--------- ---------
Core Income 24% $ 137 $ 165 20%
========= =========
Average Assets (in billions of dollars) 30% $ 36 $ 48 33%
========= =========
Return on Assets 0.77% 0.69%
========= =========
EOP ACCOUNTS OWNED AND SERVICED (IN MILLIONS):
- ----------------------------------------------
Student Loans 17%
Mortgages --
Consumer Finance --
Total 13%
OWNED AND SERVICED AVERAGE LOANS (IN BILLION OF DOLLARS):
- ---------------------------------------------------------
Mortgages (2) 26% $ 20.9 $ 27.1 30%
Student Loans 40% 12.0 17.0 42%
Consumer Finance 140% 0.5 1.1 120%
--------- ---------
Average Loans - On Balance Sheet 33% 33.4 45.2 35%
Other Serviced Loans 10% 57.0 65.1 14%
--------- ---------
Total 18% $ 90.4 $ 110.3 22%
========= =========
Mortgage Originations (in billions of dollars) 73% $ 8.8 $ 14.7 67%
Student Loan Originations (29%) $ 1.7 $ 2.0 18%
Consumer Finance Originations 33% $ 0.5 $ 0.7 40%
Net Credit Loss Ratio (3)
Loans 90+ Days Past Due:
In millions of dollars 65%
%
(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)
CITIGROUP
1Q 2Q 3Q 4Q 1Q
2000 2000 2000 2000 2001
--------- --------- --------- --------- ---------
Adjusted Revenues, Net of Interest Expense $ 2,551 $ 2,557 $ 2,737 $ 2,911 $ 3,004
Adjusted Operating Expenses 957 975 1,005 1,017 1,041
Adjusted Provision for Loan Losses (2) 990 961 957 1,065 1,221
--------- --------- --------- --------- ---------
Core Income Before Taxes 604 621 775 829 742
Income Taxes 224 233 283 302 275
--------- --------- --------- --------- ---------
Core Income $ 380 $ 388 $ 492 $ 527 $ 467
========= ========= ========= ========= =========
Managed Average Assets (in billions of dollars) $ 90 $ 94 $ 101 $ 106 $ 106
========= ========= ========= ========= =========
Return on Managed Assets 1.70% 1.66% 1.94% 1.98% 1.79%
========= ========= ========= ========= =========
CITI CARDS DATA (3):
(in billions of dollars)
Net Interest Revenue (in millions of dollars) (4) $ 1,956 $ 1,899 $ 2,055 $ 2,198 $ 2,374
% of Average Managed Loans 9.29% 8.66% 8.62% 8.83% 9.61%
Risk Adjusted Revenue (in millions of dollars) (5) $ 1,471 $ 1,516 $ 1,701 $ 1,768 $ 1,709
% of Average Managed Loans 6.99% 6.91% 7.14% 7.10% 6.92%
Adjusted Operating Expenses as % of Average Managed Loans 4.19% 4.14% 3.93% 3.79% 3.93%
End of Period Managed Receivables $ 86.1 $ 92.3 $ 97.7 $ 103.2 $ 100.5
Total EOP Open Accounts (in millions) 78.5 83.9 89.4 90.8 93.2
Total Sales $ 48.4 $ 55.3 $ 55.2 $ 56.8 $ 51.2
END OF PERIOD LOANS:
- --------------------
On Balance Sheet $ 27.9 $ 33.5 $ 37.9 $ 37.0 $ 32.6
Securitized 54.5 51.6 53.3 57.2 60.1
Held for Sale 3.4 6.5 5.8 8.1 7.0
--------- --------- --------- --------- ---------
Total $ 85.8 $ 91.6 $ 97.0 $ 102.3 $ 99.7
========= ========= ========= ========= =========
AVERAGE LOANS:
- --------------
On Balance Sheet $ 26.9 $ 32.1 $ 36.9 $ 36.9 $ 34.7
Securitized 54.7 51.7 51.1 55.4 58.5
Held for Sale 3.1 4.4 6.8 6.7 7.0
--------- --------- --------- --------- ---------
Total $ 84.7 $ 88.2 $ 94.8 $ 99.0 $ 100.2
========= ========= ========= ========= =========
NET CREDIT LOSSES (in millions of dollars):
- ------------------
On Balance Sheet $ 328 $ 347 $ 362 $ 398 $ 466
Securitized 631 561 524 592 667
Held for Sale 21 40 56 61 63
--------- --------- --------- --------- ---------
Total $ 980 $ 948 $ 942 $ 1,051 $ 1,196
========= ========= ========= ========= =========
Coincident Net Credit Loss Ratio 4.65% 4.32% 3.95% 4.22% 4.84%
12 Month Lagged Net Credit Loss Ratio 5.11% 4.81% 4.67% 5.16% 5.72%
LOANS 90+ DAYS PAST DUE:
- ------------------------
In millions of dollars $ 1,281 $ 1,156 $ 1,295 $ 1,497 $ 1,836
% 1.49% 1.26% 1.34% 1.46% 1.84%
2Q 2001 VS. YTD YTD YTD 2Q 2001 VS.
2Q 2Q 2000 INCREASE/ 2Q 2Q YTD 2Q 2000 INCREASE/
2001 (DECREASE) 2000 2001 (DECREASE)
--------- ----------------- ------- ------- ---------------------
Adjusted Revenues, Net of Interest Expense $ 3,099 21% $ 5,108 $ 6,103 19%
Adjusted Operating Expenses 1,003 3% 1,932 2,044 6%
Adjusted Provision for Loan Losses (2) 1,371 43% 1,951 2,592 33%
--------- ------- -------
Core Income Before Taxes 725 17% 1,225 1,467 20%
Income Taxes 270 16% 457 545 19%
--------- ------- -------
Core Income $ 455 17% $ 768 $ 922 20%
========= ======= =======
Managed Average Assets (in billions of dollars) $ 106 13% $ 92 $ 106 15%
========= ======= =======
Return on Managed Assets 1.72% 1.68% 1.75%
========= ======= =======
CITI CARDS DATA (3):
(in billions of dollars)
Net Interest Revenue (in millions of dollars) (4) $ 2,411 27% $ 3,855 $ 4,785 24%
% of Average Managed Loans 9.61% 8.97% 9.61%
Risk Adjusted Revenue (in millions of dollars) (5) $ 1,627 7% $ 2,987 $ 3,336 12%
% of Average Managed Loans 6.49% 6.95% 6.70%
Adjusted Operating Expenses as % of Average Managed Loans 3.73%
End of Period Managed Receivables $ 103.9 13%
Total EOP Open Accounts (in millions) 94.1 12%
Total Sales $ 55.6 1% $ 103.7 $ 106.8 3%
END OF PERIOD LOANS:
- --------------------
On Balance Sheet $ 32.6 (3%)
Securitized 61.4 19%
Held for Sale 9.0 38%
---------
Total $ 103.0 12%
=========
AVERAGE LOANS:
- --------------
On Balance Sheet $ 33.5 4% $ 29.5 34.1 16%
Securitized 59.7 15% 53.2 59.1 11%
Held for Sale 7.4 68% 3.8 7.2 89%
--------- ------- -------
Total $ 100.6 14% $ 86.5 $ 100.4 16%
========= ======= =======
NET CREDIT LOSSES (in millions of dollars):
- -------------------------------------------
On Balance Sheet $ 477 37% $ 675 $ 943 40%
Securitized 816 45% 1,192 1,483 24%
Held for Sale 90 125% 61 153 151%
--------- ------- -------
Total $ 1,383 46% $ 1,928 $ 2,579 34%
========= ======= =======
Coincident Net Credit Loss Ratio 5.51%
12 Month Lagged Net Credit Loss Ratio 6.29%
LOANS 90+ DAYS PAST DUE:
- ------------------------
In millions of dollars $ 1,775 54%
% 1.72%
(1) Includes Citi Cards (bankcards and private-label 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.
PAGE6
GLOBAL CONSUMER - BANKING/LENDING
CITIFINANCIAL
(In millions of dollars)
CITIGROUP
1Q 2Q 3Q 4Q 1Q
2000 2000 2000 2000 2001
--------- --------- --------- --------- ---------
Adjusted Revenues, Net of Interest Expense* $ 1,222 $ 1,269 $ 1,262 $ 1,318 $ 1,339
Adjusted Operating Expenses 536 571 568 581 569
Adjusted Provision for Benefits, Claims, and Credit Losses 404 373 362 407 428
--------- --------- --------- --------- ---------
Core Income Before Taxes 282 325 332 330 342
Income Taxes 103 120 119 117 130
--------- --------- --------- --------- ---------
Core Income $ 179 $ 205 $ 213 $ 213 $ 212
========= ========= ========= ========= =========
Average Assets (in billions of dollars) $ 51 $ 55 $ 58 $ 61 $ 63
========= ========= ========= ========= =========
Return on Assets 1.41% 1.50% 1.46% 1.39% 1.36%
========= ========= ========= ========= =========
NET RECEIVABLES (in billions of dollars):
- -----------------------------------------
Real estate secured loans (1) $ 33.7 $ 35.5 $ 36.7 $ 38.1 $ 40.3
Personal loans (2) 9.8 9.7 9.7 9.9 9.8
Auto 3.0 3.8 4.2 4.6 5.2
Sales finance and other 2.8 2.6 2.6 2.7 2.4
--------- --------- --------- --------- ---------
Total $ 49.3 $ 51.6 $ 53.2 $ 55.3 $ 57.7
========= ========= ========= ========= =========
Number of offices 2,767 2,738 2,699 2,720 2,430
Average yield (3) 14.26% 14.16% 14.11% 14.03% 13.93%
Average net interest margin (3) 8.21% 7.84% 7.61% 7.55% 7.70%
Net credit loss ratio (3) 2.92% 2.49% 2.33% 2.57% 2.57%
Loans 90+ Days Past Due:
In millions of dollars $ 1,044 $ 1,033 $ 1,084 $ 1,272 $ 1,599
% 2.11% 1.98% 2.00% 2.23% 2.77%
(1) Includes fully secured $.M.A.R.T. receivables,
as follows: $ 4.1 $ 4.4 $ 4.7 $ 5.2 $ 5.6
(2) Includes $.A.F.E. and partially secured $.M.A.R.T
receivables, as follows: $ 0.3 $ 0.3 $ 0.3 $ 0.3 $ 0.3
(3) Includes loans held for sale
2Q 2001 VS. YTD YTD YTD 2Q 2001 VS.
2Q 2Q 2000 INCREASE/ 2Q 2Q YTD 2Q 2000 INCREASE/
2001 (DECREASE) 2000 2001 (DECREASE)
--------- ----------------- --------- --------- ---------------------
Adjusted Revenues, Net of Interest Expense* $ 1,390 10% $ 2,491 $ 2,729 10%
Adjusted Operating Expenses 502 (12%) 1,107 1,071 (3%)
Adjusted Provision for Benefits, Claims, and Credit Losses 434 16% 777 862 11%
--------- --------- ---------
Core Income Before Taxes 454 40% 607 796 31%
Income Taxes 168 40% 223 298 34%
--------- --------- ---------
Core Income $ 286 40% $ 384 $ 498 30%
========= ========= =========
Average Assets (in billions of dollars) $ 65 18% $ 53 $ 64 21%
========= ========= =========
Return on Assets 1.76% 1.46% 1.57%
========= ========= =========
NET RECEIVABLES (in billions of dollars):
- -----------------------------------------
Real estate secured loans (1) $ 40.6 14%
Personal loans (2) 9.8 1%
Auto 5.8 53%
Sales finance and other 2.3 (12%)
---------
Total $ 58.5 13%
=========
Number of offices 2,336 (15%)
Average yield (3) 13.69% 14.21% 13.81%
Average net interest margin (3) 7.85% 8.02% 7.78%
Net credit loss ratio (3) 2.55% 2.70% 2.56%
Loans 90+ Days Past Due:
In millions of dollars $ 1,757 70%
% 3.00%
(1) Includes fully secured $.M.A.R.T. receivables,
as follows: $ 6.4 45%
(2) Includes $.A.F.E. and partially secured $.M.A.R.T
receivables, as follows: $ 0.3 --
(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)
CITIGROUP
1Q 2Q 3Q 4Q 1Q
2000 2000 2000 2000 2001
--------- --------- --------- --------- ---------
Total Revenues, Net of Interest Expense* $ 1,010 $ 983 $ 899 $ 999 $ 1,130
Total Operating Expenses 126 97 103 83 88
Provision for Benefits and Claims 603 586 531 605 729
--------- --------- --------- --------- ---------
Core Income Before Taxes 281 300 265 311 313
Income Taxes 94 98 86 102 103
--------- --------- --------- --------- ---------
Core Income $ 187 $ 202 $ 179 $ 209 $ 210
========= ========= ========= ========= =========
PRE-TAX CONTRIBUTION BY SOURCE:
- -------------------------------
Individual annuities $ 108 $ 118 $ 117 $ 122 $ 122
Group annuities 92 114 91 123 117
Life and long-term care insurance 60 55 40 46 63
Other (includes run-off and return on excess capital) 21 13 17 20 11
--------- --------- --------- --------- ---------
Total $ 281 $ 300 $ 265 $ 311 $ 313
========= ========= ========= ========= =========
INDIVIDUAL ANNUITIES:
- --------------------
Net written premiums & deposits:
Fixed $ 293.5 $ 302.6 $ 320.3 $ 350.0 $ 427.2
Variable 1,245.0 1,258.5 1,273.6 1,247.7 1,098.7
Individual Payout 20.5 21.7 20.6 17.0 18.7
--------- --------- --------- --------- ---------
Total $ 1,559.0 $ 1,582.8 $ 1,614.5 $ 1,614.7 $ 1,544.6
========= ========= ========= ========= =========
Policyholder account balances & benefit reserves: (1)
Fixed $ 7,911.3 $ 7,904.0 $ 7,939.8 $ 8,050.0 $ 8,271.7
Variable 21,072.7 21,013.2 21,678.1 20,704.0 18,948.3
Individual Payout 619.6 626.2 630.0 630.3 631.9
--------- --------- --------- --------- ---------
Total $29,603.6 $29,543.4 $30,247.9 $29,384.3 $27,851.9
========= ========= ========= ========= =========
GROUP ANNUITIES:
- ----------------
Net written premiums & deposits (2) $ 1,456.9 $ 1,439.1 $ 1,481.8 $ 1,149.9 $ 2,501.6
Policyholder account balances & benefit reserves: (1)
GIC's and other investment contracts $11,087.0 $11,204.2 $11,966.9 $12,598.6 $13,732.0
Payout Group annuities 4,514.9 4,624.0 4,713.8 4,861.5 5,140.5
--------- --------- --------- --------- ---------
Total $15,601.9 $15,828.2 $16,680.7 $17,460.1 $18,872.5
========= ========= ========= ========= =========
INDIVIDUAL LIFE INSURANCE:
- -------------------------
Net written premiums and deposits:
Direct periodic premiums and deposits $ 116.7 $ 113.4 $ 135.8 $ 144.7 $ 187.0
Single premium deposits 18.3 21.0 22.3 37.6 47.2
Reinsurance (19.1) (20.3) (21.4) (23.0) (22.6)
--------- --------- --------- --------- ---------
Total $ 115.9 $ 114.1 $ 136.7 $ 159.3 $ 211.6
========= ========= ========= ========= =========
Policyholder account balances & benefit reserves $ 2,755.3 $ 2,801.9 $ 2,911.0 $ 2,983.3 $ 3,085.1
Life insurance in force (in billions, face amt.) $ 61.7 $ 63.2 $ 65.2 $ 66.9 $ 69.4
Life insurance issued (in billions, face amt.) $ 2.7 $ 3.0 $ 3.1 $ 2.9 $ 3.8
ALL BUSINESSES:
- --------------
Net investment income (pretax) $ 594.9 $ 639.1 $ 609.1 $ 655.9 $ 654.9
Interest credited to contractholders $ 244.7 $ 248.7 $ 266.7 $ 290.4 $ 291.3
STATUTORY DATA:
- --------------
TRAVELERS INSURANCE COMPANY
Statutory capital and surplus $ 5,011.2 $ 4,977.4 $ 5,355.1 $ 5,123.4 $ 5,024.5
Surplus to liabilities ratio 20.5% 20.3% 21.3% 20.2% 18.8%
2Q 2001 VS. YTD YTD YTD 2Q 2001 VS.
