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
17, 1995
CITICORP
(Exact name of registrant as specified in charter)
Delaware 1-5738 13-2614988
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) Number)
399 Park Avenue, New York, New York 10043
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (212)559-1000
Not Applicable
(Former name or former address, if changed since last
report)
<PAGE>
Item 5. Other Events
On January 17 , 1994 Citicorp provided results of business
operations and financial tables supplementing its January 12
release of 1994 and fourth quarter results.
As reported earlier, 1994 net income was $3.4 billion, or
$6.29 per common share fully diluted. In the fourth quarter, net
income was $1.0 billion, or $1.95 per share.
The 1994 results compared with 1993 net income of
$2.2 billion, or $4.11 per share. Net income in the 1994 third
quarter was $894 million, or $1.67 per share, and in the 1993
fourth quarter, $575 million, or $1.06 per share.
John S. Reed, Chairman, said: "The year's results -- an
all-time record -- reflect strong and encouraging worldwide
growth in the company s global consumer business, continued year-
by-year improvement in real estate, an outstanding year for our
venture capital business and solid 'non-trading' global finance
results. The company s tax rate is unusually low due to the use
of deferred tax benefits. We made great progress on our balance
sheet goals: asset quality continues to improve, with commercial
cash-basis assets down in the year by $3.2 billion to
$3.1 billion. Year-end total capital exceeded $26 billion, up
$3 billion, with the Tier 1 capital ratio at 7.8%. Reserves are
$5.2 billion. In all, 1994 was a tremendous year."
Mr. Reed continued, "Market participants are understandably
concerned about the financial situation in Mexico. That country
is going through a difficult adjustment, which will not be
smooth. Citibank's franchise and business in Mexico are
strong -- we have not experienced any important negative impact
on our operations and we do not anticipate any serious problems
going forward. We are actively trying to be of help during this
period."
Total adjusted revenues in 1994 were flat with those in
1993, despite a decline of more than $1 billion in trading
revenues. In the quarter, revenues (adjusted to exclude credit-
related costs, the effect of credit card securitization and
capital building transactions) were a record $4.8 billion, up 4%
from the 1994 third quarter and up 5% from the 1993 fourth
quarter. During the quarter there was a $180 million pretax gain
on a venture capital holding, and Global Consumer reported
broadly based improvement.
Trading revenues were $214 million in the fourth quarter,
down $73 million from the 1994 third quarter and down
$213 million from the 1993 fourth quarter; they were $731 million
in 1994, down by $1.2 billion from the previous year. Excluding
trading, revenues in the fourth quarter increased by 6% from the
1994 third quarter and 10% from the 1993 fourth quarter and, in
the year, by 8% from 1993.
page 2
Operating expenses in the quarter were $2.7 billion, up 4%
from the 1994 third quarter and 5% from the 1993 fourth quarter,
adjusted to exclude the cost of Other Real Estate Owned (OREO)
and 1993 restructuring costs. Operating expenses for the year
were $10.2 billion, up 3% from 1993.
The company continued to strengthen its balance sheet.
Total regulatory capital at December 31, 1994 was $26.1 billion,
estimated to be 12.0% of risk-adjusted assets, and the Tier 1
capital ratio increased to an estimated 7.8% from 7.47% at the
end of the 1994 third quarter. At December 31, 1993, the total
capital ratio was 11.45% and the Tier 1 ratio was 6.62%.
Loan loss reserves increased by $95 million in the quarter
to $5.2 billion at year-end, compared with $4.4 billion at
December 31, 1993.
Return on common equity (excluding accounting changes) was
29.0% for the quarter and 26.3% for the year, compared with 19.9%
and 17.7% for the same 1993 periods. Return on total
stockholders' equity was 24.0% in the fourth quarter and 21.8% in
1994.
Commercial cash-basis loans and OREO dropped by $1.2 billion
in the quarter to $3.1 billion. Commercial credit costs were
$239 million in 1994, down from $1.0 billion in 1993, and
consumer credit costs were $2.3 billion in 1994, down from
$2.7 billion in the previous year. In the fourth quarter
commercial credit costs were $66 million, compared with
$40 million in the 1994 third quarter and $126 million in the
1993 fourth quarter; consumer credit costs were $595 million,
compared with $544 million in the 1994 third quarter and
$651 million in the 1993 fourth quarter.
Capital building transactions amounted to $49 million (after
tax) for the year, including a $39 million (after tax) writedown
in the fourth quarter of an Argentine equity investment.
Income tax expense related to current operations included a
reduction of $230 million in the fourth quarter to bring the 1994
effective tax rate to 29% from the 34% reported in the first nine
months, reflecting an improved level and mix of earnings. The
1993 effective rate was 40%.
RESULTS OF BUSINESS OPERATIONS
Global Consumer
Global Consumer net income of $1.8 billion in 1994 increased
by $480 million, or 37%, from 1993 (excluding 1993 fourth quarter
page 3
restructuring charges of $143 million). This was the third
straight year of double-digit gains in the consumer business.
The improvement was driven by adjusted revenues, which grew
significantly faster than operating expenses in 1994 (by $537
million of revenues compared with $225 million of expenses), and
by lower write-offs in the U.S. credit card business. The growth
of revenues and associated expenses was paced by strong business
expansion in emerging markets.
Strategies to reposition U.S. bank cards, which were
initiated in 1993, took effect in 1994 and were successful in
increasing receivables, accounts and charge volumes. Managed
U.S. receivables were up by $4.5 billion, or 13%, from year-end
1993. Accounts increased by 3.2 million, or 16%, from year-end
1993. Charge volumes in the 1994 fourth quarter increased by
$4.4 billion, or 26%, from the same 1993 quarter.
Consumer credit costs in 1994 of $2.3 billion (adjusted
principally for the effect of credit card securitization) were
15% lower than in 1993. Consumer loans on the balance sheet that
are delinquent 90 days or more fell to 3.4% of total consumer
loans, compared with 4.2% at year-end 1993. Cash-basis loans
declined in 1994 by $324 million to $2.5 billion, and OREO
dropped in the year by $383 million to $829 million.
