Citigroup Inc. (NYSE: C)
This press release features multimedia. View
the full release here:
http://www.businesswire.com/news/home/20180116005718/en/
NET LOSS OF $18.3 BILLION ($7.15 PER
SHARE)
EXCLUDING THE ESTIMATED IMPACT OF TAX
REFORM7,NET INCOME OF $3.7 BILLION ($1.28 PER
SHARE)
REVENUES OF $17.3 BILLION
RETURNED $6.3 BILLION OF CAPITAL TO
COMMON SHAREHOLDERS IN THE FOURTH QUARTER AND
$17.1 BILLION IN FULL YEAR 2017
REPURCHASED 74 MILLION COMMON SHARES IN
THE FOURTH QUARTER AND 214 MILLION IN FULL YEAR
2017
BOOK VALUE PER SHARE OF $70.85
TANGIBLE BOOK VALUE PER SHARE OF $60.408
Citigroup Inc. today reported a net loss for the fourth quarter
2017 of $18.3 billion, or $7.15 per diluted share, on revenues
of $17.3 billion. This compared to net income of $3.6 billion,
or $1.14 per diluted share, on revenues of $17.0 billion for
the fourth quarter 2016.
The net loss of $18.3 billion, or $7.15 per share, included an
estimated one-time, non-cash charge of $22 billion, or $8.43 per
share, recorded in the tax line within Corporate / Other, related
to the enactment of the Tax Cuts and Jobs Act (Tax Reform)7. This
charge is comprised of $19 billion related to the re-measurement of
Citi’s deferred tax assets (DTA) arising from a lower U.S.
corporate tax rate and shift to a territorial tax regime, and $3
billion related to the deemed repatriation of unremitted earnings
of foreign subsidiaries. Excluding the impact of Tax Reform, net
income of $3.7 billion increased 4% from the prior year period.
Earnings per share increased 12% to $1.28, driven by the higher net
income and a 7% reduction in average diluted shares outstanding.
These results include a combined net benefit of roughly $0.08 per
share, recorded in Corporate / Other, related to discrete items
that resulted in a lower-than-expected tax rate, as well as a
one-time loss in discontinued operations.
Citi CEO Michael Corbat said, “While our fourth quarter results
reflected the impact of a significant non-cash charge due to tax
reform, the impact on our regulatory capital was much less
significant. Tax reform does not change our capital return goals as
we remain committed to returning at least $60 billion of capital in
the current and next two CCAR cycles, subject to regulatory
approval. Tax reform not only leads to higher net income and
increased returns, but also serves to strengthen our capital
generation capabilities going forward.
“We closed this important year with strong operating earnings of
$3.7 billion in the fourth quarter, or $1.28 per share. We grew
loans across both our Consumer and Institutional franchises and we
continue to see good progress across those products and geographies
where we have been investing.
“On an operating basis for the full year, we earned $15.8
billion in net income, which was nearly $1 billion more than 2016.
And our earnings per share were $5.33, up 13% from 2016. We also
made solid progress towards the targets we introduced during
Investor Day in July. Revenue growth and strong expense management
brought us to a full year Efficiency Ratio of 57.7%, an improvement
of over 150 basis points from 2016. And our Return on Tangible
Common Equity including and excluding DTA increased to 8.1% and
9.6%, respectively,” Mr. Corbat concluded.
For the full year 2017, Citigroup reported a net loss of $6.2
billion on revenues of $71.4 billion, compared to net income of
$14.9 billion on revenues of $69.9 billion for the full year 2016.
Excluding the impact of Tax Reform, Citigroup net income of $15.8
billion increased 6% compared to the prior year.
Throughout the remainder of this press release, Citigroup and
Corporate / Other’s net income and Citigroup’s effective tax rate
are presented on a reported and adjusted basis, excluding the
impact of Tax Reform. For additional information on this adjustment
as well as other non-GAAP financial measures used in this release,
see the Appendices and Footnotes to this release. Percentage
comparisons are calculated for the fourth quarter 2017 versus the
fourth quarter 2016, unless otherwise specified.
