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 16, 1996
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
CITICORP REPORTS NET INCOME OF $914 MILLION, UP 10%;
EARNINGS PER COMMON SHARE INCREASE 14% TO $1.75
CITICORP [NYSE SYMBOL: CCI]
FIRST QUARTER 1996 1995 CHANGE
- ------------- ---- ---- ------
($ IN MILLIONS, EXCEPT EPS)
REVENUE (ADJUSTED) $5,117 $4,665 10%
NET INCOME 914 829 10
EARNINGS PER SHARE (FULLY DILUTED) $ 1.75 $ 1.53 14
RETURN ON COMMON EQUITY 20.2% 21.8%
RETURN ON TOTAL ASSETS 1.37% 1.25%
On April 16,1996, Citicorp announced its 1996 first quarter results: Net
income of $914 million was up 10% from the same 1995 quarter, on revenue
(adjusted for card securitizations) of $5,117 million, also up 10%. Earnings per
share were $1.75, up 14%. Return on common equity was 20.2%. The company bought
back 9.6 million common shares during the quarter for $721 million, under its
announced stock repurchase plan.
John S. Reed, Citicorp's Chairman, said: "It was a solid quarter,
continuing very much on our plan."
Citicorp's consumer businesses earned $513 million on adjusted revenue of
$3,253 million, gains of 11% and 10%, respectively. Its (corporate) banking
business earned $469 million, up 18%, on revenue growth of 4% to $1,616 million.
The principal strength in the banking business was in the emerging markets,
offsetting soft trading and venture capital results in North America, Europe and
Japan.
Tier 1 capital was reported at $19 billion, total capital at $28 billion,
and the Tier 1 and total capital ratios at 8.4% and 12.3%, respectively. The
ratio of common equity to total assets was 6.7%. The company continued to build
its reserves for possible credit losses.
<PAGE>
Page 2 - Citicorp 1996 First Quarter Results
Details follow:
CONSUMER BUSINESSES CONTINUE GLOBAL GROWTH
CONSUMER BUSINESSES
FIRST QUARTER 1996 1995 CHANGE
- ------------- ---- ---- ------
($ IN MILLIONS)
ADJUSTED REVENUE $3,253 $2,946 10%
ADJUSTED OPERATING EXPENSE 1,741 1,651 5
OPERATING MARGIN 1,512 1,295 17
CREDIT COSTS 706 536 32
NET INCOME 513 463 11
RETURN ON ASSETS 1.65% 1.62%
Net income from worldwide Citibanking, Cards and the Private Bank accounted
for 52% of core business earnings. Net income in the 1996 first quarter of $513
million was up $50 million, or 11%, from the first quarter of 1995, with the
improvement led by Citibanking and private banking, while Cards earnings were
essentially unchanged.
Geographically, net income in the emerging markets increased $31 million,
or 16%, from the year-ago quarter, while net income in the developed markets
improved $19 million, or 7%.
Consumer credit costs were $706 million, up from $688 million in the
preceding quarter and $536 million in the 1995 first quarter, chiefly because of
a rise in U.S. bankcard losses.
CITIBANKING
Citibanking activities in the first quarter contributed $183 million of net
income, up $32 million, or 21%, from the 1995 first quarter. The improvement was
led by business expansion in Asia Pacific, as well as results across the
developed markets. Revenue, up 9%, was led by double-digit growth in the
emerging markets, particularly in Asia Pacific. Expense was up 7%, reflecting
business activity in the emerging markets and investment spending associated
with the continued roll-out of the "Citibanking" branding strategy. Credit costs
of $158 million were up 6%; and the credit loss ratio for the first quarter was
0.97%, compared with 1.20% in the fourth quarter and 0.99% in the first quarter
of last year. Managed loans delinquent 90 days or more were essentially
unchanged from both quarters.
<PAGE>
Page 3 - Citicorp 1996 First Quarter Results
CARDS
Cards worldwide net income of $265 million was essentially unchanged from the
1995 first quarter. Net income from card business in the emerging markets grew
to 30% of the total from 24% in the year-ago quarter, reflecting significant
growth in Asia Pacific. In the U.S. bankcards business, revenue was up 11% from
the 1995 first quarter on higher loan volumes. Cards continued to build reserves
for possible credit losses, with provisions of $49 million above net write-offs
in the 1996 first quarter and $48 million in the same 1995 quarter.
Credit costs for worldwide cards were $547 million, up $170 million from
the 1995 first quarter and up $51 million from the 1995 fourth quarter (adjusted
for the fourth quarter sale of certain bankrupt accounts). Consistent with broad
industry trends, net credit losses in the managed U.S. bankcards portfolio
increased to $467 million, up $135 million from the 1995 first quarter and an
adjusted $53 million from the fourth quarter. The loss ratio in that portfolio
rose to 4.38% in the first quarter from an adjusted 3.89% in the 1995 fourth
quarter; and loans that were delinquent 90 days or more totaled $759 million, or
1.80% of that portfolio, up from $732 million, or 1.66%, at December 31, 1995.
The number of cards in force worldwide (including affiliates) exceeded 58
million at the end of the quarter. Charge volumes in the U.S. bankcards business
increased $2.8 billion, or 15%, from the 1995 first quarter, while charge
volumes on Citicorp-issued cards in Asia Pacific jumped 28%. Managed card
receivables in the U.S. bankcards business grew from the year-ago quarter by
$3.8 billion, or 10%, to $42.6 billion and grew in Asia Pacific by 38%.
