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): April
18, 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 April 18, 1995 Citicorp reported net Income of net $829
million in the 1995 first quarter. This compares with 1994 first
quarter operating earnings of $609 million or net income of $553
million. The percentage increases were 36% and 50% respectively.
Per common share, fully diluted, the 1995 quarter net income
was $1.53, compared with year-earlier operating earnings of $1.12,
or net income of $1.01. (Net income figures for the 1994 first
quarter reflect adoption of the accounting standard for
postemployment benefits.)
"The earnings were a record for a first quarter," said
John S. Reed, the company's chairman. "In a volatile economic and
capital markets environment, Citicorp's businesses achieved double-
digit revenue growth. We also continued strengthening our balance
sheet, and our Tier 1 capital ratio reached 8%."
RESULTS OF BUSINESS OPERATIONS
Global Consumer
Worldwide consumer net income of $463 million represented 56%
of earnings in the first quarter. Net income increased $37
million, or 9%, from the same 1994 quarter, resulting primarily
from lower credit costs in developed economies and from business
expansion in emerging markets.
Net income from the consumer businesses in emerging markets of
$189 million rose from $170 million in the 1994 first quarter
because of higher volumes in Asia Pacific and Latin America.
Net income from the consumer businesses in North America,
Europe and Japan also improved to $274 million from $256 million in
the 1994 first quarter because of better results from the U.S.
branch business, including mortgages, and from cards in North
America and Europe. Earnings from the Private Bank declined from
the 1994 first quarter, mainly reflecting market conditions.
Worldwide consumer revenues (adjusted to exclude the effect of
credit card securitization and credit-related costs) of $2.9
billion were higher by $167 million, or 6%, than in the same 1994
quarter. The increase was due mainly to the business expansion in
emerging markets. Expenses grew 10%, or $153 million, to $1.6
billion to support the business expansion in emerging markets and
growth in cards.
Repositioning strategies for U.S. bankcards, initiated in 1993
and taking effect in an improving economy, contributed to increases
during the 12 months in managed receivables of $5.8 billion to
$38.8 billion at March 31, 1995, up 18% from March 31, 1994 and
total accounts of 3.2 million to 23.6 million, up 16%. Total
charge volumes increased in the 1995 first quarter by $4.2 billion
to $18.6 billion, up 29% from the same 1994 quarter.
Credit costs (adjusted for card securitization) declined to
$536 million, down 13% from the 1994 first quarter, because of
improvements in cards and other consumer loans in the United States
and improvements in the Private Bank. Consumer loans on the
balance sheet that are delinquent 90 days or more were 3.5% of
total consumer loans, increased from 3.4% in the 1994 fourth
quarter but below the 4.3% level at March 31, 1994.
Global Finance
Global Finance worldwide net income in the first quarter was
$337 million, up from $261 million, an increase of 29%, reflecting
higher trading revenues than in the weak 1994 first quarter.
Net income from corporate banking in emerging markets
increased to $208 million from $167 million in the 1994 first
quarter. The increase included a gain on sale of certain real
estate assets ($59 million pretax).
Net income from corporate banking activities in North America,
Europe and Japan increased by $35 million to $129 million, as
trading revenues strengthened.
Worldwide corporate banking revenues (adjusted to exclude
credit-related costs) amounted to $1.4 billion, a 20% rise from the
year-earlier quarter. Expenses were $932 million, up 17% from the
1994 first quarter. A net credit recovery of $20 million in the
1995 quarter compared with a $58 million recovery in the 1994 first
quarter.
North America Commercial Real Estate
The North America commercial real estate business reported
break-even results, compared with a loss of $76 million in the 1994
first quarter. Improved credit costs and a gain from sale of an
asset were factors in the 1995 results. Cash-basis loans and OREO
of $2.3 billion at March 31, 1995 were down slightly from year-end
and sharply from $3.8 billion at March 31, 1994.
Cross-Border Refinancing Portfolio
The cross-border refinancing portfolio reported net income of
$66 million, compared with $49 million in the year-earlier first
quarter. The results included a pretax gain of $26 million from
the completion of Ecuador's refinancing package.
<PAGE>
CONSOLIDATED RESULTS
Revenues and Expenses
Total adjusted revenues were up $530 million, or 13%, to $4.7
billion, a record for a first quarter. Trading revenues of $344
million in the quarter compared with $71 million in the 1994 first
quarter.
Operating expenses in the quarter, adjusted to exclude the
cost of OREO, were $2.7 billion, up 11% from the 1994 first quarter
but slightly lower than in the 1994 fourth quarter.
The foreign currency translation effect of the weak U.S.
dollar in European and Asian exchange markets resulted in an
increase in revenues and expenses of approximately 2% each from the
1994 first quarter.
Income Taxes
The effective tax rate in the 1995 first quarter was 39%, the
same as in the 1994 first quarter, compared with the 29% effective
rate on current operations in the full year 1994, which included
recognition of certain deferred tax benefits. The 39% represents
a more normal rate.
