For Immediate Release
    Citigroup Inc. (NYSE: C)
    April 16, 2015

    Citigroup Reports First Quarter 2015 Earnings per Share of $1.51; $1.52 Excluding CVA1

    Net Income of $4.8 Billion
     
    Revenues of $19.7 Billion; $19.8 Billion Excluding CVA/DVA
     
    Return on Average Assets of 1.05% Excluding CVA/DVA
     
    Citicorp Efficiency Ratio of 54%
     
    Net Interest Margin of 2.92%
     
    Utilized Approximately $1.2 Billion of Deferred Tax Assets
     
    Common Equity Tier 1 Capital Ratio of 11.0%2
     
    Supplementary Leverage Ratio of 6.4%3
     
    Book Value per Share of $66.79
     
    Tangible Book Value per Share of $57.664
     
    Citi Holdings Assets of $122 Billion Declined 19% from Prior Year Period and Represented 7% of Total Citigroup Assets at Quarter End

    New York – Citigroup Inc. today reported net income for the first quarter 2015 of $4.8 billion, or $1.51 per diluted share, on revenues of $19.7 billion. This compared to net income of $3.9 billion, or $1.23 per diluted share, on revenues of $20.2 billion for the first quarter 2014.

    CVA/DVA was negative $73 million (negative $47 million after-tax) in the first quarter 2015, compared to $7 million ($4 million after-tax) in the prior year period. First quarter 2014 results also included a $210 million tax charge5 (recorded in Corporate/Other). Excluding CVA/DVA, revenues were $19.8 billion, down 2% from the prior year period. Excluding CVA/DVA and the tax item in the prior year period, earnings were $1.52 per diluted share, up 17% from prior year earnings of $1.30 per diluted share.

    Michael Corbat, Chief Executive Officer of Citigroup, said, "We had a strong quarter overall, particularly in executing against our top strategic priorities. While some businesses faced revenue headwinds, we grew loans and deposits in our core businesses and gained wallet share among our target clients. We tightly managed our expenses, helping to achieve positive operating leverage in Citicorp and we are on track to hit our financial targets for the year.

    "Citi Holdings was profitable again and we announced the sale of OneMain, the largest business remaining in Holdings. We utilized $1.2 billion of deferred tax assets, helping increase our Common Equity Tier 1 Capital ratio to 11.0% and our Supplementary Leverage Ratio to 6.4%.

    "We were pleased that the Federal Reserve did not object to our capital plan so we can now begin meaningful capital return to our shareholders. We remain committed to building a safer and stronger institution and we will continue to make the necessary investments to ensure we have a sustainable capital planning process," Mr. Corbat concluded.

    Read the full press release with tables.

    Citigroup
    Citigroup revenues were $19.7 billion in the first quarter 2015, down 2% from the prior year period. Excluding CVA/DVA, revenues of $19.8 billion decreased 2% from the prior year period, driven by a 1% decrease in Citicorp revenues and a 7% decrease in Citi Holdings revenues. Excluding CVA/DVA and the impact of foreign exchange translation6, Citigroup revenues increased 1% from the prior year period, as 2% growth in Citicorp revenues was partially offset by the decrease in Citi Holdings.

    Citigroup's net income increased 21% to $4.8 billion in the first quarter 2015 from $3.9 billion in the prior year period. Excluding CVA/DVA in both periods and the tax item in the prior year period, net income of $4.8 billion increased 16% from the prior year period, primarily driven by lower operating expenses and lower net credit losses, partially offset by lower revenues and a reduced net loan loss reserve release.

    Citigroup's operating expenses were $10.9 billion in the first quarter 2015, 10% lower than the $12.1 billion in the prior year period, driven by ongoing efficiency savings and lower legal and related expenses and repositioning costs, as well as the impact of foreign exchange translation, partially offset by higher regulatory and compliance costs and volume-related expenses. Excluding the impact of foreign exchange translation, operating expenses declined 6% from the prior year period. Operating expenses in the first quarter 2015 included legal and related expenses of $387 million, compared to $945 million in the prior year period, and $16 million of repositioning charges, compared to $211 million in the prior year period.

    Citigroup's cost of credit in the first quarter 2015 was $1.9 billion, a 3% decrease from the prior year period, primarily reflecting a 20% reduction in net credit losses, largely offset by the lower net release of loan loss reserves.

    Citigroup's effective tax rate was 31% in the current quarter, a slight decrease from the prior year period (excluding CVA/DVA and the tax item in the prior year period).

