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<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) October 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)
399 Park Avenue, 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 October 17, 2000, Citigroup Inc. reported core income of $3.1 billion
for the third quarter ended September 30, 2000. Core income per share,
diluted, was $0.67, a 26% increase over that reported in the 1999 third
quarter. For the first nine months of 2000, Citigroup's core income was
a record $9.7 billion, or $2.10 per share, rising 33% from the first
nine months of 1999. Continued revenue momentum across the company's
businesses, combined with expense and risk discipline resulted in:
o Income growth of 17% in the Global Consumer Group, 40% in the Global
Corporate and Investment Bank, and 14% for Global Investment
Management and Private Banking;
o Revenue growth of 15%;
o Return on equity of 24%;
o Total equity (including trust preferred securities) increasing to
$58.6 billion at 9/30/00.
"Our continued management discipline, business diversification and
geographic reach enable us to deliver consistently strong results for
our shareholders," said Sanford I. Weill, Chairman and Chief Executive
Officer. "We are creating greater efficiencies within our company,
extending our capabilities on the internet and strengthening our balance
sheet. We continue to invest our substantial capital to expand our
leadership in key areas, enhance our long-term growth and build our base
of stable, recurring earnings. Our recently announced plan to merge with
Associates First Capital Corporation will greatly expand our global
consumer finance business and further solidify our place as the number
one card company, both in the U.S. and globally. It will also strengthen
our position in commercial finance. In addition, we are pleased that
Associates' CEO Keith Hughes and CFO Roy Guthrie will be joining our
management team."
GLOBAL CONSUMER
3rd Quarter Core Income: $1.32 Billion, up 17% from $1.13 Billion
Citigroup's Global Consumer Group once again reported record earnings,
driven by improvements in the North American card business and strong
performance across Asian marketplaces. The global cards business, which
spans 46 countries with 56.8 million accounts, posted income of $476
million, up 32%, and had managed receivables of $95.6 billion. Credit
across all of Citigroup's global consumer businesses continued its
favorable trend in the quarter. Cross marketing programs continue to
generate incremental sales across Citigroup's consumer distribution
channels. Mortgage products sold through Salomon Smith Barney financial
consultants totaled $469 million, and sales of SSB Citi Asset Management
investment products through the Consumer Group businesses were $3.5 billion
in the quarter.
o Banking/Lending income rose 17% to $706 million. CITIBANKING NORTH AMERICA
increased income 34% in the quarter as substantial growth in mutual fund
and annuity sales, as well as higher deposit volumes, drove a 9% increase
in revenues. MORTGAGE BANKING results, which include the Student Loan
business, rose 19% as higher loan volumes and continued mortgage credit
improvements were partly offset by spread compression. Income for NORTH
AMERICA CARDS increased 23%. Revenue growth of 4% reflected 18% receivables
growth and sales volume increases of 17%, partly offset by continued spread
compression. Accounts rose by 1.2 million (including the Canada Trust
acquisition) and net loss rates continued to improve, falling to 3.50%.
CITIFINANCIAL'S income fell 8%, due in part to a $15 million (after-tax)
release of a litigation reserve resulting from the settlement of a claim in
the prior year quarter.
<PAGE>
Receivables growth continued its strong pace, at 19%, and loss rates
remained stable, at 1.91%.
o Income from the Insurance businesses rose 22% to $371 million. TRAVELERS
LIFE AND ANNUITY income rose 7% driven by strong business volume growth,
and expense management. Sales momentum continued with increases of 17% for
individual annuities and 22% for group annuities. Income growth of 9% at
PRIMERICA FINANCIAL SERVICES reflected a 31% increase in mutual fund sales
and increased net investment income partly offset by continued investment
in international expansion. PERSONAL LINES income increased 196% over the
third quarter of 1999 when the business incurred a $33 million (after-tax)
charge for the curtailment of SECURE in addition to catastrophe losses
related to Hurricane Floyd. Higher loss cost trends and lower prior year
favorable reserve development were partly offset by the lower catastrophe
losses and incremental income from the minority interest buyback.
o International income increased 17%. Western Europe income increased 24%,
driven by lending products, including cards, as well as strong investment
product sales. CEEMEA income declined 44% due to the prior year inclusion
of a $16 million (after tax) gain related to an investment in an affiliate
as well as increased expenses for expansion in new countries. In Japan,
income rose 44% to $36 million as revenues increased 57%. Revenue growth
was driven by cards, including the impact of Diners Club Japan acquired in
the first quarter, as well as foreign currency deposits and investment
product sales. Excluding Japan, Asia income increased 54% reflecting volume
growth in cards, deposits and investment product sales, and credit
improvements. LATIN AMERICA income fell 38% as lower credit costs
throughout the region were more than offset by lower earnings in Mexico.
Results in Mexico were impacted by the loss of an interest subsidy related
to the Confia acquisition.
GLOBAL CORPORATE AND INVESTMENT BANK
3rd Quarter Core Income: $1.59 Billion, up 40% from $1.13 Billion
Global Corporate and Investment Bank earnings for the third quarter of 2000
rose 40% from the comparable period last year, with revenue growth of 26%.
Citigroup continued to expand in the emerging markets, with the opening of
branches in Israel and Bulgaria. GLOBAL FINANCE MAGAZINE named Citigroup
the Best Emerging Markets Bank, and EUROMONEY awarded the company with the
Best Bank in Asia and Best Foreign Bank in 20 emerging market countries.
Citigroup was also named the top Project Finance bank in the world by
GLOBAL FINANCE magazine. The Global Corporate and Investment Bank continued
to build its position in Europe, ranking #1 in European syndicated lending.
Salomon Smith Barney again topped the league tables in a number of
categories, ranking #1 in investment grade debt underwriting and #2 in
global underwriting, and in Japan, Nikko Salomon Smith Barney, the
company's joint venture, was #1 in Japanese equity underwriting. In
addition, Salomon Smith Barney's equity research team ranked third in
INSTITUTIONAL INVESTOR magazine's "All America Research Team" survey.
During the quarter, Salomon Smith Barney closed the acquisition of AST
Stock Plan, Inc., which enhances its leading position in stock option
execution and administrative services, and announced the purchase of The
Geneva Companies, which extends its capabilities in advisory services to
small and mid-sized companies.
o Salomon Smith Barney's income was $622 million, a 44% increase from the
1999 quarter. Income for SSB excludes certain items booked on Citibank
legal vehicles and reflected in the Global Relationship Bank results.
Revenues rose 39% from the prior year quarter, with record investment
banking revenues resulting from record merger and acquisition fees. Asset
management revenue retained in the segment was also a quarterly record.
Commission revenues increased 22% from the 1999 quarter to $992 million
primarily as a result of growth in listed commissions. Revenues from
principal transactions increased to $763 million reflecting increases in
institutional fixed income and equities revenues. The Private Client
business continued to perform well, generating 14% growth in income, with
the value of client assets rising 24% to $1.047 trillion, and assets under
fee-based management increasing 40% to $202 billion. More than 1.7 million
accounts, or 24% of the total, now use ACCESS, Salomon Smith Barney's web
site and on-line trading product. Expenses increased 37% in the quarter,
reflecting an increase in compensation expense and the Schroders
acquisition. Income also
<PAGE>
reflects the company's 20.7% equity ownership in Nikko.
o The Global Relationship Bank (in the developed markets of North America,
Europe and Japan) reported income of $250 million, up 75% from the 1999
third quarter. Revenue growth of 19% was driven by double-digit increases
in transaction services, lending and structured products and the
acquisition of Copelco, combined with improved principal transactions.
Expenses increased by 3% as higher incentive compensation and the impact of
Copelco were partially offset by the absence of Year 2000 expenses and
ongoing expense initiatives. Net-write offs rose $7 million, to $13 million
in the quarter, reflecting the acquisition of Copelco, which closed in the
second quarter.
o Emerging Markets Corporate Banking reported record income of $401 million,
up 32%. Revenues rose 20% reflecting double-digit growth in transaction
services and improved principal transactions revenue, and the acquisition
of Bank Handlowy, which closed in the second quarter. All regions within
the Emerging Markets experienced revenue growth in the quarter. Expenses
rose 12%, including the impact of Bank Handlowy, and net write-offs of $22
million fell to their lowest level since the first quarter of 1997, with
lower losses experienced across most regions. The 1999 third quarter
included a lower provision for credit losses due to an improved credit
outlook in the Emerging Markets.
o Continued pricing improvements across all market segments and the
incremental earnings from the minority interest buyback led to a 24%
increase in income for Travelers Property Casualty Commercial Lines,
offsetting increased loss cost trends and lower prior year favorable
reserve development. Premium growth of 19% reflected the increases in rates
as well as the impact of the Reliance Surety acquisition and the purchase
of renewal rights for Reliance's middle market business.
GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING
3rd Quarter Core Income: $176 Million, up 14% from $154 Million
During the quarter, Citigroup's Global Investment Management and Private Banking
Group continued to develop its global research platform, improve investment
performance and build share in proprietary distribution channels. Revenues for
the quarter increased 22%, with growth across Asset Management, Private Banking
and Retirement
Services.
o Asset Management income rose 14% to $96 million in the quarter. Revenues
increased 32%, reflecting ownership in Siembra and Garante in the
retirement services market, and growth in its core business, which offset
higher expenses related to continued investment in the global sales,
marketing and research platform. Assets under management rose 9% over the
prior year period, to $397 billion.
Sales of the Group's long-term mutual funds and managed account products
through the Salomon Smith Barney retail channel rose 21% to $5.2 billion,
representing 43% of all such products distributed through the retail
channel. SSB Citi Asset Management products accounted for 53% of
Primerica's sales of U.S. mutual and money funds in the quarter, totaling
$449 million. The Group also sold $3.0 billion in mutual and money funds
through Citibank's global consumer channels, raising $327 million in Europe
and $385 million in Japan. In the U.S., SSB Citi Asset Management funds
became the top selling fund group in the Citibank channel (up from #5)
following the launch of the Smith Barney fund family this quarter.
Institutional client assets rose to $151 billion, including $4.9 billion in
assets raised from Global Corporate and Investment Bank customers in the
third quarter.
<PAGE>
o Income for the Private Bank rose 14% to $80 million. Client business
volumes, which include loans, deposits and client assets under fee-based
management and custody accounts, rose 20% to $154 billion. Increased
volumes in discretionary investment management as well as in banking and
lending products drove revenue growth of 10%. Expenses grew 13%, as the
Private Bank continued to invest in its sales processes.
CORPORATE/OTHER, E-CITI, AND INVESTMENT ACTIVITIES
The increased loss from Corporate/Other in the quarter primarily reflected
higher funding costs. The net loss in e-Citi, the remainder of internet-related
development activities not allocated to the individual businesses, rose $4
million to $23 million. Income from Investment Activities was $292 million in
the quarter, which included $199 million in after-tax gains on the exchange of
certain Latin American bonds during the quarter.
# # #
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, and the business impact of recent acquisitions.
# # #
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 THIRD QUARTER % NINE MONTHS %
---------------------- ----------------------
(IN MILLIONS OF DOLLARS) 2000 1999 Change 2000 1999 Change
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GLOBAL CONSUMER
Citibanking North America .......................... $ 143 $ 107 34 $ 420 $ 283 48
Mortgage Banking ................................... 70 59 19 196 170 15
North America Cards ................................ 369 301 23 973 858 13
CitiFinancial ...................................... 124 135 (8) 353 284 24
---------------------- ----------------------
Banking/Lending ...................................... 706 602 17 1,942 1,595 22
---------------------- ----------------------
Travelers Life and Annuity ......................... 179 168 7 568 488 16
Primerica Financial Services ....................... 124 114 9 368 337 9
Personal Lines ..................................... 68 23 196 225 185 22
---------------------- ----------------------
Insurance ............................................ 371 305 22 1,161 1,010 15
---------------------- ----------------------
Western Europe ..................................... 88 71 24 251 203 24
Japan .............................................. 36 25 44 104 69 51
Emerging Markets Consumer Banking .................. 189 171 11 612 433 41
---------------------- ----------------------
Total International .................................. 313 267 17 967 705 37
---------------------- ----------------------
e-Consumer (A)........................................ (43) (29) (48) (157) (78) (101)
Other Consumer ....................................... (25) (12) (108) (82) (53) (55)
---------------------- ----------------------
TOTAL GLOBAL CONSUMER ................................ 1,322 1,133 17 3,831 3,179 21
---------------------- ----------------------
GLOBAL CORPORATE AND INVESTMENT BANK
Salomon Smith Barney ................................. 622 432 44 2,220 1,690 31
Global Relationship Banking .......................... 250 143 75 751 473 59
Emerging Markets Corporate Banking ................... 401 303 32 1,163 904 29
Commercial Lines Insurance ........................... 315 255 24 822 645 27
---------------------- ----------------------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK ........... 1,588 1,133 40 4,956 3,712 34
---------------------- ----------------------
GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING
SSB Citi Asset Management Group ...................... 96 84 14 283 250 13
Global Private Bank .................................. 80 70 14 239 196 22
TOTAL GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING 176 154 14 522 446 17
INVESTMENT ACTIVITIES ................................ 292 194 51 1,160 445 161
Corporate/Other....................................... (244) (145) (68) (693) (404) (72)
e-Citi................................................ (23) (19) (21) (56) (36) (56)
---------------------- ----------------------
TOTAL CORPORATE/OTHER................................. (267) (164) (63) (749) (440) (70)
---------------------- ----------------------
CORE INCOME........................................... 3,111 2,450 27 9,720 7,342 32
---------------------- ----------------------
Restructuring-Related Items -- After Tax (A)........ (23) (15) 53 (37) 30 NM
Cumulative Effect of Accounting Changes (B)........... - - - - (127) NM
---------------------- ----------------------
NET INCOME............................................ $ 3,088 $ 2,435 27 $ 9,683 $ 7,245 34
====================== ======================
DILUTED EARNINGS PER SHARE:
CORE INCOME........................................... $ 0.67 $ 0.53 26 $ 2.10 $ 1.58 33
NET INCOME............................................ 0.67 0.52 29 2.09 1.55 35
====================== ======================
</TABLE>
(A) The restructuring-related items in the 2000 third quarter included a charge
of $15 million and accelerated depreciation of $8 million. The 2000
year-to-date period included a credit for the reversal of prior charges of
$31 million, $39 million of accelerated depreciation, and $29 million of
charges. The 1999 third quarter included a credit for the reversal of prior
charges of $41 million, a $31 million charge, and $25 million of
accelerated depreciation. The 1999 year-to-date period included a credit
for reversal of prior charges of $166 million, a charge of $31 million, and
$105 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>
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
CORE INCOME SUPPLEMENTAL DISCLOSURE THIRD QUARTER % NINE MONTHS %
---------------------- ----------------------
(IN MILLIONS OF DOLLARS) 2000 1999 Change 2000 1999 Change
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GLOBAL CORPORATE AND INVESTMENT BANK
Global Corporate Finance $ 883 $ 698 27 $ 2,800 $ 2,269 23
Transaction Services 146 54 170 384 137 180
Private Client 247 216 14 865 654 32
Commercial Lines Insurance 315 255 24 822 645 27
Other (3) (90) 97 85 7 NM
---------------------- ----------------------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK............ $ 1,588 $ 1,133 40 $ 4,956 $ 3,712 34
====================== ======================
EMERGING MARKETS CONSUMER AND CORPORATE BANKING (1)
Asia $ 285 $ 237 20 $ 899 $ 638 41
Latin America 210 177 19 703 644 9
Central and Eastern Europe, Middle East, and Africa. 127 106 20 353 224 58
Other 19 25 (24) 21 (11) NM
---------------------- ----------------------
TOTAL EMERGING MARKETS................................ $ 641 $ 545 18 $ 1,976 $ 1,495 32
====================== ======================
GLOBAL WEALTH MANAGEMENT
Private Client $ 247 $ 216 14 $ 865 $ 654 32
SSB Citi Asset Management Group 96 84 14 283 250 13
Global Private Bank 80 70 14 239 196 22
Global Consumer Investment, Life Insurance & Annuity
Products 335 293 14 1,045 853 23
---------------------- ----------------------
TOTAL GLOBAL WEALTH MANAGEMENT........................ $ 758 $ 663 14 $ 2,432 $ 1,953 25
====================== ======================
GLOBAL CARDS
North America $ 369 $ 301 23 $ 973 $ 858 13
International 107 59 81 318 166 92
---------------------- ----------------------
TOTAL GLOBAL CARDS.................................... $ 476 $ 360 32 $ 1,291 $ 1,024 26
====================== ======================
</TABLE>
(1) Also includes Global Investment Management and Private Banking. Excludes
Investment Activities.
NM Not meaningful
Prior quarters data can be found on pages 28 through 31 of the Quarterly
Financial Data Supplement.
--------------------------------------------------------------------------------
<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
North America Cards 6
CitiFinancial 7
INSURANCE
Travelers Life and Annuity 8
Primerica Financial Services 9
Travelers Property Casualty - Personal Lines 10
INTERNATIONAL
Europe, Middle East & Africa 11
Asia Pacific 12
Latin America 13
OTHER CONSUMER 14
GLOBAL CORPORATE AND INVESTMENT BANK:
Salomon Smith Barney 15 & 16
Global Relationship Banking 17
Emerging Markets Corporate Banking 17
Travelers Property Casualty - Commercial Lines 18
GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING:
SSB Citi Asset Management Group and Global Retirement Services 19
Global Private Bank 20
INVESTMENT ACTIVITIES 21
CITIGROUP SUPPLEMENTAL DETAIL
Consolidated Statement of Income 22
Earnings Analysis - Managed Basis 23
Consumer Loan Delinquency Amounts, Net Credit Losses and Ratios 24
Details of Credit Loss Experience 25
Cash Basis and Renegotiated Loans, Other Real Estate Owned and Assets Pending Disposition 26
Insurance Investment Portfolio 27
Global Cards Supplemental Data 28
Global Corporate and Investment Bank - Supplemental Product and Regional Results 29
Emerging Markets - Consumer and Corporate Banking 30
Global Wealth Management 31
CITICORP SUPPLEMENTAL DATA 32
</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 2Q 3Q 4Q
1999 1999 1999 1999
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Core Income $ 2,415 $ 2,477 $ 2,450 $ 2,605
Restructuring - Related Items 74 (29) (15) 17
Cumulative Effect of Accounting Changes (127) -- -- --
---------- ---------- ---------- ----------
NET INCOME $ 2,362 $ 2,448 $ 2,435 $ 2,622
========== ========== ========== ==========
BASIC EARNINGS PER SHARE:
CORE INCOME $ 0.53 $ 0.55 $ 0.54 $ 0.58
========== ========== ========== ==========
NET INCOME $ 0.52 $ 0.54 $ 0.54 $ 0.58
========== ========== ========== ==========
WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO BASIC EPS 4,453.6 4,443.6 4,442.7 4,441.2
========== ========== ========== ==========
PREFERRED DIVIDENDS - BASIC $ 40 $ 38 $ 38 $ 33
========== ========== ========== ==========
DILUTED EARNINGS PER SHARE:
CORE INCOME $ 0.52 $ 0.53 $ 0.53 $ 0.56
========== ========== ========== ==========
NET INCOME $ 0.51 $ 0.52 $ 0.52 $ 0.56
========== ========== ========== ==========
CORE DILUTED EARNINGS PER SHARE EXCLUDING
GOODWILL AMORTIZATION $ 0.53 $ 0.54 $ 0.54 $ 0.57
========== ========== ========== ==========
ADJUSTED WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO DILUTED EPS 4,586.6 4,600.4 4,586.9 4,591.5
========== ========== ========== ==========
PREFERRED DIVIDENDS - DILUTED $ 37 $ 35 $ 34 $ 33
========== ========== ========== ==========
COMMON SHARES OUTSTANDING, AT PERIOD END 4,507.1 4,502.3 4,489.0 4,490.0
========== ========== ========== ==========
TIER 1 CAPITAL RATIO 8.86% 9.37% 9.59% 9.65%
========== ========== ========== ==========
TOTAL CAPITAL RATIO 11.54% 12.07% 12.28% 12.33%
========== ========== ========== ==========
LEVERAGE RATIO 6.24% 6.38% 6.62% 6.80%
========== ========== ========== ==========
TOTAL ASSETS, AT PERIOD END (IN BILLIONS) $ 690.5 $ 689.1 $ 686.8 $ 715.7
========== ========== ========== ==========
STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS) $ 43.8 $ 44.9 $ 46.3 $ 48.9
========== ========== ========== ==========
STOCKHOLDERS' EQUITY AND TRUST SECURITIES, AT PERIOD END (IN BILLIONS) $ 48.8 $ 49.8 $ 51.2 $ 53.8
========== ========== ========== ==========
BOOK VALUE PER SHARE, AT PERIOD END $ 9.26 $ 9.51 $ 9.85 $ 10.46
========== ========== ========== ==========
RETURN ON COMMON EQUITY (NET INCOME) 23.1% 22.9% 22.0% 22.8%
========== ========== ========== ==========
RETURN ON COMMON EQUITY (CORE INCOME) 23.6% 23.2% 22.1% 22.6%
========== ========== ========== ==========
* Preliminary
<CAPTION>
1Q 2Q 3Q
2000 2000 2000
---------- ---------- ----------
<S> <C> <C> <C>
Core Income $ 3,602 $ 3,007 $ 3,111
Restructuring - Related Items (12) (2) (23)
Cumulative Effect of Accounting Changes -- -- --
---------- ---------- ----------
NET INCOME $ 3,590 $ 3,005 $ 3,088
========== ========== ==========
BASIC EARNINGS PER SHARE:
CORE INCOME $ 0.80 $ 0.67 $ 0.69
========== ========== ==========
NET INCOME $ 0.80 $ 0.67 $ 0.69
========== ========== ==========
WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO BASIC EPS 4,442.1 4,443.6 4,444.8
========== ========== ==========
PREFERRED DIVIDENDS - BASIC $ 30 $ 29 $ 29
========== ========== ==========
DILUTED EARNINGS PER SHARE:
CORE INCOME $ 0.78 $ 0.65 $ 0.67
========== ========== ==========
NET INCOME $ 0.78 $ 0.65 $ 0.67
========== ========== ==========
CORE DILUTED EARNINGS PER SHARE EXCLUDING
GOODWILL AMORTIZATION $ 0.79 $ 0.66 $ 0.68
========== ========== ==========
ADJUSTED WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO DILUTED EPS 4,580.9 4,586.9 4,599.4
========== ========== ==========
PREFERRED DIVIDENDS - DILUTED $ 30 $ 29 $ 29
========== ========== ==========
COMMON SHARES OUTSTANDING, AT PERIOD END 4,494.2 4,493.0 4,491.9
========== ========== ==========
TIER 1 CAPITAL RATIO 9.78% 8.62% 8.3% *
========== ========== ==========
TOTAL CAPITAL RATIO 12.47% 11.12% 10.6% *
========== ========== ==========
LEVERAGE RATIO 6.73% 6.07% 6.0% *
========== ========== ==========
TOTAL ASSETS, AT PERIOD END (IN BILLIONS) $ 738.2 $ 791.3 $ 805 *
========== ========== ==========
STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS) $ 50.3 $ 51.6 $ 53.6 *
========== ========== ==========
STOCKHOLDERS' EQUITY AND TRUST SECURITIES, AT PERIOD END (IN BILLIONS) $ 55.2 $ 56.5 $ 58.6 *
========== ========== ==========
BOOK VALUE PER SHARE, AT PERIOD END $ 10.80 $ 11.08 $ 11.55
========== ========== ==========
RETURN ON COMMON EQUITY (NET INCOME) 29.8% 24.7% 24.0% *
========== ========== ==========
RETURN ON COMMON EQUITY (CORE INCOME) 29.9% 24.8% 24.2% *
========== ========== ==========
* Preliminary
<CAPTION>
3Q 2000 VS. YTD YTD
3Q 1999 INCREASE/ 3Q 3Q
(DECREASE) 1999 2000
----------------------- ---------- ----------
<S> <C> <C> <C>
Core Income 27% $ 7,342 $ 9,720
Restructuring - Related Items 30 (37)
Cumulative Effect of Accounting Changes (127) --
---------- ----------
NET INCOME 27% $ 7,245 $ 9,683
========== ==========
BASIC EARNINGS PER SHARE:
CORE INCOME 28% $ 1.63 $ 2.17
========== ==========
NET INCOME 28% $ 1.60 $ 2.16
========== ==========
WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO BASIC EPS 4,446.6 4,443.5
========== ==========
PREFERRED DIVIDENDS - BASIC $ 116 $ 88
========== ==========
DILUTED EARNINGS PER SHARE:
CORE INCOME 26% $ 1.58 $ 2.10
========== ==========
NET INCOME 29% $ 1.55 $ 2.09
========== ==========
CORE DILUTED EARNINGS PER SHARE EXCLUDING
GOODWILL AMORTIZATION 26% $ 1.61 $ 2.13
========== ==========
ADJUSTED WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO DILUTED EPS 4,591.3 4,589.1
========== ==========
PREFERRED DIVIDENDS - DILUTED $ 106 $ 88
========== ==========
COMMON SHARES OUTSTANDING, AT PERIOD END 4,489.0 4,491.9
========== ==========
TIER 1 CAPITAL RATIO 9.59% 8.3% *
========== ==========
TOTAL CAPITAL RATIO 12.28% 10.6% *
========== ==========
LEVERAGE RATIO 6.62% 6.0% *
========== ==========
TOTAL ASSETS, AT PERIOD END (IN BILLIONS) $ 686.8 $ 805 *
========== ==========
STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS) $ 46.3 $ 53.6 *
========== ==========
STOCKHOLDERS' EQUITY AND TRUST SECURITIES, AT PERIOD END (IN BILLIONS) $ 51.2 $ 58.6 *
========== ==========
BOOK VALUE PER SHARE, AT PERIOD END $ 9.85 $ 11.55
========== ==========
RETURN ON COMMON EQUITY (NET INCOME) 22.7% 26.1% *
========== ==========
RETURN ON COMMON EQUITY (CORE INCOME) 23.0% 26.2% *
========== ==========
* Preliminary
<CAPTION>
YTD 3Q 2000 VS.