Net income in the fourth quarter was $473 million, up by
$101 million (excluding restructuring charges) from the 1993
fourth quarter, reflecting broadly based revenue increases in the
emerging economies and lower write-offs on the managed U.S.
credit card portfolio. Total consumer credit costs (adjusted
principally for the effect of credit card securitization)
increased $51 million from the 1994 third quarter due primarily
to higher write-offs on loans to private banking clients and
small businesses in the United States.
Global Finance
Global Finance net income in 1994 was $1.4 billion, compared
with $1.7 billion in the prior year (excluding a 1993 fourth
quarter restructuring charge of $95 million after tax).
Improvements came from a drop in credit costs, chiefly from a
larger volume of recoveries, as well as from gains from venture
capital activities, higher net interest revenue and increases in
fees from the transaction services business. These were more
than offset by sharply lower trading revenues.
Net income from activities in North America, Europe and
Japan in 1994 was $595 million, compared with $951 million
(excluding restructuring charges) in 1993. The 1994 results
reflected a lower level of trading revenues. The year-to-year
page 4
decline in trading was partially offset by improvements in
credit-related items and higher revenues from venture capital
activities, which included an after-tax gain of $115 million
resulting from a tender offer for a holding in Reliance Electric
Co. in the 1994 fourth quarter.
The businesses in the emerging economies reported net income
of $809 million in 1994, compared with $757 million (excluding
restructuring charges) in 1993. Net interest revenue was
particularly high in the 1994 third quarter, benefiting from an
unusually favorable interest rate environment in Brazil and
release of a Brazilian gross-receipts tax reserve.
Global Finance adjusted revenues of $5.5 billion in 1994
compared with $6.1 billion in 1993. Excluding trading revenues,
which declined from unusually high 1993 levels, revenues were up
19% from the 1993 fourth quarter and 14% from the full 1993 year,
led by increases in the emerging economies and by the higher
contributions from venture capital activities.
Adjusted operating expenses rose 6% in 1994, with the
increases chiefly in North America and Europe, where they were
broadly related to personnel and investment in the transaction
services business and marketing, as well as in support of
business expansion in the emerging economies.
Credit recoveries and gains from the sale of OREO properties
contributed to a positive net credit amount of $116 million in
1994. Credit-related costs of $10 million in the 1994 fourth
quarter were up from both the 1994 third quarter and the year-ago
quarter, primarily reflecting a lower level of credit recoveries
in the 1994 fourth quarter, as well as a modest increase in
write-offs compared with those in the 1994 third quarter.
Cash-basis loans of $470 million at December 31, 1994
compared with $755 million a year ago. OREO of $152 million at
1994 year-end was reduced from $464 million 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
$915 million were down from $1.3 billion at the end of the 1994
third quarter and from $1.7 billion at the 1993 year-end. OREO
totaled $1.4 billion at year-end 1994, down from $1.8 billion at
the end of the third quarter and $2.3 billion at December 31,
1993.
page 5
Total exposure was reduced by approximately $1.4 billion
during the quarter, to $9.9 billion at 1994 year-end, down
$3.7 billion from a year ago. The decreases resulted from
various restructurings, sales, write-offs, writedowns and
paydowns.
North America Commercial Real Estate reported a net loss of
$298 million in the 1994 full year, an improvement from the net
loss of $635 million in 1993. The decreased loss reflected
significantly lower credit-related costs.
Cross-Border Refinancing Portfolio
The cross-border refinancing portfolio reported 1994 net
income of $221 million, compared with $85 million in 1993. The
1994 results reflected both higher revenues and releases from
reserves of $64 million in the year, $20 million of which
occurred in the fourth quarter.
Cash-basis loans totaled $104 million at December 31, 1994,
compared with $140 million at the end of the third quarter and
$1.0 billion a year ago. The reduction in cash-basis loans in
the year reflected primarily the effects of the Brazil
refinancing agreement completed in the 1994 second quarter.
In addition to Brazil, refinancing agreements were also
completed with the Dominican Republic and Poland, and substantive
progress has been made toward completing an agreement with
Ecuador.
Employment
Total employment was 82,600 at year-end 1994, compared with
81,500 a year earlier. Employees in offices outside the United
States increased, especially in support of consumer activities in
Asia and Latin America.
Tables detailing key financial data, an analysis of
operating margin pretax earnings, business results and credit
indicators follow, along with financial statements. Further
details concerning the financial results will be available in
March in Citicorp's Form 10-K.
Page 6 - Citicorp 1994 results - 1/17/95
KEY RATIOS & OTHER CONSOLIDATED FINANCIAL DATA
<TABLE>
<CAPTION>
Fourth Quarter Full Year
1994 1993 1994 1993
------ ------ ------ ------
<S> <C> <C> <C> <C>
NET INCOME ($M):
Before Cumulative Effect
of Accounting Changes..... $1,042 $ 575 $3,422 $1,919
After Cumulative Effect
of Accounting Changes(A).. $1,042 $ 575 $3,366 $2,219
NET INCOME PER COMMON SHARE:
On Common & Common
Equivalent Shares
Before Cumulative Effect
of Accounting Changes..... $ 2.20 $ 1.16 $ 7.15 $ 3.82
After Cumulative Effect
of Accounting Changes(A).. $ 2.20 $ 1.16 $ 7.03 $ 4.50
Assuming Full Dilution
Before Cumulative Effect
of Accounting Changes..... $ 1.95 $ 1.06 $ 6.40 $ 3.53
After Cumulative Effect
of Accounting Changes(A).. $ 1.95 $ 1.06 $ 6.29 $ 4.11
COMMON STOCKHOLDERS' EQUITY
PER SHARE(B)............... $34.38 $26.04
CLOSING STOCK PRICE
AT QUARTER END............. $41.38 $36.88
