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 | |
2
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.
3
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.
5
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Citigroup Inc. published this content on 13 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 January 2023 10:33:08 UTC.