Slide 1: Earnings Results Presentation First Quarter 2024
April 12, 2024 Earnings Results Presentation First Quarter 2024
Slide 2: Our strategy and path forward remains unchanged
Our strategy and path forward remains unchanged Our Vision Be the preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in our home market Delivering on our Investor Day priorities Transformation Invest for Growth Simplif
Slide 3: We now have a simpler structure aligned with five core businesses
We now have a simpler structure aligned with five core businesses 2021-2023 Priorities Priorities: 2024 and Beyond Execute on Transformation ✓ Developed a Refreshed Strategy ✓ Progressed on the Divestitures ✓ Simplified Organizational Structure ✓ Established a Winning Culture Banking Improve Busines
Slide 4: Progress against our priorities in first quarter 2024
Progress against our priorities in first quarter 2024 Transformation Strategic Execution Organization, Culture, and Talent • Retired 110+ technology applications, continuing to Strategy: • Completed the organizational changes to align our simplify our infrastructure and focus on strategic • Continue
Slide 5: First quarter 2024 results snapshot
First quarter 2024 results snapshot Revenues Net Income EPS 1Q24 $21.1 billion 1Q24 $3.4 billion 1Q24 $1.58 ∆ 1Q23 (2)% ∆ 1Q23 (27)% ∆ 1Q23 (28)% RoTCE(1) CET1 Capital Ratio(2) Tangible Book Value Per Share(3) 1Q24 7.6% 1Q24 13.5% 1Q24 $86.67 1Q23 10.9% 1Q23 13.4% ∆ 1Q23 3% First Quarter Key Highlig
Slide 6: Financial results overview
Financial results overview Financial Results 1Q24 Financial Overview Highlights ($ in MM, except EPS) 1Q24 % Δ QoQ % Δ YoY • Revenues Decreased (2)% YoY. Excluding divestiture-related impacts of $1 Net Interest Income 13,507 (2)% 1% billion, primarily consisting of the gain from the sale of the Indi
Slide 7: Quarterly expense trend and 2024 outlook
Quarterly expense trend and 2024 outlook Expense Trend Restructuring and Repositioning Summary ($ in B) Reported • In 1Q24, we took an additional $225 million of $13.3B $13.6B $13.5B $16.0B $14.2B Expenses restructuring charges, largely related to the Expenses ex-Divestitures & organizational simpli
Slide 8: Net interest income, average loans and deposits
Net interest income, average loans and deposits ($ in B) Net Interest Income 2.41% 2.48% 2.49% 2.46% QoQ YoY 2.42% Citigroup NIM $13.90 $(0.31) $0.16 $13.35 $13.83 $13.82 $13.51 Markets(1) 1.56 2.01 1.70 1.99 1.71 $(0.28) $0.15 11.79 11.89 12.13 11.83 11.80 $(0.03) $0.01 Ex-Markets 1Q23 2Q23 3Q23 4Q
Slide 9: U.S. cards and corporate credit overview
U.S. cards and corporate credit overview ($ in B) U.S. Cards Loans Corporate Lending Exposure EOP Loans by Segment EOP Loans by FICO Score(1) By Region By Grade Rating International Exposure Other, 10% Branded 67% 67% 68% Cards ≥ 660 IG 83% 83% 82% 86% 86% 85% International 44% IG / MNCs or U.S. sub
Slide 10: Capital and Balance Sheet Overview
Capital and Balance Sheet Overview ($ in B, except per share data) Risk-based Capital Metrics(1) End of Period Assets 1Q23 4Q23 1Q24 $2,455 QoQ YoY $2,412 $2,433 1% (1)% CET1 Capital 154 154 153 329 261 273 Cash 5% (17)% Standardized RWA 1,144 1,149 1,137 Investments, net 513 519 515 (1)% - CET1 Cap
Slide 11: Standardized CET1 Ratio Overview
Standardized CET1 Ratio Overview 1Q24 QoQ Standardized CET1 Ratio Walk CET1 Standardized Regulatory Requirement and Target Key drivers resulting in CET1 Capital ratio of 13.5%(1) • Well capitalized today with a CET1 Capital ratio of 13.5% which is ~120bps above our current 12.3% regulatory capital r
Slide 12: Services results, key metrics and statistics
Services results, key metrics and statistics Financial Results Highlights ($ in MM) 1Q24 % Δ QoQ % Δ YoY • Revenues Up 8% YoY, largely driven by continued momentum across both Net Interest Income 2,723 (6)% 4% TTS and Securities Services Non-Interest Revenue 793 42% 9% Treasury and Trade Solutions 3
Slide 13: Markets results, key metrics and statistics
Markets results, key metrics and statistics Financial Results Highlights ($ in MM) 1Q24 % Δ QoQ % Δ YoY • Revenues Down (7)% YoY, driven by Fixed Income (down (10)%), partially Rates and currencies 2,799 61% (21)% offset by Equities (up 5%) Spread products / other fixed income 1,352 62% 26% ‒ Fixed
Slide 14: Banking results, key metrics and statistics
Banking results, key metrics and statistics Financial Results Highlights ($ in MM) 1Q24 % Δ QoQ % Δ YoY • Revenues Up 49% YoY driven by Investment Banking 903 36% 35% ‒ Investment Banking revenues up 35%, driven by DCM and ECM as Corporate Lending (ex-gain/(loss))(1) 915 NM 34% improved market senti
Slide 15: Wealth results, key metrics and statistics
Wealth results, key metrics and statistics Financial Results Highlights ($ in MM) 1Q24 % Δ QoQ % Δ YoY • Revenues Down (4)% YoY, driven by lower NII (down (13)%) due to lower Private Bank 571 5% 1% deposit spreads and higher mortgage funding costs, partially offset by higher Wealth at Work 181 (14)%
