Citigroup Q4 2011 Net Income Declines

  Citigroup Reports Fourth Quarter 2011 Net Income of $1.2 Billion or $0.38
  Per Share(1), Compared to $1.3 Billion or $0.43 in Fourth Quarter 2010

 Fourth Quarter Revenues of $17.2 Billion Down 7% from the Prior Year Period

 Fourth Quarter Net Credit Losses Declined 40% from the Prior Year Period to
                                 $4.1 Billion

 Full Year 2011 Net Income of $11.3 Billion up 6% from $10.6 Billion in 2010

  Full Year 2011 Revenues of $78.4 Billion Compared to $86.6 Billion in 2010
           Driven by $6.4 Billion Decline in Citi Holdings Revenues

         Citicorp Loans of $465.4 Billion Grew 14% versus Prior Year

     Citi Holdings Loans of $181.8 Billion Declined 25% versus Prior Year

Full Year 2011 Net Credit Losses of $20.0 Billion Compared to $30.9 Billion in
                                     2010

Loan Loss Reserve Release of $1.5 Billion in Fourth Quarter, Down 35% from the
                              Prior Year Period

   Tier 1 Common of $115.1 Billion, Tier 1 Common Ratio Increased to 11.8%

Year-over-Year, Book Value Per Share up 8% to $60.78, Tangible Book Value Per
                          Share^(2) up 12% to $49.81

Business Wire

NEW YORK -- January 17, 2012

Citigroup Inc. today reported net income of $1.2 billion, or $0.38 per diluted
share, for the fourth quarter 2011 on revenues of $17.2 billion. This compared
to net income of $1.3 billion, or $0.43 per diluted share, in the fourth
quarter 2010 on revenues of $18.4 billion.

Citigroup 2011 full year net income was $11.3 billion on revenues of $78.4
billion, compared to net income of $10.6 billion on revenues of $86.6 billion
for the full year 2010.

Vikram Pandit, Citi’s Chief Executive Officer, said, "Overall, we made solid
progress in 2011. We increased our net income to $11.3 billion, up 6% from the
previous year, and reached key benchmarks in our consumer businesses, showing
our strategy is achieving results. Clearly, the macro environment has impacted
the capital markets and we will continue to right-size our businesses to match
the environment. With Citi Holdings assets at 12% after the transfer of retail
partner cards to Citicorp, we are increasingly focused on driving earnings
through our core franchise and beginning to return capital to our shareholders
this year."

The majority of the revenue decline in 2011 was driven by the ongoing
reduction in Citi Holdings assets, which declined approximately $90 billion
during the year to $269 billion. Citi Holdings 2011 revenues declined 33%, or
$6.4 billion, to $12.9 billion. Citicorp revenues for 2011 were $64.6 billion,
down 2%, or $1.0 billion, from 2010 as revenue growth in Regional Consumer
Banking (RCB) and Transaction Services was offset by declines in Securities
and Banking revenues.

Fourth quarter revenues included $(40) million for credit valuation adjustment
(CVA) and debt valuation adjustment (DVA), as credit spreads tightened during
the quarter^(3). CVA/DVA in the third quarter 2011 was $1.9 billion and in the
fourth quarter 2010 was $(1.1) billion. Full year CVA/DVA in 2011 was $1.8
billion compared to $(469) million in 2010. Excluding CVA/DVA, Citigroup
fourth quarter 2011 revenues were $17.2 billion, down 12% as compared to the
prior year period, and full year 2011 revenues were $76.5 billion, also a 12%
decline from full year 2010.

^(1) All per share numbers throughout this release reflect Citigroup’s
1-for-10 reverse stock split, which was effective May 6, 2011. Income
available for EPS purposes reflects deductions for preferred stock dividends
and restricted stock adjustments for employee plans.

^(2) Tangible book value per share is a non-GAAP financial measure. See
Appendix B for additional information on this metric.

^(3) For additional information on CVA/DVA, see Appendix A.

Citicorp revenues of $14.0 billion in the fourth quarter 2011 included $(74)
million of CVA/DVA compared to $(1.0) billion in the prior year period.
Excluding CVA/DVA, Citicorp revenues of $14.1 billion were 8% below the fourth
quarter 2010. The decline was largely due to lower revenues in Securities and
Banking, which, excluding CVA/DVA, were 29% below the prior year period and
more than offset a 1% growth in RCB revenues and 2% growth in Transaction
Services revenues from the prior year period.

Citi Holdings revenues of $2.8 billion in the fourth quarter 2011 were 30%
below the prior year period. The decline in CitiHoldings revenues was
principally due to the continuing reduction in assets, which decreased $90
billion, or 25%, from the end of 2010. Citi Holdings assets of $269 billion at
the end of the fourth quarter 2011 included approximately $45 billion related
to Citi’s retail partner cards business which, as previously announced, Citi
intends to transfer into Citicorp during the first quarter 2012. Citi Holdings
assets at the end of the fourth quarter represented approximately 14% of total
Citigroup assets, and less than 12% of Citi’s total assets after reflecting
the transfer of Citi retail partner cards.

