Citigroup (C)

Global Wealth Management Net Income—Regional View

NM

Not meaningful

        Global Wealth Management net income was $306 million in the 2005 third quarter and $947 million in the first nine months of 2005. In Japan, the wind-down of the Private Bank business resulted in losses of $29 million and $82 million in the 2005 third quarter and nine months, respectively, compared to income of $3 million and $48 million in the prior-year quarter and first nine months of 2004. Lower transactional revenue was the primary driver of results in Latin America, where income was down $8 million and $15 million from the prior-year quarter and nine months; and in Mexico, where net income declined $1 million and $6 million, respectively. In Asia, net income decreased $7 million and $10 million, respectively, from the 2004 third quarter and nine-month comparisons, primarily due to investment spending on front office sales and support. In EMEA, volume-driven growth in recurring fee-based and net interest revenues, as well as higher transactional revenue, led to the $4 million net income increase in the 2005 third quarter, while investment spending on front office sales and support was the primary driver of $7 million net income decrease in the nine month comparison. Income in North America (excluding Mexico) of $288 million in the 2005 third quarter was up $16 million, or 6%, from the 2004 quarter, reflecting increased Smith Barney net income of $29 million driven by increased revenue, partially offset by decreased Private Bank net income of $13 million, primarily due to investment spending on front office sales and support, as well as increased credit costs. North America (excluding Mexico) net income of $876 million in the nine-month period increased $7 million, or 1%, from the 2004 nine-month period, reflecting increased Private Bank net income of $5 million, reflecting volume-driven growth in recurring fee-based and net interest revenues, partially offset by investment spending on front office sales and support, while Smith Barney net income increased $2 million.

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Global Wealth Management Net Income—Regional View

NM

Not meaningful

        Global Wealth Management net income was $322 million and $641 million in the 2005 second quarter and six months. In Japan, the wind-down of the Private Bank business resulted in losses of $45 million and $53 million in the 2005 second quarter and six months, respectively, compared to income of $19 million and $45 million in the prior-year quarter and first six months of 2004, respectively. Lower transactional revenue was the primary driver of results in Latin America, where income was down $4 million and $7 million from the prior-year quarter and six months; in Mexico, which declined $2 million and $5 million, respectively; and in EMEA, which was down $1 million and $11 million, respectively. In Asia, income was down $3 million, or 9%, from the prior-year quarter and $3 million, or 4%, in the six-month period, as growth in recurring and transactional revenues in the 2005 second quarter was offset by higher expense levels resulting from the impact of investment spending on front office sales and support. Partially offsetting these decreases, income in North America (excluding Mexico) of $315 million in the 2005 second quarter, was up $33 million, or 12%, from the 2004 quarter as growth in fee-based and net interest revenue in Smith Barney and Private Bank, driven by higher customer volumes, outpaced the decline in transactional revenues. North America (excluding Mexico) income for the first six months of 2005 was $588 million, down $9 million, or 2%, from the 2004 period as lower transactional revenue was partly offset by the benefit of higher customer volumes in both business and improved credit costs in Private Bank.

31

Global Wealth Management Net Income—Regional View

NM

Not meaningful

        Global Wealth Management net income of $317 million in the first quarter of 2005 decreased $93 million or 23% from the 2004 first quarter as a result of a $43 million decline in North America (excluding Mexico), a $34 million decline in Japan, a $10 million decline in EMEA, and lower earnings of $3 million in both Mexico and Latin America. Asia results were unchanged from the prior year. Income in North America (excluding Mexico) was $271 million, down $43 million or 14% from the 2004 first quarter as a $56 million decline in Smith Barney was partially offset by growth in Private Bank. Income in Private Bank grew $13 million or 22%, primarily reflecting improved credit and increased banking and lending volumes that were partially offset by net interest margin compression. In Japan, the wind-down of Private Bank business resulted in a loss of $8 million in the 2005 first quarter compared to income of $26 million in the prior-year quarter. EMEA results, which declined $10 million from the prior-year quarter, included lower transactional-based revenues and repositioning expenses in the current period. Compared to the 2004 first quarter, income was down $3 million or 19% in Mexico, and down $3 million or 30% in Latin America, while in Asia income was unchanged, all reflecting lower transactional-based revenues.

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Global Wealth Management Net Income—Regional View

        Global Wealth Management net income decreased $144 million in 2004 from the prior year, primarily due to the decline in Japan, partially offset by growth in North America, EMEA, Mexico and Asia. The Japan net loss of $205 million in 2004 represented a $288 million decrease in income from 2003, due to the Private Bank closure. North America net income of $1.169 billion increased $96 million from 2003, reflecting higher Smith Barney results of $89 million, primarily driven by strong asset-based revenue growth, partially offset by higher operating expenses and higher Private Bank results of $7 million, which were primarily driven by strong banking and lending volumes, as well as a lower effective tax rate, and partially offset by higher employee-related costs and net interest margin compression. EMEA net income of $15 million in 2004 increased $31 million from 2003, primarily driven by growth in fee income as well as transactional revenues and improved credit costs. Mexico net income of $52 million in 2004 increased $11 million from 2003, resulting from higher transactional revenue and higher fee income. Asia net income of $125 million increased $7 million from 2003, primarily reflecting higher fee-based and net interest revenue, partially offset by higher employee-related costs driven by investments in bankers and product specialists.

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