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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) July 19, 2000
---------------------------
Citigroup Inc.
--------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 1-9924 52-1568099
--------------- ----------- -------------------
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
153 East 53rd Street, New York, New York 10043
-------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(212) 559-1000
-------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
<PAGE>
Citigroup Inc.
Current Report on Form 8-K
Item 5. Other Events.
On July 19, 2000 Citigroup Inc. reported core income of $3.0 billion for the
second quarter ended June 30, 2000. Core income per share, diluted, was $0.87, a
23% increase over that reported in the 1999 second quarter. For the first six
months of 2000, Citigroup's core income was a record $6.6 billion, or $1.91 per
share rising 36%, from the first half of 1999. The diversity and strength of
Citigroup's businesses and continued emphasis on expense and risk management
during the second quarter delivered:
- Core earnings growth of 22% in the Global Consumer Group, 24%
in the Global Corporate and Investment Bank, and 11% for
Global Investment Management and Private Banking;
- Return on equity of 24.8%;
- Total capital (including trust preferred securities) increased
to $56.5 billion at 6/30/00.
"Our outstanding results for the quarter demonstrate the impact of our market
share gains around the world, the consistent growth of our consumer businesses,
the company's discipline in managing risk and our continued investment in our
future," said Sanford I. Weill, Chairman and Chief Executive Officer. "We have
invested substantially this quarter in acquisitions and partnerships that
meaningfully expand our global businesses. We not only completed the acquisition
of Schroders, but we made tremendous headway in the integration of that business
and the resulting organization, Schroder Salomon Smith Barney, has quickly
become a leading investment and corporate banking force throughout Europe. We
further strengthened our presence in Central Europe with the acquisition of a
majority interest in Bank Handlowy, one of Poland's leading commercial banks,
and continued to build our presence in Asia through an alliance with the Fubon
Group in Taiwan. We also acquired the remaining 15% of Travelers Property
Casualty that we did not own.
"We continue to build our capabilities on the Internet and other new media,"
continued Weill. "Yesterday, we announced a wide-ranging alliance with America
Online under which we will integrate our payments and money transfer
capabilities into all AOL brands and broaden access to our products among
millions of online consumers. We were also the first global financial services
firm to launch account aggregation capabilities at our new MyCiti.com site.
These are critical steps toward our goals of, over time, making available a
comprehensive suite of consumer financial services accessible at any time,
through any device, and strengthening our position as the payments engine of the
Internet. We are also involved in a number of initiatives that make it easier
for our corporate customers to do business on the Web, and are actively
participating in Internet-based capital markets."
<PAGE>
GLOBAL CONSUMER
2ND QUARTER CORE INCOME: $1.28 BILLION, UP 22% FROM $1.05 BILLION
Citigroup's Global Consumer Group achieved record earnings for the eighth
consecutive quarter, driven by growth in global cards and continued strong sales
of investment products around the world. Citigroup's global cards business, with
55 million accounts and almost $92 billion in receivables across 46 countries,
posted 31% income growth and 13% receivables growth in the second quarter. Cross
marketing programs also contributed to results, with Salomon Smith Barney
generating strong demand for Travelers individual annuities and mortgage
referrals to the consumer and Private Bank. Credit trends across all of
Citigroup's global consumer businesses were stable-to-improving in the quarter.
Results for the quarter include e-Consumer, representing the portion of Internet
development investment directly related to Citigroup's consumer businesses.
- BANKING/LENDING core income rose 23% to $629 million. Higher deposit
spreads and increased sales of deposit and investment products drove
10% revenue growth and 35% income growth at CITIBANKING NORTH AMERICA.
MORTGAGE BANKING core income rose 27% as higher servicing revenue and
both internal and acquired student loan growth offset flat mortgage
originations. The NORTH AMERICA CARDS business generated sales volume
and receivables growth of 19% and 13%, respectively, while adding 1
million new accounts. This growth, combined with a continued decline in
loss rates to 3.96% in the second quarter, offset margin compression to
produce a 10% increase in core income. At CITIFINANCIAL, receivables
growth of 23% and continued emphasis on expense discipline and credit
quality led to a 50% increase in income.
- Core income from the INSURANCE businesses rose 12% to $409 million.
TRAVELERS LIFE AND ANNUITY'S income increased 17% driven by 20% growth
in individual annuity volumes, higher net investment income, and lower
expenses. Income growth of 11% at PRIMERICA FINANCIAL SERVICES
reflected 42% higher mutual fund sales and increased net investment
income partly offset by continued spending for infrastructure,
including international expansion, compliance and sales support.
TRAVELERS PROPERTY CASUALTY PERSONAL LINES income increased 4%, as
incremental earnings from the minority purchase buyback and increased
net investment income were partly offset by increased loss trends.
- INTERNATIONAL income increased 42%. Income in EUROPE, MIDDLE EAST AND
AFRICA rose 26% in the quarter. Excluding the net currency translation
impact, income would have risen 47%. Revenue growth in the region of 2%
(14% excluding net currency translation) was led by volume increases in
lending products, including cards, and investment product sales. Income
growth of 69% in ASIA PACIFIC reflected 27% revenue growth, fueled by
cards (including the recent acquisition of Diners Club Japan), as well
as deposits and investment product revenues, which doubled from the
prior year. LATIN AMERICA income was unchanged in the quarter, although
excluding the net currency translation impact, income would have risen
9%. Improving credit loss trends and increased earnings from Credicard,
the company's one third owned Brazilian credit card subsidiary were
offset by the reduction in interest income related to Confia.
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
2ND QUARTER CORE INCOME: $1.54 BILLION, UP 24% FROM $1.24 BILLION
Global Corporate and Investment Bank earnings for the second quarter of 2000
rose 24% from the comparable period last year, with revenue growth of 13%. The
successful integration of the Citibank and Salomon Smith Barney platforms was
underscored by the business' market share gains, as Salomon Smith Barney
achieved the #1 ranking in global debt and equity underwriting in the quarter,
and was #1 in all international debt issuance year to date. The business made
substantial progress in Europe, with the formation of Schroder Salomon Smith
Barney, ranking #4 in European mergers and acquisitions and equity underwriting
year to date. In addition, Nikko Salomon Smith Barney, the company's Japanese
joint venture, ranked #1 in equity underwriting and #1 in mergers and
acquisitions for the first half of 2000. During the quarter, the Global
Corporate and Investment Bank also increased its market share in a key emerging
market through Citibank's acquisition of 66% of Bank Handlowy, Poland's largest
corporate bank, and strengthened its position in the U.S. leasing market through
Citibank's purchase of Copelco, a leader in small ticket vendor leasing. The
Global Corporate and Investment Bank also won in more than 50 categories in the
recent Euromoney Awards for Excellence, including Best Bank in Asia, Best
Foreign Bank in the Eurozone and Best Corporate Bond Firm.
- SALOMON SMITH BARNEY'S core income was $641 million for the second
quarter, 5% above the second quarter of 1999. Revenues increased 13%
from the second quarter of 1999, with higher commissions and investment
banking revenues and a record level of revenue from the portion of
asset management revenue retained in the segment. Principal
transactions revenue fell 9% from the prior year period, and was down
$224 million from the first quarter of 2000, primarily as a result of
less robust conditions in fixed income markets. The Private Client
business continued to perform well, generating 18% growth in income,
and with the value of client assets rising 21% to $1.032 trillion, with
assets under fee-based management increasing 36%. More than 1.4 million
accounts, or 20% of total accounts, now use ACCESS, Salomon Smith
Barney's web site and on-line trading product. Expenses increased 19%
over the 1999 quarter due to increased compensation expense and the
Schroders acquisition. Income also reflected the company's 20.7%
ownership in Nikko Securities.
- THE GLOBAL CORPORATE BANK reported core income of $629 million, up 45%
from the 1999 second quarter. Excluding the Bank Handlowy and Copelco
acquisitions, double-digit growth in Transaction Services and improved
trading-related revenues combined to produce a 17% improvement in
revenues. On the same basis, expenses rose 3% as investment spending in
the emerging markets and higher incentive compensation were offset by
lower Year 2000 expenses, the impact of previous restructuring actions,
and ongoing expense initiatives. Net write-offs rose $20 million to
$131 million, reflecting higher write-offs in North America and Latin
America.
- Continued pricing improvements in the middle market segment, higher net
investment income, and the purchase of the minority interest led to a
33% increase in core income for TRAVELERS PROPERTY CASUALTY COMMERCIAL
LINES. Higher net written premiums reflected stronger pricing and the
impact of the Reliance Surety acquisition which closed in the second
quarter.
<PAGE>
GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING
2ND QUARTER CORE INCOME: $172 MILLION, UP 11% FROM $155 MILLION
During the quarter, Citigroup's Global Investment Management and Private Banking
Group continued to make substantial progress in expanding its distribution of
its products through proprietary and third party channels globally. The Group
also enhanced its position in the growing retirement services market, with the
purchase of additional interest in Siembra in Argentina in the second quarter,
and by launching the CitiStreet joint venture. Revenues for the quarter
increased 24%.
- ASSET MANAGEMENT income rose 11% to $93 million in the quarter.
Revenues increased 34%, as the impact of increased ownership in Siembra
and Garante and growth in its core business more than offset higher
expenses related to continued investment in the global sales and
marketing and research platform. Assets under management rose 8% over
the prior year period, to $389 billion.
Sales of the Group's long-term mutual funds and managed account
products through the Salomon Smith Barney retail channel rose 13% to
$4.8 billion, representing 38% of all such products distributed through
the retail channel. Primerica sold $469 million of the Group's U.S.
money and mutual funds in the quarter, equal to 46% of all Primerica's
sales. The Group also sold $3.5 billion in mutual and money funds
through Citibank's global consumer channels, raising $506 million in
Europe and $322 million in Japan. In the U.S., successful mutual fund
launches included the Premier Selections funds, which added $755
million in sales during the quarter. Institutional client assets rose
6% to $153 billion, including $6 billion in assets raised from Global
Corporate and Investment Bank customers in the second quarter.
- Core income for the PRIVATE BANK rose 11% to $79 million. Client
business volumes, which include loans, deposits and client assets under
fee-based management and custody accounts, rose 19% to $149 billion.
Revenue growth of 12% was driven by increased volumes in discretionary
investment management as well as in banking and lending products.
Expenses grew 13%, as the Private Bank continued to invest in its sales
processes, adding 85 bankers and product specialists year to date.
CORPORATE/OTHER, E-CITI, AND INVESTMENT ACTIVITIES
The increased loss from CORPORATE/OTHER in the quarter primarily reflected
higher funding costs. Net investment in E-CITI, the remainder of
internet-related development activities not allocated to the individual
businesses, rose $6 million to $17 million. Income from INVESTMENT ACTIVITIES
was $234 million in the quarter, up 44% over the prior year although down
substantially from the first quarter.
# # #
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 SECOND QUARTER % SIX MONTHS %
------------------------------ ------------------------------
(IN MILLIONS OF DOLLARS) 2000 1999 Change 2000 1999 Change
<S> <C> <C> <C> <C> <C> <C>
------------------------------------------------------ --------------- -------------- ------ -------------- --------------- -------
GLOBAL CONSUMER
Citibanking North America.......................... $ 138 $ 102 35 $ 275 $ 173 59
Mortgage Banking................................... 66 52 27 127 111 14
North America Cards................................ 308 279 10 604 557 8
CitiFinancial...................................... 117 78 50 229 149 54
--------------- -------------- -------------- ---------------
Banking/Lending 629 511 23 1,235 990 25
--------------- -------------- -------------- ---------------
Travelers Life and Annuity......................... 202 173 17 389 320 22
Primerica Financial Services....................... 125 113 11 244 223 9
Personal Lines..................................... 82 79 4 157 162 (3)
--------------- -------------- -------------- --------------
Insurance 409 365 12 790 705 12
--------------- -------------- -------------- ---------------
Europe, Middle East, and Africa.................... 92 73 26 194 141 38
Asia Pacific....................................... 183 108 69 357 210 70
Latin America...................................... 41 41 - 111 88 26
--------------- -------------- -------------- ---------------
Total International 316 222 42 662 439 51
--------------- -------------- -------------- ---------------
e-Consumer (A)........................................ (46) (28) (64) (115) (51) (125)
Other Consumer........................................ (28) (23) (22) (56) (39) (44)
--------------- -------------- -------------- ---------------
TOTAL GLOBAL CONSUMER................................. 1,280 1,047 22 2,516 2,044 23
--------------- -------------- -------------- ---------------
GLOBAL CORPORATE AND INVESTMENT BANK
Salomon Smith Barney.................................. 641 610 5 1,598 1,258 27
--------------- -------------- -------------- ---------------
Emerging Markets 370 286 29 762 601 27
Global Relationship Banking 259 147 76 499 334 49
--------------- -------------- -------------- ---------------
Total Global Corporate Bank 629 433 45 1,261 935 35
--------------- -------------- -------------- ---------------
Commercial Lines Insurance............................ 267 201 33 507 390 30
--------------- -------------- -------------- ---------------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK............ 1,537 1,244 24 3,366 2,583 30
--------------- -------------- -------------- ---------------
GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING
SSB Citi Asset Management Group....................... 93 84 11 185 165 12
Global Private Bank................................... 79 71 11 160 126 27
--------------- -------------- -------------- ---------------
TOTAL GLOBAL INVESTMENT MANAGEMENT AND PRIVATE
BANKING............................................... 172 155 11 345 291 19
--------------- -------------- -------------- ---------------
Corporate/Other....................................... (199) (120) (66) (455) (261) (74)
e-Citi (A)............................................ (17) (11) (55) (31) (16) (94)
--------------- -------------- -------------- ---------------
TOTAL CORPORATE/OTHER................................. (216) (131) (65) (486) (277) (75)
--------------- -------------- -------------- ---------------
INVESTMENT ACTIVITIES................................. 234 162 44 868 251 246
--------------- -------------- -------------- ---------------
CORE INCOME........................................... 3,007 2,477 21 6,609 4,892 35
--------------- -------------- -------------- ---------------
Restructuring-Related Items -- After Tax (B)........ (2) (29) 93 (14) 45 NM
Cumulative Effect of Accounting Changes (C)........... - - - - (127) NM
--------------- -------------- -------------- ---------------
NET INCOME............................................ $3,005 $2,448 23 $6,595 $4,810 37
------------------------------------------------------ --------------- -------------- ------ -------------- ---------------
DILUTED EARNINGS PER SHARE:
CORE INCOME........................................... $0.87 $0.71 23 $1.91 $1.40 36
NET INCOME............................................ 0.87 0.70 24 1.90 1.38 38
------------------------------------------------------ --------------- -------------- ------ -------------- -----------------------
SUPPLEMENTAL INFORMATION:
<PAGE>
Worldwide Cards....................................... $429 $328 31 $813 $663 23
------------------------------------------------------ --------------- -------------- ------ -------------- --------------- -------
</TABLE>
(A) Previously shown as a part of e-Citi and presented in the Global
Consumer segment.
(B) The restructuring-related items in 2000 included a credit for the
reversal of prior charges of $31 million, $19 million of accelerated
depreciation, and $14 million of charges in the second quarter and $12
million of accelerated depreciation in the first quarter. The 1999
second quarter included $29 million of accelerated depreciation and the
1999 first quarter included a credit for reversal of prior charges of
$125 million and $51 million of accelerated depreciation.
(C) Refers to adoption of Statement of Position "SOP" 97-3, "Accounting by
Insurance and Other Enterprises for Insurance-Related Assessments" of
($135) million; adoption of SOP 98-7, "Deposit Accounting: Accounting
for Insurance and Reinsurance Contracts That Do Not Transfer Insurance
Risk" of $23 million; and the adoption of SOP 98-5, "Reporting on the
Costs of Start-Up Activities" of ($15) million.
NM Not meaningful.
--------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------- ----------------------------- ------- ------------------------------ -------
SUPPLEMENTAL GCIB DISCLOSURE SECOND QUARTER % SIX 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 842 755 12 1,904 1,581 20
Transaction Services 130 40 225 223 79 182
Private Client 265 225 18 641 436 47
Commercial Lines Insurance 267 201 33 507 390 30
Other 33 23 43 91 97 (6)
--------------- -------------- -------------- ---------------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK.... 1,537 1,244 24 3,366 2,583 30
---------------------------------------------- --------------- -------------- ------- -------------- --------------- -------
</TABLE>
Five quarters of history are available on page 29 of the Quarterly Financial
Data Supplement.
