<Page>
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 15, 2002
---------------------------
Citigroup Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-9924 52-1568099
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
399 Park Avenue, New York, New York 10043
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(Address of principal executive offices) (Zip Code)
(212) 559-1000
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(Registrant's telephone number, including area code)
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Citigroup Inc.
Current Report on Form 8-K
ITEM 5. OTHER EVENTS.
On October 15, 2002, Citigroup Inc. reported that third quarter GAAP net
income rose 23% from the comparable period last year to $3.92 billion. GAAP
net income included the results for Travelers Property Casualty prior to the
spin-off which was completed on August 20, 2002, as well as a $27 million
restructuring reserve release and $114 million in realized losses in the
company's insurance investment portfolio. Adjusted for these items,
Citigroup's core income for the third quarter was $3.79 billion, a 17%
increase over the third quarter of 2001. Core income per share, diluted,
increased 19% to $0.74. Revenues for the company increased 10% in the
quarter. Return on Common Equity was 19.4%.
For the nine months ended September 30, 2002, Citigroup's GAAP net income was
$12.85 billion, increasing 25% over the prior year period, with GAAP net income
per share, diluted, of $2.47. Core income of $11.21 billion reflected a 14%
increase, and core earnings per share, diluted, rose 14% to $2.16. Revenue for
the nine months ended September 30 increased 10% to $56.8 billion.
"We are exceptionally pleased with the performance of our businesses this
quarter, during what has been a period of challenging business conditions," said
Sanford I. Weill, Chairman and Chief Executive Officer of Citigroup. "We
generated double-digit income growth while continuing to strengthen our reserves
and capital position and reduce costs. Our revenues increased by 10% while our
expenses fell by 2%. Further, this strong performance took place against the
backdrop of macroeconomic challenges in Argentina and the political uncertainty
in Brazil, which negatively impacted our results, as well as exceptionally weak
equity markets, which have reduced the value of our proprietary investment
portfolio and led to further realized losses in the insurance portfolios. The
$323 million after tax gain that we realized on the sale of our building at 399
Park Avenue provided an offset to extremely poor results for our proprietary
investment activities.
"Our Global Consumer business has continued to extend its franchise with record
income, up 13% in the quarter. The 14% income growth achieved by our Global
Investment Management business reflects that business's success in overcoming
the impact of declining equity markets and outperforming its industry. The
Global Corporate and Investment Bank continues to lead the industry in market
share and fees, ranking #1 once again in Global Underwriting and #1 in Disclosed
Fees. Credit losses, however, remain high in the corporate bank and we have
taken steps this quarter to build our reserve for loan losses in response to
continued credit deterioration.
"Foremost in our minds has been restoring the trust of our customers and
shareholders, and we continue to focus our efforts on resolving the issues
facing our industry. The appointment of Chuck Prince, a talented and trusted
manager, as the head of our Global Corporate and Investment Bank, will help our
company to accelerate necessary changes in some of our business practices. I am
also very pleased that a distinguished member of our Board, Mike Masin, has
joined our management team as Chief Operating Officer. Mike will also head up
our newly-formed Business Practices Committee, spearheading a company-wide
effort to ensure that we are at the leading edge of raising business standards
in our industry.
"We have made progress towards the resolution of the current regulatory
scrutiny. During the quarter, we reached an agreement with the FTC regarding
consumer lending practices of the former Associates, and we also resolved with
the NASD issues relating to Winstar. We will continue to strive to have a
constructive dialogue with regulators," said Weill.
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Highlights of the quarter included:
o Revenues grew 10%, while expenses declined 2%. Expense reductions reflect a
continuing focus on reducing controllable expenses across the company,
including lower headcount and compensation levels in the Global Corporate
and Investment Bank, further operating and technology expense reductions in
Global Transaction Services, and improving operating leverage in Global
Investment Management. In addition, the discontinuance of amortization of
goodwill and certain intangibles in accordance with FAS 142 accounted for a
$94 million after tax reduction in expenses from the third quarter of 2001.
o Citigroup built its reserve for loan losses by $283 million in excess of
net credit losses in the third quarter, increasing the total reserve for
loan losses to $10.7 billion. Credit costs remained high in Citigroup's
Global Corporate and Investment Bank. Corporate cash basis loans increased
$252 million, or 6%, from the second quarter. The Global Consumer net
credit loss rate declined 16 basis points from the second quarter, to
3.18%, largely reflecting improvements in the company's CitiCards
portfolio. However, consumer delinquencies have increased slightly from the
second quarter.
o Citigroup resolved the FTC's lawsuit, regarding lending practices of the
former Associates prior to its acquisition by Citigroup, for $215 million,
which has largely been covered by existing reserves. Citigroup also reached
a settlement with the NASD relating to Winstar. Citigroup will recognize
the financial impact, if any, related to the resolution of other regulatory
matters when such impact can be reasonably estimated. Any impact is not
expected to be material to the company's financial condition.
o The company successfully completed the spin-off of Travelers Property
Casualty during the quarter, retaining an approximately 9.9% interest. The
historical results of Travelers Property Casualty are now being reported as
a discontinued operation.
o Citigroup's return on common equity for the third quarter was 19.4% and the
company's total equity, including trust preferred securities, equaled $86.9
billion at September 30, 2002. During the quarter, Citigroup repurchased
77.2 million common shares, for a total cost of $2.45 billion, bringing the
total number of shares repurchased in 2002 to 133.4 million. Common shares
outstanding declined 56 million from the second quarter to 5.06 billion. At
quarter end, the company had $5.75 billion available for future share
repurchases under existing authorizations.
o GLOBAL FINANCE Magazine named Citigroup "Best Corporate Bank" and "Best
Consumer Bank" in its annual survey of global banking institutions.
GLOBAL CONSUMER
Core income of $2.22 billion for the third quarter, up 13%. Highlights included:
o CARDS, which now serves 102 million accounts in 47 countries, increased
income by 21% to a record $849 million. Growth in North America Cards of
25% (which includes the card operations of Banamex) led the overall
increase, with 18% revenue growth which offset higher marketing
expenditures and a 35-basis point increase in the net credit loss rate over
last year. Loss rates improved 61 basis points from the second quarter.
Receivables grew by 5% to $111.1 billion. Also included in North America
results were a $206 million addition to the loan loss reserve established
in accordance with FFIEC guidance related to past due interest and late
fees on the on-balance sheet credit card receivables offset by net gains
recognized due to changes in estimates in the timing of revenue recognition
on securitizations. In the international markets, income rose 2%, with
strong growth in Japan and CEEMEA offsetting weakness in Argentina and Hong
Kong.
o CONSUMER FINANCE income rose 1%, as 9% income growth in North America was
offset by a decline in international income of 11%. Revenue growth of 4% in
North America was driven by a 7% volume increase, while expenses declined
8%. Loss rates in North America increased by 31 basis points over last
year, but improved by 31 basis points from the second quarter. In
international markets, strong income growth in Europe was offset by the
impact of higher losses in Japan as well as volume pressure resulting from
tighter underwriting standards.
o RETAIL BANKING income increased 19%, reflecting strong performance across
all regions, with the exception of Latin America due to the difficult
operating conditions in Argentina. In North America, income growth of 25%
included 27% growth at Citibanking, driven by higher deposit volumes, as
well as 24% income growth for Consumer Assets, which continued to
experience record levels of mortgage refinancings and substantial volume
growth in student loans. International markets performed well, with income
growth of 40% in Western Europe and 25% in CEEMEA.
2
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GLOBAL CORPORATE AND INVESTMENT BANK
Core income of $1.20 billion for the third quarter, down 7%. Highlights
included:
o CAPITAL MARKETS AND BANKING income fell 8%, as 4% revenue growth and
substantial expense reductions were offset by an increase in the provision
for credit losses. Growth in principal transactions revenue, led by strong
performance in fixed income, as well as higher commission levels, partly
offset a decline in investment banking revenues. Expenses were 10% lower
than the prior year quarter and 22% lower than the second quarter, largely
due to reductions in headcount and incentive compensation reflecting lower
year-to-date risk-adjusted revenues. The provision for credit losses was
$710 million, a $498 million increase over the third quarter of 2001, and
included writeoffs on telecom and Argentina-related loans, as well as a
$190 million addition to the loan loss reserve in excess of net credit
losses. Additionally, the quarter's results included an $88 million
reduction to revenues related to the writedown of Argentine securities.
o Income for TRANSACTION SERVICES, which includes Global Securities Services
and e-Business, rose 21%, as the business continued to significantly reduce
expenses. Expenses declined 10% from the prior year quarter, with sizable
reductions realized in the expense base, which were partly offset by higher
credit costs in Argentina. Business volumes were strong, including a 15%
increase in assets under custody, which helped to offset lower spreads and
a decline in global market values.
o PRIVATE CLIENT income declined 8% from the third quarter of 2001, as
revenues were negatively impacted by lower asset-based fees and margin
interest income, resulting from sharp equity market declines. As a result,
annualized revenue per Financial Consultant declined 3% to $435,000.
Expense reductions supported a pre-tax margin of 19%. Net flows were $7
billion in the quarter, and total client assets were $860 billion at
quarter end. Assets in SSB's Bank Deposit Program totaled $40 billion.
GLOBAL INVESTMENT MANAGEMENT
Core income of $435 million for the third quarter, up 14%. Highlights included:
o LIFE INSURANCE AND ANNUITIES income decreased 1%. Income for Travelers Life
and Annuity declined 4%, as lower net investment income was partly offset
by continued growth in business volumes. Business volumes remained strong
with a 5% increase in individual and group annuity account balances,
despite a drop in variable annuity account balances, and 30% growth in net
written life insurance premiums. International Insurance contributed $13
million, primarily reflecting the addition of Banamex and other operations
in Latin America.
o THE PRIVATE BANK generated record income for the third consecutive quarter,
with an increase of 26% to $115 million. Revenues rose 13%, reflecting
increased client trading activity, lending, and structured products
activity. Client business volumes increased 5% to $157 billion. Income
growth was led by a 43% increase in the U.S., as well as strong results in
Asia, including Japan.
o Income for ASSET MANAGEMENT, which includes Retirement Services, increased
32%, reflecting the addition of the asset management and retirement
services businesses of Banamex. Assets under management grew 7% to $452
billion, including the investment portfolio of Travelers Property Casualty,
which Citigroup manages on a third-party basis following the spin-off.
Citigroup Asset Management's market share of proprietary channels was 37%
in the Salomon Smith Barney Private Client Division, 72% in Primerica
Financial Services and 42% in Citibanking North America.
CITIGROUP INTERNATIONAL
Core income for Citigroup's international operations, which are fully reflected
in the product disclosures above, declined 16% from the prior year, largely due
to higher credit losses in the Global Corporate and Investment Bank and weaker
business performance in Latin America. Citigroup International contributed $972
million or 26% of the company's total core income in the third quarter.
o JAPAN'S income of $364 million represented a 27% increase, led by strong
results at Nikko Salomon Smith Barney, the consumer bank and the Private
Bank. Contributions from the recent consumer finance acquisitions in that
country also boosted results, and partly offset higher credit losses in
that business.
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o ASIA'S income increased 29% to $355 million, led by strong customer volume
growth in cards, retail banking and investment products, as well as
improvements in corporate banking from a weak prior year quarter.
o WESTERN EUROPE contributed $184 million in income, an 8% decline,
reflecting higher corporate loan losses and lower business volume. Consumer
results were strong, with income rising 37%, reflecting strong performance
from the company's consumer franchises in Germany and the U.K.
o CEEMEA'S income rose 19% to $175 million, led by 46% income growth for
consumer, reflecting continued expansion of cards and retail banking in the
region, and corporate income growth of 15%.
o LATIN AMERICA posted a loss of $106 million, reflecting a $98 million
reduction to revenues and a $241 million increase in the loan loss
provision related to the writedown of Argentine sovereign and corporate
instruments.
PROPRIETARY INVESTMENT ACTIVITIES AND CORPORATE/OTHER
Citigroup's Proprietary Investment Activities recorded a loss of $123 million in
the third quarter, which included a $323 million after tax gain on the sale of
399 Park Avenue. Results for the company's proprietary investment portfolios
were negatively impacted by significantly lower market values for publicly
traded securities, reflecting the continued decline in major market indexes, as
well as writedowns on private equity investments primarily in Argentina and
Brazil. Corporate/Other income was $56 million, reflecting lower funding costs
and realized gains from the sale of fixed income securities.
# # #
FORWARD-LOOKING STATEMENTS
Certain of the statements contained herein that are not historical facts are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act. The Company's actual results may differ materially from
those included in the forward-looking statements. Forward-looking statements are
typically identified by words or phrases such as "believe," "expect,"
"anticipate," "intend," "estimate," "target," "may increase," "may fluctuate,"
"may result in," "are projected," and similar expressions. These forward-looking
statements involve risks and uncertainties including, but not limited to, the
following: general economic conditions, including the performance of financial
markets and interest rates; the impact of the resolution of regulatory
matters on the Company's financial condition; and the Company's ability to
leverage the performance of its leading product franchises globally and build
upon a strong local presence in every region of the world to grow market share
and profitability.
# # #
A financial summary follows. Additional financial, statistical and
business-related information, as well as business and segment trends, is
included in the Financial Supplement.
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<Caption>
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CITIGROUP SEGMENT INCOME - PRODUCT VIEW THIRD QUARTER NINE MONTHS
------------------------- % ------------------------ %
(In Millions of Dollars, except per share data) 2002 2001 Change 2002 2001 Change
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GLOBAL CONSUMER
Cards ......................................... $ 849 $ 701 21 $ 2,172 $ 1,826 19
Consumer Finance .............................. 555 549 1 1,656 1,437 15
Retail Banking ................................ 867 731 19 2,331 1,870 25
Other ......................................... (49) (19) NM (116) (55) NM
---------------------- ----------------------
TOTAL GLOBAL CONSUMER .............................. 2,222 1,962 13 6,043 5,078 19
---------------------- ----------------------
GLOBAL CORPORATE AND INVESTMENT BANK
Capital Markets and Banking ................... 924 1,006 (8) 3,023 3,240 (7)
Private Client ................................ 168 182 (8) 569 584 (3)
Transaction Services .......................... 121 100 21 407 307 33
Other ......................................... (10) 7 NM (65) 30 NM
---------------------- ----------------------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK ......... 1,203 1,295 (7) 3,934 4,161 (5)
---------------------- ----------------------
GLOBAL INVESTMENT MANAGEMENT
Life Insurance and Annuities .................. 183 185 (1) 642 636 1
Private Bank .................................. 115 91 26 340 278 22
Asset Management .............................. 137 104 32 400 279 43
---------------------- ----------------------
TOTAL GLOBAL INVESTMENT MANAGEMENT ................. 435 380 14 1,382 1,193 16
---------------------- ----------------------
PROPRIETARY INVESTMENT ACTIVITIES .................. (123) (249) 51 (158) (111) (42)
CORPORATE / OTHER .................................. 56 (133) NM 12 (508) NM
---------------------- ----------------------
CORE INCOME ........................................ 3,793 3,255 17 11,213 9,813 14
---------------------- ----------------------
Restructuring-Related Items -- After-tax (A) ....... 27 (84) NM 24 (295) NM
Realized Insurance Investment Portfolio
Gains / (Losses), After-tax ...................... (114) 64 NM (218) 140 NM
---------------------- ----------------------
INCOME FROM CONTINUING OPERATIONS .................. 3,706 3,235 15 11,019 9,658 14
Discontinued Operations, After-tax (B) ............ 214 (58) NM 1,875 751 NM
Cumulative Effect of Accounting Changes (C) ........ - - - (47) (158) 70
---------------------- ----------------------
NET INCOME ......................................... $ 3,920 $ 3,177 23 $ 12,847 $ 10,251 25
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DILUTED EARNINGS PER SHARE:
NET INCOME (D) ..................................... $ 0.76 $ 0.61 25 $ 2.47 $ 1.98 25
CORE INCOME ........................................ $ 0.74 $ 0.62 19 $ 2.16 $ 1.90 14
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</Table>
(A) Restructuring-related items in the 2001 first quarter related principally
to severance and costs associated with the reduction of staff in the Global
Corporate and Investment Bank businesses, in the 2001 second quarter
related principally to severance and costs associated with the reduction of
staff primarily in the Global Corporate and Investment Bank and Global
Consumer businesses, in the 2001 third quarter primarily related to the
acquisition of Banamex and the integration of its operations, in the 2002
first quarter primarily related to severance and costs associated with the
reduction of staff in Argentina within the Latin America consumer and
corporate businesses, and in the 2002 second and third quarters primarily
related to reductions in the reserve due to changes in estimates.
(B) Travelers Property Casualty Corp. (TPC) (a wholly-owned subsidiary of
Citigroup on December 31, 2001) sold 231,000,000 shares of class A common
stock at $18.50 per share in an initial public offering (IPO) on March 27,
2002. Citigroup made a tax-free distribution to its stockholders of a
portion of its ownership interest in TPC on August 20, 2002. Discontinued
Operations includes the operations of TPC, the $1.270 billion ($1.158
billion after-tax) gain on the IPO and income taxes on the operations and
IPO gain. Citigroup remains a holder of approximately 9.9% of TPC's common
equity.
(C) Accounting Changes refer to the 2001 first quarter adoption of Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities", as amended (SFAS 133), the 2001 second
quarter adoption of EITF issue 99-20, "Recognition of Interest Income and
Impairment on Purchased and Retained Beneficial Interests in Securitized
Financial Assets" (EITF 99-20), and the 2002 first quarter adoption of the
remaining provisions of SFAS No. 142, "Goodwill and Other Intangible
Assets" (SFAS 142).
(D) Diluted EPS from Income from Continuing Operations was $0.72 and $2.12 in
the 2002 third quarter and nine months, compared to $0.62 and $1.87 in the
respective 2001 periods.
NM Not meaningful
Reclassified to conform to the current period's presentation.
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CITIGROUP CORE INCOME - REGIONAL VIEW THIRD QUARTER NINE MONTHS
---------------------- % --------------------- %
(In Millions of Dollars) 2002 2001 Change 2002 2001 Change
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<S> <C> <C> <C> <C> <C> <C>
NORTH AMERICA (EXCLUDING MEXICO) (1)
Consumer ...................................... $ 1,408 $ 1,238 14 $ 3,910 $ 3,308 18
Corporate ..................................... 877 794 10 2,559 2,277 12
Investment Management ......................... 319 306 4 1,028 988 4
---------------------- ---------------------
TOTAL NORTH AMERICA (EXCLUDING MEXICO) ............. 2,604 2,338 11 7,497 6,573 14
---------------------- ---------------------
MEXICO (2)
Consumer ...................................... 205 112 83 531 85 NM
Corporate ..................................... 26 4 NM 169 45 NM
Investment Management ......................... 53 19 NM 171 36 NM
---------------------- ---------------------
TOTAL MEXICO ....................................... 284 135 NM 871 166 NM
---------------------- ---------------------
WESTERN EUROPE
Consumer ...................................... 158 115 37 433 317 37
Corporate ..................................... 25 85 (71) 184 397 (54)
Investment Management ......................... 1 - - (3) 2 NM
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TOTAL WESTERN EUROPE ............................... 184 200 (8) 614 716 (14)
---------------------- ---------------------
JAPAN
Consumer ...................................... 265 259 2 759 706 8
Corporate ..................................... 87 19 NM 107 121 (12)
Investment Management ......................... 12 9 33 44 23 91
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TOTAL JAPAN ........................................ 364 287 27 910 850 7
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ASIA (EXCLUDING JAPAN)
Consumer ...................................... 176 157 12 467 443 5
Corporate ..................................... 153 101 51 513 454 13
Investment Management ......................... 26 18 44 81 59 37
---------------------- ---------------------
TOTAL ASIA (EXCLUDING JAPAN) ....................... 355 276 29 1,061 956 11
---------------------- ---------------------
LATIN AMERICA
Consumer ...................................... (25) 57 NM (143) 161 NM
Corporate ..................................... (100) 175 NM (5) 492 NM
Investment Management ......................... 19 22 (14) 47 63 (25)
---------------------- ---------------------
TOTAL LATIN AMERICA ................................ (106) 254 NM (101) 716 NM
---------------------- ---------------------
CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA
Consumer ...................................... 35 24 46 86 58 48
Corporate ..................................... 135 117 15 407 375 9
Investment Management ......................... 5 6 (17) 14 22 (36)
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TOTAL CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA 175 147 19 507 455 11
---------------------- ---------------------
PROPRIETARY INVESTMENT ACTIVITIES .................. (123) (249) 51 (158) (111) (42)
CORPORATE / OTHER .................................. 56 (133) NM 12 (508) NM
---------------------- ---------------------
CORE INCOME ........................................ $ 3,793 $ 3,255 17 $ 11,213 $ 9,813 14
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</Table>
(1) Excludes Proprietary Investment Activities and Corporate / Other.
(2) Includes the operations of Banamex from August 6, 2001 forward.
NM Not meaningful
Reclassified to conform to the current period's presentation.
