Market Overview

Citigroup Reports Third Quarter 2018 Financial Results

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Citigroup Inc. (NYSE:C)

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EARNINGS PER SHARE OF $1.73

NET INCOME OF $4.6 BILLION

REVENUES OF $18.4 BILLION

RETURNED $6.4 BILLION OF CAPITAL TO COMMON SHAREHOLDERS

REPURCHASED 75 MILLION COMMON SHARES

BOOK VALUE PER SHARE OF $72.88
TANGIBLE BOOK VALUE PER
SHARE OF $61.91
5

Citigroup Inc. today reported net income for the third quarter 2018 of
$4.6 billion, or $1.73 per diluted share, on revenues of $18.4 billion.
This compared to net income of $4.1 billion, or $1.42 per diluted share,
on revenues of $18.4 billion for the third quarter 2017.

Revenues were largely unchanged from the prior-year period, primarily
reflecting the net impact of a gain on sale (approximately $580 million)
of a fixed income analytics business in the prior-year period and a gain
on sale (approximately $250 million) of an asset management business in
Mexico in Global Consumer Banking (GCB) in the current
period, as well as the impact of foreign exchange translation6.
Excluding these items, revenues grew 4% driven by growth in the Institutional
Clients Group (ICG)
. Net income of $4.6 billion increased 12%,
primarily reflecting a lower effective tax rate as well as lower
expenses and cost of credit, as the revenues remained largely unchanged.
Earnings per share of $1.73 increased 22% from $1.42 per diluted share
in the prior-year period, driven by the growth in net income and an 8%
reduction in average diluted shares outstanding.

Citi CEO Michael Corbat said, "Our results this quarter showed solid
year-over-year revenue growth across many of our businesses, including
Fixed Income, Treasury and Trade Solutions, Securities Services, the
Private Bank and our consumer franchise in Mexico. We also grew loans
and deposits while continuing to prudently manage risk as demonstrated
by the stability of our credit portfolio. We returned $6.4 billion of
capital to common shareholders through buybacks and dividends during the
quarter. And over the past twelve months, we've reduced our common
shares outstanding by over 200 million or 8%. Through a combination of
earnings growth and capital return, our earnings per share were 22%
higher than one year ago.

"Through the first nine months of this year, we have grown our
underlying Consumer and Institutional revenues by 4%, operated with an
efficiency ratio of 57.3% and delivered a Return on Tangible Common
Equity of 11.2%. We are firmly on track to deliver on our full year 2018
financial targets. At the same time, we continue to make targeted
investments which will fund future growth and enhance our ability to
serve clients," Mr. Corbat concluded.

Percentage comparisons throughout this press release are calculated for
the third quarter 2018 versus the third quarter 2017, unless otherwise
specified.

                     

Citigroup
($ in millions, except as otherwise noted)

  3Q'18   2Q'18   3Q'17   QoQ%   YoY%
Global Consumer Banking   8,654   8,250   8,470   5%   2%
Institutional Clients Group 9,241 9,691 9,430 (5)% (2)%
Corporate / Other   494     528     519   (6)% (5)%
Total Revenues $ 18,389 $ 18,469 $ 18,419 - -
 
Expenses $ 10,311 $ 10,712 $ 10,417 (4)% (1)%
 
Net Credit Losses 1,756 1,704 1,777 3% (1)%
Credit Reserve Build / (Release)(a) 192 87 194 NM (1)%
Provision for Benefits and Claims   26     21     28   24% (7)%
Total Cost of Credit $ 1,974 $ 1,812 $ 1,999 9% (1)%
 
Income from Continuing Operations Before Taxes $ 6,104 $ 5,945 $ 6,003 3% 2%
Provision for Income Taxes   1,471     1,444     1,866   2% (21)%
Income from Continuing Operations $ 4,633 $ 4,501 $ 4,137 3% 12%
Net Income (Loss) from Discontinued Operations (8 ) 15 (5 ) NM (60)%
Non-Controlling Interest   3     26     (1 ) (88)% NM
Citigroup Net Income $ 4,622 $ 4,490 $ 4,133 3% 12%
                     
