Citicorp first quarter net income reaches $995 million, up 9% on 10% revenue gain.NEW YORK--(BUSINESS WIRE)--April 15, 1997-- Earnings per common share rose 15% to $2.01; Return on common equity remains above 20% -0-
First Quarter (Dollars in Millions, 1997 1996 Change
except EPS)
Adjusted Revenue $5,627 $5,117 10%
Net Income 995 914 9%
Earnings Per Share (Fully Diluted) $2.01 $1.75 15%
Return on Common Equity (%) 20.8 20.2 -
Return on Assets (%) 1.41 1.37 -
Average Shares Outstanding (Fully 476.0 500.8 -
Diluted)
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Citicorp today reported that net income in the 1997 first quarter
reached $995 million, up $81 million or 9% over the same 1996 period.
Earnings per fully diluted common share were $2.01, up 15% over the
1996 first quarter.
"Our first quarter results are on track," said John S. Reed,
Citicorp Chairman. "We are accelerating our plans to get fully
engaged in our business directions, to offset continuing weakness in
the U.S. consumer credit environment plus the need to fund the
expansion of our franchise in the emerging markets and the
globalization of our processing base. We expect to end 1998 fully
engaged in our business strategy, with the improved momentum implied
by it."
Excluding a previously disclosed incremental $60 million pretax
charge for performance-based options, the first quarter's results
represented earnings per share of $2.09 and achieved the following
against Citicorp's business directions performance targets: a 13%
gain in net income, a return on common equity of 21.6%, and a ratio
of incremental revenue to expense of 2.1 to 1 (1.7 to 1 including the
charge). During the quarter, the company generated an estimated $0.7
billion of free capital and repurchased 6.1 million shares of common
stock for $704 million.
Citicorp's consumer businesses -- Citibanking, Cards, and the
Private Bank -- earned $490 million in the quarter on adjusted
revenue of $3.5 billion. Net income from serving corporate banking
customers worldwide was $650 million in the quarter on adjusted
revenue of $1.9 billion.
Details follow:
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Consumer businesses earn $490 million in the quarter, Cards credit costs continued high First Quarter (Dollars in Millions) 1997 1996 Change Adjusted Revenue $3,487 $3,253 7% Adjusted Operating Expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. 1,868 1,755 6% Operating Margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: 1,619 1,498 8% Credit Costs 894 706 27% Income before Taxes 700 742 (6)% Net Income 490 505 (3)% Return on Assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). (%) 1.52 1.62 - -0- Consumer business net income of $490 million in the quarter declined $15 million or 3% from the 1996 first quarter. The primary factor was a 14% decline in Cards earnings, partially offset by improved earnings in the Private Bank and Citibanking. Adjusted revenue of $3.5 billion in the quarter rose $234 million or 7% from the 1996 first quarter. Managed net interest revenue and fee and commission revenue were up 7% and 9%, respectively, from the year- ago quarter. Expense of $1.9 billion increased $113 million or 6%. Excluding the effect of foreign currency translation resulting from a strengthening dollar, both revenue and expense increased 9%. Consumer credit costs of $894 million were $50 million higher than the 1996 fourth quarter and $188 million higher than the 1996 first quarter. The ratio of net credit losses to average managed loans was 2.69% in the quarter, compared with 2.51% in the preceding quarter and 2.19% a year-ago. The increase was in Cards, while Citibanking and Private Bank credit costs improved modestly. Consumer businesses continued to build the allowance for credit losses, adding $25 million above net credit losses for Cards. Consumer net income in the emerging markets for the 1997 first quarter was $247 million, up $27 million or 12% from the 1996 first quarter, reflecting improvements across all three businesses. Developed markets net income of $243 million declined by $42 million or 15% from the year-ago quarter, primarily due to the lower earnings in Cards. Citibank CITIBANK First National City Bank was ranked top financial institution and sixth corporation overall in Far Eastern Economic Review's annual survey of the reputation in Asia of multinational corporations