Loan Loss Reserves
The loan loss reserves increased by $115 million since year-
end to $5.3 billion. The reserves totaled $4.5 billion at March
31, 1994.
Capital and Ratios
Total regulatory capital at March 31, 1995 was $26.9 billion,
estimated to be 12.0% of risk-adjusted assets, and the Tier 1
capital ratio was estimated to be 8%, compared with 7.80% at the
end of the 1994 fourth quarter. At March 31, 1994, the total
capital ratio was 11.55% and the Tier 1 ratio was 6.86%.
Accounting Change
Effective January 1, 1995, Citicorp adopted Statement of
Financial Accounting Standards No. 114, "Accounting by Creditors
for Impairment of a Loan," which establishes new rules for
calculating certain components of the allowance for credit losses.
Adoption of the new standard had no effect on the level of the
overall allowance or on operating results.
Tables detailing key financial data, an analysis of operating
margin, pretax earnings, business results and credit indicators
follow, along with financial statements. Further details
concerning the financial results will be available in May in
Citicorp's Form 10-Q.
<PAGE>
Page 5 - Citicorp First Quarter 1995 results - 4/18/95
<TABLE>
KEY RATIOS & OTHER CONSOLIDATED FINANCIAL DATA
<CAPTION>
First Quarter
1995 1994
------ ------
<S> <C> <C>
NET INCOME ($M):
Before Cumulative Effect
of Accounting Change........... $ 829 $ 609
After Cumulative Effect
of Accounting Change(A)........ 829 553
NET INCOME PER COMMON SHARE:
On Common & Common
Equivalent Shares
Before Cumulative Effect
of Accounting Change........... $ 1.71 $ 1.24
After Cumulative Effect
of Accounting Change(A)........ 1.71 1.11
Assuming Full Dilution
Before Cumulative Effect
of Accounting Change........... $ 1.53 $ 1.12
After Cumulative Effect
of Accounting Change(A)........ 1.53 1.01
COMMON STOCKHOLDERS' EQUITY
PER SHARE....................... $35.28 $27.90
CLOSING STOCK PRICE
AT QUARTER END.................. $42.63 $37.50
PROFITABILITY RATIOS (Annualized):
Return on Total Assets:..........
Before Accounting Change........ 1.25% 0.98%
After Accounting Change(A)...... 1.25 0.95
Return on Common Stockholders'
Equity:
Before Accounting Change........ 21.8% 20.1%
After Accounting Change(A)...... 21.8 19.5
Return on Total Stockholders'
Equity:
Before Accounting Change........ 18.8% 17.1%
After Accounting Change(A)...... 18.8 16.7
CAPITAL:
Tier 1 ($B)..................... $ 17.8 $ 14.0
Tier 1 & 2 ($B)(B).............. 26.9 23.5
Tier 1 Ratio(B)................. 8.0% 6.9%
Tier 1 & 2 Ratio(B)............. 12.0 11.5
Common Equity as a
% of Total Assets............. 5.2% 4.5%
Total Equity as a
% of Total Assets............. 6.8% 6.1%
DIVIDENDS DECLARED ($M):
Common........................ $ 119 $ -
Preferred..................... 92 87
(A) First quarter 1994 reflects the cumulative effect of adopting
SFAS No. 112, "Employers' Accounting for Postemployment
Benefits," as of January 1, 1994.
(B) 1995 Estimated.<PAGE>
Page 6 - Citicorp First Quarter 1995 results - 4/18/95
</TABLE>
<TABLE>
OPERATING MARGIN
($ Millions)
<CAPTION>
First Quarter
1995 1994
----- -----
<S> <C> <C>
Total Revenue ................. $4,443 $3,861
Effect of Credit Card
Securitization................ 222 268
Net Cost to Carry(A)........... - 29
Capital Building
Transactions.................. - (23)
----- -----
Adjusted Revenue............... 4,665 4,135
----- -----
Total Operating Expense........ 2,693 2,447
Net OREO Costs (B)............. - (28)
----- -----
Adjusted Operating
Expense....................... 2,693 2,419
----- -----
Operating Margin............... 1,972 1,716
Consumer Credit
Costs (C)..................... 536 614
Commercial Credit
Costs (D)..................... 2 60
----- -----
Operating Margin
Less Credit Costs............. 1,434 1,042
Additional Provision:
- -Consumer(E)................... 50 50
- -Commercial(E)................. 25 50
- -Refinancing Portfolio(F)...... - (34)
Capital Building
Transactions.................. - 23
----- -----
Income Before Taxes and
Cumulative Effect of
Accounting Change............ $1,359 $ 999
===== =====
(A) Principally the net cost to carry commercial cash-basis
loans and Other Real Estate Owned (OREO).
(B) Principally writedowns, gains and losses on sales, and
direct revenue and expense related to commercial OREO.
(C) Principally consumer net credit write-offs adjusted for
the effect of credit cards receivables securitization.
(D) Includes commercial net credit write-offs, net cost to
carry, and net OREO costs.
(E) Represents provision for credit losses in excess of net
write-offs.
