<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) February 16, 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.
Attached hereto as Exhibit 99.01 and incorporated by reference herein is the
1998 Financial Supplement of Citigroup Inc.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits
Exhibit Number Description of Exhibit
-------------- ----------------------
99.01 1998 Financial Supplement
<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: February 16, 2000
CITIGROUP INC.
By: /s/ Roger W. Trupin
-------------------------
Name: Roger W. Trupin
Title: Controller
<PAGE>
Exhibit 99.01
[LOGO]
1998
FINANCIAL
SUPPLEMENT
<PAGE>
T A B L E O F C O N T E N T S
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CITIGROUP
<S> <C>
Citigroup Financial Highlights Page 3
Citigroup Basic Core Earnings Per Share Page 4
Citigroup Diluted Core Earnings Per Share Page 5
Citigroup Parent Company Only information Page 6
GLOBAL CONSUMER
Banking / Lending
Citibanking North America Page 7
Mortgage Banking Page 8
Cards Page 9
CitiFinancial Page 10
Insurance
Travelers Life & Annuity Page 12
Primerica Page 17
Personal Lines Page 19
International
Europe, Middle East, Africa Page 20
Asia Pacific Page 21
Latin America Page 22
e-Citi and Other Consumer Page 23
ADDENDUM
Worldwide Cards Page 24
Citicorp Only information Page 25
ENDNOTES Page 26
</TABLE>
- --------------------------------------------------------------------------------
Note: Global Corporate & Investment Bank and Global Investment Management &
Private Banking segment results to be provided at a later date.
During 1999, Global Private Bank became a part of the Global
Investment Management & Private Banking segment, and is no longer
reported as part of the Global Consumer segment.
Page 2 of 26
<PAGE>
C I T I G R O U P
($ IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS 1998 1997 1996 1995 1994 1993 1992
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Adjusted Revenues $ 51,123 $ 49,495 $ 45,157 $ 37,484 $ 32,775 $ 27,500 $ 25,896
Core Income $ 6,342 $ 7,751 $ 6,981 $ 5,650 $ 3,733 $ 3,783 $ 2,042
Basic Core Earnings per Share (1) $ 1.82 $ 2.22 $ 1.96 $ 1.62 $ 1.02 $ 1.25 $ 0.67
Diluted Core Earnings per Share (1) $ 1.77 $ 2.12 $ 1.87 $ 1.47 $ 0.95 $ 1.09 $ 0.65
Assets $ 668,641 $ 697,384 $ 626,906 $ 559,146 $ 537,540 $ 502,657 $ 397,271
Equity Capital (2) $ 44,548 $ 43,131 $ 39,836 $ 35,743 $ 30,645 $ 28,200 $ 19,701
Common Equity $ 40,395 $ 38,498 $ 35,213 $ 31,000 $ 24,646 $ 22,501 $ 15,377
Return on Common Equity (3) 14.9% 20.2% 21.1% 20.2% 16.0% 21.7% 13.8%
Book Value per Share (1) $ 11.91 $ 11.26 $ 10.21 $ 9.41 $ 7.76 $ 7.03 $ 5.80
Common Shares Outstanding (millions) (1) 3,387.0 3,419.9 3,448.7 3,295.7 3,174.6 3,202.5 2,652.5
Year-end Stock Price (1) (4) $ 33.13 $ 35.92 $ 20.17 $ 13.92 $ 7.19 $ 8.64 $ 5.37
Market Capitalization (5) $ 112,194 $ 119,093 $ 82,226 $ 52,306 $ 28,526 $ 29,400 $ 15,022
Employees 173,700 161,700 155,100 141,400 148,300 123,700 104,100
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
FINANCIAL HIGHLIGHTS 1991 1990 1989 1988 1987 1986
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Adjusted Revenues $ 25,174 $ 23,380 $ 21,558 $ 16,326 $ 15,096 $ 13,342
Core Income $ 751 $ 1,347 $ 1,343 $ 2,204 $ (1,039) $ 1,587
Basic Core Earnings per Share (1) $ 0.20 $ 0.46 $ 0.48 $ 1.07 $ (0.60) $ 1.22
Diluted Core Earnings per Share (1) $ 0.22 $ 0.44 $ 0.47 $ 1.02 $ (0.59) $ 1.19
Assets $ 335,869 $ 346,518 $ 366,822 $ 311,451 $ 286,781 $ 283,074
Equity Capital (2) $ 16,746 $ 16,078 $ 16,218 $ 15,247 $ 12,690 $ 13,265
Common Equity $ 13,846 $ 13,844 $ 13,678 $ 12,957 $ 10,400 $ 11,900
Return on Common Equity (3) 5.2% 9.6% 9.8% 19.7% -9.6% 14.1%
Book Value per Share (1) $ 5.40 $ 5.50 $ 5.44 $ 5.44 $ 5.24 $ 8.70
Common Shares Outstanding (millions) (1) 2,563.8 2,515.9 2,516.2 2,381.8 1,985.1 1,367.2
Year-end Stock Price (1) (4) $ 4.37 $ 2.54 $ 3.17 $ 2.42 $ 2.49 $ 2.28
Market Capitalization (5) $ 9,126 $ 7,434 $ 13,489 $ 11,124 $ 7,877 $ 5,588
Employees 112,800 121,300 118,600 100,800 101,600 100,500
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 3 of 26
<PAGE>
C I T I G R O U P
($ IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
BASIC CORE EARNINGS PER SHARE 1998 1997 1996 1995 1994 1993 1992 1991
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Core Income $ 6,342 $ 7,751 $ 6,981 $ 5,650 $ 3,733 $ 3,783 $ 2,042 $ 751
Preferred Dividends (216) (279) (319) (491) (501) (396) (290) (246)
-------------------------------------------------------------------------------------
Core Income Available to Common Stockholders $ 6,126 $ 7,472 $ 6,662 $ 5,159 $ 3,232 $ 3,387 $ 1,752 $ 505
- ------------------------------------------------------------------------------------------------------------------------------------
Weighted Average Common Shares Outstanding 3,363.6 3,371.9 3,407.4 3,192.3 3,157.8 2,719.4 2,600.3 2,523.1
- ------------------------------------------------------------------------------------------------------------------------------------
Basic Core Earnings per Share $ 1.82 $ 2.22 $ 1.96 $ 1.62 $ 1.02 $ 1.25 $ 0.67 $ 0.20
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
BASIC CORE EARNINGS PER SHARE 1990 1989 1988 1987 1986
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Core Income $ 1,347 $ 1,343 $ 2,204 ($1,039) $ 1,587
Preferred Dividends (202) (188) (168) (108) (75)
----------------------------------------------------
Core Income Available to Common Stockholders $ 1,145 $ 1,155 $ 2,036 ($1,147) $ 1,512
- ------------------------------------------------------------------------------------------------------
Weighted Average Common Shares Outstanding 2,508.9 2,404.0 1,904.0 1,899.2 1,236.8
- ------------------------------------------------------------------------------------------------------
Basic Core Earnings per Share $ 0.46 $ 0.48 $ 1.07 ($ 0.60) $ 1.22
- ------------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 4 of 26
<PAGE>
C I T I G R O U P
($ IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
DILUTED CORE EARNINGS PER SHARE 1998 1997 1996 1995 1994 1993
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Core Income $ 6,342 $ 7,751 $ 6,981 $ 5,650 $ 3,733 $ 3,783
Preferred Dividends (216) (279) (319) (491) (501) (396)
Effect of Dilutive Securities 24 36 56 259 235 275
- -----------------------------------------------------------------------------------------------------------------------------
Core Income Available to Common Stockholders $ 6,150 $ 7,508 $ 6,718 $ 5,418 $ 3,467 $ 3,662
- -----------------------------------------------------------------------------------------------------------------------------
Weighted Average Common Shares Outstanding 3,363.6 3,371.9 3,407.4 3,192.3 3,157.8 2,719.4
Convertible Securities 17.7 37.8 67.4 395.8 438.8 546.8
Options 60.3 78.6 78.9 72.7 53.4 66.1
Warrants 3.4 10.5 7.5 2.4 0.0 0.0
Restricted Stock 27.8 37.8 29.7 26.6 15.8 18.8
------- ------- ------- ------- ------- -------
Total Adjusted Weighted Average
Common Shares Outstanding 3,472.8 3,536.6 3,590.9 3,689.8 3,665.8 3,351.1
- -----------------------------------------------------------------------------------------------------------------------------
Diluted Core Earnings per Share $ 1.77 $ 2.12 $ 1.87 $ 1.47 $ 0.95 $ 1.09
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
DILUTED CORE EARNINGS PER SHARE 1992 1991 1990 1989 1988 1987 1986
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Core Income $ 2,042 $ 751 $ 1,347 $ 1,343 $ 2,204 ($ 1,039) $ 1,587
Preferred Dividends (290) (246) (202) (188) (168) (108) (75)
Effect of Dilutive Securities 70 77 10 7 5 4 4
- ---------------------------------------------------------------------------------------------------------------------------------
Core Income Available to Common Stockholders $ 1,822 $ 582 $ 1,155 $ 1,162 $ 2,041 ($ 1,143) $ 1,516
- ---------------------------------------------------------------------------------------------------------------------------------
Weighted Average Common Shares Outstanding 2,600.3 2,523.1 2,508.9 2,404.0 1,904.0 1,899.2 1,236.8
Convertible Securities 71.1 107.1 57.2 34.8 29.6 14.7 17.3
Options 106.5 26.1 53.2 55.5 58.9 12.6 15.7
Warrants 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Restricted Stock 17.7 15.6 4.1 0.0 0.0 0.0 0.0
-------- ------- ------- ------- ------- ------- -------
Total Adjusted Weighted Average
Common Shares Outstanding 2,795.6 2,671.9 2,623.4 2,494.3 1,992.5 1,926.5 1,269.8
- ---------------------------------------------------------------------------------------------------------------------------------
Diluted Core Earnings per Share $ 0.65 $ 0.22 $ 0.44 $ 0.47 $ 1.02 ($ 0.59) $ 1.19
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 5 of 26
<PAGE>
C I T I G R O U P
<TABLE>
<CAPTION>
($ IN MILLIONS, EXCEPT PER SHARE AMOUNTS) 1998 1997 1996 1995 1994 1993
- --------------------------------------------------------------------------------------------------------------------------------
