SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
Date of Report (Date of earliest event reported): July 19,
1994
CITICORP
(Exact name of registrant as specified in charter)
Delaware 1-5738 13-2614988
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) Number)
399 Park Avenue, New York, New York 10043
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (212)559-1000
Not Applicable
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
On July 19, 1994 Citicorp reported net income of $877
million in the 1994 second quarter.
John S. Reed, Citicorp Chairman, commented: "The quarter was
highlighted by strong earnings and significant strengthening of
our balance sheet, with total capital and capital ratios
improving, loan loss reserves increasing by over $400 million and
commercial nonperforming assets dropping by $1.3 billion.
"The company's core business is solid. Trading was better
than in the first quarter but still weak. Revenues from other
sources were up from a year ago and approximately even with the
first quarter. Costs are under control. And the general credit
picture is importantly improved.
"The solid operating results combined with the refinancing
agreement reached with Brazil, some asset gains, and tax benefits
flowing from FAS 109 to produce the strong quarter."
The 1994 second quarter net income of $877 million compared
with $446 million in the same 1993 quarter. Fully diluted net
income per common share of $1.64 compared with $0.82 in the year-
earlier quarter. Net income in the first half of 1994 was
$1.4 billion, or $2.66 per share, compared with $1.1 billion, or
$2.06 per share, in the same 1993 half-year.
Mr. Reed noted that the company continued to build capital,
with total regulatory capital at June 30, 1994 at $24.5 billion,
estimated to be 11.6% of risk-adjusted assets, and the Tier 1
capital ratio increasing to an estimated 7.1% from 6.9% at the
1994 first quarter-end. A year earlier the total capital ratio
was 10.3% and the Tier 1 ratio was 5.7%.
Revenues in the quarter (adjusted for credit-related costs,
the effect of credit card securitization and net asset gains)
totaled $4.2 billion, up modestly from $4.1 billion in the 1994
first quarter but below the 1993 second quarter's $4.4 billion.
Excluding securities and foreign exchange trading, revenues were
$4.1 billion in the 1994 second quarter, up 6% from $3.8 billion
in the same 1993 quarter.
Trading in the second quarter amounted to $159 million, up
from $71 million in the 1994 first quarter but sharply down from
$572 million in the second quarter of last year.
Operating expenses (excluding OREO costs) were $2.5 billion,
slightly higher than the $2.4 billion recorded in both the 1994
first quarter and the 1993 second quarter.
The second quarter net income included recognition of
$150 million of deferred tax benefits and net pretax gains of
$117 million ($74 million after tax) from net asset gains. These
included recognition as other revenue of $173 million
representing the fair value of interest bonds received in
connection with the Brazil refinancing agreement concluded in the
quarter, and recognition as investment securities gains of
$71 million from the sale of Brazilian interest bonds received in
a previous restructuring, offset by writedowns of $157 million in
the value of Latin American investments. Such items in
comparative quarters amounted to a net gain of $23 million
($14 million after tax) in the first quarter of 1994 and a net
loss of $25 million ($14 million after tax) in the second quarter
of 1993.
As a result of the Brazil refinancing agreement, Citicorp
received approximately $1.4 billion in market value of Brazilian
bonds for Brazilian debt that was carried on Citicorp's books at
$818 million and a new money investment of $221 million. Upon
receipt of the bonds, Citicorp recorded a credit recovery of
$318 million to its loan loss reserve in recognition of their
market value, in accordance with Financial Accounting Standard
No. 115, "Accounting for Certain Investments in Debt and Equity
Securities." (Citicorp's accounting treatment recognized the
economic effects of the Brazil refinancing agreement in the loan
loss reserve and other revenue.)
Loan loss reserves increased to a total of $4.9 billion at
June 30, 1994, up from $4.5 billion at the end of the first
quarter. The increase included the recovery of $318 million
arising from receipt of Brazilian bonds noted above. In
addition, a $90 million provision in excess of net credit losses
was added to the reserves. Citicorp no longer reports a separate
portion of the reserves attributed to refinancing countries,
which is combined with the commercial reserve.
Commercial cash-basis loans and Other Real Estate Owned
together declined in the quarter by $1.3 billion to $4.7 billion.
Of the reduction, $818 million resulted from Brazilian loans
having been exchanged for marketable securities. Commercial
credit costs were $73 million, up slightly from $60 million in
the 1994 first quarter, but sharply below $297 million in the
1993 second quarter. Consumer credit costs decreased in the
quarter, totaling $585 million, compared with $614 million in the
1994 first quarter and $708 million in the 1993 second quarter.
CORE BUSINESS RESULTS
Global Consumer
The Global Consumer businesses earned $411 million in the
second quarter, a 39% increase over the $296 million earned in
the comparable 1993 quarter. The consumer business in North
America continued to benefit from an improving credit profile in
the U.S. card portfolio, and the emerging economies displayed
solid revenue momentum in both the branch and cards businesses.
The Global Consumer businesses earned $838 million in the first
half of 1994, an increase of $251 million or 43% from the 1993
first half.
Net income in the North America, Europe and Japan consumer
businesses was $250 million in the quarter, compared with
$168 million in last year's second quarter. Net income in the
emerging economies was $161 million, compared with $128 million
in the 1993 second quarter.
Adjusted revenues in the second quarter of $2.7 billion were
up 3% from last year on the strength of an 18% increase in the
emerging economies. Revenues in North America, Europe and Japan
declined slightly as good results in European branches were
overshadowed by the effect of competitive pricing strategies in
the U.S. credit card business.
Operating expenses rose 2% from the second quarter of last
year as cost containment efforts, particularly in the United
States and Europe, partially offset continued business expansion
in the emerging economies.
Total consumer credit costs (principally adjusted for the
effect of credit card securitization) declined by $123 million
from the 1993 second quarter, primarily reflecting continued
improvement in the U.S. credit card portfolio. Consumer loans on
the balance sheet that are delinquent 90 days or more fell to
$3.4 billion from $3.5 billion at the end of the 1994 first
quarter and from $3.8 billion at June 30, 1993.
Global Finance
The Global Finance businesses reported net income of
$285 million in the second quarter, compared with $440 million in
the 1993 second quarter. Year-to-date earnings totaled
$549 million, down from $820 million reported for the first half
of 1993.
Trading-related activities were the principal factor in the
revenue decline from 1993. Customer demand continued, reflecting
positively on the derivatives business, but securities and
foreign exchange trading was hampered by difficult markets.
Reflecting the lower trading results, the Global Finance
businesses in North America, Europe and Japan had net income of
$102 million in the second quarter and $194 million year-to-date,
compared with $235 million and $464 million in the respective
1993 periods.