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CITIGROUP SEGMENT ADJUSTED REVENUE - PRODUCT VIEW THIRD QUARTER NINE MONTHS
---------------------- % ---------------------- %
(In Millions of Dollars) 2002 2001 Change 2002 2001 Change
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GLOBAL CONSUMER
Cards ..................................... $ 4,689 $ 4,032 16 $ 13,179 $ 11,313 16
Consumer Finance .......................... 2,439 2,300 6 7,143 6,631 8
Retail Banking ............................ 3,317 3,042 9 9,868 8,118 22
Other ..................................... 45 82 (45) 141 226 (38)
---------- ---------- ---------- ----------
TOTAL GLOBAL CONSUMER ........................ 10,490 9,456 11 30,331 26,288 15
---------- ---------- ---------- ----------
GLOBAL CORPORATE AND INVESTMENT BANK
Capital Markets and Banking ............... 4,013 3,868 4 13,153 13,193 (0)
Private Client ............................ 1,399 1,450 (4) 4,399 4,507 (2)
Transaction Services ...................... 891 856 4 2,665 2,649 1
Other ..................................... (58) (60) 3 (261) (143) (83)
---------- ---------- ---------- ----------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK ... 6,245 6,114 2 19,956 20,206 (1)
---------- ---------- ---------- ----------
GLOBAL INVESTMENT MANAGEMENT
Life Insurance and Annuities .............. 1,073 972 10 3,291 3,156 4
Private Bank .............................. 412 366 13 1,262 1,134 11
Asset Management .......................... 518 546 (5) 1,559 1,553 0
---------- ---------- ---------- ----------
TOTAL GLOBAL INVESTMENT MANAGEMENT ........... 2,003 1,884 6 6,112 5,843 5
---------- ---------- ---------- ----------
PROPRIETARY INVESTMENT ACTIVITIES ............ (101) (360) 72 (78) (124) 37
CORPORATE / OTHER ............................ 137 (87) NM 506 (324) NM
---------- ---------- ---------- ----------
TOTAL ADJUSTED REVENUE ....................... $ 18,774 $ 17,007 10 $ 56,827 $ 51,889 10
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</Table>
NM Not meaningful
Reclassified to conform to the current period's presentation.
7
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CITIGROUP - QUARTERLY FINANCIAL DATA SUPPLEMENT
--------------------------------------------------------------------------------
PAGE NUMBER
CITIGROUP CONSOLIDATED
FINANCIAL SUMMARY 1
SEGMENT CORE INCOME:
Product View 2
Regional View 3
SEGMENT ADJUSTED NET REVENUES:
Product View 4
Regional View 5
SEGMENT DETAIL
GLOBAL CONSUMER:
CARDS
Income Summary and Key Indicators 6
Geographic Distribution 7
CitiCards and Diners Club N.A. 8
CONSUMER FINANCE
Income Summary and Key Indicators 9
Geographic Distribution 10
CitiFinancial 11
RETAIL BANKING
Income Summary and Key Indicators 12
Geographic and Business Distribution 13
GLOBAL CORPORATE AND INVESTMENT BANK:
Income Statement 14
Revenue Details 15
Capital Markets and Banking 16
Private Client 17
Transaction Services 18
GLOBAL INVESTMENT MANAGEMENT:
Life Insurance and Annuities 19
Private Bank 20
Asset Management 21
PROPRIETARY INVESTMENT ACTIVITIES 22
Insurance Investment Portfolio 23
CITIGROUP SUPPLEMENTAL DETAIL
Consolidated Statement of Income 24
Earnings Analysis - Managed Basis 25
Consolidated Statement of Financial Position 26
Consumer Loan Delinquency Amounts, Net Credit Losses and Ratios 27
Reserve for Loan Losses 28
Non-Performing Assets 29
--------------------------------------------------------------------------------
<Page>
CITIGROUP -- FINANCIAL SUMMARY
(In millions of dollars, except per share amounts)
CITIGROUP, THE PREEMINENT GLOBAL FINANCIAL SERVICES COMPANY WITH SOME 200
MILLION CUSTOMER ACCOUNTS IN MORE THAN 100 COUNTRIES, PROVIDES CONSUMERS,
CORPORATIONS, GOVERNMENTS AND INSTITUTIONS A COMPLETE RANGE OF FINANCIAL
PRODUCTS AND SERVICES.
<Table>
<Caption>
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1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
NET INCOME $ 3,538 $ 3,536 $ 3,177 $ 3,875 $ 4,843 $ 4,084
Discontinued Operations, After-tax (468) (341) 58 (304) (1,406) (255)
Cumulative Effect of Accounting Changes 42 116 - - 47 -
---------- ---------- ---------- ---------- ---------- ----------
INCOME FROM CONTINUING OPERATIONS 3,112 3,311 3,235 3,571 3,484 3,829
Restructuring Related Items, After-tax 80 131 84 (13) 29 (26)
Realized Insurance Investment Portfolio
(Gains) / Losses, After-tax (74) (2) (64) 46 (16) 120
---------- ---------- ---------- ---------- ---------- ----------
CORE INCOME $ 3,118 $ 3,440 $ 3,255 $ 3,604 $ 3,497 $ 3,923
========== ========== ========== ========== ========== ==========
BASIC EARNINGS PER SHARE:
NET INCOME $ 0.70 $ 0.70 $ 0.62 $ 0.75 $ 0.94 $ 0.80
========== ========== ========== ========== ========== ==========
INCOME FROM CONTINUING OPERATIONS $ 0.62 $ 0.66 $ 0.63 $ 0.69 $ 0.68 $ 0.75
========== ========== ========== ========== ========== ==========
CORE INCOME $ 0.62 $ 0.69 $ 0.64 $ 0.70 $ 0.68 $ 0.77
========== ========== ========== ========== ========== ==========
WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO BASIC EPS 4,984.7 4,979.6 5,060.8 5,101.8 5,110.5 5,096.7
========== ========== ========== ========== ========== ==========
PREFERRED DIVIDENDS - BASIC $ 28 $ 28 $ 28 $ 26 $ 21 $ 21
========== ========== ========== ========== ========== ==========
DILUTED EARNINGS PER SHARE:
NET INCOME $ 0.69 $ 0.69 $ 0.61 $ 0.74 $ 0.93 $ 0.78
========== ========== ========== ========== ========== ==========
INCOME FROM CONTINUING OPERATIONS $ 0.60 $ 0.64 $ 0.62 $ 0.68 $ 0.66 $ 0.73
========== ========== ========== ========== ========== ==========
CORE INCOME $ 0.60 $ 0.67 $ 0.62 $ 0.69 $ 0.67 $ 0.75
========== ========== ========== ========== ========== ==========
ADJUSTED WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO DILUTED EPS 5,110.0 5,100.0 5,169.0 5,209.1 5,209.8 5,185.8
========== ========== ========== ========== ========== ==========
PREFERRED DIVIDENDS - DILUTED $ 28 $ 28 $ 28 $ 26 $ 21 $ 21
========== ========== ========== ========== ========== ==========
COMMON SHARES OUTSTANDING, AT PERIOD END 5,033.7 5,026.1 5,144.2 5,148.7 5,165.4 5,118.1
========== ========== ========== ========== ========== ==========
TIER 1 CAPITAL RATIO 8.56% 8.82% 8.20% 8.42% 9.13% 9.20%
========== ========== ========== ========== ========== ==========
TOTAL CAPITAL RATIO 11.31% 11.49% 10.77% 10.92% 11.59% 11.75%
========== ========== ========== ========== ========== ==========
LEVERAGE RATIO 6.10% 6.17% 5.65% 5.64% 5.89% 5.93%
========== ========== ========== ========== ========== ==========
TOTAL ASSETS, AT PERIOD END (IN BILLIONS) $ 944.3 $ 953.4 $ 1,068.2 $ 1,051.5 $ 1,057.7 $ 1,083.3
========== ========== ========== ========== ========== ==========
STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS) $ 68.7 $ 70.5 $ 78.4 $ 81.2 $ 83.6 $ 85.7
========== ========== ========== ========== ========== ==========
STOCKHOLDERS' EQUITY AND TRUST SECURITIES, AT
PERIOD END (IN BILLIONS) $ 73.6 $ 75.1 $ 85.5 $ 88.4 $ 90.3 $ 92.5
========== ========== ========== ========== ========== ==========
BOOK VALUE PER SHARE, AT PERIOD END $ 13.29 $ 13.68 $ 14.90 $ 15.48 $ 15.92 $ 16.47
========== ========== ========== ========== ========== ==========
RETURN ON COMMON EQUITY (NET INCOME) 21.7% 20.9% 17.1% 19.5% 24.0% 19.5%
========== ========== ========== ========== ========== ==========
RETURN ON COMMON EQUITY (CORE INCOME)
- Restated to reflect 22.9% 24.3% 20.6% 21.0% 19.9% 20.7%
========== ========== ========== ========== ========== ==========
Travelers Property Casualty Corp. as a
Discontinued Operation
</Table>
<Table>
<Caption>
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
NET INCOME $ 3,920 23% $ 10,251 $ 12,847 25%
Discontinued Operations, After-tax (214) (751) (1,875)
Cumulative Effect of Accounting Changes - 158 47
---------- ---------- ----------
INCOME FROM CONTINUING OPERATIONS 3,706 15% 9,658 11,019 14%
Restructuring Related Items, After-tax (27) 295 (24)
Realized Insurance Investment Portfolio
(Gains) / Losses, After-tax 114 (140) 218
---------- ---------- ----------
CORE INCOME $ 3,793 17% $ 9,813 $ 11,213 14%
========== ========== ==========
BASIC EARNINGS PER SHARE:
NET INCOME $ 0.77 24% $ 2.03 $ 2.52 24%
========== ========== ==========
INCOME FROM CONTINUING OPERATIONS $ 0.73 16% $ 1.91 $ 2.16 13%
========== ========== ==========
CORE INCOME $ 0.75 17% $ 1.94 $ 2.19 13%
========== ========== ==========
WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO BASIC EPS 5,036.6 5,008.4 5,081.3
========== ========== ==========
PREFERRED DIVIDENDS - BASIC $ 21 $ 84 $ 63
========== ========== ==========
DILUTED EARNINGS PER SHARE:
NET INCOME $ 0.76 25% $ 1.98 $ 2.47 25%
========== ========== ==========
INCOME FROM CONTINUING OPERATIONS $ 0.72 16% $ 1.87 $ 2.12 13%
========== ========== ==========
CORE INCOME $ 0.74 19% $ 1.90 $ 2.16 14%
========== ========== ==========
ADJUSTED WEIGHTED AVERAGE COMMON SHARES
APPLICABLE TO DILUTED EPS 5,110.5 5,126.3 5,168.7
========== ========== ==========
PREFERRED DIVIDENDS - DILUTED $ 21 $ 84 $ 63
========== ========== ==========
COMMON SHARES OUTSTANDING, AT PERIOD END 5,062.0 5,144.2 5,062.0
========== ========== ==========
TIER 1 CAPITAL RATIO 9.1% * 8.20% 9.1% *
========== ========== ==========
TOTAL CAPITAL RATIO 11.9% * 10.77% 11.9% *
========== ========== ==========
LEVERAGE RATIO 5.7% * 5.65% 5.7% *
========== ========== ==========
TOTAL ASSETS, AT PERIOD END (IN BILLIONS) $ 1,031.6 * $ 1,068.2 $ 1,031.6 *
========== ========== ==========
STOCKHOLDERS' EQUITY, AT PERIOD END (IN BILLIONS) $ 80.8 * $ 78.4 $ 80.8 *
========== ========== ==========
STOCKHOLDERS' EQUITY AND TRUST SECURITIES, AT
PERIOD END (IN BILLIONS) $ 86.9 * $ 85.5 $ 86.9 *
========== ========== ==========
BOOK VALUE PER SHARE, AT PERIOD END $ 15.68 * $ 14.90 $ 15.68 *
========== ========== ==========
RETURN ON COMMON EQUITY (NET INCOME) 19.1% * 19.8% 20.9% *
========== ========== ==========
RETURN ON COMMON EQUITY (CORE INCOME)
- Restated to reflect 19.4% * 22.6% 19.9% *
========== ========== ==========
Travelers Property Casualty Corp. as a
Discontinued Operation
</Table>
Reclassified to conform to the current period's presentation.
* Preliminary
-------------------------------------------------------------------------------
Page 1
<Page>
CITIGROUP -- SEGMENT CORE INCOME
PRODUCT VIEW
(In millions of dollars)
<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
GLOBAL CONSUMER:
Cards $ 578 $ 547 $ 701 $ 721 $ 588 $ 735
Consumer Finance 397 491 549 488 536 565
Retail Banking 553 586 731 721 721 743
Other (23) (13) (19) (45) (33) (34)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL GLOBAL CONSUMER 1,505 1,611 1,962 1,885 1,812 2,009
---------- ---------- ---------- ---------- ---------- ----------
GLOBAL CORPORATE AND INVESTMENT BANK:
Capital Markets and Banking 1,201 1,033 1,006 768 1,029 1,070
Private Client 196 206 182 189 197 204
Transaction Services 91 116 100 113 82 204
Other (12) 35 7 24 (22) (33)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 1,476 1,390 1,295 1,094 1,286 1,445
---------- ---------- ---------- ---------- ---------- ----------
GLOBAL INVESTMENT MANAGEMENT:
Life Insurance and Annuities 215 236 185 200 204 255
Private Bank 95 92 91 94 112 113
Asset Management 91 84 104 125 126 137
---------- ---------- ---------- ---------- ---------- ----------
TOTAL GLOBAL INVESTMENT MANAGEMENT 401 412 380 419 442 505
---------- ---------- ---------- ---------- ---------- ----------
PROPRIETARY INVESTMENT ACTIVITIES (1) (68) 206 (249) 335 35 (70)
CORPORATE / OTHER (196) (179) (133) (129) (78) 34
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CORE INCOME $ 3,118 $ 3,440 $ 3,255 $ 3,604 $ 3,497 $ 3,923
------------------------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
GLOBAL CONSUMER:
Cards $ 849 21% 1,826 $ 2,172 19%
Consumer Finance 555 1% 1,437 1,656 15%
Retail Banking 867 19% 1,870 2,331 25%
Other (49) NM (55) (116) NM
---------- ----------------- ---------- ---------- ---------------------
TOTAL GLOBAL CONSUMER 2,222 13% 5,078 6,043 19%
---------- ----------------- ---------- ---------- ---------------------
GLOBAL CORPORATE AND INVESTMENT BANK:
Capital Markets and Banking 924 (8%) 3,240 3,023 (7%)
Private Client 168 (8%) 584 569 (3%)
Transaction Services 121 21% 307 407 33%
Other (10) NM 30 (65) NM
---------- ----------------- ---------- ---------- ---------------------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 1,203 (7%) 4,161 3,934 (5%)
---------- ----------------- ---------- ---------- ---------------------
GLOBAL INVESTMENT MANAGEMENT:
Life Insurance and Annuities 183 (1%) 636 642 1%
Private Bank 115 26% 278 340 22%
Asset Management 137 32% 279 400 43%
---------- ----------------- ---------- ---------- ---------------------
TOTAL GLOBAL INVESTMENT MANAGEMENT 435 14% 1,193 1,382 16%
---------- ----------------- ---------- ---------- ---------------------
PROPRIETARY INVESTMENT ACTIVITIES (1) (123) 51% (111) (158) (42%)
CORPORATE / OTHER 56 NM (508) 12 NM
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CORE INCOME $ 3,793 17% $ 9,813 $ 11,213 14%
------------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Excludes Realized Insurance Investment Portfolio Gains (Losses)
primarily from the Life Insurance and Annuities, and Primerica Financial
Services businesses.
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 2
<Page>
CITIGROUP -- SEGMENT CORE INCOME
REGIONAL VIEW
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
NORTH AMERICA (EXCLUDING MEXICO) (1)
Consumer $ 1,005 $ 1,065 $ 1,238 $ 1,275 $ 1,215 $ 1,287
Corporate 731 752 794 542 907 775
Investment Management 327 355 306 328 357 352
---------- ---------- ---------- ---------- ---------- ----------
TOTAL NORTH AMERICA (EXCLUDING MEXICO) 2,063 2,172 2,338 2,145 2,479 2,414
---------- ---------- ---------- ---------- ---------- ----------
MEXICO (2)
Consumer (14) (13) 112 110 145 181
Corporate 19 22 4 61 98 45
Investment Management 7 10 19 46 48 70
---------- ---------- ---------- ---------- ---------- ----------
TOTAL MEXICO 12 19 135 217 291 296
---------- ---------- ---------- ---------- ---------- ----------
WESTERN EUROPE
Consumer 104 98 115 130 134 141
Corporate 186 126 85 146 44 115
Investment Management 1 1 - 4 (7) 3
---------- ---------- ---------- ---------- ---------- ----------
TOTAL WESTERN EUROPE 291 225 200 280 171 259
---------- ---------- ---------- ---------- ---------- ----------
JAPAN
Consumer 205 242 259 257 240 254
Corporate 98 4 19 (21) 23 (3)
Investment Management 8 6 9 10 16 16
---------- ---------- ---------- ---------- ---------- ----------
TOTAL JAPAN 311 252 287 246 279 267
---------- ---------- ---------- ---------- ---------- ----------
ASIA (EXCLUDING JAPAN)
Consumer 142 144 157 165 145 146
Corporate 128 225 101 176 175 185
Investment Management 27 14 18 20 27 28
---------- ---------- ---------- ---------- ---------- ----------
TOTAL ASIA 297 383 276 361 347 359
---------- ---------- ---------- ---------- ---------- ----------
LATIN AMERICA
Consumer 49 55 57 (78) (92) (26)
Corporate 162 155 175 57 (92) 187
Investment Management 23 18 22 2 (3) 31
---------- ---------- ---------- ---------- ---------- ----------
TOTAL LATIN AMERICA 234 228 254 (19) (187) 192
---------- ---------- ---------- ---------- ---------- ----------
CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA
Consumer 14 20 24 26 25 26
Corporate 152 106 117 133 131 141
Investment Management 8 8 6 9 4 5
---------- ---------- ---------- ---------- ---------- ----------
TOTAL CENTRAL & EASTERN EUROPE, MIDDLE EAST
& AFRICA 174 134 147 168 160 172
---------- ---------- ---------- ---------- ---------- ----------
PROPRIETARY INVESTMENT ACTIVITIES (68) 206 (249) 335 35 (70)
CORPORATE / OTHER (196) (179) (133) (129) (78) 34
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CORE INCOME $ 3,118 $ 3,440 $ 3,255 $ 3,604 $ 3,497 $ 3,923
------------------------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
NORTH AMERICA (EXCLUDING MEXICO) (1)
Consumer $ 1,408 14% $ 3,308 $ 3,910 18%
Corporate 877 10% 2,277 2,559 12%
Investment Management 319 4% 988 1,028 4%
---------- ---------- --------
TOTAL NORTH AMERICA (EXCLUDING MEXICO) 2,604 11% 6,573 7,497 14%
---------- ---------- --------
MEXICO (2)
Consumer 205 83% 85 531 NM
Corporate 26 NM 45 169 NM
Investment Management 53 NM 36 171 NM
---------- ---------- --------
TOTAL MEXICO 284 NM 166 871 NM
---------- ---------- --------
WESTERN EUROPE
Consumer 158 37% 317 433 37%
Corporate 25 (71%) 397 184 (54%)
Investment Management 1 - 2 (3) NM
---------- ---------- --------
TOTAL WESTERN EUROPE 184 (8%) 716 614 (14%)
---------- ---------- --------
JAPAN
Consumer 265 2% 706 759 8%
Corporate 87 NM 121 107 (12%)
Investment Management 12 33% 23 44 91%
---------- ---------- --------
TOTAL JAPAN 364 27% 850 910 7%
---------- ---------- --------
ASIA (EXCLUDING JAPAN)
Consumer 176 12% 443 467 5%
Corporate 153 51% 454 513 13%
Investment Management 26 44% 59 81 37%
---------- ---------- ----------
TOTAL ASIA 355 29% 956 1,061 11%
---------- ---------- ----------
LATIN AMERICA
Consumer (25) NM 161 (143) NM
Corporate (100) NM 492 (5) NM
Investment Management 19 (14%) 63 47 (25%)
---------- ---------- ----------
TOTAL LATIN AMERICA (106) NM 716 (101) NM
---------- ---------- ----------
CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA
Consumer 35 46% 58 86 48%
Corporate 135 15% 375 407 9%
Investment Management 5 (17%) 22 14 (36%)
---------- ---------- ----------
TOTAL CENTRAL & EASTERN EUROPE, MIDDLE EAST
& AFRICA 175 19% 455 507 11%
---------- ---------- ----------
PROPRIETARY INVESTMENT ACTIVITIES (123) 51% (111) (158) (42%)
CORPORATE / OTHER 56 NM (508) 12 NM
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CORE INCOME $ 3,793 17% $ 9,813 $ 11,213 14%
------------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Excludes Proprietary Investment Activities and Corporate / Other.
(2) Includes the operations of Banamex from August 6, 2001 forward.