YTD 3Q 1999 INCREASE/
(DECREASE)
-----------------------
<S> <C>
Core Income 32%
Restructuring - Related Items
Cumulative Effect of Accounting Changes
NET INCOME 34%
BASIC EARNINGS PER SHARE:
CORE INCOME 33%
NET INCOME 35%
WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO BASIC EPS
PREFERRED DIVIDENDS - BASIC
DILUTED EARNINGS PER SHARE:
CORE INCOME 33%
NET INCOME 35%
CORE DILUTED EARNINGS PER SHARE EXCLUDING
GOODWILL AMORTIZATION 32%
ADJUSTED WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO DILUTED EPS
PREFERRED DIVIDENDS - DILUTED
COMMON SHARES OUTSTANDING, AT PERIOD END
TIER 1 CAPITAL RATIO
TOTAL CAPITAL RATIO
LEVERAGE RATIO
TOTAL ASSETS, AT PERIOD END (IN BILLIONS)
STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS)
STOCKHOLDERS' EQUITY AND TRUST SECURITIES, AT PERIOD END (IN BILLIONS)
BOOK VALUE PER SHARE, AT PERIOD END
RETURN ON COMMON EQUITY (NET INCOME)
RETURN ON COMMON EQUITY (CORE INCOME)
* Preliminary
</TABLE>
Page 1
<PAGE>
CITIGROUP -- SEGMENT NET REVENUES
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America $ 506 $ 516 $ 526 $ 556
Mortgage Banking 169 183 199 196
North America Cards 1,961 1,981 1,971 2,042
CitiFinancial 361 396 421 441
-------------- -------------- -------------- --------------
Total Banking / Lending 2,997 3,076 3,117 3,235
INSURANCE
Travelers Life and Annuity 771 867 869 887
Primerica Financial Services 432 443 444 456
Personal Lines 983 1,005 1,018 1,037
-------------- -------------- -------------- --------------
Total Insurance 2,186 2,315 2,331 2,380
INTERNATIONAL
Western Europe 493 489 499 510
Japan 84 92 108 108
Asia 433 450 471 498
Latin America 464 496 499 511
Central & Eastern Europe, Middle East and Africa 68 74 108 87
-------------- -------------- -------------- --------------
Total Emerging Markets Consumer Banking 965 1,020 1,078 1,096
-------------- -------------- -------------- --------------
Total International 1,542 1,601 1,685 1,714
E-CONSUMER 24 23 27 34
OTHER 49 39 30 8
-------------- -------------- -------------- --------------
TOTAL GLOBAL CONSUMER 6,798 7,054 7,190 7,371
-------------- -------------- -------------- --------------
GLOBAL CORPORATE AND INVESTMENT BANK:
Salomon Smith Barney 3,341 3,269 2,791 3,279
Global Relationship Banking 1,117 1,038 1,020 1,033
Emerging Markets Corporate Banking 1,145 1,098 1,057 1,052
Commercial Lines 1,534 1,558 1,578 1,595
-------------- -------------- -------------- --------------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 7,137 6,963 6,446 6,959
-------------- -------------- -------------- --------------
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
SSB Citi Asset Management Group and Global Retirement Services 356 358 371 409
Global Private Bank 274 301 305 332
-------------- -------------- -------------- --------------
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 630 659 676 741
-------------- -------------- -------------- --------------
INVESTMENT ACTIVITIES 153 270 311 356
CORPORATE / OTHER (60) 7 (43) (100)
E-CITI - (3) (7) (2)
-------------- -------------- -------------- --------------
TOTAL CORPORATE / OTHER (60) 4 (50) (102)
---------------------------------------------------------------------------------------------------------------------------
TOTAL ADJUSTED NET REVENUES $ 14,658 $ 14,950 $ 14,573 $ 15,325
---------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION:
EMERGING MARKETS - CONSUMER AND CORPORATE BANKING $ 2,343 $ 2,440 $ 2,454 $ 2,453
GLOBAL WEALTH MANAGEMENT $ 3,335 $ 3,641 $ 3,564 $ 3,829
GLOBAL CARDS $ 2,418 $ 2,422 $ 2,460 $ 2,559
Reclassified to conform to the current period's presention.
<CAPTION>
3Q 2000 VS.
1Q 2Q 3Q 3Q 1999 INCREASE/
2000 2000 2000 (DECREASE)
-------------- ------------- ------------ ------------------
<S> <C> <C> <C> <C>
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America $ 575 $ 569 $ 572 9%
Mortgage Banking 204 206 203 2%
North America Cards 1,996 1,969 2,059 4%
CitiFinancial 462 474 491 17%
-------------- ------------- ------------
Total Banking / Lending 3,237 3,218 3,325 7%
INSURANCE
Travelers Life and Annuity 1,010 983 899 3%
Primerica Financial Services 472 479 474 7%
Personal Lines 1,027 1,041 1,048 3%
-------------- ------------- ------------
Total Insurance 2,509 2,503 2,421 4%
INTERNATIONAL
Western Europe 497 474 466 (7%)
Japan 142 169 170 57%
Asia 541 522 525 11%
Latin America 513 466 436 (13%)
Central & Eastern Europe, Middle East and Africa 96 102 106 (2%)
-------------- ------------- ------------
Total Emerging Markets Consumer Banking 1,150 1,090 1,067 (1%)
-------------- ------------- ------------
Total International 1,789 1,733 1,703 1%
E-CONSUMER 31 28 77 185%
OTHER 11 (11) (11) NM
-------------- ------------- ------------
TOTAL GLOBAL CONSUMER 7,577 7,471 7,515 5%
-------------- ------------- ------------
GLOBAL CORPORATE AND INVESTMENT BANK:
Salomon Smith Barney 4,186 3,693 3,870 39%
Global Relationship Banking 1,207 1,265 1,215 19%
Emerging Markets Corporate Banking 1,240 1,272 1,265 20%
Commercial Lines 1,568 1,626 1,747 11%
-------------- ------------- ------------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 8,201 7,856 8,097 26%
-------------- ------------- ------------
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
SSB Citi Asset Management Group and Global Retirement Services 436 479 491 32%
Global Private Bank 362 338 337 10%
-------------- ------------- ------------
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 798 817 828 22%
-------------- ------------- ------------
INVESTMENT ACTIVITIES 1,016 387 495 59%
CORPORATE / OTHER (99) (155) (163) (279%)
E-CITI 10 (3) (8) (14%)
-------------- ------------- ------------
TOTAL CORPORATE / OTHER (89) (158) (171) (242%)
-------------------------------------------------------------------------------------------------------
TOTAL ADJUSTED NET REVENUES $ 17,503 $ 16,373 $ 16,764 15%
-------------------------------------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION:
EMERGING MARKETS - CONSUMER AND CORPORATE BANKING $ 2,802 $ 2,775 $ 2,725 11%
GLOBAL WEALTH MANAGEMENT $ 4,384 $ 4,120 $ 4,035 13%
GLOBAL CARDS $ 2,539 $ 2,550 $ 2,623 7%
Reclassified to conform to the current period's presention.
<CAPTION>
YTD YTD YTD 3Q 2000 VS.
3Q 3Q YTD 3Q 1999 INCREASE/
1999 2000 (DECREASE)
------------ ------------ --------------------
<S> <C> <C> <C>
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America $ 1,548 $ 1,716 11%
Mortgage Banking 551 613 11%
North America Cards 5,913 6,024 2%
CitiFinancial 1,178 1,427 21%
------------ ------------
Total Banking / Lending 9,190 9,780 6%
INSURANCE
Travelers Life and Annuity 2,507 2,892 15%
Primerica Financial Services 1,319 1,425 8%
Personal Lines 3,006 3,116 4%
------------ ------------
Total Insurance 6,832 7,433 9%
INTERNATIONAL
Western Europe 1,481 1,437 (3%)
Japan 284 481 69%
Asia 1,354 1,588 17%
Latin America 1,459 1,415 (3%)
Central & Eastern Europe, Middle East and Africa 250 304 22%
--------------------------
------------ ------------
Total Emerging Markets Consumer Banking 3,063 3,307 8%
------------ ------------
Total International 4,828 5,225 8%
E-CONSUMER 74 136 84%
OTHER 118 (11) NM
------------ ------------
TOTAL GLOBAL CONSUMER 21,042 22,563 7%
------------ ------------
GLOBAL CORPORATE AND INVESTMENT BANK:
Salomon Smith Barney 9,401 11,749 25%
Global Relationship Banking 3,175 3,687 16%
Emerging Markets Corporate Banking 3,300 3,777 14%
Commercial Lines 4,670 4,941 6%
------------ ------------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 20,546 24,154 18%
------------ ------------
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
SSB Citi Asset Management Group and Global Retirement Services 1,085 1,406 30%
Global Private Bank 880 1,037 18%
------------ ------------
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 1,965 2,443 24%
------------ ------------
INVESTMENT ACTIVITIES 734 1,898 159%
CORPORATE / OTHER (96) (417) (334%)
E-CITI (10) (1) 90%
------------ ------------
TOTAL CORPORATE / OTHER (106) (418) (294%)
----------------------------------------------------------------------------------------
TOTAL ADJUSTED NET REVENUES $ 44,181 $ 50,640 15%
----------------------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION:
EMERGING MARKETS - CONSUMER AND CORPORATE BANKING $ 7,237 $ 8,302 15%
GLOBAL WEALTH MANAGEMENT $ 10,540 $ 12,539 19%
GLOBAL CARDS $ 7,300 $ 7,712 6%
</TABLE>
Reclassified to conform to the current period's presention.
Page 2
<PAGE>
CITIGROUP -- SEGMENT CORE INCOME
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q
1999 1999 1999 1999 2000
-------- -------- -------- ------- --------
<S> <C> <C> <C> <C> <C>
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America $ 72 $ 104 $ 107 $ 115 $ 138
Mortgage Banking 59 52 59 55 61
North America Cards 277 280 301 324 296
CitiFinancial 71 78 135 108 112
-------- -------- -------- ------- --------
Total Banking / Lending 479 514 602 602 607
INSURANCE
Travelers Life and Annuity 147 173 168 135 187
Primerica Financial Services 110 113 114 115 119
Personal Lines 83 79 23 94 75
-------- -------- -------- ------- --------
Total Insurance 340 365 305 344 381
INTERNATIONAL
Western Europe 65 67 71 72 88
Japan 21 23 25 18 29
Asia 81 84 92 99 144
Latin America 47 41 52 82 66
Central & Eastern Europe, Middle East and Africa 3 6 27 10 14
-------- -------- -------- ------- --------
Total Emerging Markets Consumer Banking 131 131 171 191 224
-------- -------- -------- ------- --------
Total International 217 221 267 281 341
E-CONSUMER (22) (27) (29) (33) (68)
OTHER (16) (25) (12) (22) (29)
-------- -------- -------- ------- --------
TOTAL GLOBAL CONSUMER 998 1,048 1,133 1,172 1,232
-------- -------- -------- ------- --------
GLOBAL CORPORATE AND INVESTMENT BANK:
Salomon Smith Barney 648 610 432 664 957
Global Relationship Banking 184 146 143 163 240
Emerging Markets Corporate Banking 315 286 303 257 392
Commercial Lines 189 201 255 200 240
-------- -------- -------- ------- --------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 1,336 1,243 1,133 1,284 1,829
-------- -------- -------- ------- --------
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
SSB Citi Asset Management Group and Global Retirement Services 81 85 84 79 95
Global Private Bank 55 71 70 73 80
-------- -------- -------- ------- --------
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 136 156 154 152 175
-------- -------- -------- ------- --------
INVESTMENT ACTIVITIES 89 162 194 213 634
CORPORATE / OTHER (138) (121) (145) (202) (253)
E-CITI (6) (11) (19) (14) (15)
-------- -------- -------- ------- --------
TOTAL CORPORATE / OTHER (144) (132) (164) (216) (268)
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CORE INCOME $ 2,415 $ 2,477 $ 2,450 $ 2,605 $ 3,602
====================================================================================================================================
SUPPLEMENTAL INFORMATION:
EMERGING MARKETS - CONSUMER AND CORPORATE BANKING $ 465 $ 485 $ 545 $ 490 $ 703
GLOBAL WEALTH MANAGEMENT $ 607 $ 683 $ 663 $ 685 $ 892
GLOBAL CARDS $ 334 $ 330 $ 360 $ 422 $ 385
Reclassified to conform to the current period's presentation.
<CAPTION>
3Q 2000 VS.
2Q 3Q 3Q 1999 INCREASE/
2000 2000 (DECREASE)
-------- -------- -----------------
<S> <C> <C> <C>
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America $ 139 $ 143 34%
Mortgage Banking 65 70 19%
North America Cards 308 369 23%
CitiFinancial 117 124 (8%)
-------- --------
Total Banking / Lending 629 706 17%
INSURANCE
Travelers Life and Annuity 202 179 7%
Primerica Financial Services 125 124 9%
Personal Lines 82 68 196%
-------- --------
Total Insurance 409 371 22%
INTERNATIONAL
Western Europe 75 88 24%
Japan 39 36 44%
Asia 142 142 54%
Latin America 41 32 (38%)
Central & Eastern Europe, Middle East and Africa 16 15 (44%)
-------- --------
Total Emerging Markets Consumer Banking 199 189 11%
-------- --------
Total International 313 313 17%
E-CONSUMER (46) (43) (48%)
OTHER (28) (25) (108%)
-------- --------
TOTAL GLOBAL CONSUMER 1,277 1,322 17%
-------- --------
GLOBAL CORPORATE AND INVESTMENT BANK:
Salomon Smith Barney 641 622 44%
Global Relationship Banking 261 250 75%
Emerging Markets Corporate Banking 370 401 32%
Commercial Lines 267 315 24%
-------- --------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 1,539 1,588 40%
-------- --------
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
SSB Citi Asset Management Group and Global Retirement Services 92 96 14%
Global Private Bank 79 80 14%
-------- --------
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 171 176 14%
-------- --------
INVESTMENT ACTIVITIES 234 292 51%
CORPORATE / OTHER (196) (244) (68%)
E-CITI (18) (23) (21%)
-------- --------
TOTAL CORPORATE / OTHER (214) (267) (63%)
----------------------------------------------------------------------------------------
TOTAL CORE INCOME $ 3,007 $ 3,111 27%
========================================================================================
SUPPLEMENTAL INFORMATION:
EMERGING MARKETS - CONSUMER AND CORPORATE BANKING $ 632 $ 641 18%
GLOBAL WEALTH MANAGEMENT $ 782 $ 758 14%
GLOBAL CARDS $ 430 $ 476 32%
Reclassified to conform to the current period's presentation.
<CAPTION>
YTD YTD YTD 3Q 2000 VS.
3Q 3Q YTD 3Q 1999 INCREASE/
1999 2000 (DECREASE)
-------- -------- ------------------------
<S> <C> <C> <C>
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America $ 283 $ 420 48%
Mortgage Banking 170 196 15%
North America Cards 858 973 13%
CitiFinancial 284 353 24%
-------- --------
Total Banking / Lending 1,595 1,942 22%
INSURANCE
Travelers Life and Annuity 488 568 16%
Primerica Financial Services 337 368 9%
Personal Lines 185 225 22%
-------- --------
Total Insurance 1,010 1,161 15%
INTERNATIONAL
Western Europe 203 251 24%
Japan 69 104 51%
Asia 257 428 67%
Latin America 140 139 (1%)
Central & Eastern Europe, Middle East and Africa 36 45 25%
-------- --------
Total Emerging Markets Consumer Banking 433 612 41%
-------- --------
Total International 705 967 37%
E-CONSUMER (78) (157) (101%)
OTHER (53) (82) (55%)
-------- --------
TOTAL GLOBAL CONSUMER 3,179 3,831 21%
-------- --------
GLOBAL CORPORATE AND INVESTMENT BANK:
Salomon Smith Barney 1,690 2,220 31%
Global Relationship Banking 473 751 59%
Emerging Markets Corporate Banking 904 1,163 29%
Commercial Lines 645 822 27%
-------- --------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 3,712 4,956 34%
-------- --------
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
SSB Citi Asset Management Group and Global Retirement Services 250 283 13%
Global Private Bank 196 239 22%
-------- --------
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 446 522 17%
-------- --------
INVESTMENT ACTIVITIES 445 1,160 161%
CORPORATE / OTHER (404) (693) (72%)
E-CITI (36) (56) (56%)
-------- --------
TOTAL CORPORATE / OTHER (440) (749) (70%)
----------------------------------------------------------------------------------------
TOTAL CORE INCOME $ 7,342 $ 9,720 32%
========================================================================================
SUPPLEMENTAL INFORMATION:
EMERGING MARKETS - CONSUMER AND CORPORATE BANKING $ 1,495 $ 1,976 32%
GLOBAL WEALTH MANAGEMENT $ 1,953 $ 2,432 25%
GLOBAL CARDS $ 1,024 $ 1,291 26%
</TABLE>
Reclassified to conform to the current period's presentation.
Page 3
<PAGE>
GLOBAL CONSUMER - BANKING/LENDING
CITIBANKING NORTH AMERICA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q
1999 1999 1999 1999 2000 2000
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 506 $ 516 $ 526 $ 556 $ 575 $ 569
Adjusted Operating Expenses 358 323 330 343 334 329
Provision for Loan Losses 23 15 11 15 9 7
------- ------- ------- ------- ------- -------
Core Income Before Taxes 125 178 185 198 232 233
Income Taxes 53 74 78 83 94 94
------- ------- ------- ------- ------- -------
Core Income $ 72 $ 104 $ 107 $ 115 $ 138 $ 139
======= ======= ======= ======= ======= =======
Average Assets (in billions of dollars) $ 10 $ 9 $ 9 $ 9 $ 9 $ 9
======= ======= ======= ======= ======= =======
Return on Assets 2.92% 4.63% 4.72% 5.07% 6.17% 6.21%
======= ======= ======= ======= ======= =======
Average Loans (in billions of dollars) $ 7.5 $ 7.5 $ 7.3 $ 7.1 $ 7.0 $ 7.0
Average Customer Deposits (in billions of dollars) $ 41.6 $ 42.2 $ 42.2 $ 42.4 $ 43.5 $ 44.3
EOP Accounts (in millions) 5.9 6.0 6.2 6.3 6.3 6.4
Non-Interest Revenue as % of Total Revenues 26.5% 26.7% 25.3% 26.0% 27.4% 26.5%
Net Credit Loss Ratio 1.31% 1.23% 1.06% 1.27% 1.00% 0.88%
Loans 90+Days Past Due:
In millions of dollars $ 103 $ 92 $ 64 $ 55 $ 48 $ 33
% 1.38% 1.24% 0.90% 0.78% 0.68% 0.47%
Proprietary Mutual Funds / UIT $ 186 $ 180 $ 126 $ 232 $ 373 $ 124
Proprietary Money Market Funds 441 394 470 584 1,015 679
------- ------- ------- ------- ------- -------
Total Proprietary Funds 627 574 596 816 1,388 803
Third Party Funds 659 715 540 608 947 599
------- ------- ------- ------- ------- -------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $1,286 $1,289 $1,136 $1,424 $2,335 $1,402
======= ======= ======= ======= ======= =======
Variable Annuity Premiums & Deposits (in millions of dollars) $ 127 $ 210 $ 169 $ 233 $ 302 $ 379
Branches 380 372 373 371 371 367
ATM-only locations 69 53 54 52 54 60
Proprietary ATMs 2,163 2,063 2,050 2,050 2,050 2,047
Reclassified to conform to the current period's presentation.
<CAPTION>
3Q 2000 VS. YTD YTD
3Q 3Q 1999 INCREASE/ 3Q 3Q
2000 (DECREASE) 1999 2000
------- ----------------- ------- -------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 572 9% $1,548 $1,716
Adjusted Operating Expenses 325 (2%) 1,011 988
Provision for Loan Losses 7 (36%) 49 23
------- ----------------- ------- -------
Core Income Before Taxes 240 30% 488 705
Income Taxes 97 24% 205 285
------- ----------------- ------- -------
Core Income $ 143 34% $ 283 $ 420
======= ================= ======= =======
Average Assets (in billions of dollars) $ 9 -- $ 9 $ 9
======= ================= ======= =======
Return on Assets 6.32% 4.20% 6.23%
======= ================= ======= =======
Average Loans (in billions of dollars) $ 7.0 (4%) $ 7.4 $ 7.0
Average Customer Deposits (in billions of dollars) $ 44.8 6% $ 42.0 $ 44.2
EOP Accounts (in millions) 6.5 5%
Non-Interest Revenue as % of Total Revenues 26.5% 26.2% 26.8%
Net Credit Loss Ratio 0.86%
Loans 90+Days Past Due:
In millions of dollars $ 33 (48%)
% 0.46%
Proprietary Mutual Funds / UIT $ 280 122% $ 492 $ 777
Proprietary Money Market Funds 748 59% 1,305 2,442
------- ----------------- ------- -------
Total Proprietary Funds 1,028 72% 1,797 3,219
Third Party Funds 426 (21%) 1,914 1,972
------- ----------------- ------- -------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $1,454 28% $3,711 $5,191
======= ================= ======= =======
Variable Annuity Premiums & Deposits (in millions of dollars) $ 385 128% $ 506 $1,066
Branches 367 (2%)
ATM-only locations 60 11%
Proprietary ATMs 2,047 0%
Reclassified to conform to the current period's presentation.
<CAPTION>
YTD 3Q 2000 VS.
YTD 3Q 1999 INCREASE/
(DECREASE)
---------------------
<S> <C>
Total Revenues, Net of Interest Expense 11%
Adjusted Operating Expenses (2%)
Provision for Loan Losses (53%)
Core Income Before Taxes 44%
Income Taxes 39%
Core Income 48%
Average Assets (in billions of dollars) --
Return on Assets
Average Loans (in billions of dollars) (5%)
Average Customer Deposits (in billions of dollars) 5%
EOP Accounts (in millions)
Non-Interest Revenue as % of Total Revenues
Net Credit Loss Ratio
Loans 90+Days Past Due:
In millions of dollars
%
Proprietary Mutual Funds / UIT 58%
Proprietary Money Market Funds 87%
Total Proprietary Funds 79%
Third Party Funds 3%
Mutual Fund / UIT Sales at NAV (in millions of dollars) 40%
Variable Annuity Premiums & Deposits (in millions of dollars) 111%
Branches
ATM-only locations
Proprietary ATMs
</TABLE>
Reclassified to conform to the current period's presentation.
