Citigroup Announces 4th Quarter Core Income of $3.33 Billion, Up 11%, Net of $146 Million Charge for Transportation Loss Provision and Conforming Adjustments for Associates.Business Editors NEW YORK--(BUSINESS WIRE)--Jan. 16, 2001 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. Core Eps Up 12% to $0.65 4th Quarter Revenue Increased 11% 2000 Core Income Up 25% to Record $14.14 Billion, Net of $298 Million Charge for Transportation Loss Provision and Conforming con·form v. con·formed, con·form·ing, con·forms v.intr. 1. To correspond in form or character; be similar. 2. Adjustments for Associates; Diluted Core Eps of $2.74 Full Year Revenue Up 14% 4th Quarter Net Income of $2.84 Billion, Net of $491 Million in Restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and Merger-Related Items Full Year Net Income of $13.52 Billion, Net of $621 Million in Restructuring and Merger-Related Items Citigroup Citigroup U.S. holding company formed in 1998 from the merger of Citicorp (itself a holding company incorporated in 1967) and Travelers Group, Inc. The $70 billion merger included one of the largest U.S. investment banks, Salomon Smith Barney Inc. Inc. (NYSE NYSE See: New York Stock Exchange :C) today reported core income for the fourth quarter of $3.33 billion, or $0.65 per share, diluted, increasing 12%, after an aggregate charge of $146 million (or $0.03/share) relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a transportation loss provision for the Associates' truck loan and leasing portfolio and adjustments to reflect the timing differences of conforming Associates' accounting policies to those of Citigroup. Core income for the full year was a record $14.14 billion, or $2.74 per share, diluted, for the year ended December December: see month. 31, 2000, a 25% increase over the prior year. These results are after an aggregate charge of $298 million (or $0.06/share) relating to the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. items. Net income of $13.52 billion for the year ended December 31, 2000 was also reduced by $621 million in restructuring and merger-related items primarily related to the acquisition of the Associates -- Each of Citigroup's business segments continued strong performance in the quarter, with growth of 25% in the Global Consumer Group, 10% in the Global Corporate and Investment Bank, and 8% for Global Investment Management and Private Banking; -- Total revenue increased 14%; -- Return on common equity was 24% for the full year; -- Total equity (including trust preferred securities) increased to $71.2 billion at December 31, 2000; o The Global Corporate and Investment Bank was named "Bank of the Year" by International Financial Review, for the second consecutive year; -- Citibank On-Line, the company's recently launched Internet banking product, was ranked number one by Gomez and Forrester Research. "This has been a year of enormous accomplishment for Citigroup and we are delighted with the strength of our performance company-wide," said Sanford I. Weill Sanford I. Weill, commonly known as Sandy Weill (born March 16 1933) is a banker, financier and philanthropist. He was formerly the chief executive officer and chairman of Citigroup Inc. He served in those positions until October 1 2003 and April 18, 2006 respectively. , Chairman and Chief Executive Officer of Citigroup. "We are among the top earning companies in the world, with all of our major business segments contributing to our success, and we continue to increase our base of recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. and predictable earnings. We are taking steps to assure that our footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. in rapidly growing markets is significant enough to take full advantage of the developing potential in these areas, and tailoring our investment, insurance and consumer finance products to the needs of the emerging middle class around the world. "The acquisitions of Schroders Schroders plc is a British investment management company with its headquarters in the City of London. It is traded on the London Stock Exchange and is a constituent of the FTSE 100 Index. and Associates are contributing to our core earnings even as they build our business capabilities in strategically important markets. In addition, we have made significant progress on our Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the strategy, with the launch of several new and well-accepted products into the consumer and corporate markets, including the number-one ranked Internet banking product." GLOBAL CONSUMER 4th Quarter Core Income: $1.47 Billion, up 25% from $1.17 Billion 2000 Core Income: $5.29 Billion, up 22% Citigroup's Global Consumer businesses contributed $1.47 billion in core income in the fourth quarter, rising 25% on the strength of 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. Cards' and Travelers Life and Annuity's performance, controlled expense growth, and generally stable credit trends across most businesses. Citigroup's global cards business, spanning 46 countries with 100 million accounts, increased 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 to $117.7 billion, generating core income of $650 million. During the year, Citigroup also launched a number of significant Internet-based products designed to meet a full spectrum of consumer financial needs, including MyCiti.com, the first account aggregation Account aggregation is a method that involves compiling information from different accounts, which may include bank accounts, credit card accounts, investment accounts, and other consumer or business accounts, into a single place. site to be offered by a major financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. firm, as well as c2it, one of the first person-to-person per·son-to-per·son adj. 1. Of or relating to a long-distance telephone call chargeable only when the caller speaks to an indicated person at the number reached. 