Slide 1: Fourth Quarter 2018 Earnings Review
Citi | Investor Relations Fourth Quarter 2018 Earnings Review January 14, 2019
Slide 2: Overview
Overview 4Q’18 showed continued progress in a challenging environment – Continued momentum in Institutional accrual businesses and strong results in M&A – Solid growth in U.S. Branded Cards(1), Retail Services and Latin America Consumer – Expenses declined 4% QoQ and YoY, resulting in ninth consecut
Slide 3: Citigroup – Summary Financial Results
Citigroup – Summary Financial Results(1) ($MM, except EPS) 4Q'18 3Q'18 %r 4Q'17 %r Revenues $17,124 $18,389 (7)% $17,504 (2)% • Revenues Operating Expenses 9,893 10,311 (4)% 10,332 (4)% – Revenues were down 2% Efficiency Ratio 57.8% 56.1% 59.0% primarily reflecting lower fixed Operating Margin 7,231
Slide 4: Citigroup – Full Year Comparison
Citigroup – Full Year Comparison(1) ($B, except EPS) FY’18 FY’17 YoY % r Underlying YoY % r(2) GCB revenue by region(3) GCB Revenue $33.8 $32.8 3% North America 1% ICG Revenue $37.0 $36.5 1% Asia 2% Latin America 8% Corp / Other Rev $2.1 $3.1 (33)% GCB 3% ICG revenue by business(4) Citi Revenue $72.
Slide 5: North America Consumer Banking
North America Consumer Banking(1) ($MM) 4Q'18 QoQ % r YoY % r 2018 %r • Revenues Revenues $5,254 2% 1% $20,544 1% Retail Banking 1,331 0% (1)% 5,315 1% – Retail Banking: Excluding mortgage, revenues up 5% YoY, as continued Mortgage 128 (4)% (35)% 551 (27)% growth in deposit spreads was partially R
Slide 6: International Consumer Banking
International Consumer Banking (Constant $MM) 4Q'18 QoQ % r YoY % r 2018 %r • Revenues Revenues $3,186 (7)% 1% $13,233 6% – Latin America: Up 7% YoY, excluding the Latin America 1,362 (13)% 5% 5,760 13% impact of the sale of asset management - Retail Banking 965 (19)% 4% 4,195 14% business(4), ref
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 4Q'17 3Q'18 4Q'18 EOP 4Q'17 3Q'18 4Q'18 Loans $307.3 $307.7 $315.2 Loans $195.7 $194.1 $201.3 2.63% 2.58% 2.63% 2.48% 2.77% 2.72% 2.56% 2.60% 2.24% 2.20% 2.26% 2.15% 2.30% 2.28% 2
Slide 8: Institutional Clients Group
Institutional Clients Group(1) ($MM) 4Q'18 QoQ % r YoY % r 2018 %r • Revenues Product Revenues – Total Banking(2): Up 5% YoY driven Total Banking $5,036 3% 5% $19,930 5% by continued momentum and solid - Treasury & Trade Solutions 2,402 5% 7% 9,289 8% performance in TTS, Private Bank - Investment
Slide 9: Corporate / Other
Corporate / Other(1) ($MM) 4Q'18 QoQ % r YoY % r 2018 %r • Revenues Revenues $470 (5)% (37)% $2,083 (33)% – Down YoY driven by wind-down of legacy assets Expenses 473 3% (45)% 2,272 (40)% Credit Costs (47) (57)% (4)% (202) (15)% • Expenses – Down YoY reflecting the wind- EBT 44 (32)% NM 13 NM down o
Slide 10: Citigroup – Net Interest Revenue & Margin
