Slide 1: Earnings Results Presentation Second Quarter 2022
Earnings Results Presentation Second Quarter 2022 July 15, 2022
Slide 2: Second Quarter Results Snapshot
Second Quarter Results Snapshot Revenues Net Income EPS 2Q22 $19.6 billion 2Q22 $4.5 billion 2Q22 $2.19 vs. 2Q21 11% vs. 2Q21 (27)% vs. 2Q21 (23)% RoTCE(1) CET1 Capital Ratio(2) Tangible Book Value Per Share(3) 2Q22 11.2% 2Q22 11.9% 2Q22 $80.25 2Q21 15.2% 2Q21 11.8% vs. 2Q21 3% Second Quarter Key Hi
Slide 3: Progress Against Priorities in 2Q22
Progress Against Priorities in 2Q22 Transformation Strategic Execution Culture and Talent ✓ AML Consent Order lifted by the OCC Executing on our strategy & vision: ✓ Refreshing and augmenting with external talent, ~2/3 of open roles YTD filled by ✓ All programs executing on 2022 deliverables ✓ All T
Slide 4: Financial Results Overview
Financial Results Overview Financial Results Financial Overview Highlights ($ in MM, except EPS) 2Q22 % Δ QoQ % Δ YoY YTD'22 % Δ YoY • Revenues – Up 11% YoY, largely driven by rates, TTS fees, Markets and continued momentum in U.S. Net Interest Income $11,964 10% 14% $22,835 9% cards partially offse
Slide 5: 2Q22 YoY Expense Walk
2Q22 YoY Expense Walk ($ in B) +8% +8% Guidance for FY $12.4 0% $12.4 ~1% 2022 ~2% ~2% ▪ 5-6% excl. • Non-consent 2022 ~3% • Transactional order risk & divestiture $11.5 • Client experience, costs in Markets controls impacts(1) and cards product and platform • Merit / Inflation • Improving Risk & ▪
Slide 6: Net Interest Income, Average Loans and Deposits
Net Interest Income, Average Loans and Deposits ($ in B) Net Interest Income 2.24% 2Q22 2Q22 1.97% 1.99% 1.98% 2.05% Citigroup NIM QoQ r YoY r $11.96 $10.69 $10.82 $10.87 $1.09 $1.49 $10.48 1.38 Markets(1) 1.27 1.25 1.11 $0.27 $0.00 1.38 9.43 9.57 9.76 10.58 $0.82 $1.48 Ex-Markets 9.10 2Q21 3Q21 4Q2
Slide 7: Capital and Balance Sheet
Capital and Balance Sheet ($ in B, except per share data) Risk-based Capital Metrics(1) End of Period Assets 2Q21 1Q22 2Q22 CET1 Capital $150 $144 $145 $2,381 $2,328 $2,394 Cash Standardized RWAs 1,277 1,263 1,220 299 272 284 CET1 Capital Ratio - Standardized 11.8% 11.4% 11.9% Investments, net 515 5
Slide 8: Standardized CET1 Ratio Overview
Standardized CET1 Ratio Overview 2Q22 QoQ Standardized CET1 Ratio Walk CET1 Standardized Regulatory Minimum and Target Drivers of CET1 increasing to ~11.9% • Well capitalized today with a CET1 ratio of ~11.9%, 140bps above the regulatory requirement • Strength in earnings and capital distributions •
Slide 9: Update on Russia
Update on Russia Overview • Considering a full range of possibilities to exit our Russia consumer and commercial banking businesses, including portfolio sales • Russia exposure increased roughly $500 million from last quarter: ꟷ Exposure reduction of $3.1 billion, in local currency terms ꟷ Exposure
Slide 10: Institutional Clients Group Results
Institutional Clients Group Results Institutional Clients Group Results Institutional Clients Group Highlights ($ in MM) 2Q22 % Δ QoQ % Δ YoY • Revenues – Up 20% YoY (incl. gain/(loss) on loan hedges), primarily Net Interest Income $4,520 19% 20% driven by continued momentum in Services, and active
Slide 11: ICG Revenue Items and Selected Business Drivers and Statistics
ICG Revenue Items and Selected Business Drivers and Statistics Revenues Highlights ($ in MM) 2Q22 % Δ QoQ % Δ YoY Services Net Interest Income $2,026 22% 42% Non-interest revenue 1,003 8% 17% • Treasury and Trade Solutions revenues were up 33% YoY, driven by Treasury and Trade Solutions Revenues 3,0
Slide 12: Personal Banking & Wealth Management Results
Personal Banking & Wealth Management Results Personal Banking & Wealth Management Results Personal Banking & Wealth Management Highlights ($ in MM) 2Q22 % Δ QoQ % Δ YoY • Revenues – Up 6% YoY, as growth in net interest income more than offset lower non-interest revenue driven by partner payments in
