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): January
18, 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)
Item 5. Other Events
- ---------------------
On January 18, 1994 Citicorp reported record net income of
$2.2 billion for the year 1993, or $4.11 per common share fully
diluted. For the fourth quarter, net income was $575 million, or
$1.06 per share.
These results, estimated January 13, compare with net income
of $722 million, or $1.35 per share, in 1992 and net income of $280
million, or $0.53 per share, in the 1992 fourth quarter.
Citicorp's previous record for annual net income was $1.9
billion in 1988.
John S. Reed, chairman, said: "The year's record earnings
reflect strong business results and substantial improvement in
credit costs -- two themes that should underlie our accomplishments
going forward into 1994-95. Global Finance had its best year ever
in 1993 in Europe and good gains in North America. The Global
Consumer business continued outstanding earnings growth."
"The 1993 results also show how much we have strengthened the
balance sheet -- in capital, ratios and reserves," he added.
The Tier 1 capital ratio was estimated at 6.5%, up from 6.2%
at September 30, 1993. Total regulatory capital at December 31,
1993, rose to $23.2 billion, estimated to be 11.2% of risk-adjusted
assets. A year earlier the Tier 1 ratio was 4.9% and the total
capital ratio was 9.6%.
Return on common equity increased to 19.9% for the quarter and
17.7% for the year, compared with 10.7% and 6.5% for the same 1992
periods. Return on total stockholders' equity was 16.7% in the
fourth quarter and 15.3% in 1993. (The 1993 annual return excludes
the effect of the previously announced accounting change for income
taxes.)
Total adjusted revenues increased to $4.5 billion in the
quarter, up 7% from the same 1992 quarter and 3% from the 1993
third quarter. The gains came chiefly from businesses in the
developing economies.
Trading revenues from foreign exchange, securities and
derivatives totaled $427 million in the quarter, compared with $299
million in the same 1992 quarter and with $478 million in the 1993
third quarter. Foreign exchange revenues of $158 million and
securities trading revenues of $269 million compared with $245
million and $233 million, respectively, in the 1993 third quarter
and $264 million and $35 million, respectively, in the 1992 fourth
quarter.
Adjusted operating expenses increased 7% from the 1992 fourth
quarter and 4% from the 1993 third quarter. The increase from the
third quarter was due largely to marketing costs in the U.S.
Page 2
consumer businesses and business expansion in developing economies.
Also affecting the year-to-year increase were compensation accruals
partly related to strong trading revenues.
Both commercial and consumer credit costs declined.
Commercial credit costs decreased for the eighth straight quarter,
to $126 million, from $233 million in the 1993 third quarter and
from $478 million in the 1992 fourth quarter. Commercial cash-
basis loans and Other Real Estate Owned together dropped by $1.1
billion in the quarter to $5.3 billion. Consumer credit costs
declined to $651 million in the quarter from $665 million in the
1993 third quarter and from $836 million in the 1992 fourth
quarter.
Loan loss reserves increased in the quarter to $4.4 billion at
1993 year-end. The consumer reserve was built by $63 million in
the quarter to $1.6 billion, compared with $1.3 billion a year
earlier, and the commercial reserve by $63 million in the quarter
to $2.5 billion, compared with $2.2 billion a year earlier.
In its announcement on January 13, Citicorp said that in the
1993 fourth quarter it took restructuring charges of $425 million
($0.50 per share after tax) for cost-management programs to improve
productivity, principally in U.S. markets, and business writedowns
of $179 million ($0.21 per share after tax), as well as gains of
$107 million ($0.14 per share after tax) from the sale of Brazilian
bonds. Also in the fourth quarter, the company recognized $200
million ($0.39 per share) of deferred tax benefits.
On the restructuring charges, Mr. Reed said: "We arrived at
these charges through plans submitted by line business units during
our annual planning process, not through a corporate-level effort.
We approved those proposals that will have a positive effect in the
current year and achieve full payback by the end of 1995."
The business writedowns are principally in the Quotron
subsidiary and cover costs associated with the disposition of the
market data services business. It has been announced that Citicorp
reached an agreement in principle to sell that business to Reuters
America Holdings Inc., subject to completion of a definitive
agreement and government approvals.
The 1993 full year results included the previously reported
recognition, as of January 1, 1993, of $300 million ($0.58 per
share) as the cumulative effect of adopting Statement of Financial
Accounting Standards No. 109, "Accounting for Income Taxes."
Page 3
RESULTS OF BUSINESS OPERATIONS
Global Consumer
Net income for the Global Consumer businesses was $1.4 billion
in 1993, compared with $969 million in 1992, excluding after-tax
restructuring charges of $143 million in 1993 and $82 million in
1992. Fourth quarter net income, excluding restructuring charges,
was $378 million, compared with $263 million in the same 1992
quarter. Results for the year and the quarter reflected
significantly lower credit losses in North America, along with
continued strong revenue growth in the developing economies and in
private banking.
Global Consumer adjusted revenues of $2.8 billion in the
quarter were up approximately 1% from the same year-earlier quarter
and 1.6% from the 1993 third quarter. Operating expenses were
$1.55 billion in the quarter, compared with $1.5 billion in the
same 1992 quarter and in the 1993 third quarter.
Net income in the consumer businesses in North America, Europe
and Japan, excluding restructuring charges, was $804 million for
1993 and $228 million in the fourth quarter, compared with $513
million and $154 million in the respective 1992 periods. Revenues
were $8.7 billion for 1993 and $2.2 billion in the fourth quarter,
compared with $8.9 billion and $2.3 billion in the respective 1992
periods. Throughout the year, substantially lower net credit
losses in the U.S. card business more than offset soft revenues.
Operating expenses in the North America, Europe and Japan
businesses for the fourth quarter were 2% higher than the same 1992
quarter but were unchanged for 1993 compared with 1992. A
significant portion of the fourth-quarter restructuring charge is
targeted to further increase efficiencies in the U.S. consumer
businesses.
