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 15, 1997
Citicorp
(Exact name of registrant as specified in charter)
DELAWARE
(State or other jurisdiction of
incorporation)
1-5738
(Commission File Number)
13-2614988
(IRS Employer 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>
Item 5. Other Items
Citicorp first quarter net income reaches $995 million, up 9% on 10%
revenue gain,
Earnings per common share rose 15% to $2.01;
Return on common equity remains above 20%
First Quarter (Dollars in Millions, 1997 1996 Change
except EPS)
Adjusted Revenue $5,627 $5,117 10%
Net Income 995 914 9%
Earnings Per Share (Fully Diluted) $2.01 $1.75 15%
Return on Common Equity (%) 20.8 20.2 -
Return on Assets (%) 1.41 1.37 -
Average Shares Outstanding (Fully 476.0 500.8 -
Diluted)
On April 15, 1997, Citicorp reported that net income in the 1997
first quarter reached $995 million, up $81 million or 9% over the same
1996 period. Earnings per fully diluted common share were $2.01, up
15% over the 1996 first quarter.
"Our first quarter results are on track," said John S. Reed, Citicorp
Chairman. "We are accelerating our plans to get fully engaged in our
business directions, to offset continuing weakness in the U.S.
consumer credit environment plus the need to fund the expansion of our
franchise in the emerging markets and the globalization of our
processing base. We expect to end 1998 fully engaged in our business
strategy, with the improved momentum implied by it."
Excluding a previously disclosed incremental $60 million pretax charge
for performance-based options, the first quarter's results represented
earnings per share of $2.09 and achieved the following against
Citicorp's business directions performance targets: a 13% gain in net
income, a return on common equity of 21.6%, and a ratio of incremental
revenue to expense of 2.1 to 1 (1.7 to 1 including the charge).
During the quarter, the company generated an estimated $0.7 billion of
free capital and repurchased 6.1 million shares of common stock for
$704 million.
Citicorp's consumer businesses -- Citibanking, Cards, and the
Private Bank -- earned $490 million in the quarter on adjusted
revenue of $3.5 billion. Net income from serving corporate banking
customers worldwide was $650 million in the quarter on adjusted
revenue of $1.9 billion.
Details follow:
<PAGE>
Consumer businesses earn $490 million in the quarter,
Cards credit costs continued high
- ----------------------------------------------------------------------
First Quarter (Dollars in Millions) 1997 1996 Change
- ----------------------------------------------------------------------
Adjusted Revenue $3,487 $3,253 7%
Adjusted Operating Expense 1,868 1,755 6%
Operating Margin 1,619 1,498 8%
Credit Costs 894 706 27%
Income before Taxes 700 742 (6)%
Net Income 490 505 (3)%
Return on Assets (%) 1.52 1.62 -
- ----------------------------------------------------------------------
Consumer business net income of $490 million in the quarter declined
$15 million or 3% from the 1996 first quarter. The primary factor was
a 14% decline in Cards earnings, partially offset by improved earnings
in the Private Bank and Citibanking.
Adjusted revenue of $3.5 billion in the quarter rose $234 million or
7% from the 1996 first quarter. Managed net interest revenue and fee
and commission revenue were up 7% and 9%, respectively, from the year-
ago quarter. Expense of $1.9 billion increased $113 million or 6%.
Excluding the effect of foreign currency translation resulting from a
strengthening dollar, both revenue and expense increased 9%.
Consumer credit costs of $894 million were $50 million higher than the
1996 fourth quarter and $188 million higher than the 1996 first
quarter. The ratio of net credit losses to average managed loans was
2.69% in the quarter, compared with 2.51% in the preceding quarter and
2.19% a year-ago. The increase was in Cards, while Citibanking and
Private Bank credit costs improved modestly. Consumer businesses
continued to build the allowance for credit losses, adding $25 million
above net credit losses for Cards.
Consumer net income in the emerging markets for the 1997 first quarter
was $247 million, up $27 million or 12% from the 1996 first quarter,
reflecting improvements across all three businesses. Developed
markets net income of $243 million declined by $42 million or 15% from
the year-ago quarter, primarily due to the lower earnings in Cards.
Citibank was ranked top financial institution and sixth corporation
overall in Far Eastern Economic Review's annual survey of the
reputation in Asia of multinational corporations.
Citibanking
Citibanking activities -- which deliver products and services to
customers through branches and electronic delivery systems -- had
net income in the 1997 first quarter of $187 million, up $8 million or
4% from the 1996 first quarter. Return on assets in the quarter was
0.92%, slightly higher than a year ago.
Revenue of $1.5 billion in the quarter was up $57 million or 4% --
7% excluding the effect of foreign currency translation -- from the
1996 first quarter, reflecting higher business volumes. Excluding the
translation effect, revenue increased 8% in the developed markets, and
5% in the emerging markets, reflecting double-digit growth in Latin
America and slowed revenue growth in Asia Pacific.
Expense of $1.0 billion in the quarter increased $67 million or 7%
from the 1996 first quarter. Excluding the effect of foreign currency
translation, expenses were up 10%, including 9% in the developed
markets and 11% in the emerging markets, in support of higher business
volumes, new product development, and franchise expansion, as well as
technology initiatives.
2
<PAGE>
In the quarter, an additional 29 branches were upgraded to the
Citibanking standard for enhancing customer relationships and
efficiency, bringing the total of remodeled branches to 584 worldwide,
now more than half of total branches. In Latin America, Citibanking
expanded into its 13th country, the Dominican Republic, and is now
serving consumers in 42 countries worldwide.
Credit costs of $148 million in the quarter were down $7 million or 5%
from the 1996 fourth quarter and down $10 million or 6% from the year-
ago quarter, reflecting a net credit loss ratio of 0.91%, down from
0.94% in the previous quarter and 0.97% in the 1996 first quarter.
Cards
Net income in Cards worldwide -- bankcards, Diners Club, and private
label cards -- was $224 million in the quarter, a decrease of $37
million or 14% from the 1996 first quarter. The emerging markets
Cards business, which increased net income by 20% from the year-ago
quarter, represented approximately 41% of 1997 first quarter Cards
earnings. Earnings in the developed markets Cards businesses declined
from the 1996 first quarter, primarily in the U.S. bankcard business
which continued to operate in a challenging environment, characterized
by competitive pressures and a weaker credit climate. Cards worldwide
return on managed assets in the first quarter was 1.59%, compared with
1.96% in the year-ago quarter.