2. payments capabilities over the internet. More than 8.2 million on-line accounts now access Citigroup's products and services over the internet. Cross marketing programs throughout the Global Consumer business continue to increase their contribution to results, as both SSB SSB Statistisk Sentralbyrå (Statistics Norway) SSB Super Smash Bros (video game) SSB Space Studies Board SSB Single Side Band SSB Single Stranded DNA-Binding Protein SSB Salomon Smith Barney mortgage referrals and the sale of Travelers individual annuities were strong in the quarter, and sales of Citifinancial home equity loans surged 43%. -- Core income from Banking/Lending rose 27% to $761 million, led by North America Cards, where managed receivables increased 5% or $4 billion from the third quarter and 17% from one year ago. The net interest margin improved by 19 basis points in the quarter, accelerating revenue growth to 6% and driving core income growth of 26% to $408 million from the prior year period. Citibanking North America benefited from 8% deposit growth and expense controls which offset spread compression compression, external stress applied to an object or substance, tending to cause a decrease in volume (see pressure). Gases can be compressed easily, solids and liquids to a very small degree if at all. and lower investment product fees, driving a 27% increase in core income. Mortgage Banking core income growth of 38% reflected volume growth in both mortgages and student loans, offset by lower spreads. Citifinancial continued to generate strong production rates, with receivables totaling more than $18 billion, up 18%, leading to core income growth of 22% in the quarter. -- Insurance core income increased 22% to $419 million. Primerica's core income rose 8%. Production was strong, reflecting a 28% increase in loans, 15% growth in mutual fund sales, and 16% in face amount of insurance issued, accompanied ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. by strong recruitment and licensing. Revenue growth was partly offset by investment in international expansion. Travelers Life and Annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. core income grew by 55%, driven by strong business volumes, higher net investment income and the absence of certain expenses occurring in the prior year quarter. Strong individual annuity sales continued in both proprietary and non-proprietary channels, yielding the highest net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight in five quarters. Travelers Property Casualty's Personal Lines income decline of 9% reflected a continuation continuation - continuation passing style of higher loss costs as well as lower favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. prior year reserve development partly offset by the incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. earnings from the minority interest buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may earlier in 2000. Net written premium growth, excluding SECURE, was 8% in the quarter. -- International core income increased 23%. In the developed markets of Western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). and Japan, income rose 43% to $129 million, led by substantial volume growth in Japan and the contribution of the 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. acquisition, completed earlier in 2000, as well as growth in loans and investment products across 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). . Emerging Markets Consumer
core income of $218 million grew 14%. Excluding Japan, Asia core income
increased 36% reflecting volume growth in cards and deposits and
improvements in credit costs. CEEMEA CEEMEA Central Eastern Europe Middle East & AfricaCEEMEA Central and Eastern Europe Middle East and Africa core income increased 40% due to increased volumes throughout the region. 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. core income fell 16% reflecting revenue weakness in certain Latin Lat·in n. 1. a. The Indo-European language of the ancient Latins and Romans and the most important cultural language of western Europe until the end of the 17th century. b. American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of markets, and lower earnings in Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. . Results in Mexico were impacted by the loss of a subsidy subsidy, financial assistance granted by a government or philanthropic foundation to a person or association for the purpose of promoting an enterprise considered beneficial to the public welfare. related to the Confia acquisition which was partially restored as a result of the recent agreement with the Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum Government. The agreement resulted in the recognition of $27 million of after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gains in the quarter, in addition to ongoing interest income. GLOBAL CORPORATE AND INVESTMENT BANK 4th Quarter Core Income: $1.41 Billion, up 10% from $1.28 Billion 2000 Core Income: $6.37 Billion, up 28% The Global Corporate and Investment Bank's core income rose 10% in the quarter, with 14% revenue growth, boosted by strong performance in the emerging markets. In addition to naming Citigroup as the "Bank of the Year" for the second year in a row, with particular emphasis on Salomon Noun 1. Salomon - American financier and American Revolutionary War patriot who helped fund the army during the American Revolution (1740?