Slide 13: PBWM Revenues Items and Selected Business Drivers and Statistics
PBWM Revenues Items and Selected Business Drivers and Statistics Revenues Highlights ($ in MM) 2Q22 % Δ QoQ % Δ YoY • Branded Cards revenues were up 10% YoY, primarily driven by higher Branded Cards $2,168 4% 10% interest on higher loan balances Retail Services 1,300 - 7% Retail Banking 656 10% 6% •
Slide 14: Legacy Franchises Results
Legacy Franchises Results Legacy Franchises Results Legacy Franchises Highlights ($ in MM) 2Q22 % Δ QoQ % Δ YoY • Revenues – Down 15% YoY, primarily driven by the Australia Net Interest Income $1,474 (2)% (9)% consumer sale, Korea wind down, as well as muted investment activity in Asia Non-Interest
Slide 15: Corporate / Other Results
Corporate / Other Results Corporate / Other Results Corporate / Other Highlights ($ in MM, unless otherwise noted) 2Q22 % Δ QoQ % Δ YoY • Revenues – Up 12% YoY, primarily driven by higher net revenues Net Interest Income $401 NM NM from the investment portfolio Non-Interest Revenue (146) NM NM Total
Slide 16: Maintaining 2022 Guidance For Revenue and Expenses
Maintaining 2022 Guidance For Revenue and Expenses Revenue Expenses ($ in B) ($ in B) FY 2022 FY 2022 Low single digit growth in ~7-8% total revenue, excluding Ex-2021 & 2022 divestiture 2022 divestiture impacts(2) impacts(3) $71.9 Current vs. 2021 FY 2022 • Modest Loan Growth ~5-6% growth • Modest
Slide 17: Forward-looking statements disclaimer
Certain statements in this presentation are “forward-looking statements” within the meaning of the rules and regulations of the Private Securities Litigation and Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumst
Slide 18: Citi
CItI
Slide 19: Estimated Timelines for Signed Exit Markets
Estimated Timelines for Signed Exit Markets 2021 2022 2023 Buyer Country 2H21 1H22 2H22 1H23 2H23 NAB Australia Closed Signed Union Bank Philippines Closing Signed Thailand Closing Signed Malaysia Closing Signed UOB Indonesia Closing Indonesia moved from 2H’22 Signed Vietnam moved from 4Q22 Vietnam
Slide 20: Exit Markets Contribution
Exit Markets Contribution ($ in MM) Exit Markets Contribution To P&L and Balance Sheet Signed Exit Markets & Korea (1) Not Yet Signed Exit Markets (2) 1Q22 2Q22 1Q22 2Q22 Revenues $664 $625 $1,310 $1,362 Expenses 688 616 1,000 1,183 Credit Costs 31 (71) 104 142 EBT (55) 80 206 37 Allocated Average T
Slide 21: Citigroup Returns
Citigroup Returns ($ in $B) 2Q22 Returns 1H22 Returns Average Average Net Income Allocated Net Income Allocated to Common TCE(2) RoTCE(3) to Common TCE(2) RoTCE(3) ICG $4.0 $96 16.6% ICG $6.6 $96 13.9% PBWM 0.6 32 6.8% PBWM 2.4 32 15.0% Legacy Franchises (0.0) 12 (0.6)% Legacy Franchises (0.4) 12 (6
Slide 22: Branded Cards and Retail Services – Credit Trends
Branded Cards and Retail Services – Credit Trends ($ in $B) Branded Cards Retail Services NCL 90+ DPD NCL 90+ DPD EOP 2Q21 1Q22 2Q22 EOP 2Q21 1Q22 2Q22 Loans $82.1 $85.9 $91.6 Loans $42.7 $44.1 $45.8 4.51% 3.45% 3.17% 3.00% 3.09% 2.84% 2.60% 2.43% 2.36% 2.23% 2.31% 2.10% 1.73% 1.46% 1.50% 1.33% 1.25
Slide 23: Regional Credit Portfolio
Regional Credit Portfolio (2Q22 EOP in $B) ICG PBWM Legacy Franchises Signed Exit Markets EOP Geographic Loan Distribution Hong Kong 4% Loans(1): ~$19B Brazil 4% Singapore 6% North Singapore 3% Hong Kong 6% Emerging EMEA Mexico 3% 6% America Developed China 2% 8% EMEA 19% EMEA 4% Korea China 8% 28%
Slide 24: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($ in B, except basis points (bps)) CET1 Common Tangible CET1 Capital Equity Common Equity(1) Capital(2) Ratio(2) (bps) 1Q22 $178.7 $153.5 $143.7 11.4% Impact of: CECL Transition Provision(3) N/A N/A - - Net Income 4.5 4.5 4.5 36 Preferred Stock Dividends (0.2) (0
