Page No.
--------
CITIGROUP:
Citigroup - Summary of Earnings...................................... 1
CITICORP:
Citicorp Financial Summary........................................... 2
Citicorp Earnings Analysis........................................... 3
Citicorp Segment Revenues ........................................... 4
Citicorp Segment Core Income ........................................ 5
Citicorp Global Consumer ............................................ 6
Citicorp Citibanking ................................................ 7
Citicorp Cards....................................................... 8
Citicorp Private Banking............................................. 9
Citicorp Global Consumer in Emerging Markets ........................ 10
Citicorp Global Consumer in Developed Markets........................ 11
Citicorp Global Corporate Banking.................................... 12
Citicorp Emerging Markets............................................ 13
Citicorp Global Relationship Banking................................. 14
Citicorp Investment Activities....................................... 15
Citicorp Corporate Items............................................. 15
Citicorp Other Revenue and Securities Transactions................... 16
Citicorp Trading-Related Revenue..................................... 16
Citicorp Cash-Basis and Renegotiated Loans........................... 17
Citicorp Other Real Estate Owned (OREO) and Assets Pending
Disposition ....................................................... 17
Citicorp U.S. Bankcards Data Sheet................................... 18
TRAVELERS GROUP:
Travelers Group - Summary of Earnings................................ 19
Travelers Group - Segment Revenues................................... 20
Travelers Group - Segment Core Business Income....................... 21
Travelers Group - Investment Services - (Page 1 of 3)................ 22
Travelers Group - Investment Services - (Page 2 of 3)................ 23
Travelers Group - Investment Services - (Page 3 of 3)................ 24
Travelers Group - Consumer Finance Services.......................... 25
Travelers Group - Life Insurance Services - (Page 1 of 4)............ 26
Travelers Group - Life Insurance Services - (Page 2 of 4)............ 27
Travelers Group - Life Insurance Services - (Page 3 of 4)............ 28
Travelers Group - Life Insurance Services - (Page 4 of 4)............ 29
Travelers Group - Property & Casualty Insurance Services -
(Page 1 of 4) ..................................................... 30
Travelers Group - Property & Casualty Insurance Services -
(Page 2 of 4) ..................................................... 31
Travelers Group - Property & Casualty Insurance Services -
(Page 3 of 4) ..................................................... 32
Travelers Group - Property & Casualty Insurance Services -
(Page 4 of 4) ..................................................... 33
Travelers Group - Selected Other Data................................ 34
CITIGROUP -- SUMMARY OF EARNINGS
(In millions of dollars, except per share amounts)
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1997 1997 1997 1997 1998 1998 1998
--------- --------- --------- --------- --------- --------- ---------
Income After Tax and Minority Interest:
Core Income $ 1,810 $ 1,907 $ 2,096 $ 1,934 $ 2,158 $ 2,047 $ 729
Restructuring Release (Charge) -- -- (556) (496) -- 191 --
--------- --------- --------- --------- --------- --------- ---------
Net Income $ 1,810 $ 1,907 $ 1,540 $ 1,438 $ 2,158 $ 2,238 $ 729
========= ========= ========= ========= ========= ========= =========
Basic Earnings Per Share:
Core Income $ 0.77 $ 0.82 $ 0.90 $ 0.83 $ 0.93 $ 0.89 $ 0.30
========= ========= ========= ========= ========= ========= =========
Net Income $ 0.77 $ 0.82 $ 0.66 $ 0.61 $ 0.93 $ 0.97 $ 0.30
========= ========= ========= ========= ========= ========= =========
Weighted average common shares
outstanding, applicable to Basic EPS 2,257.4 2,247.4 2,245.7 2,241.2 2,243.5 2,244.2 2,248.3
========= ========= ========= ========= ========= ========= =========
Diluted Earnings Per Share:
Core Income $ 0.74 $ 0.78 $ 0.86 $ 0.80 $ 0.90 $ 0.86 $ 0.30
========= ========= ========= ========= ========= ========= =========
Net Income $ 0.74 $ 0.78 $ 0.63 $ 0.59 $ 0.90 $ 0.94 $ 0.30
========= ========= ========= ========= ========= ========= =========
Adjusted weighted average common shares
outstanding, applicable to Diluted EPS 2,371.3 2,356.3 2,357.3 2,344.9 2,328.9 2,330.9 2,320.7
========= ========= ========= ========= ========= ========= =========
Total Assets, at period end (in billions) $ 658.3 $ 699.9 $ 705.0 $ 697.5 $ 738.9 $ 750.8 $ 701.8
========= ========= ========= ========= ========= ========= =========
Total Equity, at period end (in billions) $ 38.6 $ 40.7 $ 41.8 $ 42.1 $ 43.1 $ 44.1 $ 43.6
========= ========= ========= ========= ========= ========= =========
Book Value Per Share, at period end $ 15.51 $ 16.31 $ 16.92 $ 16.99 $ 17.55 $ 18.16 $ 18.16
========= ========= ========= ========= ========= ========= =========
Book value Per Share, excluding FAS 115 $ 15.27 $ 15.71 $ 16.09 $ 16.25 $ 16.77 $ 17.47 $ 17.48
========= ========= ========= ========= ========= ========= =========
Return on Equity (1) 19.6% 20.3% 21.3% 19.4% 21.3% 19.7% 6.5%
========= ========= ========= ========= ========= ========= =========
Return on Equity, excluding FAS 115 (1) 20.1% 20.8% 22.2% 20.0% 22.3% 20.6% 6.9%
========= ========= ========= ========= ========= ========= =========
YTD YTD
3Q 3Q Full Year
1997 1998 1997
--------- --------- ---------
Income After Tax and Minority Interest:
Core Income $ 5,813 $ 4,934 $ 7,747
Restructuring Release (Charge) (556) 191 (1,052)
--------- --------- ---------
Net Income $ 5,257 $ 5,125 $ 6,695
========= ========= =========
Basic Earnings Per Share:
Core Income $ 2.49 $ 2.12 $ 3.32
========= ========= =========
Net Income $ 2.24 $ 2.21 $ 2.85
========= ========= =========
Weighted average common shares
outstanding, applicable to Basic EPS 2,250.4 2,245.9 2,247.9
========= ========= =========
Diluted Earnings Per Share:
Core Income $ 2.38 $ 2.06 $ 3.18
========= ========= =========
Net Income $ 2.15 $ 2.14 $ 2.74
========= ========= =========
Adjusted weighted average common shares
outstanding, applicable to Diluted EPS 2,362.3 2,324.5 2,357.7
========= ========= =========
Total Assets, at period end (in billions) $ 705.0 $ 701.8 $ 697.5
========= ========= =========
Total Equity, at period end (in billions) $ 41.8 $ 43.6 $ 42.1
========= ========= =========
Book Value Per Share, at period end $ 16.92 $ 18.16 $ 16.99
========= ========= =========
Book value Per Share, excluding FAS 115 $ 16.09 $ 17.48 $ 16.25
========= ========= =========
Return on Equity (1) 20.5% 15.9% 20.2%
========= ========= =========
Return on Equity, excluding FAS 115 (1) 21.1% 16.5% 20.8%
========= ========= =========
(1) Based on Core Income.
Page 1
CITICORP FINANCIAL SUMMARY
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q
1997 1997 1997 1997 1998 1998
--------- --------- --------- --------- --------- ---------
Net Income $ 995 $ 1,024 $ 511 $ 1,061 $ 1,065 $ 1,097
========= ========= ========= ========= ========= =========
--------- --------- --------- --------- --------- ---------
Core Income Excluding Restructuring $ 995 $ 1,024 $ 1,067 $ 1,061 $ 1,065 $ 1,097
========= ========= ========= ========= ========= =========
Financial Ratios
Return on Assets 1.41% 1.40% 0.68% 1.39% 1.38% 1.35%
Return on Common Stockholders' Equity 20.76% 20.97% 9.64% 21.49% 21.74% 21.51%
Return on Total Stockholders' Equity 19.44% 19.72% 9.42% 20.18% 20.55% 20.46%
Adjusted Net Interest Margin 5.23% 5.00% 4.88% 4.85% 4.85% 5.02%
Financial Ratios Excluding Restructuring
Return on Assets 1.41% 1.40% 1.42% 1.39% 1.38% 1.35%
Return on Common Stockholders' Equity 20.76% 20.97% 20.77% 21.49% 21.74% 21.51%
Return on Total Stockholders' Equity 19.44% 19.72% 19.57% 20.18% 20.55% 20.46%
Capital (Dollars in Billions)
Tier 1 $ 20.3 $ 20.6 $ 20.7 $ 21.1 $ 21.3 $ 21.9
Total (Tier 1 and 2) (A) 29.3 30.1 30.4 31.2 31.2 31.8
Tier 1 Ratio (A) 8.39% 8.18% 8.25% 8.34% 8.26% 8.29%
Total Ratio (Tier 1 and 2) (A) 12.11% 11.96% 12.16% 12.31% 12.13% 12.05%
Common Equity as a Percentage of Total Assets 6.50% 6.41% 6.53% 6.21% 6.01% 6.18%
Total Equity as a Percentage of Total Assets 7.16% 7.04% 7.16% 6.82% 6.50% 6.57%
YTD YTD
3Q 3Q 3Q
1998 1997 1998
--------- --------- ---------
Net Income $ 530 $ 2,530 $ 2,692
========= ========= =========
--------- --------- ---------
Core Income Excluding Restructuring $ 530 $ 3,086 $ 2,692
========= ========= =========
Financial Ratios
Return on Assets 0.63% 1.16% 1.11%
Return on Common Stockholders' Equity 9.98% 16.98% 17.61%
Return on Total Stockholders' Equity 9.79% 16.08% 16.87%
Adjusted Net Interest Margin 5.06% N/A N/A
Financial Ratios Excluding Restructuring
Return on Assets 0.63% 1.41% 1.11%
Return on Common Stockholders' Equity 9.98% 20.84% 17.61%
Return on Total Stockholders' Equity 9.79% 19.58% 16.87%
Capital (Dollars in Billions)
Tier 1 $ 21.8 $ 20.7 $ 21.8
Total (Tier 1 and 2) (A) 31.8 30.4 31.8
Tier 1 Ratio (A) 8.0% 8.25% 8.0%
Total Ratio (Tier 1 and 2) (A) 11.7% 12.16% 11.7%
Common Equity as a Percentage of Total Assets 5.91% 6.53% 5.91%
Total Equity as a Percentage of Total Assets 6.16% 7.16% 6.16%
(A) Estimated for September 30, 1998.
N/A Not Available.
Page 2
CITICORP EARNINGS ANALYSIS
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1997 1997 1997 1997 1998 1998 1998
-------- -------- -------- -------- -------- -------- --------
Total Revenue $ 5,196 $ 5,311 $ 5,541 $ 5,568 $ 5,605 $ 6,202 $ 5,494
Effect of Credit Card Securitization Activity 434 437 408 434 461 579 573
Net Cost To Carry (A) (3) (1) (5) 4 (1) 11 4
-------- -------- -------- -------- -------- -------- --------
Adjusted Revenue 5,627 5,747 5,944 6,006 6,065 6,792 6,071
-------- -------- -------- -------- -------- -------- --------
Total Operating Expense 3,169 3,173 4,237 3,408 3,394 3,883 3,910
Net OREO Benefits (B) 10 37 16 9 12 2 13
Restructuring Charge -- -- (889) -- -- -- --
-------- -------- -------- -------- -------- -------- --------
Adjusted Operating Expense 3,179 3,210 3,364 3,417 3,406 3,885 3,923
-------- -------- -------- -------- -------- -------- --------
Operating Margin 2,448 2,537 2,580 2,589 2,659 2,907 2,148
-------- -------- -------- -------- -------- -------- --------
Global Consumer Net Write-Offs 459 488 452 432 426 510 479
Effect of Credit Card Securitization Activity 434 437 408 434 461 579 573
Net Cost to Carry and Net
OREO (Benefits) Costs (A) (B) 1 (3) (4) -- (1) (3) (8)
-------- -------- -------- -------- -------- -------- --------
Global Consumer Credit Costs 894 922 856 866 886 1,086 1,044
-------- -------- -------- -------- -------- -------- --------
Global Corporate Banking
Net Write-Offs (Recoveries) (6) 3 14 29 66 29 232
Net Cost to Carry and Net
OREO Costs (Benefits) (A) (B) (14) (35) (17) (5) (12) 12 (1)
Global Corporate Banking
-------- -------- -------- -------- -------- -------- --------
Credit Costs (Benefits) (20) (32) (3) 24 54 41 231
-------- -------- -------- -------- -------- -------- --------
Investment Activities Credit
-------- -------- -------- -------- -------- -------- --------
(Benefits) (55) (4) (5) -- (10) -- --
-------- -------- -------- -------- -------- -------- --------
Operating Margin Less Credit Costs 1,629 1,651 1,732 1,699 1,729 1,780 873
Additional Provision (C) 25 25 25 25 25 25 25
Restructuring Charge -- -- 889 -- -- -- --
-------- -------- -------- -------- -------- -------- --------
Income Before Taxes 1,604 1,626 818 1,674 1,704 1,755 848
Income Taxes 609 602 307 613 639 658 318
-------- -------- -------- -------- -------- -------- --------
Net Income $ 995 $ 1,024 $ 511 $ 1,061 $ 1,065 $ 1,097 $ 530
======== ======== ======== ======== ======== ======== ========
-------- -------- -------- -------- -------- -------- --------
Core Income Excluding Restructuring $ 995 $ 1,024 $ 1,067 $ 1,061 $ 1,065 $ 1,097 $ 530
======== ======== ======== ======== ======== ======== ========
YTD YTD
3Q 3Q
1997 1998
-------- --------
Total Revenue $ 16,048 $ 17,301
Effect of Credit Card Securitization Activity 1,279 1,613
Net Cost To Carry (A) (9) 14
-------- --------
Adjusted Revenue 17,318 18,928
-------- --------
Total Operating Expense 10,579 11,187
Net OREO Benefits (B) 63 27
Restructuring Charge (889) --
-------- --------
Adjusted Operating Expense 9,753 11,214
-------- --------
Operating Margin 7,565 7,714
-------- --------
Global Consumer Net Write-Offs 1,399 1,415
Effect of Credit Card Securitization Activity 1,279 1,613
Net Cost to Carry and Net
OREO (Benefits) Costs (A) (B) (6) (12)
-------- --------
Global Consumer Credit Costs 2,672 3,016
-------- --------
Global Corporate Banking
Net Write-Offs (Recoveries) 11 327
Net Cost to Carry and Net
OREO Costs (Benefits) (A) (B) (66) (1)
Global Corporate Banking -------- --------
Credit Costs (Benefits) (55) 326
Investment Activities Credit -------- --------
(Benefits) (64) (10)
-------- --------
Operating Margin Less Credit Costs 5,012 4,382
Additional Provision (C) 75 75
Restructuring Charge 889 --
-------- --------
Income Before Taxes 4,048 4,307
Income Taxes 1,518 1,615
-------- --------
Net Income $ 2,530 $ 2,692
======== ========
-------- --------
Core Income Excluding Restructuring $ 3,086 $ 2,692
======== ========
(A) Includes the net cost to carry cash-basis loans and other real estate
owned ("OREO").
(B) Includes gains and losses on sales, direct revenue and expense, and
writedowns of OREO.
(C) Represents amounts in excess of net write-offs.
