1
the fourth quarter was very
disappointing due to the impact of
notable items, we made
substantial progress simplifying
Citi and executing our strategy in
2023. We restructured around five
core, interconnected businesses to
align our organization with our
strategy and to provide greater
transparency into their
performance. Revenues ex-
divestitures grew by 4%
(7)
and we
met our full-year expense
guidance. We increased our CET1
ratio to 13.3%, grew our Tangible
Book Value per share by 6% to
$86.19, and returned $6 billion in
capital to our shareholders in the
form of common dividends and
share buybacks.
ices revenues were up 16% for
the year driven by share gains and
client wins. In Markets, our fourth
quarter Fixed Income results were
disappointing as we saw a
significant slowdown in December.
We had a decent quarter in
Equities, particularly in Derivatives,
and saw growth in Prime balances.
Investment Banking revenue
continued to be impacted by a
weak wallet globally while activity
picked up in the fourth quarter
with revenues up 27%. While
investment activity in Asia
rebounded during the quarter, up
21%, Wealth revenues were down
in 2023 and we fully recognize that
to be. USPB was a bright spot with
every product up double-digits in
the quarter and up 14% overall for
the year.
path of our simplification and
divestures, 2024 will be a turning
focus on the performance of our
five businesses and our
Transformation. We remain
confident in our ability to adapt to
evolving capital and macro
environments to reach our
medium-term targets and return
capital to our shareholders, whilst
continuing the investments
Ms. Fraser concluded.
CEO COMMENTARY
For Immediate Release
Citigroup Inc. (NYSE: C)
January 12, 2024
FOURTH QUARTER AND FULL YEAR 2023 RESULTS AND KEY METRICS
RETURNED ~$6 BILLION IN THE FORM OF DIVIDENDS AND REPURCHASES IN
2023 (~$1.5 BILLION IN THE QUARTER)
2023 PAYOUT RATIO OF 76%
(3)
BOOK VALUE PER SHARE OF $98.71
TANGIBLE BOOK VALUE PER SHARE OF $86.19
(4)
New York, January 12, 2024 Citigroup Inc. today reported net loss for the fourth
quarter 2023 of $(1.8) billion, or $(1.16) per diluted share, on revenues of $17.4
billion. This compares to net income of $2.5 billion, or $1.16 per diluted share, on
revenues of $18.0 billion for the fourth quarter 2022.
As previously disclosed
(5)
, fourth quarter results included several notable items
consisting of: expenses associated with the Federal Deposit Insurance Corporation
(FDIC) special assessment of approximately $1.7 billion pre-tax; a reserve build of
$1.3 billion associated with transfer risk in Russia and Argentina; the pre-tax
revenue impact from the fourth quarter of 2023 devaluation of the Argentine peso
of approximately $880 million
(6)
; and a restructuring charge of approximately $780
combination of these items negatively impacted diluted earnings per share by
approximately $2.00. Excluding these items
(5)
, diluted earnings per share would
have been $0.84 for the quarter.
Revenues decreased 3% from the prior-year period on a reported basis. Excluding
divestiture-related impacts
(7)
and the pre-tax impact of the Argentina devaluation,
revenues increased 2%, driven by strength across Services, US Personal Banking
(USPB) and Investment Banking, partially offset by lower revenues in Markets and
Wealth and the revenue reduction from the closed exits and wind-downs.
4Q
Revenues
$17.4B
4Q Net
Loss
$(1.8)B
4Q
EPS
$(1.16)
4Q ROE
(4.5)%
4Q RoTCE
(5.1)%
(1)
CET1
Capital
Ratio
13.3%
(2)
2023
Revenues
$78.5B
2023 Net
Income
$9.2B
2023
EPS
$4.04
2023 ROE
4.3%
2023
RoTCE
4.9%
(1)
SLR
5.8%
(2)
2
Net loss of $(1.8) billion decreased from $2.5 billion of net income in the prior-year period, primarily driven by
higher expenses, higher cost of credit and the lower revenues.
Earnings per share of $(1.16) decreased from $1.16 per diluted share in the prior-year period, reflecting the net loss.
For the full year 2023, Citigroup reported net income of $9.2 billion, on revenues of $78.5 billion, compared to net
income of $14.8 billion on revenues of $75.3 billion for the full year 2022.
Percentage comparisons throughout this press release are calculated for the fourth quarter 2023 versus the
fourth quarter 2022, unless otherwise specified.
Fourth Quarter Financial Results
Citigroup
Citigroup revenues of $17.4 billion in the fourth quarter 2023 decreased 3% on a reported basis. Excluding
divestiture-related impacts and the pre-tax impact of the Argentina devaluation, revenues increased 2%, driven
by strength across Services, USPB and Investment Banking, partially offset by lower revenues in Markets and
Wealth and the revenue reduction from the closed exits and wind-downs.
Citigroup operating expenses of $16.0 billion on a reported basis increased 23% in the fourth quarter 2023, which
included the FDIC special assessment of $1.7 billion pre-tax and modest divestiture-related costs. Excluding the
impact of the FDIC special assessment and the modest divestiture-related costs, expenses increased 10% to
$14.2 billion, largely driven by the restructuring charge.
Citigroup cost of credit was approximately $3.5 billion in the fourth quarter 2023, compared to $1.8 billion in the
prior-year period. In addition to the reserve build for transfer risk, quarterly cost of credit was driven by cards net
credit losses, which are now at pre-Covid levels, as well as allowance for credit losses (ACL) builds for new card
volumes.
