Slide 1: Earnings Results Presentation First Quarter 2022
Earnings Results Presentation First Quarter 2022 April 14, 2022
Slide 2: Progress Against Priorities in 1Q22
Progress Against Priorities in 1Q22 Transformation Strategic Execution Culture and Talent ✓ Incorporated regulatory feedback into plans ✓ Announced 13 Asia & EMEA consumer exits ✓ Enhanced culture of accountability and Mexico consumer, small business & ✓ Over 5,000 non-technology employees and a mid
Slide 3: First Quarter Results Snapshot
First Quarter Results Snapshot Revenues Net Income EPS 1Q22 $19.2 billion 1Q22 $4.3 billion 1Q22 $2.02 vs. 1Q21 (2)% vs. 1Q21 (46)% vs. 1Q21 (44)% RoTCE(1) CET1 Capital Ratio(2) Tangible Book Value Per Share(3) 1Q22 10.5% 1Q22 11.4% 1Q22 $79.03 1Q21 20.1% 4Q21 12.2% vs. 1Q21 5% First Quarter Key Hig
Slide 4: Financial Results Overview
Financial Results Overview Financial Results Financial Overview Highlights • Revenues – Down 2% YoY, as strength in NII, driven by Services and ($ in MM, except EPS) 1Q22 % Δ vs 4Q21 % Δ vs 1Q21 PBWM was more than offset by lower non-interest revenue across businesses Net Interest Income $10,871 0%
Slide 5: 1Q22 YoY Expense Walk
1Q22 YoY Expense Walk ($ in B) +~15% +~10% ~5% $13.2 Guidance ~4% $12.6 for FY 2022 • Goodwill 5-6% ~2% ~1% Impairment excluding ~3% • Non-consent • Korea VERP 2022 • Transactional order risk & divestiture $11.4 costs primarily impacts • Infrastructure controls in Markets development in • Inflation/
Slide 6: Update on Russia
Update on Russia Russia Exposure Overview ($ in B) 4Q21 1Q22 Δ vs 4Q21 • In April 2021, announced our intent to exit our consumer business in Russia Loans $2.9 $2.3 ($0.6) as part of the 13 Asia & EMEA exits AFS Securities 1.5 0.9 (0.6) Derivatives MTM (less CVA) 0.3 0.0 (0.3) • In March 2022, decid
Slide 7: Net Interest Income, Average Loans and Deposits
Net Interest Income, Average Loans and Deposits ($ in B) Net Interest Income 2.02% 1.97% 1.99% 1.98% 2.05% 1Q22 1Q22 Citigroup NIM QoQ r YoY r $10.51 $10.69 $10.82 $10.87 $0.05 $0.37 $10.48 Markets(1) 1.31 1.38 1.27 1.25 1.11 $(0.14) $(0.20) 9.20 9.10 9.43 9.57 9.76 $0.19 $0.57 Ex-Markets 1Q21 2Q21
Slide 8: Capital and Balance Sheet
Capital and Balance Sheet ($ in B) Risk-based Capital Metrics(1) End of Period Assets 1Q21 4Q21 1Q22 CET1 Capital $149 $149 $144 $2,314 $2,394 $2,291 272 Standardized RWAs 1,281 1,219 1,265 Cash 325 262 513 515 CET1 Capital Ratio - Standardized 11.6% 12.2% 11.4% Investments, net 473 Advanced RWAs 1,
Slide 9: 1Q22 QoQ Standardized CET1 Ratio Walk
1Q22 QoQ Standardized CET1 Ratio Walk • +35 bps 1Q22 Net Income • (36) bps Capital Distribution – Share repurchases, common and preferred dividends • (35) bps AOCI (Unrealized AFS Gains / (Losses)) – Impact of higher rates on the available-for-sale securities in our investment portfolio • (15) bps D
Slide 10: Institutional Clients Group Results
Institutional Clients Group Results Institutional Clients Group Results Institutional Clients Group Highlights ($ in MM) 1Q22 % Δ vs 4Q21 % Δ vs 1Q21 • Revenues – Down 2% YoY, as momentum in TTS and Securities Services was more than offset by lower revenues in Investment Net Interest Income $3,784 0
Slide 11: ICG Revenue Items and Selected Business Drivers and Statistics
ICG Revenue Items and Selected Business Drivers and Statistics Revenues Highlights ($ in MM) 1Q22 % Δ vs 4Q21 % Δ vs 1Q21 Services Net Interest Income $1,659 15% 18% Non-interest revenue 931 (3)% 19% • Treasury and Trade Solutions revenues were up 18% YoY, driven by Treasury and Trade Solutions Reve
Slide 12: Personal Banking & Wealth Management Results
Personal Banking & Wealth Management Results Personal Banking & Wealth Management Results Personal Banking & Wealth Management Highlights ($ in MM) 1Q22 % Δ vs 4Q21 % Δ vs 1Q21 • Revenues – Down 1% YoY, as growth in NII was more than offset by Net Interest Income $5,385 1% 4% lower non-interest reve
