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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 21, 2003
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Citigroup Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-9924 52-1568099
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
399 Park Avenue, New York, New York 10043
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(Address of principal executive offices) (Zip Code)
(212) 559-1000
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(Registrant's telephone number, including area code)
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Citigroup Inc.
Current Report on Form 8-K
ITEM 5. OTHER EVENTS.
On January 21, 2003, Citigroup Inc. reported record net income of $15.28
billion for the twelve months ended December 31, 2002, an 8% increase over
2001. Net income per share for 2002, also up 8%, was $2.94. Core income for
the year was also a record, at $13.65 billion, or $2.63 per share, and
excluded realized insurance losses of $215 million as well as net
restructuring reserve releases of $10 million, a $47 million charge related
to the cumulative effect of adopting SFAS 142 related to goodwill and other
intangible assets, and $1.88 billion in income from discontinued operations
to reflect the spin off of Travelers Property Casualty.
For the fourth quarter of 2002, the company reported GAAP net income of $2.43
billion, a 37% decline from the fourth quarter of 2001. Core income was $2.44
billion, a 32% drop from the prior year period. Core income per diluted share
was $0.47 for the quarter.
Results for the fourth quarter and full year included a previously-announced
$1.3 billion after tax charge related to the establishment of reserves for the
previously announced proposed settlement with regulators and related civil
litigation, as well as regulatory inquiries and private litigation related to
Enron. Fourth quarter results also included a $254 million after tax increase to
the company's reserve for loan losses.
"During 2002, our company faced several significant challenges: continued
weakness in global markets, record bankruptcies in the developed world,
political and economic upheaval in a number of countries in which we operate,
and intense scrutiny of its business practices. That we delivered record results
for our shareholders during this period - expecting to achieve greater
profitability than any other company - is a testament to the strength of
Citigroup, the power of our business model and the value of recurring and
predictable earnings. That we did so while establishing reforms to maintain
confidence in our company and the financial markets demonstrated the dedication
and commitment of all 250,000 employees," said Sanford I. Weill, Chairman and
Chief Executive Officer of Citigroup.
"Our Global Consumer businesses were again the greatest contributor to our
performance, with 26% income growth for the fourth quarter, capping a year of
21% growth. While our fourth quarter charge resulted in a loss for the Global
Corporate and Investment Bank, this segment continued to lead the industry in
market share and fees, ranking number one in Global Underwriting and in
Disclosed Fees, and number two in Global M&A. Private Client Services maintained
its leadership position even as that unit defined itself as a model for the
industry in assuring the independence and objectivity of research. Global
Investment Management again outperformed the industry in a difficult market,
generating record income in its Private Bank and Asset Management businesses.
The diversity of our income, by product and by region, was a major driver of our
growth in each of our businesses.
"We begin 2003 with tremendous confidence in the future," continued Weill. "The
many reforms we've instituted in areas such as research, IPO allocations,
structured finance, and corporate governance only serve to strengthen our
company. We've welcomed tremendous new talent into our company. We enter the new
year in a better position than ever, with the strongest competitive position,
largest capital base and reserves in the industry, and the greatest earnings
potential this company has ever had. We will continue to provide our customers
with the highest quality of financial services, and to deliver double digit
income growth and industry-leading returns for our shareholders in 2003."
1
CITIGROUP
DURING 2002, CITIGROUP:
o Generated record income in six of the company's nine business lines
o Produced revenue growth of 7%, while holding expense growth to 3%
o Increased its reserves for credit losses by $1.53 billion, including
$452 million related to Golden State Bancorp
o Increased total equity, including trust preferred securities, by more
than $4.5 billion, to $92.9 billion
o Strengthened regulatory capital ratios
o Completed the IPO and subsequent spin-off to shareholders of Travelers
Property Casualty, realizing a gain of $1.27 billion
o Maintained its strong ratings position including parent company senior
debt ratings of Aa1 and AA- from Moody's and Standard & Poor's,
respectively, as well as receiving an upgrade from Fitch to AA+
o Repurchased 151.1 million shares and reduced common shares
outstanding, after issuing 79.5 million shares in connection with the
acquisition of GSB
HIGHLIGHTS OF THE QUARTER INCLUDED:
o Revenues of $18.93 billion for the fourth quarter were slightly higher
than the prior year period, driven by 13% revenue growth for Global
Consumer. Expenses rose 15%, including the $1.3 billion charge for the
settlement in principle with the regulators and related litigation
reserves. Expenses were $103 million, after tax, lower in the quarter,
due to the discontinuance of amortization of goodwill and certain
intangibles in accordance with SFAS 142.
o At the end of 2002, Citigroup's reserve for loan losses stood at
$11.67 billion as the company increased the reserve by an additional
$386 million, pre-tax, beyond net credit losses in the fourth quarter,
and added $452 million related to the Golden State acquisition. The
provision for loan losses in the Global Corporate and Investment Bank
continued to increase, impacted by higher credit costs in the
company's merchant energy and telecom portfolios. Credit quality in
the company's consumer businesses has improved slightly from the third
quarter of 2002, with the total net credit loss rate for Global
Consumer improving 21 basis points, to 2.98%. Consumer credit quality
is expected to remain stable during the first half of 2003.
o Citigroup completed the acquisition of Golden State Bancorp, which
added 352 branches and $25 billion in deposits to Citigroup's retail
banking franchise, primarily in California and Nevada, as well as
giving the company an important foothold in the growing Hispanic
banking market.
o Citigroup continued to expand its global franchise, launching retail
banking operations in Russia and announcing an equity investment in
and joint venture with the Shanghai Pudong Development Bank to market
credit cards to consumers in China.
o Citigroup's Global Corporate and Investment Bank continued to lead the
market in terms of share and rankings, garnering the number one spot
in Global Underwriting, Disclosed Fees, and IPOs, in addition to
having the top-ranked equity research team in Institutional Investors'
annual poll for the second consecutive year. Citigroup was also named
"World's Best Bank" by EUROMONEY, "The Best Bank in Asia" by
FinanceAsia, and the #1 Foreign Exchange Bank by both GLOBAL FINANCE
and CORPORATE FINANCE magazines.
o Citigroup reduced the expected rate of return on its U.S. pension
assets from 9.5% to 8.0% resulting in a $34 million increase to its
pension expense for the fourth quarter.
o Citigroup's return on common equity based on net income was 11.7% for
the fourth quarter, and the company's total equity, including trust
preferred securities, totaled $92.9 billion at December 31, 2002. For
the full year, return on common equity was 18.6%. In the fourth
quarter, Citigroup repurchased 17.8 million common shares, at a total
cost of $605 million, bringing the total number of shares repurchased
in 2002 to 151.1 million. The company continues to have $5.15 billion
available for future share repurchases under existing authorizations.
2
GLOBAL CONSUMER
Core income of $2.37 billion for the fourth quarter, up 26%. Full year core
income of $8.42 billion, up 21%. Revenue for the fourth quarter of $10.86
billion, up 13%. Revenue for 2002 of $41.19 billion, up 15%. Highlights
included:
o CARDS, which now serves 102 million accounts in 47 countries, increased
income by 30% to $939 million, completing another record quarter. In North
America (which includes the card operations of Banamex), income grew 22%,
driven largely by a 10% increase in revenue, which included 6% receivables
growth, lower cost of funds, and 8% growth in sales, as well as the benefit
from changes in estimates impacting revenue recognition on securitizations.
An 11 basis point improvement in the net credit loss ratio was more than
offset by growth in the portfolio, resulting in a 9% increase of the
provision for credit losses. Revenue growth for international cards of 32%
reflects strong balance growth across all markets except Latin America, as
well as the adverse impact in the prior year of Argentina pesification. The
increase in the international cards provision for credit losses is
primarily due to higher credit costs in the Hong Kong and UK markets,
although credit losses have stabilized from the preceding quarter.
o CONSUMER FINANCE income growth of 15% was driven by 12% growth in revenue
and flat expenses, offsetting higher credit losses. In North America,
income rose 19% in part due to average loan growth of 11% and a stable net
interest margin, as well as the contribution from the auto business of
Golden State. International income growth of 9% reflected reduced losses in
Argentina, along with strong growth in Europe. Earnings in Japan declined
due to higher losses and increased reserves as well as volume pressure
resulting from tighter underwriting standards in response to the continued
challenging economic environment there.
o RETAIL BANKING income rose 25%, reflecting strong performance across most
regions, with the exception of Latin America due to the difficult operating
conditions in the region. In North America, income rose 35%, driven by the
addition of the Golden State Bancorp retail branch and mortgage operations
to Citibanking and Consumer Assets, respectively. Higher deposit volumes
also contributed to Citibanking's income growth of 15%. The growth in
Consumer Assets income also reflected the continued record levels of
mortgage refinancings and substantial volume growth in student loans. In
the international markets, Western Europe continued its strong performance,
up 30%, largely due to higher installment loan volumes, while Japan income
growth of 17% reflected growth in investment fee income. CEEMEA's income
decline of 24% primarily reflects continued investment in strategic
markets, offsetting strong performance in India.
GLOBAL CORPORATE AND INVESTMENT BANK
Loss of $344 million for the fourth quarter, including a $1.3 billion after-tax
charge related to the establishment of reserves for the previously announced
proposed settlement with regulators and related civil litigation, as well as
regulatory inquiries and private litigation related to Enron. Full year core
income of $3.02 billion, down 33%. Fourth quarter revenue of $4.66 billion, down
9%. Revenue for 2002 of $20.22 billion, down 3%. Highlights included:
o CAPITAL MARKETS AND BANKING core income of $839 million increased 9% from
the fourth quarter of 2001. A substantial expense reduction of 32%,
primarily related to lower incentive compensation, helped to offset a 13%
decrease in revenue as well as a 24% increase in the provision for credit
losses. For the full year, compensation expense as a percentage of
risk-adjusted revenues for the GCIB and Private Client Services was 43.7%,
down from 44.9% in 2001. Revenues declined in most product categories,
reflecting weaker fixed income and foreign exchange trading results, as
well as lower underwriting and advisory volumes. The provision for credit
losses of $829 million was 24%, or $158 million higher than the prior year
period. Net credit losses included charge-offs in the company's merchant
energy and telecom portfolios as well as further write-offs in Argentina.
In addition, the business added to reserves for loan losses by an
additional $225 million in excess of net credit losses in the quarter.
o TRANSACTION SERVICES core income, which includes Global Securities Services
and Cash, Trade and Treasury Services (formerly known as e-Business), rose
2%. Revenues were essentially unchanged from the prior year period, as
lower interest rates and a decline in global market values affected net
interest revenue as well as fees. The business continued to reduce
expenses, which declined 3%, and increased its provision for credit losses
by $40 million as compared to the prior year period, reflecting
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CITIGROUP
additional reserves in Argentina. Liability balances rose 6% to $85
billion, while assets under custody also grew 6% to $5.1 trillion.
PRIVATE CLIENT SERVICES
Core income of $153 million for the fourth quarter, down 19%. Full year core
income of $722 million, down 7%. Fourth quarter revenue of $1.32 billion, down
8%. Revenue for 2002 of $5.72 billion, down 4%. Highlights included:
o Private Client Services core income declined from the prior year period, as
revenue per FC decreased 7% to $411,000. Results reflected lower asset
values in the firm's managed accounts business, as well as lower
transactional volumes. The pre-tax margin was 19% for the quarter and 20%
for the full year, reflecting a 6% decline in expenses for the quarter and
3% for the full year. Total client assets declined 8% to $897 billion,
largely the result of lower market values. Net flows were $3 billion in the
fourth quarter and $35 billion for the full year, and balances in Smith
Barney's bank deposit program totaled $41 billion at year-end.
GLOBAL INVESTMENT MANAGEMENT
Core income of $439 million for the fourth quarter, up 5%. Full year core income
of $1.82 billion, up 13%. Revenue for the fourth quarter of $2.06 billion, down
5%. Revenue for 2002 of $8.18 billion, up 2%. Highlights included:
o LIFE INSURANCE AND ANNUITIES income declined 3%. Income for Travelers Life
and Annuity was unchanged from the fourth quarter of 2001, as strong
business volumes were offset by higher amortization of deferred acquisition
costs, lower fixed investment returns and lower account balances in
individual annuities. Business volumes for life insurance and group
annuities were a record with life net written premiums up 5% and group
annuity balances increasing 6%. Contributing to the income decline was a
loss of $6 million in International Insurance Manufacturing reflecting the
establishment of additional reserves in Argentina.
o THE PRIVATE BANK income was up 24%, capping a record year. Revenue
increased 6% reflecting stronger capital markets, structured lending and
banking. Client business volumes increased 3% to $164 billion. The U.S. and
Japan delivered particularly strong income growth in the quarter.
o Income for ASSET MANAGEMENT, which includes Retirement Services, rose 2%.
Revenues declined 4%, as weak global markets offset business volume growth.
Expenses declined by 1%. Assets under management grew 9% to $479 billion,
with institutional and retail flows of $35 billion during the year, as well
as the inclusion of the investment portfolio of Travelers Property
Casualty, which Citigroup manages on a third-party basis following the
spin-off. Citigroup Asset Management's market share of proprietary channels
was 36% in the Smith Barney Private Client Division, 74% in Primerica
Financial Services and 57% in Citibanking North America.
CITIGROUP INTERNATIONAL
Income for Citigroup's international operations, which are fully reflected in
the product disclosures above, increased 20% from the fourth quarter of 2001.
Citigroup International contributed $1.24 billion to the company's total core
income in the fourth quarter.
o ASIA'S income of $349 million represented a 3% decline from the prior year.
Consumer growth of 12% was driven by strong cards and branch lending
volumes across the region. Offsetting these results was a 21% decline in
income for the corporate and private client businesses, as a result of
spread compression and weaker trading results and the write down of an
investment security.
o WESTERN EUROPE'S income of $312 million increased 11% on the strength of
38% growth in consumer income. Consumer results were driven by the
continued expansion of the company's consumer finance business in the
region and the continued contribution from Germany. Income for the
corporate bank fell 14% as volumes remained weak and credit losses
increased.
o CEEMEA'S income was $277 million in the fourth quarter. Consumer income
rose on strong volume growth for cards and deposits, while corporate
results reflected risk reduction programs in certain countries.
o JAPAN'S income of $222 million represented a decline of 10% from the fourth
quarter of 2001, largely due to a 17% drop in consumer income. Consumer
finance operations have continued to face higher
4
CITIGROUP
losses as well as restrained growth in balances, which was partly offset by
a 7% decline in expenses. In the quarter, Citigroup launched a joint
venture with Mitsui Sumitomo Life, generating $140 million in variable
annuity deposits.
o LATIN AMERICA generated income of $78 million, as compared to a loss of $20
million in the prior year period. Results for the region continue to be
impacted by weakness in Argentina and constrained growth in several other
countries resulting from political uncertainty.
PROPRIETARY INVESTMENT ACTIVITIES AND CORPORATE/OTHER
For the fourth quarter of 2002, Citigroup's Proprietary Investment Activities
recorded a loss of $75 million, reflecting writedowns in the company's
investments in certain Emerging Markets countries, partly offset by higher
market valuations on publicly-traded securities. The loss of $105 million in
Corporate/Other was $24 million lower than the fourth quarter of 2001, primarily
reflecting lower funding costs.
###
FORWARD-LOOKING STATEMENTS
Certain of the statements contained herein that are not historical facts are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act. The Company's actual results may differ materially
from those included in the forward-looking statements. Forward-looking
statements are typically identified by words or phrases such as "believe,"
"expect," "anticipate," "intend," "estimate," "target," "may increase," "may
fluctuate," "may result in," "are projected," and similar expressions. These
forward-looking statements involve risks and uncertainties including, but not
limited to, the following: general economic conditions, including the
performance of financial markets and interest rates; the Company's ability to
achieve targeted income growth; the stability of consumer credit quality; and
the Company's ability to leverage the performance of its leading product
franchises globally and build upon a strong local presence in every region of
the world to grow market share and profitability.
###
A financial summary follows. Additional financial, statistical and
business-related information as well as business and segment trends, is
included in the Financial Supplement.
5
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<Table>
<Caption>
FOURTH QUARTER FULL YEAR
CITIGROUP SEGMENT INCOME - PRODUCT VIEW -------------------- % -------------------- %
(In Millions of Dollars, except per share data) 2002 2001 Change 2002 2001 Change
- ------------------------------------------------------------------------------------------------------------------------------
GLOBAL CONSUMER
Cards .......................................... $ 939 $ 721 30 $ 3,111 $ 2,547 22
Consumer Finance ............................... 560 488 15 2,216 1,925 15
Retail Banking ................................. 900 721 25 3,231 2,591 25
Other .......................................... (27) (45) 40 (143) (100) (43)
-------------------- --------------------
TOTAL GLOBAL CONSUMER ............................... 2,372 1,885 26 8,415 6,963 21
-------------------- --------------------
GLOBAL CORPORATE AND INVESTMENT BANK
Capital Markets and Banking .................... 839 768 9 3,862 4,008 (4)
Transaction Services ........................... 115 113 2 522 420 24
Other .......................................... (1,298) 24 NM (1,363) 54 NM
-------------------- --------------------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK .......... (344) 905 NM 3,021 4,482 (33)
-------------------- --------------------
PRIVATE CLIENT SERVICES ............................. 153 189 (19) 722 773 (7)
GLOBAL INVESTMENT MANAGEMENT
Life Insurance and Annuities ................... 194 200 (3) 836 836 -
Private Bank ................................... 117 94 24 457 372 23
Asset Management ............................... 128 125 2 528 404 31
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TOTAL GLOBAL INVESTMENT MANAGEMENT .................. 439 419 5 1,821 1,612 13
-------------------- --------------------
PROPRIETARY INVESTMENT ACTIVITIES ................... (75) 335 NM (233) 224 NM
CORPORATE/OTHER ..................................... (105) (129) 19 (93) (637) 85
-------------------- --------------------
CORE INCOME ......................................... 2,440 3,604 (32) 13,653 13,417 2
-------------------- --------------------
Restructuring-Related Items -- After-tax(A) ......... (14) 13 NM 10 (282) NM
Realized Insurance Investment Portfolio
Gains/(Losses), After-tax .......................... 3 (46) NM (215) 94 NM
-------------------- --------------------
INCOME FROM CONTINUING OPERATIONS ................... 2,429 3,571 (32) 13,448 13,229 2
Discontinued Operations, After-tax(B) ............... - 304 (100) 1,875 1,055 78
Cumulative Effect of Accounting Changes(C) .......... - - - (47) (158) 70
-------------------- --------------------
NET INCOME .......................................... $ 2,429 $ 3,875 (37) $ 15,276 $ 14,126 8
DILUTED EARNINGS PER SHARE:
NET INCOME(D) ....................................... $ 0.47 $ 0.74 (36) $ 2.94 $ 2.72 8
CORE INCOME ......................................... $ 0.47 $ 0.69 (32) $ 2.63 $ 2.59 2
</Table>
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(A) Restructuring-related items in the 2001 first quarter related
principally to severance and costs associated with the reduction of
staff in the Global Corporate and Investment Bank businesses, in the
2001 second quarter related principally to severance and costs
associated with the reduction of staff primarily in the Global Corporate
and Investment Bank and Global Consumer businesses, in the 2001 third
quarter primarily related to the acquisition of Banamex and the
integration of its operations, in the 2002 first quarter primarily
related to severance and costs associated with the reduction of staff in
Argentina within the Latin America consumer and corporate businesses, in
the 2002 second and third quarters primarily related to reductions in
the reserve due to changes in estimates, and in the 2002 fourth quarter
related primarily to the acquisition of Golden State Bancorp and the
integration of its operations.
(B) Travelers Property Casualty Corp. (TPC) (a wholly-owned subsidiary of
Citigroup on December 31, 2001) sold 231,000,000 shares of class A
common stock at $18.50 per share in an initial public offering (IPO) on
March 27, 2002. Citigroup made a tax-free distribution to its
stockholders of a portion of its ownership interest in TPC on August 20,
2002. Discontinued Operations includes the operations of TPC, the $1.270
billion ($1.158 billion after-tax) gain on the IPO and income taxes on
the operations and IPO gain. Citigroup remains a holder of approximately
9.9% of TPC's common equity.
(C) Accounting Changes refer to the 2001 first quarter adoption of Statement
of Financial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities", as amended (SFAS 133), the 2001
second quarter adoption of EITF issue 99-20, "Recognition of Interest
Income and Impairment on Purchased and Retained Beneficial Interests in
Securitized Financial Assets" (EITF 99-20), and the 2002 first quarter
adoption of the remaining provisions of SFAS No. 142, "Goodwill and
Other Intangible Assets" (SFAS 142).
(D) Diluted EPS from Income from Continuing Operations was $0.47 and $2.59
in the 2002 fourth quarter and full year months, compared to $0.68 and
$2.55 in the respective 2001 periods.
NM Not meaningful
Reclassified to conform to the current period's presentation.
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FOURTH QUARTER FULL YEAR
CITIGROUP CORE INCOME - REGIONAL VIEW -------------------- % -------------------- %
(In Millions of Dollars) 2002 2001 Change 2002 2001 Change
- -------------------------------------------------------------------------------------------------------------------------------
NORTH AMERICA (EXCLUDING MEXICO)(1)
Consumer ........................................ $ 1,483 $ 1,275 16 $ 5,393 $ 4,583 18
Corporate and Private Client Services ............ (765) 543 NM 1,796 2,823 (36)
Investment Management............................. 338 328 3 1,366 1,316 4
-------------------- --------------------
TOTAL NORTH AMERICA (EXCLUDING MEXICO) ................ 1,056 2,146 (51) 8,555 8,722 (2)
-------------------- --------------------
MEXICO(2)
Consumer ......................................... 223 110 NM 754 195 NM
Corporate and Private Client Services ............ 41 61 (33) 210 106 98
Investment Management ............................ 62 46 35 233 82 NM
-------------------- --------------------
TOTAL MEXICO .......................................... 326 217 50 1,197 383 NM
-------------------- --------------------
WESTERN EUROPE
Consumer ......................................... 180 130 38 613 447 37
Corporate and Private Client Services ............ 125 146 (14) 308 543 (43)
Investment Management ............................ 7 4 75 4 6 (33)
-------------------- --------------------
TOTAL WESTERN EUROPE .................................. 312 280 11 925 996 (7)
-------------------- --------------------
JAPAN
Consumer ......................................... 214 257 (17) 973 963 1
Corporate and Private Client Services ............ (5) (21) 76 102 100 2
Investment Management ............................ 13 10 30 57 33 73
-------------------- --------------------
TOTAL JAPAN ........................................... 222 246 (10) 1,132 1,096 3
-------------------- --------------------
ASIA (EXCLUDING JAPAN)
Consumer ......................................... 184 165 12 651 608 7
Corporate and Private Client Services ............ 139 176 (21) 652 630 3
Investment Management ............................ 26 20 30 107 79 35
-------------------- --------------------
TOTAL ASIA (EXCLUDING JAPAN) .......................... 349 361 (3) 1,410 1,317 7
-------------------- --------------------
LATIN AMERICA
Consumer ......................................... 7 (78) NM (136) 83 NM
Corporate and Private Client Services ............ 86 56 54 80 545 (85)
Investment Management ............................ (15) 2 NM 32 65 (51)
-------------------- --------------------
TOTAL LATIN AMERICA ................................... 78 (20) NM (24) 693 NM
-------------------- --------------------
CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA
Consumer ......................................... 81 26 NM 167 84 99
Corporate and Private Client Services ............ 188 133 41 595 508 17
Investment Management ............................ 8 9 (11) 22 31 (29)
-------------------- --------------------
TOTAL CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA .. 277 168 65 784 623 26
-------------------- --------------------
PROPRIETARY INVESTMENT ACTIVITIES ..................... (75) 335 NM (233) 224 NM
CORPORATE / OTHER ..................................... (105) (129) 19 (93) (637) 85
-------------------- --------------------
CORE INCOME ........................................... $ 2,440 $ 3,604 (32) $ 13,653 $ 13,417 2
</Table>
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(1) Excludes Proprietary Investment Activities and Corporate / Other.
(2) Includes the operations of Banamex from August 6, 2001 forward.
NM Not meaningful
Reclassified to conform to the current period's presentation.
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<Caption>
FOURTH QUARTER FULL YEAR
CITIGROUP SEGMENT ADJUSTED REVENUE - PRODUCT VIEW(1)(2) -------------------- % -------------------- %
(In Millions of Dollars) 2002 2001 Change 2002 2001 Change
- --------------------------------------------------------------------------------------------------------------------------------
GLOBAL CONSUMER
Cards ............................................... $ 4,724 $ 4,195 13 $ 17,903 $ 15,508 15
Consumer Finance .................................... 2,511 2,237 12 9,654 8,868 9
Retail Banking ...................................... 3,467 3,163 10 13,335 11,281 18
Other ............................................... 159 50 NM 300 276 9
-------------------- --------------------
TOTAL GLOBAL CONSUMER ................................... 10,861 9,645 13 41,192 35,933 15
-------------------- --------------------
GLOBAL CORPORATE AND INVESTMENT BANK
Capital Markets and Banking ......................... 3,745 4,299 (13) 16,898 17,492 (3)
Transaction Services ................................ 872 867 1 3,537 3,516 1
Other ............................................... 44 (59) NM (217) (202) (7)
-------------------- --------------------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK .............. 4,661 5,107 (9) 20,218 20,806 (3)
-------------------- --------------------
PRIVATE CLIENT SERVICES ................................. 1,318 1,433 (8) 5,717 5,940 (4)
GLOBAL INVESTMENT MANAGEMENT
Life Insurance and Annuities ........................ 1,121 1,223 (8) 4,412 4,379 1
Private Bank ........................................ 433 408 6 1,695 1,542 10
Asset Management .................................... 509 532 (4) 2,068 2,085 (1)
-------------------- --------------------
TOTAL GLOBAL INVESTMENT MANAGEMENT ...................... 2,063 2,163 (5) 8,175 8,006 2
-------------------- --------------------
PROPRIETARY INVESTMENT ACTIVITIES ....................... (63) 565 NM (141) 441 NM
CORPORATE / OTHER ....................................... 94 (10) NM 600 (334) NM
-------------------- --------------------
TOTAL ADJUSTED REVENUE .................................. $ 18,934 $ 18,903 - $ 75,761 $ 70,792 7
</Table>
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(1) Adjusted Net Revenues include the effect of Credit Card Securitization
Activities within the Global Cards Business. Adjusted or Managed Basis
Reporting reflects credit card securitizations as if the receivables had
neither been sold nor held for sale.
