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): October 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 October 18, 1994 Citicorp reported net income of $894
million, or $1.67 per common share, a record for any quarter.
These earnings compared with $528 million, or $0.97 cents per
share, in the 1993 third quarter and $877 million, or $1.64 per
share, in the 1994 second quarter.
In the 1994 nine months, net income was $2.3 billion, or
$4.33 per share, compared with $1.6 billion, or $3.05 per share,
in the same 1993 period.
John S. Reed, Citicorp Chairman, commented: "The excellent
quarterly and nine month results showed the strength of the
global franchise and our consumer businesses. Trading revenues
were up from the second quarter and back to more normal levels
but below last year."
He added: "Return on common equity was 25% for the nine
months and we further strengthened the balance sheet. Total
capital now exceeds $25 billion, reserves are over $5 billion and
asset quality continues to improve."
Adjusted revenues in the third quarter, also a record,
totaled $4.6 billion, up 8% from the 1994 second quarter and 3%
from the same 1993 quarter -- or up 5% and 9%, respectively,
excluding trading. (Adjusted revenues exclude credit-related
costs, the effect of credit card securitization and capital
building transactions.) Trading revenues in the third quarter
amounted to $287 million, up from $159 million in the 1994 second
quarter but well below the strong 1993 third quarter revenues of
$478 million.
Operating expenses (adjusted to exclude the cost of Other
Real Estate Owned) were $2.6 billion, up 6% from the 1994 second
quarter and 5% from the same 1993 quarter. Major factors in the
increases from the 1993 quarter were continued expansion of
businesses in emerging markets, marketing spending in card
businesses around the world and continued investments in
operational efficiencies.
Improvement in credit portfolios continued, with a decline
in the quarter of commercial cash-basis loans and OREO by $360
million to $4.3 billion. Commercial credit costs were $40
million, compared with $73 million in the 1994 second quarter and
$233 million in the 1993 third quarter. Consumer credit costs
also decreased in the quarter, totaling $544 million, compared
with $585 million in the 1994 second quarter and $665 million in
the 1993 third quarter.
Return on common equity (excluding accounting changes)
continued to improve, rising to 26.5% for the quarter and 25.2%
for the nine months, compared with 19.2% and 16.9% for the same
1993 periods. Return on total stockholders' equity in the
quarter was 22.0%.
The company continued to strengthen its balance sheet. Total
regulatory capital at September 30, 1994 was $25.4 billion,
estimated to be 11.7% of risk-adjusted assets, and the Tier 1
capital ratio increased to an estimated 7.3% from 7.1% at the end
of the 1994 second quarter. At September 30, 1993, the total
capital ratio was 10.7% and the Tier 1 ratio was 6.2%.
Loan loss reserves were built by $100 million in the quarter
to $5.1 billion at September 30, 1994, compared with $4.3 billion
at September 30, 1993.
The effective tax rate for current operations in the first
nine months was reduced to 34% from the 37% reported in the first
six months of 1994 and from 42% in the first nine months of 1993,
reflecting an improved level and mix of earnings in the current
year.
CORE BUSINESS RESULTS
Global Consumer
Net income for the Global Consumer businesses in the third
quarter reached a record $477 million, compared with $349 million
in the 1993 third quarter and $411 million in the 1994 second
quarter. Credit costs in North America continued to improve,
particularly in the U.S. credit card business, while revenues in
the emerging economies increased 23% over the same 1993 quarter.
In the first nine months, net income was $1.3 billion,
compared with $936 million in the same 1993 period.
The consumer businesses in North America, Europe and Japan
earned $308 million in the quarter, compared with $216 million in
the same 1993 quarter and $250 million in the 1994 second
quarter. Consumer businesses in the emerging economies earned
$169 million, compared with $133 million in the 1993 third
quarter and $161 million in the 1994 second quarter.
Adjusted revenues of $2.9 billion in the quarter grew 5%
from the same 1993 quarter and 4% from the 1994 second quarter.
The improvements over the 1993 quarter were due to higher net
interest revenue and fees in the emerging economies, with the
improvement over the 1994 second quarter reflecting higher net
interest revenue in the U.S. credit card business and in emerging
economies.
New pricing strategies for credit cards resulted in managed
U.S. receivables of $35 billion at September 30, 1994, up $2.4
billion, or 7%, from September 30, 1993; total accounts of 22
million, up 2.6 million, or 14%, from September 30, 1993; and
total charge volumes in the quarter of $18 billion, up $3.5
billion, or 24%, from the same 1993 quarter.
Operating expenses rose 3% from the 1993 third quarter and
4% from the 1994 second quarter due to spending to grow the U.S.
credit card and emerging economies businesses.
Total consumer credit costs (adjusted principally for the
effect of credit card securitization) declined by $121 million
from the 1993 third quarter, due primarily to further improvement
in the U.S. credit card portfolio. Consumer cash-basis loans
fell to $2.7 billion from $2.8 billion at the end of the 1994
second quarter and $3.0 billion at the end of the 1993 third
quarter. OREO declined in the quarter by $407 million to $787
million, primarily reflecting a portfolio sale at approximately
book value.
Global Finance
The Global Finance businesses' net income improved to $433
million in the third quarter, compared with $383 million in the
same 1993 quarter and $284 million in the 1994 second quarter.
The businesses in North America, Europe and Japan earned
$181 million in the quarter, compared with $220 million in the
same 1993 quarter and $103 million in the 1994 second quarter.
Important factors in the results were the return to more normal
levels of trading revenues and improvements in credit-related
items.
The businesses in the emerging economies reported net income
of $252 million in the third quarter, up from $163 million in the
same 1993 quarter and $181 million in the 1994 second quarter.
The earnings improvements reflected higher net interest revenues
in Latin America from a favorable rate environment during the
quarter, with broad-based increases in fee revenues also
contributing to the improvement over the 1993 third quarter.
