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Fixed Income Investor ReviewJohn GerspachChief Financial OfficerEric AboafTreasurerOctober 20O t b 20, 2011
Highlights     Continued to execute strategy in challenging environment     Remain highly focused on risk management    ...
Summary Income Statement      ($MM, except EPS)                                                                3Q11       ...
Foundation for Sustainable Growth  Strong capital base – Tier 1 Common of 11.7%  Ample liquidity – $300B aggregate liqui...
Net Credit Losses and Reserves        ($B)         Net Credit Losses (1)                                                  ...
N.A. Consumer Mortgages & Cards($B)              N.A. Citi-Branded Cards – Citicorp (1)                                   ...
Balance Sheet Trends                                                                                Assets (1)            ...
Citi Holdings Asset SummaryEOP Assets ($B)                                                   3Q10    4Q10    1Q11    2Q11 ...
Loan Trends                                                                       Citigroup Loans (1)                     ...
Citicorp Drivers in Constant Dollars(1)                               North America                                       ...
Deposits($B)                                                                                             $850             ...
3.90%Net Interest Margin3.70%3.50% ($Tr)                                   Net Interest Margin3.30%  2.00     3.06%3.10%  ...
Liquidity & Funding Strategy                           Bank                            Non-Bank               Maintain amp...
Liquidity Resources                                     On Balance Sheet Aggregate Liquidity Resources (1)      (EOP $B)  ...
Non-Bank Liquidity         We have enough liquidity that we could operate without issuing long-term debt for a couple of ...
Long-Term Debt Outstanding By Product:                                 $387                    $381                    $37...
Maturities & Issuance of Long-Term Debt$B      70.0                                                                       ...
Long-Term Debt Issuance Details  $B 15.0               $12.7                                                     Structure...
Ratings                                         Moodys                                         M d                        ...
Key Capital Metrics                                                                                                       ...
Tier 1 Common Capital Drivers Quarter-over-Quarter: $B                               $115.4                     $2.8      ...
Risk Management: Process & ActionsStructural Enhancements post-crisis:                                       •   Built ben...
3Q’11 Country Risk Exposure Summary                                                                                       ...
Summary                         Sustained growthStrength in core        Asia achieved positive operating businesses    ...
APPENDIX                               Table of Contents  25. Citicorp 3Q’11 International               3Q 11            ...
Citicorp 3Q’11 International Consumer Loans($B)       Loans as % of Total International RCB                        Total I...
Citicorp 3Q’11 Consumer Loans – Asia($B)                     Asia Loans by Product                                        ...
Citicorp 3Q’11 Consumer Loans – LATAM($B)                  LATAM Loans by Product                                         ...
International Consumer Credit Trends($B)       Citicorp – Asia Consumer Banking           Citicorp – Latin America Consume...
Year-to-Date Expense DriversYear-over-YearYear over Year Change ($B)                                                      ...
Year-to-Date Investments($B)                    2011 YTD     YoY   Category       g y                                Examp...
Capital                        Tangible Common Equity (1 2)                        T   ibl C       E it (1,2)             ...
Capital Structure Components       Citi is committed to an optimal mix of common equity and Tier 1 Capital, and we will c...
3Q’11 Country Risk Exposure Summary($B)       As of September 30, 2011                                                    ...
Funding Profile                                       Total Li bili i                                       T l Liabilitie...
Deposits                                                                                                         Average R...
Citigrioup 3 q 2011
Citigrioup 3 q 2011
Citigrioup 3 q 2011
Citigrioup 3 q 2011
Citigrioup 3 q 2011
Citigrioup 3 q 2011