Net income in the developing economies businesses, excluding
restructuring charges, was $560 million in the year and $150
million in the fourth quarter, compared with $456 million and $109
million in the respective 1992 periods. Revenue growth of 20% in
the year and 21% in the fourth quarter (compared with the same 1992
periods) reflected continued business expansion and was balanced
between the Asian and Latin American regions. Operating expenses,
excluding restructuring charges, rose 13% in both the year and the
fourth quarter, compared with the same 1992 periods, in support of
the business expansion.
Consumer loans on the balance sheet that are delinquent 90
days or more improved to approximately $3.6 billion from $3.7
billion at the end of the 1993 third quarter and $3.9 billion at
1992 year-end.
Page 4
Global Finance
Net income for the year in the Global Finance businesses was
$1.8 billion, compared with $1.2 billion in 1992, excluding after-
tax restructuring charges of $95 million in 1993 and $49 million in
1992. Fourth quarter net income was $522 million, compared with
$305 million in the same 1992 quarter, excluding after-tax
restructuring charges of $95 million and $22 million in 1993 and
1992, respectively.
Global Finance adjusted revenues in the quarter were $1.6
billion, a 17% increase from the same 1992 quarter and 6% from the
1993 third quarter. The revenue increase from the 1992 fourth
quarter was due primarily to strong results from trading-related
activities, principally in Europe and North America and from
business expansion in developing economies. The increase from the
1993 third quarter resulted from activities in developing
economies.
Revenues from derivative products, most of which are
categorized as securities trading and the balance as net interest
revenue, were higher in 1993 and the fourth quarter (compared with
the same 1992 periods) and reflected Citicorp's broadly based
franchise, customer demand for risk-management products,
proprietary activities and volatile market conditions during the
year. Derivative products include financial futures, interest rate
and currency swaps, options and equity and commodity contracts.
Operating expenses in the year and in the quarter rose 8% and
10% over the respective 1992 periods. Higher expenses for the
quarter reflected business expansion in developing economies, while
the increase for the year included investment spending, higher
incentive compensation related to trading activity, and charges
taken in the year for the withdrawal from the portfolio management
business for customers in India.
Credit costs were $195 million in the year, and a negative $8
million in the fourth quarter, the latter reflecting a recovery on
an Australian property. These results compare with $740 million in
1992 and $168 million in that year's fourth quarter. Cash-basis
loans of $755 million compare with $1.4 billion a year ago and $1.1
billion at the end of the 1993 third quarter.
Net income in the Global Finance businesses in North America,
Europe and Japan, excluding restructuring charges, was $992 million
for the year and $275 million for the fourth quarter, compared with
$521 million and $189 million in the respective 1992 periods. Both
the quarter's and the year's results benefited from strong
securities and foreign exchange trading activities, higher fee-
based revenues and improved credit costs in North America and
Europe.
Page 5
Revenues for North America, Europe and Japan were $4.0 billion
in 1993 and $987 million in the fourth quarter, compared with $3.6
billion and $944 million in the respective 1992 periods. Expenses
were $2.2 billion for the year and $574 million in the fourth
quarter, compared with $2.1 billion for 1992 and $541 million in
the 1992 fourth quarter.
Net income in the developing economies businesses, excluding
restructuring charges, was $773 million for the year and $247
million for the fourth quarter, up from $661 million and $116
million in the respective 1992 periods, on solid revenue growth.
The increases came despite continuing investment spending and the
India charge. Revenues for the year were $2.2 billion and $606
million for the fourth quarter, compared with $1.9 billion in 1992
and $413 million in the 1992 fourth quarter. Expenses for the year
were $1.1 billion and $283 million for the quarter, compared with
$937 million in 1992 and $236 million in the same 1992 quarter.
North America Commercial Real Estate
Citicorp Real Estate reported continued significant declines
in the troubled portfolio. Cash-basis loans and OREO decreased by
$634 million in the fourth quarter to $4.1 billion. This reduction
was due to multiple initiatives, including restructuring of loans,
sales, paydowns, writeoffs and writedowns. Cash-basis loans of
$1.7 billion were down from $2.7 billion at year-end 1992 and from
$2.1 billion at the end of the 1993 third quarter. OREO property
decreased to $2.4 billion, down from $2.9 billion at the 1992 year-
end and $2.5 billion at the end of the 1993 third quarter. The
reduction in cash-basis loans and OREO includes $576 million of
asset sales during 1993, the majority being commercial properties
and loans sold at a average of approximately 62% of their original
loan value.
Consistent with the reduction of the problem credits, total
exposure was reduced by $1.1 billion during the quarter to $13.6
billion, down 20%, or $3.4 billion, from the $17 billion reported
at the end of 1992.
North America Commercial Real Estate reported a net loss for
1993 of $621 million, half the 1992 loss of $1.3 billion. The net
loss in the fourth quarter was $114 million, compared with a loss
of $230 million in the same 1992 quarter. Reduced credit costs
were a key factor, as net writeoffs and writedowns for the year
were $688 million, down significantly from the $1.4 billion
reported for 1992. For the fourth quarter, net writeoffs and
writedowns were $105 million, down from $236 million in the same
1992 quarter.
Page 6
Cross-Border Refinancing Portfolio
The cross-border refinancing portfolio's net income for the
year was $92 million, compared with $403 million in 1992, when the
results benefited from the release of $253 million of credit
reserves. The 1993 results also included $97 million of interest
on Brazilian medium- and long-term outstandings, compared with $130
million in 1992.
Medium- and long-term exposure to refinancing countries was
$2.9 billion at year-end, compared with $3.3 billion at year-end
1992 and $3.0 billion at the end of the 1993 third quarter.
The restructuring of Brazil's medium- and long-term commercial
bank debt continues. Representatives of the Government of Brazil
and creditors began signing the external-debt financing package on
November 29, and to date creditors holding more than 96% of the
eligible debt have signed. The restructuring agreement, when
completed, would have generally positive future effects on the
company's earnings, but the timing and amounts cannot yet be
determined.
CAPITAL
The Tier 1 capital ratio at December 31, 1993, was an
estimated 6.5%, compared with 6.2% at September 30, 1993, and 4.9%
at December 31, 1992. Tier 1 capital rose approximately $563
million in the fourth quarter to $13.4 billion, compared with $12.8
billion at September 30, 1993, and $10.3 billion at December 31,
1992. The estimated combined Tier 1 and Tier 2 capital ratio at
December 31, 1993, was 11.2%, compared with 10.7% at September 30,
1993, and 9.6% at December 31, 1992.
