Citigroup (C)

GLOBAL CONSUMER

Citigroup’s Global Consumer Group provides a wide array of banking, lending, insurance and investment services through a network of 8,527 branches, approximately 20,000 ATMs and 530 Automated Lending Machines (ALMs), the Internet, telephone and mail, and the Primerica Financial Services salesforce. Global Consumer serves more than 200 million customer accounts, providing products and services to meet the financial needs of both individuals and small businesses.

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Table of Contents

Global Consumer

·                  An increase in credit costs of approximately $2.6 billion pre-tax versus the prior-year quarter due to continued deterioration in the credit environment, organic portfolio growth, and acquisitions.  Approximately one-fourth of the increase in credit costs was due to higher net credit losses and approximately three-fourths was due to higher charges to increase loan loss reserves.

“Despite unusually poor results in certain businesses this quarter, Citi continues to execute its growth strategy and generate momentum across many of its franchises.   Citi’s international franchise continues to expand rapidly.  Globally, revenues in equity underwriting, advisory, and transaction services are growing at a healthy double-digit pace, and customer volumes in the consumer business continue to show good growth.  In Wealth Management, Citi’s ability to serve client needs through the market dislocations is generating solid results.  The structural expense initiatives announced in early April 2007 are on track and delivering the cost savings projected,” said Prince.

Citi’s estimated third quarter results include approximately $470 million of after-tax gain on the sale of Redecard shares.

RECORDED MESSAGE:  This announcement and related third quarter information are discussed in a recorded message from Chuck Prince, Chairman and CEO, and Gary Crittenden, Chief Financial Officer, available on Citi’s investor relations website, http://www.citigroup.com/citigroup/fin.

NEW EARNINGS RELEASE DATE:  The date for Citi’s third quarter 2007 earnings release has been moved from October 19, 2007 to October 15, 2007, at 6:30 am New York time.   A full discussion of financial results will be provided via webcast at 8:30 am New York time on October 15, 2007.  Please refer to the investor relations website, http://www.citigroup.com/citigroup/fin, for full details.

Citi is providing this preliminary information about its third quarter results prior to the scheduled earnings announcement date in light of the market events of recent months.  Investors should not expect Citi to provide information about the results of future quarters in advance of scheduled quarterly earnings announcement dates.  In addition, investors should not expect Citi to update the information provided in this release in advance of the scheduled announcement date for its third quarter 2007 earnings on October 15, 2007.

Certain statements in this document are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act.  These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances.  Actual results may differ materially from those included in these statements due to a variety of factors.  More information about these factors is contained in Citi’s filings with the Securities and Exchange Commission.

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Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management.  Citi’s brand names include Citibank, CitiFinancial, Primerica, Citi Smith Barney and Banamex.  Additional information may be found at www.citigroup.com or www.citi.com.

Contacts

GLOBAL CONSUMER

		*Excludes Other Consumer loss of $92 million.		*Excludes Other Consumer loss of $92 million.

        Citigroup's Global Consumer Group provides a wide array of banking, lending, insurance and investment services through a network of 7,670 branches, approximately 18,000 ATMs, approximately 800 Automated Lending Machines (ALMs), the Internet, telephone and mail, and the Primerica Financial Services salesforce. Global Consumer serves more than 200 million customer accounts, providing products and services to meet the financial needs of both individuals and small businesses.

(1)

See footnote 4 to the table on page 4.

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GLOBAL CONSUMER

        Citigroup's Global Consumer Group provides a wide array of banking, lending, insurance and investment services through a network of 7,440 branches, 12,167 ATMs, 731 Automated Lending Machines (ALMs), the Internet, telephone and mail, and the Primerica Financial Services salesforce. Global Consumer serves more than 200 million customer accounts, providing products and services to meet the financial needs of both individuals and small businesses.

(1)

See footnote 3 to the table on page 4.

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GLOBAL CONSUMER

Global Consumer Net Income In billions of dollars		Global Consumer 2005 Net Income by Product*		Global Consumer 2005 Net Income by Region*
		*Excludes Other Consumer loss of $374 million.		*Excludes Other Consumer loss of $374 million.

        Citigroup's Global Consumer Group provides a wide array of banking, lending, insurance and investment services through a network of 7,237 branches, 6,920 ATMs, 682 Automated Lending Machines (ALMs), the Internet, telephone and mail, and the Primerica Financial Services salesforce. Global Consumer serves more than 200 million customer accounts, providing products and services to meet the financial needs of both individuals and small businesses.