2Q 2Q 2000 INCREASE/ 2Q 2Q YTD 2Q 2000 INCREASE/
2001 (DECREASE) 2000 2001 (DECREASE)
--------- ----------------- -------- -------- ---------------------
Total Revenues, Net of Interest Expense* $ 975 (1%) $ 1,993 $ 2,105 6%
Total Operating Expenses 87 (10%) 223 175 (22%)
Provision for Benefits and Claims 546 (7%) 1,189 1,275 7%
--------- -------- --------
Core Income Before Taxes 342 14% 581 655 13%
Income Taxes 111 13% 192 214 11%
--------- -------- --------
Core Income $ 231 14% $ 389 $ 441 13%
========= ======== ========
PRE-TAX CONTRIBUTION BY SOURCE:
- -------------------------------
Individual annuities $ 125 6% $ 226 $ 247 9%
Group annuities 134 18% 206 251 22%
Life and long-term care insurance 74 35% 115 137 19%
Other (includes run-off and return on excess capital) 9 (31%) 34 20 (41%)
--------- -------- --------
Total $ 342 14% $ 581 $ 655 13%
========= ======== ========
INDIVIDUAL ANNUITIES:
- --------------------
Net written premiums & deposits:
Fixed $ 571.5 89% $ 596.1 $ 998.7 68%
Variable 1,068.3 (15%) 2,503.5 2,167.0 (13%)
Individual Payout 14.7 (32%) 42.2 33.4 (21%)
--------- -------- --------
Total $ 1,654.5 5% $3,141.8 $3,199.1 2%
========= ======== ========
Policyholder account balances & benefit reserves: (1)
Fixed $ 8,609.3 9%
Variable 20,438.0 (3%)
Individual Payout 631.7 1%
---------
Total $29,679.0 --
=========
GROUP ANNUITIES:
- ----------------
Net written premiums & deposits (2) $ 1,397.4 (3%) $2,896.0 $3,899.0 35%
Policyholder account balances & benefit reserves: (1)
GIC's and other investment contracts $14,091.0 26%
Payout Group annuities 5,259.0 14%
---------
Total $19,350.0 22%
=========
INDIVIDUAL LIFE INSURANCE:
- -------------------------
Net written premiums and deposits:
Direct periodic premiums and deposits $ 142.1 25% $ 230.1 $ 329.1 43%
Single premium deposits 48.4 130% 39.3 95.6 143%
Reinsurance (24.1) (19%) (39.4) (46.7) (19%)
--------- -------- --------
Total $ 166.4 46% $ 230.0 $ 378.0 64%
========= ======== ========
Policyholder account balances & benefit reserves $ 3,193.1 14%
Life insurance in force (in billions, face amt.) $ 71.0 12%
Life insurance issued (in billions, face amt.) $ 2.9 (3%) $ 5.7 $ 6.7 18%
ALL BUSINESSES:
- --------------
Net investment income (pretax) $ 673.5 5% $1,234.0 $1,328.4 8%
Interest credited to contractholders $ 305.8 23% $ 493.4 $ 597.1 21%
STATUTORY DATA:
- --------------
TRAVELERS INSURANCE COMPANY
Statutory capital and surplus $ 5,047.8 1%
Surplus to liabilities ratio 18.9%
(1) Includes general account, separate accounts and managed funds.
(2) Excludes deposits of $28.0 and $12.0 for the first and second quarters 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)
CITIGROUP
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
---------- ---------- ---------- ---------- ---------- ----------
Total Revenues, Net of Interest Expense* $ 472 $ 479 $ 474 $ 490 $ 490 $ 497
Total Operating Expenses 162 159 177 161 169 172
Provision for Benefits and Claims 125 126 106 139 128 127
---------- ---------- ---------- ---------- ---------- ----------
Core Income Before Taxes 185 194 191 190 193 198
Income Taxes 66 69 67 66 68 70
---------- ---------- ---------- ---------- ---------- ----------
Core Income $ 119 $ 125 $ 124 $ 124 $ 125 $ 128
========== ========== ========== ========== ========== ==========
LIFE INSURANCE
- --------------
Face value (in billions) of:
Life insurance issued $ 15.0 $ 18.5 $ 16.8 $ 17.1 $ 16.3 $ 18.6
Life insurance in force $ 397.8 $ 403.6 $ 408.4 $ 412.7 $ 415.4 $ 422.9
Annualized issued premiums $ 44.1 $ 54.1 $ 49.5 $ 50.0 $ 47.4 $ 53.7
Direct premiums $ 324.5 $ 330.9 $ 333.3 $ 337.6 $ 340.4 $ 346.9
Earned premiums $ 270.6 $ 277.4 $ 275.0 $ 282.6 $ 284.0 $ 285.2
OTHER PRODUCTS
- --------------
Mutual fund sales at NAV:
Proprietary $ 465.0 $ 468.7 $ 448.5 $ 428.9 $ 479.9 $ 509.1
Other funds 497.1 552.5 397.8 368.5 330.1 259.1
---------- ---------- ---------- ---------- ---------- ----------
Total U.S. mutual fund sales 962.1 1,021.2 846.3 797.4 810.0 768.2
Mutual fund sales - Canada 228.8 128.1 117.4 119.0 183.8 100.1
---------- ---------- ---------- ---------- ---------- ----------
Total mutual fund sales $ 1,190.9 $ 1,149.3 $ 963.7 $ 916.4 $ 993.8 $ 868.3
========== ========== ========== ========== ========== ==========
Cash advanced on $.M.A.R.T. and $.A.F.E. loans (1) $ 492.0 $ 475.6 $ 457.2 $ 667.5 $ 694.5 $ 1,091.9
Variable annuity net written premiums and deposits $ 249.9 $ 248.0 $ 270.6 $ 288.2 $ 247.6 $ 237.1
AGENTS LICENSED FOR:
- -------------------
Life insurance 79,818 82,288 85,183 86,900 88,907 93,998
Mutual funds 25,570 25,968 27,300 27,961 27,671 28,766
$.M.A.R.T. / $.A.F.E. loans 93,055 99,481 105,640 116,491 125,450 133,200
Variable annuities 16,453 16,692 17,281 17,777 18,665 19,642
Long term care 8,010 7,785 9,612 10,134 10,869 11,319
Home & auto insurance 13,238 13,038 12,194 11,647 11,275 12,834
Financial Needs Analyses submitted 110,900 109,451 108,838 108,705 114,991 122,009
2Q 2001 VS. YTD YTD YTD 2Q 2001 VS.
2Q 2000 INCREASE/ 2Q 2Q YTD 2Q 2000 INCREASE/
(DECREASE) 2000 2001 (DECREASE)
----------------- ---------- ---------- ---------------------
Total Revenues, Net of Interest Expense* 4% $ 951 $ 987 4%
Total Operating Expenses 8% 321 341 6%
Provision for Benefits and Claims 1% 251 255 2%
---------- ----------
Core Income Before Taxes 2% 379 391 3%
Income Taxes 1% 135 138 2%
---------- ----------
Core Income 2% $ 244 $ 253 4%
========== ==========
LIFE INSURANCE
- --------------
Face value (in billions) of:
Life insurance issued 1% $ 33.5 $ 34.9 4%
Life insurance in force 5%
Annualized issued premiums (1%) $ 98.2 $ 101.1 3%
Direct premiums 5% $ 655.4 $ 687.3 5%
Earned premiums 3% $ 548.0 $ 569.2 4%
OTHER PRODUCTS
- --------------
Mutual fund sales at NAV:
Proprietary 9% $ 933.7 $ 989.0 6%
Other funds (53%) 1,049.6 589.2 (44%)
---------- ----------
Total U.S. mutual fund sales (25%) 1,983.3 1,578.2 (20%)
Mutual fund sales - Canada (22%) 356.9 283.9 (20%)
---------- ----------
Total mutual fund sales (24%) $ 2,340.2 $ 1,862.1 (20%)
========== ==========
Cash advanced on $.M.A.R.T. and $.A.F.E. loans (1) 130% $ 967.6 $ 1,786.4 85%
Variable annuity net written premiums and deposits (4%) $ 497.9 $ 484.7 (3%)
AGENTS LICENSED FOR:
- -------------------
Life insurance 14%
Mutual funds 11%
$.M.A.R.T. / $.A.F.E. loans 34%
Variable annuities 18%
Long term care 45%
Home & auto insurance (2%)
Financial Needs Analyses submitted 11% 220,351 237,000 8%
(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)
CITIGROUP
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
-------- ------- -------- -------- -------- --------
Total Revenues, Net of Interest Expense* $ 1,034 $ 1,050 $ 1,058 $ 1,088 $ 1,080 $ 1,106
Adjusted Operating Expenses 250 256 246 250 267 261
Claims and Claim Adjustment Expenses 659 673 717 718 688 793
-------- ------- -------- -------- -------- --------
Core Income Before Taxes and Minority Interest 125 121 95 120 125 52
Income Taxes 38 36 27 37 38 13
Minority Interest, Net of Tax 13 3 -- -- -- --
-------- ------- -------- -------- -------- --------
Core Income (1) $ 74 $ 82 $ 68 $ 83 $ 87 $ 39
======== ======= ======== ======== ======== ========
NET WRITTEN PREMIUMS BY PRODUCT LINE:
- ------------------------------------
Auto $ 588.7 $ 614.7 $ 608.7 $ 596.1 $ 639.1 $ 669.0
Homeowners and other 307.9 378.6 397.1 372.5 322.7 404.5
-------- ------- -------- -------- -------- --------
Total net written premiums (a) $ 896.6 $ 993.3 $1,005.8 $ 968.6 $ 961.8 $1,073.5
======== ======= ======== ======== ======== ========
NET WRITTEN PREMIUMS BY DISTRIBUTION CHANNEL:
- --------------------------------------------
Independent agents $ 691.9 $ 769.8 $ 779.2 $ 750.1 $ 749.1 $ 837.6
Alternative distribution 147.3 165.1 176.2 172.2 165.7 178.8
Other 57.4 58.4 50.4 46.3 47.0 57.1
-------- ------- -------- -------- -------- --------
Total net written premiums (a) $ 896.6 $ 993.3 $1,005.8 $ 968.6 $ 961.8 $1,073.5
======== ======= ======== ======== ======== ========
STATUTORY RATIO DEVELOPMENT:
- ---------------------------
Earned premiums (b) $ 917.2 $ 927.7 $ 937.8 $ 972.5 $ 957.9 $ 994.9
Losses and loss adjustment expenses (c) 661.5 674.0 719.3 721.0 688.5 793.1
Other underwriting expenses (d) 242.1 254.3 260.3 245.3 254.6 264.9
-------- ------- -------- -------- -------- --------
Total deductions 903.6 928.3 979.6 966.3 943.1 1,058.0
-------- ------- -------- -------- -------- --------
Statutory underwriting gain/(loss) $ 13.6 $ (0.6) $ (41.8) $ 6.2 $ 14.8 $ (63.1)
======== ======= ======== ======== ======== ========
STATUTORY COMBINED RATIO:
- ------------------------
Loss and loss adjustment expense ratio (c/b) 72.1% 72.7% 76.7% 74.1% 71.9% 79.7%
Other underwriting expense ratio (d/a) 27.0% 25.6% 25.9% 25.3% 26.5% 24.7%
-------- ------- -------- -------- -------- --------
Combined ratio 99.1% 98.3% 102.6% 99.4% 98.4% 104.4%
======== ======= ======== ======== ======== ========
Net investment income (pre-tax) $ 113.1 $ 115.2 $ 113.0 $ 107.7 $ 114.1 $ 102.7
Effective tax rate on net investment income 29.3% 29.5% 29.4% 29.2% 29.2% 28.1%
Catastrophe losses, net of reinsurance (after-tax) $ 30.4 $ 17.2 $ 1.9 $ 4.1 $ -- $ 42.3
2Q 2001 VS. YTD YTD YTD 2Q 2001 VS.
2Q 2000 INCREASE/ 2Q 2Q YTD 2Q 2000 INCREASE/
(DECREASE) 2000 2001 (DECREASE)
----------------- -------- -------- ---------------------
Total Revenues, Net of Interest Expense* 5% $ 2,084 $ 2,186 5%
Adjusted Operating Expenses 2% 506 528 4%
Claims and Claim Adjustment Expenses 18% 1,332 1,481 11%
-------- --------
Core Income Before Taxes and Minority Interest (57%) 246 177 (28%)
Income Taxes (64%) 74 51 (31%)
Minority Interest, Net of Tax (100%) 16 -- (100%)
-------- --------
Core Income (1) (52%) $ 156 $ 126 (19%)
======== ========
NET WRITTEN PREMIUMS BY PRODUCT LINE:
- ------------------------------------
Auto 9% $1,203.4 1,308.1 9%
Homeowners and other 7% 686.5 727.2 6%
-------- --------
Total net written premiums (a) 8% $1,889.9 $2,035.3 8%
======== ========
NET WRITTEN PREMIUMS BY DISTRIBUTION CHANNEL:
- --------------------------------------------
Independent agents 9% $1,461.7 $1,586.7 9%
Alternative distribution 8% 312.4 344.5 10%
Other (2%) 115.8 104.1 (10%)
-------- --------
Total net written premiums (a) 8% $1,889.9 $2,035.3 8%
======== ========
STATUTORY RATIO DEVELOPMENT:
- ---------------------------
Earned premiums (b) 7% $1,844.9 $1,952.8 6%
Losses and loss adjustment expenses (c) 18% 1,335.5 1,481.6 11%
Other underwriting expenses (d) 4% 496.4 519.5 5%
-------- --------
Total deductions 14% 1,831.9 2,001.1 9%
-------- --------
Statutory underwriting gain/(loss) NM $ 13.0 $ (48.3) NM
======== ========
STATUTORY COMBINED RATIO:
- ------------------------
Loss and loss adjustment expense ratio (c/b) 72.4% 75.9%
Other underwriting expense ratio (d/a) 26.3% 25.5%
-------- --------
Combined ratio 98.7% 101.4%
======== ========
Net investment income (pre-tax) (11%) $ 228.3 $ 216.8 (5%)
Effective tax rate on net investment income 29.4% 28.7%
Catastrophe losses, net of reinsurance (after-tax) 146% $ 47.6 $ 42.3 (11%)
(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.
NM - Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 10
GLOBAL CONSUMER - INTERNATIONAL
WESTERN EUROPE
(In millions of dollars)
CITIGROUP
2Q 2001 VS.
1Q 2Q 3Q 4Q 1Q 2Q 2Q 2000 INCREASE/
2000 2000 2000 2000 2001 2001 (DECREASE)
------ ------ ------ ------ ------ ------ -----------------
Total Revenues, Net of Interest Expense $ 618 $ 600 $ 579 $ 591 $ 622 $ 602 --
Adjusted Operating Expenses 363 365 333 335 350 332 (9%)
Provision for Benefits, Claims, and Credit Losses 104 92 97 97 99 101 10%
------ ------ ------ ------ ------ ------
Core Income Before Taxes 151 143 149 159 173 169 18%
Income Taxes 55 52 55 56 63 63 21%
------ ------ ------ ------ ------ ------
Core Income $ 96 $ 91 $ 94 $ 103 $ 110 $ 106 16%
====== ====== ====== ====== ====== ======
Average Assets (in billions of dollars) $ 22 $ 21 $ 21 $ 21 $ 21 $ 22 5%
====== ====== ====== ====== ====== ======
Return on Assets 1.76% 1.74% 1.78% 1.95% 2.12% 1.93%
====== ====== ====== ====== ====== ======
AVERAGE LOANS (in billions of dollars)
- --------------------------------------
Cards $ 2.3 $ 2.2 $ 2.2 $ 2.2 $ 2.0 $ 2.1 (5%)
Mortgages 2.1 2.1 2.1 2.1 2.2 2.2 5%
Auto 1.3 1.4 1.4 1.5 1.6 1.6 14%
Personal 10.1 10.0 9.9 9.9 10.4 10.1 1%
Other 1.1 1.1 1.1 1.0 1.1 1.1 --
------ ------ ------ ------ ------ ------
Total $ 16.9 $ 16.8 $ 16.7 $ 16.7 $ 17.3 $ 17.1 2%
====== ====== ====== ====== ====== ======
Average Customer Deposits (in billions of dollars) $ 13.0 $ 12.5 $ 12.1 $ 12.0 $ 12.9 $ 13.0 4%
EOP Accounts (in millions) 9.8 9.9 10.0 10.1 9.9 10.0 1%
EOP Card Accounts (in millions) 2.4 2.5 2.5 2.6 2.1 2.2 (12%)
Non-Interest Revenue as % of Total Revenues 32.3% 30.7% 30.8% 31.5% 28.9% 25.7%
Net Credit Loss Ratio (1) 1.88% 1.84% 2.01% 2.40% 1.92% 1.98%
Loan 90+ Days Past Due:
In millions of dollars $ 899 $ 892 $ 829 $ 835 $ 785 $ 740 (17%)
% 5.31% 5.18% 5.09% 4.78% 4.68% 4.34%
Proprietary Mutual Funds / UIT $ 353 $ 361 $ 222 $ 225 $ 189 $ 212 (41%)
Proprietary Money Market Funds 195 116 101 108 162 152 31%
------ ------ ------ ------ ------ ------
Total Proprietary Funds 548 477 323 333 351 364 (24%)
Third Party Funds 469 326 436 337 322 258 (21%)
------ ------ ------ ------ ------ ------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $1,017 $ 803 $ 759 $ 670 $ 673 $ 622 (23%)
====== ====== ====== ====== ====== ======
Branches 434 434 437 436 432 434 --
Consumer Finance Offices 128 131 132 130 131 128 (2%)
ATM-only locations 33 34 36 33 45 50 47%
Proprietary ATMs 839 859 875 883 888 909 6%
YTD YTD YTD 2Q 2001 VS.