----------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
CITIGROUP - QUARTERLY FINANCIAL DATA SUPPLEMENT
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 and Africa 11
Asia Pacific 12
Latin America 13
Other Consumer 14
GLOBAL CORPORATE AND INVESTMENT BANK:
Salomon Smith Barney 15 & 16
Total Global Corporate Bank 17
Emerging Markets 17
Global Relationship 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
Managed Assets and Insurance Investments 27
Insurance Investment Portfolio 27
Worldwide Cards Supplemental Data 28
Global Corporate and Investment Bank - Supplemental Product and Regional Results 29
CITICORP SUPPLEMENTAL DATA 30
</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 1Q 2Q
1999 1999 1999 1999 2000 2000
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
CORE INCOME $ 2,415 $ 2,477 $ 2,450 $ 2,605 $ 3,602 $ 3,007
Restructuring - Related Items 74 (29) (15) 17 (12) (2)
Cumulative Effect of Accounting Changes (127) - - - - -
-------- -------- -------- -------- -------- --------
Net Income $ 2,362 $ 2,448 $ 2,435 $ 2,622 $ 3,590 $ 3,005
======== ======== ======== ======== ======== ========
BASIC EARNINGS PER SHARE:
Core Income $ 0.71 $ 0.73 $ 0.72 $ 0.77 $ 1.07 $ 0.89
======== ======== ======== ======== ======== ========
Net Income $ 0.70 $ 0.72 $ 0.72 $ 0.78 $ 1.07 $ 0.89
======== ======== ======== ======== ======== ========
Weighted Average Common Shares
Applicable To Basic EPS 3,340.2 3,332.7 3,332.0 3,330.9 3,331.6 3,332.7
======== ======== ======== ======== ======== ========
Preferred Dividends - Basic $ 40 $ 38 $ 38 $ 33 $ 30 $ 29
======== ======== ======== ======== ======== ========
DILUTED EARNINGS PER SHARE:
Core Income $ 0.69 $ 0.71 $ 0.70 $ 0.75 $ 1.04 $ 0.87
======== ======== ======== ======== ======== ========
Net Income $ 0.68 $ 0.70 $ 0.70 $ 0.75 $ 1.04 $ 0.87
======== ======== ======== ======== ======== ========
Core Diluted Earnings Per Share Excluding
Goodwill Amortization $ 0.70 $ 0.72 $ 0.71 $ 0.76 $ 1.05 $ 0.89
======== ======== ======== ======== ======== ========
Adjusted Weighted Average Common Shares
Applicable To Diluted EPS 3,440.0 3,450.3 3,440.2 3,443.6 3,435.7 3,440.2
======== ======== ======== ======== ======== ========
Preferred Dividends - Diluted $ 37 $ 35 $ 34 $ 33 $ 30 $ 29
======== ======== ======== ======== ======== ========
COMMON SHARES OUTSTANDING, AT PERIOD END 3,380.3 3,376.7 3,366.8 3,367.5 3,370.6 3,369.8
======== ======== ======== ======== ======== ========
TIER 1 CAPITAL RATIO 8.86% 9.37% 9.59% 9.65% 9.78% 8.6% *
======== ======== ======== ======== ======== ========
TOTAL CAPITAL RATIO 11.54% 12.07% 12.28% 12.33% 12.47% 11.1% *
======== ======== ======== ======== ======== ========
LEVERAGE RATIO 6.24% 6.38% 6.62% 6.80% 6.73% 6.0% *
======== ======== ======== ======== ======== ========
TOTAL ASSETS, AT PERIOD END (IN BILLIONS) $ 690.5 $ 689.1 $ 686.8 $ 715.7 $ 738.2 $ 792 *
======== ======== ======== ======== ======== ========
STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS) $ 43.8 $ 44.9 $ 46.3 $ 48.9 $ 50.3 $ 51.6 *
======== ======== ======== ======== ======== ========
STOCKHOLDERS' EQUITY AND TRUST SECURITIES,
AT PERIOD END (IN BILLIONS) $ 48.8 $ 49.8 $ 51.2 $ 53.8 $ 55.2 $ 56.5 *
======== ======== ======== ======== ======== ========
BOOK VALUE PER SHARE, AT PERIOD END $ 12.35 $ 12.68 $ 13.14 $ 13.95 $ 14.40 $ 14.78 *
======== ======== ======== ======== ======== ========
RETURN ON COMMON EQUITY (NET INCOME) 23.1% 22.9% 22.0% 22.8% 29.8% 24.7% *
======== ======== ======== ======== ======== ========
RETURN ON COMMON EQUITY (CORE INCOME) 23.6% 23.2% 22.1% 22.6% 29.9% 24.8% *
======== ======== ======== ======== ======== ========
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
----------------- -------- -------- --------------------
<S> <C> <C> <C> <C>
CORE INCOME 21% $ 4,892 $ 6,609 35%
Restructuring - Related Items 45 (14)
Cumulative Effect of Accounting Changes (127) -
-------- --------
Net Income 23% $ 4,810 $ 6,595 37%
======== ========
BASIC EARNINGS PER SHARE:
Core Income 22% $ 1.44 $ 1.97 37%
======== ========
Net Income 24% $ 1.42 $ 1.96 38%
======== ========
Weighted Average Common Shares
Applicable To Basic EPS 3,336.4 3,332.1
======== ========
Preferred Dividends - Basic $ 78 $ 59
======== ========
DILUTED EARNINGS PER SHARE:
Core Income 23% $ 1.40 $ 1.91 36%
======== ========
Net Income 24% $ 1.38 $ 1.90 38%
======== ========
Core Diluted Earnings Per Share Excluding
Goodwill Amortization 24% $ 1.42 $ 1.94 37%
======== ========
Adjusted Weighted Average Common Shares
Applicable To Diluted EPS 3,445.2 3,438.0
======== ========
Preferred Dividends - Diluted $ 72 $ 59
======== ========
COMMON SHARES OUTSTANDING, AT PERIOD END 3,376.7 3,369.8
======== ========
TIER 1 CAPITAL RATIO 9.37% 8.6% *
======== ========
TOTAL CAPITAL RATIO 12.07% 11.1% *
======== ========
LEVERAGE RATIO 6.38% 6.0% *
======== ========
TOTAL ASSETS, AT PERIOD END (IN BILLIONS) $ 689.1 $ 792 *
======== ========
STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS) $ 44.9 $ 51.6 *
======== ========
STOCKHOLDERS' EQUITY AND TRUST SECURITIES,
AT PERIOD END (IN BILLIONS) $ 49.8 $ 56.5 *
======== ========
BOOK VALUE PER SHARE, AT PERIOD END $ 12.68 $ 14.78 *
======== ========
RETURN ON COMMON EQUITY (NET INCOME) 23.0% 27.2% *
======== ========
RETURN ON COMMON EQUITY (CORE INCOME) 23.4% 27.3% *
======== ========
</TABLE>
* Preliminary
Page 1
<PAGE>
CITIGROUP -- SEGMENT NET REVENUES
(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>
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America $ 506 $ 517 $ 526 $ 556 $ 575 $ 570
Mortgage Banking 169 183 199 196 204 206
North America Cards 1,961 1,980 1,971 2,042 1,996 1,969
CitiFinancial 361 396 421 441 462 474
--------- --------- --------- --------- --------- ---------
Total Banking / Lending 2,997 3,076 3,117 3,235 3,237 3,219
INSURANCE
Travelers Life and Annuity 771 867 869 887 1,010 983
Primerica Financial Services 432 443 444 456 472 479
Personal Lines 983 1,005 1,018 1,037 1,027 1,041
--------- --------- --------- --------- --------- ---------
Total Insurance 2,186 2,315 2,331 2,380 2,509 2,503
INTERNATIONAL
Europe, Middle East and Africa 561 563 607 597 593 576
Asia Pacific 517 543 580 606 683 691
Latin America 464 497 502 512 519 466
--------- --------- --------- --------- --------- ---------
Total International 1,542 1,603 1,689 1,715 1,795 1,733
E-CONSUMER * 24 23 27 34 31 28
OTHER 49 39 29 9 11 (10)
--------- --------- --------- --------- --------- ---------
TOTAL GLOBAL CONSUMER 6,798 7,056 7,193 7,373 7,583 7,473
--------- --------- --------- --------- --------- ---------
GLOBAL CORPORATE AND INVESTMENT BANK:
Salomon Smith Barney 3,341 3,269 2,791 3,279 4,186 3,693
GLOBAL CORPORATE BANK
Emerging Markets 1,143 1,096 1,055 1,050 1,238 1,270
Global Relationship Banking 1,118 1,039 1,021 1,034 1,208 1,266
--------- --------- --------- --------- --------- ---------
Total Global Corporate Bank 2,261 2,135 2,076 2,084 2,446 2,536
Commercial Lines 1,534 1,558 1,578 1,595 1,568 1,626
--------- --------- --------- --------- --------- ---------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 7,136 6,962 6,445 6,958 8,200 7,855
--------- --------- --------- --------- --------- ---------
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
SSB Citi Asset Management Group
and Global Retirement Services 356 358 369 408 430 480
Global Private Bank 275 301 305 332 363 338
--------- --------- --------- --------- --------- ---------
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 631 659 674 740 793 818
--------- --------- --------- --------- --------- ---------
CORPORATE / OTHER (60) 6 (43) (100) (100) (157)
E-CITI * - (3) (7) (2) 11 (3)
--------- --------- --------- --------- --------- ---------
TOTAL CORPORATE / OTHER (60) 3 (50) (102) (89) (160)
INVESTMENT ACTIVITIES 153 270 311 356 1,016 387
--------- --------- --------- --------- --------- ---------
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL ADJUSTED NET REVENUES $ 14,658 $ 14,950 $ 14,573 $ 15,325 $ 17,503 $ 16,373
------------------------------------------------------------------------------------------------------------------------------------
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
----------------- --------- --------- -----------------------
<S> <C> <C> <C> <C>
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America 10% $ 1,023 $ 1,145 12%
Mortgage Banking 13% 352 410 16%
North America Cards (1%) 3,941 3,965 1%
CitiFinancial 20% 757 936 24%
--------- ---------
Total Banking / Lending 5% 6,073 6,456 6%
INSURANCE
Travelers Life and Annuity 13% 1,638 1,993 22%
Primerica Financial Services 8% 875 951 9%
Personal Lines 4% 1,988 2,068 4%
--------- ---------
Total Insurance 8% 4,501 5,012 11%
INTERNATIONAL
Europe, Middle East and Africa 2% 1,124 1,169 4%
Asia Pacific 27% 1,060 1,374 30%
Latin America (6%) 961 985 2%
--------- ---------
Total International 8% 3,145 3,528 12%
E-CONSUMER * 22% 47 59 26%
OTHER (126%) 88 1 (99%)
--------- ---------
TOTAL GLOBAL CONSUMER 6% 13,854 15,056 9%
--------- ---------
GLOBAL CORPORATE AND INVESTMENT BANK:
Salomon Smith Barney 13% 6,610 7,879 19%
GLOBAL CORPORATE BANK
Emerging Markets 16% 2,239 2,508 12%
Global Relationship Banking 22% 2,157 2,474 15%
--------- ---------
Total Global Corporate Bank 19% 4,396 4,982 13%
Commercial Lines 4% 3,092 3,194 3%
--------- ---------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 13% 14,098 16,055 14%
--------- ---------
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
SSB Citi Asset Management
Group and Global Retirement Services 34% 714 910 27%
Global Private Bank 12% 576 701 22%
--------- ---------
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 24% 1,290 1,611 25%
--------- ---------
CORPORATE / OTHER NM (54) (257) (376%)
E-CITI * - (3) 8 367%
--------- ---------
TOTAL CORPORATE / OTHER NM (57) (249) (337%)
INVESTMENT ACTIVITIES 43% 423 1,403 232%
--------- ---------
---------------------------------------------------------------------------------------------------------------------------------
TOTAL ADJUSTED NET REVENUES 10% $ 29,608 $ 33,876 14%
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Previously included as e-Citi within the Global Consumer business.
Page 2
<PAGE>
<TABLE>
<CAPTION>
CITIGROUP -- SEGMENT CORE INCOME
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q
1999 1999 1999 1999 2000 2000
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America $ 71 $ 102 $ 106 $ 116 $ 137 $ 138
Mortgage Banking 59 52 59 55 61 66
North America Cards 278 279 301 325 296 308
CitiFinancial 71 78 135 108 112 117
-------- -------- -------- -------- -------- --------
Total Banking / Lending 479 511 601 604 606 629
INSURANCE
Travelers Life and Annuity 147 173 168 135 187 202
Primerica Financial Services 110 113 114 115 119 125
Personal Lines 83 79 23 94 75 82
-------- -------- -------- -------- -------- --------
Total Insurance 340 365 305 344 381 409
INTERNATIONAL
Europe, Middle East and Africa 68 73 98 83 102 92
Asia Pacific 102 108 118 119 174 183
Latin America 47 41 53 82 70 41
-------- -------- -------- -------- -------- --------
Total International 217 222 269 284 346 316
E-CONSUMER * (23) (28) (31) (34) (69) (46)
OTHER (16) (23) (11) (24) (28) (28)
-------- -------- -------- -------- -------- --------
TOTAL GLOBAL CONSUMER 997 1,047 1,133 1,174 1,236 1,280
-------- -------- -------- -------- -------- --------
GLOBAL CORPORATE AND INVESTMENT BANK:
Salomon Smith Barney 648 610 432 664 957 641
GLOBAL CORPORATE BANK
Emerging Markets 315 286 301 256 392 370
Global Relationship Banking 187 147 143 164 240 259
-------- -------- -------- -------- -------- --------
Total Global Corporate Bank 502 433 444 420 632 629
Commercial Lines 189 201 255 200 240 267
-------- -------- -------- -------- -------- --------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 1,339 1,244 1,131 1,284 1,829 1,537
-------- -------- -------- -------- -------- --------
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
SSB Citi Asset Management Group
and Global Retirement Services 81 84 83 78 92 93
Global Private Bank 55 71 70 72 81 79
-------- -------- -------- -------- -------- --------
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 136 155 153 150 173 172
-------- -------- -------- -------- -------- --------
CORPORATE / OTHER (141) (120) (144) (203) (256) (199)
E-CITI * (5) (11) (17) (13) (14) (17)
-------- -------- -------- -------- -------- --------
TOTAL CORPORATE / OTHER (146) (131) (161) (216) (270) (216)
INVESTMENT ACTIVITIES 89 162 194 213 634 234
-------- -------- -------- -------- -------- --------
---------------------------------------------------------------------------------------------------------------------------
TOTAL CORE INCOME $ 2,415 $ 2,477 $ 2,450 $ 2,605 $ 3,602 $ 3,007
---------------------------------------------------------------------------------------------------------------------------
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
----------------- ------- -------- -----------------------
<S> <C> <C> <C> <C>
GLOBAL CONSUMER:
BANKING / LENDING
Citibanking North America 35% $ 173 $ 275 59%
Mortgage Banking 27% 111 127 14%
North America Cards 10% 557 604 8%
CitiFinancial 50% 149 229 54%
------- --------
Total Banking / Lending 23% 990 1,235 25%
INSURANCE
Travelers Life and Annuity 17% 320 389 22%
Primerica Financial Services 11% 223 244 9%
Personal Lines 4% 162 157 (3%)
------- --------
Total Insurance 12% 705 790 12%
INTERNATIONAL
Europe, Middle East and Africa 26% 141 194 38%
Asia Pacific 69% 210 357 70%
Latin America - 88 111 26%
------- --------
Total International 42% 439 662 51%
E-CONSUMER * (64%) (51) (115) (125%)
OTHER (22%) (39) (56) (44%)
------- --------
TOTAL GLOBAL CONSUMER 22% 2,044 2,516 23%
------- --------
GLOBAL CORPORATE AND INVESTMENT BANK:
Salomon Smith Barney 5% 1,258 1,598 27%
GLOBAL CORPORATE BANK
Emerging Markets 29% 601 762 27%
Global Relationship Banking 76% 334 499 49%
------- --------
Total Global Corporate Bank 45% 935 1,261 35%
Commercial Lines 33% 390 507 30%
------- --------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 24% 2,583 3,366 30%
------- --------
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING:
SSB Citi Asset Management Group 11% 165 185 12%
and Global Retirement Services
Global Private Bank 11% 126 160 27%
------- --------
TOTAL GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING 11% 291 345 19%
------- --------
CORPORATE / OTHER (66%) (261) (455) (74%)
E-CITI * (55%) (16) (31) (94%)
------- --------
TOTAL CORPORATE / OTHER (65%) (277) (486) (75%)
INVESTMENT ACTIVITIES 44% 251 868 246%
------- --------
----------------------------------------------------------------------------------------------------------------------------------
TOTAL CORE INCOME 21% $ 4,892 $ 6,609 35%
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Previously included as e-Citi within the Global Consumer business.