Global Finance adjusted revenues were $1.5 billion in the
third quarter, compared with $1.5 billion also in the same 1993
quarter and $1.2 billion in the 1994 second quarter. Excluding
trading revenues, which declined in the quarter from the
unusually high levels of 1993, revenues were up 16% from the same
1993 quarter, led by increases in the emerging economies.
Adjusted operating expenses of $905 million in the third
quarter, compared with $816 million in the same 1993 quarter and
$823 million in the 1994 second quarter. The increases reflected
continued business expansion in the emerging economies, selective
investment spending in North America, Europe and Japan and,
compared with the 1994 second quarter, higher compensation
related to trading activities.
Credit recoveries and gains from the sale of OREO properties
contributed to a positive net credit amount of $60 million in the
third quarter, compared with an $88 million charge in the same
1993 period.
Cash-basis loans of $534 million at September 30, 1994,
compared with $581 million at the end of the 1994 second quarter
and $1.1 billion a year earlier.
OTHER AREAS
North America Commercial Real Estate
North America Commercial Real Estate reported continued
progress in dealing with its portfolio. Cash-basis loans of $1.3
billion were down from $1.5 billion at the end of the 1994 second
quarter and from $2.1 billion at the end of the 1993 third
quarter. OREO totaled $1.8 billion at the end of the 1994 third
quarter, down from $1.9 billion at the end of the 1994 second
quarter and $2.6 billion at September 30, 1993. Total exposure
was reduced by approximately $500 million during the quarter, to
$11.2 billion, down $3.5 billion from the 1993 third quarter.
The decreases resulted from various restructurings, sales,
write-offs, writedowns and paydowns.
North America Commercial Real Estate reported a net loss of
$86 million in the third quarter and $232 million in the nine
months, a reduction from the net losses of $132 million and $519
million in the comparable 1993 periods. The decrease in losses
reflected lower credit-related costs.
Cross-Border Refinancing Portfolio
The cross-border refinancing portfolio reported net income
of $45 million in the third quarter and $147 million in the nine
months, compared with $26 million and $77 million in the
comparable 1993 periods, primarily reflecting higher revenues.
Additionally, the 1994 nine month results benefited from a $44
million release of reserves in the first half of the year.
Cash-basis loans totaled $140 million at September 30, 1994,
compared with $165 million at the end of the second quarter and
$1.1 billion at September 30, 1993. The reduction in cash-basis
loans from a year ago reflected primarily the effects of the
Brazil refinancing agreement completed in the second quarter of
1994.
Following are tables of financial highlights, an analysis of
operating margin and pretax earnings, business results and credit
indicators, along with financial statements. Further details
concerning the financial results will be available in Citicorp's
Form 10-Q to be published in November.
Page 6 - Citicorp 1994 Third Quarter
KEY RATIOS & OTHER CONSOLIDATED FINANCIAL DATA
<TABLE>
<CAPTION>
Third Quarter Year-to-Date
1994 1993 1994 1993
------ ------ ------ ------
<S> <C> <C> <C> <C>
NET INCOME ($M):
Before Cumulative Effect
of Accounting Changes..... $ 894 $ 528 $2,380 $1,344
After Cumulative Effect
of Accounting Changes(A).. $ 894 $ 528 $2,324 $1,644
NET INCOME PER COMMON SHARE:
On Common & Common
Equivalent Shares
Before Cumulative Effect
of Accounting Changes..... $ 1.87 $ 1.06 $ 4.95 $ 2.66
After Cumulative Effect
of Accounting Changes(A).. $ 1.87 $ 1.06 $ 4.82 $ 3.34
Assuming Full Dilution
Before Cumulative Effect
of Accounting Changes..... $ 1.67 $ 0.97 $ 4.44 $ 2.47
After Cumulative Effect
of Accounting Changes(A).. $ 1.67 $ 0.97 $ 4.33 $ 3.05
COMMON STOCKHOLDERS' EQUITY
PER SHARE(B)............... $32.43 $25.05
CLOSING STOCK PRICE
AT QUARTER END............. $42.50 $38.13
PROFITABILITY RATIOS (Annualized):
Return on Total Assets(C):
Before Accounting Changes.. 1.34% 0.91% 1.23% 0.79%
After Accounting Changes(A) 1.34% 0.91% 1.21% 0.92%
Return on Common Stockholders'
Equity(B):
Before Accounting Changes.. 26.5% 19.2% 25.2% 16.9%
After Accounting Changes(A) 26.5% 19.2% 24.7% 20.3%
Return on Total Stockholders'
Equity(B):
Before Accounting Changes.. 22.0% 16.3% 20.9% 14.8%
After Accounting Changes(A) 22.0% 16.3% 20.6% 17.2%
CAPITAL:
Tier 1 ($B)................ $ 16.0 $ 12.8
Tier 1 & 2 ($B)(D)......... $ 25.4 $ 22.3
Tier 1 Ratio(D)............ 7.3% 6.2%
Tier 1 & 2 Ratio(D)........ 11.7% 10.7%
Common Equity as a
% of Total Assets(B)(C).. 5.0% 4.3%
Total Equity as a
% of Total Assets(B)(C).. 6.7% 6.0%
DIVIDENDS DECLARED ($M):
Common................... $ 59 $ - $ 117 $ -
Preferred................ $ 89 $ 78 $ 267 $ 226
(A) The 1994 results include 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 reflect 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 reflect the effect of adopting FASB
Interpretation No. 39, "Offsetting of Amounts Related to
Certain Contracts", as of January 1, 1994.
(D) Estimated.