Citigroup net loss of $(1.8) billion in the fourth quarter 2023, compared to net income of $2.5 billion in the prior-
year period, driven by the higher expenses, the higher cost of credit and the lower revenues.
4Q'23 3Q'23 4Q'22 QoQ% YoY% 2023 2022 %Δ
17,440 20,139 18,006 (13)% (3)% 78,462 75,338 4%
15,996 13,511 12,985 18% 23% 56,366 51,292 10%
Net credit losses 1,994 1,637 1,180 22% 69% 6,437 3,789 70%
Net ACL build / (release)
(a)
397 125 640 NM (38)% 924 1,247 (26)%
Other provisions
(b)
1,156 78 25 NM NM 1,825 203 NM
3,547 1,840 1,845 93% 92% 9,186 5,239 75%
(2,103) 4,788 3,176 NM NM 12,910 18,807 (31)%
(296) 1,203 640 NM NM 3,528 3,642 (3)%
(1,807) 3,585 2,536 NM NM 9,382 15,165 (38)%
(1) 2 (2) NM 50% (1) (231) 100%
31 41 21 (24)% 48% 153 89 72%
$(1,839) $3,546 $2,513 NM NM $9,228 $14,845 (38)%
689 666 657 3% 5%
2,405 2,369 2,417 2% -
1,309 1,274 1,366 3% (4)%
$98.71 $99.28 $94.06 (1)% 5% $98.71 $94.06 5%
$86.19 $86.90 $81.65 (1)% 6% $86.19 $81.65 6%
13.3% 13.6% 13.0% 13.3% 13.0%
5.8% 6.0% 5.8% 5.8% 5.8%
(4.5)% 6.7% 5.0% 4.3% 7.7%
Return on average tangible common equity (RoTCE)
(1)
(5.1)% 7.7% 5.8% (1,280) bps (1,090) bps 4.9% 8.9% (400) bps
Note: Please refer to the Appendices and Footnotes at the end of this press release for additional information.
(a) Includes credit reserve build / (release) for loans and provision for credit losses on unfunded lending commitments.
(b) Includes provisions on Other Assets, policyholder benefits and claims and HTM debt securities.
Tangible book value per share
(4)
Common Equity Tier 1 (CET1) Capital ratio
(2)
Supplementary Leverage ratio (SLR)
(2)
Return on average common equity (ROE)
Citigroup
($ in millions, except per share amounts and as otherwise noted)
Income (loss) from continuing operations
Book value per share
Total revenues, net of interest expense
Total operating expenses
Total cost of credit
Citigroup's net income (loss)
Provision for income taxes
Income (loss) from discontinued operations, net of taxes
Net income attributable to non-controlling interest
EOP assets ($B)
EOP loans ($B)
EOP deposits ($B)
Income (loss) from continuing operations before taxes
3
tax rate was 14% in the current quarter versus 20% in the fourth quarter 2022, primarily driven by a different
geographic mix of pre-tax earnings in the current quarter.
total allowance for credit losses was approximately $21.8 billion at quarter end, compared to $19.4
billion at the end of the prior-year period. Total allowance for credit losses on loans was approximately $18.1 billion
at quarter end, compared to $17.0 billion at the end of the prior-year period, with a reserve-to-funded loans ratio
of 2.66%, compared to 2.60% at the end of the prior-year period. Total non-accrual loans increased 31% from the
prior-year period to $3.2 billion. Corporate non-accrual loans increased 68% to $1.9 billion. Consumer non-
accrual loans were largely unchanged at $1.3 billion.
-of-period loans were $689 billion at quarter end, up 5% versus the prior-year period, largely
reflecting growth in cards in USPB.
-of-period deposits were approximately $1.3 trillion at quarter end, down (4)% versus the prior-
year period. The decline in deposits was largely due to a reduction in Services reflecting quantitative tightening,
and a reduction in USPB and Wealth reflecting a shift of deposits to higher-yielding products.
per share of $98.71 and tangible book value per share of $86.19 at quarter end increased
5% and 6%, respectively, versus the prior-year period. The increases were largely driven by net income, common
share repurchases, and beneficial movements in the accumulated other comprehensive income (AOCI)
component of equity, partially offset by payment of common and preferred dividends.
CET1 Capital ratio was 13.3% versus 13.6% in the prior quarter, driven by the net loss for the period, higher deferred
tax assets, payment of common and preferred dividends, share repurchases, and higher risk-weighted assets,
partially offset by a benefit from the accumulated other comprehensive income (AOCI).
Leverage ratio for the fourth quarter 2023 was 5.8% versus 6.0% in the prior quarter. During the quarter, Citigroup
returned a total of $1.5 billion to common shareholders in the form of dividends and repurchases.
Services
Services revenues of $4.5 billion were up 6%, largely driven by higher net interest income across Treasury and
Trade Solutions (TTS) and Securities Services, partially offset by lower non-interest revenues driven by the
Argentina devaluation. Services non-interest revenues were up 20%, excluding the impact of the Argentina
devaluation.
Net ACL build / (release)
(a)
105 29 (18) NM NM 29 152 (81)%
Other provisions
(b)
547 39 1 NM NM 881 4 NM
Allocated Average TCE
(c)
23 23 23 - 2% 23 23 2%
RoTCE
(c)
13.4% 23.0% 24.1% (960) bps (1,070) bps 20.0% 21.7% (170) bps
Services
($ in millions, except as otherwise noted)
Total operating expenses
Total cost of credit
Net income (loss)
Services Key Statistics and Metrics ($B)
4
Treasury and Trade Solutions revenues of $3.4 billion increased 6%, driven by 13% growth in net interest income,
partially offset by a 20% decrease in non-interest revenues, driven by the impact of the Argentina devaluation.