PRIVATE BANK
Private banking net income of $65 million was up $16 million, or 33%, from the
1995 first quarter, principally reflecting higher spreads and credit volumes.
Revenue improved 10% from the year-ago quarter, while expense growth was only
6%, resulting in a margin increase of 18%. Credit costs of $1 million in the
quarter compared with $10 million in the year-ago period. Client assets under
management rose 12% from a year earlier to $89.9 billion.
<PAGE>
Page 4 - Citicorp 1996 First Quarter Results
BANKING FOR GLOBAL AND EMERGING MARKETS CORPORATE CUSTOMERS
(CORPORATE) BANKING
FIRST QUARTER 1996 1995 CHANGE
- ------------- ---- ---- ------
($ IN MILLIONS)
ADJUSTED REVENUE $1,616 $1,557 4%
ADJUSTED OPERATING EXPENSE 1,010 955 6
OPERATING MARGIN 606 602 1
CREDIT COSTS 15 2 NM
NET INCOME 469 397 18
RETURN ON ASSETS 1.36% 1.08%
Net income from global corporate banking activities of $469 million in the
first quarter was up 18% from the 1995 first quarter.
Trading-related revenue of $342 million was essentially unchanged from the
year-earlier quarter, as lower results in Global Relationship Banking were
offset by gains in the emerging markets.
EMERGING MARKETS
Net income from (corporate) banking in the emerging markets totaled $393 million
in the quarter, up $123 million from the first quarter of 1995, as strong growth
in revenue and operating margin was coupled with lower local effective tax
rates.
Revenue growth of $154 million, or 22%, compared with the first quarter of
1995, reflected broad business growth in Latin America and Asia Pacific, and
across trading- related activities, loan products and transaction services.
About one-fifth of the revenue in the emerging markets was attributable to
business for multinational companies managed with Global Relationship Banking,
with that revenue having grown at a double-digit rate from the year-ago quarter.
Revenue in the 1996 quarter included $109 million related to net asset gains and
securities transactions, compared with $90 million in the 1995 first quarter.
Such revenue included pretax gains of $52 million in the 1996 quarter from the
sale of Brazil interest bonds, while 1995 first quarter revenue included pretax
gains of $59 million from the sale of a real estate asset.
<PAGE>
Page 5 - Citicorp 1996 First Quarter Results
Expenses rose 18% from the first quarter of 1995, primarily because of
higher business volumes and investment spending to build the franchise. Since
the first quarter of 1995, banking operations were initiated in Slovakia,
Romania and Israel. In addition, operations were expanded by opening additional
offices or converting representative offices to branches or subsidiaries in
Tanzania, Russia, China, Bangladesh, and South Africa, and a brokerage operation
was added to the bank's operations in Turkey.
Credit costs related to corporate business in the emerging markets were $10
million, compared with no costs in the fourth quarter and $8 million in the
first quarter of the prior year.
The results include the Cross-Border Refinancing Portfolio, which
previously was reported separately. Such activities earned $89 million, up from
$65 million in the 1995 first quarter, with average assets unchanged at $3
billion. Progress was made in 1996 toward commercial bank agreements with Panama
and Peru.
GLOBAL RELATIONSHIP BANKING
Net income from Global Relationship Banking business in North America, Europe
and Japan totaled $76 million, down $51 million from the 1995 first quarter.
Average assets declined by $17 billion, primarily reflecting a reduction of
trading assets and the effects of repositioning the Global Relationship Banking
business since the second quarter of 1995.
Revenue of $749 million reflected stable base business revenue and a
reduction of $103 million in trading-related and venture capital revenue. (As
noted, approximately 20% of the emerging markets revenue is estimated to come
from GRB customers.) Expenses were essentially unchanged from the 1995 first
quarter, with growth related to areas of increased business volumes offset
primarily by lower incentive compensation.
Credit costs were $5 million, compared with a net credit of $13 million in
the 1995 fourth quarter and a credit of $6 million in the first quarter.
The results include North America Commercial Real Estate, which previously
was reported separately. Its average assets of $4 billion earned $4 million in
the 1996 quarter, compared with a breakeven quarter a year ago.
<PAGE>
Page 6 - Citicorp 1996 First Quarter Results
OTHER ITEMS
Citicorp's effective tax rate was 38% in the quarter, compared with 39% in
the 1995 first quarter; the 1995 full-year effective tax rate was 38%.
In the 1996 first quarter, the company issued 59 million shares of common
stock in the redemption of all of its remaining convertible preferred stock.
Average common shares outstanding for the purpose of computing fully
diluted earnings per share in the 1996 first quarter were 500.8 million and
505.7 million in the 1995 fourth quarter, principally reflecting the net effect
of the share repurchase program and employee stock plans.
With the repurchase of 9.6 million shares of common stock in the quarter at
a total cost of $721 million, the number of shares acquired since June 20, 1995,
when the Board of Directors authorized the stock repurchase program, totaled
32.6 million common shares at a cost of $2.2 billion. As expanded in January
1996, the program is authorized to make total purchases for up to $4.5 billion
through January 1998.
In summary, against its Business Directions performance targets, Citicorp
in the 1996 first quarter achieved a 10% earnings gain, a return on common
equity of 20.2% (18.6% on total equity), a ratio of incremental revenue to
expense of 2.5 to 1, and generation of an estimated $700 million of free
capital.
- --------------------------------------------------------------------------------
Tables detailing key financial data, an analysis of operating margin, pretax
earnings, business results and credit indicators follow, along with financial
statements. Further details concerning the financial results will be available
in May in Citicorp's Form 10-Q.