PROFITABILITY RATIOS (Annualized):
Return on Total Assets(C):
Before Accounting Changes.. 1.55% 0.98% 1.31% 0.84%
After Accounting Changes(A) 1.55% 0.98% 1.29% 0.97%
Return on Common Stockholders'
Equity(B):
Before Accounting Changes.. 29.0% 19.9% 26.3% 17.7%
After Accounting Changes(A) 29.0% 19.9% 25.8% 21.1%
Return on Total Stockholders'
Equity(B):
Before Accounting Changes.. 24.0% 16.7% 21.8% 15.3%
After Accounting Changes(A) 24.0% 16.7% 21.4% 17.7%
CAPITAL:
Tier 1 ($B)................ $ 16.9 $ 13.4
Tier 1 & 2 ($B)(D)......... $ 26.1 $ 23.2
Tier 1 Ratio(D)............ 7.8% 6.6%
Tier 1 & 2 Ratio(D)........ 12.0% 11.5%
Common Equity as a
% of Total Assets(B)(C).. 5.4% 4.6%
Total Equity as a
% of Total Assets(B)(C).. 7.1% 6.4%
DIVIDENDS DECLARED ($M):
Common................... $ 59 $ - $ 176 $ -
Preferred................ $ 91 $ 86 $ 358 $ 312
(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 results - 1/17/95
OPERATING MARGIN
($ Millions)
<TABLE>
<CAPTION>
Fourth Quarter Full Year
1994 1993 1994 1993
------ ------ ------- -------
<S> <C> <C> <C> <C>
Total Revenue .......... $4,512 $4,152 $16,748 $16,075
Effect of Credit Card
Securitization......... 189 292 934 1,282
Net Cost to Carry(A).... (1) 43 89 252
Capital Building
Transactions........... 60 61 (80) 2
----- ----- ------ ------
Adjusted Revenue........ $4,760 $4,548 $17,691 $17,611
----- ----- ------ ------
Total Operating
Expense................ $2,723 $3,021 $10,256 $10,615
Net OREO Costs (B)...... 5 3 (9) (245)
Restructuring Charges... - (425) - (425)
----- ----- ------ ------
Adjusted Operating
Expense................ $2,728 $2,599 $10,247 $ 9,945
----- ----- ------ ------
Operating Margin........ $2,032 $1,949 $ 7,444 $ 7,666
Consumer Credit
Costs (C).............. 595 651 2,338 2,740
Commercial Credit
Costs (D).............. 66 126 239 1,036
----- ----- ------ ------
Operating Margin
Less Credit Costs...... $1,371 $1,172 $ 4,867 $ 3,890
Add'l Provision:
- -Consumer(E)............ 50 63 200 276
- -Commercial(E).......... 50 63 200 327
- -Refinancing Portfolio(F) (20) - (64) -
Capital Building
Transactions........... (60) (61) 80 (2)
Restructuring Charges... - 425 - 425
----- ----- ------ ------
Income Before Taxes and
Cumulative Effect of
Accounting Changes.... $1,231 $ 560 $ 4,611 $ 2,860
===== ===== ====== ======
(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 results - 1/17/95
BUSINESS FOCUS
Net Income (Loss)
($ Millions)
<TABLE>
<CAPTION>
Fourth Quarter Full Year
1994 1993(A) 1994 1993(A)
------ ------ ------ ------
<S> <C> <C> <C> <C>
Global Consumer:
North America, Europe
and Japan............. $ 287 $ 83 $1,102 $ 616
Emerging Economies...... 186 146 686 549
----- ----- ----- -----
Total Global Consumer.... $ 473 $ 229 $1,788 $1,165
----- ----- ----- -----
Global Finance:
North America, Europe
and Japan............. $ 218 $ 186 $ 595 $ 868
Emerging Economies...... 205 227 809 745
----- ----- ----- -----
Total Global Finance..... $ 423 $ 413 $1,404 $1,613
----- ----- ----- -----
North America Commercial
Real Estate............ $ (65) $ (116) $ (298) $ (635)
Cross-Border Refinancing
Portfolio.............. 74 8 221 85
Corporate Items(B)....... 137 41 307 (309)
----- ----- ----- -----
$1,042 $ 575 $3,422 $1,919
Cumulative Effect of
Accounting Changes(C).. - - (56) 300
----- ----- ----- -----
Citicorp................. $1,042 $ 575 $3,366 $2,219
===== ===== ===== =====
(A) Reclassified to conform to current quarter's presentation.
(B) Corporate Items includes the effects of capital building
transactions and the offset created by attributing income
taxes to business activities on a local tax basis. See
footnote B in Corporate Items section for further discussion.
(C) The 1994 results include the cumulative effect of adopting
SFAS No. 112, "Employers' Accounting for Postemployment
Benefits," as of January 1, 1994. The 1993 results include
the cumulative effect of adopting SFAS No. 109, "Accounting
for Income Taxes," as of January 1, 1993.
</TABLE>
Page 9 - Citicorp 1994 results - 1/17/95
GLOBAL CONSUMER
($ Millions)
<TABLE>
<CAPTION>
Fourth Quarter % Full Year %
1994 1993(A) Chg 1994 1993(A) Chg
------ ------- --- ------ ------ ---
<S> <C> <C> <C> <C> <C> <C>
Total Revenue.......... $2,768 $2,485 11 $10,386 $ 9,494 9
----- ----- ------ ------
Restructuring Charges.. $ - $ 233 NM $ - $ 233 NM
Other Operating Expense 1,640 1,557 5 $ 6,216 $ 5,981 4
----- ----- ------ ------
Total Operating Expense 1,640 1,790 (8) 6,216 6,214 -
----- ----- ------ ------
Provision For
Credit Losses ........ $ 449 $ 414 8 $ 1,553 $ 1,686 (8)
----- ----- ------ ------
Income Before Taxes.... $ 679 $ 281 NM $ 2,617 $ 1,594 64
Income Taxes........... 206 52 NM 829 429 93
----- ----- ------ ------
Net Income............. $ 473 $ 229 NM $ 1,788 $ 1,165 53
===== ===== ====== ======
Average Assets ($B).... 113 101 12 107 100 7
Return on Assets....... 1.66% 0.90% - 1.67% 1.17% -
OTHER DATA:
North America, Europe,
and Japan:
Net Income............. 287 83 NM 1,102 616 79
Average Assets($B)..... 81 75 8 77 75 3
Return on Assets....... 1.41% 0.44% - 1.43% 0.82% -
Emerging Economies:
Net Income............. 186 146 27 686 549 25
Average Assets($B)..... 32 26 23 30 25 20
Return on Assets....... 2.31% 2.23% - 2.29% 2.20% -
Adjusted for Credit-
Related Items:
Total Revenue(B):
North America,
Europe and Japan... $2,238 $2,191 2 $ 8,724 $ 8,630 1
Emerging Economies.. 716 585 22 2,599 2,156 21
----- ----- ------ ------
Total Global Consumer. $2,954 $2,776 6 $11,323 $10,786 5
----- ----- ------ ------
Other Operating
Expense(C):
North America,
Europe and Japan... $1,232 $1,216 1 $ 4,723 $ 4,713 -
Emerging Economies.. 398 332 20 1,445 1,230 17
----- ----- ------ ------
Total Global Consumer. $1,630 $1,548 5 $ 6,168 $ 5,943 4
----- ----- ------ ------
Credit Costs (D):
North America,
Europe and Japan... $ 550 $ 609 (10) $ 2,169 $ 2,586 (16)
Emerging Economies.. 45 42 7 169 154 10
----- ----- ------ ------
Total Global Consumer. $ 595 $ 651 (9) $ 2,338 $ 2,740 (15)
----- ----- ------ ------
(A) Reclassified to conform to current quarter's presentation.