The businesses in emerging economies reported net income of
$183 million in the second quarter, compared with $205 million in
the same 1993 quarter, reflecting lower trading revenues in Latin
America and Asia. Year-to-date earnings from emerging economies
were on par with last year's results, totaling $355 million and
$356 million in the six-month periods of 1994 and 1993,
respectively.
Global Finance adjusted revenues were $1.3 billion in the
second quarter and $2.5 billion in the first half-year, down 20%
and 19% from the respective 1993 periods.
Second quarter operating expenses of $824 million rose 3%
from both the 1994 first quarter and the 1993 second quarter,
largely related to continued business expansion in the emerging
economies.
Gains from the sale of OREO properties contributed to a
positive net credit amount of $8 million in the second quarter,
compared with a $46 million charge in the same 1993 period. In
the 1994 six-month period, positive net credit amounts totaled
$66 million, compared with net charges of $115 million in the
first six months of 1993. Cash-basis loans at June 30, 1994 of
$581 million compared with $699 million at the end of the 1994
first quarter and with $1.3 billion at the end of the year-ago
second quarter.
OTHER AREAS
North America Commercial Real Estate
North America Commercial Real Estate reported continued
progress in dealing with its portfolio. Cash-basis loans and
OREO together declined to $3.4 billion, a decrease of $343
million from the end of the 1994 first quarter and $1.9 billion
from the end of the 1993 second quarter. This improvement
resulted from multiple initiatives, including restructurings,
sales, write-offs, writedowns and paydowns.
Cash-basis loans of $1.5 billion were down from $1.7 billion
at the 1994 first quarter-end and from $2.5 billion at the end of
the same 1993 quarter. OREO totaled $1.9 billion at the close of
the 1994 second quarter, down from $2.1 billion at the end of the
first quarter and $2.8 billion at the end of the 1993 second
quarter.
Total exposure was reduced by approximately $1.0 billion
during the quarter, to $11.7 billion, down $3.9 billion from the
1993 second quarter.
North America Commercial Real Estate reported a second
quarter net loss of $72 million, a significant improvement from
the $182 million loss reported in the 1993 second quarter,
reflecting lower credit costs. Write-offs and writedowns were
$75 million, down from $104 million in the 1994 first quarter and
from $201 million in the 1993 second quarter.
Cross-Border Refinancing Portfolio
The principal effects of the completion of the Brazil
financing agreement were noted earlier.
The cross-border refinancing portfolio reported net income
of $53 million in the second quarter, which included $47 million
of interest from Brazil and a $10 million release of reserves.
Prior-year second quarter net income was $12 million, with
$6 million of Brazil interest payments and no release of
reserves.
Cash-basis loans totaled $165 million at the end of the
second quarter, compared with $991 million at the 1994 first
quarter-end and $1.1 billion at the end of the 1993 second
quarter.
TAXES
Income tax expense of $245 million for the quarter included
$395 million related to current operations, less a $150 million
reduction of the deferred tax asset valuation allowance because
of reassessment of the expected level and mix of future earnings.
The taxes related to current operations bring the effective rate
for the first six months to 37%, compared with 39% for the first
quarter of 1994 and 43% for the first six months of 1993.
Following are tables of financial highlights, an analysis of
operating margin and pretax earnings, business results and credit
indicators, along with financial statements. Further details
concerning the financial results will be available in Citicorp's
Form 10-Q to be published in August.
KEY RATIOS & OTHER CONSOLIDATED FINANCIAL DATA
<TABLE>
<CAPTION>
Second Quarter Year-to-Date
1994 1993 1994 1993
------ ------ ------ ------
<S> <C> <C> <C> <C>
NET INCOME ($M):
Before Cumulative Effect
of Accounting Changes..... $ 877 $ 446 $1,486 $ 816
After Cumulative Effect
of Accounting Changes(A).. $ 877 $ 446 $1,430 $1,116
NET INCOME PER COMMON SHARE:
On Common & Common
Equivalent Shares
Before Cumulative Effect
of Accounting Changes..... $ 1.83 $ 0.88 $ 3.07 $ 1.59
After Cumulative Effect
of Accounting Changes(A).. $ 1.83 $ 0.88 $ 2.94 $ 2.26
Assuming Full Dilution
Before Cumulative Effect
of Accounting Changes..... $ 1.64 $ 0.82 $ 2.77 $ 1.49
After Cumulative Effect
of Accounting Changes(A).. $ 1.64 $ 0.82 $ 2.66 $ 2.06
COMMON STOCKHOLDERS' EQUITY
PER SHARE(B)............... $29.54 $23.96
CLOSING STOCK PRICE
AT QUARTER END............. $39.88 $30.13
PROFITABILITY RATIOS (Annualized):
Return on Total Assets(C):
Before Accounting Changes.. 1.36% 0.79% 1.17% 0.73%
After Accounting Changes(A) 1.36% 0.79% 1.15% 0.86%
Return on Common Stockholders'
Equity(B):
Before Accounting Changes.. 28.7% 16.9% 24.5% 15.7%
After Accounting Changes(A) 28.7% 16.9% 24.0% 19.2%
Return on Total Stockholders'
Equity(B):
Before Accounting Changes.. 23.4% 14.8% 20.3% 13.9%
After Accounting Changes(A) 23.4% 14.8% 19.9% 16.5%
CAPITAL:
Tier 1 ($B)................ $ 15.0 $ 11.8
Tier 1 & 2 ($B)(D)......... $ 24.5 $ 21.6
Tier 1 Ratio(D)............ 7.1% 5.7%
Tier 1 & 2 Ratio(D)........ 11.6% 10.3%
Common Equity as a
% of Total Assets(B)(C).. 4.5% 4.2%
Total Equity as a
% of Total Assets(B)(C).. 6.1% 5.8%
DIVIDENDS DECLARED ($M):
Common................... $ 58 $ - $ 58 $ -
Preferred................ $ 91 $ 75 $ 178 $ 148
(A) Includes the cumulative effect of adopting SFAS No. 112,
"Employers' Accounting for Postemployment Benefits", as of
January 1, 1994. The 1993 results include the cumulative
effect of adopting SFAS No. 109 "Accounting for Income
Taxes", as of January 1, 1993.
(B) The 1994 periods include the effect of adopting SFAS No. 115,
"Accounting for Certain Investments in Debt and Equity
Securities", as of January 1, 1994.
(C) The 1994 periods include the effect of adopting FASB
Interpretation No. 39, "Offsetting of Amounts Related to
Certain Contracts", as of January 1, 1994.
(D) Estimated.
