<Page>
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 17, 2002
--------------------
Citigroup Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-9924 52-1568099
- --------------- ----------- -------------------
(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)
<Page>
Citigroup Inc.
Current Report on Form 8-K
ITEM 5. OTHER EVENTS.
On July 17, 2002, Citigroup Inc. reported GAAP net income for the second quarter
of $4.08 billion, increasing 15% over the prior year period and including a $25
million release of a restructuring reserve. Net income per share, diluted, was
$0.78, a 13% increase. Citigroup's core income for the second quarter was a
record $4.06 billion, a 7% increase over the second quarter of 2001, including
charges related to the writedown of WorldCom bonds held in the insurance
investment portfolio of $167 million after tax, or $0.03 per share, in addition
to credit and trading-related losses in the Global Corporate and Investment
Bank. Core income per share, diluted, was $0.78, a 5% increase over the prior
year period. Revenues for the company increased 10% in the second quarter.
During the quarter, Citigroup repurchased 38.3 million shares of common stock
for a total of $1.6 billion. Furthermore, Citigroup announced that its Board of
Directors has approved the repurchase of an additional $5 billion of Citigroup
common stock, bringing the total amount of Citigroup's funds available for share
repurchase to $7.5 billion.
"Our businesses delivered outstanding performance this quarter, generating 15%
net income growth and a record level of core income, despite the challenges of a
difficult global economic environment," said Sanford I. Weill, Chairman and
Chief Executive Officer of Citigroup. "Our new management structure, designed to
leverage the performance of our leading product franchises globally while
building upon a strong local presence in every region of the world, will enable
us to continue to grow our market share and profitability as we pursue our goal
of being truly 'best in class' in each of our product areas across the more than
100 countries we serve.
"Our performance this quarter once again underscores the leadership positions of
our businesses. Citigroup's Global Consumer businesses generated 25% income
growth this quarter, with strong customer volume growth in cards, retail banking
and consumer finance. We are encouraged by trends in our delinquencies,
indicating that consumer credit quality is poised for improvement. Our Global
Corporate and Investment Bank was once again the top issuer of global debt and
equity securities, number one in investment grade debt underwriting, number one
in disclosed fees, and number one in equity underwriting. Our Investment
Management businesses generated 23% income growth despite continued steep
declines in the major equity market indexes. And the value of Citigroup's
unparalleled international franchise was recognized by EUROMONEY magazine, which
named Citigroup as the "Best Bank in the World", in addition to awarding our
company the top ranking in six global product areas and 14 specific countries.
"The investment community is rightly focused on issues of corporate
responsibility, governance, and disclosure, and we continue to seek ways to lead
by example with the practices at Citigroup. We were pleased that the Financial
Securities Analysts Association rated us number one in financial disclosure in
our industry for the second year in a row. We continue to maintain some of the
toughest restrictions in the business community on any sales of our stock by
senior management - no more than 25% can be sold above a substantial minimum
holding. All options programs are approved by shareholder vote, and options are
distributed to more than two-thirds of employees to ensure that we have the
shareholders' best interests tightly aligned with those of management and
employees.
"We are committed to continuing to work with regulators and legislators on
solutions to the alarming problems that have surfaced in the wake of recent
corporate scandals. We applaud President Bush's efforts to see that corporate
officers lose any compensation they may receive by manipulating financial
statements. We also salute and encourage the efforts of Senator Sarbanes,
Congressman Oxley and the Congressional Leadership towards comprehensive
accounting reform legislation. To address the recent disturbing revelations in
equity research, we have recommended that the investment banking industry
2
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eliminate any conflicts, perceived or real, by unambiguously separating the
activity of investment banking from that of equity research," said Weill.
Highlights of the quarter included:
- - Revenues rose 10% year over year, outpacing expense growth of 6%. The
company continued to realize integration savings in the Consumer Finance
business in North America, where expenses declined 9%, or $48 million from
the second quarter of 2001. Transaction Services continued to reduce
operations and technology costs, driving a 10% (or $72 million) year over
year reduction in its expense base. The discontinuance of the amortization
of goodwill and certain intangibles, in accordance with SFAS 142,
contributed to an $118 million after tax reduction in expenses versus the
second quarter of 2001.
- - Credit costs increased in several of Citigroup's consumer businesses, as
the total managed global consumer net credit loss rate rose 2 basis points
from the first quarter to 3.34%. Leading credit indicators have improved,
however, with the 90-day delinquency rate declining from 2.56% in the first
quarter to 2.41%, reflecting substantial improvement in North America,
offset by modest deterioration internationally. The Global Corporate and
Investment Bank's provision for loan losses of $460 million improved by
$220 million from the first quarter of 2002, which included $340 million of
Argentina-related charges. However, losses are higher than the year ago
period, reflecting increased losses in the company's telecom portfolio.
Cash basis loans increased $578 million, including $347 million in
Argentina for which the company has already reserved, as well as higher
cash basis loans in the telecom portfolio, indicating a continued
challenging corporate credit environment.
- - Citigroup's total equity, including trust preferred securities, reached
$92.5 billion at June 30, 2002, and the company's return on common equity
was 19.4% for the second quarter. Citigroup repurchased 38.3 million common
shares, up from 17.9 million shares in the first quarter, for a total cost
of $1.6 billion. The Board of Directors has authorized a further $5 billion
in share repurchases in addition to the $2.5 billion currently remaining
under existing authorization.
GLOBAL CONSUMER
Core income of $2.01 billion for the second quarter, up 25%. Highlights
included:
- - CARDS, which now serves 108 million accounts in 47 countries, increased
income by 34% to $744 million on the strength of a 38% increase in North
America, which included the card operations of Banamex. CitiCards, the
company's primary brand in North America, experienced receivables growth of
4% to $108 billion. For CitiCards and Diners Club, revenue growth of 16%
was driven by margin expansion from lower funding costs and risk-based
pricing. Revenue momentum more than offset a modest 1% increase in expenses
due to higher marketing costs, as well as higher credit losses in the
quarter. In the international markets, income growth of 14% was largely
driven by continued expansion in Japan and CEEMEA.
- - CONSUMER FINANCE income increased 15%, driven by a decline in expenses in
North America, largely related to the Associates integration. North America
consumer finance revenues increased 11%, benefiting from spread
improvements due to lower interest rates as well as funding actions, which
offset a 61 basis point increase in loss rates. Core income for
international consumer finance rose 7%, with receivables growth of 19%, led
by continued business expansion in Europe as well as Japan, where the
Marufuku acquisition added approximately $500 million in receivables.
- - RETAIL BANKING income increased 26%, reflecting strong customer volumes and
the continued integration of EAB in Citibanking North America, as well as
the addition of the retail banking operations of Banamex in Mexico. In
North America, Citibanking income increased 32% on strong deposit growth of
23%, while Consumer Assets continued to benefit from record levels of
mortgage refinancings, with revenues increasing 17%. Western Europe income
advanced 54% led by higher business volumes in Germany. In Latin America,
results were negatively impacted by increased losses in Argentina.
GLOBAL CORPORATE AND INVESTMENT BANK
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Core income of $1.45 billion for the second quarter, up 4%. Highlights included:
- - CAPITAL MARKETS AND BANKING income increased 4%, as revenue growth offset
higher credit costs. Despite difficult market conditions, including an
industry-wide 44% decline in completed global M&A activity, and a 20%
decline in equity issuance, revenues rose 9%, principally reflecting
strength in Global Fixed Income. The provision for loan losses was $172
million higher than the second quarter of 2001, reflecting continued
weakness in the corporate sector, primarily in telecom.
- - TRANSACTION SERVICES, which includes Global Securities Services and
e-Business, recorded a 76% increase in income, driven by continued
aggressive expense management, as expenses declined 10%. Revenues for
e-Business benefited from higher account balances and increased spread
income in Latin America, while Global Securities Services revenues remained
flat, reflecting weak global equity markets, and included a $28 million
gain on the sale of an investment.
- - PRIVATE CLIENT income increased for the third consecutive quarter, although
declining 1% from the prior year period. Revenue per Financial Consultant
remained at $473,000, and the pre-tax margin exceeded 20%. Net flows were
$9.4 billion in the second quarter, and total client assets were $939.1
billion at quarter end. Assets in SSB's Bank Deposit Program totaled $37.2
billion.
GLOBAL INVESTMENT MANAGEMENT
Core income of $505 million for the second quarter, up 23%. Highlights included:
- - PRIVATE BANKING income increased 23% to a record $113 million. Revenues
rose 14%, with particular strength in client trading activity, structured
products, lending and investment products. Client business volumes
increased 8% to $163 billion. Regionally, income growth was exceptionally
strong in the U.S., Japan, and Asia.
- - Income for ASSET MANAGEMENT, which includes Retirement Services, increased
63%, reflecting growth in the retail and institutional businesses as well
as the addition of the asset management and retirement services businesses
of Banamex. Assets under management reached $443 billion, a 6% increase
from the second quarter of 2001, but declining from the prior quarter,
despite positive net flows of $8.5 billion in the quarter. Sales of
Citigroup Asset Management's products remained strong throughout
proprietary channels, with market share of 51% in the Salomon Smith Barney
retail channel, 74% at Primerica Financial Services and 54% in the
Citibanking North America channel.
- - LIFE INSURANCE AND ANNUITIES income increased 8%. Income for Travelers Life
and Annuity fell 10% as lower net investment income was partly offset by
continued expense reductions. Business volumes remained strong with a 5%
increase in account balances, despite a drop in variable annuity market
balances, for individual and group annuities and 33% growth in net written
life insurance premiums. International Insurance contributed $49 million,
primarily reflecting the addition of Banamex and other operations in Latin
America.
CITIGROUP INTERNATIONAL
Citigroup's international operations, which include Western Europe, CEEMEA,
Japan, Asia and Latin America and which are fully reflected in the product
disclosures above, contributed $1.25 billion, or 31% of the company's total core
income in the second quarter, up 2% over the prior year period. Results
reflected continued growth in the company's consumer and investment management
businesses, offset by slower growth in the corporate and investment bank.
- - During the quarter, Citigroup continued to expand its presence
internationally. Citigroup's international insurance operation,
CitiInsurance, launched three new insurance companies in the second
quarter, in Hong Kong, Brazil and Poland, which will manufacture a range of
insurance products initially for distribution to cards, consumer finance
and retail banking customers. Citigroup also launched Citigroup Online in
Egypt, bringing to 30 the total number of international markets with access
to consumer internet banking.
- - Western Europe contributed $259 million in income, increasing 15%,
reflecting strong performance from the company's consumer franchise in
Germany.
- - CEEMEA's 28% income growth to $172 million reflects strong growth in sales
and trading revenues in the region and the expansion of cards and retail
banking.
- - Japan's income of $267 million increased 6%, on the strength of advances in
cards, retail banking and Private Banking.
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- - Asia's income declined 6% to $359 million primarily due to the inclusion of
a gain on an asset sale in the prior year period.
- - Latin America's income of $192 million, which declined 16%, continues to be
depressed by the ongoing economic crisis in Argentina as well as by a
slowdown in Brazil precipitated by the upcoming elections in that country.
PROPRIETARY INVESTMENT ACTIVITIES AND CORPORATE/OTHER
Citigroup's Proprietary Investment Activities recorded a loss of $190 million in
the second quarter, which included a $132 million after tax loss in the life and
annuities investment portfolios due to the impairment of WorldCom securities, as
well as lower market values in the company's publicly-traded proprietary
investment portfolio, as major market indexes declined sharply. Corporate/Other
income was $34 million, reflecting interest rate positioning gains and lower
funding costs partially resulting from the successful IPO of 23.1% of the
Travelers Property and Casualty subsidiary at the end of the first quarter.
PROPERTY AND CASUALTY
Core income of $256 million for the second quarter decreased 25%, reflecting the
recognition of minority interest from Citigroup's sale of 23.1% of Travelers
Property and Casualty to the public in the first quarter of 2002. Highlights
included:
- - Personal Lines core income increased 15%, due to higher earned premiums and
lower weather-related costs, partly offset by lower net investment
income, and minority interest.
- - Commercial Lines income declined 21%, largely due to $72 million in
minority interest. Net written premiums increased 23%.
- - Realized investment losses were $18 million in the second quarter,
reflecting a $34 million impairment taken on WorldCom securities held in
the Travelers Property Casualty investment portfolio partially offset by
realized gains.
# # #
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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; continued improving trends in consumer delinquency
rates and credit quality; and the Company's ability to leverage the performance
of its leading product franchises globally and build upon a strong local
presence in every region of the world to grow market share and profitability.
# # #
A financial summary follows. Additional financial, statistical and
business-related information, as well as business and segment trends, is
included in the Financial Supplement.
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[CITIGROUP LOGO]
<Table>
<Caption>
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CITIGROUP SEGMENT INCOME - PRODUCT VIEW SECOND QUARTER SIX MONTHS
-------------------------- % --------------------- %
(In Millions of Dollars, except per share data) 2002 2001 Change 2002 2001 Change
- ---------------------------------------------------------------------------------------------------------------------------------
GLOBAL CONSUMER
Cards.................................................... $ 744 $ 555 34 $ 1,341 $ 1,141 18
Consumer Finance......................................... 565 491 15 1,101 888 24
Retail Banking........................................... 748 594 26 1,474 1,157 27
Other.................................................... (48) (29) (66) (95) (70) (36)
-------------------------- ---------------------
TOTAL GLOBAL CONSUMER 2,009 1,611 25 3,821 3,116 23
-------------------------- ---------------------
GLOBAL CORPORATE AND INVESTMENT BANK
Capital Markets and Banking.............................. 1,070 1,033 4 2,099 2,234 (6)
Private Client........................................... 204 206 (1) 401 402 (0)
Transaction Services..................................... 204 116 76 286 207 38
Other.................................................... (33) 35 NM (55) 23 NM
-------------------------- ---------------------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK.................. 1,445 1,390 4 2,731 2,866 (5)
-------------------------- ---------------------
GLOBAL INVESTMENT MANAGEMENT
Life Insurance and Annuities............................. 255 236 8 459 451 2
Private Banking.......................................... 113 92 23 225 187 20
Asset Management......................................... 137 84 63 263 175 50
-------------------------- ---------------------
TOTAL GLOBAL INVESTMENT MANAGEMENT.......................... 505 412 23 947 813 16
-------------------------- ---------------------
PROPRIETARY INVESTMENT ACTIVITIES........................... (190) 208 NM (139) 214 NM
CORPORATE / OTHER........................................... 34 (179) NM (44) (375) 88
PROPERTY AND CASUALTY
Personal Lines........................................... 54 47 15 125 142 (12)
Commercial Lines......................................... 239 302 (21) 517 598 (14)
Realized Insurance Investment Portfolio Gains (Losses)... (18) 32 NM 1 157 (99)
Interest and Other....................................... (19) (38) 50 (41) (86) 52
-------------------------- ---------------------
TOTAL PROPERTY AND CASUALTY................................. 256 343 (25) 602 811 (26)
-------------------------- ---------------------
CORE INCOME................................................. 4,059 3,785 7 7,918 7,445 6
-------------------------- ---------------------
Restructuring-Related Items -- After-Tax (A)................ 25 (133) NM (5) (213) 98
Gain on Sale of Stock by Subsidiary -- After-Tax (B)........ - - - 1,061 - -
Cumulative Effect of Accounting Changes (C)................. - (116) 100 (47) (158) 70
-------------------------- ---------------------
NET INCOME.................................................. $ 4,084 $ 3,536 15 $ 8,927 $ 7,074 26
- ---------------------------------------------------------------------------------------------------------------------------------
DILUTED EARNINGS PER SHARE:
NET INCOME.................................................. $ 0.78 $ 0.69 13 $ 1.71 $ 1.37 25
CORE INCOME................................................. $ 0.78 $ 0.74 5 $ 1.52 $ 1.45 5
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
(A) Restructuring-related items in the 2001 first quarter related principally
to severance and costs associated with the reduction of staff in the Global
Corporate and Investment Bank businesses, in the 2001 second quarter
related principally to severance and costs associated with the reduction of
staff primarily in the Global Corporate and Investment Bank and Global
Consumer businesses, in the 2002 first quarter primarily related to
severance and costs associated with the reduction of staff in Argentina
within the Latin America consumer and corporate businesses, and in the 2002
second quarter primarily related to reductions in the reserve due to
changes in estimates.
(B) Travelers Property Casualty Corp. (TPC) (a wholly-owned subsidiary of
Citigroup on December 31, 2001) sold 231,000,000 shares of class A common
stock at $18.50 per share in an initial public offering on March 27, 2002.
The offering resulted in an after-tax gain of $1.061 billion to Citigroup.
Citigroup plans to make a tax-free distribution to its stockholders of a
portion of its ownership interest in TPC by year-end 2002, such that
following the distribution, Citigroup would remain a holder of
approximately 9.9% of TPC's common equity. The distribution is subject to
various regulatory approvals as well as a private letter ruling from the
Internal Revenue Service and various other conditions. Citigroup has no
obligation to consummate the distribution by the end of 2002 or at all,
whether or not these conditions are satisfied. Income statement minority
interest was recognized on the initial public offering portion beginning on
April 1, 2002.
(C) 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 first
quarter 2002 adoption of the remaining provisions of SFAS No. 142,
"Goodwill and Other Intangible Assets" (SFAS 142).
NM Not meaningful
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[CITIGROUP LOGO]
<Table>
<Caption>
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CITIGROUP CORE INCOME - REGIONAL VIEW SECOND QUARTER SIX MONTHS
------------------------ % --------------------- %
(In Millions of Dollars) 2002 2001 Change 2002 2001 Change
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NORTH AMERICA (EXCLUDING MEXICO) (1)
Consumer.................................................. $ 1,287 $ 1,065 21 $ 2,502 $ 2,070 21
Corporate................................................. 775 752 3 1,682 1,483 13
Investment Management..................................... 352 355 (1) 709 682 4
------------------------ ---------------------
TOTAL NORTH AMERICA (EXCLUDING MEXICO)....................... 2,414 2,172 11 4,893 4,235 16
------------------------ ---------------------
MEXICO
Consumer.................................................. 181 (13) NM 326 (27) NM
Corporate................................................. 45 22 NM 143 41 NM
Investment Management..................................... 70 10 NM 118 17 NM
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TOTAL MEXICO................................................. 296 19 NM 587 31 NM
------------------------ ---------------------
WESTERN EUROPE
Consumer.................................................. 141 98 44 275 202 36
Corporate................................................. 115 126 (9) 159 312 (49)
Investment Management..................................... 3 1 NM (4) 2 NM
------------------------ ---------------------
TOTAL WESTERN EUROPE......................................... 259 225 15 430 516 (17)
------------------------ ---------------------
JAPAN
Consumer.................................................. 254 242 5 494 447 11
Corporate................................................. (3) 4 NM 20 102 (80)
Investment Management..................................... 16 6 NM 32 14 NM
------------------------ ---------------------
TOTAL JAPAN.................................................. 267 252 6 546 563 (3)
------------------------ ---------------------
ASIA (EXCLUDING JAPAN)
Consumer.................................................. 146 144 1 291 286 2
Corporate................................................. 185 225 (18) 360 353 2
Investment Management..................................... 28 14 100 55 41 34
------------------------ ---------------------
TOTAL ASIA (EXCLUDING JAPAN)................................. 359 383 (6) 706 680 4
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LATIN AMERICA
Consumer.................................................. (26) 55 NM (118) 104 NM
Corporate................................................. 187 155 21 95 317 (70)
Investment Management..................................... 31 18 72 28 41 (32)
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TOTAL LATIN AMERICA.......................................... 192 228 (16) 5 462 (99)
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CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA
Consumer.................................................. 26 20 30 51 34 50
Corporate................................................. 141 106 33 272 258 5
Investment Management..................................... 5 8 (38) 9 16 (44)
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TOTAL CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA......... 172 134 28 332 308 8
------------------------ ---------------------
PROPRIETARY INVESTMENT ACTIVITIES............................ (190) 208 NM (139) 214 NM
CORPORATE / OTHER............................................ 34 (179) NM (44) (375) 88
PROPERTY AND CASUALTY
Personal Lines............................................ 54 47 15 125 142 (12)
Commercial Lines.......................................... 239 302 (21) 517 598 (14)
Realized Insurance Investment Portfolio Gains (Losses).... (18) 32 NM 1 157 (99)
Interest and Other........................................ (19) (38) 50 (41) (86) 52
------------------------ ---------------------
TOTAL PROPERTY AND CASUALTY.................................. 256 343 (25) 602 811 (26)
------------------------ ---------------------
CORE INCOME.................................................. $ 4,059 $ 3,785 7 $ 7,918 $ 7,445 6
=================================================================================================================================
</Table>
(1) Excludes Property and Casualty, Proprietary Investment Activities and
Corporate / Other.
