Fourth Quarter 2008 Earnings Review
January 16, 2009
On February 27, 2009, Citi announced a fourth quarter
2008 goodwill impairment charge and a further
impairment to the intangible asset related to Nikko Asset
Management. These pre-tax charges of approximately
$9.9 billion are not reflected in the fourth quarter 2008
press release, financial supplement and investor
presentation, each dated January 16, 2009. For updated
financial information, please refer to the Citigroup, Inc.
2008 Form 10-K filed with the U.S. Securities and
Exchange Commission on February 27, 2009.
1
Fourth Quarter Summary
Continued Securities & Banking
revenue marks
Outsized private equity and equity
investment revenue losses
Volatile in credit spreads
Higher cost of credit; LLR build of $6.0B
(1) For a list of Securities and Banking revenue marks please refer to page 29. (2) Losses on Securities and Banking private equity and equity
investments. (3) Credit value adjustment on the fair value of derivative instruments with non-monoline counterparties.
(4) Loan Loss Reserves (LLR) includes Policyholder benefits & claims (PB&C). Note: Totals may not sum due to rounding.
Negatives
Higher net interest margin
Lower expenses and assets
Stable deposits
Strong Tier 1 ratio
Positives
2.4
6.6
(7.8)
6.1
15.3
(2.5)
(5.3)
21.2
5.6
(10.3)
3.8
(8.3)
2.0
S&B Rev.
Marks
S&B PE &
Eq. Inv.
Deriv.
CVA
Rest of
Revenues
GAAP
Revenues
Expenses
NCLs
LLR
Taxes &
Min. Int.
Disc. Ops. 4Q'08 Net
Income
(1)
(4)
+
+
+
Managed 23.6
GAAP
Restructuring
charges
Impact from
securitizations
(2)
(3)
$0.6 Nikko AM
Impairment
$B
2
Summary Income Statement
($B, except EPS)
4Q’08
4Q’07
%U
Net Interest Revenue
$13.3
$12.2
8%
Non-Interest Revenue
(7.7)
(5.8)
(32)
Net Revenues
5.6
6.4
(13)
Operating Expenses
15.3
16.1
(5)
Credit Losses, Claims & Benefits
12.7
7.7
66
Income Taxes and Minority Interest
(10.3)
(7.3)
(41)
Income from Cont. Ops.
$(12.1)
$(10.0)
(21)%
Net Income
(8.3)
(9.8)
16
Preferred Share Dividend
$0.9
$0.0
NM
Diluted EPS from Cont. Ops.