(2) Excludes Realized Insurance Investment Portfolio Gains (Losses) primarily
from the Life Insurance and Annuities, and Primerica Financial Services
businesses.
NM Not meaningful
Reclassified to conform to the current period's presentation.
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CITIGROUP - QUARTERLY FINANCIAL DATA SUPPLEMENT
<Table>
<Caption>
PAGE NUMBER
-------------
CITIGROUP CONSOLIDATED
FINANCIAL SUMMARY 1
SEGMENT CORE INCOME:
Product View 2
Regional View 3
SEGMENT ADJUSTED NET REVENUES:
Product View 4
Regional View 5
SEGMENT DETAIL
GLOBAL CONSUMER:
CARDS
Income Summary and Key Indicators 6
Geographic Distribution 7
CitiCards and Diners Club N.A. 8
CONSUMER FINANCE
Income Summary and Key Indicators 9
Geographic Distribution 10
CitiFinancial 11
RETAIL BANKING
Income Summary and Key Indicators 12
Geographic and Business Distribution 13
GLOBAL CORPORATE AND INVESTMENT BANK:
Capital Markets and Banking 14
Transaction Services 15
PRIVATE CLIENT SERVICES 16
GLOBAL CORPORATE AND INVESTMENT BANK AND PRIVATE CLIENT SERVICES:
Income Statement 17
Revenue Details 18
GLOBAL INVESTMENT MANAGEMENT:
Life Insurance and Annuities 19
Private Bank 20
Asset Management 21
PROPRIETARY INVESTMENT ACTIVITIES 22
Insurance Investment Portfolio 23
CITIGROUP SUPPLEMENTAL DETAIL
Consolidated Statement of Income 24
Earnings Analysis - Managed Basis 25
Consolidated Statement of Financial Position 26
Consumer Loan Delinquency Amounts, Net Credit Losses and Ratios 27
Reserve for Loan Losses 28
Non-Performing Assets 29
</Table>
<Page>
CITIGROUP - FINANCIAL SUMMARY [CITIGROUP LOGO]
(In millions of dollars, except per share amounts)
CITIGROUP, THE PREEMINENT GLOBAL FINANCIAL SERVICES COMPANY WITH SOME 200
MILLION CUSTOMER ACCOUNTS IN MORE THAN 100 COUNTRIES, PROVIDES CONSUMERS,
CORPORATIONS, GOVERNMENTS AND INSTITUTIONS A COMPLETE RANGE OF FINANCIAL
PRODUCTS AND SERVICES.
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q
2001 2001 2001 2001 2002
----------- ----------- ----------- ----------- -----------
NET INCOME $ 3,538 $ 3,536 $ 3,177 $ 3,875 $ 4,843
Discontinued Operations, After-tax (468) (341) 58 (304) (1,406)
Cumulative Effect of Accounting Changes 42 116 - - 47
----------- ----------- ----------- ----------- -----------
INCOME FROM CONTINUING OPERATIONS 3,112 3,311 3,235 3,571 3,484
Restructuring Related Items, After-tax 80 131 84 (13) 29
Realized Insurance Investment Portfolio (Gains) / Losses,
After-tax (74) (2) (64) 46 (16)
----------- ----------- ----------- ----------- -----------
CORE INCOME $ 3,118 $ 3,440 $ 3,255 $ 3,604 $ 3,497
=========== =========== =========== =========== ===========
BASIC EARNINGS PER SHARE:
NET INCOME $ 0.70 $ 0.70 $ 0.62 $ 0.75 $ 0.94
=========== =========== =========== =========== ===========
INCOME FROM CONTINUING OPERATIONS $ 0.62 $ 0.66 $ 0.63 $ 0.69 $ 0.68
=========== =========== =========== =========== ===========
CORE INCOME $ 0.62 $ 0.69 $ 0.64 $ 0.70 $ 0.68
=========== =========== =========== =========== ===========
WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO BASIC EPS 4,984.7 4,979.6 5,060.8 5,101.8 5,110.5
=========== =========== =========== =========== ===========
PREFERRED DIVIDENDS - BASIC $ 28 $ 28 $ 28 $ 26 $ 21
=========== =========== =========== =========== ===========
DILUTED EARNINGS PER SHARE:
NET INCOME $ 0.69 $ 0.69 $ 0.61 $ 0.74 $ 0.93
=========== =========== =========== =========== ===========
INCOME FROM CONTINUING OPERATIONS $ 0.60 $ 0.64 $ 0.62 $ 0.68 $ 0.66
=========== =========== =========== =========== ===========
CORE INCOME $ 0.60 $ 0.67 $ 0.62 $ 0.69 $ 0.67
=========== =========== =========== =========== ===========
ADJUSTED WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO DILUTED EPS 5,110.0 5,100.0 5,169.0 5,209.1 5,209.8
=========== =========== =========== =========== ===========
PREFERRED DIVIDENDS - DILUTED $ 28 $ 28 $ 28 $ 26 $ 21
=========== =========== =========== =========== ===========
COMMON SHARES OUTSTANDING, AT PERIOD END 5,033.7 5,026.1 5,144.2 5,148.7 5,165.4
=========== =========== =========== =========== ===========
TIER 1 CAPITAL RATIO 8.56% 8.82% 8.20% 8.42% 9.13%
=========== =========== =========== =========== ===========
TOTAL CAPITAL RATIO 11.31% 11.49% 10.77% 10.92% 11.59%
=========== =========== =========== =========== ===========
LEVERAGE RATIO 6.10% 6.17% 5.65% 5.64% 5.89%
=========== =========== =========== =========== ===========
TOTAL ASSETS, AT PERIOD END (IN BILLIONS) $ 944.3 $ 953.4 $ 1,068.2 $ 1,051.5 $ 1,057.7
=========== =========== =========== =========== ===========
STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS) $ 68.7 $ 70.5 $ 78.4 $ 81.2 $ 83.6
=========== =========== =========== =========== ===========
STOCKHOLDERS' EQUITY AND TRUST SECURITIES, AT PERIOD END
(IN BILLIONS) $ 73.6 $ 75.1 $ 85.5 $ 88.4 $ 90.3
=========== =========== =========== =========== ===========
BOOK VALUE PER SHARE, AT PERIOD END $ 13.29 $ 13.68 $ 14.90 $ 15.48 $ 15.92
=========== =========== =========== =========== ===========
RETURN ON COMMON EQUITY (NET INCOME) 21.7% 20.9% 17.1% 19.5% 24.0%
=========== =========== =========== =========== ===========
RETURN ON COMMON EQUITY (CORE INCOME) - Restated to reflect
Travelers Property Casualty Corp. as a
Discontinued Operation 22.9% 24.3% 20.6% 21.0% 19.9%
=========== =========== =========== =========== ===========
<Caption>
4Q 2002 VS.
2Q 3Q 4Q 4Q 2001 INCREASE/
2002 2002 2002 (DECREASE)
----------- ----------- ----------- -----------------
NET INCOME $ 4,084 $ 3,920 $ 2,429 (37%)
Discontinued Operations, After-tax (255) (214) -
Cumulative Effect of Accounting Changes - - -
----------- ----------- -----------
INCOME FROM CONTINUING OPERATIONS 3,829 3,706 2,429 (32%)
Restructuring Related Items, After-tax (26) (27) 14
Realized Insurance Investment Portfolio (Gains) / Losses,
After-tax 120 114 (3)
----------- ----------- -----------
CORE INCOME $ 3,923 $ 3,793 $ 2,440 (32%)
=========== =========== ===========
BASIC EARNINGS PER SHARE:
NET INCOME $ 0.80 $ 0.77 $ 0.48 (36%)
=========== =========== ===========
INCOME FROM CONTINUING OPERATIONS $ 0.75 $ 0.73 $ 0.48 (30%)
=========== =========== ===========
CORE INCOME $ 0.77 $ 0.75 $ 0.48 (31%)
=========== =========== ===========
WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO BASIC EPS 5,096.7 5,036.6 5,068.0
=========== =========== ===========
PREFERRED DIVIDENDS - BASIC $ 21 $ 21 $ 20
=========== =========== ===========
DILUTED EARNINGS PER SHARE:
NET INCOME $ 0.78 $ 0.76 $ 0.47 (36%)
=========== =========== ===========
INCOME FROM CONTINUING OPERATIONS $ 0.73 $ 0.72 $ 0.47 (31%)
=========== =========== ===========
CORE INCOME $ 0.75 $ 0.74 $ 0.47 (32%)
=========== =========== ===========
ADJUSTED WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO DILUTED EPS 5,185.8 5,110.5 5,158.6
=========== =========== ===========
PREFERRED DIVIDENDS - DILUTED $ 21 $ 21 $ 20
=========== =========== ===========
COMMON SHARES OUTSTANDING, AT PERIOD END 5,118.1 5,062.0 5,140.7
=========== =========== ===========
TIER 1 CAPITAL RATIO 9.20% 9.20% 8.5%*
=========== =========== ===========
TOTAL CAPITAL RATIO 11.75% 12.02% 11.2%*
=========== =========== ===========
LEVERAGE RATIO 5.93% 5.41% 5.6%*
=========== =========== ===========
TOTAL ASSETS, AT PERIOD END (IN BILLIONS) $ 1,083.3 $ 1,031.6 $ 1,097.2*
=========== =========== ===========
STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS) $ 85.7 $ 80.8 $ 86.7*
=========== =========== ===========
STOCKHOLDERS' EQUITY AND TRUST SECURITIES, AT PERIOD END
(IN BILLIONS) $ 92.5 $ 86.9 $ 92.9*
=========== =========== ===========
BOOK VALUE PER SHARE, AT PERIOD END $ 16.47 $ 15.68 $ 16.60*
=========== =========== ===========
RETURN ON COMMON EQUITY (NET INCOME) 19.5% 19.1% 11.7%*
=========== =========== ===========
RETURN ON COMMON EQUITY (CORE INCOME) - Restated to reflect
Travelers Property Casualty Corp. as a
Discontinued Operation 20.7% 19.4% 11.7%*
=========== =========== ===========
<Caption>
YTD YTD YTD 4Q 2002 VS.
4Q 4Q YTD 4Q 2001 INCREASE/
2001 2002 (DECREASE)
----------- ----------- ---------------------
NET INCOME $ 14,126 $ 15,276 8%
Discontinued Operations, After-tax (1,055) (1,875)
Cumulative Effect of Accounting Changes 158 47
----------- -----------
INCOME FROM CONTINUING OPERATIONS 13,229 13,448 2%
Restructuring Related Items, After-tax 282 (10)
Realized Insurance Investment Portfolio (Gains) / Losses,
After-tax (94) 215
----------- -----------
CORE INCOME $ 13,417 $ 13,653 2%
=========== ===========
BASIC EARNINGS PER SHARE:
NET INCOME $ 2.79 $ 2.99 7%
=========== ===========
INCOME FROM CONTINUING OPERATIONS $ 2.61 $ 2.63 1%
=========== ===========
CORE INCOME $ 2.64 $ 2.67 1%
=========== ===========
WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO BASIC EPS 5,031.7 5,078.0
=========== ===========
PREFERRED DIVIDENDS - BASIC $ 110 $ 83
=========== ===========
DILUTED EARNINGS PER SHARE:
NET INCOME $ 2.72 $ 2.94 8%
=========== ===========
INCOME FROM CONTINUING OPERATIONS $ 2.55 $ 2.59 2%
=========== ===========
CORE INCOME $ 2.59 $ 2.63 2%
=========== ===========
ADJUSTED WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO DILUTED EPS 5,147.0 5,166.2
=========== ===========
PREFERRED DIVIDENDS - DILUTED $ 110 $ 83
=========== ===========
COMMON SHARES OUTSTANDING, AT PERIOD END 5,148.7 5,140.7
=========== ===========
TIER 1 CAPITAL RATIO 8.42% 8.5%*
=========== ===========
TOTAL CAPITAL RATIO 10.92% 11.2%*
=========== ===========
LEVERAGE RATIO 5.64% 5.6%*
=========== ===========
TOTAL ASSETS, AT PERIOD END (IN BILLIONS) $ 1,051.5 $ 1,097.2*
=========== ===========
STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS) $ 81.2 $ 86.7*
=========== ===========
STOCKHOLDERS' EQUITY AND TRUST SECURITIES, AT PERIOD END
(IN BILLIONS) $ 88.4 $ 92.9*
=========== ===========
BOOK VALUE PER SHARE, AT PERIOD END $ 15.48 $ 16.60*
=========== ===========
RETURN ON COMMON EQUITY (NET INCOME) 19.7% 18.6%*
=========== ===========
RETURN ON COMMON EQUITY (CORE INCOME) - Restated to reflect
Travelers Property Casualty Corp. as a
Discontinued Operation 22.3% 17.8%*
=========== ===========
</Table>
* Preliminary
Page 1
<Page>
CITIGROUP -- SEGMENT CORE INCOME [CITIGROUP LOGO]
PRODUCT VIEW
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2001 2001 2001 2001 2002 2002 2002 2002
-------- -------- -------- -------- -------- -------- -------- --------
GLOBAL CONSUMER:
Cards $ 578 $ 547 $ 701 $ 721 $ 588 $ 735 $ 849 $ 939
Consumer Finance 397 491 549 488 536 565 555 560
Retail Banking 553 586 731 721 721 743 867 900
Other (23) (13) (19) (45) (33) (34) (49) (27)
-------- -------- -------- -------- -------- -------- -------- --------
TOTAL GLOBAL CONSUMER 1,505 1,611 1,962 1,885 1,812 2,009 2,222 2,372
-------- -------- -------- -------- -------- -------- -------- --------
GLOBAL CORPORATE AND INVESTMENT BANK:
Capital Markets and Banking 1,201 1,033 1,006 768 1,029 1,070 924 839
Transaction Services 91 116 100 113 82 204 121 115
Other (12) 35 7 24 (22) (33) (10) (1,298)
-------- -------- -------- -------- -------- -------- -------- --------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 1,280 1,184 1,113 905 1,089 1,241 1,035 (344)
-------- -------- -------- -------- -------- -------- -------- --------
PRIVATE CLIENT SERVICES 196 206 182 189 197 204 168 153
GLOBAL INVESTMENT MANAGEMENT:
Life Insurance and Annuities 215 236 185 200 204 255 183 194
Private Bank 95 92 91 94 112 113 115 117
Asset Management 91 84 104 125 126 137 137 128
-------- -------- -------- -------- -------- -------- -------- --------
TOTAL GLOBAL INVESTMENT MANAGEMENT 401 412 380 419 442 505 435 439
-------- -------- -------- -------- -------- -------- -------- --------
PROPRIETARY INVESTMENT ACTIVITIES(1) (68) 206 (249) 335 35 (70) (123) (75)
CORPORATE/OTHER (196) (179) (133) (129) (78) 34 56 (105)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL CORE INCOME $ 3,118 $ 3,440 $ 3,255 $ 3,604 $ 3,497 $ 3,923 $ 3,793 $ 2,440
- -----------------------------------------------------------------------------------------------------------------------------------
<Caption>
4Q 2002 VS. YTD YTD YTD 4Q 2002 VS.
4Q 2001 INCREASE/ 4Q 4Q YTD 4Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
----------------- -------- -------- ---------------------
GLOBAL CONSUMER:
Cards 30% $ 2,547 $ 3,111 22%
Consumer Finance 15% 1,925 2,216 15%
Retail Banking 25% 2,591 3,231 25%
Other 40% (100) (143) (43%)
-------- --------
TOTAL GLOBAL CONSUMER 26% 6,963 8,415 21%
-------- --------
GLOBAL CORPORATE AND INVESTMENT BANK:
Capital Markets and Banking 9% 4,008 3,862 (4%)
Transaction Services 2% 420 522 24%
Other NM 54 (1,363) NM
-------- --------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK NM 4,482 3,021 (33%)
-------- --------
PRIVATE CLIENT SERVICES (19%) 773 722 (7%)
GLOBAL INVESTMENT MANAGEMENT:
Life Insurance and Annuities (3%) 836 836 -
Private Bank 24% 372 457 23%
Asset Management 2% 404 528 31%
-------- --------
TOTAL GLOBAL INVESTMENT MANAGEMENT 5% 1,612 1,821 13%
-------- --------
PROPRIETARY INVESTMENT ACTIVITIES(1) NM 224 (233) NM
CORPORATE/OTHER 19% (637) (93) 85%
- ----------------------------------------------------------------------------------------------------------------
TOTAL CORE INCOME (32%) $ 13,417 $ 13,653 2%
- ----------------------------------------------------------------------------------------------------------------
</Table>
(1) Excludes Realized Insurance Investment Portfolio Gains (Losses) primarily
from the Life Insurance and Annuities, and Primerica Financial Services
businesses.
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 2
<Page>
CITIGROUP -- SEGMENT CORE INCOME [CITIGROUP LOGO]
REGIONAL VIEW
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
2001 2001 2001 2001 2002 2002 2002
-------- -------- -------- -------- -------- -------- --------
NORTH AMERICA (EXCLUDING MEXICO)(1)
Consumer $ 1,005 $ 1,065 $ 1,238 $ 1,275 $ 1,215 $ 1,287 $ 1,408
Corporate and Private Client Services 732 753 795 543 907 777 877
Investment Management 327 355 306 328 357 352 319
-------- -------- -------- -------- -------- -------- --------
TOTAL NORTH AMERICA (EXCLUDING MEXICO) 2,064 2,173 2,339 2,146 2,479 2,416 2,604
-------- -------- -------- -------- -------- -------- --------
MEXICO(2)
Consumer (14) (13) 112 110 145 181 205
Corporate and Private Client Services 19 22 4 61 98 45 26
Investment Management 7 10 19 46 48 70 53
-------- -------- -------- -------- -------- -------- --------
TOTAL MEXICO 12 19 135 217 291 296 284
-------- -------- -------- -------- -------- -------- --------
WESTERN EUROPE
Consumer 104 98 115 130 134 141 158
Corporate and Private Client Services 186 126 85 146 44 114 25
Investment Management 1 1 - 4 (7) 3 1
-------- -------- -------- -------- -------- -------- --------
TOTAL WESTERN EUROPE 291 225 200 280 171 258 184
-------- -------- -------- -------- -------- -------- --------
JAPAN
Consumer 205 242 259 257 240 254 265
Corporate and Private Client Services 98 4 19 (21) 23 (3) 87
Investment Management 8 6 9 10 16 16 12
-------- -------- -------- -------- -------- -------- --------
TOTAL JAPAN 311 252 287 246 279 267 364
-------- -------- -------- -------- -------- -------- --------
ASIA (EXCLUDING JAPAN)
Consumer 142 144 157 165 145 146 176
Corporate and Private Client Services 128 225 101 176 175 185 153
Investment Management 27 14 18 20 27 28 26
-------- -------- -------- -------- -------- -------- --------
TOTAL ASIA 297 383 276 361 347 359 355
-------- -------- -------- -------- -------- -------- --------
LATIN AMERICA
Consumer 49 55 57 (78) (92) (26) (25)
Corporate and Private Client Services 161 154 174 56 (92) 186 (100)
Investment Management 23 18 22 2 (3) 31 19
-------- -------- -------- -------- -------- -------- --------
TOTAL LATIN AMERICA 233 227 253 (20) (187) 191 (106)
-------- -------- -------- -------- -------- -------- --------
CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA
Consumer 14 20 24 26 25 26 35
Corporate and Private Client Services 152 106 117 133 131 141 135
Investment Management 8 8 6 9 4 5 5
-------- -------- -------- -------- -------- -------- --------
TOTAL CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA 174 134 147 168 160 172 175
-------- -------- -------- -------- -------- -------- --------
PROPRIETARY INVESTMENT ACTIVITIES (68) 206 (249) 335 35 (70) (123)
CORPORATE/OTHER (196) (179) (133) (129) (78) 34 56
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL CORE INCOME $ 3,118 $ 3,440 $ 3,255 $ 3,604 $ 3,497 $ 3,923 $ 3,793
- -----------------------------------------------------------------------------------------------------------------------------------
<Caption>
4Q 2002 VS. YTD YTD YTD 4Q 2002 VS.
4Q 4Q 2001 INCREASE/ 4Q 4Q YTD 4Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
-------- ----------------- -------- -------- ---------------------
NORTH AMERICA (EXCLUDING MEXICO)(1)
Consumer $ 1,483 16% $ 4,583 $ 5,393 18%
Corporate and Private Client Services (765) NM 2,823 1,796 (36%)
Investment Management 338 3% 1,316 1,366 4%
-------- -------- --------
TOTAL NORTH AMERICA (EXCLUDING MEXICO) 1,056 (51%) 8,722 8,555 (2%)
-------- -------- --------
MEXICO(2)
Consumer 223 NM 195 754 NM
Corporate and Private Client Services 41 (33%) 106 210 98%
Investment Management 62 35% 82 233 NM
-------- -------- --------
TOTAL MEXICO 326 50% 383 1,197 NM
-------- -------- --------
WESTERN EUROPE
Consumer 180 38% 447 613 37%
Corporate and Private Client Services 125 (14%) 543 308 (43%)
Investment Management 7 75% 6 4 (33%)
-------- -------- --------
TOTAL WESTERN EUROPE 312 11% 996 925 (7%)
-------- -------- --------
JAPAN
Consumer 214 (17%) 963 973 1%
Corporate and Private Client Services (5) 76% 100 102 2%
Investment Management 13 30% 33 57 73%
-------- -------- --------
TOTAL JAPAN 222 (10%) 1,096 1,132 3%
-------- -------- --------
ASIA (EXCLUDING JAPAN)
Consumer 184 12% 608 651 7%
Corporate and Private Client Services 139 (21%) 630 652 3%
Investment Management 26 30% 79 107 35%
-------- -------- --------
TOTAL ASIA 349 (3%) 1,317 1,410 7%
-------- -------- --------
LATIN AMERICA
Consumer 7 NM 83 (136) NM
Corporate and Private Client Services 86 54% 545 80 (85%)
Investment Management (15) NM 65 32 (51%)
-------- -------- --------
TOTAL LATIN AMERICA 78 NM 693 (24) NM
-------- -------- --------
CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA
Consumer 81 NM 84 167 99%
Corporate and Private Client Services 188 41% 508 595 17%
Investment Management 8 (11%) 31 22 (29%)
-------- -------- --------
TOTAL CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA 277 65% 623 784 26%
-------- -------- --------
PROPRIETARY INVESTMENT ACTIVITIES (75) NM 224 (233) NM
CORPORATE/OTHER (105) 19% (637) (93) 85%
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL CORE INCOME $ 2,440 (32%) $ 13,417 $ 13,653 2%
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Excludes Proprietary Investment Activities and Corporate / Other.
(2) Includes the operations of Banamex from August 6, 2001 forward.
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 3
<Page>
CITIGROUP -- SEGMENT ADJUSTED NET REVENUES(1) [CITIGROUP LOGO]
PRODUCT VIEW
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
2001 2001 2001 2001 2002 2002 2002
-------- -------- -------- -------- -------- -------- --------
GLOBAL CONSUMER:
Cards $ 3,606 $ 3,675 $ 4,032 $ 4,195 $ 4,150 $ 4,340 $ 4,689
Consumer Finance 2,153 2,178 2,300 2,237 2,298 2,406 2,439
Retail Banking 2,505 2,571 3,042 3,163 3,339 3,212 3,317
Other 27 117 82 50 31 65 45
-------- -------- -------- -------- -------- -------- --------
TOTAL GLOBAL CONSUMER 8,291 8,541 9,456 9,645 9,818 10,023 10,490
-------- -------- -------- -------- -------- -------- --------
GLOBAL CORPORATE AND INVESTMENT BANK:
Capital Markets and Banking 5,172 4,153 3,868 4,299 4,631 4,509 4,013
Transaction Services 902 891 856 867 835 939 891
Other (65) (18) (60) (59) (99) (104) (58)
-------- -------- -------- -------- -------- -------- --------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 6,009 5,026 4,664 5,107 5,367 5,344 4,846
-------- -------- -------- -------- -------- -------- --------
PRIVATE CLIENT SERVICES 1,549 1,508 1,450 1,433 1,477 1,523 1,399
GLOBAL INVESTMENT MANAGEMENT:
Life Insurance and Annuities 1,170 1,014 972 1,223 1,002 1,216 1,073
Private Bank 392 376 366 408 423 427 412
Asset Management 516 491 546 532 519 522 518
-------- -------- -------- -------- -------- -------- --------
TOTAL GLOBAL INVESTMENT MANAGEMENT 2,078 1,881 1,884 2,163 1,944 2,165 2,003
-------- -------- -------- -------- -------- -------- --------
PROPRIETARY INVESTMENT ACTIVITIES(2) (74) 310 (360) 565 92 (69) (101)
CORPORATE/OTHER (132) (105) (87) (10) 96 273 137
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ADJUSTED NET REVENUES $ 17,721 $ 17,161 $ 17,007 $ 18,903 $ 18,794 $ 19,259 $ 18,774
- ------------------------------------------------------------------------------------------------------------------------------------
<Caption>
4Q 2002 VS. YTD YTD YTD 4Q 2002 VS.