NM Not meaningful
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[CITIGROUP LOGO]
<Table>
<Caption>
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CITIGROUP SEGMENT REVENUE - PRODUCT VIEW SECOND QUARTER SIX MONTHS
------------------------ % --------------------- %
(In Millions of Dollars) 2002 2001 Change 2002 2001 Change
- ---------------------------------------------------------------------------------------------------------------------------------
GLOBAL CONSUMER
Cards..................................................... $ 4,340 $ 3,675 18 $ 8,490 $ 7,281 17
Consumer Finance.......................................... 2,406 2,178 10 4,704 4,331 9
Retail Banking............................................ 3,207 2,568 25 6,542 5,058 29
Other..................................................... 70 120 (42) 105 162 (35)
------------------------ ---------------------
TOTAL GLOBAL CONSUMER........................................ 10,023 8,541 17 19,841 16,832 18
------------------------ ---------------------
GLOBAL CORPORATE AND INVESTMENT BANK
Capital Markets and Banking............................... 4,509 4,153 9 9,140 9,325 (2)
Private Client............................................ 1,523 1,508 1 3,000 3,057 (2)
Transaction Services...................................... 939 891 5 1,774 1,793 (1)
Other..................................................... (104) (18) NM (203) (83) NM
------------------------ ---------------------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK................... 6,867 6,534 5 13,711 14,092 (3)
------------------------ ---------------------
GLOBAL INVESTMENT MANAGEMENT
Life Insurance and Annuities.............................. 1,216 1,014 20 2,218 2,184 2
Private Banking........................................... 427 376 14 850 768 11
Asset Management.......................................... 522 491 6 1,041 1,007 3
------------------------ ---------------------
TOTAL GLOBAL INVESTMENT MANAGEMENT........................... 2,165 1,881 15 4,109 3,959 4
------------------------ ---------------------
PROPRIETARY INVESTMENT ACTIVITIES............................ (254) 311 NM (137) 352 NM
CORPORATE / OTHER............................................ 273 (105) NM 369 (237) NM
PROPERTY AND CASUALTY
Personal Lines............................................ 1,183 1,117 6 2,338 2,209 6
Commercial Lines.......................................... 2,173 2,040 7 4,220 4,034 5
Realized Insurance Investment Portfolio Gains (Losses).... (36) 50 NM (7) 242 NM
Interest and Other........................................ (40) (54) 26 (74) (121) 39
------------------------ ---------------------
TOTAL PROPERTY AND CASUALTY.................................. 3,280 3,153 4 6,477 6,364 2
------------------------ ---------------------
TOTAL ADJUSTED REVENUE....................................... $ 22,354 $ 20,315 10 $ 44,370 $ 41,362 7
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
NM Not meaningful
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[CITIGROUP LOGO]
CITIGROUP - QUARTERLY FINANCIAL DATA SUPPLEMENT
<Table>
<Caption>
PAGE NUMBER
-----------
CITIGROUP CONSOLIDATED
FINANCIAL SUMMARY 1
SEGMENT CORE INCOME:
Product View 2
Regional View 3
SEGMENT REVENUES:
Product View 4
Regional View 5
SEGMENT DETAIL
GLOBAL CONSUMER:
CARDS
Income Summary and Key Indicators 6
Geographic Distribution 7
CitiCards and Diners Club N.A. 8
CONSUMER FINANCE
Income Summary and Key Indicators 9
Geographic Distribution 10
Citifinancial 11
RETAIL BANKING
Income Summary and Key Indicators 12
Geographic Distribution 13
GLOBAL CORPORATE AND INVESTMENT BANK:
Income Statement 14
Revenue Details 15
Capital Markets and Banking 16
Private Client 17
Transaction Services 18
GLOBAL INVESTMENT MANAGEMENT:
Life Insurance and Annuities 19
Private Banking 20
Asset Management 21
PROPERTY AND CASUALTY:
Personal Lines 22
Commercial Lines 23
PROPRIETARY INVESTMENT ACTIVITIES 24
Insurance Investment Portfolio 25
CITIGROUP SUPPLEMENTAL DETAIL
Consolidated Statement of Income 26
Earnings Analysis - Managed Basis 27
Consolidated Statement of Financial Position 28
Consumer Loan Delinquency Amounts, Net Credit Losses and Ratios 29
Reserve for Loan Losses 30
NonPerforming Assets 31
</Table>
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[CITIGROUP LOGO]
CITIGROUP - FINANCIAL SUMMARY
(in millions of dollars, except per share amounts)
Citigroup, the preeminent global financial services company with some 200
million customer accounts in more than 100 countries, provides consumers,
corporations governments and institutions a complete range of financial
products and services.
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
--------- --------- --------- --------- --------- ---------
NET INCOME $ 3,538 $ 3,536 $ 3,177 $ 3,875 $ 4,843 $ 4,084
Restructuring -Related Items, After-tax 80 133 85 (13) 30 (25)
Gain on Sale of Stock by Subsidiary, After-tax - - - - (1,061) -
Cumulative Effect of Accounting Changes 42 116 - - 47 -
--------- --------- --------- --------- --------- ---------
CORE INCOME $ 3,660 $ 3,785 $ 3,262 $ 3,862 $ 3,859 $ 4,059
========= ========= ========= ========= ========= =========
BASIC EARNINGS PER SHARE:
NET INCOME $ 0.70 $ 0.70 $ 0.62 $ 0.75 $ 0.94 $ 0.80
========= ========= ========= ========= ========= =========
CORE INCOME $ 0.73 $ 0.75 $ 0.64 $ 0.75 $ 0.75 $ 0.79
--------- --------- --------- --------- --------- ---------
WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO BASIC EPS 4,984.7 4,979.6 5,060.8 5,101.8 5,110.5 5,096.7
========= ========= ========= ========= ========= =========
PREFERRED DIVIDENDS - BASIC $ 28 $ 28 $ 28 $ 26 $ 21 $ 21
========= ========= ========= ========= ========= =========
DILUTED EARNINGS PER SHARE:
NET INCOME $ 0.69 $ 0.69 $ 0.61 $ 0.74 $ 0.93 $ 0.78
CORE INCOME $ 0.71 $ 0.74 $ 0.63 $ 0.74 $ 0.74 $ 0.78
========= ========= ========= ========= ========= =========
ADJUSTED WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO DILUTED EPS 5,110.0 5,100.0 5,169.0 5,209.1 5,209.8 5,185.8
========= ========= ========= ========= ========= =========
PREFERRED DIVIDENDS - DILUTED $ 28 $ 28 $ 28 $ 26 $ 21 $ 21
========= ========= ========= ========= ========= =========
COMMON SHARES OUTSTANDING, AT PERIOD END 5,033.7 5,026.1 5,144.2 5,148.7 5,165.4 5,118.1
TIER 1 CAPITAL RATIO 8.56% 8.82% 8.20% 8.42% 9.13% 9.2%*
========= ========= ========= ========= ========= =========
TOTAL CAPITAL RATIO 11.31% 11.49% 10.77% 10.92% 11.59% 11.7%*
========= ========= ========= ========= ========= =========
LEVERAGE RATIO 6.10% 6.17% 5.65% 5.64% 5.89% 5.9%*
========= ========= ========= ========= ========= =========
TOTAL ASSETS, AT PERIOD END (IN BILLIONS) $ 944.3 $ 953.4 $ 1,068.2 $ 1,051.5 $ 1,057.7 $ 1,082.6*
========= ========= ========= ========= ========= =========
STOCKHOLDERS' EQUITY, AT PERIOD END
(IN BILLIONS) $ 68.7 $ 70.5 $ 78.4 $ 81.2 $ 83.6 $ 85.7*
========= ========= ========= ========= ========= =========
STOCKHOLDERS' EQUITY AND TRUST SECURITIES, AT
PERIOD END (IN BILLIONS) $ 73.6 $ 75.1 $ 85.5 $ 88.4 $ 90.3 $ 92.5*
========= ========= ========= ========= ========= =========
BOOK VALUE PER SHARE, AT PERIOD END $ 13.29 $ 13.68 $ 14.90 $ 15.48 $ 15.92 $ 16.47*
========= ========= ========= ========= ========= =========
RETURN ON COMMON EQUITY (NET INCOME) 21.7% 20.9% 17.1% 19.5% 24.0% 19.5%*
========= ========= ========= ========= ========= =========
RETURN ON COMMON EQUITY (CORE INCOME) 22.5% 22.4% 17.5% 19.4% 19.1% 19.4%*
========= ========= ========= ========= ========= =========
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
----------------- --------- --------- ---------------------
NET INCOME 15% $ 7,074 $ 8,927 26%
Restructuring -Related Items, After-tax 213 5
Gain on Sale of Stock by Subsidiary, After-tax - (1,061)
Cumulative Effect of Accounting Changes 158 47
--------- ---------
CORE INCOME 7% $ 7,445 $ 7,918 6%
BASIC EARNINGS PER SHARE: ========= =========
NET INCOME 14% $ 1.41 $ 1.74 23%
========= =========
CORE INCOME 5% $ 1.48 $ 1.54 4%
========= =========
WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO BASIC EPS 4,982.2 5,103.6
========= =========
PREFERRED DIVIDENDS - BASIC $ 56 $ 42
========= =========
DILUTED EARNINGS PER SHARE:
NET INCOME 13% $ 1.37 $ 1.71 25%
CORE INCOME 5% $ 1.45 $ 1.52 5%
========= =========
ADJUSTED WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO DILUTED EPS 5,105.0 5,197.8
========= =========
PREFERRED DIVIDENDS - DILUTED $ 56 $ 42
========= =========
COMMON SHARES OUTSTANDING, AT PERIOD END 5,026.1 5,118.1
========= =========
TIER 1 CAPITAL RATIO 8.82% 9.2%*
========= =========
TOTAL CAPITAL RATIO 11.49% 11.7%*
========= =========
LEVERAGE RATIO 6.17% 5.9%*
========= =========
TOTAL ASSETS, AT PERIOD END (IN BILLIONS) $ 953.4 $ 1,082.6*
========= =========
STOCKHOLDERS' EQUITY, AT PERIOD END
(IN BILLIONS) $ 70.5 $ 85.7*
========= =========
STOCKHOLDERS' EQUITY AND TRUST SECURITIES, AT
PERIOD END (IN BILLIONS) $ 75.1 $ 92.5*
========= =========
BOOK VALUE PER SHARE, AT PERIOD END $ 13.68 $ 16.47*
========= =========
RETURN ON COMMON EQUITY (NET INCOME) 21.3% 21.7%*
========= =========
RETURN ON COMMON EQUITY (CORE INCOME) 22.5% 19.3%*
========= =========
</Table>
* Preliminary
PAGE 1
<Page>
[CITIGROUP LOGO]
CITIGROUP -- CORE INCOME
PRODUCT VIEW
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q
2001 2001 2001 2001 2002
------------ ------------ ------------ --------- ---------
GLOBAL CONSUMER:
Cards $ 586 $ 555 $ 710 $ 731 $ 597
Consumer Finance 397 491 549 488 536
Retail Banking 563 594 727 720 726
Other (41) (29) (24) (54) (47)
------------ ------------ ------------ --------- ---------
TOTAL GLOBAL CONSUMER 1,505 1,611 1,962 1,885 1,812
------------ ------------ ------------ --------- ---------
GLOBAL CORPORATE AND INVESTMENT BANK:
Capital Markets and Banking 1,201 1,033 1,006 768 1,029
Private Client 196 206 182 189 197
Transaction Services 91 116 100 113 82
Other (12) 35 7 24 (22)
------------ ------------ ------------ --------- ---------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 1,476 1,390 1,295 1,094 1,286
------------ ------------ ------------ --------- ---------
GLOBAL INVESTMENT MANAGEMENT:
Life Insurance and Annuities 215 236 185 200 204
Private Banking 95 92 91 94 112
Asset Management 91 84 104 125 126
------------ ------------ ------------ --------- ---------
TOTAL GLOBAL INVESTMENT MANAGEMENT 401 412 380 419 442
------------ ------------ ------------ --------- ---------
PROPRIETARY INVESTMENT ACTIVITIES (1) 6 208 (185) 289 51
CORPORATE / OTHER (196) (179) (133) (129) (78)
PROPERTY AND CASUALTY:
Personal Lines 95 47 32 60 71
Commercial Lines 296 302 (127) 281 278
Realized Insurance Investment Portfolio Gains (Losses) 125 32 63 (10) 19
Interest and Other (48) (38) (25) (27) (22)
------------ ------------ ------------ --------- ---------
TOTAL PROPERTY AND CASUALTY 468 343 (57) 304 346
------------ ------------ ------------ --------- ---------
=================================================================================================================================
TOTAL CORE INCOME $ 3,660 $ 3,785 $ 3,262 $ 3,862 $ 3,859
=================================================================================================================================
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2Q 2001 INCREASE/ 2Q 2Q TD 2Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
-------- ---------------- -------- -------- --------------------
GLOBAL CONSUMER:
Cards $ 744 34% $ 1,141 $ 1,341 18%
Consumer Finance 565 15% 888 1,101 24%
Retail Banking 748 26% 1,157 1,474 27%
Other (48) (66%) (70) (95) (36%)
-------- -------- --------
TOTAL GLOBAL CONSUMER 2,009 25% 3,116 3,821 23%
-------- -------- --------
GLOBAL CORPORATE AND INVESTMENT BANK:
Capital Markets and Banking 1,070 4% 2,234 2,099 (6%)
Private Client 204 (1%) 402 401 -
Transaction Services 204 76% 207 286 38%
Other (33) NM 23 (55) NM
-------- -------- --------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 1,445 4% 2,866 2,731 (5%)
-------- -------- --------
GLOBAL INVESTMENT MANAGEMENT:
Life Insurance and Annuities 255 8% 451 459 2%
Private Banking 113 23% 187 225 20%
Asset Management 137 63% 175 263 50%
-------- -------- --------
TOTAL GLOBAL INVESTMENT MANAGEMENT 505 23% 813 947 16%
-------- -------- --------
PROPRIETARY INVESTMENT ACTIVITIES (1) (190) NM 214 (139) NM
CORPORATE / OTHER 34 NM (375) (44) 88%
PROPERTY AND CASUALTY:
Personal Lines 54 15% 142 125 (12%)
Commercial Lines 239 (21%) 598 517 (14%)
Realized Insurance Investment Portfolio Gains (Losses) (18) NM 157 1 (99%)
Interest and Other (19) 50% (86) (41) 52%
-------- -------- --------
TOTAL PROPERTY AND CASUALTY 256 (25%) 811 602 (26%)
-------- -------- --------
===============================================================================================================
TOTAL CORE INCOME $ 4,059 7% $ 7,445 $ 7,918 6%
===============================================================================================================
</Table>
(1) Includes Realized Insurance Investment Portfolio Gains (Losses)
primarily from the Life Insurance and Annuities, and Primerica Financial
Services businesses.
NM Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 2
<Page>
[CITIGROUP LOGO]
CITIGROUP -- CORE INCOME
REGIONAL VIEW
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
-------- -------- -------- -------- -------- --------
NORTH AMERICA (EXCLUDING MEXICO) (1)
Consumer $ 1,005 $ 1,065 $ 1,238 $ 1,275 $ 1,215 $ 1,287
Corporate 731 752 794 542 907 775
Investment Management 327 355 306 328 357 352
-------- -------- -------- -------- -------- --------
TOTAL NORTH AMERICA (EXCLUDING MEXICO) 2,063 2,172 2,338 2,145 2,479 2,414
-------- -------- -------- -------- -------- --------
MEXICO
Consumer (14) (13) 112 110 145 181
Corporate 19 22 4 61 98 45
Investment Management 7 10 19 46 48 70
-------- -------- -------- -------- -------- --------
TOTAL MEXICO 12 19 135 217 291 296
-------- -------- -------- -------- -------- --------
WESTERN EUROPE
Consumer 104 98 115 130 134 141
Corporate 186 126 85 146 44 115
Investment Management 1 1 - 4 (7) 3
-------- -------- -------- -------- -------- --------
TOTAL WESTERN EUROPE 291 225 200 280 171 259
-------- -------- -------- -------- -------- --------
JAPAN
Consumer 205 242 259 257 240 254
Corporate 98 4 19 (21) 23 (3)
Investment Management 8 6 9 10 16 16
-------- -------- -------- -------- -------- --------
TOTAL JAPAN 311 252 287 246 279 267
-------- -------- -------- -------- -------- --------
ASIA (EXCLUDING JAPAN)
Consumer 142 144 157 165 145 146
Corporate 128 225 101 176 175 185
Investment Management 27 14 18 20 27 28
-------- -------- -------- -------- -------- --------
TOTAL ASIA 297 383 276 361 347 359
-------- -------- -------- -------- -------- --------
LATIN AMERICA
Consumer 49 55 57 (78) (92) (26)
Corporate 162 155 175 57 (92) 187
Investment Management 23 18 22 2 (3) 31
-------- -------- -------- -------- -------- --------
TOTAL LATIN AMERICA 234 228 254 (19) (187) 192
-------- -------- -------- -------- -------- --------
CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA
Consumer 14 20 24 26 25 26
Corporate 152 106 117 133 131 141
Investment Management 8 8 6 9 4 5
-------- -------- -------- -------- -------- --------
TOTAL CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA 174 134 147 168 160 172
-------- -------- -------- -------- -------- --------
PROPRIETARY INVESTMENT ACTIVITIES 6 208 (185) 289 51 (190)
CORPORATE / OTHER (196) (179) (133) (129) (78) 34
PROPERTY AND CASUALTY
Personal Lines 95 47 32 60 71 54
Commercial Lines 296 302 (127) 281 278 239
Realized Insurance Investment Portfolio Gains (Losses) 125 32 63 (10) 19 (18)
Interest and Other (48) (38) (25) (27) (22) (19)
-------- -------- -------- -------- -------- --------
TOTAL PROPERTY AND CASUALTY 468 343 (57) 304 346 256
-------- -------- -------- -------- -------- --------
===============================================================================================================================
TOTAL CORE INCOME $ 3,660 $ 3,785 $ 3,262 $ 3,862 $ 3,859 $ 4,059
===============================================================================================================================
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
------------------ ------- -------- ----------------------
NORTH AMERICA (EXCLUDING MEXICO) (1)
Consumer 21% $ 2,070 $ 2,502 21%
Corporate 3% 1,483 1,682 13%
Investment Management (1%) 682 709 4%
------- --------
TOTAL NORTH AMERICA (EXCLUDING MEXICO) 11% 4,235 4,893 16%
------- --------
MEXICO
Consumer NM (27) 326 NM
Corporate NM 41 143 NM
Investment Management NM 17 118 NM
------- --------
TOTAL MEXICO NM 31 587 NM
------- --------
WESTERN EUROPE
Consumer 44% 202 275 36%
Corporate (9%) 312 159 (49%)
Investment Management NM 2 (4) NM
------- --------
TOTAL WESTERN EUROPE 15% 516 430 (17%)
------- --------
JAPAN
Consumer 5% 447 494 11%
Corporate NM 102 20 (80%)
Investment Management NM 14 32 NM
------- --------
TOTAL JAPAN 6% 563 546 (3%)
------- --------
ASIA (EXCLUDING JAPAN)
Consumer 1% 286 291 2%
Corporate (18%) 353 360 2%
Investment Management 100% 41 55 34%
------- --------
TOTAL ASIA (6%) 680 706 4%
------- --------
LATIN AMERICA
Consumer NM 104 (118) NM
Corporate 21% 317 95 (70%)
Investment Management 72% 41 28 (32%)
------- --------
TOTAL LATIN AMERICA (16%) 462 5 (99%)
------- --------
CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA
Consumer 30% 34 51 50%
Corporate 33% 258 272 5%
Investment Management (38%) 16 9 (44%)
------- --------
TOTAL CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA 28% 308 332 8%
------- --------
PROPRIETARY INVESTMENT ACTIVITIES NM 214 (139) NM
CORPORATE / OTHER NM (375) (44) 88%
PROPERTY AND CASUALTY
Personal Lines 15% 142 125 (12%)
Commercial Lines (21%) 598 517 (14%)
Realized Insurance Investment Portfolio Gains (Losses) NM 157 1 (99%)
Interest and Other 50% (86) (41) 52%
------- --------
TOTAL PROPERTY AND CASUALTY (25%) 811 602 (26%)
------- --------
============================================================================================================
TOTAL CORE INCOME 7% $ 7,445 $ 7,918 6%
============================================================================================================
</Table>
(1) Excludes Property and Casualty, Proprietary Investment Activities and
Corporate / Other.
NM Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 3
<Page>
[CITIGROUP LOGO]
CITIGROUP -- ADJUSTED NET REVENUES
PRODUCT VIEW
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
-------- -------- -------- -------- -------- --------
GLOBAL CONSUMER:
Cards $ 3,606 $ 3,675 $ 4,032 $ 4,195 $ 4,150 $ 4,340
Consumer Finance 2,153 2,178 2,300 2,237 2,298 2,406
Retail Banking 2,490 2,568 3,021 3,159 3,335 3,207
Other 42 120 103 54 35 70
-------- -------- -------- -------- -------- --------
TOTAL GLOBAL CONSUMER 8,291 8,541 9,456 9,645 9,818 10,023
-------- -------- -------- -------- -------- --------
GLOBAL CORPORATE AND INVESTMENT BANK:
Capital Markets and Banking 5,172 4,153 3,868 4,299 4,631 4,509
Private Client 1,549 1,508 1,450 1,433 1,477 1,523
Transaction Services 902 891 856 867 835 939
Other (65) (18) (60) (59) (99) (104)
-------- -------- -------- -------- -------- --------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 7,558 6,534 6,114 6,540 6,844 6,867
-------- -------- -------- -------- -------- --------
GLOBAL INVESTMENT MANAGEMENT:
Life Insurance and Annuities 1,170 1,014 972 1,223 1,002 1,216
Private Banking 392 376 366 408 423 427
Asset Management 516 491 546 532 519 522
-------- -------- -------- -------- -------- --------
TOTAL GLOBAL INVESTMENT MANAGEMENT 2,078 1,881 1,884 2,163 1,944 2,165
-------- -------- -------- -------- -------- --------
PROPRIETARY INVESTMENT ACTIVITIES (1) 41 311 (262) 494 117 (254)
CORPORATE / OTHER (132) (105) (87) (10) 96 273
PROPERTY AND CASUALTY:
Personal Lines 1,092 1,117 1,137 1,156 1,155 1,183
Commercial Lines 1,994 2,040 1,992 2,036 2,047 2,173
Realized Insurance Investment Portfolio Gains (Losses) 192 50 96 (16) 29 (36)
Interest and Other (67) (54) (36) (39) (34) (40)
-------- -------- -------- -------- -------- --------
TOTAL PROPERTY AND CASUALTY 3,211 3,153 3,189 3,137 3,197 3,280
-------- -------- -------- -------- -------- --------
==============================================================================================================================
TOTAL ADJUSTED NET REVENUES $ 21,047 $ 20,315 $ 20,294 $ 21,969 $ 22,016 $ 22,354
==============================================================================================================================
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
------------------ -------- -------- ---------------------
GLOBAL CONSUMER:
Cards 18% $ 7,281 $ 8,490 17%
Consumer Finance 10% 4,331 4,704 9%
Retail Banking 25% 5,058 6,542 29%
Other (42%) 162 105 (35%)
-------- --------
TOTAL GLOBAL CONSUMER 17% 16,832 19,841 18%
-------- --------
GLOBAL CORPORATE AND INVESTMENT BANK:
Capital Markets and Banking 9% 9,325 9,140 (2%)
Private Client 1% 3,057 3,000 (2%)
Transaction Services 5% 1,793 1,774 (1%)
Other NM (83) (203) NM
-------- --------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 5% 14,092 13,711 (3%)
-------- --------
GLOBAL INVESTMENT MANAGEMENT:
Life Insurance and Annuities 20% 2,184 2,218 2%
Private Banking 14% 768 850 11%
Asset Management 6% 1,007 1,041 3%
-------- --------
TOTAL GLOBAL INVESTMENT MANAGEMENT 15% 3,959 4,109 4%
-------- --------
PROPRIETARY INVESTMENT ACTIVITIES (1) NM 352 (137) NM
CORPORATE / OTHER NM (237) 369 NM
PROPERTY AND CASUALTY:
Personal Lines 6% 2,209 2,338 6%
Commercial Lines 7% 4,034 4,220 5%
Realized Insurance Investment Portfolio Gains (Losses) NM 242 (7) NM
Interest and Other 26% (121) (74) 39%
-------- --------
TOTAL PROPERTY AND CASUALTY 4% 6,364 6,477 2%
-------- --------
===================================================================================================
TOTAL ADJUSTED NET REVENUES 10% $ 41,362 $ 44,370 7%
===================================================================================================
</Table>
(1) Includes Realized Insurance Investment Portfolio Gains (Losses) primarily
from the Life Insurance and Annuities, and Primerica Financial Services
businesses.