<PAGE>
Page 7 - Citicorp First Quarter 1996 results - 4/16/96
KEY RATIOS & OTHER CONSOLIDATED FINANCIAL DATA
First Quarter
1996 1995
---- ----
NET INCOME ($M)............. $ 914 $ 829
NET INCOME PER COMMON SHARE:
On Common & Common
Equivalent Shares.......... $ 1.82 $ 1.71
Assuming Full Dilution...... $ 1.75 $ 1.53
PER SHARE DATA:
COMMON STOCKHOLDERS' EQUITY. $36.79 $35.28
CLOSING STOCK PRICE
AT QUARTER END............. $80.00 $42.63
PROFITABILITY RATIOS (Annualized):
Return on Total Assets...... 1.37% 1.25%
Return on Common
Stockholders' Equity....... 20.2% 21.8%
Return on Total
Stockholders' Equity....... 18.6% 18.8%
CAPITAL:
Tier 1 ($B)................ $ 19.0 $ 17.8
Tier 1 & 2 ($B)(A)......... 28.0 26.9
Tier 1 Ratio(A)............ 8.4% 8.0%
Tier 1 & 2 Ratio(A)........ 12.3 12.1
Common Equity as a
% of Total Assets........ 6.7% 5.2%
Total Equity as a
% of Total Assets........ 7.5% 6.8%
DIVIDENDS DECLARED ($M):
Common................... $ 210 $ 119
Preferred................ 47 92
- ----------
(A) 1996 Estimated.
<PAGE>
Page 8 - Citicorp First Quarter 1996 results - 4/16/96
OPERATING MARGIN
($ Millions)
First Quarter
1996 1995
------ ------
Total Revenue .............. $ 4,828 $ 4,443
Effect of Credit Card
Securitization............. 294 222
Net Cost to Carry(A)........ (5) -
------ ------
Adjusted Revenue............ 5,117 4,665
------ ------
Total Operating Expense..... 2,860 2,693
Net OREO Benefits(B)......... 12 -
------ ------
Adjusted Operating
Expense.................... 2,872 2,693
------ ------
Operating Margin............ 2,245 1,972
Consumer Credit
Costs(C)................... 706 536
Commercial Credit
Costs(D)................... 15 2
------ ------
Operating Margin
Less Credit Costs.......... 1,524 1,434
Additional Provision(E)..... 50 75
------ ------
Income Before Taxes ........ $ 1,474 $ 1,359
====== ======
- ----------
(A) Principally the net cost to carry commercial cash-basis loans and Other Real
Estate Owned ("OREO").
(B) Principally gains and losses on sales, direct revenue and expense, and
writedowns on commercial OREO.
(C) Principally consumer net credit write-offs adjusted for the effect of credit
card securitization.
(D) Includes commercial net credit write-offs, net cost to carry, and net OREO
benefits (costs).
(E) Primarily provision for credit losses in excess of net write-offs.
<PAGE>
Page 9 - Citicorp First Quarter 1996 results - 4/16/96
BUSINESS FOCUS
Net Income (Loss)
($ Millions)
First Quarter
1996 1995(A)
------ ------
Consumer................... $ 513 $ 463
(Corporate)Banking(B)...... 469 397
----- -----
Core Businesses......... 982 860
Corporate Items(C)......... (68) (31)
----- -----
Total Citicorp............. $ 914 $ 829
===== =====
SUPPLEMENTAL INFORMATION:
CONSUMER:
Citibanking............. $ 183 $ 151
Cards................... 265 263
Private Bank............ 65 49
----- -----
Total................... $ 513 $ 463
===== =====
Developed Markets....... $ 289 $ 270
Emerging Markets........ 224 193
----- -----
Total................... $ 513 $ 463
===== =====
(CORPORATE)BANKING:
Global Relationship
Banking(B)............. $ 76 $ 127
Emerging Markets(B)..... 393 270
----- -----
Total................... $ 469 $ 397
===== =====
- ----------
(A) Reclassified to conform to current quarter's presentation.
(B) (Corporate) Banking activities include the results of the North America
Commercial Real Estate and the Cross Border Refinancing portfolios in the
Developed and Emerging Markets, respectively.
(C) See Corporate Items section for details.
<PAGE>
Page 10 - Citicorp First Quarter 1996 results - 4/16/96
CONSUMER
($ Millions)
First Quarter %
1996 1995(A) Chg
------ ------ ---
Total Revenue.......... $ 2,960 $ 2,720 9
Effect of Credit Card
Securitization........ 294 222 32
Net Cost to Carry...... (1) 4 NM
------ ------
Adjusted Revenue....... 3,253 2,946 10
------ ------
Total Operating
Expense............... 1,741 1,652 5
Net OREO Costs......... - (1) NM
------ ------
Adjusted Operating
Expense............... 1,741 1,651 5
------ ------
Operating Margin....... 1,512 1,295 17
------ ------
Net Write-offs......... 413 309 34
Effect of Credit Card
Securitization........ 294 222 32
Net Cost to Carry and
Net OREO Costs........ (1) 5 NM
------ ------
Credit Costs........... 706 536 32
------ ------
Operating Margin Less
Credit Costs.......... 806 759 6
------ ------
Additional Provision... 50 50 -
------ ------
Income Before Taxes.... 756 709 7
Income Taxes........... 243 246 (1)
------ ------
Net Income............. $ 513 $ 463 11
====== ======
Average Assets ($B).... $ 125 $ 116 8
Return on Assets....... 1.65% 1.62% -
- ----------
(A) Reclassified to conform to current quarter's presentation.
NM Not meaningful,as percentage exceeds 100%.