Page 3
<PAGE>
<TABLE>
<CAPTION>
GLOBAL CONSUMER - BANKING/LENDING
CITIBANKING NORTH AMERICA
(In millions of dollars)
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 $ 517 $ 526 $ 556 $ 575 $ 570
Adjusted Operating Expenses 360 324 332 344 336 331
Provision for Loan Losses 23 15 11 15 9 7
-------- -------- -------- -------- -------- --------
Core Income Before Taxes 123 178 183 197 230 232
Income Taxes 52 76 77 81 93 94
-------- -------- -------- -------- -------- --------
Core Income $ 71 $ 102 $ 106 $ 116 $ 137 $ 138
======== ======== ======== ======== ======== ========
Average Assets (in billions of dollars) $ 10 $ 10 $ 9 $ 9 $ 9 $ 9
======== ======== ======== ======== ======== ========
Return on Assets 2.88% 4.09% 4.67% 5.11% 6.12% 6.17%
======== ======== ======== ======== ======== ========
Average Loans (in billions of dollars) $ 7.6 $ 7.6 $ 7.4 $ 7.3 $ 7.2 $ 7.1
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 26.6% 26.6% 25.3% 25.9% 27.4% 26.5%
Net Credit Loss Ratio 1.29% 1.21% 1.05% 1.25% 0.98% 0.86%
Loans 90+Days Past Due:
In millions of dollars $ 103 $ 92 $ 64 $ 55 $ 48 $ 33
% 1.37% 1.22% 0.88% 0.76% 0.67% 0.46%
Proprietary Mutual Funds / UIT $ 186 $ 180 $ 126 $ 232 $ 373 $ 124
Proprietary Money Market Funds 449 393 469 584 1,017 677
-------- -------- -------- -------- -------- --------
Total Proprietary Funds 635 573 595 816 1,390 801
Third Party Funds 668 724 550 630 966 608
-------- -------- -------- -------- -------- --------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $ 1,303 $ 1,297 $ 1,145 $ 1,446 $ 2,356 $ 1,409
======== ======== ======== ======== ======== ========
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 52
Proprietary ATMs 2,163 2,063 2,050 2,050 2,050 2,047
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
----------------- -------- -------- ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 10% $ 1,023 $ 1,145 12%
Adjusted Operating Expenses 2% 684 667 (2%)
Provision for Loan Losses (53%) 38 16 (58%)
-------- --------
Core Income Before Taxes 30% 301 462 53%
Income Taxes 24% 128 187 46%
-------- --------
Core Income 35% $ 173 $ 275 59%
======== ========
Average Assets (in billions of dollars) (10%) $ 10 $ 9 (10%)
======== ========
Return on Assets 3.49% 6.14%
======== ========
Average Loans (in billions of dollars) (7%) $ 7.6 $ 7.2 (5%)
Average Customer Deposits (in billions of dollars) 5% $ 41.9 $ 43.9 5%
EOP Accounts (in millions) 7%
Non-Interest Revenue as % of Total Revenues 26.7% 27.0%
Net Credit Loss Ratio
Loans 90+Days Past Due:
In millions of dollars (64%)
%
Proprietary Mutual Funds / UIT (31%) $ 366 $ 497 36%
Proprietary Money Market Funds 72% 842 1,694 101%
-------- --------
Total Proprietary Funds 40% 1,208 2,191 81%
Third Party Funds (16%) 1,392 1,574 13%
-------- --------
Mutual Fund / UIT Sales at NAV 9% $ 2,600 $ 3,765 45%
(in millions of dollars) ======== ========
Variable Annuity Premiums & Deposits 80% $ 337 $ 681 102%
(in millions of dollars)
Branches (1%)
ATM-only locations (2%)
Proprietary ATMs (1%)
</TABLE>
Page 4
<PAGE>
GLOBAL CONSUMER - BANKING/LENDING
MORTGAGE BANKING (1)
(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 $ 169 $ 183 $ 199 $ 196 $ 204 $ 206
Adjusted Operating Expenses 61 84 93 91 91 94
Provision for Loan Losses 3 5 2 7 5 (4)
------- ------- ------- ------- ------- -------
Core Income Before Taxes and Minority Interest 105 94 104 98 108 116
Income Taxes 41 37 41 38 42 44
Minority Interest, Net of Tax 5 5 4 5 5 6
======= ======= ======= ======= ======= =======
Core Income $ 59 $ 52 $ 59 $ 55 $ 61 $ 66
======= ======= ======= ======= ======= =======
Average Assets (in billions of dollars) $ 28 $ 29 $ 29 $ 31 $ 33 $ 35
======= ======= ======= ======= ======= =======
Return on Assets 0.85% 0.72% 0.81% 0.70% 0.74% 0.76%
======= ======= ======= ======= ======= =======
EOP ACCOUNTS OWNED AND SERVICED:
Student Loans 2.2 2.3 2.5 2.7 2.8 3.0
Mortgages 0.5 0.6 0.6 0.6 0.6 0.8
Consumer Finance 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
======= ======= ======= ======= ======= =======
TOTAL OWNED AND SERVICED AVERAGE LOANS
(IN BILLION OF DOLLARS):
Mortgages (2) $ 16.4 $ 17.0 $ 17.2 $ 17.6 $ 18.9 $ 20.3
Student Loans 9.2 9.2 9.3 10.6 11.6 12.3
Consumer Finance 1.0 1.1 0.6 0.4 0.4 0.5
------- ------- ------- ------- ------- -------
Average Loans - On Balance Sheet 26.6 27.3 27.1 28.6 30.9 33.1
Other Serviced Loans 40.5 46.4 51.0 52.5 54.1 59.9
------- ------- ------- ------- ------- -------
Total $ 67.1 $ 73.7 $ 78.1 $ 81.1 $ 85.0 $ 93.0
======= ======= ======= ======= ======= =======
Mortgage Originations (in billions of dollars) $ 3.8 $ 4.9 $ 4.7 $ 4.9 $ 3.4 $ 4.8
Student Loan Originations $ 0.7 $ 0.3 $ 0.7 $ 0.6 $ 1.0 $ 0.7
Consumer Finance Originations $ 0.2 $ 0.3 $ 0.2 $ 0.2 $ 0.2 $ 0.3
Net Credit Loss Ratio 0.20% 0.17% 0.12% 0.15% 0.14% 0.05%
Loans 90+ Days Past Due:
In millions of dollars $ 610 $ 575 $ 629 $ 696 $ 719 $ 709
% 2.29% 2.09% 2.28% 2.31% 2.29% 1.98%
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
----------------- ------- -------- ------------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 13% $ 352 $ 410 16%
Adjusted Operating Expenses 12% 145 185 28%
Provision for Loan Losses (180%) 8 1 (88%)
------- -------
Core Income Before Taxes and Minority Interest 23% 199 224 13%
Income Taxes 19% 78 86 10%
Minority Interest, Net of Tax 20% 10 11 10%
======= =======
Core Income 27% $ 111 $ 127 14%
======= =======
Average Assets (in billions of dollars) 21% $ 29 $ 34 17%
======= =======
Return on Assets 0.77% 0.75%
======= =======
EOP ACCOUNTS OWNED AND SERVICED:
Student Loans 30%
Mortgages 33%
Consumer Finance -
Total 30%
TOTAL OWNED AND SERVICED AVERAGE LOANS
(IN BILLION OF DOLLARS):
Mortgages (2) 19% $ 16.7 $ 19.6 17%
Student Loans 34% 9.2 11.9 29%
Consumer Finance (55%) 1.1 0.5 (55%)
------- -------
Average Loans - On Balance Sheet 21% 27.0 32.0 19%
Other Serviced Loans 29% 43.5 57.0 31%
------- -------
Total 26% $ 70.5 $ 89.0 26%
======= =======
Mortgage Originations (in billions of dollars) (2%) $ 8.7 $ 8.2 (6%)
Student Loan Originations 133% $ 1.0 $ 1.7 70%
Consumer Finance Originations - $ 0.5 $ 0.5 -
Net Credit Loss Ratio
Loans 90+ Days Past Due:
In millions of dollars 23%
%
</TABLE>
(1) Includes Student Loans.
(2) Includes loans held for sale.
Page 5
<PAGE>
<TABLE>
<CAPTION>
GLOBAL CONSUMER - BANKING/LENDING
NORTH AMERICA CARDS (1)
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q 2Q
1999 1999 1999 1999 2000 2000
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Adjusted Revenues, Net of Interest Expense $ 1,961 $ 1,980 $ 1,971 $ 2,042 $ 1,996 $ 1,969
Adjusted Operating Expenses 710 712 697 726 728 720
Adjusted Provision for Loan Losses (2) 811 825 797 801 799 758
-------- -------- -------- -------- -------- --------
Core Income Before Taxes 440 443 477 515 469 491
Income Taxes 162 164 176 190 173 183
-------- -------- -------- -------- -------- --------
Core Income $ 278 $ 279 $ 301 $ 325 $ 296 $ 308
======== ======== ======== ======== ======== ========
Managed Average Assets (in billions of dollars) $ 73 $ 75 $ 76 $ 76 $ 78 $ 81
======== ======== ======== ======== ======== ========
Return on Managed Assets 1.54% 1.49% 1.57% 1.70% 1.53% 1.53%
======== ======== ======== ======== ======== ========
U.S. BANKCARDS DATA :
(in billions of dollars)
Net Interest Revenue (in millions of dollars) (3) $ 1,501 $ 1,455 $ 1,470 $ 1,480 $ 1,460 $ 1,393
% of Average Managed Loans 9.04% 8.40% 8.37% 8.37% 8.12% 7.45%
Risk Adjusted Margin (in millions of dollars) (4) $ 1,071 $ 1,076 $ 1,098 $ 1,162 $ 1,101 $ 1,125
% of Average Managed Loans 6.45% 6.21% 6.25% 6.57% 6.13% 6.02%
Adjusted Operating Expenses as % of
Average Managed Loans 3.79% 3.67% 3.53% 3.68% 3.58% 3.44%
End of Period Managed Receivables $ 69.4 $ 70.3 $ 70.7 $ 74.2 $ 73.3 $ 79.1
Total EOP Open Accounts (in millions) 41.4 41.1 40.6 40.6 40.8 42.1
Total Sales $ 36.8 $ 40.8 $ 40.9 $ 43.8 $ 42.3 $ 48.4
END OF PERIOD LOANS:
On Balance Sheet $ 19.4 $ 20.0 $ 19.1 $ 22.7 $ 23.0 $ 28.6
Securitized 46.7 47.4 48.5 49.0 48.0 44.8
Held for Sale 2.9 2.8 2.5 2.0 2.0 5.0
-------- -------- -------- -------- -------- --------
Total $ 69.0 $ 70.2 $ 70.1 $ 73.7 $ 73.0 $ 78.4
======== ======== ======== ======== ======== ========
AVERAGE LOANS:
On Balance Sheet $ 20.2 $ 20.0 $ 19.3 $ 19.5 $ 22.1 $ 26.4
Securitized 44.3 46.7 47.9 48.6 48.2 45.8
Held for Sale 2.9 2.8 2.5 2.0 2.0 3.0
-------- -------- -------- -------- -------- --------
Total $ 67.4 $ 69.5 $ 69.7 $ 70.1 $ 72.3 $ 75.2
======== ======== ======== ======== ======== ========
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
On Balance Sheet $ 196 $ 233 $ 221 $ 224 $ 263 $ 271
Securitized 556 541 525 537 499 441
Held for Sale 32 29 27 22 20 28
-------- -------- -------- -------- -------- --------
Total $ 784 $ 803 $ 773 $ 783 $ 782 $ 740
======== ======== ======== ======== ======== ========
Coincident Net Credit Loss Ratio 4.72% 4.63% 4.40% 4.43% 4.35% 3.96%
12 Month Lagged Net Credit Loss Ratio (5) 5.34% 5.12% 4.77% 4.59% 4.36% 4.19%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 1,007 $ 954 $ 995 $ 1,061 $ 1,058 $ 922
% 1.46% 1.36% 1.42% 1.44% 1.45% 1.18%
YTD 2Q 2000 VS. YTD YTD YTD 2Q 2000
2Q 1999 INCREASE/ 2Q 2Q YTD 2 Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
------------------ -------- -------- ---------------------
<S> <C> <C> <C> <C>
Adjusted Revenues, Net of Interest Expense (1%) $ 3,941 $ 3,965 1%
Adjusted Operating Expenses 1% 1,422 1,448 2%
Adjusted Provision for Loan Losses (2) (8%) 1,636 1,557 (5%)
-------- --------
Core Income Before Taxes 11% 883 960 9%
Income Taxes 12% 326 356 9%
-------- --------
Core Income 10% $ 557 $ 604 8%
======== ========
Managed Average Assets (in billions of dollars) 8% $ 74 $ 80 8%
======== ========
Return on Managed Assets 1.52% 1.52%
======== ========
U.S. BANKCARDS DATA :
(in billions of dollars)
Net Interest Revenue (in millions of dollars) (3) (4%) $ 2,956 $ 2,853
% of Average Managed Loans 8.71% 7.78%
Risk Adjusted Margin (in millions of dollars) (4) 5% $ 2,147 $ 2,226
% of Average Managed Loans 6.33% 6.07%
Adjusted Operating Expenses as % of 3.73% 3.51%
Average Managed Loans
End of Period Managed Receivables 13%
Total EOP Open Accounts (in millions) 2%
Total Sales 19% $ 77.6 $ 90.7
END OF PERIOD LOANS:
On Balance Sheet 43%
Securitized (5%)
Held for Sale 79%
Total 12%
AVERAGE LOANS:
On Balance Sheet 32% $ 20.1 $ 24.2
Securitized (2%) $ 45.5 $ 47.0
Held for Sale 7% $ 2.9 $ 2.5
Total 8% $ 68.5 $ 73.7
======== ========
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
On Balance Sheet 16% $ 429 $ 534
Securitized (18%) 1,097 940
Held for Sale (3%) 61 48
-------- --------
Total (8%) $ 1,587 $ 1,522
======== ========
Coincident Net Credit Loss Ratio
12 Month Lagged Net Credit Loss Ratio (5)
LOANS 90+ DAYS PAST DUE:
In millions of dollars (3%)
%
</TABLE>
(1) Includes U.S. Bankcards, North America Diners Club, and Canada Bankcards.
(2) On a managed basis.
(3) Includes delinquency and other risk-based charges.
(4) Risk Adjusted Margin is adjusted revenues less net credit losses.
(5) Adjusted for acquisitions.
Page 6
<PAGE>
GLOBAL CONSUMER - BANKING/LENDING
CITIFINANCIAL
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q
1999 1999 1999 1999 2000
---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense* $ 361 $ 396 $ 421 $ 441 $ 462
Adjusted Operating Expenses 144 154 133 186 188
Provision for Benefits, Claims, and Credit Losses 104 117 77 87 97
---------- ----------- ----------- ----------- -----------
Core Income Before Taxes 113 125 211 168 177
Income Taxes 42 47 76 60 65
========== =========== =========== =========== ===========
Core Income $ 71 $ 78 $ 135 $ 108 $ 112
========== =========== =========== =========== ===========
Average Assets (in billions of dollars) $ 14 $ 15 $ 16 $ 18 $ 18
========== =========== =========== =========== ===========
Return on Assets 2.06% 2.09% 3.35% 2.38% 2.50%
========== =========== =========== =========== ===========
NET RECEIVABLES:
Real estate-secured loans (1) $ 7,179.5 $ 7,699.2 $ 8,439.6 $ 9,031.6 $ 9,354.6
Personal loans (2) 4,647.2 4,886.2 5,102.5 5,319.7 5,408.3
Sales finance and other 1,033.8 1,032.1 1,069.7 1,152.0 1,232.5
---------- ----------- ----------- ----------- -----------
Consumer finance receivables,
net of unearned finance charges 12,860.5 13,617.5 14,611.8 15,503.3 15,995.4
Accrued interest receivable 99.3 106.5 121.7 133.2 126.5
Allowance for credit losses (388.7) (436.4) (424.1) (407.8) (423.4)
---------- ----------- ----------- ----------- -----------
Consumer finance receivables, net 12,571.1 $ 13,287.6 $ 14,309.4 $ 15,228.7 $ 15,698.5
========== =========== =========== =========== ===========
Number of offices 1,143 1,177 1,173 1,174 1,182
Average yield (3) 14.38% 14.48% 14.58% 14.35% 14.09%
Average net interest margin (3) 8.84% 8.99% 9.01% 8.66% 8.37%
Net credit loss ratio (3) 2.38% 2.14% 2.00% 2.19% 1.92%
Reserves as % of net receivables 3.02% 3.20% 2.90% 2.63% 2.65%
Loans 90+ Days Past Due:
In millions of dollars (3) 183 172 186 203 216
% 1.42% 1.26% 1.27% 1.31% 1.33%
(1) Includes fully secured $.M.A.R.T. receivables,
as follows: $ 2,817.6 $ 3,117.4 $ 3,415.7 $ 3,766.0 $ 4,106.1
(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
(3) Includes loans held for sale
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
2000 (DECREASE) 1999 2000 (DECREASE)
----------- ----------------- ------- ------- ---------------------
<S> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense* $ 474 20% $ 757 $ 936 24%
Adjusted Operating Expenses 187 21% 298 $ 375 26%
Provision for Benefits, Claims, and Credit Losses 102 (13%) 221 $ 199 (10%)
----------- ------- -------
Core Income Before Taxes 185 48% 238 362 52%
Income Taxes 68 45% 89 $ 133 49%
------- -------
===========
Core Income $ 117 50% $ 149 $ 229 54%
=========== ======= =======
Average Assets (in billions of dollars) $ 19 27% $ 15 $ 19 27%
=========== ======= =======
Return on Assets 2.48% 2.00% 2.42%
=========== ======= =======
NET RECEIVABLES:
Real estate-secured loans (1) $ 9,806.0 27%
Personal loans (2) 5,626.6 15%
Sales finance and other 1,264.0 22%
-----------
Consumer finance receivables,
net of unearned finance charges 16,696.6 23%
Accrued interest receivable 134.7 26%
Allowance for credit losses (423.4) (3%)
-----------
Consumer finance receivables, net $ 16,407.9 23%
===========
Number of offices 1,212 3%
Average yield (3) 14.05% 14.43% 14.07%
Average net interest margin (3) 8.16% 8.92% 8.26%
Net credit loss ratio (3) 1.93% 2.26% 1.93%
Reserves as % of net receivables 2.54%
Loans 90+ Days Past Due:
In millions of dollars (3) 229 33%
% 1.32%
(1) Includes fully secured $.M.A.R.T. receivables,
as follows: $ 4,415.7 42%
(2) Includes $.A.F.E. and partially secured $.M.A.R.T.
receivables, as follows: $ 315.7 (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>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
2000 (DECREASE) 1999 2000 (DECREASE)
----------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 983 13% $ 1,638 $ 1,993 22%
CORE INCOME $ 202 17% $ 320 $ 389 22%
PRE-TAX CONTRIBUTION BY SOURCE:
Individual annuities $ 117.9 12% $ 193.9 $ 225.7 16%
Group annuities 114.6 48% 137.2 206.7 51%
Life and long term care insurance 55.9 11% 90.3 115.3 28%
Other (includes run-off and return on excess capital) 13.0 (55%) 61.8 33.3 (46%)
----------- ---------- ----------
Total $ 301.4 15% $ 483.2 $ 581.0 20%
=========== ========== ==========
INDIVIDUAL ANNUITIES:
Net written premiums & deposits:
Fixed $ 302.6 21% $ 443.9 $ 596.1 34%
Variable 1,258.5 20% 2,024.0 2,503.5 24%
Individual Payout 21.7 36% 36.5 42.2 16%
----------- ---------- ----------
Total $ 1,582.8 20% $ 2,504.4 $ 3,141.8 25%
=========== ========== ==========
Policyholder account balances & benefit reserves: (1)
Fixed $ 7,904.0 -
Variable 21,013.2 33%
Individual Payout 626.2 4%
-----------
Total $ 29,543.4 22%
===========
GROUP ANNUITIES:
Net written premiums & deposits (2) $ 1,439.1 (11%) $ 3,468.8 $ 2,896.0 (17%)
Policyholder account balances & benefit reserves: (1)
GICs and other investment contracts $ 11,204.2 2%
Payout group annuities 4,624.0 9%
-----------
Total $ 15,828.2 4%
===========
INDIVIDUAL LIFE INSURANCE:
Net written premiums and deposits:
Direct periodic premiums and deposits $ 113.4 31% $ 171.2 $ 230.1 34%
Single premium deposits 21.0 1% 37.0 39.3 6%
Reinsurance (20.3) 14% (34.6) (39.4) 14%
----------- ---------- ----------
Total $ 114.1 27% $ 173.6 $ 230.0 32%
=========== ========== ==========
Policyholder account balances & benefit reserves $ 2,801.9 12%
Life insurance in force (in billions, face amt.) $ 63.2 10%
Life insurance issued (in billions, face amt.) $ 3.0 25% $ 4.9 $ 5.7 16%
ALL BUSINESSES:
Net investment income (pretax) $ 639.1 10% $ 1,104.2 $ 1,234.0 12%
Interest credited to contractholders $ 248.7 8% $ 456.6 $ 493.4 8%
STATUTORY DATA:
TRAVELERS INSURANCE COMPANY
Statutory capital and surplus $ 4,977.4 -
Surplus to liabilities ratio 20.3%
</TABLE>
(1) Includes general account, separate accounts and managed funds.
