U.S. 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 19, 1999
---------------------------
Citigroup Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-9924 52-1568099
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
153 East 53rd Street, New York, New York 10043
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(Address of principal executive offices) (Zip Code)
(212) 559-1000
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(Registrant's telephone number, including area code)
<PAGE>
Citigroup Inc.
Current Report on Form 8-K
Item 5. Other Events.
On April 19, 1999 Citigroup Inc. reported record core income of $2.42
billion for the first quarter ended March 31, 1999, up 12% from $2.16 billion in
the comparable 1998 period. Core income was $1.07 per basic share and $1.04 per
diluted share, up 14% and 16%, respectively, from $0.94 per basic share and
$0.90 per diluted share in the first quarter of 1998. Business income rose 32%
over the prior year excluding income from investment activities, which was
particularly strong in the 1998 quarter. The Company's outstanding performance
reflected record earnings and revenue in the Global Consumer business, a sharp
turnaround in the Global Corporate and Investment Bank highlighted by record
results at Salomon Smith Barney, and solid earnings growth from Asset
Management. Core income increased more than 72% from that reported in the fourth
quarter of 1998, driven by a 146% improvement in earnings from the Global
Corporate and Investment Bank, as a result of a combination of progress in the
integration of Citigroup's predecessor companies and an improved market
environment. Return on common equity, at 24%, exceeded the Company's goal of
20%.
Strong momentum across all businesses contributed to a 15% increase in
business revenues from the 1998 first quarter to a record $14.5 billion, led by
21% growth in the Global Consumer business. Asset Management revenues increased
16%, while the Global Corporate and Investment Bank recorded a 10% increase.
Net income for the period was $2.36 billion, or $1.04 per basic share and
$1.01 per diluted share, compared to $2.16 billion, or $0.94 per basic share and
$0.90 per diluted share in the first quarter of 1998. Net income in 1999
includes a net impact of $(53) million from accounting changes and
restructuring-related items.
<PAGE>
The Company's Tier I capital ratio is 8.8%. Citigroup's total assets were
approximately $690 billion at March 31, 1999. Citigroup was recently ranked
number two in the Forbes Super 100 based on a composite ranking of sales, net
profit, assets and market value.
Results for all periods have been restated to reflect changes in capital
and tax allocations among the segments to conform the policies of each of the
predecessor companies.
GLOBAL CONSUMER
1st Quarter Core Income: $1.05 Billion, Up 33% from $790 Million in 1998 Period
Core income for the Global Consumer business, which includes North
American Banking/Lending, International and the personal insurance lines, grew
33% to a record $1.05 billion in the quarter, driven by strong performances from
virtually all business lines and a sizable 75% earnings increase from North
American cards.
Productivity and expense reduction programs contributed to strong earnings
growth. Controllable expenses, excluding increased marketing expenditures and
the effect of acquisitions, are down since programs were initiated in the third
quarter of 1998, and the group is well on its way to achieving the expense goals
set for the end of this year. Consistent with this, full time equivalent
positions are down approximately 4,100 since the third quarter, excluding
acquisitions. As these declines were accomplished, substantial investments were
made in numerous new initiatives, including the expansion of the Japanese and
Eastern European franchise, and accelerated credit card expansion throughout
Western Europe.
During the quarter, the company announced four acquisitions to strengthen
several business lines. Citibank acquired Mellon Bank's credit card business,
with $1.9 billion in credit card receivables, and Financiero Atlas, a Chilean
consumer finance company with 65 branches and $460 million in assets. Citibank
also announced the acquisition of Source One Mortgage, an originator of FHA/VA
mortgage products. Commercial Credit acquired 128 consumer finance branch
offices and a $519 million loan portfolio from Associates First Capital.
North America Consumer
o Banking/Lending core income rose 69% year-over-year on a 29% growth in
revenues:
-- Core income for Cards increased 75% to $268 million in the quarter.
Revenues increased 40% as a result of pricing increases and 48%
growth in receivables to $69 billion, driven by the UCS acquisition
and core business improvement. Credit experience continued to
improve, with net charge-offs in the U.S. bankcard portfolio falling
to 4.72%.
-- Commercial Credit's core income grew 37% to $81 million in the
quarter, with revenues rising 22%, to $376 million. Receivables grew
28% from the 1998 first quarter due to healthy business flow at
Commercial Credit branches, cross-selling of Commercial Credit
products through Primerica distribution
<PAGE>
channels and the acquisition of certain Associates First Capital
branches. The total number of Commercial Credit branches rose to
1,143 from 1,023 in the first quarter of 1998.
-- Citibanking core income surged 200% to $75 million in the quarter.
Successful implementation of cost reduction initiatives drove a 12%,
or $44 million, reduction in fixed expenses (which exclude
advertising and variable compensation). Revenues rose 7% on
continued increases in accounts and deposit volumes and sales of
investment products.
-- Core income from Mortgage Banking, including the Student Loan
business, increased 20% to $60 million from the prior year quarter.
Higher student loan volume and mortgage originations, continued
improvements in credit quality in the mortgage portfolio, and flat
expenses contributed to positive overall trends.
o The Insurance sector recorded solid growth across all business units:
-- Travelers Life & Annuity's core income rose 20% from the prior year
period to $147 million, with earnings up 19% from the fourth
quarter, as increased business volume offset lower levels of
investment income versus the prior year periods. The business
achieved double-digit growth in annuity account balances and life
and long-term care premiums, as well as strong momentum from
cross-selling initiatives.
-- Primerica core income rose 16% to $110 million as a result of growth
in life insurance in-force and record contributions from
cross-selling variable annuities and real estate-secured loans. The
proportion of Primerica's income related to cross-selling was
approximately 22% in the first quarter of 1999. Results continued to
benefit from disciplined expense management.
-- Travelers Property Casualty's Personal Lines core income of $83
million was up slightly from the prior year quarter, as a 16%
increase in earned premiums offset modest medical cost increases and
less favorable prior-year development. The expense ratio, adjusted
for a reinsurance transaction, improved to 26.6% from 28.0%,
reflecting greater efficiency through the leveraging of the
business' expense base. Net written premiums, adjusted for a
reinsurance transaction, increased 13%, driven by increased
production across all lines through both independent and new
distribution channels.
International Consumer
Earnings from the International Consumer business increased 20% to $281
million in the quarter, as accounts increased 19% and deposits grew 19% from the
prior year period:
o Asia Pacific region core income rose 23% to $102 million on a 23% increase
in revenues, with accounts and customer deposits growing at rates in
excess of 20% across the region, and particularly strong performance in
Japan. The provision for credit losses increased $38 million from the
prior year period, the result of economic conditions and increased asset
volumes.
o Core income for Europe, Middle East, Africa (EMEA) rose 45% to $74
million, led by strong performance in Western Europe, particularly in
volumes from both credit and investment products in Germany.
<PAGE>
o Latin America core income increased 12% to $48 million from the comparable
1998 quarter, as the positive impact of recent acquisitions and a rebound
in earnings from Credicard, a 33%-owned Brazilian card affiliate, offset
weaker credit experience.
o The Global Private Bank, which serves high net worth individuals around
the world, recorded core income of $57 million, about level with first
quarter 1998. Revenue growth, particularly in the U.S., was offset by the
absence of credit recoveries that positively impacted first quarter 1998
results.
e-Citi
The net loss in e-Citi, which represents the firm's investment in global
electronic commerce research and development and business activities, increased
20% to $36 million for the first quarter. Higher spending for new product
development and e-commerce pilots globally offset increased earnings from
existing businesses such as Global Debit Cards.
Other
Other Consumer business items, which include unallocated marketing and
staff expenses, increased by $19 million from last year's first quarter to a net
loss of $20 million, but improved $25 million from fourth quarter 1998. Outlays
for new global advertising, marketing and distribution development initiatives
more than offset reductions in fixed expenses.
GLOBAL CORPORATE AND INVESTMENT BANK
1st Quarter Core Income $1.36 Billion, Up 31% from $1.04 Billion in 1998 Period
Results for the Global Corporate and Investment Bank rebounded sharply in
the first quarter, rising 31% to $1.36 billion over the comparable quarter in
1998 and more than doubling the 1998 fourth quarter. The rebound was most
notable at Salomon Smith Barney (SSB), which posted record earnings on total
revenues of $3.3 billion while reducing risk. SSB's earnings benefited from
continued strong results in the retail business, record fixed income
underwriting and improved trading revenues. Earnings from Emerging Markets and
Global Relationship Banking (GRB) also showed particularly strong growth.
The Global Corporate and Investment Bank continued to build on the
collaborative opportunities between SSB and Citibank's global corporate bank, as
underscored by the completion of the largest corporate bond deal of all time,
the $8 billion AT&T bond offering. Over 160 collaborative deals resulting from
joint SSB/Corporate Bank customer calls have been closed since last April, with
60 of these completed in the first quarter alone. SSB Financial Consultants
generated referrals for approximately $200 million in Citibank mortgages in the
first quarter, demonstrating the potential for retail cross-selling and
increased retention of customer assets.
During the quarter, Nikko Salomon Smith Barney, the institutional and
investment banking joint venture between Salomon Smith Barney and Nikko
Securities, began operations as a net contributor to earnings. In February,
Institutional Investor ranked Citigroup the top derivatives dealer in its annual
survey of market users. Citibank also continues to be the number one foreign
exchange dealer, as ranked by Euromoney, and the number one cash management
provider, as ranked by Corporate Finance magazine. Salomon Smith Barney also
took the
<PAGE>
number one positions in the Securities Data Corporation League Tables in
municipal bond underwriting and mortgage and asset backed debt. SSB also surged
into the top five in both Eurobond and Euromarket issues, from #11 in these
categories in the first quarter of 1998.
During the quarter, SSB continued to enhance its state-of-the-art website,
through which 300,000 clients currently receive on-line account access and
research. SSB plans to roll out on-line trading capabilities later this year.
Travelers Property Casualty's Commercial Lines core income increased 11%
relative to prior year, despite continued challenges in its operating
environment.
o Salomon Smith Barney reported first quarter core business income of $648
million, a 46% increase over the prior year period, on revenues of $3.3
billion versus $2.9 billion last year. The firm's strong growth reflected
a 13% rise in commissions to $900 million, and a 6% increase in investment
banking revenues to $655 million, predominately from record high grade
debt underwritings. Revenue also includes $974 million in principal
transactions, up 25% from $779 million in the prior year quarter, as
increases in institutional global fixed income and global equities
transactions offset declines in global arbitrage and commodity trading.
