Citigroup, Inc. · NYSE:C
Citigroup — Q4 2020 Earnings Presentation
31 slides from Citigroup's earnings presentation, Jan 15, 2021
Slide 1: Fourth Quarter 2020 Earnings Review
Citi | Investor Relations On February 26, 2021, Citi announced that, as a result of new information Citi received subsequent to December 31, 2020, it adjusted downward its fourth quarter 2020 financial results, from those previously reported on January 15, 2021, due to a $390 million increase in ope
Slide 2: Overview
Overview Solid performance in the fourth quarter despite macro environment – In ICG, continued strong Trading offset by lower rates and Investment Banking activity – Robust deposit growth across both Consumer and Institutional franchises – Sequential improvement in spend activity and solid digital e
Slide 3: Citigroup – Summary Financial Results
Citigroup – Summary Financial Results ($MM, except EPS) 4Q'20 3Q'20 %r 4Q'19 %r 2020 %r Revenues $16,499 $17,302 (5)% $18,378 (10)% $74,298 0% Operating Expenses 10,714 10,964 (2)% 10,454 2% 42,781 2% Efficiency Ratio 64.9% 63.4% 56.9% 57.6% Operating Margin 5,785 6,338 (9)% 7,924 (27)% 31,517 (2)%
Slide 4: CECL Details
CECL Details Allowance for Credit Losses ($B) ACLL / Balance 1Q'20 2Q'20 3Q'20 Balance 4Q'20 Balance Loans as of Build / Build / Build / as of Build / as of as of 1/1/20(1) (Release) (Release) (Release) 9/30/20(2) (Release) 12/31/20(2) 12/31/20 Cards $12.5 $2.4 $1.9 $0.1 $16.7 $(0.1) $16.8 10.98% Al
Slide 5: Institutional Clients Group
Institutional Clients Group ($MM) 4Q'20 QoQ % r YoY % r 2020 %r • Revenues – Down 1%, as strong trading Total Revenues $9,279 (10)% (1)% $44,253 13% performance was more than offset by Banking(1) 5,133 (2)% (7)% 21,232 (3)% lower revenues in TTS, Investment Markets and Securities Services 4,458
Slide 6: Institutional Clients Group – Revenues
Institutional Clients Group – Revenues ($MM) 4Q'20 QoQ % r YoY % r 2020 %r • Total Banking(2) – TTS down 6% ex-FX(1) YoY, driven by Product Revenues the impact of lower interest rates and lower commercial cards revenues Total Banking $5,133 (2)% (7)% $21,232 (3)% - Treasury & Trade Solutions (1) 2
Slide 7: Global Consumer Banking
Global Consumer Banking (Constant $MM) 4Q'20 QoQ % r YoY % r 2020 %r Revenues $7,305 0% (13)% $29,991 (8)% • Revenues North America 4,655 3% (11)% 19,148 (6)% – Down 13% YoY, driven by lower International 2,650 (3)% (16)% 10,843 (10)% card volumes and lower interest Expenses 4,511 5% 4% 17,203 (
Slide 8: North America Consumer Banking
North America Consumer Banking ($MM) 4Q'20 QoQ % r YoY % r 2020 %r • Revenues Revenues $4,655 3% (11)% $19,148 (6)% – Down 11% YoY Branded Cards 2,132 3% (13)% 8,758 (4)% – Branded Cards: Down 13% YoY, Retail Services 1,431 6% (16)% 5,933 (12)% reflecting lower purchase sales and Retail Bankin
Slide 9: International Consumer Banking
International Consumer Banking (Constant $MM) 4Q'20 QoQ % r YoY % r 2020 %r • Revenues Revenues $2,650 (3)% (16)% $10,843 (10)% – Latin America: Down 16% YoY, driven by Latin America 1,096 (0)% (16)% 4,372 (8)% lower loan volumes and lower deposit Asia(1) 1,554 (6)% (16)% 6,471 (11)% spreads, pa
Slide 10: Global Consumer Banking – Credit Trends
