Citigroup (C)

Global Consumer Net Income—Regional View

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        The decline in Global Consumer net income in the 2005 second quarter reflected a decline in EMEA of $479 million, or 80%, where year-over-year comparisons were affected by the prior-year gain on the sale of Samba, the impact of the Germany credit reserve build, higher investment expenses due to branch expansion, and higher credit losses, partially offset by growth in all other regions. The 2005 six-month increase reflected growth in all regions, partially offset by the declines in EMEA of $561 million, or 70%, which included 2005 first quarter repositioning expenses of $66 million after-tax ($104 million pretax). Net income in Mexico grew $133 million, or 57%, and $182 million, or 39%, in the 2005 second quarter and six months, respectively, driven by a $50 million favorable impact related to a restructuring of Mexican government notes, a reserve release related to an investment in Avantel worth $30 million, higher deposit and lending revenues in Retail Banking, and improved customer volumes in Cards. Growth in Asia of $61 million, or 22%, and $125 million, or 24%, in the 2005 second quarter and six months, respectively, was mainly due to increased loans and sales in Cards, higher deposit and branch lending revenues in Retail Banking, and the benefit of strengthening currencies. Income in Japan increased by $41 million, or 28%, and $74 million, or 26%, in the 2005 second quarter and six months, respectively, primarily driven by Consumer Finance, which experienced lower credit costs from fewer bankruptcies, and lower expenses resulting from the 2004 fourth quarter branch closings and related headcount reductions. The increase in Latin America of $26 million, or 48%, and $27 million, or 25%, in the 2005 second quarter and six months, respectively, was mainly due to increased loans and sales in Cards and an Argentina Compensation bond recovery of $24 million pretax in Retail Banking, partially offset in the six-month period by 2005 first quarter repositioning costs of $8 million after-tax ($12 million pretax). North America (excluding Mexico) net income grew $13 million, or 1%, and $170 million, or 5%, in the 2005 second quarter and six months, respectively, primarily reflecting higher earnings in Prime Home Finance and lower credit losses in Cards, Consumer Finance and Retail Banking from an improved credit environment. The six-month period was additionally impacted by the sale of the CitiCapital Transportation Finance business and the resolution of the Glendale litigation in Retail Banking, partially offset by the loss on the sale of a Manufactured Housing Loan portfolio in Other Consumer.

Global Consumer Net Income—Regional View

        The increase in Global Consumer net income in the 2005 first quarter reflected growth in all regions except EMEA, where year-over-year comparisons were affected by repositioning costs, higher investment expenses due to branch expansion and higher credit losses. North America (excluding Mexico) net income grew $157 million or 9%, primarily reflecting the sale of the CitiCapital Transportation Finance business and the resolution of the Glendale litigation in Retail Banking and an improved credit environment, partially offset by the loss on the sale of a Manufactured Housing Loan portfolio in Other Consumer. Net income in Mexico grew $57 million or 28%, driven by improved customer volumes in Cards and Retail Banking. Net income in EMEA declined $84 million or 41%, primarily due to the impact of repositioning costs of $66 million after-tax ($104 million pretax), as well as business deterioration in the UK's Consumer Finance and Cards businesses, partially offset by the benefit of foreign currency translation. Income in Japan

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increased by $33 million or 23% reflecting lower credit costs, primarily driven by lower bankruptcies in Consumer Finance. Growth in Asia of $64 million or 26% was mainly due to higher deposit and branch lending revenues and higher investment product sales in Retail Banking, increased loans and sales in Cards, the addition of KorAm, and the benefit of strengthening currencies. The increase in Latin America of $4 million or 9% was mainly due to increased loans and sales in Cards, partially offset by a decline in Retail Banking, primarily due to the impact of repositioning costs of $8 million after-tax ($12 million pretax).

Global Consumer Net Income—Regional View

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        The increase in Global Consumer net income in 2004 reflected growth in all regions. North America (excluding Mexico) net income grew $1.121 billion or 17%, primarily reflecting the impact of acquisitions and improved credit, including higher credit reserve releases. Net income in Mexico grew $203 million or 33%, driven by improved customer volumes in Cards and Retail Banking. Net income in EMEA increased $499 million or 73%, primarily reflecting the $378 million gain on the sale of Samba in Other Consumer and the benefit of foreign currency translation, partially offset by higher credit reserve builds. Income in Japan increased by $33 million or 6% reflecting a lower provision for credit losses, primarily driven by lower bankruptcies in Consumer Finance, partially offset by the absence of a $94 million prior-year tax reserve release. Growth in Asia of $376 million or 46% was mainly due to higher investment product sales in Retail Banking, growth in Cards, the impact of credit reserve releases and the addition of KorAm. The increase in Latin America of $88 million or 48% was mainly due to improvements in all products, with the increase in Retail Banking primarily driven by Argentina, including the absence of prior-year repositioning costs.