Asset management fees rose to $377 million as a result of increased client
assets under management. Non-compensation expenses as a percent of net
revenues decreased to 16.3% from 18.0% in the first quarter of 1998 and
25.8% in the fourth quarter of 1998. Compensation and benefits as a
percentage of net revenues was 53.7% for the first quarter of 1999, down
from 57.6% in the comparable 1998 period and 73.4% in the fourth quarter
of 1998. Including Asset Management, the compensation and benefits ratio
for the quarter dropped to 51.4%, comparable to that of other
broker-dealers.
o Emerging Markets core income of $321 million for the 1999 first quarter
reflected increases of 22% and 37% from the first and fourth quarters of
1998, respectively. Revenues increased 18% from the first quarter of 1998,
and 16% from the fourth quarter, primarily driven by higher trading
revenues, as well as lending and trade finance. Expenses rose 5% from the
1998 first quarter, reflecting ongoing spending to expand Citigroup's
emerging market franchise. Credit write-offs increased $53 million to $115
million from the first quarter of 1998, and $30 million from the fourth
quarter of 1998, primarily as a result of higher losses in Asia.
o Global Relationship Banking reported first quarter core income of $197
million, a substantial improvement over fourth quarter 1998 core income of
$102 million, and 25% above the $158 million reported in the comparable
first quarter. Revenues increased 10% versus the prior year first quarter,
reflecting strong trading results and double-digit revenue growth in
Transaction Services. Expenses were 2% below the prior quarter, but 6%
higher than the first quarter of last year, due to increased technology
spending, including EMU and Year 2000 expense, and higher incentive
compensation.
o Travelers Property Casualty's Commercial Lines core income increased 11%
to $189 million, reflecting favorable prior year loss development and
continued expense reductions, which were somewhat offset by the continued
depopulation of the involuntary workers' compensation market and higher
weather-related losses. Net written premiums were down 8% from the prior
year period reflecting a disciplined approach to underwriting
<PAGE>
and risk management. The statutory combined ratio, at 104.7%, reflected an
improvement from the 106.8% reported in the first quarter of 1998.
ASSET MANAGEMENT
1st Quarter Core Income: $80 Million, Up 16% from $69 Million in 1998 Period
SSB Citi Asset Management Group's core income increased 16% to $80 million
in the first quarter of 1999, as revenue growth offset increased expenses from
continued investments in the businesses' infrastructure and investment research.
Revenues increased 16% in the first quarter to $354 million, reflecting strong
growth in assets under management. Expenses grew 15% from the first quarter of
1998, reflecting global business growth and efforts to build the Company's
investment research and quantitative investment capabilities. The segment's
pretax profit margin for the quarter increased slightly to 37.6%, from 37.1% in
the first quarter of 1998.
Assets under management rose 20% from the year-ago quarter to $338
billion, as growth continued across all product categories. Institutional
managed account assets grew to $93 billion, up 22% from the 1998 first quarter.
Money fund and long-term mutual fund assets grew by 27% and 13%, respectively.
Contributing to money fund growth was a $3.6 billion increase in institutional
liquidity funds in the first quarter, the result of increased selling efforts
through Global Relationship Banking. Capitalizing on Japan's Big Bang, the Group
raised $600 million in Japan through sales of its new CitiFunds mutual funds and
sales of Salomon Brothers mutual funds in non-proprietary channels. Also in the
quarter, CitiEuroland funds were introduced through the Citibank Europe Consumer
Bank.
The amount of proprietary mutual funds sold through Primerica totaled $408
million in the quarter and accounted for 64% of Primerica's U.S. mutual fund
sales versus 59% in the first quarter of 1998. Sales of the Group's proprietary
funds through SSB's retail channel grew to 36% of all of the brokerage
operation's mutual fund sales, up from 28% in the first quarter of the previous
year. The Group's penetration into the SSB channel also increased in the private
client separately managed account category, as sales grew by more than 200% over
the prior year first quarter.
CORPORATE/OTHER
1st Quarter Core Loss: $162 Million Versus Core Loss
of $136 Million in 1998 Period
Corporate/Other includes net treasury results, corporate staff and similar
expenses. The increased loss over the previous year principally reflects the
absence of gains on dispositions of certain corporate assets recorded in the
first quarter of 1998, partially offset by reduced staff expense.
INVESTMENT ACTIVITIES
1st Quarter Core Income: $93 Million Versus $402 Million in 1998 Period
Declines in earnings from Investment Activities for the first quarter
reflect reduced LDC debt sales, lower proprietary investment gains and lower
insurance portfolio gains. This segment's $70 billion investment portfolio
consists mainly of fixed income securities with average quality ratings of A+/A1
and also includes proprietary equity investments. The company's insurance
companies hold the majority of the portfolio. The fixed income securities held
in the portfolio, including short-term investments, have an effective duration
of 4.9 years.
<PAGE>
SHARE REPURCHASE
During the first quarter of 1999, Citigroup repurchased 18.9 million
shares of its common stock for a total cost of $1.08 billion, to offset the
dilution from the issuance of shares under incentive compensation plans. The
weighted average common shares for basic earnings per share were 2,226.8 million
in the quarter and for diluted earnings per share were 2,293.3 million.
# # #
<PAGE>
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Citigroup Segment Income First Quarter
------------------ %
(In Millions of Dollars) 1999 1998 Change
- --------------------------------------------------------------------------------
Global Consumer
Citibanking North America ................. $ 75 $ 25 200
Mortgage Banking .......................... 60 50 20
Cards ..................................... 268 153 75
Consumer Finance Services ................. 81 59 37
------------------
Banking/Lending ............................. 484 287 69
------------------
Travelers Life & Annuity .................. 147 122 20
Primerica Financial Services .............. 110 95 16
Personal Lines (A) ........................ 83 82 1
------------------
Insurance ................................... 340 299 14
------------------
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Total North America ........................... 824 586 41
------------------
Europe, Middle East, & Africa ............... 74 51 45
Asia Pacific ................................ 102 83 23
Latin America ............................... 48 43 12
Global Private Bank ......................... 57 58 (2)
------------------
Total International ........................... 281 235 20
------------------
e-Citi ........................................ (36) (30) 20
Other ......................................... (20) (1) 1,900
------------------
Total Global Consumer ......................... 1,049 790 33
------------------
Global Corporate and Investment Bank
Salomon Smith Barney .......................... 648 443 46
Emerging Markets .............................. 321 264 22
Global Relationship Banking ................... 197 158 25
Commercial Lines (A) .......................... 189 171 11
------------------
Total Global Corporate and Investment Bank .... 1,355 1,036 31
------------------
------------------
SSB Citi Asset Management Group ............... 80 69 16
------------------
Corporate/Other ............................... (162) (136) 19
------------------
Business Income ............................... 2,322 1,759 32
------------------
------------------
Investment Activities ......................... 93 402 (77)
------------------
------------------
Core Income ................................... 2,415 2,161 12
------------------
Restructuring/Merger Items (B) ................ 74 -- NM
Cumulative Effect of Accounting Changes (C) ... (127) -- NM
------------------
Net Income .................................... $ 2,362 $ 2,161 9
================================================================================
(A) In the aggregate, these represent Citigroup's share of Travelers Property
Casualty Corp. results.
(B) Includes a credit for the reversal of the 1997 charge of $125 million and
restructuring-related items of $51 million.
(C) Refers to adoption of Statement of Position "SOP" 97-3, "Accounting by
Insurance and Other Enterprises for Insurance-Related Assessments" of
($135) million; adoption of SOP 98-7, "Deposit Accounting: Accounting for
Insurance and Reinsurance Contracts That Do Not Transfer Insurance Risk"
of $23 million; and the adoption of SOP 98-5, "Reporting on the Costs of
Start-Up Activities" of ($15) million.
NM Not meaningful.
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<PAGE>
CITIGROUP - QUARTERLY FINANCIAL DATA SUPPLEMENT
citigroup[LOGO]
Citigroup provides a broad array of financial products and services to 100
million customers in 100 countries around the world.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1Q 1999 vs.
(in millions, except per share amounts) 1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
--------- --------- --------- --------- --------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Core Income $ 2,161 $ 2,049 $ 729 $ 1,403 $ 2,415 12%
Restructuring / Merger Items -- 191 -- (726) 74
Cumulative Effect of Accounting Changes -- -- -- -- (127)
--------- --------- --------- --------- ---------
Net Income $ 2,161 $ 2,240 $ 729 $ 677 $ 2,362 9%
========= ========= ========= ========= =========
Basic Earnings Per Share:
Core Income $ 0.94 $ 0.89 $ 0.30 $ 0.61 $ 1.07 14%
========= ========= ========= ========= =========
Net Income $ 0.94 $ 0.97 $ 0.30 $ 0.28 $ 1.04 11%
========= ========= ========= ========= =========
Weighted average common shares
applicable to Basic EPS 2,243.3 2,244.0 2,248.3 2,233.4 2,226.8
========= ========= ========= ========= =========
Preferred Dividends - Basic $ 63 $ 58 $ 50 $ 45 $ 40
========= ========= ========= ========= =========
Diluted Earnings Per Share:
Core Income $ 0.90 $ 0.86 $ 0.30 $ 0.60 $ 1.04 16%
========= ========= ========= ========= =========
Net Income $ 0.90 $ 0.94 $ 0.30 $ 0.28 $ 1.01 12%
========= ========= ========= ========= =========
Adjusted weighted average common shares
applicable to Diluted EPS 2,328.6 2,330.9 2,320.7 2,290.3 2,293.3
========= ========= ========= ========= =========