Cards revenue of $1.8 billion in the quarter increased by $153 million
or 10% from the 1996 first quarter. Revenue in the developed markets
was up 8%, including 11% growth in U.S. bankcards which reflected the
benefit of new risk and relationship-based pricing strategies, and an
increase in managed receivables of $2.5 billion or 6% to $45.1
billion. Charge volumes in the U.S. bankcards business increased from
the year-ago quarter by $1.6 billion or 8% to $23.0 billion. First
quarter revenue in the emerging markets Cards businesses was 16%
higher than the year-ago quarter, reflecting continued growth in the
Asia Pacific business, and strong results in Latin America.
Cards in force worldwide, including those issued by affiliates, were
61 million at the end of the quarter, an increase of two million from
a year-ago. The number of cards in North America was 41 million; and
cards in Latin America, Asia, and Europe totaled nine million, eight
million, and three million, respectively. Cards, including Diners
Club, operates in 43 countries.
Expense in worldwide Cards of $660 million increased $42 million or 7%
from the 1996 first quarter. Expense in the developed markets was up
6%, primarily reflecting investment spending in the U.S. for the
enhanced cardmember database and analytical tools, as well as
increased collection efforts. Expense in the emerging markets Cards
businesses increased 11% in support of higher loan volumes, as well as
continued investment in the franchise.
Credit costs in U.S. bankcards continued to increase, rising in the
quarter to $656 million or 5.91% of average managed loans, compared
with $608 million or 5.45% in the 1996 fourth quarter, and $467
million or 4.38% in the 1996 first quarter. The bankruptcy rate in
the 1997 first quarter was a seasonally low 36.6% of gross U.S.
bankcard write-offs, compared with 38.0% in the preceding quarter and
34.3% in the 1996 first quarter. Citicorp continues to write off
accounts upon notice of bankruptcy filing. Managed U.S. bankcard
loans delinquent 90 days or more were $884 million or 1.98% of the
portfolio at the end of the quarter, compared with $886 million or
1.90% at the end of the preceding quarter and $759 million or 1.80% a
year-ago.
Credit costs in Cards portfolios other than U.S. bankcards were $91
million or 4.25% of average loans in the quarter, compared with $77
million or 3.58% in the preceding quarter and $80 million or 4.40% in
the 1996 first quarter. Loans delinquent 90 days or more were $214
million or 2.42% of the portfolio, compared with $189 million or 2.13%
in the preceding quarter and $176 million or 2.31% in the year-ago
quarter.
In India, Diners Club, which holds the largest share of the country's
cards market, formed an alliance with British Airways to offer
cardholders a mileage program, a first in India.
3
<PAGE>
Private Bank
Private Bank net income of $79 million in the quarter increased $14
million or 22% from the 1996 first quarter, and resulted in a return
on assets of 1.88% for the quarter, compared with 1.63% in the year-
earlier quarter. Revenue of $270 million in the quarter was up $24
million or 10%, reflecting growth of 15% in the emerging markets and
8% in the developed markets. Revenue growth was led by fees and
commissions, up 15%, compared with the 1996 quarter, and by improved
trading-related results.
Expense of $166 million in the quarter increased $4 million or 2% from
1996. Excluding the effect of foreign currency translation, expense
increased 6%, primarily due to higher salary levels, including a 4%
increase in staff. Other expense growth was muted during the 1997
first quarter as cost savings from various strategic cost management
initiatives funded base expense growth as well as new marketing,
technology, and structural programs.
Credit recoveries of $1 million in the quarter compared with a charge
of $1 million in the year-ago period. Overall credit trends improved,
with loans delinquent 90 days or more down to $198 million or 1.28% of
loans from $260 million or 1.76% a year-earlier, reflecting continued
active portfolio management and the effect of improving economic
conditions on the customer base.
Client business volumes under management at the end of the quarter
totaled $98 billion, up $8 billion from a year earlier. Growth was
led by the advisory and discretionary investments areas.
Corporate Banking improves earnings 39% to $650 million in first
quarter;
Return on assets rises to 1.77%
- ----------------------------------------------------------------------
First Quarter (Dollars in Millions) 1997 1996 Change
- ----------------------------------------------------------------------
Adjusted Revenue $1,934 $1,617 20%
Adjusted Operating Expense 1,151 1,011 14%
Operating Margin 783 606 29%
Credit (Benefits) Costs (75) 15 NM
Income before Taxes 858 591 45%
Net Income 650 469 39%
Return on Assets (%) 1.77 1.36 -
- ----------------------------------------------------------------------
Corporate Banking net income of $650 million in the first quarter
increased $181 million or 39% from the 1996 first quarter while
average assets grew $10 billion or 7%. These results produced a
return on assets during the quarter of 1.77%, a 41 basis point
improvement from the year-ago quarter. Net income from Emerging
Markets was $450 million or 69% of total Corporate Banking earnings,
and Global Relationship Banking's net income was $200 million or 31%
of total Corporate Banking net income.
Revenue of $1.9 billion in the quarter increased $317 million or 20%
from the year-ago quarter. Expense of $1.2 billion in the quarter
increased $140 million or 14% from the comparable 1996 quarter.
Credit costs were a net benefit of $75 million and compared with a net
charge of $15 million in the year-ago quarter. The effective income
tax rate in the quarter rose to 24% from 21% in the 1996 first
quarter, due primarily to changes in the geographic mix and nature of
pretax earnings.
Citibank's corporate banking activities continued to be recognized in
various polls and surveys by business magazines, including number one
in derivatives in Institutional Investor, "cash management house of
the year" and "securitization house of the year" in Corporate Finance,
and number one in Asian debt issues in Asiamoney. Nine transactions
cited as "deal of the year" in various publications spanned Australia,
Chile, the Czech Republic, Indonesia, Kuwait, Laos, Mexico, and the
United States, with most of the transactions resulting from joint
efforts by Global Relationship Banking and Emerging Markets
professionals.
4
<PAGE>
Emerging Markets
Emerging Markets net income of $450 million grew $60 million or 15%
from the 1996 first quarter, benefiting from lower credit costs and a
decline in the effective income tax rate to 13% from 19% a year-ago.
Income before taxes totaled $518 million, up $39 million or 8% from
the 1996 quarter. Average assets grew $11 billion or 20%, resulting
in a return on assets of 2.77% in the 1997 first quarter, compared
with 2.85% in the 1996 first quarter.
Revenue of $933 million in the quarter increased $65 million or 7%
from the year-ago first quarter. Trading-related revenue was $218
million, up 23% from $177 million. Aggregate securities transactions
and asset gains were $154 million, compared with $109 million in the
1996 quarter, and included $46 million related to the refinancing
agreement concluded with Peru. These increases, together with growth
in transaction banking services, were partially offset by lower net
interest revenue attributable to less favorable market conditions than
in the 1996 quarter, principally in Latin America. About 20% of the
revenue in the Emerging Markets business was attributable to business
from multinational companies managed jointly with Global Relationship
Banking.
