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 16, 1996
Citicorp
(Exact name of registrant as specified in charter)
Delaware 1-5738 13-2614988
(State or other jurisdiction (IRS Employer
of incorporation) (Commission File Number) Identification 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>
PAGE 1 - Citicorp 1995 results
Item 5. Other Events
CITICORP REPORTS 1995 EARNINGS AT RECORD LEVELS,
WITH PRETAX RESULTS UP 21% AND RETURN ON EQUITY AT 18%
On January 16, 1996 Citicorp announced 1995 record pretax earnings of
$5.6 billion, an increase of 21% from 1994.
Net income of $3.464 billion, although also a record, was virtually
flat with last year's $3.366 billion -- the effective tax rate in 1995 was 38%,
compared with the unusually low 26% in 1994. Per share results were $6.48 in
1995, up from $6.29. Return on total equity was 18%, down from 21%, reflecting
higher equity levels. Total capital rose to $27.7 billion, up from $26.1
billion. Reserves were built by $0.3 billion to $5.4 billion.
John S. Reed, Chairman, said: "Our 1995 results continue to be
outstanding. Our global consumer business celebrated its 20th anniversary with
earnings of $2 billion, up 11% from 1994. Our banking business -- focused in the
emerging markets and on a key set of global customers -- earned $1.6 billion, up
15% from 1994.
"1995 was also the last year of our 1993-1995 effort to rebuild the
company's balance sheet -- we were about three quarters of a year ahead of plan.
Having significantly improved our portfolios, capital position, reserves, and
ratings in the first part of the year, we were able to use over $1.5 billion of
'free capital' to repurchase 23.1 million shares of our stock. As the company
enters 1996, it is focused on its global consumer and banking franchises and on
continuing to deliver superior results."
1995 1994 Change
($ in Millions, except per share)
Pretax Earnings $5,585 $4,611 21%
Net Income 3,464 3,366 3
Core Businesses 3,588 3,172 13
Earnings Per Share (Fully Diluted) $6.48 $6.29 3
Return on Total Equity 18% 21%
<PAGE>
PAGE 2 - Citicorp 1995 results
Revenue increased $1,927 million and operating expense increased $960
million, a 2:1 ratio in keeping with Citicorp's revenue/expense goal. Revenue
was up 11% (9% excluding the effect of foreign currency translation) from 1994,
primarily reflecting increases in the global consumer business, trading- related
revenue and banking activities in the emerging markets. Operating expense was up
9% (an on-target 7% excluding the effect of foreign currency translation). As a
result, the operating margin increased by $1 billion, or 13%.
The 1995 net credit loss ratio of 1.99% for managed consumer portfolios
was lower than in recent years, although it bottomed out in the 1995 first
quarter. Consumer credit costs of $2.473 billion were up 6%, reflecting an
expanded volume of card assets (which rose 18.0%) and new customers, as well as
losses in the consumer portfolios in Argentina and Mexico. Commercial credit
costs in the banking business remained low at $20 million in 1995; in the prior
year there was a net recovery of $116 million. North America Commercial Real
Estate credit costs declined $305 million to $52 million.
FOURTH QUARTER NET INCOME OF $905 MILLION ($1.72 PER SHARE); PRETAX EARNINGS
ROSE 17% TO A RECORD $1.4 BILLION
1995 1994 1995
4th Qtr 4th Qtr Change 3rd Qtr Change
------- ------- ------ ------- ------
($ in Millions,
except per share)
Pretax Earnings $1,440 $1,231 17% $1,388 4%
Net Income 905 1,042 (13) 877 3
Core Businesses 936 891 5 873 7
EPS (Fully Diluted) $1.72 $1.95 (12) $1.62 6
Return on Total Equity 19% 24% 18%
Revenue in the fourth quarter was up 6% to a record $5 billion and
expenses were up 5% from the fourth quarter of 1994, resulting in an operating
margin less credit costs of $1.5 billion. Pretax earnings of $1.4 billion were
up 17% from the previous-year quarter.
Net income of $905 million was down $137 million from the
1994 fourth quarter, reflecting lower taxes in the 1994 quarter, when $285
million of tax benefits were recognized. Net income improved 3% compared to the
1995 third quarter.
<PAGE>
PAGE 3 - Citicorp 1995 results
Global Consumer Business
------------------------
20 YEARS AND A RECORD $2 BILLION OF EARNINGS
Full Year 1995 1994 Change
---- ---- ------
($ in Millions)
Adjusted Revenue $12,272 $11,331 8%
Operating Expense 6,700 6,192 8
Operating Margin 5,572 5,139 8
Credit Costs 2,473 2,338 6
Pretax Earnings 2,899 2,601 11
Net Income 1,981 1,778 11
Return on Assets 1.65% 1.68%
Fourth Quarter 1995 1994 Change
---- ---- ------
($ in Millions)
Adjusted Revenue $3,195 $2,955 8%
Operating Expense 1,694 1,636 4
Operating Margin 1,501 1,319 14
Credit Costs 688 595 16
Pretax Earnings 763 674 13
Net Income 554 470 18
Return on Assets 1.79% 1.65%
Global Consumer net income increased 11% to $1.981 billion in 1995.
Citibanking earned $0.6 billion, up from $0.4 billion in 1994, led by the United
States and Europe. Cards earned $1.2 billion, up from $1.1 billion, reflecting
growth in Asia Pacific and the United States. The Private Bank earned $0.2
billion, virtually flat with 1994.
In the fourth quarter, net income was $554 million, up 18% from the same
1994 quarter. Net income in the second half of 1995 was $1.076 billion, up 19%
from $905 million in the 1995 first half and up 14% from the 1994 second half.
The 8% growth in adjusted revenue in both the year and the quarter from the
year earlier was led by cards in the U.S. and Asia Pacific and by Citibanking in
Latin America, Europe and the United States. Expense also increased by 8% in the
year and by 4% in the fourth quarter from the year-earlier quarter. Investment
spending continued, particularly in Asia Pacific and Latin America.
<PAGE>
PAGE 4 - Citicorp 1995 results
The overall consumer loss rate of 2.14% of managed loans in the 1995 fourth
quarter increased from 2.02% in the previous quarter and 2.03% in the 1994
fourth quarter. The increase was due mainly to the expanded volume and higher
loss rate of bankcard assets in the United States and economic difficulties in
some Latin American countries. The U.S. managed bankcards loss rate of 3.77%
compared with 3.70% in the 1995 third quarter and 3.49% in the 1994 fourth
quarter; the 1995 fourth quarter loss rate included a 12 basis point benefit
from the sale of certain bankrupt accounts. The loss rate in branch banking
worldwide was 1.20%, compared with 1.14% in the 1995 third quarter and 1.25% in
the 1994 fourth quarter.
