Slide 1: Third Quarter 2019 Earnings Review
Citi | Investor Relations Third Quarter 2019 Earnings Review October 15, 2019
Slide 2: Overview
Overview 3Q’19 showed continued momentum – Solid revenue growth in Consumer with contribution from every region(1,2) – Balanced performance in ICG, with solid results in both the accrual and market sensitive businesses – Broad based loan and deposit growth across Consumer and Institutional franchise
Slide 3: Citigroup – Summary Financial Results
Citigroup – Summary Financial Results ($MM, except EPS) 3Q'19 2Q'19 % 3Q'18 % YTD'19 % Revenues $18,574 $18,758 (1)% $18,389 1% $55,908 0% Operating Expenses 10,464 10,500 (0)% 10,311 1% 31,548 (1)% Efficiency Ratio 56.3% 56.0% 56.1% 56.4% Operating Margin 8,110 8,258 (2)% 8,078 0% 24,360 2% Net
Slide 4: Citigroup – Year-to-Date Comparison
Citigroup – Year-to-Date Comparison ($B, except EPS) YTD’19 YTD’18 YoY % Underlying YoY % (1,2) GCB Revenue $25.6 $25.3 1% GCB revenue by region ICG Revenue $28.9 $28.8 0% North America 4% Asia 4% Corp / Other Rev $1.4 $1.6 (15)% Latin America 4% Citi Revenue $55.9 $55.7 0% GCB 4% Expenses $31.5
Slide 5: Global Consumer Banking
Global Consumer Banking (Constant $MM) 3Q'19 QoQ % YoY % Adj YoY (1) YTD'19 % Adj YoY (1) • Revenues % % Revenues $8,658 $25,614 – Up 4% YoY, excluding the 2% 1% 4% 2% 4% North America 5,352 4% 4% 4% 15,695 3% 4% one-time gain in 3Q’18(1), International 3,306 (0)% (4)% 4% 9,919 1% 4% with
Slide 6: North America Consumer Banking
North America Consumer Banking ($MM) 3Q'19 QoQ % YoY % YTD'19 % Adj YoY • Revenues % (1) – Up 4% YoY Revenues $5,352 4% 4% $15,695 3% 4% – Retail Banking: Down 2% YoY, Retail Banking 1,304 (3)% (2)% 3,971 (0)% (0)% as deposit growth was more than Branded Cards 2,334 6% 11% 6,726 5% 8% off
Slide 7: International Consumer Banking
International Consumer Banking (Constant $MM) 3Q'19 QoQ % YoY % Adj YoY YTD'19 % Adj YoY • Revenues % (1) % (1) – Latin America: Up 3% YoY, Revenues $3,306 (0)% (4)% 4% $9,919 1% 4% excluding the one time gain in Latin America 1,390 (2)% (13)% 3% 4,203 (2)% 4% 3Q’18(1), primarily driven b
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'18 2Q'19 3Q'19 EOP 3Q’18 2Q'19 3Q'19 Loans $305.5 $312.0 $315.0 Loans $194.1 $198.5 $200.7 2.77% 2.72% 2.56% 2.60% 2.97% 2.93% 2.70% 2.48% 2.45% 2.31% 2.48% 2.15% 2.30% 2.28% 2
Slide 9: Institutional Clients Group
Institutional Clients Group ($MM) 3Q'19 QoQ % YoY % YTD'19 % • Revenues Product Revenues – Total Banking(2): Up 3% YoY, as Total Banking $5,032 (2)% 3% $15,358 3% continued momentum in TTS, - Treasury & Trade Solutions(1) 2,410 (1)% 6% 7,246 5% Investment Banking and the Private - Investment
Slide 10: Corporate / Other
Corporate / Other ($MM) 3Q'19 QoQ % YoY % YTD'19 % • Revenues – Down 18% YoY, reflecting the Revenues $402 (24)% (18)% $1,365 (15)% wind-down of legacy assets Expenses 485 1% 6% 1,515 (16)% • Expenses Credit Costs (15) 32% 50% (62) 60% – Up 6% YoY, reflecting higher infrastructure costs, partia