-1785) Haym Salomon Smith Barney's successful build-out Build-out is an urban planner’s estimate of the amount and location of potential development for an area. Build-out is one step of the land use planning process. Evaluation of potential development impacts begins with a build-out analysis. in Europe and Japan, International Financing Review also named Citibank/SSB "Global Loan House of the Year", and Citigroup "Latin American Bank of the Year." Citigroup was also named "Bank of the Year" by Finance Asia magazine Asia is a weekly Urdu magazine published from Lahore, Punjab, Pakistan. . Citibank's product capabilities in the emerging markets were recognized by Global Custodian magazine Global Custodian Magazine is the trade publication covering the international securities services industry. GlobalCustodian.com refers to website of Global Custodian Magazine, which is updated daily and provides news and events coverage of the custody and securities industry. , which named Citibank CITIBANK First National City Bank the top-rated custody bank in 19 emerging markets. In addition, Citibank was awarded "Best Bank" by Corporate Finance for project finance, cash management and foreign exchange, and named "Best Emerging Markets Bank in the World" by Global Finance. Citibank/SSB's global derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. and 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. businesses also received top accolades from Global Finance. Salomon Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. was further recognized for its lead advisory role in the "Deal of the Year," the merger of AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. and Time Warner, by Investment Dealers' Digest Digest: see Corpus Juris Civilis. (1) A compilation of all the traffic on a news group or mailing list. Digests can be daily or weekly. (2) Any compilation or summary. . Salomon Smith Barney continues to demonstrate leadership in capital markets, ranking #1 in global underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. , and has made substantial strides in global mergers and acquisitions moving to #4 from #7 one year ago. -- Reflecting the successful integration of these businesses, Salomon Smith Barney and The Global Relationship Bank are now reported on a combined basis. For the full year, core income rose 23% with a net revenue increase of 20%. In the fourth quarter, an industry-wide slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in several areas of investment banking and securities brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. activities drove a 13% decline in core income from the 1999 period, to $716 million. Results were also affected by higher expenses due to the Schroders and Copelco acquisitions in 2000, and a substantial increase in compensation costs in response to competitor practices and investment spending. Fees and commissions rose 3% in the quarter, primarily reflecting an increase in institutional securities commissions. Asset management and administration fees retained in this segment increased 29% largely in the Private Client wrap fee business where the firm continues its #1 position. Principal transactions revenue rose 2% reflecting higher equities and foreign exchange trading Foreign Exchange Trading or FX Trading, clients are able to hedge against, or speculate upon, changes in the exchange rate of two currencies. For example, a speculator can long EUR/USD in foreign exchange market in order to profit from capturing the appreciation of Euro against the income offset by a decline in fixed income trading. Investment banking revenue increased 8% as record merger and acquisition fees as well as increased fees from loans and structured products were partly offset by a significant decline in high-margin equity underwriting. Private client results reflected substantial growth for 2000, as the firm added a record 800 Financial Consultants and gross production per FC exceeded $500,000 for the year. For the full year, Private Client core income rose 17%, passing the $1 billion mark. However, for the quarter, core income declined to $199 million, as the business invested substantially in additional branches as well as in technology upgrades across the branch system. The number of accounts using Salomon Smith Barney's on-line Access service reached 1.5 million, almost tripling the household penetration from a year ago. -- Emerging Markets Corporate Banking reported record core income of $448 million, a 72% increase over the 1999 quarter, driven by strong business conditions in all regions, tight expense control management as well as credit improvements. Revenue growth of 24% reflected growth in transaction services and trading results, as well as the contribution of Bank Handlowy, acquired earlier in 2000. Expense growth was held to 9% (a 2% improvement over the1999 quarter excluding the impact of the Handlowy acquisition). The provision for loan losses continued to improve, down $90 million, primarily in the Asia region. -- Travelers Property Casualty Commercial Lines core income increased 25% driven by continued pricing improvements across all market segments, as well as the minority interest buyback earlier in 2000, partly offset by increased loss cost trends and lower net investment income. Net written premiums increased 22%, including the impact of Reliance Surety An individual who undertakes