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 3
<Page>
CITIGROUP -- SEGMENT ADJUSTED NET REVENUES
PRODUCT VIEW
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
GLOBAL CONSUMER:
Cards $ 3,606 $ 3,675 $ 4,032 $ 4,195 $ 4,150 $ 4,340
Consumer Finance 2,153 2,178 2,300 2,237 2,298 2,406
Retail Banking 2,505 2,571 3,042 3,163 3,339 3,212
Other 27 117 82 50 31 65
---------- ---------- ---------- ---------- ---------- ---------
TOTAL GLOBAL CONSUMER 8,291 8,541 9,456 9,645 9,818 10,023
---------- ---------- ---------- ---------- ---------- ---------
GLOBAL CORPORATE AND INVESTMENT BANK:
Capital Markets and Banking 5,172 4,153 3,868 4,299 4,631 4,509
Private Client 1,549 1,508 1,450 1,433 1,477 1,523
Transaction Services 902 891 856 867 835 939
Other (65) (18) (60) (59) (99) (104)
---------- ---------- ---------- ---------- ---------- ---------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 7,558 6,534 6,114 6,540 6,844 6,867
---------- ---------- ---------- ---------- ---------- ---------
GLOBAL INVESTMENT MANAGEMENT:
Life Insurance and Annuities 1,170 1,014 972 1,223 1,002 1,216
Private Bank 392 376 366 408 423 427
Asset Management 516 491 546 532 519 522
---------- ---------- ---------- ---------- ---------- ---------
TOTAL GLOBAL INVESTMENT MANAGEMENT 2,078 1,881 1,884 2,163 1,944 2,165
---------- ---------- ---------- ---------- ---------- ---------
PROPRIETARY INVESTMENT ACTIVITIES (1) (74) 310 (360) 565 92 (69)
CORPORATE / OTHER (132) (105) (87) (10) 96 273
--------------------------------------------------------------------------------------------------------------------------
TOTAL ADJUSTED NET REVENUES $17,721 $17,161 $17,007 $18,903 $18,794 $19,259
--------------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
GLOBAL CONSUMER:
Cards $ 4,689 16% $ 11,313 $ 13,179 1%
Consumer Finance 2,439 6% 6,631 7,143 %
Retail Banking 3,317 9% 8,118 9,868 2%
Other 45 (45%) 226 141 (3%)
---------- ---------- ----------
TOTAL GLOBAL CONSUMER 10,490 11% 26,288 30,331 1%
---------- ---------- ----------
GLOBAL CORPORATE AND INVESTMENT BANK:
Capital Markets and Banking 4,013 4% 13,193 13,153
Private Client 1,399 (4%) 4,507 4,399 (%)
Transaction Services 891 4% 2,649 2,665 %
Other (58) 3% (143) (261) (8%)
---------- ---------- ----------
TOTAL GLOBAL CORPORATE AND INVESTMENT BANK 6,245 2% 20,206 19,956 (%)
---------- ---------- ----------
GLOBAL INVESTMENT MANAGEMENT:
Life Insurance and Annuities 1,073 10% 3,156 3,291 %
Private Bank 412 13% 1,134 1,262 1%
Asset Management 518 (5%) 1,553 1,559
---------- ---------- ----------
TOTAL GLOBAL INVESTMENT MANAGEMENT 2,003 6% 5,843 6,112 %
---------- ---------- ----------
PROPRIETARY INVESTMENT ACTIVITIES (1) (101) 72% (124) (78) 3%
CORPORATE / OTHER 137 NM (324) 506 N
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL ADJUSTED NET REVENUES $18,774 10% $ 51,889 $ 56,827 1%
-----------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Excludes Realized Insurance Investment Portfolio Gains (Losses)
primarily from the Life Insurance and Annuities, and Primerica Financial
Services businesses.
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 4
<Page>
CITIGROUP -- SEGMENT ADJUSTED NET REVENUES
REGIONAL VIEW
(In millions of dollars)
<Table>
<Caption>
---------------------------------------------------------------------------------------------------------------------- -------------
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
NORTH AMERICA (EXCLUDING MEXICO) (1)
Consumer $ 5,786 $ 6,049 $ 6,406 $ 6,577 $ 6,601 $ 6,817
Corporate 4,634 3,820 3,746 3,923 4,400 4,229
Investment Management 1,613 1,457 1,354 1,587 1,402 1,530
-------- -------- ------------ ------------ --------- ----------
TOTAL NORTH AMERICA (EXCLUDING MEXICO) 12,033 11,326 11,506 12,087 12,403 12,576
-------- -------- ------------ ------------ --------- ----------
MEXICO (2)
Consumer 57 72 532 750 753 773
Corporate 84 77 83 205 198 127
Investment Management 46 46 106 212 185 212
-------- -------- ------------ ------------ --------- ----------
TOTAL MEXICO 187 195 721 1,167 1,136 1,112
-------- -------- ------------ ------------ --------- ----------
WESTERN EUROPE
Consumer 564 540 583 607 612 671
Corporate 1,129 1,058 803 956 796 963
Investment Management 77 73 75 71 66 81
-------- -------- ------------ ------------ --------- ----------
TOTAL WESTERN EUROPE 1,770 1,671 1,461 1,634 1,474 1,715
-------- -------- ------------ ------------ --------- ----------
JAPAN
Consumer 835 837 880 878 817 939
Corporate 192 50 66 16 63 27
Investment Management 57 57 58 63 70 74
-------- -------- ------------ ------------ --------- ----------
TOTAL JAPAN 1,084 944 1,004 957 950 1,040
-------- -------- ------------ ------------ --------- ----------
ASIA (EXCLUDING JAPAN)
Consumer 548 545 559 571 557 580
Corporate 557 651 509 564 569 605
Investment Management 107 81 85 99 103 109
-------- -------- ------------ ------------ --------- ----------
TOTAL ASIA 1,212 1,277 1,153 1,234 1,229 1,294
-------- -------- ------------ ------------ --------- ----------
LATIN AMERICA
Consumer 366 357 350 114 322 76
Corporate 473 456 492 447 387 455
Investment Management 139 131 171 91 80 120
-------- -------- ------------ ------------ --------- ----------
TOTAL LATIN AMERICA 978 944 1,013 652 789 651
-------- -------- ------------ ------------ --------- ----------
CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA
Consumer 135 141 146 148 156 167
Corporate 489 422 415 429 431 461
Investment Management 39 36 35 40 38 39
-------- -------- ------------ ------------ --------- ----------
TOTAL CENTRAL & EASTERN EUROPE, MIDDLE
EAST & AFRICA 663 599 596 617 625 667
-------- -------- ------------ ------------ --------- ----------
PROPRIETARY INVESTMENT ACTIVITIES (74) 310 (360) 565 92 (69)
CORPORATE / OTHER (132) (105) (87) (10) 96 273
------------------------------------------------------------------------------------------------------------------------------
TOTAL ADJUSTED NET REVENUES $17,721 $17,161 $17,007 $18,903 $18,794 $19,259
------------------------------------------------------------------------------------------------------------------------------
</Table>
<Table>
<Caption>
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
NORTH AMERICA (EXCLUDING MEXICO) (1)
Consumer $ 7,097 11% $ 18,241 $ 20,515 12%
Corporate 3,788 1% 12,200 12,417 2%
Investment Management 1,465 8% 4,424 4,397 (1%)
-------- --------- ------------
TOTAL NORTH AMERICA (EXCLUDING MEXICO) 12,350 7% 34,865 37,329 7%
-------- --------- ------------
MEXICO (2)
Consumer 730 37% 661 2,256 NM
Corporate 109 31% 244 434 78%
Investment Management 161 52% 198 558 NM
-------- --------- ------------
TOTAL MEXICO 1,000 39% 1,103 3,248 NM
-------- --------- ------------
WESTERN EUROPE
Consumer 709 22% 1,687 1,992 18%
Corporate 856 7% 2,990 2,615 (13%)
Investment Management 80 7% 225 227 1%
-------- --------- ------------
TOTAL WESTERN EUROPE 1,645 13% 4,902 4,834 (1%)
-------- --------- ------------
JAPAN
Consumer 1,037 18% 2,552 2,793 9%
Corporate 170 NM 308 260 (16%)
Investment Management 67 16% 172 211 23%
-------- --------- ------------
TOTAL JAPAN 1,274 27% 3,032 3,264 8%
-------- --------- ------------
ASIA (EXCLUDING JAPAN)
Consumer 614 10% 1,652 1,751 6%
Corporate 567 11% 1,717 1,741 1%
Investment Management 98 15% 273 310 14%
-------- --------- ------------
TOTAL ASIA 1,279 11% 3,642 3,802 4%
-------- --------- ------------
LATIN AMERICA
Consumer 126 (64%) 1,073 524 (51%)
Corporate 307 (38%) 1,421 1,149 (19%)
Investment Management 97 (43%) 441 297 (33%)
-------- --------- ------------
TOTAL LATIN AMERICA 530 (48%) 2,935 1,970 (33%)
-------- --------- ------------
CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA
Consumer 177 21% 422 500 18%
Corporate 448 8% 1,326 1,340 1%
Investment Management 35 - 110 112 2%
-------- --------- ------------
TOTAL CENTRAL & EASTERN EUROPE, MIDDLE
EAST & AFRICA 660 11% 1,858 1,952 5%
-------- --------- ------------
PROPRIETARY INVESTMENT ACTIVITIES (101) 72% (124) (78) 37%
CORPORATE / OTHER 137 NM (324) 506 NM
----------------------------------------------------------------------------------------------------------------------------------
TOTAL ADJUSTED NET REVENUES $18,774 10% $51,889 $56,827 10%
----------------------------------------------------------------------------------------------------------------------------------
</Table>
(1) Excludes Proprietary Investment Activities and Corporate / Other.
(2) Includes the operations of Banamex from August 6, 2001 forward.
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 5
<Page>
GLOBAL CONSUMER
CARDS
(In millions of dollars)
<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ADJUSTED REVENUES, NET OF INTEREST EXPENSE (1) $ 3,606 $ 3,675 $ 4,032 $ 4,195 $ 4,150 $ 4,340
Adjusted Operating Expenses 1,368 1,326 1,375 1,414 1,335 1,405
Adjusted Provision for Credit Losses (1) 1,322 1,482 1,552 1,694 1,911 1,818
-------- ----------- --------- --------- ---------- -----------
Core Income Before Taxes 916 867 1,105 1,087 904 1,117
Income Taxes 338 320 404 366 316 382
-------- ----------- --------- --------- ---------- -----------
CORE INCOME $ 578 $ 547 $ 701 $ 721 $ 588 $ 735
======== =========== ========= ========= ========== ===========
Managed Average Assets (in billions of dollars) $ 117 $ 118 $ 122 $ 123 $ 123 $ 123
======== =========== ========= ========= ========== ===========
Return on Managed Assets 2.00% 1.86% 2.28% 2.33% 1.94% 2.40%
======== =========== ========= ========= ========== ===========
KEY INDICATORS
(in billions of dollars)
TOTAL EOP OPEN ACCOUNTS (IN MILLIONS):
North America 90.6 90.5 93.1 93.1 91.8 91.5
International 11.3 12.0 12.4 12.9 12.9 13.2
-------- ----------- --------- --------- ---------- -----------
Total 101.9 102.5 105.5 106.0 104.7 104.7
======== =========== ========= ========= ========== ===========
TOTAL SALES:
North America $ 54.8 $ 59.0 $ 58.5 $ 60.9 $ 54.9 $ 62.0
International 7.7 8.2 8.2 8.3 7.7 10.4
-------- ----------- --------- --------- ---------- -----------
Total $ 62.5 $ 67.2 $ 66.7 $ 69.2 $ 62.6 $ 72.4
======== =========== ========= ========= ========== ===========
AVERAGE MANAGED LOANS:
North America $ 102.2 $ 102.4 $ 105.9 $ 107.6 $ 107.6 $ 108.0
International 9.5 9.8 10.4 10.4 10.2 10.6
-------- ----------- --------- --------- ---------- -----------
Total $ 111.7 $ 112.2 $ 116.3 $ 118.0 $ 117.8 $ 118.6
======== =========== ========= ========= ========== ===========
MANAGED NET CREDIT LOSSES (IN MILLIONS OF
DOLLARS):
North America $ 1,217 $ 1,401 $ 1,448 $ 1,589 $ 1,681 $ 1,719
International 90 102 100 104 112 123
-------- ----------- --------- --------- ---------- -----------
Total $ 1,307 $ 1,503 $ 1,548 $ 1,693 $ 1,793 $ 1,842
======== =========== ========= ========= ========== ===========
END OF PERIOD MANAGED RECEIVABLES $ 111.9 $ 116.0 $ 119.5 $ 122.6 $ 118.9 $ 122.4
NET CREDIT LOSS RATIO 4.74% 5.37% 5.28% 5.69% 6.17% 6.23%
LOANS 90+DAYS PAST DUE:
In millions of dollars $ 2,001 $ 1,938 $ 2,119 $ 2,384 $ 2,488 $ 2,248
% 1.80% 1.68% 1.79% 1.96% 2.11% 1.85%
</Table>
<Table>
<Caption>
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
ADJUSTED REVENUES, NET OF INTEREST EXPENSE (1) $ 4,689 16% $ 11,313 $ 13,179 16%
Adjusted Operating Expenses 1,431 4% 4,069 4,171 3%
Adjusted Provision for Credit Losses (1) 1,941 25% 4,356 5,670 30%
--------- --------- ----------
Core Income Before Taxes 1,317 19% 2,888 3,338 16%
Income Taxes 468 16% 1,062 1,166 10%
--------- --------- ----------
CORE INCOME $ 849 21% $ 1,826 $ 2,172 19%
========= ========= ==========
Managed Average Assets (in billions of dollars) $ 129 6% $ 119 $ 125 5%
========= ========= ==========
Return on Managed Assets 2.61% 2.05% 2.32%
========= ========= ==========
KEY INDICATORS
(in billions of dollars)
TOTAL EOP OPEN ACCOUNTS (IN MILLIONS):
North America 88.2 (5%)
International 13.5 9%
---------
Total 101.7 (4%)
=========
TOTAL SALES:
North America 62.5 7% $ 172.3 $ 179.4 4%
International 11.3 38% 24.1 29.4 22%
--------- --------- ----------
Total 73.8 11% $ 196.4 $ 208.8 6%
========= ========= ==========
AVERAGE MANAGED LOANS:
North America $ 111.1 5% $ 103.5 $ 108.9 5%
International 10.9 5% 9.9 10.6 7%
--------- --------- ----------
Total $ 122.0 5% $ 113.4 $ 119.5 5%
========= ========= ==========
MANAGED NET CREDIT LOSSES (IN MILLIONS OF
DOLLARS):
North America $ 1,616 12% $ 4,066 $ 5,016 23%
International 151 51% 292 386 32%
--------- --------- ----------
Total $ 1,767 14% $ 4,358 $ 5,402 24%
========= ========= ==========
END OF PERIOD MANAGED RECEIVABLES $ 125.1 5%
NET CREDIT LOSS RATIO 5.75%
LOANS 90+DAYS PAST DUE:
In millions of dollars $ 2,305 9%
% 1.86%
</Table>
(1) On a managed basis.
Reclassified to conform to the current period's presentation.
Page 6
<Page>
GLOBAL CONSUMER
CARDS
GEOGRAPHIC DISTRIBUTION
(In millions of dollars)
<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
GEOGRAPHIC DISTRIBUTION
NORTH AMERICA
ADJUSTED REVENUES, NET OF INTEREST EXPENSE (1) $ 3,047 $ 3,130 $ 3,470 $ 3,738 $ 3,609 $ 3,768
Adjusted Operating Expenses 1,070 1,037 1,096 1,138 1,053 1,104
Adjusted Provision for Credit Losses (1) 1,229 1,379 1,449 1,589 1,681 1,719
--------- --------- ----------- --------- ------------ -----------
Core Income Before Taxes 748 714 925 1,011 875 945
Income Taxes 279 266 343 343 315 323
--------- --------- ----------- --------- ------------ -----------
CORE INCOME $ 469 $ 448 $ 582 $ 668 $ 560 $ 622
========= ========= =========== ========= ============ ===========
Managed Average Assets (in billions of dollars) $ 107 $ 107 $ 111 $ 112 $ 112 $ 112
========= ========= =========== ========= ============ ===========
Return on Managed Assets 1.78% 1.68% 2.08% 2.37% 2.03% 2.23%
========= ========= =========== ========= ============ ===========
INTERNATIONAL
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 559 $ 545 $ 562 $ 457 $ 541 $ 572
Adjusted Operating Expenses 298 289 279 276 282 301
Provision for Credit Losses 93 103 103 105 230 99
--------- --------- ----------- --------- ------------ -----------
Core Income Before Taxes 168 153 180 76 29 172
Income Taxes 59 54 61 23 1 59
--------- --------- ----------- --------- ------------ -----------
CORE INCOME $ 109 $ 99 $ 119 $ 53 $ 28 $ 113
========= ========= =========== ========= ============ ===========
Average Assets (in billions of dollars) $ 10 $ 11 $ 11 $ 11 $ 11 $ 11
========= ========= =========== ========= ============ ===========
Return on Assets 4.42% 3.61% 4.29% 1.91% 1.03% 4.12%
========= ========= =========== ========= ============ ===========
</Table>
<Table>
<Caption>
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
GEOGRAPHIC DISTRIBUTION
NORTH AMERICA
ADJUSTED REVENUES, NET OF INTEREST EXPENSE (1) $ 4,109 18% $ 9,647 $ 11,486 19%
Adjusted Operating Expenses 1,154 5% 3,203 3,311 3%
Adjusted Provision for Credit Losses (1) 1,822 26% 4,057 5,222 29%
-------- --------- ---------
Core Income Before Taxes 1,133 22% 2,387 2,953 24%
Income Taxes 405 18% 888 1,043 17%
-------- --------- ---------
CORE INCOME $ 728 25% $ 1,499 $ 1,910 27%
======== ========= =========
Managed Average Assets (in billions of dollars) $ 117 5% $ 108 $ 114 6%
======== ========= =========
Return on Managed Assets 2.47% 1.86% 2.24%
======== ========= =========
INTERNATIONAL
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 580 3% $ 1,666 $ 1,693 2%
Adjusted Operating Expenses 277 (1%) 866 860 (1%)
Provision for Credit Losses 119 16% 299 448 50%
-------- --------- ---------
Core Income Before Taxes 184 2% 501 385 (23%)
Income Taxes 63 3% 174 123 (29%)
-------- --------- ---------
CORE INCOME $ 121 2% $ 327 $ 262 (20%)
======== ========= =========
Average Assets (in billions of dollars) $ 12 - $ 11 $ 11 -
======== ========= =========
Return on Assets 4.00% 3.97% 3.18%
======== ========= =========
</Table>
(1) On a managed basis.
Reclassified to conform to the current period's presentation.
Page 7
<Page>
GLOBAL CONSUMER
CARDS
CITICARDS AND DINERS CLUB N.A. - SUPPLEMENTAL DATA
(In millions of dollars)
<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
CITICARDS AND DINERS CLUB N.A. :
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 3,012 $ 3,085 $ 3,340 $ 3,548 $ 3,438 $ 3,589
Adjusted Operating Expenses 1,052 1,014 1,017 1,035 966 1,029
Adjusted Provision for Credit Losses 1,221 1,371 1,434 1,567 1,659 1,705
-------- -------- --------- --------- -------- ---------
Core Income Before Taxes 739 700 889 946 813 855
Income Taxes 274 260 332 333 302 307
--------- --------- ---------- ---------- --------- ----------
CORE INCOME $ 465 $ 440 $ 557 $ 613 $ 511 $ 548
========= ========= ========== ========== ========= ==========
Managed Average Assets (in billions of dollars) $ 106 $ 106 $ 109 $ 110 $ 110 $ 110
========= ========= ========== ========== ========= ==========
Return on Managed Assets 1.78% 1.66% 2.03% 2.21% 1.88% 2.00%
========= ========= ========== ========== ========= ==========
CITICARDS (1):
KEY INDICATORS:
(in billions of dollars)
Net Interest Revenue (in millions of dollars) (2) $ 2,379 $ 2,421 $ 2,696 $ 2,904 $ 2,767 $ 2,717
% of Average Managed Loans 9.63% 9.65% 10.38% 11.04% 10.77% 10.41%
Risk Adjusted Revenue (in millions of dollars) (3) $ 1,716 $ 1,613 $ 1,838 $ 1,909 $ 1,705 $ 1,771
% of Average Managed Loans 6.95% 6.43% 7.08% 7.25% 6.64% 6.78%
Adjusted Operating Expenses as % of Average Managed
Loans 3.99% 3.78% 3.67% 3.56% 3.53% 3.72%
End of Period Managed Receivables $ 100.5 $ 103.9 $ 105.6 $ 108.9 $ 105.4 $ 108.2
Total EOP Open Accounts (in millions) 88.3 89.1 89.2 89.2 87.9 87.4
Total Sales $ 51.2 $ 55.6 $ 55.0 $ 56.7 $ 50.8 $ 57.7
END OF PERIOD LOANS:
On Balance Sheet $ 32.6 $ 32.6 $ 33.0 $ 34.2 $ 31.8 $ 35.2
Securitized 60.1 61.4 65.2 67.0 65.9 65.8
Held for Sale 7.0 9.0 6.5 6.5 6.5 6.5
--------- --------- ---------- ---------- --------- ----------
Total $ 99.7 $ 103.0 $ 104.7 $ 107.7 $ 104.2 $ 107.5
========= ========= ========== ========== ========= ==========
AVERAGE LOANS:
On Balance Sheet $ 34.7 $ 33.5 $ 33.5 $ 33.0 $ 30.9 $ 33.0
Securitized 58.5 59.7 61.3 64.9 66.8 65.2
Held for Sale 7.0 7.4 8.2 6.5 6.5 6.5
--------- --------- ---------- ---------- --------- ----------
Total $ 100.2 $ 100.6 $ 103.0 $ 104.4 $ 104.2 $ 104.7
========= ========= ========== ========== ========= ==========
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
On Balance Sheet $ 465 $ 481 $ 541 $ 615 $ 633 $ 615
Securitized 668 812 790 870 935 989
Held for Sale 63 90 92 69 78 92
--------- --------- ---------- ---------- --------- ----------
Total $ 1,196 $ 1,383 $ 1,423 $ 1,554 $ 1,646 $ 1,696
========= ========= ========== ========== ========= ==========
COINCIDENT NET CREDIT LOSS RATIO 4.84% 5.51% 5.48% 5.91% 6.41% 6.50%
12 MONTH LAGGED NET CREDIT LOSS RATIO 5.72% 6.29% 5.96% 6.23% 6.66% 6.76%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 1,836 $ 1,775 $ 1,908 $ 2,135 $ 2,219 $ 1,982
% 1.84% 1.72% 1.82% 1.98% 2.13% 1.84%
</Table>
<Table>
<Caption>
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
CITICARDS AND DINERS CLUB N.A. :
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 3,929 18% $ 9,437 $ 10,956 16%
Adjusted Operating Expenses 1,075 6% 3,083 3,070 -
Adjusted Provision for Credit Losses 1,807 26% 4,026 5,171 28%
--------- -------- ----------
Core Income Before Taxes 1,047 18% 2,328 2,715 17%
Income Taxes 388 17% 866 997 15%
---------- --------- -----------
CORE INCOME $ 659 18% $ 1,462 $ 1,718 18%
========== ========= ===========
Managed Average Assets (in billions of dollars) $ 113 4% $ 107 $ 111 4%
========== ========= ===========
Return on Managed Assets 2.31% 1.83% 2.07%
========== ========= ===========
CITICARDS (1):
KEY INDICATORS:
(in billions of dollars)
Net Interest Revenue (in millions of dollars) (2) $ 2,856 6% $ 7,496 $ 8,340 11%
% of Average Managed Loans 10.51% 9.64% 10.59%
Risk Adjusted Revenue (in millions of dollars) (3) $ 2,259 23% $ 5,167 $ 5,735 11%
% of Average Managed Loans 8.31% 6.69% 6.71%
Adjusted Operating Expenses as % of Average Managed
Loans 3.75%
End of Period Managed Receivables $ 110.8 5%
Total EOP Open Accounts (in millions) 84.2 (6%)
Total Sales $ 58.3 6%
END OF PERIOD LOANS:
On Balance Sheet $ 38.5 17%
Securitized 64.6 (1%)
Held for Sale 6.5 -
----------
Total $ 109.6 5%
==========
AVERAGE LOANS:
On Balance Sheet $ 36.8 10% $ 33.9 $ 33.6 (1%)
Securitized 64.6 5% 59.8 65.5 10%
Held for Sale 6.5 (21%) 7.5 6.5 (13%)
---------- --------- -----------
Total $ 107.9 5% $ 101.2 $ 105.6 4%
========== ========= ===========
NET CREDIT LOSSES (IN MILLIONS OF DOLLARS):
On Balance Sheet $ 634 17% $ 1,487 $ 1,882 27%
Securitized 874 11% 2,270 2,798 23%
Held for Sale 86 (7%) 245 256 4%
---------- --------- -----------
Total $ 1,594 12% $ 4,002 $ 4,936 23%
========== ========= ===========
COINCIDENT NET CREDIT LOSS RATIO 5.86%
12 MONTH LAGGED NET CREDIT LOSS RATIO 6.14%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 2,063 8%
% 1.88%
</Table>
(1) CitiCards is included within the North American Region of Cards and
excludes Diners Club N.A., Mexico and Puerto Rico.
