2024
Annual Report
Citi’s Value Proposition
A mission of
enabling growth
and economic
progress
What you can expect from us and what we
expect from ourselves
Citi’s mission is to serve as a trusted partner to our clients by responsibly providing
financial services that enable growth and economic progress. Our core activities are
safeguarding assets, lending money, making payments and accessing the capital markets
on behalf of our clients. We have more than 200 years of experience helping our clients
meet the world’s toughest challenges and embrace its greatest opportunities. We are
Citi, the global bank — an institution connecting millions of people across hundreds of
countries and cities.
We protect people’s savings and help them make the purchases — from everyday
transactions to buying a home — that improve the quality of their lives. We advise people
on how to invest for future needs, such as their children’s education and their own
retirement, and help them buy securities such as stocks and bonds.
We work with companies to optimize their daily operations, whether they need working
capital, to make payroll or export their goods overseas. By lending to companies large
and small, we help them grow, creating jobs and real economic value at home and in
communities around the world. We provide financing and support to governments at
all levels, so they can build sustainable infrastructure, such as housing, transportation,
schools and other vital public works.
These capabilities create an obligation to act responsibly, do everything possible to create
the best outcomes and prudently manage risk. If we fall short, we will take decisive action
and learn from our experience.
We strive to earn and maintain the public’s trust by constantly adhering to the highest
ethical standards. We ask our colleagues to ensure that their decisions pass three tests:
they are in our clients’ interests, create economic value and are always systemically
responsible. When we do these things well, we make a positive financial and social
impact in the communities we serve and show what a global bank can do.
1
3
Letter to shareholders
Dear Shareholders,
As I reflect on the changes we have made at Citi over the past
several years, one fact is clear: today, we are a fundamentally
different bank — simpler, more focused, and fully aligned
with what our stakeholders expect of us.
Since our Investor Day in 2022, we have taken decisive
action to make Citi the preeminent banking partner for
institutions with cross-border needs, a global leader in wealth
management and a valued personal bank in our home market.
We have set a clear vision, simplified our operations, sharpened
and executed our strategy, and positioned ourselves to drive
consistently stronger financial performance and higher returns.
Here are just some of the key steps we have taken to
strengthen our ability to deliver for all stakeholders:
We have focused our business mix. Our focus is now
around five interconnected businesses — Services, Markets,
Banking, Wealth and U.S. Personal Banking — each with
a clear path to accelerating growth, gaining share and
increasing returns. As part of focusing our business mix,
we continue to make progress with the divestitures of our
international consumer franchises, with all either completed
or moving towards completion. In 2024, we passed a major
milestone when we successfully separated Banamex into a
new entity, an important step towards its eventual IPO and a
testament to our ability to get the hard things done.
We have strengthened connectivity between our businesses.
The natural linkages between our businesses have always been
a strength, and today we are maximizing those connections. All
parts of the firm are working more closely together to bring the
full power of Citi to our clients. Our Retail Banking business, for
instance, is an important source of referrals and deposits for
our Wealth business. Meanwhile, Services and Markets work
together to provide seamless foreign exchange solutions to
help clients optimize their global financial operations.
We have shifted our priority to improving returns. With the
changes to our business mix and the emphasis on increasing
the synergies between our five businesses, our focus is squarely
on growing returns. Our senior leaders are assessed based
on how well our businesses are increasing returns rather
than revenues, and we have increased their alignment with
shareholders by delivering a greater portion of compensation
in Citi stock. While we have changed our Return on Tangible
Common Equity (RoTCE) target for 2026 to between 10% and
11%1, which is slightly lower than our previous goal, let me be
clear that this is not our final destination. We absolutely have
the ambition to grow our returns further over time, and we will
hold ourselves accountable every step of the way.
We have changed how we run the bank. With our
organizational simplification behind us, the heads of our five
businesses are at my table, fully engaged in how we run the
bank and in the critical decisions we make every day. Senior
management is closer to our clients so they can deliver the full
firm to them. Decision-making is faster, our teams are more
agile, and we can move more quickly for all our stakeholders.
We have invested heavily in our infrastructure. As part of
our enterprise-wide Transformation, we have enhanced
governance, overhauled our risk management structures,
automated processes and controls, and embedded
accountability throughout the firm. And we are not stopping
there. The vast amounts of data we have as a global bank
can be a true competitive resource for us, and we are making
the necessary investments in data governance and quality to
make that happen.
We have raised the bar on what we expect from ourselves.
To strengthen accountability and a culture of excellence,
we have revamped our scorecards to ensure we are always
delivering for clients. Our new structure enables our people to
partner consistently across our businesses and geographies.
We have also attracted top industry talent, including new
leadership in Banking, Wealth and Technology, who are
driving greater intensity around delivering results.
Momentum is building
With these foundations in place, we are laser-focused on our
two priorities — improving our business performance and
executing the Transformation.
In 2024, each of our five businesses delivered solid results,
including record revenues for Services, Wealth and U.S.
Personal Banking. As a firm, we delivered $81.1 billion in
revenues in 2024, our highest since 2010. We also delivered
positive operating leverage for the firm overall, as well as
in every one of our five businesses. Cost of credit remained
elevated, but in line with our expectations. Net income was
$12.7 billion, up 37% from the prior year.
We returned nearly $7 billion in capital to our common
shareholders, and our RoTCE was 7%2, a 210-basis point
improvement from the prior year. Additionally, we announced
a $20 billion multiyear common stock repurchase program,
demonstrating our commitment to return excess capital to
our shareholders.
Services continued to outperform the competition, delivering
another year of record revenue as a result of new mandates
and our emphasis on fee growth. For the full year, revenues
for the business grew 9%, with both Treasury & Trade
Solutions and Securities Services continuing to gain market
share. Our focus in the business remains on investing in the
client experience and enhancing our technology to deepen
client relationships. In 2024, we expanded our position as
the leading global bank for cross-border payments as we
connected our network with Mastercard’s vast debit network.
Markets delivered another strong performance, closing out
the year with its best fourth quarter in a decade. Full-year
revenues increased 6%, fueled by strong growth in Equities,
which had its highest annual revenue in a decade. Our fully
integrated trading and securitization capabilities continue
to enhance our competitive position; there is no other
financial institution that can match the product breadth and
geographic reach Citi offers corporate and investor clients.
Banking, which includes Investment Banking, Corporate
Banking and Commercial Banking, also had a strong year. We
gained share across all three Investment Banking products
— equity capital markets, debt capital markets and M&A —
driving a 32% increase in revenues for our Banking business.
We continued to play a leading role in the most transformative
deals, including Mars’ acquisition of Kellanova, the year’s
“The world is changing fast, but Citi
is changing faster. We are not just
keeping pace with the future; we are
helping to shape it.”
Jane Fraser, Chief Executive Officer
4
5
REVENUES
$81.1B
NET INCOME
$12.7B
SERVICES REVENUES
9%
MARKETS REVENUES
6%
EPS
$5.94
RoTCE
7.0%
2
BANKING REVENUES
32%
4
WEALTH REVENUES
7%
SLR
5.8%
3
CET1 CAPITAL RATIO
13.6%
3
USPB REVENUES
6%
Full year 2024 results and key metrics
1 As used herein, 2026 RoTCE is a forward-looking non-GAAP financial measure. From time to time, management may discuss forward-looking non-GAAP financial measures, such as forward-
looking estimates or targets for revenue, expenses and RoTCE. Citi is unable to provide a reconciliation of forward-looking non-GAAP financial measures to their most directly comparable GAAP
financial measures because Citi is unable to provide, without unreasonable effort, a meaningful or accurate calculation or estimation of amounts that would be necessary for the reconciliation
due to the complexity and inherent difficulty in forecasting and quantifying future amounts or when they may occur. Such unavailable information could be significant for future results.
2 RoTCE is a non-GAAP financial measure. RoTCE represents annualized net income available to common shareholders as a percentage of average TCE. For a reconciliation to reported
results, please see page 49 of Citi’s 2024 Form 10-K.
3 Citigroup’s Common Equity Tier 1 (CET1) and Supplementary Leverage Ratio (SLR) reflect certain deferrals based on the modified regulatory capital transition provision related to the
Current Expected Credit Losses (CECL) standard. Excluding those deferrals, Citigroup’s CET1 Capital ratio and SLR as of December 31, 2024, would be 13.5% and 5.8%, respectively
on a fully reflected basis. Citi’s binding CET1 Capital ratio was derived under the Basel III Standardized Approach as of December 31, 2024. For additional information about the
CET1 Capital ratio and the SLR, see “Capital Resources” in Citi’s 2024 Form 10-K.
4 Banking includes revenues earned by Citigroup that are subject to a revenue-sharing arrangement with Banking – Corporate Lending for investment, Markets and Services
products sold to Corporate Lending clients.
Five core businesses each generated
positive operating leverage for the
full year
Record year in Services; continued
momentum in deepening client
relationships and winning new mandates
Markets driven by growth in Equity,
which had its highest annual revenue
in a decade, as well as momentum in
Spread Products
Continued momentum in Investment
Banking; wallet-share gains in all
products across regions and key sectors
Record year in Wealth with strong growth
in Net New Investment Assets, driving
investment fee revenue
Record year in USPB with growth driven
by cards with continued strong customer
engagement
Key financial metrics
Key highlights
Businesses snapshot
largest announced M&A transaction. We also struck an
innovative $25 billion private credit partnership with Apollo
that significantly expands our offering.
Wealth continues to focus on growing its investments
business, optimizing its expense base and improving the
client experience. Those efforts are paying off: last year was a
turning point for the business as revenues increased 7% from
the prior year and net new investment assets grew 40%. We
attracted top talent throughout the year to lead our Wealth
team. As we look ahead, there is tremendous potential with
existing clients across Citi, and we are leaning into it.
U.S. Personal Banking continued to experience strong
momentum, with the demand for borrowing driving strong
revenue growth across both cards businesses. For the
full year, revenues rose 6%. We launched several exciting
products in Branded Cards, including the enhanced Citi
Strata Premier Card and Citi Shop browser. We also extended
and expanded our iconic co-branded partnership with
American Airlines for another decade. In Retail Services, we
successfully launched a private label Dillard’s credit card
and a co-branded Dillard’s Mastercard. Additionally, we
converted four million customers to our Simplified Banking
platform in the U.S., demonstrating our commitment to
providing more seamless experiences for our customers.
Modernizing how we operate
Our strategy is producing results, but we are not standing still.
We are driving the next wave of innovation to ensure Citi stays
ahead of what our clients need from their banking partner.
We believe generative AI can drive a fundamental shift
in how we work. We have equipped our developers with
sophisticated tools to write code and launched two AI
platforms that are boosting efficiency for more than 140,000
of our colleagues. We are also integrating AI directly into
our business operations to help us make smarter decisions,
deliver insights even faster and improve client experiences.
We are determined to build one of the industry’s first AI-
ready workforces, and we are well on our way.
At the same time, we are modernizing Citi’s infrastructure for the
long term. This includes enhancing and automating controls,
digitizing processes, streamlining our tech platforms and
strengthening risk management. Our firm’s number one priority
is our Transformation. But it is not just about remediating the
2020 Consent Orders — it is about addressing decades of
underinvestment, strengthening our foundations, and ensuring
Citi is resilient and ready to lead in a digital-first world.
While we advanced key areas of the Transformation in 2024,
not all our deliverables were completed on time, as the July
regulatory enforcement actions reinforced. Specifically,
we did not make enough progress in our data quality
management and in other areas such as regulatory reporting.
These events led to a meaningful reduction in the third and
final tranche of our Transformation bonus program, which
was designed to incentivize collective accountability for
improving the firm’s risk management, controls and culture.
Although setbacks like this are disappointing, we will not
make excuses nor let them distract us from the work that
must get done. Consequently, we have reviewed our entire
data program, retooled its governance and increased our
investments in technology and talent to ensure we meet our
obligations. We will continue to focus our resources where
needed and are committed to spending whatever it takes to
get this critical work done and done right.
Ready for a new era of opportunity
While our firm is evolving, what won’t change is what has
always made Citi indispensable to clients: our unparalleled
global network, our deep expertise, and the relationships
built over more than 200 years of us advising the most
important institutions.
Today, we are seeing a new global dynamic — one shaped
by rapid technological advancement, shifting trade
flows, and a reconfiguration of economic power. While
uncertainty remains a constant, the forces of innovation,
entrepreneurship and resilience are creating extraordinary
opportunities for our clients. With our global reach and
perspective, Citi is uniquely positioned to help them navigate
and capitalize on these opportunities.
One of the biggest game-changers is AI, which is poised to
transform industries much in the same way that previous
technological leaps, including the personal computer and the
internet, once did. Around the world, AI is catalyzing major
investments in the infrastructure and energy that is required
to support the revolution ahead.
At the same time, we see many clients investing to
decarbonize their business models. Balancing sustainability
while ensuring the world’s current energy needs are met
requires significant investment and innovation, and Citi is
financing the infrastructure and clean energy solutions that
will support this transition and the increased energy demand.
Breakthroughs in health care and life sciences are also
accelerating and bringing us closer to treatments and cures
for cancer and other diseases. Citi is playing a key role in
channeling the capital to fuel this progress, connecting
investors with companies driving this innovation.
We also continue to play an important role in the changing
nature of globalization. On a local level, Citi is a growth engine
for many communities around the world, helping finance
critical infrastructure, supporting businesses and households
in their journeys to prosperity, and promoting broader access
to financial services.
On a macro level, we serve as a backbone to the global
financial system and an enabler of the global economy, which
is increasingly tilting towards the United States. The U.S.’s
unmatched capital market strength and entrepreneurship,
combined with ongoing challenges in Europe and China, have
continued to make it an attractive destination for greater
investment. And with the U.S. currently at the center of gravity,
it is clear that multinational companies will need an American-
based bank with a truly global footprint such as Citi to succeed.
As we look at the rapidly evolving world around us, we
can say with confidence that we are ready for it. We have
strategic clarity and focus, have simplified our organization,
are modernizing our infrastructure and are investing in our
talent. We are doing exactly what we said we would.
We are entering a new era — one where our focus, innovation
and excellence will set us apart. We are moving forward with
a clear sense of purpose and the confidence to turn ambition
into action. The world is changing fast, but Citi is changing
faster. We are not just keeping pace with the future; we are
helping to shape it.
Sincerely,
Jane Fraser
Chief Executive Officer, Citigroup Inc.
1.
2.
3.
4.
5.
6.
7
6
Throughout the year, we continued
to find new ways to elevate
the client experience.
Services
• Became the first global bank to enable
near-instant cross-border payments into
Mastercard debit cards in 14 receiving
markets, across 65 origination countries.
• Elevated Citi Token Services for Cash from a
pilot program to a live commercial solution,
facilitating multimillion-dollar transactions
for institutional clients.
Markets
• Increased client activity in Spread Products, as
we brought innovative transactions to market
across regions and asset classes.
• Ranked #1 in Institutional Investor poll of
buyside clients for web-based analytics of our
market-leading platform, Citi Velocity.
Banking
• Announced a landmark $25 billion private
credit, direct lending program with Apollo,
increasing clients’ access to the private lending
capital pool.
• Grew the Citi Commercial Bank by expanding
into Japan and continued the rollout of the
CitiDirect Commercial Banking platform to
elevate the client experience.
Wealth
• Launched an effort to add more Citigold
advisors to branches and provide retail clients
with tailored investment advice and guidance to
help them move up the wealth spectrum.
• Established an integrated client team to
make it simpler and more efficient to connect
the firm’s Banking clients with our wealth
management platform.
U.S. Personal Banking
• Launched the enhanced Citi Strata Premier
Card and Dillard’s private label and co-branded
credit cards.
• Extended and expanded our iconic partnership
with American Airlines, becoming the exclusive
issuer of the AAdvantage® U.S. co-branded
card portfolio in 2026 and paving the way for
more customer benefits.
Delivering for clients through our five interconnected businesses
• Finalized significant organizational
changes that eliminated management
layers and maximizes the synergies
between our five businesses.
• Completed the separation of
Banamex from our institutional
business in Mexico, a major milestone
in our effort to simplify operations
and center the bank around a
focused set of interconnected
and high-returning businesses.
• Entered a strategic, multiyear alliance
with Google Cloud to modernize our
technology infrastructure and fuel
firmwide innovation with AI.
• Kicked off the largest branch
investment and expansion in
decades, starting in Chicago and
Washington, D.C.
• Rolled out generative AI tools for
more than 140,000 employees to
increase productivity and improve
how we serve clients.
• Implemented a more systematic
approach to compliance
and continued to automate
manual controls as part of the
Transformation initiative.
• Increased investment in data
governance and quality to transform
the bank’s vast amount of data into a
competitive resource.
• Strengthened a culture of
accountability by implementing
firmwide performance and talent
management programs.
• Recruited top industry talent to
the management team, including
Tim Ryan as Head of Technology
& Business Enablement and
Vis Raghavan as Head of Banking.
A bank built
for the future
9
8
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
(Mark One)
☒
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the fiscal year ended December 31, 2024
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period from to
Commission file number 1-9924
Citigroup Inc.
(Exact name of registrant as specified in its charter)
Delaware
52-1568099
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
388 Greenwich Street, New York NY
10013
(Address of principal executive offices)
(Zip code)
(212) 559-1000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934 formatted in Inline XBRL: See Exhibit 99.01
Securities registered pursuant to Section 12(g) of the Act: none
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No o
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes o No x
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of
Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an
emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company”
in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☒
Accelerated filer ☐
Non-accelerated filer ☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or
revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Yes o
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control
over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued
its audit report. ☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing
reflect the correction of an error to previously issued financial statements. o
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received
by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No x
The aggregate market value of Citigroup Inc. common stock held by non-affiliates of Citigroup Inc. on June 30, 2024 was approximately $120.8 billion.
Number of shares of Citigroup Inc. common stock outstanding on January 31, 2025: 1,884,479,551
Documents Incorporated by Reference: Portions of the registrant’s proxy statement for the annual meeting of stockholders scheduled to be held on April 29,
2025 are incorporated by reference in this Form 10-K in response to Items 10, 11, 12, 13 and 14 of Part III.
Available on the web at www.citigroup.com
FORM 10-K CROSS-REFERENCE INDEX
Item Number
Page
Part I
1.
Business
4–32, 130–135,
137, 169–173,
314–315
1A.
Risk Factors
50–64
1B.
Unresolved Staff Comments
Not Applicable
1C.
Cybersecurity
56–58, 119–121
2.
Properties
Not Applicable
3.
Legal Proceedings—See
Note 30 to the Consolidated
Financial Statements
301–308
4.
Mine Safety Disclosures
Not Applicable
Part II
5.
Market for Registrant’s
Common Equity, Related
Stockholder Matters and
Issuer Purchases of Equity
Securities
146–147, 179–181,
316–318
6.
Reserved
7.
Management’s Discussion
and Analysis of Financial
Condition and Results of
Operations
7–32, 70–129
7A.
Quantitative and Qualitative
Disclosures About Market
Risk
70–129, 174–178,
198–238, 245–292
8.
Financial Statements and
Supplementary Data
142–313
9.
Changes in and
Disagreements with
Accountants on Accounting
and Financial Disclosure
Not Applicable
9A.
Controls and Procedures
135–136
9B.
Other Information
317
9C.
Disclosure Regarding
Foreign Jurisdictions that
Prevent Inspections
Not Applicable
Part III
10.
Directors, Executive Officers
and Corporate Governance
319–321*
11.
Executive Compensation
**
12.
Security Ownership of
Certain Beneficial Owners
and Management and
Related Stockholder Matters
***
13.
Certain Relationships and
Related Transactions, and
Director Independence
****
14.
Principal Accountant Fees
and Services
*****
Part IV
15.
Exhibit and Financial
Statement Schedules
* For additional information regarding Citigroup’s Directors, see
“Corporate Governance” and “Proposal 1: Election of Directors” in
the definitive Proxy Statement for Citigroup’s Annual Meeting of
Stockholders scheduled to be held on April 29, 2025, to be filed
with the SEC (the Proxy Statement), incorporated herein by
reference.
** See “Compensation Discussion and Analysis,” “The Personnel and
Compensation Committee Report,” and “2024 Summary
Compensation Table and Compensation Information” and “CEO
Pay Ratio” in the Proxy Statement, incorporated herein by
reference, other than disclosure under the heading “Pay versus
Performance” information responsive to Item 402(v) of Regulation
S-K of SEC rules.
*** See “About the Annual Meeting,” “Stock Ownership” and “Equity
Compensation Plan Information” in the Proxy Statement,
incorporated herein by reference.
**** See “Corporate Governance—Director Independence,” “—Certain
Transactions and Relationships, Compensation Committee
Interlocks and Insider Participation” and “—Indebtedness” in the
Proxy Statement, incorporated herein by reference.
***** See “Proposal 2: Ratification of Selection of Independent
Registered Public Accountants” in the Proxy Statement,
incorporated herein by reference.
2
CITIGROUP’S 2024 ANNUAL REPORT ON FORM 10-K
OVERVIEW
4
Citigroup Reportable Operating Segments
6
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
7
Executive Summary
7
Citi’s Multiyear Transformation
11
Summary of Selected Financial Data
14
Segment Revenues and Income (Loss)
16
Select Balance Sheet Items by Segment
17
Services
18
Markets
21
Banking
23
Wealth
25
U.S. Personal Banking
27
All Other—Divestiture-Related Impacts (Reconciling Items)
29
All Other—Managed Basis
30
CAPITAL RESOURCES
33
RISK FACTORS
50
NET ZERO AND SUSTAINABILITY
65
HUMAN CAPITAL RESOURCES AND MANAGEMENT
66
Managing Global Risk—Table of Contents
69
MANAGING GLOBAL RISK
70
SIGNIFICANT ACCOUNTING POLICIES AND
SIGNIFICANT ESTIMATES
130
DISCLOSURE CONTROLS AND PROCEDURES
135
MANAGEMENT’S ANNUAL REPORT ON INTERNAL
CONTROL OVER FINANCIAL REPORTING
136
FORWARD-LOOKING STATEMENTS
137
REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM (PCAOB ID # 185)
138
Financial Statements and Notes—Table of Contents
141
CONSOLIDATED FINANCIAL STATEMENTS
142
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
150
FINANCIAL DATA SUPPLEMENT
313
SUPERVISION, REGULATION AND OTHER
314
OTHER INFORMATION
317
CORPORATE INFORMATION
319
Executive Officers
319
Citigroup Board of Directors
321
GLOSSARY OF TERMS AND ACRONYMS
322
EXHIBIT INDEX
327
SIGNATURES
332
3
OVERVIEW
Citigroup’s history dates back to the founding of the City
Bank of New York in 1812.
Citigroup is a global diversified financial services holding
company whose businesses provide consumers, corporations,
governments and institutions with a broad, yet focused, range
of financial products and services, including consumer
banking and credit, corporate and investment banking,
securities brokerage, trade and securities services and wealth
management. Citi does business in nearly 160 countries and
jurisdictions.
Citi’s vision is to be the preeminent banking partner for
institutions with cross-border needs, a global leader in wealth
management and a valued personal bank in the U.S.
At December 31, 2024, Citi had approximately 229,000
full-time employees, compared to approximately 239,000 at
December 31, 2023. For additional information, see “Human
Capital Resources and Management” below.
Throughout this report, “Citigroup,” “Citi” and “the
Company” refer to Citigroup Inc. and its consolidated
subsidiaries. All “Note” references correspond to the Notes to
the Consolidated Financial Statements herein, unless
otherwise indicated.
For a list of certain terms and acronyms used in this
Annual Report on Form 10-K and other Citigroup
presentations, see “Glossary of Terms and Acronyms” at the
end of this report.
Additional Information
Additional information about Citigroup is available on Citi’s
website at www.citigroup.com. Citigroup’s annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports on
Form 8-K and proxy statements, as well as other filings with
the U.S. Securities and Exchange Commission (SEC) are
available free of charge through Citi’s website by clicking on
“SEC Filings” under the “Investors” tab. The SEC’s website
also contains these filings and other information regarding Citi
at www.sec.gov.
For a discussion of 2023 versus 2022 results of operations
of Services, Markets, Banking, Wealth, U.S. Personal Banking
and All Other, see each respective business’s results of
operations in Citigroup’s Annual Report on Form 10-K for the
year ended December 31, 2023 (Citigroup’s 2023 Annual
Report on Form 10-K).
Certain reclassifications have been made to the prior
periods’ financial statements and disclosures to conform to the
current period’s presentation, including certain
reclassifications to align with Citi’s organizational
simplification and strategy, for all periods presented.
Please see “Risk Factors” below for a discussion of
material risks and uncertainties that could impact
Citigroup’s businesses, results of operations and financial
condition.
Non-GAAP Financial Measures
Citi prepares its financial statements in accordance with U.S.
generally accepted accounting principles (GAAP) and also
presents certain non-GAAP financial measures (non-GAAP
measures) that exclude certain items or otherwise include
components that differ from the most directly comparable
measures calculated in accordance with U.S. GAAP. These
non-GAAP financial measures are not intended to be a
substitute for GAAP financial measures and may not be
defined or calculated the same way as non-GAAP measures
with similar names used by other companies.
Citi’s non-GAAP financial measures in this Form 10-K
include:
•
Revenues excluding the Argentina currency devaluation
and/or divestiture-related impacts
•
Expenses excluding the Federal Deposit Insurance
Corporation (FDIC) special assessment and/or divestiture-
related impacts
•
Services and Treasury and Trade Solutions (TTS)
revenues and/or non-interest revenues excluding the
impact of the Argentina currency devaluation
•
Banking and Corporate Lending revenues excluding gain
(loss) on loan hedges
•
All Other (managed basis), which excludes divestiture-
related impacts
•
Tangible common equity (TCE), return on tangible
common equity (RoTCE) and tangible book value per
share (TBVPS)
•
Non-Markets net interest income
For more information on the Argentina currency
devaluation and/or the FDIC special assessment, see
“Executive Summary” below. Citi believes its results
excluding the Argentina currency devaluation and the FDIC
special assessment are useful to investors, industry analysts
and others in evaluating Citi’s results of operations and
comparing its operational performance between periods, by
providing a meaningful depiction of the underlying
fundamentals of period-to-period operating results,
particularly given the outsized impacts of these items, as well
as additional comparability to peer companies.
Citi’s results excluding divestiture-related impacts
represent as reported, or GAAP, financial results adjusted for
items that are incurred and recognized, which are wholly and
necessarily a consequence of actions taken to sell (including
through a public offering), dispose of or wind down business
activities associated with Citi’s previously announced exit
markets within All Other—Legacy Franchises. Citi’s Chief
Executive Officer, its chief operating decision maker,
regularly reviews financial information for All Other on a
managed basis that excludes these divestiture-related impacts.
For more information on Citi’s results excluding divestiture-
related impacts, see “Executive Summary” and “All Other—
Divestiture-Related Impacts (Reconciling Items)” below.
Citi believes its results excluding divestiture-related
impacts are useful to investors, industry analysts and others in
evaluating Citi’s results of operations and comparing its
operational performance between periods, by providing a
meaningful depiction of the underlying fundamentals of
4
period-to-period operating results, particularly given the
outsized impacts of the divestiture-related impacts; improved
visibility into management decisions and their impacts on
operational performance; and additional comparability to peer
companies.
For more information on Services and TTS revenues and/
or non-interest revenues excluding the impact of the Argentina
currency devaluation, see “Executive Summary” and
“Services” below.
For more information on Banking and Corporate Lending
revenues excluding gain (loss) on loan hedges, see “Executive
Summary” and “Banking” below. Citi believes that Banking
and Corporate Lending revenues excluding gain (loss) on loan
hedges are useful to investors, industry analysts and others
because the gain (loss) on loan hedges are independent of
Banking and Corporate Lending’s core operations and not
indicative of the performance of the business operations.
For more information on TCE, RoTCE and TBVPS, see
“Capital Resources—Tangible Common Equity, Book Value
Per Share, Tangible Book Value Per Share and Return on
Equity” below. TCE, RoTCE and TBVPS are used by
management, as well as investors, industry analysts and
others, in assessing Citi’s use of equity. Citi believes TCE and
RoTCE are useful to investors, industry analysts and others by
providing alternative measures of capital strength and
performance. Citi believes TBVPS provides additional useful
information about the level of tangible assets in relation to
Citi’s outstanding shares of common stock.
For more information on non-Markets net interest income,
see “Market Risk—Non-Markets Net Interest Income” below.
Management uses non-Markets net interest income to assess
the performance of Citi’s lending, investing (including asset-
liability management) and deposit-raising activities, apart
from any volatility associated with Markets activities. Citi
believes the use of this non-GAAP measure provides
investors, industry analysts and others with an alternative
measure to analyze the net interest income trends of Citi’s
lending, investing and deposit-raising activities, by providing
a meaningful depiction of the underlying fundamentals of
period-to-period operating results of those activities; improved
visibility into management decisions and their impacts on
operational performance; and additional comparability to peer
companies.
5
Citigroup is managed pursuant to five operating segments: Services, Markets, Banking, Wealth and U.S. Personal Banking. Activities
not assigned to the operating segments are included in All Other. For additional information, see the results of operations for each of
the operating segments and All Other within “Management’s Discussion and Analysis of Financial Condition and Results of
Operations” below.
Note: Mexico is included in LATAM within International.
(1) Within International, Citi is organized into six clusters: United Kingdom; Japan, Asia North and Australia (JANA); Latin America (LATAM); Asia South;
Europe; and Middle East and Africa (MEA). Although the chief operating decision maker (CODM) does not manage Citi’s reportable operating segments by
cluster, Citi provides additional selected financial information (revenue and certain corporate credit metrics) below for the six clusters within International.
6
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
EXECUTIVE SUMMARY
As described further throughout this Executive Summary, Citi
demonstrated improved overall business performance and
continued progress on its strategic priorities in 2024:
•
Citi and its five reportable operating segments each
achieved positive operating leverage for 2024. Citi’s
positive operating leverage in 2024 was driven by revenue
growth of 3%, with record revenues in Services, Wealth
and USPB, and disciplined expense management (down
4%), despite higher volume- and transformation-related
expenses and other investments in risk and control
initiatives. Excluding the impact of the FDIC special
assessment in both 2024 and the prior year, expenses
decreased 2%.
•
Citi continued to advance its transformation, including its
efforts to improve risk management, modernize
technology and infrastructure and improve resiliency
across the organization. Simultaneously, as a result of the
July 2024 Civil Money Penalty Consent Orders and
Consent Order Amendment, Citi recognized the need to
accelerate progress in certain areas, particularly with
regard to data quality management related to governance
and regulatory reporting. (See “Citi’s Multiyear
Transformation” below).
•
Citi completed its organizational simplification
announced in September 2023, resulting in a simpler
management structure that aligns to and facilitates Citi’s
strategy, while improving accountability and decision-
making and advancing the execution of Citi’s
transformation.
•
As part of its strategic refresh, Citi continued to make
progress on its remaining divestitures, including exits of
its consumer banking operations in Korea and Poland and
its overall operations in Russia. Additionally, Citi
completed the separation of its Services, Markets,
Banking and Wealth businesses in Mexico from its
consumer banking and small business and middle-market
banking operations in Mexico (Mexico Consumer/
SBMM) in December 2024, an important milestone
toward the planned initial public offering (IPO) of Citi’s
Mexico Consumer/SBMM business. (See “All Other
(Managed Basis)” below.)
•
Citi returned $6.7 billion to common shareholders in the
form of dividends ($4.2 billion) and share repurchases
($2.5 billion) in 2024. As previously disclosed, on
January 13, 2025, Citigroup’s Board of Directors
authorized a new, multiyear $20 billion common stock
repurchase program, with planned repurchases of $1.5
billion during the first quarter of 2025, subject to market
conditions and other factors. After the first quarter of
2025, Citi will continue to assess the level of common
share repurchases on a quarter-by-quarter basis given
uncertainty regarding regulatory capital requirements,
among other factors.
2024 Results Summary
Citigroup
Citigroup reported net income of $12.7 billion, or $5.94 per
share. This compared to net income of $9.2 billion, or $4.04
per share in the prior year, which included larger impacts from
certain notable items, including an Argentina currency
devaluation, an FDIC special assessment, restructuring
charges related to Citi’s organizational simplification and an
ACL build for transfer risk (see “Cost of Credit” below).
Net income increased 37% versus the prior year, driven
by the higher revenues, lower expenses and a lower effective
tax rate, partially offset by higher cost of credit. Citigroup’s
effective tax rate was 25% in 2024 versus 27% in the prior
year, largely driven by the geographic mix of earnings (see
Note 10).
Citigroup revenues of $81.1 billion in 2024 increased 3%
on a reported basis. This increase in revenues largely reflected
an increase in non-interest revenue (up 15%), including the
benefit of a smaller impact from the Argentina currency
devaluation ($(253) million in 2024 versus approximately
$(1.9) billion in 2023) as well as strength in underlying fee
drivers in each of Citi’s reportable operating segments. The
increase in non-interest revenue was partially offset by a
decline in net interest income (down 1%). The decrease in net
interest income primarily reflected lower revenues in All Other
(managed basis), partially offset by higher interest-earning
balance growth in U.S. Personal Banking (USPB). Excluding
divestiture-related impacts, primarily related to gains on the
sales of Citi’s India and Taiwan consumer banking businesses
in the prior year, as well as the Argentina currency
devaluation, revenues of $81.4 billion in 2024 also increased
3% versus the prior year.
Citigroup’s end-of-period loans were $694 billion, up 1%
versus the prior year, largely driven by loan growth in USPB.
Citigroup’s end-of-period deposits were approximately
$1.3 trillion, down 2% versus the prior year, largely due to a
decrease in All Other (managed basis). For additional
information about Citi’s deposits by business, including
drivers and deposit trends, see each respective business’s
results of operations and “Liquidity Risk— Deposits” below.
Expenses
Citigroup’s operating expenses of $54.0 billion decreased 4%
from the prior year. Excluding the FDIC special assessment
($203 million in 2024 versus approximately $1.7 billion in the
prior year), expenses of $53.8 billion decreased 2%, driven by
savings related to Citi’s organizational simplification and
stranded cost reduction, as well as the lower restructuring
charges ($259 million in 2024 versus $781 million in the prior
year) and repositioning costs. The decrease was partially offset
by higher volume-related expenses, investments in Citi’s
transformation and other risk and controls initiatives, as well
as the costs of the July 2024 Civil Money Penalty Consent
Orders entered into with the Federal Reserve Board (FRB) and
the Office of the Comptroller of the Currency (OCC).
7
Excluding the FDIC special assessment and divestiture-related
impacts, expenses of $53.5 billion also decreased 2%.
Cost of Credit
Citi’s total provisions for credit losses and for benefits and
claims was $10.1 billion, compared to $9.2 billion in the prior
year. The increase was driven by higher net credit losses in
Branded Cards and Retail Services in USPB, reflecting the
continued maturation of multiple cards loan vintages
originated in recent years. The maturation was delayed by
unprecedented levels of government stimulus during the
pandemic. In addition, the increase was due to macroeconomic
pressures related to the elevated inflationary and interest rate
environment impacting both card portfolios, with lower FICO
band customers primarily driving the increase. The higher net
credit losses were partially offset by a lower net build in the
allowance for credit losses (ACL), primarily due to a smaller
build related to transfer risk associated with exposures outside
the U.S. (approximately $0.2 billion in 2024 versus $1.9
billion in 2023), driven by safety and soundness
considerations under U.S. banking law. For additional
information on Citi’s ACL, see “Significant Accounting
Policies and Significant Estimates—Citi’s Allowance for
Credit Losses (ACL)” below.
Net credit losses of $9.0 billion increased 40% from the
prior year. Consumer net credit losses of $8.6 billion increased
39%, largely reflecting the continued rise in net credit loss
rates in Branded Cards and Retail Services. Corporate net
credit losses increased to $397 million from $250 million in
the prior year.
Subject to evolving macroeconomic conditions, Citi
expects to continue to experience an elevated net credit loss
rate for full-year 2025 in line with 2024, with higher loss rates
in the first half of the year in Branded Cards and Retail
Services consistent with seasonal patterns. Citi also expects
that its future ACL builds will be driven by both the
macroeconomic environment and business volumes, among
other factors. For additional information on Citi’s consumer
and corporate credit costs, see each respective business’s
results of operations and “Credit Risk” below.
In January 2025, a series of wildfires affected the Los
Angeles metropolitan area and surrounding regions, causing
loss of life and the destruction of more than 16,000 structures.
While Citi continues to assess the wildfires’ impact on its
customers and clients in the affected areas, Citi does not
currently expect the wildfires to have a direct material impact
to its consumer or corporate credit portfolios or its overall
results of operations.
Capital
Citigroup’s CET1 Capital ratio was 13.6% as of December 31,
2024, compared to 13.4% as of December 31, 2023, based on
the Basel III Standardized Approach for determining risk
weighted assets (RWA). The increase was primarily driven by
net income and a decrease in RWA, partially offset by the
payment of common and preferred dividends, as well as
common share repurchases and net adverse movements in
Accumulated other comprehensive income (AOCI).
In 2024, Citi repurchased $2.5 billion of common shares
and paid $4.2 billion of common dividends (see “Unregistered
Sales of Equity Securities, Repurchases of Equity Securities
and Dividends” below).
For additional information on capital-related risks, trends
and uncertainties, see “Capital Resources—Regulatory Capital
Standards and Developments” and “Risk Factors—Strategic
Risks,” “—Operational Risks” and “—Compliance Risks”
below.
Citigroup’s Supplementary Leverage ratio as of
December 31, 2024 was 5.8%, largely unchanged from
December 31, 2023, as higher Tier 1 Capital was offset by an
increase in Total Leverage Exposure. For additional
information on Citi’s capital ratios and related components,
see “Capital Resources” below.
Services
Services net income of $6.5 billion increased 40%, as higher
revenue and lower cost of credit were partially offset by higher
expenses.
Services revenues of $19.6 billion increased 9%, largely
driven by a 28% increase in non-interest revenue and higher
net interest income (up 1%). Excluding the impact of the
Argentina currency devaluation ($(178) million in 2024 versus
approximately $(1.2) billion in 2023), Services revenues
increased 3% and its non-interest revenue increased 5%. The
increase in net interest income reflected the benefit of higher
deposit and loan volumes, largely offset by a decline in
interest rates in Argentina.
TTS revenues of $14.5 billion increased 6% on a reported
basis, driven by a 37% increase in non-interest revenue,
partially offset by a 1% decrease in net interest income.
Excluding the impact of the Argentina currency devaluation
(approximately $(164) million in 2024 and approximately
$(1.0) billion in 2023), non-interest revenue increased 3%,
driven by an increase in cross-border transaction value, as well
as an increase in U.S. dollar clearing and commercial card
spend volume. The decrease in TTS net interest income was
primarily driven by the decline in interest rates in Argentina.
Securities Services revenues of $5.1 billion increased
17%, driven by an 18% increase in non-interest revenue and a
15% increase in net interest income. The growth in non-
interest revenue was primarily due to increased fees from
higher AUC/AUA balances and continued elevated levels of
corporate activity in Issuer Services, as well as the smaller
impact from the currency devaluation in Argentina. The
increase in net interest income was primarily due to higher
spreads and volumes.
Services expenses of $10.6 billion increased 6%,
primarily driven by continued investments in technology and
platform modernization, other risk and controls and product
innovation, as well as an Argentina-related transaction tax
expense and higher legal expenses, partially offset by the
impact of productivity savings. Cost of credit decreased to
$276 million from $950 million in the prior year, primarily
driven by a smaller ACL build for transfer risk associated with
exposures outside of the U.S., driven by safety and soundness
considerations under U.S. banking law.
For additional information on the results of operations of
Services in 2024, see “Services” below.
8
Markets
Markets net income of $4.9 billion increased 27%, driven by
higher revenues, partially offset by higher cost of credit.
Markets revenues of $19.8 billion increased 6%, driven
by a 26% increase in Equity Markets and a 1% increase in
Fixed Income Markets. The increase in Equity Markets was
primarily driven by growth in cash equities, due to higher
client activity and volumes, and equity derivatives on higher
volatility, which also included the impact from an episodic
gain related to the Visa B exchange. The increase was also
driven by an increase in prime services. The increase in Fixed
Income Markets was driven by growth in spread products and
other fixed income (up 20%), partially offset by lower
revenues in rates and currencies (down 6%). The increase in
spread products and other fixed income revenues was largely
driven by increased client activity due to growth in asset-
backed financing, securitization activity and underwriting fees,
partially offset by a decline in commodities revenues. The
decline in rates and currencies revenues was primarily due to
lower volatility and a strong prior-year performance, partially
offset by the smaller impact of the Argentina currency
devaluation.
Markets expenses of $13.2 billion were largely unchanged
versus the prior year, as higher legal and volume-related
expenses were offset by productivity savings. Cost of credit
increased to $463 million from $438 million in the prior year,
primarily driven by higher net credit losses for loans in spread
products, partially offset by a smaller ACL build on other
assets for transfer risk associated with exposures outside the
U.S., driven by safety and soundness considerations under
U.S. banking law.
For additional information on the results of operations of
Markets in 2024, see “Markets” below.
Banking
Banking net income was $1.5 billion, compared to a net loss of
$35 million in the prior year, driven by higher revenues, lower
expenses and a higher benefit from cost of credit.
Banking revenues of $6.2 billion increased 32%,
including a $180 million loss on loan hedges in 2024 versus a
$443 million loss on loan hedges in the prior year. Excluding
the losses on loan hedges, Banking revenues of $6.4 billion
increased 24%, reflecting higher Investment Banking and
Corporate Lending revenues. Investment Banking revenues of
$3.6 billion increased 38%, due to a rebound in overall wallet
activity and wallet share gains across all products. Corporate
Lending revenues increased 23%, including the impact of
losses on loan hedges. Excluding the impact of losses on loan
hedges, Corporate Lending revenues increased 9%, primarily
driven by a smaller impact from the Argentina currency
devaluation.
Banking expenses of $4.5 billion decreased 8%, primarily
driven by benefits of prior repositioning and other actions to
lower the expense base, partially offset by higher volume-
related expenses. Cost of credit was a benefit of $224 million,
compared to a benefit of $143 million in the prior year, driven
by an ACL release on other assets, primarily due to lower
transfer risk associated with exposures outside the U.S., driven
by safety and soundness considerations under U.S. banking
law.
For additional information on the results of operations of
Banking in 2024, see “Banking” below.
Wealth
Wealth net income of $1.0 billion increased 139%, reflecting
higher revenues, lower expenses and a higher benefit from
cost of credit.
Wealth revenues of $7.5 billion increased 7%, largely
driven by higher non-interest revenue (up 15%), reflecting
higher investment fee revenues in Citigold, Wealth at Work
and the Private Bank on growth in client investment assets, as
well as an increase in net interest income (up 2%). The
increase in net interest income was mainly due to higher
average deposit spreads and volumes, partially offset by
higher mortgage funding costs in the Private Bank and Wealth
at Work.
Wealth expenses decreased 2% to $6.4 billion, primarily
driven by benefits from prior repositioning and restructuring
actions, partially offset by higher volume-related expenses and
technology investments focused on risk and controls and
platform enhancements. Cost of credit was a net benefit of
$126 million, compared to a net benefit of $3 million in the
prior year, largely driven by a higher net ACL release due to a
change in the ACL associated with the margin lending
portfolio.
For additional information on the results of operations of
Wealth in 2024, see “Wealth” below.
U.S. Personal Banking
USPB net income of $1.4 billion decreased 24%, driven by
higher cost of credit, partially offset by higher revenues and
lower expenses.
USPB revenues of $20.4 billion increased 6%, due to
higher net interest income (up 5%), driven by strong loan
growth, primarily in cards, as well as higher non-interest
revenue (up 24%) due to lower partner payments in Retail
Services. Branded Cards revenues of $10.7 billion increased
7%, primarily driven by higher net interest income, reflecting
interest-earning balance growth (up 9%) from lower payment
rates and card spend volume growth. Retail Services revenues
of $7.1 billion increased 8%, primarily driven by higher non-
interest revenue due to the lower partner payments, as a result
of higher net credit losses, as well as higher net interest
income on growth in interest-earning balances (up 3%). Retail
Banking revenues of $2.6 billion decreased 1%, primarily
driven by the impact of the transfers of certain relationships
and the associated deposit balances to Wealth, partially offset
by higher deposit spreads, as well as mortgage and installment
loan growth.
USPB expenses of $10 billion decreased 1%, primarily
driven by continued productivity savings and lower
technology costs, partially offset by higher volume-related
expenses. Cost of credit increased to $8.6 billion, compared to
$6.7 billion in the prior year. The increase was driven by
higher net credit losses (up 45%), primarily reflecting the
continued maturation of multiple cards loan vintages
originated in recent years, as well as macroeconomic pressures
related to the elevated inflationary and interest rate
environment impacting both cards portfolios, with lower FICO
band customers primarily driving the increase. The higher net
9
credit losses were partially offset by a lower ACL build for
loans.
For additional information on the results of operations of
USPB in 2024, see “U.S. Personal Banking” below.
All Other (Managed Basis)
All Other (managed basis) net loss was $2.4 billion, compared
to a net loss of $2.1 billion in the prior year, driven by lower
revenues and lower income tax benefits, partially offset by
lower expenses and lower cost of credit.
All Other (managed basis) revenues decreased 20%,
driven by lower revenues in Corporate/Other and Legacy
Franchises. The decline in Corporate/Other was largely driven
by net investment securities losses due to the repositioning of
the investment securities portfolio and higher funding costs.
Legacy Franchises (managed basis) revenues declined 6%, due
to lower revenues in Asia Consumer (managed basis) and
Legacy Holdings Assets, partially offset by higher revenues in
Mexico Consumer/SBMM (managed basis).
All Other (managed basis) expenses decreased 19%,
primarily driven by the lower FDIC special assessment ($203
million in 2024 versus approximately $1.7 billion in the prior
year) and a reduction from the closed exits and wind-downs,
as well as the lower restructuring charges ($259 million in
2024 versus $781 million in 2023), partially offset by the civil
money penalties imposed by the FRB and OCC in July 2024.
Cost of credit was $1.1 billion, compared to $1.3 billion in the
prior year, largely driven by a smaller ACL build for transfer
risk associated with exposures outside the U.S., driven by
safety and soundness considerations under U.S. banking law.
For additional information on the results of operations of
All Other (managed basis) in 2024, see “All Other—
Divestiture-Related Impacts (Reconciling Items)” and “All
Other (Managed Basis)” below.
Macroeconomic and Other Risks and Uncertainties
Various macroeconomic, geopolitical and regulatory
uncertainties and challenges pose risks to economic conditions
in the U.S. and globally, including, among others, any
resurgence in inflation; changes to trade, immigration, energy
and other policies resulting from the new U.S. administration;
changes in interest rate policies; the Russia–Ukraine war;
conflicts in the Middle East; and economic conditions and
tensions involving China.
For example, on February 1, 2025 the new U.S.
administration announced the imposition of new tariffs on
imports from China, Mexico and Canada, although the tariffs
for Mexico and Canada were delayed for 30 days. China
responded with tariffs against certain imports from the U.S.
Additionally, on February 10, 2025, the U.S. administration
announced global 25% tariffs on steel and aluminum imports.
The U.S. administration has also announced plans for
reciprocal tariffs on all U.S. trading partners. While the
resulting impacts are difficult to predict at this time, these and
other tariffs, whether imposed by the U.S. or by any other
country, may result in disruption of supply chains, increased
inflationary pressures and higher interest rates.
These and other risks could negatively impact economic
growth rates and unemployment levels in the U.S. and other
countries and result in volatility and disruptions in financial
markets. Such risks could also adversely affect Citi’s
customers, clients, businesses, funding costs, cost of credit and
overall results of operations and financial condition during
2025. For a further discussion of trends, uncertainties and risks
that will or could impact Citi’s businesses, results of
operations, capital and other financial condition during 2025,
see “Executive Summary” above and “Risk Factors,” each
respective business’s results of operations and “Managing
Global Risk,” including “Managing Global Risk—Other Risks
—Country Risk—Russia” and “—Argentina,” below.
10
CITI’S MULTIYEAR TRANSFORMATION
Overview
As previously disclosed, Citi’s transformation, including the
remediation of its consent orders with the FRB and OCC, is a
multiyear endeavor that is not linear. Citi is modernizing and
simplifying the Company in order to lead in a dynamic,
competitive and digital world. Citi’s transformation is
addressing decades of underinvestment in its infrastructure,
going beyond remedying regulatory concerns to intentionally
transform how the organization operates, and making
investments that not only support current needs, but also
benefit the Company over the long term.
Transformation efforts of this scale involve significant
complexities and uncertainties, including ongoing regulatory
challenges and risks. As discussed in the “Executive
Summary” above, on July 10, 2024, the FRB entered into a
Civil Money Penalty Consent Order with Citigroup, and the
OCC entered into a Civil Money Penalty Consent Order with
Citibank (collectively, the 2024 Consent Orders). In addition,
the OCC and Citibank entered into an Amendment (the
Amendment) to the October 7, 2020 Consent Order. For
additional information about the 2024 Consent Orders and the
Amendment, see Citi’s July 10, 2024 Form 8-K and
“Transformation Focus Areas and Status” and “FRB and OCC
Consent Orders Compliance” below.
Citi may continue to experience significant challenges in
progressing the transformation and satisfying the regulators’
expectations in both sufficiency and timing, particularly with
regard to data quality management related to governance and
regulatory reporting. The regulators may also identify
additional risk and control issues that could result in further
regulatory actions. For additional information about these
regulatory risks, see “Risk Factors—Compliance Risks”
below.
Notwithstanding the 2024 Consent Orders and the
Amendment, Citi’s transformation target outcomes remain
focused on changing its business and operating models such
that they simultaneously (i) strengthen controls, enhance data
quality, reduce risk and improve Citi’s regulatory compliance
and its culture, and (ii) enhance Citi’s value to customers,
clients and shareholders.
Transformation Focus Areas and Status
Over the last several years, Citi has made key investments to,
among other things, consolidate and modernize its
infrastructure, simplify and automate manual processes, and
enhance technology, data and analytics. In particular, Citi’s
transformation-related expenses include costs related to risk
and controls, data and finance programs and other 2020
Consent Order programs, as well as spending on certain other
regulatory initiatives unrelated to the 2020 Consent Orders,
and spending on enterprise-wide technology infrastructure and
the Transformation Bonus Program (see below).
Citi completed significant planning and foundational
work for the transformation in 2021 and 2022. In 2023, Citi
progressed its transformation efforts into implementation
mode and those efforts continued in 2024.
In 2024, Citi’s transformation-related expenses increased
1% to approximately $2.9 billion from the prior year, largely
driven by increased spending on certain programs, including
data, largely offset by a reduction in the payout under the
Transformation Bonus Program.
Citi’s transformation initiatives will continue to entail
significant investments during 2025 and beyond. Citi’s
transformation initiatives in 2025 will continue to focus on (i)
automating regulatory processes and remediating data quality
issues, particularly related to regulatory reporting, and (ii)
further strengthening stress testing and resolution and recovery
capabilities.
Progress
Notwithstanding Citi’s investments and remediation efforts, as
set forth in the FRB’s 2024 Civil Money Penalty Consent
Order, the FRB found that, based on examinations conducted
by the Federal Reserve Bank of New York, Citigroup had
ongoing deficiencies related to its data quality management
program and inadequate measures for managing and
controlling its data quality risks. In addition, as set forth in the
OCC’s 2024 Civil Money Penalty Consent Order and the
Amendment, the OCC deemed that Citibank had failed to
make sufficient and sustainable progress toward achieving
compliance with the OCC’s 2020 Consent Order. As a result,
Citi has made changes to its governance and structure of its
data program as well as increased the level of investment in
the program. For additional information about Citi’s
transformation investments, see “Transformation Focus Areas
and Status” above.
Despite the ongoing regulatory challenges and risks,
Citi’s transformation progress includes the following:
Improved Risk Management
•
Closed the 2013 Consent Order with the FRB related to
anti-money laundering and Bank Secrecy Act deficiencies
•
Built greater efficiency and scale in the risk management
of Citi’s global spread products business, with 99% of
risk computations now occurring on cloud-based
infrastructure
•
Approximately 90% of derivative trades now subject to
full revaluation each month using automated independent
price verification
•
Approximately 76% of all product data onboarded to
strategic data redistribution platforms with stronger data
quality controls
•
Consolidated four new activity risk management
platforms into one modern platform
•
Implemented key technology capabilities for target state
wholesale credit analysis, simplifying the process and
execution of policy requirements
•
Faster and more frequent stress testing for geopolitical
risks, natural disasters and industry-specific events
Modernization
•
Retired or replaced 714 legacy applications in 2024 with
new, modern applications
•
Launched a new regulatory reporting platform with
advanced capabilities to improve quality and efficiency
11
•
Scaled automated controls in Markets, including
transaction monitoring (over 750 million trading records
monthly) and Regulation W compliance (approximately
400,000 transactions monthly)
•
Consolidated 20 cash equities platforms into one modern
platform
•
Reduced time to book new or amended loans in North
America by over 50%
Resiliency
•
Improved resiliency and reduced downtime by
simplifying system restoration to a single click for
approximately 26% of critical applications
•
Reduced data center consumption through migration of
workload to a private cloud and streamlined and reduced
the time involved in the cloud onboarding process from
over seven weeks to two weeks
•
Upgraded 100% of Citi’s more than 2,300 ATMs in North
America, Singapore, Hong Kong and the UAE to next-
generation software for better customer security and
monitoring
Organizational Simplification
During the first quarter of 2024, Citi completed its
organizational simplification announced in September 2023.
The result is a simpler management structure that aligns to and
facilitates Citi’s strategy, while improving accountability and
decision-making. Citi’s operating model changes included
elimination of the Institutional Clients Group, Personal
Banking and Wealth Management and Legacy Franchises
operating segments and resulted in the five current reportable
operating segments—Services, Markets, Banking, Wealth and
U.S. Personal Banking—and a new financial reporting
structure. Activities not assigned to the reportable operating
segments are reflected in All Other, including Legacy
Franchises and Corporate/Other. Citi also exited certain
institutional business lines and consolidated its regional
structure from four to two regions, consisting of North
America and International. Citi’s organizational simplification
efforts also assist in advancing the execution of the
transformation.
FRB and OCC Consent Orders Compliance
As previously disclosed, on July 10, 2024, the FRB entered
into a Civil Money Penalty Consent Order with Citigroup in
the amount of approximately $61 million, and the OCC
entered into a Civil Money Penalty Consent Order with
Citibank, a wholly owned subsidiary of Citigroup, in the
amount of $75 million. The OCC and Citibank also entered
into an Amendment to the October 7, 2020 OCC Consent
Order. The Amendment requires Citibank to formalize a
process to determine whether sufficient resources are being
appropriately allocated toward achieving timely and
sustainable compliance with the OCC’s 2020 Consent Order,
including any requirements on which Citibank is not making
sufficient and sustainable progress (such process, the Resource
Review Plan). Copies of the 2024 Consent Orders and the
Amendment were included as exhibits to Citi’s July 10, 2024
Form 8-K. For additional information regarding the 2024
Consent Orders and the Amendment, see the July 10, 2024
Form 8-K.
As discussed above, Citi’s transformation efforts include
effective implementation of the October 7, 2020 FRB and
OCC Consent Orders issued to Citigroup and Citibank,
respectively. The 2020 Consent Orders require Citigroup and
Citibank to implement extensive targeted action plans and
submit quarterly progress reports on a timely and sufficient
basis, detailing the results and status of improvements relating
principally to various aspects of (i) enterprise-wide risk
management, (ii) compliance risk management, (iii) data
quality management related to governance, and (iv) internal
controls. Citi continues to work constructively with the FRB
and OCC and provide additional information regarding its
plans and progress to both regulators on an ongoing basis. Citi
will continue to reflect their feedback in its project plans and
execution efforts. Although there are no restrictions on Citi’s
ability to serve its clients, the 2020 OCC Consent Order
requires Citibank to obtain prior approval of any significant
new acquisition, including any portfolio or business
acquisition, excluding ordinary course transactions. For
additional information about the requirements under the 2020
Consent Orders, see Citi’s Current Report on Form 8-K filed
with the SEC on October 9, 2020.
Governance
Citi has built an organization and infrastructure to manage,
guide and support its transformation, which spans all
businesses and functions to ensure consistency. Additionally,
the Citigroup and Citibank Boards of Directors each formed a
Transformation Oversight Committee, an ad hoc committee of
each Board, to provide oversight of Citi’s efforts to improve
its risk and control environment and management’s
remediation efforts under the consent orders.
While every member of Citi’s executive management
team, or EMT, is involved in the transformation and plays a
key, direct role in its implementation, Citi’s CEO has taken a
leading role in managing the effort. As part of this effort,
Citi’s CEO has assembled a team consisting of long-tenured
employees and new hires from across various disciplines and
areas of expertise and experience, along with representatives
from each of Citi’s businesses and functions, to lead the
various transformation programs. Citi is focusing the
Company’s most senior talent on this effort and has a detailed,
integrated approach to execute on the transformation. Citi’s
Transformation Steering Committee, chaired by Citi’s CEO,
sets the overall direction for the transformation and
communicates progress to the Citigroup Board of Directors, as
well as seeks input and feedback from the Board.
In 2023, Citi appointed a Chief Operating Officer, who
reports to the CEO and is responsible for running Citi’s overall
transformation efforts, as well as leading Citi’s efforts to
improve operating efficiency and returns along with Citi’s
enterprise-wide effort to strengthen its risk and controls and
data quality, and modernize infrastructure, while simplifying
the Company. In 2024, Citi hired a new Head of Technology
and Business Enablement, who reports to the CEO and works
closely with Citi’s transformation team to drive improvements
to data quality and modernize infrastructure, while driving
simplification and automation across Citi.
12
Transformation Bonus Program
In 2021, the Compensation, Performance Management and
Culture Committee (the Compensation Committee) of
Citigroup’s Board of Directors approved a long-term
performance-based bonus program to incentivize effective
execution in connection with the transformation and
remediation of the consent orders and to drive change in Citi’s
risk and control environment and culture (the Transformation
Bonus Program, or the Program). There are approximately 200
senior employees who were deemed critical to the execution
of the transformation and are therefore eligible for the
Program.
Performance is measured, and the bonus, if any, payable
pursuant to the Transformation Bonus Program is paid in three
tranches, each representing a separate performance period.
Well-defined goals and related metrics are established for
each of the three tranches, which may reflect qualitative
considerations, including regulatory actions. At the end of
each year, the Compensation Committee determines the
appropriate level of payout given the accomplishments for the
performance period relative to the specific goals and related
metrics. The maximum portion of the bonus payable for each
tranche was 25% for the first tranche, 25% for the second
tranche and is 50% for the third tranche.
For additional information on the Transformation Bonus
Program, including the Compensation Committee’s
determination with respect to performance metrics, targets and
achievements for the first and second performance
measurement periods under the Program, see “Citi’s Multiyear
Transformation” in Citi’s Second Quarter of 2024 Form 10-Q
and Citi’s 2024 Proxy Statement for Citigroup’s Annual
Meeting of Stockholders. For additional information on the
Compensation Committee’s determination with respect to
performance metrics, targets and achievements for the third
performance measurement period under the Program covering
calendar year 2024, see Citi’s upcoming 2025 Annual Meeting
Proxy Statement to be filed with the SEC in March 2025.
13
RESULTS OF OPERATIONS
SUMMARY OF SELECTED FINANCIAL DATA
Citigroup Inc. and Consolidated Subsidiaries
In millions of dollars, except per share amounts
2024
2023
2022
2021
2020
Net interest income
$
54,095 $
54,900 $
48,668 $
42,494 $
44,751
Non-interest revenue
27,044
23,562
26,670
29,390
30,750
Revenues, net of interest expense
$
81,139 $
78,462 $
75,338 $
71,884 $
75,501
Operating expenses
53,984
56,366
51,292
48,193
44,374
Provisions for credit losses and for benefits and claims
10,109
9,186
5,239
(3,778)
17,495
Income from continuing operations before income taxes
$
17,046 $
12,910 $
18,807 $
27,469 $
13,632
Income taxes
4,211
3,528
3,642
5,451
2,525
Income from continuing operations
$
12,835 $
9,382 $
15,165 $
22,018 $
11,107
Income (loss) from discontinued operations, net of taxes
(2)
(1)
(231)
7
(20)
Net income before attribution of noncontrolling interests
$
12,833 $
9,381 $
14,934 $
22,025 $
11,087
Net income attributable to noncontrolling interests
151
153
89
73
40
Citigroup’s net income
$
12,682 $
9,228 $
14,845 $
21,952 $
11,047
Earnings per share
Basic
Income from continuing operations
$
6.03 $
4.07 $
7.16 $
10.21 $
4.75
Net income
6.03
4.07
7.04
10.21
4.74
Diluted
Income from continuing operations
$
5.95 $
4.04 $
7.11 $
10.14 $
4.73
Net income
5.94
4.04
7.00
10.14
4.72
Dividends declared per common share
2.18
2.08
2.04
2.04
2.04
Common dividends
$
4,218 $
4,076 $
4,028 $
4,196 $
4,299
Preferred dividends
1,054
1,198
1,032
1,040
1,095
Common share repurchases
2,500
2,000
3,250
7,600
2,925
Table continues on the next page, including footnotes.
14
SUMMARY OF SELECTED FINANCIAL DATA
(Continued)
Citigroup Inc. and Consolidated Subsidiaries
In millions of dollars, except per share amounts, ratios and direct staff
or as otherwise noted
2024
2023
2022
2021
2020
At December 31:
Total assets
$ 2,352,945
$ 2,411,834
$ 2,416,676
$ 2,291,413
$ 2,260,090
Total deposits
1,284,458
1,308,681
1,365,954
1,317,230
1,280,671
Long-term debt
287,300
286,619
271,606
254,374
271,686
Citigroup common stockholders’ equity
190,748
187,853
182,194
182,977
179,962
Total Citigroup stockholders’ equity
208,598
205,453
201,189
201,972
199,442
Average assets
2,468,431
2,442,233
2,396,023
2,347,709
2,226,454
Direct staff (in thousands)
229
239
240
223
210
Performance metrics
Return on average assets
0.51 %
0.38 %
0.62 %
0.94 %
0.50 %
Return on average common stockholders’ equity(1)
6.1
4.3
7.7
11.5
5.7
Return on average total stockholders’ equity(1)
6.1
4.5
7.5
10.9
5.7
Return on tangible common equity (RoTCE)(2)
7.0
4.9
8.9
13.4
6.6
Operating leverage(3)
764 bps
(575) bps
(163) bps
(1,340) bps
(314) bps
Efficiency ratio (total operating expenses/total revenues, net)
66.5
71.8
68.1
67.0
58.8
Basel III ratios
CET1 Capital(4)
13.63 %
13.37 %
13.03 %
12.25 %
11.51 %
Tier 1 Capital(4)
15.31
15.02
14.80
13.91
13.06
Total Capital(4)
15.42
15.13
15.46
16.04
15.33
Supplementary Leverage ratio
5.85
5.82
5.82
5.73
6.99
Citigroup common stockholders’ equity to assets
8.11 %
7.79 %
7.54 %
7.99 %
7.96 %
Total Citigroup stockholders’ equity to assets
8.87
8.52
8.33
8.81
8.82
Dividend payout ratio(5)
37
51
29
20
43
Total payout ratio(6)
58
76
53
56
73
Book value per common share
$
101.62
$
98.71
$
94.06
$
92.21
$
86.43
Tangible book value per share (TBVPS)(2)
89.34
86.19
81.65
79.16
73.67
(1)
The return on average common stockholders’ equity is calculated using net income less preferred stock dividends divided by average common stockholders’
equity. The return on average total Citigroup stockholders’ equity is calculated using net income divided by average Citigroup stockholders’ equity.
(2)
RoTCE and TBVPS are non-GAAP financial measures. For information on RoTCE and TBVPS, see “Capital Resources—Tangible Common Equity, Book Value
Per Share, Tangible Book Value Per Share and Return on Equity” below.
(3)
Represents the year-over-year growth rate in basis points (bps) of Total revenues, net of interest expense less the year-over-year growth rate of Total operating
expenses. Positive operating leverage indicates that the revenue growth rate was greater than the expense growth rate.
(4)
Citi’s binding CET1 Capital and Tier 1 Capital ratios were derived under the Basel III Standardized Approach as of December 31, 2024, 2023, 2022 and 2021, and
were derived under the Basel III Advanced Approaches framework as of December 31, 2020. Citi’s binding Total Capital ratio was derived under the Basel III
Advanced Approaches framework for all periods presented.
(5)
Dividends declared per common share as a percentage of net income per diluted share.
(6)
Total common dividends declared plus common share repurchases as a percentage of net income available to common shareholders (Net income less preferred
dividends). See “Consolidated Statement of Changes in Stockholders’ Equity,” Note 11 and “Equity Security Repurchases” below for the component details.
15
SEGMENT REVENUES AND INCOME (LOSS)
REVENUES
In millions of dollars
2024
2023
2022
% Change
2024 vs. 2023
% Change
2023 vs. 2022
Services
$
19,649 $
18,102 $
15,665
9 %
16 %
Markets
19,836
18,649
19,945
6
(6)
Banking
6,201
4,715
5,527
32
(15)
Wealth
7,512
7,021
7,355
7
(5)
USPB
20,374
19,187
16,872
6
14
All Other—managed basis(1)
7,541
9,442
9,120
(20)
4
All Other—divestiture-related impacts (Reconciling Items)(1)
26
1,346
854
(98)
58
Total Citigroup net revenues
$
81,139 $
78,462 $
75,338
3 %
4 %
INCOME
In millions of dollars
2024
2023
2022
% Change
2024 vs. 2023
% Change
2023 vs. 2022
Income (loss) from continuing operations
Services
$
6,584 $
4,701 $
4,948
40 %
(5) %
Markets
5,005
3,938
5,852
27
(33)
Banking
1,529
(31)
334
NM
NM
Wealth
1,002
419
995
139
(58)
USPB
1,382
1,820
2,770
(24)
(34)
All Other—managed basis(1)
(2,460)
(2,124)
450
(16)
NM
All Other—divestiture-related impacts (Reconciling Items)(1)
(207)
659
(184)
NM
NM
Income from continuing operations
$
12,835 $
9,382 $
15,165
37 %
(38) %
Discontinued operations
$
(2) $
(1) $
(231)
(100) %
100 %
Less: Net income attributable to noncontrolling interests
151
153
89
(1)
72
Citigroup’s net income
$
12,682 $
9,228 $
14,845
37 %
(38) %
(1)
All Other (managed basis) excludes divestiture-related impacts (Reconciling Items) related to (i) Citi’s divestitures of its Asia Consumer businesses and (ii) the
planned IPO of Mexico Consumer/SBMM within Legacy Franchises. The Reconciling Items are fully reflected in the various line items in Citi’s Consolidated
Statement of Income. See “All Other—Divestiture-Related Impacts (Reconciling Items)” below.
NM Not meaningful
16
SELECT BALANCE SHEET ITEMS BY SEGMENT(1)—DECEMBER 31, 2024
In millions of dollars
Services
Markets
Banking
Wealth
USPB
All Other
and
consolidating
eliminations(2)
Citigroup
parent company-
issued long-term
debt(3)
Total
Citigroup
consolidated
Cash and deposits with banks,
net of allowance
$
15,281 $ 80,175 $
1,350 $
1,858 $
2,975 $
174,893 $
— $
276,532
Securities borrowed and
purchased under agreements to
resell, net of allowance
8,886 262,130
—
360
—
2,686
—
274,062
Trading account assets
49 428,656
831
1,126
292
11,793
—
442,747
Investments, net of allowance
606 120,107
937
1
—
355,006
—
476,657
Loans, net of unearned income
and allowance for credit losses
on loans
87,596 124,253
80,915
146,988 207,571
28,591
—
675,914
Deposits
$ 807,002 $ 12,713 $
564 $ 312,795 $ 89,432 $
61,952 $
— $ 1,284,458
Securities loaned and sold
under agreements to
repurchase
552 251,852
—
48
—
2,303
—
254,755
Trading account liabilities
1,067 132,097
4
328
193
157
—
133,846
Short-term borrowings
117
43,439
2
2
—
4,945
—
48,505
Long-term debt(3)
—
93,138
—
392
—
29,746
164,024
287,300
(1)
The information presented in the table above reflects select GAAP balance sheet items by reportable segment and component. This table does not include
intersegment funding.
(2)
Consolidating eliminations for total Citigroup and Citigroup parent company items are recorded within All Other.
(3)
The majority of long-term debt of Citigroup is reflected on the Citigroup parent company balance sheet (see Notes 19 and 31). Citigroup allocates stockholders’
equity and long-term debt to its businesses.
17
SERVICES
Services includes Treasury and Trade Solutions (TTS) and Securities Services. TTS provides an integrated suite of tailored cash
management, payments and trade and working capital solutions to multinational corporations, financial institutions and public sector
organizations. Securities Services provides a comprehensive product offering, connecting clients to global markets across the entire
investment cycle, including on-the-ground local market expertise, post-trade technologies, customized data solutions and a wide range
of securities services solutions that can be tailored to meet clients’ needs.
Services revenue is generated primarily from spreads and fees associated with these activities. Services earns spread revenue
through generating deposits, as well as interest on loans. Revenue generated from these activities is primarily recorded in Net interest
income. Fee income is earned for assisting clients with transactional services and clearing. Revenue generated from these activities is
recorded in Commissions and fees. Revenue is also generated from assets under custody and administration and is recognized when
the associated service is provided by Citi. Revenue generated from these activities is primarily recorded in Administration and other
fiduciary fees. For additional information on these various types of revenues, see Note 5. Services revenues also include revenues
earned by Citi that are subject to a revenue sharing arrangement with Banking—Corporate Lending for Investment Banking, Markets
and Services products sold to Corporate Lending clients.
At December 31, 2024, Services had $584 billion in assets and $807 billion in deposits. Securities Services managed $25.4 trillion
in assets under custody and administration, of which Citi provided both custody and administrative services to certain clients related to
$1.9 trillion of such assets.
In millions of dollars, except as otherwise noted
2024
2023
2022
% Change
2024 vs. 2023
% Change
2023 vs. 2022
Net interest income (including dividends)
$
13,423
$
13,251
$
10,365
1 %
28 %
Fee revenue
Commissions and fees
3,327
3,125
2,887
6
8
Administration and other fiduciary fees, and other
2,716
2,501
2,483
9
1
Total fee revenue
$
6,043
$
5,626
$
5,370
7 %
5 %
Principal transactions
959
1,006
854
(5)
18
All other(1)
(776)
(1,781)
(924)
56
(93)
Total non-interest revenue
$
6,226
$
4,851
$
5,300
28 %
(8) %
Total revenues, net of interest expense
$
19,649
$
18,102
$
15,665
9 %
16 %
Total operating expenses
$
10,599
$
10,031
$
8,734
6 %
15 %
Net credit losses on loans
48
40
51
20
(22)
Credit reserve build (release) for loans
(130)
47
128
NM
(63)
Provision for credit losses on unfunded lending commitments
17
(18)
24
NM
NM
Provisions for credit losses on other assets and HTM debt
securities
341
881
4
(61)
NM
Provision (release) for credit losses
$
276
$
950
$
207
(71) %
NM
Income from continuing operations before taxes
$
8,774
$
7,121
$
6,724
23 %
6 %
Income taxes
2,190
2,420
1,776
(10)
36
Income from continuing operations
$
6,584
$
4,701
$
4,948
40 %
(5) %
Noncontrolling interests
101
66
36
53
83
Net income
$
6,483
$
4,635
$
4,912
40 %
(6) %
Balance Sheet data (in billions of dollars)
EOP assets
$
584
$
586
$
600
— %
(2) %
Average assets
586
583
546
1
7
Efficiency ratio
54 %
55 %
56 %
Revenue by component
Net interest income
$
10,923
$
11,085
$
8,884
(1) %
25 %
Non-interest revenue
3,609
2,631
2,954
37
(11)
Treasury and Trade Solutions (TTS)
$
14,532
$
13,716
$
11,838
6 %
16 %
Net interest income
$
2,500
$
2,166
$
1,481
15 %
46 %
Non-interest revenue
2,617
2,220
2,346
18
(5)
Securities Services
$
5,117
$
4,386
$
3,827
17 %
15 %
Total Services
$
19,649
$
18,102
$
15,665
9 %
16 %
18
Revenue by geography
North America
$
5,415
$
5,131
$
4,782
6 %
7 %
International
14,234
12,971
10,883
10
19
Total
$
19,649
$
18,102
$
15,665
9 %
16 %
International revenue by cluster
United Kingdom
$
1,972
$
1,811
$
1,426
9 %
27 %
Japan, Asia North and Australia (JANA)
2,678
2,469
2,097
8
18
LATAM
2,734
2,512
2,193
9
15
Asia South
2,428
2,161
1,779
12
21
Europe
2,283
2,231
1,763
2
27
Middle East and Africa (MEA)
2,139
1,787
1,625
20
10
Total
$
14,234
$
12,971
$
10,883
10 %
19 %
Key drivers(2)
Average loans by component (in billions of dollars)
TTS
$
84
$
80
$
80
5 %
— %
Securities Services
1
1
2
—
(50)
Total
$
85
$
81
$
82
5 %
(1) %
ACLL as a percentage of EOP loans(3)
0.30 %
0.47 %
0.46 %
Average deposits by component (in billions of dollars)
TTS
$
689
$
688
$
676
— %
2 %
Securities Services
130
123
133
6
(8)
Total
$
819
$
811
$
809
1 %
— %
Cross-border transaction value (in billions of dollars)
$
379.7
$
358.0
$
311.6
6 %
15 %
U.S. dollar clearing volume (in millions)(4)
168.0
157.3
148.6
7
6
Commercial card spend volume (in billions of dollars)
$
70.4
$
66.8
$
57.4
5
16
(1)
Includes revenues earned by Citi that are subject to a revenue sharing arrangement with Banking—Corporate Lending for Investment Banking, Markets and
Services products sold to Corporate Lending clients.
(2)
Management uses this information in reviewing the segment’s results and believes it is useful to investors concerning underlying segment performance and trends.
(3)
Excludes loans that are carried at fair value for all periods.
(4)
Represents the number of U.S. dollar clearing payment instructions processed on behalf of U.S. and foreign-domiciled entities (primarily financial institutions).
NM Not meaningful
2024 vs. 2023
Net income of $6.5 billion increased 40%, driven by higher
revenues and lower cost of credit, partially offset by higher
expenses.
Revenues increased 9%, driven by higher non-interest
revenue in TTS and Securities Services, as well as higher net
interest income. Excluding the impact of the Argentina
currency devaluation (approximately $(178) million,
compared to approximately $(1.2) billion in the prior year),
revenues increased 3%.
Non-interest revenue increased 28%, largely due to the
smaller impact from the Argentina currency devaluation.
Excluding the impact of the Argentina currency devaluation,
non-interest revenue increased 5%, driven by continued
strength across underlying fee drivers in TTS and Securities
Services. Net interest income increased 1%, as the benefit of
higher deposit and loan volumes was largely offset by a
decline in interest rates in Argentina. Average deposits
increased 1%, primarily driven by growth in Securities
Services. Citi continued to increase operating deposits in both
TTS and Securities Services.
TTS revenues increased 6%, primarily driven by a 37%
increase in non-interest revenue, partially offset by a 1%
decrease in net interest income. The increase in non-interest
revenue was largely driven by the smaller impact from the
Argentina currency devaluation (approximately $(164)
million, compared to approximately $(1.0) billion in the prior
year). Excluding the Argentina currency devaluation, non-
interest revenue grew 3%, reflecting growth in underlying fee
drivers, including cross-border transaction value (up 6%), U.S.
dollar clearing volume (up 7%) and commercial card spend
volume (up 5%). The decrease in net interest income was
primarily driven by the decline in interest rates in Argentina.
Average deposits were largely unchanged, as growth in
International was offset by a decrease in North America. For
additional information about Citi’s exposure in Argentina, see
“Managing Global Risk—Other Risk—Country Risk—
Argentina” below.
Securities Services revenues increased 17%, driven by a
15% increase in net interest income, primarily due to higher
spreads and volumes, and an 18% increase in non-interest
revenue. The increase in spreads was driven by higher interest
rates and deposit mix across currencies. Average deposits
increased 6%, driven by growth in both North America and
International. The growth in non-interest revenue was
primarily driven by increased fees from higher AUC/AUA
19
balances and continued elevated levels of corporate activity in
Issuer Services, as well as the smaller impact from the
Argentina currency devaluation. AUC/AUA balances
increased 8%, benefiting from higher market valuations, new
client onboarding and deepening share of existing client
wallet.
Expenses increased 6%, primarily driven by continued
investments in technology and platform modernization, other
risk and controls and product innovation, as well as an
Argentina-related transaction tax expense and higher legal
expenses, partially offset by the impact of productivity
savings.
Provisions were $276 million, compared to $950 million
in the prior year, primarily driven by a lower ACL build on
other assets.
The net ACL build was $228 million, compared to $910
million in the prior year. The lower net ACL build was
primarily due to a smaller build for transfer risk associated
with exposures outside the U.S., driven by safety and
soundness considerations under U.S. banking law.
For additional information on Citi’s ACL, see
“Significant Accounting Policies and Significant Estimates”
below.
For additional information on Services’ corporate credit
portfolio, see “Managing Global Risk—Credit Risk—
Corporate Credit” below.
For additional information on trends in Services’ deposits
and loans, see “Managing Global Risk—Credit Risk—Loans”
and “Managing Global Risk—Liquidity Risk—Deposits”
below.
For additional information about trends, uncertainties and
risks related to Services’ future results, see “Executive
Summary” above and “Managing Global Risk—Other Risks
—Country Risk—Argentina” and “—Russia” below.
20
MARKETS
Markets provides corporate, institutional and public sector clients around the world with a full range of sales and trading services
across equities, foreign exchange, rates, spread products and commodities. The range of services includes market-making across asset
classes, risk management solutions, financing and prime brokerage.
As a market maker, Markets facilitates transactions, including holding product inventory to meet client demand, and earns the
differential between the price at which it buys and sells the products. These price differentials and the unrealized gains and losses on
the inventory are recorded in Principal transactions. Fee revenue is earned through providing clients with a range of services
including but not limited to trading, financing, brokerage, securitization and underwriting. Other primarily includes realized gains and
losses on available-for-sale (AFS) debt securities, gains and losses on equity securities not held in trading accounts and other non-
recurring gains and losses. Interest income earned on assets held, less interest paid on long- and short-term debt, secured funding
transactions and customer deposits, is recorded as Net interest income.
The amount and types of Markets revenues are impacted by a variety of interrelated factors, including market liquidity; changes in
market variables such as interest rates, foreign exchange rates, equity prices, commodity prices and credit spreads, as well as their
implied volatilities; investor confidence; and other macroeconomic conditions. Markets revenues include revenues earned by Citi that
are subject to a revenue sharing arrangement with Banking—Corporate Lending for Investment Banking, Markets and Services
products sold to Corporate Lending clients.
Assuming all other market conditions do not change, increases in client activity levels or bid/offer spreads generally result in
increases in revenues. However, changes in market conditions can significantly impact client activity levels, bid/offer spreads and the
fair value of product inventory. Management of the Markets businesses involves daily monitoring and evaluation of the above factors.
Markets’ international presence is supported by trading floors in approximately 80 countries and a proprietary network in 95
countries and jurisdictions.
In millions of dollars, except as otherwise noted
2024
2023
2022
% Change
2024 vs. 2023
% Change
2023 vs. 2022
Net interest income (including dividends)
$
7,005
$
7,233
$
5,768
(3) %
25 %
Fee revenue
Brokerage and fees
1,402
1,381
1,452
2
(5)
Investment banking fees(1)
426
392
482
9
(19)
Other(2)
238
147
138
62
7
Total fee revenue
$
2,066
$
1,920
$
2,072
8 %
(7) %
Principal transactions
11,201
10,472
12,994
7
(19)
All other(2)
(436)
(976)
(889)
55
(10)
Total non-interest revenue
$
12,831
$
11,416
$
14,177
12 %
(19) %
Total revenues, net of interest expense(3)
$
19,836
$
18,649
$
19,945
6 %
(6) %
Total operating expenses
$
13,202
$
13,258
$
12,453
— %
6 %
Net credit losses (recoveries) on loans
168
32
(4)
425
NM
Credit reserve build (release) for loans
213
202
50
5
NM
Provision (release) for credit losses on unfunded lending
commitments
17
5
3
240
67
Provisions for credit losses on other assets and HTM debt
securities
65
199
68
(67)
NM
Provision (release) for credit losses
$
463
$
438
$
117
6 %
NM
Income (loss) from continuing operations before taxes
$
6,171
$
4,953
$
7,375
25 %
(33) %
Income taxes (benefits)
1,166
1,015
1,523
15
(33)
Income (loss) from continuing operations
$
5,005
$
3,938
$
5,852
27 %
(33) %
Noncontrolling interests
75
67
52
12
29
Net income (loss)
$
4,930
$
3,871
$
5,800
27 %
(33) %
Balance Sheet data (in billions of dollars)
EOP assets
$
949
$
1,008
$
963
(6) %
5 %
Average assets
1,063
1,026
999
4
3
Efficiency ratio
67 %
71 %
62 %
Revenue by component
Fixed Income Markets
$
14,750
$
14,612
$
15,494
1 %
(6) %
Equity Markets
5,086
4,037
4,451
26
(9)
Total
$
19,836
$
18,649
$
19,945
6 %
(6) %
21
Rates and currencies
$
10,152
$
10,794
$
11,462
(6) %
(6) %
Spread products/other fixed income
4,598
3,818
4,032
20
(5)
Total Fixed Income Markets revenues
$
14,750
$
14,612
$
15,494
1 %
(6) %
Revenue by geography
North America
$
7,562
$
6,839
$
6,726
11 %
2 %
International
12,274
11,810
13,219
4
(11)
Total
$
19,836
$
18,649
$
19,945
6 %
(6) %
International revenue by cluster
United Kingdom
$
4,099
$
4,383
$
5,650
(6) %
(22) %
Japan, Asia North and Australia (JANA)
2,546
2,370
2,401
7
(1)
LATAM
1,962
1,444
1,584
36
(9)
Asia South
1,618
1,404
1,388
15
1
Europe
935
1,086
913
(14)
19
Middle East and Africa (MEA)
1,114
1,123
1,283
(1)
(12)
Total
$
12,274
$
11,810
$
13,219
4 %
(11) %
Key drivers(4) (in billions of dollars)
Average loans
$
120
$
110
$
111
9 %
(1) %
NCLs as a percentage of average loans
0.14 %
0.03 %
— %
ACLL as a percentage of EOP loans(5)
0.88 %
0.71 %
0.58 %
Average trading account assets
436
379
334
15
13
Average deposits
21
23
21
(9)
10
(1)
Investment banking fees are primarily composed of underwriting, advisory, loan syndication structuring and other related financing activity.
(2)
Includes revenues earned by Citi that are subject to a revenue sharing arrangement with Banking—Corporate Lending for Investment Banking, Markets and
Services products sold to Corporate Lending clients.
(3)
Citi assesses its Markets business performance on a total revenue basis, as offsets may occur across revenue line items. For example, securities that generate Net
interest income may be risk managed by derivatives that are recorded in Principal transactions revenue within Non-interest revenue. For a description of the
composition of these revenue line items, see Notes 4, 5 and 6.
(4)
Management uses this information in reviewing the segment’s results and believes it is useful to investors concerning underlying segment performance and trends.
(5)
Excludes loans that are carried at fair value for all periods.
NM Not meaningful
2024 vs. 2023
Net income of $4.9 billion increased 27%, driven by higher
revenues, partially offset by higher cost of credit.
Revenues increased 6%, driven by higher Equity Markets
and Fixed Income Markets revenues. Citi expects that
revenues in its Markets businesses will reflect the overall
market environment during 2025.
Fixed Income Markets revenues increased 1%, driven by
spread products and other fixed income, partially offset by
lower revenues in rates and currencies. Rates and currencies
revenues decreased 6%, largely reflecting lower volatility and
a strong prior-year performance, partially offset by the smaller
impact of the Argentina currency devaluation. Spread products
and other fixed income revenues increased 20%, largely
driven by increased client activity due to growth in asset-
backed financing, securitization activity and underwriting fees.
These increases were partially offset by a decline in
commodities revenues on lower overall volatility.
Equity Markets revenues increased 26%, driven by
growth in cash equities due to higher client activity and
volumes. The increase in revenues was also due to growth in
equity derivative revenues on higher volatility, which also
included the impact from an episodic gain related to the Visa
B exchange. The increase in revenues was also driven by
growth in prime services, as Equity Markets continued to
experience an increase in prime balances.
Expenses were largely unchanged, as higher legal
expenses and higher volume-related expenses were offset by
productivity savings.
Provisions were $463 million, compared to $438 million
in the prior year, primarily driven by higher net credit losses,
partially offset by a lower ACL build on other assets.
Net credit losses were $168 million, compared to $32
million in the prior year, largely driven by higher losses on
loans in spread products.
The net ACL build was $295 million, compared to a net
build of $406 million in the prior year. The lower net ACL
build was primarily due to a smaller build for transfer risk
associated with exposures outside the U.S., driven by safety
and soundness considerations under U.S. banking law.
For additional information on Citi’s ACL, see
“Significant Accounting Policies and Significant Estimates”
below.
For additional information on Markets’ corporate credit
portfolio, see “Managing Global Risk—Credit Risk—
Corporate Credit” below.
For additional information on trends in Markets’ deposits
and loans, see “Managing Global Risk—Credit Risk—Loans”
and “Managing Global Risk—Liquidity Risk—Deposits”
below.
For additional information about trends, uncertainties and
risks related to Markets’ future results, see “Executive
Summary” above and “Managing Global Risk—Other Risks
—Country Risk—Argentina” and “—Russia” below.
22
BANKING
Banking includes Investment Banking, which supports clients’ capital-raising needs to help strengthen and grow their businesses,
including equity and debt capital markets-related strategic financing solutions and loan syndication structuring, as well as advisory
services related to mergers and acquisitions, divestitures, restructurings and corporate defense activities; and Corporate Lending,
which includes corporate and commercial banking, serving as the conduit for Citi’s full product suite to clients.
Banking revenues include revenues earned by Citi that are subject to a revenue sharing arrangement for Investment Banking,
Markets and Services products sold to Corporate Lending clients.
At December 31, 2024, Banking had $143 billion in assets including $82 billion in loans and $0.6 billion in deposits.
In millions of dollars, except as otherwise noted
2024
2023
2022
% Change
2024 vs. 2023
% Change
2023 vs. 2022
Net interest income (including dividends)
$
2,157
$
2,161
$
2,130
— %
1 %
Fee revenue
Investment banking fees(1)
3,857
2,713
3,052
42
(11)
Other
174
160
175
9
(9)
Total fee revenue
$
4,031
$
2,873
$
3,227
40 %
(11) %
Principal transactions
(759)
(938)
(133)
19
NM
All other(2)
772
619
303
25
NM
Total non-interest revenue
$
4,044
$
2,554
$
3,397
58 %
(25) %
Total revenues, net of interest expense
6,201
4,715
5,527
32
(15)
Total operating expenses
$
4,477
$
4,877
$
4,460
(8) %
9 %
Net credit losses on loans
149
169
107
(12)
58
Credit reserve build (release) for loans
(200)
(345)
321
42
NM
Provision (release) for credit losses on unfunded lending
commitments
(128)
(354)
158
64
NM
Provisions (releases) for credit losses on other assets and
HTM debt securities
(45)
387
18
NM
NM
Provisions (releases) for credit losses
$
(224)
$
(143)
$
604
(57) %
NM
Income (loss) from continuing operations before taxes
$
1,948
$
(19)
$
463
NM
NM
Income taxes (benefits)
419
12
129
NM
(91) %
Income (loss) from continuing operations
$
1,529
$
(31)
$
334
NM
NM
Noncontrolling interests
5
4
(3)
25 %
NM
Net income (loss)
$
1,524
$
(35)
$
337
NM
NM
Balance Sheet data (in billions of dollars)
EOP assets
$
143
$
148
$
152
(3) %
(3) %
Average assets
152
153
159
(1)
(4)
Efficiency ratio
72 %
103 %
81 %
Revenue by component
Total Investment Banking
$
3,637
$
2,632
$
2,608
38 %
1 %
Corporate Lending (excluding gain (loss) on loan hedges)(2)(3)
2,744
2,526
2,612
9
(3)
Total Banking revenues (excluding gain (loss) on loan
hedges)(2)(3)
$
6,381
$
5,158
$
5,220
24 %
(1) %
Gain (loss) on loan hedges(2)(3)
(180)
(443)
307
59
NM
Total Banking revenues (including gain (loss) on loan
hedges)(2)(3)
$
6,201
$
4,715
$
5,527
32 %
(15) %
Business metrics—investment banking fees
Advisory
$
1,245
$
1,017
$
1,332
22 %
(24) %
Equity underwriting (Equity Capital Markets (ECM))
688
500
621
38
(19)
Debt underwriting (Debt Capital Markets (DCM))
1,924
1,196
1,099
61
9
Total
$
3,857
$
2,713
$
3,052
42 %
(11) %
Revenue by geography
North America
$
3,097
$
1,898
$
2,563
63 %
(26) %
23
International
3,104
2,817
2,964
10
(5)
Total
$
6,201
$
4,715
$
5,527
32 %
(15) %
International revenue by cluster
United Kingdom
$
686
$
637
$
635
8 %
— %
Japan, Asia North and Australia (JANA)
524
591
662
(11)
(11)
LATAM
662
522
502
27
4
Asia South
411
381
423
8
(10)
Europe
588
498
468
18
6
Middle East and Africa (MEA)
233
188
274
24
(31)
Total
$
3,104
$
2,817
$
2,964
10 %
(5) %
Key drivers(4) (in billions of dollars)
Average loans
$
88
$
92
$
100
(4) %
(8) %
NCLs as a percentage of average loans
0.17 %
0.18 %
0.11 %
ACLL as a percentage of EOP loans(5)
1.42 %
1.59 %
1.88 %
Average deposits
1
1
1
—
—
(1)
Investment banking fees are primarily composed of underwriting, advisory, loan syndication structuring and other related financing activity.
(2)
Includes revenues earned by Citi that are subject to a revenue sharing arrangement with Banking—Corporate Lending for Investment Banking, Markets and
Services products sold to Corporate Lending clients.
