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 NEW YORK, Jan. 19 /PRNewswire/ -- Citicorp (NYSE: CCI) today reported 1992 net income of $722 million, or $1.35 per common share. The earnings compared with a net loss of $457 million in 1991. The 1992 earnings were accompanied by significant improvement in operating margin, capital ratios and reserves.
 For the fourth quarter of 1992, Citicorp reported net income of $280 million, or $0.53 per share, compared with a net loss of $133 million in the fourth quarter of 1991.
 Reed Notes Plan Achievements
 John S. Reed, chairman, stressed that these results come from the successful completion of the company's two-year Five Point Plan. The plan focused on 1991-1992, building capital and reserves, restoring earnings power through revenue/expense efforts, building on the strengths of Citicorp's core franchises while selling non-strategic operations and assets, and continuing to put the customer first.
 He said: "The plan's goals have been achieved. Citicorp's priorities for 1993 are to focus on balance sheet and earnings performance, on executional competence and cost discipline, on our business franchises, our customers and our people."
 During the past two years, Citicorp fulfilled plan objectives by adding $4.1 billion to total regulatory capital and $1.5 billion to consumer and commercial reserves while absorbing $2.8 billion of writeoffs and other credit costs related to North America commercial real estate. Total regulatory capital now exceeds $20 billion.
 A key to the plan's success was building the company's annual operating margin from $4.8 billion in 1990 to $7.1 billion in 1992, ahead of the $7 billion target. Of the more than $2 billion increase, almost $1.3 billion is attributable to continuing efforts to reduce the cost structure.
 By continuing to focus on its global business franchises, Citicorp increased its revenues (especially in its unique franchises in Asia, Latin America and the Middle East), despite widespread economic weakness and sales of certain non-strategic assets. Operating revenues for 1992 were $16.6 billion, compared with $15.9 billion for 1991 and $15.5 billion in 1990. The company also reduced operating expenses to $9.5 billion in 1992, compared with $10.1 billion in 1991 and $10.8 billion in 1990.
 Reed Comments on 1992
 Mr. Reed said: "We were able to generate modest revenue growth -- up 5 percent from 1991 -- in a year characterized by continued widespread economic sluggishness, and we reduced expenses by nearly $600 million or 6 percent. Commercial and consumer writeoffs were also affected by the economy and were somewhat higher in 1992 than in 1991, although they declined in the 1992 fourth quarter. In fact, commercial credit costs declined for the fourth straight quarter and, at $478 million, were sharply below their peak of $792 million in the 1991 fourth quarter. Another indication of improvement in our commercial and real estate portfolios was that both cash-basis loans and other real estate owned (OREO) declined in the quarter."
 He also estimated that regulatory assets declined $19 billion to $210 billion at the 1992 year-end, and the Tier 1 capital ratio increased to 4.9 percent from 3.73 percent at the 1991 year-end. The combined Tier 1 and Tier 2 capital ratio was approximately 9.6 percent at the end of 1992, up from 7.46 percent at the end of 1991.
 Fourth Quarter Results
 The fourth quarter operating margin was $1.8 billion. Revenues were $4.2 billion, down $31 million from the 1992 third quarter, which had benefited from strong foreign exchange and trading activities. Operating expenses in the quarter were $2.4 billion, an increase of $53 million from the previous quarter, primarily because of seasonal marketing efforts in the U.S. consumer franchise.
 Compared with the third quarter, credit costs declined in the fourth quarter, with decreased writeoffs in both the commercial and consumer businesses. Commercial credit costs declined to $478 million in the fourth quarter from $521 million in the third quarter. Consumer net writeoffs declined to $836 million in the 1992 fourth quarter from $860 million in the third quarter, with the improvement attributable to lower writeoffs related to in-substance foreclosure.
 The fourth quarter results included $139 million of net after-tax gains from the sale of non-strategic assets, compared with net after-tax gains of $159 million in the comparable 1991 quarter. Full-year asset sales, after tax, were $466 million in 1992 and $250 million in 1991. During the 1992 fourth quarter Citicorp also identified additional cost- saving initiatives that resulted in a restructuring charge of $67 million ($40 million after tax), with the resulting savings each year expected to exceed the amount of the charge. There was no comparable restructuring charge in the year-earlier quarter. Full-year restructuring charges, after tax, were $123 million in 1992 and $750 million in 1991.