Citigroup’s net income declined 11% from the fourth quarter 2010 to $1.2
billion in the fourth quarter 2011, reflecting a $1.2 billion decline in
year-over-year revenues, a $465 million increase in operating expenses and a
$470 million increase in the provision for taxes, which offset a $2.0 billion
improvement in the cost of credit from the prior year period. Compared to the
prior year, total cost of credit in the fourth quarter fell 41% to $2.9
billion. The improvement in credit costs was driven by a 40% decline in net
credit losses to $4.1 billion partially offset by a smaller release of credit
reserves of $1.5 billion. The credit reserve release reflects a lower level of
inherent losses remaining in the portfolio. Operating expenses increased 4%
from the prior year period to $12.9 billion. Fourth quarter 2011 expenses
included $557 million of legal and related costs and the previously announced
repositioning charge of $428 million. Additionally, as previously announced,
the $470 million increase in the provision for taxes includes a tax charge of
$300 million due to a write-down in the value of Japanese deferred tax assets
reflecting legislation in Japan that decreased the corporate income tax rate.
Citigroup's effective tax rate for the full year 2011 was 24.1%.

Citigroup’s total allowance for loan losses was $30.1 billion at quarter end,
or 4.7% of total loans. The $1.5 billion net release of credit reserves in the
quarter was down 35% from the prior year period. Credit reserve releases in
Citicorp of $699 million were $42 million lower than the prior year period as
additional credit reserve releases in North America RCB, largely related to
Citi-branded cards, were offset by credit reserve builds in international RCB
(Asia, Latin America and EMEA). Citi Holdings credit reserve releases fell
$743 million to $767 million as releases in Local Consumer Lending (LCL)
decreased, largely due to lower releases in the retail partner cards portfolio
and lower releases in the Special Asset Pool (SAP) where total loan levels and
charge-offs declined. Citigroup asset quality continued to improve as total
non-accrual assets fell 44% to $11.8 billion from fourth quarter 2010.
Corporate non-accrual loans fell 62% to $3.2 billion and consumer non-accrual
loans fell 26% to $8.0 billion. Consumer loans that were 90+ days delinquent,
excluding SAP, fell 30% versus the prior year period to $9.4 billion, or 2.3%
of consumer loans.

Citigroup’s capital levels and book value continued to increase versus the
prior year period. As of December 31, 2011, book value per share was $60.78
and tangible book value per share was $49.81, 8% and 12% increases,
respectively, versus December 31, 2010. Citigroup’s Tier 1 Capital Ratio was
13.6% and its Tier 1 Common Ratio was 11.8%.

 
CITIGROUP
                                                                                         
($ millions,
except per        4Q'11        3Q'11        4Q'10        QoQ%     YoY%         2011         2010    
share amounts)
                                                                                           
Citicorp            14,014       17,705       14,260     -21  %   -2   %       64,571       65,560
Citi Holdings       2,776        2,826        3,965      -2   %   -30  %       12,896       19,287
Corporate/Other     384          300          146        28   %   NM           886          1,754   
Total Revenues    $ 17,174     $ 20,831     $ 18,371     -18  %   -7   %     $ 78,353     $ 86,601  
                                                                                           
Expenses          $ 12,936     $ 12,460     $ 12,471     4    %   4    %     $ 50,658     $ 47,375  
                                                                                           
Net Credit          4,108        4,514        6,854      -9   %   -40  %       20,038       30,859
Losses
Loan Loss
Reserve             (1,468 )     (1,422 )     (2,252 )   3    %   -35  %       (8,214 )     (5,782 )
Build/(Release)
^(a)
Provision for
Benefits and        234          259          238        -10  %   -2   %       972          965     
Claims
Total Cost of     $ 2,874      $ 3,351      $ 4,840      -14  %   -41  %     $ 12,796     $ 26,042  
Credit
                                                                                           
Income from
Cont. Ops.        $ 1,364      $ 5,020      $ 1,060      -73  %   29   %     $ 14,899     $ 13,184  
Before Taxes
Provision for       157          1,278        (313   )   -88  %   NM           3,587        2,233
Income Taxes
                                                                                           
Income from
Continuing        $ 1,207      $ 3,742      $ 1,373      -68  %   -12  %     $ 11,312     $ 10,951
Operations
Net income
(loss) from         0            1            98         -100 %   -100 %       112          (68    )
Disc. Ops.
Non-Controlling     42           (28    )     162        NM       -74  %       148          281     
Interest
Citigroup Net     $ 1,165      $ 3,771      $ 1,309      -69  %   -11  %     $ 11,276     $ 10,602  
Income
                                                                                           