Page 3
CITICORP SEGMENT REVENUES (A)
(In millions of dollars)
YTD YTD
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 3Q
1997 1997 1997 1997 1998 1998 1998 1997 1998
------- ------- ------- ------- ------- ------- ------- ------- -------
Global Consumer $ 3,069 $ 3,107 $ 3,128 $ 3,115 $ 3,046 $ 3,464 $ 3,633 $ 9,304 $10,143
Global Corporate Banking 1,763 1,660 1,788 1,709 1,858 2,036 1,461 5,211 5,355
------- ------- ------- ------- ------- ------- ------- ------- -------
Core Businesses 4,832 4,767 4,916 4,824 4,904 5,500 5,094 14,515 15,498
Investment Activities 146 308 348 493 468 439 117 802 1,024
Corporate Items 218 236 277 251 233 263 283 731 779
------- ------- ------- ------- ------- ------- ------- ------- -------
Total Citicorp $ 5,196 $ 5,311 $ 5,541 $ 5,568 $ 5,605 $ 6,202 $ 5,494 $16,048 $17,301
======= ======= ======= ======= ======= ======= ======= ======= =======
Supplemental Information
Global Consumer
Citibanking $ 1,476 $ 1,528 $ 1,532 $ 1,534 $ 1,510 $ 1,613 $ 1,680 $ 4,536 $ 4,803
Cards 1,322 1,300 1,299 1,291 1,251 1,548 1,652 3,921 4,451
Private Bank 271 279 297 290 285 303 301 847 889
------- ------- ------- ------- ------- ------- ------- ------- -------
Total $ 3,069 $ 3,107 $ 3,128 $ 3,115 $ 3,046 $ 3,464 $ 3,633 $ 9,304 $10,143
======= ======= ======= ======= ======= ======= ======= ======= =======
Global Consumer
Emerging Markets $ 948 $ 987 $ 970 $ 908 $ 877 $ 922 $ 982 $ 2,905 $ 2,781
Developed Markets 2,121 2,120 2,158 2,207 2,169 2,542 2,651 6,399 7,362
------- ------- ------- ------- ------- ------- ------- ------- -------
Total $ 3,069 $ 3,107 $ 3,128 $ 3,115 $ 3,046 $ 3,464 $ 3,633 $ 9,304 $10,143
======= ======= ======= ======= ======= ======= ======= ======= =======
Global Corporate Banking
Emerging Markets $ 832 $ 792 $ 881 $ 729 $ 891 $ 906 $ 697 $ 2,505 $ 2,494
Global Relationship Banking 931 868 907 980 967 1,130 764 2,706 2,861
------- ------- ------- ------- ------- ------- ------- ------- -------
Total $ 1,763 $ 1,660 $ 1,788 $ 1,709 $ 1,858 $ 2,036 $ 1,461 $ 5,211 $ 5,355
======= ======= ======= ======= ======= ======= ======= ======= =======
(A) Reclassified to conform to the latest quarter's presentation, including
the reclassification of Citicorp's venture capital activities, certain
Corporate investments, and the results of certain investments in the
former refinancing countries to a new business segment called "Investment
Activities."
Page 4
CITICORP SEGMENT CORE INCOME (A)
(In millions of dollars)
YTD YTD
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 3Q
1997 1997 1997 1997 1998 1998 1998 1997 1998
------- ------- ------- ------- ------- ------- ------- ------- -------
Global Consumer $ 475 $ 457 $ 452 $ 411 $ 420 $ 367 $ 477 $ 1,384 $ 1,264
Global Corporate Banking 457 397 417 194 390 377 (127) 1,271 640
------- ------- ------- ------- ------- ------- ------- ------- -------
Core Businesses 932 854 869 605 810 744 350 2,655 1,904
Investment Activities 166 240 259 386 376 341 71 665 788
Corporate Items (103) (70) (61) 70 (121) 12 109 (234) --
------- ------- ------- ------- ------- ------- ------- ------- -------
Total Citicorp $ 995 $ 1,024 $ 1,067 $ 1,061 $ 1,065 $ 1,097 $ 530 $ 3,086 $ 2,692
======= ======= ======= ======= ======= ======= ======= ======= =======
Supplemental Information
Global Consumer
Citibanking $ 175 $ 192 $ 168 $ 130 $ 158 $ 149 $ 178 $ 535 $ 485
Cards 219 185 193 205 189 141 227 597 557
Private Bank 81 80 91 76 73 77 72 252 222
------- ------- ------- ------- ------- ------- ------- ------- -------
Total $ 475 $ 457 $ 452 $ 411 $ 420 $ 367 $ 477 $ 1,384 $ 1,264
======= ======= ======= ======= ======= ======= ======= ======= =======
Global Consumer
Emerging Markets $ 240 $ 239 $ 218 $ 160 $ 159 $ 140 $ 158 $ 697 $ 457
Developed Markets 235 218 234 251 261 227 319 687 807
------- ------- ------- ------- ------- ------- ------- ------- -------
Total $ 475 $ 457 $ 452 $ 411 $ 420 $ 367 $ 477 $ 1,384 $ 1,264
======= ======= ======= ======= ======= ======= ======= ======= =======
Global Corporate Banking
Emerging Markets $ 309 $ 250 $ 280 $ 75 $ 285 $ 207 $ (19) $ 839 $ 473
Global Relationship Banking 148 147 137 119 105 170 (108) 432 167
------- ------- ------- ------- ------- ------- ------- ------- -------
Total $ 457 $ 397 $ 417 $ 194 $ 390 $ 377 $ (127) $ 1,271 $ 640
======= ======= ======= ======= ======= ======= ======= ======= =======
(A) Reclassified to conform to the latest quarter's presentation, including
the reclassification of Citicorp's venture capital activities, certain
Corporate investments, and the results of certain investments in the
former refinancing countries to a new business segment called "Investment
Activities."
Page 5
CITICORP GLOBAL CONSUMER (A)
(In millions of dollars)
YTD YTD
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 3Q
1997 1997 1997 1997 1998 1998 1998 1997 1998
------- ------- ------- ------- ------- ------- ------- ------- -------
Adjusted Revenue $ 3,503 $ 3,544 $ 3,534 $ 3,549 $ 3,506 $ 4,043 $ 4,199 $10,581 $11,748
Adjusted Operating Expense 1,908 1,961 2,011 2,059 1,994 2,378 2,407 5,880 6,779
------- ------- ------- ------- ------- ------- ------- ------- -------
Operating Margin 1,595 1,583 1,523 1,490 1,512 1,665 1,792 4,701 4,969
Credit Costs (B) 894 922 856 866 886 1,086 1,044 2,672 3,016
------- ------- ------- ------- ------- ------- ------- ------- -------
Operating Margin Less Credit
Costs 701 661 667 624 626 579 748 2,029 1,953
Additional Provision 25 25 25 25 25 25 25 75 75
Restructuring Charge -- -- 580 -- -- -- -- 580 --
------- ------- ------- ------- ------- ------- ------- ------- -------
Income Before Taxes 676 636 62 599 601 554 723 1,374 1,878
Income Taxes 201 179 (39) 188 181 187 246 341 614
------- ------- ------- ------- ------- ------- ------- ------- -------
Net Income $ 475 $ 457 $ 101 $ 411 $ 420 $ 367 $ 477 $ 1,033 $ 1,264
======= ======= ======= ======= ======= ======= ======= ======= =======
Average Assets (In Billions of Dollars) $ 131 $ 133 $ 134 $ 133 $ 131 $ 140 $ 144 $ 132 $ 139
Return on Assets (%) 1.47% 1.38% 0.30% 1.23% 1.30% 1.05% 1.31% 1.05% 1.22%
======= ======= ======= ======= ======= ======= ======= ======= =======
Excluding Restructuring Charge
Core Income $ 475 $ 457 $ 452 $ 411 $ 420 $ 367 $ 477 $ 1,384 $ 1,264
Return on Assets (%) 1.47% 1.38% 1.34% 1.23% 1.30% 1.05% 1.31% 1.40% 1.22%
======= ======= ======= ======= ======= ======= ======= ======= =======
(A) Reclassified to conform to the latest quarter's presentation.
(B) Includes the effect of credit card securitization activity and the effect
related to credit card receivables held for sale.
Page 6
CITICORP CITIBANKING (A)
(In millions of dollars)
YTD YTD
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 3Q
1997 1997 1997 1997 1998 1998 1998 1997 1998
------- ------- ------- ------- ------- ------- ------- ------- -------
Revenue $ 1,476 $ 1,528 $ 1,532 $ 1,534 $ 1,510 $ 1,613 $ 1,680 $ 4,536 $ 4,803
Operating Expense 1,071 1,099 1,148 1,187 1,154 1,233 1,260 3,318 3,647
------- ------- ------- ------- ------- ------- ------- ------- -------
Operating Margin 405 429 384 347 356 380 420 1,218 1,156
Credit Costs 148 145 135 139 137 144 144 428 425
------- ------- ------- ------- ------- ------- ------- ------- -------
Operating Margin Less Credit
Costs 257 284 249 208 219 236 276 790 731
Additional Provision -- -- -- -- (2) (4) (1) -- (7)
Restructuring Charge -- -- 457 -- -- -- -- 457 --
------- ------- ------- ------- ------- ------- ------- ------- -------
Income Before Taxes 257 284 (208) 208 221 240 277 333 738
Income Taxes 82 92 (101) 78 63 91 99 73 253
------- ------- ------- ------- ------- ------- ------- ------- -------
Net Income (Loss) $ 175 $ 192 $ (107) $ 130 $ 158 $ 149 $ 178 $ 260 $ 485
======= ======= ======= ======= ======= ======= ======= ======= =======
Average Assets (In Billions of Dollars) $ 83 $ 84 $ 85 $ 85 $ 86 $ 88 $ 92 $ 84 $ 89
Return on Assets (%) 0.86% 0.92% -- 0.61% 0.75% 0.68% 0.77% 0.41% 0.73%
======= ======= ======= ======= ======= ======= ======= ======= =======
Excluding Restructuring Charge
Core Income $ 175 $ 192 $ 168 $ 130 $ 158 $ 149 $ 178 $ 535 $ 485
Return on Assets (%) 0.86% 0.92% 0.78% 0.61% 0.75% 0.68% 0.77% 0.85% 0.73%
======= ======= ======= ======= ======= ======= ======= ======= =======
(A) Reclassified to conform to the latest quarter's presentation.
Page 7
CITICORP CARDS (A)
(In millions of dollars)
YTD YTD
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 3Q
1997 1997 1997 1997 1998 1998 1998 1997 1998
------ ------ ------ ------ ------ ------ ------ ------ ------
Adjusted Revenue $1,756 $1,737 $1,707 $1,725 $1,712 $2,127 $2,225 5,200 6,064
Adjusted Operating Expense 671 680 673 671 645 942 942 2,024 2,529
------ ------ ------ ------ ------ ------ ------ ------ ------
Operating Margin 1,085 1,057 1,034 1,054 1,067 1,185 1,283 3,176 3,535
Credit Costs 747 778 729 736 757 945 907 2,254 2,609
------ ------ ------ ------ ------ ------ ------ ------ ------
Operating Margin Less Credit
Costs 338 279 305 318 310 240 376 922 926
Additional Provision 25 25 25 25 27 29 26 75 82
Restructuring Charge -- -- 95 -- -- -- -- 95 --
------ ------ ------ ------ ------ ------ ------ ------ ------
Income Before Taxes 313 254 185 293 283 211 350 752 844
Income Taxes 94 69 50 88 94 70 123 213 287
------ ------ ------ ------ ------ ------ ------ ------ ------
Net Income $ 219 $ 185 $ 135 $ 205 $ 189 $ 141 $ 227 539 557
====== ====== ====== ====== ====== ====== ====== ====== ======
Average Assets (In Billions of Dollars) $ 31 $ 32 $ 32 $ 31 $ 29 $ 36 $ 35 $ 31 $ 33
Return on Assets (%) 2.87% 2.32% 1.67% 2.62% 2.64% 1.57% 2.57% 2.32% 2.26%
====== ====== ====== ====== ====== ====== ====== ====== ======
Excluding Restructuring Charge
Core Income $ 219 $ 185 $ 193 $ 205 $ 189 $ 141 $ 227 $ 597 $ 557
Return on Assets (%) 2.87% 2.32% 2.39% 2.62% 2.64% 1.57% 2.57% 2.57% 2.26%
====== ====== ====== ====== ====== ====== ====== ====== ======
(A) Reclassified to conform to the latest quarter's presentation.
Page 8
CITICORP PRIVATE BANKING (A)
(In millions of dollars)
YTD YTD
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 3Q
1997 1997 1997 1997 1998 1998 1998 1997 1998
----- ----- ----- ----- ----- ----- ----- ----- -----
Adjusted Revenue $ 271 $ 279 $ 295 $ 290 $ 284 $ 303 $ 294 $ 845 $ 881
Adjusted Operating Expense 166 182 190 201 195 203 205 538 603
----- ----- ----- ----- ----- ----- ----- ----- -----
Operating Margin 105 97 105 89 89 100 89 307 278
Credit (Benefits) (1) (1) (8) (9) (8) (3) (7) (10) (18)
----- ----- ----- ----- ----- ----- ----- ----- -----
Operating Margin Less Credit
(Benefits) 106 98 113 98 97 103 96 317 296
Restructuring Charge -- -- 28 -- -- -- -- 28 --
----- ----- ----- ----- ----- ----- ----- ----- -----
Income Before Taxes 106 98 85 98 97 103 96 289 296
Income Taxes 25 18 12 22 24 26 24 55 74
----- ----- ----- ----- ----- ----- ----- ----- -----
Net Income $ 81 $ 80 $ 73 $ 76 $ 73 $ 77 $ 72 $ 234 $ 222
===== ===== ===== ===== ===== ===== ===== ===== =====
Average Assets (In Billions of Dollars) $ 17 $ 17 $ 17 $ 17 $ 16 $ 16 $ 17 $ 17 $ 17
Return on Assets (%) 1.93% 1.89% 1.70% 1.77% 1.85% 1.93% 1.68% 1.84% 1.75%
===== ===== ===== ===== ===== ===== ===== ===== =====
Excluding Restructuring Charge
Core Income $ 81 $ 80 $ 91 $ 76 $ 73 $ 77 $ 72 $ 252 $ 222
Return on Assets (%) 1.93% 1.89% 2.12% 1.77% 1.85% 1.93% 1.68% 1.98% 1.75%
===== ===== ===== ===== ===== ===== ===== ===== =====
(A) Reclassified to conform to the latest quarter's presentation.
Page 9
CITICORP GLOBAL CONSUMER IN EMERGING MARKETS (A)
(In millions of dollars)
YTD YTD
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 3Q
1997 1997 1997 1997 1998 1998 1998 1997 1998
------ ------ ------ ------ ------ ------ ------ ------ ------
Adjusted Revenue $ 948 $ 987 $ 970 $ 908 $ 877 $ 922 $ 982 $2,905 $2,781
Adjusted Operating Expense 545 585 598 612 570 610 638 1,728 1,818
------ ------ ------ ------ ------ ------ ------ ------ ------
Operating Margin 403 402 372 296 307 312 344 1,177 963
Credit Costs 92 97 91 88 101 133 139 280 373
------ ------ ------ ------ ------ ------ ------ ------ ------
Operating Margin Less Credit
Costs 311 305 281 208 206 179 205 897 590
Additional Provision 4 7 15 25 11 11 11 26 33
Restructuring Charge -- -- 131 -- -- -- -- 131 --
------ ------ ------ ------ ------ ------ ------ ------ ------
Income Before Taxes 307 298 135 183 195 168 194 740 557
Income Taxes 67 59 (1) 23 36 28 36 125 100
------ ------ ------ ------ ------ ------ ------ ------ ------
Net Income $ 240 $ 239 $ 136 $ 160 $ 159 $ 140 $ 158 $ 615 $ 457
====== ====== ====== ====== ====== ====== ====== ====== ======
Average Assets (In Billions of Dollars) $ 42 $ 43 $ 43 $ 42 $ 41 $ 42 $ 45 $ 42 $ 43
Return on Assets (%) 2.32% 2.23% 1.25% 1.51% 1.57% 1.34% 1.39% 1.96% 1.43%
====== ====== ====== ====== ====== ====== ====== ====== ======
Excluding Restructuring Charge
Core Income $ 240 $ 239 $ 218 $ 160 $ 159 $ 140 $ 158 $ 697 $ 457
Return on Assets (%) 2.32% 2.23% 2.01% 1.51% 1.57% 1.34% 1.39% 2.22% 1.43%
====== ====== ====== ====== ====== ====== ====== ====== ======
(A) Reclassified to conform to the latest quarter's presentation.
