Slide 1: Second Quarter 2019 Earnings Review
Citi | Investor Relations Second Quarter 2019 Earnings Review July 15, 2019
Slide 2: Overview
Overview 2Q’19 showed continued progress in a challenging environment – Revenue growth and positive operating leverage in every region in GCB(1) – Continued growth in accrual businesses in ICG, while market sensitive revenues declined reflecting the broader industry – Expenses down 2%, resulting in
Slide 3: Citigroup – Summary Financial Results
Citigroup – Summary Financial Results ($MM, except EPS) 2Q'19 1Q'19 %r 2Q'18 %r 1H'19 %r Revenues $18,758 $18,576 1% $18,469 2% $37,334 (0)% Operating Expenses 10,500 10,584 (1)% 10,712 (2)% 21,084 (3)% Efficiency Ratio 56.0% 57.0% 58.0% 56.5% Operating Margin 8,258 7,992 3% 7,757 6% 16,250 3% Net C
Slide 4: Global Consumer Banking
Global Consumer Banking (Constant $MM) Ex-Hilton 2Q'19 QoQ % r YoY % r 1H'19 %r % r (1) • Revenues Revenues $8,505 1% 4% $16,956 3% 4% – Up 4% YoY, with contribution North America 5,158 (1)% 3% 10,343 2% 3% from all regions International 3,347 3% 4% 6,613 4% 4% Expenses 4,663 1% 1% 9,271 0% 0% •
Slide 5: North America Consumer Banking
North America Consumer Banking ($MM) 2Q'19 QoQ % r YoY % r 1H'19 %r • Revenues Revenues $5,158 (1)% 3% $10,343 2% – Up 3% YoY Retail Banking 1,351 3% 0% 2,667 0% – Retail Banking: Excluding mortgage, Mortgage 127 (2)% (9)% 257 (11)% revenues up 1% YoY, as deposit growth Retail ex. Mortgage 1,224 3
Slide 6: International Consumer Banking
International Consumer Banking (Constant $MM) 2Q'19 QoQ % r YoY % r 1H'19 %r • Revenues Revenues $3,347 3% 4% $6,613 4% – Latin America: Up 5% YoY, excluding Latin America 1,432 4% 3% 2,813 5% the impact of the sale of asset Asia(1) 1,915 2% 5% 3,800 3% management business(4), primarily driven b
Slide 7: 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'18 1Q'19 2Q'19 EOP 2Q’18 1Q'19 2Q'19 Loans $305.3 $307.1 $314.3 Loans $192.4 $193.2 $198.5 2.97% 2.93% 2.63% 2.48% 2.77% 2.72% 2.56% 2.60% 2.26% 2.15% 2.30% 2.28% 2.22% 2.24% 2
Slide 8: Institutional Clients Group
Institutional Clients Group ($MM) 2Q'19 QoQ % r YoY % r 1H'19 %r • Revenues Product Revenues – Total Banking(2): Down 1% YoY, as Total Banking $5,128 (1)% (1)% $10,326 3% continued momentum in TTS and - Treasury & Trade Solutions(1) 2,441 2% 4% 4,836 5% Private Bank was more than offset by - Inves
Slide 9: Corporate / Other
Corporate / Other ($MM) 2Q'19 QoQ % r YoY % r 1H'19 %r • Revenues Revenues $532 23% 1% $963 (14)% – Up 1% YoY, as higher treasury revenues and gains were Expenses 481 (12)% (20)% 1,030 (23)% largely offset by wind-down of legacy assets Credit Costs (22) 12% 81% (47) 62% EBT 73 NM 59% (20) 80% • Expe
Slide 10: Citigroup – Net Interest Revenue & Margin
