Second Quarter 2016 Earnings Review July 15, 2016 Overview Second - PowerPoint PPT Presentation

Citi | Investor Relations Second Quarter 2016 Earnings Review July 15, 2016

Overview Second quarter showed solid progress in a challenging and volatile environment – Grew Citicorp loans in both Consumer and Institutional franchises – Rebound in client activity in Markets and Banking with continued TTS momentum – Solid YoY growth in Mexico and continued sequential growth in Asia Consumer – Acquired Costco portfolio and renewed key partnerships in NA Cards – Further reduction in Citi Holdings assets Simpler, smaller, safer and stronger institution with significant capital and liquidity – Common Equity Tier 1 Capital Ratio increased to 12.5% (1) – Supplementary Leverage Ratio increased to 7.5% (1) – Tangible Book Value per share increased to $63.53 (2) Progress on key priorities – Utilized $900 million in deferred tax assets in 2Q’16 and $2.4 billion YTD – Positive results on CCAR 2016 Capital Plan and 2015 Resolution Plan – Capital Plan includes capital return of ~$10.4 billion to shareholders over next year 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 36 and 37. (2) Preliminary. Tangible Book Value per share is a non-GAAP financial measure. For additional information on this measure, please refer to Slide 37.

Citigroup – Summary Financial Results (1) ($MM, except EPS) % r % r % r 2Q'16 1Q'16 2Q'15 1H'16 Revenues $17,548 $17,555 (0)% $19,158 (8)% $35,103 (10)% Core Operating 9,918 9,867 1% 10,507 (6)% 19,785 (6)% (2) Legal & Repositioning 451 656 (31)% 421 7% 1,107 34% Operating Expenses 10,369 10,523 (1)% 10,928 (5)% 20,892 (4)% Net Credit Losses 1,616 1,724 (6)% 1,920 (16)% 3,340 (14)% (3) Net LLR Build / (Release) (256) 233 NM (453) 43% (23) 97% PB&C 49 88 (44)% 181 (73)% 137 (64)% Cost of Credit 1,409 3,454 2,045 (31)% 1,648 (15)% (3)% EBT 5,770 10,757 4,987 16% 6,582 (12)% (21)% Income Taxes 1,723 3,202 1,479 16% 1,920 (10)% (21)% Effective Tax Rate 30% 30% 29% 30% Net Income $3,998 $7,499 $3,501 14% $4,650 (14)% (21)% Return on Assets 0.89% 0.79% 1.01% 0.84% (4) Return on Tangible Common Equity 8.0% 7.3% 10.1% 7.7% Diluted EPS $1.24 $1.10 13% $1.45 (14)% $2.35 (21)% Average Diluted Shares 2,916 2,943 (1)% 3,025 (4)% 2,930 (3)% Average Assets ($B) $1,807 $1,778 2% $1,840 (2)% $1,793 (3)% EOP Assets (Constant $B) 1,819 1,792 2% 1,809 1% 1,819 1% EOP Loans (Constant $B) 634 634 615 3% 621 2% 2% EOP Deposits (Constant $B) 938 938 929 1% 891 5% 5% 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 39. Adjusted results exclude CVA / DVA in 2Q’15 and 1H’15 and are non -GAAP financial measures. Please refer to Slide 38 for a reconciliation of this information to reported (1) results. Legal and related and repositioning expenses were $824MM in 1H’15. (2) 3 (3) Includes provision for unfunded lending commitments. (4) Return on Tangible Common Equity (RoTCE) is a non-GAAP financial measure. For additional information on this measure, please refer to Slides 37 and 38.

Citicorp & Citi Holdings (1) ($MM) Citicorp Citi Holdings % r % r % r % r 2Q'16 1Q'16 2Q'15 2Q'16 1Q'16 2Q'15 Revenues $16,705 $16,080 4% $17,198 (3)% $843 $1,475 (43)% $1,960 (57)% Core Operating 9,200 9,075 1% 9,248 (1)% 718 792 (9)% 1,259 (43)% Legal & Repositioning 311 620 (50)% 318 (2)% 140 36 NM 103 36% Operating Expenses 9,511 9,695 (2)% 9,566 (1)% 858 828 4% 1,362 (37)% Efficiency Ratio 57% 60% 56% Cost of Credit 1,507 (98) 1,875 (20)% 1,337 13% 170 NM 311 NM EBT 5,687 4,510 26% 6,295 (10)% 83 477 (83)% 287 (71)% Net Income $3,905 $3,155 24% $4,500 (13)% $93 $346 (73)% $150 (38)% Average Assets ($B) $1,736 $1,700 2% $1,714 1% $71 $78 (9)% $126 (44)% EOP Assets (Constant $B) 1,753 1,718 2% 1,684 4% 66 73 (10)% 125 (47)% 570 4% 557 6% 46 (9)% 63 (35)% EOP Loans (Constant $B) 592 41 EOP Deposits (Constant $B) 932 920 1% 881 6% 6 9 (32)% 10 (35)% 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. For 4 a reconciliation of constant dollars to reported results, please refer to Slide 39. Adjusted results exclude CVA / DVA in 2Q’15. Please refer to Slide 38 for a reconciliation of this information to reported results. (1)

