Slide 1: Third Quarter 2021 Earnings Review
Citi | Investor Relations Third Quarter 2021 Earnings Review October 14, 2021
Slide 2: Overview
Overview Continued progress across the franchise in 3Q’21 – Significant earnings with net income of ~$4.6B, EPS of $2.15 and RoTCE of 11%(1) – Solid client engagement and fee growth across ICG – Strong growth in GCB deposits, investments, and purchase sales – Benign credit in the quarter as ACL rese
Slide 3: Delivering on our Priorities
Delivering on our Priorities Transformation Strategic Refresh Culture and Talent • Submitted plans to regulators • Continuing to build on strength in • Established accountability core franchises – TTS, BCMA, framework • Established CAO office Securities Services • Refreshing and augmenting with • Es
Slide 4: Citigroup – Summary Financial Results
Citigroup – Summary Financial Results ($MM, except EPS) 3Q'21 2Q'21 %r 3Q'20 %r YTD'21 %r • Revenues – $17.2B, down 1% YoY Revenues $17,154 $17,474 (2)% $17,302 (1)% $53,955 (7)% – Up 3% YoY excluding Operating Expenses 11,484 11,192 3% 10,964 5% 33,749 5% ~$680MM pre-tax loss on Efficiency Ratio 66
Slide 5: Institutional Clients Group
Institutional Clients Group ($MM) 3Q'21 QoQ %r YoY %r YTD'21 %r • Revenues – $10.8B, up 4% YoY Total Revenues $10,786 4% 4% $33,393 (5)% Banking(1) 5,818 4% 11% 17,069 6% – Primarily driven by strong Markets and Securities Services 5,015 4% (4)% 16,489 (11)% performance in Investment Banking, Equity
Slide 6: Institutional Clients Group – Revenues
Institutional Clients Group – Revenues ($MM) 3Q'21 QoQ %r YoY %r YTD'21 %r • Total Banking – $5.8B, up 11% YoY Product Revenues – TTS down 4% YoY, as higher fee Total Banking (1) $5,818 4% 11% $17,069 6% revenues were more than offset by the impact of lower deposit Treasury & Trade Solutions 2,291 0
Slide 7: Global Consumer Banking
Global Consumer Banking (Constant $MM) 3Q'21 QoQ %r YoY %r YTD'21 %r • Revenues – $6.3B, down 14% YoY Revenues $6,260 (8)% (14)% $20,117 (13)% North America 4,338 3% (4)% 12,967 (11)% – Down 5% excluding pre-tax loss International 1,922 (26)% (30)% 7,150 (16)% on Australia sale(1), as strong deposit
Slide 8: North America Consumer Banking
North America Consumer Banking ($MM) 3Q'21 QoQ %r YoY %r YTD'21 %r • Revenues – $4.3B, down 4% YoY Revenues $4,338 3% (4)% $12,967 (11)% – Branded Cards: Down 1% YoY, as Branded Cards 2,036 4% (1)% 6,086 (8)% higher purchase sales were more Retail Services 1,271 6% (6)% 3,770 (16)% than offset by hi
Slide 9: International Consumer Banking
International Consumer Banking (Constant $MM) 3Q'21 QoQ %r YoY %r YTD'21 %r • Revenues – $1.9B, down 30% YoY Revenues $1,922 (26)% (30)% $7,150 (16)% Latin America 1,038 (1)% (7)% 3,099 (12)% – Latin America: Down 7% YoY, Asia(1) 884 (43)% (46)% 4,051 (20)% driven by lower loan volumes and deposit s
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 3Q’20 2Q’21 3Q'21 EOP 3Q’20 2Q’21 3Q'21 Loans $273.5 $268.7 $260.1 Loans $178.6 $174.5 $174.3 3.10% 3.22% 2.73% 2.90% 2.51% 2.68% 2.33% 2.36% 2.63% 2.21% 1.83% 1.87% 1.93% 1.91% 1
Slide 11: Corporate / Other
