Citigroup (C)

CIB Net Income—Regional View

NM

Not meaningful

30

        CIB net income increased in the 2005 third quarter compared to the 2004 third quarter primarily due to increases in EMEA, North America, and Asia (excluding Japan), partially offset by declines in Latin America, Japan and Mexico. CIB net income increased in the 2005 nine months primarily due to the absence of the 2004 second quarter WorldCom and Litigation Reserve Charge in North America, partially offset by decreases in EMEA, Mexico, Japan, and Latin America. North America (excluding Mexico) net income increased $136 million in the 2005 third quarter due to higher Fixed Income Markets, Equity Markets and Investment Banking revenues. EMEA net income increased $234 million in the 2005 third quarter primarily due to strong Fixed Income Markets revenues and the absences of prior-year legal reserves. EMEA net income decreased $169 million in the 2005 nine months primarily due to the $378 million after-tax gain on the sale of Samba recorded in the prior-year period. Excluding the impact of the gain on Samba, EMEA net income increased $209 million in the 2005 nine months, reflecting strong increases in Fixed Income Markets and Transaction Services. Mexico net income decreased $21 million and $140 million in the 2005 third quarter and nine months, respectively, as increased corporate customer activity was offset by loan loss reserve releases recorded in the prior-year periods as a result of improving credit quality. Mexico net income results in the 2005 third quarter also reflect the positive impact of a Value Added Tax refund in the amount of $11 million after-tax. Asia (excluding Japan) net income increased $73 million and $15 million in the 2005 third quarter and nine months, respectively, primarily due to increased Equities Markets revenues from derivative products and cash trading, as well as an increase in Fixed Income Markets revenues in the 2005 third quarter. Japan net income decreased $33 million and $111 million in the 2005 third quarter and nine months, respectively, due to decreases in Fixed Income and Equities Markets revenues and the absences of prior-year third quarter gain on the partial sales of Nikko Cordial shares. Latin America net income decreased $44 million and $91 million in the 2005 third quarter and nine months, respectively, primarily due to loan loss reserve releases recorded in the prior periods as a result of improving credit quality in Argentina and Brazil, as well as a decline in corporate finance deals completed.

CIB Net Income—Regional View

NM

Not meaningful

27

        CIB net income increased in the 2005 second quarter and six months primarily due to the absence of the 2004 second quarter WorldCom and Litigation Reserve Charge in North America, partially offset by decreases in EMEA, Mexico, Asia (excluding Japan), and Japan. EMEA net income decreased $326 million in the 2005 second quarter and $403 million in the 2005 six months primarily due to the $378 million after-tax gain on the sale of Samba recorded in the prior-year periods. Excluding the impact of the gain on Samba, EMEA net income increased $52 million in the 2005 second quarter, reflecting strong increases in Fixed Income Markets and Transaction Services, and lower costs of credit. Mexico net income decreased $108 million and $119 million in the 2005 second quarter and six months, respectively, primarily due to loan loss reserve releases recorded in the prior-year periods as a result of improving credit quality. Asia (excluding Japan) net income decreased $72 million and $58 million in the 2005 second quarter and six months, primarily due to lower revenues from Fixed Income Markets, reflecting the negative impact of a flattening yield curve. Japan net income decreased $33 million and $78 million in the 2005 second quarter and six months, respectively, due to decreases in Fixed Income and Equities Markets. Latin America net income increased $10 million in the 2005 second quarter, primarily due to higher revenues from Fixed Income Markets and Transaction Services. Latin America net income decreased $47 million in the 2005 six months primarily due to loan loss reserve releases recorded in the prior period as a result of improving credit quality in Argentina and Brazil.

CIB Net Income—Regional View

        CIB net income decreased in the 2005 first quarter primarily due to decreases in EMEA, Latin America, Japan and Mexico, partially offset by increases in North America (excluding Mexico) and Asia. EMEA net income decreased $76 million in the 2005 first quarter, primarily due to increased expenses related to repositioning costs of $90 million after-tax. Latin America net income decreased $57 million in the 2005 first quarter, primarily due to the absence of general loan loss reserve releases recorded in the 2004 first quarter. Japan net income decreased $45 million in the 2005 first quarter, primarily due to decreases in Fixed Income Markets. Mexico net income decreased $11 million in the 2005 first quarter, primarily due to lower Fixed Income Markets on interest rate trading losses. North America (excluding Mexico) net income increased $147 million, primarily due to higher revenues in Fixed Income Markets and Investment Banking, partially offset by declines in Equity Markets. Asia net income increased $14 million primarily due to increases in Transaction Services.

24