The increase in net interest income was primarily driven by higher interest rates. The decline in non-interest
revenues was partially offset by an increase in cross-border flows of 23%, outpacing global GDP growth, and an
increase in U.S. Dollar clearing volumes of 5%.
Securities Services revenues increased 3%, driven by net interest income growth of 11%, partially offset by a 4%
decline in non-interest revenue, largely reflecting the Argentina devaluation. Citi also continued to onboard assets
under custody and administration, which increased 13%, or approximately $2.9 trillion.
Services operating expenses of $2.6 billion increased 9%, primarily driven by continued investments in
technology, product innovation and client experience.
Services cost of credit was $646 million, compared to $(10) million in the prior-year period, driven by a reserve
build of approximately $652 million, primarily associated with the transfer risk in Russia and Argentina.
Services net income of approximately $776 million decreased 43%, driven by the higher expenses and the higher
cost of credit, partially offset by the higher revenues.
Markets
Markets revenues of $3.4 billion decreased 19%, driven by a decline in Fixed Income, including the impact of the
devaluation, partially offset by an increase in Equity.
Fixed Income revenues of $2.6 billion decreased 25%, largely driven by rates and currencies on lower volatility
and a significant slowdown in December as well as the impact of the Argentina devaluation.
Equity revenues of $819 million increased 9%, driven by gains across all products, including derivatives, and the
business also benefited from growth in prime balances.
Markets operating expenses of $3.4 billion increased 8%, driven by investments in transformation and risk and
controls and volume related costs, partially offset by productivity savings.
Markets cost of credit was $209 million, compared to $39 million in the prior-year period, driven by a reserve
build of approximately $179 million, primarily associated with the transfer risk in Russia and Argentina.
Net ACL build / (release)
(a)
53 127 45 (58)% 18% 205 90 NM
Other provisions
(b)
126 40 (7) NM NM 200 70 NM
Allocated Average TCE
(c)
53 53 52 - 3% 53 52 3%
RoTCE
(c)
(1.0)% 8.0% 6.1% (900) bps (710) bps 7.4% 11.4% (400) bps
Markets
($ in millions, except as otherwise noted)
Total operating expenses
Total cost of credit
Net income (loss)
Markets Key Statistics and Metrics ($B)
Total Markets revenues
5
Markets net loss of $(134) million was driven by the higher expenses, the lower revenues and the higher cost of
credit in the quarter.
Banking
Banking revenues of $949 million increased 22%, driven by growth in Investment Banking fees and lower losses
on loan hedges, partially offset by lower Corporate Lending revenue.
Investment Banking revenues of $669 million increased 27%, driven by Debt Capital Markets (DCM) and
Advisory, partially offset by Equity Capital Markets (ECM). Investment Banking fees in Advisory increased 11%
versus the prior-year period, reflecting higher client activity. Investment Banking fees in DCM increased 43%,
driven by both non-investment and investment grade activity. Investment Banking fees in ECM decreased 17%
versus the prior-year period, driven by geopolitical concerns and general IPO market conditions.
Corporate Lending revenues of $411 million, excluding mark-to-market on loan hedges,
(8)
decreased 26% versus
the prior-year, largely driven by lower revenue share from Investment Banking, Services and Markets
(9)
.
Banking operating expenses of $1.2 billion increased 37%, primarily driven by the absence of an operational loss
reserve release in the prior year, as continued investments in talent and infrastructure were offset by productivity
savings.
Banking cost of credit was $185 million, compared to $27 million in the prior-year period, driven by a net reserve
build of approximately $114 million, primarily associated with the transfer risk in Russia and Argentina.
Banking net loss of $(322) million, was driven by the higher expenses and the higher cost of credit, partially offset
by the higher revenues.
Total Corporate Lending
(a)
411 698 553 (41)% (26)% 2,473 2,579 (4)%
Net ACL build / (release)
(b)
(225) (95) (81) NM NM (723) 423 NM
Other provisions
(c)
339 5 12 NM NM 389 20 NM
Allocated Average TCE
(d)
($B) 21 21 22 - (1)% 21 22 (1)%
RoTCE
(d)
(6.0)% 3.1% (1.0)% (910) bps (500) bps (0.2)% 1.8% (200) bps
Advisory fees ($B)
Equity underwriting fees ($B)
Debt underwriting fees ($B)
(a) Excludes gain / (loss) on credit derivatives as well as the mark-to-market on loans at fair value. For additional information, please refer to Footnote 8.
Banking
($ in millions, except as otherwise noted)
Total Banking revenues including gain/(loss) on loan hedges
Total cost of credit
Net income (loss)
Banking Key Statistics and Metrics
Total Banking revenues
(a)
6
US Personal Banking (USPB)
USPB revenues of $4.9 billion increased 12%, driven by higher net interest income due to loan growth in cards
and higher deposit spreads.
Branded Cards revenues of $2.6 billion increased 10%, driven by higher net interest margin and interest-earning
balance growth of 13%. Revenue also benefited from growth in new account acquisitions, up 8%, and spend
volumes, up 3%.
Retail Services revenues of $1.6 billion increased 15%, driven by higher net interest margin and interest-earning
balance growth of 11%, as well as lower partner payments due to higher net credit losses.