4Q 4Q 2001 INCREASE/ 4Q 4Q YTD 4Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
-------- ----------------- -------- -------- ---------------------
GLOBAL CONSUMER:
Cards $ 4,724 13% $ 15,508 $ 17,903 15%
Consumer Finance 2,511 12% 8,868 9,654 9%
Retail Banking 3,467 10% 11,281 13,335 18%
Other 159 NM 276 300 9%
-------- -------- --------
TOTAL GLOBAL CONSUMER 10,861 13% 35,933 41,192 15%
-------- -------- --------
GLOBAL CORPORATE AND INVESTMENT BANK:
Capital Markets and Banking 3,745 (13%) 17,492 16,898 (3%)
Transaction Services 872 1% 3,516 3,537 1%
Other 44 NM (202) (217) (7%)
-------- -------- --------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 4,661 (9%) 20,806 20,218 (3%)
-------- -------- --------
PRIVATE CLIENT SERVICES 1,318 (8%) 5,940 5,717 (4%)
GLOBAL INVESTMENT MANAGEMENT:
Life Insurance and Annuities 1,121 (8%) 4,379 4,412 1%
Private Bank 433 6% 1,542 1,695 10%
Asset Management 509 (4%) 2,085 2,068 (1%)
-------- -------- --------
TOTAL GLOBAL INVESTMENT MANAGEMENT 2,063 (5%) 8,006 8,175 2%
-------- -------- --------
PROPRIETARY INVESTMENT ACTIVITIES(2) (63) NM 441 (141) NM
CORPORATE/OTHER 94 NM (334) 600 NM
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL ADJUSTED NET REVENUES $ 18,934 - $ 70,792 $ 75,761 7%
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Adjusted Net Revenues include the effect of Credit Card Securitization
Activities within the Global Cards Business. Adjusted or Managed Basis
Reporting reflects credit card securitizations as if the receivables had
neither been sold nor held for sale. For a reconciliation between Managed
Basis Reporting and Reporting under Generally Accepted Accounting
Principles, see "Earnings Analysis - Managed Basis" on page 25.
(2) Excludes Realized Insurance Investment Portfolio Gains (Losses) primarily
from the Life Insurance and Annuities, and Primerica Financial Services
businesses.
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 4
<Page>
CITIGROUP -- SEGMENT ADJUSTED NET REVENUES(1) [CITIGROUP LOGO]
REGIONAL VIEW
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
2001 2001 2001 2001 2002 2002 2002
-------- -------- -------- -------- -------- -------- --------
NORTH AMERICA (EXCLUDING MEXICO)(2)
Consumer $ 5,786 $ 6,049 $ 6,406 $ 6,577 $ 6,601 $ 6,817 $ 7,097
Corporate and Private Client Services 4,639 3,825 3,751 3,928 4,403 4,235 3,792
Investment Management 1,613 1,457 1,354 1,587 1,402 1,530 1,465
-------- -------- -------- -------- -------- -------- --------
TOTAL NORTH AMERICA (EXCLUDING MEXICO) 12,038 11,331 11,511 12,092 12,406 12,582 12,354
-------- -------- -------- -------- -------- -------- --------
MEXICO(3)
Consumer 57 72 532 750 753 773 730
Corporate and Private Client Services 84 77 83 205 198 127 109
Investment Management 46 46 106 212 185 212 161
-------- -------- -------- -------- -------- -------- --------
TOTAL MEXICO 187 195 721 1,167 1,136 1,112 1,000
-------- -------- -------- -------- -------- -------- --------
WESTERN EUROPE
Consumer 564 540 583 607 612 671 709
Corporate and Private Client Services 1,129 1,057 802 955 796 961 855
Investment Management 77 73 75 71 66 81 80
-------- -------- -------- -------- -------- -------- --------
TOTAL WESTERN EUROPE 1,770 1,670 1,460 1,633 1,474 1,713 1,644
-------- -------- -------- -------- -------- -------- --------
JAPAN
Consumer 835 837 880 878 817 939 1,037
Corporate and Private Client Services 192 50 66 16 63 27 170
Investment Management 57 57 58 63 70 74 67
-------- -------- -------- -------- -------- -------- --------
TOTAL JAPAN 1,084 944 1,004 957 950 1,040 1,274
-------- -------- -------- -------- -------- -------- --------
ASIA (EXCLUDING JAPAN)
Consumer 548 545 559 571 557 580 614
Corporate and Private Client Services 557 651 509 564 569 605 567
Investment Management 107 81 85 99 103 109 98
-------- -------- -------- -------- -------- -------- --------
TOTAL ASIA 1,212 1,277 1,153 1,234 1,229 1,294 1,279
-------- -------- -------- -------- -------- -------- --------
LATIN AMERICA
Consumer 366 357 350 114 322 76 126
Corporate and Private Client Services 468 452 488 443 384 451 304
Investment Management 139 131 171 91 80 120 97
-------- -------- -------- -------- -------- -------- --------
TOTAL LATIN AMERICA 973 940 1,009 648 786 647 527
-------- -------- -------- -------- -------- -------- --------
CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA
Consumer 135 141 146 148 156 167 177
Corporate and Private Client Services 489 422 415 429 431 461 448
Investment Management 39 36 35 40 38 39 35
-------- -------- -------- -------- -------- -------- --------
TOTAL CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA 663 599 596 617 625 667 660
-------- -------- -------- -------- -------- -------- --------
PROPRIETARY INVESTMENT ACTIVITIES (74) 310 (360) 565 92 (69) (101)
CORPORATE/OTHER (132) (105) (87) (10) 96 273 137
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL ADJUSTED NET REVENUES $ 17,721 $ 17,161 $ 17,007 $ 18,903 $ 18,794 $ 19,259 $ 18,774
- -----------------------------------------------------------------------------------------------------------------------------------
<Caption>
4Q 2002 VS. YTD YTD YTD 4Q 2002 VS.
4Q 4Q 2001 INCREASE/ 4Q 4Q YTD 4Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
-------- ----------------- -------- -------- ---------------------
NORTH AMERICA (EXCLUDING MEXICO)(2)
Consumer $ 7,416 13% $ 24,818 $ 27,931 13%
Corporate and Private Client Services 3,310 (16%) 16,143 15,740 (2%)
Investment Management 1,511 (5%) 6,011 5,908 (2%)
-------- -------- --------
TOTAL NORTH AMERICA (EXCLUDING MEXICO) 12,237 1% 46,972 49,579 6%
-------- -------- --------
MEXICO(3)
Consumer 661 (12%) 1,411 2,917 NM
Corporate and Private Client Services 148 (28%) 449 582 30%
Investment Management 168 (21%) 410 726 77%
-------- -------- --------
TOTAL MEXICO 977 (16%) 2,270 4,225 86%
-------- -------- --------
WESTERN EUROPE
Consumer 757 25% 2,294 2,749 20%
Corporate and Private Client Services 953 - 3,943 3,565 (10%)
Investment Management 95 34% 296 322 9%
-------- -------- --------
TOTAL WESTERN EUROPE 1,805 11% 6,533 6,636 2%
-------- -------- --------
JAPAN
Consumer 978 11% 3,430 3,771 10%
Corporate and Private Client Services 30 88% 324 290 (10%)
Investment Management 76 21% 235 287 22%
-------- -------- --------
TOTAL JAPAN 1,084 13% 3,989 4,348 9%
-------- -------- --------
ASIA (EXCLUDING JAPAN)
Consumer 633 11% 2,223 2,384 7%
Corporate and Private Client Services 512 (9%) 2,281 2,253 (1%)
Investment Management 122 23% 372 432 16%
-------- -------- --------
TOTAL ASIA 1,267 3% 4,876 5,069 4%
-------- -------- --------
LATIN AMERICA
Consumer 157 38% 1,187 681 (43%)
Corporate and Private Client Services 491 11% 1,851 1,630 (12%)
Investment Management 55 (40%) 532 352 (34%)
-------- -------- --------
TOTAL LATIN AMERICA 703 8% 3,570 2,663 (25%)
-------- -------- --------
CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA
Consumer 259 75% 570 759 33%
Corporate and Private Client Services 535 25% 1,755 1,875 7%
Investment Management 36 (10%) 150 148 (1%)
-------- -------- --------
TOTAL CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA 830 35% 2,475 2,782 12%
-------- -------- --------
PROPRIETARY INVESTMENT ACTIVITIES (63) NM 441 (141) NM
CORPORATE/OTHER 94 NM (334) 600 NM
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL ADJUSTED NET REVENUES $ 18,934 - $ 70,792 $ 75,761 7%
- -----------------------------------------------------------------------------------------------------------------------------------
</Table>
# # #
[[FORWARD-LOOKING STATEMENTS]]
[[Certain of the statements contained herein that are not historical facts are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act. The Company's actual results may differ materially from
those included in the forward-looking statements. Forward-looking statements are
typically identified by words or phrases such as "believe," "expect,"
"anticipate," "intend," "estimate," "target," "may increase," "may fluctuate,"
"may result in," "are projected," and similar expressions. These forward-looking
statements involve risks and uncertainties including, but not limited to, the
following: general economic conditions, including the performance of financial
markets and interest rates; [[the impact of the resolution of regulatory matters
on the Company's financial condition]]; and the Company's ability to leverage
the performance of its leading product franchises globally and build upon a
strong local presence in every region of the world to grow market share and
profitability.]]
# # #
A financial summary follows. Additional financial, statistical and
business-related information, as well as business and segment trends, is
included in the Financial Supplement.
(1) Adjusted Net Revenues include the effect of Credit Card Securitization
Activities within the Global Cards Business. Adjusted or Managed Basis
Reporting reflects credit card securitizations as if the receivables had
neither been sold nor held for sale. For a reconciliation between Managed
Basis Reporting and Reporting under Generally Accepted Accounting
Principles, see "Earnings Analysis - Managed Basis" on page 25.
(2) Excludes Proprietary Investment Activities and Corporate / Other.
(3) Includes the operations of Banamex from August 6, 2001 forward.
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 5
<Page>
GLOBAL CONSUMER [CITIGROUP LOGO]
CARDS
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
2001 2001 2001 2001 2002 2002 2002
-------- -------- -------- -------- -------- -------- --------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE(1) $ 3,606 $ 3,675 $ 4,032 $ 4,195 $ 4,150 $ 4,340 $ 4,689
Adjusted Operating Expenses 1,368 1,326 1,375 1,414 1,335 1,405 1,431
Adjusted Provision for Credit Losses(1) 1,322 1,482 1,552 1,694 1,911 1,818 1,941
-------- -------- -------- -------- -------- -------- --------
Core Income Before Taxes 916 867 1,105 1,087 904 1,117 1,317
Income Taxes 338 320 404 366 316 382 468
-------- -------- -------- -------- -------- -------- --------
CORE INCOME $ 578 $ 547 $ 701 $ 721 $ 588 $ 735 $ 849
======== ======== ======== ======== ======== ======== ========
Managed Average Assets (in billions of dollars) $ 117 $ 118 $ 122 $ 123 $ 123 $ 123 $ 129
======== ======== ======== ======== ======== ======== ========
Return on Managed Assets 2.00% 1.86% 2.28% 2.33% 1.94% 2.40% 2.61%
======== ======== ======== ======== ======== ======== ========
KEY INDICATORS
(in billions of dollars)
TOTAL EOP OPEN ACCOUNTS (IN MILLIONS):
North America 90.6 90.5 93.1 93.1 91.8 91.5 88.2
International 11.3 12.0 12.4 12.9 12.9 13.2 13.5
-------- -------- -------- -------- -------- -------- --------
Total 101.9 102.5 105.5 106.0 104.7 104.7 101.7
======== ======== ======== ======== ======== ======== ========
TOTAL SALES:
North America $ 54.8 $ 59.0 $ 58.5 $ 60.9 $ 54.9 $ 62.0 62.5
International 7.7 8.2 8.2 8.3 7.7 8.4 8.8
-------- -------- -------- -------- -------- -------- --------
Total $ 62.5 $ 67.2 $ 66.7 $ 69.2 $ 62.6 $ 70.4 71.3
======== ======== ======== ======== ======== ======== ========
AVERAGE MANAGED LOANS:
North America $ 102.2 $ 102.4 $ 105.9 $ 107.6 $ 107.6 $ 108.0 $ 111.1
International 9.5 9.8 10.4 10.4 10.2 10.6 10.9
-------- -------- -------- -------- -------- -------- --------
Total $ 111.7 $ 112.2 $ 116.3 $ 118.0 $ 117.8 $ 118.6 $ 122.0
======== ======== ======== ======== ======== ======== ========
MANAGED NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
North America $ 1,217 $ 1,401 $ 1,448 $ 1,589 $ 1,681 $ 1,719 $ 1,616
International 90 102 100 104 112 123 151
-------- -------- -------- -------- -------- -------- --------
Total $ 1,307 $ 1,503 $ 1,548 $ 1,693 $ 1,793 $ 1,842 $ 1,767
======== ======== ======== ======== ======== ======== ========
END OF PERIOD MANAGED RECEIVABLES $ 111.9 $ 116.0 $ 119.5 $ 122.6 $ 118.9 $ 122.4 $ 125.1
NET CREDIT LOSS RATIO 4.74% 5.37% 5.28% 5.69% 6.17% 6.23% 5.75%
LOANS 90+DAYS PAST DUE:
In millions of dollars $ 2,001 $ 1,938 $ 2,119 $ 2,384 $ 2,488 $ 2,248 $ 2,305
% 1.80% 1.68% 1.79% 1.96% 2.11% 1.85% 1.86%
<Caption>
4Q 2002 VS. YTD YTD YTD 4Q 2002 VS.
4Q 4Q 2001 INCREASE/ 4Q 4Q YTD 4Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
-------- ----------------- -------- -------- ---------------------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE(1) $ 4,724 13% $ 15,508 $ 17,903 15%
Adjusted Operating Expenses 1,412 - 5,483 5,583 2%
Adjusted Provision for Credit Losses(1) 1,869 10% 6,050 7,539 25%
-------- -------- --------
Core Income Before Taxes 1,443 33% 3,975 4,781 20%
Income Taxes 504 38% 1,428 1,670 17%
-------- -------- --------
CORE INCOME $ 939 30% $ 2,547 $ 3,111 22%
======== ======== ========
Managed Average Assets (in billions of dollars) $ 132 7% $ 120 $ 127 6%
======== ======== ========
Return on Managed Assets 2.82% 2.12% 2.45%
======== ======== ========
KEY INDICATORS
(in billions of dollars)
TOTAL EOP OPEN ACCOUNTS (IN MILLIONS):
North America 88.7 (5%)
International 13.5 5%
--------
Total 102.2 (4%)
========
TOTAL SALES:
North America 65.7 8% $ 233.2 $ 245.1 5%
International 9.1 10% 32.4 34.0 5%
-------- -------- --------
Total 74.8 8% $ 265.6 $ 279.1 5%
======== ======== ========
AVERAGE MANAGED LOANS:
North America $ 114.1 6% $ 104.6 $ 110.2 5%
International 11.3 9% 10.0 10.8 8%
-------- -------- --------
Total $ 125.4 6% $ 114.6 $ 121.0 6%
======== ======== ========
MANAGED NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
North America $ 1,652 4% $ 5,655 $ 6,668 18%
International 121 16% 396 507 28%
-------- -------- --------
Total $ 1,773 5% $ 6,051 $ 7,175 19%
======== ======== ========
END OF PERIOD MANAGED RECEIVABLES $ 131.9 8%
NET CREDIT LOSS RATIO 5.61%
LOANS 90+DAYS PAST DUE:
In millions of dollars $ 2,398 1%
% 1.84%
</Table>
(1) Adjusted Net Revenues include the effect of Credit Card Securitization
Activities within the Global Cards Business. Adjusted or Managed Basis
Reporting reflects credit card securitizations as if the receivables had
neither been sold nor held for sale. For a reconciliation between Managed
Basis Reporting and Reporting under Generally Accepted Accounting
Principles, see "Earnings Analysis - Managed Basis" on page 25.
Reclassified to conform to the current period's presentation.
Page 6
<Page>
GLOBAL CONSUMER [CITIGROUP LOGO]
CARDS
GEOGRAPHIC DISTRIBUTION
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
2001 2001 2001 2001 2002 2002 2002
-------- -------- -------- -------- -------- -------- --------
GEOGRAPHIC DISTRIBUTION
NORTH AMERICA
ADJUSTED REVENUES, NET OF INTEREST EXPENSE(1) $ 3,047 $ 3,130 $ 3,470 $ 3,738 $ 3,609 $ 3,768 $ 4,109
Adjusted Operating Expenses 1,070 1,037 1,096 1,138 1,053 1,104 1,154
Adjusted Provision for Credit Losses(1) 1,229 1,379 1,449 1,589 1,681 1,719 1,822
-------- -------- -------- -------- -------- -------- --------
Core Income Before Taxes 748 714 925 1,011 875 945 1,133
Income Taxes 279 266 343 343 315 323 405
-------- -------- -------- -------- -------- -------- --------
CORE INCOME $ 469 $ 448 $ 582 $ 668 $ 560 $ 622 $ 728
======== ======== ======== ======== ======== ======== ========
Managed Average Assets (in billions of dollars) $ 107 $ 107 $ 111 $ 112 $ 112 $ 112 $ 117
======== ======== ======== ======== ======== ======== ========
Return on Managed Assets 1.78% 1.68% 2.08% 2.37% 2.03% 2.23% 2.47%
======== ======== ======== ======== ======== ======== ========
INTERNATIONAL
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 559 $ 545 $ 562 $ 457 $ 541 $ 572 $ 580
Adjusted Operating Expenses 298 289 279 276 282 301 277
Provision for Credit Losses 93 103 103 105 230 99 119
-------- -------- -------- -------- -------- -------- --------
Core Income Before Taxes 168 153 180 76 29 172 184
Income Taxes 59 54 61 23 1 59 63
-------- -------- -------- -------- -------- -------- --------
CORE INCOME $ 109 $ 99 $ 119 $ 53 $ 28 $ 113 $ 121
======== ======== ======== ======== ======== ======== ========
Average Assets (in billions of dollars) $ 10 $ 11 $ 11 $ 11 $ 11 $ 11 $ 12
======== ======== ======== ======== ======== ======== ========
Return on Assets 4.42% 3.61% 4.29% 1.91% 1.03% 4.12% 4.00%
======== ======== ======== ======== ======== ======== ========
<Caption>
4Q 2002 VS. YTD YTD YTD 4Q 2002 VS.
4Q 4Q 2001 INCREASE/ 4Q 4Q YTD 4Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
-------- ----------------- -------- -------- ---------------------
GEOGRAPHIC DISTRIBUTION
NORTH AMERICA
ADJUSTED REVENUES, NET OF INTEREST EXPENSE(1) $ 4,119 10% $ 13,385 $ 15,605 17%
Adjusted Operating Expenses 1,123 (1%) 4,341 4,434 2%
Adjusted Provision for Credit Losses(1) 1,736 9% 5,646 6,958 23%
-------- -------- --------
Core Income Before Taxes 1,260 25% 3,398 4,213 24%
Income Taxes 442 29% 1,231 1,485 21%
-------- -------- --------
CORE INCOME $ 818 22% $ 2,167 $ 2,728 26%
======== ======== ========
Managed Average Assets (in billions of dollars) $ 120 7% $ 109 $ 115 6%
======== ======== ========
Return on Managed Assets 2.70% 1.99% 2.37%
======== ======== ========
INTERNATIONAL
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 605 32% $ 2,123 $ 2,298 8%
Adjusted Operating Expenses 289 5% 1,142 1,149 1%
Provision for Credit Losses 133 27% 404 581 44%
-------- -------- --------
Core Income Before Taxes 183 NM 577 568 (2%)
Income Taxes 62 NM 197 185 (6%)
-------- -------- --------
CORE INCOME $ 121 NM $ 380 $ 383 1%
======== ======== ========
Average Assets (in billions of dollars) $ 12 9% $ 11 $ 12 9%
======== ======== ========
Return on Assets 4.00% 3.45% 3.19%
======== ======== ========
</Table>
(1) On a managed basis.
Reclassified to conform to the current period's presentation.
Page 7
<Page>
GLOBAL CONSUMER [CITIGROUP LOGO]
CARDS
CITICARDS AND DINERS CLUB N.A. - SUPPLEMENTAL DATA
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
2001 2001 2001 2001 2002 2002 2002
-------- -------- -------- -------- -------- -------- --------
CITICARDS AND DINERS CLUB N.A.:
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 3,012 $ 3,085 $ 3,340 $ 3,548 $ 3,438 $ 3,589 $ 3,929
Adjusted Operating Expenses 1,052 1,014 1,017 1,035 966 1,029 1,075
Adjusted Provision for Credit Losses 1,221 1,371 1,434 1,567 1,659 1,705 1,807
-------- -------- -------- -------- -------- -------- --------
Core Income Before Taxes 739 700 889 946 813 855 1,047
Income Taxes 274 260 332 333 302 307 388
-------- -------- -------- -------- -------- -------- --------
CORE INCOME $ 465 $ 440 $ 557 $ 613 $ 511 $ 548 $ 659
======== ======== ======== ======== ======== ======== ========
Managed Average Assets (in billions of dollars) $ 106 $ 106 $ 109 $ 110 $ 110 $ 110 $ 113
======== ======== ======== ======== ======== ======== ========
Return on Managed Assets 1.78% 1.66% 2.03% 2.21% 1.88% 2.00% 2.31%
======== ======== ======== ======== ======== ======== ========
CITICARDS(1):
KEY INDICATORS:
(in billions of dollars)
Net Interest Revenue (in millions of dollars)(2) $ 2,379 $ 2,421 $ 2,696 $ 2,904 $ 2,767 $ 2,717 $ 2,856
% of Average Managed Loans 9.63% 9.65% 10.38% 11.04% 10.77% 10.41% 10.51%
Risk Adjusted Revenue (in millions of dollars)(3) $ 1,716 $ 1,613 $ 1,838 $ 1,909 $ 1,705 $ 1,771 $ 2,259
% of Average Managed Loans 6.95% 6.43% 7.08% 7.25% 6.64% 6.78% 8.31%
Adjusted Operating Expenses as % of Average Managed Loans 3.99% 3.78% 3.67% 3.56% 3.53% 3.72% 3.75%
End of Period Managed Receivables $ 100.5 $ 103.9 $ 105.6 $ 108.9 $ 105.4 $ 108.2 $ 110.8
Total EOP Open Accounts (in millions) 88.3 89.1 89.2 89.2 87.9 87.4 84.2
Total Sales $ 51.2 $ 55.6 $ 55.0 $ 56.7 $ 50.8 $ 57.7 $ 58.3
END OF PERIOD LOANS:
On Balance Sheet $ 32.6 $ 32.6 $ 33.0 $ 34.2 $ 31.8 $ 35.2 $ 38.5
Securitized 60.1 61.4 65.2 67.0 65.9 65.8 64.6
Held for Sale 7.0 9.0 6.5 6.5 6.5 6.5 6.5
-------- -------- -------- -------- -------- -------- --------
Total $ 99.7 $ 103.0 $ 104.7 $ 107.7 $ 104.2 $ 107.5 $ 109.6
======== ======== ======== ======== ======== ======== ========
AVERAGE LOANS:
On Balance Sheet $ 34.7 $ 33.5 $ 33.5 $ 33.0 $ 30.9 $ 33.0 $ 36.8
Securitized 58.5 59.7 61.3 64.9 66.8 65.2 64.6
Held for Sale 7.0 7.4 8.2 6.5 6.5 6.5 6.5
-------- -------- -------- -------- -------- -------- --------
Total $ 100.2 $ 100.6 $ 103.0 $ 104.4 $ 104.2 $ 104.7 $ 107.9
======== ======== ======== ======== ======== ======== ========
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
On Balance Sheet $ 465 $ 481 $ 541 $ 615 $ 633 $ 615 $ 634
Securitized 668 812 790 870 935 989 874
Held for Sale 63 90 92 69 78 92 86
-------- -------- -------- -------- -------- -------- --------
Total $ 1,196 $ 1,383 $ 1,423 $ 1,554 $ 1,646 $ 1,696 $ 1,594
======== ======== ======== ======== ======== ======== ========
COINCIDENT NET CREDIT LOSS RATIO 4.84% 5.51% 5.48% 5.91% 6.41% 6.50% 5.86%
12 MONTH LAGGED NET CREDIT LOSS RATIO 5.72% 6.29% 5.96% 6.23% 6.66% 6.76% 6.14%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 1,836 $ 1,775 $ 1,908 $ 2,135 $ 2,219 $ 1,982 $ 2,063
% 1.84% 1.72% 1.82% 1.98% 2.13% 1.84% 1.88%
<Caption>
4Q 2002 VS. YTD YTD YTD 4Q 2002 VS.
4Q 4Q 2001 INCREASE/ 4Q 4Q YTD 4Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
-------- ----------------- -------- -------- ---------------------
CITICARDS AND DINERS CLUB N.A.:
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 3,930 11% $ 12,985 $ 14,886 15%
Adjusted Operating Expenses 1,032 - 4,118 4,102 -
Adjusted Provision for Credit Losses 1,723 10% 5,593 6,894 23%
-------- -------- --------
Core Income Before Taxes 1,175 24% 3,274 3,890 19%
Income Taxes 436 31% 1,199 1,433 20%
-------- -------- --------
CORE INCOME $ 739 21% $ 2,075 $ 2,457 18%
======== ======== ========
Managed Average Assets (in billions of dollars) $ 116 5% $ 108 $ 112 4%
======== ======== ========
Return on Managed Assets 2.53% 1.92% 2.19%
======== ======== ========
CITICARDS(1):
KEY INDICATORS:
(in billions of dollars)
Net Interest Revenue (in millions of dollars)(2) $ 2,893 - $ 10,400 $ 11,233 8%
% of Average Managed Loans 10.37% 10.19% 10.50%
Risk Adjusted Revenue (in millions of dollars)(3) $ 2,220 16% $ 7,076 $ 7,955 12%
% of Average Managed Loans 7.96% 6.93% 7.43%
Adjusted Operating Expenses as % of Average Managed Loans 3.51%
End of Period Managed Receivables $ 116.6 7%
Total EOP Open Accounts (in millions) 84.6 (5%)
Total Sales $ 61.5 8%
END OF PERIOD LOANS:
On Balance Sheet $ 41.5 21%
Securitized 67.1 -
Held for Sale 6.5 -
--------
Total $ 115.1 7%
========
AVERAGE LOANS:
On Balance Sheet $ 39.9 21% $ 33.7 $ 35.2 4%
Securitized 64.3 (1%) 61.1 65.2 7%
Held for Sale 6.5 - 7.3 6.5 (11%)
-------- -------- --------
Total $ 110.7 6% $ 102.1 $ 106.9 5%
======== ======== ========
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
On Balance Sheet $ 572 (7%) $ 2,102 $ 2,454 17%
Securitized 962 11% 3,140 3,760 20%
Held for Sale 99 43% 314 355 13%
-------- -------- --------
Total $ 1,633 5% $ 5,556 $ 6,569 18%
======== ======== ========
COINCIDENT NET CREDIT LOSS RATIO 5.85%
12 MONTH LAGGED NET CREDIT LOSS RATIO 6.21%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 2,142 --
% 1.86%
</Table>
(1) CitiCards is included within the North American Region of Cards and excludes
Diners Club N.A., Mexico and Puerto Rico.