Preferred Dividends - Diluted $ 57 $ 52 $ 44 $ 39 $ 37
========= ========= ========= ========= =========
Common Shares Outstanding, at period end 2,280.8 2,280.5 2,275.5 2,258.0 2,253.5
========= ========= ========= ========= =========
Tier 1 Capital Ratio 8.38% 8.46% 8.69% 8.68% 8.80%*
========= ========= ========= ========= =========
Total Capital Ratio 10.97% 11.00% 11.28% 11.43% 11.50%*
========= ========= ========= ========= =========
Leverage Ratio 5.67% 5.65% 5.73% 6.03% 6.20%*
========= ========= ========= ========= =========
Total Assets, at period end (in billions) $ 738.8 $ 750.8 $ 701.3 $ 668.6 $ 689.5*
========= ========= ========= ========= =========
Stockholders' Equity, at period end (in billions) $ 42.8 $ 43.9 $ 43.1 $ 42.7 $ 44.0*
========= ========= ========= ========= =========
Stockholders' Equity and Trust Securities,
at period end (in billions) $ 46.4 $ 47.7 $ 46.9 $ 47.0 $ 48.9*
========= ========= ========= ========= =========
Book Value Per Share, at period end $ 17.45 $ 18.06 $ 17.92 $ 17.89 $ 18.57*
========= ========= ========= ========= =========
Return on Common Equity (Net Income) 22.0% 21.8% 6.6% 6.2% 23.0%*
========= ========= ========= ========= =========
Return on Common Equity (Core Income) 21.4% 19.4% 6.5% 13.0% 23.6%*
========= ========= ========= ========= =========
Return on Common Equity (Core Income),
excluding FAS 115 22.4% 20.2% 6.7% 13.4% 24.3%*
========= ========= ========= ========= =========
</TABLE>
* Preliminary
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<PAGE>
CITIGROUP -- SEGMENT NET REVENUES
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
-------- -------- -------- -------- -------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Global Consumer:
Banking / Lending
Citibanking North America $ 485 $ 527 $ 498 $ 502 $ 521 7%
Mortgage Banking 154 152 160 153 169 10%
Cards 1,415 1,825 1,930 2,045 1,988 40%
Consumer Finance Services 309 326 342 361 376 22%
-------- -------- -------- -------- --------
Total Banking / Lending 2,363 2,830 2,930 3,061 3,054 29%
Insurance
Travelers Life and Annuity 704 773 719 833 771 10%
Primerica Financial Services 400 420 413 421 432 8%
Personal Lines 868 899 924 975 983 13%
-------- -------- -------- -------- --------
Total Insurance 1,972 2,092 2,056 2,229 2,186 11%
International
Europe, Middle East and Africa 471 496 513 541 534 13%
Asia Pacific 423 457 460 512 519 23%
Latin America 354 370 431 445 466 32%
Global Private Bank 264 285 285 294 273 3%
-------- -------- -------- -------- --------
Total International 1,512 1,608 1,689 1,792 1,792 19%
e-Citi 30 34 38 47 54 80%
Other 26 22 23 27 31 19%
-------- -------- -------- -------- --------
Total Global Consumer 5,903 6,586 6,736 7,156 7,117 21%
-------- -------- -------- -------- --------
Global Corporate and Investment Bank:
Salomon Smith Barney 2,918 2,523 685 2,207 3,341 14%
Emerging Markets 957 973 721 975 1,134 18%
Global Relationship Banking 990 1,151 827 947 1,091 10%
Commercial Lines 1,619 1,584 1,604 1,674 1,534 (5%)
-------- -------- -------- -------- --------
Total Global Corporate and
Investment Bank 6,484 6,231 3,837 5,803 7,100 10%
-------- -------- -------- -------- --------
SSB Citi Asset Management Group 305 309 318 324 354 16%
-------- -------- -------- -------- --------
Corporate / Other (53) (71) (63) (6) (71) 34%
-------- -------- -------- -------- --------
================================================================================================
Total Business Revenues 12,639 13,055 10,828 13,277 14,500 15%
================================================================================================
Investment Activities 619 491 169 45 158 (74%)
================================================================================================
Total Adjusted Revenues $ 13,258 $ 13,546 $ 10,997 $ 13,322 $ 14,658 11%
================================================================================================
</TABLE>
<PAGE>
CITIGROUP -- SEGMENT CORE INCOME
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
------- ------- ------- ------- ------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Global Consumer:
Banking / Lending
Citibanking North America $ 25 $ 36 $ 28 $ 23 $ 75 200%
Mortgage Banking 50 50 57 55 60 20%
Cards 153 136 218 290 268 75%
Consumer Finance Services 59 60 72 73 81 37%
------- ------- ------- ------- -------
Total Banking / Lending 287 282 375 441 484 69%
Insurance
Travelers Life and Annuity 122 132 125 124 147 20%
Primerica Financial Services 95 103 99 103 110 16%
Personal Lines 82 81 68 88 83 1%
------- ------- ------- ------- -------
Total Insurance 299 316 292 315 340 14%
International
Europe, Middle East and Africa 51 56 69 61 74 45%
Asia Pacific 83 86 101 117 102 23%
Latin America 43 37 42 38 48 12%
Global Private Bank 58 64 65 61 57 (2%)
------- ------- ------- ------- -------
Total International 235 243 277 277 281 20%
e-Citi (30) (37) (33) (43) (36) 20%
Other (1) (12) (28) (45) (20) 1900%
------- ------- ------- ------- -------
Total Global Consumer 790 792 883 945 1,049 33%
------- ------- ------- ------- -------
Global Corporate and Investment Bank:
Salomon Smith Barney 443 348 (396) 13 648 46%
Emerging Markets 264 245 8 234 321 22%
Global Relationship Banking 158 238 (8) 102 197 25%
Commercial Lines 171 174 177 201 189 11%
------- ------- ------- ------- -------
Total Global Corporate and
Investment Bank 1,036 1,005 (219) 550 1,355 31%
------- ------- ------- ------- -------
SSB Citi Asset Management Group 69 69 68 51 80 16%
------- ------- ------- ------- -------
Corporate / Other (136) (133) (103) (158) (162) 19%
------- ------- ------- ------- -------
===========================================================================================
Total Business Income 1,759 1,733 629 1,388 2,322 32%
===========================================================================================
Investment Activities 402 316 100 15 93 (77%)
===========================================================================================
Total Core Income $ 2,161 $ 2,049 $ 729 $ 1,403 $ 2,415 12%
===========================================================================================
</TABLE>
<PAGE>
GLOBAL CONSUMER - Banking/Lending
CITIBANKING NORTH AMERICA
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
----- ----- ----- ----- ----- -----------------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 485 $ 527 $ 498 $ 502 $ 521 7%
Adjusted Operating Expense 408 433 413 431 363 (11%)
Provision for Loan Losses 31 30 28 29 27 (13%)
----- ----- ----- ----- -----
Core Income Before Taxes 46 64 57 42 131 185%
Income Taxes 21 28 29 19 56 167%
----- ----- ----- ----- -----
Core Income $ 25 $ 36 $ 28 $ 23 $ 75 200%
===== ===== ===== ===== =====
Average Assets (in billions of dollars) $ 10 $ 10 $ 10 $ 10 $ 10 --
===== ===== ===== ===== =====
Return on Assets 1.01% 1.44% 1.11% 0.91% 3.04%
===== ===== ===== ===== =====
Average Loans (in billions of dollars) $ 8.4 $ 8.3 $ 8.3 $ 8.2 $ 8.1 (4%)
Average Customer Deposits
(in billions of dollars) $38.9 $39.4 $39.7 $40.4 $41.6 7%
Accounts (In millions) 5.9 6.0 6.1 6.2 6.3 5%
Net Credit Loss Ratio 1.51% 1.44% 1.38% 1.55% 1.35%
Loans 90+Days Past Due:
In millions of dollars $ 129 $ 119 $ 117 $ 87 $ 107
% 1.51% 1.39% 1.28% 1.04% 1.33%
</TABLE>
<PAGE>
GLOBAL CONSUMER - Banking/Lending
MORTGAGE BANKING
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
----- ----- ----- ----- ----- -----------------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 154 $ 152 $ 160 $ 153 $ 169 10%
Adjusted Operating Expense 59 61 62 60 59 --
Provision for Loan Losses 13 9 3 (5) 3 (77%)
----- ----- ----- ----- -----
Core Income Before Taxes 82 82 95 98 107 30%
Income Taxes 32 32 38 38 42 31%
Minority Interest, Net of Tax -- -- -- 5 5 NM
----- ----- ----- ----- -----
Core Income $ 50 $ 50 $ 57 $ 55 $ 60 20%
===== ===== ===== ===== =====
Average Assets (in billions of dollars) $ 25 $ 25 $ 25 $ 26 $ 28 12%
===== ===== ===== ===== =====
Return on Assets 0.81% 0.80% 0.90% 0.84% 0.87%
===== ===== ===== ===== =====
Accounts (in millions) (1) 2.5 2.5 2.7 2.8 2.8 12%
Average Loans (in billions of
dollars) (1), (2) $23.5 $23.7 $24.0 $24.6 $26.6 13%
Mortgage Originations (in billions
of dollars) $ 2.9 $ 4.0 $ 4.2 $ 5.0 $ 3.8 31%
Net Credit Loss Ratio 0.42% 0.33% 0.29% 0.27% 0.20%
Loans 90+ Days Past Due: $ 688 $ 634 $ 623 $ 625 $ 610
In millions of dollars 2.91% 2.67% 2.69% 2.44% 2.29%
%
</TABLE>
(1) Includes Student Loans.
(2) Includes loans held for sale.
NM Not meaningful
<PAGE>
GLOBAL CONSUMER - Banking/Lending
CARDS (1)
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
------- ------- ------- ------- ------- ------------------
<S> <C> <C> <C> <C> <C> <C>
Adjusted Revenues $ 1,415 $ 1,825 $ 1,930 $ 2,045 $ 1,988 40%
Adjusted Operating Expense 451 721 737 776 748 66%
Provision for Loan Losses (2) 717 885 846 805 816 14%
------- ------- ------- ------- -------
Core Income Before Taxes 247 219 347 464 424 72%
Income Taxes 94 83 129 174 156 66%
------- ------- ------- ------- -------
Core Income $ 153 $ 136 $ 218 $ 290 $ 268 75%
======= ======= ======= ======= =======
Average Assets (in billions
of dollars) $ 23 $ 30 $ 28 $ 31 $ 30 30%
======= ======= ======= ======= =======
Return on Assets 2.70% 1.82% 3.09% 3.71% 3.62%
======= ======= ======= ======= =======
U.S. BANKCARDS DATA (3):
(in billions of dollars)
End of Period Managed Receivables $ 46.8 $ 62.0 $ 63.8 $ 69.6 $ 69.4 48%
Total Accounts (in millions) 25.6 39.4 39.7 40.5 41.4 62%
Charge Volume $ 25.3 $ 35.4 $ 37.7 $ 42.2 $ 36.8 45%
End of Period Loans:
On Balance Sheet $ 16.5 $ 17.3 $ 19.8 $ 21.9 $ 19.4 18%
Securitized 27.8 41.5 40.6 44.3 46.7 68%
Held for Sale 2.0 2.5 2.6 2.9 2.9 45%
------- ------- ------- ------- -------
Total $ 46.3 $ 61.3 $ 63.0 $ 69.1 $ 69.0 49%
======= ======= ======= ======= =======
Average Loans:
On Balance Sheet $ 17.3 $ 21.0 $ 19.3 $ 20.9 $ 20.2 17%
Securitized 27.6 37.0 40.2 41.5 44.3 61%
Held for Sale 2.0 2.5 2.5 2.7 2.9 45%
------- ------- ------- ------- -------
Total $ 46.9 $ 60.5 $ 62.0 $ 65.1 $ 67.4 44%
======= ======= ======= ======= =======
Write-offs (in millions of dollars):
On Balance Sheet $ 214 $ 271 $ 229 $ 222 $ 196 (8%)
Securitized 431 544 542 536 556 29%
Held for Sale 31 37 34 32 32 3%
------- ------- ------- ------- -------
Total $ 676 $ 852 $ 805 $ 790 $ 784 16%
======= ======= ======= ======= =======
Coincident Net Credit Loss Rate 5.85% 5.65% 5.15% 4.82% 4.72%
12 Month Lagged Net Credit Loss
Rate (ex-UCS) 5.98% 5.92% 5.43% 5.30% 5.34%
90+ Days Past Due:
In millions of dollars $ 855 $ 956 $ 939 $ 1,001 $ 1,007
% 1.85% 1.56% 1.49% 1.45% 1.46%
</TABLE>
(1) Includes U.S. Bankcards, Diners Club and Travelers Bank. The acquisition
of the Universal Card (UCS) was completed in the 1998 second quarter.
(2) On a managed basis.