OTHER ITEMS
Due to a favorable reassessment of future earnings
expectations, the valuation allowance for net deferred tax assets
was reduced by $200 million in the fourth quarter, with a
corresponding decrease in tax expense. Excluding this tax benefit,
income taxes in the fourth quarter would have been $185 million,
bringing the effective tax rate for the year to 40%, compared with
42% for the first nine months of 1993 and 49% for full-year 1992.
The reduction in the effective tax rate reflects improvements in
the level and mix of earnings.
Total employment was 81,500 at year-end 1993, compared with
81,000 a year earlier.
Page 7
Following are tables of financial highlights, an analysis of
operating margin pretax earnings, business results and credit
indicators, along with financial statements. Further details
concerning the financial results will be available in March in
Citicorp's Form 10-K.
Page 8
<TABLE>
KEY RATIOS & OTHER CONSOLIDATED FINANCIAL DATA
<CAPTION>
Fourth Quarter Full Year
1993 1992 1993 1992
----- ----- ---- -----
<S> <C> <C> <C> <C>
NET INCOME ($M):
Before Cumulative Effect
of Accounting Change... $ 575 $ 280 $1,919 $ 722
After Cumulative Effect
of Accounting Change(A) $ 575 $ 280 $2,219 $ 722
NET INCOME PER COMMON SHARE:
On Common & Common
Equivalent Shares
Before Cumulative Effect
of Accounting Change... $ 1.16 $ 0.53 $ 3.82 $ 1.35
After Cumulative Effect
of Accounting Change(A) $ 1.16 $ 0.53 $ 4.50 $ 1.35
Assuming Full Dilution
Before Cumulative Effect
of Accounting Change... $ 1.06 $ 0.53 $ 3.53 $ 1.35
After Cumulative Effect
of Accounting Change(A) $ 1.06 $ 0.53 $ 4.11 $ 1.35
COMMON EQUITY PER SHARE.. $ 26.04 $ 21.74
CLOSING STOCK PRICE
AT QUARTER END.......... $ 36.88 $ 22.25
PROFITABILITY RATIOS (Annualized):
Return on Assets:
Before Accounting Change 0.98% 0.49% 0.84% 0.32%
After Accounting Change(A) 0.98% 0.49% 0.97% 0.32%
Return on Common Stockholders'
Equity:
Before Accounting Change 19.9% 10.7% 17.7% 6.5%
After Accounting Change(A) 19.9% 10.7% 21.1% 6.5%
Return on Total Equity:
Before Accounting Change 16.7% 10.2% 15.3% 7.2%
After Accounting Change(A) 16.7% 10.2% 17.7% 7.2%
CAPITAL:
Tier 1 ($B)............. $ 13.4 $ 10.3
Tier 1 & 2 ($B) (B)..... $ 23.2 $ 20.1
Tier 1 Ratio (B)........ 6.5% 4.9%
Tier 1 & 2 Ratio (B).... 11.2% 9.6%
Common Equity as a
% of Total Assets..... 4.6% 3.7%
Total Equity as a
% of Total Assets..... 6.4% 5.2%
DIVIDENDS DECLARED ($M):
Preferred............. $ 86 $ 61 $ 312 $ 212
<FN>
(A) Includes cumulative effect of adopting Statement of
Financial Accounting Standards No. 109, "Accounting
for Income Taxes", as of January 1, 1993.
(B) Estimated.
</TABLE>
Page 9
<TABLE>
OPERATING MARGIN
($ Millions)
<CAPTION>
Fourth Quarter Full Year
1993 1992 1993 1992
------ ------ ------- -------
<S> <C> <C> <C> <C>
Total Revenue ......... $4,152 $4,005 $16,075 $15,621
Effect of Credit Card
Securitization........ 292 365 1,282 1,390
Net Cost to Carry(A)... 43 96 252 421
Capital Building
Transactions(B)....... 61 (234) 2 (820)
------ ------ ------- -------
Adjusted Revenue....... $4,548 $4,232 $17,611 $16,612
------ ------ ------- -------
Total Operating
Expense............... $3,021 $2,553 $10,615 $10,057
Net OREO Costs (C)..... 3 (66) (245) (347)
Restructuring Charges.. (425) (67) (425) (227)
------ ------ ------- -------
Adjusted Operating
Expense............... $2,599 $2,420 $ 9,945 $ 9,483
------ ------ ------- -------
Operating Margin....... $1,949 $1,812 $ 7,666 $ 7,129
Consumer Credit
Costs (D)............. 651 836 2,740 3,309
Commercial Credit
Costs (E)............. 126 478 1,036 2,458
------ ------ ------- -------
Operating Margin
Less Credit Costs..... $1,172 $ 498 $ 3,890 $ 1,362
Add'l Provision(F):
- -Consumer.............. 63 77 276 215
- -Commercial............ 63 125 327 575
- -Cross-Border
Refinancing.......... - (9) - (253)
Capital Building
Transactions (B)...... (61) 234 (2) 820
Restructuring Charges.. 425 67 425 227
------ ------ ------- -------
Income Before Taxes and
Cumulative Effect of
Accounting Change.... $ 560 $ 472 $ 2,860 $ 1,418
====== ====== ======= =======
<FN>
(A) Principally the net cost to carry commercial cash-basis
loans and Other Real Estate Owned (OREO).
(B) Fourth quarter and full year 1993 amounts include $107 MM
related to gains on sales of Brazil bonds and $179 MM of
business write-downs, primarily related to Quotron.
(C) Principally net write-downs and net direct expenses
related to commercial OREO.
(D) Principally net credit write-offs adjusted for the effect
of credit card securitization.
(E) Includes commercial net credit write-offs, net cost to
carry and net OREO costs.
(F) Represents provision for credit losses above/(below) net
write-offs.