(2) Excludes deposits of $24.0 and $41.0 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 2Q
1999 1999 1999 1999 2000 2000
-------- -------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 432 $ 443 $ 444 $ 456 $ 472 $ 479
CORE INCOME
Life insurance $ 86 $ 89 $ 88 $ 84 $ 87 $ 93
Other financial products 24 24 26 31 32 32
-------- -------- -------- -------- ---------- ----------
Total core income $ 110 $ 113 $ 114 $ 115 $ 119 $ 125
======== ======== ======== ======== ========== ==========
LIFE INSURANCE Face value (in billions) of:
Life insurance issued $ 13.6 $ 15.5 $ 12.4 $ 14.7 $ 15.0 $ 18.5
Life insurance in force $ 386.3 $ 391.7 $ 392.8 $ 394.9 $ 397.8 $ 403.6
Annualized issued premiums $ 42.4 $ 48.4 $ 39.3 $ 43.4 $ 44.1 $ 54.1
Direct premiums $ 315.2 $ 321.0 $ 320.5 $ 322.9 $ 324.5 $ 330.9
Earned premiums $ 267.1 $ 268.6 $ 264.8 $ 270.8 $ 270.6 $ 277.4
OTHER PRODUCTS Mutual fund sales at NAV:
Proprietary $ 407.7 $ 453.1 $ 393.7 $ 389.3 $ 465.0 $ 468.7
Other funds 233.5 277.3 257.6 307.6 497.1 552.5
-------- -------- -------- -------- ---------- ----------
Total U.S. mutual fund sales 641.2 730.4 651.3 696.9 962.1 1,021.2
Mutual fund sales - Canada 143.2 76.2 86.1 98.2 228.8 128.0
-------- -------- -------- -------- ---------- ----------
Total mutual fund sales $ 784.4 $ 806.6 $ 737.4 $ 795.1 $ 1,190.9 $ 1,149.2
======== ======== ======== ======== ========== ==========
Cash advanced on $.M.A.R.T. and $.A.F.E. loans (1) $ 419.2 $ 492.7 $ 488.3 $ 519.8 $ 492.0 $ 475.6
Variable annuity net written premiums and deposits $ 223.4 $ 278.6 $ 247.6 $ 240.5 $ 249.9 $ 248.0
AGENTS LICENSED FOR:
Life insurance 79,738 79,251 77,259 79,809 79,818 82,288
Mutual funds 27,129 27,053 26,873 24,566 25,570 25,968
$.M.A.R.T. / $.A.F.E. loans 129,556 118,762 108,377 95,816 93,055 99,481
Variable annuities 13,816 14,497 16,042 16,424 16,453 16,692
Long term care - - 3,419 6,540 8,010 7,785
Home & auto insurance 15,102 14,734 15,425 14,284 13,238 13,038
Financial Needs Analyses submitted 142,451 122,958 111,136 113,748 110,900 109,451
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCCREASE/
(DECREASE) 1999 2000 (DECREASE)
----------------- ---------- ---------- ----------------------
<S> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * 8% $ 875 $ 951 9%
CORE INCOME
Life insurance 4% $ 175 $ 180 3%
Other financial products 33% 48 64 33%
---------- ----------
Total core income 11% $ 223 $ 244 9%
========== ==========
LIFE INSURANCE Face value (in billions) of:
Life insurance issued 19% $ 29.1 $ 33.5 15%
Life insurance in force 3% $ 391.7 $ 403.6 3%
Annualized issued premiums 12% $ 90.8 $ 98.2 8%
Direct premiums 3% $ 636.2 $ 655.4 3%
Earned premiums 3% $ 535.7 $ 548.0 2%
OTHER PRODUCTS Mutual fund sales at NAV:
Proprietary 3% $ 860.8 $ 933.7 8%
Other funds 99% 510.8 1,049.6 105%
---------- ----------
Total U.S. mutual fund sales 40% 1,371.6 1,983.3 45%
Mutual fund sales - Canada 68% 219.4 356.8 63%
---------- ----------
Total mutual fund sales 42% $ 1,591.0 $ 2,340.1 47%
========== ==========
Cash advanced on $.M.A.R.T. and $.A.F.E. loans (1) (3%) $ 911.9 $ 967.6 6%
Variable annuity net written premiums and deposits (11%) $ 502.0 $ 497.9 (1%)
AGENTS LICENSED FOR:
Life insurance 4%
Mutual funds (4%)
$.M.A.R.T. / $.A.F.E. loans (16%)
Variable annuities 15%
Long term care NM
Home & auto insurance (12%)
Financial Needs Analyses submitted (11%) 265,409 220,351 (17%)
</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
NM Not Meaningful
Page 9
<PAGE>
GLOBAL CONSUMER - INSURANCE
TRAVELERS PROPERTY CASUALTY - PERSONAL LINES
(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>
REVENUES, NET OF INTEREST EXPENSE * $ 983 $ 1,005 $ 1,018 $ 1,037 $ 1,027 $ 1,041
CORE INCOME (1) $ 83 $ 79 $ 23 $ 94 $ 75 $ 82
NET WRITTEN PREMIUMS BY PRODUCT LINE: (2)
Auto $ 619.6 $ 597.0 $ 581.1 $ 571.0 $ 583.3 $ 607.7
Homeowners and other 363.8 353.9 370.6 347.8 306.4 375.7
-------- -------- -------- -------- -------- --------
Total net written premiums (a) $ 983.4 $ 950.9 $ 951.7 $ 918.8 $ 889.7 $ 983.4
======== ======== ======== ======== ======== ========
NET WRITTEN PREMIUMS BY DISTRIBUTION CHANNEL: (2)
Independent agents $ 791.6 $ 750.6 $ 743.0 $ 721.2 $ 710.2 $ 790.4
Affinity group marketing 83.0 84.5 92.1 93.7 97.3 101.6
SECURE 57.2 62.6 58.5 46.3 30.8 26.4
Joint marketing arrangements 51.6 53.2 58.1 57.6 51.4 65.0
-------- -------- -------- -------- -------- --------
Total net written premiums (a) $ 983.4 $ 950.9 $ 951.7 $ 918.8 $ 889.7 $ 983.4
======== ======== ======== ======== ======== ========
STATUTORY RATIO DEVELOPMENT:
Earned premiums (b) $ 892.1 $ 905.1 $ 915.5 $ 921.6 $ 910.3 $ 920.0
Losses and loss adjustment expenses (c) 594.3 627.1 702.7 619.8 656.4 668.1
Other underwriting expenses (d) 269.8 242.5 258.7 244.7 239.8 251.2
-------- -------- -------- -------- -------- --------
Total deductions 864.1 869.6 961.4 864.5 896.2 919.3
-------- -------- -------- -------- -------- --------
Statutory underwriting gain/(loss) $ 28.0 $ 35.5 $ (45.9) $ 57.1 $ 14.1 $ 0.7
======== ======== ======== ======== ======== ========
STATUTORY COMBINED RATIO: (2)
Loss and loss adjustment expense ratio (c / b) 66.6% 69.3% 76.8% 67.3% 72.1% 72.6%
Other underwriting expense ratio (d / a) 27.4% 25.5% 27.2% 26.6% 27.0% 25.5%
-------- -------- -------- -------- -------- --------
Combined ratio 94.0% 94.8% 104.0% 93.9% 99.1% 98.1%
======== ======== ======== ======== ======== ========
Net investment income (pre-tax) $ 90.4 $ 98.8 $ 102.0 $ 109.0 $ 112.6 $ 114.6
Effective tax rate on net investment income 27.2% 27.7% 28.4% 28.9% 29.3% 29.5%
Catastrophe losses, net of reinsurance (after-tax) $ 8.1 $ 23.2 $ 48.2 $ - $ 30.4 $ 17.2
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * 4% $ 1,988 $ 2,068 4%
CORE INCOME (1) 4% $ 162 $ 157 (3%)
NET WRITTEN PREMIUMS BY PRODUCT LINE: (2)
Auto 2% $ 1,216.6 $ 1,191.0 (2%)
Homeowners and other 6% 717.7 682.1 (5%)
---------- ----------
Total net written premiums (a) 3% $ 1,934.3 $ 1,873.1 (3%)
========== ==========
NET WRITTEN PREMIUMS BY DISTRIBUTION CHANNEL: (2)
Independent agents 5% $ 1,542.2 $ 1,500.6 (3%)
Affinity group marketing 20% 167.5 198.9 19%
SECURE (58%) 119.8 57.2 (52%)
Joint marketing arrangements 22% 104.8 116.4 11%
---------- ----------
Total net written premiums (a) 3% $ 1,934.3 $ 1,873.1 (3%)
========== ==========
STATUTORY RATIO DEVELOPMENT:
Earned premiums (b) 2% $ 1,797.2 $ 1,830.3 2%
Losses and loss adjustment expenses (c) 7% 1,221.4 1,324.5 8%
Other underwriting expenses (d) 4% 512.3 491.0 (4%)
---------- ----------
Total deductions 6% 1,733.7 1,815.5 5%
---------- ----------
Statutory underwriting gain/(loss) (98%) $ 63.5 $ 14.8 (77%)
========== ==========
STATUTORY COMBINED RATIO: (2)
Loss and loss adjustment expense ratio (c / b) 68.0% 72.4%
Other underwriting expense ratio (d / a) 26.5% 26.2%
---------- ----------
Combined ratio 94.5% 98.6%
========== ==========
Net investment income (pre-tax) 16% $ 189.2 $ 227.2 20%
Effective tax rate on net investment income 27.5% 29.4%
Catastrophe losses, net of reinsurance (after-tax) (26%) $ 31.3 $ 47.6 52%
</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. The 2000 second quarter and six months core
income reflects the elimination of the minority interest and the
additional goodwill as a result of the completed tender offer.
(2) The 1999 first quarter and six 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 six months were 68.0%,
26.1%, and 94.1%, respectively.
* Excludes realized gains on investments
Page 10
<PAGE>
GLOBAL CONSUMER - INTERNATIONAL
EUROPE, MIDDLE EAST AND AFRICA
(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 $ 561 $ 563 $ 607 $ 597 $ 593 $ 576
Adjusted Operating Expenses 373 369 370 388 356 362
Provision for Benefits, Claims, and Credit Losses 80 77 79 76 74 67
--------- ---------- ----------- ----------- ----------- ---------
Core Income Before Taxes 108 117 158 133 163 147
Income Taxes 40 44 60 50 61 55
--------- ---------- ----------- ----------- ----------- ---------
Core Income $ 68 $ 73 $ 98 $ 83 $ 102 $ 92
========= ========== =========== =========== =========== =========
Average Assets (in billions of dollars) $ 22 $ 22 $ 23 $ 22 $ 22 $ 21
========= ========== =========== =========== =========== =========
Return on Assets 1.25% 1.33% 1.69% 1.50% 1.86% 1.76%
========= ========== =========== =========== =========== =========
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Personal $ 10.0 $ 9.8 $ 10.4 $ 10.2 $ 9.8 $ 9.8
Cards 2.1 2.1 2.1 2.2 2.1 2.1
Mortgages 1.9 1.8 1.9 1.8 1.8 1.7
Auto 1.5 1.5 1.6 1.6 1.7 1.7
Other 1.2 1.2 1.3 1.4 1.4 1.2
--------- ---------- ----------- ----------- ----------- ---------
Total $ 16.7 $ 16.4 $ 17.3 $ 17.2 $ 16.8 $ 16.5
========= ========== =========== =========== =========== =========
Average Customer Deposits (in billions of dollars) $ 17.6 $ 17.1 $ 17.0 $ 16.6 $ 16.5 $ 16.1
EOP Accounts (in millions) 10.6 10.7 10.9 11.1 11.4 11.7
EOP Card Accounts (in millions) 3.6 3.5 3.5 3.6 3.6 3.8
Non-Interest Revenue as % of Total Revenues 35.6% 34.8% 36.2% 38.9% 36.7% 35.4%
Net Credit Loss Ratio 1.81% 1.71% 1.60% 1.56% 1.70% 1.57%
Loans 90+ Days Past Due:
In millions of dollars $ 893 $ 899 $ 953 $ 914 $ 875 $ 868
% 5.40% 5.46% 5.45% 5.33% 5.26% 5.09%
Proprietary Mutual Funds / UIT $ 278 $ 771 $ 394 $ 444 $ 427 $ 397
Proprietary Money Market Funds 473 433 253 176 194 109
--------- ---------- ----------- ----------- ----------- ---------
Total Proprietary Funds 751 1,204 647 620 621 506
Third Party Funds 227 133 203 307 509 487
--------- ---------- ----------- ----------- ----------- ---------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $ 978 $ 1,337 $ 850 $ 927 $ 1,130 $ 993
========= ========== =========== =========== =========== =========
Branches 471 466 464 466 470 473
ATM-only locations 74 78 78 76 79 83
Proprietary ATMs 923 927 930 935 950 956
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
------------------- ---------- ------------ -----------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 2% $ 1,124 $ 1,169 4%
Adjusted Operating Expenses (2%) 742 718 (3%)
Provision for Benefits, Claims, and Credit Losses (13%) 157 141 (10%)
---------- ------------
Core Income Before Taxes 26% 225 310 38%
Income Taxes 25% 84 116 38%
---------- ------------
Core Income 26% $ 141 $ 194 38%
========== ============
Average Assets (in billions of dollars) (5%) $ 22 $ 22 -
========== ============
Return on Assets 1.29% 1.77%
========== ============
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Personal - $ 9.9 $ 9.8 (1%)
Cards - 2.1 2.1 -
Mortgages (6%) 1.9 1.8 (5%)
Auto 13% 1.5 1.7 13%
Other - 1.2 1.3 8%
---------- ------------
Total 1% $ 16.6 $ 16.7 1%
========== ============
Average Customer Deposits (in billions of dollars) (6%) $ 17.4 $ 16.3 (6%)
EOP Accounts (in millions) 9%
EOP Card Accounts (in millions) 9%
Non-Interest Revenue as % of Total Revenues 35.2% 36.1%
Net Credit Loss Ratio
Loans 90+ Days Past Due:
In millions of dollars (3%)
%
Proprietary Mutual Funds / UIT (49%) $ 1,049 $ 824 (21%)
Proprietary Money Market Funds (75%) 906 303 (67%)
---------- ------------
Total Proprietary Funds (58%) 1,955 1,127 (42%)
Third Party Funds 266% 360 996 177%
---------- ------------
Mutual Fund / UIT Sales at NAV (in millions of dollars) (26%) $ 2,315 $ 2,123 (8%)
========== ============
Branches 2%
ATM-only locations 6%
Proprietary ATMs 3%
</TABLE>
Page 11
<PAGE>
GLOBAL CONSUMER - INTERNATIONAL
ASIA PACIFIC
(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 $ 517 $ 543 $ 580 $ 606 $ 683 $ 691
Adjusted Operating Expenses 266 281 314 318 334 340
Provision for Benefits, Claims, and Credit Losses 88 89 77 99 79 67
---------- ----------- ---------- ---------- --------- ---------
Core Income Before Taxes 163 173 189 189 270 284
Income Taxes 61 65 71 70 96 101
---------- ----------- ---------- ---------- --------- ---------
Core Income $ 102 $ 108 $ 118 $ 119 $ 174 $ 183
========== =========== ========== ========== ========= =========
Average Assets (in billions of dollars) $ 29 $ 30 $ 31 $ 32 $ 33 $ 33
========== =========== ========== ========== ========= =========
Return on Assets 1.43% 1.44% 1.51% 1.48% 2.12% 2.23%
========== =========== ========== ========== ========= =========
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Mortgages $ 12.5 $ 13.0 $ 13.4 $ 13.9 $ 14.0 $ 14.0
Cards 4.5 4.6 4.8 5.0 5.4 5.7
Auto 2.1 2.2 2.2 2.2 2.3 2.3
Personal 2.1 2.1 2.2 2.3 2.3 2.3
Other 0.9 1.0 1.1 1.1 1.1 1.1
---------- ----------- ---------- ---------- --------- ---------
Total $ 22.1 $ 22.9 $ 23.7 $ 24.5 $ 25.1 $ 25.4
========== =========== ========== ========== ========= =========
Average Customer Deposits (in billions of dollars) $ 39.9 $ 40.6 $ 42.5 $ 45.4 $ 46.4 $ 47.0
EOP Accounts (in millions) 8.1 8.6 9.0 9.2 10.0 10.1
EOP Card Accounts (in millions) 4.3 4.4 4.5 4.7 5.3 5.3
Non-Interest Revenue as % of Total Revenues 29.8% 31.2% 30.7% 29.9% 36.9% 35.8%
Net Credit Loss Ratio 1.43% 1.33% 1.23% 1.15% 1.19% 1.01%
Loans 90+ Days Past Due:
In millions of dollars $ 513 $ 509 $ 450 $ 453 $ 443 $ 405
% 2.31% 2.17% 1.87% 1.80% 1.73% 1.56%
