Slide 1: Third Quarter 2017 Earnings Review
Citi | Investor Relations Third Quarter 2017 Earnings Review October 12, 2017
Slide 2: Overview
Overview 3Q’17 showed strong results and balanced performance across the franchise – Revenue growth and positive operating leverage across all regions in Consumer – Strong Investment Banking results and continued momentum in ICG accrual businesses – Broad based loan growth across regions and product
Slide 3: Citigroup – Summary Financial Results
Citigroup – Summary Financial Results ($MM, except EPS) 3Q'17 2Q'17 %r 3Q'16 %r YTD'17 %r Revenues $18,173 $17,901 2% $17,760 2% $54,194 3% Operating Expenses 10,171 10,506 (3)% 10,404 (2)% 31,154 (0)% Efficiency Ratio 56% 59% 59% 57% Net Credit Losses 1,777 1,710 4% 1,525 17% 5,196 7% Net LLR Build
Slide 4: North America Consumer Banking
North America Consumer Banking ($MM) 3Q'17 QoQ %r YoY %r YTD'17 %r • Revenues Revenues $5,194 5% 1% $15,082 3% – Retail Banking: Excluding mortgage, Retail Banking 1,363 6% 1% 3,910 (1)% revenues up 12% YoY driven by Mortgage 185 (1)% (39)% 553 (35)% continued growth in loans and AUMs as Retail ex
Slide 5: International Consumer Banking
International Consumer Banking (Constant $MM) 3Q'17 QoQ %r YoY %r YTD'17 %r • Revenues Revenues $3,239 3% 5% $9,203 4% – Latin America up 4% YoY reflecting Latin America 1,370 3% 4% 3,811 5% growth in loans and deposit volumes (1) Asia 1,869 3% 5% 5,392 4% – Asia up 5% YoY driven by improvement
Slide 6: Global Consumer Banking – Credit Trends
Global Consumer Banking – Credit Trends (EOP Loans in Constant $B) NCL 90+ DPD Global Consumer Banking North America EOP 3Q'16 2Q'17 3Q'17 EOP 3Q'16 2Q'17 3Q'17 Loans $290.6 $298.8 $300.8 Loans $180.0 $186.4 $187.9 2.63% 2.58% 2.63% 2.26% 2.32% 2.34% 2.07% 2.42% 2.05% 2.04% 2.02% 1.87% 2.10% 2.24% 2
Slide 7: Institutional Clients Group
Institutional Clients Group ($MM) 3Q'17 QoQ %r YoY %r YTD'17 %r • Revenues Product Revenues CHECK – Total Banking (1): Up 11% YoY Total Banking $4,662 (3)% 11% $13,945 13% driven by continued strong - Treasury & Trade Solutions 2,144 4% 8% 6,284 7% momentum and solid performance - Investment Banki
Slide 8: Corporate / Other
Corporate / Other ($MM) 3Q'17 QoQ %r YoY %r YTD'17 %r • Revenues Revenues $509 (22)% (55)% $2,339 (45)% – Down YoY due to legacy asset run-off and divestiture activity, Expenses 822 (17)% (36)% 2,929 (24)% as well as the impact of hedging activities Credit Costs (50) 62% NM (130) NM EBT (263) (28)%
Slide 9: Citigroup – Net Interest Revenue & Margin
Citigroup – Net Interest Revenue & Margin (NIR in Constant $B) Core Accrual Trading-Related Legacy Assets Citigroup NIM 4.00% Core Accrual NIM 3.55% 3.53% 3.49% 3.45% 3.48% 3.44% 3.45% 3.50% 2.92% 2.86% 2.86% 2.79% 2.74% 2.72% 2.72% 3.00% 3Q’17 3Q’17 QoQ% r YoY% r $11.55 $11.44 2% (1)% $11.31 $11.25
Slide 10: Citigroup – Key Capital Metrics
Citigroup – Key Capital Metrics Common Equity Tier 1 Capital Ratio(1)(2) Supplementary Leverage Ratio(1)(2) Tangible Book Value / Share(1)(2) 12.8% 13.1% 13.0% 14.0% 12.3% 12.5% 12.6% 12.6% 12.1% 90.00 11.7% 12.0% 10.0% 80.00 7.4% 7.5% 7.4% 7.2% 7.3% 7.2% 6.9% 7.1% 7.1% 8.0% 70.00 6.0% 4.0% 60.00 $6
Slide 11: Conclusions
Conclusions Third quarter results showed continued momentum across the franchise – Revenue growth in both Consumer and Institutional businesses – Continued expense discipline with positive operating leverage – Delivered 13% YoY EPS growth YTD’17, including impact of common share buybacks Optimizing
Slide 12: Forward-looking statements
Certain statements in this presentation are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances.
