Third Quarter 2017 Earnings Review October 12, 2017 Overview 3Q17 - PowerPoint PPT Presentation

Citi | Investor Relations Third Quarter 2017 Earnings Review October 12, 2017

Overview 3Q’17 showed strong results and balanced performance across the franchise – Revenue growth and positive operating leverage across all regions in Consumer – Strong Investment Banking results and continued momentum in ICG accrual businesses – Broad based loan growth across regions and products – Results include gain ($0.13 per share) from the sale of a fixed income analytics business Optimizing capital base – Returned $6.4B of capital to common shareholders during the quarter – Common Equity Tier 1 Capital ratio reduced QoQ to 13.0% (1) – Tangible Book Value per share increased 6% YoY to $68.55 (2) Focus on further progress on key priorities – Continued momentum on franchise growth and further reduction in legacy assets – Progress on driving Common Equity Tier 1 Capital ratio towards 11.5% target – On track to increase both the return on capital and return of capital over time Note: (1) Preliminary. Common Equity Tier 1 Capital ratio reflects full implementation of the U.S. Basel III rules and is a non-GAAP financial measure. For additional information on 2 this measure, please refer to Slide 26. (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 3Q'17 2Q'17 3Q'16 YTD'17 Revenues $18,173 $17,901 2% $17,760 2% $54,194 3% Operating Expenses 10,171 10,506 (3)% 10,404 (2)% 31,154 (0)% Efficiency Ratio 56% 59% 59% 57% Net Credit Losses 1,777 1,710 4% 1,525 17% 5,196 7% (1) Net LLR Build / (Release) 194 (16) NM 176 10% 101 (34)% PB&C 28 23 22% 35 (20)% 81 (53)% Cost of Credit 1,999 1,717 16% 1,736 15% 5,378 4% EBT 6,003 5,678 6% 5,620 7% 17,662 8% Income Taxes 1,866 1,795 4% 1,733 8% 5,524 12% Effective Tax Rate 31% 32% 31% 31% 9.8% RoTCE for Net Income $4,133 $3,872 7% $3,840 8% $12,095 7% YTD’17 excluding Return on Assets 0.87% 0.83% 0.83% 0.87% (2) impact of Return on Tangible Common Equity 8.4% 7.8% 7.8% 8.3% disallowed DTA (2) EPS $1.42 $1.28 11% $1.24 15% $4.05 13% Average Diluted Shares 2,684 2,739 (2)% 2,880 (7)% 2,730 (6)% Average Assets ($B) $1,892 $1,864 $1,869 1% $1,830 3% 3% EOP Assets (Constant $B) 1,889 1,889 1,874 1% 1,830 3% 3% EOP Loans (Constant $B) 653 653 647 1% 642 2% 2% EOP Deposits (Constant $B) 964 963 0% 945 2% 964 2% • 3Q’17 results include a $580 million pre -tax gain ($355 million after-tax or $0.13 per share) from the sale of a fixed income analytics business 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 3Q'17 YTD'17 Revenues $5,194 $15,082 5% 1% 3% – Retail Banking: Excluding mortgage,  Retail Banking 1,363 6% 1% 3,910 (1)% revenues up 12% YoY driven by Mortgage 185 (1)% (39)% 553 (35)% continued growth in loans and AUMs as Retail ex. Mortgage 1,178 7% 12% 3,357 8% well as a benefit from higher rates  Branded Cards 2,178 5% (1)% 6,353 7% – Branded Cards: Down 1% YoY as  Retail Services 1,653 5% 2% 4,819 0% growth in core portfolios was outpaced by non-core run-off and the impact of Expenses 2,460 (5)% (5)% 7,613 1% higher cost of funds Operating Margin 2,734 16% 7% 7,469 4% – Retail Services: Up 2% reflecting Credit Costs 1,708 4,355 32% 27% 29% continued loan growth EBT 1,026 (5)% (16)% 3,114 (18)% • Expenses Net Income $655 $1,952 (2)% (16)% (20)% – Operating expenses down 5% YoY Key Indicators ($B, except branches, and as otherwise noted) driven by efficiency savings • Credit Costs Branches 695 0% (4)% 695 (4)% RB Average Deposits $184 (1)% 0% $185 1% – NCLs increased 34% YoY driven by RB Average Loans 56 0% 1% 56 3% Costco acquisition, episodic charge-offs Investment AUMs 59 3% 10% 59 10% in the commercial portfolio and organic volume growth and seasoning Branded Cards Average Loans 85 3% 8% 84 19% – Net LLR build of $460MM reflecting Branded Cards Purchase Sales 80 (0)% 10% 233 36% forward-looking NCL expectations in Retail Services Average Loans 46 2% 5% 45 4% Cards, volume growth and portfolio Retail Services Purchase Sales 20 (3)% 2% 58 1% seasoning, as well as hurricane-related (1) reserve builds Active Digital Customers (MM) 17 3% 13% (2) Active Mobile Customers (MM) 9 4% 22% Note: Totals may not sum due to rounding. 4 (1) Users of all online and/or mobile services within the last 90 days through August 2017. For additional information, please refer to Slide 20. (2) Users of all mobile services (mobile apps or via mobile browser) within the last 90 days through August 2017. For additional information, please refer to Slide 20.

