Slide 1: Second Quarter 2018 Earnings Review
Citi | Investor Relations Second Quarter 2018 Earnings Review July 13, 2018
Slide 2: Overview
Overview Solid operating results in 2Q’18 – Revenue growth in all regions and across products in Consumer – Continued momentum in Institutional accrual businesses and strong results in Equities – Delivered efficiency ratio of 58.0%, ROA of 94 bps and RoTCE of 10.8%(1) – Broad based loan growth acros
Slide 3: Citigroup – Summary Financial Results
Citigroup – Summary Financial Results ($MM, except EPS) 2Q'18 1Q'18 %r 2Q'17 %r 1H'18 %r Revenues $18,469 $18,872 (2)% $18,155 2% $37,341 2% Operating Expenses 10,712 10,925 (2)% 10,760 (0)% 21,637 1% Efficiency Ratio 58.0% 57.9% 59.3% 57.9% Operating Margin 7,757 7,947 (2)% 7,395 5% 15,704 4% Net C
Slide 4: Citigroup – Last Twelve Months Comparison
Citigroup – Last Twelve Months Comparison ($B, except EPS) LTM’18 LTM’17 YoY % r GCB regions: (Constant $(2)) GCB Revenue $33.6 $32.1 5% North America: 2% Asia: 6% Latin America: 7% ICG Revenue $37.3 $35.7 4% GCB: 4% Corp / Other Rev $2.4 $3.9 (39)% ICG businesses: Accrual(3): 12% Citi Revenue $73.3
Slide 5: Global Consumer Banking
Global Consumer Banking (Constant $MM) 2Q'18 QoQ % r YoY % r 1H'18 %r • Revenues Revenues $8,250 (1)% 3% $16,683 4% North America 5,004 (3)% 1% 10,161 3% – Up 3% YoY with growth across products and regions International 3,246 3% 6% 6,522 7% Expenses 4,655 1% 3% 9,336 3% • Expenses North Americ
Slide 6: North America Consumer Banking
North America Consumer Banking ($MM) QoQ % r YoY % r %r 2Q'18 1H'18 • Revenues Revenues $5,004 (3)% 1% $10,161 3% Retail Banking 1,348 3% 4% 2,655 4% – Retail Banking: Excluding mortgage, Mortgage 140 (5)% (25)% 289 (22)% revenues up 9% YoY driven by Retail ex. Mortgage 1,208 4% 9% 2,366 8% contin
Slide 7: International Consumer Banking
International Consumer Banking (Constant $MM) 2Q'18 QoQ % r YoY % r 1H'18 %r • Revenues Revenues $3,246 3% 6% $6,522 7% – Latin America up 11% YoY reflecting Latin America 1,381 7% 11% 2,728 9% growth in cards as well as growth in retail - Retail Banking 999 8% 12% 1,965 9% loans and deposits - Br
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 2Q'17 1Q'18 2Q'18 EOP 2Q'17 1Q'18 2Q'18 Loans $296.3 $299.0 $306.0 Loans $186.4 $187.1 $192.4 2.63% 2.58% 2.63% 2.77% 2.72% 2.30% 2.28% 2.42% 2.48% 2.10% 2.24% 2.20% 2.26% 2.15% 2
Slide 9: Institutional Clients Group
Institutional Clients Group ($MM) 2Q'18 QoQ % r YoY % r 1H'18 %r • Revenues Product Revenues – Total Banking(1): Up 6% YoY driven Total Banking $5,195 8% 6% $10,018 6% by continued strong momentum and - Treasury & Trade Solutions 2,336 3% 11% 4,604 9% solid performance in TTS, Private - Investment
Slide 10: Corporate / Other
Corporate / Other ($MM) 2Q'18 QoQ % r YoY % r 1H'18 %r • Revenues Revenues $528 (11)% (20)% $1,119 (40)% – Down YoY driven by wind-down of legacy assets Expenses 599 (19)% (40)% 1,340 (37)% • Expenses Credit Costs (118) NM 11% (125) (56)% – Down YoY reflecting the wind- EBT 47 NM NM (96) 49% down of
Slide 11: 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 0.04 3.54% 3.60% 3.51% 3.47% 3.48% 3.46% 0.035 2.76% 2.75% 2.74% 2Q’18 0.03 2Q’18 2.65% 2.64% 2.70% QoQ% r YoY% r $11.18 $11.36 $11.19 $11.67 0.025 4% 6% $10.87 $1