Citigrioup 3 q 2011
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Transcript of "Citigrioup 3 q 2011"

  1. 1. Fixed Income Investor ReviewJohn GerspachChief Financial OfficerEric AboafTreasurerOctober 20O t b 20, 2011
  2. 2. Highlights Continued to execute strategy in challenging environment Remain highly focused on risk management – Eurozone countries – Emerging markets – U.S. mortgage exposure Continued wind down of Citi Holdings – Retail Partner Cards to transfer to Citicorp Unquestionable financial strength Still expect to begin returning capital in 2012 Ongoing focus on expenses Note: Throughout this presentation, comments on Citi’s capital levels under Basel III are based on Citi’s current expectations and understanding of Basel III requirements, Citi s Citi s and are subject to final regulatory clarity and rulemaking, model calibration and other final implementation guidance. 1
  3. 3. Summary Income Statement ($MM, except EPS) 3Q11 2Q11 3Q10 %QoQ %YoY Net Revenues $20,831 $20,622 $20,738 1% 0% Operating Expenses 12,460 12 460 12,936 12 936 11,520 11 520 (4)% 8% Net Credit Losses 4,514 5,147 7,659 (12)% (41)% (1) Net LLR Build (Release) (1,422) (1,979) (1,967) 28% 28% PB&C 259 219 227 18% 14% Credit Losses, Claims and Benefits 3,351 3,387 5,919 (1)% (43)% Income Taxes 1,278 967 698 32% 83% Net Income from Cont. Ops. $3,742 $3,332 $2,601 12% 44% Net Income $3,771 $3,341 $2,168 13% 74% Diluted EPS $1.23 $1.09 $0.72 13% 71% (2) Diluted EPS (Ex-CVA) ( ) $0.84 $1.06 $0.70 (21)% 20% EOP Assets ($B) $1,936 $1,957 $1,983 (1)% (2)% EOP Loans ($B) 637 648 654 (2)% (3)% EOP Deposits ($B) 851 866 850 (2)% 0%Note: All per share numbers, throughout this presentation, reflect Citigroup’s 1-for-10 reverse stock split, which was effective May 6, 2011. Totals may not sum due to rounding.(1) Includes provision for unfunded lending commitments.(2) Credit valuation adjustment (CVA) on Citigroup’s fair value option debt and derivatives, net of hedges. Citigroup pre-tax CVA recorded in Securities and Banking and Special Asset Pool totaled $115MM, $164MM and $1,938MM in 3Q’10, 2Q’11, and 3Q’11, respectively. Assumes tax rates of 41.3%, 37.9%, and 37.9% for 3Q’10, 2Q’11, and 3Q’11, respectively. 2
  4. 4. Foundation for Sustainable Growth  Strong capital base – Tier 1 Common of 11.7%  Ample liquidity – $300B aggregate liquidity resources  De-risking of balance sheet – Holdings is now 15% of balance sheet  Continued improvement in credit trends – Net credit losses down 41% YoY  Well reserved – $32.1B of loan loss reserves, 5.1% of total loans  Continued investments in Citicorp  Strength in Citicorp’s core businesses – Citicorp total loans up 13% YoY 3
  5. 5. Net Credit Losses and Reserves ($B) Net Credit Losses (1) 2.5 Corporate 2.0 11.0 1.512.5 (0.5) 10.0 1.010.510 5 (0.1) (0 1) 0.1 01 8.4 8.0 7.7 0.5 0.8 8.5 6.9 0.0 0.4 0.3 6.3 (0.5) 6.5 5.1 4.5 (0.5) (1.4) (0.2) 4.5 (1.0) (1.5) 2.5 (2.0) 1Q11 2Q11 3Q11 0.5(1.5) 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 11.0 Consumer12.0 9.010.0 7.0 Loan Loss Reserves (2) 3.4 3.3 8.0 5.0 50 3.0 6.0 4.0 3.0 5.4 0.8 0.8 4.8 4.2 2.0 1.0 0.0(2.0) (0.1) (1.0) (2.0) (1.5) (1.2) (1.5) (2.0) (2.0) (1.4)(4.0) (2.3) (3.0)(6.0)(6 0) (3.3) 1Q11 Q 2Q11 Q 3Q11 Q(8.0) 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Allowance for Loan Losses ($B) ( ) 36.4 36.0 48.7 46.2 43.7 40.7 36.6 34.4 32.1 (1) Periods prior to 1Q10 are on a managed basis. For additional information, see Citigroups Fourth Quarter 2010 Quarterly Financial Data Supplement furnished as an exhibit to Form 8-K filed with the U.S. Securities and Exchange Commission on January 18, 2011. (2) Loan Loss Reserves include provision for unfunded lending commitments and credit reserve builds / releases. Note: The adoption of SFAS 166/167 increased the allowance by $13.4B as of January 1, 2010. Totals may not sum due to rounding. 4
  6. 6. N.A. Consumer Mortgages & Cards($B) N.A. Citi-Branded Cards – Citicorp (1) N.A. Retail Partner Cards – Holdings (1) 90+ DPD NCLs EOP 3Q’10 2Q’11 3Q’11 90+ DPD NCLs EOP 3Q’10 2Q’11 3Q’11 Loans $76.6 $73.7 $73.8 Loans $46.0 $41.9 $41.1 $2.37 $2 37 $2.30 $ $2.59 $ $2.68 $2 68 $2.19 $2.13 $2.37 $1.88 $2.00 $1.67 $1.74 $2.08 $2.08 $2.05 $1.60 $1.95 $1.81 $1.43 $1.60 $1.23 $1.09 $2.00 $1.96 $1.93 $1.30 $1.78 $1.06 $1.02 $1.35 $1.51 $1.35 $1.21 $1.05 $1 05 $1.11 $0.96 $0.78 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Residential 1st Mortgages – Citigroup ($B) Home Equity Loans – Citigroup ($B) EOP 3Q’10 2Q’11 3Q’11 EOP 3Q’10 2Q’11 3Q’11 90+ DPD NCLs 90+ DPD NCLs Loans $103.2 $96.8 $95.1 Loans $51.6 $46.4 $44.9 $10.40 $10.80 $1.68 $1.61 $9.59 $1.41 $1.38 $1.34 $1 32 $1.32 $8.03 $8 03 $7.02 $1.19 $1.05 $1.03 $5.70 $4.68 $4.08 $1.24 $3.99 $1.10 $0.95 $0.86 $0.80 $0.77 $0.72 $1.01 $0.99 $0.75 $0.70 $0.60 $0.51 $0.57 $0.48 $0.46 $0.63 $0.55 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11(1) Periods prior to 1Q10 are on a managed basis. For additional information, see Citigroups Fourth Quarter 2010 Quarterly Financial Data Supplement furnished as an exhibit to Form 8-K filed with the U.S. Securities and Exchange Commission on January 18, 2011.Note: Loans 90+ Days Past Due exclude U.S. mortgage loans that are guaranteed by U.S. government-sponsored agencies, because the potential loss predominantly resides with the U.S. agencies. 5