Corporate / Other ($MM) 3Q'21 QoQ %r YoY %r YTD'21 %r • Revenues Revenues $108 (60)% NM $445 NM – Up YoY, driven by higher net revenue from the investment Expenses 519 37% (37)% 1,262 (12)% portfolio Credit Costs (81) 33% 40% (314) NM • Expenses EBT (330) NM 64% (503) 67% – Down YoY, primarily drive
Slide 12: Citigroup – Net Interest & Non-Interest Revenues
Citigroup – Net Interest & Non-Interest Revenues (Reported $B) Net Interest Revenue (NIR) 2.48% Citigroup NIM 2.17% 2.03% 3Q'21 3Q'21 YTD'21 2.00% 1.95% 1.92% 1.93% QoQ r YoY r YoY r $11.49 $11.08 Markets(1) 1.14 $10.49 $10.48 $10.17 $10.20 $10.40 $0.20 $(0.10) $(2.30) 1.47 1.35 1.30 1.29 $(0.12) $(
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) 13.0% 100.00 11.6% 11.8% 11.5% 11.7% 11.7% 11.8% 11.8% 11.7% 11.1% 11.0% 9.0% 90.00 6.6% 6.8% 7.0% 7.0% 6.3% 6.2% 6.0% 7.0% 5.8% 5.8% 80.00 5.0% 3.0% 70.00 1.0% $77.87
Slide 14: Forward-looking statements
Certain statements in this document are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Thes
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Slide 16: Appendix
Appendix Table of Contents 17. Citigroup Returns 26. Equity & CET1 Capital Drivers (QoQ) 18. Citigroup Returns Trend 27. Equity & CET1 Capital Drivers (YoY) 19. CECL Details 28. Common Equity Tier 1 Capital Ratio and Components 20. Estimated FX Impact on Key P&L Metrics 29. Supplementary Leverage Ra
Slide 17: Citigroup Returns
Citigroup Returns ($B) 3Q’21 Returns Average Average (2) Net Income GAAP ROA Allocated to Common Assets (bps) TCE(3) RoTCE GCB $1.3 $441 120 $35 15.0% ICG 3.4 1,809 75 94 14.5% Corp / Other (0.4)(1) 96 (46) 28 (5.3)% (1) Citigroup $4.4 $2,346 79 $157 11.0% YTD’21 Returns Average Average Net Income G
Slide 18: Citigroup Returns Trend
Citigroup Returns Trend Citigroup RoTCE 15.4% 12.1% 10.9% 8.1% 6.6% (1) (1) 2017 2018 2019 2020 YTD'21 ICG Return on Allocated TCE GCB Return on Allocated TCE 18.8% 20.2% 16.6% 16.9% 14.2% 14.4% 13.3% 13.2% 13.0% 1.9% 2017(1) 2018 2019 2020 YTD'21 2017(1) 2018 2019 2020 YTD'21 Note: Tangible common
Slide 19: CECL Details
CECL Details Allowance for Credit Losses ($B) North America: • Branded Cards: 8.3% • Retail Services: 11.5% Note: Totals may not sum due to rounding. 19 (1) Includes the impact of foreign exchange translation and other adjustments, on the opening balance of the ACL, substantially all of which flows
Slide 20: Estimated FX Impact on Key P&L Metrics
Estimated FX(1) Impact on Key P&L Metrics ($B) Year-over-Year Impact 3Q’21 2Q’21 1Q’21 4Q’20 3Q’20 Revenues $0.1 $0.3 $0.2 $(0.2) $(0.2) Expenses 0.1 0.3 0.1 (0.0) (0.0) Credit Costs 0.0 0.2 0.0 (0.0) (0.0) Earnings Before Taxes $(0.1) $(0.1) $0.1 $(0.2) $(0.1) 20 Note: Totals may not sum due to rou
Slide 21: Regional Credit Portfolio
Regional Credit Portfolio (3Q’21 EOP in $B) Geographic Loan Distribution Loan Composition Hong Kong 5% $281 Private Bank Singapore 4% Mexico 3% Markets Western Brazil 3% 38% Treasury and Trade Europe Solutions 17% Corporate Lending ICG Other EM $120 24% 15% 14% 3% North America 14% 32% Developed Asi
Slide 22: Consumer Credit
Consumer Credit (Constant $B) 22 Note: Totals may not sum due to rounding. Constant dollar excludes the impact of foreign exchange translation into U.S. dollars for reporting purposes and is a non-GAAP financial measure.