(2) Includes delinquency and other risk-based charges.
(3) Risk Adjusted Revenue is adjusted revenues less managed net credit losses.
Reclassified to conform to the current period's presentation.
Page 8
<Page>
GLOBAL CONSUMER [CITIGROUP LOGO]
CONSUMER FINANCE
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
2001 2001 2001 2001 2002 2002 2002
-------- -------- -------- -------- -------- -------- --------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 2,153 $ 2,178 $ 2,300 $ 2,237 $ 2,298 $ 2,406 $ 2,439
Adjusted Operating Expenses 922 813 812 755 728 764 744
Provision for Benefits, Claims and Credit Losses 603 594 623 709 737 763 829
-------- -------- -------- -------- -------- -------- --------
Core Income Before Taxes 628 771 865 773 833 879 866
Income Taxes 231 280 316 285 297 314 311
-------- -------- -------- -------- -------- -------- --------
CORE INCOME $ 397 $ 491 $ 549 $ 488 $ 536 $ 565 $ 555
======== ======== ======== ======== ======== ======== ========
Average Assets (in billions of dollars) $ 82 $ 83 $ 85 $ 86 $ 87 $ 90 $ 91
======== ======== ======== ======== ======== ======== ========
Return on Assets 1.96% 2.37% 2.56% 2.25% 2.50% 2.52% 2.42%
======== ======== ======== ======== ======== ======== ========
KEY INDICATORS
AVERAGE LOANS (IN BILLIONS OF DOLLARS):
Real estate secured loans $ 43.1 $ 43.4 $ 44.5 $ 45.3 $ 45.5 $ 46.3 $ 47.0
Personal loans 18.7 18.9 19.4 19.6 19.2 20.6 21.4
Auto 3.8 4.4 4.9 5.4 5.7 6.1 6.5
Sales finance and other 3.5 3.5 3.5 3.5 3.0 3.6 4.2
-------- -------- -------- -------- -------- -------- --------
Total $ 69.1 $ 70.2 $ 72.3 $ 73.8 $ 73.4 $ 76.6 $ 79.1
======== ======== ======== ======== ======== ======== ========
AVERAGE LOANS (IN BILLIONS OF DOLLARS):
North America $ 56.2 $ 57.0 $ 58.2 $ 59.2 $ 59.8 $ 60.9 $ 62.3
International 12.9 13.2 14.1 14.6 13.6 15.7 16.8
-------- -------- -------- -------- -------- -------- --------
Total $ 69.1 $ 70.2 $ 72.3 $ 73.8 $ 73.4 $ 76.6 $ 79.1
======== ======== ======== ======== ======== ======== ========
AVERAGE YIELD
North America 14.05% 13.86% 13.53% 13.20% 13.18% 13.06% 12.76%
International 27.25% 25.36% 24.83% 23.07% 22.43% 23.37% 22.63%
Total 16.50% 16.02% 15.73% 15.14% 14.93% 15.15% 14.86%
AVERAGE NET INTEREST MARGIN
North America 7.92% 8.18% 8.31% 8.36% 8.57% 8.50% 8.34%
International 23.78% 22.10% 21.78% 20.84% 20.59% 21.92% 20.97%
Total 10.87% 10.79% 10.93% 10.83% 10.84% 11.22% 11.02%
NET CREDIT LOSS RATIO 2.99% 2.91% 2.94% 3.54% 3.63% 3.71% 3.83%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 1,764 $ 1,943 $ 2,134 $ 2,243 $ 2,213 $ 2,131 $ 2,101
% 2.54% 2.74% 2.89% 3.04% 2.97% 2.72% 2.64%
NUMBER OF OFFICES:
North America 2,576 2,484 2,468 2,413 2,394 2,410 2,420
International 1,180 1,183 1,174 1,150 1,141 1,198 1,182
-------- -------- -------- -------- -------- -------- --------
Total 3,756 3,667 3,642 3,563 3,535 3,608 3,602
======== ======== ======== ======== ======== ======== ========
<Caption>
4Q 2002 VS. YTD YTD YTD 4Q 2002 VS.
4Q 4Q 2001 INCREASE/ 4Q 4Q YTD 4Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
-------- ----------------- -------- -------- ---------------------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 2,511 12% $ 8,868 $ 9,654 9%
Adjusted Operating Expenses 758 - 3,302 2,994 (9%)
Provision for Benefits, Claims and Credit Losses 911 28% 2,529 3,240 28%
-------- -------- --------
Core Income Before Taxes 842 9% 3,037 3,420 13%
Income Taxes 282 (1%) 1,112 1,204 8%
-------- -------- --------
CORE INCOME $ 560 15% $ 1,925 $ 2,216 15%
======== ======== ========
Average Assets (in billions of dollars) $ 95 10% $ 84 $ 91 8%
======== ======== ========
Return on Assets 2.34% 2.29% 2.44%
======== ======== ========
KEY INDICATORS
AVERAGE LOANS (IN BILLIONS OF DOLLARS):
Real estate secured loans $ 48.8 8% $ 44.1 $ 46.9 6%
Personal loans 21.3 9% 19.2 20.6 7%
Auto 8.0 48% 4.6 6.6 43%
Sales finance and other 4.2 20% 3.5 3.8 9%
-------- -------- --------
Total $ 82.3 12% $ 71.4 $ 77.9 9%
======== ======== ========
AVERAGE LOANS (IN BILLIONS OF DOLLARS):
North America $ 65.9 11% $ 57.7 $ 62.3 8%
International 16.4 12% 13.7 15.6 14%
-------- -------- --------
Total $ 82.3 12% $ 71.4 $ 77.9 9%
======== ======== ========
AVERAGE YIELD
North America 12.56%
International 22.45%
Total 14.52%
AVERAGE NET INTEREST MARGIN
North America 8.38%
International 20.79%
Total 10.85%
NET CREDIT LOSS RATIO 4.04%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 2,119 (6%)
% 2.52%
NUMBER OF OFFICES:
North America 2,411 -
International 1,134 (1%)
--------
Total 3,545 (1%)
========
</Table>
Reclassified to conform to the current period's presentation.
Page 9
<Page>
GLOBAL CONSUMER [CITIGROUP LOGO]
CONSUMER FINANCE
GEOGRAPHIC DISTRIBUTION
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q
2001 2001 2001 2001 2002
---------- ---------- ---------- ---------- ----------
GEOGRAPHIC DISTRIBUTION
NORTH AMERICA
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 1,366 $ 1,388 $ 1,476 $ 1,457 $ 1,539
Adjusted Operating Expenses 593 523 515 470 503
Provision for Benefits, Claims and Credit Losses 415 419 439 504 509
---------- ---------- ---------- ---------- ----------
Core Income Before Taxes 358 446 522 483 527
Income Taxes 134 164 195 181 193
---------- ---------- ---------- ---------- ----------
CORE INCOME $ 224 $ 282 $ 327 $ 302 $ 334
========== ========== ========== ========== ==========
Average Assets (in billions of dollars) $ 65 $ 67 $ 68 $ 68 $ 69
========== ========== ========== ========== ==========
Return on Assets 1.40% 1.69% 1.91% 1.76% 1.96%
========== ========== ========== ========== ==========
INTERNATIONAL
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 787 $ 790 $ 824 $ 780 $ 759
Adjusted Operating Expenses 329 290 297 285 225
Provision for Benefits, Claims, and Credit Losses 188 175 184 205 228
---------- ---------- ---------- ---------- ----------
Core Income Before Taxes 270 325 343 290 306
Income Taxes 97 116 121 104 104
---------- ---------- ---------- ---------- ----------
CORE INCOME $ 173 $ 209 $ 222 $ 186 $ 202
========== ========== ========== ========== ==========
Average Assets (in billions of dollars) $ 17 $ 16 $ 17 $ 18 $ 18
========== ========== ========== ========== ==========
Return on Assets 4.13% 5.24% 5.18% 4.10% 4.55%
========== ========== ========== ========== ==========
<Caption>
4Q 2002 VS.
2Q 3Q 4Q 4Q 2001 INCREASE/
2002 2002 2002 (DECREASE)
---------- ---------- ---------- -----------------
GEOGRAPHIC DISTRIBUTION
NORTH AMERICA
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 1,537 $ 1,536 $ 1,614 11%
Adjusted Operating Expenses 475 474 505 7%
Provision for Benefits, Claims and Credit Losses 525 499 551 9%
---------- ---------- ----------
Core Income Before Taxes 537 563 558 16%
Income Taxes 196 206 200 10%
---------- ---------- ----------
CORE INCOME $ 341 $ 357 $ 358 19%
========== ========== ==========
Average Assets (in billions of dollars) $ 70 $ 71 $ 75 10%
========== ========== ==========
Return on Assets 1.95% 1.99% 1.89%
========== ========== ==========
INTERNATIONAL
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 869 $ 903 $ 897 15%
Adjusted Operating Expenses 289 270 253 (11%)
Provision for Benefits, Claims, and Credit Losses 238 330 360 76%
---------- ---------- ----------
Core Income Before Taxes 342 303 284 (2%)
Income Taxes 118 105 82 (21%)
---------- ---------- ----------
CORE INCOME $ 224 $ 198 $ 202 9%
========== ========== ==========
Average Assets (in billions of dollars) $ 20 $ 20 $ 20 11%
========== ========== ==========
Return on Assets 4.49% 3.93% 4.01%
========== ========== ==========
<Caption>
YTD YTD YTD 4Q 2002 VS.
4Q 4Q YTD 4Q 2001 INCREASE/
2001 2002 (DECREASE)
---------- ---------- ---------------------
GEOGRAPHIC DISTRIBUTION
NORTH AMERICA
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 5,687 $ 6,226 9%
Adjusted Operating Expenses 2,101 1,957 (7%)
Provision for Benefits, Claims and Credit Losses 1,777 2,084 17%
---------- ----------
Core Income Before Taxes 1,809 2,185 21%
Income Taxes 674 795 18%
---------- ----------
CORE INCOME $ 1,135 $ 1,390 22%
========== ==========
Average Assets (in billions of dollars) $ 67 $ 71 6%
========== ==========
Return on Assets 1.69% 1.96%
========== ==========
INTERNATIONAL
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 3,181 $ 3,428 8%
Adjusted Operating Expenses 1,201 1,037 (14%)
Provision for Benefits, Claims, and Credit Losses 752 1,156 54%
---------- ----------
Core Income Before Taxes 1,228 1,235 1%
Income Taxes 438 409 (7%)
---------- ----------
CORE INCOME $ 790 $ 826 5%
========== ==========
Average Assets (in billions of dollars) $ 17 $ 20 18%
========== ==========
Return on Assets 4.65% 4.13%
========== ==========
</Table>
Reclassified to conform to the current period's presentation.
Page 10
<Page>
GLOBAL CONSUMER [CITIGROUP LOGO]
CONSUMER FINANCE
CITIFINANCIAL - SUPPLEMENTAL DATA(1)
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q
2001 2001 2001 2001 2002
---------- ---------- ---------- ---------- ----------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 1,330 $ 1,346 $ 1,430 $ 1,405 $ 1,479
Adjusted Operating Expenses 569 502 492 443 475
Provision for Benefits, Claims and Credit Losses 408 412 431 495 500
---------- ---------- ---------- ---------- ----------
Core Income Before Taxes 353 432 507 467 504
Income Taxes 133 157 190 174 184
---------- ---------- ---------- ---------- ----------
CORE INCOME $ 220 $ 275 $ 317 $ 293 $ 320
========== ========== ========== ========== ==========
Average Assets (in billions of dollars) $ 64 $ 66 $ 67 $ 67 $ 68
========== ========== ========== ========== ==========
Return on Assets 1.39% 1.67% 1.88% 1.73% 1.91%
========== ========== ========== ========== ==========
KEY INDICATORS:
AVERAGE NET RECEIVABLES (IN BILLIONS OF DOLLARS):
Real estate secured loans - Other $ 34.5 $ 34.2 $ 34.1 $ 33.9 $ 33.3
Real estate secured loans - PFS Sourced 5.4 6.1 6.8 7.5 8.2
Personal loans 9.7 9.7 9.6 9.6 9.6
Auto 3.5 4.1 4.6 5.1 5.4
Sales finance and other 2.6 2.4 2.6 2.6 2.7
---------- ---------- ---------- ---------- ----------
Total $ 55.7 $ 56.5 $ 57.7 $ 58.7 $ 59.2
========== ========== ========== ========== ==========
Number of offices 2,430 2,336 2,320 2,221 2,199
Average yield 13.87% 13.65% 13.30% 12.95% 13.07%
Average net interest margin 7.76% 7.98% 8.09% 8.13% 8.41%
Net credit loss ratio 2.50% 2.46% 2.45% 3.06% 2.97%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 1,580 $ 1,751 $ 1,898 $ 1,991 $ 1,969
% 2.82% 3.07% 3.25% 3.38% 3.30%
<Caption>
4Q 2002 VS.
2Q 3Q 4Q 4Q 2001 INCREASE/
2002 2002 2002 (DECREASE)
---------- ---------- ---------- -----------------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 1,476 $ 1,473 $ 1,552 10%
Adjusted Operating Expenses 447 445 477 8%
Provision for Benefits, Claims and Credit Losses 516 488 539 9%
---------- ---------- ----------
Core Income Before Taxes 513 540 536 15%
Income Taxes 187 197 192 10%
---------- ---------- ----------
CORE INCOME $ 326 $ 343 $ 344 17%
========== ========== ==========
Average Assets (in billions of dollars) $ 69 $ 70 $ 74 10%
========== ========== ==========
Return on Assets 1.90% 1.94% 1.84%
========== ========== ==========
KEY INDICATORS:
AVERAGE NET RECEIVABLES (IN BILLIONS OF DOLLARS):
Real estate secured loans - Other $ 33.0 $ 32.9 $ 34.0 -
Real estate secured loans - PFS Sourced 9.1 9.5 10.2 36%
Personal loans 9.5 9.8 9.7 1%
Auto 5.8 6.2 7.8 53%
Sales finance and other 2.9 3.2 3.5 35%
---------- ---------- ----------
Total $ 60.3 $ 61.6 $ 65.2 11%
========== ========== ==========
Number of offices 2,199 2,207 2,186 (2%)
Average yield 12.76% 12.47% 12.28%
Average net interest margin 8.22% 8.06% 8.12%
Net credit loss ratio 3.07% 2.73% 3.05%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 1,816 $ 1,765 $ 1,778 (11%)
% 2.98% 2.83% 2.66%
<Caption>
YTD YTD YTD 4Q 2002 VS.
4Q 4Q YTD 4Q 2001 INCREASE/
2001 2002 (DECREASE)
---------- ---------- ---------------------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 5,511 $ 5,980 9%
Adjusted Operating Expenses 2,006 1,844 (8%)
Provision for Benefits, Claims and Credit Losses 1,746 2,043 17%
---------- ----------
Core Income Before Taxes 1,759 2,093 19%
Income Taxes 654 760 16%
---------- ----------
CORE INCOME $ 1,105 $ 1,333 21%
========== ==========
Average Assets (in billions of dollars) $ 66 $ 70 6%
========== ==========
Return on Assets 1.67% 1.90%
========== ==========
KEY INDICATORS:
AVERAGE NET RECEIVABLES (IN BILLIONS OF DOLLARS):
Real estate secured loans - Other $ 34.1 $ 33.2 (3%)
Real estate secured loans - PFS Sourced 6.5 9.3 43%
Personal loans 9.7 9.7 -
Auto 4.3 6.3 47%
Sales finance and other 2.6 3.1 19%
---------- ----------
Total $ 57.2 $ 61.6 8%
========== ==========
Number of offices
Average yield 13.43% 12.63%
Average net interest margin 7.99% 8.20%
Net credit loss ratio
LOANS 90+ DAYS PAST DUE:
In millions of dollars
%
</Table>
(1) CitiFinancial is included within the North American Region of Consumer
Finance and excludes Mexico and Puerto Rico.
Reclassified to conform to the current period's presentation.
Page 11
<Page>
GLOBAL CONSUMER [CITIGROUP LOGO]
RETAIL BANKING
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q
2001 2001 2001 2001 2002
---------- ---------- ---------- ---------- ----------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 2,505 $ 2,571 $ 3,042 $ 3,163 $ 3,339
Adjusted Operating Expenses 1,404 1,412 1,612 1,744 1,786
Provision for Benefits, Claims and Credit Losses 237 230 291 303 435
---------- ---------- ---------- ---------- ----------
Core Income Before Taxes and Minority Interest 864 929 1,139 1,116 1,118
Income Taxes 306 336 402 386 387
Minority Interest, net of tax 5 7 6 9 10
---------- ---------- ---------- ---------- ----------
CORE INCOME $ 553 $ 586 $ 731 $ 721 $ 721
========== ========== ========== ========== ==========
Average Assets (in billions of dollars) $ 119 $ 119 $ 152 $ 167 $ 173
========== ========== ========== ========== ==========
Return on Assets 1.88% 1.98% 1.91% 1.71% 1.69%
========== ========== ========== ========== ==========
KEY INDICATORS (IN BILLIONS OF DOLLARS):
AVERAGE CUSTOMER DEPOSITS:
North America (excluding Mexico) $ 50.2 $ 51.1 $ 59.0 $ 61.0 $ 62.6
Mexico 2.7 2.7 21.7 24.4 26.7
Western Europe 12.7 12.8 13.4 13.5 12.4
Japan 14.3 14.7 15.4 15.3 15.8
Asia (excluding Japan) 36.1 35.5 35.3 34.9 35.0
Latin America 10.0 9.6 9.2 8.9 8.3
CEEMEA 5.6 5.8 6.0 6.1 6.1
---------- ---------- ---------- ---------- ----------
Total $ 131.6 $ 132.2 $ 160.0 $ 164.1 $ 166.9
========== ========== ========== ========== ==========
AVERAGE LOANS BY TYPE:
Mortgages 46.9 47.3 51.0 52.6 52.9
Student Loans 16.8 17.2 17.7 18.4 19.2
Auto 5.1 4.9 5.5 4.7 4.6
Personal 15.2 14.8 15.6 15.6 15.2
Commercial / Other 7.7 7.6 11.8 13.2 13.7
---------- ---------- ---------- ---------- ----------
Total(1) $ 91.7 $ 91.8 $ 101.6 $ 104.5 $ 105.6
========== ========== ========== ========== ==========
AVERAGE LOANS:
North America $ 53.8 $ 54.7 $ 63.8 $ 66.8 $ 68.9
International 37.9 37.1 37.8 37.7 36.7
---------- ---------- ---------- ---------- ----------
Total(1) $ 91.7 $ 91.8 $ 101.6 $ 104.5 $ 105.6
========== ========== ========== ========== ==========
EOP ACCOUNTS (IN MILLIONS):
North America 11.8 11.9 22.3 21.8 21.9
International 18.3 18.5 18.8 18.9 19.0
---------- ---------- ---------- ---------- ----------
Total 30.1 30.4 41.1 40.7 40.9
========== ========== ========== ========== ==========
OTHER KEY INDICATORS
TOTAL RETAIL BANKING:
Net Credit Loss Ratio 0.55% 0.53% 0.72% 0.78% 0.78%
Loans 90+ Days Past Due
In millions of dollars $ 2,270 $ 2,475 $ 3,316 $ 3,437 $ 3,481
% 2.48% 2.71% 3.19% 3.30% 3.34%
Total ATMs 4,573 4,607 8,918 8,970 9,055
MUTUAL FUND / UIT SALES AT NAV (IN MILLIONS OF
DOLLARS)(2):
Citibanking North America $ 1,706 $ 1,244 $ 916 $ 856 $ 841
Primerica Financial Services $ 994 $ 868 $ 777 $ 770 $ 937
VARIABLE ANNUITY NET WRITTEN PREMIUMS & DEPOSITS
(IN MILLIONS OF DOLLARS):
Citibanking North America $ 304 $ 302 $ 316 $ 372 $ 367
Primerica Financial Services $ 248 $ 237 $ 222 $ 217 $ 225
CONSUMER ASSETS:
Loans Serviced for Others $ 64.2 $ 66.0 $ 69.6 $ 70.1 $ 68.7
Mortgage Originations $ 5.9 $ 8.8 $ 8.1 $ 9.5 $ 10.7
Student Loan Originations $ 1.5 $ 0.5 $ 1.2 $ 1.2 $ 1.5
PRIMERICA FINANCIAL SERVICES:
Agents Licensed for Life Insurance 88,907 93,998 93,156 95,679 98,272
Life Insurance in Force (in billions of
dollars) $ 415.4 $ 422.9 $ 427.7 $ 434.8 $ 441.3
Loan Volumes (in millions of dollars)(2) $ 694.5 $ 1,091.9 $ 1,006.1 $ 1,077.3 $ 1,253.8
<Caption>
4Q 2002 VS.
2Q 3Q 4Q 4Q 2001 INCREASE/
2002 2002 2002 (DECREASE)
---------- ---------- ---------- -----------------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 3,212 $ 3,317 $ 3,467 10%
Adjusted Operating Expenses 1,774 1,720 1,864 7%
Provision for Benefits, Claims and Credit Losses 295 260 245 (19%)
---------- ---------- ----------
Core Income Before Taxes and Minority Interest 1,143 1,337 1,358 22%
Income Taxes 391 462 445 15%
Minority Interest, net of tax 9 8 13 44%
---------- ---------- ----------
CORE INCOME $ 743 $ 867 $ 900 25%
========== ========== ==========
Average Assets (in billions of dollars) $ 171 $ 166 $ 193 16%
========== ========== ==========
Return on Assets 1.74% 2.07% 1.85%
========== ========== ==========
KEY INDICATORS (IN BILLIONS OF DOLLARS):
AVERAGE CUSTOMER DEPOSITS:
North America (excluding Mexico) $ 62.9 $ 62.4 $ 77.6 27%
Mexico 24.7 24.1 23.5 (4%)
Western Europe 12.9 13.0 13.2 (2%)
Japan 17.2 18.4 18.7 22%
Asia (excluding Japan) 35.8 34.6 34.0 (3%)
Latin America 7.4 6.7 7.0 (21%)
CEEMEA 6.3 6.6 6.7 10%
---------- ---------- ----------
Total $ 167.2 $ 165.8 $ 180.7 10%
========== ========== ==========
AVERAGE LOANS BY TYPE:
Mortgages 54.0 55.1 71.5 36%
Student Loans 19.3 20.1 22.6 23%
Auto 4.5 4.4 4.1 (13%)
Personal 16.3 17.0 17.7 13%
Commercial / Other 12.8 11.5 15.5 17%
---------- ---------- ----------
Total(1) $ 106.9 $ 108.1 $ 131.4 26%
========== ========== ==========
AVERAGE LOANS:
North America $ 68.8 $ 69.8 $ 94.8 42%
International 38.1 38.3 36.6 (3%)
---------- ---------- ----------
Total(1) $ 106.9 $ 108.1 $ 131.4 26%
========== ========== ==========
EOP ACCOUNTS (IN MILLIONS):
North America 22.5 22.4 26.5 22%
International 19.3 18.6 18.2 (4%)
---------- ---------- ----------
Total 41.8 41.0 44.7 10%
========== ========== ==========
OTHER KEY INDICATORS
TOTAL RETAIL BANKING:
Net Credit Loss Ratio 0.80% 0.68% 0.46%
Loans 90+ Days Past Due
In millions of dollars $ 3,561 $ 3,490 $ 4,238 23%
% 3.31% 3.24% 2.90%
Total ATMs 9,167 9,261 9,812 9%
MUTUAL FUND / UIT SALES AT NAV (IN MILLIONS OF
DOLLARS)(2):
Citibanking North America $ 866 $ 783 $ 735 (14%)
Primerica Financial Services $ 964 $ 718 $ 687 (11%)
VARIABLE ANNUITY NET WRITTEN PREMIUMS & DEPOSITS
(IN MILLIONS OF DOLLARS):
Citibanking North America $ 327 $ 375 $ 329 (12%)
Primerica Financial Services $ 250 $ 184 $ 156 (28%)
CONSUMER ASSETS:
Loans Serviced for Others $ 72.4 $ 76.2 $ 130.9 87%
Mortgage Originations $ 11.8 $ 12.7 $ 20.0 NM
Student Loan Originations $ 0.7 $ 2.2 $ 1.6 33%
PRIMERICA FINANCIAL SERVICES:
Agents Licensed for Life Insurance 101,358 105,567 107,378 12%
Life Insurance in Force (in billions of
dollars) $ 452.6 $ 459.1 $ 466.8 7%
Loan Volumes (in millions of dollars)(2) $ 1,139.8 $ 1,105.4 $ 1,237.4 15%
<Caption>
YTD YTD YTD 4Q 2002 VS.
