FOR IMMEDIATE RELEASE January 18, 2000

• PDF format of this earnings release • Financial Supplement PDF - 210kb | Excel - 461kb

Citigroup Reports Record Core Income For The Fourth Quarter And For 1999

Fourth Quarter Core Income Up 86% To $2.61 Billion

Diluted Core EPS $0.75 From $0.40, Up 88%

1999 Earnings Approach $10 Billion
Full Year Diluted Core EPS $2.85 From $1.77, Up 61%

Revenues Up 16% In 1999

New York, NY — Citigroup Inc. (NYSE: C) today reported core income of $2.61 billion for the fourth quarter ended December 31, 1999. For the full year, core income was $9.95 billion, a 57% increase over the prior year.

• Core income per diluted share for the quarter, at $0.75, reflected an 88% increase from the comparable 1998 period, on the strength of broad-based revenue growth, continued progress on expense controls and stable credit quality.
   
• Record earnings in the Global Consumer business and robust growth from the integrated Global Corporate and Investment Bank contributed to the strong performance in the quarter and the year.
   
• The Company generated a return on equity of 22.3% in the quarter, and 22.7% for the year.
   
• Citigroup achieved its stated target of $2 billion in annualized expense reductions and expects to make further progress on expenses in 2000.
   
• Citigroup remains among the most well-capitalized financial institutions in the world, with total equity capital and trust securities reaching $54.6 billion at the end of 1999, up from $47.0 billion at the end of 1998. The Tier I capital ratio is 9.6%.
   
• In 1999, Citigroup delivered additional value to shareholders by repurchasing $4 billion in stock. Earlier this year, Citigroup also announced a 17% dividend increase and a 3-for-2 stock split.
   
• Net income was $2.62 billion for the quarter, and $9.87 billion for the year, up 287% and 70% respectively.
   

"Our exceptionally strong capital position and the successful integration of our global businesses will enable us to take full advantage of the new financial modernization legislation in the coming year. This legislation opens up new horizons for our Company and will facilitate our expansion in the global financial services arena. Our already impressive geographic and business diversity provides us with several important advantages. It has proven its power during a vibrant global market environment and will be even more critical as a source of stability and opportunity when market conditions are less robust. Our diversity also enhances our position on the Internet, enabling us to deliver to a greater number and range of customers a broader array of quality products and services than virtually any other financial services company. And, with approximately 30% of our earnings generated from outside the U.S. and our recent expansion efforts in Latin America and Japan, we are well-positioned in regions likely to achieve higher growth in the coming year.

"As we continue to forge new ground with our pioneering combination," continued Messrs. Reed and Weill, "we are delighted to be joined in the Office of the Chairman by Bob Rubin, whose expertise and insight are already making positive contributions."

The Global Consumer business achieved record results for the quarter, generating an 8% increase in revenues through internal growth and acquisitions, while holding expense growth to only 2%. The business also benefited from stable credit quality in most regions of the world. Recent acquisitions in the cards and consumer finance segments across Argentina, Chile, Mexico, Australia and the U.S. were accretive in 1999. The business also continued to expand its presence in Japan, where the Company now has more than one million customers.

During the quarter, e-Citi continued to develop Citigroup's Internet presence. Leveraging its leading market share in cards in the U.S., the Company introduced ClickCredit, an electronic line of credit designed specifically for purchases on the Internet. In tandem, Citigroup launched CitiPlaza, its on-line shopping portal featuring a variety of merchants and shopping services. The Company expects these initiatives to help expand its existing base of more than three million customers who are now doing business with Citigroup on-line. Furthermore, early cross marketing efforts have yielded positive results and are expected to contribute a greater level of revenues in 2000.