 
Revenues
North America 8,458 8,515 8,906 (1)% (5)%
EMEA 2,927 3,043 2,703 (4)% 8%
Latin America 2,725 2,543 2,487 7% 10%
Asia 3,785 3,840 3,804 (1)% -
Corporate / Other 494 528 519 (6)% (5)%
                     
 
EOP Assets (NYSE:B) 1,925 1,912 1,889 1% 2%
EOP Loans (NYSE:B) 675 671 653 1% 3%
EOP Deposits (NYSE:B) 1,005 997 964 1% 4%
                     
 
Common Equity Tier 1 Capital Ratio(3) 11.8 % 12.1 % 13.0 %
Supplementary Leverage Ratio(3) 6.5 % 6.6 % 7.1 %
Return on Average Common Equity 9.6 % 9.2 % 7.3 %
Book Value per Share $ 72.88 $ 71.95 $ 78.81 1% (8)%
Tangible Book Value per Share $ 61.91 $ 61.29 $ 68.55 1% (10)%
                                 
Note: Please refer to the Appendices and Footnotes at the end of
this press release for additional information.
(a) Includes provision for unfunded lending commitments.
 

Citigroup

Citigroup revenues of $18.4 billion in the third quarter 2018
were largely unchanged. Excluding the previously mentioned gains on sale
as well as the impact of foreign exchange translation, revenues
increased 4%, driven by growth in ICG.

Citigroup's operating expenses of $10.3 billion in the third
quarter 2018 decreased 1%, as higher volume-related expenses and
investments were more than offset by efficiency savings and the
wind-down of legacy assets.

Citigroup's cost of credit in the third quarter 2018 was
$2.0 billion, a 1% decrease, primarily driven by lower reserve builds in Citi
Retail Services and Citi-Branded Cards in North America
GCB
, partially offset by a net reserve build in ICG.

Citigroup's net income increased to $4.6 billion in the third
quarter 2018, primarily driven by the lower effective tax rate as well
as the lower expenses and cost of credit, as the revenues remained
largely unchanged. Citigroup's effective tax rate was 24% in the current
quarter compared to 31% in the third quarter 2017.

Citigroup's allowance for loan losses was $12.3 billion at
quarter end, or 1.84% of total loans, compared to $12.4 billion, or
1.91% of total loans, at the end of the prior-year period. Total
non-accrual assets declined 19% from the prior-year period to $4.0
billion. Consumer non-accrual loans declined 15% to $2.4 billion and
corporate non-accrual loans decreased 25% to $1.5 billion.

Citigroup's end-of-period loans were $675 billion as of quarter
end, up 3% from the prior-year period. Excluding the impact of foreign
exchange translation, Citigroup's end-of-period loans grew 4%, as 6%
aggregate growth in ICG and GCB was partially offset by
the continued wind-down of legacy assets in Corporate / Other.

Citigroup's end-of-period deposits were $1.0 trillion as of
quarter end, an increase of 4% from the prior-year period. Excluding the
impact of foreign exchange translation, Citigroup's end-of-period
deposits grew 5%, driven by 8% growth in ICG.

Citigroup's book value per share of $72.88 and tangible book
value per share of $61.91, both as of quarter end, increased 1%
sequentially, as the benefit of a lower share count and higher net
income more than offset common share repurchases and dividends. At
quarter end, Citigroup's CET1 Capital ratio was 11.8%, down from 12.1%
in the prior quarter as net income was more than offset by common share
repurchases and dividends, and risk-weighted assets increased due to
client activity. Citigroup's SLR for the third quarter 2018 was 6.5%,
down from 6.6% in the prior quarter. During the third quarter 2018,
Citigroup repurchased 75 million common shares and returned a total of
$6.4 billion to common shareholders in the form of common share
repurchases and dividends.