CAPITALIZATION (PARENT COMPANY ONLY)
<S> <C> <C> <C> <C> <C> <C>
Average cost of funds:
Short-term 5.39% 5.51% 5.39% 5.95% 4.32% 3.17%
Long-term 7.30% 7.40% 7.46% 7.76% 8.10% 8.05%
Total 7.03% 7.35% 7.24% 7.63% 7.23% 7.40%
- --------------------------------------------------------------------------------------------------------------------------------
Consolidated pre-tax core earnings/
interest expense and preferred dividends 18.06x 20.32x 16.96x 10.14x 6.76x 9.59x
- --------------------------------------------------------------------------------------------------------------------------------
Consolidated pre-tax core earnings $ 9,713 $ 12,143 $ 11,063 $ 8,948 $ 5,949 $ 6,365
Parent interest expense 123 93 151 129 120 77
Parent preferred dividends(6) 216 283 325 498 506 387
Parent trust preferred dividends 95 78 11 -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Capitalization:
Short-term debt $ 991 $ -- $ -- $ -- $ 101 $ 329
Long-term debt 2,422 1,678 1,868 1,975 1,280 1,379
-------- -------- -------- -------- -------- --------
Total debt 3,413 1,678 1,868 1,975 1,381 1,708
Preferred securities(7) 4,153 4,633 4,623 4,743 5,999 5,699
Common equity (includes FAS 115) 40,395 38,498 35,213 31,000 24,646 22,501
-------------------------------------------------------------------------
Total capitalization $ 47,961 $ 44,809 $ 41,704 $ 37,718 $ 32,026 $ 29,908
- --------------------------------------------------------------------------------------------------------------------------------
Leverage ratios:
Debt/total capitalization 7.12% 3.74% 4.48% 5.24% 4.31% 5.71%
Debt+preferred securities/total capitalization 15.78% 14.08% 15.56% 17.81% 23.04% 24.77%
- --------------------------------------------------------------------------------------------------------------------------------
Unrealized gain/(loss) on investment securities $ 1,359 $ 1,692 $ 1,145 $ 888 $ (1,041) --
- --------------------------------------------------------------------------------------------------------------------------------
COMMON STOCK DATA
Price1:
High $ 49.000 $ 38.250 $ 21.111 $ 14.195 $ 9.583 $ 11.000
Low $ 19.000 $ 19.448 $ 12.555 $ 7.195 $ 6.750 $ 5.403
Close $ 33.125 $ 35.917 $ 20.167 $ 13.917 $ 7.195 $ 8.639
- --------------------------------------------------------------------------------------------------------------------------------
Repurchases:
Number of shares (in thousands)(1) 94,246 114,809 177,764 127,893 80,721 7,670
Cost $ 3,085 $ 3,447 $ 3,717 $ 1,944 $ 765 $ 74
Cumulative $ 15,040 $ 11,955 $ 8,508 $ 4,791 $ 2,847 $ 2,082
- --------------------------------------------------------------------------------------------------------------------------------
Valuation:
Price/earnings (basic) 18.20x 16.18x 10.29x 8.59x 7.05x 6.91x
Price/earnings (diluted) 18.71x 16.94x 10.78x 9.47x 7.57x 7.93x
Price/book value(8) 2.78x 3.19x 1.98x 1.48x 0.93x 1.23x
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
($ IN MILLIONS, EXCEPT PER SHARE AMOUNTS) 1992 1991 1990 1989
- ------------------------------------------------------------------------------------------------------
CAPITALIZATION (PARENT COMPANY ONLY)
<S> <C> <C> <C> <C>
Average cost of funds:
Short-term 3.94% 6.30% 8.43% 9.51%
Long-term 8.94% 8.66% 8.22% 8.60%
Total 7.95% 7.77% 8.33% 9.12%
- ------------------------------------------------------------------------------------------------------
Consolidated pre-tax core earnings/
interest expense and preferred dividends 7.28x 4.74x 5.68x 6.91x
- ------------------------------------------------------------------------------------------------------
Consolidated pre-tax core earnings $ 3,716 $ 2,179 $ 2,356 $ 2,819
Parent interest expense 79 103 126 139
Parent preferred dividends(6) 287 246 202 188
Parent trust preferred dividends -- -- -- --
- ------------------------------------------------------------------------------------------------------
Capitalization:
Short-term debt $ 71 $ 342 $ 507 $ 783
Long-term debt 518 640 555 609
-------- -------- -------- --------
Total debt 589 982 1,062 1,392
Preferred securities(7) 4,324 2,952 2,240 2,540
Common equity (includes FAS 115) 15,377 13,846 13,844 13,678
-----------------------------------------------
Total capitalization $ 20,290 $ 17,780 $ 17,146 $ 17,610
- ------------------------------------------------------------------------------------------------------
Leverage ratios:
Debt/total capitalization 2.90% 5.52% 6.19% 7.90%
Debt+preferred securities/total capitalization 24.21% 22.13% 19.26% 22.33%
- ------------------------------------------------------------------------------------------------------
Unrealized gain/(loss) on investment securities -- -- -- --
- ------------------------------------------------------------------------------------------------------
COMMON STOCK DATA
Price1:
High 5.542 4.458 4.195 3.333
Low 3.973 2.431 1.875 2.250
Close 5.375 4.375 2.542 3.167
- ------------------------------------------------------------------------------------------------------
Repurchases:
Number of shares (in thousands)(1) 45,417 27,431 66,146 42,156
Cost $ 363 $ 89 $ 355 $ 257
Cumulative $ 2,008 $ 1,645 $ 1,556 $ 1,201
- ------------------------------------------------------------------------------------------------------
Valuation:
Price/earnings (basic) 8.02x 21.88x 5.53x 6.60x
Price/earnings (diluted) 8.27x 19.89x 5.78x 6.74x
Price/book value(8) 0.93x 0.81x 0.46x 0.58x
- -------------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 6 of 26
<PAGE>
G L O B A L C O N S U M E R : B A N K I N G / L E N D I N G
CITIBANKING NORTH AMERICA(9)
<TABLE>
<CAPTION>
($ IN MILLIONS) 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------
KEY PERFORMANCE MEASURES
<S> <C> <C> <C> <C> <C>
Revenue 2,028 1,918 1,659 1,675 1,601
Core Income 108 108 9 77 60
Total Assets, End of Period ($B) 10 11 12 11 12
Return on Average Assets % 1.06% 1.01% 0.09% 1.20% 0.78%
Operating Expense as a % of Revenue 84% 83% 90% 82% 82%
- ----------------------------------------------------------------------------------------------------------------------
Average Customer Deposits ($B) 39.6 37.1 34.9 32.6 32.0
Accounts (in Millions) 6.2 6.0 6.1 5.8 5.6
Average Loans ($B) 8.3 8.4 8.4 8.7 8.8
Loans, End of Period ($B) 8.4 8.8 9.1 9.5 9.3
Net Interest Revenue / Customer Deposits % 3.88% 4.02% 3.87% 4.02% 3.92%
Net Credit Loss Ratio % 1.49% 1.61% 1.72% 1.70% 2.26%
Loans 90+ Days Past Due % 1.04% 1.61% 2.50% 2.81% 3.13%
- ----------------------------------------------------------------------------------------------------------------------
SECURITIES SALES
Variable Annuity Premiums & Deposits:
Proprietary Underwriters 411 319 123 120 116
Third Party Underwriters 350 333 337 456 684
----- ----- ----- ----- -----
Total Variable Annuity Sales $ 761 $ 652 $ 460 $ 576 $ 800
Mutual Fund Sales at NAV:
Proprietary 1,696 884 667 36 56
Third Party 1,900 1,350 1,110 768 940
----- ----- ----- ----- -----
Total Mutual Fund Sales $ 3,596 $ 2,234 $ 1,777 $ 804 $ 996
- ----------------------------------------------------------------------------------------------------------------------
POINTS OF PRESENCE
# of Financial Centers 376 380 382 428 443
ATM-Only Locations 67 63 63 37 26
# of Proprietary ATMs 2,133 2,151 2,041 1,885 1,767
- ----------------------------------------------------------------------------------------------------------------------
INCOME SUMMARY
- ----------------------------------------------------------------------------------------------------------------------
Net Interest Revenue 1,538 1,492 1,351 1,313 1,255
Non-Interest Revenue 490 426 308 362 346
----- ----- ----- ----- -----
Total Revenue 2,028 1,918 1,659 1,675 1,601
- ----------------------------------------------------------------------------------------------------------------------
Provision for Loan Losses 120 132 139 164 183
Operating Expense 1,704 1,601 1,492 1,380 1,316
- ----------------------------------------------------------------------------------------------------------------------
Core Income Before Taxes 204 185 29 132 103
Provision for Income Taxes 96 77 20 55 43
- ----------------------------------------------------------------------------------------------------------------------
Core Income 108 108 9 77 60
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 7 of 26
<PAGE>
G L O B A L C O N S U M E R : B A N K I N G / L E N D I N G
MORTGAGE BANKING(9)
<TABLE>
<CAPTION>
($ IN MILLIONS) 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------------------
KEY PERFORMANCE MEASURES
<S> <C> <C> <C> <C> <C>
Revenue 619 590 535 503 485
Core Income 213 163 110 74 21
Total Assets, End of Period ($B) 27 24 22 21 18
Return on Average Assets % 0.84% 0.69% 0.50% 0.37% 0.11%
Operating Expense as a % of Revenue 39% 39% 41% 46% 55%
- ----------------------------------------------------------------------------------------------------------------------------------
Mortgage Loans10 ($B) 14.9 14.4 13.7 12.4 12.1