• Banking/Lending income rose 43% to $612 million. Revenues increased 14% at Citibanking North America, as efforts to enhance sales processes resulted in growth in investment product sales and customer deposits. Expenses declined 21%, or $91 million, from the comparable quarter last year, contributing to core income growth of 578%. Mortgage Banking income rose 4%, as increased student loan volume and the contribution of Source One, acquired earlier in 1999, offset a higher credit provision. Cards income increased 11% as a 4% rise in U.S. bankcard sales volumes and 7% growth in receivables to $74.2 billion offset the impact of rising interest rates. U.S. bankcard credit losses continued to improve, declining 39 basis points over the prior year, to 4.43%. Acquisitions and record production by Primerica agents helped fuel a 30% increase in receivables at CitiFinancial. The credit environment and a continued shift towards real estate secured products improved the charge-off rate to 2.19%, down 48 basis points from one year ago.
   
• Insurance income increased 9% to $344 million. Travelers Life and Annuity reported a 9% increase in income, driven by strong business volumes in the annuity and individual life product lines and higher net investment income, offset by certain mortality and other expenses. Primerica core income rose 12%, driven by increased sales of investment products, debt consolidation loans and life insurance in force. Travelers Property Casualty Personal Lines core income rose 7%, as increased production and lower weather-related losses were partly offset by lower prior year reserve development. Net written premiums increased 2%, as strong sales through independent agents and diversified distribution channels were offset by the curtailment of the SECURE product.
   
• International income grew 37% to $291 million. Europe, Middle East and Africa continued its strong performance, recording a 53% increase in core income on higher business volumes in Germany and the expansion of new markets in Central and Eastern Europe. Latin America achieved a 118% increase in core income, as continued improvements at Brazilian credit card affiliate Credicard, contributions from new acquisitions, and successful expense control efforts offset the impact of higher credit losses. Revenues rose 19% in Asia Pacific on higher business volume and contributions from the Diners Club franchise in Australia, which was acquired in December 1998, although higher spending on new business initiatives and increased credit costs in certain countries held income growth to 2%.
   

GLOBAL CORPORATE AND INVESTMENT BANK
4^th Quarter Core Income: $1.31 billion, up 136% from 1998 Period

1999 Core Income: $5.08 billion, up 114%

Citigroup's Global Corporate and Investment Bank capped a record year with robust fourth quarter earnings. Continued strong growth in investment banking revenues, coupled with the group's leadership on a number of ground-breaking transactions around the world, underscored the success of the integration of Salomon Smith Barney and Citibank's Global Corporate Bank. Most recently, Salomon Smith Barney is advising America Online on its $130 billion announced merger with Time Warner. SSB investment banking revenues generated with Citibank's target Global Relationship Banking clients rose 47% over the prior year.

On the strength of the combined business, Citigroup was recognized as "Bank of the Year" by International Financing Review, which also named Citibank/SSB "Loan House of the Year" and "Asia-Pacific Loan House of the Year". SSB was named as "Dollar Bond House of the Year". Citibank was ranked number one in Global Transaction Services by Global Finance and the top bank in Cash Management, Foreign Exchange and Project Finance, as well as the top Emerging Markets Bank, by Corporate Finance Magazine. SSB continues to rank second in global underwriting and first in municipal finance. Nikko Salomon Smith Barney vaulted to a leadership position in investment banking in Japan, acting as joint global coordinator and bookrunner for NTT's $15 billion privatization offering. The NTT privatization was the largest secondary offering in history and the second largest telecom offering ever, after NTT Docomo ($18 billion), which Nikko-SSB also lead managed.

• Salomon Smith Barney reported record performance in the quarter, including the highest commission and investment banking revenues in its history and strong principal transactions and asset management revenues. The $664 million of core income exceeded 1999 third quarter performance by more than 50%. Return on equity reached 31.2% in the quarter, including SSB's asset management business in the Global Investment Management segment. Core income was up substantially from the fourth quarter of 1998, when results were negatively affected by extreme market volatility. Annualized gross production per financial consultant increased to $498,000 for the fourth quarter, and by year-end, total client assets under fee-based management (with revenues retained in this segment) topped $100 billion for the first time.
   
