Citigroup, Inc. · NYSE:C
Citigroup — Investor Presentation (December 2009)
20 slides from Citigroup's investor presentation, Dec 14, 2009
Slide 1: Repaying TARP and Other Capital Actions
December 14, 2009 Repaying TARP and Other Capital Actions
Slide 2: Overview
Overview Repaying $20 billion of TARP trust preferred securities Agreement reached to terminate loss-sharing agreement Cancelling $1.8 billion of $7.1 billion of trust preferred securities held by the U.S. government as consideration for agreement Citigroup will cease being a beneficiary of TARP "Ex
Slide 3: Equity Transactions
Equity Transactions Amount $3.5 billion Security Tangible equity units, consisting of ~$2.8 billion of prepaid stock purchase contracts and ~$0.7 billion of junior subordinated amortizing notes Tenor 3 years Payments 7.5% - 8.0% Conversion Premium 20% - 25% Accounting Stock purchase contract to be c
Slide 4: Loss-Sharing Agreement with USG
Loss-Sharing Agreement with USG Loss-sharing agreement with U.S. government covers ~$250 billion of assets remaining as of 3Q'09 Terminating agreement and canceling $1.8 billion of the $7.1 billion trust preferred securities held by U.S. government in consideration for agreement Impact of exiting ag
Slide 5: 3Q'09 Pro-forma Capital Impact
3Q'09 Pro-forma Capital Impact Loss from debt extinguishment of $8B pre-tax ($5.1B after-tax) flows through the income statement. Assumes 12/11/09 share price of $3.95 as new issue price. For issuance to employees, assumes receipt of shareholder approval in 2Q 2010. Does not reflect common shares to
Slide 6: Pro-forma Capital Ratios vs. Peers
Pro-forma Capital Ratios vs. Peers Tier 1 Capital Ratio Tier 1 Capital Ratio 3Q'09 Tier 1 Common Ratio Tier 1 Common Ratio Source: Company filings.
Slide 7: Citigroup Summary Financials
Citigroup Summary Financials ($B, except EPS) Nine Months 2009 %? Net Revenues $74.9 $46.0 63% Operating Expenses 35.5 44.6 (20) Credit Losses, Claims & Benefits 32.1 22.0 46 Net Income 6.0 (10.4) NM Diluted EPS $(0.19) $(2.17) 91% Total Assets $1,889 $2,050 (8)% Total Deposits 833 780 7 Common Equi
Slide 8: Citigroup Reorganization
Citigroup Reorganization Global bank for businesses and consumers Unmatched global network and emerging markets footprint Deep and diversified business portfolio across consumer, services, and institutional revenue pools Non-core businesses and assets Includes attractive franchises Focus on reducing
Slide 9: Citicorp and Citi Holdings
Citicorp and Citi Holdings Brokerage & Asset Management (1) 14.7 7.0 59 60 Local Consumer Lending 15.0 (7.7) 376 30 Special Asset Pool (3.8) (5.1) 182 -- Citi Holdings $25.9 $(5.8) $617 $90 Regional Consumer Banking 17.1 1.4 205 285 Securities & Banking 24.2 8.8 746 121 Transaction Services 7.3 2.8
Slide 10: Citicorp - Unparalleled Global Network
Citicorp - Unparalleled Global Network Physical infrastructure Serving clients/ no physical infrastructure Source: IMF (CHART) $49B $1,014B $728B (CHART) 2006-2012E GDP CAGR(1)
Slide 11: Citicorp - Institutional Clients Group
Citicorp - Institutional Clients Group Physical infrastructure Serving clients/ no physical infrastructure Trading floor Global network - presence in over 100 markets Market leader in Emerging Markets Trading floors in 75 countries Leading global corporate client franchise
Slide 12: Citicorp - Institutional Clients Group: Transaction Services and Securities & Banking
Asset light, high return business driven by fees & deposits Low volatility, annuity-type revenues Revenue from >100 countries Top 3,000 clients: >95% of revenues Scale business underpinned by technology and infrastructure Transaction Services (CHART) 9 Months 2004 - 9 Months 2009 CAGR (1) (1) Includ
Slide 13: Citicorp - Regional Consumer Banking
Citicorp - Regional Consumer Banking Note: Managed metrics are non-GAAP measures. Please see slide 18 for additional information on these measures. Asia (CHART) (CHART) (CHART) 9 Months '09 Managed Revenues $22.0B 3Q'09 Avg. Managed Loans $190B 22% 48% 5% 25% 34% 46% 5% 15% 33% 50% 4% 13% EMEA Latin
Slide 14: Citi Holdings
Citi Holdings (CHART) EOP Assets ($B) $(281)B Further reduction of $25B from Nikko divestitures in 4Q'09 Businesses and assets not core to our strategy Main drivers of asset reduction: run-off and dispositions No legal separation from Citigroup
Slide 15: Citigroup Assets & Structural Liquidity
(CHART) (CHART) Citigroup Assets & Structural Liquidity (CHART) Structural Liquidity as a % of Assets. Note: Totals may not sum due to rounding. 1.94 2.05 1.82 1.85 1.89 (CHART) 1.28 1.30 1.24 1.31 1.35 Assets Structural Liquidity Citicorp Citi Holdings Corp/Other Cash & Deposits w/Banks as a % of A
Slide 16: Summary
Summary Repaying $20 billion TARP trust preferred securities Exiting loss-sharing agreement No longer a TARP Exceptional Financial Assistance beneficiary beginning in 2010 U.S. Treasury to fully exit equity stake in 2010 Focused on execution of Citi strategy Leveraging core historical strengths and
Slide 17: Non-GAAP Financial Measures: Tangible Common Equity
Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Tangible common equity (TCE), as defined by Citigroup, represents Common equity less Goodwill and Intangible assets (excluding MSRs) net of the related deferred tax liabilities. TCE and the TCE Ratio are used and relied on by
Slide 18: Non-GAAP Financial Measures: Tier 1 Common
Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Tier 1 Common and the Tier 1 Common Ratio are used and relied on by the banking regulators as a measure of capital adequacy, but are considered non-GAAP financial measures pursuant to the U.S. Securities and Exchange Commissio
Slide 19: Non-GAAP Financial Measures: Managed Basis
Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Managed-basis (Managed) presentations detail certain non-GAAP financial measures. Managed presentations (applicable only to North American credit card operations, as securitizations are not done in any other regions) include r
Slide 20: Forward-looking statements and offering notice
Certain statements in this document are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ mate