Slide 1: Fourth Quarter 2017 Earnings Review
Citi | Investor Relations On February 23, 2018, Citi announced that it was adjusting downward its fourth quarter and full year 2017 financial results, from those reported on January 16, 2018, due to an updated estimate for a one-time, non-cash charge of $22.6 billion, recorded within North America G
Slide 2: Overview
Overview 4Q’17 showed strong operating results and balanced franchise performance – Revenue growth and positive operating leverage in NA and International Consumer – Strong Investment Banking results and continued momentum in ICG accrual businesses Progress on key priorities in 2017 with focus on fu
Slide 3: Impact of Tax Reform
Impact of Tax Reform Estimated Impact on 4Q’17 and 2017 Results(1) ($MM, except EPS) As Estimated Impact Adjusted Reported of Tax Reform Results(2) 4Q’17 Net Income (Loss) $(18,299) $(22,000) $3,701 4Q’17 Diluted EPS $(7.15) $(8.43) $1.28 2017 Net Income (Loss) $(6,204) $(22,000) $15,796 2017 Dilute
Slide 4: Citigroup – Summary Financial Results
Citigroup – Summary Financial Results(1) ($MM, except EPS) 4Q'17 3Q'17 %r 4Q'16 %r 2017 %r Revenues $17,255 $18,173 (5)% $17,012 1% $71,449 2% Operating Expenses 10,083 10,171 (1)% 10,120 (0)% 41,237 (0)% 2017 efficiency Efficiency Ratio 58% 56% 59% 58% ratio improved by 156 bps Net Credit Losses 1,
Slide 5: Revenue and Efficiency Trends
Revenue and Efficiency Trends (As Reported) Citigroup GCB ICG Corp/Other Efficiency 59.3% 57.7% 55.5% 57.0% 55.0% Ratio 54.6% $69.9 $71.4 $35.7 $34.0 $32.7 $33.2 $31.5 $26.0 Revenues $18.0 +2% +4% +7% $10.0 $5.1 $3.1 $2.0 2016 2017 2016 2017 2016 2017 2016 2017 Operating Margin: +6% +6% +13% NM 5 No
Slide 6: Global Consumer Banking
Global Consumer Banking (Constant $MM) 4Q'17 QoQ %r YoY %r 2017 %r • Revenues Revenues $8,412 1% 4% $32,697 4% – 4Q’17 and 2017 revenues up 4% North America 5,180 (0)% 2% 20,262 3% YoY with growth across products in International 3,232 2% 7% 12,435 5% both North America and Expenses 4,521 3% 2%
Slide 7: North America Consumer Banking
North America Consumer Banking ($MM) 4Q'17 QoQ %r YoY %r 2017 %r • Revenues Revenues $5,180 (0)% 2% $20,262 3% – Retail Banking: Excluding mortgage, Retail Banking 1,347 (1)% 7% 5,257 1% revenues up 14% YoY driven by Mortgage 197 7% (22)% 751 (32)% continued growth in checking deposits Retail ex.
Slide 8: International Consumer Banking
International Consumer Banking (Constant $MM) 4Q'17 QoQ %r YoY %r 2017 %r • Revenues Revenues $3,232 2% 7% $12,435 5% – Latin America up 6% YoY reflecting Latin America 1,341 4% 6% 5,152 6% growth in loans and deposit volumes - Retail Banking 955 4% 7% 3,690 8% - Branded Cards 386 4% 4% 1,462 (0)%
Slide 9: 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'16 3Q'17 4Q'17 EOP 4Q'16 3Q'17 4Q'17 Loans $298.6 $300.9 $310.8 Loans $188.6 $187.9 $195.7 2.32% 2.34% 2.42% 2.63% 2.58% 2.63% 2.48% 2.04% 2.02% 1.87% 2.10% 2.24% 2.20% 2.26% 2
Slide 10: Institutional Clients Group
Institutional Clients Group ($MM) 4Q'17 QoQ %r YoY %r 2017 %r • Revenues Product Revenues CHECK – Total Banking (1): Up 11% YoY Total Banking $4,710 1% 11% $18,655 12% driven by continued strong - Treasury & Trade Solutions 2,189 2% 9% 8,473 7% momentum and solid performance - Investment Banking 1
