C
$60.55
Citigroup
$.38
.63%
Earnings Details
4th Quarter December 2016
Wednesday, January 18, 2017 7:59:01 AM
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Summary

Citigroup Misses

Citigroup (C) reported 4th Quarter December 2016 earnings of $1.14 per share on revenue of $20.3 billion. The consensus earnings estimate was $1.12 per share on revenue of $17.1 billion. The Earnings Whisper number was $1.15 per share. Revenue fell 5.0% compared to the same quarter a year ago.

Citigroup Inc is a financial services holding company. It provides financial products and services, including consumer banking, credit cards, corporate and investment banking, securities brokerage and wealth management.

Results
Reported Earnings
$1.14
Earnings Whisper
$1.15
Consensus Estimate
$1.12
Reported Revenue
$20.29 Bil
Revenue Estimate
$17.11 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Citigroup Reports Fourth Quarter 2016 Earnings Per Share of $1.14

CITIGROUP REVENUES OF $17.0 BILLIONCITICORP REVENUES OF $16.4 BILLION INCREASED 6%(1) VERSUS PRIOR YEAR PERIOD

--CITICORP EFFICIENCY RATIO OF 58% IN 2016

--CITIGROUP NET INTEREST MARGIN OF 2.79%

RETURNED $4.7 BILLION OF CAPITAL TO COMMON SHAREHOLDERS IN THE FOURTH QUARTER AND $10.7 BILLION IN FULL YEAR 2016

REPURCHASED 79 MILLION COMMON SHARES IN THE FOURTH QUARTER AND 196 MILLION IN FULL YEAR 2016

--COMMON EQUITY TIER 1 CAPITAL RATIO OF 12.5%(2)SUPPLEMENTARY LEVERAGE RATIO OF 7.2%(3)

--BOOK VALUE PER SHARE OF $74.26TANGIBLE BOOK VALUE PER SHARE OF $64.57(4)

Citigroup Inc. today reported net income for the fourth quarter 2016 of $3.6 billion, or $1.14 per diluted share, on revenues of $17.0 billion. This compared to net income of $3.3 billion, or $1.02 per diluted share, on revenues of $18.5 billion for the fourth quarter 2015.

Fourth quarter 2015 included CVA/DVA(5) of negative $181 million (negative $114 million after-tax). Excluding CVA/DVA, revenues decreased 9% from the prior year period, driven by the continued wind down of Citi Holdings, partially offset by a 6% increase in Citicorp revenues. Net income of $3.6 billion increased 4%, driven by a 25% increase in Citicorp net income. Earnings per share of $1.14 increased 8% from $1.06 per diluted share in the prior year period, driven by the growth in net income and a 5% reduction in average diluted shares outstanding.

Citi CEO Michael Corbat said, "We had a strong finish to 2016, bringing momentum into this year. We drove revenue growth in our businesses and demonstrated strong expense discipline across the firm. We achieved a full year Citicorp efficiency ratio of 58% as we had targeted, while again increasing our loans and deposits.

"This quarter marks the last time we will report the results of Citi Holdings separately. At its peak, Holdings had over $800 billion in assets, generating sometimes multi-billion dollar losses in a single quarter. Today, Holdings’ $54 billion of assets are only 3% of Citigroup’s balance sheet and, for the tenth quarter in a row, Holdings was profitable.

"Our core businesses are beginning to produce the returns our investors expect and deserve. In 2016, we returned nearly $11 billion in capital to our shareholders. Even with this capital return, we ended the year with a Common Equity Tier 1 Capital ratio of 12.5%, 40 basis points higher than when we started the year, showing the capability of this franchise to consistently generate and return significant amounts of capital," Mr. Corbat concluded.

Citigroup full year 2016 net income was $14.9 billion on revenues of $69.9 billion, compared to net income of $17.2 billion on revenues of $76.4 billion for the full year 2015. Full year 2015 results included CVA/DVA of $254 million ($162 million after-tax). Excluding CVA/DVA, Citigroup revenues decreased 8% and net income decreased 13% compared to the prior year. Citicorp revenues decreased 2% and net income decreased 11% compared to the prior year.

In the discussion throughout the remainder of this press release, Citigroup’s results of operations in the prior year period are presented excluding CVA/DVA, as applicable, for consistency with the current period’s presentation (see note 5 to this release). Percentage comparisons below are calculated for the fourth quarter 2016 versus the fourth quarter 2015, unless otherwise specified.

Citigroup
($ in millions, except per share amounts)
4Q’16
3Q’16
4Q’15
QoQ%
YoY%
2016
2015
%D
Citicorp
16,355
16,883
15,291
(3 )%
7 %
66,023
67,394
(2 )%
Citi Holdings
657
877
3,165
(25 )%
(79 )%
3,852
8,960
(57 )%
Total Revenues
$17,012
$17,760
$18,456
(4 )%
(8 )%
$69,875
$76,354
(8 )%
Adjusted Revenues(a)
$17,012
$17,760
$18,637
(4 )%
(9 )%
$69,875
$76,100
(8 )%
Expenses
$10,120
$10,404
$11,134
(3 )%
(9 )%
$41,416
$43,615
(5 )%
Net Credit Losses
1,696
1,525
1,762
11 %
(4 )%
6,561
7,302
(10 )%
Credit Reserve Build / (Release)(b)
64
176
588
(64 )%
(89 )%
217
(120 )
NM
Provision for Benefits and Claims
32
35
164
(9 )%
(80 )%
204
731
(72 )%
Total Cost of Credit
$1,792
$1,736
$2,514
3 %
(29 )%
$6,982
$7,913
(12 )%
Income from Continuing Operations Before Taxes
$5,100
$5,620
$4,808
(9 )%
6 %
$21,477
$24,826
(13 )%
Provision for Income Taxes
1,509
1,733
1,403
(13 )%
8 %
6,444
7,440
(13 )%
Income from Continuing Operations
$3,591
$3,887
$3,405
(8 )%
5 %
$15,033
$17,386
(14 )%
Net Income (Loss) from Discontinued Operations
(3 )
(30 )
(45 )
90 %
93 %
(58 )
(54 )
(7 )%
Non-Controlling Interest
15
17
25
(12 )%
(40 )%
63
90
(30 )%
Citigroup Net Income
$3,573
$3,840
$3,335
(7 )%
7 %
$14,912
$17,242
(14 )%
Adjusted Net Income(a)
$3,573
$3,840
$3,449
(7 )%
4 %
$14,912
$17,080
(13 )%
Common Equity Tier 1 Capital Ratio
12.5 %
12.6 %
12.1 %
Supplementary Leverage Ratio
7.2 %
7.4 %
7.1 %
Return on Average Common Equity
6.2 %
6.8 %
5.9 %
Book Value per Share
$74.26
$74.51
$69.46
-
7 %
Tangible Book Value per Share
$64.57
$64.71
$60.61
-
7 %

