Slide 1: First Quarter 2020 Earnings Review
Citi | Investor Relations First Quarter 2020 Earnings Review April 15, 2020
Slide 2: Overview
Overview Performance impacted by macro environment – Despite a challenging environment, delivered solid revenue growth, expense control and strong risk management – Supported clients while maintaining credit discipline and balance sheet strength – Loan loss reserve build primarily reflects impact of
Slide 3: COVID-19 Response – Supporting Our People, Clients & Communities
COVID-19 Response – Supporting Our People, Clients & Communities Employees Consumers Corporates Communities • ~80% of employees around • In the US, announced early • Prudently extending credit • Through Citi’s Foundation, the world working assistance efforts and to corporate clients to supporting th
Slide 4: Citigroup – Summary Financial Results
Citigroup – Summary Financial Results ($MM, except EPS) 1Q'20 4Q'19 %r 1Q'19 %r • Revenues Revenues $20,731 $18,378 13% $18,576 12% – Up 12% YoY, primarily Operating Expenses 10,594 10,454 1% 10,584 0% reflecting higher Fixed Efficiency Ratio 51.1% 56.9% 57.0% Income and Equity Markets Operating Mar
Slide 5: Global Consumer Banking
Global Consumer Banking (Constant $MM) 1Q'20 4Q'19 QoQ % r 1Q'19 YoY % r • Revenues Revenues $8,174 $8,339 (2)% $7,975 2% – Up 2% YoY, driven by higher North America 5,224 5,253 (1)% 5,000 4% revenues in North America, International 2,950 3,086 (4)% 2,975 (1)% partially offset by lower revenues
Slide 6: North America Consumer Banking
North America Consumer Banking ($MM) 1Q'20 4Q'19 QoQ % r 1Q'19 YoY % r • Revenues Revenues $5,224 $5,253 (1)% $5,000 4% – Up 4% YoY Branded Cards 2,347 2,439 (4)% 2,195 7% – Branded Cards: Up 7% YoY, reflecting Retail Banking 1,130 1,108 2% 1,131 (0)% volume growth and spread expansion Retail
Slide 7: International Consumer Banking
International Consumer Banking (Constant $MM) 1Q'20 4Q'19 QoQ % r 1Q'19 YoY % r • Revenues Revenues $2,950 $3,086 (4)% $2,975 (1)% – Latin America: Up 3% YoY, excluding one Latin America 1,199 1,293 (7)% 1,198 0% time gain(4), primarily driven by deposit Asia (1) 1,751 1,793 (2)% 1,777 (1)% grow
Slide 8: 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'19 4Q'19 1Q‘20 EOP 1Q'19 4Q'19 1Q‘20 Loans $271.8 $292.6 $279.3 Loans $183.6 $199.5 $188.1 3.18% 2.84% 2.68% 2.72% 3.08% 3.07% 2.84% 2.90% 2.51% 2.42% 2.45% 2.70% 2.68% 2.52% 2
Slide 9: Institutional Clients Group
Institutional Clients Group ($MM) 1Q'20 4Q'19 QoQ % r 1Q'19 YoY % r • Revenues Product Revenues – Total Banking(2): Down 6% YoY: Total Banking $5,170 $5,538 (7)% $5,522 (6)% • TTS down 2% YoY(1), as volume - Treasury & Trade Solutions(1) 2,423 2,608 (7)% 2,539 (5)% growth was more than offset by t
Slide 10: Corporate / Other
Corporate / Other ($MM) 1Q'20 4Q'19 QoQ % r 1Q'19 YoY % r • Revenues – Down 84% YoY, reflecting the Revenues $73 $542 (87)% $468 (84)% wind-down of legacy assets, lower rate environment and Expenses 416 635 (34)% 549 (24)% marks on legacy securities Credit Costs 192 (13) NM (25) NM • Expenses EBT (5
Slide 11: 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% 1Q’20 1Q’20 Citigroup NIM QoQ r YoY r $11.55 $11.79 $11.50 $11.82 $11.49 $(0.33) $(0.06) Markets(1) 0.88 1.23 0.81 1.17 1.14 $(0.03) $0.26 Ex-Markets 10.67 10.56 10.69 10.65 10.3
Slide 12: Citigroup – Key Capital Metrics
Citigroup – Key Capital Metrics ($B, except TBV) Common Equity Tier 1 Capital Ratio(1) Supplementary Leverage Ratio(1) Tangible Book Value / Share (2) 10 0.00 12.1% 12.1% 11.7% 11.9% 11.9% 11.9% 11.6% 11.8% 13 .0 % 11.2% 11 .0 % 90 .0 9.0% 6.7% 6.6% 6.5% 6.4% 6.4% 6.4% 6.3% 80 .0 6.2% 6.0% 7.0% 5.0%
Slide 13: Conclusions
Conclusions Operated well in challenging environment – In GCB, growth in North America partially offset by Asia due to initial COVID-19 impact – Robust results in Markets and solid client engagement across ICG franchise – Delivered profitable quarter despite ~$5B increase in loan loss reserves due t
Slide 14: Forward-looking statements
Certain statements in this presentation are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances.