  7. 7. Balance Sheet Trends Assets (1) A t ($B) Cash and Deposits w/ Banks 5% Investments Fed funds sold & securities borrowed $1,649 $1,647 , $1,611 $1 611 Brokerage Receivables $1,562 $1,555 Trading Account Assets 179 186 Loans, net of reserves 186 170 186 Goodwill & Intangibles (including MSRs) Other assets (3) 273 253 285 288 267 280 286 234 241 257 30 27 26 20 30 310 306 314 301 296 (31)% $421 $359 $337 425 430 55 $308 375 389 403 23 51 $289 39 36 17 27 32 13 15 236 26 27 27 27 25 219 198 188 175 132 124 123 125 134 72 39 42 40 38 (2) (2) 3Q 10 3Q10 4Q 10 4Q10 1Q 11 1Q11 2Q 11 2Q11 3Q 11 3Q11 3Q 10 3Q10 4Q 10 4Q10 1Q 11 1Q11 2Q 11 2Q11 3Q 11 3Q11 Citicorp & Corp/Other Holdings(1) Quarterly segment balance sheet data is disclosed in Citigroup’s Forms 10-Q filed with the U.S. Securities and Exchange Commission.(2) Preliminary.(3) Includes assets related to discontinued operations held for sale. Note: Totals may not sum due to rounding. 6
  8. 8. Citi Holdings Asset SummaryEOP Assets ($B) 3Q10 4Q10 1Q11 2Q11 3Q11 % ∆ YoY Brokerage & Asset Mgmt. $28 $27 $27 $27 $26 (7) % ● MS Smith Barney JV SS 26 25 25 25 25 (5) ( ) ● Retail Alt. Investments 2 2 2 1 1 (32) Local Consumer Lending $298 $252 $237 $228 $218 (27) % ● North America 269 225 212 205 197 (27) – Mortgages 139 130 125 119 117 (16) – Cards (Retail Partners) 49 49 45 45 44 (11) – Personal 11 11 10 10 10 (11) – Student 40 8 8 8 4 (90) – Auto 8 7 6 5 5 (39) – Commercial Real Estate 6 4 2 2 2 (73) – Other 16 16 16 16 16 (1) ● EMEA 22 19 19 18 16 (29) ● Asia 7 7 6 5 4 (37) Special Asset Pool $95 $81 $73 $53 $45 (53) % ● Securities at HTM 28 27 14 13 11 (59) ● Loans, Leases & LCs 16 12 8 7 4 (72) ● Securities at AFS 12 9 8 6 6 (52) ● Trading MTM 24 20 29 13 15 (38) ● Other 15 13 14 14 9 (40) Total $421 $359 $337 $308 $289 (31) %Note: Totals may not sum due to rounding. 7
  9. 9. Loan Trends Citigroup Loans (1) Citi L ($B EOP Loans) 770 $654 $649 $637 $648 $637 670 Citi 208 194 Growth (%) 261 242 219 Holdings 570 QoQ (%) YoY (%) $444 Total Citicorp $440 470 $407 $418 1% 13% $394 47 53 58 370 41 44 Citicorp Corporate 133 139 146 149 270 130 4% 21% Citicorp 81 84 87 85 170 77 32 34 36 38 35 7 7 7 8 7 Citicorp Consumer 70 (2)% 6% 106 108 106 108 110 -30 3Q10 4Q10 1Q11 2Q11 3Q11 RCB N th A North America i RCB EMEA RCB L ti A Latin America i RCB A i Asia Securities & Banking(2) Global Transaction Services(3) Citi Holdings QoQ (%) YoY (%) Total Loans in Constant Dollars(4) Citigroup $650 $642 $628 $632 $637 1% (2)% Citi Holdings $261 $242 $220 $206 $194 (6)% (26)% Citicorp $389 $400 $408 $426 $444 4% 14%(1) Reported loans net of unearned income as disclosed in Citigroups Third Quarter 2011 Quarterly Financial Data Supplement furnished as an exhibit to Form 8-K filed with the U.S. Securities and Exchange Commission on October 17, 2011. Regional Consumer Banking numbers include both credit cards and retail banking. (2) Corporate loans. (3) Includes trade finance loans. (4) Loans excluding foreign exchange translation (FX) show non-USD loans expressed at September 30, 2011 foreign exchange rates.Note: Totals may not sum due to rounding. 8
  10. 10. Citicorp Drivers in Constant Dollars(1) North America Asia ($B) 3Q10 2Q11 3Q11 YoY % ($B) 3Q10 2Q11 3Q11 YoY % Average Deposits 144.9 144.4 145.4 0% Average Deposits 107.1 111.3 110.9 4% Retail Bank Average Loans 29.7 33.6 35.2 19% Retail Bank Average Loans 59.8 64.1 64.7 8% Cards Average Loans 76.0 72.4 72.8 (4%) Cards Average Loans 19.7 20.3 20.5 4% Cards Purchase S l C d P h Sales 39.0 39 0 39.9 39 9 39.6 39 6 2% Cards Purchase S l C d P h Sales 17.2 17 2 18.4 18 4 18.6 18 6 8% (2) (2) Institutional Avg Loans 66.0 68.3 69.9 6% Institutional Avg Loans 38.9 48.9 54.0 39% EMEA Latin America ($B) 3Q10 2Q11 3Q11 YoY ($B) 3Q10 2Q11 3Q11 YoY % Average Deposits 9.2 9.4 9.4 2% Average Deposits 40.4 45.0 44.2 9% Retail Bank Average Loans 4.2 4.1 4.2 (1%) Retail Bank Average Loans 18.8 21.2 21.9 16% Cards Average Loans 2.7 2.7 2.7 0% Cards Average Loans 12.2 13.0 13.1 8% Cards Purchase Sales 2.3 2.6 2.6 14% Cards Purchase Sales 8.3 9.2 9.8 18% (2) (2) Institutional Avg Loans 38.8 46.7 47.6 23% Institutional Avg Loans 23.1 27.9 29.9 30%(1) Constant dollars based on September 30, 2011 foreign exchange rates.(2) Loans in Institutional Clients Group include Private Bank. 9