                                                                                           
Tier 1 Common       11.8   %     11.7   %     10.8   %
Ratio
Tier 1 Capital      13.6   %     13.5   %     12.9   %
Ratio
Return on           2.6    %     8.4    %     3.2    %
Common Equity
Book Value per    $ 60.78      $ 60.56      $ 56.15
Share
Tangible Book     $ 49.81      $ 49.50      $ 44.55
Value per Share
                                                                                           
(a) Includes provision for unfunded lending commitments

 
CITICORP
                                                                                       
(in millions of   4Q'11        3Q'11        4Q'10        QoQ%    YoY%        2011         2010    
dollars)
                                                                                         
Regional
Consumer            8,200        8,268        8,147      -1  %   1   %       32,585       32,374
Banking
Securities and      3,193        6,723        3,541      -53 %   -10 %       21,417       23,115
Banking
Transaction         2,621        2,714        2,572      -3  %   2   %       10,569       10,071  
Services
Total Revenues    $ 14,014     $ 17,705     $ 14,260     -21 %   -2  %     $ 64,571     $ 65,560  
                                                                                         
Expenses          $ 10,179     $ 9,778      $ 9,442      4   %   8   %     $ 39,620     $ 36,144  
                                                                                         
Net Credit          1,903        1,933        2,662      -2  %   -29 %       8,307        11,789
Losses
Loan Loss
Reserve             (699   )     (585   )     (741   )   19  %   -6  %       (3,452 )     (2,199 )
Build/(Release)
^(a)
Provision for
Benefits and        37           45           42         -18 %   -12 %       152          151     
Claims
Total Cost of     $ 1,241      $ 1,393      $ 1,963      -11 %   -37 %     $ 5,007      $ 9,741   
Credit
                                                                                         
Net Income        $ 2,062      $ 4,640      $ 2,421      -56 %   -15 %     $ 14,442     $ 14,711  
                                                                                         
                                                                                         
Revenues
North America       4,758        6,483        5,153      -27 %   -8  %       23,614       26,668
EMEA                2,409        3,555        2,053      -32 %   17  %       12,186       11,708
LATAM               3,343        3,381        3,434      -1  %   -3  %       13,552       12,748
Asia                3,504        4,286        3,620      -18 %   -3  %       15,219       14,436
                                                                                         
Net Income
North America       283          1,496        251        -81 %   13  %       4,076        3,591
EMEA                420          1,013        212        -59 %   98  %       3,147        3,050
LATAM               716          721          947        -1  %   -24 %       3,225        3,550
Asia                643          1,410        1,011      -54 %   -36 %       3,994        4,520
                                                                                         
                                                                                         
EOP Assets ($B)     1,320        1,364        1,284      -3  %   3   %
EOP Loans ($B)      465          444          407        5   %   14  %
EOP Deposits        797          776          760        3   %   5   %
($B)
                                                                                         
(a) Includes provision for unfunded lending commitments

Citicorp

Citicorprevenues of $14.0 billion in the fourth quarter 2011 decreased 2% from
the prior year period. Excluding CVA/DVA, Citicorp revenues fell 8% to $14.1
billion. Revenue growth in international RCB and Transaction Services were
more than offset by revenue declines in Securities and Banking and, to a
lesser extent, North AmericaRCB. Securities and Banking revenues declined 29%
(excluding CVA/DVA) from the prior year period, while North America RCB
revenues declined 2%. Revenues in international RCB grew 2% from the prior
year period (6% excluding the impact of foreign exchange translation into US
dollars (ex-FX)), while Transaction Services revenues grew 2%.

Citicorpnet income decreased 15% from the prior year period to $2.1 billion.
The decrease was primarily driven by an 11% decline in net income in
Transaction Services to $776 million, and a loss in Securities and Banking of
$163 million in the fourth quarter 2011, which were partially offset by an 8%
increase in net income in RCB to $1.4 billion.

Citicorpcost of credit in the fourth quarter 2011 fell 37% from the prior year
period to $1.2 billion. The decline was largely driven by a $759 million
decline in net credit losses to $1.9 billion that was partially offset by a
$42 million decrease in the release of credit reserves to $699 million. The
substantial majority of the reserve release was attributed to consumer loans,
largely Citi-branded cards, as credit quality across the consumer portfolio
continued to improve. Citicorp’s consumer loans 90+ days delinquent fell 22%
from the prior year period to $2.4 billion, and the 90+ days delinquent ratio
fell 27% to 0.98% of loans.

Citicorpoperating expenses increased 8% year-over-year to $10.2 billion,
largely driven by ongoing investments, repositioning charges and legal and
related expenses, offset by expense savings initiatives.