Global Consumer Banking – Credit Trends (EOP Loans in Constant $B) NCL 90+ DPD Global Consumer Banking North America EOP 4Q'19 3Q'20 4Q'20 EOP 4Q'19 3Q'20 4Q'20 Loans $302.0 $277.1 $282.1 Loans $199.5 $178.6 $183.1 3.08% 3.07% 3.10% 3.22% 2.70% 2.68% 2.52% 2.51% 2.68% 2.73% 2.84% 2.90% 2.63% 2.33% 1
Slide 11: Corporate / Other
Corporate / Other ($MM) 4Q'20 QoQ % r YoY % r 2020 %r • Revenues Revenues $(85) $54 – Down YoY, reflecting the impact of 62% NM (97)% lower rates, the wind-down of Expenses 647 (33)% 2% 2,501 16% legacy assets and the absence of episodic gains Credit Costs (42) 69% NM 178 NM • Expenses EBT (690) 35%
Slide 12: Citigroup – Net Interest Revenue & Markets Revenue
Citigroup – Net Interest Revenue & Markets Revenue Net Interest Revenue (NIR) (Constant $B) 2.72% 2.67% 2.63% 2.56% 2.48% Citigroup NIM 2.17% 4Q'20 4Q'20 2020 2.03% 2.00% QoQ r YoY r YoY r $11.61 $11.91 $11.53 $11.83 $11.53 $11.26 Markets(1) 0.90 1.33 0.80 1.17 1.14 $10.59 $10.48 $(0.10) $(1.34) $(3
Slide 13: Citigroup – Key Capital Metrics
Citigroup – Key Capital Metrics ($B, except TBV) Common Equity Tier 1 Capital Ratio(1) Supplementary Leverage Ratio(1) Tangible Book Value / Share(2) 100.00 11.9% 11.9% 11.9% 11.6% 11.8% 11.6% 11.7% 11.8% 13.0% 11.2% 11.0% 90.00 9.0% 6.7% 6.8% 7.0% 80.00 6.4% 6.4% 6.4% 6.3% 6.2% 6.0% 7.0% 5.0% 70.00
Slide 14: Conclusions
Conclusions 2020 results demonstrated the resilience of the franchise – Significant earnings power with over $11B of net income, despite ~$10B increase in reserves – Robust client engagement across ICG and continued strength in Markets & Inv. Banking – Strong growth in GCB deposits and wealth, albei
Slide 15: Forward-looking statements
Certain statements in this document are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Thes
Slide 16: Citi
CITI
Slide 17: Appendix – Table of Contents
Appendix Table of Contents 18. Citigroup Returns 26. Equity & CET1 Capital Drivers (QoQ) 19. Citigroup Returns Trend 27. Equity & CET1 Capital Drivers (YoY) 20. Estimated FX Impact on Key P&L Metrics 28. Common Equity Tier 1 Capital Ratio and Components 21. Consumer Credit 29. Supplementary Leverage
Slide 18: Citigroup Returns
Citigroup Returns ($B) 4Q’20 Returns Average Average (2) Net Income GAAP ROA Allocated to Common Assets (bps) TCE(3) RoTCE GCB $1.3 $447 116 $34 15.1% ICG 3.7 1,756 83 87 16.6% Corp / Other (0.6)(1) 96 (133) 30 (7.8)% Citigroup $4.4(1) $2,299 80 $152 11.4% 2020 Returns Average Average Net Income GAA
Slide 19: Citigroup Returns Trend
Citigroup Returns Trend Citigroup RoTCE 12.1% 10.9% 8.1% 6.9% 2017 (1) 2018(1) 2019 2020 ICG Return on Allocated TCE GCB Return on Allocated TCE 16.6% 17.3% 14.2% 14.6% 13.8% 13.3% 13.0% 2.6% 2017(1) 2018 2019 2020 2017 (1) 2018 2019 2020 Note: Tangible common equity (TCE) allocated to GCB and ICG b
Slide 20: Estimated FX Impact on Key P&L Metrics
Estimated FX(1) Impact on Key P&L Metrics ($B) Year-over-Year Impact 4Q’20 3Q’20 2Q’20 1Q’20 4Q’19 Revenues $(0.2) $(0.2) $(0.4) $(0.3) $0.0 Expenses (0.0) (0.0) (0.3) (0.2) 0.0 Credit Costs (0.0) (0.0) (0.1) (0.0) 0.0 Earnings Before Taxes $(0.2) $(0.1) $(0.1) $(0.1) $(0.0) 20 Note: Totals may not
Slide 21: Consumer Credit
Consumer Credit (Constant $B) 4Q'20 Loans Growth 90+ DPD Ratio NCL Ratio ($B) (% ) YoY % 4Q'20 3Q'20 4Q'19 4Q'20 3Q'20 4Q'19 Korea 18.6 6.6% 7.0% 0.2% 0.2% 0.2% 0.6% 0.7% 0.6% Singapore 13.8 4.9% 1.2% 0.1% 0.1% 0.1% 0.3% 0.4% 0.3% Hong Kong 13.2 4.7% 1.8% 0.1% 0.1% 0.0% 0.2% 0.3% 0.2% Australia 9.4