(B) Adjusted principally for the effect of credit card
receivables 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 receivables securitization. Includes U.S.
credit card net credit losses for both held and securitized
receivables of $322 million and $1,369 million for 1994
fourth quarter and full year, respectively, and $399 million
and $1,733 million for the comparable periods of 1993.
NM Not meaningful as percentage exceeds 100%.
</TABLE>
Page 10 - Citicorp 1994 results - 1/17/95
GLOBAL FINANCE
($ Millions)
<TABLE>
<CAPTION>
Fourth Quarter % Full Year %
1994 1993(A) Chg 1994 1993(A) Chg
------ ------ --- ------ ------- ---
<S> <C> <C> <C> <C> <C> <C>
Total Revenue........... $1,582 $1,556 2 $5,496 $6,011 (9)
----- ----- ----- -----
Restructuring Charges... $ - $ 156 NM $ - $ 156 NM
Other Operating Expense. 947 821 15 $3,408 $3,277 4
----- ----- ----- -----
Total Operating Expense. 947 977 (3) 3,408 3,433 (1)
----- ----- ----- -----
Provision For
Credit Losses ......... $ 41 $ 16 NM $ - $ 305 NM
----- ----- ----- -----
Income Before Taxes..... $ 594 $ 563 6 $2,088 $2,273 (8)
Income Taxes............ 171 150 14 684 660 4
----- ----- ----- -----
Net Income.............. $ 423 $ 413 2 $1,404 $1,613 (13)
===== ===== ===== =====
Average Assets ($B)(B).. 140 114 23 139 109 28
Return on Assets........ 1.20% 1.44% - 1.01% 1.48% -
OTHER DATA:
North America, Europe,
and Japan:
Net Income.............. 218 186 17 595 868 (31)
Average Assets($B)(B)... 95 76 25 96 72 33
Return on Assets........ 0.91% 0.97% - 0.62% 1.21% -
Emerging Economies:
Net Income.............. 205 227 (10) 809 745 9
Average Assets($B)(B)... 45 38 18 43 37 16
Return on Assets........ 1.81% 2.37% - 1.88% 2.01% -
Adjusted for Credit-
Related Items:
Total Revenue(C):
North America,
Europe and Japan.... $ 979 $ 975 - $3,193 $3,901 (18)
Emerging Economies... 599 592 1 2,314 2,168 7
----- ----- ----- -----
Total Global Finance... $1,578 $1,567 1 $5,507 $6,069 (9)
----- ----- ----- -----
Other Operating
Expense(D):
North America,
Europe and Japan.... $ 647 $ 576 12 $2,332 $2,195 6
Emerging Economies... 314 280 12 1,153 1,102 5
----- ----- ----- -----
Total Global Finance... $ 961 $ 856 12 $3,485 $3,297 6
----- ----- ----- -----
Credit Costs (E):
North America,
Europe and Japan.... $ 5 $ (4) NM $ (128) $ 150 NM
Emerging Economies... 5 (4) NM 12 45 (73)
----- ----- ----- -----
Total Global Finance... $ 10 $ (8) NM $ (116) $ 195 NM
----- ----- ----- -----
(A) Reclassified to conform to current quarter's presentation.
(B) The 1994 periods reflect the effect of adopting FASB
Interpretation No. 39, "Offsetting of Amounts Related to
Certain Contracts," as of January 1, 1994.
(C) After adding back the net cost to carry cash-basis loans
and OREO.
(D) Excludes net write-downs, 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.
NM Not meaningful as percentage exceeds 100%.
</TABLE>
Page 11 - Citicorp 1994 results - 1/17/95
NORTH AMERICA COMMERCIAL REAL ESTATE
($ Millions)
<TABLE>
<CAPTION>
Fourth Quarter % Full Year %
1994 1993(A) Chg 1994 1993(A) Chg
------ ------ --- ----- ------ ---
<S> <C> <C> <C> <C> <C> <C>
Total Revenue........... $ 26 $ 8 NM $ 81 $ (21) NM
---- ----- ----- ------
Total Operating Expense. $ 33 $ 62 (47) $ 177 $ 386 (54)
---- ----- ----- ------
Provision For
Credit Losses.......... $ 88 $ 141 (38) $ 394 $ 610 (35)
---- ----- ----- ------
(Loss) Before Taxes..... $ (95) $ (195) 51 $ (490) $(1,017) 52
Income Taxes............ (30) (79) 62 (192) (382) 50
---- ----- ----- ------
Net (Loss).............. $ (65) $ (116) 44 $ (298) $ (635) 53
==== ===== ===== ======
OTHER DATA:
Average Assets ($B)..... 7 11 (36) 8 12 (33)
Adjusted for Credit-
Related Items:
Total Revenue (B)..... 32 41 (22) 156 163 (4)
Total Operating
Expense (C).......... 34 39 (13) 139 159 (13)
Credit Costs (D)...... 56 134 (58) 357 842 (58)
(A) Reclassified to conform to current quarter's presentation.
(B) After adding back the net cost to carry cash-basis loans
and OREO.
(C) Excludes net write-downs, net gains (losses) on sales and
direct revenues and expenses related to OREO.
(D) Includes net write-offs, the net cost to carry cash-basis
loans and OREO, as well as net write-downs, net gains
(losses) on sales and direct revenues and expenses related
to OREO.
NM Not meaningful as percentage exceeds 100%.