</TABLE>
Page 7 - Citicorp 1994 Third Quarter
OPERATING MARGIN
($ Millions)
<TABLE>
<CAPTION>
Third Quarter Year-to-Date
1994 1993 1994 1993
------ ------ ------- -------
<S> <C> <C> <C> <C>
Total Revenue .......... $4,325 $4,070 $12,236 $11,923
Effect of Credit Card
Securitization......... 213 303 745 990
Net Cost to Carry(A).... 30 54 90 209
Capital Building
Transactions........... - (9) (140) (59)
----- ----- ------ ------
Adjusted Revenue........ $4,568 $4,418 $12,931 $13,063
----- ----- ------ ------
Total Operating
Expense................ $2,630 $2,574 $ 7,533 $ 7,594
Net OREO Costs (B)...... (5) (67) (14) (248)
----- ----- ------ ------
Adjusted Operating
Expense................ $2,625 $2,507 $ 7,519 $ 7,346
----- ----- ------ ------
Operating Margin........ $1,943 $1,911 $ 5,412 $ 5,717
Consumer Credit
Costs (C).............. 544 665 1,743 2,089
Commercial Credit
Costs (D).............. 40 233 173 910
----- ----- ------ ------
Operating Margin
Less Credit Costs...... $1,359 $1,013 $ 3,496 $ 2,718
Add'l Provision:
- -Consumer(E)............ 50 63 150 213
- -Commercial(E).......... 50 88 150 264
- -Refinancing Portfolio(F) - - (44) -
Capital Building
Transactions........... - 9 140 59
----- ----- ------ ------
Income Before Taxes and
Cumulative Effect of
Accounting Changes.... $1,259 $ 871 $ 3,380 $ 2,300
===== ===== ====== ======
(A) Principally the net cost to carry commercial cash-basis
loans and Other Real Estate Owned (OREO).
(B) Principally net write-downs, net gains (losses) on sales
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 costs.
(E) Represents provision for credit losses above net write-offs.
(F) Effective June 30, 1994, the refinancing portfolio allowance
is included in the commercial allowance.
</TABLE>
Page 8 - Citicorp 1994 Third Quarter
BUSINESS FOCUS
<TABLE>
Net Income (Loss)
($ Millions)
<CAPTION>
Third Quarter Year-to-Date
1994 1993(A) 1994 1993(A)
------ ------ ------ ------
<S> <C> <C> <C> <C>
Global Consumer:
North America, Europe
and Japan............. $ 308 $ 216 $ 815 $ 534
Emerging Economies...... 169 133 500 402
----- ----- ----- -----
Total Global Consumer.... $ 477 $ 349 $1,315 $ 936
----- ----- ----- -----
Global Finance:
North America, Europe
and Japan............. $ 181 $ 220 $ 376 $ 682
Emerging Economies...... 252 163 604 517
----- ----- ----- -----
Total Global Finance..... $ 433 $ 383 $ 980 $1,199
----- ----- ----- -----
North America Commercial
Real Estate............ $ (86) $ (132) $ (232) $ (519)
Cross-Border Refinancing
Portfolio.............. 45 26 147 77
Corporate Items(B)....... 25 (98) 170 (349)
----- ----- ----- -----
$ 894 $ 528 $2,380 $1,344
Cumulative Effect of
Accounting Changes(C).. - - (56) 300
----- ----- ----- -----
Citicorp................. $ 894 $ 528 $2,324 $1,644
===== ===== ===== =====
(A) Reclassified to conform to current quarter's presentation.
(B) Corporate Items includes the effects of capital building
transactions and the offset created by attributing income
taxes to business activities on a local tax basis.
(C) The 1994 results include the cumulative effect of adopting
SFAS No. 112, "Employers' Accounting for Postemployment
Benefits", as of January 1, 1994. The 1993 results include
the cumulative effect of adopting SFAS No. 109 "Accounting
for Income Taxes", as of January 1, 1993.
</TABLE>
Page 9 - Citicorp 1994 Third Quarter
GLOBAL CONSUMER
<TABLE>
<CAPTION>
($ Millions)
Third Quarter % Year-to-Date %
1994 1993(A) Chg 1994 1993(A)Chg
------ ------ --- ------ ------ ---
<S> <C> <C> <C> <C> <C> <C>
Total Revenue........... $2,645 $2,431 9 $7,619 $7,009 9
----- ----- ----- -----
Total Operating Expense. $1,571 $1,510 4 $4,576 $4,424 3
----- ----- ----- -----
Provision For
Credit Losses ......... $ 365 $ 419 (13) $1,104 $1,272 (13)
----- ----- ----- -----
Income Before Taxes..... $ 709 $ 502 41 $1,939 $1,313 48
Income Taxes............ 232 153 52 624 377 66
----- ----- ----- -----
Net Income.............. $ 477 $ 349 37 $1,315 $ 936 40
===== ===== ===== =====
OTHER DATA:
Average Assets ($B)..... 107 99 8 104 99 5
Return on Assets........ 1.77% 1.40% - 1.69% 1.26% -
Adjusted for Credit-
Related Items:
Total Revenue(B)
North America,
Europe and Japan.... $2,202 $2,200 - $6,486 $6,439 1
Emerging Economies... 659 537 23 1,884 1,571 20
----- ----- ----- -----
Total Global Consumer.. $2,861 $2,737 5 $8,370 $8,010 4
----- ----- ----- -----
Other Operating
Expense(C)
North America,
Europe and Japan.... $1,187 $1,191 - $3,491 $3,497 -
Emerging Economies... 371 316 17 1,047 898 17
----- ----- ----- -----
Total Global Consumer.. $1,558 $1,507 3 $4,538 $4,395 3
----- ----- ----- -----
Credit Costs (D)
North America,
Europe and Japan.... $ 499 $ 628 (21) $1,620 $1,976 (18)
Emerging Economies... 45 37 22 123 113 9
----- ----- ----- -----
Total Global Consumer.. $ 544 $ 665 (18) $1,743 $2,089 (17)
----- ----- ----- -----
(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 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 $314 million and $1,047 million for 1994 third quarter
and year-to-date, respectively, and $416 million and $1,334
million for the comparable periods of 1993.
