Citigroup : Fourth Quarter 2022 Presentation

Earnings Results Presentation Fourth Quarter and Full Year 2022

January 13, 2023

Agenda

			Page
1	4Q22 and FY 2022 Financial Results	3
2	Financial Outlook
	▪	2023 Outlook	19
	▪	Medium-term Outlook	22
3	Appendix	26

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Fourth Quarter and Full Year Results Snapshot

	Revenues
4Q22	$18.0 billion
2022	$75.3 billion
	RoTCE(1)
4Q22	5.8%
2022	8.9%

	Net Income
4Q22	$2.5 billion
2022	$14.8 billion
	CET1 Capital Ratio(2)
4Q22	13.0%
3Q22	12.3%

Full Year Key Highlights

	EPS
4Q22	$1.16
2022	$7.00

Tangible Book Value Per Share(3)

4Q22	$81.65
vs. 3Q22	2%

• Continued strong client engagement across ICG
• TTS revenues up 32% YoY; wallet share gains further strengthened our industry-leading position
• Securities Services revenues up 15% YoY, benefiting from higher rates and onboarding $1.2 trillion of client assets
• Markets revenues up 7% YoY, driven by Fixed Income growth of 13% YoY
• Fixed Income strengthened its leadership position(5)

• Cards revenues up 8% YoY, with double-digit growth in revenues and interest-earning balances in the second half
• Wealth revenues down 2% YoY; up 3% YoY ex-Asia(4)
• Client advisors increased 4% YoY
• UHNW client acquisitions up 21% YoY
• Returned ~$7.3 billion in capital to shareholders in the form of common dividends and share repurchases

Note: ICG: Institutional Clients Group. UHNW: Ultra High Net Worth. TTS: Treasury and Trade Solutions. EPS: Earnings per Share. All footnotes are presented on Slide 38.

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2022 Year in Review Against Our Priorities

	Transformation	Strategic Execution		Culture and Talent
•	Significantly expanded firmwide project management •	Refreshed the strategic vision for Citi, focused around	•	Made key senior leadership changes
	and execution capabilities with clear accountabilities	five core, interconnected businesses:	•	Refreshed and augmented our talent pool; ~2/3 of
		‒ Services:
•	Redesigned data organization and governance to		open roles filled by external hires
	improve data quality and timeliness	▪ TTS: #1 with Large Institutional Clients(1)	•	Almost 50% of top two management layers new-to-
•	Invested in Business Risk and Controls capabilities	▪ Securities Services: #4 AUC/AUA, #1 Direct		seat, promoting collaboration and challenging status
	to strengthen and automate key controls	Custody(2)		quo
•	Dedicated 11K people to the Transformation, across	‒ Markets: #1 in Fixed Income, #6 in Equities(3)	•	More closely aligned compensation with shareholder
	operations, technology, risk, data, controls, etc.	‒ Banking: #5 Overall(4)		interests, including by changing deferred cash
•	AML Consent Order lifted by the OCC	‒ USPB: #2 in Cards(5)		compensation to deferred stock where legally
	permitted
		‒ Wealth: #5 in Private Banking(6), #3 in Asia(7)	•	Conducted Risk & Controls Behavioral Assessment
	•	Identified 14 non-strategic consumer markets to exit		to help ensure top seniors are creating the conditions
		‒ Closed the sale of 5 divestitures		for excellence
		‒ On track to close the remaining 4 Asia sales	•	Published annual ESG Report, highlighting first year
		‒ Mexico consumer and SBMM exit in process		of progress towards $1 trillion sustainable finance
			goal
		‒ Actively winding down consumer in Korea (ahead
		•	Expanded and raised diversity representation goals,
		of plan), China and the Russia franchise
			setting 2025 aspirations
	•	Integrated Wealth businesses
	•	Realized cross-firm synergies

Executing with Excellence Across All Priorities To Unlock the Value of Citi

Drive Revenue	Disciplined Expense	Improve Returns	Maintain Robust
Over the
Growth	Management	Capital & Liquidity
Medium-Term

Note: AML: Anti-Money Laundering. TTS: Treasury and Trade Solution. USPB: US Personal Banking. SBMM: Small Business and Middle-Market Banking. OCC: Office of the Comptroller of the Currency. RWA: Risk-Weighted Assets.
AUC: Assets Under Custody. AUA: Assets Under Administration. All footnotes are presented on Slide 38.	4

Reminder That Our Path Forward Comes In Three Phases & 2023 Falls In Phase 1

PHASE 1

Execute and Invest

• Ramp up of execution against transformation milestones
• Investment-drivenrevenue growth
• Top-linebenefits from macro factors
• Continued investments in front office, technology and digital
• Rigorous tracking of progress

Lay the Foundation

PHASE 2 (3-5 YEARS From 2021)

Deliver Medium-term Targets

• Mix begins to shift towards higher returning businesses (Services, CCB(1) and Wealth)
• Transformation efficiencies begin to materialize
• Improved returns

~11-12% RoTCE

PHASE 3

Longer-term

• Further revenue growth from investments
• Normalization of expenses will start to self-fund investments
• Higher returns
• Simpler organization

Longer-term Benefits Materialize

2023 - Relentless Execution

• Execute: Against our transformation
• Execute: Simplify the organization and management structure
• Execute: Close signed divestitures and announce others
• Execute: Accelerate wind-downs
• Execute: Continue to deliver on our strategy and show proof points

Note: All footnotes are presented on Slide 38.

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