Citigroup
($ in millions, except as otherwise
noted)
4Q'17 3Q'17 4Q'16
QoQ% YoY% 2017
2016
%∆
Global Consumer Banking 8,412 8,433 7,967
- 6% 32,697 31,519 4%
Institutional Clients Group 8,097 9,231 8,184 (12)% (1)% 35,667
33,227 7% Corporate / Other 746 509
861 47% (13)% 3,085 5,129
(40)%
Total Revenues $ 17,255 $
18,173 $ 17,012 (5)% 1% $
71,449 $ 69,875 2%
Expenses $ 10,083 $ 10,171
$ 10,120 (1)% - $ 41,237
$ 41,416 - Net Credit Losses 1,880
1,777 1,696 6% 11% 7,076 6,561 8% Credit Reserve Build /
(Release)(a) 165 194 64 (15)% NM 266 217 23% Provision for Benefits
and Claims 28 28 32 -
(13)% 109 204 (47)%
Total Cost of
Credit $ 2,073 $ 1,999 $
1,792 4% 16% $ 7,451 $
6,982 7% Income from Continuing Operations
Before Taxes $ 5,099 $ 6,003
$ 5,100 (15)% - $ 22,761
$ 21,477 6% Provision for Income Taxes
23,270 1,866 1,509 NM NM
28,794 6,444 NM
Income (Loss) from
Continuing Operations $ (18,171 ) $
4,137 $ 3,591 NM NM $
(6,033 ) $ 15,033 NM Net Income
(Loss) from Discontinued Operations (109 ) (5 ) (3 ) NM NM (111 )
(58 ) (91)% Non-Controlling Interest 19 (1 )
15 NM 27% 60 63 (5)%
Citigroup Net Income (Loss) $ (18,299 )
$ 4,133 $ 3,573 NM NM
$ (6,204 ) $ 14,912 NM
Adjusted Net Income(b) $ 3,701 $
4,133 $ 3,573 (10)% 4% $
15,796 $ 14,912 6%
Revenues
North America 8,155 8,832 8,008 (8)% 2% 33,898 32,272 5% EMEA 2,393
2,655 2,605 (10)% (8)% 10,692 9,855 8% Latin America 2,329 2,429
2,206 (4)% 6% 9,368 8,899 5% Asia 3,632 3,748 3,332 (3)% 9% 14,406
13,720 5% Corporate / Other 746 509 861 47% (13)% 3,085 5,129 (40)%
Income from Continuing Operations North America 1,756
1,977 1,687 (11)% 4% 7,242 6,733 8% EMEA 424 746 647 (43)% (34)%
2,804 2,365 19% Latin America 485 544 497 (11)% (2)% 2,103 2,087 1%
Asia 885 969 775 (9)% 14% 3,560 3,294 8% Corporate / Other (21,721
) (99 ) (15 ) NM NM (21,742 ) 554 NM
EOP Assets ($B) 1,843
1,889 1,792 (2)% 3% 1,843 1,792 3% EOP Loans ($B) 667 653 624 2% 7%
667 624 7% EOP Deposits ($B) 960 964 929 - 3% 960 929 3%
Common Equity Tier 1 Capital Ratio 12.3 %
13.0 % 12.6 % Supplementary Leverage
Ratio 6.7 % 7.1 % 7.2
% Return on Average Common Equity (36.3
)% 7.3 % 6.2 % Book Value per
Share $ 70.85 $ 78.81 $
74.26 (10)% (5)% Tangible Book Value per
Share $ 60.40 $ 68.55 $
64.57 (12)% (6)%
Note: Please refer to the Appendices and Footnotes at
the end of this press release for additional information.
(a) Includes provision for unfunded
lending commitments.
(b) Excludes the impact of Tax Reform in
4Q'17 and full year 2017. For additional information, please refer
to Appendix A and Footnote 7.
Citigroup
Citigroup revenues of $17.3 billion in the fourth
quarter 2017 increased 1%, driven by 2% aggregate growth in Global
Consumer Banking (GCB) and Institutional Clients Group (ICG),
partially offset by a 13% decrease in Corporate / Other, primarily
due to the continued wind-down of legacy assets.
Citigroup’s operating expenses remained largely unchanged
at $10.1 billion in the fourth quarter 2017, as higher
volume-related expenses and ongoing investments were offset by
efficiency savings and the wind-down of legacy assets.
Citigroup’s cost of credit in the fourth quarter 2017 was
$2.1 billion, a 16% increase, driven by an increase in net
credit losses of $184 million, primarily due to volume growth and
seasoning in cards and an episodic charge-off in ICG, as well as a
higher loan loss reserve build.
Citigroup’s net loss of $18.3 billion in the fourth
quarter 2017, compared to net income of $3.6 billion in the prior
year period, primarily reflected the impact of Tax Reform.
Excluding the impact of Tax Reform, Citigroup’s net income
increased to $3.7 billion, as the higher revenues and the lower tax
rate more than offset the higher cost of credit and the one-time
loss in discontinued operations. Including the impact of Tax
Reform, Citigroup’s effective tax rate in the fourth quarter 2017
was not meaningful. Excluding the impact of Tax Reform, Citigroup’s
effective tax rate in the fourth quarter 2017 was 24.9% compared to
29.6% in the fourth quarter 2016.
Citigroup’s allowance for loan losses was
$12.4 billion at quarter end, or 1.87% of total loans,
compared to $12.1 billion, or 1.94% of total loans, at the end
of the prior year period. Total non-accrual assets declined 17%
from the prior year period to $4.8 billion. Consumer
non-accrual loans declined 15% to $2.7 billion and corporate
non-accrual loans decreased 20% to $1.9 billion.