</TABLE>
Page 12 - Citicorp 1994 results - 1/17/95
CROSS-BORDER REFINANCING PORTFOLIO
($ Millions)
<TABLE>
<CAPTION>
Fourth Quarter % Full Year %
1994 1993(A) Chg 1994 1993(A)Chg
------ ------ --- ------ ------ ---
<S> <C> <C> <C> <C> <C> <C>
Total Revenue .......... $ 64 $ 20 NM $ 205 $ 114 80
----- ----- ----- -----
Total Operating Expense. $ 6 $ 7 (14) $ 26 $ 27 (4)
----- ----- ----- -----
Provision For
Credit Losses.......... $ (20) $ - - $ (66) $ (1) NM
----- ----- ----- -----
Income Before Taxes $ 78 $ 13 NM $ 245 $ 88 NM
Income Taxes............ 4 5 (20) 24 3 NM
----- ----- ----- -----
Net Income.............. $ 74 $ 8 NM $ 221 $ 85 NM
===== ===== ===== =====
OTHER DATA:
Average Assets ($B)..... 4 3 33 3 3 -
CORPORATE ITEMS
($ Millions)
Fourth Quarter % Full Year %
1994 1993(A) Chg 1994 1993(A)Chg
------ ------ --- ----- ------ ---
Total Revenue........... $ 72 $ 83 (13) $ 580 $ 477 22
----- ----- ----- -----
Restructuring Charges... $ - $ 36 NM $ - $ 36 NM
Other Operating Expense. 97 149 (35) 429 519 (17)
----- ----- ----- -----
Total Operating Expense. $ 97 185 (48) $ 429 555 (23)
----- ----- ----- -----
Income (Loss) Before
Taxes.................. $ (25) $ (102) 75 $ 151 $ (78) NM
Income Taxes............ (162) (143)(13) (156) 231 NM
----- ----- ----- -----
Net Income (Loss) (B)... $ 137 $ 41 NM $ 307 $ (309) NM
===== ===== ===== =====
(A) Reclassified to conform to current quarter's presentation.
(B) Corporate Items includes net after-tax gains from capital
building transactions. Additionally, Corporate Items
includes the offset created by attributing income taxes to
business activities on a local tax basis. In the fourth
quarter of 1994, this offset reflects the $230 million tax
expense reduction related to the effective tax rate on
current operations. For the full year 1994, decreases in
the valuation allowance related to deferred tax assets
totaling $479 million are reflected in the effective tax
rate on current operations. Corporate Items also reflects
valuation allowance reductions that result from the
reassessment of future earnings expectations, which amounted
to $150 million in the 1994 second quarter and $200 million
in the 1993 fourth quarter.
NM Not meaningful as percentage exceeds 100%.
</TABLE>
Page 13 - Citicorp 1994 results - 1/17/95
ASSET QUALITY
COMMERCIAL CASH-BASIS LOANS AND OREO
($ Millions)
<TABLE>
<CAPTION>
4Q 3Q 2Q 1Q 4Q
1994 1994 1994 1994 1993
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
North America Commercial
Real Estate............. $ 915 $1,321 $1,495 $1,654 $1,719
Global Finance........... 470 534 581 699 755
----- ----- ----- ----- -----
Comm'l Cash-Basis Loans
(excluding Refinancing) $1,385 $1,855 $2,076 $2,353 $2,474
Cross-Border
Refinancing(A).......... 104 140 165 991 1,041
----- ----- ----- ----- -----
Total Commercial
Cash-Basis Loans........ $1,489 $1,995 $2,241 $3,344 $3,515
Commercial OREO.......... 1,586 2,301 2,415 2,598 2,796
----- ----- ----- ----- -----
Total Comm'l Cash-Basis
Loans & OREO............ $3,075 $4,296 $4,656 $5,942 $6,311
===== ===== ===== ===== =====
ALLOWANCE FOR CREDIT LOSSES
4Q 3Q 2Q 1Q 4Q
1994 1994 1994 1994 1993
----- ----- ----- ----- -----
Global Consumer.......... 1,834 1,790 1,711 1,639 1,596
Commercial(B)............ 3,321 3,270 3,201 2,595 2,545
Cross-Border
Refinancing............. - - - 238 238
----- ----- ----- ----- -----
Total.................... $5,155 $5,060 $4,912 $4,472 $4,379
===== ===== ===== ===== =====
Reserve for Global
Consumer Sold Portfolios $ 422 $ 467 $ 503 $ 538 $ 527
ALLOWANCE AS A PERCENTAGE
OF TOTAL LOANS
4Q 3Q 2Q 1Q 4Q
1994 1994 1994 1994 1993
----- ----- ----- ----- -----
Global Consumer.......... 1.90% 1.97% 2.00% 1.98% 1.89%
Commercial(B)............ 5.95% 5.90% 5.76% 4.88% 4.88%
Total.................... 3.38% 3.46% 3.48% 3.26% 3.15%
ADDITIONAL DATA
4Q 3Q 2Q 1Q 4Q
1994 1994 1994 1994 1993
Commercial Allowance ----- ----- ----- ----- -----
as % of Commercial
Cash-Basis Loans(A)(B).. 223.0% 163.9% 142.8% 110.3% 102.9%
Commercial Renegotiated
Loans(C)................ $ 718 $ 524 $ 417 $ 384 $ 708
Consumer OREO............ $ 829 $ 787 $1,194 $1,247 $1,212
Consumer Cash-Basis Loans $2,539 $2,713 $2,813 $2,904 $2,863
(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.
(C) Amount at December 31, 1994 includes approximately $390
million of loans that have been renegotiated during the year
at a market rate of interest.