Proprietary Mutual Funds / UIT $ 194 $ 142 $ 189 $ 233 $ 176 $ 207
Proprietary Money Market Funds 253 275 379 360 334 300
---------- ----------- ---------- ---------- --------- ---------
Total Proprietary Funds 447 417 568 593 510 507
Third Party Funds 368 603 695 907 1,740 856
---------- ----------- ---------- ---------- --------- ---------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $ 815 $ 1,020 $ 1,263 $ 1,500 $ 2,250 $ 1,363
========== =========== ========== ========== ========= =========
Branches 84 86 89 92 93 95
ATM-only locations 88 90 91 102 104 101
Proprietary ATMs 332 341 344 353 361 361
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
----------------------- --------- ----------- -------------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 27% $ 1,060 $ 1,374 30%
Adjusted Operating Expenses 21% 547 674 23%
Provision for Benefits, Claims, and Credit Losses (25%) 177 146 (18%)
--------- -----------
Core Income Before Taxes 64% 336 554 65%
Income Taxes 55% 126 197 56%
--------- -----------
Core Income 69% $ 210 $ 357 70%
========= ===========
Average Assets (in billions of dollars) 10% $ 30 $ 33 10%
========= ===========
Return on Assets 1.41% 2.18%
========= ===========
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Mortgages 8% $ 12.7 $ 14.0 10%
Cards 24% 4.6 5.6 22%
Auto 5% 2.2 2.3 5%
Personal 10% 2.1 2.3 10%
Other 10% 0.9 1.1 22%
--------- -----------
Total 11% $ 22.5 $ 25.3 12%
========= ===========
Average Customer Deposits (in billions of dollars) 16% $ 40.3 $ 46.7 16%
EOP Accounts (in millions) 17%
EOP Card Accounts (in millions) 20%
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 46% $ 336 $ 383 14%
Proprietary Money Market Funds 9% 528 634 20%
--------- -----------
Total Proprietary Funds 22% 864 1,017 18%
Third Party Funds 42% 971 2,596 167%
--------- -----------
Mutual Fund / UIT Sales at NAV (in millions of dollars) 34% $ 1,835 $ 3,613 97%
========= ===========
Branches 10%
ATM-only locations 12%
Proprietary ATMs 6%
</TABLE>
Page 12
<PAGE>
GLOBAL CONSUMER - INTERNATIONAL
LATIN 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 $ 464 $ 497 $ 502 $ 512 $ 519 $ 466
Adjusted Operating Expenses 291 299 303 302 324 328
Provision for Loan Losses 101 135 117 94 90 76
---------- ---------- ---------- ----------- ---------- ---------
Core Income Before Taxes 72 63 82 116 105 62
Income Taxes 25 22 29 34 35 21
---------- ---------- ---------- ----------- ---------- ---------
Core Income $ 47 $ 41 $ 53 $ 82 $ 70 $ 41
========== ========== ========== =========== ========== =========
Average Assets (in billions of dollars) $ 14 $ 15 $ 14 $ 14 $ 14 $ 12
========== ========== ========== =========== ========== =========
Return on Assets 1.36% 1.10% 1.50% 2.32% 2.01% 1.37%
========== ========== ========== =========== ========== =========
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Cards $ 2.0 $ 2.0 $ 2.0 $ 2.1 $ 2.1 $ 2.1
Mortgages 2.0 1.9 1.9 1.9 2.0 2.0
Auto 1.9 1.7 1.6 1.6 1.4 1.0
Personal 1.5 1.4 1.3 1.3 1.3 1.3
Other 0.4 1.0 1.1 1.0 0.8 0.8
---------- ---------- ---------- ----------- ---------- ---------
Total $ 7.8 $ 8.0 $ 7.9 $ 7.9 $ 7.6 $ 7.2
========== ========== ========== =========== ========== =========
Average Customer Deposits (in billions of dollars) $ 12.8 $ 13.8 $ 13.6 $ 13.6 $ 13.7 $ 13.7
EOP Accounts (in millions) 8.2 8.0 8.8 8.7 8.5 8.4
EOP Card Accounts (in millions) 2.1 2.1 2.5 2.4 2.4 2.3
Non-Interest Revenue as % of Total Revenues 30.9% 36.3% 33.3% 34.2% 37.8% 37.1%
Net Credit Loss Ratio 4.74% 6.17% 5.55% 4.71% 4.77% 4.25%
Loans 90+ Days Past Due:
In millions of dollars $ 292 $ 346 $ 325 $ 320 $ 333 $ 323
% 3.75% 4.32% 4.10% 4.10% 4.58% 4.52%
Proprietary Funds $ 1,172 $ 1,348 $ 1,610 $ 1,285 $ 1,439 $ 1,697
Third Party Funds 45 50 55 60 66 73
---------- ---------- ---------- ----------- ---------- ---------
Mutual Fund / UIT Sales at NAV (in millions of dollars) $ 1,217 $ 1,398 $ 1,665 $ 1,345 $ 1,505 $ 1,770
========== ========== ========== =========== ========== =========
Branches 466 447 460 459 465 460
Consumer Finance Offices 43 43 94 96 99 99
ATM-only locations 69 73 84 85 84 84
Proprietary ATMs 649 660 745 747 749 753
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
-------------------- ------------ ------------ ----------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense (6%) $ 961 $ 985 2%
Adjusted Operating Expenses 10% 590 652 11%
Provision for Loan Losses (44%) 236 166 (30%)
------------ ------------
Core Income Before Taxes (2%) 135 167 24%
Income Taxes (5%) 47 56 19%
------------ ------------
Core Income - $ 88 $ 111 26%
============ ============
Average Assets (in billions of dollars) (20%) $ 15 $ 13 (13%)
============ ============
Return on Assets 1.18% 1.72%
============ ============
AVERAGE LOANS (IN BILLIONS OF DOLLARS)
Cards 5% $ 2.0 $ 2.1 5%
Mortgages 5% 2.0 2.0 -
Auto (41%) 1.8 1.2 (33%)
Personal (7%) 1.4 1.3 (7%)
Other (20%) 0.7 0.8 14%
------------ ------------
Total (10%) $ 7.9 $ 7.4 (6%)
============ ============
Average Customer Deposits (in billions of dollars) (1%) $ 13.3 $ 13.7 3%
EOP Accounts (in millions) 5%
EOP Card Accounts (in millions) 10%
Non-Interest Revenue as % of Total Revenues 33.7% 37.8%
Net Credit Loss Ratio
Loans 90+ Days Past Due:
In millions of dollars (7%)
%
Proprietary Funds 26% $ 2,520 $ 3,136 24%
Third Party Funds 46% 95 139 46%
------------ ------------
Mutual Fund / UIT Sales at NAV (in millions of dollars) 27% $ 2,615 $ 3,275 25%
============ ============
Branches 3%
Consumer Finance Offices 130%
ATM-only locations 15%
Proprietary ATMs 14%
</TABLE>
Page 13
<PAGE>
GLOBAL CONSUMER
OTHER CONSUMER (1)
(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 $ 49 $ 39 $ 29 $ 9 $ 11 $ (10)
Adjusted Operating Expenses 66 74 42 40 57 36
Provision for Loan Losses 7 7 7 4 - -
------------ ------------ ------------ ------------ ------------ -----------
Loss Before Tax Benefits (24) (42) (20) (35) (46) (46)
Income Tax Benefits (8) (19) (9) (11) (18) (18)
------------ ------------ ------------ ------------ ------------ -----------
Loss $ (16) $ (23) $ (11) $ (24) $ (28) $ (28)
============ ============ ============ ============ ============ ===========
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
------------------------ --------------- -------------- -------------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense (126%) $ 88 $ 1 (99%)
Adjusted Operating Expenses (51%) 140 93 (34%)
Provision for Loan Losses NM 14 - NM
--------------- --------------
Loss Before Tax Benefits (10%) (66) (92) (39%)
Income Tax Benefits 5% (27) (36) (33%)
--------------- --------------
Loss (22%) $ (39) $ (56) (44%)
=============== ==============
</TABLE>
(1) Includes unallocated marketing, staff expenses, and certain treasury
functions.
NM Not meaningful
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 1Q 2Q
1999 1999 1999 1999 2000 2000
--------- ---------- ---------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Commissions $ 900 $ 903 $ 812 $ 1,015 $ 1,309 $ 1,017
Asset management and administration fees 377 400 431 430 499 545
Investment banking 655 762 760 793 905 826
Principal transactions 974 698 328 544 860 636
Other income 65 49 65 105 240 220
--------- ---------- ---------- ---------- --------- ----------
Total non-interest revenues 2,971 2,812 2,396 2,887 3,813 3,244
--------- ---------- ---------- ---------- --------- ----------
Interest and dividends 2,611 2,864 2,809 2,982 3,326 3,928
Interest expense 2,241 2,407 2,414 2,590 2,953 3,479
--------- ---------- ---------- ---------- --------- ----------
Net interest and dividends 370 457 395 392 373 449
--------- ---------- ---------- ---------- --------- ----------
Total revenues, net of interest expense 3,341 3,269 2,791 3,279 4,186 3,693
--------- ---------- ---------- ---------- --------- ----------
Non-interest expenses:
Compensation and benefits 1,794 1,707 1,556 1,587 2,005 2,013
Communications 117 111 123 138 132 153
Occupancy and equipment 106 104 109 109 118 131
Floor brokerage and other production 101 125 113 128 149 154
Other operating and administrative expenses 220 261 206 258 260 301
--------- ---------- ---------- ---------- --------- ----------
Total non-interest expenses 2,338 2,308 2,107 2,220 2,664 2,752
--------- ---------- ---------- ---------- --------- ----------
Core income before income taxes 1,003 961 684 1,059 1,522 941
Provision for income taxes 355 351 252 395 565 300
--------- ---------- ---------- ---------- --------- ----------
Core Income $ 648 $ 610 $ 432 $ 664 $ 957 $ 641
========= ========== ========== ========== ========= ==========
Total equity (in billions of dollars) (1) $ 9.6 $ 9.6 $ 9.9 $ 9.3 $ 9.9 $ 10.3*
Return on equity (1) 31.4% 29.1% 21.4% 31.2% 41.1% 26.2%
Pre-tax profit margin 30.0% 29.4% 24.5% 32.3% 36.4% 25.5%
Non-compensation expenses as a percent of
net revenues 16.3% 18.4% 19.7% 19.3% 15.7% 20.0%
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
-------------------- -------------- -------------- -----------------------
<S> <C> <C> <C> <C>
Revenues:
Commissions 13% $ 1,803 $ 2,326 29%
Asset management and administration fees 36% 777 1,044 34%
Investment banking 8% 1,417 1,731 22%
Principal transactions (9%) 1,672 1,496 (11%)
Other income 349% 114 460 304%
-------------- --------------
Total non-interest revenues 15% 5,783 7,057 22%
-------------- --------------
Interest and dividends 37% 5,475 7,254 32%
Interest expense 45% 4,648 6,432 38%
-------------- --------------
Net interest and dividends (2%) 827 822 (1%)
-------------- --------------
Total revenues, net of interest expense 13% 6,610 7,879 19%
-------------- --------------
Non-interest expenses:
Compensation and benefits 18% 3,501 4,018 15%
Communications 38% 228 285 25%
Occupancy and equipment 26% 210 249 19%
Floor brokerage and other production 23% 226 303 34%
Other operating and administrative expenses 15% 481 561 17%
-------------- --------------
Total non-interest expenses 19% 4,646 5,416 17%
-------------- --------------
Core income before income taxes (2%) 1,964 2,463 25%
Provision for income taxes (15%) 706 865 23%
-------------- --------------
Core Income 5% $ 1,258 $ 1,598 27%
============== ==============
Total equity (in billions of dollars) (1) 7%
Return on equity (1) 30.2% 33.5%
Pre-tax profit margin 29.7% 31.3%
Non-compensation expenses as a percent of
net revenues 17.3% 17.7%
</TABLE>
(1) Total equity and return on equity (core income) for Salomon Smith Barney are
calculated on a legal entity basis.
* Preliminary.
Page 15
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
SALOMON SMITH BARNEY - PAGE 2
(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>
CLIENT ASSETS (IN BILLIONS OF DOLLARS)
ASSETS UNDER FEE-BASED MANAGEMENT:
Consulting Group and Internally Managed $ 107.4 $ 113.6 $ 113.0 $ 126.2 $ 133.1 $ 135.8
Financial Consultant (FC) Managed 26.8 29.5 31.6 43.6 55.4 58.2
------------- ----------- ----------- ----------- ----------- -----------
Total assets under fee-based management (1) $ 134.2 $ 143.1 $ 144.6 $ 169.8 $ 188.5 $ 194.0
============= =========== =========== =========== =========== ===========
Total client assets $ 816.0 $ 852.1 $ 844.6 $ 965.0 $ 1,032.2 $ 1,031.5
PRIVATE CLIENT
Registered FC's 10,918 11,032 11,086 11,333 11,414 11,686
Annualized retail gross production per FC (000) $ 481 $ 477 $ 465 $ 498 $ 598 $ 498
Domestic retail offices 457 467 472 476 482 492
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 $ 56,513.7 $ 95,947.2 $ 100,063.1
Global market share 9.0% 8.9% 9.6% 7.4% 9.4% 11.5%
Rank 2 2 2 4 2 1
U.S. volume (3) $ 81,926.0 $ 74,492.7 $ 61,982.4 $ 36,427.6 $ 70,201.2 $ 60,724.1
U.S. market share 13.5% 12.9% 12.3% 9.4% 12.5% 13.3%
Rank 2 2 2 4 2 2
MUNICIPALS
Volume (4) $ 7,146.4 $ 5,399.7 $ 8,612.4 $ 9,656.6 $ 5,191.7 $ 6,508.6
Market share 12.3% 9.6% 15.9% 18.8% 13.2% 13.0%
Rank 2 2 1 1 1 1
CAPITAL MARKETS/RESEARCH
Number of stocks in which markets are made 1,305 1,296 1,305 1,335 1,416 1,391
% of S&P sectors covered by research 98% 98% 98% 98% 99% 100%
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 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 20% $ 113.6 $ 135.8 20%
Financial Consultant (FC) Managed 97% 29.5 58.2 97%
---------------------------------
Total assets under fee-based management (1) 36% $ 143.1 $ 194.0 36%
=================================
Total client assets 21% $ 852.1 $ 1,031.5 21%
PRIVATE CLIENT
Registered FC's 6% 11,032 11,686 6%
Annualized retail gross production per FC (000) 4% $ 478 $ 548 15%
Domestic retail offices 5% 467 492 5%
INVESTMENT BANKING AND PUBLIC FINANCE
UNDERWRITING (FULL CREDIT TO BOOK MGR.):
DEBT AND EQUITY
Global volume (2) 5% $ 198,684.1 $ 196,010.4 (1%)
Global market share 8.9% 10.4%
Rank 2 2
U.S. volume (3) (18%) $ 156,418.5 $ 130,925.3 (16%)
U.S. market share 13.2% 12.9%
Rank 2 2
MUNICIPALS
Volume (4) 21% $ 12,546.1 $ 11,700.4 (7%)
Market share 11.0% 13.1%
Rank 2 1
CAPITAL MARKETS/RESEARCH
Number of stocks in which markets are made 7% 1,296 1,391 7%
% of S&P sectors covered by research 98% 100%
</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.