Citigroup’s end of period loans were $667 billion as
of quarter end, up 7% from the prior year period. Excluding the
impact of foreign exchange translation9, Citigroup’s end of period
loans grew 5%, as 7% aggregate growth in ICG and GCB was partially
offset by the continued wind down of legacy assets in Corporate /
Other.
Citigroup’s end of period deposits were $960 billion
as of quarter end, up 3%. In constant dollars, Citigroup deposits
were up 1%, as a 2% increase in ICG was slightly offset by a
decline in Corporate / Other, and GCB remained largely
unchanged.
Citigroup’s book value per share was $70.85 and tangible
book value per share was $60.40, each at quarter end, representing
5% and 6% decreases, respectively, primarily reflecting the
estimated impact of Tax Reform. At quarter end, Citigroup’s Common
Equity Tier 1 (CET1) Capital ratio was 12.3%, down from 13.0%
sequentially, driven primarily by the return of capital to common
shareholders and the impact of Tax Reform (a reduction of
approximately $6 billion of CET1 Capital or 40 bps to the CET1
Capital ratio). Citigroup’s Supplementary Leverage Ratio for the
fourth quarter 2017 was 6.7%, down from 7.1% sequentially, driven
by a decrease in Tier 1 Capital as well as an increase in Total
Leverage Exposure. During the fourth quarter 2017, Citigroup
repurchased 74 million common shares and returned a total of $6.3
billion to common shareholders in the form of common share
repurchases and dividends.
Global Consumer Banking
($ in millions, except as otherwise
noted)
4Q'17 3Q'17 4Q'16
QoQ% YoY% 2017
2016
%∆
North America 5,180 5,194 5,059 -
2% 20,262 19,759 3% Latin
America 1,341 1,370 1,212 (2)% 11% 5,152 4,922 5% Asia(a)
1,891 1,869 1,696 1% 11% 7,283 6,838 7%
Total Revenues $ 8,412 $ 8,433
$ 7,967 - 6% $ 32,697
$ 31,519 4% Expenses $
4,521 $ 4,410 $ 4,356 3%
4% $ 17,843 $ 17,483 2%
Net Credit Losses 1,640 1,704 1,516 (4)% 8% 6,562 5,610 17%
Credit Reserve Build / (Release)(b) 175 481 161 (64)% 9% 963 711
35% Provision for Benefits and Claims 36 28 32
29% 13% 116 106 9%
Total Cost of Credit
$ 1,851 $ 2,213 $ 1,709
(16)% 8% $ 7,641 $ 6,427
19% Net Income $ 1,335 $
1,172 $ 1,224 14% 9% $
4,634 $ 4,947 (6)%
Income from
Continuing Operations North America 841 655 810 28% 4% 2,793
3,238 (14)% Latin America 160 164 154 (2)% 4% 590 633 (7)% Asia(a)
336 355 261 (5)% 29% 1,260 1,083 16%
Key Indicators
($B) Retail Banking Average Loans 145 144 138 1% 5% 143 140 2%
Retail Banking Average Deposits 307 308 301 (1)% 2% 306 298 3%
Investment AUMs 161 158 138 2% 17% 161 138 17% Cards Average Loans
158 155 149 2% 6% 154 140 10% Cards Purchase Sales 136 125 125 9%
9% 499 421 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 $8.4 billion increased 6%. In
constant dollars, revenues increased 4%, driven by growth across
all regions.
GCB net income increased 9% to $1.3 billion.
In constant dollars, net income increased 8%, as the higher
revenues were partially offset by higher expenses and higher cost
of credit. Operating expenses were $4.5 billion, up 2% in constant
dollars, as higher volume-related expenses and investments were
partially offset by efficiency savings.
North America GCB revenues of $5.2 billion
increased 2%, driven by higher revenues across all businesses.
Retail banking revenues of $1.3 billion increased 7%. Excluding
mortgage, retail banking revenues increased 14%, driven by
continued growth in checking deposits and deposit margin, growth in
investments and loans and increased commercial banking activity.
Citi retail services revenues of $1.6 billion increased 2%,
primarily reflecting continued loan growth. Citi-branded cards
revenues of $2.2 billion increased 1%, as growth in
interest-earning balances slightly outpaced the continued run-off
of non-core portfolios as well as the higher cost to fund growth in
transactor and promotional balances, given higher interest
rates.
North America GCB net income was
$842 million, up 4%, as the higher revenues and a lower tax
rate were partially offset by higher cost of credit. Operating
expenses remained largely unchanged at $2.5 billion, as higher
volume-related expenses and investments were offset by efficiency
savings.
North America GCB cost of credit increased 10% to
$1.3 billion. Net credit losses of $1.2 billion increased 7%,
reflecting volume growth and seasoning. The net loan loss reserve
build in the fourth quarter 2017 was $151 million, compared to
a build of $116 million in the prior year period, also driven
by volume growth and seasoning.