an obligation to pay a sum of money or to perform some duty or promise for another in the event that person fails to act. surety n. and the purchase of renewal rights for Reliance's middle market business and Frontier frontier, in U.S. history, the border area of settlement of Europeans and their descendants; it was vital in the conquest of the land between the Atlantic and the Pacific. specialty business. GLOBAL INVESTMENT MANAGEMENT AND PRIVATE BANKING 4th Quarter Core Income: $163 Million, up 8% from $151 Million 2000 Core Income: $685 Million, up 15% During the quarter, Citigroup's Global Investment Management and Private Banking Group continued to invest in developing its global research platform, improving investment performance and expanding its activities in the retirement services market, while increasing sales through proprietary distribution channels throughout the company. Revenues for the quarter rose 16%, with double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. growth experienced in the Private Bank and across Asset Management and Retirement Services, led by the increased ownership stakes in Garante and Siembra. -- Asset Management core income (including Retirement Services) was $78 million, unchanged from the prior year period, as revenue growth of 19% was offset by continued investment spending to build the business' global sales and marketing capacity as well as its research, quantitative and technology platforms. Assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. increased 6% to $401 billion as net flows were offset by declines in market values. -- Sales of the group's long term mutual funds and managed account products through the Salomon Smith Barney retail channel rose 71% to $6.5 billion, representing 56% of this channel in the quarter. The group's share of the Primerica channel was 54%, with $429 million in SSB Citi Asset Management U.S. mutual and money funds sold. Sales through Citibank's global retail banking network reached $3.0 billion in the quarter. Share of the U.S. branch channel reached 74%, following the successful launch of the Smith Barney mutual funds in the third quarter. Institutional client assets rose to $154 billion, including $5.5 billion in assets raised from Global Corporate and Investment Bank customers in the fourth quarter. -- Core income for the Private Bank rose 16% to $85 million. Revenues increased 11% with stronger asset management fees as well as higher interest income, partly offset by continued investment in sales infrastructure. Client business volumes rose 9%, reaching $153 billion. ASSOCIATES FIRST CAPITAL 4th Quarter Core Income: $289 million, Including $135 Million in Transportation Loss Provision and $11 Million in Conforming Adjustments 2000 Core Income: $1.38 Billion, down 1% Including Transportation Loss Provision and $163 Million in Conforming Adjustments Associates First Capital core income for the fourth quarter was $289 million, versus $394 million in the prior year period, reflecting an aggregate charge of $146 million relating to a transportation loss provision for the truck loan and leasing portfolio and adjustments reflecting the timing differences of conforming Associates' accounting policies to those of Citigroup. Full year core income of $1.38 billion also included $298 million for these items. Net income for Citigroup also reflects $459 million in restructuring and merger-related items in the fourth quarter as a result of the Associates acquisition. Revenue growth was 22% driven by higher net interest income as a result of 17% receivables growth. Expenses in the quarter rose 19%. CORPORATE/OTHER, E-CITI, AND INVESTMENT ACTIVITIES The loss from Corporate/Other decreased in the quarter primarily reflecting lower Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 costs at the corporate level partially offset by higher funding costs. Losses in e-Citi, the remainder of internet-related development activities not allocated to the individual businesses, improved from the prior year quarter. Income from Investment Activities was $203 million, down from the prior year and the prior quarter, reflecting realized and 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. in a number of private equity investments offset by lower market values in the company's public equity securities. Citigroup (NYSE: C), the preeminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae global financial services company, provides some 120 million consumers, corporations, governments and institutions in more than 100 countries 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 umbrella, a small canopy used as a protection against the sun in China, Egypt, and elsewhere in remote antiquity. It was often an emblem of rank. During the Middle Ages the umbrella became almost extinct in Europe; its usefulness was not rediscovered until the late are Citibank, CitiFinancial, Primerica, Salomon Smith Barney, and Travelers. 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 (http://www.citigroup.com). This document can also be obtained by calling 1-800-853-1754 within the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. or 732-935-2771 outside the United States. This document may contain froward-looking information subject to risks, uncertainties and information subject to risks, uncertainties and other factors that could materially affect results. For further information, please see Citigroup's reports filed with the SEC pursuant to the Securities Exchange Act of 1934 which are available at the SEC's website (www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. ).