Note: Please refer to the Appendices and Footnotes at the end of this press release for additional information. (a) Excludes CVA / DVA in 4Q’15 and full year 2015. For additional information, please refer to Appendix A. (b) Includes provision for unfunded lending commitments.

Citigroup

Citigroup revenues of $17.0 billion in the fourth quarter 2016 decreased 9%, driven by the absence of net gains on asset sales in Citi Holdings, partially offset by a 6% increase in Citicorp revenues. Excluding the impact of foreign exchange translation(6), Citigroup revenues decreased 7%, driven by a 79% decrease in Citi Holdings, partially offset by an 8% increase in Citicorp.

Citigroup’s net income increased to $3.6 billion in the fourth quarter 2016, primarily driven by the lower operating expenses and cost of credit, partially offset by lower revenues. Citigroup’s effective tax rate was 30% in the current quarter compared to 29% in the fourth quarter 2015.

Citigroup’s operating expenses decreased 9% to $10.1 billion in the fourth quarter 2016. In constant dollars, operating expenses fell 6%, mainly driven by lower expenses in Citi Holdings largely due to divestitures.

Citigroup’s cost of credit in the fourth quarter 2016 was $1.8 billion, a 29% decrease, driven by the absence of significant loan loss reserve builds related to energy exposures in Institutional Clients Group (ICG) as well as lower provision for benefits and claims and a decline in net credit losses.

Citigroup’s allowance for loan losses was $12.1 billion at quarter end, or 1.94% of total loans, compared to $12.6 billion, or 2.06% of total loans, at the end of the prior year period. Total non-accrual assets grew 6% from the prior year period to $5.8 billion. Consumer non-accrual loans declined 14% to $3.2 billion. Corporate non-accrual loans increased 52% to $2.4 billion, primarily related to energy-related loans in ICG, but were unchanged from the prior quarter.

Citigroup’s loans were $624 billion as of quarter end, up 1% from the prior year period, and 3% in constant dollars. In constant dollars, 6% growth in Citicorp loans was partially offset by continued declines in Citi Holdings, driven primarily by continued reductions in the North America mortgage portfolio.

Citigroup’s deposits were $929 billion as of quarter end, up 2%, and up 4% in constant dollars. In constant dollars, Citicorp deposits increased 5%, driven by a 6% increase in ICG deposits and a 3% increase in Global Consumer Banking (GCB) deposits.

Citigroup’s book value per share was $74.26 and tangible book value per share was $64.57, each as of year end 2016 and representing 7% increases over the prior year period. At year end, Citigroup’s Common Equity Tier 1 Capital ratio was 12.5%, up from 12.1% in the prior year period, driven primarily by earnings and a reduction in risk-weighted assets, partially offset by capital return. Citigroup’s Supplementary Leverage Ratio for the fourth quarter 2016 was 7.2%, up from 7.1% in the prior year period, driven by an increase in Tier 1 Capital which more than offset a slight increase in leverage exposure. During the fourth quarter 2016, Citigroup repurchased approximately 79 million common shares and returned a total of $4.7 billion to common shareholders in the form of common share repurchases and dividends. During the full year 2016, Citigroup repurchased approximately 196 million common shares and returned a total of $10.7 billion to common shareholders in the form of common share repurchases and dividends.

Citicorp
($ in millions, except as otherwise noted)
4Q’16
3Q’16
4Q’15
QoQ%
YoY%
2016
2015
%D
Global Consumer Banking
8,033
8,227
7,875
(2 )%
2 %
31,763
32,495
(2 )%
Institutional Clients Group
8,340
8,628
7,309
(3 )%
14 %
33,850
33,991
-
Corporate / Other
(18 )
28
107
NM
NM
410
908
(55 )%
Total Revenues
$16,355
$16,883
$15,291
(3 )%
7 %
$66,023
$67,394
(2 )%
Adjusted Revenues(a)
$16,355
$16,883
$15,477
(3 )%
6 %
$66,023
$67,125
(2 )%
Expenses
$9,461
$9,578
$9,684
(1 )%
(2 )%
$38,245
$38,044
1 %
Net Credit Losses
1,637
1,396
1,501
17 %
9 %
6,128
5,966
3 %
Credit Reserve Build / (Release)(b)
143
298
516
(52 )%
(72 )%
680
358
90 %
Provision for Benefits and Claims
32
25
30
28 %
7 %
105
107
(2 )%
Total Cost of Credit
$1,812
$1,719
$2,047
5 %
(11 )%
$6,913
$6,431
7 %
Net Income
$3,486
$3,766
$2,665
(7 )%
31 %
$14,312
$16,268
(12 )%
Adjusted Net Income(a)
$3,486
$3,766
$2,782
(7 )%
25 %
$14,312
$16,096
(11 )%
Adjusted Revenues(a)
North America
8,131
8,488
7,649
(4 )%
6 %
32,773
32,540
1 %
EMEA
2,653
2,554
2,132
4 %
24 %
10,029
9,826
2 %
Latin America
2,232
2,266
2,331
(2 )%
(4 )%
8,995
9,813
(8 )%
Asia
3,357
3,547
3,258
(5 )%
3 %
13,816
14,038
(2 )%
Corporate / Other
(18 )
28
107
NM
NM
410
908
(55 )%
Adjusted Income from Continuing Operations(a)
North America
1,759
1,930
1,510
(9 )%
16 %
7,034
7,728
(9 )%
EMEA
677
680
231
-
NM
2,476
2,255
10 %
Latin America
514
563
342
(9 )%
50 %
2,150
2,256
(5 )%
Asia
798
887
658
(10 )%
21 %
3,376
3,494
(3 )%
Corporate / Other
(244 )
(247 )
101
1 %
NM
(609 )
496
NM
EOP Assets ($B)
1,738
1,757
1,650
(1 )%
5 %
1,738
1,650
5 %
EOP Loans ($B)
591
599
569
(1 )%
4 %
591
569
4 %
EOP Deposits ($B)
927
934
898
(1 )%
3 %
927
898
3 %