Citibanking Citibanking activities -- which deliver products and services to customers through branches and electronic delivery systems -- had net income in the 1997 first quarter of $187 million, up $8 million or 4% from the 1996 first quarter. Return on assets in the quarter was 0.92%, slightly higher than a year ago. Revenue of $1.5 billion in the quarter was up $57 million or 4% -- 7% excluding the effect of foreign currency translation -- from the 1996 first quarter, reflecting higher business volumes. Excluding the translation effect, revenue increased 8% in the developed markets, and 5% in the emerging markets, reflecting double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. growth in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and slowed revenue growth in Asia Pacific. Expense of $1.0 billion in the quarter increased $67 million or 7% from the 1996 first quarter. Excluding the effect of foreign currency translation, expenses were up 10%, including 9% in the developed markets and 11% in the emerging markets, in support of higher business volumes, new product development, and franchise expansion, as well as technology initiatives. In the quarter, an additional 29 branches were upgraded to the Citibanking standard for enhancing customer relationships and efficiency, bringing the total of remodeled branches to 584 worldwide, now more than half of total branches. In Latin America, Citibanking expanded into its 13th country, the Dominican Republic Dominican Republic (dəmĭn`ĭkən), republic (2005 est. pop. 8,950,000), 18,700 sq mi (48,442 sq km), West Indies, on the eastern two thirds of the island of Hispaniola. The capital and largest city is Santo Domingo. , and is now serving consumers in 42 countries worldwide. Credit costs of $148 million in the quarter were down $7 million or 5% from the 1996 fourth quarter and down $10 million or 6% from the year- ago quarter, reflecting a net credit loss ratio of 0.91%, down from 0.94% in the previous quarter and 0.97% in the 1996 first quarter. Cards Net income in Cards worldwide -- bankcards, Diners Club Diners Club International, originally founded as Diners Club, is a credit card company formed in 1950 by Frank X. McNamara, Ralph Schneider and Casey R. Taylor. When it first emerged, it became the first independent credit card company in the world. , and private label cards -- was $224 million in the quarter, a decrease of $37 million or 14% from the 1996 first quarter. The emerging markets Cards business, which increased net income by 20% from the year-ago quarter, represented approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 41% of 1997 first quarter Cards earnings. Earnings in the developed markets Cards businesses declined from the 1996 first quarter, primarily in the U.S. bankcard bank·card n. A card issued by a bank authorizing the holder to receive bank services and often functioning as a debit card. business which continued to operate in a challenging environment, characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by competitive pressures and a weaker credit climate. Cards worldwide return on managed assets in the first quarter was 1.59%, compared with 1.96% in the year-ago quarter. Cards revenue of $1.8 billion in the quarter increased by $153 million or 10% from the 1996 first quarter. Revenue in the developed markets was up 8%, including 11% growth in U.S. bankcards which reflected the benefit of new risk and relationship-based pricing strategies There are many ways in which the price of a product can be determined. The following are the foremost strategies that businesses are likely to use. Competition-based pricing Setting the price based upon prices of the similar competitor products. , and an increase in managed receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed of $2.5 billion or 6% to $45.1 billion. Charge volumes in the U.S. bankcards business increased from the year-ago quarter by $1.6 billion or 8% to $23.0 billion. First quarter revenue in the emerging markets Cards businesses was 16% higher than the year-ago quarter, reflecting continued growth in the Asia Pacific business, and strong results in Latin America. Cards in force worldwide, including those issued by affiliates, were 61 million at the end of the quarter, an increase of two million from a year-ago. The number of cards in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. was 41 million; and cards in Latin America, Asia, and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). totaled nine million, eight
million, and three million, respectively. Cards, including Diners Club,
operates in 43 countries.