(2) Includes delinquency and other risk-based charges.
(3) Risk Adjusted Revenue is adjusted revenues less managed net credit losses.
Reclassified to conform to the current period's presentation.
Page 8
<Page>
GLOBAL CONSUMER
CONSUMER FINANCE
(In millions of dollars)
<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 2,153 $ 2,178 $ 2,300 $ 2,237 $ 2,298 $ 2,406
Adjusted Operating Expenses 922 813 812 755 728 764
Provision for Benefits, Claims and Credit Losses 603 594 623 709 737 763
--------- -------- ---------- ----------- ----------- --------
Core Income Before Taxes 628 771 865 773 833 879
Income Taxes 231 280 316 285 297 314
--------- -------- ---------- ----------- ----------- --------
CORE INCOME $ 397 $ 491 $ 549 $ 488 $ 536 $ 565
========= ======== ========== =========== =========== ========
Average Assets (in billions of dollars) $ 82 $ 83 $ 85 $ 86 $ 87 $ 90
========= ======== ========== =========== =========== ========
Return on Assets 1.96% 2.37% 2.56% 2.25% 2.50% 2.52%
========= ======== ========== =========== =========== ========
KEY INDICATORS
AVERAGE LOANS (IN BILLIONS OF DOLLARS):
Real estate secured loans $ 43.1 $ 43.4 $ 44.5 $ 45.3 $ 45.5 $ 46.3
Personal loans 18.7 18.9 19.4 19.6 19.2 20.6
Auto 3.8 4.4 4.9 5.4 5.7 6.1
Sales finance and other 3.5 3.5 3.5 3.5 3.0 3.6
--------- -------- ---------- ----------- ----------- --------
Total $ 69.1 $ 70.2 $ 72.3 $ 73.8 $ 73.4 $ 76.6
========= ======== ========== =========== =========== ========
AVERAGE LOANS (IN BILLIONS OF DOLLARS):
North America $ 56.2 $ 57.0 $ 58.2 $ 59.2 $ 59.8 $ 60.9
International 12.9 13.2 14.1 14.6 13.6 15.7
--------- -------- ---------- ----------- ----------- --------
Total $ 69.1 $ 70.2 $ 72.3 $ 73.8 $ 73.4 $ 76.6
========= ======== ========== =========== =========== ========
AVERAGE YIELD
North America 14.05% 13.86% 13.53% 13.20% 13.18% 13.06%
International 27.25% 25.36% 24.83% 23.07% 22.43% 23.37%
Total 16.50% 16.02% 15.73% 15.14% 14.93% 15.15%
AVERAGE NET INTEREST MARGIN
North America 7.92% 8.18% 8.31% 8.36% 8.57% 8.50%
International 23.78% 22.10% 21.78% 20.84% 20.59% 21.92%
Total 10.87% 10.79% 10.93% 10.83% 10.84% 11.22%
NET CREDIT LOSS RATIO 2.99% 2.91% 2.94% 3.54% 3.63% 3.71%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 1,764 $ 1,943 $ 2,134 $ 2,243 $ 2,213 $ 2,131
% 2.54% 2.74% 2.89% 3.04% 2.97% 2.72%
NUMBER OF OFFICES:
North America 2,576 2,484 2,468 2,413 2,394 2,410
International 1,180 1,183 1,174 1,150 1,141 1,198
--------- -------- ---------- ----------- ----------- --------
Total 3,756 3,667 3,642 3,563 3,535 3,608
========= ======== ========== =========== =========== ========
</Table>
<Table>
<Caption>
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 2,439 6% $ 6,631 $ 7,143 8%
Adjusted Operating Expenses 744 (8%) 2,547 2,236 (12%)
Provision for Benefits, Claims and Credit Losses 829 33% 1,820 2,329 28%
-------- -------- --------
Core Income Before Taxes 866 - 2,264 2,578 14%
Income Taxes 311 (2%) 827 922 11%
-------- -------- --------
CORE INCOME $ 555 1% $ 1,437 $ 1,656 15%
======== ======== ========
Average Assets (in billions of dollars) $ 91 7% $ 83 $ 89 7%
======== ======== ========
Return on Assets 2.42% 2.31% 2.49%
======== ======== ========
KEY INDICATORS
AVERAGE LOANS (IN BILLIONS OF DOLLARS):
Real estate secured loans $ 47.0 6% $ 43.6 $ 46.3 6%
Personal loans 21.4 10% 19.0 20.4 7%
Auto 6.5 33% 4.4 6.1 39%
Sales finance and other 4.2 20% 3.5 3.6 3%
-------- -------- --------
Total $ 79.1 9% $ 70.5 $ 76.4 8%
======== ======== ========
AVERAGE LOANS (IN BILLIONS OF DOLLARS):
North America $ 62.3 7% $ 57.1 $ 61.0 7%
International 16.8 19% 13.4 15.4 15%
-------- -------- --------
Total $ 79.1 9% $ 70.5 $ 76.4 8%
======== ======== ========
AVERAGE YIELD
North America 12.76%
International 23.98%
Total 15.14%
AVERAGE NET INTEREST MARGIN
North America 8.17%
International 21.92%
Total 11.09%
NET CREDIT LOSS RATIO 3.83%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 2,101 (2%)
% 2.64%
NUMBER OF OFFICES:
North America 2,420 (2%)
International 1,182 1%
--------
Total 3,602 (1%)
========
</Table>
Reclassified to conform to the current period's presentation.
9
<Page>
GLOBAL CONSUMER
CONSUMER FINANCE
GEOGRAPHIC DISTRIBUTION
(In millions of dollars)
<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
GEOGRAPHIC DISTRIBUTION
NORTH AMERICA
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 1,366 $ 1,388 $ 1,476 $ 1,457 $ 1,539 $ 1,537
Adjusted Operating Expenses 593 523 515 470 503 475
Provision for Benefits, Claims and
Credit Losses 415 419 439 504 509 525
-------- ---------- ---------- --------- ---------- ----------
Core Income Before Taxes 358 446 522 483 527 537
Income Taxes 134 164 195 181 193 196
-------- ---------- ---------- --------- ---------- ----------
CORE INCOME $ 224 $ 282 $ 327 $ 302 $ 334 $ 341
======== ========== ========== ========= ========== ==========
Average Assets (in billions of dollars) $ 65 $ 67 $ 68 $ 68 $ 69 $ 70
======== ========== ========== ========= ========== ==========
Return on Assets 1.40% 1.69% 1.91% 1.76% 1.96% 1.95%
======== ========== ========== ========= ========== ==========
INTERNATIONAL
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 787 $ 790 $ 824 $ 780 $ 759 $ 869
Adjusted Operating Expenses 329 290 297 285 225 289
Provision for Benefits, Claims, and
Credit Losses 188 175 184 205 228 238
-------- ---------- ---------- --------- ---------- ---------
Core Income Before Taxes 270 325 343 290 306 342
Income Taxes 97 116 121 104 104 118
-------- ---------- ---------- --------- ---------- ---------
CORE INCOME $ 173 $ 209 $ 222 $ 186 $ 202 $ 224
======== ========== ========== ========= ========== =========
Average Assets (in billions of dollars) $ 17 $ 16 $ 17 $ 18 $ 18 $ 20
======== ========== ========== ========= ========== =========
Return on Assets 4.13% 5.24% 5.18% 4.10% 4.55% 4.49%
======== ========== ========== ========= ========== =========
</Table>
<Table>
<Caption>
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
GEOGRAPHIC DISTRIBUTION
NORTH AMERICA
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 1,536 4% $ 4,230 $ 4,612 9%
Adjusted Operating Expenses 474 (8%) 1,631 1,452 (11%)
Provision for Benefits, Claims and
Credit Losses 499 14% 1,273 1,533 20%
-------- -------- --------
Core Income Before Taxes 563 8% 1,326 1,627 23%
Income Taxes 206 6% 493 595 21%
-------- -------- --------
CORE INCOME $ 357 9% $ 833 $ 1,032 24%
======== ======== ========
Average Assets (in billions of dollars) $ 71 4% $ 67 $ 70 4%
======== ======== ========
Return on Assets 1.99% 1.66% 1.97%
======== ======== ========
INTERNATIONAL
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 903 10% $ 2,401 $ 2,531 5%
Adjusted Operating Expenses 270 (9%) 916 784 (14%)
Provision for Benefits, Claims, and
Credit Losses 330 79% 547 796 46%
-------- -------- --------
Core Income Before Taxes 303 (12%) 938 951 1%
Income Taxes 105 (13%) 334 327 (2%)
-------- -------- --------
CORE INCOME $ 198 (11%) $ 604 $ 624 3%
======== ======== ========
Average Assets (in billions of dollars) $ 20 18% $ 16 $ 19 19%
======== ======== ========
Return on Assets 3.93% 5.05% 4.39%
======== ======== ========
</Table>
Reclassified to conform to the current period's presentation.
10
<Page>
GLOBAL CONSUMER
CONSUMER FINANCE
CITIFINANCIAL - SUPPLEMENTAL DATA (1)
(In millions of dollars)
<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 1,330 $ 1,346 $ 1,430 $ 1,405 $ 1,479 $ 1,476
Adjusted Operating Expenses 569 502 492 443 475 447
Provision for Benefits, Claims and Credit Losses 408 412 431 495 500 516
-------- ---------- ---------- --------- -------- -----------
Core Income Before Taxes 353 432 507 467 504 513
Income Taxes 133 157 190 174 184 187
-------- ---------- ---------- --------- -------- -----------
CORE INCOME $ 220 $ 275 $ 317 $ 293 $ 320 $ 326
======== ========== ========== ========= ======== ===========
Average Assets (in billions of dollars) $ 64 $ 66 $ 67 $ 67 $ 68 $ 69
======== ========== ========== ========= ======== ===========
Return on Assets 1.39% 1.67% 1.88% 1.73% 1.91% 1.90%
======== ========== ========== ========= ======== ===========
KEY INDICATORS:
AVERAGE NET RECEIVABLES (IN BILLIONS OF DOLLARS):
Real estate secured loans - Other $ 34.5 $ 34.2 $ 34.1 $ 33.9 $ 33.3 $ 33.0
Real estate secured loans - PFS Sourced 5.4 6.1 6.8 7.5 8.2 9.1
Personal loans 9.7 9.7 9.6 9.6 9.6 9.5
Auto 3.5 4.1 4.6 5.1 5.4 5.8
Sales finance and other 2.6 2.4 2.6 2.6 2.7 2.9
-------- ---------- ---------- --------- -------- -----------
Total $ 55.7 $ 56.5 $ 57.7 $ 58.7 $ 59.2 $ 60.3
======== ========== ========== ========= ======== ===========
Number of offices 2,430 2,336 2,320 2,221 2,199 2,199
Average yield 13.87% 13.65% 13.30% 12.95% 13.07% 12.76%
Average net interest margin 7.76% 7.98% 8.09% 8.13% 8.41% 8.22%
Net credit loss ratio 2.50% 2.46% 2.45% 3.06% 2.97% 3.07%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 1,580 $ 1,751 $ 1,898 $ 1,991 $ 1,969 $ 1,816
% 2.82% 3.07% 3.25% 3.38% 3.30% 2.98%
</Table>
<Table>
<Caption>
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
ADJUSTED REVENUES, NET OF INTEREST EXPENSE $ 1,473 3% $ 4,106 $ 4,428 8%
Adjusted Operating Expenses 445 (10%) 1,563 1,367 (13%)
Provision for Benefits, Claims and Credit Losses 488 13% 1,251 1,504 20%
--------- --------- ---------
Core Income Before Taxes 540 7% 1,292 1,557 21%
Income Taxes 197 4% 480 568 18%
--------- --------- ---------
CORE INCOME $ 343 8% $ 812 $ 989 22%
========= ========= =========
Average Assets (in billions of dollars) $ 70 4% $ 66 $ 69 5%
========= ========= =========
Return on Assets 1.94% 1.64% 1.92%
========= ========= =========
KEY INDICATORS:
AVERAGE NET RECEIVABLES (IN BILLIONS OF DOLLARS):
Real estate secured loans - Other $ 32.9 (4%) $ 34.2 $ 33.2 (3%)
Real estate secured loans - PFS Sourced 9.5 40% 6.1 8.9 46%
Personal loans 9.8 2% 9.7 9.6 (1%)
Auto 6.2 35% 4.1 5.8 41%
Sales finance and other 3.2 23% 2.5 2.9 16%
--------- --------- ---------
Total $ 61.6 7% $ 56.6 $ 60.4 7%
========= ========= =========
Number of offices 2,207 (5%)
Average yield 12.47% 13.64% 12.76%
Average net interest margin 8.06% 7.97% 8.22%
Net credit loss ratio 2.73%
LOANS 90+ DAYS PAST DUE:
In millions of dollars $ 1,765 (7%)
% 2.83%
</Table>
(1) CitiFinancial is included within the North American Region of Consumer
Finance and excludes Mexico and Puerto Rico.
Reclassified to conform to the current period's presentation.
11
<Page>
GLOBAL CONSUMER
RETAIL BANKING
(In millions of dollars)
<Table>
<Caption>
-----------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 2,505 $ 2,571 $ 3,042 $ 3,163 $ 3,339 $ 3,212
Adjusted Operating Expenses 1,404 1,412 1,612 1,744 1,786 1,774
Provision for Benefits, Claims and Credit Losses 237 230 291 303 435 295
-------- ----------- ---------- --------- ---------- -----------
Core Income Before Taxes and Minority Interest 864 929 1,139 1,116 1,118 1,143
Income Taxes 306 336 402 386 387 391
Minority Interest, net of tax 5 7 6 9 10 9
-------- ----------- ---------- --------- ---------- -----------
CORE INCOME $ 553 $ 586 $ 731 $ 721 $ 721 $ 743
======== =========== ========== ========= ========== ===========
Average Assets (in billions of dollars) $ 119 $ 119 $ 152 $ 167 $ 173 $ 171
======== =========== ========== ========= ========== ===========
Return on Assets 1.88% 1.98% 1.91% 1.71% 1.69% 1.74%
======== =========== ========== ========= ========== ===========
KEY INDICATORS:
(in billions of dollars)
AVERAGE LOANS:
North America $ 53.8 $ 54.7 $ 63.8 $ 66.8 $ 68.9 $ 68.8
International 37.9 37.1 37.8 37.7 36.7 38.1
-------- ----------- ---------- --------- ---------- -----------
Average Loans (1) $ 91.7 $ 91.8 $ 101.6 $ 104.5 $ 105.6 $ 106.9
======== =========== ========== ========= ========== ===========
AVERAGE CUSTOMER DEPOSITS:
North America $ 53.0 $ 53.8 $ 80.7 $ 85.5 $ 89.4 $ 87.4
International 78.6 78.4 79.3 78.6 77.5 79.8
-------- ----------- ---------- --------- ---------- -----------
Total $ 131.6 $ 132.2 $ 160.0 $ 164.1 $ 166.9 $ 167.2
======== =========== ========== ========= ========== ===========
EOP ACCOUNTS (IN MILLIONS)
North America 11.8 11.9 22.3 21.8 21.9 22.5
International 18.3 18.5 18.8 18.9 19.0 19.3
-------- ----------- ---------- --------- ---------- -----------
Total 30.1 30.4 41.1 40.7 40.9 41.8
======== =========== ========== ========= ========== ===========
BRANCHES
North America 577 576 2,019 1,945 1,950 1,888
International 897 906 907 913 909 908
-------- ----------- ---------- --------- ---------- -----------
Total 1,474 1,482 2,926 2,858 2,859 2,796
======== =========== ========== ========= ========== ===========
ATM-ONLY LOCATIONS
North America 153 156 162 165 165 179
International 300 320 380 382 392 447
-------- ----------- ---------- --------- ---------- -----------
Total 453 476 542 547 557 626
======== =========== ========== ========= ========== ===========
PROPRIETARY ATMS
North America 2,331 2,320 6,554 6,574 6,652 6,706
International 2,059 2,101 2,178 2,195 2,197 2,242
-------- ----------- ---------- --------- ---------- -----------
Total 4,390 4,421 8,732 8,769 8,849 8,948
======== =========== ========== ========= ========== ===========
NET CREDIT LOSS RATIO 0.55% 0.53% 0.72% 0.78% 0.78% 0.80%
LOANS 90+DAYS PAST DUE:
In millions of dollars $ 2,270 $ 2,475 $ 3,316 $ 3,437 $ 3,481 $ 3,561
% 2.48% 2.71% 3.19% 3.30% 3.34% 3.31%
PRIMERICA FINANCIAL SERVICES:
Agents Licensed for Life Insurance 88,907 93,998 93,156 95,679 98,272 101,358
Life Insurance in Force
(in billions of dollars) $ 415.4 $ 422.9 $ 427.7 $ 434.8 $ 441.3 $ 452.6
Total Mutual Fund Sales
(in millions of dollars) $ 993.8 $ 868.3 $ 776.5 $ 770.2 $ 936.8 $ 964.0
Cash advanced on Loans
(in millions of dollars) (2) $ 694.5 $1,091.9 $ 1,006.1 $1,077.3 $ 1,253.8 $1,139.8
Variable Annuity Net Written
Premiums & Deposits (in millions
of dollars) $ 247.6 $ 237.1 $ 222.1 $ 217.2 $ 224.9 $ 249.5
</Table>
<Table>
<Caption>
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 3,317 9% $ 8,118 $ 9,868 22%
Adjusted Operating Expenses 1,720 7% 4,428 5,280 19%
Provision for Benefits, Claims and Credit Losses 260 (11%) 758 990 31%
----------- --------- ---------
Core Income Before Taxes and Minority Interest 1,337 17% 2,932 3,598 23%
Income Taxes 462 15% 1,044 1,240 19%
Minority Interest, net of tax 8 33% 18 27 50%
----------- --------- ---------
CORE INCOME $ 867 19% $ 1,870 $ 2,331 25%
=========== ========= =========
Average Assets (in billions of dollars) $ 166 9% $ 130 $ 170 31%
=========== ========= =========
Return on Assets 2.07% 1.92% 1.83%
=========== ========= =========
KEY INDICATORS:
(in billions of dollars)
AVERAGE LOANS:
North America $ 69.8 9% $ 57.4 $ 69.2 21%
International 38.3 1% 37.6 37.7 -
----------- --------- ---------
Average Loans (1) $ 108.1 6% $ 95.0 $ 106.9 13%
=========== ========= =========
AVERAGE CUSTOMER DEPOSITS:
North America $ 86.5 7% $ 62.5 $ 87.7 40%
International 79.3 - 78.8 78.9 -
----------- --------- ---------
Total $ 165.8 4% $ 141.3 $ 166.6 18%
=========== ========= =========
EOP ACCOUNTS (IN MILLIONS)
North America 22.4 -
International 18.6 (1%)
-----------
Total 41.0 -
===========
BRANCHES
North America 1,881 (7%)
International 890 (2%)
-----------
Total 2,771 (5%)
===========
ATM-ONLY LOCATIONS
North America 182 12%
International 466 23%
-----------
Total 648 20%
===========
PROPRIETARY ATMS
North America 6,760 3%
International 2,278 5%
-----------
Total 9,038 4%
===========
NET CREDIT LOSS RATIO 0.68%
LOANS 90+DAYS PAST DUE:
In millions of dollars $ 3,490
% 3.24%
PRIMERICA FINANCIAL SERVICES:
Agents Licensed for Life Insurance 105,567 13%
Life Insurance in Force
(in billions of dollars) $ 459.1 7%
Total Mutual Fund Sales
(in millions of dollars) $ 718.0 (8%)
Cash advanced on Loans
(in millions of dollars) (2) $ 1,105.4 10%
Variable Annuity Net Written
Premiums & Deposits (in millions
of dollars) $ 183.7 (17%)
</Table>
(1) Includes loans held for sale.