Note: Please refer to the Appendices and Footnotes at the end of this press release for additional information. (a) Excludes CVA / DVA in 4Q’15 and full year 2015. For additional information, please refer to Appendix A. (b) Includes provision for unfunded lending commitments.

Citicorp

Citicorp revenues of $16.4 billion increased 6%, driven by an 11% increase in ICG revenues and a 2% increase in GCB. Corporate/Other revenues were negative $18 million, compared to positive $107 million in the prior year period, due to the absence of the equity contribution from Citi’s stake in China Guangfa Bank, which was divested in the third quarter 2016, as well as gains on asset sales in the prior year period.

Citicorp net income increased to $3.5 billion, from $2.8 billion in the prior year period, primarily driven by the higher revenues as well as lower operating expenses and lower cost of credit.

Citicorp operating expenses decreased 2% to $9.5 billion, as investment spending was more than offset by efficiency savings, lower repositioning costs and a benefit from the impact of foreign exchange translation.

Citicorp cost of credit of $1.8 billion in the fourth quarter 2016 decreased 11% from the prior year period. This decrease was driven by lower loan loss reserve builds, in particular in ICG, partially offset by higher net credit losses in GCB. Citicorp’s consumer loans 90+ days delinquent increased 8% to $2.3 billion, and the 90+ days delinquency ratio increased to 0.79% of loans, from 0.77% in the prior year period.

Citicorp end of period loans of $591 billion increased 4%. In constant dollars, Citicorp end of period loans grew 6%, with 4% growth in corporate loans to $299 billion and 8% growth in consumer loans to $292 billion.

Global Consumer Banking
($ in millions, except as otherwise noted)
4Q’16
3Q’16
4Q’15
QoQ%
YoY%
2016
2015
%D
North America
5,114
5,212
4,870
(2 )%
5 %
19,956
19,718
1 %
Latin America
1,223
1,257
1,361
(3 )%
(10 )%
4,969
5,770
(14 )%
Asia(a)
1,696
1,758
1,644
(4 )%
3 %
6,838
7,007
(2 )%
Total Revenues
$
8,033
$
8,227
$
7,875
(2 )%
2 %
$
31,763
$ 32,495
(2 )%
Expenses
$
4,364
$
4,440
$
4,346
(2 )%
-
$
17,516
$ 17,220
2 %
Net Credit Losses
1,518
1,351
1,405
12 %
8 %
5,612
5,752
(2 )%
Credit Reserve Build / (Release)(b)
158
433
(38 )
(64 )%
NM
710
(390 )
NM
Provision for Benefits and Claims
32
25
30
28 %
7 %
105
107
(2 )%
Total Cost of Credit
$
1,708
$
1,809
$
1,397
(6 )%
22 %
$
6,427
$
5,469
18 %
Net Income
$
1,265
$
1,285
$
1,361
(2 )%
(7 )%
$
5,101
$
6,366
(20 )%
Income from Continuing Operations
North America
843
811
993
4 %
(15 )%
3,356
4,311
(22 )%
Latin America
162
167
152
(3 )%
7 %
669
868
(23 )%
Asia(a)
261
310
217
(16 )%
20 %
1,083
1,197
(10 )%
Key Indicators ($B)
Retail Banking Average Loans
138
142
141
(3 )%
(2 )%
141
141
(1 )%
Retail Banking Average Deposits
303
303
295
-
3 %
300
297
1 %
Investment Sales
19
20
17
(5 )%
8 %
73
88
(17 )%
Cards Average Loans
149
146
132
3 %
14 %
140
131
7 %
Cards Purchase Sales
125
115
96
8 %
30 %
421
355
19 %

Note: Please refer to the Appendices and Footnotes at the end of this press release for additional information. (a) Asia GCB includes the results of operations of GCB activities in certain EMEA countries for all periods presented. (b) Includes provision for unfunded lending commitments.

Global Consumer Banking

GCB revenues of $8.0 billion increased 2% due to a 5% increase in North America GCB revenues. In constant dollars, revenues increased 5%, driven by a 5% increase in North America GCB and a 5% increase in international GCB.

GCB net income decreased 7% to $1.3 billion, as the higher revenues were more than offset by higher cost of credit. Operating expenses were largely flat at $4.4 billion, and increased 3% in constant dollars, driven by the addition of the Costco portfolio, volume growth and continued investments, partially offset by ongoing efficiency savings.

North America GCB revenues of $5.1 billion increased 5%, with higher revenues in Citi-branded cards and flat revenues in Citi retail services partially offset by a decline in retail banking. Citi-branded cards revenues of $2.2 billion increased 15%, reflecting the addition of the Costco portfolio as well as modest organic growth driven by higher volumes. Citi retail services revenues of $1.6 billion were largely flat, as growth in core portfolios was offset by the absence of revenue from portfolio exits and the continued impact of previously-disclosed partnership renewals. Retail banking revenues declined 4% to $1.3 billion, mostly reflecting lower mortgage revenues.