Expense in worldwide Cards of $660 million increased $42 million or 7% from the 1996 first quarter. Expense in the developed markets was up 6%, primarily reflecting investment spending in the U.S. for the enhanced cardmember database and analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. tools, as well as increased collection efforts. Expense in the emerging markets Cards businesses increased 11% in support of higher loan volumes, as well as continued investment in the franchise. Credit costs in U.S. bankcards continued to increase, rising in the quarter to $656 million or 5.91% of average managed loans, compared with $608 million or 5.45% in the 1996 fourth quarter, and $467 million or 4.38% in the 1996 first quarter. The bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most rate in the 1997 first quarter was a seasonally low 36.6% of gross U.S. bankcard write-offs, compared with 38.0% in the preceding quarter and 34.3% in the 1996folio (1) Text management software for the professional reference publishing market from Fast Search & Transfer, Oslo, Norway and Boston, MA (www.fastsearch.com). Known as FAST Folio since its acquisition in 2004 from NextPage, Inc. at the end of the quarter, compared with $th $189 million or 2.13% in the preceding quarter and $176 million or 2.31% in the year-ago quarter. In India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. , Diners Club, which holds the largest share of the country's cards market, formed an alliance with British Airways British Airways in full British Airways PLC International passenger airline based in London. In 1936 British Airways Ltd. was founded through the merger of three smaller airlines. to offer cardholders a mileage MILEAGE. A compensation allowed by law to officers, for their trouble and expenses in travelling on public business. 2. The mileage allowed to members of congress, is eight dollars for every twenty miles of estimated distance, by the most usual roads, from his program, a first in India. Private Bank Private Bank net income of $79 million in the quarter increased $14 million or 22% from the 1996 first quarter, and resulted in a return on assets of 1.88% for the quarter, compared with 1.63% in the year- earlier quarter. Revenue of $270 million in the quarter was up $24 million or 10%, reflecting growth of 15% in the emerging markets and 8% in the developed markets. Revenue growth was led by fees and commissions, up 15%, compared with the 1996 quarter, and by improved trading-related results. Expense of $166 million in the quarter increased $4 million or 2% from 1996. Excluding the effect of foreign currency translation, expense increased 6%, primarily due to higher salary levels, including a 4% increase in staff. Other expense growth was muted mut·ed adj. 1. a. Muffled; indistinct: a muted voice. b. Mute or subdued; softened: muted colors. 2. during the 1997 first quarter as cost savings from various strategic cost management initiatives funded base expense growth as well as new marketing, technology, and structural programs. Credit recoveries of $1 million in the quarter compared with a charge of $1 million in the year-ago period. Overall credit trends improved, with loans delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. 90 days or more down to $198 million or 1.28% of loans from $260 million or 1.76% a year-earlier, reflecting continued active portfolio management and the effect of improving economic conditions on the customer base. Client business volumes under management at the end of the quarter totaled $98 billion, up $8 billion from a year earlier. Growth was led by the advisory and discretionary investments areas. Corporate Banking improves earnings 39% to $650 million in first quarter; Return on assets rises to 1.77% -0-
First Quarter (Dollars in Millions) 1997 1996 Change
Adjusted Revenue $1,934 $1,617 20%
Adjusted Operating Expense 1,151 1,011 14%
Operating Margin 783 606 29%
Credit (Benefits) Costs (75) 15 NM
Income before Taxes 858 591 45%
Net Income 650 469 39%
Return on Assets (%) 1.77 1.36 -
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Corporate Banking net income of $650 million in the first quarter
increased $181 million or 39% from the 1996 first quarter while
average assets grew $10 billion or 7%. These results produced a
return on assets during the quarter of 1.77%, a 41 basis point
improvement from the year-ago quarter. Net income from Emerging
Markets was $450 million or 69% of total Corporate Banking earnings,
and Global Relationship Banking's net income was $200 million or 31%
of total Corporate Banking net income.
Revenue of $1.9 billion in the quarter increased $317 million or
20% from the year-ago quarter. Expense of $1.2 billion in the
quarter increased $140 million or 14ature of pretax earnings.
Citibank's corporate banking activities continued to be
recognized in various polls and surveys by business magazines,
including numberepublic, Indonesia,
Kuwait, Laos, Mexico, and t, up $39 million
or 8% from the 1996 quarter. Average assets grew $11 billion or 20%,
resulting in a return on assets of 2.77% in the 1997 first quarter,
compared witn in the
1996 quarter, and included $46 millioibutable to less favorable market conditions
tth Global
Relationship Banking.
Expense of $451 million in the 1997 first quarter increased $72
million or 19% from the year-ago quarter, primarily reflecting
investment spending to build the franchise and costs associated with
implementing Citicorp's embedded bank plan to gain market share in
selected emerging market countries.
Credit costs were a net benefit of $36 million in the 1997 first
quarter and compared with a net charge of $10 million in the 1996
quarter. Credit costs in the 1997 quarter included a $50 million
recovery from the refinancing agreement concluded with Peru.
In China, Citibank, having been the only U.S. based bank and one
of eight non-Chinese banks licensed to conduct a local currency
business, opened a branch in Pudong -- its sixth office in the
country -- in preparation for launching local currency operations on
April 4.
Global Relationship Banking
Net income from the Global Relationship Banking business in North
America, Europe, and Japan was $200 million, up $121 million from the
1996 first quarter, despite an increase in the effective income tax
rate to 41% from 29% in the 1996 first quarter. Income before taxes
totaled $340 million, up $228 million from the 1996 first quarter.