Retail Banking revenues of $684 million increased 15%, driven by higher deposit spreads, loan growth and
improved mortgage margins.
USPB operating expenses of $2.6 billion decreased 1%, primarily driven by lower non-volume related expenses,
partially offset by risk and control and business-led investments.
USPB cost of credit was $2.1 billion, compared to $1.7 billion in the prior-year period. The increase was largely
driven by higher net credit losses, which are now at pre-Covid levels, partially offset by a lower ACL build.
USPB net income of $201 million, was driven by the higher revenues and the lower expenses, partially offset by
the higher cost of credit.
4Q'23 3Q'23 4Q'22 QoQ% YoY% 2023 2022 %Δ
Branded Cards $2,620 $2,539 $2,389 3% 10% 9,988 8,962 11%
Retail Services 1,636 1,728 1,421 (5)% 15% 6,617 5,469 21%
Retail Banking 684 650 597 5% 15% 2,582 2,441 6%
4,940 4,917 4,407 - 12% 19,187 16,872 14%
2,594 2,481 2,609 5% (1)% 10,102 9,782 3%
Net credit losses 1,599 1,343 852 19% 88% 5,234 2,918 79%
Net ACL build / (release)
(a)
472 113 867 NM (46)% 1,465 516 NM
Other provisions
(b)
3 3 4 - (25)% 8 14 (43)%
2,074 1,459 1,723 42% 20% 6,707 3,448 95%
$201 $756 $54 (73)% NM 1,820 2,770 (34)%
Allocated average TCE
(c)
22 22 21 - 6% 22 21 6%
RoTCE
(c)
3.6% 13.7% 1.0% (1,010) bps 260 bps 8.3% 13.4% (510) bps
Average loans 202 196 180 3% 12% 193 171 13%
Average deposits 105 110 111 (5)% (5)% 110 115 (4)%
US cards average loans 158 153 143 3% 10%
US credit card spend volume
(d)
156 149 152 5% 2%
New account acquisitions (in 000s) 3,722 3,298 3,829 13% (3)%
Note: Please refer to the Appendices and Footnotes at the end of this press release for additional information.
(a) Includes credit reserve build / (release) for loans and provision for credit losses on unfunded lending commitments.
(b) Includes provisions on policholder benefits and claims and Other Assets.
(c) TCE and RoTCE are non-GAAP financial measures. See Appendix I for a reconciliation of the summation of the segments' and component's average allocated TCE.
(d) Credit card spend volume was previously referred to as card purchase sales.
USPB Key Statistics and Metrics ($B)
USPB
($ in millions, except as otherwise noted)
Total revenues, net of interest expense
Total operating expenses
Total cost of credit
Net income (loss)
7
Wealth
Wealth revenues of $1.7 billion decreased 3%, driven by lower deposit spreads, partially offset by lower mortgage
funding cost and higher investment fee revenues.
Private Bank revenues of $542 million decreased 10%, driven by lower deposit spreads and lower deposit and
loan volumes, partially offset by higher investment revenue.
Wealth at Work revenues of $211 million increased 8%, driven by higher mortgage and investment revenue,
partially offset by lower deposit revenue.
Citigold revenues of $918 million decreased 1%, as lower deposit spreads were partially offset by growth in
investment revenue globally and higher deposit revenue in Asia.
Wealth operating expenses of $1.6 billion increased 4%, largely driven by investments in risk and controls and
technology, partially offset by productivity savings.
Wealth cost of credit was $4 million, as net credit losses of $31 million were largely offset by an ACL release for
loans and unfunded commitments of $26 million.
Wealth net income was $5 million, as the lower revenues were largely offset by the higher expenses.
4Q'23 3Q'23 4Q'22 QoQ% YoY% 2023 2022 %Δ
Private Bank 542 617 599 (12)% (10)% 2,332 2,812 (17)%
Wealth at Work 211 234 195 (10)% 8% 862 730 18%
Citigold 918 1,004 929 (9)% (1)% 3,897 3,906 -
1,671 1,855 1,723 (10)% (3)% 7,091 7,448 (5)%
1,647 1,711 1,585 (4)% 4% 6,644 6,058 10%
Net credit losses 31 24 56 29% (45)% 98 103 (5)%
Net ACL build / (release)
(a)
(26) (27) (115) 4% 77% (97) 202 NM
Other provisions
(b)
(1) 1 2 NM NM (3) 1 NM
4 (2) (57) NM NM (2) 306 (101)%
$5 $118 $175 (96)% (97)% 346 950 (64)%
Allocated Average TCE
(c)
13 13 14 - (4)% 13 14 (4)%
RoTCE
(c)
0.1% 3.5% 5.0% (340) bps (490) bps 2.6% 6.8% (420) bps
Loans 152 151 149 1% 2%
Deposits 323 307 325 5% (1)%
Client investment assets
(d)
498 471 443 6% 12%
EoP client balances 973 929 917 5% 6%
Note: Please refer to the Appendices and Footnotes at the end of this press release for additional information.
(a) Includes credit reserve build / (release) for loans and provision for credit losses on unfunded lending commitments.
(b) Includes provisions on Other Assets and policyholder benefits and claims.
(c) TCE and RoTCE are non-GAAP financial measures. See Appendix I for a reconciliation of the summation of the segments' and component's average allocated TCE.
(d) Includes Assets under management, and trust and custody assets.