</TABLE>
Page 10
<TABLE>
BUSINESS FOCUS
Net Income (Loss)
($ Millions)
<CAPTION>
Fourth Quarter Full Year
1993 1992(A) 1993 1992(A)
------ ------ ------ -------
<S> <C> <C> <C> <C>
Global Consumer:
North America, Europe
and Japan............ $ 89 $ 137 $ 665 $ 439
Developing Economies... 146 104 556 448
------ ------ ------ -------
Total Global Consumer... $ 235 $ 241 $1,221 $ 887
------ ------ ------ -------
Global Finance:
North America, Europe
and Japan............ $ 192 $ 174 $ 909 $ 490
Developing Economies... 235 109 761 643
------ ------ ------ -------
Total Global Finance.... $ 427 $ 283 $1,670 $ 1,133
------ ------ ------ -------
North America Commercial
Real Estate........... $ (114) $ (230) $ (621) $(1,316)
Cross-Border Refinancing
Portfolio............. 10 98 92 403
Corporate Items(B)...... 17 (112) (443) (385)
------ ------ ------ -------
$ 575 $ 280 $1,919 $ 722
Cumulative Effect of
Accounting Change(C).. - - 300 -
------ ------ ------ -------
Citicorp................ $ 575 $ 280 $2,219 $ 722
====== ====== ====== =======
Core Business Results
(Excluding After-tax
Restructuring Charges)
Global Consumer:
North America, Europe
and Japan............ $ 228 $ 154 $ 804 $ 513
Developing Economies... 150 109 560 456
------ ------ ------ -------
Total Global Consumer... $ 378 $ 263 $1,364 $ 969
====== ====== ====== =======
Global Finance:
North America, Europe
and Japan............ $ 275 $ 189 $ 992 $ 521
Developing Economies... 247 116 773 661
------ ------ ------ -------
Total Global Finance.... $ 522 $ 305 $1,765 $ 1,182
====== ====== ====== =======
<FN>
(A) Reclassified to conform to current quarter's presentation.
(B) Corporate Items includes the effects of capital building
transactions and business write-downs. Results for the
fourth quarter and full year 1993 also reflect after-tax
restructuring charges of $16 million. Results in the
comparable 1992 periods included after-tax restructuring
charges of $(4) million and $ (8) million, respectively.
Additionally, Corporate Items reflects the recognition of
$200 million of deferred tax benefits in the fourth
quarter of 1993.
(C) Represents cumulative effect of adopting Statement of
Financial Accounting Standards No. 109, "Accounting for
Income Taxes," as of January 1, 1993.
</TABLE>
Page 11
<TABLE>
GLOBAL CONSUMER
($ Millions)
<CAPTION>
Fourth Quarter % Full Year %
1993 1992(A) Chg 1993 1992(A) Chg
------ ------ --- ------ ------ ---
<S> <C> <C> <C> <C> <C> <C>
Total Revenue......... $2,511 $2,400 5 $ 9,600 $ 9,285 3
------ ------ ------- -------
Restructuring Charges. $ 233 $ 33 N/M $ 233 $ 130 79
Other Operating Exp... 1,556 1,490 4 5,965 5,789 3
------ ------ ------- -------
Total Operating Exp... $1,789 $1,523 17 $ 6,198 $ 5,919 5
------ ------ ------- -------
Provision For
Credit Losses ....... $ 414 $ 548 (24) $ 1,686 $ 2,134 (21)
------ ------ ------- -------
Income Before Taxes... $ 308 $ 329 (6) $ 1,716 $ 1,232 39
Income Taxes.......... 73 88 (17) 495 345 43
------ ------ ------- -------
Net Income............ $ 235 $ 241 (2) $ 1,221 $ 887 38
====== ====== ======= =======
OTHER DATA:
Average Assets ($B)... 101 103 (2) 100 106 (6)
Return on Assets...... 0.92% 0.93% - 1.22% 0.84% -
Adjusted for Credit-
Related Items:
Total Revenue(B).... $2,802 $2,765 1 $10,892 $10,675 2
Other Operating
Expense(C)........ 1,547 1,490 4 5,927 5,789 2
Credit Costs (D).... 651 836 (22) 2,740 3,309 (17)
<FN>
(A) Reclassified to conform to current quarter's presentation.
(B) Adjusted principally for the effect of credit card
securitization.
(C) Fourth quarter and full year 1993 amounts exclude net
write-downs and net direct expenses 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 $399 million and $1,733 million for 1993 fourth quarter
and full year, respectively, and $514 million and $2,129
million for the comparable periods of 1992.
N/M Not meaningful as percentage exceeds 100%.
</TABLE>
Page 12
<TABLE>
GLOBAL FINANCE
($ Millions)
<CAPTION>
Fourth Quarter % Full Year %
1993 1992(A)Chg 1993 1992(A) Chg
------ ------ --- ------ ------ ---
<S> <C> <C> <C> <C> <C> <C>
Total Revenue.......... $1,582 $1,328 19 $6,108 $ 5,406 13
------ ------ ------ -------
Restructuring Charges.. $ 156 $ 35 N/M $ 156 $ 76 N/M
Other Operating Expense 822 794 4 3,279 3,137 5
------ ------ ------ -------
Total Operating Expense $ 978 $ 829 18 $3,435 $ 3,213 7
------ ------ ------ -------
Provision For
Credit Losses......... $ 16 $ 147 (89) $ 305 $ 644 (53)
------ ------ ------ -------
Income Before Taxes.... $ 588 $ 352 67 $2,368 $ 1,549 53
Income Taxes........... 161 69 N/M 698 416 68
------ ------ ------ -------
Net Income............. $ 427 $ 283 51 $1,670 $ 1,133 47
====== ====== ======= =======
OTHER DATA:
Average Assets ($B).... 114 102 12 109 96 14
Return on Assets....... 1.49% 1.10% - 1.53% 1.18% -
Adjusted for Credit-
Related Items:
Total Revenue (B).... 1,593 1,357 17 6,166 5,530 12
Other Operating
Expense (C)......... 857 777 10 3,299 3,066 8
Credit Costs (D)..... (8) 168 N/M 195 740 (74)
<FN>
(A) Reclassified to conform to current quarter's presentation.