(3) Includes U.S. Bankcards and Travelers Bank.
<PAGE>
GLOBAL CONSUMER - Banking/Lending
CONSUMER FINANCE SERVICES
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
--------- --------- --------- --------- --------- -----------------
<S> <C> <C> <C> <C> <C> <C>
NET REVENUES * $ 309 $ 326 $ 342 $ 361 $ 376 22%
CORE INCOME $ 59 $ 60 $ 72 $ 73 $ 81 37%
Net receivables:
Real estate-secured loans (1) $ 5,324.7 $ 5,673.4 $ 6,084.8 $ 6,659.5 $ 7,179.5 35%
Personal loans (2) 3,868.9 4,007.4 4,134.3 4,275.2 4,647.2 20%
Sales finance and other 866.3 893.7 936.4 990.8 1,033.8 19%
--------- --------- --------- --------- ---------
Consumer finance receivables,
net of unearned finance charges 10,059.9 10,574.5 11,155.5 11,925.5 12,860.5 28%
Accrued interest receivable 75.8 79.1 87.3 99.2 99.3 31%
Allowance for credit losses (294.6) (317.3) (334.4) (369.7) (388.7) 32%
--------- --------- --------- --------- ---------
Consumer finance receivables, net $ 9,841.1 $10,336.3 $10,908.4 $11,655.0 $12,571.1 28%
========= ========= ========= ========= =========
Number of offices 1,023 1,005 993 980 1,143 12%
Average yield 14.91% 14.94% 14.93% 14.74% 14.38%
Average net interest margin 8.35% 8.43% 8.48% 8.57% 8.45%
Charge-off rate 2.93% 2.78% 2.61% 2.67% 2.38%
60+ days past due as % of receivables 1.82% 1.74% 1.85% 1.90% 1.78%
Reserves as % of net receivables 2.93% 3.00% 3.00% 3.10% 3.02%
(1) Includes fully secured
$.M.A.R.T. receivables, as follows: $ 2,052.8 $ 2,272.8 $ 2,432.1 $ 2,604.6 $ 2,817.6 37%
(2) Includes $.A.F.E. and partially
secured $.M.A.R.T. receivables,
as follows: $ 359.8 $ 351.3 $ 345.0 $ 345.6 $ 337.9 (6%)
</TABLE>
* Revenues (excluding realized gains), net of interest expense.
<PAGE>
GLOBAL CONSUMER - Insurance
TRAVELERS LIFE AND ANNUITY - Page 1*
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
----------- ----------- ----------- ----------- ----------- -----------------
<S> <C> <C> <C> <C> <C> <C>
NET REVENUES** $ 704 $ 773 $ 719 $ 833 $ 771 10%
CORE INCOME $ 122 $ 132 $ 125 $ 124 $ 147 20%
Pre-tax contribution by source:
Deferred and payout annuities $ 87.3 $ 89.2 $ 82.1 $ 87.9 $ 113.4 30%
Group annuities 31.5 28.3 36.4 24.1 37.3 18%
Life and long term care insurance 37.9 39.3 34.6 42.6 40.2 6%
Other (includes run-off and return
on excess capital) 24.1 37.6 37.6 33.1 30.2 25%
----------- ----------- ----------- ----------- -----------
Total $ 180.8 $ 194.4 $ 190.7 $ 187.7 $ 221.1 22%
=========== =========== =========== =========== ===========
Deferred annuities:
Number of annuities in force (000):
Fixed 415.3 408.4 402.6 399.8 392.4 (6%)
Variable 430.7 463.8 496.2 529.6 560.8 30%
----------- ----------- ----------- ----------- -----------
Total 846.0 872.2 898.8 929.4 953.2 13%
=========== =========== =========== =========== ===========
Number of annuities issued (000):
Fixed 5.5 4.8 3.7 4.0 3.9 (29%)
Variable 42.3 42.6 41.4 43.0 47.2 12%
----------- ----------- ----------- ----------- -----------
Total 47.8 47.4 45.1 47.0 51.1 7%
=========== =========== =========== =========== ===========
Net written premiums & deposits:
Fixed $ 264.7 $ 215.6 $ 217.4 $ 210.4 $ 194.2 (27%)
Variable 646.9 679.8 757.5 808.0 975.7 51%
----------- ----------- ----------- ----------- -----------
Total $ 911.6 $ 895.4 $ 974.9 $ 1,018.4 $ 1,169.9 28%
=========== =========== =========== =========== ===========
Policyholder account balances &
benefit reserves: (1)
Fixed $ 7,890.1 $ 7,863.4 $ 7,877.1 $ 7,915.1 $ 7,839.3 (1%)
Variable 10,401.2 11,148.5 10,601.1 12,951.4 14,172.9 36%
----------- ----------- ----------- ----------- -----------
Total $ 18,291.3 $ 19,011.9 $ 18,478.2 $ 20,866.5 $ 22,012.2 20%
=========== =========== =========== =========== ===========
Payout annuities:
Net written premiums & deposits $ 81.0 $ 106.8 $ 76.1 $ 165.1 $ 88.0 9%
Policyholder account balances
& benefit reserves $ 4,558.1 $ 4,602.2 $ 4,626.9 $ 4,743.6 $ 4,774.7 5%
GIC and other annuities:
Net written premiums & deposits (2) $ 778.9 $ 921.6 $ 1,005.4 $ 983.7 $ 1,792.1 130%
Policyholder account balances &
benefit reserves: (1)
Guaranteed investment contracts $ 2,633.2 $ 3,018.1 $ 3,748.2 $ 4,170.7 $ 4,912.2 87%
Other group annuities 5,040.1 5,052.9 4,962.6 4,929.6 4,854.2 (4%)
----------- ----------- ----------- ----------- -----------
Total $ 7,673.3 $ 8,071.0 $ 8,710.8 $ 9,100.3 $ 9,766.4 27%
=========== =========== =========== =========== ===========
</TABLE>
(1) Includes general account, separate accounts and managed funds.
(2) Excludes deposits of $13.0, $197.0, $14.0 and $33.3 in the 1998 first,
second, third and fourth quarters, respectively, and $23.2 in the 1999
first quarter, related to Travelers plans previously managed externally.
* Prior periods have been restated to include Citicorp Insurance Group.
** Revenues (excluding realized gains), net of interest expense.
<PAGE>
GLOBAL CONSUMER - Insurance
TRAVELERS LIFE AND ANNUITY - Page 2*
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
---------- ---------- ---------- ---------- ---------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Individual life insurance:
Life insurance in force (in billions,
face amt.):
Term $ 30.6 $ 30.9 $ 31.4 $ 32.1 $ 32.8 7%
Permanent (universal and whole life) 21.8 22.3 22.8 23.3 23.8 9%
---------- ---------- ---------- ---------- ----------
Total $ 52.4 $ 53.2 $ 54.2 $ 55.4 $ 56.6 8%
========== ========== ========== ========== ==========
Number of life policies in force (000) 525.2 522.9 520.0 518.1 515.8 (2%)
Life insurance issued (in billions,
face amt.) $ 2.0 $ 2.1 $ 2.2 $ 2.6 $ 2.5 25%
Number of life policies issued (000) 7.1 7.9 6.8 7.4 7.4 4%
Net written premiums and deposits:
Direct periodic premiums and deposits $ 76.2 $ 78.2 $ 77.9 $ 89.2 $ 84.5 11%
Single premium deposits 23.8 20.5 17.1 23.7 16.2 (32%)
Reinsurance (14.8) (16.0) (16.5) (18.7) (16.8) 14%
---------- ---------- ---------- ---------- ----------
Total $ 85.2 $ 82.7 $ 78.5 $ 94.2 $ 83.9 (2%)
========== ========== ========== ========== ==========
Policyholder account balances
& benefit reserves $ 2,327.1 $ 2,360.0 $ 2,366.9 $ 2,436.1 $ 2,468.3 6%
Individual long term care insurance:
Number of policies in force (000) 107.7 113.6 118.5 122.2 125.9 17%
Net earned premiums $ 45.6 $ 48.7 $ 51.8 $ 53.7 $ 55.2 21%
Net written premiums $ 44.5 $ 53.7 $ 53.3 $ 61.5 $ 52.5 18%
All businesses:
Net investment income $ 483.3 $ 498.8 $ 476.5 $ 510.3 $ 532.9 10%
Interest credited to contractholders $ 215.3 $ 210.6 $ 220.7 $ 231.1 $ 232.4 8%
Statutory data:
Travelers Insurance Company
Statutory capital and surplus $ 4,142.6 $ 4,370.3 $ 4,230.5 $ 4,951.1 $ 4,953.1 20%
Surplus to liabilities ratio 19.4% 20.0% 18.2% 20.4% 19.8%
</TABLE>
* Prior periods have been restated to include Citicorp Insurance Group.
<PAGE>
GLOBAL CONSUMER - Insurance
PRIMERICA FINANCIAL SERVICES
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
---------- ---------- ---------- ---------- ---------- -----------------
<S> <C> <C> <C> <C> <C> <C>
NET REVENUES* $ 400 $ 420 $ 413 $ 421 $ 432 8%
CORE INCOME (1)
Life insurance $ 75 $ 80 $ 77 $ 75 $ 86 15%
Other financial products 20 23 22 28 24 20%
---------- ---------- ---------- ---------- ----------
Total core business income $ 95 $ 103 $ 99 $ 103 $ 110 16%
========== ========== ========== ========== ==========
Face value (in billions) of:
Life insurance issued $ 13.0 $ 15.8 $ 14.2 $ 14.4 $ 13.6 5%
Life insurance in force $ 372.5 $ 377.5 $ 380.6 $ 383.7 $ 386.3 4%
Number of life policies issued (000) 51.1 61.2 55.6 55.7 51.6 1%
Number of life policies in force (000) 2,141.6 2,151.1 2,153.1 2,151.8 2,147.1 --
Annualized issued premiums $ 40.8 $ 48.7 $ 45.0 $ 44.8 $ 42.4 4%
Direct premiums $ 306.2 $ 312.3 $ 311.6 $ 313.7 $ 315.2 3%
Earned premiums:
PFS Individual term life $ 244.7 $ 248.8 $ 246.1 $ 247.3 $ 251.6 3%
Other 15.5 17.1 15.1 22.6 15.5 --
---------- ---------- ---------- ---------- ----------
Total $ 260.2 $ 265.9 $ 261.2 $ 269.9 $ 267.1 3%
========== ========== ========== ========== ==========
Mutual fund sales at NAV:
Salomon Smith Barney Asset
Management funds $ 335.6 $ 400.7 $ 383.9 $ 341.4 $ 407.7 21%
Other funds 228.8 308.6 249.8 197.3 233.5 2%
---------- ---------- ---------- ---------- ----------
Total U.S. mutual fund sales 564.4 709.3 633.7 538.7 641.2 14%
Mutual fund sales - Canada 204.3 123.9 91.3 76.5 143.2 (30%)
---------- ---------- ---------- ---------- ----------
Total mutual fund sales $ 768.7 $ 833.2 $ 725.0 $ 615.2 $ 784.4 2%
========== ========== ========== ========== ==========
Cash advanced on $.M.A.R.T. and
$.A.F.E. loans (2) $ 316.6 $ 410.6 $ 347.4 $ 386.5 $ 419.2 32%
Variable annuity net written premiums
and deposits $ 126.3 $ 175.2 $ 171.9 $ 178.6 $ 223.4 77%
SECURE net written premiums (3) $ 38.0 $ 55.8 $ 60.8 $ 58.7 $ 57.2 51%
Agents licensed for:
Life insurance 76,835 77,274 79,081 80,725 79,738 4%
Mutual funds 28,475 28,864 29,176 26,517 27,129 (5%)
$.M.A.R.T./$.A.F.E. loans 96,188 96,422 117,704 129,310 129,556 35%
Variable annuities 12,924 13,169 11,839 13,434 13,816 7%
Home & auto insurance 10,051 11,123 12,683 14,083 15,102 50%
Financial Needs Analyses submitted 140,617 130,549 132,771 131,080 142,451 1%
</TABLE>
(1) The 1998 fourth quarter reflects a one time $4.5 million reclass of income
from life insurance to other financial products as a result of bank
holding company requirements.