    Citigroup's allowance for loan losses was $14.6 billion at quarter end, or 2.38% of total loans, compared to $18.9 billion, or 2.87% of total loans, at the end of the prior year period. The $239 million net release of loan loss reserves in the current quarter compared to a $673 million net release in the prior year period. Citigroup asset quality continued to improve as total non-accrual assets fell to $7.0 billion, a 22% reduction compared to the first quarter 2014. Corporate non-accrual loans declined 28% to $1.2 billion, while consumer non-accrual loans declined 20% to $5.6 billion.

    Citigroup's loans were $621 billion as of quarter end, down 7% from the prior year period, and down 3% on a constant dollar basis. In constant dollars, 2% growth in Citicorp loans was offset by continued declines in Citi Holdings, driven primarily by reductions in the North America mortgage portfolio and the reclassification of $10 billion of loans to other assets related to the previously-announced pending agreements to sell OneMain Financial and Citi's credit card operations in Japan.

    Citigroup's deposits were $900 billion as of quarter end, down 7% from the prior year period. In constant dollars, Citigroup's deposits decreased 3%. In constant dollars, Citicorp deposits grew 3% driven by a 6% increase in Institutional Clients Group (ICG) deposits and a 2% increase in Global Consumer Banking (GCB) deposits, while Citi Holdings deposits declined 80%, primarily driven by the reclassification of $21 billion of deposits to other liabilities during the fourth quarter 2014 reflecting the pending agreement to sell Citi's retail banking business in Japan.

    Citigroup's book value per share was $66.79 and its tangible book value per share was $57.66, each as of quarter end, representing 1% and 2% increases, respectively, versus the prior year period. At quarter end, Citigroup's Common Equity Tier 1 Capital ratio was 11.0%, up from 10.5% in the prior year period. Citigroup's Supplementary Leverage Ratio for the first quarter 2015 was 6.4%, up from 5.7% in the prior year period.

    Citicorp

    Citicorp revenues of $17.9 billion in the first quarter 2015 decreased 2% from the prior year period. CVA/DVA, reported within ICG, was negative $69 million in the first quarter 2015 (negative $44 million after-tax), compared to negative $7 million (negative $4 million after-tax) in the prior year period. Excluding CVA/DVA, revenues of $18.0 billion declined 1% from the first quarter 2014, as ICG revenues decreased 1% and GCB revenues decreased 2%. Corporate/Other revenues were $212 million, a slight decrease from the prior year period.

    Citicorp net income was $4.6 billion, 9% higher than the prior year period. Excluding CVA/DVA and the tax item in the prior year period, Citicorp’s net income of $4.7 billion increased 5% from $4.4 billion in the first quarter 2014, primarily driven by lower operating expenses and lower net credit losses, partially offset by the lower revenues and a lower net loan loss reserve release.

    Citicorp operating expenses were $9.7 billion, a 4% decrease from the prior year period. Excluding the impact of foreign exchange translation, operating expenses increased 1% as growth-related expenses and higher regulatory and compliance costs were partially offset by ongoing efficiency savings. Operating expenses in the first quarter 2015 included legal and related expenses of $307 million (largely in Corporate/Other), compared to $162 million in the prior year period, and $1 million of repositioning charges, compared to $191 million in the prior year period.

    Citicorp cost of credit of $1.5 billion in the first quarter 2015 declined 3% from the prior year period. Lower credit costs in international GCB were partially offset by higher credit costs in ICG and North America GCB. GCB and ICG each recorded lower net credit losses. Citicorp’s consumer loans 90+ days delinquent decreased 20% from the prior year period to $2.2 billion, and the 90+ days delinquency ratio improved to 0.80% of loans.

    Citicorp end of period loans decreased 1% from the prior year period to $559 billion. Corporate loans were unchanged at $279 billion, and consumer loans decreased 3% to $280 billion. On a constant dollar basis, Citicorp end of period loans grew 2% versus the prior year period, with 4% growth in corporate loans and 1% growth in consumer loans.

    Global Consumer Banking
    GCB revenues of $8.7 billion decreased 2% from the prior year period, with 4% growth in North America offset by a 10% decline in international revenues. On a constant dollar basis, revenues increased 2%, driven by the growth in North America.

    GCB net income rose 4% from the prior year period to $1.7 billion, as lower expenses and credit costs were partially offset by lower revenues and the impact of a tax benefit in the prior year period. Operating expenses decreased 7% to $4.6 billion, and decreased 2% in constant dollars, reflecting ongoing efficiency savings partially offset by volume-related expenses.

