Slide 1: Second Quarter 2017 Earnings Review
Citi | Investor Relations Second Quarter 2017 Earnings Review July 14, 2017
Slide 2: Overview
Overview Continued momentum across the franchise in the 2Q’17 – Continued revenue growth YoY in both Consumer and Institutional businesses – Strong Investment Banking results with continued momentum in TTS and Private Bank – Broad based sequential loan growth across regions and products Significant
Slide 3: Citigroup – Summary Financial Results
Citigroup – Summary Financial Results ($MM, except EPS) 2Q'17 1Q'17 %r 2Q'16 %r 1H'17 %r Revenues $17,901 $18,120 (1)% $17,548 2% $36,021 3% Operating Expenses 10,506 10,477 0% 10,369 1% 20,983 0% Efficiency Ratio 59% 58% 59% 58% Net Credit Losses 1,710 1,709 0% 1,616 6% 3,419 2% (1) Net LLR Build /
Slide 4: North America Consumer Banking
North America Consumer Banking ($MM) 2Q'17 QoQ %r YoY %r 1H'17 %r • Revenues Revenues $4,944 0% 5% $9,888 4% – Retail Banking: Excluding mortgage, Retail Banking 1,291 3% (2)% 2,547 (2)% revenues up 7% YoY driven by Mortgage 188 4% (33)% 369 (32)% continued growth in average loans, Retail ex. Mort
Slide 5: International Consumer Banking
International Consumer Banking (in Constant $MM) 2Q'17 QoQ %r YoY %r 1H'17 %r • Revenues Revenues $3,091 4% 5% $5,964 4% – Latin America up 8% YoY driven by 12% Latin America 1,290 5% 8% 2,441 6% growth in retail banking, reflecting (1) Asia 1,801 4% 3% 3,523 3% continued growth in average loans
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 2Q'16 1Q'17 2Q'17 EOP 2Q'16 1Q'17 2Q'17 Loans $286.3 $292.3 $298.5 Loans $175.6 $181.9 $186.4 2.63% 2.58% 2.24% 2.20% 2.21% 2.26% 2.32% 2.34% 2.07% 2.42% 1.99% 2.05% 2.04% 2.02% 1
Slide 7: Institutional Clients Group
Institutional Clients Group ($MM) 2Q'17 QoQ %r YoY %r 1H'17 %r • Revenues Product Revenues CHECK – Total Banking (1): Up 13% YoY Total Banking $4,816 8% 13% $9,283 13% driven by significant growth in - Treasury & Trade Solutions 2,065 (0)% 3% 4,140 6% Investment Banking, particularly in - Investme
Slide 8: Corporate / Other
Corporate / Other ($MM) 2Q'17 QoQ %r YoY %r 1H'17 %r • Revenues Revenues $653 (45)% (45)% $1,830 (42)% – Down YoY due to legacy asset run-off and divestiture activity, Expenses 990 (11)% (24)% 2,107 (18)% as well as the absence of gains related to debt buybacks in the Credit Costs (132) NM (35)% (80
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 3.55% 3.53% 3.49% 3.48% 3.45% 3.44% 3.50% 2.92% 2.86% 2.86% 2.79% 2.74% 3.00% 2.72% 2Q’17 2Q’17 QoQ% r YoY% r $11.24 $11.18 $11.48 $11.28 $11.17 2.50% 2% - 0
Slide 10: 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% 13.0% 14.0% 12.3% 12.5% 12.6% 12.6% 12.1% 90.00 11.4% 11.7% 12.0% 10.0% 80.00 7.4% 7.5% 7.4% 7.2% 7.3% 7.2% 6.9% 7.1% 8.0% 6.7% 70.00 6.0% 4.0% 60.00 $6
Slide 11: Conclusions
Conclusions Results showed continued momentum across the franchise in 1H’17 – Revenue growth in both Consumer and Institutional businesses – Continued expense discipline with positive operating leverage and stable credit – Delivered 12% YoY EPS growth in 1H’17, including impact of share buybacks Con
Slide 12: Forward-looking statements
Certain statements in this presentation are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances.