2Q 2Q YTD 2Q 2000 INCREASE/
2000 2001 (DECREASE)
------ ------ ---------------------
Total Revenues, Net of Interest Expense $1,218 $1,224 --
Adjusted Operating Expenses 728 682 (6%)
Provision for Benefits, Claims, and Credit Losses 196 200 2%
------ ------
Core Income Before Taxes 294 342 16%
Income Taxes 107 126 18%
------ ------
Core Income $ 187 $ 216 16%
====== ======
Average Assets (in billions of dollars) $ 22 $ 22 --
====== ======
Return on Assets 1.71% 1.98%
====== ======
AVERAGE LOANS (in billions of dollars)
- --------------------------------------
Cards $ 2.3 $ 2.1 (9%)
Mortgages 2.1 2.2 5%
Auto 1.4 1.6 14%
Personal 10.1 10.3 2%
Other 1.0 1.0 --
------ ------
Total $ 16.9 $ 17.2 2%
====== ======
Average Customer Deposits (in billions of dollars) $ 12.8 $ 13.0 2%
EOP Accounts (in millions)
EOP Card Accounts (in millions)
Non-Interest Revenue as % of Total Revenues 30.1% 27.4%
Net Credit Loss Ratio (1)
Loan 90+ Days Past Due:
In millions of dollars
%
Proprietary Mutual Funds / UIT $ 714 $ 401 (44%)
Proprietary Money Market Funds 311 314 1%
------ ------
Total Proprietary Funds 1,025 715 (30%)
Third Party Funds 795 580 (27%)
------ ------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $1,820 $1,295 (29%)
====== ======
Branches
Consumer Finance Offices
ATM-only locations
Proprietary ATMs
(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)
CITIGROUP
2Q 2001 VS.
1Q 2Q 3Q 4Q 1Q 2Q 2Q 2000 INCREASE/
2000 2000 2000 2000 2001 2001 (DECREASE)
------ ------ ------ ------ ------ ------ -----------------
Total Revenues, Net of Interest Expense $ 591 $ 662 $ 713 $ 815 $ 825 $ 818 24%
Adjusted Operating Expenses 249 267 274 361 353 313 17%
Provision for Benefits, Claims, and Credit Losses 105 121 127 147 162 147 21%
------ ------ ------ ------ ------ ------
Core Income Before Taxes 237 274 312 307 310 358 31%
Income Taxes 87 101 108 105 112 129 28%
------ ------ ------ ------ ------ ------
Core Income $ 150 $ 173 $ 204 $ 202 $ 198 $ 229 32%
====== ====== ====== ====== ====== ======
Average Assets (in billions of dollars) $ 15 $ 16 $ 18 $ 20 $ 19 $ 20 25%
====== ====== ====== ====== ====== ======
Return on Assets 4.02% 4.35% 4.51% 4.02% 4.23% 4.59%
====== ====== ====== ====== ====== ======
AVERAGE LOANS (in billions of dollars)
- --------------------------------------
Mortgages $ 3.4 $ 3.8 $ 4.0 $ 4.2 $ 4.2 $ 4.3 13%
Cards 0.8 1.1 1.1 1.1 1.0 1.0 (9%)
Personal 5.2 5.8 6.8 8.0 7.9 8.3 43%
Other 0.2 0.2 0.3 0.3 0.4 0.4 100%
------ ------ ------ ------ ------ ------
Total $ 9.6 $ 10.9 $ 12.2 $ 13.6 $ 13.5 $ 14.0 28%
====== ====== ====== ====== ====== ======
Average Customer Deposits (in billions of dollars) $ 13.1 $ 13.5 $ 13.9 $ 13.9 $ 14.3 $ 14.7 9%
EOP Accounts (in millions) 4.0 4.1 4.6 4.8 4.9 5.0 22%
EOP Card Accounts (in millions) 0.9 0.9 1.0 1.0 1.0 1.0 11%
Non-Interest Revenue as % of Total Revenues 11.0% 12.0% 11.0% 10.4% 9.4% 10.5%
Net Credit Loss Ratio 3.68% 3.19% 3.15% 3.81% 4.06% 3.74%
Loan 90+ Days Past Due:
In millions of dollars $ 103 $ 100 $ 105 $ 101 $ 107 $ 129 29%
% 0.99% 0.83% 0.76% 0.73% 0.81% 0.91%
Proprietary Mutual Funds / UIT $ 67 $ 78 $ 178 $ 75 $ 99 $ 130 67%
Proprietary Money Market Funds 273 246 207 71 91 116 (53%)
------ ------ ------ ------ ------ ------
Total Proprietary Funds 340 324 385 146 190 246 (24%)
Third Party Funds 113 104 36 110 92 84 (19%)
------ ------ ------ ------ ------ ------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $ 453 $ 428 $ 421 $ 256 $ 282 $ 330 (23%)
====== ====== ====== ====== ====== ======
Branches 22 22 22 22 22 22 --
Consumer Finance Offices 685 742 878 902 902 907 22%
ATM-only locations/Unmanned Kiosks 78 110 140 161 205 269 145%
Proprietary ATMs 61 61 61 61 61 62 2%
YTD YTD YTD 2Q 2001 VS.
2Q 2Q YTD 2Q 2000 INCREASE/
2000 2001 (DECREASE)
------ ------ ---------------------
Total Revenues, Net of Interest Expense $1,253 $1,643 31%
Adjusted Operating Expenses 516 666 29%
Provision for Benefits, Claims, and Credit Losses 226 309 37%
------ ------
Core Income Before Taxes 511 668 31%
Income Taxes 188 241 28%
------ ------
Core Income $ 323 $ 427 32%
====== ======
Average Assets (in billions of dollars) $ 16 $ 20 25%
====== ======
Return on Assets 4.06% 4.31%
====== ======
AVERAGE LOANS (in billions of dollars)
- --------------------------------------
Mortgages $ 3.6 $ 4.3 19%
Cards 1.0 1.0 --
Personal 5.5 8.1 47%
Other 0.2 0.4 100%
------ ------
Total $ 10.3 $ 13.8 34%
====== ======
Average Customer Deposits (in billions of dollars) $ 13.3 $ 14.5 9%
EOP Accounts (in millions)
EOP Card Accounts (in millions)
Non-Interest Revenue as % of Total Revenues 11.5% 10.0%
Net Credit Loss Ratio
Loan 90+ Days Past Due:
In millions of dollars
%
Proprietary Mutual Funds / UIT $ 145 $ 229 58%
Proprietary Money Market Funds 519 207 (60%)
------ ------
Total Proprietary Funds 664 436 (34%)
Third Party Funds 217 176 (19%)
------ ------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $ 881 $ 612 (31%)
====== ======
Branches
Consumer Finance Offices
ATM-only locations/Unmanned Kiosks
Proprietary ATMs
Reclassified to conform to the current period's presentation.
PAGE 12
GLOBAL CONSUMER - INTERNATIONAL
ASIA (EXCLUDING JAPAN)
(In millions of dollars) [CITIGROUP LOGO]
2Q 2001 VS. YTD 2Q 2001 VS.
2Q 2000 YTD YTD YTD 2Q 2000
1Q 2Q 3Q 4Q 1Q 2Q INCREASE/ 2Q 2Q INCREASE/
2000 2000 2000 2000 2001 2001 (DECREASE) 2000 2001 (DECREASE)
------ ------ ------ ------ ------ ------ ---------- ------ ------ ----------
Total Revenues, Net
of Interest Expense $ 539 $ 519 $ 521 $ 517 $ 540 $ 539 4% $1,058 $1,079 2%
Adjusted Operating Expenses 246 241 235 247 244 242 -- 487 486 --
Provision for Benefits,
Claims, and Credit Losses 74 62 71 66 62 67 8% 136 129 (5%)
------ ------ ------ ------ ------ ------ ------ ------
Core Income Before Taxes 219 216 215 204 234 230 6% 435 464 7%
Income Taxes 78 77 76 73 87 83 8% 155 170 10%
------ ------ ------ ------ ------ ------ ------ ------
Core Income $ 141 $ 139 $ 139 $ 131 $ 147 $ 147 6% $ 280 $ 294 5%
====== ====== ====== ====== ====== ====== ====== ======
Average Assets
(in billions of dollars) $ 27 $ 26 $ 27 $ 26 $ 25 $ 25 (4%) $ 27 $ 25 (7%)
====== ====== ====== ====== ====== ====== ====== ======
Return on Assets 2.10% 2.15% 2.05% 2.00% 2.38% 2.36% 2.09% 2.37%
====== ====== ====== ====== ====== ====== ====== ======
AVERAGE LOANS
- -------------
(in billions of dollars)
Mortgages $ 12.5 $ 12.2 $ 12.0 $ 11.6 $ 11.5 $ 11.2 (8%) $ 12.4 $ 11.4 (8%)
Cards 4.7 4.7 4.8 4.8 4.8 4.8 2% 4.7 4.8 2%
Auto 2.3 2.3 2.4 2.4 2.4 2.3 0% 2.3 2.4 4%
Personal 1.2 1.2 1.3 1.3 1.3 1.3 8% 1.2 1.3 8%
Other 1.9 1.8 1.8 1.7 1.6 1.6 (11%) 1.8 1.5 (17%)
------ ------ ------ ------ ------ ------ ------ ------
Total $ 22.6 $ 22.2 $ 22.3 $ 21.8 $ 21.6 $ 21.2 (5%) $ 22.4 $ 21.4 (4%)
====== ====== ====== ====== ====== ====== ====== ======
Average Customer Deposits
(in billions of dollars) $ 34.2 $ 34.4 $ 35.1 $ 35.1 $ 36.1 $ 35.5 3% $ 34.3 $ 35.8 4%
EOP Accounts (in millions) 7.3 7.5 7.8 8.1 8.4 8.8 17%
EOP Card Accounts (in millions) 4.4 4.5 4.7 4.9 5.1 5.6 24%
Non-Interest Revenue
as % of Total Revenues 34.5% 31.2% 32.4% 30.7% 31.5% 30.4% 32.9% 31.0%
Net Credit Loss Ratio 1.24% 1.07% 1.14% 1.18% 1.14% 1.23%
Loans 90+ Days Past Due:
In millions of dollars $ 433 $ 396 $ 350 $ 335 $ 334 $ 338 (15%)
% 1.92% 1.75% 1.57% 1.51% 1.58% 1.59%
Proprietary Mutual Funds / UIT $ 91 $ 109 $ 133 $ 208 $ 120 $ 315 189% $ 200 $ 435 118%
Proprietary Money Market Funds 93 62 49 97 91 68 10% 155 159 3%
------ ------ ------ ------ ------ ------ ------ ------
Total Proprietary Funds 184 171 182 305 211 383 124% 355 594 67%
Third Party Funds 1,821 840 969 977 813 819 (3%) 2,661 1,632 (39%)
------ ------ ------ ------ ------ ------ ------ ------
Mutual Fund/UIT Sales at NAV
(in millions of dollars) $2,005 $1,011 $1,151 $1,282 $1,024 $1,202 19% $3,016 $2,226 (26%)
====== ====== ====== ====== ====== ====== ====== ======
Branches 71 73 76 77 77 77 5%
ATM-only locations 79 75 74 73 77 75 --
Proprietary ATMs 300 300 301 303 303 302 1%
Reclassified to conform to the current period's presentation.
PAGE 13
GLOBAL CONSUMER - INTERNATIONAL
LATIN AMERICA
(In millions of dollars) [CITIGROUP LOGO]
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
-------- -------- -------- -------- -------- --------
Total Revenues, Net of Interest Expense (1) $ 513 $ 466 $ 436 $ 526 $ 471 $ 480
Adjusted Operating Expenses 325 330 321 341 339 328
Provision for Benefits, Claims, and Credit Losses (1) 90 76 69 100 89 87
-------- -------- -------- -------- -------- --------
Core Income Before Taxes 98 60 46 85 43 65
Income Taxes 34 21 16 19 13 20
-------- -------- -------- -------- -------- --------
Core Income $ 64 $ 39 $ 30 $ 66 $ 30 $ 45
======== ======== ======== ======== ======== ========
Average Assets (in billions of dollars) $ 14 $ 12 $ 11 $ 11 $ 13 $ 13
======== ======== ======== ======== ======== ========
Return on Assets 1.84% 1.31% 1.08% 2.39% 0.94% 1.39%
======== ======== ======== ======== ======== ========
AVERAGE LOANS (in billions of dollars)
- --------------------------------------
Mortgages $ 2.0 $ 2.0 $ 2.1 $ 2.1 $ 2.1 $ 2.0
Cards 1.8 1.8 1.7 1.7 1.7 1.7
Auto 1.5 1.1 0.9 0.9 0.8 0.7
Personal 1.8 1.8 1.8 1.8 1.8 1.7
Other 0.5 0.5 0.5 0.5 0.4 0.5
-------- -------- -------- -------- -------- --------
Total $ 7.6 $ 7.2 $ 7.0 $ 7.0 $ 6.8 $ 6.6
======== ======== ======== ======== ======== ========
Average Customer Deposits (in billions of dollars) $ 13.7 $ 13.6 $ 13.4 $ 13.3 $ 13.8 $ 13.6
EOP Accounts (in millions) 8.9 9.3 9.3 9.3 9.4 9.4
EOP Card Accounts (in millions) 2.0 1.9 1.9 2.0 2.0 2.0
Non-Interest Revenue as % of Total Revenues 36.7% 37.4% 39.8% 46.0% 39.6% 37.6%
Net Credit Loss Ratio (2) 4.77% 4.25% 3.89% 5.58% 4.24% 4.22%
Loan 90+ Days Past Due:
In millions of dollars $ 333 $ 323 $ 319 $ 250 $ 318 $ 310
% 4.55% 4.52% 4.55% 3.66% 4.76% 4.80%
Proprietary Mutual Funds/UIT Funds $ 357 $ 193 $ 294 $ 185 $ 459 $ 280
Proprietary Money Market Funds 1,174 1,167 939 996 831 898
-------- -------- -------- -------- -------- --------
Total Proprietary Funds $ 1,531 $ 1,360 $ 1,233 $ 1,181 $ 1,290 $ 1,178
Third Party Funds 218 146 126 129 148 130
-------- -------- -------- -------- -------- --------
Mutual Fund/UIT Sales at NAV (in millions of dollars) $ 1,749 $ 1,506 $ 1,359 $ 1,310 $ 1,438 $ 1,308
======== ======== ======== ======== ======== ========
Branches 453 447 404 406 404 405
Consumer Finance Offices 101 101 101 110 120 119
ATM-only locations 84 84 89 85 86 87
Proprietary ATMs 749 753 730 718 727 714
2Q 2001 VS. YTD 2Q 2001 VS.
