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/C O R R E C T I O N -- CITICORP/

 /C O R R E C T I O N -- CITICORP/
 In NY011 -- Citicorp chairman reports on two-year plan -- moved


earlier today, we are informed that the end of the fourth graf as originally issued has been revised by the company.
 The complete, corrected release is repeated below:
 CITICORP CHAIRMAN REPORTS ON MIDPOINT OF TWO-YEAR PLAN
 NEW YORK, Jan. 13 /PRNewswire/ -- At a meeting of senior managers, John S. Reed, chairman of Citicorp (NYSE: CCI), said today: "Citicorp, at the midpoint of its two-year plan to improve operating margins and regain profitability, is making solid progress on all fronts."
 In particular, Reed said, there were significant improvements in the revenue/cost margin before credit costs because of a good start on expense reduction and despite limited revenue growth. He said the margin in 1991 will be about $5.8 billion, up about 20 percent from 1990 or $1 billion ($300 million from revenues and $700 million from expense savings). In the fourth quarter the margin rose to an annualized run rate of about $6 billion, up 25 percent from the 1990 fourth quarter.
 The company finished 1991 with better capital ratios and a stronger reserve position than at year-end 1990 even after higher costs associated with troubled credit portfolios.
 Reed, noting that Citicorp is aggressively recognizing loan problems through write-offs, confirmed expectations that high commercial credit costs continued in the fourth quarter and that consumer credit costs also remained high, reflecting the continued impact of the recession. But he noted that in the fourth quarter the gross increase in cash-basis loans was less than in the third quarter, and other indicators also demonstrate a stabilizing trend.
 Reed said that after taking about $650 million in commercial write- offs and write-downs and a net increase in total loan-loss reserves of slightly more than $200 million in the 1991 fourth quarter, Citicorp, in its detailed 1991 financial results to be issued on Jan. 21, will report losses in the ranges of $125-150 million in the quarter and $450-475 million in the year.
 At the meeting Reed announced management actions designed to further strengthen and energize the company's efforts to complete the 1991/1992 plan -- simplifying the management structure and empowering corporate- wide task forces to work on revenue, expense and structural initiatives. He commented that "1992 is likely to continue with a sluggish economy which demands an even more energetic response on our part."
 In addition, Reed said, "I have selected a new head for our corporate banking business in Japan, Europe and North America, whose appointment will be announced on Jan. 21. This individual is a senior banker of proven competence and global experience. He represents an important leadership addition as we improve our positioning with our corporate banking customers.
 "Citicorp has clearly been facing major business issues. Less clear, perhaps, is all that we are doing about them, and how well we are progressing.
 "The Citicorp global consumer and corporate banking franchises -- in North America, Europe, Asia, Latin America, and the Middle East and Africa -- are unmatched by any other bank in the world. The fundamental earnings power of our core business franchises is formidable -- enough so for Citicorp to cover real estate problems and resume capital building through profitability.
 "Citicorp will be profitable in 1992, and will continue to build its capital ratios while delivering outstanding service to its global customer base," Reed concluded.
 -0- 1/13/92 C NY011
 /CONTACT: John M. Morris of Citicorp, 212-559-4285/
 (CCI) CO: Citicorp ST: New York IN: FIN SU:


GK -- NY011A -- 9048 01/13/92 11:29 EST
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Publication:PR Newswire
Date:Jan 13, 1992
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