Student Loans ($B) 8.2 7.3 6.6 5.7 4.6
Consumer Finance ($B) 0.8 0.6 0.5 0.5 0.5
---- ---- ---- ---- ----
Average Loans ($B) 23.9 22.3 20.8 18.6 17.2
Other Serviced Loans ($B) 38.6 26.2 25.2 24.7 19.7
---- ---- ---- ---- ----
Total Serviced ($B) 62.5 48.5 46.0 43.3 36.9
- ----------------------------------------------------------------------------------------------------------------------------------
Volume of Mortgages Originated ($B) 16.4 8.2 5.3 4.8 4.5
Average Mortgage Origination ($M) 200.4 214.5 210.4 188.7 142.9
Volume of Student Loans Originated ($B) 2.0 1.7 1.6 1.7 1.5
Volume of Consumer Finance Loans Originated ($B) 0.6 0.3 0.2 0.1 0.1
- ----------------------------------------------------------------------------------------------------------------------------------
Accounts (in Millions) 2.8 2.5 2.2 2.1 1.9
Average Net Interest Margin % 2.13% 2.10% 2.15% 2.13% 2.47%
Net Credit Loss Ratio % 0.31% 0.51% 0.64% 0.80% 1.19%
Loans 90+ Days Past Due % 2.44% 3.13% 4.32% 5.72% 6.04%
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME SUMMARY
Net Interest Revenue 509 469 447 397 425
Non-Interest Revenue 111 121 88 106 59
---- ---- ---- ---- ----
Total Revenue 619 590 535 503 485
- ----------------------------------------------------------------------------------------------------------------------------------
Provision for Loan Losses 19 89 134 150 187
Operating Expense 242 233 219 232 268
- ----------------------------------------------------------------------------------------------------------------------------------
Core Income Before Taxes 358 269 181 122 29
Provision for Income Taxes 146 106 71 48 8
- ----------------------------------------------------------------------------------------------------------------------------------
Core Income 213 163 110 74 21
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 8 of 26
<PAGE>
G L O B A L C O N S U M E R : B A N K I N G / L E N D I N G
CARDS: U.S. CARDS, DINERS CLUB AND PRIVATE LABEL(9),(11)
<TABLE>
<CAPTION>
($ IN MILLIONS) 1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------------------------
KEY PERFORMANCE MEASURES
(MANAGED BASIS)
<S> <C> <C> <C> <C> <C>
Revenue 7,220 5,557 5,367 4,946 4,654
Core Income 795 572 759 956 1,083
Total Managed Assets, End of Period ($B) 75 52 50 48 42
Return on Average Managed Assets 1.29% 1.16% 1.63% 2.22% 2.93%
Operating Expenses as % of Loans 4.41% 3.78% 3.79% 4.02% 4.47%
Risk-Adjusted Margin % 6.61% 5.84% 6.87% 8.03% 8.99%
- -------------------------------------------------------------------------------------------------------------------------------
Loans on Balance Sheet ($B) 24.2 22.3 24.4 21.3 19.5
Loans Securitized or Held for Sale ($B) 47.2 28.8 25.2 25.5 21.3
Total Managed Loans ($B) 71.4 51.1 49.6 46.8 40.8
- -------------------------------------------------------------------------------------------------------------------------------
INCOME SUMMARY
(MANAGED BASIS)
Net Interest Revenue(12) 5,458 4,276 4,171 3,662 3,365
Non-Interest Revenue 1,761 1,281 1,196 1,284 1,289
----- ----- ----- ----- -----
Total Revenue 7,220 5,557 5,367 4,946 4,654
- -------------------------------------------------------------------------------------------------------------------------------
Provision for Loan Losses 1,064 1,096 1,015 775 590
Effect of Securitization Activity 2,187 1,713 1,392 917 933
----- ----- ----- ----- -----
Total Credit Costs 3,251 2,809 2,407 1,692 1,523
Operating Expense 2,693 1,837 1,725 1,705 1,620
- -------------------------------------------------------------------------------------------------------------------------------
Core Income Before Taxes 1,276 912 1,235 1,549 1,511
Provision for Income Taxes 481 340 476 593 428
- -------------------------------------------------------------------------------------------------------------------------------
Core Income 795 572 759 956 1,083
- -------------------------------------------------------------------------------------------------------------------------------
U.S. CARDS(11)
Loans on Balance Sheet ($B) 21.9 20.2 22.4 19.4 17.5
Loans Securitized or Held for Sale ($B) 47.2 28.8 25.2 25.5 21.3
----- ----- ----- ----- -----
Total Managed Loans ($B) 69.1 49.0 47.6 44.9 38.9
- -------------------------------------------------------------------------------------------------------------------------------
Loan Characteristics (in whole $):
Average Credit Line 6,375 6,126 5,546 4,925 4,386
Average Balance 1,976 2,284 2,088 1,948 1,836
Accounts (in Millions):
EOP Open 41 26 26 26 23
Cards in Force 69 41 39 39 34
- -------------------------------------------------------------------------------------------------------------------------------
Charge Volume (Total Sales) ($B) 140.6 106.3 98.8 88.1 72.0
Net Charge-Off Rate 5.33% 5.74% 4.95% 3.68% 3.90%
90+ Days Past Due as % of Loans 1.45% 1.77% 1.89% 1.65% 1.62%
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 9 of 26
<PAGE>
G L O B A L C O N S U M E R : B A N K I N G / L E N D I N G
CITIFINANCIAL(9),(13)
(FORMERLY CONSUMER FINANCE SERVICES)
<TABLE>
<CAPTION>
($ IN MILLIONS) 1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------------------------------------------------------
KEY PERFORMANCE MEASURES
<S> <C> <C> <C> <C> <C>
Revenue $ 1,274 $ 1,006 $ 858 $ 827 $ 752
Core Income $ 223 $ 174 $ 162 $ 186 $ 173
- -----------------------------------------------------------------------------------------------------------------------------
Personal Loans $ 4,275 $ 3,831 $ 3,119 $ 2,982 $ 2,818
Real Estate-Secured Loans 6,660 5,107 3,456 2,956 2,843
Sales Finance and Other 991 849 502 463 448
------- ------ ------ ------ ------
Net Receivables Outstanding 11,926 9,787 7,077 6,401 6,110
Accrued Interest Receivable 99 77 47 42 38
Allowance for Credit Losses (370) (288) (213) (170) (160)
------- ------ ------ ------ ------
Net Consumer Finance Receivables $ 11,655 $ 9,576 $ 6,911 $ 6,273 $ 5,987
- -----------------------------------------------------------------------------------------------------------------------------
POINTS OF PRESENCE
Number of Branches 980 1,024 857 848 826
Active Branch Accounts 1,885 1,759 1,307 1,252 1,158
- -----------------------------------------------------------------------------------------------------------------------------
Average Yield 14.88% 15.24% 15.86% 16.17% 15.98%
Average Net Interest Margin 8.44% 8.53% 9.00% 9.18% 8.95%
Operating Expense as % of Net Receivables 4.23% 4.60% 4.34% 4.71% 4.59%
- -----------------------------------------------------------------------------------------------------------------------------
Net Credit Insurance Premiums Written $ 272 $ 206 $ 124 $ 107 $ 113
Net Credit Property & Other Insurance
Premiums Written by Non-Travelers Insurers 14 25 43 52 53
------- ------ ------ ------ ------
Total Credit Insurance Premiums Written $ 286 $ 231 $ 167 $ 159 $ 166
Net Credit Insurance Premiums Earned $ 208 $ 177 $ 155 $ 139 $ 114
- -----------------------------------------------------------------------------------------------------------------------------
Loan Characteristics (in whole $)
Real Estate-Secured Loans
Average Advance (new loans) 48,400 44,700 35,800 26,300 28,400
Average Yield (total outstandings) 11.80% 11.73% 12.13% 12.33% 12.21%
Personal Loans
Average Advance (new loans) 4,650 4,400 4,250 4,200 4,200
Average Yield (total outstandings) 20.21% 20.14% 20.45% 20.65% 20.61%
- -----------------------------------------------------------------------------------------------------------------------------
60+ Days Past Due as a % of Receivables 1.90% 1.85% 1.80% 1.61% 1.52%
Charge-Off Rate 2.74% 2.82% 3.14% 2.52% 2.14%
Reserves as a % of Net Receivables 3.10% 2.94% 3.01% 2.65% 2.63%
- -----------------------------------------------------------------------------------------------------------------------------
$.M.A.R.T. Receivables at Year End $ 2,605 $ 1,888 $ 1,139 $ 897 $ 783
$.A.F.E. Receivables at Year End 345 368 377 354 319
------- ------ ------ ------ ------
Total $.A.F.E./$.M.A.R.T. Receivables $ 2,950 $ 2,256 $ 1,516 $ 1,251 $ 1,102
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 10 of 26
<PAGE>
G L O B A L C O N S U M E R : B A N K I N G / L E N D I N G
CITIFINANCIAL(9),(13)
(FORMERLY CONSUMER FINANCE SERVICES)
<TABLE>
<CAPTION>
($ IN MILLIONS) 1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------------------------------------------
INCOME SUMMARY
<S> <C> <C> <C> <C> <C>
Finance-related Interest and Other Charges $ 1,581 $ 1,263 $ 1,062 $ 1,026 $ 939
Interest Expense (637) (519) (426) (413) (384)
Insurance Premiums 208 176 155 139 114
Interest and Dividends 55 45 41 38 30
Other Income 67 41 26 37 53
------ ------ ------ ------ ----
Revenues 1,274 1,006 858 827 752
Provision for Benefits, Claims
and Credit Losses 418 316 271 217 182
Insurance Underwriting, Acquisition
and Operating Expenses 27 26 27 27 25
Non-Insurance Compensation and Benefits 249 211 164 167 153
Other Operating Expenses 228 185 126 132 121