Slide 15: Cit
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Slide 16: Appendix Table of Contents
Appendix Table of Contents 17. Citigroup Returns 26. Consumer Drivers 18. Citigroup – LTM Efficiency Ratio and 27. Consumer Drivers (continued) Expenses 28. Institutional Drivers 19. Estimated FX Impact on Key P&L Metrics 29. Preferred Stock Dividend Schedule 20. CECL Details 30. Equity & CET1 Capit
Slide 17: Citigroup Returns
Citigroup Returns ($B) 1Q’20 Returns Average Average Net Income GAAP ROA(2) Allocated to Common Assets (bps) TCE(3) RoTCE GCB $(0.8) $406 (75) $34 (8.9)% ICG 3.6 1,580 92 87 16.7% (1) Corp / Other (0.6) 94 (150) 27 (9.5)% (1) Citigroup $2.2 $2,080 49 $149 6.0% LTM’20 Returns Average Average (2) Net
Slide 18: Citigroup – LTM Efficiency Ratio and Expenses
Citigroup – LTM Efficiency Ratio and Expenses ($B) LTM Efficiency Ratio and Expenses 1Q’20 LTM’20 Operating Efficiency 51.1% 55.0% 59.8% 59.3% YoY r (bps) (587) (224) 59.2% 58.5% YoY r ex FX (bps) (573) (219) 58.3% 58.2% 57.9% 57.7% 57.4% 57.2% 56.7% 56.7% 56.5% 55.0% $42.34 $42.32 $42.47 $42.24 $42
Slide 19: Estimated FX Impact on Key P&L Metrics
Estimated FX(1) Impact on Key P&L Metrics ($B) Year-over-Year Impact 1Q’20 4Q’19 3Q’19 2Q’19 1Q’19 Revenues $(0.3) $0.0 $(0.2) $(0.2) $(0.4) Expenses (0.2) 0.0 (0.2) (0.2) (0.3) Credit Costs (0.0) 0.0 (0.0) (0.0) (0.0) Earnings Before Taxes $(0.1) $(0.0) $(0.1) $(0.1) $(0.1) 19 Note: Totals may not
Slide 20: CECL Details
CECL Details ($B) Allowance for Credit Losses Balance CECL Balance Balance LLR / Loans Build FX / as of Transition as of as of as of (Release) Other (1) 12/31/19 Impact 1/1/20 3/31/20 3/31/20 Cards $8.4 $4.5 $12.9 $2.4 $(0.2) $15.1 9.48% All other GCB $1.2 $0.6 $1.8 $0.4 $(0.2) $2.0 Global Consumer
Slide 21: Consumer Credit
Consumer Credit (Constant $B) 1Q'20 Loans Growth 90+ DPD Ratio NCL Ratio ($B) (% ) YoY % 1Q'20 4Q'19 1Q'19 1Q'20 4Q'19 1Q'19 Korea 15.6 5.6% 3.6% 0.2% 0.2% 0.2% 0.6% 0.6% 0.6% Singapore 12.9 4.6% 10.7% 0.1% 0.1% 0.1% 0.3% 0.3% 0.3% Hong Kong 12.2 4.4% 7.7% 0.1% 0.0% 0.0% 0.2% 0.2% 0.2% Australia 8.6
Slide 22: ICG – Corporate Credit Exposure ex-Private Bank
ICG – Corporate Credit Exposure ex-Private Bank ($B) Exposures Geographic Distribution – % of Portfolio Exposure Type 1Q’20 4Q’19 Region 1Q’20 4Q’19 Direct outstandings(1) $320 $281 North America 55% 55% Unfunded lending commitments(2) 363 411 EMEA 26 26 Total $683 $692 Asia 12 12 Industry Compositi
Slide 23: ICG – Corporate Energy Exposure
ICG – Corporate Energy Exposure (EOP in $B) Energy / Energy-Related Exposure Geographic Distribution as of 1Q’20(2) Funded Total Exposure (2) LATAM 8% 1Q’20 4Q’19 1Q’20 4Q’19 UK 12% Energy $19.1 $17.5 $54.6 $53.5 Other EMEA North Energy-Related (1) 3.2 3.2 5.4 5.5 America 14% 57% Asia Total $22.3 $2
Slide 24: ICG – Unfunded Corporate Energy Exposure
ICG – Unfunded Corporate Energy Exposure(1) (EOP in $B) Facility Structure Ratings Detail Key Takeaways 1Q’20 A• Fronting exposure represents CCC AAA / BBB BB / B or Total AA / A below advances to borrowers on behalf of A Fronting Exposure $5.0 – – – $5.0 participating banks B Letters of Credit 2.1
Slide 25: Regional Credit Portfolio