<PAGE>
Page 11 - Citicorp First Quarter 1996 results - 4/16/96
CONSUMER(SUPPLEMENTAL DATA)
($ Millions)
First Quarter %
1996 1995 Chg
------ ------ ---
CITIBANKING:
Revenue.............. $1,404 $1,288 9
Operating Expense.... 967 900 7
----- -----
Operating Margin..... 437 388 13
Credit Costs ........ 158 149 6
----- -----
Operating Margin
Less Credit Costs... 279 239 17
Additional Provision. 1 2 (50)
----- -----
Income Before Taxes.. 278 237 17
Income Taxes......... 95 86 10
----- -----
Net Income........... $ 183 $ 151 21
===== =====
Average Assets($B)... 81 77 5
Return on Assets..... 0.91% 0.80% -
CARDS(A):
Revenue.............. $1,603 $1,434 12
Operating Expense.... 612 598 2
----- -----
Operating Margin..... 991 836 19
Credit Costs(B)...... 547 377 45
----- -----
Operating Margin
Less Credit Costs... 444 459 (3)
Additional Provision. 49 48 2
----- -----
Income Before Taxes.. 395 411 (4)
Income Taxes......... 130 148 (12)
----- -----
Net Income........... $ 265 $ 263 1
===== =====
Average Assets($B)... 28 24 17
Return on Assets..... 3.81% 4.44% -
PRIVATE BANK(C):
Revenue.............. $ 246 $ 224 10
Operating Expense.... 162 153 6
----- -----
Operating Margin..... 84 71 18
Credit Costs ........ 1 10 (90)
----- -----
Operating Margin
Less Credit Costs... 83 61 36
Additional Provision. - - -
----- -----
Income Before Taxes.. 83 61 36
Income Taxes......... 18 12 50
----- -----
Net Income........... $ 65 $ 49 33
===== =====
Average Assets($B)... 16 15 7
Return on Assets..... 1.63% 1.32% -
- ----------
(A) Revenue and Credit Costs adjusted for the effect of credit card
securitization.
(B) Includes U.S. Bankcards net credit losses for both held and securitized
receivables of $467 million and $332 million for the first quarter of 1996
and 1995, respectively.
(C) Revenue, Operating Expense, Operating Margin and Credit Costs adjusted for
credit-related items.
<PAGE>
Page 12 - Citicorp First Quarter 1996 results - 4/16/96
CONSUMER(SUPPLEMENTAL DATA)(A)
($ Millions)
First Quarter %
1996 1995(B) Chg
------ ------ ---
DEVELOPED MARKETS:
Revenue.............. $2,390 $2,209 8
Operating Expense.... 1,265 1,240 2
----- -----
Operating Margin..... 1,125 969 16
Credit Costs ........ 613 494 24
----- -----
Operating Margin
Less Credit Costs... 512 475 8
Additional Provision. 48 46 4
----- -----
Income Before Taxes.. 464 429 8
Income Taxes......... 175 159 10
----- -----
Net Income........... $ 289 $ 270 7
===== =====
Average Assets($B)... 88 83 6
Return on Assets..... 1.32% 1.32% -
EMERGING MARKETS:
Revenue.............. $ 863 $ 737 17
Operating Expense.... 476 411 16
----- -----
Operating Margin..... 387 326 19
Credit Costs ........ 93 42 NM
----- -----
Operating Margin
Less Credit Costs... 294 284 4
Additional Provision. 2 4 (50)
----- -----
Income Before Taxes.. 292 280 4
Income Taxes......... 68 87 (22)
----- -----
Net Income........... $ 224 $ 193 16
===== =====
Average Assets($B)... 37 33 12
Return on Assets..... 2.43% 2.37% -
- ----------
(A) Revenue, Operating Expense, Operating Margin and Credit Costs adjusted for
credit-related items. Additionally, Revenue and Credit Costs in the
Developed Markets are adjusted for the effect of credit card
securitization.
(B) Reclassified to conform to current quarter's presentation.
NM Not meaningful, as percentage exceeds 100%.
<PAGE>
Page 13 - Citicorp First Quarter 1996 results - 4/16/96
(CORPORATE)BANKING
($ Millions)
First Quarter %
1996 1995 Chg
------ ------ ---
Total Revenue.......... $ 1,620 $ 1,561 4
Net Cost to Carry...... (4) (4) -
------ ------
Adjusted Revenue....... 1,616 1,557 4
------ ------
Total Operating
Expense............... 998 954 5
Net OREO Benefits...... 12 1 NM
------ ------
Adjusted Operating
Expense............... 1,010 955 6
------ ------
Operating Margin....... 606 602 1
------ ------
Net Write-offs......... 31 7 NM
Net Cost to Carry and
Net OREO Benefits..... (16) (5) NM
------ ------
Credit Costs........... 15 2 NM
------ ------
Operating Margin Less
Credit Costs.......... 591 600 (2)
------ ------
Additional Provision... - 25 NM
------ ------
Income Before Taxes.... 591 575 3
Income Taxes........... 122 178 (31)
------ ------
Net Income............. $ 469 $ 397 18
====== ======
Average Assets ($B).... $ 139 $ 149 (7)
Return on Assets....... 1.36% 1.08% -
- ----------
NM Not meaningful, as percentage exceeds 100%.