  11. 11. Deposits($B) $850 $866 $866 $851 900 $833 $836 $828 $845 $814 77 73 71 Citi Holdings 89 82 79 800 87 86 82 5 5 5 Corp/Other 11 6 83 15 13 13 13 86 78 700 87 87 Retail 100 93 92 86 145 127 121 Time 600 138 deposits Instit’l 169 Clients Cli t 179 177 183 166 Group 500 233 232 222 228 400 214 Citicorp Retail 188 200 203 205 300 Operating accounts 200 Instit’l 325 345 346 288 313 Clients 263 265 252 261 Group 100 - (1) 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Total Deposits in Constant Dollars(2) p $833 $834 $830 $830 $844 $838 $848 $843 $851(1) Preliminary.(2) Deposits expressed at September 30, 2011 foreign exchange rates.Note: There is not a standard industry definition for operating accounts; numbers reflect Citigroup’s internal assessments.Totals may not sum due to rounding. 10
  12. 12. 3.90%Net Interest Margin3.70%3.50% ($Tr) Net Interest Margin3.30% 2.00 3.06%3.10% 2.95% 1 80 1.80 2.88% 2 88% 2.82% 2.83% 1.602.90% 1.402.70% 1.20 $1.71 $1.73 $1.72 $1.75 $1.722.50%2 1 00 50% 1.00 0.80 0.60 0.40 0.20 - 3Q10 4Q10 1Q11 2Q11 3Q11 Average Interest-Earnings Assets Average Loans (net of unearned income) as a % of Average Interest-Earning Assets 38% 37% 37% 37% 38% Average Long-Term Debt as a % of Average Interest-Earning Assets 21% 21% 21% 21% 19% 11
  13. 13. Liquidity & Funding Strategy Bank Non-Bank Maintain ample cash and readily Maintain ample cash and readily Liquidity marketable, highly liquid marketable, highly liquid Buffer securities on hand to meet securities on hand to meet short-term funding obligations short-term funding obligations Largely use cost-effective Use modest amount of short- deposits to fund both term funding for highly liquid liquid assets and loans assets Funding Components Supplement the funding of Continue to primarily fund non- bank entities with secured bank businesses with long-term g long-term debt and equity unsecured debt and equity 12
  14. 14. Liquidity Resources On Balance Sheet Aggregate Liquidity Resources (1) (EOP $B) $349 355 $331 $334 $316 $320 $322 $311 $300 305 255 241 253 237 $200 227 205 229 200 229 238 155 128 (2) 105 30 27 25 23 22 26 55 100 87 82 82 90 95 96 96 72 5 (3) 2008 2009 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 ‐45 (4) Non-Bank 23A Lending Capacity Significant Bank Entities(1) Aggregate Liquidity Resources reflect balances of cash at major central b k as well as unencumbered hi hl liquid securities f th parent holding company A t Li idit R fl t b l f h t j t l banks ll b d highly li id iti for the t h ldi (Citigroup Inc.), broker-dealer (CGMHI) and significant bank entities, including Citibank, N.A.(2) Qualifying collateral consisting of unencumbered assets and securities sold under repurchase agreements (repos). Some securities currently encumbered by repos are anticipated to be available as collateral in a stress scenario.(3) Preliminary.(4) “Non-Bank” includes the parent holding company (Citigroup Inc.) and the broker-dealer (CGMHI).Note: These totals do not include Citigroup’s borrowing capacity at the Federal Reserve discount window and from various Federal Home Loan Banks, which capacity is maintained by pledged collateral to all such banks. Totals may not sum due to rounding. 13
  15. 15. Non-Bank Liquidity  We have enough liquidity that we could operate without issuing long-term debt for a couple of years, 30.0 although we still plan to participate in the debt markets. 25.0 Non-Bank Aggregate 20.0 20 0 140 Liquidity Resources ($B) Unsecured Commercial Paper Outstanding 15.0 120 10.0 $8.7 100 5.0 30.00 80 0.0 23A Lending Capacity 25.00 3Q11 60 Expected Long-Term Debt Maturities(1) ( ) 20.00 Non-Bank 100 $14.6 $15.4 "Cash Box" 40 15.00 $11.8 $9.3 10.00 $8.2 $7.7 20 $6.7 $5.7 $5 7 5.00 0 0.00 3Q11 4Q11E 1Q12E 2Q12E 3Q12E 4Q12E 1Q13E 2Q13E 3Q13E(1) Expected non-bank maturities data is for total Citigroup Inc., excluding (a) securitizations that were consolidated on balance sheet due to SFAS 166/167; (b) FHLB; and (c) local country maturities. Expected aggregate annual long-term debt maturities for total Citigroup Inc., as disclosed in Citigroup Inc.’s Second Quarter 2011 Form 10-Q, filed with the Securities and Exchange Commission on August 5, 2011 (2Q’11 Form 10-Q), were $82.5B for 2011, $89.9B for 2012, and $44.4B for 2013. Local country liquidity not shown here is applied to local country debt. Modest annual FHLB maturities. 14