Page 10
CITICORP GLOBAL CONSUMER IN DEVELOPED MARKETS (A)
(In millions of dollars)
YTD YTD
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 3Q
1997 1997 1997 1997 1998 1998 1998 1997 1998
------- ------- ------- ------- ------- ------- ------- ------- -------
Adjusted Revenue $ 2,555 $ 2,557 $ 2,564 $ 2,641 $ 2,629 $ 3,121 $ 3,217 $ 7,676 $ 8,967
Adjusted Operating Expense 1,363 1,376 1,413 1,447 1,424 1,768 1,769 4,152 4,961
------- ------- ------- ------- ------- ------- ------- ------- -------
Operating Margin 1,192 1,181 1,151 1,194 1,205 1,353 1,448 3,524 4,006
Credit Costs 802 825 765 778 785 953 905 2,392 2,643
------- ------- ------- ------- ------- ------- ------- ------- -------
Operating Margin Less Credit
Costs 390 356 386 416 420 400 543 1,132 1,363
Additional Provision 21 18 10 -- 14 14 14 49 42
Restructuring Charge -- -- 449 -- -- -- -- 449 --
------- ------- ------- ------- ------- ------- ------- ------- -------
Income Before Taxes 369 338 (73) 416 406 386 529 634 1,321
Income Taxes 134 120 (38) 165 145 159 210 216 514
------- ------- ------- ------- ------- ------- ------- ------- -------
Net Income (Loss) $ 235 $ 218 $ (35) $ 251 $ 261 $ 227 $ 319 $ 418 $ 807
======= ======= ======= ======= ======= ======= ======= ======= =======
Average Assets (In Billions of Dollars) $ 89 $ 90 $ 91 $ 91 $ 90 $ 98 $ 99 $ 90 $ 96
Return on Assets (%) 1.07% 0.97% -- 1.09% 1.18% 0.93% 1.28% 0.62% 1.13%
======= ======= ======= ======= ======= ======= ======= ======= =======
Excluding Restructuring Charge
Core Income $ 235 $ 218 $ 234 $ 251 $ 261 $ 227 $ 319 $ 687 $ 807
Return on Assets (%) 1.07% 0.97% 1.02% 1.09% 1.18% 0.93% 1.28% 1.02% 1.13%
======= ======= ======= ======= ======= ======= ======= ======= =======
(A) Reclassified to conform to the latest quarter's presentation.
Page 11
CITICORP GLOBAL CORPORATE BANKING (A)
(In millions of dollars)
YTD YTD
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 3Q
1997 1997 1997 1997 1998 1998 1998 1997 1998
------- ------- ------- ------- ------- ------- ------- ------- -------
Adjusted Revenue $ 1,760 $ 1,659 $ 1,785 $ 1,713 $ 1,858 $ 2,047 $ 1,472 $ 5,204 $ 5,377
Adjusted Operating Expense 1,148 1,204 1,267 1,341 1,299 1,415 1,424 3,619 4,138
------- ------- ------- ------- ------- ------- ------- ------- -------
Operating Margin 612 455 518 372 559 632 48 1,585 1,239
Credit Costs (Benefits) (20) (32) (3) 24 54 41 231 (55) 326
------- ------- ------- ------- ------- ------- ------- ------- -------
Operating Margin Less
Credit Costs (Benefits) 632 487 521 348 505 591 (183) 1,640 913
Restructuring Charge -- -- 281 -- -- -- -- 281 --
------- ------- ------- ------- ------- ------- ------- ------- -------
Income Before Taxes 632 487 240 348 505 591 (183) 1,359 913
Income Taxes 175 90 (9) 154 115 214 (56) 256 273
------- ------- ------- ------- ------- ------- ------- ------- -------
Net Income (Loss) $ 457 $ 397 $ 249 $ 194 $ 390 $ 377 $ (127) $ 1,103 $ 640
======= ======= ======= ======= ======= ======= ======= ======= =======
Average Assets (In Billions of Dollars) $ 140 $ 143 $ 151 $ 155 $ 165 $ 170 $ 173 $ 145 $ 169
Return on Assets (%) 1.32% 1.11% 0.65% 0.50% 0.96% 0.89% -- 1.02% 0.51%
======= ======= ======= ======= ======= ======= ======= ======= =======
Excluding Restructuring Charge
Core Income $ 457 $ 397 $ 417 $ 194 $ 390 $ 377 $ (127) $ 1,271 $ 640
Return on Assets (%) 1.32% 1.11% 1.10% 0.50% 0.96% 0.89% -- 1.17% 0.51%
======= ======= ======= ======= ======= ======= ======= ======= =======
(A) Reclassified to conform to the latest quarter's presentation, including
the reclassification of Citicorp's venture capital activities and the
results of certain investments in the former refinancing countries to a
new business segment called "Investment Activities."
Page 12
CITICORP EMERGING MARKETS (A)
(In millions of dollars)
YTD YTD
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 3Q
1997 1997 1997 1997 1998 1998 1998 1997 1998
------ ------ ------ ------ ------ ------ ------ ------ ------
Adjusted Revenue $ 833 $ 795 $ 883 $ 738 $ 902 $ 921 $ 713 $2,511 $2,536
Adjusted Operating Expense 444 472 499 533 494 524 531 1,415 1,549
------ ------ ------ ------ ------ ------ ------ ------ ------
Operating Margin 389 323 384 205 408 397 182 1,096 987
Credit Costs 19 28 35 53 73 93 212 82 378
------ ------ ------ ------ ------ ------ ------ ------ ------
Operating Margin Less
Credit Costs 370 295 349 152 335 304 (30) 1,014 609
Restructuring Charge -- -- 54 -- -- -- -- 54 --
------ ------ ------ ------ ------ ------ ------ ------ ------
Income Before Taxes 370 295 295 152 335 304 (30) 960 609
Income Taxes 61 45 47 77 50 97 (11) 153 136
------ ------ ------ ------ ------ ------ ------ ------ ------
Net Income (Loss) $ 309 $ 250 $ 248 $ 75 $ 285 $ 207 $ (19) $ 807 $ 473
====== ====== ====== ====== ====== ====== ====== ====== ======
Average Assets (In Billions of Dollars) $ 60 $ 63 $ 68 $ 73 $ 77 $ 79 $ 81 $ 64 $ 79
Return on Assets (%) 2.09% 1.59% 1.45% 0.41% 1.50% 1.05% -- 1.69% 0.80%
====== ====== ====== ====== ====== ====== ====== ====== ======
Excluding Restructuring Charge
Core Income $ 309 $ 250 $ 280 $ 75 $ 285 $ 207 $ (19) $ 839 $ 473
Return on Assets (%) 2.09% 1.59% 1.63% 0.41% 1.50% 1.05% -- 1.75% 0.80%
====== ====== ====== ====== ====== ====== ====== ====== ======
(A) Reclassified to conform to the latest quarter's presentation, including
the reclassification of the results of certain investments in the former
refinancing countries to a new business segment called "Investment
Activities."
Page 13
CITICORP GLOBAL RELATIONSHIP BANKING (A)
(In millions of dollars)
YTD YTD
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 3Q
1997 1997 1997 1997 1998 1998 1998 1997 1998
------- ------- ------- ------- ------- ------- ------- ------- -------
Adjusted Revenue $ 927 $ 864 $ 902 $ 975 $ 956 $ 1,126 $ 759 $ 2,693 $ 2,841
Adjusted Operating Expense 704 732 768 808 805 891 893 2,204 2,589
------- ------- ------- ------- ------- ------- ------- ------- -------
Operating Margin 223 132 134 167 151 235 (134) 489 252
Credit Costs (Benefits) (39) (60) (38) (29) (19) (52) 19 (137) (52)
------- ------- ------- ------- ------- ------- ------- ------- -------
Operating Margin Less
Credit Costs (Benefits) 262 192 172 196 170 287 (153) 626 304
Restructuring Charge -- -- 227 -- -- -- -- 227 --
------- ------- ------- ------- ------- ------- ------- ------- -------
Income Before Taxes 262 192 (55) 196 170 287 (153) 399 304
Income Taxes 114 45 (56) 77 65 117 (45) 103 137
------- ------- ------- ------- ------- ------- ------- ------- -------
Net Income (Loss) $ 148 $ 147 $ 1 $ 119 $ 105 $ 170 $ (108) $ 296 $ 167
======= ======= ======= ======= ======= ======= ======= ======= =======
Average Assets (In Billions of Dollars) $ 80 $ 80 $ 83 $ 82 $ 88 $ 91 $ 92 $ 81 $ 90
Return on Assets (%) 0.75% 0.74% -- 0.58% 0.48% 0.75% -- 0.49% 0.25%
======= ======= ======= ======= ======= ======= ======= ======= =======
Excluding Restructuring Charge
Core Income $ 148 $ 147 $ 137 $ 119 $ 105 $ 170 $ (108) $ 432 $ 167
Return on Assets (%) 0.75% 0.74% 0.65% 0.58% 0.48% 0.75% -- 0.71% 0.25%
======= ======= ======= ======= ======= ======= ======= ======= =======
(A) Reclassified to conform to the latest quarter's presentation, including
the reclassification of Citicorp's venture capital activities to a new
business segment called "Investment Activities."
Page 14
CITICORP INVESTMENT ACTIVITIES (A)
(In millions of dollars)
YTD YTD
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 3Q
1997 1997 1997 1997 1998 1998 1998 1997 1998
------- ------- ------- ------- ------- ------- ------- ------- -------
Revenue $ 146 $ 308 $ 348 $ 493 $ 468 $ 439 $ 117 $ 802 $ 1,024
Operating Expense 9 8 9 12 11 12 11 26 34
------- ------- ------- ------- ------- ------- ------- ------- -------
Operating Margin 137 300 339 481 457 427 106 776 990
Credit (Benefits) (55) (4) (5) -- (10) -- -- (64) (10)
------- ------- ------- ------- ------- ------- ------- ------- -------
Income Before Taxes 192 304 344 481 467 427 106 840 1,000
Income Taxes 26 64 85 95 91 86 35 175 212
------- ------- ------- ------- ------- ------- ------- ------- -------
Net Income $ 166 $ 240 $ 259 $ 386 $ 376 $ 341 $ 71 $ 665 $ 788
======= ======= ======= ======= ======= ======= ======= ======= =======
Average Assets (In Billions of Dollars) $ 9 $ 9 $ 9 $ 9 $ 9 $ 9 $ 8 $ 9 $ 9
Return on Assets (%) 7.48% 10.70% 11.42% 17.02% 16.94% 15.20% 3.52% 9.88% 11.75%
======= ======= ======= ======= ======= ======= ======= ======= =======
(A) Investment Activities comprises Citicorp's venture capital activities,
certain Corporate investments, and the results of certain investments in
the former refinancing countries.
CITICORP CORPORATE ITEMS (A) (B)
(In millions of dollars)
YTD YTD
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 3Q
1997 1997 1997 1997 1998 1998 1998 1997 1998
----- ----- ----- ----- ----- ----- ----- ----- -----
Revenue $ 218 $ 236 $ 277 $ 251 $ 233 $ 263 $ 283 $ 731 $ 779
Operating Expense 114 37 77 5 102 80 81 228 263
----- ----- ----- ----- ----- ----- ----- ----- -----
Operating Margin 104 199 200 246 131 183 202 503 516
Restructuring Charge -- -- 28 -- -- -- -- 28 --
----- ----- ----- ----- ----- ----- ----- ----- -----
Income Before Taxes 104 199 172 246 131 183 202 475 516
Income Taxes 207 269 270 176 252 171 93 746 516
----- ----- ----- ----- ----- ----- ----- ----- -----
Net Income (Loss) $(103) $ (70) $ (98) $ 70 $(121) $ 12 $ 109 $(271) $ --
===== ===== ===== ===== ===== ===== ===== ===== =====
Average Assets (In Billions of Dollars) $ 5 $ 8 $ 5 $ 5 $ 8 $ 8 $ 7 $ 6 $ 7
===== ===== ===== ===== ===== ===== ===== ===== =====
Excluding Restructuring Charge
Core Income $(103) $ (70) $ (61) $ 70 $(121) $ 12 $ 109 $(234) $ --
===== ===== ===== ===== ===== ===== ===== ===== =====
(A) Corporate Items includes revenue derived from charging businesses for
funds employed, based upon a marginal cost of funds concept, unallocated
corporate costs, and the offset created by attributing income taxes to
core business activities on a local tax-rate basis.
(B) Reclassified to conform to the latest quarter's presentation, including
the reclassification of certain Corporate investments and the results of
certain investments in the former refinancing countries to a new business
segment called "Investment Activities."
Page 15
CITICORP OTHER REVENUE AND SECURITIES TRANSACTIONS
(In millions of dollars)
YTD YTD
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 3Q
1997 1997 1997 1997 1998 1998 1998 1997 1998
------ ------ ------ ------ ------ ------ ------ ------ ------
Securities Transactions $ 108 $ 124 $ 186 $ 250 $ 241 $ 300 $ (56) $ 418 $ 485
------ ------ ------ ------ ------ ------ ------ ------ ------
Other Revenue
Credit Card Securitization Activity $ 165 $ 118 $ 134 $ 142 $ 138 $ 351 $ 374 $ 417 $ 863
Venture Capital 93 173 235 248 264 171 (31) 501 404
Affiliate Earnings 59 112 51 33 29 42 47 222 118
Net Asset Gains 92 64 (6) 206 31 198 142 150 371
Other Items 28 8 18 29 37 29 30 54 96
------ ------ ------ ------ ------ ------ ------ ------ ------
Total Other Revenue $ 437 $ 475 $ 432 $ 658 $ 499 $ 791 $ 562 $1,344 $1,852
====== ====== ====== ====== ====== ====== ====== ====== ======
CITICORP TRADING-RELATED REVENUE
(In millions of dollars)
YTD YTD
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 3Q
1997 1997 1997 1997 1998 1998 1998 1997 1998
------ ------ ------ ------ ------ ------ ------ ------ ------
By Income Statement Line
Foreign Exchange $ 297 $ 311 $ 435 $ 443 $ 349 $ 465 $ 474 $1,043 $1,288
Trading Account 198 97 134 (188) 236 98 (159) 429 175
Other 94 103 91 92 143 167 77 288 387
------ ------ ------ ------ ------ ------ ------ ------ ------
Total $ 589 $ 511 $ 660 $ 347 $ 728 $ 730 $ 392 $1,760 $1,850
====== ====== ====== ====== ====== ====== ====== ====== ======
By Trading Activity
Foreign Exchange $ 237 $ 258 $ 342 $ 327 $ 386 $ 391 $ 386 $ 837 $1,163
Derivative 207 129 170 (49) 236 218 110 506 564
Fixed Income 70 59 75 1 56 31 (36) 204 51
Other 75 65 73 68 50 90 (68) 213 72
------ ------ ------ ------ ------ ------ ------ ------ ------
Total $ 589 $ 511 $ 660 $ 347 $ 728 $ 730 $ 392 $1,760 $1,850
====== ====== ====== ====== ====== ====== ====== ====== ======
By Business Sector
Emerging Markets $ 207 $ 155 $ 268 $ 132 $ 271 $ 259 $ 184 $ 630 $ 714
Global Relationship Banking 330 270 296 134 378 357 113 896 848
------ ------ ------ ------ ------ ------ ------ ------ ------
Total Corporate Banking 537 425 564 266 649 616 297 1,526 1,562
Consumer and Other 52 86 96 81 79 114 95 234 288
------ ------ ------ ------ ------ ------ ------ ------ ------
Total $ 589 $ 511 $ 660 $ 347 $ 728 $ 730 $ 392 $1,760 $1,850
====== ====== ====== ====== ====== ====== ====== ====== ======
Page 16
CITICORP CASH-BASIS AND RENEGOTIATED LOANS
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1997 1997 1997 1997 1998 1998 1998
------ ------ ------ ------ ------ ------ ------
Commercial Cash-Basis Loans
Collateral Dependent
(at Lower of Cost or Collateral Value) (A) $ 288 $ 274 $ 271 $ 258 $ 242 $ 193 $ 170
Other (B) 641 643 698 806 1,102 1,100 1,110
------ ------ ------ ------ ------ ------ ------
Total Commercial Cash-Basis Loans $ 929 $ 917 $ 969 $1,064 $1,344 $1,293 $1,280
====== ====== ====== ====== ====== ====== ======
Commercial Cash-Basis Loans
Emerging Markets (B) $ 399 $ 470 $ 520 $ 649 $ 953 $ 981 $ 982
Global Relationship Banking 514 434 436 401 378 300 286
Investment Activities 16 13 13 14 13 12 12
------ ------ ------ ------ ------ ------ ------
Total Commercial Cash-Basis Loans $ 929 $ 917 $ 969 $1,064 $1,344 $1,293 $1,280
====== ====== ====== ====== ====== ====== ======
Commercial Renegotiated Loans $ 296 $ 295 $ 70 $ 59 $ 61 $ 45 $ 48
====== ====== ====== ====== ====== ====== ======
Consumer Loans on which Accrual
of Interest has been Suspended $2,119 $2,036 $1,902 $1,849 $1,850 $1,864 $1,924
====== ====== ====== ====== ====== ====== ======
(A) 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.