2Q 2000 YTD YTD YTD 2Q 2000
INCREASE/ 2Q 2Q INCREASE/
(DECREASE) 2000 2001 (DECREASE)
---------- -------- -------- ----------
Total Revenues, Net of Interest Expense (1) 3% $ 979 $ 951 (3%)
Adjusted Operating Expenses (1%) 655 667 2%
Provision for Benefits, Claims, and Credit Losses (1) 14% 166 176 6%
-------- --------
Core Income Before Taxes 8% 158 108 (32%)
Income Taxes (5%) 55 33 (40%)
-------- --------
Core Income 15% $ 103 $ 75 (27%)
======== ========
Average Assets (in billions of dollars) 8% $ 13 $ 13 --
======== ========
Return on Assets 1.59% 1.16%
======== ========
AVERAGE LOANS (in billions of dollars)
- --------------------------------------
Mortgages -- $ 2.0 $ 2.1 5%
Cards (6%) 1.8 1.7 (6%)
Auto (36%) 1.3 0.8 (38%)
Personal (6%) 1.8 1.8 --
Other -- 0.5 0.3 (40%)
-------- --------
Total (8%) $ 7.4 $ 6.7 (9%)
======== ========
Average Customer Deposits (in billions of dollars) -- $ 13.7 $ 13.7 --
EOP Accounts (in millions) 1%
EOP Card Accounts (in millions) 5%
Non-Interest Revenue as % of Total Revenues 37.1% 38.6%
Net Credit Loss Ratio (2)
Loan 90+ Days Past Due:
In millions of dollars (4%)
%
Proprietary Mutual Funds/UIT Funds 45% $ 550 $ 739 34%
Proprietary Money Market Funds (23%) 2,341 1,729 (26%)
-------- --------
Total Proprietary Funds (13%) $ 2,891 $ 2,468 (15%)
Third Party Funds (11%) 364 278 (24%)
-------- --------
Mutual Fund/UIT Sales at NAV (in millions of dollars) (13%) $ 3,255 $ 2,746 (16%)
======== ========
Branches (9%)
Consumer Finance Offices 18%
ATM-only locations 4%
Proprietary ATMs (5%)
(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) [CITIGROUP LOGO]
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
-------- -------- -------- -------- -------- --------
Total Revenues, Net of Interest Expense $ 100 $ 106 $ 112 $ 120 $ 130 $ 135
Adjusted Operating Expenses 67 76 88 101 93 94
Provision for Benefits, Claims, and Credit Losses 10 8 7 8 9 10
-------- -------- -------- -------- -------- --------
Core Income Before Taxes 23 22 17 11 28 31
Income Taxes 8 7 5 3 10 10
-------- -------- -------- -------- -------- --------
Core Income $ 15 $ 15 $ 12 $ 8 $ 18 $ 21
======== ======== ======== ======== ======== ========
Average Assets (in billions of dollars) $ 3 $ 3 $ 3 $ 4 $ 4 $ 4
======== ======== ======== ======== ======== ========
Return on Assets 2.01% 2.01% 1.59% 0.80% 1.83% 2.11%
======== ======== ======== ======== ======== ========
AVERAGE LOANS (in billions of dollars)
- --------------------------------------
Cards $ 0.5 $ 0.5 $ 0.6 $ 0.6 $ 0.6 $ 0.6
Mortgages 0.2 0.2 0.2 0.2 0.2 0.2
Auto 0.3 0.3 0.3 0.3 0.4 0.4
Personal 0.4 0.4 0.4 0.5 0.5 0.6
Other 0.5 0.5 0.4 0.4 0.5 0.5
-------- -------- -------- -------- -------- --------
Total $ 1.9 $ 1.9 $ 1.9 $ 2.0 $ 2.2 $ 2.3
======== ======== ======== ======== ======== ========
Average Customer Deposits (in billions of dollars) $ 3.6 $ 3.7 $ 3.9 $ 4.2 $ 5.6 $ 5.8
EOP Accounts (in millions) 2.2 2.4 2.7 2.8 3.3 3.5
EOP Card Accounts (in millions) 1.5 1.6 1.7 1.8 1.9 1.9
Non-Interest Revenue as % of Total Revenues 42.4% 42.6% 40.1% 40.9% 39.2% 41.7%
Net Credit Loss Ratio (1) 2.60% 1.66% 1.45% 2.10% 1.66% 1.70%
Loans 90+ Days Past Due:
In millions of dollars $ 40 $ 38 $ 34 $ 32 $ 33 $ 32
% 2.16% 1.95% 1.73% 1.37% 1.40% 1.31%
Proprietary Mutual Funds / UIT $ 7 $ 21 $ 11 $ 9 $ 4 $ 3
Proprietary Money Market Funds 1 1 1 1 -- 1
-------- -------- -------- -------- -------- --------
Total Proprietary Funds 8 22 12 10 4 4
Third Party Funds 154 116 72 36 90 138
-------- -------- -------- -------- -------- --------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $ 162 $ 138 $ 84 $ 46 $ 94 $ 142
======== ======== ======== ======== ======== ========
Branches 36 145 159 162 169 178
ATM-only locations 50 53 57 65 76 93
Proprietary ATMs 112 113 119 129 144 185
2Q 2001 VS. YTD 2Q 2001 VS.
2Q 2000 YTD YTD YTD 2Q 2000
INCREASE/ 2Q 2Q INCREASE/
(DECREASE) 2000 2001 (DECREASE)
---------- -------- -------- ----------
Total Revenues, Net of Interest Expense 27% $ 206 $ 265 29%
Adjusted Operating Expenses 24% 143 187 31%
Provision for Benefits, Claims, and Credit Losses 25% 18 19 6%
-------- --------
Core Income Before Taxes 41% 45 59 31%
Income Taxes 43% 15 20 33%
-------- --------
Core Income 40% $ 30 $ 39 30%
======== ========
Average Assets (in billions of dollars) 33% $ 3 $ 4 33%
======== ========
Return on Assets 2.01% 1.97%
======== ========
AVERAGE LOANS (in billions of dollars)
- --------------------------------------
Cards 20% $ 0.5 $ 0.6 20%
Mortgages -- 0.2 0.2 --
Auto 33% 0.3 0.4 33%
Personal 50% 0.4 0.6 50%
Other -- 0.5 0.5 --
-------- --------
Total 21% $ 1.9 $ 2.3 21%
======== ========
Average Customer Deposits (in billions of dollars) 57% $ 3.7 $ 5.7 54%
EOP Accounts (in millions) 46%
EOP Card Accounts (in millions) 19%
Non-Interest Revenue as % of Total Revenues (2%) 42.5% 40.5%
Net Credit Loss Ratio (1)
Loans 90+ Days Past Due:
In millions of dollars (16%)
%
Proprietary Mutual Funds / UIT (86%) $ 28 $ 7 (75%)
Proprietary Money Market Funds -- 2 1 (50%)
-------- --------
Total Proprietary Funds (82%) 30 8 (73%)
Third Party Funds 19% 270 228 (16%)
-------- --------
Mutual Fund / UIT Sales at NAV (in millions of dollars) 3% $ 300 $ 236 (21%)
======== ========
Branches 23%
ATM-only locations 75%
Proprietary ATMs 64%
(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) [CITIGROUP LOGO]
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
--------- --------- --------- --------- --------- ---------
Total Revenues, Net of Interest Expense $ 33 $ (19) $ 94 $ 56 $ 10 $ 57
Adjusted Operating Expenses 97 45 79 14 33 82
Provision for Loan Losses (4) (8) 26 (9) (29) (11)
--------- --------- --------- --------- --------- ---------
Core Income (Loss) Before Taxes (Benefits) (60) (56) (11) 51 6 (14)
Income Taxes (Benefits) (22) (23) (4) 14 2 (5)
--------- --------- --------- --------- --------- ---------
Core Income (Loss) $ (38) $ (33) $ (7) $ 37 $ 4 $ (9)
========= ========= ========= ========= ========= =========
2Q 2001 VS. YTD 2Q 2001 VS.
2Q 2000 YTD YTD YTD 2Q 2000
INCREASE/ 2Q 2Q INCREASE/
(DECREASE) 2000 2001 (DECREASE)
---------- --------- --------- --------------
Total Revenues, Net of Interest Expense NM $ 14 $ 67 NM
Adjusted Operating Expenses 82% 142 115 (19%)
Provision for Loan Losses (38%) (12) (40) NM
--------- ---------
Core Income (Loss) Before Taxes (Benefits) 75% (116) (8) 93%
Income Taxes (Benefits) 78% (45) (3) 93%
--------- ---------
Core Income (Loss) 73% $ (71) $ (5) 93%
========= =========
(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) [CITIGROUP LOGO]
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
-------- -------- -------- -------- -------- --------
Revenues:
Commissions and Fees $ 1,338 $ 1,049 $ 1,021 $ 1,073 $ 1,044 $ 940
Asset Management and Administration Fees 500 546 551 572 536 503
Investment Banking 999 964 1,123 1,001 1,235 1,139
Principal Transactions 1,289 993 1,114 841 1,561 835
Other Income 281 301 181 207 296 137
-------- -------- -------- -------- -------- --------
Total Non-Interest Revenues 4,407 3,853 3,990 3,694 4,672 3,554
Net Interest and Dividends 873 948 925 996 998 1,128
-------- -------- -------- -------- -------- --------
Total Revenues, Net of Interest Expense 5,280 4,801 4,915 4,690 5,670 4,682
-------- -------- -------- -------- -------- --------
Non-Interest Expenses:
Compensation and Benefits 2,410 2,412 2,540 2,460 2,892 2,314
Communications 223 242 254 276 256 249
Occupancy and Equipment 166 175 182 194 195 186
Floor Brokerage and Other Production 162 161 184 183 213 176
Other Operating and Administrative Expenses 202 290 257 269 314 120
-------- -------- -------- -------- -------- --------
Total Non-Interest Expenses 3,163 3,280 3,417 3,382 3,870 3,045
-------- -------- -------- -------- -------- --------
Provision for Credit Losses 90 160 113 392 230 230
-------- -------- -------- -------- -------- --------
Core Income Before Taxes and Minority Interest 2,027 1,361 1,385 916 1,570 1,407
Income Taxes and Minority Interest, Net of Tax 750 457 504 331 558 488
-------- -------- -------- -------- -------- --------
Core Income $ 1,277 $ 904 $ 881 $ 585 $ 1,012 $ 919
======== ======== ======== ======== ======== ========
Pre-tax profit Margin 38.4% 28.3% 28.2% 19.5% 27.7% 30.1%
Non-Compensation Expenses as a Percent of
Net Revenues 14.3% 18.1% 17.8% 19.7% 17.2% 15.6%
Compensation and Benefits Expenses as a Percent of
Net Revenues 45.6% 50.2% 51.7% 52.5% 51.0% 49.4%
2Q 2001 VS. YTD 2Q 2001 VS.
2Q 2000 YTD YTD YTD 2Q 2000
INCREASE/ 2Q 2Q INCREASE/
(DECREASE) 2000 2001 (DECREASE)
---------- -------- -------- ----------
Revenues:
Commissions and Fees (10%) $ 2,387 $ 1,984 (17%)
Asset Management and Administration Fees (8%) 1,046 1,039 (1%)
Investment Banking 18% 1,963 2,374 21%
Principal Transactions (16%) 2,282 2,396 5%
Other Income (54%) 582 433 (26%)
-------- --------
Total Non-Interest Revenues (8%) 8,260 8,226 --
Net Interest and Dividends 19% 1,821 2,126 17%
-------- --------
Total Revenues, Net of Interest Expense (2%) 10,081 10,352 3%
-------- --------
Non-Interest Expenses:
Compensation and Benefits (4%) 4,822 5,206 8%
Communications 3% 465 505 9%
Occupancy and Equipment 6% 341 381 12%
Floor Brokerage and Other Production 9% 323 389 20%
Other Operating and Administrative Expenses (59%) 492 434 (12%)
-------- --------
Total Non-Interest Expenses (7%) 6,443 6,915 7%
-------- --------
Provision for Credit Losses 44% 250 460 84%
-------- --------
Core Income Before Taxes and Minority Interest 3% 3,388 2,977 (12%)
Income Taxes and Minority Interest, Net of Tax 7% 1,207 1,046 (13%)
-------- --------
Core Income 2% $ 2,181 $ 1,931 (11%)
======== ========
Pre-tax profit Margin 33.6% 28.8%
Non-Compensation Expenses as a Percent of
Net Revenues 16.1% 16.5%
Compensation and Benefits Expenses as a Percent of
Net Revenues 47.8% 50.3%
Reclassified to conform to the current period's presentation
PAGE 17
GLOBAL CORPORATE
SALOMON SMITH BARNEY
(In millions of dollars) [CITIGROUP LOGO]
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
----------- --------- ---------- ---------- ---------- ----------
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 $ 149.1
Financial Consultant (FC) Managed 55.4 58.2 62.2 56.2 51.9 57.0
----------- --------- ---------- ---------- ---------- ----------
Total assets under fee-based management (1) $ 188.5 $ 194.0 $ 202.4 $ 201.8 $ 186.3 $ 206.1
=========== ========= ========== ========== ========== ==========
Total client assets $ 1,032.2 $ 1,031.5 $ 1,047.3 $ 977.2 $ 910.5 $ 981.0
PRIVATE CLIENT
- --------------
Registered FC's 11,414 11,686 11,903 12,127 12,432 12,549
Annualized retail gross production per FC (000) $ 599 $ 498 $ 483 $ 463 $ 439 $ 402
Domestic retail offices 482 492 503 513 521 521
INVESTMENT BANKING AND PUBLIC FINANCE
- -------------------------------------
UNDERWRITING (FULL CREDIT TO BOOK MANAGER):
- ------------------------------------------
Debt and equity
Global volume (2) $ 91,890.5 $87,434.0 $ 83,604.8 $ 75,789.3 $123,600.8 $114,075.5
Global market share 10.1% 11.5% 10.6% 11.7% 11.9% 11.0%
Rank 3 2 2 2 2 2
U.S. volume (3) $ 72,172.3 $63,230.8 $ 67,315.6 $ 60,312.0 $103,725.2 $ 92,270.0
U.S. market share 12.3% 13.0% 12.9% 13.7% 14.5% 12.7%
Rank 2 2 2 1 2 2
Municipals
Volume (4) $ 4,875.2 $ 7,689.0 $ 6,120.1 $ 6,520.3 $ 8,688.3 $ 10,409.0
Market share 12.0% 13.9% 12.6% 11.7% 14.8% 13.6%
Rank 1 1 1 2 1 1
CAPITAL MARKETS/RESEARCH
- ------------------------
Number of stocks in which markets are made 1,416 1,442 1,612 1,873 1,834 1,521
% of S&P Groups covered by research 98% 100% 98% 100% 99% 99%
Total equity (in billions of dollars) (5) $ 9.9 $ 10.3 $ 10.7 $ 11.1 $ 11.8 $ 12.2
Return on equity (5) 41.1% 26.2% 26.7% 25.7% 28.4% 25.5%
2Q 2001 VS. YTD 2Q 2001 VS.
2Q 2000 YTD YTD YTD 2Q 2000
INCREASE/ 2Q 2Q INCREASE/
(DECREASE) 2000 2001 (DECREASE)
---------- ---------- ---------- ---------------
CLIENT ASSETS (IN BILLIONS OF DOLLARS)
Assets under fee-based management:
Consulting Group and Internally Managed 10% $ 135.8 $ 149.1 10%
Financial Consultant (FC) Managed (2%) 58.2 57.0 (2%)
---------- ----------
Total assets under fee-based management (1) 6% $ 194.0 $ 206.1 6%
========== ==========
Total client assets (5%) $ 1,031.5 $ 981.0 (5%)
PRIVATE CLIENT
- --------------
Registered FC's 7% 11,686 12,549 7%
Annualized retail gross production per FC (000) (19%) $ 548 $ 420 (23%)
Domestic retail offices 6% 492 521 6%
INVESTMENT BANKING AND PUBLIC FINANCE
- -------------------------------------
UNDERWRITING (FULL CREDIT TO BOOK MANAGER):
- ------------------------------------------
Debt and equity
Global volume (2) 30% $179,324.5 $237,676.3 33%
Global market share 10.7% 11.5%
Rank 2 2
U.S. volume (3) 46% $135,403.1 $195,995.2 45%
U.S. market share 12.6% 13.6%
Rank 2 2
Municipals
Volume (4) 35% $ 12,564.2 $ 19,097.3 52%
Market share 13.1% 14.1%
Rank 1 1
CAPITAL MARKETS/RESEARCH
- ------------------------
Number of stocks in which markets are made 5% 1,442 1,521 5%
% of S&P Groups covered by research 100.0% 99%
Total equity (in billions of dollars) (5) 18% $ 10.3 $ 12.2 18%
Return on equity (5) 33.5% 26.9%
(1) Includes some assets jointly managed with Citigroup Asset Management.
(2) Includes 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, all common stock,
convertible debt and convertible preferred. Excludes all closed end funds.
(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 [CITIGROUP LOGO]
EMERGING MARKETS CORPORATE BANKING AND GLOBAL TRANSACTION SERVICES
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
------ ------ ------- ------ ------ --------
Total Revenues, Net of Interest Expense $1,571 $1,629 $1,660 $1,712 $1,891 $1,852
Adjusted Operating Expenses 949 1,000 998 1,039 1,120 1,052
Provision for Loan Losses 87 80 24 1 47 59
------ ------ ------- ------ ------ --------
Core Income Before Taxes and Minority Interest 535 549 638 672 724 741
Income Taxes 195 201 233 242 264 266
Minority Interest, Net of Tax -- 3 8 5 4 8
------ ------ ------- ------ ------ --------
Core Income $ 340 $ 345 $ 397 $ 425 $ 456 $ 467
====== ====== ======= ====== ====== ========
Average Assets (in billions of dollars) $ 97 $ 101 $ 106 $ 111 $ 114 $ 118
====== ====== ======= ====== ====== ========
Return on Assets 1.41% 1.37% 1.49% 1.52% 1.62% 1.59%
====== ====== ======= ====== ====== ========
2Q 2001 VS. YTD YTD YTD 2Q 2001 VS.
2Q 2000 INCREASE/ 2Q 2Q YTD 2Q 2000 INCREASE/
(DECREASE) 2000 2001 (DECREASE)
----------------- --------- --------- ----------------------
Total Revenues, Net of Interest Expense 14% $3,200 $3,743 17%
Adjusted Operating Expenses 5% 1,949 2,172 11%
Provision for Loan Losses (26%) 167 106 (37%)
-------- -------
Core Income Before Taxes and Minority Interest 35% 1,084 1,465 35%
Income Taxes 32% 396 530 34%
Minority Interest, Net of Tax 167% 3 12 300%
-------- -------
Core Income 35% $ 685 $ 923 35%
======== =======
Average Assets (in billions of dollars) 17% $ 99 $ 116 17%
======== =======
Return on Assets 1.39% 1.60%
======== =======
Reclassified to conform to the current period's presentation.
