Citigroup, Inc. · NYSE:C
Citigroup — Q1 2019 Earnings Presentation
31 slides from Citigroup's earnings presentation, Apr 15, 2019
Slide 1: First Quarter 2019 Earnings Review
Citi | Investor Relations First Quarter 2019 Earnings Review April 15, 2019
Slide 2: Overview
Overview 1Q’19 showed continued progress – Revenue growth and positive operating leverage in every region in GCB(1,2) – Continued momentum in Institutional accrual businesses and strong results in Investment Banking – Strong expense and credit discipline Progress on key priorities in 2019, with focu
Slide 3: Citigroup – Summary Financial Results
Citigroup – Summary Financial Results(1) ($MM, except EPS) %r %r 1Q'19 4Q'18 1Q'18 • Revenues Revenues $18,576 $17,124 8% $18,872 (2)% – Revenues down 2%. Operating Expenses 10,584 9,893 7% 10,925 (3)% Excluding the impact of the Efficiency Ratio 57.0% 57.8% 57.9% Hilton portfolio sale(4), Operating
Slide 4: Global Consumer Banking
Global Consumer Banking (Constant $MM) Ex-Hilton 1Q'19 4Q'18 QoQ % r 1Q'18 YoY % r YoY % r (1) • Revenues Revenues $8,451 $8,506 (1)% $8,313 2% 4% – Excluding the impact of the North America 5,185 5,254 (1)% 5,157 1% 4% Hilton portfolio sale(1), International 3,266 3,252 0% 3,156 3% 3% revenues
Slide 5: North America Consumer Banking
North America Consumer Banking ($MM) 1Q'19 4Q'18 QoQ % r 1Q'18 YoY % r • Revenues Revenues $5,185 $5,254 (1)% $5,157 1% – Up 4% YoY, excluding the impact of the Retail Banking 1,316 1,331 (1)% 1,307 1% Hilton portfolio sale(3) Mortgage 130 128 1% 148 (12)% – Retail Banking: Excluding mortgage, Ret
Slide 6: International Consumer Banking
International Consumer Banking (Constant $MM) 1Q'19 4Q'18 QoQ % r 1Q'18 YoY % r • Revenues Revenues $3,266 $3,252 0% $3,156 3% – Latin America: Up 5% YoY, excluding the Latin America 1,381 1,412 (2)% 1,297 6% impact of the sale of asset management Asia(1) 1,885 1,840 2% 1,859 1% business(4), pri
Slide 7: Global Consumer Banking – Credit Trends
Global Consumer Banking – Credit Trends (EOP Loans in Constant $B) NCL 90+ DPD Global Consumer Banking North America EOP 1Q'18 4Q'18 1Q'19 EOP 1Q’18 4Q'18 1Q'19 Loans $298.5 $315.4 $307.3 Loans $187.1 $201.3 $193.2 2.97% 2.48% 2.58% 2.63% 2.48% 2.77% 2.72% 2.56% 2.60% 2.20% 2.26% 2.15% 2.30% 2.28% 2
Slide 8: Institutional Clients Group
Institutional Clients Group ($MM) 1Q'19 4Q'18 QoQ % r 1Q'18 YoY % r • Revenues Product Revenues – Total Banking(2): Up 8% YoY, driven Total Banking $5,198 $5,036 3% $4,823 8% by continued momentum and solid - Treasury & Trade Solutions (1) 2,395 2,402 (0)% 2,268 6% performance in TTS and Investmen
Slide 9: Corporate / Other
Corporate / Other(1) ($MM) 1Q'19 4Q'18 QoQ % r 1Q'18 YoY % r • Revenues Revenues $431 $470 (8)% $591 (27)% – Down YoY primarily driven by wind-down of legacy assets Expenses 549 474 16% 742 (26)% • Expenses Credit Costs (25) (47) 47% (7) NM – Down YoY reflecting the wind- EBT (93) 43 NM (144) 35% do
Slide 10: Citigroup – Net Interest Revenue & Margin
Citigroup – Net Interest Revenue & Margin (NIR in Constant $B) 0.036 Citigroup Net Interest Revenue Citigroup NIM 0.031 2.64% 2.70% 2.70% 2.71% 2.72% 0.0261Q’19 1Q’19 QoQ r YoY r $11.55 $11.77 $12.00 $11.76 0.021$0.86 $(0.24) $10.90 0.016 0.011 0.006 0.001 -0.004 -0.009 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19
Slide 11: Citigroup – Key Capital Metrics
Citigroup – Key Capital Metrics ($B, except TBV) Common Equity Tier 1 Capital Ratio(1) Supplementary Leverage Ratio(1) Tangible Book Value / Share(1) 15.0% 12.8% 13.1% 13.0% 12.4% 12.1% 12.1% 90.00 11.7% 11.9% 11.9% 13.0% 11.0% 80.00 9.0% 7.3% 7.2% 7.1% 6.7% 6.7% 6.6% 6.5% 6.4% 6.4% 7.0% 70.00 5.0%
Slide 12: Conclusions
Conclusions Results showed continued momentum across the franchise – Year-over-year revenue growth across products and regions in GCB(1) – Solid performance in TTS, Investment Banking and Securities Services(1) in ICG – Positive operating leverage and continued credit discipline – Delivered 11% YoY
Slide 13: Forward-looking statements
Certain statements in this presentation are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances.