(B) After adding back the net cost to carry cash-basis loans
and OREO.
(C) Excludes net write-downs and net direct expenses related to
OREO.
(D) Includes net write-offs, the net cost to carry cash-basis
loans and OREO, as well as net write-downs (recoveries) and
net direct expenses related to OREO.
N/M Not meaningful as percentage exceeds 100%.
</TABLE>
Page 13
<TABLE>
NORTH AMERICA COMMERCIAL REAL ESTATE
($ Millions)
<CAPTION>
Fourth Quarter % Full Year %
1993 1992(A) Chg 1993 1992(A) Chg
------ ------ --- ----- ------ ---
<S> <C> <C> <C> <C> <C> <C>
Total Revenue.......... $ 8 $ (13) N/M $ (11) $ (45) 76
----- ------ ------- -------
Total Operating Expense $ 60 $ 85 (29) $ 377 $ 424 (11)
----- ------ ------- -------
Provision For
Credit Losses......... $ 141 $ 294 (52) $ 610 $ 1,622 (62)
----- ------ ------- -------
(Loss) Before Taxes.... $(193) $ (392) 51 $ (998) $(2,091) 52
Income Taxes........... (79) (162) 51 (377) (775) 51
----- ------ ------- -------
Net (Loss)............. $(114) $ (230) 50 $ (621) $(1,316) 53
===== ====== ======= =======
OTHER DATA:
Average Assets ($B).... 11 14 (21) 12 14 (14)
Adjusted for Credit-
Related Items:
Total Revenue (B).... 41 54 (24) 173 252 (31)
Total Operating
Expense (C)......... 37 36 3 150 148 1
Credit Costs (D)..... 134 310 (57) 842 1,719 (51)
<FN>
(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 net direct 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 net direct
expenses related to OREO.
N/M Not meaningful as percentage exceeds 100%.
</TABLE>
Page 14
<TABLE>
CROSS-BORDER REFINANCING PORTFOLIO
($ Millions)
<CAPTION>
Fourth Quarter % Full Year %
1993 1992(A) Chg 1993 1992(A) Chg
------ ------ --- ------ ------ ---
<S> <C> <C> <C> <C> <C> <C>
Total Revenue ......... $ 23 $ 83 (72) $ 126 $ 196 (36)
------ ------ ------ -------
Operating Expense...... $ 8 $ 7 14 $ 28 $ 29 (3)
------ ------ ------ -------
Provision For
Credit Losses......... $ - $ (9) N/M $ (1) $ (254) N/M
------ ------ ------ -------
Income Before Taxes $ 15 $ 85 (82) $ 99 $ 421 (76)
Income Taxes........... 5 (13) N/M 7 18 (61)
------ ------ ------ -------
Net Income............. $ 10 $ 98 (90) $ 92 $ 403 (77)
====== ====== ====== =======
OTHER DATA:
Average Assets ($B).... 3 4 (25) 3 4 (25)
(A) Reclassified to conform to current quarter's presentation.
</TABLE>
<TABLE>
CORPORATE ITEMS
($ Millions)
<CAPTION>
Fourth Quarter % Full Year %
1993 1992(A) Chg. 1993 1992(A) Chg
------ ------ --- ------ ------- ---
<S> <C> <C> <C> <C> <C> <C>
Total Revenue (B)....... $ 28 $ 207 (86) $ 252 $ 779 (68)
------ ------ ------ -------
Restructuring Charges... $ 36 $ (1) N/M $ 36 $ 21 71
Operating Expense....... 150 110 36 541 451 20
------ ------ ------ -------
Total Operating Expense. $ 186 $ 109 71 $ 577 $ 472 22
------ ------ ------ -------
Income (Loss) Before
Taxes.................. $(158) $ 98 N/M $ (325) $ 307 N/M
Income Taxes............ (175) 210 N/M 118 692 (83)
------ ------ ------ -------
Net Income (Loss) (B)... $ 17 $ (112) N/M $ (443) $ (385) (15)
====== ====== ====== =======
<FN>
(A) Reclassified to conform to current quarter's presentation.
(B) Corporate Items includes the effects of business write-
downs and capital building transactions. Additionally,
Corporate Items reflects the recognition of $200 million
of deferred tax benefits in the fourth quarter of 1993
and also includes the offset created by attributing income
taxes to business activities on a local tax basis.
N/M Not meaningful as percentage exceeds 100%.
</TABLE>
Page 15
<TABLE>
ASSET QUALITY
COMMERCIAL CASH-BASIS LOANS AND OREO
($ Millions)
<CAPTION>
4th Q 3rd Q 2nd Q 1st Q 4th Q
1993 1993 1993 1993 1992
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
North America Commercial
Real Estate............. $1,719 $2,138 $2,474 $2,593 $2,734
Global Finance........... 755 1,063 1,346 1,267 1,388
----- ----- ----- ----- -----
Total Commercial
Cash-Basis Loans........ $2,474 $3,201 $3,820 $3,860 4,122
Commercial OREO.......... 2,796 3,122 3,479 3,721 3,457
----- ----- ----- ----- -----
Total Commercial Cash-
Basis Loans & OREO...... $5,270 $6,323 $7,299 $7,581 7,579
----- ----- ----- ----- -----
Cross-Border Refinancing
Cash-Basis Loans........ $1,041 $1,068 $1,082 $1,242 $1,302
ALLOWANCE FOR CREDIT LOSSES
($ Millions)
4th Q 3rd Q 2nd Q 1st Q 4th Q
1993 1993 1993 1993 1992
----- ----- ----- ----- -----
Global Consumer.......... $1,596 $1,550 $1,491 $1,412 $1,338
Commercial............... 2,545 2,482 2,394 2,296 2,221
Cross-Border Refinancing. 238 228 205 325 300
----- ----- ----- ----- -----
Total.................... $4,379 $4,260 $4,090 $4,033 $3,859
===== ===== ===== ===== =====
Reserve for Global
Consumer Sold Portfolios. $ 527 $ 559 $ 557 $ 557 544
ALLOWANCE AS A PERCENTAGE
OF TOTAL LOANS
4th Q 3rd Q 2nd Q 1st Q 4th Q
1993 1993 1993 1993 1992
------ ------ ------ ------ ------
Global Consumer.......... 1.89% 1.89% 1.83% 1.75% 1.60%
Commercial............... 4.88% 4.49% 4.35% 4.25% 4.19%
Total(A)................. 3.15% 3.05% 2.94% 2.92% 2.76%
ADDITIONAL DATA
4th Q 3rd Q 2nd Q 1st Q 4th Q
1993 1993 1993 1993 1992
------ ------ ------ ------ ------
Commercial Allowance as %
of Commerical Cash-Basis
Loans................... 102.9% 77.5% 62.7% 59.5% 53.9%
Commercial Renegotiated
Loans(B)................ $ 669 $ 337 $ 107 $ 96 $ 283
Consumer OREO............ $1,212 $1,283 $1,312 $1,314 $1,258
<FN>
(A) Includes the Cross-Border Refinancing Portfolio allowance
and related portfolio.