At 58 million, the number of cards worldwide (including affiliates) was 7%
higher than in the 1994 fourth quarter, led by growth in the United States and
the Asia Pacific region. Charge volume on Citicorp-issued cards in Asia Pacific
was up 25% and on U.S. bankcards up 15%. Managed card receivables grew by 39% in
Asia Pacific. Managed U.S. bankcard receivables increased $6.0 billion, or 16%,
to $44.8 billion, and total accounts 2.7 million to 25.4 million from December
31, 1994. Total U.S. bankcard charge volume increased by $3.1 billion from the
1994 fourth quarter to $24.2 billion.
In the United States, the number of customers who enrolled to use
electronic banking services, primarily through personal computers, increased
more than 200% after fees were eliminated June 1, and an estimated 20% of the
approximately 125,000 customers were new to the bank. During the fourth quarter,
banking by personal computer was launched in Florida, with the result that
Citibank now offers free PC banking in all its U.S.
markets.
Citibank continued to implement its model-branch expansion, designed to
give a consistent look and customer experience worldwide. At year-end there were
439 model branches, comprising 36% of the more than 1,200 worldwide consumer
branches. During the quarter India and Thailand were added to the international
Citicard network, increasing to 31 the number of countries where the service is
available.
Assets under management in private banking rose 12% in 1995 to $87.5
billion from a year earlier.
<PAGE>
PAGE 5 - Citicorp 1995 results
Commercial Banking Business
---------------------------
SERVICE TO CORPORATE CUSTOMERS THROUGHOUT THE WORLD; NET INCOME UP 15%, RETURN
ON ASSETS REACHED 1.18%
Full Year 1995 1994 Change
---- ---- ------
($ Millions)
Adjusted Revenue $6,222 $5,513 13%
Operating Expense 3,929 3,510 12
Operating Margin 2,293 2,003 14
Credit Costs 20 (116) NM
Pretax Earnings 2,173 2,069 5
Net Income 1,607 1,394 15
Return on Assets 1.18% 1.00%
Fourth Quarter 1995 1994 Change
----- ------- -------
($ in Millions)
Adjusted Revenue $1,525 $1,580 (3)%
Operating Expense 1,000 966 4
Operating Margin 525 614 (14)
Credit Costs (3) 10 NM
Pretax Earnings 503 591 (15)
Net Income 382 421 (9)
Return on Assets 1.15% 1.19%
Commercial banking delivered solid performance in 1995, increasing revenues
and expanding the global network while reducing assets.
Net income of $1.6 billion increased $213 million from 1994 and represented
a return on assets of 1.18%, up from 1.00%. Fourth quarter net income of $382
million was down $39 million from the same 1994 quarter, reflecting lower
venture capital gains.
Full-year revenue of $6.2 billion increased 13% from 1994, primarily
because of improved worldwide trading results, as well as multinational client
and transaction services revenue growth in the emerging markets. The increases
were partially offset by the effects of repositioning in the developed markets
business designed to improve future returns. Fourth quarter revenues of
<PAGE>
PAGE 6 - Citicorp 1995 results
$1.5 billion declined $55 million from the same 1994 quarter, as stable core
business results and improved trading-related revenue were more than offset by
lower venture capital results attributable to a significant gain recognized in
the 1994 fourth quarter.
Trading-related revenue of $1.7 billion in 1995 increased $550 million from
1994, reflecting continued customer demand for risk-management products and
improvement in market-making activities. In the fourth quarter, trading-related
revenue of $413 million increased $126 million from the same 1994 quarter but
declined $85 million from the 1995 third quarter.
Expenses in the quarter were essentially unchanged from the third quarter
and up 4% from the prior-year fourth quarter. Expenses in the year were up 12%
(10% excluding the foreign currency translation effect), reflecting business
expansion in the emerging markets and continued investments in processing
efficiencies.
Net credit costs were negligible in both the 1995 and 1994 fourth quarters.
Credit costs in 1995 remained low at $20 million, compared with a net recovery
of $116 million in 1994.
Developed economies
- -------------------
Banking business in the developed economies earned $666 million in 1995 and
$168 million in the fourth quarter, compared with $581 million and $210 million
a year earlier.
Significant progress was made toward improving returns, with average assets
of $82 billion in the quarter reduced by $4 billion from the 1995 third quarter
and $14 billion from the 1994 fourth quarter. These declines are attributable to
a lower level of trading assets and business repositioning actions undertaken
during the year.
Revenue in 1995 grew $372 million, to $3.6 billion, reflecting primarily
improved trading results, partially offset by the effect of business
repositioning. Fourth quarter revenue of $866 million declined from the year-ago
quarter, primarily the result of a $180 million pretax venture capital gain
recognized in the 1994 quarter.
Fourth quarter expenses were essentially unchanged from the 1995 third
quarter and 1994 fourth quarter, while in the year expense increased 10% (8%
excluding the foreign exchange
<PAGE>
PAGE 7 - Citicorp 1995 results
translation effect), mainly from investment in technological efficiencies and
costs associated with increased business volume.
Emerging markets
- ----------------
In the banking business with global, local and regional customers in the
emerging markets, 1995 net income of $941 million was up by $128 million from
1994. Fourth quarter net income of $214 million increased $3 million from the
prior year's quarter.
Revenue growth of $337 million was led by increased business for
multinational clients and in transaction services. Revenue in 1995 also
reflected gains in trading-related activities, which were approximately equal to
the benefit in 1994 from an unusually favorable rate environment in Brazil. In
the fourth quarter, revenue increased $50 million to $659 million from the year-
earlier quarter. Expense in the quarter was essentially unchanged from the 1995
third quarter and up $29 million from the 1994 fourth quarter. Expense growth
from 1994 primarily reflected investment spending to grow the franchise.
The commercial banking business is now present in 73 emerging markets.
During the year Citibank absorbed costs related to 1994, 1995 and planned 1996
entries into seven countries and expansion of existing operations in six
countries. Citibank typically incurs net costs for two years before such
investments become profitable.
The Cross-Border Finance Group was first in 1995 rankings in the volume of
capital raised for emerging markets issuers outside their home countries.
Other
-----
North America Commercial Real Estate reported net income of $8 million
in the 1995 fourth quarter and a net loss of $9 million in the year, compared
with losses of $65 million and $299 million in the 1994 fourth quarter and year,
respectively. The improvement resulted from substantially lower credit costs.
