Citigroup (C)

Benefits, Claims, and Credit Losses

        Benefits, claims, and credit losses were $2.8 billion in the 2005 third quarter and $6.9 billion for the nine-month period of 2005, up $1.6 billion, and up $1.4 billion, or 25%, from the 2004 third quarter and nine-month periods, respectively.

        Global Consumer provisions for benefits, claims, and credit losses of $2.8 billion in the 2005 third quarter and $6.9 billion for the 2005 nine-month period were up $1.1 billion, or 68%, and $602 million, or 10%, from the 2004 third quarter and year-to-date period, respectively, due to the $490 million charge to standardize the EMEA consumer loan write-off policies with the global write-off policy, a build of $260 million related to Hurricane Katrina and the absence of $436 million in net unallocated loan loss reserve releases recorded in the third quarter of 2004. Total net credit losses (excluding Commercial Business) were $2.919 billion, and the related loss ratio was 2.94% in the third quarter of 2005, as compared to $1.892 billion and 2.09% in the 2004 third quarter. The consumer loan delinquency ratio (90 days or more past due) decreased to 1.52% at September 30, 2005 from 2.06% at September 30, 2004. See page 47 for a reconciliation of total consumer credit information.

        Corporate and Investment Banking provision for credit losses of $43 million in the 2005 third quarter and $(27) million for the 2005 nine-month period were up $448 million and $785 million from the 2004 third quarter and year-to-date period, respectively. The Company increased CIB's reserve for credit losses by $150 million ($50 million for funded exposures and $100 million for unfunded lending commitments) in the 2005 third quarter due to an increase in exposures and credit risk in the portfolio.

        Corporate cash-basis loans at September 30, 2005 and 2004 were $1.2 billion and $2.2 billion, respectively, while the corporate Other Real Estate Owned (OREO) portfolio totaled $153 million and $95 million, respectively. The decrease in corporate cash-basis loans from September 30, 2004, was related to improvements in the overall credit environment and write-offs, as well as sales of loans and paydowns in the portfolio. Corporate cash-basis loans at September 30, 2005 decreased $386 million from June 30, 2005.

Benefits, Claims, and Credit Losses

Benefits, claims, and credit losses were $7.1 billion, $8.9 billion and $11.0 billion in 2004, 2003 and 2002, respectively.  The 2004 charge was down $1.8 billion from 2003, which was down $2.0 billion from 2002.  Policyholder benefits and claims in 2004 increased $6 million from 2003.  The 2003 charge was down $99 million from 2002.  The provision for credit losses decreased $1.8 billion or 23% from 2003 to $6.2 billion in 2004, reflecting continued improvement in credit quality in both consumer and corporate businesses, partially offset by the impact of acquisitions.  There was a $1.9 billion decrease from 2003 to 2002 due to the improvement in the global credit environment.

Global Consumer provisions for benefits, claims, and credit losses of $8.1 billion in 2004 were down $85 million or 1% from 2003, reflecting decreases in Retail Banking and Consumer Finance, partially offset by increases in Cards.  Total net credit losses (excluding Commercial Business) were $8.257  billion and the related loss ratio was 2.31% in 2004, as compared to $7.093 billion and 2.38% in 2003 and $6.740 billion and 2.67% in 2002.  The consumer loan delinquency ratio (90 days or more past due) decreased to 2.02% at December 31, 2004 from 2.42% at December 31, 2003 and 2.40% at December 31, 2002.

The CIB provision for credit losses in 2004 decreased $1.7 billion from 2003, which decreased $1.5 billion from 2002.  The decrease reflects this year’s continually improving credit environment.

Corporate cash-basis loans at December 31, 2004, 2003 and 2002 were $1.906 billion, $3.419 billion, and $3.995 billion, respectively.  The decrease in cash-basis loans from 2003 reflects improved credit quality, write-offs against previously established reserves, as well as repayments.  Corporate cash-basis loans at December 31, 2003 decreased $0.6 billion from December 31, 2002 primarily due to the improving credit environment.

Benefits, Claims, and Credit Losses

        Benefits, claims, and credit losses were $2.0 billion in the 2005 second quarter and $4.1 billion for the six-month period of 2005, up $221 million, or 12%, and down $206 million, or 5%, from the 2004 second quarter and six-month periods, respectively.

        Global Consumer provisions for benefits, claims, and credit losses of $2.0 billion in the 2005 second quarter and $4.1 billion for the 2005 six-month period were down $113 million, or 5%, and $523 million, or 11%, from the 2004 second quarter and year-to-date period, respectively, due to a favorable overall credit environment, reflecting decreases in Cards and Consumer Finance, partially offset by increases in Retail Banking. Total net credit losses (excluding Commercial Business) were $1.746 billion, and the related loss ratio was 1.80% in the second quarter of 2005, as compared to $2.116 billion and 2.44% in the 2004 second quarter. The consumer loan delinquency ratio (90 days or more past due) decreased to 1.81% at June 30, 2005 from 2.01% at June 30, 2004. See page 43 for a reconciliation of total consumer credit information.

        Corporate and Investment Banking reported net recoveries in the provision for credit losses of $(14) million in the 2005 second quarter and $(70) million in the six-month period, due to recoveries reflecting improved credit quality in the corporate loan portfolio. The Company increased its reserve for CIB's unfunded lending commitments by $100 million due to an increase in outstanding commitments.

        Corporate cash-basis loans at June 30, 2005 and 2004 were $1.6 billion and $2.6 billion, respectively, while the corporate Other Real Estate Owned (OREO) portfolio totaled $133 million and $98 million, respectively. The decrease in corporate cash-basis loans from June 30, 2004, was related to improvements in the overall credit environment and write-offs, as well as sales of loans and paydowns in the portfolio. Corporate cash-basis loans at June 30, 2005 decreased $136 million from March 31, 2005.

Benefits, Claims, and Credit Losses

Benefits, claims, and credit losses were $7.1 billion, $8.9 billion and $11.0 billion in 2004, 2003 and 2002, respectively.  The 2004 charge was down $1.8 billion from 2003, which was down $2.0 billion from 2002.  Policyholder benefits and claims in 2004 increased $6 million from 2003.  The 2003 charge was down $99 million from 2002.  The provision for credit losses decreased $1.8 billion or 23% from 2003 to $6.2 billion in 2004, reflecting continued improvement in credit quality in both consumer and corporate businesses, partially offset by the impact of acquisitions.  There was a $1.9 billion decrease from 2003 to 2002 due to the improvement in the global credit environment.

Global Consumer provisions for benefits, claims, and credit losses of $8.1 billion in 2004 were down $85 million or 1% from 2003, reflecting decreases in Retail Banking and Consumer Finance, partially offset by increases in Cards.  Total net credit losses (excluding Commercial Business) were $8.257  billion and the related loss ratio was 2.31% in 2004, as compared to $7.093 billion and 2.38% in 2003 and $6.740 billion and 2.67% in 2002.  The consumer loan delinquency ratio (90 days or more past due) decreased to 2.02% at December 31, 2004 from 2.42% at December 31, 2003 and 2.40% at December 31, 2002.

The CIB provision for credit losses in 2004 decreased $1.7 billion from 2003, which decreased $1.5 billion from 2002.  The decrease reflects this year’s continually improving credit environment.

Corporate cash-basis loans at December 31, 2004, 2003 and 2002 were $1.906 billion, $3.419 billion, and $3.995 billion, respectively.  The decrease in cash-basis loans from 2003 reflects improved credit quality, write-offs against previously established reserves, as well as repayments.  Corporate cash-basis loans at December 31, 2003 decreased $0.6 billion from December 31, 2002 primarily due to the improving credit environment.

Benefits, Claims, and Credit Losses

        Benefits, claims, and credit losses were $2.0 billion in the 2005 first quarter, down $427 million, or 17%, from the 2004 first quarter.

        Global Consumer provisions for benefits, claims, and credit losses of $2.1 billion in the 2005 first quarter were down $410 million, or 16%, from the 2004 first quarter due to a better overall credit environment, reflecting decreases in Cardsand Consumer Finance, partially offset by increases in Retail Banking. Total net credit losses (excluding Commercial Business) were $1.899 billion and the related loss ratio was 1.98% in the first quarter of 2005, as compared to $2.257 billion and 2.68% in the 2004 first quarter. The consumer loan delinquency ratio (90 days or more past due) decreased to 1.92% at March 31, 2005 from 2.27% at March 31, 2004. See page 42 for a reconciliation of total consumer credit information.

        Corporate and Investment Banking reported net recoveries in the provision for credit losses of ($56) million in the 2005 first quarter, due to recoveries reflecting improved credit quality in the corporate loan portfolio.

        Corporate cash-basis loans at March 31, 2005 and 2004 were $1.7 billion and $2.9 billion, respectively, while the corporate Other Real Estate Owned (OREO) portfolio totaled $127 million and $94 million, respectively. The decrease in corporate cash-basis loans from March 31, 2004, was related to improvements in the overall credit environment, write-offs, as well as sales of loans in the portfolio. Corporate cash-basis loans at March 31, 2005, decreased $174 million from December 31, 2004.

Benefits, Claims, and Credit Losses

        Benefits, claims, and credit losses were $10.0 billion, $11.9 billion and $13.5 billion in 2004, 2003 and 2002, respectively. The 2004 charge was down $1.9 billion from 2003, which was down $1.6 billion from 2002. Policyholder benefits and claims in 2004 decreased $94 million from 2003, primarily as a result of the absence of the pension close-out contract in Life Insurance and Annuities. The 2003 charge was up $417 million from 2002. The provision for credit losses decreased $1.8 billion or 23% from 2003 to $6.2 billion in 2004, reflecting continued improvement in credit quality in both consumer and corporate businesses, partially offset by the impact of acquisitions. There was a $1.9 billion decrease from 2003 to 2002 due to the improvement in the global credit environment.

        Global Consumer provisions for benefits, claims, and credit losses of $7.9 billion in 2004 were down $112 million or 1% from 2003, reflecting decreases in Retail Banking and Consumer Finance, partially offset by increases in Cards. Total net credit losses (excluding Commercial Business) were $8.257 billion and the related loss ratio was 2.31% in 2004, as compared to $7.093 billion and 2.38% in 2003 and $6.740 billion and 2.67% in 2002. The consumer loan delinquency ratio (90 days or more past due) decreased to 2.02% at December 31, 2004 from 2.42% at December 31, 2003 and 2.40% at December 31, 2002. See page 47 for a reconciliation of total consumer credit information.

        The GCIB provision for credit losses in 2004 decreased $1.7 billion from 2003, which decreased $1.5 billion from 2002. The decrease reflects this year's continually improving credit environment.

        Corporate cash-basis loans at December 31, 2004, 2003 and 2002 were $1.906 billion, $3.419 billion, and $3.995 billion, respectively. The decrease in cash-basis loans from 2003 reflects improved credit quality, write-offs against previously established reserves, as well as repayments. Corporate cash-basis loans at December 31, 2003 decreased $0.6 billion from December 31, 2002 primarily due to the improving credit environment.