International GCB revenues increased 11% to
$3.2 billion. In constant dollars, revenues increased 7%. On
this basis, revenues in Latin America GCB of $1.3 billion increased
6%. Within Latin America GCB, retail banking revenues grew 7%, with
volume growth across deposits, commercial loans and personal loans,
as well as improved deposit spreads. Latin America GCB card
revenues increased 4% driven by growth in purchase sales and full
rate revolving loans. Revenues in Asia GCB of $1.9 billion
increased 8%. Within Asia GCB, retail banking increased 5%, driven
by improvement in wealth management, partially offset by lower
retail lending revenues. Asia GCB card revenues increased 11%
reflecting growth in average loans and purchase sales, as well as a
modest gain on the sale of a merchant acquiring business.
International GCB net income increased 19% to
$493 million. In constant dollars, net income increased 16%,
as the higher revenues were partially offset by higher expenses and
higher cost of credit. Operating expenses increased 9% on a
reported basis and 5% in constant dollars, versus the prior year
period, primarily driven by higher investments and volume-related
expenses, partially offset by efficiency savings. Credit costs
increased 5% on a reported basis and increased 1% in constant
dollars. In constant dollars, the net loan loss reserve build was
$24 million, compared to $48 million in the prior year period, net
credit losses increased by 6% and the net credit loss rate was
1.59% of average loans, increasing from 1.56% in the prior year
period.
Institutional Clients Group
($ in millions)
4Q'17 3Q'17 4Q'16
QoQ% YoY% 2017
2016
%∆
Treasury & Trade Solutions 2,189 2,144
2,009 2% 9% 8,473 7,897
7% Investment Banking 1,241 1,231 1,131 1% 10% 5,172 4,302 20%
Private Bank 771 785 671 (2)% 15% 3,088 2,709 14% Corporate
Lending(a) 509 502 448 1%
14% 1,922 1,718 12% Total Banking 4,710
4,662 4,259 1% 11% 18,655 16,626 12% Fixed Income Markets 2,413
2,877 2,957 (16)% (18)% 12,127 12,853 (6)% Equity Markets 530 757
685 (30)% (23)% 2,747 2,812 (2)% Securities Services 603 599 529 1%
14% 2,329 2,152 8% Other(b) (180 ) 384
(139 ) NM (29)% (58 ) (622 ) 91% Total Markets &
Securities Services 3,366 4,617
4,032 (27)% (17)% 17,145 17,195
-
Product Revenues(a) $ 8,076
$ 9,279 $ 8,291
(13)% (3)% $ 35,800 $
33,821 6% Gain / (Loss) on Loan Hedges
21 (48 ) (107 ) NM NM (133 )
(594 ) 78%
Total Revenues $ 8,097 $
9,231 $ 8,184 (12)% (1)%
$ 35,667 $ 33,227 7%
Expenses $ 4,705 $ 4,939
$ 4,634 (5)% 2% $ 19,608
$ 18,956 3% Net Credit Losses 225 44
119 NM 89% 365 516 (29)% Credit Reserve Build / (Release)(c)
42 (208 ) (15 ) NM NM (380 ) (30
) NM
Total Cost of Credit $ 267 $
(164 ) $ 104 NM NM
$ (15 ) $ 486 NM
Net Income $ 2,203 $ 3,048
$ 2,369 (28)% (7)% $
11,009 $ 9,467 16%
Revenues
North America 2,975 3,638 2,949 (18)% 1% 13,636 12,513 9% EMEA
2,393 2,655 2,605 (10)% (8)% 10,692 9,855 8% Latin America 988
1,059 994 (7)% (1)% 4,216 3,977 6% Asia 1,741 1,879 1,636 (7)% 6%
7,123 6,882 4%
Income from Continuing Operations
North America 915 1,322 877 (31)% 4% 4,449 3,495 27% EMEA 424 746
647 (43)% (34)% 2,804 2,365 19% Latin America 325 380 343 (14)%
(5)% 1,513 1,454 4% Asia 549 614 514 (11)% 7% 2,300 2,211 4%
Note: Please refer to the Appendices and Footnotes at the end of
this press release for additional information. (a) Excludes gain /
(loss) on credit derivatives as well as the mark-to-market on loans
at fair value. For additional information, please refer to Footnote
10. (b) Includes pre-tax gain of $580 million related to the sale
of a fixed income analytics business in 3Q’17 and full year 2017.
(c) Includes provision for unfunded lending commitments.
Institutional Clients
Group
ICG revenues of $8.1 billion decreased 1%, as
continued momentum in Banking and Securities Services was offset by
a decline in Markets revenues.
