Second Quarter 2017 Earnings Review July 14, 2017 Overview - PowerPoint PPT Presentation

Citi | Investor Relations Second Quarter 2017 Earnings Review July 14, 2017

Overview Continued momentum across the franchise in the 2Q’17 – Continued revenue growth YoY in both Consumer and Institutional businesses – Strong Investment Banking results with continued momentum in TTS and Private Bank – Broad based sequential loan growth across regions and products Significant capital and liquidity – Generated $4.7B of regulatory capital and returned $2.2B to common shareholders – Common Equity Tier 1 Capital Ratio increased to 13.0% (1) – Supplementary Leverage Ratio remained strong at 7.2% (1) – Tangible Book Value per share increased 6% YoY to $67.32 (2) Focus on further progress on key priorities in 2017 – Continued momentum on franchise growth and further reduction in legacy assets – 2017 CCAR results include planned capital return of $18.9B to common shareholders – On track to increase both the return on capital and return of capital over time 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 % r 2Q'17 1Q'17 2Q'16 1H'17 Revenues $17,901 $18,120 (1)% $17,548 2% $36,021 3% Operating Expenses 10,506 10,477 0% 10,369 1% 20,983 0% Efficiency Ratio 59% 58% 59% 58% Net Credit Losses 1,710 1,709 0% 1,616 6% 3,419 2% (1) Net LLR Build / (Release) (16) (77) 79% (256) 94% (93) NM PB&C 23 30 (23)% 49 (53)% 53 (61)% Cost of Credit 1,717 1,662 3% 1,409 22% 3,379 (2)% EBT 5,678 5,981 (5)% 5,770 (2)% 11,659 8% Income Taxes 1,795 1,863 (4)% 1,723 4% 3,658 14% Effective Tax Rate 32% 31% 30% 31% 9.7% RoTCE for Net Income $3,872 $4,090 (5)% $3,998 (3)% $7,962 6% 1H’17 excluding Return on Assets 0.83% 0.91% 0.89% 0.87% (2) impact of Return on Tangible Common Equity 7.8% 8.5% 8.0% 8.2% disallowed DTA (2) EPS $1.28 $1.35 (5)% $1.24 3% $2.63 12% Average Diluted Shares 2,739 2,766 (1)% 2,916 (6)% 2,752 (6)% Average Assets ($B) $1,869 $1,850 $1,831 2% $1,807 3% 3% EOP Assets (Constant $B) 1,864 1,864 1,841 1% 1,823 2% 2% EOP Loans (Constant $B) 645 645 632 2% 635 2% 2% EOP Deposits (Constant $B) 959 957 0% 939 2% 959 2% 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) QoQ % r YoY % r % r • Revenues 2Q'17 1H'17 Revenues $4,944 0% 5% $9,888 4% – Retail Banking: Excluding mortgage,  Retail Banking 1,291 3% (2)% 2,547 (2)% revenues up 7% YoY driven by Mortgage 188 4% (33)% 369 (32)% continued growth in average loans, Retail ex. Mortgage 1,104 3% 7% 2,179 6% deposits and AUMs as well as a benefit  Branded Cards 2,079 (1)% 10% 4,175 11% from higher rates  Retail Services 1,574 (1)% 4% 3,166 (1)% – Branded Cards: Up 10% YoY reflecting the Costco portfolio (1) contribution and Expenses 2,577 0% 6% 5,153 5% modest core organic growth, partially Operating Margin 2,367 (0)% 4% 4,735 3% offset by the run-off of non-core portfolios Credit Costs 1,292 (5)% 27% 2,647 30% – Retail Services: Up 4% reflecting EBT 1,075 6% (15)% 2,088 (19)% continued loan growth and a favorable Net Income $670 $1,297 prior period comparison 7% (18)% (21)% • Expenses Key Indicators ($B, except branches) – Operating expenses up 6% YoY driven Branches 695 (1)% (5)% 695 (5)% by Costco, higher volumes and RB Average Deposits $185 (0)% 2% $185 2% investments, partially offset by efficiency RB Average Loans 56 0% 2% 56 3% savings Investment AUMs 57 3% 10% 57 10% • Credit Costs Branded Cards Average Loans 83 1% 25% 83 26% – NCLs increased 24% YoY driven by Branded Cards Purchase Sales 81 11% 52% 153 55% Costco, organic volume growth and Retail Services Average Loans 45 (2)% 4% 45 3% seasoning and the impact of changes in Retail Services Purchase Sales 21 22% 2% 38 1% collections activity in Retail Services – Net LLR build of $103MM driven by volume growth and changes in collections activity, compared to a build of $56MM in 2Q’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) QoQ % r YoY % r % r • Revenues 2Q'17 1H'17 Revenues $3,091 4% 5% $5,964 4% – Latin America up 8% YoY driven by 12%  Latin America 1,290 5% 8% 2,441 6% growth in retail banking, reflecting (1)  Asia 1,801 4% 3% 3,523 3% continued growth in average loans and deposits, as well as improved deposit Expenses 1,920 2% 3% 3,759 1% spreads, partially offset by lower cards  Latin America 735 6% 4% 1,394 2% revenues (1)  Asia 1,185 (1)% 3% 2,365 1% – Asia up 3% YoY driven by improvement in Operating Margin 1,171 9% 8% 2,205 10% cards and wealth management, partially Credit Costs 470 (2)% 18% 930 12% offset by lower retail lending revenues • Expenses EBT 701 18% 3% 1,275 9% Net Income $455 17% (2)% $830 4% – Operating expenses up 3% YoY driven by investment spending and volume growth, Key Indicators (in Constant $B, except branches) partially offset by efficiency savings Branches 1,875 (1)% (2)% 1,875 (2)% • Credit Costs RB Average Deposits $122 1% 7% $120 6% RB Average Loans 87 1% (0)% 85 (1)% – NCL rate of 1.58 % vs. 1.52% in 2Q’16 Investment AUMs 96 3% 7% 96 7% – Net credit losses of $434MM up 5% Cards Average Loans 24 1% 6% 23 5% compared to 2Q’16 Cards Purchase Sales 24 4% 7% 47 6% – Net LLR build of $21 MM in 2Q’17 compared to release of $25MM in 2Q’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 2Q'16 1Q'17 2Q'17 2Q'16 1Q'17 2Q'17 EOP EOP Loans $286.3 $292.3 $298.5 Loans $175.6 $181.9 $186.4 2.63% 2.58% 2.42% 2.34% 2.32% 2.26% 2.24% 2.21% 2.20% 2.10% 2.07% 2.05% 2.04% 1.99% 2.02% 1.87% 0.90% 0.89% 0.85% 0.84% 0.85% 0.75% 0.79% 0.79% 0.81% 0.77% 0.77% 0.75% 0.74% 0.75% 0.73% 0.69% 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 Latin America Asia (1) EOP 2Q'16 1Q'17 2Q'17 EOP 2Q'16 1Q'17 2Q'17 Loans $24.6 $25.8 $26.5 Loans $86.1 $84.6 $85.6 4.78% 4.58% 4.70% 4.44% 4.36% 4.30% 4.20% 4.18% 0.85% 0.80% 0.78% 0.79% 0.78% 0.76% 0.76% 0.74% 1.53% 1.43% 1.28% 1.25% 1.23% 1.17% 1.17% 1.12% 0.42% 0.42% 0.43% 0.41% 0.41% 0.41% 0.41% 0.41% 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 6 Note: (1) Asia GCB includes the results of operations of GCB activities in certain EMEA countries for all periods presented.