Slide 1: Second Quarter 2021 Earnings Review
Citi | Investor Relations Second Quarter 2021 Earnings Review July 14, 2021
Slide 2: Overview
Overview Continued progress across the franchise in 2Q’21 – Significant earnings with ~$6.2B of net income, including ~$2.4B reserve release reflecting a continued improvement in the macro environment and portfolio quality – Solid client engagement and fee growth across ICG, although normalization i
Slide 3: Citigroup – Summary Financial Results
Citigroup – Summary Financial Results ($MM, except EPS) 2Q'21 1Q'21 %r 2Q'20 %r 1H'21 %r Revenues $17,474 $19,327 (10)% $19,766 (12)% $36,801 (9)% Operating Expenses 11,192 11,073 1% 10,460 7% 22,265 6% Efficiency Ratio 64.0% 57.3% 52.9% 60.5% Operating Margin 6,282 8,254 (24)% 9,306 (32)% 14,536 (2
Slide 4: Institutional Clients Group
Institutional Clients Group ($MM) 2Q'21 QoQ % r YoY % r 1H'21 %r • Revenues Total Revenues $10,387 (15)% (14)% $22,607 (8)% – Down 14% YoY, driven mainly by the (2) Banking 5,603 (1)% (1)% 11,251 4% decline in Fixed Income Markets Markets and Securities Services 4,821 (28)% (30)% 11,474 (14)%
Slide 5: Institutional Clients Group – Revenues
Institutional Clients Group – Revenues ($MM) • Total Banking – TTS down 2% ex-FX(1) YoY, as higher fee revenues were more than offset by (2) the impact of lower interest rates – Investment Banking up 1% YoY, as (2) higher M&A and equity underwriting revenues were largely offset by a (2) decline in d
Slide 6: Global Consumer Banking
Global Consumer Banking (Constant $MM) 2Q'21 QoQ % r YoY % r 1H'21 %r • Revenues Revenues $6,820 (3)% (10)% $13,857 (12)% North America 4,201 (5)% (11)% 8,629 (13)% – Down 10% YoY, as strong deposit International 2,619 (0)% (6)% 5,228 (10)% growth and momentum in investment management were Expen
Slide 7: North America Consumer Banking
North America Consumer Banking ($MM) • Revenues – Down 11% YoY – Branded Cards: Down 12% YoY, reflecting lower average loans – Retail Services: Down 14% YoY, reflecting lower average loans – Retail Banking: Down 7% YoY, primarily driven by lower deposit spreads and lower mortgage revenues • Expenses
Slide 8: International Consumer Banking
International Consumer Banking (Constant $MM) 2Q'21 QoQ % r YoY % r 1H'21 %r • Revenues Revenues $2,619 (0)% (6)% $5,228 (10)% – Latin America: Down 11% YoY, Latin America 1,053 2% (11)% 2,061 (14)% driven by lower loan volumes and Asia(1) 1,566 (2)% (3)% 3,167 (8)% deposit spreads, partially of
Slide 9: 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‘20 1Q’21 2Q'21 EOP 2Q‘20 1Q’21 2Q'21 Loans $277.9 $268.5 $270.9 Loans $181.1 $171.9 $174.5 3.10% 3.22% 2.73% 2.84% 2.90% 2.52% 2.51% 2.68% 2.33% 2.36% 2.63% 2.21% 1.83% 1.87% 1
Slide 10: Corporate / Other
Corporate / Other ($MM) • Revenues – Down 8% YoY, as positive marks on investments were more than offset by the absence of AFS gains • Expenses – Up 14%, primarily driven by the impact of foreign exchange • Credit Costs – Down YoY, driven by a net ACL release of $102MM on legacy portfolio • Income T