NM Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 4
<Page>
[CITIGROUP LOGO]
CITIGROUP -- ADJUSTED NET REVENUES
REGIONAL VIEW
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
-------- --------- -------- -------- -------- --------
NORTH AMERICA (EXCLUDING MEXICO) (1)
Consumer $ 5,786 $ 6,049 $ 6,406 $ 6,577 $ 6,601 $ 6,817
Corporate 4,634 3,820 3,746 3,923 4,400 4,229
Investment Management 1,613 1,457 1,354 1,587 1,402 1,530
-------- --------- -------- -------- -------- --------
TOTAL NORTH AMERICA (EXCLUDING MEXICO) 12,033 11,326 11,506 12,087 12,403 12,576
-------- --------- -------- -------- -------- --------
MEXICO
Consumer 57 72 532 750 753 773
Corporate 84 77 83 205 198 127
Investment Management 46 46 106 212 185 212
-------- --------- -------- -------- -------- --------
TOTAL MEXICO 187 195 721 1,167 1,136 1,112
-------- --------- -------- -------- -------- --------
WESTERN EUROPE
Consumer 564 540 583 607 612 671
Corporate 1,129 1,058 803 956 796 963
Investment Management 77 73 75 71 66 81
-------- --------- -------- -------- -------- --------
TOTAL WESTERN EUROPE 1,770 1,671 1,461 1,634 1,474 1,715
-------- --------- -------- -------- -------- --------
JAPAN
Consumer 835 837 880 878 817 939
Corporate 192 50 66 16 63 27
Investment Management 57 57 58 63 70 74
-------- --------- -------- -------- -------- --------
TOTAL JAPAN 1,084 944 1,004 957 950 1,040
-------- --------- -------- -------- -------- --------
ASIA (EXCLUDING JAPAN)
Consumer 548 545 559 571 557 580
Corporate 557 651 509 564 569 605
Investment Management 107 81 85 99 103 109
-------- --------- -------- -------- -------- --------
TOTAL ASIA 1,212 1,277 1,153 1,234 1,229 1,294
-------- --------- -------- -------- -------- --------
LATIN AMERICA
Consumer 366 357 350 114 322 76
Corporate 473 456 492 447 387 455
Investment Management 139 131 171 91 80 120
-------- --------- -------- -------- -------- --------
TOTAL LATIN AMERICA 978 944 1,013 652 789 651
-------- --------- -------- -------- -------- --------
CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA
Consumer 135 141 146 148 156 167
Corporate 489 422 415 429 431 461
Investment Management 39 36 35 40 38 39
-------- --------- -------- -------- -------- --------
TOTAL CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA 663 599 596 617 625 667
-------- --------- -------- -------- -------- --------
PROPRIETARY INVESTMENT ACTIVITIES 41 311 (262) 494 117 (254)
CORPORATE / OTHER (132) (105) (87) (10) 96 273
PROPERTY AND CASUALTY
Personal Lines 1,092 1,117 1,137 1,156 1,155 1,183
Commercial Lines 1,994 2,040 1,992 2,036 2,047 2,173
Realized Insurance Investment Portfolio Gains (Losses) 192 50 96 (16) 29 (36)
Interest and Other (67) (54) (36) (39) (34) (40)
-------- --------- -------- -------- -------- --------
TOTAL PROPERTY AND CASUALTY 3,211 3,153 3,189 3,137 3,197 3,280
-------- --------- -------- -------- -------- --------
====================================================================================================================================
TOTAL ADJUSTED NET REVENUES $ 21,047 $ 20,315 $ 20,294 $ 21,969 $ 22,016 $ 22,354
====================================================================================================================================
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
----------------- -------- -------- ---------------------
NORTH AMERICA (EXCLUDING MEXICO) (1)
Consumer 13% $ 11,835 $ 13,418 13%
Corporate 11% 8,454 8,629 2%
Investment Management 5% 3,070 2,932 (4%)
-------- --------
TOTAL NORTH AMERICA (EXCLUDING MEXICO) 11% 23,359 24,979 7%
-------- --------
MEXICO
Consumer NM 129 1,526 NM
Corporate 65% 161 325 NM
Investment Management NM 92 397 NM
-------- --------
TOTAL MEXICO NM 382 2,248 NM
-------- --------
WESTERN EUROPE
Consumer 24% 1,104 1,283 16%
Corporate (9%) 2,187 1,759 (20%)
Investment Management 11% 150 147 (2%)
-------- --------
TOTAL WESTERN EUROPE 3% 3,441 3,189 (7%)
-------- --------
JAPAN
Consumer 12% 1,672 1,756 5%
Corporate (46%) 242 90 (63%)
Investment Management 30% 114 144 26%
-------- --------
TOTAL JAPAN 10% 2,028 1,990 (2%)
-------- --------
ASIA (EXCLUDING JAPAN)
Consumer 6% 1,093 1,137 4%
Corporate (7%) 1,208 1,174 (3%)
Investment Management 35% 188 212 13%
-------- --------
TOTAL ASIA 1% 2,489 2,523 1%
-------- --------
LATIN AMERICA
Consumer (79%) 723 398 (45%)
Corporate 0% 929 842 (9%)
Investment Management (8%) 270 200 (26%)
-------- --------
TOTAL LATIN AMERICA (31%) 1,922 1,440 (25%)
-------- --------
CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA
Consumer 18% 276 323 17%
Corporate 9% 911 892 (2%)
Investment Management 8% 75 77 3%
-------- --------
TOTAL CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA 11% 1,262 1,292 2%
-------- --------
PROPRIETARY INVESTMENT ACTIVITIES NM 352 (137) NM
CORPORATE / OTHER NM (237) 369 NM
PROPERTY AND CASUALTY
Personal Lines 6% 2,209 2,338 6%
Commercial Lines 7% 4,034 4,220 5%
Realized Insurance Investment Portfolio Gains (Losses) NM 242 (7) NM
Interest and Other 26% (121) (74) 39%
-------- --------
TOTAL PROPERTY AND CASUALTY 4% 6,364 6,477 2%
-------- --------
===========================================================================================================
TOTAL ADJUSTED NET REVENUES 10% $ 41,362 $ 44,370 7%
===========================================================================================================
</Table>
(1) Excludes Property and Casualty, Proprietary Investment Activities and
Corporate / Other.
NM Not meaningful
PAGE 5
<Page>
[CITIGROUP LOGO]
GLOBAL CONSUMER
CARDS
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
--------- --------- --------- --------- --------- ---------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE (1) $ 3,606 $ 3,675 $ 4,032 $ 4,195 $ 4,150 $ 4,340
Adjusted Operating Expenses 1,355 1,314 1,361 1,398 1,321 1,391
Adjusted Provision for Credit Losses (1) 1,322 1,482 1,552 1,694 1,911 1,818
--------- --------- --------- --------- --------- ---------
Core Income Before Taxes 929 879 1,119 1,103 918 1,131
Income Taxes 343 324 409 372 321 387
--------- --------- --------- --------- --------- ---------
CORE INCOME $ 586 $ 555 $ 710 $ 731 $ 597 $ 744
========= ========= ========= ========= ========= =========
Managed Average Assets (in billions of dollars) $ 117 $ 118 $ 122 $ 123 $ 123 $ 123
========= ========= ========= ========= ========= =========
Return on Managed Assets 2.03% 1.89% 2.31% 2.36% 1.97% 2.43%
========= ========= ========= ========= ========= =========
KEY INDICATORS
(in billions of dollars)
TOTAL EOP OPEN ACCOUNTS (IN MILLIONS):
North America 95.5 95.5 97.3 96.8 95.5 94.7
International 11.3 12.0 12.4 12.9 12.9 13.2
--------- --------- --------- --------- --------- ---------
Total 106.8 107.5 109.7 109.7 108.4 107.9
========= ========= ========= ========= ========= =========
TOTAL SALES:
North America $ 54.8 $ 59.0 $ 58.5 $ 60.9 $ 54.9 $ 62.0
International 7.7 8.2 8.2 8.3 7.7 10.4
--------- --------- --------- --------- --------- ---------
Total $ 62.5 $ 67.2 $ 66.7 $ 69.2 $ 62.6 $ 72.4
========= ========= ========= ========= ========= =========
AVERAGE MANAGED LOANS:
North America $ 102.2 $ 102.4 $ 105.9 $ 107.6 $ 107.6 $ 108.0
International 9.5 9.8 10.4 10.4 10.2 10.6
--------- --------- --------- --------- --------- ---------
Total $ 111.7 $ 112.2 $ 116.3 $ 118.0 $ 117.8 $ 118.6
========= ========= ========= ========= ========= =========
MANAGED NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
North America $ 1,217 $ 1,401 $ 1,448 $ 1,589 $ 1,681 $ 1,719
International 90 102 100 104 112 123
--------- --------- --------- --------- --------- ---------
Total $ 1,307 $ 1,503 $ 1,548 $ 1,693 $ 1,793 $ 1,842
========= ========= ========= ========= ========= =========
END OF PERIOD MANAGED RECEIVABLES $ 111.9 $ 116.0 $ 119.5 $ 122.6 $ 118.9 $ 122.4
NET CREDIT LOSS RATIO 4.74% 5.37% 5.28% 5.69% 6.17% 6.23%
LOANS 90+DAYS PAST DUE:
In millions of dollars $ 2,001 $ 1,938 $ 2,119 $ 2,384 $ 2,488 $ 2,248
% 1.80% 1.68% 1.79% 1.96% 2.11% 1.85%
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
------------------ -------- ------- ---------------------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE (1) 18% $ 7,281 $ 8,490 17%
Adjusted Operating Expenses 6% 2,669 2,712 2%
Adjusted Provision for Credit Losses (1) 23% 2,804 3,729 33%
-------- -------
Core Income Before Taxes 29% 1,808 2,049 13%
Income Taxes 19% 667 708 6%
-------- -------
CORE INCOME 34% $ 1,141 $ 1,341 18%
======== =======
Managed Average Assets (in billions of dollars) 4% $ 118 $ 123 4%
======== =======
Return on Managed Assets 1.95% 2.20%
======== =======
KEY INDICATORS
(in billions of dollars)
TOTAL EOP OPEN ACCOUNTS (IN MILLIONS):
North America (1%)
International 10%
Total -
TOTAL SALES:
North America 5% $ 113.8 $ 116.9 3%
International 27% 15.9 18.1 14%
-------- -------
Total 8% $ 129.7 $ 135.0 4%
======== =======
AVERAGE MANAGED LOANS:
North America 5% $ 102.3 $ 107.8 5%
International 8% 9.7 10.4 7%
-------- -------
Total 6% $ 112.0 $ 118.2 6%
======== =======
MANAGED NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
North America 23% $ 2,618 $ 3,400 30%
International 21% 192 235 22%
-------- -------
Total 23% $ 2,810 $ 3,635 29%
======== =======
END OF PERIOD MANAGED RECEIVABLES 6%
NET CREDIT LOSS RATIO
LOANS 90+DAYS PAST DUE:
In millions of dollars 16%
%
</Table>
(1) On a managed basis.
NM Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 6
<Page>
[CITIGROUP LOGO]
GLOBAL CONSUMER
CARDS
GEOGRAPHIC DISTRIBUTION
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
-------- -------- -------- -------- -------- --------
GEOGRAPHIC DISTRIBUTION
NORTH AMERICA
ADJUSTED REVENUES, NET OF INTEREST EXPENSE (1) $ 3,047 $ 3,130 $ 3,470 $ 3,738 $ 3,609 $ 3,768
Adjusted Operating Expenses 1,058 1,024 1,082 1,122 1,040 1,090
Adjusted Provision for Credit Losses (1) 1,229 1,379 1,449 1,589 1,681 1,719
-------- -------- -------- -------- -------- --------
Core Income Before Taxes 760 727 939 1,027 888 959
Income Taxes 283 271 348 349 320 328
-------- -------- -------- -------- -------- --------
CORE INCOME $ 477 $ 456 $ 591 $ 678 $ 568 $ 631
======== ======== ======== ======== ======== ========
Managed Average Assets (in billions of dollars) $ 107 $ 107 $ 111 $ 112 $ 112 $ 112
======== ======== ======== ======== ======== ========
Return on Managed Assets 1.81% 1.71% 2.11% 2.40% 2.06% 2.26%
======== ======== ======== ======== ======== ========
INTERNATIONAL
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 559 $ 545 $ 562 $ 457 $ 541 $ 572
Adjusted Operating Expenses 297 290 279 276 281 301
Provision for Credit Losses 93 103 103 105 230 99
-------- -------- -------- -------- -------- --------
Core Income Before Taxes 169 152 180 76 30 172
Income Taxes 60 53 61 23 1 59
-------- -------- -------- -------- -------- --------
CORE INCOME $ 109 $ 99 $ 119 $ 53 $ 29 $ 113
======== ======== ======== ======== ======== ========
Average Assets (in billions of dollars) $ 10 $ 11 $ 11 $ 11 $ 11 $ 11
======== ======== ======== ======== ======== ========
Return on Assets 4.42% 3.61% 4.29% 1.91% 1.07% 4.12%
======== ======== ======== ======== ======== ========
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
------------------ -------- ------- ---------------------
GEOGRAPHIC DISTRIBUTION
NORTH AMERICA
ADJUSTED REVENUES, NET OF INTEREST EXPENSE (1) 20% $ 6,177 $ 7,377 19%
Adjusted Operating Expenses 6% 2,082 2,130 2%
Adjusted Provision for Credit Losses (1) 25% 2,608 3,400 30%
-------- --------
Core Income Before Taxes 32% 1,487 1,847 24%
Income Taxes 21% 554 648 17%
-------- --------
CORE INCOME 38% $ 933 $ 1,199 29%
======== ========
Managed Average Assets (in billions of dollars) 5% $ 107 $ 112 5%
======== ========
Return on Managed Assets 1.76% 2.16%
======== ========
INTERNATIONAL
TOTAL REVENUES, NET OF INTEREST EXPENSE 5% $ 1,104 $ 1,113 1%
Adjusted Operating Expenses 4% 587 582 (1%)
Provision for Credit Losses (4%) 196 329 68%
-------- --------
Core Income Before Taxes 13% 321 202 (37%)
Income Taxes 11% 113 60 (47%)
-------- --------
CORE INCOME 14% $ 208 $ 142 (32%)
======== ========
Average Assets (in billions of dollars) - $ 11 $ 11 -
======== ========
Return on Assets 3.81% 2.60%
======== ========
</Table>
(1) On a managed basis.
NM Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 7
<Page>
[CITIGROUP LOGO]
GLOBAL CONSUMER
CARDS
CITICARDS AND DINERS CLUB N.A. - SUPPLEMENTAL DATA
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
-------- -------- -------- -------- -------- --------
CITICARDS AND DINERS CLUB N.A. :
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 3,012 $ 3,085 $ 3,340 $ 3,548 $ 3,438 $ 3,589
Adjusted Operating Expenses 1,040 1,002 1,002 1,019 953 1,015
Adjusted Provision for Credit Losses 1,221 1,371 1,434 1,567 1,659 1,705
-------- -------- -------- -------- -------- --------
Core Income Before Taxes 751 712 904 962 826 869
Income Taxes 279 264 338 339 306 313
-------- -------- -------- -------- -------- --------
CORE INCOME $ 472 $ 448 $ 566 $ 623 $ 520 $ 556
======== ======== ======== ======== ======== ========
Managed Average Assets (in billions of dollars) $ 106 $ 106 $ 109 $ 110 $ 110 $ 110
======== ======== ======== ======== ======== ========
Return on Managed Assets 1.81% 1.70% 2.06% 2.25% 1.92% 2.03%
======== ======== ======== ======== ======== ========
CITICARDS (1):
KEY INDICATORS:
(in billions of dollars)
Net Interest Revenue (in millions of dollars) (2) $ 2,379 $ 2,421 $ 2,696 $ 2,904 $ 2,767 $ 2,717
% of Average Managed Loans 9.63% 9.65% 10.38% 11.04% 10.77% 10.41%
Risk Adjusted Revenue (in millions of dollars) (3) $ 1,716 $ 1,613 $ 1,838 $ 1,909 $ 1,705 $ 1,771
% of Average Managed Loans 6.95% 6.43% 7.08% 7.25% 6.64% 6.78%
Adjusted Operating Expenses as % of Average Managed Loans 3.93% 3.73% 3.61% 3.50% 3.48% 3.67%
End of Period Managed Receivables $ 100.5 $ 103.9 $ 105.6 $ 108.9 $ 105.4 $ 108.2
Total EOP Open Accounts (in millions) 93.2 94.1 93.4 92.9 91.6 90.6
Total Sales $ 51.2 $ 55.6 $ 55.0 $ 56.7 $ 50.8 $ 57.7
END OF PERIOD LOANS:
On Balance Sheet $ 32.6 $ 32.6 $ 33.0 $ 34.2 $ 31.8 $ 35.2
Securitized 60.1 61.4 65.2 67.0 65.9 65.8
Held for Sale 7.0 9.0 6.5 6.5 6.5 6.5
-------- -------- -------- -------- -------- --------
Total $ 99.7 $ 103.0 $ 104.7 $ 107.7 $ 104.2 $ 107.5
======== ======== ======== ======== ======== ========
AVERAGE LOANS:
On Balance Sheet $ 34.7 $ 33.5 $ 33.5 $ 33.0 $ 30.9 $ 33.0
Securitized 58.5 59.7 61.3 64.9 66.8 65.2
Held for Sale 7.0 7.4 8.2 6.5 6.5 6.5
-------- -------- -------- -------- -------- --------
Total $ 100.2 $ 100.6 $ 103.0 $ 104.4 $ 104.2 $ 104.7
======== ======== ======== ======== ======== ========
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
On Balance Sheet $ 465 $ 481 $ 541 $ 615 $ 633 $ 615
Securitized 668 812 790 870 935 989
Held for Sale 63 90 92 69 78 92
-------- -------- -------- -------- -------- --------
Total $ 1,196 $ 1,383 $ 1,423 $ 1,554 $ 1,646 $ 1,696
======== ======== ======== ======== ======== ========
COINCIDENT NET CREDIT LOSS RATIO 4.84% 5.51% 5.48% 5.91% 6.41% 6.50%
12 MONTH LAGGED NET CREDIT LOSS RATIO 5.72% 6.29% 5.96% 6.23% 6.66% 6.76%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 1,836 $ 1,775 $ 1,908 $ 2,135 $ 2,219 $ 1,982
% 1.84% 1.72% 1.82% 1.98% 2.13% 1.84%
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
------------------ -------- -------- ---------------------
CITICARDS AND DINERS CLUB N.A. :
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 16% $ 6,097 $ 7,027 15%
Adjusted Operating Expenses 1% 2,042 1,968 (4%)
Adjusted Provision for Credit Losses 24% 2,592 3,364 30%
-------- --------
Core Income Before Taxes 22% 1,463 1,695 16%
Income Taxes 19% 543 619 14%
-------- --------
CORE INCOME 24% $ 920 $ 1,076 17%
======== ========
Managed Average Assets (in billions of dollars) 4% $ 106 $ 110 4%
======== ========
Return on Managed Assets 1.75% 1.97%
======== ========
CITICARDS (1):
KEY INDICATORS:
(in billions of dollars)
Net Interest Revenue (in millions of dollars) (2) 12% $ 4,800 $ 5,484 14%
% of Average Managed Loans 9.64% 10.59%
Risk Adjusted Revenue (in millions of dollars) (3) 10% $ 3,329 $ 3,476 4%
% of Average Managed Loans 6.69% 6.71%
Adjusted Operating Expenses as % of Average Managed Loans
End of Period Managed Receivables 4%
Total EOP Open Accounts (in millions) (4%)
Total Sales 4%
END OF PERIOD LOANS:
On Balance Sheet 8%
Securitized 7%
Held for Sale (28%)
Total 4%
AVERAGE LOANS:
On Balance Sheet (1%) $ 34.1 $ 32.0 (6%)
Securitized 9% 59.1 66.0 12%
Held for Sale (12%) 7.2 6.5 (10%)
-------- --------
Total 4% $ 100.4 $ 104.5 4%
======== ========
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
On Balance Sheet 28% $ 946 $ 1,248 32%
Securitized 22% 1,480 1,924 30%
Held for Sale 2% 153 170 11%
-------- --------
Total 23% $ 2,579 $ 3,342 30%
======== ========
COINCIDENT NET CREDIT LOSS RATIO
12 MONTH LAGGED NET CREDIT LOSS RATIO
LOANS 90+ DAYS PAST DUE:
In millions of dollars 12%
%
</Table>
(1) CitiCards is included within the North American Region of Cards and
excludes Diners Club N.A., Mexico and Puerto Rico.