                     

Global Consumer Banking
($ in millions, except as
otherwise noted)

  3Q'18   2Q'18   3Q'17   QoQ%   YoY%
North America   5,129   5,004   5,197   2%   (1)%
Latin America(a) 1,670 1,381 1,388 21% 20%
Asia(b)   1,855   1,865   1,885 (1)% (2)%
Total Revenues $ 8,654 $ 8,250 $ 8,470 5% 2%
 
Expenses $ 4,661 $ 4,655 $ 4,452 - 5%
 
Net Credit Losses 1,714 1,726 1,704 (1)% 1%
Credit Reserve Build / (Release)(c) 192 157 481 22% (60)%
Provision for Benefits and Claims   27   22   28 23% (4)%
Total Cost of Credit $ 1,933 $ 1,905 $ 2,213 1% (13)%
 
Net Income $ 1,566 $ 1,278 $ 1,168 23% 34%
                     
 
Retail Banking(a) 3,717 3,489 3,521 7% 6%
Cards   4,937   4,761   4,949 4% -
Total Revenues $ 8,654 $ 8,250 $ 8,470 5% 2%
                     
 
Key Indicators (NYSE:B)
Retail Banking Average Loans 146 146 144 - 1%
Retail Banking Average Deposits 307 306 308 - -
Investment AUMs 169 163 158 4% 7%
Cards Average Loans 161 158 155 2% 4%
Cards Purchase Sales 135 134 125 1% 8%
                     
Note: Please refer to the Appendices and Footnotes at the end of
this press release for additional information.
(a) Includes gain of approximately $250 million related to the sale
of an asset management business in 3Q'18.
(b) Asia GCB includes the results of operations of GCB
activities in certain EMEA countries for all periods
presented.
(c) Includes provision for unfunded lending commitments.
 

Global Consumer Banking

GCB revenues of $8.7 billion increased 2% on a
reported basis and 3% in constant dollars, driven primarily by strength
in Latin America GCB, as well as the previously mentioned gain on
sale.

North America GCB revenues of $5.1 billion
decreased 1%, as higher revenues in Citi Retail Services were
more than offset by lower revenues in Citi-Branded Cards and Retail
Banking
. Retail Banking revenues of $1.3 billion decreased
3%. Excluding mortgage, Retail Banking revenues increased 1%,
driven by continued growth in deposit margins and investments, largely
offset by lower episodic transaction activity in commercial banking. Citi-Branded
Cards
revenues of $2.1 billion decreased 3%, as growth in
interest-earning balances was more than offset by the impact of the
Hilton portfolio sale as well as previously disclosed partnership terms. Citi
Retail Services revenues of $1.7 billion increased 2%, primarily
reflecting organic loan growth and the benefit of the L.L.Bean portfolio
acquisition, partially offset by higher partner payments.

Latin America GCB revenues increased 20% to $1.7
billion, including the gain on sale. In constant dollars, revenues
increased 8% excluding the gain on sale driven by continued volume
growth across commercial, mortgage and card loans, as well as deposits.

Asia GCB revenues decreased 2% to $1.9 billion. In
constant dollars, revenues increased 1%, as continued growth in deposit,
lending and insurance revenues was largely offset by lower investment
revenues due to weaker market sentiment.

GCB operating expenses increased 5% to
$4.7 billion. In constant dollars, expenses increased 6% driven by the
timing of investment spending versus the prior year.

GCB cost of credit decreased 13% to $1.9 billion.
In constant dollars, cost of credit decreased 12%, driven by a 60%
decrease in loan loss reserve builds, primarily in Citi Retail
Services
and Citi-Branded Cards in North America GCB,
partially offset by volume growth and seasoning in International GCB.

GCB net income of $1.6 billion increased 34% on a
reported basis and 36% in constant dollars, driven primarily by the
lower cost of credit, the lower effective tax rate and the gain on sale,
which more than offset the higher expenses.

