Slide 1: First Quarter 2018 Earnings Review
Citi | Investor Relations First Quarter 2018 Earnings Review April 13, 2018
Slide 2: Overview
Overview 1Q’18 showed strong operating results and balanced franchise performance – Revenue growth in both Cards and Retail Banking in all regions – Continued momentum in ICG accrual businesses and strong results in Equities – Broad based loan growth across Consumer and Institutional franchises Prog
Slide 3: Citigroup – Summary Financial Results
Citigroup – Summary Financial Results(1) ($MM, except EPS) 1Q'18 4Q'17 %r 1Q'17 %r Revenues $18,872 $17,504 8% $18,366 3% Operating Expenses 10,925 10,332 6% 10,723 2% Efficiency Ratio 57.9% 59.0% 58.4% Operating Margin 7,947 7,172 11% 7,643 4% Net Credit Losses 1,867 1,880 (1)% 1,709 9% (2) Net LLR
Slide 4: Global Consumer Banking
Global Consumer Banking(1) (Constant $MM) %r %r 1Q'18 4Q'17 1Q'17 • Revenues Revenues $8,433 $8,518 (1)% $7,985 6% – Up 6% YoY driven by growth North America 5,157 5,182 (0)% 4,945 4% across products in both North International 3,276 3,336 (2)% 3,040 8% America and International Expenses 4,681 4
Slide 5: North America Consumer Banking
North America Consumer Banking(1) ($MM) %r %r 1Q'18 4Q'17 1Q'17 • Revenues Revenues $5,157 $5,182 (0)% $4,945 4% – Retail Banking: Excluding mortgage, Retail Banking 1,307 1,349 (3)% 1,257 4% revenues up 8% YoY driven by Mortgage 148 197 (25)% 181 (18)% continued growth in deposit margins, as Reta
Slide 6: International Consumer Banking
International Consumer Banking (Constant $MM) 1Q'18 4Q'17 %r 1Q'17 %r • Revenues Revenues $3,276 $3,336 (2)% $3,040 8% – Latin America up 8% YoY reflecting Latin America 1,347 1,401 (4)% 1,242 8% growth in cards as well as growth in retail - Retail Banking 966 1,001 (4)% 905 7% loans, deposits and
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'17 4Q'17 1Q'18 EOP 1Q'17 4Q'17 1Q'18 Loans $295.1 $313.3 $304.0 Loans $181.9 $195.7 $187.1 2.77% 2.26% 2.15% 2.30% 2.34% 2.42% 2.63% 2.58% 2.63% 2.48% 2.02% 1.87% 2.10% 2.24% 2
Slide 8: Institutional Clients Group
Institutional Clients Group(1) ($MM) 1Q'18 4Q'17 %r 1Q'17 %r • Revenues Product Revenues – Total Banking(2): Up 6% YoY driven Total Banking $4,823 $4,818 0% $4,557 6% by continued strong momentum and - Treasury & Trade Solutions 2,268 2,236 1% 2,108 8% solid performance in TTS, Private - Investmen
Slide 9: Corporate / Other
Corporate / Other(1) ($MM) 1Q'18 4Q'17 %r 1Q'17 %r • Revenues Revenues $591 $751 (21)% $1,201 (51)% – Down YoY driven by wind-down Expenses 741 of legacy assets 857 (14)% 1,134 (35)% Credit Costs (7) (45) 84% 52 NM • Expenses EBT (143) (61) NM 15 NM – Down YoY reflecting the wind- down of legacy ass
Slide 10: 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 3.51% 3.47% 3.48% 3.54% 3.46% 3.50% 2.76% 2.75% 2.74% 3.00%1Q’18 1Q’18 2.65% 2.64% QoQ% r YoY% r $11.53 (2)% 1% $11.09 $11.34 0.31 $11.39 $11.17 2.50% (7)% (
Slide 11: 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% 12.4% 90 12.1% 12.0% 10.0% 80 7.4% 7.5% 7.4% 7.2% 7.3% 7.2% 7.1% 8.0% 6.7% 6.7% 70 6.0% 4.0% 60 $67.32 $68.55
Slide 12: Conclusions
Conclusions Results showed continued momentum across the franchise – Revenue growth in both Consumer and Institutional franchises – Positive operating leverage and continued credit discipline – Delivered 24% YoY EPS growth, including impact of common share buybacks – Showed solid progress toward RoT
Slide 13: Forward-looking statements
Certain statements in this presentation are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances.