North America GCB net income was $844 million, down 15%, driven by an increase in cost of credit and higher operating expenses, partially offset by the higher revenues. Operating expenses increased 6% to $2.5 billion, primarily driven by the addition of the Costco portfolio, volume growth and continued marketing investments, partially offset by efficiency savings.

North America GCB cost of credit increased 43% to $1.2 billion. The net loan loss reserve build in the fourth quarter 2016 was $113 million, compared to a net loan loss reserve release of $63 million in the prior year period, mostly reflecting a reserve build in cards driven by the ongoing impact of the acquisition of the Costco portfolio and organic volume growth. Net credit losses of $1.1 billion increased 21%, driven by the Costco portfolio acquisition, volume growth and seasoning, and the impact of regulatory changes on collections in the cards businesses.

International GCB revenues decreased 3% to $2.9 billion. In constant dollars, revenues increased 5%. On such basis, revenues in Latin America GCB of $1.2 billion increased 8%, driven by growth in retail loans and deposits, partially offset by lower card revenues. Revenues in Asia GCB of $1.7 billion increased 4%, driven by growth in wealth management and cards revenues.

International GCB net income increased 14% to $421 million. In constant dollars, net income increased 36%, driven by the higher revenue, lower operating expenses and lower credit costs. Operating expenses decreased 6% on a reported basis and were 1% lower versus the prior year period in constant dollars. Credit costs decreased 11% on a reported basis and 1% in constant dollars. On such basis, the net loan loss reserve build was $45 million, compared to $24 million in the prior year period, net credit losses decreased 8% and the net credit loss rate was 1.55% of average loans, improved from 1.62% in the prior year period.

Institutional Clients Group
($ in millions)
4Q’16
3Q’16
4Q’15
QoQ%
YoY%
2016
2015
%D
Treasury & Trade Solutions
2,060
2,039
1,992
1 %
3 %
8,098
7,770
4 %
Investment Banking
1,134
1,086
1,131
4 %
-
4,312
4,567
(6 )%
Private Bank
731
746
691
(2 )%
6 %
2,961
2,862
3 %
Corporate Lending(a)
462
450
432
3 %
7 %
1,756
1,817
(3 )%
Total Banking
4,387
4,321
4,246
2 %
3 %
17,127
17,016
1 %
Fixed Income Markets
3,010
3,466
2,221
(13 )%
36 %
13,029
11,318
15 %
Equity Markets
694
663
603
5 %
15 %
2,851
3,121
(9 )%
Securities Services
533
536
517
(1 )%
3 %
2,162
2,143
1 %
Other
(177 )
(140 )
(78 )
(26 )%
NM
(725 )
(200 )
NM
Total Markets & Securities Services
4,060
4,525
3,263
(10 )%
24 %
17,317
16,382
6 %
Product Revenues(b)
$8,447
$8,846
$7,509
(5 )%
12 %
$34,444
$33,398
3 %
Gain / (Loss) on Loan Hedges
(107 )
(218 )
(14 )
51 %
NM
(594 )
324
NM
Total Revenues(c)
$8,340
$8,628
$7,495
(3 )%
11 %
$33,850
$33,722
-
CVA / DVA (as excluded above)
-
-
(186 )
-
100 %
-
269
(100 )%
Total Revenues
$8,340
$8,628
$7,309
(3 )%
14 %
$33,850
$33,991
-
Expenses
$4,630
$4,680
$4,865
(1 )%
(5 )%
$18,939
$19,074
(1 )%
Net Credit Losses
119
45
96
NM
24 %
516
214
NM
Credit Reserve Build / (Release)(d)
(15 )
(135 )
554
89 %
NM
(30 )
748
NM
Total Cost of Credit
$104
$(90 )
$650
NM
(84 )%
$486
$962
(49 )%
Net Income
$2,470
$2,753
$1,255
(10 )%
97 %
$9,870
$9,478
4 %
Adjusted Net Income(c)
$2,470
$2,753
$1,372
(10 )%
80 %
$9,870
$9,306
6 %
Adjusted Revenues(c)
North America
3,017
3,276
2,779
(8 )%
9 %
12,817
12,822
-
EMEA
2,653
2,554
2,132
4 %
24 %
10,029
9,826
2 %
Latin America
1,009
1,009
970
-
4 %
4,026
4,043
-
Asia
1,661
1,789
1,614
(7 )%
3 %
6,978
7,031
(1 )%
Adjusted Income from Continuing Operations(c)
North America
916
1,119
517
(18 )%
77 %
3,678
3,417
8 %
EMEA
677
680
231
-
NM
2,476
2,255
10 %
Latin America
352
396
190
(11 )%
85 %
1,481
1,388
7 %
Asia
537
577
441
(7 )%
22 %
2,293
2,297
-

Note: Please refer to the Appendices and Footnotes at the end of this press release for additional information. (a) Excludes gain / (loss) on hedges related to accrual loans. For additional information, please refer to Footnote 7. (b) Excludes CVA / DVA in 4Q’15 and full year 2015 as well as gain / (loss) on hedges related to accrual loans in all periods. (c) Excludes CVA / DVA in 4Q’15 and full year 2015. For additional information, please refer to Appendix A. (d) Includes provision for unfunded lending commitments.

Institutional Clients Group

ICG revenues of $8.3 billion increased 11%, driven by broad momentum across the franchise including a 24% increase in Markets and Securities Services revenues.

Banking revenuesof $4.3 billion increased 1% (including gain / (loss) on loan hedges)(7). Excluding gain / (loss) on loan hedges in Corporate Lending, Banking revenues of $4.4 billion increased 3%. Treasury and Trade Solutions (TTS) revenues of $2.1 billion increased 3%. In constant dollars, TTS revenues grew 6%, reflecting continued growth in transaction volumes. Investment Banking revenues of $1.1 billion were approximately unchanged versus the prior year period. Advisory revenues decreased 2% to $296 million, debt underwriting revenues increased 4% to $648 million, and equity underwriting fell 8% to $190 million, reflecting lower industry-wide underwriting activity during the current quarter. Private Bank revenues increased 6% to $731 million, driven by higher loan balances and higher spreads. Corporate Lending revenues of $462 million increased 7% (excluding gain / (loss) on loan hedges) reflecting the impact of loan sale activity in the prior year period.