  16. 16. Long-Term Debt Outstanding By Product: $387 $381 $377 $B $352 $334 ~$325-330 167 167 165 161 157 13 12 13 60 58 14 57 13 325 51 44 70 70 68 56 52 18 18 18 16 11 20 18 18 16 16 6 29 9 28 10 28 10 28 11 29 10 3Q10 4Q10 1Q11 2Q11 3Q11 YE 2011 Senior (Fixed & Floating) Structured Notes TLGP Securitizations Projected FHLB TruPS Subordinated Other (1) Outstandings (2) Bank vs. $387 $381 $377 Non-Bank: $352 $334 ~$325-330 116 113 109 96 81 271 268 267 257 253 3Q10 4Q10 1Q11 2Q11 3Q11 YE 2011 Bank Non-Bank Projected Outstandings (2)(1) Includes: long-term (original maturity greater than 1 year) fixed/floating rate debt obligations that have been selected for fair value accounting, excluding structured notes; subordinated capital notes; capital lease obligations; and employee deferred awards.(2) Preliminary forecast balances; not actual.Note: Totals may not sum due to rounding. 15
  17. 17. Maturities & Issuance of Long-Term Debt$B 70.0 $61.7 60.0 50.0 $47.9 38.0 40.0 20.3 $29.3 $29 3 30.0 20.0 ~$15 ~$15-20 27.6 29.3 10.0 10 0 23.6 TBD - Maturities Issuance Maturities Issuance Maturities Issuance FY 2011 (1,2) FY 2012 (1,2) FY 2013 (1,2) (2,3) YTD11 Maturities Issuance Non-TLGP TLGP Projected Issuance $40.7 $11.7(1) 2011 through 2013 data includes expected maturities Expected aggregate annual maturities for total Citigroup Inc., as disclosed in Citigroup’s 2010 Annual Report maturities. Inc Citigroup s of Form 10-K filed with the Securities and Exchange Commission on February 25, 2011, were $71.5B for 2011, $94.2B for 2012, and $37.2B for 2013.(2) Preliminary. (3) Issuance data for YTD’11 includes $5.8B for Citigroup Inc. (parent holding company) and $5.9B of CFI gross structural issuance; gross structural issuance for CFI excludes debt that, in Citigroup’s internal assessment, may not have an expected life greater than one year.Note: Maturities and issuance data is for total Citigroup Inc., excluding (a) securitizations that were consolidated on balance sheet due to SFAS 166/167; (b) FHLB issuance of $6.0B in the YTD 2011 and expected maturities of $13.0B, $2.7B and $5.3B in 2011, 2012, and 2013, respectively; and (c) local country expected issuance of $5.4B in FY 2011, and expected maturities of $9.0B, $4.5B and $3.8B in 2011, 2012 and 2013, respectively.Totals may not sum due to rounding. 16
  18. 18. Long-Term Debt Issuance Details $B 15.0 $12.7 Structured Benchmark 13.0 11.0 9.0 10.3 7.0 $5.9 $5.1 $5.3 $4.7 5.0 $3.6 $3.8 $3.2 3.7 37 4.5 3.6 $ $2.6 3.0 30 3.6 36 2.2 1.9 2.3 1.0 2.4 1.7 1.7 2.6 0.9 1.4 1.4 1.1 1.6 (1) (1.0) 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Benchmark: Structured:  Mix of maturities (2, 3, 5, 10, 30 year)  Mix of maturities (across the curve including callable notes)  Currencies (USD, Sterling, Euro, Thai Baht, JPY)  Market-linked Market linked notes  Fixed and Floating  Fixed and Floating Continue to target a mix of both Benchmark and Structured issuance g(1) Benchmark issuance in 1Q’10 includes $2.3B of trust preferred securities.Note: Excludes TLGP issuance for both Citigroup Inc. and Citigroup Funding Inc. (CFI) during 2009. Issuance volumes based on trade date.Totals may not sum due to rounding. 17
  19. 19. Ratings Moodys M d S&P Fitch Fit hRatings Summary Rating Outlook Rating Outlook Rating OutlookCitigroup Inc. Senior Debt A3 Negative A Negative A+ Negative Watch Commercial Paper P-2 P2 A-1 A1 F1+Citibank, N.A. Long-Term Obligations A1 Negative A+ Negative A+ Negative Watch Short-Term Obligations P-1 A-1 F1+Over the past year and a half, in recognition of our progress, our unsupported ratings have improved at all three of themajor agencies – Moody’s, S&P, and Fitch – thereby narrowing the gap between our supported and unsupported ratings. – Moody’s: On September 21, 2011, concluded its review for possible downgrade and confirmed the A3 long-term rating of Citigroup and the A1 long-term and P-1 short-term ratings of Citibank, N.A. At the same time, Moodys g g p g g y downgraded the short-term rating of Citigroup to P-2 from P-1. The outlook on the long-term senior ratings remains negative. Moody’s noted, “The downgrade to P-2 is not a reflection of Citigroups liquidity profile, which strengthened significantly in the past two years and is robust.” – Standard & Poor’s: On April 26, 2011, S&P raised its counterparty credit rating on Citigroup Global Markets Inc. ( (CGMI) to A+/A-1 from A/A-1. Most recently on October 7, 2011, S&P noted they remain on track toward ) y y finalizing and implementing their new bank ratings criteria in the fourth quarter. S&P will first publish the new criteria, which will be followed by any rating actions resulting from the newly established criteria. – Fitch: On January 26, 2011, Fitch stated, “Should Citis intrinsic performance and fundamental credit profile remain stable or improve, any future lowering or elimination of support from its ratings would still result in a long- term IDR in the A category and short-term IDR of at least F1.” On October 13, 2011, Fitch placed the g y p unsupported ratings of 8 banks on Rating Watch Negative. Citigroups unsupported ratings were not included in the review. 18