Slide 12: Citigroup – Key Capital Metrics
Citigroup – Key Capital Metrics ($B, except TBV) Common Equity Tier 1 Capital Ratio (1) Supplementary Leverage Ratio (1) Tangible Book Value / Share(1) 15 . 0% 12.8% 13.1% 13.0% 12.5% 12.6% 12.6% 12.4% 90 . 00 12.1% 12.1% 13 . 0% 11 . 0% 80 . 00 9.0% 7.5% 7.4% 7.2% 7.3% 7.2% 7.1% 6.7% 6.7% 6.6% 7.0%
Slide 13: Conclusions
Conclusions Results showed continued momentum across the franchise in 1H’18 – Revenue growth of 4% in both Consumer(1) and Institutional businesses – Positive operating leverage and continued credit discipline resulting in EBT growth – Delivered 26% YoY EPS growth in 1H’18, including impact of share
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: CITI
CITI
Slide 16: Appendix
Appendix Table of Contents 17. 1H’18 Returns Analysis 25. Preferred Stock Dividend Schedule 18. Citigroup – LTM Efficiency Ratio 26. Equity & CET1 Capital Drivers (YoY) 19. Estimated FX Impact on Key P&L Metrics 27. Equity & CET1 Capital Drivers (QoQ) 20. Consumer Credit 28. Common Equity Tier 1 Cap
Slide 17: 1H’18 Returns Analysis
1H’18 Returns Analysis ($B) Average Average (2) Net Income GAAP ROA Allocated to Common Assets (bps) TCE(3) RoTCE GCB $2.7 $420 128 $35 15.4% ICG 6.5 1,397 94 85 15.5% (1) Corp / Other (0.7) 94 (21) 35 (4.0)% (1) Citigroup $8.5 $1,911 96 $155 11.1% Note: Totals may not sum due to rounding. (1) Repre
Slide 18: Citigroup – LTM Efficiency Ratio
Citigroup – LTM Efficiency Ratio LTM Efficiency Ratio 2Q’18 1H’18 LTM’18 Operating Efficiency 58.0% 57.9% 57.9% YoY r (bps) (127) (88) (133) 59.9% 59.8% YoY r ex FX (bps) (136) (118) (161) 59.3% 59.2% 58.5% 58.3% 58.2% 57.9% 3Q'16 (1) 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 Note: LTM: Last Tw elve
Slide 19: Estimated FX Impact on Key P&L Metrics
Estimated FX(1) Impact on Key P&L Metrics ($B) Year-over-Year Impact 2Q’18 1Q’18 4Q’17 3Q’17 2Q’17 Revenues $(0.1) $0.3 $0.2 $0.1 $(0.1) Expenses (0.0) 0.3 0.2 0.1 (0.1) Credit Costs (0.0) 0.0 0.0 0.0 (0.0) Earnings Before Taxes $(0.0) $0.0 $0.0 $0.0 $(0.0) 19 Note: Totals may not sum due to roundin
Slide 20: Consumer Credit
Consumer Credit (Constant $B) 2Q'18 Loans Growth 90+ DPD Ratio NCL Ratio ($B) (% ) YoY % 2Q'18 1Q'18 2Q'17 2Q'18 1Q'18 2Q'17 Korea 18.9 6.2% (2.2)% 0.2% 0.1% 0.2% 0.5% 0.4% 0.3% Singapore 12.3 4.0% 0.3% 0.1% 0.1% 0.1% 0.4% 0.3% 0.4% Hong Kong 11.8 3.8% 12.3% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% Australia 1
Slide 21: Regional Credit Portfolio
Regional Credit Portfolio (2Q’18 EOP in $B) Geographic Loan Distribution Loan Composition Commercial Banking Mexico Korea 6% $203 Mortgages 8% 4% Singapore 4% Personal & Other 25% Hong Kong 4% Cards 2% GCB Taiwan 3% $103 North America Other EM 63% 8% 27% 69% 29% Developed Asia 3% 24% 20% DM EM Hong
Slide 22: Consumer Drivers
Consumer Drivers (1) 2Q'18 1Q'18 4Q'17 3Q'17 2Q'17 YoY QoQ GCB Digital Metrics (MM) North America: Active Digital Customers 17.8 17.7 17.5 17.1 16.5 8% 0% Active Mobile Customers 10.1 9.9 9.7 9.2 8.6 16% 1% International: Active Digital Customers 9.5 9.2 8.9 8.5 8.2 16% 3% Active Mobile Customers 6.