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Slide 14: Appendix
Appendix Table of Contents 15. LTM’17 Returns Analysis 23. Capital Management & DTA Utilization (YTD) 16. Estimated FX Impact on Key P&L Metrics 24. Equity & CET1 Capital Drivers (YoY) 17. Loan Loss Reserve Build / (Release) 25. Equity & CET1 Capital Drivers (QoQ) 18. Consumer Credit 26. Common Equi
Slide 15: LTM’17 Returns Analysis
LTM’17 Returns Analysis ($B) Average Average (2) Net Income GAAP ROA Allocated to Common Assets (bps) TCE(3) RoTCE GCB $4.6 $411 112 $36 12.8% ICG 10.8 1,325 81 80 13.5% (1) Corp / Other (1.2) 102 1 67 (1.7)% (1) Citigroup $14.2 $1,837 84 $183 7.8% Disallowed DTA(4) 28 - 28 - Business Results $14.2
Slide 16: Estimated FX Impact on Key P&L Metrics
Estimated FX(1) Impact on Key P&L Metrics Year-over-Year Impact ($B) 2Q’17 1Q’17 4Q’16 3Q’16 2Q’16 Revenues $(0.1) $(0.2) $(0.4) $(0.2) $(0.5) Expenses (0.1) (0.1) (0.3) (0.2) (0.3) Cost of Credit (0.0) (0.0) (0.1) (0.0) (0.1) Earnings Before Taxes $(0.0) $(0.0) $0.0 $0.0 $(0.1) 16 Note: Totals may
Slide 17: Loan Loss Reserve Build / (Release)
Loan Loss Reserve Build / (Release)(1) ($MM) $r 2Q’17 1Q’17 2Q’16 QoQ YoY NA Consumer $103 $159 $56 $(56) $47 International Consumer 21 24 (25) (3) 46 Global Consumer $124 $183 $31 $(59) $93 ICG 16 (230) (59) 246 75 Corp / Other (156) (30) (228) (126) 72 Citigroup $(16) $(77) $(256) $61 $240 17 Note
Slide 18: Consumer Credit
Consumer Credit (in Constant $B) 2Q'17 Loans Growth Growth 90+ DPD Ratio NCL Ratio ($B) (%) YoY % QoQ % 2Q'17 1Q'17 2Q'16 2Q'17 1Q'17 2Q'16 Korea 19.0 6.4% (3.4)% (0.5)% 0.2% 0.2% 0.2% 0.3% 0.4% 0.3% Singapore 12.2 4.1% (6.6)% 0.7% 0.1% 0.1% 0.1% 0.4% 0.5% 0.4% Australia 10.9 3.6% 2.7% 0.3% 0.7% 0.7
Slide 19: Regional Credit Portfolio
Regional Credit Portfolio (2Q’17 EOP in $B) Geographic Loan Distribution Loan Composition $197 Commercial Banking Mexico Korea 6% 5% Mortgages 9% Singapore 4% 25% Personal & Other Hong Kong 4% 2% Cards GCB Taiwan 3% $101 North America Other EM 62% 25% 8% 68% 31% Developed Asia 4% 24% 20% DM EM Hong
Slide 20: Drivers in Constant Dollars
Drivers in Constant Dollars (in Constant $B) Asia GCB(1) 2Q'17 1Q'17 4Q'16 3Q'16 2Q'16 YoY QoQ Cards Purchase Sales 20.1 19.3 19.9 18.7 18.9 7% 4% Cards Average Loans 18.4 18.4 17.6 17.5 17.5 6% 0% Cards EOP Loans 18.8 18.4 18.2 17.6 17.8 6% 2% RB Average Loans 66.5 66.0 65.6 67.6 68.0 (2)% 1% RB EO
Slide 21: Drivers in Constant Dollars (cont’d)
Drivers in Constant Dollars (cont’d) (in Constant $B) ICG 2Q'17 1Q'17 4Q'16 3Q'16 2Q'16 YoY QoQ TTS(1) EOP Deposits: 421 420 419 416 406 4% 0% NA 195 200 198 193 191 2% (3)% EMEA 103 97 99 102 96 7% 6% Latin America 17 17 17 16 16 1% (4)% Asia 107 106 105 105 103 4% 1% ICG Average Loans: 312 303 306
Slide 22: Preferred Stock Dividend Schedule
Preferred Stock Dividend Schedule ($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 $1,184 22 Note: Totals may not sum due to rounding. Based on outstanding preferred stock as of July 14, 2017.
Slide 23: Capital Management & DTA Utilization (YTD)
Capital Management & DTA Utilization (YTD) ($B) CET1 Capital and Ratio(1) DTA Balance Drivers $1.0 $8.0 $1.2 $155.2 $149.5 $(4.5) 12.6% 13.0% $(0.9)B $46.7 $45.8 – $(0.9) (3)(4) (4) 4Q'16 Net DTA Common OCI & 2Q'17 4Q'16 Earnings OCI & 2Q'17 Income Share Other (2) Driven Other Repurchases & Dividend
Slide 24: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 2Q’16 $212.6 $184.6 $154.5 12.5% Impact of: Net Income 15.4 15.4 15.4 125 Preferred Stock Dividends (1.2) (1.2) (1.2) (9) Common Share Repurchases &
Slide 25: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 1Q’17(3) $208.7 $181.4 $152.7 12.8% Impact of: Net Income 3.9 3.9 3.9 32 Preferred Stock Dividends (0.3) (0.3) (0.3) (3) Common Share Repurchases &
Slide 26: Common Equity Tier 1 Capital Ratio and Components
Common Equity Tier 1 Capital Ratio and Components ($MM) Common Equity Tier 1 Capital Ratio and Components(1) 6/30/2017(2) 3/31/2017(3) 12/31/2016 9/30/2016 6/30/2016 (4) Citigroup Common Stockholders' Equity $210,950 $208,907 $206,051 $212,506 $212,819 Add: Qualifying noncontrolling interests 143 13
Slide 27: Supplementary Leverage Ratio; TCE Reconciliation
Supplementary Leverage Ratio; TCE Reconciliation ($MM, except per share amounts) Supplementary Leverage Ratio and Components(1) 2Q'17(2) 1Q'17(3) 4Q'16 3Q'16 2Q'16 Common Equity Tier 1 Capital (CET1) $155,174 $152,664 $149,516 $155,132 $154,534 (4) Additional Tier 1 Capital (AT1) 19,913 19,791 19,87
Slide 28: FX Impact and Other Reconciliations
FX Impact and Other Reconciliations ($MM, except balance sheet items in $B) Citigroup 2Q'17 1Q'17 2Q'16 1H'17 1H'16 International Consumer Banking 2Q'17 1Q'17 2Q'16 1H'17 1H'16 Reported EOP Assets $1,864 $1,821 $1,819 $1,864 $1,819 Reported Revenues $3,091 $2,873 $2,965 $5,964 $5,849 Impact of FX Tr