</TABLE>
OPERATING MARGIN
<TABLE>
<CAPTION>
($ Millions)
Second Quarter Year-to-Date
1994 1993 1994 1993
------ ------ ------ ------
<S> <C> <C> <C> <C>
Total Revenue .......... $4,050 $3,968 $7,911 $7,853
Effect of Credit Card
Securitization......... 264 328 532 687
Net Cost to Carry(A).... 31 72 60 155
Capital Building
Transactions........... (117) 25 (140) (50)
----- ----- ----- -----
Adjusted Revenue........ $4,228 $4,393 $8,363 $8,645
----- ----- ----- -----
Total Operating
Expense................ $2,456 $2,494 $4,903 $5,020
Net OREO Costs (B)...... 19 (66) (9) (181)
----- ----- ----- -----
Adjusted Operating
Expense................ $2,475 $2,428 $4,894 $4,839
----- ----- ----- -----
Operating Margin........ $1,753 $1,965 $3,469 $3,806
Consumer Credit
Costs (C).............. 585 708 1,199 1,424
Commercial Credit
Costs (D).............. 73 297 133 677
----- ----- ----- -----
Operating Margin
Less Credit Costs...... $1,095 $ 960 $2,137 $1,705
Add'l Provision:
- -Consumer(E)............ 50 75 100 150
- -Commercial(E).......... 50 101 100 176
- -Refinancing Portfolio.. (10) - (44) -
Capital Building
Transactions........... 117 (25) 140 50
----- ----- ----- -----
Income Before Taxes and
Cumulative Effect of
Accounting Changes.... $1,122 $ 759 $2,121 $1,429
===== ===== ===== =====
(A) Principally the net cost to carry commercial cash-basis
loans and Other Real Estate Owned (OREO).
(B) Principally net write-downs (recoveries) and direct revenues
and expenses related to OREO.
(C) Principally consumer net credit write-offs adjusted for
the effect of securitization of credit card receivables.
(D) Includes commercial net credit write-offs, net cost to
carry, and net OREO write-downs (recoveries) and direct
revenues and expenses related to OREO.
(E) Represents provision for credit losses above net
write-offs.
</TABLE>
BUSINESS FOCUS
<TABLE>
Net Income (Loss)
($ Millions)
<CAPTION>
Second Quarter Year-to-Date
1994 1993(A) 1994 1993(A)
------ ------ ------ ------
<S> <C> <C> <C> <C>
Global Consumer:
North America, Europe
and Japan............. $ 250 $ 168 $ 507 $ 317
Emerging Economies...... 161 128 331 270
----- ----- ----- -----
Total Global Consumer.... $ 411 $ 296 $ 838 $ 587
----- ----- ----- -----
Global Finance:
North America, Europe
and Japan............. $ 102 $ 235 $ 194 $ 464
Emerging Economies...... 183 205 355 356
----- ----- ----- -----
Total Global Finance..... $ 285 $ 440 $ 549 $ 820
----- ----- ----- -----
North America Commercial
Real Estate............ $ (72) $ (182) $ (148) $ (388)
Cross-Border Refinancing
Portfolio.............. 53 12 101 49
Corporate Items(B)....... 200 (120) 146 (252)
----- ----- ----- -----
$ 877 $ 446 $1,486 $ 816
Cumulative Effect of
Accounting Changes(C).. - - (56) 300
----- ----- ----- -----
Citicorp................. $ 877 $ 446 $1,430 $1,116
===== ===== ===== =====
(A) Reclassified to conform to current quarter's presentation.
(B) Corporate Items includes the effects of capital building
transactions and the offset created by attributing income
taxes to business activities on a local tax basis. Second
quarter and year-to-date 1994 amounts also reflect a $150
million tax benefit related to a reduction of the deferred
tax asset valuation allowance following a reassessment of
the expected level and mix of future earnings.
(C) Includes the cumulative effect of adopting SFAS No. 112,
"Employers' Accounting for Postemployment Benefits", as of
January 1, 1994. The 1993 results include the cumulative
effect of adopting SFAS No. 109, "Accounting for Income
Taxes", as of January 1, 1993.
</TABLE>
GLOBAL CONSUMER
<TABLE>
<CAPTION>
($ Millions)
Second Quarter % Year-to-Date %
1994 1993(A) Chg 1994 1993(A)Chg
------ ------ --- ------ ------ ---
<S> <C> <C> <C> <C> <C>
Total Revenue........... $2,484 $2,349 6 $4,974 $4,578 9
----- ----- ----- -----
Total Operating Expense. $1,512 $1,487 2 $3,005 $2,914 3
----- ----- ----- -----
Provision For
Credit Losses ......... $ 361 $ 442 (18) $ 739 $ 853 (13)
----- ----- ----- -----
Income Before Taxes..... $ 611 $ 420 45 $1,230 $ 811 52
Income Taxes............ 200 124 61 392 224 75
----- ----- ----- -----
Net Income.............. $ 411 $ 296 39 $ 838 $ 587 43
===== ===== ===== =====
OTHER DATA:
Average Assets ($B)..... 103 99 4 103 99 4
Return on Assets........ 1.60% 1.20% - 1.64% 1.20% -
Adjusted for Credit-
Related Items:
Total Revenue(B)
North America,
Europe and Japan.... $2,137 $2,161 (1) $4,284 $4,239 1
Emerging Economies... 612 520 18 1,225 1,034 18
----- ----- ----- -----
Total Global Consumer.. $2,749 $2,681 3 $5,509 $5,273 4
----- ----- ----- -----
Other Operating
Expense(C)
North America,
Europe and Japan.... $1,159 $1,177 (2) $2,304 $2,307 -
Emerging Economies... 344 301 14 676 581 16
----- ----- ----- -----
Total Global Consumer.. $1,503 $1,478 2 $2,980 $2,888 3
----- ----- ----- -----
Credit Costs (D)
North America,
Europe and Japan.... $ 545 $ 668 (18) $1,121 $1,349 (17)
Emerging Economies... 40 40 - 78 75 4
----- ----- ----- -----
Total Global Consumer.. $ 585 $ 708 (17) $1,199 $1,424 (16)
----- ----- ----- -----
(A) Reclassified to conform to current quarter's presentation.
(B) Adjusted principally for the effect of credit card
securitization.
(C) Excludes net write-downs and net direct expense related
to OREO for certain real estate lending activities.
(D) Principally net credit write-offs adjusted for the effect
of credit card securitization. Includes U.S. credit card
net credit losses for both held and securitized receivables
of $352 million and $733 million for 1994 second quarter
and year-to-date, respectively, and $457 million and $938
million for the comparable periods of 1993.
</TABLE>
GLOBAL FINANCE
<TABLE>
<CAPTION>
($ Millions)
Second Quarter % Year-to-Date %
1994 1993(A) Chg 1994 1993(A)Chg
------ ------ --- ------ ------ ---
<S> <C> <C> <C> <C> <C> <C>
Total Revenue........... $1,240 $1,550 (20) $2,444 $2,996 (18)
----- ----- ----- -----
Total Operating $ 796 $ 796 - $1,581 $1,633 (3)
Expense...............