(2) Includes delinquency and other risk-based charges.
(3) Risk Adjusted Revenue is adjusted revenues less managed net credit losses.
NM Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 8
<Page>
[CITIGROUP LOGO]
GLOBAL CONSUMER
CONSUMER FINANCE
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
-------- -------- -------- -------- -------- --------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 2,153 $ 2,178 $ 2,300 $ 2,237 $ 2,298 $ 2,406
Adjusted Operating Expenses 922 813 812 755 728 764
Adjusted Provision for Credit Losses 603 594 623 709 737 763
-------- -------- -------- -------- -------- --------
Core Income Before Taxes 628 771 865 773 833 879
Income Taxes 231 280 316 285 297 314
-------- -------- -------- -------- -------- --------
CORE INCOME $ 397 $ 491 $ 549 $ 488 $ 536 $ 565
======== ======== ======== ======== ======== ========
Average Assets (in billions of dollars) $ 82 $ 83 $ 85 $ 86 $ 87 $ 90
======== ======== ======== ======== ======== ========
Return on Assets 1.96% 2.37% 2.56% 2.25% 2.50% 2.52%
======== ======== ======== ======== ======== ========
KEY INDICATORS
AVERAGE LOANS (IN BILLIONS OF DOLLARS):
Real estate secured loans $ 43.1 $ 43.4 $ 44.5 $ 45.3 $ 45.5 $ 46.3
Personal loans 18.7 18.9 19.4 19.6 19.2 20.6
Auto 3.8 4.4 4.9 5.4 5.7 6.1
Sales finance and other 3.5 3.5 3.5 3.5 3.0 3.6
-------- -------- -------- -------- -------- --------
Total $ 69.1 $ 70.2 $ 72.3 $ 73.8 $ 73.4 $ 76.6
======== ======== ======== ======== ======== ========
AVERAGE LOANS (IN BILLIONS OF DOLLARS):
North America $ 56.2 $ 57.0 $ 58.2 $ 59.2 $ 59.8 $ 60.9
International 12.9 13.2 14.1 14.6 13.6 15.7
-------- -------- -------- -------- -------- --------
Total $ 69.1 $ 70.2 $ 72.3 $ 73.8 $ 73.4 $ 76.6
======== ======== ======== ======== ======== ========
AVERAGE YIELD
North America 14.05% 13.86% 13.53% 13.20% 13.18% 13.06%
International 27.25% 25.36% 24.83% 23.07% 22.43% 23.37%
Total 16.50% 16.02% 15.73% 15.14% 14.93% 15.15%
AVERAGE NET INTEREST MARGIN
North America 7.92% 8.18% 8.31% 8.36% 8.57% 8.50%
International 23.78% 22.10% 21.78% 20.84% 20.59% 21.92%
Total 10.87% 10.79% 10.93% 10.83% 10.84% 11.22%
NET CREDIT LOSS RATIO 2.99% 2.91% 2.94% 3.54% 3.63% 3.71%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 1,764 $ 1,943 $ 2,134 $ 2,243 $ 2,213 $ 2,131
% 2.54% 2.74% 2.89% 3.04% 2.97% 2.72%
NUMBER OF OFFICES:
North America 2,576 2,484 2,468 2,413 2,394 2,410
International 1,180 1,183 1,174 1,150 1,141 1,198
-------- -------- -------- -------- -------- --------
Total 3,756 3,667 3,642 3,563 3,535 3,608
======== ======== ======== ======== ======== ========
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
----------------- -------- -------- ---------------------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 10% $ 4,331 $ 4,704 9%
Adjusted Operating Expenses (6%) 1,735 1,492 (14%)
Adjusted Provision for Credit Losses 28% 1,197 1,500 25%
-------- --------
Core Income Before Taxes 14% 1,399 1,712 22%
Income Taxes 12% 511 611 20%
-------- --------
CORE INCOME 15% $ 888 $ 1,101 24%
======== ========
Average Assets (in billions of dollars) 8% $ 83 $ 89 7%
======== ========
Return on Assets 2.16% 2.49%
======== ========
KEY INDICATORS
AVERAGE LOANS (IN BILLIONS OF DOLLARS):
Real estate secured loans 7% $ 43.3 $ 45.9 6%
Personal loans 9% 18.8 19.9 6%
Auto 39% 4.1 5.9 44%
Sales finance and other 3% 3.5 3.3 (6%)
-------- --------
Total 9% $ 69.7 $ 75.0 8%
======== ========
AVERAGE LOANS (IN BILLIONS OF DOLLARS):
North America 7% $ 56.6 $ 60.3 7%
International 19% 13.1 14.7 12%
-------- --------
Total 9% $ 69.7 $ 75.0 8%
======== ========
AVERAGE YIELD
North America
International
Total
AVERAGE NET INTEREST MARGIN
North America
International
Total
NET CREDIT LOSS RATIO
LOANS 90+ DAYS PAST DUE:
In millions of dollars 10%
%
NUMBER OF OFFICES:
North America (3%)
International 1%
Total (2%)
</Table>
Reclassified to conform to the current period's presentation.
PAGE 9
<Page>
[CITIGROUP LOGO]
GLOBAL CONSUMER
CONSUMER FINANCE
GEOGRAPHIC DISTRIBUTION
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
-------- -------- -------- -------- -------- --------
GEOGRAPHIC DISTRIBUTION
NORTH AMERICA
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 1,366 $ 1,388 $ 1,476 $ 1,457 $ 1,539 $ 1,537
Adjusted Operating Expenses 593 523 515 470 503 475
Adjusted Provision for Benefits, Claims, and Credit Losses 415 419 439 504 509 525
-------- -------- -------- -------- -------- --------
Core Income Before Taxes 358 446 522 483 527 537
Income Taxes 134 164 195 181 193 196
-------- -------- -------- -------- -------- --------
CORE INCOME $ 224 $ 282 $ 327 $ 302 $ 334 $ 341
======== ======== ======== ======== ======== ========
Average Assets (in billions of dollars) $ 65 $ 67 $ 68 $ 68 $ 69 $ 70
======== ======== ======== ======== ======== ========
Return on Assets 1.40% 1.69% 1.91% 1.76% 1.96% 1.95%
======== ======== ======== ======== ======== ========
INTERNATIONAL
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 787 $ 790 $ 824 $ 780 $ 759 $ 869
Adjusted Operating Expenses 329 290 297 285 225 289
Provision for Benefits, Claims, and Credit Losses 188 175 184 205 228 238
-------- -------- -------- -------- -------- --------
Core Income Before Taxes 270 325 343 290 306 342
Income Taxes 97 116 121 104 104 118
-------- -------- -------- -------- -------- --------
CORE INCOME $ 173 $ 209 $ 222 $ 186 $ 202 $ 224
======== ======== ======== ======== ======== ========
Average Assets (in billions of dollars) $ 17 $ 16 $ 17 $ 18 $ 18 $ 20
======== ======== ======== ======== ======== ========
Return on Assets 4.13% 5.24% 5.18% 4.10% 4.55% 4.49%
======== ======== ======== ======== ======== ========
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
----------------- -------- -------- ---------------------
GEOGRAPHIC DISTRIBUTION
NORTH AMERICA
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 11% $ 2,754 $ 3,076 12%
Adjusted Operating Expenses (9%) 1,116 978 (12%)
Adjusted Provision for Benefits, Claims, and
Credit Losses 25% 834 1,034 24%
-------- --------
Core Income Before Taxes 20% 804 1,064 32%
Income Taxes 20% 298 389 31%
-------- --------
CORE INCOME 21% $ 506 $ 675 33%
======== ========
Average Assets (in billions of dollars) 4% $ 66 $ 70 6%
======== ========
Return on Assets 1.55% 1.94%
======== ========
INTERNATIONAL
TOTAL REVENUES, NET OF INTEREST EXPENSE 10% $ 1,577 $ 1,628 3%
Adjusted Operating Expenses - 619 514 (17%)
Provision for Benefits, Claims, and Credit Losses 36% 363 466 28%
-------- --------
Core Income Before Taxes 5% 595 648 9%
Income Taxes 2% 213 222 4%
-------- --------
CORE INCOME 7% $ 382 $ 426 12%
======== ========
Average Assets (in billions of dollars) 25% $ 17 $ 19 12%
======== ========
Return on Assets 4.53% 4.52%
======== ========
</Table>
Reclassified to conform to the current period's presentation.
PAGE 10
<Page>
[CITIGROUP LOGO]
GLOBAL CONSUMER
CONSUMER FINANCE
CITIFINANCIAL - SUPPLEMENTAL DATA (1)
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
-------- -------- -------- -------- -------- --------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 1,330 $ 1,346 $ 1,430 $ 1,405 $ 1,479 $ 1,476
Adjusted Operating Expenses 569 502 492 443 475 447
Adjusted Provision for Benefits, Claims, and Credit Losses 408 412 431 495 500 516
-------- -------- -------- -------- -------- --------
Core Income Before Taxes 353 432 507 467 504 513
Income Taxes 133 157 190 174 184 187
-------- -------- -------- -------- -------- --------
CORE INCOME $ 220 $ 275 $ 317 $ 293 $ 320 $ 326
======== ======== ======== ======== ======== ========
Average Assets (in billions of dollars) $ 64 $ 66 $ 67 $ 67 $ 68 $ 69
======== ======== ======== ======== ======== ========
Return on Assets 1.39% 1.67% 1.88% 1.73% 1.91% 1.90%
======== ======== ======== ======== ======== ========
KEY INDICATORS:
AVERAGE NET RECEIVABLES (IN BILLIONS OF DOLLARS):
Real estate secured loans - Other $ 34.5 $ 34.2 $ 34.1 $ 33.9 $ 33.3 $ 33.0
Real estate secured loans - PFS Sourced 5.4 6.1 6.8 7.5 8.2 9.1
Personal loans 9.7 9.7 9.6 9.6 9.6 9.5
Auto 3.5 4.1 4.6 5.1 5.4 5.8
Sales finance and other 2.6 2.4 2.6 2.6 2.7 2.9
-------- -------- -------- -------- -------- --------
Total $ 55.7 $ 56.5 $ 57.7 $ 58.7 $ 59.2 $ 60.3
======== ======== ======== ======== ======== ========
Number of offices 2,430 2,336 2,320 2,221 2,199 2,199
Average yield 13.87% 13.65% 13.30% 12.95% 13.07% 12.76%
Average net interest margin 7.76% 7.98% 8.09% 8.13% 8.41% 8.22%
Net credit loss ratio 2.50% 2.46% 2.45% 3.06% 2.97% 3.07%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 1,580 $ 1,751 $ 1,898 $ 1,991 $ 1,969 $ 1,816
% 2.82% 3.07% 3.25% 3.38% 3.30% 2.98%
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
----------------- -------- -------- ---------------------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 10% $ 2,676 $ 2,955 10%
Adjusted Operating Expenses (11%) 1,071 922 (14%)
Adjusted Provision for Benefits, Claims, and Credit Losses 25% 820 1,016 24%
-------- --------
Core Income Before Taxes 19% 785 1,017 30%
Income Taxes 19% 290 371 28%
-------- --------
CORE INCOME 19% $ 495 $ 646 31%
======== ========
Average Assets (in billions of dollars) 5% $ 65 $ 69 6%
======== ========
Return on Assets 1.54% 1.89%
======== ========
KEY INDICATORS:
AVERAGE NET RECEIVABLES (IN BILLIONS OF DOLLARS):
Real estate secured loans - Other (4%) $ 34.3 $ 33.1 (3%)
Real estate secured loans - PFS Sourced 49% 5.8 8.7 50%
Personal loans (2%) 9.7 9.6 (1%)
Auto 41% 3.8 5.6 47%
Sales finance and other 21% 2.5 2.8 12%
-------- --------
Total 7% $ 56.1 $ 59.8 7%
======== ========
Number of offices (6%)
Average yield 13.87% 12.91%
Average net interest margin 7.94% 8.31%
Net credit loss ratio
LOANS 90+ DAYS PAST DUE:
In millions of dollars 4%
%
</Table>
(1) CitiFinancial is included within the North American Region of Consumer
Finance and excludes Mexico and Puerto Rico.
Reclassified to conform to the current period's presentation.
PAGE 11
<Page>
[CITIGROUP LOGO]
GLOBAL CONSUMER
RETAIL BANKING
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
-------- -------- -------- -------- -------- --------
Total Revenues, Net of Interest Expense $ 2,490 $ 2,568 $ 3,021 $ 3,159 $ 3,335 $ 3,207
Adjusted Operating Expenses 1,373 1,397 1,594 1,741 1,773 1,761
Provision for Benefits, Claims and Credit Losses 237 230 291 303 435 295
-------- -------- -------- -------- -------- --------
Core Income Before Taxes and Minority Interest 880 941 1,136 1,115 1,127 1,151
Income Taxes 312 340 403 386 391 394
Minority Interest, net of tax 5 7 6 9 10 9
-------- -------- -------- -------- -------- --------
CORE INCOME $ 563 $ 594 $ 727 $ 720 $ 726 $ 748
======== ======== ======== ======== ======== ========
Average Assets (in billions of dollars) $ 119 $ 119 $ 152 $ 167 $ 173 $ 171
======== ======== ======== ======== ======== ========
Return on Assets 1.92% 2.00% 1.90% 1.71% 1.70% 1.75%
======== ======== ======== ======== ======== ========
KEY INDICATORS:
(in billions of dollars)
OWNED AND SERVICED AVERAGE LOANS:
North America $ 53.8 $ 54.7 $ 63.8 $ 66.8 $ 68.9 $ 68.8
International 37.9 37.1 37.8 37.7 36.7 38.1
-------- -------- -------- -------- -------- --------
Average Loans (1) $ 91.7 $ 91.8 $ 101.6 $ 104.5 $ 105.6 $ 106.9
======== ======== ======== ======== ======== ========
AVERAGE CUSTOMER DEPOSITS:
North America $ 53.0 $ 53.8 $ 80.7 $ 85.5 $ 89.4 $ 87.4
International 78.6 78.4 79.3 78.6 77.5 79.8
-------- -------- -------- -------- -------- --------
Total $ 131.6 $ 132.2 $ 160.0 $ 164.1 $ 166.9 $ 167.2
======== ======== ======== ======== ======== ========
EOP ACCOUNTS (IN MILLIONS)
North America 11.8 11.9 22.3 21.8 21.9 22.5
International 18.3 18.5 18.8 18.9 19.0 19.3
-------- -------- -------- -------- -------- --------
Total 30.1 30.4 41.1 40.7 40.9 41.8
======== ======== ======== ======== ======== ========
BRANCHES
North America 577 576 2,019 1,945 1,950 1,888
International 897 906 907 913 909 908
-------- -------- -------- -------- -------- --------
Total 1,474 1,482 2,926 2,858 2,859 2,796
======== ======== ======== ======== ======== ========
ATM-ONLY LOCATIONS
North America 153 156 162 165 165 179
International 300 320 380 382 392 447
-------- -------- -------- -------- -------- --------
Total 453 476 542 547 557 626
======== ======== ======== ======== ======== ========
PROPRIETARY ATMs
North America 2,331 2,320 6,554 6,574 6,652 6,706
International 2,059 2,101 2,178 2,195 2,197 2,242
-------- -------- -------- -------- -------- --------
Total 4,390 4,421 8,732 8,769 8,849 8,948
======== ======== ======== ======== ======== ========
NET CREDIT LOSS RATIO 0.55% 0.53% 0.72% 0.78% 0.78% 0.80%
LOANS 90+DAYS PAST DUE:
In millions of dollars $ 2,270 $ 2,475 $ 3,316 $ 3,437 $ 3,481 $ 3,561
% 2.48% 2.71% 3.19% 3.30% 3.34% 3.31%
PRIMERICA FINANCIAL SERVICES:
Agents Licensed for Life Insurance 88,907 93,998 93,156 95,679 98,272 101,358
Life Insurance in Force (in billions of dollars) $ 415.4 $ 422.9 $ 427.7 $ 434.8 $ 441.3 $ 452.6
Total Mutual Fund Sales (in millions of dollars) $ 993.8 $ 868.3 $ 776.5 $ 770.2 $ 936.8 $ 964.0
Cash advanced on Loans (in millions of dollars) (2) $ 694.5 $1,091.9 $1,006.1 $1,077.3 $1,253.8 $1,139.8
Variable Annuity Net Written Premiums & Deposits
(in millions of dollars) $ 247.6 $ 237.1 $ 222.1 $ 217.2 $ 224.9 $ 249.5
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
----------------- -------- -------- ---------------------
Total Revenues, Net of Interest Expense 25% $ 5,058 $ 6,542 29%
Adjusted Operating Expenses 26% 2,770 3,534 28%
Provision for Benefits, Claims and Credit Losses 28% 467 730 56%
-------- --------
Core Income Before Taxes and Minority Interest 22% 1,821 2,278 25%
Income Taxes 16% 652 785 20%
Minority Interest, net of tax 29% 12 19 58%
-------- --------
CORE INCOME 26% $ 1,157 $ 1,474 27%
======== ========
Average Assets (in billions of dollars) 44% $ 119 $ 172 45%
======== ========
Return on Assets 1.96% 1.73%
======== ========
KEY INDICATORS:
(in billions of dollars)
OWNED AND SERVICED AVERAGE LOANS:
North America 26% $ 54.3 $ 68.9 27%
International 3% 37.5 37.4 -
-------- --------
Average Loans (1) 16% $ 91.8 $ 106.3 16%
======== ========
AVERAGE CUSTOMER DEPOSITS:
North America 62% $ 53.4 $ 88.4
International 2% 78.5 78.7
-------- --------
Total 26% $ 131.9 $ 167.1
======== ========
EOP ACCOUNTS (IN MILLIONS)
North America 89%
International 4%
Total 38%
BRANCHES
North America NM
International -
Total 89%
ATM-ONLY LOCATIONS
North America 15%
International 40%
Total 32%
PROPRIETARY ATMS
North America NM
International 7%
Total NM
NET CREDIT LOSS RATIO
LOANS 90+DAYS PAST DUE:
In millions of dollars
%
PRIMERICA FINANCIAL SERVICES:
Agents Licensed for Life Insurance 8%
Life Insurance in Force (in billions of dollars) 7%
Total Mutual Fund Sales (in millions of dollars) 11%
Cash advanced on Loans (in millions of dollars) (2) 4%
Variable Annuity Net Written Premiums & Deposits
(in millions of dollars) 5%
</Table>
(1) Includes loans held for sale
(2) Represents loan products marketed by PFS; the receivables are primarily
reflected in the assets of Consumer Finance.
