First Quarter 2017 Earnings Review April 13, 2017 Overview First - PowerPoint PPT Presentation

Citi | Investor Relations First Quarter 2017 Earnings Review April 13, 2017

Overview First quarter showed continued momentum across the franchise – Revenue growth YoY in both Consumer and Institutional businesses – Strong performance in Markets and Investment Banking, continued momentum in TTS – Growth in loans and deposits, with continued expense discipline Focus on further progress in 2017 – Continued momentum on franchise investments and further reduction in legacy assets – Utilized ~$800 million in deferred tax assets – Returned ~$2.2B of capital to common shareholders in 1Q’17 Significant capital and liquidity – Common Equity Tier 1 Capital Ratio increased to 12.8% (1) – Supplementary Leverage Ratio remained strong at 7.3% (1) – Tangible Book Value per share increased 5% YoY to $65.94 (2) Note: (1) Preliminary. Ratios reflect full implementation of the U.S. Basel III rules and are non-GAAP financial measures. For additional information on these measures, please refer 2 to Slides 26 and 27. (2) Preliminary. Tangible Book Value per share is a non-GAAP financial measure. For additional information on this measure, please refer to Slide 27.

Citigroup – Summary Financial Results ($MM, except EPS) % r % r 1Q'17 4Q'16 1Q'16 Revenues $18,120 $17,012 7% $17,555 3% Operating Expenses 10,477 10,120 4% 10,523 (0)% Efficiency Ratio 58% 59% 60% Net Credit Losses 1,709 1,696 1% 1,724 (1)% (1) Net LLR Build / (Release) (77) 64 NM 233 NM PB&C 30 32 (6)% 88 (66)% Cost of Credit 1,662 1,792 (7)% 2,045 (19)% EBT 5,981 5,100 17% 4,987 20% Income Taxes 1,863 1,509 23% 1,479 26% Effective Tax Rate 31% 30% 30% Net Income $4,090 $3,573 14% $3,501 17% 10.2% RoTCE for Return on Assets 0.91% 0.78% 0.79% 1Q’17 excluding (2) Return on Tangible Common Equity 8.5% 7.1% 7.3% impact of Diluted EPS $1.35 $1.14 18% $1.10 23% disallowed DTA (2) Average Diluted Shares 2,766 2,814 (2)% 2,943 (6)% Average Assets ($B) $1,831 $1,820 1% $1,778 3% EOP Assets (Constant $B) 1,822 1,812 1% 1,780 2% EOP Loans (Constant $B) 629 632 (1)% 614 2% EOP Deposits (Constant $B) 950 940 1% 924 3% Note: Totals may not sum due to rounding. NM: Not meaningful. Constant dollar excludes the impact of foreign exchange translation into U.S. dollars for reporting purposes and is a non-GAAP financial measure. For a reconciliation of constant dollars to reported results, please refer to Slide 28. (1) Includes provision for unfunded lending commitments. 3 (2) Preliminary. Return on Tangible Common Equity (RoTCE) and RoTCE excluding impact of disallowed DTA are non-GAAP financial measures. For additional information on these measures, please refer to Slide 28.

North America Consumer Banking ($MM) % r % r • Revenues 1Q'17 4Q'16 1Q'16 Revenues $4,944 $5,059 (2)% $4,830 2% – Retail Banking: Excluding mortgage,  Retail Banking 1,256 1,263 (1)% 1,290 (3)% revenues up 5% YoY driven by Mortgage 181 252 (28)% 264 (31)% continued growth in average loans, Retail ex. Mortgage 1,075 1,012 6% 1,027 5% deposits and AUMs  Branded Cards 2,096 2,213 (5)% 1,860 13% – Branded Cards: Up 13% YoY reflecting  Retail Services 1,592 1,583 1% 1,680 (5)% the contribution from the Costco portfolio (1) and modest organic growth, Expenses 2,576 2,537 2% 2,500 3% offset by the impact of day count Credit Costs 1,355 1,230 10% 1,021 33% – Retail Services: Down 5% driven by the EBT 1,013 1,292 (22)% 1,309 (23)% absence of gains on sales of two Net Income $627 $811 (23)% $833 (25)% portfolios sold in 1Q’16 • Expenses Key Indicators ($B, except branches) – Operating expenses up 3% YoY mostly Branches 705 723 (2)% 729 (3)% reflecting the Costco portfolio acquisition, RB Average Deposits $186 $186 (0)% $181 3% higher volumes and continued RB Average Loans 55 55 1% 53 5% investments, partially offset by efficiency Investment AUMs 55 53 4% 49 12% savings and lower repositioning costs Branded Cards Average Loans 83 82 1% 65 28% • Credit Costs Branded Cards Purchase Sales 73 79 (8)% 46 58% – NCLs increased 28% YoY mostly driven Retail Services Average Loans 45 45 1% 44 3% by Costco, organic volume growth and Retail Services Purchase Sales 17 23 (27)% 17 0% seasoning and the impact of changes in collection processes in cards – Net LLR build of $159MM driven by volume growth, compared to a build of $79MM in 1Q’16 4 Note: Totals may not sum due to rounding. (1) Citi acquired the Costco portfolio on June 17, 2016.

