Slide 1: First Quarter 2021 Earnings Review
Citi | Investor Relations First Quarter 2021 Earnings Review April 15, 2021
Slide 2: Overview
Overview First quarter results reflect a strong start to the year – Significant earnings power with ~$8B of net income, including ~$3.9B reserve release – Record results in Investment Banking and Equities and solid client engagement across ICG – Strong growth in GCB deposits and wealth, albeit with
Slide 3: Citigroup – Summary Financial Results
Citigroup – Summary Financial Results ($MM, except EPS) 1Q'21 4Q'20 %r 1Q'20 %r • Revenues Revenues $19,327 $16,499 17% $20,731 (7)% – Down 7% YoY, as strength in Operating Expenses 11,073 11,104 (0)% 10,643 4% Investment Banking and solid Efficiency Ratio 57.3% 67.3% 51.3% Markets performance were
Slide 4: Strategy Refresh Update
Strategy Refresh Update ($B) Latest Strategic Actions 2020 Contribution of Citi Global Wealth(1) 1 Revenues by Product $6.6 Building Citi Global Wealth across ICG and GCB with Deposits 2.9 new management team Investment Products 2.2 (2) 1.2 Lending Other 0.4 2 Revenues by Client Segment $6.6 Focusin
Slide 5: Institutional Clients Group
Institutional Clients Group ($MM) 1Q'21 4Q'20 QoQ % r 1Q'20 YoY % r • Revenues Total Revenues $12,220 $9,279 32% $12,484 (2)% – Down 2%, reflecting the impact of Banking (1) 5,648 5,133 10% 5,174 9% mark-to-market gains on loan hedges in the prior year, which offset 9% Markets and Securities Ser
Slide 6: Institutional Clients Group – Revenues
Institutional Clients Group – Revenues ($MM) 1Q'21 4Q'20 QoQ % r 1Q'20 YoY % r • Total Banking – TTS down 10% ex-FX(1) YoY, driven by Product Revenues the impact of lower interest rates and Total Banking (2) $5,648 $5,133 10% $5,174 9% lower commercial cards revenues - Treasury & Trade Solutions 2
Slide 7: Global Consumer Banking
Global Consumer Banking (Constant $MM) 1Q'21 4Q'20 QoQ % r 1Q'20 YoY % r Revenues $7,037 $7,307 (4)% $8,243 (15)% • Revenues North America 4,428 4,655 (5)% 5,224 (15)% – Down 15% YoY, driven by lower International 2,609 2,652 (2)% 3,019 (14)% card volumes and lower interest Expenses 4,396 4,514
Slide 8: North America Consumer Banking
North America Consumer Banking ($MM) 1Q'21 4Q'20 QoQ % r 1Q'20 YoY % r • Revenues Revenues $4,428 $4,655 (5)% $5,224 (15)% – Down 15% YoY Branded Cards 2,091 2,132 (2)% 2,347 (11)% – Branded Cards: Down 11% YoY, Retail Services 1,296 1,431 (9)% 1,747 (26)% reflecting lower average loans Retail
Slide 9: International Consumer Banking
International Consumer Banking (Constant $MM) 1Q'21 4Q'20 QoQ % r 1Q'20 YoY % r • Revenues Revenues $2,609 $2,652 (2)% $3,019 (14)% – Latin America: Down 16% YoY, driven by Latin America 1,008 1,091 (8)% 1,201 (16)% lower loan volumes and lower deposit Asia(1) 1,601 1,561 3% 1,818 (12)% spreads,
Slide 10: Global Consumer Banking – Credit Trends
Global Consumer Banking – Credit Trends (EOP Loans in Constant $B) NCL 90+ DPD Global Consumer Banking North America EOP 1Q‘20 4Q'20 1Q'21 EOP 1Q‘20 4Q'20 1Q'21 Loans $286.4 $280.1 $267.9 Loans $188.1 $183.1 $171.9 3.07% 2.84% 2.90% 3.10% 3.22% 2.68% 2.52% 2.51% 2.68% 2.73% 2.63% 2.33% 2.36% 2.21% 1
Slide 11: Corporate / Other
Corporate / Other ($MM) 1Q'21 4Q'20 QoQ % r 1Q'20 YoY % r • Revenues Revenues $70 $(85) NM $73 (4)% – Roughly flat YoY, as the impact of lower rates was offset by the Expenses 413 647 (36)% 416 (1)% absence of marks in the prior year and episodic gains in the quarter Credit Costs (112) (42) NM 192 N
