Citigroup, Inc. · NYSE:C
Citigroup — Bank of America Merrill Lynch Financial Services Conference 2009
26 slides from Citigroup's conference presentation, Nov 12, 2009
Slide 1: Bank of America Merrill Lynch Financial Services Conference
Bank of America — Merrill Lynch Financial Services Conference Ned Kelly Vice-Chairman November 11, 2009 7 oN CIT!
Slide 2: Citigroup Reorganization
Citigroup Reorganization > Global bank for businesses and consumers >» Unmatched global network and emerging markets footprint > Deep and diversified business portfolio across consumer, services, and institutional revenue pools No legal separation between Citi Citi Holdings » Non-core businesses and
Slide 3: Citigroup Reorganization
Citigroup Reorganization EOP YTD 3Q’09 $B Revenues NetIncome Assets Deposits Citicorp $48.6 $13.0 $1,014 $728 Citi Holdings “ $25.9 $(5.8) $617 $90 Corporate / Other $0.4 $(0.6) $258 $15 => (1) Includes a pre-tax gain of $11.1 billion ($6.7 billion after-tax) arising from the 20°09 closing of the Mo
Slide 4: Citigroup Reorganization
Citigroup Reorganization EOP YTD 3Q’09 $B Revenues NetIncome Assets Deposits olding 9 8 6 $90 » Brokerage & Asset Management) 14.7 7.0 59 60 » Local Consumer Lending 15.0 (7.7) 376 30 » Special Asset Pool (3.8) (5.1) 182 - Tew ia ot B18 17 me ra) ea he DO na rN Stay Sra SFR citi a Note: Totals may n
Slide 5: Citi Holdings
Citi Holdings EOP Assets ($B) 898 833 | | | 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 (1) Ring-fenced assets refers to the assets covered under the loss-sharing agreement with the U.S. government. At 3009, ring-fenced assets also > included approximately $45 billion of unfunded lending commitments,
Slide 6: Citi Holdings — Financials
Citi Holdings — Financials Managed Revenues" $21.2 i $B BGAAP @Sec. Impact 2007 2008 YTD 3Q'09 Net Marks’): $(20.1) $(38.7) $(2.4) (1) Managed metrics are non-GAAP measures. Please see slide 22 for additional information on these measures. (2) For alist of net revenue marks $B BNCL a@LLR™ S267, $24.
Slide 7: Brokerage and Asset Management
Brokerage and Asset Management 2007 2008 YTD 3Q’09 Significant Progress Closed Morgan Stanley Smith Barney joint venture in 2Q’09 Revenues 10,659 8,423 14,710 Expenses 7,960 9,236 3,000 Closed sales of Nikko Cordial and Nikko Provisions 158 223 151 Asset Management on October 1*t Net Income $1,672 $
Slide 8: Special Asset Pool
Special Asset Pool (SMM) 2007 2008 YTD 3Q’09 Net Marks‘ (20,222) (38,108) (2,116) Revenues (17,896) (39,574) (3,844) Expenses 1,070 988 671 Provisions _ 885 _ 3581 _ 4255. NetIncome $(12,260) $(26,789) — $(5,066) > Asset reduction of $169B since peak — Sales account for ~1/3 of YTD 3Q asset reductio
Slide 9: Local Consumer Lending
Local Consumer Lending ($MM) 2007 2008 YTD 3@’09 EOP Assets ($B) Managed Revs 28,459 28,379 18,432 Revenues 26,750 24,453 15,030 Expenses 11,457 14,973 7,746 Provisions 13,013 22,934 20,430 Net Income $1,678 $(8,266) $(7,734) 2007 2008 3Q'09 > Asset reduction of >$100B since 2007 Primerica 3%. 3% CR
Slide 10: LCL - CitiFinancial North America
LCL - CitiFinancial North America 2008 YTD 3Q‘09 Revenues 4,180 4,581 2,905 Expenses 1,475 2,152 1,041 Provisions 1,875 3,374 2,359 Pre-tax Income $830 $(945) $(496) Avg. Loans ($B) 34 39 37 NIR% 10.87% 10.68% 9.58% NCL% 3.66% 5.08% 7.16% 90DPD% 2.49% 3.37% 4.17% Average Loans‘) 1st Mtgs 02nd Mtgs s
Slide 11: LCL - Retail Partner Cards
LCL - Retail Partner Cards 00 008 D 3Q‘09 Business Overview Managed Revs() 9,288 10,243 7,169 a » Private label and co-branded cards Revenues 7,579 6,317 3,757 distributed through retail partner Expenses 3,341 3,333 2,181 network — low acquisition cost Provisions 2,542 4,034 3,171 > 20+ major retail
Slide 12: LCL — International
LCL — International 2007 2008 YTD 3Q‘09 Loan Composition by Country Other! Revenues 5,788 5,502 3,664 Expenses 3,177 3,370 1,733 Provisions 2,792 3,791 3,879 Pre-tax Income ($181) $(1,659) $(1,948) Branches 1,483 1,154 NIR% 9.70% 8.90% 8.01% Belgium) @eaAvg. Loans -#-NCL % —-90DPD % aang 9:89% 9.77%
Slide 13: LCL — Auto and CRE