Return on assets of 0.98% improved from 0.38% in the 1996 first
quarter.
Revenue of $1.0 billion grew $252 million or 34% from the 1996
first quarter. Trading-related revenue of $319 million increased
$154 million or 93% and venture capital revenue of $93 million
improved $55 million from the unusually low 1996 levels. These
improvements were complemented by a $32 million gain on the sale of
an investment, growth in transaction banking services revenue, and
improved treasury results, partially offset by net interest revenue
spread compression.
Expense of $700 million increased $68 million or 11% compared
with the 1996 first quarter, primarily reflecting increased spending
on technology, volume-related expense in transaction banking
services, and higher incentive compensation associated with revenue
growth, partially offset by reductions associated with the
disposition of non- strategic businesses.
Credit costs in the quarter were a net benefit of $39 million,
compared with a net charge of $5 million in the 1996 first quarter
and primarily reflected both lower gross write-offs and higher
recoveries.
Other Items
Citicorp's effective tax rate was 38% in both the 1997 and 1996
first quarters. Income taxes are attributed to core businesses on
the basis of local tax rates, which resulted in effective tax rates
for the core businesses of 27% in both the 1997 and 1996 first
quarters. The difference between the core businesses' tax rates and
Citicorp's overall effective rate in each period is included in
Corporate Items.
Corporate Items included pretax expense of $72 million, $70
million, and $14 million for performance-based options in the 1997
first quarter, the 1996 fourth quarter, and the 1996 first quarter,
respectively. These noncash charges were offset by increases to
common stockholders' equity. All of these options are now fully
vested.
The adoption of Statement of Financial Accounting Standards No.
125 on January 1, 1997 had no material impact on Citicorp.
At March 31, 1997, total credit loss reserves (including reserves
for off-balance sheet credit exposures) were $6.0 billion.
Tier 1 capital was $20.3 billion, total capital was estimated at
$29.3 billion, and the Tier 1 and total capital ratios were estimated
at 8.4% and 12.1%, respectively, at March 31, 1997. The ratio of
common equity to total assets was 6.5%. The number of shares
acquired since June 20, 1995, when the Board of Directors authorized
the stock repurchase program, totaled 65.3 million for an outlay of
$5.3 billion. As expanded in January and November 1996, the program
is authorized to make total purchases for up to $8.5 billion.
Average common shares outstanding for the purpose of computing
fully diluted earnings per share were 476.0 million in the 1997 first
quarter, 480.9 million in the preceding quarter, and 500.8 million in
the 1996 first quarter, principally reflecting the net effect of the
share repurchase program and employee stock plans.
Tables detailing key Financial Summary, Earnings Analysis,
Consolidated Statement of Income, Consolidated Balance Sheet,
Calculation of Earnings Per Share, Other Revenue, and Trading-Related
Revenue follow. Other financial tables will be available with the
release on Citicorp's website (http://www@citicorp.com) and in the
United States on FAX-ON-DEMAND at 1-800-853-1754.
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FINANCIAL SUMMARY First Quarter % 1997 1996 Change Net Income (In $995 $914 9 Millions of Dollars) Net Income Per Share Common & Common Equivalent Shares $2.01 $1.82 10 Assuming Full Dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. $2.01 $1.75 15 Common Stockholders' Equity Per Share $41.08 $36.79 12 Closing Stock Price At Quarter End $108.25 $80.00 35 Financial Ratios Return on Assets 1.41% 1.37% - Return on Common Stockholders' 20.8% 20.2% - Equity Capital (Dollars in Billions) Tier 1 $20.3 $19.0 - Total (Tier 1 and 2) 29.3 28.0 - (A) Tier 1 Ratio (A) 8.4% 8.4% - Total Ratio (Tier 1 12.1% 12.4% - and 2) (A) Common Equity as a Percentage of Total 6.5% 6.7% - Assets Total Equity as a Percentage of Total 7.2% 7.5% - Assets Dividends Declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. (In Millions of Dollars) Common $243 $210 - Preferred 38 47 - (A) 1997 estimated. Earnings Analysis (In Millions of Dollars) First Quarter % 1997 1996 Change Total Revenue $5,196 $4,828 8 Effect of Credit Card 434 294 48 Securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. Activity (A) Net Cost To Carry (3) (5) (40) (B) Adjusted Revenue 5,627 5,117 10 Total Operating 3,169 2,860 11 Expense Net OREO Benefits 10 12 (17) (C) Adjusted Operating Expense 