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Slide 15: Appendix Table of Contents
Appendix Table of Contents 16. 1Q’18 Returns Analysis 25. Equity & CET1 Capital Drivers (YoY) 17. Citigroup – LTM Efficiency Ratio 26. Equity & CET1 Capital Drivers (QoQ) 18. Estimated FX Impact on Key P&L Metrics 27. Common Equity Tier 1 Capital Ratio and Components 19. Average Balance Sheet Trends
Slide 16: 1Q’18 Returns Analysis
1Q’18 Returns Analysis ($B) Average Average (2) Net Income GAAP ROA Allocated to Common Assets (bps) TCE(3) RoTCE GCB $1.4 $423 133 $35 16.1% ICG 3.3 1,388 97 85 15.8% (1) Corp / Other (0.4) 93 (38) 35 (4.1)% (1) 11.1% RoTCE Citigroup $4.3 $1,904 98 $155 11.4% 1Q’18 excluding gain on sale of Hilton
Slide 17: Citigroup – LTM Efficiency Ratio
Citigroup – LTM Efficiency Ratio LTM Efficiency Ratio 59.9% 59.8% 59.3% 59.2% 58.5% 58.3% 58.2% 3Q'16 (1) 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 Note: LTM: Last Twelve Months. 17 (1) Represents LTM 3Q’16 reported expenses of $43,356 million divided by LTM 3Q’16 reported revenues of $72,245 million, exc
Slide 18: Estimated FX Impact on Key P&L Metrics
Estimated FX(1) Impact on Key P&L Metrics Year-over-Year Impact ($B) 1Q’18 4Q’17 3Q’17 2Q’17 1Q’17 Revenues $0.3 $0.2 $0.1 $(0.1) $(0.2) Expenses 0.3 0.2 0.1 (0.1) (0.1) Credit Costs 0.0 0.0 0.0 (0.0) (0.0) Earnings Before Taxes $0.0 $0.0 $0.0 $(0.0) $(0.0) 18 Note: Totals may not sum due to roundin
Slide 19: Average Balance Sheet Trends
Average Balance Sheet Trends (Constant $B, except as noted) Assets Liabilities & Equity Avg Assets $1,831 $1,869 $1,892 $1,910 $1,904 (as reported) YoY% r YoY% r $1,894 $1,902 $1,925 $1,904 2% $1,894 $1,902 $1,925 $1,904 $1,865 $1,865 197 204 209 194 Cash 188 0% Investments 356 355 354 356 352 976 9
Slide 20: Consumer Credit
Consumer Credit (Constant $B) 1Q'18 Loans Growth 90+ DPD Ratio NCL Ratio ($B) (% ) YoY % 1Q'18 4Q'17 1Q'17 1Q'18 4Q'17 1Q'17 Korea 20.0 6.6% (2.1)% 0.2% 0.2% 0.2% 0.4% 0.4% 0.4% Singapore 12.4 4.1% (0.9)% 0.1% 0.1% 0.2% 0.3% 0.3% 0.5% Hong Kong 11.5 3.8% 12.5% 0.1% 0.1% 0.1% 0.1% 0.1% 0.2% Australia
Slide 21: Regional Credit Portfolio
Regional Credit Portfolio (1Q’18 EOP in $B) Geographic Loan Distribution Loan Composition Commercial Banking Mexico Korea 7% $198 Mortgages 9% 5% Singapore 4% Personal & Other 25% Hong Kong 4% Cards 2% GCB Taiwan 3% $106 North America 62% Other EM 26% 9% 69% 30% Developed Asia 4% 24% 20% DM EM Hong
Slide 22: Consumer Drivers
Consumer Drivers (1) 1Q'18 4Q'17 3Q'17 2Q'17 1Q'17 YoY QoQ GCB Digital Metrics (MM) North America: Active Digital Customers 17.8 17.5 17.1 16.5 15.7 13% 2% Active Mobile Customers 10.0 9.7 9.2 8.6 8.0 25% 3% International: Active Digital Customers 7.1 6.9 6.7 6.3 6.2 14% 2% Active Mobile Customers 4
Slide 23: Institutional Drivers