<PAGE>
Page 14 - Citicorp First Quarter 1996 results - 4/16/96
(CORPORATE)BANKING (SUPPLEMENTAL DATA)(A)
($ Millions)
First Quarter %
1996 1995 Chg
------ ------ ---
GLOBAL RELATIONSHIP BANKING:
Revenue.............. $ 749 $ 844 (11)
Operating Expense.... 639 640 -
----- -----
Operating Margin..... 110 204 (46)
Credit Costs ........ 5 (6) NM
----- -----
Operating Margin
Less Credit Costs... 105 210 (50)
Additional Provision. - 25 NM
----- -----
Income Before Taxes.. 105 185 (43)
Income Taxes......... 29 58 (50)
----- -----
Net Income........... $ 76 $ 127 (40)
===== =====
Average Assets($B)... 84 101 (17)
Return on Assets..... 0.36% 0.51% -
EMERGING MARKETS:
Revenue.............. $ 867 $ 713 22
Operating Expense.... 371 315 18
----- -----
Operating Margin..... 496 398 25
Credit Costs ........ 10 8 25
----- -----
Operating Margin
Less Credit Costs... 486 390 25
----- -----
Additional Provision. - - NM
----- -----
Income Before Taxes.. 486 390 25
Income Taxes......... 93 120 (23)
----- -----
Net Income........... $ 393 $ 270 46
===== =====
Average Assets($B)... 55 48 15
Return on Assets..... 2.87% 2.28% -
- ----------
(A) Revenue, Operating Expense, Operating Margin and Credit Costs adjusted for
credit-related items.
NM Not meaningful, as percentage exceeds 100%.
<PAGE>
Page 15 - Citicorp First Quarter 1996 results - 4/16/96
CORPORATE ITEMS(A)
($ Millions)
First Quarter %
1996 1995(B) Chg
----- ------ ---
Revenue................... $ 248 $ 162 53
Operating Expense......... 121 87 39
----- -----
Income Before Taxes....... 127 75 69
Income Taxes.............. 195 106 84
----- -----
Net Loss................... $ (68) $ (31) NM
===== =====
- ----------
(A) Corporate Items revenue principally reflects amounts derived from charging
businesses for funds employed. Expenses represent unallocated corporate
costs, while income taxes include the offset created by attributing income
taxes to business activities on a local tax basis.
(B) Reclassified to conform to current quarter's presentation.
NM Not meaningful, as percentage exceeds 100%.
<PAGE>
Page 16 - Citicorp First Quarter 1996 results - 4/16/96
ASSET QUALITY
COMMERCIAL CASH-BASIS LOANS AND OREO
($ Millions) 1Q 4Q 3Q 2Q 1Q
1996 1995 1995 1995 1995
------ ------ ------ ------ ------
Comm'l Cash-Basis Loans:
Collateral-Dependent(A) $ 763 $ 779 $ 899 $1,040 $1,329
Other.................. 766 755 775 612 712
----- ----- ----- ----- -----
Total Commercial
Cash-Basis Loans....... 1,529 1,534 1,674 1,652 2,041
Commercial OREO......... 518 625 960 1,054 1,014
----- ----- ----- ----- -----
Total Commercial
Cash-Basis Loans & OREO $2,047 $2,159 $2,634 $2,706 $3,055
===== ===== ===== ===== =====
Comm'l Cash-Basis Loans
N.A. Commercial
Real Estate........... $ 862 $ 862 $1,010 $1,177 $1,467
Other.................. 667 672 664 475 574
----- ----- ----- ----- -----
Total Commercial
Cash-Basis Loans....... $1,529 $1,534 $1,674 $1,652 $2,041
===== ===== ===== ===== =====
ALLOWANCE FOR CREDIT LOSSES
Consumer................ $1,966 $1,944 $1,931 $1,923 $1,897
Commercial.............. 3,424 3,424 3,410 3,385 3,373
----- ----- ----- ----- -----
Total................... $5,390 $5,368 $5,341 $5,308 $5,270
===== ===== ===== ===== =====
Reserve for Consumer
Sold Portfolios........ $ 482 $ 486 $ 473 $ 467 $ 450
ALLOWANCE AS A PERCENTAGE
OF TOTAL LOANS
Consumer................ 1.89% 1.84% 1.88% 1.91% 1.93%
Commercial.............. 5.58 5.71 5.89 5.90 5.79
Total................... 3.26% 3.24% 3.32% 3.36% 3.37%
ADDITIONAL DATA
Commercial Allowance
as a % of Total Commercial
Cash-Basis Loans....... 224% 223% 204% 205% 165%
Commercial Renegotiated
Loans.................. $ 338 $ 421 $ 395 $ 385 $ 338
Consumer Cash-Basis
Loans.................. $2,719 $2,660 $2,665 $2,697 $2,693
Assets Pending
Disposition(A)......... $ 192 $ 205 $ 195 $ 195 $ 209
Consumer OREO .......... $ 530 $ 529 $ 561 $ 545 $ 601
- ----------
(A) Carried at lower of cost or collateral value.
