Slide 1: Earnings Results Presentation Third Quarter 2023
October 13, 2023 Earnings Results Presentation Third Quarter 2023
Slide 2: Third Quarter Results Snapshot
Third Quarter Results Snapshot Revenues Net Income EPS 3Q23 $20.1 billion 3Q23 $3.5 billion 3Q23 $1.63 / $1.52 ex-div.(1) vs. 3Q22 9% vs. 3Q22 2% vs. 3Q22 - RoTCE(2) CET1 Capital Ratio(3) Tangible Book Value Per Share(4) 3Q23 7.7% / 7.2% ex-div.(1) 3Q23 13.5% 3Q23 $86.90 3Q22 8.2% 3Q22 12.3% vs. 3Q2
Slide 3: Progress Against Our Priorities in Third Quarter
Progress Against Our Priorities in Third Quarter Transformation Strategic Execution Culture and Talent ✓ Continuing to execute with urgency on our Strategy: ✓ Announced consequential changes to simplify Transformation ✓ Significant momentum in 24/7 USD Clearing with ✓ Recent examples of progress inc
Slide 4: Financial Results Overview
Financial Results Overview Financial Results 3Q 2023 Financial Overview Highlights ($ in MM, except EPS) 3Q23 % Δ QoQ % Δ YoY YTD'23 % Δ YoY • Revenues Increased 9% YoY (10% ex-divestiture-related impacts(4)), as growth in Services, Cards and Markets was partially offset by revenue Net Interest Inco
Slide 5: 3Q23 QoQ and YoY Expenses and Key Investment Themes
3Q23 QoQ and YoY Expenses and Key Investment Themes ($ in B) Transformation and Technology Up ~6% Total Reported YoY and flat QoQ Up ~6% Ex-Divestiture Impacts(1) YoY and down 1% QoQ Investment Themes $13.6 $13.5 1 0.1 Platform and Process Simplification 0.1 $12.7 Reducing complexity and risk throug
Slide 6: Net Interest Income, Average Loans and Deposits
Net Interest Income, Average Loans and Deposits ($ in B) Net Interest Income 2.41% 2.48% 2.49% 3Q23 3Q23 2.31% 2.39% QoQ D YoY D Citigroup NIM $13.27 $13.35 $13.90 $13.83 $(0.07) $1.27 $12.56 1.49 1.47 1.98 1.58 $(0.40) $0.35 1.23 Markets(1) 11.34 11.78 11.88 11.92 12.25 $0.33 $0.92 Ex-Markets 3Q22
Slide 7: Consumer and Corporate Credit Overview
Consumer and Corporate Credit Overview We maintain over $20B of total reserves and a reserves-to-funded loans ratio of nearly 2.7% ($ in B) US Cards Loans Corporate Lending Exposure EOP Loans by Segment EOP Loans by FICO Score(1) By Region By Grade Rating Latin America 8% In our US cards In our ICG
Slide 8: Capital and Balance Sheet Overview
Capital and Balance Sheet Overview ($ in B, except per share data) Risk-based Capital Metrics(1) End of Period Assets 3Q22 2Q23 3Q23 YoY $2,381 $2,424 $2,368 (1)% CET1 Capital $145 $154 $156 Cash 300 297 254 (15)% Standardized RWA 1,180 1,153 1,153 Investments, net 507 509 - CET1 Capital Ratio - Sta
Slide 9: Standardized CET1 Ratio Overview
Standardized CET1 Ratio Overview 3Q23 QoQ Standardized CET1 Ratio Walk CET1 Standardized Regulatory Requirement and Target Key drivers resulting in CET1 Capital ratio of 13.5%(1) • Well capitalized today with a CET1 Capital ratio of 13.5%, ~120bps above the 4Q23 regulatory requirement including a 10
Slide 10: Institutional Clients Group Results
Institutional Clients Group Results Institutional Clients Group Results Institutional Clients Group Highlights ($ in MM) 3Q23 % Δ QoQ % Δ YoY • Revenues Up 12% YoY (15% YoY ex-FX(5)), driven by strength across Net Interest Income $5,494 (2)% 20% Services, Markets and Banking Non-Interest Revenue 5,1
Slide 11: ICG Revenue Items and Selected Business Drivers and Statistics