------ ------ ------ ------ ----
Total Expenses 504 422 340 326 299
Income Before Income Taxes 352 268 247 284 271
Provision for Income Taxes 129 94 85 98 98
------ ------ ------ ------ ----
Core Income $ 223 $ 174 $ 162 $ 186 $ 173
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 11 of 26
<PAGE>
G L O B A L C O N S U M E R : I N S U R A N C E
TRAVELERS LIFE & ANNUITY(14),(15)
<TABLE>
<CAPTION>
KEY PERFORMANCE MEASURES
($ IN MILLIONS) 1998(16) 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenue $ 3,013 $ 2,670 $ 2,322 $ 2,205 $ 1,937
Core Income $ 495 $ 424 $ 360 $ 281 $ 209
Total Assets $ 46,924 $ 39,608 $ 34,315 $ 33,096 $ 28,406
Equity before Unrealized Gains (Losses) $ 4,658 $ 3,735 $ 3,504 $ 3,227 $ 2,651
Return on Equity:
Annuity, Life and Long Term Care Operations 14.8% 14.5% 13.8% 11.1% 8.7%
------ ------ ------ ------ ------
Total Operations 12.2% 11.7% 10.6% 10.0% 8.2%
- -------------------------------------------------------------------------------------------------------------------------------
Pre-tax Contribution by Source:
Deferred and Payout Annuities $ 347 $ 311 $ 267 $ 173 $ 115
Group Annuities 120 100 100 92 71
Life and Long Term Care Insurance 154 143 124 103 87
Other 133 91 60 58 45
------ ------ ------ ------ ------
Total $ 754 $ 645 $ 551 $ 426 $ 318
- -------------------------------------------------------------------------------------------------------------------------------
Net Investment Income $ 1,968 $ 1,835 $ 1,711 $ 1,633 $ 1,421
Average Investment Yield 8.07% 8.17% 7.76% 7.35% 6.93%
Interest Credited to Contractholders $ 876 $ 829 $ 830 $ 967 $ 871
- -------------------------------------------------------------------------------------------------------------------------------
Statutory Capital and Surplus:
The Travelers Insurance Company $ 4,954 $ 4,117 $ 3,442 $ 3,198 $ 2,135
Travelers Life & Annuity operations only $ 3,510 $ 2,485 $ 2,349 $ 2,254 $ 1,354
Surplus to Liabilities Ratio:
The Travelers Insurance Company 20.4% 19.8% 17.4% 15.7% 10.8%
Travelers Life & Annuity operations only 16.5% 13.4% 13.1% 12.1% 8.3%
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 12 of 26
<PAGE>
G L O B A L C O N S U M E R : I N S U R A N C E
TRAVELERS LIFE & ANNUITY(14),(15)
<TABLE>
<CAPTION>
KEY PERFORMANCE MEASURES
($ IN MILLIONS) 1998(16) 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------------------
DEFERRED ANNUITIES
<S> <C> <C> <C> <C> <C>
Number of Annuities Issued (000):
Fixed 18.0 29.9 26.5 37.3 30.6
Variable 169.3 129.4 79.0 51.1 54.7
----- ----- ---- ---- ----
Total 187.3 159.3 105.5 88.4 85.3
- -------------------------------------------------------------------------------------------------------------------------
Number of Annuities in Force (000):
Fixed 399.8 408.9 399.1 406.1 388.7
Variable 529.6 381.0 270.5 204.0 168.8
----- ----- ----- ----- -----
Total 929.4 789.9 669.6 610.1 557.5
- -------------------------------------------------------------------------------------------------------------------------
Net Written Premiums & Deposits:
Fixed $ 908.1 $ 778.9 $ 620.5 $ 692.3 $ 589.8
Variable 2,892.2 1,775.4 1,370.3 956.2 672.3
------- ------- ------- ----- -----
Total $ 3,800.3 $ 2,554.3 $ 1,990.8 $ 1,648.5 $ 1,262.1
- -------------------------------------------------------------------------------------------------------------------------
Policyholder Account Balances & Benefit Reserves:
Fixed $ 7,915.1 $ 7,358.7 $ 7,242.7 $ 7,208.4 $ 6,820.0
Variable 12,951.4 8,704.9 5,975.9 4,131.6 2,675.6
-------- ------- ------- ------- -------
Total $ 20,866.5 $ 16,063.6 $ 13,218.6 $ 11,340.0 $ 9,495.6
- -------------------------------------------------------------------------------------------------------------------------
PAYOUT ANNUITIES
Net Written Premiums & Deposits $ 429.0 $ 309.9 $ 142.0 $ 141.4 $ 122.9
Policyholder Account Balances & Benefit Reserves $ 4,743.6 $ 4,522.2 $ 4,395.5 $ 4,436.2 $ 4,485.9
- -------------------------------------------------------------------------------------------------------------------------
GIC & OTHER
Net Written Premiums & Deposits $ 3,689.6 $ 2,108.7 $ 1,100.3 $ 994.8 $ 751.1
- -------------------------------------------------------------------------------------------------------------------------
GROUP ANNUITIES
Policyholder Account Balances & Benefit Reserves:
Guaranteed Investment Contracts $ 4,170.7 $ 2,367.6 $ 1,495.2 $ 1,947.3 $ 3,028.1
Other Group Annuities 4,929.6 5,051.4 4,967.3 5,645.4 6,070.4
------- ------- ------- ------- -------
Total $ 9,100.3 $ 7,419.0 $ 6,462.5 $ 7,592.7 $ 9,098.5
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 13 of 26
<PAGE>
G L O B A L C O N S U M E R : I N S U R A N C E
TRAVELERS LIFE & ANNUITY(14),(15)
<TABLE>
<CAPTION>
KEY PERFORMANCE MEASURES
($ IN MILLIONS) 1998(16) 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------------------
LIFE AND LONG TERM CARE INSURANCE
<S> <C> <C> <C> <C> <C>
Face Value (in billions) of :
Life Insurance Issued $ 8.9 $ 6.5 $ 6.6 $ 6.2 $ 9.2
Life Insurance in Force
Term $ 32.1 $ 30.1 $ 29.5 $ 28.8 $ 28.1
Permanent (Universal and Whole Life) 23.3 21.5 20.9 20.4 20.3
---- ---- ---- ---- ----
Total $ 55.4 $ 51.6 $ 50.4 $ 49.2 $ 48.4
- -------------------------------------------------------------------------------------------------------------------------
INDIVIDUAL
LIFE INSURANCE
Number of Life Policies Issued (000) 29.2 24.5 26.1 25.7 38.1
Number of Life Policies in Force (000) 518.1 528.3 545.7 563.3 583.1
Average Face Value per Policy Issued (000) $ 305 $ 265 $ 251 $ 239 $ 242
Average Face Value of Policies in Force (000) $ 107 $ 98 $ 92 $ 87 $ 83
- -------------------------------------------------------------------------------------------------------------------------
Net Written Premiums and Deposits:
Direct Periodic Premiums and Deposits $ 321.5 $ 290.4 $ 285.6 $ 278.6 $ 274.9
Single Premium Deposits 85.1 56.4 58.7 21.2 14.8
Reinsurance (66.0) (58.3) (52.9) (50.5) (27.3)
----- ----- ----- ----- -----
Total $ 340.6 $ 288.5 $ 291.4 $ 249.3 $ 262.4
- -------------------------------------------------------------------------------------------------------------------------
Policyholder Account Balances & Benefit Reserves $ 2,436.1 $ 2,283.4 $ 2,179.8 $ 2,080.3 $ 1,987.0
- -------------------------------------------------------------------------------------------------------------------------
INDIVIDUAL LONG
TERM CARE INSURANCE
Number of Policies in Force (000) 122.2 102.1 76.3 53.6 37.6
Net Written Premiums $ 213.0 $ 183.8 $ 127.7 $ 88.2 $ 61.3
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 14 of 26
<PAGE>
G L O B A L C O N S U M E R : I N S U R A N C E
TRAVELERS LIFE & ANNUITY(14),(15)
<TABLE>
<CAPTION>
INCOME SUMMARY 1998(16) 1997 1996 1995 1994
($ IN MILLIONS)
- --------------------------------------------------------------------------------------------------
REVENUES
<S> <C> <C> <C> <C> <C>
Net Investment Income $1,968 $1,835 $1,711 $1,633 $1,421
Insurance Premiums 693 545 350 342 322
Other Income 352 290 261 230 194
--- --- --- --- ---
REVENUES 3,013 2,670 2,322 2,205 1,937
- --------------------------------------------------------------------------------------------------
EXPENSES
Interest Credited to Contractholders 876 829 830 967 871
Other Policyholder Benefits and Claims 974 842 640 566 552
Amortization of Value of Insurance in Force
and Deferred Policy Acquisition Costs 115 96 83 72 50
Renewal Commissions, Premium Taxes,
Licenses and Fees 82 79 76 79 55
Other Operating Expenses 212 179 142 128 135
--- --- --- --- ---
TOTAL EXPENSES 2,259 2,025 1,771 1,812 1,663
- --------------------------------------------------------------------------------------------------
Income Before income taxes 754 645 551 393 274
Income from Transport -- -- -- 32 43
Provision for Income Taxes 259 221 191 144 108
- --------------------------------------------------------------------------------------------------
Core Income $ 495 $ 424 $ 360 $ 281 $ 209
- --------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 15 of 26
<PAGE>
G L O B A L C O N S U M E R : I N S U R A N C E
TRAVELERS LIFE & ANNUITY(14),(15)
<TABLE>
<CAPTION>
($ IN MILLIONS) 12/31/1998(16) 12/31/97 12/31/96 12/31/95 12/31/94
- ---------------------------------------------------------------------------------------------------------
SUMMARY BALANCE SHEET
ASSETS
<S> <C> <C> <C> <C> <C>
Cash and Investments, excluding Policy Loans $27,845 $24,388 $21,206 $22,169 $ 20,134
Separate and Variable Accounts 15,096 11,184 8,956 6,913 5,142
Policy Loans 1,775 1,783 1,813 1,778 391
Value of Insurance in Force and
Deferred Policy Acquisition Costs 986 783 644 537 438
Cost of Acquired Businesses in
Excess of Net Assets 198 198 199 198 199
Investment in Transport -- -- -- -- 295
Other Assets 1,024 1,272 1,497 1,501 1,807
----- ----- ----- ----- -----
$46,924 $39,608 $34,315 $33,096 $ 28,406
- ---------------------------------------------------------------------------------------------------------