----- ----- ----- -----
Provision For
Credit Losses ......... $ 21 $ 87 (76) $ (13) $ 198 NM
----- ----- ----- -----
Income Before Taxes..... $ 423 $ 667 (37) $ 876 $1,165 (25)
Income Taxes............ 138 227 (39) 327 345 (5)
----- ----- ----- -----
Net Income.............. $ 285 $ 440 (35) $ 549 $ 820 (33)
===== ===== ===== =====
OTHER DATA:
Average Assets ($B)(B).. 139 108 29 136 106 28
Return on Assets........ 0.82% 1.63% - 0.81% 1.56% -
Adjusted for Credit-
Related Items:
Total Revenue(C)
North America,
Europe and Japan.... $ 702 $1,012 (31) $1,392 $1,956 (29)
Emerging Economies... 549 552 (1) 1,064 1,077 (1)
----- ----- ----- -----
Total Global Finance... $1,251 $1,564 (20) $2,456 $3,033 (19)
----- ----- ----- -----
Other Operating
Expense(D)
North America,
Europe and Japan.... $ 545 $ 540 1 $1,082 $1,057 2
Emerging Economies... 279 260 7 540 570 (5)
----- ----- ----- -----
Total Global Finance... $ 824 $ 800 3 $1,622 $1,627 -
----- ----- ----- -----
Credit Costs (E)
North America,
Europe and Japan.... $ (15) $ 38 NM $ (61) $ 92 NM
Emerging Economies... 7 8 (13) (5) 23 NM
----- ----- ----- -----
Total Global Finance... $ (8) $ 46 NM $ (66) $ 115 NM
----- ----- ----- -----
(A) Reclassified to conform to current quarter's presentation.
(B) The 1994 periods reflect the effect of adopting FASB
Interpretation No. 39, "Offsetting of Amounts Related to
Certain Contracts", as of January 1, 1994.
(C) After adding back the net cost to carry cash-basis loans
and OREO.
(D) Excludes net write-downs (recoveries) and net direct
revenues and expenses related to OREO.
(E) Includes net write-offs (recoveries), the net cost to carry
cash-basis loans and OREO, as well as net write-downs
(recoveries) and direct revenues and expenses related to
OREO.
NM Not meaningful as percentage exceeds 100%.
</TABLE>
NORTH AMERICA COMMERCIAL REAL ESTATE
<TABLE>
<CAPTION>
($ Millions)
Second Quarter % Year-to-Date %
1994 1993(A) Chg 1994 1993(A)Chg
------ ------ --- ----- ------ ---
<S> <C> <C> <C> <C> <C> <C> <S>
Total Revenue.......... $ 24 $ (18) NM $ 43 $ (42) NM
---- ----- ----- -----
Total Operating Expense $ 33 $ 100 (67) $ 93 $ 226 (59)
---- ----- ----- -----
Provision For
Credit Losses......... $ 101 $ 186 (46) $ 207 $ 354 (42)
---- ----- ----- -----
(Loss) Before Taxes.... $(110) $ (304) 64 $ (257) $ (622) 59
Income Taxes........... (38) (122) 69 (109) (234) 53
---- ----- ----- -----
Net (Loss)............. $ (72) $ (182) 60 $ (148) $ (388) 62
==== ===== ===== =====
OTHER DATA:
Average Assets ($B).... 9 12 (25) 9 13 (31)
Adjusted for Credit-
Related Items:
Total Revenue (B).... 43 36 19 88 68 29
Total Operating
Expense (C)......... 33 39 (15) 68 77 (12)
Credit Costs (D)..... 82 251 (67) 201 563 (64)
(A) Reclassified to conform to current quarter's presentation.
(B) After adding back the net cost to carry cash-basis loans
and OREO.
(C) Excludes net write-downs and direct revenues and expenses
related to OREO.
(D) Includes net write-offs, the net cost to carry cash-basis
loans and OREO, as well as net write-downs and direct
revenues and expenses related to OREO.
NM Not meaningful as percentage exceeds 100%.
</TABLE>
CROSS-BORDER REFINANCING PORTFOLIO
<TABLE>
<CAPTION>
($ Millions)
Second Quarter % Year-to-Date %
1994 1993(A) Chg 1994 1993(A)Chg
------ ------ --- ------ ------ ---
<S> <C> <C> <C> <C> <C> <C>
Total Revenue .......... $ 56 $ 13 NM $ 84 $ 59 42
----- ----- ----- -----
Total Operating Expense. $ 6 $ 7 (14) $ 12 $ 13 (8)
----- ----- ----- -----
Provision For
Credit Losses.......... $ (11) $ - - $ (46) $ (1) NM
----- ----- ----- -----
Income Before Taxes $ 61 $ 6 NM $ 118 $ 47 NM
Income Taxes............ 8 (6) NM 17 (2) NM
----- ----- ----- -----
Net Income.............. $ 53 $ 12 NM $ 101 $ 49 NM
===== ===== ===== =====
OTHER DATA:
Average Assets ($B)..... 3 3 - 3 3 -
</TABLE>
CORPORATE ITEMS
<TABLE>
<CAPTION>
($ Millions)
Second Quarter % Year-to-Date %
1994 1993(A) Chg 1994 1993(A)Chg
------ ------ --- ------ ------ ---
<S> <C> <C> <C> <C> <C> <C>
Total Revenue........... $ 246 $ 74 NM $ 366 $ 262 40
----- ----- ----- -----
Total Operating Expense. $ 109 $ 104 5 $ 212 $ 234 (9)
----- ----- ----- -----
Income (Loss) Before
Taxes.................. $ 137 $ (30) NM $ 154 $ 28 NM
Income Taxes............ (63) 90 NM 8 280 (97)
----- ----- ----- -----
Net Income (Loss) (B)... $ 200 $ (120) NM $ 146 $ (252) NM
===== ===== ===== =====
(A) Reclassified to conform to current quarter's presentation.
(B) Corporate Items includes net after-tax gains (losses) from
capital building transactions of $74 million and $88 million
for the 1994 second quarter and year-to-date, respectively,
and $(14) million and $27 million for the comparable periods
of 1993. Additionally, Corporate Items includes the offset
created by attributing income taxes to business activities
on a local tax basis. Second quarter and year-to-date 1994
amounts also reflect a $150 million tax benefit related to
a reduction of the deferred tax asset valuation allowance
following a reassessment of the expected level and mix of
future earnings.
NM Not meaningful as percentage exceeds 100%.
</TABLE>
ASSET QUALITY
COMMERCIAL CASH-BASIS LOANS AND OREO
<TABLE>
<CAPTION>
($ Millions)
2Q 1Q 4Q 3Q 2Q 1Q
1994 1994 1993 1993 1993 1993
----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
North America
Commercial Real
Estate.............. $1,495 $1,654 $1,719 $2,138 $2,474 $2,593
Global Finance....... 581 699 755 1,063 1,346 1,267
----- ----- ----- ----- ----- -----
Commercial Cash-
Basis Loans (excl.