Citicorpend of period loans grew 14% versus the prior year period to $465
billion, with most of the growth coming from Latin America and Asia. Consumer
loans grew 7% to $247 billion and corporate loans grew 24% to $219 billion,
each versus the prior year period.

 
Regional Consumer Banking
                                                                                    
(in millions of   4Q'11       3Q'11       4Q'10       QoQ%    YoY%        2011         2010    
dollars)
                                                                                      
North America       3,494       3,418       3,555     2   %   -2  %       13,614       14,790
EMEA                332         363         379       -9  %   -12 %       1,479        1,503
LATAM               2,354       2,420       2,287     -3  %   3   %       9,483        8,685
Asia                2,020       2,067       1,926     -2  %   5   %       8,009        7,396   
Total Revenues    $ 8,200     $ 8,268     $ 8,147     -1  %   1   %     $ 32,585     $ 32,374  
                                                                                      
Expenses          $ 4,933     $ 4,753     $ 4,436     4   %   11  %     $ 18,933     $ 16,547  
                                                                                      
Net Credit          1,731       1,846       2,525     -6  %   -31 %       7,688        11,216
Losses
Loan Loss
Reserve             (609  )     (662  )     (551  )   -8  %   11  %       (2,985 )     (1,544 )
Build/(Release)
^(a)
Provision for
Benefits and        37          45          42        -18 %   -12 %       152          151     
Claims
Total Cost of     $ 1,159     $ 1,229     $ 2,016     -6  %   -43 %     $ 4,855      $ 9,823   
Credit
                                                                                      
Net Income        $ 1,449     $ 1,611     $ 1,338     -10 %   8   %     $ 6,196      $ 4,670   
                                                                                      
                                                                                      
Net Income
North America       661         692         403       -4  %   64  %       2,589        650
EMEA                (3    )     8           2         NM      NM          79           92
LATAM               376         344         426       9   %   -12 %       1,601        1,797
Asia                415         567         507       -27 %   -18 %       1,927        2,131
                                                                                      
                                                                                      
(in billions of
dollars)
Avg.
Citi-branded        110         110         111       0   %   -1  %
Card Loans
Avg. Retail         131         129         113       2   %   16  %
Banking Loans
Avg. Deposits       311         313         302       -1  %   3   %
Investment
Sales (Int'l        19          22          24        -12 %   -20 %
Only)
Cards Purchase      74          71          71        4   %   5   %
Sales
                                                                                      
(a) Includes provision for unfunded lending commitments

Regional Consumer Banking

RCB revenues of $8.2 billion grew 1% year-over-year. Revenue growth of 2% in
international RCB was offset by a 2% decline in North AmericaRCB.
International RCB revenues grew 6% versus the prior year period ex-FX.
Conversely, net income in international RCB declined 16% from the prior year
period to $788 million, while North AmericaRCB net income increased 64% to
$661 million, largely as a result of credit reserve builds internationally and
higher credit reserve releases and lower net credit losses in North America.

North AmericaRCB revenues declined 2% versus the prior year period to $3.5
billion. The decline reflected lower revenues in Citi-branded cards, due to a
3% decline in average loans coupled with continued pressure on net interest
margin and lower fees in banking that were partially offset by improved
results in mortgages.

North America RCB net income was $661 million, up 64% from the fourth quarter
2010. The growth in net income was driven by a $333 million increase in credit
reserve releases and a $718 million decrease in net credit losses versus the
prior year period. Operating expenses in the fourth quarter grew 31% from the
prior year period to $2.1 billion largely due to ongoing investment spending
in marketing and technology and an increase in litigation reserves in cards.

North AmericaRCB credit quality continued to improve as net credit losses fell
$718 million, or 41%, to $1.0 billion compared to the prior year period. Net
credit losses improved in both Citi-branded cards and retail banking.
Delinquency rates in both cards and retail banking also improved across
virtually all buckets versus the prior year period. The total net credit
reserve release in the fourth quarter was $681 million, $333 million higher
than the net credit reserve release in the fourth quarter 2010, largely driven
by Citi-branded cards.

International RCB revenues grew 2% to $4.7 billion versus the fourth quarter
2010. Revenue growth in Latin America (3%, 9% ex-FX) and in Asia (5%, 5%
ex-FX), more than offset a 12% (7% ex-FX) decline in EMEA revenues. Latin
America and Asia saw year-over-year growth in average loans, average deposits
and purchase sales.

International RCB net income fell 16% from the prior year period to $788
million due to a net credit reserve build of $72 million in the fourth quarter
2011 compared to a net release of $203 million in the prior year period, and
the impact of the Japan DTA write-down. Operating expenses in the fourth
quarter 2011 were essentially unchanged from the prior year period. Absent
repositioning, and legal and related charges taken in the fourth quarter 2011,
international RCB expenses declined. As a result, overall international RCB
produced positive operating leverage in the quarter, reflecting positive
operating leverage in both AsiaRCB and Latin AmericaRCB.