Citigroup – Net Interest Revenue & Margin (NIR in Constant $B) 0.036 Citigroup Net Interest Revenue Citigroup NIM 0.031 2.64% 2.70% 2.70% 2.71% 2.72% 2.67% 0.026 2Q’19 2Q’19 1H’19 QoQ r YoY r YoY r $11.50 $11.72 $11.96 $11.72 $11.95 0.021 $0.45 $0.23 $1.31 $10.86 0.016 0.011 0.006 0.001 -0.004 -0.00
Slide 11: Citigroup – Key Capital Metrics
Citigroup – Key Capital Metrics ($B, except TBV) Common Equity Tier 1 Capital Ratio(1) Supplementary Leverage Ratio(1) Tangible Book Value / Share(2) 15.0% 13.1% 13.0% 12.4% 12.1% 12.1% 11.9% 11.9% 11.9% 11.7% 90.00 13.0% 11.0% 80.00 9.0% 7.2% 7.1% 6.7% 6.7% 6.6% 6.5% 6.4% 6.4% 6.4% 7.0% 70.00 5.0%
Slide 12: Conclusions
Conclusions 1H’19 results showed continued momentum in a challenging environment – Year-over-year revenue growth across products and regions in GCB(1) – Growth in accrual businesses in ICG, while trading businesses declined – Positive operating leverage and continued credit discipline – Delivered 15
Slide 13: 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 15: Appendix
Appendix Table of Contents 16. 1H’19 Returns 24. Preferred Stock Dividend Schedule 17. Citigroup – LTM Efficiency Ratio and 25. Equity & CET1 Capital Drivers (YoY) Expenses 26. Equity & CET1 Capital Drivers (QoQ) 18. Estimated FX Impact on Key P&L Metrics 27. Common Equity Tier 1 Capital Ratio and 1
Slide 16: 1H’19 Returns
1H’19 Returns ($B) Average Average (2) Net Income GAAP ROA Allocated to Common Assets (bps) TCE(3) RoTCE GCB $2.8 $429 134 $36 15.9% ICG 6.6 1,432 94 85 15.7% (1) Corp / Other (0.5) 99 3 30 (3.6)% (1) Citigroup $9.0 $1,959 98 $152 11.9% Note: Totals may not sum due to rounding. (1) Represents 1H’19
Slide 17: Citigroup – LTM Efficiency Ratio and Expenses
Citigroup – LTM Efficiency Ratio and Expenses ($MM) LTM Efficiency Ratio and Expenses 2Q’19 1H’19 LTM’19 Operating Efficiency 56.0% 56.5% 56.7% (1) 59.9% 59.8% YoY r (bps) (202) (147) (118) 59.3% 59.2% YoY r ex FX (bps) (195) (136) (110) 58.5% 58.3% 58.2% 57.9% 57.7% 57.4% 57.2% 56.7% $43,356 $42,33
Slide 18: Estimated FX Impact on Key P&L Metrics
Estimated FX(1) Impact on Key P&L Metrics ($B) Year-over-Year Impact 2Q’19 1Q’19 4Q’18 3Q’18 2Q’18 Revenues $(0.2) $(0.4) $(0.4) $(0.3) $(0.1) Expenses (0.2) (0.3) (0.3) (0.2) (0.0) Credit Costs (0.0) (0.0) (0.0) (0.0) (0.0) Earnings Before Taxes $(0.1) $(0.1) $(0.1) $(0.1) $(0.0) 18 Note: Totals ma
Slide 19: Consumer Credit
Consumer Credit (Constant $B) 2Q'19 Loans Growth 90+ DPD Ratio NCL Ratio ($B) (% ) YoY % 2Q'19 1Q'19 2Q'18 2Q'19 1Q'19 2Q'18 Korea 17.7 5.6% (3.7)% 0.2% 0.2% 0.2% 0.6% 0.5% 0.5% Hong Kong 14.0 4.5% 18.8% 0.1% 0.1% 0.1% 0.2% 0.2% 0.1% Singapore 13.2 4.2% 6.6% 0.1% 0.1% 0.1% 0.3% 0.3% 0.4% Australia 9
Slide 20: Regional Credit Portfolio
Regional Credit Portfolio (2Q’19 EOP in $B) Geographic Loan Distribution Loan Composition Commercial Banking $208 Mexico Korea 6% Mortgages 8% 5% Hong Kong 4% Personal & Other 24% Singapore 4% 1% Cards GCB Taiwan 3% $106 North America Other EM 63% 8% 25% 69% 29% Developed Asia 3% 25% 20% DM EM Hong
