Slide 1: Fourth Quarter 2019 Earnings Review
Citi | Investor Relations Fourth Quarter 2019 Earnings Review January 14, 2020
Slide 2: Overview
Overview 4Q’19 results showed strong client engagement & momentum across the franchise – Solid revenue growth in Consumer with contribution from every region(1) – Strong performance in Fixed Income Markets and continued momentum in TTS, Investment Banking and the Private Bank – Broad based loan and
Slide 3: Citigroup – Summary Financial Results
Citigroup – Summary Financial Results(1) ($MM, except EPS) 4Q'19 3Q'19 %r 4Q'18 %r 2019 %r Revenues $18,378 $18,574 (1)% $17,124 7% $74,286 2% Operating Expenses 10,454 10,464 (0)% 9,893 6% 42,002 0% Efficiency Ratio 56.9% 56.3% 57.8% 56.5% Operating Margin 7,924 8,110 (2)% 7,231 10% 32,284 4% Net C
Slide 4: Citigroup – Full Year Comparison
Citigroup – Full Year Comparison ($B, except EPS) 2019 2018(1) YoY % r Underlying YoY % r(2,3) GCB Revenue $33.0 $32.3 2% GCB revenue by region ICG Revenue $39.3 $38.3 3% North America 4% Asia 4% Corp / Other Rev $2.0 $2.2 (8)% Latin America 4% Citi Revenue $74.3 $72.9 2% GCB 4% Expenses $42.0 $41.8
Slide 5: Global Consumer Banking
Global Consumer Banking (Constant $MM) 4Q'19 QoQ % r YoY % r 2019 %r Adj YoY (1) • Revenues %r – Up 4% YoY, with Revenues $8,459 2% 4% $32,971 2% 4% contribution from all North America 5,253 1% 4% 20,398 3% 4% regions International 3,206 2% 4% 12,573 2% 4% Expenses 4,373 (0)% (1)% 17,628 (0)% (0
Slide 6: North America Consumer Banking
North America Consumer Banking ($MM) 4Q'19 QoQ % r YoY % r 2019 %r Adj YoY • Revenues (1) %r – Up 4% YoY Revenues $5,253 1% 4% $20,398 3% 4% – Branded Cards: Up 10% YoY, Branded Cards 2,439 4% 10% 9,165 6% 8% reflecting volume growth and Retail Banking 1,108 (2)% (4)% 4,529 (2)% (2)% spread expa
Slide 7: International Consumer Banking
International Consumer Banking (Constant $MM) 4Q'19 QoQ % r YoY % r 2019 %r Adj YoY • Revenues (1) %r – Latin America: Up 6% YoY Revenues $3,206 2% 4% $12,573 2% 4% including episodic gains as well as Latin America 1,377 7% 6% 5,238 (1)% 4% growth in cards and improved Asia(2) 1,829 (2)% 4% 7,33
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 4Q'18 3Q'19 4Q'19 EOP 4Q'18 3Q'19 4Q'19 Loans $287.6 $289.1 $299.9 Loans $192.2 $190.6 $199.5 2.88% 2.84% 2.68% 2.72% 3.08% 3.07% 2.84% 2.90% 2.52% 2.51% 2.42% 2.45% 2.70% 2.68% 2
Slide 9: Institutional Clients Group
Institutional Clients Group ($MM) 4Q'19 QoQ % r YoY % r 2019 %r • Revenues Product Revenues – Total Banking(2): Up 3% YoY: Total Banking $5,538 3% 3% $21,888 3% • TTS up 3% YoY(1), driven by (1) - Treasury & Trade Solutions 2,608 2% 2% 10,293 4% strong client engagement and - Investment Banking 1,