Slide 25: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($ in B, except basis points (bps)) CET1 Common Tangible CET1 Capital Equity Common Equity(1) Capital(2) Ratio(2) (bps) 2Q21 $184.2 $157.8 $150.4 11.8% Impact of: CECL Transition Provision(3) N/A N/A (1.5) (12) Net Income 16.7 16.7 16.7 131 Preferred Stock Dividen
Slide 26: Reconciliation of Adjusted Results
Reconciliation of Adjusted Results Citigroup Exit Markets ($ in MM) 1H2022 1H2021 YoY ($ in MM) 2Q22 1Q22 Reported Expenses $25,558 $22,884 12% Signed Exit Markets & Korea Revenues $703 $617 Less: Less: (1) Impact of costs related to Asia Divestitures (3) 531 - NM Impact of Gain / (Loss) on sale rel
Slide 27: Tangible Common Equity Reconciliation
Tangible Common Equity Reconciliation ($ in MM, except per share amounts) Tangible Common Equity and Tangible Book Value Per Share 2Q22 1Q22 4Q21 Common Stockholders' Equity $180,019 $178,714 $182,977 Less: Goodwill 19,597 19,865 21,299 Intangible Assets (other than Mortgage Servicing Rights) 3,926
Slide 28: FX Reconciliations
FX Reconciliations ($ in MM) Total Citigroup Foreign currency (FX) translation im pact (1) 2Q22 1Q22 2Q21 QoQ YoY Total Revenue- as Reported 19,638 19,186 17,753 2% 11% Impact of FX translation - (114) (369) - - Total revenues - Ex-FX 19,638 19,072 17,384 3% 13% Total operating expenses - as reporte
Slide 29: Footnotes
Footnotes Slide 2 1) Return on Tangible Common Equity (RoTCE) is a non-GAAP financial measure. RoTCE represents annualized net income available to common shareholders as a percentage of average TCE. For a reconciliation to reported results, please refer to Slide 21. 2) 2Q22 is Preliminary. Citigroup
Slide 30: Footnotes continued
Footnotes continued Slide 6 1) Markets is defined as Fixed Income Markets and Equity Markets. 2) Gross Loan Yield: Gross interest revenue earned on loans divided by average loans. 3) Cost of Interest-Bearing Deposits: Interest expense associated with Citi’s deposits divided by average interest-beari
Slide 31: Footnotes continued
Footnotes continued Slide 10 1) Allowance for Credit Losses (ACL) Build / (Release) and Other provisions includes a net ACL release of $(245) million, including provision / (release) for unfunded lending commitments, and other provisions of approximately $25 million relating to held-to-maturity (HTM
Slide 32: Footnotes continued
Footnotes continued Slide 12 1) Allowance for Credit Losses (ACL) Build / (Release) and Other provisions includes a net ACL build of $651 million, including provision / (release) for unfunded lending commitments, and other provisions of approximately $5 million which relate to policyholder benefits
Slide 33: Footnotes continued
Footnotes continued Slide 16 1) Markets represents Fixed Income Markets and Equity Markets. 2) Excludes any potential impacts in 2022 associated with divestitures of 13 exit markets in Asia or Mexico consumer, small business and middle-market banking operations. Also excludes the impact of costs lar
Slide 34: Footnotes continued
Footnotes continued Slide 24 1) For additional information, please refer to Slide 27. 2) For the composition of Citigroup’s CET1 Capital, please see Appendix B of the 2Q22 earnings press release included as Exhibit 99.1 to Citigroup’s Current Report on Form 8-K filed with the SEC on July 15, 2022. 3
Slide 35: Footnotes continued
Footnotes continued Slide 26 1) Reflects the impact of an increase in the loss on sale of approximately $(118) million in 1Q22 and a reduction of loss on sale of approximately $20 million in 2Q22 related to the sale of Australia consumer business. 2) Reflects a cost of credit reclass of approximatel