CITIGROUP NET INCOME OF
$3.6 BILLIONCITICORP NET INCOME OF $3.5 BILLION INCREASED
25%1 VERSUS PRIOR YEAR PERIOD
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%2SUPPLEMENTARY LEVERAGE RATIO OF
7.2%3
BOOK VALUE PER SHARE OF $74.26TANGIBLE BOOK
VALUE PER SHARE OF $64.574
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/DVA5 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
%Δ
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
translation6, 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
%Δ
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
%Δ
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
%Δ
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 revenues of $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
%Δ
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:
Accumulated net unrealized losses on cash
flow hedges, net of tax(3)
(560) (232) (617)
Cumulative unrealized net gain (loss)
related to changes in fair value of financial liabilities
attributable to own creditworthiness, net of tax(4)
(61) 335 441 Intangible Assets:
Goodwill, net of related deferred tax
liabilities (DTLs)(5)
20,880 21,763 21,980
Identifiable intangible assets other than
mortgage servicing rights (MSRs), net of related DTLs
4,910 5,177 3,586
Defined benefit pension plan net
assets
857 891 794
Deferred tax assets (DTAs) arising from
net operating loss, foreign tax credit and general business credit
carry-forwards
21,174 22,503 23,659
Excess over 10% / 15% limitations for
other DTAs, certain common stock investments and MSRs(6)
9,452 7,077 8,723
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 Held-for-Sale
72 30 68
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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Citigroup Inc.Press:Mark Costiglio,
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