Citigroup – Net Interest Revenue & Margin (NIR in Constant $B) Core Accrual Trading-Related Legacy Assets Citigroup NIM Core Accrual NIM 3.72% 0.04 3.54% 3.60% 3.60% 3.51% 3.47% 3.48% 3.46% 0.035 2.76% 2.75% 2.74% 2.70% 2.70% 2.71% 0.03 2018 4Q’18 2.65% 2.64% YoY r YoY r $11.47 $11.69 $11.92 0.025$1
Slide 11: Citigroup – Key Capital Metrics
Citigroup – Key Capital Metrics ($B, except TBV) Common Equity Tier 1 Capital Ratio(1) Supplementary Leverage Ratio(1) Tangible Book Value / Share(1) 15.0% 12.8% 13.1% 13.0% 12.6% 12.4% 90.00 12.1% 12.1% 11.7% 11.9% 13.0% 11.0% 80.00 9.0% 7.2% 7.3% 7.2% 7.1% 6.7% 6.7% 6.6% 6.5% 6.4% 7.0% 70.00 5.0%
Slide 12: Conclusions
Conclusions Results showed continued momentum across the franchise in 2018 – Underlying revenue growth in aggregate across GCB and ICG of 3%(1) – Positive operating leverage and continued credit discipline resulting in EBT growth – Delivered 25% YoY EPS growth(2), including impact of common share bu
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. 2018 Returns Analysis 25. Preferred Stock Dividend Schedule 17. Citigroup – LTM Efficiency Ratio and 26. Equity & CET1 Capital Drivers (YoY) Expenses 27. Equity & CET1 Capital Drivers (QoQ) 18. Estimated FX Impact on Key P&L Metrics 28. Common Equity Tier 1 Capital Rat
Slide 16: 2018 Returns Analysis
2018 Returns Analysis(1) ($B) Average Average (3) Net Income GAAP ROA Allocated to Common Assets (bps) TCE(4) RoTCE GCB $5.8 $423 136 $35 16.4% ICG 12.2 1,404 87 85 14.3% (2) Corp / Other (1.2) 94 1 33 (3.5)% (2) Citigroup $16.8 $1,920 93 $153 10.9% Note: Totals may not sum due to rounding. (1) Adju
Slide 17: Citigroup – LTM Efficiency Ratio and Expenses
Citigroup – LTM Efficiency Ratio and Expenses ($MM) LTM Efficiency Ratio and Expenses 4Q’18 2018 Operating Efficiency 57.8% 57.4% (1) 59.9% 59.8% YoY r (bps) (125) (86) 59.3% 59.2% YoY r ex FX (bps) (123) (100) 58.5% 58.3% 58.2% 57.9% 57.7% 57.4% $43,356 $42,338 $42,319 $42,472 $42,242 $42,232 $42,4
Slide 18: Estimated FX Impact on Key P&L Metrics
Estimated FX(1) Impact on Key P&L Metrics ($B) Year-over-Year Impact 4Q’18 3Q’18 2Q’18 1Q’18 4Q’17 Revenues $(0.4) $(0.3) $(0.1) $0.3 $0.2 Expenses (0.3) (0.2) (0.0) 0.3 0.2 Credit Costs (0.0) (0.0) (0.0) 0.0 0.0 Earnings Before Taxes $(0.1) $(0.1) $(0.0) $0.0 $0.0 18 Note: Totals may not sum due to
Slide 19: Asia Consumer Banking – LTM Revenues
Asia Consumer Banking(1) – LTM Revenues (in Constant $B) LTM Revenues Consumer excluding Investment Products Investment Products(2) Consumer excl. Investments LTM YoY Growth(3): 4% 4% 4% 3% 3% 1% 2% 0% 1% $7.18 $7.29 $7.32 $7.33 $7.31 $6.89 $6.95 $7.04 $6.84 1.15 1.19 1.19 1.14 1.09 1.03 1.07 1.09 1
Slide 20: Consumer Credit
Consumer Credit (Constant $B) 4Q'18 Loans Growth 90+ DPD Ratio NCL Ratio ($B) (% ) YoY % 4Q'18 3Q'18 4Q'17 4Q'18 3Q'18 4Q'17 Korea 18.5 5.9% (2.6)% 0.2% 0.2% 0.2% 0.4% 0.4% 0.4% Hong Kong 12.6 4.0% 8.7% 0.1% 0.1% 0.1% 0.3% 0.1% 0.1% Singapore 12.4 3.9% 1.8% 0.1% 0.2% 0.1% 0.5% 0.4% 0.3% Australia 9.