Wealth Key Statistics and Metrics ($B)
Wealth
($ in millions, except as otherwise noted)
Total revenues, net of interest expense
Total operating expenses
Total cost of credit
Net income (loss)
8
All Other (Managed Basis)
(10)
All Other (Managed Basis) revenues of $2.0 billion decreased 17%, driven by a decrease in net interest income of
29%, largely driven by higher funding costs in Corporate/Other and the closed exits and wind-downs, partially
offset by higher non-interest revenue.
Legacy Franchises (Managed Basis)
(10)
revenues of $1.7 billion decreased 7%, primarily driven by the closed exits
and wind-downs, partially offset by higher rates and volumes in Mexico and Mexican Peso appreciation.
Corporate / Other revenues decreased to $322 million from $609 million in the prior-year period, in part driven
by higher funding costs.
All Other (Managed Basis) expenses of $4.5 billion increased 92%, driven by the FDIC special assessment and
the restructuring charge, partially offset by lower expenses driven by the closed exits and wind-downs.
All Other (Managed Basis) cost of credit of $459 million, reflecting net credit losses of $236 million, an ACL build
for loans and unfunded commitments of $81 million and other provisions of $142 million.
All Other (Managed Basis) net loss of $(2.3) billion, was driven by the higher expenses, the lower revenues and
the higher cost of credit.
4Q'23 3Q'23 4Q'22 QoQ% YoY% 2023 2022 %Δ
Legacy Franchises (Managed Basis) 1,710 1,802 1,829 (5)% (7)% 7,198 7,467 (4)%
Corporate / Other 322 411 609 (22)% (47)% 2,165 1,521 42%
2,032 2,213 2,438 (8)% (17)% 9,363 8,988 4%
4,466 2,164 2,325 NM 92% 11,117 9,144 22%
Net credit losses 236 238 186 (1)% 27% 870 772 13%
Net ACL build / (release)
(c)
81 (24) (35) NM NM 106 (368) NM
Other provisions
(d)
142 (10) 13 NM NM 350 94 NM
459 204 164 NM NM 1,326 498 NM
$(2,254) $(109) $71 NM NM (2,107) 163 NM
Allocated Average TCE
(e)
32 33 27 - 22% 31 26 20%
Note: Please refer to the Appendices and Footnotes at the end of this press release for additional information.
(a) Includes Legacy Franchises and certain unallocated costs of global staff functions (including finance, risk, human resources, legal and compliance-related costs), other corporate expenses, and unallocated global
operations and technology expenses and income taxes, as well as Corporate Treasury investment activities and discontinued operations.
(b) Reflects results on a managed basis, which excludes divestiture-related impacts related to Citi's divestiture of its Asia consumer banking businesses and the planned divestiture of Mexico consumer banking and
small business and middle markets within Legacy Franchises. For additional information, please refer to Footnote 10.
(c) Includes credit reserve build / (release) for loans and provision for credit losses on unfunded lending commitments.
(d) Includes provisions on Other Assets and policyholder benefits and claims.
(e) TCE is a non-GAAP financial measures. See Appendix I for a reconciliation of the summation of the segments' and component's average allocated TCE.
All Other (Managed Basis)
(a)(b)
($ in millions, except as otherwise noted)
Total revenues
Total operating expenses
Total cost of credit
Net income (loss)
All Other Key Statistics and Metrics ($B)
9
Citigroup will host a conference call today at 12:00 PM (ET). A live webcast of the presentation, as well as
financial results and presentation materials, will be available at https://www.citigroup.com/global/investors.
The live webcast of the presentation can also be accessed at
https://www.veracast.com/webcasts/citigroup/webinars/Citi4Q23.cfm.
Additional financial, statistical and business-related information, as well as business and segment trends, is
Fourth Quarter
2023 Quarterly Financial Data Supple www.citigroup.com.
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth
management and a valued personal bank in its home market of the United States. Citi does business in nearly
160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals
with a broad range of financial products and services.
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
-
Litigation Reform Act of 19
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
objectives, including expense savings, from its transformation, strategic and other initiatives, which include
business and middle-market operations in Mexico, which involves significant execution uncertainty and
complexity and may result in higher than expected expenses, certain losses or other negative financial or
strategic impacts; a potential U.S. federal government shutdown and the resulting impacts; continued elevated
interest rates and the impacts on macroeconomic conditions, customer
funding costs; potential reductions in benchmark interest rates and the resulting impacts on net interest
income; potential recessions in the U.S., Europe and other regions or countries; revisions to the U.S. Basel III
rules, including the recently issued notice of proposed rulemaking, known as the Basel III Endgame, related to
the U.S. regulatory capital framework, and other proposed changes in regulatory capital rules; continued
elevated levels of inflation and its impacts; potential increased regulatory requirements and costs; the various
Middle East; impacts from any potential additional currency devaluations in Argentina; and the precautionary
2022 Form 10-K. Any forward-looking statements made by or on behalf of Citigroup speak only as to the date
they are made, and Citi 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.
