Slide 1: Earnings Results Presentation Third Quarter 2022
Earnings Results Presentation Third Quarter 2022 October 14, 2022
Slide 2: Third Quarter Results Snapshot
Third Quarter Results Snapshot Revenues Net Income EPS 3Q22 $18.5 billion 3Q22 $3.5 billion 3Q22 $1.63 vs. 3Q21 6% vs. 3Q21 (25)% vs. 3Q21 (24)% RoTCE(1) CET1 Capital Ratio(2) Tangible Book Value Per Share(3) 3Q22 8.2% 3Q22 12.2% 3Q22 $80.34 3Q21 11.0% 3Q21 11.7% vs. 3Q21 2% Third Quarter Key Highli
Slide 3: Progress Against Priorities in 3Q22
Progress Against Priorities in 3Q22 Transformation Strategic Execution Culture and Talent ✓ Established the Global Business Risk & ✓ Strong TTS drivers, with trade loan origination up ✓ Expanded and raised diversity representation Controls Office, and redesigned the enterprise- 27% and cross-border
Slide 4: Financial Results Overview
Financial Results Overview Financial Results Financial Overview Highlights ($ in MM, except EPS) 3Q22 % Δ QoQ % Δ YoY YTD22 % Δ YoY • Revenues – Up 6% YoY, down 1% excluding divestiture related impacts(5), driven by increased rates, continued momentum in Services Net Interest Income $12,563 5% 18% $
Slide 5: Net Interest Income, Average Loans and Deposits
Net Interest Income, Average Loans and Deposits ($ in B) Net Interest Income 2.24% 2.31% 3Q22 3Q22 1.99% 1.98% 2.05% Citigroup NIM QoQ r YoY r $11.96 $12.56 $10.69 $10.82 $10.87 1.23 $0.60 $1.87 1.38 Markets(1) 1.27 1.25 1.11 $(0.16) $(0.04) 10.58 11.34 Ex-Markets 9.43 9.57 9.76 $0.75 $1.91 3Q21 4Q2
Slide 6: 3Q22 YoY Expense Walk
3Q22 YoY Expense Walk ($ in B) ~+7% ~+8% Guidance for FY 2022 ~1% $12.7 • ~7-8% ~3% $12.6 excl. 2021 ~1% and 2022 ~2% ~1% divestiture $11.8 • Other risk & impacts(3) • Client experience, • Transactional control initiatives product and platform costs in Markets • Improving Risk & and PBWM • Merit / I
Slide 7: Credit and Exposure Overview
Credit and Exposure Overview ($ in B) PBWM ICG Exposure US Credit Cards Portfolio By Region By Grade Rating FICO(1) Latin America 7% 22% 19% APAC Non-IG 12% 17% North EMEA America 25% 56% IG 78% 83% 81% 2017 3Q22 3Q22 3Q22 Total US Credit Cards: $140 Total US Credit Cards: $140 Total EOP Loans: $281
Slide 8: Capital and Balance Sheet Overview
Capital and Balance Sheet Overview ($ in B, except per share data) Risk-based Capital Metrics(1) End of Period Assets 3Q21 2Q22 3Q22 $2,362 $2,381 $2,381 CET1 Capital $150 $145 $145 Cash 324 284 300 Standardized RWAs 1,284 1,217 1,190 Investments, net 501 514 508 CET1 Capital Ratio - Standardized 11
Slide 9: Standardized CET1 Ratio Overview
Standardized CET1 Ratio Overview 3Q22 QoQ Standardized CET1 Ratio Walk CET1 Standardized Regulatory Minimum and Target Drivers of CET1 Capital ratio increasing to ~12.2%, above the current regulatory • Well capitalized today with a CET1 Capital ratio of ~12.2%, above the requirement and above the re
Slide 10: Institutional Clients Group Results
Institutional Clients Group Results Institutional Clients Group Results Institutional Clients Group Highlights ($ in MM) 3Q22 % Δ QoQ % Δ YoY • Revenues – Down 5% YoY, as continued momentum in Services was more Net Interest Income $4,570 1% 22% than offset by lower revenues across Markets and Bankin
Slide 11: ICG Revenue Items and Selected Business Drivers and Statistics
ICG Revenue Items and Selected Business Drivers and Statistics Revenues Highlights ($ in MM) 3Q22 % Δ QoQ % Δ YoY Services Net Interest Income $2,232 10% 61% • Treasury and Trade Solutions revenues were up 40% YoY, driven by 61% Non-interest revenue 977 (3)% 8% YoY growth in net interest income, and
Slide 12: Personal Banking & Wealth Management Results
Personal Banking & Wealth Management Results Personal Banking & Wealth Management Results Personal Banking & Wealth Management Highlights ($ in MM) 3Q22 % Δ QoQ % Δ YoY • Revenues – Up 6% YoY, as growth in net interest income was partially offset Net Interest Income $5,836 5% 13% by a decline in non