Banking revenues of $4.7 billion increased 14%
(including gain / (loss) on loan hedges)10. Excluding gain / (loss)
on loan hedges in Corporate Lending, Banking revenues increased
11%. Treasury and Trade Solutions (TTS) revenues of $2.2 billion
increased 9%, reflecting volume growth and improved deposit
spreads, with balanced growth across both net interest and fee
income. Investment Banking revenues of $1.2 billion were up 10%
versus the prior year period, reflecting continued wallet share
gains for the full year 2017, across debt and equity underwriting
and M&A. Advisory revenues increased 5% to $311 million, equity
underwriting revenues increased 23% to $233 million and debt
underwriting revenues increased 8% to $697 million. Private Bank
revenues increased 15% to $771 million, driven by growth in
clients, loans, investments and deposits, as well as improved
spreads. Corporate Lending revenues of $509 million increased 14%
(excluding gain / (loss) on loan hedges), reflecting lower hedging
costs as well as loan growth.
Markets and Securities Services revenues of $3.4
billion decreased 17%, as a decline in Markets revenues was
partially offset by higher revenues in Securities Services. Fixed
Income Markets revenues of $2.4 billion in the fourth quarter 2017
decreased 18%, reflecting continued low volatility, as well as the
comparison to a more robust trading environment in the prior year
period as a result of the U.S. elections. Equity Markets revenues
of $530 million decreased 23%, primarily driven by an episodic loss
in derivatives of approximately $130 million, related to a single
client event. Securities Services revenues of $603 million
increased 14%, driven by growth in client volumes along with higher
interest revenue.
ICG net income of $2.2 billion decreased 7%,
driven by higher cost of credit, the lower revenues and higher
expenses. ICG operating expenses increased 2% to $4.7 billion,
primarily reflecting the impact of foreign exchange translation.
ICG cost of credit of $267 million in the fourth quarter 2017 was
predominantly driven by the previously-mentioned single client
event.
ICG average loans grew 8% to $328 billion. In
constant dollars, average loans increased 6%.
ICG end of period deposits increased 5% to $640
billion. In constant dollars, end of period deposits grew 2%.
Corporate / Other
($ in millions, except as otherwise
noted)
4Q'17 3Q'17 4Q'16
QoQ% YoY% 2017
2016
%∆
Revenues $ 746 $
509 $ 861 47%
(13)% $ 3,085 $
5,129 (40)% Expenses $
857 $ 822 $ 1,130 4%
(24)% $ 3,786 $ 4,977
(24)% Net Credit Losses 15 29 61 (48)% (75)% 149 435
(66)% Credit Reserve Build / (Release)(a) (52 ) (79 ) (82 ) 34% 37%
(317 ) (464 ) 32% Provision for Benefits and Claims (8 )
- - NM NM (7 ) 98
NM
Total Cost of Credit $ (45 )
$ (50 ) $ (21 )
10% NM $ (175 ) $
69 NM Net Income (Loss) $
(21,837 ) $ (87 ) $
(20 ) NM NM $ (21,847
) $ 498 NM Adjusted Net Income
(Loss)(b) $ 163 $ (87
) $ (20 ) NM NM $
153 $ 498 (69)%
EOP Assets ($B) 75
100 103 (25)% (27)% 75 103 (27)% EOP Loans ($B) 23 25 33 (8)% (31)%
23 33 (31)% EOP Deposits ($B) 13 14 18 (10)% (27)% 13 18 (27)%
(a)
Includes provision for unfunded lending commitments. (b) Excludes
the impact of Tax Reform in 4Q'17 and full year 2017. For
additional information, please refer to Appendix A and Footnote 7.
Corporate / Other
Corporate / Other revenues of $746 million
decreased 13% from the prior year period, driven by the wind-down
of legacy assets. As of the end of the fourth quarter 2017,
Corporate / Other assets were $75 billion, 27% below the prior year
period, primarily reflecting the continued wind-down of legacy
assets.
Corporate / Other’s net loss of
$21.8 billion, compared to a net loss of $20 million in the
prior year period, primarily reflected the impact of Tax Reform. On
an adjusted basis, Corporate / Other net income increased to $163
million, compared to a net loss of $20 million, driven primarily by
episodic tax items which, combined with lower expenses, more than
offset the lower revenues and the one-time loss in discontinued
operations. Corporate / Other operating expenses declined 24% to
$857 million, reflecting the wind-down of legacy assets and
lower legal expenses.
Corporate / Other cost of credit was a benefit of
$45 million compared to a benefit of $21 million in the prior year
period. Net credit losses declined 75% to $15 million, reflecting
the impact of ongoing divestitures and improvements in the legacy
mortgage portfolio. The net loan loss release was $52 million,
mostly related to the legacy mortgage portfolio, as compared to a
release of $82 million in the prior year period.
Citigroup will host a conference call today at 10:00 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 83773629.
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 2017 Quarterly Financial Data
Supplement are available on Citigroup’s website at
www.citigroup.com.