    North America GCB revenues rose 4% to $5.0 billion versus the prior year period, primarily reflecting higher revenues in retail banking. Retail banking revenues rose 18% from the prior year period to $1.3 billion, reflecting 6% growth in average loans, 1% growth in average deposits, increased mortgage origination activity and improved deposit spreads. Current period results also included a gain of approximately $110 million related to the sale of branches in Texas, while the prior year period included a gain of approximately $70 million related to a sale-leaseback transaction. Citi-branded cards revenues of $2.0 billion decreased 1% versus the prior year period, as the impact of lower average loans was partially offset by the impact of 3% growth in purchase sales and an improvement in spreads. Citi retail services revenues increased 1% to $1.6 billion, primarily reflecting the impact of higher spreads and 1% growth in average loans, partially offset by higher contractual partner payments.

    North America GCB net income was $1.1 billion, up 12% versus the first quarter 2014, driven by the increase in revenues, lower operating expenses and reduced net credit losses, partially offset by a lower net loan loss reserve release and the impact of a tax benefit in the prior year period. Operating expenses declined 6% versus the prior year period to $2.3 billion, driven by ongoing efficiency savings and a reduction in legal and related and repositioning expenses.

    North America GCB credit quality continued to improve as net credit losses of $1.0 billion decreased 13% versus the prior year period. Net credit losses improved versus the prior year period in Citi-branded cards (down 16% to $492 million) and in Citi retail services (down 10% to $433 million). The reserve release in the first quarter 2015 was $99 million, $170 million lower than in the first quarter 2014, as credit continued to stabilize. Delinquency rates improved from the prior year period in both Citi-branded cards and Citi retail services.

    International GCB revenues decreased 10% versus the first quarter 2014 to $3.7 billion. In constant dollars, revenues were approximately unchanged versus the prior year period. Revenues in Latin America were approximately unchanged at $1.8 billion, with volume-related growth in Mexico offsetting the impact of business divestitures in the prior year period. In Asia, revenues decreased by 1% to $1.8 billion, as volume growth was more than offset by spread compression and the ongoing impact of regulatory changes in certain markets.

    International GCB net income decreased 9% from the prior year period to $590 million. In constant dollars, net income decreased 5% driven by higher operating expenses, partially offset by lower credit costs. Operating expenses in the first quarter 2015 increased 2% (decreased 7% on a reported basis) as the impact of volume growth and higher regulatory and compliance costs were mostly offset by ongoing efficiency savings. Credit costs decreased 6% versus the prior year period (decreased 17% on a reported basis), as a 24% decrease in Asia was partially offset by a 1% increase in Latin America. Net credit losses increased 6% to $590 million (decreased 6% on a reported basis), largely due to volume-related growth. The net credit loss rate was 1.88% of average loans in the first quarter 2015, compared to 1.84% in the prior year period.

    Institutional Clients Group
    ICG revenues fell 1% from the prior year period to $9.0 billion. Excluding the impact of CVA/DVA, revenues of $9.1 billion decreased 1% from the prior year period, as higher revenues in Banking and gains on loan hedges were offset by lower revenues in Markets and Securities Services.

    Banking revenues of $4.2 billion increased 4% from the prior year period (excluding gain / (loss) on loan hedges in each period), reflecting growth in Investment Banking, Private Bank and Corporate Lending. Treasury and Trade Solutions (TTS) revenues of $1.9 billion decreased 2% versus the prior year period. Excluding the impact of foreign exchange translation, TTS revenues grew 4%, as growth in deposit balances and spreads was partially offset by lower trade revenues. Investment Banking revenues increased 14% versus the prior year period, driven by a 70% increase in advisory revenues to $298 million and a 16% increase in debt underwriting revenues to $669 million, partially offset by a 23% decrease in equity underwriting revenues to $231 million. Private Bank revenues increased 6% to $708 million from the prior year period (excluding $3 million of CVA/DVA in each period) driven by increased client volumes and growth in capital markets products. Corporate Lending revenues rose 7% versus the prior year period to $445 million (excluding gain / (loss) on loan hedges in each period) reflecting growth in average loans and improvement in mark-to-market adjustments.

    Markets and Securities Services revenues of $4.8 billion (excluding negative $72 million of CVA/DVA, versus negative $10 million in the prior year period) fell 6% from the prior year period. Fixed Income Markets revenues of $3.5 billion in the first quarter 2015 (excluding negative $75 million of CVA/DVA, compared to negative $26 million in the prior year period) decreased 11% from the prior year period, primarily driven by lower spread product revenues, partially offset by growth in rates and currencies. Equity Markets revenues of $873 million (excluding $3 million of CVA/DVA, compared to $16 million in the prior year period) decreased 1% versus the prior year period, driven by lower revenues in cash equities partially offset by growth in prime finance. Securities Services revenues of $543 million grew 12% versus the prior year period, reflecting increased activity and higher client balances.