Slide 13: PBWM Revenues Items and Selected Business Drivers and Statistics
PBWM Revenues Items and Selected Business Drivers and Statistics Revenues Highlights ($ in MM) 3Q22 % Δ QoQ % Δ YoY • Branded Cards revenues up 10% YoY, driven by higher net interest income; Branded Cards $2,258 4% 10% continue to see strong underlying drivers, with 14% growth in spend volume Retail
Slide 14: Legacy Franchises Results
Legacy Franchises Results Legacy Franchises Results Legacy Franchises Highlights ($ in MM) 3Q22 % Δ QoQ % Δ YoY • Revenues – Up 66% YoY, primarily driven by the Philippines consumer business gain on sale and the absence of the Australia consumer business loss Net Interest Income $1,385 (6)% (10)% on
Slide 15: Corporate / Other Results
Corporate / Other Results Corporate / Other Results Corporate / Other Highlights ($ in MM, unless otherwise noted) 3Q22 % Δ QoQ % Δ YoY • Revenues – Higher revenue YoY primarily driven by higher net revenues from Net Interest Income $772 93% NM the investment portfolio, partially offset by mark-to-m
Slide 16: Maintaining 2022 Guidance For Revenue and Expenses
Maintaining 2022 Guidance For Revenue and Expenses Revenue Expenses ($ in B) ($ in B) FY 2022 FY 2022 Low single digit growth in total revenue YoY, excluding ~7-8% YoY, 2022 divestiture related impacts(1) excluding 2021 & 2022 divestiture related impacts(2) $71.9 ~$(0.7) (3) Divestitures $57.3 4Q22
Slide 17: Forward-looking statements
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: Update on Russia Exposure
Update on Russia Exposure Overview • Russia exposure decreased roughly $500 million from last quarter: ꟷ Exposure decrease of $700 million driven by the depreciation of the ruble ꟷ Exposure increase of $200 million, in local currency terms, driven by earnings and the settlement of derivative transac
Slide 20: Regional Credit Portfolio
Regional Credit Portfolio (3Q22 EOP $ in B) ICG PBWM Legacy Franchises Signed Exit Markets EOP Geographic Loan Distribution Hong Kong 4% Loans(1): ~$17B Brazil 4% Singapore 6% North Singapore 3% Hong Kong 6% Emerging EMEA Mexico 3% 5% America Developed China 2% EMEA 4% 9% Korea EMEA 19% 23% China 8%
Slide 21: Branded Cards and Retail Services – Credit Trends
Branded Cards and Retail Services – Credit Trends ($ in B) Branded Cards Retail Services NCL 90+ DPD NCL 90+ DPD EOP 3Q21 2Q22 3Q22 EOP 3Q21 2Q22 3Q22 Loans $82.8 $91.6 $93.7 Loans $42.7 $45.8 $46.7 3.45% 2.84% 3.00% 3.09% 2.60% 2.71% 2.43% 2.36% 2.23% 2.31% 2.10% 1.73% 1.46% 1.50% 1.50% 1.33% 1.39%
Slide 22: Estimated Timelines for Signed Exit Markets & Contribution
Estimated Timelines for Signed Exit Markets & Contribution 2021 2022 2023 Buyer Country 2H21 1H22 2H22 1H23 2H23 NAB Australia Closed Signed Union Bank Philippines Closed Signed Thailand Closing Signed Malaysia Closing Signed UOB Indonesia Closing Signed Vietnam Closing Signed DBS Taiwan Closing Sig
Slide 23: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($ in B, except basis points (bps)) CET1 Common Tangible CET1 Capital Equity Common Equity(1) Capital(2) Ratio(2) (bps) 2Q22 $180.0 $155.4 $144.9 11.9% Impact of: CECL Transition Provision(3) N/A N/A - - Net Income 3.5 3.5 3.5 29 Preferred Stock Dividends (0.3) (0
Slide 24: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($ in B, except basis points (bps)) CET1 Common Tangible CET1 Capital Equity Common Equity(1) Capital(2) Ratio(2) (bps) 3Q21 $182.9 $156.9 $149.6 11.7% Impact of: CECL Transition Provision(3) N/A N/A (1.1) (9) Net Income 15.5 15.5 15.5 121 Preferred Stock Dividend
Slide 25: Tangible Common Equity Reconciliation
Tangible Common Equity Reconciliation ($ in MM, except per share amounts) Tangible Common Equity and Tangible Book Value Per Share 3Q21 2Q22 3Q22 Common Stockholders' Equity $182,880 $180,019 $179,565 Less: Goodwill 21,573 19,597 19,326 Intangible Assets (other than Mortgage Servicing Rights) 4,144
