<PAGE>
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 17, 2000
---------------------------
Citigroup Inc.
-------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 1-9924 52-1568099
--------------- ----------- -------------------
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
153 East 53rd Street, New York, New York 10043
-------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(212) 559-1000
-------------------------------------------------------------------
(Registrant's telephone number, including area code)
<PAGE>
Citigroup Inc.
Current Report on Form 8-K
Item 5. Other Events.
On April 17, 2000 Citigroup Inc. reported record core income of $3.6 billion for
the first quarter ended March 31, 2000. Core income per share, fully diluted,
was $1.04, a 51% increase over the 1999 first quarter. A robust global market
environment and the strength of Citigroup's individual businesses resulted in:
- Record earnings for each of Citigroup's major lines of business.
- Adjusted net revenue growth of 19% outpacing expense growth of
11%.
- Core earnings growth of 23% for Global Consumer, 36% for the
Global Corporate and Investment Bank and 26% for the Global
Investment Management and Private Banking segment, with two-thirds
of Citigroup's businesses generating greater than 15% earnings
growth.
- Strong performance from the company's portfolio of equity
investments.
- Return on equity of 30%.
- The repurchase of 22.5 million shares at a cost of $1.2 billion.
- Citigroup has total equity capital and trust securities of $55.2
billion at the end of the first quarter. The Tier I capital ratio
is 9.7%.
"Our very strong first quarter provides tremendous momentum to our fiscal year,
with all of our businesses realizing the full advantage from favorable business
conditions worldwide," said Sanford I. Weill, Chairman and Co-Chief Executive
Officer. "Our results underscore the ability of our businesses to execute in
ways that benefit our customers and shareholders."
"As economic expansion continues throughout the world, we are seizing
opportunities to build our capabilities and share in both well-established and
emerging markets," continued Weill. "Our Nikko Salomon Smith Barney joint
venture celebrated its first anniversary by attaining the number one position in
Japanese M&A and number two position in equities. This quarter alone, we
announced a number of transactions that strengthen our strategic presence in key
markets. Our acquisition of the investment banking business of Schroders,
expected to close in the second quarter, will enhance our ability to benefit
from the major structural changes occurring in Europe, and the benefits are
already apparent to the clients of both organizations. Our purchase of
Reliance's surety business will enable us to expand our insurance presence, as
will our pending tender offer to purchase the remaining 15% of Travelers
Property Casualty that we do not own. Consolidating ownership of pension fund
companies in Argentina and Mexico and the launch of our CitiStreet joint venture
will enable us to more fully benefit from the growth in the retirement services
business globally."
"We believe that those companies with brand and distribution will be the winners
on the Internet, and we are committed to being a leader in electronic payments
and commerce on the Web. This quarter, we took significant steps towards our
goal by introducing new internet-based applications to our consumer, retail
brokerage, Private Banking and institutional clients around the world. We look
forward to continuing to build our capability on the Internet through the
leadership of our new Internet Operating Group, headed by Deryck Maughan,
working closely with Ed Horowitz at e-Citi," concluded Weill.
<PAGE>
GLOBAL CONSUMER
1st Quarter Core Income: $1.21 Billion, Up 23% From $981 Million
Revenues Increase 12% to $7.6 Billion From $6.8 Billion
Citigroup's Global Consumer business achieved its seventh consecutive quarter of
record earnings, increasing income by 23% on the strength of 12% revenue growth,
and a continued improvement in operating margin as a result of cost-reduction
programs put into place throughout 1999. Expense growth of 10% included charges
related to the termination of certain contracts and other initiatives at e-Citi.
Excluding the results of e-Citi, expense growth for Global Consumer was 7% while
income rose 28%.
The Global Consumer business also benefited from stable to improving credit
quality across nearly all segments as well as growth in the international
segment. Both long-standing and new cross-marketing programs contributed to
results in the quarter, including strong individual annuity sales and investment
sales globally. Also contributing to growth was Citigroup's worldwide cards
business, which includes operations in 47 countries, and which generated income
growth of 15% over the prior year period.
Consumer usage of the company's Internet products and services continued to grow
during the quarter, bringing the total number of customers accessing Citigroup
on-line to over four million worldwide. e-Citi also continued to pioneer
innovative delivery methods to reach both new and existing Citigroup customers.
In the fast-growing mobile phone market of Poland, Citigroup is testing
cell-phone banking, which already has 37,000 customers.
- - BANKING/LENDING core income rose 27%, to $610 million, led by the
performance of CITIBANKING NORTH AMERICA, where revenue growth of 14%,
driven by higher deposit spreads and volumes as well as 54% growth in
investment product fees, combined with a 6% expense reduction led to 92%
income growth. During the quarter, the business successfully launched
Citipro, a consultative sales tool, and continued to license and train
salespeople. MORTGAGE BANKING core income increased 3% as the impact of
rising rates on the level and mix of originations was offset by the
contribution from Source One and higher Student Loan earnings. Core income
growth for CARDS rose 8%. U.S. bankcard sales volume growth of 15% and
receivables growth of 6%, combined with flat expenses, offset compressed
margins. The charge-off rate for U.S. cards continued to improve, at 4.35%.
Core income for CITIFINANCIAL increased 58% in the quarter, as receivables
rose by 24% and credit quality continued to improve.
- - INSURANCE core income increased by 12% to $381 million. Core income for
TRAVELERS LIFE AND ANNUITY rose 27%, driven by higher volumes in group and
individual annuities and higher net investment income. At PRIMERICA, core
income rose 8% with strong mutual funds sales and net investment income
partly offset by increased infrastructure investment including
international expansion scheduled for later this year. Income at Travelers
Property Casualty's PERSONAL LINES fell 10% in the quarter, as higher
catastrophe losses offset increased net investment income. Net written
premiums decreased as a result of the curtailment of the SECURE product and
a mandated rate decrease in New Jersey.
- - INTERNATIONAL consumer core income growth accelerated in the quarter,
increasing 57% to $335 million. In EUROPE, MIDDLE EAST AND AFRICA, core
income rose 48% fueled by investment product sales and loan growth,
increases in the cards business across the region, along with controlled
expense levels. Core income in ASIA PACIFIC increased 64%, driven by
investment product sales and higher cards and deposit volumes, as well as
improved credit costs. Revenue and expense growth also reflected the
contribution of the Diners Club franchise in Japan, acquired in the
quarter. LATIN AMERICA core income rose 52%, driven by improvements at the
company's Brazilian credit card affiliate Credicard, stabilizing credit
costs in the region, and gain on the sale of the Puerto Rico auto
portfolio.
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
1st Quarter Core Income: $1.84 Billion, Up 36% From $1.36 Billion
Revenues Increase 15% to $8.2 Billion From $7.1 Billion
The Global Corporate and Investment Bank posted record earnings in the quarter
as a result of the strength of the capital markets worldwide and the enhanced
customer service and value provided by the Citibank/SSB organization. The strong
platform created by the merger and the business's ability to benefit from market
trends was evident in the number of leadership positions earned during the
quarter in global underwriting, M&A advisory, foreign exchange and derivatives.
The Nikko Salomon Smith Barney joint venture continues to post strong results.
During the quarter, the Company increased its ownership in Nikko Securities from
9.5% to approximately 20%, reflecting its commitment to Japan and to its
strategic partnership with Nikko. The results of this investment are now
reported together with Salomon Smith Barney.
- - SALOMON SMITH BARNEY reported a second consecutive quarter of record
earnings, with core income rising to $957 million, increasing 48% from the
first quarter of 1999, and 44% from the fourth quarter, reflecting
continued benefits from the merger and a favorable operating environment.
Total revenues exceeded $4 billion, with record revenue from commissions,
investment banking and fee-based Private Client revenues. Salomon Smith
Barney generated an annualized return on equity, on a legal entity basis,
of 41%. The Private Client business performed exceptionally well, with the
value of client assets rising 26% to $1.032 trillion, and annualized gross
production per financial consultant reaching a record $598,000. Over one
million accounts now regularly use Access, Salomon Smith Barney's Web site
and on-line trading service. During the quarter, Salomon Smith Barney
achieved the #2 ranking in both U.S. and global debt and equity volume. It
also topped the league tables in Euro corporate issuance for the quarter
and took the #1 position in both Asia and Japan M&A.
- - The GLOBAL CORPORATE BANK reported record core income of $643 million, up
24% from the strong 1999 first quarter. Revenues increased 8% to a record
$2.4 billion, as 17% revenue growth in transaction services was partially
offset by lower trading revenues, primarily in Latin America, which
reported exceptional trading results in the 1999 quarter resulting from
economic volatility in the region. The business produced its seventh
consecutive quarter of declining expense, as lower Year 2000 and
EMU-related expenses, the impact of previous restructuring actions, as well
as ongoing expense initiatives drove a 2% reduction. During the quarter,
the business was recognized as the "Best Emerging Markets Bank" by GLOBAL
FINANCE magazine, and the number one derivatives dealer by INSTITUTIONAL
Investor.
- - TRAVELERS PROPERTY CASUALTY COMMERCIAL LINES core income rose 27% based on
higher net investment income, and a firming pricing environment. In
addition, the business experienced increased favorable prior-year reserve
development and lower weather-related costs.
<PAGE>
GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING
1st Quarter Core Income: $172 Million, Up 26% From $137 Million
Revenues Increase 26% to $790 Million From $629 Million
The Global Investment Management and Private Banking business continues to
strengthen its organization and position itself to capture significant asset
flows. The business segment reported strong growth in revenue and core income
from both the Private Bank and Asset Management. The Group continued to build
its position in Retirement Services, increasing its ownership in Garante in
Mexico and announcing its intention to acquire the remaining 50% of Siembra in
Argentina, and launched the CitiStreet joint venture on April 1, 2000.
- - ASSET MANAGEMENT core income rose 13% over the prior year period to $90
million with an 11% increase in assets under management and a 21% rise in
revenues. This growth was offset by higher costs associated with building
the business's global sales and marketing capabilities and continued
investment in research, quantitative and technology expertise, as well as
higher expenses associated with the Garante acquisition.
Institutional client assets rose 7% to $151 billion aided by cross-selling
efforts including $4 billion in client assets raised through the Global
Corporate and Investment Bank channel. Sales of the Group's long-term
mutual funds and managed account products through the SSB retail sales
channel rose 22% to $4.7 billon although market share declined to 29%, the
result of a mix shift towards sector-based funds, which were introduced
later in the quarter. In addition, Primerica sold $465 million of the
Group's U.S. mutual and money funds in the quarter, representing 48% of
Primerica's sales. The Group sold $684 million of mutual and money funds
through the Citibank consumer bank in Europe for the quarter and $347
million of mutual and money funds through the Citibank consumer bank and
non-proprietary channels in Japan.
- - Core income for the PRIVATE BANK rose 44% to $82 million in the quarter.
Revenues increased 32%, driven by higher investment product sales and
increased banking and lending activity across all regions, which more than
offset higher costs primarily associated with sales force expansion and
technology investments. Client business volumes, which comprise loans,
deposits and client assets under fee-based management and custody accounts,
rose to $144 billion.
CORPORATE/OTHER AND INVESTMENT ACTIVITIES
The loss from CORPORATE/OTHER was 67% higher than the prior year period, as
increased treasury and technology costs offset reduced corporate staff expenses.
The loss also included a $108 million pre-tax contribution of appreciated
venture capital securities to the company's Foundation, which had minimal impact
on Citigroup's earnings after related tax benefits and investment gains,
reflected in Investment Activities.
Income from INVESTMENT ACTIVITIES rose to $634 million, due to strong results
from Citigroup's Venture Capital business, and gains on a number of investments
in other proprietary investment portfolios, reflecting strong equity markets.
These gains were reduced by losses relating to the repositioning of certain
securities in the insurance portfolio and writedowns in the refinancing
portfolios.