Slide 16: U.S. Personal Banking results, key metrics and statistics
U.S. Personal Banking results, key metrics and statistics Financial Results Highlights ($ in MM) 1Q24 % Δ QoQ % Δ YoY • Revenues Up 10% YoY, driven by NII growth of 8% and lower partner Branded Cards 2,640 1% 7% payments Retail Services 1,900 16% 18% Retail Banking 638 (7)% 1% • Expenses Roughly fla
Slide 17: All Other (Managed Basis) results, key metrics and statistics
All Other (Managed Basis(1)) results, key metrics and statistics Financial Results Highlights ($ in MM) 1Q24 % Δ QoQ % Δ YoY • Revenues Down (9)% YoY, primarily driven by closed exits and wind-downs, Legacy Franchises 1,814 6% - as well as higher funding costs, partially offset by higher revenues in
Slide 18: Full Year 2024 Guidance and Medium-Term Targets
Full Year 2024 Guidance and Medium-Term(1) Targets Full Year 2024 Guidance Underlying Drivers of Medium-Term(1) Targets • Full year revenues: ~$80-81 billion • NIR driven by • 4-5% revenue CAGR as we continue to execute in Services, ‒ Fee growth in Services, driven by client wins and deepening of Ma
Slide 19: expectations and are subject to uncertainty and changes in circumstances. These statements are not
- expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results and capital and other financial condition may differ materially from those included in these statements due to a variety of factors. These
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Slide 21: Credit Trends for Branded Cards and Retail Services
Credit Trends for Branded Cards and Retail Services ($ in B) Branded Cards Retail Services 90+DPD NCL EOP 1Q23 4Q23 1Q24 EOP 1Q23 4Q23 1Q24 Loans $97.1 $111.1 $108.0 90+DPD NCL Loans $48.4 $53.6 $50.8 3.65% 6.32% 3.06% 5.44% 2.72% 2.47% 4.46% 4.53% 2.18% 4.08% 1.68% 3.30% 1.46% 1.50% 1.50% 2.60% 2.7
Slide 22: Net Investment Change in Argentina Since 4Q22; Argentina Financial Impacts
• Citi has operated in Argentina for over 100 years and currently serves approximately 1,300 clients, including 700 multinational clients (MNC) • Generally, we support these clients in Argentina as part of a broader institutional relationship which spans many other countries around the world • The p
Slide 23: Update on Russia exposure and net investment
Update on Russia exposure and net investment Overview • Ended nearly all of the institutional banking services offered in Russia as of March 31, 2023 • Remaining services are only those necessary to fulfill our remaining legal and regulatory obligations • Continue to wind down the consumer and local
Slide 24: 1Q24 Liquidity and investment portfolio metrics
1Q24 Liquidity and investment portfolio metrics ($ in B) Average LCR and Historical Trajectory (30-Day Stress) EOP Available Liquidity Resources(1) LCR 1Q23 1Q24 $552 Ratio 120% 117% $965 $473 $184 Comprised of unencumbered Other Liquidity securities and unused borrowing Resources = $410 capacity 1Q
Slide 25: Historical average deposit growth
Historical average deposit growth ($ in B) Total CAGR: 5.1% Services CAGR: 6.0% 1,343 1,370 1,334 1,323 1,316 1,361 1,363 1,338 1,315 1,320 1,326 1,305 1,304 1,321 1,268 102 81 79 104 99 93 1,234 109 92 97 100 99 123 121 116 118 114 118 116 111 111 113 1,115 116 114 115 110 105 100 1,066 1,090 104 1
Slide 26: Tangible common equity reconciliation and Citigroup returns
Tangible common equity reconciliation and Citigroup returns ($ in MM, except per share amounts) Tangible Common Equity and Tangible Book Value Per Share Return on Tangible Common Equity (RoTCE) 1Q24 4Q23 1Q23 1Q24 Citigroup Net Income $3,371 Common Stockholders' Equity $188,985 $187,853 $188,050 Les
Slide 27: FX impact
FX impact ($ in MM) Total Citigroup Legacy Franchises Foreign currency (FX) translation impact(1) 1Q24 4Q23 1Q23 QoQ YoY Foreign currency (FX) translation impact(1) 1Q24 4Q23 1Q23 QoQ YoY Total Revenues - as Reported 21,104 17,440 21,447 21% (2)% Mexico Revenues - as reported 1,571 1,460 1,294 8% 21
Slide 28: Reconciliation of adjusted results
Reconciliation of adjusted results ($ in MM) Total Citigroup Revenues, Net Interest Income and Expenses 1Q24 1Q24 4Q23 3Q23 2Q23 1Q23 % Δ QoQ % Δ YoY Total Citigroup Revenues - As Reported $21,104 $17,440 $20,139 $19,436 $21,447 21% (2)% Less: (1) Total Divestiture-Related Impacts on Revenues (12) (
Slide 29: All Other (Managed Basis) Trend
All Other (Managed Basis) Trend(1) All Other (Managed Basis) 1Q'24 4Q'23 1Q'23 QoQ% YoY% ($ in millions, except as otherwise noted) Legacy Franchises (Managed Basis) 1,814 1,708 1,805 6% - Corporate / Other 571 324 812 76% (30)% Total revenues 2,385 2,032 2,617 17% (9)% Total operating expenses 2,66
Slide 30: Reconciliation of adjusted results (cont.)
