Slide 1: Third Quarter 2018 Earnings Review
Citi | Investor Relations Third Quarter 2018 Earnings Review October 12, 2018
Slide 2: Overview
Overview Solid operating results in 3Q’18 – Continued momentum in Institutional accrual businesses and strong results in Fixed Income – Continued growth in International Consumer; improving spreads in US Branded Cards – Delivered 3Q’18 efficiency ratio of 56.1% and ROA of 95 bps – Broad based loan g
Slide 3: Citigroup – Summary Financial Results
Citigroup – Summary Financial Results ($MM, except EPS) 3Q'18 2Q'18 %r 3Q'17 %r Revenues $18,389 $18,469 (0)% $18,419 (0)% • Revenues Operating Expenses 10,311 10,712 (4)% 10,417 (1)% – Excluding gains(1) and the Efficiency Ratio 56.1% 58.0% 56.6% impact of FX translation, revenues were up 4% driven
Slide 4: Citigroup – Year-to-Date Comparison
Citigroup – Year-to-Date Comparison ($B, except EPS) YTD’18 YTD’17 YoY % r Underlying YoY % r(1) GCB revenue by region(2) GCB Revenue $25.3 $24.4 4% North America 1% ICG Revenue $28.8 $28.2 2% Asia 3% Latin America 9% Corp / Other Rev $1.6 $2.4 (32)% GCB 3% ICG revenue by business(3) Citi Revenue $5
Slide 5: Global Consumer Banking
Global Consumer Banking (Constant $MM) 3Q'18 QoQ % r YoY % r YTD'18 %r • Revenues Revenues $8,654 5% 3% $25,337 4% North America 5,129 2% (1)% 15,290 1% – Up 3% YoY largely driven by strength in Latin America, as well International 3,525 8% 11% 10,047 8% as one-time gain of ~$250MM(1) Expenses 4
Slide 6: North America Consumer Banking
North America Consumer Banking ($MM) 3Q'18 QoQ % r YoY % r YTD'18 %r • Revenues Revenues $5,129 2% (1)% $15,290 1% – Retail Banking: Excluding mortgage, Retail Banking 1,329 (1)% (3)% 3,984 2% revenues up 1% YoY, as continued Mortgage 134 (4)% (28)% 423 (24)% growth in deposit spreads and Retail e
Slide 7: International Consumer Banking
International Consumer Banking (Constant $MM) 3Q'18 QoQ % r YoY % r YTD'18 %r • Revenues Revenues $3,525 8% 11% $10,047 8% – Latin America: Excluding ~$250MM gain on Latin America 1,670 17% 26% 4,398 15% sale, revenues up 8% YoY reflecting growth - Retail Banking 1,265 23% 34% 3,230 17% across com
Slide 8: Global Consumer Banking – Credit Trends
Global Consumer Banking – Credit Trends (EOP Loans in Constant $B) NCL 90+ DPD Global Consumer Banking North America EOP 3Q'17 2Q'18 3Q'18 EOP 3Q'17 2Q'18 3Q'18 Loans $298.8 $306.4 $309.0 Loans $187.9 $192.4 $194.1 2.77% 2.72% 2.56% 2.42% 2.63% 2.58% 2.63% 2.48% 2.10% 2.24% 2.20% 2.26% 2.15% 2.30% 2
Slide 9: Institutional Clients Group
Institutional Clients Group ($MM) 3Q'18 QoQ % r YoY % r YTD'18 %r • Revenues Product Revenues – Total Banking(1): Up 2% YoY driven Total Banking $4,876 (6)% 2% $14,894 5% by continued strong momentum and - Treasury & Trade Solutions 2,283 (2)% 4% 6,887 8% solid performance in TTS, Private - Invest
Slide 10: Corporate / Other
Corporate / Other ($MM) 3Q'18 QoQ % r YoY % r YTD'18 %r • Revenues Revenues $494 (6)% (5)% $1,613 (32)% – Down YoY driven by wind-down of legacy assets Expenses 459 (23)% (44)% 1,799 (39)% Credit Costs (30) 75% 40% (155) (19)% • Expenses – Down YoY reflecting the wind- EBT 65 38% NM (31) 93% down of