  20. 20. Key Capital Metrics 17.0% 17.2% 16.9% 16.6% 16.1% 16.6% 15.3% 15.6% 15 6% 14.9% 13.3% 13.6% 13.5% 12.8% 12.5% 12.9% 11.7% 12.0% 11.3% 11.6% 11.7% 10.8% 11.3% 9.7% 10.3% 9.1% 9.6% 9.1% Tier 1 Capital Total Capital Tier 1 Common (1) 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Risk-Weighted Assets ($B) $990 $1,089 $1,064 $1,025 $1,003 $978 $992 $993 $982(1) Preliminary.Note: The adoption of SFAS 166/167 in 1Q10 reduced Tier 1 Common, Tier 1 Capital and Total Capital ratios by 138, 141 and 142 basis points, respectively, and increased risk-weighted assets by $24B. The exiting of the loss-sharing agreement with the U.S. government increased 4Q’09 risk-weighted assets by approximately $136B. 19
  21. 21. Tier 1 Common Capital Drivers Quarter-over-Quarter: $B $115.4 $2.8 $1.9 $115.3 $(3.6) $(1.1) ( ) (3) 2Q11 Earnings E i Equity U i E i Units Impact of FX I f Other Oh 3Q11 (1) (2) ex-CVA (ADIA) RWA $993 -- -- $(27) $16 $982 Tier 1 Common 11.6% 11.7% Year-over-Year: $10.8 $3.8 $115.3 $103.7 $(1.9) $(1.1) (3) 2Q11 Earnings Equity Units Impact of FX Other 3Q11 (1) (2) ex-CVA (ADIA) Tier 1 Common 10.3% 11.7%(1) Earnings excluding CVA on Citigroup Inc.s fair value option debt.(2) Abu Dhabi Investment Authority (ADIA) conversion.(3) Includes Currency Translation Adjustment through AOCI, as well as the impact of FX on reported Goodwill and Intangibles. 20
  22. 22. Risk Management: Process & ActionsStructural Enhancements post-crisis: • Built bench strength and enhanced the Risk culture • Triangulated on risk (business, product, geography) Organization & Culture • Established and embedded guiding principles • Revised performance assessment • Continuous VaR methodology improvements Risk Identification • Significantly enhanced Citi-wide multiple scenario stress testing • Ongoing economic capital methodology enhancements • Risk MIS re-vamped Measurement / Reporting • Robust quantitative and qualitative reportsDynamic d t d Management:D i day-to-day M t Business • Institutional (corporate) underwriting criteria • Consumer (mortgage, cards) underwriting criteria ( g g ) g • Concentration limits by counterparty, geography, and product Product • Limits at multiple levels, e.g. business level, desk-level , factor sensitivity level • Regional risk structure; regional and country limits Geography • Daily, weekly, monthly monitoring 21
  23. 23. 3Q’11 Country Risk Exposure Summary France (1) As of September 30, 2011 GIIPS & Belgium (2) Gross Funded Exposure G F d dE $20.6 $20 6 $14.4 $14 4 (3) Less: Margin and Collateral (4.1) (6.8) (4) Less: Purchased Credit Protection (9.4) (5.6) (13.5) (13 5) (12.4) (12 4) Net Current Funded Exposure $7.1 $2.0 Additional Collateral Received Not Netted ($4.4) ($4.1) Net Current Funded Exposure Detail: Trading / AFS ($0.6) ($0.1) Credit Exposure Sovereigns 1.5 (0.0) Financial Institutions 2.1 2.3 Corporations 4.1 (0.2) Net Current Funded Exposure $7.1 $2.0 Note: Information based on Citi’s internal risk management measures. (1) Greece, Ireland, Italy, Portugal, and Spain. (2) Does not include unfunded commitments of $9.2B to GIIPS (of which $8.4B is to corporations) and $18.0B to Belgium and France (of which $12.4B is to corporations). Details in Appendix on slide 33. (3) Margin posted under legally enforceable margin agreements and collateral pledged under bankruptcy-remote structures. (4) Credit protection purchased from high quality financial institutions predominately outside of GIIPS, France, and Belgium. 22
  24. 24. Summary Sustained growthStrength in core Asia achieved positive operating businesses leverage in 3Q’11; Latin America 3Q 11; currently projected to do so in 4Q’11Asset reductions Robust structural liquidity with appetite to lendStable deposits & loan growth Expect continued loan growthModest re-issuance Lower proportion of wholesale funding p p g needs over timeDo not expect to Expect approximately $325-330B long- replace maturing TLGP term debt outstanding by year-end 2011 Continue to expect to begin returning capital to shareholders in 2012 andStrong capital base operate in a Tier 1 Common ratio range p g of 8-9% under Basel III by end of 2012 23