Refinancing)........ $2,076 $2,353 $2,474 $3,201 $3,820 $3,860
Cross-Border
Refinancing(A)...... 165 991 1,041 1,068 1,082 1,242
----- ----- ----- ----- ----- -----
Total Commercial
Cash-Basis Loans.... $2,241 $3,344 $3,515 $4,269 $4,902 $5,102
Commercial OREO...... 2,415 2,598 2,796 3,122 3,479 3,721
----- ----- ----- ----- ----- -----
Total Commercial
Cash-Basis Loans &
OREO................ $4,656 $5,942 $6,311 $7,391 $8,381 $8,823
===== ===== ===== ===== ===== =====
ALLOWANCE FOR CREDIT LOSSES
2Q 1Q 4Q 3Q 2Q 1Q
1994 1994 1993 1993 1993 1993
----- ----- ----- ----- ----- -----
Global Consumer...... $1,711 $1,639 $1,596 $1,550 $1,491 $1,412
Commercial(B)........ 3,201 2,595 2,545 2,482 2,394 2,296
Cross-Border
Refinancing......... - 238 238 228 205 325
----- ----- ----- ----- ----- -----
Total................ $4,912 $4,472 $4,379 $4,260 $4,090 $4,033
===== ===== ===== ===== ===== =====
Reserve for
Global Consumer
Sold Portfolios.... $ 503 $ 538 $ 527 $ 559 $ 557 $ 557
ALLOWANCE AS A PERCENTAGE
OF TOTAL LOANS
2Q 1Q 4Q 3Q 2Q 1Q
1994 1994 1993 1993 1993 1993
----- ----- ----- ----- ----- -----
Global Consumer...... 2.00% 1.98% 1.89% 1.89% 1.83% 1.75%
Commercial(B)........ 5.76% 4.88% 4.88% 4.49% 4.35% 4.25%
Total................ 3.48% 3.26% 3.15% 3.05% 2.94% 2.92%
ADDITIONAL DATA
2Q 1Q 4Q 3Q 2Q 1Q
1994 1994 1993 1993 1993 1993
----- ----- ----- ----- ----- -----
Commercial Allowance
as % of Commercial
Cash-Basis Loans(A)(B) 142.8% 110.3% 102.9% 77.5% 62.7% 59.5%
Commercial Re-
negotiated Loans(C). $ 417 $ 384 $ 708 $ 377 $ 147 $ 136
Consumer OREO........ $1,194 $1,247 $1,212 $1,283 $1,312 $1,314
Consumer
Cash-Basis Loans(D). $2,813 $2,904 $2,863 $3,004 $3,102 $3,113
(A) Reflects the transfer of $0.8 billion of Brazil outstandings
to Available for Sale Securities in the second quarter of
1994, pursuant to the restructuring agreement completed in
the quarter.
(B) Effective second quarter 1994, includes amounts related to
the Cross-Border Refinancing portfolio.
(C) Not included in these amounts are holdings of Brady Bonds
issued by the governments of Nigeria and the Philippines.
(D) Estimated.
</TABLE>
DETAILS OF CREDIT LOSS EXPERIENCE
<TABLE>
<CAPTION>
($ Millions)
2Q 1Q 4Q 3Q 2Q 1Q
1994 1994 1993 1993 1993 1993
----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C>
NET WRITE-OFFS
(RECOVERIES):
Global Consumer.... $ 311 $ 328 $ 351 $ 356 $ 367 $ 336
North America
Commercial Real
Estate........... 63 68 78 49 136 168
Global Finance..... 9 (46) 16 69 36 36
---- ---- ---- ---- ---- ----
Total Commercial
(excl. Refinancing) $ 72 $ 22 $ 94 $ 118 $ 172 $ 204
---- ---- ---- ---- ---- ----
Cross-Border
Refinancing (A)... (329) (35) (10) (23) 120 (26)
---- ---- ---- ---- ---- ----
Total.............. $ 54 $ 315 $ 435 $ 451 $ 659 $ 514
==== ==== ==== ==== ==== ====
2Q 1Q 4Q 3Q 2Q 1Q
1994 1994 1993 1993 1993 1993
----- ----- ----- ----- ----- -----
PROVISION FOR
CREDIT LOSSES:
Global Consumer..... $ 361 $ 378 $ 414 $ 419 $ 442 $ 411
North America
Commercial Real
Estate............ 101 106 141 115 186 168
Global Finance...... 21 (34) 16 91 87 111
---- ---- ---- ---- ---- ----
Total Commercial
(excl. Refinancing) $ 122 $ 72 $ 157 $ 206 $ 273 $ 279
---- ---- ---- ---- ---- ----
Cross-Border
Refinancing........ (11) (35) - - - (1)
---- ---- ---- ---- ---- ----
Total............... $ 472 $ 415 $ 571 $ 625 $ 715 $ 689
==== ==== ==== ==== ==== ====
NET OREO WRITE-DOWNS
(RECOVERIES):
North America
Commercial Real
Estate............ $ 12 $ 36 $ 27 $ 73 $ 65 $ 92
Global Finance...... (25) (6) (30) 13 (1) 4
---- ---- ---- ---- ---- ----
Total............... $ (13) $ 30 $ (3) $ 86 $ 64 $ 96
==== ==== ==== ==== ==== ====
(A) Includes a credit recovery of $318 million in the second
quarter of 1994 as part of the step-up to market value of
instruments received pursuant to the Brazil restructuring
agreement completed in the quarter.