Slide 11: Citigroup – Net Interest & Non-Interest Revenues
Citigroup – Net Interest & Non-Interest Revenues (Reported $B) Net Interest Revenue (NIR) 2.48% Citigroup NIM 2.17% 2Q'21 2Q'21 1H'21 2.03% 2.00% 1.95% 1.92% QoQ r YoY r YoY r $11.49 $11.08 Markets(1) 1.14 $10.49 $10.48 $10.17 $10.20 $0.03 $(0.88) $(2.21) 1.47 1.35 1.30 1.28 1.40 $0.12 $(0.07) $0.08
Slide 12: Citigroup – Key Capital Metrics
Citigroup – Key Capital Metrics Common Equity Tier 1 Capital Ratio(1) Supplementary Leverage Ratio(1) Tangible Book Value / Share(2) 11.9% 11.9% 13.0% 100.00 11.6% 11.8% 11.5% 11.7% 11.7% 11.8% 11.1% 11.0% 9.0% 90.00 6.6% 6.8% 7.0% 7.0% 6.4% 6.3% 6.2% 6.0% 5.9% 7.0% 80.00 5.0% 3.0% 70.00 1.0% $77.87
Slide 13: Conclusions
Conclusions 1H’21 results showed continued progress and solid momentum across the franchise – Significant earnings with ~$14B of net income, including ~$6.3B reserve release – Solid client engagement and strong underlying growth in fees across ICG including in TTS, Investment Banking, Private Bank a
Slide 14: Forward-looking statements
Certain statements in this document are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Thes
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Slide 16: Appendix
Appendix Table of Contents 17. Citigroup Returns 26. Consumer Drivers (continued) 18. Citigroup Returns Trend 27. Preferred Stock Dividend Schedule 19. Citigroup – Net Interest Revenue 28. Equity & CET1 Capital Drivers (QoQ) 20. CECL Details 29. Equity & CET1 Capital Drivers (YoY) 21. Estimated FX I
Slide 17: Citigroup Returns
Citigroup Returns ($B) 2Q’21 Returns Average Average (2) Net Income GAAP ROA Allocated to Common Assets (bps) TCE(3) RoTCE GCB $1.8 $437 168 $35 20.8% ICG 3.8 1,806 85 94 16.4% Corp / Other 0.3 (1) 99 220 28 4.1% Citigroup $5.9(1) $2,342 106 $157 15.2% 1H’21 Returns Average Average Net Income GAAP R
Slide 18: Citigroup Returns Trend
Citigroup Returns Trend Citigroup RoTCE 17.6% 12.1% 10.9% 8.1% 6.6% (1) (1) 2017 2018 2019 2020 1H'21 ICG Return on Allocated TCE GCB Return on Allocated TCE 21.0% 22.8% 16.6% 16.9% 14.2% 14.4% 13.3% 13.2% 13.0% 1.9% 2017(1) 2018 2019 2020 1H'21 2017(1) 2018 2019 2020 1H'21 Note: Tangible common equ
Slide 19: Citigroup – Net Interest Revenue
Citigroup – Net Interest Revenue Net Interest Revenue (NIR) (Constant $B) 2.48% Citigroup NIM 2.17% 2Q'21 2Q'21 1H'21 2.03% 2.00% 1.95% 1.92% QoQ r YoY r YoY r $11.56 $11.28 $10.61 $10.51 $10.20 $0.01 $(1.08) $(2.45) Markets(1) 1.14 $10.19 1.51 1.36 1.30 1.29 $0.12 $(0.11) $0.05 1.40 Ex-Markets 10.4
Slide 20: CECL Details
CECL Details Allowance for Credit Losses ($B) 1Q'21 Balance 2Q'21 Balance ACLL / Balance 1Q'21 2Q'21 Loans as of Build / FX / as of Build / FX / as of (1) (1) (1) (1) as of 12/31/20 (Release) Other 3/31/21 (Release) Other 6/30/21 6/30/21 Cards $16.8 $(1.5) $(0.0) $15.2 $(1.1) $0.0 $14.2 9.72% All ot
Slide 21: Estimated FX Impact on Key P&L Metrics
Estimated FX(1) Impact on Key P&L Metrics ($B) Year-over-Year Impact 2Q’21 1Q’21 4Q’20 3Q’20 2Q’20 Revenues $0.3 $0.2 $(0.2) $(0.2) $(0.4) Expenses 0.3 0.1 (0.0) (0.0) (0.3) Credit Costs 0.2 0.0 (0.0) (0.0) (0.1) Earnings Before Taxes $(0.1) $0.1 $(0.2) $(0.1) $(0.1) 21 Note: Totals may not sum due