Markets and Securities Services revenues of $4.1 billion increased 24%. Fixed Income Markets revenues of $3.0 billion in the fourth quarter 2016 increased 36%, reflecting increased client activity and improved trading conditions in spread products and rates and currencies. Equity Markets revenues of $694 million increased 15%, driven by improved performance, particularly in derivatives. Securities Services revenues of $533 million increased 3%, as increased client activity, higher deposit volumes and improved spreads more than offset the impact of divestitures.

ICG net income of $2.5 billion increased 80%, driven by the higher revenues, lower cost of credit and lower operating expenses. ICG operating expenses decreased 5% to $4.6 billion, driven by efficiency savings, lower repositioning costs and a benefit from foreign exchange translation. ICG cost of credit was $104 million, compared to $650 million in the prior year period. ICG cost of credit included net credit losses of $119 million ($96 million in the prior year period) and a net loan loss reserve release of $15 million (net loan loss reserve build of $554 million in the prior year period). The improvement in cost of credit largely reflected the absence of significant reserve builds for energy-related exposures as well as an improvement in macroeconomic conditions relative to the prior year period.

ICG average loans grew 3% to $303 billion while end of period deposits increased 4% to $610 billion. In constant dollars, average loans increased 4%, while end of period deposits increased 6%.

Citi Holdings
($ in millions, except as otherwise noted)
4Q’16
3Q’16
4Q’15
QoQ%
YoY%
2016
2015
%D
Total Revenues
$657
$877
$3,165
(25 )%
(79 )%
$3,852
$8,960
(57 )%
Adjusted Revenues(a)
$657
$877
$3,160
(25 )%
(79 )%
$3,852
$8,975
(57 )%
Expenses
$659
$826
$1,450
(20 )%
(55 )%
$3,171
$5,571
(43 )%
Net Credit Losses
59
129
261
(54 )%
(77 )%
433
1,336
(68 )%
Credit Reserve Build / (Release)(b)
(79 )
(122 )
72
35 %
NM
(463 )
(478 )
3 %
Provision for Benefits and Claims
-
10
134
(100 )%
(100 )%
99
624
(84 )%
Total Cost of Credit
$(20 )
$17
$467
NM
NM
$69
$1,482
(95 )%
Net Income
$87
$74
$670
18 %
(87 )%
$600
$974
(38 )%
Adjusted Net Income(a)
$87
$74
$667
18 %
(87 )%
$600
$984
(39 )%
EOP Assets ($B)
54
61
81
(11 )%
(33 )%
54
81
(33 )%
EOP Loans ($B)
33
39
49
(15 )%
(32 )%
33
49
(32 )%
EOP Deposits ($B)
2
6
10
(63 )%
(79 )%
2
10
(79 )%

Note: Please refer to the Appendices and Footnotes at the end of this press release for additional information. (a) Excludes CVA / DVA in 4Q’15 and full year 2015. For additional information, please refer to Appendix A. (b) Includes provision for unfunded lending commitments.

Citi Holdings

Citi Holdings revenues of $657 million decreased 79% from the prior year period, mainly reflecting the absence of net gains from asset sales. As of the end of the fourth quarter 2016, Citi Holdings assets were $54 billion, 33% below the prior year period and 11% below the prior quarter, primarily reflecting continued asset sales. As of January 18, 2017, Citigroup had signed agreements to reduce Citi Holdings assets by an additional $9 billion.

Citi Holdings net income was $87 million, compared to $667 million in the prior year period, reflecting the lower revenue, partially offset by lower operating expenses and lower cost of credit. Citi Holdings operating expenses declined 55% to $659 million, primarily driven by the ongoing decline in assets and lower legal and repositioning costs.

Citi Holdings cost of credit of negative $20 million compared to $467 million in the prior year period. Net credit losses declined 77% to $59 million, reflecting the impact of ongoing divestiture activity as well as continued improvement in the North America mortgage portfolio, and the provision for benefits and claims declined by $134 million to zero reflecting lower insurance-related assets. The net loan loss reserve release was $79 million, compared to a build of $72 million in the prior year period.

Citi Holdings allowance for credit losses was $1.3 billion at the end of the fourth quarter 2016, or 4.0% of loans, compared to $2.3 billion, or 4.7% of loans, in the prior year period. 90+ days delinquent consumer loans in Citi Holdings decreased 10% to $834 million, or 2.6% of loans.

Citicorp Results by Region(a)
Revenues
Income from Continuing Ops.
($ in millions)
4Q’16
3Q’16
4Q’15
4Q’16
3Q’16
4Q’15
North America
Global Consumer Banking
5,114
5,212
4,870
843
811
993
Institutional Clients Group
3,017
3,276
2,779
916
1,119
517
Total North America
$8,131
$8,488
$7,649
$1,759
$1,930
$1,510
EMEA (Institutional Clients Group only)
$2,653
$2,554
$2,132
$677
$680
$231
Latin America
Global Consumer Banking
1,223
1,257
1,361
162
167
152
Institutional Clients Group
1,009
1,009
970
352
396
190
Total Latin America
$2,232
$2,266
$2,331
$514
$563
$342
Asia
Global Consumer Banking(b)
1,696
1,758
1,644
261
310
217
Institutional Clients Group
1,661
1,789
1,614
537
577
441
Total Asia
$3,357
$3,547
$3,258
$798
$887
$658
Corporate / Other
$(18 )
$28
$107
$(244 )
$(247 )
$101
Citicorp
$16,355
$16,883
$15,477
$3,504
$3,813
$2,842

Note: Totals may not sum due to rounding. Please refer to the Appendices and Footnotes at the end of this press release for additional information. (a) Excludes CVA / DVA in 4Q’15. For additional information, please refer to Appendix A. (b) Asia GCB includes the results of operations of GCB activities in certain EMEA countries for all periods presented.