International RCB credit quality improved from the prior year period as net
credit losses fell 10% to $683 million. Credit reserves were built by $72
million in the fourth quarter 2011, compared to a release of $203 million in
the prior year period, as Asia, Latin America and EMEA all recorded reserve
builds, largely reflecting ongoing growth in loan portfolios. Overall credit
quality in international RCB continued to improve as delinquency rates in both
Citi-branded cards and retail banking were lower across all delinquency
buckets even as the underlying loan portfolios continued to grow.

 
Securities and Banking
                                                                                     
(in millions of   4Q'11       3Q'11       4Q'10        QoQ%    YoY%        2011         2010    
dollars)
                                                                                       
Investment          638         736         1,167      -13 %   -45 %       3,310        3,828
Banking
Lending             164         1,030       193        -84 %   -15 %       1,802        962
Equity Markets      240         634         596        -62 %   -60 %       2,756        3,501
Fixed Income        1,633       3,802       1,481      -57 %   10  %       12,263       14,077
Markets
Private Bank        519         557         501        -7  %   4   %       2,146        2,004
Other
Securities and      (1    )     (36   )     (397   )   97  %   100 %       (860   )     (1,257 )
Banking
Total Revenues    $ 3,193     $ 6,723     $ 3,541      -53 %   -10 %     $ 21,417     $ 23,115  
                                                                                       
Expenses          $ 3,740     $ 3,582     $ 3,682      4   %   2   %     $ 15,028     $ 14,693  
                                                                                       
Net Credit          178         70          134        NM      33  %       602          567
Losses
Credit Reserve
Build/(Release)     (109  )     104         (194   )   NM      -44 %       (486   )     (591   )
^(a)
Total Cost of     $ 69        $ 174       $ (60    )   -60 %   NM        $ 116        $ (24    )
Credit
                                                                                       
Net Income        $ (163  )   $ 2,137     $ 212        NM      NM        $ 4,858      $ 6,389   
                                                                                       
                                                                                       
CVA/DVA           $ (74   )   $ 1,888     $ (1,038 )                     $ 1,732      $ (399   )
                                                                                       
                                                                                       
Revenues
North America       660         2,445       1,009      -73 %   -35 %       7,558        9,393
EMEA                1,219       2,299       834        -47 %   46  %       7,221        6,849
LATAM               578         519         732        11  %   -21 %       2,364        2,547
Asia                736         1,460       966        -50 %   -24 %       4,274        4,326
                                                                                       
Income from
Continuing Ops.
North America       (450  )     666         (204   )   NM      NM          1,011        2,465
EMEA                162         737         (69    )   -78 %   NM          2,008        1,805
LATAM               199         208         344        -4  %   -42 %       978          1,091
Asia                (50   )     526         186        NM      NM          898          1,138
                                                                                       
(a) Includes provision for unfunded lending commitments

Securities and Banking

Securities and Banking revenues declined 10% from the prior year period to
$3.2 billion. While the fourth quarter 2011 had $(74) million of CVA/DVA, the
prior year period had CVA/DVA of $(1.0) billion. Excluding CVA/DVA, Securities
and Banking revenues declined 29% from the prior year period, reflecting lower
revenue in Fixed Income Markets, Equity Markets and Investment Banking.

Fixed Income revenues of $1.7 billion in the fourth quarter 2011 (excluding
$(84) million of CVA/DVA) declined 25% from the prior year period. The fourth
quarter reflected ongoing market fears of the European sovereign debt crisis
and its potential impact on other markets and the global economy. Those
concerns led to broad de-risking by clients and declines in client activity as
well as market volumes around the world. Citi also continued to maintain a
conservative risk profile during the quarter, while remaining focused on
serving the needs of its clients. The decline in Fixed Income revenues from
the prior year period largely reflected significantly lower results in credit
products and securitized products that were partially offset by revenue growth
in rates and currencies, especially in local emerging markets.

Equity Markets revenues of $240 million in the fourth quarter 2011 included $8
million of CVA/DVA. Excluding CVA/DVA, equity revenues fell 71% year-over-year
to $232 million. Equity market volumes declined in the fourth quarter as
clients broadly reduced activity levels in the face of market uncertainty. The
difficult market conditions in the fourth quarter drove significant declines
in derivatives revenues and, to a lesser degree, declines in revenues in cash
equities.

Investment Banking revenues declined 45% from the prior year period to $638
million as revenues in advisory, debt underwriting and equity underwriting all
fell. The decline in revenues was driven by lower volumes in mergers and
acquisitions and equity issuance and continued low volumes in bond
underwriting globally, reflecting the continued difficult and uncertain market
conditions.

Lending revenues declined 15% from the prior year period to $164 million, due
primarily to a loss on hedges as credit spreads narrowed during the quarter.