Expense of $451 million in the 1997 first quarter increased $72
million or 19% from the year-ago quarter, primarily reflecting
investment spending to build the franchise and costs associated with
implementing Citicorp's embedded bank plan to gain market share in
selected emerging market countries.
Credit costs were a net benefit of $36 million in the 1997 first
quarter and compared with a net charge of $10 million in the 1996
quarter. Credit costs in the 1997 quarter included a $50 million
recovery from the refinancing agreement concluded with Peru.
In China, Citibank, having been the only U.S. based bank and one of
eight non-Chinese banks licensed to conduct a local currency business,
opened a branch in Pudong -- its sixth office in the country -- in
preparation for launching local currency operations on April 4.
Global Relationship Banking
Net income from the Global Relationship Banking business in North
America, Europe, and Japan was $200 million, up $121 million from the
1996 first quarter, despite an increase in the effective income tax
rate to 41% from 29% in the 1996 first quarter. Income before taxes
totaled $340 million, up $228 million from the 1996 first quarter.
Return on assets of 0.98% improved from 0.38% in the 1996 first
quarter.
Revenue of $1.0 billion grew $252 million or 34% from the 1996 first
quarter. Trading-related revenue of $319 million increased $154
million or 93% and venture capital revenue of $93 million improved $55
million from the unusually low 1996 levels. These improvements were
complemented by a $32 million gain on the sale of an investment,
growth in transaction banking services revenue, and improved treasury
results, partially offset by net interest revenue spread compression.
Expense of $700 million increased $68 million or 11% compared with the
1996 first quarter, primarily reflecting increased spending on
technology, volume-related expense in transaction banking services,
and higher incentive compensation associated with revenue growth,
partially offset by reductions associated with the disposition of non-
strategic businesses.
Credit costs in the quarter were a net benefit of $39 million,
compared with a net charge of $5 million in the 1996 first quarter and
primarily reflected both lower gross write-offs and higher recoveries.
Other Items
Citicorp's effective tax rate was 38% in both the 1997 and 1996 first
quarters. Income taxes are attributed to core businesses on the basis
of local tax rates, which resulted in effective tax rates for the core
businesses of 27% in both the 1997 and 1996
5
<PAGE>
first quarters. The difference between the core businesses' tax rates
and Citicorp's overall effective rate in each period is included in
Corporate Items.
Corporate Items included pretax expense of $72 million, $70 million,
and $14 million for performance-based options in the 1997 first
quarter, the 1996 fourth quarter, and the 1996 first quarter,
respectively. These noncash charges were offset by increases to
common stockholders' equity. All of these options are now fully vested.
The adoption of Statement of Financial Accounting Standards No. 125 on
January 1, 1997 had no material impact on Citicorp.
At March 31, 1997, total credit loss reserves (including reserves for
off-balance sheet credit exposures) were $6.0 billion.
Tier 1 capital was $20.3 billion, total capital was estimated at $29.3
billion, and the Tier 1 and total capital ratios were estimated at
8.4% and 12.1%, respectively, at March 31, 1997. The ratio of common
equity to total assets was 6.5%. The number of shares acquired since
June 20, 1995, when the Board of Directors authorized the stock
repurchase program, totaled 65.3 million for an outlay of $5.3
billion. As expanded in January and November 1996, the program is
authorized to make total purchases for up to $8.5 billion.
Average common shares outstanding for the purpose of computing fully
diluted earnings per share were 476.0 million in the 1997 first
quarter, 480.9 million in the preceding quarter, and 500.8 million in
the 1996 first quarter, principally reflecting the net effect of the
share repurchase program and employee stock plans.
Tables detailing key financial data, an analysis of earnings, business
results and credit indicators follow, along with selected financial
statements and tables. Further details concerning the financial
results will be available in May in Citicorp's Form 10-Q.
6
<PAGE>
- ----------------------------------------------------------------------
FINANCIAL SUMMARY
- ----------------------------------------------------------------------
First Quarter %
1997 1996 Change
- ----------------------------------------------------------------------
Net Income (In $995 $914 9
Millions of Dollars)
- ----------------------------------------------------------------------
Net Income Per Share
Common & Common
Equivalent Shares $2.01 $1.82 10
Assuming Full
Dilution $2.01 $1.75 15
Common Stockholders'
Equity Per Share $41.08 $36.79 12
Closing Stock Price
At Quarter End $108.25 $80.00 35
- ----------------------------------------------------------------------
Financial Ratios
Return on Assets 1.41% 1.37% -
Return on Common
Stockholders' 20.8% 20.2% -
Equity
- ----------------------------------------------------------------------
Capital (Dollars in
Billions)
Tier 1 $20.3 $19.0 -
Total (Tier 1 and 2) 29.3 28.0 -
(A)
Tier 1 Ratio (A) 8.4% 8.4% -
Total Ratio (Tier 1 12.1% 12.4% -
and 2) (A)
Common Equity as a
Percentage of Total 6.5% 6.7% -
Assets
Total Equity as a
Percentage of Total 7.2% 7.5% -
Assets
- ----------------------------------------------------------------------
Dividends Declared
(In Millions of
Dollars)
Common $243 $210 -
Preferred 38 47 -
- ----------------------------------------------------------------------
(A) 1997 estimated.
- ----------------------------------------------------------------------
7
<PAGE>
- ----------------------------------------------------------------------
Earnings Analysis (In Millions of Dollars)
- ----------------------------------------------------------------------
First Quarter %
1997 1996 Change
- ----------------------------------------------------------------------
Total Revenue $5,196 $4,828 8
Effect of Credit
Card 434 294 48
Securitization
Activity (A)
Net Cost To Carry (3) (5) (40)
(B)
Adjusted Revenue 5,627 5,117 10
Total Operating 3,169 2,860 11
Expense
Net OREO Benefits 10 12 (17)
(C)
Adjusted
Operating Expense 3,179 2,872 11
Operating Margin 2,448 2,245 9
Consumer Credit 894 706 27
Costs (D)
Commercial Credit
(Benefits) Costs (75) 15 NM
(E)
Operating Margin
Less Credit Costs 1,629 1,524 7
Additional 25 50 (50)
Provision (F)
Income Before Taxes 1,604 1,474 9
Income Taxes 609 560 9
Net Income $ 995 $ 914 9
- ----------------------------------------------------------------------
(A) Includes effect related to credit card receivables held for sale
commencing with the 1997 first quarter (see page 16).
(B) Principally the net cost to carry commercial cash-basis loans and
other real estate owned ("OREO").
(C) Principally gains and losses on sales, direct revenue and
expense, and writedowns of commercial OREO.
(D) Principally consumer net credit write-offs adjusted for the
effect of credit card securitization activity.
(E) Includes commercial net credit (recoveries) write-offs, net cost
to carry, and net OREO benefits.