PAGE 19
GLOBAL CORPORATE - INSURANCE
COMMERCIAL LINES INSURANCE
(In millions of dollars) [CITIGROUP LOGO]
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
----------- ----------- ----------- ------------ ----------- ---------
Total Revenues, Net of Interest Expense* $ 1,719 $ 1,788 $ 1,928 $ 2,062 $ 1,970 $ 2,018
Total Operating Expenses 397 403 380 519 499 506
Claims and Claim Adjustment Expenses 931 1,009 1,114 1,200 1,095 1,124
---------- ---------- ---------- ---------- ---------- ---------
Core Income Before Taxes and Minority Interest 391 376 434 343 376 388
Income Taxes 102 96 117 86 98 102
Minority Interest, Net of Tax 42 8 - - - -
---------- ---------- ---------- ---------- ---------- ---------
Core Income (1) $ 247 $ 272 $ 317 $ 257 $ 278 $ 286
========== ========== ========== ========== ========== =========
NET WRITTEN PREMIUMS BY MARKET: (2)
- -----------------------------------
Commercial accounts $ 487.4 $ 457.4 $ 563.1 $ 591.0 $ 546.9 $ 527.1
Select accounts 387.3 406.8 382.4 398.9 429.4 439.6
Specialty accounts 332.5 481.0 463.6 478.3 556.8 512.5
National accounts 92.0 58.5 131.4 70.4 126.2 77.0
---------- ---------- ---------- ---------- ---------- ---------
Total net written premiums(a) $ 1,299.2 $ 1,403.7 $ 1,540.5 $ 1,538.6 $ 1,659.3 $ 1,556.2
========== ========== ========== ========== ========== =========
STATUTORY RATIO DEVELOPMENT:
- ----------------------------
Earned premiums(b) $ 1,220.2 $ 1,275.0 $ 1,402.8 $ 1,471.4 $ 1,481.6 $ 1,504.6
Losses and loss adjustment expenses(c) 880.0 959.9 1,079.7 1,152.5 1,049.7 1,089.8
Other underwriting expenses (d) 367.1 424.8 409.4 432.3 493.0 449.1
---------- ---------- ---------- ---------- ---------- ---------
Total deductions 1,247.1 1,384.7 1,489.1 1,584.8 1,542.7 1,538.9
---------- ---------- ---------- ---------- ---------- ---------
Statutory underwriting loss $ (26.9) $ (109.7) $ (86.3) $ (113.4) $ (61.1) $ (34.3)
========== ========== ========== ========== ========== =========
STATUTORY COMBINED RATIO: (2), (3)
- -----------------------------------
Loss and loss adjustment expense ratio (c / b) 72.1% 75.3% 77.0% 78.3% 70.8% 72.4%
Other underwriting expense ratio (d / a) 28.3% 30.3% 26.6% 28.1% 29.7% 28.9%
---------- ---------- ---------- ---------- ---------- ---------
Combined ratio 100.4% 105.6% 103.6% 106.4% 100.5% 101.3%
========== ========== ========== ========== ========== =========
Net investment income (pre-tax) $ 451.3 $ 454.6 $ 435.6 $ 440.7 $ 435.0 $ 435.7
Effective tax rate on net investment income 26.8% 26.8% 26.5% 26.5% 26.6% 26.8%
Catastrophe losses, net of reinsurance (after-tax) $ - $ - $ -- $ -- $ 8.2 $ 12.3
2Q 2001 VS. YTD YTD YTD 2Q 2001 VS
2Q 2000 INCREASE/ 2Q 2Q YTD 2Q 2000 INCREASE/
(DECREASE) 2000 2001 (DECREASE)
-------------------- --------- ---------- -----------------------
Total Revenues, Net of Interest Expense* 13% $ 3,507 $ 3,988 14%
Total Operating Expenses 26% 800 1,005 26%
Claims and Claim Adjustment Expenses 11% 1,940 2,219 14%
-------- -----------
Core Income Before Taxes and Minority Interest 3% 767 764 -
Income Taxes 6% 198 200 1%
Minority Interest, Net of Tax (100%) 50 - (100%)
-------- -----------
Core Income (1) 5% $ 519 $ 564 9%
======== ===========
NET WRITTEN PREMIUMS BY MARKET: (2)
-----------------------------------
Commercial accounts 15% $ 944.8 $ 1,074.0 14%
Select accounts 8% 794.1 869.0 9%
Specialty accounts 7% 813.5 1,069.3 31%
National accounts 32% 150.5 203.2 35%
-------- -----------
Total net written premiums (a) 11% $2,702.9 $ 3,215.5 19%
======== ===========
STATUTORY RATIO DEVELOPMENT:
----------------------------
Earned premiums (b) 18% $2,495.2 $ 2,986.2 20%
Losses and loss adjustment expenses (c) 14% 1,839.9 2,139.5 16%
Other underwriting expenses (d) 6% 791.9 942.1 19%
-------- ----------
Total deductions 11% 2,631.8 3,081.6 17%
-------- -----------
Statutory underwriting loss 69% $ (136.6) $ (95.4) 30%
======== ===========
STATUTORY COMBINED RATIO: (2), (3)
-----------------------------------
Loss and loss adjustment expense ratio (c / b) 73.7% 71.6%
Other underwriting expense ratio (d / a) 29.3% 29.3%
-------- -----------
Combined ratio 103.0% 100.9%
======== ===========
Net investment income (pre-tax) (4%) $ 905.9 $ 870.7 (4%)
Effective tax rate on net investment income 26.8% 26.5%
Catastrophe losses, net of reinsurance (after-tax) NM $ - $ 20.5 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, and for the YTD
2000 second quarter were 73.7 %, 28.7%, and 102.4%, 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) [CITIGROUP LOGO]
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
------- ------ ------ ------- ------- ------
Revenues:
Investment advisory, admin. & distribution fees $ 411 $ 468 $ 471 $ 485 $ 491 $ 479
Unit Investment Trust revenues - net 12 7 16 4 7 5
Other revenues, net of interest expense 13 4 3 (3) 19 8
--------- -------- -------- -------- ------- --------
Total revenues, net of interest expense 436 479 490 486 517 492
--------- -------- -------- -------- ------- --------
Expenses:
Employee compensation and benefits 135 144 150 166 167 168
Mutual fund commission expense 29 34 26 29 35 35
Other expenses 115 150 154 159 157 142
--------- -------- -------- -------- ------- --------
Total expenses 279 328 330 354 359 345
--------- -------- -------- -------- ------- --------
Core income before taxes and minority interest 157 151 160 132 158 147
Income taxes and minority interest, net of tax 63 60 66 55 63 60
--------- -------- -------- -------- ------- --------
Core income $ 94 $ 91 $ 94 $ 77 $ 95 $ 87
========= ======== ======== ======== ======= ========
Pre-tax profit margin 36.0% 31.5% 32.7% 27.2% 30.6% 29.9%
ASSETS UNDER MANAGEMENT BY PRODUCT TYPE (in billions of dollars):
- -----------------------------------------------------------------
Money market and institutional liquidity funds:
Retail $ 86.5 $ 82.6 $ 86.8 $ 90.6 $ 84.7 $ 72.2
Institutional 17.4 18.6 20.4 23.9 31.1 38.2
--------- -------- -------- -------- ------- --------
Total money market and institutional liquidity funds 103.9 101.2 107.2 114.5 115.8 110.4
--------- -------- -------- -------- ------- --------
Long-term mutual funds:
Equity / Balanced 54.7 54.6 55.9 53.8 49.8 54.6
Taxable Fixed Income 16.4 16.5 15.1 14.4 16.6 16.4
Tax Exempt Fixed Income 8.5 8.3 8.5 8.9 9.3 10.3
Annuities 5.8 5.8 6.1 6.0 5.9 6.4
--------- -------- -------- -------- ------- --------
Total long-term mutual funds 85.4 85.2 85.6 83.1 81.6 87.7
--------- -------- -------- -------- ------- --------
Managed accounts:
Private client 54.4 55.5 59.5 61.2 59.4 63.1
Institutional 97.8 96.7 94.0 91.7 86.1 94.0
Emerging Markets Pension Administration 1.1 4.5 4.9 5.4 6.1 6.6
--------- -------- -------- -------- ------- --------
Total managed accounts 153.3 156.7 158.4 158.3 151.6 163.7
--------- -------- -------- -------- ------- --------
Unit Investment Trusts held in client accounts 12.3 11.2 10.9 9.4 7.8 8.1
--------- -------- -------- -------- ------- --------
Alternative Investment Strategies 33.0 34.3 34.4 35.8 36.5 39.1
--------- -------- -------- -------- ------- --------
Total assets under management (1) $ 387.9 $ 388.6 $ 396.5 $ 401.1 $ 393.3 $ 409.0
========= ======== ======== ======== ======= ========
ASSETS UNDER MANAGEMENT BY CLIENT TYPE (in billions of dollars):
- ----------------------------------------------------------------
Retail $ 236.2 $ 231.2 $ 240.6 $ 242.2 $ 231.2 $ 229.3
Emerging Markets Pension Administration 1.1 4.5 4.9 5.4 6.1 6.6
Institutional (including Alternate Investment Strategies) 150.6 152.9 151.0 153.5 156.0 173.1
--------- -------- -------- -------- ------- --------
Total assets under management $ 387.9 $ 388.6 $ 396.5 $ 401.1 $ 393.3 $ 409.0
========= ======== ======== ======== ======= ========
NUMBER OF MORNINGSTAR 4- AND 5-STAR FUNDS
Equity 7 7 10 11 12 11
Fixed Income 13 12 12 11 11 5
GLOBAL RETIREMENT SERVICES (in billions of dollars):
- ----------------------------------------------------
Emerging Markets Pension Administration -
Assets Under Management (2) $ 13.9 $ 13.7 $ 13.8 $ 14.3 $ 15.4 $ 16.0
Number of Participants / Affiliates (in millions) 5.9 6.1 6.2 6.5 6.8 7.0
CitiStreet Joint Venture - Assets Under Administration $ -- $ 189.2 $ 196.4 $ 180.7 $ 183.5 $ 181.6
2Q 2001 VS. YTD YTD YTD 2Q 2001 VS.
2Q 2000 INCREASE/ 2Q 2Q YTD 2Q 2000 INCREASE/
(DECREASE) 2000 2001 (DECREASE)
----------------- --------- -------- ---------------------
Revenues:
Investment advisory, admin. & distribution fees 2% $ 879 $ 970 10%
Unit Investment Trust revenues - net (29%) 19 12 (37%)
Other revenues, net of interest expense 100% 17 27 59%
------ --------
Total revenues, net of interest expense 3% 915 1,009 10%
------ --------
Expenses:
Employee compensation and benefits 17% 279 335 20%
Mutual fund commission expense 3% 63 70 11%
Other expenses (5%) 265 299 13%
------ --------
Total expenses 5% 607 704 16%
------ --------
Core income before taxes and minority interest (3%) 308 305 (1%)
Income taxes and minority interest, net of tax 0% 123 123 0%
------ --------
Core income (4%) $ 185 $ 182 (2%)
====== ========
Pre-tax profit margin
ASSETS UNDER MANAGEMENT BY PRODUCT TYPE (in billions of dollars):
- -----------------------------------------------------------------
Money market and institutional liquidity funds:
Retail (13%) $ 82.6 $ 72.2 (13%)
Institutional 105% 18.6 38.2 105%
------ --------
Total money market and institutional liquidity funds 9% 101.2 110.4 9%
------ --------
Long-term mutual funds:
Equity / Balanced -- 54.6 54.6 --
Taxable Fixed Income (1%) 16.5 16.4 (1%)
Tax Exempt Fixed Income 24% 8.3 10.3 24%
Annuities 10% 5.8 6.4 10%
------ --------
Total long-term mutual funds 3% 85.2 87.7 3%
------ --------
Managed accounts:
Private client 14% 55.5 63.1 14%
Institutional (3%) 96.7 94.0 (3%)
Emerging Markets Pension Administration 47% 4.5 6.6 47%
------ --------
Total managed accounts 4% 156.7 163.7 4%
------ --------
Unit Investment Trusts held in client accounts (28%) 11.2 8.1 (28%)
------ --------
Alternative Investment Strategies 14% 34.3 39.1 14%
------ --------
Total assets under management (1) 5% $388.6 $ 409.0 5%
====== ========
ASSETS UNDER MANAGEMENT BY CLIENT TYPE (in billions of dollars):
- ----------------------------------------------------------------
Retail (1%) $231.2 $ 229.3 (1%)
Emerging Markets Pension Administration 47% 4.5 6.6 47%
Institutional (including Alternate Investment Strategies) 13% 152.9 173.1 13%
-------- ------ -------- -----
Total assets under management 5% $388.6 $ 409.0 5%
======== ====== ======== =====
NUMBER OF MORNINGSTAR 4- AND 5-STAR FUNDS
Equity
Fixed Income
GLOBAL RETIREMENT SERVICES (in billions of dollars):
- ----------------------------------------------------
Emerging Markets Pension Administration -
Assets Under Management (2) 17% $ 13.7 $ 16.0 17%
Number of Participants / Affiliates (in millions) 15% 6.1 7.0 15%
CitiStreet Joint Venture - Assets Under Administration (4%) $189.2 $ 181.6 (4%)
(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 and
second quarters 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.
Reclassified to conform to the current period's presentation.
PAGE 21
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING
THE CITIGROUP PRIVATE BANK
(In millions of dollars) [CITIGROUP LOGO]
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
---- ---- ---- ---- ---- ----
Total Revenues, Net of Interest Expense $ 363 $ 339 $ 337 $ 370 $ 390 $ 375
Adjusted Operating Expenses 214 211 215 234 235 226
Provision for Loan Losses 22 3 (3) 2 2 1
----- ----- ----- ----- ----- -----
Core Income Before Taxes 127 125 125 134 153 148
Income Taxes 47 46 46 49 56 55
----- ----- ----- ----- ----- -----
Core Income $ 80 $ 79 $ 79 $ 85 $ 97 $ 93
===== ===== ===== ===== ===== =====
Average Assets (in billions of dollars) $ 23 $ 25 $ 26 $ 27 $ 25 $ 26
===== ===== ===== ===== ===== =====
Return on Assets 1.40% 1.27% 1.21% 1.25% 1.57% 1.43%
===== ===== ===== ===== ===== =====
Client Business Volumes (in billions of dollars) $ 144 $ 149 $ 154 $ 153 $ 146 $ 150
===== ===== ===== ===== ===== =====
CLIENT BUSINESS VOLUMES (in billions of dollars):
- ------------------------------------------------
Proprietary Managed Assets $ 29 $ 30 $ 31 $ 31 $ 29 $ 29
Other Assets under Fee based Management 4 5 5 5 5 5
Banking and Fiduciary Deposits 28 28 28 31 31 31
Loans 25 27 27 28 26 26
Other, Principally Custody Accounts 58 59 63 58 55 59
----- ----- ----- ----- ----- -----
Total Client Business Volumes $ 144 $ 149 $ 154 $ 153 $ 146 $ 150
===== ===== ===== ===== ===== =====
REVENUES:
- --------
Customer Revenues
Net Interest Spread and Recurring
Fee Based Revenues $ 234 $ 242 $ 242 $ 253 $ 249 $ 247
Transaction Revenues 84 65 64 78 97 79
----- ----- ----- ----- ----- -----
Total Customer Revenues 318 307 306 331 346 326
Other Revenues (Principally Allocated Equity
and Treasury Revenues) 45 32 31 39 44 49
----- ----- ----- ----- ----- -----
Total Revenues $ 363 $ 339 $ 337 $ 370 $ 390 $ 375
===== ===== ===== ===== ===== =====
United States $ 122 $ 121 $ 125 $ 129 $ 131 $ 138
International 241 218 212 241 259 237
----- ----- ----- ----- ----- -----
$ 363 $ 339 $ 337 $ 370 $ 390 $ 375
===== ===== ===== ===== ===== =====
Net Credit Loss Ratio (1) 0.18% 0.05% 0.03% 0.13% (0.01%) 0.04%
2Q 2001 VS. YTD YTD YTD 2Q 2001 VS.
