Citigroup 10-K 2012
Documents found in this filing:
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2011
Commission file number 1-9924
(Exact name of registrant as specified in its charter)
Registrants telephone number, including area code: (212) 559-1000
Securities registered pursuant to Section 12(b) of the Act: See Exhibit 99.01
Securities registered pursuant to Section 12(g) of the Act: none
Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. o Yes X No
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. o Yes X No
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. X Yes o No
Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files). X Yes o No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of Registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. >o
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer, and smaller reporting company in Rule 12b-2 of the Exchange Act.
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes X No>
The aggregate market value of Citigroup Inc. common stock held by non-affiliates of Citigroup Inc. on June 30, 2011 was approximately $121.3 billion.
Number of shares of common stock outstanding on January 31, 2012: 2,928,662,136
Documents Incorporated by Reference: Portions of the Registrants Proxy Statement for the annual meeting of stockholders scheduled to be held on April 17, 2012, are incorporated by reference in this Form 10-K in response to Items 10, 11, 12, 13 and 14 of Part III.
10-K CROSS-REFERENCE INDEX
This Annual Report on Form 10-K incorporates the requirements of the accounting profession and the Securities and Exchange Commission.
CITIGROUPS 2011 ANNUAL REPORT ON FORM 10-K
Citigroups history dates back
to the founding of Citibank in 1812. Citigroups original corporate predecessor
was incorporated in 1988 under the laws of the State of Delaware. Following a
series of transactions over a number of years, Citigroup Inc. was formed in 1998
upon the merger of Citicorp and Travelers Group
Please see Risk Factors below for a discussion of
Certain reclassifications have been made to the prior periods financial statements to conform to the current periods presentation.
As described above, Citigroup is managed pursuant to the following segments:
* Effective in the first quarter of 2012, Citi will transfer the substantial majority of the retail partner cards business (approximately $45 billion of assets, including approximately $41 billion of loans) from Citi Holdings Local Consumer Lending to CiticorpNorth America RCB.
The following are the four regions in which Citigroup operates. The regional results are fully reflected in the segment results above.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Market and Economic
2011 Summary Results
Capital and Loan Loss
Banking revenues of $21.4
billion decreased 7% year-over-year. Excluding CVA/DVA (for details on
Banking CVA/DVA amounts, see
GroupSecurities and Banking
below), revenues were $19.7 billion, down 16% from the prior year, due primarily
to the continued challenging macroeconomic environment, which resulted in lower
revenues across fixed income and equity markets as well as investment
Citi Holdings assets declined $90 billion, or 25%, to $269 billion at
the end of 2011, although Citi believes the pace of asset wind-down in Citi
Holdings will decrease going forward. The decline during 2011 reflected nearly
$49 billion in asset sales and business dispositions, $35 billion in net run-off
and amortization and approximately $6 billion in net cost of credit and net
asset marks. As of December 31, 2011, Local Consumer Lending
continued to represent the largest segment within Citi Holdings, with $201
billion of assets. Over half of Local Consumer Lending
assets, or approximately $109 billion, were related to North America real estate lending. As of December 31, 2011,
there were approximately $10 billion of loan loss reserves allocated to
North America real estate lending in Citi Holdings,
representing roughly 31 months of coincident net credit loss coverage.
RESULTS OF OPERATIONS
Statement continues on the next page, including notes to the table.
SEGMENT AND BUSINESSINCOME (LOSS) AND REVENUES
The following tables show the
income (loss) and revenues for Citigroup on a segment and business
NM Not meaningful
NM Not meaningful
Citicorp is Citigroups global bank for consumers and businesses
and represents Citis core franchises. Citicorp is focused on providing best-in-class products and services to customers
and leveraging Citigroups unparalleled global network. Citicorp is physically present in approximately 100 countries, many
for over 100 years, and offers services in over 160 countries and jurisdictions. Citi believes this global network provides a
strong foundation for servicing the broad financial services needs of large multinational clients and for meeting the needs of
retail, private banking, commercial, public sector and institutional clients around the world. Citigroups global footprint
provides coverage of the worlds emerging economies, which Citi continues to believe represent a strong area of growth. At
December 31, 2011, Citicorp had approximately $1.3 trillion of assets and $797 billion of deposits, representing approximately
70% of Citis total assets and approximately 92% of its deposits.
NM Not meaningful
NM Not meaningful
NORTH AMERICA REGIONAL CONSUMER
2011 vs. 2010
Revenues decreased 8% mainly due to lower net interest margin and loan balances in the Citi-branded cards business as well as lower mortgage-related revenues, primarily relating to lower refinancing activity and lower margins as compared to the prior year.
Net interest revenue decreased 8%, driven primarily by lower cards net interest margin which
was negatively impacted by the look-back provision of The Credit Card
Accountability Responsibility and Disclosure Act (CARD Act). As previously
disclosed, the look-back provision of the CARD Act generally requires a review
to be done once every six months for card accounts where the annual percentage
rate (APR) has been increased since January 1, 2009 to assess whether changes in
credit risk, market conditions or other factors merit a future decline in the
APR. In addition, net interest margin for cards was negatively impacted by
higher promotional balances and lower total average loans. As a result, cards
net interest revenue as a percentage of average loans decreased to 9.48% from
10.28% in the prior year. Citi expects margin growth to remain under pressure
into 2012 given the continued investment spending in the business during 2012,
which largely began in the second half of 2011.
2010 vs. 2009
EMEA REGIONAL CONSUMER