</TABLE>
STATEMENT OF OPERATIONS CITICORP and Subsidiaries
<TABLE>
<CAPTION>
(In Millions of Dollars,
Except Per Share Amounts)
Second Quarter % Year-to-Date %
1994 1993 Chg 1994 1993 Chg
------ ------- --- ------- ------- ---
<S> <C> <C> <C> <C> <C> <C>
Interest Revenue....... $6,896 $5,680 21 $13,354 $11,549 16
Interest Expense....... 4,738 3,827 24 9,111 7,849 16
----- ----- ------ ------
Net Interest Revenue... $2,158 $1,853 16 $ 4,243 $ 3,700 15
----- ----- ------ ------
Fees & Commissions.... $1,239 $1,253 (1) $ 2,498 $ 2,466 1
Trading Account....... 19 220 (91) 24 437 (95)
Foreign Exchange...... 140 352 (60) 206 592 (65)
Securities Trans...... 123 32 NM 173 48 NM
Other Revenue......... 371 258 44 767 610 26
----- ----- ------ ------
Total Fees, Commissions
and Other Revenue..... $1,892 $2,115 (11) $ 3,668 $ 4,153 (12)
----- ----- ------ ------
TOTAL REVENUE.......... $4,050 $3,968 2 $ 7,911 $ 7,853 1
----- ----- ------ ------
PROVISION FOR
CREDIT LOSSES......... $ 472 $ 715 (34) $ 887 $ 1,404 (37)
----- ----- ------ ------
Operating Expense:
Salaries............. $ 974 $ 947 3 $ 1,928 $ 1,860 4
Employee Benefits.... 285 238 20 568 503 13
Net Premises &
Equipment Expense.... 370 391 (5) 760 787 (3)
Other Expense........ 827 918 (10) 1,647 1,870 (12)
----- ----- ------ ------
TOTAL OPERATING EXPENSE $2,456 $2,494 (2) $ 4,903 $ 5,020 (2)
----- ----- ------ ------
INCOME BEFORE TAXES
AND CUMULATIVE EFFECT
OF ACCOUNTING CHANGES. $1,122 $ 759 48 $ 2,121 $ 1,429 48
Income Taxes.......... 245 313 (22) 635 613 4
----- ----- ------ ------
INCOME BEF. CUMULATIVE
EFFECT OF ACCTG CHGS.. $ 877 $ 446 97 $ 1,486 $ 816 82
Cumulative Effect of
Accounting Changes(A). - - - (56) 300 NM
----- ----- ------ ------
NET INCOME............. $ 877 $ 446 97 $ 1,430 $ 1,116 28
===== ===== ====== ======
INCOME APPLICABLE
TO COMMON STOCK....... $ 790 $ 370 NM $ 1,256 $ 966 30
===== ===== ====== ======
EARNINGS PER SHARE :
On Common & Common Equiv. Shs
Income Bef. Cumulative
Effect of Acctg Chgs. $ 1.83 $ 0.88 $ 3.07 $ 1.59
Cumulative Effect of
Accounting Changes(A) $ - $ - $ (0.13)$ 0.67
Net Income............ $ 1.83 $ 0.88 $ 2.94 $ 2.26
Assuming Full Dilution
Income Bef. Cumulative
Effect of Acctg Chgs. $ 1.64 $ 0.82 $ 2.77 $ 1.49
Cumulative Effect of
Accounting Changes(A) $ - $ - $ (0.11)$ 0.57
Net Income............ $ 1.64 $ 0.82 $ 2.66 $ 2.06
(A) Includes the cumulative effect of adopting SFAS No. 112,
"Employers' Accounting for Postemployment Benefits", as of
January 1, 1994. The 1993 results include the cumulative
effect of adopting SFAS No. 109, "Accounting for Income
Taxes", as of January 1, 1993.
NM Not meaningful as percentage exceeds 100%.
</TABLE>
CONSOLIDATED BALANCE SHEET CITICORP and Subsidiaries
<TABLE>
<CAPTION>
(In Millions of Dollars)
June 30 Dec. 31 %
1994 1993(A) Chg
-------- -------- ---
<S> <C> <C> <C>
ASSETS
Cash and Due from Banks......... $ 5,542 $ 4,836 15
Deposits at Interest with Banks. 7,720 6,749 14
Securities(B):
Held to Maturity............... 5,099 5,637 (10)
Available for Sale............. 13,018 8,705 50
Venture Capital................ 1,618 1,489 9
Trading Account Assets(C)....... 51,959 23,783 NM
Federal Funds Sold &
Securities Purchased
Under Resale Agreements........ 9,050 7,339 23
Loans, Net
Consumer....................... $ 85,531 $ 84,354 1
Commercial(B).................. 55,561 54,613 2
------- -------
Total Loans................. $141,092 $138,967 2
Allowance for Credit Losses..... (4,912) (4,379) (12)
------- -------
Total Loans, Net............ $136,180 $134,588 1
Customers' Acceptance Liability $ 1,311 $ 1,512 (13)
Premises & Equipment, Net....... 3,945 3,842 3
Interest & Fees Receivable...... 2,716 2,552 6
Other Assets.................... 16,088 15,542 4
------- -------
Total........................... $254,246 $216,574 17
======= =======
LIABILITIES
Non-Int. Deposits (in the U.S.). $ 13,322 $ 13,442 (1)
Int. Deposits (in the U.S.)..... 36,982 38,347 (4)
Non-Int. Deposits (Outside the
U.S.).......................... 7,660 6,644 15
Int. Deposits(Outside the U.S.). 94,328 86,656 9
------- -------
Total Deposits.............. $152,292 $145,089 5
Trading Account Liabilities(C).. 32,817 5,478 NM
Purchased Funds &
Other Borrowings............... 20,748 16,777 24
Acceptances Outstanding......... 1,329 1,531 (13)
Accrued Taxes & Other Expenses.. 6,262 6,452 (3)
Other Liabilities............... 8,368 9,134 (8)
Long-Term Debt.................. 15,058 16,010 (6)
Subordinated Capital Notes...... 1,750 2,150 (19)
STOCKHOLDERS' EQUITY
Preferred Stock
(Without Par Value)............ $ 4,062 $ 3,887 5
Common Stock (Par value $1.00).. 417 412 1
Surplus......................... 4,030 3,898 3
Retained Earnings .............. 7,922 6,729 18
Net Unrealized Gains-Securities
Available for Sale(B).......... 90 - NA
Foreign Currency Translation.... (505) (580) 13
Common Stock in Treasury,
at Cost........................ (394) (393) -
------- -------
Total Stockholders' Equity.. $ 15,622 $ 13,953 12
------- -------
Total........................... $254,246 $216,574 17
======= =======
(A) Reclassified to conform to current quarter's presentation.
(B) Balances at June 30, 1994 include the effect of adopting
Statement of Financial Accounting Standards No. 115,
"Accounting for Certain Investments in Debt and Equity
Securities". Statement No. 115, which requires that
securities designated as "available for sale" be carried
at fair value with unrealized gains and losses reported in
stockholders' equity (net of applicable taxes), was adopted
effective January 1, 1994. Pursuant to the adoption of
SFAS No. 115, "Brady Bonds" previously included as Commercial
Loans are classified as Held to Maturity and Available for
Sale Securities.
(C) Trading Account Assets and Trading Account Liabilities
as of June 30, 1994 include approximately $24.1 billion
relating to the adoption of Financial Accounting Standards
Board Interpretation No. 39, "Offsetting of Amounts
Related to Certain Contracts". Interpretation No. 39
requires that unrealized trading gains and losses be
reported gross on the balance sheet except where there is
a qualifying netting agreement in place. On a pro-forma
basis, Trading Account Assets and Trading Account Liabilities
as of December 31, 1993 would have been $36.8 billion and
$18.5 billion, respectively, had the new rule been in effect
on that date. Amounts presented for Trading Account Assets
and Trading Account Liabilities as of December 31, 1993
include the reclassification of $5.7 billion and $3.1
billion, respectively, to provide for consistent presentation
of amounts previously recorded in Other Assets and Other
Liabilities representing revaluation gains and losses and
other balances related to these contracts.