Slide 21: Consumer Drivers
Consumer Drivers (1) 2Q'19 1Q'19 4Q'18 3Q'18 2Q'18 YoY QoQ GCB Digital Metrics (MM) North America: Active Digital Customers 18.8 18.8 18.5 18.1 17.8 6% 0% Active Mobile Customers 11.4 11.2 11.0 10.5 10.1 12% 1% International: Active Digital Customers 11.6 11.3 10.9 10.4 9.6 21% 3% Active Mobile Cust
Slide 22: Consumer Drivers (continued)
Consumer Drivers (continued) Digital / Mobile Customers(1) Agent Contact Rate(2) (MM) Digital Customers Mobile Customers 23% 30.5 27.4 56% (11)% 24.7 20.2 1.40 16.5 1.32 13.0 1.24 2Q'17 2Q'18 2Q'19 2Q'17 2Q'18 2Q'19 LTM'17 LTM'18 LTM'19 E-Statement Penetration(3) E-Payment Penetration(4) ~600 bps 72
Slide 23: Institutional Drivers
Institutional Drivers ICG 2Q'19 1Q'19 4Q'18 3Q'18 2Q'18 YoY QoQ (Constant $B) EOP Deposits: 715 702 690 684 672 6% 2% NA 325 317 323 318 308 5% 2% EMEA 196 197 184 178 184 6% (1)% Latin America 28 28 27 26 26 8% (3)% Asia 166 159 156 162 154 8% 4% Average Loans: 359 356 351 345 342 5% 1% NA 178 176
Slide 24: Preferred Stock Dividend Schedule
Preferred Stock Dividend Schedule ($MM) 2018 2019 2020 1Q $272 $262 $254 2Q 318 296 296 3Q 270 254 254 4Q 313 296 296 Total $1,173 $1,109 $1,100 24 Note: Totals may not sum due to rounding. Based on outstanding preferred stock as of July 15, 2019 and reflects the fixed dividend rate of each security
Slide 25: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 2Q’18 $181.1 $154.2 $142.9 12.1% Impact of: Net Income 18.4 18.4 18.4 156 Preferred Stock Dividends (1.1) (1.1) (1.1) (10) Common Share Repurchases
Slide 26: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 1Q’19 $178.3 $151.6 $140.4 11.9% Impact of: Net Income 4.8 4.8 4.8 41 Preferred Stock Dividends (0.3) (0.3) (0.3) (3) Common Share Repurchases & Div
Slide 27: Common Equity Tier 1 Capital Ratio and Components
Common Equity Tier 1 Capital Ratio and Components ($MM) Common Equity Tier 1 Capital Ratio and Components(1) 2Q'19(2) 1Q'19 4Q'18 3Q'18 2Q'18 Citigroup Common Stockholders' Equity(3) $179,534 $178,427 $177,928 $178,153 $181,243 Add: Qualifying noncontrolling interests 154 144 147 148 145 Regulatory
Slide 28: Supplementary Leverage Ratio; TCE Reconciliation
Supplementary Leverage Ratio; TCE Reconciliation ($MM, except per share amounts) Supplementary Leverage Ratio and Components 2Q'19(1) 1Q'19 4Q'18 3Q'18 2Q'18 Common Equity Tier 1 Capital (CET1) $141,125 $140,355 $139,252 $140,428 $142,868 Additional Tier 1 Capital (AT1)(2) 18,309 18,357 18,870 19,44
Slide 29: Adjusted Results and FX Impact Reconciliation
Adjusted Results and FX Impact Reconciliation ($MM, except balance sheet items in $B) Citigroup 2Q'19 1Q'19 2Q'18 1H'19 1H'18 Latin America Consumer Banking 2Q'19 1Q'19 2Q'18 1H'19 1H'18 Reported Net Income $4,799 $4,710 $4,490 $9,509 $9,110 Reported Revenues $1,432 $1,381 $1,375 $2,813 $2,715 Less: