Citigroup (C)

Asset Management Net Income—Regional View

NM

Not meaningful

        Asset Management net income decreased $26 million in the 2005 first quarter from the prior-year period, the result of decreases in North America (excluding Mexico) of $15 million, Mexico of $9 million, Japan of $3 million, and EMEA of $1 million, partially offset by an increase in Asia of $2 million.

        North America (excluding Mexico) income of $50 million in the 2005 first quarter decreased $15 million or 23% from the prior-year period, primarily reflecting a change in the profit-sharing arrangement for CAI Institutional earnings, the transfer of assets related to St. Paul and repositioning expenses, partially offset by the cumulative impact of positive net flows and the impact of positive market action. Mexico net income of $17 million in the 2005 first quarter decreased $9 million or 35% from the 2004 first quarter, primarily reflecting higher capital funding costs and lower business volumes. The net loss in Japan of $1 million in the 2005 first quarter represented a decrease in income of $3 million from the prior year, primarily reflecting costs incurred associated with the closure of the Cititrust and Banking Corporation operations in Japan, which was announced in 2004. The net loss in EMEA of $2 million in the 2005 first quarter reflects a decrease in income of $1 million from the prior-year period, while Asia net income of $4 million in the 2005 first quarter increased $2 million or 100% from the prior-year period, driven by higher performance fees. Latin America income of $11 million in the 2005 first quarter was unchanged from the year-ago period.

32

ALTERNATIVE INVESTMENTS

(1)

See Footnote (4) to the table on page 6 and discussion of Risk Capital on page 36.

        Alternative Investments reported revenues, net of interest expense, of $866 million in the 2005 first quarter, an increase of $686 million over the 2004 first quarter. Revenues, net of interest expense, consisted of the following:

(1)

Includes the changes in unrealized gains (losses) related to mark-to-market reversals for investments sold during the year.

(2)

Includes valuation adjustments and "other than temporary" impairments on private equity investments.

(3)

Includes other investment income, management fees, and funding costs.

(4)

Includes fee income. Prior to 2005, revenue was reported net of profit sharing (profit sharing was reflected in the internal Citigroup distributor's revenues).