Page 4
<PAGE>
GLOBAL CONSUMER - BANKING/LENDING
MORTGAGE BANKING (1)
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1999 1999 1999 1999 2000 2000 2000
------- ------- ------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 169 $ 183 $ 199 $ 196 $ 204 $ 206 $ 203
Adjusted Operating Expenses 61 84 93 91 92 95 85
Provision for Loan Losses 3 5 2 7 5 (4) (3)
------- ------- ------- ------- ------- ------- -------
Core Income Before Taxes and Minority Interest 105 94 104 98 107 115 121
Income Taxes 41 37 41 38 41 44 45
Minority Interest, Net of Tax 5 5 4 5 5 6 6
======= ======= ======= ======= ======= ======= =======
Core Income $ 59 $ 52 $ 59 $ 55 $ 61 $ 65 $ 70
======= ======= ======= ======= ======= ======= =======
Average Assets (in billions of dollars) $ 28 $ 29 $ 29 $ 31 $ 33 $ 35 $ 40
======= ======= ======= ======= ======= ======= =======
Return on Assets 0.85% 0.72% 0.81% 0.70% 0.74% 0.75% 0.70%
======= ======= ======= ======= ======= ======= =======
EOP ACCOUNTS OWNED AND SERVICED:
Student Loans 2.2 2.3 2.5 2.7 2.8 3.0 3.3
Mortgages 0.5 0.6 0.6 0.6 0.6 0.8 0.8
Consumer Finance 0.1 0.1 0.1 0.1 0.1 0.1 0.1
------- ------- ------- ------- ------- ------- -------
Total 2.8 3.0 3.2 3.4 3.5 3.9 4.2
======= ======= ======= ======= ======= ======= =======
TOTAL OWNED AND SERVICED AVERAGE LOANS
(IN BILLIONS OF DOLLARS):
Mortgages (2) $ 16.4 $ 17.0 $ 17.2 $ 17.6 $ 18.9 $ 20.3 $ 22.3
Student Loans 9.2 9.2 9.3 10.6 11.6 12.3 14.2
Consumer Finance 1.0 1.1 0.6 0.4 0.4 0.5 0.7
------- ------- ------- ------- ------- ------- -------
Average Loans - On Balance Sheet 26.6 27.3 27.1 28.6 30.9 33.1 37.2
Other Serviced Loans 40.5 46.4 51.0 52.5 54.1 59.9 61.8
------- ------- ------- ------- ------- ------- -------
Total $ 67.1 $ 73.7 $ 78.1 $ 81.1 $ 85.0 $ 93.0 $ 99.0
======= ======= ======= ======= ======= ======= =======
Mortgage Originations (in billions of dollars) $ 3.8 $ 4.9 $ 4.7 $ 4.8 $ 3.5 $ 4.9 $ 5.4
Student Loan Originations $ 0.7 $ 0.3 $ 0.7 $ 0.6 $ 1.0 $ 0.7 $ 1.4
Consumer Finance Originations $ 0.2 $ 0.3 $ 0.2 $ 0.2 $ 0.2 $ 0.3 $ 0.3
Net Credit Loss Ratio 0.20% 0.17% 0.12% 0.15% 0.14% 0.05% 0.06%
Loans 90+ Days Past Due:
In millions of dollars $ 610 $ 575 $ 629 $ 696 $ 719 $ 709 $ 709
% 2.29% 2.09% 2.28% 2.31% 2.29% 1.98% 1.82%
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
-------------- ------------- --------- ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 2% $ 551 $ 613 11%
Adjusted Operating Expenses (9%) 238 272 14%
Provision for Loan Losses (250%) 10 (2) (120%)
------- ------
Core Income Before Taxes and Minority Interest 16% 303 343 13%
Income Taxes 10% 119 130 9%
Minority Interest, Net of Tax 50% 14 17 21%
------- -------
Core Income 19% $ 170 $ 196 15%
======= =======
Average Assets (in billions of dollars) 38% $ 29 $ 36 24%
======= =======
Return on Assets 0.78% 0.73%
======= =======
EOP ACCOUNTS OWNED AND SERVICED:
Student Loans 32%
Mortgages 33%
Consumer Finance --
Total 31%
TOTAL OWNED AND SERVICED AVERAGE LOANS (IN BILLIONS OF DOLLARS):
Mortgages (2) 30% $ 16.9 $ 20.5 21%
Student Loans 53% 9.2 12.7 38%
Consumer Finance 17% 0.9 0.5 (44%)
--------- ---------
Average Loans - On Balance Sheet 37% 27.0 33.7 25%
Other Serviced Loans 21% 46.0 58.6 27%
========= =========
Total 27% $ 73.0 $ 92.3 26%
========= =========
Mortgage Originations (in billions of dollars) 15% $ 13.4 $ 13.8 3%
Student Loan Originations 100% $ 1.7 $ 3.1 82%
Consumer Finance Originations 50% $ 0.7 $ 0.8 --
Net Credit Loss Ratio
Loans 90+ Days Past Due:
In millions of dollars 13%
</TABLE>
(1) Includes Student Loans.
(2) Includes loans held for sale.
Reclassified to conform to the current period's presentation.
Page 5
<PAGE>
GLOBAL CONSUMER - BANKING/LENDING
NORTH AMERICA CARDS (1)
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1999 1999 1999 1999 2000 2000 2000
--------- --------- --------- --------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Adjusted Revenues, Net of Interest Expense $ 1,961 $ 1,981 $ 1,971 $ 2,042 $ 1,996 $ 1,969 $ 2,059
Adjusted Operating Expenses 710 713 697 727 728 720 742
Adjusted Provision for Loan Losses (2) 811 825 797 801 799 758 728
--------- --------- --------- --------- --------- --------- ---------
Core Income Before Taxes 440 443 477 514 469 491 589
Income Taxes 163 163 176 190 173 183 220
--------- --------- --------- --------- --------- --------- ---------
Core Income $ 277 $ 280 $ 301 $ 324 $ 296 $ 308 $ 369
========= ========= ========= ========= ========= ========= =========
Managed Average Assets (in billions of dollars) $ 73 $ 75 $ 76 $ 76 $ 78 $ 81 $ 87
========= ========= ========= ========= ========= ========= =========
Return on Managed Assets 1.54% 1.50% 1.57% 1.69% 1.53% 1.53% 1.69%
========= ========= ========= ========= ========= ========= =========
N.A. BANKCARDS DATA :
(in billions of dollars)
Net Interest Revenue (in millions of dollars)(3) $ 1,513 $ 1,466 $ 1,482 $ 1,491 $ 1,472 $ 1,405 $ 1,482
% of Average Managed Loans 9.06% 8.46% 8.39% 8.39% 8.14% 7.47% 7.26%
Risk Adjusted Revenue (in millions of dollars)(4) $ 1,083 $ 1,087 $ 1,109 $ 1,172 $ 1,112 $ 1,134 $ 1,254
% of Average Managed Loans 6.48% 6.27% 6.28% 6.59% 6.15% 6.03% 6.14%
Adjusted Operating Expenses as % of Average
Managed Loans 3.82% 3.71% 3.55% 3.73% 3.62% 3.47% 3.30%
End of Period Managed Receivables $ 69.8 $ 70.7 $ 71.0 $ 74.7 $ 73.7 $ 79.5 $ 83.7
Total EOP Open Accounts (in millions) 41.8 41.4 41.0 41.1 41.3 42.7 43.9
Total Sales $ 37.0 $ 40.9 $ 41.2 $ 44.2 $ 42.5 $ 48.7 $ 48.0
END OF PERIOD LOANS:
On Balance Sheet $ 19.7 $ 20.1 $ 19.5 $ 23.2 $ 23.4 $ 29.0 $ 32.2
Securitized 46.7 47.4 48.5 49.0 48.0 44.8 45.8
Held for Sale 2.9 2.8 2.5 2.0 2.0 5.0 5.0
--------- --------- --------- --------- --------- --------- ---------
Total $ 69.3 $ 70.3 $ 70.5 $ 74.2 $ 73.4 $ 78.8 $ 83.0
========= ========= ========= ========= ========= ========= =========
AVERAGE LOANS:
On Balance Sheet $ 20.5 $ 20.0 $ 19.7 $ 19.9 $ 22.5 $ 26.8 $ 32.1
Securitized 44.3 46.7 47.9 48.6 48.2 45.8 44.1
Held for Sale 2.9 2.8 2.5 2.0 2.0 3.0 5.0
--------- --------- --------- --------- --------- --------- ---------
Total $ 67.7 $ 69.5 $ 70.1 $ 70.5 $ 72.7 $ 75.6 $ 81.2
========= ========= ========= ========= ========= ========= =========
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
On Balance Sheet $ 199 $ 236 $ 225 $ 229 $ 268 $ 276 $ 287
Securitized 556 541 525 537 499 441 386
Held for Sale 32 29 27 22 20 28 41
--------- --------- --------- --------- --------- --------- ---------
Total $ 787 $ 806 $ 777 $ 788 $ 787 $ 745 $ 714
========= ========= ========= ========= ========= ========= =========
Coincident Net Credit Loss Ratio 4.71% 4.65% 4.40% 4.43% 4.35% 3.96% 3.50%
12 Month Lagged Net Credit Loss Ratio (5) 5.32% 5.11% 4.76% 4.61% 4.36% 4.20% 3.98%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 1,011 $ 958 $ 1,000 $ 1,066 $ 1,063 $ 929 $ 1,022
% 1.46% 1.36% 1.42% 1.44% 1.45% 1.18% 1.23%
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
---------------- -------- --------- ---------------------
<S> <C> <C> <C> <C>
Adjusted Revenues, Net of Interest Expense 4% $5,913 $6,024 2%
Adjusted Operating Expenses 6% 2,120 2,190 3%
Adjusted Provision for Loan Losses (2) (9%) 2,433 2,285 (6%)
------ ------
Core Income Before Taxes 23% 1,360 1,549 14%
Income Taxes 25% 502 576 15%
------ ------
Core Income 23% $ 858 $ 973 13%
====== ======
Managed Average Assets (in billions of dollars) 14% $ 75 $ 82 9%
====== ======
Return on Managed Assets 1.53% 1.59%
====== ======
N.A. BANKCARDS DATA :
(in billions of dollars)
Net Interest Revenue (in millions of dollars) (3) -- $4,461 $4,359 (2%)
% of Average Managed Loans 8.63% 7.61%
Risk Adjusted Revenue (in millions of dollars) (4) 13% $3,279 $3,500 7%
% of Average Managed Loans 6.34% 6.11%
Adjusted Operating Expenses as % of Average Managed Loans 3.69% 3.46%
End of Period Managed Receivables 18%
Total EOP Open Accounts (in millions) 7%
Total Sales 17% $119.1 $139.2 17%
END OF PERIOD LOANS:
On Balance Sheet 65%
Securitized (6%)
Held for Sale 100%
Total 18%
AVERAGE LOANS:
On Balance Sheet 63% $ 20.1 $ 27.2 35%
Securitized (8%) 46.3 46.0 (1%)
Held for Sale 100% 2.7 3.3 22%
====== ======
Total 16% $ 69.1 $ 76.5 11%
====== ======
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
On Balance Sheet 28% $ 660 $ 831 26%
Securitized (26%) 1,622 1,326 (18%)
Held for Sale 52% 88 89 1%
------ ------
Total (8%) $2,370 $2,246 (5%)
====== ======
Coincident Net Credit Loss Ratio
12 Month Lagged Net Credit Loss Ratio (5)
LOANS 90+ DAYS PAST DUE:
In millions of dollars 2%
</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 Revenue is adjusted revenues less net credit losses.
(5) Adjusted for acquisitions.
Reclassified to conform to the current period's presentation.
Page 6
<PAGE>
GLOBAL CONSUMER - BANKING/LENDING
CITIFINANCIAL
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1999 1999 1999 1999 2000 2000 2000
---------- ---------- ---------- ----------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense* $ 361 $ 396 $ 421 $ 441 $ 462 $ 474 $ 491
Adjusted Operating Expenses 144 154 133 186 188 187 186
Provision for Benefits, Claims, and
Credit Losses 104 117 77 87 97 102 110
---------- ---------- ---------- ---------- ---------- ---------- ---------
Core Income Before Taxes 113 125 211 168 177 185 195
Income Taxes 42 47 76 60 65 68 71
========== ========== ========== ========== ========== ========== =========
Core Income $ 71 $ 78 $ 135 $ 108 $ 112 $ 117 $ 124
========== ========== ========== ========== ========== ========== =========
Average Assets (in billions of dollars) $ 14 $ 15 $ 16 $ 18 $ 18 $ 19 $ 20
========== ========== ========== ========== ========== ========== =========
Return on Assets 2.06% 2.09% 3.35% 2.38% 2.50% 2.48% 2.47%
========== ========== ========== ========== ========== ========== =========
NET RECEIVABLES:
Real estate-secured loans (1) $ 7,179.5 $ 7,699.2 $ 8,439.6 $ 9,031.6 $ 9,354.6 $ 9,806.0 $10,236.7
Personal loans (2) 4,647.2 4,886.2 5,102.5 5,319.7 5,408.3 5,626.6 5,828.4
Sales finance and other 1,033.8 1,032.1 1,069.7 1,152.0 1,232.5 1,264.0 1,317.3
---------- ---------- ---------- ---------- ---------- ---------- ---------
Consumer finance receivables,
net of unearned finance charges 12,860.5 13,617.5 14,611.8 15,503.3 15,995.4 16,696.6 17,382.4
Accrued interest receivable 99.3 106.5 121.7 133.2 126.5 134.7 145.1
Allowance for credit losses (388.7) (436.4) (424.1) (407.8) (423.4) (423.4) (423.2)
---------- ---------- ---------- ---------- ---------- ---------- ---------
Consumer finance receivables, net $ 12,571.1 $ 13,287.6 $ 14,309.4 $ 15,228.7 $ 15,698.5 $ 16,407.9 $17,104.3
========== ========== ========== ========== ========== ========== =========
Number of offices 1,143 1,177 1,173 1,174 1,182 1,212 1,240
Average yield (3) 14.38% 14.48% 14.58% 14.35% 14.09% 14.05% 14.00%
Average net interest margin (3) 8.84% 8.99% 9.01% 8.66% 8.37% 8.16% 8.01%
Net credit loss ratio (3) 2.38% 2.14% 2.00% 2.19% 1.92% 1.93% 1.91%
Reserves as % of net receivables 3.02% 3.20% 2.90% 2.63% 2.65% 2.54% 2.43%
Loans 90+ Days Past Due:
In millions of dollars (3) 183 172 186 203 216 229 239
% 1.42% 1.26% 1.27% 1.31% 1.33% 1.32% 1.29%
(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 $ 4,415.7 $ 4,695.7
(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 $ 315.7 $ 311.6
(3) Includes loans held for sale
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
----------------- --------- -------- ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense* 17% $1,178 $1,427 21%
Adjusted Operating Expenses 40% 431 $ 561 30%
Provision for Benefits, Claims, and Credit Losses 43% 298 $ 309 4%
------ ------
Core Income Before Taxes (8%) 449 557 24%
Income Taxes (7%) 165 204 24%
------ ------
Core Income (8%) $ 284 $ 353 24%
====== =======
Average Assets (in billions of dollars) 25% $ 15 $ 19 27%
====== =======
Return on Assets 2.53% 2.48%
====== =======
NET RECEIVABLES:
Real estate-secured loans (1) 21%
Personal loans (2) 14%
Sales finance and other 23%
Consumer finance receivables,
net of unearned finance charges 19%
Accrued interest receivable 19%
Allowance for credit losses --
Consumer finance receivables, net 20%
Number of offices 6%
Average yield (3) 14.48% 14.05%
Average net interest margin (3) 8.95% 8.17%
Net credit loss ratio (3) 2.17% 1.92%
Reserves as % of net receivables
Loans 90+ Days Past Due:
In millions of dollars (3) 28%
%
(1) Includes fully secured $.M.A.R.T. receivables,
as follows: 37%
(2) Includes $.A.F.E. and partially secured $.M.A.R.T
receivables, as follows: (6%)
(3) Includes loans held for sale
</TABLE>
* Excludes realized gains on investments
Page 7
<PAGE>
GLOBAL CONSUMER - INSURANCE
TRAVELERS LIFE AND ANNUITY
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q
1999 1999 1999 1999 2000
---------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 771 $ 867 $ 869 $ 887 $ 1,010
CORE INCOME $ 147 $ 173 $ 168 $ 135 $ 187
PRE-TAX CONTRIBUTION BY SOURCE:
Individual annuities $ 88.4 $ 105.5 $ 93.0 $ 86.1 $ 107.8
Group annuities 59.9 77.3 77.1 65.2 92.1
Life and long term care insurance 39.8 50.5 43.9 39.8 59.4
Other (includes run-off and return on excess capital) 33.0 28.8 39.3 17.4 20.3
--------- --------- --------- --------- ---------
Total $ 221.1 $ 262.1 $ 253.3 $ 208.5 $ 279.6
========= ========= ========= ========= =========
INDIVIDUAL ANNUITIES:
Net written premiums & deposits:
Fixed $ 194.2 $ 249.7 $ 271.0 $ 292.6 $ 293.5
Variable 975.7 1,048.3 1,089.8 1,151.3 1,245.0
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
========= ========= ========= ========= =========
Policyholder account balances & benefit reserves: (1)
Fixed $ 7,839.3 $ 7,874.2 $ 7,958.5 $ 7,993.6 $ 7,911.3
Variable 14,172.9 15,770.8 15,897.0 19,310.6 21,072.7
Individual Payout 599.6 604.4 611.8 617.3 619.6
--------- --------- --------- --------- ---------
Total $22,611.8 $24,249.4 $24,467.3 $27,921.5 $29,603.6
========= ========= ========= ========= =========
GROUP ANNUITIES:
Net written premiums & deposits (2) $ 1,859.6 $ 1,609.2 $ 1,212.3 $ 937.5 $ 1,456.9
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
Payout group annuities 4,175.1 4,236.9 4,284.9 4,362.7 4,514.9
--------- --------- --------- --------- ---------
Total $13,941.5 $15,219.8 $15,202.6 $15,116.5 $15,601.9
========= ========= ========= ========= =========
INDIVIDUAL LIFE INSURANCE:
Net written premiums and deposits:
Direct periodic premiums and deposits $ 84.5 $ 86.7 $ 88.3 $ 149.2 $ 116.7
Single premium deposits 16.2 20.8 17.2 30.0 18.3
Reinsurance (16.8) (17.8) (17.9) (18.5) (19.1)
--------- --------- --------- --------- ---------
Total $ 83.9 $ 89.7 $ 87.6 $ 160.7 $ 115.9
========= ========= ========= ========= =========
Policyholder account balances & benefit reserves $ 2,468.3 $ 2,511.0 $ 2,535.3 $ 2,682.0 $ 2,755.3
Life insurance in force (in billions, face amt.) $ 56.6 $ 57.7 $ 58.4 $ 60.6 $ 61.7
Life insurance issued (in billions, face amt.) $ 2.5 $ 2.4 $ 2.0 $ 3.8 $ 2.7
ALL BUSINESSES:
Net investment income (pretax) $ 525.4 $ 578.8 $ 593.2 $ 579.1 $ 594.9
Interest credited to contractholders $ 225.7 $ 230.9 $ 239.0 $ 241.4 $ 244.7
STATUTORY DATA:
TRAVELERS INSURANCE COMPANY
Statutory capital and surplus $ 4,955.9 $ 4,976.9 $ 5,010.2 $ 5,027.3 $ 5,011.2
Surplus to liabilities ratio 19.8% 19.5% 20.2% 21.2% 20.5%
<CAPTION>
3Q 2000 VS.
2Q 3Q 3Q 1999 INCREASE/
2000 2000 (DECREASE)
----------- ------------ -----------------
<S> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 983 $ 899 3%
CORE INCOME $ 202 $ 179 7%
PRE-TAX CONTRIBUTION BY SOURCE:
Individual annuities $ 117.9 $ 117.8 27%
Group annuities 114.6 90.7 18%
Life and long term care insurance 55.9 40.3 (8%)
Other (includes run-off and return on excess capital) 13.0 17.4 (56%)
----------- -----------
Total $ 301.4 $ 266.2 5%
=========== ===========
INDIVIDUAL ANNUITIES:
Net written premiums & deposits:
Fixed $ 302.6 $ 320.3 18%
Variable 1,258.5 1,273.6 17%
Individual Payout 21.7 20.6 (1%)
----------- -----------
Total $ 1,582.8 $ 1,614.5 17%
=========== ===========
Policyholder account balances & benefit reserves: (1)
Fixed $ 7,904.0 $ 7,939.8 --
Variable 21,013.2 21,678.1 36%
Individual Payout 626.2 630.0 3%
----------- -----------
Total $ 29,543.4 $ 30,247.9 24%
=========== ===========
GROUP ANNUITIES:
Net written premiums & deposits (2) $ 1,439.1 $ 1,481.8 22%
Policyholder account balances & benefit reserves: (1)
GICs and other investment contracts $ 11,204.2 $ 11,966.9 10%
Payout group annuities 4,624.0 4,713.8 10%
----------- -----------
Total $ 15,828.2 $ 16,680.7 10%
=========== ===========
INDIVIDUAL LIFE INSURANCE:
Net written premiums and deposits:
Direct periodic premiums and deposits $ 113.4 $ 135.8 54%
Single premium deposits 21.0 22.3 30%
Reinsurance (20.3) (21.4) 20%
----------- -----------
Total $ 114.1 $ 136.7 56%
=========== ===========
Policyholder account balances & benefit reserves $ 2,801.9 $ 2,911.0 15%
Life insurance in force (in billions, face amt.) $ 63.2 $ 65.2 12%
Life insurance issued (in billions, face amt.) $ 3.0 $ 3.1 55%
ALL BUSINESSES:
Net investment income (pretax) $ 639.1 $ 609.1 3%
Interest credited to contractholders $ 248.7 $ 266.7 12%
STATUTORY DATA:
TRAVELERS INSURANCE COMPANY
Statutory capital and surplus $ 4,977.4 $ 5,355.1 7%
Surplus to liabilities ratio 20.3% 21.3%
<CAPTION>
YTD YTD YTD 3Q 2000 VS.
3Q 3Q YTD 3Q 1999 INCREASE/
1999 2000 (DECREASE)
----------- ---------- ----------------------
<S> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 2,507 $ 2,892 15%
CORE INCOME $ 488 $ 568 16%
PRE-TAX CONTRIBUTION BY SOURCE:
Individual annuities $ 286.9 $ 343.5 20%
Group annuities 214.3 297.4 39%
Life and long term care insurance 134.2 155.6 16%
Other (includes run-off and return on excess capital) 101.1 50.7 (50%)
---------- ----------
Total $ 736.5 $ 847.2 15%
========== ==========
INDIVIDUAL ANNUITIES:
Net written premiums & deposits:
Fixed $ 714.9 $ 916.4 28%
Variable 3,113.8 3,777.1 21%
Individual Payout 57.4 62.8 9%
---------- ----------
Total $ 3,886.1 $ 4,756.3 22%
========== ==========
Policyholder account balances & benefit reserves: (1)
Fixed
Variable
Individual Payout
Total
GROUP ANNUITIES:
Net written premiums & deposits (2) $ 4,681.1 $ 4,377.8 (6%)
Policyholder account balances & benefit reserves: (1)
GICs and other investment contracts
Payout group annuities
Total
INDIVIDUAL LIFE INSURANCE:
Net written premiums and deposits:
Direct periodic premiums and deposits $ 259.5 $ 365.9 41%
Single premium deposits 54.2 61.6 14%
Reinsurance (52.5) (60.8) 16%
---------- ----------
Total $ 261.2 $ 366.7 40%
========== ==========
Policyholder account balances & benefit reserves
Life insurance in force (in billions, face amt.)
Life insurance issued (in billions, face amt.) $ 6.9 $ 8.8 28%
ALL BUSINESSES:
Net investment income (pretax) $ 1,697.4 $ 1,843.1 9%
Interest credited to contractholders $ 695.6 $ 760.1 9%
STATUTORY DATA:
TRAVELERS INSURANCE COMPANY
Statutory capital and surplus
Surplus to liabilities ratio
</TABLE>
(1) Includes general account, separate accounts and managed funds.