(B) Excludes renegotiated cross-border outstandings. Amount
at December 31, 1993 includes approximately $325 million
of loans that have been renegotiated during the year at
a market rate of interest.
</TABLE>
Page 16
<TABLE>
DETAILS OF CREDIT LOSS EXPERIENCE
($ Millions)
<CAPTION>
4th Q 3rd Q 2nd Q 1st Q 4th Q
1993 1993 1993 1993 1992
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Net Write-Offs:
Global Consumer........... $ 351 $ 356 $ 367 $ 336 $ 471
North America Commercial
Real Estate.............. 78 49 136 168 194
Global Finance............ 16 69 36 36 122
----- ----- ----- ----- -----
Total Non-Refinancing
Commercial.............. $ 94 $ 118 $ 172 $ 204 $ 316
----- ----- ----- ----- -----
Cross-Border
Refinancing (A).......... (10) (23) 120 (26) (9)
----- ----- ----- ----- -----
Total..................... $ 435 $ 451 $ 659 $ 514 $ 778
===== ===== ===== ===== =====
4th Q 3rd Q 2nd Q 1st Q 4th Q
1993 1993 1993 1993 1992
----- ----- ----- ----- -----
Provision for
Credit Losses:
Global Consumer........... $ 414 $ 419 $ 442 $ 411 $ 548
North America Commercial
Real Estate.............. 141 115 186 168 294
Global Finance............ 16 91 87 111 147
----- ----- ----- ----- -----
Total Non-Refinancing
Commercial.............. $ 157 $ 206 $ 273 $ 279 $ 441
----- ----- ----- ----- -----
Cross-Border
Refinancing.............. - - - (1) (9)
----- ----- ----- ----- -----
Total..................... $ 571 $ 625 $ 715 $ 689 $ 980
===== ===== ===== ===== =====
Net OREO Write-downs (Recoveries):
North American Commercial
Real Estate............. $ 27 $ 73 $ 65 $ 92 $ 42
Global Finance........... (30) 13 (1) 4 16
----- ----- ----- ----- -----
Total.................... $ (3) $ 86 $ 64 $ 96 $ 58
===== ===== ===== ===== =====
(A) Includes gross write-offs of $152 million in the
second quarter of 1993 related to Citicorp's medium-
and long-term outstandings to Brazil.
</TABLE>
Page 17
<TABLE>
STATEMENT OF OPERATIONS CITICORP and Subsidiaries
(In Millions of Dollars,
Except Per Share Amounts)
<CAPTION>
Fourth Quarter % Full Year %
1993 1992 Chg 1993 1992 Chg
------ ------- --- ------- ------- ---
<S> <C> <C> <C> <C> <C> <C>
Interest Revenue....... $6,254 $6,008 4 $23,811 $23,783 -
Interest Expense....... 4,247 4,151 2 16,121 16,327 (1)
------ ------- ------- -------
Net Interest Revenue... $2,007 $1,857 8 $ 7,690 $ 7,456 3
------ ------- ------- -------
Fees & Commissions.... $1,357 $1,283 6 $ 5,057 $ 5,084 (1)
Trading Account....... 269 35 N/M 939 326 N/M
Foreign Exchange...... 158 264 (40) 995 1,005 (1)
Inv Securities Trans.. 3 (16) N/M 94 12 N/M
Other Revenue......... 358 582 (38) 1,300 1,738 (25)
------ ------- ------- -------
Total Fees, Commissions
and Other Revenue..... $2,145 $2,148 - $ 8,385 $ 8,165 3
------ ------- ------- -------
TOTAL REVENUE.......... $4,152 $4,005 4 $16,075 $15,621 3
------ ------- ------- -------
PROVISION FOR
CREDIT LOSSES......... $ 571 $ 980 (42) $ 2,600 $ 4,146 (37)
------ ------- ------- -------
Operating Expense:
Salaries............. $ 978 $ 911 7 $ 3,817 $ 3,683 4
Staff Benefits....... 264 234 13 1,028 965 7
Net Premises &
Equipment Expense.... 401 425 (6) 1,601 1,680 (5)
Restructuring Charges 425 67 N/M 425 227 87
Other Expense........ 953 916 4 3,744 3,502 7
------ ------- ------- -------
TOTAL OPERATING EXPENSE $3,021 $2,553 18 $10,615 $10,057 6
------ ------- ------- -------
INCOME BEFORE TAXES
AND CUMULATIVE EFFECT
OF ACCOUNTING CHANGE.. $ 560 $ 472 19 $ 2,860 $ 1,418 N/M
Income Taxes.......... (15) 192 N/M 941 696 35
------ ------- ------- -------
INCOME BEFORE CUMULATIVE
EFFECT OF ACCOUNTING
CHANGE................ $ 575 $ 280 N/M $ 1,919 $ 722 N/M
Cumulative Effect of
Accounting Change(A)... - - - 300 - N/M
------ ------- ------- -------
NET INCOME............. $ 575 $ 280 N/M $ 2,219 $ 722 N/M
====== ======= ======= =======
INCOME APPLICABLE
TO COMMON STOCK....... $ 488 $ 212 N/M $ 1,900 $ 497 N/M
======= ====== ======= =======
EARNINGS PER SHARE :
On Common & Common Equiv. Shs
Income Bef. Cumulative
Effect of Acctg Chg.. $ 1.16 $ 0.53 $ 3.82 $ 1.35
Cumulative Effect of
Accounting Change(A). $ - $ - $ 0.68 $ -
Net Income............ $ 1.16 $ 0.53 $ 4.50 $ 1.35
Assuming Full Dilution
Income Bef. Cumulative
Effect of Acctg Chg.. $ 1.06 $ 0.53 $ 3.53 $ 1.35
Cumulative Effect of
Accounting Change(A). $ - $ - $ 0.58 $ -
Net Income............ $ 1.06 $ 0.53 $ 4.11 $ 1.35
<FN>
(A) Represents cumulative effect of adopting Statement of
Financial Accounting Standards No. 109, "Accounting for
Income Taxes", as of January 1, 1993.