<PAGE>
Page 17 - Citicorp First Quarter 1996 results - 4/16/96
DETAILS OF CREDIT LOSS EXPERIENCE
($ Millions)
1Q 4Q 3Q 2Q 1Q
1996 1995 1995 1995 1995
------ ------ ------ ------ ------
NET WRITE-OFFS
(RECOVERIES):
Consumer ............. $ 413 $ 441 $ 415 $ 379 $ 309
Commercial............ 31 26 86 52 (16)
----- ----- ----- ----- -----
Total................. $ 444 $ 467 $ 501 $ 431 $ 293
===== ===== ===== ===== =====
PROVISION FOR
CREDIT LOSSES:
Consumer.............. $ 463 $ 491 $ 465 $ 429 $ 359
Commercial............ 31 40 111 64 32
----- ----- ----- ----- -----
Total................. $ 494 $ 531 $ 576 $ 493 $ 391
===== ===== ===== ===== =====
<PAGE>
Page 18 - Citicorp First Quarter 1996 results - 4/16/96
CONSOLIDATED STATEMENT OF INCOME CITICORP and Subsidiaries
(In Millions of Dollars,
Except Per Share Amounts)
First Quarter %
1996 1995 Chg
------ ------ ---
Interest Revenue...... $ 5,776 $ 5,597 3
Interest Expense...... 3,091 3,272 (6)
------ ------
Net Interest Revenue. 2,685 2,325 15
------ ------
Fees & Commissions.... 1,312 1,262 4
Trading Account....... 90 39 NM
Foreign Exchange...... 205 305 (33)
Securities Trans...... 102 26 NM
Other Revenue......... 434 486 (11)
------ ------
Total Fees, Commissions
and Other Revenue... 2,143 2,118 1
------ ------
TOTAL REVENUE......... 4,828 4,443 9
------ ------
PROVISION FOR
CREDIT LOSSES........ 494 391 26
------ ------
Operating Expense:
Salaries............. 1,132 1,080 5
Employee Benefits.... 337 298 13
Net Premises &
Equipment Expense... 457 410 11
Other Expense........ 934 905 3
------ ------
TOTAL OPERATING
EXPENSE.............. 2,860 2,693 6
------ ------
INCOME BEFORE TAXES... 1,474 1,359 8
INCOME TAXES.......... 560 530 6
------ ------
NET INCOME............ $ 914 $ 829 10
====== ======
INCOME APPLICABLE
TO COMMON STOCK...... $ 871 $ 735 19
====== ======
EARNINGS PER SHARE:
On Common & Common
Equivalent Shares.... $ 1.82 $ 1.71
Assuming Full Dilution $ 1.75 $ 1.53
- ----------
NM Not meaningful, as percentage exceeds 100%.
<PAGE>
Page 19 - Citicorp First Quarter 1996 results - 4/16/96
CONSOLIDATED BALANCE SHEET CITICORP and Subsidiaries
(In Millions of Dollars)
Mar. 31 Dec. 31 %
1996 1995 Chg
------- ------- ---
ASSETS
Cash and Due from Banks......... $ 6,203 $ 5,723 8
Deposits at Interest with Banks. 10,559 9,028 17
Securities:
Available for Sale............. 20,460 18,213 12
Venture Capital................ 1,938 1,854 5
Trading Account Assets.......... 30,978 32,093 (3)
Federal Funds Sold &
Securities Purchased
Under Resale Agreements........ 10,715 8,113 32
Loans, Net of Unearned Income
Consumer....................... 104,124 105,643 (1)
Commercial..................... 61,327 59,999 2
------- -------
Total Loans, Net............ 165,451 165,642 -
Allowance for Credit Losses..... (5,390) (5,368) -
Customers' Acceptance Liability. 1,847 1,542 20
Premises & Equipment, Net....... 4,371 4,339 1
Interest & Fees Receivable...... 2,926 2,914 -
Other Assets.................... 13,508 12,760 6
------- -------
Total........................... $263,566 $256,853 3
======= =======
LIABILITIES
Non-Int. Deposits (in the U.S.). $ 12,455 $ 13,388 (7)
Int. Deposits (in the U.S.)..... 38,494 36,700 5
Non-Int. Deposits (Outside the
U.S.).......................... 8,084 8,164 (1)
Int. Deposits(Outside the U.S.). 112,971 108,879 4
------- -------
Total Deposits.............. 172,004 167,131 3
Trading Account Liabilities..... 18,089 18,274 (1)
Purchased Funds &
Other Borrowings............... 16,883 16,334 3
Acceptances Outstanding......... 1,877 1,559 20
Accrued Taxes & Other Expenses.. 5,594 5,719 (2)
Other Liabilities............... 10,113 9,767 4
Long-Term Debt and Subordinated
Capital Notes.................. 19,244 18,488 4
STOCKHOLDERS' EQUITY (A)
Preferred Stock
(Without Par Value)............ 2,078 3,071 (32)
Common Stock (Par value $1.00).. 502 461 9
Surplus......................... 6,415 5,702 13
Retained Earnings .............. 12,184 12,190 -
Net Unrealized Gains -
Securities Available for Sale.. 174 132 32
Foreign Currency Translation.... (448) (437) (3)
Common Stock in Treasury,
at Cost........................ (1,143) (1,538) 26
------- -------
Total Stockholders' Equity.. 19,762 19,581 1
------- -------
Total........................... $263,566 $256,853 3
======= =======
- ----------
(A) During the first quarter of 1996 the remaining Convertible Preferred Stock,
Series 12 and 13 totaling $993 million were converted to common
stockholders' equity. The $590 million, Series 12 conversion resulted in
increases to common stock and surplus, while the $403 million Series 13
conversion resulted in $1.1 billion issuance from treasury stock and a
reduction in retained earnings of $0.7 billion. Treasury stock at March 31,
1996 also reflected buybacks during the 1996 first quarter of $0.7 billion
under the stock repurchase program.