                     

Institutional Clients Group
($ in millions)

  3Q'18   2Q'18   3Q'17   QoQ%   YoY%
Treasury & Trade Solutions   2,283   2,336   2,185   (2)%   4%
Investment Banking 1,181 1,422 1,280 (17)% (8)%
Private Bank 849 848 790 - 7%
Corporate Lending(a)   563     589     506   (4)% 11%
Total Banking 4,876 5,195 4,761 (6)% 2%
Fixed Income Markets 3,199 3,076 2,936 4% 9%
Equity Markets 792 864 785 (8)% 1%
Securities Services 672 665 608 1% 11%
Other(b)   (192 )   (132 )   388   (45)% NM
Total Markets & Securities Services   4,471     4,473     4,717   - (5)%
Product Revenues(a) $ 9,347 $ 9,668 $ 9,478 (3)% (1)%
Gain / (Loss) on Loan Hedges   (106 )   23     (48 ) NM NM
Total Revenues $ 9,241 $ 9,691 $ 9,430 (5)% (2)%
 
Expenses $ 5,191 $ 5,458 $ 5,138 (5)% 1%
 
Net Credit Losses 23 (1 ) 44 NM (48)%
Credit Reserve Build / (Release)(c)   48     26     (208 ) 85% NM
Total Cost of Credit $ 71 $ 25 $ (164 ) NM NM
 
Net Income $ 3,123 $ 3,225 $ 3,048 (3)% 2%
                     
 
Revenues
North America(b) 3,329 3,511 3,709 (5)% (10)%
EMEA 2,927 3,043 2,703 (4)% 8%
Latin America 1,055 1,162 1,099 (9)% (4)%
Asia 1,930 1,975 1,919 (2)% 1%
                     
Note: Please refer to the Appendices and Footnotes at the end of
this press release for additional information.
(a) Excludes gain / (loss) on credit derivatives as well as the
mark-to-market on loans at fair value. For additional information,
please refer to Footnote 7.
(b) Includes gain of approximately $580 million related to the sale
of a fixed income analytics business in 3Q'17.
(c) Includes provision for unfunded lending commitments.
 

Institutional Clients Group

ICG revenues of $9.2 billion decreased 2%.
Excluding the previously mentioned gain on sale in the prior-year
period, revenues grew 4%, driven by growth in Markets and Securities
Services
as well as Banking.

Banking revenues of $4.8 billion
increased 1% (including gain / (loss) on loan hedges)7, as
continued growth across businesses more than offset a decline in Investment
Banking
. Treasury and Trade Solutions revenues of $2.3
billion increased 4% on a reported basis and 8% in constant dollars,
reflecting continued growth in transaction volumes, loans and deposits. Investment
Banking
revenues of $1.2 billion were down 8% versus the prior-year
period, as growth in advisory was more than offset by a decline in
underwriting fees, reflecting lower market activity. Advisory revenues
increased 9% to $262 million, equity underwriting revenues decreased 17%
to $259 million and debt underwriting revenues decreased 9% to $660
million. Private Bank revenues increased 7% to $849 million,
driven by growth in loans and investments, as well as improved deposit
spreads. Corporate Lending revenues of $563 million
increased 11% (excluding gain / (loss) on loan hedges), reflecting loan
growth as well as lower hedging costs.

Markets and Securities Services revenues of $4.5
billion decreased 5%. Excluding the gain on sale in the prior-year
period, revenues increased 8% driven by strong revenue growth in Fixed
Income Markets
and Securities Services. Fixed Income
Markets
revenues of $3.2 billion in the third quarter 2018
increased 9%, with contribution from both rates and currencies as well
as spread products. Equity Markets revenues of $792 million
increased 1%, as strength in prime finance and derivatives was largely
offset by lower revenues in cash equities, reflecting a more challenging
trading environment and lower commissions. Securities Services
revenues of $672 million increased 11%, driven by continued growth in
client volumes and higher net interest revenue.

ICG net income of $3.1 billion increased 2%,
driven primarily by the lower effective tax rate which more than offset
the lower revenues as well as the higher cost of credit and expenses. ICG
operating expenses increased 1% to $5.2 billion, driven by an increase
in compensation costs, volume-related expenses and investments,
partially offset by efficiency savings. ICG cost of credit
increased due to a net reserve build of $48 million in the current
quarter, compared to a net reserve release of $208 million in the
prior-year period.