(2) Represents loan products marketed by PFS; the receivables are primarily
reflected in the assets of Consumer Finance.
Reclassified to conform to the current period's presentation.
12
<Page>
GLOBAL CONSUMER
RETAIL BANKING
GEOGRAPHIC AND BUSINESS DISTRIBUTION
(In millions of dollars)
<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
REVENUES:
NORTH AMERICA:
Citibanking North America $ 651 $ 695 $ 760 $ 766 $ 801 $ 810
Consumer Assets 239 265 257 261 299 311
Primerica Financial Services 490 497 493 499 512 522
Mexico 24 28 399 554 565 577
--------- -------- -------- ---------- ---------- ------------
TOTAL NORTH AMERICA RETAIL BANKING $ 1,404 $ 1,485 1,909 $ 2,080 $ 2,177 $ 2,220
--------- -------- -------- ---------- ---------- ------------
INTERNATIONAL:
Western Europe $ 390 $ 373 $ 398 $ 406 $ 415 $ 457
Japan 106 109 114 106 104 113
Asia (excluding Japan) 319 319 323 336 327 327
Latin America 205 200 210 148 224 (5)
CEEMEA 81 85 88 87 92 100
--------- -------- -------- ---------- ---------- ------------
TOTAL INTERNATIONAL RETAIL BANKING 1,101 1,086 1,133 1,083 1,162 992
--------- -------- -------- ---------- ---------- ------------
TOTAL RETAIL BANKING $ 2,505 $ 2,571 3,042 $ 3,163 $ 3,339 $ 3,212
========= ======== ======== ========== ========== ============
CORE INCOME:
NORTH AMERICA:
Citibanking North America $ 142 $ 144 $ 159 $ 181 $ 187 $ 196
Consumer Assets 75 86 90 92 93 106
Primerica Financial Services 125 128 125 134 128 137
Mexico (19) (22) 85 53 90 100
--------- -------- -------- ---------- ---------- ------------
TOTAL NORTH AMERICA RETAIL BANKING $ 323 $ 336 $ 459 $ 460 $ 498 $ 539
--------- -------- -------- ---------- ---------- ------------
INTERNATIONAL:
Western Europe $ 70 $ 69 $ 78 $ 88 $ 93 $ 106
Japan 31 34 38 35 33 37
Asia (excluding Japan) 99 104 105 112 104 108
Latin America 22 30 35 9 (19) (60)
CEEMEA 8 13 16 17 12 13
--------- -------- -------- ---------- ---------- ------------
TOTAL INTERNATIONAL RETAIL BANKING 230 250 272 261 223 204
--------- -------- -------- ---------- ---------- ------------
TOTAL RETAIL BANKING $ 553 $ 586 $ 731 $ 721 $ 721 $ 743
========= ======== ======== ========== ========== ============
</Table>
<Table>
<Caption>
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
REVENUES:
NORTH AMERICA:
Citibanking North America $ 791 4% $ 2,106 $ 2,402 14%
Consumer Assets 309 20% 761 919 21%
Primerica Financial Services 505 2% 1,480 1,539 4%
Mexico 530 33% 451 1,672 NM
-------- ---------- ----------
TOTAL NORTH AMERICA RETAIL BANKING $ 2,135 12% $ 4,798 $ 6,532 36%
-------- ---------- ----------
INTERNATIONAL:
Western Europe $ 483 21% $ 1,161 $ 1,355 17%
Japan 170 49% 329 387 18%
Asia (excluding Japan) 361 12% 961 1,015 6%
Latin America 61 (71%) 615 280 (54%)
CEEMEA 107 22% 254 299 18%
-------- ---------- ----------
TOTAL INTERNATIONAL RETAIL BANKING 1,182 4% 3,320 3,336 0%
-------- ---------- ----------
TOTAL RETAIL BANKING $ 3,317 9% $ 8,118 $ 9,868 22%
======== ========== ==========
CORE INCOME:
NORTH AMERICA:
Citibanking North America $ 202 27% $ 445 $ 585 31%
Consumer Assets 112 24% 251 311 24%
Primerica Financial Services 131 5% 378 396 5%
Mexico 130 53% 44 320 NM
-------- ---------- ----------
TOTAL NORTH AMERICA RETAIL BANKING $ 575 25% $ 1,118 $ 1,612 44%
-------- ---------- ----------
INTERNATIONAL:
Western Europe $ 109 40% $ 217 $ 308 42%
Japan 73 92% 103 143 39%
Asia (excluding Japan) 128 22% 308 340 10%
Latin America (38) NM 87 (117) NM
CEEMEA 20 25% 37 45 22%
-------- ---------- ----------
TOTAL INTERNATIONAL RETAIL BANKING 292 7% 752 719 (4%)
-------- ---------- ----------
TOTAL RETAIL BANKING $ 867 19% $ 1,870 $ 2,331 25%
======== ========== ==========
</Table>
NM Not meaningful
Reclassified to conform to the current period's presentation.
13
<Page>
GLOBAL CORPORATE AND INVESTMENT BANK
INCOME STATEMENT
(In millions of dollars)
<Table>
<Caption>
------------------------------------------------------------------------------------------------------------------------------------
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
REVENUES:
Commissions and Fees $ 1,402 $ 1,320 $ 1,218 $ 1,260 $ 1,363 $ 1,394
Asset Management and Administration Fees 704 682 695 636 675 699
Investment Banking 1,239 1,138 929 1,210 1,043 1,117
Principal Transactions 2,077 1,268 812 684 1,360 1,134
Other Income 290 139 445 138 (8) 141
-------- ---------- --------- ---------- --------- ----------
Total Non-Interest Revenues 5,712 4,547 4,099 3,928 4,433 4,485
Net Interest and Dividends 1,846 1,987 2,015 2,612 2,411 2,382
-------- ---------- --------- ---------- --------- ----------
Total Revenues, Net of Interest Expense 7,558 6,534 6,114 6,540 6,844 6,867
-------- ---------- --------- ---------- --------- ----------
Non-Interest Expenses:
Compensation and Benefits 3,333 2,748 2,518 2,754 3,014 2,869
Other Operating and Administrative Expenses 1,630 1,339 1,350 1,419 1,180 1,319
-------- ---------- --------- ---------- --------- ----------
Total Non-Interest Expenses 4,963 4,087 3,868 4,173 4,194 4,188
-------- ---------- --------- ---------- --------- ----------
Provision for Credit Losses 277 288 217 682 680 460
-------- ---------- --------- ---------- --------- ----------
Core Income Before Taxes and Minority Interest 2,318 2,159 2,029 1,685 1,970 2,219
Income Taxes and Minority Interest, Net of Tax 842 769 734 591 684 774
-------- ---------- --------- ---------- --------- ----------
CORE INCOME $ 1,476 $ 1,390 $ 1,295 $ 1,094 $ 1,286 $ 1,445
======== ========== ========= ========== ========= ==========
Pre-tax Profit Margin 30.7% 33.0% 33.2% 25.8% 28.8% 32.3%
Non-Compensation Expenses as a Percent of
Net Revenues 21.6% 20.5% 22.1% 21.7% 17.2% 19.2%
Compensation and Benefits Expenses as a Percent of
Net Revenues 44.1% 42.1% 41.2% 42.1% 44.0% 41.8%
Compensation and Benefits Expenses as a Percent of
Risk Adjusted Revenues (1) 45.8% 44.0% 42.7% 47.0% 48.9% 44.8%
</Table>
<Table>
<Caption>
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
REVENUES:
Commissions and Fees $ 1,358 11% $ 3,940 $ 4,115 4%
Asset Management and Administration Fees 622 (11%) 2,081 1,996 (4%)
Investment Banking 899 (3%) 3,306 3,059 (7%)
Principal Transactions 1,046 29% 4,157 3,540 (15%)
Other Income 254 (43%) 874 387 (56%)
-------- --------- ----------
Total Non-Interest Revenues 4,179 2% 14,358 13,097 (9%)
Net Interest and Dividends 2,066 3% 5,848 6,859 17%
-------- --------- ----------
Total Revenues, Net of Interest Expense 6,245 2% 20,206 19,956 (1%)
-------- --------- ----------
Non-Interest Expenses:
Compensation and Benefits 2,290 (9%) 8,599 8,173 (5%)
Other Operating and Administrative Expenses 1,303 (3%) 4,319 3,802 (12%)
-------- --------- ----------
Total Non-Interest Expenses 3,593 (7%) 12,918 11,975 (7%)
-------- --------- ----------
Provision for Credit Losses 798 NM 782 1,938 NM
-------- --------- ----------
Core Income Before Taxes and Minority Interest 1,854 (9%) 6,506 6,043 (7%)
Income Taxes and Minority Interest, Net of Tax 651 (11%) 2,345 2,109 (10%)
-------- --------- ----------
CORE INCOME $ 1,203 (7%) $ 4,161 $ 3,934 (5%)
======== ========= ==========
Pre-tax Profit Margin 29.7% 32.2% 30.3%
Non-Compensation Expenses as a Percent of
Net Revenues 20.9% 21.4% 19.1%
Compensation and Benefits Expenses as a Percent of
Net Revenues 36.7% 42.6% 41.0%
Compensation and Benefits Expenses as a Percent of
Risk Adjusted Revenues (1) 42.0% 44.3% 45.4%
</Table>
(1) Risk Adjusted Revenues represent Revenues net of Interest Expense less
Provision for Credit Losses.
NM Not meaningful
Reclassified to conform to the
current period's presentation.
14
<Page>
GLOBAL CORPORATE AND INVESTMENT BANK [CITIGROUP LOGO]
REVENUE DETAILS
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT BANKING REVENUE:
Debt Underwriting $ 433 $ 409 $ 329 $ 355 $ 349 $ 359
Equity Underwriting 224 247 193 232 342 308
Advisory and Other Fees 582 482 407 623 352 450
---------- ---------- ---------- ---------- ---------- ----------
Total Investment Banking Revenues $ 1,239 $ 1,138 $ 929 $ 1,210 $ 1,043 $ 1,117
========== ========== ========== ========== ========== ==========
TRADING RELATED REVENUE BY PRODUCT
Fixed Income $ 1,299 $ 969 $ 800 $ 1,016 $ 1,398 $ 1,157
Equities 472 214 101 95 147 180
Foreign Exchange 365 399 295 458 467 536
All Other 64 47 38 48 77 53
---------- ---------- ---------- ---------- ---------- ----------
Total Trading Related Revenue $ 2,200 $ 1,629 $ 1,234 $ 1,617 $ 2,089 $ 1,926
========== ========== ========== ========== ========== ==========
TRADING RELATED REVENUE BY INCOME STATEMENT LINE
Principal Transactions $ 2,077 $ 1,268 $ 812 $ 684 $ 1,360 $ 1,134
Net Interest Revenue 123 361 422 933 729 792
---------- ---------- ---------- ---------- ---------- ----------
Total Trading Related Revenue $ 2,200 $ 1,629 $ 1,234 $ 1,617 $ 2,089 $ 1,926
========== ========== ========== ========== ========== ==========
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT BANKING REVENUE:
Debt Underwriting
Equity Underwriting $ 270 (18%) $ 1,171 $ 978 (16%)
Advisory and Other Fees 195 1% 664 845 27%
434 7% 1,471 1,236 (16%)
---------- ---------- ----------
Total Investment Banking Revenues $ 899 (3%) $ 3,306 $ 3,059 (7%)
========== ========== ==========
TRADING RELATED REVENUE BY PRODUCT
Fixed Income $ 1,089 36% $ 3,068 $ 3,644 19%
Equities (6) NM 787 321 (59%)
Foreign Exchange 398 35% 1,059 1,401 32%
All Other 75 97% 149 205 38%
---------- ---------- ----------
Total Trading Related Revenue $ 1,556 26% $ 5,063 $ 5,571 10%
========== ========== ==========
TRADING RELATED REVENUE BY INCOME STATEMENT LINE
Principal Transactions $ 1,046 29% $ 4,157 $ 3,540 (15%)
Net Interest Revenue 510 21% 906 2,031 NM
---------- ---------- ----------
Total Trading Related Revenue $ 1,556 26% $ 5,063 $ 5,571 10%
========== ========== ==========
</Table>
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 15
<Page>
GLOBAL CORPORATE AND INVESTMENT BANK [CITIGROUP LOGO]
CAPITAL MARKETS AND BANKING
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 5,172 $ 4,153 $ 3,868 $ 4,299 $ 4,631 $ 4,509
Adjusted Operating Expenses 2,984 2,227 2,089 2,441 2,435 2,400
Provision for Credit Losses 270 286 212 671 611 455
---------- ---------- ---------- ---------- ---------- ----------
Core Income Before Taxes 1,918 1,640 1,567 1,187 1,585 1,654
Income Taxes and Minority Interest, Net of Tax 717 607 561 419 556 584
---------- ---------- ---------- ---------- ---------- ----------
CORE INCOME $ 1,201 $ 1,033 $ 1,006 $ 768 $ 1,029 $ 1,070
========== ========== ========== ========== ========== ==========
INVESTMENT BANKING
UNDERWRITING (FULL CREDIT TO BOOK MANAGER):
DEBT AND EQUITY:
Global Volume (1) $ 130,989 $ 119,208 $ 95,719 $ 150,670 $ 137,343 $ 110,582
Global Market Share 12.2% 11.0% 10.8% 14.2% 11.8% 10.4%
Rank 2 2 1 1 1 1
U.S. Volume (2) $ 100,395 $ 94,985 $ 80,201 $ 127,913 $ 114,284 $ 84,444
U.S. Market Share 14.2% 12.5% 11.9% 16.6% 13.7% 11.5%
Rank 2 2 1 1 1 1
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 4,013 4% $ 13,193 $ 13,153 -
Adjusted Operating Expenses 1,874 (10%) 7,300 6,709 (8%)
Provision for Credit Losses 710 NM 768 1,776 NM
---------- ---------- ----------
Core Income Before Taxes 1,429 (9%) 5,125 4,668 (9%)
Income Taxes and Minority Interest, Net of Tax 505 (10%) 1,885 1,645 (13%)
---------- ---------- ----------
CORE INCOME $ 924 (8%) $ 3,240 $ 3,023 (7%)
========== ========== ==========
INVESTMENT BANKING
UNDERWRITING (FULL CREDIT TO BOOK MANAGER):
DEBT AND EQUITY:
Global Volume (1) $ 77,435 (19%) $ 345,916 $ 325,360 (6%)
Global Market Share 10.0% 11.3% 10.8%
Rank 1 2 1
U.S. Volume (2) $ 65,015 (19%) $ 275,581 $ 263,743 (4%)
U.S. Market Share 11.3% 12.9% 12.3%
Rank 1 2 1
</Table>
(1) Includes non-convertible debt, Rule 144A non-convertible debt, Rule 144A
non-convertible preferred, non-convertible preferred, preferred, taxable
municipal debt, mortgage and asset backed debt, all common stock,
convertible debt and convertible preferred. Excludes all closed end funds.
(2) Includes all U.S. mortgage and asset backed debt, U.S. non-convertible
debt, U.S. Rule 144A non-convertible and U.S. taxable municipal debt, all
U.S. common stock, U.S. convertible debt and U.S. convertible preferred.
Excludes all closed end funds, 144A common stock, 144A convertible stock,
and 144A convertible preferred.
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 16
<Page>
GLOBAL CORPORATE AND INVESTMENT BANK [CITIGROUP LOGO]
PRIVATE CLIENT
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 1,549 $ 1,508 $ 1,450 $ 1,433 $ 1,477 $ 1,523
Adjusted Operating Expenses 1,235 1,179 1,157 1,130 1,165 1,198
Provision for Credit Losses - (1) 3 2 - 2
---------- ---------- ---------- ---------- ---------- ----------
Core Income Before Taxes 314 330 290 301 312 323
Income Taxes 118 124 108 112 115 119
---------- ---------- ---------- ---------- ---------- ----------
CORE INCOME $ 196 $ 206 $ 182 $ 189 $ 197 $ 204
========== ========== ========== ========== ========== ==========
PRIVATE CLIENT
Financial Consultants 12,675 12,802 12,963 12,927 12,767 12,808
Annualized Revenue per FC (000) $ 501 $ 473 $ 450 $ 440 $ 473 $ 473
Branch offices 530 530 538 536 536 538
SALOMON SMITH BARNEY
CLIENT ASSETS (IN BILLIONS OF DOLLARS)
ASSETS UNDER FEE-BASED MANAGEMENT
Consulting Group and Internally Managed Accounts $ 134.4 $ 149.3 $ 134.9 $ 150.2 $ 154.3 $ 137.4
Financial Consultant Managed Accounts 51.9 57.0 49.4 54.9 55.2 49.5
---------- ---------- ---------- ---------- ---------- ----------
TOTAL (1) $ 186.3 $ 206.3 $ 184.3 $ 205.1 $ 209.5 $ 186.9
========== ========== ========== ========== ========== ==========
Total Client Assets $ 911 $ 981 $ 905 $ 977 $ 994 $ 939
U.S. Bank Deposit Program $ 17.7 $ 25.4 $ 30.9 $ 35.6 $ 37.5 $ 37.2
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 1,399 (4%) $ 4,507 $ 4,399 (2%)
Adjusted Operating Expenses 1,133 (2%) 3,571 3,496 (2%)
Provision for Credit Losses - (100%) 2 2 -
---------- ---------- ----------
Core Income Before Taxes 266 (8%) 934 901 (4%)
Income Taxes 98 (9%) 350 332 (5%)
---------- ---------- ----------
CORE INCOME $ 168 (8%) $ 584 $ 569 (3%)
========== ========== ==========
PRIVATE CLIENT
Financial Consultants 12,744 (2%)
Annualized Revenue per FC (000) $ 435 (3%)
Branch offices 538 -
SALOMON SMITH BARNEY
CLIENT ASSETS (IN BILLIONS OF DOLLARS)
ASSETS UNDER FEE-BASED MANAGEMENT
Consulting Group and Internally Managed Accounts $ 118.2 (12%)
Financial Consultant Managed Accounts 44.3 (10%)
----------
TOTAL (1) $ 162.5 (12%)
==========
Total Client Assets $ 860 (5%)
U.S. Bank Deposit Program $ 40.0 29%
</Table>
(1) Includes some assets jointly managed with Citigroup Asset Management.
Reclassified to conform to the current period's presentation.
