Slide 1: Earnings Results Presentation Second Quarter 2024
July 12, 2024 Earnings Results Presentation Second Quarter 2024
Slide 2: Our strategy and path forward remains unchanged
Our strategy and path forward remains unchanged Our Vision Be the preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in our home market Delivering on our Investor Day priorities Transformation Invest for Growth Simplif
Slide 3: The Fed and OCC announcement on Wednesday, July 10, 2024
The Fed and OCC announcement on Wednesday, July 10, 2024 (1) • The Federal Reserve Board (FRB) has issued a civil money penalty to Citigroup Inc. (Citigroup) in the amount of $60.6 million. It has deemed that Citi is delayed in completing milestones included in • Citigroup (Parent) will have no rest
Slide 4: Progress against our priorities in second quarter 2024
Progress against our priorities in second quarter 2024 Transformation Strategic Execution Organization, Culture and Talent • Continued to simplify our technology infrastructure, Strategy: • Vis Raghavan joined to lead our unified Banking retiring almost 300 applications YTD and over 1,000 • Continue
Slide 5: Second quarter 2024 results snapshot
Second quarter 2024 results snapshot Revenues Net Income EPS 2Q24 $20.1 billion 2Q24 $3.2 billion 2Q24 $1.52 ∆ 2Q23 4% ∆ 2Q23 10% ∆ 2Q23 14% RoTCE(1) CET1 Capital Ratio(2) Tangible Book Value Per Share(3) 2Q24 7.2% 2Q24 13.6% 2Q24 $87.53 2Q23 6.4% 2Q23 13.4% ∆ 2Q23 3% Second Quarter Key Highlights S
Slide 6: Financial results overview
Financial results overview Financial Results 2Q24 Financial Overview Highlights ($ in MM, except EPS) 2Q24 % Δ QoQ % Δ YoY YTD '24 % Δ YoY • Revenues Increased 4% YoY, driven by growth across all businesses, as well as Net Interest Income 13,493 - (3)% 27,000 (1)% an approximate $400 million gain re
Slide 7: Quarterly expense trend and 2024 outlook
Quarterly expense trend and 2024 outlook Expense Trend Recent Expense Drivers ($ in B) Reported $13.6B $13.5B $16.0B $14.2B $13.4B Expenses Transformation infrastructure, automate manual processes and Expenses ex- $14.2B $13.8B Investments $13.5B $13.4B $13.2B enhance data and analytics Divestitures
Slide 8: Our Transformation is setting the stage for future success
Our Transformation is setting the stage for future success Transformation of this magnitude is always a multi-year journey and never linear. We are actively addressing areas of focus Examples of progress to date Near-term areas of focus • Built greater efficiency and scale in the risk management of
Slide 9: Net interest income, average loans and deposits
Net interest income, average loans and deposits ($ in B) Net Interest Income 2.48% 2.49% 2.46% 2.42% QoQ YoY 2.41% Citigroup NIM $(0.01) $(0.41) $13.90 $13.83 $13.82 $13.51 $13.49 Markets NII 2.00 1.70 1.99 1.71 2.04 $0.33 $0.04 NII $(0.34) $(0.44) 11.90 12.13 11.83 11.80 11.46 ex-Markets(1) 2Q23 3Q
Slide 10: U.S. cards and corporate credit overview
U.S. cards and corporate credit overview ($ in B) U.S. Cards Loans Corporate Lending Exposure EOP Loans by Segment EOP Loans by FICO Score(1) By Region By Grade Rating International Exposure Other, 10% Branded 67% 68% 68% Cards ≥ 660 IG 83% 83% 82% 87% 85% 86% International 43% IG / MNCs or U.S. sub
Slide 11: Capital and balance sheet overview
Capital and balance sheet overview ($ in B, except per share data) Risk-based Capital Metrics(1) End of Period Assets 2Q23 1Q24 2Q24 QoQ YoY $2,424 $2,433 $2,406 (1)% (1)% CET1 Capital 154 153 154 297 273 246 Cash (10)% (17)% Standardized RWA 1,153 1,139 1,136 Investments, 507 515 508 (1)% 0% CET1 C
Slide 12: Standardized CET1 Capital ratio overview
Standardized CET1 Capital ratio overview 2Q24 QoQ Standardized CET1 Capital Ratio Walk CET1 Standardized Regulatory Requirement Key drivers resulting in CET1 Capital ratio of 13.6%(1) • Well capitalized today with a CET1 Capital ratio of 13.6%, which is • Strength in earnings includes a 100bps manag
Slide 13: Services results, key metrics and statistics
Services results, key metrics and statistics Financial Results Highlights ($ in MM) 2Q24 % Δ QoQ % Δ YoY • Revenues Up 3% YoY, primarily reflecting strength in Securities Services, as Net Interest Income 2,629 (3)% (3)% well as the impact of continued underlying momentum in TTS Non-Interest Revenue
Slide 14: Markets results, key metrics and statistics
Markets results, key metrics and statistics Financial Results Highlights ($ in MM) 2Q24 % Δ QoQ % Δ YoY • Revenues Up 6% YoY, driven by Equity markets (up 37%), partially offset by a Rates and currencies 2,466 (12)% (11)% (3)% decline in Fixed Income markets Spread products / other fixed income 1,09
Slide 15: Banking results, key metrics and statistics
Banking results, key metrics and statistics Financial Results Highlights ($ in MM) 2Q24 % Δ QoQ % Δ YoY • Revenues Up 38% YoY, driven by growth in Investment Banking and Investment Banking 853 (8)% 60% Corporate Lending Corporate Lending (ex-gain/(loss))(1) 765 (16)% 7% ‒ Investment Banking revenues