Slide 11: Citigroup – Net Interest Revenue & Markets Revenue
Citigroup – Net Interest Revenue & Markets Revenue Net Interest Revenue (NIR) (Constant $B) 2.64% 2.70% 2.70% 2.71% 2.72% 2.67% 2.56% 3Q’19 YTD’19 YTD’19 Citigroup NIM YoY YoY YoY % $11.43 $11.65 $11.89 $11.67 $11.89 $11.64 $(0.01) $1.31 4% $10.80 1.15 1.12 0.99 0.89 1.21 0.84 $(0.28) $(0.20)
Slide 12: Citigroup – Key Capital Metrics
Citigroup – Key Capital Metrics ($B, except TBV) Common Equity Tier 1 Capital Ratio(1) Supplementary Leverage Ratio(1) Tangible Book Value / Share(2) 100.00 15.0% 13.0% 12.4% 12.1% 12.1% 11.9% 11.9% 11.9% 11.7% 11.6% 13.0% 90.00 11.0% 9.0% 80.00 7.1% 6.7% 6.7% 6.6% 6.5% 6.4% 6.4% 6.4% 6.3% 7.0% 70.0
Slide 13: Conclusions
Conclusions YTD’19 results showed strong client engagement & momentum across the franchise – Solid year-over-year revenue growth across all regions in Consumer(1,2) – Growth in TTS and Investment Banking in ICG – Continued expense and credit discipline – Delivered 17% YoY EPS growth, including impac
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.
Slide 15: Slide 15
Slide 16: Appendix
Appendix Table of Contents 17. YTD’19 Returns 25. Preferred Stock Dividend Schedule 18. Citigroup – LTM Efficiency Ratio and 26. Equity & CET1 Capital Drivers (QoQ) Expenses 27. Equity & CET1 Capital Drivers (YoY) 19. Estimated FX Impact on Key P&L Metrics 28. Common Equity Tier 1 Capital Ratio and
Slide 17: YTD’19 Returns
YTD’19 Returns ($B) Average Average (2) Net Income GAAP ROA Allocated to Common Assets (bps) TCE(3) RoTCE GCB $4.4 $432 137 $36 16.4% ICG 9.8 1,443 91 85 15.3% (1) Corp / Other (0.6) 98 25 30 (2.8)% (1) Citigroup $13.6 $1,973 98 $152 12.0% Note: Totals may not sum due to rounding. (1) Represents YTD
Slide 18: Citigroup – LTM Efficiency Ratio and Expenses
Citigroup – LTM Efficiency Ratio and Expenses ($MM) LTM Efficiency Ratio and Expenses 3Q’19 YTD’19 LTM’19 Operating Efficiency 56.3% 56.4% 56.7% (1) 59.9% 59.8% YoY (bps) 27 (90) (99) 59.3% 59.2% YoY ex FX (bps) 38 (79) (90) 58.5% 58.3% 58.2% 57.9% 57.7% 57.4% 57.2% 56.7% 56.7% $43,356 $42,338 $
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’19 2Q’19 1Q’19 4Q’18 3Q’18 Revenues $(0.2) $(0.2) $(0.4) $(0.4) $(0.3) Expenses (0.2) (0.2) (0.3) (0.3) (0.2) Credit Costs (0.0) (0.0) (0.0) (0.0) (0.0) Earnings Before Taxes $(0.1) $(0.1) $(0.1) $(0.1) $(0.1) 19 Note: Totals ma
Slide 20: Consumer Credit
Consumer Credit (Constant $B) 3Q'19 Loans Growth 90+ DPD Ratio NCL Ratio ($B) (% ) YoY % 3Q'19 2Q'19 3Q'18 3Q'19 2Q'19 3Q'18 Korea 17.0 5.4% (3.3)% 0.2% 0.2% 0.2% 0.5% 0.6% 0.4% Hong Kong 14.7 4.7% 19.3% 0.1% 0.1% 0.1% 0.1% 0.2% 0.1% Singapore 13.3 4.2% 9.0% 0.1% 0.1% 0.2% 0.3% 0.3% 0.4% Australia 9
Slide 21: Regional Credit Portfolio
Regional Credit Portfolio (3Q’19 EOP in $B) Geographic Loan Distribution Loan Composition $210 Commercial Banking Mexico Korea 5% 8% 5% Mortgages Hong Kong 5% 25% Personal & Other Singapore 4% Cards 1% GCB Taiwan 3% $105 North America Other EM 64% 8% 25% 69% 30% Developed Asia 3% 25% 20% DM EM Hong