(2) Excludes deposits of $24.0 and $45.0 in the first and second quarters
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
PRIMERICA FINANCIAL SERVICES
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q
1999 1999 1999 1999 2000
---------- ---------- ---------- ---------- -------
<S> <C> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 432 $ 443 $ 444 $ 456 $ 472
CORE INCOME
Life insurance $ 86 $ 89 $ 88 $ 84 $ 87
Other financial products 24 24 26 31 32
---------- ---------- ---------- ---------- -------
Total core income $ 110 $ 113 $ 114 $ 115 $ 119
========== ========== ========== ========== =======
LIFE INSURANCE Face value (in billions) of:
Life insurance issued $ 13.6 $ 15.5 $ 12.4 $ 14.7 $ 15.0
Life insurance in force $ 386.3 $ 391.7 $ 392.8 $ 394.9 $ 397.8
Annualized issued premiums $ 42.4 $ 48.4 $ 39.3 $ 43.4 $ 44.1
Direct premiums $ 315.2 $ 321.0 $ 320.5 $ 322.9 $ 324.5
Earned premiums $ 267.1 $ 268.6 $ 264.8 $ 270.8 $ 270.6
OTHER PRODUCTS Mutual fund sales at NAV:
Proprietary $ 407.7 $ 453.1 $ 393.7 $ 389.3 $ 465.0
Other funds 233.5 277.3 257.6 307.6 497.1
---------- ---------- ---------- ---------- --------
Total U.S. mutual fund sales 641.2 730.4 651.3 696.9 962.1
Mutual fund sales - Canada 143.2 76.2 86.2 98.2 228.8
---------- ---------- ---------- ---------- --------
Total mutual fund sales $ 784.4 $ 806.6 $ 737.5 $ 795.1 $1,190.9
========= ========== ========== ========== ========
Cash advanced on $.M.A.R.T. and $.A.F.E. loans (1) $ 419.2 $ 492.7 $ 488.3 $ 519.8 $ 492.0
Variable annuity net written premiums and deposits $ 223.4 $ 278.6 $ 247.6 $ 240.5 $ 249.9
AGENTS LICENSED FOR:
Life insurance 79,738 79,251 77,259 79,809 79,818
Mutual funds 27,129 27,053 26,873 24,566 25,570
$.M.A.R.T. / $.A.F.E. loans 129,556 118,762 108,377 95,816 93,055
Variable annuities 13,816 14,497 16,042 16,424 16,453
Long term care -- -- 3,419 6,540 8,010
Home & auto insurance 15,102 14,734 15,425 14,284 13,238
Financial Needs Analyses submitted 142,451 122,958 111,136 113,748 110,900
<CAPTION>
3Q 2000 VS.
2Q 3Q 3Q 1999 INCREASE/
2000 2000 (DECREASE)
---------- ---------- -----------------
<S> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 479 $ 474 7%
CORE INCOME
Life insurance $ 93 $ 93 6%
Other financial products 32 31 19%
---------- ----------
Total core income $ 125 $ 124 9%
========== ==========
LIFE INSURANCE Face value (in billions) of:
Life insurance issued $ 18.5 $ 16.8 35%
Life insurance in force $ 403.6 $ 408.4 4%
Annualized issued premiums $ 54.1 $ 49.5 26%
Direct premiums $ 330.9 $ 334.3 4%
Earned premiums $ 277.4 $ 275.0 4%
OTHER PRODUCTS Mutual fund sales at NAV:
Proprietary $ 468.7 $ 448.5 14%
Other funds 552.5 397.8 54%
---------- ----------
Total U.S. mutual fund sales 1,021.2 846.3 30%
Mutual fund sales - Canada 128.1 117.4 36%
---------- ----------
Total mutual fund sales $ 1,149.3 $ 963.7 31%
========== ==========
Cash advanced on $.M.A.R.T. and $.A.F.E. loans (1) $ 475.6 $ 457.2 (6%)
Variable annuity net written premiums and deposits $ 248.0 $ 270.6 9%
AGENTS LICENSED FOR:
Life insurance 82,288 85,183 10%
Mutual funds 25,968 27,300 2%
$.M.A.R.T./$.A.F.E. loans 99,481 105,640 (3%)
Variable annuities 16,692 17,281 8%
Long term care 7,785 9,612 181%
Home & auto insurance 13,038 12,194 (21%)
Financial Needs Analyses submitted 109,451 108,838 (2%)
<CAPTION>
YTD YTD YTD 3Q 2000 VS.
3Q 3Q YTD 3Q 1999 INCREASE/
1999 2000 (DECREASE)
---------- ---------- ---------------------
<S> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 1,319 $ 1,425 8%
CORE INCOME
Life insurance $ 263 $ 273 4%
Other financial products 74 95 28%
---------- ----------
Total core income $ 337 $ 368 9%
========== ==========
LIFE INSURANCE Face value (in billions) of:
Life insurance issued $ 41.5 $ 50.3 21%
Life insurance in force $ 392.8 $ 408.4 4%
Annualized issued premiums $ 130.1 $ 147.7 14%
Direct premiums $ 956.7 $ 989.7 3%
Earned premiums $ 800.5 $ 823.0 3%
OTHER PRODUCTS Mutual fund sales at NAV:
Proprietary $ 1,254.5 $ 1,382.2 10%
Other funds 768.4 1,447.4 88%
---------- ----------
Total U.S. mutual fund sales 2,022.9 2,829.6 40%
Mutual fund sales - Canada 305.6 474.3 55%
---------- ----------
Total mutual fund sales $ 2,328.5 $ 3,303.9 42%
========== ==========
Cash advanced on $.M.A.R.T. and $.A.F.E. loans (1) $ 1,400.2 $ 1,424.8 2%
Variable annuity net written premiums and deposits $ 749.6 $ 768.5 3%
AGENTS LICENSED FOR:
Life insurance
Mutual funds
$.M.A.R.T. / $.A.F.E. loans
Variable annuities
Long term care
Home & auto insurance
Financial Needs Analyses submitted 376,545 329,189 (13%)
</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.
* Excludes realized gains on investments
PAGE 9
<PAGE>
GLOBAL CONSUMER - INSURANCE
TRAVELERS PROPERTY CASUALTY - PERSONAL LINES
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
-------- -------- -------- ---------
<S> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 983 $ 1,005 $ 1,018 $ 1,037
CORE INCOME (1) $ 83 $ 79 $ 23 $ 94
NET WRITTEN PREMIUMS BY PRODUCT LINE: (2)
Auto $ 619.6 $ 597.0 $ 581.1 $ 571.0
Homeowners and other 363.8 353.9 370.6 347.8
-------- -------- -------- --------
Total net written premiums (A) $ 983.4 $ 950.9 $ 951.7 $ 918.8
======== ======== ======== ========
NET WRITTEN PREMIUMS BY DISTRIBUTION CHANNEL: (2)
Independent agents $ 791.6 $ 750.6 $ 743.0 $ 721.2
Affinity group marketing 83.0 84.5 92.1 93.7
SECURE 57.2 62.6 58.5 46.3
Joint marketing arrangements 51.6 53.2 58.1 57.6
-------- -------- -------- --------
Total net written premiums (A) $ 983.4 $ 950.9 $ 951.7 $ 918.8
======== ======== ======== ========
STATUTORY RATIO DEVELOPMENT:
Earned premiums (B) $ 892.1 $ 905.1 $ 915.5 $ 921.6
Losses and loss adjustment expenses (C) 594.3 627.1 702.7 619.8
Other underwriting expenses (D) 269.8 242.5 258.7 244.7
-------- -------- -------- --------
Total deductions 864.1 869.6 961.4 864.5
-------- -------- -------- --------
Statutory underwriting gain/(loss) $ 28.0 $ 35.5 $ (45.9) $ 57.1
======== ======== ======== ========
STATUTORY COMBINED RATIO: (2)
Loss and loss adjustment expense ratio (C / B) 66.6% 69.3% 76.8% 67.3%
Other underwriting expense ratio (D / A) 27.4% 25.5% 27.2% 26.6%
-------- -------- -------- --------
Combined ratio 94.0% 94.8% 104.0% 93.9%
======== ======== ======== ========
Net investment income (pre-tax) $ 90.4 $ 98.8 $ 102.0 $ 109.0
Effective tax rate on net investment income 27.2% 27.7% 28.4% 28.9%
Catastrophe losses, net of reinsurance (after-tax) $ 8.1 $ 23.2 $ 48.2 $ --
<CAPTION>
1Q 2Q 3Q
2000 2000 2000
---------- -------- --------
<S> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 1,027 $ 1,041 $ 1,048
CORE INCOME (1) $ 75 $ 82 $ 68
NET WRITTEN PREMIUMS BY PRODUCT LINE: (2)
Auto $ 583.3 $ 607.7 $ 598.6
Homeowners and other 306.4 375.7 394.2
---------- ---------- ----------
Total net written premiums (A) $ 889.7 $ 983.4 $ 992.8
========== ========== ==========
NET WRITTEN PREMIUMS BY DISTRIBUTION CHANNEL: (2)
Independent agents $ 710.2 $ 790.4 $ 798.3
Affinity group marketing 97.3 101.6 107.5
SECURE 30.8 26.4 16.7
Joint marketing arrangements 51.4 65.0 70.3
---------- ---------- ----------
Total net written premiums (A) $ 889.7 $ 983.4 $ 992.8
========== ========== ==========
STATUTORY RATIO DEVELOPMENT:
Earned premiums (B) $ 910.3 $ 920.0 $ 928.6
Losses and loss adjustment expenses (C) 656.4 668.1 711.8
Other underwriting expenses (D) 239.8 251.2 256.6
---------- ---------- ----------
Total deductions 896.2 919.3 968.4
---------- ---------- ----------
Statutory underwriting gain/(loss) $ 14.1 $ 0.7 $ (39.8)
========== ========== ==========
STATUTORY COMBINED RATIO: (2)
Loss and loss adjustment expense ratio (C / B) 72.1% 72.6% 76.7%
Other underwriting expense ratio (D / A) 27.0% 25.5% 25.8%
---------- ---------- ----------
Combined ratio 99.1% 98.1% 102.5%
========== ========== ==========
Net investment income (pre-tax) $ 112.6 $ 114.6 $ 112.4
Effective tax rate on net investment income 29.3% 29.5% 29.4%
Catastrophe losses, net of reinsurance (after-tax) $ 30.4 $ 17.2 $ 1.9
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
----------------- ---------- ---------- ----------------------
<S> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * 3% 3,006 $ 3,116 4%
CORE INCOME (1) 196% 185 $ 225 22%
NET WRITTEN PREMIUMS BY PRODUCT LINE: (2)
Auto 3% $ 1,797.7 $ 1,789.6 --
Homeowners and other 6% 1,088.3 1,076.3 (1%)
---------- ----------
Total net written premiums (A) 4% $ 2,886.0 $ 2,865.9 (1%)
========== ==========
NET WRITTEN PREMIUMS BY DISTRIBUTION CHANNEL: (2)
Independent agents 7% $ 2,285.2 $ 2,298.9 1%
Affinity group marketing 17% 259.6 306.4 18%
SECURE (71%) 178.3 73.9 (59%)
Joint marketing arrangements 21% 162.9 186.7 15%
---------- ----------
Total net written premiums (A) 4% $ 2,886.0 $ 2,865.9 (1%)
========== ==========
STATUTORY RATIO DEVELOPMENT:
Earned premiums (B) 1% $ 2,712.7 $ 2,758.9 2%
Losses and loss adjustment expenses (C) 1% 1,924.1 2,036.3 6%
Other underwriting expenses (D) (1%) 771.0 747.6 (3%)
---------- ----------
Total deductions 1% 2,695.1 2,783.9 3%
---------- ----------
Statutory underwriting gain/(loss) 13% $ 17.6 $ (25.0) NM
========== ==========
STATUTORY COMBINED RATIO: (2)
Loss and loss adjustment expense ratio (C / B) 70.9% 73.8%
Other underwriting expense ratio (D / A) 26.7% 26.1%
---------- ----------
Combined ratio 97.6% 99.9%
========== ==========
Net investment income (pre-tax) 10% $ 291.2 $ 339.6 17%
Effective tax rate on net investment income 27.8% 29.4%
Catastrophe losses, net of reinsurance (after-tax) (96%) $ 79.5 $ 49.5 (38%)
</TABLE>
(1) During April 2000, Travelers Insurance Group Inc. completed a cash tender
offer to purchase all the outstanding shares of Class A Common Stock of
Travelers Property Casualty Corp. at a price of $41.95 per share. Results
for the periods prior to April 20, 2000 are net of minority interest.
(2) The 1999 first quarter and nine months 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, and for the 1999
nine months were 70.9%, 26.4%, and 97.3%, respectively.
* Excludes realized gains on investments
NM - Not meaningful
PAGE 10
<PAGE>
GLOBAL CONSUMER - INTERNATIONAL
EUROPE, MIDDLE EAST & AFRICA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
------- -------- -------- -------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 561 $ 563 $ 607 $ 597
Adjusted Operating Expenses 373 369 370 389
Provision for Benefits, Claims, and Credit Losses 80 77 79 76
------ ------ ------ ------
Core Income Before Taxes 108 117 158 132
Income Taxes 40 44 60 50
------ ------ ------ ------
Core Income $ 68 $ 73 $ 98 $ 82
====== ====== ====== ======
Average Assets (in billions of dollars) $ 22 $ 22 $ 23 $ 22
====== ====== ====== ======
Return on Assets 1.25% 1.33% 1.69% 1.48%
====== ====== ====== ======
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Personal $ 9.9 $ 9.9 $ 10.4 $ 10.2
Cards 2.1 2.1 2.2 2.2
Mortgages 2.0 1.9 1.9 1.8
Auto 1.5 1.5 1.6 1.6
Other 1.2 1.0 1.2 1.4
------ ------ ------ ------
Total $ 16.7 $ 16.4 $ 17.3 $ 17.2
====== ====== ====== ======
Average Customer Deposits (in billions of dollars) $ 18.0 $ 17.3 $ 17.1 $ 16.6
EOP Accounts (in millions) 10.6 10.7 10.9 11.0
EOP Card Accounts (in millions) 3.4 3.5 3.6 3.6
Non-Interest Revenue as % of Total Revenues 35.6% 34.8% 36.2% 38.9%
Net Credit Loss Ratio 1.81% 1.71% 1.60% 1.56%
Loans 90+ Days Past Due:
In millions of dollars $ 893 $ 899 $ 953 $ 914
% 5.40% 5.46% 5.45% 5.33%
Proprietary Mutual Funds / UIT $ 279 $ 771 $ 394 $ 443
Proprietary Money Market Funds 473 433 253 177
------ ------ ------ ------
Total Proprietary Funds 752 1,204 647 620
Third Party Funds 227 133 203 307
------ ------ ------ ------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $ 979 $1,337 $ 850 $ 927
====== ====== ====== ======
Branches 471 466 464 466
ATM-only locations 74 78 78 76
Proprietary ATMs 923 927 930 935
WESTERN EUROPE:
Adjusted Revenues $ 493 $ 489 $ 499 $ 510
Core Income $ 65 $ 67 $ 71 $ 72
CENTRAL & EASTERN EUROPE, MIDDLE EAST AND AFRICA:
Adjusted Revenues $ 68 $ 74 $ 108 $ 87
Core Income $ 3 $ 6 $ 27 $ 10
<CAPTION>
1Q 2Q 3Q
2000 2000 2000
------- -------- --------
<S> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 593 $ 576 $ 572
Adjusted Operating Expenses 357 365 341
Provision for Benefits, Claims, and Credit Losses 74 67 67
------ ------ ------
Core Income Before Taxes 162 144 164
Income Taxes 60 53 61
------ ------ ------
Core Income $ 102 $ 91 $ 103
====== ====== ======
Average Assets (in billions of dollars) $ 22 $ 21 $ 21
====== ====== ======
Return on Assets 1.86% 1.74% 1.95%
====== ====== ======
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Personal $ 9.9 $ 9.8 $ 9.6
Cards 2.1 2.1 2.1
Mortgages 1.8 1.7 1.7
Auto 1.6 1.6 1.7
Other 1.4 1.3 1.3
------ ------ ------
Total $ 16.8 $ 16.5 $ 16.4
====== ====== ======
Average Customer Deposits (in billions of dollars) $ 16.6 $ 16.2 $ 16.0
EOP Accounts (in millions) 11.3 11.6 12.0
EOP Card Accounts (in millions) 3.6 3.8 3.9
Non-Interest Revenue as % of Total Revenues 36.7% 35.4% 36.9%
Net Credit Loss Ratio 1.70% 1.57% 1.54%
Loans 90+ Days Past Due:
In millions of dollars $ 875 $ 868 $ 800
% 5.26% 5.09% 4.93%
Proprietary Mutual Funds / UIT $ 397 $ 391 $ 226
Proprietary Money Market Funds 194 108 101
------ ------ ------
Total Proprietary Funds 591 499 327
Third Party Funds 508 487 779
------ ------ ------
====== ====== ======
Mutual Fund / UIT Sales at NAV (in millions of dollars) $1,099 $ 986 $1,106
====== ====== ======
Branches 470 475 490
ATM-only locations 79 83 89
Proprietary ATMs 950 956 995
WESTERN EUROPE:
Adjusted Revenues $ 497 $ 474 $ 466
Core Income $ 88 $ 75 $ 88
CENTRAL & EASTERN EUROPE, MIDDLE EAST AND AFRICA:
Adjusted Revenues $ 96 $ 102 $ 106
Core Income $ 14 $ 16 $ 15
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
---------------- ------ ---------- ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense (6%) $1,731 $1,741 1%
Adjusted Operating Expenses (8%) 1,112 1,063 (4%)
Provision for Benefits, Claims, and Credit Losses (15%) 236 208 (12%)
------ ------
Core Income Before Taxes 4% 383 470 23%
Income Taxes 2% 144 174 21%
------ ------
Core Income 5% $ 239 $ 296 24%
====== ======
Average Assets (in billions of dollars) (9%) $ 22 $ 21 (5%)
====== ======
Return on Assets 1.45% 1.88%
====== ======
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Personal (8%) $ 10.1 $ 9.8 (3%)
Cards (5%) 2.1 2.1 --
Mortgages (11%) 1.9 1.7 (11%)
Auto 6% 1.5 1.6 7%
Other 8% 1.1 1.3 18%
------ -------
Total (5%) $ 16.7 $ 16.5 (1%)
====== =======
Average Customer Deposits (in billions of dollars) (6%) $ 17.5 $ 16.3 (7%)
EOP Accounts (in millions) 10%
EOP Card Accounts (in millions) 8%
Non-Interest Revenue as % of Total Revenues 35.2% 36.1%
Net Credit Loss Ratio
Loans 90+ Days Past Due:
In millions of dollars (16%)
Proprietary Mutual Funds / UIT (43%) $1,444 $1,014 (30%)
Proprietary Money Market Funds (60%) 1,159 403 (65%)
------ ------
Total Proprietary Funds (49%) 2,603 1,417 (46%)
Third Party Funds 284% 563 1,774 215%
------ ------
Mutual Fund / UIT Sales at NAV (in millions of dollars) 30% $3,166 $3,191 1%
====== ======
Branches 6%
ATM-only locations 14%
Proprietary ATMs 7%
WESTERN EUROPE:
Adjusted Revenues (7%) $1,481 $1,437 (3%)
Core Income 24% $ 203 $ 251 24%
CENTRAL & EASTERN EUROPE, MIDDLE EAST AND AFRICA:
Adjusted Revenues (2%) $ 250 $ 304 22%
Core Income (44%) $ 36 $ 45 25%
</TABLE>
Reclassified to conform to the current period's presentation.