Slide 10: Corporate / Other
Corporate / Other(1) ($MM) 4Q'19 QoQ % r YoY % r 2019 %r • Revenues – Up 8% YoY, reflecting gains Revenues $542 25% 8% $2,014 (8)% on investments, partially offset by the wind-down of legacy Expenses 635 31% 34% 2,150 (5)% assets Credit Costs (13) 13% 72% (75) 63% • Expenses EBT (80) NM NM (61) NM –
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% 2.63% 2.56% 4Q’19 2019 2019 Citigroup NIM YoY r YoY r YoY % r $11.47 $11.69 $11.93 $11.70 $11.93 $11.68 $12.00 $0.07 $1.37 3% $10.85 1.16 1.12 1.00 0.90 1.23 0.84 1.21 $0.2
Slide 12: Citigroup – Key Capital Metrics
Citigroup – Key Capital Metrics ($B, except TBV) Common Equity Tier 1 Capital Ratio(1) Supplementary Leverage Ratio(1) Tangible Book Value / Share(2) 100.00 15.0% 12.4% 12.1% 12.1% 11.9% 11.9% 11.9% 11.7% 11.6% 11.7% 13.0% 90.00 11.0% 9.0% 80.00 6.7% 6.7% 6.6% 6.5% 6.4% 6.4% 6.4% 6.3% 6.2% 7.0% 70.0
Slide 13: Conclusions
Conclusions 2019 results showed strong client engagement & momentum across the franchise – Balanced revenue contribution from both Consumer and Institutional businesses – Positive operating leverage and continued credit discipline generating EBT growth – Delivered 21% YoY EPS growth(1), including im
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. 2019 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 20
Slide 17: 2019 Returns
2019 Returns ($B) Average Average (2) Net Income GAAP ROA Allocated to Common Assets (bps) TCE(3) RoTCE GCB $5.7 $389 146 $33 17.3% ICG 12.9 1,493 86 89 14.6% (1) Corp / Other (0.3) 97 83 30 (1.0)% (1) Citigroup $18.3 $1,979 98 $151 12.1% Note: Effective as of 4Q’19, Citi’s commercial banking busine
Slide 18: Citigroup – LTM Efficiency Ratio and Expenses
Citigroup – LTM Efficiency Ratio and Expenses ($B) LTM Efficiency Ratio and Expenses 4Q’19 2019 Operating Efficiency 56.9% 56.5% 59.8% YoY r (bps) (89) (89) 59.3% 59.2% YoY r ex FX (bps) (99) (83) 58.5% 58.3% 58.2% 57.9% 57.7% 57.4% 57.2% 56.7% 56.7% 56.5% $42.34 $42.32 $42.47 $42.24 $42.23 $42.43 $
Slide 19: Estimated FX Impact on Key P&L Metrics
Estimated FX(1) Impact on Key P&L Metrics ($B) Year-over-Year Impact 4Q’19 3Q’19 2Q’19 1Q’19 4Q’18 Revenues $0.0 $(0.2) $(0.2) $(0.4) $(0.4) Expenses 0.0 (0.2) (0.2) (0.3) (0.3) Credit Costs 0.0 (0.0) (0.0) (0.0) (0.0) Earnings Before Taxes $(0.0) $(0.1) $(0.1) $(0.1) $(0.1) 19 Note: Totals may not
Slide 20: Consumer Credit
Consumer Credit (Constant $B) 4Q'19 Loans Growth 90+ DPD Ratio NCL Ratio ($B) (% ) YoY % 4Q'19 3Q'19 4Q'18 4Q'19 3Q'19 4Q'18 Korea 16.3 5.5% 1.6% 0.2% 0.2% 0.2% 0.6% 0.6% 0.5% Singapore 13.3 4.4% 12.1% 0.1% 0.1% 0.1% 0.3% 0.3% 0.3% Hong Kong 12.9 4.3% 20.5% 0.0% 0.0% 0.0% 0.2% 0.2% 0.2% Australia 9.