Total commercial cash-basis loans and Other Real Estate Owned (OREO) of
$2.2 billion at December 31, 1995, including $1.3 billion related to North
America Commercial Real Estate, were down $0.9 billion from $3.1 billion a year
earlier and $0.5 billion from $2.6 billion in the third quarter.
<PAGE>
PAGE 8 - Citicorp 1995 results
The cross-border refinancing portfolio reported 1995 net income of $201
million, including $58 million in the fourth quarter, compared to $222 million
in 1994 and $74 million in the fourth quarter.
Corporate items had a net loss of $316 million in 1995 and $97 million in
the fourth quarter, compared with earnings of $327 million in 1994 and $142
million in the 1994 fourth quarter. The key factor in the 1995 results, both for
the year and the quarter, was a significantly lower level of tax benefits.
Capital
-------
Citicorp generated $1.8 billion of funds in excess of dividends,
capital building and needs for funding business expansion during the year. $1.5
billion of these funds were used to repurchase 23.1 million shares of common
stock, including 10.8 million shares for $726 million in the fourth quarter.
Total capital to risk-adjusted assets was estimated at 12.3% and Tier 1 capital
at 8.4%, compared with last year's 12.0% and 7.8%, respectively.
In November Citicorp completed the redemption of its Conversion Preferred
Stock, Series 15 (commonly called PERCS). Under the redemptions, Citicorp issued
approximately 27.5 million shares of common stock for PERCS, which had been
issued in October 1992 to raise approximately $1.1 billion of Tier 1 capital.
Employment
----------
Total employment was 85,300 at year-end 1995, compared with 82,600 a year
earlier. Employees outside the United States increased, especially in support of
consumer activities in emerging markets, as did employment in U.S. cards.
- --------------------------------------------------------------------------------
Tables detailing key financial data, an analysis of operating margin, pretax
earnings, business results and credit indicators follow, along with financial
statements. Further details concerning the financial results will be available
in March in Citicorp's Form 10-K.
<PAGE>
Page 9 - Citicorp Fourth Quarter 1995 results - 1/16/96
KEY RATIOS & OTHER CONSOLIDATED FINANCIAL DATA
Fourth Quarter Full Year
1995 1994 1995 1994
------ ------ ------ ------
NET INCOME ($M):
Before Cumulative Effect
of Accounting Change...... $ 905 $1,042 $ 3,464 $3,422
After Cumulative Effect
of Accounting Change(A)... 905 1,042 3,464 3,366
NET INCOME PER COMMON SHARE:
On Common & Common
Equivalent Shares
Before Cumulative Effect
of Accounting Change...... $ 1.89 $ 2.20 $ 7.21 $ 7.15
After Cumulative Effect
of Accounting Change(A)... 1.89 2.20 7.21 7.03
Assuming Full Dilution
Before Cumulative Effect
of Accounting Change...... $ 1.72 $ 1.95 $ 6.48 $ 6.40
After Cumulative Effect
of Accounting Change(A)... 1.72 1.95 6.48 6.29
COMMON STOCKHOLDERS' EQUITY
PER SHARE.................. $38.64 $34.38
CLOSING STOCK PRICE
AT QUARTER END............. $67.25 $41.38
PROFITABILITY RATIOS (Annualized):
Return on Total Assets:
Before Accounting Change... 1.35% 1.55% 1.29% 1.31%
After Accounting Change(A). 1.35 1.55 1.29 1.29
Return on Common
Stockholders' Equity:
Before Accounting Change... 20.5% 29.0% 20.8% 26.3%
After Accounting Change(A). 20.5 29.0 20.8 25.8
Return on Total
Stockholders' Equity:
Before Accounting Change... 18.6% 24.0% 18.3% 21.8%
After Accounting Change(A). 18.6 24.0 18.3 21.4
CAPITAL:
Tier 1 ($B)................ $ 18.9 $ 16.9
Tier 1 & 2 ($B)(B)......... 27.7 26.1
Tier 1 Ratio(B)............ 8.4% 7.8%
Tier 1 & 2 Ratio(B)........ 12.3 12.0
Common Equity as a
% of Total Assets........ 6.4% 5.4%
Total Equity as a
% of Total Assets........ 7.6% 7.1%
DIVIDENDS DECLARED ($M):
Common................... $ 127 $ 59 $ 492 $ 176
Preferred................ 72 91 343 358
(A) The 1994 full year results include the cumulative effect of adopting SFAS
No. 112, "Employers' Accounting for Postemployment Benefits," as of January
1, 1994.
(B) 1995 Estimated.
<PAGE>
Page 10 - Citicorp Fourth Quarter 1995 results - 1/16/96
OPERATING MARGIN
($ Millions)
Fourth Quarter Full Year
1995 1994 1995 1994
------ ------ ------ ------
Total Revenue ........... $4,789 $4,512 $18,678 $16,748
Effect of Credit Card
Securitization.......... 250 189 917 934
Net Cost to Carry(A)..... 8 (1) 23 89
Capital Building
Transactions............ - 60 - (80)
----- ----- ------ ------
Adjusted Revenue......... 5,047 4,760 19,618 17,691
----- ----- ------ ------
Total Operating Expense.. 2,818 2,723 11,102 10,256
Net OREO Benefit
(Costs)(B).............. 59 5 105 (9)
----- ----- ------ ------
Adjusted Operating
Expense................. 2,877 2,728 11,207 10,247
----- ----- ------ ------
Operating Margin......... 2,170 2,032 8,411 7,444
Consumer Credit
Costs(C)................ 688 595 2,473 2,338
Commercial Credit
Costs(D)................ (14) 66 72 239
----- ----- ------ ------
Operating Margin
Less Credit Costs....... 1,496 1,371 5,866 4,867
Additional Provision(E).. 56 80 281 336
Capital Building
Transactions............ - (60) - 80
----- ----- ------ ------
Income Before Taxes and
Cumulative Effect of
Accounting Change...... $1,440 $1,231 $ 5,585 $ 4,611
===== ===== ====== ======
(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 related to
commercial OREO and writedowns.
(C) Principally consumer net credit write-offs adjusted for the effect of credit
card receivables securitization.
(D) Includes commercial net credit write-offs, net cost to carry, and net OREO
costs.
(E) Represents consumer and commercial (excluding refinancing portfolio)
provision for credit losses in excess of net write-offs of $75 million in
the quarter and $300 million in the 1995 full year ($100 million and $400
million, respectively, in 1994). Fourth quarter and full year 1995 reflect a
reserve release of $19 million related to the cross-border refinancing
portfolio; releases of $20 million and $64 million are reflected in the
respective 1994 periods.