Slide 12: Citigroup – Net Interest Revenue & Markets Revenue
Citigroup – Net Interest Revenue & Markets Revenue Net Interest Revenue (NIR) (Constant $B) Citigroup NIM 2.48% 2.17% 1Q'21 1Q'21 2.03% 2.00% 1.95% QoQ r YoY r $11.54 $11.26 Markets(1) 1.14 $10.59 $10.48 $10.17 1.51 $(0.31) $(1.37) 1.36 1.29 1.28 $(0.01) $0.14 Ex-Markets 10.40 9.75 9.22 9.18 8.89 $(
Slide 13: Citigroup – Key Capital Metrics
Citigroup – Key Capital Metrics Common Equity Tier 1 Capital Ratio(1) Supplementary Leverage Ratio(1) Tangible Book Value / Share(2) 100.00 11.9% 11.9% 13.0% 11.6% 11.8% 11.5% 11.7% 11.7% 11.7% 95.00 11.1% 11.0% 90.00 9.0% 85.00 6.6% 6.8% 7.0% 7.0% 6.4% 6.4% 6.3% 6.2% 6.0% 7.0% 80.00 5.0% 75.00 3.0%
Slide 14: Conclusions
Conclusions Solid performance during the first quarter – Significant earnings power with ~$8B of net income, including ~$3.9B reserve release – Record results in Investment Banking and Equities and solid client engagement across ICG – Strong growth in GCB deposits and wealth, albeit with lower rates
Slide 15: Forward-looking statements
Certain statements in this document are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Thes
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Slide 17: Appendix
Appendix Table of Contents 18. Citigroup Returns 27. Consumer Drivers (continued) 19. Citigroup Returns Trend 28. Preferred Stock Dividend Schedule 20. Strategy Refresh Update – Key Drivers 29. Equity & CET1 Capital Drivers (QoQ) 21. CECL Details 30. Equity & CET1 Capital Drivers (YoY) 22. Estimated
Slide 18: Citigroup Returns
Citigroup Returns ($B) 1Q’21 Returns Average Average (2) Net Income GAAP ROA Allocated to Common Assets (bps) TCE(3) RoTCE GCB $2.2 $439 201 $35 25.0% ICG 5.9 1,787 135 94 25.7% Corp / Other (0.5)(1) 91 (76) 26 (7.3)% Citigroup $7.7(1) $2,317 139 $155 20.1% LTM’21 Returns Average Average Net Income
Slide 19: Citigroup Returns Trend
Citigroup Returns Trend Citigroup RoTCE 12.1% 10.9% 10.1% 8.1% 6.6% 2017(1) 2018(1) 2019 2020 LTM'21 ICG Return on Allocated TCE GCB Return on Allocated TCE 16.6% 17.3% 14.2% 14.6% 15.0% 13.3% 13.4% 13.0% 10.7% 2.6% 2017(1) 2018 2019 2020 LTM'21 2017(1) 2018 2019 2020 LTM'21 Note: Tangible common eq
Slide 20: Strategy Refresh Update – Key Drivers
Strategy Refresh Update – Key Drivers ($B) 2020 Citi Global Wealth Drivers(1) 2020 13 Exit Markets Drivers(3) EOP Loans (2) $122 Average Assets $76 EOP Client Assets 742 EOP Assets 82 EOP Deposits 273 EOP Loans 56 AUMs / Brokerage / Custody / Trust 469 EOP Deposits 56 EOP AUMs 32 Average Allocated T
Slide 21: CECL Details
CECL Details Allowance for Credit Losses ($B) 1Q'21 Balance ACLL / Balance 1Q'21 Loans as of Build / FX / as of (1) (1) as of 12/31/20 (Release) Other 3/31/21 3/31/21 Cards $16.8 $(1.5) $(0.0) $15.2 10.72% All other GCB 2.4 (0.3) (0.0) 2.1 Global Consumer Banking $19.2 $(1.8) $(0.1) $17.3 6.47% Inst
Slide 22: Estimated FX Impact on Key P&L Metrics
Estimated FX(1) Impact on Key P&L Metrics ($B) Year-over-Year Impact 1Q’21 4Q’20 3Q’20 2Q’20 1Q’20 Revenues $0.2 $(0.2) $(0.2) $(0.4) $(0.3) Expenses 0.1 (0.0) (0.0) (0.3) (0.2) Credit Costs 0.0 (0.0) (0.0) (0.1) (0.0) Earnings Before Taxes $0.1 $(0.2) $(0.1) $(0.1) $(0.1) 22 Note: Totals may not su
Slide 23: Regional Credit Portfolio
Regional Credit Portfolio (1Q’21 EOP in $B) Geographic Loan Distribution Loan Composition Hong Kong 5% $275 Private Bank Singapore 4% Mexico 4% Markets Western Brazil 3% Treasury and Trade Europe 38% Solutions 18% Corporate Lending ICG Other EM 22% $117 15% 15% 3% North America 13% Developed Asia 29