# # #
<PAGE>
Forward-Looking Statements
Certain of the statements contained herein that are not historical facts are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act. The Company's actual results may differ materially
from those included in the forward-looking statements. Forward-looking
statements are typically identified by words or phrases such as "believe,"
"expect," "anticipate," "intend," "estimate," "target," "may increase," "may
fluctuate," "may result in," "are projected," and similar expressions. These
forward-looking statements involve risks and uncertainties including, but not
limited to, the following: general economic conditions, including the
performance of financial markets and interest rates; the ability of the
Company to expand its insurance presence; and the timely and successful
implementation of the Company's internet commerce strategy.
# # #
A financial summary follows. Additional financial, statistical and
business-related information, as well as business and segment trends, is
included in the Financial Supplement.
<PAGE>
<TABLE>
<CAPTION>
CITIGROUP SEGMENT INCOME FIRST QUARTER %
(IN MILLIONS OF DOLLARS) 2000 1999 Change
<S> <C> <C> <C>
GLOBAL CONSUMER
Citibanking North America $ 138 $ 72 92
Mortgage Banking 63 61 3
Cards 297 276 8
CitiFinancial 112 71 58
Banking/Lending 610 480 27
Travelers Life and Annuity 187 147 27
Primerica Financial Services 119 110 8
Personal Lines 75 83 (10)
Insurance 381 340 12
Total North America 991 820 21
Europe, Middle East, & Africa 99 67 48
Asia Pacific 166 101 64
Latin America 70 46 52
Total International 335 214 57
e-Citi (93) (35) (166)
Other Consumer (26) (18) (44)
TOTAL GLOBAL CONSUMER 1,207 981 23
GLOBAL CORPORATE AND INVESTMENT BANK
Salomon Smith Barney 957 648 48
Emerging Markets 396 324 22
Global Relationship Banking 247 196 26
Total Global Corporate Bank 643 520 24
Commercial Lines Insurance 240 189 27
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 1,840 1,357 36
GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING
SSB Citi Asset Management Group 90 80 13
Private Bank 82 57 44
TOTAL GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING 172 137 26
CORPORATE/OTHER (251) (150) (67)
INVESTMENT ACTIVITIES 634 90 604
CORE INCOME 3,602 2,415 49
Restructuring-Related Items -- After Tax (A) (12) 74 (116)
Cumulative Effect of Accounting Changes (B) - (127) NM
NET INCOME $3,590 $2,362 52
DILUTED EARNINGS PER SHARE:
CORE INCOME $1.04 $0.69 51
NET INCOME 1.04 0.68 53
</TABLE>
(A) The restructuring-related items in the 2000 first quarter included $12
million of accelerated depreciation. The 1999 first quarter included a
credit for reversal of prior charges of $125 million and $51 million of
accelerated depreciation.
(B) 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.
# # #
<PAGE>
CITIGROUP - QUARTERLY FINANCIAL DATA SUPPLEMENT
<TABLE>
<CAPTION>
PAGE NUMBER
------------------
<S> <C>
CITIGROUP CONSOLIDATED
Financial Summary 1
Segment Net Revenues 2
Segment Core Income 3
Segment Detail
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America 4
Mortgage Banking 5
Cards 6
CitiFinancial 7
INSURANCE
Travelers Life & Annuity 8 & 9
Primerica Financial Services 10
Travelers Property Casualty - Personal Lines 11
INTERNATIONAL
Europe, Middle East & Africa 12
Asia Pacific 13
Latin America 14
E-CITI 15
OTHER CONSUMER 15
GLOBAL CORPORATE AND INVESTMENT BANK:
Salomon Smith Barney 16 & 17
Total Global Corporate Bank 18
Emerging Markets 18
Global Relationship Banking 18
Travelers Property Casualty - Commercial Lines 19
GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING:
SSB Citi Asset Management Group 20
Global Private Bank 21
INVESTMENT ACTIVITIES 22
CITIGROUP SUPPLEMENTAL DETAIL
Consolidated Statement of Income 23
Earnings Analysis - Managed Basis 24
Consumer Loan Delinquency Amounts, Net Credit Losses and Ratios 25
Details of Credit Loss Experience 26
Cash Basis & Renegotiated Loans, Other Real Estate Owned and Assets Pending Disposition 27
Managed Assets and Insurance Investments 28
Insurance Investment Portfolio 28
CITICORP SUPPLEMENTAL DATA 29
</TABLE>
<PAGE>
CITIGROUP -- FINANCIAL SUMMARY
(In millions of dollars, except per share amounts)
CITIGROUP, THE MOST GLOBAL FINANCIAL SERVICES COMPANY, PROVIDES SOME 100 MILLION
CONSUMERS, CORPORATIONS, GOVERNMENTS AND INSTITUTIONS IN OVER 100 COUNTRIES WITH
A BROAD RANGE OF FINANCIAL PRODUCTS AND SERVICES.
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
-------- -------- -------- -------- -------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Core Income $ 2,415 $ 2,477 $ 2,450 $ 2,605 $ 3,602 49%
Restructuring - Related Items 74 (29) (15) 17 (12)
Cumulative Effect of Accounting Changes (127) - - - -
------- ------- ------- ------- -------
NET INCOME $ 2,362 $ 2,448 $ 2,435 $ 2,622 $ 3,590 52%
======= ======= ======= ======= =======
BASIC EARNINGS PER SHARE:
CORE INCOME $ 0.71 $ 0.73 $ 0.72 $ 0.77 $ 1.07 51%
======= ======= ======= ======= =======
NET INCOME $ 0.70 $ 0.72 $ 0.72 $ 0.78 $ 1.07 53%
======= ======= ======= ======= =======
WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO BASIC EPS 3,340.2 3,332.7 3,332.0 3,330.9 3,331.6
======= ======= ======= ======= =======
PREFERRED DIVIDENDS - BASIC $ 40 $ 38 $ 38 $ 33 $ 30
======= ======= ======= ======= =======
DILUTED EARNINGS PER SHARE:
CORE INCOME $ 0.69 $ 0.71 $ 0.70 $ 0.75 $ 1.04 51%
======= ======= ======= ======= =======
NET INCOME $ 0.68 $ 0.70 $ 0.70 $ 0.75 $ 1.04 53%
======= ======= ======= ======= =======
CORE DILUTED EARNINGS PER SHARE EXCLUDING
GOODWILL AMORTIZATION $ 0.70 $ 0.72 $ 0.71 $ 0.76 $ 1.05 50%
======= ======= ======= ======= =======
ADJUSTED WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO DILUTED EPS 3,440.0 3,450.3 3,440.2 3,443.6 3,435.7
======= ======= ======= ======= =======
PREFERRED DIVIDENDS - DILUTED $ 37 $ 35 $ 34 $ 33 $ 30
======= ======= ======= ======= =======
COMMON SHARES OUTSTANDING, AT PERIOD END 3,380.3 3,376.7 3,366.8 3,367.5 3,370.6
======= ======= ======= ======= =======
TIER 1 CAPITAL RATIO * 8.86% 9.37% 9.59% 9.65% 9.7% **
======= ======= ======= ======= =======
TOTAL CAPITAL RATIO * 11.54% 12.07% 12.28% 12.33% 12.4% **
======= ======= ======= ======= =======
LEVERAGE RATIO * 6.24% 6.38% 6.62% 6.80% 6.7% **
TOTAL ASSETS, AT PERIOD END (IN BILLIONS) * $ 690.5 $ 689.1 $ 686.8 $ 715.7 $ 739 **
======= ======= ======= ======= =======
STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS) * $ 43.8 $ 44.9 $ 46.3 $ 48.9 $ 50.3 **
======= ======= ======= ======= =======
BOOK VALUE PER SHARE, AT PERIOD END * $ 12.35 $ 12.68 $ 13.14 $ 13.95 $ 14.40 **
======= ======= ======= ======= =======
RETURN ON COMMON EQUITY (NET INCOME) * 23.1% 22.9% 22.0% 22.8% 29.8% **
======= ======= ======= ======= =======
RETURN ON COMMON EQUITY (CORE INCOME) * 23.6% 23.2% 22.1% 22.6% 29.9% **
======= ======= ======= ======= =======
</TABLE>
* Restated to reflect the conversion of Nikko debt securities to equity
securities.
** Preliminary
Page 1
<PAGE>
CITIGROUP -- SEGMENT NET REVENUES
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
-------- -------- -------- -------- -------- -----------------
<S> <C> <C> <C> <C> <C> <C>
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America $ 505 $ 517 $ 526 $ 557 $ 576 14%
Mortgage Banking 171 183 199 196 204 19%
Cards 1,976 1,991 1,986 2,052 1,996 1%
CitiFinancial 361 396 421 441 462 28%
-------- -------- -------- -------- --------
Total Banking / Lending 3,013 3,087 3,132 3,246 3,238 7%
INSURANCE
Travelers Life and Annuity 771 867 869 887 1,010 31%
Primerica Financial Services 432 443 444 456 472 9%
Personal Lines 983 1,005 1,018 1,037 1,027 4%
-------- -------- -------- -------- --------
Total Insurance 2,186 2,315 2,331 2,380 2,509 15%
INTERNATIONAL
Europe, Middle East and Africa 561 563 607 597 593 6%
Asia Pacific 519 544 581 607 683 32%
Latin America 464 497 502 512 520 12%
-------- -------- -------- -------- --------
Total International 1,544 1,604 1,690 1,716 1,796 16%
e-CITI 54 55 57 67 82 52%
OTHER 31 24 15 - 10 (68%)
-------- -------- -------- -------- --------
TOTAL GLOBAL CONSUMER 6,828 7,085 7,225 7,409 7,635 12%
-------- -------- -------- -------- --------
GLOBAL CORPORATE AND INVESTMENT BANK:
Salomon Smith Barney 3,341 3,269 2,791 3,279 4,186 25%
GLOBAL CORPORATE BANK
Emerging Markets 1,143 1,095 1,054 1,049 1,240 8%
Global Relationship Banking 1,090 1,008 985 1,000 1,168 7%
-------- -------- -------- -------- --------
Total Global Corporate Bank 2,233 2,103 2,039 2,049 2,408 8%
Commercial Lines 1,534 1,558 1,578 1,595 1,568 2%
-------- -------- -------- -------- --------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 7,108 6,930 6,408 6,923 8,162 15%
-------- -------- -------- -------- --------
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
SSB Citi Asset Management Group 355 359 369 408 428 21%
Global Private Bank 274 300 304 331 362 32%
-------- -------- -------- -------- --------
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 629 659 673 739 790 26%
-------- -------- -------- -------- --------