Slide 11: Citigroup – Net Interest Revenue & Margin
Citigroup – Net Interest Revenue & Margin (NIR in Constant $B) Core Accrual Trading-Related Legacy Assets Citigroup NIM Core Accrual NIM 0.04 3.54% 3.60% 3.60% 3.51% 3.47% 3.48% 3.46% 0.035 2.76% 2.75% 2.74% 3Q’18 0.03 3Q’18 2.70% 2.70% 2.65% 2.64% QoQ% r YoY% r $11.80 2% 5% $11.12 $11.29 $11.11 $11
Slide 12: Citigroup – Key Capital Metrics
Citigroup – Key Capital Metrics ($B, except TBV) Common Equity Tier 1 Capital Ratio(1) Supplementary Leverage Ratio(1) Tangible Book Value / Share(1) 15.0% 12.8% 13.1% 13.0% 12.6% 12.6% 12.4% 90.00 12.1% 12.1% 11.8% 13.0% 11.0% 80.00 9.0% 7.4% 7.2% 7.3% 7.2% 7.1% 6.7% 6.7% 6.6% 6.5% 7.0% 70.00 5.0%
Slide 13: Conclusions
Conclusions YTD’18 results showed continued momentum across the franchise – Underlying revenue growth in aggregate across GCB and ICG of 4%(1) – Positive operating leverage and continued credit discipline resulting in EBT growth – Delivered 24% YoY EPS growth, including impact of share buybacks – Ro
Slide 14: 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 16: Appendix
Appendix Table of Contents 17. YTD’18 Returns Analysis 25. Institutional Drivers 18. Citigroup – LTM Efficiency Ratio 26. Preferred Stock Dividend Schedule 19. Estimated FX Impact on Key P&L Metrics 27. Equity & CET1 Capital Drivers (YoY) 20. Asia Consumer Banking – LTM Revenues 28. Equity & CET1 Ca
Slide 17: YTD’18 Returns Analysis
YTD’18 Returns Analysis ($B) Average Average (2) Net Income GAAP ROA Allocated to Common Assets (bps) TCE(3) RoTCE GCB $4.2 $421 135 $35 16.2% ICG 9.7 1,399 92 85 15.2% (1) Corp / Other (1.0) 95 (23) 34 (4.0)% (1) Citigroup $12.9 $1,915 96 $154 11.2% Note: Totals may not sum due to rounding. (1) Rep
Slide 18: Citigroup – LTM Efficiency Ratio
Citigroup – LTM Efficiency Ratio LTM Efficiency Ratio 3Q’18 YTD’18 LTM’18 Operating Efficiency 56.1% 57.3% 57.7% YoY r (bps) (48) (74) (80) 59.9% 59.8% YoY r ex FX (bps) (42) (93) (107) 59.3% 59.2% 58.5% 58.3% 58.2% 57.9% 57.7% 3Q'16 (1) 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 Note: LTM: Las
Slide 19: Estimated FX Impact on Key P&L Metrics
Estimated FX(1) Impact on Key P&L Metrics ($B) Year-over-Year Impact 3Q’18 2Q’18 1Q’18 4Q’17 3Q’17 Revenues $(0.3) $(0.1) $0.3 $0.2 $0.1 Expenses (0.2) (0.0) 0.3 0.2 0.1 Credit Costs (0.0) (0.0) 0.0 0.0 0.0 Earnings Before Taxes $(0.1) $(0.0) $0.0 $0.0 $0.0 19 Note: Totals may not sum due to roundin
Slide 20: Asia Consumer Banking – LTM Revenues
Asia Consumer Banking(1) – LTM Revenues (in Constant $B) LTM Revenues Consumer excluding Investment Products Investment Products(2) Consumer excl. Investments LTM YoY Growth: 5% 5% 5% 4% 1% 2% 0% 1% LTM 3Q’16 - 3Q’18 (1)% CAGR $7.22 $7.34 $7.37 $7.38 4% $6.93 $6.99 $7.09 $6.84 $6.89 1.17 1.21 1.20 1
Slide 21: Consumer Credit
Consumer Credit (Constant $B) 3Q'18 Loans Growth 90+ DPD Ratio NCL Ratio ($B) (% ) YoY % 3Q'18 2Q'18 3Q'17 3Q'18 2Q'18 3Q'17 Korea 19.0 6.1% (1.9)% 0.2% 0.2% 0.2% 0.4% 0.5% 0.2% Singapore 12.3 4.0% 3.1% 0.2% 0.1% 0.1% 0.4% 0.4% 0.4% Hong Kong 12.3 4.0% 14.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.2% Australia 1
Slide 22: Regional Credit Portfolio