Slide 13: PBWM Revenues Items and Selected Business Drivers and Statistics
PBWM Revenues Items and Selected Business Drivers and Statistics Revenues Highlights ($ in MM) 1Q22 % Δ vs 4Q21 % Δ vs 1Q21 Branded Cards $2,090 1% (1)% • Branded Cards revenues were down 1% YoY, reflecting higher payment Retail Services 1,299 1% (0)% rates and higher acquisition and rewards costs R
Slide 14: Legacy Franchises Results
Legacy Franchises Results Legacy Franchises Results Legacy Franchises Highlights ($ in MM) 1Q22 % Δ vs 4Q21 % Δ vs 1Q21 • Revenues – Down 14% YoY, driven by lower revenue across the 13 Net Interest Income $1,508 (2)% (4)% Asia & EMEA exit markets – largely due to the Korea wind down as well as muted
Slide 15: Corporate / Other Results
Corporate / Other Results Corporate / Other Results Corporate / Other Highlights ($ in MM, unless otherwise noted) 1Q22 % Δ vs 4Q21 % Δ vs 1Q21 • Revenues – Up YoY reflecting largely driven by higher net revenue Net Interest Income $194 (1)% NM from the investment portfolio Non-Interest Revenue (4)
Slide 16: Forward-looking statements
Certain statements in this presentation are “forward-looking statements” within the meaning of the rules and regulations of the Private Securities Litigation and Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumst
Slide 17: Citi
CItI
Slide 18: Citigroup Returns
Citigroup Returns ($ in $B) 1Q22 Returns LTM’22 Returns Average Average Net Income Allocated Net Income Allocated to Common TCE(2) RoTCE(3) to Common TCE(2) RoTCE(3) ICG $2.6 $96 11.2% ICG $11.5 $96 12.0% PBWM 1.9 32 23.3% PBWM 7.2 32 22.1% Legacy Franchises (0.4) 12 (13.1)% Legacy Franchises (0.7)
Slide 19: Branded Cards and Retail Services – Credit Trends
Branded Cards and Retail Services – Credit Trends ($ in $B) Branded Cards Retail Services NCL 90+ DPD NCL 90+ DPD EOP 1Q21 4Q21 1Q22 EOP 1Q21 4Q21 1Q22 Loans $78.5 $87.9 $85.9 Loans $42.5 $46.0 $44.1 5.53% 4.51% 3.80% 3.45% 3.17% 3.00% 3.09% 2.84% 2.43% 2.36% 2.23% 2.31% 2.10% 1.73% 1.46% 1.33% 1.79
Slide 20: Regional Credit Portfolio
Regional Credit Portfolio (1Q’22 EOP in $B) ICG PBWM Legacy Franchises Signed Exit Markets EOP Geographic Loan Distribution Hong Kong 4% Loans(1): ~$30B Singapore 4% Singapore 6% North Brazil 4% Emerging EMEA Hong Kong 7% America Mexico 3% 5% Developed 9% EMEA 20% China 3% EMEA 4% China 8% Korea 31%
Slide 21: Equity & CET1 Capital Drivers (QoQ)
Equity & CET1 Capital Drivers (QoQ) ($ in B, except basis points (bps)) CET1 Common Tangible CET1 Capital Equity Common Equity(1) Capital(2) Ratio(2) (bps) 4Q21 $183.0 $157.1 $149.3 12.2% Impact of: CECL Transition Provision(3) N/A N/A (0.8) (6) Net Income 4.3 4.3 4.3 35 Preferred Stock Dividends (0
Slide 22: Equity & CET1 Capital Drivers (YoY)
Equity & CET1 Capital Drivers (YoY) ($ in B, except basis points (bps)) CET1 Common Tangible CET1 Capital Equity Common Equity(1) Capital(2) Ratio(2) (bps) 1Q21 $182.3 $156.1 $148.9 11.6% Impact of: CECL Transition Provision(3) N/A N/A (2.1) (17) Net Income 18.3 18.3 18.3 146 Preferred Stock Dividen
Slide 23: 1Q22 Exit Markets Contribution
1Q22 Exit Markets Contribution ($ in MM) 1Q22 Exit Markets Contribution Excluding the Impact of Divestitures(1,2) Signed Exit Markets Not Yet Signed (1) & Korea Exit Markets(2) Revenues $664 $1,310 Expenses 688 1,000 Credit Costs 31 104 EBT (55) 206 Allocated Average TCE ($B) 6 6 Average Loans ($B)
Slide 24: Planned Execution Timelines for Signed Exit Markets
Planned Execution Timelines for Signed Exit Markets 2021 2022 2023 Buyer Country 2H’21 1H’22 2H’22 1H’23 2H’23 NAB Australia Closing Signed Union Bank Philippines Closing Signed Thailand Closing Signed Malaysia Closing Signed UOB Indonesia Closing Signed Vietnam Closing Signed DBS Taiwan Closing Sig
Slide 25: Benchmark Debt & Securitization: Issuance & Maturities