Page 17
<Page>
GLOBAL CORPORATE AND INVESTMENT BANK [CITIGROUP LOGO]
TRANSACTION SERVICES
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 902 $ 891 $ 856 $ 867 $ 835 $ 939
Adjusted Operating Expenses 749 698 697 684 642 626
Provision for Credit Losses 7 3 2 9 69 3
---------- ---------- ---------- ---------- ---------- ----------
Core Income Before Taxes 146 190 157 174 124 310
Income Taxes and Minority Interest, Net of Tax 55 74 57 61 42 106
---------- ---------- ---------- ---------- ---------- ----------
CORE INCOME $ 91 $ 116 $ 100 $ 113 $ 82 $ 204
========== ========== ========== ========== ========== ==========
LIABILITY BALANCES (AVERAGE IN BILLIONS) $ 74 $ 75 $ 79 $ 80 $ 82 $ 84
ASSETS UNDER CUSTODY (EOP IN TRILLIONS) $ 4.2 $ 4.5 $ 4.6 $ 4.8 $ 5.2 $ 5.4
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 891 4% $ 2,649 $ 2,665 1%
Adjusted Operating Expenses 625 (10%) 2,144 1,893 (12%)
Provision for Credit Losses 88 NM 12 160 NM
---------- ---------- ----------
Core Income Before Taxes 178 13% 493 612 24%
Income Taxes and Minority Interest, Net of Tax 57 - 186 205 10%
---------- ---------- ----------
CORE INCOME $ 121 21% $ 307 $ 407 33%
========== ========== ==========
LIABILITY BALANCES (AVERAGE IN BILLIONS) $ 85 8%
ASSETS UNDER CUSTODY (EOP IN TRILLIONS) $ 5.3 15%
</Table>
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 18
<Page>
GLOBAL INVESTMENT MANAGEMENT [CITIGROUP LOGO]
LIFE INSURANCE AND ANNUITIES
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
TOTAL REVENUES, NET OF INTEREST EXPENSE* $ 1,170 $ 1,014 $ 972 $ 1,223 $ 1,002 $ 1,216
Total Operating Expenses 97 94 91 112 92 112
Provision for Benefits and Claims 752 571 609 813 616 735
---------- ---------- ---------- ---------- ---------- ----------
Core Income Before Taxes and Minority Interest 321 349 272 298 294 369
Income Taxes 106 113 84 91 90 114
Minority Interest, net of tax - - 3 7 - -
---------- ---------- ---------- ---------- ---------- ----------
CORE INCOME $ 215 $ 236 $ 185 $ 200 $ 204 $ 255
========== ========== ========== ========== ========== ==========
Travelers Life & Annuity - Core Income $ 209 $ 230 $ 178 $ 201 $ 200 $ 206
International Insurance Manufacturing - Core Income $ 6 $ 6 $ 7 $ (1) $ 4 $ 49
PRE-TAX CONTRIBUTION BY SOURCE:
Individual annuities $ 119 $ 121 $ 94 $ 99 $ 123 $ 112
Group annuities 111 128 95 105 98 96
Life and long-term care insurance 61 73 51 75 51 74
Other (includes run-off and return on excess capital) 21 19 17 16 17 17
---------- ---------- ---------- ---------- ---------- ----------
Total Travelers Life & Annuity 312 341 257 295 289 299
Total International Insurance Manufacturing 9 8 15 3 5 70
---------- ---------- ---------- ---------- ---------- ----------
Total Life Insurance and Annuities $ 321 $ 349 $ 272 $ 298 $ 294 $ 369
========== ========== ========== ========== ========== ==========
TRAVELERS LIFE AND ANNUITY:
INDIVIDUAL ANNUITIES:
---------------------
Net written premiums and deposits:
Fixed $ 427 $ 572 $ 464 $ 657 $ 614 $ 603
Variable 1,099 1,068 952 881 898 916
Individual Payout 19 15 14 11 14 12
---------- ---------- ---------- ---------- ---------- ----------
Total $ 1,545 $ 1,655 $ 1,430 $ 1,549 $ 1,526 $ 1,531
========== ========== ========== ========== ========== ==========
Policyholder account balances and benefit
reserves: (1)
Fixed $ 8,272 $ 8,609 $ 8,908 $ 9,289 $ 9,681 $ 10,139
Variable 18,948 20,438 17,952 20,117 20,381 18,423
Individual Payout 632 632 630 626 622 618
---------- ---------- ---------- ---------- ---------- ----------
Total $ 27,852 $ 29,679 $ 27,490 $ 30,032 $ 30,684 $ 29,180
========== ========== ========== ========== ========== ==========
GROUP ANNUITIES:
Net written premiums and deposits (2) $ 2,502 $ 1,397 $ 1,717 $ 1,452 $ 1,525 $ 2,350
Policyholder account balances and benefit
reserves: (1)
GIC's and other investment contracts $ 13,732 $ 14,091 $ 14,795 $ 15,345 $ 15,563 $ 16,560
Payout group annuities 5,141 5,259 5,360 5,647 5,740 5,963
---------- ---------- ---------- ---------- ---------- ----------
Total $ 18,873 $ 19,350 $ 20,155 $ 20,992 $ 21,303 $ 22,523
========== ========== ========== ========== ========== ==========
INDIVIDUAL LIFE INSURANCE:
--------------------------
Net written premiums and deposits:
Direct periodic premiums and deposits $ 187 $ 142 $ 126 $ 197 $ 233 $ 177
Single premium deposits 47 48 36 77 76 72
Reinsurance (22) (24) (25) (25) (26) (28)
---------- ---------- ---------- ---------- ---------- ----------
Total $ 212 $ 166 $ 137 $ 249 $ 283 $ 221
========== ========== ========== ========== ========== ==========
Policyholder account balances and benefit reserves $ 3,085 $ 3,193 $ 3,175 $ 3,401 $ 3,592 $ 3,643
Life insurance in force (in billions, face amt.) $ 69.4 $ 71.0 $ 72.5 $ 75.0 $ 77.8 $ 79.6
Life insurance issued (in billions, face amt.) $ 3.8 $ 2.9 $ 2.9 $ 4.2 $ 4.5 $ 4.0
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
TOTAL REVENUES, NET OF INTEREST EXPENSE* $ 1,073 10% $ 3,156 $ 3,291 4%
Total Operating Expenses 124 36% 282 328 16%
Provision for Benefits and Claims 698 15% 1,932 2,049 6%
---------- ---------- ----------
Core Income Before Taxes and Minority Interest 251 (8%) 942 914 (3%)
Income Taxes 68 (19%) 303 272 (10%)
Minority Interest, net of tax - (100%) 3 - (100%)
---------- ---------- ----------
CORE INCOME $ 183 (1%) $ 636 $ 642 1%
========== ========== ==========
Travelers Life & Annuity - Core Income $ 170 (4%) $ 617 $ 576 (7%)
International Insurance Manufacturing - Core Income $ 13 86% $ 19 $ 66 NM
PRE-TAX CONTRIBUTION BY SOURCE:
Individual annuities $ 89 (5%) $ 334 $ 324 (3%)
Group annuities 62 (35%) 334 256 (23%)
Life and long-term care insurance 72 41% 185 197 6%
Other (includes run-off and return on excess capital) 12 (29%) 57 46 (19%)
---------- ---------- ----------
Total Travelers Life & Annuity 235 (9%) 910 823 (10%)
Total International Insurance Manufacturing 16 7% 32 91 NM
---------- ---------- ----------
Total Life Insurance and Annuities $ 251 (8%) $ 942 $ 914 (3%)
========== ========== ==========
TRAVELERS LIFE AND ANNUITY:
INDIVIDUAL ANNUITIES:
---------------------
Net written premiums and deposits:
Fixed $ 592 28% $ 1,463 $ 1,809 24%
Variable 695 (27%) 3,119 2,509 (20%)
Individual Payout 15 7% 48 41 (15%)
---------- ---------- ----------
Total $ 1,302 (9%) $ 4,630 $ 4,359 (6%)
========== ========== ==========
Policyholder account balances and benefit
reserves: (1)
Fixed $ 10,748 21%
Variable 15,945 (11%)
Individual Payout 615 (2%)
----------
Total $ 27,308 (1%)
==========
GROUP ANNUITIES:
Net written premiums and deposits (2) $ 1,397 (19%) $ 5,616 $ 5,272 (6%)
Policyholder account balances and benefit
reserves: (1)
GIC's and other investment contracts $ 16,551 12%
Payout group annuities 6,124 14%
----------
Total $ 22,675 13%
==========
INDIVIDUAL LIFE INSURANCE:
--------------------------
Net written premiums and deposits:
Direct periodic premiums and deposits $ 143 13% $ 455 $ 553 22%
Single premium deposits 64 78% 131 212 62%
Reinsurance (29) (16%) (71) (83) (17%)
---------- ---------- ----------
Total $ 178 30% $ 515 $ 682 32%
========== ========== ==========
Policyholder account balances and benefit reserves $ 3,635 14%
Life insurance in force (in billions, face amt.) $ 80.7 11%
Life insurance issued (in billions, face amt.) $ 3.2 10% $ 9.6 $ 11.7 22%
</Table>
(1) Includes general account, separate accounts and managed funds.
(2) Excludes deposits of $167.0, $29.0 and $30.0 for the first, second and
third quarters of 2002, respectively and $28.0, $12.0, $594.0 and $275.0 in
the first, second, third and fourth quarters of 2001, respectively, related
to Citigroup plans previously managed externally.
* Excludes Realized Gain / (Losses) on Investments.
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 19
<Page>
GLOBAL INVESTMENT MANAGEMENT [CITIGROUP LOGO]
PRIVATE BANK
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 392 $ 376 $ 366 $ 408 $ 423 $ 427
Adjusted Operating Expenses 239 230 225 245 254 261
Provision for Credit Losses 2 1 4 16 6 -
---------- ---------- ---------- ---------- ---------- ----------
Core Income Before Taxes 151 145 137 147 163 166
Income Taxes 56 53 46 53 51 53
---------- ---------- ---------- ---------- ---------- ----------
CORE INCOME $ 95 $ 92 $ 91 $ 94 $ 112 $ 113
========== ========== ========== ========== ========== ==========
Average Assets (in billions of dollars) $ 25 $ 26 $ 26 $ 26 $ 28 $ 29
========== ========== ========== ========== ========== ==========
Return on Assets 1.54% 1.42% 1.39% 1.43% 1.62% 1.56%
========== ========== ========== ========== ========== ==========
Client Business Volumes (in billions of dollars) $ 146 $ 151 $ 150 $ 159 $ 166 $ 163
========== ========== ========== ========== ========== ==========
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS):
Proprietary Managed Assets $ 29 $ 28 $ 29 $ 31 $ 31 $ 29
Other Assets under Fee-Based Management 5 7 6 8 9 9
Banking and Fiduciary Deposits 31 31 33 34 35 36
Loans 26 26 27 27 29 30
Other, Principally Custody Accounts 55 59 55 59 62 59
---------- ---------- ---------- ---------- ---------- ----------
Total Client Business Volumes $ 146 $ 151 $ 150 $ 159 $ 166 $ 163
========== ========== ========== ========== ========== ==========
REVENUES:
Customer Revenues
Net Interest Spread and Recurring
Fee-Based Revenues $ 250 $ 247 $ 253 $ 256 $ 271 $ 269
Transaction Revenues 99 81 62 94 92 96
---------- ---------- ---------- ---------- ---------- ----------
Total Customer Revenues 349 328 315 350 363 365
Other Revenues (Principally Allocated Equity
and Treasury Revenues) 43 48 51 58 60 62
---------- ---------- ---------- ---------- ---------- ----------
TOTAL REVENUES $ 392 $ 376 $ 366 $ 408 $ 423 $ 427
========== ========== ========== ========== ========== ==========
North America $ 153 $ 154 $ 152 $ 164 $ 187 $ 184
International 239 222 214 244 236 243
---------- ---------- ---------- ---------- ---------- ----------
$ 392 $ 376 $ 366 $ 408 $ 423 $ 427
========== ========== ========== ========== ========== ==========
Net Credit Loss Ratio (0.01%) 0.04% 0.03% 0.15% 0.04% 0.00%
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 412 13% $ 1,134 $ 1,262 11%
Adjusted Operating Expenses 237 5% 694 752 8%
Provision for Credit Losses 5 25% 7 11 57%
---------- ---------- ----------
Core Income Before Taxes 170 24% 433 499 15%
Income Taxes 55 20% 155 159 3%
---------- ---------- ----------
CORE INCOME $ 115 26% $ 278 $ 340 22%
========== ========== ==========
Average Assets (in billions of dollars) $ 29 12% $ 26 $ 29 12%
========== ========== ==========
Return on Assets 1.57% 1.43% 1.57%
========== ========== ==========
Client Business Volumes (in billions of dollars) $ 157 5% $ 150 $ 157 5%
========== ========== ==========
CLIENT BUSINESS VOLUMES (IN BILLIONS OF DOLLARS):
Proprietary Managed Assets $ 28 (3%)
Other Assets under Fee-Based Management 8 33%
Banking and Fiduciary Deposits 36 9%
Loans 31 15%
Other, Principally Custody Accounts 54 (2%)
----------
Total Client Business Volumes $ 157 5%
==========
REVENUES:
Customer Revenues
Net Interest Spread and Recurring
Fee-Based Revenues $ 268 6% $ 750 $ 808 8%
Transaction Revenues 73 18% 242 261 8%
---------- ---------- ----------
Total Customer Revenues 341 8% 992 1,069 8%
Other Revenues (Principally Allocated Equity
and Treasury Revenues) 71 39% 142 193 36%
---------- ---------- ----------
TOTAL REVENUES $ 412 13% $ 1,134 $ 1,262 11%
========== ========== ==========
North America $ 187 23% $ 459 $ 558 22%
International 225 5% 675 704 4%
---------- ---------- ----------
$ 412 13% $ 1,134 $ 1,262 11%
========== ========== ==========
Net Credit Loss Ratio 0.08%
</Table>
Reclassified to conform to the current period's presentation.
Page 20
<Page>
GLOBAL INVESTMENT MANAGEMENT [CITIGROUP LOGO]
ASSET MANAGEMENT (1)
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 516 $ 491 $ 546 $ 532 $ 519 $ 522
Adjusted Operating Expenses 361 347 373 329 325 317
---------- ---------- ---------- ---------- ---------- ----------
Core income before taxes and minority interest 155 144 173 203 194 205
Income Taxes 63 60 63 67 68 67
Minority Interest, net of tax 1 - 6 11 - 1
---------- ---------- ---------- ---------- ---------- ----------
CORE INCOME $ 91 $ 84 $ 104 $ 125 $ 126 $ 137
========== ========== ========== ========== ========== ==========
Pre-tax profit margin 30.0% 29.3% 31.7% 38.2% 37.4% 39.3%
ASSET MANAGEMENT (EXCL. RETIREMENT SERVICES):
Total Revenues, Net of Interest Expense $ 445 $ 420 $ 424 $ 417 $ 435 $ 441
Adjusted Operating Expenses 309 295 291 267 274 280
---------- ---------- ---------- ---------- ---------- ----------
Core income before taxes and minority interest 136 125 133 150 161 161
Income taxes and minority interest, net of tax 54 51 53 58 63 60
---------- ---------- ---------- ---------- ---------- ----------
CORE INCOME $ 82 $ 74 $ 80 $ 92 $ 98 $ 101
========== ========== ========== ========== ========== ==========
RETIREMENT SERVICES:
Total Revenues, Net of Interest Expense $ 71 $ 71 $ 122 $ 115 $ 84 $ 81
Adjusted Operating Expenses 52 52 82 62 51 37
---------- ---------- ---------- ---------- ---------- ----------
Core income before taxes and minority interest 19 19 40 53 33 44
Income taxes and minority interest, net of tax 10 9 16 20 5 8
---------- ---------- ---------- ---------- ---------- ----------
CORE INCOME $ 9 $ 10 $ 24 $ 33 $ 28 $ 36
========== ========== ========== ========== ========== ==========
NET FLOWS BY BUSINESS (IN BILLIONS OF DOLLARS):
Retail/Private Bank $ 8.7 $ 7.6 $ 7.3 $ 7.2 $ 6.0 $ 3.2
Institutional
Long Term 1.6 2.6 1.7 2.9 4.1 3.6
Liquidity 5.0 9.9 8.4 2.5 9.8 1.7
---------- ---------- ---------- ---------- ---------- ----------
Total Institutional 6.6 12.5 10.1 5.4 13.9 5.3
---------- ---------- ---------- ---------- ---------- ----------
Net Flows Excluding US Retail Money Markets $ 15.3 $ 20.1 $ 17.4 $ 12.6 $ 19.9 $ 8.5
---------- ---------- ---------- ---------- ---------- ----------
US Retail Money Markets $ (6.5) $ (12.6) $ (2.5) $ (4.6) $ (1.6) $ (4.5)
ASSETS UNDER MANAGEMENT BY BUSINESS (IN BILLIONS
OF DOLLARS):
Retail/Private Bank (2) $ 233.6 $ 231.6 $ 223.4 $ 237.2 $ 238.9 $ 220.6
Institutional 116.5 131.0 138.7 142.5 156.6 161.7
Citigroup Alternative Investments (4) 46.2 48.3 48.3 48.1 48.9 50.1
Retirement Services 6.7 7.3 11.3 12.1 9.9 10.1
---------- ---------- ---------- ---------- ---------- ----------
Total assets under management (2, 4) $ 403.0 $ 418.2 $ 421.7 $ 439.9 $ 454.3 $ 442.5
========== ========== ========== ========== ========== ==========
ASSETS UNDER MANAGEMENT BY PRODUCT (IN BILLIONS
OF DOLLARS):
Equity/Balanced $ 158.4 $ 169.5 $ 151.4 $ 167.2 $ 165.5 $ 151.3
Fixed Income 80.7 83.6 98.6 99.8 106.3 111.7
Money Markets/Liquidity 126.7 125.0 131.5 132.2 140.6 135.2
Alternative Investments 37.2 40.1 40.2 40.7 41.9 44.3
---------- ---------- ---------- ---------- ---------- ----------
Total assets under management (2, 4) $ 403.0 $ 418.2 $ 421.7 $ 439.9 $ 454.3 $ 442.5
========== ========== ========== ========== ========== ==========
NUMBER OF MORNINGSTAR 4- AND 5-STAR MUTUAL FUND
SHARE CLASSES (3)
Equity 12 11 11 10 11 12
Fixed Income 11 5 8 7 10 13
CITISTREET JOINT VENTURE - ASSETS UNDER
ADMINISTRATION $ 183.5 $ 181.6 $ 178.8 $ 179.3 $ 181.0 $ 175.8
(IN BILLIONS OF DOLLARS)
</Table>
<Table>
<Caption>
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
TOTAL REVENUES, NET OF INTEREST EXPENSE $ 518 (5%) $ 1,553 $ 1,559 -
Adjusted Operating Expenses 311 (17%) 1,081 953 (12%)
---------- ---------- ----------
Core income before taxes and minority interest 207 20% 472 606 28%
Income Taxes 70 11% 186 205 10%
Minority Interest, net of tax - (100%) 7 1 (86%)
---------- ---------- ----------
CORE INCOME $ 137 32% $ 279 $ 400 43%
========== ========== ==========
Pre-tax profit margin 40.0%
ASSET MANAGEMENT (EXCL. RETIREMENT SERVICES):
Total Revenues, Net of Interest Expense $ 428 1% $ 1,289 $ 1,304 1%
Adjusted Operating Expenses 274 (6%) 895 828 (7%)
---------- ---------- ----------
Core income before taxes and minority interest 154 16% 394 476 21%
Income taxes and minority interest, net of tax 59 11% 158 182 15%
---------- ---------- ----------
CORE INCOME $ 95 19% $ 236 $ 294 25%
========== ========== ==========
RETIREMENT SERVICES:
Total Revenues, Net of Interest Expense $ 90 (26%) $ 264 $ 255 (3%)
Adjusted Operating Expenses 37 (55%) 186 125 (33%)
---------- ---------- ----------
Core income before taxes and minority interest 53 33% 78 130 67%
Income taxes and minority interest, net of tax 11 (31%) 35 24 (31%)
---------- ---------- ----------
CORE INCOME $ 42 75% $ 43 $ 106 NM
========== ========== ==========
NET FLOWS BY BUSINESS (IN BILLIONS OF DOLLARS):
Retail/Private Bank $ 0.7 (90%) $ 23.6 $ 9.9 (58%)
Institutional
Long Term 1.6 (6%) 5.9 9.3 58%
Liquidity (8.1) NM 23.3 3.4 (85%)
---------- ---------- ----------
Total Institutional (6.5) NM 29.2 12.7 (57%)
---------- ---------- ----------
Net Flows Excluding US Retail Money Markets $ (5.8) NM $ 52.8 $ 22.6 (57%)
---------- ---------- ----------
US Retail Money Markets $ (3.0) (20%) $ (21.6) $ (9.1) 58%
ASSETS UNDER MANAGEMENT BY BUSINESS (IN BILLIONS
OF DOLLARS):
Retail/Private Bank (2) $ 201.5 (10%)
Institutional 150.2 8%
Citigroup Alternative Investments (4) 89.5 85%
Retirement Services 10.6 (6%)
----------
Total assets under management (2, 4) $ 451.8 7%
==========
ASSETS UNDER MANAGEMENT BY PRODUCT (IN BILLIONS
OF DOLLARS):
Equity/Balanced $ 129.4 (15%)
Fixed Income 145.1 47%
Money Markets/Liquidity 124.3 (5%)
Alternative Investments 53.0 32%
-----------
Total assets under management (2, 4) $ 451.8 7%
==========
NUMBER OF MORNINGSTAR 4- AND 5-STAR MUTUAL FUND
SHARE CLASSES (3)
Equity 13 18%
Fixed Income 13 63%
CITISTREET JOINT VENTURE - ASSETS UNDER
ADMINISTRATION $ 158.8 (11%)
(IN BILLIONS OF DOLLARS)
</Table>
(1) Includes Retirement Services Businesses.
(2) Includes $29, $28, $29 and $31 billion for the first, second, third and
fourth quarters of 2001, respectively, and $31, $29 and $28 billion for the
first, second and third quarters of 2002, respectively, for Citigroup
Private Bank clients.
(3) Asset calculations are based on classes of such funds ranked by
Morningstar. Number of funds reflects only one class per fund and are based
on performance of non-money market retail funds.
(4) Includes Travelers Property Casualty Corp. assets of $34 billion which
Asset Management manages on a third-party basis following the spin-off.
NM Not meaningful
Reclassified to conform to the current period's presentation.
