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CITICORP REPORTS FIRST QUARTER EARNINGS OF $370 MILLION -- UP FROM $183 MILLION IN SAME 1992 QUARTER

 /Editors: Following is a repeat transmission of NY017, Citicorp results, moved earlier today. We have been advised that there may have been a line dropped in transmission to some receiving systems in the 17th paragraph, under the subhead 'Core Business, Global Consumer.'/
 NEW YORK, April 20 /PRNewswire/ -- Citicorp today reported that in the 1993 first quarter it had operating earnings of $370 million, or $0.67 per common share fully diluted. These results were up from $183 million, or $0.37 per share, in the year-earlier quarter.
 Including the cumulative effect of adopting the new accounting method for income taxes, net income was $670 million, or $1.24 per common share fully diluted.
 John S. Reed, chairman, stated: "Key to these results were a continued drop in credit costs, and cost controls that held expenses. Revenues benefited from strong trading results, but were weak in the U.S. consumer business. Both our Global Consumer and Global Finance businesses turned in improved earnings."
 He said that the company continued to strengthen its balance sheet through building loan loss reserves and capital. Total regulatory capital was increased by $851 million during the quarter to $21 billion.
 The difference between operating margin and credit costs widened during the quarter, reaching $745 million, up from $498 million in the 1992 fourth quarter, Mr. Reed noted.
 Citicorp's revenues of $4.3 billion were flat compared with the seasonally high fourth quarter of 1992 but were 5 percent higher than the 1992 first quarter. Despite a pretax charge to operating expenses of $64 million ($35 million after tax) for costs associated with withdrawal from the business of portfolio management for customers in India, Citicorp held expenses at $2.4 billion, up slightly from the 1992 first quarter and down $9 million from the fourth quarter of 1992.
 Trading results in the quarter were strong, with record revenues from securities trading of $217 million, compared with $83 million in the 1992 first quarter, and foreign exchange revenues of $240 million in the 1993 first quarter, compared with the year-earlier quarter's $184 million.
 First quarter earnings included a net pretax gain from asset sales of $75 million ($41 million after tax), principally from the sale of Citicorp's minority interest in Taiwan First Investment and Trust. Net gains on asset sales for the same 1992 quarter were $390 million pretax ($218 million after tax).
 Commercial credit costs declined for the fifth straight quarter, to $380 million from $478 million in the fourth quarter of 1992 and from the peak of $792 million in the 1991 fourth quarter. Commercial cash- basis loans declined by $262 million in the quarter, while the total of commercial cash-basis loans and OREO remained flat. Consumer credit costs declined to $716 million from $775 million in the 1992 first quarter and $836 million in the 1992 fourth quarter.
 Citicorp added $75 million to commercial reserves, which totaled $2.3 billion at quarter-end, and $75 million to consumer reserves, which totaled $1.4 billion at March 31, 1993.
 The company increased its estimated Tier 1 capital ratio to 5.2 percent at quarter-end from 4.9 percent at Dec. 31, 1992, and combined Tier 1 and Tier 2 capital ratio to 10 percent from 9.6 percent at year- end 1992.
 In the first quarter, Citicorp adopted the Statement of Financial Accounting Standards No. 109, accounting for income taxes. As of Jan. 1, 1993, Citicorp recognized an additional $300 million in net income as the cumulative effect of adopting the new standard. A total of approximately $1.2 billion in unrecognized tax benefits remained at March 31, 1993.
 Citicorp will recognize transitional costs over a 20-year period from adoption of a new accounting standard, SFAS No. 106, related to postretirement benefits, and expects no material effect on its results.
 Core Businesses
 Global Consumer
 Earnings in the Global Consumer businesses increased to $320 million in the first quarter, up 30 percent from the 1992 first quarter.
 Consumer earnings were strong across major market regions, with about half coming from Asia/Pacific and Latin America, and the rest from North America, Europe and Japan. The private bank also showed very good growth.
 Revenues of $2.6 billion (adjusted for the effect of credit card securitization) were even with those in the 1992 first quarter. The lack of growth reflected the effect on U.S. revenues of the soft economy. Despite lower revenues, the U.S. businesses benefited from lower credit costs and good expense control.
 Operating expenses worldwide of $1.4 billion declined by $25 million, a 2 percent improvement compared with the prior year.
 Net credit costs improved by $59 million from the same prior-year quarter on a 15 percent improvement in U.S. credit card losses. Total consumer delinquencies of 90 days and over on the balance sheet were $3.9 billion, unchanged from year-end 1992. Delinquent balances were stable in the mortgage portfolio.
 Global Finance
 Global Finance reported earnings of $353 million for the first quarter of 1993, up $193 million from the year-ago first quarter. The improvement was principally in the European businesses and reflected lower credit costs and higher revenues compared with a year ago.