Citicorp Results by Region(a)
Revenues
Income from Continuing Ops.
($ in millions)
2016
2015
2016
2015
North America
Global Consumer Banking
19,956
19,718
3,356
4,311
Institutional Clients Group
12,817
12,822
3,678
3,417
Total North America
$32,773
$32,540
$7,034
$7,728
EMEA (Institutional Clients Group only)
$10,029
$9,826
$2,476
$2,255
Latin America
Global Consumer Banking
4,969
5,770
669
868
Institutional Clients Group
4,026
4,043
1,481
1,388
Total Latin America
$8,995
$9,813
$2,150
$2,256
Asia
Global Consumer Banking(b)
6,838
7,007
1,083
1,197
Institutional Clients Group
6,978
7,031
2,293
2,297
Total Asia
$13,816
$14,038
$3,376
$3,494
Corporate / Other
$410
$908
$(609 )
$496
Citicorp
$66,023
$67,125
$14,427
$16,229

Note: Totals may not sum due to rounding. Please refer to the Appendices and Footnotes at the end of this press release for additional information. (a) Excludes CVA / DVA in full year 2015. For additional information, please refer to Appendix A. (b) Asia GCB includes the results of operations of GCB activities in certain EMEA countries for all periods presented.

Citigroup will host a conference call today at 11:00 AM (ET). A live webcast of the presentation, as well as financial results and presentation materials, will be available at http://www.citigroup.com/citi/investor. Dial-in numbers for the conference call are as follows: (866) 516-9582 in the U.S. and Canada; (973) 409-9210 outside of the U.S. and Canada. The conference code for both numbers is 31487788.

Citigroup, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citigroup provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi

Additional financial, statistical, and business-related information, as well as business and segment trends, is included in a Quarterly Financial Data Supplement. Both this earnings release and Citigroup’s Fourth Quarter 2016 Quarterly Financial Data Supplement are available on Citigroup’s website at www.citigroup.com.

Certain statements in this release are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results and capital and other financial condition may differ materially from those included in these statements due to a variety of factors, including the precautionary statements included in this release and those contained in Citigroup’s filings with the U.S. Securities and Exchange Commission, including without limitation the "Risk Factors" section of Citigroup’s 2015 Annual Report on Form 10-K. Any forward-looking statements made by or on behalf of Citigroup speak only as to the date they are made, and Citigroup does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