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
Certain statements in this release are “forward-looking
statements” within the meaning of the rules and regulations of the
U.S. Securities and Exchange Commission (SEC). 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 SEC, including
without limitation the “Risk Factors” section of Citigroup’s 2016
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'17 3Q'17 4Q'16
2017 2016 ($ in millions)
Reported
Net Income (Loss) $ (18,299 ) $
4,133 $ 3,573 $ (6,204 )
$ 14,912 Impact of: Tax Reform (22,000 )
- - (22,000 ) -
Adjusted Net Income $ 3,701 $
4,133 $ 3,573 $ 15,796 $
14,912 Less: Preferred Dividends 320
272 320 1,213 1,077
Adjusted Net Income to Common Shareholders $
3,381 $ 3,861 $ 3,253 $
14,583 $ 13,835 Reported EPS
$ (7.15 ) $ 1.42 $
1.14 $ (2.76 ) $ 4.72
Impact of: Tax Reform (8.43 ) - -
(8.09 ) -
Adjusted EPS $
1.28 $ 1.42 $ 1.14 $
5.33 $ 4.72 Common Share Repurchases
5,485 5,490 4,284 14,539 9,451 Common Dividends 840
865 454 2,595
1,214
Total Capital Returned to Common Shareholders
$ 6,325 $ 6,355 $ 4,738
$ 17,134 $ 10,665 Adjusted
Payout Ratio 187 % 165 % 146
% 117 % 77 % Adjusted
Average Common Equity $ 205,747 $
209,764 $ 208,965 Adjusted ROE
6.5 % 7.3 % 6.2 %
Reported TCE $ 155,205 $ 181,256
$ 179,022 $ 155,205 $
179,022 Impact of: Tax Reform (22,000 ) -
- (22,000 ) -
Adjusted
TCE $ 177,205 $ 181,256 $
179,022 $ 177,205 $ 179,022
Adjusted Average TCE $ 179,231 $
182,333 $ 181,709 $ 180,458
$ 182,135 Less: Average net DTAs excluded from CET1
Capital 28,353 28,085 28,532
28,569 29,013
Adjusted
Average TCE, ex. Net DTAs excluded from CET1 Capital $
150,878 $ 154,248 $ 153,177
$ 151,889 $ 153,122 Adjusted
RoTCE 7.5 % 8.4 % 7.1
% 8.1 % 7.6 % Adjusted
RoTCE ex. DTA 8.9 % 9.9 %
8.4 % 9.6 % 9.0 %
Corp / Other 4Q'17 3Q'17 4Q'16
2017 2016 ($ in millions)
Reported Net
Income (Loss) $ (21,837 ) $
(87 ) $ (20 ) $
(21,847 ) $ 498 Impact of: Tax Reform
(22,000 ) - - (22,000 )
-
Adjusted Net Income (Loss) $
163 $ (87 ) $ (20
) $ 153 $ 498 Appendix
B Citigroup 4Q'17 3Q'17
4Q'16 2017 2016 ($ in
billions)
Reported EOP Loans $ 667
$ 653 $ 624 $ 667
$ 624 Impact of FX Translation - 0
12 - 12
EOP Loans in Constant
Dollars $ 667 $ 653 $
637 $ 667 $ 637
Reported EOP Deposits $ 960 $
964 $ 929 $ 960 $
929 Impact of FX Translation - 1
23 - 23
EOP Deposits in Constant Dollars
$ 960 $ 965 $ 953
$ 960 $ 953 Note: Totals may not sum
due to rounding.
Global Consumer Banking
4Q'17 3Q'17 4Q'16 2017 2016
($ in billions)
Reported EOP Loans $
311 $ 301 $ 292 $
311 $ 292 Impact of FX Translation -
0 7 - 7
EOP Loans in Constant
Dollars $ 311 $ 301 $
299 $ 311 $ 299
Reported EOP Deposits $ 307 $
310 $ 300 $ 307 $
300 Impact of FX Translation - (1 ) 6
- 6
EOP Deposits in Constant Dollars $
307 $ 309 $ 306 $
307 $ 306 Note: Totals may not sum due to
rounding.
Institutional Clients Group
4Q'17 3Q'17 4Q'16 2017 2016
($ in billions)
Reported Average Loans $
328 $ 321 $ 304 $
316 $ 303 Impact of FX Translation -
(1 ) 4 - 1
Average Loans in Constant
Dollars $ 328 $ 320 $
308 $ 316 $ 304
Reported EOP Deposits $ 640 $
640 $ 612 $ 640 $
612 Impact of FX Translation - 2
17 - 17
EOP Deposits in Constant Dollars
$ 640 $ 642 $ 629
$ 640 $ 629 Note: Totals may not sum
due to rounding.
Appendix B (Cont.)