Slide 23: Consumer Drivers Continued
Consumer Drivers Continued Digital / Mobile Users(1) Agent Contact Rate (2) (MM) Digital Users Mobile Users 42% 27.3 (8)% 24.7 1.41 19.2 82% 1.36 16.2 1.31 13.0 8.9 2Q'16 2Q'17 2Q'18 2Q'16 2Q'17 2Q'18 LTM'16 LTM'17 LTM'18 E-Statement Penetration(3) E-Payment Penetration (4) ~800 bps 69% 72% ~1,000 b
Slide 24: Institutional Drivers
Institutional Drivers ICG 2Q'18 1Q'18 4Q'17 3Q'17 2Q'17 YoY QoQ (Constant $B) EOP Deposits: 676 653 632 634 621 9% 3% NA 308 295 296 290 280 10% 5% EMEA 187 182 170 169 170 10% 3% Latin America 26 24 24 24 25 4% 7% Asia 155 152 142 151 147 5% 1% Average Loans: 346 336 328 320 314 10% 3% NA 165 160 1
Slide 25: Preferred Stock Dividend Schedule
Preferred Stock Dividend Schedule ($MM) 2017 2018 2019 1Q $301 $272 $270 2Q 320 318 313 3Q 272 270 270 4Q 320 313 313 Total $1,213 $1,174 $1,167 25 Note: Totals may not sum due to rounding. Based on outstanding preferred stock as of July 13, 2018.
Slide 26: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 2Q’17 $210.8 $183.4 $155.2 13.1% Impact of: Tax Reform(3) (22.6) (22.6) (6.0) (36) Net Income (3) 16.9 16.9 16.9 144 Preferred Stock Dividends (1.2)
Slide 27: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 1Q’18 $182.8 $155.6 $144.1 12.1% Impact of: Net Income 4.5 4.5 4.5 38 Preferred Stock Dividends (0.3) (0.3) (0.3) (3) Common Share Repurchases & Div
Slide 28: Common Equity Tier 1 Capital Ratio and Components
Common Equity Tier 1 Capital Ratio and Components ($MM) Common Equity Tier 1 Capital Ratio and Components(1) 6/30/2018(2) 3/31/2018 12/31/2017 9/30/2017 6/30/2017 Citigroup Common Stockholders' Equity(3) $181,243 $182,943 $181,671 $208,565 $210,950 Add: Qualifying noncontrolling interests 145 140 15
Slide 29: Supplementary Leverage Ratio; TCE Reconciliation
Supplementary Leverage Ratio; TCE Reconciliation ($MM, except per share amounts) Supplementary Leverage Ratio and Components (1) 2Q'18(2) 1Q'18 4Q'17 3Q'17 2Q'17 Common Equity Tier 1 Capital (CET1) $142,868 $144,128 $142,822 $153,534 $155,174 Additional Tier 1 Capital (AT1)(3) 19,098 19,362 19,555 1
Slide 30: Adjusted Results and FX Impact Reconciliation
Adjusted Results and FX Impact Reconciliation ($MM, except balance sheet items in $B and per share amounts) Citigroup 2Q'18 1Q'18 4Q'17 3Q'17 2Q'17 1Q'17 Global Consumer Banking 2Q'18 1Q'18 2Q'17 1H'18 1H'17 Reported Net Interest Revenue $11,665 $11,172 $11,313 $11,535 $11,258 $10,955 Reported Retai