Contacts:
Investors: Jennifer Landis (212) 559-2718
Press: Danielle Romero-Apsilos (212) 816-2264
10
Appendix A
Citigroup
($ in millions)
4Q23 3Q23 4Q22
Net Income (Loss)
$(1,839) $3,546 $2,513
Less: Preferred Dividends
300 333 238
Net Income (Loss) to Common Shareholders
$(2,139) $3,213 $2,275
Average Common Equity
$189,440 $189,158 $180,523
Less: Average Goodwill and Intangibles
(24,268) (23,831) (23,644)
Average Tangible Common Equity (TCE)
$165,172 $165,327 $156,879
ROE (4.5)% 6.7% 5.0%
RoTCE (5.1)% 7.7% 5.8%
Citigroup
($ in millions)
2023 2022
Net Income (Loss) $9,228 $14,845
Less: Preferred Dividends
1,198 1,032
Net Income (Loss) to Common Shareholders
$8,030 $13,813
Average Common Equity
$187,730 $180,093
Less: Average Goodwill and Intangibles
(24,374) (24,150)
Average Tangible Common Equity (TCE) $163,356 $155,943
ROE 4.3% 7.7%
RoTCE 4.9% 8.9%
Appendix B
(5)(6)(7)
Citigroup
($ in millions)
Total Citigroup Revenue - As Reported $17,440 $18,006
(3)%
Less:
Total Divestiture-related Impact on Revenue (62) 209
Devaluation of Argentine Peso Impact on Revenue (880) (289)
Total Citigroup Revenue, Excluding Impact of Total Divestiture-related and Devaluation of Argentine Peso $18,382 $18,086
2%
Total Citigroup Operating Expenses - As Reported $15,996 $12,985
23%
Less:
Total Divestiture-related Impact on Operating Expenses 106 58
FDIC Special Assessment Impact on Operating Expenses 1,706 -
Total Citigroup Operating Expenses, Excluding Impact of Total Divestiture-related and FDIC Special Assessment $14,184 $12,927
10%
Citigroup
($ in millions)
Total Citigroup Revenue - As Reported $78,462 $75,338
4%
Less:
Total Divestiture-related Impact on Revenue 1,346 854
Total Citigroup Revenue, Excluding Total Impact of Divestiture-related $77,116 $74,484
4%
2023
2022
% Δ YoY
4Q'23
4Q'22
% Δ YoY
11
Appendix C
(5)(6)
Services
($ in millions)
Services Non-interest Revenue - As Reported $1,075 $1,229
(13)%
Less:
Devaluation of Argentine Peso Impact on Revenue (579) (153)
Services Non-interest Revenue, Excluding Impact of Devaluation of Argentine Peso $1,654 $1,382
20%
4Q'23
4Q'22
% Δ YoY
Appendix D
(a)
All Other
($ in millions)
All Other Revenues, Managed Basis $2,032 $2,213 $2,438 (8)% (17)% $9,363 $8,988 4%
Add:
All Other Divestiture-related Impact on Revenue
(c)(d)(e)(g)
$(62) $396 $209 $1,346 $854
All Other Revenues, Including All Other Divestiture-related Impact $1,970 $2,609 $2,647 (24)% (26)% $10,709 $9,842 9%
All Other Operating Expenses, Managed Basis $4,466 $2,164 $2,325 NM 92% $11,117 $9,144 22%
Add:
All Other Divestiture-related Impact on Operating Expenses
(b)(f)(h)
$106 $114 $58 $372 $696
All Other Operating Expenses, Including All Other Divestiture-related Impact $4,572 $2,278 $2,383 101% 92% $11,489 $9,840 17%
All Other Cost of Credit, Managed Basis $459 $204 $164 NM NM $1,326 $498 NM
Add:
All Other Net credit losses 33 (19) (18) (6) (156)
All Other Net ACL build / (release)
(i)
(63) 2 (23) (61) 232
All Other Other provisions
(j)
- - - - -
All Other Citigroup Cost of Credit, Including All Other Divestiture-related Impact
$429 $187 $123
NM NM
$1,259 $574
NM
All Other Citigroup Net Income (Loss), Managed Basis $(2,254) $(109) $71 NM NM $(2,107) $163 NM
Add:
All Other Divestiture-related Impact on Revenue
(c)(d)(e)(g)
(62) 396 209 1,346 854
All Other Divestiture-related Impact on Operating Expenses
(b)(f)(h)
(106) (114) (58) (372) (696)
All Other Divestiture-related Impact on Cost of Credit 30 17 41 67 (76)
All Other Divestiture-related Impact on Taxes 27 (85) (79) (382) (266)
All Other Net Income (Loss), Including All Other Divestiture-related Impact $(2,365) $105 $184 NM NM $(1,448) $(21) NM
(i) Includes credit reserve build / (release) for loans and provision for credit losses on unfunded lending commitments
(j) Includes provisions for policyholder benefits and claims and other assets.
(h) 4Q23 includes approximately $106 million in expenses (approximately $75 million after-tax), primarily related to separation costs in Mexico and severance costs in Asia exit markets.
% Δ YoY
% Δ YoY
4Q'23
4Q'22
3Q'23
2023
2022
% Δ QoQ
(f) 2Q23 includes approximately $79 million in expenses (approximately $57 million after-tax), primarily related to separation costs in Mexico and severance costs in Asia exit markets. For additional information, see Citi's Quarterly Report on Form 10-Q
for the quarterly period ended June 30, 2023.
(g) 3Q23 includes an approximate $403 million gain on sale recorded in revenue (approximately $284 million after various taxes) related to Citi's sale of the Taiwan consumer banking business. For additional information, see Citi's Quarterly Report on
Form 10-Q for the quarterly period ended September 30, 2023.
(e) 1Q23 includes an approximate $1.059 billion gain on sale recorded in revenue (approximately $727 million after various taxes) related to Citi's sale of the India consumer banking business. For additional information, see Citi's Quarterly Report on
Form 10-Q for the quarterly period ended March 31, 2023.