LIABILITIES
Contractholder Funds $16,558 $14,763 $13,559 $14,276 $ 13,970
Insurance Policy and Claims Reserves 7,003 6,753 6,450 6,472 6,450
Separate and Variable Accounts 15,087 11,174 8,881 6,880 5,107
Other Liabilities 3,107 2,717 1,715 1,871 901
----- ----- ----- ----- ---
41,755 35,407 30,605 29,499 26,428
- ---------------------------------------------------------------------------------------------------------
Equity Before Unrealized Gains (Losses) 4,658 3,735 3,504 3,227 2,651
Unrealized Gains (Losses) on Investment
Securities, excluding Transport 511 466 206 370 (673)
--- --- --- --- ----
Total Equity 5,169 4,201 3,710 3,597 1,978
- ---------------------------------------------------------------------------------------------------------
$46,924 $39,608 $34,315 $33,096 $28,406
- ---------------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 16 of 26
<PAGE>
G L O B A L C O N S U M E R : I N S U R A N C E
PRIMERICA
<TABLE>
<CAPTION>
($ IN MILLIONS) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------
KEY PERFORMANCE MEASURES
<S> <C> <C> <C> <C> <C>
Revenue $ 1,655 $ 1,523 $ 1,411 $ 1,324 $ 1,280
Pre-tax Profit Margin 32.3% 29.1% 25.1% 22.9% 21.0%
Core Income:
Life Insurance $ 307 $ 272 $ 230 $ 205 $ 178
Other Financial Products $ 93 $ 64 $ 39 $ 27 $ 26
-------- -------- -------- ------- -------
Total Core Income $ 400 $ 335 $ 269 $ 231 $ 203
Total Assets $ 7,203 $ 6,242 $ 5,595 $ 4,816 $ 4,245
Equity before Unrealized Gains (Losses) $ 3,025 $ 2,452 $ 2,258 $ 2,101 $ 1,954
Return on Equity 15.3% 14.3% 12.3% 11.4% 11.0%
- --------------------------------------------------------------------------------------------------------------------------------
LIFE INSURANCE
Face Value (in billions) of:
Life Insurance Issued $ 57.4 $ 52.6 $ 52.0 $ 53.0 $ 57.4
Life Insurance in Force $ 383.7 $ 369.9 $ 359.9 $ 348.2 $ 335.0
Statutory Capital and Surplus $ 1,421 $ 1,116 $ 854 $ 690 $ 585
- ------------------------------------------------------------------------------------------------------------------------------
Term Life Insurance:
Annualized Issued Premiums $ 179.3 $ 176.6 $ 180.7 $ 184.8 $ 196.4
Earned Premiums $ 986.9 $ 967.1 $ 953.9 $ 931.3 $ 869.3
Direct Premiums $1,243.8 $1,213.7 $1,192.7 $1,161.2 $1,097.2
Average Face Value per Policy Issued (000) $ 223 $ 200 $ 185 $ 180 $ 178
Number of Policies Issued (000) 223.6 228.9 247.6 266.6 299.4
Number of Policies in Force (000) 2,151.8 2,146.2 2,141.8 2,115.6 2,075.6
Average Face Value of Policies in Force (000) $ 175 $ 169 $ 165 $ 161 $ 158
Personal Financial Analysts Licensed to Sell Life Insurance 80,725 79,508 86,115 90,052 98,078
- ------------------------------------------------------------------------------------------------------------------------------
OTHER FINANCIAL PRODUCTS
Number of FNA's Submitted 535,017 483,802 107,248 22,350 5,000
Mutual Fund Sales (at Net Asset Value):
Concert Allocation Series $ 902 $ 690 $ 558 $ 30 $ --
Concert Investment Series 555 607 621 612 683
Puerto Rico & Other 5 -- -- -- --
-------- -------- -------- ------- -------
Internally Managed Funds 1,462 1,297 1,179 642 683
Other US funds 984 805 732 656 639
Canadian funds 496 588 416 253 300
-------- -------- -------- ------- -------
$ 2,942 $ 2,690 $ 2,327 $ 1,551 $ 1,622
--------------------------------------------------------------
Cash Advanced on:
$.M.A.R.T Loans $ 1,415 $ 1,241 $ 659 $ 412 $ 513
$.A.F.E. Loans 46 56 67 104 92
-------- -------- -------- ------- -------
$ 1,461 $ 1,297 $ 726 $ 516 $ 605
--------------------------------------------------------------
Variable Annuity Net Written
Premiums & Deposits $ 652.1 $ 346.5 $ 100.5 $ 26.6 $ --
SECURE Net Written Premiums $ 213.4 $ 72.6 $ 18.8 $ 2.1 $ --
Number of SECURE Policies Issued 153,863 95,830 37,591 4,615 853
Personal Financial Analysts Licensed to Sell:
Mutual Funds 26,517 27,464 27,492 26,666 23,318
Consumer Loans 129,310 93,228 85,615 87,507 78,750
Variable Annuities 13,434 12,596 7,492 4,242 --
Auto & Homeowners Insurance 14,083 8,658 5,537 1,690 341
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 17 of 26
<PAGE>
G L O B A L C O N S U M E R : I N S U R A N C E E
PRIMERICA
<TABLE>
<CAPTION>
($ IN MILLIONS) 1998 1997 1996 1995 1994
- -----------------------------------------------------------------------------------------------------------
REVENUES
<S> <C> <C> <C> <C> <C>
Insurance Premiums $1,057 $1,035 $1,030 $1,012 $ 962
Net Investment Income 228 202 176 163 147
Other Income 370 286 204 150 171
--- --- --- --- ---
Total Revenues 1,655 1,523 1,411 1,324 1,280
- -----------------------------------------------------------------------------------------------------------
EXPENSES
Policyholder Benefits and Claims 484 497 528 529 527
Amortization of Value of Insurance in Force
and Deferred Policy Acquisition Costs 195 196 197 200 190
Other Operating Expenses 353 308 266 234 243
--- --- --- --- ---
Total Expenses 1,031 1,000 990 962 960
- -----------------------------------------------------------------------------------------------------------
Income before Income Taxes 624 523 421 362 320
Provision for Income Taxes 224 188 152 131 117
- -----------------------------------------------------------------------------------------------------------
Core Income $ 400 $ 335 $ 269 $ 231 $ 203
- -----------------------------------------------------------------------------------------------------------
December 31,
- -----------------------------------------------------------------------------------------------------------
ASSETS
Cash and Investments $4,199 $3,374 $2,816 $2,555 $ 2,086
Value of Insurance in Force and Deferred Policy
Acquisition Costs 1,577 1,524 1,482 1,416 1,350
Cost of Acquired Businesses in Excess of Net Assets 234 243 251 259 267
Other Assets 1,193 1,102 1,046 586 543
----- ----- ----- --- ---
$7,203 $6,242 $5,595 $4,816 $ 4,245
- -----------------------------------------------------------------------------------------------------------
LIABILITIES
Insurance Policy and Claims Reserves $2,765 $2,648 $2,506 $2,320 $ 2,118
Other Payables and Liabilities 1,312 1,064 795 322 252
----- ----- --- --- ---
4,077 3,712 3,301 2,642 2,370
- -----------------------------------------------------------------------------------------------------------
Equity before Unrealized Gains (Losses) 3,025 2,452 2,258 2,101 1,954
Unrealized Gains (Losses) on Investment Securities 101 78 36 73 (79)
--- -- -- -- ---
Total Equity 3,125 2,531 2,293 2,174 1,875
- -----------------------------------------------------------------------------------------------------------
$7,203 $6,242 $5,595 $4,816 $ 4,245
- -----------------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 18 of 26
<PAGE>
G L O B A L C O N S U M E R : I N S U R A N C E
TRAVELERS PROPERTY CASUALTY(17) - PERSONAL LINES
<TABLE>
<CAPTION>
($ IN MILLIONS) 1998 1997 1996
- ----------------------------------------------------------------------------------------------------------------------------
SELECTED STATISTICS
<S> <C> <C> <C>
Revenue $ 3,666 $ 3,276 $ 2,657
Core Income $ 319 $ 300 $ 191
NET WRITTEN PREMIUMS BY PRODUCT LINE:
Auto $ 2,327.8 $ 1,950.6 $ 1,645.0
Homeowners and Other 1,162.3 1,123.6 713.8
------- ------- -----
Total Net Written Premiums $ 3,490.1 $ 3,074.2 $ 2,358.8
- ----------------------------------------------------------------------------------------------------------------------------
NET WRITTEN PREMIUMS BY DISTRIBUTION CHANNEL:
Independent Agents $ 2,852.6 $ 2,702.9
Affinity Group Marketing 264.2 180.1
SECURE 213.3 72.6
Joint Marketing Arrangements 160.0 118.6
----- -----
Total Net Written Premiums $ 3,490.1 $ 3,074.2
- ----------------------------------------------------------------------------------------------------------------------------
STATUTORY RATIO DEVELOPMENT:
Earned Premiums $ 3,271.4 $ 2,917.1 $ 2,323.2
Losses and Loss Adjustment Expenses 2,181.2 1,852.8 1,595.0
Other Underwriting Expenses 950.4 882.7 680.9
----- ----- -----
Total Deductions 3,131.6 2,735.5 2,275.9
- ----------------------------------------------------------------------------------------------------------------------------
Statutory Underwriting Gain (Loss) $ 139.8 $ 181.6 $ 47.3
- ----------------------------------------------------------------------------------------------------------------------------
STATUTORY COMBINED RATIO:
Loss and Loss Adjustment Expense Ratio 66.7% 63.5% 68.7%
Other Underwriting Expense Ratio 27.2% 28.7% 28.9%
---- ---- ----
Combined Ratio 93.9% 92.2% 97.6%
- ----------------------------------------------------------------------------------------------------------------------------
STATUTORY COMBINED RATIO: (BEFORE NET ACQUISITION-RELATED ADJUSTMENTS IN 1996)
Loss and Loss Adjustment Expense Ratio 66.7% 63.5% 71.2%
Other Underwriting Expense Ratio 27.2% 28.7% 28.9%
---- ---- ----
Combined Ratio 93.9% 92.2% 100.1%
- ----------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Pre-Tax) $ 388.4 $ 353.0 $ 311.3
