Citigroup (C)

·                  Consumer revenues and net income increased primarily due to the absence of a $755 million pre-tax charge in consumer finance, recorded in the prior-year period.  In the current period, consumer finance results include a $188 million pre-tax charge to increase reserves for estimated losses due to customer settlements, as well as a decline in receivables balances and an increase in the net credit loss ratio.  Financial results reflected recent adverse changes in the operating environment and the impact of consumer lending laws passed in the fourth quarter 2006.  Results also include a $313 million pre-tax gain on the sale of an ownership interest in Nikko Cordial’s Simplex Investment Advisors.

·                  Markets & banking revenue growth was driven by increased ownership in Nikko Cordial and strong double-digit growth in transaction services.  The net income decline was primarily driven by lower results in fixed income and equity markets.

·                  Wealth management results reflected the impact of increased ownership of Nikko Cordial.

·                 

—           Consumer income increased primarily due to lower credit costs in consumer finance.

—           Corporate income declined as reduced customer transaction volumes and lower volatility led to weaker sales and trading results.

—           Wealth Management results reflect the continued wind-down of the private bank operations.

6