CORPORATE / OTHER (60) 6 (44) (102) (99) 65%
-------- -------- -------- -------- --------
INVESTMENT ACTIVITIES 153 270 311 356 1,015 563%
-------- -------- -------- -------- --------
TOTAL ADJUSTED NET REVENUES $ 14,658 $ 14,950 $ 14,573 $ 15,325 $ 17,503 19%
-------- -------- -------- -------- --------
</TABLE>
Page 2
<PAGE>
CITIGROUP -- SEGMENT CORE INCOME
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
------- ------- ------- ------- ------- -----------------
<S> <C> <C> <C> <C> <C> <C>
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America $ 72 $ 104 $ 110 $ 121 $ 138 92%
Mortgage Banking 61 53 60 57 63 3%
Cards 276 275 297 325 297 8%
CitiFinancial 71 78 135 108 112 58%
------- ------- ------- ------- -------
Total Banking / Lending 480 510 602 611 610 27%
INSURANCE
Travelers Life and Annuity 147 173 168 135 187 27%
Primerica Financial Services 110 113 114 115 119 8%
Personal Lines 83 79 23 94 75 (10%)
------- ------- ------- ------- -------
Total Insurance 340 365 305 344 381 12%
INTERNATIONAL
Europe, Middle East and Africa 67 73 98 83 99 48%
Asia Pacific 101 107 117 118 166 64%
Latin America 46 41 54 81 70 52%
------- ------- ------- ------- -------
Total International 214 221 269 282 335 57%
e-CITI (35) (41) (49) (47) (93) (166%)
OTHER (18) (24) (12) (23) (26) (44%)
------- ------- ------- ------- -------
TOTAL GLOBAL CONSUMER 981 1,031 1,115 1,167 1,207 23%
------- ------- ------- ------- -------
GLOBAL CORPORATE AND INVESTMENT BANK:
Salomon Smith Barney 648 610 432 664 957 48%
GLOBAL CORPORATE BANK
Emerging Markets 324 295 311 267 396 22%
Global Relationship Banking 196 153 147 167 247 26%
------- ------- ------- ------- -------
Total Global Corporate Bank 520 448 458 434 643 24%
Commercial Lines 189 201 255 200 240 27%
------- ------- ------- ------- -------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 1,357 1,259 1,145 1,298 1,840 36%
------- ------- ------- ------- -------
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
SSB Citi Asset Management Group 80 84 82 77 90 13%
Global Private Bank 57 73 73 76 82 44%
------- ------- ------- ------- -------
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 137 157 155 153 172 26%
------- ------- ------- ------- -------
CORPORATE / OTHER (150) (133) (159) (226) (251) (67%)
------- ------- ------- ------- -------
INVESTMENT ACTIVITIES 90 163 194 213 634 604%
------- ------- ------- ------- -------
TOTAL CORE INCOME $ 2,415 $ 2,477 $ 2,450 $ 2,605 $ 3,602 49%
------- ------- ------- ------- -------
</TABLE>
Page 3
<PAGE>
GLOBAL CONSUMER - BANKING/LENDING
CITIBANKING NORTH AMERICA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
------ ------ ------ ------ ------ -----------------
<S> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 505 $ 517 $ 526 $ 557 $ 576 14%
Adjusted Operating Expenses 357 322 327 338 335 (6%)
Provision for Loan Losses 23 15 11 15 9 (61%)
------ ------ ------ ------ ------
Core Income Before Taxes 125 180 188 204 232 86%
Income Taxes 53 76 78 83 94 77%
------ ------ ------ ------ ------
Core Income $ 72 $ 104 $ 110 $ 121 $ 138 92%
====== ====== ====== ====== ======
Average Assets (in billions of dollars) $ 10 $ 10 $ 9 $ 9 $ 9 (10%)
====== ====== ====== ====== ======
Return on Assets 2.92% 4.17% 4.85% 5.33% 6.17%
====== ====== ====== ====== ======
Average Loans (in billions of dollars) $ 7.7 $ 7.7 $ 7.5 $ 7.4 $ 7.3 (5%)
Average Customer Deposits (in billions of dollars) $ 41.6 $ 42.2 $ 42.2 $ 42.4 $ 43.5 5%
EOP Accounts (in millions) 5.9 6.0 6.2 6.3 6.3 7%
Non-Interest Revenue as % of Total Revenues 26.6% 26.6% 25.3% 25.9% 27.4%
Net Credit Loss Ratio 1.27% 1.20% 1.03% 1.23% 0.96%
Loans 90+Days Past Due:
In millions of dollars $ 103 $ 92 $ 64 $ 55 $ 48 (53%)
% 1.34% 1.20% 0.87% 0.75% 0.66%
Mutual Fund / UIT Sales at NAV (in millions of dollars) $ 902 $ 904 $ 700 $ 886 $1,399 55%
Variable Annuity Premiums & Deposits (in millions of dollars) $ 127 $ 210 $ 169 $ 233 $ 302 138%
Branches 380 372 373 371 371 (2%)
ATM-only locations 69 53 54 52 54 (22%)
Proprietary ATMs 2,163 2,063 2,050 2,050 2,050 (5%)
</TABLE>
Page 4
<PAGE>
GLOBAL CONSUMER - BANKING/LENDING
MORTGAGE BANKING (1)
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
--------- ------- ----- ------ ------ -----------------
<S> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 171 $ 183 $ 199 $ 196 $ 204 19%
Adjusted Operating Expenses 59 82 90 89 88 49%
Provision for Loan Losses 3 5 2 7 5 67%
--------- ------- ----- ------ ------
Core Income Before Taxes and Minority Interest 109 96 107 100 111 2%
Income Taxes 43 38 43 38 43 -
Minority Interest, Net of Tax 5 5 4 5 5 -
--------- ------- ----- ------ ------
Core Income $ 61 $ 53 $ 60 $ 57 $ 63 3%
========= ======= ===== ====== ======
Average Assets (in billions of dollars) $ 28 $ 29 $ 29 $ 31 $ 33 18%
========= ======= ===== ====== ======
Return on Assets 0.88% 0.73% 0.82% 0.73% 0.77%
========= ======= ===== ====== ======
EOP ACCOUNTS OWNED AND SERVICED:
Student Loans 2.2 2.3 2.5 2.7 2.8 27%
Mortgages 0.5 0.6 0.6 0.6 0.6 20%
Consumer Finance 0.1 0.1 0.1 0.1 0.1 -
--------- ------- ----- ------ ------
Total 2.8 3.0 3.2 3.4 3.5 25%
========= ======= ===== ====== ======
TOTAL SERVICED AVERAGE LOANS (IN BILLION OF DOLLARS):
Mortgages (2) $ 16.4 $ 17.0 $ 17.2 $ 17.6 $ 18.9 15%
Student Loans 9.2 9.2 9.3 10.6 11.6 26%
Consumer Finance 1.0 1.1 0.6 0.4 0.4 (60%)
--------- ------- ----- ------ ------
Average Loans 26.6 27.3 27.1 28.6 30.9 16%
Other Serviced Loans 40.5 46.4 51.0 52.5 54.1 34%
--------- ------- ----- ------ ------
Total $ 67.1 $ 73.7 $ 78.1 $ 81.1 $ 85.0 27%
========= ======= ===== ====== ======
Mortgage Originations (in billions of dollars) $ 3.8 $ 4.9 $ 4.7 $ 4.9 $ 3.4 (11%)
Student Loan Originations $ 0.7 $ 0.3 $ 0.7 $ 0.6 $ 1.0 43%
Consumer Finance Originations $ 0.2 $ 0.3 $ 0.2 $ 0.2 $ 0.2 -
Net Credit Loss Ratio 0.20% 0.17% 0.12% 0.15% 0.14%
Loans 90+ Days Past Due:
In millions of dollars $ 610 $ 575 $ 629 $ 696 $ 719 18%
% 2.29% 2.09% 2.28% 2.31% 2.29%
</TABLE>
(1) Includes Student Loans.
(2) Includes loans held for sale.
Page 5
<PAGE>
GLOBAL CONSUMER - BANKING/LENDING
CARDS (1)
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
--------- --------- --------- --------- --------- ------------------
<S> <C> <C> <C> <C> <C> <C>
Adjusted Revenues, Net of Interest Expense $ 1,976 $ 1,991 $ 1,986 $ 2,052 $ 1,996 1%
Adjusted Operating Expenses 724 725 708 734 727 -
Adjusted Provision for Loan Losses (2) 818 832 804 805 799 (2%)
--------- --------- --------- --------- ---------
Core Income Before Taxes 434 434 474 513 470 8%
Income Taxes 158 159 177 188 173 9%
--------- --------- --------- --------- ---------
Core Income $ 276 $ 275 $ 297 $ 325 $ 297 8%
========= ========= ========= ========= =========
Managed Average Assets (in billions of dollars) $ 73 $ 75 $ 76 $ 76 $ 78 7%
========= ========= ========= ========= =========
Return on Managed Assets 1.53% 1.47% 1.55% 1.70% 1.53%
========= ========= ========= ========= =========
U.S. BANKCARDS DATA :
(in billions of dollars)
Net Interest Revenue (in millions of dollars) (3) $ 1,499 $ 1,451 $ 1,470 $ 1,480 $ 1,460 (3%)
% of Average Managed Loans 9.02% 8.37% 8.37% 8.37% 8.12%
Risk Adjusted Margin (in millions of dollars) (4) $ 1,067 $ 1,070 $ 1,097 $ 1,160 $ 1,101 3%
% of Average Managed Loans 6.42% 6.18% 6.24% 6.57% 6.13%
Adjusted Operating Expenses as % of Average
Managed Loans 3.81% 3.68% 3.54% 3.69% 3.57%
End of Period Managed Receivables $ 69.4 $ 70.3 $ 70.7 $ 74.2 $ 73.3 6%
Total EOP Open Accounts (in millions) 41.4 41.1 40.6 40.6 40.8 (1%)
Total Sales $ 36.8 $ 40.8 $ 40.9 $ 43.8 $ 42.3 15%
END OF PERIOD LOANS:
On Balance Sheet $ 19.4 $ 20.0 $ 19.1 $ 22.7 $ 23.0 19%
Securitized 46.7 47.4 48.5 49.0 48.0 3%
Held for Sale 2.9 2.8 2.5 2.0 2.0 (31%)
--------- --------- --------- --------- ---------
Total $ 69.0 $ 70.2 $ 70.1 $ 73.7 $ 73.0 6%
========= ========= ========= ========= =========
AVERAGE LOANS:
On Balance Sheet $ 20.2 $ 20.0 $ 19.3 $ 19.5 $ 22.1 9%
Securitized 44.3 46.7 47.9 48.6 48.2 9%
Held for Sale 2.9 2.8 2.5 2.0 2.0 (31%)
--------- --------- --------- --------- ---------
Total $ 67.4 $ 69.5 $ 69.7 $ 70.1 $ 72.3 7%
========= ========= ========= ========= =========
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
On Balance Sheet $ 196 $ 233 $ 221 $ 224 $ 263 34%
Securitized 556 541 525 537 499 (10%)
Held for Sale 32 29 27 22 20 (38%)
--------- --------- --------- --------- ---------
Total $ 784 $ 803 $ 773 $ 783 $ 782 -
========= ========= ========= ========= =========
Coincident Net Credit Loss Ratio 4.72% 4.63% 4.40% 4.43% 4.35%
12 Month Lagged Net Credit Loss Ratio (5) 5.34% 5.12% 4.77% 4.59% 4.36%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 1,007 $ 954 $ 995 $ 1,061 $ 1,058 5%
% 1.46% 1.36% 1.42% 1.44% 1.45%
</TABLE>
(1) Includes U.S. Bankcards, North America Diners Club, and Canada bankcards.
(2) On a managed basis.
(3) Includes delinquency and other risk-based charges.
(4) Risk Adjusted Margin is adjusted revenues less net credit losses.
(5) Adjusted for acquisitions.