NM Not meaningful as percentage exceeds 100%.
</TABLE>
ADDITIONAL FINANCIAL DATA
<TABLE>
<CAPTION>
($ Millions)
2Q 1Q 4Q 3Q 2Q 1Q
1994 1994 1993 1993 1993 1993
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
NET INTEREST
REVENUE(A)
Net Interest
Revenue........ $ 2,170 $ 2,087 $ 2,012 $ 1,986 $ 1,856 $ 1,851
Net Interest
Margin......... 4.15% 4.01% 3.94% 3.97% 3.78% 3.82%
ADJUSTED TO EXCLUDE
THE EFFECT OF CREDIT
CARD SECURITIZATION:
Net Interest
Revenue........ $ 2,710 $ 2,616 $ 2,553 $ 2,567 $ 2,432 $ 2,472
Net Interest
Margin......... 4.64% 4.52% 4.48% 4.57% 4.41% 4.52%
CONSOLIDATED AVERAGE
BALANCES
2Q 1Q 4Q 3Q 2Q 1Q
1994 1994 1993 1993 1993 1993
------ ------ ------ ------ ------ ------
Loans ($B):
Consumer....... $ 84 $ 84 $ 82 $ 81 $ 81 $ 82
Commercial..... 55 54 57 57 58 58
------ ------ ------ ------ ------ ------
Total Average
Loans.......... $ 139 $ 138 $ 139 $ 138 $ 139 $ 140
====== ====== ====== ====== ====== ======
Total Average
Assets ($B)(B). $ 258 $ 253 $ 233 $ 229 $ 227 $ 225
Avg Interest
Earning
Assets($B)..... $ 210 $ 211 $ 203 $ 199 $ 197 $ 196
Common
Stockholders'
Equity ($M)(C). $11,049 $10,562 $ 9,728 $ 9,215 $ 8,775 $ 8,364
Preferred
Equity ($M).... 3,975 3,887 3,887 3,595 3,266 3,212
------ ------ ------ ------ ------ ------
Total Average
Stockholders'
Equity ($M)(C). $15,024 $14,449 $13,615 $12,810 $12,041 $11,576
====== ====== ====== ====== ====== ======
(A) Taxable Equivalent Basis.
(B) The 1994 periods include the effect of adopting FASB
Interpretation No. 39, "Offsetting of Amounts Related
to Certain Contracts", which is reflected in non-interest
earning assets.
(C) The 1994 periods include the effect of adopting SFAS
No. 115, "Accounting for Certain Investments in Debt
and Equity Securities", as of January 1, 1994.
</TABLE>
EARNINGS PER SHARE DATA(A)
(Before Cumulative Effect
of Accounting Change)
<TABLE>
<CAPTION>
($ Millions) Second Quarter Year-to-Date
1994 1993 1994 1993
------- ------- ------- -------
<S> <C> <C> <C> <C>
On Common and Common
Equivalent Shares:
Earnings.............. $ 813 $ 393 $ 1,359 $ 713
Shares (in thousands). 443,285 447,641 442,272 448,101
Earnings Per Share.... $ 1.83 $ 0.88 $ 3.07 $ 1.59
Assuming Full Dilution:
Earnings.............. $ 847 $ 427 $ 1,427 $ 781
Shares (in thousands). 516,760 522,291 515,530 523,496
Earnings Per Share.... $ 1.64 $ 0.82 $ 2.77 $ 1.49
COMMON SHARES OUTSTANDING
(In Thousands)
End-Of-Period......... 391,281 375,780
(A) For earnings per share on common and common equivalent
shares, dividends on Conversion Preferred Stock, Series 15
($23 million in the second quarter of 1994 and 1993 and
$47 million in both year-to-date periods) are added back to
income applicable to common stock, and the number of shares
issuable on conversion (43 million shares in the second
quarter and year-to-date of 1994, 63 million in the second
quarter of 1993 and 66 million for the year-to-date 1993)
are added back to weighted average shares outstanding.
Also added to shares outstanding are other common equivalent
shares and, as to the undistributed portion of earnings, book
value shares issuable under certain benefit plans.
For earnings per share assuming full dilution, dividends on
Convertible Preferred Stock, Series 12 and 13 ($34 million
in the second quarter of 1994 and 1993 and $68 million in
both year-to-date periods) are also added back to income
applicable to common stock, and the shares issuable on
conversion (73 million shares) are added to shares out-
standing. The number of common equivalent and book value
shares are calculated on a fully diluted basis as well.
</TABLE>
OTHER REVENUE DATA
<TABLE>
<CAPTION>
Second Quarter Year-to-Date
1994 1993(A) 1994 1993(A)
------ ------ ------ ------
<S> <C> <C> <C> <C>
OTHER REVENUE
($ Millions)
Affiliate Earnings...... $ 52 $ 38 $ 117 $ 79
Securitized Credit
Card Receivables....... 236 257 444 501
Net (Losses) from
Mortgage Pass-Through
Securitization (9) (17) (47) (83)
Activity...............
Venture Capital Gains... 25 21 104 75
Net Asset Gains(Losses). 51 (25) 81 54
Foreign Currency
Translation Gains/ 7 (4) 7 (32)
(Losses)...............
Other Items............. 9 (12) 61 16
------ ------ ------- ------
Total................. $ 371 $ 258 $ 767 $ 610
====== ====== ======= ======
(A) Reclassified to conform to current quarter's presentation.