Slide 23: Institutional Drivers
Institutional Drivers (Constant $B) 23 Note: Totals may not sum due to rounding. Constant dollar excludes the impact of foreign exchange translation into U.S. dollars for reporting purposes and is a non-GAAP financial measure.
Slide 24: Consumer Drivers
Consumer Drivers Note: Constant dollar excludes the impact of foreign exchange translation into U.S. dollars for reporting purposes and is a non-GAAP financial measure. 24 (1) Excludes Citi mortgage. North America also excludes Citi Retail Services. (2) Asia GCB includes the results of operations of
Slide 25: Consumer Drivers (continued)
Consumer Drivers (continued) Digital / Mobile Customers(1) Agent Contact Rate(2) (MM) Digital Customers Mobile Customers 14% 24% 34.0 36.3 27.5 (26)% 31.9 24.7 22.2 1.22 1.00 0.90 3Q'19 3Q'20 3Q'21 3Q'19 3Q'20 3Q'21 LTM'19 LTM'20 LTM'21 E-Statement Penetration(3) E-Payment Penetration(4) ~900 bps 84
Slide 26: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 2Q’21 $184.2 $157.8 $150.4 11.8% Impact of: CECL 25% Provision Deferral(3) N/A N/A (0.4) (3) Net Income 4.6 4.6 4.6 37 Preferred Stock Dividends (0.
Slide 27: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 3Q’20 $175.9 $149.8 $142.2 11.7% Impact of: CECL 25% Provision Deferral(3) N/A N/A (2.2) (18) Net Income 23.1 23.1 23.1 182 Preferred Stock Dividend
Slide 28: Common Equity Tier 1 Capital Ratio and Components
Common Equity Tier 1 Capital Ratio and Components ($MM) Common Equity Tier 1 Capital Ratio and Components(1) Note: (1) Citi’s reportable CET1 Capital ratios were derived under the U.S. Basel III Standardized Approach framework as of September 30, 2021 and June 30, 2021, and the U.S. Basel III Advanc
Slide 29: Supplementary Leverage Ratio; TCE Reconciliation
Supplementary Leverage Ratio; TCE Reconciliation ($MM, except per share amounts) Supplementary Leverage Ratio and Components Tangible Common Equity and Tangible Book Value Per Share Note: (1) Preliminary. (2) Citi has elected to apply the modified transition provision related to the impact of the CE
Slide 30: Adjusted Results Reconciliation
Adjusted Results Reconciliation ($MM, except as otherwise noted) Note: Totals may not sum due to rounding. (1) Represents the full year 2017 one-time impact of the enactment of Tax Reform as well as the full year 2018 one-time impact of the finalization of the provisional component of the impact bas
Slide 31: Adjusted Results Reconciliation (continued)
Adjusted Results Reconciliation (continued) ($MM, except as otherwise noted) 31 Note: Totals may not sum due to rounding. Impact of Australia sale reflects pre-tax loss related to sale of Australia consumer business in 3Q’21 of approximately $680MM (approximately $580MM) after-tax). For additional i
Slide 32: FX Impact Reconciliation
FX Impact Reconciliation ($MM, except balance sheet items in $B) 32 Note: Totals may not sum due to rounding. (1) Asia GCB includes the results of operations of GCB activities in certain EMEA countries for all periods presented.