Reconciliation of adjusted results (cont.) ($ in MM) All Other(1) 1Q24 4Q23 1Q23 % Δ QoQ % Δ YoY All Other Revenues, Managed Basis $2,385 $2,032 $2,617 17% (9)% Add: All Other Divestiture-related Impact on Revenue(2) $(12) $(62) $1,018 81% NM All Other Revenues, (U.S. GAAP) $2,373 $1,970 $3,635 20%
Slide 31: Glossary
Glossary ACL: Allowance for Credit Losses EOP: End of Period NCC: National Clearing Counterparty ACLL: Allowance for Credit Losses on Loans EPS: Earnings per Share NCL: Net Credit Losses AFS: Available for Sale FDIC: Federal Deposit Insurance Corporation NII: Net Interest Income AOCI: Accumulated Ot
Slide 32: Footnotes
Footnotes Slide 4 1) Critical applications are those supporting critical business services, the disruption of which could result in imminent intolerable harm to clients, financial markets or Citi. 2) ina initiatives. In order to win, the initiatives must demonstrate clear business benefits, innovati
Slide 33: Footnotes (cont.)
Footnotes (cont.) Slide 6 1) Allowance for Credit Losses (ACL) Build / (Release) and Other provisions includes a net ACL build of approximately $21 million related to loans and unfunded lending commitments as well as other provisions of approximately $41 million relating to held-to-maturity (HTM) de
Slide 34: Footnotes (cont.)
Footnotes (cont.) Slide 8 1) Markets is defined as Fixed Income Markets and Equity Markets. 2) Gross Loan Yield is defined as gross interest revenue earned on loans divided by average loans. 3) Cost of Interest- -bearing deposits. Slide 9 1) FICO scores are updated as they become available. Citi adj
Slide 35: Footnotes (cont.)
Footnotes (cont.) Slide 12 1) Allowance for Credit Losses (ACL) Build / (Release) and Other provisions includes a net ACL build of approximately $46 million related to loans and unfunded lending commitments as well as other provisions of approximately $12 million relating to held-to-maturity (HTM) d
Slide 36: Footnotes (cont.)
Footnotes (cont.) Slide 14 1) Corporate Lending revenues exclude the impact of gains / (losses) on loan hedges and are non-GAAP financial measures. Gains / (losses) on loan hedges include the mark-to-market on credit derivatives and the mark-to-market on loans in the portfolio that are at fair value
Slide 37: Footnotes (cont.)
Footnotes (cont.) Slide 16 1) Allowance for Credit Losses (ACL) Build / (Release) and Other provisions includes a net ACL build of approximately $337 million related to loans and unfunded lending commitments as well as other provisions of approximately $3 million relating to benefits and claims, and
Slide 38: Footnotes (cont.)
Footnotes (cont.) Slide 18 1) Defined as 2025-2026. 2) Full year 2024 NII ex-Markets is a forward-looking non-GAAP financial measure. From time-to-time, management may discuss forward-looking non-GAAP financial measures, such as forward- looking estimates or targets for revenue, expenses, and RoTCE.
Slide 39: Footnotes (cont.)
Footnotes (cont.) Slide 26 1) Net income to common for All Other (Managed Basis) is reduced by preferred dividends of approximately $279 million in 1Q24. 2) ardized risk-weighted assets, the global systemically important banks (GSIB) surcharge, a simulation of TCE in severe stress environments, as w
Slide 40: Footnotes (cont.)
Footnotes (cont.) Slide 29 1) All Other (Managed Basis) reflects results on a managed basis, which excludes divestiture-related impacts, for all periods, related to Citi's divestitures of its Asia consumer banking businesses and the planned divestiture of Mexico consumer banking and small business a