<PAGE>
Page 11 - Citicorp Fourth Quarter 1995 results - 1/16/96
BUSINESS FOCUS
Net Income (Loss)
($ Millions)
Fourth Quarter Full Year
1995 1994(A) 1995 1994(A)
------ ------ ------ ------
Global Consumer:
Developed Markets...... $ 346 $ 285 $1,194 $ 1,095
Emerging Markets....... 208 185 787 683
----- ----- ----- -----
Total Global Consumer... 554 470 1,981 1,778
----- ----- ----- -----
Global Finance:
Developed Markets...... 168 210 666 581
Emerging Markets....... 214 211 941 813
----- ----- ----- -----
Total Global Finance.... 382 421 1,607 1,394
----- ----- ----- -----
CORE BUSINESSES......... 936 891 3,588 3,172
----- ----- ----- -----
North America Commercial
Real Estate........... 8 (65) (9) (299)
Cross-Border Refinancing
Portfolio............. 58 74 201 222
Corporate Items(B)...... (97) 142 (316) 327
----- ----- ----- -----
905 1,042 3,464 3,422
Cumulative Effect of
Accounting Change(C).. - - - (56)
----- ----- ----- -----
Total Citicorp.......... $ 905 $1,042 $3,464 $ 3,366
===== ===== ===== =====
(A) Reclassified to conform to current quarter's presentation.
(B) See Corporate Items section for details.
(C) The 1994 full year results include the cumulative effect
of adopting SFAS No. 112.
<PAGE>
Page 12 - Citicorp Fourth Quarter 1995 results - 1/16/96
GLOBAL CONSUMER
($ Millions) Fourth Quarter % Full Year %
1995 1994(A)Chg 1995 1994(A) Chg
------ ------ --- ------ ------ ---
Total Revenue........ $2,943 $2,769 6 $11,343 $10,394 9
Total Operating
Expense............. 1,689 1,646 3 6,700 6,240 7
Provision For
Credit Losses ...... 491 449 9 1,744 1,553 12
----- ----- ------ ------
Income Before Taxes.. 763 674 13 2,899 2,601 11
Income Taxes......... 209 204 2 918 823 12
----- ----- ------ ------
Net Income........... $ 554 $ 470 18 $ 1,981 $ 1,778 11
===== ===== ====== ======
Average Assets ($B).. $ 123 $ 113 9 $ 120 $ 106 13
Return on Assets..... 1.79% 1.65% - 1.65% 1.68% -
OTHER DATA:
Developed Markets:
Net Income........... $ 346 $ 285 21 $ 1,194 $ 1,095 9
Average Assets($B)... 88 81 9 86 77 12
Return on Assets..... 1.56% 1.40% - 1.39% 1.42% -
Emerging Markets:
Net Income........... $ 208 $ 185 12 $ 787 $ 683 15
Average Assets($B)... 35 32 9 34 29 17
Return on Assets..... 2.36% 2.29% - 2.31% 2.36% -
Adjusted for Credit-
Related Items:
Total Revenue:
Developed Markets. $2,382 $2,237 6 $ 9,218 $ 8,724 6
Emerging Markets.. 813 718 13 3,054 2,607 17
----- ----- ------ ------
Total............... $3,195 $2,955 8 $12,272 $11,331 8
===== ===== ====== ======
Operating Expense:
Developed Markets. $1,251 $1,235 1 $ 5,015 $ 4,735 6
Emerging Markets.. 443 401 10 1,685 1,457 16
----- ----- ------ ------
Total............... $1,694 $1,636 4 $ 6,700 $ 6,192 8
===== ===== ====== ======
Operating Margin:
Developed Markets. $1,131 $1,002 13 $ 4,203 $ 3,989 5
Emerging Markets.. 370 317 17 1,369 1,150 19
----- ----- ------ ------
Total............... $1,501 $1,319 14 $ 5,572 $ 5,139 8
===== ===== ====== ======
Credit Costs (B):
Developed Markets. $ 582 $ 550 6 $ 2,176 $ 2,169 -
Emerging Markets.. 106 45 NM 297 169 76
----- ----- ------ ------
Total............... $ 688 $ 595 16 $ 2,473 $ 2,338 6
===== ===== ====== ======
(A) Reclassified to conform to current quarter's presentation.
(B) Includes U.S. Bankcards net credit losses for both held and securitized
receivables of $402 million and $1,476 million for the 1995 fourth quarter
and full year, respectively, and $316 million and $1,342 million for the
comparable periods of 1994.
NM Not meaningful,as percentage exceeds 100%.
<PAGE>
Page 13 - Citicorp Fourth Quarter 1995 results - 1/16/96
GLOBAL FINANCE
($ Millions) Fourth Quarter % Full Year %
1995 1994(A) Chg 1995 1994(A) Chg
------ ------ --- ------ ------ ---
Total Revenue......... $1,527 $1,584 (4) $6,240 $5,502 13
Total Operating
Expense.............. 992 952 4 3,903 3,433 14
Provision For
Credit Losses ....... 32 41 (22) 164 - NM
----- ----- ----- -----
Income Before Taxes... 503 591 (15) 2,173 2,069 5
Income Taxes.......... 121 170 (29) 566 675 (16)
----- ----- ----- -----
Net Income............ $ 382 $ 421 (9) $1,607 $1,394 15
===== ===== ===== =====
Average Assets($B).... $ 132 $ 140 (6) $ 136 $ 139 (2)
Return on Assets...... 1.15% 1.19% - 1.18% 1.00% -
OTHER DATA:
Developed Markets:
Net Income............ $ 168 $ 210 (20) $ 666 $ 581 15
Average Assets($B).... 82 96 (15) 90 96 (6)
Return on Assets...... 0.81% 0.87% - 0.74% 0.61% -
Emerging Markets:
Net Income............ $ 214 $ 211 1 $ 941 $ 813 16
Average Assets($B).... 50 44 14 46 43 7
Return on Assets...... 1.70% 1.90% - 2.05% 1.89% -
Adjusted for Credit-
Related Items:
Total Revenue:
Developed Markets.. $ 866 $ 971 (11) $3,555 $3,183 12
Emerging Markets... 659 609 8 2,667 2,330 14
----- ----- ----- -----
Total................ $1,525 $1,580 (3) $6,222 $5,513 13
===== ===== ===== =====
Operating Expense:
Developed Markets.. $ 653 $ 648 1 $2,582 $2,344 10
Emerging Markets... 347 318 9 1,347 1,166 16
----- ----- ----- -----
Total................ $1,000 $ 966 4 $3,929 $3,510 12
===== ===== ===== =====
Operating Margin:
Developed Markets.. $ 213 $ 323 (34) $ 973 $ 839 16
Emerging Markets... 312 291 7 1,320 1,164 13
----- ----- ----- -----
Total................ $ 525 $ 614 (14) $2,293 $2,003 14
===== ===== ===== =====
Credit Costs:
Developed Markets.. $ (3) $ 5 NM $ (13) $ (128) 90
Emerging Markets... - 5 NM 33 12 NM
----- ----- ----- -----
Total................ $ (3) $ 10 NM $ 20 $ (116) NM
===== ===== ===== =====
(A) Reclassified to conform to current quarter's presentation.