Page 6
<PAGE>
GLOBAL CONSUMER - BANKING/LENDING
CITIFINANCIAL
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
---------- ---------- ---------- ---------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense* $ 361 $ 396 $ 421 $ 441 $ 462 28%
Adjusted Operating Expenses 144 154 133 186 188 31%
Provision for Benefits, Claims, and Credit Losses 104 117 77 87 97 (7%)
---------- ---------- ---------- ---------- ----------
Core Income Before Taxes 113 125 211 168 177 57%
Income Taxes 42 47 76 60 65 55%
---------- ---------- ---------- ---------- ----------
Core Income $ 71 $ 78 $ 135 $ 108 $ 112 58%
========== ========== ========== ========== ==========
Average Assets (in billions of dollars) $ 14 $ 15 $ 16 $ 18 $ 18 29%
========== ========== ========== ========== ==========
Return on Assets 2.06% 2.09% 3.35% 2.38% 2.50%
========== ========== ========== ========== ==========
NET RECEIVABLES:
Real estate-secured loans (1) $ 7,179.5 $ 7,699.2 $ 8,439.6 $ 9,031.6 $ 9,354.6 30%
Personal loans (2) 4,647.2 4,886.2 5,102.5 5,319.7 5,408.3 16%
Sales finance and other 1,033.8 1,032.1 1,069.7 1,152.0 1,232.5 19%
---------- ---------- ---------- ---------- ----------
Consumer finance receivables,
net of unearned finance charges 12,860.5 13,617.5 14,611.8 15,503.3 15,995.4 24%
Accrued interest receivable 99.3 106.5 121.7 133.2 126.5 27%
Allowance for credit losses (388.7) (436.4) (424.1) (407.8) (423.4) 9%
---------- ---------- ---------- ---------- ----------
Consumer finance receivables, net $ 12,571.1 $ 13,287.6 $ 14,309.4 $ 15,228.7 $ 15,698.5 25%
========== ========== ========== ========== ==========
Number of offices 1,143 1,177 1,173 1,174 1,182 3%
Average yield 14.38% 14.48% 14.58% 14.35% 14.13%
Average net interest margin 8.42% 8.58% 8.56% 8.30% 8.04%
Net credit loss ratio (3) 2.38% 2.14% 2.00% 2.19% 1.92%
Reserves as % of net receivables 3.02% 3.20% 2.90% 2.63% 2.65%
Loans 90+ Days Past Due:
In millions of dollars (3) 183 172 186 203 216 18%
% 1.42% 1.26% 1.27% 1.31% 1.33%
(1) Includes fully secured $.M.A.R.T. receivables,
as follows: $ 2,817.6 $ 3,117.4 $ 3,415.7 $ 3,766.0 $ 4,106.1 46%
(2) Includes $.A.F.E. and partially secured
$.M.A.R.T. receivables, as follows: $ 337.9 $ 334.2 $ 331.2 $ 329.6 $ 319.1 (6%)
(3) Includes loans held for sale
</TABLE>
* Excludes realized gains on investments
Page 7
<PAGE>
GLOBAL CONSUMER - INSURANCE
TRAVELERS LIFE AND ANNUITY - PAGE 1
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
--------- --------- --------- --------- --------- -----------------
<S> <C> <C> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 771 $ 867 $ 869 $ 887 $ 1,010 31%
CORE INCOME $ 147 $ 173 $ 168 $ 135 $ 187 27%
PRE-TAX CONTRIBUTION BY SOURCE:
Individual annuities $ 88.4 $ 105.5 $ 93.0 $ 86.1 $ 107.8 22%
Group annuities 59.9 77.3 77.1 65.2 92.1 54%
Life and long term care insurance 39.8 50.5 43.9 39.8 59.4 49%
Other (includes run-off and return on excess capital) 33.0 28.8 39.3 17.4 20.3 (38%)
--------- --------- --------- --------- ---------
Total $ 221.1 $ 262.1 $ 253.3 $ 208.5 $ 279.6 26%
========= ========= ========= ========= =========
INDIVIDUAL ANNUITIES:
Net written premiums & deposits:
Fixed $ 194.2 $ 249.7 $ 271.0 $ 292.6 $ 293.5 51%
Variable 975.7 1,048.3 1,089.8 1,151.3 1,245.0 28%
Individual Payout 20.6 15.9 20.9 21.4 20.5 -
--------- --------- --------- --------- ---------
Total $ 1,190.5 $ 1,313.9 $ 1,381.7 $ 1,465.3 $ 1,559.0 31%
========= ========= ========= ========= =========
Policyholder account balances & benefit reserves: (1)
Fixed $ 7,839.3 $ 7,874.2 $ 7,958.5 $ 7,993.6 $ 7,911.3 1%
Variable 14,172.9 15,770.8 15,897.0 19,310.6 21,072.7 49%
Individual Payout 599.6 604.4 611.8 617.3 619.6 3%
--------- --------- --------- --------- ---------
Total $22,611.8 $24,249.4 $24,467.3 $27,921.5 $29,603.6 31%
========= ========= ========= ========= =========
GROUP ANNUITIES:
Net written premiums & deposits (2) $ 1,859.6 $ 1,609.2 $ 1,212.3 $ 937.5 $ 1,456.9 (22%)
Policyholder account balances & benefit reserves: (1)
GICs and other investment contracts $ 9,766.4 $10,982.9 $10,917.7 $10,753.8 $11,087.0 14%
Payout group annuities 4,175.1 4,236.9 4,284.9 4,362.7 4,514.9 8%
--------- --------- --------- --------- ---------
Total $13,941.5 $15,219.8 $15,202.6 $15,116.5 $15,601.9 12%
========= ========= ========= ========= =========
</TABLE>
(1) Includes general account, separate accounts and managed funds.
(2) Excludes deposits of $24.0 in the first quarter of 2000 and $23.2, $416.0,
$70.0 and $71.0 in the 1999 first, second, third and fourth quarters,
related to Travelers plans previously managed externally.
* Excludes realized gains on investments
Page 8
<PAGE>
GLOBAL CONSUMER - INSURANCE
TRAVELERS LIFE AND ANNUITY - PAGE 2
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
--------- --------- --------- --------- --------- -----------------
<S> <C> <C> <C> <C> <C> <C>
INDIVIDUAL LIFE INSURANCE:
Net written premiums and deposits:
Direct periodic premiums and deposits $ 84.5 $ 86.7 $ 88.3 $ 149.2 $ 116.7 38%
Single premium deposits 16.2 20.8 17.2 30.0 18.3 13%
Reinsurance (16.8) (17.8) (17.9) (18.5) (19.1) 14%
--------- --------- --------- --------- ---------
Total $ 83.9 $ 89.7 $ 87.6 $ 160.7 $ 115.9 38%
========= ========= ========= ========= =========
Policyholder account balances & benefit reserves $ 2,468.3 $ 2,511.0 $ 2,535.3 $ 2,682.0 $ 2,755.3 12%
Life insurance in force (in billions, face amt.) $ 56.6 $ 57.7 $ 58.4 $ 60.6 $ 61.7 9%
Life insurance issued (in billions, face amt.) $ 2.5 $ 2.4 $ 2.0 $ 3.8 $ 2.7 8%
INDIVIDUAL LONG TERM CARE INSURANCE:
Number of policies in force (000) 125.9 129.2 132.5 136.2 139.5 11%
Net earned premiums $ 55.2 $ 56.5 $ 58.2 $ 60.1 $ 61.7 12%
Net written premiums $ 52.6 $ 59.8 $ 59.5 $ 67.8 $ 59.1 12%
ALL BUSINESSES:
Net investment income (pretax) $ 525.4 $ 578.8 $ 593.2 $ 579.1 $ 594.9 13%
Interest credited to contractholders $ 225.7 $ 230.9 $ 239.0 $ 241.4 $ 244.7 8%
STATUTORY DATA:
TRAVELERS INSURANCE COMPANY
Statutory capital and surplus $ 4,955.9 $ 4,976.9 $ 5,010.2 $ 5,027.3 $ 5,011.2 1%
Surplus to liabilities ratio 19.8% 19.5% 20.2% 21.2% 20.5%
</TABLE>
Page 9
<PAGE>
GLOBAL CONSUMER - INSURANCE
PRIMERICA FINANCIAL SERVICES
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
---------- ---------- ---------- ---------- ---------- -----------------
<S> <C> <C> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 432 $ 443 $ 444 $ 456 $ 472 9%
CORE INCOME
Life insurance $ 86 $ 89 $ 88 $ 84 $ 87 1%
Other financial products 24 24 26 31 32 33%
---------- ---------- ---------- ---------- ----------
Total core income $ 110 $ 113 $ 114 $ 115 $ 119 8%
========== ========== ========== ========== ==========
LIFE INSURANCE
Face value (in billions) of:
Life insurance issued $ 13.6 $ 15.5 $ 12.4 $ 14.7 $ 15.0 10%
Life insurance in force $ 386.3 $ 391.7 $ 392.8 $ 394.9 $ 397.8 3%
Annualized issued premiums $ 42.4 $ 48.4 $ 39.3 $ 43.4 $ 44.1 4%
Direct premiums $ 315.2 $ 321.0 $ 320.5 $ 322.9 $ 324.5 3%
Earned premiums $ 267.1 $ 268.6 $ 264.8 $ 270.8 $ 270.6 1%
OTHER PRODUCTS
Mutual fund sales at NAV:
Proprietary $ 407.7 $ 453.1 $ 393.7 $ 389.3 $ 465.0 14%
Other funds 233.5 277.3 257.6 307.6 497.1 113%
---------- ---------- ---------- ---------- ----------
Total U.S. mutual fund sales 641.2 730.4 651.3 696.9 962.1 50%
Mutual fund sales - Canada 143.2 76.2 86.1 98.2 228.8 60%
---------- ---------- ---------- ---------- ----------
Total mutual fund sales $ 784.4 $ 806.6 $ 737.4 $ 795.1 $ 1,190.9 52%
========== ========== ========== ========== ==========
Cash advanced on $.M.A.R.T. and $.A.F.E. loans (1) $ 419.2 $ 492.7 $ 488.3 $ 519.8 $ 492.0 17%
Variable annuity net written premiums and deposits $ 223.4 $ 278.6 $ 247.6 $ 240.5 $ 249.9 12%
SECURE net written premiums (2), (3) $ 57.2 $ 62.6 $ 58.5 $ 46.3 $ - (100%)
AGENTS LICENSED FOR:
Life insurance 79,738 79,251 77,259 79,809 79,818 0%
Mutual funds 27,129 27,053 26,873 24,566 25,570 (6%)
$.M.A.R.T. / $.A.F.E. loans 129,556 118,762 108,377 95,816 93,055 (28%)
Variable annuities 13,816 14,497 16,042 16,424 16,453 19%
Long term care - - 3,419 6,540 8,010 NM
Home & auto insurance 15,102 14,734 15,425 14,284 13,238 (12%)
Financial Needs Analyses submitted 142,451 122,958 111,136 113,748 110,900 (22%)
</TABLE>
(1) The $.M.A.R.T. and $.A.F.E. loan products are marketed by PFS; the
receivables are reflected in the assets of CitiFinancial.
(2) The SECURE property casualty insurance products are marketed by PFS; the
premiums are reflected in the operating earnings of Travelers Property
Casualty Corp.
(3) PFS discontinued marketing the SECURE products in November 1999.
* Excludes realized gains on investments
NM Not Meaningful
Page 10
<PAGE>
GLOBAL CONSUMER - INSURANCE
TRAVELERS PROPERTY CASUALTY - PERSONAL LINES
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
------- -------- -------- -------- -------- -----------------
<S> <C> <C> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 983 $ 1,005 $ 1,018 $ 1,037 $ 1,027 4%
CORE INCOME $ 83 $ 79 $ 23 $ 94 $ 75 (10%)
NET WRITTEN PREMIUMS BY PRODUCT LINE:(1)
Auto $ 619.6 $ 597.0 $ 581.1 $ 571.0 $ 583.3 (6%)
Homeowners and other 363.8 353.9 370.6 347.8 306.4 (16%)
--------- ---------- ---------- ---------- ----------
Total net written premiums(a) $ 983.4 $ 950.9 $ 951.7 $ 918.8 $ 889.7 (10%)
========= ========== ========== ========== ==========
NET WRITTEN PREMIUMS BY DISTRIBUTION CHANNEL: (1)
Independent agents $ 791.6 $ 750.6 $ 743.0 $ 721.2 $ 710.2 (10%)
Affinity group marketing 83.0 84.5 92.1 93.7 97.3 17%
SECURE 57.2 62.6 58.5 46.3 30.8 (46%)
Joint marketing arrangements 51.6 53.2 58.1 57.6 51.4 --
--------- ---------- ---------- ---------- ----------
Total net written premiums(a) $ 983.4 $ 950.9 $ 951.7 $ 918.8 $ 889.7 (10%)
========= ========== ========== ========== ==========
STATUTORY RATIO DEVELOPMENT:
Earned premiums(b) $ 892.1 $ 905.1 $ 915.5 $ 921.6 $ 910.3 2%
Losses and loss adjustment expenses(c) 594.3 627.1 702.7 619.8 656.4 10%
Other underwriting expenses(d) 269.8 242.5 258.7 244.7 239.8 (11%)
--------- ---------- ---------- ---------- ----------
Total deductions 864.1 869.6 961.4 864.5 896.2 4%
--------- ---------- ---------- ---------- ----------
Statutory underwriting gain/(loss) $ 28.0 $ 35.5 $ (45.9) $ 57.1 $ 14.1 (50%)
========= ========== ========== ========== ==========
STATUTORY COMBINED RATIO:(1)
Loss and loss adjustment expense ratio(c / b) 66.6% 69.3% 76.8% 67.3% 72.1%
Other underwriting expense ratio(d / a) 27.4% 25.5% 27.2% 26.6% 27.0%
--------- ---------- ---------- ---------- ----------
Combined ratio 94.0% 94.8% 104.0% 93.9% 99.1%
========= ========== ========== ========== ==========
Net investment income (pre-tax) $ 90.4 $ 98.8 $ 102.0 $ 109.0 $ 112.6 25%
Effective tax rate on net investment income 27.2% 27.7% 28.4% 28.9% 29.3%
Catastrophe losses, net of reinsurance (after-tax) $ 8.1 $ 23.2 $ 48.2 $ -- $ 30.4 275%
</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 statutory 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.