International Consumer Banking 4Q'17
3Q'17 4Q'16 2017
2016 ($ in millions)
Reported Revenues
$ 3,232 $ 3,239 $ 2,908
$ 12,435 $ 11,760 Impact of FX
Translation - (78 ) 108 - 66
Revenues in Constant Dollars $ 3,232
$ 3,161 $ 3,016 $ 12,435
$ 11,826 Reported Expenses $
1,974 $ 1,950 $ 1,819 $
7,683 $ 7,425 Impact of FX Translation
- (30 ) 68 - 54
Expenses in
Constant Dollars $ 1,974 $ 1,920
$ 1,887 $ 7,683 $ 7,479
Reported Credit Costs $ 504 $
505 $ 479 $ 1,939 $
1,815 Impact of FX Translation - (22 )
21 - (1 )
Credit Costs in Constant Dollars
$ 504 $ 483 $ 500
$ 1,939 $ 1,814 Reported Net
Income $ 493 $ 517 $
413 $ 1,840 $ 1,707 Impact of FX
Translation - (14 ) 13 - 7
Net Income in Constant Dollars $ 493
$ 503 $ 426 $ 1,840
$ 1,714 Note: Totals may not sum due to rounding.
Latin America Consumer Banking 4Q'17
3Q'17 4Q'16 2017 2016 ($ in
millions)
Reported Revenues $ 1,341
$ 1,370 $ 1,212 $ 5,152
$ 4,922 Impact of FX Translation - (85
) 49 - (45 )
Revenues in Constant
Dollars $ 1,341 $ 1,285 $
1,261 $ 5,152 $ 4,877
Reported Retail Banking Revenues $ 955
$ 976 $ 857 $ 3,690
$ 3,447 Impact of FX Translation - (61
) 34 - (32 )
Retail Banking Revenues in
Constant Dollars $ 955 $ 915
$ 891 $ 3,690 $ 3,415
Reported Branded Cards Revenues $ 386
$ 394 $ 355 $ 1,462
$ 1,475 Impact of FX Translation - (24
) 15 - (13 )
Branded Cards Revenues in
Constant Dollars $ 386 $ 370
$ 370 $ 1,462 $ 1,462
Reported Expenses $ 758 $
768 $ 688 $ 2,920 $
2,838 Impact of FX Translation - (38 )
24 - (21 )
Expenses in Constant Dollars
$ 758 $ 730 $ 712
$ 2,920 $ 2,817 Note: Totals may not
sum due to rounding.
Asia Consumer
Banking(1) 4Q'17 3Q'17 4Q'16
2017 2016 ($ in millions)
Reported
Revenues $ 1,891 $ 1,869 $
1,696 $ 7,283 $ 6,838 Impact of
FX Translation - 7 59 -
111
Revenues in Constant Dollars $
1,891 $ 1,876 $ 1,755 $
7,283 $ 6,949 Reported Retail
Banking Revenues $ 1,129 $ 1,154
$ 1,037 $ 4,431 $ 4,247
Impact of FX Translation - 5 34
- 70
Retail Banking Revenues in Constant
Dollars $ 1,129 $ 1,159 $
1,071 $ 4,431 $ 4,317
Reported Branded Cards Revenues $ 762 $
715 $ 659 $ 2,852 $
2,591 Impact of FX Translation - 2
25 - 41
Branded Cards Revenues in
Constant Dollars $ 762 $ 717
$ 684 $ 2,852 $ 2,632
Reported Expenses $ 1,216 $
1,182 $ 1,131 $ 4,763 $
4,587 Impact of FX Translation - 8
44 - 75
Expenses in Constant
Dollars $ 1,216 $ 1,190 $
1,175 $ 4,763 $ 4,662 Note:
Totals may not sum due to rounding. (1) Asia GCB includes the
results of operations in EMEA GCB for all periods presented.
Appendix C ($ in millions)
12/31/17(1)
9/30/2017 12/31/2016 Citigroup
Common Stockholders' Equity(2) $ 182,265
$ 208,565 $ 206,051 Add: Qualifying
noncontrolling interests 153 144 129
Regulatory Capital
Adjustments and Deductions: Less: Accumulated net unrealized
losses on cash flow hedges, net of tax(3) (584 ) (437 ) (560 )
Cumulative unrealized net gain (loss)
related to changes in fair value of financial liabilities
attributable to own creditworthiness, net of tax(4)
(582
) (416 ) (61 ) Intangible Assets: Goodwill, net of related deferred
tax liabilities (DTLs)(5) 22,231 21,532 20,858
Identifiable intangible assets other than
mortgage servicing rights (MSRs), net of related DTLs
4,265 4,410 4,876 Defined benefit pension plan net assets 896 720
857
Deferred tax assets (DTAs) arising from
net operating loss, foreign tax credit and general business credit
carry-forwards
13,382 20,068 21,337
Excess over 10% / 15% limitations for
other DTAs, certain common stock investments, and MSRs(6)
- 9,298 9,357
Common Equity Tier 1 Capital (CET1) $
142,810 $ 153,534
$ 149,516
Risk-Weighted Assets (RWA) $
1,160,282 $ 1,182,918
$ 1,189,680
Common Equity Tier 1 Capital Ratio (CET1 /
RWA) 12.3 %
13.0 % 12.6 % Note:
Citi's reportable CET1 Capital ratios were derived under the
U.S. Basel III Standardized Approach framework as of December 31,
2017 and September 30, 2017, and the U.S. Basel III Advanced
Approaches framework as of December 31, 2016. This reflects the
lower of the CET1 Capital ratios under both the Standardized
Approach and the Advanced Approaches under the Collins Amendment.