(2) The $.M.A.R.T. and $.A.F.E. loan products are marketed by PFS; the
receivables are reflected in the assets of Consumer Finance Services.
(3) The SECURE property casualty insurance products are marketed by PFS; the
premiums are reflected in the operating earnings of Travelers Property
Casualty Corp.
* Revenues (excluding realized gains), net of interest expense.
<PAGE>
GLOBAL CONSUMER - Insurance
TRAVELERS PROPERTY CASUALTY - PERSONAL LINES
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
-------- -------- -------- -------- -------- -----------------
<S> <C> <C> <C> <C> <C> <C>
NET REVENUES* $ 868 $ 899 $ 924 $ 975 $ 983 13%
CORE INCOME $ 82 $ 81 $ 68 $ 88 $ 83 1%
Net written premiums by
product line: (1)
Auto $ 555.7 $ 578.3 $ 590.8 $ 603.0 $ 619.6 11%
Homeowners and other 250.3 295.6 317.9 298.5 363.8 45%
-------- -------- -------- -------- --------
Total net written premiums $ 806.0 $ 873.9 $ 908.7 $ 901.5 $ 983.4 22%
======== ======== ======== ======== ========
Net written premiums by
distribution channel: (1)
Independent agents $ 682.5 $ 718.0 $ 731.8 $ 720.3 $ 791.6 16%
Affinity group marketing 53.4 61.0 72.9 76.9 83.0 55%
SECURE 38.0 55.8 60.8 58.7 57.2 51%
Joint marketing arrangements 32.1 39.1 43.2 45.6 51.6 61%
-------- -------- -------- -------- --------
Total net written premiums $ 806.0 $ 873.9 $ 908.7 $ 901.5 $ 983.4 22%
======== ======== ======== ======== ========
Statutory ratio development:
Earned premiums $ 770.8 $ 802.5 $ 835.7 $ 862.4 $ 892.1 16%
Losses and loss adjustment expenses 502.7 523.5 580.9 574.1 594.3 18%
Other underwriting expenses 226.0 242.1 243.5 238.8 269.8 19%
-------- -------- -------- -------- --------
Total deductions 728.7 765.6 824.4 812.9 864.1 19%
-------- -------- -------- -------- --------
Statutory underwriting gain $ 42.1 $ 36.9 $ 11.3 $ 49.5 $ 28.0 (33%)
======== ======== ======== ======== ========
Statutory combined ratio: (1)
Loss and loss adjustment expense ratio 65.2% 65.2% 69.5% 66.6% 66.6%
Other underwriting expense ratio 28.0% 27.7% 26.8% 26.5% 27.4%
-------- -------- -------- -------- --------
Combined ratio 93.2% 92.9% 96.3% 93.1% 94.0%
======== ======== ======== ======== ========
Net investment income (pre-tax) $ 95.4 $ 94.8 $ 88.6 $ 109.6 $ 90.4 (5%)
Effective tax rate on net
investment income 29.4% 28.5% 27.4% 28.7% 27.2%
Catastrophe losses, net of
reinsurance (after-tax) $ 8.6 $ 13.1 $ 21.8 $ -- $ 8.1 (6%)
</TABLE>
(1) The 1999 first quarter net written premiums include an adjustment
associated with a reinsurance transaction, which increased homeowners
premiums written by independent agents by $71.7 million. Excluding this
transaction, the loss and loss adjustment expense ratio, other
underwriting expense ratio, and combined ratio for the 1999 first quarter
were 66.6%, 26.6% and 93.2%, respectively.
* Revenues (excluding realized gains), net of interest expense.
<PAGE>
GLOBAL CONSUMER - International
EUROPE, MIDDLE EAST AND AFRICA
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
----- ----- ----- ----- ----- -----------------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 471 $ 496 $ 513 $ 541 $ 534 13%
Adjusted Operating Expense 318 337 328 358 338 6%
Provision for Loan Losses 70 67 72 83 78 11%
----- ----- ----- ----- -----
Core Income Before Taxes 83 92 113 100 118 42%
Income Taxes 32 36 44 39 44 38%
----- ----- ----- ----- -----
Core Income $ 51 $ 56 $ 69 $ 61 $ 74 45%
===== ===== ===== ===== =====
Average Assets (in billions of dollars) $ 21 $ 21 $ 21 $ 22 $ 21 --
===== ===== ===== ===== =====
Return on Assets 0.98% 1.07% 1.30% 1.10% 1.43%
===== ===== ===== ===== =====
Average Loans (in billions of dollars) $15.0 $15.4 $16.0 $16.9 $16.3 9%
Average Customer Deposits (in
billions of dollars) $16.5 $16.5 $16.6 $17.3 $16.8 2%
Accounts (in millions) 9.0 9.2 9.3 9.5 9.6 7%
Net Credit Loss Ratio 1.78% 1.71% 1.64% 1.71% 1.81%
Loans 90+ Days Past Due:
In millions of dollars $ 873 $ 887 $ 938 $ 937 $ 878
% 5.88% 5.80% 5.57% 5.49% 5.45%
</TABLE>
GLOBAL CONSUMER - International
ASIA PACIFIC
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
----- ----- ----- ----- ----- -----------------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 423 $ 457 $ 460 $ 512 $ 519 23%
Adjusted Operating Expense 237 253 232 248 267 13%
Provision for Loan Losses 50 64 63 74 88 76%
----- ----- ----- ----- -----
Core Income Before Taxes 136 140 165 190 164 21%
Income Taxes 53 54 64 73 62 17%
----- ----- ----- ----- -----
Core Income $ 83 $ 86 $ 101 $ 117 $ 102 23%
===== ===== ===== ===== =====
Average Assets (in billions
of dollars) $ 27 $ 28 $ 28 $ 29 $ 29 7%
===== ===== ===== ===== =====
Return on Assets 1.25% 1.23% 1.43% 1.60% 1.43%
===== ===== ===== ===== =====
Average Loans (in billions
of dollars) $19.5 $19.7 $20.1 $21.6 $22.1 13%
Average Customer Deposits (in
billions of dollars) $33.2 $34.9 $36.8 $39.6 $40.2 21%
Accounts (in millions) 6.4 6.6 7.1 7.4 8.0 25%
Net Credit Loss Ratio 0.92% 1.17% 1.12% 1.24% 1.43%
Loans 90+ Days Past Due:
In millions of dollars $ 316 $ 324 $ 384 $ 498 $ 513
% 1.57% 1.64% 1.87% 2.28% 2.31%
</TABLE>
<PAGE>
GLOBAL CONSUMER - International
LATIN AMERICA
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
----- ----- ----- ----- ----- -----------------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 354 $ 370 $ 431 $ 445 $ 466 32%
Adjusted Operating Expense 233 248 287 301 292 25%
Provision for Loan Losses 49 61 74 81 101 106%
----- ----- ----- ----- -----
Core Income Before Taxes 72 61 70 63 73 1%
Income Taxes 29 24 28 25 25 (14%)
----- ----- ----- ----- -----
Core Income $ 43 $ 37 $ 42 $ 38 $ 48 12%
===== ===== ===== ===== =====
Average Assets (in billions
of dollars) $ 9 $ 10 $ 13 $ 14 $ 14 56%
===== ===== ===== ===== =====
Return on Assets 1.94% 1.48% 1.28% 1.08% 1.39%
===== ===== ===== ===== =====
Average Loans (in billions
of dollars) $ 7.5 $ 7.9 $ 8.0 $ 7.9 $ 7.8 4%
Average Customer Deposits (in
billions of dollars) $ 8.9 $ 9.3 $10.7 $11.8 $12.7 43%
Accounts (in millions) 5.1 5.5 6.6 6.7 6.8 33%
Net Credit Loss Ratio 2.45% 2.88% 3.48% 3.39% 4.74%
Loans 90+ Days Past Due:
In millions of dollars $ 183 $ 209 $ 243 $ 288 $ 292
% 2.38% 2.61% 3.05% 3.60% 3.75%
</TABLE>
GLOBAL CONSUMER - International
GLOBAL PRIVATE BANK
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
----- ----- ----- ----- ----- -----------------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 264 $ 285 $ 285 $ 294 $ 273 3%
Adjusted Operating Expense 176 179 179 184 174 (1%)
Provision for Loan Losses (7) -- 1 11 8 214%
----- ----- ----- ----- -----
Core Income Before Taxes 95 106 105 99 91 (4%)
Income Taxes 37 42 40 38 34 (8%)
----- ----- ----- ----- -----
Core Income $ 58 $ 64 $ 65 $ 61 $ 57 (2%)
===== ===== ===== ===== =====
Average Assets (in billions
of dollars) $ 16 $ 16 $ 17 $ 18 $ 18 13%
===== ===== ===== ===== =====
Return on Assets 1.47% 1.60% 1.52% 1.34% 1.28%
===== ===== ===== ===== =====
</TABLE>
<PAGE>
GLOBAL CONSUMER
e-CITI (1)
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
---- ---- ----- ----- ----- ------------------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 30 $ 34 $ 38 $ 47 $ 54 80%
Adjusted Operating Expense 78 94 91 118 113 45%
Provision for Loan Losses 1 1 -- 1 1 --
---- ---- ----- ----- -----
Business Loss Before Taxes (49) (61) (53) (72) (60) 22%
Income Tax Benefit (19) (24) (20) (29) (24) 26%
---- ---- ----- ----- -----
Business Loss $(30) $(37) $(33) $ (43) $ (36) 20%
==== ==== ===== ===== =====
</TABLE>
(1) Includes development of electronic banking initiatives.