Slide 22: Regional Credit Portfolio
Regional Credit Portfolio (2Q’21 EOP in $B) Geographic Loan Distribution Loan Composition Hong Kong 5% $280 Private Bank Singapore 4% Mexico 4% Markets Western Brazil 3% 39% Treasury and Trade Europe Solutions 17% Corporate Lending ICG Other EM 24% $120 14% 15% 3% North America 14% 31% Developed Asi
Slide 23: Consumer Credit
Consumer Credit (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: Institutional Drivers
Institutional Drivers (Constant $B) 24 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 25: Consumer Drivers
Consumer Drivers (2) Asia GCB 2Q'21 1Q'21 4Q'20 3Q'20 2Q'20 YoY QoQ (Constant $B) Cards Purchase Sales 19.8 20.1 21.1 19.0 16.0 23% (1)% Cards Average Loans 16.6 17.2 17.4 17.4 17.7 (6)% (3)% Cards EOP Loans 16.4 16.8 17.6 17.2 17.4 (6)% (3)% RB Average Loans 66.6 65.9 65.7 65.1 64.3 4% 1% RB EOP Lo
Slide 26: Consumer Drivers (continued)
Consumer Drivers (continued) Digital / Mobile Customers(1) Agent Contact Rate(2) (MM) Digital Customers Mobile Customers 16% 29% (25)% 35.8 33.5 26.7 30.8 23.9 20.7 1.24 1.06 0.93 2Q'19 2Q'20 2Q'21 2Q'19 2Q'20 2Q'21 LTM'19 LTM'20 LTM'21 E-Statement Penetration(3) E-Payment Penetration(4) ~700 bps 82
Slide 27: Preferred Stock Dividend Schedule
Preferred Stock Dividend Schedule ($MM) 2020 2021 2022 1Q $291 $292 $266 2Q 253 253 228 3Q 284 266 266 4Q 267 228 228 Total $1,095 $1,040 $988 27 Note: Totals may not sum due to rounding. Based on outstanding preferred stock as of July 14, 2021.
Slide 28: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 1Q’21 $182.3 $156.1 $148.9 11.8% Impact of: CECL 25% Provision Deferral(3) N/A N/A (0.6) (5) Net Income 6.2 6.2 6.2 49 Preferred Stock Dividends (0.
Slide 29: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($B, except basis points (bps)) Tangible CET1 Common CET1 Common Capital Equity Capital(2) Equity(1) Ratio(2) (bps) 2Q’20 $173.7 $148.2 $139.6 11.5% Impact of: CECL 25% Provision Deferral(3) N/A N/A (1.7) (14) Net Income 21.6 21.6 21.6 173 Preferred Stock Dividend
Slide 30: Common Equity Tier 1 Capital Ratio and Components
Common Equity Tier 1 Capital Ratio and Components ($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 June 30, 2021, and the U.S. Basel III Advanced Approaches framework
Slide 31: Supplementary Leverage Ratio; TCE Reconciliation
Supplementary Leverage Ratio; TCE Reconciliation ($MM, except per share amounts) Supplementary Leverage Ratio and Components Tangible Common Equity and Tangible Book Value Per Share Note: (1) Preliminary. (2) Citi has elected to apply the modified transition provision related to the impact of the CE
Slide 32: Adjusted Results Reconciliation
Adjusted Results Reconciliation ($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 33: FX Impact Reconciliation
FX Impact Reconciliation ($MM, except balance sheet items in $B) 33 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.