Regional Credit Portfolio (1Q’20 EOP in $B) Geographic Loan Distribution Loan Composition Mexico 5% Mortgages South $197 Singapore 5% Personal, Small Korea 6% Hong Kong 4% Business & Other 27% Cards Taiwan 3% 2% GCB Other EM North America 7% 67% $83 Developed Asia 71% 37% 3% 40% 23% DM EM Hong Kong
Slide 26: Consumer Drivers
Consumer Drivers (1) 1Q'20 4Q'19 3Q'19 2Q'19 1Q'19 YoY QoQ GCB Digital Metrics (MM) North America: Active Digital Customers 19.9 19.7 19.3 18.8 18.8 6% 1% Active Mobile Customers 12.7 12.5 12.2 11.5 11.2 13% 1% International: Active Digital Customers 13.4 13.1 12.6 11.9 11.3 18% 2% Active Mobile Cus
Slide 27: Consumer Drivers (continued)
Consumer Drivers (continued) Digital / Mobile Customers(1) Agent Contact Rate (2) (MM) Digital Customers Mobile Customers 24% 33.3 50% 30.1 23.6 (13)% 27.0 19.7 15.7 1.32 1.27 1.15 1Q'18 1Q'19 1Q'20 1Q'18 1Q'19 1Q'20 LTM'18 LTM'19 LTM'20 E-Statement Penetration(3) E-Payment Penetration(4) ~500 bps 7
Slide 28: Institutional Drivers
Institutional Drivers ICG 1Q'20 4Q'19 3Q'19 2Q'19 1Q'19 YoY QoQ (Constant $B) Average Deposits: 812 792 772 744 724 12% 2% NA 402 392 374 351 346 16% 3% EMEA 195 193 195 195 185 6% 1% Latin America 37 36 34 33 32 14% 2% Asia 177 171 167 165 161 10% 4% EOP Deposits: 878 754 788 737 725 21% 17% NA 445
Slide 29: Preferred Stock Dividend Schedule
Preferred Stock Dividend Schedule ($MM) 2019 2020 2021 1Q $262 $291 $282 2Q 296 253 253 3Q 254 284 282 4Q 296 253 253 Total $1,109 $1,081 $1,071 29 Note: Totals may not sum due to rounding. Based on outstanding preferred stock as of April 15 , 2020 and reflects the fixed dividend rate of each securi
Slide 30: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 4Q’19 $175.3 $148.8 $137.8 11.8% Impact of: CECL Transition Impact(3) (3.1) (3.1) - - CECL 25% Provision Deferral(4) N/A N/A 1.2 10 Net Income 2.5 2
Slide 31: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 1Q’19 $178.3 $151.6 $140.4 11.9% Impact of: CECL Transition Impact(3) (3.1) (3.1) - - CECL 25% Provision Deferral(4) N/A N/A 1.2 10 Net Income 17.2
Slide 32: Common Equity Tier 1 Capital Ratio and Components
Common Equity Tier 1 Capital Ratio and Components ($MM) Common Equity Tier 1 Capital Ratio and Components(1) 1Q'20(2) 4Q'19 3Q'19 2Q'19 1Q'19 Citigroup Common Stockholders' Equity(3) $174,503 $175,414 $177,052 $179,534 $178,427 Add: Qualifying noncontrolling interests 138 154 145 154 144 Regulatory
Slide 33: Supplementary Leverage Ratio; TCE Reconciliation
Supplementary Leverage Ratio; TCE Reconciliation ($MM, except per share amounts) Supplementary Leverage Ratio and Components 1Q'20(1) 4Q'19 3Q'19 2Q'19 1Q'19 Common Equity Tier 1 Capital (CET1) (2) $136,712 $137,798 $138,581 $141,125 $140,355 Additional Tier 1 Capital (AT1)(3) 17,600 18,007 19,452 1
Slide 34: Adjusted Results and FX Impact Reconciliation
Adjusted Results and FX Impact Reconciliation ($MM, except balance sheet items in $B) Citigroup 1Q'20 4Q'19 1Q'19 Latin America Consumer Banking 1Q'20 4Q'19 1Q'19 Reported Net Income $2,522 $4,979 $4,710 Reported Revenues $1,199 $1,377 $1,272 Less: Preferred Dividends 291 296 262 Impact of FX Transl