</TABLE>
Page 14 - Citicorp 1994 results - 1/17/95
DETAILS OF CREDIT LOSS EXPERIENCE
($ Millions)
<TABLE>
<CAPTION>
4Q 3Q 2Q 1Q 4Q
1994 1994 1994 1994 1993
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
NET WRITE-OFFS
(RECOVERIES):
Global Consumer ...... $ 399 $ 315 $ 311 $ 328 $ 351
North America Comm'l
Real Estate.......... 51 62 63 68 78
Global Finance........ 28 (41) 9 (46) 16
----- ----- ----- ----- -----
Total Commercial
(excluding
Refinancing)........ $ 79 $ 21 $ 72 $ 22 $ 94
----- ----- ----- ----- -----
Cross-Border
Refinancing(A)....... (20) (19) (329) (35) (10)
----- ----- ----- ----- -----
Total................. $ 458 $ 317 $ 54 $ 315 $ 435
===== ===== ===== ===== =====
4Q 3Q 2Q 1Q 4Q
1994 1994 1994 1994 1993
----- ----- ----- ----- -----
PROVISION FOR
CREDIT LOSSES:
Global Consumer....... $ 449 $ 365 $ 361 $ 378 $ 414
North America Comm'l
Real Estate.......... 88 99 101 106 141
Global Finance........ 41 (28) 21 (34) 16
----- ----- ----- ----- -----
Total Commercial
(excluding
Refinancing)........ $ 129 $ 71 $ 122 $ 72 $ 157
----- ----- ----- ----- -----
Cross-Border
Refinancing.......... (20) - (11) (35) -
----- ----- ----- ----- -----
Total................. $ 558 $ 436 $ 472 $ 415 $ 571
===== ===== ===== ===== =====
4Q 3Q 2Q 1Q 4Q
1994 1994 1994 1994 1993
----- ----- ----- ----- -----
COMMERCIAL NET OREO
WRITE-DOWNS(RECOVERIES):
North America Comm'l
Real Estate.......... $ 7 $ 24 $ 12 $ 36 $ 27
Global Finance........ (14) (9) (25) (6) (30)
----- ----- ----- ----- -----
Total................. $ (7) $ 15 $ (13) $ 30 $ (3)
===== ===== ===== ===== =====
(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 results - 1/17/95
CONSOLIDATED STATEMENT OF INCOME
(In Millions of Dollars,
Except Per Share Amounts)
<TABLE>
<CAPTION>
Fourth Quarter % Full Year %
1994 1993 Chg 1994 1993 Chg
----- ------ --- ------ ------ ---
<S> <C> <C> <C> <C> <C> <C>
Interest Revenue....... $5,402 $6,254 (14) $23,813 $23,811 -
Interest Expense....... 3,080 4,247 (27) 14,902 16,121 (8)
----- ----- ------ ------
Net Interest Revenue... $2,322 $2,007 16 $ 8,911 $ 7,690 16
----- ----- ------ ------
Fees & Commissions.... $1,377 $1,357 1 $ 5,155 $ 5,057 2
Trading Account....... 29 269 (89) 158 939 (83)
Foreign Exchange...... 185 158 17 573 995 (42)
Securities Trans...... 22 3 NM 200 94 NM
Other Revenue......... 577 358 61 1,751 1,300 35
----- ----- ------ ------
Total Fees, Commissions
and Other Revenue..... $2,190 $2,145 2 $ 7,837 $ 8,385 (7)
----- ----- ------ ------
TOTAL REVENUE.......... $4,512 $4,152 9 $16,748 $16,075 4
----- ----- ------ ------
PROVISION FOR
CREDIT LOSSES......... $ 558 $ 571 (2) $ 1,881 $ 2,600 (28)
----- ----- ------ ------
Operating Expense:
Salaries............. $1,051 $ 978 7 $ 4,029 $ 3,817 6
Employee Benefits.... 284 264 8 1,136 1,028 11
Net Premises &
Equipment Expense.... 427 401 6 1,583 1,601 (1)
Restructuring Charges - 425 NM - 425 NM
Other Expense........ 961 953 1 3,508 3,744 (6)
----- ----- ------ ------
TOTAL OPERATING EXPENSE $2,723 $3,021 (10) $10,256 $10,615 (3)
----- ----- ------ ------
INCOME BEFORE TAXES
AND CUMULATIVE EFFECT
OF ACCOUNTING CHANGES. $1,231 $ 560 NM $ 4,611 $ 2,860 61
Income Taxes(A)....... 189 (15) NM 1,189 941 26
----- ----- ------ ------
INCOME BEF. CUMULATIVE
EFFECT OF ACCTG CHGS.. $1,042 $ 575 81 $ 3,422 $ 1,919 78
Cumulative Effect of
Accounting Changes(B). - - - (56) 300 NM
----- ----- ------ ------
NET INCOME............. $1,042 $ 575 81 $ 3,366 $ 2,219 52
===== ===== ====== ======
INCOME APPLICABLE
TO COMMON STOCK....... $ 950 $ 488 95 $ 3,010 $ 1,900 58
===== ===== ====== ======
EARNINGS PER SHARE :
On Common & Common Equiv. Shs
Income Bef. Cumulative
Effect of Acctg Chgs. $ 2.20 $ 1.16 $ 7.15 $ 3.82
Income After Cumulative
Effect of Acctg Chgs. $ 2.20 $ 1.16 $ 7.03 $ 4.50
Assuming Full Dilution
Income Bef. Cumulative
Effect of Acctg Chgs. $ 1.95 $ 1.06 $ 6.40 $ 3.53
Income After Cumulative
Effect of Acctg Chgs. $ 1.95 $ 1.06 $ 6.29 $ 4.11
(A)Amounts for the full year 1994 and 1993 (1993 amount reflected
in the fourth quarter)include tax benefits of $150 million and
$200 million, respectively, 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.
NM Not meaningful as percentage exceeds 100%.