(3)
Credit derivatives are used to economically hedge a portion of the corporate loan portfolio that includes both accrual loans and loans at fair value. Gain (loss) on
loan hedges includes the mark-to-market on the credit derivatives, partially offset by the mark-to-market on the loans in the portfolio that are at fair value. Hedges
on accrual loans reflect the mark-to-market on credit derivatives used to economically hedge the corporate loan accrual portfolio. The fixed premium costs of
these hedges are netted against the corporate lending revenues to reflect the cost of credit protection. Citigroup’s results of operations excluding the impact of gain
(loss) on loan hedges are non-GAAP financial measures.
(4)
Management uses this information in reviewing the segment’s results and believes it is useful to investors concerning underlying segment performance and trends.
(5)
Excludes loans that are carried at fair value for all periods.
NM Not meaningful
The discussion of the results of operations for Banking below excludes (where noted) the impact of any gain (loss) on hedges of
accrual loans, which are non-GAAP financial measures. For a reconciliation of these metrics to the reported results, see the table
above.
2024 vs. 2023
Net income was $1.5 billion, compared to a net loss of $35
million in the prior year, driven by higher revenues, lower
expenses and a higher benefit from cost of credit.
Revenues increased 32% (including losses on loan
hedges), reflecting higher Investment Banking and Corporate
Lending revenues, along with a lower loss on loan hedges
($180 million versus $443 million in the prior year).
Excluding the impact of losses on loan hedges, Banking
revenues increased 24%.
Investment Banking revenues increased 38%, reflecting a
42% increase in investment banking fees, due to a rebound in
overall wallet activity and wallet share gains across all
products. DCM underwriting fees increased 61%, benefiting
from near record debt issuance, particularly in investment
grade and higher leveraged finance activity. Advisory fees
increased 22%, due to strong announced deal volume from
earlier in the year coming to fruition as those transactions
closed. Equity underwriting fees increased 38%, due to
stronger follow-on and convertibles activity.
Corporate Lending revenues increased 23%, including the
impact of gain (loss) on loan hedges. Excluding the impact of
losses on loan hedges, Corporate Lending revenues increased
9%, primarily driven by a smaller impact from the currency
devaluation in Argentina.
Expenses decreased 8%, primarily driven by benefits of
prior repositioning actions and other actions to lower the
expense base, partially offset by higher volume-related
expenses.
Provisions reflected a benefit of $224 million, compared
to a benefit of $143 million in the prior year, primarily driven
by an ACL release on other assets.
The net ACL release was $373 million, compared to a net
release of $312 million in the prior year, primarily due to
lower transfer risk associated with exposures outside the U.S.,
driven by safety and soundness considerations under U.S.
banking law. The net ACL releases on loans and unfunded
lending commitments in 2024 were primarily driven by
improved macroeconomic conditions.
For additional information on Citi’s ACL, see
“Significant Accounting Policies and Significant Estimates”
below.
For additional information on Banking’s corporate credit
portfolio, see “Managing Global Risk—Credit Risk—
Corporate Credit” below.
For additional information on trends in Banking’s deposits
and loans, see “Managing Global Risk—Credit Risk—Loans”
and “Managing Global Risk—Liquidity Risk—Deposits”
below.
For additional information about trends, uncertainties and
risks related to Banking’s future results, see “Executive
Summary” above and “Managing Global Risk—Other Risks
—Country Risk—Argentina” and “—Russia” below.
24
WEALTH
Wealth includes the Private Bank, Wealth at Work and Citigold businesses and provides financial services to a range of client
segments including affluent, high net worth and ultra-high net worth clients through banking, lending, mortgages, investment, custody
and trust product offerings in 20 countries, including the U.S., Mexico and four wealth management centers: Singapore, Hong Kong,
the UAE and London. Private Bank provides financial services to ultra-high net worth clients through customized product offerings.
Wealth at Work provides financial services to professional industries (including law firms, consulting groups, accounting and asset
management) through tailored solutions. Citigold and Citigold Private Client provide financial services to affluent and high net worth
clients through elevated product offerings and financial relationships.
At December 31, 2024, Wealth had $313 billion in deposits, $587 billion in client investment assets and $148 billion in loans,
including $89 billion in mortgage loans, $29 billion in margin loans, $24 billion in personal, small business and other loans and $5
billion in outstanding credit card balances. In addition, Wealth had net new investment asset flows of $42 billion during 2024. For
additional information on Wealth’s end-of-period consumer loan portfolios and metrics, see “Managing Global Risk—Credit Risk—
Consumer Credit” below.
In millions of dollars, except as otherwise noted
2024
2023
2022
% Change
2024 vs. 2023
% Change
2023 vs. 2022
Net interest income
$
4,508
$
4,413
$
4,681
2 %
(6) %
Fee revenue
Commissions and fees
1,409
1,204
1,206
17
—
Other(1)
949
802
858
18
(7)
Total fee revenue
$
2,358
$
2,006
$
2,064
18 %
(3) %
All other(2)
646
602
610
7
(1)
Total non-interest revenue
$
3,004
$
2,608
$
2,674
15 %
(2) %
Total revenues, net of interest expense
7,512
7,021
7,355
7
(5)
Total operating expenses
$
6,355
$
6,485
$
5,912
(2) %
10 %
Net credit losses on loans
121
98
103
23
(5)
Credit reserve build (release) for loans
(236)
(85)
190
(178)
NM
Provision (release) for credit losses on unfunded lending
commitments
(9)
(12)
12
25
NM
Provisions for benefits and claims (PBC), and other assets
(2)
(4)
2
50
NM
Provisions (releases) for credit losses and PBC
$
(126)
$
(3)
$
307
NM
NM
Income from continuing operations before taxes
$
1,283
$
539
$
1,136
138 %
(53) %
Income taxes
281
120
141
134
(15)
Income from continuing operations
$
1,002
$
419
$
995
139 %
(58) %
Noncontrolling interests
—
—
—
—
—
Net income
$
1,002
$
419
$
995
139 %
(58) %
Balance Sheet data (in billions of dollars)
EOP assets
$
224
$
229
$
256
(2) %
(11) %
Average assets
231
244
256
(5)
(5)
Efficiency ratio
85 %
92 %
80 %
Revenue by component
Private Bank
$
2,386
$
2,332
$
2,811
2 %
(17) %
Wealth at Work
876
862
730
2
18
Citigold
4,250
3,827
3,814
11
—
Total
$
7,512
$
7,021
$
7,355
7 %
(5) %
Revenue by geography
North America
$
3,628
$
3,615
$
3,927
— %
(8) %
International
3,884
3,406
3,428
14
(1)
Total
$
7,512
$
7,021
$
7,355
7 %
(5) %
25
International revenue by cluster
United Kingdom
$
336
$
288
$
356
17 %
(19) %
Japan, Asia North and Australia (JANA)
1,365
1,152
1,159
18
(1)
LATAM
129
118
203
9
(42)
Asia South
1,369
1,199
1,093
14
10
Europe
301
301
310
—
(3)
Middle East and Africa (MEA)
384
348
307
10
13
Total
$
3,884
$
3,406
$
3,428
14 %
(1) %
Key drivers(3) (in billions of dollars)
EOP client balances
Client investment assets(4)
$
587
$
496
$
441
18 %
12 %
Deposits
313
319
318
(2)
—
Loans
148
151
149
(3)
1
Total
$
1,048
$
966
$
908
8 %
6 %
Average loans
$
149
$
150
$
150
(1) %
— %
ACLL as a percentage of EOP loans
0.36 %
0.51 %
0.59 %
(1)
Primarily related to fiduciary and administrative fees.
(2)
Primarily related to principal transactions revenue including FX translation.
(3)
Management uses this information in reviewing the segment’s results and believes it is useful to investors concerning underlying segment performance and trends.
(4)
Includes assets under management, and trust and custody assets.
NM Not meaningful
2024 vs. 2023
Net income was $1.0 billion, compared to $419 million in the
prior year, reflecting higher revenues, lower expenses and a
higher benefit from cost of credit.
Revenues increased 7%, largely driven by an increase in
non-interest revenue (up 15%), reflecting higher investment
fee revenues on growth in client investment assets, as well as
an increase in net interest income (up 2%). The increase in net
interest income was mainly due to higher average deposit
spreads and volumes, partially offset by higher mortgage
funding costs.
Client balances increased 8%, primarily driven by higher
client investment assets (up 18%), reflecting strong net new
investment assets generation and higher market valuations.
Average deposits increased 2%, reflecting the transfers of
relationships and the associated deposits from USPB ($17
billion at the time of transfer over the last 12 months), partially
offset by a shift in deposits to higher-yielding investments on
Citi’s platform. Average loans decreased 1%, as Wealth
continued to optimize capital usage.
Private Bank and Wealth at Work revenues both increased
2%, driven by the improved deposit spreads and the higher
investment fee revenues, partially offset by the higher
mortgage funding costs.
Citigold revenues increased 11%, driven by the higher
investment fee revenues, as well as higher deposit spreads and
volumes, reflecting the transfer of relationships and the
associated deposits from USPB.
Expenses decreased 2%, mainly driven by benefits from
prior repositioning and restructuring actions, partially offset by
higher volume-related expenses and technology investments
focused on risk and controls and platform enhancements.
Provisions were a benefit of $126 million, compared to a
benefit of $3 million in the prior year, largely driven by a
higher net ACL release. The higher net ACL release was
primarily due to a change in the ACL associated with the
margin lending portfolio.
For additional information on Citi’s ACL, see
“Significant Accounting Policies and Significant Estimates”
below.
For additional information on Wealth’s loan portfolios,
see “Managing Global Risk—Credit Risk—Consumer Credit”
below.
For additional information about trends, uncertainties and
risks related to Wealth’s future results, see “Executive
Summary” above and “Risk Factors” below.
26
U.S. PERSONAL BANKING
U.S. Personal Banking (USPB) includes Branded Cards and Retail Services, with proprietary credit card portfolios (Value, Rewards
and Cash) and co-branded card portfolios (including Costco and American Airlines) within Branded Cards, and co-brand and private
label relationships within Retail Services (including, among others, The Home Depot, Best Buy, Macy’s and Sears). USPB also
includes Retail Banking, which provides traditional banking services to retail and small business customers.
In December 2024, Citi announced a 10-year extension and expansion of its co-branded credit card partnership with American
Airlines. In addition, Citi reached an agreement to acquire the Barclays American Airlines co-branded card portfolio and will begin
transitioning cardmembers to the Citi portfolio in 2026. With the acquisition of the Barclays portfolio, Citi will become American
Airlines’ exclusive credit card issuing partner in 2026.
At December 31, 2024, USPB had 642 retail bank branches concentrated in the six key metropolitan areas of New York, Chicago,
Los Angeles, San Francisco, Washington, D.C. and Miami. USPB had $171 billion in outstanding credit card balances, $89 billion in
deposits, $46 billion in mortgages and $5 billion in personal and small business loans. For additional information on USPB’s end-of-
period consumer loan portfolios and metrics, see “Managing Global Risk—Credit Risk—Consumer Credit” below.
In millions of dollars, except as otherwise noted
2024
2023
2022
% Change
2024 vs. 2023
% Change
2023 vs. 2022
Net interest income
$
21,103
$
20,150
$
18,062
5 %
12 %
Fee revenue
Interchange fees
9,910
9,674
9,190
2
5
Card rewards and partner payments
(11,226)
(11,083)
(10,862)
(1)
(2)
Other(1)
468
349
462
34
(24)
Total fee revenue
$
(848)
$
(1,060)
$
(1,210)
20 %
12 %
All other(2)
119
97
20
23
NM
Total non-interest revenue
$
(729)
$
(963)
$
(1,190)
24 %
19 %
Total revenues, net of interest expense
20,374
19,187
16,872
6
14
Total operating expenses
$
9,965
$
10,102
$
9,782
(1) %
3 %
Net credit losses on loans
7,579
5,234
2,918
45
79
Credit reserve build (release) for loans
1,006
1,464
517
(31)
NM
Provision for credit losses on unfunded lending commitments
—
1
(1)
(100)
NM
Provisions for benefits and claims (PBC), and other assets
13
8
14
63
(43)
Provisions for credit losses and PBC
$
8,598
$
6,707
$
3,448
28 %
95 %
Income from continuing operations before taxes
$
1,811
$
2,378
$
3,642
(24) %
(35) %
Income taxes
429
558
872
(23)
(36)
Income from continuing operations
$
1,382
$
1,820
$
2,770
(24) %
(34) %
Noncontrolling interests
—
—
—
—
—
Net income
$
1,382
$
1,820
$
2,770
(24) %
(34) %
Balance Sheet data (in billions of dollars)
EOP assets
$
252
$
242
$
231
4 %
5 %
Average assets
241
231
213
4
8
Efficiency ratio
49 %
53 %
58 %
Revenue by component
Branded Cards
$
10,702
$
9,988
$
8,962
7 %
11 %
Retail Services
7,114
6,617
5,469
8
21
Retail Banking
2,558
2,582
2,441
(1)
6
Total
$
20,374
$
19,187
$
16,872
6 %
14 %
Key Drivers(3)
Average loans and deposits (in billions of dollars)
Average loans
$
209
$
193
$
171
8 %
13 %
ACLL as a percentage of EOP loans(4)
6.38 %
6.28 %
6.31 %
Average deposits
91
110
115
(17)
(4)
27
Credit card spend volume (in billions of dollars)
Branded Cards
$
516.1
$
497.4
$
474.6
4 %
5 %
Retail Services
90.6
94.9
99.1
(5)
(4)
New account acquisitions(5) (in thousands of accounts)
Branded Cards
4,667
4,546
4,173
3 %
9 %
Retail Services
7,882
9,138
9,957
(14)
(8)
(1)
Primarily related to retail banking and credit card-related fees.
(2)
Primarily related to revenue incentives from card networks and partners.
(3)
Management uses this information in reviewing the segment’s results and believes it is useful to investors concerning underlying segment performance and trends.
(4)
Excludes loans that are carried at fair value for all periods.
(5)
Represents the number of new credit card accounts opened.
NM Not meaningful
2024 vs. 2023
Net income was $1.4 billion, compared to $1.8 billion in the
prior year, reflecting higher cost of credit, partially offset by
higher revenues and lower expenses.
Revenues increased 6%, due to higher net interest income
(up 5%), driven by strong loan growth, primarily in cards, as
well as higher non-interest revenue (up 24%). The increase in
non-interest revenue was largely driven by lower partner
payments in Retail Services, due to higher net credit losses,
and an increase in interchange fees (see Note 5), driven by
higher card spend volume in Branded Cards. The increase in
non-interest revenue was partially offset by an increase in
rewards costs in Branded Cards, driven by the higher card
spend volume.
Cards revenues increased 7%. Branded Cards revenues
increased 7%, primarily driven by interest-earning balance
growth (up 9%), as payment rates continued to moderate, and
card spend volume growth. Branded Cards average loans
increased 9%, also reflecting the lower card payment rates and
higher card spend volume. Branded Cards spend volume
increased 4%, driven by higher FICO band customers.
Retail Services revenues increased 8%, primarily driven
by higher non-interest revenue due to the lower partner
payments, driven by the higher net credit losses (see
“Provisions” below and Note 5), as well as higher net interest
income on growth in interest-earning balances. Retail Services
average loans increased 3%, largely reflecting lower card
payment rates, partially offset by lower card spend volume.
Retail Services card spend volume decreased 5%, primarily
due to lower in-store foot traffic.
Retail Banking revenues decreased 1%, driven by the
impact of the transfers of certain relationships and the
associated deposit balances to Wealth, partially offset by
higher deposit spreads, as well as mortgage and installment
loan growth. Average mortgage loans increased 15%,
primarily driven by lower refinancings due to higher interest
rates and higher mortgage originations. Average deposits
decreased 17%, largely reflecting the transfer of certain
relationships and the associated deposit balances to Wealth
($17 billion at the time of transfer over the last 12 months).
Expenses decreased 1%, driven by continued productivity
savings and lower technology costs, partially offset by higher
volume-related expenses.
Provisions were $8.6 billion, compared to $6.7 billion in
the prior year, largely driven by higher net credit losses,
partially offset by a lower ACL build for loans.
Net credit losses of $7.6 billion increased 45%, primarily
reflecting the continued maturation of multiple cards loan
vintages originated in recent years. The maturation was
delayed by unprecedented levels of government stimulus
during the pandemic. In addition, the increase was driven by
macroeconomic pressures related to the elevated inflationary
and interest rate environment impacting both cards portfolios,
with lower FICO band customers primarily driving the
increase. Branded Cards net credit losses of $4.0 billion and
Retail Services net credit losses of $3.2 billion increased 51%
and 39%, respectively.
The net ACL build was $1.0 billion, compared to $1.5
billion in the prior year. The net ACL build on loans was
primarily driven by the impact of macroeconomic pressures
related to the elevated inflationary and interest rate
environment, as well as growth in cards balances.
For additional information on Citi’s ACL, see
“Significant Accounting Policies and Significant Estimates”
below.
For additional information on USPB’s Branded Cards,
Retail Services and Retail Banking loan portfolios, see
“Managing Global Risk—Credit Risk—Consumer Credit”
below.
For additional information about trends, uncertainties and
risks related to USPB’s future results, see “Executive
Summary” above and “Risk Factors” below.
28
ALL OTHER—Divestiture-Related Impacts (Reconciling Items)
All Other includes activities not assigned to the reportable operating segments (Services, Markets, Banking, Wealth and USPB), which
are reported within Legacy Franchises and Corporate/Other. For additional information about Legacy Franchises and Corporate/Other,
see “All Other (Managed Basis)” below.
All Other (managed basis) results exclude divestiture-related impacts (see the “Reconciling Items” column in the table below)
related to (i) Citi’s divestitures of its Asia consumer banking businesses and (ii) the planned IPO of Mexico Consumer Banking
(Mexico Consumer) and Mexico Small Business and Middle-Market Banking (Mexico SBMM), collectively known as Mexico
Consumer/SBMM, within Legacy Franchises. Legacy Franchises (managed basis) results also exclude these divestiture-related
impacts. Certain of the results of operations of All Other (managed basis) and Legacy Franchises (managed basis) are non-GAAP
financial measures (see “Overview—Non-GAAP Financial Measures” above).
The table below presents a reconciliation from All Other (U.S. GAAP) to All Other (managed basis). All Other (U.S. GAAP), less
Reconciling Items, equals All Other (managed basis). The Reconciling Items are fully reflected on each respective line item in Citi’s
Consolidated Statement of Income.
2024
2023
2022
In millions of dollars, except as
otherwise noted
All Other
(U.S.
GAAP)
Reconciling
Items(1)
All Other
(managed
basis)
All Other
(U.S.
GAAP)
Reconciling
Items(2)
All Other
(managed
basis)
All Other
(U.S.
GAAP)
Reconciling
Items(3)
All Other
(managed
basis)
Net interest income
$
5,899 $
— $
5,899 $
7,692 $
— $
7,692 $
7,662 $
— $
7,662
Non-interest revenue
1,668
26
1,642
3,096
1,346
1,750
2,312
854
1,458
Total revenues, net of interest
expense
$
7,567 $
26 $
7,541 $ 10,788 $
1,346 $
9,442 $
9,974 $
854 $
9,120
Total operating expenses
$
9,386 $
318 $
9,068 $ 11,613 $
372 $
11,241 $
9,951 $
696 $
9,255
Net credit losses on loans
935
7
928
864
(6)
870
614
(156)
770
Credit reserve build (release)
for loans
73
—
73
66
(61)
127
(250)
259
(509)
Provision for credit losses on
unfunded lending
commitments
(16)
—
(16)
(47)
—
(47)
95
(27)
122
Provisions for benefits and
claims (PBC), other assets
and HTM debt securities
130
—
130
354
—
354
97
—
97
Provisions (benefits) for credit
losses and PBC
$
1,122 $
7 $
1,115 $
1,237 $
(67) $
1,304 $
556 $
76 $
480
Income (loss) from continuing
operations before taxes
$ (2,941) $
(299) $
(2,642) $ (2,062) $
1,041 $
(3,103) $
(533) $
82 $
(615)
Income taxes (benefits)
(274)
(92)
(182)
(597)
382
(979)
(799)
266
(1,065)
Income (loss) from continuing
operations
$ (2,667) $
(207) $
(2,460) $ (1,465) $
659 $
(2,124) $
266 $
(184) $
450
Income (loss) from
discontinued operations, net of
taxes
(2)
—
(2)
(1)
—
(1)
(231)
—
(231)
Noncontrolling interests
(30)
—
(30)
16
—
16
4
—
4
Net income (loss)
$ (2,639) $
(207) $
(2,432) $ (1,482) $
659 $
(2,141) $
31 $
(184) $
215
Asia Consumer revenues
$
845 $
26 $
819 $
2,870 $
1,346 $
1,524 $
3,780 $
854 $
2,926
(1)
2024 includes approximately $318 million (approximately $220 million after-tax) in operating expenses, primarily related to separation costs in Mexico and
severance costs in the Asia exit markets.
(2)
2023 includes (i) an approximate $1.059 billion gain on sale recorded in revenue (approximately $727 million after-tax) related to the India consumer banking
business sale; (ii) an approximate $403 million gain on sale recorded in revenue (approximately $284 million after-tax) related to the Taiwan consumer banking
business sale; and (iii) approximately $372 million (approximately $263 million after-tax) in operating expenses, primarily related to separation costs in Mexico
and severance costs in the Asia exit markets.
(3)
2022 includes (i) an approximate $535 million (approximately $489 million after-tax) goodwill write-down due to resegmentation and the timing of Asia
consumer banking business divestitures; (ii) an approximate $616 million gain on sale recorded in revenue (approximately $290 million after-tax) related to the
Philippines consumer banking business sale; (iii) an approximate $209 million gain on sale recorded in revenue (approximately $115 million after-tax) related to
the Thailand consumer banking business sale; and (iv) approximately $161 million (approximately $108 million after-tax) in operating expenses primarily related
to separation costs in Mexico and severance costs in the Asia exit markets.
29
ALL OTHER—Managed Basis
At December 31, 2024, All Other (managed basis) had $201 billion in assets, primarily related to Mexico Consumer/SBMM and Asia
Consumer reported within Legacy Franchises (managed basis), as well as Corporate Treasury investment securities and Citi’s deferred
tax assets (DTAs) reported within Corporate/Other.
Legacy Franchises (Managed Basis)
Legacy Franchises (managed basis) includes:
•
Mexico Consumer/SBMM;
•
Asia Consumer Banking (Asia Consumer), representing the consumer banking operations of the remaining three exit countries
(Korea, Poland and Russia); and
•
Legacy Holdings Assets, primarily $2.0 billion of legacy consumer mortgage loans in North America, as well as the U.K. retail
banking business, both of which Citi continues to wind down.
Since announcing its intention to exit consumer banking across 14 markets in Asia, Europe, the Middle East and Mexico as part of
its strategic refresh, Citi has now closed sales in nine of those markets, has a sale process underway in Poland and has continued to
make progress on its wind-downs in Korea and Russia. The previously announced wind-down of Citi’s consumer business in China is
substantially complete. See Note 2 for additional information on Legacy Franchises’ consumer banking business sales and wind-
downs. For additional information about Citi’s continued efforts to reduce its operations and exposures in Russia, see “Risk Factors”
and “Managing Global Risk—Other Risks—Country Risk—Russia” below.
Mexico Consumer/SBMM operates primarily through Banamex and provides traditional retail banking and branded card products
to consumers and small business customers and traditional middle-market banking products and services to commercial customers, as
well as retirement fund administration and insurance products through certain Banamex affiliate entities. As previously disclosed, Citi
completed the separation of Mexico Consumer/SBMM from its Services, Markets, Banking and Wealth businesses in Mexico in the
fourth quarter of 2024, and intends to pursue an IPO of Mexico Consumer/SBMM, the timing of which will be driven by regulatory
approvals and market conditions. Citi will retain its Services, Markets, Banking and Wealth businesses in Mexico.
At December 31, 2024, on a combined basis, Legacy Franchises (managed basis) had 1,317 retail branches, $42 billion in
deposits, $16 billion in retail banking loans and $8 billion in outstanding credit card balances, while Mexico SBMM had $6 billion in
outstanding corporate loans. For additional information on the loans and deposits of Mexico Consumer/SBMM and Asia Consumer,
see “Mexico Consumer/SBMM—” and “Asia Consumer—key indicators” in the table below.
Corporate/Other
Corporate/Other includes certain unallocated costs of global staff functions (including finance, risk, human resources, legal and
compliance-related costs), other corporate expenses and unallocated global operations and technology expenses and income taxes, as
well as results of Corporate Treasury investment activities and discontinued operations.
30
In millions of dollars, except as otherwise noted
2024
2023
2022
% Change
2024 vs. 2023
% Change
2023 vs. 2022
Net interest income
$
5,899
$
7,692
$
7,662
(23) %
— %
Non-interest revenue
1,642
1,750
1,458
(6)
20
Total revenues, net of interest expense
$
7,541
$
9,442
$
9,120
(20) %
4 %
Total operating expenses
$
9,068
$
11,241
$
9,255
(19) %
21 %
Net credit losses on loans
928
870
770
7
13
Credit reserve build (release) for loans
73
127
(509)
(43)
NM
Provision (release) for credit losses on unfunded lending
commitments
(16)
(47)
122
66
NM
Provisions (release) for benefits and claims (PBC), other
assets and HTM debt securities
130
354
97
(63)
NM
Provisions for credit losses and PBC
$
1,115
$
1,304
$
480
(14) %
NM
Income (loss) from continuing operations before taxes
$
(2,642)
$
(3,103)
$
(615)
15 %
NM
Income taxes (benefits)
(182)
(979)
(1,065)
81
8 %
Income (loss) from continuing operations
$
(2,460)
$
(2,124)
$
450
(16) %
NM
Income (loss) from discontinued operations, net of taxes
(2)
(1)
(231)
(100)
100 %
Noncontrolling interests
(30)
16
4
NM
NM
Net income (loss)
$
(2,432)
$
(2,141)
$
215
(14) %
NM
Balance Sheet data (in billions of dollars)
EOP assets
$
201
$
199
$
215
1 %
(7) %
Average assets
195
205
223
(5)
(8)
Revenue by reporting unit and component
Mexico Consumer/SBMM
$
6,172
$
5,693
$
4,651
8 %
22 %
Asia Consumer
819
1,524
2,926
(46)
(48)
Legacy Holdings Assets
(118)
110
33
NM
NM
Corporate/Other
668
2,115
1,510
(68)
40
Total
$
7,541
$
9,442
$
9,120
(20) %
4 %
Mexico Consumer/SBMM—key indicators (in billions of
dollars)
EOP loans
$
23.1
$
25.2
$
20.5
(8) %
23 %
EOP deposits
34.1
40.2
34.8
(15)
16
Average loans
24.4
22.8
18.7
7
22
NCLs as a percentage of average loans
(Mexico Consumer only)
4.52 %
4.01 %
3.50 %
Loans 90+ days past due as a percentage of EOP loans
(Mexico Consumer only)
1.43
1.35
1.28
Loans 30–89 days past due as a percentage of EOP loans
(Mexico Consumer only)
1.41
1.35
1.26
Asia Consumer—key indicators(1) (in billions of dollars)
EOP loans
$
4.7
$
7.4
$
13.3
(36) %
(44) %
EOP deposits
7.5
9.5
14.5
(21)
(34)
Average loans
5.9
9.5
17.4
(38)
(45)
Legacy Holdings Assets—key indicators (in billions of dollars)
EOP loans
$
2.2
$
2.8
$
3.4
(21) %
(18) %
Note: Certain reclassifications have been made to the prior periods’ financial statements to conform to the current period’s presentation effective as of the second
quarter of 2024, for all periods presented. During the second quarter of 2024, Citi made certain reclassifications to align with its organizational simplification and
strategy. In connection therewith, Citi transferred the retail banking business in the U.K., which is being wound down, from Wealth to Legacy Franchises
(managed basis) within All Other (managed basis).
(1)
The key indicators for Asia Consumer also reflect the reclassification of loans and deposits to Other assets and Other liabilities under HFS accounting on Citi’s
Consolidated Balance Sheet.
NM Not meaningful
31
2024 vs. 2023
Net loss was $2.4 billion, compared to a net loss of $2.1
billion in the prior year, driven by lower revenues and lower
income tax benefits due to the absence of discrete tax benefits
recognized in the prior year, partially offset by lower expenses
and lower cost of credit.
All Other (managed basis) revenues of $7.5 billion
decreased 20%, driven by lower revenues in Corporate/Other
and Legacy Franchises (managed basis).
Legacy Franchises (managed basis) revenues of $6.9
billion decreased 6%, due to lower revenues in Asia Consumer
(managed basis) and Legacy Holdings Assets, partially offset
by higher revenues in Mexico Consumer/SBMM (managed
basis).
Mexico Consumer/SBMM (managed basis) revenues of
$6.2 billion increased 8%, primarily due to higher loan
balances in retail banking, cards and SBMM, and higher
deposits in SBMM.
Asia Consumer (managed basis) revenues of $819 million
decreased 46%, primarily driven by the reduction from the
closed exits and wind-downs.
Legacy Holdings Assets revenues decreased to $(118)
million, compared to $110 million in the prior year, primarily
due to higher funding costs related to the transfer of the retail
banking business in the U.K.
Corporate/Other revenues decreased to $668 million,
compared to $2.1 billion in the prior year, largely driven by
the net investment securities losses due to the repositioning of
the investment securities portfolio and higher funding costs.
Expenses decreased 19%, primarily driven by lower FDIC
expenses ($203 million in 2024 versus approximately $1.7
billion in the prior year) and the reduction from the closed
exits and wind-downs, as well as lower restructuring charges
($259 million in 2024 versus $781 million in the prior year),
partially offset by the costs of the July 2024 Consent Orders
entered into with the FRB and OCC.
Provisions were $1.1 billion, compared to $1.3 billion in
the prior year, largely driven by a smaller ACL build for
transfer risk associated with exposures outside the U.S., driven
by safety and soundness considerations under U.S. banking
law, partially offset by a 7% increase in net credit losses,
primarily driven by the ongoing normalization from post-
pandemic lows in Mexico Consumer.
For additional information on Citi’s ACL, see
“Significant Accounting Policies and Significant Estimates”
below.
For additional information about trends, uncertainties and
risks related to All Other’s (managed basis) future results, see
“Executive Summary” above and “Risk Factors” and
“Managing Global Risk—Other Risks—Country Risk—
Russia” below.
32
CAPITAL RESOURCES
Overview
Citi uses capital principally to support its businesses and to
absorb potential losses, including credit, market and
operational losses. Citi primarily generates capital through
earnings from its operating businesses. Citi may augment its
capital through issuances of common stock and noncumulative
perpetual preferred stock, among other issuances. Further,
Citi’s capital levels may also be affected by changes in
accounting and regulatory standards, as well as the impact of
future events on Citi’s business results, such as acquisitions
and divestitures and changes in interest and foreign exchange
rates.
During 2024, Citi returned a total of $6.7 billion of capital
to common shareholders in the form of $4.2 billion in
dividends and $2.5 billion in share repurchases (approximately
44 million common shares).
For additional information, see “Unregistered Sales of
Equity Securities, Repurchases of Equity Securities and
Dividends” below.
Citi paid common dividends of $0.56 per share for the
fourth quarter of 2024, and on January 11, 2025, declared
common dividends of $0.56 per share for the first quarter of
2025. Citi plans to maintain a quarterly common dividend of
$0.56 per share, subject to financial and macroeconomic
conditions as well as its Board of Directors’ approval.
On January 13, 2025, Citigroup’s Board of Directors
authorized a new, multiyear $20 billion common stock
repurchase program, beginning in the first quarter of 2025.
Repurchases by Citigroup under this common stock
repurchase program are subject to quarterly approval by
Citigroup’s Board of Directors; may be effected from time to
time through open market purchases, trading plans established
in accordance with SEC rules or other means; and, as
determined by Citigroup, may be subject to satisfactory
market conditions, Citigroup’s capital position and capital
requirements, applicable legal requirements and other factors.
As previously announced, during the first quarter of
2025, Citi plans to repurchase $1.5 billion of common shares,
subject to market conditions and other factors. After the first
quarter of 2025, Citi will continue to assess common share
repurchases on a quarter-by-quarter basis.
For additional information on capital-related risks, trends
and uncertainties, see “Regulatory Capital Standards and
Developments” as well as “Risk Factors—Strategic Risks,”
“—Operational Risks” and “—Compliance Risks” below.
Capital Management
Citi’s capital management framework is designed to ensure
that Citigroup and its principal subsidiaries maintain sufficient
capital consistent with each entity’s respective risk profile,
management targets and all applicable regulatory standards
and guidelines. Citi assesses its capital adequacy against a
series of internal quantitative capital goals, designed to
evaluate its capital levels in expected and stressed economic
environments. Underlying these internal quantitative capital
goals are strategic capital considerations, centered on
preserving and building financial strength.
Citi’s Chief Risk Officer (CRO) and Chief Financial
Officer (CFO) co-chair Citigroup’s Capital Committee, which
includes Citi’s Treasurer and other senior executives. The
Citigroup Capital Committee, with oversight from the Risk
Management Committee of Citigroup’s Board of Directors,
has responsibility for Citi’s aggregate capital structure,
including the capital assessment and planning process, which
is integrated into Citi’s capital plan. Balance sheet
management, including oversight of capital adequacy for
Citigroup’s subsidiaries, is governed by each entity’s Asset
and Liability Committee, where applicable.
For additional information regarding Citi’s capital
planning and stress testing exercises, see “Stress Testing
Component of Capital Planning” below.
Current Regulatory Capital Standards
Citi is subject to regulatory capital rules issued by the FRB, in
coordination with the OCC and FDIC, including the U.S.
implementation of the Basel III rules (for information on
potential changes to the Basel III rules, see “Regulatory
Capital Standards and Developments” and “Risk Factors—
Strategic Risks” below). These rules establish an integrated
capital adequacy framework, encompassing both risk-based
capital ratios and leverage ratios. Banking and broker-dealer
subsidiaries of Citigroup are also subject to local capital
requirements in the jurisdictions in which they operate, which
impact allocations of capital within Citigroup, and may restrict
the ability to remit earnings to Citigroup. The availability of
such earnings may impact the ability of Citigroup to engage in
return of capital to common shareholders in the form of
dividends and share repurchases, absorb potential losses and
support business growth.
Risk-Based Capital Ratios
The U.S. Basel III rules set forth the composition of regulatory
capital (including the application of regulatory capital
adjustments and deductions), as well as two comprehensive
methodologies (a Standardized Approach and Advanced
Approaches) for measuring total risk-weighted assets.
Total risk-weighted assets under the Standardized
Approach include credit and market risk-weighted assets,
which are generally prescribed supervisory risk weights. Total
risk-weighted assets under the Advanced Approaches, which
are primarily model based, include credit, market and
operational risk-weighted assets. As a result, credit risk-
weighted assets calculated under the Advanced Approaches
are more risk sensitive than those calculated under the
Standardized Approach. Market risk-weighted assets are
currently calculated on a generally consistent basis under both
the Standardized and Advanced Approaches. The
Standardized Approach does not include operational risk-
weighted assets.
Under the U.S. Basel III rules, Citigroup is required to
maintain several regulatory capital buffers above the stated
minimum capital requirements to avoid certain limitations on
capital distributions and discretionary bonus payments to
executive officers. Accordingly, for the fourth quarter of 2024,
Citigroup’s required regulatory CET1 Capital ratio was 12.1%
under the Standardized Approach (incorporating its Stress
Capital Buffer of 4.1% and GSIB (Global Systemically
33
Important Bank) surcharge of 3.5%) and 10.5% under the
Advanced Approaches (inclusive of the fixed 2.5% Capital
Conservation Buffer and GSIB surcharge of 3.5%).
Similarly, Citigroup’s primary subsidiary, Citibank, N.A.
(Citibank), is required to maintain minimum regulatory capital
ratios plus applicable regulatory buffers, as well as hold
sufficient capital to be considered “well capitalized” under the
Prompt Corrective Action framework. In effect, Citibank’s
required CET1 Capital ratio was 7.0% under both the
Standardized and Advanced Approaches, which is the sum of
the minimum 4.5% CET1 requirement and a fixed 2.5%
Capital Conservation Buffer. For additional information, see
“Regulatory Capital Buffers” and “Prompt Corrective Action
Framework” below.
Further, the U.S. Basel III rules implement the “capital
floor provision” of the Dodd-Frank Act (the so-called “Collins
Amendment”), which requires banking organizations to
calculate “generally applicable” capital requirements. As a
result, Citi must calculate each of the three risk-based capital
ratios (CET1 Capital, Tier 1 Capital and Total Capital) under
both the Standardized Approach and the Advanced
Approaches and comply with the more binding of each of the
resulting risk-based capital ratios.
Leverage Ratio
Under the U.S. Basel III rules, Citigroup is also required to
maintain a minimum Leverage ratio of 4.0%. Similarly,
Citibank is required to maintain a minimum Leverage ratio of
5.0% to be considered “well capitalized” under the Prompt
Corrective Action framework. The Leverage ratio, a non-risk-
based measure of capital adequacy, is defined as Tier 1 Capital
as a percentage of quarterly adjusted average total assets less
amounts deducted from Tier 1 Capital.
Supplementary Leverage Ratio
Citi is also required to calculate a Supplementary Leverage
ratio (SLR), which differs from the Leverage ratio by
including certain off-balance sheet exposures within the
denominator of the ratio (Total Leverage Exposure). The SLR
represents end-of-period Tier 1 Capital to Total Leverage
Exposure. Total Leverage Exposure is defined as the sum of
(i) the daily average of on-balance sheet assets for the quarter
and (ii) the average of certain off-balance sheet exposures
calculated as of the last day of each month in the quarter, less
applicable Tier 1 Capital deductions. Advanced Approaches
banking organizations are required to maintain a stated
minimum SLR of 3.0%.
Further, U.S. GSIBs, including Citigroup, are subject to a
2.0% leverage buffer in addition to the 3.0% stated minimum
SLR requirement, resulting in a 5.0% SLR. If a U.S. GSIB
fails to exceed this requirement, it will be subject to
increasingly stringent restrictions (depending upon the extent
of the shortfall) on capital distributions and discretionary
executive bonus payments.
Similarly, Citibank is required to maintain a minimum
SLR of 6.0% to be considered “well capitalized” under the
Prompt Corrective Action framework.
Regulatory Capital Treatment—Modified Transition of the
Current Expected Credit Losses Methodology
In 2020, the U.S. banking agencies issued a final rule that
modified the regulatory capital transition provision related to
the current expected credit losses (CECL) methodology. The
rule does not have any impact on U.S. GAAP accounting.
The rule permitted banks to delay for two years the “Day
One” adverse regulatory capital effects resulting from
adoption of the CECL methodology on January 1, 2020 until
January 1, 2022, followed by a three-year transition to phase
out the regulatory capital benefit provided by the delay.
In addition, for the ongoing impact of CECL, the agencies
utilized a 25% scaling factor as an approximation of the
increased reserve build under CECL compared to the previous
incurred loss model and, therefore, allowed banks to add back
to CET1 Capital an amount equal to 25% of the change in
CECL-based allowances in each quarter between January 1,
2020 and December 31, 2021. Beginning January 1, 2022, the
cumulative 25% change in CECL-based allowances between
January 1, 2020 and December 31, 2021 started to be phased
in to regulatory capital (i) at 25% per year on January 1 of
each year over the three-year transition period and (ii) along
with the delayed Day One impact.
Citigroup and Citibank elected the modified CECL
transition provision provided by the rule. Accordingly, the
Day One regulatory capital effects resulting from adoption of
the CECL methodology, as well as the ongoing adjustments
for 25% of the change in CECL-based allowances in each
quarter between January 1, 2020 and December 31, 2021,
started to be phased in on January 1, 2022 and were fully
reflected in Citi’s regulatory capital as of January 1, 2025.
As of December 31, 2024, Citigroup’s reported
Standardized Approach CET1 Capital ratio of 13.6% benefited
from the deferrals of the CECL transition provision by 8 basis
points. For additional information on Citigroup’s and
Citibank’s regulatory capital ratios excluding the impact of the
CECL transition provision, see “Capital Resources (Full
Adoption of CECL)” below.
Regulatory Capital Buffers
Citigroup and Citibank are required to maintain several
regulatory capital buffers above the stated minimum capital
requirements. These capital buffers would be available to
absorb losses in advance of any potential impairment of
regulatory capital below the stated minimum regulatory capital
ratio requirements.
Banking organizations that fall below their regulatory
capital buffers are subject to limitations on capital
distributions and discretionary bonus payments to executive
officers based on a percentage of “Eligible Retained
Income” (ERI), with increasing restrictions based on the
severity of the breach. ERI is equal to the greater of (i) the
bank’s net income for the four calendar quarters preceding the
current calendar quarter, net of any distributions and tax
effects not already reflected in net income, and (ii) the average
of the bank’s net income for the four calendar quarters
preceding the current calendar quarter.
As of December 31, 2024, Citi’s regulatory capital ratios
exceeded the regulatory capital requirements. Accordingly,
34
Citi is not subject to payout limitations as a result of the U.S.
Basel III requirements.
Stress Capital Buffer
Citigroup is subject to the FRB’s Stress Capital Buffer (SCB)
rule, which integrates the annual stress testing requirements
with ongoing regulatory capital requirements. The SCB equals
the peak-to-trough CET1 Capital ratio decline under the
Supervisory Severely Adverse scenario over a nine-quarter
period used in the Comprehensive Capital Analysis and
Review (CCAR) and Dodd-Frank Act Stress Testing
(DFAST), plus four quarters of planned common stock
dividends, subject to a floor of 2.5%. SCB-based capital
requirements are reviewed and updated annually by the FRB
as part of the CCAR process. For additional information
regarding CCAR and DFAST, see “Stress Testing Component
of Capital Planning” below. The fixed 2.5% Capital
Conservation Buffer will continue to apply under the
Advanced Approaches (see below).
As of October 1, 2024, Citi’s required regulatory CET1
Capital ratio decreased to 12.1% from 12.3% under the
Standardized Approach, incorporating the 4.1% SCB through
September 30, 2025 and Citi’s current GSIB surcharge of
3.5%. Citi’s required regulatory CET1 Capital ratio under the
Advanced Approaches (using the fixed 2.5% Capital
Conservation Buffer) remains unchanged at 10.5%. The SCB
applies to Citigroup only; the regulatory capital framework
applicable to Citibank, including the Capital Conservation
Buffer, is unaffected by Citigroup’s SCB.
Capital Conservation Buffer and Countercyclical Capital
Buffer
Citigroup is subject to a fixed 2.5% Capital Conservation
Buffer under the Advanced Approaches. Citibank is subject to
the fixed 2.5% Capital Conservation Buffer under both the
Advanced Approaches and the Standardized Approach.
In addition, Advanced Approaches banking organizations,
such as Citigroup and Citibank, are subject to a discretionary
Countercyclical Capital Buffer. The Countercyclical Capital
Buffer is currently set at 0% by the U.S. banking agencies.
GSIB Surcharge
The FRB imposes a risk-based capital surcharge upon U.S.
bank holding companies that are identified as GSIBs,
including Citi (for information on potential changes to the
GSIB surcharge, see “Regulatory Capital Standards and
Developments” and “Risk Factors—Strategic Risks” below).
The GSIB surcharge augments the SCB, Capital Conservation
Buffer and, if invoked, any Countercyclical Capital Buffer.
Citi, as a GSIB, is annually required to calculate a
surcharge using two methods and is subject to the higher of
the resulting two surcharges. The first method (method 1) is
based on the Basel Committee’s GSIB methodology. Under
the second method (method 2), the substitutability category
under the Basel Committee’s GSIB methodology is replaced
with a quantitative measure intended to assess a GSIB’s
reliance on short-term wholesale funding. In addition, method
1 incorporates relative measures of systemic importance
across certain global banking organizations and a year-end
spot foreign exchange rate, whereas method 2 uses fixed
measures of systemic importance and application of an
average foreign exchange rate over a three-year period. The
GSIB surcharges calculated under both method 1 and method
2 are based on measures of systemic importance from the year
immediately preceding that in which the GSIB surcharge
calculations are being performed (e.g., the method 1 and
method 2 GSIB surcharges calculated during 2025 will be
based on 2024 systemic indicator data). Generally, Citi’s
surcharge determined under method 2 will be higher than its
surcharge determined under method 1.
Should a GSIB’s systemic importance change year-over-
year, such that it becomes subject to a higher GSIB surcharge,
the higher surcharge would become effective on January 1 of
the year that is one full calendar year after the increased GSIB
surcharge was calculated (e.g., a higher surcharge calculated
in 2025 using data as of December 31, 2024 would not
become effective until January 1, 2027). However, if a GSIB’s
systemic importance changes such that the GSIB would be
subject to a lower surcharge, the GSIB would be subject to the
lower surcharge on January 1 of the year immediately
following the calendar year in which the decreased GSIB
surcharge was calculated (e.g., a lower surcharge calculated in
2025 using data as of December 31, 2024 would become
effective January 1, 2026).
The following table presents Citi’s effective GSIB
surcharge as determined under method 1 and method 2 during
2024 and 2023:
2024
2023
Method 1
2.0 %
2.0 %
Method 2
3.5
3.5
Citi’s GSIB surcharge effective during 2024 and 2023
was 3.5%, as derived under the higher method 2 result. For
2025, Citi’s GSIB surcharge remains unchanged at 3.5%, as
derived under the higher method 2 result.
Citi expects that its method 2 GSIB surcharge will
continue to remain higher than its method 1 GSIB surcharge.
Based on Citi’s method 2 result as of December 31, 2023 and
as of December 31, 2024, Citi’s GSIB surcharge is expected to
remain at 3.5% for 2026.
Prompt Corrective Action Framework
In general, the Prompt Corrective Action (PCA) regulations
direct the U.S. banking agencies to enforce increasingly strict
limitations on the activities of insured depository institutions
that fail to meet certain regulatory capital thresholds. The PCA
framework contains five categories of capital adequacy as
measured by risk-based capital and leverage ratios: (i) “well
capitalized,” (ii) “adequately capitalized,” (iii)
“undercapitalized,” (iv) “significantly undercapitalized” and
(v) “critically undercapitalized.”
Accordingly, an insured depository institution, such as
Citibank, must maintain minimum CET1 Capital, Tier 1
Capital, Total Capital and Leverage ratios of 6.5%, 8.0%,
10.0% and 5.0%, respectively, to be considered “well
capitalized.” In addition, insured depository institution
subsidiaries of U.S. GSIBs, including Citibank, must maintain
a minimum Supplementary Leverage ratio of 6.0% to be
35
considered “well capitalized.” Citibank was “well capitalized”
as of December 31, 2024.
Furthermore, to be “well capitalized” under current
federal bank regulatory agency definitions, a bank holding
company must have a Tier 1 Capital ratio of at least 6.0%, a
Total Capital ratio of at least 10.0% and not be subject to a
FRB directive to maintain higher capital levels.
Stress Testing Component of Capital Planning
Citi is subject to an annual assessment by the FRB as to
whether Citigroup has effective capital planning processes as
well as sufficient regulatory capital to absorb losses during
stressful economic and financial conditions, while also
meeting obligations to creditors and counterparties and
continuing to serve as a credit intermediary. This annual
assessment includes two related programs: the Comprehensive
Capital Analysis and Review (CCAR) and Dodd-Frank Act
Stress Testing (DFAST).
For the largest and most complex firms, such as Citi,
CCAR includes a qualitative evaluation of a firm’s abilities to
determine its capital needs on a forward-looking basis. In
conducting the qualitative assessment, the FRB evaluates
firms’ capital planning practices, focusing on six areas of
capital planning: governance, risk management, internal
controls, capital policies, incorporating stressful conditions
and events, and estimating impact on capital positions. As part
of the CCAR process, the FRB evaluates Citi’s capital
adequacy, capital adequacy process and its planned capital
distributions, such as dividend payments and common share
repurchases. The FRB assesses whether Citi has sufficient
capital to continue operations throughout times of economic
and financial market stress and whether Citi has robust,
forward-looking capital planning processes that account for its
unique risks.
All CCAR firms, including Citi, are subject to a rigorous
evaluation of their capital planning process. Firms with weak
practices may be subject to a deficient supervisory rating, and
potentially an enforcement action, for failing to meet
supervisory expectations. For additional information regarding
CCAR, see “Risk Factors—Strategic Risks” below.
DFAST is a forward-looking quantitative evaluation of
the impact of stressful economic and financial market
conditions on Citi’s regulatory capital. This program serves to
inform the FRB and the general public as to how Citi’s
regulatory capital ratios might change using a hypothetical set
of adverse economic conditions as designed by the FRB. In
addition to the annual supervisory stress test conducted by the
FRB, Citi is required to conduct annual company-run stress
tests under the same adverse economic conditions designed by
the FRB.
Both CCAR and DFAST include an estimate of projected
revenues, losses, reserves, pro forma regulatory capital ratios
and any other additional capital measures deemed relevant by
Citi. Projections are required over a nine-quarter planning
horizon under two supervisory scenarios (baseline and
severely adverse conditions). All risk-based capital ratios
reflect application of the Standardized Approach framework
under the U.S. Basel III rules.
In addition, Citibank is required to conduct the annual
Dodd-Frank Act Stress Test. The annual stress test consists of
a forward-looking quantitative evaluation of the impact of
stressful economic and financial market conditions under
several scenarios on Citibank’s regulatory capital. This
program serves to inform the Office of the Comptroller of the
Currency as to how Citibank’s regulatory capital ratios might
change during a hypothetical set of adverse economic
conditions and to ultimately evaluate the reliability of
Citibank’s capital planning process.
Citigroup and Citibank are required to disclose the results
of their company-run stress tests.
36
Citigroup’s Capital Resources
The following table presents Citi’s required risk-based capital ratios as of December 31, 2024, September 30, 2024 and December 31,
2023:
Advanced Approaches(1)
Standardized Approach(2)
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
September 30,
2024
December 31,
2023
CET1 Capital ratio
10.5 %
10.5 %
10.5 %
12.1 %
12.3 %
12.3 %
Tier 1 Capital ratio
12.0
12.0
12.0
13.6
13.8
13.8
Total Capital ratio
14.0
14.0
14.0
15.6
15.8
15.8
(1)
For all periods presented, Citi’s required risk-based capital ratios under the Advanced Approaches included the 2.5% Capital Conservation Buffer and 3.5% GSIB
surcharge (all of which must be composed of CET1 Capital).
(2)
Beginning October 1, 2024, Citi’s required risk-based capital ratios under the Standardized Approach included the 4.1% SCB through September 30, 2025 and
3.5% GSIB surcharge (all of which must be composed of CET1 Capital). For prior periods presented, Citi’s required risk-based capital ratios under the
Standardized Approach included the 4.3% SCB and 3.5% GSIB surcharge. See “Regulatory Capital Buffers” above.
The following tables present Citi’s capital components and ratios as of December 31, 2024, September 30, 2024 and December 31,
2023:
Advanced Approaches
Standardized Approach
In millions of dollars, except ratios
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
September 30,
2024
December 31,
2023
CET1 Capital(1)
$
155,363
$
158,106
$
153,595
$
155,363
$
158,106
$
153,595
Tier 1 Capital(1)
174,527
175,788
172,504
174,527
175,788
172,504
Total Capital (Tier 1 Capital + Tier 2
Capital)(1)
197,371
197,784
191,919
205,827
206,434
201,768
Total Risk-Weighted Assets
1,280,190
1,300,152
1,268,723
1,139,988
1,153,150
1,148,608
Credit Risk(1)
$
901,345
$
918,595
$
910,226
$ 1,073,354
$ 1,085,499
$ 1,087,019
Market Risk
66,221
67,269
61,194
66,634
67,651
61,589
Operational Risk
312,624
314,288
297,303
—
—
—
CET1 Capital ratio(2)
12.14 %
12.16 %
12.11 %
13.63 %
13.71 %
13.37 %
Tier 1 Capital ratio(2)
13.63
13.52
13.60
15.31
15.24
15.02
Total Capital ratio(2)
15.42
15.21
15.13
18.06
17.90
17.57
In millions of dollars, except ratios
Required
Capital Ratios
December 31, 2024
September 30, 2024
December 31, 2023
Quarterly Adjusted Average Total Assets(1)(3)
$
2,433,364
$
2,455,486
$
2,394,272
Total Leverage Exposure(1)(4)
2,985,418
3,005,709
2,964,954
Leverage ratio
4.0%
7.17 %
7.16 %
7.20 %
Supplementary Leverage ratio
5.0
5.85
5.85
5.82
(1)
Citi’s regulatory capital ratios and components reflect certain deferrals based on the modified regulatory capital transition provision related to the CECL standard.
See “Capital Resources—Regulatory Capital Treatment—Modified Transition of the Current Expected Credit Losses Methodology” above.
(2)
Citi’s binding CET1 Capital and Tier 1 Capital ratios were derived under the Basel III Standardized Approach, whereas Citi’s binding Total Capital ratio was
derived under the Basel III Advanced Approaches framework for all periods presented. As of September 30, 2024, the Total Capital ratio under the Basel III
Advanced Approaches framework was the most binding ratio. For all other periods presented, the CET1 Capital ratio under the Basel III Standardized Approach
was the most binding ratio.
(3)
Leverage ratio denominator. Represents quarterly average total assets less amounts deducted from Tier 1 Capital.
(4)
Supplementary Leverage ratio denominator.
As indicated in the table above, Citigroup’s capital ratios
at December 31, 2024 were in excess of the regulatory capital
requirements under the U.S. Basel III rules. In addition, Citi
was “well capitalized” under current federal bank regulatory
agencies definitions as of December 31, 2024.
37
Common Equity Tier 1 Capital Ratio
Citi’s Common Equity Tier 1 (CET1) Capital ratio under the
Basel III Standardized Approach was 13.6% as of
December 31, 2024, relative to a required regulatory CET1
Capital ratio of 12.1% as of such date under the Standardized
Approach. This compares to a CET1 Capital ratio of 13.7% as
of September 30, 2024 and 13.4% as of December 31, 2023,
relative to a required regulatory CET1 Capital ratio of 12.3%
as of such dates under the Standardized Approach.
Citi’s CET1 Capital ratio under the Basel III Advanced
Approaches was 12.1% as of December 31, 2024, 12.2% as of
September 30, 2024, and 12.1% as of December 31, 2023,
relative to a required regulatory CET1 Capital ratio of 10.5%
as of such dates under the Advanced Approaches framework.
Citi’s CET1 Capital ratio decreased under both the
Standardized Approach and Advanced Approaches from
September 30, 2024, driven primarily by net adverse
movements in AOCI and the payment of common and
preferred dividends as well as common share repurchases,
partially offset by net income and decreases in Standardized
Approach RWA and Advanced Approaches RWA.
Citi’s CET1 Capital ratio increased under the
Standardized Approach from year-end 2023, driven primarily
by net income and a decrease in RWA, partially offset by the
payment of common and preferred dividends, common share
repurchases and net adverse movements in AOCI.
Citi’s CET1 Capital ratio under the Advanced Approaches
framework was largely unchanged from year-end 2023, as the
payment of common and preferred dividends, common share
repurchases, net adverse movements in AOCI and an increase
in RWA were offset by net income.
38
Components of Citigroup Capital
In millions of dollars
December 31,
2024
December 31,
2023
CET1 Capital
Citigroup common stockholders’ equity(1)
$
190,815 $
187,937
Add: Qualifying noncontrolling interests
186
153
Regulatory capital adjustments and deductions:
Add: CECL transition provision(2)
757
1,514
Less: Accumulated net unrealized gains (losses) on cash flow hedges, net of tax
(220)
(1,406)
Less: Cumulative unrealized net gain (loss) related to changes in fair value of financial liabilities
attributable to own creditworthiness, net of tax
(910)
(410)
Less: Intangible assets:
Goodwill, net of related DTLs(3)
17,994
18,778
Identifiable intangible assets other than MSRs, net of related DTLs
3,357
3,349
Less: Defined benefit pension plan net assets and other
1,504
1,317
Less: DTAs arising from net operating loss, foreign tax credit and general business credit
carry-forwards(4)
11,628
12,075
Less: Excess over 10%/15% limitations for other DTAs, certain common stock investments
and MSRs(4)(5)
3,042
2,306
Total CET1 Capital (Standardized Approach and Advanced Approaches)
$
155,363 $
153,595
Additional Tier 1 Capital
Qualifying noncumulative perpetual preferred stock(1)
$
17,783 $
17,516
Qualifying trust preferred securities(6)
1,422
1,413
Qualifying noncontrolling interests
30
29
Regulatory capital deductions:
Less: Other
71
49
Total Additional Tier 1 Capital (Standardized Approach and Advanced Approaches)
$
19,164 $
18,909
Total Tier 1 Capital (CET1 Capital + Additional Tier 1 Capital)
(Standardized Approach and Advanced Approaches)
$
174,527 $
172,504
Tier 2 Capital
Qualifying subordinated debt
$
18,185 $
16,137
Qualifying noncontrolling interests
38
37
Eligible allowance for credit losses(2)(7)
13,560
13,703
Regulatory capital deduction:
Less: Other
483
613
Total Tier 2 Capital (Standardized Approach)
$
31,300 $
29,264
Total Capital (Tier 1 Capital + Tier 2 Capital) (Standardized Approach)
$
205,827 $
201,768
Adjustment for excess of eligible credit reserves over expected credit losses(2)(7)
$
(8,456) $
(9,849)
Total Tier 2 Capital (Advanced Approaches)
$
22,844 $
19,415
Total Capital (Tier 1 Capital + Tier 2 Capital) (Advanced Approaches)
$
197,371 $
191,919
(1)
Issuance costs of $67 million and $84 million related to outstanding noncumulative perpetual preferred stock at December 31, 2024 and 2023, respectively, were
excluded from common stockholders’ equity and netted against such preferred stock in accordance with FRB regulatory reporting requirements, which differ from
those under U.S. GAAP.
(2)
Citi’s regulatory capital ratios and components reflect certain deferrals based on the modified regulatory capital transition provision related to the CECL standard.
See “Capital Resources—Regulatory Capital Treatment—Modified Transition of the Current Expected Credit Losses Methodology” above.
(3)
Includes goodwill “embedded” in the valuation of significant common stock investments in unconsolidated financial institutions.
(4)
Of Citi’s $29.8 billion of net DTAs at December 31, 2024, $11.6 billion of net DTAs arising from net operating loss, foreign tax credit and general business credit
tax carry-forwards, as well as $3.0 billion of DTAs arising from temporary differences that exceeded the 10% limitation, were excluded from Citi’s CET1 Capital
as of December 31, 2024. DTAs arising from net operating loss, foreign tax credit and general business credit tax carry-forwards are required to be entirely
deducted from CET1 Capital under the U.S. Basel III rules. DTAs arising from temporary differences are required to be deducted from capital only if they exceed
10%/15% limitations under the U.S. Basel III rules.
(5)
Assets subject to 10%/15% limitations include MSRs, DTAs arising from temporary differences and significant common stock investments in unconsolidated
financial institutions. At December 31, 2024 and 2023, this deduction related only to DTAs arising from temporary differences that exceeded the 10% limitation.
(6)
Represents Citigroup Capital XIII trust preferred securities, which are permanently grandfathered as Tier 1 Capital under the U.S. Basel III rules.
39
(7)
Under the Standardized Approach, the allowance for credit losses is eligible for inclusion in Tier 2 Capital up to 1.25% of credit risk-weighted assets, with any
excess allowance for credit losses being deducted in arriving at credit risk-weighted assets, which differs from the Advanced Approaches framework, in which
eligible credit reserves that exceed expected credit losses are eligible for inclusion in Tier 2 Capital to the extent that the excess reserves do not exceed 0.6% of
credit risk-weighted assets. The total amount of eligible credit reserves in excess of expected credit losses that were eligible for inclusion in Tier 2 Capital, subject
to limitation, under the Advanced Approaches framework were $5.1 billion and $3.9 billion at December 31, 2024 and 2023, respectively.
40
Citigroup Capital Rollforward
In millions of dollars
Three months ended
December 31, 2024
Twelve months ended
December 31, 2024
CET1 Capital, beginning of period
$
158,106 $
153,595
Net income (loss)
2,856
12,682
Common and preferred dividends declared
(1,331)
(5,271)
Treasury stock
(1,002)
(1,604)
Common stock and additional paid-in capital
152
145
CTA net of hedges, net of tax
(2,891)
(5,161)
Unrealized gains (losses) on debt securities AFS, net of tax
(489)
907
Defined benefit plans liability adjustment, net of tax
118
423
Adjustment related to change in fair value of financial liabilities attributable to
own creditworthiness, net of tax(1)
49
89
Other Accumulated other comprehensive income (loss) (AOCI)
9
4
Goodwill, net of related DTLs
403
784
Identifiable intangible assets other than MSRs, net of related DTLs
(296)
(8)
Defined benefit pension plan net assets
(34)
(133)
DTAs arising from net operating loss, foreign tax credit and general business
credit carry-forwards
(310)
447
Excess over 10%/15% limitations for other DTAs, certain common stock
investments and MSRs
29
(736)
CECL transition provision
—
(757)
Other
(6)
(43)
Net change in CET1 Capital
$
(2,743) $
1,768
CET1 Capital, end of period (Standardized Approach and Advanced Approaches)
$
155,363 $
155,363
Additional Tier 1 Capital, beginning of period
$
17,682 $
18,909
Qualifying perpetual preferred stock
1,496
267
Qualifying trust preferred securities
2
9
Other
(16)
(21)
Net change in Additional Tier 1 Capital
$
1,482 $
255
Tier 1 Capital, end of period (Standardized Approach and Advanced Approaches)
$
174,527 $
174,527
Tier 2 Capital, beginning of period (Standardized Approach)
$
30,646 $
29,264
Qualifying subordinated debt
642
2,048
Eligible allowance for credit losses
(150)
(143)
Other
162
131
Net change in Tier 2 Capital (Standardized Approach)
$
654 $
2,036
Tier 2 Capital, end of period (Standardized Approach)
$
31,300 $
31,300
Total Capital, end of period (Standardized Approach)
$
205,827 $
205,827
Tier 2 Capital, beginning of period (Advanced Approaches)
$
21,996 $
19,415
Qualifying subordinated debt
642
2,048
Excess of eligible credit reserves over expected credit losses
44
1,250
Other
162
131
Net change in Tier 2 Capital (Advanced Approaches)
$
848 $
3,429
Tier 2 Capital, end of period (Advanced Approaches)
$
22,844 $
22,844
Total Capital, end of period (Advanced Approaches)
$
197,371 $
197,371
(1)
Includes the changes in Citigroup (own credit) credit valuation adjustments (CVA) attributable to own creditworthiness, net of tax.
41
Citigroup Risk-Weighted Assets Rollforward (Basel III Standardized Approach)
In millions of dollars
Three months ended
December 31, 2024
Twelve months ended
December 31, 2024
Total Risk-Weighted Assets, beginning of period
$
1,153,150 $
1,148,608
General credit risk exposures(1)
(2,728)
(1,905)
Derivatives(2)
(4,542)
(6,898)
Repo-style transactions(3)
(5,513)
308
Securitization exposures
361
972
Equity exposures(4)
262
(7,914)
Other exposures
15
1,772
Net change in Credit Risk-Weighted Assets
$
(12,145) $
(13,665)
Net change in Market Risk-Weighted Assets(5)
$
(1,017) $
5,045
Total Risk-Weighted Assets, end of period
$
1,139,988 $
1,139,988
(1)
General credit risk exposures include cash and balances due from depository institutions, securities, and loans and leases. General credit risk exposures decreased
during the three and 12 months ended December 31, 2024, attributable to changes in lending exposures and hedging activities, partially offset by an increase in
card activities.
(2)
Derivatives decreased during the three and 12 months ended December 31, 2024, mainly driven by changes in exposures.
(3)
Repo-style transactions include repurchase and reverse repurchase transactions, as well as securities borrowing and securities lending transactions. Repo-style
transactions decreased during the three months ended December 31, 2024, mainly due to business activities.
(4)
Equity exposures decreased during the 12 months ended December 31, 2024, primarily driven by activities related to the Visa B exchange completed in the
second quarter of 2024.
(5)
Market risk increased during the 12 months ended December 31, 2024, primarily due to model changes, model parameter updates and changes in exposures.
42
Citigroup Risk-Weighted Assets Rollforward (Basel III Advanced Approaches)
In millions of dollars
Three months ended
December 31, 2024
Twelve months ended
December 31, 2024
Total Risk-Weighted Assets, beginning of period
$
1,300,152 $
1,268,723
General credit risk exposures(1)
3,212
24,303
Derivatives(2)
(18,739)
(20,146)
Repo-style transactions(3)
(3,743)
(10,473)
Securitization exposures(4)
1,505
2,183
Equity exposures(5)
270
(8,234)
Other exposures(6)
245
3,486
Net change in Credit Risk-Weighted Assets
$
(17,250) $
(8,881)
Net change in Market Risk-Weighted Assets(7)
$
(1,048) $
5,027
Net change in Operational Risk-Weighted Assets(8)
$
(1,664) $
15,321
Total Risk-Weighted Assets, end of period
$
1,280,190 $
1,280,190
(1)
General credit risk exposures include cash and balances due from depository institutions, securities, and loans and leases. General credit risk exposures increased
during the three and 12 months ended December 31, 2024, mainly driven by card activities, lending exposures and deposits, as well as model enhancements and
risk-weighting parameter updates.
(2)
Derivative exposures decreased during the three and 12 months ended December 31, 2024, primarily driven by model enhancements and changes in exposures.
(3)
Repo-style transactions decreased during the three and 12 months ended December 31, 2024, primarily driven by business activities.
(4)
Securitizations exposures increased during the three and 12 months ended December 31, 2024, mainly driven by changes in exposures and risk-weighting
parameters.
(5)
Equity exposures decreased during the 12 months ended December 31, 2024, primarily driven by activities related to the Visa B exchange completed in the
second quarter of 2024.
(6)
Other exposures increased during the 12 months ended December 31, 2024, mainly due to accounts receivable and other broad-based increases.
(7)
Market risk increased during the 12 months ended December 31, 2024, primarily due to model changes, model parameter updates and changes in exposures.
(8)
Operational risk decreased during the three months ended December 31, 2024, primarily driven by loss frequency decreases, and increased during the 12 months
ended December 31, 2024, mainly due to both loss frequency and loss severity increases.
43
Supplementary Leverage Ratio
The following table presents Citi’s Supplementary Leverage ratio and related components as of December 31, 2024, September 30,
2024 and December 31, 2023:
In millions of dollars, except ratios
December 31,
2024
September 30,
2024
December 31,
2023
Tier 1 Capital
$
174,527
$
175,788
$
172,504
Total Leverage Exposure
On-balance sheet assets(1)(2)
$
2,494,016
$
2,515,063
$
2,432,146
Certain off-balance sheet exposures(3)
Potential future exposure on derivative contracts
136,931
150,462
164,148
Effective notional of sold credit derivatives, net(4)
36,507
34,420
33,817
Counterparty credit risk for repo-style transactions(5)
23,391
22,072
22,510
Other off-balance sheet exposures
332,169
321,043
350,207
Total of certain off-balance sheet exposures
$
528,998
$
527,997
$
570,682
Less: Tier 1 Capital deductions
37,596
37,351
37,874
Total Leverage Exposure
$
2,985,418
$
3,005,709
$
2,964,954
Supplementary Leverage ratio
5.85 %
5.85 %
5.82 %
(1)
Represents the daily average of on-balance sheet assets for the quarter.
(2)
Citi’s regulatory capital ratios and components reflect certain deferrals based on the modified regulatory capital transition provision related to the CECL standard.
See “Capital Resources—Regulatory Capital Treatment—Modified Transition of the Current Expected Credit Losses Methodology” above.
(3)
Represents the average of certain off-balance sheet exposures calculated as of the last day of each month in the quarter.
(4)
Under the U.S. Basel III rules, banking organizations are required to include in Total Leverage Exposure the effective notional amount of sold credit derivatives,
with netting of exposures permitted if certain conditions are met.
(5)
Repo-style transactions include repurchase and reverse repurchase transactions as well as securities borrowing and securities lending transactions.
As presented in the table above, Citigroup’s
Supplementary Leverage ratio was 5.8% at December 31,
2024, September 30, 2024 and December 31, 2023. The ratios
remained largely unchanged as changes in Tier 1 Capital were
offset by changes in Total Leverage Exposure.
44
Capital Resources of Citigroup’s Subsidiary U.S. Depository
Institutions
Citigroup’s subsidiary U.S. depository institutions are also
subject to regulatory capital standards issued by their
respective primary bank regulatory agencies, which are similar
to the standards of the FRB.
The following tables present the capital components and
ratios for Citibank, Citi’s primary subsidiary U.S. depository
institution, as of December 31, 2024, September 30, 2024 and
December 31, 2023:
Advanced Approaches
Standardized Approach
In millions of dollars, except ratios
Required
Capital
Ratios(1)
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
September 30,
2024
December 31,
2023
CET1 Capital(2)
$ 153,483
$
153,533
$
147,109
$ 153,483
$
153,533
$
147,109
Tier 1 Capital(2)
155,613
155,665
149,238
155,613
155,665
149,238
Total Capital (Tier 1 Capital +
Tier 2 Capital)(2)(3)
165,581
167,687
160,706
173,060
175,165
168,571
Total Risk-Weighted Assets
1,109,387
1,101,907
1,057,194
998,817
993,917
983,960
Credit Risk(2)
$ 811,464
$
803,333
$
769,940
$ 953,377
$
949,115
$
937,319
Market Risk
45,383
44,710
46,540
45,440
44,802
46,641
Operational Risk
252,540
253,864
240,714
—
—
—
CET1 Capital ratio(4)(5)
7.0 %
13.83 %
13.93 %
13.92 %
15.37 %
15.45 %
14.95 %
Tier 1 Capital ratio(4)(5)
8.5
14.03
14.13
14.12
15.58
15.66
15.17
Total Capital ratio(4)(5)
10.5
14.93
15.22
15.20
17.33
17.62
17.13
In millions of dollars, except ratios
Required
Capital Ratios
December 31, 2024
September 30, 2024
December 31, 2023
Quarterly Adjusted Average Total Assets(2)(6)
$
1,726,312
$
1,721,363
$
1,666,609
Total Leverage Exposure(2)(7)
2,195,386
2,185,316
2,166,334
Leverage ratio(5)
5.0 %
9.01 %
9.04 %
8.95 %
Supplementary Leverage ratio(5)
6.0
7.09
7.12
6.89
(1)
Citibank’s required risk-based capital ratios are inclusive of the 2.5% Capital Conservation Buffer (all of which must be composed of CET1 Capital).
(2)
Citibank’s regulatory capital ratios and components reflect certain deferrals based on the modified regulatory capital transition provision related to the CECL
standard. See “Capital Resources—Regulatory Capital Treatment—Modified Transition of the Current Expected Credit Losses Methodology” above.
(3)
Under the Standardized Approach, the allowance for credit losses is eligible for inclusion in Tier 2 Capital up to 1.25% of credit risk-weighted assets, with any
excess allowance for credit losses being deducted in arriving at credit risk-weighted assets, which differs from the Advanced Approaches framework, in which
eligible credit reserves that exceed expected credit losses are eligible for inclusion in Tier 2 Capital to the extent that the excess reserves do not exceed 0.6% of
credit risk-weighted assets.
(4)
Citibank’s binding CET1 Capital, Tier 1 Capital and Total Capital ratios were derived under the Basel III Advanced Approaches framework for all periods
presented.
(5)
Citibank must maintain required CET1 Capital, Tier 1 Capital, Total Capital and Leverage ratios of 6.5%, 8.0%, 10.0% and 5.0%, respectively, to be considered
“well capitalized” under the revised Prompt Corrective Action (PCA) regulations applicable to insured depository institutions as established by the U.S. Basel III
rules. Citibank must also maintain a required Supplementary Leverage ratio of 6.0% to be considered “well capitalized.”
(6)
Leverage ratio denominator. Represents quarterly average total assets less amounts deducted from Tier 1 Capital.
(7)
Supplementary Leverage ratio denominator.
As presented in the table above, Citibank’s capital ratios
at December 31, 2024 were in excess of the regulatory capital
requirements under the U.S. Basel III rules. In addition,
Citibank was “well capitalized” as of December 31, 2024.
Citibank’s Supplementary Leverage ratio was 7.1% at
December 31, 2024 and September 30, 2024 compared to
6.9% at December 31, 2023. The increase in the ratio was
primarily driven by net income, partially offset by the payment
of common and preferred dividends and an increase in Total
Leverage Exposure.
45
Impact of Changes on Citigroup and Citibank Capital Ratios
The following tables present the hypothetical sensitivity of
Citigroup’s and Citibank’s capital ratios to changes of $100
million in CET1 Capital, Tier 1 Capital and Total Capital
(numerator), and changes of $1 billion in Advanced
Approaches and Standardized Approach RWA and quarterly
adjusted average total assets, as well as Total Leverage
Exposure (denominator), as of December 31, 2024. This
information is provided for the purpose of analyzing the
impact that a change in Citigroup’s or Citibank’s financial
position or results of operations could have on these ratios.
These sensitivities only consider a single change to either a
component of capital, RWA, quarterly adjusted average total
assets or Total Leverage Exposure. Accordingly, an event that
affects more than one factor may have a larger basis point
impact than is reflected in these tables.
CET1 Capital ratio
Tier 1 Capital ratio
Total Capital ratio
In basis points
Impact of
$100 million
change in
CET1 Capital
Impact of
$1 billion
change in
RWA
Impact of
$100 million
change in
Tier 1 Capital
Impact of
$1 billion
change in
RWA
Impact of
$100 million
change in
Total Capital
Impact of
$1 billion
change in
RWA
Citigroup
Advanced Approaches
0.8
0.9
0.8
1.1
0.8
1.2
Standardized Approach
0.9
1.2
0.9
1.3
0.9
1.6
Citibank
Advanced Approaches
0.9
1.2
0.9
1.3
0.9
1.3
Standardized Approach
1.0
1.5
1.0
1.6
1.0
1.7
Leverage ratio
Supplementary Leverage ratio
In basis points
Impact of
$100 million
change in
Tier 1 Capital
Impact of
$1 billion change in
quarterly adjusted
average total assets
Impact of
$100 million
change in
Tier 1 Capital
Impact of
$1 billion change
in Total Leverage
Exposure
Citigroup
0.4
0.3
0.3
0.2
Citibank
0.6
0.5
0.5
0.3
Citigroup Broker-Dealer Subsidiaries
At December 31, 2024, Citigroup Global Markets Inc., a U.S.
broker-dealer registered with the SEC that is an indirect
wholly owned subsidiary of Citigroup, had net capital,
computed in accordance with the SEC’s net capital rule, of
$18 billion, which exceeded the minimum requirement by $13
billion.
Moreover, Citigroup Global Markets Limited, a broker-
dealer registered with the United Kingdom’s Prudential
Regulation Authority (PRA) that is also an indirect wholly
owned subsidiary of Citigroup, had total regulatory capital of
$26 billion at December 31, 2024, which exceeded the PRA’s
minimum regulatory capital requirements.
In addition, certain of Citi’s other broker-dealer
subsidiaries are subject to regulation in the countries in which
they do business, including requirements to maintain specified
levels of net capital or its equivalent. Citigroup’s other
principal broker-dealer subsidiaries were in compliance with
their regulatory capital requirements at December 31, 2024.
46
Total Loss-Absorbing Capacity (TLAC)
U.S. GSIBs, including Citi, are required to maintain minimum
levels of TLAC and eligible long-term debt (LTD), each set by
reference to the GSIB’s consolidated risk-weighted assets
(RWA) and total leverage exposure.
Minimum External TLAC Requirement
The minimum external TLAC requirement is the greater of (i)
18% of the GSIB’s RWA plus the then-applicable RWA-based
TLAC buffer (see below) and (ii) 7.5% of the GSIB’s total
leverage exposure plus a leverage-based TLAC buffer of 2%
(i.e., 9.5%).
The RWA-based TLAC buffer equals the 2.5% Capital
Conservation Buffer, plus any applicable Countercyclical
Capital Buffer (currently 0%), plus the GSIB’s capital
surcharge as determined under method 1 of the GSIB
surcharge rule (2.0% for Citi for 2024). Accordingly, Citi’s
total current minimum TLAC requirement was 22.5% of
RWA for 2024.
Minimum Long-Term Debt (LTD) Requirement
The minimum LTD requirement is the greater of (i) 6% of the
GSIB’s RWA plus its capital surcharge as determined under
method 2 of the GSIB surcharge rule (3.5% for Citi for 2024),
for a total current requirement of 9.5% of RWA for Citi, and
(ii) 4.5% of the GSIB’s total leverage exposure.
The table below details Citi’s eligible external TLAC and
LTD amounts and ratios, and each TLAC and LTD regulatory
requirement, as well as the surplus amount in dollars in excess
of each requirement:
December 31, 2024
In billions of dollars, except ratios
External
TLAC
LTD
Total eligible amount
$
331
$
144
% of Advanced Approaches risk-
weighted assets
25.9 %
11.2 %
Regulatory requirement(1)(2)
22.5
9.5
Surplus amount
$
43
$
22
% of Total Leverage Exposure
11.1 %
4.8 %
Regulatory requirement
9.5
4.5
Surplus amount
$
47
$
9
(1)
External TLAC includes method 1 GSIB surcharge of 2.0%.
(2)
LTD includes method 2 GSIB surcharge of 3.5%.
As of December 31, 2024, Citi exceeded each of the
TLAC and LTD regulatory requirements, resulting in a $9
billion surplus above its binding TLAC requirement of LTD as
a percentage of Total Leverage Exposure.
For additional information on Citi’s TLAC-related
requirements, see “Liquidity Risk—Total Loss-Absorbing
Capacity (TLAC)” below.
Capital Resources (Full Adoption of CECL)
The following tables present Citigroup’s and Citibank’s capital components and ratios under a hypothetical scenario where the full
impact of CECL is reflected as of December 31, 2024(1):
Citigroup
Citibank
Required
Capital Ratios,
Advanced
Approaches
Required
Capital Ratios,
Standardized
Approach
Advanced
Approaches
Standardized
Approach
Required
Capital
Ratios(2)
Advanced
Approaches
Standardized
Approach
CET1 Capital ratio
10.5 %
12.1 %
12.06 %
13.55 %
7.0 %
13.77 %
15.30 %
Tier 1 Capital ratio
12.0
13.6
13.56
15.23
8.5
13.97
15.51
Total Capital ratio
14.0
15.6
15.35
17.98
10.5
14.86
17.26
Required
Capital Ratios
Citigroup
Required
Capital Ratios
Citibank
Leverage ratio
4.0 %
7.13 %
5.0 %
8.98 %
Supplementary Leverage ratio
5.0
5.81
6.0
7.06
(1)
The capital effects resulting from adoption of the CECL methodology were fully reflected in Citi’s regulatory capital as of January 1, 2025. See footnote 2 to the
“Components of Citigroup Capital” table above.
(2)
Citibank’s required capital ratios were the same under the Standardized Approach and the Advanced Approaches framework.
47
Regulatory Capital Standards and Developments
Basel III Revisions
On July 27, 2023, the U.S. banking agencies issued a notice of
proposed rulemaking, known as the Basel III Endgame
(capital proposal), that would amend U.S. regulatory capital
requirements. Citi continues to monitor developments related
to this rulemaking, including as a result of new leadership at
the U.S. banking agencies.
The capital proposal would maintain the current capital
rule’s dual-requirement structure for RWA, but would
eliminate the use of internal models to calculate credit risk and
operational risk components of RWA. The capital proposal
would also replace the current market risk framework with a
new standardized methodology and a new models-based
methodology for calculating RWA for market risk. Large
banking organizations, such as Citi, would be required to
calculate their risk-based capital ratios under both the new
expanded risk-based approach and the Standardized Approach
and use the lower of the two for each risk-based capital ratio
for determining the binding constraints.
The expanded risk-based approach is designed to align
with the international capital standards adopted by the Basel
Committee on Banking Supervision (Basel Committee). The
Basel Committee finalized the Basel III reforms in December
2017, which included revisions to the methodologies to
determine credit, market and operational RWA amounts.
If adopted as proposed, the capital proposal’s impact on
RWA amounts would also affect several other requirements
including TLAC, external long-term debt and the short-term
wholesale funding score included in the GSIB surcharge under
method 2 (see “GSIB Surcharge” below). The proposal has a
three-year transition period that would begin July 1, 2025. If
finalized as proposed, the capital proposal would materially
increase Citi’s required regulatory capital.
For information about risks related to changes in
regulatory capital requirements, see “Risk Factors—Strategic
Risks,” “—Operational Risks” and “—Compliance Risks”
below.
GSIB Surcharge
Separately on July 27, 2023, the FRB proposed changes to the
GSIB surcharge rule that aim to make it more risk sensitive.
Proposed changes include measuring certain systemic
indicators on a daily versus quarterly average basis, changing
certain of the risk indicators and shortening the time to come
into compliance with each year’s surcharge. In addition, the
proposal would narrow surcharge bands under method 2 from
50 bps to 10 bps to reduce cliff effects when moving between
bands.
Long-Term Debt Requirements
On August 29, 2023, the FRB issued a notice of proposed
rulemaking to amend the TLAC rule to change the haircuts
(i.e., the percentage reductions) that are applied to eligible
long-term debt. Under the proposed rule, only 50% of eligible
long-term debt with a maturity of one year or more but less
than two years would count toward the TLAC requirement,
instead of the current 100%. These proposed revisions are
estimated to decrease the TLAC percentage of Advanced
Approaches RWA as well as the TLAC percentage of Total
Leverage Exposure. The proposed rule in its current form has
no proposed transition period for its implementation and is not
expected to be material to Citi.
48
Tangible Common Equity, Book Value Per Share,
Tangible Book Value Per Share and Return on Equity
As defined by Citi, tangible common equity (TCE) represents
common stockholders’ equity less goodwill and identifiable
intangible assets (other than mortgage servicing rights
(MSRs)). Return on tangible common equity (RoTCE)
represents annualized net income available to common
shareholders as a percentage of average TCE. Tangible book
value per share (TBVPS) represents average TCE divided by
average common shares outstanding. Other companies may
calculate these measures differently.
At December 31,
In millions of dollars or shares, except per share amounts
2024
2023
2022
2021
2020
Total Citigroup stockholders’ equity
$
208,598
$
205,453
$
201,189
$
201,972
$
199,442
Less: Preferred stock
17,850
17,600
18,995
18,995
19,480
Common stockholders’ equity
$
190,748
$
187,853
$
182,194
$
182,977
$
179,962
Less:
Goodwill
19,300
20,098
19,691
21,299
22,162
Identifiable intangible assets (other than MSRs)
3,734
3,730
3,763
4,091
4,411
Goodwill and identifiable intangible assets (other than
MSRs) related to businesses held-for-sale (HFS)
16
—
589
510
—
Tangible common equity (TCE)
$
167,698
$
164,025
$
158,151
$
157,077
$
153,389
Common shares outstanding (CSO)
1,877.1
1,903.1
1,937.0
1,984.4
2,082.1
Book value per share (common stockholders’ equity/
CSO)
$
101.62
$
98.71
$
94.06
$
92.21
$
86.43
Tangible book value per share (TCE/CSO)
89.34
86.19
81.65
79.16
73.67
For the year ended December 31,
In millions of dollars
2024
2023
2022
2021
2020
Net income available to common shareholders
$
11,628
$
8,030
$
13,813
$
20,912
$
9,952
Average common stockholders’ equity
$
190,070
$
187,730
$
180,093
$
182,421
$
175,508
Less:
Average goodwill
19,732
20,313
19,354
21,771
21,315
Average intangible assets (other than MSRs)
3,611
3,835
3,924
4,244
4,301
Average goodwill and identifiable intangible assets
(other than MSRs) related to businesses HFS
6
226
872
153
—
Average TCE
$
166,721
$
163,356
$
155,943
$
156,253
$
149,892
Return on average common stockholders’ equity
6.1 %
4.3 %
7.7 %
11.5 %
5.7 %
RoTCE
7.0
4.9
8.9
13.4
6.6
49
RISK FACTORS
The following discussion presents what management currently
believes could be the material risks and uncertainties that
could impact Citi’s businesses, results of operations and
financial condition. Other risks and uncertainties, including
those not currently known to Citi or its management, could
also negatively impact Citi’s businesses, results of operations
and financial condition. Thus, the following should not be
considered a complete discussion of all of the risks and
uncertainties that Citi may face. For additional information
about risks and uncertainties that could impact Citi, see
“Executive Summary,” “Citi’s Multiyear Transformation” and
each respective business’s results of operations above and
“Managing Global Risk” below. The following risk factors are
categorized to improve the readability and usefulness of the
risk factor disclosure, and, while the headings and risk factors
generally align with Citi’s risk categorization, in certain
instances the risk factors may not directly correspond with
how Citi categorizes or manages its risks.
MARKET-RELATED RISKS
Macroeconomic, Geopolitical and Other Challenges and
Uncertainties Could Continue to Have a Negative Impact on
Citi.
Citi has experienced, and could experience in the future,
negative impacts to its businesses, results of operations and
financial condition as a result of various macroeconomic,
geopolitical and other challenges, uncertainties and volatility.
These include, among other things, any resurgence in
inflation; government fiscal and monetary actions or expected
actions, including changes in interest rate policy, reductions in
central bank balance sheets or other monetary policies; and
increases in unemployment rates, recessions or weak or
slowing economic growth in the U.S., Europe and other
regions or countries. These impacts could adversely affect
Citi’s consumer and institutional clients, businesses, cost of
credit and overall results of operations.
For example, inflation could resurge if the FRB were to
reduce interest rates prematurely and/or at too accelerated a
pace, or if certain policies were further pursued in the U.S.,
including those related to trade, tariffs and immigration.
Interest rates on loans Citi makes are typically based off
or set at a spread over a benchmark interest rate and would
likely decline or rise as benchmark rates decline or rise,
respectively. A decline in interest rates would generally be
expected to result in lower overall net interest income for Citi,
although Corporate Treasury has various tools to manage
Citi’s total interest rate risk position (see “Managing Global
Risk— Market Risk—Market Risk of Non-Trading
Portfolios” below). In addition, Citi’s net interest income
could be adversely affected due to a flattening (a lower spread
between shorter-term versus longer-term interest rates) or
inversion (shorter-term interest rates exceeding longer-term
interest rates) of the interest rate yield curve, as Citi typically
pays interest on deposits based on shorter-term interest rates
and earns money on loans based on longer-term interest rates.
For additional information on Citi’s interest rate risk, see
“Managing Global Risk—Market Risk—Banking Book
Interest Rate Risk” below.
Additional areas of uncertainty include, among others,
geopolitical challenges, tensions and conflicts, including those
related to the Russia–Ukraine war (see below) and conflicts in
the Middle East; potential policies and priorities resulting from
the new U.S. administration; economic and geopolitical
challenges related to China, including weak economic growth,
related policy actions, challenges in the Chinese real estate
sector, banking and credit markets, trade restrictions, and
tensions or conflicts between China and Taiwan and/or China
and the U.S.; high and rising government debt levels in the
U.S. and other countries; significant volatility and disruptions
in financial markets, including foreign currency volatility and
devaluations; natural disasters; and pandemics.
For example, the Russia–Ukraine war could have further
negative impacts on regional and global energy and other
commodities and financial markets and macroeconomic
conditions, adversely impacting jurisdictions where Citi
operates and its customers, clients or employees. In addition,
Citi’s remaining operations in Russia subject Citi to various
other risks, including foreign currency volatility, such as
appreciations or devaluations; restrictions arising from
retaliatory Russian laws and regulations on the conduct of
Citi’s remaining businesses, including, without limitation, its
provision of certain securities services to customers; sanctions
or asset freezes; and other deconsolidation events. For
additional information about these Russia-related risks, see the
operational processes and systems, cybersecurity and
emerging markets risk factors and “Managing Global Risk—
Other Risks—Country Risk—Russia” below.
STRATEGIC RISKS
Citi’s Ability to Return Capital to Common Shareholders
Substantially Depends on Regulatory Capital Requirements,
Including the Results of the CCAR Process and Dodd-Frank
Act Regulatory Stress Tests, and Other Factors.
Citi’s ability to return capital to its common shareholders
consistent with its capital planning efforts and targets, whether
through its common stock dividend or through share
repurchases, substantially depends, among other things, on its
regulatory capital requirements, including the annual
recalibration of the Stress Capital Buffer (SCB), which is
based upon the results of the CCAR process required by the
FRB, and recalibration of the GSIB surcharge, as well as the
supervisory expectations and assessments regarding individual
institutions.
The FRB’s annual stress testing requirements are
integrated into ongoing regulatory capital requirements. Citi’s
SCB equals the maximum projected decline in its CET1
Capital ratio under the supervisory severely adverse scenario
over a nine-quarter CCAR measurement period, plus four
quarters of planned common stock dividends as a percentage
of Citi’s risk-weighted assets, subject to a minimum
requirement of 2.5%. The SCB is calculated by the FRB using
its proprietary data and modeling of each firm’s results.
Accordingly, Citi’s SCB may go up, based on the supervisory
stress test results, thus potentially resulting in an increase in
Citi’s required regulatory CET1 Capital ratio under the
50
Standardized Approach. In addition, a breach of the SCB and
other regulatory capital buffers may result in gradual
limitations on capital distributions and discretionary bonus
payments to executive officers. For additional information on
the SCB, see “Capital Resources—Regulatory Capital
Buffers” above.
Moreover, changes in regulatory capital rules,
requirements or interpretations could materially increase Citi’s
required regulatory capital. For example, the U.S. banking
regulators proposed a number of changes to the U.S.
regulatory capital framework, including, but not limited to,
significant revisions to the U.S. Basel III rules. These potential
changes, if adopted as originally proposed, would likely
impact Citi’s regulatory capital position and materially
increase Citi’s regulatory capital requirements, and thus
adversely impact the extent to which Citi is able to return
capital to shareholders (see “Capital Resources—Regulatory
Capital Standards and Developments” above).
Citi’s ability to return capital also depends on its results of
operations and financial condition, including the capital
impact related to its remaining divestitures, such as, among
other things, any temporary capital impact from CTA losses,
net of hedges (see the incorrect assumptions or estimates and
the emerging markets risk factors below); Citi’s effectiveness
in planning, managing and calculating its level of regulatory
capital and risk-weighted assets under both the Advanced
Approaches and the Standardized Approach, as well as the
Supplementary Leverage ratio (SLR); its implementation and
maintenance of an effective capital planning process and
management framework; forecasts of macroeconomic
conditions; and deferred tax asset (DTA) utilization (see the
ability to utilize DTA risk factor below).