4Q 4Q YTD 4Q 2001 INCREASE/
2001 2002 (DECREASE)
---------- ---------- ---------------------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 11,281 $ 13,335 18%
Adjusted Operating Expenses 6,172 7,144 16%
Provision for Benefits, Claims and Credit Losses 1,061 1,235 16%
---------- ----------
Core Income Before Taxes and Minority Interest 4,048 4,956 22%
Income Taxes 1,430 1,685 18%
Minority Interest, net of tax 27 40 48%
---------- ----------
CORE INCOME $ 2,591 $ 3,231 25%
========== ==========
Average Assets (in billions of dollars) $ 139 $ 176 27%
========== ==========
Return on Assets 1.86% 1.84%
========== ==========
KEY INDICATORS (IN BILLIONS OF DOLLARS):
AVERAGE CUSTOMER DEPOSITS:
North America (excluding Mexico) $ 55.3 $ 66.4 20%
Mexico 12.9 24.8 92%
Western Europe 13.1 12.9 (2%)
Japan 14.9 17.5 17%
Asia (excluding Japan) 35.5 34.9 (2%)
Latin America 9.4 7.4 (21%)
CEEMEA 5.9 6.3 7%
---------- ----------
Total $ 147.0 $ 170.2 16%
========== ==========
AVERAGE LOANS BY TYPE:
Mortgages $ 49.5 $ 58.4 18%
Student Loans 17.5 20.3 16%
Auto 5.1 4.4 (14%)
Personal 15.3 16.6 8%
Commercial / Other 10.0 13.3 33%
---------- ----------
Total(1) $ 97.4 $ 113.0 16%
========== ==========
AVERAGE LOANS:
North America $ 59.8 $ 75.6 26%
International 37.6 37.4 (1%)
---------- ----------
Total(1) $ 97.4 $ 113.0 16%
========== ==========
EOP ACCOUNTS (IN MILLIONS):
North America
International
Total
OTHER KEY INDICATORS
TOTAL RETAIL BANKING:
Net Credit Loss Ratio
Loans 90+ Days Past Due
In millions of dollars
%
Total ATMs
MUTUAL FUND / UIT SALES AT NAV (IN MILLIONS OF
DOLLARS)(2):
Citibanking North America
Primerica Financial Services
VARIABLE ANNUITY NET WRITTEN PREMIUMS & DEPOSITS
(IN MILLIONS OF DOLLARS):
Citibanking North America
Primerica Financial Services
CONSUMER ASSETS:
Loans Serviced for Others
Mortgage Originations
Student Loan Originations
PRIMERICA FINANCIAL SERVICES:
Agents Licensed for Life Insurance
Life Insurance in Force (in billions of
dollars)
Loan Volumes (in millions of dollars)(2)
</Table>
(1) Includes loans held for sale.
(2) Represents loan products marketed by PFS; the receivables are primarily
reflected in the assets of Consumer Finance.
Reclassified to conform to the current period's presentation.
Page 12
<Page>
GLOBAL CONSUMER [CITIGROUP LOGO]
RETAIL BANKING
GEOGRAPHIC AND BUSINESS DISTRIBUTION
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4QQ 1Q
2001 2001 2001 2001 2002
---------- ---------- ---------- ---------- ----------
REVENUES:
NORTH AMERICA:
Citibanking North America $ 651 $ 695 $ 760 $ 766 $ 801
Consumer Assets 239 265 257 261 299
Primerica Financial Services 490 497 493 499 512
Mexico 24 28 399 554 565
---------- ---------- ---------- ---------- ----------
TOTAL NORTH AMERICA RETAIL BANKING $ 1,404 $ 1,485 $ 1,909 $ 2,080 $ 2,177
---------- ---------- ---------- ---------- ----------
INTERNATIONAL:
Western Europe $ 390 $ 373 $ 398 $ 406 $ 415
Japan 106 109 114 106 104
Asia (excluding Japan) 319 319 323 336 327
Latin America 205 200 210 148 224
CEEMEA 81 85 88 87 92
---------- ---------- ---------- ---------- ----------
TOTAL INTERNATIONAL RETAIL BANKING 1,101 1,086 1,133 1,083 1,162
---------- ---------- ---------- ---------- ----------
TOTAL RETAIL BANKING $ 2,505 $ 2,571 $ 3,042 $ 3,163 $ 3,339
========== ========== ========== ========== ==========
CORE INCOME:
NORTH AMERICA:
Citibanking North America $ 142 $ 144 $ 159 $ 181 $ 187
Consumer Assets 75 86 90 92 93
Primerica Financial Services 125 128 125 134 128
Mexico (19) (22) 85 53 90
---------- ---------- ---------- ---------- ----------
TOTAL NORTH AMERICA RETAIL BANKING $ 323 $ 336 $ 459 $ 460 $ 498
---------- ---------- ---------- ---------- ----------
INTERNATIONAL:
Western Europe $ 70 $ 69 $ 78 $ 88 $ 93
Japan 31 34 38 35 33
Asia (excluding Japan) 99 104 105 112 104
Latin America 22 30 35 9 (19)
CEEMEA 8 13 16 17 12
---------- ---------- ---------- ---------- ----------
TOTAL INTERNATIONAL RETAIL BANKING 230 250 272 261 223
---------- ---------- ---------- ---------- ----------
TOTAL RETAIL BANKING $ 553 $ 586 $ 731 $ 721 $ 721
========== ========== ========== ========== ==========
BRANCHES:
NORTH AMERICA:
Citibanking North America 381 380 459 460 461
Mexico 196 196 1,560 1,485 1,489
---------- ---------- ---------- ---------- ----------
TOTAL NORTH AMERICA RETAIL BANKING 577 576 2,019 1,945 1,950
---------- ---------- ---------- ---------- ----------
INTERNATIONAL:
Western Europe 432 434 436 436 429
Japan 22 22 22 22 20
Asia (excluding Japan) 75 75 75 77 78
Latin America 197 199 196 196 195
CEEMEA 171 176 178 182 187
---------- ---------- ---------- ---------- ----------
TOTAL INTERNATIONAL RETAIL BANKING 897 906 907 913 909
---------- ---------- ---------- ---------- ----------
TOTAL RETAIL BANKING 1,474 1,482 2,926 2,858 2,859
========== ========== ========== ========== ==========
<Caption>
4Q 2002 VS.
2Q 3Q 4Q 4Q 2001 INCREASE/
2002 2002 2002 (DECREASE)
---------- ---------- ---------- -----------------
REVENUES:
NORTH AMERICA:
Citibanking North America $ 810 $ 791 $ 942 23%
Consumer Assets 311 309 373 43%
Primerica Financial Services 522 505 516 3%
Mexico 577 530 454 (18%)
---------- ---------- ----------
TOTAL NORTH AMERICA RETAIL BANKING $ 2,220 $ 2,135 $ 2,285 10%
---------- ---------- ----------
INTERNATIONAL:
Western Europe $ 457 $ 483 $ 521 28%
Japan 113 170 115 8%
Asia (excluding Japan) 327 361 347 3%
Latin America (5) 61 94 (36%)
CEEMEA 100 107 105 21%
---------- ---------- ----------
TOTAL INTERNATIONAL RETAIL BANKING 992 1,182 1,182 9%
---------- ---------- ----------
TOTAL RETAIL BANKING $ 3,212 $ 3,317 $ 3,467 10%
========== ========== ==========
CORE INCOME:
NORTH AMERICA:
Citibanking North America $ 196 $ 202 $ 209 15%
Consumer Assets 106 112 136 48%
Primerica Financial Services 137 131 138 3%
Mexico 100 130 138 NM
---------- ---------- ----------
TOTAL NORTH AMERICA RETAIL BANKING $ 539 $ 575 $ 621 35%
---------- ---------- ----------
INTERNATIONAL:
Western Europe $ 106 $ 109 $ 114 30%
Japan 37 73 41 17%
Asia (excluding Japan) 108 128 115 3%
Latin America (60) (38) (4) NM
CEEMEA 13 20 13 (24%)
---------- ---------- ----------
TOTAL INTERNATIONAL RETAIL BANKING 204 292 279 7%
---------- ---------- ----------
TOTAL RETAIL BANKING $ 743 $ 867 $ 900 25%
========== ========== ==========
BRANCHES:
NORTH AMERICA:
Citibanking North America 459 458 812 77%
Mexico 1,429 1,423 1,422 (4%)
---------- ---------- ----------
TOTAL NORTH AMERICA RETAIL BANKING 1,888 1,881 2,234 15%
---------- ---------- ----------
INTERNATIONAL:
Western Europe 430 428 429 (2%)
Japan 20 20 23 5%
Asia (excluding Japan) 78 82 83 8%
Latin America 195 169 164 (16%)
CEEMEA 185 191 192 5%
---------- ---------- ----------
TOTAL INTERNATIONAL RETAIL BANKING 908 890 891 (2%)
---------- ---------- ----------
TOTAL RETAIL BANKING 2,796 2,771 3,125 9%
========== ========== ==========
<Caption>
YTD YTD YTD 4Q 2002 VS.
4Q 4Q YTD 4Q 2001 INCREASE/
2001 2002 (DECREASE)
---------- ---------- ---------------------
REVENUES:
NORTH AMERICA:
Citibanking North America $ 2,872 $ 3,344 16%
Consumer Assets 1,022 1,292 26%
Primerica Financial Services 1,979 2,055 4%
Mexico 1,005 2,126 NM
---------- ----------
TOTAL NORTH AMERICA RETAIL BANKING $ 6,878 $ 8,817 28%
---------- ----------
INTERNATIONAL:
Western Europe $ 1,567 $ 1,876 20%
Japan 435 502 15%
Asia (excluding Japan) 1,297 1,362 5%
Latin America 763 374 (51%)
CEEMEA 341 404 18%
---------- ----------
TOTAL INTERNATIONAL RETAIL BANKING 4,403 4,518 3%
---------- ----------
TOTAL RETAIL BANKING $ 11,281 $ 13,335 18%
========== ==========
CORE INCOME:
NORTH AMERICA:
Citibanking North America $ 626 $ 794 27%
Consumer Assets 343 447 30%
Primerica Financial Services 512 534 4%
Mexico 97 458 NM
---------- ----------
TOTAL NORTH AMERICA RETAIL BANKING $ 1,578 $ 2,233 42%
---------- ----------
INTERNATIONAL:
Western Europe $ 305 $ 422 38%
Japan 138 184 33%
Asia (excluding Japan) 420 455 8%
Latin America 96 (121) NM
CEEMEA 54 58 7%
---------- ----------
TOTAL INTERNATIONAL RETAIL BANKING 1,013 998 (1%)
---------- ----------
TOTAL RETAIL BANKING $ 2,591 $ 3,231 25%
========== ==========
BRANCHES:
NORTH AMERICA:
Citibanking North America
Mexico
TOTAL NORTH AMERICA RETAIL BANKING
INTERNATIONAL:
Western Europe
Japan
Asia (excluding Japan)
Latin America
CEEMEA
TOTAL INTERNATIONAL RETAIL BANKING
TOTAL RETAIL BANKING
</Table>
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 13
<Page>
GLOBAL CORPORATE AND INVESTMENT BANK [CITIGROUP LOGO]
CAPITAL MARKETS AND BANKING
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q
2001 2001 2001 2001 2002
---------- ---------- ---------- ---------- ----------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 5,172 $ 4,153 $ 3,868 $ 4,299 $ 4,631
Adjusted Operating Expenses 2,984 2,227 2,089 2,441 2,435
Provision for Credit Losses 270 286 212 671 611
---------- ---------- ---------- ---------- ----------
Core Income Before Taxes 1,918 1,640 1,567 1,187 1,585
Income Taxes and Minority Interest, Net of Tax 717 607 561 419 556
---------- ---------- ---------- ---------- ----------
CORE INCOME $ 1,201 $ 1,033 $ 1,006 $ 768 $ 1,029
========== ========== ========== ========== ==========
INVESTMENT BANKING
UNDERWRITING (FULL CREDIT TO BOOK MANAGER):
DEBT AND EQUITY:
Global Volume(1) $ 130,988 $ 119,316 $ 95,641 $ 150,746 $ 137,113
Global Market Share 12.2% 11.0% 10.8% 14.2% 11.8%
Rank 2 2 2 1 1
U.S. Volume(2) $ 100,395 $ 95,417 $ 80,124 $ 127,988 $ 114,055
U.S. Market Share 14.2% 12.6% 11.8% 16.6% 13.7%
Rank 2 2 2 1 1
<Caption>
4Q 2002 VS.
2Q 3Q 4Q 4Q 2001 INCREASE/
2002 2002 2002 (DECREASE)
---------- ---------- ---------- -----------------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 4,509 $ 4,013 $ 3,745 (13%)
Adjusted Operating Expenses 2,400 1,874 1,654 (32%)
Provision for Credit Losses 455 710 829 24%
---------- ---------- ----------
Core Income Before Taxes 1,654 1,429 1,262 6%
Income Taxes and Minority Interest, Net of Tax 584 505 423 1%
---------- ---------- ----------
CORE INCOME $ 1,070 $ 924 $ 839 9%
========== ========== ==========
INVESTMENT BANKING
UNDERWRITING (FULL CREDIT TO BOOK MANAGER):
DEBT AND EQUITY:
Global Volume(1) $ 109,786 $ 85,603 $ 82,423 (45%)
Global Market Share 10.3% 10.3% 9.8%
Rank 1 1 1
U.S. Volume(2) $ 84,366 $ 72,578 $ 65,300 (49%)
U.S. Market Share 11.5% 11.6% 10.8%
Rank 1 1 1
<Caption>
YTD YTD YTD 4Q 2002 VS.
4Q 4Q YTD 4Q 2001 INCREASE/
2001 2002 (DECREASE)
---------- ---------- ---------------------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 17,492 $ 16,898 (3%)
Adjusted Operating Expenses 9,741 8,363 (14%)
Provision for Credit Losses 1,439 2,605 81%
---------- ----------
Core Income Before Taxes 6,312 5,930 (6%)
Income Taxes and Minority Interest, Net of Tax 2,304 2,068 (10%)
---------- ----------
CORE INCOME $ 4,008 $ 3,862 (4%)
========== ==========
INVESTMENT BANKING
UNDERWRITING (FULL CREDIT TO BOOK MANAGER):
DEBT AND EQUITY:
Global Volume (1) $ 496,691 $ 414,925 (16%)
Global Market Share 12.1% 10.6%
Rank 1 1
U.S. Volume (2) $ 403,924 $ 336,299 (17%)
U.S. Market Share 13.9% 12.1%
Rank 1 1
</Table>
(1) Includes non-convertible debt, Rule 144A non-convertible debt, Rule 144A
non-convertible preferred, non-convertible preferred, preferred, taxable
municipal debt, mortgage and asset backed debt, all common stock,
convertible debt and convertible preferred. Excludes all closed end funds.
(2) Includes all U.S. mortgage and asset backed debt, U.S. non-convertible debt,
U.S. Rule 144A non-convertible and U.S. taxable municipal debt, all U.S.
common stock, U.S. convertible debt and U.S. convertible preferred. Excludes
all closed end funds, 144A common stock, 144A convertible stock, and 144A
convertible preferred.
NM Not Meaningful
Reclassified to conform to the current period's presentation.
Page 14
<Page>
GLOBAL CORPORATE AND INVESTMENT BANK [CITIGROUP LOGO]
TRANSACTION SERVICES
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q
2001 2001 2001 2001 2002
---------- ---------- ---------- ---------- ----------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 902 $ 891 $ 856 $ 867 $ 835
Adjusted Operating Expenses 749 698 697 684 642
Provision for Credit Losses 7 3 2 9 69
---------- ---------- ---------- ---------- ----------
Core Income Before Taxes 146 190 157 174 124
Income Taxes and Minority Interest, Net of Tax 55 74 57 61 42
---------- ---------- ---------- ---------- ----------
CORE INCOME $ 91 $ 116 $ 100 $ 113 $ 82
========== ========== ========== ========== ==========
LIABILITY BALANCES (AVERAGE IN BILLIONS) $ 74 $ 75 $ 79 $ 80 $ 82
ASSETS UNDER CUSTODY (EOP IN TRILLIONS) $ 4.2 $ 4.5 $ 4.6 $ 4.8 $ 5.2
<Caption>
4Q 2002 VS.
2Q 3Q 4Q 4Q 2001 INCREASE/
2002 2002 2002 (DECREASE)
---------- ---------- ---------- -----------------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 939 $ 891 $ 872 1%
Adjusted Operating Expenses 626 625 662 (3%)
Provision for Credit Losses 3 88 49 NM
---------- ---------- ----------
Core Income Before Taxes 310 178 161 (7%)
Income Taxes and Minority Interest, Net of Tax 106 57 46 (25%)
---------- ---------- ----------
CORE INCOME $ 204 $ 121 $ 115 2%
========== ========== ==========
LIABILITY BALANCES (AVERAGE IN BILLIONS) $ 84 $ 85 $ 85 6%
ASSETS UNDER CUSTODY (EOP IN TRILLIONS) $ 5.4 $ 5.3 $ 5.1 6%
<Caption>
YTD YTD YTD 4Q 2002 VS.
4Q 4Q YTD 4Q 2001 INCREASE/
2001 2002 (DECREASE)
---------- ---------- ---------------------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 3,516 $ 3,537 1%
Adjusted Operating Expenses 2,828 2,555 (10%)
Provision for Credit Losses 21 209 NM
---------- ----------
Core Income Before Taxes 667 773 16%
Income Taxes and Minority Interest, Net of Tax 247 251 2%
---------- ----------
CORE INCOME $ 420 $ 522 24%
========== ==========
LIABILITY BALANCES (AVERAGE IN BILLIONS)
ASSETS UNDER CUSTODY (EOP IN TRILLIONS)
</Table>
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 15
<Page>
PRIVATE CLIENT SERVICES [CITIGROUP LOGO]
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
2001 2001 2001 2001 2002 2002 2002
-------- -------- -------- -------- -------- -------- --------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 1,549 $ 1,508 $ 1,450 $ 1,433 $ 1,477 $ 1,523 $ 1,399
Adjusted Operating Expenses 1,235 1,179 1,157 1,130 1,165 1,198 1,133
Provision for Credit Losses - (1) 3 2 - 2 -
-------- -------- -------- -------- -------- -------- --------
Core Income Before Taxes 314 330 290 301 312 323 266
Income Taxes 118 124 108 112 115 119 98
-------- -------- -------- -------- -------- -------- --------
CORE INCOME $ 196 $ 206 $ 182 $ 189 $ 197 $ 204 $ 168
======== ======== ======== ======== ======== ======== ========
PRIVATE CLIENT
Financial Consultants 12,675 12,802 12,963 12,927 12,767 12,808 12,744
Annualized Revenue per FC (000) $ 501 $ 473 $ 450 $ 440 $ 473 $ 473 $ 435
Branch offices 530 530 538 536 536 538 538
SMITH BARNEY
CLIENT ASSETS (IN BILLIONS OF DOLLARS)
ASSETS UNDER FEE-BASED MANAGEMENT
Consulting Group and Internally Managed Accounts $ 134.4 $ 149.3 $ 134.9 $ 150.2 $ 154.3 $ 137.4 $ 118.2
Financial Consultant Managed Accounts 51.9 57.0 49.4 54.9 55.2 49.5 44.3
-------- -------- -------- -------- -------- -------- --------
TOTAL(1) $ 186.3 $ 206.3 $ 184.3 $ 205.1 $ 209.5 $ 186.9 $ 162.5
======== ======== ======== ======== ======== ======== ========
Total Client Assets $ 911 $ 981 $ 905 $ 977 $ 994 $ 939 $ 860
U.S. Bank Deposit Program $ 17.7 $ 25.4 $ 30.9 $ 35.6 $ 37.5 $ 37.2 $ 40.0
<Caption>
4Q 2002 VS. YTD YTD YTD 4Q 2002 VS.
4Q 4Q 2001 INCREASE/ 4Q 4Q YTD 4Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
-------- ----------------- -------- -------- ---------------------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 1,318 (8%) $ 5,940 $ 5,717 (4%)
Adjusted Operating Expenses 1,059 (6%) 4,701 4,555 (3%)
Provision for Credit Losses 4 100% 4 6 50%
-------- -------- --------
Core Income Before Taxes 255 (15%) 1,235 1,156 (6%)
Income Taxes 102 (9%) 462 434 (6%)
-------- -------- --------
CORE INCOME $ 153 (19%) $ 773 $ 722 (7%)
======== ======== ========
PRIVATE CLIENT
Financial Consultants 12,690 (2%)
Annualized Revenue per FC (000) $ 411 (7%)
Branch offices 536 -
SMITH BARNEY
CLIENT ASSETS (IN BILLIONS OF DOLLARS)
ASSETS UNDER FEE-BASED MANAGEMENT
Consulting Group and Internally Managed Accounts $ 127.2 (15%)
Financial Consultant Managed Accounts 52.2 (5%)
--------
TOTAL(1) $ 179.4 (13%)
========
Total Client Assets $ 897 (8%)
U.S. Bank Deposit Program $ 41.1 15%
</Table>
(1) Includes some assets jointly managed with Citigroup Asset Management.
Reclassified to conform to the current period's presentation.
Page 16
<Page>
GLOBAL CORPORATE AND INVESTMENT BANK AND [CITIGROUP LOGO]
PRIVATE CLIENT SERVICES
INCOME STATEMENT
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
2001 2001 2001 2001 2002 2002 2002
------- ------- ------- ------- ------- ------- -------
REVENUES:
Commissions and Fees $ 1,402 $ 1,320 $ 1,218 $ 1,260 $ 1,363 $ 1,394 $ 1,358
Asset Management and Administration Fees 704 682 695 636 675 699 622
Investment Banking 1,239 1,138 929 1,210 1,043 1,117 899
Principal Transactions 2,077 1,268 812 684 1,360 1,134 1,046
Other Income 290 139 445 138 (8) 141 254
------- ------- ------- ------- ------- ------- -------
Total Non-Interest Revenues 5,712 4,547 4,099 3,928 4,433 4,485 4,179
Net Interest and Dividends 1,846 1,987 2,015 2,612 2,411 2,382 2,066
------- ------- ------- ------- ------- ------- -------
Total Revenues, Net of Interest Expense 7,558 6,534 6,114 6,540 6,844 6,867 6,245
------- ------- ------- ------- ------- ------- -------
Non-Interest Expenses:
Compensation and Benefits 3,333 2,748 2,518 2,754 3,014 2,869 2,290
Other Operating and Administrative Expenses 1,630 1,339 1,350 1,419 1,180 1,319 1,303
------- ------- ------- ------- ------- ------- -------
Total Non-Interest Expenses 4,963 4,087 3,868 4,173 4,194 4,188 3,593
------- ------- ------- ------- ------- ------- -------
Provision for Credit Losses 277 288 217 682 680 460 798
------- ------- ------- ------- ------- ------- -------
Core Income (Loss) Before Taxes and Minority Interest 2,318 2,159 2,029 1,685 1,970 2,219 1,854
Income Taxes (Benefits) and Minority Interest, Net of Tax 842 769 734 591 684 774 651
------- ------- ------- ------- ------- ------- -------
CORE INCOME (LOSS) $ 1,476 $ 1,390 $ 1,295 $ 1,094 $ 1,286 $ 1,445 $ 1,203
======= ======= ======= ======= ======= ======= =======
Pre-tax Profit Margin 30.7% 33.0% 33.2% 25.8% 28.8% 32.3% 29.7%
Non-Compensation Expenses as a Percent of
Net Revenues 21.6% 20.5% 22.1% 21.7% 17.2% 19.2% 20.9%
Compensation and Benefits Expenses as a Percent of
Net Revenues 44.1% 42.1% 41.2% 42.1% 44.0% 41.8% 36.7%
Compensation and Benefits Expenses as a Percent of
Risk Adjusted Revenues(1) 45.8% 44.0% 42.7% 47.0% 48.9% 44.8% 42.0%
<Caption>
4Q 2002 VS. YTD YTD YTD 4Q 2002 VS.
4Q 4Q 2001 INCREASE/ 4Q 4Q YTD 4Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
------- ----------------- ------- ------- ---------------------
REVENUES:
Commissions and Fees $ 1,348 7% $ 5,200 $ 5,463 5%
Asset Management and Administration Fees 553 (13%) 2,717 2,549 (6%)
Investment Banking 955 (21%) 4,516 4,014 (11%)
Principal Transactions 583 (15%) 4,841 4,123 (15%)
Other Income 304 NM 1,012 691 (32%)
------- ------- -------
Total Non-Interest Revenues 3,743 (5%) 18,286 16,840 (8%)
Net Interest and Dividends 2,236 (14%) 8,460 9,095 8%
------- ------- -------
Total Revenues, Net of Interest Expense 5,979 (9%) 26,746 25,935 (3%)
------- ------- -------
Non-Interest Expenses:
Compensation and Benefits 1,919 (30%) 11,353 10,092 (11%)
Other Operating and Administrative Expenses 3,418 NM 5,738 7,220 26%
------- ------- -------
Total Non-Interest Expenses 5,337 28% 17,091 17,312 1%
------- ------- -------
Provision for Credit Losses 882 29% 1,464 2,820 93%
------- ------- -------
Core Income (Loss) Before Taxes and Minority Interest (240) NM 8,191 5,803 (29%)
Income Taxes (Benefits) and Minority Interest, Net of Tax (49) NM 2,936 2,060 (30%)
------- ------- -------
CORE INCOME (LOSS) $ (191) NM $ 5,255 $ 3,743 (29%)
======= ======= =======
Pre-tax Profit Margin (4.0%) 30.6% 22.4%
Non-Compensation Expenses as a Percent of
Net Revenues 57.2% 21.5% 27.8%
Compensation and Benefits Expenses as a Percent of
Net Revenues 32.1% 42.4% 38.9%
Compensation and Benefits Expenses as a Percent of
Risk Adjusted Revenues(1) 37.6% 44.9% 43.7%
</Table>
(1) Risk Adjusted Revenues represent Revenues net of Interest Expense less
Provision for Credit Losses.