N/M Not meaningful as percentage exceeds 100%.
</TABLE>
Page 18
<TABLE>
CONSOLIDATED BALANCE SHEET CITICORP and Subsidiaries
(In Millions of Dollars)
<CAPTION>
Dec. 31 Dec. 31 %
1993 1992 Change
-------- -------- ------
<S> <C> <C> <C>
ASSETS
Cash and Due from Banks........ $ 4,836 $ 5,138 (6)
Deposits at Interest w/ Banks.. 6,749 6,550 3
Investment Securities:
At cost....................... 5,637 6,515 (13)
At lower of cost or market.... 8,705 7,213 21
At market..................... 1,489 1,328 12
Trading Account Assets......... 18,117 17,085 6
Federal Funds Sold &
Securities Purchased
Under Resale Agreements....... 7,339 6,381 15
Loans, Net
Consumer...................... $ 84,354 $ 83,453 1
Commercial.................... 54,613 56,257 (3)
-------- --------
Total Loans................ $138,967 $139,710 (1)
Allowance for Credit Losses.... (4,379) (3,859) (13)
-------- --------
Total Loans, Net........... $134,588 $135,851 (1)
Customers' Acceptance Liability $ 1,512 $ 1,802 (16)
Premises & Equipment, Net...... 3,842 3,819 1
Interest & Fees Receivable..... 2,552 2,721 (6)
Other Assets................... 21,208 19,298 10
-------- --------
Total.......................... $216,574 $213,701 1
======== ========
LIABILITIES
Non-Int. Deposits (in the U.S.) $ 13,442 $ 13,572 (1)
Int. Deposits (in the U.S.).... 38,347 44,175 (13)
Non-Int. Deposits (Outside the
U.S.)......................... 6,644 5,243 27
Int. Deposits (Outside the
U.S.)......................... 86,656 81,185 7
-------- --------
Total Deposits............. $145,089 $144,175 1
Securities Sold,
Not Yet Purchased............. 2,352 1,894 24
Purchased Funds &
Other Borrowings.............. 16,777 18,120 (7)
Acceptances Outstanding........ 1,531 1,866 (18)
Accrued Taxes & Other Expenses. 6,452 5,049 28
Other Liabilities.............. 12,260 11,244 9
Long-Term Debt................. 15,983 16,886 (5)
Subordinated Capital Notes..... 2,150 3,250 (34)
Redeemable Preferred Stock..... 27 36 (25)
STOCKHOLDERS' EQUITY
Preferred Stock
(Without Par Value)........... $ 3,887 $ 3,212 21
Common Stock (Par value $1.00). 412 392 5
Surplus........................ 3,898 3,598 8
Retained Earnings.............. 6,149 4,368 41
Common Stock in Treasury,
at Cost....................... (393) (389) (1)
-------- --------
Total Stockholders' Equity. $ 13,953 $ 11,181 25
-------- --------
Total.......................... $216,574 $213,701 1
======== ========
</TABLE>
Page 19
<TABLE>
ADDITIONAL FINANCIAL INFORMATION
<CAPTION>
Fourth Quarter Full Year
1993 1992 1993 1992
------ ------ ------ ------
<S> <C> <C> <C> <C>
NET INTEREST REVENUE(A)
($ Millions)
Net Interest Revenue....... $2,012 $1,864 $ 7,705 $7,475
Net Interest Margin........ 3.94% 3.73% 3.88% 3.76%
ADJUSTED TO EXCLUDE
THE EFFECT OF CREDIT
CARD SECURITIZATION:
Net Interest Revenue...... $2,553 $2,492 $10,024 $9,552
Net Interest Margin....... 4.48% 4.45% 4.50% 4.32%
Fourth Quarter Full Year
1993 1992(B) 1993 1992(B)
------ ------ ------ ------
OTHER REVENUE
($ Millions)
Affiliate Earnings......... $ 99 $ 39 $ 211 $ 164
Securitized Credit
Card Receivables.......... 285 263 1,083 603
Net (Losses) from
Mortgage Pass-Through
Securitization Activity(C) (32) (27) (135) (122)
Venture Capital Gains...... 59 66 143 192
Net Gains/(Losses) on the
Sale/Disposition of
Assets(D)................. (61) 238 1 753
Foreign Currency
Translation (Losses)...... (15) (14) (50) (11)
Other Items................ 23 17 47 159
------ ------ ------- ------
Total.................... $ 358 $ 582 $ 1,300 $1,738
====== ====== ======= ======
(A) Taxable Equivalent Basis.
(B) Reclassified to conform to current quarter's presentation.
(C) Represents impairment related to excess servicing fees
receivable and credit costs in connection with recourse
obligations partially offset by gains on sale of mortgage
pass-throughs.
(D) Fourth quarter and full year 1993 amounts include business
write-downs totaling $179 million.
