Citigroup (C)

·                  Revenues were $1.8 billion, down 23% from the prior year period due to the impact of foreign exchange, lower credit card receivables and spread compression, partially offset by higher volumes in retail banking.

·                  Income was down 79% to $70 million, as compared to the prior year period, primarily due to lower card revenues and increasing credit costs.

·                  Credit costs were $766 million, up 8% from the prior year period, as deteriorating credit conditions were partially offset by the impact of foreign exchange.  Card net credit loss rates increased from 11.4% in the second quarter of 2008 to 16.2%.  Credit deterioration was particularly apparent in the Mexico card portfolio.

·                  Expenses were $1.0 billion, down 16% from the prior year period, driven by the impact of foreign exchange and reengineering actions, partially offset by restructuring charges.

·                  Average deposits were $36.0 billion, down 14% from the prior year period, due to the impact of foreign exchange.

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LATIN AMERICA

1Q09 vs. 1Q08

        Revenues increased 1% over the prior year, with strong trading results and one-time gains mostly offset by the impact of FX translation across the region and unfavorable market conditions during the quarter. Global Cards revenue grew 10%, driven by the $1.1 billion gain on the sale of Redecard shares in the first quarter of 2009, offset partially by the prior-year $663 million gain on sale of Redecard shares. Consumer Banking revenue decreased 22% driven by a 7% decline in average loans, a 19% decline in average deposits, and lower investment sales and assets under management. ICG revenue increased 12%, mostly due to S&B revenues being 17% higher, driven by stronger fixed income trading results, offset partially by declines in investment banking and lending. Transaction Services revenues were up 1% with stronger trade services performance due to higher spreads mostly offset by weakness in the securities and funds services business. GWM revenue fell 40% driven by decreases in the investments, capital markets, and banking businesses reflecting the impact of market conditions.

        Operating expenses decreased 10% from the prior-year quarter mainly due to re-engineering efforts which resulted in significant savings in addition to the benefit from FX translation, partially offset by a $282 million benefit related to a legal vehicle restructuring in Mexico in the prior year.

        Provisions for loan losses and for benefits and claims increased 14% mainly due to increases in ICG and Consumer Banking.

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Table of Contents

—           Revenues declined 22%, and average loans and deposits were down 7% and 19%, respectively, due to the impact of foreign exchange.

—           Credit costs increased 15%, due to a $20 million incremental net loan loss reserve build.  Net credit loses were even with the prior-year period.  The net credit loss ratio increased 32 basis points to 4.10%.  The 70% decline in net income to $81 million was mainly driven by lower revenues and the absence of a $221 million expense benefit related to a legal vehicle restructuring in Mexico, recorded in the prior-year period.  Excluding the expense benefit from the prior year period, net income declined 37%.

·                 

·             Revenues decreased 27%, reflecting the impact of foreign exchange, the absence of a gain on Visa shares recorded in the prior-year period, and the divestiture of the Chile Consumer Banking operations, which closed in January 2008.  Average loans and deposits were down 3% and 13%, respectively, due to the impact of foreign exchange.

·             Credit costs nearly doubled, due to an increase in net credit losses, up 32% or $35 million, and a $94 million incremental net loan loss reserve build.  Higher credit costs reflected a continued deterioration in Mexico, Brazil and Colombia.  The net credit loss ratio increased 108 basis points to 4.04%.  Lower revenues and a significant rise in credit costs led to a net loss of $76 million.

·           

·                  Consumer revenue and net income growth was driven by increased average deposits, up 74%, a doubling of average loans, and higher investment AUMs, up 24%.  Results also include a $42 million pre-tax gain on Visa Inc. shares and the impact of recent acquisitions.  Over the last 12 months, 230 new retail bank and consumer finance branches were opened or acquired.

·                  Markets & banking revenues grew 82% and net income more than doubled driven by strong growth in fixed income revenues and record results in equities.  Results also reflected record revenues and net income in transaction services, driven by higher customer volumes and increased liability balances.

A reconciliation of non-GAAP financial information contained in this press release is set forth on page 14.

Vikram Pandit, Chief Executive Officer and Gary Crittenden, Chief Financial Officer, will host a conference call today at 8:30 AM (EST).  A live webcast of the presentation, as well as financial results and presentation materials, will be available at http://www.citigroup.com/citigroup/fin.  A replay of the webcast will be available at http://www.citigroup.com/citigroup/fin/pres.htm.

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 major brand names include Citibank, CitiFinancial, Primerica, Smith Barney, and Banamex.  Additional information may be found at www.citigroup.com or www.citi.com.

Additional financial, statistical, and business-related information, as well as business and segment trends, is included in a Financial Supplement.  Both the earnings release and the Financial Supplement are available on Citi’s website at www.citigroup.com or www.citi.com.

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 Citigroup’s filings with the Securities and Exchange Commission.

—           Consumer results reflect continued growth in consumer finance and cards receivables and a favorable credit environment.

—           Corporate income declined as strong growth in transaction services revenues was more than offset by the impact of lower volatility, which reduced sales and trading results.

Citigroup (NYSE: C), 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, insurance, securities brokerage, and asset management.  Major brand names under Citigroup’s trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Travelers Life and Annuity. Additional information may be found at www.citigroup.com.

A financial summary follows.  Additional financial, statistical and business-related information, as well as business and segment trends, is included in a Financial Supplement.  Both the earnings release and the Financial Supplement are available on Citigroup’s web site at www.citigroup.com.

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 Citigroup’s filings with the Securities and Exchange Commission.

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