Effective Tax Rate on Net Investment Income 28.5% 30.4% 30.4%
Catastrophe Losses, Net of Reinsurance (After-Tax) $ 43.5 $ 9.8 $ 58.1
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
($ IN MILLIONS) 1995 1994
- -------------------------------------------------------------------------------------------------------------
SELECTED STATISTICS
<S> <C> <C>
Revenue $ 1,473 $ 1,508
Core Income $ 104 $ 102
NET WRITTEN PREMIUMS BY PRODUCT LINE:
Auto $ 1,007.8 $ 1,186.5
Homeowners and Other 289.8 246.7
----- -----
Total Net Written Premiums $ 1,297.6 $ 1,433.2
- ------------------------------------------------------------------------------------------------------------
NET WRITTEN PREMIUMS BY DISTRIBUTION CHANNEL:
Independent Agents
Affinity Group Marketing
SECURE
Joint Marketing Arrangements
Total Net Written Premiums
- -------------------------------------------------------------------------------------------------------------
STATUTORY RATIO DEVELOPMENT:
Earned Premiums $ 1,283.7 $ 1,374.3
Losses and Loss Adjustment Expenses 956.8 975.8
Other Underwriting Expenses 388.0 427.9
----- -----
Total Deductions 1,344.8 1,403.7
- -------------------------------------------------------------------------------------------------------------
Statutory Underwriting Gain (Loss) $ (61.1) $ (29.4)
- -------------------------------------------------------------------------------------------------------------
STATUTORY COMBINED RATIO:
Loss and Loss Adjustment Expense Ratio 74.5% 71.0%
Other Underwriting Expense Ratio 29.9% 29.4%
---- ----
Combined Ratio 104.4% 100.4%
- -------------------------------------------------------------------------------------------------------------
STATUTORY COMBINED RATIO: (BEFORE NET ACQUISITION-RELATED ADJUSTMENTS IN 1996)
Loss and Loss Adjustment Expense Ratio 74.5% 71.0%
Other Underwriting Expense Ratio 29.9% 29.4%
---- ----
Combined Ratio 104.4% 100.4%
- -------------------------------------------------------------------------------------------------------------
Net Investment Income (Pre-Tax) $ 162.3 $ 130.2
Effective Tax Rate on Net Investment Income 26.9% 25.7%
Catastrophe Losses, Net of Reinsurance (After-Tax) $ 12.2 $ 26.4
- -------------------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 19 of 26
<PAGE>
G L O B A L C O N S U M E R : I N T E R N A T I O N A L
EUROPE, MIDDLE EAST, AFRICA(9)
<TABLE>
<CAPTION>
($ IN MILLIONS) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------
KEY PERFORMANCE MEASURES
<S> <C> <C> <C> <C> <C>
Revenue 2,022 1,935 2,073 1,967 1,703
Core Income 239 211 261 210 210
Total Assets, End of Period ($B) 23 21 22 24 23
Return on Average Assets % 1.11% 0.99% 1.11% 0.85% 0.94%
Operating Expense as a % of Revenue 66% 68% 65% 66% 65%
- -----------------------------------------------------------------------------------------
Cards ($B) 1.6 1.3 1.1 0.9 0.6
Personal Loans ($B) 8.6 8.3 9.0 9.1 7.7
Mortgage Loans ($B) 2.0 2.0 3.7 4.5 4.4
Auto Loans ($B) 1.4 1.2 1.1 1.0 1.0
Other ($B) 2.3 2.3 2.4 2.8 2.7
Average Loans ($B) 15.8 15.1 17.3 18.3 16.3
Loans, End of Period ($B) 17.1 15.1 16.2 18.4 16.8
- -----------------------------------------------------------------------------------------
Average Customer Deposits ($B) 16.7 16.8 18.0 17.5 14.8
Accounts (in Millions) 9.5 8.9 8.6 9.2 8.7
- -----------------------------------------------------------------------------------------
Average Net Interest Margin %(18) 8.19% 8.05% 8.17% 7.99% 8.05%
Net Credit Loss Ratio % 1.71% 1.77% 1.68% 1.72% 1.59%
Loans 90+ Days Past Due % 5.49% 6.00% 5.91% 6.84% 7.23%
- -----------------------------------------------------------------------------------------
POINTS OF PRESENCE
# of Financial Centers 474 486 492 514 503
ATM-Only Locations 67 37 21 8 5
# Proprietary ATMs 883 877 844 741 677
- -----------------------------------------------------------------------------------------
SECURITIES SALES
Mutual Fund Sales at NAV:
Proprietary 3,161 2,097 1,922 650 597
Third Party 276 110 44 17 2
----- ----- ----- ----- -----
Total Mutual Fund Sales 3,437 2,207 1,966 667 598
- -----------------------------------------------------------------------------------------
INCOME SUMMARY
Net Interest Revenue 1,374 1,352 1,466 1,459 1,315
Non-Interest Revenue 648 583 607 509 388
----- ----- ----- ----- -----
Total Revenue 2,022 1,935 2,073 1,967 1,703
- -----------------------------------------------------------------------------------------
Provision for Loan Losses 293 275 303 321 310
Operating Expense 1,339 1,319 1,350 1,306 1,102
- -----------------------------------------------------------------------------------------
Core Income Before Taxes 390 340 419 341 292
Provision for Income Taxes 151 129 158 131 82
- -----------------------------------------------------------------------------------------
Core Income 239 211 261 210 210
- -----------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 20 of 26
<PAGE>
G L O B A L C O N S U M E R : I N T E R N A T I O N A L
ASIA PACIFIC(9)
<TABLE>
<CAPTION>
($ IN MILLIONS) 1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------
KEY PERFORMANCE MEASURES
<S> <C> <C> <C> <C> <C>
Revenue 1,850 1,878 1,920 1,599 1,331
Core Income 382 407 481 402 368
Total Assets, End of Period ($B) 29 26 27 23 20
Return on Average Assets % 1.38% 1.49% 1.93% 1.83% 2.07%
Operating Expense as a % of Revenue 53% 55% 51% 53% 56%
- -------------------------------------------------------------------------------------------
Cards ($B) 3.8 3.9 3.4 2.6 1.9
Mortgage Loans ($B) 12.3 12.2 10.9 9.7 8.4
Auto Loans ($B) 2.1 2.4 2.7 2.6 2.4
Other ($B) 2.0 2.3 2.5 2.8 1.9
Average Loans ($B) 20.2 20.8 19.6 17.7 14.6
Loans, End of Period ($B) 21.8 19.3 20.8 18.7 16.7
- -------------------------------------------------------------------------------------------
Average Customer Deposits ($B) 36.1 30.5 28.2 23.5 19.1
Accounts (in Millions) 7.6 6.3 5.6 4.8 4.1
- -------------------------------------------------------------------------------------------
Average Net Interest Margin %(18) 3.62% 4.18% 4.81% 4.69% 4.75%
Net Credit Loss Ratio % 1.12% 0.82% 0.81% 0.54% 0.49%
Loans 90+ Days Past Due % 2.28% 1.34% 1.23% 0.94% 0.80%
- -------------------------------------------------------------------------------------------
POINTS OF PRESENCE
# of Financial Centers 85 92 101 98 97
ATM-Only Locations 21 20 19 17 17
# Proprietary ATMs 311 293 274 267 254
- -------------------------------------------------------------------------------------------
SECURITIES SALES
Variable Annuity Premiums & Deposits:
Proprietary Underwriters 307 532 744 619 346
Mutual Fund Sales at NAV:
Proprietary 1,007 783 532 355 633
Third Party 713 485 287 134 133
--- --- --- --- ---
Total Mutual Fund Sales 1,721 1,268 820 490 766
- -------------------------------------------------------------------------------------------
INCOME SUMMARY
Net Interest Revenue 1,305 1,275 1,356 1,103 907
Non-Interest Revenue 545 603 564 496 424
--- --- --- --- ---
Total Revenue 1,850 1,878 1,920 1,599 1,331
- -------------------------------------------------------------------------------------------
Provision for Loan Losses 250 198 167 96 79
Operating Expense 975 1,025 977 847 740
- -------------------------------------------------------------------------------------------
Core Income Before Taxes 624 655 775 656 512
Provision for Income Taxes 242 248 294 254 144
- -------------------------------------------------------------------------------------------
Core Income 382 407 481 402 368
- -------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 21 of 26
<PAGE>
GLOBAL CONSUMER: INTERNATIONAL
LATIN AMERICA(9)
<TABLE>
<CAPTION>
($ IN MILLIONS) 1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------
KEY PERFORMANCE MEASURES
<S> <C> <C> <C> <C> <C>
Revenue 1,600 1,475 1,332 1,186 996
Core Income 160 243 249 214 231
Total Assets, End of Period ($B) 15 9 7 6 6
Return on Average Assets % 1.38% 2.91% 3.77% 3.58% 4.43%
Operating Expense as a % of Revenue 67% 62% 59% 54% 56%
- --------------------------------------------------------------------------------------------------
Cards ($B) 1.6 1.3 1.1 0.9 0.9
Mortgage Loans ($B) 1.9 1.7 1.5 1.3 1.0
Auto Loans ($B) 2.1 1.6 1.2 1.1 0.9
Other ($B) 2.3 1.9 1.7 1.5 1.3
Average Loans ($B) 7.8 6.6 5.4 4.8 3.9
Loans, End of Period ($B) 8.0 7.4 5.9 5.0 4.4
- --------------------------------------------------------------------------------------------------
Average Customer Deposits ($B) 10.2 8.2 7.8 6.9 5.4
Accounts (in Millions) 7.3 5.4 4.6 3.3 2.7
- --------------------------------------------------------------------------------------------------
Average Net Interest Margin %(18) 10.86% 11.24% 10.41% 11.16% 12.03%
Net Credit Loss Ratio % 3.07% 2.66% 3.44% 4.28% 2.46%
Loans 90+ Days Past Due % 3.60% 2.34% 2.05% 2.55% 1.70%
- --------------------------------------------------------------------------------------------------
POINTS OF PRESENCE
# of Financial Centers 440 166 155 149 141
ATM-Only Locations 75 49 29 27 11