</TABLE>
Page 20
<TABLE>
CONSOLIDATED AVERAGE BALANCES
<CAPTION>
Fourth Quarter % Full Year %
1993 1992 Chg 1993 1992 Chg
-------- -------- --- -------- -------- ---
<S> <C> <C> <C> <C> <C> <C>
Loans ($B):
Consumer....... $ 82 $ 85 (4) $ 81 $ 89 (9)
Commercial..... 57 59 (3) 58 59 (2)
-------- -------- -------- --------
Total
Loans.......... $ 139 $ 144 (3) $ 139 $ 148 (6)
======== ======== ======== ========
Total
Assets($B)..... $ 233 $ 228 2 $ 228 $ 226 1
Interest Earning
Assets($B).... $ 203 $ 199 2 $ 199 $ 199 -
Common Stockholders'
Equity ($M).... $ 9,728 $ 7,853 24 $ 9,020 $ 7,660 18
Preferred
Equity ($M).... 3,887 3,023 29 3,491 2,381 47
-------- -------- -------- --------
Total Stockholders'
Equity ($M).... $ 13,615 $ 10,876 25 $ 12,511 $ 10,041 25
======== ======== ======== ========
COMMON SHARES OUTSTANDING
(In Thousands)
End-Of-Period... 386,490 366,489 5
Weighted Average for Purposes
of Earnings Per Share:
Common & Common
Equivalent
Shares(A)..... 441,314 433,385 2 443,023 381,827 16
Assuming Full
Dilution(B).... 514,629 433,385 19 518,477 381,827 36
<FN>
(A) For 1993, includes shares related to the assumed conversion
of Conversion Preferred Stock, Series 15 (Conversion
Preferred Stock) issued in the fourth quarter of 1992.
For purposes of computing earnings per share, the
dividends related to the Conversion Preferred Stock
are added back to income applicable to common stock.
(B) For 1993, includes shares related to the assumed conversion
of the Conversion Preferred Stock and Convertible Preferred
Stock, Series 12 and 13. For purposes of computing
earnings per share in 1993, the dividends related to the
Conversion Preferred Stock and Convertible Preferred Stock
are added back to income applicable to common stock.
Conversion of the Convertible Preferred Stock was not
assumed for 1992 as it would have been antidilutive.
</TABLE>
PAGE 21
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: January 21, 1994
<TABLE>
CITICORP AND SUBSIDIARIES
CALCULATION OF RATIO OF INCOME TO FIXED CHARGES
(In Millions)
EXCLUDING INTEREST ON DEPOSITS
<CAPTION>
1993 1992 1991 1990 1989
------ ------- ------- ------- -------
<S> <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
INTEREST FACTOR IN RENT EXPENSE 147 162 171 173 161
------- ------- ------- ------- -------
TOTAL FIXED CHARGES 6,471 5,988 6,144 9,587 11,643
INCOME:
ADJUSTED NET INCOME(LOSS) 1,919 (B) 722 (914)(C) 318(D) 498
INCOME TAXES 941 696 677 508 1,035
FIXED CHARGES (A) 6,471 5,988 6,144 9,587 11,643
------- ------- ------- ------- -------
TOTAL INCOME 9,331 7,406 5,907 10,413 13,176
======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS 1.44 1.24 0.96(E) 1.09 1.13
======= ======= ======= ======= =======
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE 16,121 16,327 17,089 23,798 24,218
INTEREST FACTOR IN RENT EXPENSE 147 162 171 173 161
------- ------- ------- ------- -------
TOTAL FIXED CHARGES 16,268 16,489 17,260 23,971 24,379
INCOME:
NET INCOME(LOSS) 1,919(B) 722 (914)(C) 318(D) 498
INCOME TAXES 941 696 677 508 1,035
FIXED CHARGES 16,268 16,489 17,260 23,971 24,379
------- ------- ------- ------- -------
TOTAL INCOME 19,128 17,907 17,023 24,797 25,912
======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS 1.18 1.09 0.99 (E) 1.03 1.06
======= ======= ======= ======= =======
<FN>
(A) PRIOR YEARS HAVE BEEN RECLASSIFIED TO CONFORM TO CURRENT YEAR'S PRESENTATION.
(B) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1993 EXCLUDES 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) EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1991 WERE INADEQUATE TO COVER FIXED CHARGES BY THE AMOUNT OF
$237 MILLION.
</FN>
</TABLE>
<TABLE>
CITICORP AND SUBSIDIARIES
CALCULATION OF RATIO OF INCOME TO FIXED CHARGES
INCLUDING PREFERRED STOCK DIVIDENDS
(In Millions)
<CAPTION>
1993 1992 1991 1990 1989
------- ------- ------- ------- -------
<S> <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
INTEREST FACTOR IN RENT EXPENSE 147 162 171 173 161
DIVIDENDS - PREFERRED STOCK 465 416 271(B) 361 385
------- ------- ------- ------- -------
TOTAL FIXED CHARGES 6,936 6,404 6,415 9,948 12,028
INCOME:
NET INCOME(LOSS) 1,919(C) 722 (914)(D) 318(E) 498
INCOME TAXES 941 696 677 508 1,035
FIXED CHARGES (EXCLUDING
PREFERRED STOCK DIVIDENDS)(A) 6,471 5,988 6,144 9,587 11,643
------- ------- ------- ------- -------
TOTAL INCOME 9,331 7,406 5,907 10,413 13,176
======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS 1.35 1.16 0.92(F) 1.05 1.10
======= ======= ======= ======= =======
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE 16,121 16,327 17,089 23,798 24,218
INTEREST FACTOR IN RENT EXPENSE 147 162 171 173 161
DIVIDENDS - PREFERRED STOCK 465 416 271(B) 361 385
------- ------- ------- ------- -------
TOTAL FIXED CHARGES 16,733 16,905 17,531 24,332 24,764
INCOME:
NET INCOME(LOSS) 1,919(C) 722 (914)(D) 318(E) 498
INCOME TAXES 941 696 677 508 1,035
FIXED CHARGES (EXCLUDING
PREFERRED STOCK DIVIDENDS) 16,268 16,489 17,260 23,971 24,379
------- ------- ------- ------- -------
TOTAL INCOME 19,128 17,907 17,023 24,797 25,912
======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS 1.14 1.06 0.97 (F) 1.02 1.05
======= ======= ======= ======= ======
<FN>
(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 YEAR ENDED DECEMBER 31, 1993 EXCLUDES 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) EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1991 WERE INADEQUATE TO COVER FIXED CHARGES BY THE AMOUNT OF $508
MILLION.
</FN>
</TABLE>