• The Global Corporate Bank reported income of $441 million, up 30% from the 1998 fourth quarter. Revenues increased 6%, reflecting double-digit growth in Latin America, Central and Eastern Europe, Middle East and Africa, and more moderate growth in North America and Europe. In Asia, lower expenses and improved net write-offs substantially offset revenue declines from lower trading activity. The business produced its sixth consecutive quarter of declining expenses, as restructuring actions, ongoing expense initiatives and lower Year 2000 and European Economic Monetary Union costs drove a 5% reduction.
   
• Travelers Property Casualty Commercial Lines' core income was essentially flat with that reported in the fourth quarter of 1998. Pricing trends, while continuing to show improvement during the quarter, had yet to be sufficient to raise profitability of new business in the middle market to acceptable levels. Investment income was down in the fourth quarter of 1999 versus an exceptionally strong level of net investment income in the prior year period, which was offset by lower weather-related costs and favorable prior year reserve development.
   

GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING
4^th Quarter Core Income: $153 million, up 34% from 1998 Period

1999 Core Income: $602 million, up 19%

The Global Investment Management and Private Banking business continues to strengthen its organization and position itself to capture significant asset flows. Among the highlights of the quarter was the signing of an agreement with State Street to form CitiStreet, a jointly owned global benefits delivery company that will focus on the defined contribution and total benefits administration markets for corporate and not-for-profit organizations.

• Asset Management income rose 50% over the prior year period to $78 million, with an 11% increase in assets under management and a double digit rise in revenues. This growth more than offset higher costs associated with building the business's global sales and marketing capabilities and continued investments in research, quantitative and technology expertise. This investment management build-out is now more than 75% complete.

  Assets under management rose to $364 billion including $31 billion managed for Global Private Bank clients. Cross-selling efforts helped to fuel a 12% increase in institutional client assets to $155 billion, with the Corporate Bank channel alone generating an additional $8 billion in client assets. Sales of the Group's proprietary mutual funds represented 34% of SSB's retail channel mutual fund sales for the year versus 31% in 1998. The Group also accounted for 56% of Primerica's U.S. mutual and money fund sales for the quarter and 60% for the year. Sales of Smith Barney Private Client separately managed accounts were up more than 80% from the prior year quarter and 117% for the year. The Group sold $638 million of mutual and money funds through the Citibank consumer bank in Europe for the quarter, and $3.0 billion for the full year. In Japan, sales through both the Citibank consumer bank and non-proprietary channels generated $470 million in mutual and money funds in the quarter, and $2.0 billion for the year.
   

• Core income for Private Banking rose 21% to $75 million in the quarter. Revenues increased 12%, as a result of strong investment product fees and increased lending activity across all regions. Client business volumes, which includes loans, deposits and other client assets under management and custody, rose to $140.1 billion.
   

The loss from Corporate/Other was 59% higher than in the prior year period. The loss included $36 million in after-tax expenses incurred related to performance vesting options which were issued by Citicorp prior to its merger with Travelers, and which have vested as certain pre-determined price levels have been met. Also included were higher technology costs associated with Year 2000 remediation, and higher treasury costs. Income from Investment Activities, including gains on investments, rose $198 million from the prior year's unusually low level, to $213 million, reflecting strong equity markets.

Citigroup (NYSE: C), the most global financial services company, provides some 100 million consumers, corporations, governments and institutions in over 100 countries with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage and asset management. The 1998 merger of Citicorp and Travelers Group brought together such brand names as Citibank, Travelers, Salomon Smith Barney, Commercial Credit (now named CitiFinancial) and Primerica under Citigroup's trademark red umbrella. Additional information may be found at http://www.citigroup.com.

A financial summary follows. 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 web site (http://www.citigroup.com). The document can also be obtained by fax by calling 1-800-853-1754 within the United States or 732-935-2771 outside the United States.