Slide 11: Corporate / Other
Corporate / Other(1) ($MM) 4Q'17 QoQ %r YoY %r 2017 %r • Revenues Revenues $746 47% (13)% $3,085 (40)% – Down YoY driven by the wind- down of legacy assets Expenses 857 4% (24)% 3,786 (24)% Credit Costs (45) 10% NM (175) NM • Expenses – Down YoY reflecting the wind- EBT (66) 75% 73% (526) NM down of
Slide 12: 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 3.55% 3.53% 3.49% 3.45% 3.48% 3.44% 3.45% 3.43% 3.50% 2.92% 2.86% 2.86% 2.79% 2.74% 2.72% 2.72% 3.00% 2.63% 4Q’17 2017 YoY r YoY r $11.23 $11.17 $11.47 $11.2
Slide 13: Citigroup – Key Capital Metrics
Citigroup – Key Capital Metrics Common Equity Tier 1 Capital Ratio(1)(2) Supplementary Leverage Ratio(1)(2) Tangible Book Value / Share(1)(2) 12.8% 13.1% 13.0% 14.0% 12.3% 12.5% 12.6% 12.6% 12.3% 90.00 12.1% 12.0% 10.0% 80.00 7.4% 7.5% 7.4% 7.2% 7.3% 7.2% 7.1% 7.1% 8.0% 6.7% 70.00 6.0% 4.0% 60.00 $6
Slide 14: Conclusions
Conclusions Results showed broad-based progress across the franchise in 2017 – Revenue growth and positive operating leverage in both GCB and ICG franchises – Over 150 bps of improvement in efficiency ratio to just under 58% – Delivered 13% YoY EPS growth(1), including impact of common share buyback
Slide 15: Forward-looking statements
Certain statements in this presentation are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances.
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Slide 17: Appendix
Appendix Table of Contents 18. 2017 Returns Analysis 26. Equity & CET1 Capital Drivers (YoY) 19. Estimated FX Impact on Key P&L Metrics 27. Equity & CET1 Capital Drivers (QoQ) 20. Loan Loss Reserve Build / (Release) 28. Common Equity Tier 1 Capital Ratio and Components 21. Consumer Credit 29. Supple
Slide 18: 2017 Returns Analysis
2017 Returns Analysis(1) ($B) Average Average (3) Net Income GAAP ROA Allocated to Common Assets (bps) TCE(4) RoTCE GCB $4.6 $418 111 $36 12.9% ICG 11.0 1,358 81 82 13.4% (2) Corp / Other (1.1) 100 15 62 (1.7)% (2) Citigroup $14.6 $1,876 84 $180 8.1% Disallowed DTA(5) 29 - 29 - Business Results $14.
Slide 19: Estimated FX Impact on Key P&L Metrics
Estimated FX(1) Impact on Key P&L Metrics Year-over-Year Impact ($B) 4Q’17 3Q’17 2Q’17 1Q’17 4Q’16 Revenues $0.2 $0.1 $(0.1) $(0.2) $(0.4) Expenses 0.2 0.1 (0.1) (0.1) (0.3) Credit Costs 0.0 0.0 (0.0) (0.0) (0.1) Earnings Before Taxes $0.0 $0.0 $(0.0) $(0.0) $0.0 19 Note: Totals may not sum due to r
Slide 20: Loan Loss Reserve Build / (Release)
Loan Loss Reserve Build / (Release)(1) ($MM) $r 4Q’17 3Q’17 4Q’16 QoQ YoY NA Consumer $151 $460 $116 $(309) $35 International Consumer 24 21 45 3 (21) Global Consumer $175 $481 $161 $(306) $14 ICG 42 (208) (15) 250 57 Corp / Other (52) (79) (82) 27 30 Citigroup $165 $194 $64 $(29) $101 20 Note: Tota
Slide 21: Consumer Credit
Consumer Credit (Constant $B) 4Q'17 Loans Growth Growth 90+ DPD Ratio NCL Ratio ($B) (%) YoY % QoQ % 4Q'17 3Q'17 4Q'16 4Q'17 3Q'17 4Q'16 Korea 19.8 6.4% (1.2)% (1.1)% 0.2% 0.2% 0.2% 0.4% 0.2% 0.4% Singapore 12.4 4.0% 1.6% 1.6% 0.1% 0.1% 0.2% 0.3% 0.4% 0.4% Hong Kong 11.6 3.7% 13.4% 7.2% 0.1% 0.1% 0.