All firms subject to CCAR requirements, including Citi,
will continue to be subject to a rigorous regulatory evaluation
of capital planning practices and other reviews and
examinations, including, but not limited to data quality, which
is a key regulatory focus, governance, risk management and
internal controls. For example, the FRB has stated that it
expects capital adequacy practices to continue to evolve and to
likely be determined by its yearly cross-firm review of capital
plan submissions. Similarly, the FRB has indicated that, as
part of its stated goal to continually evolve its annual stress
testing requirements, several parameters of the annual stress
testing process may continue to be altered, including the
number and severity of the stress test scenarios, the FRB
modeling of Citi’s balance sheet, pre-provision net revenue
and stress losses, and the addition of components deemed
important by the FRB. Additionally, Citi’s ability to return
capital may be adversely impacted if a regulatory evaluation
or examination were to result in negative findings regarding
absolute capital levels or other aspects of Citi’s or any of its
subsidiaries’ operations, including as a result of the imposition
of additional capital buffers, limitations on capital
distributions or otherwise. For information on limitations on
Citi’s ability to return capital to common shareholders, as well
as the CCAR process, supervisory stress test requirements and
GSIB surcharge, see “Capital Resources—Overview” and
“Capital Resources—Stress Testing Component of Capital
Planning” above and the risk management and legal and
regulatory proceedings risk factors below.
In October 2024, the FRB announced that it will maintain
its current framework for calculating allowances on loans in
the supervisory stress test through the 2025 stress test cycle,
while continuing to evaluate appropriate future enhancements
to this framework. The impacts on Citi’s capital adequacy of
any potential incorporation by the FRB of CECL into its
supervisory stress tests in future stress test cycles, and of other
potential regulatory changes in the FRB’s stress testing
methodologies, remain unclear. For additional information
regarding the CECL methodology, including the transition
provisions related to the adverse regulatory capital effects
resulting from adoption of the CECL methodology, see
“Capital Resources—Current Regulatory Capital Standards—
Regulatory Capital Treatment—Modified Transition of the
Current Expected Credit Losses Methodology” above and
Note 1.
Although various uncertainties exist regarding the extent
of, and the ultimate impact to Citi from, changes to regulatory
capital, results from the FRB’s stress testing and CCAR
regimes, and regulatory evaluation or examination findings,
these changes could increase the level of capital Citi is
required or elects to hold, including as part of Citi’s
management buffer, thus potentially adversely impacting the
extent to which Citi is able to return capital to shareholders.
Citi Must Continually Review, Analyze and Successfully
Adapt to Ongoing Regulatory and Legislative Uncertainties
and Changes in the U.S. and Globally.
Citi, its management and its businesses continue to face
regulatory and legislative uncertainties and changes, both in
the U.S. and globally. While the ongoing regulatory and
legislative uncertainties and changes facing Citi are too
numerous to list completely, examples include, but are not
limited to (i) potential changes to various aspects of the U.S.
regulatory capital framework and requirements applicable to
Citi, including, among others, significant revisions to the U.S.
Basel III rules (see the capital return risk factor and “Capital
Resources—Regulatory Capital Standards and Developments”
above) and (ii) potential fiscal, monetary, tax, sanctions,
human capital and other changes promulgated by the U.S.
federal government and other governments (see the
macroeconomic and geopolitical risk factor above and the
ability to utilize DTAs risk factor below). References to
“regulatory” refer to both formal regulation and the views and
expectations of Citi’s regulators in their supervisory and
enforcement roles, which, as they change over time, can have
a major impact. In particular, U.S. regulators have indicated
that the level of their expectations is increasing and prompt
negative examination findings/ratings and enforcements
actions are more likely.
Additionally, U.S. and international regulatory and
legislative initiatives have not always been undertaken or
implemented on a coordinated basis, and areas of divergence
have developed and continue to develop with respect to their
scope, interpretation, timing, structure or approach, leading to
inconsistent or even conflicting requirements, including within
a single jurisdiction.
Further, ongoing regulatory and legislative uncertainties
and changes make Citi’s long-term business, balance sheet and
strategic budget planning difficult, subject to change and
51
potentially more costly and may impact its results of
operations. U.S. and other regulators globally have
implemented and continue to discuss various changes to
certain regulatory requirements, which would require ongoing
assessment by management as to the impact to Citi, its
businesses and business planning. Business planning must
necessarily be based on possible or proposed rules or
outcomes, which can change significantly upon finalization, or
upon implementation or interpretive guidance from numerous
regulatory bodies worldwide, and such guidance can change.
Regulatory and legislative changes have also significantly
increased Citi’s compliance risks and costs (see the
implementation and interpretation of regulatory changes risk
factor below) and can adversely affect Citi’s competitive
position, as well as its businesses, revenues, results of
operations and financial condition.
Citi’s Ability to Achieve Its Objectives from Its
Transformation, Simplification and Other Priorities May
Not Be as Successful as It Projects or Expects.
As part of its multiyear transformation, Citi continues to make
significant investments and undertake substantial actions
across the Company to improve its risk and controls
environment, modernize its data and technology infrastructure
and further enhance safety and soundness (see “Executive
Summary” and “Citi’s Multiyear Transformation” above and
the legal and regulatory proceedings risk factor below).
Citi has also been pursuing overall simplification
initiatives that have included management and operating
model changes and actions to enhance focus on clients and
reduce expenses. Citi’s simplification actions also include
completing its remaining divestitures, including the planned
IPO of Mexico Consumer/SBMM. These simplification
initiatives involve various execution challenges, may take
longer than expected and may result in higher than expected
expenses, CTA and other losses or other negative financial or
strategic impacts, which could be material, and litigation and
regulatory scrutiny (for information about potential CTA
impacts, see the capital return risk factor above and the
incorrect assumptions or estimates and emerging markets risk
factors below).
Additionally, Citi continues to make business-led
investments, as part of the execution of its strategic priorities.
For example, Citi has been making investments across the
Company, including hiring front office employees in key
strategic markets and businesses; enhancing product
capabilities and platforms to grow key businesses, improve
client digital experiences and add scalability; and
implementing new capabilities and partnerships. These
business-led investments are designed to reduce expenses and
grow revenues as well as result in retention and efficiency
improvements.
Citi’s transformation, as well as its simplification and
business investment initiatives, involve significant
complexities and uncertainties. In addition, there is inherent
risk that these initiatives will not be as productive or effective
as Citi expects, or at all. Conversely, failure to adequately
invest in and upgrade Citi’s technology and processes or
properly implement its enterprise-wide simplification could
result in Citi’s inability to meet regulatory expectations, be
sufficiently competitive, serve clients effectively and avoid
disruptions to its businesses and operational errors (see the
operational processes and systems and legal and regulatory
proceedings risk factors below).
Citi’s ability to achieve its expected returns, including
expense savings and revenue growth objectives, and
operational improvements from these priorities depends, in
part, on factors that it cannot control, including, among others,
macroeconomic challenges and uncertainties; customer, client
and competitor actions; and ongoing regulatory requirements
or changes.
Moreover, Citi’s transformation, simplification and other
priorities may continue to evolve as its business strategies, the
market environment and regulatory expectations change,
which could make the initiatives more costly and more
challenging to implement, and limit their effectiveness.
Climate Change Presents Various Financial and Non-
Financial Risks to Citi and Its Customers and Clients.
Climate change presents both immediate and long-term risks
to Citi and its customers and clients, with the risks expected to
increase over time. Climate risks can arise from both physical
risks (those risks related to the physical effects of climate
change) and transition risks (risks related to regulatory,
market, technological, stakeholder and legal changes from a
transition to a low-carbon economy). Physical and transition
risks can manifest themselves differently across Citi’s risk
categories in the short, medium and long terms.
Physical risks from climate change include acute risks,
such as wildfires, hurricanes, floods and droughts, as well as
consequences of chronic changes in climate, such as rising sea
levels, prolonged droughts and systemic changes to
geographies and any resulting population migration. For
example, physical risks could have adverse financial,
operational and other impacts on Citi, both directly on its
business and operations, and indirectly as a result of impacts
to Citi’s clients, customers, vendors and other counterparties.
These impacts can include destruction, damage or impairment
of owned or leased properties and other assets, destruction or
deterioration of the value of collateral, such as real estate,
disruptions to business operations and supply chains, and
reduced availability or increase in the cost of insurance.
Physical risks can also impact Citi’s credit risk exposures, for
example, in its mortgage and commercial real estate lending
businesses.
Transition risks may arise from changes in regulations or
market preferences toward low-carbon industries or sectors,
which in turn could have negative impacts on asset values,
results of operations or the reputations of Citi and its
customers and clients. For example, Citi’s corporate credit
exposures include oil and gas, power and other industries that
may experience reduced demand for carbon-intensive products
due to the transition to a low-carbon economy. Failure to
adequately consider transition risk in developing and
executing on its business strategy could lead to a loss of
market share, lower revenues and higher credit costs.
Transition risks also include potential increased operational,
compliance and energy costs driven by government policies to
promote decarbonization.
52
Moreover, increasing legislative and regulatory changes
and uncertainties regarding climate-related risk management
and disclosures may result in increased regulatory,
compliance, credit, reputational and other risks and costs for
Citi. In addition, Citi could face increased regulatory scrutiny
and reputation and litigation risks as a result of its climate risk,
sustainability and other environmental and social
commitments, disclosures, marketing and positioning. For
example, any actual or perceived overstatement of the
environmental benefits of Citi’s actions may result in legal or
regulatory actions and/or reputational harm.
Even as some regulators seek to mandate additional
disclosure of climate-related information, Citi’s ability to
comply with such requirements and conduct more robust
climate-related risk analyses may be hampered by lack of
information and reliable data. Data on climate-related risks is
limited in availability, often based on estimated or unverified
figures, collected and reported on a time-lag, and variable in
quality. Modeling capabilities to analyze climate-related risks
and interconnections continue to evolve.
Additionally, if Citi is unable to achieve its objectives or
commitments relating to climate change, its businesses,
reputation, attractiveness to certain investors and efforts to
recruit and retain employees may suffer. For example, Citi’s
approach to supporting client decarbonization in a gradual and
orderly way, while promoting energy security, may lead to
both continued exposure to carbon-intensive activity and
increased reputation risks from stakeholders with divergent
points of view. Citi may also face challenges and scrutiny
from stakeholders with varied views on climate change that
may impact its ability to conduct certain business.
For information on Citi’s climate and other sustainability
initiatives, see “Net Zero and Sustainability” below. For
additional information on Citi’s management of climate risk,
see “Managing Global Risk—Strategic Risk—Climate Risk”
below.
Citi’s Ability to Utilize Its DTAs, and Thus Reduce the
Negative Impact of the DTAs on Citi’s Regulatory Capital,
Will Be Driven by Its Ability to Generate U.S. Taxable
Income.
At December 31, 2024, Citi’s net DTAs were $29.8 billion,
net of a valuation allowance of $4.3 billion, of which $12.8
billion was deducted from Citi’s CET1 Capital under the U.S.
Basel III rules. Of this deducted amount, $11.6 billion related
to net operating losses, foreign tax credit and general business
credit carry-forwards, with $3.0 billion related to temporary
differences in excess of the 10%/15% regulatory limitations,
reduced by $1.8 billion of deferred tax liabilities, primarily
associated with goodwill and certain other intangible assets
that were separately deducted from capital.
Citi’s overall ability to realize its DTAs will primarily be
dependent upon Citi’s ability to generate U.S. taxable income
in the relevant reversal periods. Failure to realize any portion
of the net DTAs would have a corresponding negative impact
on Citi’s net income and financial returns.
The accounting treatment for realization of DTAs is
complex and requires significant judgment and estimates
regarding future taxable earnings in the jurisdictions in which
the DTAs arise and available tax planning strategies. Forecasts
of future taxable earnings will depend upon various factors,
including, among others, macroeconomic conditions. In
addition, any future increase in U.S. corporate tax rates could
result in an increase in Citi’s DTAs, which may subject more
of Citi’s DTAs to exclusion from regulatory capital.
Citi has not been and does not expect to be subject to the
base erosion anti-abuse tax (BEAT), which, if applicable to
Citi in any given year, would have a significantly adverse
effect on both Citi’s net income and regulatory capital.
The new U.S. administration has discussed potential
reductions to the U.S. federal corporate tax rate and changes to
the U.S. approach to the Organization for Economic
Cooperation and Development (OECD) Pillar 2 framework. It
is unclear whether any corporate tax rate reduction would
apply to services companies like Citi. If the U.S. federal
corporate tax rate applicable to Citi is reduced, Citi may
benefit on a prospective net income basis, but the reduction
could result in a material decrease in the value of Citi’s DTAs,
which would also result in a material reduction to Citi’s net
income during the period in which the change is enacted.
Citi’s regulatory capital could also be reduced if the decrease
in the value of Citi’s DTAs exceeds certain levels.
For additional information on Citi’s DTAs, including
FTCs, see “Significant Accounting Policies and Significant
Estimates—Income Taxes” below and Notes 1 and 10.
Citi’s Interpretation or Application of the Complex Tax
Laws to Which It Is Subject Could Differ from Those of
Governmental Authorities, Which Could Result in Litigation
or Examinations and the Payment of Additional Taxes,
Penalties or Interest.
Citi is subject to various income-based tax laws of the U.S.
and its states and municipalities, as well as the numerous non-
U.S. jurisdictions in which it operates. These tax laws are
inherently complex, and Citi must make judgments and
interpretations about the application of these laws to its
entities, operations and businesses.
For example, the OECD Pillar 2 framework contemplates
a 15% global minimum tax with respect to earnings in each
country. The majority of EU member states have adopted the
OECD Pillar 2 rules, and other non-U.S. countries have
similarly adopted or are expected to adopt the rules. Under
these rules, Citi will be required to pay a “top-up” tax to the
extent that Citi’s effective tax rate in any given country is
below 15%. Beginning in 2024, countries that adopted the
OECD Pillar 2 rules can collect the top-up tax only with
respect to earnings of entities in their jurisdiction or
subsidiaries of such entities. Beginning in 2025, all countries
that have adopted the OECD Pillar 2 rules can collect a share
of the top-up tax owed with respect to any member of the
Pillar 2 multinational group. While Citi does not currently
expect the rules to have a material impact on its earnings,
many aspects of the application of the rules and their
implementation remain uncertain. Separately, the new U.S.
administration has stated its opposition to the application of
the global minimum tax to U.S. companies’ U.S. operations,
and has indicated it may take retaliatory measures against
other countries that seek to collect the minimum tax with
respect to the U.S. operations of U.S. companies. Citi is
53
closely monitoring developments relating to the Pillar 2
negotiations to determine their potential impact.
Additionally, Citi is subject to litigation or examinations
with U.S. and non-U.S. tax authorities regarding non-income-
based tax matters. While Citi has appropriately reserved for
such matters where there is a probable loss, and has disclosed
reasonably possible losses, the outcome of the matters may be
different than Citi’s expectations. Citi’s interpretations or
application of the tax laws, including with respect to
withholding, stamp, service and other non-income taxes, could
differ from that of the relevant governmental taxing authority,
which could result in the requirement to pay additional taxes,
penalties or interest, the reduction of certain tax benefits or the
requirement to make adjustments to amounts recorded, which
could be material. See Note 30 for additional information on
litigation and examinations involving non-U.S. tax authorities.
A Deterioration in or Failure to Maintain Citi’s Co-
Branding or Private Label Credit Card Relationships Could
Have a Negative Impact on Citi.
Citi has co-branding and private label relationships with
various retailers and merchants through its Branded Cards and
Retail Services credit card businesses in USPB, whereby in the
ordinary course of business Citi issues credit cards to
consumers, including customers of the retailers or merchants.
The five largest relationships across both businesses in USPB
constituted an aggregate of approximately 12% of Citi’s
revenues in 2024 (see “U.S. Personal Banking” above). Citi’s
co-branding and private label agreements often provide for
shared economics between the parties and generally have a
fixed term.
Competition among credit card issuers, including Citi, for
these relationships is significant, and Citi may not be able to
maintain such relationships on existing terms or at all. Citi’s
co-branding and private label relationships could also be
negatively impacted by, among other things, the general
economic environment, including the impacts stemming from
potential increases in unemployment, inflation or interest rates
or lower economic growth rates, as well as a risk of recession;
changes in consumer sentiment, spending patterns and credit
card usage behaviors; a decline in sales and revenues, partner
store closures, any reduction in air and business travel, or
other operational difficulties of the retailer or merchant;
changes in partner business strategies, including changes in
products and services offered; termination or non-renewal of
partner agreements, including early termination due to a
contractual breach or exercise of other early termination right;
or other factors, including bankruptcies, liquidations,
restructurings, consolidations or other similar events, whether
due to a challenging macroeconomic environment or
otherwise.
These events, particularly early termination and
bankruptcies or liquidations, could negatively impact the
results of operations or financial condition of Branded Cards,
Retail Services or Citi as a whole, including as a result of loss
of revenues, increased expenses, higher cost of credit,
impairment of purchased credit card relationships and
contract-related intangibles or other losses (see Note 17 for
information on Citi’s credit card related intangibles generally).
The Application of U.S. Resolution Plan Requirements May
Pose a Greater Risk of Loss to Citi’s Debt and Equity
Securities Holders, and Citi’s Inability in Its Resolution Plan
Submissions to Address Any Shortcomings or Deficiencies or
Guidance Could Subject Citi to More Stringent Capital,
Leverage or Liquidity Requirements, or Restrictions on Its
Growth, Activities or Operations, and Could Eventually
Require Citi to Divest Assets or Operations.
Title I of the Dodd-Frank Act requires Citi to prepare and
submit a plan to the FRB and the FDIC for the orderly
resolution of Citigroup (the bank holding company) and its
significant legal entities under the U.S. Bankruptcy Code in
the event of future material financial distress or failure.
Under Citi’s preferred “single point of entry” resolution
plan strategy, only Citigroup, the parent holding company,
would enter into bankruptcy, while Citigroup’s material legal
entities (as defined in the public section of its 2023 resolution
plan, which can be found on the FRB’s and FDIC’s websites)
would remain operational outside of any resolution or
insolvency proceedings. As a result, Citigroup’s losses and
any losses incurred by its material legal entity subsidiaries
would be imposed first on holders of Citigroup’s equity
securities and thereafter on its unsecured creditors, including
holders of eligible long-term debt and other debt securities.
In addition, a wholly owned, direct subsidiary of
Citigroup serves as a resolution funding vehicle (the
intermediate holding company, or IHC) to which Citigroup
has transferred, and has agreed to transfer on an ongoing basis,
certain assets. The obligations of Citigroup and of the IHC,
respectively, under the amended and restated secured support
agreement, are secured on a senior basis by the assets of
Citigroup (other than shares in subsidiaries of the parent
company and certain other assets), and the assets of the IHC,
as applicable. As a result, claims of the operating material
legal entities against the assets of Citigroup with respect to
such secured assets are effectively senior to unsecured
obligations of Citigroup. Citi’s single point of entry resolution
plan strategy and the obligations under the amended and
restated secured support agreement may result in the
recapitalization of and/or provision of liquidity to Citi’s
operating material legal entities, and the commencement of
bankruptcy proceedings by Citigroup at an earlier stage of
financial stress than might otherwise occur without such
mechanisms in place.
In line with the FRB’s total loss-absorbing capacity
(TLAC) rule, Citigroup’s shareholders and unsecured creditors
—including its unsecured long-term debt holders—would bear
any losses resulting from Citigroup’s bankruptcy.
Accordingly, any value realized by holders of its unsecured
long-term debt may not be sufficient to repay the amounts
owed to such debt holders in the event of a bankruptcy or
other resolution proceeding of Citigroup. For additional
information on Citi’s single point of entry resolution plan
strategy and the IHC and secured support agreement, see
“Managing Global Risk—Liquidity Risk” below.
On November 22, 2022, the FRB and FDIC issued
feedback on the resolution plans filed on July 1, 2021 by the
eight U.S. GSIBs, including Citigroup. The FRB and FDIC
jointly identified one shortcoming in Citigroup’s 2021
resolution plan. The shortcoming related to data integrity and
54
data quality management issues, specifically, weaknesses in
Citi’s processes and practices for producing certain data that
could materially impact its resolution capabilities. On June 20,
2024, the FRB and FDIC issued feedback on the resolution
plans filed on July 1, 2023 by the eight U.S. GSIBs, including
Citigroup. The FRB and FDIC jointly identified one
shortcoming in Citigroup’s 2023 resolution plan regarding
Citi’s derivatives unwind capabilities. If a shortcoming is not
satisfactorily explained or addressed before, or in, the
submission of the next resolution plan, the shortcoming may
be found to be a deficiency in the next resolution plan (see
discussion below). Citi is required to submit a targeted
resolution plan by July 1, 2025. More generally, data
continues to be a subject of regulatory focus, and Citi
continues to work on enhancing its data availability and
quality (see “Citi’s Multiyear Transformation” above and the
legal and regulatory proceedings risk factor below).
Under Title I, if the FRB and the FDIC jointly determine
that Citi’s resolution plan is not “credible” (which, although
not defined, is generally understood to mean the regulators do
not believe the plan is feasible or would otherwise allow Citi
to be resolved in a way that protects systemically important
functions without severe systemic disruption), or would not
facilitate an orderly resolution of Citi under the U.S.
Bankruptcy Code, and Citi fails to resubmit a resolution plan
that remedies any identified deficiencies, Citi could be
subjected to more stringent capital, leverage or liquidity
requirements, or restrictions on its growth, activities or
operations. If within two years from the imposition of any
such requirements or restrictions Citi has still not remediated
any identified deficiencies, then Citi could eventually be
required to divest certain assets or operations. Any such
restrictions or actions would negatively impact Citi’s
reputation, market and investor perception, operations and
strategy.
Citi’s Performance and Its Ability to Effectively Execute Its
Transformation, Simplification and Other Priorities Could
Be Negatively Impacted if It Is Not Able to Hire and Retain
Qualified Employees.
Citi’s performance and the performance of its individual
businesses largely depend on the talents and efforts of its
diverse and highly qualified employees. Specifically, Citi’s
continued ability to compete in each of its lines of business, to
manage its businesses effectively and to execute its
transformation, simplification and other priorities, including,
for example, hiring employees to grow businesses or hiring
employees to support Citi’s priorities, depends on its ability to
hire new employees and to retain and motivate its existing
employees. If Citi is unable to continue to hire, retain and
motivate highly qualified employees, Citi’s performance,
including its competitive position, the execution of its
transformation, simplification and other priorities and its
results of operations could be negatively impacted.
Citi’s ability to attract, retain and motivate employees
depends on numerous factors, some of which are outside of
Citi’s control. For example, the competition for talent
continues to be particularly intense due to various factors, such
as changes in worker expectations, concerns and preferences,
including demands for remote work options and other job
flexibility. Also, the banking industry generally is subject to
more comprehensive regulation of employee compensation
than other industries, including deferral and clawback
requirements for incentive compensation, which can make it
unusually challenging for Citi to compete in labor markets
against businesses, including, for example, technology
companies, that are not subject to such regulation. In addition,
Citi recently completed a significant organizational
simplification initiative, which included reducing management
layers and significant reductions in functional roles that could
continue to impact its ability to attract and retain employees.
Other factors that could impact Citi’s ability to attract,
retain and motivate employees include, among other things,
Citi’s presence in a particular market or region, the
professional and development opportunities it offers, its
reputation and its diversity. For information on Citi’s
employee and workforce management, see “Human Capital
Resources and Management” below.
Citi Faces Increased Competitive Challenges, Including
from Financial Services and Other Companies and
Emerging Technologies.
Citi operates in an increasingly evolving and competitive
business environment, which includes both financial and non-
financial services firms, such as traditional banks, online
banks, private credit and financial technology companies and
others. These companies compete on the basis of, among other
factors, size, reach, quality and type of products and services
offered, price, technology and reputation. Certain competitors
may be subject to different and, in some cases, less stringent
legal, regulatory and supervisory requirements, whether due to
size, jurisdiction, entity type or other factors, placing Citi at a
competitive disadvantage. Moreover, new or rapidly
developing technologies with the potential to have significant
economic or social effects (emerging technologies) also pose
competitive challenges for Citi.
For example, Citi competes with other financial services
companies in the U.S. and globally that have grown rapidly
over the last several years or have introduced new products
and services. Potential mergers and acquisitions involving
traditional financial services companies, such as regional
banks or credit card issuers, as well as networks and merchant
acquirers, may also increase competition and impact Citi’s
ability to offer competitive pricing and rewards. Non-
traditional financial services firms, such as private credit,
financial technology and digital asset companies, are less
regulated and supervised and continue to expand their
offerings of services traditionally provided by financial
institutions.
In addition, emerging technologies have the potential to
intensify competition and accelerate disruption in the financial
services industry. Clients and investors have shown increased
interest in these technologies, prompting financial services
firms and other market participants to develop related products
and services. As blockchain and digital assets continue to
evolve, customer demand for enhanced offerings may
increase. Failure to strategically embrace the potential of
emerging technologies may result in a competitive
disadvantage to Citi. The new U.S. administration has stated
its support for the growth and use of digital assets and
55
blockchain technology, including a more favorable regulatory
approach to crypto assets. Citi may not be able to provide the
same or similar products and services for legal or regulatory
reasons, which may be exacerbated by rapidly evolving and
conflicting regulatory requirements, as well as increased
compliance and other risks. Further, the introduction of mobile
platforms and emerging technologies, such as artificial
intelligence (AI) and digital assets, and changes in the
payments space (e.g., instant and 24/7 payments) are
accelerating, and, as a result, certain of Citi’s products and
services could become less competitive.
Increased competition and emerging technologies have
required and could require Citi to change or adapt its products
and services, as well as invest in and develop related
infrastructure, to attract and retain customers or clients or to
compete more effectively with competitors, including new
market entrants.
Simultaneously, as Citi develops new products and
services leveraging emerging technologies, new risks may
emerge that, if not designed and governed adequately, may
result in control gaps and in Citi operating outside of its risk
appetite. For example, the use or development of emerging
technologies, such as AI or digital assets, without sufficient
controls, governance and risk management may result in
increased risks across various risk categories (for additional
information, see the operational processes and systems risk
factor below).
As another example, instant and 24/7 payments products
could be accompanied by challenges to forecasting and
managing liquidity, as well as increased operational and
compliance risks. Additionally, the growth of certain
competitors has increased market and counterparty credit
risks, with such risks particularly heightened in the case of a
challenging macroeconomic environment (see the risk factor
on credit and concentrations of risk below).
Moreover, Citi relies on third parties to support certain of
its product and service offerings, which may put Citi at a
disadvantage to competitors who may directly offer a broader
array of products and services. Also, Citi’s businesses, results
of operations and reputation may suffer if any third party is
unable to provide adequate support for such product and
service offerings, whether due to operational incidents or
otherwise (see the operational processes and systems,
cybersecurity and emerging markets risk factors below).
To the extent that Citi is not able to compete effectively
with other financial services companies, including private
credit and financial technology companies, and non-financial
services firms, or adequately assess the competitive landscape,
Citi could be placed at a competitive disadvantage, which
could result in loss of customers and market share, and its
businesses, results of operations and financial condition could
suffer. For additional information on Citi’s competitors, see
the co-brand and private label cards and qualified employees
risk factors above and “Supervision, Regulation and Other—
Competition” below.
OPERATIONAL RISKS
A Failure or Disruption of Citi’s Operational Processes or
Systems Could Negatively Impact Its Reputation, Customers,
Clients, Businesses or Results of Operations and Financial
Condition.
Citi’s global operations rely heavily on its technology systems
and infrastructure, including the accurate, complete, timely
and secure processing, management, storage and transmission
of data, including confidential transactions, and other
information, as well as the monitoring of a substantial amount
of data and complex transactions in real time. Citi obtains and
stores an extensive amount of personal and client-specific
information for its consumer and institutional customers and
clients, and must accurately record and reflect their account
transactions.
Citi’s operations must also comply with complex and
evolving laws, regulations and heightened regulatory
expectations in the jurisdictions in which it operates (see the
implementation and interpretation of regulatory changes and
legal proceedings risk factors below). With the proliferation of
emerging technologies, including AI, and the use of the
internet, mobile devices and cloud services to conduct
financial transactions, and customers’ and clients’ increasing
use of online banking and trading systems and other platforms,
large global financial institutions such as Citi have been, and
will continue to be, subject to an ever-increasing risk of
operational loss, failure or disruption.
Citi has been working with AI and machine learning for a
period of time and has more recently begun using Generative
AI, a type of artificial intelligence that uses generative models
to create text and other content. Generative AI tools are
available to employees within parts of the Company, and in
the future Citi may more broadly use, develop and incorporate
Generative AI within its technology platform and services,
systems and its businesses and functions. While Citi has
policies which govern the use of emerging technologies,
ineffective, inadequate or faulty Generative AI development or
deployment practices by Citi or third parties could result in
unintended consequences, such as AI algorithms that produce
inaccurate or incomplete output or output based on biased,
incomplete and/or inaccurate datasets, or cause other issues,
concerns or deficiencies. Moreover, the use of increasingly
sophisticated AI technologies by malicious actors and others
has increased the risk of fraud, including identity theft and
bypassing of verification controls, and failure to effectively
manage such risks could result in misappropriation of funds,
unauthorized transactions, exposure of sensitive client or
Company information, reputational harm and increased
litigation and regulatory risk. In addition, compliance with
new or changing laws, regulations or industry standards
relating to AI may impose additional operational risks and
costs.
Although Citi has continued to upgrade its technology,
including systems to automate processes and gain efficiencies,
operational incidents are unpredictable and can arise from
numerous sources, not all of which are fully within Citi’s
control. These include, among others, operational or execution
failures or deficiencies by third parties and third parties that
provide products or services to Citi (e.g., cloud service
56
providers), including such third parties’ downstream service
providers, other market participants or those that otherwise
have an ongoing partnership or business relationship with Citi;
deficiencies in processes or controls; inadequate management
of data governance practices, data controls and monitoring
mechanisms that may adversely impact internal or external
reporting and decision-making; cyber or information security
incidents (see the cybersecurity risk factor below); human
error, such as manual transaction processing errors (e.g.,
erroneous payments to lenders or manual errors by traders that
cause system and market disruptions or losses), which can be
exacerbated by staffing challenges and processing backlogs;
fraud or malice on the part of employees or third parties;
insufficient (or limited) straight-through processing between
legacy or bespoke systems and any failure to design and
effectively operate controls that mitigate operational risks
associated with those legacy or bespoke systems, leading to
potential risk of errors and operating losses; accidental system
or technological failure; electrical or telecommunication
outages; failures of or cyber incidents involving computer
servers or infrastructure, including software updates and cloud
services; or other similar losses or damage to Citi’s property or
assets (see also the climate change risk factor above).
Additionally, Citi’s ability to effectively maintain and upgrade
systems and infrastructure can become more challenging as
the speed, frequency, volume, interconnectivity and
complexity of transactions continue to increase.
For example, operational incidents can arise due to
failures by third parties with which Citi does business, such as
failures by internet, mobile technology and cloud service
providers or other vendors to adequately follow procedures or
processes, safeguard their systems or prevent system
disruptions or cyberattacks. Failure by Citi to develop,
implement and operate a third-party risk management program
commensurate with the level of risk, complexity and nature of
its third-party relationships can also result in operational
incidents. In addition, Citi has experienced and could
experience further losses associated with manual transaction
processing errors, including erroneous payments to lenders or
manual errors by Citi traders that cause system and market
disruptions and losses for Citi and its clients. Irrespective of
the sophistication of the technology utilized by Citi, there will
always be some room for human and other errors. In view of
the large transactions in which Citi engages, such errors have
in the past resulted, and could result, in significant losses.
While Citi has change management processes in place to
appropriately upgrade its operational processes and systems to
ensure that any changes introduced do not adversely impact
security and operational continuity, such change management
can fail or be ineffective. Furthermore, when Citi introduces
new products, systems or processes, new operational risks that
may arise from those changes may not be identified, or
adequate controls to mitigate the identified risks may not be
appropriately implemented or operate as designed.
Incidents that impact information security, technology
operations or other operational processes may cause
disruptions and/or malfunctions within Citi’s businesses (e.g.,
the temporary loss of availability of Citi’s online banking
system or mobile banking platform), as well as the operations
of its clients, customers or other third parties. In addition,
operational incidents could involve the failure or
ineffectiveness of internal processes or controls. Given Citi’s
global footprint and the high volume of transactions processed
by Citi, certain failures, errors or actions may be repeated or
compounded before they are discovered and rectified, which
would further increase the consequences and costs.
Operational incidents could result in financial losses and other
costs as well as misappropriation, corruption or loss of
confidential and other information or assets, which could
significantly negatively impact Citi’s reputation, customers,
clients, businesses or results of operations and financial
condition. Cyber-related and other operational incidents can
also result in legal and regulatory actions or proceedings, fines
and other costs (see the legal and regulatory proceedings risk
factor below).
Citi will need to continue to increase its operational
resilience, ensuring important business services and their
impact tolerance time and severity scales are clearly defined.
Failure to do so could expose Citi to service disruptions
identified through scenario testing, leading to harms to Citi
clients, market integrity, financial stability or Citi safety and
soundness.
For information on Citi’s management of operational risk,
see “Managing Global Risk—Operational Risk” below.
Citi’s and Third Parties’ Computer Systems and Networks
Will Continue to Be Susceptible to an Increasing Risk of
Continually Evolving, Sophisticated Cybersecurity Incidents
That Could Result in the Theft, Loss, Non-Availability,
Misuse or Disclosure of Confidential Client or Customer
Information, Damage to Citi’s Reputation, Additional Costs
to Citi, Regulatory Penalties, Legal Exposure and Financial
Losses.
Citi’s computer systems, software and networks are subject to
ongoing attempted cyberattacks, such as unauthorized access,
loss or destruction of data (including confidential client
information), account takeovers, disruptions of service,
phishing, malware, ransomware, computer viruses or other
malicious code and other similar events. These threats can
arise from external parties, including cyber criminals, cyber
terrorists, hacktivists (individuals or groups using cyberattacks
to promote a political or social agenda) and nation-state actors,
as well as insiders who knowingly or unknowingly engage in
or enable malicious cyber activities. For example, nation-state
actors have recently targeted critical U.S. infrastructure with
cyberattacks.
Citi develops its own software and relies on third-party
applications and software, which are susceptible to
vulnerability exploitations. Software leveraged in financial
services and other industries continues to be impacted by an
increasing number of zero-day vulnerabilities, thus increasing
inherent cyber risk to Citi.
The increasing use of mobile and other digital banking
platforms and services, cloud technologies, new and emerging
technologies (such as AI) and connectivity solutions to
facilitate remote working for Citi’s employees all increase
Citi’s exposure to cybersecurity risks. Citi is also susceptible
to cyberattacks given, among other things, its size and scale,
high-profile brand, global footprint and prominent role in the
financial system, as well as the ongoing wind-down of its
57
businesses in Russia (see the emerging markets risk factor and
“Managing Global Risk—Other Risks—Country Risk—
Russia” below). Additionally, Citi continues to operate in
multiple jurisdictions in the midst of geopolitical unrest or
uncertainties, including the Russia–Ukraine war and the
conflicts in the Middle East, which could expose Citi to
heightened risk of insider threat, cyber threats from nation-
state actors, hacktivism or other cyber incidents.
Citi continues to experience increased exposure to
cyberattacks through third parties, in part because financial
institutions are becoming increasingly interconnected with
central agents, exchanges and clearing houses. Third parties
with which Citi does business, as well as retailers and other
third parties with which Citi’s customers do business, and any
such third parties’ downstream service providers, also pose
cybersecurity risks, particularly where activities of customers
are beyond Citi’s security and control systems. For example,
Citi outsources certain functions, such as processing customer
credit card transactions, uploading content on customer-facing
websites and developing software for new products and
services. These relationships allow for the storage and
processing of customer information by third-party hosting of,
or access to, Citi websites. This could lead to compromise or
the potential to introduce vulnerable or malicious code,
resulting in security breaches or business disruptions
impacting Citi customers, employees or operations. While
many of Citi’s agreements with third parties include
indemnification provisions, Citi may not be able to recover
sufficiently under these provisions, or at all, to adequately
offset any losses and other adverse impacts Citi may incur
from third-party cyber incidents.
Citi and some of its third-party partners have been
subjected to attempted and sometimes successful cyberattacks
over the last several years, including (i) denial of service
attacks, which attempt to interrupt service to clients and
customers; (ii) hacking and malicious software installations
intended to gain unauthorized access to information systems or
to disrupt those systems and/or impact availability or privacy
of confidential data, with objectives including, but not limited
to, extortion payments or causing reputational damage; (iii)
data breaches due to unauthorized access to customer account
or other data; and (iv) malicious software attacks on client
systems, in attempts to gain unauthorized access to Citi
systems or client data under the guise of normal client
transactions.
While Citi’s monitoring and protection services have
historically generally succeeded in detecting, thwarting and/or
responding to attacks targeting its systems before they become
significant, certain past incidents resulted in limited losses, as
well as increases in expenditures to monitor against the threat
of similar future cyber incidents. There can be no assurance
that such cyber incidents will not occur again, and they could
occur more frequently, via novel tactics, including leveraging
of tools made possible by emerging technologies, and on a
more significant scale.
Despite the significant resources Citi allocates to
implement, maintain, monitor and regularly upgrade its
systems and networks with measures such as intrusion
detection and prevention systems and firewalls to safeguard
critical business applications, there is no guarantee that these
measures or any other measures can provide sufficient
security. Because the techniques used to initiate cyberattacks
change frequently or, in some cases, are not recognized until
launched or even later, Citi may be unable to implement
effective preventive measures or otherwise proactively address
these methods. In addition, cyber threats and cyberattack
techniques change, develop and evolve rapidly, including from
emerging technologies such as AI, cloud computing and
quantum computing. Given the frequency and sophistication
of cyberattacks, the determination of the severity and potential
impact of a cyber incident may not become apparent for a
substantial period of time following detection of the incident.
Also, while Citi strives to implement measures to reduce the
exposure resulting from outsourcing risks, such as performing
security control assessments of third-party vendors and
limiting third-party access to the least privileged level
necessary to perform job functions, these measures cannot
prevent all third-party-related cyberattacks or data breaches. In
addition, the risk of insider threats may continue to be elevated
in the near term due to Citi’s recent overall simplification
initiatives, including streamlining its global staff functions.
Cyber incidents can result in the disclosure of personal,
confidential or proprietary customer, client or employee
information; damage to Citi’s reputation with its clients, other
counterparties and the market; customer dissatisfaction; and
additional costs to Citi, including expenses such as repairing
or replacing systems, replacing customer payment cards, credit
monitoring or adding new personnel or protection
technologies. Cyber incidents can also result in regulatory
penalties, loss of revenues, deposit flight, exposure to
litigation and regulatory action and other financial losses,
including loss of funds to both Citi and its clients and
customers, and disruption to Citi’s operational systems (see
the operational processes and systems risk factor above).
Moreover, the increasing risk of cyber incidents has
resulted in increased legislative and regulatory action on
cybersecurity, including, among other things, scrutiny of
firms’ cybersecurity protection processes and services, laws
and regulations to enhance protection of consumers’ personal
data and mandated disclosure on cybersecurity matters.
While Citi maintains insurance coverage that may, subject
to policy terms and conditions including significant self-
insured deductibles, cover certain aspects of cyber risks, such
insurance coverage may be insufficient to cover all losses and
may not take into account reputational harm, the costs of
which are impossible to quantify.
For additional information about Citi’s management of
cybersecurity risk, see “Managing Global Risk—Operational
Risk—Cybersecurity Risk” below.
Changes or Errors in Accounting Assumptions, Judgments
or Estimates, or the Application of Certain Accounting
Principles, Could Result in Significant Losses or Other
Adverse Impacts.
U.S. GAAP requires Citi to use certain assumptions,
judgments and estimates in preparing its financial statements,
including, among other items, the estimate of the ACL;
reserves related to litigation, regulatory and tax matters;
valuation of DTAs; the fair values of certain assets and
liabilities; and the assessment of goodwill and other assets for
58
impairment. These assumptions, judgments and estimates are
inherently limited because they involve techniques, which
could include the use of historical data and AI, that cannot
anticipate or model every economic and financial outcome in
the markets in which Citi operates, nor can they anticipate the
specific impact and timing of such outcomes. For example,
many models used by Citi include assumptions about
correlation or lack thereof among prices of various asset
classes or other market indicators that may not hold in times of
market stress, limited liquidity or other unforeseen
circumstances.
If Citi’s assumptions, judgments or estimates underlying
its financial statements are incorrect or differ from actual or
subsequent events, Citi could experience unexpected losses or
other adverse impacts, some of which could be significant.
Citi could also experience declines in its stock price, be
subject to legal and regulatory proceedings and incur fines and
other losses. For additional information on the key areas for
which assumptions and estimates are used in preparing Citi’s
financial statements, see “Significant Accounting Policies and
Significant Estimates” below and Notes 1 and 16.
For example, the CECL methodology requires that Citi
provide reserves for a current estimate of lifetime expected
credit losses for its loan portfolios and other financial assets,
as applicable, at the time those assets are originated or
acquired. This estimate is adjusted each period for changes in
expected lifetime credit losses. Citi’s ACL estimate is subject
to judgments and depends upon its CECL models and
assumptions; forecasted macroeconomic conditions, including,
among other things, the U.S. unemployment rate and U.S.
inflation-adjusted gross domestic product (real GDP); and the
credit indicators, composition and other characteristics of
Citi’s loan portfolios and other applicable financial assets.
These model assumptions and forecasted macroeconomic
conditions will change over time, resulting in variability in
Citi’s ACL and, thus, impact its results of operations and
financial condition, as well as regulatory capital due to the
CECL phase-in (see the capital return risk factor above). For
additional information on Citi’s ACL, see “Significant
Accounting Policies and Significant Estimates” below and
Notes 1 and 16.
Moreover, Citi has incurred losses related to its foreign
operations that are reported in the CTA components of
Accumulated other comprehensive income (loss) (AOCI). In
accordance with U.S. GAAP, a sale, substantial liquidation or
other deconsolidation event of any foreign operations, such as
those related to Citi’s remaining divestitures or legacy
businesses, would result in reclassification of any foreign CTA
component of AOCI related to that foreign operation,
including related hedges and taxes, into Citi’s earnings. For
example, Citi could incur a significant loss on sale due to CTA
losses related to any such divestitures (see the capital risk
factor above and the emerging markets risk factor below). The
majority of these losses would be regulatory capital neutral at
the completion of the divestiture. For additional information
on Citi’s accounting policy for foreign currency translation
and its foreign CTA components of AOCI, see Notes 1 and 21.
Changes to Financial Accounting and Reporting Standards
or Interpretations Could Have a Material Impact on How
Citi Records and Reports Its Financial Condition and
Results of Operations.
Periodically, the Financial Accounting Standards Board
(FASB) issues financial accounting and reporting standards
that govern key aspects of Citi’s financial statements or
interpretations thereof when those standards become effective,
including those areas where Citi is required to make
assumptions or estimates. Changes to financial accounting or
reporting standards or interpretations, whether promulgated or
required by the FASB, the SEC, U.S. banking regulators or
others, could present operational challenges and could also
require Citi to change certain of the assumptions or estimates
it previously used in preparing its financial statements, which
could negatively impact how it records and reports its
financial condition and results of operations generally and/or
with respect to particular businesses. See Note 1 for additional
information on Citi’s accounting policies and changes in
accounting, including the expected impacts on Citi’s results of
operations and financial condition.
If Citi’s Risk Management and Other Processes, Strategies
or Models Are Deficient or Ineffective, Citi May Incur
Significant Losses and Its Regulatory Capital and Capital
Ratios Could Be Negatively Impacted.
Citi utilizes a broad and diversified set of risk management
and other processes and strategies, including the use of models
in analyzing and monitoring the various risks Citi assumes in
conducting its activities. For example, Citi uses models across
the Company as part of its comprehensive stress testing
initiatives. Citi also relies on data to aggregate, assess and
manage various risk exposures. Management of these risks
and the reliability of the data are made more challenging
within a large, global financial institution, such as Citi,
particularly due to complex, diverse and rapidly changing
financial markets and conditions in which Citi operates.
Unexpected losses can result from untimely, inaccurate or
incomplete processes and data. In 2020 Citigroup and Citibank
entered into Consent Orders with the FRB and OCC that
require Citigroup and Citibank to make improvements in
various aspects of enterprise-wide risk management,
compliance, data quality management related to governance,
and internal controls (see the legal and regulatory proceedings
risk factor below).
In addition, Citi’s risk management and other processes,
strategies and models are inherently limited because they
involve techniques, including the use of historical data in
many circumstances, assumptions and judgments that cannot
anticipate every economic and financial outcome in the
markets in which Citi operates, particularly given various
macroeconomic, geopolitical and other challenges and
uncertainties (see the macroeconomic challenges and
uncertainties risk factor above), nor can they anticipate the
specifics and timing of such outcomes. For example, many
models used by Citi include assumptions about correlation or
lack thereof among prices of various asset classes or other
market indicators that may not necessarily hold in times of
market stress, limited liquidity or other unforeseen
59
circumstances, or identify changes in markets or client
behaviors not yet inherent in historical data.
Citi could incur significant losses, receive negative
regulatory evaluation or examination findings or be subject to
additional enforcement actions, and its regulatory capital,
capital ratios and ability to return capital could be negatively
impacted, if Citi’s risk management and other processes,
including its ability to manage and aggregate data in a timely
and accurate manner, strategies or models are deficient or
ineffective. For additional information, see the capital return
risk factor above and the heightened regulatory scrutiny and
ongoing interpretation of regulatory changes risk factor below.
Such deficiencies or ineffectiveness could also result in
inaccurate financial, regulatory or risk reporting.
Moreover, Citi’s Basel III regulatory capital models,
including its credit, market and operational risk models,
currently remain subject to ongoing regulatory review and
approval, which may result in refinements, modifications or
enhancements (required or otherwise) to these models. Citi is
required to notify and obtain preapproval from both the OCC
and FRB prior to implementing certain risk-weighted asset
treatments, as well as certain model changes, resulting in a
more challenging environment within which Citi must operate
in managing its risk-weighted assets. Modifications or
requirements resulting from these ongoing reviews, as well as
any future changes or guidance provided by the U.S. banking
regulators regarding the U.S. regulatory capital framework
applicable to Citi, including, but not limited to, potential
revisions to the U.S. Basel III rules (see the capital return risk
factor and “Capital Resources—Regulatory Capital Standards
and Developments” above), have resulted, and could continue
to result, in significant changes to Citi’s risk-weighted assets.
These changes can negatively impact Citi’s capital ratios and
its ability to meet its regulatory capital requirements.
CREDIT RISKS
Credit Risk and Concentrations of Risk Can Increase the
Potential for Citi to Incur Significant Losses.
Citi has credit exposures to consumer, corporate and public
sector borrowers and other counterparties in the U.S. and
various countries and jurisdictions globally, including end-of-
period consumer loans of $393 billion and end-of-period
corporate loans of $301 billion at December 31, 2024. For
additional information on Citi’s corporate and consumer loan
portfolios, see “Managing Global Risk—Corporate Credit”
and “—Consumer Credit” below. For information on Citi’s
credit and country risk, see also each respective business’s
results of operations above and “Managing Global Risk—
Other Risks—Country Risk” below and Notes 15 and 16.
A default by or a significant downgrade in the credit
ratings of a borrower or other counterparty, or a decline in the
credit quality or value of any underlying collateral, exposes
Citi to credit risk. Additionally, despite Citi’s target client
strategy, various macroeconomic, geopolitical, market and
other factors, among other things, can increase Citi’s credit
risk and credit costs, particularly for vulnerable sectors,
industries or countries (see the macroeconomic challenges and
uncertainties and co-branding and private label credit card risk
factors above and the emerging markets risk factor below). For
example, a weakening of economic conditions can adversely
affect borrowers’ ability to repay their obligations, as well as
result in Citi being unable to liquidate the collateral it holds or
forced to liquidate the collateral at prices that do not cover the
full amount owed to Citi.
Citi is also a member of various central clearing
counterparties and could incur financial losses as a result of
defaults by other clearing members due to the requirements of
clearing members to share losses. Additionally, due to the
interconnectedness among financial institutions, concerns
about the creditworthiness of or defaults by a financial
institution could spread to other financial market participants
and result in market-wide losses and disruption. For example,
the failure of regional banks and other banking stresses in
recent years resulted in market volatility across the financial
sector.
While Citi provides reserves for expected losses for its
credit exposures, as applicable, such reserves are subject to
judgments and estimates that could be incorrect or differ from
actual future events. For additional information, see the
incorrect assumptions or estimates risk factor above.
Concentrations of risk to clients or counterparties engaged
in the same or related industries or doing business in a
particular geography, or to a particular product or asset class,
especially credit and market risks, can also increase Citi’s risk
of significant losses. For example, Citi routinely executes a
high volume of securities, trading, derivative and foreign
exchange transactions with non-U.S. sovereigns and with
counterparties in the financial services industry, including
banks, insurance companies, investment banks, governments,
central banks and other financial institutions. Moreover, Citi
has indemnification obligations in connection with various
transactions that expose it to concentrations of risk, including
credit risk from hedging or reinsurance arrangements related
to those obligations (see Note 28). A rapid deterioration of a
large borrower or other counterparty or within a sector or
country in which Citi has large exposures or indemnifications
or unexpected market dislocations could lead to concerns
about the creditworthiness of other borrowers or
counterparties in a certain geography and in related or
dependent industries, and such conditions could cause Citi to
incur significant losses.
LIQUIDITY RISKS
Citi’s Businesses, Results of Operations and Financial
Condition Could Be Negatively Impacted if It Does Not
Effectively Manage Its Liquidity.
As a large, global financial institution, adequate liquidity and
sources of funding are essential to Citi’s businesses. Citi’s
liquidity, sources of funding and costs of funding can be
significantly and negatively impacted by factors it cannot
control, such as general disruptions in the financial markets;
changes in fiscal and monetary policies; regulatory
requirements, including changes in regulations; negative
investor or counterparty perceptions of Citi’s creditworthiness;
deposit outflows or unfavorable changes in deposit mix;
unexpected increases in cash or collateral requirements; credit
ratings; and the consequent inability to monetize available
liquidity resources. In addition, Citi competes with other banks
60
and financial institutions for both institutional and consumer
deposits, which represent Citi’s most stable and lowest cost
source of long-term funding. The competition for deposits has
continued to increase in recent years, including as a result of
quantitative tightening by central banks and fixed income
alternatives for customer funds.
Citi’s costs to obtain and access wholesale funding are
directly related to changes in interest and currency exchange
rates and its credit spreads. Changes in Citi’s credit spreads
are driven by both external market factors and factors specific
to Citi, such as negative views by investors of the financial
services industry or Citi’s financial prospects, and can be
highly volatile. For additional information on Citi’s primary
sources of funding, see “Managing Global Risk—Liquidity
Risk” below.
Citi’s ability to obtain funding may be impaired and its
cost of funding could also increase if other market participants
are seeking to access the markets at the same time or to a
greater extent than expected, or if market appetite for
corporate debt securities declines, as is likely to occur in a
liquidity stress event or other market crisis. In such
circumstances, Citi’s ability to sell assets may also be
impaired if other market participants are seeking to sell similar
assets at the same time or a liquid market does not exist for
such assets. Additionally, unexpected changes in client needs
due to idiosyncratic events or market conditions could result in
greater than expected drawdowns from off-balance sheet
committed facilities. A sudden drop in market liquidity could
also cause a temporary or protracted dislocation of capital
markets activity. In addition, clearing organizations, central
banks, clients and financial institutions with which Citi
interacts may exercise the right to require additional collateral
during challenging market conditions, which could further
impair Citi’s liquidity. If Citi fails to effectively manage its
liquidity, its businesses, results of operations and financial
condition could be negatively impacted.
Limitations on the payments that Citigroup Inc. receives
from its subsidiaries could also impact its liquidity. As a
holding company, Citigroup Inc. relies on interest, dividends,
distributions and other payments from its subsidiaries to fund
dividends as well as to satisfy its debt and other obligations.
Several of Citi’s U.S. and non-U.S. subsidiaries are or may be
subject to capital adequacy or other liquidity, regulatory or
contractual restrictions on their ability to provide such
payments, including any local regulatory stress test
requirements and inter-affiliate arrangements entered into in
connection with Citigroup Inc.’s resolution plan. Citigroup
Inc.’s broker-dealer and bank subsidiaries are subject to
restrictions on their ability to lend or transact with affiliates, as
well as restrictions on their ability to use funds deposited with
them in brokerage or bank accounts to fund their businesses.
A bank holding company is also required by law to act as
a source of financial and managerial strength for its subsidiary
banks. As a result, the FRB may require Citigroup Inc. to
commit resources to its subsidiary banks even if doing so is
not otherwise in the interests of Citigroup Inc. or its
shareholders or creditors, reducing the amount of funds
available to meet its obligations.
A Ratings Downgrade Could Adversely Impact Citi’s
Funding and Liquidity.
The credit rating agencies, such as Fitch Ratings, Moody’s
Ratings and S&P Global Ratings, continuously evaluate Citi
and certain of its subsidiaries. Their ratings of Citi and its
rated subsidiaries’ long-term debt and short-term obligations
are based on firm-specific factors, including the financial
strength of Citi and such subsidiaries, as well as factors that
are not entirely within the control of Citi and its subsidiaries,
such as the agencies’ proprietary rating methodologies and
assumptions, potential impact from negative actions on U.S.
sovereign ratings and conditions affecting the financial
services industry and markets generally.
A ratings downgrade could result from, among other
factors, delays or missteps in Citi’s transformation efforts,
including risk management and internal controls
improvements, public statements by Citi’s management or
regulators, operational risk charges, control failures,
substantial failure to meet cost targets, deterioration in Citi’s
funding structure or liquidity, declines in profitability,
significant increases in risk appetite or material reductions in
regulatory capitalization levels.
Citi and its subsidiaries may not be able to maintain their
current respective ratings and outlooks. Ratings downgrades
could negatively impact Citi and its rated subsidiaries’ ability
to access the capital markets and other sources of funds as
well as increase credit spreads and the costs of those funds. A
ratings downgrade could also have a negative impact on Citi
and its rated subsidiaries’ ability to obtain funding and
liquidity due to reduced funding capacity and the impact from
derivative triggers, which could require Citi and its rated
subsidiaries to meet cash obligations and collateral
requirements or permit counterparties to terminate certain
contracts. In addition, a ratings downgrade could have a
negative impact on other funding sources such as secured
financing and other margined transactions for which there may
be no explicit triggers.
Furthermore, a credit ratings downgrade could have
impacts that may not be currently known to Citi or are not
possible to quantify. Some of Citi’s counterparties and clients
could have ratings limitations on their permissible
counterparties, of which Citi may or may not be aware.
Certain of Citi’s corporate customers and trading
counterparties, among other clients, could re-evaluate their
business relationships with Citi and limit the trading of certain
market instruments, and limit or withdraw deposits placed
with Citi in response to ratings downgrades. Changes in
customer and counterparty behavior could impact not only
Citi’s funding and liquidity but also the results of operations of
certain Citi businesses. For additional information on the
potential impact of a reduction in Citi’s or Citibank’s credit
ratings, see “Managing Global Risk—Liquidity Risk—
Potential Impacts of Ratings Downgrades” below.
61
COMPLIANCE RISKS
Significantly Heightened Regulatory Expectations and
Scrutiny in the U.S. and Globally and Ongoing
Interpretation and Implementation of Regulatory and
Legislative Requirements and Changes Have Increased
Citi’s Compliance, Regulatory and Other Risks and Costs.
Large financial institutions, such as Citi, face significantly
heightened regulatory and supervisory expectations and
scrutiny in the U.S. and globally, including with respect to,
among other things, governance, infrastructure, data and risk
management practices and controls. These regulatory and
supervisory expectations extend to employees and agents and
also include, among other things, those related to customer
and client protection, market practices, anti-money laundering,
increasingly complex sanctions and disclosure regimes and
various regulatory reporting requirements.
U.S. financial institutions also face increased expectations
and scrutiny in the wake of the failures of several regional
banks and other banking stresses in 2023. In addition, Citi is
continually required to interpret and implement extensive and
frequently changing regulatory and legislative requirements in
the U.S. and other jurisdictions in which it does business,
which may overlap or conflict across jurisdictions, resulting in
substantial compliance, regulatory and other risks and costs.
A failure to comply with these expectations and
requirements, even if inadvertent, or resolve any identified
deficiencies in a timely and sufficiently satisfactory manner to
regulators, could result in increased regulatory oversight;
material restrictions, including, among others, imposition of
additional capital buffers and limitations on capital
distributions; enforcement proceedings; penalties; and fines
(see the capital return risk factor above and legal and
regulatory proceedings risk factor below).
Moreover, over the past several years, Citi has been
required to implement a large number of regulatory,
supervisory and legislative changes, including new regulatory,
supervisory or legislative requirements or regimes, across its
businesses and functions, and these changes continue. The
changes themselves may be complex and subject to
interpretation, and result in changes to Citi’s businesses. In
addition, the changes require continued substantial technology
and other investments. In some cases, Citi’s implementation of
a regulatory or legislative requirement is occurring
simultaneously with changing or conflicting regulatory
guidance from multiple jurisdictions (including various U.S.
states) and regulators, legal challenges or legislative action to
modify or repeal existing rules or enact new rules.
Examples of regulatory or legislative changes that have
resulted in increased compliance risks and costs include (i) the
U.S. regulatory capital framework and requirements, which
have continued to evolve (see the capital return risk factor and
“Capital Resources” above); (ii) various laws relating to the
limitation of cross-border data movement and/or collection
and use of customer information, including data localization
and protection and privacy laws, which also can conflict with
or increase compliance complexity with respect to other laws,
including anti-money laundering laws; and (iii) the EU’s
Corporate Sustainability Reporting Directive, which may
overlap but also diverge from climate-related disclosure
requirements expected to come into effect in other
jurisdictions.
Citi Is Subject to Extensive Legal and Regulatory
Proceedings, Examinations, Investigations, Consent Orders
and Related Compliance Efforts and Other Inquiries That
Could Result in Large Monetary Penalties, Supervisory or
Enforcement Orders, Business Restrictions, Limitations on
Dividends, Changes to Directors and/or Officers and
Collateral Consequences Arising from Such Outcomes.
Citi’s regulators have broad powers and discretion under their
prudential and supervisory authority, and have pursued active
inspection and investigatory oversight. At any given time, Citi
is a party to a significant number of legal and regulatory
proceedings and is subject to numerous governmental and
regulatory examinations. Additionally, Citi remains subject to
governmental and regulatory investigations, consent orders
(see discussion below) and related compliance efforts, and
other inquiries. Citi could also be subject to enforcement
proceedings and negative regulatory evaluation or examination
findings not only because of violations of laws and
regulations, but also due to failures, as determined by its
regulators, to have adequate policies and procedures, or to
remedy deficiencies on a timely basis (see also the capital
return and resolution plan risk factors above). Citi could face
further scrutiny and consequences from regulators for failing
to timely resolve open regulatory issues or having repeat
regulatory issues.
As previously disclosed, the 2020 FRB Consent Order
and the 2020 OCC Consent Order require Citigroup and
Citibank, respectively, to implement extensive targeted action
plans and submit quarterly progress reports on a timely and
sufficient basis detailing the results and status of
improvements relating principally to various aspects of
enterprise-wide risk management, compliance, data quality
management related to governance, and internal controls.
These improvements will result in continued significant
investments by Citi during 2025 and beyond, as an essential
part of Citi’s broader transformation efforts to enhance its risk,
controls, data and finance infrastructure and compliance (see
the transformation, simplification and other priorities-related
risk factor above).
Additionally, on July 10, 2024, the FRB entered into a
Civil Money Penalty Consent Order with Citigroup, and the
OCC entered into a Civil Money Penalty Consent Order with
Citibank. The OCC and Citibank also entered into an
Amendment to the OCC’s 2020 Consent Order (the
Amendment). The FRB found that Citigroup had ongoing
deficiencies related to its data quality management program
and had inadequate measures for managing and controlling its
data quality risks. The OCC found that Citibank had failed to
make sufficient and sustainable progress toward achieving
compliance with its 2020 Consent Order.
The Amendment requires Citibank to formalize a process
to determine whether sufficient resources are being
appropriately allocated toward achieving timely and
sustainable compliance with the OCC’s 2020 Consent Order,
including any requirements on which Citibank is not making
sufficient and sustainable progress (such process, the Resource
Review Plan). There can be no assurance that the Resource
62
Review Plan and other efforts by Citi to address the
deficiencies and resolve the OCC and FRB Consent Orders
will occur in a manner satisfactory, in both timing and
sufficiency, to the FRB and OCC. (For additional information,
see “Citi’s Multiyear Transformation” above.)
Although there are no restrictions on Citi’s ability to serve
its clients, the OCC Consent Order requires Citibank to obtain
prior approval of any significant new acquisition, including
any portfolio or business acquisition, excluding ordinary
course transactions.
Moreover, the OCC Consent Order provides that the OCC
has the right to assess future civil money penalties or take
other supervisory and/or enforcement actions. Such actions by
the OCC could include imposing business restrictions,
including possible additional limitations on the declaration or
payment of dividends by Citibank and changes in directors
and/or senior executive officers. More generally, the OCC
and/or the FRB could again take enforcement or other actions
if the regulatory agency believes that Citi has not met
regulatory expectations regarding compliance with the consent
orders.
The global judicial, regulatory and political environment
has generally been challenging for large financial institutions,
which have been subject to increased regulatory scrutiny. The
complexity of the federal and state regulatory and enforcement
regimes in the U.S., coupled with the global scope of Citi’s
operations, also means that a single event or issue may give
rise to a large number of overlapping investigations and
regulatory proceedings, either by multiple federal and state
agencies and authorities in the U.S. or by multiple regulators
and other governmental entities in foreign jurisdictions, as
well as multiple civil litigation claims in multiple jurisdictions.
Violations of law by other financial institutions may also
result in regulatory scrutiny of Citi. Responding to regulatory
inquiries and proceedings can be time consuming and costly,
and divert management attention from Citi’s businesses.
U.S. and non-U.S. regulators have been increasingly
focused on the culture of financial services firms, including
Citi, as well as “conduct risk,” a term used to describe the
risks associated with behavior by employees and agents,
including third parties, that could harm clients, customers,
employees or the integrity of the markets, such as improperly
creating, selling, marketing or managing products and services
or improper incentive compensation programs with respect
thereto, failures to safeguard a party’s personal information or
failures to identify and manage conflicts of interest.
In addition to the greater focus on conduct risk, the
general heightened scrutiny and expectations from regulators
could lead to investigations and other inquiries, as well as
remediation requirements, regulatory restrictions, structural
changes, more regulatory or other enforcement proceedings,
civil litigation and higher compliance and other risks and
costs. For additional information, see the capital return and
heightened regulatory scrutiny and ongoing interpretation of
regulatory changes risk factors above. Further, while Citi takes
numerous steps to prevent and detect conduct by employees
and agents that could potentially harm clients, customers,
employees or the integrity of the markets, such behavior may
not always be deterred or prevented.
Moreover, the severity of the remedies sought in legal and
regulatory proceedings to which Citi is subject has remained
elevated. For example, U.S. and certain non-U.S.
governmental entities have increasingly brought criminal
actions against, or have sought and obtained criminal guilty
pleas or deferred prosecution agreements from, financial
institutions and individual employees. These types of actions
by U.S. and other governments may, in the future, have
significant collateral consequences for Citi, including loss of
customers and business, operational loss and the inability to
offer certain products or services and/or operate certain
businesses. Citi may be required to accept or be subject to
similar types of criminal remedies, consent orders, sanctions,
substantial fines and penalties, remediation and other financial
costs or other requirements in the future, including for matters
or practices not yet known to Citi, any of which could
materially and negatively affect Citi’s businesses, business
practices, financial condition or results of operations, require
material changes in Citi’s operations or cause Citi substantial
reputational harm.
Additionally, many large claims—both private civil and
regulatory—asserted against Citi are highly complex, slow to
develop and may involve novel or untested legal theories. The
outcome of such proceedings is difficult to predict or estimate
until late in the proceedings. Although Citi establishes
accruals for its legal and regulatory matters according to
accounting requirements, Citi’s estimates of, and changes to,
these accruals involve significant judgment and may be
subject to significant uncertainty, and the amount of loss
ultimately incurred in relation to those matters may be
substantially higher than the amounts accrued (see the
incorrect assumptions or estimates risk factor above). In
addition, certain settlements are subject to court approval and
may not be approved. Furthermore, regulators may be more
likely to pursue investigations or proceedings against financial
institutions, such as Citi, that have previously been the subject
of other regulatory actions.
For further information on Citi’s legal and regulatory
proceedings, see Note 30.
OTHER RISKS
Citi’s Emerging Markets Presence Subjects It to Various
Risks as well as Increased Compliance and Regulatory Risks
and Costs.
Citi’s presence in the emerging markets subjects it to various
risks. During 2024, emerging markets revenues accounted for
approximately 28% of Citi’s total revenues (based, beginning
in 2024, on the IMF and FFIEC classifications, which resulted
in the exclusion of certain countries that Citi previously
classified as emerging markets).
Emerging market risks include, among others, limitations
or unavailability of hedges on foreign investments; foreign
currency volatility, including devaluations and strength in the
U.S. dollar; central bank interest rate and other monetary
policies, including the impact of sustained high interest rates
in the U.S.; unemployment, recessions or weak or slowing
economic growth; elevated inflation and hyperinflation;
foreign exchange controls, including an inability to access
indirect foreign exchange mechanisms; macroeconomic,
63
geopolitical and domestic political challenges, uncertainties
and volatility, including with respect to China, the Russia–
Ukraine war and conflicts in the Middle East; cyberattacks;
restrictions arising from retaliatory laws and regulations;
sanctions or asset freezes; sovereign debt volatility;
fluctuations in commodity prices; the effects of potential
policy and other changes resulting from the new U.S.
administration, including those related to Mexico; the effects
of potential policy and other changes resulting from the new
Mexican administration and Congress, including judicial
reforms; regulatory changes, including potential conflicts
among regulations with other jurisdictions where Citi does
business; limitations on foreign investment; sociopolitical
instability; civil unrest; crime, corruption and fraud;
nationalization or loss of licenses; potential criminal charges;
closure of branches or subsidiaries; and confiscation of assets;
and these risks can be exacerbated in the event of a
deterioration in the relationship between the U.S. and an
emerging market country.
For example, Citi operates in several countries that have,
or have had in the past, strict capital controls, currency
controls and/or sanctions, such as Argentina and Russia, that
limit its ability to convert local currency into U.S. dollars and/
or transfer funds outside of those countries. For instance, Citi
may need to record additional translation losses due to
currency controls in Argentina (see “Managing Global Risk—
Other Risks—Country Risk—Argentina” below). Moreover,
Citi may need to record additional reserves for expected losses
for its credit exposures based on the transfer risk associated
with exposures outside the U.S., driven by safety and
soundness considerations under U.S. banking law (see
“Managing Global Risk—Other Risks—Country Risk—
Argentina” and “—Russia” and “Significant Accounting
Policies and Significant Estimates” below).
In the event of a loss of control of AO Citibank in Russia,
Citi would be required to (i) write off its remaining nominal
net investment, (ii) recognize a CTA loss of approximately
$1.6 billion through earnings and (iii) recognize a loss of $0.9
billion on intercompany liabilities owed by AO Citibank to
other Citi entities outside of Russia. In the sole event of a
substantial liquidation, as opposed to a loss of control, Citi
would be required to recognize the CTA loss of approximately
$1.6 billion through earnings and would evaluate its remaining
net investment as circumstances evolve. For additional
information about these risks and related potential impacts, see
the operational processes and systems and cybersecurity risk
factors above and “Managing Global Risk—Other Risks—
Country Risk—Russia” below.
In addition, political turmoil and instability; geopolitical
challenges, tensions and conflicts (including those related to
China, the Russia–Ukraine war and the conflicts in the Middle
East); terrorism; and other instabilities have occurred in
various regions and emerging market countries across the
globe, which impact Citi’s businesses, results of operations
and financial conditions in those countries where Citi operates
and have required, and may continue to require, management
time and attention and other resources, such as managing the
impact of sanctions and their effect on Citi’s operations in
certain emerging market countries. For additional information,
see the macroeconomic challenges and uncertainties risk
factor above.
64
NET ZERO AND SUSTAINABILITY
This section summarizes Citi’s net zero commitment,
sustainable operations and sustainable finance goals. For
information regarding Citi’s management of climate risk, see
“Managing Global Risk—Strategic Risk—Climate Risk”
below.
Net Zero Emissions by 2050
As previously disclosed, Citi has committed to achieving net
zero greenhouse gas (GHG) emissions associated with its
financing by 2050, and net zero GHG emissions for its own
operations by 2030. This commitment spans Citi’s select
lending portfolios, capital markets business and operational
footprint.
Citi’s Net Zero Plan:
•
Implementation Strategy: Engage with and assess clients
to determine transition opportunities.
•
Engagement Strategy: Solicit feedback from clients,
investors and other stakeholders as this work continues to
evolve.
•
Metrics and Targets: Calculate financed emissions
metrics for each applicable carbon-intensive sector and
report on progress for emissions reductions targets for
2030 and beyond.
Progress on Citi’s Net Zero Financing Commitment:
•
Citi has published interim 2030 emissions targets for 10
loan portfolios: aluminum, auto manufacturing, aviation,
cement, commercial real estate (North America), energy,
power, shipping, steel and thermal coal mining. Three of
these targets (auto manufacturing, energy and power)
include facilitated emissions from capital markets
activities as well.
•
In 2024, Citi completed the initial assessments in the auto
manufacturing and steel sectors, to complement those in
the energy and power sectors concluded in 2023, to better
understand their strategies and approach to the climate
transition.
Citi recognizes that energy transition, energy security and
economic growth are not mutually exclusive and must be
addressed simultaneously. Citi works on executing its climate
commitments and supports its clients in financing their
transition to low-carbon business models, while also working
with clients to prioritize global energy security, including for
emerging markets where access to affordable energy is a top
concern.
Sustainable Operations
In addition to the 2030 net zero GHG emissions commitment
for its own operations, Citi measures progress against
operational footprint goals, which include efforts to reduce the
environmental impact of its facilities through reductions in
emissions, energy usage, water consumption and waste
generation. In 2024, Citi made progress toward these goals by
increasing on-site solar generation, promoting initiatives on
waste diversion and recycling, and employing more carbon-
efficient techniques for building renovations.
Sustainable Finance
Citi’s $1 Trillion Sustainable Finance Goal, as previously
disclosed, is an integrated effort across the organization to
finance and facilitate $1 trillion in environmental and social
finance activities with product and service offerings across
multiple lines of business.
Additional Information
The “Citi Climate Report,” formerly the “Task Force on
Climate-Related Financial Disclosure (TCFD) Report,”
provides additional information on Citi’s continued progress
to manage climate risk and its Net Zero Plan, including
information on financed and facilitated emissions and 2030
interim emissions reduction targets. For additional information
on Citi’s environmental and social policies and priorities, click
on “Our Impact” on Citi’s website at www.citigroup.com. For
information on Citi’s environmental and social governance,
see Citi’s 2025 Annual Meeting Proxy Statement to be filed
with the SEC in March 2025.
Citi’s climate reporting and any other environmental and
social governance-related reports and information included
elsewhere on Citi’s website are not incorporated by reference
into, and do not form any part of, this Form 10-K.
65
HUMAN CAPITAL RESOURCES AND
MANAGEMENT
Citi strives to deliver to its full potential by focusing on its
strategic priority of attracting and retaining highly qualified
and motivated employees. Citi’s vision remains—to be the
preeminent banking partner for institutions with cross-border
needs, a global leader in wealth management and a valued
personal bank in the U.S. Citi is structured around five core
interconnected businesses—Services, Markets, Banking,
Wealth and USPB, a centralized client organization to
strengthen how Citi delivers for clients across the Company
and an international unit to oversee the local delivery of the
Company’s services and products to clients in each of the
markets where Citi has an on-the-ground presence to serve and
support large and mid-sized companies. Citi seeks to enhance
the competitive strength of its workforce through the
following efforts:
•
Continuously innovating its efforts to recruit, train,
develop, compensate, promote and engage employees
•
Actively seeking and listening to diverse perspectives at
all levels of the organization
•
Providing compensation programs that are competitive in
the market and aligned to strategic objectives
Workforce Size and Distribution
As of December 31, 2024, Citi employed approximately
229,000 people in over 90 countries. The Company’s
workforce is constantly evolving and developing, benefiting
from a strong mix of internal and external hiring into new and
existing positions. In 2024, Citi welcomed over 24,000 new
employees in addition to 39,700 roles filled by existing
employees through internal mobility, including promotions.
Citi also maintains connections with former employees
through its alumni network, and in 2024, welcomed more than
3,400 individuals back to Citi.
The following table presents the geographic distribution of Citi’s employees by segment, component and gender:
Segment or component(1)(2) (in thousands)
North
America
International(3)
Total(4)
Women
Men
Services
4
20
24
51.8 %
48.2 %
Markets
3
6
9
38.8
61.2
Banking
2
6
8
43.5
56.5
Wealth
5
7
12
50.9
49.1
USPB
19
2
21
64.1
35.9
All Other, including Legacy Franchises, Operations and
Technology, and Global Staff Functions
53
102
155
47.6
52.4
Total
86
143
229
49.2 %
50.8 %
(1)
Employee distribution is based on business and region, which may not reflect where the employee physically resides.
(2)
See Note 3 for compensation by reportable segment. Compensation expense related to services provided by employees in the Corporate/Other unit within All
Other is allocated to each respective reportable segment, as applicable, through non-compensation expense.
(3)
Mexico is included in International.
(4)
Part-time employees represented less than 1.0% of Citi’s global workforce.
66
Talent Management
Citi is committed to a workforce consisting of the best talent
from the broadest pools available to drive innovation and best
serve its clients, customers and communities.
Driving a Culture of Excellence and Accountability
Citi’s talent and culture initiatives focus on fostering a culture
of excellence and accountability that is supported by strong
risk and controls management.
Citi’s Leadership Principles of “taking ownership,
delivering with pride and succeeding together” have been
reinforced through a behavioral science-led campaign, Citi’s
New Way, which reinforces the key working habits that
support Citi’s leadership culture.
Citi’s performance management approach emphasizes the
Leadership Principles through a four-pillar system, evaluating
what employees deliver against financial, risk and controls,
and client and franchise goals, as well as how employees
deliver from a leadership perspective. The performance
management and incentive compensation processes, policies
and frameworks promote accountability and consistency, in
particular for risk and controls.
Citi’s culture initiatives are also supported by changes in
the way Citi identifies, assesses, develops and promotes talent,
particularly at the most senior levels of the organization.
Workforce Development
Citi’s numerous programmatic offerings aim to reinforce its
culture and values, foster understanding of compliance
requirements and develop competencies required to deliver
excellence to its clients. Citi encourages career growth and
development by offering broad and diverse opportunities to
employees, including the following:
•
Providing a range of internal development and rotational
programs to employees at all levels, including an
extensive leadership curriculum, allowing the opportunity
to build the skills needed to transition to supervisory and
managerial roles. Citi’s tuition assistance program further
enables employees in North America to pursue their
educational goals.
•
Continuing to focus on internal talent development and
aims to provide employees with career growth
opportunities. There was a total of 39,700 mobility
opportunities filled in 2024. These opportunities are
particularly important as Citi focuses on providing career
paths for its internal talent base as part of its efforts to
increase organic growth within the organization.
•
Continuing to encourage all employees to create
developmental plans and consider the competencies and
skills they need to develop in order to achieve their career
aspirations. In 2023, Citi launched a “Development 365”
campaign that drove significant increases in the number
of employees across Citi who had developmental plans
and conversations with their managers.
Pay Transparency and Pay Equity
In addition, Citi has continued its effort to support its global
workforce, including taking actions with respect to pay equity.
Citi values pay transparency and has taken significant
action to provide managers and other employees with greater
clarity about Citi’s compensation philosophy. Citi has
introduced market-based salary structures and bonus
opportunity guidelines in various countries worldwide, and
posts salary ranges on all external U.S. job postings, which
aligns with strategic objectives of pay equity and transparency.
In addition, Citi has focused on measuring and addressing pay
equity within the organization.
Citi’s annual pay equity analysis for 2024 determined that
on an adjusted basis, global gender and U.S. racial pay gaps
are in each case less than 1%. The adjusted pay gap is a true
measure of pay equity, or “like for like,” that compares the
compensation of women to men and U.S. minorities to non-
minorities when adjusting for factors such as job function,
title/level and geography.
Benefits and Well-being
Citi is proud to provide a wide range of benefits that support
its employees’ mental, social, physical and financial well-
being through various life stages and events. Such benefits
contribute to Citi’s ability to attract, engage and retain
employees.
Among the benefits Citi offers are mental health
counseling for employees and their family members, access to
onsite medical care clinics, fitness centers, subsidized gym
memberships and virtual physical therapy in several locations,
and leave programs, including parental and caregiver leaves in
certain locations to continue to support employees and their
families.
In addition, Citi was the first major U.S. bank to publicly
embrace a flexible, hybrid work model, which Citi fully
implemented across the organization. Most of Citi’s
employees now work in hybrid roles, working remotely up to
two days a week.
67
This page intentionally left blank.
68
Managing Global Risk—Table of Contents
MANAGING GLOBAL RISK
70
CREDIT RISK(1)
74
Loans
74
Corporate Credit
75
Consumer Credit
81
Additional Consumer and Corporate Credit Details
88
Loans Outstanding
88
Details of Credit Loss Experience
89
Allowance for Credit Losses on Loans (ACLL)
91
Non-Accrual Loans and Assets
93
LIQUIDITY RISK
96
Liquidity Monitoring and Measurement
96
High-Quality Liquid Assets (HQLA)
97
Liquidity Coverage Ratio (LCR)
97
Deposits
98
Long-Term Debt
99
Secured Funding Transactions and Short-Term Borrowings
102
Credit Ratings
103
MARKET RISK(1)
104
Market Risk of Non-Trading Portfolios
104
Banking Book Interest Rate Risk
104
Interest Rate Risk of Investment Portfolios—Impact on AOCI
105
Changes in Foreign Exchange Rates—Impacts on AOCI and Capital
107
Interest Income/Expense and Net Interest Margin (NIM)
108
Additional Interest Rate Details
110
Market Risk of Trading Portfolios
114
Factor Sensitivities
115
Value at Risk (VaR)
115
Stress Testing
118
OPERATIONAL RISK
118
Cybersecurity Risk
119
COMPLIANCE RISK
121
REPUTATION RISK
122
STRATEGIC RISK
122
Climate Risk
122
OTHER RISKS
124
Country Risk
124
Top 25 Country Exposures
124
Russia
125
Ukraine
127
Argentina
127
FFIEC—Cross-Border Claims on Third Parties and Local Country Assets
128
(1)
For additional information regarding certain credit risk, market risk and other quantitative and qualitative information, refer to
Citi’s Pillar 3 Basel III Advanced Approaches Disclosures, as required by the rules of the FRB, on Citi’s Investor Relations website.
These Pillar 3 disclosures are not incorporated by reference into, and do not form any part of, this Form 10-K.
69
MANAGING GLOBAL RISK
Overview
For Citi, effective risk management is of primary importance
to its overall operations. Accordingly, Citi has established an
Enterprise Risk Management (ERM) Framework to ensure
that all of Citi’s risks are managed appropriately and
consistently across the Company and at an aggregate,
enterprise-wide level. Citi’s culture drives a strong risk and
control environment, and is at the heart of the ERM
Framework, underpinning the way Citi conducts business. The
activities that Citi engages in, and the risks those activities
generate, must be consistent with Citi’s Mission and Value
Proposition (see below) and the key Leadership Principles that
support it, as well as Citi’s risk appetite. As discussed above,
Citi also continues its efforts to comply with the 2020 FRB
and OCC Consent Orders and the OCC’s 2024 Consent Order
Amendment, relating principally to various aspects of risk
management, compliance, data quality management related to
governance, and internal controls (see “Citi’s Multiyear
Transformation—FRB and OCC Consent Orders
Compliance” and “Risk Factors—Compliance Risks” above).
Under Citi’s Mission and Value Proposition, which was
developed by its senior leadership and distributed throughout
the Company, Citi strives to serve its clients as a trusted
partner by responsibly providing financial services that enable
growth and economic progress while earning and maintaining
the public’s trust by constantly adhering to the highest ethical
standards. As such, Citi asks all employees to ensure that their
decisions pass three tests: they are in Citi’s clients’ best
interests, create economic value and are always systemically
responsible.
As discussed in “Human Capital Resources and
Management” above, Citi has designed Leadership Principles
that represent the qualities, behaviors and expectations all
employees must exhibit to deliver on Citi’s mission of
enabling growth and economic progress. The Leadership
Principles inform Citi’s ERM Framework and contribute to
creating a culture that drives client, control and operational
excellence. Citi employees share a common responsibility to
uphold these Leadership Principles and hold themselves to the
highest standards of ethics and professional behavior in
dealing with Citi’s clients, business colleagues, shareholders,
communities and each other.
Citi’s ERM Framework details the principles used to
support effective enterprise-wide risk management across the
end-to-end risk management lifecycle. The ERM Framework
covers the risk management roles and responsibilities of the
Citigroup Board of Directors (the Board), Citi’s Executive
Management Team (see “Risk Governance—Executive
Management Team” below) and employees across the lines of
defense. The underlying pillars of the framework encompass:
•
Culture—the core principles and behaviors that underpin
a strong culture of risk awareness, in line with Citi’s
Mission and Value Proposition, and Leadership
Principles;
•
Governance—the committee structure and reporting
arrangements that support the appropriate oversight of
risk management activities at the Board and Executive
Management Team levels and establish Citi’s Lines of
Defense model;
•
Risk Management—the end-to-end risk management
cycle including the identification, measurement,
monitoring, controlling and reporting of all risks
including top, material, growing, idiosyncratic and
emerging risks, and aggregated to an enterprise-wide
level; and
•
Enterprise Programs—the key risk management
programs performed across the risk management lifecycle
for all risk categories.
Each of these pillars is underpinned by supporting
capabilities covering people, infrastructure and tools that are
in place to enable the execution of the ERM Framework.
Controls are established to mitigate the risks associated with
the execution of these pillars and supporting capabilities.
Citi’s approach to risk management requires that its risk-
taking be consistent with its risk appetite. Risk appetite is the
aggregate level of risk that Citi is willing to tolerate in order to
achieve its strategic objectives and business plan. Risk limits
and thresholds represent allocations of Citi’s risk appetite to
businesses and risk categories. Concentration risks are
controlled through a subset of these limits and thresholds.
Citi’s risks are generally categorized and summarized as
follows:
•
Credit risk is the risk of loss resulting from the decline in
credit quality (or downgrade risk) or failure of a borrower,
counterparty, third party or issuer to honor its financial or
contractual obligations.
•
Liquidity risk is the risk that Citi will not be able to
efficiently meet both expected and unexpected current and
future cash flow and collateral needs without adversely
affecting either daily operations or financial conditions of
Citi. Risk may be exacerbated by the inability of the
Company to access funding sources or monetize assets
and the composition of liability funding and liquid assets.
•
Market risk (trading and non-trading): Market risk of
trading portfolios is the risk of economic or trading loss
arising from changes in the value of Citi’s assets and
liabilities resulting from changes in market variables, such
as interest rates, equity and commodity prices, foreign
exchange rates or credit spreads. Market risk of non-
trading portfolios is the impact of adverse changes in
market variables such as interest rates, foreign exchange
rates, credit spreads and equity prices on Citi’s net interest
income, economic value of equity or AOCI.
•
Operational risk is the risk of loss resulting from
inadequate or failed internal processes, people and
systems, or from external events. It includes legal risk,
which is the risk of loss (including litigation costs,
settlements and regulatory fines) resulting from Citi’s
failure to comply with laws, regulations, prudent ethical
standards or contractual obligations in any aspect of Citi’s
business, but excludes strategic and reputation risks (see
below).
•
Compliance risk is the risk to current or projected
financial condition and resilience arising from violations
of laws, rules or regulations, or from non-conformance
70
with prescribed practices, internal policies and procedures
or ethical standards.
•
Reputation risk is the risk to current or projected financial
conditions and resilience from negative opinion held by
stakeholders. This risk may impair Citi’s competitiveness
by affecting its ability to establish new relationships or
services or continue servicing existing relationships.
•
Strategic risk is the risk of a sustained impact (not
episodic impact) to Citi’s core strategic objectives as
measured by impacts on anticipated earnings, market
capitalization or capital, arising from the external factors
affecting the Company’s operating environment, as well
as the risks associated with defining the strategy and
executing the strategy, which are identified, measured and
managed as part of the Strategic Risk Framework at the
Enterprise Level.
Additionally, Citi categorizes and summarizes risks that
span the above risk categories, such as concentration risk,
country risk and climate risk.
Citi uses a lines of defense model as a key component of
its ERM Framework to manage its risks. As discussed below,
the lines of defense model brings together risk-taking, risk
oversight and risk assurance under one umbrella and provides
an avenue for risk accountability of the first line of defense, a
construct for effective challenge by the second line of defense
(Independent Risk Management and Independent Compliance
Risk Management), and empowers independent risk assurance
by the third line of defense (Internal Audit). In addition, the
lines of defense model includes organizational units tasked
with supporting a strong control environment (enterprise
support functions). The first, second and third lines of defense,
along with enterprise support functions, have distinct roles and
responsibilities and are empowered to perform relevant risk
management processes and responsibilities in order to manage
Citi’s risks in a consistent and effective manner.
First Line of Defense: Front Line Units and Front Line
Unit Activities
Citi’s first line of defense owns the risks and associated
controls inherent in, or arising from, the execution of its
business activities and is responsible for identifying,
measuring, monitoring, controlling and reporting those risks
consistent with Citi’s strategy, Mission and Value Proposition,
Leadership Principles and risk appetite.
Front line units are responsible and held accountable for
managing the risks associated with their activities within the
boundaries set by independent risk management. They are also
responsible for designing and implementing effective internal
controls and maintaining processes for managing their risk
profile, including through risk mitigation, so that it remains
consistent with Citi’s established risk appetite.
Front line unit activities are considered part of the first
line of defense and are subject to the oversight and challenge
of independent risk management.
The first line of defense is composed of Citi’s operating
segments (i.e., Services, Markets, Banking, Wealth, U.S.
Personal Banking), as well as International, North America
and All Other (including certain corporate functions (i.e.,
Chief Operating Office, Enterprise Services and Public
Affairs, Finance, Technology and Business Enablement). In
addition, the first line of defense includes the front line unit
activities of other organizational units. Front line units may
also include lower-level enterprise support functions and/or
conduct enterprise support activities—see “Enterprise Support
Functions” below.
Second Line of Defense: Independent Risk Management
Independent risk management units are independent of the
first line of defense. They are responsible for overseeing the
risk-taking activities of the first line of defense and
challenging the first line of defense in the execution of its risk
management responsibilities. They are also responsible for
independently identifying, measuring, monitoring, controlling
and reporting aggregate risks and for setting standards for the
management and oversight of risk. Independent risk
management is composed of Independent Risk Management
(IRM) and Independent Compliance Risk Management
(ICRM), which are led by the Group Chief Risk Officer
(CRO) and Group Chief Compliance Officer (CCO) who have
unrestricted access to the Board and its Risk Management
Committee to facilitate the ability to execute their specific
responsibilities pertaining to escalation to the Board.
Independent Risk Management
The IRM organization sets risk and control standards for the
first line of defense and actively manages and oversees
aggregate credit, market (trading and non-trading), liquidity,
strategic, operational and reputation risks across Citi,
including risks that span categories, such as concentration risk,
country risk and climate risk.
IRM is organized to align to businesses, risk categories,
legal entities/clusters and Company-wide, cross-risk functions
or processes. Each of these units reports to a member of the
Risk Management Executive Council, who all report to the
Citigroup CRO.
Independent Compliance Risk Management
The ICRM organization actively oversees compliance risk
across Citi, sets compliance standards for the first line of
defense to manage compliance risk and promotes business
conduct and activity that is consistent with Citi’s Mission and
Value Proposition and the compliance risk appetite. Citi’s
objective is to embed an enterprise-wide compliance risk
management framework and culture that identifies, measures,
monitors, controls and escalates compliance risk across Citi.
ICRM is aligned by business, function and geography to
provide compliance risk management advice and credible
challenge on day-to-day matters and strategic decision-making
for key initiatives. ICRM also has program-level Enterprise
Compliance units responsible for setting standards and
establishing priorities for program-related compliance efforts.
The CCO reports to Citi’s Chief Legal Officer and ICRM is
organizationally part of the Global Legal Affairs &
Compliance group. In addition, the CCO has matrix reporting
into the CRO and is part of the Risk Management Executive
Council.
71
Third Line of Defense: Internal Audit
Internal Audit is independent of the first line, second line and
enterprise support functions. The role of Internal Audit is to
provide independent, objective, reliable, valued and timely
assurance to the Board, its Audit Committee, Citi senior
management and regulators over the effectiveness of
governance, risk management and controls that mitigate
current and evolving risks and enhance the control culture
within Citi. The Citi Chief Auditor manages Internal Audit
and reports functionally to the Chair of the Citi Audit
Committee and administratively to Citi’s CEO. The Citi Chief
Auditor has unrestricted access to the Board and the Board
Audit Committee to address risks and issues identified through
Internal Audit’s activities.
Enterprise Support Functions
Enterprise support functions engage in activities that support
safety and soundness across Citi. These functions provide
advisory services and/or design, implement, maintain and
oversee Company-wide programs that support Citi in
maintaining an effective control environment.
Enterprise support functions are composed of Human
Resources and Global Legal Affairs and Compliance
(exclusive of ICRM, which is part of the second line of
defense). Front line units may also include enterprise support
units and/or conduct enterprise support activities (e.g., the
Controllers Group within Finance).
Enterprise support functions, units and activities are
subject to the relevant Company-wide independent oversight
processes specific to the risks for which they are accountable
(e.g., operational risk, compliance risk, reputation risk).
Risk Governance
Citi’s ERM Framework encompasses risk management
processes to address risks undertaken by Citi through
identification, measurement, monitoring, controlling and
reporting of all risks. The ERM Framework integrates these
processes with appropriate governance to complement Citi’s
commitment to maintaining strong and consistent risk
management practices.
Board Oversight
The Board is responsible for oversight of Citi and holds the
Executive Management Team accountable for implementing
the ERM Framework and meeting strategic objectives within
Citi’s risk appetite.
Executive Management Team
The Citigroup CEO directs and oversees the day-to-day
management of Citi as delegated by the Board of Directors.
The CEO leads the Company through the Executive
Management Team and provides oversight of group activities,
both directly and through authority delegated to committees
established to oversee the management of risk, to ensure
continued alignment with Citi’s risk strategy.