2Q 2000 INCREASE/ 2Q 2Q YTD 2Q 2000 INCREASE/
(DECREASE) 2000 2001 (DECREASE)
----------------- ------- --------- ---------------------
Total Revenues, Net of Interest Expense 11% $ 702 $ 765 9%
Adjusted Operating Expenses 7% 425 461 8%
Provision for Loan Losses (67%) 25 3 (88%)
----- -----
Core Income Before Taxes 18% 252 301 19%
Income Taxes 20% 93 111 19%
----- -----
Core Income 18% $ 159 $ 190 19%
===== =====
Average Assets (in billions of dollars) 4% $ 24 $ 26 8%
===== =====
Return on Assets 13% 1.33% 1.47% 11%
===== =====
Client Business Volumes (in billions of dollars) 1% $ 149 $ 150 1%
===== =====
CLIENT BUSINESS VOLUMES (in billions of dollars):
- -------------------------------------------------
Proprietary Managed Assets (3%) $ 30 $ 29
Other Assets under Fee based Management 0% 5 5
Banking and Fiduciary Deposits 11% 28 31
Loans (4%) 27 26
Other, Principally Custody Accounts 0% 59 59
----- -----
Total Client Business Volumes 1% $ 149 $ 150
===== =====
REVENUES:
- ---------
Customer Revenues
Net Interest Spread and Recurring
Fee Based Revenues 2% $ 476 $ 496 4%
Transaction Revenues 22% 149 176 18%
----- -----
Total Customer Revenues 6% 625 672 8%
Other Revenues (Principally Allocated Equity
and Treasury Revenues) 53% 77 93 21%
----- -----
Total Revenues 11% $ 702 $ 765 9%
===== =====
United States 14% $ 243 $ 269 11%
International 9% 459 496 8%
----- -----
11% $ 702 $ 765 9%
===== =====
Net Credit Loss Ratio (1)
(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
(In millions of dollars) [CITIGROUP LOGO]
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
------- ---------- -------- --------- -------- ---------
REVENUES:
Proprietary Investments (1) $ 1,389 $ 333 $ 93 $ 226 $ (99) $ 295
LDC Debt Sales/Refinancing (112) 69 354 20 20 16
Insurance Portfolio Realized Gains (Losses) (2) (235) 24 49 99 312 50
-------- -------- -------- -------- -------- --------
Total Revenues $ 1,042 $ 426 $ 496 $ 345 $ 233 $ 361
======== ======== ======== ======== ======== ========
CORE INCOME:
Proprietary Investments (1) $ 867 $ 199 $ 37 $ 119 $ (83) $ 184
LDC Debt Sales/Refinancing (70) 42 222 12 12 10
Insurance Portfolio Realized Gains (Losses) (2) (148) 17 31 65 203 33
-------- -------- -------- -------- -------- --------
Total Core Income $ 649 $ 258 $ 290 $ 196 $ 132 $ 227
======== ======== ======== ======== ======== ========
PERIOD END ASSETS:
Proprietary Investments $ 8,316 $ 8,649 $ 8,458 $ 8,617 $ 8,225 $ 7,939
LDC Debt Sales/Refinancing 3,285 3,002 2,651 2,118 2,069 1,980
-------- -------- -------- -------- -------- --------
Total Period End Assets $ 11,601 $ 11,651 $ 11,109 $ 10,735 $ 10,294 $ 9,919
======== ======== ======== ======== ======== ========
2Q 2001 VS. YTD YTD YTD 2Q 2001 VS.
2Q 2000 INCREASE/ 2Q 2Q YTD 2Q 2000 INCREASE/
(DECREASE) 2000 2001 (DECREASE)
------------------- --------- ---------- ---------------------
REVENUES:
Proprietary Investments (1) (11%) $ 1,722 $ 196 (89%)
LDC Debt Sales/Refinancing (77%) (43) 36 NM
Insurance Portfolio Realized Gains (Losses) (2) (108%) (211) 362 NM
-------- --------
Total Revenues (15%) $ 1,468 $ 594 (60%)
======== ========
CORE INCOME:
Proprietary Investments (1) (8%) $ 1,066 $ 101 (91%)
LDC Debt Sales/Refinancing (76%) (28) 22 NM
Insurance Portfolio Realized Gains (Losses) (2) 94% (131) 236 NM
-------- --------
Total Core Income (12%) $ 907 $ 359 (60%)
======== ========
PERIOD END ASSETS:
Proprietary Investments (8%)
LDC Debt Sales/Refinancing (34%)
Total Period End Assets (15%)
(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
(In millions of dollars) [CITIGROUP LOGO]
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
-------- -------- -------- -------- -------- --------
REVENUES
Loan interest, including fees $ 8,449 $ 9,127 $ 9,717 $ 10,084 $ 10,004 $ 9,753
Other interest and dividends 5,994 6,666 7,172 7,730 7,169 7,013
Insurance premiums 2,994 3,015 3,107 3,313 3,361 3,217
Commissions and fees 4,124 4,035 4,077 4,127 4,132 3,752
Principal transactions 1,723 1,435 1,547 1,276 2,325 1,417
Asset management and
administration fees 1,284 1,332 1,331 1,391 1,389 1,331
Realized gains (losses) from
sales of investments (173) 280 508 191 451 60
Other income 2,420 1,169 1,165 1,216 973 1,311
-------- -------- -------- -------- -------- --------
Total revenues 26,815 27,059 28,624 29,328 29,804 27,854
Interest expense 7,685 8,839 9,789 10,325 9,523 8,469
Total revenues, net of
interest expense 19,130 18,220 18,835 19,003 20,281 19,385
BENEFITS, CLAIMS, AND CREDIT LOSSES
Policyholder benefits and claims 2,376 2,451 2,539 2,781 2,727 2,681
Provision for credit losses 1,309 1,302 1,221 1,507 1,474 1,485
-------- -------- -------- -------- -------- --------
Total benefits, claims,
and credit losses 3,685 3,753 3,760 4,288 4,201 4,166
-------- -------- -------- -------- -------- --------
OPERATING EXPENSES
Non-insurance compensation
and benefits 4,587 4,630 4,838 4,578 5,329 4,762
Insurance underwriting,
acquisition and operating 918 883 876 966 999 990
Restructuring and
merger-related items (1) 20 3 70 666 132 213
Other operating 3,842 3,774 3,836 4,072 4,041 3,627
-------- -------- -------- -------- -------- --------
Total operating expenses 9,367 9,290 9,620 10,282 10,501 9,592
-------- -------- -------- -------- -------- --------
INCOME BEFORE INCOME TAXES, MINORITY
INTEREST AND CUMULATIVE EFFECT OF
ACCOUNTING CHANGES 6,078 5,177 5,455 4,433 5,579 5,627
Provision for income taxes 2,167 1,818 1,958 1,582 1,990 1,960
Minority interest, net of income taxes 55 20 13 11 9 15
-------- -------- -------- -------- -------- --------
INCOME BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGES 3,856 3,339 3,484 2,840 3,580 3,652
Cumulative effect of accounting
changes (2) -- -- -- -- (42) (116)
-------- -------- -------- -------- -------- --------
NET INCOME $ 3,856 $ 3,339 $ 3,484 $ 2,840 $ 3,538 $ 3,536
======== ======== ======== ======== ======== ========
2Q 2001 VS.
2Q 2000 YTD YTD YTD 2Q 2001 VS.
INCREASE/ 2Q 2Q YTD 2Q 2000 INCREASE/
(DECREASE) 2000 2001 (DECREASE)
---------- -------- -------- ----------
REVENUES
Loan interest, including fees 7% $ 17,576 $ 19,757 12%
Other interest and dividends 5% 12,660 14,182 12%
Insurance premiums 7% 6,009 6,578 9%
Commissions and fees (7%) 8,159 7,884 (3%)
Principal transactions (1%) 3,158 3,742 18%
Asset management and
administration fees -- 2,616 2,720 4%
Realized gains (losses) from
sales of investments (79%) 107 511 378%
Other income 12% 3,589 2,284 (36%)
-------- --------
Total revenues 3% 53,874 57,658 7%
Interest expense (4%) 16,524 17,992 9%
Total revenues, net of
interest expense 6% 37,350 39,666 6%
BENEFITS, CLAIMS, AND CREDIT LOSSES
Policyholder benefits and claims 9% 4,827 5,408 12%
Provision for credit losses 14% 2,611 2,959 13%
-------- --------
Total benefits, claims,
and credit losses 11% 7,438 8,367 12%
-------- --------
OPERATING EXPENSES
Non-insurance compensation
and benefits 3% 9,217 10,091 9%
Insurance underwriting,
acquisition and operating 12% 1,801 1,989 10%
Restructuring and
merger-related items (1) NM 23 345 NM
Other operating (4%) 7,616 7,668 1%
-------- --------
Total operating expenses 3% 18,657 20,093 8%
-------- --------
INCOME BEFORE INCOME TAXES, MINORITY
INTEREST AND CUMULATIVE EFFECT OF
ACCOUNTING CHANGES 9% 11,255 11,206 --
Provision for income taxes 8% 3,985 3,950 (1%)
Minority interest, net of income taxes (25%) 75 24 (68%)
-------- --------
INCOME BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGES 9% 7,195 7,232 1%
Cumulative effect of accounting
changes (2) -- -- (158) --
-------- --------
NET INCOME 6% $ 7,195 $ 7,074 (2%)
======== ========
(1) Restructuring and merger-related items in the 2000 fourth quarter
primarily related to the acquisition of Associates First Capital
Corporation, in the 2001 first quarter related principally to severance
and costs associated with the reduction of staff in the Global Corporate
businesses, and in the 2001 second quarter related principally to
severance and costs associated with the reduction of staff in most
businesses.
(2) Accounting Changes refers to the first quarter 2001 adoption of Statement
of Financial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities", as amended (SFAS 133) and the second
quarter 2001 adoption of EITF issue 99-20 "Recognition of Interest Income
and Impairment on Purchased and Retained Beneficial Interests in
Securitized Financial Assets" (EITF 99-20).
NM - Not meaningful
PAGE 24
CITIGROUP EARNINGS ANALYSIS - MANAGED BASIS
(In millions of dollars) [CITIGROUP LOGO]
1Q 2Q 3Q 4Q 1Q 2Q /
2000 2000 2000 2000 2001 2001
-------- -------- -------- -------- -------- -------- -
Total Revenues, Net of Interest Expense $ 19,130 $ 18,220 $ 18,835 $ 19,003 $ 20,281 $ 19,385
Effect of Securitization Activities 662 574 573 650 766 930
Housing Finance Unit Charge 47 -- -- -- -- --
-------- -------- -------- -------- -------- --------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 19,839 18,794 19,408 19,653 21,047 20,315
Total Operating Expenses 9,367 9,290 9,620 10,282 10,501 9,592
Restructuring and Merger-Related Items (1) (20) (3) (70) (666) (132) (213)
Housing Finance Unit Charge (25) -- -- -- -- --
-------- -------- -------- -------- -------- --------
ADJUSTED OPERATING EXPENSES 9,322 9,287 9,550 9,616 10,369 9,379
Benefits, Claims and Credit Losses 3,685 3,753 3,760 4,288 4,201 4,166
Effect of Securitization Activities 662 574 573 650 766 930
Housing Finance Unit Charge (40) -- -- -- -- --
-------- -------- -------- -------- -------- --------
ADJUSTED BENEFITS, CLAIMS AND CREDIT LOSSES 4,307 4,327 4,333 4,938 4,967 5,096
CORE INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 6,210 5,180 5,525 5,099 5,711 5,840
Taxes on Core Income 2,216 1,819 1,983 1,757 2,042 2,040
Minority Interest, Net of Income Taxes 55 20 13 11 9 15
-------- -------- -------- -------- -------- --------
CORE INCOME 3,939 3,341 3,529 3,331 3,660 3,785
Restructuring and Merger-Related Items, after-tax (1) (12) (2) (45) (491) (80) (133)
Housing Finance Unit Charge, after-tax (71) -- -- -- -- --
Cumulative Effect of Accounting Changes (2) -- -- -- -- (42) (116)
-------- -------- -------- -------- -------- --------
NET INCOME $ 3,856 $ 3,339 $ 3,484 $ 2,840 $ 3,538 $ 3,536
======== ======== ======== ======== ======== ========
2Q 2001 VS. YTD YTD YTD 2Q 2001 VS.
2Q 2000 INCREASE/ 2Q 2Q YTD 2Q 2000 INCREASE
(DECREASE) 2000 2001 (DECREASE)
----------------- -------- -------- --------------------
Total Revenues, Net of Interest Expense 6% $ 37,350 $ 39,666 6%
Effect of Securitization Activities 62% 1,236 1,696 37%
Housing Finance Unit Charge -- 47 -- --
-------- --------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 8% 38,633 41,362 7%
Total Operating Expenses 3% 18,657 20,093 8%
Restructuring and Merger-Related Items (1) NM (23) (345) NM
Housing Finance Unit Charge -- (25) -- --
-------- --------
ADJUSTED OPERATING EXPENSES 1% 18,609 19,748 6%
Benefits, Claims and Credit Losses 11% 7,438 8,367 12%
Effect of Securitization Activities 62% 1,236 1,696 37%
Housing Finance Unit Charge -- (40) -- --
-------- --------
ADJUSTED BENEFITS, CLAIMS AND CREDIT LOSSES 18% 8,634 10,063 17%
CORE INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 13% 11,390 11,551 1%
Taxes on Core Income 12% 4,035 4,082 1%
Minority Interest, Net of Income Taxes (25%) 75 24 (68%)
-------- --------
CORE INCOME 13% 7,280 7,445 2%
Restructuring and Merger-Related Items, after-tax (1) NM (14) (213) NM
Housing Finance Unit Charge, after-tax -- (71) -- --
Cumulative Effect of Accounting Changes (2) -- -- (158) --
-------- --------
NET INCOME 6% $ 7,195 $ 7,074 (2%)
======== ========
(1) Restructuring and merger-related items in the 2000 fourth quarter
primarily related to the acquisition of Associates First Capital
Corporation, in the 2001 first quarter related principally to severance
and costs associated with the reduction of staff int the Global Corporate
businesses, and in the 2001 second quarter related principally to
severance and costs associated with the reduction of staff in most
businesses.
(2) Accounting Changes refers to the first quarter 2001 adoption of Statement
of Financial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities", as amended (SFAS 133) and the second
quarter 2001 adoption of EITF issue 99-20 "Recognition of Interest Income
and Impairment on Purchased and Retained Beneficial Interests in
Securitized Financial Assets" (EITF 99-20).
NM - Not meaningful
PAGE 25
CONSUMER LOAN DELINQUENCY AMOUNTS, NET CREDIT LOSSES AND RATIOS
(In millions of dollars, except loan amounts in billions) [CITIGROUP LOGO]
90 DAYS OR MORE PAST DUE (1) EOP NET CREDIT LOSSES (1) AVERAGE
-------------------------------- LOANS ------------------------------- LOANS
2Q00 1Q01 2Q01 2Q01 2Q00 1Q01 2Q01 2Q01
------- ------- ------- ------- ------- ------- ------- -------
CITIBANKING NORTH AMERICA $ 33 $ 41 $ 41 $ 7.0 $ 15 $ 15 $ 18 $ 7.0
Ratio 0.47% 0.59% 0.58% 0.88% 0.85% 1.03%
MORTGAGE BANKING 722 957 1,191 45.4 7 6 9 45.7
Ratio 2.10% 2.14% 2.61% 0.08% 0.06% 0.08%
CITI CARDS 1,156 1,836 1,775 103.0 948 1,196 1,383 100.6
Ratio 1.26% 1.84% 1.72% 4.32% 4.84% 5.51%
OTHER CARDS 24 6 5 1.7 12 12 12 1.7
Ratio 1.17% 0.32% 0.29% 2.84% 2.90% 2.92%
CITIFINANCIAL 1,033 1,599 1,757 58.6 314 363 370 58.2
Ratio 1.98% 2.77% 3.00% 2.49% 2.57% 2.55%
WESTERN EUROPE 892 785 740 17.1 77 82 84 17.1
Ratio 5.18% 4.68% 4.34% 1.84% 1.92% 1.98%
CEEMEA 38 33 32 2.4 8 9 10 2.3
Ratio 1.95% 1.40% 1.31% 1.66% 1.66% 1.70%
ASIA (EXCLUDING JAPAN) 396 334 338 21.3 59 61 65 21.2
Ratio 1.75% 1.58% 1.59% 1.07% 1.14% 1.23%
JAPAN 100 107 129 14.1 88 135 131 14.0
Ratio 0.83% 0.81% 0.91% 3.19% 4.06% 3.74%
LATIN AMERICA 323 318 310 6.4 76 71 69 6.6
Ratio 4.52% 4.76% 4.80% 4.25% 4.24% 4.22%
GLOBAL PRIVATE BANK 78 65 64 24.6 3 (1) 3 24.8
Ratio 0.32% 0.27% 0.26% 0.05% -0.01% 0.04%
OTHER 24 24 22 3.5 (1) (18) -- 3.4
------- ------- ------- ------- ------- ------- ------- -------
TOTAL MANAGED $ 4,819 $ 6,105 $ 6,404 $ 305.1 $ 1,606 $ 1,931 $ 2,154 $ 302.6
Ratio 1.74% 2.04% 2.10% 2.42% 2.61% 2.85%
(1) The ratios of 90 days or more past due and net credit losses are
calculated based on end-of-period and average loans, respectively, both
net of unearned income.
Reclassified to conform to the current period's presentation.