</TABLE>
Page 10 - Citicorp 1994 Third Quarter
GLOBAL FINANCE
<TABLE>
<CAPTION>
($ Millions)
Third Quarter % Year-to-Date %
1994 1993(A) Chg 1994 1993(A)Chg
------ ------ --- ------ ------ ---
<S> <C> <C> <C> <C> <C> <C>
Total Revenue........... $1,472 $1,467 - $3,914 $4,455 (12)
----- ----- ----- -----
Total Operating Expense. $ 883 $ 825 7 $2,462 $2,455 -
----- ----- ----- -----
Provision For
Credit Losses ......... $ (28) $ 91 N/M $ (41) $ 289 N/M
----- ----- ----- -----
Income Before Taxes..... $ 617 $ 551 12 $1,493 $1,711 (13)
Income Taxes............ 184 168 10 513 512 -
----- ----- ----- -----
Net Income.............. $ 433 $ 383 13 $ 980 $1,199 (18)
===== ===== ===== =====
OTHER DATA:
Average Assets ($B)(B).. 144 111 30 139 107 30
Return on Assets........ 1.19% 1.37% - 0.94% 1.50% -
Adjusted for Credit-
Related Items:
Total Revenue(C)
North America,
Europe and Japan.... $ 819 $ 974 (16) $2,213 $2,926 (24)
Emerging Economies... 656 503 30 1,716 1,576 9
----- ----- ----- -----
Total Global Finance... $1,475 $1,477 - $3,929 $4,502 (13)
----- ----- ----- -----
Other Operating
Expense(D)
North America,
Europe and Japan.... $ 605 $ 561 8 $1,686 $1,619 4
Emerging Economies... 300 255 18 839 821 2
----- ----- ----- -----
Total Global Finance... $ 905 $ 816 11 $2,525 $2,440 3
----- ----- ----- -----
Credit Costs (E)
North America,
Europe and Japan.... $ (71) $ 62 N/M $ (132) $ 154 N/M
Emerging Economies... 11 26 (58) 6 49 (88)
----- ----- ----- -----
Total Global Finance... $ (60) $ 88 N/M $ (126) $ 203 N/M
----- ----- ----- -----
(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, net gains (losses) on sales and
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, net
gains (losses) on sales and direct revenues and expenses
related to OREO.
N/M Not meaningful as percentage exceeds 100%.
</TABLE>
Page 11 - Citicorp 1994 Third Quarter
NORTH AMERICA COMMERCIAL REAL ESTATE
<TABLE>
<CAPTION>
($ Millions)
Third Quarter % Year-to-Date %
1994 1993(A) Chg 1994 1993(A)Chg
------ ------ --- ----- ------ ---
<S> <C> <C> <C> <C> <C> <C>
Total Revenue........... $ 10 $ 8 25 $ 56 $ (29) N/M
---- ----- ----- -----
Total Operating Expense. $ 49 $ 95 (48) $ 144 $ 324 (56)
---- ----- ----- -----
Provision For
Credit Losses.......... $ 99 $ 115 (14) $ 306 $ 469 (35)
---- ----- ----- -----
(Loss) Before Taxes..... $(138) $ (202) 32 $ (394) $ (822) 52
Income Taxes............ (52) (70) 26 (162) (303) 47
---- ----- ----- -----
Net (Loss).............. $ (86) $ (132) 35 $ (232) $ (519) 55
==== ===== ===== =====
OTHER DATA:
Average Assets ($B)..... 8 11 (27) 9 12 (25)
Adjusted for Credit-
Related Items:
Total Revenue (B)..... 34 49 (31) 125 122 2
Total Operating
Expense (C).......... 35 40 (13) 105 120 (13)
Credit Costs (D)...... 100 145 (31) 301 708 (57)
(A) Reclassified to conform to current quarter's presentation.
(B) After adding back the net cost to carry cash-basis loans
and OREO.
(C) Excludes net write-downs, net gains (losses) on sales and
direct revenues and expenses related to OREO.
(D) Includes net write-offs, the net cost to carry cash-basis
loans and OREO, as well as net write-downs, net gains
(losses) on sales and direct revenues and expenses related
to OREO.
N/M Not meaningful as percentage exceeds 100%.
</TABLE>
Page 12 - Citicorp 1994 Third Quarter
CROSS-BORDER REFINANCING PORTFOLIO
<TABLE>
<CAPTION>
($ Millions)
Third Quarter % Year-to-Date %
1994 1993(A) Chg 1994 1993(A)Chg
------ ------ --- ------ ------ ---
<S> <C> <C> <C> <C> <C> <C>
Total Revenue .......... $ 55 $ 33 67 $ 141 $ 94 50
----- ----- ----- -----
Total Operating Expense. $ 7 $ 7 - $ 19 $ 20 (5)
----- ----- ----- -----
Provision For
Credit Losses.......... $ - $ - - $ (46) $ (1) N/M
----- ----- ----- -----
Income Before Taxes $ 48 $ 26 85 $ 168 $ 75 N/M
Income Taxes............ 3 - - 21 (2) N/M
----- ----- ----- -----
Net Income.............. $ 45 $ 26 73 $ 147 $ 77 91
===== ===== ===== =====
OTHER DATA:
Average Assets ($B)..... 3 3 - 3 3 -
CORPORATE ITEMS
</TABLE>
<TABLE>
<CAPTION>
($ Millions)
Third Quarter % Year-to-Date %
1994 1993(A) Chg 1994 1993(A)Chg
------ ------ --- ----- ------ ---
<S> <C> <C> <C> <C> <C> <C>
Total Revenue........... $ 143 $ 131 9 $ 506 $ 394 28
----- ----- ----- -----
Total Operating Expense. $ 120 $ 137 (12) $ 332 $ 371 (11)
----- ----- ----- -----
Income (Loss) Before
Taxes.................. $ 23 $ (6) N/M $ 174 $ 23 N/M
Income Taxes............ (2) 92 N/M 4 372 (99)
----- ----- ----- -----
Net Income (Loss) (B)... $ 25 $ (98) N/M $ 170 $ (349) N/M
===== ===== ===== =====
(A) Reclassified to conform to current quarter's presentation.