<PAGE>
Page 20 - Citicorp First Quarter 1996 results - 4/16/96
ADDITIONAL FINANCIAL DATA
1Q 4Q 3Q 2Q 1Q
1996 1995 1995 1995 1995
------- ------- ------- ------- -------
NET INTEREST REVENUE(A)
($ Millions)
Net Interest
Revenue ..................... $ 2,693 $ 2,569 $ 2,606 $ 2,476 $ 2,333
Effect of Credit Card
Securitization .............. 570 537 508 497 468
------- ------- ------- ------- -------
Total Adjusted Net
Interest Revenue ............ $ 3,263 $ 3,106 $ 3,114 $ 2,973 $ 2,801
======= ======= ======= ======= =======
Net Interest Margin .......... 4.74% 4.51% 4.67% 4.42% 4.23%
Net Interest Margin
(Adjusted)(B) ............... 5.15% 4.91% 5.04% 4.80% 4.61%
CONSOLIDATED AVERAGE
BALANCES
Loans($B):
Consumer .................... $ 104 $ 103 $ 101 $ 99 $ 96
Commercial .................. 59 58 56 57 56
------- ------- ------- ------- -------
Total Average
Loans($B) ................... $ 163 $ 161 $ 157 $ 156 $ 152
======= ======= ======= ======= =======
Average Credit Card
Securitization($B) .......... $ 26 $ 25 $ 24 $ 23 $ 22
Total Average
Assets($B) .................. $ 268 $ 266 $ 266 $ 273 $ 269
Avg. Interest
Earning Assets($B)
-As Reported ............. $ 229 $ 226 $ 221 $ 225 $ 224
-Adjusted(B) ............. $ 255 $ 251 $ 245 $ 248 $ 246
Common
Stockholders'
Equity ($M) ................. $17,362 $16,166 $15,716 $14,568 $13,653
Preferred
Equity ($M) ................. 2,367 3,169 3,717 4,326 4,262
------- ------- ------- ------- -------
Total Average
Stockholders'
Equity ($M) ................. $19,729 $19,335 $19,433 $18,894 $17,915
======= ======= ======= ======= =======
- ----------
(A) Taxable Equivalent Basis.
(B) Adjusted for the effect of credit card securitization.
<PAGE>
Page 21 - Citicorp First Quarter 1996 results - 4/16/96
EARNINGS PER SHARE DATA
First Quarter
1996 1995
------- -------
On Common and Common
Equivalent Shares(A):
Earnings($ Millions)...... $ 871 $ 759
Shares(Thousands)......... 478,615 444,489
Earnings Per Share........ $ 1.82 $ 1.71
Assuming Full Dilution(B):
Earnings($ Millions)...... $ 876 $ 793
Shares(Thousands)......... 500,761 517,928
Earnings Per Share........ $ 1.75 $ 1.53
COMMON SHARES OUTSTANDING
(In Thousands)
End Of Period............. 480,657 397,468
- ----------
(A) For the first quarter 1996, earnings per share on common and common
equivalent shares included shares issued upon redemption of Convertible
Preferred Stock, Series 12 and 13, commencing with the redemption dates.
For the first quarter 1995, dividends on Conversion Preferred Stock, Series
15 (which was redeemed in full during 1995) were added back to income
applicable to common stock, and the number of shares issuable on conversion
were added to weighted-average shares outstanding. Added to shares
outstanding for the 1996 and 1995 first quarters are other common
equivalent shares and book value shares issuable under certain benefit
plans.
(B) For the first quarter 1995 earnings per share assuming full dilution, the
dividends on Conversion Preferred Stock, Series 15 were added back to
income applicable to common stock, and the number of shares issuable on
conversion were added to weighted-average shares outstanding. Additionally,
for both first quarter periods, dividends on Convertible Preferred Stock,
Series 12 and 13 are added back to income applicable to common stock, and
the shares issuable on conversion are added to shares outstanding. From
conversion dates forward, these shares are included in common stock
outstanding. The number of common equivalent and book value shares are
calculated on a fully diluted basis as well.
<PAGE>
Page 22 - Citicorp First Quarter 1996 results - 4/16/96
OTHER REVENUE
($ Millions)
First Quarter
1996 1995(A)
------ ------
Securitized Credit
Card Receivables............ $ 233 $ 216
Venture Capital Gains........ 38 85
Affiliate Earnings........... 62 55
U.S. Mortgage Pass-Through
Securitization Activity..... 4 1
Foreign Currency Translation
(Losses) Gains.............. (4) 3
Gains on Sale of Residual
Value of Leased Equipment... 18 5
Net Asset Gains and
Other Items................. 83 121
------ ------
Total........................ $ 434 $ 486
====== ======
TRADING-RELATED REVENUE
($ Millions)
First Quarter
1996 1995
------ ------
By Income Statement Line:
Trading and
Foreign Exchange........... $ 295 $ 344
Other (Primarily Net
Interest Revenue).......... 97 51
------ ------
Total....................... $ 392 $ 395
====== ======
By Trading Activity:
Foreign Exchange............ $ 210 $ 265
Derivative.................. 146 99
Fixed Income................ (1) (43)
Other....................... 37 74
------ ------
Total....................... $ 392 $ 395
====== ======
By Business Sector:
Global Relationship
Banking.................... $ 167 $ 217
Emerging Markets............ 175 119
------ ------
Total(Corporate)Banking..... 342 336
Consumer and Other.......... 50 59
------ ------
Total........................ $ 392 $ 395
====== ======
- ----------
(A) Reclassified to conform to current quarter's presentation.