(F) Primarily charges for credit losses in excess of net write-offs.
NM Not meaningful, as percentage equals or exceeds 100%.
8
<PAGE>
- ----------------------------------------------------------------------
Earnings Summary
- ----------------------------------------------------------------------
First Quarter %
(In Millions of 1997 1996(A) Change
Dollars)
- ----------------------------------------------------------------------
Consumer $ 490 $505 (3)
Corporate Banking 650 469 39
Core Businesses 1,140 974 17
Corporate Items (145) (60) NM
Total Citicorp $ 995 $914 9
- ----------------------------------------------------------------------
Supplemental
Information:
Consumer:
Citibanking $187 $179 4
Cards 224 261 (14)
Private Bank 79 65 22
Total $490 $505 (3)
- ----------------------------------------------------------------------
Consumer Business
in:
Developed Markets $243 $285 (15)
Emerging Markets 247 220 12
Total $490 $505 (3)
- ----------------------------------------------------------------------
Corporate Banking:
Emerging Markets $450 $390 15
Global Relationship 200 79 NM
Banking
Total $650 $469 39
- ----------------------------------------------------------------------
(A) Reclassified to conform to the latest quarter's presentation.
NM Not meaningful, as percentage equals or exceeds 100%.
9
<PAGE>
- ----------------------------------------------------------------------
Consumer First Quarter %
(In Millions of 1997 1996(A) Change
Dollars)
- ----------------------------------------------------------------------
Total Revenue $3,053 $2,960 3
Effect of Credit
Card 434 294 48
Securitization
Activity (B)
Net Cost to Carry
Cash-Basis Loans - (1) NM
and OREO
Adjusted Revenue 3,487 3,253 7
Total Operating 1,869 1,755 6
Expense
Net OREO Costs (1) - NM
Adjusted Operating 1,868 1,755 6
Expense
Operating Margin 1,619 1,498 8
Net Write-offs 459 413 11
Effect of Credit
Card 434 294 48
Securitization
Activity (B)
Net Cost to Carry
and Net OREO 1 (1) NM
Costs
Credit Costs 894 706 27
Operating Margin
Less Credit Costs 725 792 (8)
Additional 25 50 (50)
Provision
Income Before Taxes 700 742 (6)
Income Taxes 210 237 (11)
Net Income $ 490 $ 505 (3)
- ----------------------------------------------------------------------
Average Assets (In
Billions of $131 $125 5
Dollars)
Return on Assets 1.52% 1.62% -
- ----------------------------------------------------------------------
(A) Reclassified to conform to the latest quarter's presentation.
(B) Includes effect related to credit card receivables held for sale
commencing with the 1997 first quarter (see page 16).
NM Not meaningful, as percentage equals or exceeds 100%.
10
<PAGE>
- ----------------------------------------------------------------------
(In Millions of First Quarter %
Dollars)
- ----------------------------------------------------------------------
Citibanking 1997 1996(A) Change
- ----------------------------------------------------------------------
Revenue $1,462 $1,405 4
Operating Expense 1,042 975 7
Operating Margin 420 430 (2)
Credit Costs 148 158 (6)
Operating Margin
Less Credit Costs 272 272 -
Additional - 1 NM
Provision
Income Before Taxes 272 271 -
Income Taxes 85 92 (8)
Net Income $ 187 $ 179 4
Average Assets (In
Billions of $82 $81 1
Dollars)
Return on Assets 0.92% 0.89% -
- ----------------------------------------------------------------------
Cards
- ----------------------------------------------------------------------
Adjusted Revenue $1,755 $1,602 10
Adjusted Operating 660 618 7
Expense
Operating Margin 1,095 984 11
Credit Costs 747 547 37
Operating Margin
Less Credit Costs 348 437 (20)
Additional 25 49 (49)
Provision
Income Before Taxes 323 388 (17)
Income Taxes 99 127 (22)
Net Income $ 224 $ 261 (14)
- ----------------------------------------------------------------------
Average Assets (In
Billions of $32 $28 14
Dollars)
Return on Assets 2.84% 3.75% -
(B)
- ----------------------------------------------------------------------
Private Bank
- ----------------------------------------------------------------------
Adjusted Revenue $270 $246 10
Adjusted Operating 166 162 2
Expense
Operating Margin 104 84 24
Credit (Benefits) (1) 1 NM
Costs
Operating Margin
Less Credit Costs 105 83 27
Additional - - -
Provision
Income Before Taxes 105 83 27
Income Taxes 26 18 44
Net Income $ 79 $ 65 22
- ----------------------------------------------------------------------
Average Assets (In
Billions of $17 $16 6
Dollars)
Return on Assets 1.88% 1.63% -
- ----------------------------------------------------------------------
(A) Reclassified to conform to the latest quarter's presentation.
(B) Adjusted for the off-balance sheet effect of credit card
securitization, the return on managed assets for worldwide Cards
was 1.59% in the 1997 quarter and 1.96% in the year-ago quarter.
NM Not meaningful, as percentage equals or exceeds 100%.
11
<PAGE>
- ----------------------------------------------------------------------
(In Millions of
Dollars)
- ----------------------------------------------------------------------
Consumer Business First Quarter %
in Developed Markets 1997 1996(A) Change
- ----------------------------------------------------------------------
Adjusted Revenue $2,539 $2,392 6
Adjusted Operating 1,336 1,273 5
Expense
Operating Margin 1,203 1,119 8
Credit Costs 802 613 31
Operating Margin
Less Credit Costs 401 506 (21)
Additional 22 48 (54)
Provision
Income Before Taxes 379 458 (17)
Income Taxes 136 173 (21)
Net Income $ 243 $ 285 (15)
- ----------------------------------------------------------------------
Average Assets (In
Billions of $89 $88 1
Dollars)
Return on Assets 1.11% 1.30% -
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
Consumer Business in Emerging Markets
- ----------------------------------------------------------------------
Adjusted Revenue $948 $861 10
Adjusted Operating 532 482 10
Expense
Operating Margin 416 379 10
Credit Costs 92 93 (1)
Operating Margin
Less Credit Costs 324 286 13
Additional 3 2 50
Provision
Income Before Taxes 321 284 13
Income Taxes 74 64 16
Net Income $247 $220 12
- ----------------------------------------------------------------------
Average Assets (In
Billions of $42 $37 14
Dollars)
Return on Assets 2.39% 2.39% -
- ----------------------------------------------------------------------
(A) Reclassified to conform to the latest quarter's presentation.