PAGE 11
<PAGE>
GLOBAL CONSUMER - INTERNATIONAL
ASIA PACIFIC
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
------ ------ ------ ------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 517 $ 542 $ 579 $ 606
Adjusted Operating Expenses 266 281 315 320
Provision for Benefits, Claims, and Credit Losses 88 89 77 99
------ ------ ------ ------
Core Income Before Taxes 163 172 187 187
Income Taxes 61 65 70 70
------ ------ ------ ------
Core Income $ 102 $ 107 $ 117 $ 117
====== ====== ====== ======
Average Assets (in billions of dollars) $ 29 $ 30 $ 31 $ 32
====== ====== ====== ======
Return on Assets 1.43% 1.43% 1.50% 1.45%
====== ====== ====== ======
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Mortgages $ 12.5 $ 13.0 $ 13.4 $ 13.9
Cards 4.5 4.6 4.8 5.0
Auto 2.1 2.2 2.2 2.2
Personal 1.4 1.4 1.5 1.5
Other 1.6 1.7 1.8 1.9
------ ------ ------ ------
Total $ 22.1 $ 22.9 $ 23.7 $ 24.5
====== ====== ====== ======
Average Customer Deposits (in billions of dollars) $ 39.9 $ 40.7 $ 42.3 $ 45.2
EOP Accounts (in millions) 8.0 8.6 9.0 9.2
EOP Card Accounts (in millions) 4.3 4.4 4.5 4.6
Non-Interest Revenue as % of Total Revenues 29.6% 31.0% 30.5% 29.8%
Net Credit Loss Ratio 1.43% 1.33% 1.23% 1.15%
Loans 90+ Days Past Due:
In millions of dollars $ 513 $ 509 $ 450 $ 453
% 2.31% 2.17% 1.87% 1.80%
Proprietary Mutual Funds / UIT $ 180 $ 189 $ 166 $ 275
Proprietary Money Market Funds 273 251 434 364
------ ------ ------ ------
Total Proprietary Funds 453 440 600 639
Third Party Funds 367 602 694 906
------ ------ ------ ------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $ 820 $1,042 $1,294 $1,545
====== ====== ====== ======
Branches 84 86 89 92
ATM-only locations 88 90 91 102
Proprietary ATMs 332 341 344 353
JAPAN:
Adjusted Revenues $ 84 $ 92 $ 108 $ 108
Core Income $ 21 $ 23 $ 25 $ 18
ASIA:
Adjusted Revenues $ 433 $ 450 $ 471 $ 498
Core Income $ 81 $ 84 $ 92 $ 99
<CAPTION>
1Q 2Q 2Q
2000 2000 2000
---------- --------- ---------
<S> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 683 $ 691 $ 695
Adjusted Operating Expenses 336 343 342
Provision for Benefits, Claims, and Credit Losses 79 67 77
---------- ---------- ----------
Core Income Before Taxes 268 281 276
Income Taxes 95 100 98
---------- ---------- ----------
Core Income $ 173 $ 181 $ 178
========== ========== ==========
Average Assets (in billions of dollars) $ 33 $ 33 $ 34
========== ========== ==========
Return on Assets 2.11% 2.21% 2.08%
========== ========== ==========
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Mortgages $ 14.0 $ 14.0 $ 14.1
Cards 5.4 5.7 5.8
Auto 2.3 2.3 2.4
Personal 1.5 1.5 1.6
Other 1.9 1.9 1.8
---------- ---------- ----------
Total $ 25.1 $ 25.4 $ 25.7
========== ========== ==========
Average Customer Deposits (in billions of dollars) $ 46.4 $ 47.0 $ 48.1
EOP Accounts (in millions) 9.9 10.2 10.5
EOP Card Accounts (in millions) 5.2 5.3 5.6
Non-Interest Revenue as % of Total Revenues 36.9% 35.8% 36.0%
Net Credit Loss Ratio 1.19% 1.01% 1.08%
Loans 90+ Days Past Due:
In millions of dollars $443 $405 $ 359
% 1.73% 1.56% 1.39%
Proprietary Mutual Funds / UIT $ 233 $ 238 $ 324
Proprietary Money Market Funds 340 309 256
---------- ---------- ----------
Total Proprietary Funds 573 547 580
Third Party Funds 1,740 856 957
---------- ---------- ----------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $ 2,313 $ 1,403 $ 1,537
========== ========== ==========
Branches 93 95 98
ATM-only locations 104 101 100
Proprietary ATMs 361 361 363
JAPAN:
Adjusted Revenues $ 142 $ 169 $ 170
Core Income $ 29 $ 39 $ 36
ASIA:
Adjusted Revenues $ 541 $ 522 $ 525
Core Income $ 144 $ 142 $ 142
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
-------------- ------- ------ ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 20% $1,638 $2,069 26%
Adjusted Operating Expenses 9% 862 1,021 18%
Provision for Benefits, Claims, and Credit Losses -- 254 223 (12%)
------ ------
Core Income Before Taxes 48% 522 825 58%
Income Taxes 40% 196 293 49%
------ ------
Core Income 52% $ 326 $ 532 63%
====== ======
Average Assets (in billions of dollars) 10% $ 30 $ 33 10%
====== ======
Return on Assets 1.45% 2.15%
====== ======
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Mortgages 5% $ 13.0 $ 14.0 8%
Cards 21% 4.6 5.6 22%
Auto 9% 2.2 2.3 5%
Personal 7% 1.4 1.5 7%
Other -- 1.7 1.9 12%
------ ------
Total 8% $ 22.9 $ 25.3 10%
====== ======
Average Customer Deposits (in billions of dollars) 14% $ 41.0 $ 47.2 15%
EOP Accounts (in millions) 17%
EOP Card Accounts (in millions) 24%
Non-Interest Revenue as % of Total Revenues 30.4% 36.4%
Net Credit Loss Ratio
Loans 90+ Days Past Due:
In millions of dollars (20%)
Proprietary Mutual Funds / UIT 95% $ 535 $ 795 49%
Proprietary Money Market Funds (41%) 958 905 (6%)
------ ------
Total Proprietary Funds (3%) 1,493 1,700 14%
Third Party Funds 38% 1,663 3,553 114%
------ ------
Mutual Fund / UIT Sales at NAV (in millions of dollars) 19% $3,156 $5,253 66%
====== ======
Branches 10%
ATM-only locations 10%
Proprietary ATMs 6%
JAPAN:
Adjusted Revenues 57% $ 284 $ 481 69%
Core Income 44% $ 69 $ 104 51%
ASIA:
Adjusted Revenues 11% $1,354 $1,588 17%
Core Income 54% $ 257 $ 428 67%
</TABLE>
Reclassified to conform to the current period's presentation
PAGE 12
<PAGE>
GLOBAL CONSUMER - INTERNATIONAL
LATIN AMERICA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
------- ------ ------ ------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 464 $ 496 $ 499 $ 511
Adjusted Operating Expenses 291 299 302 302
Provision for Loan Losses 101 135 117 94
------ ------ ------ ------
Core Income Before Taxes 72 62 80 115
Income Taxes 25 21 28 33
------ ------ ------ ------
Core Income $ 47 $ 41 $ 52 $ 82
====== ====== ====== ======
Average Assets (in billions of dollars) $ 14 $ 15 $ 14 $ 14
====== ====== ====== ======
Return on Assets 1.36% 1.10% 1.47% 2.32%
====== ====== ====== ======
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Cards $ 2.0 $ 2.0 $ 2.0 $ 2.1
Mortgages 2.0 1.9 2.0 1.9
Auto 1.9 1.7 1.7 1.7
Personal 1.5 1.4 1.5 1.5
Other 0.4 1.0 0.7 0.7
------ ------ ------ ------
Total $ 7.8 $ 8.0 $ 7.9 $ 7.9
====== ====== ====== ======
Average Customer Deposits (in billions of dollars) $ 12.9 $ 13.7 $ 13.6 $ 13.6
EOP Accounts (in millions) 8.5 8.1 9.0 8.8
EOP Card Accounts (in millions) 2.1 2.1 2.5 2.4
Non-Interest Revenue as % of Total Revenues 30.5% 35.9% 32.7% 33.7%
Net Credit Loss Ratio 4.74% 6.17% 5.55% 4.71%
Loans 90+ Days Past Due:
In millions of dollars $ 292 $ 346 $ 325 $ 320
% 3.75% 4.32% 4.10% 4.10%
Proprietary Mutual Funds/UIT Funds $ 188 $ 233 $ 198 $ 257
Proprietary Money Market Funds 1,008 1,128 1,096 1,022
------ ------ ------ ------
Total Proprietary Funds $1,196 $1,361 $1,294 $1,279
Third Party Funds 219 311 357 354
------ ------ ------ ------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $1,415 $1,672 $1,651 $1,633
====== ====== ====== ======
Branches 466 447 460 459
Consumer Finance Offices 43 43 94 96
ATM-only locations 69 73 84 85
Proprietary ATMs 649 660 745 747
<CAPTION>
1Q 2Q 3Q
2000 2000 2000
------ ------ ------
<S> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 513 $ 466 $ 436
Adjusted Operating Expenses 323 327 318
Provision for Loan Losses 90 76 69
------ ------ ------
Core Income Before Taxes 100 63 49
Income Taxes 34 22 17
------ ------ ------
Core Income $ 66 $ 41 $ 32
====== ====== ======
Average Assets (in billions of dollars) $ 14 $ 12 $ 11
====== ====== ======
Return on Assets 1.90% 1.37% 1.16%
====== ====== ======
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Cards $ 2.1 $ 2.1 $ 2.1
Mortgages 2.0 2.0 2.0
Auto 1.4 1.0 0.9
Personal 1.3 1.3 1.4
Other 0.8 0.8 0.6
------ ------ ------
Total $ 7.6 $ 7.2 $ 7.0
====== ====== ======
Average Customer Deposits (in billions of dollars) $ 13.8 $ 13.7 $ 13.6
EOP Accounts (in millions) 8.8 8.9 9.1
EOP Card Accounts (in millions) 2.4 2.3 2.3
Non-Interest Revenue as % of Total Revenues 36.7% 37.4% 39.8%
Net Credit Loss Ratio 4.77% 4.25% 3.89%
Loans 90+ Days Past Due:
In millions of dollars $ 333 $ 323 $ 319
% 4.58% 4.52% 4.55%
Proprietary Mutual Funds/UIT Funds $ 346 $ 180 $ 274
Proprietary Money Market Funds 1,099 1,088 817
------ ------ ------
Total Proprietary Funds $1,445 $1,268 $1,091
Third Party Funds 477 459 558
------ ------ ------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $1,922 $1,727 $1,649
====== ====== ======
Branches 465 460 418
Consumer Finance Offices 99 99 99
ATM-only locations 84 84 89
Proprietary ATMs 749 753 730
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
---------------- ------ ------- ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense (13%) $1,459 $1,415 (3%)
Adjusted Operating Expenses 5% 892 968 9%
Provision for Loan Losses (41%) 353 235 (33%)
------ ------
Core Income Before Taxes (39%) 214 212 (1%)
Income Taxes (39%) 74 73 (1%)
------ ------
Core Income (38%) $ 140 $ 139 (1%)
====== ======
Average Assets (in billions of dollars) (21%) $ 14 $ 12 (14%)
====== ======
Return on Assets 1.34% 1.55%
====== ======
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Cards 5% $ 2.0 $ 2.1 5%
Mortgages -- 2.0 2.0 --
Auto (47%) 1.8 1.1 (39%)
Personal (7%) 1.5 1.3 (13%)
Other (14%) 0.7 0.7 --
------ ------
Total (11%) $ 8.0 $ 7.2 (10%)
====== ======
Average Customer Deposits (in billions of dollars) -- $ 13.4 $ 13.7 2%
EOP Accounts (in millions) 1%
EOP Card Accounts (in millions) (8%)
Non-Interest Revenue as % of Total Revenues 33.7% 37.8%
Net Credit Loss Ratio
Loans 90+ Days Past Due:
In millions of dollars (2%)
Proprietary Mutual Funds/UIT Funds 38% $ 619 $ 800 29%
Proprietary Money Market Funds (25%) 3,232 3,004 (7%)
------ ------
Total Proprietary Funds (16%) $3,851 $3,804 (1%)
Third Party Funds 56% 887 1,494 68%
------ ------
Mutual Fund / UIT Sales at NAV (in millions of dollars) -- $4,738 $5,298 12%
====== ======
Branches (9%)
Consumer Finance Offices 5%
ATM-only locations 6%
Proprietary ATMs (2%)
</TABLE>
Reclassified to conform to the current period's presentation
PAGE 13
<PAGE>
GLOBAL CONSUMER
OTHER CONSUMER (1)
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
----- ----- ----- -----
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 49 $ 39 $ 30 $ 8
Adjusted Operating Expenses 66 73 44 39
Provision for Loan Losses 7 7 7 4
---- ---- ---- ----
Loss Before Tax Benefits (24) (41) (21) (35)
Income Tax Benefits (8) (16) (9) (13)
---- ---- ---- ----
Loss $(16) $(25) $(12) $(22)
==== ==== ==== ====
<CAPTION>
1Q 2Q 3Q
2000 2000 2000
------ ------ ------
<S> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 11 $(11) $(11)
Adjusted Operating Expenses 56 37 31
Provision for Loan Losses -- -- --
---- ---- ----
Loss Before Tax Benefits (45) (48) (42)
Income Tax Benefits (16) (20) (17)
---- ---- ----
Loss $(29) $(28) $(25)
==== ==== ====
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
---------------- -------- ------- ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense NM $ 118 $ (11) NM
Adjusted Operating Expenses (30%) 183 124 (32%)
Provision for Loan Losses NM 21 -- NM
----- -----
Loss Before Tax Benefits (100%) (86) (135) (57%)
Income Tax Benefits (89%) (33) (53) (61%)
----- -----
Loss (108%) $ (53) $ (82) (55%)
===== =====
</TABLE>
(1) Includes unallocated marketing, staff expenses, and certain treasury
functions.
NM Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 14
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
SALOMON SMITH BARNEY (SEGMENT BASIS) - PAGE 1
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
------- -------- ------- --------
<S> <C> <C> <C> <C>
Revenues:
Commissions $ 900 $ 903 $ 812 $1,015
Asset management and administration fees 377 400 431 430
Investment banking 655 762 760 793
Principal transactions 974 698 328 544
Other income 65 49 65 105
------ ------ ------ ------
Total non-interest revenues 2,971 2,812 2,396 2,887
------ ------ ------ ------
Interest and dividends 2,611 2,864 2,809 2,982
Interest expense 2,241 2,407 2,414 2,590
------ ------ ------ ------
Net interest and dividends 370 457 395 392
------ ------ ------ ------
Total revenues, net of interest expense 3,341 3,269 2,791 3,279
------ ------ ------ ------
Non-interest expenses:
Compensation and benefits 1,794 1,707 1,556 1,587
Communications 117 111 123 138
Occupancy and equipment 106 104 109 109
Floor brokerage and other production 101 125 113 128
Other operating and administrative expenses 220 261 206 258
------ ------ ------ ------
Total non-interest expenses 2,338 2,308 2,107 2,220
------ ------ ------ ------
Core income before income taxes 1,003 961 684 1,059
Provision for income taxes 355 351 252 395
------ ------ ------ ------
Core Income $ 648 $ 610 $ 432 $ 664
====== ====== ====== ======
Total equity (in billions of dollars) (1) $ 9.6 $ 9.6 $ 9.9 $ 9.3
Return on equity (1) 31.4% 29.1% 21.4% 31.2%
Pre-tax profit margin 30.0% 29.4% 24.5% 32.3%
Non-compensation expenses as a percent of
net revenues 16.3% 18.4% 19.7% 19.3%
<CAPTION>
1Q 2Q 3Q
2000 2000 2000
------ ------ -------
<S> <C> <C> <C>
Revenues:
Commissions $1,309 $1,017 $ 992
Asset management and administration fees 499 545 551
Investment banking 905 826 986
Principal transactions 860 636 763
Other income 240 220 156
------ ------ ------
Total non-interest revenues 3,813 3,244 3,448
------ ------ ------
Interest and dividends 3,326 3,928 4,371
Interest expense 2,953 3,479 3,949
------ ------ ------
Net interest and dividends 373 449 422
------ ------ ------
Total revenues, net of interest expense 4,186 3,693 3,870
------ ------ ------
Non-interest expenses:
Compensation and benefits 2,005 2,013 2,124
Communications 132 153 165
Occupancy and equipment 118 131 138
Floor brokerage and other production 149 154 172
Other operating and administrative expenses 260 301 288
------ ------ ------
Total non-interest expenses 2,664 2,752 2,887
------ ------ ------
Core income before income taxes 1,522 941 983
Provision for income taxes 565 300 361
------ ------ ------
Core Income $ 957 $ 641 $ 622
====== ====== ======
Total equity (in billions of dollars) (1) $ 9.9 $ 10.3 $ 10.7
Return on equity (1) 41.1% 26.2% 26.7%
Pre-tax profit margin 36.4% 25.5% 25.4%
Non-compensation expenses as a percent of
net revenues 15.7% 20.0% 19.7%
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
--------------- -------- --------- ---------------------
<S> <C> <C> <C> <C>
Revenues:
Commissions 22% $ 2,615 $ 3,318 27%
Asset management and administration fees 28% 1,208 1,595 32%
Investment banking 30% 2,177 2,717 25%
Principal transactions 133% 2,000 2,259 13%
Other income 140% 179 616 244%
------- -------
Total non-interest revenues 44% 8,179 10,505 28%
------- -------
Interest and dividends 56% 8,284 11,625 40%
Interest expense 64% 7,062 10,381 47%
------- -------
Net interest and dividends 7% 1,222 1,244 2%
------- -------
Total revenues, net of interest expense 39% 9,401 11,749 25%
------- -------
Non-interest expenses:
Compensation and benefits 37% 5,057 6,142 21%
Communications 34% 351 450 28%
Occupancy and equipment 27% 319 387 21%
Floor brokerage and other production 52% 339 475 40%
Other operating and administrative expenses 40% 687 849 24%
------- -------
Total non-interest expenses 37% 6,753 8,303 23%
------- -------
Core income before income taxes 44% 2,648 3,446 30%
Provision for income taxes 43% 958 1,226 28%
------- -------
Core Income 44% $ 1,690 $ 2,220 31%
======= =======
Total equity (in billions of dollars) (1) 8%
Return on equity (1) 27.2% 31.1%
Pre-tax profit margin 28.2% 29.3%
Non-compensation expenses as a percent of
net revenues 18.0% 18.4%
</TABLE>
(1) Total equity and return on equity (core income) for Salomon Smith
Barney are calculated on a legal entity basis.
Income for SSB excludes certain items booked on Citibank legal vehicles which is
reflected in the Global Relationship Bank results.
* Preliminary.
PAGE 15
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
SALOMON SMITH BARNEY - PAGE 2
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
------------ ------------ ----------- ----------
<S> <C> <C> <C> <C>
CLIENT ASSETS (IN BILLIONS OF DOLLARS)
ASSETS UNDER FEE-BASED MANAGEMENT:
Consulting Group and Internally Managed $ 107.4 $ 113.6 $ 113.0 $ 126.2
Financial Consultant (FC) Managed 26.8 29.5 31.6 43.6
------------ ----------- ----------- -----------
Total assets under fee-based management (1) $ 134.2 $ 143.1 $ 144.6 $ 169.8
============ =========== =========== ===========
Total client assets $ 816.0 $ 852.1 $ 844.6 $ 965.0
PRIVATE CLIENT
Registered FC's 10,918 11,032 11,086 11,333
Annualized retail gross production per FC (000) $ 481 $ 477 $ 465 $ 498
Domestic retail offices 457 467 472 476
INVESTMENT BANKING AND PUBLIC FINANCE
UNDERWRITING (FULL CREDIT TO BOOK MGR.):
DEBT AND EQUITY
Global volume (2) $ 103,686.8 $ 94,997.3 $ 90,442.9 $ 56,101.1
Global market share 8.9% 8.9% 9.6% 7.3%
Rank 2 2 2 4
U.S. volume (3) $ 81,926.0 $ 74,492.7 $ 61,982.4 $ 36,015.0
U.S. market share 13.5% 12.9% 12.3% 9.3%
Rank 2 2 2 4
MUNICIPALS
Volume (4) $ 7,320.5 $ 5,403.1 $ 8,629.7 $ 9,649.0
Market share 12.3% 9.1% 15.5% 18.3%
Rank 1 2 1 1
CAPITAL MARKETS/RESEARCH
Number of stocks in which markets are made 1,305 1,296 1,305 1,335
% of S&P sectors covered by research 98% 98% 98% 98%
<CAPTION>
1Q 2Q 3Q
2000 2000 2000
----------- ---------- ------------
<S> <C> <C> <C>
CLIENT ASSETS (IN BILLIONS OF DOLLARS)
ASSETS UNDER FEE-BASED MANAGEMENT:
Consulting Group and Internally Managed $ 133.1 $ 135.8 $ 140.2
Financial Consultant (FC) Managed 55.4 58.2 62.2
----------- ----------- -----------
Total assets under fee-based management (1) $ 188.5 $ 194.0 $ 202.4
=========== =========== ===========
Total client assets $ 1,032.2 $ 1,031.5 $ 1,047.3
PRIVATE CLIENT
Registered FC's 11,414 11,686 11,903
Annualized retail gross production per FC (000) $ 598 $ 498 $ 483
Domestic retail offices 482 492 503
INVESTMENT BANKING AND PUBLIC FINANCE
UNDERWRITING (FULL CREDIT TO BOOK MGR.):
DEBT AND EQUITY
Global volume (2) $ 97,548.7 $ 99,857.5 $ 82,295.3
Global market share 9.0% 10.5% 9.1%
Rank 2 1 2
U.S. volume (3) $ 71,585.5 $ 60,543.8 $ 58,095.5
U.S. market share 12.6% 13.1% 12.9%
Rank 2 2 2
MUNICIPALS
Volume (4) $ 4,875.2 $ 7,116.6 $ 6,505.3
Market share 12.0% 13.0% 13.7%
Rank 1 1 1
CAPITAL MARKETS/RESEARCH
Number of stocks in which markets are made 1,356 1,391 1,691
% of S&P sectors covered by research 99% 100% 98%
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
------------- ----------- ------------ ---------------------
<S> <C> <C> <C> <C>
CLIENT ASSETS (IN BILLIONS OF DOLLARS)
ASSETS UNDER FEE-BASED MANAGEMENT:
Consulting Group and Internally Managed 24% $ 113.0 $ 140.2 24%
Financial Consultant (FC) Managed 97% 31.6 62.2 97%
------------ ------------
Total assets under fee-based management (1) 40% $ 144.6 $ 202.4 40%
============ ============
Total client assets 24% $ 844.6 $ 1,047.3 24%
PRIVATE CLIENT
Registered FC's 7% 11,086 11,903 7%
Annualized retail gross production per FC (000) 4% $ 474 $ 526 11%
Domestic retail offices 7% 472 503 7%
INVESTMENT BANKING AND PUBLIC FINANCE
UNDERWRITING (FULL CREDIT TO BOOK MGR.):
DEBT AND EQUITY
Global volume (2) (9%) $ 289,127.0 $ 279,701.5 (3%)
Global market share 9.1% 9.5%
Rank 2 2
U.S. volume (3) (6%) $ 218,401.1 $ 190,224.8 (13%)
U.S. market share 12.9% 12.8%
Rank 2 2
MUNICIPALS
Volume (4) (25%) $ 21,353.3 $ 18,497.1 (13%)
Market share 12.2% 13.0%
Rank 1 1
CAPITAL MARKETS/RESEARCH
Number of stocks in which markets are made 30% 1,305 1,691 30%
% of S&P sectors covered by research 98% 98%
</TABLE>
(1) Includes certain assets jointly managed with SSB Citi Asset
Management.
(2) 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.
(3) 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.
(4) Total long term excluding private placement.
Reclassified to conform to the current period's presentation.