NM Not meaningful
PAGE 12
<Page>
[CITIGROUP LOGO]
GLOBAL CONSUMER
RETAIL BANKING
GEOGRAPHIC AND BUSINESS DISTRIBUTION
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
-------- -------- -------- -------- -------- --------
REVENUES:
NORTH AMERICA:
Citibanking North America $ 637 $ 692 $ 740 $ 762 $ 796 $ 805
Consumer Assets 239 265 257 261 299 311
Primerica Financial Services 490 497 493 499 512 522
Mexico 24 28 399 554 565 577
-------- -------- -------- -------- -------- --------
TOTAL NORTH AMERICA RETAIL BANKING $ 1,390 $ 1,482 $ 1,889 $ 2,076 $ 2,172 $ 2,215
-------- -------- -------- -------- -------- --------
INTERNATIONAL:
Western Europe $ 389 $ 373 $ 397 $ 406 $ 416 $ 457
Japan 106 109 114 106 104 113
Asia (excluding Japan) 319 319 323 336 327 327
Latin America 205 200 210 148 224 (5)
CEEMEA 81 85 88 87 92 100
-------- -------- -------- -------- -------- --------
TOTAL INTERNATIONAL RETAIL BANKING 1,100 1,086 1,132 1,083 1,163 992
-------- -------- -------- -------- -------- --------
TOTAL RETAIL BANKING $ 2,490 $ 2,568 $ 3,021 $ 3,159 $ 3,335 $ 3,207
======== ======== ======== ======== ======== ========
CORE INCOME:
NORTH AMERICA:
Citibanking North America $ 152 $ 152 $ 155 $ 180 $ 192 $ 201
Consumer Assets 75 86 90 92 93 106
Primerica Financial Services 125 128 125 134 128 137
Mexico (19) (22) 85 53 90 100
-------- -------- -------- -------- -------- --------
TOTAL NORTH AMERICA RETAIL BANKING $ 333 $ 344 $ 455 $ 459 $ 503 $ 544
-------- -------- -------- -------- -------- --------
INTERNATIONAL:
Western Europe $ 70 $ 69 $ 78 $ 88 $ 93 $ 106
Japan 31 34 38 35 33 37
Asia (excluding Japan) 99 104 105 112 104 108
Latin America 22 30 35 9 (19) (60)
CEEMEA 8 13 16 17 12 13
-------- -------- -------- -------- -------- --------
TOTAL INTERNATIONAL RETAIL BANKING 230 250 272 261 223 204
-------- -------- -------- -------- -------- --------
TOTAL RETAIL BANKING $ 563 $ 594 $ 727 $ 720 $ 726 $ 748
======== ======== ======== ======== ======== ========
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
----------------- -------- -------- ---------------------
REVENUES:
NORTH AMERICA:
Citibanking North America 16% $ 1,329 $ 1,601 20%
Consumer Assets 17% 504 610 21%
Primerica Financial Services 5% 987 1,034 5%
Mexico NM 52 1,142 NM
-------- --------
TOTAL NORTH AMERICA RETAIL BANKING 49% $ 2,872 $ 4,387 53%
-------- --------
INTERNATIONAL:
Western Europe 23% $ 762 $ 873 15%
Japan 4% 215 217 1%
Asia (excluding Japan) 3% 638 654 3%
Latin America NM 405 219 (46%)
CEEMEA 18% 166 192 16%
-------- --------
TOTAL INTERNATIONAL RETAIL BANKING (9%) 2,186 2,155 (1%)
-------- --------
TOTAL RETAIL BANKING 25% $ 5,058 $ 6,542 29%
======== ========
CORE INCOME:
NORTH AMERICA:
Citibanking North America 32% $ 304 $ 393 29%
Consumer Assets 23% 161 199 24%
Primerica Financial Services 7% 253 265 5%
Mexico NM (41) 190 NM
-------- --------
TOTAL NORTH AMERICA RETAIL BANKING 58% $ 677 $ 1,047 55%
-------- --------
INTERNATIONAL:
Western Europe 54% $ 139 $ 199 43%
Japan 9% 65 70 8%
Asia (excluding Japan) 4% 203 212 4%
Latin America NM 52 (79) NM
CEEMEA - 21 25 19%
-------- --------
TOTAL INTERNATIONAL RETAIL BANKING (18%) 480 427 (11%)
-------- --------
TOTAL RETAIL BANKING 26% $ 1,157 $ 1,474 27%
======== ========
</Table>
NM Not meaningful
PAGE 13
<Page>
[CITIGROUP LOGO]
GLOBAL CORPORATE AND INVESTMENT BANK
INCOME STATEMENT
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q
2001 2001 2001 2001 2002
---------- ---------- ---------- ---------- ----------
REVENUES:
Commissions and Fees $ 1,402 $ 1,320 $ 1,218 $ 1,260 $ 1,363
Asset Management and Administration Fees 704 682 695 636 675
Investment Banking 1,239 1,138 929 1,210 1,043
Principal Transactions 2,077 1,268 812 684 1,360
Other Income 290 139 445 138 (8)
---------- ---------- ---------- ---------- ----------
Total Non-Interest Revenues 5,712 4,547 4,099 3,928 4,433
Net Interest and Dividends 1,846 1,987 2,015 2,612 2,411
---------- ---------- ---------- ---------- ----------
Total Revenues, Net of Interest Expense 7,558 6,534 6,114 6,540 6,844
---------- ---------- ---------- ---------- ----------
Non-Interest Expenses:
Compensation and Benefits 3,333 2,748 2,518 2,754 3,014
Other Operating and Administrative Expenses 1,630 1,339 1,350 1,419 1,180
---------- ---------- ---------- ---------- ----------
Total Non-Interest Expenses 4,963 4,087 3,868 4,173 4,194
---------- ---------- ---------- ---------- ----------
Provision for Credit Losses 277 288 217 682 680
---------- ---------- ---------- ---------- ----------
Core Income Before Taxes and Minority Interest 2,318 2,159 2,029 1,685 1,970
Income Taxes and Minority Interest, Net of Tax 842 769 734 591 684
---------- ---------- ---------- ---------- ----------
CORE INCOME $ 1,476 $ 1,390 $ 1,295 $ 1,094 $ 1,286
========== ========== ========== ========== ==========
Pre-tax Profit Margin 30.7% 33.0% 33.2% 25.8% 28.8%
Non-Compensation Expenses as a Percent of
Net Revenues 21.6% 20.5% 22.1% 21.7% 17.2%
Compensation and Benefits Expenses as a Percent of
Net Revenues 44.1% 42.1% 41.2% 42.1% 44.0%
<Caption>
2Q 2002 VS. YTD YTD
2Q 2Q 2001 VS. INCREASE/ 2Q 2Q
2002 (DECREASE) 2001 2002
---------- ---------------------- ---------- ----------
REVENUES:
Commissions and Fees $ 1,394 6% $ 2,722 $ 2,757
Asset Management and Administration Fees 699 2% 1,386 1,374
Investment Banking 1,117 (2%) 2,377 2,160
Principal Transactions 1,134 (11%) 3,345 2,494
Other Income 141 1% 429 133
---------- ---------- ----------
Total Non-Interest Revenues 4,485 (1%) 10,259 8,918
Net Interest and Dividends 2,382 20% 3,833 4,793
---------- ---------- ----------
Total Revenues, Net of Interest Expense 6,867 5% 14,092 13,711
---------- ---------- ----------
Non-Interest Expenses:
Compensation and Benefits 2,869 4% 6,081 5,883
Other Operating and Administrative Expenses 1,319 (1%) 2,969 2,499
---------- ---------- ----------
Total Non-Interest Expenses 4,188 2% 9,050 8,382
---------- ---------- ----------
Provision for Credit Losses 460 60% 565 1,140
---------- ---------- ----------
Core Income Before Taxes and Minority Interest 2,219 3% 4,477 4,189
Income Taxes and Minority Interest, Net of Tax 774 1% 1,611 1,458
---------- ---------- ----------
CORE INCOME $ 1,445 4% $ 2,866 $ 2,731
========== ========== ==========
Pre-tax Profit Margin 32.3% 31.8% 30.6%
Non-Compensation Expenses as a Percent of
Net Revenues 19.2% 21.1% 18.2%
Compensation and Benefits Expenses as a Percent of
Net Revenues 41.8% 43.2% 42.9%
<Caption>
YTD 2Q 2002 VS.
YTD 2Q 2001 INCREASE/
(DECREASE)
----------------------
REVENUES:
Commissions and Fees 1%
Asset Management and Administration Fees (1%)
Investment Banking (9%)
Principal Transactions (25%)
Other Income (69%)
Total Non-Interest Revenues (13%)
Net Interest and Dividends 25%
Total Revenues, Net of Interest Expense (3%)
Non-Interest Expenses:
Compensation and Benefits (3%)
Other Operating and Administrative Expenses (16%)
Total Non-Interest Expenses (7%)
Provision for Credit Losses NM
Core Income Before Taxes and Minority Interest (6%)
Income Taxes and Minority Interest, Net of Tax (9%)
CORE INCOME (5%)
Pre-tax Profit Margin
Non-Compensation Expenses as a Percent of
Net Revenues
Compensation and Benefits Expenses as a Percent of
Net Revenues
</Table>
NM Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 14
<Page>
[CITIGROUP LOGO]
GLOBAL CORPORATE AND INVESTMENT BANK
REVENUE DETAILS
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q
2001 2001 2001 2001 2002
---------- ---------- ---------- ---------- -----------
INVESTMENT BANKING REVENUE:
Underwriting $ 657 $ 656 $ 522 $ 587 $ 691
Advisory and Other Fees 582 482 407 623 352
---------- ---------- ---------- ---------- ----------
Total Investment Banking Revenues $ 1,239 $ 1,138 $ 929 $ 1,210 $ 1,043
========== ========== ========== ========== ==========
TRADING RELATED REVENUE BY PRODUCT
Fixed Income $ 1,299 $ 969 $ 800 $ 1,016 $ 1,398
Equities 472 214 101 95 147
Foreign Exchange 365 399 295 458 467
All Other 64 47 38 48 77
---------- ---------- ---------- ---------- ----------
Total Trading Related Revenue $ 2,200 $ 1,629 $ 1,234 $ 1,617 $ 2,089
========== ========== ========== ========== ==========
TRADING RELATED REVENUE BY INCOME STATEMENT LINE
Principal Transactions $ 2,077 $ 1,268 $ 812 $ 684 $ 1,360
Net Interest Revenue 123 361 422 933 729
---------- ---------- ---------- ---------- ----------
Total Trading Related Revenue $ 2,200 $ 1,629 $ 1,234 $ 1,617 $ 2,089
========== ========== ========== ========== ==========
<Caption>
2Q 2002 VS. YTD YTD
2Q 2Q 2001 VS. INCREASE/ 2Q 2Q
2002 (DECREASE) 2001 2002
---------- --------------------- ---------- ----------
INVESTMENT BANKING REVENUE:
Underwriting $ 667 2% $ 1,313 $ 1,358
Advisory and Other Fees 450 (7%) 1,064 802
---------- ---------- ----------
Total Investment Banking Revenues $ 1,117 (2%) $ 2,377 $ 2,160
========== ========== ==========
TRADING RELATED REVENUE BY PRODUCT
Fixed Income $ 1,157 19% $ 2,268 $ 2,555
Equities 180 (16%) 686 327
Foreign Exchange 536 34% 764 1,003
All Other 53 13% 111 130
Total Trading Related Revenue $ 1,926 18% $ 3,829 $ 4,015
TRADING RELATED REVENUE BY INCOME STATEMENT LINE
Principal Transactions $ 1,134 (11%) $ 3,345 $ 2,494
Net Interest Revenue 792 NM 484 1,521
---------- ---------- ----------
Total Trading Related Revenue $ 1,926 18% $ 3,829 $ 4,015
========== ========== ==========
<Caption>
YTD 2Q 2002 VS.
YTD 2Q 2001 INCREASE/
(DECREASE)
---------------------
INVESTMENT BANKING REVENUE:
Underwriting 3%
Advisory and Other Fees (25%)
Total Investment Banking Revenues (9%)
TRADING RELATED REVENUE BY PRODUCT
Fixed Income 13%
Equities (52%)
Foreign Exchange 31%
All Other 17%
Total Trading Related Revenue 5%
TRADING RELATED REVENUE BY INCOME STATEMENT LINE
Principal Transactions (25%)
Net Interest Revenue NM
Total Trading Related Revenue 5%
</Table>
NM Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 15
<Page>
[CITIGROUP LOGO]
GLOBAL CORPORATE AND INVESTMENT BANK
CAPITAL MARKETS AND BANKING
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q
2001 2001 2001 2001 2002
----------- ---------- ---------- ---------- -----------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 5,172 $ 4,153 $ 3,868 $ 4,299 $ 4,631
Adjusted Operating Expenses 2,984 2,227 2,089 2,441 2,435
Provision for Credit Losses 270 286 212 671 611
----------- ---------- ---------- ---------- -----------
Core Income Before Taxes 1,918 1,640 1,567 1,187 1,585
Income Taxes 717 607 561 419 556
----------- ---------- ---------- ---------- -----------
CORE INCOME $ 1,201 $ 1,033 $ 1,006 $ 768 $ 1,029
=========== ========== ========== ========== ===========
INVESTMENT BANKING
UNDERWRITING (FULL CREDIT TO BOOK MANAGER):
DEBT AND EQUITY:
Global Volume (1) $ 130,991 $ 119,208 $ 95,719 $ 150,678 $ 135,426
Global Market Share 12.2% 11.0% 10.8% 14.2% 11.6%
Rank 2 2 1 1 1
U.S. Volume (2) $ 99,735 $ 94,985 $ 80,201 $ 127,913 $ 112,515
U.S. Market Share 14.1% 12.5% 11.9% 16.6% 13.6%
Rank 2 2 1 1 1
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- --------- --------- ---------------------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 4,509 9% $ 9,325 $ 9,140 (2%)
Adjusted Operating Expenses 2,400 8% 5,211 4,835 (7%)
Provision for Credit Losses 455 59% 556 1,066 92%
---------- --------- ---------
Core Income Before Taxes 1,654 1% 3,558 3,239 (9%)
Income Taxes 584 (4%) 1,324 1,140 (14%)
---------- --------- ---------
CORE INCOME $ 1,070 4% $ 2,234 $ 2,099 (6%)
========== ========= =========
INVESTMENT BANKING
UNDERWRITING (FULL CREDIT TO BOOK MANAGER):
DEBT AND EQUITY:
Global Volume (1) $ 108,851 (9%) $ 250,199 $ 244,277 (2%)
Global Market Share 10.6% 11.6% 11.1%
Rank 1 2 1
U.S. Volume (2) $ 82,890 (13%) $ 194,720 $ 195,405 -
U.S. Market Share 11.8% 13.3% 12.7%
Rank 1 2 1
</Table>
(1) 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.
(2) 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.
Reclassified to conform to the current period's presentation.
PAGE 16
<Page>
[CITIGROUP LOGO]
GLOBAL CORPORATE AND INVESTMENT BANK
PRIVATE CLIENT
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
----------- ---------- ---------- ----------- ---------- ----------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 1,549 $ 1,508 $ 1,450 $ 1,433 $ 1,477 $ 1,523
Adjusted Operating Expenses 1,235 1,179 1,157 1,130 1,165 1,198
Provision for Credit Losses - (1) 3 2 - 2
----------- ---------- ---------- ----------- ---------- ----------
Core Income Before Taxes 314 330 290 301 312 323
Income Taxes 118 124 108 112 115 119
----------- ---------- ---------- ----------- ---------- ----------
CORE INCOME $ 196 $ 206 $ 182 $ 189 $ 197 $ 204
=========== ========== ========== =========== ========== ==========
PRIVATE CLIENT
Financial Consultants 12,675 12,802 12,963 12,927 12,767 12,808
Annualized Revenue per FC (000) $ 501 $ 473 $ 450 $ 440 $ 473 $ 473
Branch offices 530 530 538 536 536 538
SALOMON SMITH BARNEY
CLIENT ASSETS (IN BILLIONS OF DOLLARS)
ASSETS UNDER FEE-BASED MANAGEMENT
Consulting Group and Internally Managed Accounts $ 134.4 $ 149.3 $ 134.9 $ 150.2 $ 154.3 $ 137.4
Financial Consultant Managed Accounts 51.9 57.0 49.4 54.9 55.2 49.5
----------- ---------- ---------- ----------- ---------- ----------
TOTAL (1) $ 186.3 $ 206.3 $ 184.3 $ 205.1 $ 209.5 $ 186.9
=========== ========== ========== =========== ========== ==========
Total Client Assets $ 911 $ 981 $ 905 $ 977 $ 994 $ 939
U.S. Bank Deposit Program $ 17.7 $ 25.4 $ 30.9 $ 35.6 $ 37.5 $ 37.2
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
----------------- ---------- ---------- ---------------------
TOTAL REVENUES, NET OF INTEREST EXPENSE 1% $ 3,057 $ 3,000 (2%)
Adjusted Operating Expenses 2% 2,414 2,363 (2%)
Provision for Credit Losses NM (1) 2 NM
---------- ----------
Core Income Before Taxes (2%) 644 635 (1%)
Income Taxes (4%) 242 234 (3%)
---------- ----------
CORE INCOME (1%) $ 402 $ 401 -
========== ==========
Private Client
Financial Consultants -
Annualized Revenue per FC (000) -
Branch offices 2%
SALOMON SMITH BARNEY
CLIENT ASSETS (IN BILLIONS OF DOLLARS)
ASSETS UNDER FEE-BASED MANAGEMENT
Consulting Group and Internally Managed Accounts (8%)
Financial Consultant Managed Accounts (13%)
TOTAL (1) (9%)
Total Client Assets (4%)
U.S. Bank Deposit Program 46%
</Table>
(1) Includes some assets jointly managed with Citigroup Asset Management.
NM Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 17
<Page>
[CITIGROUP LOGO]
GLOBAL CORPORATE AND INVESTMENT BANK
TRANSACTION SERVICES
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 902 $ 891 $ 856 $ 867 $ 835 $ 939
Adjusted Operating Expenses 749 698 697 684 642 626
Provision for Credit Losses 7 3 2 9 69 3
---------- ---------- ---------- ---------- ---------- ----------
Core Income Before Taxes 146 190 157 174 124 310
Income Taxes 55 71 55 59 41 104
Minority Interest, net of tax - 3 2 2 1 2
---------- ---------- ---------- ---------- ---------- ----------
CORE INCOME $ 91 $ 116 $ 100 $ 113 $ 82 $ 204
========== ========== ========== ========== ========== ==========
LIABILITY BALANCES (AVERAGE IN BILLIONS) $ 74 $ 75 $ 79 $ 80 $ 82 $ 84
ASSETS UNDER CUSTODY (EOP IN TRILLIONS) $ 4.2 $ 4.5 $ 4.6 $ 4.8 $ 5.2 $ 5.4
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
----------------- ---------- ---------- ---------------------
TOTAL REVENUES, NET OF INTEREST EXPENSE 5% $ 1,793 $ 1,774 (1%)
Adjusted Operating Expenses (10%) 1,447 1,268 (12%)
Provision for Credit Losses - 10 72 NM
---------- ----------
Core Income Before Taxes 63% 336 434 29%
Income Taxes 46% 126 145 15%
Minority Interest, net of tax (33%) 3 3 -
---------- ----------
CORE INCOME 76% $ 207 $ 286 38%
========== ==========
LIABILITY BALANCES (AVERAGE IN BILLIONS) 12%
ASSETS UNDER CUSTODY (EOP IN TRILLIONS) 20%
</Table>
NM Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 18
<Page>
CITIGROUP LOGO
GLOBAL INVESTMENT MANAGEMENT
LIFE INSURANCE AND ANNUITIES
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
--------- --------- --------- --------- ---------- ---------
TOTAL REVENUES, NET OF INTEREST EXPENSE* $ 1,170 $ 1,014 $ 972 $ 1,223 $ 1,002 $ 1,216
Total Operating Expenses 97 94 91 112 92 112
Provision for Benefits and Claims 752 571 609 813 616 735
--------- --------- --------- --------- ---------- ---------
Core Income Before Taxes and Minority Interest 321 349 272 298 294 369
Income Taxes 106 113 84 91 90 114
Minority Interest, net of tax - - 3 7 - -
--------- --------- --------- --------- ---------- ---------
CORE INCOME $ 215 $ 236 $ 185 $ 200 $ 204 $ 255
========= ========= ========= ========= ========== =========
Travelers Life & Annuity - Core Income $ 209 $ 230 $ 178 $ 201 $ 200 $ 206
International Insurance Manufacturing - Core Income $ 6 $ 6 $ 7 $ (1) $ 4 $ 49
PRE-TAX CONTRIBUTION BY SOURCE:
Individual annuities $ 119 $ 121 $ 94 $ 99 $ 123 $ 112
Group annuities 111 128 95 105 98 96
Life and long-term care insurance 61 73 51 75 51 74
Other (includes run-off and return on excess capital) 21 19 17 16 17 17
--------- --------- --------- --------- ---------- ---------
Total Travelers Life & Annuity 312 341 257 295 289 299
Total International Insurance Manufacturing 9 8 15 3 5 70
--------- --------- --------- --------- ---------- ---------
Total Life Insurance and Annuities $ 321 $ 349 $ 272 $ 298 $ 294 $ 369
========= ========= ========= ========= ========== =========
TRAVELERS LIFE AND ANNUITY:
INDIVIDUAL ANNUITIES:
Net written premiums and deposits:
Fixed $ 427 $ 572 $ 464 $ 657 $ 614 $ 603
Variable 1,099 1,068 952 881 898 916
Individual Payout 19 15 14 11 14 12
--------- --------- --------- --------- ---------- ---------
Total $ 1,545 $ 1,655 $ 1,430 $ 1,549 $ 1,526 $ 1,531
========= ========= ========= ========= ========== =========
Policyholder account balances and benefit reserves: (1)
Fixed $ 8,272 $ 8,609 $ 8,908 $ 9,289 $ 9,681 $ 10,139
Variable 18,948 20,438 17,952 20,117 20,381 18,423
Individual Payout 632 632 630 626 622 618
--------- --------- --------- --------- ---------- ---------
Total $ 27,852 $ 29,679 $ 27,490 $ 30,032 $ 30,684 $ 29,180
========= ========= ========= ========= ========== =========
GROUP ANNUITIES:
Net written premiums and deposits (2) $ 2,502 $ 1,397 $ 1,717 $ 1,452 $ 1,525 $ 2,350
Policyholder account balances and benefit reserves: (1)
GIC's and other investment contracts $ 13,732 $ 14,091 $ 14,795 $ 15,345 $ 15,563 $ 16,560
Payout group annuities 5,141 5,259 5,360 5,647 5,740 5,963
--------- --------- --------- --------- ---------- ---------
Total $ 18,873 $ 19,350 $ 20,155 $ 20,992 $ 21,303 $ 22,523
========= ========= ========= ========= ========== =========
INDIVIDUAL LIFE INSURANCE:
Net written premiums and deposits:
Direct periodic premiums and deposits $ 187 $ 142 $ 126 $ 197 $ 233 $ 177
Single premium deposits 47 48 36 77 76 72
Reinsurance (22) (24) (25) (25) (26) (28)
--------- --------- --------- --------- ---------- ---------
Total $ 212 $ 166 $ 137 $ 249 $ 283 $ 221
========= ========= ========= ========= ========== =========
Policyholder account balances and benefit reserves $ 3,085 $ 3,193 $ 3,175 $ 3,401 $ 3,592 $ 3,643
Life insurance in force (in billions, face amt.) $ 69.4 $ 71.0 $ 72.5 $ 75.0 $ 77.8 $ 79.6
Life insurance issued (in billions, face amt.) $ 3.8 $ 2.9 $ 2.9 $ 4.2 $ 4.5 $ 4.0
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
----------------- ------------ --------- ---------------------
TOTAL REVENUES, NET OF INTEREST EXPENSE* 20% $ 2,184 $ 2,218 2%
Total Operating Expenses 19% 191 204 7%
Provision for Benefits and Claims 29% 1,323 1,351 2%
------------ ---------
Core Income Before Taxes and Minority Interest 6% 670 663 (1%)
Income Taxes 1% 219 204 (7%)
Minority Interest, net of tax - - - -
------------ ---------
CORE INCOME 8% $ 451 $ 459 2%
============ =========
Travelers Life & Annuity - Core Income (10)% $ 439 $ 406 (8%)
International Insurance Manufacturing - Core Income NM $ 12 $ 53 NM
PRE-TAX CONTRIBUTION BY SOURCE:
Individual annuities (7)% $ 240 $ 235 (2%)
Group annuities (25)% 239 194 (19%)
Life and long-term care insurance 1% 134 125 (7%)
Other (includes run-off and return on excess capital) (11)% 40 34 (15%)
------------ ---------
Total Travelers Life & Annuity (12)% 653 588 (10%)
Total International Insurance Manufacturing NM 17 75 NM
------------ ---------
Total Life Insurance and Annuities 6% $ 670 $ 663 (1%)
============ =========
TRAVELERS LIFE AND ANNUITY:
INDIVIDUAL ANNUITIES:
Net written premiums and deposits:
Fixed 5% $ 999 $ 1,217 22%
Variable (14)% 2,167 1,814 (16%)
Individual Payout (20)% 34 26 (24%)
------------ ---------
Total (7)% $ 3,200 $ 3,057 (4%)
============ =========
Policyholder account balances and benefit reserves: (1)
Fixed 18%
Variable (10)%
Individual Payout (2)%
Total (2)%
GROUP ANNUITIES:
Net written premiums and deposits (2) 68% $ 3,899 $ 3,875 (1%)
Policyholder account balances and benefit reserves: (1)
GIC's and other investment contracts 18%
Payout group annuities 13%
Total 16%
INDIVIDUAL LIFE INSURANCE:
Net written premiums and deposits:
Direct periodic premiums and deposits 25% $ 329 $ 410 25%
Single premium deposits 50% 95 148 56%
Reinsurance (17)% (46) (54) (17%)
------------ ---------
Total 33% $ 378 $ 504 33%
============ =========
Policyholder account balances and benefit reserves 14%
Life insurance in force (in billions, face amt.) 12%
Life insurance issued (in billions, face amt.) 38% $ 6.7 $ 8.5 27%
</Table>
(1) Includes general account, separate accounts and managed funds.