Appendix A
Citigroup
4Q’16
3Q’16
4Q’15
2016
2015
($ in millions, except per share amounts)
Reported Revenues (GAAP)
$17,012
$17,760
$18,456
$69,875
$76,354
Impact of CVA / DVA
-
-
(181 )
-
254
Adjusted Revenues
$17,012
$17,760
$18,637
$69,875
$76,100
Impact of FX Translation
-
(194 )
(366 )
-
(1,729 )
Adjusted Revenues in Constant Dollars
$17,012
$17,566
$18,271
$69,875
$74,371
Reported Net Income (GAAP)
$3,573
$3,840
$3,335
$14,912
$17,242
Impact of CVA / DVA
-
-
(114 )
-
162
Adjusted Net Income
$3,573
$3,840
$3,449
$14,912
$17,080
Preferred Dividends
320
225
265
1,077
769
Adjusted Net Income to Common
$3,253
$3,615
$3,184
$13,835
$16,311
Reported EPS (GAAP)
$1.14
$1.24
$1.02
$4.72
$5.40
Impact of CVA / DVA
-
-
(0.04 )
-
0.05
Adjusted EPS
$1.14
$1.24
$1.06
$4.72
$5.35
Average Assets ($B)
$1,820
$1,830
$1,784
$1,809
$1,824
Adjusted ROA
0.78 %
0.83 %
0.77 %
0.82 %
0.94 %
Average TCE
$181,709
$184,492
$178,981
$182,135
$176,505
Adjusted RoTCE
7.1 %
7.8 %
7.1 %
7.6 %
9.2 %
Note: Totals may not sum due to rounding.
Citicorp
4Q’16
3Q’16
4Q’15
2016
2015
($ in millions)
Reported Revenues (GAAP)
$16,355
$16,883
$15,291
$66,023
$67,394
Impact of CVA / DVA
-
-
(186 )
-
269
Adjusted Revenues
$16,355
$16,883
$15,477
$66,023
$67,125
Impact of FX Translation
-
(184 )
(349 )
-
(1,589 )
Adjusted Revenues in Constant Dollars
$16,355
$16,699
$15,128
$66,023
$65,536
Reported Net Income (GAAP)
$3,486
$3,766
$2,665
$14,312
$16,268
Impact of CVA / DVA
-
-
(117 )
-
172
Adjusted Net Income
$3,486
$3,766
$2,782
$14,312
$16,096
Note: Totals may not sum due to rounding.
Institutional Clients Group
4Q’16
3Q’16
4Q’15
2016
2015
($ in millions)
Reported Revenues (GAAP)
$8,340
$8,628
$7,309
$33,850
$33,991
Impact of CVA / DVA
-
-
(186 )
-
269
Adjusted Revenues
$8,340
$8,628
$7,495
$33,850
$33,722
Reported Net Income (GAAP)
$2,470
$2,753
$1,255
$9,870
$9,478
Impact of CVA / DVA
-
-
(117 )
-
172
Adjusted Net Income
$2,470
$2,753
$1,372
$9,870
$9,306
Note: Totals may not sum due to rounding.
Citi Holdings
4Q’16
3Q’16
4Q’15
2016
2015
($ in millions)
Reported Revenues (GAAP)
$657
$877
$3,165
$3,852
$8,960
Impact of CVA / DVA
-
-
5
-
(15 )
Adjusted Revenues
$657
$877
$3,160
$3,852
$8,975
Impact of FX Translation
-
(10 )
(18 )
-
(139 )
Adjusted Revenues in Constant Dollars
$657
$867
$3,142
$3,852
$8,836
Reported Net Income (GAAP)
$87
$74
$670
$600
$974
Impact of CVA / DVA
-
-
3
-
(10 )
Adjusted Net Income
$87
$74
$667
$600
$984
Note: Totals may not sum due to rounding.
Appendix B
Citigroup
4Q’16
3Q’16
4Q’15
2016
2015
($ in billions)
Reported EOP Loans
$624
$638
$618
$624
$618
Impact of FX Translation
-
(9 )
(9 )
-
(9 )
EOP Loans in Constant Dollars
$624
$629
$609
$624
$609
Reported EOP Deposits
$929
$940
$908
$929
$908
Impact of FX Translation
-
(16 )
(15 )
-
(15 )
EOP Deposits in Constant Dollars
$929
$925
$893
$929
$893
Note: Totals may not sum due to rounding.
Citicorp
4Q’16
3Q’16
4Q’15
2016
2015
($ in billions)
Reported EOP Loans
$591
$599
$569
$591
$569
Impact of FX Translation
-
(9 )
(9 )
-
(9 )
EOP Loans in Constant Dollars
$591
$591
$560
$591
$560
Reported EOP Deposits
$927
$934
$898
$927
$898
Impact of FX Translation
-
(16 )
(15 )
-
(15 )
EOP Deposits in Constant Dollars
$927
$919
$883
$927
$883
Note: Totals may not sum due to rounding.
Global Consumer Banking
4Q’16
3Q’16
4Q’15
2016
2015
($ in billions)
Reported EOP Loans
$292
$290
$277
$292
$277
Impact of FX Translation
-
(5 )
(5 )
-
(5 )
EOP Loans in Constant Dollars
$292
$284
$272
$292
$272
Reported EOP Deposits
$301
$307
$298
$301
$298
Impact of FX Translation
-
(5 )
(6 )
-
(6 )
EOP Deposits in Constant Dollars
$301
$302
$292
$301
$292
Note: Totals may not sum due to rounding.
Institutional Clients Group
4Q’16
3Q’16
4Q’15
2016
2015
($ in billions)
Reported Average Loans
$303
$306
$294
$302
$288
Impact of FX Translation
-
(3 )
(4 )
-
(4 )
Average Loans in Constant Dollars
$303
$303
$290
$302
$284
Reported EOP Deposits
$610
$617
$588
$610
$588
Impact of FX Translation
-
(11 )
(9 )
-
(9 )
EOP Deposits in Constant Dollars
$610
$606
$579
$610
$579
Note: Totals may not sum due to rounding.
Appendix B (Cont.)
International Consumer Banking
4Q’16
3Q’16
4Q’15
2016
2015
($ in millions)
Reported Revenues
$2,919
$3,015
$3,005
$11,807
$12,777
Impact of FX Translation
-
(93 )
(234 )
-
(1,003 )
Revenues in Constant Dollars
$2,919
$2,922
$2,771
$11,807
$11,774
Reported Expenses
$1,822
$1,840
$1,941
$7,436
$7,839
Impact of FX Translation
-
(51 )
(109 )
-
(465 )
Expenses in Constant Dollars
$1,822
$1,789
$1,832
$7,436
$7,374
Reported Credit Costs
$479
$465
$538
$1,815
$2,010
Impact of FX Translation
-
(18 )
(53 )
-
(213 )
Credit Costs in Constant Dollars
$479
$447
$485
$1,815
$1,797
Reported Net Income
$421
$474
$369
$1,743
$2,058
Impact of FX Translation
-
(17 )
(60 )
-
(242 )
Net Income in Constant Dollars
$421
$457
$309
$1,743
$1,816
Note: Totals may not sum due to rounding.
Latin America Consumer Banking
4Q’16
3Q’16
4Q’15
2016
2015
($ in millions)
Reported Revenues
$1,223
$1,257
$1,361
$4,969
$5,770
Impact of FX Translation
-
(59 )
(227 )
-
(873 )
Revenues in Constant Dollars
$1,223
$1,198
$1,134
$4,969
$4,897
Reported Expenses
$691
$713
$824
$2,850
$3,262
Impact of FX Translation
-
(27 )
(100 )
-
(360 )
Expenses in Constant Dollars
$691
$686
$724
$2,850
$2,902
Note: Totals may not sum due to rounding.
Asia Consumer Banking(1)
4Q’16
3Q’16
4Q’15
2016
2015
($ in millions)
Reported Revenues
$1,696
$1,758
$1,644
$6,838
$7,007
Impact of FX Translation
-
(34 )
(7 )
-
(130 )
Revenues in Constant Dollars
$1,696
$1,724
$1,637
$6,838
$6,877
Reported Expenses
$1,131
$1,127
$1,117
$4,586
$4,577
Impact of FX Translation
-
(24 )
(9 )
-
(105 )
Expenses in Constant Dollars
$1,131
$1,103
$1,108
$4,586
$4,472
Note: Totals may not sum due to rounding.
(1) Asia GCB includes the results of operations in EMEA GCB for all
periods presented.
Treasury and Trade Solutions
4Q’16
3Q’16
4Q’15
2016
2015
($ in millions)
Reported Revenues
$2,060
$2,039
$1,992
$8,098
$7,770
Impact of FX Translation
-
(16 )
(48 )
-
(256 )
Revenues in Constant Dollars
$2,060
$2,023
$1,944
$8,098
$7,514
Note: Totals may not sum due to rounding.
Appendix C
($ in millions)
12/31/2016(1)
9/30/2016
12/31/2015
Citigroup Common Stockholders’ Equity(2)
$206,051
$212,506
$205,286
Add: Qualifying noncontrolling interests
129
140
145
Regulatory Capital Adjustments and Deductions:
Less:
(560)
(232)
(617)
Accumulated net unrealized losses on cash flow hedges, net of tax(3)
(61)
335
441
Cumulative unrealized net gain (loss) related to changes in fair
value of financial liabilities attributable to own
creditworthiness, net of tax(4)
Intangible Assets:
20,880
21,763
21,980
Goodwill, net of related deferred tax liabilities (DTLs)(5)
4,910
5,177
3,586
Identifiable intangible assets other than mortgage servicing
rights (MSRs), net of related DTLs
857
891
794
Defined benefit pension plan net assets
21,174
22,503
23,659
Deferred tax assets (DTAs) arising from net operating loss,
foreign tax credit and general business credit carry-forwards
9,452
7,077
8,723
Excess over 10% / 15% limitations for other DTAs, certain common
stock investments and MSRs(6)
Common Equity Tier 1 Capital (CET1)
$149,528
$155,132
$146,865
Risk-Weighted Assets (RWA)
$1,192,096
$1,228,283
$1,216,277
Common Equity Tier 1 Capital Ratio (CET1 / RWA)
12.5%
12.6%
12.1%
Note:
Citi’s Common Equity Tier 1 Capital ratio and related components
reflect full implementation of the U.S. Basel III rules.
Risk-weighted assets are based on the Basel III Advanced Approaches
for determining total risk-weighted assets.
(1)
Preliminary.
(2)
Excludes issuance costs related to outstanding preferred stock in
accordance with Federal Reserve Board regulatory reporting
requirements.
(3)
Common Equity Tier 1 Capital is adjusted for accumulated net
unrealized gains (losses) on cash flow hedges included in
accumulated other comprehensive income that relate to the hedging of
items not recognized at fair value on the balance sheet.
(4)
The cumulative impact of changes in Citigroup’s own creditworthiness
in valuing liabilities for which the fair value option has been
elected and own-credit valuation adjustments on derivatives are
excluded from Common Equity Tier 1 Capital, in accordance with the
U.S. Basel III rules.
(5)
Includes goodwill "embedded" in the valuation of significant common
stock investments in unconsolidated financial institutions.
(6)
Assets subject to the 10% / 15% limitations include MSRs, DTAs
arising from temporary differences and significant common stock
investments in unconsolidated financial institutions. For all
periods presented, the deduction related only to DTAs arising from
temporary differences that exceeded the 10% limitation.
Appendix D
($ in millions)
12/31/2016(1)
9/30/2016
12/31/2015
Common Equity Tier 1 Capital (CET1)
$149,528
$155,132
$146,865
Additional Tier 1 Capital (AT1)(2)
19,837
19,628
17,171
Total Tier 1 Capital (T1C) (CET1 + AT1)
$169,365
$174,760
$164,036
Total Leverage Exposure (TLE)
$2,345,442
$2,360,520
$2,317,849
Supplementary Leverage Ratio (T1C / TLE)
7.2%
7.4%
7.1%
Note:
Citi’s Supplementary Leverage Ratio and related components reflect
full implementation of the U.S. Basel III rules.
(1)
Preliminary.
(2)
Additional Tier 1 Capital primarily includes qualifying
noncumulative perpetual preferred stock and qualifying trust
preferred securities.
Appendix E
($ in millions, except per share amounts)
12/31/2016(1)
9/30/2016
12/31/2015
Total Citigroup Stockholders’ Equity
$225,120
$231,575
$221,857
Less: Preferred Stock
19,253
19,253
16,718
Common Equity
$205,867
$212,322
$205,139
Less:
Goodwill
21,659
22,539
22,349
Intangible Assets (other than MSRs)
5,114
5,358
3,721
Goodwill and Intangible Assets (other than MSRs) Related to Assets
72
30
68
Held-for-Sale
Tangible Common Equity (TCE)
$179,022
$184,395
$179,001
Common Shares Outstanding (CSO)
2,772
2,850
2,953
Tangible Book Value Per Share (TCE / CSO)
$64.57
$64.71
$60.61
(1) Preliminary.