    ICG net income was $2.9 billion in the first quarter 2015. Excluding CVA/DVA, net income of $3.0 billion increased 2% from the prior year period, as lower operating expenses were partially offset by the lower revenues and an increase in the cost of credit. ICG operating expenses fell 5% to $4.6 billion driven by the impact of foreign exchange translation, lower legal and related and repositioning expenses, and ongoing efficiency savings, partially offset by higher regulatory and compliance costs. ICG cost of credit increased by $47 million over the prior year period related to a loan loss reserve build, partially offset by a reduction in net credit losses.

    ICG average loans grew 1% versus the prior year period to $276 billion while end of period deposits were unchanged at $571 billion. In constant dollars, average loans were up 4% versus the prior year period, while end of period deposits increased 6%.

    Citi Holdings
    Citi Holdings revenues of $1.8 billion in the first quarter 2015 included CVA/DVA of negative $4 million, compared to $14 million in the prior year period. Excluding CVA/DVA, Citi Holdings revenues decreased 7% from the prior year period, driven by the overall wind-down of the portfolio. As of the end of the quarter, Citi Holdings assets were $122 billion, 19% below the prior year period, and represented approximately 7% of total Citigroup assets.

    Citi Holdings net income, excluding CVA/DVA, was $149 million, an improvement from a loss of $292 million in the prior year period, primarily reflecting lower operating expenses. Citi Holdings operating expenses declined 43% from the prior year period to $1.2 billion, driven by lower legal and related expenses ($80 million in the first quarter 2015, compared to $784 million in the prior year period) as well as the ongoing decline in Citi Holdings assets. Net credit losses decreased 29% from the prior year period to $408 million, primarily driven by continued credit improvements and reductions in the North America mortgage portfolio. The net loan loss reserve release decreased 43% from the prior year period to $201 million, primarily due to lower releases related to the North America mortgage portfolio.

    Citi Holdings allowance for credit losses was $3.6 billion at the end of the first quarter 2015, or 5.85% of loans, compared to $6.4 billion, or 6.61% of loans, in the prior year period. 90+ days delinquent consumer loans in Citi Holdings decreased 40% to $1.7 billion, or 2.88% of loans.

    Citigroup will host a conference call today at 11 a.m. (EST). 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 90108772.

    Citi
    Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. 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 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 Citi's Third Quarter 2013 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 rules and regulations of the U.S. Securities and Exchange Commission. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. 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 document 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 2011 Annual Report on Form 10-K.

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

    1 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). See Appendix A. Citigroup’s results of operations excluding the impact of CVA/DVA are non-GAAP financial measures. For a reconciliation of these measures to reported results, see Appendix B.

    2 Preliminary. Citigroup’s Common Equity Tier 1 Capital ratio under the U.S. Basel III rules, on a fully-implemented basis, is a non-GAAP financial measure. Citigroup’s Common Equity Tier 1 Capital ratio and its related components are subject to, among other things, ongoing regulatory supervision, including review and approval of Citi’s credit, market and operational risk models, additional refinements, modifications or enhancements (whether required or otherwise) to these models and any further implementation guidance in the U.S. For the composition of Citigroup’s Common Equity Tier 1 Capital and ratio, see Appendix D.

    3 Preliminary. Citigroup's Supplementary Leverage Ratio (SLR) under the U.S. Basel III rules, on a fully-implemented basis, is a non-GAAP financial measure. Citigroup's SLR represents the ratio of Tier 1 Capital to Total Leverage Exposure (TLE). TLE is the sum of the daily average of on-balance sheet assets for the quarter and the average of certain off-balance sheet exposures calculated as of the last day of each month in the quarter, less applicable Tier 1 Capital deductions. Citigroup's SLR and related components are subject to, among other things, ongoing regulatory supervision and any further implementation guidance in the U.S.

    4 Tangible book value per share is a non-GAAP financial measure. For a reconciliation of this measure to reported results, see Appendix E.

    5 First quarter 2014 results included a $210 million tax charge (recorded in Corporate/Other) related to corporate tax reforms enacted in two states. These reforms lowered marginal tax rates, resulting in a reduction in Citigroup’s state deferred tax assets. Citigroup’s results of operations, excluding this tax item, are non-GAAP financial measures. For a reconciliation of these measures to reported results, see Appendix B.

    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 B and C.

    7 Hedges on accrual loans reflect the mark-to-market on credit derivatives used to hedge the corporate loan portfolio. The fixed premium cost of these hedges is included in (netted against) the core lending revenues to reflect the cost of the credit protection. Results of operations excluding the impact of gain/(loss) on loan hedges are non-GAAP financial measures.