(2) Excludes deposits of $167.0 and $29.0 for the first and second quarters of
2002, respectively and $28.0, $12.0, $594.0 and $275.0 in the first, second,
third and fourth quarters of 2001, respectively, related to Citigroup plans
previously managed externally.
* Excludes Realized Gain / (Losses) on Investments.
NM Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 19
<Page>
[CITIGROUP LOGO]
GLOBAL INVESTMENT MANAGEMENT
PRIVATE BANKING
(In millions of dollars)
<Table>
<Caption>
2Q 2002 VS. YTD
1Q 2Q 3Q 4Q 1Q 2Q 2Q 2001 INCREASE/ 2Q
2001 2001 2001 2001 2002 2002 (DECREASE) 2001
----- ----- ----- ----- ----- ----- ----------------- -----
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 392 $ 376 $ 366 $ 408 $ 423 $ 427 14% $ 768
Adjusted Operating Expenses 239 230 225 245 254 261 13% 469
Provision for Credit Losses 2 1 4 16 6 - (100%) 3
----- ----- ----- ----- ----- ----- -----
Core Income Before Taxes 151 145 137 147 163 166 14% 296
Income Taxes 56 53 46 53 51 53 - 109
----- ----- ----- ----- ----- ----- -----
CORE INCOME $ 95 $ 92 $ 91 $ 94 $ 112 $ 113 23% $ 187
===== ===== ===== ===== ===== ===== =====
Average Assets (in billions of dollars) $ 25 $ 26 $ 26 $ 26 $ 28 $ 29 12% $ 26
===== ===== ===== ===== ===== ===== =====
Return on Assets 1.54% 1.42% 1.39% 1.43% 1.62% 1.56% 1.45%
===== ===== ===== ===== ===== ===== =====
Client Business Volumes (in billions of dollars) $ 146 $ 151 $ 150 $ 159 $ 166 $ 163 8% $ 151
===== ===== ===== ===== ===== ===== =====
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS):
Proprietary Managed Assets $ 29 $ 28 $ 29 $ 31 $ 31 $ 29 4%
Other Assets under Fee-Based Management 5 7 6 8 9 9 29%
Banking and Fiduciary Deposits 31 31 33 34 35 36 16%
Loans 26 26 27 27 29 30 15%
Other, Principally Custody Accounts 55 59 55 59 62 59 -
----- ----- ----- ----- ----- -----
Total Client Business Volumes $ 146 $ 151 $ 150 $ 159 $ 166 $ 163 8%
===== ===== ===== ===== ===== =====
REVENUES:
Customer Revenues
Net Interest Spread and Recurring
Fee-Based Revenues $ 250 $ 247 $ 253 $ 256 $ 271 $ 269 9% $ 497
Transaction Revenues 99 81 62 94 92 96 19% 180
----- ----- ----- ----- ----- ----- -----
Total Customer Revenues 349 328 315 350 363 365 11% 677
Other Revenues (Principally Allocated Equity
and Treasury Revenues) 43 48 51 58 60 62 29% 91
----- ----- ----- ----- ----- ----- -----
Total Revenues $ 392 $ 376 $ 366 $ 408 $ 423 $ 427 14% $ 768
===== ===== ===== ===== ===== ===== =====
North America $ 153 $ 154 $ 152 $ 164 $ 187 $ 184 19% $ 307
International 239 222 214 244 236 243 9% 461
----- ----- ----- ----- ----- ----- -----
$ 392 $ 376 $ 366 $ 408 $ 423 $ 427 14% $ 768
===== ===== ===== ===== ===== ===== =====
Net Credit Loss Ratio (0.01%) 0.04% 0.03% 0.15% 0.04% 0.00%
<Caption>
YTD YTD 2Q 2002 VS.
2Q YTD 2Q 2001 INCREASE/
2002 (DECREASE)
----- ---------------------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 850 11%
Adjusted Operating Expenses 515 10%
Provision for Credit Losses 6 100%
-----
Core Income Before Taxes 329 11%
Income Taxes 104 (5%)
-----
CORE INCOME $ 225 20%
=====
Average Assets (in billions of dollars) $ 29 12%
=====
Return on Assets 1.56%
=====
Client Business Volumes (in billions of dollars) $ 163 8%
=====
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS):
Proprietary Managed Assets
Other Assets under Fee-Based Management
Banking and Fiduciary Deposits
Loans
Other, Principally Custody Accounts
Total Client Business Volumes
REVENUES:
Customer Revenues
Net Interest Spread and Recurring
Fee-Based Revenues $ 540 9%
Transaction Revenues 188 4%
-----
Total Customer Revenues 728 8%
Other Revenues (Principally Allocated Equity
and Treasury Revenues) 122 34%
-----
TOTAL REVENUES $ 850 11%
=====
North America $ 371 21%
International 479 4%
-----
$ 850 11%
=====
Net Credit Loss Ratio
</Table>
Reclassified to conform to the current period's presentation.
PAGE 20
<Page>
[CITIGROUP LOGO]
GLOBAL INVESTMENT MANAGEMENT
ASSET MANAGEMENT (1)
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
------- ------- ------- ------- ------- -------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 516 $ 491 $ 546 $ 532 $ 519 $ 522
Adjusted Operating Expenses 361 347 373 329 325 317
------- ------- ------- ------- ------- -------
Core income before taxes and minority interest 155 144 173 203 194 205
Income Taxes 63 60 63 67 68 67
Minority Interest, net of tax 1 - 6 11 - 1
------- ------- ------- ------- ------- -------
CORE INCOME $ 91 $ 84 $ 104 $ 125 $ 126 $ 137
======= ======= ======= ======= ======= =======
Pre-tax profit margin 30.0% 29.3% 31.7% 38.2% 37.4% 39.3%
ASSET MANAGEMENT (EXCL. RETIREMENT SERVICES):
Total Revenues, Net of Interest Expense $ 445 $ 420 $ 424 $ 417 $ 435 $ 441
Adjusted Operating Expenses 309 295 291 267 274 280
------- ------- ------- ------- ------- -------
Core income before taxes and minority interest 136 125 133 150 161 161
Income taxes and minority interest, net of tax 54 51 53 58 63 60
------- ------- ------- ------- ------- -------
CORE INCOME $ 82 $ 74 $ 80 $ 92 $ 98 $ 101
======= ======= ======= ======= ======= =======
RETIREMENT SERVICES:
Total Revenues, Net of Interest Expense $ 71 $ 71 $ 122 $ 115 $ 84 $ 81
Adjusted Operating Expenses 52 52 82 62 51 37
------- ------- ------- ------- ------- -------
Core income before taxes and minority interest 19 19 40 53 33 44
Income taxes and minority interest, net of tax 10 9 16 20 5 8
------- ------- ------- ------- ------- -------
CORE INCOME $ 9 $ 10 $ 24 $ 33 $ 28 $ 36
======= ======= ======= ======= ======= =======
NET FLOWS BY BUSINESS (IN BILLIONS OF DOLLARS):
Retail/Private Bank $ 8.7 $ 7.6 $ 7.3 $ 7.2 $ 6.0 $ 3.2
Institutional 6.6 12.5 10.1 5.4 13.9 5.3
------- ------- ------- ------- ------- -------
Net Flows Excluding US Retail Money Markets $ 15.3 $ 20.1 $ 17.4 $ 12.6 $ 19.9 $ 8.5
------- ------- ------- ------- ------- -------
US Retail Money Markets $ (6.5) $ (12.6) $ (2.5) $ (4.6) $ (1.6) $ (4.5)
ASSETS UNDER MANAGEMENT BY BUSINESS (IN BILLIONS OF DOLLARS):
Retail/Private Bank (2) $ 233.6 $ 231.6 $ 223.4 $ 237.2 $ 238.9 $ 220.6
Institutional 116.5 131.0 138.7 142.5 156.6 161.7
Citigroup Alternative Investments 46.2 48.3 48.3 48.1 48.9 50.1
Retirement Services 6.7 7.3 11.3 12.1 9.9 10.1
------- ------- ------- ------- ------- -------
Total assets under management (2) $ 403.0 $ 418.2 $ 421.7 $ 439.9 $ 454.3 $ 442.5
======= ======= ======= ======= ======= =======
ASSETS UNDER MANAGEMENT BY PRODUCT (IN BILLIONS OF DOLLARS):
Equity/Balanced $ 158.4 $ 169.5 $ 151.4 $ 167.2 $ 165.5 $ 151.3
Fixed Income 80.7 83.6 98.6 99.8 106.3 111.7
Money Markets/Liquidity 126.7 125.0 131.5 132.2 140.6 135.2
Citigroup Alternative Investments 37.2 40.1 40.2 40.7 41.9 44.3
------- ------- ------- ------- ------- -------
Total assets under management (2) $ 403.0 $ 418.2 $ 421.7 $ 439.9 $ 454.3 $ 442.5
======= ======= ======= ======= ======= =======
NUMBER OF MORNINGSTAR 4- AND 5-STAR MUTUAL FUND SHARE CLASSES (3)
Equity 12 11 11 10 11 12
Fixed Income 11 5 8 7 10 13
CITISTREET JOINT VENTURE - ASSETS UNDER ADMINISTRATION $ 183.5 $ 181.6 $ 178.8 $ 179.3 $ 181.0 $ 175.8
(IN BLLIONS OF DOLLARS)
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
----------------- ------- ------- ---------------------
TOTAL REVENUES, NET OF INTEREST EXPENSE 6% $ 1,007 $ 1,041 3%
Adjusted Operating Expenses (9%) 708 642 (9%)
------- -------
Core income before taxes and minority interest 42% 299 399 33%
Income Taxes 12% 123 135 10%
Minority Interest, net of tax - 1 1 -
------- -------
CORE INCOME 63% $ 175 $ 263 50%
======= =======
Pre-tax profit margin
ASSET MANAGEMENT (EXCL. RETIREMENT SERVICES):
Total Revenues, Net of Interest Expense 5% $ 865 $ 876 1%
Adjusted Operating Expenses (5%) 604 554 (8%)
------- -------
Core income before taxes and minority interest 29% 261 322 23%
Income taxes and minority interest, net of tax 18% 105 123 17%
------- -------
CORE INCOME 36% $ 156 $ 199 28%
======= =======
RETIREMENT SERVICES:
Total Revenues, Net of Interest Expense 14% $ 142 $ 165 16%
Adjusted Operating Expenses (29%) 104 88 (15%)
------- -------
Core income before taxes and minority interest NM 38 77 NM
Income taxes and minority interest, net of tax (11%) 19 13 (32%)
------- -------
CORE INCOME NM $ 19 $ 64 NM
======= =======
NET FLOWS BY BUSINESS (IN BILLIONS OF DOLLARS):
Retail/Private Bank (58%) $ 16.3 $ 9.2 (44%)
Institutional (58%) 19.1 19.2 1%
------- -------
Net Flows Excluding US Retail Money Markets (58%) $ 35.4 $ 28.4 (20%)
------- -------
US Retail Money Markets 64% $ (19.1) $ (6.1) 68%
ASSETS UNDER MANAGEMENT BY BUSINESS (IN BILLIONS OF DOLLARS):
Retail/Private Bank (2) (5%)
Institutional 23%
Citigroup Alternative Investments 4%
Retirement Services 38%
Total assets under management (2) 6%
ASSETS UNDER MANAGEMENT BY PRODUCT (IN BILLIONS OF DOLLARS):
Equity/Balanced (11%)
Fixed Income 34%
Money Markets/Liquidity 8%
Citigroup Alternative Investments 10%
Total assets under management (2) 6%
NUMBER OF MORNINGSTAR 4- AND 5-STAR MUTUAL FUND SHARE CLASSES (3)
Equity 9%
Fixed Income NM
CITISTREET JOINT VENTURE - ASSETS UNDER ADMINISTRATION (3%)
(IN BLLIONS OF DOLLARS)
</Table>
(1) Includes Retirement Services Businesses.
(2) Includes $29, $28, $29 and $31 billion for the first, second, third and
fourth quarters of 2001, respectively and $31 and $29 billion for the first
and seconds quarters of 2002, respectively for Citigroup Private Bank
clients.
(3) Asset calculations are based on classes of such funds ranked by
Morningstar. Number of funds reflects only one class per fund and are based
on performance of non-money market retail funds.
NM Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 21
<Page>
[CITIGROUP LOGO]
PROPERTY AND CASUALTY
PERSONAL LINES (1) (2)
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
TOTAL REVENUES $ 1,092 $ 1,117 $ 1,137 $ 1,156 $ 1,155 $ 1,183
Adjusted Operating Expenses 265 260 276 274 271 268
Claims and Claim Adjustment Expenses 688 793 820 798 786 818
---------- ---------- ---------- ---------- ---------- ----------
Core Income Before Taxes and Minority Interest 139 64 41 84 98 97
Income Taxes 44 17 9 24 27 27
Minority Interest, Net of Tax - - - - - 16
---------- ---------- ---------- ---------- ---------- ----------
CORE INCOME $ 95 $ 47 $ 32 $ 60 $ 71 $ 54
========== ========== ========== ========== ========== ==========
NET WRITTEN PREMIUMS BY PRODUCT LINE (3):
Auto $ 639.1 $ 669.0 $ 682.2 $ 652.3 $ 687.1 $ 714.6
Homeowners and other 322.7 404.5 414.6 381.9 350.3 459.4
---------- ---------- ---------- ---------- ---------- ----------
Total net written premiums (a) $ 961.8 $ 1,073.5 $ 1,096.8 $ 1,034.2 $ 1,037.4 $ 1,174.0
========== ========== ========== ========== ========== ==========
NET WRITTEN PREMIUMS BY DISTRIBUTION CHANNEL (3):
Independent agents $ 775.2 $ 865.0 $ 889.5 $ 836.6 $ 850.7 $ 961.4
Additional distribution 159.1 174.5 179.7 173.8 165.0 186.2
Other 27.5 34.0 27.6 23.8 21.7 26.4
---------- ---------- ---------- ---------- ---------- ----------
Total net written premiums (a) $ 961.8 $ 1,073.5 $ 1,096.8 $ 1,034.2 $ 1,037.4 $ 1,174.0
========== ========== ========== ========== ========== ==========
STATUTORY RATIO DEVELOPMENT (3):
Earned premiums (b) $ 957.9 $ 994.9 $ 1,021.5 $ 1,038.8 $ 1,030.0 $ 1,068.3
Losses and loss adjustment expenses (c) 688.5 793.1 819.7 798.4 785.7 818.4
Other underwriting expenses (d) 254.6 264.9 280.8 261.4 261.6 278.9
---------- ---------- ---------- ---------- ---------- ----------
Total deductions 943.1 1,058.0 1,100.5 1,059.8 1,047.3 1,097.3
---------- ---------- ---------- ---------- ---------- ----------
Statutory underwriting gain/(loss) $ 14.8 $ (63.1) $ (79.0) $ (21.0) $ (17.3) $ (29.0)
========== ========== ========== ========== ========== ==========
STATUTORY COMBINED RATIO (3):
Loss and loss adjustment expense ratio (c / b) 71.9% 79.7% 80.2% 76.9% 76.3% 76.6%
Other underwriting expense ratio (d / a) 26.5% 24.7% 25.6% 25.3% 25.2% 23.8%
---------- ---------- ---------- ---------- ---------- ----------
Combined ratio 98.4% 104.4% 105.8% 102.2% 101.5% 100.4%
========== ========== ========== ========== ========== ==========
Net investment income (pre-tax) $ 114.1 $ 102.7 $ 101.4 $ 97.4 $ 104.3 $ 95.3
Effective tax rate on net investment income 29.2% 28.1% 28.8% 27.9% 28.2% 27.6%
Catastrophe losses, net of reinsurance (after-tax) $ - $ 42.3 $ 41.6 $ 2.3 $ 10.4 $ 14.3
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
----------------- ---------- ---------- ---------------------
TOTAL REVENUES 6% $ 2,209 $ 2,338 6%
Adjusted Operating Expenses 3% 525 539 3%
Claims and Claim Adjustment Expenses 3% 1,481 1,604 8%
---------- ----------
Core Income Before Taxes and Minority Interest 52% 203 195 (4%)
Income Taxes 59% 61 54 (11%)
Minority Interest, Net of Tax - - 16 -
---------- ----------
CORE INCOME 15% $ 142 $ 125 (12%)
========== ==========
NET WRITTEN PREMIUMS BY PRODUCT LINE (3):
Auto 7% $ 1,308.1 $ 1,401.7 7%
Homeowners and other 14% 727.2 809.7 11%
---------- ----------
Total net written premiums (a) 9% $ 2,035.3 $ 2,211.4 9%
========== ==========
NET WRITTEN PREMIUMS BY DISTRIBUTION CHANNEL (3):
Independent agents 11% $ 1,640.2 $ 1,812.1 10%
Additional distribution 7% 333.6 351.2 5%
Other (22%) 61.5 48.1 (22%)
---------- ----------
Total net written premiums (a) 9% $ 2,035.3 $ 2,211.4 9%
========== ==========
STATUTORY RATIO DEVELOPMENT (3):
Earned premiums (b) 7% $ 1,952.8 $ 2,098.3 7%
Losses and loss adjustment expenses (c) 3% 1,481.6 1,604.1 8%
Other underwriting expenses (d) 5% 519.5 540.5 4%
---------- ----------
Total deductions 4% 2,001.1 2,144.6 7%
---------- ----------
Statutory underwriting gain/(loss) 54% $ (48.3) $ (46.3) 4%
========== ==========
STATUTORY COMBINED RATIO (3):
Loss and loss adjustment expense ratio (c / b) 75.9% 76.4%
Other underwriting expense ratio (d / a) 25.5% 24.4%
---------- ----------
Combined ratio 101.4% 100.8%
========== ==========
Net investment income (pre-tax) (7%) $ 216.8 $ 199.6 (8%)
Effective tax rate on net investment income 28.7% 27.9%
Catastrophe losses, net of reinsurance (after-tax) (66%) $ 42.3 $ 24.7 (42%)
</Table>
(1) Travelers Property Casualty Corp. (TPC) (a wholly-owned subsidiary of
Citigroup on December 31, 2001) sold 231,000,000 shares of class A common
stock at $18.50 per share in an initial public offering on March 27, 2002.
The offering resulted in an after-tax gain of $1.061 billion to Citigroup.
Citigroup plans to make a tax-free distribution to its stockholders of a
portion of its ownership interest in TPC by year-end 2002, such that
following the distribution, Citigroup would remain a holder of
approximately 9.9% of TPC's common equity. The distribution is subject to
various regulatory approvals as well as a private letter ruling from the
Internal Revenue Service and various other conditions. Citigroup has no
obligation to consummate the distribution by the end of 2002 or at all,
whether or not these conditions are satisfied. Income statement minority
interest was recognized on the initial public offering portion beginning on
April 1, 2002.
(2) Excludes Realized Insurance Investment Portfolio Gains (Losses) and
Interest Income and Expense. These Gains (Losses) and Interest items are
included within the Property and Casualty Business Segments "Realized
Insurance Investment Portfolio Gains (Losses)" and "Interest & Other" on
pages 2 - 5 herein.
(3) The 2001 third quarter results include the effects of the events of
September 11, 2001, which resulted in a decrease of $4.0 million to
premiums, an increase of $60.0 million to losses and loss adjustment
expenses and a decrease of $64.0 million to statutory underwriting loss.