 Citicorp continued to strengthen its balance sheet during the fourth quarter, adding $125 million to commercial reserves, which totaled over $2.2 billion at year-end 1992, and adding $77 million to consumer reserves, which totaled $1.3 billion at Dec. 31, 1992.
 The fourth quarter results reflect a more normal effective tax rate of approximately 41 percent, attributable principally to a lower level of taxes outside the United States. The effective tax rate for the first nine months of 1992 was 53 percent.
 Global Consumer
 Global Consumer net income, excluding after-tax restructuring charges, grew to over $1 billion in the year, up $379 million from 1991. Consumer businesses in Asia/Pacific and Latin America continued to account for about half the earnings, with the rest coming from Japan, Europe and North America. On a reported basis, net income in Global Consumer of $255 million in the 1992 fourth quarter brought full-year net income to $941 million, compared with $148 million in the same 1991 quarter and $530 million in the 1991 year.
 Revenues in the fourth quarter, adjusted for credit-card securitization, increased to $2.8 billion from $2.6 billion in the year- ago quarter. Expenses of $1.5 billion, excluding restructuring charges, decreased $45 million from the same 1991 quarter.
 Total consumer 90-day delinquencies on the balance sheet declined to approximately $4 billion at the 1992 year-end, compared with $4.4 billion at the end of the third quarter.
 Global Finance
 Global Finance net income, excluding after-tax restructuring charges, was $1.2 billion for the year, up $700 million from 1991. The 1992 earnings reflect continued momentum in developing economies and improvements, as credit costs receded, from the businesses in Japan, Europe and North America. On a reported basis, net income was $1.1 billion in 1992, compared with $293 million in 1991, and $294 million in the 1992 fourth quarter, up from $90 million in the same 1991 quarter.
 Full-year revenues of $5.5 billion (excluding net cost to carry) increased from $5.2 billion in 1991, despite a difficult economic environment. Expenses decreased 7 percent from 1991. Fourth quarter revenues of $1.4 billion declined by $82 million from the third quarter, which included exceptional levels of foreign exchange activity. Expenses for the quarter, excluding restructuring charges and net OREO costs, decreased to $769 million from $839 million in the same 1991 quarter.
 The credit provision for the fourth quarter included net writeoffs of $122 million, principally related to U.S.-based portfolios. Commercial cash-basis loans decreased by $216 million in the quarter and $1.3 billion in the year to $1.4 billion at year-end 1992. Although OREO increased by $346 million in the year, it declined in the fourth quarter by $129 million to $559 million at Dec. 31, 1992.
 Global Finance includes the commercial and financial institutions businesses worldwide other than commercial real estate in North America.
 North America Commercial Real Estate
 Commercial real estate activities in the United States and Canada reported a loss of $230 million in the fourth quarter, a $258 million improvement over the 1991 fourth quarter. The annual losses were $1.3 billion in 1992 and $905 million in 1991.
 Net writeoffs of $194 million in the quarter and $1.1 billion in the year
remained high but improved for the third straight quarter. The credit provision also reflected a reserve increase of $100 million in the quarter and $476 million in the year.
 Cash-basis loans of $2.7 billion at year-end were down from $2.9 billion at the end of the third quarter. The improvement in the quarter is primarily attributable to the transfer of cash-basis loans to renegotiated loan status following demonstrated performance consistent with the new terms. OREO assets decreased by $77 million in the quarter to $2.9 billion at year-end.
 Cross-Border Refinancing Portfolio
 The cross-border refinancing portfolio reported net income of $98 million in the fourth quarter and $402 million in the year. The full year 1991 results were net income of $311 million. The fourth quarter results include $50 million of cash interest payments made by the Government of Brazil in November concurrently with its issuance of Past Due Interest Bonds covering interest due and unpaid for 1989 and 1990. The face value of Citicorp's share of those bonds was $427 million.
 During the year, an agreement was signed with Argentina, and agreements with the Philippines and Nigeria became effective. In addition, the Brazilian Senate approved in December the term sheet on the settlement of Brazil's medium- and long-term commercial-bank debt and past due interest for 1991 and 1992. The agreement would have generally positive future effects on the company's earnings, but the timing and amounts cannot yet be determined. Following the Senate approval, the Government of Brazil increased the interest payments it is making from 30 percent to 50 percent of contractual amounts.