Board and Executive Management Committees
The Board executes its responsibilities either directly or
through its committees. The Board has delegated authority to
the following Board standing committees to help fulfill its
oversight and risk management responsibilities:
•
Audit Committee: assists the Board in fulfilling its
oversight responsibility relating to (i) the integrity of
Citigroup’s consolidated financial statements, financial
reporting process and systems of internal accounting and
financial controls, (ii) the performance of the internal
audit function (Internal Audit), (iii) the annual
independent integrated audit of Citigroup’s consolidated
financial statements and effectiveness of Citigroup’s
internal control over financial reporting, the engagement
of the independent registered public accounting firm
(Independent Auditors) and the evaluation of the
Independent Auditors’ qualifications, independence and
performance, (iv) holding management accountable for
the effectiveness of Citigroup’s control environment and
status of corrective actions, including the timely
remediation of control breaks (including, without
limitation, significant compliance or operational control
breaks), (v) policy standards and guidelines for risk
assessment and risk management, (vi) Citigroup’s
compliance with legal and regulatory requirements,
including Citigroup’s disclosure controls and procedures
and (vii) the fulfillment of the other responsibilities set
out in the Audit Committee’s Charter.
•
Compensation, Performance Management and Culture
Committee: is responsible for overseeing compensation of
employees of the Company and its subsidiaries and
affiliates and Citi management’s sustained focus on
fostering a principled culture of sound ethics, responsible
conduct and accountability within the organization. The
Committee regularly reviews Citi’s management
resources and the performance of senior management.
The Committee is responsible for determining the
compensation for the Chief Executive Officer and
approving the compensation of other executive officers of
the Company and members of Citi’s Executive
Management Team. The Committee is also responsible
for approving the incentive compensation structure for
other members of senior management and certain highly
compensated employees (including discretionary
incentive awards to covered employees as defined in
applicable bank regulatory guidance), in accordance with
guidelines established by the Committee from time to
time. The Committee also has broad oversight over
compliance with bank regulatory guidance governing
Citi’s incentive compensation.
•
Nomination, Governance and Public Affairs Committee:
is responsible for (i) identifying individuals qualified to
become Board members and recommending to the Board
the director nominees for the next annual meeting of
stockholders, (ii) leading the Board in its annual review of
the Board’s performance, (iii) recommending to the Board
directors for each committee for appointment by the
Board, (iv) reviewing the Company’s policies and
programs that relate to public issues of significance to the
72
Company and the public at large and (v) reviewing the
Company’s relationships with external constituencies and
issues that impact the Company’s reputation, and advising
management as to its approach to each.
•
Risk Management Committee: assists the Board in
fulfilling its responsibility with respect to (i) oversight of
Citigroup’s risk management framework and risk culture,
including the significant policies and practices used in
managing credit, market (trading and non-trading),
liquidity, strategic, operational, compliance and
reputation, including those pertaining to capital
management, and (ii) oversight of the performance of the
Global Risk Review (GRR) credit and collateral review
function. The Committee reports to the Board of Directors
regarding Citigroup’s risk profile, as well as
management’s adherence to its risk management
framework, including the significant policies and
practices employed to manage risks in Citigroup, as well
as the overall adequacy of the Risk Management function.
•
Technology Committee: assists the Board in fulfilling its
responsibility for oversight of the Company and its
subsidiaries and affiliates with respect to (i) the planning
and execution of Citigroup’s technology strategy and
operating plan, (ii) the development of Citi’s target state
operating model and architecture, (iii) technology-based
risk management, including risk management framework,
risk appetite and risk exposures of the Company,
including cybersecurity, (iv) resource and talent planning
of the Technology function and (v) the Company’s third-
party management policies, practices and standards that
relate to Technology.
In addition to the above, the Board has established the
following ad hoc committee:
•
Transformation Oversight Committee: provides oversight
of the actions of Citi’s management to develop and
execute a transformation of Citi’s risk and control
environment pursuant to the FRB and OCC Consent
Orders (see “Citi’s Multiyear Transformation—FRB and
OCC Consent Orders Compliance” above).
The Citigroup CEO has established four standing
committees that cover the primary risks to which Citi (i.e.,
Group) is exposed. These consist of:
•
Citigroup Asset and Liability Committee (ALCO):
responsible for governance over management’s liquidity
risk and market risk (non-trading) management and for
monitoring and influencing the balance sheet, investment
securities and capital management activities of Citigroup.
•
Group Business Risk and Control Committee (GBRCC):
provides governance oversight of Citi’s compliance and
operational risks and is responsible for ensuring that these
risks are adequately identified, monitored, reported,
managed and escalated, and that appropriate action is
taken.
•
Group Reputation Risk Committee (GRRC): provides
governance oversight for reputation risk management
across Citi, while promoting the culture of risk awareness
and high standards of culture and conduct.
•
Group Risk Management Committee (GRMC): the
primary senior executive level committee responsible for
(i) overseeing the execution of Citigroup’s ERM
Framework, (ii) monitoring Citi’s risk profile at an
aggregate level inclusive of individual risk categories, (iii)
ensuring that Citi’s risk profile remains consistent with its
approved risk appetite and (iv) discussing material and
emerging risks facing the Company. The Committee also
provides comprehensive Group-wide coverage of credit
risk, market risk (trading) and strategic risk.
In addition to the Executive Management committees
listed above, management may establish ad-hoc committees in
response to regulatory feedback or to manage additional
activities when deemed necessary.
The figure below illustrates the reporting lines between the Board and Executive Management committees:
73
CREDIT RISK
Overview
Credit risk is the risk of loss resulting from the decline in
credit quality of a client, customer or counterparty (or
downgrade risk) or the failure of a borrower, counterparty,
third party or issuer to honor its financial or contractual
obligations. For example, credit risk can arise from a
deterioration in (i) the operating and financial performance of
a borrower or (ii) a decline in the quality or value of any
underlying collateral, both of which may also be impacted by
adverse changes in macroeconomic, geopolitical, market and
other factors. Credit risk is one of the most significant risks
Citi faces as an institution (see “Risk Factors—Credit Risks”
above). Credit risk arises in many of Citigroup’s business
activities, including:
•
consumer, commercial and corporate lending;
•
capital markets derivative transactions;
•
structured finance; and
•
securities financing transactions (repurchase and reverse
repurchase agreements, and securities loaned and
borrowed).
Credit risk also arises from clearing and settlement
activities, when Citi transfers an asset in advance of receiving
its counter-value or advances funds to settle a transaction on
behalf of a client. Concentration risk, within credit risk, is the
risk associated with having credit exposure concentrated
within a specific client, industry, region or other category.
Citi has an established framework in place for managing
credit risk across all businesses that includes a defined risk
appetite, credit limits and credit policies. Citi’s credit risk
management framework also includes policies and procedures
to manage problem exposures.
To manage concentration risk, Citi has in place a
framework consisting of industry limits, single-name
concentrations for each business and across Citigroup and a
specialized product limit framework.
Credit exposures are generally reported in notional terms
for accrual loans, reflecting the value at which the loans as
well as other off-balance sheet commitments are carried on the
Consolidated Balance Sheet. Credit exposure arising from
capital markets activities is generally expressed as the current
mark-to-market, net of margin, reflecting the net value owed
to Citi by a given counterparty.
Citi’s loans are reported in two categories: corporate and
consumer. These categories are classified primarily according
to the operating segment, reporting unit and component that
manage the loans in addition to the nature of the obligor, with
corporate loans generally made for corporate institutional and
public sector clients around the world and consumer loans to
retail and small business customers.
The credit risk associated with Citi’s credit exposures is a
function of the idiosyncratic creditworthiness of the obligor, as
well as the terms and conditions of the specific obligation. Citi
assesses the credit risk associated with its credit exposures on
a regular basis through its allowance for credit losses (ACL)
process (see “Significant Accounting Policies and Significant
Estimates—Allowance for Credit Losses” below and Notes 1
and 16), as well as through regular stress testing at the
company, business, geography and product levels. These
stress-testing processes typically estimate potential
incremental credit costs that would occur as a result of either
downgrades in the credit quality or defaults of the obligors or
counterparties. See Notes 15 and 16 for additional information
on Citi’s credit risk management.
Loans
The table below details the average loans, by segment and/or
business, and the total Citigroup end-of-period loans for each
of the periods indicated:
In billions of dollars
4Q24
3Q24
4Q23
Services
$
87 $
87 $
83
Markets
122
119
115
Banking
84
88
89
Wealth
148
150
150
USPB
Branded Cards
$
113 $
111 $
107
Retail Services
52
51
52
Retail Banking
51
48
43
Total USPB
$
216 $
210 $
202
All Other
$
31 $
33 $
36
Total Citigroup loans (AVG)
$
688 $
687 $
675
Total Citigroup loans (EOP)
$
694 $
689 $
689
On an average basis, loans increased 2% year-over-year
and were relatively unchanged sequentially. The year-over-
year increase was largely due to growth in USPB, Markets and
Services.
As of the fourth quarter of 2024, average loans for:
•
Services increased 5% year-over-year, primarily driven by
strong demand in TTS for export and agency finance, as
well as working capital loans.
•
Markets increased 6% year-over-year, largely driven by
asset-backed securitization lending and North America
residential financing in spread products.
•
Banking decreased 6% year-over-year, primarily driven
by regulatory capital optimization efforts.
•
Wealth decreased 1%, primarily driven by regulatory
capital optimization efforts.
•
USPB increased 7% year-over-year, driven by growth in
Retail Banking due to an increase in mortgage loans as a
result of lower refinancings due to a higher interest rate
environment and higher mortgage originations, as well as
Branded Cards due to lower card payment rates and
higher card spend volume.
End-of-period loans increased 1% year-over-year and
sequentially. The year-over-year increase was largely due to
growth in Branded Cards and Retail Banking in USPB, as well
as growth in Markets and Services.
74
CORPORATE CREDIT
Consistent with its overall strategy, Citi’s corporate clients are
typically corporations that value the depth and breadth of
Citi’s global network. Citi aims to establish relationships with
these clients whose needs encompass multiple products,
including cash management and trade services, foreign
exchange, lending, capital markets and M&A advisory.
Corporate Credit Portfolio
The following table details Citi’s corporate credit portfolio across Services, Markets, Banking and the Mexico SBMM component of
All Other—Legacy Franchises (excluding loans carried at fair value and loans held-for-sale), and before consideration of collateral or
hedges, by remaining tenor for the periods indicated:
December 31, 2024
September 30, 2024
December 31, 2023
In billions of dollars
Due
within
1 year
Greater
than
1 year
but
within
5 years
Greater
than
5 years
Total
exposure
Due
within
1 year
Greater
than
1 year
but
within
5 years
Greater
than
5 years
Total
exposure
Due
within
1 year
Greater
than
1 year
but
within
5 years
Greater
than
5 years
Total
exposure
Direct outstandings
(on-balance sheet)(1)
$ 133 $
122 $
39 $
294 $ 137 $
118 $
37 $
292 $ 132 $
122 $
39 $
293
Unfunded lending
commitments
(off-balance sheet)(2)
131
274
24
429
132
285
25
442
134
268
18
420
Total exposure
$ 264 $
396 $
63 $
723 $ 269 $
403 $
62 $
734 $ 266 $
390 $
57 $
713
(1)
Includes drawn loans, overdrafts, bankers’ acceptances and leases.
(2)
Includes unused commitments to lend, letters of credit and financial guarantees.
Portfolio Mix—Geography and Counterparty
Citi’s corporate credit portfolio is diverse across geography
and counterparty. The following table presents the percentages
of this portfolio across North America and the clusters within
International, based on Citi’s internal management geography
(see “Other Risks—Country Risk—Top 25 Country
Exposures” below):
December 31,
2024
September 30,
2024
December 31,
2023
North America
56 %
57 %
56 %
International
44
43
44
Total
100 %
100 %
100 %
International by
cluster
(percentages are based on total Citi)
United Kingdom
11 %
11 %
10 %
Japan, Asia North
and Australia
(JANA)
7
7
7
LATAM
6
6
8
Asia South
5
5
5
Europe
12
11
11
Middle East and
Africa (MEA)
3
3
3
The maintenance of accurate and consistent risk ratings
across the corporate credit portfolio facilitates the comparison
of credit exposure across all lines of business, geographies and
products. Counterparty risk ratings reflect an estimated
probability of default for a counterparty, and internal risk
ratings are derived by leveraging validated statistical models
and scorecards in combination with consideration of factors
specific to the obligor or market, such as management
experience, competitive position, regulatory environment and
commodity prices. Facility risk ratings are assigned that reflect
the probability of default of the obligor and factors that affect
the loss given default of the facility, such as support or
collateral. Internal ratings that generally correspond to BBB
and above are considered investment grade, while those below
are considered non-investment grade.
The following table presents the corporate credit portfolio
by facility risk rating as a percentage of the total corporate
credit portfolio:
Total exposure
December 31,
2024
September 30,
2024
December 31,
2023
AAA/AA/A
49 %
49 %
50 %
BBB
30
33
33
BB/B
19
17
16
CCC or below
2
1
1
Total
100 %
100 %
100 %
Note: Total exposure includes direct outstandings and unfunded lending
commitments.
75
In addition to the obligor and facility risk ratings assigned
to all exposures, Citi may classify exposures in the corporate
credit portfolio. These classifications are consistent with Citi’s
interpretation of the U.S. banking regulators’ definition of
criticized exposures, which may categorize exposures as
special mention, substandard, doubtful or loss.
Risk ratings and classifications are reviewed regularly and
adjusted as appropriate. The credit review process incorporates
quantitative and qualitative factors, including financial and
non-financial disclosures or metrics, idiosyncratic events or
changes to the competitive, regulatory or macroeconomic
environment.
Citi believes the corporate credit portfolio to be
appropriately rated and classified as of December 31, 2024.
Citi has applied management judgment to adjust internal
ratings and classifications of exposures as both the
macroeconomic environment and obligor-specific factors have
changed, particularly where additional stress has been
observed.
As obligor risk ratings are downgraded, the probability of
default increases. Downgrades of obligor risk ratings tend to
result in a higher provision for credit losses. In addition,
appetite per obligor is reduced consistent with the ratings, and
downgrades may result in the purchase of additional credit
derivatives or other risk/structural mitigants to hedge the
incremental credit risk, or may result in Citi seeking to reduce
exposure to an obligor or an industry sector. Citi will continue
to review exposures to ensure that the appropriate probability
of default is incorporated into all risk assessments.
See Note 15 for additional information on Citi’s corporate
credit portfolio.
Portfolio Mix—Industry
Citi’s corporate credit portfolio is diversified by industry. The
following table details the allocation of Citi’s total corporate
credit portfolio by industry:
Total exposure
December 31,
2024
September 30,
2024
December 31,
2023
Transportation and
industrials
20 %
20 %
21 %
Technology, media
and telecom
12
12
12
Banks and finance
companies(1)
12
11
12
Consumer retail
11
12
11
Real estate
11
10
10
Commercial
8
7
8
Residential
3
3
2
Power, chemicals,
metals and mining
9
8
8
Energy and
commodities
6
6
7
Health
5
5
5
Insurance
4
5
4
Public sector
4
4
3
Asset managers
and funds
3
3
3
Financial markets
infrastructure
2
3
3
Other industries
1
1
1
Total
100 %
100 %
100 %
(1)
As of the periods in the table, Citi had less than 1% exposure to
securities firms. See corporate credit portfolio by industry, below.
76
The following table details Citi’s corporate credit portfolio by industry as of December 31, 2024:
In millions of dollars
Total
credit
exposure
Funded(1)
Unfunded
Investment
grade
Non-
criticized
Criticized
performing
Criticized
non-
performing(2)
30 days or
more past
due and
accruing
Net credit
losses
(recoveries)
Credit
derivative
hedges(3)
Transportation and
industrials
$ 144,381 $ 57,166 $
87,215 $
106,336 $ 32,849 $
4,944 $
252 $
73 $
19 $
(7,643)
Autos(4)
50,266
23,427
26,839
40,758
8,591
909
8
3
4
(2,420)
Transportation
26,138
11,416
14,722
19,460
5,792
795
91
3
(7)
(1,165)
Industrials
67,977
22,323
45,654
46,118
18,466
3,240
153
67
22
(4,058)
Technology, media and
telecom
88,797
29,534
59,263
68,615
16,776
3,217
189
68
55
(6,720)
Banks and finance
companies
86,500
56,716
29,784
76,754
8,625
882
239
7
5
(560)
Consumer retail
80,871
32,212
48,659
57,425
19,579
3,676
191
30
43
(5,423)
Real estate
74,481
53,186
21,295
61,430
8,976
3,545
530
6
173
(813)
Commercial
55,810
36,200
19,610
42,960
8,782
3,545
523
6
156
(813)
Residential
18,671
16,986
1,685
18,470
194
—
7
—
17
—
Power, chemicals, metals
and mining
66,669
18,504
48,165
49,383
12,653
4,416
217
35
75
(5,267)
Power
32,185
5,092
27,093
27,204
4,414
417
150
1
48
(2,406)
Chemicals
20,618
7,529
13,089
12,747
5,034
2,779
58
33
28
(2,064)
Metals and mining
13,866
5,883
7,983
9,432
3,205
1,220
9
1
(1)
(797)
Energy and commodities(5)
41,919
11,686
30,233
33,899
7,266
555
199
3
(5)
(3,153)
Health
39,028
8,537
30,491
29,579
8,018
1,411
20
19
13
(3,267)
Insurance
28,317
2,115
26,202
26,734
1,560
17
6
2
—
(4,089)
Public sector
26,022
13,209
12,813
23,344
2,308
360
10
28
7
(678)
Asset managers and funds
19,648
5,258
14,390
17,679
1,788
181
—
—
(4)
(97)
Financial markets
infrastructure
17,368
181
17,187
17,238
130
—
—
—
—
(29)
Securities firms
1,876
590
1,286
1,407
468
1
—
—
—
(20)
Other industries(6)
7,213
4,733
2,480
4,979
2,099
114
21
42
16
(51)
Total
$ 723,090 $ 293,627 $
429,463 $
574,802 $ 123,095 $
23,319 $
1,874 $
313 $
397 $ (37,810)
Non-investment grade
Selected metrics
(1)
Funded excludes loans carried at fair value of $7.8 billion at December 31, 2024.
(2)
Includes non-accrual loan exposures and related criticized unfunded exposures.
(3)
Represents the amount of purchased credit protection in the form of derivatives to economically hedge funded and unfunded exposures. Of the $37.8 billion of
purchased credit protection, $34.8 billion represents the total notional amount of purchased credit derivatives on individual reference entities. The remaining $3
billion represents the first loss tranche of portfolios of purchased credit derivatives with a total notional amount of $22.9 billion, where the protection seller
absorbs the first loss on the referenced loan portfolios.
(4)
Autos total credit exposure includes securitization financing facilities secured by auto loans and leases, extended mainly to the finance company subsidiaries of
global auto manufacturers, bank subsidiaries and independent auto finance companies, of approximately $17.5 billion ($10.5 billion of which was funded exposure
with 100% rated investment grade) as of December 31, 2024.
(5)
In addition to this exposure, Citi has energy-related exposure within the public sector (e.g., energy-related state-owned entities) and the transportation and
industrials sector (e.g., offshore drilling entities) included in the table above. As of December 31, 2024, Citi’s total exposure to these energy-related entities was
approximately $4.4 billion, of which approximately $2.1 billion consisted of direct outstanding funded loans.
(6)
Includes $0.6 billion and $0.1 billion of funded and unfunded exposure at December 31, 2024, respectively, primarily related to commercial credit card
delinquency-managed loans.
Exposure to Commercial Real Estate
As of December 31, 2024 and 2023, Citi’s total credit
exposure to commercial real estate (CRE) was $65 billion and
$66 billion, including $6 billion and $8 billion of exposure
related to office buildings, respectively. This total CRE
exposure consisted of approximately $56 billion and $55
billion, respectively, related to corporate clients, included in
the real estate category in the tables above and below. Total
CRE exposure also includes approximately $9 billion and $11
billion, respectively, related to Wealth clients that is not in the
tables as they are not considered corporate exposures.
In addition, as of December 31, 2024, approximately 78%
of Citi’s total CRE exposure was rated investment grade and
more than 75% was to borrowers in the U.S (compared to
approximately 80% rated investment grade and more than
77% to borrowers in the U.S. as of December 31, 2023).
As of December 31, 2024, the ACLL attributed to the
total funded CRE exposure (including Wealth) was
approximately 1.60%, and there were $574 million of non-
accrual CRE loans. As of December 31, 2023, the ACLL
attributed to the total funded CRE exposure (including Wealth)
was approximately 1.49%, and there were $759 million of
non-accrual CRE loans.
77
The following table details Citi’s corporate credit portfolio by industry as of December 31, 2023:
In millions of dollars
Total credit
exposure
Funded(1)
Unfunded
Investment
grade
Non-
criticized
Criticized
performing
Criticized
non-
performing(2)
30 days or
more past
due and
accruing
Net credit
losses
(recoveries)
Credit
derivative
hedges(3)
Transportation and
industrials
$ 149,429 $
59,917 $
89,512 $ 118,380 $
26,345 $
4,469 $
235 $
125 $
39 $
(7,060)
Autos(4)
49,443
22,843
26,600
43,008
5,376
999
60
7
19
(2,304)
Transportation
28,448
11,996
16,452
21,223
6,208
952
65
3
5
(1,185)
Industrials
71,538
25,078
46,460
54,149
14,761
2,518
110
115
15
(3,571)
Technology, media
and telecom
84,409
29,832
54,577
67,077
13,637
3,212
483
112
56
(5,546)
Banks and finance
companies
83,512
52,569
30,943
74,364
7,768
1,277
103
7
37
(638)
Consumer retail
81,799
33,548
48,251
63,017
15,259
3,342
181
130
57
(5,360)
Real estate
72,827
51,660
21,167
61,226
7,084
3,602
915
69
31
(608)
Commercial
54,843
35,058
19,785
43,340
7,042
3,602
859
69
31
(608)
Residential
17,984
16,602
1,382
17,886
42
—
56
—
—
—
Power, chemicals,
metals and mining
59,572
19,004
40,568
46,551
10,098
2,696
227
36
4
(4,884)
Power
24,535
5,220
19,315
20,967
3,200
209
159
1
4
(2,280)
Chemicals
21,963
8,287
13,676
16,418
3,888
1,613
44
34
1
(2,019)
Metals and mining
13,074
5,497
7,577
9,166
3,010
874
24
1
(1)
(585)
Energy and
commodities(5)
46,290
12,606
33,684
40,081
5,528
543
138
5
(15)
(3,090)
Health
36,230
9,135
27,095
30,099
4,871
1,098
162
16
22
(3,023)
Insurance
27,216
2,390
24,826
25,580
1,607
29
—
7
—
(4,516)
Public sector
24,736
12,621
12,115
21,845
2,399
479
13
36
15
(1,092)
Asset managers and
funds
19,681
4,232
15,449
17,826
1,723
112
20
4
—
(65)
Financial markets
infrastructure
18,705
156
18,549
18,705
—
—
—
—
—
(7)
Securities firms
1,737
734
1,003
870
822
45
—
2
—
(2)
Other industries(6)
6,992
4,480
2,512
5,079
1,629
257
27
45
4
(6)
Total
$ 713,135 $ 292,884 $
420,251 $ 590,700 $
98,770 $
21,161 $
2,504 $
594 $
250 $
(35,897)
Non-investment grade
Selected metrics
(1)
Funded excludes loans carried at fair value of $7.3 billion at December 31, 2023.
(2)
Includes non-accrual loan exposures and related criticized unfunded exposures.
(3)
Represents the amount of purchased credit protection in the form of derivatives to economically hedge funded and unfunded exposures. Of the $35.9 billion of
purchased credit protection, $33.7 billion represents the total notional amount of purchased credit derivatives on individual reference entities. The remaining $2.2
billion represents the first loss tranche of portfolios of purchased credit derivatives with a total notional amount of $16.7 billion, where the protection seller
absorbs the first loss on the referenced loan portfolios.
(4)
Autos total credit exposure includes securitization financing facilities secured by auto loans and leases, extended mainly to the finance company subsidiaries of
global auto manufacturers, bank subsidiaries and independent auto finance companies, of approximately $16.9 billion ($10.6 billion of which was funded exposure
with 100% rated investment grade) as of December 31, 2023.
(5)
In addition to this exposure, Citi has energy-related exposure within the public sector (e.g., energy-related state-owned entities) and the transportation and
industrials sector (e.g., offshore drilling entities) included in the table above. As of December 31, 2023, Citi’s total exposure to these energy-related entities was
approximately $4.9 billion, of which approximately $2.5 billion consisted of direct outstanding funded loans.
(6)
Includes $0.6 billion and $0.1 billion of funded and unfunded exposure at December 31, 2023, respectively, primarily related to commercial credit card
delinquency-managed loans.
78
Credit Risk Mitigation
As part of its overall risk management activities, Citigroup
uses credit derivatives, both partial and full term, and other
risk mitigants to economically hedge portions of the credit risk
in its corporate credit portfolio, in addition to outright asset
sales. In advance of the expiration of partial-term economic
hedges, Citi will determine, among other factors, the economic
feasibility of hedging the remaining life of the instrument. The
results of the mark-to-market and any realized gains or losses
on credit derivatives are reflected primarily in Principal
transactions in the Consolidated Statement of Income.
At December 31, 2024, September 30, 2024 and
December 31, 2023, Banking had economic hedges on the
corporate credit portfolio of $37.8 billion, $39.7 billion and
$35.9 billion, respectively. Citi’s expected credit loss model
used in the calculation of its ACL does not include the
favorable impact of credit derivatives and other mitigants that
are marked-to-market. In addition, the reported amounts of
direct outstandings and unfunded lending commitments in the
tables above do not reflect the impact of these hedging
transactions. The credit protection was economically hedging
underlying Banking corporate credit portfolio exposures with
the following risk rating distribution:
Rating of Hedged Exposure
December 31,
2024
September 30,
2024
December 31,
2023
AAA/AA/A
44 %
44 %
45 %
BBB
45
47
44
BB/B
10
8
10
CCC or below
1
1
1
Total
100 %
100 %
100 %
79
Loan Maturities and Fixed/Variable Pricing of Corporate Loans
In millions of dollars at December 31, 2024
Due within
1 year
Over 1 year
but within
5 years
Over 5 years
but within
15 years
Over
15 years
Total
Corporate loans
In North America offices(1)
Commercial and industrial
$
24,848 $
30,481 $
2,335 $
66 $
57,730
Financial institutions
16,283
24,960
426
146
41,815
Mortgage and real estate(2)
8,495
3,716
4,791
1,409
18,411
Installment and other
14,699
9,664
1,044
122
25,529
Lease financing
166
69
—
—
235
Total
$
64,491 $
68,890 $
8,596 $
1,743 $
143,720
In offices outside North America(1)
Commercial and industrial
$
63,633 $
21,369 $
7,845 $
9 $
92,856
Financial institutions
15,808
8,985
2,333
150
27,276
Mortgage and real estate(2)
3,057
4,202
810
67
8,136
Installment and other
4,530
15,350
3,819
2,101
25,800
Lease financing
3
24
13
—
40
Governments and official institutions
885
746
1,384
615
3,630
Total
$
87,916 $
50,676 $
16,204 $
2,942 $
157,738
Corporate loans, net of unearned income(3)(4) $
152,407 $
119,566 $
24,800 $
4,685 $
301,458
Loans at fixed interest rates(5)
Commercial and industrial
$
4,255 $
1,091 $
16
Financial institutions
1,374
59
146
Mortgage and real estate(2)
1,191
4,725
1,006
Other(6)
3,169
377
122
Lease financing
77
—
—
Total
$
10,066 $
6,252 $
1,290
Loans at floating or adjustable interest
rates(4)
Commercial and industrial
$
47,595 $
9,089 $
59
Financial institutions
32,571
2,700
150
Mortgage and real estate(2)
6,727
876
470
Other(6)
22,591
5,870
2,716
Lease financing
16
13
—
Total
$
109,500 $
18,548 $
3,395
Total fixed/variable pricing of corporate
loans with maturities due after one year, net
of unearned income(3)(4)
$
119,566 $
24,800 $
4,685
(1)
North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America. The classification between offices in North
America and outside North America is based on the domicile of the booking unit. The differences between the domicile of the booking unit and the domicile of the
managing unit are not material.
(2)
Loans secured primarily by real estate.
(3)
Corporate loans are net of unearned income of $(969) million. Unearned income on corporate loans primarily represents loan origination fees, net of certain direct
origination costs, that are deferred and recognized as Interest income over the lives of the related loans.
(4)
Excludes $(72) million of unallocated portfolio-layer cumulative basis adjustments at December 31, 2024.
(5)
Based on contractual terms. Repricing characteristics may effectively be modified from time to time using derivative contracts. See Note 24.
(6)
Other includes installment and other and loans to government and official institutions.
80
CONSUMER CREDIT
Citi's consumer credit risk management framework is designed
for a variety of environments. Underwriting and portfolio
management policies are calibrated based on risk-return trade-
offs by product and segment and changes are made based on
performance against benchmarks as well as environmental
stress. As warranted, Citi adjusts underwriting criteria to
address consumer credit risks and macroeconomic challenges
and uncertainties.
USPB provides credit cards, consumer mortgages,
personal loans, small business banking and retail banking, and
Wealth offers wealth management lending and other products
globally that range from the affluent to ultra-high net worth
customer segments through the Private Bank, Wealth at Work
and Citigold. USPB’s retail banking products include a
generally prime portfolio built through well-defined lending
parameters within Citi’s risk appetite framework.
All Other—Legacy Franchises also provides such
products in its remaining markets through Mexico Consumer
and Asia Consumer (Korea, Poland and Russia).
Consumer Credit Portfolio
The following table presents Citi’s quarterly end-of-period consumer loans(1):
In billions of dollars
4Q23
1Q24
2Q24
3Q24
4Q24
Wealth(2)(3)
Mortgages(4)
$
89.9 $
90.2 $
92.0 $
91.5 $
89.0
Margin lending(5)
29.4
27.3
27.6
28.1
29.4
Personal, small business and other(6)
27.1
26.7
25.9
26.4
24.1
Cards
5.0
4.7
4.9
5.0
5.0
Total
$
151.4 $
148.9 $
150.4 $
151.0 $
147.5
USPB
Branded Cards
$
111.1 $
108.0 $
111.8 $
112.1 $
117.3
Retail Services
53.6
50.8
51.7
51.6
53.8
Retail Banking
44.4
45.6
46.2
49.4
50.6
Mortgages(4)
39.9
41.0
41.4
44.4
45.5
Personal, small business and other
4.5
4.6
4.8
5.0
5.1
Total
$
209.1 $
204.4 $
209.7 $
213.1 $
221.7
All Other—Legacy Franchises
Mexico Consumer (excludes Mexico SBMM)
$
18.7 $
19.6 $
18.2 $
17.4 $
17.2
Asia Consumer(7)
7.4
6.5
5.6
5.5
4.7
Legacy Holdings Assets(8)
2.6
2.4
2.2
2.2
2.0
Total
$
28.7 $
28.5 $
26.0 $
25.1 $
23.9
Total consumer loans
$
389.2 $
381.8 $
386.1 $
389.2 $
393.1
(1)
End-of-period loans include interest and fees on credit cards.
(2)
Consists of $98.0 billion, $99.8 billion, $100.9 billion, $100.0 billion and $101.6 billion of loans in North America as of December 31, 2024, September 30, 2024,
June 30, 2024, March 31, 2024 and December 31, 2023, respectively. For additional information on the credit quality of the Wealth portfolio, see Note 15.
(3)
Consists of $49.5 billion, $51.2 billion, $49.5 billion, $48.9 billion and $49.8 billion of loans outside North America as of December 31, 2024, September 30,
2024, June 30, 2024, March 31, 2024 and December 31, 2023, respectively.
(4)
See Note 15 for details on loan-to-value ratios for the portfolios and FICO scores for the U.S. portfolio.
(5)
At December 31, 2024, includes approximately $24 billion of classifiably managed loans fully collateralized by eligible financial assets and securities that have
experienced very low historical net credit losses. Approximately 63% of the classifiably managed portion of these loans is investment grade.
(6)
At December 31, 2024, includes approximately $20 billion of classifiably managed loans. Approximately 83% of these loans are fully collateralized (consisting
primarily of marketable investment securities, commercial real estate and limited partner capital commitments in private equity) and have experienced very low
historical net credit losses. As discussed below, approximately 83% of the classifiably managed portion of these loans is investment grade.
(7)
Asia Consumer loan balances, reported within All Other—Legacy Franchises, include the three remaining Asia Consumer loan portfolios—Korea, Poland and
Russia—as well as China until the completion of the sales of substantially all portfolios in July 2024.
(8)
Primarily consists of certain North America consumer mortgages.
For information on changes to Citi’s consumer loans, see
“Credit Risk—Loans” above.
81
Consumer Credit Trends
U.S. Personal Banking
As indicated above, USPB provides credit card products
through Branded Cards and Retail Services, and mortgages
and home equity, small business and personal consumer loans
through Citi’s Retail Banking network. Retail Banking is
concentrated in six major U.S. metropolitan areas. USPB also
provides mortgages through correspondent channels.
As of December 31, 2024, approximately 77% of USPB
EOP loans consisted of Branded Cards and Retail Services
credit card loans, which generally drives the overall credit
performance of USPB, as Branded Cards and Retail Services
net credit losses represented approximately 95% of total USPB
net credit losses for the fourth quarter of 2024. As of
December 31, 2024, Branded Cards and Retail Services
represented 69% and 31%, respectively, of EOP cards loans in
USPB.
As presented in the chart above, the fourth quarter of 2024
net credit loss rate in USPB was broadly stable quarter-over-
quarter. The net credit loss rate increased year-over-year,
primarily reflecting the continued maturation of multiple cards
loan vintages originated in recent years. The maturation was
delayed by unprecedented levels of government stimulus
during the pandemic. In addition, the increase was driven by
macroeconomic pressures related to the elevated inflationary
and interest rate environment impacting both cards portfolios,
with lower FICO band customers primarily driving the
increase.
The 90+ days past due delinquency rate increased quarter-
over-quarter, primarily driven by seasonality, and increased
year-over-year, primarily reflecting the continued maturation
of multiple cards loan vintages originated in recent years. The
maturation was delayed by unprecedented levels of
government stimulus during the pandemic. In addition, the
increase was driven by macroeconomic pressures related to the
elevated inflationary and interest rate environment impacting
both cards portfolios, with lower FICO band customers
primarily driving the increase.
Branded Cards
USPB’s Branded Cards portfolio consists of both
proprietary Citi branded cards portfolios (Value, Rewards and
Cash) and co-branded cards portfolios (including Costco and
American Airlines). Citi’s Branded Cards portfolio benefits
from a diverse combination of products. Citi’s proprietary
cards provide customers with a suite of products with rewards,
cash rebates and lending solutions, while co-branded cards
provide significant affinity benefits through partnerships with
large-scale partners across the airline, retail and telecom
sectors.
As presented in the chart above, the fourth quarter of 2024
net credit loss rate in Branded Cards was broadly stable
quarter-over-quarter. The net credit loss rate increased year-
over-year, primarily reflecting the continued maturation of
multiple cards loan vintages originated in recent years. The
maturation was delayed by unprecedented levels of
government stimulus during the pandemic. In addition, the
increase was driven by macroeconomic pressures related to the
elevated inflationary and interest rate environment, with lower
FICO band customers primarily driving the increase.
The 90+ days past due delinquency rate increased quarter-
over-quarter, primarily driven by seasonality, and increased
year-over-year, primarily reflecting the continued maturation
of multiple cards loan vintages originated in recent years. The
maturation was delayed by unprecedented levels of
government stimulus during the pandemic. In addition, the
increase was driven by macroeconomic pressures related to the
elevated inflationary and interest rate environment, with lower
FICO band customers primarily driving the increase.
82
Retail Services
USPB’s Retail Services partners directly with more than
20 retailers and dealers to offer private label and co-branded
cards. Retail Services’ target market focuses on select industry
segments such as home improvement, specialty retail,
consumer electronics and fuel. Retail Services continually
evaluates opportunities to add partners within target industries
that have strong loyalty, lending or payment programs and
growth potential.
As presented in the chart above, the fourth quarter of 2024
net credit loss rate in Retail Services increased quarter-over-
quarter, primarily driven by seasonality, and increased year-
over-year, primarily reflecting the continued maturation of
multiple cards loan vintages originated in recent years. The
maturation was delayed by unprecedented levels of
government stimulus during the pandemic. In addition, the
increase was driven by macroeconomic pressures related to the
elevated inflationary and interest rate environment, with lower
FICO band customers primarily driving the increase.
The 90+ days past due delinquency rate was broadly
stable quarter-over-quarter and increased year-over-year,
primarily reflecting the continued maturation of multiple cards
loan vintages originated in recent years. The maturation was
delayed by unprecedented levels of government stimulus
during the pandemic. In addition, the increase was driven by
macroeconomic pressures related to the elevated inflationary
and interest rate environment, with lower FICO band
customers primarily driving the increase.
For additional information on cost of credit, loan
delinquency and other information for Citi’s cards portfolios,
see each respective business’s results of operations above and
Note 15.
Retail Banking
USPB’s Retail Banking portfolio consists primarily of
consumer mortgages (including home equity) and unsecured
lending products, such as small business loans and personal
loans. The portfolio is generally delinquency managed, where
Citi evaluates credit risk based on FICO scores, delinquencies
and the value of underlying collateral. The consumer
mortgages in this portfolio have historically been extended to
high credit quality customers, generally with loan-to-value
ratios that are less than or equal to 80% on first and second
mortgages. For additional information, see “Loan-to-Value
(LTV) Ratios” in Note 15.
As presented in the chart above, the fourth quarter of 2024
net credit loss rate in Retail Banking increased quarter-over-
quarter and year-over-year, primarily driven by consumer
overdraft loans.
The 90+ days past due delinquency rate was largely
unchanged quarter-over-quarter and decreased year-over-year.
The decrease was primarily driven by lower delinquencies in
consumer mortgages.
Wealth
Wealth provides consumer mortgages, margin lending,
credit cards and other lending products to customer segments
that range from affluent to ultra-high net worth through the
Private Bank, Wealth at Work and Citigold businesses. These
customer segments represent a target market that is
characterized by historically low default rates and
delinquencies and includes loans that are delinquency
managed or classifiably managed. The delinquency-managed
portfolio consists primarily of mortgages, margin lending and
credit cards.
83
As of December 31, 2024, approximately $43 billion, or
29%, of the portfolios were classifiably managed and
primarily consisted of mortgage loans, margin loans, personal
and small business loans and other lending programs. These
classifiably managed loans are primarily evaluated for credit
risk based on their internal risk rating, of which 72% were
rated investment grade. While the 90+ days past due
delinquency rates shown in the chart above were calculated
only for the delinquency-managed portfolio, the net credit loss
rates presented were calculated using net credit losses for both
the delinquency and classifiably managed portfolios.
As presented in the chart above, the fourth quarter of 2024
net credit loss rate in Wealth was broadly stable quarter-over-
quarter and year-over-year. The 90+ days past due
delinquency rate increased quarter-over-quarter and year-over-
year, primarily driven by consumer mortgages. The low net
credit loss and the 90+ days past due delinquency rates
continued to reflect the strong credit profiles of the portfolios.
Mexico Consumer
Mexico Consumer operates in Mexico through Banamex
and provides credit cards, consumer mortgages and small
business and personal loans. Mexico Consumer serves a mass-
market segment in Mexico and focuses on developing
multiproduct relationships with customers.
As of December 31, 2024, approximately 40% of Mexico
Consumer EOP loans consisted of credit card loans, which
generally drives the overall credit performance of Mexico
Consumer, as the cards net credit losses represented
approximately 60% of total Mexico Consumer net credit
losses for the fourth quarter of 2024.
As presented in the chart above, the fourth quarter of 2024
net credit loss rate and the 90+ days past due delinquency rate
in Mexico Consumer increased quarter-over-quarter and year-
over-year, primarily driven by the ongoing normalization of
loss and delinquency rates from post-pandemic lows.
For additional details on cost of credit, loan delinquency
and other information for Citi’s consumer loan portfolios, see
each respective business’s results of operations above and
Note 15.
U.S. Cards FICO Distribution
The following tables present the current FICO score
distributions for Citi’s Branded Cards and Retail Services
portfolios based on end-of-period receivables. FICO scores are
updated as they become available.
Branded Cards
FICO distribution(1)
Dec. 31,
2024
Sept. 30,
2024
Dec. 31,
2023
≥ 740
56 %
55 %
57 %
660–739
33
34
33
< 660
11
11
10
Total
100 %
100 %
100 %
Retail Services
FICO distribution(1)
Dec. 31,
2024
Sept. 30,
2024
Dec. 31,
2023
≥ 740
36 %
34 %
36 %
660–739
41
42
41
< 660
23
24
23
Total
100 %
100 %
100 %
(1)
Excludes immaterial balances for Canada and for customers for which
no FICO scores are available.
The FICO distribution of both Branded Cards and Retail
Services portfolios was broadly stable quarter-over-quarter
and year-over-year. The FICO distribution continued to reflect
the strong underlying credit quality of the portfolios. See Note
15 for additional information on FICO scores.
84
Additional Consumer Credit Details
Consumer Loan Delinquencies Amounts and Ratios
EOP
loans(1)
90+ days past due(2)
30–89 days past due(2)
December
31,
December 31,
December 31,
In millions of dollars,
except EOP loan amounts in billions
2024
2024
2023
2022
2024
2023
2022
Wealth delinquency-managed
loans(3)
$
104.1 $
260
$
191
$
186
$
242
$
312
$
317
Ratio
0.25 %
0.18 %
0.19 %
0.23 %
0.30 %
0.32 %
Wealth classifiably managed
loans(4)
$
43.4
N/A
N/A
N/A
N/A
N/A
N/A
USPB(5)(6)
Total
$
221.7 $
2,871
$
2,635
$
1,578
$
2,604
$
2,563
$
1,720
Ratio
1.30 %
1.26 %
0.84 %
1.18 %
1.23 %
0.92 %
Cards(6)
Total
171.1
2,705
2,461
1,415
2,333
2,293
1,511
Ratio
1.58 %
1.49 %
0.94 %
1.36 %
1.39 %
1.00 %
Branded Cards
117.3
1,383
1,194
629
1,210
1,143
693
Ratio
1.18 %
1.07 %
0.63 %
1.03 %
1.03 %
0.69 %
Retail Services
53.8
1,322
1,267
786
1,123
1,150
818
Ratio
2.46 %
2.36 %
1.56 %
2.09 %
2.15 %
1.62 %
Retail Banking(5)
50.6
166
174
163
271
270
209
Ratio
0.33 %
0.40 %
0.45 %
0.54 %
0.62 %
0.57 %
All Other
Total
$
23.9 $
341
$
407
$
389
$
329
$
384
$
335
Ratio
1.44 %
1.43 %
1.26 %
1.39 %
1.35 %
1.08 %
Mexico Consumer
17.2
246
252
190
242
252
186
Ratio
1.43 %
1.35 %
1.28 %
1.41 %
1.35 %
1.26 %
Asia Consumer(7)(8)
4.7
23
51
49
27
59
70
Ratio
0.49 %
0.69 %
0.37 %
0.57 %
0.80 %
0.53 %
Legacy Holdings Assets
(consumer)(9)
2.0
72
104
150
60
73
79
Ratio
4.00 %
4.33 %
5.36 %
3.33 %
3.04 %
2.82 %
Total Citigroup consumer
$
393.1 $
3,472
$
3,233
$
2,153
$
3,175
$
3,259
$
2,372
Ratio
0.99 %
0.94 %
0.68 %
0.91 %
0.95 %
0.75 %
(1)
End-of-period (EOP) loans include interest and fees on credit cards.
(2)
The ratios of 90+ days past due and 30–89 days past due are calculated based on EOP loans, net of unearned income.
(3)
Excludes EOP classifiably managed Private Bank loans. These loans are not included in the delinquency numerator, denominator and ratios.
(4)
These loans are evaluated for non-accrual status and write-off primarily based on their internal risk classification and not solely on their delinquency status, and,
therefore, delinquency metrics are excluded from this table. As of December 31, 2024, 2023 and 2022, 72%, 85% and 96% of Wealth classifiably managed loans
were rated investment grade. For additional information on the credit quality of the Wealth portfolio, including classifiably managed portfolios, see “Consumer
Credit Trends” above.
(5)
The 90+ days past due and 30–89 days past due and related ratios for Retail Banking exclude loans guaranteed by U.S. government-sponsored agencies since the
potential risk of loss predominantly resides with the U.S. government-sponsored agencies. The amounts excluded for loans 90+ days past due and (EOP loans)
were $69 million ($0.5 billion), $63 million ($0.5 billion) and $89 million ($0.6 billion) at December 31, 2024, 2023 and 2022, respectively. The amounts
excluded for loans 30–89 days past due (the 30–89 days past due EOP loans have the same adjustments as the 90+ days past due EOP loans) were $66 million,
$73 million and $70 million at December 31, 2024, 2023 and 2022, respectively. The EOP loans in the table include the guaranteed loans.
(6)
The 90+ days past due balances for Branded Cards and Retail Services are generally still accruing interest. Citi’s policy is generally to accrue interest on credit
card loans until 180 days past due, unless notification of bankruptcy filing has been received earlier.
(7)
Asia Consumer includes delinquencies and loans in Poland and Russia for all periods presented.
(8)
Citi has entered into agreements to sell certain Asia Consumer banking businesses. Accordingly, the loans of these businesses have been reclassified as HFS in
Other assets on the Consolidated Balance Sheet, and, hence, the loans and related delinquencies and ratios are not included in this table. The most recent
reclassifications commenced as follows: Taiwan and Indonesia in the first quarter of 2022; Taiwan closed in the third quarter of 2023 and Indonesia closed in the
fourth quarter of 2023. See Note 2.
85
(9)
The 90+ days past due and 30–89 days past due and related ratios exclude U.S. mortgage loans that are primarily related to U.S. mortgages guaranteed by U.S.
government-sponsored agencies since the potential risk of loss predominantly resides with the U.S. agencies. The amounts excluded for 90+ days past due and
(EOP loans) were $66 million ($0.2 billion), $67 million ($0.2 billion) and $90 million ($0.3 billion) at December 31, 2024, 2023 and 2022, respectively. The
amounts excluded for loans 30–89 days past due (the 30–89 days past due EOP loans have the same adjustments as the 90+ days past due EOP loans) were $34
million, $36 million and $37 million at December 31, 2024, 2023 and 2022, respectively. The EOP loans in the table include the guaranteed loans.
N/A Not applicable
Consumer Loan Net Credit Losses (NCLs) and Ratios
Average
loans(1)
Net credit losses(2)
In millions of dollars, except average loan amounts in billions
2024
2024
2023
2022
Wealth
$
149.4 $
121
$
98
$
103
Ratio
0.08 %
0.07 %
0.07 %
USPB
Total
$
209.2 $
7,579
$
5,234
$
2,918
Ratio
3.62 %
2.72 %
1.71 %
Cards
Total
161.8
7,245
4,981
2,640
Ratio
4.48 %
3.29 %
1.95 %
Branded Cards
110.3
4,015
2,664
1,384
Ratio
3.64 %
2.62 %
1.54 %
Retail Services
51.5
3,230
2,317
1,256
Ratio
6.27 %
4.64 %
2.74 %
Retail Banking
47.4
334
253
278
Ratio
0.70 %
0.62 %
0.79 %
All Other—Legacy Franchises (managed basis)(3)
Total
$
26.3 $
896
$
861
$
746
Ratio
3.41 %
2.94 %
2.16 %
Mexico Consumer
18.3
828
682
476
Ratio
4.52 %
4.01 %
3.50 %
Asia Consumer (managed basis)(3)(4)(5)
5.9
67
198
316
Ratio
1.14 %
2.08 %
1.82 %
Legacy Holdings Assets (consumer)
2.1
1
(19)
(46)
Ratio
0.05 %
(0.68) %
(1.27) %
Reconciling Items(3)
$
7
$
(6)
$
(156)
Total Citigroup
$
384.9 $
8,603
$
6,187
$
3,611
Ratio
2.24 %
1.66 %
1.02 %
(1)
Average loans include interest and fees on credit cards.
(2)
The ratios of net credit losses are calculated based on average loans, net of unearned income.
(3)
All Other (managed basis) excludes divestiture-related impacts (Reconciling Items) related to (i) Citi’s divestitures of its Asia Consumer businesses and (ii) the
planned IPO of Mexico Consumer/SBMM within Legacy Franchises. The Reconciling Items are fully reflected in the various line items in Citi’s Consolidated
Statement of Income. See “All Other—Divestiture-Related Impacts (Reconciling Items)” above.
(4)
Asia Consumer also includes NCLs and average loans in Poland and Russia for all periods presented.
(5)
Approximately $0 million, $25 million and $155 million in NCLs relating to certain Asia Consumer businesses classified as held-for-sale in Other assets and
Other liabilities on the Consolidated Balance Sheet were recorded as a reduction in revenue (Other revenue) in 2024, 2023 and 2022, respectively. Accordingly,
these NCLs are not included in this table. See footnote 3 to this table.
86
Loan Maturities and Fixed/Variable Pricing of Consumer Loans
Loan Maturities
In millions of dollars at December 31, 2024
Due within
1 year
Greater than
1 year
but within
5 years
Greater than
5 years
but within 15
years
Greater than
15 years
Total
In North America offices
Residential first mortgages
$
2 $
272 $
2,738 $
111,581 $
114,593
Home equity loans
6
15
1,247
1,873
3,141
Credit cards(1)
168,789
2,270
—
—
171,059
Personal, small business and other
17,844
13,853
1,288
170
33,155
Total
$
186,641 $
16,410 $
5,273 $
113,624 $
321,948
In offices outside North America
Residential mortgages
$
165 $
215 $
3,899 $
20,177 $
24,456
Credit cards(1)
12,895
32
—
—
12,927
Personal, small business and other
26,932
6,440
230
393
33,995
Total
$
39,992 $
6,687 $
4,129 $
20,570 $
71,378
Total Consumer
$
226,633 $
23,097 $
9,402 $
134,194 $
393,326
(1)
Credit card loans with maturities greater than one year represent loan modifications to borrowers experiencing financial difficulty and are at fixed interest rates.
Fixed/Variable Pricing
In millions of dollars at December 31, 2024
Due within
1 year
Greater than
1 year
but within
5 years
Greater than
5 years
but within 15
years
Greater than
15 years
Total
Loans at fixed interest rates
Residential first mortgages
$
52 $
344 $
3,887 $
69,660 $
73,943
Home equity loans
4
11
220
203
438
Credit cards(1)
49,549
2,302
—
—
51,851
Personal, small business and other
13,370
7,769
286
141
21,566
Total
$
62,975 $
10,426 $
4,393 $
70,004 $
147,798
Loans at floating or adjustable interest rates
Residential first mortgages
$
115 $
143 $
2,750 $
62,098 $
65,106
Home equity loans
2
4
1,027
1,670
2,703
Credit cards(1)
132,135
—
—
—
132,135
Personal, small business and other
31,406
12,524
1,232
422
45,584
Total
$
163,658 $
12,671 $
5,009 $
64,190 $
245,528
Total Consumer
$
226,633 $
23,097 $
9,402 $
134,194 $
393,326
(1)
Credit card loans with maturities greater than one year represent loan modifications to borrowers experiencing financial difficulty and are at fixed interest rates.
87
ADDITIONAL CONSUMER AND CORPORATE CREDIT DETAILS
Loans Outstanding
December 31,
In millions of dollars
2024
2023
2022
2021
2020
Consumer loans
In North America offices(1)
Residential first mortgages(2)
$
114,593
$
108,711
$
96,039
$
83,361
$
83,956
Home equity loans(2)
3,141
3,592
4,580
5,745
7,890
Credit cards
171,059
164,720
150,643
133,868
130,385
Personal, small business and other
33,155
36,135
37,752
40,713
39,259
Total
$
321,948
$
313,158
$
289,014
$
263,687
$
261,490
In offices outside North America(1)
Residential mortgages(2)
$
24,456
$
26,426
$
28,114
$
37,889
$
42,817
Credit cards
12,927
14,233
12,955
17,808
22,692
Personal, small business and other
33,995
35,380
37,984
57,150
59,475
Total
$
71,378
$
76,039
$
79,053
$
112,847
$
124,984
Consumer loans, net of unearned income, excluding
portfolio-layer cumulative basis adjustments(3)
$
393,326
$
389,197
$
368,067
$
376,534
$
386,474
Unallocated portfolio-layer cumulative basis adjustments
$
(224)
$
—
$
—
$
—
$
—
Consumer loans, net of unearned income(3)
$
393,102
$
389,197
$
368,067
$
376,534
$
386,474
Corporate loans
In North America offices(1)
Commercial and industrial
$
57,730
$
61,008
$
56,176
$
48,364
$
53,930
Financial institutions
41,815
39,393
43,399
49,804
39,390
Mortgage and real estate(2)
18,411
17,813
17,829
15,965
16,522
Installment and other(4)
25,529
23,335
23,767
20,143
17,362
Lease financing
235
227
308
415
673
Total
$
143,720
$
141,776
$
141,479
$
134,691
$
127,877
In offices outside North America(1)
Commercial and industrial
$
92,856
$
93,402
$
93,967
$
102,735
$
103,234
Financial institutions
27,276
26,143
21,931
22,158
25,111
Mortgage and real estate(2)
8,136
7,197
4,179
4,374
5,277
Installment and other(4)
25,800
27,907
23,347
22,812
24,034
Lease financing
40
48
46
40
65
Governments and official institutions
3,630
3,599
4,205
4,423
3,811
Total
$
157,738
$
158,296
$
147,675
$
156,542
$
161,532
Corporate loans, net of unearned income, excluding
portfolio-layer cumulative basis adjustments(5)
$
301,458
$
300,072
$
289,154
$
291,233
$
289,409
Unallocated portfolio-layer cumulative basis adjustments
$
(72)
$
93
$
—
$
—
$
—
Corporate loans, net of unearned income(5)
$
301,386
$
300,165
$
289,154
$
291,233
$
289,409
Total loans—net of unearned income
$
694,488
$
689,362
$
657,221
$
667,767
$
675,883
Allowance for credit losses on loans (ACLL)
(18,574)
(18,145)
(16,974)
(16,455)
(24,956)
Total loans—net of unearned income and ACLL
$
675,914
$
671,217
$
640,247
$
651,312
$
650,927
ACLL as a percentage of total loans—
net of unearned income(6)
2.71 %
2.66 %
2.60 %
2.49 %
3.73 %
ACLL for consumer loan losses as a percentage of
total consumer loans—net of unearned income(6)
4.08 %
3.97 %
3.84 %
3.73 %
5.22 %
ACLL for corporate loan losses as a percentage of
total corporate loans—net of unearned income(6)
0.87 %
0.93 %
1.01 %
0.85 %
1.69 %
88
(1)
North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America. The classification of corporate loans between
offices in North America and outside North America is based on the domicile of the booking unit. The difference between the domicile of the booking unit and the
domicile of the managing unit is not material.
(2)
Loans secured primarily by real estate.
(3)
Consumer loans are net of unearned income of $889 million, $802 million, $712 million, $629 million and $692 million at December 31, 2024, 2023, 2022, 2021
and 2020, respectively. Unearned income on consumer loans primarily represents loan origination fees, net of certain direct origination costs, that are deferred and
recognized as Interest income over the lives of the related loans.
(4)
Installment and other includes loans to SPEs and TTS commercial cards.
(5)
Corporate loans include Mexico SBMM loans and are net of unearned income of $(969) million, $(917) million, $(797) million, $(770) million and $(787) million
at December 31, 2024, 2023, 2022, 2021 and 2020, respectively. Unearned income on corporate loans primarily represents loan origination fees, net of certain
direct origination costs, that are deferred and recognized as Interest income over the lives of the related loans.
(6)
Because loans carried at fair value do not have an ACLL, they are excluded from the ACLL ratio calculation.
Details of Credit Loss Experience
In millions of dollars
2024
2023
2022
2021
2020
Allowance for credit losses on loans (ACLL) at beginning of year $
18,145
$
16,974
$
16,455
$
24,956
$
12,783
Adjustments to opening balance:
Financial instruments—TDRs and vintage disclosures(1)
—
(352)
—
—
—
Financial instruments—credit losses (CECL)(2)
—
—
—
—
4,201
Variable post-charge-off third-party collection costs
—
—
—
—
(443)
Adjusted ACLL at beginning of year
$
18,145
$
16,622
$
16,455
$
24,956
$
16,541
Provision for credit losses on loans (PCLL)
Consumer
$
9,459
$
7,665
$
4,128
$
(1,159)
$
12,222
Corporate
267
121
617
(1,944)
3,700
Total
$
9,726
$
7,786
$
4,745
$
(3,103)
$
15,922
Gross credit losses on loans
Consumer
In U.S. offices
$
8,989
$
6,339
$
3,944
$
4,076
$
6,141
In offices outside the U.S.
1,212
1,214
934
2,144
2,146
Corporate
Commercial and industrial, and other
In U.S. offices
149
129
110
228
466
In offices outside the U.S.
170
119
81
259
409
Loans to financial institutions
In U.S. offices
—
4
—
1
14
In offices outside the U.S.
10
36
80
1
12
Mortgage and real estate
In U.S. offices
144
31
—
10
71
In offices outside the U.S.
20
9
7
1
4
Total
$
10,694
$
7,881
$
5,156
$
6,720
$
9,263
Gross recoveries on loans
Consumer
In U.S. offices
$
1,406
$
1,124
$
1,045
$
1,215
$
1,094
In offices outside the U.S.
192
242
222
496
482
Corporate
Commercial and industrial, and other
In U.S. offices
51
38
44
57
34
In offices outside the U.S.
35
37
46
54
27
Loans to financial institutions
In U.S. offices
5
—
6
2
—
In offices outside the U.S.
4
—
3
1
14
Mortgage and real estate
In U.S. offices
—
—
—
—
—
In offices outside the U.S.
1
3
1
—
1
89
Total
$
1,694
$
1,444
$
1,367
$
1,825
$
1,652
Net credit losses on loans (NCLs)
In U.S. offices
$
7,820
$
5,341
$
2,959
$
3,041
$
5,564
In offices outside the U.S.
1,180
1,096
830
1,854
2,047
Total
$
9,000
$
6,437
$
3,789
$
4,895
$
7,611
Other—net(3)(4)(5)(6)(7)(8)
$
(297)
$
174
$
(437)
$
(503)
$
104
Allowance for credit losses on loans (ACLL) at end of year
$
18,574
$
18,145
$
16,974
$
16,455
$
24,956
ACLL as a percentage of EOP loans(9)
2.71 %
2.66 %
2.60 %
2.49 %
3.73 %
Allowance for credit losses on unfunded lending commitments
(ACLUC)(10)
$
1,601
$
1,728
$
2,151
$
1,871
$
2,655
Total ACLL and ACLUC
$
20,175
$
19,873
$
19,125
$
18,326
$
27,611
Net consumer credit losses on loans
$
8,603
$
6,187
$
3,611
$
4,509
$
6,711
As a percentage of average consumer loans
2.24 %
1.66 %
1.02 %
1.20 %
1.77 %
Net corporate credit losses on loans
$
397
$
250
$
178
$
386
$
900
As a percentage of average corporate loans
0.13 %
0.09 %
0.06 %
0.13 %
0.29 %
ACLL by type at end of year(11)
Consumer
$
16,018
$
15,431
$
14,119
$
14,040
$
20,180
Corporate
2,556
2,714
2,855
2,415
4,776
Total
$
18,574
$
18,145
$
16,974
$
16,455
$
24,956
(1)
On January 1, 2023, Citi adopted Accounting Standards Update (ASU) 2022-02, Financial Instruments—Credit Losses (Topic 326): TDRs and Vintage
Disclosures. The ASU eliminated the accounting and disclosure requirements for TDRs, including the requirement to measure the ACLL for TDRs using a
discounted cash flow (DCF) approach. On January 1, 2023, Citi recorded a $352 million decrease in the Allowance for loan losses, along with a $290 million
after-tax increase to Retained earnings. See Note 1.
(2)
On January 1, 2020, Citi adopted Accounting Standards Codification (ASC) 326, Financial Instruments—Credit Losses (CECL). The ASC introduces a new credit
loss methodology requiring earlier recognition of credit losses while also providing additional disclosure about credit risk. On January 1, 2020, Citi recorded a
$4.1 billion, or an approximate 29%, pretax increase in the Allowance for credit losses, along with a $3.1 billion after-tax decrease in Retained earnings and a
deferred tax asset increase of $1.0 billion. This transition impact reflects (i) a $4.9 billion build to the consumer ACL due to longer estimated tenors than under the
incurred loss methodology under prior U.S. GAAP, net of recoveries, and (ii) a $0.8 billion decrease to the corporate ACL due to shorter remaining tenors,
incorporation of recoveries and use of more specific historical loss data based on an increase in portfolio segmentation across industries and geographies.
(3)
Includes all adjustments to the allowance for credit losses, such as changes in the allowance from acquisitions, dispositions, securitizations, FX translation,
purchase accounting adjustments, etc.
(4)
2024 includes an approximate $300 million decrease related to FX translation, as well as an initial allowance for credit losses on newly purchased credit-
deteriorated assets during the year.
(5)
2023 includes an approximate $175 million increase related to FX translation.
(6)
2022 includes an approximate $350 million reclass related to the announced sales of Citi’s consumer banking businesses in Thailand, India, Malaysia, Taiwan,
Indonesia, Bahrain and Vietnam. Also includes a decrease of approximately $100 million related to FX translation.
(7)
2021 includes an approximate $280 million reclass related to Citi’s agreement to sell its Australia consumer banking business and an approximate $90 million
reclass related to Citi’s agreement to sell its Philippines consumer banking business. Those ACLL were reclassified to Other assets during 2021. 2021 also
includes a decrease of approximately $134 million related to FX translation.
(8)
2020 includes reductions of approximately $4 million related to the transfer to HFS of various real estate loan portfolios. In addition, 2020 includes an increase of
approximately $97 million related to FX translation.
(9)
December 31, 2024, 2023, 2022, 2021 and 2020 exclude $8.0 billion, $7.6 billion, $5.4 billion, $6.1 billion and $6.9 billion, respectively, of loans that are carried
at fair value.
(10) Represents additional credit reserves recorded as Other liabilities on the Consolidated Balance Sheet.
(11) The ACLL represents management’s estimate of expected credit losses in the portfolio and troubled debt restructurings. See “Significant Accounting Policies and
Significant Estimates” below. Attribution of the allowance is made for analytical purposes only and is available to absorb probable credit losses inherent in the
overall portfolio.
90
Allowance for Credit Losses on Loans (ACLL)
The following tables detail information on Citi’s ACLL, loans and coverage ratios:
December 31, 2024
In billions of dollars
ACLL
EOP loans, net of
unearned income
ACLL as a
% of EOP loans(1)
Consumer
North America cards(2)
$
13.6 $
171.1
7.9 %
North America mortgages(3)
0.1
117.2
0.1
North America other(3)
0.7
33.2
2.1
International cards
0.9
12.9
7.0
International other(3)
0.7
58.4
1.2
Total(1)
$
16.0 $
392.8
4.1 %
Corporate(4)
Commercial and industrial
$
1.3 $
148.7
0.9 %
Financial institutions
0.4
68.4
0.6
Mortgage and real estate(4)
0.7
26.4
2.7
Installment and other
0.2
50.1
0.4
Total(1)
$
2.6 $
293.6
0.9 %
Loans at fair value(1)
N/A $
8.0
N/A
Total Citigroup
$
18.6 $
694.5
2.7 %
December 31, 2023
In billions of dollars
ACLL
EOP loans, net of
unearned income
ACLL as a
% of EOP loans(1)
Consumer
North America cards(2)
$
12.6 $
164.7
7.7 %
North America mortgages(3)
0.2
112.0
0.2
North America other(3)
0.7
36.2
1.9
International cards
0.9
14.2
6.3
International other(3)
1.0
61.8
1.6
Total(1)
$
15.4 $
388.9
4.0 %
Corporate(4)
Commercial and industrial
$
1.7 $
151.5
1.1 %
Financial institutions
0.3
65.1
0.5
Mortgage and real estate(4)
0.6
24.9
2.4
Installment and other
0.1
51.4
0.2
Total(1)
$
2.7 $
292.9
0.9 %
Loans at fair value(1)
N/A $
7.6
N/A
Total Citigroup
$
18.1 $
689.4
2.7 %
(1)
Excludes loans carried at fair value, since they do not have an ACLL and are excluded from the ACLL ratio calculation.
(2)
Includes both Branded Cards and Retail Services. As of December 31, 2024, the $13.6 billion of ACLL represented approximately 22 months of coincident net
credit loss coverage (based on 4Q24 NCLs). As of December 31, 2024, Branded Cards ACLL as a percentage of EOP loans was 6.4% and Retail Services ACLL
as a percentage of EOP loans was 11.3%. As of December 31, 2023, the $12.6 billion of ACLL represented approximately 25 months of coincident net credit loss
coverage (based on 4Q23 NCLs). As of December 31, 2023, Branded Cards ACLL as a percentage of EOP loans was 6.0% and Retail Services ACLL as a
percentage of EOP loans was 11.1%.
(3)
Includes residential mortgages, retail loans and personal, small business and other loans, including those extended through the Private Bank network.
(4)
The above corporate loan classifications are broadly based on the loan’s collateral, purpose and type of borrower, which may be different from the following
industry table. For example, commercial and industrial, financial institutions, and installment and other loan classifications include various forms of loans to
borrowers across multiple industries, whereas mortgage and real estate includes loans secured primarily by real estate.
N/A Not applicable
91
The following table details Citi’s corporate credit ACLL by industry exposure:
December 31, 2024
In millions of dollars, except percentages
Funded
exposure(1)
ACLL
ACLL as a % of
funded exposure
Transportation and industrials
$
57,166 $
460
0.8 %
Banks and finance companies
56,716
307
0.5
Real estate(2)
53,186
717
1.3
Commercial
36,200
645
1.8
Residential
16,986
72
0.4
Consumer retail
32,212
258
0.8
Technology, media and telecom
29,534
238
0.8
Power, chemicals, metals and mining
18,504
257
1.4
Public sector
13,209
47
0.4
Energy and commodities
11,686
136
1.2
Health
8,537
77
0.9
Asset managers and funds
5,258
28
0.5
Insurance
2,115
8
0.4
Securities firms
590
9
1.5
Financial markets infrastructure
181
1
0.6
Other industries(3)
4,733
13
0.3
Total(4)
$
293,627 $
2,556
0.9 %
(1)
Funded exposure excludes loans carried at fair value of $7.8 billion that are not subject to ACLL under the CECL standard.
(2)
As of December 31, 2024, the portion of the ACLL attributed to the total funded CRE exposure (including the Private Bank) was approximately 1.60%.
(3)
Includes $0.6 billion of funded exposure at December 31, 2024, primarily related to commercial credit card delinquency-managed loans.
(4)
As of December 31, 2024, the ACLL above reflects coverage of 0.4% of funded investment-grade exposure and 2% of funded non-investment-grade
exposure.
The following table details Citi’s corporate credit ACLL by industry exposure:
December 31, 2023
In millions of dollars, except percentages
Funded
exposure(1)
ACLL
ACLL as a % of
funded exposure
Transportation and industrials
$
59,917 $
453
0.8 %
Banks and finance companies
52,569
179
0.3
Real estate(2)
51,660
663
1.3
Commercial
35,058
599
1.7
Residential
16,602
64
0.4
Consumer retail
33,548
282
0.8
Technology, media and telecom
29,832
376
1.3
Power, chemicals, metals and mining
19,004
270
1.4
Public sector
12,621
102
0.8
Energy and commodities
12,606
166
1.3
Health
9,135
72
0.8
Asset managers and funds
4,232
36
0.9
Insurance
2,390
14
0.6
Securities firms
734
23
3.1
Financial markets infrastructure
156
—
—
Other industries(3)
4,480
78
1.7
Total(4)
$
292,884 $
2,714
0.9 %
(1)
Funded exposure excludes loans carried at fair value of $7.3 billion that are not subject to ACLL under the CECL standard.
(2)
As of December 31, 2023, the portion of the ACLL attributed to the total funded CRE exposure (including the Private Bank) was approximately 1.49%.
(3)
Includes $0.6 billion of funded exposure at December 31, 2023, primarily related to commercial credit card delinquency-managed loans.
(4)
As of December 31, 2023, the ACLL above reflects coverage of 0.3% of funded investment-grade exposure and 2.9% of funded non-investment-grade exposure.
92
Non-Accrual Loans and Assets
There is a certain amount of overlap among non-accrual loans
and assets. The following summary provides a general
description of each category:
•
Corporate and consumer (including commercial banking)
non-accrual status is based on the determination that
payment of interest or principal is doubtful.
•
A corporate loan may be classified as non-accrual and still
be current on principal and interest payments under the
terms of the loan structure.
•
Consumer non-accrual status is generally based on aging,
i.e., the borrower has fallen behind on payments.
•
Consumer mortgage loans, other than Federal Housing
Administration (FHA)–insured loans, are classified as
non-accrual within 60 days of notification that the
borrower has filed for bankruptcy. Uninsured consumer
mortgage loans are classified as non-accrual if the loan is
90 days or more past due. In addition, home equity loans
are classified as non-accrual if the related residential first
mortgage loan is 90 days or more past due.
•
U.S. Branded Cards and Retail Services are not included
because, under industry standards, credit card loans
accrue interest until such loans are charged off, which
typically occurs at 180 days of contractual delinquency.
93
Non-Accrual Loans
The table below summarizes Citigroup’s non-accrual loans
(NAL) as of the periods indicated. Non-accrual loans may still
be current on interest payments. In situations where Citi
reasonably expects that only a portion of the principal owed
will ultimately be collected, all payments received are
reflected as a reduction of principal and not as interest income.
For all other non-accrual loans, cash interest receipts are
generally recorded as revenue.
December 31,
In millions of dollars
2024
2023
2022
2021
2020
Corporate non-accrual loans by region(1)(2)(3)
North America
$
757 $
978 $
138 $
510 $
1,486
International
620
904
984
1,043
1,560
Total
$
1,377 $
1,882 $
1,122 $
1,553 $
3,046
International NAL by cluster
United Kingdom
$
190 $
268 $
288 $
227 $
422
Japan, Asia North and Australia (JANA)
22
70
50
82
118
LATAM
301
367
429
568
719
Asia South
17
35
3
26
94
Europe
58
139
117
88
193
Middle East and Africa (MEA)
32
25
97
52
14
Corporate non-accrual loans(1)(2)(3)
Banking
$
498 $
799 $
757 $
1,166 $
2,595
Services
65
103
153
70
79
Markets
715
791
13
85
193
Mexico SBMM
99
189
199
232
179
Total
$
1,377 $
1,882 $
1,122 $
1,553 $
3,046
Consumer non-accrual loans(1)
Wealth
$
404 $
288 $
259 $
336 $
494
USPB
290
291
282
344
456
Mexico Consumer
411
479
457
524
774
Asia Consumer(4)
19
22
30
209
296
Legacy Holdings Assets (consumer)
186
235
289
413
602
Total
$
1,310 $
1,315 $
1,317 $
1,826 $
2,622
Total non-accrual loans
$
2,687 $
3,197 $
2,439 $
3,379 $
5,668
(1)
Corporate loans are placed on non-accrual status based on a review by Citigroup’s risk officers. Corporate non-accrual loans may still be current on interest
payments. With limited exceptions, the following practices are applied for consumer loans: consumer loans, excluding credit cards and mortgages, are placed on
non-accrual status at 90 days past due and are charged off at 120 days past due; residential mortgage loans are placed on non-accrual status at 90 days past due and
written down to net realizable value at 180 days past due. Consistent with industry conventions, Citigroup generally accrues interest on credit card loans until such
loans are charged off, which typically occurs at 180 days contractual delinquency. As such, the non-accrual loan disclosures do not include credit card loans. The
balances above represent non-accrual loans within Corporate loans and Consumer loans on the Consolidated Balance Sheet.
(2)
Approximately 61%, 50%, 50%, 56% and 64% of Citi’s corporate non-accrual loans remain current on interest and principal payments at December 31, 2024,
2023, 2022, 2021 and 2020, respectively.
(3)
The December 31, 2024 total corporate non-accrual loans represented 0.46% of total corporate loans.
(4)
Asia Consumer includes balances in Poland and Russia for all periods presented and in Bahrain for December 31, 2021 and 2020.
94
The changes in Citigroup’s non-accrual loans were as follows:
Year ended
Year ended
December 31, 2024
December 31, 2023
In millions of dollars
Corporate
Consumer
Total
Corporate
Consumer
Total
Non-accrual loans at beginning of year
$
1,882 $
1,315 $
3,197 $
1,122 $
1,317 $
2,439
Additions
1,517
1,966
3,483
2,103
1,702
3,805
Sales and transfers to HFS
(443)
(14)
(457)
(110)
(22)
(132)
Returned to performing
(269)
(206)
(475)
(141)
(315)
(456)
Paydowns/settlements
(934)
(531)
(1,465)
(819)
(476)
(1,295)
Charge-offs
(372)
(951)
(1,323)
(264)
(851)
(1,115)
Other
(4)
(269)
(273)
(9)
(40)
(49)
Ending balance
$
1,377 $
1,310 $
2,687 $
1,882 $
1,315 $
3,197
The table below summarizes Citigroup’s other real estate owned (OREO) assets. OREO is recorded on the Consolidated Balance
Sheet within Other assets. This represents the carrying value of all real estate property acquired by foreclosure or other legal
proceedings when Citi has taken possession of the collateral:
December 31,
In millions of dollars
2024
2023
2022
2021
2020
OREO
North America
$
9
$
17
$
10
$
15
$
19
International(1)
9
19
5
12
24
Total OREO
$
18
$
36
$
15
$
27
$
43
Non-accrual assets
Corporate non-accrual loans
$
1,377
$
1,882
$
1,122
$
1,553
$
3,046
Consumer non-accrual loans
1,310
1,315
1,317
1,826
2,622
Non-accrual loans (NAL)
$
2,687
$
3,197
$
2,439
$
3,379
$
5,668
OREO
18
36
15
27
43
Non-accrual assets (NAA)
$
2,705
$
3,233
$
2,454
$
3,406
$
5,711
NAL as a percentage of total loans
0.39 %
0.46 %
0.37 %
0.51 %
0.84 %
NAA as a percentage of total assets
0.11
0.13
0.10
0.15
0.25
ACLL as a percentage of NAL(2)
691
568
696
487
440
(1)
The International OREO details by cluster are not provided due to the immateriality of such amounts.
(2)
The ACLL includes the allowance for Citi’s credit card portfolios and purchased credit-deteriorated loans, while the non-accrual loans exclude credit card
balances (with the exception of certain international portfolios).
95
LIQUIDITY RISK
Overview
Adequate and diverse sources of funding and liquidity are
essential to Citi’s businesses. Funding and liquidity risks arise
from several factors, many of which are mostly or entirely
outside of Citi’s control, such as disruptions in the financial
markets, changes in key funding sources, credit spreads,
changes in Citi’s credit ratings and macroeconomic,
geopolitical and other conditions. For additional information,
see “Risk Factors—Liquidity Risks” above.
Citi’s funding and liquidity management objectives are
aimed at (i) funding its existing asset base, (ii) growing its
core businesses, (iii) maintaining sufficient liquidity,
structured appropriately, so that Citi can operate under a
variety of adverse circumstances, including potential
Company-specific and/or market liquidity events in varying
durations and severity, and (iv) satisfying regulatory
requirements, including, but not limited to, those related to
resolution planning (see “Resolution Plan” and “Total Loss-
Absorbing Capacity (TLAC)” below). Citigroup’s primary
liquidity objectives are established by entity, and in aggregate,
across two major categories:
•
Citibank (including Citibank Europe plc, Citibank
Singapore Ltd. and Citibank (Hong Kong) Ltd.); and
•
Citi’s non-bank and other entities, including the parent
holding company (Citigroup Inc.), Citi’s primary
intermediate holding company (Citicorp LLC), Citi’s
broker-dealer subsidiaries (including Citigroup Global
Markets Inc., Citigroup Global Markets Limited and
Citigroup Global Markets Japan Inc.) and other bank and
non-bank subsidiaries that are consolidated into Citigroup
(including Banamex).
At an aggregate Citigroup level, Citi’s goal is to maintain
sufficient funding in amount and tenor to fully fund customer
assets and to provide an appropriate amount of cash and high-
quality liquid assets (as discussed below), even in times of
stress, in order to meet its payment obligations as they come
due. The liquidity risk management framework provides that,
in addition to the aggregate requirements, certain entities be
self-sufficient or net providers of liquidity, including in
conditions established under their designated stress tests.
Citi’s primary funding sources include (i) corporate and
consumer deposits via Citi’s bank subsidiaries, including
Citibank, N.A. (Citibank), (ii) long-term debt (primarily senior
and subordinated debt) mainly issued by Citigroup Inc., as the
parent, and Citibank, and (iii) stockholders’ equity. These
sources may be supplemented by short-term borrowings,
primarily in the form of secured funding transactions.
Citi’s funding and liquidity framework, working in
concert with overall asset/liability management, helps ensure
that there is sufficient liquidity and tenor in the overall liability
structure (including funding products) of the Company relative
to the liquidity requirements of Citi’s assets. This reduces the
risk that liabilities will become due before assets mature or are
monetized. The Company holds excess liquidity, primarily in
the form of high-quality liquid assets (HQLA), as presented in
the table below.
Citi’s liquidity is managed centrally by Corporate
Treasury, reported within Corporate/Other in All Other, in
conjunction with regional and in-country treasurers with
oversight provided by Independent Risk Management and
various Asset and Liability Committees (ALCOs) at the
individual entity, region, country and business levels. Pursuant
to this approach, Citi’s HQLA are managed with emphasis on
asset/liability management and entity-level liquidity adequacy
throughout Citi.
Citi’s CRO and CFO co-chair Citigroup’s ALCO, which
includes Citi’s Treasurer and other senior executives. The
ALCO sets the strategy of the liquidity portfolio and monitors
portfolio performance (see “Risk Governance—Board and
Executive Management Committees” above). Significant
changes to portfolio asset allocations are approved by the
ALCO. Citi also has other ALCOs, which are established at
various organizational levels to ensure appropriate oversight
for individual entities, countries, franchise businesses and
regions, serving as the primary governance committees for
managing Citi’s balance sheet and liquidity.
As a supplement to Citigroup’s ALCO, Citi’s Funding
and Liquidity Risk Committee (FLRC) is focused on funding
and liquidity risk matters. The FLRC reviews and discusses
the funding and liquidity risk profile of, as well as risk
management practices for, Citigroup and Citibank and reports
its findings and recommendations to each relevant ALCO as
appropriate.
Liquidity Monitoring and Measurement
Stress Testing
Liquidity stress testing is performed for each of Citi’s major
entities, operating subsidiaries and countries. Stress testing
and scenario analyses are intended to quantify the potential
impact of an adverse liquidity event on the balance sheet and
liquidity position, in order to have sufficient liquidity on hand
to manage through such an event. These scenarios include
assumptions about significant changes in key funding sources,
market triggers (such as credit ratings), potential uses of
funding and macroeconomic, geopolitical and other
conditions. These conditions include expected and stressed
market conditions as well as Company-specific events.
Liquidity stress tests are performed to ascertain potential
mismatches between liquidity sources and uses over a variety
of time horizons and over different stressed conditions. To
monitor the liquidity of an entity, these stress tests and
potential mismatches are calculated on a daily basis.
Given the range of potential stresses, Citi maintains
contingency funding plans on a consolidated basis and for
individual entities. These plans specify a wide range of readily
available actions for a variety of adverse market conditions or
idiosyncratic stresses.
96
High-Quality Liquid Assets (HQLA)
Citibank
Citi non-bank and other entities
Total
In billions of dollars
Dec. 31,
2024
Sept. 30,
2024
Dec. 31,
2023
Dec. 31,
2024
Sept. 30,
2024
Dec. 31,
2023
Dec. 31,
2024
Sept. 30,
2024
Dec. 31,
2023
Available cash
$
227.1 $
211.6 $
200.6 $
7.7 $
6.9 $
5.6 $
234.8 $
218.5 $
206.2
U.S. sovereign
191.2
205.0
131.6
46.8
43.2
74.3
238.0
248.2
205.9
U.S. agency/agency MBS
26.6
28.2
51.0
2.1
2.0
3.1
28.7
30.2
54.1
Foreign government debt(1)
44.2
38.1
76.0
12.6
16.2
18.0
56.8
54.3
94.0
Other investment grade
—
—
0.2
0.1
—
0.1
0.1
—
0.3
Total HQLA (AVG)
$
489.1 $
482.9 $
459.4 $
69.3 $
68.3 $
101.1 $
558.4 $
551.2 $
560.5
Note: The amounts in the table above are presented on an average basis. For securities, the amounts represent the liquidity value that potentially could be realized and,
therefore, exclude any securities that are encumbered and incorporate any haircuts applicable under the U.S. LCR rule. The table above incorporates various restrictions
that could limit the transferability of liquidity between legal entities, including Section 23A of the Federal Reserve Act. Changes in HQLA line categories from the
prior-year period were primarily driven by the reallocation of nontransferable HQLA, which did not change total average HQLA, and thus did not impact Citi’s LCR
ratio.
(1) Foreign government debt includes securities issued or guaranteed by foreign sovereigns, agencies and multilateral development banks. Foreign government debt
securities are held largely to support local liquidity requirements and Citi’s local franchises and principally include government bonds from Japan, Korea, the
United Kingdom, Mexico and Hong Kong.
The table above includes average amounts of HQLA held
at Citigroup’s operating entities that are eligible for inclusion
in the calculation of Citigroup’s consolidated LCR, pursuant
to the U.S. LCR rules. These amounts include the HQLA
needed to meet the minimum requirements at these entities as
well as any amounts in excess of these minimums that are
available to be transferred to other entities within Citigroup.
Citigroup’s average HQLA increased quarter-over-quarter as
of the fourth quarter of 2024, primarily driven by an increase
in average wholesale funding.
As of December 31, 2024, Citigroup had approximately
$933 billion of available liquidity resources to support client
and business needs, including end-of-period HQLA ($554
billion); additional unencumbered HQLA, including excess
liquidity held at bank entities that is non-transferable to other
entities within Citigroup ($227 billion); and unused borrowing
capacity from available assets not already accounted for within
Citi’s HQLA to support additional advances from the Federal
Home Loan Bank (FHLB) and the Federal Reserve Bank
discount window ($152 billion).
Short-Term Liquidity Measurement: Liquidity Coverage
Ratio (LCR)
In addition to internal 30-day liquidity stress testing performed
for Citi’s major entities, operating subsidiaries and countries,
Citi also monitors its liquidity by reference to the LCR.
The LCR is calculated by dividing HQLA by estimated
net outflows assuming a stressed 30-day period, with the net
outflows determined by standardized stress outflow and inflow
rates prescribed in the LCR rule. The outflows are partially
offset by contractual inflows from assets maturing within 30
days. Similar to outflows, the inflows are calculated based on
prescribed factors to various asset categories, such as retail
loans as well as unsecured and secured wholesale lending. The
minimum LCR requirement is 100%.
The table below details the components of Citi’s LCR
calculation and HQLA in excess of net outflows for the
periods indicated:
In billions of dollars
Dec. 31,
2024
Sept. 30,
2024
Dec. 31,
2023
HQLA
$ 558.4
$ 551.2
$ 560.5
Net outflows
480.8
469.6
482.7
LCR
116 %
117 %
116 %
HQLA in excess of net outflows
$ 77.6
$ 81.6
$ 77.8
Note: The amounts are presented on an average basis.
As of December 31, 2024, Citigroup’s average LCR
decreased from the quarter ended September 30, 2024. The
decrease was primarily driven by increased market activity
and client lending within Citi’s broker-dealer subsidiaries,
partially offset by the increase in average HQLA.
In addition, considering Citi’s total available liquidity
resources at quarter end of $933 billion, Citi maintained
approximately $452 billion of excess liquidity resources above
the stressed average net outflow of approximately $481
billion, presented in the LCR table above.
97
Long-Term Liquidity Measurement: Net Stable Funding
Ratio (NSFR)
The NSFR measures the availability of an institution’s stable
funding against the required stable funding in accordance with
a calculation required by the rule. The ratio of available stable
funding to required stable funding must be greater than 100%.
In general, an institution’s available stable funding
includes portions of equity, deposits and long-term debt, while
its required stable funding is based on the liquidity
characteristics of its assets, derivatives and commitments.
Standardized weightings are required to be applied to the
various asset and liability classes.
For the quarter ended December 31, 2024, Citigroup’s
consolidated NSFR was compliant with the 100% minimum
requirement of the rule. (For additional information, see the
Consolidated Citigroup NSFR Disclosure for the quarterly
periods ended December 31, 2024 and September 30, 2024, on
Citi’s Investor Relations website. The Consolidated Citigroup
NSFR Disclosure on Citi’s Investor Relations website is not
incorporated by reference into, and does not form any part of,
this Form 10-K).
Select Balance Sheet Items
This section provides details of select liquidity-related assets
and liabilities reported on Citigroup’s Consolidated Balance
Sheet.
Cash and Investments
The table below details average and end-of-period Cash and
due from banks, Deposits with banks (collectively cash) and
Investment securities. Citi’s investment securities portfolio
consists largely of highly liquid U.S. Treasury, U.S. agency
and other sovereign bonds, with an aggregate duration of less
than three years. EOP cash and investments decreased 5%
quarter-over-quarter, primarily driven by reductions in
deposits and total long-term debt. At December 31, 2024,
Citi’s EOP cash and Investment securities comprised
approximately 32% of total assets:
In billions of dollars
4Q24
3Q24
4Q23
Cash and due from banks
$
30 $
26 $
27
Deposits with banks
284
266
252
Investment securities
484
500
516
Total Citigroup cash and
investment securities (AVG)
$
798 $
792 $
795
Total Citigroup cash and
investment securities (EOP)
$
753 $
794 $
780
Deposits
The table below details the average deposits, by segment and/
or business, and the total Citigroup end-of-period deposits for
each of the periods indicated:
In billions of dollars
4Q24
3Q24
4Q23
Services
$
839 $
825 $
803
TTS
704
690
681
Securities Services
135
135
122
Markets(1)
15
19
23
Banking
1
1
1
Wealth
315
316
307
USPB
86
85
105
All Other—Legacy Franchises
42
45
52
All Other—Corporate/Other(1)
22
20
29
Total Citigroup deposits (AVG)
$ 1,320 $ 1,311 $ 1,320
Total Citigroup deposits (EOP)
$ 1,284 $ 1,310 $ 1,309
(1)
During the third quarter of 2024, approximately $9 billion of
institutional deposits were moved from Markets to All Other—
Corporate/Other. Prior periods were not reclassified. For additional
information about the reallocated deposits, see Note 3.
Citi’s deposit base is spread across a diversified set of
countries, industries, clients and currencies and is subject to
Citi’s Liquidity Risk Management Policy and Procedures.
End-of-period deposits decreased 2% year-over-year,
primarily driven by declines in Legacy Franchises, reflecting
the continued wind-downs, the impact of FX translation and
reductions of corporate certificates of deposit in Corporate/
Other. End-of-period deposits decreased 2% sequentially,
primarily driven by temporary reductions at year end in
Services.
On an average basis, deposits were relatively flat year-
over-year and increased 1% sequentially, primarily driven by
Services. In the fourth quarter of 2024, average deposits for:
•
Services increased 4% year-over-year, as TTS increased
3% due to deepened client relationships and growth in
operational deposits, and Securities Services increased
11% driven by AUC growth.
•
USPB decreased 18% year-over-year, as the transfer of
certain relationships and the associated deposits to Wealth
more than offset underlying deposit growth.
•
Wealth increased 3% year-over-year, largely reflecting the
transfer of certain relationships and the associated
deposits from USPB, partially offset by the shift in
deposits to higher-yielding investments on Citi’s platform.
•
All Other decreased 21% year-over-year, primarily
reflecting the continued wind-downs, the impact of FX
translation of deposits in Legacy Franchises and
reductions of corporate certificates of deposit in
Corporate/Other.
98
The majority of Citi’s $1.3 trillion of end-of-period
deposits are institutional (approximately $820 billion) and
span approximately 90 countries. A large majority of these
institutional deposits are within TTS, and of these,
approximately 80% are from clients that use all three TTS
integrated services: payments and collections, liquidity
management and working capital solutions. In addition, nearly
80% of TTS deposits are from clients that have a longer than
15-year relationship with Citi.
Citi also has a strong consumer and wealth deposit base,
with $402 billion of USPB and Wealth deposits as of year end,
which are diversified across the Private Bank, Citigold and
Wealth at Work within Wealth, as well as USPB, and across
regions and products. As of year end, approximately 66% of
U.S. Citigold clients have been with Citi for more than 10
years and approximately 39% of Private Bank ultra-high net
worth clients have been with Citi for more than 10 years. In
addition, USPB’s deposits are spread across six key
metropolitan areas in the U.S.
Long-Term Debt
Long-term debt (generally defined as debt with original
maturities of one year or more) represents the most significant
component of Citi’s funding for the Citigroup parent company
and Citi’s non-bank subsidiaries and is a supplementary source
of funding for the bank entities.
Weighted-Average Maturity (WAM)
The following table presents Citigroup and its affiliates’
(including Citibank) WAM of unsecured long-term debt
issued with a remaining life greater than one year:
WAM in years
Dec. 31,
2024
Sept. 30,
2024
Dec. 31,
2023
Unsecured debt
7.3
7.5
7.5
Non-bank benchmark debt
6.9
7.0
7.0
Customer-related debt
8.7
8.6
8.6
TLAC-eligible debt
8.4
8.5
8.6
The WAM is calculated based on the contractual maturity
of each security. For securities that are redeemable prior to
maturity where the option is not held by the issuer, the WAM
is calculated based on the earliest date an option becomes
exercisable.
Long-Term Debt Outstanding
The following table presents Citi’s end-of-period total long-
term debt outstanding for each of the dates indicated:
In billions of dollars
Dec. 31,
2024
Sept. 30,
2024
Dec. 31,
2023
Non-bank(1)
Benchmark debt:
Senior debt
$ 107.4 $ 114.0 $ 110.3
Subordinated debt
28.7
27.9
24.9
Trust preferred
1.6
1.6
1.6
Customer-related debt
103.3
108.8
110.1
Local country and other(2)
10.8
10.3
8.0
Total non-bank
$ 251.8 $ 262.6 $ 254.9
Bank
FHLB borrowings
$
8.5 $
11.5 $
11.5
Securitizations(3)
5.1
5.4
6.7
Citibank benchmark senior debt
19.4
16.9
10.1
Local country and other(2)
2.5
2.7
3.4
Total bank
$
35.5 $
36.5 $
31.7
Total long-term debt
$ 287.3 $ 299.1 $ 286.6
Note: Amounts represent the current value of long-term debt on Citi’s
Consolidated Balance Sheet that, for certain debt instruments, includes
consideration of fair value, hedging impacts and unamortized discounts and
premiums.