# Proprietary ATMs 720 375 310 260 222
- --------------------------------------------------------------------------------------------------
SECURITIES SALES
Mutual Fund Sales at NAV:
Proprietary 1,351 1,632 1,126 1,041 1,111
Third Party 4,382 4,985 6,885 3,969 2,170
-------- ------- ------- ------- -------
Total Mutual Fund Sales 5,733 6,617 8,011 5,010 3,281
- --------------------------------------------------------------------------------------------------
INCOME SUMMARY
Net Interest Revenue 1,106 921 815 771 650
Non-Interest Revenue 494 554 517 416 346
-------- ------- ------- ------- -------
Total Revenue 1,600 1,475 1,332 1,186 996
- --------------------------------------------------------------------------------------------------
Provision for Loan Losses 266 192 192 233 148
Operating Expense 1,069 921 788 646 558
- --------------------------------------------------------------------------------------------------
Core Income Before Taxes 265 363 352 307 290
Provision for Income Taxes 105 119 103 92 59
- --------------------------------------------------------------------------------------------------
Core Income 160 243 249 214 231
- --------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 22 of 26
<PAGE>
GLOBAL CONSUMER
E-CITI(9),(19)
<TABLE>
<CAPTION>
( $ IN MILLIONS ) 1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenue 149 114 90 76 31
Operating Expense 378 236 163 89 53
Core Income (141) (78) (49) (52) (16)
- -------------------------------------------------------------------------------------------------------------
<CAPTION>
OTHER(9)
( $ IN MILLIONS ) 1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenue 100 108 90 47 (28)
Operating Expense 227 87 40 28 43
Core Income (77) 15 31 12 (44)
- -------------------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 23 of 26
<PAGE>
GLOBAL CONSUMER
WORLDWIDE CARDS(20)
<TABLE>
<CAPTION>
($ IN MILLIONS) 1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------
KEY PERFORMANCE MEASURES
(MANAGED BASIS)
<S> <C> <C> <C> <C> <C>
Revenue 8,668 7,186 6,912 6,200 5,684
Core Income 952 848 1,046 1,192 1,344
Total Managed Assets ($B) 83 59 57 54 46
Return on Managed Assets 1.37% 1.50% 1.98% 2.48% 3.29%
Total Managed Loans, End of Period ($B) 80 58 57 52 45
Operating Expense as % of Loans 5.16% 4.89% 4.89% 5.05% 5.41%
Risk-Adjusted Margin % 7.51% 7.51% 8.50% 9.44% 10.40%
- -------------------------------------------------------------------------------------------------------
Loans on Balance Sheet ($B) 32.3 29.4 31.3 26.8 23.8
Loans Securitized or Held for Sale ($B) 47.2 28.8 25.2 25.6 21.3
Total Managed Loans ($B) 79.5 58.2 56.5 52.4 45.1
Loan Characteristics (in whole $):
Average Credit Line 5,540 5,034 4,628 4,251 3,595
Average Balance(21) 1,740 1,885 1,757 1,669 1,463
Accounts (in Millions):
EOP Open Accounts 53 37 37 35 33
Cards in Force 85 56 53 51 48
- -------------------------------------------------------------------------------------------------------
Charge Volume (Total Sales) ($B) 176 141 130 116 97
Net Credit Loss Ratio % 5.17% 5.43% 4.83% 3.70% 3.85%
Loans 90+ Days Past Due % 1.60% 1.84% 1.89% 1.67% 1.61%
- -------------------------------------------------------------------------------------------------------
INCOME SUMMARY
(MANAGED BASIS)
Net Interest Revenue(22) 6,325 5,120 4,915 4,264 3,837
Non-Interest Revenue 2,343 2,067 1,997 1,935 1,847
- -------------------------------------------------------------------------------------------------------
Total Revenue 8,668 7,186 6,912 6,200 5,684
- -------------------------------------------------------------------------------------------------------
Provision for Loan Losses 1,423 1,410 1,303 985 736
Effect of Securitization Activity 2,187 1,713 1,392 917 933
- -------------------------------------------------------------------------------------------------------
Total Credit Costs 3,610 3,123 2,695 1,902 1,669
Operating Expense 3,525 2,718 2,538 2,383 2,159
- -------------------------------------------------------------------------------------------------------
Core Income Before Taxes 1,533 1,345 1,679 1,915 1,856
Provision for Income Taxes 582 497 633 723 513
- -------------------------------------------------------------------------------------------------------
Core Income 952 848 1,046 1,192 1,344
- -------------------------------------------------------------------------------------------------------
Cards in Force (Including Affiliates) 96 67 62 59 55
Number of Countries 47 46 39 34 30
- -------------------------------------------------------------------------------------------------------
<CAPTION>
BY REGION EOP Cards in
Accounts Loans Force
As of December 31, 1998 (Millions) % $B % (Millions) %
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
North America (US Bankcards - with Diners
Club, Private Label and Canada Cards) 44 83% 71.8 90% 74 87%
Latin America 2 4% 1.7 2% 3 3%
EMEA 3 5% 1.7 2% 3 4%
Asia Pacific 4 8% 4.3 5% 5 6%
--------------------------------------------------------
Total 53 100% 79.5 100% 85 100%
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
</TABLE>
Refer to page 26 for endnotes.
Page 24 of 26
<PAGE>
CITICORP (ONLY)
<TABLE>
<CAPTION>
($ in millions)
BANKING ACTIVITIES 1998 1997 1996 1995
- -------------------------------------------------------------------------------------------------------------
CAPITALIZATION:
<S> <C> <C> <C> <C>
Net risk-adjusted assets $ 273,514 $ 252,999 $ 236,073 $ 224,915
Tier 1 capital ratio 8.44% 8.27% 8.31% 8.32%
Total capital ratio(23) 12.38% 12.25% 12.15% 12.24%
Leverage(24) 6.68% 6.95% 7.35% 7.38%
Common equity to assets 6.57% 6.15% 6.57% 6.35%
- -------------------------------------------------------------------------------------------------------------
NET INTEREST
REVENUE STATISTICS
Net interest revenue $ 12,266 $ 11,454 $ 10,980 $ 9,984
Effect of credit card securitization activity 3,538 2,369 2,448 2,010
---------------- -------------- -------------- ------------
Total adjusted $ 15,804 $ 13,823 $ 13,428 $ 11,994
Average interest-earning assets ($MM) $ 276,865 $ 251,882 $ 232,042 $ 223,964
Effect of credit card securitization activity 36,300 25,200 26,100 23,600
---------------- -------------- -------------- ------------
Total adjusted $ 313,165 $ 277,082 $ 258,142 $ 247,564
Net interest margin (%) 4.43% 4.55% 4.73% 4.46%
Effect of credit card securitization activity 0.62% 0.44% 0.47% 0.38%
---------------- ---------------------------------------------
Total adjusted 5.05% 4.99% 5.20% 4.84%
- -------------------------------------------------------------------------------------------------------------
BALANCE SHEET
INFORMATION
Deposits $ 225,813 $ 199,121 $ 184,955 $ 167,131
Consumer loans $ 118,970 $ 108,459 $ 112,137 $ 105,897
Commercial loans 88,024 75,554 62,475 59,745
---------------- -------------- -------------- ------------
Total loans $ 206,994 $ 184,013 $ 174,612 $ 165,642
Effect of credit card securitization activity 48,700 30,300 25,200 25,500
---------------- -------------- -------------- ------------
Managed loans $ 255,694 $ 214,313 $ 199,812 $ 191,142
Total Assets $ 343,620 $ 310,897 $ 281,018 $ 256,853
- -------------------------------------------------------------------------------------------------------------
CREDIT DATA
CONSUMER
Net credit loss ratio (adjusted) 2.70% 2.60% 2.37% 2.00%
90+ days past due % loans (adjusted) 2.19% 2.30% 2.61% 3.01%
Cash-basis loans % loans(25) 1.76% 1.70% 1.95% 2.51%
Credit loss allowance % loans 2.45% 2.29% 1.85% 1.84%
- -------------------------------------------------------------------------------------------------------------
COMMERCIAL
Net credit loss ratio 0.50% n/m n/m 0.25%
Cash-basis loans % loans(25) 1.53% 1.41% 1.45% 2.57%
Credit loss allowance % loans 3.76% 4.41% 5.48% 5.73%
- -------------------------------------------------------------------------------------------------------------
TOTAL CITICORP
Allowance for credit losses $ 6,224 $ 5,816 $ 5,503 $ 5,368
Allowance % total loans 3.01% 3.16% 3.15% 3.24%
Other real estate owned & APD(25) $ 592 $ 820 $ 1,226 $ 1,359
Non-performing assets % NPL+OREO(25) 1.95% 2.03% 2.47% 3.35%
- -------------------------------------------------------------------------------------------------------------
<CAPTION>
($ IN MILLIONS)
BANKING ACTIVITIES 1994 1993 1992 1991
- -------------------------------------------------------------------------------------------------------
CAPITALIZATION:
<S> <C> <C> <C> <C>
Net risk-adjusted assets $ 216,856 $202,273 $209,594 *
Tier 1 capital ratio 7.70% 6.51% 4.90% *
Total capital ratio(23) 11.95% 11.33% 9.60% *
Leverage(24) 6.59% 6.04% 4.74% *
Common equity to assets 5.34% 4.54% 3.73% 3.39%
- -------------------------------------------------------------------------------------------------------
NET INTEREST
REVENUE STATISTICS
Net interest revenue $ 8,937 $ 7,705 $ 7,475 $ 7,300
Effect of credit card securitization activity 2,049 2,319 2,077 1,596
----------- ----------- ----------- -----------