Slide 26: Citigroup Returns
Citigroup Returns ($ in B) 3Q22 Returns YTD22 Returns Average Average Net Income Allocated Net Income Allocated to Common TCE(2) RoTCE(3) to Common TCE(2) RoTCE(3) ICG $2.2 $96 9.0% ICG $8.8 $96 12.2% PBWM 0.8 32 9.7% PBWM 3.2 32 13.2% Legacy Franchises 0.3 12 10.6% Legacy Franchises (0.1) 12 (0.9)%
Slide 27: FX Impact
FX Impact ($ in MM) Total Citigroup ICG Foreign currency (FX) translation im pact (1) 3Q22 2Q22 3Q21 QoQ YoY Foreign currency (FX) translation im pact (1) 3Q22 2Q22 3Q21 QoQ YoY Total Revenue- as Reported 18,508 19,638 17,447 (6)% 6% Total Average Loans - as reported 291 297 289 (2)% 1% Impact of FX
Slide 28: Reconciliation of Adjusted Results
Reconciliation of Adjusted Results Citigroup ICG ($ in MM) 3Q22 3Q21 YoY ($ in MM) 3Q22 2Q22 3Q21 QoQ YoY Total Citigroup Revenues - As Reported $18,508 $17,447 6% Total Banking Revenues - As Reported $1,223 $2,076 $2,463 (41% ) (50% ) Less: Less: (1) Gain/(loss) on loan hedges(3) (56) 494 (46) Tota
Slide 29: Reconciliation of Adjusted Results (cont.)
Reconciliation of Adjusted Results (cont.) Exit Markets ($ in MM) 3Q22 2Q22 Signed Exit Markets & Korea & Russia Revenue $1,252 $738 Less: (1) Impact of Gain / (Loss) on sale related to Asia Divestitures 626 20 (2) Held for sale accounting reclass (12) 58 Adjusted Signed Exit Markets & Korea & Russi
Slide 30: 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 26. 2) 3Q22 is Preliminary. Citigroup
Slide 31: Footnotes continued
Footnotes continued Slide 6 1) Transformation includes actions to remediate Consent Orders issued in Oct 2020 and other investments to modernization Citi’s infrastructure. 2) Excludes the impact of divestiture related expense items. Divestiture related expenses of approximately $107 million are prim
Slide 32: Footnotes continued
Footnotes continued Slide 8 1) 3Q22 is preliminary. Citigroup’s reportable CET1 Capital ratios were derived under the Basel III Standardized Approach framework for all periods presented. This reflects the more binding CET1 Capital ratios under both the Standardized Approach and the Advanced Approach
Slide 33: Footnotes continued
Footnotes continued Slide 10 1) Allowance for Credit Losses (ACL) Build / (Release) and Other provisions includes a net ACL build of approximately $16 million, including provision / (release) for unfunded lending commitments, and other provisions of approximately $70 million relating to held-to-matu
Slide 34: Footnotes continued
Footnotes continued Slide 12 1) Allowance for Credit Losses (ACL) Build / (Release) and Other provisions includes a net ACL build of approximately $379 million, including provision / (release) for unfunded lending commitments, and other provisions of approximately $7 million which relate to policyho
Slide 35: Footnotes continued
Footnotes continued Slide 16 1) Excludes the impact of divestiture related revenue. Divestiture related revenues of approximately $614 million are primarily comprised of the gain on sale of the Philippines consumer business within Legacy Franchises of approximately $616 million and certain adjustmen
Slide 36: Footnotes continued
Footnotes continued Slide 23 1) Tangible common equity (TCE) is a non-GAAP financial measure. For additional information on this measure, please refer to Slide 25. 2) For the composition of Citigroup’s CET1 Capital, please see Appendix C of the 3Q22 earnings press release included as Exhibit 99.1 to
Slide 37: Footnotes continued
Footnotes continued Slide 27 1) Reflects the impact of foreign currency (FX) translation into U.S. dollars by applying the third quarter 2022 and year-to-date 2022 average exchange rates for all periods presented, as applicable. Slide 28 1) Excludes the impact of divestiture related revenue and expe