Citigroup, Inc. · NYSE:C
Citigroup — Investor Day (2024)
27 slides from Citigroup's investor day presentation, 2024
Slide 1: Financial Update
< oy, Financial Update Chief Financial Officer
Slide 2: Our strategy and path forward remains unchanged
Our strategy and path forward remains unchanged Be the preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in our home market Delivering on our 2022 Investor Day priorities Our path forward 2024 !nflection year for Citi
Slide 3: We grew revenue over the past two years despite a different macro backdrop
We grew revenue over the past two years despite a significantly different macro and political backdrop Citi macroeconomic assumptions vs. actuals 2022 2023 epee Actuals Depest Actuals Real U.S. GDP growth 4.0% 1.9% 2.1% 2.5% Fed funds target (EOP) 1.50% 4.50% 2.00% 5.50% CPI inflation 2.8% 8.1% 2.1%
Slide 4: Our diversified business mix delivered revenue growth since 2021
Our diversified business mix delivered revenue growth since 2021, despite headwinds in Banking and Wealth Global network Services Rank - TTS: #1" ; SS: #40) Interconnected Markets Rank-Fl: #2); Equities: #6 Banking Rank— IB: #5 Diversified Wealth Rank-PB: Tied #5 Local presence U.S. Personal Banking
Slide 5: Expenses increased materially reflecting critical investments
Expenses increased materially reflecting critical investments USDin Billions 71.8% Teasiomation Growth driven by investments to modernize 67.0% 68.1% resins the firm’s infrastructure, automate manual processes and enhance data and analytics Efficiency 58.8% ratio 56.4 1. $48.2 $51.3 $44.4 Business I
Slide 6: Our Transformation is setting the stage for future success
Our Transformation is setting the stage for future success Transformation of this magnitude is always a multi-year journey and never linear. Examples of progress to date Near-term areas of focus * Built greater efficiency and scale in the risk management of our Global Spread Products business with 9
Slide 7: Maintained a strong balance sheet with ample liquidity while improving capital efficiency
Maintained a strong balance sheet with ample liquidity while improving capital efficiency Progression of binding CET ‘capital ratio: 2020 to toda I Reg. Min. M™GSIB lM ccB/sca -— Required CET! Memt Buffer & Excess vs. Capital Ratio 4920 . Ps , * Card loan growth driven by investments and rebound in
Slide 8: We remain confident in our ability to achieve our medium-term targets
We remain confident in our ability to achieve our medium-term targets Timeline and key events 2021 @ Refreshed our strategy v Refreshed strategy Y Began work on divestitures Y Defined and scoped Transformation 2022 @ Progress on strategy and Transformation v Announced medium-term targets ¥ Completed
Slide 9: Continued, sustainable revenue growth is key to delivering our targets
Continued, sustainable revenue growth is key to delivering our targets Total revenues USD in Billions Reported $71.9 $78.5 revenues 4-5% CAGR 4 ~$87-92 Reported revenues ex- $77.1 divest. $72.6 Nil NIR ex- divest.) (3) Notable items 2021 2023 2026 included in reported . $(1.9) revenues?) a | Ty snce
Slide 10: Expect low to moderate growth in Services, Markets and USPB
Expect low to moderate growth in Services, Markets and USPB Revenue CAGRs Medium-term revenue drivers USD in Billions Low-to mid- ; . ; , +21 ‘AGR single digits * TTS: Deepen with Core Clients and grow with Commercial Os GNe y Clients, provide innovative products and solutions to grow key Services(2
Slide 11: Expect strong growth in Banking and Wealth as the wallets recover
Expect strong growth in Banking and Wealth as the wallets recover Revenue CAGRs Medium-term revenue drivers USD in Billions High- | (23)% CAGR + New senior leadership + Expect Investment Banking wallet to rebound * Increase share as we benefit from investments in growth sectors $7.8 * Strategic focu
Slide 12: Expense outlook and efficiency ratio
USD in Billions Efficiency ~66-67% ratio - <60% —e Subject to Expenses $53.5-53.8 _$(2.0-2.5) $51.0-53.0 | “revenue ex-FDIC@) = = growth Efficiencies related to the org. simplification Continued reduction in stranded costs Beginning to realize benefits from Transformation investments Volume-related