                     

Corporate / Other
($ in millions)

  3Q'18   2Q'18   3Q'17   QoQ%   YoY%
Revenues   $ 494   $ 528   $ 519   (6)%   (5)%
 
Expenses $ 459 $ 599 $ 827 (23)% (44)%
 
Net Credit Losses 19 (21 ) 29 NM (34)%
Credit Reserve Build / (Release)(a) (48 ) (96 ) (79 ) 50% 39%
Provision for Benefits and Claims   (1 )   (1 )   -   - NM
Total Cost of Credit $ (30 ) $ (118 ) $ (50 ) 75% 40%
 
Income (Loss) from Continuing Operations before Taxes $ 65 $ 47 $ (258 ) 38% NM
 
Net Income (Loss) $ (67 ) $ (13 ) $ (83 ) NM 19%
                     
(a) Includes provision for unfunded lending commitments.
 

Corporate / Other

Corporate / Other revenues of $494 million
decreased 5% from the prior-year period, driven by the wind-down of
legacy assets.

Corporate / Other expenses of $459 million
decreased 44% from the prior-year period, driven by the wind-down of
legacy assets and lower infrastructure costs.

Corporate / Other income from continuing operations
before taxes
of $65 million increased from a loss of $258 million in
the prior-year period, as the lower expenses more than offset the lower
revenues.

Citigroup will host a conference call today at 11:30 AM (ET). A live
webcast of the presentation, as well as financial results and
presentation materials, will be available at https://www.citigroup.com/citi/investor.
Dial-in numbers for the conference call are as follows: (866) 516-9582
in the U.S. and Canada; (973) 409-9210 outside of the U.S. and Canada.
The conference code for both numbers is 83786410.

Additional financial, statistical and business-related information, as
well as business and segment trends, is included in a Quarterly
Financial Data Supplement. Both this earnings release and Citigroup's
Third Quarter 2018 Quarterly Financial Data Supplement are available on
Citigroup's website at www.citigroup.com.

Citigroup, the leading global bank, has approximately 200 million
customer accounts and does business in more than 160 countries and
jurisdictions. Citigroup provides consumers, corporations, governments
and institutions with a broad range of financial products and services,
including consumer banking and credit, corporate and investment banking,
securities brokerage, transaction services, and wealth management.

Additional information may be found at www.citigroup.com
| Twitter: @Citi | YouTube: www.youtube.com/citi
| Blog: http://blog.citigroup.com
| Facebook: www.facebook.com/citi
| LinkedIn: www.linkedin.com/company/citi

Certain statements in this release 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. 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, including, among others, the efficacy of
Citi's business strategies and execution of those strategies, such as
those relating to its key investment, efficiency and capital
optimization initiatives, governmental and regulatory actions or
approvals, geopolitical and macroeconomic uncertainties, challenges and
conditions, such as the level of interest rates, and the precautionary
statements included in this release and those contained in Citigroup's
filings with the SEC, including without limitation the "Risk Factors"
section of Citigroup's 2017 Form 10-K. Any forward-looking statements
made by or on behalf of Citigroup speak only as to the date they are
made, and Citi does not undertake to update forward-looking statements
to reflect the impact of circumstances or events that arise after the
date the forward-looking statements were made.

 
Appendix A
             
Citigroup   3Q'18   2Q'18   3Q'17

($ in millions)

           
Net Income $ 4,622 $ 4,490 $ 4,133
Less: Preferred Dividends   270     318   272
Net Income to Common Shareholders $ 4,352 $ 4,172 $ 3,861
 
Common Share Repurchases 5,270
Common Dividends   1,126  
Total Capital Returned to Common Shareholders $ 6,396
 
Payout Ratio 147 %
 
Average TCE $ 152,712
 
RoTCE 11.3 %
Note: Totals may not sum due to rounding.
 
 
Appendix B
         
Citigroup   3Q'18   3Q'17

(Revenues in $ millions; balance sheet items in $ billions)

       
Reported Revenues $ 18,389 $ 18,419
Impact of FX Translation   -   (335 )
Revenues in Constant Dollars $ 18,389 $ 18,084
 
Reported EOP Loans $ 675 $ 653
Impact of FX Translation   -   (7 )
EOP Loans in Constant Dollars $ 675 $ 647
 
Reported EOP Deposits $ 1,005 $ 964
Impact of FX Translation   -   (11 )
EOP Deposits in Constant Dollars $ 1,005 $ 953
Note: Totals may not sum due to rounding.
         