12
<PAGE>
- ----------------------------------------------------------------------
Corporate Banking First Quarter
%
(In Millions of 1997 1996(A) Change
Dollars)
- ----------------------------------------------------------------------
Total Revenue $1,937 $1,621 19
Net Cost to Carry
Cash-Basis Loans (3) (4) (25)
and OREO
Adjusted Revenue 1,934 1,617 20
Total Operating 1,140 999 14
Expense
Net OREO Benefits 11 12 (8)
Adjusted Operating 1,151 1,011 14
Expense
Operating Margin 783 606 29
Net (Recoveries) (61) 31 NM
Write-offs
Net Cost to Carry
and Net OREO (14) (16) (13)
Benefits
Credit (Benefits) (75) 15 NM
Costs
Operating Margin
Less Credit 858 591 45
(Benefits) Costs
Additional - - -
Provision
Income Before Taxes 858 591 45
Income Taxes 208 122 70
Net Income $ 650 $ 469 39
- ----------------------------------------------------------------------
Average Assets (In
Billions of $149 $139 7
Dollars)
Return on Assets 1.77% 1.36% -
- ----------------------------------------------------------------------
(A) Reclassified to conform to the latest quarter's presentation.
NM Not meaningful, as percentage equals or exceeds 100%.
13
<PAGE>
- ----------------------------------------------------------------------
(In Millions of First Quarter %
Dollars)
Emerging Markets 1997 1996(A) Change
- ----------------------------------------------------------------------
Adjusted Revenue $933 $868 7
Adjusted Operating 451 379 19
Expense
Operating Margin 482 489 (1)
Credit (Benefits) (36) 10 NM
Costs
Operating Margin
Less Credit 518 479 8
(Benefits) Costs
Additional - - -
Provision
Income Before Taxes 518 479 8
Income Taxes 68 89 (24)
Net Income $450 $390 15
- ----------------------------------------------------------------------
Average Assets (In
Billions of $66 $55 20
Dollars)
Return on Assets 2.77% 2.85% -
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
Global Relationship Banking
- ----------------------------------------------------------------------
Adjusted Revenue $1,001 $749 34
Adjusted Operating 700 632 11
Expense
Operating Margin 301 117 NM
Credit (Benefits) (39) 5 NM
Costs
Operating Margin
Less Credit 340 112 NM
(Benefits) Costs
Additional - - -
Provision
Income Before Taxes 340 112 NM
Income Taxes 140 33 NM
Net Income $ 200 $ 79 NM
- ----------------------------------------------------------------------
Average Assets (In
Billions of $83 $84 (1)
Dollars)
Return on Assets 0.98% 0.38% -
- ----------------------------------------------------------------------
(A) Reclassified to conform to the latest quarter's presentation.
NM Not meaningful, as percentage equals or exceeds 100%.
14
<PAGE>
- ----------------------------------------------------------------------
Corporate Items (A) First Quarter
%
(In Millions of 1997 1996(B) Change
Dollars)
- ----------------------------------------------------------------------
Revenue $ 206 $ 247 (17)
Operating Expense 160 106 51
Income Before Taxes 46 141 (67)
Income Taxes 191 201 (5)
Net Loss $(145) $(60) NM
- ----------------------------------------------------------------------
Average Assets (In
Billions of $5 $4 25
Dollars)
- ----------------------------------------------------------------------
(A) Corporate Items includes revenue derived from charging businesses
for funds employed (based upon a marginal cost of funds
concept), unallocated corporate costs, and the offset created by
attributing income taxes to core business activities on a local
tax-rate basis.
(B) Reclassified to conform to the latest quarter's presentation.
NM Not meaningful, as percentage equals or exceeds 100%.
15
<PAGE>
- ----------------------------------------------------------------------
Consumer Loan Delinquency Amounts, Net Credit Losses, and Ratios
Total 90 Days or More Average Net Credit Losses
Loans(A) Past Due (B) Loans(A) (B)
---------------------------------------------------------
Mar. Mar. Dec. Mar. 1st 1st 4th 1st
31, 31, 31, 31, Qtr. Qtr. Qtr. Qtr.
1997 1997 1996 1996 1997 1997 1996 1996
- ----------------------------------------------------------------------
Citibanking $66.4 $2,193 $2,320 $2,755 $65.8 $148 $155 $158
Ratio 3.30% 3.50% 4.18% 0.91% 0.94% 0.97%
Cards
U.S. bankcards 44.6 884 886 759 45.0 656 608 467
Ratio 1.98% 1.90% 1.80% 5.91% 5.45% 4.38%
Other 8.8 214 189 176 8.7 91 77 80
Ratio 2.42% 2.13% 2.31% 4.25% 3.58% 4.40%
Private Bank 15.4 198 193 260 15.1 (2) 4 2
Ratio 1.28% 1.26% 1.76% NM 0.07% 0.06%
- ----------------------------------------------------------------------
Total Managed 135.2 3,489 3,588 3,950 134.6 893 844 707
Ratio 2.58% 2.62% 3.03% 2.69% 2.51% 2.19%
- ----------------------------------------------------------------------
Securitized
Credit (25.4) (500) (501) (479) (25.1) (402) (389) (294)
Card
Receivables
Loans Held for (3.1) (39) - - (3.1) (32) - -
Sale
- ----------------------------------------------------------------------
Total Loan $106.7 $2,950 $3,087 $3,471 $106.4 $459 $455 $413
Portfolio
Ratio 2.76% 2.76% 3.33% 1.75% 1.68% 1.60%
- ----------------------------------------------------------------------
Managed
Portfolio:
Developed $101.5 $3,075 $3,218 $3,603 $101.5 $801 $767 $614
Ratio 3.03% 3.10% 3.58% 3.19% 3.01% 2.45%
Emerging 33.7 414 370 347 33.1 92 77 93
Ratio 1.23% 1.12% 1.17% 1.12% 0.94% 1.29%
- ----------------------------------------------------------------------
(A) Loan amounts, in billions of dollars, are net of unearned income.
(B) In millions of dollars.
NM Not meaningful.
- ----------------------------------------------------------------------
Consumer Loan Balances (A)
- ----------------------------------------------------------------------
End of Period Average
Mar. Dec. Mar. 1st 4th 1st
(In Billions of 31, 31, 31, Qtr. Qtr. Qtr.
Dollars) 1997 1996 1996 1997 1996 1996
- ----------------------------------------------------------------------
Managed $135.2 $137.0 $130.3 $134.6 $133.7 $129.8
Securitized Credit (25.4) (25.2) (26.2) (25.1) (25.9) (25.9)
Card Receivables
Loans Held for Sale (3.1) - - (3.1) - -
(B)
- ----------------------------------------------------------------------
Loan Portfolio $106.7 $111.8 $104.1 $106.4 $107.8 $103.9
- ----------------------------------------------------------------------
(A) Net of unearned income.