Slide 14: Slide 14
Slide 15: Appendix
Appendix Table of Contents 16. 1Q’19 Returns Analysis 25. Preferred Stock Dividend Schedule 17. Citigroup – LTM Efficiency Ratio and 26. Equity & CET1 Capital Drivers (YoY) Expenses 27. Equity & CET1 Capital Drivers (QoQ) 18. Estimated FX Impact on Key P&L Metrics 28. Common Equity Tier 1 Capital Ra
Slide 16: 1Q'19 Returns Analysis
1Q’19 Returns Analysis ($B) Average Average (2) Net Income GAAP ROA Allocated to Common Assets (bps) TCE(3) RoTCE GCB $1.4 $426 137 $36 16.2% ICG 3.3 1,414 95 85 15.7% (1) Corp / Other (0.3) 99 (16) 30 (4.1)% (1) Citigroup $4.4 $1,939 98 $151 11.9% Note: Totals may not sum due to rounding. (1) Repre
Slide 17: Citigroup – LTM Efficiency Ratio and Expenses
Citigroup – LTM Efficiency Ratio and Expenses ($MM) LTM Efficiency Ratio and Expenses 1Q’19 LTM’19 Operating Efficiency 57.0% 57.2% (1) 59.9% 59.8% YoY r (bps) (91) (97) 59.3% 59.2% YoY r ex FX (bps) (77) (94) 58.5% 58.3% 58.2% 57.9% 57.7% 57.4% 57.2% $43,356 $42,338 $42,319 $42,472 $42,242 $42,232
Slide 18: Estimated FX Impact on Key P&L Metrics
Estimated FX(1) Impact on Key P&L Metrics ($B) Year-over-Year Impact 1Q’19 4Q’18 3Q’18 2Q’18 1Q’18 Revenues $(0.4) $(0.4) $(0.3) $(0.1) $0.3 Expenses (0.3) (0.3) (0.2) (0.0) 0.3 Credit Costs (0.0) (0.0) (0.0) (0.0) 0.0 Earnings Before Taxes $(0.1) $(0.1) $(0.1) $(0.0) $0.0 18 Note: Totals may not su
Slide 19: Asia Consumer Banking – LTM Revenues
Asia Consumer Banking(1) – LTM Revenues (in Constant $B) LTM Revenues Consumer excluding Investment Products Investment Products(2) Consumer excl. Investments LTM YoY Growth(3): 4% 4% 4% 4% 3% 3% 1% 2% 1% $7.24 $7.37 $7.41 $7.42 $7.40 $7.42 $6.95 $7.01 $7.10 1.20 1.19 1.15 1.10 1.05 1.13 1.16 1.08 1
Slide 20: Consumer Credit
Consumer Credit (Constant $B) 1Q'19 Loans Growth 90+ DPD Ratio NCL Ratio ($B) (% ) YoY % 1Q'19 4Q'18 1Q'18 1Q'19 4Q'18 1Q'18 Korea 18.1 5.9% (3.6)% 0.2% 0.2% 0.1% 0.5% 0.4% 0.4% Hong Kong 13.2 4.3% 15.6% 0.1% 0.1% 0.1% 0.2% 0.3% 0.1% Singapore 12.7 4.1% 4.7% 0.1% 0.1% 0.1% 0.3% 0.5% 0.3% Australia 9
Slide 21: Regional Credit Portfolio
Regional Credit Portfolio (1Q’19 EOP in $B) Geographic Loan Distribution Loan Composition Commercial Banking Mexico Korea 6% $203 Mortgages 8% 5% Hong Kong 4% Personal & Other 25% Singapore 4% Cards 1% GCB Taiwan 3% $104 North America Other EM 63% 8% 26% 69% 29% Developed Asia 3% 25% 20% DM EM Hong
Slide 22: Consumer Drivers
Consumer Drivers (1) 1Q'19 4Q'18 3Q'18 2Q'18 1Q'18 YoY QoQ GCB Digital Metrics (MM) North America: Active Digital Customers 18.7 18.5 18.1 17.8 17.7 5% 1% Active Mobile Customers 11.1 11.0 10.5 10.1 9.9 12% 1% International: Active Digital Customers 11.2 10.9 10.4 9.6 9.2 21% 2% Active Mobile Custom
Slide 23: Consumer Drivers Continued