Global Consumer Banking 3Q'18 3Q'17

($ in millions)

       
Reported Revenues $ 8,654 $ 8,470
Impact of FX Translation   -   (106 )
Revenues in Constant Dollars $ 8,654 $ 8,364
 
Reported Expenses $ 4,661 $ 4,452
Impact of FX Translation   -   (53 )
Expenses in Constant Dollars $ 4,661 $ 4,399
 
Reported Credit Costs $ 1,933 $ 2,213
Impact of FX Translation   -   (23 )
Credit Costs in Constant Dollars $ 1,933 $ 2,190
 
Reported Net Income $ 1,566 $ 1,168
Impact of FX Translation   -   (18 )
Net Income in Constant Dollars $ 1,566 $ 1,150
Note: Totals may not sum due to rounding.
         
Latin America Consumer Banking 3Q'18 3Q'17

($ in millions)

       
Reported Revenues $ 1,670 $ 1,388
Impact of FX Translation   -   (66 )
Revenues in Constant Dollars $ 1,670 $ 1,322
Note: Totals may not sum due to rounding.
         
Asia Consumer Banking(1) 3Q'18 3Q'17

($ in millions)

       
Reported Revenues $ 1,855 $ 1,885
Impact of FX Translation   -   (40 )
Revenues in Constant Dollars $ 1,855 $ 1,845
Note: Totals may not sum due to rounding.
(1) Asia GCB includes the results of operations in EMEA GCB for all
periods presented.
         
Treasury and Trade Solutions 3Q'18 3Q'17

($ in millions)

       
Reported Revenues $ 2,283 $ 2,185
Impact of FX Translation   -   (68 )
Revenues in Constant Dollars $ 2,283 $ 2,117
Note: Totals may not sum due to rounding.
 
 
Appendix C
     

($ in millions)

9/30/2018(1)

  6/30/2018   9/30/2017
 
 
Citigroup Common Stockholders' Equity(2) $ 178,153 $ 181,243 $ 208,565
Add: Qualifying noncontrolling interests 148 145 144
Regulatory Capital Adjustments and Deductions:
Less:
Accumulated net unrealized losses on cash flow hedges, net of tax(3) (1,095 ) (1,021 ) (437 )

Cumulative unrealized net gain (loss) related to changes in fair
value of financial liabilities attributable to own
creditworthiness, net of tax(4)

(503 ) (162 ) (416 )
Intangible Assets:
Goodwill, net of related deferred tax liabilities (DTLs)(5) 21,891 21,809 21,532

Identifiable intangible assets other than mortgage servicing
rights (MSRs), net of related DTLs

4,304 4,461 4,410
Defined benefit pension plan net assets 931 882 720

Deferred tax assets (DTAs) arising from net operating loss,
foreign tax credit and general business credit carry-forwards

12,345 12,551 20,068

Excess over 10% / 15% limitations for other DTAs, certain common
stock investments, and MSRs(6)

- - 9,298
             
Common Equity Tier 1 Capital (CET1)   $ 140,428     $ 142,868     $ 153,534  
             
Risk-Weighted Assets (RWA)   $ 1,194,204     $ 1,176,863     $ 1,182,918  
             
Common Equity Tier 1 Capital Ratio (CET1 / RWA)     11.8 %     12.1 %     13.0 %
Note:   Citi's reportable CET1 Capital ratios were derived under the U.S.
Basel III Standardized Approach framework for all periods presented.
This reflects the lower of the CET1 Capital ratios under both the
Standardized Approach and the Advanced Approaches under the Collins
Amendment.
(1) Preliminary.
(2) Excludes issuance costs related to outstanding preferred stock in
accordance with Federal Reserve Board regulatory reporting
requirements.
(3) Common Equity Tier 1 Capital is adjusted for accumulated net
unrealized gains (losses) on cash flow hedges included in
accumulated other comprehensive income that relate to the hedging of
items not recognized at fair value on the balance sheet.
(4) The cumulative impact of changes in Citigroup's own creditworthiness
in valuing liabilities for which the fair value option has been
elected, and own-credit valuation adjustments on derivatives, are
excluded from Common Equity Tier 1 Capital, in accordance with the
U.S. Basel III rules.
(5) Includes goodwill "embedded" in the valuation of significant common
stock investments in unconsolidated financial institutions.
(6) Assets subject to 10% / 15% limitations include MSRs, DTAs arising
from temporary differences and significant common stock investments
in unconsolidated financial institutions. As of September 30, 2017,
the deduction related only to DTAs arising from temporary
differences that exceeded the 10% limitation.
 