(B) Commencing with the first quarter 1997, Citicorp classifies
credit card and mortgage loans intended for sale as loans held
for sale, which are accounted for at the lower of cost or market
value with net credit losses charged to other revenue.
16
<PAGE>
- ----------------------------------------------------------------------
Cash-Basis and Renegotiated Loans
- ----------------------------------------------------------------------
March 31, Dec. 31, March 31,
(In Millions of Dollars) 1997 1996 1996
- ----------------------------------------------------------------------
Commercial Cash-Basis Loans
Collateral-Dependent (at Lower
of Cost or Collateral Value) (A) $288 $263 $ 763
Other 641 642 766
Total Commercial Cash-Basis Loans $929 $905 $1,529
- ----------------------------------------------------------------------
Commercial Renegotiated Loans $296 $321 $338
- ----------------------------------------------------------------------
Consumer Loans on which
Accrual of Interest has been $2,119 $2,187 $2,719
Suspended
- ----------------------------------------------------------------------
(A) 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.
- ----------------------------------------------------------------------
Other Real Estate Owned (OREO) and Assets Pending Disposition (A)
- ----------------------------------------------------------------------
March 31, Dec. 31, March 31,
(In Millions of Dollars) 1997 1996 1996
- ----------------------------------------------------------------------
Consumer OREO $ 408 $ 452 $ 530
Commercial OREO 593 614 518
Total OREO $1,001 $1,066 $1,048
- ----------------------------------------------------------------------
Assets Pending Disposition (B) $174 $160 $192
- ----------------------------------------------------------------------
(A) Carried at lower of cost or collateral value.
(B) Represents consumer residential mortgage loans that have a high
probability of foreclosure.
17
<PAGE>
- ----------------------------------------------------------------------
Credit Loss Reserves (A)
March 31, Dec. 31, March 31,
(Dollars In Millions) 1997 1996 1996
- ----------------------------------------------------------------------
Allowance for Credit Losses:
Consumer $2,442 $2,079 $1,966
Commercial 3,324 3,424 3,424
Total Allowance for Credit Losses 5,766 5,503 5,390
Reserves For Off-Balance Sheet 191 473 482
Credit Exposures
Total Credit Loss Reserves $5,957 $5,976 $5,872
- ----------------------------------------------------------------------
Allowance As a Percent of Total
Loans:
Consumer 2.29% 1.86% 1.89%
Commercial 5.06% 5.46% 5.58%
Total 3.34% 3.15% 3.26%
- ----------------------------------------------------------------------
(A) In the first quarter of 1997, to be consistent with industry
practice, Citicorp has changed the apportionment and display of
credit loss reserves to report (1) $50 million in Other
Liabilities attributable to standby letters of credit and
guarantees, and (2) $50 million deducted from Trading Account
Assets attributable to derivative and foreign exchange contracts,
and (3) to restore to the Allowance for Credit Losses $373
million that had previously been attributed to securitization
transactions where the exposure to credit losses is contractually
limited to the cash flows from the securitized receivables.
Reserves for off-balance sheet credit exposures at March 31, 1997
consist of the foregoing $50 million included in Other
Liabilities and $50 million deducted from Trading Account Assets
and also include $91 million deducted from Other Assets
attributable to mortgage loans sold with recourse. Prior period
amounts have not been reclassified.
- ----------------------------------------------------------------------
Net Write-offs, Additional Provision, and Provision for Credit Losses
First Quarter
(In Millions of Dollars) 1997 1996
- ----------------------------------------------------------------------
Net Write-offs (Recoveries):
Consumer (A) $ 893 $ 707
Commercial (61) 31
Total Adjusted Net Write-offs 832 738
Effect of Credit Card (434) (294)
Securitization Activity
Total $ 398 $ 444
- ----------------------------------------------------------------------
Additional Provision:
Consumer $25 $50
Commercial - -
Total $25 $50
- ----------------------------------------------------------------------
Provision for Credit Losses:
Consumer $ 484 $463
Commercial (61) 31
Total $ 423 $494
- ----------------------------------------------------------------------
(A) Adjusted for the effect of credit card securitization activity,
including the effect related to credit card receivables held for
sale commencing with the 1997 first quarter (see page 16).
18
<PAGE>
- ----------------------------------------------------------------------
Consolidated Statement of Income CITICORP and Subsidiaries
(In Millions of First Quarter %
Dollars,
Except Per Share 1997 1996 Change
Amounts)
- ----------------------------------------------------------------------
Net Interest Revenue $2,804 $2,685 4
Provision for Credit Losses 423 494 (14)
Net Interest Revenue after
Provision for Credit Losses 2,381 2,191 9
Fees, Commissions,
and Other Revenue
Fees and Commissions 1,352 1,312 3
Foreign Exchange 297 205 45
Trading Account 198 90 NM
Securities Transactions 108 102 6
Other Revenue 437 434 1
Total Fees, Commissions,
and Other Revenue 2,392 2,143 12
Operating Expense
Salaries 1,264 1,132 12
Employee Benefits 401 337 19
Total Employee Expense 1,665 1,469 13
Net Premises
and Equipment Expense 490 457 7
Other Expense 1,014 934 9
Total Operating Expense 3,169 2,860 11
Income Before Taxes 1,604 1,474 9
Income Taxes 609 560 9
Net Income $ 995 $ 914 9
- ----------------------------------------------------------------------
Income Applicable
to Common Stock $957 $871 10
Earnings Per Share:
On Common and Common
Equivalent Shares $2.01 $1.82 10
Assuming Full Dilution $2.01 $1.75 15
- ----------------------------------------------------------------------
NM Not meaningful, as percentage equals or exceeds 100%.
19
<PAGE>
- ----------------------------------------------------------------------
Consolidated Balance Sheet CITICORP and Subsidiaries
March 31, December %
(In Millions of Dollars) 1997 31, 1996 Change
- ----------------------------------------------------------------------
Assets
Cash and Due from Banks $ 6,574 $ 6,905 (5)
Deposits at Interest with Banks 12,593 11,648 8
Securities, at Fair Value
Available for Sale 30,608 26,062 17
Venture Capital 2,266 2,124 7
Trading Account Assets 33,196 30,785 8
Loans Held for Sale (A) 3,133 - NM
Federal Funds Sold and Securities
Purchased Under Resale Agreements 11,844 11,133 6
Loans, Net
Consumer 106,721 111,847 (5)
Commercial 65,750 62,765 5
------------------------------
Loans, Net of Unearned Income 172,471 174,612 (1)
Allowance for Credit Losses (5,766) (5,503) 5
------------------------------
Total Loans, Net 166,705 169,109 (1)
Customers' Acceptance Liability 2,188 2,077 5
Premises and Equipment, Net 4,655 4,667 -
Interest and Fees Receivable 3,131 3,068 2
Other Assets 13,461 13,440 -
------------------------------
Total $290,354 $281,018 3
==============================
Liabilities
Non-Interest-Bearing Deposits in $ 14,569 $ 14,867 (2)
U.S. Offices
Interest-Bearing Deposits in U.S. 39,820 40,254 (1)
Offices
Non-Interest-Bearing Deposits in 10,476 9,891 6
Offices Outside the U.S.
