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CITICORP REPORTS CHANGES IN FINANCIAL STATEMENTS

 CITICORP REPORTS CHANGES IN FINANCIAL STATEMENTS
 NEW YORK, Aug. 14 /PRNewswire/ -- Citicorp, in a 10-Q being filed


today, reported two changes in its previously issued second-quarter financial statements resulting from a bank regulatory examination of the U.S. mortgage business, which was completed subsequent to the reporting of results.
 Reported earnings were affected by one of the changes, dealing with a valuation issue concerning mortgage-related assets (mortgage servicing rights and excess servicing receivables). Citicorp has restated 1992 second-quarter net income to $143 million (or $0.25 per common share) from the previously reported $171 million ($0.32 per common share).
 The company stated that management and its independent auditors agree that the previously reported earnings were consistent with Generally Accepted Accounting Principles, but the $28 million adjustment of net income reflects the regulators' preference rather than management's judgment on the level of future prepayments of mortgages.
 Citicorp's filing also noted that, as a result of the change in interest rate expectations that has occurred in the third quarter, this charge would have been necessary during that period under the company's existing valuation approach. The company also noted that it had previously made appropriate charges for mortgages which had actually prepaid and that U.S. mortgage-related assets already reflected assumptions related to prepayment risk.
 Separately, the company also changed the balance sheet classification of certain delinquent consumer mortgages to other real estate owned, which had no earnings effect because of previously established reserves. Citicorp transferred $149 million of mortgaged properties where circumstances indicate that the borrower has effectively relinquished control over the property although foreclosure has not occurred. This amount represented $203 million of mortgage loans less write-offs taken against existing reserves. The reclassification has reduced consumer loans at June 30, 1992, to $89.3 billion from the previously reported $89.5 billion.
 -0- 8/14/92
 /CONTACT: John M. Morris or Richard J. Howe of Citicorp, 212-559-4286/
 (CCI) CO: Citicorp ST: New York IN: FIN SU:


CK -- NY073 -- 0167 08/14/92 16:34 EDT
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Date:Aug 14, 1992
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