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 17
<Page>
GLOBAL CORPORATE AND INVESTMENT BANK AND [CITIGROUP LOGO]
PRIVATE CLIENT SERVICES
REVENUE DETAILS
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2001 2001 2001 2001 2002 2002 2002 2002
------- ------- ------- ------- ------- ------- ------- -------
INVESTMENT BANKING REVENUE:
Debt Underwriting $ 433 $ 409 $ 329 $ 355 $ 349 $ 359 $ 270 $ 296
Equity Underwriting 224 247 193 232 342 308 195 177
Advisory and Other Fees 582 482 407 623 352 450 434 482
------- ------- ------- ------- ------- ------- ------- -------
Total Investment Banking Revenues $ 1,239 $ 1,138 $ 929 $ 1,210 $ 1,043 $ 1,117 $ 899 $ 955
======= ======= ======= ======= ======= ======= ======= =======
TRADING RELATED REVENUE BY PRODUCT
Fixed Income $ 1,299 $ 969 $ 800 $ 1,016 $ 1,398 $ 1,157 $ 1,089 $ 921
Equities 472 214 101 95 147 180 (6) (19)
Foreign Exchange 365 399 295 458 467 536 398 382
All Other 64 47 38 48 77 53 75 29
------- ------- ------- ------- ------- ------- ------- -------
Total Trading Related Revenue $ 2,200 $ 1,629 $ 1,234 $ 1,617 $ 2,089 $ 1,926 $ 1,556 $ 1,313
======= ======= ======= ======= ======= ======= ======= =======
TRADING RELATED REVENUE BY INCOME STATEMENT LINE
Principal Transactions $ 2,077 $ 1,268 $ 812 $ 684 $ 1,360 $ 1,134 $ 1,046 $ 583
Net Interest Revenue 123 361 422 933 729 792 510 730
------- ------- ------- ------- ------- ------- ------- -------
Total Trading Related Revenue $ 2,200 $ 1,629 $ 1,234 $ 1,617 $ 2,089 $ 1,926 $ 1,556 $ 1,313
======= ======= ======= ======= ======= ======= ======= =======
<Caption>
4Q 2002 VS. YTD YTD YTD 4Q 2002 VS.
4Q 2001 INCREASE/ 4Q 4Q YTD 4Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
----------------- ------- ------- ---------------------
INVESTMENT BANKING REVENUE:
Debt Underwriting (17%) $ 1,526 $ 1,274 (17%)
Equity Underwriting (24%) 896 1,022 14%
Advisory and Other Fees (23%) 2,094 1,718 (18%)
------- -------
Total Investment Banking Revenues (21%) $ 4,516 $ 4,014 (11%)
======= =======
TRADING RELATED REVENUE BY PRODUCT
Fixed Income (9%) $ 4,084 $ 4,565 12%
Equities NM 882 302 (66%)
Foreign Exchange (17%) 1,517 1,783 18%
All Other (40%) 197 234 19%
------- -------
Total Trading Related Revenue (19%) $ 6,680 $ 6,884 3%
======= =======
TRADING RELATED REVENUE BY INCOME STATEMENT LINE
Principal Transactions (15%) $ 4,841 $ 4,123 (15%)
Net Interest Revenue (22%) 1,839 2,761 50%
------- -------
Total Trading Related Revenue (19%) $ 6,680 $ 6,884 3%
======= =======
</Table>
Reclassified to conform to the current period's presentation.
Page 18
<Page>
GLOBAL INVESTMENT MANAGEMENT [CITIGROUP LOGO]
LIFE INSURANCE AND ANNUITIES
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
-------- -------- -------- -------- -------- --------
TOTAL REVENUES, NET OF INTEREST EXPENSE* $ 1,170 $ 1,014 $ 972 $ 1,223 $ 1,002 $ 1,216
Total Operating Expenses 97 94 91 112 92 112
Provision for Benefits and Claims 752 571 609 813 616 735
-------- -------- -------- -------- -------- --------
Core Income Before Taxes and Minority Interest 321 349 272 298 294 369
Income Taxes 106 113 84 91 90 114
Minority Interest, net of tax - - 3 7 - -
-------- -------- -------- -------- -------- --------
CORE INCOME $ 215 $ 236 $ 185 $ 200 $ 204 $ 255
======== ======== ======== ======== ======== ========
Travelers Life & Annuity - Core Income $ 209 $ 230 $ 178 $ 201 $ 200 $ 206
International Insurance Manufacturing - Core Income $ 6 $ 6 $ 7 $ (1) $ 4 $ 49
PRE-TAX CONTRIBUTION BY SOURCE:
Individual annuities $ 119 $ 121 $ 94 $ 99 $ 123 $ 112
Group annuities 111 128 95 105 98 96
Life and long-term care insurance 61 73 51 75 51 74
Other (includes run-off and return on excess capital) 21 19 17 16 17 17
-------- -------- -------- -------- -------- --------
Total Travelers Life & Annuity 312 341 257 295 289 299
Total International Insurance Manufacturing 9 8 15 3 5 70
-------- -------- -------- -------- -------- --------
Total Life Insurance and Annuities $ 321 $ 349 $ 272 $ 298 $ 294 $ 369
======== ======== ======== ======== ======== ========
TRAVELERS LIFE AND ANNUITY:
INDIVIDUAL ANNUITIES:
Net written premiums and deposits:
Fixed $ 427 $ 572 $ 464 $ 657 $ 614 $ 603
Variable 1,099 1,068 952 881 898 916
Individual Payout 19 15 14 11 14 12
-------- -------- -------- -------- -------- --------
Total $ 1,545 $ 1,655 $ 1,430 $ 1,549 $ 1,526 $ 1,531
======== ======== ======== ======== ======== ========
Policyholder account balances and benefit reserves:(1)
Fixed $ 8,272 $ 8,609 $ 8,908 $ 9,289 $ 9,681 $ 10,139
Variable 18,948 20,438 17,952 20,117 20,381 18,423
Individual Payout 632 632 630 626 622 618
-------- -------- -------- -------- -------- --------
Total $ 27,852 $ 29,679 $ 27,490 $ 30,032 $ 30,684 $ 29,180
======== ======== ======== ======== ======== ========
GROUP ANNUITIES:
Net written premiums and deposits(2) $ 2,502 $ 1,397 $ 1,717 $ 1,452 $ 1,525 $ 2,350
Policyholder account balances and benefit reserves:(1)
GIC's and other investment contracts $ 13,732 $ 14,091 $ 14,795 $ 15,345 $ 15,563 $ 16,560
Payout group annuities 5,141 5,259 5,360 5,647 5,740 5,963
-------- -------- -------- -------- -------- --------
Total $ 18,873 $ 19,350 $ 20,155 $ 20,992 $ 21,303 $ 22,523
======== ======== ======== ======== ======== ========
INDIVIDUAL LIFE INSURANCE:
Net written premiums and deposits:
Direct periodic premiums and deposits $ 187 $ 142 $ 126 $ 197 $ 233 $ 177
Single premium deposits 47 48 36 77 76 72
Reinsurance (22) (24) (25) (25) (26) (28)
-------- -------- -------- -------- -------- --------
Total $ 212 $ 166 $ 137 $ 249 $ 283 $ 221
======== ======== ======== ======== ======== ========
Policyholder account balances and benefit reserves $ 3,085 $ 3,193 $ 3,175 $ 3,401 $ 3,592 $ 3,643
Life insurance in force (in billions, face amt.) $ 69.4 $ 71.0 $ 72.5 $ 75.0 $ 77.8 $ 79.6
Life insurance issued (in billions, face amt.) $ 3.8 $ 2.9 $ 2.9 $ 4.2 $ 4.5 $ 4.0
<Caption>
4Q 2002 VS. YTD YTD
3Q 4Q 4Q 2001 INCREASE/ 4Q 4Q
2002 2002 (DECREASE) 2001 2002
-------- -------- ----------------- -------- --------
TOTAL REVENUES, NET OF INTEREST EXPENSE* $ 1,073 $ 1,121 (8%) $ 4,379 $ 4,412
Total Operating Expenses 124 173 54% 394 501
Provision for Benefits and Claims 698 677 (17%) 2,745 2,726
-------- -------- -------- --------
Core Income Before Taxes and Minority Interest 251 271 (9%) 1,240 1,185
Income Taxes 68 77 (15%) 394 349
Minority Interest, net of tax - - (100%) 10 -
-------- -------- -------- --------
CORE INCOME $ 183 $ 194 (3%) $ 836 $ 836
======== ======== ======== ========
Travelers Life & Annuity - Core Income $ 170 $ 200 - $ 818 $ 776
International Insurance Manufacturing - Core Income $ 13 $ (6) NM $ 18 $ 60
PRE-TAX CONTRIBUTION BY SOURCE:
Individual annuities $ 89 $ 94 (5%) $ 433 $ 418
Group annuities 62 109 4% 439 365
Life and long-term care insurance 72 62 (17%) 260 259
Other (includes run-off and return on excess capital) 12 20 25% 73 66
-------- -------- -------- --------
Total Travelers Life & Annuity 235 285 (3%) 1,205 1,108
Total International Insurance Manufacturing 16 (14) NM 35 77
-------- -------- -------- --------
Total Life Insurance and Annuities $ 251 $ 271 (9%) $ 1,240 $ 1,185
======== ======== ======== ========
TRAVELERS LIFE AND ANNUITY:
INDIVIDUAL ANNUITIES:
Net written premiums and deposits:
Fixed $ 592 $ 431 (34%) $ 2,120 $ 2,240
Variable 695 626 (29%) 4,000 3,135
Individual Payout 15 17 55% 59 58
-------- -------- -------- --------
Total $ 1,302 $ 1,074 (31%) $ 6,179 $ 5,433
======== ======== ======== ========
Policyholder account balances and benefit reserves:(1)
Fixed $ 10,748 $ 11,076 19%
Variable 15,945 16,730 (17%)
Individual Payout 615 615 (2%)
-------- --------
Total $ 27,308 $ 28,421 (5%)
======== ========
GROUP ANNUITIES:
Net written premiums and deposits(2) $ 1,397 $ 1,020 (30%) $ 7,068 $ 6,292
Policyholder account balances and benefit reserves:(1)
GIC's and other investment contracts $ 16,551 $ 16,098 5%
Payout group annuities 6,124 6,229 10%
-------- --------
Total $ 22,675 $ 22,327 6%
======== ========
INDIVIDUAL LIFE INSURANCE:
Net written premiums and deposits:
Direct periodic premiums and deposits $ 143 $ 218 11% $ 652 $ 771
Single premium deposits 64 73 (5%) 208 285
Reinsurance (29) (30) (20%) (96) (113)
-------- -------- -------- --------
Total $ 178 $ 261 5% $ 764 $ 943
======== ======== ======== ========
Policyholder account balances and benefit reserves $ 3,635 $ 3,852 13%
Life insurance in force (in billions, face amt.) $ 80.7 $ 82.0 9%
Life insurance issued (in billions, face amt.) $ 3.2 $ 3.3 (21%) $ 13.8 $ 15.0
<Caption>
YTD 4Q 2002 VS.
YTD 4Q 2001 INCREASE/
(DECREASE)
---------------------
TOTAL REVENUES, NET OF INTEREST EXPENSE* 1%
Total Operating Expenses 27%
Provision for Benefits and Claims (1%)
Core Income Before Taxes and Minority Interest (4%)
Income Taxes (11%)
Minority Interest, net of tax (100%)
CORE INCOME -
Travelers Life & Annuity - Core Income (5%)
International Insurance Manufacturing - Core Income NM
PRE-TAX CONTRIBUTION BY SOURCE:
Individual annuities (3%)
Group annuities (17%)
Life and long-term care insurance -
Other (includes run-off and return on excess capital) (10%)
Total Travelers Life & Annuity (8%)
Total International Insurance Manufacturing NM
Total Life Insurance and Annuities (4%)
TRAVELERS LIFE AND ANNUITY:
INDIVIDUAL ANNUITIES:
Net written premiums and deposits:
Fixed 6%
Variable (22%)
Individual Payout (2%)
Total (12%)
Policyholder account balances and benefit reserves:(1)
Fixed
Variable
Individual Payout
Total
GROUP ANNUITIES:
Net written premiums and deposits(2) (11%)
Policyholder account balances and benefit reserves:(1)
GIC's and other investment contracts
Payout group annuities
Total
INDIVIDUAL LIFE INSURANCE:
Net written premiums and deposits:
Direct periodic premiums and deposits 18%
Single premium deposits 37%
Reinsurance (18%)
Total 23%
Policyholder account balances and benefit reserves
Life insurance in force (in billions, face amt.)
Life insurance issued (in billions, face amt.) 9%
</Table>
(1) Includes general account, separate accounts and managed funds.
(2) Excludes deposits of $167.0, $29.0, $30.0 and $24.0 for the first, second,
third and fourth quarters of 2002, respectively and $28.0, $12.0, $594.0
and $275.0 in the first, second, third and fourth quarters of 2001,
respectively, related to Citigroup plans previously managed externally.
* Excludes Realized Gain / (Losses) on Investments.
NM Not meaningful
Page 19
<Page>
GLOBAL INVESTMENT MANAGEMENT [CITIGROUP LOGO]
PRIVATE BANK
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
2001 2001 2001 2001 2002 2002 2002
------- ------- ------- ------- ------- ------- -------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 392 $ 376 $ 366 $ 408 $ 423 $ 427 $ 412
Adjusted Operating Expenses 239 230 225 245 254 261 237
Provision for Credit Losses 2 1 4 16 6 - 5
------- ------- ------- ------- ------- ------- -------
Core Income Before Taxes 151 145 137 147 163 166 170
Income Taxes 56 53 46 53 51 53 55
------- ------- ------- ------- ------- ------- -------
CORE INCOME $ 95 $ 92 $ 91 $ 94 $ 112 $ 113 $ 115
======= ======= ======= ======= ======= ======= =======
Average Assets (in billions of dollars) $ 25 $ 26 $ 26 $ 26 $ 28 $ 29 $ 29
======= ======= ======= ======= ======= ======= =======
Return on Assets 1.54% 1.42% 1.39% 1.43% 1.62% 1.56% 1.57%
======= ======= ======= ======= ======= ======= =======
Client Business Volumes (in billions of dollars) $ 146 $ 151 $ 150 $ 159 $ 166 $ 163 $ 157
======= ======= ======= ======= ======= ======= =======
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS):
Proprietary Managed Assets $ 29 $ 28 $ 29 $ 31 $ 31 $ 29 $ 28
Other Assets under Fee-Based Management 5 7 6 8 9 9 8
Banking and Fiduciary Deposits 31 31 33 34 35 36 36
Loans 26 26 27 27 29 30 31
Other, Principally Custody Accounts 55 59 55 59 62 59 54
------- ------- ------- ------- ------- ------- -------
Total Client Business Volumes $ 146 $ 151 $ 150 $ 159 $ 166 $ 163 $ 157
======= ======= ======= ======= ======= ======= =======
REVENUES:
Customer Revenues
Net Interest Spread and Recurring
Fee-Based Revenues $ 250 $ 247 $ 253 $ 256 $ 271 $ 269 $ 268
Transaction Revenues 99 81 62 94 92 96 73
------- ------- ------- ------- ------- ------- -------
Total Customer Revenues 349 328 315 350 363 365 341
Other Revenues (Principally Allocated Equity
and Treasury Revenues) 43 48 51 58 60 62 71
------- ------- ------- ------- ------- ------- -------
TOTAL REVENUES $ 392 $ 376 $ 366 $ 408 $ 423 $ 427 $ 412
======= ======= ======= ======= ======= ======= =======
North America $ 153 $ 154 $ 152 $ 164 $ 187 $ 184 $ 187
International 239 222 214 244 236 243 225
------- ------- ------- ------- ------- ------- -------
$ 392 $ 376 $ 366 $ 408 $ 423 $ 427 $ 412
======= ======= ======= ======= ======= ======= =======
Net Credit Loss Ratio (0.01%) 0.04% 0.03% 0.15% 0.04% 0.00% 0.08%
<Caption>
4Q 2002 VS. YTD YTD YTD 4Q 2002 VS.
4Q 4Q 2001 INCREASE/ 4Q 4Q YTD 4Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
------- ----------------- ------- ------- ---------------------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 433 6% $ 1,542 $ 1,695 10%
Adjusted Operating Expenses 254 4% 939 1,006 7%
Provision for Credit Losses 7 (56%) 23 18 (22%)
------- ------- -------
Core Income Before Taxes 172 17% 580 671 16%
Income Taxes 55 4% 208 214 3%
------- ------- -------
CORE INCOME $ 117 24% $ 372 $ 457 23%
======= ======= =======
Average Assets (in billions of dollars) $ 30 15% $ 26 $ 29 12%
======= ======= =======
Return on Assets 1.55% 1.43% 1.58%
======= ======= =======
Client Business Volumes (in billions of dollars) $ 164 3% $ 159 $ 164 3%
======= ======= =======
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS):
Proprietary Managed Assets $ 29 (6%)
Other Assets under Fee-Based Management 8 -
Banking and Fiduciary Deposits 38 12%
Loans 33 22%
Other, Principally Custody Accounts 56 (5%)
-------
Total Client Business Volumes $ 164 3%
=======
REVENUES:
Customer Revenues
Net Interest Spread and Recurring
Fee-Based Revenues $ 279 9% $ 1,006 $ 1,087 8%
Transaction Revenues 88 (6%) 336 349 4%
------- ------- -------
Total Customer Revenues 367 5% 1,342 1,436 7%
Other Revenues (Principally Allocated Equity
and Treasury Revenues) 66 14% 200 259 30%
------- ------- -------
TOTAL REVENUES $ 433 6% $ 1,542 $ 1,695 10%
======= ======= =======
North America $ 197 20% $ 623 $ 755 21%
International 236 (3%) 919 940 2%
------- ------- -------
$ 433 6% $ 1,542 $ 1,695 10%
======= ======= =======
Net Credit Loss Ratio 0.10%
</Table>
Reclassified to conform to the current period's presentation.
Page 20
<Page>
GLOBAL INVESTMENT MANAGEMENT [CITIGROUP LOGO]
ASSET MANAGEMENT(1)
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q
2001 2001 2001 2001 2002
------- ------- ------- ------- -------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 516 $ 491 $ 546 $ 532 $ 519
Adjusted Operating Expenses 361 347 373 329 325
------- ------- ------- ------- -------
Core income before taxes and minority interest 155 144 173 203 194
Income Taxes 63 60 63 67 68
Minority Interest, net of tax 1 - 6 11 -
------- ------- ------- ------- -------
CORE INCOME $ 91 $ 84 $ 104 $ 125 $ 126
======= ======= ======= ======= =======
Pre-tax profit margin 30.0% 29.3% 31.7% 38.2% 37.4%
ASSET MANAGEMENT (EXCL. RETIREMENT SERVICES):
Total Revenues, Net of Interest Expense $ 445 $ 420 $ 424 $ 417 $ 435
Adjusted Operating Expenses 309 295 291 267 274
------- ------- ------- ------- -------
Core income before taxes and minority interest 136 125 133 150 161
Income taxes 54 51 53 58 63
------- ------- ------- ------- -------
CORE INCOME $ 82 $ 74 $ 80 $ 92 $ 98
======= ======= ======= ======= =======
RETIREMENT SERVICES:
Total Revenues, Net of Interest Expense $ 71 $ 71 $ 122 $ 115 $ 84
Adjusted Operating Expenses 52 52 82 62 51
------- ------- ------- ------- -------
Core income before taxes and minority interest 19 19 40 53 33
Income taxes 9 9 10 9 5
Minority Interest, net of tax 1 - 6 11 -
------- ------- ------- ------- -------
CORE INCOME $ 9 $ 10 $ 24 $ 33 $ 28
======= ======= ======= ======= =======
NET FLOWS BY BUSINESS (IN BILLIONS OF DOLLARS):
Retail/Private Bank $ 8.7 $ 7.6 $ 7.3 $ 7.2 $ 6.0
Institutional
Long Term 1.6 2.6 1.7 2.9 4.1
Liquidity 5.0 9.9 8.4 2.5 9.8
------- ------- ------- ------- -------
Total Institutional 6.6 12.5 10.1 5.4 13.9
------- ------- ------- ------- -------
Net Flows Excluding US Retail Money Markets $ 15.3 $ 20.1 $ 17.4 $ 12.6 $ 19.9
------- ------- ------- ------- -------
US Retail Money Markets $ (6.5) $ (12.6) $ (2.5) $ (4.6) $ (1.6)
ASSETS UNDER MANAGEMENT BY BUSINESS (IN BILLIONS OF DOLLARS):
Retail/Private Bank(2) $ 233.6 $ 231.6 $ 223.4 $ 237.2 $ 238.9
Institutional 116.5 131.0 138.7 142.5 156.6
Citigroup Alternative Investments(4) 46.2 48.3 48.3 48.1 48.9
Retirement Services 6.7 7.3 11.3 12.1 9.9
------- ------- ------- ------- -------
Total assets under management(2, 4) $ 403.0 $ 418.2 $ 421.7 $ 439.9 $ 454.3
======= ======= ======= ======= =======
ASSETS UNDER MANAGEMENT BY PRODUCT (IN BILLIONS OF DOLLARS):
Equity/Balanced $ 158.4 $ 169.5 $ 151.4 $ 167.2 $ 165.5
Fixed Income 80.7 83.6 98.6 99.8 106.3
Money Markets/Liquidity 126.7 125.0 131.5 132.2 140.6
Alternative Investments 37.2 40.1 40.2 40.7 41.9
------- ------- ------- ------- -------
Total assets under management(2, 4) $ 403.0 $ 418.2 $ 421.7 $ 439.9 $ 454.3
======= ======= ======= ======= =======
NUMBER OF MORNINGSTAR 4- AND 5-STAR MUTUAL FUND SHARE CLASSES(3)
Equity 12 11 11 10 11
Fixed Income 11 5 8 7 10
CITISTREET JOINT VENTURE - ASSETS UNDER ADMINISTRATION $ 183.5 $ 181.6 $ 178.8 $ 179.3 $ 181.0
(IN BLLIONS OF DOLLARS)
<Caption>
4Q 2002 VS.
2Q 3Q 4Q 4Q 2001 INCREASE/
2002 2002 2002 (DECREASE)
------- ------- ------- -----------------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 522 $ 518 $ 509 (4%)
Adjusted Operating Expenses 317 311 325 (1%)
------- ------- -------
Core income before taxes and minority interest 205 207 184 (9%)
Income Taxes 67 70 56 (16%)
Minority Interest, net of tax 1 - - (100%)
------- ------- -------
CORE INCOME $ 137 $ 137 $ 128 2%
======= ======= =======
Pre-tax profit margin 39.3% 40.0% 36.1%
ASSET MANAGEMENT (EXCL. RETIREMENT SERVICES):
Total Revenues, Net of Interest Expense $ 441 $ 428 $ 425 2%
Adjusted Operating Expenses 280 274 277 4%
------- ------- -------
Core income before taxes and minority interest 161 154 148 (1%)
Income taxes 60 59 56 (3%)
------- ------- -------
CORE INCOME $ 101 $ 95 $ 92 -
======= ======= =======
RETIREMENT SERVICES:
Total Revenues, Net of Interest Expense $ 81 $ 90 $ 84 (27%)
Adjusted Operating Expenses 37 37 48 (23%)
------- ------- -------
Core income before taxes and minority interest 44 53 36 (32%)
Income taxes 7 11 - (100%)
Minority Interest, net of tax 1 - - (100%)
------- ------- -------
CORE INCOME $ 36 $ 42 $ 36 9%
======= ======= =======
NET FLOWS BY BUSINESS (IN BILLIONS OF DOLLARS):
Retail/Private Bank $ 3.2 $ 0.7 $ 0.9 (88%)
Institutional
Long Term 3.6 1.6 1.3 (55%)
Liquidity 1.7 (8.1) 10.1 NM
------- ------- -------
Total Institutional 5.3 (6.5) 11.4 NM
------- ------- -------
Net Flows Excluding US Retail Money Markets $ 8.5 $ (5.8) $ 12.3 (2%)
------- ------- -------
US Retail Money Markets $ (4.5) $ (3.0) $ (3.5) 24%
ASSETS UNDER MANAGEMENT BY BUSINESS (IN BILLIONS OF DOLLARS):
Retail/Private Bank (2) $ 220.6 $ 201.5 $ 205.1 (14%)
Institutional 161.7 150.2 163.9 15%
Citigroup Alternative Investments (4) 50.1 89.5 99.2 NM
Retirement Services 10.1 10.6 11.1 (8%)
------- ------- -------
Total assets under management (2, 4) $ 442.5 $ 451.8 $ 479.3 9%
======= ======= =======
ASSETS UNDER MANAGEMENT BY PRODUCT (IN BILLIONS OF DOLLARS):
Equity/Balanced $ 151.3 $ 129.4 $ 132.9 (21%)
Fixed Income 111.7 145.1 152.9 53%
Money Markets/Liquidity 135.2 124.3 132.3 0%
Alternative Investments 44.3 53.0 61.2 50%
------- ------- -------
Total assets under management (2, 4) $ 442.5 $ 451.8 $ 479.3 9%
======= ======= =======
NUMBER OF MORNINGSTAR 4- AND 5-STAR MUTUAL FUND SHARE CLASSES (3)
Equity 12 13 14 40%
Fixed Income 13 13 12 71%
CITISTREET JOINT VENTURE - ASSETS UNDER ADMINISTRATION $ 175.8 $ 158.8 $ 162.7 (9%)
(IN BLLIONS OF DOLLARS)
<Caption>
YTD YTD YTD 4Q 2002 VS.
