Citigroup, Inc. · NYSE:C
Citigroup — Barclays Capital Global Financial Services Conference 2009
41 slides from Citigroup's conference presentation, Sep 16, 2009
Slide 1: Barclays Capital Global Financial Services Conference
Barclays Capital Global Financial Services Conference Vikram Pandit Chief Executive Officer September 16, 2009 CIT!
Slide 2: Agenda
Agenda » Citigroup — Progress over the last 18 months » Citi Holdings — Brokerage and Asset Management — Local Consumer Lending — Special Asset Pool » Citicorp — Institutional Clients Group — Regional Consumer Banking » Looking Ahead > Q&A
Slide 3: Progress Over The Last 18 Months
Progress Over The Last 18 Months a $B “000 | (23)% —~ (26)% , $15.7 = 375 ~S Smithy . . Barney $12.0 Quarterly 279 accounted tun-rate for 20.5K down of the ~$4B reduction 4Q'07 2Q'09 4Q'07 2Q'09 Structural Liquidity ‘ $T —~ 16)? 22 Usye) 71% $ y $1.8 82% Down >$500B from peak 4Q'07 2Q'09 4Q'07 2Q'09
Slide 4: Progress Over The Last 18 Months — Capital
Progress Over The Last 18 Months — Capital Tier 1 Capital and Tier 1 Common Ratio $B $45 $93 @Tier 1 Common aier 1 Capital $48 7.1% 11007- Capital TARP Total 4Q'07 2Q'09 Pro forma Markets Tangible Common Equity TBV/Share and BV/Share $B @TBV/Share @BV/Share $100 $14.16 ° $7.26 40 e 6.03 $ $4.37 $ i
Slide 5: Progress Over The Last 18 Months
Progress Over The Last 18 Months >» Formed new management team > Strengthened risk function » Restructured corporate governance — Added 7 new directors with strong financial services expertise
Slide 6: Citigroup Reorganization — Rationale
Citigroup Reorganization — Rationale > Focus around core historical strengths and clients’ needs > Shift away from businesses overly reliant on wholesale funding and developed markets credit creation to more stable and profitable businesses > Positioned against growing segments of financial services
Slide 7: Citigroup — Financials
Citigroup — Financials $B Bi Citicorp [J Citi Holdings Smith Barney GoS: $11.1B Goodwill $89.7 $81.5 ay Gea2| impairment: 387 242 So12 1\ $60.1 $50.3 $9.68 ' 18.4 ' 52.8 62.6 \ | $23.7 x i 32.0 | 2006 2007 008 | 1H'09 me 150 ; Holdings Net Marks: $(20.1) $(38.7) $(3.9) : Citicorp Net Marks: $1.0 $0.
Slide 8: Citigroup Reorganization
Citigroup Reorganization EOP 1H’'09 $B Revenues NetIncome Assets Deposits Citicorp $35.5 $10.7 $985 $702 os ( | Citi Holdings $19.2 $(3.9) $649 $88 Corporate/ Other (0.2) $(0.7) $213 $15 > (1) Incudes a pre-tax gain of $11. lion ($67 bilion ater-tax) arising from the 20'09 closing ofthe Morgan Stanl
Slide 9: Citigroup Reorganization
Citigroup Reorganization EOP 1H’09 $B Revenues NetIncome Assets Deposits spagesacaina Ai) $35 7 c 02 ie Q $49 $(3.9 $649 - Broker & Asset Management) 14.0 6.9 56 56 » Local Consumer Lending 10.4 (5.6) 392 32 * Special Asset Pool (5.2) (5.2) 201 ~ (1) Includes a pre-tax gain of $11.1 billion ($6.7 bi
Slide 10: Citi Holdings
Citi Holdings > Businesses and assets not core to our strategy EOP Assets ($B) $(249)B — Many attractive franchises (e.g. MSSB, Nikko, CitiFinancial, Primerica) > Main drivers of asset reduction: dispositions and run-off — Closed or signed 32 dispositions since December 2007 > No legal separation fr
Slide 11: Citi Holdings — Financials