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Slide 14: Appendix
Appendix Table of Contents 15. LTM’17 Returns Analysis 23. Capital Management & DTA Utilization (YTD) 16. Estimated FX Impact on Key P&L Metrics 24. Equity & CET1 Capital Drivers (YoY) 17. Loan Loss Reserve Build / (Release) 25. Equity & CET1 Capital Drivers (QoQ) 18. Consumer Credit 26. Common Equi
Slide 15: LTM’17 Returns Analysis
LTM’17 Returns Analysis ($B) Average Average (2) Net Income GAAP ROA Allocated to Common Assets (bps) TCE(3) RoTCE GCB $4.5 $414 109 $36 12.6% ICG 11.2 1,339 83 82 13.6% (1) Corp / Other (1.2) 100 (3) 64 (1.9)% (1) Citigroup $14.5 $1,853 85 $182 7.9% Disallowed DTA(4) 28 - 28 - Business Results $14.
Slide 16: Estimated FX Impact on Key P&L Metrics
Estimated FX(1) Impact on Key P&L Metrics Year-over-Year Impact ($B) 3Q’17 2Q’17 1Q’17 4Q’16 3Q’16 Revenues $0.1 $(0.1) $(0.2) $(0.4) $(0.2) Expenses 0.1 (0.1) (0.1) (0.3) (0.2) Cost of Credit 0.0 (0.0) (0.0) (0.1) (0.0) Earnings Before Taxes $0.0 $(0.0) $(0.0) $0.0 $0.0 16 Note: Totals may not sum
Slide 17: Loan Loss Reserve Build / (Release)
Loan Loss Reserve Build / (Release)(1) ($MM) $r 3Q’17 2Q’17 3Q’16 QoQ YoY NA Consumer $460 $103 $408 $357 $52 International Consumer 21 21 25 0 (4) Global Consumer $481 $124 $433 $357 $48 ICG (208) 16 (135) (224) (73) Corp / Other (79) (156) (122) 77 43 Citigroup $194 $(16) $176 $210 $18 17 Note: To
Slide 18: Consumer Credit
Consumer Credit (Constant $B) 3Q'17 Loans Growth Growth 90+ DPD Ratio NCL Ratio ($B) (%) YoY % QoQ % 3Q'17 2Q'17 3Q'16 3Q'17 2Q'17 3Q'16 Korea 18.8 6.2% (2.2)% (0.7)% 0.2% 0.2% 0.2% 0.2% 0.3% 0.2% Singapore 12.0 4.0% (7.5)% (2.3)% 0.1% 0.1% 0.1% 0.4% 0.4% 0.3% Australia 10.9 3.6% 4.1% (1.5)% 0.7% 0.