(1)

See footnote 5 to the table on page 3.

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GLOBAL CONSUMER

        Global Consumer delivers a wide array of banking, lending, insurance and investment services through a network of local branches, offices, and electronic delivery systems, including ATMs, the Internet, and Automated Lending Machines (ALMs), and the Primerica Financial Services (Primerica) sales force. The Global Consumer businesses serve individual consumers as well as small businesses. Global Consumer includes Cards, Consumer Finance, Retail Banking and Other Consumer.

        Cards provides MasterCard, VISA, Diner's Club and private label credit and charge cards. North America Cards includes the operations of Citi Cards, the Company's primary brand in North America, and Mexico Cards. International Cards provides credit and charge cards to customers in Europe, the Middle East and Africa (EMEA), Japan, Asia and Latin America.

        Consumer Finance provides community-based lending services through branch networks, regional sales offices and marketing initiatives with other Citigroup businesses. The business of CitiFinancial is included in North America Consumer Finance. As of September 30, 2005, North America Consumer Finance maintained 2,705 offices, including 2,450 in the U.S., Canada, and Puerto Rico, and 255 offices in Mexico, while International Consumer Finance maintained 1,759 sales points, including 392 branches and 654 ALMs in Japan. Consumer Finance offers real-estate-secured loans, unsecured and partially secured personal loans, auto loans and loans to finance consumer-goods purchases. In addition, CitiFinancial, through certain subsidiaries and third parties, makes available various credit-related and other insurance products to its U.S. customers.

        Retail Banking provides banking, lending, investment and insurance services to customers through retail branches, electronic delivery systems, and the Primerica sales force. In North America, Retail Banking includes the operations of Retail Distribution, Commercial Business, Prime Home Finance, Student Loans, Primerica, and Mexico Retail Banking. Retail Distribution delivers banking, lending, investment and insurance services through 884 branches in the U.S. and Puerto Rico and through Citibank Online, an Internet bank. The Commercial Business provides equipment leasing and financing, and banking services to small- and middle-market businesses. The Prime Home Finance business originates and services mortgages for customers across the U.S. The Student Loan business is comprised of the origination and servicing of student loans in the U.S. The business operations of Primerica involve the sale, mainly in North America, of life insurance, Smith Barney mutual funds, CitiFinancial debt consolidation loans, Prime Home Finance, and variable annuities products. The Primerica sales force is composed of more than 100,000 independent representatives. Mexico Retail Banking consists of the branch banking operations of Banamex, which maintains 1,335 branches, the Banamex insurance operations formerly reported in the Life Insurance and Annuities business, and the Banamex asset management and retirement services operations formerly reported in Asset Management (currently reflected as a discontinued operation). International Retail Banking consists of 1,201 branches and provides full-service banking, investment and insurance services in EMEA, Japan, Asia, and Latin America.

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        Latin America also includes the Latin America Retirement Services operations formerly reported in Asset Management. In addition to North America, Commercial Business consists of the suite of products and services offered to small- and middle-market businesses in the international regions.

        During the 2005 third quarter, Citigroup announced a senior management realignment in its Global Consumer Group. This realignment will be organized along customer lines that will recognize the different opportunities in the North American and International retail consumer marketplaces. Ajay Banga, currently President of Retail Banking North America, and Steven J. Freiberg, currently Chairman and Chief Executive Officer of Citi Cards, will become co-heads of the Global Consumer Group, with Mr. Banga leading the International operations and Mr. Freiberg leading the North American business (U.S. and Canada). This reorganization was done with the view that it will enable the Company to better focus on customers' needs in an integrated fashion across all product lines and more effectively respond to the specific opportunities in markets at different stages of development. The presentation of the Company's 2005 fourth quarter disclosures will reflect this organizational and product structure.

GLOBAL CONSUMER

(1)

See Footnote (5) to the table on page 6 and discussion of Risk Capital on page 42.