(F) Amount represents the release of a portion of the commerical
allowance attributable to the cross-border refinancing
portfolio.
<PAGE>
Page 7 - Citicorp First Quarter 1995 results - 4/18/95
</TABLE>
<TABLE>
BUSINESS FOCUS
Net Income (Loss)
($ Millions)
<CAPTION>
First Quarter
1995 1994(A)
------ -----
<S> <C> <C>
Global Consumer:
North America, Europe
and Japan............... $ 274 $ 256
Emerging Markets.......... 189 170
----- -----
Total Global Consumer...... 463 426
----- -----
Global Finance:
North America, Europe
and Japan............... 129 94
Emerging Markets.......... 208 167
----- -----
Total Global Finance....... 337 261
----- -----
North America Commercial
Real Estate.............. - (76)
Cross-Border Refinancing
Portfolio................ 66 49
Corporate Items(B)......... (37) (51)
----- -----
829 609
Cumulative Effect of
Accounting Change(C)..... - (56)
----- -----
Total Citicorp............. $ 829 $ 553
===== =====
(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) First quarter 1994 reflects the cumulative effect of
adopting SFAS No. 112, "Employers' Accounting for
Postemployment Benefits," as of January 1, 1994.
</TABLE>
<PAGE>
Page 8 - Citicorp First Quarter 1995 results - 4/18/95
<TABLE>
GLOBAL CONSUMER
<CAPTION>
($ Millions) First Quarter %
1995 1994(A) Chg
----- ----- ---
<S> <C> <C> <C>
Total Revenue............ $2,702 $2,491 8
----- -----
Total Operating Expense.. 1,635 1,497 9
----- -----
Provision For
Credit Losses .......... 359 378 (5)
----- -----
Income Before Taxes...... 708 616 15
Income Taxes............. 245 190 29
----- -----
Net Income............... $ 463 $ 426 9
===== =====
Average Assets ($B)...... $ 116 $ 102 14
Return on Assets......... 1.62% 1.69% -
OTHER DATA:
North America, Europe
and Japan:
Net Income............... $ 274 $ 256 7
Average Assets($B)....... 83 75 11
Return on Assets......... 1.34% 1.38% -
Emerging Markets:
Net Income............... $ 189 $ 170 11
Average Assets($B)....... 33 27 22
Return on Assets......... 2.32% 2.55% -
Adjusted for Credit-
Related Items:
Total Revenue(B):
North America,
Europe and Japan..... $2,214 $2,148 3
Emerging Markets...... 714 613 16
----- -----
Total Global Consumer... $2,928 $2,761 6
----- -----
Other Operating
Expense(C):
North America,
Europe and Japan..... $1,240 $1,148 8
Emerging Markets...... 394 333 18
----- -----
Total Global Consumer... $1,634 $1,481 10
----- -----
Credit Costs (D):
North America,
Europe and Japan..... $ 494 $ 575 (14)
Emerging Markets...... 42 39 8
----- -----
Total Global Consumer... $ 536 $ 614 (13)
----- -----
(A) Reclassified to conform to current quarter's presentation.
(B) Adjusted principally for the effect of credit card
receivables securitization.
(C) Excludes writedowns, gains and losses on sales, and direct
expense 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 $337 million and $379 million for the first
quarter of 1995 and 1994,respectively.
</TABLE>
<PAGE>
Page 9 - Citicorp First Quarter 1995 results - 4/18/95
<TABLE>
GLOBAL FINANCE
<CAPTION>
($ Millions) First Quarter %
1995 1994(A) Chg
----- ------ ---
<S> <C> <C> <C>
Total Revenue........... $1,452 $1,203 21
----- -----
Total Operating Expense. 931 787 18
----- -----
Provision For
Credit Losses ......... 16 (34) NM
----- -----
Income Before Taxes..... 505 450 12
Income Taxes............ 168 189 (11)
----- -----
Net Income.............. $ 337 $ 261 29
===== =====
Average Assets ($B)..... $ 140 $ 133 5
Return on Assets........ 0.98% 0.80% -
OTHER DATA:
North America, Europe
and Japan:
Net Income.............. $ 129 $ 94 37
Average Assets($B)...... 96 92 4
Return on Assets........ 0.54% 0.41% -
Emerging Markets:
Net Income.............. $ 208 $ 167 25
Average Assets($B)...... 44 41 7
Return on Assets........ 1.92% 1.65% -
Adjusted for Credit-
Related Items:
Total Revenue(B):
North America,
Europe and Japan.... $ 803 $ 694 16
Emerging Markets..... 639 510 25
----- -----
Total Global Finance... $1,442 $1,204 20
----- -----
Other Operating
Expense(C):
North America,
Europe and Japan.... $ 623 $ 539 16
Emerging Markets..... 309 261 18
----- -----
Total Global Finance... $ 932 $ 800 17
----- -----
Credit Costs (D):
North America,
Europe and Japan.... $ (28) $ (47) 40
Emerging Markets..... 8 (11) NM
----- -----
Total Global Finance... $ (20) $ (58) 66
----- -----
(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 writedowns, gains and losses on sales, and
direct revenue and expense related to OREO.