Securities and Banking produced a loss of $163 million in the fourth quarter
reflecting lower revenues and higher expenses, particularly repositioning
charges taken in the fourth quarter.

 
Transaction Services
                                                                                
(in millions of   4Q'11       3Q'11       4Q'10     QoQ%    YoY%        2011       2010    
dollars)
                                                                                  
Treasury and        1,962       1,950       1,841   1   %   7   %       7,688      7,298
Trade Solutions
Securities and      659         764         731     -14 %   -10 %       2,881      2,773   
Fund Services
Total Revenues    $ 2,621     $ 2,714     $ 2,572   -3  %   2   %     $ 10,569   $ 10,071  
                                                                                  
Expenses          $ 1,506     $ 1,443     $ 1,324   4   %   14  %     $ 5,659    $ 4,904   
                                                                                  
Net Credit          (6    )     17          3       NM      NM          17         6
Losses
Loan Loss
Reserve             19          (27   )     4       NM      NM          19         (64    )
Build/(Release)
^(a)
Total Cost of     $ 13        $ (10   )   $ 7       NM      86  %     $ 36       $ (58    )
Credit
                                                                                  
Net Income        $ 776       $ 892       $ 871     -13 %   -11 %     $ 3,388    $ 3,652   
                                                                                  
                                                                                  
Average
Deposits ($ in    $ 368       $ 365       $ 353     1   %   4   %     $ 363      $ 333
billions)
EOP Assets
Under Custody     $ 12.5      $ 12.5      $ 12.6    0   %   -1  %
($ in
trillions)
                                                                                  
                                                                                  
Revenues
North America       604         620         589     -3  %   3   %       2,442      2,485
EMEA                858         893         840     -4  %   2   %       3,486      3,356
LATAM               411         442         415     -7  %   -1  %       1,705      1,516
Asia                748         759         728     -1  %   3   %       2,936      2,714
                                                                                  
Income from
Continuing Ops.
North America       75          121         85      -38 %   -12 %       447        529
EMEA                286         289         296     -1  %   -3  %       1,142      1,225
LATAM               141         169         177     -17 %   -20 %       645        664
Asia                279         318         319     -12 %   -13 %       1,173      1,255
                                                                                  
(a) Includes provision for unfunded lending commitments

Transaction Services

Transaction Servicesrevenues were $2.6 billion, up 2% from the prior year
period, driven largely by 7% year-over-year growth in Treasury and Trade
Solutions (TTS), which was partially offset by a 10% decline in revenues in
Securities and Fund Services (SFS). TTS revenue growth reflected strong growth
in average assets, while the decline in SFS revenues reflected lower volumes,
reduced spreads and the impact of FX.

Transaction Servicesnet income of $776 million fell 11% from the fourth
quarter 2010, reflecting continued spread compression and a 14% increase in
operating expenses to $1.5 billion primarily due to investment spending,
severance, and legal and related charges.

Transaction Services average deposits and other customer liabilities balances
grew 4% year-over-year to $368 billion, and assets under custody fell 1% to
$12.5 trillion. The decline in assets under custody was largely related to the
impact of foreign exchange.

 
CITI HOLDINGS
                                                                                     
(in millions of   4Q'11       3Q'11       4Q'10        QoQ%    YoY%        2011         2010    
dollars)
                                                                                       
Brokerage and
Asset               43          55          136        -22 %   -68 %       282          609
Management
Local Consumer      2,967       2,998       3,403      -1  %   -13 %       12,067       15,826
Lending
Special Asset       (234  )     (227  )     426        -3  %   NM          547          2,852   
Pool
Total Revenues    $ 2,776     $ 2,826     $ 3,965      -2  %   -30 %     $ 12,896     $ 19,287  
                                                                                       
Expenses          $ 2,189     $ 2,104     $ 2,379      4   %   -8  %     $ 8,516      $ 9,615   
                                                                                       
Net Credit          2,205       2,581       4,191      -15 %   -47 %       11,731       19,070
Losses
Loan Loss
Reserve             (767  )     (838  )     (1,510 )   -8  %   -49 %       (4,761 )     (3,582 )
Build/(Release)
^(a)
Provision for
Benefits and        196         215         196        -9  %   0   %       820          813     
Claims
Total Cost of     $ 1,634     $ 1,958     $ 2,877      -17 %   -43 %     $ 7,790      $ 16,301  
Credit
                                                                                       
Net Income        $ (806  )   $ (802  )   $ (1,019 )   0   %   21  %     $ (2,434 )   $ (4,263 )
(Loss)
                                                                                       
                                                                                       
Net Income
(Loss)
Brokerage and
Asset               (92   )     (90   )     (58    )   -2  %   -59 %       (295   )     (237   )
Management
Local Consumer      (697  )     (585  )     (1,104 )   -19 %   37  %       (2,627 )     (4,996 )
Lending
Special Asset       (17   )     (127  )     143        87  %   NM          488          970
Pool
                                                                                       
