Citigroup (C)

U.S. CONSUMER OUTLOOK

In 2008, the U.S. Consumer businesses will continue to focus on expanding its customer base, offering an integrated and innovative set of products and services, and leveraging previous acquisitions and prior strategic investments. Revenues will be affected by customer demand, the level of interest rates, credit performance, as well as the stability of the U.S. capital markets, all of which are important to cards securitizations and asset valuations. The businesses will also focus on tight expense control, productivity improvements and effective credit management.

The U.S. Consumer business could be negatively affected as discussed under “Economic Environment” on page 5.

In addition, the U.S. Consumer business is expected to operate in a challenging credit and economic environment, due to expected deterioration in credit costs across all products, particularly in the first mortgage and second mortgage portfolios. In addition, higher levels of unemployment and bankruptcy filings and lower residential real estate prices are expected. Net credit losses, delinquencies and defaults are expected to continue to trend upwards.

U.S. CONSUMER OUTLOOK

Certain of the statements below are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. See “Forward-Looking Statements” on page 97.

In 2007, the U.S. Consumer businesses will focus on continued expansion of its customer base, investments in expanding the branch network, offering a more integrated set of products and services, and the benefit of acquisitions and strategic investments made previously. The businesses will also focus on tight expense control, productivity improvements and effective credit management. Revenues and credit performance will be affected by U.S. economic conditions, including the level of interest rates, bankruptcy filings and unemployment rates.

In 2007, the U.S. Consumer business is expected to operate in a stable economic environment. Net interest revenue pressure is expected to continue, but at a lesser pace, due to the flat yield curve and the competitive pricing environment. Credit costs are expected to increase slightly as the unusually low bankruptcy filings experienced in 2006 are expected to rise back to more normalized levels. Inflation is expected to remain well-contained.

U.S. Cards—In 2007, the competitive environment is expected to remain challenging. U.S. Cards expects to generate earnings growth as managed receivables increase and expenses remain controlled through improved productivity levels and efficiencies of scale. Growth in managed receivables will be driven by new product launches and private-label expansion. Credit costs will increase slightly from the unusually favorable credit environment in 2006, reflecting increased bankruptcy filing levels.

U.S. Retail Distribution—In 2007, U.S. Retail Distribution expects to generate increases in loans, deposits and accounts, which will in turn drive