International Consumer Banking (Constant $MM) QoQ % r YoY % r % r • Revenues 3Q'17 YTD'17 Revenues $3,239 3% 5% $9,203 4% – Latin America up 4% YoY reflecting  Latin America 1,370 3% 4% 3,811 5% growth in loans and deposit volumes (1)  Asia 1,869 3% 5% 5,392 4% – Asia up 5% YoY driven by improvement in Expenses 1,950 0% 4% 5,709 2% wealth management and cards, partially  Latin America 768 2% 4% 2,162 3% offset by lower retail lending revenues (1)  Asia 1,182 (1)% 4% 3,547 2% • Expenses Operating Margin 1,289 7% 6% 3,494 9% – Operating expenses up 4% YoY driven by Credit Costs 505 4% 4% 1,435 9% investment spending and volume growth, EBT 784 9% 7% 2,059 8% partially offset by efficiency savings Net Income $517 11% 7% $1,347 5% • Credit Costs Key Indicators (in Constant $B, except branches, and as otherwise noted) – NCL rate of 1.63 % vs. 1.57% in 3Q’16 Branches 1,779 (5)% (7)% 1,779 (7)% – Net credit losses of $465MM up 6% YoY RB Average Deposits $124 (0)% 4% $121 6% primarily reflecting volume growth and RB Average Loans 89 1% 0% 86 (1)% seasoning in Latin America Investment AUMs 100 4% 10% 100 10% – Net LLR build of $21 MM in 3Q’17 Cards Average Loans 24 1% 6% 24 5% compared to build of $26MM in 3Q’16 Cards Purchase Sales 25 (1)% 7% 72 6% (2) Active Digital Customers (MM) 6 3% 14% (3) Active Mobile Customers (MM) 3 7% 39% 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 28. (1) Asia GCB includes the results of operations of GCB activities in certain EMEA countries for all periods presented. 5 (2) Users of all online and/or mobile services within the last 90 days through August 2017. For additional information, please refer to Slide 20. (3) Users of all mobile services (mobile apps or via mobile browser) within the last 90 days through August 2017. For additional information, please refer to Slide 20.

Global Consumer Banking – Credit Trends (EOP Loans in Constant $B) NCL 90+ DPD Global Consumer Banking North America 3Q'16 2Q'17 3Q'17 3Q'16 2Q'17 3Q'17 EOP EOP Loans $290.6 $298.8 $300.8 Loans $180.0 $186.4 $187.9 2.63% 2.63% 2.58% 2.42% 2.34% 2.32% 2.26% 2.24% 2.26% 2.20% 2.10% 2.07% 2.05% 2.04% 2.02% 1.87% 0.90% 0.89% 0.85% 0.84% 0.85% 0.86% 0.79% 0.77% 0.81% 0.77% 0.76% 0.75% 0.75% 0.75% 0.73% 0.69% 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 Latin America Asia (1) EOP 3Q'16 2Q'17 3Q'17 EOP 3Q'16 2Q'17 3Q'17 Loans $25.1 $26.4 $26.6 Loans $85.6 $86.0 $86.3 4.78% 4.58% 4.44% 4.36% 4.37% 4.30% 4.20% 4.18% 0.85% 0.78% 0.79% 0.78% 0.78% 0.76% 0.76% 0.74% 1.43% 1.28% 1.25% 1.23% 1.17% 1.17% 1.17% 1.12% 0.42% 0.42% 0.43% 0.42% 0.41% 0.41% 0.41% 0.41% 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 6 Note: (1) Asia GCB includes the results of operations of GCB activities in certain EMEA countries for all periods presented.