NM Not meaningful,as percentage exceeds 100%.
<PAGE>
Page 14 - Citicorp Fourth Quarter 1995 results - 1/16/96
NORTH AMERICA COMMERCIAL REAL ESTATE
($ Millions)
Fourth Quarter % Full Year %
1995 1994(A) Chg 1995 1994(A) Chg
------ ------ --- ------ ------ ---
Total Revenue........ $ 31 $ 26 19 $ 150 $ 81 85
Total Operating
Expense............. (14) 33 NM 48 180 (73)
Provision For
Credit Losses....... 27 88 (69) 102 394 (74)
----- ----- ----- -----
Income (Loss)
Before Taxes........ 18 (95) NM - (493) NM
Income Taxes (Benefit). 10 (30) NM 9 (194) NM
----- ----- ----- -----
Net Income (Loss).... $ 8 $ (65) NM $ (9) $ (299) 97
===== ===== ===== =====
OTHER DATA:
Average Assets ($B).. $ 4 $ 7 (43) $ 5 $ 8 (38)
Adjusted for Credit-
Related Items:
Total Revenue.... $ 39 $ 32 22 $ 179 $ 156 15
Operating Expense.. 32 34 (6) 127 142 (11)
Credit Costs....... (11) 56 NM 52 357 (85)
(A) Reclassified to conform to current quarter's presentation.
NM Not meaningful, as percentage exceeds 100%.
<PAGE>
Page 15 - Citicorp Fourth Quarter 1995 results - 1/16/96
CROSS-BORDER REFINANCING PORTFOLIO
($ Millions)
Fourth Quarter % Full Year %
1995 1994(A) Chg 1995 1994(A) Chg
------ ------ --- ------ ------ ---
Total Revenue........$ 48 $ 62 (23) $ 227 $ 197 15
Total Operating
Expense............. 5 4 25 18 16 13
Provision For
Credit Losses....... (19) (20) 5 (19) (66) 71
----- ----- ----- -----
Income Before Taxes.. 62 78 (21) 228 247 (8)
Income Taxes......... 4 4 - 27 25 8
----- ----- ----- -----
Net Income ..........$ 58 $ 74 (22) $ 201 $ 222 (9)
===== ===== ===== =====
OTHER DATA:
Average Assets ($B)..$ 3 $ 4 (25) $ 3 $ 3 -
CORPORATE ITEMS
($ Millions)
Fourth Quarter % Full Year %
1995 1994(A) Chg 1995 1994(A) Chg
----- ------ --- ----- ------ ---
Total Revenue........$ 240 $ 71 NM $ 718 $ 574 25
Total Operating
Expense............. 146 88 66 433 387 12
----- ----- ----- -----
Income(Loss)
Before Taxes........ 94 (17) NM 285 187 52
Income Taxes(Benefit). 191 (159) NM 601 (140) NM
----- ----- ----- -----
Net(Loss)Income(B)...$ (97) $ 142 NM $ (316) $ 327 NM
===== ===== ===== =====
(A) Reclassified to conform to current quarter's presentation.
(B) Corporate Items includes net after-tax losses from capital building
transactions of $39 million ($60 million before taxes) in the 1994 fourth
quarter as well as net after-tax gains of $49 million ($80 million before
taxes) in the 1994 full year. Additionally, Corporate Items includes the
offset created by attributing income taxes to business activities on a
local tax basis. Fourth quarter and full year 1995 includes $10 million and
$40 million respectively, in deferred tax benefits compared to $285 million
and $629 million in the respective 1994 periods.
NM Not meaningful, as percentage exceeds 100%.
<PAGE>
Page 16 - Citicorp Fourth Quarter 1995 results - 1/16/96
ASSET QUALITY
COMMERCIAL CASH-BASIS LOANS AND OREO
($ Millions) 4Q 3Q 2Q 1Q 4Q
1995 1995 1995 1995 1994
------ ------ ------ ------ ------
Comm'l Cash-Basis Loans:
Collateral-Dependent(A).$ 779 $ 899 $1,040 $1,329 $1,347
Other................... 733 751 582 654 666
------ ----- ----- ----- -----
Comm'l Cash-Basis Loans
(excluding Refinancing). 1,512 1,650 1,622 1,983 2,013
Cross-Border
Refinancing............. 22 24 30 58 104
------ ----- ----- ----- -----
Total Commercial
Cash-Basis Loans......... 1,534 1,674 1,652 2,041 2,117
Commercial OREO........... 625 960 1,054 1,014 958
------ ----- ----- ----- -----
Total Commercial
Cash-Basis Loans & OREO.$ 2,159 $2,634 $2,706 $3,055 $3,075
====== ===== ===== ===== =====
Comm'l Cash-Basis Loans
(excluding Refinancing):
N.A. Commercial
Real Estate............$ 862 $1,010 $1,177 $1,467 $1,543
Global Finance.......... 650 640 445 516 470
------ ----- ----- ----- -----
Total Commercial
Cash-Basis Loans
(excluding Refinancing)..$ 1,512 $1,650 $1,622 $1,983 $2,013
====== ===== ===== ===== =====
ALLOWANCE FOR CREDIT LOSSES
Global Consumer......... $ 1,944 $1,931 $1,923 $1,897 $1,834
Commercial.............. 3,424 3,410 3,385 3,373 3,321
------ ----- ----- ----- -----
Total................... $ 5,368 $5,341 $5,308 $5,270 $5,155
====== ===== ===== ===== =====
Reserve for Global Consumer
Sold Portfolios........ $ 486 $ 473 $ 467 $ 450 $ 422
ALLOWANCE AS A PERCENTAGE
OF TOTAL LOANS
Global Consumer......... 1.84% 1.88% 1.91% 1.93% 1.90%
Commercial.............. 5.71 5.89 5.90 5.79 5.95
Total................... 3.24% 3.32% 3.36% 3.37% 3.38%
ADDITIONAL DATA
Commercial Allowance
as a % of Total Commercial
Cash-Basis Loans....... 223% 204% 205% 165% 157%
Commercial Renegotiated
Loans.................. $ 421 $ 395 $ 385 $ 338 $ 718
Consumer Cash-Basis:
Loans.................. $ 2,660 $2,665 $2,697 $2,693 $2,604
Assets Pending
Disposition(A)........ $ 205 $ 195 $ 195 $ 209 $ 195
Consumer OREO .......... $ 529 $ 561 $ 545 $ 601 $ 569
(A) Carried at lower of cost or collateral value.