Consumer Drivers Continued Digital / Mobile Customers(1) Agent Contact Rate(2) (MM) Digital Customers Mobile Customers 26% 29.8 27.0 62% (8)% 23.7 19.4 1.38 15.7 1.32 12.0 1.27 1Q'17 1Q'18 1Q'19 1Q'17 1Q'18 1Q'19 LTM'17 LTM'18 LTM'19 E-Statement Penetration(3) E-Payment Penetration(4) ~700 bps 71% 7
Slide 24: Institutional Drivers
Institutional Drivers ICG 1Q'19 4Q'18 3Q'18 2Q'18 1Q'18 YoY QoQ (Constant $B) EOP Deposits: 702 690 683 671 649 8% 2% NA 317 323 318 308 295 8% (2)% EMEA 197 183 178 184 179 10% 7% Latin America 28 27 26 25 24 19% 4% Asia 159 156 162 154 152 5% 2% Average Loans: 357 352 346 343 332 7% 1% NA 176 171
Slide 25: Preferred Stock Dividend Schedule
Preferred Stock Dividend Schedule ($MM) 2018 2019 2020 1Q $272 $262 $254 2Q 318 296 296 3Q 270 254 254 4Q 313 296 296 Total $1,173 $1,109 $1,100 25 Note: Totals may not sum due to rounding. Based on outstanding preferred stock as of April 15, 2019 and reflects the fixed dividend rate of each securit
Slide 26: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 1Q’18 $182.8 $155.6 $144.1 12.1% Impact of: Net Income 18.1 18.1 18.1 154 Preferred Stock Dividends (1.2) (1.2) (1.2) (10) Common Share Repurchases
Slide 27: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 4Q’18 $177.8 $151.1 $139.3 11.9% Impact of: Net Income 4.7 4.7 4.7 40 Preferred Stock Dividends (0.3) (0.3) (0.3) (2) Common Share Repurchases & Div
Slide 28: Common Equity Tier 1 Capital Ratio and Components
Common Equity Tier 1 Capital Ratio and Components ($MM) Common Equity Tier 1 Capital Ratio and Components(1) 1Q'19(2) 4Q'18 3Q'18 2Q'18 1Q'18 Citigroup Common Stockholders' Equity(3) $178,427 $177,928 $178,153 $181,243 $182,943 Add: Qualifying noncontrolling interests 144 147 148 145 140 Regulatory
Slide 29: Supplementary Leverage Ratio; TCE Reconciliation
Supplementary Leverage Ratio; TCE Reconciliation ($MM, except per share amounts) Supplementary Leverage Ratio and Components 1Q'19(1) 4Q'18 3Q'18 2Q'18 1Q'18 Common Equity Tier 1 Capital (CET1) $140,355 $139,252 $140,428 $142,868 $144,128 Additional Tier 1 Capital (AT1)(2) 18,339 18,870 19,449 19,13
Slide 30: Adjusted Results Reconciliation
Adjusted Results Reconciliation ($MM, except EPS) Citigroup 1Q'19 4Q'18 1Q'18 Reported Income Taxes $1,275 $1,001 $1,441 Impact of: Tax Reform(1) - (94) - Adjusted Income Taxes $1,275 $1,095 $1,441 Reported Net Income $4,710 $4,313 $4,620 Impact of: Tax Reform(1) - 94 - Adjusted Net Income $4,710 $4
Slide 31: FX Impact Reconciliation
FX Impact Reconciliation ($MM, except balance sheet items in $B) Citigroup 1Q'19 4Q'18 1Q'18 Latin America Consumer Banking 1Q'19 4Q'18 1Q'18 Reported EOP Assets $1,958 $1,917 $1,922 Reported Revenues $1,381 $1,356 $1,340 Impact of FX Translation - (1) (51) Impact of FX Translation - 56 (43) EOP Ass