PAGE 16
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
GLOBAL RELATIONSHIP BANKING
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
------- ------- ------- -------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 1,117 $ 1,038 $ 1,020 $ 1,033
Adjusted Operating Expenses 829 805 789 775
Provision for Loan Losses (3) 1 6 2
------- ------- ------- -------
Core Income Before Taxes and Minority Interest 291 232 225 256
Income Taxes 107 86 82 93
Minority Interest, Net of Tax -- -- -- --
------- ------- ------- -------
Core Income $ 184 $ 146 $ 143 $ 163
======= ======= ======= =======
Average Assets (in billions of dollars) $ 88 $ 81 $ 76 $ 81
======= ======= ======= =======
Return on Assets 0.85% 0.72% 0.75% 0.80%
======= ======= ======= =======
<CAPTION>
GLOBAL CORPORATE AND INVESTMENT BANK
EMERGING MARKETS CORPORATE BANKING
(In millions of dollars)
1Q 2Q 3Q 4Q
1999 1999 1999 1999
------- ------- ------- -------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 1,145 $ 1,098 $ 1,057 $ 1,052
Adjusted Operating Expenses 522 525 535 547
Provision for Loan Losses 115 110 32 90
------- ------- ------- -------
Core Income Before Taxes and Minority Interest 508 463 490 415
Income Taxes 192 175 186 156
Minority Interest, Net of Tax 1 2 1 2
------- ------- ------- -------
Core Income $ 315 $ 286 $ 303 $ 257
======= ======= ======= =======
Average Assets (in billions of dollars) $ 80 $ 83 $ 82 $ 82
======= ======= ======= =======
======= ======= ======= =======
Return on Assets 1.60% 1.38% 1.47% 1.24%
======= ======= ======= =======
<CAPTION>
GLOBAL CORPORATE AND INVESTMENT BANK
EMERGING MARKETS CORPORATE BANKING
(In millions of dollars)
1Q 2Q 3Q
2000 2000 2000
------- ------- -------
<S> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 1,207 $ 1,265 $ 1,215
Adjusted Operating Expenses 792 801 815
Provision for Loan Losses 40 52 13
------- ------- -------
Core Income Before Taxes and Minority Interest 375 412 387
Income Taxes 135 151 139
Minority Interest, Net of Tax -- -- (2)
------- ------- -------
Core Income $ 240 $ 261 $ 250
======= ======= =======
Average Assets (in billions of dollars) $ 85 $ 96 $ 96
======= ======= =======
======= ======= =======
Return on Assets 1.14% 1.09% 1.04%
======= ======= =======
<CAPTION>
GLOBAL CORPORATE AND INVESTMENT BANK
EMERGING MARKETS CORPORATE BANKING
(In millions of dollars)
1Q 2Q 3Q
2000 2000 2000
------- ------- -------
<S> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 1,240 $ 1,272 $ 1,265
Adjusted Operating Expenses 536 604 597
Provision for Loan Losses 84 79 22
------- ------- -------
Core Income Before Taxes and Minority Interest 620 589 646
Income Taxes 226 215 245
Minority Interest, Net of Tax 2 4 --
------- ------- -------
Core Income $ 392 $ 370 $ 401
======= ======= =======
Average Assets (in billions of dollars) $ 83 $ 87 $ 93
======= ======= =======
======= ======= =======
Return on Assets 1.90% 1.71% 1.72%
======= ======= =======
<CAPTION>
GLOBAL CORPORATE AND INVESTMENT BANK
EMERGING MARKETS CORPORATE BANKING
(In millions of dollars)
3Q 2000 VS YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
----------------- ------- ------- ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 19% $ 3,175 $ 3,687 16%
Adjusted Operating Expenses 3% 2,423 2,408 (1%)
Provision for Loan Losses 117% 4 105 NM
------- -------
Core Income Before Taxes and Minority Interest 72% 748 1,174 57%
Income Taxes 70% 275 425 55%
Minority Interest, Net of Tax NM -- (2) NM
------- -------
Core Income 75% $ 473 $ 751 59%
======= =======
Average Assets (in billions of dollars) 26% $ 82 $ 92 12%
======= =======
Return on Assets 0.77% 1.09%
======= =======
<CAPTION>
GLOBAL CORPORATE AND INVESTMENT BANK
EMERGING MARKETS CORPORATE BANKING
(In millions of dollars)
3Q 2000 VS YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
----------------- ------- ------- ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 20% $ 3,300 $ 3,777 14%
Adjusted Operating Expenses 12% 1,582 1,737 10%
Provision for Loan Losses (31%) 257 185 (28%)
------- -------
Core Income Before Taxes and Minority Interest 32% 1,461 1,855 27%
Income Taxes 32% 553 686 24%
Minority Interest, Net of Tax (100%) 4 6 50%
------- -------
Core Income 32% $ 904 $ 1,163 29%
======= ======= =======
Average Assets (in billions of dollars) 13% $ 82 $ 88 7%
======= ======= =======
Return on Assets 1.47% 1.77%
======= =======
</TABLE>
PAGE 17
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
TRAVELERS PROPERTY CASUALTY - COMMERCIAL LINES
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
----------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 1,534 $ 1,558 $ 1,578 $ 1,595
CORE INCOME (1) $ 189 $ 201 $ 255 $ 200
NET WRITTEN PREMIUMS BY MARKET (2):
Commercial accounts $ 443.6 $ 440.1 $ 469.9 $ 462.7
Select accounts 372.3 393.4 355.4 373.0
Specialty accounts 148.2 159.8 158.4 143.1
National accounts 149.9 101.4 148.8 88.3
---------- ---------- ---------- ----------
Total net written premiums (A) $ 1,114.0 $ 1,094.7 $ 1,132.5 $ 1,067.1
========== ========== ========== ==========
STATUTORY RATIO DEVELOPMENT:
Earned premiums (B) $ 1,072.7 $ 1,100.8 $ 1,110.3 $ 1,090.7
Losses and loss adjustment expenses (3) (C) 817.5 827.2 928.8 832.2
Other underwriting expenses (D) 317.9 333.8 349.8 350.6
---------- ---------- ---------- ----------
Total deductions 1,135.4 1,161.0 1,278.6 1,182.8
---------- ---------- ---------- ----------
Statutory underwriting loss $ (62.7) $ (60.2) $ (168.3) $ (92.1)
========== ========== ========== ==========
STATUTORY COMBINED RATIO: (2), (3), (4)
Loss and loss adjustment expense ratio (C / B) 76.2% 75.1% 83.7% 76.3%
Other underwriting expense ratio (D / A) 28.5% 30.5% 30.9% 32.9%
---------- ---------- ---------- ----------
Combined ratio 104.7% 105.6% 114.6% 109.2%
========== ========== ========== ==========
Net investment income (pre-tax) $ 412.6 $ 410.5 $ 420.2 $ 445.4
Effective tax rate on net investment income 26.6% 26.5% 26.7% 27.1%
Catastrophe losses, net of reinsurance (after-tax) $ -- $ 9.9 $ 17.4 $ --
<CAPTION>
1Q 2Q 3Q
2000 2000 2000
--------- -------- ---------
<S> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 1,568 $ 1,626 $ 1,747
CORE INCOME (1) $ 240 $ 267 $ 315
NET WRITTEN PREMIUMS BY MARKET (2):
Commercial accounts $ 487.4 $ 457.4 $ 563.1
Select accounts 387.3 406.8 382.4
Specialty accounts 180.5 310.0 274.3
National accounts 92.0 58.5 131.4
---------- ---------- ----------
Total net written premiums (A) $ 1,147.2 $ 1,232.7 $ 1,351.2
========== ========== ==========
STATUTORY RATIO DEVELOPMENT:
Earned premiums (B) $ 1,079.0 $ 1,120.5 $ 1,232.5
Losses and loss adjustment expenses (3)(C) 792.7 854.7 960.3
Other underwriting expenses (D) 320.4 373.3 350.5
---------- ---------- ----------
Total deductions 1,113.1 1,228.0 1,310.8
---------- ---------- ----------
Statutory underwriting loss $ (34.1) $ (107.5) $ (78.3)
========== ========== ==========
STATUTORY COMBINED RATIO: (2), (3), (4)
Loss and loss adjustment expense ratio (C / B) 73.5% 76.3% 77.9%
Other underwriting expense ratio (D / A) 27.9% 30.3% 25.9%
---------- ---------- ----------
Combined ratio 101.4% 106.6% 103.8%
========== ========== ==========
Net investment income (pre-tax) $ 435.9 $ 439.1 $ 418.5
Effective tax rate on net investment income 26.9% 26.9% 26.6%
Catastrophe losses, net of reinsurance (after-tax) $ -- $ -- $ --
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
----------------------------------- -------------------------
<S> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * 11% $ 4,670 $ 4,941 6%
CORE INCOME (1) 24% $ 645 $ 822 27%
NET WRITTEN PREMIUMS BY MARKET (2):
Commercial accounts 20% $ 1,353.6 $ 1,507.9 11%
Select accounts 8% 1,121.1 1,176.5 5%
Specialty accounts 73% 466.4 764.8 64%
National accounts (12%) 400.1 281.9 (30%)
---------- --------
Total net written premiums (A) 19% $ 3,341.2 $3,731.1 12%
========== ========
STATUTORY RATIO DEVELOPMENT:
Earned premiums (B) 11% 3,283.8 $3,432.0 5%
Losses and loss adjustment expenses (3) (C) 3% 2,573.5 2,607.7 1%
Other underwriting expenses (D) -- 1,001.5 1,044.2 4%
---------- --------
Total deductions 3% 3,575.0 3,651.9 2%
---------- --------
Statutory underwriting loss 53% $ (291.2) $ (219.9) 24%
========== ========
STATUTORY COMBINED RATIO: (2), (3), (4)
Loss and loss adjustment expense ratio (C / B) 78.4% 76.0%
Other underwriting expense ratio (D / A) 30.0% 28.0%
------- ------
Combined ratio 108.4% 104.0%
======= ======
Net investment income (pre-tax) -- $ 1,243.3 $ 1,293.5 4%
Effective tax rate on net investment income 26.6% 26.8%
Catastrophe losses, net of reinsurance (after-tax) NM $ 27.3 $ -- NM
</TABLE>
(1) During April 2000, Travelers Insurance Group Inc. completed a cash tender
offer to purchase all the outstanding shares of Class A Common Stock of
Travelers Property Casualty Corp. at a price of $41.95 per share. Results
for the periods prior to April 20, 2000 are net of minority interest.
(2) The 2000 second quarter and nine months net written premiums include a
$130.7 million adjustment associated with the acquisition of the Reliance
Surety business. Excluding this transaction, the loss and loss adjustment
expense ratio, other underwriting expense ratio, and combined ratio for the
2000 second quarter were 76.3%, 29.1% and 105.4%, respectively, and for the
2000 nine months were 76.0%, 27.5% and 103.5%, respectively.
(3) The 1999 third quarter and nine months include the effects 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, and for the 1999 nine months
were 75.2%, 30.0% and 105.2%, respectively.
(4) Before policyholder dividends.
PAGE 18
<PAGE>
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING
SSB CITI ASSET MANAGEMENT GROUP AND GLOBAL RETIREMENT SERVICES
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
--------------------------- ----------------------
<S> <C> <C> <C> <C>
Revenues:
Investment advisory, admin. & distribution fees $ 341 $ 339 $ 345 $ 388
Unit Investment Trust revenues - net 9 10 21 8
Other revenues, net interest expense 6 9 5 13
-------- -------- -------- ------
Total revenues 356 358 371 409
-------- -------- -------- ------
Expenses:
Employee compensation and benefits 107 100 111 124
Mutual fund commission expense 30 28 34 28
Other expenses 85 90 86 126
-------- -------- -------- ------
Total expenses 222 218 231 278
-------- -------- -------- ------
Core income before income taxes 134 140 140 131
Provision for income taxes 53 55 56 52
-------- -------- -------- ------
Core income $ 81 $ 85 $ 84 $ 79
======== ======== ======== ======
Pre-tax profit margin 37.5% 39.2% 37.8% 31.9%
ASSETS UNDER MANAGEMENT BY PRODUCT TYPE (IN BILLIONS OF DOLLARS):
Money market and institutional liquidity funds:
Retail $ 70.7 $ 69.8 $ 71.1 $ 74.6
Institutional 16.9 15.2 16.6 18.9
-------- -------- -------- --------
Total money market and institutional liquidity funds 87.6 85.0 87.7 93.5
-------- -------- -------- --------
Long-term mutual funds:
Equity / Balanced 43.8 45.7 44.7 50.4
Taxable Fixed Income 29.1 30.1 28.4 22.5
Tax Exempt Fixed Income 10.9 10.2 9.7 8.8
Annuities 4.1 4.5 4.6 5.4
-------- -------- -------- --------
Total long-term mutual funds 87.9 90.5 87.4 87.1
-------- -------- -------- --------
Managed accounts:
Private client 43.2 46.3 47.5 51.1
Institutional 91.4 95.6 96.2 100.0
Emerging Markets Pension Administration -- -- -- --
-------- -------- -------- --------
Total managed accounts 134.6 141.9 143.7 151.1
-------- -------- -------- --------
Unit Investment Trusts held in client accounts 12.8 12.9 12.3 12.9
-------- -------- -------- --------
Alternative Investment Strategies 28.1 30.0 32.6 32.7
-------- -------- -------- --------
Total assets under management (1) $ 351.0 $ 360.3 $ 363.7 $ 377.3
======== ======== ======== ========
ASSETS UNDER MANAGEMENT BY CLIENT TYPE (IN BILLIONS OF DOLLARS):
Retail $ 210.9 $ 215.4 $ 214.8 $ 222.6
Emerging Markets Pension Administration -- -- -- --
Institutional (including Alternate Investment Strategies) 140.1 144.9 148.9 154.7
-------- ------ ------ -------
Total assets under management $ 351.0 $ 360.3 $ 363.7 $ 377.3
======== ======== ======== ========
Number of Morningstar 4- and 5-star funds 22 17 20 20
GLOBAL RETIREMENT SERVICES (IN BILLIONS OF DOLLARS):
Emerging Markets Pension Administration -
Assets Under Management (2) $ 10.6 $ 11.5 $ 11.8 $ 12.3
Number of Participants / Affiliates (in millions) 5.2 5.3 5.5 5.7
CitiStreet Joint Venture - Assets Under Administration -- -- -- --
<CAPTION>
1Q 2Q 3Q
2000 2000 2000
--------------------------- ----------
<S> <C> <C> <C>
Revenues:
Investment advisory, admin. & distribution fees $ 413 $ 469 $ 472
Unit Investment Trust revenues - net 12 7 16
Other revenues, net interest expense 11 3 3
------ ------ ------
Total revenues 436 479 491
------ ------ ------
Expenses:
Employee compensation and benefits 135 144 150
Mutual fund commission expense 29 34 26
Other expenses 114 148 153
------ ------ ------
Total expenses 278 326 329
------ ------ ------
Core income before income taxes 158 153 162
Provision for income taxes 63 61 66
------ ------ ------
Core income $ 95 $ 92 $ 96
====== ====== ======
Pre-tax profit margin 36.3% 31.9% 33.0%
ASSETS UNDER MANAGEMENT BY PRODUCT TYPE (IN BILLIONS OF DOLLARS):
Money market and institutional liquidity funds:
Retail $ 83.2 $ 79.3 $ 83.7
Institutional 17.0 18.2 20.0
-------- -------- --------
Total money market and institutional liquidity funds 100.2 97.5 103.7
-------- -------- --------
Long-term mutual funds:
Equity / Balanced 53.4 53.2 54.5
Taxable Fixed Income 21.4 21.6 20.0
Tax Exempt Fixed Income 8.5 8.3 8.5
Annuities 5.8 5.8 6.1
-------- -------- --------
Total long-term mutual funds 89.1 88.9 89.1
-------- -------- --------
Managed accounts:
Private client 54.4 55.5 59.5
Institutional 97.8 96.7 94.0
Emerging Markets Pension Administration 1.1 4.5 4.9
-------- -------- --------
Total managed accounts 153.3 156.7 158.4
-------- -------- --------
Unit Investment Trusts held in client accounts 12.3 11.2 10.9
-------- -------- --------
Alternative Investment Strategies 33.0 34.3 34.4
-------- -------- --------
Total assets under management (1) $ 387.9 $ 388.6 $ 396.5
======== ======== ========
ASSETS UNDER MANAGEMENT BY CLIENT TYPE (IN BILLIONS OF DOLLARS):
Retail $ 236.2 $ 231.2 $ 240.6
Emerging Markets Pension Administration 1.1 4.5 4.9
Institutional (including Alternate Investment Strategies) 150.6 152.9 151.0
-------- -------- --------
Total assets under management $ 387.9 $ 388.6 $ 396.5
======== ======== ========
Number of Morningstar 4- and 5-star funds 20 19 22
GLOBAL RETIREMENT SERVICES (IN BILLIONS OF DOLLARS):
Emerging Markets Pension Administration -
Assets Under Management (2) $ 13.9 $ 13.7 $ 13.8
Number of Participants / Affiliates (in millions) 5.9 6.1 6.2
CitiStreet Joint Venture - Assets Under Administration -- 189.2 196.4
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
------------------------------- -----------------
<S> <C> <C> <C> <C>
Revenues:
Investment advisory, admin. & distribution fees 37% $1,025 $1,354 32%
Unit Investment Trust revenues - net (24%) 40 35 (13%)
Other revenues, net interest expense (40%) 20 17 (15%)
------ ------ -----
Total revenues 32% 1,085 1,406 30%
------ ------ -----
Expenses:
Employee compensation and benefits 35% 318 429 35%
Mutual fund commission expense (24%) 92 89 (3%)
Other expenses 78% 261 415 59%
------ ------ -----
Total expenses 42% 671 933 39%
------ ------ -----
Core income before income taxes 16% 414 473 14%
Provision for income taxes 18% 164 190 16%
------ ------ -----
Core income 14% $ 250 $ 283 13%
====== ====== =====
Pre-tax profit margin 38.1% 33.7%
ASSETS UNDER MANAGEMENT BY PRODUCT TYPE (IN BILLIONS OF DOLLARS):
Money market and institutional liquidity funds:
Retail 18%
Institutional 20%
Total money market and institutional liquidity funds 18%
Long-term mutual funds:
Equity / Balanced 22%
Taxable Fixed Income (30%)
Tax Exempt Fixed Income (12%)
Annuities 33%
Total long-term mutual funds 2%
Managed accounts:
Private client 25%
Institutional (2%)
Emerging Markets Pension Administration NM
Total managed accounts 10%
Unit Investment Trusts held in client accounts (11%)
Alternative Investment Strategies 6%
Total assets under management (1) 9%
ASSETS UNDER MANAGEMENT BY CLIENT TYPE (IN BILLIONS OF DOLLARS):
Retail 12%
Emerging Markets Pension Administration NM
Institutional (including Alternate Investment Strategies) 1%
Total assets under management 9%
Number of Morningstar 4- and 5-star funds 10%
GLOBAL RETIREMENT SERVICES (IN BILLIONS OF DOLLARS):
Emerging Markets Pension Administration -
Assets Under Management (2) 17%
Number of Participants / Affiliates (in millions) 13%
CitiStreet Joint Venture - Assets Under Administration NM
</TABLE>
(1) Includes $29, $35, $36 and $31 billion for the 1999 first, second,
third and fourth quarters, respectively, and $31 billion in each 2000
quarter for Global Private Bank clients.
(2) Includes assets under management for both majority- and
minority-owned pension fund administration businesses in Latin
America.
NM - Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 19
<PAGE>
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING
GLOBAL PRIVATE BANK
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
----- ---- ---- -----
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $274 $301 $305 $332
Adjusted Operating Expenses 179 186 190 215
Provision for Loan Losses 8 2 2 --
---- ---- ---- ----
Core Income Before Taxes 87 113 113 117
Income Taxes 32 42 43 44
---- ---- ---- ----
Core Income $ 55 $ 71 $ 70 $ 73
==== ==== ==== ====
Average Assets (in billions of dollars) $ 18 $ 19 $ 21 $ 23
==== ==== ==== ====
Return on Assets 1.24% 1.50% 1.32% 1.26%
==== ==== ==== ====
Client Business Volumes (in billions of dollars) $119 $125 $128 $140
==== ==== ==== ====
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS):
Proprietary Managed Assets $ 27 $ 27 $ 27 $ 29
Other Assets under Fee based Management 3 3 3 4
Banking and Fiduciary Deposits 27 27 27 27
Loans 17 20 23 24
Other, Principally Custody Accounts 45 48 48 56
---- ---- ---- ----
Total Client Business Volumes $119 $125 $128 $140
==== ==== ==== ====
REVENUES:
Customer Revenues
Net Interest Spread and Recurring
Fee Based Revenues $198 $201 $205 $225
Transaction Revenues 38 56 62 68
---- ---- ---- ----
Total Customer Revenues 236 257 267 293
Other Revenues (Principally Allocated Equity
and Treasury Revenues) 38 44 38 39
---- ---- ---- ----
Total Revenues $274 $301 $305 $332
==== ==== ==== ====
United States $101 $109 $107 $112
International 173 192 198 220
---- ---- ---- ----
$274 $301 $305 $332
==== ==== ==== ====
Net Credit Loss Ratio 0.18% 0.05% 0.05% 0.13%
Loans 90+ Days Past Due:
In Millions of Dollars $191 $162 $145 $120
Delinquency Ratio (% of Avg Loans) 1.10% 0.88% 0.69% 0.54%
<CAPTION>
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING
GLOBAL PRIVATE BANK
(In millions of dollars)
1Q 2Q 3Q
2000 2000 2000
------------- ------------ ------------
<S> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 362 $ 338 $ 337
Adjusted Operating Expenses 213 210 214
Provision for Loan Losses 22 3 (3)
------------- ------------ ------------
Core Income Before Taxes 127 125 126
Income Taxes 47 46 46
------------- ------------ ------------
Core Income $ 80 $ 79 $ 80
============= ============ ============
Average Assets (in billions of dollars) $ 23 $ 25 $ 26
============= ============ ============
Return on Assets 1.40% 1.27% 1.22%
============= ============ ============
Client Business Volumes (in billions of dollars) $ 144 $ 149 $ 154
============= ============ ============
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS):
Proprietary Managed Assets $ 29 $ 30 $ 31
Other Assets under Fee based Management 5 5 5
Banking and Fiduciary Deposits 28 28 28
Loans 25 27 27
Other, Principally Custody Accounts 57 59 63
------------- ------------ ------------
Total Client Business Volumes $ 144 $ 149 $ 154
============= ============ ============
REVENUES:
Customer Revenues
Net Interest Spread and Recurring
Fee Based Revenues $ 233 $ 239 $ 243
Transaction Revenues 80 63 59
------------- ------------ ------------
Total Customer Revenues 313 302 302
Other Revenues (Principally Allocated Equity
and Treasury Revenues) 49 36 35
------------- ------------ ------------
Total Revenues $ 362 $ 338 $ 337
============= ============ ============
United States $ 121 $ 120 $ 124
International 241 218 213
------------- ------------ ------------
$ 362 $ 338 $ 337
============= ============ ============
Net Credit Loss Ratio 0.18% 0.05% 0.03%
Loans 90+ Days Past Due:
In Millions of Dollars $ 87 $ 78 $ 90
Delinquency Ratio (% of Avg Loans) 0.37% 0.32% 0.36%
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
------------------ ---------- ------------ ----------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 10% $ 880 $1,037 18%
Adjusted Operating Expenses 13% 555 637 15%
Provision for Loan Losses NM 12 22 83%
------ ------
Core Income Before Taxes 12% 313 378 21%
Income Taxes 7% 117 139 19%
------ ------
Core Income 14% $ 196 $ 239 22%
====== ======
Average Assets (in billions of dollars) 24% $ 19 $ 25 32%
====== ======
Return on Assets 1.38% 1.28%
Client Business Volumes (in billions of dollars) 20%
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS):
Proprietary Managed Assets 15%
Other Assets under Fee based Management 67%
Banking and Fiduciary Deposits 4%
Loans 17%
Other, Principally Custody Accounts 31%
Total Client Business Volumes 20%
REVENUES:
Customer Revenues
Net Interest Spread and Recurring
Fee Based Revenues 19% $ 604 $ 715 18%
Transaction Revenues (5%) 156 202 29%
------ ------
Total Customer Revenues 13% 760 917 21%
Other Revenues (Principally Allocated Equity
and Treasury Revenues) (8%) 120 120 --
------ ------
Total Revenues 10% $ 880 $1,037 18%
====== ======
United States 16% $ 317 $ 365 15%
International 8% 563 672 19%
------ ------
10% $ 880 $1,037 18%
====== ======
Net Credit Loss Ratio
Loans 90+ Days Past Due:
In Millions of Dollars (38%)
Delinquency Ratio (% of Avg Loans)
</TABLE>
NM - Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 20
<PAGE>
INVESTMENT ACTIVITIES
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
------------ --------------- ---------------- ------------------
<S> <C> <C> <C> <C>
REVENUES:
Proprietary Investments (1) $ 103 $ 219 $ 289 $ 191
LDC Debt Sales/Refinancing 20 18 19 21
Insurance Portfolio Gains (Losses) (2) 30 33 3 144
------- ------- ------- -------
Total Revenues $ 153 $ 270 $ 311 $ 356
======= ======= ======= =======
CORE INCOME:
Proprietary Investments (1) $ 59 $ 133 $ 179 $ 115
LDC Debt Sales/Refinancing 13 11 11 12
Insurance Portfolio Gains (Losses) (2) 17 18 4 86
------- ------- ------- -------
Total Core Income $ 89 $ 162 $ 194 $ 213
======= ======= ======= =======
PERIOD END ASSETS:
Proprietary Investments $ 5,200 $ 5,429 $ 6,194 $ 7,081
LDC Debt Sales/Refinancing 3,377 3,358 3,304 3,371
------- ------- ------- -------
Total Period End Assets $ 8,577 $ 8,787 $ 9,498 $10,452
======= ======= ======= =======
<CAPTION>
1Q 2Q 3Q
2000 2000 2000
-------- ------- ---------
<S> <C> <C> <C>
REVENUES:
Proprietary Investments (1) $ 1,363 $ 294 $ 92
LDC Debt Sales/Refinancing (112) 69 354
Insurance Portfolio Gains (Losses) (2) (235) 24 49
-------- -------- --------
Total Revenues $ 1,016 $ 387 $ 495
======== ======== ========
CORE INCOME:
Proprietary Investments (1) $ 850 $ 175 $ 39
LDC Debt Sales/Refinancing (69) 42 222
Insurance Portfolio Gains (Losses) (2) (147) 17 31
-------- -------- --------
Total Core Income $ 634 $ 234 $ 292
======== ======== ========
PERIOD END ASSETS:
Proprietary Investments $ 7,804 $ 8,170 $ 8,027
LDC Debt Sales/Refinancing 3,285 3,002 2,651
-------- -------- --------
Total Period End Assets $ 11,089 $11,172 $ 10,678
======== ======== ========
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
----------------- -------- ---------- -------------------------
<S> <C> <C> <C> <C>
REVENUES:
Proprietary Investments (1) (68%) $ 611 $ 1,749 186%
LDC Debt Sales/Refinancing NM 57 311 446%
Insurance Portfolio Gains (Losses) (2) NM 66 (162) NM
------- -------
Total Revenues 59% $ 734 $ 1,898 159%
======= =======
CORE INCOME:
Proprietary Investments (1) (78%) $ 371 $ 1,064 187%
LDC Debt Sales/Refinancing NM 35 195 457%
Insurance Portfolio Gains (Losses) (2) 675% 39 (99) NM
------- -------
Total Core Income 51% $ 445 $ 1,160 161%
======= =======
PERIOD END ASSETS:
Proprietary Investments 30%
LDC Debt Sales/Refinancing (20%)
Total Period End Assets 12%
</TABLE>
(1) Includes Venture Capital Activities and certain other corporate
investments.
(2) Represents gains (losses) on investments held by insurance companies
(see page 27 for Insurance Investment Portfolio details).