<PAGE>
Page 17 - Citicorp Fourth Quarter 1995 results - 1/16/96
DETAILS OF CREDIT LOSS EXPERIENCE
($ Millions)
4Q 3Q 2Q 1Q 4Q
1995 1995 1995 1995 1994
------ ------ ------ ------ ------
NET WRITE-OFFS
(RECOVERIES):
Global Consumer ...... $ 441 $ 415 $ 379 $ 309 $ 399
North America
Commercial
Real Estate......... 27 37 22 16 51
Global Finance........ 7 49 17 (9) 28
----- ----- ----- ----- -----
Total Commercial
(excluding
Refinancing)........ 34 86 39 7 79
----- ----- ----- ----- -----
Cross-Border
Refinancing.......... (8) - 13 (23) (20)
----- ----- ----- ----- -----
Total................. $ 467 $ 501 $ 431 $ 293 $ 458
===== ===== ===== ===== =====
4Q 3Q 2Q 1Q 4Q
1995 1995 1995 1995 1994
----- ----- ----- ----- -----
PROVISION FOR
CREDIT LOSSES:
Global Consumer....... $ 491 $ 465 $ 429 $ 359 $ 449
North America
Commercial
Real Estate......... 27 37 22 16 88
Global Finance........ 32 74 42 16 41
----- ----- ----- ----- -----
Total Commercial
(excluding
Refinancing)........ 59 111 64 32 129
----- ----- ----- ----- -----
Cross-Border
Refinancing.......... (19) - - - (20)
----- ----- ----- ----- -----
Total................. $ 531 $ 576 $ 493 $ 391 $ 558
===== ===== ===== ===== =====
COMMERCIAL NET OREO
WRITEDOWNS(NET GAINS
ON SALES):
North America
Commercial
Real Estate......... $ (38) $ (6) $ 9 $ 10 $ 7
Global Finance........ (8) (8) (10) (1) (14)
----- ----- ----- ----- -----
Total................. $ (46) $ (14) $ (1) $ 9 $ (7)
===== ===== ===== ===== =====
<PAGE>
Page 18 - Citicorp Fourth Quarter 1995 results - 1/16/96
CONSOLIDATED STATEMENT OF INCOME CITICORP and Subsidiaries
(In Millions of Dollars,
Except Per Share Amounts)
Fourth Quarter % Full Year %
1995 1994 Chg 1995 1994 Chg
------ ------ --- ------ ------ ---
Interest Revenue.... $5,858 $5,402 8 $22,963 $23,813 (4)
Interest Expense.... 3,298 3,080 7 13,012 14,902 (13)
----- ----- ------ ------
Net Interest Revenue 2,560 2,322 10 9,951 8,911 12
----- ----- ------ ------
Fees & Commissions... 1,372 1,377 - 5,165 5,155 -
Trading Account...... 196 29 NM 559 158 NM
Foreign Exchange..... 175 185 (5) 1,053 573 84
Securities Trans..... 67 22 NM 132 200 (34)
Other Revenue........ 419 577 (27) 1,818 1,751 4
----- ----- ------ ------
Total Fees, Commissions
and Other Revenue... 2,229 2,190 2 8,727 7,837 11
----- ----- ------ ------
TOTAL REVENUE......... 4,789 4,512 6 18,678 16,748 12
----- ----- ------ ------
PROVISION FOR
CREDIT LOSSES........ 531 558 (5) 1,991 1,881 6
----- ----- ------ ------
Operating Expense:
Salaries............. 1,124 1,051 7 4,445 4,029 10
Staff Benefits....... 302 284 6 1,281 1,136 13
Net Premises &
Equipment Expense... 438 427 3 1,698 1,583 7
Other Expense........ 954 961 (1) 3,678 3,508 5
----- ----- ------ ------
TOTAL OPERATING
EXPENSE.............. 2,818 2,723 3 11,102 10,256 8
----- ----- ------ ------
INCOME BEFORE TAXES
AND CUMULATIVE EFFECT
OF ACCOUNTING CHANGE. 1,440 1,231 17 5,585 4,611 21
Income Taxes......... 535 189 NM 2,121 1,189 78
----- ----- ------ ------
INCOME BEF. CUMULATIVE
EFFECT OF ACCTG CHANGE 905 1,042 (13) 3,464 3,422 1
Cumulative Effect of
Accounting Change(A). - - - - (56) NM
----- ----- ------ ------
NET INCOME........... $ 905 $1,042 (13) $ 3,464 $ 3,366 3
===== ===== ====== ======
INCOME APPLICABLE
TO COMMON STOCK..... $ 836 $ 950 (12) $ 3,126 $ 3,010 4
===== ===== ====== ======
EARNINGS PER SHARE:
On Common & Common Equiv. Shs
Income Before Cumulative
Eff. of Acctg Chg.... $ 1.89 $ 2.20 $ 7.21 $ 7.15
Income After Cumulative
Eff. of Acctg Chg.... $ 1.89 $ 2.20 $ 7.21 $ 7.03
Assuming Full Dilution
Income Before Cumulative
Eff. of Acctg Chg.... $ 1.72 $ 1.95 $ 6.48 $ 6.40
Income After Cumulative
Eff. of Acctg Chg.... $ 1.72 $ 1.95 $ 6.48 $ 6.29
(A) The 1994 full year results include the cumulative effect of adopting SFAS
No. 112.
NM Not meaningful, as percentage exceeds 100%.