GLOBAL CONSUMER
OTHER (1)
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
---- ---- ----- ----- ----- ------------------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 26 $ 22 $ 23 $ 27 $ 31 19%
Operating Expense 30 44 72 97 63 110%
---- ---- ---- ---- ----
Business Loss Before Taxes (4) (22) (49) (70) (32) 700%
Income Tax Benefit (3) (10) (21) (25) (12) 300%
---- ---- ---- ---- ----
Business Loss $ (1) $(12) $(28) $(45) $(20) 1900%
==== ==== ==== ==== ====
</TABLE>
(1) Includes unallocated marketing and staff expenses.
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
SALOMON SMITH BARNEY - Page 1
(In millions of dollars)
(Excluding Asset Management division)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
------- ------- ------- ------- ------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Commissions $ 793 $ 781 $ 794 $ 835 $ 900 13%
Asset management and administration fees 300 344 350 331 377 26%
Investment banking 616 633 514 518 655 6%
Principal transactions 779 315 (1,332) 123 974 25%
Other income 28 44 28 79 65 132%
------- ------- ------- ------- -------
Total non-interest revenues 2,516 2,117 354 1,886 2,971 18%
------- ------- ------- ------- -------
Interest and dividends 3,316 3,466 3,336 2,775 2,611 (21%)
Interest expense 2,914 3,060 3,005 2,454 2,241 (23%)
------- ------- ------- ------- -------
Net interest and dividends 402 406 331 321 370 (8%)
------- ------- ------- ------- -------
Total revenues, net of interest expense 2,918 2,523 685 2,207 3,341 14%
------- ------- ------- ------- -------
Non-interest expenses:
Compensation and benefits 1,682 1,501 876 1,619 1,794 7%
Communications 115 113 116 123 117 2%
Occupancy and equipment 101 102 101 110 106 5%
Floor brokerage and other production 112 108 111 122 107 (4%)
Other operating and administrative expenses 197 157 122 214 214 9%
------- ------- ------- ------- -------
Total noninterest expenses 2,207 1,981 1,326 2,188 2,338 6%
------- ------- ------- ------- -------
Core Income before income taxes 711 542 (641) 19 1,003 41%
Provision for income taxes 268 194 (245) 6 355 32%
------- ------- ------- ------- -------
Core Income $ 443 $ 348 $ (396) $ 13 $ 648 46%
======= ======= ======= ======= =======
Total equity (in billions) (1) $ 8.9 $ 9.3 $ 8.7 $ 8.9 $ 9.6* 8%
Return on equity (1) 23.1% 18.2% (14.5%) 3.4% 31.4%
Pre-tax profit margin 24.4% 21.5% (93.6%) 0.9% 30.0%
Non-compensation expenses as a percent of
net revenues 18.0% 19.0% 65.7% 25.8% 16.3%
</TABLE>
(1) Total equity and return on equity (core income) for Salomon Smith Barney
in total (includes Salomon Smith Barney Asset Management).
* Preliminary.
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
SALOMON SMITH BARNEY - Page 2
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
--------- --------- --------- --------- --------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Client Assets (in billions of dollars)
Assets under fee-based management:
Financial Consultant (FC) managed accounts $ 13.3 $ 14.3 $ 13.8 $ 16.5 $ 18.6 40%
Consulting Group externally managed assets 67.1 69.3 63.9 71.9 73.1 9%
--------- --------- --------- --------- ---------
Total assets under fee-based management $ 80.4 $ 83.6 $ 77.7 $ 88.4 $ 91.7 14%
========= ========= ========= ========= =========
Total client assets $ 703.0 $ 724.3 $ 697.5 $ 773.8 $ 816.0 16%
Private Client
Registered Financial Consultants 10,321 10,494 10,573 10,803 10,918 6%
Annualized retail gross production per FC (000) $ 452 $ 441 $ 431 $ 413 $ 481 6%
Domestic retail offices 432 439 442 449 457 6%
Investment Banking and Public Finance
Underwriting (full credit to lead mgr.):
Debt and equity
Global volume $73,113.6 $81,378.3 $49,166.9 $53,015.7 $92,672.2 27%
Global market share 10.0% 11.2% 8.8% 9.3% 10.3%
Rank 3 2 3 3 2
U.S. volume $67,095.2 $73,550.7 $41,803.2 $46,226.6 $75,517.8 13%
U.S. market share 13.2% 14.1% 10.4% 11.6% 13.9%
Rank 2 2 3 2 2
Municipals (1)
Volume $ 8,319.1 $10,913.8 $ 9,553.1 $ 7,210.0 $ 7,212.7 (13%)
Market share 11.8% 14.2% 14.7% 10.6% 12.5%
Rank 1 1 1 2 1
Capital Markets/Research
Number of institutional salespeople (2) 877 854 869 884 796
Number of stocks in which markets are made 1,464 1,465 1,418 1,329 1,305 (11%)
% of S&P sectors covered by research 99% 99% 99% 98% 98%
</TABLE>
(1) Total long term excluding private placement.
(2) Excludes 102 institutional salespeople at Nikko in the 1999 first quarter.
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
EMERGING MARKETS
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
------ ------ ------ ------ ------ -----------------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 957 $ 973 $ 721 $ 975 $1,134 18%
Adjusted Operating Expense 475 503 511 512 501 5%
Provision for Loan Losses 62 79 198 85 115 85%
------ ------ ------ ------ ------
Core Income Before Taxes 420 391 12 378 518 23%
Income Taxes 156 146 4 144 196 26%
Minority Interest, Net of Tax -- -- -- -- 1 NM
------ ------ ------ ------ ------
Core Income $ 264 $ 245 $ 8 $ 234 $ 321 22%
====== ====== ====== ====== ======
Average Assets (in billions of dollars) $ 74 $ 75 $ 78 $ 81 $ 80 8%
====== ====== ====== ====== ======
Return on Assets 1.45% 1.31% 0.04% 1.15% 1.63%
====== ====== ====== ====== ======
</TABLE>
NM Not meaningful
GLOBAL CORPORATE AND INVESTMENT BANK
GLOBAL RELATIONSHIP BANKING
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
------ ------ ------ ------ ------ -----------------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 990 $ 1,151 $ 827 $ 947 $ 1,091 10%
Adjusted Operating Expense 737 827 807 803 784 6%
Provision for Loan Losses 3 (51) 34 (16) (4) (233%)
------- ------- ------- ------- -------
Core Income Before Taxes 250 375 (14) 160 311 24%
Income Taxes 92 137 (6) 58 114 24%
------- ------- ------- ------- -------
Core Income $ 158 $ 238 $ (8) $ 102 $ 197 25%
======= ======= ======= ======= =======
Average Assets (in billions of dollars) $ 90 $ 93 $ 94 $ 94 $ 89 (1%)
======= ======= ======= ======= =======
Return on Assets 0.71% 1.03% -- 0.43% 0.90%
======= ======= ======= ======= =======
</TABLE>
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
TRAVELERS PROPERTY CASUALTY - COMMERCIAL LINES
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
-------- -------- -------- -------- -------- -----------------
<S> <C> <C> <C> <C> <C> <C>
NET REVENUES* $ 1,619 $ 1,584 $ 1,604 $ 1,674 $ 1,534 (5%)
CORE INCOME $ 171 $ 174 $ 177 $ 201 $ 189 11%
Net written premiums by market:
National accounts $ 186.6 $ 121.6 $ 175.3 $ 140.9 $ 149.9 (20%)
Commercial accounts 462.6 440.8 446.0 450.7 443.6 (4%)
Select accounts 378.6 393.7 365.7 356.3 372.3 (2%)
Specialty accounts 184.0 164.7 181.2 164.8 148.2 (19%)
-------- -------- -------- -------- --------
Total net written premiums $1,211.8 $1,120.8 $1,168.2 $1,112.7 $1,114.0 (8%)
======== ======== ======== ======== ========
Statutory ratio development:
Earned premiums $1,126.2 $1,093.6 $1,139.2 $1,157.8 $1,072.7 (5%)
Losses and loss adjustment expenses 880.5 864.2 896.6 906.3 817.5 (7%)
Other underwriting expenses 346.0 345.6 341.7 336.4 317.9 (8%)
-------- -------- -------- -------- --------
Total deductions 1,226.5 1,209.8 1,238.3 1,242.7 1,135.4 (7%)
-------- -------- -------- -------- --------
Statutory underwriting loss $ (100.3) $ (116.2) $ (99.1) $ (84.9) $ (62.7) (37%)
======== ======== ======== ======== ========
Statutory combined ratio: (1)
Loss and loss adjustment expense ratio 78.2% 79.0% 78.7% 78.3% 76.2%
Other underwriting expense ratio 28.6% 30.8% 29.3% 30.2% 28.5%
-------- -------- -------- -------- --------
Combined ratio 106.8% 109.8% 108.0% 108.5% 104.7%
======== ======== ======== ======== ========
Net investment income (pre-tax) $ 412.5 $ 424.3 $ 411.8 $ 460.7 $ 412.6 --
Effective tax rate on net investment income 28.0% 27.5% 26.9% 27.6% 26.6%
Catastrophe losses, net of reinsurance (after-tax) $ -- $ 10.4 $ 14.9 $ -- $ -- --
</TABLE>
(1) Before policyholder dividends.
* Revenues (excluding realized gains), net of interest expense.