Citigroup's risk-based capital ratios, which reflect full
implementation of the U.S. Basel III rules, are non-GAAP financial
measures. (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 10% / 15% limitations include MSRs, DTAs arising from
temporary differences and significant common stock investments in
unconsolidated financial institutions. For periods presented prior
to December 31, 2017, the deduction related only to DTAs arising
from temporary differences that exceeded the 10% limitation.
Appendix D ($ in millions)
12/31/2017(1)
9/30/2017 12/31/2016 Common Equity
Tier 1 Capital (CET1) $ 142,810 $
153,534 $ 149,516 Additional Tier 1
Capital (AT1)(2) 19,509 19,315
19,874
Total Tier 1 Capital (T1C) (CET1 + AT1) $
162,319 $ 172,849
$ 169,390
Total Leverage Exposure (TLE) $
2,433,623 $ 2,430,582
$ 2,345,391
Supplementary Leverage Ratio (T1C /
TLE) 6.7 % 7.1
% 7.2 % 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 ($ and shares in millions, except per
share amounts)
12/31/2017(1)
9/30/2017 12/31/2016 Total Citigroup
Stockholders' Equity $ 201,334 $
227,634 $ 225,120 Less: Preferred Stock
19,253 19,253 19,253
Common Stockholders'
Equity $ 182,081 $ 208,381 $
205,867 Less: Goodwill 22,256 22,345 21,659 Intangible
Assets (other than MSRs) 4,588 4,732 5,114 Goodwill and
Identifiable Intangible Assets (other than MSRs) Related to Assets
Held-for-Sale 32 48
72
Tangible Common Equity (TCE) $
155,205 $ 181,256
$ 179,022
Common Shares Outstanding (CSO)
2,570 2,644
2,772
Tangible Book Value Per Share (TCE / CSO) $
60.40 $ 68.55 $
64.57 (1) Preliminary.
______________________________
1 Citigroup’s total expenses divided by total revenues.
2 Preliminary. Citigroup’s adjusted ROE is a non-GAAP financial
measure and excludes the estimated impact of Tax Reform from net
income and average common equity. Citigroup’s reported ROE for the
fourth quarter of 2017 was (36.3)% and therefore not meaningful.
For the components of the calculation, see Appendix A. For
additional information, see Footnote 7.
3 Preliminary. Citigroup’s adjusted return on average tangible
common equity (RoTCE) and adjusted RoTCE excluding deferred tax
assets (DTAs) are non-GAAP financial measures and exclude the
estimated impact of Tax Reform from net income and average tangible
common equity (TCE). RoTCE represents annualized net income
available to common shareholders as a percentage of average TCE.
The amount that is excluded from adjusted average TCE represents
the average net DTAs excluded for purposes of calculating
Citigroup’s Common Equity Tier 1 (CET1) Capital under full
implementation of the U.S Basel III rules. For the components of
the calculation, see Appendix A. For additional information, see
Footnote 7.
4 Preliminary. Citigroup’s 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.
5 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.
6 Citigroup’s adjusted payout ratio, a non-GAAP financial
measure, is the sum of common dividends and common share
repurchases divided by net income available to common shareholders
excluding the estimated impact of Tax Reform. For the components of
the calculation, see Appendix A. For additional information, see
Footnote 7.
7 Preliminary. Represents the estimated fourth quarter 2017 and
full year 2017 impact of the enactment of the Tax Cuts and Jobs Act
(Tax Reform), which was signed into law on December 22, 2017. The
final impact of Tax Reform may differ from these estimates, due to,
among other things, changes in interpretations and assumptions made
by Citigroup, additional guidance that may be issued by the U.S.
Department of the Treasury, and actions that Citigroup may take.
For the components of the calculation, see Appendix A.
8 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.
9 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 Appendix B.
10 Credit derivatives are used to economically hedge a portion
of the corporate loan portfolio that includes both accrual loans
and loans at fair value. Gains / (losses) on loan hedges includes
the mark-to-market on the credit derivatives and the mark-to-market
on the loans in the portfolio that are at fair value. The fixed
premium costs of these hedges are netted against the corporate
lending revenues to reflect the cost of credit protection.
Citigroup’s results of operations excluding the impact of gains /
(losses) on loan hedges are non-GAAP financial measures.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180116005718/en/
For Citigroup Inc.Press:Mark Costiglio,
212-559-4114orInvestors:Susan Kendall, 212-559-2718orFixed Income
Investors:Thomas Rogers, 212-559-5091
Citigroup (NYSE:C)
Historical Stock Chart
From Mar 2024 to Apr 2024
Citigroup (NYSE:C)
Historical Stock Chart
From Apr 2023 to Apr 2024