Citi Holdings — Financials $38.7 a \ ' 20.5 $21.2 Gan $184 $ LUM ee $8.2 (s28) | 2006 2007 2008 =; 1H'09 1 Net Marks: $(20.1) —-$(38.7) | $(3.9) 2006 2007 2008 1H'09 $B ' ' BNCL a@LLR” S287 | ] H 1 \ eg | $17.9 i] Hi reseed $14.1 H i563) (83.9) 68 i , 1 $57 - 144 ' 05 ey 1 1 Ei z J ($35.6) ' T 2006
Slide 12: Holdings — Brokerage and Asset Management
Holdings — Brokerage and Asset Management EOP Assets ($B) Asset Composition Retail Alternative Latin America 6 65 gp Investments he jovagAsset Management 56 a ) Nikko [Ei MS Smith Barney JV 4Q'07 1Q'08 20Q'08 3Q'08 4Q'08 1Q'09 20°09 2Q’09 Total: $56B > Significant dispositions: — Closed Morgan Stanl
Slide 13: Holdings — Local Consumer Lending
Holdings — Local Consumer Lending EOP Assets ($B) Asset Composition Tae Mtg. Warehouse 2% ————_[es] MSR 2% | N.A. Mortgage 481 484 469 451 416 396 302 Other 6% keane Primerica 3% na. | Other Cards ] Loans Wi) Other NA. International Loans Loans 4Q'07 1Q'08 20'08 30°08 40°08 1Q'09 2Q'09 2Q’09 Total:
Slide 14: Holdings — Special Asset Pool
Holdings — Special Asset Pool EOP Assets ($B) ————_] $(150)B 351 346 299 262 241 214 204 4Q'07 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 Asset Composition Consumer & SMEs 4%, 3% Other Equity 7% SIVs 8% Securities at Ey4/ iS AFSIHTM Monolines 1% Highly Lev 5, Fin. Commit?” Marked to Market Loans, leases &
Slide 15: Citigroup Reorganization
Citigroup Reorganization EOP 1H’09 $B Revenues NetIncome Assets Deposits Citicorp $10.7 $985 $702 + Regional Consumer ( | | Banking 11.4 0.8 198 274 + Securities & Banking 19.3 8.1 724 118 » Transaction Services 49 1.9 63 310 Note: Totals may not sum due to rounding. 14 Citi
Slide 16: Citicorp — Financials
Citicorp — Financials $B 1 $62.6 $663 | $8 ' $62.8 i | $38.7 $32.0 Se 1 ' ' H | $15.0 1 \ 2006 2007 2008 | 1H09 { fj + " r Net Marks: $(1.0) soz 1 $49 2006 2007 2008 ' 1H'09 Cost of Cred Net Income $B | $B ! MNCL a@LiR® seo 4 $14.5 i \ $12.5 \ 1 $6.0 1 $10.7 \ \ ' $61! $1.9 ! ! : : 1 : i 2006 2007 2
Slide 17: Citicorp — Unparalleled Global Network
Citicorp — Unparalleled Global Network 2006-2012E GDP CAGR') Emerging Developed (1) Source: IMF $36B $985B $702B 59% 62% 44% Developed 41% 38% 56% = Emerging 4H'0S Revenues 20'09 Assets 20'09 Deposits Physical infrastructure Oi Serving clients/ no physical infrastructure
Slide 18: Citicorp — Institutional Clients Group
Citicorp — Institutional Clients Group > Global network — presence in over 100 markets — Market leader in Emerging Markets - Trading floors in 75 countries — Leading global corporate client franchise Physical infrastructure CO Serving clients/ no physical infrastructure @ Trading floor
Slide 19: Citicorp — Transaction Services
Citicorp — Transaction Services Global, scale driven business Solid Financial Performance Treasury and Trade Solutions © Liquidity & Supply Chai Investments ° intearetion a ¢ Payments ° Trade Finance ¢ Receivables ¢ Information © Trade Services e Fl Outsourcing Services Export & A © Wholesale Card -
Slide 20: Citicorp — Securities and Banking
Citicorp — Securities and Banking > Focus on risk-adjusted profitability and greater execution discipline > Refocus on client flow business, and capture market share in a resized client base » Leverage global footprint and emerging markets leadership » Invest to close product gaps — Equities, prime