 
Appendix D
     
($ in millions)  

9/30/2018(1)

  6/30/2018   9/30/2017
 
 
Common Equity Tier 1 Capital (CET1) $ 140,428 $ 142,868 $ 153,534
 
Additional Tier 1 Capital (AT1)(2) 19,155 19,134 19,315
             
Total Tier 1 Capital (T1C) (CET1 + AT1)   $ 159,583     $ 162,002     $ 172,849  
             
Total Leverage Exposure (TLE)   $ 2,459,896     $ 2,453,497     $ 2,430,582  
             
Supplementary Leverage Ratio (T1C / TLE)     6.5 %     6.6 %     7.1 %

(1)

 

Preliminary.

(2)

Additional Tier 1 Capital primarily includes qualifying
noncumulative perpetual preferred stock and qualifying trust
preferred securities.
 
 
Appendix E
($ and shares in millions, except per share amounts)    

9/30/2018(1)

    6/30/2018     9/30/2017
Common Stockholders' Equity $ 177,969 $ 181,059 $ 208,381
Less:
Goodwill 22,187 22,058 22,345
Intangible Assets (other than MSRs) 4,598 4,729 4,732
Goodwill and Identifiable Intangible Assets (other than MSRs)
Related to Assets Held-for-Sale
    -       32     48
Tangible Common Equity (TCE)   $ 151,184     $ 154,240   $ 181,256
             
Common Shares Outstanding (CSO)     2,442       2,517     2,644
             
Tangible Book Value Per Share (TCE / CSO)   $ 61.91     $ 61.29   $ 68.55
(1) Preliminary.
 
___________________________________
1 Citigroup's total expenses divided by total revenues.
 
2 Preliminary. Citigroup's return on average tangible
common equity (RoTCE) is a non-GAAP financial measure. RoTCE
represents annualized net income available to common shareholders as
a percentage of average tangible common equity (TCE). For the
components of the calculation, see Appendix A.
 
3 Ratios as of September 30, 2018 are preliminary.
Citigroup's Common Equity Tier 1 (CET1) Capital ratio and
Supplementary Leverage Ratio (SLR) reflect full implementation of
the U.S. Basel III rules for all periods. As of December 31, 2017
and for all prior periods, these ratios are non-GAAP financial
measures, which reflect full implementation of regulatory capital
adjustments and deductions prior to the effective date of January 1,
2018. For the composition of Citigroup's CET1 Capital and ratio, see
Appendix C. For the composition of Citigroup's SLR, see Appendix D.
 
4 Citigroup's payout ratio is the sum of common dividends
and common share repurchases divided by net income available to
common shareholders. For the components of the calculation, see
Appendix A.
 
5 Citigroup's tangible book value per share is a non-GAAP
financial measure. For a reconciliation of this measure to reported
results, see Appendix E.
 
6 Results of operations excluding the impact of foreign
exchange translation (constant dollar basis) are non-GAAP financial
measures. For a reconciliation of these measures to reported
results, see Appendix B.
 
7 Credit derivatives are used to economically hedge a
portion of the corporate loan portfolio that includes both accrual
loans and loans at fair value. Gains / (losses) on loan hedges
includes the mark-to-market on the credit derivatives and the
mark-to-market on the loans in the portfolio that are at fair value.
The fixed premium costs of these hedges are netted against the
corporate lending revenues to reflect the cost of credit protection.
Citigroup's results of operations excluding the impact of gains /
(losses) on loan hedges are non-GAAP financial measures.
 

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