Citigroup Segment Income Fourth Quarter %
----------------------
(In Millions of Dollars) 2000 1999 Change
Global Consumer
Citibanking North America $ 146 $ 115 27
Mortgage Banking 76 55 38
North America Cards 408 324 26
CitiFinancial 131 107 22
-------------------
Banking / Lending 761 601 27
-------------------
Travelers Life and Annuity 209 135 55
Primerica Financial Services 124 115 8
Personal Lines 86 94 (9)
-------------------
Insurance 419 344 22
-------------------
Western Europe 94 72 31
Japan 35 18 94
Emerging Markets
Consumer Banking 218 191 14
-------------------
Total International 347 281 23
-------------------
e-Consumer (45) (33) (36)
Other Consumer (16) (22) 27
-------------------
Total Global Consumer 1,466 1,171 25
-------------------
Global Corporate and
Investment Bank
Salomon Smith Barney and
The Global
Relationship Bank 716 824 (13)
Emerging Markets
Corporate Banking 448 260 72
Commercial Lines Insurance 250 200 25
-------------------
Total Global Corporate and
Investment Bank 1,414 1,284 10
-------------------
Global Investment Management
and Private Banking
SSB Citi Asset
Management Group 78 78 -
Global Private Bank 85 73 16
-------------------
Total Global Investment
Management and
Private Banking 163 151 8
-------------------
Associates Before
Transportation Loss
Provision (A) 424 394 8
Transportation Loss Provision (135) - NM
-------------------
Total Associates 289 394 (27)
Investment Activities 203 213 (5)
Corporate / Other (195) (201) 3
E-Citi (9) (14) 36
-------------------
Total Corporate / Other (204) (215) 5
-------------------
Core Income (B) 3,331 2,998 11
-------------------
Restructuring and Merger
Related Items -- After
Tax (C) (491) 17 NM
Cumulative Effect of
Accounting Changes (D) - - NM
-------------------
Net Income $ 2,840 $ 3,015 (6)
Diluted Earnings Per Share:
Core Income (E) $ 0.65 $ 0.58 12
Net Income 0.55 0.58 (5)
Citigroup Segment Income Year Ended %
-------------------
(In Millions of Dollars) 2000 1999 Change
Global Consumer
Citibanking North America $ 566 $ 398 42
Mortgage Banking 272 225 21
North America Cards 1,381 1,182 17
CitiFinancial 481 388 24
-------------------
Banking / Lending 2,700 2,193 23
-------------------
Travelers Life and Annuity 777 623 25
Primerica Financial Services 492 452 9
Personal Lines 311 279 11
-------------------
Insurance 1,580 1,354 17
-------------------
Western Europe 345 275 25
Japan 139 87 60
Emerging Markets
Consumer Banking 830 624 33
-------------------
Total International 1,314 986 33
-------------------
e-Consumer (202) (111) (82)
Other Consumer (98) (75) (31)
-------------------
Total Global Consumer 5,294 4,347 22
-------------------
Global Corporate and
Investment Bank
Salomon Smith Barney and
The Global
Relationship Bank 3,688 2,989 23
Emerging Markets
Corporate Banking 1,610 1,162 39
Commercial Lines Insurance 1,072 845 27
-------------------
Total Global Corporate and
Investment Bank 6,370 4,996 28
-------------------
Global Investment
Management and
Private Banking
SSB Citi Asset
Management Group 361 328 10
Global Private Bank 324 269 20
-------------------
Total Global Investment
Management and
Private Banking 685 597 15
-------------------
Associates Before
Transportation Loss
Provision (A) 1,516 1,402 8
Transportation Loss Provision (135) - NM
-------------------
Total Associates 1,381 1,402 (1)
Investment Activities 1,363 658 107
Corporate / Other (888) (605) (47)
E-Citi (65) (50) (30)
-------------------
Total Corporate / Other (953) (655) (45)
-------------------
Core Income (B) 14,140 11,345 25
-------------------
Restructuring and Merger
Related Items -- After
Tax (C) (621) 25 NM
Cumulative Effect of
Accounting Changes (D) - (127) NM
-------------------