Slide 16: Wealth results, key metrics and statistics
Wealth results, key metrics and statistics Financial Results Highlights ($ in MM) 2Q24 % Δ QoQ % Δ YoY • Revenues Up 2% YoY, driven by an 13% increase in NIR from higher Private Bank 611 7% 1% investment fee revenues, partially offset by a 4% decrease in NII from higher Wealth at Work 195 8% (13)% m
Slide 17: U.S. Personal Banking results, key metrics and statistics
U.S. Personal Banking results, key metrics and statistics Financial Results Highlights ($ in MM) 2Q24 % Δ QoQ % Δ YoY • Revenues Up 6% YoY, driven by NII growth of 5% due to loan growth in Branded Cards 2,537 (4)% 8% cards, and higher non-interest revenue due to lower partner payments Retail Service
Slide 18: All Other (Managed Basis) results, key metrics and statistics
All Other (Managed Basis(1)) results, key metrics and statistics Financial Results Highlights ($ in MM) 2Q24 % Δ QoQ % Δ YoY • Revenues Down (22)% YoY, primarily driven by the closed exits and wind- Legacy Franchises (managed basis) 1,727 (6)% (10)% downs and higher funding costs, partially offset b
Slide 19: Full year 2024 guidance and medium-term targets
Full year 2024 guidance and medium-term(1) targets Full Year 2024 Guidance Underlying Drivers of Medium-Term(1) Targets • Full year revenues: ~$80-81 billion • NIR driven by • 4-5% revenue CAGR as we continue to execute in Services, ‒ Fee growth in Services, driven by client wins and deepening of Ma
Slide 20: Forward-looking statements
- Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results and capital and other financial condition may
Slide 21: Appendix
Slide 22: Credit Trends for Branded Cards and Retail Services
Credit Trends for Branded Cards and Retail Services ($ in B) Branded Cards Retail Services 90+DPD NCL EOP 2Q23 1Q24 2Q24 EOP 2Q23 1Q24 2Q24 Loans $103.0 $108.0 $111.8 90+DPD NCL Loans $50.0 $50.8 $51.7 3.82% 3.65% 6.45% 6.32% 3.06% 5.44% 2.72% 2.47% 4.46% 4.53% 2.18% 4.08% 1.68% 3.30% 1.50% 1.50% 2.
Slide 23: Argentina net investment change and financial impacts
• Citi has operated in Argentina for over 100 years and currently serves approximately 1,300 clients, including 700 multinational clients • The primary activities we engage in with clients in Argentina are liquidity management, payments and custody within Services • On April 30, 2024, the Central Ba
Slide 24: Update on Russia exposure and net investment
Update on Russia exposure and net investment Overview • Ended nearly all of the institutional banking services offered in Russia as of March 31, 2023 • Remaining services are only those necessary to fulfill our remaining legal and regulatory obligations • Continue to wind down the consumer and local
Slide 25: 2Q24 Liquidity and investment portfolio metrics
2Q24 Liquidity and investment portfolio metrics ($ in B) Average LCR and Historical Trajectory (30-Day Stress) EOP Available Liquidity Resources(1) LCR 2Q23 2Q24 Ratio 119% 117% $542 $899 $464 $132 Comprised of unencumbered Other Liquidity securities and unused borrowing Resources = $371 capacity $2
Slide 26: Historical average deposit growth
Historical average deposit growth ($ in B) Total CAGR: 4.8% Services CAGR: 5.7% 1,343 1,370 1,334 1,323 1,316 1,361 1,363 1,338 1,315 1,320 1,326 1,305 1,304 1,321 1,310 1,268 110 90 112 106 1,234 116 88 101 100 103 105 102 97 129 128 123 125 114 118 116 111 111 113 1,090 1,115 122 114 115 110 105 1
Slide 27: Tangible common equity reconciliation and Citigroup returns
Tangible common equity reconciliation and Citigroup returns ($ in MM, except per share amounts) Tangible Common Equity and Tangible Book Value Per Share Return on Tangible Common Equity (RoTCE) 2Q24 1Q24 2Q23 2Q24 2Q23 YTD'24 Common Stockholders' Equity $190,210 $188,985 $188,474 Citigroup Net Incom
Slide 28: FX impact
FX impact ($ in MM) Total Citigroup Legacy Franchises Foreign currency (FX) translation impact(1) 2Q24 1Q24 2Q23 QoQ YoY Foreign currency (FX) translation impact(1) 2Q24 1Q24 2Q23 QoQ YoY Total Revenues - as Reported 20,139 21,104 19,436 (5)% 4% Mexico Revenues - as reported 1,640 1,571 1,412 4% 16%
Slide 29: Reconciliation of adjusted results
Reconciliation of adjusted results ($ in MM) Total Citigroup Revenues, Net Interest Income and Expenses 2Q24 2Q24 1Q24 4Q23 3Q23 2Q23 % Δ QoQ % Δ YoY Total Citigroup Revenues - As Reported $20,139 $21,104 $17,440 $20,139 $19,436 (5)% 4% Less: (1) Total Divestiture-Related Impacts on Revenues 33 (12)
Slide 30: All Other (Managed Basis) Trend
All Other (Managed Basis(1)) Trend All Other (Managed Basis) 2Q24 1Q24 2Q23 QoQ% YoY% ($ in millions, except as otherwise noted) Legacy Franchises (Managed Basis) 1,727 1,829 1,925 (6)% (10)% Corporate / Other 253 557 609 (55)% (58)% Total revenues 1,980 2,386 2,534 (17)% (22)% Total operating expen
Slide 31: Reconciliation of adjusted results (cont.)