3,179 2,872 11 Operating Margin 2,448 2,245 9 Consumer Credit 894 706 27 Costs (D) Commercial Credit (Benefits) Costs (75) 15 NM (E) Operating Margin Less Credit Costs 1,629 1,524 7 Additional 25 50 (50) Provision (F) Income Before Taxes 1,604 1,474 9 Income Taxes 609 560 9 Net Income $ 995 $ 914 9 (A) Includes effect related to credit card receivables held for sale commencing with the 1997 first quarter (see page 16). (B) Principally the net cost to carry commercial cash-basis loans and other real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most ("OREO"). (C) Principally gains and losses on sales, direct revenue and expense, and writedowns of commercial OREO. (D) Principally consumer net credit write-offs adjusted for the effect of credit card securitization activity. (E) Includes commercial net credit (recoveries) write-offs, net cost to carry, and net OREO benefits. (F) Primarily charges for credit losses in excess of net write-offs. NM Not meaningful, as percentage equals or exceeds 100%. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Statement of Income CITICORP and Subsidiaries (In Millions of First Quarter % Dollars, Except Per Share 1997 1996 Change Amounts) Net Interest Revenue $2,804 $2,685 4 Provision for Credit Losses 423 494 (14) Net Interest Revenue after Provision for Credit Losses 2,381 2,191 9 Fees, Commissions, and Other Revenue Fees and Commissions 1,352 1,312 3 Foreign Exchange 297 205 45 Trading Account Trading Account 1. An account similar to a traditional bank account, holding cash and securities, and is administered by an investment dealer. 2. An account held at a financial institution and administered by an investment dealer that the account holder uses to employ a 198 90 NM Securities Transactions 108 102 6 Other Revenue 437 434 1 Total Fees, Commissions, and Other Revenue 2,392 2,143 12 Operating Expense Salaries 1,264 1,132 12 Employee Benefits 401 337 19 Total Employee Expense 1,665 1,469 13 Net Premises premises n. 1) in real estate, land and the improvements on it, a building, store, shop, apartment, or other designated structure. The exact premises may be important in determining if an outbuilding (shed, cabana, detached garage) is insured or whether a person and Equipment Expense 490 457 7 Other Expense 1,014 934 9 Total Operating Expense 3,169 2,860 11 Income Before Taxes 1,604 1,474 9 Income Taxes 609 560 9 Net Income $ 995 $ 914 9 Income Applicable to Common Stock $957 $871 10 Earnings Per Share: On Common and Common Equivalent Shares $2.01 $1.82 10 Assuming Full Dilution $2.01 $1.75 15 NM Not meaningful, as percentage equals or exceeds 100%. Consolidated Balance Sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. CITICORP and Subsidiaries March 31, December December: see month. % (In Millions of Dollars) 1997 31, Change 1996 Assets Cash and Due from Banks $ 6,574 $ 6,905 (5) Deposits at Interest with Banks 12,593 11,648 8 Securities, at Fair Value Available for Sale 30,608 26,062 17 Venture Capital 2,266 2,124 7 Trading Account Assets Trading account assets refer to a separate account managed by banks that buy (underwriting) U.S. government securities and other securities for their own trading account or for resale at a profit to other banks and to the public, rather than for investment in the bank's own 33,196 30,785 8 Loans Held for Sale (A) 3,133 - NM Federal Funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve Sold and Securities Purchased Under Resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. Agreements 11,844 11,133 6 Loans, Net Consumer 106,721 111,847 (5) Commercial 65,750 62,765 5 Loans, Net of Unearned Income Unearned Income Any income that comes from investments and other sources unrelated to employment services. Notes: Examples of unearned income include interest from a savings account, bond interest, tips, alimony, and dividends from stock. 172,471 174,612 (1) Allowance for Credit Losses (5,766) (5,503) 5 Total Loans, Net 166,705 169,109 (1) Customers' Acceptance Liability 2,188 2,077 5 Premises and Equipment, Net 4,655 4,667 - Interest and Fees Receivable 3,131 3,068 2 Other Assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. 13,461 13,440 - Total $290,354 $281,018 3 Liabilities Non-Interest-Bearing Deposits in $ 14,569 $ 14,867 (2) U.S. Offices Interest-Bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid Deposits in U.S. 39,820 40,254 (1) Offices Non-Interest-Bearing Deposits in 10,476 9,891 6 Offices Outside the U.S. Interest-Bearing Deposits in Offices 123,983 119,943 3 Outside the U.S. Total Deposits 188,848 184,955 2 Trading Account Liabilities 23,235 22,003 6 Purchased Funds and Other Borrowings 21,609 18,191 19 Acceptances Outstanding 2,235 2,104 6 Accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. Taxes and Other Expense 6,038 5,992 1 Other Liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. 