Excluding the effects of these events, the loss and loss adjustment expense
ratio, other underwriting expense ratio, and combined ratio for the 2001
third quarter were 74.1%, 25.5%, and 99.6%, respectively.
Reclassified to conform to the current period's presentation.
PAGE 22
<Page>
[CITIGROUP LOGO]
PROPERTY AND CASUALTY
COMMERCIAL LINES (1) (2) (3)
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
TOTAL REVENUES $ 1,994 $ 2,040 $ 1,992 $ 2,036 $ 2,047 $ 2,173
Adjusted Operating Expenses 496 504 479 502 485 484
Claims and Claim Adjustment Expenses 1,096 1,125 1,763 1,156 1,200 1,276
---------- ---------- ---------- ---------- ---------- ----------
Core Income (Loss) Before Taxes and Minority Interest 402 411 (250) 378 362 413
Income Taxes (Benefits) 106 109 (123) 97 84 102
Minority Interest, Net of Tax - - - - - 72
---------- ---------- ---------- ---------- ---------- ----------
CORE INCOME (LOSS) $ 296 $ 302 $ (127) $ 281 $ 278 $ 239
========== ========== ========== ========== ========== ==========
NET WRITTEN PREMIUMS BY MARKET: (4)
Commercial accounts $ 761.3 $ 707.7 $ 684.8 $ 804.3 $ 859.3 $ 912.1
Select accounts 429.4 439.6 411.7 432.5 455.0 472.9
Bond 167.6 142.4 147.8 132.4 131.6 159.5
Gulf 174.8 189.5 153.9 90.0 145.0 180.2
National accounts 126.2 77.0 115.8 99.9 96.8 196.8
---------- ---------- ---------- ---------- ---------- ----------
Total net written premiums (a) $ 1,659.3 $ 1,556.2 $ 1,514.0 $ 1,559.1 $ 1,687.7 $ 1,921.5
========== ========== ========== ========== ========== ==========
STATUTORY RATIO DEVELOPMENT (4):
Earned premiums (b) $ 1,481.6 $ 1,504.6 $ 1,498.6 $ 1,535.2 $ 1,554.6 $ 1,688.4
Losses and loss adjustment expenses (c) 1,049.7 1,089.8 1,714.4 1,112.6 1,149.8 1,235.5
Other underwriting expenses (d) 493.0 449.1 450.2 434.6 460.6 482.0
---------- ---------- ---------- ---------- ---------- ----------
Total deductions 1,542.7 1,538.9 2,164.6 1,547.2 1,610.4 1,717.5
---------- ---------- ---------- ---------- ---------- ----------
Statutory underwriting loss $ (61.1) $ (34.3) $ (666.0) $ (12.0) $ (55.8) $ (29.1)
========== ========== ========== ========== ========== ==========
STATUTORY COMBINED RATIO: (4, 5)
Loss and loss adjustment expense ratio (c / b) 70.8% 72.4% 114.4% 72.5% 74.0% 73.2%
Other underwriting expense ratio (d / a) 29.7% 28.9% 29.7% 27.9% 27.3% 25.1%
---------- ---------- ---------- ---------- ---------- ----------
Combined ratio 100.5% 101.3% 144.1% 100.4% 101.3% 98.3%
========== ========== ========== ========== ========== ==========
Net investment income (pre-tax) $ 435.0 $ 435.7 $ 407.6 $ 399.2 $ 382.5 $ 369.7
Effective tax rate on net investment income 26.6% 26.8% 26.4% 25.8% 25.4% 24.9%
Catastrophe losses, net of reinsurance (after-tax) $ 8.2 $ 12.3 $ 447.9 $ 2.1 $ - $ -
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
----------------- ---------- ---------- ---------------------
TOTAL REVENUES 7% $ 4,034 $ 4,220 5%
Adjusted Operating Expenses (4%) 1,000 969 (3%)
Claims and Claim Adjustment Expenses 13% 2,221 2,476 11%
---------- ----------
Core Income (Loss) Before Taxes and Minority Interest - 813 775 (5%)
Income Taxes (Benefits) (6%) 215 186 (13%)
Minority Interest, Net of Tax - - 72 -
---------- ----------
CORE INCOME (LOSS) (21%) $ 598 $ 517 (14%)
========== ==========
NET WRITTEN PREMIUMS BY MARKET: (4)
Commercial accounts 29% $ 1,469.0 $ 1,771.4 21%
Select accounts 8% 869.0 927.9 7%
Bond 12% 310.0 291.1 (6%)
Gulf (5%) 364.3 325.2 (11%)
National accounts NM 203.2 293.6 44%
---------- ----------
Total net written premiums (a) 23% $ 3,215.5 $ 3,609.2 12%
========== ==========
STATUTORY RATIO DEVELOPMENT (4):
Earned premiums (b) 12% $ 2,986.2 $ 3,243.0 9%
Losses and loss adjustment expenses (c) 13% 2,139.5 2,385.3 11%
Other underwriting expenses (d) 7% 942.1 942.6 -
---------- ----------
Total deductions 12% 3,081.6 3,327.9 8%
---------- ----------
Statutory underwriting loss 15% $ (95.4) $ (84.9) 11%
========== ==========
STATUTORY COMBINED RATIO: (4, 5)
Loss and loss adjustment expense ratio (c / b) 71.6% 73.6%
Other underwriting expense ratio (d / a) 29.3% 26.1%
---------- ----------
Combined ratio 100.9% 99.7%
========== ==========
Net investment income (pre-tax) (15%) $ 870.7 $ 752.2 (14%)
Effective tax rate on net investment income 26.6% 25.2%
Catastrophe losses, net of reinsurance (after-tax) NM $ 20.5 $ - NM
</Table>
(1) Travelers Property Casualty Corp. (TPC) (a wholly-owned subsidiary of
Citigroup on December 31, 2001) sold 231,000,000 shares of class A common
stock at $18.50 per share in an initial public offering on March 27, 2002.
The offering resulted in an after-tax gain of $1.061 billion to Citigroup.
Citigroup plans to make a tax-free distribution to its stockholders of a
portion of its ownership interest in TPC by year-end 2002, such that
following the distribution, Citigroup would remain a holder of
approximately 9.9% of TPC's common equity. The distribution is subject to
various regulatory approvals as well as a private letter ruling from the
Internal Revenue Service and various other conditions. Citigroup has no
obligation to consummate the distribution by the end of 2002 or at all,
whether or not these conditions are satisfied. Income statement minority
interest was recognized on the initial public offering portion beginning on
April 1, 2002.
(2) Excludes Realized Insurance Investment Portfolio Gains (Losses) and
Interest Income and Expense. These Gains (Losses) and Interest items are
included within the Property and Casualty Business Segments "Realized
Insurance Investment Portfolio Gains (Losses)" and "Interest & Other" on
pages 2 - 5 herein.
(3) Includes the Non-Property and Casualty operations of the Associates
Insurance Company beginning in the 2001 fourth quarter due to its
acquisition by Travelers Property Casualty Corp. effective October 2001.
(4) The 2001 third quarter results include the effects of the events of
September 11, 2001, which resulted in a decrease of $45.0 million and
$689.0 million to premiums and statutory underwriting loss, respectively,
and an increase of $644.0 million to losses and loss adjustment expenses.
Excluding the effects of these events, the loss and loss adjustment expense
ratio, other underwriting expense ratio, and combined ratio for the 2001
third quarter were 69.3%, 28.9% and 98.2%, respectively.
(5) Before policyholder dividends.
NM Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 23
<Page>
[CITIGROUP LOGO]
PROPRIETARY INVESTMENT ACTIVITIES
(In millions of dollars)
<Table>
<Caption>
2Q 2002 VS.
1Q 2Q 3Q 4Q 1Q 2Q 2Q 2001 INCREASE/
2001 2001 2001 2001 2002 2002 (DECREASE)
----- ----- ----- ----- ----- ----- ------------------
REVENUES:
Proprietary Investments (1) $ (74) $ 310 $(360) $ 565 $ 92 $ (69) NM
Insurance Portfolio Realized Gains (Losses) (2) 115 1 98 (71) 25 (185) NM
----- ----- ----- ----- ----- -----
TOTAL REVENUES $ 41 $ 311 $(262) $ 494 $ 117 $(254) NM
===== ===== ===== ===== ===== =====
CORE INCOME:
Proprietary Investments (1) $ (68) $ 206 $(249) 335 $ 35 $ (70) NM
Insurance Portfolio Realized Gains (Losses) (2) 74 2 64 (46) 16 (120) NM
----- ----- ----- ----- ----- -----
TOTAL CORE INCOME $ 6 $ 208 $(185) $ 289 $ 51 $(190) NM
===== ===== ===== ===== ===== =====
TOTAL PERIOD END ASSETS (IN BILLIONS) $10.4 $10.0 $ 9.0 $ 9.3 $ 9.3 $ 8.3 (17%)
<Caption>
YTD YTD YTD 2Q 2002 VS.
2Q 2Q YTD 2Q 2001 INCREASE/
2001 2002 (DECREASE)
----- ----- ---------------------
REVENUES:
Proprietary Investments (1) $ 236 $ 23 (90%)
Insurance Portfolio Realized Gains (Losses) (2) 116 (160) NM
----- -----
TOTAL REVENUES $ 352 $(137) NM
===== =====
CORE INCOME:
Proprietary Investments (1) $ 138 $ (35) NM
Insurance Portfolio Realized Gains (Losses) (2) 76 (104) NM
----- -----
TOTAL CORE INCOME $ 214 $(139) NM
===== =====
TOTAL PERIOD END ASSETS (IN BILLIONS)
</Table>
(1) Includes Venture Capital Activities and certain other corporate investments.
(2) Property and Casualty realized gains (losses) are not included in this
segment. These Gains / (Losses) are included within the Property and
Casualty Business Segment "Realized Insurance Investment Portfolio Gains
(Losses)" on pages 2 - 5 herein.
NM Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 24
<Page>
[CITIGROUP LOGO]
INSURANCE INVESTMENT PORTFOLIO (1)
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
-------- -------- -------- -------- --------- --------
Fixed-income investments:
Available for sale, at market:
Mortgage-backed securities - principally
obligations of U.S. Government agencies $ 13,032 $ 13,541 $ 14,137 $ 13,723 $ 13,646 $ 15,044
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies 3,099 2,248 2,472 3,284 3,451 3,397
Corporates (including redeemable preferreds) 30,872 31,321 31,510 31,091 31,668 32,658
Obligations of states and political subdivisions 11,349 11,330 11,475 11,170 11,157 11,809
Debt securities issued by foreign governments 1,368 1,566 1,330 1,474 1,289 1,172
Held to maturity, at amortized cost 29 28 27 15 13 12
-------- -------- -------- -------- --------- --------
Total fixed income 59,749 60,034 60,951 60,757 61,224 64,092
Equity securities, at market 2,443 2,321 2,112 1,633 1,572 1,532
Short-term and other 8,029 6,947 9,616 9,863 9,168 9,164
-------- -------- -------- -------- --------- --------
TOTAL INVESTMENTS HELD BY INSURANCE COMPANIES (2) $ 70,221 $ 69,302 $ 72,679 $ 72,253 $ 71,964 $ 74,788
======== ======== ======== ======== ========= ========
After-tax unrealized gains / (losses) on invested assets $ 793 $ 458 $ 904 $ 470 $ (26) $ 531
======== ======== ======== ======== ========= ========
TOTAL INVESTMENTS HELD BY TRAVELERS PROPERTY AND CASUALTY CORP. $ 31,489 $ 30,410 $ 31,326 $ 32,619 $ 32,476 $ 33,369
======== ======== ======== ======== ========= ========
<Caption>
2Q 2002 VS.
2Q 2001 INCREASE/
(DECREASE)
-----------------
Fixed-income investments:
Available for sale, at market:
Mortgage-backed securities - principally
obligations of U.S. Government agencies 11%
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies 51%
Corporates (including redeemable preferreds) 4%
Obligations of states and political subdivisions 4%
Debt securities issued by foreign governments (25%)
Held to maturity, at amortized cost (57%)
Total fixed income 7%
Equity securities, at market (34%)
Short-term and other 32%
TOTAL INVESTMENTS HELD BY INSURANCE COMPANIES (2) 8%
After-tax unrealized gains / (losses) on invested assets 16%
TOTAL INVESTMENTS HELD BY TRAVELERS PROPERTY AND CASUALTY CORP. 10%
</Table>
(1) Includes investments held by insurance companies.
(2) Includes investments held by Travelers Property and Casualty Corp.
Reclassified to conform to the current period's presentation.
PAGE 25
<Page>
[CITIGROUP LOGO]
CITIGROUP CONSOLIDATED STATEMENT OF INCOME
(In millions of dollars)
<Table>
<Caption>
2Q 2002 VS.
1Q 2Q 3Q 4Q 1Q 2Q 2Q 2001 INCREASE/
2001 2001 2001 2001 2002 2002 (DECREASE)
-------- ------- ------- ------- ------- ------- -----------------
REVENUES
Loan interest, including fees $ 10,004 $ 9,753 $10,289 $ 9,570 $ 9,166 $ 9,524 (2%)
Other interest and dividends 7,169 7,013 6,827 5,940 5,436 5,953 (15%)
Insurance premiums 3,361 3,217 3,310 3,572 3,364 3,688 15%
Commissions and fees 4,132 3,752 3,840 4,220 4,032 4,213 12%
Principal transactions 2,325 1,417 1,019 783 1,666 1,099 (22%)
Asset management and administration fees 1,389 1,331 1,371 1,298 1,320 1,377 3%
Realized gains (losses) from sales of investments 451 60 213 (146) 54 (212) NM
Other income 973 1,311 845 1,413 856 1,286 (2%)
-------- ------- ------- ------- ------- -------
Total revenues 29,804 27,854 27,714 26,650 25,894 26,928 (3%)
Interest expense 9,523 8,469 8,327 5,646 4,899 5,655 (33%)
-------- ------- ------- ------- ------- -------
Total revenues, net of interest expense 20,281 19,385 19,387 21,004 20,995 21,273 10%
-------- ------- ------- ------- ------- -------
BENEFITS, CLAIMS, AND CREDIT LOSSES
Policyholder benefits and claims 2,727 2,681 3,403 2,948 2,789 3,019 13%
Provision for credit losses 1,474 1,485 1,580 2,261 2,559 2,057 39%
-------- ------- ------- ------- ------- -------
Total benefits, claims, and credit losses 4,201 4,166 4,983 5,209 5,348 5,076 22%
-------- ------- ------- ------- ------- -------
OPERATING EXPENSES
Non-insurance compensation and benefits 5,329 4,762 4,525 4,833 5,090 4,979 5%
Insurance underwriting, acquisition and operating 999 990 956 976 992 955 (4%)
Restructuring-related items (1) 132 213 134 (21) 47 (39) NM
Other operating 4,041 3,627 3,908 4,197 3,683 4,002 10%
-------- ------- ------- ------- ------- -------
Total operating expenses 10,501 9,592 9,523 9,985 9,812 9,897 3%
-------- ------- ------- ------- ------- -------
GAIN ON SALE OF STOCK BY SUBSIDIARY (2) - - - - 1,270 - -
-------- ------- ------- ------- ------- -------
INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGES 5,579 5,627 4,881 5,810 7,105 6,300 12%
Provision for income taxes 1,990 1,960 1,678 1,898 2,198 2,121 8%
Minority interest, net of income taxes 9 15 26 37 17 95 NM
-------- ------- ------- ------- ------- -------
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING
CHANGES 3,580 3,652 3,177 3,875 4,890 4,084 12%
Cumulative Effect of Accounting Changes (3) (42) (116) - - (47) - NM
-------- ------- ------- ------- ------- -------
NET INCOME $ 3,538 $ 3,536 $ 3,177 $ 3,875 $ 4,843 $ 4,084 15%
======== ======= ======= ======= ======= =======
<Caption>
YTD YTD YTD 2Q 2002 VS.
2Q 2Q YTD 2Q 2001 INCREASE/
2001 2002 (DECREASE)
-------- --------- ---------------------
REVENUES
Loan interest, including fees $ 19,757 $ 18,690 (5%)
Other interest and dividends 14,182 11,389 (20%)
Insurance premiums 6,578 7,052 7%
Commissions and fees 7,884 8,245 5%
Principal transactions 3,742 2,765 (26%)
Asset management and administration fees 2,720 2,697 (1%)
Realized gains (losses) from sales of investments 511 (158) NM
Other income 2,284 2,142 (6%)
-------- ---------
Total revenues 57,658 52,822 (8%)
Interest expense 17,992 10,554 (41%)
-------- ---------
Total revenues, net of interest expense 39,666 42,268 7%
-------- ---------
BENEFITS, CLAIMS, AND CREDIT LOSSES
Policyholder benefits and claims 5,408 5,808 7%
Provision for credit losses 2,959 4,616 56%
-------- ---------
Total benefits, claims, and credit losses 8,367 10,424 25%
-------- ---------
OPERATING EXPENSES
Non-insurance compensation and benefits 10,091 10,069 -
Insurance underwriting, acquisition and operating 1,989 1,947 (2%)
Restructuring-related items (1) 345 8 (98%)
Other operating 7,668 7,685 -
-------- ---------
Total operating expenses 20,093 19,709 (2%)
-------- ---------
GAIN ON SALE OF STOCK BY SUBSIDIARY (2) - 1,270 -
-------- ---------
INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGES 11,206 13,405 20%
Provision for income taxes 3,950 4,319 9%
Minority interest, net of income taxes 24 112 NM
-------- ---------
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING
CHANGES 7,232 8,974 24%
Cumulative Effect of Accounting Changes (3) (158) (47) 70%
-------- ---------
NET INCOME $ 7,074 $ 8,927 26%
======== =========
</Table>
(1) Restructuring-related items in the 2001 first quarter related principally
to severance and costs associated with the reduction of staff in the Global
Corporate and Investment Bank businesses, in the 2001 second quarter
related principally to severance and costs associated with the reduction of
staff primarily in the Global Corporate and Investment Bank and Global
Consumer businesses, in the 2001 third quarter primarily related to the
acquisition of Banamex and the integration of its operations, in the 2001
fourth quarter primarily related to reductions in the reserve due to
changes in estimates, in the 2002 first quarter primarily related to
severance and costs associated with the reduction of staff in Argentina
within the Latin America consumer and corporate businesses, and in the 2002
second quarter primarily related to reductions in the reserve due to
changes in estimates.
(2) Travelers Property Casualty Corp. (TPC) (a wholly-owned subsidiary of
Citigroup on December 31, 2001) sold 231,000,000 shares of class A common
stock at $18.50 per share in an initial public offering on March 27, 2002.
The offering resulted in an after-tax gain of $1.061 billion to Citigroup.
Citigroup plans to make a tax-free distribution to its stockholders of a
portion of its ownership interest in TPC by year-end 2002, such that
following the distribution, Citigroup would remain a holder of
approximately 9.9% of TPC's common equity. The distribution is subject to
various regulatory approvals as well as a private letter ruling from the
Internal Revenue Service and various other conditions. Citigroup has no
obligation to consummate the distribution by the end of 2002 or at all,
whether or not these conditions are satisfied. Income statement minority
interest was recognized on the initial public offering portion beginning on
April 1, 2002.
(3) 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), 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), and the first quarter 2002
adoption of the remaining provisions of SFAS No. 142, "Goodwill and Other
Intangible Assets" (SFAS 142).
NM Not meaningful
PAGE 26
<Page>
[CITIGROUP LOGO]
CITIGROUP EARNINGS ANALYSIS - MANAGED BASIS
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
--------- -------- -------- -------- -------- --------
Total Revenues, Net of Interest Expense $ 20,281 $ 19,385 $ 19,387 $ 21,004 $ 20,995 $ 21,273
Effect of Securitization Activities 766 930 907 965 1,021 1,081
--------- -------- -------- -------- -------- --------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 21,047 20,315 20,294 21,969 22,016 22,354
Total Operating Expenses 10,501 9,592 9,523 9,985 9,812 9,897
Restructuring-Related Items (1) (132) (213) (134) 21 (47) 39
--------- -------- -------- -------- -------- --------
ADJUSTED OPERATING EXPENSES 10,369 9,379 9,389 10,006 9,765 9,936
Benefits, Claims and Credit Losses 4,201 4,166 4,983 5,209 5,348 5,076
Effect of Securitization Activities 766 930 907 965 1,021 1,081
--------- -------- -------- -------- -------- --------
ADJUSTED BENEFITS, CLAIMS AND CREDIT LOSSES 4,967 5,096 5,890 6,174 6,369 6,157
CORE INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 5,711 5,840 5,015 5,789 5,882 6,261
Taxes on Core Income 2,042 2,040 1,727 1,890 2,006 2,107
Minority Interest, Net of Income Taxes 9 15 26 37 17 95
--------- -------- -------- -------- -------- --------
CORE INCOME 3,660 3,785 3,262 3,862 3,859 4,059
Restructuring-Related Items, After-tax (1) (80) (133) (85) 13 (30) 25
Gain on Sale of Stock by Subsidiary, After-tax (2) - - - - 1,061 -
Cumulative Effect of Accounting Changes (3) (42) (116) - - (47) -
--------- -------- -------- -------- -------- --------
NET INCOME $ 3,538 $ 3,536 $ 3,177 $ 3,875 $ 4,843 $ 4,084
========= ======== ======== ======== ======== ========
<Caption>
2Q 2002 VS. YTD YTD YTD 2Q 2002 VS.