Slide 21: Citicorp — ICG Client Franchise Remains Strong
Citicorp — ICG Client Franchise Remains Strong Securities & Banking Revenues $B @ Revenue (ex Marks, CVA) @ Marks & CVA $19.3 $14.2 $15.1 $11.0 $9.8 iz 2 fl 8 lL] [| 7 1H'06 2H'06 1H'07 2H'07 1H'08 2H'08 1H'09 Transaction Services Revenues $B $4.5 $4.9 $5.1 $4.9 : : : | | | | 1H'06 2H'06 1H'07 2H'07
Slide 22: Citicorp — Securities and Banking
Citicorp — Securities and Banking Momentum In Citi's U.S. Fixed Income Franchise “For the first time in many years, Citigroup meaningfully improved its performance in U.S. fixed income - congratulations! It took better advantage of the unprecedented changes in the competitive landscape than any othe
Slide 23: Citicorp — Regional Consumer Banking
Citicorp — Regional Consumer Banking Presence in 38 Countries % of Revenues") from Emerging Markets Latin America ¥ Loans $186B $268B 1H’09 Managed Revenues $14.5B 2009 Avg. Managed | | 20709 Avg. Deposits (1) 1H'09 GAAP Regional Consumer Banking revenues. a Note: Managed metrics are non-GAAP measur
Slide 24: Citicorp — North America Consumer Banking
Citicorp — North America Consumer Banking > 1H’09 Revenues: $1.8B > 1H’09 Managed Revenues: $5.1B > 2Q’09 Avg. Loans: $7.2B > 2Q’09 Avg. Deposits: $135.7B > Presence in 9 of top 10 MSAs, skewed towards savers and investors > 2Q’09 Avg. Managed Loans: $80.4B > 2Q’09 EOP Open Accounts: 25MM > 3rd larg
Slide 25: Citicorp — International Consumer Banking
Citicorp — International Consumer Banking rgely Focused on Emerging Markets 2Q’09 RCB Net Credit Margin / Avg. Loans \) 2Q'09 EOP Deposits $135Bn 11.3% $89 6.6% Bi Citigold $37 az NA? International EMEA LatAm Asia Target Market > Compete across all client and > Citigold offering product segments > C
Slide 26: Looking Ahead
Looking Ahead Profitability TARP Repayment Talent
Slide 27: Citigroup — Net Revenue Marks
Citigroup — Net Revenue Marks ($B) 0.8) (a9) 2° (0.8) Bi Citicorp = (2.9) BF Holdings A (12.9) te Citigroup (16.4) (15.0) 4Q'07 10'08 2@'08 3Q'08 4Q'08 1Q'09 2a'09 > Citi experienced an outsized share of industry mark-to market losses > Significant progress on de-levering and de-risking the balance
Slide 28: Citigroup — Provisions
Citigroup — Provisions (SB) HINCLs BLLR® am 2 LR ratio a2ry, 82% 1.37% 1.40% 12.7 10.3 2 49 g 5 2.6 24) 73 i. 19:07, 2Q'07, 3Q'07,_— ss 4Q‘O7,-— ss: 1Q'08 = 2Q'08S- 3Q'08_— 4Q'08_—S_ 10°09) 2Q'09 12.7 1.64% > $35.9B in allowance for loan losses at the end of 2Q’09 > Mortgages main driver of credit c
Slide 29: TARP Repayment
TARP Repayment $45 Billion U.S. Treasury Investment $25B $20B Common Stock Trust Preferred >» USG common stock not subject to any lockup and can be sold > Goal is to repay USG TruPs securities as soon as prudent 28 Cl
Slide 30: Wrap-up
Wrap-up > Turned the corner on main issues — Sustained progress over the last 18 months » Strong capital base to leverage the opportunity » Citicorp: positioned to benefit from growth in emerging markets revenue pools » Citi Holdings: reducing assets while optimizing value and mitigating risk » Focu
Slide 31: Q&A
Barclays Financial Services Conference Q&A CIT!