ICG Revenue Items and Selected Business Drivers and Statistics Revenues 3Q23 Highlights ($ in MM) 3Q23 % Δ QoQ % Δ YoY Services Net Interest Income $2,607 8% 17% Non-interest Revenue 984 (9)% 1% • Treasury and Trade Solutions revenues were up 12% YoY (17% YoY ex-FX(6)), Treasury and Trade Solutions
Slide 12: Personal Banking and Wealth Management Results
Personal Banking and Wealth Management Results Personal Banking and Wealth Management Results Personal Banking and Wealth Management Highlights ($ in MM) 3Q23 % Δ QoQ % Δ YoY • Revenues Up 10% YoY, driven by an increase in net interest income as well as Net Interest Income $6,356 7% 9% non-interest
Slide 13: PBWM Revenues Items and Selected Business Drivers and Statistics
PBWM Revenues Items and Selected Business Drivers and Statistics Revenues 3Q23 Highlights ($ in MM) 3Q23 % Δ QoQ % Δ YoY • Branded Cards revenues up 12% YoY, driven by higher net interest income, Branded Cards $2,538 8% 12% with interest-earning balances up 15% Retail Services 1,731 5% 21% Retail Ba
Slide 14: Legacy Franchises Results
Legacy Franchises Results Legacy Franchises Results Legacy Franchises Highlights ($ in MM) 3Q23 % Δ QoQ % Δ YoY • Revenues Down (13)% YoY, largely driven by the difference in one-time gain Net Interest Income $1,279 (5)% (8)% on sale impacts in the Asia consumer businesses and reductions from closed
Slide 15: Corporate / Other Results
Corporate / Other Results Corporate / Other Results Corporate / Other Highlights ($ in MM, unless otherwise noted) 3Q23 % Δ QoQ % Δ YoY • Revenues Higher revenues YoY, largely driven by higher net revenues from Net Interest Income $699 (28)% (9)% the absence of the negative mark-to-market on certain
Slide 16: Full Year 2023 Guidance
Full Year 2023 Guidance FY 2023 • Full year 2023 revenues: $78 - $79 billion, excluding 2023 divestiture-related impacts(1,2,3) Revenue • Full year 2023 net interest income, excluding Markets: Increasing from ~$46+ billion to $47.5+ billion(2) Expenses • Full year 2023 expenses: ~$54 billion, exclud
Slide 17: uncertainty and changes in circumstances. These statements are not guarantees of future results or
- uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results and capital and other financial condition may differ materially from those included in these statements due to a business and middle-market operations in Mexico and other
Slide 18: Slide 18
Slide 19: New Financial Reporting Structure As Of End Of 4Q23
New Financial Reporting Structure As Of End Of 4Q23 New Citigroup Reportable Operating Segments Global Wealth US Personal Services Markets Banking Management Banking Treasury & Trade Fixed Income Investment Private Bank Branded Cards Solutions Banking Equities Wealth at Work Retail Services Securiti
Slide 20: Timeline and Next Steps
Timeline and Next Steps 2H23 4Q23 Earnings • Announce organizational and leadership • Provide historical financials for the new changes segment and reporting structure • Align all management and operations with • Provide 2024 guidance for revenue and new structure expense • Implement segment reporti
Slide 21: Financial Summary of Businesses
Financial Summary of Businesses ($ in B) YTD'23 ICG PBWM Corp / Other Legacy Franchises Total $ in billions $ YoY Δ (%) $ YoY Δ (%) $ YoY Δ (%) $ YoY Δ (%) $ YoY Δ (%) Net Interest Income $16.1 25% $18.3 9% $2.8 NM $3.9 (10)% $41.1 16% Non-Interest Revenue 16.2 (16)% 1.4 3% (0.7) (8)% 3.1 50% 19.9 (