PAGE 26
DETAILS OF CREDIT LOSS EXPERIENCE
(In millions of dollars) [CITIGROUP LOGO]
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
------- ------- ------- ------- ------- -------
ALLOWANCE FOR CREDIT LOSSES AT BEGINNING OF PERIOD $ 8,853 $ 8,713 $ 8,852 $ 8,900 $ 8,961 $ 8,957
------- ------- ------- ------- ------- -------
PROVISION FOR CREDIT LOSSES
Consumer 1,092 1,062 1,078 1,113 1,197 1,196
Commercial 217 240 143 394 277 289
------- ------- ------- ------- ------- -------
1,309 1,302 1,221 1,507 1,474 1,485
------- ------- ------- ------- ------- -------
GROSS CREDIT LOSSES
Consumer 1,284 1,290 1,266 1,512 1,364 1,407
Commercial 198 252 169 287 331 369
------- ------- ------- ------- ------- -------
1,482 1,542 1,435 1,799 1,695 1,776
------- ------- ------- ------- ------- -------
CREDIT RECOVERIES
Consumer 209 246 229 245 199 183
Commercial 24 27 35 49 54 82
------- ------- ------- ------- ------- -------
233 273 264 294 253 265
------- ------- ------- ------- ------- -------
NET CREDIT LOSSES 1,249 1,269 1,171 1,505 1,442 1,511
------- ------- ------- ------- ------- -------
Other - net (200) 106 (2) 59 (36) (14)
------- ------- ------- ------- ------- -------
ALLOWANCE FOR CREDIT LOSSES AT END OF PERIOD $ 8,713 $ 8,852 $ 8,900 $ 8,961 $ 8,957 $ 8,917
======= ======= ======= ======= ======= =======
Net consumer credit losses $ 1,075 $ 1,044 $ 1,037 $ 1,267 $ 1,165 $ 1,224
As a percentage of Average consumer loans 2.23% 2.07% 1.89% 2.25% 2.10% 2.19%
Net commercial credit losses $ 174 $ 225 $ 134 $ 238 $ 277 $ 287
As a percentage of Average commercial loans 0.59% 0.72% 0.40% 0.69% 0.81% 0.82%
ALLOWANCE FOR CREDIT LOSSES
- ---------------------------
Consumer $ 5,040 $ 5,062 $ 5,105 $ 4,946 $ 4,956 $ 4,914
Commercial 3,673 3,790 3,795 4,015 4,001 4,003
------- ------- ------- ------- ------- -------
Total Allowance for Credit Losses $ 8,713 $ 8,852 $ 8,900 $ 8,961 $ 8,957 $ 8,917
======= ======= ======= ======= ======= =======
ALLOWANCE AS A PERCENT OF TOTAL LOANS
Consumer 2.56% 2.39% 2.30% 2.16% 2.24% 2.20%
Commercial 2.95% 2.83% 2.72% 2.90% 2.75% 2.79%
Total 2.71% 2.56% 2.46% 2.44% 2.44% 2.43%
PAGE 27
CITIGROUP SUPPLEMENTAL DATA
(In millions of dollars) [CITIGROUP LOGO]
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
------ ------ ------ ------ ------ ------
CASH-BASIS AND RENEGOTIATED LOANS
COMMERCIAL CASH-BASIS LOANS
Collateral Dependent (at lower of cost or collateral value) (1) $ 412 $ 356 $ 348 $ 390 $ 528 $ 527
Other 1,218 1,428 1,515 1,580 1,889 2,102
------ ------ ------ ------ ------ ------
Total Commercial Cash-Basis Loans (2) $1,630 $1,784 $1,863 $1,970 $2,417 $2,629
====== ====== ====== ====== ====== ======
COMMERCIAL CASH-BASIS LOANS
Emerging Markets Corporate Banking and Global Transaction Services $1,066 $1,132 $1,171 $1,148 $1,205 $1,443
Corporate and Investment Bank (2) 494 611 648 776 1,149 1,149
Insurance Subsidiaries 59 38 40 44 55 24
Investment Activities 11 3 4 2 8 13
------ ------ ------ ------ ------ ------
Total Commercial Cash-Basis Loans $1,630 $1,784 $1,863 $1,970 $2,417 $2,629
====== ====== ====== ====== ====== ======
COMMERCIAL RENEGOTIATED LOANS (3) $ 677 $ 720 $ 731 $ 785 $ 909 $ 864
====== ====== ====== ====== ====== ======
CONSUMER LOANS ON WHICH ACCRUAL OF INTEREST (4)
HAS BEEN SUSPENDED (4) $3,736 $3,678 $3,567 $3,808 $3,804 $4,111
====== ====== ====== ====== ====== ======
OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED
ASSETS
Consumer (5) $ 370 $ 380 $ 423 $ 366 $ 268 $ 289
------ ------ ------ ------ ------ ------
Emerging Markets Corporate Banking and Global Transaction Services 43 43 42 74 65 62
Corporate and Investment Bank 141 135 122 115 108 107
Insurance Subsidiaries 310 114 113 102 123 111
------ ------ ------ ------ ------ ------
Total Commercial (5) 494 292 277 291 296 280
------ ------ ------ ------ ------ ------
Corporate/Other 9 8 8 8 8 8
------ ------ ------ ------ ------ ------
TOTAL OTHER REAL ESTATE OWNED $ 873 $ 680 $ 708 $ 665 $ 572 $ 577
====== ====== ====== ====== ====== ======
OTHER REPOSSESSED ASSETS (6) $ 220 $ 253 $ 236 $ 192 $ 360 $ 357
====== ====== ====== ====== ====== ======
(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) Prior period cash basis loans were restated to change the policy of the
Associates Commercial Leasing business for suspending accrual of interest
on past due loans to conform with other leasing businesses in the
Corporate & Investment Bank. The prior policy of placing loans that are 60
days or more past due into cash-basis, was changed to 90 days or more past
due.
(3) Prior period commercial renegotiated loans were restated to remove
Associates cash-basis loans already included above.
(4) Prior period cash-basis consumer loans have been restated to conform
Associates cash-basis loans.
(5) Represents repossessed real estate, carried at lower of cost or fair
value, less costs to sell.
(6) Primarily commercial transportation equipment, carried at lower of cost or
fair value, less costs to sell.
PAGE 28
INSURANCE INVESTMENT PORTFOLIO (1)
(In millions of dollars) [CITIGROUP LOGO]
2Q 2001 VS.
2Q 2000
1Q 2Q 3Q 4Q 1Q 2Q INCREASE/
2000 2000 2000 2000 2001 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 $ 13,541 30%
U.S. Treasury securities and Obligations of U.S.
Government corporations and agencies 3,439 3,063 3,176 3,247 3,099 2,248 (27%)
Corporates (including redeemable preferreds) 28,499 29,124 28,810 28,894 30,872 31,321 8%
Obligations of states and political subdivisions 10,412 10,311 10,435 10,784 11,349 11,330 10%
Debt securities issued by foreign governments 1,623 1,700 1,966 1,607 1,368 1,566 (8%)
Held to maturity, at amortized cost 32 31 30 29 29 28 (10%)
-------- -------- -------- -------- -------- --------
Total fixed income 54,427 54,659 55,177 56,180 59,749 60,034 10%
Equity securities, at market 2,301 2,209 2,075 2,326 2,443 2,321 5%
Short-term and other 6,943 6,848 8,215 8,477 8,029 6,947 1%
-------- -------- -------- -------- -------- --------
Total investments held by Insurance companies $ 63,671 $ 63,716 $ 65,467 $ 66,983 $ 70,221 $ 69,302 9%
======== ======== ======== ======== ======== ========
After tax unrealized gains/(losses) on invested assets $ (290) $ (461) $ (56) $ 531 $ 793 $ 458 NM
======== ======== ======== ======== ======== ========
(1) Includes investments held by insurance companies.
NM - Not meaningful
PAGE 29
GLOBAL CONSUMER
GLOBAL CARDS SUPPLEMENTAL DATA
(In millions of dollars) [CITIGROUP LOGO]
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
--------- --------- --------- --------- --------- ---------
Adjusted Revenues, Net of Interest Expense $ 3,112 $ 3,156 $ 3,322 $ 3,515 $ 3,595 $ 3,690
Adjusted Operating Expenses 1,263 1,288 1,319 1,347 1,337 1,302
Adjusted Provision for Loan Losses (1) 1,098 1,058 1,055 1,162 1,322 1,488
--------- --------- --------- --------- --------- ---------
Core Income Before Taxes 751 810 948 1,006 936 900
Income Taxes 276 298 344 361 343 330
--------- --------- --------- --------- --------- ---------
Core Income $ 475 $ 512 $ 604 $ 645 $ 593 $ 570
========= ========= ========= ========= ========= =========
Managed Average Assets (in billions of dollars) $ 100 $ 104 $ 111 $ 115 $ 117 $ 117
========= ========= ========= ========= ========= =========
Return on Managed Assets 1.91% 1.98% 2.16% 2.23% 2.06% 1.95%
========= ========= ========= ========= ========= =========
KEY INDICATORS
(in billions of dollars)
End of Period Managed Receivables $ 98.4 $ 104.9 $ 110.2 $ 115.8 $ 112.1 $ 116.2
Total EOP Open Accounts (in millions) 90.6 96.3 102.3 104.0 106.3 107.8
Total Sales $ 60.0 $ 67.8 $ 67.8 $ 69.4 $ 62.6 $ 67.2
Coincident Net Credit Loss Ratio % 4.57% 4.22% 3.90% 4.19% 4.73% 5.37%
Loans 90+ Days Past Due % 1.55% 1.33% 1.35% 1.47% 1.82% 1.73%
GEOGRAPHIC DISTRIBUTION
CORE INCOME
- -----------
North America $ 380 $ 388 $ 492 $ 527 $ 467 $ 455
International 95 124 112 118 126 115
--------- --------- --------- --------- --------- ---------
Total $ 475 $ 512 $ 604 $ 645 $ 593 $ 570
========= ========= ========= ========= ========= =========
AVERAGE LOANS
- -------------
North America $ 86.3 $ 90.1 $ 96.5 $ 100.8 $ 101.8 $ 102.3
International 10.1 10.3 10.6 10.5 10.1 10.2
--------- --------- --------- --------- --------- ---------
Total $ 96.4 $ 100.4 $ 107.1 $ 111.3 $ 111.9 $ 112.5
========= ========= ========= ========= ========= =========
TOTAL EOP OPEN ACCOUNTS (in millions)
- -------------------------------------
North America 79.5 84.9 90.5 91.8 94.3 95.1
International 11.1 11.4 11.8 12.2 12.0 12.7
--------- --------- --------- --------- --------- ---------
Total 90.6 96.3 102.3 104.0 106.3 107.8
========= ========= ========= ========= ========= =========
TOTAL SALES
- -----------
North America $ 51.6 $ 58.7 $ 58.5 $ 60.0 $ 54.4 $ 58.7
International 8.4 9.1 9.3 9.4 8.2 8.5
--------- --------- --------- --------- --------- ---------
Total $ 60.0 $ 67.8 $ 67.8 $ 69.4 $ 62.6 $ 67.2
========= ========= ========= ========= ========= =========
NET CREDIT LOSSES (in millions of dollars):
- -------------------------------------------
North America $ 990 $ 961 $ 956 $ 1,080 $ 1,207 $ 1,395
International 105 93 94 93 99 113
--------- --------- --------- --------- --------- ---------
Total $ 1,095 $ 1,054 $ 1,050 $ 1,173 $ 1,306 $ 1,508
========= ========= ========= ========= ========= =========
2Q 2001 VS. YTD 2Q 2001 VS.
2Q 2000 YTD YTD YTD 2Q 2000
INCREASE/ 2Q 2Q INCREASE/
(DECREASE) 2000 2001 (DECREASE)
---------- --------- --------- --------------
Adjusted Revenues, Net of Interest Expense 17% $ 6,268 $ 7,285 16%
Adjusted Operating Expenses 1% 2,551 2,639 3%
Adjusted Provision for Loan Losses (1) 41% 2,156 2,810 30%
--------- ---------
Core Income Before Taxes 11% 1,561 1,836 18%
Income Taxes 11% 574 673 17%
--------- ---------
Core Income 11% $ 987 $ 1,163 18%
========= =========
Managed Average Assets (in billions of dollars) 13% $ 102 $ 117 15%
========= =========
Return on Managed Assets 1.95% 2.00%
========= =========
KEY INDICATORS
(in billions of dollars)
End of Period Managed Receivables 11%
Total EOP Open Accounts (in millions) 12%
Total Sales (1)%
Coincident Net Credit Loss Ratio %
Loans 90+ Days Past Due %
GEOGRAPHIC DISTRIBUTION
CORE INCOME
- -----------
North America 17% $ 768 $ 922 20%
International (7%) 219 241 10%
--------- ---------
Total 11% $ 987 $ 1,163 18%
========= =========
AVERAGE LOANS
- -------------
North America 14% $ 88.2 $ 102.0 16%
International (1)% 10.2 10.2 0%
--------- ---------
Total 12% $ 98.4 $ 112.2 14%
========= =========
TOTAL EOP OPEN ACCOUNTS (in millions)
- -------------------------------------
North America 12%
International 11%
Total 12%
TOTAL SALES
- -----------
North America 0% $ 110.3 $ 113.1 3%
International (7)% 17.5 16.7 (5%)
--------- ---------
Total (1)% $ 127.8 $ 129.8 2%
========= =========
NET CREDIT LOSSES (in millions of dollars):
- ------------------------------------------
North America 45% $ 1,951 $ 2,602 33%
International 22% 198 212 7%
--------- ---------
Total 43% $ 2,149 $ 2,814 31%
========= =========
(1) On a managed basis.
Reclassified to conform to the current period's presentation.
PAGE 30
GLOBAL CONSUMER
GLOBAL CONSUMER FINANCE SUPPLEMENTAL DATA
(In millions of dollars) [CITIGROUP LOGO]
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
-------- -------- -------- -------- -------- --------
Adjusted Revenues, Net of Interest Expense $ 1,842 $ 1,936 $ 1,965 $ 2,136 $ 2,197 $ 2,251
Adjusted Operating Expenses 798 834 830 930 936 837
Adjusted Provision for Loan Losses (1) 559 536 539 607 642 634
-------- -------- -------- -------- -------- --------
Core Income Before Taxes 485 566 596 599 619 780
Income Taxes 180 210 213 207 230 287
-------- -------- -------- -------- -------- --------
Core Income $ 305 $ 356 $ 383 $ 392 $ 389 $ 493
======== ======== ======== ======== ======== ========
Managed Average Assets (in billions of dollars) $ 66 $ 71 $ 75 $ 80 $ 81 $ 84
======== ======== ======== ======== ======== ========
Return on Managed Assets 1.86% 2.02% 2.03% 1.95% 1.95% 2.35%
======== ======== ======== ======== ======== ========
Consumer Finance Receivables (in billions of dollars) $ 61.3 $ 64.9 $ 68.0 $ 70.4 $ 72.7 $ 73.5
Number of Offices 3,830 3,860 3,971 4,034 3,760 3,670
Net Credit Loss Ratio (1) 3.21% 2.83% 2.73% 3.14% 3.07% 3.02%
Loans 90+Days Past Due:
In millions of dollars $ 1,252 $ 1,229 $ 1,292 $ 1,465 $ 1,808 $ 1,966
% 2.08% 1.93% 1.91% 2.13% 2.52% 2.67%
GEOGRAPHIC DISTRIBUTION
CORE INCOME
- -----------
North America $ 179 $ 205 $ 213 $ 213 $ 212 $ 286
International 126 151 170 179 177 207
-------- -------- -------- -------- -------- --------
Total $ 305 $ 356 $ 383 $ 392 $ 389 $ 493
======== ======== ======== ======== ======== ========
CONSUMER FINANCE RECEIVABLES
- ----------------------------
North America $ 49.3 $ 51.6 $ 53.2 $ 55.3 $ 57.7 $ 58.5
International 12.0 13.3 14.8 15.1 15.0 15.0
-------- -------- -------- -------- -------- --------
Total $ 61.3 $ 64.9 $ 68.0 $ 70.4 $ 72.7 $ 73.5
======== ======== ======== ======== ======== ========
NUMBER OF OFFICES
- -----------------
North America 2,767 2,738 2,699 2,720 2,430 2,336
International 1,063 1,122 1,272 1,314 1,330 1,334
-------- -------- -------- -------- -------- --------
Total 3,830 3,860 3,971 4,034 3,760 3,670
======== ======== ======== ======== ======== ========
2Q 2001 VS. YTD 2Q 2001 VS.
2Q 2000 YTD YTD YTD 2Q 2000
INCREASE/ 2Q 2Q INCREASE/
(DECREASE) 2000 2001 (DECREASE)
---------- -------- -------- --------------
Adjusted Revenues, Net of Interest Expense 16% $ 3,778 $ 4,448 18%
Adjusted Operating Expenses -- 1,632 1,773 9%
Adjusted Provision for Loan Losses (1) 18% 1,095 1,276 17%
-------- --------
Core Income Before Taxes 38% 1,051 1,399 33%
Income Taxes 37% 390 517 33%
-------- --------
Core Income 38% $ 661 $ 882 33%
======== ========
Managed Average Assets (in billions of dollars) 18% $ 69 $ 83 20%
======== ========
Return on Managed Assets 1.93% 2.14%
======== ========
Consumer Finance Receivables (in billions of dollars) 13%
Number of Offices (5%)
Net Credit Loss Ratio (1)
Loans 90+Days Past Due:
In millions of dollars 60%
%
GEOGRAPHIC DISTRIBUTION
CORE INCOME
- -----------
North America 40% $ 384 $ 498 30%
International 37% 277 384 39%
-------- --------
Total 38% $ 661 $ 882 33%
======== ========
CONSUMER FINANCE RECEIVABLES
- ----------------------------
North America 13%
International 13%
Total 13%
NUMBER OF OFFICES
- -----------------
North America (15%)
International 19%
Total (5%)
(1) On a managed basis.