(B) Includes foreign currency derivative contracts with a balance sheet credit
exposure of $44 million, $44 million, $83 million, and $59 million at
September 30, 1998, June 30, 1998, March 31, 1998, and December 31, 1997,
respectively, for which the recognition of revaluation gains has been
suspended.
CITICORP OTHER REAL ESTATE OWNED (OREO) AND ASSETS PENDING DISPOSITION (A)
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1997 1997 1997 1997 1998 1998 1998
------ ------ ------ ------ ------ ------ ------
Consumer OREO $ 408 $ 362 $ 309 $ 263 $ 242 $ 182 $ 238
Emerging Markets 24 22 23 21 21 24 26
Global Relationship Banking 569 460 456 440 329 324 319
------ ------ ------ ------ ------ ------ ------
Commercial OREO 593 482 479 461 350 348 345
====== ====== ====== ====== ====== ====== ======
Total $1,001 $ 844 $ 788 $ 724 $ 592 $ 530 $ 583
====== ====== ====== ====== ====== ====== ======
Assets Pending Disposition (B) $ 174 $ 72 $ 88 $ 96 $ 103 $ 104 $ 103
====== ====== ====== ====== ====== ====== ======
(A) Carried at lower of cost or collateral value.
(B) Represents consumer residential mortgage loans that have a high
probability of foreclosure.
Page 17
CITICORP U.S. BANKCARDS DATA SHEET
(In billions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1997 1997 1997 1997 1998 1998 1998
-------- -------- -------- -------- -------- -------- --------
End of Period Managed Receivables $ 45.1 $ 45.8 $ 46.5 $ 48.2 $ 45.3 $ 60.3 $ 62.0
Total accounts (In Millions) 25.1 25.1 25.0 24.8 24.5 38.2 38.5
Charge volume $ 23.0 $ 25.3 $ 26.6 $ 27.9 $ 24.1 $ 34.0 $ 36.4
End of Period Loans
On Balance Sheet $ 17.2 $ 19.1 $ 17.9 $ 18.8 $ 15.2 $ 15.8 $ 18.3
Securitized $ 25.4 $ 24.2 $ 26.0 $ 26.8 $ 27.6 $ 41.3 $ 40.4
Held for sale $ 2.0 $ 2.0 $ 2.0 $ 2.0 $ 2.0 $ 2.5 $ 2.5
Total $ 44.6 $ 45.3 $ 45.9 $ 47.6 $ 44.8 $ 59.6 $ 61.2
Average Loans
On Balance Sheet $ 17.9 $ 18.0 $ 18.6 $ 17.7 $ 16.1 $ 19.6 $ 17.9
Securitized $ 25.1 $ 24.7 $ 24.8 $ 26.3 $ 27.4 $ 36.8 $ 39.9
Held for sale $ 2.0 $ 2.0 $ 2.0 $ 2.0 $ 2.0 $ 2.5 $ 2.5
Total $ 45.0 $ 44.7 $ 45.4 $ 46.0 $ 45.5 $ 58.9 $ 60.3
Write-offs (In Millions of Dollars)
On Balance Sheet $ 222 $ 246 $ 231 $ 221 $ 207 $ 263 $ 222
Securitized $ 402 $ 404 $ 378 $ 403 $ 430 $ 542 $ 539
Held for sale $ 32 $ 33 $ 30 $ 31 $ 31 $ 37 $ 34
Total $ 656 $ 683 $ 639 $ 655 $ 668 $ 842 $ 795
Adjusted for Sale of Bankrupt Accounts -- -- 650 -- -- -- --
Coincident Net Credit Loss Rate 5.91% 6.13% 5.58% 5.64% 5.96% 5.73% 5.23%
Adjusted for Sale of Bankrupt Accounts -- -- 5.68% -- -- -- --
12 Month Lagged Net Credit Loss Rate (ex-UCS) 6.21% 6.51% 5.93% 5.86% 6.03% 5.98% 5.49%
Adjusted for Sale of Bankrupt Accounts -- -- 6.03% -- -- -- --
90+ Days Past Due
(In Millions of Dollars) $ 884 $ 843 $ 806 $ 856 $ 842 $ 942 $ 924
(%) 1.98% 1.86% 1.76% 1.80% 1.88% 1.58% 1.51%
% of Gross Write-offs that are Bankruptcies 37% 40% 40% 41% 37% 41% 43%
2Q 3Q
1998 1998
EX-UCS EX-UCS
-------- --------
End of Period Managed Receivables
Total accounts (In Millions)
Charge volume
End of Period Loans
On Balance Sheet
Securitized
Held for sale
Total $ 45.2 $ 46.0
Average Loans
On Balance Sheet
Securitized
Held for sale
Total $ 44.8 $ 45.7
Write-offs (In Millions of Dollars)
On Balance Sheet
Securitized
Held for sale
Total $ 667 $ 629
Adjusted for Sale of Bankrupt Accounts
Coincident Net Credit Loss Rate 5.97% 5.46%
Adjusted for Sale of Bankrupt Accounts
12 Month Lagged Net Credit Loss Rate (ex-UCS)
Adjusted for Sale of Bankrupt Accounts
90+ Days Past Due
(In Millions of Dollars) $ 766 $ 747
(%) 1.70% 1.62%
% of Gross Write-offs that are Bankruptcies 40% 42%
Page 18
TRAVELERS GROUP -- SUMMARY OF EARNINGS
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1997 1997 1997 1997 1998 1998 1998
--------- --------- --------- --------- --------- --------- ---------
Revenue $ 8,699.9 $ 9,183.6 $ 9,960.1 $ 9,765.0 $10,367.6 $10,096.0 $ 8,221.9
========= ========= ========= ========= ========= ========= =========
Revenue, Net of Interest Expense $ 6,322.2 $ 6,391.6 $ 6,880.1 $ 6,572.1 $ 7,190.2 $ 6,763.1 $ 4,927.6
========= ========= ========= ========= ========= ========= =========
Income After Tax and Minority Interest
Core Business Income $ 858.0 $ 924.0 $ 1,007.0 $ 785.3 $ 1,028.0 $ 968.1 $ 225.4
Investment Portfolio Gains (Losses) 8.9 5.7 82.0 144.0 86.5 27.8 25.4
Corporate and Other (51.8) (46.5) (60.3) (56.6) (21.1) (46.5) (51.6)
--------- --------- --------- --------- --------- --------- ---------
Core Income 815.1 883.2 1,028.7 872.7 1,093.4 949.4 199.2
Restructuring Release (Charge) -- -- -- (496.0) -- 191.2 --
--------- --------- --------- --------- --------- --------- ---------
Net Income $ 815.1 $ 883.2 $ 1,028.7 $ 376.7 $ 1,093.4 $ 1,140.6 $ 199.2
========= ========= ========= ========= ========= ========= =========
YTD YTD
3Q 3Q
1997 1998
--------- ---------
Revenue $27,843.6 $28,685.5
========= =========
Revenue, Net of Interest Expense $19,593.9 $18,880.9
========= =========
Income After Tax and Minority Interest
Core Business Income $ 2,789.0 $ 2,221.5
Investment Portfolio Gains (Losses) 96.6 139.7
Corporate and Other (158.6) (119.2)
--------- ---------
Core Income 2,727.0 2,242.0
Restructuring Release (Charge) -- 191.2
--------- ---------
Net Income $ 2,727.0 $ 2,433.2
========= =========
Page 19
TRAVELERS GROUP -- SEGMENT REVENUES
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1997 1997 1997 1997 1998 1998 1998
--------- --------- --------- --------- --------- --------- ---------
REVENUES
Investment Services
Investment banking and brokerage $ 4,691.3 $ 5,115.6 $ 5,660.4 $ 5,247.4 $ 5,831.8 $ 5,582.7 $ 3,690.1
Asset management 186.1 193.6 213.1 199.9 224.9 226.8 244.2
--------- --------- --------- --------- --------- --------- ---------
Total Investment Services 4,877.4 5,309.2 5,873.5 5,447.3 6,056.7 5,809.5 3,934.3
--------- --------- --------- --------- --------- --------- ---------
Consumer Finance Services 377.1 379.6 448.1 483.0 485.0 514.2 542.3
--------- --------- --------- --------- --------- --------- ---------
Life Insurance Services
Travelers Life and Annuity 617.9 665.7 716.0 890.3 771.9 799.6 721.0
Primerica Financial Services 375.2 375.4 384.2 401.4 401.4 421.0 414.5
--------- --------- --------- --------- --------- --------- ---------
Total Life Insurance Services 993.1 1,041.1 1,100.2 1,291.7 1,173.3 1,220.6 1,135.5
--------- --------- --------- --------- --------- --------- ---------
Property and Casualty Insurance Services
Commercial Lines 1,624.1 1,612.3 1,651.1 1,669.4 1,696.7 1,619.9 1,654.9
Personal Lines 805.0 814.9 852.7 868.3 893.0 910.2 943.5
Other 2.2 3.7 2.9 4.3 4.5 2.1 2.0
--------- --------- --------- --------- --------- --------- ---------
Total P&C Insurance Services 2,431.3 2,430.9 2,506.7 2,542.0 2,594.2 2,532.2 2,600.4
--------- --------- --------- --------- --------- --------- ---------
Corporate and Other 21.0 22.8 31.6 1.0 58.4 19.5 9.4
--------- --------- --------- --------- --------- --------- ---------
Total Revenue 8,699.9 9,183.6 9,960.1 9,765.0 10,367.6 10,096.0 8,221.9
--------- --------- --------- --------- --------- --------- ---------
Interest Expense 2,377.7 2,792.0 3,080.0 3,192.9 3,177.4 3,332.9 3,294.3
--------- --------- --------- --------- --------- --------- ---------
Total Revenue, Net of Interest Expense $ 6,322.2 $ 6,391.6 $ 6,880.1 $ 6,572.1 $ 7,190.2 $ 6,763.1 $ 4,927.6
========= ========= ========= ========= ========= ========= =========
YTD YTD
3Q 3Q
1997 1998
--------- ---------
REVENUES
Investment Services
Investment banking and brokerage $15,467.3 $15,104.6
Asset management 592.8 695.9
--------- ---------
Total Investment Services 16,060.1 15,800.5
--------- ---------
Consumer Finance Services 1,204.8 1,541.5
--------- ---------
Life Insurance Services
Travelers Life and Annuity 1,999.6 2,292.5
Primerica Financial Services 1,134.8 1,236.9
--------- ---------
Total Life Insurance Services 3,134.4 3,529.4
--------- ---------
Property and Casualty Insurance Services
Commercial Lines 4,887.5 4,971.5
Personal Lines 2,472.6 2,746.7
Other 8.8 8.6
--------- ---------
Total P&C Insurance Services 7,368.9 7,726.8
--------- ---------
Corporate and Other 75.4 87.3
--------- ---------
Total Revenue 27,843.6 28,685.5
--------- ---------
Interest Expense 8,249.7 9,804.6
--------- ---------
Total Revenue, Net of Interest Expense $19,593.9 $18,880.9
========= =========
Page 20
TRAVELERS GROUP -- SEGMENT CORE BUSINESS INCOME
(In millions of dollars)
\ YTD
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1997 1997 1997 1997 1998 1998 1998
--------- --------- --------- --------- --------- --------- ---------
CORE INCOME
Investment Services
Investment banking and brokerage $ 367.5 $ 404.1 $ 449.0 $ 217.6 $ 442.5 $ 347.6 $ (395.4)
Asset management 44.4 48.6 59.4 55.5 60.3 62.5 70.5
--------- --------- --------- --------- --------- --------- ---------
Total Investment Services 411.9 452.7 508.4 273.1 502.8 410.1 (324.9)
--------- --------- --------- --------- --------- --------- ---------
Consumer Finance Services 47.3 54.1 65.4 70.2 59.4 69.2 83.3
--------- --------- --------- --------- --------- --------- ---------
Life Insurance Services
Travelers Life and Annuity 101.1 104.9 106.5 111.5 118.1 130.1 123.3
Primerica Financial Services 78.1 82.0 84.7 90.3 94.6 103.6 98.8
--------- --------- --------- --------- --------- --------- ---------
Total Life Insurance Services 179.2 186.9 191.2 201.8 212.7 233.7 222.1
--------- --------- --------- --------- --------- --------- ---------
Property and Casualty Insurance Services
Commercial Lines 193.5 209.3 223.9 218.9 224.6 227.9 230.6
Personal Lines 107.5 101.3 95.4 99.6 108.0 107.7 90.3
--------- --------- --------- --------- --------- --------- ---------
301.0 310.6 319.3 318.5 332.6 335.6 320.9
Financing costs and other (33.1) (30.2) (29.3) (30.6) (28.7) (29.3) (26.9)
Minority interest (48.3) (50.1) (48.0) (47.7) (50.8) (51.2) (49.1)
--------- --------- --------- --------- --------- --------- ---------
Total P&C Insurance Services 219.6 230.3 242.0 240.2 253.1 255.1 244.9
--------- --------- --------- --------- --------- --------- ---------
Total Core Business Income 858.0 924.0 1,007.0 785.3 1,028.0 968.1 225.4
--------- --------- --------- --------- --------- --------- ---------
Investment Portfolio Gains 8.9 5.7 82.0 144.0 86.5 27.8 25.4
Corporate and Other (51.8) (46.5) (60.3) (56.6) (21.1) (46.5) (51.6)
--------- --------- --------- --------- --------- --------- ---------
Total Core Income $ 815.1 $ 883.2 $ 1,028.7 $ 872.7 $ 1,093.4 $ 949.4 $ 199.2
========= ========= ========= ========= ========= ========= =========
YTD YTD
3Q 3Q
1997 1998
--------- ---------
CORE INCOME
Investment Services
Investment banking and brokerage $ 1,220.6 $ 394.7
Asset management 152.4 193.3
--------- ---------
Total Investment Services 1,373.0 588.0
--------- ---------
Consumer Finance Services 166.8 211.9
--------- ---------
Life Insurance Services
Travelers Life and Annuity 312.5 371.5
Primerica Financial Services 244.8 297.0
--------- ---------
Total Life Insurance Services 557.3 668.5
--------- ---------
Property and Casualty Insurance Services
Commercial Lines 626.7 683.1
Personal Lines 304.2 306.0
--------- ---------
930.9 989.1
Financing costs and other (92.6) (84.9)
Minority interest (146.4) (151.1)
--------- ---------
Total P&C Insurance Services 691.9 753.1
--------- ---------
Total Core Business Income 2,789.0 2,221.5
--------- ---------
Investment Portfolio Gains 96.6 139.7
Corporate and Other (158.6) (119.2)
--------- ---------
Total Core Income $ 2,727.0 $ 2,242.0
========= =========
Page 21
TRAVELERS GROUP -- INVESTMENT SERVICES -- Page 1
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q
1997 1997 1997 1997 1998 1998
--------- --------- --------- --------- --------- ---------
SALOMON SMITH BARNEY
Revenues:
Commissions $ 716.3 $ 685.6 $ 783.5 $ 781.5 $ 795.2 $ 783.7
Asset management and administration fees 389.1 398.6 448.2 479.2 497.6 553.8
Investment banking 483.8 475.3 596.7 562.4 628.1 639.9
Principal transactions 762.3 709.2 789.5 243.2 779.5 315.3
Other income 35.1 32.9 48.9 42.9 38.7 48.7
--------- --------- --------- --------- --------- ---------
Total noninterest revenues 2,386.6 2,301.6 2,666.8 2,109.2 2,739.1 2,341.4