(B) Corporate Items includes net after-tax gains from capital
building transactions of $88 million year-to-date as
compared with $33 million year-to-date in 1993.
Additionally, Corporate Items includes the offset
created by attributing income taxes to business activities
on a local tax basis. Year-to-date 1994 amounts also
reflect a $150 million tax benefit related to a reduction
of the deferred tax asset valuation allowance following a
reassessment of the expected level and mix of future
earnings.
N/M Not meaningful as percentage exceeds 100%.
</TABLE>
Page 13 - Citicorp 1994 Third Quarter
ASSET QUALITY
COMMERCIAL CASH-BASIS LOANS AND OREO
<TABLE>
<CAPTION>
($ Millions)
3Q 2Q 1Q 4Q 3Q 2Q 1Q
1994 1994 1994 1993 1993 1993 1993
----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
North America
Comm'l Real
Estate........ $1,321 $1,495 $1,654 $1,719 $2,138 $2,474 $2,593
Global Finance. 534 581 699 755 1,063 1,346 1,267
----- ----- ----- ----- ----- ----- -----
Comm'l Cash-Basis
Loans (excl.
Refinancing).. $1,855 $2,076 $2,353 $2,474 $3,201 $3,820 $3,860
Cross-Border
Refinancing(A) 140 165 991 1,041 1,068 1,082 1,242
----- ----- ----- ----- ----- ----- -----
Total Comm'l Cash-
Basis Loans... $1,995 $2,241 $3,344 $3,515 $4,269 $4,902 $5,102
Comm'l OREO.... 2,301 2,415 2,598 2,796 3,122 3,479 3,721
----- ----- ----- ----- ----- ----- -----
Total Comm'l
Cash-Basis
Loans & OREO.. $4,296 $4,656 $5,942 $6,311 $7,391 $8,381 $8,823
===== ===== ===== ===== ===== ===== =====
ALLOWANCE FOR CREDIT LOSSES
3Q 2Q 1Q 4Q 3Q 2Q 1Q
1994 1994 1994 1993 1993 1993 1993
----- ----- ----- ----- ----- ----- -----
Global Consumer $1,790 $1,711 $1,639 $1,596 $1,550 $1,491 $1,412
Commercial(B).. 3,270 3,201 2,595 2,545 2,482 2,394 2,296
Cross-Border
Refinancing... - - 238 238 228 205 325
----- ----- ----- ----- ----- ----- -----
Total.......... $5,060 $4,912 $4,472 $4,379 $4,260 $4,090 $4,033
===== ===== ===== ===== ===== ===== =====
Reserve for
Global Consumer
Sold Portfolios $ 467 $ 503 $ 538 $ 527 $ 559 $ 557 $ 557
ALLOWANCE AS A PERCENTAGE
OF TOTAL LOANS
Global Consumer 1.97% 2.00% 1.98% 1.89% 1.89% 1.83% 1.75%
Commercial(B).. 5.90% 5.76% 4.88% 4.88% 4.49% 4.35% 4.25%
Total.......... 3.46% 3.48% 3.26% 3.15% 3.05% 2.94% 2.92%
ADDITIONAL DATA
Comm'l Allowance
as % of Comm'l
Cash-Basis
Loans (A)(B).. 163.9% 142.8% 110.3% 102.9% 77.5% 62.7% 59.5%
Comm'l Renegotiated
Loans......... $ 524 $ 417 $ 384 $ 708 $ 377 $ 147 $ 136
Consumer OREO.. $ 787 $1,194 $1,247 $1,212 $1,283 $1,312 $1,314
Consumer Cash-
Basis Loans... $2,713 $2,813 $2,904 $2,863 $3,004 $3,102 $3,113
(A) Reflects the transfer of $0.8 billion of Brazil outstandings
to Available for Sale Securities in the second quarter of
1994, pursuant to the refinancing agreement completed in
that quarter.
(B) Effective second quarter 1994, includes amounts related to
the Cross-Border Refinancing portfolio.
</TABLE>
Page 14 - Citicorp 1994 Third Quarter
DETAILS OF CREDIT LOSS EXPERIENCE
<TABLE>
<CAPTION>
($ Millions)
3Q 2Q 1Q 4Q 3Q 2Q 1Q
1994 1994 1994 1993 1993 1993 1993
----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
NET WRITE-OFFS
(RECOVERIES):
Global
Consumer ......$ 315 $ 311 $ 328 $ 351 $ 356 $ 367 $ 336
North America
Commercial
Real Estate... 62 63 68 78 49 136 168
Global Finance.. (41) 9 (46) 16 69 36 36
----- ----- ----- ----- ----- ----- -----
Total Commercial
(excluding
Refinancing)..$ 21 $ 72 $ 22 $ 94 $ 118 $ 172 $ 204
----- ----- ----- ----- ----- ----- -----
Cross-Border
Refinancing(A). (19) (329) (35) (10) (23) 120 (26)
----- ----- ----- ----- ----- ----- -----
Total...........$ 317 $ 54 $ 315 $ 435 $ 451 $ 659 $ 514
===== ===== ===== ===== ===== ===== =====
3Q 2Q 1Q 4Q 3Q 2Q 1Q
1994 1994 1994 1993 1993 1993 1993
----- ----- ----- ----- ----- ----- -----
PROVISION FOR
CREDIT LOSSES:
Global Consumer.$ 365 $ 361 $ 378 $ 414 $ 419 $ 442 $ 411
North America
Commercial
Real Estate... 99 101 106 141 115 186 168
Global Finance.. (28) 21 (34) 16 91 87 111
----- ----- ----- ----- ----- ----- -----
Total Commercial
(excluding
Refinancing)..$ 71 $ 122 $ 72 $ 157 $ 206 $ 273 $ 279
----- ----- ----- ----- ----- ----- -----
Cross-Border
Refinancing.... - (11) (35) - - - (1)
----- ----- ----- ----- ----- ----- -----
Total...........$ 436 $ 472 $ 415 $ 571 $ 625 $ 715 $ 689
===== ===== ===== ===== ===== ===== =====
COMMERCIAL NET OREO
WRITE-DOWNS(RECOVERIES):
North America
Commercial
Real Estate...$ 24 $ 12 $ 36 $ 27 $ 73 $ 65 $ 92
Global Finance.. (9) (25) (6) (30) 13 (1) 4
----- ----- ----- ----- ----- ----- -----
Total...........$ 15 $ (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 refinancing
agreement completed in that quarter.