Slide 21: Regional Credit Portfolio
Regional Credit Portfolio (4Q’18 EOP in $B) Geographic Loan Distribution Loan Composition $211 Commercial Banking Mexico Korea 6% 8% 5% Mortgages Hong Kong 4% Personal & Other 24% Singapore 4% Cards 1% Taiwan 3% GCB $104 Other EM North America 8% 64% 26% 70% 29% Developed Asia 3% 25% 21% DM EM Hong
Slide 22: Consumer Drivers
Consumer Drivers (1) 4Q'18 3Q'18 2Q'18 1Q'18 4Q'17 YoY QoQ GCB Digital Metrics (MM) North America: Active Digital Customers 18.3 18.1 17.8 17.7 17.5 5% 1% Active Mobile Customers 10.8 10.5 10.1 9.9 9.7 12% 3% International: Active Digital Customers 10.8 10.4 9.6 9.2 8.9 21% 4% Active Mobile Customer
Slide 23: Consumer Drivers Continued
Consumer Drivers Continued Digital / Mobile Users(1) Agent Contact Rate(2) (MM) Digital Users Mobile Users 26% 29.1 (7)% 26.4 62% 23.1 1.39 18.6 1.34 15.0 1.29 11.5 4Q'16 4Q'17 4Q'18 4Q'16 4Q'17 4Q'18 FY'16 FY17 FY'18 E-Statement Penetration(3) E-Payment Penetration(4) ~700 bps 74% 70% ~1,000 bps 66
Slide 24: Institutional Drivers
Institutional Drivers ICG 4Q'18 3Q'18 2Q'18 1Q'18 4Q'17 YoY QoQ (Constant $B) EOP Deposits: 690 683 671 649 628 10% 1% NA 323 318 308 295 296 9% 2% EMEA 184 178 184 179 167 10% 3% Latin America 27 26 25 24 24 14% 4% Asia 156 161 153 151 141 10% (3)% Average Loans: 351 345 342 331 324 8% 2% NA 171 16
Slide 25: Preferred Stock Dividend Schedule
Preferred Stock Dividend Schedule ($MM) 2018 2019 2020 1Q $272 $262 $254 2Q 318 296 296 3Q 270 254 254 4Q 313 296 296 Total $1,173 $1,109 $1,100 25 Note: Totals may not sum due to rounding. Based on outstanding preferred stock as of January 14, 2019 and reflects the fixed dividend rate of each secur
Slide 26: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 4Q’17 $181.5 $154.6 $142.8 12.4% Impact of: Net Income 18.0 18.0 18.0 152 Preferred Stock Dividends (1.2) (1.2) (1.2) (10) Common Share Repurchases
Slide 27: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 3Q’18 $178.0 $151.2 $140.4 11.7% Impact of: Net Income 4.3 4.3 4.3 36 Preferred Stock Dividends (0.3) (0.3) (0.3) (3) Common Share Repurchases & Div
Slide 28: Common Equity Tier 1 Capital Ratio and Components
Common Equity Tier 1 Capital Ratio and Components ($MM) Common Equity Tier 1 Capital Ratio and Components(1) 12/31/2018(2) 9/30/2018 6/30/2018 3/31/2018 12/31/2017 Citigroup Common Stockholders' Equity(3) $177,928 $178,153 $181,243 $182,943 $181,671 Add: Qualifying noncontrolling interests 147 148 1
Slide 29: Supplementary Leverage Ratio; TCE Reconciliation
Supplementary Leverage Ratio; TCE Reconciliation ($MM, except per share amounts) Supplementary Leverage Ratio and Components(1) 4Q'18(2) 3Q'18 2Q'18 1Q'18 4Q'17 Common Equity Tier 1 Capital (CET1) $139,457 $140,428 $142,868 $144,128 $142,822 Additional Tier 1 Capital (AT1)(3) 18,864 19,449 19,134 19
Slide 30: Adjusted Results Reconciliation
Adjusted Results Reconciliation ($MM, except EPS) Citigroup 4Q'18 3Q'18 4Q'17 2018 2017 Reported Income Taxes $1,001 $1,471 $23,864 $5,357 $29,388 Impact of: (1) Tax Reform (94) - 22,594 (94) 22,594 Adjusted Income Taxes $1,095 $1,471 $1,270 $5,451 $6,794 Reported Net Income (Loss) $4,313 $4,622 $(1
Slide 31: FX Impact Reconciliation
FX Impact Reconciliation ($MM, except balance sheet items in $B) Citigroup 4Q'18 3Q'18 4Q'17 Latin America Consumer Banking 4Q'18 3Q'18 4Q'17 2018 2017 Reported EOP Assets $1,917 $1,925 $1,842 Reported Revenues $1,362 $1,670 $1,359 $5,760 $5,222 Impact of FX Translation - (6) (30) Impact of FX Trans