Reconciliation of adjusted results (cont.) ($ in MM) All Other(1) 2Q24 1Q24 2Q23 % Δ QoQ % Δ YoY All Other Revenues, Managed Basis $1,980 $2,386 $2,534 (17)% (22)% Add: All Other Divestiture-related Impact on Revenue(2) $33 $(12) $(6) NM NM All Other Revenues, (U.S. GAAP) $2,013 $2,374 $2,528 (15)%
Slide 32: Glossary
Glossary ACL: Allowance for Credit Losses CET1: Common Equity Tier 1 GSIB: Global Systemically Important NM: Not Meaningful Banks ACLL: Allowance for Credit Losses on CoC: Cost of Credit NNA: Net New Assets Loans HQLA: High Quality Liquid Assets CSO: Common Shares Outstanding OCC: Office of the Comp
Slide 33: Footnotes
Footnotes Slide 2 1) Represents consumer banking businesses across 14 markets in Asia, Europe, the Middle East and Mexico as part of its strategic refresh. Slide 3 1) Service material legal entities (MLEs) are excluded from this illustration. 2) The U.S.- 3) Represents MLEs as defined by the 165(d)
Slide 34: Footnotes (cont.)
Footnotes (cont.) Slide 6 1) Allowance for Credit Losses (ACL) Build / (Release) and Other provisions includes a net ACL build of approximately $68 million related to loans and unfunded lending commitments as well as other provisions of approximately $125 million relating to held-to-maturity (HTM) d
Slide 35: Footnotes (cont.)
Footnotes (cont.) Slide 9 1) NII excluding Markets is a non-GAAP financial measure. 2) Gross Loan Yield is defined as gross interest revenue earned on loans divided by average loans. 3) Cost of Interest- -bearing deposits. Slide 10 1) FICO scores are updated as they become available. Citi adjusted i
Slide 36: Footnotes (cont.)
Footnotes (cont.) Slide 13 1) Allowance for Credit Losses (ACL) Build / (Release) and Other provisions includes a net ACL release of approximately $(98) million related to loans and unfunded lending commitments as well as other provisions of approximately $71 million relating to held-to-maturity (HT
Slide 37: Footnotes (cont.)
Footnotes (cont.) Slide 15 1) Credit derivatives are used to economically hedge a portion of the Corporate Lending portfolio that includes both accrual loans and loans at fair value. Gain / (loss) on loan hedges includes the mark- to-market on the credit derivatives and the mark-to-market on the loa
Slide 38: Footnotes (cont.)
Footnotes (cont.) Slide 17 1) Allowance for Credit Losses (ACL) Build / (Release) and Other provisions includes a net ACL build of approximately $382 million related to loans and unfunded lending commitments as well as other provisions of approximately $2 million relating to benefits and claims, and
Slide 39: Footnotes (cont.)
Footnotes (cont.) Slide 18 1) All Other (managed basis) reflects results on a managed basis, which excludes divestiture-related impacts, for all periods, related to Citi's divestitures of its Asia consumer banking businesses and the planned divestiture of Mexico consumer banking and small business a
Slide 40: Footnotes (cont.)
Footnotes (cont.) Slide 19 1) Defined as 2026. 2) Full year 2024 NII ex-Markets is a forward-looking non-GAAP financial measure. From time to time, management may discuss forward-looking non-GAAP financial measures, such as forward- looking estimates or targets for revenue, expenses and RoTCE. We ar
Slide 41: Footnotes (cont.)
Footnotes (cont.) Slide 27 1) Net income to common for All Other (Managed Basis) is reduced by preferred dividends of $242 million in 2Q24. 2) ardized risk-weighted assets, the global systemically important banks (GSIB) surcharge, a simulation of TCE in severe stress environments, as well as a lever
Slide 42: Footnotes (cont.)
Footnotes (cont.) Slide 30 1) All Other (managed basis) reflects results on a managed basis, which excludes divestiture-related impacts, for all periods, related to Citi's divestitures of its Asia consumer banking businesses and the planned divestiture of Mexico consumer banking and small business a