Total adjusted $ 10,986 $ 10,024 $ 9,552 $ 8,896
Average interest-earning assets ($MM) $ 213,318 $ 198,616 $ 198,993 $ 196,089
Effect of credit card securitization activity 23,400 24,400 22,207 18,000
----------- ----------- ----------- -----------
Total adjusted $ 236,718 $ 223,016 $ 221,200 $ 214,089
Net interest margin (%) 4.19% 3.88% 3.76% 3.72%
Effect of credit card securitization activity 0.45% 0.62% 0.56% 0.43%
--------------------------------------------------------
Total adjusted 4.64% 4.50% 4.32% 4.15%
- -------------------------------------------------------------------------------------------------------
BALANCE SHEET
INFORMATION
Deposits $ 155,726 $ 145,089 $ 144,175 $ 146,475
Consumer loans $ 96,684 $ 84,416 $ 83,531 $ 91,539
Commercial loans 55,736 54,551 56,179 59,405
----------- ----------- ----------- -----------
Total loans $ 152,420 $ 138,967 $ 139,710 $ 150,944
Effect of credit card securitization activity 21,300 23,900 25,600 21,100
----------- ----------- ----------- -----------
Managed loans $ 173,720 $ 162,867 $ 165,310 $ 172,044
Total Assets $250,489 $ 216,574 $ 213,701 $ 216,922
- -------------------------------------------------------------------------------------------------------
CREDIT DATA
CONSUMER
Net credit loss ratio (adjusted) 2.07% 2.54% 2.98% 2.69%
90+ days past due % loans (adjusted) 3.14% 3.77% 4.11% 4.44%
Cash-basis loans % loans 2.69% 3.45% 3.80% 3.84%
Credit loss allowance % loans 1.90% 1.89% 1.60% 1.24%
- -------------------------------------------------------------------------------------------------------
COMMERCIAL
Net credit loss ratio n/m 1.13% 2.81% 5.13%
Cash-basis loans % loans 3.80% 8.57% 12.47% 14.06%
Credit loss allowance % loans(25) 5.96% 5.10% 4.49% 3.65%
- -------------------------------------------------------------------------------------------------------
TOTAL CITICORP
Allowance for credit losses $ 5,155 $ 4,379 $ 3,859 $ 3,308
Allowance % total loans 3.38% 3.15% 2.76% 2.19%
Other real estate owned & APD $ 1,722 $ 2,799 $ 3,090 $ 1,936
Non-performing assets % NPL+OREO 4.23% 7.47% 9.50% 9.14%
- -------------------------------------------------------------------------------------------------------
<CAPTION>
($ IN MILLIONS)
BANKING ACTIVITIES 1990 1989
- -------------------------------------------------------------------------
CAPITALIZATION:
<S> <C> <C>
Net risk-adjusted assets * *
Tier 1 capital ratio * *
Total capital ratio(23) * *
Leverage(24) * *
Common equity to assets 3.77% 3.57%
- -------------------------------------------------------------------------
NET INTEREST
REVENUE STATISTICS
Net interest revenue $ 7,247 $ 7,443
Effect of credit card securitization activity 1,101 414
---------- ----------
Total adjusted $ 8,348 $ 7,857
Average interest-earning assets ($MM) $206,300 $ 197,642
Effect of credit card securitization activity 12,000 4,000
---------- ----------
Total adjusted $ 218,300 $ 201,642
Net interest margin (%) 3.51% 3.77%
Effect of credit card securitization activity 0.30% 0.03%
--------------------------
Total adjusted 3.81% 3.80%
- -------------------------------------------------------------------------
BALANCE SHEET
INFORMATION
Deposits $ 142,452 $ 137,922
Consumer loans $ 95,136 $ 97,075
Commercial loans 61,172 63,037
---------- ----------
Total loans $ 156,308 $ 160,112
Effect of credit card securitization activity 16,300 6,900
---------- ----------
Managed loans $ 172,608 $ 167,012
Total Assets $ 216,986 $230,643
- -------------------------------------------------------------------------
CREDIT DATA
CONSUMER
Net credit loss ratio (adjusted) 1.86% 1.51%
90+ days past due % loans (adjusted) n/a n/a
Cash-basis loans % loans 2.81% 2.07%
Credit loss allowance % loans 0.98% 0.87%
- -------------------------------------------------------------------------
COMMERCIAL
Net credit loss ratio 2.35% 1.19%
Cash-basis loans % loans 14.05% 11.39%
Credit loss allowance % loans(25) 5.76% 6.16%
- -------------------------------------------------------------------------
TOTAL CITICORP
Allowance for credit losses $ 4,451 $ 4,729
Allowance % total loans 2.85% 2.95%
Other real estate owned & APD $ 1,801 n/a
Non-performing assets % NPL+OREO 8.37% n/a
- -------------------------------------------------------------------------
</TABLE>
On August 4, 1999, CitiFinancial Credit Company ("CCC") , formerly Commercial
Credit Company, an indirect wholly-owned subsidiary of Citigroup, Inc., was
contributed to and became a subsidiary of Citicorp Banking Corporation, a
wholly-owned subsidiary of Citicorp. The data presented herein for Citicorp
only does not reflect this contribution.
* Prior to the adoption of the Federal Bank Regulatory Agency's Prompt
Corrective Action Rules, which were finalized during 1992.
Refer to page 26 for endnotes.
Page 25 of 26
<PAGE>
END NOTES
- --------------------------------------------------------------------------------
CITIGROUP
1. Adjusted for the 3 for 2 stock split effective 5/28/99.
2. Includes total equity plus parent trust and redeemable preferred
securities.
3. Core income basis, including FAS 115.
4. Prior to 1998, Travelers Group historical stock price.
5. Travelers Group historical common shares outstanding times historical
closing price plus Citicorp historical market capitalization.
6. Consolidated preferred dividends.
7. Includes parent trust and redeemable preferred securities.
8. Citicorp shares have been converted into Citigroup share equivalent.
9. Results have been restated to reflect changes in capital and tax
allocations among the segments to conform to the policies of the
predecessor companies.
- --------------------------------------------------------------------------------
GLOBAL CONSUMER - BANKING/LENDING - MORTGAGE BANKING
10. Mortgage Loans include Loans Held for Sale.
- --------------------------------------------------------------------------------
GLOBAL CONSUMER - BANKING/LENDING - CARDS
11. Includes U.S. Bankcards (with Travelers Bank).
12. Includes delinquency and other risk-based charges.
- --------------------------------------------------------------------------------
GLOBAL CONSUMER - BANKING/LENDING - CITIFINANCIAL
13. In 1998, CitiFinancial changed its write-off policy for bankruptcy
accounts in order to be consistent with other Citigroup entities.
Prior periods presented have been restated.
- --------------------------------------------------------------------------------
GLOBAL CONSUMER - INSURANCE - TRAVELERS LIFE & ANNUITY
14. Pre-tax contributions for annuities, life and long term care insurance
include investment income on attributed capital. Earnings on excess
capital, earnings from run-off businesses and goodwill amortization
expense are excluded. Attributed capital includes allocated statutory
capital up to 500% of the risk-adjusted capital (as defined by
regulators) specific to each product line.
15. Over 80% of Travelers Life & Annuity's business is underwritten by The
Travelers Insurance Company, with the balance underwritten by its
wholly-owned subsidiary, The Travelers Life & Annuity Company.
16. 1998 Results reflect the inclusion of the operation of Citicorp
Insurance Group.
- --------------------------------------------------------------------------------
GLOBAL CONSUMER - INSURANCE - TRAVELERS PROPERTY CASUALTY - PERSONAL LINES
17. Travelers Property Casualty (TAP), an indirect majority-owned
subsidiary of Citigroup, was formed from the April 1996 combination of
Travelers Indemnity with the domestic property and casualty business
acquired from Aetna Services.
- --------------------------------------------------------------------------------
GLOBAL CONSUMER - INTERNATIONAL - EMEA, ASIA PACIFIC, LATIN AMERICA
18. Average Net Interest Margin % is net interest revenue as a percentage
of the greater of average loans or average customer deposits.
- --------------------------------------------------------------------------------
GLOBAL CONSUMER - E-CITI
19. The Advanced Development Group formed in 1997, changed its name in
1999 to e-Citi. Financial data prior to 1997 represents pre-existing
business units transferred into e-Citi.
- --------------------------------------------------------------------------------
ADDENDUM - WORLDWIDE CARDS
20. Global card operations consists of the Cards business segment and card
operations included within the International Consumer segments.
21. Excludes inactive accounts.
22. Includes delinquency and other risk-based charges.
- --------------------------------------------------------------------------------
ADDENDUM - CITICORP (ONLY)
23. Tier 1 and Tier 2.
24. Tier 1 capital divided by average adjusted assets.
25. Years prior to 1991 have not been restated to reflect the adoption of
FAS 114 as of January 1, 1995.
- --------------------------------------------------------------------------------
n/a Not applicable.
n/m Not meaningful.
- --------------------------------------------------------------------------------
Page 26 of 26