Net Income $ 13,519 $ 11,243 20
Diluted Earnings Per Share:
Core Income (E) $ 2.74 $ 2.19 25
Net Income 2.62 2.17 21
(A) The transportation loss provision of $135 million (after-tax) and conforming accounting adjustments of $11 million (after-tax) in the 2000 fourth quarter and $163 million in the full year reduced core income earnings per share by $0.03 and $0.06, respectively. Conforming accounting adjustments of $14 million in the 1999 fourth quarter had no impact on core earnings per share and adjustments of $110 million in the 1999 full year reduced core income earnings per share by $0.02. (B) Core Income Before Transportation Loss Provision is $3.466 billion and $2.998 billion in the 2000 and 1999 fourth quarters, respectively, and $14.275 billion and $11.345 billion in the 2000 and 1999 full years, respectively. (C) Restructuring and merger-related items in the 2000 fourth quarter related to the acquisition of Associates First Capital Corporation include a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $340 million for business improvement and integration initiatives and $119 million for merger-related expenses. (D) Refers to adoption of Statement of Position "SOP" 97-3, "Accounting by Insurance and Other Enterprises for Insurance-Related Assessments" of ($135) million; adoption of SOP 98-7, "Deposit Accounting: Accounting for Insurance and Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Contracts That Do Not Transfer Insurance Risk" of $23 million; and the adoption of SOP 98-5, "Reporting on the Costs of Start-Up Start-up The earliest stage of a new business venture. Activities" of ($15) million.
Core Income
Supplemental Disclosure Fourth Quarter %
-------------------
2000 1999 Change
Global Corporate and
Investment Bank
Global Corporate Finance $ 829 $ 750 11
Transaction Services 130 58 124
Private Client 199 264 (25)
Commercial Lines Insurance 250 200 25
Other 6 12 (50)
-------------------
Total Global Corporate
and Investment Bank $ 1,414 $ 1,284 10
Emerging Markets Consumer
and Corporate Banking
Asia $ 270 $ 183 48
Latin America 245 217 13
Central and Eastern Europe,
Middle, East and Africa 137 81 69
Other 41 7 NM
-------------------
Total Emerging Markets $ 693 $ 488 42
Global Wealth Management
Private Client $ 199 264 (25)
SSB Citi Asset
Management Group 78 78 -
Global Private Bank 85 73 16
Global Consumer Investment,
Life Insurance and
Annuity Products 353 269 31
-------------------
Total Global Wealth Management $ 715 $ 684 5
Global Cards
North America $ 408 $ 324 26
International 115 91 26
Associates 127 83 53
-------------------
Total Global Cards $ 650 $ 498 31
Core Income
Supplemental Disclosure Year Ended %
-----------------
2000 1999 Change
Global Corporate and
Investment Bank
Global Corporate Finance $ 3,617 $ 3,019 20
Transaction Services 512 195 163
Private Client 1,070 918 17
Commercial Lines Insurance 1,072 845 27
Other 99 19 NM
-------------------
Total Global Corporate
and Investment Bank 6,370 4,996 28
Emerging Markets Consumer
and Corporate Banking
Asia $ 1,164 $ 821 42
Latin America 956 866 10
Central and Eastern Europe,
Middle, East and Africa 491 305 61
Other 63 (3) NM
-------------------
Total Emerging Markets $ 2,674 $ 1,989 34
Global Wealth Management
Private Client 1,070 918 17
SSB Citi Asset
Management Group 361 328 10
Global Private Bank 324 269 20
Global Consumer Investment,
Life Insurance and
Annuity Products 1,414 1,122 26
-------------------
Total Global Wealth
Management $ 3,169 $ 2,637 20
Global Cards
North America $ 1,381 $ 1,182 17
International 433 238 82
Associates 380 268 42
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Total Global Cards $ 2,194 $ 1,688 30
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