North America Consumer Banking ($MM) • Revenues QoQ % r YoY % r % r 2Q'16 1H'16 – Retail Banking: Down 4% YoY as Revenues $4,756 (2)% (3)% $9,630 (3)% continued growth in consumer and  Retail Banking 1,330 2% (4)% 2,637 (6)% commercial banking was more than  Branded Cards 1,907 1% (1)% 3,787 (4)% offset by lower mortgage activity  Retail Services 1,519 (10)% (4)% 3,206 (0)% – Branded Cards: Down 1% YoY as a modest benefit from Costco (2) was more Core Operating 2,431 1% 5% 4,835 4% (1) Legal & Repositioning 1 (99)% (92)% 103 NM than offset by the continued impact of higher rewards costs, as well as higher Expenses 2,432 (3)% 5% 4,938 6% payment rates Credit Costs 1,018 2,039 (0)% 13% 15% – Retail Services: Down 4% YoY primarily EBT 1,306 2,653 (3)% (22)% (25)% reflecting the impact of partnership Net Income $843 $1,703 (2)% (22)% (24)% renewals and the absence of two portfolios sold in the prior quarter • Expenses Key Indicators ($B, except branches) Branches 729 0% (6)% 729 (6)% – Operating expenses up 5% YoY driven RB Average Deposits $182 1% 1% $181 1% by the Costco portfolio acquisition as well RB Average Loans 54 3% 10% 54 10% as continued marketing investments, Investment Sales 6 15% (7)% 10 (16)% partially offset by efficiency savings • Credit Costs Branded Cards Average Loans 67 3% 6% 66 3% Branded Cards Purchase Sales 53 16% 15% 99 14% – NCLs declined 5% YoY driven by Retail Services Average Loans 43 (3)% 0% 43 0% continued improvement in Cards Retail Services Purchase Sales 20 19% (0)% 37 1% – Net LLR build of $57MM in 2Q’16 related to volume growth and the impact of the Costco portfolio, compared to a release of $108MM in 2Q’15 Note: Totals may not sum due to rounding. NM: Not meaningful. 5 Legal and related and repositioning expenses were $102MM in 1Q’16, $9MM in 2Q’15 and $18MM in 1H’15. (1) (2) Citi acquired the Costco portfolio on June 17, 2016.

International Consumer Banking (in Constant $MM) QoQ % r YoY % r % r • Revenues 2Q'16 1H'16 Revenues $2,977 3% (0)% $5,873 (1)% – Latin America up 4% YoY reflecting  Latin America 1,248 2% 4% 2,489 3% continued momentum in retail banking, (1)  Asia 1,729 3% (4)% 3,384 (4)% partially offset by lower cards revenues – Asia down 4% YoY driven by lower wealth Core Operating 1,864 2% 0% 3,682 1% (2) management and retail lending revenues, Legal & Repositioning 8 (91)% (72)% 92 54% while cards revenues were flat Expenses 1,872 (2)% (1)% 3,774 2% • Expenses  Latin America 726 2% (5)% 1,446 (2)% (1)  Asia 1,146 (4)% 2% 2,328 4% – Operating expenses down 1% YoY as a 5% decline in Latin America was partially Credit Costs 407 (12)% (13)% 871 (3)% offset by a 2% increase in Asia, due in part EBT 698 32% 10% 1,228 (7)% to higher repositioning expenses • Credit Costs Net Income $479 31% 7% $848 (11)% Key Indicators (in Constant $B, except branches) – NCL rate of 1.54 % vs. 1.65% in 2Q’15 Branches 1,952 (1)% (4)% 1,952 (4)% – Net credit losses of $420MM down 7% RB Average Deposits $117 0% 4% $116 5% compared to 2Q’15 RB Average Loans 87 (2)% (1)% 87 (0)% – Net LLR release of $25 MM in 2Q’16 compared to build of $6 MM in 2Q’15 Investment Sales 13 15% (28)% 25 (31)% Cards Average Loans 23 (2)% 1% 23 2% Cards Purchase Sales 23 2% 3% 44 3% 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 constant dollars to reported results, please refer to Slide 39. 6 (1) For reporting purposes, Asia GCB includes the results of operations of EMEA GCB for all periods presented. Legal and related and repositioning expenses were $84MM in 1Q’16, $28MM in 2Q’15 and $60MM in 1H’15. (2)