Third Quarter 2016 Earnings Review October 14, 2016 Overview Third - PowerPoint PPT Presentation

Citi | Investor Relations Third Quarter 2016 Earnings Review October 14, 2016

Overview Third quarter showed solid performance across the franchise – Growth in North America, Asia and Mexico (1) Consumer both YoY and QoQ – Meaningful improvement in Markets and Banking with continued TTS momentum – Grew Citicorp loans in both Consumer and Institutional franchises Progress on key priorities – Investing in higher return businesses while maintaining expense and credit discipline – Further reduction in Citi Holdings assets – Returned ~$6B of capital to shareholders year-to-date Simpler, smaller, safer and stronger institution with significant capital and liquidity – Common Equity Tier 1 Capital Ratio increased to 12.6% (2) – Supplementary Leverage Ratio remained strong at 7.4% (2) – Tangible Book Value per share increased 8% YoY to $64.71 (3) Note: Excluding ~$160MM one- time gain (in constant dollars, $180MM as reported), related to the 3Q’15 sale of Citi’s merchant acquiring business in Mexi co. See Slide 3 for (1) information on constant dollars. (2) 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 34 and 35. (3) Preliminary. Tangible Book Value per share is a non-GAAP financial measure. For additional information on this measure, please refer to Slide 35.

Citigroup – Summary Financial Results (1) ($MM, except EPS) % r % r % r 3Q'16 2Q'16 3Q'15 YTD'16 Net Interest Revenue 11,479 11,236 2% 11,773 (2)% 33,942 (3)% Non-Interest Revenue 6,281 6,312 (0)% 6,723 (7)% 18,921 (15)% Revenues $17,760 $17,548 1% $18,496 (4)% $52,863 (8)% Core Operating 10,002 9,918 1% 10,211 (2)% 29,787 (5)% (2) Legal & Repositioning 402 451 (11)% 458 (12)% 1,509 18% Operating Expenses 10,404 10,369 0% 10,669 (2)% 31,296 (4)% Net Credit Losses 1,525 1,616 (6)% 1,663 (8)% 4,865 (12)% (3) Net LLR Build / (Release) 176 (256) NM (16) NM 153 NM PB&C 35 49 (29)% 189 (81)% 172 (70)% Cost of Credit 1,736 1,409 23% 1,836 (5)% 5,190 (4)% EBT 5,620 5,770 (3)% 5,991 (6)% 16,377 (16)% Income Taxes 1,733 1,723 1% 1,812 (4)% 4,935 (16)% Effective Tax Rate 31% 30% 30% 30% $3,998 (4)% $4,164 (8)% (17)% Net Income $3,840 $11,339 Return on Assets 0.83% 0.89% 0.91% 0.84% (4) Return on Tangible Common Equity 7.8% 8.0% 8.9% 7.7% Diluted EPS $1.24 $1.24 0% $1.31 (5)% $3.58 (17)% Average Diluted Shares 2,880 2,916 (1)% 2,997 (4)% 2,913 (4)% Average Assets ($B) $1,830 $1,807 1% $1,818 1% $1,805 (2)% EOP Assets (Constant $B) 1,818 1,818 1,820 (0)% 1,812 0% 0% EOP Loans (Constant $B) 638 638 634 1% 622 3% 3% EOP Deposits (Constant $B) 940 940 938 0% 905 4% 4% 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 37. Adjusted results exclude CVA / DVA in 3Q’15 and YTD’15 and are non -GAAP financial measures. Please refer to Slide 36 for a reconciliation of this information to reported (1) results. Legal and related and repositioning expenses were $1,282MM in YTD’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 35 and 36.

Citicorp & Citi Holdings (1) ($MM) Citicorp Citi Holdings % r % r % r % r 3Q'16 3Q'15 YTD'16 3Q'16 3Q'15 YTD'16 Revenues $16,883 $16,790 1% $49,668 (4)% $877 $1,706 (49)% $3,195 (45)% Core Operating 9,289 8,991 3% 27,565 1% 713 1,221 (42)% 2,222 (41)% (2) Legal & Repositioning 289 304 (5)% 1,219 29% 113 153 (26)% 290 (15)% Operating Expenses 9,578 9,295 3% 28,784 1% 826 1,374 (40)% 2,512 (39)% Efficiency Ratio 57% 55% 58% Cost of Credit 1,719 1,593 8% 5,101 16% 17 243 (93)% 89 (91)% EBT 5,586 5,902 (5)% 15,783 (17)% 34 89 (62)% 594 (13)% Net Income $3,766 $4,149 (9)% $10,826 (19)% $74 $15 NM $513 62% Average Assets ($B) $1,766 $1,734 $64 $71 $1,698 4% 1% $120 (47)% (44)% EOP Assets (Constant $B) 1,757 1,757 61 61 1,692 4% 4% 120 (49)% (49)% EOP Loans (Constant $B) 599 599 39 39 561 7% 7% 60 (35)% (35)% EOP Deposits (Constant $B) 934 934 6 6 892 5% 5% 9 (37)% (37)% 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 a reconciliation of constant dollars to reported results, please refer to Slide 37. 4 Adjusted results exclude CVA / DVA in 3Q’15. Please refer to Slide 36 for a reconciliation of this information to reported results. (1) Legal and related and repositioning expenses were $943MM in Citicorp in YTD’15 and $339MM in Citi Holdings in YTD’15. (2)