(D) Includes net write-offs (recoveries), the net cost to carry
cash-basis loans and OREO, as well as writedowns,
(gains)losses on sales, and direct revenue and expense
related to OREO.
NM Not meaningful as percentage exceeds 100%.
</TABLE>
<PAGE>
Page 10 - Citicorp First Quarter 1995 results - 4/18/95
<TABLE>
NORTH AMERICA COMMERCIAL REAL ESTATE
($ Millions)
<CAPTION>
First Quarter %
1995 1994(A) Chg
----- ------ ---
<S> <C> <C> <C>
Total Revenue............. $ 53 $ 20 NM
----- -----
Total Operating Expense... 31 62 (50)
----- -----
Provision For
Credit Losses............ 16 106 (85)
----- -----
Income (Loss)
Before Taxes............. 6 (148) NM
Income Taxes (Benefit).... 6 (72) NM
----- -----
Net Loss.................. $ - $ (76) NM
===== =====
OTHER DATA:
Average Assets ($B)....... $ 6 $ 10 (40)
Adjusted for Credit-
Related Items:
Total Revenue (B)....... $ 59 $ 46 28
Total Operating
Expense (C)............ 31 37 (16)
Credit Costs (D)........ 22 119 (82)
(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 writedowns, gains and losses on sales, and
direct revenue and expense related to OREO.
(D) Includes net write-offs, the net cost to carry
cash-basis loans and OREO, as well as writedowns, (gains)
losses on sales and direct revenue and expense related
to OREO.
NM Not meaningful as percentage exceeds 100%.
</TABLE>
<PAGE>
Page 11 - Citicorp First Quarter 1995 results - 4/18/95
<TABLE>
CROSS-BORDER REFINANCING PORTFOLIO
<CAPTION>
($ Millions)
First Quarter %
1995 1994(A) Chg
----- ------ ---
<S> <C> <C> <C>
Total Revenue............. $ 80 $ 28 NM
----- -----
Total Operating Expense... 6 6 -
----- -----
Provision For
Credit Losses............ - (35) NM
----- -----
Income Before Taxes....... 74 57 30
Income Taxes.............. 8 8 -
----- -----
Net Income ............... $ 66 $ 49 35
===== =====
OTHER DATA:
Average Assets ($B)....... $ 3 $ 3 -
CORPORATE ITEMS
($ Millions)
First Quarter %
1995 1994(A) Chg
----- ------ ---
Total Revenue............. $ 156 $ 119 31
----- -----
Total Operating Expense... 90 95 (5)
----- -----
Income Before Taxes....... 66 24 NM
Income Taxes.............. 103 75 37
----- -----
Net Loss (B).............. $ (37) $ (51) 27
===== =====
(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.
NM Not meaningful as percentage exceeds 100%.
</TABLE>
<PAGE>
Page 12 - Citicorp First Quarter 1995 results - 4/18/95
<TABLE>
ASSET QUALITY
COMMERCIAL CASH-BASIS LOANS AND OREO
<CAPTION>
($ Millions) 1Q 4Q 3Q 2Q 1Q
1995 1994(A) 1994(A) 1994(A) 1994(A)
----- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Comm'l Cash-Basis Loans:
Collateral-Dependent
(At Lower of Cost or
Collateral Value)(B).. $1,329 $1,347 $1,993 $ 2,289 $ 2,466
Other.................. 654 666 736 774 897
----- ----- ----- ----- -----
Comm'l Cash-Basis Loans
(excluding Refinancing) 1,983 2,013 2,729 3,063 3,363
Cross-Border
Refinancing (C)....... 58 104 140 165 991
----- ----- ----- ----- -----
Total Commercial
Cash-Basis Loans....... 2,041 2,117 2,869 3,228 4,354
Commercial OREO(B)...... 1,014 958 1,427 1,428 1,588
----- ----- ----- ----- -----
Total Commercial
Cash-Basis Loans & OREO $3,055 $3,075 $4,296 $4,656 $5,942
===== ===== ===== ===== =====
ALLOWANCE FOR CREDIT LOSSES
1Q 4Q 3Q 2Q 1Q
1995 1994 1994 1994 1994
----- ----- ----- ----- -----
Global Consumer......... $1,897 $ 1,834 $ 1,790 $1,711 $ 1,639
Commercial (D).......... 3,373 3,321 3,270 3,201 2,595
Cross-Border Refinancing - - - - 238
----- ----- ----- ----- -----
Total................... $5,270 $5,155 $5,060 $4,912 $4,472
===== ===== ===== ===== =====
Reserve for Global Consumer
Sold Portfolios........ $ 450 $ 422 $ 467 $ 503 $ 538
ALLOWANCE AS A PERCENTAGE
OF TOTAL LOANS
1Q 4Q 3Q 2Q 1Q
1995 1994 1994 1994 1994
----- ----- ----- ----- -----
Global Consumer......... 1.93% 1.90% 1.97% 2.00% 1.98%
Commercial (D).......... 5.79 5.95 5.90 5.76 4.88
Total................... 3.37% 3.38% 3.46% 3.48% 3.26%
ADDITIONAL DATA
1Q 4Q 3Q 2Q 1Q
1995 1994(A) 1994(A) 1994(A) 1994(A)
Commercial Allowance ----- ------ ------ ------ ------
as a % of Total Commercial
Cash-Basis Loans(C)(D). 165% 157% 114% 99% 77%
Commercial Allowance
as a % of Non-Collateral-
Dependent Commercial
Cash-Basis Loans(C)(D). 474% 431% 373% 341% 289%
Commercial Renegotiated
Loans(E)............... $ 338 $ 718 $ 524 $ 417 $ 384
Consumer Cash Basis(F):
Loans................. $2,693 $2,604 $2,772 $2,846 $2,949
Assets Pending
Disposition (At lower
of cost or collateral
value)............... $ 209 $ 195 $ 163 $ 468 $ 402
Consumer OREO .......... $ 601 $ 569 $ 565 $ 693 $ 800
Refer to the Asset Quality notes on the following page.