        Global Consumer reported net income of $2.723 billion and $8.463 billion in the 2005 third quarter and nine months, respectively, down $396 million, or 13%, from the 2004 third quarter and down $379 million, or 4%, from the 2004 nine-month period. The decline in the 2005 third quarter was driven by the standardization of the loan write-off policy within certain countries of the EMEA Retail Banking and Consumer Finance businesses, which resulted in an increase to the provision for credit losses of $490 million pretax ($332 million after-tax), the impact of Hurricane Katrina, which resulted in lower revenues of $115 million pretax, including the impact of waived interest and fees, and a net increase to the provision for credit losses of $260 million pretax (total Hurricane Katrina after-tax impact of $234 million), an increase in credit costs in U.S. Cards due to the recent bankruptcy legislation of approximately $200 million pretax, and the absence of prior-year unallocated credit reserve releases. Partially offsetting these decreases were a legal settlement related to the purchase of Copelco in the Commercial Business, tax benefits from the Homeland Investment Act, a refund of value added taxes in Mexico, lower credit losses in the U.S. from general improvement in the credit environment, and the impact from business volume growth. The 2005 nine-month decrease was also impacted by the absence of the prior-year $378 million gain on the sale of Samba, repositioning costs taken in the 2005 first quarter, a $111 million after-tax gain on the sale of the CitiCapital Transportation Finance business, a $72 million after-tax gain relating to the resolution of the Glendale litigation, and a 2005 first quarter $109 million after-tax loss on the sale of a Manufactured Housing Loan portfolio in Other Consumer.

        Cards net income decreased $85 million, or 7%, in the 2005 third quarter, but increased $76 million, or 2%, in the 2005 nine-month period. The 2005 third quarter decrease was driven by the increased bankruptcy losses, the absence of prior-year unallocated credit reserve releases, the impact in the U.S. of spread compression, and the impact of Hurricane Katrina, partially offset by lower contractual credit losses due to an improved credit environment, the impact of higher securitization gains in North America, and volume growth in International Cards. The increase in the nine-month period primarily resulted from lower credit losses due to the improved credit environment. Consumer Finance net income decreased $148 million, or 23%, in the 2005 third quarter and $34 million, or 2%, in the nine-month period, primarily due the impact of a credit reserve build related to the impact of Hurricane Katrina of $180 million pretax, the absence of prior-year unallocated credit reserve releases, and the impact of spread compression in North America, partially offset by lower net credit losses in North America related to the improved credit environment, the impact of higher volumes, and lower net credit losses and expenses in Japan. The nine-month period also included repositioning costs taken in the 2005 first quarter in EMEA and Latin America. Retail Banking net income decreased $160 million, or 13%, in the 2005 third quarter and increased $30 million, or 1%, in the 2005 nine-month period. The decline in the 2005 third quarter reflected the standardization of the loan write-off policy in EMEA, the impact of Hurricane Katrina on U.S. businesses, and the absence of prior-year unallocated credit reserve releases, partially offset by the Copelco legal settlement in the Commercial Business, a refund of value added taxes in Mexico, tax benefits related to the Homeland Investment Act, as well as business growth in Mexico, Asia, EMEA, and Latin America. The nine-month comparison was also impacted by a 2005 second quarter increase of $127 million ($81 million after-tax) in the Germany credit reserve to reflect increased experience with the effects of bankruptcy law liberalization, and in the 2005 first quarter, a $111 million after-tax gain on the sale of the CitiCapital Transportation Finance business, a $72 million after-tax gain relating to the resolution of the Glendale litigation, improved results in Prime Home Finance, and repositioning costs.

        On March 31, 2005, Citigroup acquired First American Bank in Texas (FAB), which included 106 branches, $4.2 billion in assets and approximately 120,000 customers in the state of Texas. On July 1, 2004, Citigroup acquired Principal Residential Mortgage, Inc. (PRMI), a servicing portfolio of $115 billion. In the 2004 second quarter, Citigroup completed the acquisition of KorAm, which added $10.0 billion in deposits and $12.6 billion in loans, with $11.5 billion in Retail Banking and $1.1 billion in Cards at June 30, 2004. In January 2004, Citigroup completed the acquisition of Washington Mutual Finance (WMF), which added $3.8 billion in average loans and 427 loan offices. The results from these acquisitions are included from the dates of acquisition.

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        Global Consumer has divested itself of several non-strategic businesses and portfolios. These divestitures include a $1.4 billion Manufactured Housing Loan portfolio and the CitiCapital Transportation Finance business, consisting of $4.3 billion of assets, in the 2005 first quarter; Global Consumer's share of Citigroup's 20% stake in Samba in the 2004 second quarter; and a $900 million vendor finance leasing business in Europe in the 2004 fourth quarter.