_________________________________________

(1) Excludes CVA/DVA in the fourth quarter of 2015. For more information, please refer to Appendix A and Footnote 5.

(2) Preliminary. Citigroup’s Common Equity Tier 1 (CET1) Capital ratio, which reflects full implementation of the U.S. Basel III rules, is a non-GAAP financial measure. For the composition of Citigroup’s CET1 Capital and ratio, see Appendix C.

(3) Preliminary. Citigroup’s Supplementary Leverage Ratio (SLR), which reflects full implementation of the U.S. Basel III rules, is a non-GAAP financial measure. For the composition of Citigroup’s SLR, see Appendix D.

(4) Preliminary. Citigroup’s tangible book value per share is a non-GAAP financial measure. For a reconciliation of this measure to reported results, see Appendix E.

(5) Credit Valuation Adjustments (CVA) on derivatives (counterparty and own-credit), net of hedges; Funding Valuation Adjustments (FVA) on derivatives; and Debt Valuation Adjustments (DVA) on Citigroup’s fair value option liabilities (collectively referred to as CVA/DVA). Effective January 1, 2016, Citigroup early adopted on a prospective basis the amendment in ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, related to the presentation of DVA on fair value option liabilities. Accordingly, beginning in the first quarter 2016, the portion of the change in fair value of these liabilities related to changes in Citigroup’s own credit spreads (DVA) are reflected as a component of Accumulated Other Comprehensive Income (AOCI); previously these amounts were recognized in Citigroup’s revenues and net income. In this release, results for the fourth quarter 2015 and full year 2015 exclude the impact of CVA/DVA, as applicable, for consistency with the current period’s presentation. Citigroup’s results of operations excluding the impact of CVA/DVA in such prior period are non-GAAP financial measures. For a reconciliation of these measures to reported results, see Appendix A.

(6)Results of operations excluding the impact of foreign exchange translation (constant dollar basis) are non-GAAP financial measures. For a reconciliation of these measures to reported results, see Appendices A and B.

(7)Hedges on accrual loans reflect 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 lending revenues. Results of operations excluding the impact of gain/(loss) on loan hedges are non-GAAP financial measures.

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SOURCE: Citigroup Inc.

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