2Q 2001 INCREASE/ 2Q 2Q YTD 2Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
----------------- -------- -------- ---------------------
Total Revenues, Net of Interest Expense 10% $ 39,666 $ 42,268 7%
Effect of Securitization Activities 16% 1,696 2,102 24%
-------- --------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 10% 41,362 44,370 7%
Total Operating Expenses 3% 20,093 19,709 (2%)
Restructuring-Related Items (1) NM (345) (8) 98%
-------- --------
ADJUSTED OPERATING EXPENSES 6% 19,748 19,701 -
Benefits, Claims and Credit Losses 22% 8,367 10,424 25%
Effect of Securitization Activities 16% 1,696 2,102 24%
-------- --------
ADJUSTED BENEFITS, CLAIMS AND CREDIT LOSSES 21% 10,063 12,526 24%
CORE INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 7% 11,551 12,143 5%
Taxes on Core Income 3% 4,082 4,113 1%
Minority Interest, Net of Income Taxes NM 24 112 NM
-------- --------
CORE INCOME 7% 7,445 7,918 6%
Restructuring-Related Items, After-tax (1) NM (213) (5) 98%
Gain on Sale of Stock by Subsidiary, After-tax (2) - - 1,061 -
Cumulative Effect of Accounting Changes (3) NM (158) (47) 70%
-------- --------
NET INCOME 15% $ 7,074 $ 8,927 26%
======== ========
</Table>
(1) Restructuring-related items in the 2001 first quarter related principally
to severance and costs associated with the reduction of staff in the Global
Corporate and Investment Bank businesses, in the 2001 second quarter
related principally to severance and costs associated with
the reduction of staff primarily in the Global Corporate and Investment
Bank and Global Consumer businesses, in the 2001 third quarter primarily
related to the acquisition of Banamex and the integration of its
operations, in the 2001 fourth quarter primarily related to reductions in
the reserve due to changes in estimates, in the 2002 first quarter
primarily related to severance and costs associated with the reduction of
staff in Argentina within the Latin America consumer and corporate
businesses, and in the 2002 second quarter primarily related to reductions
in the reserve due to changes in estimates.
(2) Travelers Property Casualty Corp. (TPC) (a wholly-owned subsidiary of
Citigroup on December 31, 2001) sold 231,000,000 shares of class A common
stock at $18.50 per share in an initial public offering on March 27, 2002.
The offering resulted in an after-tax gain of $1.061 billion to Citigroup.
Citigroup plans to make a tax-free distribution to its stockholders of a
portion of its ownership interest in TPC by year-end 2002, such that
following the distribution, Citigroup would remain a holder of
approximately 9.9% of TPC's common equity. The distribution is subject to
various regulatory approvals as well as a private letter ruling from the
Internal Revenue Service and various other conditions. Citigroup has no
obligation to consummate the distribution by the end of 2002 or at all,
whether or not these conditions are satisfied. Income statement minority
interest was recognized on the initial public offering portion beginning on
April 1, 2002.
(3) 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), 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), and the first quarter 2002
adoption of the remaining provisions of SFAS No. 142, "Goodwill and Other
Intangible Assets" (SFAS 142).
NM Not meaningful
PAGE 27
<Page>
[CITIGROUP LOGO]
CITIGROUP CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(In millions of dollars)
<Table>
<Caption>
MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31, MARCH 31,
2001 2001 2001 2001 2002
--------------- -------------- -------------- ------------- -----------
ASSETS
Cash and due from banks (including segregated cash
and other deposits) $ 14,373 $ 15,081 $ 21,877 $ 18,515 $ 15,984
Deposits at interest with banks 19,284 15,199 17,488 19,216 17,189
Federal funds sold and securities purchased under
resale agreements 134,188 138,668 138,582 134,809 150,605
Brokerage receivables 24,592 23,238 50,004 35,155 26,848
Trading account assets 137,137 145,113 155,292 144,904 145,059
Investments 125,698 123,480 147,879 160,837 172,085
Loans, net of unearned income
Consumer 220,780 225,018 246,779 248,201 246,699
Corporate 145,497 143,608 152,636 143,732 142,262
--------------- -------------- -------------- ------------- -----------
Loans, net of unearned income 366,277 368,626 399,415 391,933 388,961
Allowance for credit losses (8,957) (8,917) (9,918) (10,088) (10,520)
--------------- -------------- -------------- ------------- -----------
Total loans, net 357,320 359,709 389,497 381,845 378,441
Goodwill 11,949 11,975 23,327 23,861 25,506
Intangible assets 7,656 7,575 8,760 9,003 8,885
Reinsurance recoverables 10,507 10,636 12,064 12,373 12,531
Separate and variable accounts 23,514 25,102 23,080 25,569 25,981
Other assets 78,109 77,651 80,399 85,363 78,543
--------------- -------------- -------------- -------------- -----------
TOTAL ASSETS $ 944,327 $ 953,427 $ 1,068,249 $ 1,051,450 $ 1,057,657
=============== ============== ============== ============= ===========
LIABILITIES
Non-interest-bearing deposits in U.S. offices $ 16,755 $ 18,056 $ 20,598 $ 23,054 $ 21,652
Interest-bearing deposits in U.S. offices 81,637 85,515 102,572 110,388 119,083
Non-interest-bearing deposits in offices
outside the U.S. 13,975 14,115 16,463 18,779 18,488
Interest-bearing deposits in offices outside
the U.S. 200,918 196,912 217,537 222,304 223,166
--------------- -------------- -------------- ------------- -----------
Total deposits 313,285 314,598 357,170 374,525 382,389
Federal funds purchased and securities sold under
repurchase agreements 136,239 148,365 154,709 153,511 165,120
Brokerage payables 13,415 16,517 45,643 32,891 25,790
Trading account liabilities 84,783 76,034 74,508 80,543 81,537
Contractholder funds and separate and variable
accounts 44,501 46,812 45,714 48,932 49,992
Insurance policy and claims reserves 45,157 45,432 48,667 49,294 49,840
Investment banking and brokerage borrowings 17,843 12,817 9,975 14,804 17,091
Short-term borrowings 48,474 45,923 50,632 24,461 24,805
Long-term debt 118,080 121,705 128,276 121,631 117,757
Other liabilities 48,971 50,121 67,431 62,486 52,992
--------------- -------------- -------------- ------------- -----------
Citigroup or subsidiary obligated mandatorily
redeemable securities of subsidiary trusts
holding solely junior subordinated debt
securities of -Parent 2,300 2,300 4,850 4,850 4,326
-Subsidiary 2,620 2,275 2,275 2,275 2,380
--------------- -------------- -------------- ------------- -----------
TOTAL LIABILITIES 875,668 882,899 989,850 970,203 974,019
--------------- -------------- -------------- ------------- -----------
STOCKHOLDERS' EQUITY
Preferred Stock 1,747 1,763 1,774 1,525 1,400
Common Stock 54 54 55 55 55
Additional paid-in capital 17,050 16,881 23,150 23,196 23,860
Retained earnings 61,660 64,460 66,781 69,803 73,798
Treasury stock (10,299) (10,763) (11,170) (11,099) (11,194)
Accumulated other changes in equity from nonowner
sources 235 (90) (559) (844) (1,770)
Unearned compensation (1,788) (1,777) (1,632) (1,389) (2,511)
--------------- -------------- -------------- ------------- -----------
TOTAL STOCKHOLDERS' EQUITY 68,659 70,528 78,399 81,247 83,638
--------------- -------------- -------------- ------------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 944,327 $ 953,427 $ 1,068,249 $ 1,051,450 $ 1,057,657
=============== ============== ============== ============= ===========
<Caption>
JUNE 30, 2002
VS.
JUNE 30, DECEMBER 31, 2001
2002 (1) INC (DECR)
--------------- -----------------
ASSETS
Cash and due from banks (including segregated cash
and other deposits) $ 17,686 (4%)
Deposits at interest with banks 16,768 (13%)
Federal funds sold and securities purchased under
resale agreements 148,384 10%
Brokerage receivables 21,050 (40%)
Trading account assets 164,479 14%
Investments 172,945 8%
Loans, net of unearned income
Consumer 260,503 5%
Corporate 141,413 (2%)
---------------
Loans, net of unearned income 401,916 3%
Allowance for credit losses (10,437) (3%)
---------------
Total loans, net 391,479 3%
Goodwill 25,604 7%
Intangible assets 8,844 (2%)
Reinsurance recoverables 12,481 1%
Separate and variable accounts 24,017 (6%)
Other assets 78,881 (8%)
---------------
TOTAL ASSETS $ 1,082,618 3%
===============
LIABILITIES
Non-interest-bearing deposits in U.S. offices $ 21,878 (5%)
Interest-bearing deposits in U.S. offices 114,466 4%
Non-interest-bearing deposits in offices
outside the U.S. 19,706 5%
Interest-bearing deposits in offices outside
the U.S. 239,231 8%
---------------
Total deposits 395,281 6%
Federal funds purchased and securities sold under
repurchase agreements 171,619 12%
Brokerage payables 21,175 (36%)
Trading account liabilities 85,876 7%
Contractholder funds and separate and variable
accounts 49,925 2%
Insurance policy and claims reserves 50,129 2%
Investment banking and brokerage borrowings 16,015 8%
Short-term borrowings 24,638 1%
Long-term debt 114,580 (6%)
Other liabilities 60,897 (3%)
---------------
Citigroup or subsidiary obligated mandatorily
redeemable securities of subsidiary trusts
holding solely junior subordinated debt
securities of -Parent 4,435 (9%)
-Subsidiary 2,333 3%
---------------
TOTAL LIABILITIES 996,903 3%
---------------
STOCKHOLDERS' EQUITY
Preferred Stock 1,400 (8%)
Common Stock 55 -
Additional paid-in capital 23,815 3%
Retained earnings 76,924 10%
Treasury stock (12,624) (14%)
Accumulated other changes in equity from nonowner
sources (1,726) NM
Unearned compensation (2,129) (53%)
---------------
TOTAL STOCKHOLDERS' EQUITY 85,715 5%
---------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,082,618 3%
===============
</Table>
(1) Preliminary
NM Not meaningful
PAGE 28
<Page>
[CITIGROUP LOGO]
CONSUMER LOAN DELINQUENCY AMOUNTS AND NET CREDIT LOSSES AND RATIOS
(In millions of dollars, except loan amounts in billions)
<Table>
<Caption>
------------------------------------------ EOP
90 DAYS OR MORE PAST DUE (1) LOANS
------------------------------------------ ------------
2Q01 1Q02 2Q02 2Q02
------------ ------------ ------------ ------------
PRODUCT VIEW:
NORTH AMERICA CARDS $ 1,791 $ 2,294 $ 2,025 $ 110.8
RATIO 1.71% 2.13% 1.83%
INTERNATIONAL CARDS 147 194 223 10.9
RATIO 1.46% 1.95% 2.04%
CARDS 1,938 2,488 2,248 121.7
RATIO 1.68% 2.11% 1.85%
NORTH AMERICA CONSUMER FINANCE 1,759 1,979 1,828 61.6
RATIO 3.06% 3.28% 2.97%
INTERNATIONAL CONSUMER FINANCE 184 234 303 16.7
RATIO 1.39% 1.64% 1.82%
CONSUMER FINANCE 1,943 2,213 2,131 78.3
RATIO 2.74% 2.97% 2.72%
NORTH AMERICA RETAIL BANKING 1,379 2,405 2,333 68.8
RATIO 2.54% 3.53% 3.39%
INTERNATIONAL RETAIL BANKING 1,096 1,076 1,228 38.9
RATIO 2.97% 2.99% 3.16%
RETAIL BANKING 2,475 3,481 3,561 107.7
RATIO 2.71% 3.34% 3.31%
PRIVATE BANKING 64 143 193 28.8
RATIO 0.26% 0.52% 0.67%
OTHER CONSUMER 6 1 - 1.2
================================================================================================
TOTAL MANAGED $ 6,426 $ 8,326 $ 8,133 $ 337.7
RATIO 2.11% 2.56% 2.41%
================================================================================================
REGIONAL VIEW:
NORTH AMERICA (EXCLUDING MEXICO) $ 4,916 $ 5,765 $ 5,511 $ 248.6
RATIO 2.12% 2.39% 2.22%
MEXICO 49 979 762 9.9
RATIO 4.10% 8.71% 7.69%
WESTERN EUROPE 752 818 1,015 23.0
RATIO 4.10% 4.08% 4.41%
JAPAN 130 203 264 20.0
RATIO 0.80% 1.19% 1.32%
ASIA (EXCLUDING JAPAN) 350 387 387 27.3
RATIO 1.32% 1.46% 1.42%
LATIN AMERICA 176 102 115 3.9
RATIO 3.00% 2.46% 2.99%
CEEMEA 53 72 79 5.0
RATIO 1.16% 1.51% 1.59%
================================================================================================
TOTAL MANAGED $ 6,426 $ 8,326 $ 8,133 $ 337.7
RATIO 2.11% 2.56% 2.41%
================================================================================================
<Caption>
------------------------------------------ AVERAGE
NET CREDIT LOSSES (1) LOANS
------------------------------------------ ------------
2Q01 1Q02 2Q02 2Q02
------------ ------------ ------------ ------------
PRODUCT VIEW:
NORTH AMERICA CARDS $ 1,401 $ 1,681 $ 1,719 $ 108.0
RATIO 5.49% 6.33% 6.38%
INTERNATIONAL CARDS 102 112 123 10.6
RATIO 4.19% 4.47% 4.67%
CARDS 1,503 1,793 1,842 118.6
RATIO 5.37% 6.17% 6.23%
NORTH AMERICA CONSUMER FINANCE 353 442 470 60.9
RATIO 2.49% 3.00% 3.10%
INTERNATIONAL CONSUMER FINANCE 156 215 239 15.7
RATIO 4.72% 6.41% 6.12%
CONSUMER FINANCE 509 657 709 76.6
RATIO 2.91% 3.63% 3.71%
NORTH AMERICA RETAIL BANKING 30 87 120 68.8
RATIO 0.22% 0.51% 0.70%
INTERNATIONAL RETAIL BANKING 90 116 92 38.1
RATIO 0.97% 1.28% 0.97%
RETAIL BANKING 120 203 212 106.9
RATIO 0.53% 0.78% 0.80%
PRIVATE BANKING 3 2 - 28.3
RATIO 0.04% 0.04% 0.00%
OTHER CONSUMER 20 9 - 1.1
================================================================================================
TOTAL MANAGED $ 2,155 $ 2,664 $ 2,763 $ 331.5
RATIO 2.86% 3.32% 3.34%
================================================================================================
REGIONAL VIEW:
NORTH AMERICA (EXCLUDING MEXICO) $ 1,801 $ 2,159 $ 2,220 $ 244.2
RATIO 3.15% 3.63% 3.65%
MEXICO 4 61 90 10.5
RATIO 1.12% 2.14% 3.43%
WESTERN EUROPE 86 88 94 21.9
RATIO 1.86% 1.80% 1.72%
JAPAN 130 194 226 18.9
RATIO 3.19% 4.81% 4.79%
ASIA (EXCLUDING JAPAN) 66 79 91 27.1
RATIO 1.01% 1.20% 1.34%
LATIN AMERICA 57 70 30 4.0
RATIO 3.88% 5.78% 3.03%
CEEMEA 11 13 12 4.9
RATIO 0.97% 1.18% 1.03%
================================================================================================
TOTAL MANAGED $ 2,155 $ 2,664 $ 2,763 $ 331.5
RATIO 2.86% 3.32% 3.34%
================================================================================================
</Table>
(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 29
<Page>
[CITIGROUP LOGO]
RESERVE FOR LOAN LOSSES
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
------- -------- -------- -------- -------- --------
ALLOWANCE FOR CREDIT LOSSES AT BEGINNING OF PERIOD $ 8,961 $ 8,957 $ 8,917 $ 9,918 $ 10,088 $ 10,520
------- -------- -------- -------- -------- --------
PROVISION FOR CREDIT LOSSES:
Consumer 1,197 1,196 1,362 1,573 1,878 1,599
Corporate 277 289 218 688 681 458
------- -------- -------- -------- -------- --------
1,474 1,485 1,580 2,261 2,559 2,057
------- -------- -------- -------- -------- --------
GROSS CREDIT LOSSES:
Consumer 1,364 1,407 1,590 1,884 1,898 1,941
Corporate 331 369 400 943 557 626
------- -------- -------- -------- -------- --------
1,695 1,776 1,990 2,827 2,455 2,567
------- -------- -------- -------- -------- --------
CREDIT RECOVERIES:
Consumer 199 183 211 260 255 259
Corporate 54 82 119 152 72 141
------- -------- -------- -------- -------- --------
253 265 330 412 327 400
------- -------- -------- -------- -------- --------
NET CREDIT LOSSES 1,442 1,511 1,660 2,415 2,128 2,167
------- -------- -------- -------- -------- --------
Other -- net (1) (36) (14) 1,081 324 1 27
------- -------- -------- -------- -------- --------
ALLOWANCE FOR CREDIT LOSSES AT END OF PERIOD $ 8,957 $ 8,917 $ 9,918 $ 10,088 $ 10,520 $ 10,437
======= ======== ======== ======== ======== ========
Net Consumer credit losses $ 1,165 $ 1,224 $ 1,379 $ 1,624 $ 1,643 $ 1,682
As a percentage of average consumer loans 2.10% 2.19% 2.28% 2.62% 2.71% 2.70%
Net Corporate credit losses $ 277 $ 287 $ 281 $ 791 $ 485 $ 485
As a percentage of average corporate loans 0.81% 0.82% 0.76% 2.18% 1.42% 1.40%
ALLOWANCE FOR CREDIT LOSSES
Consumer $ 4,956 $ 4,914 $ 5,454 $ 5,507 $ 5,732 $ 5,756
Corporate 4,001 4,003 4,464 4,581 4,788 4,681
------- -------- -------- -------- -------- --------
Total Allowance for Credit Losses $ 8,957 $ 8,917 $ 9,918 $ 10,088 $ 10,520 $ 10,437
======= ======== ======== ======== ======== ========
ALLOWANCE AS A PERCENT OF TOTAL LOANS
Consumer 2.24% 2.18% 2.21% 2.22% 2.32% 2.21%
Corporate 2.75% 2.79% 2.92% 3.19% 3.37% 3.31%
Total 2.45% 2.42% 2.48% 2.57% 2.70% 2.60%
</Table>
(1) The third quarter 2001 includes the addition of $1 billion of credit
loss reserves related to the acquisition of Banamex. A review of the
Banamex credit portfolio was completed in the fourth quarter resulting in
an increase to the allowance for credit losses. This increase does not
relate to credit deterioration in the 2001 fourth quarter.
PAGE 30
<Page>
[CITIGROUP LOGO]
NONPERFORMING ASSETS
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
-------- -------- -------- -------- -------- --------
CASH-BASIS AND RENEGOTIATED LOANS
CORPORATE CASH-BASIS LOANS
Collateral Dependent (at lower of cost or collateral value) (1) $ 528 $ 527 $ 699 $ 699 $ 493 $ 485
Other 1,879 2,079 2,404 2,834 3,502 4,088
-------- -------- -------- -------- -------- --------
Total Corporate Cash-Basis Loans $ 2,407 $ 2,606 $ 3,103 $ 3,533 $ 3,995 $ 4,573
======== ======== ======== ======== ======== ========
CORPORATE CASH-BASIS LOANS
CitiCapital $ 439 $ 495 $ 613 $ 625 $ 674 $ 644
JENA (2) 710 654 620 900 924 1,074
Other International (3) 1,195 1,420 1,838 1,987 2,358 2,766
Insurance Subsidiaries 55 24 26 19 38 38
Investment Activities 8 13 6 2 1 51
-------- -------- -------- -------- -------- --------
Total Corporate Cash-Basis Loans $ 2,407 $ 2,606 $ 3,103 $ 3,533 $ 3,995 $ 4,573
======== ======== ======== ======== ======== ========
CORPORATE CASH BASIS LOANS AS A % OF
TOTAL CORPORATE LOANS 1.65% 1.81% 2.03% 2.46% 2.81% 3.23%
CORPORATE RENEGOTIATED LOANS $ 434 $ 435 $ 369 $ 336 $ 335 $ 317
======== ======== ======== ======== ======== ========
CONSUMER LOANS ON WHICH ACCRUAL OF INTEREST
HAS BEEN SUSPENDED $ 3,814 $ 4,134 $ 4,748 $ 4,742 $ 5,047 $ 4,992
======== ======== ======== ======== ======== ========
OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS
Consumer (4) $ 268 $ 289 $ 407 $ 393 $ 384 $ 458
-------- -------- -------- -------- -------- --------
Global Corporate and Investment Bank 178 199 189 147 145 136
Insurance Subsidiaries 123 111 112 118 125 123
-------- -------- -------- -------- -------- --------
Total Corporate (4) 301 310 301 265 270 259
-------- -------- -------- -------- -------- --------
Corporate/Other 8 8 9 8 - -
-------- -------- -------- -------- -------- --------
TOTAL OTHER REAL ESTATE OWNED $ 577 $ 607 $ 717 $ 666 $ 654 $ 717
======== ======== ======== ======== ======== ========
OTHER REPOSSESSED ASSETS (5) $ 419 $ 409 $ 479 $ 439 $ 381 $ 320
======== ======== ======== ======== ======== ========
</Table>
(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) JENA includes Japan, Western Europe and North America.
(3) Other International includes Asia (excluding Japan), Mexico, Latin
America, Central and Eastern Europe, Middle East and Africa. Banamex loan
data from the third quarter of 2001 forward is included in Mexico. A review
of the Banamex credit portfolio was completed in the fourth quarter which
caused Corporate cash-basis loans to increase. This increase does not
relate to credit deterioration in the 2001 fourth quarter.
(4) Represents repossessed real estate, carried at lower of cost or fair
value, less costs to sell.
(5) Primarily Corporate transportation equipment, carried at lower of cost or
fair value, less costs to sell.
Reclassified to conform to the current period's presentation.
PAGE 31
<Page>
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, 2002 CITIGROUP INC.
By: /s/ William P. Hannon
-------------------------------------
Name: William P. Hannon
Title: Controller