(1)
Non-bank includes long-term debt issued to third parties by the parent
holding company (Citigroup) and Citi’s non-bank subsidiaries (including
broker-dealer subsidiaries) that are consolidated into Citigroup. As of
December 31, 2024, non-bank included $87.8 billion of long-term debt
issued by Citi’s broker-dealer and other subsidiaries that are
consolidated into Citigroup. Certain Citigroup consolidated hedging
activities are also included in this line.
(2)
Local country and other includes debt issued by Citi’s affiliates in
support of their local operations. Within non-bank, certain secured
financing is also included.
(3)
Predominantly credit card securitizations, primarily backed by Branded
Cards receivables.
Citi’s total long-term debt outstanding was essentially
unchanged year-over-year. Sequentially, long-term debt
outstanding decreased 4%, largely related to net maturities of
senior benchmark debt at the bank and non-bank entities and
customer-related debt issuances at the non-bank entities.
As part of its liability management, Citi has considered,
and may continue to consider, opportunities to redeem or
repurchase its long-term debt pursuant to open market
purchases, tender offers or other means. Such redemptions and
repurchases help reduce Citi’s overall funding costs. During
2024, Citi redeemed or repurchased an aggregate of $46.8
billion of its outstanding long-term debt.
99
Long-Term Debt Issuances and Maturities
The table below details Citi’s long-term debt issuances and maturities (including repurchases and redemptions) during the periods
presented:
2024
2023
2022
In billions of dollars
Maturities
Issuances
Maturities
Issuances
Maturities
Issuances
Non-bank
Benchmark debt:
Senior debt
$
13.9 $
11.7 $
10.2 $
— $
15.4 $
27.3
Subordinated debt
1.0
4.9
1.3
3.2
0.9
—
Trust preferred
—
—
—
—
0.1
—
Customer-related debt
59.2
56.7
42.1
40.1
27.0
65.1
Local country and other
6.1
8.8
3.1
3.9
2.8
3.5
Total non-bank
$
80.2 $
82.1 $
56.7 $
47.2 $
46.2 $
95.9
Bank
FHLB borrowings
$
7.0 $
4.0 $
4.3 $
8.5 $
5.3 $
7.3
Securitizations
1.7
—
2.4
1.5
2.1
0.2
Citibank benchmark senior debt
2.7
12.0
—
7.5
0.9
—
Local country and other
1.4
1.0
1.6
1.1
2.6
1.3
Total bank
$
12.8 $
17.0 $
8.3 $
18.6 $
10.9 $
8.8
Total
$
93.0 $
99.1 $
65.0 $
65.8 $
57.1 $
104.7
The table below details Citi’s aggregate long-term debt maturities (including repurchases and redemptions) in 2024, as well as its
aggregate expected remaining long-term debt maturities by year as of December 31, 2024:
Maturities
In billions of dollars
2024
2025
2026
2027
2028
2029
Thereafter
Total
Non-bank
Benchmark debt:
Senior debt
$
13.9 $
3.9 $
24.3 $
7.2 $
16.6 $
3.5 $
51.9 $
107.4
Subordinated debt
1.0
5.2
2.4
3.6
2.0
—
15.5
28.7
Trust preferred
—
—
—
—
—
—
1.6
1.6
Customer-related debt
59.2
20.8
12.4
13.2
7.1
9.6
40.2
103.3
Local country and other
6.1
2.0
1.0
1.0
1.0
1.3
4.5
10.8
Total non-bank
$
80.2 $
31.9 $
40.1 $
25.0 $
26.7 $
14.4 $
113.7 $
251.8
Bank
FHLB borrowings
$
7.0 $
6.5 $
2.0 $
— $
— $
— $
— $
8.5
Securitizations
1.7
0.9
—
1.9
—
0.8
1.5
5.1
Citibank benchmark senior debt
2.7
2.5
8.0
3.0
2.5
1.5
1.9
19.4
Local country and other
1.4
0.1
0.7
0.4
0.1
1.1
0.1
2.5
Total bank
$
12.8 $
10.0 $
10.7 $
5.3 $
2.6 $
3.4 $
3.5 $
35.5
Total long-term debt
$
93.0 $
41.9 $
50.8 $
30.3 $
29.3 $
17.8 $
117.2 $
287.3
100
Resolution Plan
Citigroup is required under Title I of the Dodd-Frank Wall
Street Reform and Consumer Protection Act of 2010 (Dodd-
Frank Act) and the rules promulgated by the FDIC and FRB to
periodically submit a plan for Citi’s rapid and orderly
resolution under the U.S. Bankruptcy Code in the event of
material financial distress or failure. For additional
information on risks related to the application of resolution
plan requirements, see “Risk Factors—Strategic Risks” above.
Citigroup alternates between submitting a full resolution plan
and a targeted resolution plan on a biennial cycle.
Under Citi’s preferred “single point of entry” resolution
plan strategy, only Citigroup, the parent holding company,
would enter into bankruptcy, while Citigroup’s material legal
entities (as defined in the public section of its 2023 resolution
plan, which can be found on the FRB’s and FDIC’s websites)
would remain operational outside of any resolution or
insolvency proceedings. Citigroup’s resolution plan has been
designed to minimize the risk of systemic impact to the U.S.
and global financial systems, while maximizing the value of
the bankruptcy estate for the benefit of Citigroup’s creditors,
including its unsecured long-term debt holders.
In addition, in line with the FRB’s total loss-absorbing
capacity (TLAC) rule, Citigroup’s shareholders and unsecured
creditors—including its unsecured long-term debt holders—
bear any losses resulting from Citigroup’s bankruptcy.
Accordingly, any value realized by holders of its unsecured
long-term debt may not be sufficient to repay the amounts
owed to such debt holders in the event of a bankruptcy or
other resolution proceeding of Citigroup.
The FDIC has also indicated that it was developing a
single point of entry strategy to implement the Orderly
Liquidation Authority under Title II of the Dodd-Frank Act,
which provides the FDIC with the ability to resolve a firm
when it is determined that bankruptcy would have serious
adverse effects on financial stability in the U.S.
As previously disclosed, in response to feedback received
from the FRB and FDIC, Citigroup took the following actions:
(i) Citicorp LLC (Citicorp), an existing wholly owned
subsidiary of Citigroup, was established as an
intermediate holding company (an IHC) for certain of
Citigroup’s operating material legal entities;
(ii) Citigroup executed an inter-affiliate agreement with
Citicorp, Citigroup’s operating material legal entities and
certain other affiliated entities pursuant to which Citicorp
is required to provide liquidity and capital support to
Citigroup’s operating material legal entities in the event
that Citigroup were to enter bankruptcy proceedings (Citi
Support Agreement);
(iii) pursuant to the Citi Support Agreement:
•
Citigroup made an initial contribution of assets,
including certain high-quality liquid assets and inter-
affiliate loans (Contributable Assets), to Citicorp, and
Citicorp became the business-as-usual funding
vehicle for Citigroup’s operating material legal
entities;
•
Citigroup will be obligated to continue to transfer
Contributable Assets to Citicorp over time, subject to
certain amounts retained by Citigroup to, among
other things, meet Citigroup’s near-term cash needs;
•
in the event of a Citigroup bankruptcy, Citigroup will
be required to contribute most of its remaining assets
to Citicorp; and
(iv) the obligations of both Citigroup and Citicorp under the
Citi Support Agreement, as well as the Contributable
Assets, are secured pursuant to a security agreement.
Total Loss-Absorbing Capacity (TLAC)
U.S. GSIBs are required to maintain minimum levels of TLAC
and eligible LTD, each set by reference to the GSIB’s
consolidated risk-weighted assets (RWA) and total leverage
exposure. The intended purpose of the requirements is to
facilitate the orderly resolution of U.S. GSIBs under the U.S.
Bankruptcy Code and Title II of the Dodd-Frank Act. For
additional information, including Citi’s TLAC and LTD
amounts and ratios, see “Capital Resources—Current
Regulatory Capital Standards” above.
101
SECURED FUNDING TRANSACTIONS AND SHORT-
TERM BORROWINGS
Citi supplements its primary sources of funding with short-
term financings that generally include (i) secured funding
transactions consisting of securities loaned or sold under
agreements to repurchase, i.e., repos, and (ii) to a lesser extent,
short-term borrowings consisting of commercial paper
issuances and borrowings from the FHLB and other market
participants.
Secured Funding Transactions
Secured funding is primarily accessed through Citi’s broker-
dealer subsidiaries, with a smaller portion executed through
Citi’s bank entities to efficiently fund both (i) secured lending
activity and (ii) a portion of the securities inventory held in the
context of market making and customer activities. Secured
funding transactions are predominantly collateralized by
government debt securities. Generally, changes in the level of
Citi’s secured funding are primarily due to fluctuations in
secured lending activity in the matched book (as described
below) and changes in securities inventory. In order to
maintain reliable funding under a wide range of market
conditions, Citi manages risks related to its secured funding by
establishing secured funding limits and conducting daily stress
tests that account for risks related to capacity, tenor, haircut,
collateral type, counterparty and client actions.
Secured funding of $255 billion as of December 31, 2024
decreased 8% both year-over-year and sequentially, largely
driven by lower financing to support trading-related assets
within Citi’s broker-dealer subsidiaries. As of the quarter
ended December 31, 2024, on an average basis, secured
funding was $318 billion. The portion of secured funding in
the broker-dealer subsidiaries that funds secured lending is
commonly referred to as “matched book” activity and is
primarily secured by high-quality liquid securities such as U.S.
Treasury securities, U.S. agency securities and foreign
government debt securities. Other “matched book” activity is
secured by less liquid securities, including equity securities,
corporate bonds and asset-backed securities, the tenor of
which is generally equal to or longer than the tenor of the
corresponding assets. As indicated above, the remaining
portion of secured funding is used to fund securities inventory
held in the context of market making and customer activities.
Short-Term Borrowings
Citi’s short-term borrowings of $49 billion as of December 31,
2024 increased 29% year-over-year, reflecting higher
commercial paper issuances at the broker-dealer subsidiaries,
as Citi continues to diversify its funding profile, and increased
17% sequentially, driven by the commercial paper issuances
and normal business activity (see Note 19 for further
information on Citigroup’s and its affiliates’ outstanding
short-term borrowings).
102
CREDIT RATINGS
Citigroup’s funding and liquidity, funding capacity, ability to
access capital markets and other sources of funds, the cost of
these funds and its ability to maintain certain deposits are
partially dependent on its credit ratings.
The table below presents the ratings for Citigroup and
Citibank as of December 31, 2024. While not included in the
table below, the long-term and short-term ratings of Citigroup
Global Markets Holding Inc. (CGMHI) were A+/F1 at Fitch
Ratings, A2/P-1 at Moody’s Ratings and A/A-1 at S&P Global
Ratings as of December 31, 2024.
Ratings as of December 31, 2024
Citigroup Inc.
Citibank, N.A.
Long-
term
Short-
term
Outlook
Long-
term
Short-
term
Outlook
Fitch Ratings (Fitch)
A
F1
Stable
A+
F1
Stable
Moody’s Ratings (Moody’s)
A3
P-2
Stable
Aa3
P-1
Stable
S&P Global Ratings (S&P)
BBB+
A-2
Stable
A+
A-1
Stable
Potential Impacts of Ratings Downgrades
Ratings downgrades by Fitch, Moody’s or S&P could
negatively impact Citigroup’s and/or Citibank’s funding and
liquidity due to reduced funding capacity, including derivative
triggers, which could take the form of cash obligations and
collateral requirements.
The following information is provided for the purpose of
analyzing the potential funding and liquidity impact to
Citigroup and Citibank of a hypothetical simultaneous ratings
downgrade across all three major rating agencies. This
analysis is subject to certain estimates, estimation
methodologies, judgments and uncertainties. Uncertainties
include potential ratings limitations that certain entities may
have with respect to permissible counterparties, as well as
general subjective counterparty behavior. For example, certain
corporate customers and markets counterparties could re-
evaluate their business relationships with Citi and limit
transactions in certain contracts or market instruments with
Citi. Changes in counterparty behavior could impact Citi’s
funding and liquidity, as well as the results of operations of
certain of its businesses. The actual impact to Citigroup or
Citibank is unpredictable and may differ materially from the
potential funding and liquidity impacts described below. For
additional information on the impact of credit rating changes
on Citi and its applicable subsidiaries, see “Risk Factors—
Liquidity Risks” above.
Citigroup Inc. and Citibank—Potential Derivative Triggers
As of December 31, 2024, Citi estimates that a hypothetical
one-notch downgrade of the senior debt/long-term rating
across all three major rating agencies could impact funding
and liquidity due to derivative triggers by approximately $0.1
billion, unchanged from September 30, 2024, for Citigroup
Inc., and $0.1 billion, unchanged from September 30, 2024,
for Citibank. Other funding sources, such as secured financing
transactions and other margin requirements, for which there
are no explicit triggers, could also be adversely affected.
In total, as of December 31, 2024, Citi estimates that a
one-notch downgrade of Citigroup Inc. and Citibank across all
three major rating agencies could result in increased aggregate
cash obligations and collateral requirements of approximately
$0.2 billion, compared to $0.2 billion as of September 30,
2024. As detailed under “High-Quality Liquid Assets
(HQLA)” above, Citigroup has various liquidity resources
available to its bank and non-bank entities in part as a
contingency for the potential events described above.
In addition, a broad range of mitigating actions are
currently included in Citigroup’s and Citibank’s contingency
funding plans. For Citigroup, these mitigating factors include,
but are not limited to, accessing surplus funding capacity from
existing clients, tailoring levels of secured lending and
adjusting the size of select trading books and collateralized
borrowings at certain Citibank subsidiaries. Mitigating actions
available to Citibank include, but are not limited to, selling or
financing highly liquid government securities, tailoring levels
of secured lending, adjusting the size of select trading assets,
reducing loan originations and renewals, raising additional
deposits or borrowing from the FHLB or central banks. Citi
believes these mitigating actions could substantially reduce the
funding and liquidity risk, if any, of the potential downgrades
described above.
Citibank—Additional Potential Impacts
In addition to the above derivative triggers, Citi believes that a
potential downgrade of Citibank’s senior debt/long-term rating
across any of the three major rating agencies could also have
an adverse impact on the commercial paper/short-term rating
of Citibank. Citibank has provided liquidity commitments to
consolidated asset-backed commercial paper conduits,
primarily in the form of asset purchase agreements. As of
December 31, 2024, Citibank had liquidity commitments of
approximately $14.9 billion to consolidated asset-backed
commercial paper conduits (compared to $11.0 billion at
December 31, 2023) (see Note 23).
103
In addition to the above-referenced liquidity resources of
certain Citibank entities, Citibank could reduce the funding
and liquidity risk, if any, of the potential downgrades
described above through mitigating actions, including
repricing or reducing certain commitments to commercial
paper conduits. In the event of the potential downgrades
described above, Citi believes that certain corporate customers
could re-evaluate their deposit relationships with Citibank.
This re-evaluation could result in clients adjusting their
discretionary deposit levels or changing their depository
institution, which could potentially reduce certain deposit
levels at Citibank. However, Citi could choose to adjust
pricing, offer alternative deposit products to its existing
customers or seek to attract deposits from new customers, in
addition to the mitigating actions referenced above.
MARKET RISK
Overview
Market risk is the potential for losses arising from changes in
the value of Citi’s assets and liabilities resulting from changes
in market variables such as interest rates, foreign exchange
rates, equity prices, commodity prices and credit spreads, as
well as their implied volatilities. Market risk arises from both
Citi’s trading and non-trading portfolios. For additional
information on market risk and market risk management at
Citi, see “Risk Factors” above.
Each business is required to establish, with approval from
Citi’s market risk management, a market risk limit framework
for identified risk factors that clearly defines approved risk
profiles and is within the parameters of Citi’s overall risk
appetite. These limits are monitored by the Risk organization,
including various regional, legal entity and business Risk
Management committees, Citi’s country and business Asset
and Liability Committees and the Citigroup Risk Management
and Asset and Liability Committees. In all cases, the
businesses are ultimately responsible for the market risks
taken and for remaining within their defined limits.
MARKET RISK OF NON-TRADING PORTFOLIOS
Market risk from non-trading portfolios stems predominantly
from the potential impact of changes in interest rates and
foreign exchange rates on Citi’s net interest income and on
Citi’s Accumulated other comprehensive income (loss) (AOCI)
from its investment securities portfolios. Market risk from
non-trading portfolios also includes the potential impact of
changes in foreign exchange rates on Citi’s capital invested in
foreign currencies.
Banking Book Interest Rate Risk
For interest rate risk purposes, Citi’s non-trading portfolios are
referred to as the Banking Book. Management of interest rate
risk in the Banking Book is governed by Citi’s Non-Trading
Market Risk Policy. Citigroup’s Asset and Liability
Committee (ALCO) establishes Citi’s risk appetite and related
limits for interest rate risk in the Banking Book, which are
subject to approval by Citigroup’s Board of Directors.
Corporate Treasury is responsible for the day-to-day
management of Citi’s Banking Book interest rate risk as well
as periodically reviewing it with the ALCO. Citi’s Banking
Book interest rate risk management is also subject to
independent oversight from the second line of defense team
reporting to the Chief Risk Officer.
Changes in interest rates impact Citi’s net income, AOCI
and CET1. These changes primarily affect Citi’s Banking
Book through net interest income, due to a variety of risk
factors, including:
•
Differences in timing and amounts of the maturity or
repricing of assets, liabilities and off-balance sheet
instruments;
•
Changes in the level and/or shape of interest rate curves;
•
Client behavior in response to changes in interest rates
(e.g., mortgage prepayments, deposit betas); and
•
Changes in the maturity of instruments resulting from
changes in the interest rate environment.
As part of their ongoing activities, Citi’s businesses
generate interest rate-sensitive positions from their client-
facing products, such as loans and deposits. Interest rate risk is
transferred via Citi’s funds transfer-pricing process to Citi
Corporate Treasury. Citi Corporate Treasury uses various tools
to manage the total interest rate risk position within the
established risk appetite and target Citi’s desired risk profile,
including its investment securities portfolio, company-issued
debt and interest rate derivatives.
In addition, Citi uses multiple metrics to measure its
Banking Book interest rate risk. Interest Rate Exposure (IRE)
is a key metric that analyzes the impact of a range of scenarios
on Citi’s Banking Book net interest income versus a base case.
IRE does not represent a forecast of Citi’s net interest income.
The scenarios, methodologies and assumptions used in
Citi’s IRE analysis are periodically evaluated and enhanced in
response to changes in the market environment, changes in
Citi’s balance sheet composition, enhancements in Citi’s
modeling and other factors.
Citi utilizes the most recent quarter-end balance sheet,
assuming no changes to its composition and size over the
forecasted horizon (holding the balance sheet static). The
forecasts incorporate expectations and assumptions of deposit
pricing, loan spreads and mortgage prepayment behavior
implied by the interest rate curves in each scenario. The base
case scenario reflects the market-implied forward interest
rates, and sensitivity scenarios assume instantaneous shocks to
the base case. The forecasts do not assume Citi takes any risk-
mitigating actions in response to changes in the interest rate
environment. Certain interest rates are subject to flooring
assumptions in downward rate scenarios. Deposit pricing
sensitivities (i.e., deposit betas) are informed by historical and
expected behavior. Actual deposit pricing could differ from
the assumptions used in these forecasts.
104
Citi’s IRE analysis primarily reflects the impacts from the
following Banking Book assets and liabilities: loans, client
deposits, Citi’s deposits with other banks, investment
securities, long-term debt, any related interest rate hedges and
the funds transfer pricing of positions in total trading and
credit portfolio value at risk (VaR). It excludes impacts from
any positions that are included in total trading and credit
portfolio VaR.
In addition to IRE, Citi analyzes economic value
sensitivity (EVS) as a longer-term interest rate risk metric.
EVS is a net present value (NPV)–based measure of the
lifetime cash flows of Citi’s Banking Book. It estimates the
interest rate sensitivity of the Banking Book’s economic value
from longer-term assets being potentially funded with shorter-
term liabilities, or vice versa. Citi manages EVS within risk
limits approved by Citigroup’s Board of Directors that are
aligned with Citi’s risk appetite.
Interest Rate Risk of Investment Portfolios—Impact
on AOCI
Citi measures the potential impacts of changes in interest rates
on the value of its AOCI, which can in turn impact Citi’s
common equity and tangible common equity. This will impact
Citi’s CET1 and other regulatory capital ratios. Citi seeks to
manage its exposure to changes in the market level of interest
rates, while limiting the potential impact on its AOCI and
regulatory capital position.
AOCI at risk is managed as part of the Company-wide
interest rate risk position. AOCI at risk considers potential
changes in AOCI (and the corresponding impact on the CET1
Capital ratio) relative to Citi’s capital generation capacity.
Citi uses 100 basis point (bps) shocks in each scenario to
reflect its net interest income sensitivity to unanticipated
changes in market interest rates, as potential monetary policy
decisions and changes in economic conditions may be
reflected in current market-implied forward rates.
The following table presents the 12-month estimated impact to Citi’s net interest income, AOCI and the CET1 Capital ratio, each
assuming an unanticipated parallel instantaneous 100 bps increase in interest rates:
In millions of dollars, except as otherwise noted
Dec. 31, 2024
Sept. 30, 2024
Dec. 31, 2023
Parallel interest rate shock +100 bps
Interest rate exposure(1)(2)
U.S. dollar
$
(93)
$
(227)
$
(33)
All other currencies
1,068
1,388
1,219
Total net interest income
$
975
$
1,161
$
1,186
As a percentage of average interest-earning assets
0.04 %
0.05 %
0.05 %
Estimated initial negative impact to AOCI (after-tax)(2)
$
(1,111)
$
(1,084)
$
(829)
Estimated initial impact on CET1 Capital ratio (bps) from AOCI scenario(3)
(13)
(14)
(12)
(1)
Excludes trading book and fair value option banking book portfolios and replaces them with the associated transfer pricing.
(2)
Includes the effect of changes in interest rates on AOCI related to investment securities, cash flow hedges and pension liability adjustments.
(3)
Excludes the effect of changes in interest rates on AOCI related to cash flow hedges, as those changes are excluded from CET1 Capital.
As presented in the table above, Citi’s balance sheet is
asset sensitive (assets reprice faster than liabilities), resulting
in higher net interest income in increasing interest rate
scenarios. The estimated impact to Citi’s net interest income in
a 100 bps upward rate shock scenario as of December 31,
2024 remained relatively stable year-over-year. At
progressively higher interest rate levels, the marginal net
interest income benefit is lower, as Citi assumes it will pass on
a larger share of rate changes to depositors (i.e., higher betas),
further reducing Citi’s IRE sensitivity. Currency-specific
interest rate changes and balance sheet factors may drive
quarter-to-quarter volatility in Citi’s estimated IRE for a 100
bps upward rate shock.
All other currencies of $1.1 billion as of December 31,
2024 in the table above includes the impact from the following
top five non-U.S. dollar currencies by absolute size:
approximately $(0.2) billion from the euro, $0.2 billion from
the British pound sterling, and approximately $0.1 billion each
from the Chinese yuan, Swiss franc and Indian rupee. The
remaining impact is spread across more than 30 additional
currencies.
In a 100 bps upward rate shock scenario, Citi expects that
the approximate $1.0 billion initial negative impact to AOCI
could potentially be offset in shareholders’ equity through the
expected recovery of the impact on AOCI through accretion of
Citi’s investment portfolio and expected net interest income
benefit over a period of approximately six months.
105
Scenario Analysis
The following table presents the estimated impact to Citi’s net
interest income and AOCI under eight different interest rate
scenarios for the U.S. dollar and all other currencies in which
Citi has invested capital as of December 31, 2024. The 100
bps and 200 bps downward rate scenarios potentially may be
impacted by the low level of interest rates in several countries
and the assumption that market interest rates, as well as rates
paid to depositors and charged to borrowers, do not fall below
zero (i.e., the “flooring assumption”). The interest rate
scenarios are also impacted by convexity related to mortgage
products and deposit pricing.
In millions of dollars, except as
otherwise noted
Scenario 1
Scenario 2
Scenario 3
Scenario 4
Scenario 5
Scenario 6
Scenario 7
Scenario 8
Overnight rate change (bps)
100
100
—
—
(100)
(100)
200
(200)
10-year rate change (bps)
100
—
100
(100)
—
(100)
200
(200)
Interest rate exposure
U.S. dollar
$
(93) $
(302) $
240 $
(182) $
(456) $
(661) $
(144) $
(1,261)
All other currencies(1)
1,068
898
171
(170)
(836)
(997)
2,107
(1,954)
Total
$
975 $
596 $
411 $
(352) $
(1,292) $
(1,658) $
1,963 $
(3,215)
Estimated initial impact to
AOCI (after-tax)(2)
$
(1,111) $
(1,239) $
(89) $
(387) $
1,242 $
880 $
(2,336) $
1,388
Note: Each scenario assumes that the rate change will occur instantaneously. Changes in interest rates for maturities between the overnight rate and the 10-year rate are
interpolated. The interest rate exposure in the table above assumes no change in deposit size or mix from the baseline forecast included in the different interest rate
scenarios presented. As a result, in higher interest rate scenarios, customer activity resulting in a shift from non-interest-bearing and low interest rate deposit products to
higher-yielding deposits would reduce the expected benefit to net interest income. Conversely, in lower interest rate scenarios, customer activity resulting in a shift from
higher-yielding deposits to non-interest-bearing and low interest rate deposit products would reduce the expected decrease to net interest income.
(1)
The Scenario 1 impact of $1,068 million consists of the following top five non-U.S. dollar currencies as of December 31, 2024 by absolute size: approximately
$(0.2) billion from the euro, $0.2 billion from the British pound sterling, and approximately $0.1 billion each from the Chinese yuan, Swiss franc and Indian
rupee. The remaining balance is spread across more than 30 additional currencies.
(2)
Includes the effect of changes in interest rates on AOCI related to investment securities, cash flow hedges and pension liability adjustments.
As presented in the table above, the estimated impact to
Citi’s net interest income is larger in the short end compared
to the long end as Citi’s Banking Book has relatively higher
interest rate exposure to the short end of the yield curve. For
the U.S. dollar, exposure to downward rate shocks is larger in
magnitude than to upward rate shocks. This is because of the
lower benefit to net interest income from Citi’s deposit base at
higher rate levels, as well as the prepayment effects on
mortgage loans and mortgage-backed securities.
The magnitude of the impact to AOCI is greater in the
short end compared to the long end. This is because Citi’s
investment portfolio and pension liabilities are more sensitive
to rates at shorter- and intermediate-term maturities.
106
Changes in Foreign Exchange Rates—Impacts on AOCI
and Capital
As of December 31, 2024, Citi estimates that an unanticipated
parallel instantaneous 5% appreciation of the U.S. dollar
against all of the other currencies in which Citi has invested
capital could reduce Citi’s tangible common equity (TCE) by
approximately $1.5 billion, or 1.0%, as a result of changes to
Citi’s CTA in AOCI, net of hedges. This reduction in the TCE
would be primarily driven by depreciation in the value of the
euro, Mexican peso and Indian rupee.
This reduction in the TCE does not reflect any mitigating
actions Citi may take, including ongoing management of its
foreign currency translation exposure. TCE is used as a
simplified metric to manage CET1 capital ratio volatility.
Specifically, as currency movements change the value of
Citi’s net investments in foreign currency-denominated
capital, these movements also change the value of Citi’s RWA
denominated in those same currencies. This, coupled with
Citi’s foreign currency hedging strategies, such as foreign
currency borrowings, foreign currency forwards and other
currency hedging instruments, lessens the impact of foreign
currency movements on Citi’s CET1 Capital ratio. Changes in
these hedging strategies, as well as hedging costs, divestitures
and tax impacts, can further affect the actual impact of
changes in foreign exchange rates on Citi’s capital compared
to an unanticipated parallel shock, as described above.
The effect of Citi’s ongoing management strategies with
respect to quarterly changes in foreign exchange rates (versus
the U.S. dollar), and the quarterly impact of these changes on
Citi’s TCE and CET1 Capital ratio, are presented in the table
below. See Note 21 for additional information on the changes
in AOCI.
For the quarter ended
In millions of dollars
Dec. 31, 2024
Sept. 30, 2024
Dec. 31, 2023
Change in FX spot rate(1)
(6.1) %
2.5 %
3.2 %
Change in TCE due to FX translation, net of hedges
$
(2,465)
$
421
$
960
As a percentage of TCE
(1.5) %
0.2 %
0.6 %
(1) FX spot rate change is a weighted average based on Citi’s quarterly average GAAP capital exposure to foreign countries. A negative change in FX spot rate
represents foreign currency depreciation versus the U.S. dollar.
107
Interest Income/Expense and Net Interest Margin (NIM)
In millions of dollars, except as otherwise noted
2024
2023
2022
Change
2024 vs. 2023
Change
2023 vs. 2022
Interest income(1)
$ 143,807
$ 133,359
$ 74,573
8 %
79 %
Interest expense(2)
89,618
78,358
25,740
14
204
Net interest income, taxable equivalent basis(1)
$ 54,189
$ 55,001
$ 48,833
(1) %
13 %
Interest income—average rate(3)
6.36 %
5.97 %
3.43 %
39
bps
254
bps
Interest expense—average rate
4.90
4.35
1.48
55
bps
287
bps
Net interest margin(3)(4)
2.40
2.46
2.25
(6)
bps
21
bps
Interest rate benchmarks
Two-year U.S. Treasury note—average rate
4.37 %
4.58 %
2.99 %
(21)
bps
159
bps
10-year U.S. Treasury note—average rate
4.21
3.96
2.95
25
bps
101
bps
10-year vs. two-year spread
(16)
bps
(62)
bps
(4)
bps
(1)
Interest income and Net interest income include the taxable equivalent gross-up adjustments (TEGU) primarily related to the tax-exempt bond portfolio and
certain tax-advantaged loan programs of $94 million, $101 million and $165 million for 2024, 2023 and 2022, respectively.
(2)
Interest expense associated with certain hybrid financial instruments, which are classified as Long-term debt and accounted for at fair value, is reported together
with any changes in fair value as part of Principal transactions in the Consolidated Statement of Income and is therefore not reflected in Interest expense in the
table above.
(3)
The average rate on interest income and NIM reflects TEGU. See footnote 1 above.
(4)
Citi’s NIM is calculated by dividing net interest income (including TEGU) by average interest-earning assets.
108
Non-Markets Net Interest Income
In millions of dollars
2024
2023
2022
Net interest income—taxable equivalent basis(1) per above
$
54,189
$
55,001
$
48,833
Markets net interest income—taxable equivalent basis(1)
7,099
7,334
5,933
Non-Markets net interest income—taxable equivalent basis(1)
$
47,090
$
47,667
$
42,900
(1)
Interest income and Net interest income include TEGU discussed in the table above.
Citi’s net interest income in the fourth quarter of 2024 was
$13.7 billion on a reported basis and $13.8 billion on a taxable
equivalent basis, a decrease of $0.1 billion from the prior-year
period, primarily driven by Markets (down approximately $0.1
billion), partially offset by non-Markets (up approximately
$0.04 billion). The decline in Markets net interest income was
primarily driven by higher funding costs related to trading
inventory in Fixed Income Markets.
The increase in non-Markets net interest income was
largely due to loan growth in cards in USPB and maturing
assets in Citi’s securities portfolio being reinvested at higher
yields, partially offset by net investment securities losses
reflecting the repositioning of the investment securities
portfolio.
Citi’s net interest margin was 2.42% on a taxable
equivalent basis in the fourth quarter of 2024, an increase of
nine basis points from the prior quarter, largely driven by
higher Markets net interest margin.
Citi’s net interest income for 2024 decreased 1%, or
approximately $0.8 billion, to $54.1 billion ($54.2 billion on a
taxable equivalent basis) versus the prior year. The decrease
was primarily due to a decrease in non-Markets net interest
income, largely driven by higher funding costs in the
mortgage-backed securities portfolio in Corporate Treasury
within All Other and lower revenue from Citi’s net investment
in Argentina, partially offset by growth in USPB and Wealth.
In 2024, Citi’s net interest margin decreased to 2.40% on
a taxable equivalent basis, compared to 2.46% in 2023,
primarily driven by lower revenue from Citi’s net investment
in Argentina and higher funding cost.
109
Additional Interest Rate Details
Average Balances and Interest Rates—Assets(1)(2)(3)
Taxable Equivalent Basis
Assets
Average balance
Interest income
% Average rate
In millions of dollars, except rates
2024
2023
2022
2024
2023
2022
2024
2023
2022
Deposits with banks(4)
$
263,236 $
287,518 $
262,504 $ 11,417 $ 11,238 $
4,515
4.34 %
3.91 %
1.72 %
Securities borrowed and
purchased under agreements to
resell(5)
In U.S. offices
$
149,521 $
171,307 $
188,672 $ 13,492 $ 13,194 $
3,933
9.02 %
7.70 %
2.08 %
In offices outside the U.S.(4)
194,417
189,548
164,675
15,681
13,693
3,221
8.07
7.22
1.96
Total
$
343,938 $
360,855 $
353,347 $ 29,173 $ 26,887 $
7,154
8.48 %
7.45 %
2.02 %
Trading account assets(6)(7)
In U.S. offices
$
233,698 $
187,318 $
142,146 $ 11,103 $
8,808 $
4,005
4.75 %
4.70 %
2.82 %
In offices outside the U.S.(4)
162,227
144,684
132,046
6,473
5,652
3,422
3.99
3.91
2.59
Total
$
395,925 $
332,002 $
274,192 $ 17,576 $ 14,460 $
7,427
4.44 %
4.36 %
2.71 %
Investments
In U.S. offices
Taxable
$
307,066 $
335,975 $
355,012 $
7,952 $
8,903 $
5,642
2.59 %
2.65 %
1.59 %
Exempt from U.S. income tax
11,170
11,502
11,742
441
454
424
3.95
3.95
3.61
In offices outside the U.S.(4)
184,536
164,923
150,968
10,299
8,978
5,210
5.58
5.44
3.45
Total
$
502,772 $
512,400 $
517,722 $ 18,692 $ 18,335 $ 11,276
3.72 %
3.58 %
2.18 %
Consumer loans(8)
In U.S. offices
$
309,668 $
293,476 $
268,910 $ 32,684 $ 30,127 $ 23,127
10.55 %
10.27 %
8.60 %
In offices outside the U.S.(4)
75,215
78,420
86,497
6,858
6,737
5,264
9.12
8.59
6.09
Total
$
384,883 $
371,896 $
355,407 $ 39,542 $ 36,864 $ 28,391
10.27 %
9.91 %
7.99 %
Corporate loans(8)
In U.S. offices
$
137,047 $
136,065 $
139,906 $
8,944 $
7,561 $
5,417
6.53 %
5.56 %
3.87 %
In offices outside the U.S.(4)
161,294
153,111
158,008
13,682
13,507
7,528
8.48
8.82
4.76
Total
$
298,341 $
289,176 $
297,914 $ 22,626 $ 21,068 $ 12,945
7.58 %
7.29 %
4.35 %
Total loans(8)
In U.S. offices
$
446,715 $
429,541 $
408,816 $ 41,628 $ 37,688 $ 28,544
9.32 %
8.77 %
6.98 %
In offices outside the U.S.(4)
236,509
231,531
244,505
20,540
20,244
12,792
8.68
8.74
5.23
Total
$
683,224 $
661,072 $
653,321 $ 62,168 $ 57,932 $ 41,336
9.10 %
8.76 %
6.33 %
Other interest-earning assets(9)
$
73,418 $
81,431 $
112,549 $
4,781 $
4,507 $
2,865
6.51 %
5.53 %
2.55 %
Total interest-earning assets
$ 2,262,513 $ 2,235,278 $ 2,173,635 $ 143,807 $ 133,359 $ 74,573
6.36 %
5.97 %
3.43 %
Non-interest-earning assets(6)
$
205,918 $
206,955 $
222,388
Total assets
$ 2,468,431 $ 2,442,233 $ 2,396,023
(1)
Interest income and Net interest income include TEGU of $94 million, $101 million and $165 million for 2024, 2023 and 2022, respectively.
(2)
Interest rates and amounts include the effects of risk management activities associated with the respective asset categories.
(3)
Monthly or quarterly averages have been used by certain subsidiaries where daily averages are unavailable.
(4)
Average rates reflect prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.
(5)
Average volumes of securities borrowed or purchased under agreements to resell are reported net pursuant to ASC 210-20-45. However, Interest income excludes
the impact of ASC 210-20-45.
(6)
The fair value carrying amounts of derivative contracts are reported net, pursuant to ASC 815-10-45, in Non-interest-earning assets and Other non-interest-
bearing liabilities.
(7)
Interest expense on Trading account liabilities of Services, Markets and Banking is reported as a reduction of Interest income. Interest income and Interest
expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively.
(8)
Net of unearned income. Includes cash-basis loans.
(9)
Includes assets from businesses held-for-sale (see Note 2) and Brokerage receivables.
110
Average Balances and Interest Rates—Liabilities and Equity, and Net Interest Income(1)(2)(3)
Taxable Equivalent Basis
Liabilities
Average balance
Interest expense
% Average rate
In millions of dollars, except rates
2024
2023
2022
2024
2023
2022
2024
2023
2022
Deposits
In U.S. offices(4)
$
570,048 $
594,588 $
572,394 $ 22,720 $ 20,602 $
5,986
3.99 %
3.46 %
1.05 %
In offices outside the U.S.(5)
546,583
536,749
516,329
17,606
15,698
5,573
3.22
2.92
1.08
Total
$ 1,116,631 $ 1,131,337 $ 1,088,723 $ 40,326 $ 36,300 $ 11,559
3.61 %
3.21 %
1.06 %
Securities loaned and sold under
agreements to repurchase(6)
In U.S. offices
$
237,486 $
168,319 $
112,771 $ 18,130 $ 13,152 $
2,816
7.63 %
7.81 %
2.50 %
In offices outside the U.S.(5)
88,272
93,962
94,936
9,754
8,287
1,639
11.05
8.82
1.73
Total
$
325,758 $
262,281 $
207,707 $ 27,884 $ 21,439 $
4,455
8.56 %
8.17 %
2.14 %
Trading account liabilities(7)(8)
In U.S. offices
$
39,926 $
47,394 $
52,166 $
1,858 $
1,806 $
697
4.65 %
3.81 %
1.34 %
In offices outside the U.S.(5)
58,892
71,476
70,102
1,492
1,621
740
2.53
2.27
1.06
Total
$
98,818 $
118,870 $
122,268 $
3,350 $
3,427 $
1,437
3.39 %
2.88 %
1.18 %
Short-term borrowings and other
interest-bearing liabilities(9)
In U.S. offices
$
81,533 $
90,000 $
95,054 $
6,568 $
6,661 $
2,161
8.06 %
7.40 %
2.27 %
In offices outside the U.S.(5)
33,751
36,061
55,133
1,135
777
327
3.36
2.15
0.59
Total
$
115,284 $
126,061 $
150,187 $
7,703 $
7,438 $
2,488
6.68 %
5.90 %
1.66 %
Long-term debt(10)
In U.S. offices
$
170,556 $
161,650 $
166,063 $ 10,181 $
9,544 $
5,625
5.97 %
5.90 %
3.39 %
In offices outside the U.S.(5)
2,228
2,524
3,592
174
210
176
7.81
8.32
4.90
Total
$
172,784 $
164,174 $
169,655 $ 10,355 $
9,754 $
5,801
5.99 %
5.94 %
3.42 %
Total interest-bearing liabilities
$ 1,829,275 $ 1,802,723 $ 1,738,540 $ 89,618 $ 78,358 $ 25,740
4.90 %
4.35 %
1.48 %
Non-interest-bearing deposits(11)
$
200,319 $
202,736 $
244,741
Other non-interest-bearing
liabilities(7)
230,757
228,887
213,135
Total liabilities
$ 2,260,351 $ 2,234,346 $ 2,196,416
Citigroup stockholders’ equity
$
207,292 $
207,207 $
199,088
Noncontrolling interests
788
680
519
Total equity
$
208,080 $
207,887 $
199,607
Total liabilities and stockholders’
equity
$ 2,468,431 $ 2,442,233 $ 2,396,023
Net interest income as a
percentage of average interest-
earning assets(12)
In U.S. offices
$ 1,303,259 $ 1,314,455 $ 1,272,223 $ 24,520 $ 27,222 $ 28,802
1.88 %
2.07 %
2.26 %
In offices outside the U.S.(6)
959,254
920,823
901,412
29,669
27,779
20,031
3.09
3.02
2.22
Total
$ 2,262,513 $ 2,235,278 $ 2,173,635 $ 54,189 $ 55,001 $ 48,833
2.40 %
2.46 %
2.25 %
(1)
Interest income and Net interest income include TEGU discussed in the table above.
(2)
Interest rates and amounts include the effects of risk management activities associated with the respective liability categories.
(3)
Monthly or quarterly averages have been used by certain subsidiaries where daily averages are unavailable.
(4)
Consists of other time deposits and savings deposits. Savings deposits are composed of insured money market accounts and other savings deposits.
(5)
Average rates reflect prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.
(6)
Average volumes of securities sold under agreements to repurchase are reported net pursuant to ASC 210-20-45. However, Interest expense excludes the impact of
ASC 210-20-45.
(7)
The fair value carrying amounts of derivative contracts are reported net, pursuant to ASC 815-10-45, in Non-interest-earning assets and Other non-interest-
bearing liabilities.
(8)
Interest expense on Trading account liabilities of Services, Markets and Banking is reported as a reduction of Interest income. Interest income and Interest
expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively.
(9)
Includes Brokerage payables.
111
(10) Excludes hybrid financial instruments and beneficial interests in consolidated VIEs that are classified as Long-term debt, as the changes in fair value for these
obligations are recorded in Principal transactions.
(11) Includes non-interest-bearing deposits in both the U.S. and outside of the U.S.
(12) Includes allocations for capital and funding costs based on the location of the asset.
Analysis of Changes in Interest Revenue(1)(2)(3)
2024 vs. 2023
2023 vs. 2022
Increase (decrease)
due to change in:
Increase (decrease)
due to change in:
In millions of dollars
Average
balance
Average
rate
Net
change
Average
balance
Average
rate
Net
change
Deposits with banks(3)
$
(994) $
1,173 $
179 $
468 $
6,255 $
6,723
Securities borrowed and purchased under agreements to resell
In U.S. offices
$ (1,800) $
2,098 $
298 $
(394) $
9,655 $
9,261
In offices outside the U.S.(3)
359
1,629
1,988
556
9,916
10,472
Total
$ (1,441) $
3,727 $
2,286 $
162 $ 19,571 $ 19,733
Trading account assets(4)
In U.S. offices
$
2,203 $
92 $
2,295 $
1,547 $
3,256 $
4,803
In offices outside the U.S.(3)
698
123
821
354
1,876
2,230
Total
$
2,901 $
215 $
3,116 $
1,901 $
5,132 $
7,033
Investments(1)
In U.S. offices
$
(774) $
(190) $
(964) $
(334) $
3,625 $
3,291
In offices outside the U.S.(3)
1,090
231
1,321
520
3,248
3,768
Total
$
316 $
41 $
357 $
186 $
6,873 $
7,059
Consumer loans (net of unearned income)(5)
In U.S. offices
$
1,693 $
864 $
2,557 $
2,244 $
4,756 $
7,000
In offices outside the U.S.(3)
(282)
403
121
(529)
2,002
1,473
Total
$
1,411 $
1,267 $
2,678 $
1,715 $
6,758 $
8,473
Corporate loans (net of unearned income)(5)
In U.S. offices
$
55 $
1,328 $
1,383 $
(153) $
2,297 $
2,144
In offices outside the U.S.(3)
706
(531)
175
(240)
6,219
5,979
Total
$
761 $
797 $
1,558 $
(393) $
8,516 $
8,123
Loans (net of unearned income)(5)
In U.S. offices
$
1,748 $
2,192 $
3,940 $
2,091 $
7,053 $
9,144
In offices outside the U.S.(3)
424
(128)
296
(769)
8,221
7,452
Total
$
2,172 $
2,064 $
4,236 $
1,322 $ 15,274 $ 16,596
Other interest-earning assets(6)
$
(472) $
746 $
274 $
(969) $
2,611 $
1,642
Total interest income
$
2,482 $
7,966 $ 10,448 $
3,070 $ 55,716 $ 58,786
(1)
Interest income and Net interest income include the taxable equivalent adjustments discussed in the table above.
(2)
Rate/volume variance is allocated based on the percentage relationship of changes in volume and changes in rate to the total net change.
(3)
Changes in average rates reflect changes in prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.
(4)
Interest expense on Trading account liabilities of Services, Markets and Banking is reported as a reduction of Interest income. Interest income and Interest
expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively.
(5)
Includes cash-basis loans.
(6)
Includes Brokerage receivables.
112
Analysis of Changes in Interest Expense and Net Interest Income(1)(2)(3)
2024 vs. 2023
2023 vs. 2022
Increase (decrease)
due to change in:
Increase (decrease)
due to change in:
In millions of dollars
Average
balance
Average
rate
Net
change
Average
balance
Average
rate
Net
change
Deposits
In U.S. offices
$
(878) $
2,996 $
2,118 $
241 $ 14,375 $ 14,616
In offices outside the U.S.(3)
292
1,616
1,908
229
9,896
10,125
Total
$
(586) $
4,612 $
4,026 $
470 $ 24,271 $ 24,741
Securities loaned and sold under agreements to repurchase
In U.S. offices
$
5,287 $
(309) $
4,978 $
1,942 $
8,394 $ 10,336
In offices outside the U.S.(3)
(526)
1,993
1,467
(17)
6,665
6,648
Total
$
4,761 $
1,684 $
6,445 $
1,925 $ 15,059 $ 16,984
Trading account liabilities(4)
In U.S. offices
$
(311) $
363 $
52 $
(69) $
1,178 $
1,109
In offices outside the U.S.(3)
(305)
176
(129)
15
866
881
Total
$
(616) $
539 $
(77) $
(54) $
2,044 $
1,990
Short-term borrowings and other interest-bearing liabilities(5)
In U.S. offices
$
(655) $
562 $
(93) $
(121) $
4,621 $
4,500
In offices outside the U.S.(3)
(53)
411
358
(148)
598
450
Total
$
(708) $
973 $
265 $
(269) $
5,219 $
4,950
Long-term debt
In U.S. offices
$
531 $
106 $
637 $
(153) $
4,072 $
3,919
In offices outside the U.S.(3)
(24)
(12)
(36)
(63)
97
34
Total
$
507 $
94 $
601 $
(216) $
4,169 $
3,953
Total interest expense
$
3,358 $
7,902 $ 11,260 $
1,856 $ 50,762 $ 52,618
Net interest income
$
(876) $
64 $
(812) $
1,215 $
4,953 $
6,168
(1)
Interest income and Net interest income include the taxable equivalent adjustments discussed in the table above.
(2)
Rate/volume variance is allocated based on the percentage relationship of changes in volume and changes in rate to the total net change.
(3)
Changes in average rates reflect changes in prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.
(4)
Interest expense on Trading account liabilities of Services, Markets and Banking is reported as a reduction of Interest income. Interest income and Interest
expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively.
(5)
Includes Brokerage payables.
113
MARKET RISK OF TRADING PORTFOLIOS
Trading portfolios include positions resulting from market-
making activities, hedges of certain available-for-sale (AFS)
debt securities, the CVA relating to derivative counterparties
and all associated hedges, fair value option loans and hedges
of the loan portfolio within capital markets origination.
Management of the market risk of Citi’s trading portfolio is
governed by the Mark-to-Market Risk Policy and the Markets
Risk Management Committee.
The market risk of Citi’s trading portfolios is monitored
using a combination of quantitative and qualitative measures,
including, but not limited to, factor sensitivities, value at risk
(VaR) and stress testing. Each trading portfolio across Citi’s
businesses has its own market risk limit framework
encompassing these measures and other controls, including
trading mandates, new product approval, permitted product
lists and pre-trade approval for larger, more complex and less
liquid transactions. These controls enable the monitoring and
management of Citi’s top market risks.
The following chart of total daily trading-related revenue
(loss) captures trading volatility and shows the number of days
in which revenues for Citi’s trading businesses fell within
particular ranges. Trading-related revenue includes trading, net
interest and other revenue associated with Citi’s trading
businesses. It excludes DVA, FVA and CVA adjustments
incurred due to changes in the credit quality of counterparties,
as well as any associated hedges of that CVA. In addition, it
excludes fees and other revenue associated with capital
markets origination activities. Trading-related revenues are
driven by both customer flows and the changes in valuation of
the trading inventory. As presented in the chart below, Citi
achieved positive trading-related revenue for 98.5% of the
trading days in 2024.
Daily Trading-Related Revenue (Loss)(1)—12 Months Ended December 31, 2024
In millions of dollars
(1) Reflects the effects of asymmetrical accounting for economic hedges of certain AFS debt securities. Specifically, the change in the fair value of hedging
derivatives is included in trading-related revenue, while the offsetting change in the fair value of hedged AFS debt securities is included in AOCI and not reflected
above.
114
Factor Sensitivities
When managing market risk for its trading portfolios, Citi uses
factor sensitivities to measure the change in value of a position
for a defined change in a market risk factor, such as a change
in the value of a U.S. Treasury bond for a one-basis-point
change in interest rates. Citi’s Global Market Risk function,
within the Independent Risk Management organization, works
to ensure that factor sensitivities are calculated, monitored and
limited for all material risks taken in the trading portfolios.
Value at Risk (VaR)
VaR estimates, at a 99% confidence level, the potential
decline in the value of a position or a portfolio under normal
market conditions assuming a one-day holding period. VaR
statistics, which are based on historical data, can be materially
different across firms due to differences in portfolio
composition, VaR methodologies and model parameters. As a
result, Citi believes VaR statistics can be used more
effectively as indicators of trends in risk-taking within a firm,
rather than as a basis for inferring differences in risk-taking
across firms.
Citi uses a single, independently approved Monte Carlo
simulation VaR model (see “VaR Model Review and
Validation” below), which has been designed to capture
material risk sensitivities (such as first- and second-order
sensitivities of positions to changes in market prices) of
various asset classes/risk types (such as interest rate, credit
spread, foreign exchange, equity and commodity risks). Citi’s
VaR includes positions that are measured at fair value; it does
not include investment securities classified as AFS or HTM.
See Note 14 for information on these securities.
Citi believes its VaR model is conservatively calibrated to
incorporate fat-tail scaling and the greater of short-term
(approximately the most recent month) and long-term (18
months for commodities and three years for others) market
volatility. The Monte Carlo simulation involves approximately
550,000 market factors, making use of approximately 480,000
time series, with sensitivities updated daily, volatility
parameters updated intra-monthly and correlation parameters
updated monthly. As of December 31, 2024, Citi estimates
that the conservative features of the VaR calibration contribute
an approximate 24% add-on to what would be a VaR
estimated under the assumption of stable and perfectly,
normally distributed markets.
As presented in the table below, Citi’s average trading
VaR decreased $10 million from 2023 to 2024, due to reduced
volatility and changes in exposure. Citi’s average trading and
credit portfolio VaR decreased $15 million, in line with the
decline in average trading VaR.
Year-end and Average Trading VaR and Trading and Credit Portfolio VaR
In millions of dollars
December 31,
2024
2024
Average
December 31,
2023
2023
Average
Interest rate
$
96 $
95 $
121 $
119
Credit spread
77
67
59
69
Covariance adjustment(1)
(49)
(52)
(47)
(50)
Fully diversified interest rate and credit spread(2)
$
124 $
110 $
133 $
138
Foreign exchange
56
54
134
33
Equity
29
31
38
26
Commodity
25
22
19
31
Covariance adjustment(1)
(108)
(92)
(132)
(93)
Total trading VaR—all market risk factors, including general and specific risk
(excluding credit portfolios)(2)
$
126 $
125 $
192 $
135
Specific risk-only component(3)
$
11 $
(3) $
(6) $
(7)
Total trading VaR—general market risk factors only (excluding credit portfolios)
$
115 $
128 $
198 $
142
Incremental impact of the credit portfolio(4)
$
4 $
8 $
10 $
13
Total trading and credit portfolio VaR
$
130 $
133 $
202 $
148
(1)
Covariance adjustment (also known as diversification benefit) equals the difference between the total VaR and the sum of the VaRs tied to each risk type. The
benefit reflects the fact that the risks within individual and across risk types are not perfectly correlated and, consequently, the total VaR on a given day will be
lower than the sum of the VaRs relating to each risk type. The determination of the primary drivers of changes to the covariance adjustment is made by an
examination of the impact of both model parameter and position changes.
(2)
The total trading VaR includes mark-to-market and certain fair value option trading positions with the exception of hedges of the loan portfolio, fair value option
loans and all CVA exposures. Available-for-sale and accrual exposures are not included.
(3) The specific risk-only component represents the level of equity and fixed income issuer-specific risk embedded in VaR.
(4) The credit portfolio is composed of mark-to-market positions associated with non-trading business units, the CVA relating to derivative counterparties, all
associated CVA hedges and market sensitivity FVA hedges. FVA and DVA are not included. The credit portfolio also includes hedges of the loan portfolio, fair
value option loans and hedges of the leveraged finance pipeline within capital markets origination.
115
The table below provides the range of market factor VaRs associated with Citi’s total trading VaR, inclusive of specific risk:
2024
2023
In millions of dollars
Low
High
Low
High
Interest rate
$
62 $
132 $
85 $
186
Credit spread
55
83
54
88
Fully diversified interest rate and credit spread
$
77 $
145 $
105 $
211
Foreign exchange
31
111
12
134
Equity
13
84
3
88
Commodity
14
32
17
47
Total trading
$
82 $
185 $
99 $
214
Total trading and credit portfolio
91
196
111
225
Note: No covariance adjustment can be inferred from the above table as the high and low for each market factor will be from different close-of-business dates.
The following table provides the VaR for Markets,
excluding the CVA relating to derivative counterparties,
hedges of CVA, fair value option loans and hedges of the loan
portfolio:
In millions of dollars
December 31,
2024
Total—all market risk factors, including
general and specific risk
$
126
Average—during year
$
123
High—during year
182
Low—during year
82
VaR Model Review and Validation
Generally, Citi’s VaR review and model validation process
entails reviewing the model framework, major assumptions
and implementation of the mathematical algorithm. In
addition, product-specific back-testing on portfolios is
periodically completed as part of the ongoing model
performance monitoring process and reviewed with Citi’s U.S.
banking regulators. Furthermore, Regulatory VaR back-testing
(as described below) is performed against buy-and-hold profit
and loss on a monthly basis for multiple sub-portfolios across
the organization (trading desk level and total Citigroup) and
the results are shared with U.S. banking regulators.
Material VaR model and assumption changes must be
independently validated within Citi’s Independent Risk
Management organization. All model changes, including those
for the VaR model, are validated by the model validation
group within Citi’s Model Risk Management. In the event of
significant model changes, parallel model runs are undertaken
prior to implementation. In addition, significant model and
assumption changes are subject to the periodic reviews and
approval by Citi’s U.S. banking regulators.
Citi uses the same independently validated VaR model for
both Regulatory VaR and Risk Management VaR (i.e., total
trading and total trading and credit portfolios VaRs) and, as
such, the model review and validation process for both
purposes is as described above.
Regulatory VaR, which is calculated in accordance with
Basel III, differs from Risk Management VaR because certain
positions included in Risk Management VaR are not eligible
for market risk treatment in Regulatory VaR. The composition
of Risk Management VaR is discussed under “Value at Risk”
above. The applicability of the VaR model for positions
eligible for market risk treatment under U.S. regulatory capital
rules is periodically reviewed and approved by Citi’s U.S.
banking regulators.
In accordance with Basel III, Regulatory VaR includes all
trading book-covered positions and all foreign exchange and
commodity exposures. Pursuant to Basel III, Regulatory VaR
excludes positions that fail to meet the intent and ability to
trade requirements and are therefore classified as non-trading
book and categories of exposures that are specifically
excluded as covered positions. Regulatory VaR excludes CVA
on derivative instruments and DVA on Citi’s own fair value
option liabilities. CVA hedges are excluded from Regulatory
VaR and included in credit risk-weighted assets as computed
under the Advanced Approaches for determining risk-
weighted assets.
Regulatory VaR Back-Testing
In accordance with Basel III, Citi is required to perform back-
testing to evaluate the effectiveness of its Regulatory VaR
model. Regulatory VaR back-testing is the process in which
the daily one-day VaR, at a 99% confidence interval, is
compared to the buy-and-hold profit and loss (i.e., the profit
and loss impact if the portfolio is held constant at the end of
the day and re-priced the following day). Buy-and-hold profit
and loss represents the daily mark-to-market profit and loss
attributable to price movements in covered positions from the
close of the previous business day. Buy-and-hold profit and
loss excludes realized trading revenue, net interest, fees and
commissions, intra-day trading profit and loss and changes in
reserves.
Based on a 99% confidence level, Citi would expect two
to three days in any one year where buy-and-hold losses
exceed the Regulatory VaR. Given the conservative
calibration of Citi’s VaR model (as a result of taking the
greater of short- and long-term volatilities and fat-tail scaling
of volatilities), Citi would expect fewer exceptions under
normal and stable market conditions. Periods of unstable
market conditions could increase the number of back-testing
exceptions.
116
The following graph presents the daily buy-and-hold
profit and loss associated with Citi’s covered positions
compared to Citi’s one-day Regulatory VaR during 2024.
During 2024, no back-testing exceptions were observed at the
Citigroup level.
The difference between the 58.8% of days with buy-and-
hold gains for Regulatory VaR back-testing and the 98.5% of
days with trading, net interest and other revenue associated
with Citi’s trading businesses, presented in the histogram of
daily trading-related revenue below, reflects, among other
things, that a significant portion of Citi’s trading-related
revenue is not generated from daily price movements on these
positions and exposures, as well as differences in the portfolio
composition of Regulatory VaR and Risk Management VaR.
Regulatory Trading VaR and Associated Buy-and-Hold Profit and Loss(1)—12 Months Ended December 31, 2024
In millions of dollars
(1) Buy-and-hold profit and loss, as defined by the banking regulators under Basel III, represents the daily mark-to-market revenue movement attributable to the
trading position from the close of the previous business day. Buy-and-hold profit and loss excludes realized trading revenue and net interest intra-day trading
profit and loss on new and terminated trades, as well as changes in reserves. Therefore, it is not comparable to the trading-related revenue presented in the chart of
daily trading-related revenue above.
117
Stress Testing
Citi performs market risk stress testing on a regular basis to
estimate the impact of extreme market movements. It is
performed on individual positions and trading portfolios, as
well as in aggregate, inclusive of multiple trading portfolios.
Citi’s market risk management, after consultations with the
businesses, develops both systemic and specific stress
scenarios, reviews the output of periodic stress testing
exercises and uses the information to assess the ongoing
appropriateness of exposure levels and limits. Citi uses two
complementary approaches to market risk stress testing across
all major risk factors (i.e., equity, foreign exchange,
commodity, interest rate and credit spreads): top-down
systemic stresses and bottom-up business-specific stresses.
Systemic stresses are designed to quantify the potential impact
of extreme market movements on an institution-wide basis,
and are constructed using both historical periods of market
stress and projections of adverse economic scenarios.
Business-specific stresses are designed to probe the risks of
particular portfolios and market segments, especially those
risks that are not fully captured in VaR and systemic stresses.
The systemic stress scenarios and business-specific stress
scenarios at Citi are used in several reports reviewed by senior
management and also to calculate internal risk capital for
trading market risk, as well as enable the monitoring and
managing of Citi’s top market risks.
In general, changes in market values are defined over a
one-year horizon. For the most liquid positions and market
factors, changes in market values are defined over a shorter
two-month horizon. The limited set of positions and market
factors whose market value changes are defined over a two-
month horizon are those that in management’s judgment have
historically remained very liquid during financial crises, even
as the trading liquidity of most other positions and market
factors materially declined.
OPERATIONAL RISK
Overview
Operational risk is the risk of loss resulting from inadequate or
failed internal processes, human error or systems errors, or
external events. As discussed further below, operational risk
includes cybersecurity risk. It also includes legal risk, which is
the risk of loss (including litigation costs, settlements and
regulatory fines) resulting from the failure of Citi to comply
with laws, regulations, prudent ethical standards and
contractual obligations in any aspect of its businesses, but
excludes strategic and reputation risks. Citi also recognizes the
impact of operational risk on the reputation risk associated
with Citi’s business activities.
Operational risk is inherent in Citi’s global business
activities, as well as related support functions, and can result
in losses. Citi maintains a comprehensive Company-wide risk
taxonomy to classify operational risks that it faces using
standardized definitions across Citi’s Operational Risk
Management Framework (see discussion below). This
taxonomy also supports regulatory requirements and
expectations inclusive of those related to U.S. Basel III,
Comprehensive Capital Analysis and Review (CCAR),
Heightened Standards for Large Financial Institutions and
Dodd-Frank Act Stress Testing (DFAST).
Citi manages operational risk consistent with the overall
framework described in “Managing Global Risk—Overview”
above. Citi’s goal is to keep operational risk at appropriate
levels relative to the characteristics of its businesses, the
markets in which it operates, its capital and liquidity and the
competitive, economic and regulatory environment. This
includes effectively managing operational risk and
maintaining or reducing operational risk exposures within
Citi’s operational risk appetite.
Citi’s Independent Operational Risk Management group
has established a global Operational Risk Management
Framework with policies and practices for identification,
measurement, monitoring, controlling and reporting
operational risks and the overall operating effectiveness of the
internal control environment. As part of this framework, Citi
has defined its operational risk appetite and established a
Manager’s Control Assessment (MCA) process for self-
identification of significant operational risks, assessment of
the performance of key controls and mitigation of residual risk
above acceptable levels.
Each Citi operating segment must implement operational
risk management processes consistent with the requirements
of this framework. This includes:
•
understanding and assessing the operational risks they are
exposed to;
•
designing, executing and testing controls that mitigate
identified risks;
•
establishing key indicators;
•
monitoring and reporting whether the operational risk
exposures are in or out of their operational risk appetite;
•
having processes in place to bring operational risk
exposures within acceptable levels;
•
periodically estimating and aggregating the operational
risks they are exposed to; and
•
ensuring that sufficient resources are available to actively
improve the operational risk environment and mitigate
emerging risks.
Citi considers operational risks that result from the
introduction of new or changes to existing products, or result
from significant changes in its organizational structures,
systems, processes and personnel.
Citi has a governance structure for the oversight of
operational risk exposures through Business Risk and Controls
Committees (BRCCs), which are focused at the group,
business or function, or geography level. BRCCs provide
channels to inform and escalate to senior management about
operational risk exposures, control issues and operational risk
events, and allow them to take and document decisions around
the mitigation, remediation or acceptance of operational risk
exposures.
In addition, Independent Risk Management, including the
Operational Risk Management group, works proactively with
Citi’s businesses and functions to drive a strong and embedded
operational risk management culture and framework across
Citi. The Operational Risk Management group actively
challenges business and functions implementation of the
118
Operational Risk Management Framework requirements and
the quality of operational risk management practices and
outcomes.
Information about businesses’ key operational risks,
historical operational risk losses and the control environment
is reported by each major business segment and functional
area. Citi’s operational risk profile and related information is
summarized and reported to senior management, as well as to
the Audit and Risk Committees of Citigroup’s Board of
Directors by the Head of Operational Risk Management.
Operational risk is measured through Operational Risk
Capital and Operational Risk Regulatory Capital for the
Advanced Approaches under Basel III. Projected operational
risk losses under stress scenarios are estimated as a required
part of the FRB’s CCAR process.
For additional information on Citi’s operational risks, see
“Risk Factors—Operational Risks” above.
Cybersecurity Risk
Overview
Cybersecurity risk is the business risk associated with the
threat posed by a cyberattack, cyber breach or the failure to
protect Citi’s most vital business information assets or
operations, resulting in a financial or reputational loss (see the
operational processes and systems and cybersecurity risk
factors in “Risk Factors—Operational Risks” above). With an
evolving threat landscape, ever-increasing sophistication of
threat actor tactics, techniques and procedures, ongoing and
emerging geopolitical conflicts, and the use of new
technologies, including those enabled by artificial intelligence
and machine learning capabilities, to conduct financial
transactions, Citi and its clients, customers and third parties
(and fourth parties, etc.) continue to be at risk from
cyberattacks and information security incidents. Citi leverages
a threat-focused, defense-in-depth strategy that ensures that
multiple controls work in tandem against various threats to
increase the likelihood that malicious activity will be
prevented, detected and mitigated.
Citi has a mature cybersecurity threat identification and
management program that relies on an industry-aligned, risk-
based, defense-in-depth approach, including an internal
cybersecurity intelligence center, participation in industry and
government information-sharing programs, vulnerability
assessment and scanning tools, intrusion detection and
prevention systems, security incident and event management
systems, firewalls, penetration testing, adversary emulation
exercises, data management (including classification,
encryption at rest and in transit, and access management),
multi-factor authentication requirements and other logical,
physical and technical controls designed to prevent, deter,
mitigate and respond to cybersecurity threats.
Citi’s cyber and information security program is
supported by comprehensive governance, including policies,
standards and procedures that dictate requirements and best
practices around various program aspects, including, but not
limited to, third-party risk management, data management,
asset management, information security practices, security
incident management and regulatory compliance. Citi’s Chief
Information Security Organization’s risks and controls are
measured against its Cybersecurity Risk Appetite Statement,
which was initially approved by the Risk Management
Committee of the Board of Directors and is reapproved
annually by Citi’s Risk Committee, chaired by Citi’s Chief
Risk Officer. Citi’s Cybersecurity Risk Appetite Statement
leverages key risk indicators to establish enterprise risk
tolerance and define risk management strategy with respect to
cyber and information security. Further, Citi actively
participates in financial industry, government and cross-sector
knowledge-sharing groups to enhance individual and
collective cybersecurity preparedness and resilience.
Cybersecurity Risk Management and Governance
Citi’s technology and cybersecurity risk management program
is built on Citi’s three lines of defense, each of which is
integrated into Citi’s overall risk management systems and
processes.
Citi’s Chief Information Security Office, which is led by
Citi’s Head of Foundational Services and Chief Information
Security Officer (CISO), serves as the first line of defense.
This office provides frontline business, operational and
technical controls and capabilities to (1) protect against
cybersecurity risks, and (2) respond to cyber incidents,
including data breaches. Citi manages cybersecurity threats
through its state-of-the-art fusion centers, which serve as
central commands for monitoring and coordinating responses
to cyber threats.
Citi’s Chief Information Security Organization is
responsible for application and infrastructure defense and
security controls, performing vulnerability assessments and
third-party information security assessments (including
cybersecurity risk assessments associated with Citi’s use of
products and services from vendors and other third-party
providers), employee awareness and training programs, and
security incident management. In each case, the enterprise
information security team works in coordination with a
network of information security officers who are embedded
within Citi’s global businesses and functions, consistent with
Citi’s philosophy that all Citi stakeholders have a
responsibility in managing cyber and information security
risks.
Citi’s Technology and Cyber Compliance and Operational
Risk Office (TCCORO) serves as the second line of defense.
This office independently evaluates and challenges Citi’s risk
mitigation practices and capabilities, from a fused operational
risk and compliance lens. It functions as a joint second line of
defense and in accordance with Citi’s Cybersecurity Risk
Appetite Statement. TCCORO also advises first line partners
in CISO, supporting enterprise-wide efforts to proactively
identify and remediate cybersecurity risks before they
materialize as incidents that negatively affect business
operations.
To address evolving cybersecurity risks and
corresponding regulations, TCCORO monitors cybersecurity
legal and regulatory requirements, identifies and defines
emerging risks, executes strategic cybersecurity threat
assessments, performs new product and initiative reviews,
performs data management risk oversight and conducts
cybersecurity risk assurance reviews (inclusive of third-party
assessments). In addition, this office oversees and challenges
119
metrics related to cybersecurity and technology and ensures
they remain aligned with Citi’s overall operational risk
management framework to effectively track, identify and
manage risk. TCCORO presents an independent viewpoint on
enterprise cybersecurity risk posture, and oversees CISO’s
cybersecurity risk identification, measurement and enterprise-
wide governance of cybersecurity risk.
Internal Audit serves as Citi’s third line of defense and
provides independent assurance to the Audit Committee of the
Board on the effectiveness of controls operated by the first and
second lines of defense to manage cybersecurity risk.
Citi recognizes the risks associated with outsourcing
services to, sharing data with, and/or technologically
interacting with third parties. Citi has built a robust third-party
information security risk management program that governs
third-party engagements from selection, to the establishment
of legal agreements that govern the relationship, to ongoing
monitoring through the duration of the relationship. Third-
party risk management includes reliance on contractual
requirements around data and cybersecurity, vulnerability
assessments, third-party information security assessments
performed at intervals determined by risk level, governance to
manage end-of-life and end-of-vendor-support risks, and third-
party incident response protocols.
Management Governance
Citi’s Head of Technology and Business Enablement, who
reports directly to Citi’s CEO, has overall responsibility for
Citi’s first line of defense cyber and information security and
technology programs. Citi’s Head of Technology and Business
Enablement has over 30 years of experience in the financial
services industry. Prior to joining Citi, he was Senior Partner
at PriceWaterhouseCoopers where he oversaw the firm’s
strategy and execution. For additional information, see
“Corporate Information—Executive Officers” below.
Citi’s Head of Foundational Services and CISO, who
reports directly to Citi’s Head of Technology and Business
Enablement, has primary responsibility to assess and manage
Citi’s material risks from cybersecurity threats. Citi’s CISO
has decades of experience in managing cybersecurity risks
from prior roles as Deutsche Bank’s Chief Security Officer,
the Chief Information Officer for the Central Intelligence
Agency and the Chief Information Officer for the U.S.
Intelligence Community. The CISO is supported by a team of
subject matter experts in security operations, network
architecture, cyber and information security governance and
cybersecurity operations. Citi’s Chief Information Security
Office employs approximately 3,400 individuals to manage its
operations.
Citi’s Chief Technology Officer (CTO) and Head of
Emerging Technology and Strategic Partnerships, who also
reports to Citi’s Chief Information Officer, has primary
responsibility for technology policy, innovation enablement
and strategy. Citi’s CTO has served in various technology
roles at Citi since 2012, including most recently as Group
Head of Engineering and Architecture. Prior to joining Citi,
the CTO worked in equity linked technology at Bank of
America Merrill Lynch.
Multiple management committees and functions also
support Citi’s cyber and information security management.
The Chief Information Officer Committee (CIOC), which
consists of, among others, the Head of Technology and
Business Enablement, Citi’s Co-Chief Information Officers
(who report to the Head of Technology and Business
Enablement), the CISO, and the Head of TCCORO (who
reports both to Citi’s Head of Operational Risk within the Risk
organization and its Head of Global Functions Compliance
within the Global Legal and Compliance organization), serves
as an escalation forum for items requiring the attention of
technology senior management, including approval of policies,
and reports items requiring further escalation to the
Technology Committee of the Board of Directors, as
appropriate.
The Information Security Risk Operating Committee
(ISROC) is chaired by the CISO and comprises senior
members of the Chief Information Security Office and
representatives from partner organizations. This committee
sets the direction and prioritization for the implementation of
the cyber and information security program across Citi. The
committee reports and escalates to the CIOC, including for
intermediary review and approval of policies escalated from
the Information Technology Policy Council (see below). Any
actions constituting risk exceptions are escalated to the ISRC.
The Security Architecture Council, which reports to the
ISROC, is an oversight and decision-making body focused on
ensuring that the target level of security architectural maturity
is attained. This council is co-chaired by two representatives
from the security architecture and cybersecurity services
organizations.
Citi’s Information Technology Policy Council provides a
centralized review to oversee consistency in the formation of
information technology policies and standards. This counsel
maintains oversight of policy document requirements to
ensure that information technology policy documents meet
Citi’s objectives as established internally and are in line with
laws and regulations as identified and communicated by
ICRM.
In addition, Citi regularly engages third parties globally to
assess, audit and/or exercise Citi’s cyber and information
security program, which is ISO-27001 certified. ISO-27001 is
an international standard for information security management
systems. Citi is regulated by bodies across the globe that also
regularly examine and audit Citi’s cyber and information
security program against local laws, regulations and industry
best practices.
120
Board Governance
Citigroup’s Board of Directors and its committees provide
oversight of senior management’s efforts to mitigate
cybersecurity risk and respond to cybersecurity incidents.
Citi’s Board includes members with cybersecurity expertise
and experience.
Citigroup’s full Board is briefed annually on
cybersecurity risks and receives updates as needed on Citi’s
cyber and information security program, including changes to
the threat landscape and a roadmap for progress around
addressing related risks. Additionally, Citigroup’s Board
participates in cybersecurity exercises to improve
preparedness to address cybersecurity incidents.
The Board’s Technology Committee receives quarterly
updates from the Chief Information Security Office on the
cybersecurity threat landscape, regulatory landscape, posture,
and strategy and engages in discussions throughout the year
with senior management and subject matter experts on the
effectiveness of Citi’s overall cybersecurity program.
The Board’s Risk Management Committee (RMC)
approved a standalone Cybersecurity Risk Appetite Statement
against which Citi’s performance is measured quarterly. In
addition, the RMC oversees Citi’s risk profile, which includes
cybersecurity risk, and monitors whether Citi is operating
within its cybersecurity risk appetite under its mandate to
review key operational risks, including steps taken by
management to control such risks.
In the event of a potentially material cybersecurity
incident impacting Citi, the Board would be made aware of
such incident via lines of communication that run from the
Chief Information Security Office to senior management and
also to the Board. This contemporaneous reporting on
significant cyber events includes information and discussion
around incident response, legal obligations (including
disclosure), and outreach and notification to regulators and
customers when needed.
For additional information on the Board’s oversight of
cybersecurity risk management, see Citi’s upcoming 2025
Annual Meeting Proxy Statement to be filed with the SEC in
March 2025.
COMPLIANCE RISK
Compliance risk is the risk to current or projected financial
condition and resilience arising from violations of laws, rules
or regulations, or from non-conformance with prescribed
practices, internal policies and procedures or ethical standards.
Compliance risk exposes Citi to fines, civil money penalties,
payment of damages and the voiding of contracts. Compliance
risk can result in diminished reputation, harm to Citi’s
customers, limited business opportunities and lessened
expansion potential. It encompasses the risk of noncompliance
with all laws and regulations, as well as prudent ethical
standards and some contractual obligations. It could also
include exposure to litigation (known as legal risk) from all
aspects of traditional and non-traditional banking.
Citi seeks to operate with integrity, maintain strong
ethical standards and adhere to applicable policies and
regulatory and legal requirements. Citi must maintain and
execute a proactive Compliance Risk Management (CRM)
Framework (as set forth in the CRM Policy) that is designed to
manage compliance risk effectively across Citi, with a view to
fundamentally strengthen the compliance risk management
culture across the lines of defense taking into account Citi’s
risk governance framework and regulatory requirements.
Independent Compliance Risk Management’s (ICRM)
primary objectives are to:
•
Drive and embed a culture of compliance and control
throughout Citi;
•
Maintain and oversee an integrated CRM Framework that
facilitates enterprise-wide compliance with local, national
or cross-border laws, rules or regulations, Citi’s internal
policies, standards and procedures and relevant standards
of conduct;
•
Assess compliance risks and issues across product lines,
functions and geographies, supported by globally
consistent systems and compliance risk management
processes; and
•
Provide compliance risk data aggregation and reporting
capabilities.
Citi carries out its objectives and fulfills its
responsibilities through the CRM Framework, which is
composed of the following integrated key activities, to
holistically manage compliance risk:
•
Management of Citi’s compliance with laws, rules and
regulations by identifying and analyzing changes,
assessing the impact and implementing appropriate
policies, processes and controls;
•
Developing and providing compliance training to ensure
employees are aware of and understand the key laws,
rules and regulations;
•
Monitoring the Compliance Risk Appetite, which is
articulated through qualitative compliance risk statements
describing Citi’s appetite for certain types of risk and
quantitative measures to monitor the Company’s
compliance risk exposure;
•
Executing Compliance Risk Assessments, the results of
which inform Compliance Risk Monitoring and testing of
compliance risks and controls in assessing conformance
with laws, rules, regulations and internal policies; and
•
Issue identification, escalation and remediation to drive
accountability, including measurement and reporting of
compliance risk metrics against established thresholds in
support of the CRM Policy and Compliance Risk
Appetite.
To anticipate, control and mitigate compliance risk, Citi
has established the CRM Policy to achieve standardization and
centralization of methodologies and processes, and to enable
more consistent and comprehensive execution of compliance
risk management.
Citi has a commitment, as well as an obligation, to
identify, assess and mitigate compliance risks associated with
its businesses and functions. ICRM is responsible for
oversight of Citi’s CRM Policy, while all businesses and
global control functions are responsible for managing their
compliance risks and operating within the Compliance Risk
Appetite.
121
As discussed above, Citi is working to address the FRB
and OCC Consent Orders and the OCC’s 2024 Consent Order
Amendment, which include improvements to Citi’s CRM
Framework and its enterprise-wide application (see “Citi’s
Multiyear Transformation—FRB and OCC Consent Orders
Compliance” above).
REPUTATION RISK
Citi’s reputation is a vital asset in building trust, and Citi is
diligent in enhancing and protecting its reputation with its key
stakeholders. To support this, Citi has developed a reputation
risk framework. Under this framework, Citigroup and
Citibank, N.A. have implemented a risk appetite statement and
related key indicators to monitor corporate activities and
operations relative to Citi’s risk appetite. The framework also
requires that business segments escalate potential material
reputation risks that require review or mitigation through the
applicable business Management Forum or Group Reputation
Risk Committee.
The Group Reputation Risk Committee and Management
Forums, which are composed of Citi’s senior executives,
govern the process by which material reputation risks are
identified, measured, monitored, controlled, escalated and
reported. The Group Reputation Risk Committee and
Management Forums determine the appropriate actions to be
taken in line with risk appetite and regulatory expectations,
while promoting a culture of risk awareness and high
standards of integrity and ethical behavior across the
Company, consistent with Citi’s Mission and Value
Proposition. The Group Reputation Risk Committee may
escalate reputation risks to the Nomination, Governance and
Public Affairs Committee or other appropriate committee of
the Citigroup Board of Directors.
Every Citi employee is responsible for safeguarding Citi’s
reputation, guided by Citi’s Code of Conduct. Employees are
expected to exercise sound judgment and common sense in
decisions and actions. They are also expected to promptly
escalate all issues that present material reputation risk in line
with policy.
STRATEGIC RISK
As discussed above, strategic risk is the risk of a sustained
impact (not episodic impact) to Citi’s core strategic objectives
as measured by impacts on anticipated earnings, market
capitalization or capital, arising from external factors affecting
the Company’s operating environment, as well as the risks
associated with defining and executing the strategy, which are
identified, measured and managed as part of the Strategic Risk
Framework at the Enterprise Level.
In this context, external factors affecting Citi’s operating
environment are the economic environment, geopolitical/
political landscape, industry/competitive landscape,
environmental, customer/client behavior, regulatory/legislative
environment and trends related to investors/shareholders.
Material strategic risks that Citi is monitoring include the
impacts of adverse changes in inflation and interest rates in the
U.S., as well as macroeconomic uncertainties driven by weak
global growth, tariffs and geopolitical issues, including the
Middle East conflict, the Russia–Ukraine war and U.S.–China
tensions, and increased regulatory requirements. In addition to
external factors affecting Citi’s operating environment, Citi
also monitors risks related to the execution of its strategy, with
heightened focus on delivering the transformation of its risk
and control environment pursuant to the 2020 FRB and OCC
Consent Orders and the 2024 Amendment to the OCC’s
Consent Order.
Citi’s Executive Management Team is responsible for the
development and execution of Citi’s strategy. This strategy is
translated into forward-looking plans (collectively Citi’s
Strategic Plan) that are then cascaded across the organization.
Citi’s Strategic Plan is presented to the Board on an annual
basis, and is aligned with risk appetite thresholds and includes
a risk assessment as required by internal frameworks. It is also
aligned with limit requirements for capital allocation.
Governance and oversight of strategic risk is facilitated by
internal committees on a group-wide basis.
Citi works to ensure that strategic risks are adequately
considered and addressed across its various risk management
activities, and that strategic risks are assessed in the context of
Citi’s risk appetite. Citi conducts a top-down, bottom-up risk
identification process to identify risks, including strategic
risks. Business segments undertake a quarterly risk
identification process to systematically identify and document
all material risks faced by Citi. Independent Risk Management
oversees the risk identification process through regular
reviews and coordinates identification and monitoring of top
risks. In addition, Citi performs a quarterly Risk Assessment
of the Plan (RAOP) and continuously monitors risks
associated with its execution of strategy. Independent Risk
Management also manages strategic risk by monitoring risk
appetite thresholds in conjunction with its Global Strategic
Risk Committee, which is part of the governance structure that
Citi has in place to manage its strategic risks.
For additional information on Citi’s strategic risks, see
“Risk Factors—Strategic Risks” above.
Climate Risk
Climate change presents near- and long-term risks to Citi and
its clients and customers, with the risks expected to increase
over time. Climate risk refers to the risk of loss arising from
climate change and comprises both physical risk and transition
risk.
Climate risk is an overarching risk that can act as a driver
of other categories of risk, such as credit risk from obligors
exposed to high climate risk, strategic risks if Citi fails to
consider transition risk in client selection, reputational risk
from increased stakeholder concerns about financing or failing
to finance high-carbon industries and operational risk from
physical risks to Citi’s facilities. Citi continues to make
progress toward embedding climate-related considerations into
its overarching risk management approach, driven by the
materiality of the financial and strategic risk considerations.
For additional information on climate risk, see “Risk Factors
—Strategic Risks” above.
Citi continues to develop globally consistent principles
and approaches for managing climate risk across the Company
through its Climate Risk Management Framework (Climate
RMF). The Climate RMF provides information on the
governance, roles and responsibilities, and principles to
122
support the identification, measurement, monitoring,
controlling and reporting of climate risks.
Citi continues to enhance its methodologies for
quantifying how climate risks could impact the individual
credit profiles of its clients across various sectors. Citi has
developed and embedded sector-specific climate risk
assessments in its credit underwriting process for certain
sectors that have been identified as higher climate risk. Such
climate risk assessments are designed to incorporate publicly
available client disclosures and data from third-party providers
and facilitate conversations with clients on their most material
climate risks and management plans for adaptation and
mitigation. These assessments help Citi to better understand its
clients’ businesses and climate-related risks, and support their
financial needs.
Citi also reviews factors related to climate risk associated
with financed projects and clients in certain sectors under its
Environmental and Social Risk Management (ESRM) Policy.
Citi’s ESRM Policy describes sector approaches to certain
high-carbon sectors, including thermal coal mining and power.
Furthermore, Citi participates in financial industry and
regulatory initiatives that inform the measurement and
assessment of potential financial risks of climate change,
including scenario analysis. Citi also continues to monitor and
actively engage with regulators on climate risk and sustainable
finance developments.
For additional information about sustainability at Citi, see
“Net Zero and Sustainability” above.
123
OTHER RISKS
Country Risk
Top 25 Country Exposures
The following table presents Citi’s top 25 exposures by
country (excluding the U.S.) as of December 31, 2024.
(Including the U.S., Citi’s top 25 exposures by country would
represent approximately 98% of Citi’s exposure to all
countries as of December 31, 2024.)
For purposes of the table, loan amounts are reflected in
the country where the loan is booked, which is generally based
on the domicile of the borrower. For example, a loan to a
Chinese subsidiary of a Switzerland-based corporation will
generally be categorized as a loan in China. In addition, Citi
has developed regional booking centers in certain countries,
most significantly in the United Kingdom (U.K.) and Ireland,
in order to more efficiently serve its corporate customers. As
an example, with respect to the U.K., only 43% of corporate
loans presented in the table below are to U.K. domiciled
counterparties (47% for unfunded commitments), with the
balance of the loans predominately to counterparties domiciled
in other European countries. Approximately 90% of the total
U.K. funded loans and 87% of the total U.K. unfunded
commitments were investment grade as of December 31,
2024.
Trading account assets and investment securities are
generally categorized based on the domicile of the issuer of
the security of the underlying reference entity. For additional
information on the assets included in the table, see the
footnotes to the table below.
For additional information on Citi’s country exposure, see
“FFIEC—Cross-Border Claims on Third Parties and Local
Country Assets” below.
In billions of
dollars
Services,
Markets
and
Banking
loans
Wealth
loans(1)
Legacy
Franchises
loans
Other
funded(2)
Unfunded(3)
Net MTM
on
derivatives/
repos(4)
Total
hedges
(on loans
and
CVA)
Investment
securities(5)
Trading
account
assets(6)
Total
as of
4Q24
Total
as of
3Q24
Total
as of
4Q23(7)
Total
as a %
of Citi
as of
4Q24
United
Kingdom
$
38.1 $
4.6 $
— $
2.6 $
43.4 $
15.1 $
(4.5) $
6.7 $
3.2 $ 109.2 $ 109.5 $ 104.8
6.2 %
Mexico
9.4
0.1
23.1
0.3
6.7
8.4
(3.4)
19.8
1.0
65.4
64.7
72.4
3.7
Ireland
15.9
—
—
0.9
44.6
0.2
(0.2)
—
0.6
62.0
56.9
51.7
3.5
Hong Kong
11.4
21.5
—
0.3
4.9
1.4
(0.5)
10.6
0.6
50.2
50.9
44.2
2.8
Singapore
12.3
17.4
—
0.3
5.8
1.2
(0.5)
5.5
0.7
42.7
43.4
43.7
2.4
India
9.1
—
—
0.3
3.5
2.5
(0.4)
8.5
1.9
25.4
26.1
22.4
1.4
Brazil
12.0
—
—
—
2.7
5.0
(0.6)
4.7
1.4
25.2
27.3
33.3
1.4
United Arab
Emirates
7.2
1.5
—
0.6
5.1
0.2
(0.3)
5.3
—
19.6
17.3
17.3
1.1
South Korea
2.5
—
3.2
—
1.1
1.2
(0.5)
6.7
3.4
17.6
18.9
18.4
1.0
Canada
1.3
1.3
—
0.1
6.1
3.3
(1.4)
2.9
3.6
17.2
14.6
14.3
1.0
Poland
3.3
—
1.5
—
3.8
0.3
(0.2)
6.3
1.3
16.3
15.6
15.1
0.9
Japan
1.9
—
—
0.1
3.5
6.1
(1.7)
4.6
0.8
15.3
16.6
14.4
0.9
China
5.3
—
—
0.5
0.9
1.2
(1.1)
8.1
(0.2)
14.7
15.7
18.9
0.8
Australia
6.2
0.1
—
—
5.0
1.8
(0.8)
0.9
0.6
13.8
14.7
15.0
0.8
Jersey
2.5
2.2
—
—
6.2
—
—
—
—
10.9
12.1
11.6
0.6
Germany
0.4
—
—
0.1
6.8
6.2
(3.8)
6.7
(5.5)
10.9
10.6
21.5
0.6
Taiwan
4.2
—
—
—
0.5
0.4
(0.1)
0.8
(0.3)
5.5
5.5
4.4
0.3
Malaysia
1.5
—
—
0.1
0.8
0.1
(0.2)
2.8
0.1
5.2
5.6
5.3
0.3
Luxembourg
—
1.1
—
—
—
0.2
(0.4)
3.9
0.2
5.0
5.0
5.1
0.3
Thailand
1.0
—
—
0.1
0.5
—
—
2.6
0.6
4.8
5.1
3.7
0.3
Indonesia
1.7
—
—
—
0.4
—
(0.1)
2.2
0.6
4.8
5.1
4.5
0.3
South Africa
1.6
—
—
—
0.6
0.3
(0.2)
2.2
0.2
4.7
4.8
4.4
0.3
Czech Republic
0.9
—
—
—
0.7
1.5
—
1.3
0.1
4.5
4.5
5.2
0.3
Philippines
0.6
—
—
—
0.2
1.6
(0.5)
2.1
0.5
4.5
3.3
4.3
0.3
Spain
0.4
—
—
—
2.6
0.3
(1.2)
—
1.7
3.8
3.9
2.7
0.2
Total as a % of Citi’s total exposure
31.7 %
Total as a % of Citi’s non-U.S. total exposure
91.5 %
(1)
Wealth loans reflect funded corporate loans and Private Bank loans, net of unearned income. As of December 31, 2024, Private Bank loans in the table above
totaled $18.6 billion, concentrated in Hong Kong ($5.9 billion), Singapore ($4.8 billion) and the U.K. ($3.8 billion).
(2)
Other funded includes Legacy Franchises and other direct exposures such as accounts receivable, loans HFS, other loans in Corporate/Other and investments
accounted for under the equity method.
124
(3)
Unfunded exposure includes unfunded corporate lending commitments, letters of credit and other contingencies.
(4)
Net mark-to-market (MTM) counterparty risk on OTC derivatives and securities lending/borrowing transactions (repos). Exposures are net of collateral and
inclusive of CVA. Also includes margin loans.
(5)
Investment securities include debt securities AFS, recorded at fair market value, and debt securities HTM, recorded at amortized cost.
(6)
Trading account assets are on a net basis and include issuer risk on cash products and derivative exposure where the underlying reference entity/issuer is located in
that country.
(7)
As of December 31, 2023, $0.3 billion of All Other—Legacy Franchises loans were reclassified to HFS as a result of Citi’s agreement to sell its credit card
portfolio in China. There were no such balances to report as of December 31, 2024 or September 30, 2024. See “All Other—Legacy Franchises” above and Note
2.
Russia
Overview
Citi previously ended nearly all of the institutional banking
services it offered in Russia and ceased soliciting any new
business or new clients in the country, with the remaining
services only those necessary to fulfill its remaining legal and
regulatory obligations, as well as support its employees.
Citi’s net investment in Russia was less than $0.1 billion
as of December 31, 2024 (down from $0.2 billion at
September 30, 2024). The decrease in the net investment was
driven by increases in transfer risk associated with safety and
soundness considerations under U.S. banking law, partially
offset by an increase in interest income and custody revenue
during the quarter. For more information on transfer risk
reserves, see “Significant Accounting Policies and Significant
Estimates—Citi’s Allowance for Credit Losses (ACL)” below.
