Citigroup (C)

International Consumer

Revenues increased 33%, driven by organic growth, the impact of recent acquisitions, a $663 million pre-tax gain on Redecard shares, and a $97 million pre-tax gain on Visa shares.  Excluding the gains on Redecard and Visa shares, as well as a gain on sale of MasterCard shares in the prior-year period, revenues increased 22%.   Revenue growth was offset partially by a decline in Japan consumer finance.  Average deposits and loans were up 23% and 30%, respectively.  Expenses increased 18%, primarily due to acquisitions, higher business volumes, and a $106 million repositioning charge, partially offset by a $257 million benefit related to a legal vehicle restructuring in Mexico.  Credit costs increased substantially, primarily driven by Mexico cards and India consumer finance, as well as by acquisitions and portfolio growth.  Net income increased 33%, primarily due to increased business volumes and the gain on Redecard and Visa shares.

·                  International Cards

·                  Revenues grew 76%, primarily driven by acquisitions, higher average loans and purchase sales, up 53% and 41%, respectively, improved net interest margins, gains on Redecard and Visa shares.  Excluding the gains on Redecard and Visa shares in the current quarter and the gain on sale of MasterCard shares in the prior-year period, revenues increased 37%.

·                  Expenses increased due to higher business volumes and acquisitions.

·                  Credit costs increased by $541 million, primarily driven by Mexico and acquisitions.

·                  Net income increased 81% as higher revenues more than offset significantly higher credit costs.

·                  International Consumer Finance

·                  In Japan, revenues declined by 29% driven by lower interest revenue and higher refund claims.  The net loss of $69 million reflected the difficult operating environment and the ongoing impact of consumer lending laws passed in the fourth quarter 2006.

·                  Outside of Japan, revenues increased 10%, driven by average loan growth of 14%.  The net loss of $99 million mainly was due to an increase in credit costs of 92%, primarily driven by India, and a repositioning charge.

5

International Consumer

Revenues increased 45%, driven by organic volume growth and the impact of recent acquisitions.  Results also include a $507 million pre-tax gain on Visa, Inc. shares, and a $313 million pre-tax gain on the sale of an ownership interest in Nikko Cordial’s Simplex Investment Advisors.  Average deposits and loans were up 21% and 30%, respectively, and investment sales increased 24%.  Expenses increased 18%, primarily due to acquisitions and higher business volumes.  Credit costs increased 34%, primarily due to the impact of recent acquisitions, portfolio growth, and an increase in the net credit loss ratio in consumer finance.  Net income more than doubled driven by higher business volumes and the Visa and Simplex gains.

·                  International Cards

·                  Revenues grew 59%, primarily driven by higher purchase sales and average loans, up 37% and 53%, respectively, and a $448 million pre-tax gain on Visa, Inc shares.  Excluding the gain, revenues increased 32%.  Loan balances grew at a double-digit pace in all regions.  Results include the impact of recent acquisitions.

·                  Expenses increased 31% driven by increased business volumes and the impact of recent acquisitions.

·                  Credit costs increased 9% as a decline in net credit losses was offset by an increase in loan loss reserves.  Net credit losses declined as higher losses in Mexico and portfolio growth were offset by the impact of recent acquisitions.  A charge of $149 million pre-tax to increase loan loss reserves primarily reflected portfolio growth.

·                  Net income more than doubled, driven by strong volume growth and the gain on Visa, Inc. shares.  Excluding the Visa gain, net income increased 68%.

5

International Consumer

Revenues increased 35%, driven by organic growth, the impact of recent acquisitions, and a gain on the sale of Redecard shares, partially offset by a significant decline in Japan consumer finance.  Excluding the gain, revenues were up 21%.  Average deposits and loans were up 18% and 29%, respectively, and investment sales more than doubled. Expenses increased 31% primarily due to the integration of acquisitions and higher business volumes.  Credit costs increased substantially, primarily due to the impact of recent acquisitions, portfolio growth, and a change in estimate of loan losses.  Net income declined primarily due to increased losses in Japan consumer finance, higher credit costs, and lower APB 23 tax benefits.

·                  International Cards

·                  Revenues grew 88%, primarily driven by higher purchase sales and average loans, up 37% and 52%, respectively, improved net interest margins, and a $729 million pre-tax gain on the sale of Redecard shares.  Excluding the gain, revenues increased 40%.  Loan balances grew at a double-digit pace in Mexico, EMEA, Asia, and Latin America.  Results include the integration of recent acquisitions.

·                  Credit costs increased substantially, driven by higher net credit losses and a $334 million pre-tax charge to increase loan loss reserves.  Higher credit costs were primarily due to acquisitions and organic portfolio growth, an increase in past due accounts in Mexico cards, and a change in estimate of loan losses.  The net credit loss ratio increased 61 basis points to 5.62%.

·                  Net income increased as higher revenues and the gain on the sale of Redecard shares offset significantly higher credit costs.  Excluding the gain on the sale of Redecard shares, net income declined 38%.

·                  International Consumer Finance

·                  In Japan, net income declined significantly due to charges to increase reserves for customer refunds and credit losses, higher expenses due to write-downs of $152 million pre-tax on customer intangibles and fixed assets, and a decline in revenues primarily due to lower receivable balances.  Financial results reflect recent adverse changes in the operating environment and the impact of consumer lending laws passed in the fourth quarter 2006.

·                  Outside of Japan, revenues increased 22%, driven by average loan growth of 20% and increased net interest margins.  Net income declined as revenue growth was offset by an increase in credit costs due to portfolio growth and seasoning, and a $90 million pre-tax charge to increase loan loss reserves primarily due to a change in estimate of loan losses.  The net credit loss ratio increased 48 basis points to 3.58%.

4

·                  International Retail Banking

·                  Revenues increased 26%, driven by increased deposits and loans, up 18% and 26%, respectively, and higher investment sales, up 26%.  Loan balances grew at a double-digit pace in EMEA, Asia, Latin America, and Mexico.  Results include the integration of recent acquisitions.

·                  Expenses grew 26%, reflecting increased business volumes and acquisitions.  During the quarter, 41 new branches were opened.

·                  Credit costs increased due to the absence of portfolio sales and loan loss reserve releases recorded in the prior-year period, and a $131 million pre-tax charge to increase loan loss reserves in the current period.  The charge to increase loan loss reserves primarily reflects a change in estimate of loan losses.

·                  Net income declined 21%, reflecting higher credit costs, and lower APB 23 tax benefits in Mexico.

INTERNATIONAL CONSUMER

International Consumer Net Income In billions of dollars		International Consumer 2005 Net Income by Product		International Consumer 2005 Net Income by Region

        International Consumer is composed of three businesses: Cards, Consumer Finance and Retail Banking.

(1)

See footnote 5 to the table on page 3.

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