--------- --------- --------- --------- --------- ---------
Interest and dividends 2,490.8 3,007.6 3,206.7 3,338.1 3,317.6 3,468.1
Interest expense 2,168.9 2,578.0 2,840.7 2,942.8 2,922.3 3,067.5
--------- --------- --------- --------- --------- ---------
Net interest and dividends 321.9 429.6 366.0 395.3 395.3 400.6
--------- --------- --------- --------- --------- ---------
Total revenues, net of interest expense 2,708.5 2,731.2 3,032.8 2,504.5 3,134.4 2,742.0
--------- --------- --------- --------- --------- ---------
Noninterest expenses:
Compensation and benefits 1,479.2 1,441.9 1,627.3 1,488.8 1,721.9 1,543.7
Communications 120.9 124.2 127.0 122.6 116.9 115.8
Occupancy and equipment 106.4 109.4 108.6 107.9 105.0 105.3
Floor brokerage and other production 85.8 86.7 98.8 117.7 109.6 105.7
Advertising and market development 62.5 69.0 70.9 73.1 69.7 68.3
Professional services 40.8 47.5 52.2 69.7 50.9 45.9
Other operating and administrative expenses 132.4 111.6 117.8 108.3 149.5 111.7
--------- --------- --------- --------- --------- ---------
Total noninterest expenses 2,028.0 1,990.3 2,202.6 2,088.1 2,323.5 2,096.4
--------- --------- --------- --------- --------- ---------
Core business income before income taxes 680.5 740.9 830.2 416.4 810.9 645.6
Provision for income taxes 268.6 288.2 321.8 143.3 308.1 235.5
--------- --------- --------- --------- --------- ---------
Core business income 411.9 452.7 508.4 273.1 502.8 410.1
Restructuring release (charge), net of tax -- -- -- (496.0) -- 191.2
--------- --------- --------- --------- --------- ---------
Net income (loss) $ 411.9 $ 452.7 $ 508.4 $ (222.9) $ 502.8 $ 601.3
========= ========= ========= ========= ========= =========
Total equity (in billions) $ 7.9 $ 8.1 $ 8.4 $ 8.5 $ 8.9 $ 9.3
Return on equity (1) 21.7% 23.2% 25.3% 12.5% 23.1% 18.2%
Pre-tax profit margin (1) 25.1% 27.1% 27.4% 16.6% 25.9% 23.5%
Non-compensation expenses as a percent of
net revenue (1) 20.3% 20.1% 19.0% 23.9% 19.2% 20.2%
YTD YTD
3Q 3Q 3Q
1998 1997 1998
--------- --------- ---------
SALOMON SMITH BARNEY
Revenues:
Commissions $ 796.9 $ 2,185.4 $ 2,375.8
Asset management and administration fees 562.6 1,235.9 1,614.0
Investment banking 530.6 1,555.8 1,798.6
Principal transactions (1,330.9) 2,261.0 (236.1)
Other income 36.3 116.9 123.7
--------- --------- ---------
Total noninterest revenues 595.5 7,355.0 5,676.0
--------- --------- ---------
Interest and dividends 3,338.8 8,705.1 10,124.5
Interest expense 3,013.3 7,587.6 9,003.1
--------- --------- ---------
Net interest and dividends 325.5 1,117.5 1,121.4
--------- --------- ---------
Total revenues, net of interest expense 921.0 8,472.5 6,797.4
--------- --------- ---------
Noninterest expenses:
Compensation and benefits 915.8 4,548.4 4,181.4
Communications 118.5 372.1 351.2
Occupancy and equipment 105.0 324.4 315.3
Floor brokerage and other production 110.3 271.3 325.6
Advertising and market development 79.8 202.4 217.8
Professional services 69.3 140.5 166.1
Other operating and administrative expenses 46.2 361.8 307.4
--------- --------- ---------
Total noninterest expenses 1,444.9 6,220.9 5,864.8
--------- --------- ---------
Core business income before income taxes (523.9) 2,251.6 932.6
Provision for income taxes (199.0) 878.6 344.6
--------- --------- ---------
Core business income (324.9) 1,373.0 588.0
Restructuring release (charge), net of tax -- -- 191.2
--------- --------- ---------
Net income (loss) $ (324.9) $ 1,373.0 $ 779.2
========= ========= =========
Total equity (in billions) $ 8.7 $ 8.4 $ 8.7
Return on equity (1) -14.5% 24.3% 8.8%
Pre-tax profit margin (1) -56.9% 26.6% 13.7%
Non-compensation expenses as a percent of
net revenue (1) 57.4% 19.7% 24.8%
(1) On core business income before restructuring release (charge).
Page 22
TRAVELERS GROUP -- INVESTMENT SERVICES -- Page 2
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q
1997 1997 1997 1997 1998 1998
--------- --------- --------- --------- --------- ---------
SALOMON SMITH BARNEY (cont'd)
Client Assets
Assets under fee-based management (in billions):
Money market funds $ 43.9 $ 44.3 $ 45.3 $ 46.6 $ 51.6 $ 51.1
Mutual funds 40.5 43.8 46.4 51.8 56.0 57.6
Managed accounts 46.3 52.2 55.0 54.2 57.4 60.9
--------- --------- --------- --------- --------- ---------
Salomon Smith Barney Asset Management 130.7 140.3 146.7 152.6 165.0 169.6
Financial Consultant managed accounts 8.5 9.8 11.1 11.6 13.3 14.3
--------- --------- --------- --------- --------- ---------
Total internally managed accounts 139.2 150.1 157.8 164.2 178.3 183.9
Consulting Group externally managed assets 46.7 53.1 58.4 59.7 67.1 69.3
--------- --------- --------- --------- --------- ---------
Total assets under fee-based management $ 185.9 $ 203.2 $ 216.2 $ 223.9 $ 245.4 $ 253.2
========= ========= ========= ========= ========= =========
Total client assets (in billions) $ 543.5 $ 593.0 $ 630.4 $ 654.0 $ 703.0 $ 724.3
Private Client
Registered Financial Consultants 10,430 10,359 10,288 10,319 10,321 10,494
Annualized retail gross production per FC (000) $ 392 $ 359 $ 428 $ 416 $ 452 $ 441
Domestic retail offices 443 438 434 430 432 439
Investment Banking and Public Finance
Underwriting (full credit to lead mgr.):
Debt and equity
Global volume $42,327.2 $47,639.4 $57,092.3 $43,748.7 $72,799.3 $75,856.0
Global market share 9.1% 9.6% 11.0% 9.8% 9.8% 10.4%
Rank 2 3 2 2 4 3
U.S. volume $37,723.2 $38,865.5 $52,685.3 $39,964.7 $66,263.7 $69,854.6
U.S. market share 13.0% 12.3% 14.1% 11.9% 13.0% 13.5%
Rank 2 2 2 2 2 2
Municipals (1)
Volume $ 5,173.6 $ 6,287.8 $ 6,580.4 $ 6,944.5 $ 8,343.7 $10,656.1
Market share 13.3% 11.4% 11.7% 10.9% 11.9% 13.9%
Rank 1 1 2 2 1 1
Capital Markets/Research
Number of institutional salespeople 907 943 952 878 877 854
Number of stocks in which markets are made 1,595 1,601 1,531 1,554 1,464 1,465
% of S&P groups covered by research 98% 98% 98% 99% 99% 99%
YTD YTD
3Q 3Q 3Q
1998 1997 1998
--------- --------- ---------
SALOMON SMITH BARNEY (cont'd)
Client Assets
Assets under fee-based management (in billions):
Money market funds $ 55.1 $ 45.3 $ 55.1
Mutual funds 53.5 46.4 53.5
Managed accounts 61.0 55.0 61.0
--------- --------- ---------
Salomon Smith Barney Asset Management 169.6 146.7 169.6
Financial Consultant managed accounts 13.8 11.1 13.8
--------- --------- ---------
Total internally managed accounts 183.4 157.8 183.4
Consulting Group externally managed assets 63.9 58.4 63.9
--------- --------- ---------
Total assets under fee-based management $ 247.3 $ 216.2 $ 247.3
========= ========= =========
Total client assets (in billions) $ 697.5 $ 630.4 $ 697.5
Private Client
Registered Financial Consultants 10,573 10,288 10,573
Annualized retail gross production per FC (000) $ 431 $ 393 $ 441
Domestic retail offices 442 434 442
Investment Banking and Public Finance
Underwriting (full credit to lead mgr.):
Debt and equity
Global volume $50,642.3 $147,058.9 $199,297.6
Global market share 9.1% 9.9% 9.8%
Rank 3 2 4
U.S. volume $43,018.7 $129,274.0 $179,137.0
U.S. market share 10.7% 13.2% 12.5%
Rank 3 2 2
Municipals (1)
Volume $ 9,336.1 $18,041.8 $28,335.9
Market share 14.5% 12.0% 13.4%
Rank 1 1 1
Capital Markets/Research
Number of institutional salespeople 869 952 869
Number of stocks in which markets are made 1,418 1,531 1,418
% of S&P groups covered by research 99% 98% 99%
(1) Total long term excluding private placement.
Page 23
TRAVELERS GROUP -- INVESTMENT SERVICES -- Page 3
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q
1997 1997 1997 1997 1998 1998
--------- --------- --------- --------- --------- ---------
SALOMON SMITH BARNEY
ASSET MANAGEMENT DIVISION (SSBAM)
Revenues:
Investment advisory, admin. & distribution fees $ 168.0 $ 172.7 $ 186.7 $ 190.0 $ 201.7 $ 214.1
Unit Investment Trust revenues - net 8.7 6.8 19.0 4.9 12.6 7.6
Other revenues 9.4 14.1 7.4 5.0 10.6 5.1
--------- --------- --------- --------- --------- ---------
Total revenues 186.1 193.6 213.1 199.9 224.9 226.8
--------- --------- --------- --------- --------- ---------
Expenses:
Employee compensation and benefits 35.4 34.8 38.1 37.3 41.9 44.0
Deferred commission amortization 32.8 31.1 31.9 28.2 34.8 31.5
Other expenses 44.4 47.3 44.7 42.4 48.4 47.8
--------- --------- --------- --------- --------- ---------
Total expenses 112.6 113.2 114.7 107.9 125.1 123.3
--------- --------- --------- --------- --------- ---------
Core business income before income taxes 73.5 80.4 98.4 92.0 99.8 103.5
Provision for income taxes 29.1 31.8 39.0 36.5 39.5 41.0
--------- --------- --------- --------- --------- ---------
Core business income $ 44.4 $ 48.6 $ 59.4 $ 55.5 $ 60.3 $ 62.5
========= ========= ========= ========= ========= =========
Pre-tax profit margin 39.5% 41.5% 46.2% 46.0% 44.4% 45.6%
SSBAM Assets under management (in billions):
Money market funds $ 43.9 $ 44.3 $ 45.3 $ 46.6 $ 51.6 $ 51.1
--------- --------- --------- --------- --------- ---------
Mutual funds:
Equity 18.6 20.6 22.3 27.0 29.9 30.3
Taxable Fixed 11.5 12.1 12.5 12.7 13.3 14.7
Tax Exempt Fixed 8.0 8.3 8.6 9.0 9.2 9.3
Annuities 2.4 2.8 3.0 3.1 3.6 3.3
--------- --------- --------- --------- --------- ---------
Total mutual funds 40.5 43.8 46.4 51.8 56.0 57.6
--------- --------- --------- --------- --------- ---------
Managed accounts
Private client 12.2 14.0 14.8 14.9 17.0 17.9
Institutional 34.1 38.2 40.2 39.3 40.4 43.0
--------- --------- --------- --------- --------- ---------
Total managed accounts 46.3 52.2 55.0 54.2 57.4 60.9
--------- --------- --------- --------- --------- ---------
Salomon Smith Barney Asset Management $ 130.7 $ 140.3 $ 146.7 $ 152.6 $ 165.0 $ 169.6
========= ========= ========= ========= ========= =========
Unit Investment Trusts held in client accounts $ 9.4 $ 9.3 $ 11.6 $ 11.8 $ 13.1 $ 12.9
Number of Morningstar 4- and 5-star funds 15 17 17 21 23 23
Consolidated Travelers Group
Assets Under Management (in billions)
Salomon Smith Barney Asset Management $ 130.7 $ 140.3 $ 146.7 $ 152.6 $ 165.0 $ 169.6
Financial consultant managed accounts 8.5 9.8 11.1 11.6 13.3 14.3
Travelers Life and Annuity (1) 21.4 22.2 22.9 23.8 25.2 24.3
--------- --------- --------- --------- --------- ---------
Total assets managed for third parties $ 160.6 $ 172.3 $ 180.7 $ 188.0 $ 203.5 $ 208.2
========= ========= ========= ========= ========= =========
YTD YTD
3Q 3Q 3Q
1998 1997 1998
--------- --------- ---------
SALOMON SMITH BARNEY
ASSET MANAGEMENT DIVISION (SSBAM)
Revenues:
Investment advisory, admin. & distribution fees $ 217.3 $ 527.4 $ 633.1
Unit Investment Trust revenues - net 17.5 34.5 37.7
Other revenues 9.4 30.9 25.1
--------- --------- ---------
Total revenues 244.2 592.8 695.9
--------- --------- ---------
Expenses:
Employee compensation and benefits 41.0 108.3 126.9
Deferred commission amortization 31.0 95.8 97.3
Other expenses 55.4 136.4 151.6
--------- --------- ---------
Total expenses 127.4 340.5 375.8
--------- --------- ---------
Core business income before income taxes 116.8 252.3 320.1
Provision for income taxes 46.3 99.9 126.8
--------- --------- ---------
Core business income $ 70.5 $ 152.4 $ 193.3
========= ========= =========
Pre-tax profit margin 47.8% 42.6% 46.0%
SSBAM Assets under management (in billions):
Money market funds $ 55.1 $ 45.3 $ 55.1
--------- --------- ---------
Mutual funds:
Equity 26.4 22.3 26.4
Taxable Fixed 14.4 12.5 14.4
Tax Exempt Fixed 9.6 8.6 9.6
Annuities 3.1 3.0 3.1
--------- --------- ---------
Total mutual funds 53.5 46.4 53.5
--------- --------- ---------
Managed accounts
Private client 17.0 14.8 17.0
Institutional 44.0 40.2 44.0
--------- --------- ---------
Total managed accounts 61.0 55.0 61.0
--------- --------- ---------
Salomon Smith Barney Asset Management $ 169.6 $ 146.7 $ 169.6
========= ========= =========
Unit Investment Trusts held in client accounts $ 12.4 $ 11.6 $ 12.4
Number of Morningstar 4- and 5-star funds 22 17 22
Consolidated Travelers Group
Assets Under Management (in billions)
Salomon Smith Barney Asset Management $ 169.6 $ 146.7 $ 169.6
Financial consultant managed accounts 13.8 11.1 13.8
Travelers Life and Annuity (1) 25.7 22.9 25.7
--------- --------- ---------
Total assets managed for third parties $ 209.1 $ 180.7 $ 209.1
========= ========= =========
(1) Part of the Life Insurance Services segment.