In addition, Citi significantly reduced its All Other—
Legacy Franchises consumer loan portfolio in Russia (reported
as part of Asia Consumer), largely due to loan portfolio sales
and its entry into a credit card referral agreement with a
Russian bank. For additional information, see “Citi’s Wind-
Down of Its Russia Operations” below.
Citi’s remaining operations are conducted through
Services, Markets, Banking and All Other—Legacy
Franchises. Citi continues to monitor the war in Ukraine,
related sanctions and economic conditions and continues to
mitigate its Russia exposures and risks as appropriate.
For additional information about Citi’s risks related to its
Russia exposures, see “Risk Factors—Market-Related Risks,”
“—Operational Risks” and “—Other Risks” above.
Impact of the Russia–Ukraine War on Citi’s Businesses
Russia-related Balance Sheet Exposures
Citi’s remaining domestic operations in Russia are conducted
through a subsidiary of Citibank, AO Citibank, which uses the
Russian ruble as its functional currency.
The following table summarizes Citi’s and its clients’ Russia-related exposures:
In billions of U.S. dollars
December 31,
2024
September 30,
2024
December 31,
2023
Change 4Q24
vs. 3Q24
Loans
$
— $
— $
0.1 $
—
Investment securities(1)
0.1
0.2
0.4
(0.1)
Net MTM on derivatives/repos
—
—
0.9
—
Cash on deposit and placements(2)
1.4
1.3
0.4
0.1
Additional exposures to Russian counterparties that are not held by
the Russian subsidiary
0.1
0.1
0.1
—
Total Citi exposure
$
1.6 $
1.6 $
1.9 $
—
Deposit Insurance Agency (DIA)(3)
$
7.2 $
5.8 $
3.9 $
1.4
Net MTM on derivatives/repos
—
—
0.5
—
Cash on deposit and placements(2)
0.2
1.7
0.3
(1.5)
Total clients’ exposure(4)
$
7.4 $
7.5 $
4.7 $
(0.1)
Total Citi and clients’ Russia-related exposure(5)
$
9.0 $
9.1 $
6.6 $
(0.1)
(1)
Investment securities include debt securities AFS, recorded at fair market value, primarily local government debt securities.
(2)
Cash on deposit and placements are primarily with the Central Bank of Russia. Due to sanctions restrictions, as well as Citi being unable to enter into reverse
repos beginning in the third quarter of 2024, any excess liquidity is placed with the Central Bank of Russia.
(3)
Represents dividends relating to Russian securities held by Citi in its role as custodian for clients in Russia, which Citi is required by local regulation to hold at the
DIA. Citi is unable to remit these funds, which are held at clients’ risk, to these clients due to restrictions imposed by the Russian government.
(4)
Clients’ exposure of $7.4 billion as of December 31, 2024, primarily consists of corporate dividends that Citi cannot remit to its clients due to restrictions imposed
by the Russian government and are held with the DIA.
(5)
Citigroup’s CTA loss of $1.6 billion as of December 31, 2024 included in its AOCI related to its indirect subsidiary, AO Citibank, and $0.9 billion of
intercompany liabilities owed by AO Citibank to other Citi entities outside Russia are excluded from the above table. Citi has separately described these amounts
in “Deconsolidation Risk” below.
125
During the fourth quarter of 2024, Citi’s Russia-related
exposures remained unchanged at $1.6 billion at December 31,
2024. Total clients’ exposures decreased $0.1 billion to $7.4
billion, primarily driven by depreciation of the Russian ruble,
partially offset by inflows from dividends received from
Russian corporations on behalf of Citi’s clients. As discussed
in the table above, clients’ exposures primarily consist of
corporate dividends that Citi cannot remit to its clients due to
restrictions imposed by the Russian government and are held
with the DIA at clients’ risk.
Citi hedges its Russian ruble/U.S. dollar spot FX exposure
in AOCI through the purchase of FX derivatives. The ongoing
mark-to-market of the hedging derivatives is also reported in
AOCI. When the Russian ruble depreciates against the U.S.
dollar, the U.S. dollar equivalent value of Citigroup’s
investment in AO Citibank also declines. This change in value
is offset by the change in value of the hedging instrument (FX
derivative). Going forward, Citi may record devaluations on
its net ruble-denominated assets in earnings, without the
benefit from a change in the fair value of derivative positions
used to economically hedge the exposures.
Earnings and Other Impacts on Citi’s Businesses
Services, Markets, Banking and All Other—Legacy Franchises
results have been impacted by various macroeconomic factors
and volatilities, including the war in Ukraine and its direct and
indirect impacts on the European and global economies. For a
broader discussion of the impacts of these factors and
volatilities on Citi’s businesses, see “Executive Summary” and
each business’s results of operations above.
As of December 31, 2024, Citigroup’s ACL included less
than $0.1 billion of remaining credit reserves for Citi’s direct
Russian counterparties (largely unchanged from September
30, 2024). This balance does not include the additional
reserves for transfer risk associated with exposures in Russia.
Citi’s Wind-Down of Its Russia Operations
In August 2022, Citi disclosed its decision to wind down its
Russia consumer, local commercial and institutional banking
businesses, including actively pursuing portfolio sales. In
connection with this wind-down, Citi has incurred
approximately $73 million to date in charges, largely from
restructuring, vendor termination fees and other related
charges. Citi expects to incur an additional approximate $30
million in estimated charges (in All Other, excluding the
impact from any portfolio sales). For additional information
about Citi’s continued efforts to reduce its operations and
exposure in Russia, see “Risk Factors” above and Note 2.
Deconsolidation Risk
Citi’s remaining operations in Russia subject it to various
risks, including, among others, foreign currency volatility,
including appreciation or devaluation; restrictions arising from
retaliatory Russian laws and regulations on the conduct of its
business; sanctions or asset freezes; or other deconsolidation
events (see “Risk Factors—Other Risks” above).
As of December 31, 2024, Citi continued to consolidate
AO Citibank because none of the deconsolidation factors were
triggered. Examples of factors that may result in
deconsolidation of AO Citibank include voluntary or forced
sale of ownership or loss of control due to actions of relevant
governmental authorities, including expropriation (i.e., the
entity becomes subject to the complete control of a
government, court, administrator, trustee or regulator);
revocation of banking license; and loss of ability to elect a
board of directors or appoint members of senior management.
In the event Citi deems there is a loss of control, for
example, through expropriation of AO Citibank, Citi would be
required to (i) write off the net investment of less than $0.1
billion (compared to $0.2 billion as of September 30, 2024),
(ii) recognize a CTA loss of approximately $1.6 billion
(unchanged from September 30, 2024) through earnings and
(iii) recognize a loss of $0.9 billion (a $0.2 billion increase
from September 30, 2024) on intercompany liabilities owed by
AO Citibank to other Citi entities outside Russia. In the sole
event of a substantial liquidation, as opposed to a loss of
control, Citi would be required to recognize the CTA loss of
approximately $1.6 billion through earnings and would
evaluate its remaining net investment as circumstances evolve.
The $1.6 billion CTA write-off through earnings under either
event is expected to be largely equity neutral, since the
reversal of the CTA loss out of AOCI would improve Citi’s
total AOCI.
Citi as Paying Agent for Russia-related Clients
Citi serves or served as paying agent on bonds issued by
various entities in Russia, including Russian corporate clients.
Citi’s role as paying agent is administrative. In this role, Citi
acts as an agent of its client, the bond issuer, receiving interest
and principal payments from the bond issuer and then making
payments to international central securities depositories (e.g.,
Depository Trust Company, Euroclear, Clearstream). The
international central securities depositories (ICSDs) make
payments to those participants or account holders (e.g., broker/
dealers) that have clients who are investors in the applicable
bonds (i.e., bondholders). As a paying agent, Citi generally
does not have information about the identity of the
bondholders. Citi may be exposed to risks due to its
responsibilities for receiving and processing payments on
behalf of its clients as a result of sanctions or other
governmental requirements and prohibitions. To mitigate
operational and sanctions risks, Citi has established policies,
procedures and controls for client relationships and payment
processing to help ensure compliance with U.S., U.K., EU and
other jurisdictions’ sanctions laws.
These processes may require Citi to delay or withhold the
processing of payments as a result of sanctions on the bond
issuer. Citi is also prevented from making payments to
accounts on behalf of bondholders should the ICSDs disclose
126
to Citi the presence of sanctioned bondholders. In both
instances, Citi is generally required to segregate, restrict or
block the funds until applicable sanctions are lifted or the
payments are otherwise authorized under applicable law.
Reputational Risks
Citi has continued its efforts to enhance and protect its
reputation with its employees, clients, customers, investors,
regulators and the public. Citi’s response to the war in
Ukraine, including any action or inaction, may have a negative
impact on Citi’s reputation with some or all of these parties.
For example, Citi is exposed to reputational risk as a
result of its remaining presence in Russia and association with
Russian individuals or entities, whether subject to sanctions or
not, including Citi’s inability to support its global clients in
Russia, which could adversely affect its broader client
relationships and businesses; current involvement in
transactions or supporting activities involving Russian assets
or interests; failure to correctly interpret and apply laws and
regulations, including those related to sanctions; perceived
misalignment of Citi’s actions to its stated strategy in Russia;
and the reputational impact from Citi’s activity and
engagement with Ukraine or with non-Russian clients exiting
their Russia businesses.
While Citi announced its intention to wind down its
businesses in Russia, Citi will continue to manage those
operations during the wind-down process and will be required
to maintain certain limited operations to fulfill its remaining
legal and regulatory obligations. Also, sanctions and sanctions
compliance are highly complex and may change over time and
result in increased operational risk. Failure to fully comply
with relevant sanctions or the application of sanctions where
they should not be applied may negatively impact Citi’s
reputation. In addition, Citi currently performs services for,
conducts business with or deals in non-sanctioned Russian-
owned businesses and Russian assets. This has attracted, and
will likely continue to attract, negative attention, despite the
previously disclosed plan to wind down nearly all its activities
in the country, cessation of new business and client
originations, and reduction of other exposures.
Citi’s continued presence or divestiture of businesses in
Russia could also increase its susceptibility to cyberattacks
that could negatively impact its relationships with clients and
customers, harm its reputation, increase its compliance costs
and adversely affect its business operations and results of
operations. For additional information on operational and
cyber risks, see “Risk Factors—Operational Risks” above.
Board of Directors’ Role in Overseeing Related Risks
The Citigroup Board of Directors (Board) and the Board’s
Risk Management Committee (RMC) and its other
Committees receive regular reports from senior management
regarding global geopolitical, macroeconomic and reputational
impacts to Citi (including the war in Ukraine and its impact on
Citi’s operations in Russia and Ukraine). The reports to the
Board and its Committees from senior management who
represent the impacted businesses and the international cluster,
Independent Risk Management, Finance, Independent
Compliance Risk Management, including those individuals
responsible for sanctions compliance, and Human Resources,
have included detailed information regarding financial
impacts, impacts on capital, cybersecurity, strategic
considerations, sanctions compliance, employee assistance and
reputational risks, enabling the Board and its Committees to
properly exercise their oversight responsibilities. In addition,
senior management has provided updates to Citi’s Executive
Management Team and the Board, outside of formal meetings,
regarding cybersecurity matters (including Russia-specific
risks).
Ukraine
Citi has continued to operate in Ukraine throughout the war
through its Services, Markets and Banking businesses, serving
the local subsidiaries of multinationals, along with local
financial institutions and the public sector. Citi employs
approximately 220 people in Ukraine and their safety is Citi’s
top priority. All of Citi’s domestic operations in Ukraine are
conducted through a subsidiary of Citibank, which uses the
Ukrainian hryvnia as its functional currency. As of
December 31, 2024, Citi had $1.7 billion of direct exposures
related to Ukraine (an increase of $0.2 billion from
September 30, 2024).
Argentina
Citi operates in Argentina through Services, Markets and
Banking. As of December 31, 2024, Citi’s net investment in its
Argentine operations was approximately $1.5 billion
(compared to $1.3 billion at September 30, 2024). Citi uses the
U.S. dollar (USD) as the functional currency for its operations
in countries such as Argentina that are deemed highly
inflationary in accordance with GAAP. Citi therefore records
the impact of exchange rate fluctuations on its net Argentine
peso (ARS)–denominated assets directly in earnings. Citi uses
Argentina’s official market exchange rate to remeasure its net
ARS-denominated assets into USD. As of December 31, 2024,
the official ARS exchange rate was 1,032, which devalued by
6.3% against the USD during the fourth quarter of 2024.
The increase in Citi’s net investment in Argentina in the
fourth quarter of 2024 was largely due to earnings from Citi’s
normal onshore operations and a reserve release, driven by a
decrease in transfer risk for safety and soundness
considerations under U.S. banking law. The increase was
partially offset by FX translation losses on the net investment.
The Central Bank of Argentina (BCRA) continues to
maintain certain capital and currency controls that generally
restrict Citi’s ability to access USD in Argentina and remit
earnings from its Argentine operations. The capital and
currency controls have resulted in indirect foreign exchange
mechanisms that some Argentine entities may use to obtain
USD, generally at rates that are significantly higher than
Argentina’s official exchange rate. Citibank Argentina is
generally precluded from accessing these alternative
mechanisms, and under U.S. GAAP, these exchange
mechanisms cannot be used to remeasure Citi’s net monetary
assets into USD. If Argentina’s official exchange rate further
converges with the approximate rate implied by the indirect
foreign exchange mechanisms, Citi could incur additional
translation losses on its net investment in Argentina.
Accordingly, Citi seeks to reduce its overall ARS exposure in
127
Argentina while complying with local capital and currency
exposure limitations.
Of the $1.5 billion net investment in Argentina as of
December 31, 2024, Citi’s net ARS exposure was
approximately $1.1 billion (compared to $0.9 billion as of
September 30, 2024). Citi’s net ARS exposure is less than its
total net investment in Argentina as a result of Citi holding
approximately $175 million of USD-denominated loans as
well as approximately $200 million of certain local
government bonds that are USD denominated. If Citi had not
invested in such instruments to reduce its ARS exposure, Citi
would have recognized additional translation losses during the
fourth quarter of 2024. Given current economic conditions and
the local capital, currency and regulatory limitations, Citi
cannot guarantee the availability or effectiveness of such
mechanisms to reduce its ARS exposure in the future.
In addition to reducing the ARS exposure, Citi also seeks
to economically hedge the exposure to the extent possible and
prudent using non-deliverable forward (NDF) derivative
instruments that are primarily executed outside of Argentina.
As of December 31, 2024, Citi hedged approximately $0.4
billion of its ARS exposure through offshore hedges, including
NDF derivative instruments. Citi was unable to hedge its
remaining ARS exposure, given the illiquidity of the offshore
NDF market. To the extent that Citi is unable to execute or
renew NDF contracts in the future, Citi would record
devaluations on its net ARS-denominated assets in earnings,
without any benefit from a change in the fair value of such
derivative positions used to economically hedge the exposure.
Citi cannot predict the availability of hedging instruments in
the future nor can it predict changes in foreign exchange rates
and the resulting impact on earnings.
Citi continually evaluates its economic exposure to its
Argentine counterparties and reserves for changes in credit
risk and records mark-to-market adjustments for relevant
market risks associated with its Argentine assets. Citi believes
it has established an appropriate ACL on its Argentine loans,
and appropriate fair value adjustments on Argentine assets and
liabilities measured at fair value, for credit and sovereign risks
under U.S. GAAP as of December 31, 2024. For additional
information on Citi’s emerging markets risks, including those
related to its Argentine exposures, see “Risk Factors—
Strategic Risks” above.
FFIEC—Cross-Border Claims on Third Parties and Local
Country Assets
Citi’s cross-border disclosures are presented below, based on
the country exposure bank regulatory reporting guidelines of
the Federal Financial Institutions Examination Council
(FFIEC). The following summarizes some of the key FFIEC
reporting guidelines:
•
Amounts are based on the domicile of the ultimate
obligor, counterparty, collateral (only including qualifying
liquid collateral), issuer or guarantor, as applicable (e.g., a
security recorded by a Citi U.S. entity but issued by the
U.K. government is considered U.K. exposure; a loan
recorded by a Citi Mexico entity to a customer domiciled
in Mexico where the underlying collateral is held in
Germany is considered German exposure).
•
Amounts do not consider the benefit of collateral received
for secured financing transactions (i.e., repurchase
agreements, reverse repurchase agreements and securities
loaned and borrowed) and are reported based on notional
amounts.
•
Netting of derivative receivables and payables, reported at
fair value, is permitted, but only under a legally binding
netting agreement with the same specific counterparty,
and does not include the benefit of margin received or
hedges.
•
Credit default swaps (CDS) are included based on the
gross notional amount sold and purchased and do not
include any offsetting CDS on the same underlying entity.
•
Loans are reported without the benefit of hedges.
Given the requirements noted above, Citi’s FFIEC cross-
border exposures and total outstandings tend to fluctuate, in
some cases significantly, from period to period. As an
example, because total outstandings under FFIEC guidelines
do not include the benefit of margin or hedges, market
volatility in interest rates, foreign exchange rates and credit
spreads may cause significant fluctuations in the level of total
outstandings, all else being equal.
128
The tables below present each country whose total outstandings exceeded 0.75% of total Citigroup assets:
December 31, 2024
Cross-border claims on third parties and local country assets
In billions of dollars
Banks
(a)
Public
(a)
NBFIs(1)
(a)
Other
(corporate
and households)
(a)
Trading
assets(2)
(included
in (a))
Short-term
claims(2)
(included in
(a))
Total
outstanding(3)
(sum of (a))
Commitments
and
guarantees(4)
Credit
derivatives
purchased(5)
Credit
derivatives
sold(5)
United Kingdom $ 6.0 $ 30.2 $
34.3 $
18.4 $
13.7 $
69.6 $
88.9 $
28.0 $
52.8 $
50.6
Mexico
4.5 29.2
15.7
35.2
2.3
44.7
84.7
24.0
5.3
4.1
Cayman Islands
—
—
67.6
8.0
4.9
42.4
75.6
25.0
1.1
1.2
Japan
21.5 28.8
13.4
5.0
8.7
43.5
68.8
17.6
14.4
12.8
France
17.7 14.8
11.9
6.8
11.1
29.9
51.2
75.1
47.5
45.1
Singapore
1.3 20.0
7.5
16.7
1.7
36.8
45.5
17.3
0.4
0.3
Germany
2.9 21.4
7.6
6.7
7.8
24.3
38.6
14.1
36.7
33.8
Hong Kong
1.5 12.6
3.2
20.9
2.4
33.5
38.2
11.5
0.8
0.7
South Korea
5.4 18.5
4.0
9.5
8.2
28.1
37.3
6.2
3.5
2.6
India
2.1 17.3
5.5
11.2
5.8
27.1
36.1
3.7
0.5
0.3
Brazil
2.8 14.9
4.6
13.1
5.5
29.8
35.5
2.6
4.0
3.6
China
4.1 15.4
5.1
10.3
11.7
27.9
34.9
2.3
6.3
4.4
Canada
3.3 12.9
9.1
4.9
5.0
25.1
30.1
10.8
5.2
5.0
Netherlands
2.8 16.2
3.8
6.6
4.6
24.9
29.5
10.0
22.8
21.4
Ireland
0.1
4.1
11.7
3.6
1.5
18.3
19.4
11.1
2.6
2.4
Australia
1.3
6.0
8.7
3.3
2.6
16.0
19.2
4.8
1.6
1.5
Switzerland
1.3
9.8
1.6
5.2
2.4
16.5
17.9
8.2
13.6
12.2
December 31, 2023
Cross-border claims on third parties and local country assets
In billions of dollars
Banks
(a)
Public
(a)
NBFIs(1)
(a)
Other
(corporate
and households)
(a)
Trading
assets(2)
(included
in (a))
Short-term
claims(2)
(included in
(a))
Total
outstanding(3)
(sum of (a))
Commitments
and
guarantees(4)
Credit
derivatives
purchased(5)
Credit
derivatives
sold(5)
Cayman Islands
$
— $
— $ 153.3 $
9.4 $
5.2 $
129.3 $
162.7 $
28.6 $
1.5 $
1.5
United Kingdom
5.5 23.8
43.7
19.5
11.9
59.8
92.5
29.9
63.2
62.4
Japan
29.8 29.6
19.9
8.3
16.3
61.1
87.6
12.8
14.1
11.9
Mexico
3.1 32.8
11.8
36.2
2.9
45.1
83.9
27.1
5.9
4.7
Germany
3.7 39.8
16.1
8.6
10.7
46.2
68.2
24.0
42.3
40.7
France
17.2 11.2
22.7
7.6
11.0
42.4
58.7
67.4
53.9
53.0
Singapore
1.9 18.7
8.8
17.1
1.6
38.6
46.5
17.9
0.9
0.8
Hong Kong
2.5 13.1
3.3
21.3
3.8
35.1
40.2
12.0
1.8
1.6
South Korea
5.3 17.2
4.9
12.2
7.7
30.7
39.6
9.5
5.8
4.8
Brazil
3.5 15.5
4.3
15.3
7.0
29.4
38.6
2.5
4.8
5.0
China
5.6 18.7
2.7
10.7
13.3
31.5
37.7
5.0
7.0
6.4
India
1.9 15.7
4.9
8.8
4.4
23.8
31.3
3.7
1.0
0.7
Canada
3.5 12.7
7.6
5.0
5.0
23.7
28.8
11.2
5.4
4.8
Netherlands
3.9 11.1
3.9
6.8
4.6
21.1
25.7
8.7
26.7
27.0
Australia
5.4
7.4
9.0
3.3
4.0
21.2
25.1
5.4
2.9
2.7
Ireland
0.1
3.7
14.3
3.5
2.3
20.4
21.6
7.5
2.7
2.6
Switzerland
4.9
9.2
1.1
5.2
2.6
17.3
20.4
7.9
15.6
15.0
(1)
Non-bank financial institutions.
(2)
Included in total outstanding.
(3)
Total outstanding includes cross-border claims on third parties, as well as local country assets. Cross-border claims on third parties include cross-border loans,
securities, deposits with banks and other monetary assets, as well as net revaluation gains on foreign exchange and derivative products.
(4)
Commitments (not included in total outstanding) include legally binding cross-border letters of credit and other commitments and contingencies as defined by the
FFIEC guidelines. The FFIEC definition of commitments includes commitments to local residents to be funded with local currency liabilities originated within the
country.
(5)
Credit default swaps (CDS) are not included in total outstanding.
129
SIGNIFICANT ACCOUNTING POLICIES
AND SIGNIFICANT ESTIMATES
This section contains a summary of Citi’s most significant
accounting policies. Note 1 contains a summary of all of
Citigroup’s significant accounting policies. These policies, as
well as estimates made by management, are integral to the
presentation of Citi’s results of operations and financial
condition. While all of these policies require a certain level of
management judgment and estimates, this section highlights
and discusses the significant accounting policies that require
management to make highly difficult, complex or subjective
judgments and estimates at times regarding matters that are
inherently uncertain and susceptible to change (see also “Risk
Factors—Operational Risks” above). Management has
discussed each of these significant accounting policies, the
related estimates and its judgments with the Audit Committee
of the Citigroup Board of Directors.
Valuations of Financial Instruments
Citigroup holds debt and equity securities, derivatives,
retained interests in securitizations, investments in private
equity and other financial instruments. A portion of these
assets and liabilities is reflected at fair value on Citi’s
Consolidated Balance Sheet as Trading account assets,
Available-for-sale securities and Trading account liabilities.
Citi purchases securities under agreements to resell
(reverse repos or resale agreements) and sells securities under
agreements to repurchase (repos), a substantial portion of
which is carried at fair value. In addition, certain loans, short-
term borrowings, long-term debt and deposits, as well as
certain securities borrowed and loaned positions that are
collateralized with cash, are carried at fair value. Citigroup
holds its investments, trading assets and liabilities, and resale
and repurchase agreements on Citi’s Consolidated Balance
Sheet to meet customer needs and to manage liquidity needs,
interest rate risks and private equity investing.
When available, Citi generally uses quoted market prices
to determine fair value and classifies such items within Level
1 of the fair value hierarchy established under ASC 820-10,
Fair Value Measurement. If quoted market prices are not
available, fair value is based on internally developed valuation
models that use, where possible, current market-based or
independently sourced market parameters, such as interest
rates, currency rates and option volatilities. Such models are
often based on a discounted cash flow analysis. In addition,
items valued using such internally generated valuation
techniques are classified according to the lowest level input or
value driver that is significant to the valuation. Thus, an item
may be classified under the fair value hierarchy as Level 3
even though there may be some significant inputs that are
readily observable.
Citi is required to exercise subjective judgments relating
to the applicability and functionality of internal valuation
models, the significance of inputs or drivers to the valuation of
an instrument and the degree of illiquidity and subsequent lack
of observability in certain markets. The fair value of these
instruments is reported on Citi’s Consolidated Balance Sheet
with the changes in fair value recognized in either the
Consolidated Statement of Income or in AOCI.
Losses on available-for-sale securities whose fair values
are less than the amortized cost, where Citi intends to sell the
security or could more-likely-than-not be required to sell the
security prior to recovery, are recognized in earnings. Where
Citi does not intend to sell the security nor could more-likely-
than-not be required to sell the security, any portion of the loss
that is attributable to credit is recognized as an allowance for
credit losses with a corresponding provision for credit losses,
and the remainder of the loss is recognized in AOCI. Such
losses are capped at the difference between the fair value and
amortized cost of the security.
For equity securities carried at cost or under the
measurement alternative, decreases in fair value below the
carrying value are recognized as impairment in the
Consolidated Statement of Income. Moreover, for certain
equity method investments, decreases in fair value are only
recognized in earnings in the Consolidated Statement of
Income if such decreases are judged to be an other-than-
temporary impairment (OTTI). Assessing if the fair value
impairment is temporary is also inherently judgmental.
The fair value of financial instruments incorporates the
effects of Citi’s own credit risk and the market view of
counterparty credit risk, the quantification of which is also
complex and judgmental. For additional information on Citi’s
fair value analysis, see Notes 1, 6, 26 and 27.
130
Citi’s Allowance for Credit Losses (ACL)
The table below presents Citi’s allowance for credit losses on
loans (ACLL) and total ACL as of December 31, 2024 and
2023, as well as builds and releases during 2024. For
information on the drivers of Citi’s ACL net build in the
fourth quarter of 2024, see below. See Note 1 for additional
information on Citi’s accounting policy on accounting for
credit losses under ASC Topic 326, Financial Instruments—
Credit Losses; Current Expected Credit Losses (CECL).
ACL
In millions of dollars
Balance
Dec. 31,
2023
Build (release)
2024
FX/
Other
Balance
Dec. 31,
2024
ACLL/EOP
loans Dec. 31,
2024(1)
1Q24
2Q24
3Q24
4Q24
2024
Services
$
397 $
34 $ (100) $
7 $
(71) $ (130) $
(3) $
264
Markets
820
120
(111)
37
167
213
(3)
1,030
Banking
1,376
(89)
(51)
62
(122)
(200)
(9)
1,167
Legacy Franchises corporate (Mexico SBMM
and AFG)(1)(2)
121
(8)
(12)
(3)
10
(13)
(13)
95
Total corporate ACLL
$ 2,714 $
57 $ (274) $
103 $
(16) $ (130) $
(28) $ 2,556
0.87 %
U.S. cards(3)(4)
$ 12,626 $
326 $
357 $
10 $
221 $
914 $
20 $ 13,560
7.93 %
Retail Banking
476
11
25
31
25
92
1
569
Total USPB
$ 13,102 $
337 $
382 $
41 $
246 $ 1,006 $
21 $ 14,129
Wealth
767
(190)
(43)
8
(11)
(236)
(2)
529
All Other consumer—managed basis(1)
1,562
(85)
11
58
102
86
(288)
1,360
Reconciling Items(1)
—
—
—
—
—
—
—
—
Total consumer ACLL
$ 15,431 $
62 $
350 $
107 $
337 $
856 $ (269) $ 16,018
4.08 %
Total ACLL
$ 18,145 $
119 $
76 $
210 $
321 $
726 $ (297) $ 18,574
2.71 %
Allowance for credit losses on unfunded lending
commitments (ACLUC)
$ 1,728 $
(98) $
(8) $
105 $ (118) $ (119) $
(8) $ 1,601
Total ACLL and ACLUC
$ 19,873 $
21 $
68 $
315 $
203 $
607 $ (305) $ 20,175
Other(5)
1,883
14
107
160
131
412
(293)
2,002
Total ACL
$ 21,756 $
35 $
175 $
475 $
334 $ 1,019 $ (598) $ 22,177
(1)
All Other (managed basis) excludes divestiture-related impacts (Reconciling Items) related to (i) Citi’s divestitures of its Asia Consumer businesses and (ii) the
planned IPO of Mexico Consumer/SBMM within Legacy Franchises. The Reconciling Items are fully reflected in the various line items in Citi’s Consolidated
Statement of Income. These items in the table above represent the 2024 quarterly ACL builds (releases) only. See “All Other—Divestiture-Related Impacts
(Reconciling Items)” above.
(2)
Includes Legacy Franchises corporate loans activity related to Mexico SBMM and the Assets Finance Group (AFG) (AFG was previously reported in Markets; all
periods have been reclassified to reflect this move into Legacy Franchises), as well as other Legacy Holdings Assets corporate loans.
(3)
As of December 31, 2024, in USPB, Branded Cards ACLL/EOP loans was 6.4% and Retail Services ACLL/EOP loans was 11.3%.
(4)
The December 31, 2024 ACLL balance includes approximately $20 million related to an acquired portfolio, which is also reflected in the FX/Other column in this
table.
(5)
Includes ACL on Other assets and Held-to-maturity debt securities. The ACL on Other assets includes ACL related to transfer risk associated with exposures
outside the U.S., driven by safety and soundness considerations under U.S. banking law.
Citi’s reserves for expected credit losses on funded loans
and for unfunded lending commitments, standby letters of
credit and financial guarantees are reflected on the
Consolidated Balance Sheet in the Allowance for credit losses
on loans (ACLL) and Other liabilities (for Allowance for
credit losses on unfunded lending commitments (ACLUC)),
respectively. In addition, Citi’s reserves for expected credit
losses on other financial assets carried at amortized cost,
including held-to-maturity securities, reverse repurchase
agreements, securities borrowed, deposits with banks and
other financial receivables are reflected in Other assets. These
reserves, together with the ACLL and ACLUC, are referred to
as the ACL. Changes in the ACL are reflected as Provision for
credit losses in the Consolidated Statement of Income for each
reporting period. Citi’s ability to estimate expected credit
losses over the reasonable and supportable (R&S) period is
based on the ability to forecast economic activity over a R&S
timeframe. The R&S forecast period for all loans is eight
quarters.
The ACL is composed of quantitative and qualitative
management adjustment components. The quantitative
component uses three forward-looking macroeconomic
forecast scenarios—base, upside and downside. The
qualitative management adjustment component reflects risks
and certain economic conditions not fully captured in the
quantitative component. Both the quantitative and qualitative
components are further discussed below.
131
Quantitative Component
Citi estimates expected credit losses for its quantitative
component using (i) its comprehensive internal data on loss
and default history, (ii) internal credit risk ratings, (iii)
external credit bureau and rating agencies information and (iv)
R&S forecasts of macroeconomic conditions.
For its consumer and corporate portfolios, Citi’s expected
credit losses are determined primarily by utilizing models that
consider the borrowers’ probability of default (PD), loss given
default (LGD) and exposure at default (EAD). The loss
likelihood and severity models used for estimating expected
credit losses are sensitive to changes in macroeconomic
variables, including housing prices, unemployment rate and
real GDP, and cover a wide range of geographic, industry,
product and business segments.
In addition, Citi’s models determine expected credit
losses based on leading credit indicators, including loan
delinquencies, changes in portfolio size, default frequency,
risk ratings and loss recovery rates, as well as other credit
trends.
Qualitative Component
The qualitative management adjustment component includes
risks that are not fully captured in the quantitative component.
These may include but are not limited to portfolio
characteristics, idiosyncratic events, factors not within
historical loss data or the economic forecast, uncertainty in the
credit environment and other factors as required by banking
supervisory guidance for the ACL. The primary examples of
these are the following:
•
Transfer risk associated with exposures outside the U.S.,
driven by safety and soundness considerations under U.S.
banking law
•
Potential impacts on vulnerable industries and regions due
to emerging macroeconomic risks and uncertainties,
including those related to potential global recession,
inflation, interest rates, commodity prices and geopolitical
tensions
•
Risk associated with consumer payment behavior given
the elevated inflationary and interest rate environment
As of the fourth quarter of 2024, Citi’s qualitative
component of the ACL decreased quarter-over-quarter. The
decrease was driven by factors such as a release related to
reserves for specific risks and uncertainties impacting
vulnerable industries and regions.
Macroeconomic Variables
As further discussed below, Citi considers various global
macroeconomic variables for the base, upside and downside
probability-weighted macroeconomic scenario forecasts it uses
to estimate the quantitative component of the ACL. Citi’s
forecasts of the U.S. unemployment rate and U.S. real GDP
growth rate represent the macroeconomic variables that most
significantly affect its estimate of the ACL.
The tables below present Citi’s forecasted quarterly
average U.S. unemployment rate and year-over-year U.S. real
GDP growth rate used in determining the base macroeconomic
forecast for Citi’s ACL at each quarterly reporting period from
4Q23 to 4Q24:
Quarterly average
U.S. unemployment
1Q25
3Q25
1Q26
8-quarter
average(1)
Citi forecast at 4Q23
4.3 %
4.2 %
4.2 %
4.2 %
Citi forecast at 1Q24
4.1
4.1
3.9
4.0
Citi forecast at 2Q24
4.1
4.1
3.9
4.1
Citi forecast at 3Q24
4.4
4.4
3.9
4.2
Citi forecast at 4Q24
4.2
4.3
4.1
4.2
(1)
Represents the average unemployment rate for the rolling, forward-
looking eight quarters in the forecast horizon.
Year-over-year growth rate(1)
Full year
U.S. real GDP
2024
2025
2026
Citi forecast at 4Q23
1.4 %
1.7 %
2.1 %
Citi forecast at 1Q24
2.3
1.8
2.0
Citi forecast at 2Q24
2.4
1.8
2.0
Citi forecast at 3Q24
2.6
1.8
2.0
Citi forecast at 4Q24
2.7
2.2
2.1
(1)
The year-over-year growth rate is the percentage change in the real
(inflation adjusted) GDP level.
Under the base macroeconomic forecast as of the fourth
quarter of 2024, U.S. real GDP growth is expected to slow
during 2025 and 2026, while the unemployment rate is
expected to increase in 2025, but decline in 2026.
Scenario Weighting
Citi’s ACL is estimated using three probability-weighted
macroeconomic scenarios—base, upside and downside. The
macroeconomic scenario weights are estimated using a
statistical model, which, among other factors, takes into
consideration key macroeconomic drivers of the ACL, severity
of the scenario and other macroeconomic uncertainties and
risks. Citi evaluates scenario weights on a quarterly basis.
Citi’s downside scenario incorporates more adverse
macroeconomic assumptions than the base scenario. For
example, compared to the base scenario, Citi’s downside
scenario reflects a recession, including an elevated average
U.S. unemployment rate of 6.8% over the eight-quarter R&S
period, with a peak difference of 3.4% in the second quarter of
2026. The downside scenario also reflects a year-over-year
U.S. real GDP contraction in 2025 of 1.8%, with a peak
quarter-over-quarter difference to the base scenario of 1.3%.
Citi’s ACL is sensitive to the various macroeconomic
scenarios that drive the quantitative component of expected
credit losses, due to changes in the length and severity of
forecasted economic variables or events in the respective
scenarios. Citi’s downside scenario incorporates more adverse
macroeconomic assumptions than the weighted scenario
assumptions. To demonstrate this sensitivity, if Citi applied
132
100% weight to the downside scenario as of December 31,
2024 to reflect the most severe economic deterioration forecast
in the macroeconomic scenarios, there would have been a
hypothetical incremental increase in the ACL of
approximately $5.3 billion related to lending exposures,
except for loans individually evaluated for credit losses and
other financial assets carried at amortized cost.
This analysis does not incorporate any impacts or changes
to the qualitative component of the ACL. These factors could
change the outcome of the sensitivity analysis based on
historical experience and current conditions at the time of the
assessment. Given the uncertainty inherent in macroeconomic
forecasting, Citi continues to believe that its ACL estimate
based on a three probability-weighted macroeconomic
scenario approach combined with the qualitative component
remains appropriate as of December 31, 2024.
4Q24 Changes in the ACL
As further discussed below, Citi’s ending ACL balance for the
fourth quarter of 2024 was $22.2 billion, a slight increase from
September 30, 2024. The net build of $0.3 billion in the
quarter was primarily driven by growth in cards balances in
USPB. Citi believes its analysis of the ACL reflects the
forward view of the economic environment as of December
31, 2024. See Note 16 for additional information.
Consumer Allowance for Credit Losses on Loans
Citi’s consumer ACLL is largely driven by U.S. cards
(Branded Cards and Retail Services) in USPB. Citi’s total
consumer ACLL build was $0.3 billion in the fourth quarter of
2024, primarily driven by growth in U.S. cards balances. This
resulted in a December 31, 2024 ACLL balance of $16.0
billion, or 4.08% of total funded consumer loans.
For U.S. cards, the level of reserves relative to total
funded loans decreased to 7.93% at December 31, 2024, due
to seasonal improvement, compared to 8.15% at September
30, 2024. For the remaining consumer exposures, the level of
reserves relative to total funded loans was 1.11% at December
31, 2024, compared to 1.08% at September 30, 2024.
Corporate Allowance for Credit Losses on Loans
Citi had a corporate ACLL release of less than $0.1 billion in
the fourth quarter of 2024, largely driven by a release for
specific risks and uncertainties impacting vulnerable industries
and regions in Banking and lower transfer risk associated with
exposures outside the U.S., driven by safety and soundness
considerations under U.S. banking law in Services, partially
offset by a build for changes in portfolio composition in
Markets. This resulted in a December 31, 2024 ACLL balance
of $2.6 billion, or 0.87% of total funded corporate loans.
ACLUC
Citi had an ACLUC release of $0.1 billion in the fourth
quarter of 2024, largely driven by a release for specific risks
and uncertainties impacting vulnerable industries and regions.
The ACLUC reserve balance, included in Other liabilities,
was $1.6 billion at December 31, 2024.
ACL on Other Financial Assets
Citi had an ACL build of $0.1 billion on other financial assets
carried at amortized cost for the fourth quarter of 2024,
primarily due to an increase in transfer risk associated with
unremittable corporate dividends outside the U.S. being held
on behalf of clients, driven by safety and soundness
considerations under U.S. banking law. Including FX/Other,
the ACL reserve balance of $2.0 billion remained unchanged
from September 30, 2024. See Note 16 for additional
information.
Regulatory Capital Impact
Citi elected the modified CECL transition provision for
regulatory capital purposes provided by the U.S. banking
agencies’ final rule. Accordingly, the Day One regulatory
capital effects resulting from the adoption of CECL, as well as
the ongoing adjustments for 25% of the change in CECL-
based allowances in each quarter between January 1, 2020 and
December 31, 2021, started to be phased in on January 1, 2022
and were fully reflected in Citi’s regulatory capital as of
January 1, 2025.
See Notes 1 and 16 for a further description of the ACL
and related accounts.
Goodwill
Citi tests for goodwill impairment annually as of October 1
(the annual test) and conducts interim assessments between
annual tests if an event occurs or circumstances change that
would more-likely-than-not reduce the fair value of a reporting
unit below its carrying amount. These events or circumstances
include, among other things, a significant adverse change in
the business climate, a decision to sell or dispose of all or a
significant portion of a reporting unit or a sustained decrease
in Citi’s stock price.
Citigroup’s activities were conducted through the
reportable operating segments: Services, Markets, Banking,
Wealth and USPB, with the remaining operations recorded in
All Other, which includes activities not assigned to a specific
operating segment as well as discontinued operations.
Goodwill impairment testing is performed at the level below
the operating segment (referred to as a reporting unit).
Citi performed its annual goodwill impairment test, which
resulted in no impairment of any of Citi’s reporting units’
goodwill. No additional triggering events were identified and
no goodwill was impaired during 2024. For each of the
Company’s reporting units, fair value exceeded carrying value
by at least 10%.
Citi utilizes allocated tangible common equity as a proxy
for the carrying value of its reporting units for purposes of
goodwill impairment testing. The allocated equity in the
reporting units is determined based on the capital the business
would require if it were operating as a standalone entity,
incorporating sufficient capital to be in compliance with both
current and expected regulatory capital requirements,
including capital for specifically identified goodwill and
intangible assets. The capital allocated to the reporting units is
incorporated into the annual budget process, which is
approved by Citigroup’s Board of Directors.
133
Goodwill impairment testing involves management
judgment, requiring an assessment of whether the carrying
value of a reporting unit can be supported by its fair value
using widely accepted valuation techniques, such as the
market approach (earnings multiples and/or transaction
multiples) and/or the income approach (discounted cash flow
(DCF) method). In applying these methodologies, Citi utilizes
a number of factors, including actual operating results, future
business plans, economic projections and market data.
Citi engaged an independent valuation specialist to assist
in Citi’s valuation of all the reporting units, primarily
employing both the income and market approach to determine
the fair value of the reporting units. The income approach
utilized discount rates that Citi believes adequately reflected
the risk and uncertainty in the financial markets in the
internally generated cash flow projections. The market
approach utilizes observable market data from comparable
publicly traded companies, such as price-to-earnings or price-
to-tangible book value ratios, to estimate a reporting unit’s fair
value. Management uses judgment in the selection of
comparable companies and includes those with the most
similar business activities.
The income approach employs a capital asset pricing
model in estimating the discount rate. Since none of the
Company’s reporting units are publicly traded, individual
reporting unit fair value determinations cannot be directly
correlated to Citigroup’s common stock price. The sum of the
fair values of the reporting units exceeded the overall market
capitalization of Citi as of October 1, 2024. However, Citi
believes that it is not meaningful to reconcile the sum of the
fair values of the Company’s reporting units to its market
capitalization due to several factors. The market capitalization
of Citigroup reflects the execution risk in a transaction
involving Citigroup due to its size. However, the individual
reporting units’ fair values are not subject to the same level of
execution risk or a business model that is as global. In
addition, the market capitalization of Citigroup does not
include consideration of the individual reporting unit’s control
premium.
Unanticipated declines in business performance, increases
in credit losses, increases in capital requirements and adverse
regulatory or legislative changes, as well as deterioration in
economic or market conditions, are factors that could result in
a material impairment loss to earnings in a future period
related to some portion of the associated goodwill. See Notes
1 and 17 for additional information on goodwill, including the
changes in the goodwill balance year-over-year and the
segments’ goodwill balances as of December 31, 2024.
Litigation Accruals
See the discussion in Note 30 for Citi’s policies on
establishing accruals for litigation and regulatory
contingencies.
Income Taxes
Overview
Citi is subject to the income tax laws of the U.S., its states and
local municipalities and the non-U.S. jurisdictions in which
Citi operates. These tax laws are complex and are subject to
differing interpretations by the taxpayer and the relevant
governmental taxing authorities. Disputes over interpretations
of the tax laws may be subject to review and adjudication by
the court systems of the various tax jurisdictions or may be
settled with the taxing authority upon audit.
In establishing a provision for income tax expense, Citi
must make judgments and interpretations about the application
of these inherently complex tax laws. Citi must also make
estimates about when in the future certain items will affect
taxable income in the various tax jurisdictions, both domestic
and foreign. Deferred taxes are recorded for the future
consequences of events that have been recognized in the
financial statements or tax returns, based on enacted tax laws
and rates. Deferred tax assets (DTAs) are recognized subject
to management’s judgment that realization is more-likely-
than-not. For example, if it is more-likely-than-not that a
carry-forward would expire unused, Citi would set up a
valuation allowance against that DTA. Citi has established
valuation allowances as described below.
As a result of the Tax Cuts and Jobs Act (Tax Reform),
beginning in 2018, Citi is taxed on income generated by its
U.S. operations at a federal tax rate of 21%. The effect on
Citi’s state tax rate is dependent upon how and when the
individual states that have not yet addressed the federal tax
law changes choose to adopt the various new provisions of the
U.S. Internal Revenue Code.
Citi’s non-U.S. branches and subsidiaries are subject to
tax at their local tax rates. Non-U.S. branches also continue to
be subject to U.S. taxation. The impact of this on Citi’s
earnings depends on the level of branch pretax income, the
local branch tax rate, and allocations of overall domestic loss
(ODL) and expenses for U.S. tax purposes to branch earnings.
Citi expects no residual U.S. tax on such earnings. With
respect to non-U.S. subsidiaries, dividends from these
subsidiaries will be excluded from U.S. taxation. While the
majority of Citi’s non-U.S. subsidiary earnings are classified
as global intangible low-taxed income (GILTI), Citi expects
no material residual U.S. tax on such earnings based on its
non-U.S. subsidiaries’ local tax rates, which exceed, on
average, the effective 13.125% GILTI tax rate. Finally, Citi
does not expect the base erosion anti-abuse tax (BEAT) to
affect its tax provision.
On January 4, 2022, final FTC regulations were published
in the Federal Register, which eliminate the creditability of
foreign taxes paid in certain situations. These include
countries that do not align with U.S. tax principles in
significant part and for services performed outside the
recipient country. In 2023, the IRS announced that the
effective date of these regulations was deferred until the IRS
gives notice otherwise. The impact on Citi’s effective tax rate
is not expected to be material.
134
The Inflation Reduction Act was signed into law on
August 16, 2022. The Act includes a new corporate alternative
minimum tax (AMT) and a 1% excise tax on share
repurchases, both effective January 1, 2023. The corporate
AMT is a 15% minimum tax on financial statement income
after adjusting for foreign taxes paid. Corporate AMT paid in
one year is creditable against regular corporate tax liability in
future years. Citi does not expect to pay material amounts of
corporate AMT given its profitability and tax profile.
The 1% excise tax is a non-deductible tax on the fair
market value of stock repurchased in the taxable year, reduced
by the fair market value of any stock issued in the same year.
See Note 11 for the 2024 impact on earnings per share related
to the excise tax.
Deferred Tax Assets and Valuation Allowances (VA)
At December 31, 2024, Citi had net DTAs of $29.8 billion. In
the fourth quarter of 2024, Citi’s DTAs decreased by $0.2
billion, primarily as a result of the geographic mix of earnings.
On a full-year basis, Citi’s DTAs increased by $0.2 billion
from $29.6 billion at December 31, 2023.
Of Citi’s total net DTAs of $29.8 billion as of December
31, 2024, $12.8 billion, primarily related to tax carry-
forwards, was deducted in calculating Citi’s regulatory capital.
Net DTAs arising from temporary differences are also
deducted from regulatory capital if in excess of the 10%/15%
limitations (see “Capital Resources” above). For the quarter
and year ended December 31, 2024, Citi had $3.0 billion of
disallowed temporary difference DTAs (included in the $12.8
billion above). The remaining $17.0 billion of net DTAs as of
December 31, 2024 was not deducted in calculating regulatory
capital pursuant to Basel III standards and was appropriately
risk weighted under those rules.
Citi’s total VA at December 31, 2024 was $4.3 billion, an
increase of $0.7 billion from $3.6 billion at December 31,
2023. The increase was primarily driven by the generation of
current-year FTCs in the branch basket. Citi’s VA of $4.3
billion is composed of $3.3 billion on its FTC branch basket
carry-forwards, $0.6 billion on its U.S. residual DTA related
to its non-U.S. branches, $0.3 billion on local non-U.S. DTAs
and $0.1 billion on state net operating loss carry-forwards.
As stated above with regard to the impact of non-U.S.
branches on Citi’s earnings, the level of branch pretax income,
the local branch tax rate and the allocations of ODL and
expenses for U.S. tax purposes to the branch basket are the
main factors in determining the branch VA. Additional ODL
was created in 2024 as a result of reduced taxable income.
Recognized FTC carry-forwards in the general basket
comprised approximately $0.7 billion of Citi’s DTAs as of
December 31, 2024, compared to approximately $1.2 billion
as of December 31, 2023. The decrease in FTCs year-over-
year was primarily due to current-year usage. The FTC carry-
forward period represents the most time-sensitive component
of Citi’s DTAs.
Citi had an ODL of approximately $9 billion at December
31, 2024, which allows Citi to elect a percentage between 50%
and 100% of future years’ domestic source income to be
reclassified as foreign source income. (See Note 10 for a
description of the ODL.)
The majority of Citi’s U.S. federal net operating loss
carry-forward and all of its New York State and City net
operating loss carry-forwards are subject to a carry-forward
period of 20 years. This provides enough time to fully utilize
the net DTAs pertaining to these existing net operating loss
carry-forwards. This is due to Citi’s forecast of sufficient U.S.
taxable income and the continued taxation of Citi’s non-U.S.
income by New York State and City.
Although realization is not assured, Citi believes that the
realization of its recognized net DTAs of $29.8 billion at
December 31, 2024 is more-likely-than-not, based on
management’s expectations as to future taxable income in the
jurisdictions in which the DTAs arise, as well as available tax
planning strategies (as defined in ASC Topic 740, Income
Taxes). Citi has concluded that it has the necessary positive
evidence to support the realization of its net DTAs after taking
its VAs into consideration.
See Note 10 for additional information on Citi’s income
taxes, including its income tax provision, tax assets and
liabilities and a tabular summary of Citi’s net DTAs balance as
of December 31, 2024 (including the FTCs and applicable
expiration dates of the FTCs). For information on Citi’s ability
to use its DTAs, see “Risk Factors—Strategic Risks” above
and Note 10.
Accounting Changes
See Note 1 for a discussion of changes in accounting
standards.
DISCLOSURE CONTROLS AND
PROCEDURES
Citi’s disclosure controls and procedures are designed to
ensure that information required to be disclosed under the
Securities Exchange Act of 1934, as amended, is recorded,
processed, summarized and reported within the time periods
specified in the SEC’s rules and forms, including without
limitation that information required to be disclosed by Citi in
its SEC filings is accumulated and communicated to
management, including the Chief Executive Officer (CEO)
and Chief Financial Officer (CFO), as appropriate, to allow for
timely decisions regarding required disclosure.
Citi’s Disclosure Committee assists the CEO and CFO in
their responsibilities to design, establish, maintain and
evaluate the effectiveness of Citi’s disclosure controls and
procedures. The Disclosure Committee is responsible for,
among other things, the oversight, maintenance and
implementation of the disclosure controls and procedures,
subject to the supervision and oversight of the CEO and CFO.
Citi’s management, with the participation of its CEO and
CFO, has evaluated the effectiveness of Citigroup’s disclosure
controls and procedures (as defined in Rule 13a-15(e) under
the Securities Exchange Act of 1934) as of December 31,
2024. Based on that evaluation, the CEO and CFO have
concluded that at that date Citigroup’s disclosure controls and
procedures were effective.
135
MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING
Citi’s management is responsible for establishing and
maintaining adequate internal control over financial reporting.
Citi’s internal control over financial reporting is designed to
provide reasonable assurance regarding the reliability of its
financial reporting and the preparation of financial statements
for external reporting purposes in accordance with U.S.
generally accepted accounting principles. Citi’s internal
control over financial reporting includes those policies and
procedures that (i) pertain to the maintenance of records that in
reasonable detail accurately and fairly reflect the transactions
and dispositions of Citi’s assets, (ii) provide reasonable
assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with
generally accepted accounting principles and that Citi’s
receipts and expenditures are made only in accordance with
authorizations of Citi’s management and directors, and (iii)
provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use or disposition of
Citi’s assets that could have a material effect on its financial
statements.
Because of its inherent limitations, internal control over
financial reporting may not prevent or detect all
misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in
conditions or that the degree of compliance with the policies
or procedures may deteriorate.
Citi’s management assessed the effectiveness of
Citigroup’s internal control over financial reporting as of
December 31, 2024 based on the criteria set forth by the
Committee of Sponsoring Organizations of the Treadway
Commission (COSO) in Internal Control—Integrated
Framework (2013). Based on this assessment, management
has concluded that, as of December 31, 2024, Citi’s internal
control over financial reporting was effective. In addition,
there were no changes in Citi’s internal control over financial
reporting during the fiscal quarter ended December 31, 2024
that materially affected, or are reasonably likely to materially
affect, Citi’s internal control over financial reporting.
The effectiveness of Citi’s internal control over financial
reporting as of December 31, 2024 has been audited by
KPMG LLP, Citi’s independent registered public accounting
firm, as stated in their report below, which expressed an
unqualified opinion on the effectiveness of Citi’s internal
control over financial reporting as of December 31, 2024.
136
FORWARD-LOOKING STATEMENTS
Certain statements in this report, including but not limited to
statements included within the Management’s Discussion and
Analysis of Financial Condition and Results of Operations, are
“forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. In addition,
Citigroup may make forward-looking statements in its other
documents filed or furnished with the SEC, and its
management may make forward-looking statements orally to
analysts, investors, representatives of the media and others.
Generally, forward-looking statements are not based on
historical facts but instead represent Citigroup’s and its
management’s beliefs regarding future events. Such
statements may be identified by words such as believe, expect,
anticipate, intend, estimate, may increase, may fluctuate,
target, outlook, guidance and illustrative, and similar
expressions or future or conditional verbs such as will, should,
would and could.
Such statements are based on management’s current
expectations and are subject to risks, uncertainties and changes
in circumstances. Actual results of operations and financial
conditions, including capital and liquidity, may differ
materially from those included in these statements due to a
variety of factors, including without limitation (i) the
precautionary statements included within the “Executive
Summary,” “Citi’s Multiyear Transformation” and each
business’s discussion and analysis of its results of operations
and (ii) the factors listed and described under “Risk Factors”
above.
Any forward-looking statements made by or on behalf of
Citigroup speak only as to the date they are made, and Citi
does not undertake to update forward-looking statements to
reflect the impact of circumstances or events that arise after
the date that the forward-looking statements were made.
137
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders and Board of Directors
Citigroup Inc.:
Opinions on the Consolidated Financial Statements and
Internal Control Over Financial Reporting
We have audited the accompanying consolidated balance
sheets of Citigroup Inc. and subsidiaries (the Company) as of
December 31, 2024 and 2023, the related consolidated
statements of income, comprehensive income, changes in
stockholders’ equity, and cash flows for each of the years in
the three-year period ended December 31, 2024, and the
related notes (collectively, the consolidated financial
statements). We also have audited the Company’s internal
control over financial reporting as of December 31, 2024,
based on criteria established in Internal Control—Integrated
Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission.
In our opinion, the consolidated financial statements
referred to above present fairly, in all material respects, the
financial position of the Company as of December 31, 2024
and 2023, and the results of its operations and its cash flows
for each of the years in the three-year period ended December
31, 2024, in conformity with U.S. generally accepted
accounting principles. Also in our opinion, the Company
maintained, in all material respects, effective internal control
over financial reporting as of December 31, 2024 based on
criteria established in Internal Control—Integrated
Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission.
Basis for Opinions
The Company’s management is responsible for these
consolidated financial statements, for maintaining effective
internal control over financial reporting, and for its assessment
of the effectiveness of internal control over financial reporting,
included in the accompanying management’s annual report on
internal control over financial reporting. Our responsibility is
to express an opinion on the Company’s consolidated financial
statements and an opinion on the Company’s internal control
over financial reporting based on our audits. We are a public
accounting firm registered with the Public Company
Accounting Oversight Board (United States) (PCAOB) and
are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the
applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards
of the PCAOB. Those standards require that we plan and
perform the audits to obtain reasonable assurance about
whether the consolidated financial statements are free of
material misstatement, whether due to error or fraud, and
whether effective internal control over financial reporting was
maintained in all material respects.
Our audits of the consolidated financial statements
included performing procedures to assess the risks of material
misstatement of the consolidated financial statements, whether
due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test
basis, evidence regarding the amounts and disclosures in the
consolidated financial statements. Our audits also included
evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the
overall presentation of the consolidated financial statements.
Our audit of internal control over financial reporting included
obtaining an understanding of internal control over financial
reporting, assessing the risk that a material weakness exists,
and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk.
Our audits also included performing such other procedures as
we considered necessary in the circumstances. We believe that
our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control Over Financial
Reporting
A company’s internal control over financial reporting is a
process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with
generally accepted accounting principles. A company’s
internal control over financial reporting includes those policies
and procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2)
provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and
that receipts and expenditures of the company are being made
only in accordance with authorizations of management and
directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial
statements.
Because of its inherent limitations, internal control over
financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matters communicated below are matters
arising from the current period audit of the consolidated
financial statements that were communicated or required to be
communicated to the audit committee and that: (1) relate to
accounts or disclosures that are material to the consolidated
financial statements and (2) involved our especially
138
challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any
way our opinion on the consolidated financial statements,
taken as a whole, and we are not, by communicating the
critical audit matters below, providing separate opinions on
the critical audit matters or on the accounts or disclosures to
which they relate.
Assessment of the fair value of certain Level 3 assets and
liabilities measured on a recurring basis
As described in Notes 1 and 26 to the consolidated
financial statements, the Company’s assets and liabilities
recorded at fair value on a recurring basis were $834,645
million, net and $317,033 million, net, respectively, at
December 31, 2024. The Company estimated the fair
value of Level 3 assets and liabilities measured on a
recurring basis ($9,194 million and $28,755 million,
respectively, at December 31, 2024) utilizing various
valuation techniques with one or more significant inputs
or significant value drivers being unobservable including,
but not limited to, complex internal valuation models,
alternative pricing procedures or comparables analysis
and discounted cash flows.
We identified the assessment of the measurement of
fair value for certain Level 3 assets and liabilities
recorded at fair value on a recurring basis as a critical
audit matter. A high degree of effort, including
specialized skills and knowledge, and subjective and
complex auditor judgment was involved in the assessment
of the Level 3 fair values due to measurement uncertainty.
Specifically, the assessment encompassed the evaluation
of the fair value methodology, including methods, models
and significant assumptions used to estimate fair value.
Significant assumptions include the use of proxy
information, the extrapolation and interpolation of proxy
information, and the use of historic pricing information as
well as certain model assumptions. The assessment also
included an evaluation of the conceptual soundness and
performance of the valuation models.
The following are the primary procedures we
performed to address this critical audit matter. We
involved valuation professionals with specialized skills
and knowledge who assisted in evaluating the design and
testing the operating effectiveness of certain internal
controls related to the Company’s Level 3 fair value
measurements including controls over:
•
valuation methodologies, including significant
assumptions
•
independent price verification
•
evaluating that significant model assumptions
reflected those which a market participant would use
to determine an exit price in the current market
environment
•
the valuation models used were mathematically
accurate and appropriate to value the financial
instruments and
•
relevant information used within the Company’s
models that was reasonably available was considered
in the fair value determination.
We evaluated the Company’s methodology for
compliance with U.S. generally accepted accounting
principles. We involved valuation professionals with
specialized skills and knowledge who assisted in
developing an independent fair value estimate for a
selection of certain Level 3 assets and liabilities recorded
at fair value on a recurring basis based on independently
developed valuation models and assumptions, as
applicable, using market data sources we determined to be
relevant and reliable and compared our independent
expectation to the Company’s fair value measurements.
Assessment of the allowance for credit losses collectively
evaluated for impairment
As described in Notes 1 and 16 to the consolidated
financial statements, the Company’s total allowance for
credit losses on loans, leases and unfunded lending
commitments was $20,175 million as of December 31,
2024, which includes the allowance related to loans and
unfunded lending commitments collectively evaluated for
impairment (the collective ACLL). The expected credit
losses for the quantitative component of the collective
ACLL is the product of multiplying the probability of
default (PD), loss given default (LGD), and exposure at
default (EAD), which are determined utilizing models, for
consumer and corporate loans. The PD, LGD, and EAD
assumptions are determined based on three
macroeconomic scenarios (base, downside and upside)
multiplied by their respective scenario weights. The
macroeconomic scenario weights are estimated based on a
statistical model, which takes into consideration both
internal and external forecasted macroeconomic variables
over a reasonable and supportable period, after which
mean reversion reflecting historical loss experience is
used for the remaining life of the loan to estimate
expected credit losses. The qualitative component
considers, among other things, certain portfolio
characteristics and idiosyncratic events. For consumer
U.S. credit cards, the Company utilizes the payment rate
approach to determine the payments needed to pay off the
end-of-period balance in the estimation of the EAD. This
approach incorporates payment rate curves and is used to
estimate EAD. Reserves for unconditionally cancelable
accounts are based on the expected life of the balance as
of the evaluation date and do not include undrawn
commitments that are unconditionally cancelable. In
addition, the models for the delinquency-managed
portfolios take into account leading credit indicators,
including loan delinquencies and changes in portfolio size
as well as economic trends, including current and future
housing prices, unemployment, length of time in
foreclosure, and costs to sell. The models for classifiably
managed portfolios consider the credit quality as
measured by risk ratings and economic factors.
We identified the assessment of the collective ACLL,
specifically the quantitative component for the consumer
U.S. credit cards which applies the delinquency-managed
model and corporate loan portfolios which applies the
classifiably managed model, and the qualitative
component for the corporate portfolio as a critical audit
139
matter. A high degree of effort, including specialized
skills and knowledge, and subjective and complex auditor
judgment was involved in the assessment due to
significant measurement uncertainty. Specifically, the
assessment encompassed the evaluation of the various
components of the collective ACLL methodology,
including the methods and models used to estimate the
PD, LGD, and EAD and certain significant assumptions
for the Company’s quantitative and qualitative
components. The significant assumptions for consumer
U.S. credit card loans encompass expected life as well as
the reasonable and supportable forecasts for significant
macroeconomic variables. The significant macroeconomic
variables include U.S. unemployment (UER) and U.S.
housing prices (HPI), which are utilized by the models.
The significant assumptions for corporate loans
encompass risk ratings, credit conversion factor for
unfunded lending commitments, and reasonable and
supportable forecast for significant macroeconomic
variables. The significant macroeconomic variables
include U.S. real gross domestic product (GDP) and UER,
which are utilized by the model. The significant
assumptions for the qualitative component for corporate
loan portfolios include potential impacts on vulnerable
industries and regions due to emerging macroeconomic
risks and uncertainty including those related to potential
global recession, inflation, interest rates, commodity
prices, and geopolitical tensions. The assessment also
included an evaluation of the conceptual soundness and
performance of the PD, LGD, and EAD models. In
addition, auditor judgment was required to evaluate the
sufficiency of audit evidence obtained.
The following are the primary procedures we
performed to address this critical audit matter. We
evaluated the design and tested the operating effectiveness
of certain internal controls related to the Company’s
measurement of the collective ACLL estimate, including
controls over the:
•
approval of the collective ACLL methodologies,
including the PD, LGD, and EAD
•
determination of the significant assumptions used to
estimate the quantitative and qualitative components
of the collective ACLL
•
performance monitoring of the PD, LGD, and EAD
models.
We evaluated the Company’s process to develop the
collective ACLL estimate by testing certain sources of
data and assumptions that the Company used and
considered the relevance and reliability of such data and
assumptions. In addition, we involved credit risk
professionals with specialized skills and knowledge, who
assisted in:
•
evaluating the Company’s collective ACLL
methodologies for compliance with U.S. generally
accepted accounting principles
•
continued assessment of the conceptual soundness
and performance testing of the PD, LGD, and EAD
models by inspecting the model documentation to
determine whether the models are suitable for their
intended use
•
evaluating judgments made by the Company relative
to the performance monitoring testing of the PD,
LGD, and EAD models by comparing them to
relevant Company-specific metrics
•
assessing the macroeconomic forecast scenarios
through comparison to publicly available forecasts
•
testing corporate loan risk ratings for a selection of
borrowers by evaluating the financial performance of
the borrower, sources of repayment, and any relevant
guarantees or underlying collateral
•
evaluating the methodologies used to develop the
qualitative component and their significant
assumptions and the effect of that component on the
collective ACLL compared with relevant credit risk
factors and consistency with credit trends.
We also assessed the sufficiency of the audit
evidence obtained related to the collective ACLL by
evaluating the:
•
cumulative results of the audit procedures
•
qualitative aspects of the Company’s accounting
practices
•
potential bias in the accounting estimates.
/s/ KPMG LLP
We have served as the Company’s auditor since 1969.
New York, New York
February 21, 2025
140
FINANCIAL STATEMENTS AND NOTES—TABLE OF CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Statement of Income—
For the Years Ended December 31, 2024, 2023 and 2022
142
Consolidated Statement of Comprehensive Income—
For the Years Ended December 31, 2024, 2023 and 2022
143
Consolidated Balance Sheet—December 31, 2024 and 2023
144
Consolidated Statement of Changes in Stockholders’ Equity—
For the Years Ended December 31, 2024, 2023 and 2022
146
Consolidated Statement of Cash Flows—
For the Years Ended December 31, 2024, 2023 and 2022
148
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1—Summary of Significant Accounting Policies
150
Note 2—Discontinued Operations, Significant Disposals
and Other Business Exits
166
Note 3—Operating Segments
169
Note 4—Interest Income and Expense
174
Note 5—Commissions and Fees; Administration and Other
Fiduciary Fees
175
Note 6—Principal Transactions
178
Note 7—Incentive Plans
179
Note 8—Retirement Benefits
182
Note 9—Restructuring
193
Note 10—Income Taxes
194
Note 11—Earnings per Share
198
Note 12—Securities Borrowed, Loaned and Subject to
Repurchase Agreements
199
Note 13—Brokerage Receivables and Brokerage Payables
202
Note 14—Investments
203
Note 15—Loans
212
Note 16—Allowance for Credit Losses
230
Note 17—Goodwill and Intangible Assets
234
Note 18—Deposits
236
Note 19—Debt
237
Note 20—Regulatory Capital
239
Note 21—Changes in Accumulated Other Comprehensive
Income (Loss) (AOCI)
240
Note 22—Preferred Stock
243
Note 23—Securitizations and Variable Interest Entities
245
Note 24—Derivatives
257
Note 25—Concentrations of Credit Risk
268
Note 26—Fair Value Measurement
270
Note 27—Fair Value Elections
289
Note 28—Pledged Assets, Restricted Cash, Collateral,
Guarantees and Commitments
293
Note 29—Leases
300
Note 30—Contingencies
301
Note 31—Subsidiary Guarantees
309
Note 32—Condensed Parent Company Financial Statements
310
141
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF INCOME
Citigroup Inc. and Subsidiaries
Years ended December 31,
In millions of dollars, except per share amounts
2024
2023
2022
Revenues
Interest income
$
143,713 $
133,258 $
74,408
Interest expense
89,618
78,358
25,740
Net interest income
$
54,095 $
54,900 $
48,668
Commissions and fees
$
10,653 $
8,905 $
9,175
Principal transactions
11,653
10,948
14,159
Administration and other fiduciary fees
4,134
3,781
3,784
Realized gains on sales of investments, net
328
188
67
Impairment losses on investments:
Impairment losses on investments
(431)
(323)
(499)
(Provision) releases for credit losses on AFS debt securities(1)
1
(4)
5
Net impairment losses recognized in earnings
$
(430) $
(327) $
(494)
Other revenue
$
706 $
67 $
(21)
Total non-interest revenues
$
27,044 $
23,562 $
26,670
Total revenues, net of interest expense
$
81,139 $
78,462 $
75,338
Provisions for credit losses and for benefits and claims
Provision for credit losses on loans
$
9,726 $
7,786 $
4,745
Provision (release) for credit losses on HTM debt securities
50
(24)
33
Provision for credit losses on other assets
362
1,762
76
Policyholder benefits and claims
90
87
94
Provision (release) for credit losses on unfunded lending commitments
(119)
(425)
291
Total provisions for credit losses and for benefits and claims(1)
$
10,109 $
9,186 $
5,239
Operating expenses
Compensation and benefits
$
28,542 $
29,232 $
26,655
Technology/communication
9,035
9,106
8,587
Transactional and tax charges
3,574
3,218
2,848
Premises and equipment
2,438
2,508
2,320
Professional services
2,016
2,078
2,481
Advertising and marketing
1,113
1,393
1,556
Restructuring
259
781
—
Other operating
7,007
8,050
6,845
Total operating expenses
$
53,984 $
56,366 $
51,292
Income from continuing operations before income taxes
$
17,046 $
12,910 $
18,807
Provision for income taxes
4,211
3,528
3,642
Income from continuing operations
$
12,835 $
9,382 $
15,165
Discontinued operations
Income (loss) from discontinued operations
$
(2) $
(1) $
(272)
Benefit for income taxes
—
—
(41)
Income (loss) from discontinued operations, net of taxes
$
(2) $
(1) $
(231)
Net income before attribution to noncontrolling interests
$
12,833 $
9,381 $
14,934
Noncontrolling interests
151
153
89
Citigroup’s net income
$
12,682 $
9,228 $
14,845
Basic earnings per share(2)
Income from continuing operations
$
6.03 $
4.07 $
7.16
Income from discontinued operations, net of taxes
—
—
(0.12)
Net income
$
6.03 $
4.07 $
7.04
Weighted-average common shares outstanding (in millions)
1,901.4
1,930.1
1,946.7
142
Diluted earnings per share(2)
Income from continuing operations
$
5.95 $
4.04 $
7.11
Income (loss) from discontinued operations, net of taxes
—
—
(0.12)
Net income
$
5.94 $
4.04 $
7.00
Adjusted weighted-average diluted common shares outstanding
(in millions)
1,940.1
1,955.8
1,964.3
(1)
In accordance with ASC 326, which requires the provision for credit losses on AFS debt securities to be included in revenue. The Total provisions for credit losses
and for benefits and claims excludes the provision for credit losses on AFS debt securities, which is disclosed separately above.
(2)
Due to rounding, earnings per share on continuing operations and discontinued operations may not sum to earnings per share on net income.
The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Citigroup Inc. and Subsidiaries
Years ended December 31,
In millions of dollars
2024
2023
2022
Citigroup’s net income
$
12,682 $
9,228 $
14,845
Net changes, net of taxes in Citigroup’s other comprehensive income (loss)
Unrealized gains and losses on AFS debt securities
$
907 $
2,254 $
(5,384)
Debt valuation adjustment (DVA)
(412)
(1,551)
2,029
Cash flow hedges
1,186
1,116
(2,623)
Benefit plans liability adjustment
423
(295)
97
Currency translation adjustments (CTA), net of hedges
(5,162)
752
(2,471)
Excluded component of fair value hedges
(12)
(48)
55
Long-duration insurance contracts
18
7
—
Citigroup’s total other comprehensive income (loss)
$
(3,052) $
2,235 $
(8,297)
Citigroup’s total comprehensive income
$
9,630 $
11,463 $
6,548
Add: Other comprehensive income (loss) attributable to noncontrolling interests
$
(61) $
84 $
(58)
Add: Net income (loss) attributable to noncontrolling interests
151
153
89
Total comprehensive income
$
9,720 $
11,700 $
6,579
The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
143
CONSOLIDATED BALANCE SHEET
Citigroup Inc. and Subsidiaries
December 31,
In millions of dollars
2024
2023
Assets
Cash and due from banks (including segregated cash and other deposits)
$
22,782 $
27,342
Deposits with banks, net of allowance
253,750
233,590
Securities borrowed and purchased under agreements to resell (including $140,855 and $206,059 as of
December 31, 2024 and 2023, respectively, at fair value), net of allowance
274,062
345,700
Brokerage receivables, net of allowance
50,841
53,915
Trading account assets (including $193,291 and $197,156 pledged to creditors at December 31, 2024 and
2023, respectively)
442,747
411,756
Investments:
Available-for-sale debt securities (including $5,389 and $11,868 pledged to creditors as of
December 31, 2024 and 2023, respectively)
226,876
256,936
Held-to-maturity debt securities, net of allowance (fair value of which is $224,410 and $235,001 as of
December 31, 2024 and 2023, respectively) (includes $0 and $71 pledged to creditors as of
December 31, 2024 and 2023, respectively)
242,382
254,247
Equity securities (including $578 and $766 as of December 31, 2024 and 2023, respectively,
at fair value)
7,399
7,902
Total investments
$
476,657 $
519,085
Loans:
Consumer (including $281 and $313 as of December 31, 2024 and 2023, respectively, at fair value)
393,102
389,197
Corporate (including $7,759 and $7,281 as of December 31, 2024 and 2023, respectively, at fair value)
301,386
300,165
Loans, net of unearned income
$
694,488 $
689,362
Allowance for credit losses on loans (ACLL)
(18,574)
(18,145)
Total loans, net
$
675,914 $
671,217
Goodwill
19,300
20,098
Intangible assets (including MSRs of $760 and $691 as of December 31, 2024 and 2023, respectively)
4,494
4,421
Premises and equipment, net of depreciation and amortization
30,192
28,747
Other assets (including $13,703 and $12,290 as of December 31, 2024 and 2023, respectively,
at fair value), net of allowance
102,206
95,963
Total assets
$
2,352,945 $
2,411,834
Statement continues on the next page.
144
CONSOLIDATED BALANCE SHEET
Citigroup Inc. and Subsidiaries
(Continued)
December 31,
In millions of dollars, except shares and per share amounts
2024
2023
Liabilities
Deposits (including $3,608 and $2,440 as of December 31, 2024 and 2023, respectively, at fair value)
$
1,284,458 $
1,308,681
Securities loaned and sold under agreements to repurchase (including $49,154 and $62,485 as of
December 31, 2024 and 2023, respectively, at fair value)
254,755
278,107
Brokerage payables (including $5,207 and $4,321 as of December 31, 2024 and 2023, respectively,
at fair value)
66,601
63,539
Trading account liabilities
133,846
155,345
Short-term borrowings (including $12,484 and $6,545 as of December 31, 2024 and 2023, respectively,
at fair value)
48,505
37,457
Long-term debt (including $112,719 and $116,338 as of December 31, 2024 and 2023, respectively,
at fair value)
287,300
286,619
Other liabilities, plus allowances
68,114
75,835
Total liabilities
$
2,143,579 $
2,205,583
Stockholders’ equity
Preferred stock ($1.00 par value; authorized shares: 30 million), issued shares: as of December 31, 2024
—714,000 and as of December 31, 2023—704,000, at aggregate liquidation value
$
17,850 $
17,600
Common stock ($0.01 par value; authorized shares: 6 billion), issued shares: as of December 31, 2024
—3,099,719,006 and as of December 31, 2023—3,099,691,704
31
31
Additional paid-in capital
109,117
108,955
Retained earnings
206,294
198,905
Treasury stock, at cost: December 31, 2024—1,222,647,540 shares and December 31, 2023—
1,196,577,865 shares
(76,842)
(75,238)
Accumulated other comprehensive income (loss) (AOCI)
(47,852)
(44,800)
Total Citigroup stockholders’ equity
$
208,598 $
205,453
Noncontrolling interests
768
798
Total equity
$
209,366 $
206,251
Total liabilities and equity
$
2,352,945 $
2,411,834
The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
145
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
Citigroup Inc. and Subsidiaries
Years ended December 31,
Amounts
Shares
In millions of dollars, except shares in thousands
2024
2023
2022
2024
2023
2022
Preferred stock at aggregate liquidation value
Balance, beginning of year
$
17,600 $
18,995 $
18,995
704
760
760
Issuance of new preferred stock
5,300
2,750
—
212
110
—
Redemption of preferred stock
(5,050)
(4,145)
—
(202)
(166)
—
Balance, end of year
$
17,850 $
17,600 $
18,995
714
704
760
Common stock and additional paid-in capital (APIC)
Balance, beginning of year
$ 108,986 $ 108,489 $ 108,034 3,099,692 3,099,669 3,099,652
Employee benefit plans
189
452
455
27
23
17
Other
(27)
45
—
—
—
—
Balance, end of year
$ 109,148 $ 108,986 $ 108,489 3,099,719 3,099,692 3,099,669
Retained earnings
Balance, beginning of year
$ 198,905 $ 194,734 $ 184,948
Adjustments to opening balance, net of taxes(1)
Financial instruments—TDRs and vintage disclosures
—
290
—
Adjusted balance, beginning of year
$ 198,905 $ 195,024 $ 184,948
Citigroup’s net income
12,682
9,228
14,845
Common dividends(2)
(4,218)
(4,076)
(4,028)
Preferred dividends
(1,054)
(1,198)
(1,032)
Other (primarily reclassifications from APIC for preferred
issuance costs on redemptions)
(21)
(73)
1
Balance, end of year
$ 206,294 $ 198,905 $ 194,734
Treasury stock, at cost
Balance, beginning of year
$ (75,238) $ (73,967) $ (71,240) (1,196,578) (1,162,683) (1,115,297)
Employee benefit plans(3)
896
729
523
13,184
10,276
8,190
Treasury stock acquired
(2,500)
(2,000)
(3,250)
(39,254)
(44,171)
(55,576)
Balance, end of year
$ (76,842) $ (75,238) $ (73,967) (1,222,648) (1,196,578) (1,162,683)
Citigroup’s accumulated other comprehensive income (loss)
Balance, beginning of year
$ (44,800) $ (47,062) $ (38,765)
Adjustment to opening balance, net of taxes(4)
—
27
—
Adjusted balance, beginning of year
$ (44,800) $ (47,035) $ (38,765)
Citigroup’s total other comprehensive income
(3,052)
2,235
(8,297)
Balance, end of year
$ (47,852) $ (44,800) $ (47,062)
Total Citigroup common stockholders’ equity
$ 190,748 $ 187,853 $ 182,194 1,877,071 1,903,114 1,936,986
Total Citigroup stockholders’ equity
$ 208,598 $ 205,453 $ 201,189
Noncontrolling interests
Balance, beginning of year
$
798 $
649 $
700
Transactions between Citigroup and the noncontrolling-interest
shareholders
(26)
(14)
(34)
Net income attributable to noncontrolling-interest shareholders
151
153
89
Distributions paid to noncontrolling-interest shareholders
(94)
(82)
(51)
Other comprehensive income (loss) attributable to
noncontrolling-interest shareholders
(61)
84
(58)
Other
—
8
3
Net change in noncontrolling interests
$
(30) $
149 $
(51)
Balance, end of year
$
768 $
798 $
649
Total equity
$ 209,366 $ 206,251 $ 201,838
(1)
See “Accounting Changes” in Note 1.
(2)
Common dividends declared were $0.53 per share for each of 1Q24 and 2Q24, and $0.56 per share for each of 3Q24 and 4Q24; $0.51 per share for each of 1Q23
and 2Q23, and $0.53 for each of 3Q23 and 4Q23; and $0.51 per share for each of 1Q22, 2Q22, 3Q22 and 4Q22.
(3)
Includes treasury stock related to certain activity under Citi’s employee restricted or deferred stock programs where shares are withheld to satisfy employees’ tax
requirements.
146
(4)
See Note 1.
The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
147
CONSOLIDATED STATEMENT OF CASH FLOWS
Citigroup Inc. and Subsidiaries
Years ended December 31,
In millions of dollars
2024
2023
2022
Cash flows from operating activities of continuing operations
Net income before attribution of noncontrolling interests
$
12,833 $
9,381 $
14,934
Net income attributable to noncontrolling interests
151
153
89
Citigroup’s net income
$
12,682 $
9,228 $
14,845
Income (loss) from discontinued operations, net of taxes
(2)
(1)
(231)
Income from continuing operations—excluding noncontrolling interests
$
12,684 $
9,229 $
15,076
Adjustments to reconcile net income to net cash provided by (used in) operating activities
of continuing operations
Net loss (gain) on sale of significant disposals(1)
—
(1,462)
(762)
Depreciation and amortization
4,311
4,560
4,262
Deferred income taxes
(1,896)
(2,416)
(1,141)
Provisions for credit losses and for benefits and claims
10,109
9,186
5,239
Realized gains from sales of investments
(328)
(188)
(67)
Impairment losses on investments and other assets
431
323
499
Goodwill impairment
—
—
535
Change in trading account assets
(31,174)
(77,838)
(2,273)
Change in trading account liabilities
(21,499)
(15,302)
9,118
Change in brokerage receivables net of brokerage payables
6,136
(5,402)
7,936
Change in loans held-for-sale (HFS)
(776)
1,929
4,421
Change in other assets
(4,026)
(6,361)
(4,992)
Change in other liabilities(2)
(7,692)
3,587
5,343
Other, net
14,051
6,739
(18,125)
Total adjustments
$
(32,353) $
(82,645) $
9,993
Net cash provided by (used in) operating activities of continuing operations
$
(19,669) $
(73,416) $
25,069
Cash flows from investing activities of continuing operations
Change in securities borrowed and purchased under agreements to resell
$
71,638 $
19,701 $
(38,113)
Change in loans
(20,455)
(44,525)
(16,591)
Purchase of portfolio of consumer loans
(700)
—
—
Proceeds from sales and securitizations of loans
5,316
4,801
4,709
Net payment due to transfer of net liabilities associated with divestitures(1)
—
(1,393)
5,741
Available-for-sale (AFS) debt securities
Purchases of investments
(250,932)
(235,139)
(218,747)
Proceeds from sales of investments
57,526
41,886
79,687
Proceeds from maturities of investments
216,386
200,437
140,934
Held-to-maturity (HTM) debt securities
Purchases of investments
(16,492)
(1,373)
(42,903)
Proceeds from maturities of investments
27,729
12,838
12,188
Capital expenditures on premises and equipment and capitalized software
(6,500)
(6,583)
(5,632)
Proceeds from sales of premises and equipment and repossessed assets
222
56
63
Other, net
2,512
835
(791)
Net cash provided by (used in) investing activities of continuing operations
$
86,250 $
(8,459) $
(79,455)
Cash flows from financing activities of continuing operations
Dividends paid
$
(5,199) $
(5,212) $
(5,003)
Issuance of preferred stock
5,282
2,739
—
Redemption of preferred stock
(5,050)
(4,145)
—
Treasury stock acquired
(2,474)
(1,977)
(3,250)
Stock tendered for payment of withholding taxes
(454)
(329)
(344)
148
CONSOLIDATED STATEMENT OF CASH FLOWS
(Continued)
Citigroup Inc. and Subsidiaries
Years ended December 31,
In millions of dollars
2024
2023
2022
Change in securities loaned and sold under agreements to repurchase
$
(23,352) $
75,663 $
11,159
Issuance of long-term debt
99,075
65,819
104,748
Payments and redemptions of long-term debt
(92,957)
(64,959)
(57,085)
Change in deposits
(24,223)
(57,273)
68,415
Change in short-term borrowings
11,048
(9,639)
19,123
Net cash provided by (used in) financing activities of continuing operations
$
(38,304) $
687 $
137,763
Effect of exchange rate changes on cash, due from banks and deposits with banks
$
(12,677) $
95 $
(3,385)
Change in cash, due from banks and deposits with banks
15,600
(81,093)
79,992
Cash, due from banks and deposits with banks at beginning of year
260,932
342,025
262,033
Cash, due from banks and deposits with banks at end of year
$
276,532 $
260,932 $
342,025
Cash and due from banks (including segregated cash and other deposits)
$
22,782 $
27,342 $
30,577
Deposits with banks, net of allowance
253,750
233,590
311,448
Cash, due from banks and deposits with banks at end of year
$
276,532 $
260,932 $
342,025
Supplemental disclosure of cash flow information for continuing operations
Cash paid during the year for income taxes(3)
$
5,798 $
5,727 $
3,733
Cash paid during the year for interest
88,027
72,989
22,615
Non-cash investing activities(1)(4)(5)
Transfer of investment securities from HTM to AFS
$
— $
3,324 $
—
Transfer of investment securities from AFS to HTM
—
—
21,688
Decrease in net loans associated with divestitures reclassified to HFS
—
—
16,956
Decrease in goodwill associated with divestitures reclassified to HFS
—
—
876
Transfers to loans HFS (Other assets) from loans HFI
5,535
7,866
5,582
Transfers from loans HFS (Other assets) to loans HFI
—
322
—
Non-cash financing activities(1)(5)
Decrease in deposits associated with divestitures reclassified to HFS
$
— $
— $
19,691
(1)
See Note 2.
(2)
Includes balances related to the FDIC special assessment and restructuring charges (see Notes 18 and 9, respectively).
(3)
Includes net cash paid (received) for purchases and sales of nonrefundable, transferable tax credits.
(4)
In January 2023, Citi adopted ASU 2022-01. Upon adoption, Citi transferred $3.3 billion of mortgage-backed securities from HTM classification to AFS
classification as allowed under the ASU. At the time of transfer, the securities were in an unrealized gain position of $0.1 billion, which was recorded in AOCI
upon transfer.
(5)
Operating and finance lease right-of-use assets and lease liabilities represent non-cash investing and financing activities, respectively, and are not included in the
non-cash investing activities presented here. See Note 29 for more information and balances as of December 31, 2024 and 2023.
The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
149
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Throughout these Notes, “Citigroup,” “Citi” and the
“Company” refer to Citigroup Inc. and its consolidated
subsidiaries.
Certain reclassifications and updates have been made to
the prior periods’ financial statements and notes to conform to
the current period’s presentation.
Principles of Consolidation
The Consolidated Financial Statements include the accounts of
Citigroup and its subsidiaries prepared in accordance with
U.S. generally accepted accounting principles (GAAP). The
Company consolidates subsidiaries in which it holds, directly
or indirectly, more than 50% of the voting rights or where it
exercises control. Entities in which the Company holds 20% to
50% of the voting rights and/or has the ability to exercise
significant influence, other than investments of designated
venture capital subsidiaries or investments accounted for at
fair value under the fair value option, are accounted for under
the equity method, and the pro rata share of their income (loss)
is included in Other revenue. Income from investments in less-
than-20%-owned companies is recognized when dividends are
received. As discussed in more detail in Note 23, Citigroup
also consolidates entities deemed to be variable interest
entities when Citigroup is determined to be the primary
beneficiary. Gains and losses on the disposition of branches,
subsidiaries, affiliates, buildings and other investments are
included in Other revenue.
Citibank
Citibank, N.A. (Citibank) is a commercial bank and indirect
wholly owned subsidiary of Citigroup. Citibank’s principal
offerings include investment banking, commercial banking,
cash management, trade finance and e-commerce; private
banking products and services; consumer finance, credit cards
and mortgage lending; and retail banking products and
services.
Uses of Special Purpose Entities
A special purpose entity (SPE) is an entity designed to fulfill a
specific limited need of the company that organized it. The
principal uses of SPEs by Citi are to assist clients in
securitizing their financial assets and create investment
products for clients and to obtain liquidity and optimize capital
efficiency by securitizing certain of Citi’s financial assets.
SPEs may be organized in various legal forms, including
trusts, partnerships or corporations. In a securitization, through
the SPE’s issuance of debt and equity instruments, certificates,
commercial paper or other notes of indebtedness, the company
transferring assets to the SPE converts all (or a portion) of
those assets into cash before they would have been realized in
the normal course of business. These issuances are recorded
on the balance sheet of the SPE, which may or may not be
consolidated onto the balance sheet of the company that
organized the SPE.
Investors usually have recourse only to the assets in the
SPE, but may also benefit from other credit enhancements,
such as a collateral account, a line of credit or a liquidity
facility, such as a liquidity put option or asset purchase
agreement. Because of these enhancements, the SPE issuances
typically obtain a more favorable credit rating than the
transferor could obtain for its own debt issuances. This results
in less expensive financing costs than unsecured debt. The
SPE may also enter into derivative contracts in order to
convert the yield or currency of the underlying assets to match
the needs of the SPE investors or to limit or change the credit
risk of the SPE. Citigroup may be the provider of certain credit
enhancements as well as the counterparty to any related
derivative contracts. Most of Citigroup’s SPEs are variable
interest entities (VIEs).
Variable Interest Entities
An entity is a variable interest entity (VIE) if it meets either of
the criteria outlined in Accounting Standards Codification
(ASC) Topic 810, Consolidation, which are (i) the entity has
equity that is insufficient to permit the entity to finance its
activities without additional subordinated financial support
from other parties, or (ii) the entity has equity investors that
cannot make significant decisions about the entity’s operations
or that do not absorb their proportionate share of the entity’s
expected losses or expected returns.
Investors that finance the VIE through debt or equity
interests or other counterparties providing other forms of
support, such as guarantees, certain fee arrangements or
certain types of derivative contracts, are variable interest
holders in the entity.
The variable interest holder, if any, that has a controlling
financial interest in a VIE is deemed to be the primary
beneficiary and must consolidate the VIE.
The Company must evaluate each VIE to understand the
purpose and design of the entity, the role the Company had in
the entity's design and its involvement in the VIE’s ongoing
activities. The Company then must evaluate which activities
most significantly impact the economic performance of the
VIE and who has the power to direct such activities.
For those VIEs where the Company determines that it has
the power to direct the activities that most significantly impact
the VIE’s economic performance, the Company must then
evaluate its economic interests, if any, and determine whether
it could absorb losses or receive benefits that could potentially
be significant to the VIE. When evaluating whether the
Company has an obligation to absorb losses that could
potentially be significant, it considers the maximum exposure
to such loss without consideration of probability. Such
obligations could be in various forms, including, but not
limited to, debt and equity investments, guarantees, liquidity
agreements and certain derivative contracts.
In various other transactions, the Company may (i) act as
a derivative counterparty (e.g., interest rate swap, cross-
currency swap or purchaser of credit protection under a credit
default swap or total return swap where the Company pays the
total return on certain assets to the SPE), (ii) act as underwriter
150
or placement agent, (iii) provide administrative, trustee or
other services or (iv) make a market in debt securities or other
instruments issued by VIEs. The Company generally considers
such involvement, by itself, not to be variable interests and
thus not an indicator of power or potentially significant
benefits or losses.
The Company consolidates a VIE when it has both the
power to direct the activities that most significantly impact the
VIE’s economic performance and a right to receive benefits or
the obligation to absorb losses of the entity that could be
potentially significant to the VIE (that is, Citi is the primary
beneficiary). In addition to variable interests held in
consolidated VIEs, the Company has variable interests in other
VIEs that are not consolidated because the Company is not the
primary beneficiary.
All unconsolidated VIEs are monitored by the Company
to assess whether any events have occurred to cause its
primary beneficiary status to change.
All entities not deemed to be VIEs with which the
Company has involvement are evaluated for consolidation
under other subtopics of ASC 810. See Note 23 for more
detailed information.
Transfers of Financial Assets
For a transfer of financial assets to be considered a sale, (i) the
assets must be legally isolated from the Company, even in
bankruptcy or other receivership, (ii) the purchaser must have
the right to pledge or sell the assets transferred (or, if the
purchaser is an entity whose sole purpose is to engage in
securitization and asset-backed financing activities through the
issuance of beneficial interests and that entity is constrained
from pledging the assets it receives, each beneficial interest
holder must have the right to sell or pledge their beneficial
interests), and (iii) the Company may not have an option or
obligation to reacquire the assets.