<PAGE>
Page 13 - Citicorp First Quarter 1995 results - 4/18/95
ASSET QUALITY NOTES (continued)
(A) Reclassified to conform to current quarter's presentation.
(B) The table above presents data in a manner which
distinguishes cash-basis collateral-dependent loans from
other cash-basis loans. A cash-basis loan is defined as
collateral dependent when repayment is expected to be
provided solely by the underlying collateral and there are
no other available and reliable sources of repayment, in
which case the loans are written down to the lower of cost
or collateral value. In conjunction with the adoption of
SFAS No. 114, loans involving the in-substance repossession
of the underlying collateral have been reclassified from
Commercial OREO to Cash-Basis Collateral-Dependent Loans,
in the table above. Under SFAS 114, assets are reported as
OREO only when possession of the collateral is obtained. This
reclassification reduced Commercial OREO and increased
Commercial Cash-Basis Loans by $628 million, $874
million, $987 million, and $1.0 billion in the fourth,
third, second, and first quarters of 1994, respectively, but
had no impact on total Commercial Cash-Basis Loans and OREO.
(C) 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.
(D) Effective second quarter 1994, includes amounts related to
the Cross-Border Refinancing Portfolio.
(E) Amount at December 31, 1994 includes $385 million of loans
which were renegotiated during 1994 at a market rate of
interest and are performing, and accordingly, ceased to be
reported as Renegotiated Loans in 1995.
(F) In conjunction with the adoption of SFAS 114, the table
above reflects the reclassification of consumer loans
involving the in-substance repossession of the underlying
collateral from Consumer OREO to Assets Pending Disposition
and Cash-Basis Loans.
</TABLE>
<PAGE>
Page 14 - Citicorp First Quarter 1995 results - 4/18/95
<TABLE>
DETAILS OF CREDIT LOSS EXPERIENCE
($ Millions)
<CAPTION>
1Q 4Q 3Q 2Q 1Q
1995 1994 1994 1994 1994
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
NET WRITE-OFFS
(RECOVERIES):
Global Consumer ........ $ 309 $ 399 $ 315 $ 311 $ 328
North America Commercial
Real Estate........... 16 51 62 63 68
Global Finance.......... (9) 28 (41) 9 (46)
----- ----- ----- ----- -----
Total Commercial
(excluding)
Refinancing).......... 7 79 21 72 22
----- ----- ----- ----- -----
Cross-Border
Refinancing(A)......... (23) (20) (19) (329) (35)
----- ----- ----- ----- -----
Total................... $ 293 $ 458 $ 317 $ 54 $ 315
===== ===== ===== ===== =====
1Q 4Q 3Q 2Q 1Q
1995 1994 1994 1994 1994
----- ----- ----- ----- -----
PROVISION FOR
CREDIT LOSSES:
Global Consumer......... $ 359 $ 449 $ 365 $ 361 $ 378
North America Commercial
Real Estate........... 16 88 99 101 106
Global Finance.......... 16 41 (28) 21 (34)
----- ----- ----- ----- -----
Total Commercial
(excluding)
Refinancing).......... 32 129 71 122 72
----- ----- ----- ----- -----
Cross-Border
Refinancing............ - (20) - (11) (35)
----- ----- ----- ----- -----
Total................... $ 391 $ 558 $ 436 $ 472 $ 415
===== ===== ===== ===== =====
<PAGE>
1Q 4Q 3Q 2Q 1Q
1995 1994 1994 1994 1994
----- ----- ----- ----- -----
COMMERCIAL NET OREO
WRITEDOWNS:
North America Commercial
Real Estate............ $ 10 $ 7 $ 24 $ 12 $ 36
Global Finance.......... (1) (14) (9) (25) (6)
----- ----- ----- ----- -----
Total................... $ 9 $ (7) $ 15 $ (13) $ 30
===== ===== ===== ===== =====
(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>
Page 15 - Citicorp First Quarter 1995 results - 4/18/95
<TABLE>
CONSOLIDATED STATEMENT OF INCOME CITICORP AND Subsidiaries
(In Millions of Dollars,
Except Per Share Amounts)
<CAPTION>
First Quarter %
1995 1994 Chg
------ ----- ---
<S> <C> <C> <C>