* Excludes realized gains on investments
Page 11
<PAGE>
GLOBAL CONSUMER - INTERNATIONAL
EUROPE, MIDDLE EAST AND AFRICA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
-------- --------- -------- -------- -------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 561 $ 563 $ 607 $ 597 $ 593 6%
Adjusted Operating Expenses 374 369 370 388 362 (3%)
Provision for Benefits, Claims, and Credit Losses 80 77 79 76 74 (8%)
----------- ------------ ----------- ----------- -----------
Core Income Before Taxes 107 117 158 133 157 47%
Income Taxes 40 44 60 50 58 45%
----------- ------------ ----------- ----------- -----------
Core Income $ 67 $ 73 $ 98 $ 83 $ 99 48%
=========== ============ =========== =========== ===========
Average Assets (in billions of dollars) $ 22 $ 22 $ 23 $ 22 $ 22 --
=========== ============ =========== =========== ===========
Return on Assets 1.24% 1.33% 1.69% 1.50% 1.81%
=========== ============ =========== =========== ===========
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Personal $ 10.0 $ 9.8 $ 10.4 $ 10.2 $ 9.8 (2%)
Cards 2.1 2.1 2.1 2.2 2.1 --
Mortgages 1.9 1.8 1.9 1.8 1.8 (5%)
Auto 1.5 1.5 1.6 1.6 1.7 13%
Other 1.2 1.2 1.3 1.4 1.4 17%
----------- ------------ ----------- ----------- -----------
Total $ 16.7 $ 16.4 $ 17.3 $ 17.2 $ 16.8 1%
========== =========== ========== ========== ===========
Average Customer Deposits (in billions of dollars) $ 17.6 $ 17.1 $ 17.0 $ 16.6 $ 16.5 (6%)
EOP Accounts (in millions) 10.6 10.7 10.9 11.1 11.4 8%
EOP Card Accounts (in millions) 3.6 3.5 3.5 3.6 3.6 --
Non-Interest Revenue as % of Total Revenues 35.6% 34.8% 36.2% 38.9% 36.7%
Net Credit Loss Ratio 1.81% 1.71% 1.60% 1.56% 1.70%
Loans 90+ Days Past Due:
In millions of dollars $ 893 $ 899 $ 953 $ 914 $ 875 (2%)
% 5.40% 5.46% 5.45% 5.33% 5.26%
Mutual Fund Sales at NAV (in millions of dollars) $ 820 $ 1,212 $ 758 $ 830 $ 949 16%
Branches 471 466 464 466 470 --
ATM-only locations 74 78 78 76 79 7%
Proprietary ATMs 891 890 893 899 902 1%
</TABLE>
Page 12
<PAGE>
GLOBAL CONSUMER - INTERNATIONAL
ASIA PACIFIC
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
-------- --------- --------- --------- --------- -------------
<S> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 519 $ 544 $ 581 $ 607 $ 683 32%
Adjusted Operating Expenses 268 283 316 320 338 26%
Provision for Benefits, Claims, and Credit Losses 88 89 77 99 79 (10%)
----------- ------------ ------------ ------------ ------------
Core Income Before Taxes 163 172 188 188 266 63%
Income Taxes 62 65 71 70 100 61%
----------- ------------ ------------ ------------ ------------
Core Income $ 101 $ 107 $ 117 $ 118 $ 166 64%
=========== ============ ============ ============ ============
Average Assets (in billions of dollars) $ 29 $ 30 $ 31 $ 32 $ 33 14%
=========== ============ ============ ============ ============
Return on Assets 1.41% 1.43% 1.50% 1.46% 2.02%
=========== ============ ============ ============ ============
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Mortgages $ 12.5 $ 13.0 $ 13.4 $ 13.9 $ 14.0 12%
Cards 4.5 4.6 4.8 5.0 5.4 20%
Auto 2.1 2.2 2.2 2.2 2.3 10%
Personal 2.1 2.1 2.2 2.3 2.3 10%
Other 0.9 1.0 1.1 1.1 1.1 22%
----------- ------------ ------------ ------------ ------------
Total $ 22.1 $ 22.9 $ 23.7 $ 24.5 $ 25.1 14%
=========== ============ ============ ============ ============
Average Customer Deposits (in billions of dollars) $ 39.9 $ 40.6 $ 42.5 $ 45.4 $ 46.4 16%
EOP Accounts (in millions) 8.1 8.6 9.0 9.2 10.0 23%
EOP Card Accounts (in millions) 4.3 4.4 4.5 4.7 5.3 23%
Non-Interest Revenue as % of Total Revenues 29.8% 31.2% 30.7% 29.9% 36.9%
Net Credit Loss Ratio 1.43% 1.33% 1.23% 1.15% 1.19%
Loans 90+ Days Past Due:
In millions of dollars $ 513 $ 509 $ 450 $ 453 $ 443 (14%)
% 2.31% 2.17% 1.87% 1.80% 1.73%
Mutual Fund Sales at NAV (in millions of dollars) $ 811 $ 1,021 $ 1,263 $ 1,500 $ 2,250 177%
Branches 84 86 89 92 93 11%
ATM-only locations 88 90 91 102 104 18%
Proprietary ATMs 332 341 344 353 361 9%
</TABLE>
Page 13
<PAGE>
GLOBAL CONSUMER - INTERNATIONAL
LATIN AMERICA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
--------- --------- -------- --------- ------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 464 $ 497 $ 502 $ 512 $ 520 12%
Adjusted Operating Expenses 292 300 303 302 323 11%
Provision for Loan Losses 101 135 117 94 90 (11%)
--------- --------- --------- --------- -------
Core Income Before Taxes 71 62 82 116 107 51%
Income Taxes 25 21 28 35 37 48%
--------- --------- --------- --------- -------
Core Income $ 46 $ 41 $ 54 $ 81 $ 70 52%
========= ========= ========= ========= =======
Average Assets (in billions of dollars) $ 14 $ 15 $ 14 $ 14 $ 14 --
========= ========= ========= ========= =======
Return on Assets 1.33% 1.10% 1.53% 2.30% 2.01%
========= ========= ========= ========= =======
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Cards $ 2.0 $ 2.0 $ 2.0 $ 2.1 $ 2.1 5%
Mortgages 2.0 1.9 1.9 1.9 2.0 --
Auto 1.9 1.7 1.6 1.6 1.4 (26%)
Personal 1.5 1.4 1.3 1.3 1.3 (13%)
Other 0.4 1.0 1.1 1.0 0.8 100%
--------- --------- --------- --------- -------
Total $ 7.8 $ 8.0 $ 7.9 $ 7.9 $ 7.6 (3%)
========= ========= ========= ========= =======
Average Customer Deposits (in billions of dollars) $ 12.8 $ 13.8 $ 13.6 $ 13.6 $ 13.7 7%
EOP Accounts (in millions) 8.0 7.8 9.0 8.8 9.2 15%
EOP Card Accounts (in millions) 2.1 2.1 2.8 2.6 2.6 24%
Non-Interest Revenue as % of Total Revenues 30.9% 36.3% 33.3% 34.2% 37.8%
Net Credit Loss Ratio 4.74% 6.17% 5.55% 4.71% 4.77%
Loans 90+ Days Past Due:
In millions of dollars $ 292 $ 346 $ 325 $ 320 $ 333 14%
% 3.75% 4.32% 4.10% 4.10% 4.58%
Mutual Fund Sales at NAV (in millions of dollars) $ 1,207 $ 1,334 $ 1,203 $ 1,282 $ 1,349 12%
Branches 466 447 450 447 453 (3%)
Consumer Finance Offices 43 43 116 116 116 170%
ATM-only locations 69 73 84 85 84 22%
Proprietary ATMs 398 401 475 487 492 24%
</TABLE>
Page 14
<PAGE>
GLOBAL CONSUMER
e-CITI
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
-------- -------- ------- -------- ------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 54 $ 55 $ 57 $ 67 $ 82 52%
Adjusted Operating Expenses 112 123 136 144 231 106%
Provision for Loan Losses 1 1 1 2 3 200%
-------- -------- ------- -------- -------
Loss Before Tax Benefits (59) (69) (80) (79) (152) (158%)
Income Tax Benefits (24) (28) (31) (32) (59) (146%)
-------- -------- ------- -------- -------
Loss $ (35) $ (41) $ (49) $ (47) $ (93) (166%)
======== ======== ======= ======== =======
</TABLE>
GLOBAL CONSUMER
OTHER CONSUMER (1)
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
-------- -------- ------- -------- ------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 31 $ 24 $ 15 $ -- $ 10 (68%)
Adjusted Operating Expenses 56 65 37 34 53 (5%)
-------- -------- ------- -------- -------
Loss Before Tax Benefits (25) (41) (22) (34) (43) (72%)
Income Tax Benefits (7) (17) (10) (11) (17) 143%
-------- -------- ------- -------- -------
Loss $ (18) $ (24) $ (12) $ (23) $ (26) (44%)
======== ======== ======= ======== ========
</TABLE>
(1) Includes unallocated marketing and staff expenses.
Page 15
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
SALOMON SMITH BARNEY (SEGMENT BASIS) - PAGE 1
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
------- ------- ------ ------ ------ -----------------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Commissions $ 900 $ 903 $ 812 $1,015 $1,309 45%
Asset management and administration fees 377 400 431 430 499 32%
Investment banking 655 762 760 793 905 38%
Principal transactions 974 698 328 544 860 (12%)
Other income 65 49 65 105 240 269%
------- ------- ------ ------ ------
Total non-interest revenues 2,971 2,812 2,396 2,887 3,813 28%
------- ------- ------ ------ ------
Interest and dividends 2,611 2,864 2,809 2,982 3,326 27%
Interest expense 2,241 2,407 2,414 2,590 2,953 32%
------- ------- ------ ------ ------
Net interest and dividends 370 457 395 392 373 1%
------- ------- ------ ------ ------
Total revenues, net of interest expense 3,341 3,269 2,791 3,279 4,186 25%
------- ------- ------ ------ ------
Non-interest expenses:
Compensation and benefits 1,794 1,707 1,556 1,587 2,005 12%
Communications 117 111 123 138 132 13%
Occupancy and equipment 106 104 109 109 118 11%
Floor brokerage and other production 101 125 113 128 149 48%
Other operating and administrative expenses 220 261 206 258 260 18%
------- ------- ------ ------ ------
Total non-interest expenses 2,338 2,308 2,107 2,220 2,664 14%
------- ------- ------ ------ ------
Core income before income taxes 1,003 961 684 1,059 1,522 52%
Provision for income taxes 355 351 252 395 565 59%
------- ------- ------ ------ ------
Core Income $ 648 $ 610 $ 432 $ 664 $ 957 48%
======= ======= ====== ====== ======
Total equity (in billions of dollars) (1) $ 9.6 $ 9.6 $ 9.9 $ 9.3 $ 9.9* 3%
Return on equity (1) 31.4% 29.1% 21.4% 31.2% 41.1%
Pre-tax profit margin 30.0% 29.4% 24.5% 32.3% 36.4%
Non-compensation expenses as a percent of
net revenues 16.3% 18.4% 19.7% 19.3% 15.7%
</TABLE>
(1) Total equity and return on equity (core income) for Salomon Smith Barney
are calculated on a legal entity basis.