Slide 13: Capital optimization and efficiency remain top priorities
Capital optimization and efficiency remain top priorities Higher capital requirements necessitates ongoing RWA efficiency Drivers of Citi’s CET1 capital ratio over long-term USD in Billions, EOP vs. 4Q'20 (1) Flat to up driven by business growth and potential Basel II! RWA® $1,279 $1,219 $1,143 $1,1
Slide 14: We have a clear path to achieve our medium-term RoTCE target
We have aclear path to achieve our medium-term™ RoTCE target RoTCE based 13.4% 8.9% 4.9% on reported results) RoTCE ex- 14.4% divestitures and notable . . ~11-12 items® Medium-term guidance % 9.5% 4-5% revenue CAGR 7.8% 2021 result: included $8.8 $51-53B expenses billion ACL release Cost of credit d
Slide 15: Services is key to our financial path forward
Services is key to our financial path forward Strong business and financial profile With synergies across the franchise Leading competitive position Revenue growth through cycles Strong risk profile High returns citi SERVICES INVESTOR Day #1 franchise in Services Award-winning CitiDirect® platform C
Slide 16: We remain on track to meet our 2024 guidance
We remain on track to meet our 2024 guidance Full Year 2024 Guidance * Revenues: ~$80-81 billion NIR driven by fee growth in Services, driven by client wins and deepening of existing relationships. Rebound in IB and improvement in Wealth. Lower partner payments in Retail Services Nil ex-Markets down
Slide 17: Slide 17
Slide 18: Forward-looking statements
Forward-looking statements Certain statements in this presentation are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as believe, expect, anticipate, intend, estimate, may increase, may fl
Slide 19: Tangible common equity reconciliation
Tangible common equity reconciliation Tangible Book Value Per Share ($inmm, except per share amounts) 4023 4022 4021 4920 Common stockholders’ equity $187,853 $182,194 $182,977 $179,962 Less: Goodwill 20,098 19,691 21,299 22,162 Intangible assets (other than mortgage servicing rights) 3,730 3,763 4,
Slide 20: Reconciliation of adjusted results
Reconciliation of adjusted results ($inmm) 2023 2022 2021 Total Citigroup revenues as reported $78,462 $75,338 $71,884 Less: Divestiture-related impacts on revenues” 1,346 854 (670) Total Citigroup revenues ex-divestitures 77116 74,484 72,554 Services revenues 48,102 15,665 12,568 Services revenues
Slide 21: Tangible common equity reconciliation and Citigroup returns
Tangible common equity reconciliation and Citigroup returns (Sinmm) 2023 2022 2021 Citigroup netincome $9,228, $14,845 $21,952 Less: Preferred stock dividends 1198 4032 4040 Net income available to common shareholders $8,030 $13,813 $20,912 ‘Average common equity $187,730 $180,093 $182,421 Less: Ave
Slide 22: Services returns reconciliation
Services returns reconciliation Services returns reconciliation 2023 2021 Average Allocated TCE (in billions of dollars)” Services $23.0 $23.9 Markets 53.4 45.0 Banking 21.4 20.2 uSPB 29 21.0 Wealth 13.4 12.9 All Other 30.6 33.3 Total Citi average TCE $163.4 $156.3, Plus: Average goodwill $20.3 $21.
Slide 23: Footnotes: Financial update (1/3)
Footnotes: Financial update (1/3) (“sice2 ~\ 4. Medium-term is defined as 2026, 2026 RoTCE isa forward-looking non-GAAP financial measure, ROTCE represents annualized net income available to common shareholders as a percentage of average TCE. From time-to-time, management may discuss forward-looking
Slide 24: Footnotes: Financial update (2/3)
Footnotes: Financial update (2/3) (sides ~\ 4, Revenues and non-interest revenues excluding divestiture-related impacts are non-GAAP financial measures, Full year 2023 revenues of $78.5 billion and non-interest revenues of $23.6 billion included divestiture-related impacts of approximately $1.3 bill
Slide 25: Footnotes: Financial update (3/3)
F ootnotes: Financial update (3/3) (s 1 sl sl 1 2. 3. BON lide14 Medium-term is defined as 2026. Return on Tangible Common Equity (RoTCE) is a non-GAAP financial measure, ROTCE represents annualized net income available to common shareholders as a percentage of average TCE. For a reconciliation to r
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