Slide 22: Legacy Franchise: P&L Contribution And Estimated Timelines
Legacy Franchise: P&L Contribution And Estimated Timelines ($ in B) Contribution to P&L (1) (1) (1) 2021(1) 2022(1) 3Q22'YTD 3Q23'YTD 3Q23 Status Revenue Expenses Revenue Expenses Revenue Expenses Revenue Expenses Revenue Expenses Exit Markets $1.9 $2.1 $2.9 $2.1 $2.3 $1.6 $2.2 $1.2 $0.5 $0.4 In Pro
Slide 23: 3Q23 Credit Portfolio by Segment and Geography
3Q23 Credit Portfolio by Segment and Geography (3Q23 EOP $ in B) ICG PBWM Legacy Franchises Hong Kong Brazil Singapore Hong Kong Singapore Emerging 3% 5% 3% 6% 5% China EMEA Geographic Loan Distribution Mexico EMEA 2% 4% North 3% 3% Developed China AmericaKorea EMEA 2% 7% 16% 20% Other EM 16% North
Slide 24: Credit Trends for Branded Cards and Retail Services
Credit Trends for Branded Cards and Retail Services ($ in B) Branded Cards Retail Services Pre Covid EOP 3Q22 2Q23 3Q23 Pre Covid EOP 3Q22 2Q23 3Q23 Normalized Normalized Loans $93.7 $103.0 $105.2 Loans $46.7 $50.0 $50.5 NCL Rate: NCL Rate: 3.00-3.25% 5.00 5.50% 4.46% 4.53% 90+DPD NCL 90+DPD NCL 4.0
Slide 25: 3Q23 Deposit Diversification and Stability
3Q23 Deposit Diversification and Stability High-quality deposit base largely consisting of stickier deposits within our TTS Business (3Q23 EOP $ in B) Deposits by Business Treasury and Trade Solutions (TTS) $2,368 Legacy, • Deposits are a byproduct of the operational products and services we provide
Slide 26: Historical Average Deposit Growth
Historical Average Deposit Growth ($ in B) Total CAGR: 5.9% TTS CAGR: 6.6% 1,343 1,370 1,361 1,363 1,321 1,334 1,323 1,316 1,338 1,315 1,305 1,304 1,268 104 82 79 107 100 94 1,234 110 93 98 123 122 117 118 1,090 1,115 116 Total 1,017 1,040 1,066 310 323 329 319 320 323 318 986 1,006 117 281 289 297
Slide 27: 3Q23 Liquidity Coverage Ratio
3Q23 Liquidity Coverage Ratio ($ in B) Average LCR and Historical Trajectory (30-Day Stress) EOP Available Liquidity Resources(1) $569 LCR 3Q22 2Q23 Ratio 117% 119% $485 $937 $176 Comprised of Other Liquidity unencumbered securities LCR Resources = $379 and unused borrowing 117% $203 capacity +$84 c
Slide 28: Tangible Common Equity Reconciliation and Citigroup Returns
Tangible Common Equity Reconciliation and Citigroup Returns ($ in MM, except per share amounts) Tangible Common Equity and Tangible Book Value Per Share Return on Tangible Common Equity (RoTCE) 3Q23 2Q23 3Q22 3Q23 YTD'23 Citigroup Net Income $3,546 $11,067 Common Stockholders' Equity $190,008 $188,4
Slide 29: FX Impact
FX Impact ($ in MM) Total Citigroup ICG Foreign currency (FX) translation impact(1) 3Q23 2Q23 3Q22 QoQ YoY Foreign currency (FX) translation impact(1) 3Q23 2Q23 3Q22 QoQ YoY Total Revenues - as Reported 20,139 19,436 18,508 4% 9% ICG Revenues - as reported 10,644 10,441 9,468 2% 12% Impact of FX tra
Slide 30: Reconciliation of Adjusted Results
Reconciliation of Adjusted Results Total Citigroup ($ in MM) 3Q23 2Q23 3Q22 % Δ QoQ % Δ YoY Total Citigroup Revenues - As Reported $20,139 $19,436 $18,508 4% 9% Less: Total Divestiture Impact on Revenues(1) 396 (6) 614 Total Citigroup Revenues, Excluding Divestiture Impacts $19,743 $19,442 $17,894 2
Slide 31: Reconciliation of Adjusted Results (cont.)