Page 16
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
TOTAL GLOBAL CORPORATE BANK
(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 $ 2,261 $ 2,135 $ 2,076 $ 2,084 $ 2,446 $ 2,536
Adjusted Operating Expenses 1,349 1,328 1,323 1,321 1,328 1,407
Provision for Loan Losses 112 111 38 92 124 131
------------ ----------- ------------ ----------- ----------- -----------
Core Income Before Taxes and Minority Interest 800 696 715 671 994 998
Income Taxes 297 261 270 249 360 362
Minority Interest, Net of Tax 1 2 1 2 2 7
------------ ----------- ------------ ----------- ----------- -----------
Core Income $ 502 $ 433 $ 444 $ 420 $ 632 $ 629
============ =========== ============ =========== =========== ===========
Average Assets (in billions of dollars) $ 168 $ 164 $ 158 $ 162 $ 168 $ 182
============ =========== ============ =========== =========== ===========
Return on Assets 1.21% 1.06% 1.11% 1.03% 1.51% 1.39%
============ =========== ============ =========== =========== ===========
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
-------------------- --------------- -------------- -----------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 19% $ 4,396 $ 4,982 13%
Adjusted Operating Expenses 6% 2,677 2,735 2%
Provision for Loan Losses 18% 223 255 14%
--------------- --------------
Core Income Before Taxes and Minority Interest 43% 1,496 1,992 33%
Income Taxes 39% 558 722 29%
Minority Interest, Net of Tax 250% 3 9 200%
--------------- --------------
Core Income 45% $ 935 $ 1,261 35%
=============== ==============
Average Assets (in billions of dollars) 11% $ 166 $ 175 5%
=============== ==============
Return on Assets 1.14% 1.45%
=============== ==============
</TABLE>
GLOBAL CORPORATE BANK
EMERGING MARKETS
(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 $ 1,143 $ 1,096 $ 1,055 $ 1,050 $ 1,238 $ 1,270
Adjusted Operating Expenses 521 523 534 546 534 602
Provision for Loan Losses 115 110 32 90 84 79
------------ ----------- ------------ ----------- ----------- -----------
Core Income Before Taxes and Minority Interest 507 463 489 414 620 589
Income Taxes 191 175 187 156 226 215
Minority Interest, Net of Tax 1 2 1 2 2 4
------------ ----------- ------------ ----------- ----------- -----------
Core Income $ 315 $ 286 $ 301 $ 256 $ 392 $ 370
============ =========== ============ =========== =========== ===========
Average Assets (in billions of dollars) $ 80 $ 83 $ 82 $ 81 $ 83 $ 87
============ =========== ============ =========== =========== ===========
Return on Assets 1.60% 1.38% 1.46% 1.25% 1.90% 1.71%
============ =========== ============ =========== =========== ===========
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
-------------------- --------------- -------------- ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 16% $ 2,239 $ 2,508 12%
Adjusted Operating Expenses 15% 1,044 1,136 9%
Provision for Loan Losses (28%) 225 163 (28%)
--------------- --------------
Core Income Before Taxes and Minority Interest 27% 970 1,209 25%
Income Taxes 23% 366 441 20%
Minority Interest, Net of Tax 100% 3 6 100%
--------------- --------------
Core Income 29% $ 601 $ 762 27%
=============== ==============
Average Assets (in billions of dollars) 5% $ 82 $ 85 4%
=============== ==============
Return on Assets 1.48% 1.80%
=============== ==============
</TABLE>
GLOBAL CORPORATE BANK
GLOBAL RELATIONSHIP BANKING
(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 $ 1,118 $ 1,039 $ 1,021 $ 1,034 $ 1,208 $ 1,266
Adjusted Operating Expenses 828 805 789 775 794 805
Provision for Loan Losses (3) 1 6 2 40 52
------------ ----------- ------------ ----------- ----------- -----------
Core Income Before Taxes and Minority Interest 293 233 226 257 374 409
Income Taxes 106 86 83 93 134 147
Minority Interest, Net of Tax - - - - - 3
------------ ----------- ------------ ----------- ----------- -----------
Core Income $ 187 $ 147 $ 143 $ 164 $ 240 $ 259
============ =========== ============ =========== =========== ===========
Average Assets (in billions of dollars) $ 88 $ 81 $ 76 $ 81 $ 85 $ 95
============ =========== ============ =========== =========== ===========
Return on Assets 0.86% 0.73% 0.75% 0.80% 1.14% 1.10%
============ =========== ============ =========== =========== ===========
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
-------------------- --------------- -------------- ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 22% $ 2,157 $ 2,474 15%
Adjusted Operating Expenses - 1,633 1,599 (2%)
Provision for Loan Losses NM (2) 92 NM
--------------- --------------
Core Income Before Taxes and Minority Interest 76% 526 783 49%
Income Taxes 71% 192 281 46%
Minority Interest, Net of Tax NM - 3 NM
--------------- --------------
Core Income 76% $ 334 $ 499 49%
=============== ==============
Average Assets (in billions of dollars) 17% $ 85 $ 90 6%
=============== ==============
Return on Assets 0.79% 1.11%
=============== ==============
</TABLE>
NM Not meaningful
Page 17
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
TRAVELERS PROPERTY CASUALTY - COMMERCIAL LINES
(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>
REVENUES, NET OF INTEREST EXPENSE * $ 1,534 $ 1,558 $ 1,578 $ 1,595 $ 1,568 $ 1,626
CORE INCOME (1) $ 189 $ 201 $ 255 $ 200 $ 240 $ 267
NET WRITTEN PREMIUMS BY MARKET (2):
Commercial accounts $ 443.6 $ 440.1 $ 469.9 $ 462.7 $ 487.4 $ 457.4
Select accounts 372.3 393.4 355.4 373.0 387.3 406.8
Specialty accounts 148.2 159.8 158.4 143.1 180.5 310.0
National accounts 149.9 101.4 148.8 88.3 92.0 58.5
------------ ------------ ------------ ----------- ----------- -----------
Total net written premiums (a) $ 1,114.0 $ 1,094.7 $ 1,132.5 $ 1,067.1 $ 1,147.2 $ 1,232.7
============ ============ ============ =========== =========== ===========
STATUTORY RATIO DEVELOPMENT:
Earned premiums (b) $ 1,072.7 $ 1,100.8 $ 1,110.3 $ 1,090.7 $ 1,079.0 $ 1,120.5
Losses and loss adjustment expenses (3) (c) 817.5 827.2 928.8 832.2 792.7 854.7
Other underwriting expenses (d) 317.9 333.8 349.8 350.6 320.4 373.3
------------ ------------ ------------ ----------- ----------- -----------
Total deductions 1,135.4 1,161.0 1,278.6 1,182.8 1,113.1 1,228.0
------------ ------------ ------------ ----------- ----------- -----------
Statutory underwriting loss $ (62.7) $ (60.2) $ (168.3) $ (92.1) $ (34.1) $ (107.5)
============ ============ ============ =========== =========== ===========
STATUTORY COMBINED RATIO: (2), (3), (4)
Loss and loss adjustment expense ratio (c / b) 76.2% 75.1% 83.7% 76.3% 73.5% 76.3%
Other underwriting expense ratio (d / a) 28.5% 30.5% 30.9% 32.9% 27.9% 30.3%
------------ ------------ ------------ ----------- ----------- -----------
Combined ratio 104.7% 105.6% 114.6% 109.2% 101.4% 106.6%
============ ============ ============ =========== =========== ===========
Net investment income (pre-tax) $ 412.6 $ 410.5 $ 420.2 $ 445.4 $ 435.9 $ 439.1
Effective tax rate on net investment income 26.6% 26.5% 26.7% 27.1% 26.9% 26.9%
Catastrophe losses, net of reinsurance (after-tax) $ - $ 9.9 $ 17.4 $ - $ - $ -
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
------------------ --------------- --------------- ---------------------
<S> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * 4% $ 3,092 $ 3,194 3%
CORE INCOME (1) 33% $ 390 $ 507 30%
NET WRITTEN PREMIUMS BY MARKET (2):
Commercial accounts 4% $ 883.7 $ 944.8 7%
Select accounts 3% 765.7 794.1 4%
Specialty accounts 94% 308.0 490.5 59%
National accounts (42%) 251.3 150.5 (40%)
--------------- ---------------
Total net written premiums (a) 13% $ 2,208.7 $ 2,379.9 8%
=============== ===============
STATUTORY RATIO DEVELOPMENT:
Earned premiums (b) 2% 2,173.5 $ 2,199.5 1%
Losses and loss adjustment expenses (3) (c) 3% 1,644.7 1,647.4 -
Other underwriting expenses (d) 12% 651.7 693.7 6%
--------------- ---------------
Total deductions 6% 2,296.4 2,341.1 2%
--------------- ---------------
Statutory underwriting loss 79% $ (122.9) $ (141.6) 15%
=============== ===============
STATUTORY COMBINED RATIO: (2), (3), (4)
Loss and loss adjustment expense ratio (c / b) 75.7% 74.9%
Other underwriting expense ratio (d / a) 29.5% 29.1%
--------------- ---------------
Combined ratio 105.2% 104.0%
=============== ===============
Net investment income (pre-tax) 7% $ 823.1 $ 875.0 6%
Effective tax rate on net investment income 26.5% 26.9%
Catastrophe losses, net of reinsurance (after-tax) NM $ 9.9 $ - 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. The 2000
second quarter and six months core income reflects the elimination of the
minority interest and the additional goodwill as a result of the completed
tender offer.
(2) The 2000 second quarter and six 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 six months were 74.9%, 28.5% and 103.4%, respectively.
(3) The 1999 third quarter includes the effect of a settlement of an asbestos
liability, which increased losses and loss adjustment expenses, for
statutory purposes only, by $105.2 million. Excluding this transaction, the
statutory loss and loss adjustment expense ratio, other underwriting
expense ratio, and combined ratio for the 1999 third quarter were 74.2%,
30.9% and 105.1%, respectively.
(4) Before policyholder dividends.
* Excludes realized gains on investments
NM - Not meaningful
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 1Q 2Q
1999 1999 1999 1999 2000 2000
---------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Revenues:
Investment advisory, admin. & distribution fees $ 341 $ 339 $ 345 $ 388 $ 413 $ 469
Unit Investment Trust revenues - net 9 10 21 8 12 7
Other revenues, net interest expense 6 9 3 12 5 4
---------- --------- --------- --------- --------- ---------
Total revenues 356 358 369 408 430 480
---------- --------- --------- --------- --------- ---------
Expenses:
Employee compensation and benefits 107 100 111 124 135 144
Mutual fund commission expense 30 28 34 28 29 34
Other expenses 85 90 86 126 113 148
---------- --------- --------- --------- --------- ---------
Total expenses 222 218 231 278 277 326
---------- --------- --------- --------- --------- ---------
Core income before income taxes 134 140 138 130 153 154
Provision for income taxes 53 56 55 52 61 61
---------- --------- --------- --------- --------- ---------
Core income $ 81 $ 84 $ 83 $ 78 $ 92 $ 93
========== ========= ========= ========= ========= =========
Pre-tax profit margin 37.4% 38.8% 37.1% 31.9% 35.3% 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 $ 83.2 $ 79.3
Institutional 16.9 15.2 16.6 18.9 17.0 18.2
---------- --------- --------- --------- --------- ---------
Total money market and institutional liquidity funds 87.6 85.0 87.7 93.5 100.2 97.5
---------- --------- --------- --------- --------- ---------
Long-term mutual funds:
Equity / Balanced 43.8 45.7 44.7 50.4 53.4 53.2
Taxable Fixed Income 29.1 30.1 28.4 22.5 21.4 21.6
Tax Exempt Fixed Income 10.9 10.2 9.7 8.8 8.5 8.3
Annuities 4.1 4.5 4.6 5.4 5.8 5.8
---------- --------- --------- --------- --------- ---------
Total long-term mutual funds 87.9 90.5 87.4 87.1 89.1 88.9
---------- --------- --------- --------- --------- ---------
Managed accounts:
Private client 43.2 46.3 47.5 51.1 54.4 55.5
Institutional 91.4 95.6 96.2 100.0 97.8 96.7
Emerging Markets Pension Administration - - - - 1.1 4.5
---------- --------- --------- --------- --------- ---------
Total managed accounts 134.6 141.9 143.7 151.1 153.3 156.7
---------- --------- --------- --------- --------- ---------
Unit Investment Trusts held in client accounts 12.8 12.9 12.3 12.9 12.3 11.2
---------- --------- --------- --------- --------- ---------
Alternative Investment Strategies 28.1 30.0 32.6 32.7 33.0 34.3
---------- --------- --------- --------- --------- ---------
Total assets under management (1) $ 351.0 $ 360.3 $ 363.7 $ 377.3 $ 387.9 $ 388.6
========== ========= ========= ========= ========= =========
ASSETS UNDER MANAGEMENT BY CLIENT TYPE (IN BILLIONS OF DOLLARS):
Retail $ 210.9 $ 215.4 $ 214.8 $ 222.6 $ 236.2 $ 231.2
Emerging Markets Pension Administration - - - - 1.1 4.5
Institutional (including Alternate Investment Strategies) 140.1 144.9 148.9 154.7 150.6 152.9
---------- --------- --------- --------- --------- ---------
Total assets under management $ 351.0 $ 360.3 $ 363.7 $ 377.3 $ 387.9 $ 388.6
========== ========= ========= ========= ========= =========
Number of Morningstar 4- and 5-star funds 22 17 20 20 20 19
GLOBAL RETIREMENT SERVICES (IN BILLIONS OF DOLLARS):
Emerging Markets Pension Administration -
Assets Under Management (2) $ 10.6 $ 11.5 $ 11.8 $ 12.3 $ 13.9 $ 13.7
Number of Participants / Affiliates (in millions) 5.2 5.3 5.5 5.7 5.9 6.1
CitiStreet Joint Venture - Assets Under Administration - - - - - 189.2
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
------------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C>
Revenues:
Investment advisory, admin. & distribution fees 38% $ 680 $ 882 30%
Unit Investment Trust revenues - net (30%) 19 19 -
Other revenues, net interest expense (56%) 15 9 (40%)
---------- ----------
Total revenues 34% 714 910 27%
---------- ----------
Expenses:
Employee compensation and benefits 44% 207 279 35%
Mutual fund commission expense 21% 58 63 9%
Other expenses 64% 175 261 49%
---------- ----------
Total expenses 50% 440 603 37%
---------- ----------
Core income before income taxes 10% 274 307 12%
Provision for income taxes 9% 109 122 12%
---------- ----------
Core income 11% $ 165 $ 185 12%
========== ==========
Pre-tax profit margin 38.1% 33.8%
ASSETS UNDER MANAGEMENT BY PRODUCT TYPE (IN BILLIONS OF DOLLARS):
Money market and institutional liquidity funds:
Retail 14%
Institutional 20%
Total money market and institutional liquidity funds 15%
Long-term mutual funds:
Equity / Balanced 16%
Taxable Fixed Income (28%)
Tax Exempt Fixed Income (19%)
Annuities 29%
Total long-term mutual funds (2%)
Managed accounts:
Private client 20%
Institutional 1%
Emerging Markets Pension Administration NM
Total managed accounts 10%
Unit Investment Trusts held in client accounts (13%)
Alternative Investment Strategies 14%
Total assets under management (1) 8%
ASSETS UNDER MANAGEMENT BY CLIENT TYPE (IN BILLIONS OF DOLLARS):
Retail 7%
Emerging Markets Pension Administration NM
Institutional (including Alternate Investment Strategies) 6%
Total assets under management 8%
Number of Morningstar 4- and 5-star funds 12%
GLOBAL RETIREMENT SERVICES (IN BILLIONS OF DOLLARS):
Emerging Markets Pension Administration -
Assets Under Management (2) 19%
Number of Participants / Affiliates (in millions) 15%
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 and $31 billion, respectively, for
the 2000 first and second quarters 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
Page 19
<PAGE>
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING
GLOBAL PRIVATE BANK
(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 $ 275 $ 301 $ 305 $ 332 $ 363 $ 338
Adjusted Operating Expenses 179 186 191 216 213 210
Provision for Loan Losses 8 2 2 - 22 3
---------- ----------- ------------ ------------ ----------- -----------
Core Income Before Taxes 88 113 112 116 128 125
Income Taxes 33 42 42 44 47 46
---------- ----------- ------------ ------------ ----------- -----------
Core Income $ 55 $ 71 $ 70 $ 72 $ 81 $ 79
========== =========== ============ ============ =========== ===========
Average Assets (in billions of dollars) $ 18 $ 19 $ 21 $ 23 $ 23 $ 24
========== =========== ============ ============ =========== ===========
Return on Assets 1.24% 1.50% 1.32% 1.24% 1.42% 1.32%
========== =========== ============ ============ =========== ===========
Client Business Volumes (in billions of dollars) $ 119 $ 125 $ 128 $ 140 $ 144 $ 149
========== =========== ============ ============ =========== ===========
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS):
Proprietary Managed Assets $ 27 $ 27 $ 27 $ 29 $ 29 $ 30
Other Assets under Fee based Management 3 3 3 4 5 5
Banking and Fiduciary Deposits 27 27 27 27 28 28
Loans 17 20 23 24 25 27
Other, Principally Custody Accounts 45 48 48 56 57 59
---------- ----------- ------------ ------------ ----------- -----------
Total Client Business Volumes $ 119 $ 125 $ 128 $ 140 $ 144 $ 149
========== =========== ============ ============ =========== ===========
REVENUES:
Customer Revenues
Net Interest Spread and Recurring
Fee Based Revenues $ 199 $ 201 $ 206 $ 225 $ 234 $ 239
Transaction Revenues 38 56 62 68 80 63
---------- ----------- ------------ ------------ ----------- -----------
Total Customer Revenues 237 257 268 293 314 302
Other Revenues (Principally Allocated Equity
and Treasury Revenues) 38 44 37 39 49 36
---------- ----------- ------------ ------------ ----------- -----------
Total Revenues $ 275 $ 301 $ 305 $ 332 $ 363 $ 338
========== =========== ============ ============ =========== ===========
United States $ 102 $ 108 $ 108 $ 113 $ 120 $ 120
International 173 193 197 219 243 218
---------- ----------- ------------ ------------ ----------- -----------
$ 275 $ 301 $ 305 $ 332 $ 363 $ 338
========== =========== ============ ============ =========== ===========
Net Credit Loss Ratio 0.18% 0.05% 0.05% 0.13% 0.18% 0.05%
Loans 90+ Days Past Due:
In Millions of Dollars $ 191 $ 162 $ 145 $ 120 $ 87 $ 78
Delinquency Ratio (% of Avg Loans) 1.10% 0.88% 0.69% 0.54% 0.37% 0.32%
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
------------------- ------------ ------------ ------------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 12% $ 576 $ 701 22%
Adjusted Operating Expenses 13% 365 423 16%
Provision for Loan Losses 50% 10 25 150%
------------ ------------
Core Income Before Taxes 11% 201 253 26%
Income Taxes 10% 75 93 24%
------------ ------------
Core Income 11% $ 126 $ 160 27%
============ ============
Average Assets (in billions of dollars) 26% $ 19 $ 24 26%
============ ============
Return on Assets 1.34% 1.34%
============ ============
Client Business Volumes (in billions of dollars) 19%
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS):
Proprietary Managed Assets 11%
Other Assets under Fee based Management 67%
Banking and Fiduciary Deposits 4%
Loans 35%
Other, Principally Custody Accounts 23%
Total Client Business Volumes 19%
REVENUES:
Customer Revenues
Net Interest Spread and Recurring
Fee Based Revenues 19% $ 400 $ 473 18%
Transaction Revenues 13% 94 143 52%