Slide 24: Consumer Credit
Consumer Credit (Constant $B) 1Q'21 Loans Growth 90+ DPD Ratio NCL Ratio ($B) (% ) YoY % 1Q'21 4Q'20 1Q'20 1Q'21 4Q'20 1Q'20 Korea 17.7 6.6% 5.5% 0.2% 0.2% 0.2% 0.5% 0.6% 0.6% Singapore 13.6 5.1% 1.6% 0.1% 0.1% 0.1% 0.2% 0.3% 0.3% Hong Kong 13.5 5.0% 11.0% 0.1% 0.1% 0.1% 0.2% 0.2% 0.2% Australia 9.3
Slide 25: Institutional Drivers
Institutional Drivers (Constant $B) ICG 1Q'21 4Q'20 3Q'20 2Q'20 1Q'20 YoY QoQ Average Deposits: 947 963 947 939 823 15% (2)% NA 478 496 488 482 402 19% (4)% EMEA 225 223 222 221 203 11% 1% Latin America 43 43 43 41 35 25% (0)% Asia 201 201 193 195 183 10% 0% EOP Deposits: 938 917 930 920 895 5% 2% N
Slide 26: Consumer Drivers
Consumer Drivers (1) 1Q'21 4Q'20 3Q'20 2Q'20 1Q'20 YoY QoQ GCB Digital Metrics (MM) North America: Active Digital Customers 20.5 20.3 20.0 20.0 20.0 2% 1% Active Mobile Customers 13.2 13.0 12.8 12.7 12.7 4% 1% International: Active Digital Customers 14.8 14.7 14.0 13.5 13.5 9% 1% Active Mobile Custo
Slide 27: Consumer Drivers (continued)
Consumer Drivers (continued) Digital / Mobile Customers(1) Agent Contact Rate(2) (MM) Digital Customers Mobile Customers 17% 32% (28)% 33.5 35.2 26.0 30.1 23.9 1.27 19.7 1.15 0.92 1Q'19 1Q'20 1Q'21 1Q'19 1Q'20 1Q'21 LTM'19 LTM'20 LTM'21 E-Statement Penetration(3) E-Payment Penetration(4) ~800 bps 82
Slide 28: Preferred Stock Dividend Schedule
Preferred Stock Dividend Schedule ($MM) 2020 2021 2022 1Q $291 $292 $292 2Q 253 253 253 3Q 284 292 292 4Q 267 253 253 Total $1,095 $1,091 $1,090 28 Note: Totals may not sum due to rounding. Based on outstanding preferred stock as of April 15, 2021. Reflects the fixed dividend rate of each security,
Slide 29: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 4Q’20 $180.0 $153.4 $147.3 11.7% Impact of: CECL 25% Provision Deferral(3) N/A N/A (1.0) (8) Net Income 7.9 7.9 7.9 63 Preferred Stock Dividends (0.
Slide 30: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 1Q’20 $174.7 $149.2 $136.9 11.1% Impact of: CECL 25% Provision Deferral(3) N/A N/A 0.2 2 Net Income 16.5 16.5 16.5 133 Preferred Stock Dividends (1.
Slide 31: Common Equity Tier 1 Capital Ratio and Components
Common Equity Tier 1 Capital Ratio and Components ($MM) Common Equity Tier 1 Capital Ratio and Components(1) 1Q'21(2) 4Q'20 3Q'20 2Q'20 1Q'20 Citigroup Common Stockholders' Equity(3) $182,402 $180,118 $176,047 $173,877 $174,846 Add: Qualifying noncontrolling interests 132 141 141 145 138 Regulatory
Slide 32: Supplementary Leverage Ratio; TCE Reconciliation
Supplementary Leverage Ratio; TCE Reconciliation ($MM, except per share amounts) Supplementary Leverage Ratio and Components 1Q'21(1) 4Q'20 3Q'20 2Q'20 1Q'20 Common Equity Tier 1 Capital (CET1) (2) $148,945 $147,274 $142,158 $139,622 $136,853 Additional Tier 1 Capital (AT1)(3) 21,540 19,779 18,153 1
Slide 33: Adjusted Results Reconciliation
Adjusted Results Reconciliation ($MM, except as otherwise noted) Citigroup 1Q'21 4Q'20 1Q'20 LTM'21 2020 2019 2018 2017 Reported Net Income (Loss) $7,942 $4,309 $2,536 $16,453 $11,047 $19,401 $18,045 $(6,798) (1) Impact of Tax Reform - - - - - - 94 (22,594) Adjusted Net Income $7,942 $4,309 $2,536 $
Slide 34: FX Impact Reconciliation
FX Impact Reconciliation ($MM, except balance sheet items in $B) Citigroup 1Q'21 4Q'20 1Q'20 Latin America Consumer Banking 1Q'21 4Q'20 1Q'20 Reported EOP Assets $2,314 $2,260 $2,220 Reported Revenues $1,008 $1,096 $1,199 Impact of FX Translation - (25) 52 Impact of FX Translation - (5) 2 EOP Assets