If these sale requirements are met, the assets are removed
from the Company’s Consolidated Balance Sheet. If the
conditions for sale are not met, the transfer is considered to be
a secured borrowing, the assets remain on the Consolidated
Balance Sheet and the sale proceeds are recognized as the
Company’s liability. A legal opinion on a sale generally is
obtained for complex transactions or where the Company has
continuing involvement with the assets transferred or with the
securitization entity. For a transfer to be eligible for sale
accounting, that opinion must state that the asset transfer
would be considered a sale and that the assets transferred
would not be consolidated with the Company’s other assets in
the event of the Company’s insolvency. See Note 23 for
further discussion.
Securitizations
If the securitization entity is a VIE, the Company consolidates
the VIE if it is the primary beneficiary (as discussed in
“Variable Interest Entities” above). For all other securitization
entities determined not to be VIEs in which Citigroup
participates, consolidation is based on which party has voting
control of the entity, giving consideration to removal and
liquidation rights in certain partnership structures. Only
securitization entities controlled by Citigroup are consolidated.
Where the Company is not required to consolidate the
securitization entity, the transfer of financial assets to the
entity is evaluated for sale accounting, as discussed in
“Transfers of Financial Assets” above.
Interests in the securitized and sold assets may be retained
in the form of subordinated or senior interest-only strips,
subordinated tranches, spread accounts and servicing rights. In
credit card securitizations, the Company retains a seller’s
interest in the credit card receivables transferred to the trusts,
which is not in securitized form. In the case of consolidated
securitization entities, including the credit card trusts, these
retained interests are not reported on Citi’s Consolidated
Balance Sheet. The securitized loans remain on the Balance
Sheet. Substantially all of the consumer loans sold or
securitized through non-consolidated trusts by Citigroup are
U.S. prime residential mortgage loans. Retained interests in
non-consolidated mortgage securitization trusts are classified
as Trading account assets, except for MSRs, which are
included in Intangible assets on Citigroup’s Consolidated
Balance Sheet.
Foreign Currency Translation
Assets and liabilities of Citi’s foreign operations are translated
from their respective functional currencies into U.S. dollars
using period-end spot foreign exchange rates. The effects of
those translation adjustments are reported in Accumulated
other comprehensive income (loss) (AOCI), a component of
stockholders’ equity, net of any related hedge and tax effects,
until realized upon sale or substantial liquidation of the foreign
entity, at which point such amounts are reclassified into
earnings. Revenues and expenses of Citi’s foreign operations
are translated monthly from their respective functional
currencies into U.S. dollars at amounts that approximate
weighted-average exchange rates.
For transactions that are denominated in a currency other
than the functional currency, including transactions
denominated in the local currencies of foreign operations that
use the U.S. dollar as their functional currency, the effects of
changes in exchange rates are primarily included in Principal
transactions, along with the related effects of any economic
hedges. Instruments used to hedge foreign currency exposures
include foreign currency forward, option and swap contracts
and, in certain instances, designated issues of non-U.S.-dollar
debt. Foreign operations in countries with highly inflationary
economies designate the U.S. dollar as their functional
currency, with the effects of changes in exchange rates
primarily included in Other revenue.
Investment Securities
Investments include debt and equity securities. Debt securities
include bonds, notes and redeemable preferred stocks, as well
as certain loan-backed and structured securities that are subject
to prepayment risk. Equity securities include common and
nonredeemable preferred stock.
151
Debt Securities
•
Debt securities classified as “held-to-maturity” (HTM) are
securities that the Company has both the ability and the
intent to hold until maturity and are carried at amortized
cost.
•
Debt securities classified as “available-for-sale” (AFS)
are carried at fair value with changes in fair value
reported in Accumulated other comprehensive income
(loss), a component of stockholders’ equity, net of
applicable income taxes and hedges.
•
Interest income on HTM and AFS debt securities is
included in Interest revenue. Accrued interest on these
securities is subject to the Company’s non-accrual policy,
which results in the timely write-off of uncollectible
accrued interest.
Debt securities are subject to evaluation for impairment as
described in Note 16 for HTM securities and in Note 14 for
AFS securities. Realized gains and losses on sales of
investments are included in earnings, primarily on a specific
identification basis.
Equity Securities
•
Marketable equity securities are measured at fair value
with changes in fair value recognized in earnings.
•
Non-marketable equity securities are measured at fair
value with changes in fair value recognized in earnings
unless (i) the measurement alternative is elected or (ii) the
investment represents Federal Reserve Bank and Federal
Home Loan Bank stock or certain exchange seats that
continue to be carried at cost. Non-marketable equity
securities under the measurement alternative are carried at
cost less impairment (if any), plus or minus changes
resulting from observed prices for orderly transactions for
the identical or a similar investment of the same issuer.
•
Equity securities that are not measured at fair value
through earnings are subject to evaluation for impairment
as described in Note 14.
•
Certain investments that would otherwise have been
accounted for using the equity method are carried at fair
value with changes in fair value recognized in earnings,
where the Company has elected to apply fair value
accounting, as described in Note 27.
•
The Company uses a number of valuation techniques for
investments carried at fair value, which are described in
Note 26.
Trading Account Assets and Liabilities
Trading account assets include debt and marketable equity
securities, derivatives in a receivable position, residual
interests in securitizations and physical commodities
inventory. In addition, as described in Note 27, certain assets
that Citigroup has elected to carry at fair value under the fair
value option, such as loans and purchased guarantees, are also
included in Trading account assets.
Trading account liabilities include securities sold, not yet
purchased (short positions) and derivatives in a net payable
position, as well as certain liabilities that Citigroup has elected
to carry at fair value (as described in Note 27).
Other than physical commodities inventory, all trading
account assets and liabilities are carried at fair value.
Revenues generated from trading assets and trading liabilities
are generally reported in Principal transactions and include
realized gains and losses as well as unrealized gains and losses
resulting from changes in the fair value of such instruments.
Interest income on trading assets, other than trading securities,
is recorded in Interest revenue reduced by interest expense on
trading liabilities. Interest income on trading securities is
recorded in Principal transactions.
Physical commodities inventory is carried at the lower of
cost or market, except when included in a hedging
relationship. Any gains and losses related to physical
commodities inventory are reported in Principal transactions.
Realized gains and losses on hedged commodities inventories
and sales of commodities inventory are included in Principal
transactions. Investments in unallocated precious metals
accounts (gold, silver, platinum and palladium) are accounted
for as hybrid instruments containing a debt host contract and
an embedded non-financial derivative instrument indexed to
the price of the relevant precious metal. The embedded
derivative instrument and debt host contract are carried at fair
value under the fair value option, as described in Note 27.
The Company manages its exposures to market
movements outside of its trading activities by modifying the
asset and liability mix, either directly or through the use of
derivative financial products, including interest rate swaps,
futures, forwards, purchased options and commodities, as well
as foreign exchange contracts. These end-user derivatives are
carried at fair value in Trading account assets and Trading
account liabilities.
See Note 24 for a further discussion of the Company’s
hedging and derivative activities.
Derivatives include interest rate, currency, equity, credit
and commodity swap agreements, options, caps and floors,
warrants, and financial and commodity futures and forward
contracts. Derivative asset and liability positions are presented
net by counterparty on the Consolidated Balance Sheet when a
valid master netting agreement exists and the other conditions
set out in ASC Topic 210-20, Balance Sheet—Offsetting, are
met. See Note 24.
The Company uses a number of techniques to determine
the fair value of trading assets and liabilities, which are
described in Note 26.
Accounting for Derivative Hedging
Citigroup accounts for its hedging activities in accordance
with ASC 815, Derivatives and Hedging. As a general rule,
hedge accounting is permitted where the Company is exposed
to a particular risk, such as interest rate or foreign exchange
risk, that causes changes in the fair value of an asset or
liability or variability in the expected future cash flows of an
existing asset, liability or a forecasted transaction that may
affect earnings.
Derivative contracts hedging the risks associated with
changes in fair value are referred to as fair value hedges, while
contracts hedging the variability of expected future cash flows
are cash flow hedges. Hedges that utilize derivatives or debt
instruments to manage the foreign exchange risk associated
with equity investments in non-U.S.-dollar-functional-
152
currency foreign subsidiaries (i.e., net investment in a foreign
operation) are net investment hedges.
To qualify as an accounting hedge under the hedge
accounting rules (versus an economic hedge where hedge
accounting is not applied), a hedging relationship must be
highly effective in offsetting the risk designated as being
hedged. The hedging relationship must be formally
documented at inception, detailing the particular risk
management objective and strategy for the hedge. This
includes the item and risk(s) being hedged, the hedging
instrument being used and how effectiveness will be assessed.
The effectiveness of these hedging relationships is
evaluated at hedge inception and on an ongoing basis both on
a retrospective and prospective basis, typically using
quantitative measures of correlation. Hedge effectiveness
assessment methodologies are performed in a similar manner
for similar hedges, and are used consistently throughout the
hedging relationships. The assessment of effectiveness may
exclude changes in the value of the hedged item that are
unrelated to the risks being hedged and the changes in fair
value of the derivative associated with time value.
Discontinued Hedge Accounting
A hedging instrument must be highly effective in
accomplishing the hedge objective of offsetting either changes
in the fair value or cash flows of the hedged item for the risk
being hedged. Management may voluntarily de-designate an
accounting hedge at any time, but if a hedging relationship is
not highly effective, it no longer qualifies for hedge
accounting and must be de-designated. Subsequent changes in
the fair value of the derivative are recognized in Other revenue
or Principal transactions, similar to trading derivatives, with
no offset recorded related to the hedged item.
For fair value hedges, any changes in the carrying value
of the hedged item remain as part of the basis of the asset or
liability and are ultimately realized as an element of the yield
on the item. For cash flow hedges, changes in fair value of the
end-user derivative remain in Accumulated other
comprehensive income (loss) (AOCI) and are included in the
earnings of future periods when the forecasted hedged cash
flows impact earnings. However, if it becomes probable that
some or all of the hedged forecasted transactions will not
occur, any amounts that remain in AOCI related to these
transactions must be immediately reflected in Other revenue.
The foregoing criteria are applied on a decentralized
basis, consistent with the level at which market risk is
managed, but are subject to various limits and controls. The
underlying asset, liability or forecasted transaction may be an
individual item or a portfolio of similar items.
Fair Value Hedges
Hedging of Benchmark Interest Rate Risk
Citigroup’s fair value hedges, which include hedges of closed
pools of assets, are primarily hedges of fixed-rate long-term
debt or assets, such as available-for-sale debt securities or
loans.
For qualifying fair value hedges of interest rate risk, the
changes in the fair value of the derivative and the change in
the fair value of the hedged item attributable to the hedged risk
are presented within Interest income or Interest expense based
on whether the hedged item is an asset or a liability.
Hedging of Foreign Exchange Risk
Citigroup hedges the change in fair value attributable to
foreign exchange rate movements in available-for-sale debt
securities and long-term debt that are denominated in
currencies other than the functional currency of the entity
holding the securities or issuing the debt. The hedging
instrument is generally a forward foreign exchange contract or
a cross-currency swap contract. Changes in the fair value of
the forward points (i.e., the spot-forward difference) of
forward contracts are excluded from the assessment of hedge
effectiveness and are generally reflected directly in earnings
over the life of the hedge. Citi also excludes changes in the
fair value of cross-currency basis associated with cross-
currency swaps from the assessment of hedge effectiveness
and records them in Other comprehensive income.
Hedging of Commodity Price Risk
Citigroup hedges the change in fair value attributable to spot
price movements in physical commodities inventories. The
hedging instrument is a futures contract to sell the underlying
commodity. In this hedge, the change in the carrying value of
the hedged inventory is reflected in earnings, which offsets the
change in the fair value of the futures contract that is also
reflected in earnings. Although the entire change in the fair
value of the hedging instrument is recorded in earnings, under
certain hedge programs, Citigroup excludes changes in the fair
value of the forward points (i.e., spot-forward difference) of
the futures contract from the assessment of hedge
effectiveness, and they are generally reflected directly in
earnings over the life of the hedge. Under other hedge
programs, Citi excludes changes in the fair value of forward
points from the assessment of hedge effectiveness and records
them in Other comprehensive income.
Cumulative Basis Adjustment
Upon electing to apply ASC 815 fair value hedge accounting,
the carrying value of the hedged item is adjusted to reflect the
cumulative changes in the hedged risk. This cumulative basis
adjustment becomes part of the carrying amount of the hedged
item until the hedged item is derecognized from the balance
sheet.
Cash Flow Hedges
Citigroup hedges the variability of forecasted cash flows due
to changes in contractually specified interest rates associated
with floating-rate assets/liabilities and other forecasted
transactions. Variable cash flows from those liabilities are
synthetically converted to fixed-rate cash flows by entering
into receive-variable, pay-fixed interest rate swaps and
receive-variable, pay-fixed forward-starting interest rate
swaps. Variable cash flows associated with certain assets are
synthetically converted to fixed-rate cash flows by entering
into receive-fixed, pay-variable interest rate swaps. These cash
flow hedging relationships use either regression analysis or
dollar-offset ratio analysis to assess whether the hedging
relationships are highly effective at inception and on an
ongoing basis.
153
For cash flow hedges, the entire change in the fair value
of the hedging derivative is recognized in AOCI and then
reclassified to earnings in the same period that the forecasted
hedged cash flows impact earnings.
Net Investment Hedges
Consistent with ASC 830-20, Foreign Currency Matters—
Foreign Currency Transactions, ASC 815 allows the hedging
of the foreign currency risk of a net investment in a foreign
operation. Citigroup uses foreign currency forwards, cross-
currency swaps, options and foreign currency-denominated
debt instruments to manage the foreign exchange risk
associated with Citigroup’s equity investments in several non-
U.S.-dollar-functional-currency foreign subsidiaries. Citi
records the change in the fair value of these hedging
instruments and the translation adjustment for the investments
in these foreign subsidiaries in Foreign currency translation
adjustment (CTA) within AOCI.
For derivatives designated as net investment hedges,
Citigroup follows the forward-rate method outlined in ASC
815-35-35. According to that method, all changes in fair value,
including changes related to the forward-rate component of the
foreign currency forward contracts and the time value of
foreign currency options, are recorded in CTA within AOCI.
For foreign currency-denominated debt instruments that
are designated as hedges of net investments, the translation
gain or loss that is recorded in CTA is based on the spot
exchange rate between the functional currency of the
respective subsidiary and the U.S. dollar, which is the
functional currency of Citigroup.
Economic Hedges
Citigroup often uses economic hedges when hedge accounting
would be too complex or operationally burdensome. End-user
derivatives that are economic hedges are carried at fair value,
with changes in value included in either Principal transactions
or Other revenue.
For asset/liability management hedging, fixed-rate long-
term debt is recorded at amortized cost under GAAP.
For other hedges that either do not meet the ASC 815
hedging criteria or for which management decides not to apply
ASC 815 hedge accounting, the derivative is recorded at fair
value on the balance sheet with the associated changes in fair
value recorded in earnings, while the debt continues to be
carried at amortized cost. Therefore, current earnings are
affected by the interest rate shifts and other factors that cause a
change in the swap’s value, but for which no offsetting change
in value is recorded on the debt.
Citigroup may alternatively elect to account for the debt at
fair value under the fair value option. Once the irrevocable
election is made upon issuance of the debt, the full change in
fair value of the debt is reported in earnings. The changes in
fair value of the related interest rate swap are also reflected in
earnings, which provides a natural offset to the debt’s fair
value change. To the extent that the two amounts differ
because the full change in the fair value of the debt includes
risks not offset by the interest rate swap, the difference is
automatically captured in current earnings.
Additional economic hedges include hedges of the credit
risk component of commercial loans and loan commitments.
Citigroup periodically evaluates its hedging strategies in other
areas and may designate either an accounting hedge or an
economic hedge after considering the relative costs and
benefits. Economic hedges are also employed when the
hedged item itself is marked-to-market through current
earnings, such as hedges of commitments to originate one- to
four-family mortgage loans to be HFS and MSRs.
Securities Borrowed and Securities Loaned
Securities borrowing and lending transactions do not
constitute a sale of the underlying securities for accounting
purposes and are treated as collateralized financing
transactions. Such transactions are recorded at the amount of
proceeds advanced or received plus accrued interest. As
described in Note 27, the Company has elected to apply fair
value accounting to a number of securities borrowing and
lending transactions. Fees received or paid for all securities
borrowing and lending transactions are recorded in Interest
revenue or Interest expense at the contractually specified rate.
Where the conditions of ASC 210-20-45-1, Balance
Sheet—Offsetting: Right of Setoff Conditions, are met,
securities borrowing and lending transactions are presented net
on the Consolidated Balance Sheet.
The Company monitors the fair value of securities
borrowed or loaned on a daily basis and obtains or posts
additional collateral in order to maintain contractual margin
protection.
As described in Note 26, the Company uses a discounted
cash flow technique to determine the fair value of securities
lending and borrowing transactions.
Repurchase and Resale Agreements
Securities sold under agreements to repurchase (repos) and
securities purchased under agreements to resell (reverse repos)
do not constitute a sale (or purchase) of the underlying
securities for accounting purposes and are treated as
collateralized financing transactions. As described in Note 27,
the Company has elected to apply fair value accounting to
certain portions of such transactions, with changes in fair
value reported in earnings. Any transactions for which fair
value accounting has not been elected are recorded at the
amount of cash advanced or received plus accrued interest.
Irrespective of whether the Company has elected fair value
accounting, interest paid or received on all repo and reverse
repo transactions is recorded in Interest expense or Interest
revenue at the contractually specified rate.
Where the conditions of ASC 210-20-45-11, Balance
Sheet—Offsetting: Repurchase and Reverse Repurchase
Agreements, are met, repos and reverse repos are presented net
on the Consolidated Balance Sheet.
The Company’s policy is to take possession of securities
purchased under reverse repurchase agreements. The
Company monitors the fair value of securities subject to
repurchase or resale on a daily basis and obtains or posts
additional collateral in order to maintain contractual margin
protection.
As described in Note 26, the Company uses a discounted
cash flow technique to determine the fair value of repo and
reverse repo transactions.
154
Loans
Loans that are held-for-investment (HFI) are classified as
Loans on the Consolidated Balance Sheet and are reported at
their outstanding principal balances net of any unearned
income and unamortized deferred fees and costs, except for
credit card receivable balances, which include accrued interest
and fees, and certain loans for which Citi has elected the fair
value option (see “Loans at Fair Value” below). Loan
origination fees and certain direct origination costs are
generally deferred and recognized as adjustments to income
over the lives of the related loans.
The related cash flows for HFI loans are included within
the cash flows from the investing activities category in the
Consolidated Statement of Cash Flows on the line Change in
loans. However, when the initial intent for holding a loan has
changed from HFI to held-for-sale (HFS), the loan is
reclassified to HFS and included in Other assets, but the
related cash flows continue to be reported in cash flows from
investing activities in the Consolidated Statement of Cash
Flows on the line Proceeds from sales and securitizations of
loans. See “Loans Held-for-Sale” and “Changes in Loan
Classification” below.
Consumer Loans
Consumer loans represent loans and leases managed primarily
by the USPB, Wealth and All Other—Legacy Franchises
businesses (except Mexico SBMM loans).
Delinquency Status
Delinquency status is monitored and considered a key
indicator of credit quality of consumer loans. Principally, the
U.S. residential first mortgage loans use the Mortgage Bankers
Association (MBA) method of reporting delinquencies, which
considers a loan delinquent if a monthly payment has not been
received by the end of the day immediately preceding the
loan’s next due date. All other loans use a method of reporting
delinquencies that considers a loan delinquent if a monthly
payment has not been received by the close of business on the
loan’s next due date.
Consumer Non-accrual Policies
For installment and real estate loans, Citi’s non-accrual policy
is that generally, prior to charge-off, interest accrual ceases
when payments are 90 days contractually past due (DPD),
with the exception of certain loans insured by U.S.
government agencies.
Credit cards and other unsecured revolving loans
generally are not subject to non-accrual policies and continue
to accrue interest until charged off at 180 DPD. Details of
Citi’s charge-off policies are provided further below.
Consumer Loan Modification, Re-Aging and Return to
Accrual Status
Citi seeks to modify consumer loans to borrowers
experiencing financial difficulty to minimize losses, avoid
foreclosure or repossession of collateral and ultimately
maximize payments received from the borrowers. Citi uses
various metrics to identify consumer borrowers experiencing
financial difficulty, with the primary indicator being
delinquency at the time of modification.
For U.S. consumer loans, generally one of the conditions
to qualify for modification is that a minimum number of
payments (typically ranging from one to three) must be made.
For mortgage loans, Citi enters into a trial modification with
the borrower, which generally represents a three-month period
during which the borrower makes monthly payments under the
anticipated modified payment terms, before entering into a
permanent modification. These loans under trial modification
continue to age and accrue interest in accordance with their
original contractual terms.
Upon permanent modification, the loan is re-aged to
current status. Specifically, re-aging practices for certain open-
ended consumer loans, such as credit cards, are governed by
Federal Financial Institutions Examination Council (FFIEC)
guidelines, which require at least three consecutive minimum
monthly payments or the equivalent amount, to be re-aged to
current status. In addition, re-aging is subject to limitations,
generally once in 12 months and twice in five years.
Furthermore, FHA and Department of Veterans Affairs (VA)
loans may only be modified under those respective agencies’
guidelines, and payments are not always required in order to
re-age a modified loan to current.
In general, a loan returns to accrual status when none of
its principal and interest is due and unpaid and the bank
expects the full collection of all contractual principal and
interest (including any prior charge-offs) on such loan. For
modified loans, the policy for returning to accrual status varies
by product and/or region. For regulated bank entities, such
modified loans are returned to accrual status if a credit
evaluation at the time of, or subsequent to, the modification
indicates the borrower is able to meet the restructured terms,
and the borrower is current and has demonstrated a reasonable
period of sustained payment performance (minimum six
months of consecutive payments).
Consumer Charge-Off Policies
Unless the loan had been modified and subsequently returned
to accrual status per the above policies, the loan is charged off
following the general guidelines below:
•
Unsecured installment loans are charged off at 120 DPD,
or if in bankruptcy, within 60 days of notification of filing
by the bankruptcy court, if earlier.
•
Unsecured revolving loans and credit card loans are
charged off at 180 DPD, or if in bankruptcy, within 60
days of notification of filing by the bankruptcy court, if
earlier.
•
Loans secured with non-real estate collateral are written
down to the estimated value of the collateral, less costs to
sell, at 120 DPD.
•
Real estate-secured loans are written down to the
estimated value of the property, less costs to sell, at 180
DPD, with the following exceptions: (i) if the decision is
made not to foreclose, loans are charged off no later than
180 DPD; or (ii) if in bankruptcy, other than FHA-insured
loans, loans are charged off within 60 days of notification
of filing by the bankruptcy court, if earlier.
155
Corporate Loans
Corporate loans represent loans and leases managed by
Services, Markets and Banking and the Mexico SBMM
component of All Other—Legacy Franchises. Corporate loans
are placed on a cash (non-accrual) basis when it is determined,
based on actual experience and a forward-looking assessment
of the collectibility of the loan in full, that the payment of
interest or principal is doubtful or when interest or principal is
90 days past due, except when the loan is well collateralized
and in the process of collection. When a corporate loan is
placed on non-accrual, any interest accrued is reversed and
charged against current earnings, and interest is thereafter
included in earnings only to the extent actually received in
cash. When there is doubt regarding the ultimate collectibility
of principal, all cash receipts are thereafter applied to reduce
the recorded investment in the loan. Cash-basis loans are
returned to accrual status when all contractual principal and
interest amounts are reasonably assured of repayment and
there is a sustained period of repayment performance in
accordance with the contractual terms.
Corporate loans are written down to the extent that
principal is deemed to be uncollectible.
A financial asset is considered collateral-dependent when
the debtor is experiencing financial difficulty and repayment is
expected to be provided substantially through the operation or
sale of the collateral. For corporate loans that are collateral
dependent, the fair value of collateral (less costs to sell, as
applicable) is used to estimate expected credit losses.
Loans Held-for-Sale
Loans that have been identified for sale are classified as loans
HFS and included in Other assets. With the exception of those
loans for which the fair value option has been elected, HFS
loans are accounted for at the lower of cost or market value,
with any write-downs or subsequent recoveries charged to
Other revenue. The related cash flows are classified in the
Consolidated Statement of Cash Flows in the cash flows from
operating activities category on the line Change in loans HFS.
Gains and losses on loans HFS are generally presented in
Other revenue. Gains on sales of fully or partially charged-off
loans are presented as gross credit recoveries in the Provision
for credit losses up to the amount of prior charge-offs.
Loans at Fair Value
As described in Note 27, Citi has elected fair value accounting
for certain loans. Such loans are not subject to an allowance
for credit losses. Instead, they are carried at fair value with
changes in fair value reported in earnings. Interest income on
such loans is recorded in Interest revenue at the contractually
specified rate.
The practice of Citi’s U.S. prime mortgage business has
been to sell substantially all of its conforming loans. As such,
U.S. prime mortgage conforming loans are classified as HFS
and the fair value option is elected at origination, with changes
in fair value recorded in Other revenue.
Changes in Loan Classification
Changes to the initial classification of a loan should be made
only when there is a demonstrated change in management’s
intent and ability (i.e., management now has the intent and
ability to sell the loan when it had previously intended to hold
the loan for the foreseeable future or vice versa).
If a loan changes its classification from HFI to HFS, the
related allowance for credit losses is reversed in earnings
through the Provision for credit losses. Also, if the loan’s fair
value is lower than the loan’s amortized cost basis due to
credit deterioration, the initial downward difference is
recorded as a direct write-off of the loan’s amortized cost basis
through gross credit losses, which establishes the new cost
basis of the loan immediately prior to transfer to HFS for
purposes of applying the lower of cost or market value.
Otherwise, any write down is recorded as an HFS valuation
allowance (contra-Other assets) and charged to Other revenue.
On the other hand, if a loan changes its classification from
HFS to HFI, any HFS valuation allowance is reversed through
Other revenue. The loan is transferred to HFI at its amortized
cost basis and assessed for an allowance for credit losses.
Allowances for Credit Losses (ACL)
The current expected credit losses (CECL) methodology is
based on relevant information about past events, including
historical experience, current conditions and reasonable and
supportable (R&S) forecasts that affect the collectibility of the
reported financial asset balances. If the asset’s life extends
beyond the R&S forecast period, then historical experience is
considered over the remaining life of the assets in the ACL.
The resulting ACL is adjusted in each subsequent reporting
period through Provisions for credit losses in the Consolidated
Statement of Income to reflect changes in history, current
conditions and forecasts as well as changes in asset positions
and portfolios. ASC 326 defines the ACL as a valuation
account that is deducted from the amortized cost of a financial
asset to present the net amount that management expects to
collect on the financial asset over its expected life. All
financial assets carried at amortized cost are in the scope of
ASC 326, while assets measured at fair value are excluded.
See Note 14 for a discussion of impairment on available-for-
sale (AFS) securities.
Increases and decreases to the allowances are recorded in
Provisions for credit losses. The CECL methodology utilizes a
lifetime expected credit loss (ECL) measurement objective for
the recognition of credit losses for held-for-investment (HFI)
loans, held-to-maturity (HTM) debt securities, receivables and
other financial assets measured at amortized cost at the time
the financial asset is originated or acquired. Within the life of
a loan or other financial asset, the methodology generally
results in earlier recognition of the provision for credit losses
and the related ACL.
Estimation of ECLs requires Citi to make assumptions
regarding the likelihood and severity of credit loss events and
their impact on expected cash flows, which drive the
probability of default (PD), loss given default (LGD) and
exposure at default (EAD) models and, where Citi discounts
the ECL, using discounting techniques for certain products.
Citi considers a multitude of global macroeconomic
variables for the base, upside and downside probability-
weighted macroeconomic scenario forecasts it uses to estimate
the ACL. Citi’s forecasts of the U.S. unemployment rate and
U.S. real GDP growth rate represent the key macroeconomic
variables that most significantly affect its estimate of the ACL.
156
Under the base macroeconomic forecast as of 4Q24, U.S. real
GDP growth is expected to slow during 2025 and 2026, while
the unemployment rate is expected to increase in 2025, but
decline in 2026.
The macroeconomic scenario weights are estimated using
a statistical model, which, among other factors, takes into
consideration key macroeconomic drivers of the ACL, severity
of the scenario and other macroeconomic uncertainties and
risks. Citi evaluates scenario weights on a quarterly basis.
Citi’s downside scenario incorporates more adverse
macroeconomic assumptions than the base scenario. For
example, compared to the base scenario, Citi’s downside
scenario reflects a recession, including an elevated average
U.S. unemployment rate of 6.8% over the eight-quarter R&S
period, with a peak difference of 3.4% in the second quarter of
2026. The downside scenario also reflects a year-over-year
U.S. real GDP contraction in 2025 of 1.8%, with a peak
quarter-over-quarter difference to the base scenario of 1.3%.
The following are the main factors and interpretations that
Citi considers when estimating the ACL under the CECL
methodology:
•
CECL reserves are estimated over the contractual term of
the financial asset, which is adjusted for expected
prepayments. Expected extensions are generally not
considered unless the option to extend the loan cannot be
canceled unilaterally by Citi.
•
Credit enhancements that are not freestanding (such as
those that are included in the original terms of the contract
or those executed in conjunction with the lending
transaction) are considered loss mitigants for purposes of
CECL reserve estimation.
•
For unconditionally cancelable accounts (generally credit
cards), reserves are based on the expected life of the
balance as of the evaluation date (assuming no further
charges) and do not include any undrawn commitments
that are unconditionally cancelable. Reserves are included
for undrawn commitments for accounts that are not
unconditionally cancelable (such as letters of credit and
corporate loan commitments, home equity lines of credit
(HELOCs), undrawn mortgage loan commitments and
financial guarantees).
•
CECL models are designed to be economically sensitive.
They utilize the macroeconomic forecasts provided by
Citi’s enterprise scenario group that are approved by
senior management. Analysis is performed and
documented to determine the necessary qualitative
management adjustment (QMA) to capture idiosyncratic
events and model uncertainty.
•
The portion of the forecast that reflects the enterprise
scenario group’s R&S period indicates the maximum
length of time its models can produce a R&S
macroeconomic forecast, after which mean reversion
reflecting historical loss experience is used for the
remaining life of the loan to estimate expected credit
losses. For the loss forecast, businesses consume the
macroeconomic forecast as determined to be appropriate
and justifiable.
Citi’s ability to forecast credit losses over the R&S period
is based on the ability to forecast economic activity over a
reasonable and supportable time window. The R&S period
reflects the overall ability to have a reasonable and
supportable forecast of credit loss based on economic
forecasts. The R&S forecast period for consumer and
corporate loans is eight quarters.
•
The loss models consume all or a portion of the R&S
economic forecast and then revert to historical loss
experience.
•
The ACL incorporates provisions for accrued interest on
products that are not subject to a non-accrual and timely
write-off policy (e.g., credit cards, etc.).
•
Citi uses the most recent available information to inform
its macroeconomic forecasts, allowing sufficient time for
analysis of the results and corresponding approvals. Key
variables are reviewed for significant changes through
year end and changes to portfolio positions are reflected
in the ACL.
•
Reserves are calculated at an appropriately granular level
and on a pooled basis where financial assets share risk
characteristics. At a minimum, reserves are calculated at a
portfolio level (product and country). Where a financial
asset does not share risk characteristics with any of the
pools, it is evaluated for credit losses individually.
Quantitative and Qualitative Components of the ACL
The loss likelihood and severity models use both internal and
external information and are sensitive to forecasts of different
macroeconomic conditions. For the quantitative component,
Citi uses multiple macroeconomic scenarios and associated
probabilities to estimate the ECL. Estimates of these ECLs are
based upon (i) Citigroup’s internal system of credit risk
ratings, (ii) historical default and loss data, including
comprehensive internal history and rating agency information
regarding default rates and internal data on the severity of
losses in the event of default, and (iii) a R&S forecast of future
macroeconomic conditions. ECL is determined primarily by
utilizing models for the borrowers’ PD, LGD and EAD.
Adjustments may be made to this data, including (i)
statistically calculated estimates to cover the historical
fluctuation of the default rates over the credit cycle, the
historical variability of loss severity among defaulted loans
and the degree to which there are large obligor concentrations
in the global portfolio, and (ii) adjustments made for
specifically known items, such as current environmental
factors and credit trends.
Any adjustments needed to the modeled expected losses
in the quantitative calculations are addressed through a
qualitative adjustment. The qualitative adjustment considers,
among other things: certain portfolio characteristics and
concentrations; collateral coverage; model limitations;
idiosyncratic events; and other relevant criteria under banking
supervisory guidance for the ACL. The qualitative adjustment
also reflects the estimated impact of the pandemic on the
economic forecasts and the impact on credit loss estimates.
The total ACL is composed of the quantitative and qualitative
components. Citi’s qualitative component declined year-over-
year, primarily driven by (i) the full release of COVID-19–
157
related uncertainty reserves, as the portfolio delinquencies and
losses have increased and these risks are now captured in the
quantitative component of the ACL, and (ii) releases related to
reserves for specific risks and uncertainties impacting
vulnerable industries and regions, partially offset by increases
in transfer risk associated with exposures outside of the U.S.,
driven by safety and soundness considerations under U.S.
banking law. See “Accounting Changes” below for
information about how the calculation of the quantitative
component of the ACL changed in 2024.
Consumer Loans
For consumer loans, most portfolios including North America
cards, mortgages and personal installment loans (PILs) are
covered by the PD, LGD and EAD loss forecasting models.
Some smaller international portfolios are covered by
econometric models where the gross credit loss (GCL) rate is
forecast. The modeling of all retail products is performed by
examining risk drivers for a given portfolio; these drivers
relate to exposures with similar credit risk characteristics and
consider past events, current conditions and R&S forecasts.
Under the PD x LGD x EAD approach, GCLs and recoveries
are captured on an undiscounted basis. Citi incorporates
expected recoveries on loans into its reserve estimate,
including expected recoveries on assets previously written off.
CECL defines the exposure’s expected life as the
remaining contractual maturity including any expected
prepayments. Subsequent changes to the contractual terms that
are the result of a re-underwriting are not included in the
loan’s expected CECL life.
Citi does not establish reserves for the uncollectible
accrued interest on non-revolving consumer products, such as
mortgages and installment loans, which are subject to a non-
accrual and timely write-off policy at 90 days past due. As
such, only the principal balance is subject to the CECL reserve
methodology and interest does not attract a further reserve.
For credit cards, Citi uses the payment rate approach,
which leverages payment rate curves, to determine the
payments that should be applied to liquidate the end-of-period
balance (CECL balance) in the estimation of EAD. The
payment rate approach uses customer payment behavior
(payment rate) to establish the portion of the CECL balance
that will be paid each month. These payment rates are defined
as the percentage of principal payments received in the
respective month divided by the prior month’s billed principal
balance. The liquidation (CECL payment) amount for each
forecast period is determined by multiplying the CECL
balance by that period’s forecasted payment rate. The
cumulative sum of these payments less the CECL balance
produces the balance liquidation curve. Citi does not apply a
non-accrual policy to credit card receivables; rather, they are
subject to full charge-off at 180 days past due or bankruptcy.
As such, the entire customer balance up until write-off,
including accrued interest and fees, is subject to the CECL
reserve methodology.
Corporate Loans, HTM Securities and Other Assets
Citi records allowances for credit losses on all financial assets
carried at amortized cost that are in the scope of CECL,
including corporate loans classified as HFI, HTM debt
securities and Other assets. Discounting techniques are
applied for corporate loans classified as HFI and HTM
securities. All cash flows are fully discounted to the reporting
date. The ACL includes Citi’s estimate of all credit losses
expected to be incurred over the estimated full contractual life
of the financial asset. The contractual life of the financial asset
generally does not include expected extensions, renewals or
modifications. Where Citi has an unconditional option to
extend the contractual term, Citi does not consider the
potential extension in determining the contractual term;
however, where the borrower has the sole right to exercise the
extension option without Citi’s approval, Citi does consider
the potential extension in determining the contractual term.
The Company primarily bases its ACL on models that
assess the likelihood and severity of credit events and their
impact on cash flows under R&S forecasted economic
scenarios. Allowances consider the probability of the
borrower’s default, the loss the Company would incur upon
default and the borrower’s exposure at default. Such models
discount the present value of all future cash flows, using the
asset’s effective interest rate (EIR). Citi applies a more
simplified approach based on historical loss rates to certain
exposures recorded in Other assets and certain loan exposures
in the Private Bank within Consumer loans.
The Company considers the risk of nonpayment to be zero
for U.S. Treasuries and U.S. government-sponsored agency
guaranteed mortgage-backed securities (MBS) and, as such,
Citi does not have an ACL for these securities. For all other
HTM debt securities, ECLs are estimated using PD models
and discounting techniques, which incorporate assumptions
regarding the likelihood and severity of credit losses. For
structured securities, specific models use relevant assumptions
for the underlying collateral type. A discounting approach is
applied to HTM direct obligations of a single issuer, similar to
that used for corporate HFI loans.
Other Financial Assets with Zero Expected Credit Losses
For certain financial assets, zero expected credit losses will be
recognized where the expectation of nonpayment of the
amortized cost basis is zero, based on there being no history of
loss and the nature of the receivables.
Secured Financing Transactions
Most of Citi’s reverse repurchase agreements, securities
borrowing arrangements and margin loans require that the
borrower continually adjust the amount of the collateral
securing Citi’s interest, primarily resulting from changes in the
fair value of such collateral. In such arrangements, ACLs are
recorded based only on the amount by which the asset’s
amortized cost basis exceeds the fair value of the collateral.
No ACLs are recorded where the fair value of the collateral is
equal to or exceeds the asset’s amortized cost basis, as Citi
does not expect to incur credit losses on such well-
collateralized exposures. For certain margin loans presented in
Loans on the Consolidated Balance Sheet, ACLL is estimated
using the same approach as corporate loans.
158
Accrued Interest
CECL permits entities to make an accounting policy election
not to reserve for interest, if the entity has a policy in place
that will result in timely reversal or write-off of interest.
However, when a non-accrual or timely charge-off policy is
not applied, an ACL is recognized on accrued interest at 90
days past due. For HTM debt securities, Citi established a non-
accrual policy that results in timely write-off of accrued
interest. For corporate loans, where a timely charge-off policy
is used, Citi has elected to recognize an ACL on accrued
interest receivable. The LGD models for corporate loans
include an adjustment for estimated accrued interest.
Reasonably Expected TDRs (in 2022 and prior years)
For corporate loans, the reasonable expectation of the TDR
concept required that the contractual life over which ECLs are
estimated be extended when a TDR that results in a tenor
extension was reasonably expected. Reasonably expected
TDRs were included in the life of the asset. A discounting
technique or collateral-dependent practical expedient is used
for non-accrual and TDR loan exposures that do not share risk
characteristics with other loans and are individually assessed.
Loans modified in accordance with the CARES Act and bank
regulatory guidance are not classified as TDRs.
In 2023, the reasonably expected TDRs accounting was
replaced by modifications of loans to borrowers experiencing
financial difficulty accounting. See “Accounting Changes—
TDRs and Vintage Disclosures” below for a description of this
new accounting.
Purchased Credit-Deteriorated (PCD) Assets
ASC 326 requires entities that have acquired financial assets
(such as loans and HTM securities) with an intent to hold, to
evaluate whether those assets have experienced a more-than-
insignificant deterioration in credit quality since origination.
These assets are subject to specialized accounting at initial
recognition under CECL. Subsequent measurement of PCD
assets will remain consistent with other purchased or
originated assets, i.e., non-PCD assets. CECL introduced the
notion of PCD assets, which replaced purchased credit
impaired (PCI) accounting under prior U.S. GAAP.
CECL requires the estimation of credit losses to be
performed on a pool basis unless a PCD asset does not share
characteristics with any pool. If certain PCD assets do not
meet the conditions for aggregation, those PCD assets should
be accounted for separately. This determination must be made
at the date the PCD asset is purchased. In estimating ECLs
from day 2 onward, pools can potentially be reassembled
based upon similar risk characteristics. When PCD assets are
pooled, Citi determines the amount of the initial ACL at the
pool level. The amount of the initial ACL for a PCD asset
represents the portion of the total discount at acquisition that
relates to credit and is recognized as a “gross-up” of the
purchase price to arrive at the PCD asset’s (or pool’s)
amortized cost. Any difference between the unpaid principal
balance and the amortized cost is considered to be related to
non-credit factors and results in a discount or premium, which
is amortized to interest income over the life of the individual
asset (or pool). Direct expenses incurred related to the
acquisition of PCD assets and other assets and liabilities in a
business combination are expensed as incurred. Subsequent
accounting for acquired PCD assets is the same as the
accounting for originated assets; changes in the allowance are
recorded in Provisions for credit losses.
Consumer
Citi does not purchase whole portfolios of PCD assets in its
retail businesses. However, there may be a small portion of a
purchased portfolio that is identified as PCD at the purchase
date. Interest income recognition does not vary between PCD
and non-PCD assets. A consumer financial asset is considered
to be more-than-insignificantly credit deteriorated if it is more
than 30 days past due at the purchase date.
Corporate
Citi generally classifies wholesale loans and debt securities
classified as HTM or AFS as PCD when both of the following
criteria are met: (i) the purchase price discount is at least 10%
of par and (ii) the purchase date is more than 90 days after the
origination or issuance date. Citi classifies HTM beneficial
interests rated AA- and lower obtained at origination from
certain securitization transactions as PCD when there is a
significant difference (i.e., 10% or greater) between
contractual cash flows, adjusted for prepayments, and
expected cash flows at the date of recognition.
Reserve Estimates and Policies
Management provides reserves for an estimate of lifetime
ECLs in the funded loan portfolio on the Consolidated
Balance Sheet in the form of an ACL. These reserves are
established in accordance with Citigroup’s credit reserve
policies, as approved by the Audit Committee of the Citigroup
Board of Directors. Citi’s Chief Risk Officer and Chief
Financial Officer review the adequacy of the credit loss
reserves each quarter with risk management and finance
representatives for each applicable business area. Applicable
business areas include those having classifiably managed
portfolios, where internal credit risk ratings are assigned
(primarily Services, Markets, Banking and Wealth) and
delinquency-managed portfolios (primarily USPB) or
modified consumer loans, where concessions were granted due
to the borrowers’ financial difficulties. The aforementioned
representatives for these business areas present recommended
reserve balances for their funded and unfunded lending
portfolios along with supporting quantitative and qualitative
data discussed below.
Estimated Credit Losses for Portfolios of Performing
Exposures
Risk management and finance representatives who cover
business areas with delinquency-managed portfolios
containing smaller-balance homogeneous loans present their
recommended reserve balances based on leading credit
indicators, including loan delinquencies and changes in
portfolio size as well as economic trends, including current
and future housing prices, unemployment, length of time in
foreclosure, costs to sell and GDP. This methodology is
applied separately for each product within each geographic
region in which these portfolios exist. This evaluation process
is subject to numerous estimates and judgments.
159
Risk management and finance representatives who cover
business areas with classifiably managed portfolios present
their recommended reserve balances based on the frequency of
default, risk ratings, loss recovery rates, size and diversity of
individual large credits, and ability of borrowers with foreign
currency obligations to obtain the foreign currency necessary
for orderly debt servicing for countries with currency
restrictions. Changes in these estimates could have a direct
impact on the credit costs in any period and could result in a
change in the allowance.
Allowance for Unfunded Lending Commitments
Credit loss reserves are recognized on all off-balance sheet
commitments that are not unconditionally cancelable.
Corporate loan EAD models include an incremental usage
factor (or credit conversion factor) to estimate ECLs on
amounts undrawn at the reporting date. Off-balance sheet
commitments include unfunded exposures, revolving facilities,
securities underwriting commitments, letters of credit,
HELOCs and financial guarantees (excluding performance
guarantees). This reserve is classified on the Consolidated
Balance Sheet in Other liabilities. Changes to the allowance
for unfunded lending commitments are recorded in Provision
for credit losses on unfunded lending commitments.
Mortgage Servicing Rights
Mortgage servicing rights (MSRs) are recognized as intangible
assets when the Company sells or securitizes loans acquired
through purchase or origination and retains the right to service
the loans. Mortgage servicing rights are accounted for at fair
value, with changes in value recorded in Other revenue in the
Company’s Consolidated Statement of Income.
For additional information on the Company’s MSRs, see
Notes 17, 23 and 26.
Goodwill
Goodwill represents the excess of acquisition cost over the fair
value of net tangible and intangible assets acquired in a
business combination. Goodwill is subject to annual
impairment testing and interim assessments between annual
tests if an event occurs or circumstances change that would
more-likely-than-not reduce the fair value of a reporting unit
below its carrying amount. The Company has determined that
its reporting units are at the reportable operating segment level
or one level below.
The Company has an option to assess qualitative factors
to determine if it is necessary to perform the goodwill
impairment test. If, after assessing the totality of events or
circumstances, the Company determines that it is not more-
likely-than-not that the fair value of a reporting unit is less
than its carrying amount, no further testing is necessary. If,
however, the Company determines that it is more-likely-than-
not that the fair value of a reporting unit is less than its
carrying amount, then the Company must perform the
quantitative test.
The Company has an unconditional option to bypass the
qualitative assessment for any reporting unit in any reporting
period and proceed directly to the quantitative test.
The quantitative test requires a comparison of the fair
value of an individual reporting unit to its carrying value,
including goodwill. If the fair value of a reporting unit is in
excess of the carrying value, the related goodwill is considered
not impaired and no further analysis is necessary. If the
carrying value of a reporting unit exceeds the fair value, an
impairment loss is recognized in an amount equal to that
excess, limited to the total amount of goodwill allocated to
that reporting unit.
Upon any business disposition, goodwill is allocated to,
and derecognized with, the disposed business based on the
ratio of the fair value of the disposed business to the fair value
of the reporting unit.
During the year ended December 31, 2022, the Company
voluntarily changed its annual impairment assessment date
from July 1 to October 1.
Additional information on Citi’s goodwill impairment
testing can be found in Note 17.
Intangible Assets
Intangible assets—including core deposit intangibles, present
value of future profits, purchased credit card relationships,
credit card contract-related intangibles, other customer
relationships and other intangible assets, but excluding MSRs
—are amortized over their estimated useful lives. Credit card
contract-related intangibles include fixed and unconditional
costs incurred to renew or extend the contract with a card
partner. In estimating the useful life of a credit card contract-
related intangible, the Company considers the probability of
contract renewal or extension to determine the period that the
asset is expected to contribute future cash flows. Intangible
assets that are deemed to have indefinite useful lives, primarily
trade names, are not amortized and are subject to annual
impairment tests. An impairment exists if the carrying value of
the indefinite-lived intangible asset exceeds its fair value. For
other intangible assets subject to amortization, an impairment
is recognized if the carrying amount is not recoverable and
exceeds the fair value of the intangible asset.
Premises and Equipment
Premises and equipment includes lease right-of-use assets,
property and equipment (including purchased and developed
software), net of depreciation and amortization. Substantially
all lease right-of-use assets are amortized on a straight-line
basis over the lease term, and substantially all property and
equipment are depreciated or amortized on a straight-line basis
over the useful life of the asset. The estimated useful lives
range up to 50 years for buildings and improvements, up to 15
years for furniture and equipment, up to 10 years for internal-
use software and the shorter of the estimated useful life or the
lease term for leasehold improvements.
160
Leases
As a Lessee
Citi enters into lease agreements to obtain rights to use assets
for its business operations. Substantially all of the Company’s
lessee arrangements are operating leases for premises and
equipment, including real estate and various types of
equipment. Lease liabilities and right-of-use (ROU) assets are
recognized when Citi enters into these leases and represent
Citi’s obligations and rights to use these assets over the period
of the leases, and may be remeasured for certain
modifications. These leases may contain renewal and
extension options and early termination features; however,
these options do not impact the lease term unless the Company
is reasonably certain that it will exercise the options. In certain
instances, the Company may have lease agreements with lease
and non-lease components. In these instances, the Company
has elected to apply the practical expedient and account for the
lease and non-lease components as a single lease component
for all leases.
At lease commencement, lease liabilities are recognized
based on the present value of the remaining lease payments
and discounted using the Company’s incremental borrowing
rate. ROU assets initially equal the lease liability, adjusted for
any lease payments made prior to lease commencement and
for any lease incentives.
ROU assets and lease liabilities are included in Premises
and equipment and Other liabilities, respectively. All leases
are recorded on the Consolidated Balance Sheet except those
with an initial term of less than 12 months, for which the
Company has made the short-term lease election. Lease
expense is recognized on a straight-line basis over the lease
term and is recorded in Premises and equipment expense in
the Consolidated Statement of Income. Variable lease costs
are recognized in the period in which the obligation for those
payments is incurred.
As a Lessor
The Company’s operating leases and financing leases, which
include both direct financing and sales-type leases, where Citi
is a lessor, are not significant to the Consolidated Financial
Statements.
Other Assets and Other Liabilities
Other assets include, among other items, loans HFS, deferred
tax assets, equity method investments, interest and fees
receivable, repossessed assets, other receivables and assets
from businesses classified as HFS that are reclassified from
other balance sheet line items. Other liabilities include, among
other items, accrued expenses, lease liabilities, deferred tax
liabilities, reserves for legal claims and legal fee accruals,
taxes, unfunded lending commitments, repositioning reserves,
other payables and liabilities from businesses classified as
HFS that are reclassified from other balance sheet line items.
Legal fee accruals are recognized as incurred.
Other Real Estate Owned and Repossessed Assets
Real estate or other assets received through foreclosure or
repossession are generally reported in Other assets, net of a
valuation allowance for selling costs and subsequent declines
in fair value.
Debt
Short-term borrowings and Long-term debt are accounted for
at amortized cost, except where the Company has elected to
report the debt instruments (including certain structured notes)
at fair value, or debt that is in a fair value hedging relationship.
Changes in the fair value of debt instruments carried at fair
value under a fair value election are recorded in Principal
transactions, other than adjustments related to changes in the
Company’s credit, which are recorded in Other comprehensive
income. Premiums, discounts and issuance costs on long-term
debt accounted for at amortized cost are amortized over the
contractual term using the effective interest method.
Instrument-Specific Credit Risk
Citi presents separately in AOCI the portion of the total change
in the fair value of a liability resulting from a change in the
instrument-specific credit risk, when management has elected
to measure the liability at fair value in accordance with the fair
value option for financial instruments. Accordingly, the
change in fair value of liabilities for which the fair value
option was elected related to changes in Citigroup’s own
credit spreads is presented in AOCI.
Employee Benefits Expense
Employee benefits expense includes current service costs of
pension and other postretirement benefit plans (which are
accrued on a current basis), contributions and unrestricted
awards under other employee plans, the amortization of
restricted stock awards and costs of other employee benefits.
For its most significant pension and postretirement benefit
plans (Significant Plans), Citigroup measures and discloses
plan obligations, plan assets and periodic plan expense
quarterly, instead of annually. The effect of remeasuring the
Significant Plan obligations and assets by updating plan
actuarial assumptions on a quarterly basis is reflected in AOCI
and periodic plan expense. All other plans (All Other Plans)
are remeasured annually. Benefits earned during the year are
reported in Compensation and benefits expenses and all other
components of the net annual benefit cost are reported in
Other operating expenses in the Consolidated Statement of
Income. See Note 8.
Stock-Based Compensation
The Company recognizes compensation expense related to
stock awards over the requisite service period, generally based
on the instruments’ grant-date fair value, reduced by actual
forfeitures as they occur. Compensation cost related to awards
granted to employees who meet certain age plus years-of-
service requirements (retirement-eligible employees) is
accrued in the year prior to the grant date in the same manner
as the accrual for cash incentive compensation. Certain stock
awards with performance conditions or certain clawback
provisions are subject to variable accounting, pursuant to
161
which the associated compensation expense fluctuates with
changes in Citigroup’s common stock price. See Note 7.
Transactional and Tax Charges
Transactional and tax charges, which largely comprises costs
that are driven by revenues and transaction volumes, is
primarily composed of brokerage exchange and clearance
costs, exchange fees, regulatory memberships and certain
indirect, non-income tax payments that are not recorded in
Provision for income taxes in the Consolidated Statement of
Income.
Income Taxes
The Company is subject to the income tax laws of the U.S. and
its states and municipalities, as well as the non-U.S.
jurisdictions in which it operates. These tax laws are complex
and may be subject to different interpretations by the taxpayer
and the relevant governmental taxing authorities. In
establishing a provision for income tax expense, the Company
must make judgments and interpretations about these tax laws.
The Company must also make estimates about when in the
future certain items will affect taxable income in the various
tax jurisdictions, both domestic and foreign.
Disputes over interpretations of the tax laws may be
subject to review and adjudication by the court systems of the
various tax jurisdictions, or may be settled with the taxing
authority upon examination or audit. The Company treats
interest and penalties on income taxes as a component of
Income tax expense.
Deferred taxes are recorded for the future consequences
of events that have been, or will be, recognized in financial
statements or tax returns in different periods, based upon
enacted tax laws and rates. Deferred tax assets are recognized
subject to management’s judgment about whether realization
is more-likely-than-not. ASC 740, Income Taxes, sets out a
consistent framework to determine the appropriate level of tax
reserves to maintain for uncertain tax positions. This
interpretation uses a two-step approach wherein a tax benefit
is recognized if a position is more-likely-than-not to be
sustained. The amount of the benefit is then measured to be
the highest tax benefit that is more than 50% likely to be
realized. ASC 740 also sets out disclosure requirements to
enhance transparency of an entity’s tax reserves.
See Note 10 for a further description of the Company’s
tax provision and related income tax assets and liabilities.
Commissions, Underwriting and Principal Transactions
Commissions and fees revenues are recognized in income
when earned. Underwriting revenues are recognized in income
typically at the closing of the transaction. Principal
transactions revenues are recognized in income on a trade-
date basis. See Note 5 for a description of the Company’s
revenue recognition policies for Commissions and fees, and
Note 6 for details of Principal transactions revenue.
Earnings per Share
Earnings per share (EPS) is calculated using the two-class
method. Under the two-class method, all earnings (distributed
and undistributed) are allocated to common stock and
participating securities. Undistributed earnings are calculated
after deducting preferred stock dividends, any issuance cost
incurred at the time of issuance of redeemed preferred stock
and dividends paid and accrued to common stocks and RSU/
DSA share awards. Citi grants restricted and deferred share
awards under its shares-based compensation programs, which
entitle recipients to receive nonforfeitable dividends during the
vesting period on a basis equivalent to dividends paid to
holders of the Company’s common stock. These unvested
awards meet the definition of participating securities based on
their respective rights to receive nonforfeitable dividends, and
they are treated as a separate class of securities and are not
included in computing basic EPS.
Diluted EPS incorporates the potential impact of
contingently issuable shares, stock options and awards, which
require future service as a condition of delivery of the
underlying common stock. Anti-dilutive options and warrants
are disregarded in the EPS calculations. Diluted EPS is
calculated under both the two-class and treasury stock
methods, and the more dilutive amount is reported.
Participating securities are not included as incremental shares
in computing diluted EPS.
Use of Estimates
Management must make estimates and assumptions that affect
the Consolidated Financial Statements and the related Notes.
Such estimates are used in connection with certain fair value
measurements. See Note 26 for further discussions on
estimates used in the determination of fair value. Moreover,
estimates are significant in determining the amounts of other-
than-temporary impairments, impairments of goodwill and
other intangible assets, provisions for probable losses that may
arise from credit-related exposures, probable and estimable
losses related to litigation and regulatory proceedings, and
income taxes. While management makes its best judgment,
actual amounts or results could differ from those estimates.
Cash Equivalents and Restricted Cash Flows
Cash equivalents are composed of those amounts included in
Cash and due from banks and Deposits with banks. Certain
cash balances are restricted by regulatory or contractual
requirements. See Note 28 for additional information on
restricted cash.
Related Party Transactions
The Company has related party transactions with certain of its
subsidiaries and affiliates. These transactions, which are
primarily short-term in nature, include cash accounts,
collateralized financing transactions, margin accounts,
derivative transactions, charges for operational support and the
borrowing and lending of funds, and are entered into in the
ordinary course of business.
162
ACCOUNTING CHANGES
Segment Reporting (Topic 280): Improvements to
Reportable Segment Disclosures
In November 2023, the Financial Accounting Standards Board
(FASB) issued Accounting Standards Update (ASU) No.
2023-07, Segment Reporting (Topic 280): Improvements to
Reportable Segment Disclosures, intended to improve
reportable segments disclosure requirements primarily through
enhanced disclosures about significant segment expenses. The
ASU includes a requirement to disclose significant segment
expenses that are regularly provided to the chief operating
decision maker (CODM) and included within each reported
measure of segment profit or loss, the title and position of the
CODM, an explanation of how the CODM uses the reported
measure(s) of segment profit or loss in assessing segment
performance and deciding how to allocate resources, and all
segments’ profit or loss and assets disclosures currently
required annually by Topic 280 along with those introduced
by the ASU to be reported on an interim basis. The
amendments also clarified that public entities are not
precluded from reporting additional measures of a segment’s
profit or loss that are regularly used by the CODM.
Citi adopted the ASU on a retrospective basis for its
annual period ending December 31, 2024 and the ASU for the
interim period beginning January 1, 2025. See Note 3 for
further details.
Fair Value Measurement of Equity Securities Subject to
Contractual Sale Restrictions
In June 2022, the FASB issued ASU No. 2022-03, Fair Value
Measurement (Topic 820): Fair Value Measurement of Equity
Securities Subject to Contractual Sale Restrictions. The ASU
was issued to address diversity in practice whereby certain
entities included the impact of contractual restrictions when
valuing equity securities, and it clarifies that a contractual
restriction on the sale of an equity security should not be
considered part of the unit of account of the equity security
and, therefore, should not be considered in measuring fair
value. The ASU also includes requirements for entities to
disclose the fair value of equity securities subject to
contractual sale restrictions, the nature and remaining duration
of the restrictions and the circumstances that could cause a
lapse in the restrictions.
Citi adopted the ASU on January 1, 2024, which did not
impact the financial statements of the Company.
Accounting for Investments in Tax Credit Structures
In March 2023, the FASB issued ASU No. 2023-02,
Investments—Equity Method and Joint Ventures (Topic 323):
Accounting for Investments in Tax Credit Structures Using the
Proportional Amortization Method. The ASU expanded the
scope of tax equity investments eligible to apply the
proportional amortization method of accounting. Under the
proportional amortization method, the cost of an eligible
investment is amortized in proportion to the income tax credits
and other income tax benefits that are received by the investor,
with the amortization of the investment and the income tax
credits being presented net in the income statement as
components of income tax expense (benefit). The ASU
permits the Company to elect to use the proportional
amortization method to account for an expanded range of
eligible tax-incentivized investments if certain conditions are
met. Citi adopted the ASU on January 1, 2024, which did not
have a material impact to the financial statements of the
Company.
TDRs and Vintage Disclosures
In March 2022, the Financial Accounting Standards Board
(FASB) issued ASU No. 2022-02, Financial Instruments—
Credit Losses (Topic 326): Troubled Debt Restructurings and
Vintage Disclosures. Citi adopted the ASU on January 1,
2023, including the guidance on the recognition and
measurement of TDRs under the modified retrospective
approach.
Adopting these amendments resulted in a decrease to the
ACLL of $352 million and an increase in other assets related
to held-for-sale businesses of $40 million, with a
corresponding increase to retained earnings of $290 million
and a decrease in deferred tax assets of $102 million on
January 1, 2023. The ACL for corporate loans was unaffected
because the measurement approach used for corporate loans is
not in the scope of this ASU.
ASU 2022-02 eliminates the accounting and disclosure
requirements for TDRs, including the requirement to measure
the ACLL for TDRs using a discounted cash flow (DCF)
approach. With the elimination of TDR accounting
requirements, reasonably expected TDRs are no longer
considered when determining the term over which to estimate
expected credit losses. The ACLL for modified loans that are
collateral dependent continues to be based on the fair value of
the collateral.
Consumer Loans
Upon adoption of the ASU on January 1, 2023, Citi
discontinued the use of a DCF approach for consumer loans
formerly considered TDRs. Beginning January 1, 2023, Citi
measures the ACLL for all consumer loans under approaches
that do not incorporate discounting, primarily utilizing models
that consider the borrowers’ probability of default, loss given
default and exposure at default. In addition, upon adoption of
the ASU, Citi collectively evaluates smaller-balance
homogeneous loans formerly considered TDRs for expected
credit losses, whereas previously those loans had been
individually evaluated.
The ASU also requires disclosure of modifications of
loans to borrowers experiencing financial difficulty if the
modification involves principal forgiveness, an interest rate
reduction, an other-than-insignificant payment delay, a term
extension or a combination of those types of modifications. In
addition, the ASU requires the disclosure of current-period
gross write-offs by year of loan origination (vintage). See Note
15 for these new disclosures for periods beginning on and
after January 1, 2023.
163
Long-Duration Insurance Contracts
In August 2018, the FASB issued ASU No. 2018-12,
Financial Services—Insurance: Targeted Improvements to the
Accounting for Long-Duration Contracts, which changes the
existing recognition, measurement, presentation and
disclosures for long-duration contracts issued by an insurance
entity. Specifically, the guidance (i) improves the timeliness of
recognizing changes in the liability for future policy benefits
and prescribes the rate used to discount future cash flows for
long-duration insurance contracts, (ii) simplifies and improves
the accounting for certain market-based options or guarantees
associated with deposit (or account balance) contracts, (iii)
simplifies the amortization of deferred acquisition costs, and
(iv) introduces additional quantitative and qualitative
disclosures. Citi has certain insurance subsidiaries, primarily
in Mexico, that issue long-duration insurance contracts such as
traditional life insurance policies and life-contingent annuity
contracts that are impacted by the requirements of ASU
2018-12.
Citi adopted the targeted improvements in ASU 2018-12
on January 1, 2023, resulting in a $39 million decrease in
Other liabilities and a $27 million increase in AOCI, after-tax.
Fair Value Hedging—Portfolio Layer Method
In March 2022, the FASB issued ASU No. 2022-01,
Derivatives and Hedging (Topic 815): Fair Value Hedging—
Portfolio Layer Method, intended to better align hedge
accounting with an organization’s risk management strategies.
Specifically, the guidance expands the current single-layer
method to allow multiple hedge layers of a single closed
portfolio of qualifying assets, which include both prepayable
and non-prepayable assets. Upon the adoption of the guidance,
entities may elect to reclassify securities held-to-maturity to
the available-for-sale category provided that the reclassified
securities are designated in a portfolio hedge. Coincident with
the adoption of this ASU, on January 1, 2023, Citi transferred
HTM mortgage-backed securities with an amortized cost and
fair value of approximately $3.3 billion and $3.4 billion,
respectively, into AFS as permitted under the guidance, and
hedged them under the portfolio-layer method.
Reference Rate Reform
On December 21, 2022, the FASB issued ASU No. 2022-06,
Reference Rate Reform (Topic 848): Deferral of the Sunset
Date of Topic 848, which extends the period of time preparers
can utilize the reference rate reform relief guidance. In 2020,
the FASB issued ASU No. 2020-04, Reference Rate Reform
(Topic 848): Facilitation of the Effects of Reference Rate
Reform on Financial Reporting, which provides optional
guidance to ease the potential burden in accounting for (or
recognizing the effects of) reference rate reform on financial
reporting. In 2021, the U.K. Financial Conduct Authority
(FCA) delayed the intended cessation date of certain tenors of
USD LIBOR to June 30, 2023. To ensure that the relief in
Topic 848 covers the period of time during which a significant
number of modifications may take place, the ASU defers the
sunset date of Topic 848 from December 31, 2022 to
December 31, 2024. The extension allows Citi to transition its
remaining contracts and maintain hedge accounting. The ASU
was adopted by Citi upon issuance and did not impact
financial results in 2022.
Multiple Macroeconomic Scenarios-Based ACL Approach
During the second quarter of 2022, Citi refined its ACL
methodology to utilize multiple macroeconomic scenarios to
estimate its allowance for credit losses. The ACL was
previously estimated using a combination of a single base-case
forecast scenario as part of its quantitative component and a
component of its qualitative management adjustment that
reflects economic uncertainty from downside macroeconomic
scenarios. As a result of this change, Citi now explicitly
incorporates multiple macroeconomic scenarios—base,
upside, and downside—and associated probabilities in the
quantitative component when estimating its ACL, while still
retaining certain of its qualitative management adjustments.
This refinement represents a “change in accounting
estimate” under ASC Topic 250, Accounting Changes and
Error Corrections, with prospective application beginning in
the period of change. This change in accounting estimate
resulted in a decrease of approximately $0.3 billion in the
allowance for credit losses in the second quarter of 2022,
partially offsetting an increase of $0.8 billion in the allowance
for credit losses due to the increased macroeconomic
uncertainty and other factors in the second quarter of 2022.
FUTURE ACCOUNTING CHANGES
Disaggregation of Income Statement Expenses
In November 2024, the FASB issued ASU No. 2024-03,
Income Statement—Reporting Comprehensive Income—
Expense Disaggregation Disclosures (Subtopic 220-40), to
improve the disclosures of expenses by requiring public
business entities to provide further disaggregation of relevant
expense captions (i.e., employee compensation, depreciation,
intangible asset amortization) in a separate note to the
financial statements, a qualitative description of the amounts
remaining in relevant expense captions that are not separately
disaggregated quantitatively, and the total amount of selling
expenses and, in an annual reporting period, an entity’s
definition of selling expenses.
The transition method is prospective with the
retrospective method permitted, and the ASU will be effective
for Citi for its annual period ending December 31, 2027 and
interim periods for the interim period beginning January 1,
2028. Citi is currently evaluating the impact on its disclosures.
Accounting for and Disclosure of Crypto Assets
In December 2023, the FASB issued ASU No. 2023-08,
Intangibles—Goodwill and Other—Crypto Assets (Subtopic
350-60): Accounting for and Disclosure of Crypto Assets,
intended to improve the accounting for certain crypto assets by
requiring an entity to measure those assets at fair value each
reporting period, with changes in fair value recognized in net
income. The amendments also improve the information
provided to investors about an entity’s crypto asset holdings
by requiring disclosure about significant holdings, contractual
sale restrictions and changes during the reporting period. The
guidance is effective for fiscal years beginning after December
15, 2024, and interim periods within those fiscal years with
164
early adoption permitted. Citi does not hold any crypto assets
within the scope of the guidance.
Income Taxes (Topic 740): Improvements to Income Tax
Disclosures
In December 2023, the FASB issued ASU No. 2023-09,
Income Taxes (Topic 740): Improvements to Income Tax
Disclosures, intended to enhance the transparency and
decision usefulness of income tax disclosures. This guidance
requires that public business entities disclose on an annual
basis a tabular rate reconciliation in eight specific categories
disaggregated by nature and for foreign tax effects by each
jurisdiction that meets a 5% of pretax income multiplied by
the applicable statutory tax rate or greater threshold annually.
The eight categories include state and local income taxes, net
of federal income tax effect; foreign tax effects; enactment of
new tax laws; enactment of new tax credits; effect of cross-
border tax laws; valuation allowances; nontaxable items and
nondeductible items; and changes in unrecognized tax
benefits. Additional disclosures include qualitative description
of the state and local jurisdictions that contribute to the
majority (greater than 50%) of the effect of the state and local
income tax category and explanation of the nature and effect
of changes in individual reconciling items. The guidance also
requires entities annually to disclose income taxes paid (net of
refunds received) disaggregated by federal, state and foreign
taxes and by jurisdiction identified based on the same 5%
quantitative threshold.
The standard is effective for fiscal years beginning after
December 15, 2024. The transition method is prospective with
the retrospective method permitted. Citi plans to adopt the
ASU for the annual reporting period beginning on January 1,
2025, and is currently evaluating the impact of the ASU on
disclosures.
165
2. DISCONTINUED OPERATIONS, SIGNIFICANT
DISPOSALS AND OTHER BUSINESS EXITS
Summary of Discontinued Operations
Citi’s results from Discontinued operations consisted of
residual activities related to the sales of the Egg Banking plc
credit card business in 2011 and the German retail banking
business in 2008. All Discontinued operations results are
recorded within All Other.
The following table summarizes financial information for
all Discontinued operations:
In millions of dollars
2024
2023
2022
Total revenues, net of interest expense
$
— $ — $ (260)
Income (loss) from discontinued
operations
$
(2) $
(1) $ (272)
Benefit for income taxes
—
—
(41)
Income (loss) from discontinued
operations, net of taxes
$
(2) $
(1) $ (231)
During 2022, the Company finalized the settlement of
certain liabilities related to its legacy consumer operation in
the U.K. (the legacy operation), including an indemnification
liability related to its sale of the Egg Banking business in
2011, which led to the substantial liquidation of the legacy
operation. As a result, a CTA pretax loss (net of hedges) in
AOCI of approximately $400 million ($345 million after-tax)
was released to earnings in 2022 related to the legacy
operation. Out of the total CTA release, a $260 million pretax
loss ($221 million after-tax loss) was attributable to the Egg
Banking business noted above, reported in Discontinued
operations, and therefore the corresponding CTA release was
also reported in Discontinued operations during 2022. The
remaining CTA release of a $140 million pretax loss
($124 million after-tax loss) related to Legacy Holdings Assets
was reported as part of Continuing operations within All Other
—Legacy Franchises.
While the legacy operation was divested in multiple sales
over the years, each transaction did not result in substantial
liquidation given that Citi retained certain liabilities noted
above. These liabilities were gradually settled over time until
reaching the point of substantial liquidation during 2022,
triggering the release of the CTA loss to earnings.
Cash flows from Discontinued operations were not
material for the periods presented.
166
Significant Disposals
As of December 31, 2024, Citi had closed the sales of nine consumer banking businesses within All Other—Legacy Franchises:
Australia closed in the second quarter of 2022, the Philippines closed in the third quarter of 2022, Bahrain, Malaysia and Thailand
closed in the fourth quarter of 2022, India and Vietnam closed in the first quarter of 2023, Taiwan closed in the third quarter of 2023
and Indonesia closed in the fourth quarter of 2023. Five of these sales were identified as significant disposals and are included in the
table below. The gains and losses from the sales are included in the footnotes to the table below and represent life-to-date amounts,
periodically updated due to post-closing purchase price adjustments. As of December 31, 2024, there were no remaining assets or
liabilities included on Citi’s Consolidated Balance Sheet related to the significant disposals:
In millions of dollars
Income (loss) before taxes(6)
Consumer banking business in
Sale agreement date
Closing date
2024
2023
2022
Australia(1)
8/9/2021
6/1/2022
$
— $
— $
193
Philippines(2)
12/23/2021
8/1/2022
—
—
72
Thailand(3)
1/14/2022
11/1/2022
—
—
122
India(4)
3/30/2022
3/1/2023
—
2
194
Taiwan(5)
1/28/2022
8/12/2023
—
91
140
(1)
On June 1, 2022, Citi completed the sale of its Australia consumer banking business, which was part of All Other—Legacy Franchises. The business had
approximately $9.4 billion in assets, including $9.3 billion of loans (net of allowance of $140 million) and excluding goodwill. The total amount of liabilities was
$7.3 billion, including $6.8 billion in deposits. The transaction generated a pretax loss on sale of approximately $768 million ($644 million after-tax), subject to
closing adjustments, recorded in Other revenue. The loss on sale primarily reflected the impact of an approximate pretax $620 million CTA loss (net of hedges)
($470 million after-tax) already reflected in the AOCI component of equity. The sale closed on June 1, 2022, and the CTA-related balance was removed from
AOCI, resulting in a neutral CTA impact to Citi’s CET1 Capital. The income before taxes in the above table for Australia reflects Citi’s ownership through June 1,
2022.
(2)
On August 1, 2022, Citi completed the sale of its Philippines consumer banking business, which was part of All Other—Legacy Franchises. The business had
approximately $1.8 billion in assets, including $1.2 billion of loans (net of allowance of $80 million) and excluding goodwill. The total amount of liabilities was
$1.3 billion, including $1.2 billion in deposits. The sale resulted in a pretax gain on sale of approximately $618 million ($290 million after-tax), subject to closing
adjustments, recorded in Other revenue. The income before taxes in the above table for the Philippines reflects Citi’s ownership through August 1, 2022.
(3)
On November 1, 2022, Citi completed the sale of its Thailand consumer banking business, which was part of All Other—Legacy Franchises. The business had
approximately $2.7 billion in assets, including $2.4 billion of loans (net of allowance of $67 million) and excluding goodwill. The total amount of liabilities was
$1.0 billion, including $0.8 billion in deposits. The sale resulted in a pretax gain on sale of approximately $209 million ($115 million after-tax), subject to closing
adjustments, recorded in Other revenue. The income before taxes in the above table for Thailand reflects Citi’s ownership through November 1, 2022.
(4)
On March 1, 2023, Citi completed the sale of its India consumer banking business, which was part of All Other—Legacy Franchises. The business had
approximately $5.2 billion in assets, including $3.4 billion of loans (net of allowance of $32 million) and excluding goodwill. The total amount of liabilities was
$5.2 billion, including $5.1 billion in deposits. The sale resulted in a pretax gain on sale of approximately $1.0 billion ($718 million after-tax), subject to closing
adjustments, recorded in Other revenue. The income before taxes in the above table for India reflects Citi’s ownership through March 1, 2023.
(5)
On August 12, 2023, Citi completed the sale of its Taiwan consumer banking business, which was part of All Other—Legacy Franchises. The business had
approximately $11.6 billion in assets, including $7.2 billion of loans (net of allowance of $92 million) and excluding goodwill. The total amount of liabilities was
$9.2 billion, including $9.0 billion in deposits. The sale resulted in a pretax gain on sale of approximately $408 million ($288 million after-tax), subject to closing
adjustments, recorded in Other revenue. The income before taxes in the above table for Taiwan reflects Citi’s ownership through August 12, 2023.
(6)
Income before taxes for the period in which the individually significant component was classified as HFS for all prior periods presented. For Australia, excludes
the pretax loss on sale. For the Philippines, Thailand, India and Taiwan, excludes the pretax gain on sale.
Citi did not have any other significant disposals as of
December 31, 2024.
As of February 21, 2025, Citi had not entered into sale
agreements for the remaining All Other—Legacy Franchises
businesses to be sold, specifically the Poland consumer
banking business and the Mexico Consumer/SBMM
businesses.
For a description of the Company’s significant disposal
transactions in prior periods and financial impact, see Note 2
to the Consolidated Financial Statements in Citi’s 2023 Form
10-K.
167
Other Business Exits
Wind-Down of Korea Consumer Banking Business
On October 25, 2021, Citi disclosed its decision to wind down
and close its Korea consumer banking business, which is
reported in All Other—Legacy Franchises. In connection with
the announcement, Citibank Korea Inc. (CKI) commenced a
voluntary early termination program (Korea VERP). Due to
the voluntary nature of this termination program, no liabilities
for termination benefits are recorded until CKI makes formal
offers to employees that are then irrevocably accepted by
those employees, at which time related charges are recorded in
Compensation and benefits expenses.
The following table summarizes the reserve charges
related to the Korea VERP and other initiatives reported in All
Other:
In millions of dollars
Employee
termination costs
Total Citigroup (pretax)
Original charges in fourth quarter 2021
$
1,052
Utilization
(1)
Foreign exchange
3
Balance at December 31, 2021
$
1,054
Additional charges in first quarter 2022
$
31
Utilization
(347)
Foreign exchange
(24)
Balance at March 31, 2022
$
714
Additional charges (releases)
$
(3)
Utilization
(670)
Foreign exchange
(41)
Balance at June 30, 2022
$
—
Note: There were no additional charges after June 30, 2022.
The total cash charges for the wind-down were
$1.1 billion through 2022, most of which were recognized in
2021. Citi does not expect to record any additional charges in
connection with the Korea VERP.
See Note 8 for details on the pension impact of the Korea
wind-down.
Wind-Down of Russia Consumer and Institutional Banking
Businesses
On August 25, 2022, Citi announced its decision to wind
down its consumer banking and local commercial banking
operations in Russia, including actively pursuing sales of
certain Russian consumer banking portfolios.
On October 14, 2022, Citi disclosed that it would end
nearly all of the institutional banking services it offered in
Russia by the end of the first quarter of 2023. Since the first
quarter of 2023, Citi’s only operations in Russia were those
necessary to fulfill its remaining legal and regulatory
obligations.
Russia Portfolio Sales
•
During the second quarter of 2023, Citi recorded an
incremental gain of $5 million related to post-closing
contingency payments for a previously disclosed personal
installment loan sale in Other revenue. The previously
disclosed sale of a portfolio of ruble-denominated
personal installment loans resulted in a pretax net loss on
sale of approximately $7 million.
•
During the third and fourth quarters of 2023 and the first
and second quarters of 2024, as part of the previously
disclosed cards referral agreement with a Russian bank,
approximately $55 million of credit card receivables were
settled upon referral and refinanced.
Wind-Down Charges
The following tables provide details on Citi’s Russia wind-
down charges:
December 31, 2024
In millions of dollars
All Other
Services,
Markets and
Banking
Total
Severance(1)
$
8 $
1 $
9
Vendor termination and
other costs(2)
1
—
1
Total
$
9 $
1 $
10
Program-to-date
December 31, 2024
In millions of dollars
All Other
Services,
Markets and
Banking
Total
Severance(1)
$
43 $
9 $
52
Vendor termination and
other costs(2)
21
—
21
Total
$
64 $
9 $
73
Estimated additional charges
as of December 31, 2024
In millions of dollars
All Other
Services,
Markets and
Banking
Total
Severance(1)
$
15 $
— $
15
Vendor termination and
other costs(2)
15
—
15
Total
$
30 $
— $
30
(1)
Recorded in Compensation and benefits.
(2)
Recorded in Other operating expenses.
168
3. OPERATING SEGMENTS
The operating segments and reporting units reflect how the
CEO, who is the chief operating decision maker (CODM),
manages the Company, including allocating resources and
measuring performance.
Citi is organized into five reportable operating segments:
Services, Markets, Banking, Wealth and U.S. Personal
Banking (USPB), with the remaining operations recorded in
All Other, which includes activities not assigned to a specific
reportable operating segment, as well as discontinued
operations.
Operating segment results have been revised to reflect the
following changes:
•
Reallocated certain deposit balances from Markets to All
Other, to consolidate funding strategies across the
Company. This change had no material impact to
operating results of Markets or All Other.
•
Realigned businesses engaged in financing and
securitization activities within Banking and Markets,
transferred the retail banking business in the U.K., which
is being wound down, from Wealth to All Other and made
other immaterial reclassifications to align with Citi’s
transformation and strategy. These reclassifications did
not materially change segment or All Other results, and
prior periods were conformed to reflect these changes.
•
Reallocated certain customer balances between All Other
—Legacy Franchises, Services, Markets and Banking in
preparation for the IPO of the Mexico Consumer/SBMM
operations, and made other immaterial reclassifications.
These reallocations and reclassifications did not
materially change segment or All Other results, and prior
periods were conformed to reflect these changes.
Citi’s consolidated results remain unchanged for all
periods presented following the changes and reclassifications
discussed above.
All Other results are presented on a managed basis that
excludes divestiture-related impacts related to (i) Citi’s
divestitures of its Asia consumer banking businesses and (ii)
the planned IPO of Mexico Consumer/SBMM within All
Other—Legacy Franchises. The managed basis presents
investors with a view of operating earnings that provides
increased transparency and clarity into the operational results
of Citi’s performance; improves the visibility of management
decisions and their impacts on operational performance;
enables better comparison to peer companies; and allows Citi
to provide a long-term strategic view of the business going
forward.
The following is a description of each of Citi’s reportable
operating segments, and the products and services they
provide to their respective client bases.
Services
Services includes Treasury and Trade Solutions (TTS) and
Securities Services. TTS provides an integrated suite of
tailored cash management, trade and working capital solutions
to multinational corporations, financial institutions and public
sector organizations. Securities Services provides cross-border
support for clients, providing on-the-ground local market
expertise, post-trade technologies, customized data solutions
and a wide range of securities services solutions that can be
tailored to meet client needs.
Markets
Markets provides corporate, institutional and public sector
clients around the world with a full range of sales and trading
services across equities, foreign exchange, rates, spread
products and commodities. The range of services includes
market-making across asset classes, risk management
solutions, financing and prime brokerage.
Banking
Banking includes Investment Banking, which supports client
capital-raising needs to help strengthen and grow their
businesses, including equity and debt capital markets-related
strategic financing solutions, as well as advisory services
related to mergers and acquisitions, divestitures, restructurings
and corporate defense activities; and Corporate Lending,
which includes corporate and commercial banking, serving as
the conduit of Citi’s full product suite to clients.
Wealth
Wealth includes Private Bank, Wealth at Work and Citigold
and provides financial services to a range of client segments
including affluent, high net worth and ultra-high net worth
clients through banking, lending, mortgages, investment,
custody and trust product offerings in 20 countries, including
the U.S., Mexico and four wealth management centers:
Singapore, Hong Kong, the UAE and London. Private Bank
provides financial services to ultra-high net worth clients
through customized product offerings. Wealth at Work
provides financial services to professional industries
(including law firms, consulting groups, accounting and asset
management) through tailored solutions. Citigold includes
Citigold and Citigold Private Clients, both of which provide
financial services to affluent and high net worth clients
through elevated product offerings and financial relationships.
USPB
USPB includes Branded Cards and Retail Services, which
have proprietary card portfolios and co-branded card
portfolios within Branded Cards, and co-brand and private
label relationships within Retail Services. USPB also includes
Retail Banking, which provides traditional banking services to
retail and small business customers.
169
All Other
All Other primarily consists of activities not assigned to the
reportable operating segments, including certain unallocated
costs of global functions, other corporate expenses and net
treasury results, offsets to certain line-item reclassifications
and eliminations, and unallocated taxes; discontinued
operations within Corporate/Other; and Legacy Franchises,
which consists of Asia Consumer and Mexico Consumer/
SBMM businesses that Citi intends to exit, and its remaining
Legacy Holdings Assets. Corporate/Other within All Other
also includes all restructuring charges related to actions taken
as part of Citi’s organizational simplification initiatives. See
Note 9.
Revenues and expenses directly associated with each
respective business segment or component are included in
determining respective operating results. Other revenues and
expenses that are attributable to a particular business segment
or component are generally allocated from All Other based on
respective net revenues, non-interest expenses or other
relevant measures.
Revenues and expenses from transactions with other
operating segments or components are treated as transactions
with external parties for purposes of segment disclosures,
while funding charges paid by operating segments and funding
credits received by Corporate Treasury within All Other are
included in net interest income. The Company includes
intersegment eliminations within All Other to reconcile the
operating segment results to Citi’s consolidated results.
The accounting policies of these reportable operating
segments are the same as those disclosed in Note 1.
170
The following tables present certain information
regarding the Company’s continuing operations by reportable
operating segments and All Other on a managed basis that
excludes divestiture-related impacts. The CODM uses Income
(loss) from continuing operations as the performance measure,
to evaluate the results of each reportable operating segment by
comparing to and monitoring against budget and prior year
results. This information is used to allocate resources to each
of the segments and to make operational decisions when
managing the Company, such as whether to reinvest profits or
to return capital to shareholders through dividends and share
repurchases.
In millions of dollars, except identifiable assets,
average loans and average deposits in billions
Services
Markets
Banking
2024
2023
2022
2024
2023
2022
2024
2023
2022
Net interest income
$ 13,423 $ 13,251 $ 10,365 $
7,005 $
7,233 $
5,768 $
2,157 $
2,161 $
2,130
Non-interest revenue
6,226
4,851
5,300
12,831
11,416
14,177
4,044
2,554
3,397
Total revenues, net of interest expense(1)
$ 19,649 $ 18,102 $ 15,665 $ 19,836 $ 18,649 $ 19,945 $
6,201 $
4,715 $
5,527
Compensation expense(2)
$
2,371 $
2,318 $
2,070 $
3,611 $
3,645 $
3,548 $
2,703 $
3,021 $
2,961
Non-compensation expense(3)
8,228
7,713
6,664
9,591
9,613
8,905
1,774
1,856
1,499
Total operating expense
$ 10,599 $ 10,031 $
8,734 $ 13,202 $ 13,258 $ 12,453 $
4,477 $
4,877 $
4,460
Provisions for credit losses and for benefits and claims
$
276 $
950 $
207 $
463 $
438 $
117 $
(224) $
(143) $
604
Provision (benefits) for income taxes
2,190
2,420
1,776
1,166
1,015
1,523
419
12
129
Income (loss) from continuing operations
6,584
4,701
4,948
5,005
3,938
5,852
1,529
(31)
334
Identifiable assets at December 31(1)
$
584 $
586 $
600 $
949 $
1,008 $
963 $
143 $
148 $
152
Average loans
85
81
82
120
110
111
88
92
100
Average deposits
819
811
809
21
23
21
1
1
1
Wealth
USPB
2024
2023
2022
2024
2023
2022
Net interest income
$
4,508 $
4,413 $
4,681 $ 21,103 $ 20,150 $ 18,062
Non-interest revenue
3,004
2,608
2,674
(729)
(963)
(1,190)
Total revenues, net of interest expense(1)
$
7,512 $
7,021 $
7,355 $ 20,374 $ 19,187 $ 16,872
Compensation expense(2)
$
2,529 $
2,734 $
2,501 $
2,205 $
2,278 $
2,077
Non-compensation expense(3)
3,826
3,751
3,411
7,760
7,824
7,705
Total operating expense
$
6,355 $
6,485 $
5,912 $
9,965 $ 10,102 $
9,782
Provisions for credit losses and for benefits and claims
$
(126) $
(3) $
307 $
8,598 $
6,707 $
3,448
Provision (benefits) for income taxes
281
120
141
429
558
872
Income (loss) from continuing operations
1,002
419
995
1,382
1,820
2,770
Identifiable assets at December 31(1)
$
224 $
229 $
256 $
252 $
242 $
231
Average loans
149
150
150
209
193
171
Average deposits
316
310
312
91
110
115
All Other(4)
Reconciling Items(5)(6)(7)
Total Citi
2024
2023
2022
2024
2023
2022
2024
2023
2022
Net interest income
$
5,899 $
7,692 $
7,662 $
— $
— $
— $ 54,095 $ 54,900 $ 48,668
Non-interest revenue
1,642
1,750
1,458
26
1,346
854
27,044
23,562
26,670
Total revenues, net of interest expense(1)
$
7,541 $
9,442 $
9,120 $
26 $
1,346 $
854 $ 81,139 $ 78,462 $ 75,338
Total operating expense
$
9,068 $ 11,241 $
9,255 $
318 $
372 $
696 $ 53,984 $ 56,366 $ 51,292
Provisions for credit losses and for benefits and claims
$
1,115 $
1,304 $
480 $
7 $
(67) $
76 $ 10,109 $
9,186 $
5,239
Provision (benefits) for income taxes
(182)
(979)
(1,065)
(92)
382
266
4,211
3,528
3,642
Income (loss) from continuing operations
(2,460)
(2,124)
450
(207)
659
(184)
12,835
9,382
15,165
Identifiable assets at December 31(1)
$
201 $
199 $
215
$
2,353 $
2,412 $
2,417
Average loans
32
35
39
683
661
653
Average deposits
69
79
75
1,317
1,334
1,333
171
The following table presents a reconciliation of total Citigroup income from continuing operations as reported:
2024(5)
2023(6)
2022(7)
Total segments and All Other—Income from continuing
operations(4)
$ 13,042 $
8,723 $ 15,349
Divestiture-related impact on:
Total revenues, net of interest expense
26
1,346
854
Total operating expenses
318
372
696
Provision (release) for credit losses
7
(67)
76
Provision (benefits) for income taxes
(92)
382
266
Income from continuing operations
$ 12,835 $
9,382 $ 15,165
(1)
See “Performance by Geographic Area” below.
(2)
Excludes allocations of Compensation and benefits expense related to services provided by Corporate/Other within All Other, which are allocated from All Other
to each respective reportable segment, as applicable, through the non-compensation expense line.
(3)
Non-compensation expense for each reportable segment includes allocated compensation and benefits-related costs from Corporate/Other within All Other to the
respective reportable business segments, and expenses related to Technology/communication, Transactional and tax charges, Premises and equipment,
Professional services, Advertising and marketing and Other operating (all of which include certain overhead expenses).
(4)
Segment results are presented on a managed basis that excludes divestiture-related impacts related to (i) Citi’s divestitures of its Asia consumer banking
businesses and (ii) the planned IPO of Mexico Consumer/SBMM within All Other—Legacy Franchises. Adjustments are included in Legacy Franchises within All
Other and are reflected in the reconciliations above to arrive at Citi’s reported results in the Consolidated Statement of Income.
(5)
2024 includes $318 million (approximately $220 million after-tax) in operating expenses primarily related to separation costs in Mexico and severance costs in the
Asia exit markets.
(6)
2023 includes (i) an approximate $1.059 billion gain on sale recorded in revenue (approximately $727 million after-tax) related to the India consumer banking
business sale; (ii) an approximate $403 million gain on sale recorded in revenue (approximately $284 million after-tax) related to the Taiwan consumer banking
business sale; and (iii) approximately $372 million (approximately $263 million after-tax) in operating expenses primarily related to separation costs in Mexico
and severance costs in the Asia exit markets.
(7)
2022 includes (i) an approximate $535 million (approximately $489 million after-tax) goodwill write-down due to resegmentation and the timing of Asia
consumer banking business divestitures, (ii) an approximate $616 million gain on sale recorded in revenue (approximately $290 million after-tax) related to the
Philippines consumer banking business sale, (iii) an approximate $209 million gain on sale recorded in revenue (approximately $115 million after-tax) related to
the Thailand consumer banking business sale and (iv) approximately $161 million (approximately $108 million after-tax) in operating expenses primarily related
to separation costs in Mexico and severance costs in the Asia exit markets.
172
Performance by Geographic Area
Citi’s operations are highly integrated, and estimates and
subjective assumptions have been made to apportion revenue
between North America and international operations. These
estimates and assumptions are consistent with the allocations
used for the Company’s segment reporting.
The Company defines international activities for purposes
of this footnote presentation as business transactions that
involve clients that reside outside of North America, and the
information presented below is based on managed geography
(the booking location that manages the client relationship),
which is predominantly the domicile of the client. However,
many of the Company’s North America operations serve
international businesses. The managed geography can be
periodically reorganized (and thus the balances in North
America and Corporate/Other).
The following tables present revenues net of interest expense and identifiable assets between North America and international areas:
In millions of dollars
Revenues, net of interest expense
2024
2023
2022
North America(1)
$
40,079 $
36,707 $
34,917
International(2)(3)
40,392
39,640
38,911
Corporate/Other(4)
668
2,115
1,510
Total Citi
$
81,139 $
78,462 $
75,338
In millions of dollars at December 31,
Identifiable assets(5)
2024
2023
North America(1)
$
1,326,443 $
1,350,212
International
899,972
940,416
Corporate/Other
126,530
121,206
Total Citi
$
2,352,945 $
2,411,834
(1)
Primarily reflects the U.S.