Page 24
TRAVELERS GROUP -- CONSUMER FINANCE SERVICES
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q
1997 1997 1997 1997 1998
--------- --------- --------- --------- ---------
REVENUES $ 377.1 $ 379.6 $ 448.1 $ 483.0 $ 485.0
CORE BUSINESS INCOME $ 47.3 $ 54.1 $ 65.4 $ 70.2 $ 59.4
Owned basis:
Net receivables:
Real estate-secured loans (1) $ 3,698.2 $ 3,992.4 $ 4,911.6 $ 5,107.6 $ 5,325.8
Personal loans (2) 3,257.2 3,328.0 3,817.7 3,922.2 3,960.5
Credit cards - owned 972.2 1,166.3 1,163.3 1,164.6 1,225.4
Sales finance and other 519.0 554.7 759.8 857.0 874.8
--------- --------- --------- --------- ---------
Consumer finance receivables,
net of unearned finance charges 8,446.6 9,041.4 10,652.4 11,051.4 11,386.5
Accrued interest receivable 51.7 56.0 74.0 85.6 88.9
Allowance for credit losses (250.9) (263.4) (325.1) (321.4) (331.4)
--------- --------- --------- --------- ---------
Consumer finance receivables, net $ 8,247.4 $ 8,834.0 $10,401.3 $10,815.6 $11,144.0
========= ========= ========= ========= =========
Receivables held for sale (3) $ -- $ -- $ -- $ 186.0 $ --
Number of offices 857 855 1,057 1,026 1,025
Number of credit card accounts 836,400 923,700 905,500 983,600 1,079,200
Average yield 14.65% 14.42% 14.57% 14.68% 14.18%
Average net interest margin 8.17% 7.93% 8.13% 8.31% 7.77%
Charge-off rate 2.95% 2.82% 2.50% 2.42% 2.75%
60+ days past due as % of receivables 2.25% 2.14% 2.17% 2.35% 2.33%
Reserves as % of net receivables 2.97% 2.91% 3.05% 2.91% 2.91%
Managed basis:
Consumer finance receivables, net of unearned
finance charges $ 8,446.6 $ 9,041.4 $10,652.4 $11,051.4 $11,386.5
Receivables held for sale -- -- -- 186.0 --
Credit card receivables securitized (4) -- -- -- -- 255.1
--------- --------- --------- --------- ---------
Managed receivables $ 8,446.6 $ 9,041.4 $10,652.4 $11,237.4 $11,641.6
========= ========= ========= ========= =========
Managed credit card receivables $ 972.2 $ 1,166.3 $ 1,163.3 $ 1,350.6 $ 1,480.5
Average yield 14.65% 14.42% 14.57% 14.68% 14.13%
Average net interest margin 8.17% 7.93% 8.13% 8.31% 7.74%
Charge-off rate 2.95% 2.82% 2.50% 2.42% 2.76%
60+ days past due as % of receivables 2.25% 2.14% 2.17% 2.35% 2.31%
(1) Includes fully secured $.M.A.R.T. receivables,
as follows: $ 1,307.8 $ 1,510.8 $ 1,689.1 $ 1,887.9 $ 2,052.8
(2) Includes $.A.F.E. and partially secured $.M.A.R.T
receivables, as follows: $ 391.3 $ 389.8 $ 381.8 $ 375.8 $ 367.7
YTD YTD
2Q 3Q 3Q 3Q
1998 1998 1997 1998
--------- --------- --------- ---------
REVENUES $ 514.2 $ 542.3 $ 1,204.8 $ 1,541.5
CORE BUSINESS INCOME $ 69.2 $ 83.3 $ 166.8 $ 211.9
Owned basis:
Net receivables:
Real estate-secured loans (1) $ 5,674.5 $ 6,085.7 $ 4,911.6 $ 6,085.7
Personal loans (2) 4,099.1 4,231.9 3,817.7 4,231.9
Credit cards - owned 1,407.6 1,407.4 1,163.3 1,407.4
Sales finance and other 902.3 944.9 759.8 944.9
--------- --------- --------- ---------
Consumer finance receivables,
net of unearned finance charges 12,083.5 12,669.9 10,652.4 12,669.9
Accrued interest receivable 87.2 96.2 74.0 96.2
Allowance for credit losses (347.1) (363.8) (325.1) (363.8)
--------- --------- --------- ---------
Consumer finance receivables, net $11,823.6 $12,402.3 $10,401.3 $12,402.3
========= ========= ========= =========
Receivables held for sale (3) $ -- $ 84.9 $ -- $ 84.9
Number of offices 1,007 995 1,057 995
Number of credit card accounts 1,155,600 1,198,800 905,500 1,198,800
Average yield 14.15% 14.21% 14.55% 14.18%
Average net interest margin 7.80% 7.91% 8.08% 7.86%
Charge-off rate 2.66% 2.39% 2.74% 2.60%
60+ days past due as % of receivables 2.23% 2.27% 2.17% 2.27%
Reserves as % of net receivables 2.87% 2.87% 3.05% 2.87%
Managed basis:
Consumer finance receivables, net of unearned
finance charges $12,083.5 $12,669.9 $10,652.4 $12,669.9
Receivables held for sale -- 84.9 -- 84.9
Credit card receivables securitized (4) 254.6 254.3 -- 254.3
--------- --------- --------- ---------
Managed receivables $12,338.1 $13,009.1 $10,652.4 $13,009.1
========= ========= ========= =========
Managed credit card receivables $ 1,662.2 $ 1,746.6 $ 1,163.3 $ 1,746.6
Average yield 14.09% 14.15% 14.55% 14.12%
Average net interest margin 7.75% 7.87% 8.08% 7.81%
Charge-off rate 2.67% 2.41% 2.74% 2.61%
60+ days past due as % of receivables 2.21% 2.25% 2.17% 2.25%
(1) Includes fully secured $.M.A.R.T. receivables,
as follows: $ 2,272.8 $ 2,432.1 $ 1,689.1 $ 2,432.1
(2) Includes $.A.F.E. and partially secured $.M.A.R.T
receivables, as follows: $ 358.9 $ 353.1 $ 381.8 $ 353.1
(3) Consumer Finance Services classifies credit card receivables intended for
sale as loans held for sale, with net credit losses charged to other
revenue. Owned basis average yields and average net interest margin
include receivables held for sale; charge-off rate, 60+ as %, and reserves
as % exclude receivables held for sale.
(4) On March 6, 1998, the company securitized $255.1 million of credit card
receivables.
Note: Financial data for Security Pacific Financial Services is included from
the date of acquisition (July 31, 1997).
Page 25
TRAVELERS GROUP -- LIFE INSURANCE SERVICES -- Page 1
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q
1997 1997 1997 1997 1998 1998
--------- --------- --------- --------- --------- ---------
REVENUES $ 993.1 $ 1,041.1 $ 1,100.2 $ 1,291.7 $ 1,173.3 $ 1,220.6
CORE BUSINESS INCOME
Travelers Life and Annuity $ 101.1 $ 104.9 $ 106.5 $ 111.5 $ 118.1 $ 130.1
Primerica Financial Services 78.1 82.0 84.7 90.3 94.6 103.6
--------- --------- --------- --------- --------- ---------
Total $ 179.2 $ 186.9 $ 191.2 $ 201.8 $ 212.7 $ 233.7
========= ========= ========= ========= ========= =========
Statutory data:
Travelers Insurance Company
Statutory capital and surplus $ 3,555.5 $ 3,625.9 $ 3,808.4 $ 4,117.3 $ 4,142.6 $ 4,370.3
Surplus to liabilities ratio 17.7% 18.0% 18.9% 19.9% 19.4% 20.0%
YTD YTD
3Q 3Q 3Q
1998 1997 1998
--------- --------- ---------
REVENUES $ 1,135.5 $ 3,134.4 $ 3,529.4
CORE BUSINESS INCOME
Travelers Life and Annuity $ 123.3 $ 312.5 $ 371.5
Primerica Financial Services 98.8 244.8 297.0
--------- --------- ---------
Total $ 222.1 $ 557.3 $ 668.5
========= ========= =========
Statutory data:
Travelers Insurance Company
Statutory capital and surplus $ 4,230.5 $ 3,808.4 $ 4,230.5
Surplus to liabilities ratio 18.2% 18.9% 18.2%
Page 26
TRAVELERS GROUP -- LIFE INSURANCE SERVICES -- Page 2
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q
1997 1997 1997 1997 1998 1998
--------- --------- --------- --------- --------- ---------
TRAVELERS LIFE AND ANNUITY
REVENUES $ 617.9 $ 665.7 $ 716.0 $ 890.3 $ 771.9 $ 799.6
CORE BUSINESS INCOME $ 101.1 $ 104.9 $ 106.5 $ 111.5 $ 118.1 $ 130.1
Pre-tax contribution by source:
Deferred and payout annuities $ 75.8 $ 73.9 $ 74.7 $ 86.2 $ 87.6 $ 93.8
Group annuities 22.7 26.6 26.2 25.0 31.5 28.3
Life and long term care insurance 35.0 36.1 35.0 37.4 37.9 39.3
Other (includes run-off and return on excess capital) 19.7 23.8 26.9 20.2 24.1 37.6
--------- --------- --------- --------- --------- ---------
Total $ 153.2 $ 160.4 $ 162.8 $ 168.8 $ 181.1 $ 199.0
========= ========= ========= ========= ========= =========
Deferred annuities:
Number of annuities in force (000):
Fixed 402.9 415.9 411.8 408.9 404.9 398.2
Variable 293.5 308.7 326.7 381.0 413.1 439.0
--------- --------- --------- --------- --------- ---------
Total 696.4 724.6 738.5 789.9 818.0 837.2
========= ========= ========= ========= ========= =========
Number of annuities issued (000):
Fixed 7.8 10.2 5.2 6.7 5.4 4.4
Variable 29.1 32.4 33.5 34.4 37.7 35.9
--------- --------- --------- --------- --------- ---------
Total 36.9 42.6 38.7 41.1 43.1 40.3
========= ========= ========= ========= ========= =========
Net written premiums & deposits:
Fixed $ 144.1 $ 241.7 $ 142.4 $ 250.7 $ 232.7 $ 187.2
Variable 429.7 386.0 431.9 527.8 587.1 587.1
--------- --------- --------- --------- --------- ---------
Total $ 573.8 $ 627.7 $ 574.3 $ 778.5 $ 819.8 $ 774.3
========= ========= ========= ========= ========= =========
Policyholder account balances & benefit reserves: (1)
Fixed $ 7,240.8 $ 7,340.5 $ 7,310.8 $ 7,358.7 $ 7,411.6 $ 7,361.8
Variable 6,308.7 7,376.0 8,307.9 8,704.9 10,132.8 10,788.7
--------- --------- --------- --------- --------- ---------
Total $13,549.5 $14,716.5 $15,618.7 $16,063.6 $17,544.4 $18,150.5
========= ========= ========= ========= ========= =========
Payout annuities:
Net written premiums & deposits $ 54.7 $ 68.2 $ 49.0 $ 138.0 $ 81.0 $ 106.8
Policyholder account balances & benefit reserves $ 4,403.6 $ 4,426.0 $ 4,429.7 $ 4,522.2 $ 4,558.1 $ 4,602.2
GIC and other annuities:
Net written premiums & deposits (2) $ 592.4 $ 563.8 $ 301.5 $ 651.0 $ 778.9 $ 921.6
Policyholder account balances & benefit reserves: (1)
Guaranteed investment contracts $ 1,697.6 $ 1,976.1 $ 2,026.5 $ 2,367.6 $ 2,633.2 $ 3,018.1
Other group annuities 4,991.3 5,122.0 5,212.4 5,051.4 5,040.1 5,052.9
--------- --------- --------- --------- --------- ---------
Total $ 6,688.9 $ 7,098.1 $ 7,238.9 $ 7,419.0 $ 7,673.3 $ 8,071.0
========= ========= ========= ========= ========= =========
YTD YTD
3Q 3Q 3Q
1998 1997 1998
--------- --------- ---------
TRAVELERS LIFE AND ANNUITY
REVENUES $ 721.0 $ 1,999.6 $ 2,292.5
CORE BUSINESS INCOME $ 123.3 $ 312.5 $ 371.5
Pre-tax contribution by source:
Deferred and payout annuities $ 82.0 $ 224.4 $ 263.4
Group annuities 36.4 75.5 96.2
Life and long term care insurance 34.6 106.1 111.8
Other (includes run-off and return on excess capital) 37.6 70.4 99.3
--------- --------- ---------
Total $ 190.6 $ 476.4 $ 570.7
========= ========= =========
Deferred annuities:
Number of annuities in force (000):
Fixed 392.5 411.8 392.5
Variable 466.4 326.7 466.4
--------- --------- ---------
Total 858.9 738.5 858.9
========= ========= =========
Number of annuities issued (000):
Fixed 3.5 23.2 13.3
Variable 36.4 95.0 110.0
--------- --------- ---------
Total 39.9 118.2 123.3
========= ========= =========
Net written premiums & deposits:
Fixed $ 181.0 $ 528.2 $ 600.9
Variable 691.9 1,247.6 1,866.1
--------- --------- ---------
Total $ 872.9 $ 1,775.8 $ 2,467.0
========= ========= =========
Policyholder account balances & benefit reserves: (1)
Fixed $ 7,339.3 $ 7,310.8 $ 7,339.3
Variable 10,178.9 8,307.9 10,178.9
--------- --------- ---------
Total $17,518.2 $15,618.7 $17,518.2
========= ========= =========
Payout annuities:
Net written premiums & deposits $ 76.1 $ 171.9 $ 263.9
Policyholder account balances & benefit reserves $ 4,626.9 $ 4,429.7 $ 4,626.9
GIC and other annuities:
Net written premiums & deposits (2) $ 1,005.4 $ 1,457.7 $ 2,705.9
Policyholder account balances & benefit reserves: (1)
Guaranteed investment contracts $ 3,748.2 $ 2,026.5 $ 3,748.2
Other group annuities 4,962.6 5,212.4 4,962.6
--------- --------- ---------
Total $ 8,710.8 $ 7,238.9 $ 8,710.8
========= ========= =========
(1) Includes general account, separate accounts and managed funds.
(2) Excludes deposits of $33.0, $136.0, $182.0 and $2.0 in the 1997 first,
second, third and fourth quarters, respectively, and $13.0, $197.0 and
$14.0 in the 1998 first, second and third quarters, respectively, related
to Travelers plans previously managed externally.