NM - Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 21
<PAGE>
CITIGROUP CONSOLIDATED STATEMENT OF INCOME
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
REVENUES
Loan interest, including fees $ 5,888 $ 5,614 $ 5,784 $ 5,886
Other interest and dividends 5,414 5,449 5,417 5,448
Insurance premiums 2,526 2,616 2,636 2,663
Commissions and fees 2,872 3,153 3,149 3,549
Principal transactions 1,770 1,272 954 1,164
Asset management and administration fees 955 1,003 1,056 1,150
Realized gains (losses) from sales of investments 53 188 35 281
Other income 1,043 1,141 1,066 810
-------- -------- -------- --------
Total revenues 20,521 20,436 20,097 20,951
Interest expense 6,451 6,056 6,076 6,185
-------- -------- -------- --------
Total revenues, net of interest expense 14,070 14,380 14,021 14,766
-------- -------- -------- --------
PROVISIONS FOR BENEFITS, CLAIMS, AND CREDIT LOSSES
Policyholder benefits and claims 2,048 2,151 2,258 2,214
Provision for credit losses 729 790 632 686
-------- -------- -------- --------
Total provisions for benefits, claims, and credit losses 2,777 2,941 2,890 2,900
-------- -------- -------- --------
OPERATING EXPENSES
Non-insurance compensation and benefits 3,755 3,615 3,531 3,635
Insurance underwriting, acquisition and operating 841 817 786 909
Restructuring-related items (130) 47 22 (27)
Other operating 2,855 3,045 2,922 3,158
-------- -------- -------- --------
Total operating expenses 7,321 7,524 7,261 7,675
-------- -------- -------- --------
INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGES 3,972 3,915 3,870 4,191
Provision for income taxes 1,423 1,402 1,379 1,499
Minority interest, net of income taxes 60 65 56 70
-------- -------- -------- --------
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING
CHANGES 2,489 2,448 2,435 2,622
Cumulative effect of accounting changes (127) -- -- --
-------- -------- -------- --------
NET INCOME $ 2,362 $ 2,448 $ 2,435 $ 2,622
======== ======== ======== ========
<CAPTION>
1Q 2Q 3Q
2000 2000 2000
-------- -------- --------
<S> <C> <C> <C>
REVENUES
Loan interest, including fees $ 6,024 $ 6,563 $ 7,049
Other interest and dividends 5,878 6,581 7,067
Insurance premiums 2,717 2,733 2,803
Commissions and fees 3,998 3,829 3,969
Principal transactions 1,723 1,435 1,547
Asset management and administration fees 1,284 1,332 1,331
Realized gains (losses) from sales of investments (169) 280 507
Other income 2,253 942 801
-------- -------- --------
Total revenues 23,708 23,695 25,074
Interest expense 6,724 7,791 8,737
-------- -------- --------
Total revenues, net of interest expense 16,984 15,904 16,337
-------- -------- --------
PROVISIONS FOR BENEFITS, CLAIMS, AND CREDIT LOSSES
Policyholder benefits and claims 2,251 2,307 2,373
Provision for credit losses 751 711 633
-------- -------- --------
Total provisions for benefits, claims, and credit losses 3,002 3,018 3,006
-------- -------- --------
OPERATING EXPENSES
Non-insurance compensation and benefits 4,125 4,188 4,332
Insurance underwriting, acquisition and operating 848 800 788
Restructuring-related items 20 3 36
Other operating 3,333 3,251 3,323
-------- -------- --------
-------- -------- --------
Total operating expenses 8,326 8,242 8,479
-------- -------- --------
INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGES 5,656 4,644 4,852
Provision for income taxes 2,011 1,619 1,751
Minority interest, net of income taxes 55 20 13
-------- -------- --------
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING
CHANGES 3,590 3,005 3,088
Cumulative effect of accounting changes -- -- --
-------- -------- --------
NET INCOME $ 3,590 $ 3,005 $ 3,088
======== ======== ========
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
---------------- -------- -------- ---------------------
<S> <C> <C> <C> <C>
REVENUES
Loan interest, including fees 22% $ 17,286 $ 19,636 14%
Other interest and dividends 30% 16,280 19,526 20%
Insurance premiums 6% 7,778 8,253 6%
Commissions and fees 26% 9,174 11,796 29%
Principal transactions 62% 3,996 4,705 18%
Asset management and administration fees 26% 3,014 3,947 31%
Realized gains (losses) from sales of investments NM 276 618 124%
Other income (25%) 3,250 3,996 23%
-------- --------
Total revenues 25% 61,054 72,477 19%
Interest expense 44% 18,583 23,252 25%
-------- --------
Total revenues, net of interest expense 17% 42,471 49,225 16%
-------- --------
PROVISIONS FOR BENEFITS, CLAIMS, AND CREDIT LOSSES
Policyholder benefits and claims 5% 6,457 6,931 7%
Provision for credit losses -- 2,151 2,095 (3%)
-------- --------
Total provisions for benefits, claims, and credit losses 4% 8,608 9,026 5%
-------- --------
OPERATING EXPENSES
Non-insurance compensation and benefits 23% 10,901 12,645 16%
Insurance underwriting, acquisition and operating -- 2,444 2,436 --
Restructuring-related items 64% (61) 59 NM
Other operating 14% 8,822 9,907 12%
-------- --------
Total operating expenses 17% 22,106 25,047 13%
-------- --------
INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGES 25% 11,757 15,152 29%
Provision for income taxes 27% 4,204 5,381 28%
Minority interest, net of income taxes (77%) 181 88 (51%)
-------- --------
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING
CHANGES 27% 7,372 9,683 31%
Cumulative effect of accounting changes -- (127) -- NM
-------- --------
NET INCOME 27% $ 7,245 $ 9,683 34%
======== ========
</TABLE>
PAGE 22
<PAGE>
CITIGROUP EARNINGS ANALYSIS - MANAGED BASIS
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 14,070 $ 14,380 $ 14,021 $ 14,766
Effect of Credit Card Securitization Activity 588 570 552 559
-------- -------- -------- --------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 14,658 14,950 14,573 15,325
Total Operating Expenses 7,321 7,524 7,261 7,675
Restructuring-Related Items (1) 130 (47) (22) 27
-------- -------- -------- --------
ADJUSTED OPERATING EXPENSES 7,451 7,477 7,239 7,702
OPERATING MARGIN 7,207 7,473 7,334 7,623
-------- -------- -------- --------
Provisions for Benefits, Claims and Credit Losses 2,777 2,941 2,890 2,900
Effect of Credit Card Securitization Activity 588 570 552 559
-------- -------- -------- --------
ADJUSTED PROVISIONS FOR BENEFITS, CLAIMS AND CREDIT LOSSES 3,365 3,511 3,442 3,459
CORE INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 3,842 3,962 3,892 4,164
Taxes on Core Income 1,367 1,420 1,386 1,489
Minority Interest, Net of Income Taxes 60 65 56 70
-------- -------- -------- --------
CORE INCOME 2,415 2,477 2,450 2,605
Restructuring-Related Items After-tax (1) 74 (29) (15) 17
Cumulative Effect of Accounting Changes (2) (127) -- -- --
-------- -------- -------- --------
NET INCOME $ 2,362 $ 2,448 $ 2,435 $ 2,622
======== ======== ======== ========
<CAPTION>
1Q 2Q 3Q
2000 2000 2000
-------- -------- --------
<S> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 16,984 $ 15,904 $ 16,337
Effect of Credit Card Securitization Activity 519 469 427
-------- -------- --------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 17,503 16,373 16,764
Total Operating Expenses 8,326 8,242 8,479
Restructuring-Related Items (1) (20) (3) (36)
-------- -------- --------
ADJUSTED OPERATING EXPENSES 8,306 8,239 8,443
OPERATING MARGIN 9,197 8,134 8,321
-------- -------- --------
Provisions for Benefits, Claims and Credit Losses 3,002 3,018 3,006
Effect of Credit Card Securitization Activity 519 469 427
-------- -------- --------
ADJUSTED PROVISIONS FOR BENEFITS, CLAIMS AND CREDIT LOSSES 3,521 3,487 3,433
CORE INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 5,676 4,647 4,888
Taxes on Core Income 2,019 1,620 1,764
Minority Interest, Net of Income Taxes 55 20 13
-------- -------- --------
CORE INCOME 3,602 3,007 3,111
Restructuring-Related Items After-tax (1) (12) (2) (23)
Cumulative Effect of Accounting Changes (2) -- -- --
-------- -------- --------
NET INCOME $ 3,590 $ 3,005 $ 3,088
======== ======== ========
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
----------------- -------- -------- ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 17% $ 42,471 $ 49,225 16%
Effect of Credit Card Securitization Activity (23%) 1,710 1,415 (17%)
-------- --------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 15% 44,181 50,640 15%
Total Operating Expenses 17% 22,106 25,047 13%
Restructuring-Related Items (1) 64% 61 (59) NM
-------- --------
ADJUSTED OPERATING EXPENSES 17% 22,167 24,988 13%
OPERATING MARGIN 13% 22,014 25,652 17%
Provisions for Benefits, Claims and Credit Losses 4% 8,608 9,026 5%
Effect of Credit Card Securitization Activity (23%) 1,710 1,415 (17%)
-------- --------
ADJUSTED PROVISIONS FOR BENEFITS, CLAIMS AND CREDIT LOSSES -- 10,318 10,441 1%
CORE INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 26% 11,696 15,211 30%
Taxes on Core Income 27% 4,173 5,403 29%
Minority Interest, Net of Income Taxes (77%) 181 88 (51%)
-------- --------
CORE INCOME 27% 7,342 9,720 32%
Restructuring-Related Items After-tax (1) 53% 30 (37) NM
Cumulative Effect of Accounting Changes (2) -- (127) -- NM
-------- --------
NET INCOME 27% $ 7,245 $ 9,683 34%
======== ========
</TABLE>
(1) Includes restructuring charges of $49 million pretax ($31 million
after-tax) in the 1999 third quarter, $82 million pretax ($51
million after-tax) in the 1999 fourth quarter, $22 million pretax
($14 million after-tax) in the 2000 second quarter and $24 million
pretax ($15 million after-tax) in the 2000 third 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, $122 million
pretax ($76 million after-tax) in the 1999 fourth quarter and $48
million pretax ($31 million after-tax) in the 2000 second quarter.
Also includes accelerated depreciation charges of $81 million
pretax ($51 million after-tax) in the 1999 first quarter, $47
million pretax ($29 million after-tax) in the 1999 second quarter,
$41 million pretax ($25 million after-tax) in the 1999 third
quarter, $13 million pretax ($8 million after-tax) in the 1999
fourth quarter, $20 million pretax ($12 million after-tax) in the
2000 first quarter, $29 million pretax ($19 million after-tax) in
the 2000 second quarter, and $12 million pretax ($8 million
after-tax) in the 2000 third quarter.
(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, "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 23
<PAGE>
CONSUMER LOAN DELINQUENCY AMOUNTS, NET CREDIT LOSSES AND RATIOS (In
millions of dollars, except loan amounts in billions)
<TABLE>
<CAPTION>
EOP
LOANS 90 DAYS OR MORE PAST DUE (1)
------------ --------------------------------------------------
3Q 2000 3Q 2000 2Q 2000 3Q 1999
------------ -------------- ------------ --------------
<S> <C> <C> <C> <C>
CITIBANKING NORTH AMERICA $ 7.1 $ 33 $ 33 $ 64
Ratio 0.46% 0.47% 0.90%
MORTGAGE BANKING 38.9 709 709 629
Ratio 1.82% 1.98% 2.28%
N.A. BANKCARDS 83.0 1,022 929 1,000
Ratio 1.23% 1.18% 1.42%
OTHER CARDS 1.9 20 24 19
Ratio 1.05% 1.17% 1.06%
CITIFINANCIAL 18.5 239 229 186
Ratio 1.29% 1.32% 1.27%
EUROPE, MIDDLE EAST AND AFRICA 16.2 800 868 953
Ratio 4.93% 5.09% 5.45%
ASIA PACIFIC 25.8 359 405 450
Ratio 1.39% 1.56% 1.87%
LATIN AMERICA 7.0 319 323 325
Ratio 4.55% 4.52% 4.10%
GLOBAL PRIVATE BANK 25.2 90 78 145
Ratio 0.36% 0.32% 0.69%
OTHER 0.3 -- -- 1
------- ------- ------- -------
TOTAL MANAGED 223.9 3,591 3,598 3,772
Ratio 1.60% 1.67% 1.96%
SECURITIZATION ACTIVITIES:
SECURITIZED CREDIT CARD RECEIVABLES (45.8) (611) (544) (704)
LOANS HELD FOR SALE (8.0) (66) (62) (37)
------- ------- ------- -------
(53.8) (677) (606) (741)
TOTAL LOANS $ 170.1 $ 2,914 $ 2,992 $ 3,031
======= ======= ======= =======
Ratio 1.71% 1.84% 2.18%
<CAPTION>
AVERAGE
LOANS NET CREDIT LOSSES (1)
-------------------------------------------------------------
3Q 2000 3Q 2000 2Q 2000 3Q 1999
------------ ------------ ----------- --------------
<S> <C> <C> <C> <C>
CITIBANKING NORTH AMERICA $ 7.0 $ 15 $ 15 $ 19
Ratio 0.86% 0.88% 1.06%
MORTGAGE BANKING 37.2 5 4 8
Ratio 0.06% 0.05% 0.12%
N.A. BANKCARDS 81.2 714 745 777
Ratio 3.50% 3.96% 4.40%
OTHER CARDS 1.8 13 12 14
Ratio 3.00% 2.84% 3.23%
CITIFINANCIAL 17.8 86 80 71
Ratio 1.91% 1.93% 2.00%
EUROPE, MIDDLE EAST AND AFRICA 16.4 64 65 69
Ratio 1.54% 1.57% 1.60%
ASIA PACIFIC 25.7 70 64 73
Ratio 1.08% 1.01% 1.23%
LATIN AMERICA 7.0 69 76 110
Ratio 3.89% 4.25% 5.55%
GLOBAL PRIVATE BANK 24.9 2 3 2
Ratio 0.03% 0.05% 0.05%
OTHER 0.3 -- -- 7
------- ------- ------- -------
TOTAL MANAGED 219.3 1,038 1,064 1,150
Ratio 1.88% 2.06% 2.41%
SECURITIZATION ACTIVITIES:
SECURITIZED CREDIT CARD RECEIVABLES (44.1) (386) (441) (525)
LOANS HELD FOR SALE (7.8) (41) (28) (27)
------- ------- ------- -------
(51.9) (427) (469) (552)
TOTAL LOANS $ 167.4 $ 611 $ 595 $ 598
======= ======= ======= =======
Ratio 1.45% 1.54% 1.74%
</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.
Reclassified to conform to the current period's presentation.
PAGE 24
<PAGE>
DETAILS OF CREDIT LOSS EXPERIENCE
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
------ ------ ------ --------
<S> <C> <C> <C> <C>
ALLOWANCE FOR CREDIT LOSSES AT BEGINNING OF PERIOD $6,617 $6,662 $6,743 $6,706
------ ------ ------ ------
PROVISION FOR CREDIT LOSSES
Consumer 617 679 594 594
Commercial 112 111 38 92
------ ------ ------ ------
729 790 632 686
------ ------ ------ ------
GROSS CREDIT LOSSES
Consumer 694 771 743 737
Commercial 132 135 104 158
------ ------ ------ ------
826 906 847 895
------ ------ ------ ------
CREDIT RECOVERIES
Consumer 118 140 145 136
Commercial 20 24 16 57
------ ------ ------ ------
138 164 161 193
------ ------ ------ ------
NET CREDIT LOSSES 688 742 686 702
------ ------ ------ ------
Other -- net 4 33 17 (11)
====== ====== ====== ======
ALLOWANCE FOR CREDIT LOSSES AT END OF PERIOD $6,662 $6,743 $6,706 $6,679
====== ====== ====== ======
Net consumer credit losses $ 576 $ 631 $ 598 $ 601
As a percentage of average consumer loans 1.79% 1.91% 1.74% 1.68%
Net commercial credit losses $ 112 $ 111 $ 88 $ 101
As a percentage of average commercial loans 0.49% 0.48% 0.37% 0.42%
ALLOWANCE FOR CREDIT LOSSES
Consumer $3,355 $3,436 $3,449 $3,431
Commercial 3,307 3,307 3,257 3,248
------ ------ ------ ------
Total Allowance for Credit Losses $6,662 $6,743 $6,706 $6,679
====== ====== ====== ======
ALLOWANCE AS A PERCENT OF TOTAL LOANS
Consumer 2.58% 2.57% 2.49% 2.32%
Commercial 3.43% 3.35% 3.30% 3.37%
Total 2.94% 2.90% 2.83% 2.73%
<CAPTION>
1Q 2Q 3Q
2000 2000 2000
------- ------- -------
<S> <C> <C> <C>
ALLOWANCE FOR CREDIT LOSSES AT BEGINNING OF PERIOD $ 6,679 $ 6,657 $ 6,736
------- ------- -------
PROVISION FOR CREDIT LOSSES
Consumer 627 580 591
Commercial 124 131 42
------- ------- -------
751 711 633
------- ------- -------
GROSS CREDIT LOSSES
Consumer 775 766 771
Commercial 143 155 74
------- ------- -------
918 921 845
------- ------- -------
CREDIT RECOVERIES
Consumer 147 171 160
Commercial 19 24 32
------- ------- -------
166 195 192
------- ------- -------
NET CREDIT LOSSES 752 726 653
------- ------- -------
Other -- net (21) 94 (37)
======= ======= =======
ALLOWANCE FOR CREDIT LOSSES AT END OF PERIOD $ 6,657 $ 6,736 $ 6,679
======= ======= =======
Net consumer credit losses $ 628 $ 595 $ 611
As a percentage of average consumer loans 1.71% 1.54% 1.45%
Net commercial credit losses $ 124 $ 131 $ 42
As a percentage of average commercial loans 0.52% 0.51% 0.15%
ALLOWANCE FOR CREDIT LOSSES
Consumer $ 3,409 $ 3,391 $ 3,338
Commercial 3,248 3,345 3,341
------- ------- -------
Total Allowance for Credit Losses $ 6,657 $ 6,736 $ 6,679
======= ======= =======
ALLOWANCE AS A PERCENT OF TOTAL LOANS
Consumer 2.25% 2.08% 1.96%
Commercial 3.19% 3.01% 2.85%
Total 2.63% 2.46% 2.33%
</TABLE>
PAGE 25
<PAGE>
CITIGROUP SUPPLEMENTAL DATA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
-------------- -------------- -------------- --------------
<S> <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
Other 1,277 1,341 1,232 1,162
============== ============== ============== ==============
Total Commercial Cash-Basis Loans $ 1,635 $ 1,555 $ 1,509 $ 1,403
============== ============== ============== ==============
COMMERCIAL CASH-BASIS LOANS
Emerging Markets $ 1,095 $ 1,197 $ 1,154 $ 1,044
Global Relationship Banking 308 279 302 304
Insurance Subsidiaries 218 66 40 41
Investment Activities 14 13 13 14
============== ============== ============== ==============
Total Commercial Cash-Basis Loans $ 1,635 $ 1,555 $ 1,509 $ 1,403
============== ============== ============== ==============
COMMERCIAL RENEGOTIATED LOANS $ 47 $ 50 $ 68 $ 59
============== ============== ============== ==============
CONSUMER LOANS ON WHICH ACCRUAL OF INTEREST
HAS BEEN SUSPENDED $ 2,252 $ 2,259 $ 2,214 $ 2,230
============== ============== ============== ==============
OTHER REAL ESTATE OWNED
Consumer (2) $ 217 $ 213 $ 211 $ 204
-------------- -------------- -------------- --------------
Emerging Markets 26 28 50 44
Global Relationship Banking 212 178 178 156
Insurance Subsidiaries 242 445 445 311
-------------- -------------- -------------- --------------
Total Commercial (2) 480 651 673 511
-------------- -------------- -------------- --------------
Corporate/Other 8 8 8 14
-------------- -------------- -------------- --------------
Total $ 705 $ 872 $ 892 $ 729
============== ============== ============== ==============
ASSETS PENDING DISPOSITION (3) $ 95 $ 89 $ 87 $ 86
------------------------------
============== ============== ============== ==============
<CAPTION>
1Q 2Q 3Q
2000 2000 2000
-------------- ------------ ------------
<S> <C> <C> <C>
CASH-BASIS AND RENEGOTIATED LOANS
COMMERCIAL CASH-BASIS LOANS
Collateral Dependent (at lower of cost or
collateral value) (1) $ 237 $ 210 $ 167
Other 1,218 1,428 1,515
============== ============ ============
Total Commercial Cash-Basis Loans $ 1,455 $ 1,638 $ 1,682
============== ============ ============
COMMERCIAL CASH-BASIS LOANS
Emerging Markets $ 1,066 $ 1,132 $ 1,185
Global Relationship Banking 319 465 453
Insurance Subsidiaries 59 38 40
Investment Activities 11 3 4
============== ============ ============
Total Commercial Cash-Basis Loans $ 1,455 $ 1,638 $ 1,682
============== ============ ============
COMMERCIAL RENEGOTIATED LOANS $ 46 $ 27 $ 22
============== ============ ============
CONSUMER LOANS ON WHICH ACCRUAL OF INTEREST
HAS BEEN SUSPENDED $ 2,217 $ 2,191 $ 2,096
============== ============ ============
OTHER REAL ESTATE OWNED
Consumer (2) $ 189 $ 180 $ 180
-------------- ------------ ------------
Emerging Markets 43 43 42
Global Relationship Banking 141 135 122
Insurance Subsidiaries 310 114 113
-------------- ------------ ------------
Total Commercial (2) 494 292 277
-------------- ------------ ------------
Corporate/Other 9 8 8
-------------- ------------ ------------
Total $ 692 $ 480 $ 465
============== ============ ============
ASSETS PENDING DISPOSITION (3) $ 97 $ 93 $ 89
------------------------------
============== ============ ============
</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 26
<PAGE>
INSURANCE INVESTMENT PORTFOLIO
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
--------- --------- -------- ----------
<S> <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
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies 3,728 3,324 2,983 2,778
Corporates (including redeemable preferreds) 27,346 27,504 27,606 26,635
Obligations of states and political subdivisions 11,023 10,672 10,362 9,981
Debt securities issued by foreign governments 1,822 1,842 1,631 1,711
Held to maturity, at amortized cost 28 26 24 33
-------- -------- -------- --------
Total fixed income 53,542 52,662 51,664 50,148
Equity securities, at market 1,685 1,819 1,905 2,121
Short-term and other 6,651 5,301 5,524 5,322
-------- -------- -------- --------
Total investments held by Insurance companies $ 61,878 $ 59,782 $ 59,093 $ 57,591
======== ======== ======== ========
After tax unrealized gains / (losses) on invested assets $ 943 $ 100 $ (251) $ (587)
======== ======== ======== ========
<CAPTION>
3Q 2000 VS.