</TABLE>
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits
- Exhibit No. 12(a) Calculation of Ratio
of Income to Fixed Charges
- Exhibit No. 12(b) Calculation of Ratio
of Income to Fixed Charges Including
Preferred Stock Dividends
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
CITICORP
(Registrant)
By: /s/ Thomas E. Jones
-------------------------------
Thomas E. Jones
Executive Vice President
A Principal Financial Officer
Dated: July 20, 1994
<TABLE>
<CAPTION>
CITICORP AND SUBSIDIARIES
CALCULATION OF RATIO OF INCOME TO FIXED CHARGES
(In Millions)
EXCLUDING INTEREST ON DEPOSITS SIX MONTHS
ENDED
JUNE 30
1993 1992 1991 1990 1989 1994 1993
------ ------- ------- ------- ------- ------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
FIXED CHARGES:
INTEREST EXPENSE (OTHER THAN
INTEREST ON DEPOSITS) (A) 6,324 5,826 5,973 9,414 11,482 4,052 2,979
INTEREST FACTOR IN RENT EXPENSE 147 162 171 173 161 72 74
------- ------- ------- ------- ------- ------- ------
TOTAL FIXED CHARGES 6,471 5,988 6,144 9,587 11,643 4,124 3,053
INCOME:
ADJUSTED NET INCOME(LOSS) 1,919(B) 722 (914)(C) 318(D) 498 1,486(E) 816(B)
INCOME TAXES 941 696 677 508 1,035 635 613
FIXED CHARGES (A) 6,471 5,988 6,144 9,587 11,643 4,124 3,053
------- ------- ------- ------- ------- ------- -------
TOTAL INCOME 9,331 7,406 5,907 10,413 13,176 6,245 4,482
======= ======= ======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS 1.44 1.24 0.96(F) 1.09 1.13 1.51 1.47
======= ======= ======= ======= ======= ======= =======
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE 16,121 16,327 17,089 23,798 24,218 9,111 7,849
INTEREST FACTOR IN RENT EXPENSE 147 162 171 173 161 72 74
------- ------- ------- ------- ------- ------- -------
TOTAL FIXED CHARGES 16,268 16,489 17,260 23,971 24,379 9,183 7,923
INCOME:
NET INCOME(LOSS) 1,919(B) 722 (914)(C) 318(D) 498 1,486(E) 816(B)
INCOME TAXES 941 696 677 508 1,035 635 613
FIXED CHARGES 16,268 16,489 17,260 23,971 24,379 9,183 7,923
------- ------- ------- ------- ------- ------- -------
TOTAL INCOME 19,128 17,907 17,023 24,797 25,912 11,304 9,352
======= ======= ======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS 1.18 1.09 0.99(F) 1.03 1.06 1.23 1.18
======= ======= ======= ======= ======= ======= ======
(A) PRIOR YEARS HAVE BEEN RECLASSIFIED TO CONFORM TO CURRENT YEAR'S PRESENTATION.
(B) NET INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1993 AND FULL YEAR 1993 EXCLUDE THE CUMULATIVE EFFECT OF
ADOPTING STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO.109, "ACCOUNTING FOR INCOME TAXES", OF $300 MILLION.
(C) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1991 EXCLUDES THE CUMULATIVE EFFECT OF ACCOUNTING CHANGE FOR
VENTURE CAPITAL INVESTMENTS OF $457 MILLION.
(D) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1990 EXCLUDES THE CUMULATIVE EFFECT OF ACCOUNTING CHANGE FOR
CERTAIN DERIVATIVE PRODUCTS OF $140 MILLION.
(E) NET INCOME FOR THE SIX MONTHS ENDED JUNE 30,1994 EXCLUDES THE CUMULATIVE EFFECT OF ADOPTING STATEMENT OF
FINANCIAL ACCOUNTING STANDARDS NO. 112, "EMPLOYERS' ACCOUNTING FOR POSTEMPLOYMENT BENEFITS", OF $(56)
MILLION.
(F) EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1991 WERE INADEQUATE TO COVER FIXED CHARGES BY THE AMOUNT OF
$237 MILLION.
</TABLE>
<TABLE>
<CAPTION>
CITICORP AND SUBSIDIARIES
CALCULATION OF RATIO OF INCOME TO FIXED CHARGES
INCLUDING PREFERRED STOCK DIVIDENDS
(In Millions)
SIX MONTHS
EXCLUDING INTEREST ON DEPOSITS ENDED
JUNE 30
1993 1992 1991 1990 1989 1994 1993
------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
FIXED CHARGES:
INTEREST EXPENSE (OTHER THAN
INTEREST ON DEPOSITS)(A) 6,324 5,826 5,973 9,414 11,482 4,052 2,979
INTEREST FACTOR IN RENT EXPENSE 147 162 171 173 161 72 74
DIVIDENDS - PREFERRED STOCK 465 416 271(B) 361 385 283 259
------- ------- ------- ------- ------- ------- -------
TOTAL FIXED CHARGES 6,936 6,404 6,415 9,948 12,028 4,407 3,312
INCOME:
NET INCOME(LOSS) 1,919(C) 722 (914)(D) 318(E) 498 1,486(F) 816(C)
INCOME TAXES 941 696 677 508 1,035 635 613
FIXED CHARGES (EXCLUDING
PREFERRED STOCK DIVIDENDS)(A) 6,471 5,988 6,144 9,587 11,643 4,124 3,053
------- ------- ------- ------- ------- ------- -------
TOTAL INCOME 9,331 7,406 5,907 10,413 13,176 6,245 4,482
======= ======= ======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS 1.35 1.16 0.92(G) 1.05 1.10 1.42 1.35
======= ======= ======= ======= ======= ======= =======
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE 16,121 16,327 17,089 23,798 24,218 9,111 7,849
INTEREST FACTOR IN RENT EXPENSE 147 162 171 173 161 72 74
DIVIDENDS - PREFERRED STOCK 465 416 271(B) 361 385 283 259
------- ------- ------- ------- ------- ------ ------
TOTAL FIXED CHARGES 16,733 16,905 17,531 24,332 24,764 9,466 8,182
INCOME:
NET INCOME(LOSS) 1,919(C) 722 (914)(D) 318(E) 498 1,486(F) 816(C)
INCOME TAXES 941 696 677 508 1,035 635 613
FIXED CHARGES (EXCLUDING
PREFERRED STOCK DIVIDENDS) 16,268 16,489 17,260 23,971 24,379 9,183 7,923
------- ------- ------- ------- ------- ------- ------
TOTAL INCOME 19,128 17,907 17,023 24,797 25,912 11,304 9,352
======= ======= ======= ======= ======= ======= ======
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS 1.14 1.06 0.97(G) 1.02 1.05 1.19 1.14
======= ======= ======= ======= ====== ======= ======
(A) PRIOR YEARS HAVE BEEN RECLASSIFIED TO CONFORM TO CURRENT YEAR'S PRESENTATION.
(B) CALCULATED ON A BASIS OF AN ASSUMED TAX RATE OF OF 34%.
(C) NET INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1993 AND FULL YEAR 1993 EXCLUDE THE CUMULATIVE EFFECT OF
ADOPTING STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 109, "ACCOUNTING FOR INCOME TAXES", OF $300
MILLION.
(D) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1991 EXCLUDES THE CUMULATIVE EFFECT OF ACCOUNTING CHANGE FOR
VENTURE CAPITAL INVESTMENTS OF $457 MILLION.
(E) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1990 EXCLUDES THE CUMULATIVE EFFECT OF ACCOUNTING CHANGE FOR
CERTAIN DERIVATIVE PRODUCTS OF $140 MILLION.
(F) NET INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1994 EXCLUDES THE CUMULATIVE EFFECT OF ADOPTING STATEMENT
OF FINANCIAL ACCOUNTING STANDARDS NO. 112, "EMPLOYERS' ACCOUNTING FOR POSTEMPLOYMENT BENEFITS", OF $(56)
MILLION.
(G) EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1991 WERE INADEQUATE TO COVER FIXED CHARGES BY THE AMOUNT OF
$508 MILLION.
</TABLE>