LCL — Auto and CRE Aut oans |@aAvg. Loans ~#-NCL % —t-90DPD % 1AM 6.78% 6.61% 5.68% A11% 4.33% 3.75%, ©138% me, 1.78% 1.85% 1.48% 1.49% 1.83% iy EI 20 21 20 19 is OM i7 I ic 4Q'07 10°08 2Q'08 3Q'08 4Q'08 10°09 20°09 3Q'09 Commercial Real Estate @aaAvg. Loans -@-NCL % —t-90DPD % 2.38% 1.57% 1.04% 0.1
Slide 14: LCL — CitiMortgage
LCL — CitiMortgage @1sts @2nds @Held BSaleable 793% $38 ring- | $33 fenced $29 $30 PA a $22 baa ~15% = $17 oe ring- te 20 21 4Q'07 10'08 20'08 30'08 40°08 10'09 20'09 30'09 4Q'07 1Q'08 2°08 3Q'08 40°08 10°09 20°09 3Q'09 > Offers 1st Mortgage products via Citi and 3" party channels > New originations
Slide 15: Local Consumer Lending — Credit
Local Consumer Lending — Credit Managed Net Credit Losses) ($B) Total Local Consumer Lending BN.A. Bint'l H $18.1 $16.3 | ' 84% H i $8.8 1 ' 1 1 1 1 1 1 1 ' 2007 2008 | 9M'08 9M'09 1 North America 2% CitiFinancial ° Mortgages CitiFinancial Personal CitiMortgage Other Retail Partners Cards (1), Manag
Slide 16: LCL — Retail Partners Cards Managed Credit Avg. FICO
LCL — Retail Partners Cards Managed Credit 733 Avg.FICO 750 760+ 720-759 0680-719 @<680 —*NCLs -*90+DPD 4Q'07 10'08 20'08 30'08 40°08 1Q'09 20'09 3Q'09 Sept 2007 Sept 2009 New account acquisition shifted to lower risk segments, with stricter underwriting criteria across all products and channels Cre
Slide 17: LCL — N.A. Mortgage Credit
LCL — N.A. Mortgage Credit — CitiMortgage —— CitiFinancial 1st Mortgages NCLs = CitiMtg: $1418 6.05% 487% 2.66% 9.07% S837 oy, 5.11% 2.50% 2.64% 2.76% 2.95% 949% 3.92% 4.50% 4Q'07 10'08 20°08 3Q'08 4Q'08 10°09 20'09 3Q'09 24 Mortgages NCLs 7.78% 7.78% 3.20% 3.14% 2.44% es 4Q'07 10'08 20°08 3Q'08 4Q'
Slide 18: Citigroup — Key Capital Metrics & Liquidity
Citigroup — Key Capital Metrics & Liquidity Deposits and Structural Liquidity "=aDeposits ($B) -e-Structural Liquidity") | 71% 12% coy, 8% 63% Capital Ratios (2 | ~®Tier 1 Capital -a-Tier 1 Common | 12.7% 12.8% 11.9% 11.9% 9.1% 826 833 | ] | | | 2007. «2008 )=« 109 2Q'09' 3Q'09 2007, «2008 )3=— 1Q'0
Slide 19: Wrap-up
Wrap-up > Continue to execute our strategy — Reducing assets while optimizing value and mitigating risk >» BAM: Announced and completed sale of most businesses > SAP: ~40% of assets accounted for at Fair Value » LCL: ~45% of assets in operating businesses — Attractive businesses in an improved credi
Slide 20: Appendix
Appendix = ) 19 CItl
Slide 21: Citi Holdings — Ring Fenced Assets
Citi Holdings — Ring Fenced Assets“) Balance sheet LCL holds 75% of covered assets 3Q’09 ($B) First Mortgages Second Mortgages Retail Auto Loans Other Consumer Loans LCL SAP Total $81.0 = $81.0 49.6 = 49.6 10.8 - 10.8 12.0 (2) ‘onsumer Loans CRE loans Leveraged Finance Loans Other Corporate Loans To
Slide 22: Citi Holdings — SAP Assets
Citi Holdings — SAP Assets 3Q’09 EOP Assets % of Assets Face EOP Assets 3Q’09 2Q’09 Ring-fenced‘) Value (% of Face) Securities at AFS/HTM $ 54.9 $ 64.7 33% $ 72.9 75% Corporates 148 7A 4% 15.4 98% Prime and Non-U.S. MBS 16.0 16.2 33% 20.2 80% Auction Rate Securities 8.0 83 15% 10.8 7A% Alt-A mortgag
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Managed-basis (Managed) presentations detail certain non-GAAP financial measures. Managed presentations (applicable only to North American credit card operations, as securitizations are not done in any other regions) include r
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP FINANCIAL MEASURES fv2008 __yro3q09 Molin NA ve iid as Reported 16.12% 18.20% ong WA (Maing NA (tl Holdings NA. etal naged NCL a % af Avg. Managed Loans 3s Reported et Cards NCL 4% ofA, Lose fv2007___f¥2008__yrp3q09 sds Managed Loans 904 DPD ae
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Tier 1 Common and the Tier 1 Common Ratio are non-GAAP financial measures. A reconciliation of Tier 1 Common to Citigroup's Common Stockholders’ Equity, and the Tier 1 Common Ratio to Citigroup's Tier 1 Capital Ratio are inclu
Slide 26: Forward-looking statements
Certain statements in this document are “forward-looking statements’ within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ mate
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