</TABLE>
Page 16 - Citicorp 1994 results - 1/17/95
CONSOLIDATED BALANCE SHEET CITICORP and Subsidiaries
(In Millions of Dollars)
<TABLE>
<CAPTION>
Dec. 31 Dec. 31 %
1994 1993(A) Chg
------- ------- ---
<S> <C> <C> <C>
ASSETS
Cash and Due from Banks......... $ 6,470 $ 4,836 34
Deposits at Interest with Banks. 6,862 6,749 2
Securities(B):
Held to Maturity............... 5,092 5,637 (10)
Available for Sale............. 13,602 8,705 56
Venture Capital................ 2,009 1,489 35
Trading Account Assets(C)....... 38,875 23,783 63
Federal Funds Sold &
Securities Purchased
Under Resale Agreements........ 6,995 7,339 (5)
Loans, Net
Consumer....................... $ 96,600 $ 84,354 15
Commercial(B).................. 55,820 54,613 2
------- -------
Total Loans................. $152,420 $138,967 10
Allowance for Credit Losses..... (5,155) (4,379) (18)
------- -------
Total Loans, Net............ $147,265 $134,588 9
Customers' Acceptance Liability $ 1,420 $ 1,512 (6)
Premises & Equipment, Net....... 4,062 3,842 6
Interest & Fees Receivable...... 2,654 2,552 4
Other Assets.................... 15,183 15,542 (2)
------- -------
Total........................... $250,489 $216,574 16
======= =======
LIABILITIES
Non-Int. Deposits (in the U.S.). $ 13,648 $ 13,442 2
Int. Deposits (in the U.S.)..... 35,699 38,347 (7)
Non-Int. Deposits (Outside the
U.S.).......................... 7,212 6,644 9
Int. Deposits(Outside the U.S.). 99,167 86,656 14
------- -------
Total Deposits.............. $155,726 $145,089 7
Trading Account Liabilities(C).. $ 22,382 $ 5,478 NM
Purchased Funds &
Other Borrowings............... 20,907 16,777 25
Acceptances Outstanding......... 1,440 1,531 (6)
Accrued Taxes & Other Expenses.. 5,493 6,452 (15)
Other Liabilities............... 8,878 9,134 (3)
Long-Term Debt.................. 16,497 16,010 3
Subordinated Capital Notes...... 1,397 2,150 (35)
STOCKHOLDERS' EQUITY
Preferred Stock
(Without Par Value)............ $ 4,187 $ 3,887 8
Common Stock (Par value $1.00).. 421 412 2
Surplus......................... 4,194 3,898 8
Retained Earnings .............. 9,561 6,729 42
Net Unrealized Gains-Securities
Available for Sale(B).......... 278 - NM
Foreign Currency Translation.... (471) (580) 19
Common Stock in Treasury,
at Cost........................ (401) (393) (2)
------- -------
Total Stockholders' Equity.. $ 17,769 $ 13,953 27
------- -------
Total........................... $250,489 $216,574 16
======= =======
(A) Reclassified to conform to current quarter's presentation.
(B) Balances at December 31, 1994 reflect the effect of adopting
Statement of Financial Accounting Standards No. 115,
"Accounting for Certain Investments in Debt and Equity
Securities" including the reclassification of certain
commercial loans to Held-to-Maturity and Available-for-Sale
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.
(C) Trading Account Assets and Trading Account Liabilities as of
December 31, 1994 include approximately $13.0 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 $3.1 billion,
respectively, to provide for consistent presentation of
amounts previously recorded in Other Assets and Other
Liabilities representing revaluation gains and losses and
other balances related to these contracts.
NM Not meaningful as percentage exceeds 100%.
</TABLE>
Page 17 - Citicorp 1994 results - 1/17/95
ADDITIONAL FINANCIAL DATA
($ Millions)
<TABLE>
<CAPTION>
4Q 3Q 2Q 1Q 4Q
1994 1994 1994 1994 1993
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
NET INTEREST REVENUE(A)
Net Interest Revenue.. $ 2,328 $ 2,352 $ 2,170 $ 2,087 $ 2,012
Net Interest Margin... 4.21% 4.37% 4.15% 4.01% 3.94%
ADJUSTED TO EXCLUDE
THE EFFECT OF CREDIT
CARD SECURITIZATION:
Net Interest Revenue.. $ 2,798 $ 2,862 $ 2,710 $ 2,616 $ 2,553
Net Interest Margin... 4.61% 4.80% 4.64% 4.52% 4.48%
CONSOLIDATED AVERAGE
BALANCES
4Q 3Q 2Q 1Q 4Q
1994 1994 1994 1994 1993
------ ------ ------ ------ ------
Loans ($B):
Consumer............. $ 93 $ 87 $ 84 $ 84 $ 82
Commercial........... 56 56 55 54 57
------ ------ ------ ------ ------
Total Average Loans... $ 149 $ 143 $ 139 $ 138 $ 139
====== ====== ====== ====== ======
Total Average
Assets($B)(B)........ $ 267 $ 265 $ 258 $ 253 $ 233
Avg. Interest Earning
Assets($B)........... $ 219 $ 214 $ 210 $ 211 $ 203
Common Stockholders'
Equity ($M)(C)....... $13,003 $12,023 $11,049 $10,562 $ 9,728
Preferred Equity ($M). 4,187 4,116 3,975 3,887 3,887
------ ------ ------ ------ ------
Total Average
Stockholders'
Equity ($M)(C)....... $17,190 $16,139 $15,024 $14,449 $13,615
====== ====== ====== ====== ======
(A) Taxable Equivalent Basis.
(B) The 1994 periods include the effect of adopting FASB
Interpretation No. 39, "Offsetting of Amounts Related
to Certain Contracts," which is reflected in non-interest
earning assets.
(C) The 1994 periods include the effect of adopting SFAS
No. 115, "Accounting for Certain Investments in Debt
and Equity Securities," as of January 1, 1994.
</TABLE>
Page 18 - Citicorp 1994 results - 1/17/95
EARNINGS PER SHARE DATA(A)
(Before Cumulative Effect
of Accounting Changes)
<TABLE>
<CAPTION>
Fourth Quarter Full Year
1994 1993 1994 1993
------- ------- ------- -------
<S> <C> <C> <C> <C>
On Common and Common
Equivalent Shares:
Earnings($ Millions).. $ 973 $ 511 $ 3,159 $ 1,693
Shares (in thousands). 443,095 441,314 441,695 443,023
Earnings Per Share.... $ 2.20 $ 1.16 $ 7.15 $ 3.82
Assuming Full Dilution:
Earnings($ Millions).. $ 1,007 $ 545 $ 3,295 $ 1,829
Shares (in thousands). 517,829 514,629 515,052 518,477
Earnings Per Share.... $ 1.95 $ 1.06 $ 6.40 $ 3.53
COMMON SHARES OUTSTANDING
(In Thousands)
End-Of-Period......... 395,081 386,490
(A) For earnings per share on common and common equivalent
shares, dividends on Conversion Preferred Stock, Series 15
($23 million in the fourth quarter of 1994 and 1993 and
$93 million in both full year periods) are added back to
income applicable to common stock, and the number of shares
issuable on conversion (38 million shares in the fourth
quarter and 40 million shares in the 1994 full year,
48 million shares in the fourth quarter of 1993 and
56 million shares in the 1993 full year) 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, the number of shares issuable on conversion of
the Conversion Preferred Stock, Series 15 are as follows:
40 million shares in the fourth quarter and full year of
1994, 48 million shares in the fourth quarter of 1993 and
56 million shares in the 1993 full year. Additionally,
dividends on Convertible Preferred Stock, Series 12 and 13
($34 million in the fourth quarter of 1994 and 1993 and
$136 million in both full year periods) are also added back
to income applicable to common stock, and the shares issuable
on conversion (73 million shares) are added to shares
outstanding. The number of common equivalent and book value
shares are calculated on a fully diluted basis as well.