Interest-Bearing Deposits in Offices 123,983 119,943 3
Outside the U.S.
------------------------------
Total Deposits 188,848 184,955 2
Trading Account Liabilities 23,235 22,003 6
Purchased Funds and Other Borrowings 21,609 18,191 19
Acceptances Outstanding 2,235 2,104 6
Accrued Taxes and Other Expense 6,038 5,992 1
Other Liabilities 8,785 8,201 7
Long-Term Debt 18,824 18,850 -
Stockholders' Equity
Preferred Stock (Without par value) 1,903 2,078 (8)
Common Stock ($1.00 par value) 506 506 -
Issued Shares: 506,298,235 in each
period
Surplus 6,612 6,595 -
Retained Earnings 15,017 14,303 5
Net Unrealized Gains - Securities 687 676 2
Available for Sale
Foreign Currency Translation (517) (486) 6
Common Stock in Treasury, at Cost (3,428) (2,950) 16
Shares: 46,773,535 and 43,081,217,
respectively
Total Stockholders' Equity 20,780 20,722 -
------------------------------
Total $290,354 $281,018 3
==============================
- ----------------------------------------------------------------------
(A) Commencing with the first quarter 1997, Citicorp classifies credit
card and mortgage loans intended for sale as loans held for sale,
which are accounted for at the lower of cost or market value.
NM Not meaningful, as percentage equals or exceeds 100%.
- ----------------------------------------------------------------------
20
<PAGE>
- ----------------------------------------------------------------------
Net Interest Revenue 1st 4th 3rd 2nd 1st
Statistics Qtr. Qtr. Qtr. Qtr. Qtr.
(Taxable Equivalent Basis) 1997 1996 1996 1996 1996
(A)
- ----------------------------------------------------------------------
(In Millions of Dollars)
Adjusted Net Interest Revenue $3,449 $3,484 $3,330 $3,351 $3,263
(B):
Effect of Securitized Credit (630) (650) (613) (615) (570)
Card Receivables
--------------------------------------
Total $2,819 $2,834 $2,717 $2,736 $2,693
======================================
(In Billions of Dollars)
Adjusted Average Interest- $267.3 $262.2 $258.8 $256.8 $254.6
Earning Assets (B):
Effect of Securitized Credit (25.1) (25.9) (26.2) (26.2) (25.9)
Card Receivables
--------------------------------------
Total $242.2 $236.3 $232.6 $230.6 $228.7
======================================
Adjusted Net Interest Margin 5.23% 5.28% 5.12% 5.25% 5.15%
(B)
Effect of Securitized Credit (.51)% (.51)% (.47)% (.48)% (.41)%
Card Receivables
--------------------------------------
Total 4.72% 4.77% 4.65% 4.77% 4.74%
======================================
(A) The taxable equivalent adjustment is based on the U.S. federal
statutory tax rate of 35%.
(B) Adjusted for the effect of credit card securitization.
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
Consolidated Average Balances
1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr.
(In Billions of Dollars) 1997 1996 1996 1996 1996
- ----------------------------------------------------------------------
Loans:
Consumer $106 $108 $106 $104 $104
Commercial 62 61 61 60 59
-------------------------------------------
Total Average Loans $168 $169 $167 $164 $163
===========================================
Total Average Assets $285 $276 $268 $268 $268
===========================================
(In Millions of Dollars)
Common Stockholders' $18,698 $18,321 $17,950 $17,713 $17,362
Equity
Preferred Equity 2,049 2,078 2,078 2,078 2,367
-------------------------------------------
Total Average $20,747 $20,399 $20,028 $19,791 $19,729
Stockholders' Equity
===========================================
21
<PAGE>
- ----------------------------------------------------------------------
Calculation of Earnings Per Share
First Quarter 1997 First Quarter 1996
On Common On Common
and Common Assuming and Common Assuming
Equivalent Full Equivalent Full
(In Millions, except Per Shares Dilution Shares Dilution
Share Amounts)
- ----------------------------------------------------------------------
Earnings
Income Applicable to $957 $957 $871 $871
Common Stock
Dividends on Convertible
Preferred
Stock, Series 12 and - - - 5
Series 13 (A)
-------------------------------------------
Income Applicable to
Common Stock, Adjusted $957 $957 $871 $876
===========================================
Shares
Weighted-Average Common
Shares Outstanding (A) 461.4 461.4 463.4 463.4
Convertible Preferred
Stock, - - - 21.0
Series 12 and Series 13
(A)
Other Common Equivalent 14.6 14.6 15.2 16.4
Shares (B)
-------------------------------------------
Total 476.0 476.0 478.6 500.8
===========================================
Earnings Per Share
Net Income $2.01 $2.01 $1.82 $1.75
- ----------------------------------------------------------------------
(A) During the first quarter of 1996, the remaining Convertible
Preferred Stock, Series 12 and 13 were converted to 59.0 million
shares of common stock. The shares are included in the fully
diluted computation on an if-converted basis up to conversion
dates, and from conversion dates forward these shares are included
in weighted-average common shares outstanding.
(B) Includes the dilutive effect of stock options and stock purchase
agreements computed using the treasury stock method and shares
issuable under deferred stock awards.
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
March 31, March 31,
(In Thousands) 1997 1996
- ----------------------------------------------------------------------
Common Shares Outstanding 459,525 480,657
===========================================
22
<PAGE>
- ----------------------------------------------------------------------
Other Revenue First Quarter %
(In Millions of 1997 1996(A) Change
Dollars)
- ----------------------------------------------------------------------
Credit Card
Securitization $165 $233 (29)
Activity (B)
Venture Capital 93 38 NM
Affiliate Earnings 59 62 (5)
Net Asset Gains
and Other Items 120 101 19
----------------------
Total $437 $434 1
- ----------------------------------------------------------------------
(A) Reclassified to conform to the latest quarter's presentation.
(B) Includes net credit losses on credit card receivables held for
sale commencing with the 1997 first quarter (see page 16).
NM Not meaningful, as percentage equals or exceeds 100%.