4Q 4Q YTD 4Q 2001 INCREASE/
2001 2002 (DECREASE)
------- ------- ---------------------
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 2,085 $ 2,068 (1%)
Adjusted Operating Expenses 1,410 1,278 (9%)
------- -------
Core income before taxes and minority interest 675 790 17%
Income Taxes 253 261 3%
Minority Interest, net of tax 18 1 (94%)
------- -------
CORE INCOME $ 404 $ 528 31%
======= =======
Pre-tax profit margin
ASSET MANAGEMENT (EXCL. RETIREMENT SERVICES):
Total Revenues, Net of Interest Expense $ 1,706 $ 1,729 1%
Adjusted Operating Expenses 1,162 1,105 (5%)
------- -------
Core income before taxes and minority interest 544 624 15%
Income taxes 216 238 10%
------- -------
CORE INCOME $ 328 $ 386 18%
======= =======
RETIREMENT SERVICES:
Total Revenues, Net of Interest Expense $ 379 $ 339 (11%)
Adjusted Operating Expenses 248 173 (30%)
------- -------
Core income before taxes and minority interest 131 166 27%
Income taxes 37 23 (38%)
------- -------
Minority Interest, net of tax 18 1 (94%)
CORE INCOME $ 76 $ 142 87%
======= =======
NET FLOWS BY BUSINESS (IN BILLIONS OF DOLLARS):
Retail/Private Bank $ 30.8 $ 10.8 (65%)
Institutional
Long Term 8.8 10.6 20%
Liquidity 25.8 13.5 (48%)
------- -------
Total Institutional 34.6 24.1 (30%)
------- -------
Net Flows Excluding US Retail Money Markets $ 65.4 $ 34.9 (47%)
------- -------
US Retail Money Markets $ (26.2) $ (12.6) 52%
ASSETS UNDER MANAGEMENT BY BUSINESS (IN BILLIONS OF DOLLARS):
Retail/Private Bank(2)
Institutional
Citigroup Alternative Investments(4)
Retirement Services
Total assets under management(2),(4)
ASSETS UNDER MANAGEMENT BY PRODUCT (IN BILLIONS OF DOLLARS):
Equity/Balanced
Fixed Income
Money Markets/Liquidity
Alternative Investments
Total assets under management(2),(4)
NUMBER OF MORNINGSTAR 4- AND 5-STAR MUTUAL FUND SHARE CLASSES(3)
Equity
Fixed Income
CITISTREET JOINT VENTURE - ASSETS UNDER ADMINISTRATION
(IN BLLIONS OF DOLLARS)
</Table>
(1) Includes Retirement Services Businesses.
(2) Includes $29, $28, $29 and $31 billion for the first, second, third and
fourth quarters of 2001, respectively, and $31, $29, $28 and $29 billion
for the first, second, third and fourth quarters of 2002, respectively, for
Citigroup Private Bank clients.
(3) Asset calculations are based on classes of such funds ranked by
Morningstar. Number of funds reflects only one class per fund and are based
on performance of non-money market retail funds.
(4) Includes $34 and $35 billion of Travelers Property Casualty Corp. assets
for the third and fourth quarters of 2002, respectively, which Asset
Management manages on a third-party basis following the spin-off. Beginning
in the 2002 fourth quarter, Citigroup Alternative Investments include
levered real estate assets, which increased fourth quarter AUM's by $7
billion.
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 21
<Page>
PROPRIETARY INVESTMENT ACTIVITIES(1) [CITIGROUP LOGO]
(In millions of dollars)
<Table>
<Caption>
4Q 2002 VS.
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q 2001 INCREASE/
2001 2001 2001 2001 2002 2002 2002 2002 (DECREASE)
------- ------ ------- ------ ------ ------- ------- ------- -----------------
ADJUSTED REVENUES(2) $ (74) $ 310 $ (360) $ 565 $ 92 $ (69) $ (101) $ (63) NM
TOTAL OPERATING EXPENSE 32 18 26 42 33 29 47 31 (26%)
CORE INCOME (LOSS)(2) $ (68) $ 206 $ (249) $ 335 $ 35 $ (70) $ (123) $ (75) NM
TOTAL PERIOD END ASSETS (IN BILLIONS) $ 10.4 $ 10.0 $ 9.0 $ 9.3 $ 9.3 $ 8.3 $ 8.8 $ 9.2 (1%)
<Caption>
YTD YTD YTD 4Q 2002 VS.
4Q 4Q YTD 4Q 2001 INCREASE/
2001 2002 (DECREASE)
------ ------- ---------------------
ADJUSTED REVENUES(2) $ 441 $ (141) NM
TOTAL OPERATING EXPENSE 118 140 19%
CORE INCOME (LOSS)(2) $ 224 $ (233) NM
TOTAL PERIOD END ASSETS (IN BILLIONS)
</Table>
(1) Includes Venture Capital Activities and certain other corporate
investments.
(2) The 2002 third quarter includes $527 million ($323 million after-tax)
related to the gain on sale of 399 Park Avenue.
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 22
<Page>
INSURANCE INVESTMENT PORTFOLIO(1) [CITIGROUP LOGO]
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
-------- -------- -------- -------- -------- --------
Fixed-income investments:
Available for sale, at market:
Mortgage-backed securities - principally
obligations of U.S. Government agencies $ 8,304 $ 8,584 $ 8,943 $ 8,114 $ 8,160 $ 8,516
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies 1,676 1,389 1,559 1,901 2,093 2,068
Corporates (including redeemable preferreds) 22,651 23,440 24,193 23,864 24,730 25,840
Obligations of states and political subdivisions 624 674 645 161 148 241
Debt securities issued by foreign governments 780 929 830 856 749 643
Held to maturity, at amortized cost 29 28 28 15 13 12
-------- -------- -------- -------- -------- --------
Total fixed income 34,064 35,044 36,198 34,911 35,893 37,320
Equity securities, at market 1,304 1,289 1,201 551 548 539
Short-term and other 3,930 3,240 4,713 5,136 4,140 4,230
-------- -------- -------- -------- -------- --------
TOTAL INVESTMENTS HELD BY INSURANCE COMPANIES $ 39,298 $ 39,573 $ 42,112 $ 40,598 $ 40,581 $ 42,089
======== ======== ======== ======== ======== ========
After-tax unrealized gains/(losses) on invested assets $ 321 $ 135 $ 389 $ 217 $ (112) $ 160
======== ======== ======== ======== ======== ========
<Caption>
4Q 2002 VS.
3Q 4Q 4Q 2001 INCREASE/
2002 2002 (DECREASE)
-------- -------- -----------------
Fixed-income investments:
Available for sale, at market:
Mortgage-backed securities - principally
obligations of U.S. Government agencies $ 9,113 $ 8,979 11%
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies 2,254 2,819 48%
Corporates (including redeemable preferreds) 26,810 27,106 14%
Obligations of states and political subdivisions 318 370 NM
Debt securities issued by foreign governments 537 398 (54%)
Held to maturity, at amortized cost 12 11 (27%)
-------- --------
Total fixed income 39,044 39,683 14%
Equity securities, at market 470 356 (35%)
Short-term and other 3,836 6,364 24%
-------- --------
TOTAL INVESTMENTS HELD BY INSURANCE COMPANIES $ 43,350 $ 46,403 14%
======== ========
After-tax unrealized gains / (losses) on invested assets $ 600 $ 753 NM
======== ========
</Table>
(1) Includes investments held by insurance companies. Excludes Travelers
Property Casualty Corp.
NM Not Meaningful
Reclassified to conform to the current period's presentation.
Page 23
<Page>
CITIGROUP CONSOLIDATED STATEMENT OF INCOME [CITIGROUP LOGO]
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q
2001 2001 2001 2001
------------ ------------ ------------ ------------
REVENUES
Loan interest, including fees $ 9,997 $ 9,746 $ 10,282 $ 9,563
Other interest and dividends 6,646 6,491 6,316 5,443
Insurance premiums 942 723 789 996
Commissions and fees 4,054 3,668 3,746 4,125
Principal transactions 2,325 1,417 1,019 783
Asset management and administration fees 1,389 1,331 1,371 1,298
Realized gains (losses) from sales of investments 239 15 108 (125)
Other income 956 1,265 851 1,391
------------ ------------ ------------ ------------
Total revenues 26,548 24,656 24,482 23,474
Interest expense 9,478 8,424 8,284 5,607
------------ ------------ ------------ ------------
Total revenues, net of interest expense 17,070 16,232 16,198 17,867
------------ ------------ ------------ ------------
BENEFITS, CLAIMS, AND CREDIT LOSSES
Policyholder benefits and claims 943 763 820 994
Provision for credit losses 1,474 1,485 1,580 2,261
------------ ------------ ------------ ------------
Total benefits, claims, and credit losses 2,417 2,248 2,400 3,255
------------ ------------ ------------ ------------
OPERATING EXPENSES
Non-insurance compensation and benefits 5,329 4,762 4,525 4,833
Insurance underwriting, acquisition and operating 322 312 243 238
Restructuring-related items(1) 132 210 133 (21)
Other operating(2) 3,951 3,537 3,865 4,157
------------ ------------ ------------ ------------
Total operating expenses 9,734 8,821 8,766 9,207
------------ ------------ ------------ ------------
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME
TAXES, MINORITY INTEREST AND CUMULATIVE EFFECT
OF ACCOUNTING CHANGES 4,919 5,163 5,032 5,405
Provision for income taxes 1,798 1,837 1,771 1,797
Minority interest, net of income taxes 9 15 26 37
------------ ------------ ------------ ------------
INCOME FROM CONTINUING OPERATIONS BEFORE CUMULATIVE
EFFECT OF ACCOUNTING CHANGES 3,112 3,311 3,235 3,571
DISCONTINUED OPERATIONS(3)
Income (Loss) from Discontinued Operations 660 464 (151) 405
Gain on Sale of Stock by Subsidiary - - - -
Provision (benefit) for income taxes 192 123 (93) 101
------------ ------------ ------------ ------------
INCOME (LOSS) FROM DISCONTINUED OPERATIONS 468 341 (58) 304
Cumulative Effect of Accounting Changes(4) (42) (116) - -
------------ ------------ ------------ ------------
NET INCOME $ 3,538 $ 3,536 $ 3,177 $ 3,875
============ ============ ============ ============
<Caption>
1Q 2Q 3Q 4Q
2002 2002 2002 2002
------------ ------------ ------------ ------------
REVENUES
Loan interest, including fees $ 9,159 $ 9,517 $ 9,686 $ 9,541
Other interest and dividends 4,944 5,483 5,398 5,211
Insurance premiums 780 931 855 844
Commissions and fees 3,928 4,105 3,612 3,613
Principal transactions 1,666 1,099 970 434
Asset management and administration fees 1,320 1,377 1,263 1,186
Realized gains (losses) from sales of investments 30 (190) (165) (160)
Other income 827 1,279 1,886 2,127
------------ ------------ ------------ ------------
Total revenues 22,654 23,601 23,505 22,796
Interest expense 4,856 5,608 5,861 4,923
------------ ------------ ------------ ------------
Total revenues, net of interest expense 17,798 17,993 17,644 17,873
------------ ------------ ------------ ------------
BENEFITS, CLAIMS, AND CREDIT LOSSES
Policyholder benefits and claims 803 925 887 863
Provision for credit losses 2,559 2,057 2,689 2,690
------------ ------------ ------------ ------------
Total benefits, claims, and credit losses 3,362 2,982 3,576 3,553
------------ ------------ ------------ ------------
OPERATING EXPENSES
Non-insurance compensation and benefits 5,090 4,979 4,387 4,194
Insurance underwriting, acquisition and operating 269 233 230 260
Restructuring-related items(1) 46 (40) (41) 20
Other operating(2) 3,651 3,975 3,864 6,181
------------ ------------ ------------ ------------
Total operating expenses 9,056 9,147 8,440 10,655
------------ ------------ ------------ ------------
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME
TAXES, MINORITY INTEREST AND CUMULATIVE EFFECT
OF ACCOUNTING CHANGES 5,380 5,864 5,628 3,665
Provision for income taxes 1,879 2,017 1,898 1,204
Minority interest, net of income taxes 17 18 24 32
------------ ------------ ------------ ------------
INCOME FROM CONTINUING OPERATIONS BEFORE CUMULATIVE
EFFECT OF ACCOUNTING CHANGES 3,484 3,829 3,706 2,429
DISCONTINUED OPERATIONS(3)
Income (Loss) from Discontinued Operations 455 359 151 -
Gain on Sale of Stock by Subsidiary 1,270 - - -
Provision (benefit) for income taxes 319 104 (63) -
------------ ------------ ------------ ------------
INCOME (LOSS) FROM DISCONTINUED OPERATIONS 1,406 255 214 -
Cumulative Effect of Accounting Changes(4) (47) - - -
------------ ------------ ------------ ------------
NET INCOME $ 4,843 $ 4,084 $ 3,920 $ 2,429
============ ============ ============ ============
<Caption>
4Q 2002 VS. YTD YTD YTD 4Q 2002 VS.
4Q 2001 INCREASE/ 4Q 4Q YTD 4Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
----------------- ---------- ---------- ----------------------
REVENUES
Loan interest, including fees - $ 39,588 $ 37,903 (4%)
Other interest and dividends (4%) 24,896 21,036 (16%)
Insurance premiums (15%) 3,450 3,410 (1%)
Commissions and fees (12%) 15,593 15,258 (2%)
Principal transactions (45%) 5,544 4,169 (25%)
Asset management and administration fees (9%) 5,389 5,146 (5%)
Realized gains (losses) from sales of investments (28%) 237 (485) NM
Other income 53% 4,463 6,119 37%
---------- ----------
Total revenues (3%) 99,160 92,556 (7%)
Interest expense (12%) 31,793 21,248 (33%)
---------- ----------
Total revenues, net of interest expense - 67,367 71,308 6%
---------- ----------
BENEFITS, CLAIMS, AND CREDIT LOSSES
Policyholder benefits and claims (13%) 3,520 3,478 (1%)
Provision for credit losses 19% 6,800 9,995 47%
---------- ----------
Total benefits, claims, and credit losses 9% 10,320 13,473 31%
---------- ----------
OPERATING EXPENSES
Non-insurance compensation and benefits (13%) 19,449 18,650 (4%)
Insurance underwriting, acquisition and operating 9% 1,115 992 (11%)
Restructuring-related items(1) NM 454 (15) NM
Other operating(2) 49% 15,510 17,671 14%
---------- ----------
Total operating expenses 16% 36,528 37,298 2%
---------- ----------
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME
TAXES, MINORITY INTEREST AND CUMULATIVE EFFECT
OF ACCOUNTING CHANGES (32%) 20,519 20,537 -
Provision for income taxes (33%) 7,203 6,998 (3%)
Minority interest, net of income taxes (14%) 87 91 5%
---------- ----------
INCOME FROM CONTINUING OPERATIONS BEFORE CUMULATIVE
EFFECT OF ACCOUNTING CHANGES (32%) 13,229 13,448 2%
DISCONTINUED OPERATIONS(3)
Income (Loss) from Discontinued Operations NM 1,378 965 (30%)
Gain on Sale of Stock by Subsidiary NM - 1,270 -
Provision (benefit) for income taxes NM 323 360 11%
---------- ----------
INCOME (LOSS) FROM DISCONTINUED OPERATIONS NM 1,055 1,875 78%
Cumulative Effect of Accounting Changes(4) - (158) (47) 70%
---------- ----------
NET INCOME (37%) $ 14,126 $ 15,276 8%
========== ==========
</Table>
(1) Restructuring-related items in the 2001 first quarter related principally to
severance and costs associated with the reduction of staff in the Global
Corporate and Investment Bank businesses, in the 2001 second quarter related
principally to severance and costs associated with the reduction of staff
primarily in the Global Corporate and Investment Bank and Global Consumer
businesses, in the 2001 third quarter primarily related to the acquisition
of Banamex and the integration of its operations, in the 2001 fourth quarter
primarily related to reductions in the reserve due to changes in estimates,
in the 2002 first quarter primarily related to severance and costs
associated with the reduction of staff in Argentina within the Latin America
consumer and corporate businesses, in the 2002 second and third quarters
primarily related to reductions in the reserve due to changes in estimates,
and in the 2002 fourth quarter primarily related to the acquisition of
Golden State Bancorp and the integration of its operations.
(2) Other operating expenses include the amortization of goodwill and certain
intangible assets totalling approximately $152 million, $155 million, $147
million and $156 million in the first, second, third and fourth quarters of
2001, respectively. Amortization of these assets ceased upon adoption of
SFAS 142 on January 1, 2002.
(3) Travelers Property Casualty Corp. (TPC) (a wholly-owned subsidiary of
Citigroup on December 31, 2001) sold 231,000,000 shares of class A common
stock at $18.50 per share in an initial public offering (IPO) on March 27,
2002. Citigroup made a tax-free distribution to its stockholders of a
portion of its ownership interest in TPC on August 20, 2002. Discontinued
Operations includes the operations of TPC, the $1.270 billion ($1.158
billion after-tax) gain on the IPO and income taxes on the operations and
IPO gain. Citigroup remains a holder of approximately 9.9% of TPC's common
equity.
(4) Accounting Changes refer to the 2001 first quarter adoption of Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities", as amended (SFAS 133), the 2001 second
quarter adoption of EITF issue 99-20, "Recognition of Interest Income and
Impairment on Purchased and Retained Beneficial Interests in Securitized
Financial Assets" (EITF 99-20), and the 2002 first quarter adoption of the
remaining provisions of SFAS No. 142, "Goodwill and Other Intangible Assets"
(SFAS 142).
NM Not meaningful
Page 24
<Page>
CITIGROUP EARNINGS ANALYSIS - MANAGED BASIS [CITIGROUP LOGO]
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q
2001 2001 2001 2001
------------ ------------ ------------ ------------
Total Revenues, Net of Interest Expense $ 17,070 $ 16,232 $ 16,198 $ 17,867
Realized Insurance Investment Portfolio (Gains)/Losses (115) (1) (98) 71
Effect of Securitization Activities 766 930 907 965
------------ ------------ ------------ ------------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 17,721 17,161 17,007 18,903
Total Operating Expenses(1) 9,734 8,821 8,766 9,207
Restructuring-Related Items(2) (132) (210) (133) 21
------------ ------------ ------------ ------------
ADJUSTED OPERATING EXPENSES 9,602 8,611 8,633 9,228
Benefits, Claims and Credit Losses 2,417 2,248 2,400 3,255
Effect of Securitization Activities 766 930 907 965
------------ ------------ ------------ ------------
ADJUSTED BENEFITS, CLAIMS AND CREDIT LOSSES 3,183 3,178 3,307 4,220
CORE INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 4,936 5,372 5,067 5,455
Taxes on Core Income 1,809 1,917 1,786 1,814
Minority Interest, Net of Income Taxes 9 15 26 37
------------ ------------ ------------ ------------
CORE INCOME 3,118 3,440 3,255 3,604
Restructuring-Related Items, After-tax(2) (80) (131) (84) 13
Cumulative Effect of Accounting Changes(3) (42) (116) - -
Realized Insurance Investment Portfolio Gains/(Losses),
After-tax 74 2 64 (46)
Discontinued Operations, After-tax(4) 468 341 (58) 304
------------ ------------ ------------ ------------
NET INCOME $ 3,538 $ 3,536 $ 3,177 $ 3,875
============ ============ ============ ============
<Caption>
1Q 2Q 3Q 4Q
2002 2002 2002 2002
------------ ------------ ------------ ------------
Total Revenues, Net of Interest Expense $ 17,798 $ 17,993 $ 17,644 $ 17,873
Realized Insurance Investment Portfolio (Gains)/Losses (25) 185 170 -
Effect of Securitization Activities 1,021 1,081 960 1,061
------------ ------------ ------------ ------------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 18,794 19,259 18,774 18,934
Total Operating Expenses(1) 9,056 9,147 8,440 10,655
Restructuring-Related Items(2) (46) 40 41 (20)
------------ ------------ ------------ ------------
ADJUSTED OPERATING EXPENSES 9,010 9,187 8,481 10,635
Benefits, Claims and Credit Losses 3,362 2,982 3,576 3,553
Effect of Securitization Activities 1,021 1,081 960 1,061
------------ ------------ ------------ ------------
ADJUSTED BENEFITS, CLAIMS AND CREDIT LOSSES 4,383 4,063 4,536 4,614
CORE INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 5,401 6,009 5,757 3,685
Taxes on Core Income 1,887 2,068 1,940 1,213
Minority Interest, Net of Income Taxes 17 18 24 32
------------ ------------ ------------ ------------
CORE INCOME 3,497 3,923 3,793 2,440
Restructuring-Related Items, After-tax(2) (29) 26 27 (14)
Cumulative Effect of Accounting Changes(3) (47) - - -
Realized Insurance Investment Portfolio Gains/(Losses),
After-tax 16 (120) (114) 3
Discontinued Operations, After-tax(4) 1,406 255 214 -
------------ ------------ ------------ ------------
NET INCOME $ 4,843 $ 4,084 $ 3,920 $ 2,429
============ ============ ============ ============
<Caption>
4Q 2002 VS. YTD YTD YTD 4Q 2002 VS.
4Q 2001 INCREASE/ 4Q 4Q YTD 4Q 2001 INCREASE/
(DECREASE) 2001 2002 (DECREASE)
----------------- ---------- ---------- ---------------------
Total Revenues, Net of Interest Expense - $ 67,367 $ 71,308 6%
Realized Insurance Investment Portfolio (Gains)/Losses (100%) (143) 330 NM
Effect of Securitization Activities 10% 3,568 4,123 16%
---------- ----------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE - 70,792 75,761 7%
Total Operating Expenses(1) 16% 36,528 37,298 2%
Restructuring-Related Items(2) NM (454) 15 NM
---------- ----------
ADJUSTED OPERATING EXPENSES 15% 36,074 37,313 3%
Benefits, Claims and Credit Losses 9% 10,320 13,473 31%
Effect of Securitization Activities 10% 3,568 4,123 16%
---------- ----------
ADJUSTED BENEFITS, CLAIMS AND CREDIT LOSSES 9% 13,888 17,596 27%
CORE INCOME BEFORE INCOME TAXES AND MINORITY INTEREST (32%) 20,830 20,852 -
Taxes on Core Income (33%) 7,326 7,108 (3%)
Minority Interest, Net of Income Taxes (14%) 87 91 5%
---------- ----------
CORE INCOME (32%) 13,417 13,653 2%
Restructuring-Related Items, After-tax(2) NM (282) 10 NM
Cumulative Effect of Accounting Changes(3) - (158) (47) 70%
Realized Insurance Investment Portfolio Gains/(Losses),
After-tax NM 94 (215) NM
Discontinued Operations, After-tax(4) NM 1,055 1,875 78%
---------- ----------
NET INCOME (37%) $ 14,126 $ 15,276 8%
========== ==========
</Table>
(1) Other operating expenses include the amortization of goodwill and certain
intangible assets totalling approximately $152 million, $155 million, $147
million and $156 million in the first, second, third and fourth quarters of
2001, respectively. Amortization of these assets ceased upon adoption of
SFAS 142 on January 1, 2002.
(2) Restructuring-related items in the 2001 first quarter related principally to
severance and costs associated with the reduction of staff in the Global
Corporate and Investment Bank businesses,in the 2001 second quarter related
principally to severance and costs associated with the reduction of staff
primarily in the Global Corporate and Investment Bank and Global Consumer
businesses, in the 2001 third quarter primarily related to the acquisition
of Banamex and the integration of its operations, in the 2001 fourth quarter
primarily related to reductions in the reserve due to changes in estimates,
in the 2002 first quarter primarily related to severance and costs
associated with the reduction of staff in Argentina within the Latin America
consumer and corporate businesses, in the 2002 second and third quarters
primarily related to reductions in the reserve due to changes in estimates,
and in the 2002 fourth quarter primarily related to the acquisition of
Golden State Bancorp and the integration of its operations.
(3) Accounting Changes refer to the 2001 first quarter adoption of Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities", as amended (SFAS 133), the 2001 second
quarter adoption of EITF issue 99-20, "Recognition of Interest Income and
Impairment on Purchased and Retained Beneficial Interests in Securitized
Financial Assets" (EITF 99-20), and the 2002 first quarter adoption of the
remaining provisions of SFAS No. 142, "Goodwill and Other Intangible Assets"
(SFAS 142).
(4) Travelers Property Casualty Corp. (TPC) (a wholly-owned subsidiary of
Citigroup on December 31, 2001) sold 231,000,000 shares of class A common
stock at $18.50 per share in an initial public offering (IPO) on March 27,
2002. Citigroup made a tax-free distribution to its stockholders of a
portion of its ownership interest in TPC on August 20, 2002. Discontinued
Operations includes the operations of TPC, the $1.270 billion ($1.158
billion after-tax) gain on the IPO and income taxes on the operations and
IPO gain. Citigroup remains a holder of approximately 9.9% of TPC's common
equity.