Reconciliation of Adjusted Results (cont.) ICG ($ in MM) 3Q23 2Q23 3Q22 % Δ QoQ % Δ YoY Total Banking Revenues - As Reported $1,449 $1,167 $1,223 24% 18% Less: Gain/(loss) on loan hedges(1) (47) (66) (56) Total Banking Revenues - Excluding Gain/(loss) on loan hedges $1,496 $1,233 $1,279 21% 17% ($ i
Slide 32: Reconciliation of Adjusted Results (cont.)
Reconciliation of Adjusted Results (cont.) Legacy ($ in MM) 3Q23 2Q23 3Q22 % Δ QoQ % Δ YoY Legacy Franchises Total Revenues - As Reported $2,217 $1,923 $2,554 15% (13%) Less: Total Divestiture Impact on Revenues(1) 396 (6) 614 Legacy Franchises Total Revenues, Excluding Divestiture Impacts $1,821 $1
Slide 33: Footnotes
Footnotes Slide 2 1) Third quarter 2023 results included divestiture-related impacts of approximately $299 million in earnings before taxes (approximately $214 million after-tax), recorded in Legacy Franchises. This primarily consisted of (i) a gain on sale of the Taiwan consumer business of $403 mi
Slide 34: Footnotes (cont.)
Footnotes (cont.) Slide 6 1) Markets is defined as Fixed Income Markets and Equity Markets. 2) Gross Loan Yield: Gross interest revenue earned on loans divided by average loans. 3) Cost of Interest- -bearing deposits. Slide 7 1) FICO scores are updated as they become available. The FICO bands are co
Slide 35: Footnotes (cont.)
Footnotes (cont.) Slide 9 1) com -K filed with the SEC on October 13, 2023. 2) Includes changes in goodwill and intangible assets, and changes in Other Comprehensive Income. Also includes deferred tax excludable from Basel III CET1 Capital, which includes net DTAs arising from net operating loss, fo
Slide 36: Footnotes (cont.)
Footnotes (cont.) Slide 12 1) Allowance for Credit Losses (ACL) Build / (Release) and Other provisions includes a net ACL build of approximately $86 million related to loans and unfunded lending commitments as well as other provisions of approximately $4 million relating to policyholder benefits and
Slide 37: Footnotes (cont.)
Footnotes (cont.) Slide 15 1) Tangible common equity (TCE) is a non-GAAP financial measure. For additional information on this measure, please refer to Slide 28. Slide 16 1) Excludes third quarter 2023 divestiture-related impacts: Divestiture-related revenues of approximately $396 million primarily
Slide 38: Footnotes (cont.)
Footnotes (cont.) Slide 22 1) Legacy Franchises revenues and expenses ex-divestitures are non-GAAP measures and include the following: In the third quarter 2023: Divestiture-related revenues of approximately $396 million primarily related to a gain on sale of the Taiwan consumer business Divestiture
Slide 39: Footnotes (cont.)
Footnotes (cont.) Slide 25 1) Trading liabilities includes trading account liabilities and brokerage payables. All other liabilities include short-term borrowings and other liabilities. 2) Includes $24.7 billion in Markets, $0.9 billion in Banking, and $24.1 billion in Corp / Other. 3) As of August
Slide 40: Footnotes (cont.)
Footnotes (cont.) Slide 30 1) Citigroup results excluding divestiture impacts are non-GAAP measures and include the following: In the third quarter 2023: Divestiture-related revenues of approximately $396 million primarily related to a gain on sale of the Taiwan consumer business Divestiture-related
Slide 41: Footnotes (cont.)
Footnotes (cont.) Slide 32 1) Citigroup results excluding divestiture impacts are non-GAAP measures and include the following: In the third quarter 2023: Divestiture-related revenues of approximately $396 million primarily related to a gain on sale of the Taiwan consumer business Divestiture-related