Benchmark Debt & Securitization: Issuance & Maturities ($ in B) Issuance and Maturities Trends Full Year 2022 Expectations Parent Bank Parent Bank Full Year 2021 1Q22 Full Year 2022 Maturities & Issuance Maturities & Issuance Maturities & Issuance Redemptions Redemptions Redemptions $15 $14(3) ~$15-
Slide 26: Reconciliation of Adjusted Results
Reconciliation of Adjusted Results Citigroup ($ in MM) 1Q22 1Q21 LTM'22 Reported Revenues $19,186 $19,667 Less: Impact of Gain / (Loss) on sale related to Asia Divestitures (1) (118) - (2) Held for sale accounting reclass 71 - Adjusted Revenues $19,233 $19,667 Reported Expenses $13,165 $11,413 Less:
Slide 27: Reconciliation of Adjusted Results
Reconciliation of Adjusted Results Institutional Clients Group Personal Banking and Wealth Management ($ in MM) 1Q22 LTM'22 ($ in MM) 1Q22 LTM'22 Reported Net Income $2,640 $11,472 Reported Net Income $1,860 $7,174 ACL release (after-tax) (830) Allocated TCE ($B) $96 $96 Adjusted Net Income $1,030 (
Slide 28: Reconciliation of Adjusted Results
Reconciliation of Adjusted Results Legacy Franchises Exit Markets Contribution ($ in MM) 1Q22 LTM'22 ($ in MM) 1Q22 Reported Revenues $1,931 Signed Exit Markets & Korea Revenues $617 Less: Less: (1) Impact of Gain / (Loss) on sale related to Asia Divestitures (118) Impact of Gain / (Loss) on sale re
Slide 29: Tangible Common Equity Reconciliation
Tangible Common Equity Reconciliation ($ in MM, except per share amounts) Tangible Common Equity and Tangible Book Value Per Share 1Q22 4Q21 1Q'21 Common Stockholders' Equity $178,714 $182,977 $182,269 Less: Goodwill 19,865 21,299 21,905 Intangible Assets (other than Mortgage Servicing Rights) 4,002
Slide 30: Footnotes
Footnotes Slide 3 1) Return on Tangible Common Equity (RoTCE) is a non-GAAP financial measure. RoTCE represents annualized net income available to common shareholders as a percentage of average TCE. For a reconciliation to reported results, please refer to Slide 26. 2) 1Q22 is Preliminary. Citigroup
Slide 31: Footnotes continued
Footnotes continued Slide 7 1) Markets is defined as Fixed Income Markets and Equity Markets. 2) Gross Loan Yield: Gross interest revenue earned on loans divided by average loans. 3) Cost of Interest-Bearing Deposits: Interest expense associated with Citi’s deposits divided by average interest beari
Slide 32: Footnotes continued
Footnotes continued Slide 10 1) Allowance for Credit Losses (ACL) Build / (Release) and Other provisions includes a net ACL build of $948 million, including provision / (release) for unfunded lending commitments, and other provisions of approximately $(7) million relating to held-to-maturity (HTM) d
Slide 33: Footnotes continued
Footnotes continued Slide 12 1) Allowance for Credit Losses (ACL) Build / (Release) and Other provisions includes a net ACL release of $(1.1) billion, including provision / (release) for unfunded lending commitments, and other provisions of approximately $(3) million which relate to policyholder ben
Slide 34: Footnotes continued
Footnotes continued Slide 15 1) Tangible common equity (TCE) is a non-GAAP financial measure. For additional information on this measure, please refer to Slide 29. Slide 18 1) 1Q22 represents 1Q22 net income less 1Q22 preferred dividends of $279 million. LTM’22 represents LTM’22 net income less LTM’
Slide 35: Footnotes continued
Footnotes continued Slide 22 1) For additional information, please refer to Slide 29. 2) For the composition of Citigroup’s CET1 Capital, please see Appendix C of the 1Q22 earnings press release included as Exhibit 99.1 to Citigroup’s Current Report on Form 8-K filed with the SEC on April 14, 2022.
Slide 36: Footnotes continued
Footnotes continued Slide 25 1) Securitizations represent issuance by Citibank Credit Card Issuance Trust (CCCIT) backed by Citi-Branded Cards receivables. 2) Bank notes represent unsecured benchmark debt issued by Citibank, N.A. 3) Includes issuances priced through April 13, 2022. 4) Includes bank