</TABLE>
Page 15 - Citicorp 1994 Third Quarter
STATEMENT OF OPERATIONS CITICORP and Subsidiaries
(In Millions of Dollars,
Except Per Share Amounts)
<TABLE>
<CAPTION>
Third Quarter % Year-to-Date %
1994 1993 Chg 1994 1993 Chg
------ ------- --- ------- ------- ---
<S> <C> <C> <C> <C> <C> <C>
Interest Revenue....... $5,057 $6,008 (16) $18,411 $17,557 5
Interest Expense....... 2,711 4,025 (33) 11,822 11,874 -
----- ----- ------ ------
Net Interest Revenue... $2,346 $1,983 18 $ 6,589 $ 5,683 16
----- ----- ------ ------
Fees & Commissions.... $1,280 $1,234 4 $ 3,778 $ 3,700 2
Trading Account....... 105 233 (55) 129 670 (81)
Foreign Exchange...... 182 245 (26) 388 837 (54)
Securities Trans...... 5 43 (88) 178 91 96
Other Revenue......... 407 332 23 1,174 942 25
----- ----- ------ ------
Total Fees, Commissions
and Other Revenue..... $1,979 $2,087 (5) $ 5,647 $ 6,240 (10)
----- ----- ------ ------
TOTAL REVENUE.......... $4,325 $4,070 6 $12,236 $11,923 3
----- ----- ------ ------
PROVISION FOR
CREDIT LOSSES......... $ 436 $ 625 (30) $ 1,323 $ 2,029 (35)
----- ----- ------ ------
Operating Expense:
Salaries............. $1,050 $ 979 7 $ 2,978 $ 2,839 5
Staff Benefits....... 284 261 9 852 764 12
Net Premises &
Equipment Expense.... 396 413 (4) 1,156 1,200 (4)
Other Expense........ 900 921 (2) 2,547 2,791 (9)
----- ----- ------ ------
TOTAL OPERATING EXPENSE $2,630 $2,574 2 $ 7,533 $ 7,594 (1)
----- ----- ------ ------
INCOME BEFORE TAXES
AND CUMULATIVE EFFECT
OF ACCOUNTING CHANGES. $1,259 $ 871 45 $ 3,380 $ 2,300 47
Income Taxes(A)....... 365 343 6 1,000 956 5
----- ----- ------ ------
INCOME BEF. CUMULATIVE
EFFECT OF ACCTG CHGS.. $ 894 $ 528 69 $ 2,380 $ 1,344 77
Cumulative Effect of
Accounting Changes(B). - - - (56) 300 N/M
----- ----- ------ ------
NET INCOME............. $ 894 $ 528 69 $ 2,324 $ 1,644 41
===== ===== ====== ======
INCOME APPLICABLE
TO COMMON STOCK....... $ 804 $ 446 80 $ 2,060 $ 1,412 46
===== ===== ====== ======
EARNINGS PER SHARE :
On Common & Common Equiv. Shs
Income Bef. Cumulative
Effect of Acctg Chgs. $ 1.87 $ 1.06 $ 4.95 $ 2.66
Income After Cumulative
Effect of Acctg Chgs. $ 1.87 $ 1.06 $ 4.82 $ 3.34
Assuming Full Dilution
Income Bef. Cumulative
Effect of Acctg Chgs. $ 1.67 $ 0.97 $ 4.44 $ 2.47
Income After Cumulative
Effect of Acctg Chgs. $ 1.67 $ 0.97 $ 4.33 $ 3.05
(A) The 1994 year-to-date amount includes 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.
(B) The 1994 results include 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.
N/M Not meaningful as percentage exceeds 100%.