Regional Credit Portfolio (3Q’18 EOP in $B) Geographic Loan Distribution Loan Composition Commercial Banking Korea 6% $204 Mexico Mortgages 9% 5% Singapore 4% Personal & Other 25% Hong Kong 4% Cards 2% GCB Taiwan 3% $105 North America Other EM 63% 8% 27% 69% 29% Developed Asia 3% 24% 20% DM EM Hong
Slide 23: Consumer Drivers
Consumer Drivers (1) 3Q'18 2Q'18 1Q'18 4Q'17 3Q'17 YoY QoQ GCB Digital Metrics (MM) North America: Active Digital Customers 18.0 17.8 17.7 17.5 17.1 5% 1% Active Mobile Customers 10.4 10.1 9.9 9.7 9.2 13% 3% International: Active Digital Customers 10.1 9.6 9.2 8.9 8.5 19% 5% Active Mobile Customers
Slide 24: Consumer Drivers Continued
Consumer Drivers Continued Digital / Mobile Users(1) Agent Contact Rate(2) (MM) Digital Users Mobile Users 25% 28.1 (6)% 25.6 22.5 64% 1.39 17.4 1.36 14.0 1.30 10.6 3Q'16 3Q'17 3Q'18 3Q'16 3Q'17 3Q'18 LTM'16 LTM'17 LTM'18 E-Statement Penetration(3) E-Payment Penetration(4) ~800 bps 73% 69% ~1,000 bp
Slide 25: Institutional Drivers
Institutional Drivers ICG 3Q'18 2Q'18 1Q'18 4Q'17 3Q'17 YoY QoQ (Constant $B) EOP Deposits: 685 673 650 629 631 8% 2% NA 318 308 295 296 290 9% 3% EMEA 180 186 181 169 168 7% (3)% Latin America 26 26 24 24 24 12% 3% Asia 161 153 151 141 149 8% 5% Average Loans: 346 344 333 325 317 9% 1% NA 166 165 1
Slide 26: Preferred Stock Dividend Schedule
Preferred Stock Dividend Schedule ($MM) 2017 2018 2019 1Q $301 $272 $262 2Q 320 318 305 3Q 272 270 262 4Q 320 313 305 Total $1,213 $1,174 $1,133 26 Note: Totals may not sum due to rounding. Based on outstanding preferred stock as of October 12, 2018. Includes impact of announced redemption of Series
Slide 27: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 3Q’17 $208.4 $181.3 $153.5 13.0% Impact of: Tax Reform(3) (22.6) (22.6) (6.0) (36) Net Income(3) 17.4 17.4 17.4 147 Preferred Stock Dividends (1.2)
Slide 28: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 2Q’18 $181.1 $154.2 $142.9 12.1% Impact of: Net Income 4.6 4.6 4.6 39 Preferred Stock Dividends (0.3) (0.3) (0.3) (2) Common Share Repurchases & Div
Slide 29: Common Equity Tier 1 Capital Ratio and Components
Common Equity Tier 1 Capital Ratio and Components ($MM) Common Equity Tier 1 Capital Ratio and Components(1) 9/30/2018(2) 6/30/2018 3/31/2018 12/31/2017 9/30/2017 Citigroup Common Stockholders' Equity(3) $178,153 $181,243 $182,943 $181,671 $208,565 Add: Qualifying noncontrolling interests 148 145 14
Slide 30: Supplementary Leverage Ratio; TCE Reconciliation
Supplementary Leverage Ratio; TCE Reconciliation ($MM, except per share amounts) Supplementary Leverage Ratio and Components(1) 3Q'18(2) 2Q'18 1Q'18 4Q'17 3Q'17 Common Equity Tier 1 Capital (CET1) $140,428 $142,868 $144,128 $142,822 $153,534 Additional Tier 1 Capital (AT1)(3) 19,155 19,134 19,362 19
Slide 31: Adjusted Results and FX Impact Reconciliation
Adjusted Results and FX Impact Reconciliation ($MM, except balance sheet items in $B) Citigroup 3Q'18 2Q'18 3Q'17 International Consumer Banking 3Q'18 2Q'18 3Q'17 YTD'18 YTD'17 Reported EOP Assets $1,925 $1,912 $1,889 Reported Revenues $3,525 $3,246 $3,273 $10,047 $9,301 Impact of FX Translation - (