                                                                                       
EOP Assets ($
in billions)
Brokerage and
Asset               27          26          27         4   %   0   %
Management
Local Consumer      201         218         252        -8  %   -20 %
Lending
Special Asset       41          45          80         -9  %   -49 %
Pool
                                                                                       
                                                                                       
EOP Loans ($B)      182         194         242        -6  %   -25 %
EOP Deposits        64          71          79         -9  %   -19 %
($B)
                                                                                       
(a) Includes provision for unfunded lending commitments

Citi Holdings

Citi Holdings revenues decreased 30% from the prior year period to $2.8
billion as assets declined 25% to $269 billion. Lower revenues in LCL and
negative revenues in SAP drove the lower results in Citi Holdings. LCL
revenues of $3.0 billion fell 13% from the prior year period primarily due to
the 21% decline in average loans to $183 billion. SAP revenues fell $660
million from the prior year period to $(234) million, primarily due to lower
net interest revenue. The decline in net interest revenue reflects the
decrease in interest earning assets as total assets declined 49%
year-over-year to $41 billion. Brokerage and Asset Management revenues were
$43 million, compared to $136 million in the prior year period, largely
reflecting a decline in the equity contribution from the Morgan Stanley Smith
Barney joint venture.

Citi Holdings net loss of $806 million decreased 21% from the prior year
period. Operating expenses decreased 8% to $2.2 billion and credit costs fell
43% to $1.6 billion. The decline in operating expenses reflected lower assets
resulting from divestitures and run off, partially offset by higher legal and
related costs.

Citi Holdings cost of credit decreased by $1.2 billion, or 43%, year-over-year
to $1.6 billion, driven by a 47% reduction in net credit losses to $2.2
billion, partially offset by a 49% reduction in the credit reserve release to
$767 million. Credit improved in LCL with net credit losses declining 38% from
the prior year period to $2.2 billion, partially offset by a 32% decrease in
the credit reserve release to $530 million. Improvement in net credit losses
was reflected across international, North America retail partner cards and
North America real estate lending portfolios in LCL. Year-over-year cost of
credit in SAP also improved as a $593 million reduction in net credit losses
was partially offset by a $487 million, or 67%, reduction in the loan loss
reserve release. SAP net credit losses in the fourth quarter 2011 were $(23)
million and the net loan loss reserve release was $236 million.

Citi Holdings allowance for credit losses was $17.5 billion at the end of the
fourth quarter 2011, or 9.6% of loans. Delinquencies for LCL improved from the
prior year period, as 90+ day delinquent loans decreased 32% to $7.0 billion,
or 4.2% of loans.

Corporate/Other

Corporate/Other revenues increased $238 million year-over-year to $384
million, largely reflecting the impact of hedging activities partly offset by
lower investment yields and lower gains on sales of AFS securities.

Corporate/Other net loss was $77 million, compared to a loss of $188 million
in the prior year period.

 
RESULTS BY REGION AND SEGMENT
                                                                      
              Revenues                         Income from Continuing Ops.
(in
millions of   4Q'11      3Q'11      4Q'10      4Q'11       3Q'11       4Q'10
dollars)
                                                                        
North
America
Regional
Consumer        3,494      3,418      3,555      661         692         403
Banking
Securities      660        2,445      1,009      (450  )     666         (204  )
and Banking
Transaction     604        620        589        75          121         85     
Services
Total North   $ 4,758    $ 6,483    $ 5,153    $ 286       $ 1,479     $ 284
America
                                                                        
EMEA
Regional
Consumer        332        363        379        (6    )     9           2
Banking
Securities      1,219      2,299      834        162         737         (69   )
and Banking
Transaction     858        893        840        286         289         296    
Services
Total EMEA    $ 2,409    $ 3,555    $ 2,053    $ 442       $ 1,035     $ 229
                                                                        
Latin
America
Regional
Consumer        2,354      2,420      2,287      377         344         426
Banking
Securities      578        519        732        199         208         344
and Banking
Transaction     411        442        415        141         169         177    
Services
Total Latin   $ 3,343    $ 3,381    $ 3,434    $ 717       $ 721       $ 947
America
                                                                        
Asia
Regional
Consumer        2,020      2,067      1,926      415         567         507
Banking
Securities      736        1,460      966        (50   )     526         186
and Banking
Transaction     748        759        728        279         318         319    
Services
Total Asia    $ 3,504    $ 4,286    $ 3,620    $ 644       $ 1,411     $ 1,012
                                                                        
Citicorp      $ 14,014   $ 17,705   $ 14,260   $ 2,089     $ 4,646     $ 2,472  
                                                                        
Citi          $ 2,776    $ 2,826    $ 3,965    $ (805  )   $ (795  )   $ (911  )
Holdings
                                                                        