* Preliminary.
Page 16
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
SALOMON SMITH BARNEY - PAGE 2
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
--------- --------- --------- --------- -------- -----------------
<S> <C> <C> <C> <C> <C> <C>
CLIENT ASSETS (IN BILLIONS OF DOLLARS)
ASSETS UNDER FEE-BASED MANAGEMENT:
Financial Consultant (FC) managed accounts $ 18.6 $ 20.2 $ 21.4 $ 27.4 $ 31.7 70%
Consulting Group externally managed assets 73.1 76.8 74.6 83.0 86.7 19%
--------- --------- --------- --------- ---------
Total assets under fee-based management $ 91.7 $ 97.0 $ 96.0 $ 110.4 $ 118.4 29%
========= ========= ========= ========= =========
Total client assets $ 816.0 $ 852.1 $ 844.6 $ 965.0 $ 1,032.2 26%
PRIVATE CLIENT
Registered Financial Consultants 10,918 11,032 11,086 11,333 11,414 5%
Annualized retail gross production per FC (000) $ 481 $ 477 $ 465 $ 498 $ 598 24%
Domestic retail offices 457 467 472 476 482 5%
INVESTMENT BANKING AND PUBLIC FINANCE
UNDERWRITING (FULL CREDIT TO BOOK MGR.):
DEBT AND EQUITY
Global volume (1) $92,794.4 $82,998.5 $79,961.9 $38,197.9 $92,125.5 (1%)
Global market share 10.2% 9.9% 10.7% 7.0% 9.3%
Rank 2 2 2 4 2
U.S. volume (2) $74,545.0 $68,254.7 $59,460.8 $28,273.6 $70,383.0 (6%)
U.S. market share 13.8% 13.8% 13.4% 8.6% 12.6%
Rank 2 2 2 3 2
MUNICIPALS
Volume (3) $ 7,146.4 $ 5,399.7 $ 8,612.2 $ 9,656.6 $ 3,239.9 (55%)
Market share 12.4% 9.6% 15.9% 18.9% 14.6%
Rank 1 1 1 1 1
CAPITAL MARKETS/RESEARCH
Number of institutional salespeople (4) 796 830 854 847 847 6%
Number of stocks in which markets are made 1,305 1,296 1,305 1,335 1,416 9%
% of S&P sectors covered by research 98% 98% 98% 98% 99%
</TABLE>
(1) Includes all non-convertible debt, Rule 144A non-convertible debt, Rule
144A non-convertible preferred, non-convertible preferred, preferred,
taxable municipal debt, mortgage and asset backed debt, all common stock,
convertible debt and convertible preferred. Excludes all closed end funds,
144A common stock, 144A convertible stock, and 144A convertible preferred.
(2) Includes all U.S. mortgage and asset backed debt, U.S. non-convertible
debt, U.S. Rule 144A non-convertible and U.S. taxable municipal debt, all
U.S. common stock, U.S. convertible debt and U.S. convertible preferred.
Excludes all closed end funds, 144A common stock, 144A convertible stock,
and 144A convertible preferred.
(3) Total long term excluding private placement.
(4) Excludes institutional salespeople at Nikko in the 1999 quarters and 2000
first quarter.
Page 17
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
TOTAL GLOBAL CORPORATE BANK
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
------- ------- ------ ------- ------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 2,233 $ 2,103 $ 2,039 $ 2,049 $ 2,408 8%
Adjusted Operating Expenses 1,291 1,274 1,267 1,264 1,262 (2%)
Provision for Loan Losses 111 110 37 90 121 9%
-------- ------- ------- ------- -------
Core Income Before Taxes and Minority Interest 831 719 735 695 1,025 23%
Income Taxes 310 269 276 259 380 23%
Minority Interest, Net of Tax 1 2 1 2 2 100%
-------- ------- ------- ------- -------
Core Income $ 520 $ 448 $ 458 $ 434 $ 643 24%
======== ======== ======= ======= =======
Average Assets (in billions of dollars) $ 168 $ 163 $ 156 $ 161 $ 167 (1%)
======== ======== ======= ======= =======
Return on Assets 1.26% 1.10% 1.16% 1.07% 1.55%
======== ======== ======= ======= =======
</TABLE>
GLOBAL CORPORATE BANK
EMERGING MARKETS
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
------- ------- ------ ------- ------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 1,143 $ 1,095 $ 1,054 $ 1,049 $ 1,240 8%
Adjusted Operating Expenses 507 510 519 528 523 3%
Provision for Loan Losses 115 110 32 90 84 (27%)
-------- ------- ------- ------- -------
Core Income Before Taxes and Minority Interest 521 475 503 431 633 21%
Income Taxes 196 178 191 162 235 20%
Minority Interest, Net of Tax 1 2 1 2 2 100%
-------- ------- ------- ------- -------
Core Income $ 324 $ 295 $ 311 $ 267 $ 396 22%
======== ======= ======= ======= =======
Average Assets (in billions of dollars) $ 81 $ 83 $ 81 $ 81 $ 83 2%
======== ======= ======= ======= =======
Return on Assets 1.62% 1.43% 1.52% 1.31% 1.92%
======== ======= ======= ======= =======
</TABLE>
GLOBAL CORPORATE BANK
GLOBAL RELATIONSHIP BANKING
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
------- ------- ------ ------- ------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 1,090 $ 1,008 $ 985 $ 1,000 $ 1,168 7%
Adjusted Operating Expenses 784 764 748 736 739 (6%)
Provision for Loan Losses (4) -- 5 -- 37 NM
------- ------- ------ ------- -------
Core Income Before Taxes 310 244 232 264 392 26%
Income Taxes 114 91 85 97 145 27%
------- ------- ------ ------- -------
Core Income $ 196 $ 153 $ 147 $ 167 $ 247 26%
======= ======= ====== ======= =======
Average Assets (in billions of dollars) $ 87 $ 80 $ 75 $ 80 $ 84 (3%)
======= ======= ====== ======= =======
Return on Assets 0.91% 0.77% 0.78% 0.83% 1.18%
======= ======= ====== ======= =======
NM Not meaningful
</TABLE>
Page 18
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
TRAVELERS PROPERTY CASUALTY - COMMERCIAL LINES
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
-------- -------- -------- -------- ------- -----------------
<S> <C> <C> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 1,534 $ 1,558 $ 1,578 $ 1,595 $ 1,568 2%
CORE INCOME $ 189 $ 201 $ 255 $ 200 $ 240 27%
NET WRITTEN PREMIUMS BY MARKET:
National accounts $ 149.9 $ 101.4 $ 148.8 $ 88.3 $ 92.0 (39%)
Commercial accounts 443.6 440.1 469.9 462.7 487.4 10%
Select accounts 372.3 393.4 355.4 373.0 387.3 4%
Specialty accounts 148.2 159.8 158.4 143.1 180.5 22%
-------- -------- -------- -------- --------
Total net written premiums (A) $1,114.0 $1,094.7 $1,132.5 $1,067.1 $1,147.2 3%
======== ======== ======== ======== ========
STATUTORY RATIO DEVELOPMENT:
Earned premiums (B) $1,072.7 $1,100.8 $1,110.3 $1,090.7 $1,079.0 1%
Losses and loss adjustment expenses (C) 817.5 827.2 928.8 832.2 792.7 (3%)
Other underwriting expenses (D) 317.9 333.8 349.8 350.6 320.4 1%
-------- -------- -------- -------- --------
Total deductions 1,135.4 1,161.0 1,278.6 1,182.8 1,113.1 (2%)
-------- -------- -------- -------- --------
Statutory underwriting loss $ (62.7) $ (60.2) $ (168.3) $ (92.1) $ (34.1) 46%
======== ======== ======== ======== ========
STATUTORY COMBINED RATIO: (1), (2)
Loss and loss adjustment expense ratio (C / B) 76.2% 75.1% 83.7% 76.3% 73.5%
Other underwriting expense ratio (D / A) 28.5% 30.5% 30.9% 32.9% 27.9%
-------- -------- -------- -------- --------
Combined ratio 104.7% 105.6% 114.6% 109.2% 101.4%
======== ======== ======== ======== ========
Net investment income (pre-tax) $ 412.6 $ 410.5 $ 420.2 $ 445.4 $ 435.9 6%
Effective tax rate on net investment income 26.6% 26.5% 26.7% 27.1% 26.9%
Catastrophe losses, net of reinsurance (after-tax) $ -- $ 9.9 $ 17.4 $ -- $ -- --
</TABLE>
(1) The 1999 third quarter includes the effect of a settlement of an asbestos
liability, which increased losses and loss adjustment expenses, for
statutory purposes only, by $105.2 million. Excluding this transaction, the
statutory loss and loss adjustment expense ratio, other underwriting
expense ratio, and combined ratio for the 1999 third quarter were 74.2%,
30.9% and 105.1%, respectively.
(2) Before policyholder dividends.
* Excludes realized gains on investments
Page 19
<PAGE>
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING
SSB CITI ASSET MANAGEMENT GROUP
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
-------- -------- -------- -------- -------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Investment advisory, admin. & distribution fees $ 341 $ 339 $ 345 $ 388 $ 413 21%
Unit Investment Trust revenues - net 9 10 21 8 12 33%
Other revenues 17 21 15 24 16 (6%)
-------- -------- -------- -------- --------
Total revenues 367 370 381 420 441 20%
Interest expense 12 11 12 12 13 8%
-------- -------- -------- -------- -------
Total revenues, net of interest expense 355 359 369 408 428 21%
-------- -------- -------- -------- --------
Expenses:
Employee compensation and benefits 107 100 111 124 135 26%
Mutual fund commission expense 30 28 34 28 29 (3%)
Other expenses 86 91 87 126 112 30%
-------- -------- -------- -------- --------
Total expenses 223 219 232 278 276 24%
-------- -------- -------- -------- --------
Core income before income taxes 132 140 137 130 152 15%
Provision for income taxes 52 56 55 53 62 19%
-------- -------- -------- -------- --------
Core income $ 80 $ 84 $ 82 $ 77 $ 90 13%
======== ======== ======== ======== ========
Pre-tax profit margin 37.2% 39.0% 37.1% 31.9% 35.3%
ASSETS UNDER MANAGEMENT BY PRODUCT TYPE (IN
BILLIONS OF DOLLARS):
Money market and institutional liquidity funds:
Retail $ 68.8 $ 67.8 $ 69.0 $ 72.0 $ 80.6 17%
Institutional 16.9 15.2 16.6 18.9 17.0 1%
-------- -------- -------- -------- --------
Total money market and institutional liquidity
funds 85.7 83.0 85.6 90.9 97.6 14%
-------- -------- -------- -------- --------
Long-term mutual funds:
Equity / Balanced 43.8 45.7 44.7 50.4 53.4 22%
Taxable Fixed Income 31.0 32.1 30.5 25.1 25.1 (19%)
Tax Exempt Fixed Income 10.9 10.2 9.7 8.8 8.5 (22%)
Annuities 4.1 4.5 4.6 5.4 5.8 41%
-------- -------- -------- -------- --------
Total long-term mutual funds 89.8 92.5 89.5 89.7 92.8 3%
-------- -------- -------- -------- --------
Managed accounts:
Private client 43.2 46.3 47.5 51.1 54.4 26%
Institutional 91.4 95.6 96.2 100.0 97.8 7%
-------- -------- -------- -------- --------
Total managed accounts 134.6 141.9 143.7 151.1 152.2 13%
-------- -------- -------- -------- --------
Alternative Investment Strategies 28.1 30.0 32.6 32.7 33.0 17%
-------- -------- -------- -------- --------
Total assets under management (1) $ 338.2 $ 347.4 $ 351.4 $ 364.4 $ 375.6 11%
======== ======== ======== ======== ========
ASSETS UNDER MANAGEMENT BY CLIENT TYPE (IN
BILLIONS OF DOLLARS):
Retail $ 198.1 $ 202.5 $ 202.5 $ 209.7 $ 225.0 14%
Institutional (including Alternate Investment
Strategies) 140.1 144.9 148.9 154.7 150.6 7%
-------- -------- -------- -------- --------
Total assets under management $ 338.2 $ 347.4 $ 351.4 $ 364.4 $ 375.6 11%
======== ======== ======== ======== ========
Unit Investment Trusts held in client accounts $ 13.2 $ 13.3 $ 12.8 $ 13.8 $ 13.5 2%
Number of Morningstar 4- and 5-star funds 22 17 20 20 20 (9%)
</TABLE>
(1) Includes $29, $35, $36 and $31 billion for the 1999 first, second, third
and fourth quarters, respectively, and $31 billion for the 2000 first
quarter for Global Private Bank clients.