</TABLE>
Page 16 - Citicorp 1994 Third Quarter
CONSOLIDATED BALANCE SHEET CITICORP and Subsidiaries
(In Millions of Dollars)
<TABLE>
<CAPTION>
Sept. 30 Dec. 31 %
1994 1993(A) Chg
-------- -------- ---
<S> <C> <C> <C>
ASSETS
Cash and Due from Banks......... $ 5,267 $ 4,836 9
Deposits at Interest with Banks. 7,387 6,749 9
Securities(B):
Held to Maturity............... 5,192 5,637 (8)
Available for Sale............. 14,927 8,705 71
Venture Capital................ 1,746 1,489 17
Trading Account Assets(C)....... 44,360 23,783 87
Federal Funds Sold &
Securities Purchased
Under Resale Agreements........ 9,282 7,339 26
Loans, Net
Consumer....................... $ 90,880 $ 84,354 8
Commercial(B).................. 55,443 54,613 2
------- -------
Total Loans................. $146,323 $138,967 5
Allowance for Credit Losses..... (5,060) (4,379) (16)
------- -------
Total Loans, Net............ $141,263 $134,588 5
Customers' Acceptance Liability $ 1,404 $ 1,512 (7)
Premises & Equipment, Net....... 3,996 3,842 4
Interest & Fees Receivable...... 2,605 2,552 2
Other Assets.................... 15,720 15,542 1
------- -------
Total........................... $253,149 $216,574 17
======= =======
LIABILITIES
Non-Int. Deposits (in the U.S.). $ 12,280 $ 13,442 (9)
Int. Deposits (in the U.S.)..... 35,910 38,347 (6)
Non-Int. Deposits (Outside the
U.S.).......................... 7,699 6,644 16
Int. Deposits(Outside the U.S.). 98,402 86,656 14
------- -------
Total Deposits.............. $154,291 $145,089 6
Trading Account Liabilities(C).. 26,269 5,478 N/M
Purchased Funds &
Other Borrowings............... 22,535 16,777 34
Acceptances Outstanding......... 1,425 1,531 (7)
Accrued Taxes & Other Expenses.. 5,653 6,452 (12)
Other Liabilities............... 9,545 9,134 4
Long-Term Debt.................. 15,038 16,010 (6)
Subordinated Capital Notes...... 1,438 2,150 (33)
STOCKHOLDERS' EQUITY
Preferred Stock
(Without Par Value)............ $ 4,187 $ 3,887 8
Common Stock (Par value $1.00).. 419 412 2
Surplus......................... 4,136 3,898 6
Retained Earnings .............. 8,669 6,729 29
Net Unrealized Gains-Securities
Available for Sale(B).......... 411 - N/M
Foreign Currency Translation.... (468) (580) 19
Common Stock in Treasury,
at Cost........................ (399) (393) (2)
------- -------
Total Stockholders' Equity.. $ 16,955 $ 13,953 22
------- -------
Total........................... $253,149 $216,574 17
======= =======
(A) Reclassified to conform to current quarter's presentation.
(B) Refer to page 17 for Balance Sheet notes.
(C) Refer to page 17 for Balance Sheet notes.
N/M Not meaningful as percentage exceeds 100%.
Page 17 - Citicorp 1994 Third Quarter
CONSOLIDATED BALANCE SHEET NOTES (continued)
(B) Balances at September 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
September 30, 1994 include approximately $17.5 billion
relating to the adoption in 1994 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 $3.1 billion,
respectively, to provide for consistent presentation of,
amounts previously recorded in Other Assets and Other
Liabilities representing revaluation gains and losses and
other balances related to these contracts.
</TABLE>
Page 18 - Citicorp 1994 Third Quarter
ADDITIONAL FINANCIAL DATA
<TABLE>
<CAPTION>
($ Millions)
3Q 2Q 1Q 4Q 3Q
1994 1994 1994 1993 1993
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
NET INTEREST REVENUE(A)
Net Interest Revenue.. $ 2,352 $ 2,170 $ 2,087 $ 2,012 $ 1,986
Net Interest Margin... 4.37% 4.15% 4.01% 3.94% 3.97%
ADJUSTED TO EXCLUDE
THE EFFECT OF CREDIT
CARD SECURITIZATION:
Net Interest Revenue.. $ 2,862 $ 2,710 $ 2,616 $ 2,553 $ 2,567
Net Interest Margin... 4.80% 4.64% 4.52% 4.48% 4.57%
CONSOLIDATED AVERAGE
BALANCES
3Q 2Q 1Q 4Q 3Q
1994 1994 1994 1993 1993
------ ------ ------ ------ ------
Loans ($B):
Consumer............. $ 87 $ 84 $ 84 $ 82 $ 81
Commercial........... 56 55 54 57 57
------ ------ ------ ------ ------
Total Average Loans... $ 143 $ 139 $ 138 $ 139 $ 138
====== ====== ====== ====== ======
Total Average
Assets($B)(B)........ $ 265 $ 258 $ 253 $ 233 $ 229
Avg. Interest Earning
Assets($B)........... $ 214 $ 210 $ 211 $ 203 $ 199
Common Stockholders'
Equity ($M)(C)....... $12,023 $11,049 $10,562 $ 9,728 $ 9,215
Preferred Equity ($M). 4,116 3,975 3,887 3,887 3,595
------ ------ ------ ------ ------
Total Average
Stockholders'
Equity ($M)(C)....... $16,139 $15,024 $14,449 $13,615 $12,810
====== ====== ====== ====== ======
(A) Taxable Equivalent Basis.
(B) The 1994 periods include the effect of adopting FASB
Interpretation No. 39, "Offsetting of Amounts Related
to Certain Contracts", which is reflected in non-interest
earning assets.
(C) The 1994 periods include the effect of adopting SFAS
No. 115, "Accounting for Certain Investments in Debt
and Equity Securities", as of January 1, 1994.
</TABLE>
Page 19 - Citicorp 1994 Third Quarter
EARNINGS PER SHARE DATA(A)
(Before Cumulative Effect
of Accounting Changes)
<TABLE>
<CAPTION>
Third Quarter Year-to-Date
1994 1993 1994 1993
------- ------- ------- -------
<S> <C> <C> <C> <C>
On Common and Common
Equivalent Shares:
Earnings($ Millions).. $ 827 $ 469 $ 2,186 $ 1,182
Shares (in thousands). 442,361 442,432 441,859 444,970
Earnings Per Share.... $ 1.87 $ 1.06 $ 4.95 $ 2.66
Assuming Full Dilution:
Earnings($ Millions).. $ 861 $ 503 $ 2,288 $ 1,284
Shares (in thousands). 515,407 517,040 515,141 520,113
Earnings Per Share.... $ 1.67 $ 0.97 $ 4.44 $ 2.47
COMMON SHARES OUTSTANDING
(In Thousands)
End-Of-Period......... 393,654 379,124
(A) For earnings per share on common and common equivalent
shares, dividends on Conversion Preferred Stock, Series 15
($23 million in the third quarter of 1994 and 1993 and
$70 million in both year-to-date periods) are added back to
income applicable to common stock, and the number of shares
issuable on conversion (39 million shares in the third
quarter and 41 million shares year-to-date of 1994,
53 million in the third quarter of 1993 and 60 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 third quarter of 1994 and 1993 and
$102 million in both year-to-date periods) are also added
back to income applicable to common stock, and the shares
issuable on conversion (73 million shares) are added to
shares outstanding. The number of common equivalent and book
value shares are calculated on a fully diluted basis as well.