Interest Revenue......... $ 5,597 $6,458 (13)
Interest Expense......... 3,272 4,373 (25)
------ -----
Net Interest Revenue...... 2,325 2,085 12
------ -----
Fees & Commissions....... 1,262 1,259 -
Trading Account.......... 39 5 NM
Foreign Exchange......... 305 66 NM
Securities Transactions.. 26 50 (48)
Other Revenue............ 486 396 23
------ -----
Total Fees, Commissions
and Other Revenue........ 2,118 1,776 19
------ -----
TOTAL REVENUE............. 4,443 3,861 15
------ -----
PROVISION FOR
CREDIT LOSSES............ 391 415 (6)
------ -----
Operating Expense:
Salaries................ 1,080 954 13
Employee Benefits....... 298 283 5
Net Premises &
Equipment Expense...... 410 390 5
Other Expense........... 905 820 10
------ -----
TOTAL OPERATING EXPENSE... 2,693 2,447 10
------ -----
INCOME BEFORE TAXES
AND CUMULATIVE EFFECT
OF ACCOUNTING CHANGE..... 1,359 999 36
Income Taxes............. 530 390 36
------ -----
INCOME BEFORE CUMULATIVE
EFFECT OF ACCTG CHANGE... 829 609 36
Cumulative Effect of
Accounting Change(A)..... - (56) NM
------ -----
NET INCOME................ $ 829 $ 553 50
====== =====
INCOME APPLICABLE
TO COMMON STOCK.......... $ 735 $ 466 58
====== =====
EARNINGS PER SHARE :
On Common & Common Equiv. Shs
Income Before Cumulative
Effect of Acctg Chg..... $ 1.71 $ 1.24
Income After Cumulative
Effect of Acctg Chg..... $ 1.71 $ 1.11
Assuming Full Dilution
Income Before Cumulative
Effect of Acctg Chg..... $ 1.53 $ 1.12
Income After Cumulative
Effect of Acctg Chg..... $ 1.53 $ 1.01
(A)First quarter 1994 reflects the cumulative effect of adopting
SFAS No. 112, "Employers' Accounting for Postemployment
Benefits," as of January 1, 1994.
NM Not meaningful as percentage exceeds 100%.
</TABLE>
<PAGE>
Page 16 - Citicorp First Quarter 1995 results - 4/18/95
<TABLE>
CONSOLIDATED BALANCE SHEET CITICORP and Subsidiaries
(In Millions of Dollars)
<CAPTION>
Mar. 31 Dec. 31 %
1995 1994 Chg
------- ------- ---
<S> <C> <C> <C>
ASSETS
Cash and Due from Banks......... $ 6,575 $ 6,470 2
Deposits at Interest with Banks. 7,787 6,862 13
Securities:
Held to Maturity............... 5,132 5,092 1
Available for Sale............. 13,099 13,602 (4)
Venture Capital................ 1,669 2,009 (17)
Trading Account Assets.......... 51,771 38,875 33
Federal Funds Sold &
Securities Purchased
Under Resale Agreements........ 8,650 6,995 24
Loans, Net of Unearned Income
Consumer....................... 98,082 96,600 2
Commercial..................... 58,292 55,820 4
------- -------
Total Loans, Net............ 156,374 152,420 3
Allowance for Credit Losses..... (5,270) (5,155) (2)
Customers' Acceptance Liability. 1,558 1,420 10
Premises & Equipment, Net....... 4,294 4,062 6
Interest & Fees Receivable...... 2,740 2,654 3
Other Assets.................... 14,634 15,183 (4)
------- -------
Total........................... $269,013 $250,489 7
======= =======
LIABILITIES
Non-Int. Deposits (in the U.S.). $ 12,292 $ 13,648 (10)
Int. Deposits (in the U.S.)..... 35,891 35,699 1
Non-Int. Deposits (Outside the
U.S.).......................... 7,788 7,212 8
Int. Deposits(Outside the U.S.). 109,141 99,167 10
------- -------
Total Deposits.............. 165,112 155,726 6
Trading Account Liabilities..... 33,519 22,382 50
Purchased Funds &
Other Borrowings............... 19,062 20,907 (9)
Acceptances Outstanding......... 1,568 1,440 9
Accrued Taxes & Other Expenses.. 5,436 5,493 (1)
Other Liabilities............... 8,460 8,878 (5)
Long-Term Debt.................. 16,125 16,497 (2)
Subordinated Capital Notes...... 1,370 1,397 (2)
STOCKHOLDERS' EQUITY
Preferred Stock
(Without Par Value)............ 4,337 4,187 4
Common Stock (Par value $1.00).. 423 421 -
Surplus......................... 4,287 4,194 2
Retained Earnings .............. 10,179 9,561 6
Net Unrealized (Losses) Gains...