Page 20
<PAGE>
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING
GLOBAL PRIVATE BANK
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
-------- -------- -------- -------- -------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 274 $ 300 $ 304 $ 331 $ 362 32%
Adjusted Operating Expenses 175 181 185 210 211 21%
Provision for Loan Losses 8 2 2 -- 22 175%
-------- -------- -------- -------- --------
Core Income Before Taxes 91 117 117 121 129 42%
Income Taxes 34 44 44 45 47 38%
-------- -------- -------- -------- --------
Core Income $ 57 $ 73 $ 73 $ 76 $ 82 44%
======== ======== ======== ======== ========
Average Assets (in billions of dollars) $ 18 $ 19 $ 21 $ 23 $ 23 28%
======== ======== ======== ======== ========
Return on Assets 1.28% 1.54% 1.38% 1.31% 1.43%
======== ======== ======== ======== ========
Client Business Volumes (in billions of dollars) $ 119 $ 125 $ 128 $ 140 $ 144 21%
======== ======== ======== ======== ========
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS):
Proprietary Managed Assets $ 28 $ 28 $ 28 $ 30 $ 31 11%
Other Assets under Fee based Management 2 2 2 3 3 50%
Banking and Fiduciary Deposits 27 27 27 27 28 4%
Loans 17 18 21 22 23 35%
Other, Principally Custody Accounts 45 50 50 58 59 31%
-------- -------- -------- -------- --------
Total Client Business Volumes $ 119 $ 125 $ 128 $ 140 $ 144 21%
======== ======== ======== ======== ========
REVENUES:
Customer Revenues
Net Interest Spread and Recurring
Fee Based Revenues $ 201 $ 199 $ 206 $ 223 $ 231 15%
Transaction Revenues 35 57 61 69 82 134%
-------- -------- -------- -------- --------
Total Customer Revenues 236 256 267 292 313 33%
Other Revenues(Principally Allocated Equity
and Treasury Revenues) 38 44 37 39 49 29%
-------- -------- -------- -------- --------
Total Revenues $ 274 $ 300 $ 304 $ 331 $ 362 32%
======== ======== ======== ======== ========
United States $ 101 $ 109 $ 107 $ 112 $ 120 19%
International 173 191 197 219 242 40%
Net Credit Loss Ratio 0.18% 0.05% 0.05% 0.13% 0.18%
Loans 90+ Days Past Due:
In Millions of Dollars $ 191 $ 162 $ 145 $ 120 $ 87 (54%)
Delinquency Ratio (% of Avg Loans) 1.10% 0.88% 0.69% 0.54% 0.37%
</TABLE>
Page 21
<PAGE>
INVESTMENT ACTIVITIES
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
-------- -------- -------- -------- -------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Proprietary Investments (1) $ 103 $ 219 $ 289 $ 191 $ 1,362
LDC Debt Sales/Refinancing 20 18 19 21 (112)
Insurance Portfolio Gains (Losses) (2) 30 33 3 144 (235)
-------- -------- -------- -------- --------
Total Revenues $ 153 $ 270 $ 311 $ 356 $ 1,015 563%
======== ======== ======== ======== ========
CORE INCOME:
Proprietary Investments (1) $ 59 $ 133 $ 179 $ 115 $ 850
LDC Debt Sales/Refinancing 13 11 11 12 (69)
Insurance Portfolio Gains (Losses) (2) 18 19 4 86 (147)
-------- -------- -------- -------- --------
Total Core Income $ 90 $ 163 $ 194 $ 213 $ 634 604%
======== ======== ======== ======== ========
PERIOD END ASSETS:
Proprietary Investments $ 5,200 $ 5,429 $ 6,194 $ 7,081 $ 7,796 50%
LDC Debt Sales/Refinancing 3,377 3,358 3,304 3,371 3,285 (3%)
-------- -------- -------- -------- --------
Total Period End Assets $ 8,577 $ 8,787 $ 9,498 $ 10,452 $ 11,081 29%
======== ======== ======== ======== ========
</TABLE>
(1) Includes Venture Capital Activities and certain other corporate
investments.
(2) Represents gains (losses) on investments held by insurance companies (see
page 28 for Insurance Investment Portfolio details).
Page 22
<PAGE>
CITIGROUP CONSOLIDATED STATEMENT OF INCOME
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
-------- -------- -------- -------- -------- -----------------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
Loan interest, including fees $ 5,888 $ 5,614 $ 5,784 $ 5,886 $ 6,024 2%
Other interest and dividends 5,414 5,449 5,417 5,448 5,878 9%
Insurance premiums 2,526 2,616 2,636 2,663 2,717 8%
Commissions and fees 2,872 3,153 3,149 3,549 3,998 39%
Principal transactions 1,770 1,272 954 1,164 1,723 (3%)
Asset management and administration fees 955 1,003 1,056 1,150 1,284 34%
Realized gains (losses) from sales of investments 53 188 35 281 (169) NM
Other income 1,043 1,141 1,066 810 2,253 116%
-------- -------- -------- -------- --------
Total revenues 20,521 20,436 20,097 20,951 23,708 16%
Interest expense 6,451 6,056 6,076 6,185 6,724 4%
-------- -------- -------- -------- --------
Total revenues, net of interest expense 14,070 14,380 14,021 14,766 16,984 21%
-------- -------- -------- -------- --------
PROVISIONS FOR BENEFITS, CLAIMS, AND CREDIT LOSSES
Policyholder benefits and claims 2,048 2,151 2,258 2,214 2,251 10%
Provision for credit losses 729 790 632 686 751 3%
-------- -------- -------- -------- --------
Total provisions for benefits, claims, and
credit losses 2,777 2,941 2,890 2,900 3,002 8%
-------- -------- -------- -------- --------
OPERATING EXPENSES
Non-insurance compensation and benefits 3,755 3,615 3,531 3,635 4,125 10%
Insurance underwriting, acquisition and operating 825 802 770 892 828 --
Restructuring-related items (130) 47 22 (27) 20 NM
Other operating 2,871 3,060 2,938 3,175 3,353 17%
-------- -------- -------- -------- --------
Total operating expenses 7,321 7,524 7,261 7,675 8,326 14%
-------- -------- -------- -------- --------
INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGES 3,972 3,915 3,870 4,191 5,656 42%
Provision for income taxes 1,423 1,402 1,379 1,499 2,011 41%
Minority interest, net of income taxes 60 65 56 70 55 (8%)
-------- -------- -------- -------- --------
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING
CHANGES 2,489 2,448 2,435 2,622 3,590 44%
Cumulative effect of accounting changes (127) -- -- -- -- NM
-------- -------- -------- -------- --------
NET INCOME $ 2,362 $ 2,448 $ 2,435 $ 2,622 $ 3,590 52%
======== ======== ======== ======== ========
</TABLE>
NM - Not meaningful
Page 23
<PAGE>
CITIGROUP EARNINGS ANALYSIS - MANAGED BASIS
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
-------- -------- -------- -------- -------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 14,070 $ 14,380 $ 14,021 $ 14,766 $ 16,984 21%
Effect of Credit Card Securitization Activity 588 570 552 559 519 (12%)
-------- -------- -------- -------- --------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 14,658 14,950 14,573 15,325 17,503 19%
Total Operating Expenses 7,321 7,524 7,261 7,675 8,326 14%
Restructuring-Related Items (1) 130 (47) (22) 27 (20) NM
-------- -------- -------- --------- --------
ADJUSTED OPERATING EXPENSES 7,451 7,477 7,239 7,702 8,306 11%
OPERATING MARGIN 7,207 7,473 7,334 7,623 9,197 28%
-------- -------- -------- --------- --------
Provisions for Benefits, Claims and Credit Losses 2,777 2,941 2,890 2,900 3,002 8%
Effect of Credit Card Securitization Activity 588 570 552 559 519 (12%)
-------- -------- -------- --------- --------
ADJUSTED PROVISIONS FOR BENEFITS, CLAIMS AND
CREDIT LOSSES 3,365 3,511 3,442 3,459 3,521 5%
CORE INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 3,842 3,962 3,892 4,164 5,676 48%
Taxes on Core Income 1,367 1,420 1,386 1,489 2,019 48%
Minority Interest, Net of Income Taxes 60 65 56 70 55 (8%)
-------- -------- -------- --------- --------
CORE INCOME 2,415 2,477 2,450 2,605 3,602 49%
Restructuring-Related Items After-tax (1) 74 (29) (15) 17 (12) NM
Cumulative Effect of Accounting Changes (2) (127) -- -- -- -- NM
-------- -------- -------- -------- --------
NET INCOME $ 2,362 $ 2,448 $ 2,435 $ 2,622 $ 3,590 52%
======== ======== ======== ========= ========
</TABLE>
(1) Includes restructuring charge of $49 million pretax ($31 million after-tax)
related to severance in the 1999 third quarter; a charge of $82 million
pretax ($51 million after-tax) in the 1999 fourth quarter; and credits for
reversals of prior charges of $211 million pretax ($125 million after-tax)
in the 1999 first quarter, $68 million pretax ($41 million after-tax) in
the 1999 third quarter, and $122 million pretax ($76 million after-tax) in
the 1999 fourth quarter. The 2000 first quarter and the 1999 fourth, third,
second and first quarters also included $20 million pretax ($12 million
after-tax), $13 million pretax ($8 million after-tax), $41 million pretax
($25 million after-tax), $47 million pretax ($29 million after-tax), and
$81 million pretax ($51 million after-tax), respectively, of accelerated
depreciation.
(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.