Page 27
TRAVELERS GROUP -- LIFE INSURANCE SERVICES -- Page 3
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q
1997 1997 1997 1997 1998 1998
-------- -------- -------- -------- -------- --------
TRAVELERS LIFE AND ANNUITY (cont'd)
Individual life insurance:
Life insurance in force (in billions, face amt.):
Term $ 29.5 $ 29.6 $ 29.7 $ 30.1 $ 30.6 $ 30.9
Permanent (universal and whole life) 21.0 21.1 21.2 21.5 21.8 22.3
-------- -------- -------- -------- -------- --------
Total $ 50.5 $ 50.7 $ 50.9 $ 51.6 $ 52.4 $ 53.2
======== ======== ======== ======== ======== ========
Number of life policies in force (000) 540.2 535.3 530.1 528.3 525.2 522.9
Life insurance issued (in billions, face amt.) $ 1.5 $ 1.5 $ 1.5 $ 2.0 $ 2.0 $ 2.1
Number of life policies issued (000) 5.4 5.7 5.2 8.2 7.1 7.9
Net written premiums and deposits:
Direct periodic premiums and deposits $ 71.2 $ 68.5 $ 71.6 $ 79.1 $ 76.2 $ 78.2
Single premium deposits 11.9 13.7 13.6 17.2 23.8 20.5
Reinsurance (13.3) (14.2) (15.7) (15.1) (14.8) (16.0)
-------- -------- -------- -------- -------- --------
Total $ 69.8 $ 68.0 $ 69.5 $ 81.2 $ 85.2 $ 82.7
======== ======== ======== ======== ======== ========
Policyholder account balances & benefit reserves $2,192.8 $2,222.1 $2,257.3 $2,283.4 $2,327.1 $2,360.0
Individual long term care insurance:
Number of policies in force (000) 84.3 90.6 96.2 102.1 107.7 113.6
Net earned premiums $ 34.9 $ 39.1 $ 41.2 $ 44.1 $ 45.6 $ 48.7
Net written premiums $ 42.5 $ 43.3 $ 43.7 $ 54.3 $ 44.5 $ 53.7
All businesses:
Net investment income $ 439.9 $ 459.9 $ 463.2 $ 472.1 $ 480.3 $ 496.4
Interest credited to contractholders $ 197.6 $ 204.6 $ 209.6 $ 217.7 $ 215.0 $ 210.3
YTD YTD
3Q 3Q 3Q
1998 1997 1998
-------- -------- --------
TRAVELERS LIFE AND ANNUITY (cont'd)
Individual life insurance:
Life insurance in force (in billions, face amt.):
Term $ 31.4 $ 29.7 $ 31.4
Permanent (universal and whole life) 22.8 21.2 22.8
-------- -------- --------
Total $ 54.2 $ 50.9 $ 54.2
======== ======== ========
Number of life policies in force (000) 520.0 530.1 520.0
Life insurance issued (in billions, face amt.) $ 2.2 $ 4.5 $ 6.3
Number of life policies issued (000) 6.8 16.3 21.8
Net written premiums and deposits:
Direct periodic premiums and deposits $ 77.9 $ 211.3 $ 232.3
Single premium deposits 17.1 39.2 61.4
Reinsurance (16.5) (43.2) (47.3)
-------- -------- --------
Total $ 78.5 $ 207.3 $ 246.4
======== ======== ========
Policyholder account balances & benefit reserves $2,366.9 $2,257.3 $2,366.9
Individual long term care insurance:
Number of policies in force 118.5 96.2 118.5
Net earned premiums $ 51.8 $ 115.2 $ 146.1
Net written premiums $ 53.3 $ 129.5 $ 151.5
All businesses:
Net investment income $ 474.0 $1,363.0 $1,450.7
Interest credited to contractholders $ 220.3 $ 611.8 $ 645.6
Page 28
TRAVELERS GROUP -- LIFE INSURANCE SERVICES -- Page 4
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q
1997 1997 1997 1997 1998 1998
---------- ---------- ---------- ---------- ---------- ----------
PRIMERICA FINANCIAL SERVICES
REVENUES $ 375.2 $ 375.4 $ 384.2 $ 401.4 $ 401.4 $ 421.0
CORE BUSINESS INCOME
Life insurance $ 64.0 $ 68.7 $ 67.5 $ 71.4 $ 75.0 $ 80.6
Other financial products 14.1 13.3 17.2 18.9 19.6 23.0
---------- ---------- ---------- ---------- ---------- ----------
Total core business income $ 78.1 $ 82.0 $ 84.7 $ 90.3 $ 94.6 $ 103.6
========== ========== ========== ========== ========== ==========
Face value (in billions) of:
Life insurance issued $ 12.0 $ 14.1 $ 13.1 $ 13.4 $ 13.0 $ 15.8
Life insurance in force $ 361.5 $ 365.4 $ 368.1 $ 369.9 $ 372.5 $ 377.5
Number of life policies issued (000) 54.3 62.8 56.7 55.1 51.1 61.2
Number of life policies in force (000) 2,141.0 2,149.8 2,149.7 2,146.2 2,141.6 2,151.1
Annualized issued premiums $ 41.1 $ 47.9 $ 44.5 $ 43.1 $ 40.8 $ 48.7
Direct premiums $ 300.3 $ 303.2 $ 304.4 $ 305.8 $ 306.2 $ 312.3
Earned premiums:
PFS Individual term life $ 241.2 $ 243.5 $ 242.3 $ 240.1 $ 244.7 $ 248.8
Other 17.8 15.8 14.9 19.1 15.5 17.1
---------- ---------- ---------- ---------- ---------- ----------
Total $ 259.0 $ 259.3 $ 257.2 $ 259.2 $ 260.2 $ 265.9
========== ========== ========== ========== ========== ==========
Mutual fund sales at NAV:
Salomon Smith Barney Asset Management funds $ 317.3 $ 332.5 $ 316.5 $ 331.0 $ 335.6 $ 400.7
Other funds 203.8 200.9 197.9 202.0 228.8 308.6
---------- ---------- ---------- ---------- ---------- ----------
Total U.S. mutual fund sales 521.1 533.4 514.4 533.0 564.4 709.3
Mutual fund sales - Canada 200.9 136.0 121.5 129.1 204.3 123.9
---------- ---------- ---------- ---------- ---------- ----------
Total mutual fund sales $ 722.0 $ 669.4 $ 635.9 $ 662.1 $ 768.7 $ 833.2
========== ========== ========== ========== ========== ==========
Cash advanced on $.M.A.R.T. and $.A.F.E. loans (1) $ 289.4 $ 338.2 $ 315.5 $ 354.7 $ 316.6 $ 410.6
Variable annuity net written premiums and deposits $ 54.2 $ 79.8 $ 100.6 $ 111.9 $ 126.3 $ 175.2
SECURE net written premiums (2) $ 9.7 $ 15.2 $ 19.5 $ 28.2 $ 38.0 $ 55.8
Agents licensed for:
Life insurance 83,248 82,447 79,992 79,508 76,835 77,274
Mutual funds 28,736 29,453 29,956 27,464 28,475 28,864
$.M.A.R.T. / $.A.F.E. loans 89,679 94,117 98,847 93,228 96,188 96,422
Variable annuities 8,403 9,653 11,110 12,596 12,924 13,169
Home & auto insurance 6,638 7,228 7,990 8,658 10,051 11,123
Financial Needs Analyses submitted 88,010 111,482 132,141 122,169 140,617 130,549
YTD YTD
3Q 3Q 3Q
1998 1997 1998
---------- ---------- ----------
PRIMERICA FINANCIAL SERVICES
REVENUES $ 414.5 $ 1,134.8 $ 1,236.9
CORE BUSINESS INCOME
Life insurance $ 76.8 $ 200.2 $ 232.4
Other financial products 22.0 44.6 64.6
---------- ---------- ----------
Total core business income $ 98.8 $ 244.8 $ 297.0
========== ========== ==========
Face value (in billions) of:
Life insurance issued $ 14.2 $ 39.2 $ 43.0
Life insurance in force $ 380.6 $ 368.1 $ 380.6
Number of life policies issued (000) 55.6 173.8 167.9
Number of life policies in force (000) 2,153.1 2,149.7 2,153.1
Annualized issued premiums $ 45.0 $ 133.5 $ 134.5
Direct premiums $ 311.6 $ 907.9 $ 930.1
Earned premiums:
PFS Individual term life $ 246.1 $ 727.0 $ 739.6
Other 15.1 48.5 47.7
---------- ---------- ----------
Total $ 261.2 $ 775.5 $ 787.3
========== ========== ==========
Mutual fund sales at NAV:
Salomon Smith Barney Asset Management funds $ 383.9 $ 966.3 $ 1,120.2
Other funds 249.8 602.6 787.2
---------- ---------- ----------
Total U.S. mutual fund sales 633.7 1,568.9 1,907.4
Mutual fund sales - Canada 91.3 458.4 419.5
---------- ---------- ----------
Total mutual fund sales $ 725.0 $ 2,027.3 $ 2,326.9
========== ========== ==========
Cash advanced on $.M.A.R.T. and $.A.F.E. loans (1) $ 351.1 $ 943.1 $ 1,078.3
Variable annuity net written premiums and deposits $ 171.9 $ 234.6 $ 473.4
SECURE net written premiums (2) $ 60.8 $ 44.4 $ 154.6
Agents licensed for:
Life insurance 79,081 79,992 79,081
Mutual funds 29,176 29,956 29,176
$.M.A.R.T. / $.A.F.E. loans 117,704 98,847 117,704
Variable annuities 11,839 11,110 11,839
Home & auto insurance 12,683 7,990 12,683
Financial Needs Analyses submitted 132,791 331,633 403,957
(1) The $.M.A.R.T. and $.A.F.E. loan products are marketed by PFS; the
receivables are reflected in the assets of Consumer Finance Services.
(2) The SECURE property casualty insurance products are marketed by PFS; the
premiums are reflected in the operating earnings of Travelers Property
Casualty Corp.
Page 29
TRAVELERS GROUP -- PROPERTY & CASUALTY INSURANCE SERVICES -- Page 1
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q
1997 1997 1997 1997 1998 1998
-------- -------- -------- -------- -------- --------
TOTAL P&C INSURANCE
REVENUES
Commercial Lines $1,624.1 $1,612.3 $1,651.1 $1,669.4 $1,696.7 $1,619.9
Personal Lines 805.0 814.9 852.7 868.3 893.0 910.2
Other 2.2 3.7 2.9 4.3 4.5 2.1
-------- -------- -------- -------- -------- --------
Total $2,431.3 $2,430.9 $2,506.7 $2,542.0 $2,594.2 $2,532.2
======== ======== ======== ======== ======== ========
CORE BUSINESS INCOME
Commercial Lines $ 193.5 $ 209.3 $ 223.9 $ 218.9 $ 224.6 $ 227.9
Personal Lines 107.5 101.3 95.4 99.6 108.0 107.7
-------- -------- -------- -------- -------- --------
301.0 310.6 319.3 318.5 332.6 335.6
Financing costs and other (33.1) (30.2) (29.3) (30.6) (28.7) (29.3)
Minority interest (48.3) (50.1) (48.0) (47.7) (50.8) (51.2)
-------- -------- -------- -------- -------- --------
Total $ 219.6 $ 230.3 $ 242.0 $ 240.2 $ 253.1 $ 255.1
======== ======== ======== ======== ======== ========
GAAP Consolidated Statement of Operations
Revenues:
Premiums $1,799.9 $1,811.8 $1,806.0 $1,807.8 $1,898.2 $1,902.8
Net investment income 499.7 505.3 527.6 515.8 507.9 519.1
Fee income 97.0 91.4 90.4 85.9 82.0 76.9
Realized investment gains (losses) 8.1 (6.8) 56.7 111.0 66.4 9.6
Other revenues 24.4 25.5 23.1 17.2 35.2 21.7
-------- -------- -------- -------- -------- --------
Total revenues 2,429.1 2,427.2 2,503.8 2,537.7 2,589.7 2,530.1
-------- -------- -------- -------- -------- --------
Claims and expenses:
Claims and claim adjustment expenses* 1,366.0 1,365.5 1,344.8 1,357.0 1,427.9 1,430.8
Policyholder dividends 7.1 9.6 17.6 15.9 13.0 13.2
Amortization of deferred acquisition costs 283.1 279.2 286.0 278.7 285.9 303.7
General and administrative expenses 332.0 333.9 343.3 337.0 332.6 311.3
-------- -------- -------- -------- -------- --------
Total expenses 1,988.2 1,988.2 1,991.7 1,988.6 2,059.4 2,059.0
-------- -------- -------- -------- -------- --------
Income before federal income taxes 440.9 439.0 512.1 549.1 530.3 471.1
Federal income taxes 134.7 132.8 156.0 158.0 154.5 129.3
-------- -------- -------- -------- -------- --------
Net income from property casualty operations 306.2 306.2 356.1 391.1 375.8 341.8
Financing costs and other (33.1) (30.2) (29.3) (30.6) (28.7) (29.3)
-------- -------- -------- -------- -------- --------
Total net income** $ 273.1 $ 276.0 $ 326.8 $ 360.5 $ 347.1 $ 312.5
======== ======== ======== ======== ======== ========
* Includes pre-tax:
Catastrophe losses, net of reinsurance $ 7.5 $ 7.3 $ -- $ 8.2 $ 13.2 $ 36.2
Asbestos and environmental losses $ 30.0 $ 29.0 $ 40.0 $ 35.4 $ 31.0 $ 30.0
** Includes, net of taxes:
Net investment income $ 347.3 $ 354.2 $ 369.5 $ 370.1 $ 364.8 $ 375.5
Realized investment gains (losses) $ 5.2 $ (4.4) $ 36.8 $ 72.6 $ 43.2 $ 6.2
YTD YTD
3Q 3Q 3Q
1998 1997 1998
-------- -------- --------
TOTAL P&C INSURANCE
REVENUES
Commercial Lines $1,654.9 $4,887.5 $4,971.5
Personal Lines 943.5 2,472.6 2,746.7
Other 2.0 8.8 8.6
-------- -------- --------
Total $2,600.4 $7,368.9 $7,726.8
======== ======== ========
CORE BUSINESS INCOME
Commercial Lines $ 230.6 $ 626.7 $ 683.1
Personal Lines 90.3 304.2 306.0
-------- -------- --------
320.9 930.9 989.1
Financing costs and other (26.9) (92.6) (84.9)
Minority interest (49.1) (146.4) (151.1)
-------- -------- --------
Total $ 244.9 $ 691.9 $ 753.1
======== ======== ========
GAAP Consolidated Statement of Operations
Revenues:
Premiums $1,974.9 $5,417.7 $5,775.9
Net investment income 500.4 1,532.6 1,527.4
Fee income 74.2 278.8 233.1
Realized investment gains (losses) 32.5 58.0 108.5
Other revenues 16.4 73.0 73.3
-------- -------- --------
Total revenues 2,598.4 7,360.1 7,718.2
-------- -------- --------
Claims and expenses:
Claims and claim adjustment expenses* 1,517.7 4,076.3 4,376.4
Policyholder dividends 13.3 34.3 39.5
Amortization of deferred acquisition costs 304.7 848.3 894.3
General and administrative expenses 297.0 1,009.2 940.9
-------- -------- --------
Total expenses 2,132.7 5,968.1 6,251.1
-------- -------- --------
Income before federal income taxes 465.7 1,392.0 1,467.1
Federal income taxes 123.6 423.5 407.4
-------- -------- --------
Net income from property casualty operations 342.1 968.5 1,059.7
Financing costs and other (26.8) (92.6) (84.8)
-------- -------- --------
Total net income** $ 315.3 $ 875.9 $ 974.9
======== ======== ========
* Includes pre-tax:
Catastrophe losses, net of reinsurance $ 56.5 $ 14.8 $ 105.9
Asbestos and environmental losses $ 28.0 $ 99.0 $ 89.0
** Includes, net of taxes:
Net investment income $ 366.1 $1,071.0 $1,106.4
Realized investment gains (losses) $ 21.3 $ 37.6 $ 70.7
Page 30
TRAVELERS GROUP -- PROPERTY & CASUALTY INSURANCE SERVICES -- Page 2
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q
1997 1997 1997 1997 1998 1998
--------- --------- --------- --------- --------- ---------
TOTAL P&C INSURANCE (cont'd)
Statutory underwriting
Net written premiums (1) $ 2,113.3 $ 1,885.6 $ 1,951.2 $ 1,881.5 $ 2,017.8 $ 1,994.7
Net earned premiums $ 1,800.0 $ 1,811.5 $ 1,805.4 $ 1,808.8 $ 1,897.0 $ 1,896.1
Losses and loss adjustment expenses 1,325.8 1,316.3 1,295.9 1,292.9 1,383.2 1,387.7
Other underwriting expenses 591.2 571.2 600.9 574.9 572.0 587.7
--------- --------- --------- --------- --------- ---------
Statutory underwriting loss (117.0) (76.0) (91.4) (59.0) (58.2) (79.3)
Policyholder dividends 3.0 18.8 15.2 50.1 13.0 13.2
--------- --------- --------- --------- --------- ---------
Statutory underwriting loss after policyholder
dividends $ (120.0) $ (94.8) $ (106.6) $ (109.1) $ (71.2) $ (92.5)
========= ========= ========= ========= ========= =========
Reserves for losses and loss adjustment expenses $21,728.3 $21,675.1 $21,559.4 $21,396.2 $21,323.2 $21,141.8
Decrease in reserves $ (83.6) $ (53.2) $ (115.7) $ (163.2) $ (73.0) $ (181.4)
Statutory surplus $ 5,552.0 $ 5,773.6 $ 6,004.8 $ 6,188.2 $ 6,409.1 $ 6,640.4
Net written premiums/surplus (2) 1.35:1 1.33:1 1.29:1 1.27:1 1.21:1 1.18:1
Statutory combined ratio: (1), (3)
Loss and loss adjustment expense ratio 73.7% 72.7% 71.8% 71.5% 72.9% 73.2%
Other underwriting expense ratio 28.0% 30.3% 30.8% 30.6% 28.3% 29.5%
--------- --------- --------- --------- --------- ---------
Combined ratio 101.7% 103.0% 102.6% 102.1% 101.2% 102.7%
========= ========= ========= ========= ========= =========
YTD YTD
3Q 3Q 3Q
1998 1997 1998
--------- --------- ---------
TOTAL P&C INSURANCE (cont'd)
Statutory underwriting
Net written premiums (1) $ 2,076.9 $ 5,950.1 $ 6,089.4
Net earned premiums $ 1,974.9 $ 5,416.9 $ 5,768.0
Losses and loss adjustment expenses 1,477.5 3,938.0 4,248.4
Other underwriting expenses 585.2 1,763.3 1,744.9
--------- --------- ---------
Statutory underwriting loss (87.8) (284.4) (225.3)
Policyholder dividends 13.3 37.0 39.5
--------- --------- ---------
Statutory underwriting loss after policyholder
dividends $ (101.1) $ (321.4) $ (264.8)
========= ========= =========
Reserves for losses and loss adjustment expenses $20,958.4 $21,559.4 $20,958.4
Decrease in reserves $ (183.4) $ (252.5) $ (437.8)
Statutory surplus $ 6,754.3 $ 6,004.8 $ 6,754.3
Net written premiums/surplus (2) 1.18:1 1.29:1 1.18:1
Statutory combined ratio: (1), (3)
Loss and loss adjustment expense ratio 74.8% 72.7% 73.7%
Other underwriting expense ratio 28.2% 29.6% 28.7%
--------- --------- ---------
Combined ratio 103.0% 102.3% 102.4%
========= ========= =========
(1) First quarter 1997 net written premiums include an increase of $142.4
million due to a change to conform Aetna P&C's and Travelers P&C's methods
of recording net written premiums, and an increase of $68.7 million due to
an adjustment associated with a reinsurance transaction. Excluding these
transactions, the statutory loss and loss adjustment expense ratio, other
underwriting expense ratio and combined ratio for the 1997 first quarter
were 73.7%, 28.8% and 102.5%, respectively, and for the 1997 nine months
were 72.7%, 30.0% and 102.7%, respectively.