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
Trading-Related First Quarter %
Revenue
(In Millions of 1997 1996(A) Change
Dollars)
- ----------------------------------------------------------------------
By Business Sector:
Corporate Banking:
Emerging Markets $218 $177 23
Global
Relationship 319 165 93
Banking
Total
Corporate Banking 537 342 57
Consumer and Other 52 50 4
Total $589 $392 50
- ----------------------------------------------------------------------
By Trading
Activity:
Foreign Exchange $260 $217 20
(B)
Derivative (C) 182 142 28
Fixed Income (D) 62 4 NM
Other 85 29 NM
Total $589 $392 50
- ----------------------------------------------------------------------
By Income Statement
Line:
Foreign Exchange $297 $205 45
Trading Account 198 90 NM
Other (E) 94 97 (3)
Total $589 $392 50
- ----------------------------------------------------------------------
(A) Reclassified to conform to the latest quarter's presentation.
(B) Foreign exchange activity includes foreign exchange spot,
forward, and option contracts.
(C) Derivative activity primarily includes interest rate and currency
swaps, options, financial futures, and equity and commodity
contracts.
(D) Fixed income activity principally includes debt instruments
including government and corporate debt as well as mortgage
assets.
(E) Primarily net interest revenue.
NM Not meaningful, as percentage equals or exceeds 100%.
23
<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 of
Income to Fixed Charges
24
<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 15, 1997
25
<TABLE>
<CAPTION>
CITICORP AND SUBSIDIARIES
CALCULATION OF RATIO OF INCOME TO FIXED CHARGES
(In Millions)
YEAR ENDED DECEMBER 31, THREE MONTHS ENDED
MARCH 31,
EXCLUDING INTEREST ON DEPOSITS: 1996 1995 1994 1993 1992 1997 1996
------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
FIXED CHARGES:
INTEREST EXPENSE (OTHER THAN
INTEREST ON DEPOSITS) 3,435 4,110 5,906 6,324 5,826 824 905
INTEREST FACTOR IN RENT EXPENSE 150 140 143 147 162 40 37
------ ------ ------ ------ ------ ------ ------
TOTAL FIXED CHARGES 3,585 4,250 6,049 6,471 5,988 864 942
------ ------ ------ ------ ------ ------ ------
INCOME:
NET INCOME 3,788 3,464 3,422 (A) 1,919 (B) 722 995 914
INCOME TAXES 2,285 2,121 1,189 941 696 609 560
FIXED CHARGES 3,585 4,250 6,049 6,471 5,988 864 942
------ ------ ------ ------ ------ ------ ------
TOTAL INCOME 9,658 9,835 10,660 9,331 7,406 2,468 2,416
====== ====== ====== ====== ====== ====== ======
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS 2.69 2.31 1.76 1.44 1.24 2.86 2.56
====== ====== ====== ====== ====== ====== ======
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE 12,409 13,012 14,902 16,121 16,327 3,224 3,091
INTEREST FACTOR IN RENT EXPENSE 150 140 143 147 162 40 37
------ ------ ------ ------ ------ ------ ------
TOTAL FIXED CHARGES 12,559 13,152 15,045 16,268 16,489 3,264 3,128
------ ------ ------ ------ ------ ------ ------
INCOME:
NET INCOME 3,788 3,464 3,422 (A) 1,919 (B) 722 995 914
INCOME TAXES 2,285 2,121 1,189 941 696 609 560
FIXED CHARGES 12,559 13,152 15,045 16,268 16,489 3,264 3,128
------ ------ ------ ------ ------ ------ ------
TOTAL INCOME 18,632 18,737 19,656 19,128 17,907 4,868 4,602
====== ====== ====== ====== ====== ====== ======
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS 1.48 1.42 1.31 1.18 1.09 1.49 1.47
====== ====== ====== ====== ====== ====== ======
</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.
<TABLE>
<CAPTION>
CITICORP AND SUBSIDIARIES
CALCULATION OF RATIO OF INCOME TO FIXED CHARGES
INCLUDING PREFERRED STOCK DIVIDENDS
(In Millions) YEAR ENDED DECEMBER 31, THREE MONTHS ENDED
MARCH 31,
EXCLUDING INTEREST ON DEPOSITS: 1996 1995 1994 1993 1992 1997 1996
------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
FIXED CHARGES:
INTEREST EXPENSE (OTHER THAN
INTEREST ON DEPOSITS) 3,435 4,110 5,906 6,324 5,826 824 905
INTEREST FACTOR IN RENT EXPENSE 150 140 143 147 162 40 37
DIVIDENDS--PREFERRED STOCK 261 553 505(A) 465 416 61 76
------ ------ ------ ------ ------ ------ ------
TOTAL FIXED CHARGES 3,846 4,803 6,554 6,936 6,404 925 1,018
------ ------ ------ ------ ------ ------ ------
INCOME:
NET INCOME 3,788 3,464 3,422 (B) 1,919 (C) 722 995 914
INCOME TAXES 2,285 2,121 1,189 941 696 609 560
FIXED CHARGES (EXCLUDING PREFERRED
STOCK DIVIDENDS) 3,585 4,250 6,049 6,471 5,988 864 942
------ ------ ------ ------ ------ ------ ------
TOTAL INCOME 9,658 9,835 10,660 9,331 7,406 2,468 2,416
====== ====== ====== ====== ====== ====== ======
RATIO OF INCOME TO FIXED CHARGES
EXCLUDING INTEREST ON DEPOSITS 2.51 2.05 1.63 1.35 1.16 2.67 2.37
====== ====== ====== ====== ====== ====== ======
INCLUDING INTEREST ON DEPOSITS:
FIXED CHARGES:
INTEREST EXPENSE 12,409 13,012 14,902 16,121 16,327 3,224 3,091
INTEREST FACTOR IN RENT EXPENSE 150 140 143 147 162 40 37
DIVIDENDS--PREFERRED STOCK 261 553 505 (A) 465 416 61 76
------ ------ ------ ------ ------ ------ ------
TOTAL FIXED CHARGES 12,820 13,705 15,550 16,733 16,905 3,325 3,204
------ ------ ------ ------ ------ ------ ------
INCOME:
NET INCOME 3,788 3,464 3,422 (B) 1,919 (C) 722 995 914
INCOME TAXES 2,285 2,121 1,189 941 696 609 560
FIXED CHARGES (EXCLUDING PREFERRED
STOCK DIVIDENDS) 12,559 13,152 15,045 16,268 16,489 3,264 3,128
------ ------ ------ ------ ------ ------ ------
TOTAL INCOME 18,632 18,737 19,656 19,128 17,907 4,868 4,602
====== ====== ====== ====== ====== ====== ======
RATIO OF INCOME TO FIXED CHARGES
INCLUDING INTEREST ON DEPOSITS 1.45 1.37 1.26 1.14 1.06 1.46 1.44
====== ====== ====== ====== ====== ====== ======
</TABLE>
(A) CALCULATED ON A BASIS OF AN ASSUMED TAX RATE OF 29% FOR 1994.
(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.