Page 21
<Page>
PROPRIETARY INVESTMENT ACTIVITIES (1) [CITIGROUP LOGO]
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ADJUSTED REVENUES (2) $ (74) $ 310 $ (360) $ 565 $ 92 $ (69)
TOTAL OPERATING EXPENSE 32 18 26 42 33 29
CORE INCOME (LOSS) (2) $ (68) $ 206 $ (249) $ 335 $ 35 $ (70)
TOTAL PERIOD END ASSETS (IN BILLIONS) $ 10.4 $ 10.0 $ 9.0 $ 9.3 $ 9.3 $ 8.3
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
Adjusted Revenues (2) $ (101) 72% $ (124) $ (78) 37%
TOTAL OPERATING EXPENSE 47 81% 76 109 43%
CORE INCOME (LOSS) (2) $ (123) 51% $ (111) $ (158) (42%)
TOTAL PERIOD END ASSETS (IN BILLIONS) $ 8.8 (2%)
</Table>
(1) Includes Venture Capital Activities and certain other corporate
investments.
(2) The 2002 third quarter includes $527 million ($323 million after-tax)
related to the gain on sale of 399 Park Avenue.
Reclassified to conform to the current period's presentation.
Page 22
<Page>
INSURANCE INVESTMENT PORTFOLIO (1)
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q
2001 2001 2001 2001 2002
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Fixed-income investments:
Available for sale, at market:
Mortgage-backed securities - principally
obligations of U.S. Government agencies $ 8,304 $ 8,584 $ 8,943 $ 8,114 $ 8,160
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies 1,676 1,389 1,559 1,901 2,093
Corporates (including redeemable preferreds) 22,651 23,440 24,193 23,864 24,730
Obligations of states and political subdivisions 624 674 645 161 148
Debt securities issued by foreign governments 780 929 830 856 749
Held to maturity, at amortized cost 29 28 28 15 13
---------- ---------- ---------- ---------- ----------
Total fixed income 34,064 35,044 36,198 34,911 35,893
Equity securities, at market 1,304 1,289 1,201 551 548
Short-term and other 3,930 3,240 4,713 5,136 4,140
---------- ---------- ---------- ---------- ----------
TOTAL INVESTMENTS HELD BY INSURANCE COMPANIES $ 39,298 $ 39,573 $ 42,112 $ 40,598 $ 40,581
========== ========== ========== ========== ==========
After-tax unrealized gains / (losses) on invested assets $ 321 $ 135 $ 389 $ 217 $ (112)
========== ========== ========== ========== ==========
</Table>
<Table>
<Caption>
3Q 2002 vs.
2Q 3Q 3Q 2001 Increase/
2002 2002 (Decrease)
---------- ---------- -----------------
<S> <C> <C> <C>
Fixed-income investments:
Available for sale, at market:
Mortgage-backed securities - principally
obligations of U.S. Government agencies $ 8,516 $ 9,113 2%
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies 2,068 2,254 45%
Corporates (including redeemable preferreds) 25,840 26,810 11%
Obligations of states and political subdivisions 241 318 (51%)
Debt securities issued by foreign governments 643 537 (35%)
Held to maturity, at amortized cost 12 12 (57%)
---------- ----------
Total fixed income 37,320 39,044 8%
Equity securities, at market 539 470 (61%)
Short-term and other 4,230 3,836 (19%)
---------- ----------
TOTAL INVESTMENTS HELD BY INSURANCE COMPANIES $ 42,089 $ 43,350 3%
========== ==========
After-tax unrealized gains / (losses) on invested assets $ 160 $ 600 54%
========== ==========
</Table>
(1) Includes investments held by insurance companies. Excludes Travelers
Property Casualty Corp.
Reclassified to conform to the current period's presentation.
Page 23
<Page>
CITIGROUP CONSOLIDATED STATEMENT OF INCOME
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
REVENUES
Loan interest, including fees $ 9,997 $ 9,746 $ 10,282 $ 9,563 $ 9,159 $ 9,517
Other interest and dividends 6,646 6,491 6,316 5,443 4,944 5,483
Insurance premiums 942 723 789 996 780 931
Commissions and fees 4,054 3,668 3,746 4,125 3,928 4,105
Principal transactions 2,325 1,417 1,019 783 1,666 1,099
Asset management and administration fees 1,389 1,331 1,371 1,298 1,320 1,377
Realized gains (losses) from sales of
investments 239 15 108 (125) 30 (190)
Other income 956 1,265 851 1,391 827 1,279
--------- --------- --------- --------- --------- ---------
Total revenues 26,548 24,656 24,482 23,474 22,654 23,601
Interest expense 9,478 8,424 8,284 5,607 4,856 5,608
--------- --------- --------- --------- --------- ---------
Total revenues, net of interest expense 17,070 16,232 16,198 17,867 17,798 17,993
--------- --------- --------- --------- --------- ---------
BENEFITS, CLAIMS, AND CREDIT LOSSES
Policyholder benefits and claims 943 763 820 994 803 925
Provision for credit losses 1,474 1,485 1,580 2,261 2,559 2,057
--------- --------- --------- --------- --------- ---------
Total benefits, claims, and credit
losses 2,417 2,248 2,400 3,255 3,362 2,982
--------- --------- --------- --------- --------- ---------
OPERATING EXPENSES
Non-insurance compensation and benefits 5,329 4,762 4,525 4,833 5,090 4,979
Insurance underwriting, acquisition and
operating 322 312 243 238 269 233
Restructuring-related items (1) 132 210 133 (21) 46 (40)
Other operating (2) 3,951 3,537 3,865 4,157 3,651 3,975
--------- --------- --------- --------- --------- ---------
Total operating expenses 9,734 8,821 8,766 9,207 9,056 9,147
--------- --------- --------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME
TAXES, MINORITY INTEREST AND CUMULATIVE
EFFECT OF ACCOUNTING CHANGES 4,919 5,163 5,032 5,405 5,380 5,864
Provision for income taxes 1,798 1,837 1,771 1,797 1,879 2,017
Minority interest, net of income taxes 9 15 26 37 17 18
--------- --------- --------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS BEFORE
CUMULATIVE EFFECT OF ACCOUNTING CHANGES 3,112 3,311 3,235 3,571 3,484 3,829
DISCONTINUED OPERATIONS (3)
Income (Loss) from Discontinued Operations 660 464 (151) 405 455 359
Gain on Sale of Stock by Subsidiary - - - - 1,270 -
Provision (benefit) for income taxes 192 123 (93) 101 319 104
--------- --------- --------- --------- --------- ---------
INCOME (LOSS) FROM DISCONTINUED OPERATIONS 468 341 (58) 304 1,406 255
Cumulative Effect of Accounting Changes (4) (42) (116) - - (47) -
--------- --------- --------- --------- --------- ---------
NET INCOME $ 3,538 $ 3,536 $ 3,177 $ 3,875 $ 4,843 $ 4,084
========= ========= ========= ========= ========= =========
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
REVENUES
Loan interest, including fees $ 9,686 (6%) $ 30,025 $ 28,362 (6%)
Other interest and dividends 5,398 (15%) 19,453 15,825 (19%)
Insurance premiums 855 8% 2,454 2,566 5%
Commissions and fees 3,612 (4%) 11,468 11,645 2%
Principal transactions 970 (5%) 4,761 3,735 (22%)
Asset management and administration fees 1,263 (8%) 4,091 3,960 (3%)
Realized gains (losses) from sales of
investments (165) NM 362 (325) NM
Other income 1,886 NM 3,072 3,992 30%
--------- --------- ----------
Total revenues 23,505 (4%) 75,686 69,760 (8%)
Interest expense 5,861 (29%) 26,186 16,325 (38%)
--------- --------- ----------
Total revenues, net of interest expense 17,644 9% 49,500 53,435 8%
--------- --------- ----------
BENEFITS, CLAIMS, AND CREDIT LOSSES
Policyholder benefits and claims 887 8% 2,526 2,615 4%
Provision for credit losses 2,689 70% 4,539 7,305 61%
--------- --------- ----------
Total benefits, claims, and credit
losses 3,576 49% 7,065 9,920 40%
--------- --------- ----------
OPERATING EXPENSES
Non-insurance compensation and benefits 4,387 (3%) 14,616 14,456 (1%)
Insurance underwriting, acquisition and
operating 230 (5%) 877 732 (17%)
Restructuring-related items (1) (41) NM 475 (35) NM
Other operating (2) 3,864 - 11,353 11,490 1%
--------- --------- ----------
Total operating expenses 8,440 (4%) 27,321 26,643 (2%)
--------- --------- ----------
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME
TAXES, MINORITY INTEREST AND CUMULATIVE
EFFECT OF ACCOUNTING CHANGES 5,628 12% 15,114 16,872 12%
Provision for income taxes 1,898 7% 5,406 5,794 7%
Minority interest, net of income taxes 24 (8%) 50 59 18%
--------- --------- ----------
INCOME FROM CONTINUING OPERATIONS BEFORE
CUMULATIVE EFFECT OF ACCOUNTING CHANGES 3,706 15% 9,658 11,019 14%
DISCONTINUED OPERATIONS (3)
Income (Loss) from Discontinued Operations 151 NM 973 965 (1%)
Gain on Sale of Stock by Subsidiary - - - 1,270 -
Provision (benefit) for income taxes (63) 32% 222 360 62%
--------- --------- ----------
INCOME (LOSS) FROM DISCONTINUED OPERATIONS 214 NM 751 1,875 NM
Cumulative Effect of Accounting Changes (4) - - (158) (47) 70%
--------- --------- ----------
NET INCOME $ 3,920 23% $ 10,251 $ 12,847 25%
========= ========= ==========
</Table>
(1) Restructuring-related items in the 2001 first quarter related principally
to severance and costs associated with the reduction of staff in the Global
Corporate and Investment Bank businesses, in the 2001 second quarter
related principally to severance and costs associated with the reduction of
staff primarily in the Global Corporate and Investment Bank and Global
Consumer businesses, in the 2001 third quarter primarily related to the
acquisition of Banamex and the integration of its operations, in the 2001
fourth quarter primarily related to reductions in the reserve due to
changes in estimates, in the 2002 first quarter primarily related to
severance and costs associated with the reduction of staff in Argentina
within the Latin America consumer and corporate businesses, and in the 2002
second and third quarters primarily related to reductions in the reserve
due to changes in estimates.
(2) Other operating expenses include the amortization of goodwill and certain
intangible assets totalling approximately $133 million, $135 million, $127
million and $137 million in the first, second, third and fourth quarters of
2001, respectively. Amortization of these assets ceased upon adoption of
SFAS 142 on January 1, 2002.
(3) Travelers Property Casualty Corp. (TPC) (a wholly-owned subsidiary of
Citigroup on December 31, 2001) sold 231,000,000 shares of class A common
stock at $18.50 per share in an initial public offering (IPO) on March 27,
2002. Citigroup made a tax-free distribution to its stockholders of a
portion of its ownership interest in TPC on August 20, 2002. Discontinued
Operations includes the operations of TPC, the $1.270 billion ($1.158
billion after-tax) gain on the IPO and income taxes on the operations and
IPO gain. Citigroup remains a holder of approximately 9.9% of TPC's common
equity.
(4) Accounting Changes refer to the 2001 first quarter adoption of Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities", as amended (SFAS 133), the 2001 second
quarter adoption of EITF issue 99-20, "Recognition of Interest Income and
Impairment on Purchased and Retained Beneficial Interests in Securitized
Financial Assets" (EITF 99-20), and the 2002 first quarter adoption of the
remaining provisions of SFAS No. 142, "Goodwill and Other Intangible
Assets" (SFAS 142).
NM Not meaningful
Page 24
<Page>
CITIGROUP EARNINGS ANALYSIS - MANAGED BASIS
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q 1Q 2Q
2001 2001 2001 2001 2002 2002
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 17,070 $ 16,232 $ 16,198 $ 17,867 $ 17,798 $ 17,993
Realized Insurance Investment Portfolio
(Gains) / Losses (115) (1) (98) 71 (25) 185
Effect of Securitization Activities 766 930 907 965 1,021 1,081
---------- ---------- ---------- ---------- --------- ----------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 17,721 17,161 17,007 18,903 18,794 19,259
Total Operating Expenses (1) 9,734 8,821 8,766 9,207 9,056 9,147
Restructuring-Related Items (2) (132) (210) (133) 21 (46) 40
---------- ---------- ---------- ---------- --------- ----------
ADJUSTED OPERATING EXPENSES 9,602 8,611 8,633 9,228 9,010 9,187
Benefits, Claims and Credit Losses 2,417 2,248 2,400 3,255 3,362 2,982
Effect of Securitization Activities 766 930 907 965 1,021 1,081
---------- ---------- ---------- ---------- --------- ----------
ADJUSTED BENEFITS, CLAIMS AND CREDIT LOSSES 3,183 3,178 3,307 4,220 4,383 4,063
CORE INCOME BEFORE INCOME TAXES AND MINORITY
INTEREST 4,936 5,372 5,067 5,455 5,401 6,009
Taxes on Core Income 1,809 1,917 1,786 1,814 1,887 2,068
Minority Interest, Net of Income Taxes 9 15 26 37 17 18
---------- ---------- ---------- ---------- --------- ----------
CORE INCOME 3,118 3,440 3,255 3,604 3,497 3,923
Restructuring-Related Items, After-tax (2) (80) (131) (84) 13 (29) 26
Cumulative Effect of Accounting Changes (3) (42) (116) - - (47) -
Realized Insurance Investment Portfolio
Gains / (Losses), After-tax 74 2 64 (46) 16 (120)
Discontinued Operations, After-tax (4) 468 341 (58) 304 1,406 255
---------- ---------- ---------- ---------- --------- ----------
NET INCOME $ 3,538 $ 3,536 $ 3,177 $ 3,875 $ 4,843 $ 4,084
========== ========== ========== ========== ========= ==========
</Table>
<Table>
<Caption>
3Q 2002 vs. YTD YTD YTD 3Q 2002 VS.
3Q 3Q 2001 INCREASE/ 3Q 3Q YTD 3Q 2001 INCREASE/
2002 (DECREASE) 2001 2002 (DECREASE)
---------- ----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 17,644 9% $ 49,500 $ 53,435 8%
Realized Insurance Investment Portfolio
(Gains) / Losses 170 NM (214) 330 NM
Effect of Securitization Activities 960 6% 2,603 3,062 18%
----------- ---------- ----------
ADJUSTED REVENUES, NET OF INTEREST EXPENSE 18,774 10% 51,889 56,827 10%
Total Operating Expenses (1) 8,440 (4%) 27,321 26,643 (2%)
Restructuring-Related Items (2) 41 NM (475) 35 NM
----------- ---------- ----------
ADJUSTED OPERATING EXPENSES 8,481 (2%) 26,846 26,678 (1%)
Benefits, Claims and Credit Losses 3,576 49% 7,065 9,920 40%
Effect of Securitization Activities 960 6% 2,603 3,062 18%
----------- ---------- ----------
ADJUSTED BENEFITS, CLAIMS AND CREDIT LOSSES 4,536 37% 9,668 12,982 34%
CORE INCOME BEFORE INCOME TAXES AND MINORITY
INTEREST 5,757 14% 15,375 17,167 12%
Taxes on Core Income 1,940 9% 5,512 5,895 7%
Minority Interest, Net of Income Taxes 24 (8%) 50 59 18%
----------- ---------- ----------
CORE INCOME 3,793 17% 9,813 11,213 14%
Restructuring-Related Items, After-tax (2) 27 NM (295) 24 NM
Cumulative Effect of Accounting Changes (3) - - (158) (47) 70%
Realized Insurance Investment Portfolio
Gains / (Losses), After-tax (114) NM 140 (218) NM
Discontinued Operations, After-tax (4) 214 NM 751 1,875 NM
----------- ---------- ----------
NET INCOME $ 3,920 23% $ 10,251 $ 12,847 25%
=========== ========== ==========
</Table>
(1) Other operating expenses include the amortization of goodwill and certain
intangible assets totalling approximately $133 million, $135 million, $127
million and $137 million in the first, second, third and fourth quarters of
2001, respectively. Amortization of these assets ceased upon adoption of
SFAS 142 on January 1, 2002.
(2) Restructuring-related items in the 2001 first quarter related principally
to severance and costs associated with the reduction of staff in the Global
Corporate and Investment Bank businesses, in the 2001 second quarter
related principally to severance and costs associated with the reduction of
staff primarily in the Global Corporate and Investment Bank and Global
Consumer businesses, in the 2001 third quarter primarily related to the
acquisition of Banamex and the integration of its operations, in the 2001
fourth quarter primarily related to reductions in the reserve due to
changes in estimates, in the 2002 first quarter primarily related to
severance and costs associated with the reduction of staff in Argentina
within the Latin America consumer and corporate businesses, and in the 2002
second and third quarters primarily related to reductions in the reserve
due to changes in estimates.
(3) Accounting Changes refer to the 2001 first quarter adoption of Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities", as amended (SFAS 133), the 2001 second
quarter adoption of EITF issue 99-20, "Recognition of Interest Income and
Impairment on Purchased and Retained Beneficial Interests in Securitized
Financial Assets" (EITF 99-20), and the 2002 first quarter adoption of the
remaining provisions of SFAS No. 142, "Goodwill and Other Intangible
Assets" (SFAS 142).
(4) Travelers Property Casualty Corp. (TPC) (a wholly-owned subsidiary of
Citigroup on December 31, 2001) sold 231,000,000 shares of class A common
stock at $18.50 per share in an initial public offering (IPO) on March 27,
2002. Citigroup made a tax-free distribution to its stockholders of a
portion of its ownership interest in TPC on August 20, 2002. Discontinued
Operations includes the operations of TPC, the $1.270 billion ($1.158
billion after-tax) gain on the IPO and income taxes on the operations and
IPO gain. Citigroup remains a holder of approximately 9.9% of TPC's common
equity.
NM Not meaningful
Page 25
<Page>
CITIGROUP CONSOLIDATED STATEMENT OF FINANCIAL POSITION (1)
(In millions of dollars)
<Table>
<Caption>
MARCH 31, JUNE 30, SEPTEMBER 30, DECEMBER 31, MARCH 31
2001 2001 2001 2001 2002
------------- ------------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash and due from banks (including segregated
cash and other deposits) $ 14,373 $ 15,081 $ 21,877 $ 18,515 $ 15,984
Deposits at interest with banks 19,284 15,199 17,488 19,216 17,189
Federal funds sold and securities purchased
under resale agreements 134,188 138,668 138,582 134,809 150,605
Brokerage receivables 24,592 23,238 50,004 35,155 26,848
Trading account assets 137,137 145,113 155,292 144,904 145,059
Investments 125,698 123,480 147,879 160,837 172,085
Loans, net of unearned income
Consumer 220,780 225,018 246,779 248,201 246,699
Corporate 145,497 143,608 152,636 143,732 142,262
----------- ---------- ----------- ----------- -----------
Loans, net of unearned income 366,277 368,626 399,415 391,933 388,961
Allowance for credit losses (8,957) (8,917) (9,918) (10,088) (10,520)
----------- ---------- ----------- ----------- -----------
Total loans, net 357,320 359,709 389,497 381,845 378,441
Goodwill 11,949 11,975 23,327 23,861 25,506
Intangible assets 7,656 7,575 8,760 9,003 8,885
Reinsurance recoverables 10,507 10,636 12,064 12,373 12,531
Separate and variable accounts 23,514 25,102 23,080 25,569 25,981
Other assets 78,109 77,651 80,399 85,363 78,543
----------- ---------- ----------- ----------- -----------
TOTAL ASSETS $ 944,327 $ 953,427 $1,068,249 $1,051,450 $1,057,657
=========== ========== =========== =========== ===========
LIABILITIES
Non-interest-bearing deposits in U.S.
offices $ 16,755 $ 18,056 $ 20,598 $ 23,054 $ 21,652
Interest-bearing deposits in U.S. offices 81,637 85,515 102,572 110,388 119,083
Non-interest-bearing deposits in offices
outside the U.S. 13,975 14,115 16,463 18,779 18,488
Interest-bearing deposits in offices
outside the U.S. 200,918 196,912 217,537 222,304 223,166
----------- ---------- ----------- ----------- -----------
Total deposits 313,285 314,598 357,170 374,525 382,389
Federal funds purchased and securities sold
under repurchase agreements 136,239 148,365 154,709 153,511 165,120
Brokerage payables 13,415 16,517 45,643 32,891 25,790
Trading account liabilities 84,783 76,034 74,508 80,543 81,537
Contractholder funds and separate and variable
accounts 44,501 46,812 45,714 48,932 49,992
Insurance policy and claims reserves 45,157 45,432 48,667 49,294 49,840
Investment banking and brokerage borrowings 17,843 12,817 9,975 14,804 17,091
Short-term borrowings 48,474 45,923 50,632 24,461 24,805
Long-term debt 118,080 121,705 128,276 121,631 117,757
Other liabilities 48,971 50,121 67,431 62,486 52,992
----------- ---------- ----------- ----------- -----------
Citigroup or subsidiary obligated mandatorily
redeemable securities of subsidiary trusts
holding solely junior subordinated debt
securities of --Parent 2,300 2,300 4,850 4,850 4,326
--Subsidiary 2,620 2,275 2,275 2,275 2,380
----------- ---------- ----------- ----------- -----------
TOTAL LIABILITIES 875,668 882,899 989,850 970,203 974,019
----------- ---------- ----------- ----------- -----------
STOCKHOLDERS' EQUITY
Preferred Stock 1,747 1,763 1,774 1,525 1,400
Common Stock 54 54 55 55 55
Additional paid-in capital 17,050 16,881 23,150 23,196 23,860
Retained earnings 61,660 64,460 66,781 69,803 73,798
Treasury stock (10,299) (10,763) (11,170) (11,099) (11,194)
Accumulated other changes in equity from
nonowner sources 235 (90) (559) (844) (1,770)
Unearned compensation (1,788) (1,777) (1,632) (1,389) (2,511)
----------- ---------- ----------- ----------- -----------
TOTAL STOCKHOLDERS' EQUITY 68,659 70,528 78,399 81,247 83,638
----------- ---------- ----------- ----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 944,327 $ 953,427 $1,068,249 $1,051,450 $1,057,657
=========== ========== =========== =========== ===========
</Table>
<Table>
<Caption>
SEPTEMBER 30, 2002
VS.