 First quarter 1993 revenues of $1.4 billion (excluding the cost to carry) increased from $1.3 billion in the same 1992 quarter. Securities trading in the first quarter was strong, primarily in Europe, and foreign exchange had solid results.
 Expenses of $827 million (excluding OREO costs) in the 1993 first quarter were up $70 million from the year ago quarter, due largely to the previously mentioned expense in India.
 The credit provision for the first quarter of 1993 included net write-offs of $36 million, down from $206 million in the 1992 first quarter. Commercial cash-basis loans declined to $1.3 billion from $1.9 billion a year ago, while OREO remained essentially flat.
 Global Finance includes the commercial and financial institutions businesses worldwide other than commercial real estate in North America.
 North America Commercial Real Estate
 Commercial real estate activities in the United States and Canada reported a net loss of $202 million in the first quarter of 1993, an improvement from the loss of $462 million in the year-ago quarter, reflecting a lower credit provision.
 Net write-offs of $168 million continued their downward trend of the prior three quarters from $362 million in the first quarter of 1992. Cash-basis loans at March 31, 1993, were $2.6 billion, down from $3.1 billion a year earlier and $2.7 billion at the end of 1992.
 At March 31, 1993, the OREO portfolio totaled $3 billion, consisting of $1.7 billion of loans designated as in-substance foreclosed (ISF) and $1.3 billion of properties owned, up from $2.3 billion at the end of the 1992 first quarter and $2.9 billion at the end of 1992.
 During the 1993 first quarter, Citicorp sold properties through individual sales for a total of $125 million (9 percent of the owned portion of the OREO portfolio).
 Cross-Border Refinancing Portfolio
 The cross-border refinancing portfolio reported earnings of $40 million in the first quarter of 1993, compared with $130 million a year ago, which reflected a release of $100 million from the allowance for credit losses.
 Further progress was made during the first quarter in restructuring Brazil's medium- and long-term commercial bank debt. As of March 31, 1993, commitments to Brazil's 1992 financing plan had been received from creditors holding more than 98 percent of the country's external debt. The agreement, when completed, would have generally positive future effects on the company's earnings, but the timing and amounts cannot yet be determined.
 On April 7, Argentina completed its financing plan by issuing bonds to the holders of the country's commercial bank debt. The effect on Citicorp was not material, since substantially all of its debt covered by that transaction had been converted to equity.
 Capital
 Citicorp estimated that regulatory assets were $210 billion at the quarter-end, unchanged from the 1992 year-end and down $13 billion from March 31, 1992, and that its Tier 1 capital ratio was 5.2 percent, up from 4.9 percent at year-end and 4.1 percent a year ago. Citicorp's combined Tier 1 and Tier 2 capital ratio was estimated at 10 percent, compared with 9.6 percent at year-end and 8.1 percent a year ago.
 Tier 1 capital increased $681 million during the quarter to $10.9 billion, while total Tier 1 and Tier 2 capital increased $851 million to $21 billion, chiefly from retained earnings.
 Following are tables of financial highlights, an analysis of operating margin and pretax earnings, business results and credit indicators, along with financial statements. Further details concerning the financial results will be available in Citicorp's Form 10-Q to be published in May.
 CITICORP
 Key Ratios & Other Consolidated Financial Data
 First Quarter Percent
 1993 1992 Change
 NET INCOME ($ Millions):
 Before Cumulative Effect
 of Accounting Change $ 370 $ 183 N/M
 After Cumulative Effect
 of Accounting Change(A) $ 670 $ 183 N/M
 PER COMMON SHARE:
 On Common and Common Equivalent Shares
 Net Inc. Before Cum. Effect
 of Accounting Change $ 0.71 $ 0.37 92
 Net Inc. After Cum. Effect
 of Accounting Change(A) $ 1.38 $ 0.37 N/M
 Assuming Full Dilution
 Net Inc. Before Cum. Effect
 of Accounting Change $ 0.67 $ 0.37 81
 Net Inc. After Cum. Effect
 of Accounting Change(A) $ 1.24 $ 0.37 N/M
 Common Equity $ 23.21 $ 21.17 10
 Closing Stock Price
 at Quarter End $ 29.50 $ 16.50 79
 PROFITABILITY RATIOS (IN PCTS.):
 Return on Assets:
 Before Accounting Change 0.67 0.33 -
 After Accounting Change(A). 0.80 0.33 -
 Return on Common Equity (In Pcts.):
 Before Accounting Change 14.3 7.2 -
 After Accounting Change(A). 17.9 7.2 -
 CAPITAL ($M):
 Tier 1 $10,943 $ 9,056 21
 Tier 1 & 2 (B) $20,962 $18,112 16
 Tier 1 Ratio (B) (in pcts.) 5.2 4.1 -
 Tier 1 & 2 Ratio (B) (in pcts.) 10.0 8.1 -
 Common Equity as a
 Percent of Total Assets 4.0 3.4 -
 Total Equity as a
 Percent of Total Assets 5.5 4.5 -
 DIVIDENDS DECLARED ($M):
 Preferred $ 73 $ 50 46
 (A) -- Includes cumulative effect of adopting Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes", as of Jan. 1, 1993.
 (B) -- Estimated.
 N/M -- Not meaningful as percentage exceeds 100 percent.
 -0- 4/20/93 R
 /CONTACT: John M. Morris, 212-559-4285, or investors, Frederick A. Roesch, 212-559-2715, both of Citicorp/
 (CCI)


CO: Citicorp ST: New York IN: FIN SU: ERN

KD-SM -- NY017A -- 8015 04/20/93 11:32 EDT
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Date:Apr 20, 1993
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