PAGE 31
GLOBAL CORPORATE
SUPPLEMENTAL PRODUCT AND REGIONAL RESULTS
(In millions of dollars) [CITIGROUP LOGO]
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
-------- -------- -------- -------- -------- --------
PRODUCT VIEW
- ------------
TOTAL REVENUE
Global Corporate Finance (1) $ 3,838 $ 3,577 $ 3,686 $ 3,555 $ 4,783 $ 3,805
Transaction Services (2) 822 875 907 917 915 900
Private Client 1,916 1,690 1,681 1,628 1,547 1,508
CitiCapital 275 288 301 302 316 321
Commercial Lines 1,719 1,788 1,928 2,062 1,970 2,018
-------- -------- -------- -------- -------- --------
Total Global Corporate $ 8,570 $ 8,218 $ 8,503 $ 8,464 $ 9,531 $ 8,552
======== ======== ======== ======== ======== ========
CORE INCOME
Global Corporate Finance (1) $ 1,104 $ 852 $ 875 $ 828 $ 1,143 $ 1,056
Transaction Services (2) 98 136 144 121 115 128
Private Client 359 253 250 207 191 205
CitiCapital 56 8 9 (146) 19 (3)
Commercial Lines 247 272 317 257 278 286
-------- -------- -------- -------- -------- --------
Total Global Corporate $ 1,864 $ 1,521 $ 1,595 $ 1,267 $ 1,746 $ 1,672
======== ======== ======== ======== ======== ========
REGIONAL VIEW
- -------------
TOTAL REVENUE
JENA (3) $ 7,170 $ 6,827 $ 7,089 $ 7,043 $ 7,916 $ 6,951
Emerging Markets 1,400 1,391 1,414 1,421 1,615 1,601
-------- -------- -------- -------- -------- --------
Total Global Corporate $ 8,570 $ 8,218 $ 8,503 $ 8,464 $ 9,531 $ 8,552
======== ======== ======== ======== ======== ========
CORE INCOME
JENA (3) $ 1,454 $ 1,159 $ 1,181 $ 838 $ 1,261 $ 1,166
Emerging Markets 410 362 414 429 485 506
-------- -------- -------- -------- -------- --------
Total Global Corporate $ 1,864 $ 1,521 $ 1,595 $ 1,267 $ 1,746 $ 1,672
======== ======== ======== ======== ======== ========
TRADING RELATED REVENUE BY PRODUCT
- ----------------------------------
Fixed Income $ 695 $ 533 $ 716 $ 425 $ 1,249 $ 983
Equities 508 436 391 394 472 215
Foreign Exchange 339 352 220 332 394 382
All Other 104 63 82 52 66 39
-------- -------- -------- -------- -------- --------
Total Trading Related Revenue $ 1,646 $ 1,384 $ 1,409 $ 1,203 $ 2,181 $ 1,619
======== ======== ======== ======== ======== ========
TRADING RELATED REVENUE BY INCOME
- ---------------------------------
STATEMENT LINE
--------------
Principal Transactions $ 1,512 $ 1,250 $ 1,394 $ 1,119 $ 2,090 $ 1,265
Net Interest Revenue 134 134 15 84 91 354
-------- -------- -------- -------- -------- --------
Total Trading Related Revenue $ 1,646 $ 1,384 $ 1,409 $ 1,203 $ 2,181 $ 1,619
======== ======== ======== ======== ======== ========
2Q 2001 VS. YTD 2Q 2001 VS.
2Q 2000 YTD YTD YTD 2Q 2000
INCREASE/ 2Q 2Q INCREASE/
(DECREASE) 2000 2001 (DECREASE)
---------- -------- -------- --------------
PRODUCT VIEW
- ------------
TOTAL REVENUE
Global Corporate Finance (1) 6% $ 7,415 $ 8,588 16%
Transaction Services (2) 3% 1,697 1,815 7%
Private Client (11%) 3,606 3,055 (15%)
CitiCapital 11% 563 637 13%
Commercial Lines 13% 3,507 3,988 14%
-------- --------
Total Global Corporate 4% $ 16,788 $ 18,083 8%
======== ========
CORE INCOME
Global Corporate Finance (1) 24% $ 1,956 $ 2,199 12%
Transaction Services (2) (6%) 234 243 4%
Private Client (19%) 612 396 (35%)
CitiCapital NM 64 16 (75%)
Commercial Lines 5% 519 564 9%
-------- --------
Total Global Corporate 10% $ 3,385 $ 3,418 1%
======== ========
REGIONAL VIEW
- -------------
TOTAL REVENUE
JENA (3) 2% $ 13,997 $ 14,867 6%
Emerging Markets 15% 2,791 3,216 15%
-------- --------
Total Global Corporate 4% $ 16,788 $ 18,083 8%
======== ========
CORE INCOME
JENA (3) 1% $ 2,613 $ 2,427 (7%)
Emerging Markets 40% 772 991 28%
-------- --------
Total Global Corporate 10% $ 3,385 $ 3,418 1%
======== ========
TRADING RELATED REVENUE BY PRODUCT
- ----------------------------------
Fixed Income 84% $ 1,228 $ 2,232 82%
Equities (51%) 944 687 (27%)
Foreign Exchange 9% 691 776 12%
All Other (38%) 167 105 (37%)
-------- --------
Total Trading Related Revenue 17% $ 3,030 $ 3,800 25%
======== ========
TRADING RELATED REVENUE BY INCOME
- ---------------------------------
STATEMENT LINE
--------------
Principal Transactions 1% $ 2,762 $ 3,355 21%
Net Interest Revenue 164% 268 445 66%
-------- --------
Total Trading Related Revenue 17% $ 3,030 $ 3,800 25%
======== ========
(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
(IN MILLIONS OF DOLLARS) [CITIGROUP LOGO]
1Q 2Q 3Q 4Q 1Q 2Q
2000 2000 2000 2000 2001 2001
-------- -------- -------- -------- -------- --------
REVENUE
Asia $ 1,171 $ 1,114 $ 1,111 $ 1,118 $ 1,202 $ 1,266
Latin America 1,164 1,149 1,086 1,170 1,213 1,193
CEEMEA 450 482 537 576 665 587
Other 29 32 34 34 24 25
-------- -------- -------- -------- -------- --------
TOTAL $ 2,814 $ 2,777 $ 2,768 $ 2,898 $ 3,104 $ 3,071
======== ======== ======== ======== ======== ========
CORE INCOME
Asia $ 298 $ 277 $ 287 $ 272 $ 337 $ 372
Latin America 269 228 211 239 255 263
CEEMEA 114 108 124 136 180 132
Other 7 (5) 21 41 (18) 10
-------- -------- -------- -------- -------- --------
TOTAL $ 688 $ 608 $ 643 $ 688 $ 754 $ 777
======== ======== ======== ======== ======== ========
CORE INCOME
ASIA:
Consumer (1) $ 139 $ 137 $ 138 $ 132 $ 148 $ 149
Corporate 137 124 138 131 161 210
Asset Management & Private Banking 22 16 11 9 28 13
-------- -------- -------- -------- -------- --------
TOTAL ASIA $ 298 $ 277 $ 287 $ 272 $ 337 $ 372
======== ======== ======== ======== ======== ========
LATIN AMERICA:
Consumer (1) $ 65 $ 41 $ 33 $ 70 $ 33 $ 50
Corporate 174 149 146 138 184 179
Asset Management & Private Banking 30 38 32 31 38 34
-------- -------- -------- -------- -------- --------
TOTAL LATIN AMERICA $ 269 $ 228 $ 211 $ 239 $ 255 $ 263
======== ======== ======== ======== ======== ========
CEEMEA:
Consumer (1) $ 15 $ 14 $ 11 $ 8 $ 18 $ 20
Corporate 92 94 109 119 158 107
Asset Management & Private Banking 7 -- 4 9 4 5
-------- -------- -------- -------- -------- --------
TOTAL CEEMEA $ 114 $ 108 $ 124 $ 136 $ 180 $ 132
======== ======== ======== ======== ======== ========
OTHER $ 7 $ (5) $ 21 $ 41 $ (18) $ 10
======== ======== ======== ======== ======== ========
EMERGING MARKETS:
Consumer (1) $ 219 $ 192 $ 182 $ 210 $ 199 $ 219
Corporate 410 362 414 429 485 506
Asset Management & Private Banking 59 54 47 49 70 52
-------- -------- -------- -------- -------- --------
TOTAL EMERGING MARKETS $ 688 $ 608 $ 643 $ 688 $ 754 $ 777
======== ======== ======== ======== ======== ========
2Q 2001 VS. YTD 2Q 2001 VS.
2Q 2000 YTD YTD YTD 2Q 2000
INCREASE/ 2Q 2Q INCREASE/
(DECREASE) 2000 2001 (DECREASE)
---------- -------- -------- --------------
REVENUE
Asia 14% $ 2,285 $ 2,468 8%
Latin America 4% 2,313 2,406 4%
CEEMEA 22% 932 1,252 34%
Other (22%) 61 49 (20%)
-------- --------
TOTAL 11% $ 5,591 $ 6,175 10%
======== ========
CORE INCOME
Asia 34% $ 575 $ 709 23%
Latin America 15% 497 518 4%
CEEMEA 22% 222 312 41%
Other NM 2 (8) NM
-------- --------
TOTAL 28% $ 1,296 $ 1,531 18%
======== ========
CORE INCOME
ASIA:
Consumer (1) 9% $ 276 $ 297 8%
Corporate 69% 261 371 42%
Asset Management & Private Banking (19%) 38 41 8%
-------- --------
TOTAL ASIA 34% $ 575 $ 709 23%
======== ========
LATIN AMERICA:
Consumer (1) 22% $ 106 $ 83 (22%)
Corporate 20% 323 363 12%
Asset Management & Private Banking (11%) 68 72 6%
-------- --------
TOTAL LATIN AMERICA 15% $ 497 $ 518 4%
======== ========
CEEMEA:
Consumer (1) 43% $ 29 $ 38 31%
Corporate 14% 186 265 42%
Asset Management & Private Banking NM 7 9 29%
-------- --------
TOTAL CEEMEA 22% $ 222 $ 312 41%
======== ========
OTHER NM $ 2 $ (8) NM
======== ========
EMERGING MARKETS:
Consumer (1) 14% $ 411 $ 418 2%
Corporate 40% 772 991 28%
Asset Management & Private Banking (4%) 113 122 8%
-------- --------
TOTAL EMERGING MARKETS 28% $ 1,296 $ 1,531 18%
======== ========
(1) Includes Associates.
NM - Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 33
GLOBAL WEALTH MANAGEMENT
SUPPLEMENTAL DATA
(In millions of dollars) [CITIGROUP LOGO]
1Q 2Q 3Q 4Q 1Q
2000 2000 2000 2000 2001
--------- --------- --------- --------- ---------
REVENUES
Private Client $ 1,916 $ 1,690 $ 1,681 $ 1,628 $ 1,547
Citigroup Asset Management 436 479 490 486 517
The Citigroup Private Bank 363 339 337 370 390
Global Consumer Investment, Life Insurance & Annuity Products 1,671 1,620 1,531 1,616 1,756
--------- --------- --------- --------- ---------
TOTAL GLOBAL WEALTH MANAGEMENT $ 4,386 $ 4,128 $ 4,039 $ 4,100 $ 4,210
========= ========= ========= ========= =========
CORE INCOME
Private Client $ 359 $ 253 $ 250 $ 207 $ 191
Citigroup Asset Management 94 91 94 77 95
The Citigroup Private Bank 80 79 79 85 97
Global Consumer Investment, Life Insurance & Annuity Products 348 346 330 344 348
--------- --------- --------- --------- ---------
TOTAL GLOBAL WEALTH MANAGEMENT $ 881 $ 769 $ 753 $ 713 $ 731
========= ========= ========= ========= =========
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS)
Private Client - Client Assets $ 1,032 $ 1,032 $ 1,047 $ 977 $ 911
Citigroup Asset Management -Assets Under Management 388 389 397 401 393
PBG - Client Business Volumes 144 149 154 153 146
Global Consumer Investment, Life Insurance & Annuity Products 593 599 608 609 610
Less Cross-Sell Volumes Included Above (294) (300) (309) (308) (296)
--------- --------- --------- --------- ---------
TOTAL CLIENT BUSINESS VOLUMES $ 1,863 $ 1,869 $ 1,897 $ 1,832 $ 1,764
========= ========= ========= ========= =========
2Q 2001 VS. YTD 2Q 2001 VS.
2Q 2000 YTD YTD YTD 2Q 2000
2Q INCREASE/ 2Q 2Q INCREASE/
2001 (DECREASE) 2000 2001 (DECREASE)
--------- ---------- --------- --------- --------------
REVENUES
Private Client $ 1,508 (11%) $ 3,606 $ 3,055 (15%)
Citigroup Asset Management 492 3% 915 1,009 10%
The Citigroup Private Bank 375 11% 702 765 9%
Global Consumer Investment, Life Insurance & Annuity Products 1,590 (2%) 3,291 3,346 2%
--------- --------- ---------
TOTAL GLOBAL WEALTH MANAGEMENT $ 3,965 (4%) $ 8,514 $ 8,175 (4%)
========= ========= =========
CORE INCOME
Private Client $ 205 (19%) $ 612 $ 396 (35%)
Citigroup Asset Management 87 (4%) 185 182 (2%)
The Citigroup Private Bank 93 18% 159 190 19%
Global Consumer Investment, Life Insurance & Annuity Products 362 5% 694 710 2%
--------- --------- ---------
TOTAL GLOBAL WEALTH MANAGEMENT $ 747 (3%) $ 1,650 $ 1,478 (10%)
========= ========= =========
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS)
Private Client - Client Assets $ 981 (5%) $ 1,032 $ 981 (5%)
Citigroup Asset Management -Assets Under Management 409 5% 389 409 5%
PBG - Client Business Volumes 150 1% 149 150 1%
Global Consumer Investment, Life Insurance & Annuity Products 626 4% 599 626 5%
Less Cross-Sell Volumes Included Above (319) 6% (300) (319) 6%
--------- --------- ---------
TOTAL CLIENT BUSINESS VOLUMES $ 1,847 (1%) $ 1,869 $ 1,847 (1%)
========= ========= =========
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) [CITIGROUP LOGO]
YTD YTD
1Q 2Q 3Q 4Q 1Q 2Q 2Q 2Q
2000 2000 2000 2000 2001 2001 2000 2001
------- ------- ------- ------- ------- ------- -------- --------
NET INTEREST REVENUE STATISTICS
(TAXABLE EQUIVALENT BASIS)
Net Interest Revenue $ 5,295 $ 5,414 $ 5,577 $ 5,941 $ 6,240 $ 6,545 $ 10,709 $ 12,785
Effect of Securitization Activities 1,442 1,304 1,299 1,329 1,524 1,509 2,746 3,033
------- ------- ------- ------- ------- ------- -------- --------
Total Adjusted $ 6,737 $ 6,718 $ 6,876 $ 7,270 $ 7,764 $ 8,054 $ 13,455 $ 15,818
======= ======= ======= ======= ======= ======= ======== ========
Average Interest Earning Assets
(in billions of dollars) $ 399.5 $ 425.5 $ 449.7 $ 462.3 $ 478.7 $ 477.6 $ 412.5 $ 478.2
Effect of Securitization Activities 58.0 55.8 55.4 61.0 62.2 62.3 56.9 62.2
------- ------- ------- ------- ------- ------- -------- --------
Total Adjusted $ 457.5 $ 481.3 $ 505.1 $ 523.3 $ 540.9 $ 539.9 $ 469.4 $ 540.4
======= ======= ======= ======= ======= ======= ======== ========
Net Interest Margin (%) 5.33% 5.12% 4.93% 5.11% 5.29% 5.50% 5.22% 5.39%
Effect of Securitization Activities 0.59% 0.49% 0.49% 0.42% 0.53% 0.48% 0.54% 0.51%
------- ------- ------- ------- ------- ------- -------- --------
Total Adjusted 5.92% 5.61% 5.42% 5.53% 5.82% 5.98% 5.76% 5.90%
======= ======= ======= ======= ======= ======= ======== ========
(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: July 17, 2001 CITIGROUP INC.
By: /s/ Roger W. Trupin
-----------------------------
Name: Roger W. Trupin
Title: Controller