------------ ------------
Total Customer Revenues 18% 494 616 25%
Other Revenues (Principally Allocated Equity
and Treasury Revenues) (18%) 82 85 4%
------------ ------------
Total Revenues 12% $ 576 $ 701 22%
============ ============
United States 11% $ 210 $ 240 14%
International 13% 366 461 26%
------------ ------------
12% $ 576 $ 701 22%
============ ============
Net Credit Loss Ratio
Loans 90+ Days Past Due:
In Millions of Dollars (52%)
Delinquency Ratio (% of Avg Loans)
</TABLE>
Page 20
<PAGE>
INVESTMENT ACTIVITIES
(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>
REVENUES:
Proprietary Investments (1) $ 103 $ 219 $ 289 $ 191 $ 1,363 $ 294
LDC Debt Sales/Refinancing 20 18 19 21 (112) 69
Insurance Portfolio Gains (Losses) (2) 30 33 3 144 (235) 24
------------ ------------- ------------- ------------ ----------- ----------
Total Revenues $ 153 $ 270 $ 311 $ 356 $ 1,016 $ 387
============ ============= ============= ============ =========== ==========
CORE INCOME:
Proprietary Investments (1) $ 59 $ 133 $ 179 $ 115 $ 850 $ 175
LDC Debt Sales/Refinancing 13 11 11 12 (69) 42
Insurance Portfolio Gains (Losses) (2) 17 18 4 86 (147) 17
------------ ------------- ------------- ------------ ----------- ----------
Total Core Income $ 89 $ 162 $ 194 $ 213 $ 634 $ 234
============ ============= ============= ============ =========== ==========
PERIOD END ASSETS:
Proprietary Investments $ 5,200 $ 5,429 $ 6,194 $ 7,081 $ 7,804 $ 7,954
LDC Debt Sales/Refinancing 3,377 3,358 3,304 3,371 3,285 3,002
------------ ------------- ------------- ------------ ----------- ----------
Total Period End Assets $ 8,577 $ 8,787 $ 9,498 $ 10,452 $ 11,089 $ 10,956
============ ============= ============= ============ =========== ==========
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
------------------- ---------- ------------ -------------------------
<S> <C> <C> <C> <C>
REVENUES:
Proprietary Investments (1) 34% $ 322 $ 1,657 415%
LDC Debt Sales/Refinancing 283% 38 (43) NM
Insurance Portfolio Gains (Losses) (2) (27%) 63 (211) NM
---------- ------------
Total Revenues 43% $ 423 $ 1,403 232%
========== ============
CORE INCOME:
Proprietary Investments (1) 32% $ 192 $ 1,025 434%
LDC Debt Sales/Refinancing 282% 24 (27) NM
Insurance Portfolio Gains (Losses) (2) (6%) 35 (130) NM
---------- ------------
Total Core Income 44% $ 251 $ 868 246%
========== ============
PERIOD END ASSETS:
Proprietary Investments 47%
LDC Debt Sales/Refinancing (11%)
Total Period End Assets 25%
</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
Page 21
<PAGE>
CITIGROUP CONSOLIDATED STATEMENT OF INCOME
(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>
Revenues
Loan interest, including fees $ 5,888 $ 5,614 $ 5,784 $ 5,886 $ 6,024 $ 6,563
Other interest and dividends 5,414 5,449 5,417 5,448 5,878 6,581
Insurance premiums 2,526 2,616 2,636 2,663 2,717 2,733
Commissions and fees 2,872 3,153 3,149 3,549 3,998 3,829
Principal transactions 1,770 1,272 954 1,164 1,723 1,435
Asset management and administration fees 955 1,003 1,056 1,150 1,284 1,332
Realized gains (losses) from sales of investments 53 188 35 281 (169) 280
Other income 1,043 1,141 1,066 810 2,253 942
------------ ----------- ---------- ------------ ----------- ---------
Total revenues 20,521 20,436 20,097 20,951 23,708 23,695
Interest expense 6,451 6,056 6,076 6,185 6,724 7,791
------------ ----------- ---------- ------------ ----------- ---------
Total revenues, net of interest expense 14,070 14,380 14,021 14,766 16,984 15,904
------------ ----------- ---------- ------------ ----------- ---------
PROVISIONS FOR BENEFITS, CLAIMS, AND CREDIT LOSSES
Policyholder benefits and claims 2,048 2,151 2,258 2,214 2,251 2,307
Provision for credit losses 729 790 632 686 751 711
------------ ----------- ---------- ------------ ----------- ---------
Total provisions for benefits, claims,
and credit losses 2,777 2,941 2,890 2,900 3,002 3,018
------------ ----------- ---------- ------------ ----------- ---------
OPERATING EXPENSES
Non-insurance compensation and benefits 3,755 3,615 3,531 3,635 4,125 4,188
Insurance underwriting, acquisition and operating 841 817 786 909 848 800
Restructuring-related items (130) 47 22 (27) 20 3
Other operating 2,855 3,045 2,922 3,158 3,333 3,251
------------ ----------- ---------- ------------ ----------- ---------
Total operating expenses 7,321 7,524 7,261 7,675 8,326 8,242
------------ ----------- ---------- ------------ ----------- ---------
INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGES 3,972 3,915 3,870 4,191 5,656 4,644
Provision for income taxes 1,423 1,402 1,379 1,499 2,011 1,616
Minority interest, net of income taxes 60 65 56 70 55 23
------------ ----------- ---------- ------------ ----------- ---------
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING
CHANGES 2,489 2,448 2,435 2,622 3,590 3,005
Cumulative effect of accounting changes (127) - - - - -
------------ ----------- ---------- ------------ ----------- ---------
NET INCOME $ 2,362 $ 2,448 $ 2,435 $ 2,622 $ 3,590 $ 3,005
============ =========== ========== ============ =========== =========
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
------------------- ----------- ---------- ------------------------
<S> <C> <C> <C> <C>
Revenues
Loan interest, including fees 17% $ 11,502 $ 12,587 9%
Other interest and dividends 21% 10,863 12,459 15%
Insurance premiums 4% 5,142 5,450 6%
Commissions and fees 21% 6,025 7,827 30%
Principal transactions 13% 3,042 3,158 4%
Asset management and administration fees 33% 1,958 2,616 34%
Realized gains (losses) from sales of investments 49% 241 111 (54%)
Other income (17%) 2,184 3,195 46%
----------- ----------
Total revenues 16% 40,957 47,403 16%
Interest expense 29% 12,507 14,515 16%
----------- ----------
Total revenues, net of interest expense 11% 28,450 32,888 16%
----------- ----------
PROVISIONS FOR BENEFITS, CLAIMS, AND CREDIT LOSSES
Policyholder benefits and claims 7% 4,199 4,558 9%
Provision for credit losses (10%) 1,519 1,462 (4%)
----------- ----------
Total provisions for benefits, claims,
and credit losses 3% 5,718 6,020 5%
----------- ----------
OPERATING EXPENSES
Non-insurance compensation and benefits 16% 7,370 8,313 13%
Insurance underwriting, acquisition and operating (2%) 1,658 1,648 (1%)
Restructuring-related items (94%) (83) 23 NM
Other operating 7% 5,900 6,584 12%
----------- ----------
Total operating expenses 10% 14,845 16,568 12%
----------- ----------
INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGES 19% 7,887 10,300 31%
Provision for income taxes 15% 2,825 3,627 28%
Minority interest, net of income taxes (65%) 125 78 (38%)
----------- ----------
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING
CHANGES 23% 4,937 6,595 34%
Cumulative effect of accounting changes - (127) - NM
----------- ----------
NET INCOME 23% $ 4,810 $ 6,595 37%
=========== ==========
</TABLE>
NM - Not meaningful
Page 22
<PAGE>
CITIGROUP EARNINGS ANALYSIS - MANAGED BASIS
(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 $ 14,070 $ 14,380 $ 14,021 $ 14,766 $ 16,984 $ 15,904
Effect of Credit Card Securitization Activity 588 570 552 559 519 469
------------- ---------- ---------- ---------- --------- ----------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 14,658 14,950 14,573 15,325 17,503 16,373
Total Operating Expenses 7,321 7,524 7,261 7,675 8,326 8,242
Restructuring-Related Items (1) 130 (47) (22) 27 (20) (3)
------------- ---------- ---------- ---------- --------- ----------
ADJUSTED OPERATING EXPENSES 7,451 7,477 7,239 7,702 8,306 8,239
OPERATING MARGIN 7,207 7,473 7,334 7,623 9,197 8,134
------------- ---------- ---------- ---------- --------- ----------
Provisions for Benefits, Claims and Credit Losses 2,777 2,941 2,890 2,900 3,002 3,018
Effect of Credit Card Securitization Activity 588 570 552 559 519 469
------------- ---------- ---------- ---------- --------- ----------
ADJUSTED PROVISIONS FOR BENEFITS, CLAIMS AND CREDIT LOSSES 3,365 3,511 3,442 3,459 3,521 3,487
CORE INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 3,842 3,962 3,892 4,164 5,676 4,647
Taxes on Core Income 1,367 1,420 1,386 1,489 2,019 1,617
Minority Interest, Net of Income Taxes 60 65 56 70 55 23
------------- ---------- ---------- ---------- --------- ----------
CORE INCOME 2,415 2,477 2,450 2,605 3,602 3,007
Restructuring-Related Items After-tax (1) 74 (29) (15) 17 (12) (2)
Cumulative Effect of Accounting Changes (2) (127) - - - - -
------------- ---------- ---------- ---------- --------- ----------
NET INCOME $ 2,362 $ 2,448 $ 2,435 $ 2,622 $ 3,590 $ 3,005
============= ========== ========== ========== ========= ==========
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
------------------- ------------ ------------ -----------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 11% $ 28,450 $ 32,888 16%
Effect of Credit Card Securitization Activity (18%) 1,158 988 (15%)
------------ ------------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 10% 29,608 33,876 14%
Total Operating Expenses 10% 14,845 16,568 12%
Restructuring-Related Items (1) (94%) 83 (23) NM
------------ ------------
ADJUSTED OPERATING EXPENSES 10% 14,928 16,545 11%
OPERATING MARGIN 9% 14,680 17,331 18%
Provisions for Benefits, Claims and Credit Losses 3% 5,718 6,020 5%
Effect of Credit Card Securitization Activity (18%) 1,158 988 (15%)
------------ ------------
ADJUSTED PROVISIONS FOR BENEFITS, CLAIMS AND CREDIT LOSSES (1%) 6,876 7,008 2%
CORE INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 17% 7,804 10,323 32%
Taxes on Core Income 14% 2,787 3,636 30%
Minority Interest, Net of Income Taxes (65%) 125 78 (38%)
------------ ------------
CORE INCOME 21% 4,892 6,609 35%
Restructuring-Related Items After-tax (1) (93%) 45 (14) NM
Cumulative Effect of Accounting Changes (2) - (127) - NM
------------ ------------
NET INCOME 23% $ 4,810 $ 6,595 37%
============ ============
</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 and $22 million pretax ($14 million
after-tax) in the 2000 second 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, and $29 million
pretax ($19 million after-tax) in the 2000 second 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)
--------------------- -----------------------------------------------------------------
2Q 2000 2Q 2000 1Q 2000 2Q 1999
--------------------- ------------------- -------------------- -------------------
<S> <C> <C> <C> <C>
CITIBANKING NORTH AMERICA $ 7.2 $ 33 $ 48 $ 92
Ratio 0.46% 0.67% 1.22%
MORTGAGE BANKING 35.8 709 719 575
Ratio 1.98% 2.29% 2.09%
U.S. BANKCARDS 78.4 922 1,058 954
Ratio 1.18% 1.45% 1.36%
OTHER CARDS 2.4 31 29 24
Ratio 1.24% 1.21% 1.08%
CITIFINANCIAL 17.3 229 216 172
Ratio 1.32% 1.33% 1.26%
EUROPE, MIDDLE EAST AND AFRICA 17.0 868 875 899
Ratio 5.09% 5.26% 5.46%
ASIA PACIFIC 26.0 405 443 509
Ratio 1.56% 1.73% 2.17%
LATIN AMERICA 7.1 323 333 346
Ratio 4.52% 4.58% 4.32%
GLOBAL PRIVATE BANK 24.5 78 87 162
Ratio 0.32% 0.37% 0.88%
OTHER 0.1 - - 9
--------------------- ------------------- -------------------- -------------------
TOTAL MANAGED 215.8 3,598 3,808 3,742
Ratio 1.67% 1.87% 2.00%
SECURITIZATION ACTIVITIES:
SECURITIZED CREDIT CARD RECEIVABLES (44.8) (544) (702) (652)
LOANS HELD FOR SALE (8.1) (62) (31) (35)
--------------------- ------------------- -------------------- -------------------
(52.9) (606) (733) (687)
TOTAL LOANS $ 162.9 $ 2,992 $ 3,075 $ 3,055
===================== =================== ==================== ===================
Ratio 1.84% 2.03% 2.29%
<CAPTION>
AVERAGE
LOANS NET CREDIT LOSSES (1)
------------------ --------------------------------------------------------------------
2Q 2000 2Q 2000 1Q 2000 2Q 1999
------------------ -------------------- --------------------- --------------------
<S> <C> <C> <C> <C>
CITIBANKING NORTH AMERICA $ 7.1 $ 15 $ 17 $ 23
Ratio 0.86% 0.98% 1.21%
MORTGAGE BANKING 33.1 4 11 11
Ratio 0.05% 0.14% 0.17%
U.S. BANKCARDS 75.2 740 782 803
Ratio 3.96% 4.35% 4.63%
OTHER CARDS 2.3 17 16 16
Ratio 3.03% 2.98% 2.99%
CITIFINANCIAL 16.7 80 76 70
Ratio 1.93% 1.92% 2.14%
EUROPE, MIDDLE EAST AND AFRICA 16.5 65 71 70
Ratio 1.57% 1.70% 1.71%
ASIA PACIFIC 25.4 64 74 76
Ratio 1.01% 1.19% 1.33%
LATIN AMERICA 7.2 76 90 124
Ratio 4.25% 4.77% 6.17%
GLOBAL PRIVATE BANK 23.8 3 10 2
Ratio 0.05% 0.18% 0.05%
OTHER 0.1 - - 6
------------------ -------------------- --------------------- --------------------
TOTAL MANAGED 207.4 1,064 1,147 1,201
Ratio 2.06% 2.30% 2.60%
SECURITIZATION ACTIVITIES:
SECURITIZED CREDIT CARD RECEIVABLES (45.8) (441) (499) (541)
LOANS HELD FOR SALE (5.8) (28) (20) (29)
------------------ -------------------- --------------------- --------------------
(51.6) (469) (519) (570)
TOTAL LOANS $ 155.8 $ 595 $ 628 $ 631
================== ==================== ===================== ====================
Ratio 1.54% 1.71% 1.91%
</TABLE>
(1) The ratios of 90 days or more past due and net credit losses are
calculated based on end-of-period and average loans, respectively, both net of
unearned income.
Page 24
<PAGE>
DETAILS OF CREDIT LOSS EXPERIENCE
(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>
ALLOWANCE FOR CREDIT LOSSES AT BEGINNING OF PERIOD $ 6,617 $ 6,662 $ 6,743 $ 6,706 $ 6,679 $ 6,657
---------- ----------- ----------- ----------- ------------ -----------
PROVISION FOR CREDIT LOSSES
Consumer 617 679 594 594 627 580
Commercial 112 111 38 92 124 131
---------- ----------- ----------- ----------- ------------ -----------
729 790 632 686 751 711
---------- ----------- ----------- ----------- ------------ -----------
GROSS CREDIT LOSSES
Consumer 694 771 743 737 775 766
Commercial 132 135 104 158 143 155
---------- ----------- ----------- ----------- ------------ -----------
826 906 847 895 918 921
---------- ----------- ----------- ----------- ------------ -----------
CREDIT RECOVERIES
Consumer 118 140 145 136 147 171
Commercial 20 24 16 57 19 24
---------- ----------- ----------- ----------- ------------ -----------
138 164 161 193 166 195
---------- ----------- ----------- ----------- ------------ -----------
NET CREDIT LOSSES 688 742 686 702 752 726
---------- ----------- ----------- ----------- ------------ -----------
Other -- net 4 33 17 (11) (21) 94
---------- ----------- ----------- ----------- ------------ -----------
ALLOWANCE FOR CREDIT LOSSES AT END OF PERIOD $ 6,662 $ 6,743 $ 6,706 $ 6,679 $ 6,657 $ 6,736
========== =========== =========== =========== ============ ===========
Net consumer credit losses $576 $631 $598 $601 $628 $595
As a percentage of average consumer loans 1.79% 1.91% 1.74% 1.68% 1.71% 1.54%
Net commercial credit losses $112 $111 $88 $101 $124 $131
As a percentage of average commercial loans 0.49% 0.48% 0.37% 0.42% 0.52% 0.51%
ALLOWANCE FOR CREDIT LOSSES
Consumer $ 3,355 $ 3,436 $ 3,449 $ 3,431 $ 3,409 $ 3,391
Commercial 3,307 3,307 3,257 3,248 3,248 3,345
---------- ----------- ----------- ----------- ------------ -----------
Total Allowance for Credit Losses $ 6,662 $ 6,743 $ 6,706 $ 6,679 $ 6,657 $ 6,736
========== =========== =========== =========== ============ ===========
ALLOWANCE AS A PERCENT OF TOTAL LOANS
Consumer 2.58% 2.57% 2.49% 2.32% 2.25% 2.08%
Commercial 3.43% 3.35% 3.30% 3.37% 3.19% 3.01%
Total 2.94% 2.90% 2.83% 2.73% 2.63% 2.46%
</TABLE>
Page 25
<PAGE>
CITIGROUP SUPPLEMENTAL DATA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q
1999 1999 1999 999 2000 2000
--------- ----------- ---------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
CASH-BASIS AND RENEGOTIATED LOANS
COMMERCIAL CASH-BASIS LOANS
Collateral Dependent (at lower of cost or collateral value) (1) $ 358 $ 214 $ 277 $ 241 $ 237 $ 210
Other 1,277 1,341 1,232 1,162 1,218 1,428
--------- ----------- ---------- --------- --------- ---------
Total Commercial Cash-Basis Loans $ 1,635 $ 1,555 $ 1,509 $ 1,403 $ 1,455 $ 1,638
========= =========== ========== ========= ========= =========
COMMERCIAL CASH-BASIS LOANS
Emerging Markets $ 1,095 $ 1,197 $ 1,154 $ 1,044 $ 1,066 $ 1,132
Global Relationship Banking 308 279 302 304 319 465
Insurance Subsidiaries 218 66 40 41 59 38
Investment Activities 14 13 13 14 11 3
--------- ----------- ---------- --------- --------- ---------
Total Commercial Cash-Basis Loans $ 1,635 $ 1,555 $ 1,509 $ 1,403 $ 1,455 $ 1,638
========= =========== ========== ========= ========= =========
COMMERCIAL RENEGOTIATED LOANS $ 47 $ 50 $ 68 $ 59 $ 46 $ 27
========= =========== ========== ========= ========= =========
CONSUMER LOANS ON WHICH ACCRUAL OF INTEREST
HAS BEEN SUSPENDED $ 2,252 $ 2,259 $ 2,214 $ 2,230 $ 2,217 $ 2,191
========= =========== ========== ========= ========= =========
OTHER REAL ESTATE OWNED
Consumer (2) $ 217 $ 213 $ 211 $ 204 $ 189 $ 180
--------- ----------- ---------- --------- --------- ---------
Emerging Markets 26 28 50 44 43 43
Global Relationship Banking 212 178 178 156 141 135
Insurance Subsidiaries 217 420 420 286 285 89
--------- ----------- ---------- --------- --------- ---------
Total Commercial (2) 455 626 648 486 469 267
--------- ----------- ---------- --------- --------- ---------
Corporate/Other 8 8 8 14 9 8
--------- ----------- ---------- --------- --------- ---------
Total $ 680 $ 847 $ 867 $ 704 $ 667 $ 455
========= =========== ========== ========= ========= =========
ASSETS PENDING DISPOSITION (3) $ 95 $ 89 $ 87 $ 86 $ 97 $ 93
========= =========== ========== ========= ========= =========
</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>
MANAGED ASSETS AND INSURANCE INVESTMENTS
(In billions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q
1999 1999 1999 1999 2000
----------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
SSB Citi Asset Management Group $ 351.0 $ 360.3 $ 363.7 $ 377.3 $ 387.9
SSB - Financial Consultant managed accounts 26.8 29.5 31.6 43.6 55.4
Travelers Life and Annuity 26.6 27.3 27.5 27.4 29.8
----------- ------------ ------------ ------------ -----------
Total assets managed for third parties 404.4 417.1 422.8 448.3 473.1
Consulting Group externally managed assets 107.4 113.6 113.0 126.2 133.1
Other investments held by Insurance companies 39.0 39.3 38.6 37.5 41.3
----------- ------------ ------------ ------------ -----------
Total managed assets and insurance investments (1) $ 550.8 $ 570.0 $ 574.4 $ 612.0 $ 647.5
=========== ============ ============ ============ ===========
2Q 2000 VS.