North America Consumer Banking ($MM) • Revenues QoQ % r YoY % r % r 3Q'16 YTD'16 – Retail Banking: Up 2% YoY reflecting Revenues $5,212 $14,842 10% 7% (0)% continued growth in average loans and  Retail Banking 1,374 3% 2% 4,011 (3)% checking deposits  Branded Cards 2,213 16% 15% 6,000 2%  Retail Services – Branded Cards: Up 15% YoY reflecting 1,625 7% 1% 4,831 (0)% the first full quarter contribution from the Costco portfolio (2) as well as modest Core Operating 2,586 6% 12% 7,421 7% (1) Legal & Repositioning 14 NM (14)% 117 NM organic growth Expenses 2,600 7% 12% 7,538 8% – Retail Services: Up 1% YoY reflecting volume growth partially offset by the Credit Costs 1,344 3,383 32% 62% 30% absence of two portfolios sold in 1Q’16 EBT 1,268 3,921 (3)% (27)% (26)% and the impact of partnership renewals Net Income $811 (4)% (25)% $2,514 (24)% • Expenses Key Indicators ($B, except branches) – Operating expenses up 12% YoY mostly reflecting the Costco portfolio acquisition, Branches 727 (0)% (7)% 727 (7)% higher volumes and continued marketing RB Average Deposits $184 1% 1% $182 1% investments RB Average Loans 55 1% 9% 54 10% • Credit Costs Investment Sales 5 (5)% 6% 16 (9)% – NCLs increased 6% YoY on volume Branded Cards Average Loans 79 19% 24% 70 10% growth Branded Cards Purchase Sales 73 38% 57% 172 29% – Net LLR build of $408MM in 3 Q’16 Retail Services Average Loans 44 2% 1% 43 0% driven by Costco, organic loan growth Retail Services Purchase Sales 20 (2)% (1)% 57 0% and the estimated impact of proposed regulatory guidelines, compared to a release of $61MM in 3Q’15 Note: Totals may not sum due to rounding. NM: Not meaningful. 5 Legal and related and repositioning expenses were $1MM in 2Q’16, $16MM in 3Q’15 and $34MM in YTD’15. (1) (2) Citi acquired the Costco portfolio on June 17, 2016.

International Consumer Banking (in Constant $MM) QoQ % r YoY % r % r • Revenues 3Q'16 YTD'16 Revenues $3,015 3% (2)% $8,888 (1)% – Latin America up 5% YoY excluding the  Latin America one time gain in 3Q’15 (1) , reflecting 1,257 6% (7)% 3,746 (0)% (2)  Asia continued momentum in retail banking 1,758 1% 3% 5,142 (2)% – Asia up 3% YoY driven by growth in Core Operating 1,822 (1)% (2)% 5,504 0% wealth management and cards (3) Legal & Repositioning 18 NM NM 110 NM • Expenses Expenses 1,840 (0)% (0)% 5,614 1%  Latin America 713 2% (0)% 2,159 (1)% – Operating expenses flat YoY as efficiency (2)  Asia 1,127 (2)% 0% 3,455 3% savings offset the impact of investments and volume growth, resulting in positive Credit Costs 465 18% 13% 1,336 2% YoY operating leverage EBT 710 4% (13)% 1,938 (10)% • Credit Costs Net Income $474 1% (15)% $1,322 (12)% – NCL rate of 1.53 % vs. 1.59% in 3Q’15 Key Indicators (in Constant $B, except branches) – Net credit losses of $422MM down 5% Branches 1,952 0% (3)% 1,952 (3)% compared to 3Q’15 RB Average Deposits $119 2% 7% $117 6% – Net LLR build of $25 MM in 3Q’16 RB Average Loans 87 (0)% (2)% 87 (1)% compared to release of $47 MM in 3Q’15 Investment Sales 14 7% 2% 39 (22)% Cards Average Loans 23 1% 2% 23 2% Cards Purchase Sales 23 (1)% 2% 67 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. For a reconciliation of constant dollars to reported results, please refer to Slide 37. YoY variance excludes ~$160MM one-time gain in constant dollars ($180MM as reported), related to the 3Q’15 sale of Citi’s merchant acquiring business in Mexico. (1) 6 (2) Asia GCB includes the results of operations of EMEA GCB for all periods presented. Legal and related and repositioning expenses were $8MM in 2Q’16, $(10)MM in 3Q’15 and $50MM in YTD’15. (3)