Slide 22: Regional Credit Portfolio
Regional Credit Portfolio (4Q’20 EOP in $B) Geographic Loan Distribution Loan Composition Mexico 5% Mortgages Korea $192 7% Personal, Small Singapore 5% Business & Other Hong Kong 5% 29% Cards Taiwan 3% 2% GCB North America Other EM $90 65% 8% 69% 38% Developed Asia 3% 40% 22% DM EM Hong Kong 5% Pri
Slide 23: Consumer Drivers
Consumer Drivers (1) 4Q'20 3Q'20 2Q'20 1Q'20 4Q'19 YoY QoQ GCB Digital Metrics (MM) North America: Active Digital Customers 20.2 20.0 20.0 20.0 19.7 2% 1% Active Mobile Customers 12.9 12.8 12.7 12.7 12.5 4% 1% International: Active Digital Customers 14.5 14.0 13.5 13.5 13.1 10% 3% Active Mobile Cust
Slide 24: Consumer Drivers (continued)
Consumer Drivers (continued) Digital / Mobile Customers(1) Agent Contact Rate(2) (MM) Digital Customers Mobile Customers 18% 34% (27)% 32.8 34.6 25.3 1.29 29.4 23.1 18.9 1.19 0.94 4Q'18 4Q'19 4Q'20 4Q'18 4Q'19 4Q'20 FY'18 FY'19 FY'20 E-Statement Penetration(3) E-Payment Penetration(4) ~700 bps 80% ~
Slide 25: Institutional Drivers
Institutional Drivers (Constant $B) ICG 4Q'20 3Q'20 2Q'20 1Q'20 4Q'19 YoY QoQ Average Deposits: 959 943 935 819 799 20% 2% NA 496 488 482 402 392 27% 2% EMEA 220 220 219 201 198 11% 0% Latin America 43 43 41 35 34 27% (0)% Asia 199 191 193 181 175 14% 4% EOP Deposits: 924 938 927 903 775 19% (1)% NA
Slide 26: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 3Q’20 $175.9 $149.8 $142.2 11.7% Impact of: CECL 25% Provision Deferral(3) N/A N/A (0.3) (2) Net Income 4.6 4.6 4.6 38 Preferred Stock Dividends (0.
Slide 27: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 4Q’19 $175.3 $148.8 $137.8 11.8% Impact of: CECL Transition Impact(3) (2.9) (2.9) - - CECL 25% Provision Deferral(4) N/A N/A 2.5 20 Net Income 11.4
Slide 28: Common Equity Tier 1 Capital Ratio and Components
Common Equity Tier 1 Capital Ratio and Components ($MM) Common Equity Tier 1 Capital Ratio and Components(1) 4Q'20(2) 3Q'20 2Q'20 1Q'20 4Q'19 Citigroup Common Stockholders' Equity(3) $180,441 $176,047 $173,877 $174,846 $175,414 Add: Qualifying noncontrolling interests 141 141 145 138 154 Regulatory
Slide 29: Supplementary Leverage Ratio; TCE Reconciliation
Supplementary Leverage Ratio; TCE Reconciliation ($MM, except per share amounts) Supplementary Leverage Ratio and Components 4Q'20(1) 3Q'20 2Q'20 1Q'20 4Q'19 Common Equity Tier 1 Capital (CET1) (2) $147,469 $142,158 $139,622 $136,853 $137,798 Additional Tier 1 Capital (AT1)(3) 19,778 18,153 17,988 1
Slide 30: Adjusted Results Reconciliation
Adjusted Results Reconciliation ($MM, except as otherwise noted) Citigroup 4Q'20 3Q'20 4Q'19 2020 2019 2018 2017 Reported Net Income (Loss) $4,632 $3,146 $4,979 $11,370 $19,401 $18,045 $(6,798) (1) Impact of Tax Reform - - - - - 94 (22,594) Adjusted Net Income $4,632 $3,146 $4,979 $11,370 $19,401 $1
Slide 31: FX Impact Reconciliation
FX Impact Reconciliation ($MM, except balance sheet items in $B) Citigroup 4Q'20 3Q'20 4Q'19 2020 2019 Latin America Consumer Banking 4Q'20 3Q'20 4Q'19 2020 2019 Reported EOP Assets $2,260 $2,234 $1,951 $2,260 $1,951 Reported Revenues $1,096 $1,027 $1,377 $4,372 $5,238 Impact of FX Translation - 40