JUNE 30, SEPT 30, December 31, 2001
2002 2002 (2) INC (DECR)
------------- ------------- -----------------
<S> <C> <C> <C>
ASSETS
Cash and due from banks (including segregated
cash and other deposits) $ 17,686 $ 15,886 (14%)
Deposits at interest with banks 16,768 15,183 (21%)
Federal funds sold and securities purchased
under resale agreements 148,384 157,482 17%
Brokerage receivables 21,050 21,208 (40%)
Trading account assets 163,867 161,803 12%
Investments 172,945 142,059 (12%)
Loans, net of unearned income
Consumer 260,503 265,869 7%
Corporate 142,712 138,016 (4%)
----------- ---------------
Loans, net of unearned income 403,215 403,885 3%
Allowance for credit losses (10,437) (10,720) (6%)
----------- ---------------
Total loans, net 392,778 393,165 3%
Goodwill 25,604 22,559 (5%)
Intangible assets 8,844 7,776 (14%)
Reinsurance recoverables 12,481 4,328 (65%)
Separate and variable accounts 24,017 21,522 (16%)
Other assets 78,882 68,597 (20%)
----------- ---------------
TOTAL ASSETS $1,083,306 $ 1,031,568 (2%)
=========== ===============
LIABILITIES
Non-interest-bearing deposits in U.S.
offices $ 21,475 $ 22,469 (3%)
Interest-bearing deposits in U.S. offices 114,466 118,101 7%
Non-interest-bearing deposits in offices
outside the U.S. 19,706 19,343 3%
Interest-bearing deposits in offices
outside the U.S. 239,231 230,914 4%
----------- ---------------
Total deposits 394,878 390,827 4%
Federal funds purchased and securities sold
under repurchase agreements 171,619 164,946 7%
Brokerage payables 21,175 19,766 (40%)
Trading account liabilities 86,564 95,699 19%
Contractholder funds and separate and variable
accounts 49,925 48,347 (1%)
Insurance policy and claims reserves 50,129 16,304 (67%)
Investment banking and brokerage borrowings 16,015 19,951 35%
Short-term borrowings 24,638 27,991 14%
Long-term debt 114,580 109,672 (10%)
Other liabilities 61,300 51,211 (18%)
----------- ---------------
Citigroup or subsidiary obligated mandatorily
redeemable securities of subsidiary trusts
holding solely junior subordinated debt
securities of --Parent 4,435 4,605 (5%)
--Subsidiary 2,333 1,483 (35%)
----------- ---------------
TOTAL LIABILITIES 997,591 950,802 (2%)
----------- ---------------
STOCKHOLDERS' EQUITY
Preferred Stock 1,400 1,400 (8%)
Common Stock 55 55 -
Additional paid-in capital 23,815 16,795 (28%)
Retained earnings 76,924 79,911 14%
Treasury stock (12,624) (14,363) (29%)
Accumulated other changes in equity from
nonowner sources (1,726) (1,095) (30%)
Unearned compensation (2,129) (1,937) (39%)
----------- ---------------
TOTAL STOCKHOLDERS' EQUITY 85,715 80,766 (1%)
----------- ---------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,083,306 $ 1,031,568 (2%)
=========== ===============
</Table>
(1) Periods prior to September 30, 2002, include balances for Travelers
Property Casualty Corp.
(2) Preliminary
Page 26
<Page>
CONSUMER LOAN DELINQUENCY AMOUNTS, NET CREDIT LOSSES AND RATIOS
(In millions of dollars, except loan amounts in billions)
<Table>
<Caption>
EOP
90 DAYS OR MORE PAST DUE (1) LOANS
----------------------------------------------------------
3Q01 2Q02 3Q02 3Q02
------------ ------------- -------------- -----------
<S> <C> <C> <C> <C>
PRODUCT VIEW:
CARDS $ 2,119 $ 2,248 $ 2,305 $ 123.9
RATIO 1.79% 1.85% 1.86%
NORTH AMERICA CARDS 1,960 2,025 2,108 112.9
RATIO 1.81% 1.83% 1.87%
INTERNATIONAL CARDS 159 223 197 11.0
RATIO 1.53% 2.04% 1.79%
CONSUMER FINANCE 2,134 2,131 2,101 79.6
RATIO 2.89% 2.72% 2.64%
NORTH AMERICA CONSUMER FINANCE 1,908 1,828 1,776 63.1
RATIO 3.24% 2.97% 2.82%
INTERNATIONAL CONSUMER FINANCE 226 303 325 16.5
RATIO 1.51% 1.82% 1.97%
RETAIL BANKING 3,316 3,561 3,490 107.8
RATIO 3.19% 3.31% 3.24%
NORTH AMERICA RETAIL BANKING 2,160 2,333 2,243 72.0
RATIO 3.26% 3.39% 3.11%
INTERNATIONAL RETAIL BANKING 1,156 1,228 1,247 35.8
RATIO 3.07% 3.16% 3.48%
PRIVATE BANK 78 193 201 28.8
RATIO 0.31% 0.67% 0.70%
OTHER (2) - - 251 1.2
------------ ------------- -------------- -----------
TOTAL MANAGED $ 7,647 $ 8,133 $ 8,348 $ 341.3
RATIO 2.36% 2.41% 2.45%
------------ ------------- -------------- -----------
REGIONAL VIEW:
NORTH AMERICA (EXCLUDING MEXICO) $ 5,233 $ 5,511 $ 5,581 $ 256.0
RATIO 2.20% 2.22% 2.18%
MEXICO 824 762 659 9.4
RATIO 7.64% 7.69% 7.04%
WESTERN EUROPE 828 1,015 1,090 23.6
RATIO 4.08% 4.41% 4.62%
JAPAN 191 264 260 17.2
RATIO 1.07% 1.32% 1.51%
ASIA (EXCLUDING JAPAN) 355 387 340 26.7
RATIO 1.34% 1.42% 1.27%
LATIN AMERICA 163 115 352 3.5
RATIO 2.95% 2.99% 10.13%
CEEMEA 53 79 66 4.9
RATIO 1.12% 1.59% 1.34%
------------ ------------- -------------- -----------
TOTAL MANAGED $ 7,647 $ 8,133 $ 8,348 $ 341.3
Ratio 2.36% 2.41% 2.45%
------------ ------------- -------------- -----------
</Table>
<Table>
<Caption>
NET CREDIT LOSSES (1) AVERAGE
------------------------------------------------------------ LOANS
3Q01 2Q02 3Q02 3Q02
----------------- --------------- ------------------ -----------------
<S> <C> <C> <C> <C>
PRODUCT VIEW:
CARDS $ 1,548 $ 1,842 $ 1,767 $ 122.0
RATIO 5.28% 6.23% 5.75%
NORTH AMERICA CARDS 1,448 1,719 1,616 111.1
RATIO 5.42% 6.38% 5.77%
INTERNATIONAL CARDS 100 123 151 10.9
RATIO 3.83% 4.67% 5.46%
CONSUMER FINANCE 536 709 764 79.1
RATIO 2.94% 3.71% 3.83%
NORTH AMERICA CONSUMER FINANCE 364 470 438 62.3
RATIO 2.48% 3.10% 2.79%
INTERNATIONAL CONSUMER FINANCE 172 239 326 16.8
RATIO 4.86% 6.12% 7.68%
RETAIL BANKING 184 212 186 108.1
RATIO 0.72% 0.80% 0.68%
NORTH AMERICA RETAIL BANKING 74 120 65 69.8
RATIO 0.46% 0.70% 0.37%
INTERNATIONAL RETAIL BANKING 110 92 121 38.3
RATIO 1.16% 0.97% 1.26%
PRIVATE BANK 2 - 5 28.6
RATIO 0.03% 0.00% 0.08%
OTHER (2) 17 - (1) 1.3
----------------- --------------- ------------------ -----------------
TOTAL MANAGED $ 2,287 $ 2,763 $ 2,721 $ 339.1
RATIO 2.85% 3.34% 3.18%
----------------- --------------- ------------------ -----------------
REGIONAL VIEW:
NORTH AMERICA (EXCLUDING MEXICO) $ 1,869 $ 2,220 $ 2,076 $ 250.9
RATIO 3.13% 3.65% 3.28%
MEXICO 36 90 46 9.6
RATIO 1.81% 3.43% 1.90%
WESTERN EUROPE 86 94 129 23.4
RATIO 1.72% 1.72% 2.19%
JAPAN 149 226 309 19.8
RATIO 3.47% 4.79% 6.21%
ASIA (EXCLUDING JAPAN) 68 91 108 27.0
RATIO 1.01% 1.34% 1.58%
LATIN AMERICA 67 30 39 3.5
RATIO 4.66% 3.03% 4.40%
CEEMEA 12 12 14 4.9
RATIO 0.99% 1.03% 1.14%
----------------- --------------- ------------------ -----------------
TOTAL MANAGED $ 2,287 $ 2,763 $ 2,721 $ 339.1
Ratio 2.85% 3.34% 3.18%
----------------- --------------- ------------------ -----------------
</Table>
(1) The ratios of 90 days or more past due and net credit losses are calculated
based on end-of-period and average loans, respectively, both net of
unearned income.
(2) Includes $251 million of loans received from the Argentine government in
exchange for government bonds in the 2001 fourth quarter. These loans are
included within the Life Insurance and Annuities business. Reclassified to
conform to the current period's presentation.
Page 27
<Page>
RESERVE FOR LOAN LOSSES
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q
2001 2001 2001 2001
------------- ------------------ ----------------- -----------------
<S> <C> <C> <C> <C>
ALLOWANCE FOR CREDIT LOSSES AT BEGINNING OF PERIOD $ 8,961 $ 8,957 $ 8,917 $ 9,918
------------- ------------------ ----------------- -----------------
PROVISION FOR CREDIT LOSSES:
Global Consumer 1,197 1,196 1,362 1,573
Global Corporate and Investment Bank 147 126 87 494
CitiCapital 130 163 131 194
------------- ------------------ ----------------- -----------------
1,474 1,485 1,580 2,261
------------- ------------------ ----------------- -----------------
GROSS CREDIT LOSSES:
Global Consumer 1,364 1,407 1,590 1,884
Global Corporate and Investment Bank 181 181 171 632
CitiCapital 150 188 229 311
------------- ------------------ ----------------- -----------------
1,695 1,776 1,990 2,827
------------- ------------------ ----------------- -----------------
CREDIT RECOVERIES:
Global Consumer 199 183 211 260
Global Corporate and Investment Bank 33 56 87 118
CitiCapital 21 26 32 34
------------- ------------------ ----------------- -----------------
253 265 330 412
------------- ------------------ ----------------- -----------------
NET CREDIT LOSSES
Global Consumer 1,165 1,224 1,379 1,624
Global Corporate and Investment Bank 148 125 84 514
CitiCapital 129 162 197 277
------------- ------------------ ----------------- -----------------
1,442 1,511 1,660 2,415
------------- ------------------ ----------------- -----------------
Other -- net (1) (36) (14) 1,081 324
------------- ------------------ ----------------- -----------------
ALLOWANCE FOR CREDIT LOSSES AT END OF PERIOD $ 8,957 $ 8,917 $ 9,918 $ 10,088
============= ================== ================= =================
Net Consumer Credit Losses $ 1,165 $ 1,224 $ 1,379 $ 1,624
As a Percentage of Average Consumer Loans 2.10% 2.19% 2.28% 2.62%
Net Corporate Credit Losses $ 148 $ 125 $ 84 $ 514
As a Percentage of Average Corporate Loans 0.60% 0.49% 0.33% 2.15%
Net CitiCapital Credit Losses $ 129 $ 162 $ 197 $ 277
As a Percentage of Average CitiCapital Loans 1.35% 1.74% 1.70% 2.23%
ALLOWANCE FOR CREDIT LOSSES
Consumer $ 4,956 $ 4,914 $ 5,454 $ 5,507
Corporate 3,249 3,257 3,715 3,898
CitiCapital 752 746 749 683
------------- ------------------ ----------------- -----------------
Total Allowance for Credit Losses $ 8,957 $ 8,917 $ 9,918 $ 10,088
============= ================== ================= =================
ALLOWANCE AS A PERCENT OF TOTAL LOANS
Consumer 2.24% 2.18% 2.21% 2.22%
Corporate 2.83% 2.87% 3.09% 3.44%
CitiCapital 2.44% 2.46% 2.32% 2.25%
Total 2.45% 2.42% 2.48% 2.57%
</Table>
<Table>
<Caption>
1Q 2Q 3Q
2002 2002 2002
-------------------- -------------------- -------------------
<S> <C> <C> <C>
ALLOWANCE FOR CREDIT LOSSES AT BEGINNING OF PERIOD $ 10,088 $ 10,520 $ 10,437
-------------------- -------------------- -------------------
PROVISION FOR CREDIT LOSSES:
Global Consumer 1,878 1,599 1,885
Global Corporate and Investment Bank 569 265 668
CitiCapital 112 193 136
-------------------- -------------------- -------------------
2,559 2,057 2,689
-------------------- -------------------- -------------------
GROSS CREDIT LOSSES:
Global Consumer 1,898 1,941 2,039
Global Corporate and Investment Bank 371 368 534
CitiCapital 187 258 171
-------------------- -------------------- -------------------
2,456 2,567 2,744
-------------------- -------------------- -------------------
CREDIT RECOVERIES:
Global Consumer 255 259 278
Global Corporate and Investment Bank 42 106 73
CitiCapital 30 35 31
-------------------- -------------------- -------------------
327 400 382
-------------------- -------------------- -------------------
NET CREDIT LOSSES
Global Consumer 1,643 1,682 1,761
Global Corporate and Investment Bank 329 262 461
CitiCapital 157 223 140
-------------------- -------------------- -------------------
2,129 2,167 2,362
-------------------- -------------------- -------------------
Other -- net (1) 2 27 (44)
-------------------- -------------------- -------------------
ALLOWANCE FOR CREDIT LOSSES AT END OF PERIOD $ 10,520 $ 10,437 $ 10,720
==================== ==================== ===================
Net Consumer Credit Losses $ 1,643 $ 1,682 $ 1,761
As a Percentage of Average Consumer Loans 2.71% 2.65% 2.65%
Net Corporate Credit Losses $ 329 $ 262 $ 461
As a Percentage of Average Corporate Loans 1.15% 1.12% 1.77%
Net CitiCapital Credit Losses $ 157 $ 223 $ 140
As a Percentage of Average CitiCapital Loans 1.35% 1.99% 1.69%
ALLOWANCE FOR CREDIT LOSSES
Consumer $ 5,732 $ 5,756 $ 5,849
Corporate 4,152 4,051 4,244
CitiCapital 636 630 627
-------------------- -------------------- -------------------
Total Allowance for Credit Losses $ 10,520 $ 10,437 $ 10,720
==================== ==================== ===================
ALLOWANCE AS A PERCENT OF TOTAL LOANS
Consumer 2.32% 2.21% 2.20%
Corporate 3.68% 3.60% 3.85%
CitiCapital 2.18% 2.18% 2.26%
Total 2.70% 2.59% 2.65%
</Table>
(1) The 2001 third quarter includes the addition of $1 billion of credit loss
reserves related to the acquisition of Banamex. A review of the Banamex
credit portfolio was completed in the 2001 fourth quarter resulting in an
increase to the allowance for credit losses. This increase does not relate
to credit deterioration in the 2001 fourth quarter.
Page 28
<Page>
NON-PERFORMING ASSETS
(In millions of dollars)
<Table>
<Caption>
1Q 2Q 3Q 4Q
2001 2001 2001 2001
------------- ------------------ ----------------- -----------------
<S> <C> <C> <C> <C>
CASH-BASIS AND RENEGOTIATED LOANS
CORPORATE CASH-BASIS LOANS
Collateral Dependent (at lower of cost or
collateral value) (1) $ 528 $ 527 $ 699 $ 699
Other 1,879 2,079 2,404 2,834
-------------- ----------------- ----------------- ------------------
Total Corporate Cash-Basis Loans $ 2,407 $ 2,606 $ 3,103 $ 3,533
============== ================= ================= ==================
CORPORATE CASH-BASIS LOANS
CitiCapital $ 439 $ 495 $ 613 $ 625
JENA (2) 710 654 620 900
Other International (3) 1,195 1,420 1,838 1,987
Insurance Subsidiaries 55 24 26 19
Investment Activities 8 13 6 2
-------------- ----------------- ----------------- ------------------
Total Corporate Cash-Basis Loans $ 2,407 $ 2,606 $ 3,103 $ 3,533
============== ================= ================= ==================
CORPORATE CASH-BASIS LOANS AS A % OF
TOTAL CORPORATE LOANS 1.65% 1.81% 2.03% 2.46%
CORPORATE RENEGOTIATED LOANS $ 434 $ 435 $ 369 $ 336
============== ================= ================= ==================
CONSUMER LOANS ON WHICH ACCRUAL OF INTEREST
HAS BEEN SUSPENDED $ 3,814 $ 4,134 $ 4,748 $ 4,742
============== ================= ================= ==================
OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED
ASSETS
Consumer (4) $ 268 $ 289 $ 407 $ 393
-------------- ----------------- ----------------- ------------------
Global Corporate and Investment Bank 178 199 189 147
Insurance Subsidiaries 123 111 112 118
-------------- ----------------- ----------------- ------------------
Total Corporate (4) 301 310 301 265
-------------- ----------------- ----------------- ------------------
Corporate/Other 8 8 9 8
-------------- ----------------- ----------------- ------------------
TOTAL OTHER REAL ESTATE OWNED $ 577 $ 607 $ 717 $ 666
============== ================= ================= ==================
OTHER REPOSSESSED ASSETS (5) $ 419 $ 409 $ 479 $ 439
============== ================= ================= ==================
</Table>
<Table>
<Caption>
1Q 2Q 3Q
2002 2002 2002
-------------------- ------------------ ------------------
<S> <C> <C> <C>
CASH-BASIS AND RENEGOTIATED LOANS
CORPORATE CASH-BASIS LOANS
Collateral Dependent (at lower of cost or
collateral value) (1) $ 493 $ 485 $ 473
Other 3,502 4,088 4,352
-------------------- ------------------ ------------------
Total Corporate Cash-Basis Loans $ 3,995 $ 4,573 $ 4,825
==================== ================== ==================
CORPORATE CASH-BASIS LOANS
CitiCapital $ 674 $ 644 $ 757
JENA (2) 924 1,074 1,096
Other International (3) 2,358 2,766 2,836
Insurance Subsidiaries 38 38 43
Investment Activities 1 51 93
-------------------- ------------------ ------------------
Total Corporate Cash-Basis Loans $ 3,995 $ 4,573 $ 4,825
==================== ================== ==================
CORPORATE CASH-BASIS LOANS AS A % OF
TOTAL CORPORATE LOANS 2.81% 3.20% 3.50%
CORPORATE RENEGOTIATED LOANS $ 335 $ 317 $ 267
==================== ================== ==================
CONSUMER LOANS ON WHICH ACCRUAL OF INTEREST
HAS BEEN SUSPENDED $ 5,047 $ 4,992 $ 5,055
==================== ================== ==================
OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED
ASSETS
Consumer (4) $ 384 $ 458 $ 473
-------------------- ------------------ ------------------
Global Corporate and Investment Bank 145 136 153
Insurance Subsidiaries 125 123 54
-------------------- ------------------ ------------------
Total Corporate (4) 270 259 207
-------------------- ------------------ ------------------
Corporate/Other - - -
-------------------- ------------------ ------------------
TOTAL OTHER REAL ESTATE OWNED $ 654 $ 717 $ 680
==================== ================== ==================
OTHER REPOSSESSED ASSETS (5) $ 381 $ 320 $ 227
==================== ================== ==================
</Table>
(1) A cash-basis loan is defined as collateral dependent when repayment is
expected to be provided solely by the underlying collateral and there are
no other available and reliable sources of repayment, in which case the
loans are written down to the lower of cost or collateral value.
(2) JENA includes Japan, Western Europe and North America.
(3) Other International includes Asia (excluding Japan), Mexico, Latin America,
Central and Eastern Europe, Middle East and Africa. Banamex loan data from
the third quarter of 2001 forward is included in Mexico. A review of the
Banamex credit portfolio was completed in the 2001 fourth quarter which
caused Corporate cash-basis loans to increase. This increase does not
relate to credit deterioration in the 2001 fourth quarter.
(4) Represents repossessed real estate, carried at lower of cost or fair value,
less costs to sell.
(5) Primarily Corporate transportation equipment, carried at lower of cost or
fair value, less costs to sell.
Reclassified to conform to the current period's presentation.
Page 29
<Page>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: October 15, 2002 CITIGROUP INC.
By: /s/ William P. Hannon
-------------------------------
Name: William P. Hannon
Title: Controller
Principal Accounting Officer