NM - Not meaningful
Page 24
<PAGE>
CONSUMER LOAN DELINQUENCY AMOUNTS, NET CREDIT LOSSES AND RATIOS (In millions of
dollars, except loan amounts in billions)
<TABLE>
<CAPTION>
EOP AVERAGE
LOANS 90 DAYS OR MORE PAST DUE (1) LOANS NET CREDIT LOSSES (1)
--------- ------------------------------ ------- -----------------------------
1Q 2000 1Q 2000 4Q 1999 1Q 1999 1Q 2000 1Q 2000 4Q 1999 1Q 1999
--------- -------- ------- ------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CITIBANKING NORTH AMERICA $ 7.2 $ 48 $ 55 $ 103 $ 7.3 $ 17 $ 23 $ 24
Ratio 0.66% 0.75% 1.34% 0.96% 1.23% 1.27%
MORTGAGE BANKING 31.5 719 696 610 30.9 11 11 13
Ratio 2.29% 2.31% 2.29% 0.14% 0.15% 0.20%
U.S. BANKCARDS 73.0 1,058 1,061 1,007 72.3 782 783 784
Ratio 1.45% 1.44% 1.46% 4.35% 4.43% 4.72%
OTHER CARDS 2.4 29 30 35 2.0 16 21 20
Ratio 1.23% 1.38% 1.45% 2.98% 3.87% 3.50%
CITIFINANCIAL 16.2 216 203 183 15.9 76 83 71
Ratio 1.33% 1.31% 1.42% 1.92% 2.19% 2.38%
EUROPE, MIDDLE EAST AND AFRICA 16.6 875 914 893 16.8 71 67 75
Ratio 5.26% 5.33% 5.40% 1.70% 1.56% 1.81%
ASIA PACIFIC 25.6 443 453 513 25.1 74 71 78
Ratio 1.73% 1.80% 2.31% 1.19% 1.15% 1.43%
LATIN AMERICA 7.3 333 320 292 7.6 90 94 91
Ratio 4.58% 4.10% 3.75% 4.77% 4.71% 4.74%
GLOBAL PRIVATE BANK 23.4 87 120 191 22.4 10 7 8
Ratio 0.37% 0.54% 1.10% 0.18% 0.13% 0.18%
OTHER 1.0 2 3 2 0.8 3 2 1
-------- ------- ------- ------- ------ ------- ------- -------
TOTAL MANAGED 204.2 3,810 3,855 3,829 201.1 1,150 1,162 1,165
Ratio 1.87% 1.91% 2.09% 2.30% 2.36% 2.61%
SECURITIZATION ACTIVITIES:
SECURITIZED CREDIT CARD RECEIVABLES (48.0) (702) (725) (688) (48.2) (499) (537) (556)
LOANS HELD FOR SALE (4.2) (31) (32) (39) (4.3) (20) (22) (32)
-------- ------- ------- ------- ------ ------- ------- -------
(52.2) (733) (757) (727) (52.5) (519) (559) (588)
TOTAL LOANS $ 152.0 $3,077 $ 3,098 $ 3,102 $148.6 $ 631 $ 603 $ 577
======== ======= ======= ======= ====== ======= ======= =======
Ratio 2.02% 2.08% 2.37% 1.71% 1.68% 1.78%
</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.
Page 25
<PAGE>
DETAILS OF CREDIT LOSS EXPERIENCE
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q
1999 1999 1999 1999 2000
------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
ALLOWANCE FOR CREDIT LOSSES AT BEGINNING OF PERIOD $6,617 $6,662 $6,743 $6,706 $6,679
------- ------ ------ ------ ------
PROVISION FOR CREDIT LOSSES
Consumer 618 680 595 596 630
Commercial 111 110 37 90 121
GROSS CREDIT LOSSES
Consumer 695 772 744 739 778
Commercial 131 134 103 156 140
------- ------ ------ ------ ------
826 906 847 895 918
------- ------ ------ ------ ------
CREDIT RECOVERIES
Consumer 118 140 145 136 147
Commercial 20 24 16 57 19
------- ------ ------ ------ ------
138 164 161 193 166
------- ------ ------ ------ ------
NET CREDIT LOSSES 688 742 686 702 752
------- ------ ------ ------ ------
Other--net 4 33 17 (11) (21)
------- ------ ------ ------ ------
ALLOWANCE FOR CREDIT LOSSES AT END OF PERIOD $6,662 $6,743 $6,706 $6,679 $6,657
====== ====== ====== ====== ======
Net consumer credit losses $ 577 $ 632 $ 599 $ 603 $ 631
As a percentage of average consumer loans 1.78% 1.89% 1.73% 1.68% 1.71%
Net commercial credit losses $ 111 $ 110 $ 87 $ 99 $ 121
As a percentage of average commercial loans 0.46% 0.48% 0.37% 0.42% 0.51%
ALLOWANCE FOR CREDIT LOSSES
Consumer $3,355 $3,436 $3,449 $3,435 $3,413
Commercial 3,307 3,307 3,257 3,244 3,244
------- ------ ------ ------ ------
Total Allowance for Credit Losses $6,662 $6,743 $6,706 $6,679 $6,657
====== ====== ====== ====== ======
ALLOWANCE AS A PERCENT OF TOTAL LOANS
Consumer 2.56% 2.55% 2.47% 2.31% 2.25%
Commercial 3.46% 3.38% 3.34% 3.40% 3.21%
Total 2.94% 2.90% 2.83% 2.73% 2.63%
</TABLE>
Page 26
<PAGE>
CITIGROUP SUPPLEMENTAL DATA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q
1999 1999 1999 1999 2000
---- ---- ---- ---- ----
<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) $ 358 $ 214 $ 277 $ 241 $ 237
Other 1,277 1,341 1,232 1,162 1,218
------- ------- ------- ------- -------
Total Commercial Cash-Basis Loans $ 1,635 $ 1,555 $ 1,509 $ 1,403 $ 1,455
======= ======= ======= ======= =======
COMMERCIAL CASH-BASIS LOANS
Emerging Markets $ 1,095 $ 1,197 $ 1,154 $ 1,044 $ 1,066
Global Relationship Banking 308 279 302 304 319
Insurance Subsidiaries 218 66 40 41 59
Investment Activities 14 13 13 14 11
------- ------- ------- ------- -------
Total Commercial Cash-Basis Loans $ 1,635 $ 1,555 $ 1,509 $ 1,403 $ 1,455
======= ======= ======= ======= =======
COMMERCIAL RENEGOTIATED LOANS $ 47 $ 50 $ 68 $ 59 $ 46
======= ======= ======= ======= =======
CONSUMER LOANS ON WHICH ACCRUAL OF INTEREST
HAS BEEN SUSPENDED $ 2,252 $ 2,259 $ 2,214 $ 2,230 $ 2,217
======= ======= ======= ======= =======
OTHER REAL ESTATE OWNED
- -----------------------
Consumer (2) $ 217 $ 213 $ 211 $ 204 $ 189
------- ------- ------- ------- -------
Emerging Markets 26 28 50 44 43
Global Relationship Banking 212 178 178 156 141
Insurance Subsidiaries 217 420 420 286 285
------- ------- ------- ------- -------
Total Commercial (2) 455 626 648 486 469
------- ------- ------- ------- -------
Corporate/Other 8 8 8 14 9
------- ------- ------- ------- -------
Total $ 680 $ 847 $ 867 $ 704 $ 667
======= ======= ======= ======= =======
ASSETS PENDING DISPOSITION (3) $ 95 $ 89 $ 87 $ 86 $ 97
- -------------------------- ======= ======= ======= ======= =======
</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) Represents repossessed real estate, carried at lower of cost or collateral
value.
(3) Represents consumer residential mortgage loans that have a high
probability of foreclosure, carried at lower of cost or collateral value.
Page 27
<PAGE>
MANAGED ASSETS AND INSURANCE INVESTMENTS
(In billions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (DECREASE)
---- ---- ---- ---- ---- -----------------
<S> <C> <C> <C> <C> <C> <C>
SSB Citi Asset Management Group $ 338.2 $ 347.4 $ 351.4 $ 364.4 $ 375.6 11%
SSB - Financial Consultant managed accounts 18.6 20.2 21.4 27.4 31.7 70%
Travelers Life and Annuity 26.6 27.3 27.5 27.4 29.8 12%
--------- --------- --------- --------- ---------
Total assets managed for third parties 383.4 394.9 400.3 419.2 437.1 14%
Consulting Group externally managed assets 73.1 76.8 74.6 83.0 86.7 19%
Other investments held by Insurance companies 39.0 39.3 38.6 37.5 41.3 6%
--------- --------- --------- --------- ---------
Total managed assets and insurance investments $ 495.5 $ 511.0 $ 513.5 $ 539.7 $ 565.1 14%
========= ========= ========= ========= =========
</TABLE>
INSURANCE INVESTMENT PORTFOLIO
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2000 VS.
1Q 2Q 3Q 4Q 1Q 1Q 1999 INCREASE/
1999 1999 1999 1999 2000 (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 $ 9,595 $ 9,294 $ 9,058 $ 9,010 $ 9,382 (2%)
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies 3,728 3,324 2,983 2,778 3,033 (23%)
Corporates (including redeemable preferreds) 27,346 27,504 27,606 26,635 27,317 --
Obligations of states and political subdivisions 11,023 10,672 10,362 9,981 10,049 (10%)
Debt securities issued by foreign governments 1,822 1,842 1,631 1,711 1,579 (15%)
Held to maturity, at amortized cost 28 26 24 33 32 13%
-------- -------- -------- -------- --------
Total fixed income 53,542 52,662 51,664 50,148 51,392 (4%)
Equity securities, at market 1,685 1,819 1,905 2,121 2,111 20%
Short-term and other 6,651 5,301 5,524 5,322 6,478 (3%)
-------- -------- -------- -------- --------
Total investments held by Insurance companies $ 61,878 $ 59,782 $ 59,093 $ 57,591 $ 59,981 (3%)
======== ======== ======== ======== ========
After tax unrealized gains / (losses) on invested assets $ 943 $ 100 $ (251) $ (587) $ (218) NM
======== ======== ======== ======== ========
</TABLE>
NM - Not meaningful
Page 28
<PAGE>
CITICORP SUPPLEMENTAL DATA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q
1999 1999 1999 1999 2000
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
NET INTEREST REVENUE STATISTICS
(TAXABLE EQUIVALENT BASIS)
Net Interest Revenue $3,587 $3,651 $3,660 $3,714 $3,713
Effect of Credit Card Securitization Activity 1,084 1,020 1,043 1,008 1,019
------ ------ ------ ------ ------
Total Adjusted $4,671 $4,671 $4,703 $4,722 $4,732
====== ====== ====== ====== ======
Average Interest Earning Assets (in billions of dollars) $300.8 $304.4 $307.9 $313.4 $324.6
Effect of Credit Card Securitization Activity 44.3 46.7 47.9 48.6 48.2
------ ------ ------ ------ ------
Total Adjusted $345.1 $351.1 $355.8 $362.0 $372.8
====== ====== ====== ====== ======
Net Interest Margin (%) 4.84% 4.81% 4.72% 4.70% 4.60%
Effect of Credit Card Securitization Activity 0.65% 0.53% 0.52% 0.47% 0.51%
------ ------ ------ ------ ------
Total Adjusted 5.49% 5.34% 5.24% 5.17% 5.11%
====== ====== ====== ====== ======
TRADING RELATED REVENUES
BY BUSINESS SECTOR:
Global Corporate:
Emerging Markets $ 335 $ 253 $ 261 $ 237 $ 257
Global Relationship Banking 414 253 297 299 439
------ ------ ------ ------ ------
Total Global Corporate 749 506 558 536 696
Global Consumer and Other 123 94 127 111 142
------ ------ ------ ------ ------
Total $ 872 $ 600 $ 685 $ 647 $ 838
====== ====== ====== ====== ======
BY TRADING ACTIVITY:
Foreign Exchange $ 456 $ 327 $ 387 $ 347 $ 377
Derivative 282 190 195 205 349
Fixed Income 37 22 44 33 44
Other 97 61 59 62 68
------ ------ ------ ------ ------
Total $ 872 $ 600 $ 685 $ 647 $ 838
====== ====== ====== ====== ======
BY INCOME STATEMENT LINE:
Foreign Exchange $ 488 $ 368 $ 358 $ 355 $ 422
Trading Account 304 138 252 194 369
Other 80 94 75 98 47
------ ------ ------ ------ ------
Total $ 872 $ 600 $ 685 $ 647 $ 838
====== ====== ====== ====== ======
</TABLE>
Page 29
<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 18, 2000 CITIGROUP INC.
By:
------------------------------------
Name: Roger W. Trupin
Title: Controller
