Slide 1: First Quarter 2017 Earnings Review
Citi | Investor Relations First Quarter 2017 Earnings Review April 13, 2017
Slide 2: Overview
Overview First quarter showed continued momentum across the franchise – Revenue growth YoY in both Consumer and Institutional businesses – Strong performance in Markets and Investment Banking, continued momentum in TTS – Growth in loans and deposits, with continued expense discipline Focus on furthe
Slide 3: Citigroup – Summary Financial Results
Citigroup – Summary Financial Results ($MM, except EPS) 1Q'17 4Q'16 %r 1Q'16 %r Revenues $18,120 $17,012 7% $17,555 3% Operating Expenses 10,477 10,120 4% 10,523 (0)% Efficiency Ratio 58% 59% 60% Net Credit Losses 1,709 1,696 1% 1,724 (1)% (1) Net LLR Build / (Release) (77) 64 NM 233 NM PB&C 30 32 (
Slide 4: North America Consumer Banking
North America Consumer Banking ($MM) 1Q'17 4Q'16 %r 1Q'16 %r • Revenues Revenues $4,944 $5,059 (2)% $4,830 2% – Retail Banking: Excluding mortgage, Retail Banking 1,256 1,263 (1)% 1,290 (3)% revenues up 5% YoY driven by Mortgage 181 252 (28)% 264 (31)% continued growth in average loans, Retail ex.
Slide 5: International Consumer Banking
International Consumer Banking (in Constant $MM) 1Q'17 4Q'16 %r 1Q'16 %r • Revenues Revenues $2,873 $2,937 (2)% $2,781 3% – Latin America up 4% YoY driven by 8% Latin America 1,151 1,220 (6)% 1,107 4% growth in retail banking, reflecting (1) Asia 1,722 1,717 0% 1,674 3% continued growth in avera
Slide 6: 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'16 4Q'16 1Q'17 EOP 1Q'16 4Q'16 1Q'17 Loans $270.3 $297.2 $291.3 Loans $160.9 $188.6 $181.9 2.58% 2.63% 2.22% 1.99% 2.05% 2.04% 2.02% 2.24% 2.21% 2.26% 2.32% 2.34% 2.07% 2.42% 1
Slide 7: Institutional Clients Group
Institutional Clients Group ($MM) 1Q'17 4Q'16 %r 1Q'16 %r • Revenues Product Revenues CHECK – Total Banking (1): Up 14% YoY Total Banking $4,467 $4,259 5% $3,908 14% driven by continued solid - Treasury & Trade Solutions 2,075 2,009 3% 1,903 9% performance in TTS and Private - Investment Banking 1
Slide 8: Corporate / Other
Corporate / Other ($MM) 1Q'17 4Q'16 %r 1Q'16 %r • Revenues Revenues $1,177 $861 37% $1,946 (40)% – Down YoY due to legacy asset runoff, divestiture activity and Expenses 1,117 1,130 (1)% 1,250 (11)% lower revenues from hedging activities Credit Costs 52 (21) NM 170 (69)% EBT 8 (248) NM 526 (98)% • E
Slide 9: 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 3.49% 3.46% 3.40% 3.41% 3.40% 3.50% 2.92% 2.86% 2.86% 2.79% 2.74% 3.00% 1Q’17 1Q’17 QoQ% r YoY% r $11.17 $11.10 $11.40 $11.20 $10.86 2.50% (3)% (3)% 0.62 0.5
Slide 10: Citigroup – Key Capital Metrics
Citigroup – Key Capital Metrics Common Equity Tier 1 Capital Ratio(1) Supplementary Leverage Ratio(1) Tangible Book Value / Share(1) 90.00 14.0% 12.5% 12.6% 12.6% 12.8% 12.1% 12.3% 85.00 11.4% 11.7% 11.1% 12.0% 80.00 10.0% 75.00 7.4% 7.5% 7.4% 7.2% 7.3% 6.9% 7.1% 8.0% 70.00 6.4% 6.7% 65.00 6.0% 60.0
Slide 11: Conclusions
Conclusions Results showed continued momentum across the franchise – Revenue growth in both Consumer and Institutional businesses – Continued credit and expense discipline – Delivered 15% YoY EPS growth(1) excluding episodic items in 1Q’17 Continued building a stronger institution – Common Equity Ti
Slide 12: Forward-looking statements
Certain statements in this presentation are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances.