Slide 22: Regional Credit Portfolio
Regional Credit Portfolio (4Q’17 EOP in $B) Geographic Loan Distribution Loan Composition Commercial Banking $207 Mexico Korea 6% Mortgages 8% 5% Singapore 4% Personal & Other 24% Hong Kong 4% Cards 2% Taiwan 3% GCB $104 North America Other EM 63% 8% 26% 70% 30% Developed Asia 4% 24% 20% DM EM Hong
Slide 23: Consumer Drivers
Consumer Drivers GCB Digital Metrics(1) 4Q'17 3Q'17 2Q'17 1Q'17 4Q'16 YoY QoQ (MM) North America: Active Digital Customers 17.3 17.1 16.5 15.7 15.3 13% 1% Active Mobile Customers 9.4 9.2 8.6 8.0 7.8 21% 3% International: Active Digital Customers 6.9 6.7 6.3 6.2 6.1 13% 3% Active Mobile Customers 4.0
Slide 24: Institutional Drivers
Institutional Drivers ICG 4Q'17 3Q'17 2Q'17 1Q'17 4Q'16 YoY QoQ (Constant $B) EOP Deposits: 640 642 629 630 629 2% (0)% NA 296 290 280 287 283 5% 2% EMEA 174 173 174 170 175 (1)% 0% Latin America 25 25 26 27 26 (2)% 2% Asia 145 153 149 147 145 (1)% (6)% Average Loans: 328 320 315 306 308 6% 2% NA 15
Slide 25: Preferred Stock Dividend Schedule
Preferred Stock Dividend Schedule ($MM) 2016 2017 2018 1Q $210 $301 $272 2Q 322 320 318 3Q 225 272 270 4Q 320 320 318 Total $1,077 $1,213 $1,179 25 Note: Totals may not sum due to rounding. Based on outstanding preferred stock as of January 16, 2018. Includes impact of announced redemption of Series
Slide 26: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 4Q’16 $205.9 $179.0 $149.5 12.6% Impact of: Tax Reform(3) (22.0) (22.0) (6.0) (40) Net Income(3) 15.8 15.8 15.8 134 Preferred Stock Dividends (1.2)
Slide 27: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 3Q’17 $208.4 $181.3 $153.5 13.0% Impact of: Tax Reform(3) (22.0) (22.0) (6.0) (40) Net Income(3) 3.7 3.7 3.7 31 Preferred Stock Dividends (0.3) (0.3
Slide 28: Common Equity Tier 1 Capital Ratio and Components
Common Equity Tier 1 Capital Ratio and Components ($MM) Common Equity Tier 1 Capital Ratio and Components(1) 12/31/2017(2) 9/30/2017 6/30/2017 3/31/2017(3) 12/31/2016 Citigroup Common Stockholders' Equity(4) $182,265 $208,565 $210,950 $208,907 $206,051 Add: Qualifying noncontrolling interests 153 14
Slide 29: Supplementary Leverage Ratio; TCE Reconciliation
Supplementary Leverage Ratio; TCE Reconciliation ($MM, except per share amounts) Supplementary Leverage Ratio and Components(1) 4Q'17(2) 3Q'17 2Q'17 1Q'17(3) 4Q'16 Common Equity Tier 1 Capital (CET1) $142,810 $153,534 $155,174 $152,664 $149,516 Additional Tier 1 Capital (AT1)(4) 19,509 19,315 19,955
Slide 30: Adjusted Results Reconciliation
Adjusted Results Reconciliation ($MM, except otherwise noted) Citigroup 4Q'17 3Q'17 4Q'16 2017 2016 Reported Income Taxes $23,270 $1,866 $1,509 $28,794 $6,444 Impact of: Tax Reform 22,000 - - 22,000 - Adjusted Income Taxes $1,270 $1,866 $1,509 $6,794 $6,444 Reported Net Income (Loss) $(18,299) $4,13
Slide 31: FX Impact Reconciliation
FX Impact Reconciliation ($MM, except balance sheet items in $B) Citigroup 4Q'17 3Q'17 4Q'16 2017 2016 Latin America Consumer Banking 4Q'17 3Q'17 4Q'16 2017 2016 Reported EOP Assets $1,843 $1,889 $1,792 $1,843 $1,792 Reported Revenues $1,341 $1,370 $1,212 $5,152 $4,922 Impact of FX Translation - 3 4