<PAGE>
Page 19 - Citicorp Fourth Quarter 1995 results - 1/16/96
CONSOLIDATED BALANCE SHEET CITICORP and Subsidiaries
(In Millions of Dollars)
Dec. 31 Dec. 31 %
1995 1994 Chg
------- ------- ---
ASSETS
Cash and Due from Banks......... $ 5,723 $ 6,470 (12)
Deposits at Interest with Banks. 9,028 6,862 32
Securities(A):
Held to Maturity............... - 5,092 -
Available for Sale............. 18,213 13,602 34
Venture Capital................ 1,854 2,009 (8)
Trading Account Assets.......... 32,093 38,875 (17)
Federal Funds Sold &
Securities Purchased
Under Resale Agreements........ 8,113 6,995 16
Loans, Net of Unearned Income
Consumer....................... 105,643 96,600 9
Commercial..................... 59,999 55,820 7
------- -------
Total Loans, Net............ 165,642 152,420 9
Allowance for Credit Losses..... (5,368) (5,155) (4)
Customers' Acceptance Liability. 1,542 1,420 9
Premises & Equipment, Net....... 4,339 4,062 7
Interest & Fees Receivable...... 2,914 2,654 10
Other Assets.................... 12,760 15,183 (16)
------- -------
Total........................... $256,853 $250,489 3
======= =======
LIABILITIES
Non-Int. Deposits (in the U.S.). $ 13,388 $ 13,648 (2)
Int. Deposits (in the U.S.)..... 36,700 35,699 3
Non-Int. Deposits (Outside the
U.S.).......................... 8,164 7,212 13
Int. Deposits(Outside the U.S.). 108,879 99,167 10
------- -------
Total Deposits.............. 167,131 155,726 7
Trading Account Liabilities..... 18,274 22,382 (18)
Purchased Funds &
Other Borrowings............... 16,334 20,907 (22)
Acceptances Outstanding......... 1,559 1,440 8
Accrued Taxes & Other Expenses.. 5,719 5,493 4
Other Liabilities............... 9,767 8,878 10
Long-Term Debt.................. 17,151 16,497 4
Subordinated Capital Notes...... 1,337 1,397 (4)
STOCKHOLDERS' EQUITY
Preferred Stock
(Without Par Value)............ 3,071 4,187 (27)
Common Stock (Par value $1.00).. 461 421 10
Surplus......................... 5,702 4,194 36
Retained Earnings .............. 12,190 9,561 27
Net Unrealized Gains -
Securities Available for Sale(A) 132 278 (53)
Foreign Currency Translation.... (437) (471) 7
Common Stock in Treasury,
at Cost(B)..................... (1,538) (401) NM
------- -------
Total Stockholders' Equity.. 19,581 17,769 10
------- -------
Total........................... $256,853 $250,489 3
======= =======
(A) Reflects the transfer of $4.7 billion of securities from the
Held-to-Maturity portfolio to the Available-for-Sale portfolio at fair
value ($4.3 billion) as of November 30, 1995, as permitted under guidelines
issued by the FASB. As a result, total equity decreased $260 million (net
of tax).
(B) Amount at December 31, 1995 primarily reflects the repurchase of 23.1
million shares during 1995 at a cost of $1.5 billion.
NM Not meaningful, as percentage exceeds 100%.
<PAGE>
Page 20 - Citicorp Fourth Quarter 1995 results - 1/16/96
ADDITIONAL FINANCIAL DATA
4Q 3Q 2Q 1Q 4Q
1995 1995 1995 1995 1994
------ ------ ------ ------ ------
NET INTEREST
REVENUE(A)
($ Millions)
Net Interest
Revenue............. $ 2,569 $ 2,606 $ 2,476 $ 2,333 $ 2,328
Effect of Credit Card
Securitizations..... 537 508 497 468 470
------ ------ ------ ------ ------
Total Adjusted Net
Interest Revenue.... $ 3,106 $ 3,114 $ 2,973 $ 2,801 $ 2,798
====== ====== ====== ====== ======
Net Interest Margin.. 4.51% 4.67% 4.42% 4.23% 4.21%
Net Interest Margin
(Adjusted).......... 4.91% 5.04% 4.80% 4.61% 4.61%
CONSOLIDATED AVERAGE
BALANCES
4Q 3Q 2Q 1Q 4Q
1995 1995 1995 1995 1994
------ ------ ------ ------ ------
Loans($B):
Consumer............ $ 103 $ 101 $ 99 $ 96 $ 93
Commercial.......... 58 56 57 56 56
------ ------ ------ ------ ------
Total Average
Loans($B)........... $ 161 $ 157 $ 156 $ 152 $ 149
====== ====== ====== ====== ======
Average Credit Card
Securitizations($B). $ 25 $ 24 $ 23 $ 22 $ 22
Total Average
Assets($B).......... $ 266 $ 266 $ 273 $ 269 $ 267
Avg. Interest
Earning
Assets($B).......... $ 226 $ 221 $ 225 $ 224 $ 219
Common
Stockholders'
Equity ($M)......... $16,166 $15,716 $14,568 $13,653 $13,003
Preferred
Equity ($M)......... 3,169 3,717 4,326 4,262 4,187
------ ------ ------ ------ ------
Total Average
Stockholders'
Equity ($M)......... $19,335 $19,433 $18,894 $17,915 $17,190
====== ====== ====== ====== ======
(A) Taxable Equivalent Basis.
<PAGE>
Page 21 - Citicorp Fourth Quarter 1995 results - 1/16/96
EARNINGS PER SHARE DATA
(Before Cumulative Effect
of Accounting Change in 1994)
Fourth Quarter Full Year
1995 1994 1995 1994
------- ------- ------- -------
On Common and Common
Equivalent Shares(A):
Earnings($ Millions).. $ 840 $ 973 $ 3,188 $ 3,159
Shares(Thousands)(B).. 444,861 443,095 442,061 441,695
Earnings Per Share(D). $ 1.89 $ 2.20 $ 7.21 $ 7.15
Assuming Full Dilution(C):
Earnings($ Millions).. $ 868 $ 1,007 $ 3,315 $ 3,295
Shares(Thousands)(B).. 505,700 517,829 511,453 515,052
Earnings Per Share(D). $ 1.72 $ 1.95 $ 6.48 $ 6.40
COMMON SHARES OUTSTANDING
(In Thousands)
End Of Period......... 427,289 395,081
(A) For earnings per share on common and common equivalent shares, dividends on
Conversion Preferred Stock, Series 15 are added back to income applicable
to common stock, and the number of shares issuable on conversion are added
to weighted-average shares outstanding. Also added to shares outstanding
are other common equivalent shares and book value shares issuable under
certain benefit plans.
(B) Total shares in the fourth quarter and full year of 1995 reflect average
share repurchases of 17.5 million and 5.8 million, respectively.
(C) For earnings per share assuming full dilution, the dividends on Conversion
Preferred Stock, Series 15 are added back to income applicable to common
stock, and the number of shares issuable on conversion are added to
weighted-average shares outstanding. Additionally, 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. The number of common equivalent and book value shares are
calculated on a fully diluted basis as well.
(D) Full year 1995 calculations reflect the actual number of common shares
issued in connection with the redemptions of Conversion Preferred Stock,
Series 15. Previously reported interim periods included greater numbers of
common shares for unredeemed Series 15 shares computed under applicable
accounting guidelines based on market prices in those periods. As a result,
full year 1995 earnings per share amounts exceed the amounts that would be
derived from adding interim periods.