1Q 2Q 3Q 3Q 1999 INCREASE/
2000 2000 2000 (DECREASE)
-------- -------- -------- ----------------
<S> <C> <C> <C> <C>
Fixed-income investments:
Available for sale, at market:
Mortgage-backed securities - principally
obligations of U.S. Government agencies $ 9,382 $ 9,371 $ 9,679 7%
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies 3,033 2,692 2,790 (6%)
Corporates (including redeemable preferreds) 27,317 27,868 27,602 --
Obligations of states and political subdivisions 10,049 9,963 10,092 (3%)
Debt securities issued by foreign governments 1,579 1,626 1,901 17%
Held to maturity, at amortized cost 32 31 30 25%
-------- ------- -------
Total fixed income 51,392 51,551 52,094 1%
Equity securities, at market 2,111 2,013 1,873 (2%)
Short-term and other 6,478 6,581 7,753 40%
-------- ------- -------
Total investments held by Insurance companies $ 59,981 $ 60,145 $ 61,720 4%
======== ======== ========
After tax unrealized gains/(losses) on invested assets $ (218) $ (391) $ (18) (93%)
======== ======== ========
</TABLE>
PAGE 27
<PAGE>
GLOBAL CONSUMER
GLOBAL CARDS SUPPLEMENTAL DATA (1)
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
---------- --------- --------- ----------
<S> <C> <C> <C> <C>
Adjusted Revenues, Net of Interest Expense $ 2,418 $ 2,422 $ 2,460 $ 2,559
Adjusted Operating Expenses 964 963 975 997
Adjusted Provision for Loan Losses (2) 925 938 914 898
--------- --------- --------- ---------
Core Income Before Taxes 529 521 571 664
Income Taxes 195 191 211 242
--------- --------- --------- ---------
Core Income $ 334 $ 330 $ 360 $ 422
========= ========= ========= =========
Managed Average Assets (in billions of dollars) $ 81 $ 82 $ 84 $ 85
========= ========= ========= =========
Return on Managed Assets 1.67% 1.61% 1.70% 1.97%
========= ========= ========= =========
KEY INDICATORS
(in billions of dollars)
End of Period Managed Receivables $ 80.1 $ 81.4 $ 81.8 $ 85.7
Total EOP Open Accounts (in millions) 52.6 52.4 52.6 52.7
Total Sales $ 46.3 $ 51.2 $ 51.8 $ 55.2
Coincident Net Credit Loss Ratio % 4.74% 4.66% 4.45% 4.36%
Loans 90+ Days Past Due % 1.57% 1.48% 1.49% 1.52%
GEOGRAPHIC DISTRIBUTION
CORE INCOME
North America $ 277 $ 280 $ 301 $ 324
International 57 50 59 98
========= ========= ========= =========
Total $ 334 $ 330 $ 360 $ 422
========= ========= ========= =========
AVERAGE LOANS
North America $ 69.2 $ 71.2 $ 71.7 $ 72.3
International 8.6 8.7 9.0 9.2
========= ========= ========= =========
Total $ 77.8 $ 79.9 $ 80.7 $ 81.5
========= ========= ========= =========
TOTAL EOP OPEN ACCOUNTS (IN MILLIONS)
North America 42.8 42.4 42.0 42.1
International 9.8 10.0 10.6 10.6
========= ========= ========= =========
Total 52.6 52.4 52.6 52.7
========= ========= ========= =========
TOTAL SALES
North America $ 39.6 $ 44.0 $ 44.3 $ 47.2
International 6.7 7.2 7.5 8.0
========= ========= ========= =========
Total $ 46.3 $ 51.2 $ 51.8 $ 55.2
========= ========= ========= =========
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
North America $ 798 $ 818 $ 791 $ 800
International 111 110 115 95
========= ========= ========= =========
Total $ 909 $ 928 $ 906 $ 895
========= ========= ========= =========
<CAPTION>
1Q 2Q 3Q
2000 2000 2000
--------- --------- ---------
<S> <C> <C> <C>
Adjusted Revenues, Net of Interest Expense $ 2,539 $ 2,550 $ 2,623
Adjusted Operating Expenses 1,032 1,025 1,048
Adjusted Provision for Loan Losses (2) 898 848 822
--------- --------- ---------
Core Income Before Taxes 609 677 753
Income Taxes 224 247 277
--------- --------- ---------
Core Income $ 385 $ 430 $ 476
========= ========= =========
Managed Average Assets (in billions of dollars) $ 88 $ 92 $ 97
========= ========= =========
Return on Managed Assets 1.76% 1.88% 1.95%
========= ========= =========
KEY INDICATORS
(in billions of dollars)
End of Period Managed Receivables $ 85.5 $ 91.6 $ 95.6
Total EOP Open Accounts (in millions) 53.5 55.1 56.8
Total Sales $ 54.0 $ 61.1 $ 60.6
Coincident Net Credit Loss Ratio % 4.31% 3.90% 3.51%
Loans 90+ Days Past Due % 1.53% 1.25% 1.27%
GEOGRAPHIC DISTRIBUTION
CORE INCOME
North America $ 296 $ 308 $ 369
International 89 122 107
========= ========= =========
Total $ 385 $ 430 $ 476
========= ========= =========
AVERAGE LOANS
North America $ 74.3 $ 77.5 $ 83.0
International 9.6 9.9 9.9
--------- --------- ---------
Total $ 83.9 $ 87.4 $ 92.9
========= ========= =========
TOTAL EOP OPEN ACCOUNTS (IN MILLIONS)
North America 42.3 43.7 45.0
International 11.2 11.4 11.8
--------- --------- ---------
Total 53.5 55.1 56.8
========= ========= =========
TOTAL SALES
North America $ 45.7 $ 52.1 $ 51.3
International 8.3 9.0 9.3
--------- --------- ---------
Total $ 54.0 $ 61.1 $ 60.6
========= ========= =========
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
North America $ 798 $ 757 $ 727
International 101 90 92
--------- --------- ---------
Total $ 899 $ 847 $ 819
========= ========= =========
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
---------------- ------ ------ ----------------------
<S> <C> <C> <C> <C>
Adjusted Revenues, Net of Interest Expense 7% $7,300 $7,712 6%
Adjusted Operating Expenses 7% 2,902 3,105 7%
Adjusted Provision for Loan Losses (2) (10%) 2,777 2,568 (8%)
------ ------
Core Income Before Taxes 32% 1,621 2,039 26%
Income Taxes 31% 597 748 25%
------ ------
Core Income 32% $1,024 $1,291 26%
====== ======
Managed Average Assets (in billions of dollars) 15% $ 82 $ 92 12%
====== ======
Return on Managed Assets 1.67% 1.87%
====== ======
KEY INDICATORS
(in billions of dollars)
End of Period Managed Receivables 17%
Total EOP Open Accounts (in millions) 8%
Total Sales 17%
Coincident Net Credit Loss Ratio %
Loans 90+ Days Past Due %
GEOGRAPHIC DISTRIBUTION
CORE INCOME
North America 23% $ 858 $ 973 13%
International 81% 166 318 92%
------ -------
Total 32% $1,024 $1,291 26%
====== ======
AVERAGE LOANS
North America 16% $ 70.7 $ 78.3 11%
International 10% 8.8 9.8 11%
------ -------
Total 15% $ 79.5 $ 88.1 11%
====== =======
TOTAL EOP OPEN ACCOUNTS (IN MILLIONS)
North America 7%
International 11%
Total 8%
TOTAL SALES
North America 16% $127.9 $149.1 17%
International 24% 21.4 26.6 24%
------ ------
Total 17% $149.3 $175.7 18%
====== ======
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
North America (8%) $2,407 $2,282 (5%)
International (20%) 336 283 (16%)
------ ------
Total (10%) $2,743 $2,565 (6%)
====== ======
</TABLE>
(1) Worldwide Cards consists of the Cards business segment and card
operations included within the International consumer segments.
(2) On a managed basis.
Reclassified to conform to the current period's presentation.
PAGE 28
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
SUPPLEMENTAL PRODUCT AND REGIONAL RESULTS
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
------- ------- --------- --------
<S> <C> <C> <C> <C>
PRODUCT VIEW
TOTAL REVENUE
Global Corporate Finance (1) $ 3,348 $ 3,176 $ 2,819 $ 2,954
Transaction Services (2) 695 712 748 770
Private Client 1,404 1,458 1,466 1,605
Commercial Lines 1,534 1,558 1,578 1,595
Other 156 59 (165) 35
------- ------- ------- -------
Total GCIB $ 7,137 $ 6,963 $ 6,446 $ 6,959
======= ======= ======= =======
CORE INCOME
Global Corporate Finance (1) $ 821 $ 750 $ 698 $ 750
Transaction Services (2) 41 42 54 58
Private Client 212 226 216 264
Commercial Lines 189 201 255 200
Other 73 24 (90) 12
------- ------- ------- -------
Total GCIB $ 1,336 $ 1,243 $ 1,133 $ 1,284
======= ======= ======= =======
REGIONAL VIEW
TOTAL REVENUE
JENA (3) $ 5,912 $ 5,721 $ 5,244 $ 5,797
Emerging Markets 1,225 1,242 1,202 1,162
------- ------- ------- -------
Total GCIB $ 7,137 $ 6,963 $ 6,446 $ 6,959
======= ======= ======= =======
CORE INCOME
JENA (3) $ 1,022 $ 928 $ 796 $ 1,021
Emerging Markets 314 315 337 263
------- ------- ------- -------
Total GCIB $ 1,336 $ 1,243 $ 1,133 $ 1,284
======= ======= ======= =======
TRADING RELATED REVENUE
Fixed Income $ 851 $ 582 $ 443 $ 434
Equities 292 395 292 312
Foreign Exchange 440 313 316 336
All Other 305 134 (51) 94
------- ------- ------- -------
Total Trading Related Revenue $ 1,888 $ 1,424 $ 1,000 $ 1,176
======= ======= ======= =======
<CAPTION>
1Q 2Q 3Q
2000 2000 2000
--------- -------- -------
<S> <C> <C> <C>
PRODUCT VIEW
TOTAL REVENUE
Global Corporate Finance (1) $ 3,799 $ 3,631 $ 3,791
Transaction Services (2) 826 868 894
Private Client 1,916 1,686 1,675
Commercial Lines 1,568 1,626 1,747
Other 92 45 (10)
------- ------- -------
Total GCIB $ 8,201 $ 7,856 $ 8,097
======= ======= =======
CORE INCOME
Global Corporate Finance (1) $ 1,068 $ 849 $ 883
Transaction Services (2) 101 137 146
Private Client 364 254 247
Commercial Lines 240 267 315
Other 56 32 (3)
------- ------- -------
Total GCIB $ 1,829 $ 1,539 $ 1,588
======= ======= =======
REGIONAL VIEW
TOTAL REVENUE
JENA (3) $ 6,775 $ 6,427 $ 6,680
Emerging Markets 1,426 1,429 1,417
------- ------- -------
Total GCIB $ 8,201 $ 7,856 $ 8,097
======= ======= =======
CORE INCOME
JENA (3) $ 1,407 $ 1,158 $ 1,183
Emerging Markets 422 381 405
------- ------- -------
Total GCIB $ 1,829 $ 1,539 $ 1,588
======= ======= =======
TRADING RELATED REVENUE
Fixed Income $ 695 $ 533 $ 716
Equities 508 436 391
Foreign Exchange 339 352 220
All Other 104 63 82
------- ------- -------
Total Trading Related Revenue $ 1,646 $ 1,384 $ 1,409
======= ======= =======
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
----------------- ------- -------- ----------------------
<S> <C> <C> <C> <C>
PRODUCT VIEW
TOTAL REVENUE
Global Corporate Finance (1) 34% $ 9,343 $11,221 20%
Transaction Services (2) 20% 2,155 2,588 20%
Private Client 14% 4,328 5,277 22%
Commercial Lines 11% 4,670 4,941 6%
Other 94% 50 127 154%
------- -------
Total GCIB 26% $20,546 $24,154 18%
======= =======
CORE INCOME
Global Corporate Finance (1) 27% $ 2,269 $ 2,800 23%
Transaction Services (2) 170% 137 384 180%
Private Client 14% 654 865 32%
Commercial Lines 24% 645 822 27%
Other 97% 7 85 NM
------- -------
Total GCIB 40% $ 3,712 $ 4,956 34%
======= =======
REGIONAL VIEW
TOTAL REVENUE
JENA (3) 27% $16,877 $19,882 18%
Emerging Markets 18% 3,669 4,272 16%
------- -------
Total GCIB 26% $20,546 $24,154 18%
======= =======
CORE INCOME
JENA (3) 49% $ 2,746 $ 3,748 36%
Emerging Markets 20% 966 1,208 25%
------- -------
Total GCIB 40% $ 3,712 $ 4,956 34%
======= =======
TRADING RELATED REVENUE
Fixed Income 62% $ 1,876 $ 1,944 4%
Equities 34% 979 1,335 36%
Foreign Exchange (30%) 1,069 911 (15%)
All Other NM 388 249 (36%)
------- -------
Total Trading Related Revenue 41% $ 4,312 $ 4,439 3%
======= =======
</TABLE>
(1) Global Corporate Finance includes Global Fixed Income, FX and Structured
Products, Global Equities, Global Investment Banking, Global Equipment
Finance, Emerging Markets (EM) Sales & Trading, EM Local Finance, Loan
Portfolio, Phibro, Robinson Humphrey, Municipals & Stock Loans.
(2) Transaction Services includes e-Business, Cash Management, Trade Finance
and Worldwide Securities Services.
(3) JENA includes Japan, Western Europe and North America.
NM Not meaningful
Reclassified to conform to the current period's presentation.
PAGE 29
<PAGE>
EMERGING MARKETS - CONSUMER AND CORPORATE BANKING (1)
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
------- ------- ------- --------
<S> <C> <C> <C> <C>
REVENUE
Asia $ 955 $ 1,048 $ 1,028 $ 1,016
Latin America 1,080 1,020 981 1,013
CEEMEA 310 366 438 400
Other (2) 6 7 24
------- ------- ------- -------
TOTAL $ 2,343 $ 2,440 $ 2,454 $ 2,453
======= ======= ======= =======
CORE INCOME
Asia $ 172 $ 229 $ 237 $ 183
Latin America 267 200 177 215
CEEMEA 50 68 106 83
Other (24) (12) 25 9
------- ------- ------- -------
TOTAL $ 465 $ 485 $ 545 $ 490
======= ======= ======= =======
CORE INCOME
ASIA:
Global Consumer $ 81 $ 84 $ 92 $ 99
Global Corporate & Investment Bank 87 131 132 76
Global Investment Management & Private Banking 4 14 13 8
------- ------- ------- -------
TOTAL ASIA $ 172 $ 229 $ 237 $ 183
======= ======= ======= =======
LATIN AMERICA:
Global Consumer $ 47 $ 41 $ 52 $ 82
Global Corporate & Investment Bank 203 134 103 106
Global Investment Management & Private Banking 17 25 22 27
------- ------- ------- -------
TOTAL LATIN AMERICA $ 267 $ 200 $ 177 $ 215
======= ======= ======= =======
CEEMEA:
Global Consumer $ 3 $ 6 $ 27 $ 10
Global Corporate & Investment Bank 48 62 77 72
Global Investment Management & Private Banking (1) -- 2 1
------- ------- ------- -------
TOTAL CEEMEA $ 50 $ 68 $ 106 $ 83
======= ======= ======= =======
OTHER (24) (12) 25 9
EMERGING MARKETS:
Global Consumer $ 131 $ 131 $ 171 $ 191
Global Corporate & Investment Bank 314 315 337 263
Global Investment Management & Private Banking 20 39 37 36
------- ------- ------- -------
======= ======= ======= =======
TOTAL EMERGING MARKETS $ 465 $ 485 $ 545 $ 490
======= ======= ======= =======
<CAPTION>
1Q 2Q 3Q
2000 2000 2000
------- ------- --------
<S> <C> <C> <C>
REVENUE
Asia $ 1,192 $ 1,145 $ 1,104
Latin America 1,136 1,121 1,057
CEEMEA 445 477 530
Other 29 32 34
------- ------- -------
TOTAL $ 2,802 $ 2,775 $ 2,725
======= ======= =======
CORE INCOME
Asia $ 314 $ 300 $ 285
Latin America 267 226 210
CEEMEA 115 111 127
Other 7 (5) 19
------- ------- -------
TOTAL $ 703 $ 632 $ 641
======= ======= =======
CORE INCOME
ASIA:
Global Consumer $ 144 $ 142 $ 142
Global Corporate & Investment Bank 149 144 132
Global Investment Management & Private Banking 21 14 11
------- ------- -------
TOTAL ASIA $ 314 $ 300 $ 285
======= ======= =======
LATIN AMERICA:
Global Consumer $ 66 $ 41 $ 32
Global Corporate & Investment Bank 172 147 146
Global Investment Management & Private Banking 29 38 32
------- ------- -------
TOTAL LATIN AMERICA $ 267 $ 226 $ 210
======= ======= =======
CEEMEA:
Global Consumer $ 14 $ 16 $ 15
Global Corporate & Investment Bank 94 95 108
Global Investment Management & Private Banking 7 -- 4
------- ------- -------
TOTAL CEEMEA $ 115 $ 111 $ 127
======= ======= =======
OTHER 7 (5) 19
EMERGING MARKETS:
Global Consumer $ 224 $ 199 $ 189
Global Corporate & Investment Bank 422 381 405
Global Investment Management & Private Banking 57 52 47
------- ------- -------
TOTAL EMERGING MARKETS $ 703 $ 632 $ 641
======= ======= =======
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
----------------- ------- ------- ---------------------
<S> <C> <C> <C> <C>
REVENUE
Asia 7% $ 3,031 $ 3,441 14%
Latin America 8% 3,081 3,314 8%
CEEMEA 21% 1,114 1,452 30%
Other 386% 11 95 NM
------- -------
TOTAL 11% $ 7,237 $ 8,302 15%
======= =======
CORE INCOME
Asia 20% $ 638 $ 899 41%
Latin America 19% 644 703 9%
CEEMEA 20% 224 353 58%
Other (24%) (11) 21 NM
------- -------
TOTAL 18% $ 1,495 $ 1,976 32%
======= =======
CORE INCOME
ASIA:
Global Consumer 54% $ 257 $ 428 67%
Global Corporate & Investment Bank -- 350 425 21%
Global Investment Management & Private Banking (15%) 31 46 48%
------- -------
TOTAL ASIA 20% $ 638 $ 899 41%
======= =======
LATIN AMERICA:
Global Consumer (38%) $ 140 $ 139 (1%)
Global Corporate & Investment Bank 42% 440 465 6%
Global Investment Management & Private Banking 45% 64 99 55%
------- -------
TOTAL LATIN AMERICA 19% $ 644 $ 703 9%
======= =======
CEEMEA:
Global Consumer (44%) $ 36 $ 45 25%
Global Corporate & Investment Bank 40% 187 297 59%
Global Investment Management & Private Banking 100% 1 11 NM
------- -------
TOTAL CEEMEA 20% $ 224 $ 353 58%
======= =======
OTHER (24%) (11) 21 NM
EMERGING MARKETS:
Global Consumer 11% $ 433 $ 612 41%
Global Corporate & Investment Bank 20% 966 1,208 25%
Global Investment Management & Private Banking 27% 96 156 63%
------- -------
TOTAL EMERGING MARKETS 18% $ 1,495 $ 1,976 32%
======= =======
</TABLE>
(1) Also includes Global Investment Management and Private Banking. Excludes
Investment Activities. NM - Not meaningful
PAGE 30
<PAGE>
GLOBAL WEALTH MANAGEMENT
SUPPLEMENTAL DATA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
------- ------- ------- -------
<S> <C> <C> <C> <C>
REVENUES
Private Client $ 1,404 $ 1,558 $ 1,466 $ 1,605
SSB Citi Asset Management 356 358 371 409
Global Private Bank 274 301 305 332
Global Consumer Investment, Life Insurance & Annuity Products 1,301 1,424 1,422 1,483
------- ------- ------- -------
TOTAL GLOBAL WEALTH MANAGEMENT $ 3,335 $ 3,641 $ 3,564 $ 3,829
======= ======= ======= =======
CORE INCOME
Private Client $ 212 $ 226 $ 216 $ 264
SSB Citi Asset Management 81 85 84 79
Global Private Bank 55 71 70 73
Global Consumer Investment, Life Insurance & Annuity Products 259 301 293 269
------- ------- ------- -------
TOTAL GLOBAL WEALTH MANAGEMENT $ 607 $ 683 $ 663 $ 685
======= ======= ======= =======
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS)
Private Client - Client Assets $ 816 $ 852 $ 845 $ 965
SSB Citi Asset Management -Assets Under Management 351 360 364 377
PBG - Client Business Volumes 119 125 128 140
Global Consumer Investment, Life Insurance & Annuity Products 547 560 560 578
Less Cross-Sell Volumes Included Above (263) (269) (268) (279)
------- ------- ------- -------
TOTAL CLIENT BUSINESS VOLUMES $ 1,570 $ 1,628 $ 1,629 $ 1,781
======= ======= ======= =======
<CAPTION>
1Q 2Q 3Q
1999 1999 1999
------- ------- -------
<S> <C> <C> <C>
REVENUES
Private Client $ 1,916 $ 1,686 $ 1,675
SSB Citi Asset Management 436 479 491
Global Private Bank 362 338 337
Global Consumer Investment, Life Insurance & Annuity Products 1,670 1,617 1,532
------- ------- -------
TOTAL GLOBAL WEALTH MANAGEMENT $ 4,384 $ 4,120 $ 4,035
======= ======= =======
CORE INCOME
Private Client $ 364 $ 254 $ 247
SSB Citi Asset Management 95 92 96
Global Private Bank 80 79 80
Global Consumer Investment, Life Insurance & Annuity Products 353 357 335
------- ------- -------
TOTAL GLOBAL WEALTH MANAGEMENT $ 892 $ 782 $ 758
======= ======= =======
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS)
Private Client - Client Assets $ 1,032 $ 1,032 $ 1,047
SSB Citi Asset Management -Assets Under Management 388 389 397
PBG - Client Business Volumes 144 149 154
Global Consumer Investment, Life Insurance & Annuity Products 593 599 608
Less Cross-Sell Volumes Included Above (294) (300) (311)
------- ------- -------
======= ======= =======
TOTAL CLIENT BUSINESS VOLUMES $ 1,863 $ 1,869 $ 1,895
======= ======= =======
<CAPTION>
3Q 2000 VS. YTD YTD YTD 3Q 2000 VS.
3Q 1999 INCREASE/ 3Q 3Q YTD 3Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
-------------------- --------------- --------- -----------------------
<S> <C> <C> <C> <C>
REVENUES
Private Client 14% $ 4,428 $ 5,277 19%
SSB Citi Asset Management 32% 1,085 1,406 30%
Global Private Bank 10% 880 1,037 18%
Global Consumer Investment, Life Insurance & Annuity Product 8% 4,147 4,819 16%
-------- --------
TOTAL GLOBAL WEALTH MANAGEMENT 13% $ 10,540 $ 12,539 19%
======== ========
CORE INCOME
Private Client 14% $ 654 $ 865 32%
SSB Citi Asset Management 14% 250 283 13%
Global Private Bank 14% 196 239 22%
Global Consumer Investment, Life Insurance & Annuity Product 14% 853 1,045 23%
-------- --------
TOTAL GLOBAL WEALTH MANAGEMENT 14% $ 1,953 $ 2,432 25%
======== ========
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS)
Private Client - Client Assets 24% $ 845 $ 1,047 24%
SSB Citi Asset Management -Assets Under Management 9% 364 397 9%
PBG - Client Business Volumes 20% 128 154 20%
Global Consumer Investment, Life Insurance & Annuity Product 9% 560 608 9%
Less Cross-Sell Volumes Included Above 16% (268) (311) 16%
-------- --------
TOTAL CLIENT BUSINESS VOLUMES 16% $ 1,629 $ 1,895 16%
======== ========
</TABLE>
Note: Global Wealth Management includes businesses that provide services related
to the accumulation and management of wealth.
PAGE 31
<PAGE>
CITICORP SUPPLEMENTAL DATA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q
1999 1999 1999 1999
------- ------- ------- ---------
<S> <C> <C> <C> <C>
NET INTEREST REVENUE STATISTICS
(TAXABLE EQUIVALENT BASIS)
Net Interest Revenue $ 3,587 $ 3,651 $ 3,660 $ 3,714
Effect of Credit Card Securitization Activity 1,084 1,020 1,043 1,008
------- ------- ------- ---------
Total Adjusted $ 4,671 $ 4,671 $ 4,703 $ 4,722
======= ======= ======= =========
Average Interest Earning Assets (in billions of dollars) $ 300.8 $ 304.4 $ 307.9 $ 313.4
Effect of Credit Card Securitization Activity 44.3 46.7 47.9 48.6
------- ------- ------- ---------
Total Adjusted $ 345.1 $ 351.1 $ 355.8 $ 362.0
======= ======= ======= =========
Net Interest Margin (%) 4.84% 4.81% 4.72% 4.70%
Effect of Credit Card Securitization Activity 0.65% 0.53% 0.52% 0.47%
------- ------- ------- ---------
Total Adjusted 5.49% 5.34% 5.24% 5.17%
======= ======= ======= =========
<CAPTION>
YTD YTD
1Q 2Q 3Q 3Q 3Q
2000 2000 2000 1999 2000
-------- ------- ------- -------- ----------
<S> <C> <C> <C> <C> <C>
NET INTEREST REVENUE STATISTICS
(TAXABLE EQUIVALENT BASIS)
Net Interest Revenue $ 3,713 $ 3,812 $ 3,855 $ 10,898 $ 11,380
Effect of Credit Card Securitization Activity 1,019 844 816 3,147 2,679
------- ------- ------- -------- ----------
Total Adjusted $ 4,732 $ 4,656 $ 4,671 $ 14,045 $ 14,059
======= ======= ======= ======== ==========
Average Interest Earning Assets (in billions of dollars) $ 324.6 $ 347.0 $ 368.5 $ 304.4 $ 346.7
Effect of Credit Card Securitization Activity 48.2 45.8 44.1 46.3 46.0
------- ------- ------- -------- ----------
Total Adjusted $ 372.8 $ 392.8 $ 412.6 $ 350.7 $ 392.7
======= ======= ======= ======== ==========
Net Interest Margin (%) 4.60% 4.42% 4.16% 4.79% 4.38%
Effect of Credit Card Securitization Activity 0.51% 0.35% 0.34% 0.56% 0.40%
------- ------- ------- -------- ----------
Total Adjusted 5.11% 4.77% 4.50% 5.35% 4.78%
======= ======= ======= ======== ==========
</TABLE>
PAGE 32
<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: October 18, 2000 CITIGROUP INC.
By: /s/ Roger W. Trupin
---------------------------------
Name: Roger W. Trupin
Title: Controller
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