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Slide 14: Appendix
Appendix Table of Contents 15. LTM’17 Returns Analysis 23. Capital Management & DTA Utilization (QoQ) 16. Estimated FX Impact on Key P&L Metrics 24. Equity & CET1 Capital Drivers (YoY) 17. Loan Loss Reserve Build / (Release) 25. Equity & CET1 Capital Drivers (QoQ) 18. Consumer Credit 26. Common Equi
Slide 15: LTM’17 Returns Analysis
LTM’17 Returns Analysis ($B) Average Average (2) Net Income GAAP ROA Allocated to Common Assets (bps) TCE(3) RoTCE GCB $4.8 $404 118 $36 13.2% ICG 10.6 1,310 81 80 13.3% (1) Corp / Other (1.0) 108 13 67 (1.5)% (1) Citigroup $14.3 $1,822 85 $183 7.8% Disallowed DTA(4) 28 - 28 - Business Results $14.3
Slide 16: Estimated FX Impact on Key P&L Metrics
Estimated FX(1) Impact on Key P&L Metrics Year-over-Year Impact ($B) 1Q’17 4Q’16 3Q’16 2Q’16 1Q’16 Revenues $(0.2) $(0.4) $(0.2) $(0.5) $(0.6) Expenses (0.1) (0.3) (0.2) (0.3) (0.4) Cost of Credit (0.0) (0.1) (0.0) (0.1) (0.1) Earnings Before Taxes $(0.0) $0.0 $0.0 $(0.1) $(0.1) 16 Note: Totals may
Slide 17: Loan Loss Reserve Build / (Release)
Loan Loss Reserve Build / (Release)(1) ($MM) $r 1Q’17 4Q’16 1Q’16 QoQ YoY NA Consumer $159 $116 $79 $43 $80 International Consumer 24 45 7 (21) 17 Global Consumer $183 $161 $86 $22 $97 ICG (230) (15) 179 (215) (409) Corp / Other (30) (82) (32) 52 2 Citigroup $(77) $64 $233 $(141) $(310) 17 Note: Tot
Slide 18: Consumer Credit
Consumer Credit (in Constant $B) 1Q'17 Loans Growth 90+ DPD Ratio NCL Ratio ($B) (%) YoY % 1Q'17 4Q'16 1Q'16 1Q'17 4Q'16 1Q'16 Korea 19.5 6.7% (4.3)% 0.2% 0.2% 0.2% 0.4% 0.4% 0.4% Singapore 12.0 4.1% (8.5)% 0.1% 0.2% 0.1% 0.5% 0.4% 0.3% Australia 10.8 3.7% 1.0% 0.7% 0.6% 0.7% 1.1% 1.1% 1.2% Hong Kon
Slide 19: Regional Credit Portfolio
Regional Credit Portfolio (1Q’17 EOP in $B) Geographic Loan Distribution Loan Composition $193 Commercial Banking Mexico Korea 7% 5% Mortgages 9% Singapore 4% 26% Personal & Other Hong Kong 4% 2% Cards GCB Taiwan 3% $99 North America Other EM 62% 25% 8% 68% 31% Developed Asia 4% 24% 20% DM EM Hong K
Slide 20: Drivers in Constant Dollars
Drivers in Constant Dollars (in Constant $B) Asia GCB (1) 1Q'17 4Q'16 3Q'16 2Q'16 1Q'16 YoY QoQ Cards Purchase Sales 19.2 19.7 18.6 18.7 18.4 4% (3)% Cards Average Loans 18.1 17.4 17.3 17.2 17.6 3% 4% Cards EOP Loans 18.3 18.1 17.5 17.7 17.5 5% 1% RB Average Loans 65.1 64.8 66.7 67.2 68.5 (5)% 0% RB
Slide 21: Drivers in Constant Dollars (cont’d)
Drivers in Constant Dollars (cont’d) (in Constant $B) ICG 1Q'17 4Q'16 3Q'16 2Q'16 1Q'16 YoY QoQ (1) TTS EOP Deposits: 417 416 412 404 412 1% 0% NA 200 198 193 191 188 7% 1% EMEA 94 96 99 94 98 (4)% (2)% Latin America 17 17 16 16 19 (10)% 2% Asia 105 105 105 102 106 (1)% 0% ICG Average Loans: 302 304
Slide 22: Preferred Stock Dividend Schedule
Preferred Stock Dividend Schedule ($MM) 2016 2017 2018 1Q $210 $301 $272 2Q 322 320 320 3Q 225 272 272 4Q 320 320 320 Total $1,077 $1,213 $1,184 22 Note: Totals may not sum due to rounding. Based on outstanding preferred stock as of April 13, 2017.
Slide 23: Capital Management & DTA Utilization (QoQ)
Capital Management & DTA Utilization (QoQ) ($B) CET1 Capital and Ratio(1) DTA Balance Drivers $4.1 $0.6 $0.8 $152.8 $149.5 $(2.2) 12.6% 12.8% $(0.8)B $46.7 $45.9 $(0.5) $(0.3) (3) (3) 4Q'16 Net DTA Common OCI & 1Q'17 4Q'16 Earnings OCI & 1Q'17 Income Share Other(2) Driven Other Repurchases & Dividen
Slide 24: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 1Q’16 $209.8 $183.7 $153.0 12.3% Impact of: Net Income 15.5 15.5 15.5 125 Preferred Dividends (1.2) (1.2) (1.2) (9) Common Share Repurchases & (11.4
Slide 25: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 4Q’16 $205.9 $179.0 $149.5 12.6% Impact of: Net Income 4.1 4.1 4.1 34 Preferred Dividends (0.3) (0.3) (0.3) (3) Common Share Repurchases & (2.2) (2.
Slide 26: Common Equity Tier 1 Capital Ratio and Components
Common Equity Tier 1 Capital Ratio and Components ($MM) Common Equity Tier 1 Capital Ratio and Components(1) 3/31/2017(2) 12/31/2016 9/30/2016 6/30/2016 3/31/2016 (3) Citigroup Common Stockholders' Equity $209,063 $206,051 $212,506 $212,819 $209,947 Add: Qualifying noncontrolling interests 133 129 1
Slide 27: Supplementary Leverage Ratio; TCE Reconciliation
Supplementary Leverage Ratio; TCE Reconciliation ($MM, except per share amounts) Supplementary Leverage Ratio and Components(1) 1Q'17(2) 4Q'16 3Q'16 2Q'16 1Q'16 Common Equity Tier 1 Capital (CET1) $152,835 $149,516 $155,132 $154,534 $153,023 (3) Additional Tier 1 Capital (AT1) 19,756 19,874 19,628 1
Slide 28: FX Impact and Other Reconciliations
FX Impact and Other Reconciliations ($MM, except balance sheet items in $B) Citigroup 1Q'17 4Q'16 1Q'16 International Consumer Banking 1Q'17 4Q'16 1Q'16 Reported EOP Assets $1,822 $1,792 $1,801 Reported Revenues $2,873 $2,908 $2,884 Impact of FX Translation - 20 (21) Impact of FX Translation - 29 (1