 During 1992 the company released $253 million from its allowance for credit losses related to the cross-border refinancing portfolio. There was a similar $150 million release in 1991. Total cross-border reserves stand at $300 million.
 At year-end 1992, Citicorp's improvement in its Tier 1 capital ratio -- to 4.9 percent from 4.27 percent at Sept. 30, 1992, and 3.73 percent at the 1991 year-end -- reflected the fourth quarter sale of conversion preferred stock, which added 32 basis points to Tier 1 capital in the quarter (and makes available another 22 basis points of future Tier 1 ratio improvement at current asset levels). The combined Tier 1 and Tier 2 capital ratio of approximately 9.6 percent at year-end 1992 compared with 8.54 percent at Sept. 30, 1992, and 7.46 percent at year- end 1991. Tier 1 capital increased by $1.7 billion in the year to $10.3 billion, and Citicorp's total Tier 1 and Tier 2 capital stood at $20.1 billion at 1992 year-end.
 During its two-year plan, Citicorp raised its Tier 1 capital ratio from 3.26 percent, and its total regulatory capital from $16 billion at year-end 1990. The increase in total capital during that period included preferred stock issuances of $2.6 billion, $1.1 billion of which was from the conversion preferred stock in the fourth quarter of 1992.
 Sales of non-strategic assets in the fourth quarter, which resulted in net pretax gains of $234 million, included an interest in Fomento Economico Mexicano, SA, Latin American equity investments acquired in exchange for debt, and 20 percent of The Student Loan Corporation.
 Total Staff
 Total employment was reduced to 81,000 at year-end 1992 from 86,000 a year earlier and 95,000 at year-end 1990. Citicorp had more than 3,500 offices in 93 countries at Dec. 31, 1992.
 A table giving financial highlights follows . Other tables detailing key financial data, an analysis of operating margin, pretax earnings, business results and credit indicators are available on request, along with financial statements. Further details concerning the financial results will be available in March in Citicorp's Form 10-K.
 Fourth Qtr. Pct Full Year Pct
 1992 1991 Chg. 992 1991 Chg.
 Before Cumulative Effect
 of Accounting Change.. $ 280 $ (133) N/M $ 722 $ ( 914) N/M
 After Cumulative Effect
 of Accounting Change.. $ 280 $ (133) N/M $ 722 $ (457) N/M
 Net Income (Loss) (A):
 Before Cumulative Effect
 of Accounting Change.. $ 0.53 $ (0.53) N/M $1.35 $(3.22) N/M
 After Cumulative Effect
 of Accounting Change.. $ 0.53 $ (0.53) N/M $1.35 $(1.89) N/M
 Common Equity .......... $ 21.74 $ 21.23 2
 Closing Stock Price
 at Quarter End......... $ 22.25 $ 10.38 N/M
 Return on Assets (in percent):
 Before Accounting Change 0.49 (0.24) - 0.32 (0.41) -
 After Accounting Change 0.49 (0.24) - 0.32 (0.21) -
 Return on Common Equity (in percent):
 Before Accounting Change 10.7 (9.9) - 6.5 (14.3) -
 After Accounting Change 10.7 (9.9) - 6.5 (7.9) -
 Tier 1 ................ $10,262 $ 8,540 20
 Tier 1 & 2 (B)........ $20,116 $17,080 18
 Tier 1 Ratio (B)....... 4.9 pct 3.7 pct -
 Tier 1 & 2 Ratio (B)... 9.6 pct 7.5 pct -
 Common Equity as a
 Pct of Total Assets.... 3.7 3.4 -
 Total Equity as a
 Pct of Total Assets.... 5.2 4.4 -
 Preferred............ $ 61 $ 52 17
 (A) Effective Jan. 1, 1991, Citicorp changed its accounting
 practice for investments of its venture capital subsidiaries.
 Under the new accounting practice, these investments are
 carried at fair value, with changes in fair value recognized
 in earnings.
 (B) Estimated.
 N/M Not meaningful as percentage exceeds 100 percent.
 -0- 1/19/93
 /CONTACT: press, John M. Morris, 212-559-4285, or investor, Frederick A. Roesch, 212-559-2715, both of Citicorp/

CO: Citicorp ST: New York IN: FIN SU: ERN

KD -- NY051 -- 6349 01/19/93 12:28 EST
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