8,785 8,201 7 Long-Term Debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. 18,824 18,850 - Stockholders' Equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. (Without par value) 1,903 2,078 (8) Common Stock ($1.00 par value) 506 506 - Issued Shares: 506,298,235 in each period Surplus 6,612 6,595 - Retained Earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. 15,017 14,303 5 Net Unrealized Gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. - Securities 687 676 2 Available for Sale Foreign Currency Translation (517) (486) 6 Common Stock in Treasury, at Cost (3,428) (2,950) 16 Shares: 46,773,535 and 43,081,217, respectively Total Stockholders' Equity 20,780 20,722 - Total $290,354 $281,018 3 (A) Commencing with the first quarter 1997, Citicorp classifies credit card and mortgage loans intended for sale as loans held for sale, which are accounted for at the lower of cost or market lower of cost or market A method for determining an asset's value such that either the original cost or the current replacement cost, whichever is lowest, is used for financial reporting purposes. value. NM Not meaningful, as percentage equals or exceeds 100%. Calculation of Earnings Per Share First Quarter 1997 First Quarter 1996 On Common On Common and Common Assuming and Common Assuming Equivalent Full Equivalent Full (In Millions, except Per Shares Dilution Shares Dilution Share Amounts) Earnings Income Applicable to $957 $957 $871 $871 Common Stock Dividends on Convertible Preferred Stock, Series 12 and - - - 5 Series 13 (A) Income Applicable to Common Stock, Adjusted $957 $957 $871 $876 Shares Weighted-Average Common Shares Outstanding (A) 461.4 461.4 463.4 463.4 Convertible Preferred Stock, - - - 21.0 Series 12 and Series 13 (A) Other Common Equivalent 14.6 14.6 15.2 16.4 Shares (B) Total 476.0 476.0 478.6 500.8 Earnings Per Share Net Income $2.01 $2.01 $1.82 $1.75 (A) During the first quarter of 1996, the remaining Convertible Preferred Stock, Series 12 and 13 were converted to 59.0 million shares of common stock. The shares are included in the fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. on an if-converted basis up to conversion dates, and from conversion dates forward these shares are included in weighted-average common shares outstanding. (B) Includes the dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). of stock options and stock purchase agreements computed using the treasury stock method and shares issuable under deferred stock awards. March 31, March 31, (In Thousands) 1997 1996 Common Shares Outstanding 459,525 480,657 Other Revenue First Quarter % (In Millions of 1997 1996(A) Change Dollars) Credit Card Securitization $165 $233 (29) Activity (B) Venture Capital 93 38 NM Affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. Earnings 59 62 (5) Net Asset Gains and Other Items 120 101 19 Total $437 $434 1 (A) Reclassified to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the latest quarter's presentation. (B) Includes net credit losses on credit card receivables held for sale commencing with the 1997 first quarter (see page 16). NM Not meaningful, as percentage equals or exceeds 100%. Trading-Related First QuaCorporate Banking: Emerging Markets 342 57 Consumer and Other 52 50 4 Total l $589ivity includes foreign excha nge spot, forward, and option contracts. (C) Derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. activity primarily includes interest rate and currency swaps, options, financial futures financial futures Obligations to buy or sell particular positions in financial instruments. The features of financial futures are identical to those of any futures contract except that the asset for delivery is of a financial nature. , and equity and commodity contracts. (D) Fixed income activity principally includes debt instruments including government and corporate debt as well as mortgage assets. (E) Primarily net interest revenue. NM Not meaningful, as percentage equals or exceeds 100%. -0- CONTACT: Press contact: John M. Morris (212) 559-4285 Investor contact: Frederick Frederick, city, United States Frederick, city (1990 pop. 40,148), seat of Frederick co., NW Md.; settled 1745, inc. 1817. The processing center of a fertile farm and dairying area, it makes beer, household items, optical and glass products, leather goods, A. Roesch (212) 559-2715 |
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