International Consumer Banking (in Constant $MM) % r % r • Revenues 1Q'17 4Q'16 1Q'16 Revenues $2,873 $2,937 (2)% $2,781 3% – Latin America up 4% YoY driven by 8%  Latin America 1,151 1,220 (6)% 1,107 4% growth in retail banking, reflecting (1)  Asia 1,722 1,717 0% 1,674 3% continued growth in average loans and deposits, as well as improved deposit Expenses 1,839 1,838 0% 1,859 (1)% spreads, partially offset by lower cards  Latin America 659 692 (5)% 661 (0)% revenues (1)  Asia 1,180 1,146 3% 1,198 (2)% – Asia up 3% YoY driven by improvement in Credit Costs 460 485 (5)% 434 6% cards and wealth management, partially offset by lower retail lending revenues EBT 574 614 (7)% 488 18% • Expenses Net Income $375 $416 (10)% $334 12% – Operating expenses down 1% YoY as Key Indicators (in Constant $B, except branches) investment spending was more than offset Branches 1,896 1,895 0% 1,941 (2)% by efficiency savings and lower RB Average Deposits $118 $115 3% $111 6% repositioning costs RB Average Loans 83 83 1% 86 (3)% • Credit Costs Investment AUMs 92 89 3% 88 4% – NCL rate of 1.58 % vs. 1.55% in 1Q’16 Cards Average Loans 23 22 3% 22 3% – Net credit losses of $413MM down 1% Cards Purchase Sales 23 24 (4)% 22 5% compared to 1Q’16 – Net LLR build of $24 MM in 1Q’17 compared to build of $2MM in 1Q’16 Note: Totals may not sum due to rounding. Constant dollar excludes the impact of foreign exchange translation into U.S. dollars for reporting purposes. For a reconciliation of 5 constant dollars to reported results, please refer to Slide 28. (1) Asia GCB includes the results of operations of GCB activities in certain EMEA countries for all periods presented.

Global Consumer Banking – Credit Trends (EOP Loans in Constant $B) NCL 90+ DPD Global Consumer Banking North America 1Q'16 4Q'16 1Q'17 1Q'16 4Q'16 1Q'17 EOP EOP Loans $270.3 $297.2 $291.3 Loans $160.9 $188.6 $181.9 2.63% 2.58% 2.42% 2.34% 2.32% 2.26% 2.24% 2.21% 2.22% 2.10% 2.07% 2.05% 2.04% 1.99% 2.02% 1.87% 0.90% 0.89% 0.85% 0.84% 0.85% 0.79% 0.77% 0.69% 0.75% 0.79% 0.77% 0.77% 0.75% 0.74% 0.74% 0.75% 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 Latin America Asia (1) EOP 1Q'16 4Q'16 1Q'17 EOP 1Q'16 4Q'16 1Q'17 Loans $23.1 $24.9 $24.9 Loans $86.3 $83.7 $84.5 4.78% 4.70% 4.58% 4.71% 4.44% 4.30% 4.20% 4.18% 0.84% 0.85% 0.80% 0.78% 0.79% 0.78% 0.76% 0.76% 1.62% 1.53% 1.43% 1.28% 1.25% 1.23% 1.17% 1.12% 0.42% 0.42% 0.42% 0.41% 0.41% 0.41% 0.41% 0.41% 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 6 Note: (1) Asia GCB includes the results of operations of GCB activities in certain EMEA countries for all periods presented.

Institutional Clients Group ($MM) • Revenues % r % r 1Q'17 4Q'16 1Q'16 Product Revenues – Total Banking (1) : Up 14% YoY  Total Banking $4,467 $4,259 5% $3,908 14% driven by continued solid - Treasury & Trade Solutions 2,075 2,009 3% 1,903 9% performance in TTS and Private Bank, as well as a rebound in - Investment Banking 1,214 1,131 7% 873 39% Investment Banking - Private Bank 744 671 11% 684 9% (1) - Corporate Lending 434 448 (3)% 448 (3)% – Total Markets & Sec. Services up  Total Markets & Securities Services $4,774 $4,032 18% $4,053 18% 18% YoY driven by increased - Fixed Income Markets 3,622 2,957 22% 3,051 19% client activity and strong trading - Equity Markets 769 685 12% 697 10% performance: - Securities Services 543 529 3% 561 (3)% • Fixed Income up 19% YoY - Other (160) (139) (15)% (256) 38% reflecting strength in both rates (1) Product Revenues 9,241 8,291 11% 7,961 16% and currencies and spread (1) products Gain / (Loss) on Loan Hedges (115) (107) (7)% (66) (74)% • Equity Markets up 10% YoY $8,184 12% $7,895 16% Total Revenues $9,126 reflecting an improvement in equity 4,634 7% 4,872 1% Expenses 4,945 derivatives Credit Costs (205) 104 NM 390 NM • Expenses 3,446 27% 2,633 67% EBT 4,386 – Up 1% YoY as higher incentive Net Income $2,996 $2,369 26% $1,859 61% compensation was partially offset by lower repositioning costs and a benefit from FX translation Note: Totals may not sum due to rounding. NM: Not meaningful. (1) Corporate Lending revenues exclude the impact of gains / (losses) on hedges related to accrual loans and are non-GAAP financial measures. Hedges on accrual loans reflect 7 the mark-to-market on credit derivatives used to hedge the corporate accrual loan portfolio. The fixed premium cost of these hedges is included in (netted against) the core Corporate Lending revenues.