Securities Available for Sale.. (58) 278 NM
Foreign Currency Translation.... (404) (471) 14
Common Stock in Treasury,
at Cost........................ (403) (401) -
------- -------
Total Stockholders' Equity.. 18,361 17,769 3
------- -------
Total........................... $269,013 $250,489 7
======= =======
NM Not meaningful as percentage exceeds 100%.
</TABLE>
<PAGE>
Page 17 - Citicorp First Quarter 1995 results - 4/18/95
<TABLE>
ADDITIONAL FINANCIAL DATA
<CAPTION>
1Q 4Q 3Q 2Q 1Q
1995 1994 1994 1994 1994
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
NET INTEREST REVENUE(A)
Net Interest Revenue($M) $ 2,333 $ 2,328 $ 2,352 $ 2,170 $ 2,087
Net Interest Margin..... 4.23% 4.21% 4.37% 4.15% 4.01%
ADJUSTED TO EXCLUDE
THE EFFECT OF CREDIT
CARD SECURITIZATION:
Net Interest Revenue($M) $ 2,801 $ 2,798 $ 2,862 $ 2,710 $ 2,616
Net Interest Margin..... 4.61% 4.61% 4.80% 4.64% 4.52%
CONSOLIDATED AVERAGE
BALANCES
1Q 4Q 3Q 2Q 1Q
1995 1994 1994 1994 1994
------ ------ ------ ------ ------
Loans ($B):
Consumer............... $ 96 $ 93 $ 87 $ 84 $ 84
Commercial............. 56 56 56 55 54
------ ------ ------ ------ ------
Total Average Loans..... $ 152 $ 149 $ 143 $ 139 $ 138
====== ====== ====== ====== ======
Total Average
Assets($B)............. $ 269 $ 267 $ 265 $ 258 $ 253
Avg. Interest Earning
Assets($B)............. $ 224 $ 219 $ 214 $ 210 $ 211
Common Stockholders'
Equity ($M)............ $13,653 $13,003 $12,023 $11,049 $10,562
Preferred Equity ($M)... 4,262 4,187 4,116 3,975 3,887
------ ------ ------ ------ ------
Total Average
Stockholders'
Equity ($M)............ $17,915 $17,190 $16,139 $15,024 $14,449
====== ====== ====== ====== ======
(A) Taxable Equivalent Basis.
</TABLE>
<PAGE>
Page 18 - Citicorp First Quarter 1995 results - 4/18/95
<TABLE>
EARNINGS PER SHARE DATA(A)
(Before Cumulative Effect
of Accounting Change in 1994)
<CAPTION>
First Quarter
1995 1994
------- -------
<S> <C> <C>
On Common and Common
Equivalent Shares:
Earnings($ Millions).. $ 759 $ 546
Shares (in thousands). 444,489 441,894
Earnings Per Share.... $ 1.71 $ 1.24
Assuming Full Dilution:
Earnings($ Millions).. $ 793 $ 580
Shares (in thousands). 517,928 517,717
Earnings Per Share.... $ 1.53 $ 1.12
COMMON SHARES OUTSTANDING
(In Thousands)
End-Of-Period.......... 397,468 389,280
(A) For earnings per share on common and common equivalent
shares, dividends on Conversion Preferred Stock, Series 15
($24 million in the first quarter of 1995 and 1994) are
added back to income applicable to common stock, and the
number of shares issuable on conversion (38 million shares
in the first quarter of 1995 and 43 million shares in
the first quarter of 1994) 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 Preferred Stock, Series 15 are 38 million shares
in the first quarter of 1995 and 46 million shares in the
first quarter of 1994. Additionally, dividends on
Convertible Preferred Stock, Series 12 and 13 ($34 million
in the first quarter of 1995 and 1994) are also added back
to income applicable to common stock, and the shares
issuable on conversion (73 million shares) are added to
shares outstanding. The number of common equivalent and
book value shares are calculated on a fully diluted basis
as well.
</TABLE>
<PAGE>
Page 19 - Citicorp First Quarter 1995 results - 4/18/95
<TABLE>
OTHER REVENUE DATA
<CAPTION>
First Quarter
1995 1994(A)
------ ------
<S> <C> <C>
OTHER REVENUE
($ Millions)
Securitized Credit
Card Receivables............ $ 216 $ 208
Venture Capital ............. 85 79
Affiliate Earnings........... 55 65
Mortgage Pass-Through
Securitization Activity..... 1 (38)
Foreign Currency Translation
Gains....................... 3 -
Net Asset Gains and
Other Items................. 126 82
----- -----
Total...................... $ 486 $ 396
===== =====
(A) Reclassified to conform to current quarter's presentation.