  25. 25. APPENDIX Table of Contents 25. Citicorp 3Q’11 International 3Q 11 33. 3Q’11 Country Risk Exposure 3Q 11 Consumer Loans Summary 26. Citicorp 3Q’11 Consumer 34. Funding Profile Loans – Asia 35. 35 Deposits 27. Citicorp 3Q’11 Consumer Loans – LATAM 36. Structural Liquidity 28. International Consumer Credit 37. Assets Trends 38. Liabilities & Equity 29. Year-to-Date Expense Drivers 39. Additional Mortgage Details 30. 30 Year-to-Date Investments 40. Consumer 40 Cons mer Mortgage Reps & 31. Capital Levels Warranties 32. Capital Structure Components 41. Non-GAAP Financial Measures 24
  26. 26. Citicorp 3Q’11 International Consumer Loans($B) Loans as % of Total International RCB Total International Loans by Product Commercial Markets 23%Total EOP 3Q’10 2Q’11 3Q’11 Total EOP Mortgage Cards Commercial PIL(1)+Other Loans $116.7 $132.7 $126.4 Loans $38.1 $35.6 $29.2 $23.5Note: Totals may not sum due to rounding.(1) Personal installment loan. 25
  27. 27. Citicorp 3Q’11 Consumer Loans – Asia($B) Asia Loans by Product  Well-diversified within region – Over 80% of loans in emerging markets  Strict underwriting criteria  40% in mortgages as of 3Q’11 – Largest EM markets: Korea, Singapore & Hong Kong – Majority of EM loans to borrowers with a Citi banking j y g relationship – Regulatory limits cap LTVs in major markets Commercial – Korea capped at 60% Markets – Singapore capped at 80% 20% – Hong Kong capped at 50-70% – Citi’s average updated LTV in each of these 3 portfolios is roughly 50% or lower – Mortgages are full recourse – Current and historical NCL rates close to 0%  24% in cards as of 3Q’11 – Largest EM markets: Taiwan, Korea, and Malaysia – Seasoned portfolios with historical average NCL rates of 3-4% over the last 10 years 3 4%Total EOP 3Q’10 2Q’11 3Q’11 – New card originations target an estimated operating Loans $77.2 $87.1 $84.5 margin of at least 2x steady state NCL rateNote: Totals may not sum due to rounding. 26
  28. 28. Citicorp 3Q’11 Consumer Loans – LATAM($B) LATAM Loans by Product  2 key markets – Mexico (~62% of loans) and Brazil (~20% of loans)  37% in cards as of 3Q’11 – Mexico cards portfolio ($5.2B) re-positioned over past 3 years with focus on tighter credit criteria – New vintage delinquencies at ~50% of 50% 2007 / 2008 vintages – Focused on new originations through existing retail base Commercial Markets – Brazil cards ($4.6B) has migrated to more ( ) g 31% transactional users with higher credit quality – Regulatory changes to minimum payment terms are impacting industry in near-term  31% in commercial markets as of 3Q’11 3Q 11 – Roughly 80% in Mexico, which has had historical average NCL rate of <1.0% over past two years  Nearly all mortgages in Mexico y g gTotal EOP 3Q’10 2Q’11 3Q’11 Loans $32.2 $37.9 $34.9Note: Totals may not sum due to rounding. 27
  29. 29. International Consumer Credit Trends($B) Citicorp – Asia Consumer Banking Citicorp – Latin America Consumer Banking EOP 3Q’10 2Q’11 3Q’11 EOP 3Q’10 2Q’11 3Q’11 Loans $77.2 $87.1 $84.5 Loans $32.2 $37.9 $34.9 Citicorp – EMEA Consumer Banking Citi C B ki Holdings – I t H ldi International LCL ti l EOP 3Q’10 2Q’11 3Q’11 EOP 3Q’10 2Q’11 3Q’11 Loans $7.3 $7.7 $7.0 Loans $24.7 $16.6 $14.8 28
  30. 30. Year-to-Date Expense DriversYear-over-YearYear over Year Change ($B) 8.1% 5.3% 2.8% 2.8 1.1 37.7 1.0 35.9 (0.2) 34.9 (1.4) (0.4) ~ ~ Macro / Episodic Operating: +$1.0B Driven Expenses: +$1.8B (1) (2) Year to date operating expenses up 2 8% vs last year (3)) Year-to-date, 2.8% vs. (Note: Totals may not sum due to rounding.(1) Includes volumes, divestitures ,and all other operational expenses.(2) Includes a $0.4B benefit from the absence of the 2Q’10 UK bonus tax.(3) Excludes macro / episodic driven expenses. 29
  31. 31. Year-to-Date Investments($B) 2011 YTD YoY Category g y Examples of Key Initiatives y Spend Variance  Cards new acquisition campaigns Revenue  Branch network expansion ~$1.9 ~$1.5 Generating  Retail sales force expansion  Securities & Banking hires  Investments related to risk management, Regulatory / finance, and compliance ~$0.6 ~$0.6 Compliance  Regulatory mandates Enhance Capabilities,  Technology and infrastructure Productivity & ~$0.5 ~$0.5  Drive productivity gains Organizational Effectiveness  Consumer marketing campaigns Franchise-Wide ~$0.2 ~$0.2  New sponsorships Total T t l Citi ~$3.2B $3 2B ~$2.8B $2 8B 30