<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
<PAGE>
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 19, 1996
CITICORP AND SUBSIDIARIES
CALCULATION OF RATIO OF INCOME TO FIXED CHARGES
(In Millions)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31
EXCLUDING INTEREST ON DEPOSITS: 1995 1994 1993 1992 1991 1996 1995
------ ------ ------ ------ ------- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
FIXED CHARGES:
INTEREST EXPENSE (OTHER THAN
INTEREST ON DEPOSITS) 4,110 5,906 6,324 5,826 5,973 905 1,016
INTEREST FACTOR IN RENT EXPENSE 140 143 147 162 171 37 35
------ ------ ------ ------ ------- ----- -----
TOTAL FIXED CHARGES 4,250 6,049 6,471 5,988 6,144 942 1,051
INCOME:
NET INCOME(LOSS) 3,464 3,422(A) 1,919(B) 722 (914)(C) 914 829
INCOME TAXES 2,121 1,189 941 696 677 560 530
FIXED CHARGES 4,250 6,049 6,471 5,988 6,144 942 1,051
------ ------ ------ ------ ------- ----- -----
TOTAL INCOME 9,835 10,660 9,331 7,406 5,907 2,416 2,410
====== ====== ====== ====== ======= ===== =====
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS 2.31 1.76 1.44 1.24 0.96(D) 2.56 2.29
====== ====== ====== ====== ======= ===== =====
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE 13,012 14,902 16,121 16,327 17,089 3,091 3,272
INTEREST FACTOR IN RENT EXPENSE 140 143 147 162 171 37 35
------ ------ ------ ------ ------- ----- -----
TOTAL FIXED CHARGES 13,152 15,045 16,268 16,489 17,260 3,128 3,307
INCOME:
NET INCOME(LOSS) 3,464 3,422(A) 1,919(B) 722 (914)(C) 914 829
INCOME TAXES 2,121 1,189 941 696 677 560 530
FIXED CHARGES 13,152 15,045 16,268 16,489 17,260 3,128 3,307
------ ------ ------ ------ ------- ----- -----
TOTAL INCOME 18,737 19,656 19,128 17,907 17,023 4,602 4,666
====== ====== ====== ====== ======= ===== =====
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS 1.42 1.31 1.18 1.09 0.99(D) 1.47 1.41
====== ====== ====== ====== ======= ===== =====
</TABLE>
- ----------
(A) 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.
(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 LOSS FOR THE YEAR ENDED DECEMBER 31, 1991 EXCLUDES THE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE FOR VENTURE CAPITAL INVESTMENTS OF $457
MILLION.
(D) EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1991 WERE INADEQUATE TO COVER
FIXED CHARGES BY THE AMOUNT OF $237 MILLION.
CITICORP AND SUBSIDIARIES
CALCULATION OF RATIO OF INCOME TO FIXED CHARGES
INCLUDING PREFERRED STOCK DIVIDENDS
<TABLE>
<CAPTION>
(In Millions) THREE MONTHS ENDED
MARCH 31
EXCLUDING INTEREST ON DEPOSITS: 1995 1994 1993 1992 1991 1996 1995
----- ------ ------ ------ ------- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
FIXED CHARGES:
INTEREST EXPENSE (OTHER THAN
INTEREST ON DEPOSITS) 4,110 5,906 6,324 5,826 5,973 905 1,016
INTEREST FACTOR IN RENT EXPENSE 140 143 147 162 171 37 35
DIVIDENDS--PREFERRED STOCK 553 505(A) 465 416 271(A) 76 151
------- ------- ------- ------- ------- ------- -------
TOTAL FIXED CHARGES 4,803 6,554 6,936 6,404 6,415 1,018 1,202
INCOME:
NET INCOME(LOSS) 3,464 3,422(B) 1,919(C) 722 (914)(D) 914 829
INCOME TAXES 2,121 1,189 941 696 677 560 530
FIXED CHARGES (EXCLUDING PREFERRED
STOCK DIVIDENDS) 4,250 6,049 6,471 5,988 6,144 942 1,051
------- ------- ------- ------- ------- ------- -------
TOTAL INCOME 9,835 10,660 9,331 7,406 5,907 2,416 2,410
======= ======= ======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS 2.05 1.63 1.35 1.16 0.92(E) 2.37 2.00
======= ======= ======= ======= ======= ======= =======
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE 13,012 14,902 16,121 16,327 17,089 3,091 3,272
INTEREST FACTOR IN RENT EXPENSE 140 143 147 162 171 37 35
DIVIDENDS--PREFERRED STOCK 553 505(A) 465 416 271(A) 76 151
------- ------- ------- ------- ------- ------- -------
TOTAL FIXED CHARGES 13,705 15,550 16,733 16,905 17,531 3,204 3,458
INCOME:
NET INCOME(LOSS) 3,464 3,422(B) 1,919(C) 722 (914)(D) 914 829
INCOME TAXES 2,121 1,189 941 696 677 560 530
FIXED CHARGES (EXCLUDING PREFERRED
STOCK DIVIDENDS) 13,152 15,045 16,268 16,489 17,260 3,128 3,307
------- ------- ------- ------- ------- ------- -------
TOTAL INCOME 18,737 19,656 19,128 17,907 17,023 4,602 4,666
======= ======= ======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS 1.37 1.26 1.14 1.06 0.97(E) 1.44 1.35
======= ======= ======= ======= ======= ======= =======
</TABLE>
- ----------
(A) CALCULATED ON A BASIS OF AN ASSUMED TAX RATE OF 29% AND 34% FOR 1994 AND
1991, RESPECTIVELY.
(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 LOSS FOR THE YEAR ENDED DECEMBER 31, 1991 EXCLUDES THE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE FOR VENTURE CAPITAL INVESTMENTS OF $457
MILLION.
(E) EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1991 WERE INADEQUATE TO COVER
FIXED CHARGES BY THE AMOUNT OF $508 MILLION.