</TABLE>
Page 19 - Citicorp 1994 results - 1/17/95
OTHER REVENUE DATA
<TABLE>
<CAPTION>
Fourth Quarter Full Year
1994 1993 1994 1993
------ ------ ------ ------
<S> <C> <C> <C> <C>
OTHER REVENUE
($ Millions)
Affiliate Earnings........... $ 46 $ 99 $ 208 $ 211
Securitized Credit
Card Receivables............ 260 285 955 1,083
Net Gains(Losses) from
Mortgage Pass-Through
Securitization 1 (32) (59) (135)
Activity....................
Venture Capital Gains........ 213 59 365 143
Foreign Currency Translation
(Losses).................... (6) (15) (8) (50)
Net Asset Gains/(Losses) and
Other Items................. 63 (38) 290 48
------ ------ ------- ------
Total...................... $ 577 $ 358 $ 1,751 $1,300
====== ====== ======= ======
</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: January 19, 1995
<TABLE>
<CAPTION>
CITICORP AND SUBSIDIARIES
CALCULATION OF RATIO OF INCOME TO FIXED CHARGES
(In Millions)
EXCLUDING INTEREST ON DEPOSITS
1994 1993 1992 1991 1990
------ ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
FIXED CHARGES:
INTEREST EXPENSE (OTHER THAN
INTEREST ON DEPOSITS) 5,906 6,234 5,826 5,973 9,414
INTEREST FACTOR IN RENT EXPENSE 143 147 162 171 173
------- ------- ------- ------- -------
TOTAL FIXED CHARGES 6,049 6,471 5,988 6,144 9,587
INCOME:
NET INCOME(LOSS) 3,422 (A) 1,919(B) 722 (914)(C) 318(D)
INCOME TAXES 1,189 941 696 677 508
FIXED CHARGES 6,049 6,471 5,988 6,144 9,587
------- ------- ------- ------- -------
TOTAL INCOME 10,660 9,331 7,406 5,907 10,413
======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS 1.76 1.44 1.24 0.96(E) 1.09
======= ======= ======= ======= =======
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE 14,902 16,121 16,327 17,089 23,798
INTEREST FACTOR IN RENT EXPENSE 143 147 162 171 173
------- ------- ------- ------- -------
TOTAL FIXED CHARGES 15,045 16,268 16,489 17,260 23,971
INCOME:
NET INCOME(LOSS) 3,422(A) 1,919(B) 722 (914)(C) 318(D)
INCOME TAXES 1,189 941 696 677 508
FIXED CHARGES 15,045 16,268 16,489 17,260 23,971
------- ------- ------- ------- -------
TOTAL INCOME 19,656 19,128 17,907 17,023 24,797
======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS 1.31 1.18 1.09 0.99(E) 1.03
======= ======= ======= ======= =======
(A) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1994 EXCLUDES THE CUMULATIVE EFFECT OF ADOPTING STATEMENT OF
FINANCIAL STANDARDS No. 112, "EMPLOYERS' ACCOUNTING FOR POSTEMPLOYMENT BENEFITS", OF $(56) MILLION.
(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.
</TABLE>
<TABLE>
<CAPTION>
CITICORP AND SUBSIDIARIES
CALCULATION OF RATIO OF INCOME TO FIXED CHARGES
INCLUDING PREFERRED STOCK DIVIDENDS
(In Millions)
1994 1993 1992 1991 1990
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
FIXED CHARGES:
INTEREST EXPENSE (OTHER THAN
INTEREST ON DEPOSITS) 5,906 6,324 5,826 5,973 9,414
INTEREST FACTOR IN RENT EXPENSE 143 147 162 171 173
DIVIDENDS - PREFERRED STOCK 505 465 416 271(A) 361
------- ------- ------- ------- -------
TOTAL FIXED CHARGES 6,554 6,936 6,404 6,415 9,948
INCOME:
NET INCOME(LOSS) 3,422(B) 1,919(C) 722 (914)(D) 318(E)
INCOME TAXES 1,189 941 696 677 508
FIXED CHARGES (EXCLUDING
PREFERRED STOCK DIVIDENDS 6,049 6,471 5,988 6,144 9,587
------- ------- ------- ------- -------
TOTAL INCOME 10,660 9,331 7,406 5,907 10,413
======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS 1.63 1.35 1.16 0.92(F) 1.05
======= ======= ======= ======= =======
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE 14,902 16,121 16,327 17,089 23,798
INTEREST FACTOR IN RENT EXPENSE 143 147 162 171 173
DIVIDENDS - PREFERRED STOCK 505 465 416 271(A) 361
------- ------- ------- ------- -------
TOTAL FIXED CHARGES 15,550 16,733 16,905 17,531 24,332
INCOME:
NET INCOME(LOSS) 3,422(B) 1,919(C) 722 (914)(D) 318(E)
INCOME TAXES 1,189 941 696 677 508
FIXED CHARGES (EXCLUDING
PREFERRED STOCK DIVIDENDS) 15,045 16,268 16,489 17,260 23,971
------- ------- ------- ------- -------
TOTAL INCOME 19,656 19,128 17,907 17,023 24,797
======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS 1.26 1.14 1.06 0.97(F) 1.02
======= ======= ======= ======= ======
(A) CALCULATED ON A BASIS OF AN ASSUMED TAX RATE OF OF 34%.
(B) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1994 EXCLUDES THE CUMULATIVE EFFECT OF ADOPTING STATEMENT OF
FINANCIAL ACCOUNTING STANDARDS No. 112, "EMPLOYERS' ACCOUNTING FOR POSTEMPLOYMENT BENEFITS", OF $(56)
MILLION.
(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.
</TABLE>