<PAGE>
Page 22 - Citicorp Fourth Quarter 1995 results - 1/16/96
OTHER REVENUE
($ Millions)
Fourth Quarter Full Year
1995 1994(A) 1995 1994(A)
------ ------ ------ ------
Securitized Credit
Card Receivables.......... $ 254 $ 260 $ 988 $ 955
Venture Capital Gains...... 28 213 390 365
Affiliate Earnings......... 51 46 208 208
U.S. Mortgage Pass-Through
Securitization Activity... 6 1 17 (59)
Foreign Currency Translation
(Losses)................. (4) (6) (2) (8)
Capital Building
Transactions.............. - (60) - 9
Net Asset Gains and
Other Items............... 84 123 217 281
------ ------ ------ ------
Total..................... $ 419 $ 577 $ 1,818 $ 1,751
====== ====== ====== ======
TRADING-RELATED REVENUE
($ Millions)
Fourth Quarter Full Year
1995 1994 1995 1994
------ ------ ------ ------
By Income Statement Line:
Trading and
Foreign Exchange......... $ 371 $ 214 $ 1,612 $ 731
Other (Primarily Net
Interest Revenue)........ 112 117 377 638
------ ------ ------ ------
Total..................... $ 483 $ 331 $ 1,989 $ 1,369
====== ====== ====== ======
By Trading Activity:
Foreign Exchange.......... $ 262 $ 194 $ 1,124 $ 689
Derivative................ 116 59 472 395
Fixed Income.............. 10 13 65 (8)
Other..................... 95 65 328 293
------ ------ ------ ------
Total..................... $ 483 $ 331 $ 1,989 $ 1,369
====== ====== ====== ======
By Business Sector:
Developed Markets........ $ 263 $ 178 $ 1,079 $ 648
Emerging Markets......... 150 109 658 539
------ ------ ------ ------
Total Global Finance...... 413 287 1,737 1,187
Global Consumer and Other. 70 44 252 182
------ ------ ------ ------
Total...................... $ 483 $ 331 $ 1,989 $ 1,369
====== ====== ====== ======
(A) Reclassified to conform to current quarter's presentation.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report and amendment 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, 1996
<TABLE>
CITICORP AND SUBSIDIARIES
CALCULATION OF RATIO OF INCOME TO FIXED CHARGES
(In Millions)
<CAPTION>
EXCLUDING INTEREST ON DEPOSITS: 1995 1994 1993 1992 1991
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
FIXED CHARGES:
INTEREST EXPENSE (OTHER THAN
INTEREST ON DEPOSITS) ................... 4,110 5,906 6,324 5,826 5,973
INTEREST FACTOR IN RENT EXPENSE ............ 140 143 147 162 171
------- ------- ------- ------- -------
TOTAL FIXED CHARGES ..................... 4,250 6,049 6,471 5,988 6,144
INCOME:
NET INCOME(LOSS) ........................... 3,464 3,422 (A) 1,919 (B) 722 (914)(C)
INCOME TAXES ............................... 2,121 1,189 941 696 677
FIXED CHARGES .............................. 4,250 6,049 6,471 5,988 6,144
------- ------- ------- ------- -------
TOTAL INCOME ............................ 9,835 10,660 9,331 7,406 5,907
======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS ............. 2.31 1.76 1.44 1.24 0.96(D)
======= ======= ======= ======= =======
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE ........................... 13,012 14,902 16,121 16,327 17,089
INTEREST FACTOR IN RENT EXPENSE ............ 140 143 147 162 171
------- ------- ------- ------- -------
TOTAL FIXED CHARGES ..................... 13,152 15,045 16,268 16,489 17,260
INCOME:
NET INCOME(LOSS) ........................... 3,464 3,422 (A) 1,919 (B) 722 (914)(C)
INCOME TAXES ............................... 2,121 1,189 941 696 677
FIXED CHARGES .............................. 13,152 15,045 16,268 16,489 17,260
------- ------- ------- ------- -------
TOTAL INCOME ............................ 18,737 19,656 19,128 17,907 17,023
======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS ............. 1.42 1.31 1.18 1.09 0.99(D)
======= ======= ======= ======= =======
(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.
</TABLE>
<TABLE>
CITICORP AND SUBSIDIARIES
CALCULATION OF RATIO OF INCOME TO FIXED CHARGES
INCLUDING PREFERRED STOCK DIVIDENDS
(In Millions)
<CAPTION>
EXCLUDING INTEREST ON DEPOSITS: 1995 1994 1993 1992 1991
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
FIXED CHARGES:
INTEREST EXPENSE (OTHER THAN
INTEREST ON DEPOSITS) .................. 4,110 5,906 6,324 5,826 5,973
INTEREST FACTOR IN RENT EXPENSE ........... 140 143 147 162 171
DIVIDENDS--PREFERRED STOCK ................ 553 505 (A) 465 416 271 (A)
------- ------- ------- ------- -------
TOTAL FIXED CHARGES .................... 4,803 6,554 6,936 6,404 6,415
INCOME:
NET INCOME(LOSS) .......................... 3,464 3,422 (B) 1,919 (C) 722 (914)(D)
INCOME TAXES .............................. 2,121 1,189 941 696 677
FIXED CHARGES (EXCLUDING PREFERRED
STOCK DIVIDENDS) ....................... 4,250 6,049 6,471 5,988 6,144
------- ------- ------- ------- -------
TOTAL INCOME ........................... 9,835 10,660 9,331 7,406 5,907
======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS ............ 2.05 1.63 1.35 1.16 0.92(E)
======= ======= ======= ======= =======
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE .......................... 13,012 14,902 16,121 16,327 17,089
INTEREST FACTOR IN RENT EXPENSE ........... 140 143 147 162 171
DIVIDENDS--PREFERRED STOCK ................ 553 505 (A) 465 416 271 (A)
------- ------- ------- ------- -------
TOTAL FIXED CHARGES .................... 13,705 15,550 16,733 16,905 17,531
INCOME:
NET INCOME(LOSS) .......................... 3,464 3,422 (B) 1,919 (C) 722 (914)(D)
INCOME TAXES .............................. 2,121 1,189 941 696 677
FIXED CHARGES (EXCLUDING PREFERRED
STOCK DIVIDENDS) ....................... 13,152 15,045 16,268 16,489 17,260
------- ------- ------- ------- -------
TOTAL INCOME ........................... 18,737 19,656 19,128 17,907 17,023
======= ======= ======= ======= =======
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS ............ 1.37 1.26 1.14 1.06 0.97(E)
======= ======= ======= ======= =======
(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.
</TABLE>