Slide 19: Regional Credit Portfolio
Regional Credit Portfolio (3Q’17 EOP in $B) Geographic Loan Distribution Loan Composition $199 Commercial Banking Mexico Korea 6% 5% Mortgages 9% Singapore 4% 25% Personal & Other Hong Kong 4% 2% Cards GCB Taiwan 3% $102 North America Other EM 62% 26% 8% 68% 31% Developed Asia 4% 24% 20% DM EM Hong
Slide 20: Consumer Drivers
Consumer Drivers GCB Digital Metrics(1) 3Q'17 2Q'17 1Q'17 4Q'16 3Q'16 YoY QoQ (MM) North America: Active Digital Customers 17.0 16.5 15.7 15.3 15.1 13% 3% Active Mobile Customers 9.0 8.6 8.0 7.8 7.4 22% 4% International: Active Digital Customers 5.5 5.3 5.2 5.2 4.8 14% 3% Active Mobile Customers 3.1
Slide 21: Institutional Drivers
Institutional Drivers ICG 3Q'17 2Q'17 1Q'17 4Q'16 3Q'16 YoY QoQ (Constant $B) EOP Deposits: 640 627 628 627 622 3% 2% NA 290 280 287 283 276 5% 4% EMEA 172 172 168 173 173 (1)% (0)% Latin America 26 27 27 27 27 (3)% (5)% Asia 152 147 146 144 146 4% 3% Average Loans: 321 315 306 309 308 4% 2% NA 152
Slide 22: Preferred Stock Dividend Schedule
Preferred Stock Dividend Schedule ($MM) 2016 2017 2018 1Q $210 $301 $272 2Q 322 320 320 3Q 225 272 272 4Q 320 320 320 Total $1,077 $1,213 $1,184 22 Note: Totals may not sum due to rounding. Based on outstanding preferred stock as of October 12, 2017.
Slide 23: Capital Management & DTA Utilization (YTD)
Capital Management & DTA Utilization (YTD) ($B) CET1 Capital and Ratio(1) DTA Balance Drivers $12.1 $1.3 $1.4 $153.5 $149.5 $(10.8) 12.6% 13.0% $(1.2)B $46.7 $0.1 $45.5 $(1.3) (3,4) (4) 4Q'16 Net DTA Common OCI & 3Q'17 4Q'16 Earnings OCI & 3Q'17 Income Share Other (2) Driven Other Repurchases & Divi
Slide 24: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 3Q’16 $212.3 $184.4 $155.1 12.6% Impact of: Net Income 15.7 15.7 15.7 128 Preferred Stock Dividends (1.2) (1.2) (1.2) (10) Common Share Repurchases
Slide 25: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 2Q’17 $210.8 $183.4 $155.2 13.1% Impact of: Net Income 4.1 4.1 4.1 35 Preferred Stock Dividends (0.3) (0.3) (0.3) (2) Common Share Repurchases & (6.
Slide 26: Common Equity Tier 1 Capital Ratio and Components
Common Equity Tier 1 Capital Ratio and Components ($MM) Common Equity Tier 1 Capital Ratio and Components(1) 9/30/2017(2) 6/30/2017 3/31/2017(3) 12/31/2016 9/30/2016 (4) Citigroup Common Stockholders' Equity $208,565 $210,950 $208,907 $206,051 $212,506 Add: Qualifying noncontrolling interests 144 14
Slide 27: Supplementary Leverage Ratio; TCE Reconciliation
Supplementary Leverage Ratio; TCE Reconciliation ($MM, except per share amounts) Supplementary Leverage Ratio and Components(1) 3Q'17(2) 2Q'17 1Q'17(3) 4Q'16 3Q'16 Common Equity Tier 1 Capital (CET1) $153,535 $155,174 $152,664 $149,516 $155,132 (4) Additional Tier 1 Capital (AT1) 19,322 19,955 19,79
Slide 28: FX Impact and Other Reconciliations
FX Impact and Other Reconciliations ($MM, except balance sheet items in $B) Citigroup 3Q'17 2Q'17 3Q'16 YTD'17 YTD'16 International Consumer Banking 3Q'17 2Q'17 3Q'16 YTD'17 YTD'16 Reported EOP Assets $1,889 $1,864 $1,818 $1,889 $1,818 Reported Revenues $3,239 $3,091 $3,003 $9,203 $8,852 Impact of F