For Immediate Release Citigroup Inc. (NYSE: C) July 16, 2010

Citigroup Reports Second Quarter 2010 Net Income of $2.7 Billion; $0.09 Per Diluted Share

First Half 2010 Net Income of $7.1 Billion
Second Quarter 2010 Revenues of $22.1 Billion and Expenses of $11.9 Billion
Net Credit Losses of $8.0 Billion Declined for The Fourth Consecutive Quarter
Tier 1 Capital Ratio of 12.0%; Tier 1 Common Ratio1 of 9.7%
Tier 1 Common of $99.5 Billion and Allowance for Loan Losses of $46.2 Billion
Citicorp Revenues of $16.5 Billion, Net Income of $3.8 Billion
Citi Holdings Revenues of $4.9 Billion, Net Loss of $1.2 Billion

New York – Citigroup Inc. today reported second quarter 2010 net income of $2.7 billion or $0.09 per diluted share, on revenues of $22.1 billion, marking a second consecutive profitable quarter. Citigroup earned $7.1 billion of net income in the first six months of 2010.

Revenues declined $3.4 billion and net income was down $1.7 billion from the first quarter of 2010, largely as a result of lower Securities and Banking and Special Asset Pool revenues. Other core businesses showed consistent strength, including Transaction Services with $929 million in net income and sequential revenue growth across all international regions.

Provisions for credit losses and for benefits and claims declined $2.0 billion sequentially to $6.7 billion, the lowest level since the third quarter of 2007, reflecting continued improvement in credit quality. This helped increase Regional Consumer Banking's net income by 16% sequentially to $1.2 billion.

Although Citigroup maintained expense discipline, expenses were up 3% sequentially, reflecting the impact of the U.K. bonus tax.

"I am pleased that we have produced solid operating results for the second consecutive quarter," said Vikram Pandit, Chief Executive Officer of Citi. "We continue to execute our strategy of serving clients with our unique global footprint in both the developed and emerging markets. Most importantly, Citi's quarter-million people around the world are working tirelessly for our clients and shareholders.

"While the market environment lowered revenues in Securities and Banking, credit improved for the fourth consecutive quarter. We saw growth internationally, particularly in Transaction Services and Regional Consumer Banking in Latin America and Asia. We continue to reduce the size of Citi Holdings, and it now makes up less than a quarter of Citigroup's balance sheet," added Mr. Pandit.

Citigroup has been focusing on its core businesses in Citicorp – Securities and Banking, Transaction Services and Regional Consumer Banking – while continuing to divest non-core businesses in Citi Holdings. In the second quarter of 2010, Citicorp earned $3.8 billion while Citi Holdings had a loss of $1.2 billion. Citi Holdings reduced its assets by $38 billion in the second quarter and by a total of $362 billion since the peak in the first quarter of 2008, for a 44% reduction. Citi Holdings now represents less than 25% of Citigroup's assets compared to 38% at its peak.

Citigroup continues to increase its financial strength and is one of the best capitalized banks in the world, as indicated by $122.9 billion in Tier 1 Capital and a Tier 1 Common ratio of 9.7%. In addition, it has common equity of $154.5 billion and $46.2 billion in loan loss reserves.

"Although economic conditions remain challenging and global regulatory frameworks are uncertain, we believe these results demonstrate that the difficult decisions made by our management team have put in place all the elements for sustained profitability," concluded Mr. Pandit.

Key Items


Citigroup revenues were $22.1 billion, down $3.4 billion, or 13%, from the first quarter of 2010.

Citicorp revenues were $16.5 billion, down $2.0 billion, or 11%, from the first quarter of 2010, driven by a decline in Securities and Banking. Outside of North America, Transaction Services revenues increased 4% and Regional Consumer Banking revenues increased 1%.

Citi Holdings revenues were $4.9 billion, down $1.6 billion, or 25%, from the prior quarter.

Corporate/Other revenues were $663 million, up $314 million, or 90%, from the prior quarter, mainly driven by hedging activities.