</TABLE>
Page 20 - Citicorp 1994 Third Quarter
OTHER REVENUE DATA
<TABLE>
<CAPTION>
Third Quarter Year-to-Date
1994 1993(A) 1994 1993(A)
------ ------ ------ ------
<S> <C> <C> <C> <C>
OTHER REVENUE
($ Millions)
Affiliate Earnings...... $ 45 $ 33 $ 162 $ 112
Securitized Credit
Card Receivables....... 251 297 695 798
Net (Losses) from
Mortgage Pass-Through
Securitization (13) (20) (60) (103)
Activity...............
Venture Capital Gains... 48 9 152 84
Net Asset Gains......... 32 8 113 62
Foreign Currency
Translation Gains/ (9) (3) (2) (35)
(Losses)...............
Other Items............. 53 8 114 24
------ ------ ------- ------
Total................. $ 407 $ 332 $ 1,174 $ 942
====== ====== ======= ======
(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: October 19, 1994
<TABLE>
<CAPTION>
CITICORP AND SUBSIDIARIES
CALCULATION OF RATIO OF INCOME TO FIXED CHARGES
(In Millions)
EXCLUDING INTEREST ON DEPOSITS NINE MONTHS
ENDED
SEPTEMBER 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 4,908 4,587
INTEREST FACTOR IN RENT EXPENSE 147 162 171 173 161 107 112
------- ------- ------- ------- ------- ------- ------
TOTAL FIXED CHARGES 6,471 5,988 6,144 9,587 11,643 5,015 4,699
INCOME:
ADJUSTED NET INCOME(LOSS) 1,919(B) 722 (914)(C) 318(D) 498 2,380(E) 1,344(B)
INCOME TAXES 941 696 677 508 1,035 1,000 956
FIXED CHARGES 6,471 5,988 6,144 9,587 11,643 5,015 4,699
------- ------- ------- ------- ------- ------- -------
TOTAL INCOME 9,331 7,406 5,907 10,413 13,176 8,395 6,999
======= ======= ======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS 1.44 1.24 0.96(F) 1.09 1.13 1.67 1.49
======= ======= ======= ======= ======= ======= =======
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE 16,121 16,327 17,089 23,798 24,218 11,822 11,874
INTEREST FACTOR IN RENT EXPENSE 147 162 171 173 161 107 112
------- ------- ------- ------- ------- ------- -------
TOTAL FIXED CHARGES 16,268 16,489 17,260 23,971 24,379 11,929 11,986
INCOME:
NET INCOME(LOSS) 1,919(B) 722 (914)(C) 318(D) 498 2,380(E) 1,344(B)
INCOME TAXES 941 696 677 508 1,035 1,000 956
FIXED CHARGES 16,268 16,489 17,260 23,971 24,379 11,929 11,986
------- ------- ------- ------- ------- ------- -------
TOTAL INCOME 19,128 17,907 17,023 24,797 25,912 15,309 14,286
======= ======= ======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS 1.18 1.09 0.99(F) 1.03 1.06 1.28 1.19
======= ======= ======= ======= ======= ======= ======
(A) PRIOR YEARS HAVE BEEN RECLASSIFIED TO CONFORM TO CURRENT YEAR'S PRESENTATION.
(B) NET INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 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 NINE MONTHS ENDED SEPTEMBER 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)
NINE MONTHS
EXCLUDING INTEREST ON DEPOSITS ENDED
SEPTEMBR 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 4,908 4,587
INTEREST FACTOR IN RENT EXPENSE 147 162 171 173 161 107 112
DIVIDENDS - PREFERRED STOCK 465 416 271(B) 361 385 405 387
------- ------- ------- ------- ------- ------- -------
TOTAL FIXED CHARGES 6,936 6,404 6,415 9,948 12,028 5,420 5,086
INCOME:
NET INCOME(LOSS) 1,919(C) 722 (914)(D) 318(E) 498 2,380(F) 1,344(C)
INCOME TAXES 941 696 677 508 1,035 1,000 956
FIXED CHARGES (EXCLUDING
PREFERRED STOCK DIVIDENDS) 6,471 5,988 6,144 9,587 11,643 5,015 4,699
------- ------- ------- ------- ------- ------- -------
TOTAL INCOME 9,331 7,406 5,907 10,413 13,176 8,395 6,999
======= ======= ======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS 1.35 1.16 0.92(G) 1.05 1.10 1.55 1.38
======= ======= ======= ======= ======= ======= =======
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE 16,121 16,327 17,089 23,798 24,218 11,822 11,874
INTEREST FACTOR IN RENT EXPENSE 147 162 171 173 161 107 112
DIVIDENDS - PREFERRED STOCK 465 416 271(B) 361 385 405 387
------- ------- ------- ------- ------- ------ ------
TOTAL FIXED CHARGES 16,733 16,905 17,531 24,332 24,764 12,334 12,373
INCOME:
NET INCOME(LOSS) 1,919(C) 722 (914)(D) 318(E) 498 2,380(F) 1,344(C)
INCOME TAXES 941 696 677 508 1,035 1,000 956
FIXED CHARGES (EXCLUDING
PREFERRED STOCK DIVIDENDS) 16,268 16,489 17,260 23,971 24,379 11,929 11,986
------- ------- ------- ------- ------- ------- ------
TOTAL INCOME 19,128 17,907 17,023 24,797 25,912 15,309 14,286
======= ======= ======= ======= ======= ======= ======
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS 1.14 1.06 0.97(G) 1.02 1.05 1.24 1.15
======= ======= ======= ======= ====== ======= ======
(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 NINE MONTHS ENDED SEPTEMBER 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 NINE MONTHS ENDED SEPTEMBER 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>