Slide 22: Consumer Drivers
Consumer Drivers (1) 3Q'19 2Q'19 1Q'19 4Q'18 3Q'18 YoY QoQ GCB Digital Metrics (MM) North America: Active Digital Customers 19.2 18.8 18.8 18.5 18.1 6% 2% Active Mobile Customers 12.0 11.5 11.2 11.0 10.5 14% 5% International: Active Digital Customers 12.4 11.9 11.3 10.9 10.4 19% 4% Active Mobile Cus
Slide 23: Consumer Drivers (continued)
Consumer Drivers (continued) Digital / Mobile Customers(1) Agent Contact Rate(2) (MM) Digital Customers Mobile Customers 23% 31.5 55% 28.5 (11)% 21.7 25.6 1.37 17.8 14.0 1.31 1.22 3Q'17 3Q'18 3Q'19 3Q'17 3Q'18 3Q'19 LTM'17 LTM'18 LTM'19 E-Statement Penetration(3) E-Payment Penetration(4) ~600 bps 73
Slide 24: Institutional Drivers
Institutional Drivers ICG 3Q'19 2Q'19 1Q'19 4Q'18 3Q'18 YoY QoQ (Constant $B) Average Deposits: 735 709 688 683 661 11% 4% NA 342 320 313 315 303 13% 7% EMEA 195 195 185 180 175 12% 0% Latin America 29 28 27 27 26 12% 3% Asia 168 166 162 162 157 7% 2% EOP Deposits: 753 707 695 683 677 11% 6% NA 357
Slide 25: Preferred Stock Dividend Schedule
Preferred Stock Dividend Schedule ($MM) 2018 2019 2020 1Q $272 $262 $291 2Q 318 296 296 3Q 270 254 291 4Q 313 296 296 Total $1,173 $1,109 $1,175 25 Note: Totals may not sum due to rounding. Based on outstanding preferred stock as of October 15, 2019 and reflects the fixed dividend rate of each secur
Slide 26: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 2Q’19 $179.4 $152.8 $141.1 11.9% Impact of: Net Income 4.9 4.9 4.9 41 Preferred Stock Dividends (0.3) (0.3) (0.3) (2) Common Share Repurchases & Div
Slide 27: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 3Q’18 $178.0 $151.2 $140.4 11.7% Impact of: Net Income 18.7 18.7 18.7 158 Preferred Stock Dividends (1.1) (1.1) (1.1) (10) Common Share Repurchases
Slide 28: Common Equity Tier 1 Capital Ratio and Components
Common Equity Tier 1 Capital Ratio and Components ($MM) Common Equity Tier 1 Capital Ratio and Components(1) 3Q'19(2) 2Q'19 1Q'19 4Q'18 3Q'18 (3) Citigroup Common Stockholders' Equity $177,052 $179,534 $178,427 $177,928 $178,153 Add: Qualifying noncontrolling interests 145 154 144 147 148 Regulatory
Slide 29: Supplementary Leverage Ratio; TCE Reconciliation
Supplementary Leverage Ratio; TCE Reconciliation ($MM, except per share amounts) Supplementary Leverage Ratio and Components 3Q'19(1) 2Q'19 1Q'19 4Q'18 3Q'18 Common Equity Tier 1 Capital (CET1) $138,581 $141,125 $140,355 $139,252 $140,428 Additional Tier 1 Capital (AT1)(2) 19,818 18,322 18,357 18,87
Slide 30: Adjusted Results and FX Impact Reconciliation
Adjusted Results and FX Impact Reconciliation ($MM, except balance sheet items in $B) Citigroup 3Q'19 2Q'19 3Q'18 YTD'19 YTD'18 Global Consumer Banking 3Q'19 2Q'19 3Q'18 YTD'19 YTD'18 Reported Net Income $4,913 $4,799 $4,622 $14,422 $13,732 Reported Retail Banking Revenues $3,486 $3,574 $3,711 $10,5