(2) Based on 12 month rolling net written premiums.
(3) Before policyholder dividends.
Page 31
TRAVELERS GROUP -- PROPERTY & CASUALTY INSURANCE SERVICES -- Page 3
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q
1997 1997 1997 1997 1998 1998
-------- -------- -------- -------- -------- --------
COMMERCIAL LINES
Net written premiums by market: (1)
National accounts $ 221.6 $ 149.7 $ 151.1 $ 134.6 $ 186.6 $ 121.6
Commercial accounts 560.5 453.0 502.3 470.3 462.6 440.8
Select accounts 363.7 369.6 353.9 345.1 378.6 393.7
Specialty accounts 192.6 168.4 169.1 151.9 184.0 164.7
-------- -------- -------- -------- -------- --------
Total net written premiums $1,338.4 $1,140.7 $1,176.4 $1,101.9 $1,211.8 $1,120.8
======== ======== ======== ======== ======== ========
Statutory ratio development:
Earned premiums $1,090.4 $1,092.6 $1,061.8 $1,063.8 $1,126.2 $1,093.6
Losses and loss adjustment expenses 891.4 849.6 821.0 816.1 880.5 864.2
Other underwriting expenses 367.3 363.7 375.1 349.4 346.0 345.6
-------- -------- -------- -------- -------- --------
Total deductions 1,258.7 1,213.3 1,196.1 1,165.5 1,226.5 1,209.8
-------- -------- -------- -------- -------- --------
Statutory underwriting loss $ (168.3) $ (120.7) $ (134.3) $ (101.7) $ (100.3) $ (116.2)
======== ======== ======== ======== ======== ========
Statutory combined ratio: (1), (2)
Loss and loss adjustment expense ratio 81.7% 77.8% 77.3% 76.7% 78.2% 79.0%
Other underwriting expense ratio 27.4% 31.9% 31.9% 31.7% 28.6% 30.8%
-------- -------- -------- -------- -------- --------
Combined ratio 109.1% 109.7% 109.2% 108.4% 106.8% 109.8%
======== ======== ======== ======== ======== ========
Net investment income (pre-tax) $ 413.7 $ 417.6 $ 441.5 $ 422.6 $ 412.5 $ 424.3
Effective tax rate on net investment income 30.5% 29.9% 29.9% 28.1% 28.0% 27.5%
Catastrophe losses, net of reinsurance (after-tax) $ 4.9 $ 0.2 $ -- $ -- $ -- $ 10.4
YTD YTD
3Q 3Q 3Q
1998 1997 1998
-------- -------- --------
COMMERCIAL LINES
Net written premiums by market: (1)
National accounts $ 175.3 $ 522.4 $ 483.5
Commercial accounts 446.0 1,515.8 1,349.4
Select accounts 365.7 1,087.2 1,138.0
Specialty accounts 181.2 530.1 529.9
-------- -------- --------
Total net written premiums $1,168.2 $3,655.5 $3,500.8
======== ======== ========
Statutory ratio development:
Earned premiums $1,139.2 $3,244.8 $3,359.0
Losses and loss adjustment expenses 896.6 2,562.0 2,641.3
Other underwriting expenses 341.7 1,106.1 1,033.3
-------- -------- --------
Total deductions 1,238.3 3,668.1 3,674.6
-------- -------- --------
Statutory underwriting loss $ (99.1) $ (423.3) $ (315.6)
======== ======== ========
Statutory combined ratio: (1), (2)
Loss and loss adjustment expense ratio 78.7% 79.0% 78.6%
Other underwriting expense ratio 29.3% 30.3% 29.5%
-------- -------- --------
Combined ratio 108.0% 109.3% 108.1%
======== ======== ========
Net investment income (pre-tax) $ 411.8 $1,272.8 $1,248.6
Effective tax rate on net investment income 26.9% 30.1% 27.5%
Catastrophe losses, net of reinsurance (after-tax) $ 14.9 $ 5.1 $ 25.3
(1) First quarter 1997 net written premiums include an increase of $142.4
million due to a change to conform Aetna P&C's and Travelers P&C's methods
of recording net written premiums. Excluding this transaction, the loss
and loss adjustment expense ratio, other underwriting expense ratio and
combined ratio for the 1997 first quarter were 81.7%, 28.8% and 110.5%,
respectively, and for the 1997 nine months were 79.0%, 30.9% and 109.9%,
respectively.
(2) Before policyholder dividends.
Page 32
TRAVELERS GROUP -- PROPERTY & CASUALTY INSURANCE SERVICES -- Page 4
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q
1997 1997 1997 1997 1998 1998
-------- -------- -------- -------- -------- --------
PERSONAL LINES
Net written premiums by product line: (1)
Auto $ 478.0 $ 477.9 $ 490.9 $ 503.8 $ 555.7 $ 578.3
Homeowners and other 296.9 267.0 283.9 275.8 250.3 295.6
-------- -------- -------- -------- -------- --------
Total net written premiums $ 774.9 $ 744.9 $ 774.8 $ 779.6 $ 806.0 $ 873.9
======== ======== ======== ======== ======== ========
Net written premiums by distribution channel: (1)
Independent agents $ 707.4 $ 654.0 $ 673.2 $ 668.3 $ 682.5 $ 718.0
Affinity group marketing 36.7 43.9 49.2 50.3 53.4 61.0
SECURE 9.7 15.2 19.5 28.2 38.0 55.8
Joint marketing arrangements 21.1 31.8 32.9 32.8 32.1 39.1
-------- -------- -------- -------- -------- --------
Total net written premiums $ 774.9 $ 744.9 $ 774.8 $ 779.6 $ 806.0 $ 873.9
======== ======== ======== ======== ======== ========
Statutory ratio development:
Earned premiums $ 709.6 $ 718.9 $ 743.6 $ 745.0 $ 770.8 $ 802.5
Total deductions 658.3 674.2 700.7 702.3 728.7 765.6
-------- -------- -------- -------- -------- --------
Statutory underwriting gain $ 51.3 $ 44.7 $ 42.9 $ 42.7 $ 42.1 $ 36.9
======== ======== ======== ======== ======== ========
Statutory combined ratio: (1)
Loss and loss adjustment expense ratio 61.2% 64.9% 63.9% 64.0% 65.2% 65.2%
Other underwriting expense ratio 28.9% 27.9% 29.1% 28.9% 28.0% 27.7%
-------- -------- -------- -------- -------- --------
Combined ratio 90.1% 92.8% 93.0% 92.9% 93.2% 92.9%
======== ======== ======== ======== ======== ========
Net investment income (pre-tax) $ 86.0 $ 87.7 $ 86.1 $ 93.2 $ 95.4 $ 94.8
Effective tax rate on net investment income 31.1% 30.8% 30.4% 29.3% 29.4% 28.5%
Catastrophe losses, net of reinsurance (after-tax) $ -- $ 4.5 $ -- $ 5.3 $ 8.6 $ 13.1
YTD YTD
3Q 3Q 3Q
1998 1997 1998
-------- -------- --------
PERSONAL LINES
Net written premiums by product line: (1)
Auto $ 590.8 $1,446.8 $1,724.8
Homeowners and other 317.9 847.8 863.8
-------- -------- --------
Total net written premiums $ 908.7 $2,294.6 $2,588.6
======== ======== ========
Net written premiums by distribution channel: (1)
Independent agents $ 731.8 $2,034.6 $2,132.3
Affinity group marketing 72.9 129.8 187.3
SECURE 60.8 44.4 154.6
Joint marketing arrangements 43.2 85.8 114.4
-------- -------- --------
Total net written premiums $ 908.7 $2,294.6 $2,588.6
======== ======== ========
Statutory ratio development:
Earned premiums $ 835.7 $2,172.1 $2,409.0
Total deductions 824.4 2,033.2 2,318.7
-------- -------- --------
Statutory underwriting gain $ 11.3 $ 138.9 $ 90.3
======== ======== ========
Statutory combined ratio: (1)
Loss and loss adjustment expense ratio 69.5% 63.3% 66.7%
Other underwriting expense ratio 26.8% 28.6% 27.5%
-------- -------- --------
Combined ratio 96.3% 91.9% 94.2%
======== ======== ========
Net investment income (pre-tax) $ 88.6 $ 259.8 $ 278.8
Effective tax rate on net investment income 27.4% 30.8% 28.4%
Catastrophe losses, net of reinsurance (after-tax) $ 21.8 $ 4.5 $ 43.5
(1) The 1997 first quarter net written premiums include an adjustment
associated with a reinsurance transaction, which increased premiums by
$68.7 million. Excluding this transaction, the loss and loss adjustment
expense ratio, other underwriting expense ratio and combined ratio for the
1997 first quarter were 61.2%, 28.6% and 89.8%, respectively, and for the
1997 nine months were 63.3%, 28.5% and 91.8%, respectively.
Page 33
TRAVELERS GROUP -- SELECTED OTHER DATA
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1997 1997 1997 1997 1998 1998 1998
-------- -------- -------- -------- -------- -------- --------
INVESTMENT PORTFOLIO (at carrying value) (1)
Fixed-income investments:
Available for sale, at market:
Mortgage-backed securities - principally
obligations of U.S. Government agencies $ 8,842 $ 9,120 $ 9,040 $ 8,998 $ 8,726 $ 8,693 $ 9,663
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies 3,014 3,242 3,571 3,962 3,912 4,281 4,977
Corporates (including redeemable preferreds) 24,714 26,331 27,029 27,025 27,428 27,176 26,796
Obligations of states and political subdivisions 5,337 5,857 6,812 8,110 9,124 10,107 10,854
Debt securities issued by foreign governments 1,236 1,384 1,379 1,326 1,339 1,166 997
Held to maturity, at amortized cost 49 46 43 41 38 36 33
-------- -------- -------- -------- -------- -------- --------
Total fixed income 43,192 45,980 47,874 49,462 50,567 51,459 53,320
Equity securities, at market 1,296 1,377 1,609 1,624 1,541 1,503 1,368
Mortgage loans and real estate held for sale 4,513 4,493 4,153 3,799 3,470 3,436 3,344
Policy loans 1,902 1,873 1,875 1,872 1,869 1,865 1,863
Short-term and other 5,878 5,135 4,159 5,077 6,709 6,179 7,477
-------- -------- -------- -------- -------- -------- --------
Total invested assets $ 56,781 $ 58,858 $ 59,670 $ 61,834 $ 64,156 $ 64,442 $ 67,372
======== ======== ======== ======== ======== ======== ========
After tax unrealized gains (losses) on invested assets $ (131) $ 437 $ 930 $ 1,157 $ 1,121 $ 1,274 $ 1,794
======== ======== ======== ======== ======== ======== ========
RATINGS Moody's S&P Fitch D&P
-------------- --------------- --------------- ---------------
Senior Debt:
Citigroup (formerly Travelers Group Inc.) Aa2 AA- AA AA-
Commercial Credit Company Aa3 A+ AA A+
Salomon Smith Barney Holdings, Inc. Aa3 A AA A+
Travelers Property Casualty Corp. A1* A+ AA- A+
Moody's S&P AM Best D&P
-------------- --------------- --------------- ---------------
Claims Paying Ability:
Travelers Property & Casualty Pool Aa3* AA- A AA-
Travelers Insurance Company Aa3* AA A+ AA
Primerica Life Insurance Company Aa3* AA A AA
* Confirmed with positive outlook.
(1) Represents Travelers Group's consolidated investments, which primarily
support the company's insurance operations but also include corporate
investments and investments managed on behalf of Consumer Finance
Services.
Page 34