(b) 1Q22 includes an approximate $535 million ($489 million after-tax) goodwill write-down due to re-segmentation and timing of Asia consumer banking business divestitures. For additional information, see Citi's Quarterly Report on Form 10-Q for
the quarterly period ended March 31, 2022.
(c) 3Q22 includes an approximate $616 million gain on sale recorded in revenue (approximately $290 million after various taxes) related to Citi's sale of the Philippines consumer banking business. For additional information, see Citi's Quarterly Report
on Form 10-Q for the quarterly period ended September 30, 2022
(d) 4Q22 includes an approximate $209 million (approximately $115 million after various taxes) gain on sale recorded in revenue related to Citi's sale of the Thailand consumer banking business. For additional information, see Citi's Annual Report on
Form 10-K for the annual period ended December 31, 2022.
12
Appendix E
($ in millions)
4Q'23
(1)
3Q'23 4Q'22
$187,937 $190,134 $182,325
208 193 128
1,514 1,514 2,271
(1,406) (1,259) (2,522)
(383) 625 1,441
18,778 18,552 19,007
3,349 3,444 3,411
1,317 1,340 1,935
11,580 11,219 12,197
2,936 1,786 325
Common Equity Tier 1 Capital (CET1)
$153,488 $156,134 $148,930
Risk-Weighted Assets (RWA)
(3)
$1,152,800 $1,148,550 $1,142,985
Common Equity Tier 1 Capital Ratio (CET1 / RWA)
(3)
13.3% 13.6% 13.0%
Note:
(1) Preliminary.
(2)
(3)
Please refer to Footnote 2 at the end of this press release for additional information.
(4)
(5)
(6)
Deferred tax assets (DTAs) arising from net operating loss, foreign tax credit
and general business credit carry-forwards
(5)
Defined benefit pension plan net assets; other
Accumulated net unrealized gains (losses) on cash flow hedges, net of tax
Cumulative unrealized net gain (loss) related to changes in fair value of financial
liabilities attributable to own creditworthiness, net of tax
Intangible Assets:
Goodwill,
net of related deferred tax liabilities (DTLs)
(4)
Identifiable intangible assets other than mortgage servicing rights (MSRs),
net of related DTLs
Citigroup Common Stockholders' Equity
(2)
Add: Qualifying noncontrolling interests
Regulatory Capital Adjustments and Deductions:
Add: CECL transition provision
(3)
Less:
Assets subject to 10% / 15% limitations include MSRs, DTAs arising from temporary differences and significant common stock investments in unconsolidated financial
institutions. For all periods presented, the deduction related only to DTAs arising from temporary differences that exceeded the 10% limitation.
Excess over 10% / 15% limitations for other DTAs, certain common stock
investments, and MSRs
(5)(6)
Excludes issuance costs related to outstanding preferred stock in accordance with Federal Reserve Board regulatory reporting requirements.
Represents deferred tax excludable from Basel III CET1 Capital, which includes net DTAs arising from net operating loss, foreign tax credit and general business credit tax
carry-forwards and DTAs arising from timing differences (future deductions) that are deducted from CET1 capital exceeding the 10% limitation.
Appendix F
($ in millions)
4Q'23
(1)
3Q'23 4Q'22
Common Equity Tier 1 Capital (CET1)
(2)
$153,488 $156,134 $148,930
Additional Tier 1 Capital (AT1)
(3)
18,909 20,744 20,215
Total Tier 1 Capital (T1C) (CET1 + AT1)
$172,397 $176,878 $169,145
Total Leverage Exposure (TLE)
(2)
$2,960,105 $2,927,392 $2,906,773
Supplementary Leverage Ratio (T1C / TLE)
5.8% 6.0% 5.8%
(1) Preliminary.
(2) Please refer to Footnote 2 at the end of this press release for additional information
(3) Additional Tier 1 Capital primarily includes qualifying noncumulative perpetual preferred stock and qualifying trust preferred securities.
Appendix G
($ and shares in millions)
4Q'23
(1)
3Q'23 4Q'22
Common Stockholders' Equity $187,853 $190,008 $182,194
Less:
Goodwill 20,098 19,829 19,691
Intangible Assets (other than MSRs) 3,730 3,811 3,763
Goodwill and Identifiable Intangible Assets (other than MSRs) Related to Assets Held-for-Sale - 49 589
Tangible Common Equity (TCE) $164,025 $166,319 $158,151
Common Shares Outstanding (CSO) 1,903.1 1,913.9 1,937.0
Tangible Book Value Per Share $86.19 $86.90 $81.65
(1) Preliminary.
13
Appendix H
All Other
($ in millions)
Corporate Lending Revenues - As Reported $280 $651 $253
(57)% 11%
Less:
Gain/(loss) on loan hedges
(8)
$(131) $(47) $(300)
NM 56%
Corporate Lending Revenues - Excluding Gain/(loss) on loan hedges $411 $698 $553 (41)% (26)%
% Δ YoY
4Q'23
3Q'23
4Q'22
% Δ QoQ
Appendix I
(1)
($ in billions)
4Q'23 3Q'23 4Q'22
Average Tangible Common Equity (TCE)
Services $23.0 $23.0 $22.5
Markets 53.1 53.1 51.6
Banking 21.4 21.4 21.7
USPB 21.9 21.9 20.7
Wealth 13.4 13.4 13.9
All Other 32.4 32.5 26.5
Total Citigroup Average TCE $165.2 $165.3 $156.9
Plus:
Average Goodwill 20.4 19.9 19.1
Average Intangible Assets (other than MSRs) 3.8 3.9 3.8
Average Goodwill and Identifiable Intangible Assets (other than MSRs) Related to Assets Held-for-Sale - 0.1 0.7
Total Citigroup Average Common Stockholders' Equity $189.4 $189.2 $180.5
(1) TCE and TBVPS are non-GAAP financial measures.