<PAGE>
SSB CITI ASSET MANAGEMENT GROUP
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
-------- -------- -------- -------- -------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Investment advisory, admin. & distribution fees $ 288 $ 303 $ 301 $ 317 $ 340 18%
Unit Investment Trust revenues - net 13 8 17 4 11 (15%)
Other revenues 12 6 8 12 11 (8%)
-------- -------- -------- -------- --------
Total revenues 313 317 326 333 362 16%
Interest expense 8 8 8 9 8 --
-------- -------- -------- -------- --------
Total revenues, net of interest expense 305 309 318 324 354 16%
-------- -------- -------- -------- --------
Expenses:
Employee compensation and benefits 85 86 95 117 106 25%
Deferred commission amortization 35 31 31 28 30 (14%)
Other expenses 72 79 80 94 85 18%
-------- -------- -------- -------- --------
Total expenses 192 196 206 239 221 15%
-------- -------- -------- -------- --------
Core income before income taxes 113 113 112 85 133 18%
Provision for income taxes 44 44 44 34 53 20%
-------- -------- -------- -------- --------
Core income $ 69 $ 69 $ 68 $ 51 $ 80 16%
======== ======== ======== ======== ========
Pre-tax profit margin 37.1% 36.6% 35.2% 26.2% 37.6%
Assets Under Management
(in billions of dollars):
Money market and other short term funds $ 67.5 $ 66.2 $ 71.8 $ 77.8 $ 85.7 27%
-------- -------- -------- -------- --------
Mutual funds:
Equity / Balanced 42.5 43.6 38.7 43.2 44.5 5%
Taxable Fixed Income 47.2 51.0 52.8 55.1 56.5 20%
Tax Exempt Fixed Income 9.6 9.8 10.4 10.8 10.9 14%
Annuities 3.7 3.4 3.1 3.7 4.1 11%
-------- -------- -------- -------- --------
Total mutual funds 103.0 107.8 105.0 112.8 116.0 13%
-------- -------- -------- -------- --------
Managed accounts
Private client 33.7 34.9 35.2 40.3 43.1 28%
Institutional 76.5 82.6 82.0 96.1 93.3 22%
-------- -------- -------- -------- --------
Total managed accounts 110.2 117.5 117.2 136.4 136.4 24%
-------- -------- -------- -------- --------
Total assets under management $ 280.7 $ 291.5 $ 294.0 $ 327.0 $ 338.1 20%
======== ======== ======== ======== ========
Unit Investment Trusts held in client accounts $ 13.1 $ 12.9 $ 12.4 $ 13.2 $ 13.2 1%
Number of Morningstar 4- and 5-star funds 23 25 24 24 22 (4%)
</TABLE>
<PAGE>
INVESTMENT ACTIVITIES
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
1998 1998 1998 1998 1999 (Decrease)
------- ------- ------- ------- ------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Core Income:
Proprietary Investments $ 170 $ 165 $ 60 $ (54) $ 60 (65%)
LDC Debt Sales 132 118 10 16 13 (90%)
Portfolio Gains 87 28 25 50 18 (79%)
Refinancing 13 5 5 3 2 (85%)
------- ------- ------- ------- -------
Total Core Income $ 402 $ 316 $ 100 $ 15 $ 93 (77%)
======= ======= ======= ======= =======
<CAPTION>
1Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 1Q 1998 Increase/
INVESTMENT PORTFOLIO (1) 1998 1998 1998 1998 1999 (Decrease)
------- ------- ------- ------- ------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Fixed-income investments:
Available for sale, at market:
Mortgage-backed securities - principally
obligations of U.S. Government agencies $ 8,726 $ 8,693 $ 9,663 $ 9,599 $ 9,595 10%
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies 3,912 4,281 4,977 4,144 3,728 (5%)
Corporates (including redeemable preferreds) 27,428 27,176 26,796 26,437 27,346 --
Obligations of states and political subdivisions 9,124 10,107 10,854 10,977 11,023 21%
Debt securities issued by foreign governments 1,339 1,166 997 1,603 1,822 36%
Held to maturity, at amortized cost 38 36 33 30 28 (26%)
------- ------- ------- ------- -------
Total fixed income 50,567 51,459 53,320 52,790 53,542 6%
Equity securities, at market 1,541 1,503 1,368 1,423 1,685 9%
Short-term and other 6,709 6,179 7,477 5,757 6,651 (1%)
------- ------- ------- ------- -------
Total investments held by Insurance companies (2) 58,817 59,141 62,165 59,970 61,878 5%
Proprietary Investments 4,295 4,608 4,500 4,598 4,724 10%
LDC Debt 5,236 4,074 3,280 3,320 3,290 (37%)
Refinancing 121 118 125 92 90 (26%)
------- ------- ------- ------- -------
Total invested assets $68,469 $67,941 $70,070 $67,980 $69,982 2%
======= ======= ======= ======= =======
After tax unrealized gains on invested assets $ 1,782 $ 1,582 $ 1,552 $ 1,358 $ 1,041 (42%)
======= ======= ======= ======= =======
</TABLE>
(1) Excluding certain investments held by operating banking segments.
(2) Interest and dividend income from these investments is included in the
operating segments.
<PAGE>
CITIGROUP CONSOLIDATED STATEMENT OF INCOME
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q
1998 1998 1998 1998 1999
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Revenues
Loan interest, including fees $ 5,344 $ 5,625 $ 5,884 $ 5,690 $ 5,888
Other interest and dividends 5,787 6,010 5,926 5,973 5,414
Insurance premiums 2,340 2,395 2,423 2,692 2,526
Commissions and fees 2,875 2,985 2,907 2,822 2,780
Principal transactions 1,365 878 (1,016) 553 1,770
Asset management and administration fees 498 553 563 678 955
Realized gains (losses) from sales of investments 378 332 (16) 146 53
Other income 850 1,183 923 885 1,135
-------- -------- -------- -------- --------
Total revenues 19,437 19,961 17,594 19,439 20,521
Interest expense 6,641 6,996 7,173 6,685 6,451
-------- -------- -------- -------- --------
Total revenues, net of interest expense 12,796 12,965 10,421 12,754 14,070
-------- -------- -------- -------- --------
Provisions for Benefits, Claims, and Credit Losses
Policyholder benefits and claims 1,994 2,047 2,099 2,225 2,048
Provision for credit losses 595 656 826 674 729
-------- -------- -------- -------- --------
Total provisions for benefits, claims, and credit losses 2,589 2,703 2,925 2,899 2,777
-------- -------- -------- -------- --------
Operating Expenses
Non-insurance compensation and benefits 3,491 3,429 2,819 3,597 3,755
Insurance underwriting, acquisition and operating 812 811 756 895 825
Restructuring / Merger Items -- (324) -- 1,119 (130)
Other operating 2,436 2,764 2,764 3,182 2,871
-------- -------- -------- -------- --------
Total operating expenses 6,739 6,680 6,339 8,793 7,321
-------- -------- -------- -------- --------
Income before Income Taxes, Minority Interest and
Cumulative Effect of Accounting Changes 3,468 3,582 1,157 1,062 3,972
Provision for income taxes 1,249 1,290 375 320 1,423
Minority interest, net of income taxes 58 52 53 65 60
-------- -------- -------- -------- --------
Income before Cumulative Effect of Accounting
Changes 2,161 2,240 729 677 2,489
Cumulative effect of accounting changes -- -- -- -- (127)
-------- -------- -------- -------- --------
Net Income $ 2,161 $ 2,240 $ 729 $ 677 $ 2,362
======== ======== ======== ======== ========
</TABLE>
<PAGE>
CITIGROUP EARNINGS ANALYSIS - MANAGED BASIS
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q
1998 1998 1998 1998 1999
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 12,796 $ 12,965 $ 10,421 $ 12,754 $ 14,070
Effect of Credit Card Securitization Activity 462 581 576 568 588
-------- -------- -------- -------- --------
Adjusted Revenues 13,258 13,546 10,997 13,322 14,658
Total Operating Expenses 6,739 6,680 6,339 8,793 7,321
Restructuring / Merger Items (1) -- 324 -- (1,119) 130
-------- -------- -------- -------- --------
Adjusted Operating Expenses 6,739 7,004 6,339 7,674 7,451
Provisions for Benefits, Claims and Credit Losses 2,589 2,703 2,925 2,899 2,777
Effect of Credit Card Securitization Activity 462 581 576 568 588
-------- -------- -------- -------- --------
Adjusted Provisions for Benefits, Claims and Credit Losses 3,051 3,284 3,501 3,467 3,365
Core Income Before Income Taxes, Minority Interest
and Cumulative Effect of Accounting Changes 3,468 3,258 1,157 2,181 3,842
Provision for Income Taxes 1,249 1,157 375 713 1,367
Minority Interest, Net of Income Taxes 58 52 53 65 60
-------- -------- -------- -------- --------
Core Income 2,161 2,049 729 1,403 2,415
Restructuring / Merger Items (1) -- 191 -- (726) 74
Cumulative Effect of Accounting Changes (2) -- -- -- -- (127)
-------- -------- -------- -------- --------
Net Income $ 2,161 $ 2,240 $ 729 $ 677 $ 2,362
======== ======== ======== ======== ========
</TABLE>
(1) Includes restructuring charge of $1,122 million pre-tax ($703 million
after-tax) and merger-related expenses of $65 million in the 1998 fourth
quarter; credits for reversals of the 1997 charge of $324 million pre-tax
($191 million after-tax) in the 1998 second quarter, $68 million pre-tax
($42 million after-tax) in the 1998 fourth quarter, and $211 million
pre-tax ($125 million after-tax) in the 1999 first quarter. The 1999 first
quarter also included $81 million pre-tax ($51 million after-tax) of
restructuring related items.
(2) First quarter 1999 accounting changes refer to adoption of Statement of
Position ("SOP") 97-3, "Accounting by Insurance and Other Enterprises for
Insurance-Related Assessments" (SOP 97-3) of ($135) million; adoption of
SOP 98-7, "Deposits Accounting: Accounting for Insurance and Reinsurance
Contracts That Do Not Transfer Insurance Risk" of $23 million, and the
adoption of SOP 98-5, "Reporting on the Costs of Start-Up Activities" of
($15) million.
<PAGE>
CONSUMER LOAN DELINQUENCY AMOUNTS, NET CREDIT LOSSES AND RATIOS (In
millions of dollars, except loan amounts in billions)
citigroup[LOGO]
<TABLE>
<CAPTION>
EOP Average
Loans 90 Days Or More Past Due (1) Loans Net Credit Losses (1)
------- ------------------------------- ------- -----------------------------
1Q 1999 1Q 1999 4Q 1998 1Q 1998 1Q 1999 1Q 1999 4Q 1998 1Q 1998
------- ------- ------- ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Citibanking North America $ 8.0 $ 107 $ 87 $ 129 $ 8.1 $ 28 $ 32 $ 32
Ratio 1.33% 1.04% 1.51% 1.35% 1.55% 1.51%
Mortgage Banking 26.7 610 625 688 26.6 13 17 23
Ratio 2.29% 2.44% 2.91% 0.20% 0.27% 0.42%
U.S. Bankcards (2) 69.0 1,007 1,001 855 67.4 784 790 676
Ratio 1.46% 1.45% 1.85% 4.72% 4.82% 5.85%
Other Cards 2.5 46 46 40 2.3 18 18 16
Ratio 1.86% 1.96% 1.67% 3.25% 2.96% 2.95%
Consumer Finance Services 12.9 183 172 143 12.1 71 77 72
Ratio 1.42% 1.44% 1.42% 2.38% 2.67% 2.93%
Europe, Middle East and Africa 16.1 878 937 873 16.3 73 73 66
Ratio 5.45% 5.49% 5.88% 1.81% 1.71% 1.78%
Asia Pacific 22.2 513 498 316 22.1 78 68 44
Ratio 2.31% 2.28% 1.57% 1.43% 1.24% 0.92%
Latin America 7.8 292 288 183 7.8 91 67 45
Ratio 3.75% 3.60% 2.38% 4.74% 3.39% 2.45%
Global Private Bank 17.4 191 193 186 17.2 8 11 (7)
Ratio 1.10% 1.14% 1.21% 0.18% 0.25% NM
Other 0.6 2.0 2.0 1.0 0.9 1 1 1
------ ------ ------ ------ ------ ------ ------ -----
Total Managed 183.2 3,829 3,849 3,414 180.8 1,165 1,154 968
Ratio 2.09% 2.12% 2.29% 2.61% 2.61% 2.65%
Securitization Activities:
Securitized Credit Card Receivables (46.7) (688) (658) (519) (44.3) (556) (536) (431)
Loans Held for Sale (5.6) (39) (38) (39) (5.2) (32) (32) (31)
------ ------ ------ ------ ------ ------ ------ -----
(52.3) (727) (696) (558) (49.5) (588) (568) (462)
Total Loans $130.9 $3,102 $3,153 $2,856 $131.3 $ 577 $ 586 $ 506
====== ====== ====== ====== ====== ====== ====== =====
Ratio 2.37% 2.38% 2.44% 1.78% 1.80% 1.75%
</TABLE>
(1) The ratios of 90 days or more past due and net credit losses are
calculated based on end-of-period and average loans, respectively, both
net of unearned income.