  32. 32. Capital Tangible Common Equity (1 2) T ibl C E it (1,2) Ti 1 Common (1) Tier C ($B) $150.0 142% 83% $144.7 $130.0 $142.2 $112.5 $115.4 $115.3150.0 $136.9 $129.4 $110.0 $104.5 $105.1130.0 $118.2110.0 $90.0$90.0 $70.0 $62.9$70.0 $59.8 $50.0$50.0 $31.1 $30.0 $22.9$30.0$30 0$10.0 $10.0$10.0 (3) -$10.0 (3) 2007 2008 2009 2010 1Q11 2Q11 3Q11 2007 2008 2009 2010 1Q11 2Q11 3Q11 Tier 1 Capital Total Capital 48% $200.0 24%$150.0 $134.5 $180.0 $166.0 $168.4 $170.5 $166.3 $131.5 $132.4 $156.4 $162.2 $127.0 $126.2$130.0 $118.8 $160.0 $134.1$$110.0 $140.0 $89.2 $120.0$90.0 $100.0$70.0 $80.0$50.0 $60.0$30.0 $40.0 $20.0 $20 0$10.0 $0.0-$10.0 (3) (3) 2007 2008 2009 2010 1Q11 2Q11 3Q11 2007 2008 2009 2010 1Q11 2Q11 3Q11 (1) Tier 1 Common and Tangible Common Equity totals for 2007 are estimates. (2) (3) Tangible Common Equity is a non-GAAP financial measure. See slide 41 for additional information on this metric. Preliminary. 31
  33. 33. Capital Structure Components  Citi is committed to an optimal mix of common equity and Tier 1 Capital, and we will continue to refine our capital structure to reflect economic conditions, business dynamics and 200.0 regulatory requirements($B)180.0 Regulatory Capital Qualifying Amounts (1) 160.0 Subordinated Tier 2 Capital Trust Preferreds (5): 140.0 Debt $20.7 $33.9B(2) Trust Preferreds # Amount Regulatory 120.0 $16.0 Call Feature Issues $B (6) Call Preferred $0.3 Stock Currently Callable 11 $4.7 11 100.0 Optionally Callable: 80.0 Tier 1 Prior to Jan 2013 4 $2.8 4 Common Tier 1 Capital After Jan 2013 4 $6.9 4 60.0 Stockholders’ $115.3 Common $132.4B(4) Permanently Equity $115.3B(3) Grandfathered (7) 1 $1.3 N/A 40.0 20.0 0.0 3Q 11 3Q11(1) Qualifying amounts refers to how much of each indicated security class is included in the calculation of each capital measure under current regulatory guidelines. (2) Tier 2 Capital also includes a portion of the Allowance for Credit Losses of $12.6B and Net Unrealized Pretax Gains on Available-for-Sale Equity Securities of $0.7B, not shown on this chart. (3) Qualifying amount of common stockholders’ equity reflects adjustments and is also principally reduced by disallowed deferred tax assets, goodwill, and other disallowed intangible assets. (4) Tier 1 Capital also includes Qualifying Noncontrolling Interests of $0.8B not shown on this chart. (5) Excludes Citigroup Capital III, which is not redeemable and has a qualifying capital value of approximately $0.2B. (6) Amount of qualifying capital associated with each call feature. (7) Citigroup Capital XIII which is grandfathered under Dodd-Frank but not Basel III and is callable in 2015.Note: Totals may not sum due to rounding. 32
  34. 34. 3Q’11 Country Risk Exposure Summary($B) As of September 30, 2011 France (1) Unfunded Commitments GIIPS & Belgium Sovereigns S i $0.4 $0 4 $1.4 $1 4 Financial Institutions 0.4 4.2 Corporations 8.4 12.4 Unfunded Commitments $9.2 $18.0 Note: Information based on Citi’s internal risk management measures. (1) Greece, Ireland, Italy, Portugal, and Spain. 33
  35. 35. Funding Profile Total Li bili i T l Liabilities & Equity: $1,936 billion as of 3Q’11 E i $1 936 billi f ($B) $1,050 231,000 35 1,000 1,000 50 45 81 800 800 800 $707 27 31 37 600 600 55 600 104 400 814 400 400 201 200 200 200 $179 253 - - - (1,3) (2,3) (3) Bank Non-Bank Total Equity Deposits L-T Debt Brokerage Payables (4) Total Equity S-T Borrowings Secured Financing Other Liabilities Trading Account Liabilities (1) “Bank” units include Citibank, N.A. and Citicorp Trust Bank. (2) “Non-Bank” includes the parent holding company (Citigroup Inc.) and the balances of Citigroup Funding Inc. (CFI), CGMHI (the broker-dealer), Banamex and Citibank Switzerland, Citicorp Treasury and all other remaining non-bank balances. (3) Preliminary. (4) The “Bank” graph includes $1.3B of Brokerage Payables which may not be apparent due to the scale of the graph, for Citigroup Inc. total Brokerage Payables balance of $56.1B at 3Q’11. Note: Totals may not sum due to rounding. 34
  36. 36. Deposits Average Rate on Total Deposits (1) Average Rate on Total Deposits 1.50%  (excluding deposit insurance and FDIC assessment) (2) 1.12% 1.01% 1 01% 1.02% 1 02% 1.00% 1.01% 1 01% 0.99% 1.03% 1 03% 1.03% 1 03% 0.96% 1.00%  0.98% 0.91% 0.91% 0.88% 0.90% 0.86% 0.85% 0.86% 0.85%(EOP Balances, $B) B l 0.50%  $833 $836 $850 $845 $866 $866 $851 $828 $814 Non-Interest- 118 116 112 106 117 133 144 149 162 0.00%  Bearing Interest- 715 5 720 6 716 708 734 712 722 718 690 Bearing B i 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11(1) Average rate is calculated as annualized interest (including deposit insurance and FDIC assessment) divided by average deposits. As previously disclosed, the FDIC assessment increased significantly in 2Q’11.(2) Average rate is calculated as annualized interest (excluding deposit insurance and FDIC assessment) divided by average deposits.Note: Totals may not sum due to rounding. 35
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