Slide 32: Appendix
Appendix 31
Slide 33: RCB - Average Loans 2Q'09
RCB - Average Loans 2Q’09 Commercial Commercial poop Banking lo Banking Saris 3% 1% Other 2% Mortgages 2% Personal 1% Mortgages Personal Latin America $27.8B Asia $61.8B Commercial Cards Banking Commercial 30% Banking 19% Other Cards ~—A% other Personal Mortgages Personal Mortgages (1) Managed basis
Slide 34: Holdings — LCL Loan Composition
Holdings — LCL Loan Composition Average % Avg. % of Total Loans Loans NCL 1H’09 90+ $B Ring-fenced( Ratio NCLs DPD% N.A. Loans $290.4 58% 5.77% 81.4% 5.26% + First mortgages 134.8 66 3.97 24.7 7.90 + Second mortgages 56.9 94 7.78 20.4 3.24 » Student 26.6 - 0.41 0.5 3.24 » Cards (Retail Partners) 22.
Slide 35: Holdings — LCL International Avg. Loans 2Q'09
Holdings — LCL International Avg. Loans 2Q’09 Cards 6 40% Personal / 62% Personal Real Estate 2Q'09 Tot 28B 2Q’09 Total: $12B EMEA by Coun Asia by Country Nordics @ UK Australia 4 10% Belgium 12% Korea | 7% Italy Spain India
Slide 36: Holdings — SAP Assets
Holdings — SAP Assets Total % of Assets Face Mark (% 20°09 $B Ring-fenced(") Value of Face) Securities at AFS/HTM @ $64.7 28% $84.3 77% Corporates ral 5 179 96 Prime and Non-U.S. MBS 162 34 24.4 77 Auction Rate Securities 8.3 15 12 74 Alt-A mortgages 95 99 18.4 52 Government Agencies 62 = 61 100 Oth
Slide 37: Holdings — SIV Assets
Holdings — SIV Assets 2Q’09 Total Average Credit Quality!) % $B AAAIAA AIB c/Other of Face Financial Inst. Debt $6.3 14% 25% 0% 76% Structured Finance MBS 3.4 15 4 2 69 CBOs/CLOs/CDOs 1.0 3 3 ” 61 CMBS 1.1 6 0 - 88 Student loans 24 15 - - 88 Credit Cards 1.4 9 - - 93 Others 0.6 1 1 1 68 Total Struct
Slide 38: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconcil jation of Most Directly Comparable GAAP Measures to Non-GAAP Measures Tier 1 Common, Tier 1 Common Ratio (Non-GAAP) Jun. 30, Dec. 31, In millions of dollars 2009 2007 Citigroup common stockholder's equity $ 78,001 $113,447 Less: Net unrealized losses on securities av
Slide 39: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of Most Directly Comparable GAAP Measures to Non-GAAP Measures Tangible Common Equity, Tangible Book Value per Share (Non-GAAP) In millions of dollars (except book value pershare) Jun. 30, 2009 Total Citigroup Stockholders’ Equity $ 152,302 Less: Preferred Stoc
Slide 40: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of Most Directly Comparable GAAP Measures to Non-GAAP Measures Managed Revenues (Non-GAAP) In billions of dollars 1H'09 FY 2008 FY 2007 FY 2006 GAAP Revenues Citicorp $ 35 § 66 $ 61 $ 503 Citi Holdings 19.2 (67) 19.5 37.9 Corporate/Other (0.2) (2.3) (2.3) (1.9)
Slide 41: Forward-looking statements
Certain statements in this document are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially f
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