</TABLE>
<PAGE>
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: April 24, 1995
<TABLE>
<CAPTION>
CITICORP AND SUBSIDIARIES
CALCULATION OF RATIO OF INCOME TO FIXED CHARGES
(In Millions)
EXCLUDING INTEREST ON DEPOSITS: THREE MONTHS
ENDED
MAR 31
1994 1993 1992 1991 1990 1995 1994
------ ------- ------- ------- ------- ------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
FIXED CHARGES:
INTEREST EXPENSE (OTHER THAN
INTEREST ON DEPOSITS) 5,906 6,324 5,826 5,973 9,414 1,016 1,903
INTEREST FACTOR IN RENT EXPENSE 143 147 161 171 173 35 37
------- ------- ------- ------- ------- ------- ------
TOTAL FIXED CHARGES 6,049 6,471 5,988 6,144 9,587 1,051 1,940
INCOME:
NET INCOME(LOSS) 3,422(A) 1,919(B) 722 (914)(C) 318(D) 829 609(A)
INCOME TAXES 1,189 941 696 677 508 530 390
FIXED CHARGES 6,049 6,471 5,988 6,144 9,587 1,051 1,940
------- ------- ------- ------- -------- ------- -------
TOTAL INCOME 10,660 9,331 7,406 5,907 10,413 2,410 2,939
======= ======= ======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS 1.76 1.44 1.24 0.96(E) 1.09 2.29 1.51
======= ======= ======= ======= ======= ======= =======
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE 14,902 16,121 16,327 17,089 23,798 3,272 4,373
INTEREST FACTOR IN RENT EXPENSE 143 147 162 171 173 35 37
------- ------- ------- ------- ------- ------- -------
TOTAL FIXED CHARGES 15,045 16,268 16,489 17,260 23,971 3,307 4,410
INCOME:
NET INCOME(LOSS) 3,422(A) 1,919(B) 722 (914)(C) 318(D) 829 609(A)
INCOME TAXES 1,189 941 696 677 508 530 390
FIXED CHARGES 15,045 16,268 16,489 17,260 23,971 3,307 4,410
------- ------- ------- ------- ------- ------- -------
TOTAL INCOME 19,656 19,128 17,907 17,023 24,797 4,666 5,409
======= ======= ======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS 1.31 1.18 1.09 0.99(E) 1.03 1.41 1.23
======= ======= ======= ======= ======= ======= ======
(A) NET INCOME FOR THE THREE MONTHS ENDED MARCH 31,1994 AND THE FULL YEAR 1994 EXCLUDES THE CUMULATIVE EFFECT
OF ADOPTING STATEMENT OF FINANCIAL ACCOUNTING 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 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)
THREE MONTHS
EXCLUDING INTEREST ON DEPOSITS: ENDED
MAR 31
1994 1993 1992 1991 1990 1995 1994
------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
FIXED CHARGES:
INTEREST EXPENSE (OTHER THAN
INTEREST ON DEPOSITS) 5,906 6,324 5,826 5,973 9,414 1,016 1,903
INTEREST FACTOR IN RENT EXPENSE 143 147 162 171 173 35 37
DIVIDENDS - PREFERRED STOCK 505 465 416 271(A) 361 151 143
------- ------- ------- ------- ------- ------- -------
TOTAL FIXED CHARGES 6,554 6,936 6,404 6,415 9,948 1,202 2,083
INCOME:
NET INCOME(LOSS) 3,442(B) 1,919(C) 722 (914)(D) 318(E) 829 609(B)
INCOME TAXES 1,189 941 696 677 508 530 390
FIXED CHARGES (EXCLUDING
PREFERRED STOCK DIVIDENDS) 6,049 6,471 5,988 6,144 9,587 1,051 1,940
------- ------- ------- ------- ------- ------- -------
TOTAL INCOME 10,660 9,331 7,406 5,907 10,413 2,410 2,939
======= ======= ======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS 1.63 1.35 1.16 0.92(F) 1.05 2.00 1.41
======= ======= ======= ======= ======= ======= =======
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE 14,902 16,121 16,327 17,089 23,798 3,272 4,373
INTEREST FACTOR IN RENT EXPENSE 143 147 162 171 173 35 37
DIVIDENDS - PREFERRED STOCK 505 465 416 271(A) 361 151 143
------- ------- ------- ------- ------- ------ ------
TOTAL FIXED CHARGES 15,550 16,733 16,905 17,531 24,332 3,458 4,553
INCOME:
NET INCOME(LOSS) 3,422(B) 1,919(C) 722 (914)(D) 318(E) 829 609(B)
INCOME TAXES 1,189 941 696 677 508 530 390
FIXED CHARGES (EXCLUDING
PREFERRED STOCK DIVIDENDS) 15,045 16,268 16,489 17,260 23,971 3,307 4,410
------- ------- ------- ------- ------- ------- ------
TOTAL INCOME 19,656 19,128 17,907 17,023 24,797 4,666 5,409
======= ======= ======= ======= ======= ======= ======
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS 1.26 1.14 1.06 0.97(F) 1.02 1.35 1.19
======= ======= ======= ======= ====== ======= ======
(A) CALCULATED ON A BASIS OF AN ASSUMED TAX RATE OF OF 34%.
(B) NET INCOME FOR THE THREE MONTHS ENDED MARCH 31, 1994 AND THE FULL YEAR 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 OF $508 MILLION.
</TABLE>