Appendix J
(5)(6)
Citigroup
($ in millions, except per share amounts)
Citigroup Diluted EPS - As Reported $(1.16)
Add:
Total Notable Items Impact on Diluted EPS
(a)
2.00
Citigroup Diluted EPS, Excluding Notable Items $0.84
(a) On a pre-tax basis the notable items total approximately $(4.7) billion and include the following items: FDIC special assessment of $(1.7) billion, restructuring charge of
$(0.8) billion, devaluation of Argentine peso of $(0.9) billion and transfer risk related to Russia and Argentina of $(1.3) billion. In total, on an after-tax basis the notable
items are $(3.8) billion.
4Q'23
14
(1)
allocated average tangible common equity (TCE) and return on average tangible
common equity (RoTCE) are non-GAAP financial measures. RoTCE represents annualized net income available
to common shareholders as a percentage of average TCE. For the components of these calculations, see
Appendix A. See Appendix G for a reconciliation of common equity to TCE. For a reconciliation of the summation
Appendix I.
(2)
Ratios as of December 31, 2023
Supplementary Leverage ratio (SLR) reflect certain deferrals based on the modified regulatory capital transition
provision related to the Current Expected Credit Losses (CECL) standard. Excluding these
CET1 Capital ratio and SLR as of December 31, 2023 would be 13.2% and 5.8%, respectively, on a fully reflected
basis. For Regulatory Capital Treatment Modified Transition
of the Current Expected Credit Losses Methodology 2022 Annual Report on Form 10-K. Certain
prior period amounts have been revised to conform with enhancements made in the current period.
E
SLR, see Appendix F.
(3)
repurchases divided by net
income available to common shareholders.
(4)
-GAAP financial measure. See Appendix G for a reconciliation
of common equity to tangible common equity and resulting calculation of tangible book value per share.
(5)
For additional information on the notable items, -K filed on January 10,
2024 with the U.S. Securities and Exchange Commission. Results of operations excluding the impact of these
notable items are non-GAAP financial measures. Citi believes the presentation of its results of operations and
financial condition excluding the impacts of these notable items provides a meaningful depiction of the
underlying fundamentals of its broader results for investors, industry analysts and others. For a reconciliation to
reported results, please refer to Appendix B and C. For a reconciliation to reported EPS, refer to appendix J.
(6)
Citi recorded an approximate $880 million translation loss in revenues in Argentina in the fourth quarter of
2023 due to the recent devaluation of the Argentine peso. This decrease in revenues impacted Services,
Markets, and Banking. The translation loss does not include net interest income of approximately $250 million
on
(7)
Fourth quarter 2023 results included divestiture-related impacts of $(138) million in earnings before taxes
(approximately $(111) million after-tax). This amount included $(62) million revenues from certain divestitures,
recorded in Other revenue, $106 million of aggregate divestiture-related costs, recorded in Operating expenses,
a $(30) million of divestiture-related credit costs, and related taxes of $(27) million.
Fourth quarter 2022 results included divestiture-related impacts of $192 million in earnings before taxes
(approximately $113 million after-tax). This amount included $209 million primarily related to the gain on sale
from certain divestitures, recorded in Other revenue, $58 million of aggregate divestiture-related costs, recorded
in Operating expenses, a $41 million benefit of divestiture-related credit costs, and related taxes of $79 million.
Results of operations excluding these divestiture-related impacts are non-GAAP financial measures. For
additional information and a reconciliation to reported results, please refer to Appendix B and D.
(8)
Credit derivatives are used to economically hedge a portion of the Corporate Lending portfolio that includes
both accrual loans and loans at fair value. Gain / (loss) 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. In the fourth quarter
2023, gain / (loss) on loan hedges included $(131) million related to Corporate Lending, compared to $(300)
million in the prior-year period. The fixed premium costs of these hedges are netted against the Corporate
Lending the impact of
15
gain / (loss) on loan hedges are non-GAAP financial measures. For a reconciliation to reported results, please
refer to Appendix H.
(9)
Certain revenues earned by Citi are subject to a revenue sharing agreement to Banking Corporate Lending
from Investment Banking and certain Markets and Services products sold to clients.
(10)
All Other (Managed Basis) reflects results on a managed basis, which excludes divestiture-related impacts, for
all periods, related to divestitures of its Asia consumer banking businesses and the planned divestiture of
Mexico consumer banking and small business and middle market banking within Legacy Franchises. Certain of
the results of operations of All Other (Managed Basis) and Legacy Franchises (Managed Basis) that exclude
divestiture-related impacts are non-GAAP financial measures. Citi believes the presentation of its results of
operations excluding these divestiture-related impacts provide a meaningful depiction of the underlying
fundamentals of its All Other (Managed Basis) and Legacy Franchises (Managed Basis) results for investors,
industry analysts and others, including increased transparency and clarity into operating results, improved
visibility into management decisions and their impacts on operational performance; enables better comparison
to peer companies; and allows Citi to provide a long-term strategic view of the category going forward. In
or its Chief Executive Officer, regularly reviews financial
information on a managed basis that excludes these divestiture-related impacts. For additional information and
a reconciliation of these results, please refer to Appendix D.