Slide 21: Regional Credit Portfolio
Regional Credit Portfolio (4Q’19 EOP in $B) Geographic Loan Distribution Loan Composition Korea 5% $209 Mortgages Mexico 6% Singapore 4% Personal, Small 25% Business & Other Hong Kong 4% 2% Cards Taiwan 3% GCB North America Other EM 7% $91 67% 73% 35% Developed Asia 3% 40% 25% DM EM Hong Kong 5% $26
Slide 22: Consumer Drivers
Consumer Drivers (1) 4Q'19 3Q'19 2Q'19 1Q'19 4Q'18 YoY QoQ GCB Digital Metrics (MM) North America: Active Digital Customers 19.6 19.3 18.8 18.8 18.5 6% 1% Active Mobile Customers 12.4 12.2 11.5 11.2 11.0 13% 2% International: Active Digital Customers 12.9 12.6 11.9 11.3 10.9 19% 2% 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% 32.5 52% 29.4 22.8 (6)% 26.4 18.9 1.34 15.0 1.30 1.26 4Q'17 4Q'18 4Q'19 4Q'17 4Q'18 4Q'19 FY'17 FY'18 FY'19 E-Statement Penetration(3) E-Payment Penetration(4) ~500 bps 74% 75
Slide 24: Institutional Drivers
Institutional Drivers ICG 4Q'19 3Q'19 2Q'19 1Q'19 4Q'18 YoY QoQ (Constant $B) Average Deposits: 794 774 747 727 723 10% 3% NA 392 374 351 346 349 12% 5% EMEA 194 196 196 186 180 7% (1)% Latin America 37 35 34 33 32 15% 4% Asia 172 168 166 162 162 6% 2% EOP Deposits: 768 802 751 739 727 6% (4)% NA 37
Slide 25: Preferred Stock Dividend Schedule
Preferred Stock Dividend Schedule ($MM) 2019 2020 2021 1Q $262 $291 $291 2Q 296 253 253 3Q 254 291 291 4Q 296 253 253 Total $1,109 $1,088 $1,088 25 Note: Totals may not sum due to rounding. Based on outstanding preferred stock as of January 14, 2020 and reflects the fixed dividend rate of each secur
Slide 26: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 3Q’19 $176.9 $150.7 $138.6 11.6% Impact of: Net Income 5.0 5.0 5.0 42 Preferred Stock Dividends (0.3) (0.3) (0.3) (2) Common Share Repurchases & Div
Slide 27: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 4Q’18 $177.8 $151.1 $139.3 11.9% Impact of: Net Income 19.4 19.4 19.4 164 Preferred Stock Dividends (1.1) (1.1) (1.1) (9) Common Share Repurchases &
Slide 28: Common Equity Tier 1 Capital Ratio and Components
Common Equity Tier 1 Capital Ratio and Components ($MM) Common Equity Tier 1 Capital Ratio and Components(1) 4Q'19(2) 3Q'19 2Q'19 1Q'19 4Q'18 Citigroup Common Stockholders' Equity(3) $175,414 $177,052 $179,534 $178,427 $177,928 Add: Qualifying noncontrolling interests 154 145 154 144 147 Regulatory
Slide 29: Supplementary Leverage Ratio; TCE Reconciliation
Supplementary Leverage Ratio; TCE Reconciliation ($MM, except per share amounts) Supplementary Leverage Ratio and Components 4Q'19(1) 3Q'19 2Q'19 1Q'19 4Q'18 Common Equity Tier 1 Capital (CET1) $137,882 $138,581 $141,125 $140,355 $139,252 (2) Additional Tier 1 Capital (AT1) 18,010 19,452 18,322 18,3
Slide 30: Adjusted Results Reconciliation
Adjusted Results Reconciliation ($MM, except EPS) Citigroup 4Q'19 3Q'19 4Q'18 2019 2018 Reported Income Taxes $703 $1,079 $1,001 $4,430 $5,357 Impact of: Tax Reform(1) - - (94) - (94) Adjusted Income Taxes $703 $1,079 $1,095 $4,430 $5,451 Reported Net Income $4,979 $4,913 $4,313 $19,401 $18,045 Impa
Slide 31: FX Impact Reconciliation
FX Impact Reconciliation ($MM, except balance sheet items in $B) Citigroup 4Q'19 3Q'19 4Q'18 2019 2018 Global Consumer Banking 4Q'19 3Q'19 4Q'18 2019 2018 Reported EOP Assets $1,951 $2,015 $1,917 $1,951 $1,917 Reported Retail Banking Revenues $3,124 $3,117 $3,029 $12,549 $12,627 Impact of FX Transla