Citigroup expenses were $11.9 billion, up $348 million, or 3%, from the prior quarter, and included $404 million from the U.K. bonus tax.

Citicorp expenses were $9.1 billion, up $605 million, or 7%, from the prior quarter. Excluding the approximately $400 million U.K. bonus tax in Citicorp, most of which was recorded in Securities and Banking, expenses were up 3%, reflecting continued selective investments in Asia and Latin America.

Citi Holdings expenses were $2.4 billion, down $150 million, or 6%, from the prior quarter, reflecting continued expense discipline and the absence of Primerica.


Citigroup total provisions for credit losses and for benefits and claims of $6.7 billion declined $2.0 billion, or 23%, sequentially, to the lowest level since the third quarter of 2007.

Citicorp credit costs of $2.3 billion were down $492 million, or 17%, from the prior quarter, and included net credit losses of $3.0 billion and a $665 million net reserve release for loan losses and unfunded lending commitments. The decline in credit costs reflected continued improvement in corporate credit and key consumer markets, particularly Mexico and India cards.

Citi Holdings credit costs were $4.3 billion, which included $5.0 billion of net credit losses, a net reserve release for loan losses and unfunded lending commitments of $845 million, and a $185 million provision for policyholder benefits and claims. Net credit losses declined 5% sequentially, and the net reserve release compared to a $314 million net build in the prior quarter.


The effective tax rate on continuing operations was 23%, reflecting taxable earnings in lower tax rate jurisdictions, as well as tax advantaged earnings.


Citigroup net income was $2.7 billion, down $1.7 billion, or 39%, from the prior quarter.

Citicorp net income of $3.8 billion was $1.4 billion, or 27%, lower than the prior quarter, driven by lower revenues in Securities and Banking and higher expenses, partially offset by a decline in credit costs.

Citi Holdings net loss was $1.2 billion, compared to a net loss of $887 million in the prior quarter. The decline in revenues was offset by continued improvement in expenses and credit costs. The sequential decline in net income was mainly due to lower benefits for income taxes in the current quarter.

Corporate/Other net income of $126 million, net of discontinued operations, was down $49 million, or 28%, from the prior quarter.


Citi will host a conference call today at 11:00 AM (EDT). A live webcast of the presentation, as well as financial results and presentation materials, will be available at A replay of the webcast will be available at Dial-in numbers for the conference call are as follows: (877) 700-4194 in the U.S.; (706) 679-8401 outside of the U.S. The conference code for both numbers is 78856010.

Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through Citicorp and Citi Holdings, Citi 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 or

Additional financial, statistical, and business-related information, as well as business and segment trends, is included in a Financial Supplement. Both the earnings release and the Financial Supplement are available on Citigroup's website at or

Certain statements in this release are "forward-looking statements" within the meaning of the 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. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in Citigroup's filings with the U.S. Securities and Exchange Commission.

Click here for the complete press release and summary financial information.

1 Tier 1 Common and related ratios, as used throughout this release, are non-GAAP financial measures. See Appendix B for additional information on these metrics.

2 As previously disclosed, effective January 1, 2010, Citigroup adopted SFAS No. 166, Accounting for Transfers of Financial Assets, an amendment of FASB Statement No. 140 (SFAS 166) and SFAS No. 167, Amendments to FASB Interpretation No. 46(R) (SFAS 167). As a result, reported and managed basis presentations are equivalent for periods beginning January 1, 2010. For comparison purposes throughout this release, as applicable, second quarter 2009 revenues, net credit losses, and provisions for credit losses and for benefits and claims are presented on a managed basis. For additional information, see Citigroup's Second Quarter 2010 Quarterly Financial Data Supplement filed on Form 8-K with the U.S. Securities and Exchange Commission on July 16, 2010.

3 Tangible Book Value is a non-GAAP financial measure. See Appendix B for additional information on this metric.

4 See Appendix A for quarterly CVA amounts.