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CITICORP REPORTS RESULTS

 CITICORP REPORTS RESULTS
 NEW YORK, Jan. 21 /PRNewswire/ -- Citicorp (NYSE: CCI) today


reported its 1991 financial results, which in line with its estimate announced last week showed a net loss of $(133) million in the fourth quarter and $(457) million in the 1991 full year.
 The company reiterated its expectation that it would return to profitability in 1992, noting the progress in its plan to restore earnings momentum and capital strength through improvement in its internal measure of operating margin (the difference between its adjusted business revenues and adjusted operating expenses before credit costs). This margin (as detailed in tabular material) was increased by $1 billion to $5.8 billion in 1991.
 Citicorp's strong revenue base during a time of economic weakness demonstrated the lead market positions of its businesses around the world. Total revenues were $14.8 billion for the full year, compared with $14.6 billion in 1990.
 The company continued to reduce its operating expense base, despite commercial OREO costs of $285 million in the year. Operating expenses for 1991 were $10.3 billion ($10.1 billion adjusted for OREO costs), excluding restructuring charges of $750 million, compared with $10.8 billion, excluding restructuring charges of $300 million, in 1990.
 The net loss in the final quarter amounted to $(0.53) per common share and reflected $654 million of commercial net writeoffs and OREO write-downs and a net increase in total credit reserves of $206 million. These results compared with a net loss of $(382) million, or $(1.26) per share, in the 1990 fourth quarter, which included charges of $450 million for additions to consumer and commercial loan loss reserves and $300 million for expense reduction programs.
 The 1991 net loss, $(1.89) per share, resulted primarily from restructuring charges and high loan loss provisions during the year. Net income in 1990 was $458 million or $0.99 per share.
 These results included the cumulative effect of previously reported accounting changes, which amounted to $457 million in 1991 related to the venture capital investment portfolio and $140 million in 1990 for certain derivative products.
 Although U.S. real estate values further declined and economic recovery in the United States and other important markets had not started, commercial cash-basis loans, excluding the refinancing portfolio, declined $291 million during the quarter to $5.7 billion at year-end 1991.
 As expected, commercial credit costs continued at high levels as Citicorp aggressively recognized loan problems through writeoffs, OREO additions and OREO write-downs. Commercial net writeoffs and OREO write-downs of $654 million in the fourth quarter were primarily related to real estate. Commercial OREO increased by $433 million in the fourth quarter.
 The consumer loan portfolio performed consistently with management's expectations for the business during a prolonged recessionary environment, but showed indications of a stabilizing trend, although its credit costs continued at a high level in the quarter.
 At the end of 1991, Citicorp's Tier I capital ratio under 1992 guidelines was 3.70 percent, compared with 3.67 percent at Sept. 30, 1991 and 3.26 percent at the 1990 year-end. Citicorp's combined Tier I and Tier II capital ratio under 1992 guidelines was 740 percent, compared with 7.34 percent at Sept. 30, 1991 and 6.52 percent at the 1990 year-end. With Tier I capital showing a net increase of $541 million in the year, Citicorp's total Tier I and Tier II capital stood at $17.1 billion at 1991 year-end. Core Businesses
 Global Consumer
 Net income increased, despite lower revenues and high credit costs, to $196 million in the fourth quarter in Citicorp's business of providing financial services to consumers in nearly 40 countries. These results include $450 million of write-offs and $116 million in additional provision to consumer loan loss reserves.
 The consumer business demonstrated significant cost containment, with expenses (excluding restructuring charges) of $1,529 million in the 1991 fourth quarter, compared with $1,565 million in the 1991 third quarter and $1,741 million in the 1990 fourth quarter.
 Revenues of $2.4 billion (or $2.7 billion, adjusted for credit card securitization) in the 1991 fourth quarter slowed because of weak economic conditions and the effect on credit card purchase volumes of a slow holiday shopping season in the United States.
 Japan, Europe and North *America
 Corporate finance in Japan, Europe and North America, had strong quarterly results from foreign exchange, derivatives, trading and other financing transactions and benefited from cost controls throughout 1991.
 Revenues in a period of economic sluggishness declined 7 percent in 1991, while the JENA businesses continued to reduce operating expenses, by 9 percent to $2,489 million from $2,724 million in 1990.
 Reflecting the effects of credit costs, JENA had a loss of $(466) million in the fourth quarter. These credit costs included $641 million of net write-offs and OREO write-downs and an additional provision of $239 million, chiefly related to real estate. Credit costs and write- offs, primarily in real estate, are expected to remain high in 1992.
 International Banking and Finance
 Reflecting strong trading activity and good performances in most markets, International Banking and Finance revenues of $416 million in the quarter were sustained, despite continuing economic problems affecting business in Brazil. This compared with $410 million in the prior quarter and $340 million in the 1990 fourth quarter.
 Expenses increased slightly during the 1991 fourth quarter to $246 million, because of expansion in Eastern Europe and the broadening of product offerings in some markets. Expenses were $235 million in the previous quarter and $232 million in the 1990 fourth quarter. Net income declined to $75 million from $105 million in the 1991 third quarter and increased from $42 million in the 1990 fourth quarter. Other Items
 Cross Border
 Reflecting write-downs taken in the third quarter, improved values of debt assets and management's view that the overall economic progress in Latin America is sustainable, the cross-border loan loss reserve was reduced by $150 million in the quarter, with a corresponding increase in the loan loss reserve attributed to the commercial portfolio.
 The cross-border portfolio had net income of $*159 million in the fourth quarter, compared with net income of $129 million in the third quarter and a net loss of $(74) million in the 1990 fourth quarter.
 Capital
 Citicorp's plan to strengthen its capital base, through the reduction of non-strategic assets while continuing to serve its customers around the world by meeting their credit and other needs, resulted in after-tax gains of $159 million in the quarter. Citicorp sold 600,000 shares of its 2.4 million share holding in the Saudi American Bank, headquartered in Riyadh, and also completed the sale of a group of southern Italian branches. These two transactions had the equivalent effect of adding 12 basis points to Tier I capital.
 Total Staff
 Total employment was reduced to 86,000 at the 1991 year-end from 95,000 a year earlier.
 -0- 1/22/92
 /Tables detailing business results, write-offs, provisions and ratios follow, along with financial statements. Further details concerning the corporation's financial results will be available in Citicorp's Form 10-K to be published in March./
 /CONTACT: John M. Morris, Any Dates or Maria Rullo of Citicorp, 212-559-4286/
 /FIRST AND FINAL ADD -- TABULAR MATERIAL -- TO FOLLOW/
 (CCI) CO: Citicorp ST: New York IN: FIN SU: ERN


KD -- NY044 -- 1780 01/21/92 11:34 EST
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Date:Jan 21, 1992
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