NM Not meaningful
Page 25
<Page>
CITIGROUP CONSOLIDATED STATEMENT OF FINANCIAL POSITION(1) [CITIGROUP LOGO]
(In millions of dollars)
<Table>
<Caption>
MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31,
2001 2001 2001 2001
------------- ------------- ------------- -------------
ASSETS
Cash and due from banks (including segregated cash
and other deposits) $ 14,373 $ 15,081 $ 21,877 $ 18,515
Deposits at interest with banks 19,284 15,199 17,488 19,216
Federal funds sold and securities purchased under
resale agreements 134,188 138,668 138,582 134,809
Brokerage receivables 24,592 23,238 50,004 35,155
Trading account assets 137,137 145,113 155,292 144,904
Investments 125,698 123,480 147,879 161,376
Loans, net of unearned income
Consumer 220,780 225,018 246,779 247,662
Corporate 145,497 143,608 152,636 143,732
------------- ------------- ------------- -------------
Loans, net of unearned income 366,277 368,626 399,415 391,394
Allowance for credit losses (8,957) (8,917) (9,918) (10,088)
------------- ------------- ------------- -------------
Total loans, net 357,320 359,709 389,497 381,306
Goodwill 11,949 11,975 23,327 23,861
Intangible assets 7,656 7,575 8,760 9,003
Reinsurance recoverables 10,507 10,636 12,064 12,373
Separate and variable accounts 23,514 25,102 23,080 25,569
Other assets 78,109 77,651 80,399 85,363
------------- ------------- ------------- -------------
TOTAL ASSETS $ 944,327 $ 953,427 $ 1,068,249 $ 1,051,450
============= ============= ============= =============
LIABILITIES
Non-interest-bearing deposits in U.S. offices $ 16,755 $ 18,056 $ 20,598 $ 23,054
Interest-bearing deposits in U.S. offices 81,637 85,515 102,572 110,388
Non-interest-bearing deposits in offices outside the U.S. 13,975 14,115 16,463 18,779
Interest-bearing deposits in offices outside the U.S. 200,918 196,912 217,537 222,304
------------- ------------- ------------- -------------
Total deposits 313,285 314,598 357,170 374,525
Federal funds purchased and securities sold under repurchase
agreements 136,239 148,365 154,709 153,511
Brokerage payables 13,415 16,517 45,643 32,891
Trading account liabilities 84,783 76,034 74,508 80,543
Contractholder funds and separate and variable accounts 44,501 46,812 45,714 48,932
Insurance policy and claims reserves 45,157 45,432 48,667 49,294
Investment banking and brokerage borrowings 18,338 13,307 11,488 16,480
Short-term borrowings 48,474 45,923 50,632 24,461
Long-term debt 118,080 121,705 128,276 121,631
Other liabilities(3) 48,476 49,631 65,918 60,810
------------- ------------- ------------- -------------
Citigroup or subsidiary obligated mandatorily redeemable
securities of subsidiary trusts holding solely junior
subordinated debt securities of --Parent 2,300 2,300 4,850 4,850
--Subsidiary 2,620 2,275 2,275 2,275
------------- ------------- ------------- -------------
TOTAL LIABILITIES 875,668 882,899 989,850 970,203
------------- ------------- ------------- -------------
STOCKHOLDERS' EQUITY
Preferred Stock 1,747 1,763 1,774 1,525
Common Stock 54 54 55 55
Additional paid-in capital 17,050 16,881 23,150 23,196
Retained earnings 61,660 64,460 66,781 69,803
Treasury stock (10,299) (10,763) (11,170) (11,099)
Accumulated other changes in equity from nonowner sources 235 (90) (559) (844)
Unearned compensation (1,788) (1,777) (1,632) (1,389)
------------- ------------- ------------- -------------
TOTAL STOCKHOLDERS' EQUITY 68,659 70,528 78,399 81,247
------------- ------------- ------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 944,327 $ 953,427 $ 1,068,249 $ 1,051,450
============= ============= ============= =============
<Caption>
MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31,
2002 2002 2002 2002(2)
------------- ------------- ------------- -------------
ASSETS
Cash and due from banks (including segregated cash
and other deposits) $ 15,984 $ 17,686 $ 15,886 $ 17,326
Deposits at interest with banks 17,189 16,768 15,183 16,382
Federal funds sold and securities purchased under
resale agreements 150,605 148,384 157,482 139,946
Brokerage receivables 26,848 21,050 21,208 25,358
Trading account assets 145,059 163,867 161,803 155,208
Investments 172,332 173,185 142,328 169,513
Loans, net of unearned income
Consumer 246,452 260,263 265,600 310,597
Corporate 142,262 142,712 138,016 137,208
------------- ------------- ------------- -------------
Loans, net of unearned income 388,714 402,975 403,616 447,805
Allowance for credit losses (10,520) (10,437) (10,720) (11,501)
------------- ------------- ------------- -------------
Total loans, net 378,194 392,538 392,896 436,304
Goodwill 25,506 25,604 22,559 26,961
Intangible assets 8,885 8,844 7,776 8,509
Reinsurance recoverables 12,531 12,481 4,328 4,356
Separate and variable accounts 25,981 24,017 21,522 22,118
Other assets 78,543 78,882 68,597 75,209
------------- ------------- ------------- -------------
TOTAL ASSETS $ 1,057,657 $ 1,083,306 $ 1,031,568 $ 1,097,190
============= ============= ============= =============
LIABILITIES
Non-interest-bearing deposits in U.S. offices $ 21,652 $ 21,475 $ 22,469 $ 29,545
Interest-bearing deposits in U.S. offices 119,083 114,466 118,101 141,787
Non-interest-bearing deposits in offices outside the U.S. 18,488 19,706 19,343 21,422
Interest-bearing deposits in offices outside the U.S. 223,166 239,231 230,914 238,141
------------- ------------- ------------- -------------
Total deposits 382,389 394,878 390,827 430,895
Federal funds purchased and securities sold under repurchase
agreements 165,120 171,619 164,946 162,643
Brokerage payables 25,790 21,175 19,766 22,024
Trading account liabilities 81,537 86,564 95,699 91,426
Contractholder funds and separate and variable accounts 49,992 49,925 48,347 49,331
Insurance policy and claims reserves 49,840 50,129 16,304 16,350
Investment banking and brokerage borrowings 18,854 18,058 19,951 21,353
Short-term borrowings 24,805 24,638 27,991 30,629
Long-term debt 117,757 114,580 109,672 126,927
Other liabilities(3) 51,229 59,257 51,211 52,742
------------- ------------- ------------- -------------
Citigroup or subsidiary obligated mandatorily redeemable
securities of subsidiary trusts holding solely junior
subordinated debt securities of --Parent 4,326 4,435 4,605 4,657
--Subsidiary 2,380 2,333 1,483 1,495
------------- ------------- ------------- -------------
TOTAL LIABILITIES 974,019 997,591 950,802 1,010,472
------------- ------------- ------------- -------------
STOCKHOLDERS' EQUITY
Preferred Stock 1,400 1,400 1,400 1,400
Common Stock 55 55 55 55
Additional paid-in capital 23,860 23,815 16,795 17,381
Retained earnings 73,798 76,924 79,911 81,403
Treasury stock (11,194) (12,624) (14,363) (11,637)
Accumulated other changes in equity from nonowner sources (1,770) (1,726) (1,095) (193)
Unearned compensation (2,511) (2,129) (1,937) (1,691)
------------- ------------- ------------- -------------
TOTAL STOCKHOLDERS' EQUITY 83,638 85,715 80,766 86,718
------------- ------------- ------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,057,657 $ 1,083,306 $ 1,031,568 $ 1,097,190
============= ============= ============= =============
<Caption>
DECEMBER 31, 2002
VS.
DECEMBER 31, 2001
INC (DECR)
-----------------
ASSETS
Cash and due from banks (including segregated cash
and other deposits) (6%)
Deposits at interest with banks (15%)
Federal funds sold and securities purchased under
resale agreements 4%
Brokerage receivables (28%)
Trading account assets 7%
Investments 5%
Loans, net of unearned income
Consumer 25%
Corporate (5%)
Loans, net of unearned income 14%
Allowance for credit losses (14%)
Total loans, net 14%
Goodwill 13%
Intangible assets (5%)
Reinsurance recoverables (65%)
Separate and variable accounts (13%)
Other assets (12%)
TOTAL ASSETS 4%
LIABILITIES
Non-interest-bearing deposits in U.S. offices 28%
Interest-bearing deposits in U.S. offices 28%
Non-interest-bearing deposits in offices outside the U.S. 14%
Interest-bearing deposits in offices outside the U.S. 7%
Total deposits 15%
Federal funds purchased and securities sold under repurchase
agreements 6%
Brokerage payables (33%)
Trading account liabilities 14%
Contractholder funds and separate and variable accounts 1%
Insurance policy and claims reserves (67%)
Investment banking and brokerage borrowings 30%
Short-term borrowings 25%
Long-term debt 4%
Other liabilities(3) (13%)
Citigroup or subsidiary obligated mandatorily redeemable
securities of subsidiary trusts holding solely junior
subordinated debt securities of --Parent (4%)
--Subsidiary (34%)
TOTAL LIABILITIES 4%
STOCKHOLDERS' EQUITY
Preferred Stock (8%)
Common Stock -
Additional paid-in capital (25%)
Retained earnings 17%
Treasury stock (5%)
Accumulated other changes in equity from nonowner sources 77%
Unearned compensation (22%)
TOTAL STOCKHOLDERS' EQUITY 7%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 4%
</Table>
(1) Periods prior to September 30, 2002, include balances for Travelers Property
Casualty Corp.
(2) Preliminary
(3) Includes allowance for credit losses for letters of credit of $50 million
for the first, second, third and fourth quarters of 2001, respectively, and
$50, $110, $110 and $167 million for the first, second, third and fourth
quarters of 2002, respectively.
Reclassified to conform to the current period's presentation.
Page 26
<Page>
CONSUMER LOAN DELINQUENCY AMOUNTS, NET CREDIT LOSSES AND RATIOS [CITIGROUP LOGO]
(In millions of dollars, except loan amounts in billions)
<Table>
<Caption>
EOP
90 DAYS OR MORE PAST DUE(1) LOANS
----------------------------------------------------
4Q01 3Q02 4Q02 4Q02
---------- ---------- ---------- ----------
PRODUCT VIEW:
CARDS $ 2,384 $ 2,305 $ 2,398 $ 130.4
RATIO 1.96% 1.86% 1.84%
NORTH AMERICA CARDS 2,209 2,108 2,185 118.4
RATIO 1.99% 1.87% 1.85%
INTERNATIONAL CARDS 175 197 213 12.0
RATIO 1.65% 1.79% 1.77%
CONSUMER FINANCE 2,243 2,101 2,119 84.1
RATIO 3.04% 2.64% 2.52%
NORTH AMERICA CONSUMER FINANCE 2,001 1,776 1,785 67.7
RATIO 3.36% 2.82% 2.64%
INTERNATIONAL CONSUMER FINANCE 242 325 334 16.4
RATIO 1.71% 1.97% 2.04%
RETAIL BANKING 3,437 3,490 4,238 146.2
RATIO 3.30% 3.24% 2.90%
NORTH AMERICA RETAIL BANKING 2,299 2,243 2,906 109.2
RATIO 3.42% 3.11% 2.66%
INTERNATIONAL RETAIL BANKING 1,138 1,247 1,332 37.0
RATIO 3.08% 3.48% 3.60%
PRIVATE BANK 135 201 174 30.9
RATIO 0.54% 0.70% 0.56%
OTHER 11 - - 1.0
- -----------------------------------------------------------------------------------------------
TOTAL MANAGED $ 8,210 $ 8,097 $ 8,929 $ 392.6
RATIO 2.50% 2.37% 2.27%
- -----------------------------------------------------------------------------------------------
REGIONAL VIEW:
NORTH AMERICA (EXCLUDING MEXICO) $ 5,567 $ 5,581 $ 6,338 $ 304.4
RATIO 2.28% 2.18% 2.08%
MEXICO 1,032 659 638 9.8
RATIO 9.04% 7.04% 6.52%
WESTERN EUROPE 810 1,090 1,208 25.1
RATIO 4.04% 4.62% 4.80%
JAPAN 192 260 258 17.6
RATIO 1.16% 1.51% 1.46%
ASIA (EXCLUDING JAPAN) 385 340 335 27.4
RATIO 1.44% 1.27% 1.22%
LATIN AMERICA 166 101 79 3.2
RATIO 3.52% 3.12% 2.49%
CEEMEA 58 66 73 5.1
RATIO 1.22% 1.34% 1.44%
- -----------------------------------------------------------------------------------------------
TOTAL MANAGED $ 8,210 $ 8,097 $ 8,929 $ 392.6
RATIO 2.50% 2.37% 2.27%
- -----------------------------------------------------------------------------------------------
<Caption>
AVERAGE
NET CREDIT LOSSES(1) LOANS
----------------------------------------------------
4Q01 3Q02 4Q02 4Q02
---------- ---------- ---------- ----------
PRODUCT VIEW:
CARDS $ 1,693 $ 1,767 $ 1,773 $ 125.4
RATIO 5.69% 5.75% 5.61%
NORTH AMERICA CARDS 1,589 1,616 1,652 114.1
RATIO 5.86% 5.77% 5.75%
INTERNATIONAL CARDS 104 151 121 11.3
RATIO 3.96% 5.46% 4.23%
CONSUMER FINANCE 658 764 838 82.3
RATIO 3.54% 3.83% 4.04%
NORTH AMERICA CONSUMER FINANCE 460 438 515 65.9
RATIO 3.08% 2.79% 3.10%
INTERNATIONAL CONSUMER FINANCE 198 326 323 16.4
RATIO 5.40% 7.68% 7.81%
RETAIL BANKING 206 186 152 131.4
RATIO 0.78% 0.68% 0.46%
NORTH AMERICA RETAIL BANKING 100 65 43 94.8
RATIO 0.59% 0.37% 0.18%
INTERNATIONAL RETAIL BANKING 106 121 109 36.6
RATIO 1.12% 1.26% 1.18%
PRIVATE BANK 10 5 7 29.2
RATIO 0.15% 0.08% 0.10%
OTHER 23 (1) 1 1.1
- -----------------------------------------------------------------------------------------------
TOTAL MANAGED $ 2,590 $ 2,721 $ 2,771 $ 369.4
RATIO 3.17% 3.19% 2.98%
- -----------------------------------------------------------------------------------------------
REGIONAL VIEW:
NORTH AMERICA (EXCLUDING MEXICO) $ 2,107 $ 2,076 $ 2,195 $ 283.2
RATIO 3.49% 3.28% 3.07%
MEXICO 74 46 20 9.5
RATIO 2.62% 1.90% 0.83%
WESTERN EUROPE 87 129 107 24.3
RATIO 1.72% 2.19% 1.74%
JAPAN 175 309 306 17.4
RATIO 3.99% 6.21% 6.97%
ASIA (EXCLUDING JAPAN) 72 108 87 26.9
RATIO 1.07% 1.58% 1.28%
LATIN AMERICA 63 39 40 3.2
RATIO 4.65% 4.72% 5.08%
CEEMEA 12 14 16 4.9
RATIO 1.04% 1.14% 1.34%
- -----------------------------------------------------------------------------------------------
TOTAL MANAGED $ 2,590 $ 2,721 $ 2,771 $ 369.4
RATIO 3.17% 3.19% 2.98%
- -----------------------------------------------------------------------------------------------
</Table>
(1) The ratios of 90 days or more past due and net credit losses are
calculated based on end-of-period and average loans, respectively,
both net of unearned income.
Reclassified to conform to the current period's presentation.
Page 27
<Page>
RESERVE FOR LOAN LOSSES [CITIGROUP LOGO]
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q
2001 2001 2001 2001
---------- ---------- ---------- ----------
ALLOWANCE FOR CREDIT LOSSES AT BEGINNING OF PERIOD $ 8,961 $ 8,957 $ 8,917 $ 9,918
---------- ---------- ---------- ----------
PROVISION FOR CREDIT LOSSES:
Global Consumer 1,197 1,196 1,362 1,573
Global Corporate and Investment Bank 147 126 86 494
CitiCapital 130 163 132 194
---------- ---------- ---------- ----------
1,474 1,485 1,580 2,261
---------- ---------- ---------- ----------
GROSS CREDIT LOSSES:
Global Consumer 1,364 1,407 1,590 1,884
Global Corporate and Investment Bank 181 181 171 632
CitiCapital 150 188 229 311
---------- ---------- ---------- ----------
1,695 1,776 1,990 2,827
---------- ---------- ---------- ----------
CREDIT RECOVERIES:
Global Consumer 199 183 211 260
Global Corporate and Investment Bank 33 56 87 118
CitiCapital 21 26 32 34
---------- ---------- ---------- ----------
253 265 330 412
---------- ---------- ---------- ----------
NET CREDIT LOSSES
Global Consumer 1,165 1,224 1,379 1,624
Global Corporate and Investment Bank 148 125 84 514
CitiCapital 129 162 197 277
---------- ---------- ---------- ----------
1,442 1,511 1,660 2,415
---------- ---------- ---------- ----------
Other -- net(1)(2) (36) (14) 1,081 324
---------- ---------- ---------- ----------
ALLOWANCE FOR CREDIT LOSSES AT END OF PERIOD $ 8,957 $ 8,917 $ 9,918 $ 10,088
========== ========== ========== ==========
Net Consumer Credit Losses $ 1,165 $ 1,224 $ 1,379 $ 1,624
As a Percentage of Average Consumer Loans 2.10% 2.19% 2.28% 2.63%
Net Corporate Credit Losses (excluding CitiCapital) $ 148 $ 125 $ 84 $ 514
As a Percentage of Average Corporate Loans 0.55% 0.46% 0.29% 1.80%
Net CitiCapital Credit Losses $ 129 $ 162 $ 197 $ 277
As a Percentage of Average CitiCapital Loans 1.72% 2.16% 2.47% 3.56%
ALLOWANCE FOR CREDIT LOSSES
Consumer $ 4,956 $ 4,914 $ 5,454 $ 5,507
Corporate (excluding CitiCapital) 3,249 3,257 3,715 3,898
CitiCapital 752 746 749 683
---------- ---------- ---------- ----------
ALLOWANCE FOR CREDIT LOSSES $ 8,957 $ 8,917 $ 9,918 $ 10,088
---------- ---------- ---------- ----------
ALLOWANCE FOR CREDIT LOSSES ON LETTERS OF CREDIT(3) $ 50 $ 50 $ 50 $ 50
---------- ---------- ---------- ----------
TOTAL ALLOWANCE FOR LOANS, LEASES, LENDING
COMMITMENTS AND LETTERS OF CREDIT $ 9,007 $ 8,967 $ 9,968 $ 10,138
========== ========== ========== ==========
ALLOWANCE AS A PERCENT OF TOTAL LOANS
Consumer 2.24% 2.18% 2.21% 2.22%
Corporate (excluding CitiCapital) 2.83% 2.87% 3.09% 3.44%
CitiCapital 2.44% 2.46% 2.32% 2.25%
Total 2.45% 2.42% 2.48% 2.58%
<Caption>
1Q 2Q 3Q 4Q
2002 2002 2002 2002
---------- ---------- ---------- ----------
ALLOWANCE FOR CREDIT LOSSES AT BEGINNING OF PERIOD $ 10,088 $ 10,520 $ 10,437 $ 10,720
---------- ---------- ---------- ----------
PROVISION FOR CREDIT LOSSES:
Global Consumer 1,878 1,599 1,885 1,792
Global Corporate and Investment Bank 569 265 668 779
CitiCapital 112 193 136 119
---------- ---------- ---------- ----------
2,559 2,057 2,689 2,690
---------- ---------- ---------- ----------
GROSS CREDIT LOSSES:
Global Consumer 1,898 1,941 2,039 2,033
Global Corporate and Investment Bank 370 368 533 604
CitiCapital 187 258 172 162
---------- ---------- ---------- ----------
2,455 2,567 2,744 2,799
---------- ---------- ---------- ----------
CREDIT RECOVERIES:
Global Consumer 255 259 278 323
Global Corporate and Investment Bank 42 106 72 104
CitiCapital 30 35 32 27
---------- ---------- ---------- ----------
327 400 382 454
---------- ---------- ---------- ----------
NET CREDIT LOSSES
Global Consumer 1,643 1,682 1,761 1,710
Global Corporate and Investment Bank 328 262 461 500
CitiCapital 157 223 140 135
---------- ---------- ---------- ----------
2,128 2,167 2,362 2,345
---------- ---------- ---------- ----------
Other -- net(1)(2) 1 27 (44) 436
---------- ---------- ---------- ----------
ALLOWANCE FOR CREDIT LOSSES AT END OF PERIOD $ 10,520 $ 10,437 $ 10,720 $ 11,501
========== ========== ========== ==========
Net Consumer Credit Losses $ 1,643 $ 1,682 $ 1,761 $ 1,710
As a Percentage of Average Consumer Loans 2.71% 2.65% 2.65% 2.33%
Net Corporate Credit Losses (excluding CitiCapital) $ 328 $ 262 $ 461 $ 500
As a Percentage of Average Corporate Loans 1.22% 0.96% 1.70% 1.84%
Net CitiCapital Credit Losses $ 157 $ 223 $ 140 $ 135
As a Percentage of Average CitiCapital Loans 2.15% 3.09% 1.97% 1.96%
ALLOWANCE FOR CREDIT LOSSES
Consumer $ 5,732 $ 5,756 $ 5,849 $ 6,410
Corporate (excluding CitiCapital) 4,152 4,051 4,244 4,480
CitiCapital 636 630 627 611
---------- ---------- ---------- ----------
ALLOWANCE FOR CREDIT LOSSES $ 10,520 $ 10,437 $ 10,720 $ 11,501
---------- ---------- ---------- ----------
ALLOWANCE FOR CREDIT LOSSES ON LETTERS OF CREDIT(3) $ 50 $ 110 $ 110 $ 167
---------- ---------- ---------- ----------
TOTAL ALLOWANCE FOR LOANS, LEASES, LENDING
COMMITMENTS AND LETTERS OF CREDIT $ 10,570 $ 10,547 $ 10,830 $ 11,668
========== ========== ========== ==========
ALLOWANCE AS A PERCENT OF TOTAL LOANS
Consumer 2.33% 2.21% 2.20% 2.06%
Corporate (excluding CitiCapital) 3.67% 3.56% 3.85% 4.07%
CitiCapital 2.18% 2.18% 2.26% 2.26%
Total 2.71% 2.59% 2.66% 2.57%
</Table>
(1) The 2001 third quarter includes the addition of $1 billion of credit loss
reserves related to the acquisition of Banamex. A review of the Banamex
credit portfolio was completed in the 2001 fourth quarter resulting in an
increase to the allowance for credit losses. This increase does not relate
to credit deterioration in the 2001 fourth quarter.
(2) The 2002 fourth quarter includes the addition of $452 million of credit
loss reserves related to the acquisition of Golden State Bancorp.
(3) Represents additional credit reserves recorded as other liabilities on the
balance sheet.
Page 28
<Page>
NON-PERFORMING ASSETS [CITIGROUP LOGO]
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q
2001 2001 2001 2001
---------- ---------- ---------- ----------
CASH-BASIS AND RENEGOTIATED LOANS
CORPORATE CASH-BASIS LOANS
Collateral Dependent (at lower of cost or
collateral value)(1) $ 528 $ 527 $ 699 $ 699
Other 1,879 2,079 2,404 2,834
---------- ---------- ---------- ----------
Total Corporate Cash-Basis Loans $ 2,407 $ 2,606 $ 3,103 $ 3,533
========== ========== ========== ==========
CORPORATE CASH-BASIS LOANS
CitiCapital $ 439 $ 495 $ 613 $ 625
JENA(2) 710 654 620 900
Other International(3) 1,195 1,420 1,838 1,987
Insurance Subsidiaries 55 24 26 19
Investment Activities 8 13 6 2
---------- ---------- ---------- ----------
Total Corporate Cash-Basis Loans $ 2,407 $ 2,606 $ 3,103 $ 3,533
========== ========== ========== ==========
CORPORATE CASH-BASIS LOANS AS A % OF
TOTAL CORPORATE LOANS 1.65% 1.81% 2.03% 2.46%
CORPORATE RENEGOTIATED LOANS $ 434 $ 435 $ 369 $ 336
========== ========== ========== ==========
CONSUMER LOANS ON WHICH ACCRUAL OF INTEREST
HAS BEEN SUSPENDED $ 3,814 $ 4,134 $ 4,748 $ 4,742
========== ========== ========== ==========
OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS
Consumer(4) $ 268 $ 289 $ 407 $ 393
---------- ---------- ---------- ----------
Global Corporate and Investment Bank 178 199 189 147
Insurance Subsidiaries 123 111 112 118
---------- ---------- ---------- ----------
Total Corporate(4) 301 310 301 265
---------- ---------- ---------- ----------
Corporate/Other 8 8 9 8
---------- ---------- ---------- ----------
TOTAL OTHER REAL ESTATE OWNED $ 577 $ 607 $ 717 $ 666
========== ========== ========== ==========
OTHER REPOSSESSED ASSETS(5) $ 419 $ 409 $ 479 $ 439
========== ========== ========== ==========
<Caption>
1Q 2Q 3Q 4Q
2002 2002 2002 2002
---------- ---------- ---------- ----------
CASH-BASIS AND RENEGOTIATED LOANS
CORPORATE CASH-BASIS LOANS
Collateral Dependent (at lower of cost or
collateral value)(1) $ 493 $ 485 $ 473 $ 616
Other 3,502 4,088 4,352 4,286
---------- ---------- ---------- ----------
Total Corporate Cash-Basis Loans $ 3,995 $ 4,573 $ 4,825 $ 4,902
========== ========== ========== ==========
CORPORATE CASH-BASIS LOANS
CitiCapital $ 674 $ 644 $ 757 $ 845
JENA(2) 924 1,074 1,096 1,207
Other International(3) 2,358 2,766 2,836 2,788
Insurance Subsidiaries 38 38 43 44
Investment Activities 1 51 93 18
---------- ---------- ---------- ----------
Total Corporate Cash-Basis Loans $ 3,995 $ 4,573 $ 4,825 $ 4,902
========== ========== ========== ==========
CORPORATE CASH-BASIS LOANS AS A % OF
TOTAL CORPORATE LOANS 2.81% 3.20% 3.50% 3.57%
CORPORATE RENEGOTIATED LOANS $ 335 $ 317 $ 267 $ 170
========== ========== ========== ==========
CONSUMER LOANS ON WHICH ACCRUAL OF INTEREST
HAS BEEN SUSPENDED $ 4,800 $ 4,752 $ 4,803 $ 5,023
========== ========== ========== ==========
OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS
Consumer(4) $ 384 $ 458 $ 473 $ 495
---------- ---------- ---------- ----------
Global Corporate and Investment Bank 145 136 117 75
Insurance Subsidiaries 125 123 54 36
---------- ---------- ---------- ----------
Total Corporate(4) 270 259 171 111
---------- ---------- ---------- ----------
Corporate/Other - - - -
---------- ---------- ---------- ----------
TOTAL OTHER REAL ESTATE OWNED $ 654 $ 717 $ 644 $ 606
========== ========== ========== ==========
OTHER REPOSSESSED ASSETS(5) $ 381 $ 320 $ 227 $ 230
========== ========== ========== ==========
</Table>
(1) A cash-basis loan is defined as collateral dependent when repayment is
expected to be provided solely by the underlying collateral and there are
no other available and reliable sources of repayment, in which case the
loans are written down to the lower of cost or collateral value.
(2) JENA includes Japan, Western Europe and North America.
(3) Other International includes Asia (excluding Japan), Mexico, Latin America,
Central and Eastern Europe, Middle East and Africa. Banamex loan data from
the third quarter of 2001 forward is included in Mexico. A review of the
Banamex credit portfolio was completed in the 2001 fourth quarter which
caused Corporate cash-basis loans to increase. This increase does not
relate to credit deterioration in the 2001 fourth quarter.
(4) Represents repossessed real estate, carried at lower of cost or fair value,
less costs to sell.
(5) Primarily Corporate transportation equipment, carried at lower of cost or
fair value, less costs to sell.
Reclassified to conform to the current period's presentation.
Page 29
<Page>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: January 21, 2003 CITIGROUP INC.
By: /s/ William P. Hannon
---------------------------------
Name: William P. Hannon
Title: Controller
Principal Accounting Officer