Corporate /   $ 384      $ 300      $ 146      $ (77   )   $ (109  )   $ (188  )
Other
                                                                        
Citigroup     $ 17,174   $ 20,831   $ 18,371   $ 1,207     $ 3,742     $ 1,373  

 
FULL YEAR RESULTS BY REGION AND SEGMENT
                                                              
                            Revenues              Income from Cont. Ops.
(in millions of dollars)      2011       2010       2011         2010    
                                                                
North America
Regional Consumer Banking     13,614     14,790     2,589        650
Securities and Banking        7,558      9,393      1,011        2,465
Transaction Services          2,442      2,485      447          529     
Total North America         $ 23,614   $ 26,668   $ 4,047      $ 3,644
                                                                
EMEA
Regional Consumer Banking     1,479      1,503      79           91
Securities and Banking        7,221      6,849      2,008        1,805
Transaction Services          3,486      3,356      1,142        1,225   
Total EMEA                  $ 12,186   $ 11,708   $ 3,229      $ 3,121
                                                                
Latin America
Regional Consumer Banking     9,483      8,685      1,601        1,789
Securities and Banking        2,364      2,547      978          1,091
Transaction Services          1,705      1,516      645          664     
Total Latin America         $ 13,552   $ 12,748   $ 3,224      $ 3,544
                                                                
Asia
Regional Consumer Banking     8,009      7,396      1,927        2,131
Securities and Banking        4,274      4,326      898          1,138
Transaction Services          2,936      2,714      1,173        1,255   
Total Asia                  $ 15,219   $ 14,436   $ 3,998      $ 4,524
                                                                
Citicorp                    $ 64,571   $ 65,560   $ 14,498     $ 14,833  
                                                                
Citi Holdings               $ 12,896   $ 19,287   $ (2,315 )   $ (4,056 )
                                                                
Corporate / Other           $ 886      $ 1,754    $ (871   )   $ 174     
                                                                
Citigroup                   $ 78,353   $ 86,601   $ 11,312     $ 10,951  

Citi will host a conference call today at 10:30 AM (EST). A live webcast of
the presentation, as well as financial results and presentation materials,
will be available at http://www.citigroup.com/citi/fin. Dial-in numbers for
the conference call are as follows: (866) 516-9582 in the U.S.; (973) 409-9210
outside of the U.S. The conference code for both numbers is 35521408.

Citi, the leading global financial services company, 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://new.citi.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 the Fourth Quarter 2011 Quarterly
Financial Data Supplement are available on Citigroup’s website at
www.citigroup.com or www.citi.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 2010
Annual Report on Form 10-K.

 
Appendix A: CVA/DVA
                                                                     
(In millions of         4Q'11      3Q'11     4Q'10          2011        2010  
dollars)
Securities and
Banking
DVA on Citi
Liabilities at Fair       43         1,574     (795   )     1,746       (579 )
Value Option
Derivatives CVA           (116 )     314       (244   )     (14   )     179   
^(1,2)
Total Securities and    $ (74  )   $ 1,888   $ (1,038 )   $ 1,732     $ (399 )
Banking CVA/DVA
                                                                       
Special Asset Pool
DVA on Citi
Liabilities at Fair       (2   )     32        (11    )     28          (10  )
Value Option
Derivatives CVA ^(1)      36         19        (52    )     46          (59  )
Total Special Asset     $ 34       $ 50      $ (63    )   $ 74        $ (69  )
Pool CVA/DVA
Total Citigroup         $ (40  )   $ 1,938   $ (1,102 )   $ 1,806     $ (469 )
CVA/DVA
(1) Net of hedges.
(2) Includes Private
Bank.
Note: Totals may not
sum due to rounding

 
Appendix B: Non-GAAP Financial Measures
                                                                 
($ millions, except per share amounts)                            Preliminary
                                                                    12/31/2011
                                                                   
Citigroup's Total Stockholders' Equity                            $ 178,015
Less: Preferred Stock                                               312
Common Stockholders' Equity                                         177,703
Less:
Goodwill                                                            25,413
Intangible Assets (other than Mortgage Servicing Rights)            6,600
Net Deferred Tax Assets Related to Goodwill and Intangible          44
Assets
Tangible Common Equity (TCE)                                      $ 145,646
                                                                   
Common Shares Outstanding at Quarter-end                            2,923.9
                                                                   
Tangible Book Value Per Share                                     $ 49.81
(Tangible Common Equity / Common Shares Outstanding)

Contact:

Citigroup Inc.
Press:
Jon Diat, 212-793-5462
Shannon Bell, 212-793-6206
Anu Ahluwalia, 212-559-4114
or
Equity Investors:
John Andrews, 212-559-2718
or
Fixed Income Investors:
Ilene Fiszel Bieler, 212-559-5091
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