Institutional Drivers ICG 1Q'18 4Q'17 3Q'17 2Q'17 1Q'17 YoY QoQ (Constant $B) EOP Deposits: 666 644 646 634 635 5% 3% NA 295 296 290 280 287 3% (0)% EMEA 189 176 176 177 172 10% 7% Latin America 26 26 25 27 27 (4)% 1% Asia 156 146 155 150 148 5% 7% Average Loans: 339 331 323 317 308 10% 2% NA 160 15
Slide 24: Preferred Stock Dividend Schedule
Preferred Stock Dividend Schedule ($MM) 2017 2018 2019 1Q $301 $272 $270 2Q 320 318 313 3Q 272 270 270 4Q 320 313 313 Total $1,213 $1,174 $1,167 24 Note: Totals may not sum due to rounding. Based on outstanding preferred stock as of April 13, 2018. Includes impact of announced redemption of Series E
Slide 25: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 1Q’17 $208.7 $181.4 $152.7 12.8% Impact of: Tax Reform(3) (22.6) (22.6) (6.0) (36) Net Income(3) 16.3 16.3 16.3 137 Preferred Stock Dividends (1.2)
Slide 26: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 4Q’17 $181.5 $154.6 $142.8 12.4% Impact of: Net Income 4.6 4.6 4.6 40 Preferred Stock Dividends (0.3) (0.3) (0.3) (2) Common Share Repurchases & Div
Slide 27: Common Equity Tier 1 Capital Ratio and Components
Common Equity Tier 1 Capital Ratio and Components ($MM) Common Equity Tier 1 Capital Ratio and Components(1) 3/31/2018(2) 12/31/2017 9/30/2017 6/30/2017 3/31/2017(3) Citigroup Common Stockholders' Equity(4) $182,942 $181,671 $208,565 $210,950 $208,907 Add: Qualifying noncontrolling interests 140 153
Slide 28: Supplementary Leverage Ratio; TCE Reconciliation
Supplementary Leverage Ratio; TCE Reconciliation ($MM, except per share amounts) Supplementary Leverage Ratio and Components(1) 1Q'18(2) 4Q'17 3Q'17 2Q'17 1Q'17(3) Common Equity Tier 1 Capital (CET1) $144,127 $142,822 $153,534 $155,174 $152,664 Additional Tier 1 Capital (AT1)(4) 19,350 19,555 19,315
Slide 29: Adjusted Results Reconciliation
Adjusted Results Reconciliation ($MM, except otherwise noted) Citigroup 1Q'18 4Q'17 1Q'17 Global Consumer Banking 1Q'18 4Q'17 1Q'17 Reported Income Taxes $1,441 $23,864 $1,863 Reported Net Income $1,392 $580 $997 Impact of: Impact of: Tax Reform - 22,594 - Tax Reform - (750) - Adjusted Income Taxes
Slide 30: FX Impact Reconciliation
FX Impact Reconciliation ($MM) Global Consumer Banking 1Q'18 4Q'17 1Q'17 Latin America Consumer Banking 1Q'18 4Q'17 1Q'17 Reported Retail Banking Revenues $3,471 $3,458 $3,175 Reported Revenues $1,347 $1,359 $1,167 Impact of FX Translation - 46 92 Impact of FX Translation - 42 75 Retail Banking Reve
Slide 31: FX Impact Reconciliation cont’d
FX Impact Reconciliation cont’d ($B) Citigroup 1Q'18 4Q'17 1Q'17 Reported EOP Assets $1,922 $1,842 $1,821 Impact of FX Translation - 16 49 EOP Assets in Constant Dollars $1,922 $1,858 $1,871 Reported EOP Loans $673 $667 $629 Impact of FX Translation - 4 9 EOP Loans in Constant Dollars $673 $671 $638