(2) Includes U.S. Bankcards and Travelers Bank.
NM Not meaningful
<PAGE>
CITIGROUP SUPPLEMENTAL DATA
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q
1998 1998 1998 1998 1999
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
CASH BASIS AND RENEGOTIATED LOANS
Commercial Cash-Basis Loans
Collateral Dependent (at lower of cost or collateral value) (1) $ 242 $ 193 $ 170 $ 394 $ 358
Other (2) 1,102 1,100 1,110 1,201 1,277
------ ------ ------ ------ ------
Total Cash-Basis Loans $1,344 $1,293 $1,280 $1,595 $1,635
====== ====== ====== ====== ======
Commercial Cash-Basis Loans
Emerging Markets (2) $ 953 $ 981 $ 982 $1,062 $1,095
Global Relationship Banking 378 300 286 268 308
Insurance Subsidiaries -- -- -- 252 218
Investment Activities 13 12 12 13 14
------ ------ ------ ------ ------
Total Cash-Basis Loans $1,344 $1,293 $1,280 $1,595 $1,635
====== ====== ====== ====== ======
Commercial Renegotiated Loans $ 61 $ 45 $ 48 $ 45 $ 47
====== ====== ====== ====== ======
Consumer Loans on which Accrual of Interest
has been Suspended $2,003 $2,021 $2,097 $2,273 $2,240
====== ====== ====== ====== ======
OTHER REAL ESTATE OWNED AND
ASSETS PENDING DISPOSITION
Consumer (3) $ 258 $ 199 $ 260 $ 254 $ 217
------ ------ ------ ------ ------
Emerging Markets 21 24 26 27 26
Global Relationship Banking 329 324 319 235 212
Insurance Subsidiaries 189 191 211 234 225
------ ------ ------ ------ ------
Total Commercial (3) 539 539 556 496 463
------ ------ ------ ------ ------
Total $ 797 $ 738 $ 816 $ 750 $ 680
====== ====== ====== ====== ======
Assets Pending Disposition (4) $ 103 $ 104 $ 103 $ 100 $ 95
====== ====== ====== ====== ======
ALLOWANCE FOR CREDIT LOSSES
Global Consumer (5) $2,830 $3,200 $3,275 $3,310 $3,355
Global Corporate and Investment Bank 3,329 3,329 3,329 3,307 3,307
------ ------ ------ ------ ------
Total Allowance for Credit Losses $6,159 $6,529 $6,604 $6,617 $6,662
====== ====== ====== ====== ======
Allowance As a Percent of Total Loans:
Global Consumer 2.41% 2.67% 2.62% 2.50% 2.56%
Global Corporate and Investment Bank 3.89% 3.80% 3.68% 3.69% 3.46%
Total 3.03% 3.15% 3.06% 2.98% 2.94%
</TABLE>
(1) 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.
(2) Includes foreign currency derivative contracts with a balance sheet credit
exposure of $83 million, $44 million, $44 million, $14 million, and $13
million at March 31, 1998, June 30, 1998, September 30, 1998, December 31,
1998, and March 31, 1999, respectively, for which the recognition of
revaluation gains has been suspended.
(3) Represents repossessed real estate, carried at lower of cost or collateral
value.
(4) Represents consumer residential mortgage loans that have a high
probability of foreclosure, carried at lower of cost or collateral value.
(5) The 1998 second quarter reflects the addition of $320 million of credit
loss reserves related to the acquisition of the Universal Card portfolio.
<PAGE>
CITIGROUP MANAGED ASSETS AND INSURANCE INVESTMENTS
(In billions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q
1998 1998 1998 1998 1999
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
SSB Citi Asset Management Group $ 280.7 $ 291.5 $ 294.0 $ 327.0 $ 338.1
SSB - Financial Consultant managed accounts 13.3 14.3 13.8 16.5 18.6
Travelers Life and Annuity 25.2 24.3 25.7 26.0 26.6
------- ------- ------- ------- -------
Total assets managed for third parties 319.2 330.1 333.5 369.5 383.3
Consulting Group externally managed assets 67.1 69.3 63.9 71.9 73.1
Other investments held by Insurance companies 37.1 38.2 40.1 37.6 39.0
------- ------- ------- ------- -------
Total managed assets and insurance investments $ 423.4 $ 437.6 $ 437.5 $ 479.0 $ 495.4
======= ======= ======= ======= =======
</TABLE>
CITICORP SUPPLEMENTAL DATA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q
1998 1998 1998 1998 1999
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET INTEREST REVENUE STATISTICS
(taxable equivalent basis)
Net Interest Revenue $ 2,856 $ 3,009 $ 3,117 $ 3,284 $ 3,274
Effect of Credit Card Securitization Activity 640 908 951 1,039 1,080
------- ------- ------- ------- -------
Total Adjusted $ 3,496 $ 3,917 $ 4,068 $ 4,323 $ 4,354
======= ======= ======= ======= =======
Average Interest Earning Assets
(in billions of dollars) $ 265.2 $ 276.0 $ 278.7 $ 287.5 $ 289.5
Effect of Credit Card Securitization Activity 27.4 36.8 39.9 41.2 44.0
------- ------- ------- ------- -------
Total Adjusted $ 292.6 $ 312.8 $ 318.6 $ 328.7 $ 333.5
======= ======= ======= ======= =======
Net Interest Margin (%) 4.37% 4.37% 4.44% 4.53% 4.59%
Effect of Credit Card Securitization Activity 0.48% 0.65% 0.62% 0.69% 0.70%
------- ------- ------- ------- -------
Total Adjusted 4.85% 5.02% 5.06% 5.22% 5.29%
======= ======= ======= ======= =======
</TABLE>
<PAGE>
TRAVELERS PROPERTY CASUALTY CORP. SUPPLEMENTAL DATA
(In millions of dollars)
citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q
1998 1998 1998 1998 1999
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
GAAP Consolidated Statement of Operations
Revenues:
Premiums $ 1,898.2 $ 1,902.8 $ 1,974.9 $ 2,020.2 $ 1,964.8
Net investment income 508.3 519.3 501.4 571.0 503.2
Fee income 82.0 76.9 74.2 72.7 66.5
Realized investment gains 66.4 9.6 32.7 34.8 15.6
Other revenues 39.3 23.6 17.2 25.6 22.5
--------- --------- --------- --------- ---------
Total revenues 2,594.2 2,532.2 2,600.4 2,724.3 2,572.6
--------- --------- --------- --------- ---------
Claims and expenses:
Claims and claim adjustment expenses* 1,427.9 1,430.8 1,517.7 1,529.4 1,449.1
Policyholder dividends 13.0 13.2 13.3 1.9 10.4
Amortization of deferred acquisition costs 285.9 303.7 304.7 302.2 314.6
Interest expense 41.0 40.4 39.9 39.9 39.9
General and administrative expenses 340.5 318.0 300.1 350.3 307.9
--------- --------- --------- --------- ---------
Total claims and expenses 2,108.3 2,106.1 2,175.7 2,223.7 2,121.9
--------- --------- --------- --------- ---------
Income before federal income taxes and cumulative
effect of changes in accounting principles 485.9 426.1 424.7 500.6 450.7
Federal income taxes 138.8 113.6 109.4 132.7 117.1
--------- --------- --------- --------- ---------
Income before cumulative effect of changes in
accounting principles 347.1 312.5 315.3 367.9 333.6
Cumulative effect of change in accounting for
insurance-related assessments, net of tax -- -- -- -- (160.5)
Cumulative effect of change in accounting for
insurance and reinsurance contracts that
do not transfer insurance risk, net of tax -- -- -- -- 27.4
--------- --------- --------- --------- ---------
Net income** $ 347.1 $ 312.5 $ 315.3 $ 367.9 $ 200.5
========= ========= ========= ========= =========
*Includes pre-tax:
Catastrophe losses, net of reinsurance $ 13.2 $ 36.2 $ 56.5 $ -- $ 12.5
Asbestos and environmental losses $ 31.0 $ 30.0 $ 28.0 $ 27.0 $ 29.0
**Includes, net of taxes:
Net investment income $ 364.8 $ 375.5 $ 366.1 $ 412.2 $ 368.9
Realized investment gains $ 43.2 $ 6.2 $ 21.3 $ 22.5 $ 10.1
Statutory underwriting
Net written premiums (1) $ 2,017.8 $ 1,994.7 $ 2,076.9 $ 2,014.2 $ 2,097.4
Net earned premiums $ 1,897.0 $ 1,896.1 $ 1,974.9 $ 2,020.2 $ 1,964.8
Losses and loss adjustment expenses 1,383.2 1,387.7 1,477.5 1,480.4 1,411.8
Other underwriting expenses 572.0 587.7 585.2 575.2 587.7
--------- --------- --------- --------- ---------
Statutory underwriting loss (58.2) (79.3) (87.8) (35.4) (34.7)
Policyholder dividends 13.0 13.2 13.3 1.9 10.4
--------- --------- --------- --------- ---------
Statutory underwriting loss after
policyholder dividends $ (71.2) $ (92.5) $ (101.1) $ (37.3) $ (45.1)
========= ========= ========= ========= =========
Reserves for losses and loss adjustment
expenses $21,323.2 $21,141.8 $20,958.4 $20,726.7 $20,660.1
Decrease in reserves $ (73.0) $ (181.4) $ (183.4) $ (231.7) $ (66.6)
Statutory surplus $ 6,409.1 $ 6,640.4 $ 6,754.3 $ 7,079.1 $ 7,260.0
Net written premiums/surplus (2) 1.21:1 1.18:1 1.18:1 1.14:1 1.13:1
Statutory combined ratio: (1), (3)
Loss and loss adjustment expense ratio 72.9% 73.2% 74.8% 73.3% 71.9%
Other underwriting expense ratio 28.3% 29.5% 28.2% 28.6% 28.0%
--------- --------- --------- --------- ---------
Combined ratio 101.2% 102.7% 103.0% 101.9% 99.9%
========= ========= ========= ========= =========
</TABLE>
(1) First quarter 1999 net written premiums include an increase of $71.7
million due to an adjustment associated with a reinsurance transaction.
Excluding this transaction, the statutory loss and loss adjustment expense
ratio, other underwriting expense ratio and combined ratio for the first
quarter 1999 were 71.9%, 27.7% and 99.6%, respectively.
(2) Based on 12 month rolling net written premiums.
(3) Before policyholder dividends.
<PAGE>
SIGNATURE
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 hereunto duly authorized.
Dated: April 20, 1999 Citigroup Inc.
By: /s/ Irwin Ettinger
----------------------------
Irwin Ettinger
Chief Accounting Officer