2Q 2Q 1999 INCREASE/
2000 (DECREASE)
---------- ------------------------
<S> <C> <C>
SSB Citi Asset Management Group $ 388.6 8%
SSB - Financial Consultant managed accounts 58.2 97%
Travelers Life and Annuity 29.6 8%
----------
Total assets managed for third parties 476.4 14%
Consulting Group externally managed assets 135.8 20%
Other investments held by Insurance companies 39.1 (1%)
----------
Total managed assets and insurance investments (1) $ 651.3 14%
==========
INSURANCE INVESTMENT PORTFOLIO
(In millions of dollars)
1Q 2Q 3Q 4Q 1Q
1999 1999 1999 1999 2000
----------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
Fixed-income investments:
Available for sale, at market:
Mortgage-backed securities - principally
obligations of U.S. Government agencies $ 9,595 $ 9,294 $ 9,058 $ 9,010 $ 9,382
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies 3,728 3,324 2,983 2,778 3,033
Corporates (including redeemable preferreds) 27,346 27,504 27,606 26,635 27,317
Obligations of states and political subdivisions 11,023 10,672 10,362 9,981 10,049
Debt securities issued by foreign governments 1,822 1,842 1,631 1,711 1,579
Held to maturity, at amortized cost 28 26 24 33 32
----------- ------------ ------------ ------------ -----------
Total fixed income 53,542 52,662 51,664 50,148 51,392
Equity securities, at market 1,685 1,819 1,905 2,121 2,111
Short-term and other 6,651 5,301 5,524 5,322 6,478
----------- ------------ ------------ ------------ -----------
Total investments held by Insurance companies $ 61,878 $ 59,782 $ 59,093 $ 57,591 $ 59,981
=========== ============ ============ ============ ===========
After tax unrealized gains / (losses) on invested assets $ 943 $ 100 $ (251) $ (587) $ (218)
=========== ============ ============ ============ ===========
2Q 2000 VS.
2Q 2Q 1999 INCREASE/
2000 (DECREASE)
---------- -------------------
<S> <C> <C>
Fixed-income investments:
Available for sale, at market:
Mortgage-backed securities - principally
obligations of U.S. Government agencies $ 9,371 1%
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies 2,692 (19%)
Corporates (including redeemable preferreds) 27,868 1%
Obligations of states and political subdivisions 9,963 (7%)
Debt securities issued by foreign governments 1,626 (12%)
Held to maturity, at amortized cost 31 19%
----------
Total fixed income 51,551 (2%)
Equity securities, at market 2,013 11%
Short-term and other 6,581 24%
----------
Total investments held by Insurance companies $ 60,145 1%
==========
After tax unrealized gains / (losses) on invested assets $ (391) NM
==========
</TABLE>
(1) Includes jointly managed assets of $39, $41, $44 and $49 billion in the
1999 first, second, third and fourth quarters respectively, and $54 and $57
billion, respectively, for the 2000 first and second quarters.
NM - Not meaningful
Page 27
<PAGE>
GLOBAL CONSUMER
WORLDWIDE CARDS SUPPLEMENTAL DATA(1)
(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>
Adjusted Revenues, Net of Interest Expense $ 2,418 $ 2,422 $ 2,460 $ 2,559 $ 2,538 $ 2,549
Adjusted Operating Expenses 963 962 973 995 1,031 1,020
Adjusted Provision for Loan Losses (2) 925 938 914 898 898 848
------------- ---------- ------------ ---------- ----------- -----------
Core Income Before Taxes 530 522 573 666 609 681
Income Taxes 195 194 212 243 225 252
------------- ---------- ------------ ---------- ----------- -----------
Core Income $ 335 $ 328 $ 361 $ 423 $ 384 $ 429
============= ========== ============ ========== =========== ===========
Managed Average Assets (in billions of dollars) $ 82 $ 82 $ 84 $ 85 $ 88 $ 92
============= ========== ============ ========== =========== ===========
Return on Managed Assets 1.66% 1.60% 1.71% 1.97% 1.76% 1.88%
============= ========== ============ ========== =========== ===========
KEY INDICATORS
(in billions of dollars)
End of Period Managed Receivables $ 80.1 $ 81.5 $ 81.8 $ 85.8 $ 85.6 $ 91.7
Total EOP Open Accounts (in millions) 52.9 52.5 52.5 52.8 53.7 55.1
Total Sales $ 46.0 $ 51.2 $ 51.8 $ 55.2 $ 54.0 $ 61.1
Coincident Net Credit Loss Ratio % 4.73% 4.64% 4.45% 4.36% 4.30% 3.90%
Loans 90+ Days Past Due % 1.55% 1.47% 1.47% 1.52% 1.53% 1.25%
GEOGRAPHIC DISTRIBUTION
CORE INCOME
Cards $ 278 $ 279 $ 301 $ 325 $ 296 $ 308
International 57 49 60 98 88 121
============= ========== ============ ========== =========== ===========
Total $ 335 $ 328 $ 361 $ 423 $ 384 $ 429
============= ========== ============ ========== =========== ===========
AVERAGE LOANS:
Cards $ 69.3 $ 71.6 $ 71.7 $ 72.3 $ 74.3 $ 77.5
International 8.6 8.7 8.9 9.2 9.6 9.9
============= ========== ============ ========== =========== ===========
Total $ 77.9 $ 80.3 $ 80.6 $ 81.5 $ 83.9 $ 87.4
============= ========== ============ ========== =========== ===========
TOTAL EOP OPEN ACCOUNTS (IN MILLIONS)
Cards 42.9 42.5 42.1 42.1 42.4 43.7
International 10.0 10.0 10.4 10.7 11.3 11.4
============= ========== ============ ========== =========== ===========
Total 52.9 52.5 52.5 52.8 53.7 55.1
============= ========== ============ ========== =========== ===========
TOTAL SALES
Cards $ 39.6 $ 44.1 $ 44.3 $ 47.2 $ 45.7 $ 52.1
International 6.4 7.1 7.5 8.0 8.3 9.0
============= ========== ============ ========== =========== ===========
Total $ 46.0 $ 51.2 $ 51.8 $ 55.2 $ 54.0 $ 61.1
============= ========== ============ ========== =========== ===========
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
Cards $ 798 $ 819 $ 790 $ 800 $ 798 $ 757
International 111 110 115 95 101 90
============= ========== ============ ========== =========== ===========
Total $ 909 $ 929 $ 905 $ 895 $ 899 $ 847
============= ========== ============ ========== =========== ===========
<CAPTION>
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
----------------- ----------- ------------- ---------------------
<S> <C> <C> <C> <C>
Adjusted Revenues, Net of Interest Expense 5% $ 4,840 $ 5,087 5%
Adjusted Operating Expenses 6% 1,925 2,051 7%
Adjusted Provision for Loan Losses (2) (10%) 1,863 1,746 (6%)
----------- -------------
Core Income Before Taxes 30% 1,052 1,290 23%
Income Taxes 30% 389 477 23%
----------- -------------
Core Income 31% $ 663 $ 813 23%
=========== =============
Managed Average Assets (in billions of dollars) 12% $ 82 $ 90 10%
=========== =============
Return on Managed Assets 1.63% 1.82%
KEY INDICATORS
(in billions of dollars)
End of Period Managed Receivables 13%
Total EOP Open Accounts (in millions) 5%
Total Sales 19%
Coincident Net Credit Loss Ratio %
Loans 90+ Days Past Due %
GEOGRAPHIC DISTRIBUTION
CORE INCOME
Cards 10% $ 557 $ 604 8%
International 147% 106 209 97%
=========== =============
Total 31% $ 663 $ 813 23%
=========== =============
AVERAGE LOANS:
Cards 8% $ 70.5 $ 75.9 8%
International 14% $ 8.7 9.8 13%
=========== =============
Total 9% $ 79.2 $ 85.7 8%
=========== =============
TOTAL EOP OPEN ACCOUNTS (IN MILLIONS)
Cards 3%
International 14%
Total 5%
TOTAL SALES
Cards 18% $ 83.7 $ 97.8 17%
International 27% 13.5 17.3 28%
=========== =============
Total 19% $ 97.2 $ 115.1 18%
=========== =============
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
Cards (8%) $ 1,617 $ 1,555 (4%)
International (18%) 221 191 (14%)
=========== =============
Total (9%) $ 1,838 $ 1,746 (5%)
=========== =============
</TABLE>
(1) Worldwide Cards consists of the Cards business segment and card operations
included within the International consumer segments.
(2) On a managed basis.
Page 28
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
SUPPLEMENTAL PRODUCT AND REGIONAL RESULTS
(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>
PRODUCT VIEW
TOTAL REVENUE
Global Corporate Finance (1) $ 3,347 $ 3,175 $ 2,817 $ 2,951 $ 3,799 $ 3,631
Transaction Services (2) 696 712 750 772 825 868
Private Client 1,404 1,458 1,466 1,605 1,916 1,686
Commercial Lines 1,534 1,558 1,578 1,595 1,568 1,626
Other 155 59 (166) 35 92 44
---------- ------------- ---------- ------------ ---------- -----------
Total GCIB $ 7,136 $ 6,962 $ 6,445 $ 6,958 $ 8,200 $ 7,855
========== ============= ========== ============ ========== ===========
CORE INCOME
Global Corporate Finance (1) $ 826 $ 755 $ 702 $ 753 $ 1,062 $ 842
Transaction Services (2) 39 40 51 55 93 130
Private Client 211 225 215 262 376 265
Commercial Lines 189 201 255 200 240 267
Other 74 23 (92) 14 58 33
---------- ------------- ---------- ------------ ---------- ----------
Total GCIB $ 1,339 $ 1,244 $ 1,131 $ 1,284 $ 1,829 $ 1,537
========== ============= ========== ============ ========== ===========
REGIONAL VIEW
TOTAL REVENUE
JENA (3) $ 5,912 $ 5,722 $ 5,245 $ 5,798 $ 6,783 $ 6,434
Emerging Markets 1,224 1,240 1,200 1,160 1,417 1,421
---------- ------------- ---------- ------------ ---------- ----------
Total GCIB $ 7,136 $ 6,962 $ 6,445 $ 6,958 $ 8,200 $ 7,855
========== ============= ========== ============ ========== ===========
CORE INCOME
JENA (3) $ 1,025 $ 923 $ 792 $ 1,024 $ 1,397 $ 1,144
Emerging Markets 314 321 339 260 432 393
---------- ------------- ---------- ------------ ---------- ----------
Total GCIB $ 1,339 $ 1,244 $ 1,131 $ 1,284 $ 1,829 $ 1,537
========== ============= ========== ============ ========== ===========
TRADING RELATED REVENUE
Fixed Income $ 851 $ 582 $ 443 $ 434 $ 695 $ 533
Equities 292 395 292 312 508 436
Foreign Exchange 440 313 316 336 339 352
All Other 305 134 (51) 94 104 63
---------- ------------- ---------- ------------ ---------- -----------
Total Trading Related Revenue $ 1,888 $ 1,424 $ 1,000 $ 1,176 $ 1,646 $ 1,384
========== ============= ========== ============ ========== ===========
Principal Transactions $ 1,647 $ 1,114 $ 816 $ 986 $ 1,512 $ 1,250
Net Interest Revenue 241 310 184 190 134 134
---------- ------------- ---------- ------------ ---------- -----------
Total Trading Related Revenue $ 1,888 $ 1,424 $ 1,000 $ 1,176 $ 1,646 $ 1,384
========== ============= ========== ============ ========== ===========
2Q 2000 VS. YTD YTD YTD 2Q 2000 VS.
2Q 1999 INCREASE/ 2Q 2Q YTD 2Q 1999 INCREASE/
(DECREASE) 1999 2000 (DECREASE)
-------------------- --------------- ---------------- ------------------------
<S> <C> <C> <C> <C>
PRODUCT VIEW
TOTAL REVENUE
Global Corporate Finance (1) 14% $ 6,522 $ 7,430 14%
Transaction Services (2) 22% 1,408 1,693 20%
Private Client 16% 2,862 3,602 26%
Commercial Lines 4% 3,092 3,194 3%
Other (25%) 214 136 (36%)
--------------- ----------------
Total GCIB 13% $ 14,098 $ 16,055 14%
=============== ================
CORE INCOME
Global Corporate Finance (1) 12% $ 1,581 $ 1,904 20%
Transaction Services (2) 225% 79 223 182%
Private Client 18% 436 641 47%
Commercial Lines 33% 390 507 30%
Other 43% 97 91 (6%)
--------------- ----------------
Total GCIB 24% $ 2,583 $ 3,366 30%
=============== ================
REGIONAL VIEW
TOTAL REVENUE
JENA (3) 12% $ 11,634 $ 13,217 14%
Emerging Markets 15% 2,464 2,838 15%
--------------- ----------------
Total GCIB 13% $ 14,098 $ 16,055 14%
=============== ================
CORE INCOME
JENA (3) 24% $ 1,948 $ 2,541 30%
Emerging Markets 22% 635 825 30%
--------------- ----------------
Total GCIB 24% $ 2,583 $ 3,366 30%
=============== ================
TRADING RELATED REVENUE
Fixed Income (8%) $ 1,433 $ 1,228 (14%)
Equities 10% 687 944 37%
Foreign Exchange 12% 753 691 (8%)
All Other (53%) 439 167 (62%)
--------------- ----------------
Total Trading Related Revenue (3%) $ 3,312 $ 3,030 (9%)
=============== ================
Principal Transactions 12% $ 2,761 $ 2,762 0%
Net Interest Revenue (57%) 551 268 (51%)
--------------- ----------------
Total Trading Related Revenue (3%) $ 3,312 $ 3,030 (9%)
=============== ================
</TABLE>
NM Not meaningful
(1) Global Corporate Finance includes Global Fixed Income, FX and Structured
Products, Global Equities, Global Investment Banking, Emerging Markets (EM)
Sales & Trading, EM Local Finance, Loan Portfolio, Phibro, Robinson
Humphrey, Futures, Municipals & Stock Loans.
(2) Transaction Services includes Cash Management, Trade Finance and Worldwide
Securities Services.
(3) JENA includes Japan, Western Europe, North America and Commercial Lines.
Page 29
<PAGE>
CITICORP SUPPLEMENTAL DATA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q
1999 1999 1999 1999 2000
------------ ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
NET INTEREST REVENUE STATISTICS
(TAXABLE EQUIVALENT BASIS)
Net Interest Revenue $ 3,587 $ 3,651 $ 3,660 $ 3,714 $ 3,713
Effect of Credit Card Securitization Activity 1,084 1,020 1,043 1,008 1,019
------------ ------------ ----------- ------------ ------------
Total Adjusted $ 4,671 $ 4,671 $ 4,703 $ 4,722 $ 4,732
============ ============ =========== ============ ============
Average Interest Earning Assets (in billions of dollars) $ 300.8 $ 304.4 $ 307.9 $ 313.4 $ 324.6
Effect of Credit Card Securitization Activity 44.3 46.7 47.9 48.6 48.2
------------ ------------ ----------- ------------ ------------
Total Adjusted $ 345.1 $ 351.1 $ 355.8 $ 362.0 $ 372.8
============ ============ =========== ============ ============
Net Interest Margin (%) 4.84% 4.81% 4.72% 4.70% 4.60%
Effect of Credit Card Securitization Activity 0.65% 0.53% 0.52% 0.47% 0.51%
------------ ------------ ----------- ------------ ------------
Total Adjusted 5.49% 5.34% 5.24% 5.17% 5.11%
============ ============ =========== ============ ============
<CAPTION>
YTD YTD
2Q 2Q 2Q
2000 1999 2000
------------- ---------- ----------
<S> <C> <C> <C>
NET INTEREST REVENUE STATISTICS
(TAXABLE EQUIVALENT BASIS)
Net Interest Revenue $ 3,812 $ 7,238 $ 7,525
Effect of Credit Card Securitization Activity 844 2,104 1,863
------------- ---------- ----------
Total Adjusted $ 4,656 $ 9,342 $ 9,388
============= ========== ==========
Average Interest Earning Assets (in billions of dollars) $ 347.0 $ 302.6 $ 335.8
Effect of Credit Card Securitization Activity 45.8 45.5 47.0
------------- ---------- ----------
Total Adjusted $ 392.8 $ 348.1 $ 382.8
============= ========== ==========
Net Interest Margin (%) 4.42% 4.82% 4.51%
Effect of Credit Card Securitization Activity 0.35% 0.59% 0.42%
------------- ---------- ----------
Total Adjusted 4.77% 5.41% 4.93%
============= ========== ==========
</TABLE>
Page 30
<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: July 20, 2000 CITIGROUP INC.
By: /s/ Roger W. Trupin
-------------------------------
Name: Roger W. Trupin
Title: Controller
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