(2)
International represents the summation of international revenues in Services, Markets, Banking, Wealth and All Other—Legacy Franchises, primarily Asia
Consumer and Mexico Consumer/SBMM.
(3)
Total revenues for the U.K. were approximately $6.7 billion, $6.9 billion and $7.9 billion for 2024, 2023 and 2022, respectively.
(4)
Corporate/Other revenues, net of interest expense largely reflects U.S. activities, as well as intersegment eliminations.
(5)
The Company’s long-lived assets (Premises and equipment) for the periods presented are not considered significant in relation to its total assets.
173
4. INTEREST INCOME AND EXPENSE
Interest income and Interest expense consisted of the following:
In millions of dollars
2024
2023
2022
Interest income
Consumer loans
$
39,542 $
36,864 $
28,391
Corporate loans
22,562
21,004
12,851
Loan interest, including fees
$
62,104 $
57,868 $
41,242
Deposits with banks
11,417
11,238
4,515
Securities borrowed and purchased under agreements to resell
29,173
26,887
7,154
Investments, including dividends
18,662
18,300
11,214
Trading account assets(1)
17,576
14,458
7,418
Other interest-bearing assets(2)
4,781
4,507
2,865
Total interest income
$
143,713 $
133,258 $
74,408
Interest expense
Deposits
$
40,326 $
36,300 $
11,559
Securities loaned and sold under agreements to repurchase
27,884
21,439
4,455
Trading account liabilities(1)
3,350
3,427
1,437
Short-term borrowings and other interest-bearing liabilities(3)
7,703
7,438
2,488
Long-term debt
10,355
9,754
5,801
Total interest expense
$
89,618 $
78,358 $
25,740
Net interest income
$
54,095 $
54,900 $
48,668
Provision for credit losses on loans
9,726
7,786
4,745
Net interest income after provision for credit losses on loans
$
44,369 $
47,114 $
43,923
(1)
Interest expense on Trading account liabilities of Services, Markets and Banking is reported as a reduction of Interest income. Interest income and Interest
expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively.
(2)
Includes assets from businesses held-for-sale (see Note 2) and Brokerage receivables.
(3)
Includes liabilities from businesses held-for-sale (see Note 2) and Brokerage payables.
174
5. COMMISSIONS AND FEES; ADMINISTRATION
AND OTHER FIDUCIARY FEES
Commissions and Fees
The primary components of Commissions and fees revenue are
investment banking fees, brokerage commissions, credit card
and bank card income, deposit-related fees and transactional
service fees.
Investment banking fees are substantially composed of
underwriting and advisory revenues. Such fees are recognized
at the point in time when Citigroup’s performance under the
terms of a contractual arrangement is completed, which is
typically at the closing of a transaction. Reimbursed expenses
related to these transactions are recorded as revenue and are
included within investment banking fees. In certain instances
for advisory contracts, Citi will receive amounts in advance of
the deal’s closing. In these instances, the amounts received
will be recognized as a liability and not recognized in revenue
until the transaction closes. Investment banking fees are
earned primarily by Banking and Markets. See Note 3 for
segment results.
Out-of-pocket expenses associated with underwriting
activity are deferred and recognized at the time the related
revenue is recognized, while out-of-pocket expenses
associated with advisory arrangements are expensed as
incurred. In general, expenses incurred related to investment
banking transactions, whether consummated or not, are
recorded in Other operating expenses. The Company has
determined that it acts as principal in the majority of these
transactions and therefore presents expenses gross within
Other operating expenses.
Brokerage commissions primarily include commissions
and fees from the following: executing transactions for clients
on exchanges and over-the-counter markets; sales of mutual
funds and other annuity products; and assisting clients in
clearing transactions, providing brokerage services and other
such activities. Brokerage commissions are recognized in
Commissions and fees at the point in time the associated
service is fulfilled, generally on the trade execution date.
Certain costs paid to third-party clearing houses and
exchanges are recorded net against commission revenue, as
the Company is an agent for those services. Sales of certain
investment products include a portion of variable
consideration associated with the underlying product. In these
instances, a portion of the revenue associated with the sale of
the product is not recognized until the variable consideration
becomes fixed and determinable. Brokerage commissions are
earned primarily by Markets and USPB. See Note 3 for
segment results.
Credit card and bank card income is primarily composed
of interchange fees, which are earned by card issuers based on
card spend volumes, and certain card fees, including annual
fees. Costs related to customer reward programs and certain
payments to partners (primarily based on program sales,
profitability and customer acquisitions) are recorded as a
reduction of credit card and bank card income. Citi’s credit
card programs have certain partner sharing agreements that
vary by partner. These partner sharing agreements are subject
to contractually based performance thresholds that, if met,
would require Citi to make ongoing payments to the partner.
The threshold is based on the profitability of a program and is
generally calculated based on predefined program revenues
less predefined program expenses. In most of Citi’s partner
sharing agreements, program expenses include net credit
losses, which, to the extent that the increase in net credit losses
reduces Citi’s liability for the partners’ share for a given
program year, would generally result in lower payments to
partners in total for that year and vice versa. Further, in some
instances, other partner payments are based on program sales
and new account acquisitions. Interchange revenues are
recognized as earned on a daily basis when Citi’s performance
obligation to transmit funds to the payment networks has been
satisfied. Annual card fees, net of origination costs, are
deferred and amortized on a straight-line basis over a 12-
month period. Costs related to card reward programs are
recognized when the rewards are earned by the cardholders.
Payments to partners are recognized when incurred. Credit
card and bank card income is earned primarily by Wealth and
Services. See Note 3 for segment results.
Deposit-related fees consist of service charges on deposit
accounts and fees earned from performing cash management
activities and other deposit account services. Such fees are
recognized in the period in which the related service is
provided. Deposit-related fees are earned primarily by
Services and USPB. See Note 3 for segment results.
Transactional service fees primarily consist of fees
charged for processing services such as cash management,
global payments, clearing, international funds transfer and
other trade services. Such fees are recognized as/when the
associated service is satisfied, which normally occurs at the
point in time the service is requested by the customer and
provided by Citi. Transactional service fees are earned
primarily by Services. See Note 3 for segment results.
Insurance distribution revenue consists of commissions
earned from third-party insurance companies for marketing
and selling insurance policies on behalf of such entities. Such
commissions are recognized in Commissions and fees at the
point in time the associated service is fulfilled, generally when
the insurance policy is sold to the policyholder. Sales of
certain insurance products include a portion of variable
consideration associated with the underlying product. In these
instances, a portion of the revenue associated with the sale of
the policy is not recognized until the variable consideration
becomes fixed and determinable. The Company recognized
$165 million, $188 million and $201 million of revenue
related to such variable consideration for the years ended
December 31, 2024, 2023 and 2022, respectively. These
amounts primarily relate to performance obligations satisfied
in prior periods. Insurance distribution revenue is earned
primarily by USPB and All Other. See Note 3 for segment
results.
Insurance premiums consist of premium income from
insurance policies that Citi has underwritten and sold to
policyholders. Insurance premiums are earned primarily by
Legacy Franchises within All Other. See Note 3 for segment
results.
175
The following table presents Commissions and fees revenue:
In millions of dollars
2024
2023
2022
Investment banking(1)
$
3,576 $
2,676 $
3,084
Brokerage commissions(2)
2,498
2,316
2,546
Credit and bank card income
Interchange fees
12,211
11,996
11,505
Card-related loan fees
604
475
589
Card rewards and partner payments(3)
(12,592)
(12,513)
(12,336)
Deposit-related fees
1,333
1,254
1,274
Transactional service fees
1,390
1,323
1,169
Corporate finance(4)
685
439
458
Insurance distribution revenue
313
321
346
Insurance premiums
96
97
91
Loan servicing
76
100
103
Other
463
421
346
Total(5)
$
10,653 $
8,905 $
9,175
(1)
For the periods presented, the contract liability amount was negligible.
(2)
The Company recognized $442 million, $448 million and $538 million of revenue related to variable consideration for the years ended December 31, 2024, 2023
and 2022, respectively. These amounts primarily relate to performance obligations satisfied in prior periods.
(3)
As described above, Citi’s credit card programs have certain partner sharing agreements that vary by partner.
(4)
Consists primarily of fees earned from structuring and underwriting loan syndications or related financing activity. This activity is accounted for under ASC 310.
(5)
Commissions and fees include $(11,076) million, $(11,367) million and $(11,008) million not accounted for under ASC 606, Revenue from Contracts with
Customers, for the years ended December 31, 2024, 2023 and 2022, respectively. Amounts reported in Commissions and fees accounted for under other guidance
primarily include card-related loan fees, card reward programs and certain partner payments, corporate finance fees, insurance premiums and loan servicing fees.
176
Administration and Other Fiduciary Fees
Administration and other fiduciary fees revenue is primarily
composed of custody fees and fiduciary fees.
The custody product is composed of numerous services
related to the administration, safekeeping and reporting for
both U.S. and non-U.S. denominated securities. The services
offered to clients include trade settlement, safekeeping,
income collection, corporate action notification, record-
keeping and reporting, tax reporting and cash management.
These services are provided for a wide range of securities,
including but not limited to equities, municipal and corporate
bonds, mortgage- and asset-backed securities, money market
instruments, U.S. Treasuries and agencies, derivative
instruments, mutual funds, alternative investments and
precious metals. Custody fees are recognized as or when the
associated service is satisfied, which normally occurs at the
point in time the service is requested by the customer and
provided by Citi. Custody fees are earned primarily by
Services. See Note 3 for segment results.
Fiduciary fees consist of trust services and investment
management services. As an escrow agent, Citi receives,
safekeeps, services and manages clients’ escrowed assets, such
as cash, securities, property (including intellectual property),
contracts or other collateral. Citi performs its escrow agent
duties by safekeeping the assets during the specified time
period agreed upon by all parties and therefore earns its
revenue evenly during the contract duration. Investment
management services consist of managing assets on behalf of
Citi’s retail and institutional clients. Revenue from these
services primarily consists of asset-based fees for advisory
accounts, which are based on the market value of the client’s
assets and recognized monthly, when the market value is
fixed. In some instances, the Company contracts with third-
party advisors and with third-party custodians. The Company
has determined that it acts as principal in the majority of these
transactions and therefore presents the amounts paid to third
parties gross within Transactional and tax charges. Fiduciary
fees are earned primarily by USPB and Legacy Franchises
within All Other. See Note 3 for segment results.
The following table presents Administration and other fiduciary fees revenue:
In millions of dollars
2024
2023
2022
Custody fees
$
2,026 $
1,871 $
1,877
Fiduciary fees
1,583
1,376
1,350
Guarantee fees
525
534
557
Total administration and other fiduciary fees(1)
$
4,134 $
3,781 $
3,784
(1)
Administration and other fiduciary fees include $525 million, $534 million and $557 million for the years ended December 31, 2024, 2023 and 2022, respectively,
that are not accounted for under ASC 606, Revenue from Contracts with Customers. These generally include guarantee fees.
177
6. PRINCIPAL TRANSACTIONS
Principal transactions revenue consists of realized and
unrealized gains and losses from trading activities. Trading
activities include revenues from fixed income, equities, credit
and commodities products and foreign exchange transactions
that are managed on a portfolio basis and characterized below
based on the primary risk managed by each trading desk (as
such, the trading desks can be periodically reorganized and
thus the risk categories). Not included in the table below is the
impact of net interest income related to trading activities,
which is an integral part of the profitability of trading
activities (see Note 4 for information about net interest income
related to trading activities). Principal transactions include
CVA (credit valuation adjustments) and FVA (funding
valuation adjustments) on over-the-counter derivatives, and
gains (losses) on certain economic hedges on loans in
Services, Markets and Banking. These adjustments are
discussed further in Note 26.
In certain transactions, Citi incurs fees and presents these
fees paid to third parties in operating expenses.
The following table presents Principal transactions
revenue:
In millions of dollars
2024
2023
2022
Interest rate risks(1)
$
1,966 $
2,407 $
3,389
Foreign exchange risks(2)
5,615
5,978
7,148
Equity risks(3)(4)
2,448
1,266
1,848
Commodity and other risks(5)
1,374
1,741
1,801
Credit products and risks(6)
250
(444)
(27)
Total
$
11,653 $
10,948 $
14,159
(1)
Includes revenues from government securities, municipal securities, mortgage securities and other debt instruments. Also includes spot and forward trading of
currencies and exchange-traded and over-the-counter (OTC) currency options, options on fixed income securities, interest rate swaps, currency swaps, swap
options, caps and floors, financial futures, OTC options and forward contracts on fixed income securities.
(2)
Includes revenues from foreign exchange spot, forward, option and swap contracts, as well as foreign currency translation (FX translation) gains and losses.
(3)
Includes revenues from common, preferred and convertible preferred stock, convertible corporate debt, equity-linked notes and exchange-traded and OTC equity
options and warrants.
(4)
2024 includes an approximate $400 million episodic gain related to the Visa B exchange completed in the second quarter of 2024.
(5)
Primarily includes revenues from crude oil, refined oil products, natural gas, metals and other commodities trades.
(6)
Includes revenues from corporate debt, secondary trading loans, mortgage securities, single name and index credit default swaps, and structured credit products.
178
7. INCENTIVE PLANS
Discretionary Annual Incentive Awards
Citigroup grants immediate cash bonus payments and various
forms of immediate and deferred awards as part of its
discretionary annual incentive award program involving a
large segment of Citigroup’s employees worldwide.
Discretionary annual incentive awards are generally
awarded in the first quarter of the year based on the previous
year’s performance. Awards valued at less than U.S. $75,000
(or the local currency equivalent) are generally paid entirely in
the form of an immediate cash bonus. Pursuant to Citigroup
policy and/or regulatory requirements, certain employees are
subject to mandatory deferrals of incentive pay and generally
receive 15%–60% of their awards in the form of deferred
stock or deferred cash stock units. Discretionary annual
incentive awards to certain employees in the EU are subject to
deferral requirements regardless of the total award value, with
at least 50% of the immediate incentive delivered in the form
of a stock payment award subject to a restriction on sale or
transfer (generally, for 12 months).
For deferred incentive awards granted in 2022 and after,
Citigroup changed the annual deferred compensation structure
from granting deferred cash awards for certain regulated
employees to deferred stock awards. Certain employees
located in countries that have regulations or tax advantages for
offering deferred cash or deferred cash stock units received
those types of awards as a part of their annual incentive
compensation rather than deferred stock.
Subject to certain exceptions (principally, for retirement-
eligible employees), continuous employment within Citigroup
is required to vest in deferred annual incentive awards. Post
employment vesting by retirement-eligible employees and
participants who meet other conditions is generally
conditioned upon their compliance with certain restrictions
during the remaining vesting period.
Generally, the deferred awards vest in equal annual
installments over four years. Vested stock awards are
delivered in shares of common stock. Deferred cash awards
are payable in cash and, except as prohibited by applicable
regulatory guidance, earn a fixed notional rate of interest that
is paid only if and when the underlying principal award
amount vests. Deferred cash stock unit awards are payable in
cash at the vesting value of the underlying stock. The value of
each deferred stock unit is equal to one share of Citigroup
stock, and the award will fluctuate with changes in the stock
price. Recipients of deferred stock awards and deferred cash
stock unit awards, however, may, except as prohibited by
applicable regulatory guidance, be entitled to receive or accrue
dividend-equivalent payments during the vesting period.
Generally, in the EU, vested shares are subject to a restriction
on sale or transfer after vesting, and vested deferred cash
awards and deferred cash stock units are subject to hold back
(generally, for 6 or 12 months based on the award type).
Stock awards, deferred cash stock units and deferred cash
awards are subject to one or more cancellation and clawback
provisions that apply in certain circumstances, including gross
misconduct and in the circumstances required by SEC rule
10D-1.
Outstanding (Unvested) Stock Awards
A summary of the status of unvested stock awards granted as
discretionary annual incentive or sign-on and replacement
stock awards is presented below:
Unvested stock awards
Shares
Weighted-
average grant
date fair
value per share
Unvested at December 31, 2023
59,857,333 $
56.09
Granted(1)
32,164,458
53.00
Canceled
(2,693,522)
55.04
Vested(2)
(21,641,734)
58.59
Unvested at December 31, 2024
67,686,535 $
53.87
(1)
The weighted-average fair value of the shares granted during 2023 and
2022 was $49.36 and $65.07, respectively.
(2)
The total fair value of stock awards that vested during the years ending
2024, 2023 and 2022 was $1.1 billion, $835 million and $863 million,
respectively.
Total unrecognized compensation cost related to unvested
stock awards was $1.1 billion at December 31, 2024. The cost
is expected to be recognized over a weighted-average period
of 1.7 years.
Performance Share Units
Certain senior executives were awarded performance share
units (PSUs) every February from 2021 to 2024, for
performance in the year prior to the award date. Each award
referenced two forward-looking three-year performance
metrics. In each year an award was granted, the metrics were
equally weighted. For PSUs awarded in 2021, 2022 and 2023,
the metrics were average return on tangible common equity
and cumulative tangible book value per share. For PSUs
awarded in 2024, the metrics were weighted-average return on
tangible common equity and cumulative tangible book value
per share. The award is settled solely in cash after the end of
each performance period.
For all award years, if the total shareholder return is
negative over the three-year performance period, executives
may earn no more than 100% of the target PSUs, regardless of
the extent to which Citigroup outperforms against
performance goals and/or peer firms. The number of PSUs
ultimately earned could vary from zero, if performance goals
are not met, to as much as 150% of target, if performance
goals are meaningfully exceeded. The reported financial
metrics during the performance period are adjusted to reflect
any mandatory equitable adjustments as required under the
applicable award agreements for unusual and non-recurring
items as presented to and approved by the Compensation,
Performance Management and Culture (CPC) Committee.
For all award years, the value of each PSU is equal to the
value of one share of Citi common stock. Dividend
equivalents are forfeitable, accrued and paid on the number of
earned PSUs after the end of the performance period.
179
PSUs are subject to variable accounting, pursuant to
which the associated value of the award will fluctuate with
changes in Citigroup’s stock price and the attainment of the
specified performance goals for each award. The value of the
award, subject to the performance goals and taking into
account any mandatory equitable adjustments as per the terms
of the award agreement, is estimated using a simulation model
that incorporates multiple valuation assumptions, including the
probability of achieving the specified performance goals of
each award. The risk-free rate used in the model is based on
the applicable U.S. Treasury yield curve. Other significant
assumptions for the awards are as follows:
Valuation assumptions—
weighted average
2024
2023
2022
Expected volatility
26.82 %
35.97 %
37.01 %
Expected dividend yield
3.84
4.13
2.96
A summary of the performance share unit activity for
2024 is presented below:
Performance share units
Units
Outstanding, beginning of year
2,043,156
Granted
1,234,835
Canceled
—
Payments(1)
(418,098)
Outstanding, end of year
2,859,893
(1)
$24.6 million in payments were processed for this program in 2024.
Transformation Program
In order to provide an incentive for select employees to
effectively execute Citi’s transformation program, in August
2021 the Personnel and Compensation (P&C) Committee of
Citigroup’s Board of Directors, the predecessor of the
Compensation, Performance Management and Culture (CPC)
Committee of Citigroup’s Board of Directors, approved a
program for the select employees to earn additional
compensation based on the achievement of Citi’s
transformation goals from August 2021 through December
2024 and satisfaction of other conditions. Performance under
the program is divided into three consecutive periods, ending
on December 31, 2022, 2023 and 2024. The awards are
subject to variable accounting, pursuant to which the
associated value of the award will fluctuate with the
attainment of the performance conditions for each tranche and
changes to Citigroup’s stock price for the third tranche.
Payment for each period will be in cash, in a lump sum, with
the third payment indexed to changes in the value of Citi’s
common stock from the service inception date through the
payment date. Earnings generally will be based on collective
performance with respect to Citi’s transformation goals and
will be evaluated and approved by the CPC Committee on an
annual basis.
Payments in the event of any category of employment
termination or change in job title or employment status are
subject to Citi’s discretion. Cancellation and clawback are
provided for in the event of misconduct and certain other
circumstances. The program applies to senior leaders, other
than the CEO, critical to helping deliver a successful
transformation with the value of the awards varying based on
individual compensation levels.
Other Variable Incentive Compensation
Citigroup has various incentive plans globally that are used to
motivate and reward performance primarily in the areas of
sales, operational excellence and customer satisfaction.
Participation in these plans is generally limited to employees
who are not eligible for discretionary annual incentive awards.
Other forms of variable compensation include commissions
paid to financial advisors and mortgage loan officers.
Additional Information
Except for awards subject to variable accounting, the total
expense recognized for stock awards represents the grant date
fair value of such awards, which is generally recognized as a
charge to income ratably over the vesting period, other than
for awards to retirement-eligible employees and immediately
vested awards. Whenever awards are granted or are expected
to be granted to employees who are, or are expected to be
while the awards are outstanding, retirement eligible, the
charge to income is accelerated based on when the applicable
conditions for retirement eligibility were or will be met. If the
employee is retirement eligible on the grant date, or the award
is vested at the grant date, Citi recognizes the expense each
year equal to the grant date fair value of the awards that it
estimates will be granted in the following year.
Recipients of Citigroup stock awards generally do not
have any stockholder rights until shares are delivered upon
vesting. Recipients of stock-settled awards and other vested
stock awards subject to a sale-restriction period are generally
entitled to vote the shares in their award and receive dividends
on such shares during the sale-restriction period. Once a stock
award vests, the shares delivered to the participant are freely
transferable, unless they are subject to a restriction on sale or
transfer for a specified period.
All equity awards granted since April 19, 2005 have been
made pursuant to stockholder-approved stock incentive plans
that are administered by the CPC Committee (or its
predecessor), which is composed entirely of independent non-
employee directors.
On December 31, 2024, approximately 42.3 million
shares of Citigroup common stock were authorized and
available for grant under Citigroup’s 2019 Stock Incentive
Plan, the only plan from which equity awards are currently
granted.
The 2019 Stock Incentive Plan and predecessor plans
permit the use of treasury stock or newly issued shares in
connection with awards granted under the plans. Except where
local laws favor newly issued shares, treasury shares were
used to settle stock vestings. The use of treasury stock or
newly issued shares to settle stock awards does not affect the
compensation expense recorded in the Consolidated Statement
of Income for equity awards.
180
Incentive Compensation Cost
The following table presents components of compensation
expense, relating to the incentive compensation programs
described above:
In millions of dollars
2024
2023
2022
Charges for estimated awards to
retirement-eligible employees
$
741 $
663 $
742
Amortization of deferred cash awards,
deferred cash stock units and
performance stock units
186
340
463
Immediately vested stock award
expense(1)
130
127
101
Amortization of restricted and
deferred stock awards(2)
718
689
533
Other variable incentive
compensation
355
286
304
Total
$ 2,130 $ 2,105 $ 2,091
(1)
Represents expense for immediately vested stock awards that generally
were stock payments in lieu of cash compensation. The expense is
generally accrued as cash incentive compensation in the year prior to
grant.
(2)
All periods include amortization expense for all unvested awards to non-
retirement-eligible employees.
Citigroup did not capitalize any stock-based
compensation costs in 2024, 2023 or 2022. The related income
tax benefits for stock-based compensation costs were
$428 million, $392 million and $350 million for 2024, 2023
and 2022, respectively.
181
8. RETIREMENT BENEFITS
Pension and Postretirement Benefit Plans
The Company has several non-contributory defined benefit
pension plans covering certain U.S. employees and has various
defined benefit pension and termination indemnity plans
covering employees outside the U.S.
The U.S. qualified defined benefit pension plan was
frozen effective January 1, 2008 for most employees.
Accordingly, no additional compensation-based contributions
have been credited to the cash balance portion of the plan for
existing plan participants after 2007. However, certain
employees covered under the prior final pay plan formula
continue to accrue benefits. The Company also offers
postretirement health care and life insurance benefits to certain
eligible U.S. retired employees, as well as to certain eligible
employees outside the U.S.
The Company also sponsors a number of non-
contributory, nonqualified pension plans. These plans, which
are unfunded, provide supplemental defined pension benefits
to certain U.S. employees. With the exception of certain
employees covered under the prior final pay plan formula, the
benefits under these plans were frozen in prior years.
The plan obligations, plan assets and periodic plan
expense for the Company’s most significant pension and
postretirement benefit plans (Significant Plans) are measured
and disclosed quarterly, instead of annually. The Significant
Plans captured approximately 90% of the Company’s global
pension and postretirement benefit plan obligations as of
December 31, 2024. All other plans (All Other Plans) are
measured annually with a December 31 measurement date.
Net Expense (Benefit)
The following table summarizes the components of net
expense (benefit) recognized in the Consolidated Statement of
Income for the Company’s pension and postretirement benefit
plans for Significant Plans and All Other Plans. Service cost is
reported in Compensation and benefits expenses and all other
components of the net annual benefit cost are reported in
Other operating expenses in the Consolidated Statement of
Income:
Pension plans
Postretirement benefit plans
U.S. plans
Non-U.S. plans
U.S. plans
Non-U.S. plans
In millions of dollars
2024
2023
2022
2024
2023
2022
2024
2023
2022
2024
2023
2022
Service cost
$
— $
— $
— $ 115 $ 115 $ 116 $
— $
— $
— $
1 $
1 $
2
Interest cost on benefit obligation
466
505
442
421
409
329
16
18
16
107
106
90
Expected return on assets
(602)
(640)
(612)
(326)
(327)
(263)
(11)
(13)
(11)
(80)
(77)
(69)
Amortization of amounts in AOCI:
Prior service cost (benefit)
2
2
2
(3)
(5)
(7)
(9)
(9)
(9)
(7)
(9)
(8)
Net actuarial loss (gain)
179
151
162
76
72
58
(10)
(12)
(9)
10
(18)
6
Curtailment (gain)(1)
—
—
—
(3)
(16)
(22)
—
—
—
—
—
—
Settlement loss (gain)(1)
—
—
—
5
9
(15)
—
—
—
—
—
—
Total net expense (benefit)
$
45 $
18 $
(6) $ 285 $ 257 $ 196 $
(14) $
(16) $
(13) $
31 $
3 $
21
(1)
Curtailment and settlement relate to divestiture activities. Total 2024 net expense for non-U.S. plans includes $7 million of settlement losses related to the
termination of Citibank Canada Pension Plan. Total 2023 net expense for non-U.S. plans includes curtailment gains and settlement loss related to divestiture of
Citi’s consumer businesses in India, Indonesia and Taiwan. Total 2022 net expense for non-U.S. plans includes a $36 million net benefit related to the wind-down
of Citi’s consumer banking business in Korea.
Contributions
The Company’s funding practice for U.S. and non-U.S.
pension and postretirement benefit plans is generally to fund
to minimum funding requirements in accordance with
applicable local laws and regulations. The Company may
increase its contributions above the minimum required
contribution, if appropriate. In addition, management has the
ability to change its funding practices. For the U.S. pension
plans, there were no required minimum cash contributions for
2024 or 2023.
The following table summarizes the Company’s actual
contributions for the years ended December 31, 2024 and
2023, as well as expected Company contributions for 2025.
Expected contributions are subject to change, since
contribution decisions are affected by various factors, such as
market performance, tax considerations and regulatory
requirements.
Pension plans(1)
Postretirement benefit plans(1)
U.S. plans(2)
Non-U.S. plans(3)
U.S. plans
Non-U.S. plans
In millions of dollars
2025
2024
2023
2025
2024
2023
2025
2024
2023
2025
2024
2023
Contributions made by the Company
$ — $ — $ — $ 47 $ 713 $ 87 $ — $ — $ — $
3 $
4 $
4
Benefits paid directly by the Company
57
59
58
42
50
31
5
8
8
7
5
5
(1)
Amounts reported for 2025 are expected amounts.
(2) The U.S. plans include benefits paid directly by the Company for the nonqualified pension plans.
(3)
The Company made a discretionary contribution of approximately $600 million to a pension plan in Mexico during the fourth quarter of 2024.
182
Funded Status and Accumulated Other Comprehensive Income (AOCI)
The following table summarizes the funded status and amounts recognized on the Consolidated Balance Sheet for the Company’s
pension and postretirement benefit plans:
Pension plans
Postretirement benefit plans
U.S. plans
Non-U.S. plans
U.S. plans
Non-U.S. plans
In millions of dollars
2024
2023
2024
2023
2024
2023
2024
2023
Change in benefit obligation
Benefit obligation at beginning of year
$
9,640 $
9,741 $
7,030 $
6,375 $
343 $
375 $
1,208 $
1,013
Service cost
—
—
115
115
—
—
1
1
Interest cost on benefit obligation
466
505
421
409
16
18
107
106
Plan amendments
—
—
(1)
(2)
—
—
—
—
Actuarial (gain) loss
(262)
282
(335)
273
(21)
(1)
(1)
27
Benefits paid, net of participants’ contributions
(888)
(888)
(394)
(368)
(46)
(49)
(96)
(77)
Divestitures
—
—
(1)
(77)
—
—
—
—
Settlement(1)(2)
—
—
(47)
(104)
—
—
—
—
Curtailment(2)
—
—
(4)
(33)
—
—
—
—
Foreign exchange impact and other
—
—
(732)
442
—
—
(205)
138
Benefit obligation at year end
$
8,956 $
9,640 $
6,052 $
7,030 $
292 $
343 $
1,014 $
1,208
Change in plan assets
Plan assets at fair value at beginning of year
$ 10,210 $ 10,145 $
6,426 $
6,086 $
231 $
253 $
970 $
855
Actual return on plan assets
266
895
131
352
9
19
50
56
Company contributions, net of reimbursements
59
58
763
118
8
8
9
9
Benefits paid, net of participants’ contributions
(888)
(888)
(394)
(368)
(46)
(49)
(96)
(77)
Divestitures
—
—
(1)
(19)
—
—
—
—
Settlement(1)(2)
—
—
(47)
(104)
—
—
—
—
Foreign exchange impact and other
—
—
(620)
361
—
—
(178)
127
Plan assets at fair value at year end
$
9,647 $ 10,210 $
6,258 $
6,426 $
202 $
231 $
755 $
970
Funded status of the plans
Qualified plans(3)
$
1,181 $
1,107 $
206 $
(604) $
(90) $
(112) $
(259) $
(238)
Nonqualified plans(4)
(490)
(537)
—
—
—
—
—
—
Funded status of the plans at year end
$
691 $
570 $
206 $
(604) $
(90) $
(112) $
(259) $
(238)
Net amount recognized at year end
Qualified plans
Benefit asset
$
1,181 $
1,107 $
895 $
832 $
— $
— $
— $
—
Benefit liability
—
—
(689)
(1,436)
(90)
(112)
(259)
(238)
Qualified plans
$
1,181 $
1,107 $
206 $
(604) $
(90) $
(112) $
(259) $
(238)
Nonqualified plans
(490)
(537)
—
—
—
—
—
—
Net amount recognized on the balance sheet
$
691 $
570 $
206 $
(604) $
(90) $
(112) $
(259) $
(238)
Amounts recognized in AOCI at year end(1)
Prior service (cost) benefit
$
(3) $
(5) $
(1) $
5 $
63 $
73 $
21 $
33
Net actuarial (loss) gain
(6,215)
(6,320)
(1,513)
(1,990)
125
114
(263)
(311)
Net amount recognized in AOCI
$ (6,218) $ (6,325) $ (1,514) $ (1,985) $
188 $
187 $
(242) $
(278)
Accumulated benefit obligation at year end
$
8,956 $
9,640 $
5,716 $
6,686 $
292 $
343 $
1,014 $
1,208
(1)
The framework for the Company’s pension oversight process includes monitoring of potential settlement charges for all plans. Settlement accounting is triggered
when either the sum of all settlements (including lump sum payments) for the year is greater than service plus interest costs or if more than 10% of the plan’s
projected benefit obligation will be settled. Because some of Citi’s Significant Plans are frozen and have no material service cost, settlement accounting may apply
in the future.
(2)
Curtailment and settlement relate to divestiture and other wind-down activities.
(3)
The U.S. qualified plan was fully funded as of January 1, 2024 and no minimum funding was required for 2024. The plan is also expected to be fully funded as of
January 1, 2025 with no expected minimum funding requirement for 2025.
(4)
The nonqualified plans of the Company are unfunded.
183
The following table presents the change in AOCI related to the Company’s pension, postretirement and post employment plans:
In millions of dollars
2024
2023
2022
Beginning of year balance, net of tax(1)(2)
$
(6,050) $
(5,755) $
(5,852)
Actuarial assumptions changes and plan experience
625
(547)
3,923
Net (loss) gain due to difference between actual and expected returns
(562)
263
(4,225)
Net amortization
239
175
198
Prior service benefit
1
2
—
Curtailment/settlement gain (loss)(3)
2
(7)
(37)
Foreign exchange impact and other
271
(239)
172
Change in deferred taxes, net
(153)
58
66
Change, net of tax
$
423 $
(295) $
97
End of year balance, net of tax(1)(2)
$
(5,627) $
(6,050) $
(5,755)
(1)
See Note 21 for further discussion of net AOCI balance.
(2)
Includes net of tax amounts for certain profit-sharing plans outside the U.S.
(3)
Curtailment and settlement relate to divestiture activities, including $36 million related to the Korea wind-down in 2022.
At December 31, 2024 and 2023, the aggregate projected benefit obligation (PBO), the aggregate accumulated benefit obligation
(ABO) and the aggregate fair value of plan assets are presented for all defined benefit pension plans with a PBO in excess of plan
assets and for all defined benefit pension plans with an ABO in excess of plan assets as follows:
PBO exceeds fair value of plan assets
ABO exceeds fair value of plan assets
U.S. plans(1)
Non-U.S. plans
U.S. plans(1)
Non-U.S. plans
In millions of dollars
2024
2023
2024
2023
2024
2023
2024
2023
Projected benefit obligation
$
490 $
537 $
2,968 $
3,747 $
490 $
537 $
2,745 $
3,510
Accumulated benefit obligation
490
537
2,679
3,453
490
537
2,523
3,258
Fair value of plan assets
—
—
2,279
2,311
—
—
2,095
2,100
(1)
As of December 31, 2024 and 2023, only the nonqualified plans’ PBO and ABO exceeded plan assets.
Plan Assumptions
The Company utilizes a number of assumptions to determine
plan obligations and expenses. Changes in one or a
combination of these assumptions will have an impact on the
Company’s pension and postretirement PBO, funded status
and expense (benefit). Changes in the plans’ funded status
resulting from changes in the PBO and fair value of plan
assets will have a corresponding impact on AOCI.
The actuarial assumptions at the respective years ended
December 31 in the table below are used to measure the year-
end PBO and the net periodic expense (benefit) for the
subsequent year (period). Since Citi’s Significant Plans are
measured on a quarterly basis, the year-end rates for those
plans are used to calculate the net periodic expense (benefit)
for the subsequent year’s first quarter.
As a result of the quarterly measurement process, the net
periodic (benefit) expense for the Significant Plans is
calculated at each respective quarter end based on the
preceding quarter-end rates (as presented below for the U.S.
and non-U.S. pension and postretirement benefit plans). The
actuarial assumptions for All Other Plans are measured
annually.
184
Certain assumptions used in determining pension and postretirement benefit obligations and net benefit expense for the Company’s
plans are presented in the following tables:
At year end
2024
2023
Discount rate
U.S. plans
Qualified pension
5.55%
5.10%
Nonqualified pension
5.60
5.15
Postretirement benefit plan
5.55
5.20
Non-U.S. pension plans
Range
0.85 to 12.50
1.35 to 14.55
Weighted average
7.31
6.91
Non-U.S. postretirement benefit
plan
Range
3.25 to 12.20
3.80 to 10.70
Weighted average
11.21
9.90
Future compensation increase rate(1)
Non-U.S. pension plans
Range
1.60 to 12.40
1.30 to 12.40
Weighted average
3.80
3.84
Expected return on assets
U.S. plans
Qualified pension
6.00
5.70
Postretirement benefit plan(2)
6.00/3.00
5.70/3.00
Non-U.S. pension plans
Range
2.00 to 11.50
2.00 to 11.50
Weighted average
6.27
6.62
Non-U.S. postretirement benefit
plan
Range
8.60 to 9.40
8.60 to 9.40
Weighted average
9.39
9.39
Interest crediting rate (weighted
average)(3)
U.S. plans
4.55
4.10
Non-U.S. plans
1.77
1.78
(1)
Not material for U.S. plans.
(2)
For the years ended 2024 and 2023, the expected return on assets for the
Voluntary Employees Beneficiary Association (VEBA) Trust was
3.00%.
(3)
The Company has cash balance plans and other plans with promised
interest crediting rates. For these plans, the interest crediting rates are set
in line with plan rules or country legislation.
During the year
2024
2023
2022
Discount rate
U.S. plans(1)
Qualified
pension
5.10%/5.30%/
5.50%/4.90%
5.50%/5.15%/
5.40%/6.05%
2.80%/3.80%/
4.80%/5.65%
Nonqualified
pension
5.15/5.40/
5.60/4.95
5.55/5.20/
5.45/6.10
2.80/3.85/
4.80/5.60
Postretirement
benefit plan
5.20/5.40/
5.60/4.90
5.60/5.25/
5.50/6.10
2.75/3.85/
4.75/5.65
Non-U.S. pension plans(2)
Range
1.35 to 14.55
1.75 to 25.20
-0.10 to 11.95
Weighted
average
6.91
6.66
3.96
Non-U.S. postretirement benefit
plan(2)
Range
3.80 to 11.40
3.25 to 11.55
1.05 to 11.25
Weighted
average
9.90
9.80
8.28
Future compensation increase rate(3)
Non-U.S. pension plans(2)
Range
1.30 to 12.40
1.30 to 23.11
1.30 to 11.25
Weighted
average
3.84
3.76
3.10
Expected return on assets
U.S. plans
Qualified
pension(4)
5.70
5.70
5.00
Postretirement
benefit plan(4)
5.70/3.00
5.70/3.00
5.00/1.50
Non-U.S. pension plans(2)
Range
2.00 to 11.50
1.00 to 11.50
0.00 to 11.50
Weighted
average
6.62
6.05
3.69
Non-U.S. postretirement benefit
plan(2)
Range
8.60 to 9.40
8.70 to 9.10
6.00 to 8.00
Weighted
average
9.39
8.70
7.99
Interest crediting rate (weighted
average)(5)
U.S. plans(1)
4.10/4.30/
4.50/3.90
4.50/4.15/
4.40/5.05
1.80/2.80/
3.80/4.65
Non-U.S. plans
1.78
1.73
1.61
(1)
Represents rates used in quarterly remeasurements.
(2)
Reflects rates utilized to determine the quarterly expense for Significant
non-U.S. pension and postretirement benefit plans.
(3)
Not material for U.S. plans.
(4)
The expected return on assets for the U.S. pension and postretirement
benefit plans was adjusted from 5.70% to 6.00% effective January 1,
2025 to reflect a change in economic market conditions. The expected
return on assets for the U.S. pension and postretirement benefit plans
was adjusted from 5.00% to 5.70% effective January 1, 2023 to reflect a
significant change in economic market conditions. For the years 2024
and 2023, the expected return on assets for the VEBA Trust was 3.00%
and for 2022 it was 1.50%.
(5)
The Company has cash balance plans and other plans with promised
interest crediting rates. For these plans, the interest crediting rates are set
in line with plan rules or country legislation.
185
Discount Rate
The discount rates for the U.S. pension and postretirement
benefit plans were selected by reference to a Citigroup-
specific analysis using each plan’s specific cash flows and a
hypothetical bond portfolio of U.S. high-quality corporate
bonds that match each plan’s projected cash flows. The
discount rates for the non-U.S. pension and postretirement
benefit plans are selected by reference to each plan’s specific
cash flows and a market-based yield curve developed from the
available local high-quality corporate bonds. However, where
developed corporate bond markets do not exist, the discount
rates are selected by reference to local government bonds with
an estimated premium added to reflect the additional risk for
corporate bonds in certain countries. Where available, the
resulting plan yields by jurisdiction are compared with
published, high-quality corporate bond indices for
reasonableness.
Expected Return on Assets
The Company determines its assumptions for the expected
return on assets for its U.S. pension and postretirement benefit
plans using a “building block” approach, which focuses on
ranges of anticipated rates of return for each asset class. A
weighted-average range of nominal rates is then determined
based on target allocations to each asset class. Market
performance over a number of earlier years is evaluated
covering a wide range of economic conditions to determine
whether there are sound reasons for projecting any past trends.
The Company considers the expected return on assets to
be a long-term assessment of return expectations and does not
anticipate changing this assumption unless there are
significant changes in investment strategy or economic
conditions. This contrasts with the selection of the discount
rate and certain other assumptions, which are reconsidered
annually (or quarterly for the Significant Plans) in accordance
with GAAP.
The expected return on assets reflects the expected annual
appreciation of the plan assets and reduces the Company’s
annual pension expense. The expected return on assets is
deducted from the sum of service cost, interest cost and other
components of pension expense to arrive at the net pension
expense (benefit).
The following table presents the expected return on assets
used in determining the Company’s pension expense
compared to the actual return on assets during 2024, 2023 and
2022 for the U.S. pension and postretirement benefit plans:
U.S. plans (during the year)
2024
2023
2022
Expected return on assets(1)
U.S. pension and
postretirement trust
5.70%
5.70%
5.00%
VEBA Trust(2)
3.00
3.00
1.50
Actual return on assets(1)
U.S. pension and
postretirement trust
2.55
9.83
(15.52)
VEBA Trust
6.01
5.87
1.40
(1)
Expected return on assets and actual return on assets is presented net of
fees.
(2)
The expected return on assets for the VEBA Trust was adjusted from
1.50% to 3.00% effective January 1, 2023 to reflect the significant
change in economic conditions.
Sensitivities of Certain Key Assumptions
The U.S. Qualified Pension Plan is frozen, and as a result,
pension expense is primarily driven by interest cost. An
increase in the discount rate would increase pension expense,
while a decrease in the discount rate would decrease pension
expense.
For Non-U.S. Pension Plans that are not frozen (in
countries such as Mexico, the U.K. and South Korea), there is
more service cost. The pension expense for the Non-U.S.
Plans is driven by both service cost and interest cost. An
increase in the discount rate generally decreases pension
expense due to the greater impact on service cost compared to
interest cost.
The following tables summarize the effect on pension
expense:
Discount rate
One-percentage-point increase
In millions of dollars
2024
2023
2022
U.S. plans
$
23 $
22 $
27
Non-U.S. plans
(13)
(12)
(5)
One-percentage-point decrease
In millions of dollars
2024
2023
2022
U.S. plans
$
(27) $
(26) $
(34)
Non-U.S. plans
21
20
15
Expected return on assets
One-percentage-point increase
In millions of dollars
2024
2023
2022
U.S. plans
$
(106) $
(112) $
(123)
Non-U.S. plans
(53)
(54)
(60)
One-percentage-point decrease
In millions of dollars
2024
2023
2022
U.S. plans
$
106 $
112 $
123
Non-U.S. plans
53
54
60
186
Health Care Cost Trend Rate
Assumed health care cost trend rates were as follows:
2024
2023
Health care cost increase rate for
U.S. plans
Following year
6.50%
6.75%
Ultimate rate to which cost increase is
assumed to decline
5.00
5.00
Year in which the ultimate rate is
reached
2031
2031
Health care cost increase rate for
non-U.S. plans (weighted average)
Following year
9.20%
7.60%
Ultimate rate to which cost increase is
assumed to decline
6.93
7.02
Year in which the ultimate rate
is reached
2030
2030
Plan Assets
Citigroup’s pension and postretirement benefit plans’ asset allocations for the U.S. plans and the target allocations by asset category
based on asset fair values are as follows:
Target asset
allocation
U.S. pension assets
at December 31,
U.S. postretirement assets
at December 31,
Asset category(1)
2025
2024
2023
2024
2023
Equity securities(2)
0–22%
7 %
7 %
7 %
7 %
Debt securities(3)
55–100
71
71
71
71
Real assets(1)
0–13
5
2
5
2
Private equity
0–5
7
8
7
8
Other investments
0–14
10
12
10
12
Total
100 %
100 %
100 %
100 %
(1)
Target asset allocations are set by investment strategy, whereas pension and postretirement assets as of December 31, 2024 and 2023 are based on the underlying
investment product. For example, the private equity investment strategy may include underlying investments in real assets (includes real estate, infrastructure and
natural resources) within the target asset allocation; however, within pension and postretirement assets, the underlying investment in real assets is reflected in the
real assets category and not private equity.
(2)
Equity securities in the U.S. pension and postretirement benefit plans do not include any Citigroup common stock at the end of 2024 and 2023.
(3)
The VEBA Trust for postretirement benefits is primarily invested in cash equivalents and debt securities in 2024 and 2023 and is not reflected in the table above.
187
Third-party investment managers and advisors provide
their services to Citigroup’s U.S. pension and postretirement
benefit plans. Assets are rebalanced as the Company’s Pension
Plan Investment Committee deems appropriate. Citigroup’s
investment strategy, with respect to its assets, is to maintain a
globally diversified investment portfolio across several asset
classes that, when combined with Citigroup’s contributions to
the plans, will maintain the plans’ ability to meet all required
benefit obligations.
Citigroup’s pension and postretirement benefit plans’
weighted-average asset allocations for the non-U.S. plans and
the actual ranges, and the weighted-average target allocations
by asset category based on asset fair values, are as follows:
Non-U.S. pension plans
Target asset
allocation
Actual range
at December 31,
Weighted average
at December 31,
Asset category(1)
2025
2024
2023
2024
2023
Equity securities
0–49%
0–49%
0–48%
18 %
19 %
Debt securities
0–100
0–100
0–100
73
73
Real assets
0–16
0–16
0–17
1
1
Other investments
0–100
0–100
0–100
8
7
Total
100 %
100 %
Non-U.S. postretirement benefit plans
Target asset
allocation
Actual range
at December 31,
Weighted average
at December 31,
Asset category(1)
2025
2024
2023
2024
2023
Equity securities
0–46%
0–37%
0–46%
36 %
45 %
Debt securities
50–100
59–100
49–100
60
50
Other investments
0–4
0–4
0–5
4
5
Total
100 %
100 %
(1)
Similar to the U.S. plans, asset allocations for certain non-U.S. plans are set by investment strategy, not by investment product.
188
Fair Value Disclosure
For information on fair value measurements, including
descriptions of Levels 1, 2 and 3 of the fair value hierarchy
and the valuation methodology utilized by the Company, see
Notes 1 and 26. Investments measured using the NAV per
share practical expedient are excluded from Level 1, Level 2
and Level 3 in the tables below.
Certain investments may transfer between the fair value
hierarchy classifications during the year due to changes in
valuation methodology and pricing sources.
Plan assets by detailed asset categories and the fair value
hierarchy are as follows:
U.S. pension and postretirement benefit plans(1)
In millions of dollars
Fair value measurement at December 31, 2024
Asset categories
Level 1
Level 2
Level 3
Total
U.S. equities
$
315 $
— $
— $
315
Non-U.S. equities
269
—
—
269
Mutual funds and other registered investment companies
188
—
—
188
Commingled funds
—
515
—
515
Debt securities
390
5,145
—
5,535
Annuity contracts
—
—
3
3
Derivatives
1
35
—
36
Other investments
1
—
1
2
Total investments at fair value
$
1,164 $
5,695 $
4 $
6,863
Cash and short-term investments
$
46 $
439 $
— $
485
Other investment liabilities
(10)
(39)
—
(49)
Net investments at fair value
$
1,200 $
6,095 $
4 $
7,299
Other investment receivables redeemed at NAV
$
18
Securities valued at NAV
2,532
Total net assets
$
9,849
(1)
The investments of the U.S. pension and postretirement benefit plans are commingled in one trust. At December 31, 2024, the allocable interests of the U.S.
pension and postretirement benefit plans were 98.0% and 2.0%, respectively. The investments of the VEBA Trust for postretirement benefits are reflected in the
above table.
U.S. pension and postretirement benefit plans(1)
In millions of dollars
Fair value measurement at December 31, 2023
Asset categories
Level 1
Level 2
Level 3
Total
U.S. equities
$
262 $
— $
— $
262
Non-U.S. equities
315
—
—
315
Mutual funds and other registered investment companies
244
—
—
244
Commingled funds
—
622
—
622
Debt securities
690
5,041
—
5,731
Annuity contracts
—
—
3
3
Derivatives
38
164
—
202
Other investments
—
—
2
2
Total investments
$
1,549 $
5,827 $
5 $
7,381
Cash and short-term investments
$
11 $
651 $
— $
662
Other investment liabilities
(3)
(171)
—
(174)
Net investments at fair value
$
1,557 $
6,307 $
5 $
7,869
Other investment liabilities redeemed at NAV
$
(127)
Securities valued at NAV
2,699
Total net assets
$
10,441
(1)
The investments of the U.S. pension and postretirement benefit plans are commingled in one trust. At December 31, 2023, the allocable interests of the U.S.
pension and postretirement benefit plans were 98.0% and 2.0%, respectively. The investments of the VEBA Trust for postretirement benefits are reflected in the
above table.
189
Non-U.S. pension and postretirement benefit plans
In millions of dollars
Fair value measurement at December 31, 2024
Asset categories
Level 1
Level 2
Level 3
Total
U.S. equities
$
46 $
— $
— $
46
Non-U.S. equities
435
—
—
435
Mutual funds and other registered investment companies
2,990
318
—
3,308
Debt securities
2,303
1,021
—
3,324
Real assets
—
—
2
2
Annuity contracts
—
—
2
2
Derivatives
—
1,208
—
1,208
Other investments
—
—
236
236
Total investments
$
5,774 $
2,547 $
240 $
8,561
Cash and short-term investments
$
113 $
— $
— $
113
Other investment liabilities
—
(1,678)
—
(1,678)
Net investments at fair value
$
5,887 $
869 $
240 $
6,996
Securities valued at NAV
$
17
Total net assets
$
7,013
Non-U.S. pension and postretirement benefit plans
In millions of dollars
Fair value measurement at December 31, 2023
Asset categories
Level 1
Level 2
Level 3
Total
U.S. equities
$
133 $
— $
— $
133
Non-U.S. equities
722
—
—
722
Mutual funds and other registered investment companies
2,706
310
—
3,016
Commingled funds
12
—
—
12
Debt securities
2,620
1,016
—
3,636
Real assets
—
—
2
2
Annuity contracts
—
—
2
2
Derivatives
—
1,137
—
1,137
Other investments
—
—
231
231
Total investments
$
6,193 $
2,463 $
235 $
8,891
Cash and short-term investments
$
83 $
— $
— $
83
Other investment liabilities
—
(1,594)
—
(1,594)
Net investments at fair value
$
6,276 $
869 $
235 $
7,380
Securities valued at NAV
$
16
Total net assets
$
7,396
190
Level 3 Rollforward
The reconciliations of the beginning and ending balances during the year for Level 3 assets are as follows:
In millions of dollars
U.S. pension and postretirement benefit plans
Asset categories
Beginning Level 3
fair value at
Dec. 31, 2023
Realized gains
(losses)
Unrealized gains
(losses)
Purchases,
sales and
issuances
Transfers in and/
or out of Level 3
Ending Level 3
fair value at
Dec. 31, 2024
Annuity contracts
$
3 $
— $
— $
— $
— $
3
Other investments
2
—
1
(2)
—
1
Total investments
$
5 $
— $
1 $
(2) $
— $
4
In millions of dollars
U.S. pension and postretirement benefit plans
Asset categories
Beginning Level 3
fair value at
Dec. 31, 2022
Realized gains
(losses)
Unrealized gains
(losses)
Purchases,
sales and
issuances
Transfers in and/
or out of Level 3
Ending Level 3
fair value at
Dec. 31, 2023
Annuity contracts
$
3 $
— $
— $
— $
— $
3
Other investments
4
—
—
(2)
—
2
Total investments
$
7 $
— $
— $
(2) $
— $
5
In millions of dollars
Non-U.S. pension and postretirement benefit plans
Asset categories
Beginning Level 3
fair value at
Dec. 31, 2023
Unrealized gains
(losses)
Purchases, sales and
issuances
Transfers in and/
or out of Level 3
Ending Level 3
fair value at
Dec. 31, 2024
Real assets
$
2 $
— $
— $
— $
2
Annuity contracts
2
—
—
—
2
Other investments
231
2
3
—
236
Total investments
$
235 $
2 $
3 $
— $
240
In millions of dollars
Non-U.S. pension and postretirement benefit plans
Asset categories
Beginning Level 3
fair value at
Dec. 31, 2022
Unrealized gains
(losses)
Purchases, sales and
issuances
Transfers in and/
or out of Level 3
Ending Level 3
fair value at
Dec. 31, 2023
Real assets
$
2 $
— $
— $
— $
2
Annuity contracts
2
—
—
—
2
Other investments
258
6
(33)
—
231
Total investments
$
262 $
6 $
(33) $
— $
235
191
Investment Strategy
The Company’s global pension and postretirement funds’
investment strategy is to invest in a prudent manner for the
exclusive purpose of providing benefits to participants. The
investment strategies are targeted to produce a total return that,
when combined with the Company’s contributions to the
funds, will maintain the funds’ ability to meet all required
benefit obligations. Risk is controlled through diversification
of asset types and investments in domestic and international
equities, fixed income securities and cash and short-term
investments. The target asset allocation in most locations
outside the U.S. is primarily in equity and debt securities.
These allocations may vary by geographic region and country
depending on the nature of applicable obligations and various
other regional considerations. The wide variation in the actual
range of plan asset allocations for the funded non-U.S. plans is
a result of differing local statutory requirements and economic
conditions. For example, in certain countries local law requires
that all pension plan assets must be invested in fixed income
investments, government funds or local-country securities.
Significant Concentrations of Risk in Plan Assets
The assets of the Company’s pension plans are diversified to
limit the impact of any individual investment. The U.S.
qualified pension plan is diversified across multiple asset
classes, with publicly traded fixed income, hedge funds,
private equity and publicly traded equity representing the most
significant asset allocations. Investments in these four asset
classes are further diversified across funds, managers,
strategies, vintages, sectors and geographies, depending on the
specific characteristics of each asset class. The pension assets
for the Company’s non-U.S. Significant Plans are primarily
invested in publicly traded fixed income and publicly traded
equity securities.
Oversight and Risk Management Practices
The framework for the Company’s pension oversight process
includes monitoring of retirement plans by plan fiduciaries
and/or management at the global, cluster or country level, as
appropriate. Independent Risk Management contributes to the
risk oversight and monitoring for the Company’s U.S.
Qualified Pension Plan and non-U.S. Significant Pension
Plans. Although the specific components of the oversight
process are tailored to the requirements of each cluster,
country and plan, the following elements are common to the
Company’s monitoring and risk management process:
•
periodic asset/liability management studies and strategic
asset allocation reviews;
•
periodic monitoring of funding levels and funding ratios;
•
periodic monitoring of compliance with asset allocation
guidelines;
•
periodic monitoring of asset class and/or investment
manager performance against benchmarks; and
•
periodic risk capital analysis and stress testing.
Estimated Future Benefit Payments
The Company expects to pay the following estimated benefit
payments in future years:
Pension plans
Postretirement
benefit plans
In millions of
dollars
U.S. plans
Non-
U.S. plans
U.S. plans
Non-
U.S. plans
2025
$
1,004 $
551 $
53 $
84
2026
984
482
36
89
2027
967
494
34
95
2028
942
494
31
99
2029
907
505
29
103
2030–2034
3,793
2,582
112
573
Post Employment Plans
The Company sponsors U.S. post employment plans that
provide income continuation and health and welfare benefits
to certain eligible U.S. employees on long-term disability.
The following table summarizes the funded status and
amounts recognized on the Company’s Consolidated Balance
Sheet:
In millions of dollars
2024
2023
Funded status of the plan at year end
$
(49) $
(46)
Net amount recognized in AOCI (pretax)
$
(12) $
(13)
The following table summarizes the net expense
recognized in the Consolidated Statement of Income for the
Company’s U.S. post employment plans:
In millions of dollars
2024
2023
2022
Net expense
$
28 $
14 $
11
Defined Contribution Plans
The Company sponsors defined contribution plans in the U.S.
and in certain non-U.S. locations, all of which are
administered in accordance with local laws. The most
significant defined contribution plan is the Citi Retirement
Savings Plan sponsored by the Company in the U.S.
Under the Citi Retirement Savings Plan, eligible U.S.
employees received matching contributions of up to 6% of
their eligible compensation for 2024 and 2023, subject to
statutory limits. In addition, for eligible employees whose
eligible compensation is $100,000 or less, a fixed contribution
of up to 2% of eligible compensation is provided. All
Company contributions are invested according to participants’
individual elections. The following tables summarize the
Company contributions for the defined contribution plans:
U.S. plans
In millions of dollars
2024
2023
2022
Company contributions
$
591 $
546 $
471
Non-U.S. plans
In millions of dollars
2024
2023
2022
Company contributions
$
461 $
453 $
399
192
9. RESTRUCTURING
As previously disclosed, Citi is pursuing various initiatives to
simplify the Company and further align its organizational
structure with its business strategy. As part of its overall
simplification initiatives, in the fourth quarter of 2023, Citi
eliminated the previous Institutional Clients Group and
Personal Banking and Wealth Management layers, exited
certain institutional business lines, and consolidated its
regional structure, creating one international group, while
centralizing client capabilities and streamlining its global staff
functions.
Citi has recorded net restructuring charges of
approximately $1.040 billion program to date.
Restructuring charges are recorded as a separate line item
within Operating expenses in the Company’s Consolidated
Statement of Income. These charges were included within All
Other—Corporate/Other.
The following costs associated with these initiatives are
included in restructuring charges:
•
Personnel costs: severance costs associated with actual
headcount reductions (as well as those that were probable
and could be reasonably estimated)
•
Other: costs associated with contract terminations and
other direct costs associated with the restructuring,
including asset write-downs (non-cash write-downs of
capitalized software, which are included in Premises and
equipment related to exited businesses)
The following table is a rollforward of the liability related to the restructuring charges:
In millions of dollars
Personnel
costs
Other
Total
Beginning balance at January 1, 2023
$
— $
— $
—
Restructuring charge
687
94
781
Payments and utilization
—
(69)
(69)
Foreign exchange
—
—
—
Ending balance at December 31, 2023
$
687 $
25 $
712
Restructuring charge
354
54
408
Change in estimate(1)(2)
(146)
(3)
(149)
Net restructuring charges
$
208 $
51 $
259
Payments and utilization
$
(860) $
(76) $
(936)
Foreign exchange
7
—
7
Ending balance at December 31, 2024
$
42 $
— $
42
(1)
Revisions primarily relate to higher-than-anticipated redeployments of displaced employees to other positions within the Company, job function releveling and
employee attrition.
(2)
Revisions primarily relate to lower-than-anticipated costs associated with contract terminations.
193
10. INCOME TAXES
Income Tax Provision
Details of the Company’s income tax provision are presented
below:
In millions of dollars
2024
2023
2022
Current
Federal
$
(33) $
41 $
407
Non-U.S.
5,945 5,807 4,106
State and local
195
96
270
Total current income taxes
$ 6,107 $ 5,944 $ 4,783
Deferred
Federal
$ (1,227) $ (1,925) $ (807)
Non-U.S.
(816)
(432)
353
State and local
147
(59)
(687)
Total deferred income taxes
$ (1,896) $ (2,416) $ (1,141)
Provision for income tax on
continuing operations before
noncontrolling interests(1)
$ 4,211 $ 3,528 $ 3,642
Provision (benefit) for income taxes
on:
Discontinued operations
$
— $
— $
(41)
Gains (losses) included in AOCI, but
excluded from net income
1,035
557 (1,573)
Employee stock plans
(5)
(13)
(8)
Opening adjustment to Retained
earnings(2)
—
102
—
Opening adjustment to AOCI(3)
—
12
—
(1)
Includes the tax on realized investment gains (losses) and impairment
losses resulting in a provision (benefit) of $88 million and $(110)
million in 2024, $51 million and $(92) million in 2023 and $14 million
and $(137) million in 2022, respectively.
(2)
Related to the adoption of “Financial Instruments—Credit Losses (Topic
326): Troubled Debt Restructurings and Vintage Disclosures.” See Note
1.
(3)
Related to the adoption of “Financial Services—Insurance: Targeted
Improvements to the Accounting for Long-Duration Contracts.” See
Note 1.
Tax Rate
The reconciliation of the federal statutory income tax rate to
the Company’s effective income tax rate applicable to income
from continuing operations (before noncontrolling interests
and the cumulative effect of accounting changes) for each of
the periods indicated is as follows:
2024
2023
2022
Federal statutory rate
21.0 %
21.0 %
21.0 %
State and local income taxes, net of
federal benefit
1.6
0.3
2.0
Non-U.S. income tax rate differential
4.9
9.5
4.3
Tax audit resolutions
0.1
(0.3)
(3.2)
Nondeductible FDIC premiums(1)
1.2
1.7
1.0
Tax-advantaged investments
(4.2)
(4.4)
(3.0)
Valuation allowance releases(2)
—
(0.2)
(2.3)
Other, net
0.1
(0.3)
(0.4)
Effective income tax rate
24.7 %
27.3 %
19.4 %
(1)
Excludes the 2024 and 2023 FDIC special assessments, which are tax
deductible. See Note 18.
(2)
See “Deferred Tax Assets” below for a description of the components.
As presented in the table above, Citi’s effective tax rate
for 2024 was 24.7%, compared to 27.3% in 2023, reflecting a
different geographic mix of earnings.
Deferred Income Taxes
Deferred income taxes at December 31 related to the
following:
In millions of dollars
2024
2023
Deferred tax assets
Credit loss deduction
$ 5,477 $ 5,449
Deferred compensation and employee
benefits
2,407
2,771
Investment and loan basis differences
4,463
4,706
Tax credit and net operating loss carry-
forwards
15,878 15,250
Fixed assets and leases
4,878
4,297
Other deferred tax assets
5,993
6,584
Gross deferred tax assets
$ 39,096 $ 39,057
Valuation allowance
$ 4,329 $ 3,572
Deferred tax assets after valuation
allowance
$ 34,767 $ 35,485
Deferred tax liabilities
Intangibles and leases
$ (2,340) $ (2,333)
Non-U.S. withholding taxes
(893)
(951)
Derivatives
—
(587)
Other deferred tax liabilities
(1,689)
(2,006)
Gross deferred tax liabilities
$ (4,922) $ (5,877)
Net deferred tax assets
$ 29,845 $ 29,608
194
Unrecognized Tax Benefits
The following is a rollforward of the Company’s unrecognized
tax benefits:
In millions of dollars
2024
2023
2022
Total unrecognized tax benefits at
January 1
$ 1,277 $ 1,311 $ 1,296
Increases for current year’s tax
positions
79
59
55
Increases for prior years’ tax positions
27
51
168
Decreases for prior years’ tax positions
(50)
(138)
(119)
Amounts of decreases relating to
settlements
—
(3)
(50)
Reductions due to lapse of statutes of
limitation
(15)
(4)
(26)
Foreign exchange, acquisitions and
dispositions
(9)
1
(13)
Total unrecognized tax benefits at
December 31
$ 1,309 $ 1,277 $ 1,311
The portions of the total unrecognized tax benefits at
December 31, 2024, 2023 and 2022 that, if recognized, would
affect Citi’s tax expense is $1.0 billion in each of the
respective years. The remaining uncertain tax positions have
offsetting amounts in other jurisdictions or are temporary
differences.
Interest and penalties (not included in unrecognized tax
benefits above) are a component of Provision for income
taxes.
2024
2023
2022
In millions of dollars
Pretax
Net of tax
Pretax
Net of tax
Pretax
Net of tax
Total interest and penalties on the Consolidated Balance Sheet at January 1
$
271 $
205 $ 234 $
176 $ 214 $
164
Total interest and penalties in the Consolidated Statement of Income
53
42
47
38
27
16
Total interest and penalties on the Consolidated Balance Sheet at December 31(1)
309
237
271
205
234
176
(1)
Includes $1 million, $0 million and $3 million for non-U.S. penalties in 2024, 2023 and 2022, respectively.
As of December 31, 2024, Citi was under audit by the
Internal Revenue Service and other major taxing jurisdictions
around the world. It is thus reasonably possible that significant
changes in the gross balance of unrecognized tax benefits may
occur within the next 12 months. The potential range of
amounts that could affect Citi’s effective tax rate is between
$0 and $500 million.
The following are the major tax jurisdictions in which the
Company and its affiliates operate and the earliest tax year
subject to examination:
Jurisdiction
Tax year
United States
2016
New York State and City
2009
Brazil
2022
Hong Kong
2023
India
2018
Mexico
2017
Singapore
2023
United Kingdom
2016
195
Non-U.S. Earnings
Non-U.S. pretax earnings approximated $19.4 billion in 2024,
$19.4 billion in 2023 and $16.2 billion in 2022. As a U.S.
corporation, Citigroup and its U.S. subsidiaries are currently
subject to U.S. taxation on all non-U.S. pretax earnings of
non-U.S. branches. Beginning in 2018, there is a separate
foreign tax credit (FTC) basket for branches. Also, dividends
from a non-U.S. subsidiary or affiliate are effectively exempt
from U.S. taxation. The Company provides income taxes on
the book over tax basis differences of non-U.S. subsidiaries
except to the extent that such differences are indefinitely
reinvested outside the U.S.
At December 31, 2024, $5.8 billion of basis differences of
non-U.S. entities was indefinitely reinvested. At the existing
tax rates (including withholding taxes), additional taxes (net of
U.S. FTCs) of $2.3 billion would have to be provided if such
assertions were reversed.
Deferred Tax Assets
As of December 31, 2024, Citi had a valuation allowance of
$4.3 billion, composed of valuation allowances of $3.3 billion
on its branch basket FTC carry-forwards, $0.6 billion on its
U.S. residual DTA related to its non-U.S. branches, $0.3
billion on local non-U.S. DTAs and $0.1 billion on state net
operating loss carry-forwards. There was an increase of
$0.7 billion from the December 31, 2023 balance of
$3.6 billion. The amount of Citi’s valuation allowances (VA)
may change in future years.
In 2024, Citi’s VA for carry-forward FTCs in its branch
basket increased by $1.4 billion, primarily due to the
geographic mix of earnings in Citi’s foreign branch network.
The level of branch pretax income, the local branch tax
rate and the allocations of overall domestic losses (ODL) and
expenses for U.S. tax purposes to the branch basket are the
main factors in determining the branch VA. There was no
branch basket VA release in 2024.
The following table summarizes Citi’s DTAs:
In billions of dollars
Jurisdiction/component(1)
DTAs balance
December 31,
2024
DTAs balance
December 31,
2023
U.S. federal(2)
Net operating losses (NOLs)(3)
$
3.4 $
3.3
Foreign tax credits (FTCs)
0.7
1.2
General business credits (GBCs)
5.8
5.6
Future tax deductions and credits
12.7
12.0
Total U.S. federal
$
22.6 $
22.1
State and local
New York NOLs
$
1.4 $
1.7
Other state NOLs
0.1
0.1
Future tax deductions
2.5
2.4
Total state and local
$
4.0 $
4.2
Non-U.S.
NOLs
$
0.8 $
1.0
Future tax deductions
2.4
2.3
Total non-U.S.
$
3.2 $
3.3
Total
$
29.8 $
29.6
(1)
All amounts are net of valuation allowances.
(2)
Included in the net U.S. federal DTAs of $22.6 billion as of December
31, 2024 were deferred tax liabilities of $2.8 billion that will reverse in
the relevant carry-forward period and may be used to support the DTAs.
(3)
Consists of non-consolidated tax return NOL carry-forwards that are
eventually expected to be utilized in Citigroup’s consolidated tax return.
196
The following table summarizes the amounts of tax carry-
forwards and their expiration dates:
In billions of dollars
Year of expiration
December
31, 2024
December
31, 2023
U.S. tax return general basket foreign
tax credit carry-forwards(1)
2025
$
— $
0.1
2027
0.7
1.1
Total U.S. tax return general basket
foreign tax credit carry-forwards
$
0.7 $
1.2
U.S. tax return branch basket foreign
tax credit carry-forwards(1)
2028
$
0.7 $
0.7
2029
0.2
0.2
2033
1.4
1.0
2034
1.0
—
Total U.S. tax return branch basket
foreign tax credit carry-forwards
$
3.3 $
1.9
U.S. tax return general business credit
carry-forwards
2032
$
0.4 $
0.4
2033
0.3
0.3
2034
0.2
0.2
2035
0.2
0.2
2036
0.2
0.2
2037
0.5
0.5
2038
0.5
0.5
2039
0.7
0.7
2040
0.7
0.7
2041
0.8
0.8
2042
0.7
0.7
2043
0.3
0.4
2044
0.3
—
Total U.S. tax return general business
credit carry-forwards
$
5.8 $
5.6
U.S. subsidiary separate federal NOL
carry-forwards
2027
$
0.1 $
0.1
2028
0.1
0.1
2030
0.3
0.3
2033
1.6
1.7
2034
1.9
1.9
2035
3.3
3.3
2036
2.1
2.1
2037
1.0
1.0
Unlimited carry-forward period
5.8
5.4
Total U.S. subsidiary separate federal
NOL carry-forwards(2)
$
16.2 $
15.9
New York State NOL carry-forwards(2)
2034
$
8.1 $
9.9
New York City NOL carry-forwards(2)
2034
$
7.2 $
8.7
Non-U.S. NOL carry-forwards(1)
Various
$
1.1 $
1.4
(1)
Before valuation allowance.
(2)
Pretax.
Although realization is not assured, Citi believes that the
realization of the recognized net DTAs of $29.8 billion at
December 31, 2024 is more-likely-than-not, based on
expectations as to future taxable income in the jurisdictions in
which the DTAs arise and consideration of available tax
planning strategies (as defined in ASC 740, Income Taxes).
The majority of Citi’s U.S. federal net operating loss
carry-forward and all of its New York State and City net
operating loss carry-forwards are subject to a carry-forward
period of 20 years. This provides enough time to fully utilize
the DTAs pertaining to these existing NOL carry-forwards.
This is due to Citi’s forecast of sufficient U.S. taxable income
and because New York State and City continue to tax Citi’s
non-U.S. income.
With respect to the FTCs component of the DTAs, the
carry-forward period is 10 years. Utilization of FTCs in any
year is generally limited to 21% of foreign source taxable
income in that year. However, ODL that Citi has incurred of
approximately $9 billion as of December 31, 2024 are allowed
to be reclassified as foreign source income to the extent of
50%–100% (at taxpayer’s election) of domestic source income
produced in subsequent years. Such resulting foreign source
income would help support the realization of the FTC carry-
forwards after VA. As noted in the tables above, Citi’s FTC
carry-forwards were $0.7 billion ($4.0 billion before VA) as of
December 31, 2024, compared to $1.2 billion ($3.1 billion
before VA) as of December 31, 2023. The increased VA on
branch FTCs is reflected in the “Non-U.S. income tax rate
differential” line in the “Tax Rate” section above. Citi believes
that it will more-likely-than-not generate sufficient U.S.
taxable income within the 10-year carry-forward period to be
able to utilize the net FTCs after the VA, after considering any
FTCs produced in the tax return for such period, which must
be used prior to any carry-forward utilization.
197
11. EARNINGS PER SHARE
The following table reconciles the income and share data used in the basic and diluted earnings per share (EPS) computations:
In millions of dollars, except per share amounts
2024
2023
2022
Earnings per common share
Income from continuing operations before attribution of noncontrolling interests
$
12,835 $
9,382 $
15,165
Less: Noncontrolling interests from continuing operations
151
153
89
Net income from continuing operations (for EPS purposes)
$
12,684 $
9,229 $
15,076
Loss from discontinued operations, net of taxes
(2)
(1)
(231)
Citigroup’s net income
$
12,682 $
9,228 $
14,845
Less: Preferred dividends
1,054
1,198
1,032
Net income available to common shareholders
$
11,628 $
8,030 $
13,813
Less: Dividends and undistributed earnings allocated to employee restricted and deferred shares
with rights to dividends, and other relevant items(1), applicable to basic EPS
170
180
113
Net income allocated to common shareholders for basic EPS
$
11,458 $
7,850 $
13,700
Weighted-average common shares outstanding applicable to basic EPS (in millions)
1,901.4
1,930.1
1,946.7
Basic earnings per share
Income from continuing operations
$
6.03 $
4.07 $
7.16
Discontinued operations
—
—
(0.12)
Net income per share—basic(2)
$
6.03 $
4.07 $
7.04
Diluted earnings per share
Net income allocated to common shareholders for basic EPS
$
11,458 $
7,850 $
13,700
Add back: Dividends allocated to employee restricted and deferred shares with rights to dividends
that are forfeitable
74
57
41
Net income allocated to common shareholders for diluted EPS
$
11,532 $
7,907 $
13,741
Weighted-average common shares outstanding applicable to basic EPS (in millions)
$
1,901.4 $
1,930.1 $
1,946.7
Effect of dilutive securities(3)
Employee plans
38.7
25.7
17.6
Adjusted weighted-average common shares outstanding applicable to diluted EPS (in millions)
1,940.1
1,955.8
1,964.3
Diluted earnings per share
Income from continuing operations
$
5.95 $
4.04 $
7.11
Discontinued operations
—
—
(0.12)
Net income per share—diluted(2)
$
5.94 $
4.04 $
7.00
(1)
Other relevant items in 2024 include issuance costs of $11 million, $5 million, $8 million and $12 million related to the redemption of preferred stock series M, U,
D and the remaining redemption of preferred stock series J, respectively, and a benefit of $14 million related to the reversal in 2024 of the 1% excise tax on
preferred stock redemptions during 2023 due to the IRS final regulations issued in June 2024. The issuance costs were reclassified from Additional paid-in capital
to Retained earnings upon redemption of the preferred stock. See Note 22. The total for this line also includes dividends and undistributed earnings ($148 million
combined for 2024) allocated to employee restricted and deferred shares with rights to dividends.
(2)
Due to rounding, earnings per share on continuing operations and discontinued operations may not sum to earnings per share on net income.
(3)
During 2024, 2023 and 2022, there were no weighted-average options outstanding.
198
12. SECURITIES BORROWED, LOANED AND
SUBJECT TO REPURCHASE AGREEMENTS
Securities borrowed and purchased under agreements to
resell, at their respective carrying values, consisted of the
following:
December 31,
In millions of dollars
2024
2023
Securities purchased under
agreements to resell
$
192,950 $
267,319
Securities borrowed
81,115
78,408
Total, net(1)
$
274,065 $
345,727
Allowance for credit losses on
securities purchased and
borrowed(2)
(3)
(27)
Total, net of allowance
$
274,062 $
345,700
Securities loaned and sold under agreements to
repurchase, at their respective carrying values, consisted of
the following:
December 31,
In millions of dollars
2024
2023
Securities sold under agreements
to repurchase
$
239,767 $
264,958
Securities loaned
14,988
13,149
Total, net(1)
$
254,755 $
278,107
(1) The above tables do not include securities-for-securities lending
transactions of $5.2 billion and $4.3 billion at December 31, 2024 and
2023, respectively, where the Company acts as lender and receives
securities that can be sold or pledged as collateral. In these transactions,
the Company recognizes the securities received at fair value within
Other assets and the obligation to return those securities as a liability
within Brokerage payables.
(2)
See Note 16.
The resale and repurchase agreements represent
collateralized financing transactions. Citi executes these
transactions primarily through its broker-dealer subsidiaries to
facilitate customer matched-book activity and to efficiently
fund a portion of Citi’s trading inventory. Transactions
executed by Citi’s bank subsidiaries primarily facilitate
customer financing activity.
To maintain reliable funding under a wide range of
market conditions, including under periods of stress, Citi
manages these activities by taking into consideration the
quality of the underlying collateral and stipulating financing
tenor. Citi manages the risks in its collateralized financing
transactions by conducting daily stress tests to account for
changes in capacity, tenors, haircut, collateral profile and
client actions. In addition, Citi maintains counterparty
diversification by establishing concentration triggers and
assessing counterparty reliability and stability under stress.
The Company’s policy is to take possession of the
underlying collateral, monitor its market value relative to the
amounts due under the agreements and, when necessary,
require prompt transfer of additional collateral in order to
maintain contractual margin protection. For resale and
repurchase agreements, when necessary, the Company posts
additional collateral in order to maintain contractual margin
protection.
Collateral typically consists of government and
government-agency securities, corporate and municipal bonds,
equities and mortgage- and other asset-backed securities.
The resale and repurchase agreements are generally
documented under industry standard agreements that allow the
prompt close-out of all transactions (including the liquidation
of securities held) and the offsetting of obligations to return
cash or securities by the non-defaulting party, following a
payment default or other type of default under the relevant
master agreement. Events of default generally include
(i) failure to deliver cash or securities as required under the
transaction, (ii) failure to provide or return cash or securities
as used for margining purposes, (iii) breach of representation,
(iv) cross-default to another transaction entered into among the
parties, or, in some cases, their affiliates, and (v) a repudiation
of obligations under the agreement. The counterparty that
receives the securities in these transactions is generally
unrestricted in its use of the securities, with the exception of
transactions executed on a tri-party basis, where the collateral
is maintained by a custodian and operational limitations may
restrict its use of the securities.
A substantial portion of the resale and repurchase
agreements is recorded at fair value as the Company elected
the fair value option, as described in Notes 26 and 27. The
remaining portion is carried at the amount of cash initially
advanced or received, plus accrued interest, as specified in the
respective agreements.
The securities borrowing and lending agreements also
represent collateralized financing transactions similar to the
resale and repurchase agreements. Collateral typically consists
of government and government-agency securities and
corporate debt and equity securities.
Similar to the resale and repurchase agreements, securities
borrowing and lending agreements are generally documented
under industry standard agreements that allow the prompt
close-out of all transactions (including the liquidation of
securities held) and the offsetting of obligations to return cash
or securities by the non-defaulting party, following a payment
default or other default by the other party under the relevant
master agreement. Events of default and rights to use
securities under the securities borrowing and lending
agreements are similar to the resale and repurchase agreements
referenced above.
A substantial portion of securities borrowing and lending
agreements is recorded at the amount of cash advanced or
received. The remaining portion is recorded at fair value as the
Company elected the fair value option for certain securities
borrowed and loaned portfolios, as described in Note 27. With
respect to securities loaned, the Company receives cash
collateral in an amount generally in excess of the market value
of the securities loaned. The Company monitors the market
value of securities borrowed and securities loaned on a daily
basis and posts or obtains additional collateral in order to
maintain contractual margin protection.
The enforceability of offsetting rights incorporated in the
master netting agreements for resale and repurchase
agreements, and securities borrowing and lending agreements,
199
is evidenced to the extent that (i) a supportive legal opinion
has been obtained from counsel of recognized standing that
provides the requisite level of certainty regarding the
enforceability of these agreements and (ii) the exercise of
rights by the non-defaulting party to terminate and close out
transactions on a net basis under these agreements will not be
stayed or avoided under applicable law upon an event of
default, including bankruptcy, insolvency or similar
proceeding.
A legal opinion may not have been sought or obtained for
certain jurisdictions where local law is silent or sufficiently
ambiguous to determine the enforceability of offsetting rights
or where adverse case law or conflicting regulation may cast
doubt on the enforceability of such rights. In some
jurisdictions and for some counterparty types, the insolvency
law for a particular counterparty type may be nonexistent or
unclear as overlapping regimes may exist. For example, this
may be the case for certain sovereigns, municipalities, central
banks and U.S. pension plans.
The following tables present the gross and net resale and
repurchase agreements and securities borrowing and lending
agreements and the related offsetting amounts permitted under
ASC 210-20-45. The tables also include amounts related to
financial instruments that are not permitted to be offset under
ASC 210-20-45, but would be eligible for offsetting to the
extent that an event of default has occurred and a legal opinion
supporting enforceability of the offsetting rights has been
obtained. Remaining exposures continue to be secured by
financial collateral, but the Company may not have sought or
been able to obtain a legal opinion evidencing enforceability
of the offsetting right.
As of December 31, 2024
In millions of dollars
Gross amounts
of recognized
assets
Gross amounts
offset on the
Consolidated
Balance Sheet(1)
Net amounts of
assets included on
the Consolidated
Balance Sheet
Amounts not offset on the
Consolidated Balance
Sheet but eligible for
offsetting upon
counterparty default(2)
Net
amounts(3)
Securities purchased under agreements to
resell
$
516,722 $
323,772 $
192,950 $
186,121 $
6,829
Securities borrowed
100,442
19,327
81,115
22,228
58,887
Total
$
617,164 $
343,099 $
274,065 $
208,349 $
65,716
In millions of dollars
Gross amounts
of recognized
liabilities
Gross amounts
offset on the
Consolidated
Balance Sheet(1)
Net amounts of
liabilities included on
the Consolidated
Balance Sheet
Amounts not offset on the
Consolidated Balance
Sheet but eligible for
offsetting upon
counterparty default(2)
Net
amounts(3)
Securities sold under agreements to
repurchase
$
563,539 $
323,772 $
239,767 $
193,714 $
46,053
Securities loaned
34,315
19,327
14,988
12,317
2,671
Total
$
597,854 $
343,099 $
254,755 $
206,031 $
48,724
As of December 31, 2023
In millions of dollars
Gross amounts
of recognized
assets
Gross amounts
offset on the
Consolidated
Balance Sheet(1)
Net amounts of
assets included on
the Consolidated
Balance Sheet
Amounts not offset on the
Consolidated Balance
Sheet but eligible for
offsetting upon
counterparty default(2)
Net
amounts(3)
Securities purchased under agreements to
resell
$
515,533 $
248,214 $
267,319 $
244,783 $
22,536
Securities borrowed
97,881
19,473
78,408
25,433
52,975
Total
$
613,414 $
267,687 $
345,727 $
270,216 $
75,511
In millions of dollars
Gross amounts
of recognized
liabilities
Gross amounts
offset on the
Consolidated
Balance Sheet(1)
Net amounts of
liabilities included on
the Consolidated
Balance Sheet
Amounts not offset on the
Consolidated Balance
Sheet but eligible for
offsetting upon
counterparty default(2)
Net
amounts(3)
Securities sold under agreements to
repurchase
$
513,172 $
248,214 $
264,958 $
181,794 $
83,164
Securities loaned
32,622
19,473
13,149
2,441
10,708
Total
$
545,794 $
267,687 $
278,107 $
184,235 $
93,872
(1)
Includes financial instruments subject to enforceable master netting agreements that are permitted to be offset under ASC 210-20-45.
(2)
Includes financial instruments subject to enforceable master netting agreements that are not permitted to be offset under ASC 210-20-45, but would be eligible for
offsetting to the extent that an event of default has occurred and a legal opinion supporting enforceability of the offsetting right has been obtained.
200
(3)
Remaining exposures continue to be secured by financial collateral, but the Company may not have sought or been able to obtain a legal opinion evidencing
enforceability of the offsetting right.
The following tables present the gross amounts of liabilities associated with repurchase agreements and securities lending agreements
by remaining contractual maturity:
As of December 31, 2024
In millions of dollars
Open and
overnight
Up to 30 days
31–90 days
Greater than
90 days
Total
Securities sold under agreements to repurchase
$
299,527 $
154,036 $
46,635 $
63,341 $
563,539
Securities loaned
25,898
213
1,007
7,197
34,315
Total
$
325,425 $
154,249 $
47,642 $
70,538 $
597,854
As of December 31, 2023
In millions of dollars
Open and
overnight
Up to 30 days
31–90 days
Greater than
90 days
Total
Securities sold under agreements to repurchase
$
289,907 $
134,870 $
35,639 $
52,756 $
513,172
Securities loaned
24,997
—
1,270
6,355
32,622
Total
$
314,904 $
134,870 $
36,909 $
59,111 $
545,794
The following tables present the gross amounts of liabilities associated with repurchase agreements and securities lending agreements
by class of underlying collateral:
As of December 31, 2024
In millions of dollars
Repurchase
agreements
Securities lending
agreements
Total
U.S. Treasury and federal agency securities
$
324,233 $
40 $
324,273
State and municipal securities
183
—
183
Foreign government securities
132,123
1,069
133,192
Corporate bonds
17,467
330
17,797
Equity securities
18,498
32,837
51,335
Mortgage-backed securities
65,279
—
65,279
Asset-backed securities
2,609
23
2,632
Other
3,147
16
3,163
Total
$
563,539 $
34,315 $
597,854
As of December 31, 2023
In millions of dollars
Repurchase
agreements
Securities lending
agreements
Total
U.S. Treasury and federal agency securities
$
223,343 $
461 $
223,804
State and municipal securities
447
2
449
Foreign government securities
174,661
118
174,779
Corporate bonds
12,403
195
12,598
Equity securities
5,853
31,574
37,427
Mortgage-backed securities
85,014
21
85,035
Asset-backed securities
3,032
178
3,210
Other
8,419
73
8,492
Total
$
513,172 $
32,622 $
545,794
201
13. BROKERAGE RECEIVABLES AND BROKERAGE
PAYABLES
The Company has receivables and payables for financial
instruments sold to and purchased from brokers, dealers and
customers, which arise in the ordinary course of business. Citi
is exposed to risk of loss from the inability of brokers, dealers
or customers to pay for purchases or to deliver the financial
instruments sold, in which case Citi would have to sell or
purchase the financial instruments at prevailing market prices.
Credit risk is reduced to the extent that an exchange or
clearing organization acts as a counterparty to the transaction
and replaces the broker, dealer or customer in question.
Citi seeks to protect itself from the risks associated with
customer activities by requiring customers to maintain margin
collateral in compliance with regulatory and internal
guidelines. Margin levels are monitored daily, and customers
deposit additional collateral as required. Where customers
cannot meet collateral requirements, Citi may liquidate
sufficient underlying financial instruments to bring the
customer into compliance with the required margin level.
Exposure to credit risk is impacted by market volatility,
which may impair the ability of clients to satisfy their
obligations to Citi. Credit limits are established and closely
monitored for customers and for brokers and dealers engaged
in forwards, futures and other transactions deemed to be credit
sensitive.
Brokerage receivables and Brokerage payables consisted
of the following:
December 31,
In millions of dollars
2024
2023
Receivables from customers
$
18,512 $
15,986
Receivables from brokers,
dealers and clearing
organizations
32,329
37,929
Total brokerage receivables(1)
$
50,841 $
53,915
Payables to customers
$
51,993 $
49,206
Payables to brokers, dealers and
clearing organizations
14,608
14,333
Total brokerage payables(1)
$
66,601 $
63,539
(1) Includes brokerage receivables and payables recorded by Citi broker-
dealer entities that are accounted for in accordance with the AICPA
Accounting Guide for Brokers and Dealers in Securities as codified in
ASC 940-320.
202
14. INVESTMENTS
The following table presents Citi’s investments by category:
December 31,
In millions of dollars
2024
2023
Debt securities available-for-sale (AFS)
$
226,876 $
256,936
Debt securities held-to-maturity (HTM)(1)
242,382
254,247
Marketable equity securities carried at fair value(2)
151
258
Non-marketable equity securities carried at fair value(2)(3)
427
508
Non-marketable equity securities measured using the measurement alternative(4)
1,574
1,639
Non-marketable equity securities carried at cost(5)
5,247
5,497
Total investments(6)
$
476,657 $
519,085
(1)
Carried at adjusted amortized cost basis, net of any ACL.
(2)
Unrealized gains and losses are recognized in earnings.
(3)
Includes $23 million and $25 million of investments in funds for which the fair values are estimated using the net asset value of the Company’s ownership interest
in the funds at December 31, 2024 and 2023, respectively.
(4)
Impairment losses and adjustments to the carrying value as a result of observable price changes are recognized in earnings. See “Non-Marketable Equity
Securities Not Carried at Fair Value” below.
(5)
Represents shares issued by the Federal Reserve Bank, Federal Home Loan Banks and certain exchanges of which Citigroup is a member.
(6)
Not included in the balances above is approximately $2 billion of accrued interest receivable at December 31, 2024 and 2023, which is included in Other assets on
the Consolidated Balance Sheet. The Company does not recognize an allowance for credit losses on accrued interest receivable for AFS and HTM debt securities,
consistent with its non-accrual policy, which results in timely write-off of accrued interest. The Company did not reverse through interest income any accrued
interest receivables for the years ended December 31, 2024 and 2023.
The following table presents interest and dividend income on investments:
In millions of dollars
2024
2023
2022
Taxable interest
$
17,978 $
17,654 $
10,643
Interest exempt from U.S. federal income tax
317
334
348
Dividend income
367
312
223
Total interest and dividend income on investments
$
18,662 $
18,300 $
11,214
The following table presents realized gains and losses on the sales of investments, which exclude impairment losses:
In millions of dollars
2024
2023
2022
Gross realized investment gains
$
533 $
324 $
323
Gross realized investment losses
(205)
(136)
(256)
Net realized gains on sales of investments
$
328 $
188 $
67
203
Debt Securities Available-for-Sale
The amortized cost and fair value of AFS debt securities were as follows:
December 31, 2024
December 31, 2023
In millions of dollars
Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Allowance
for credit
losses
Fair
value
Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Allowance
for credit
losses
Fair
value
Debt securities AFS
Mortgage-backed
securities(1)
U.S. government-
sponsored agency
guaranteed(2)(3)
$
30,208 $
40 $
942 $
— $ 29,306 $ 30,279 $
170 $
734 $
— $ 29,715
Residential
626
—
2
—
624
426
—
3
—
423
Commercial
1
—
—
—
1
1
—
—
—
1
Total mortgage-backed
securities
$
30,835 $
40 $
944 $
— $ 29,931 $ 30,706 $
170 $
737 $
— $ 30,139
U.S. Treasury and
federal agency
securities
U.S. Treasury
$
52,630 $
13 $
264 $
— $ 52,379 $ 81,684 $
59 $
1,382 $
— $ 80,361
Total U.S. Treasury
and federal agency
securities
$
52,630 $
13 $
264 $
— $ 52,379 $ 81,684 $
59 $
1,382 $
— $ 80,361
State and municipal
$
1,749 $
12 $
103 $
— $
1,658 $
2,204 $
18 $
91 $
— $
2,131
Foreign government
134,002
444
1,087
— 133,359 132,045
528
1,375
— 131,198
Corporate
4,923
19
122
6
4,814
5,610
18
208
8
5,412
Asset-backed
securities(1)
856
3
11
—
848
921
17
—
—
938
Other debt securities
3,887
1
1
—
3,887
6,754
4
1
—
6,757
Total debt securities
AFS
$ 228,882 $
532 $
2,532 $
6 $ 226,876 $ 259,924 $
814 $
3,794 $
8 $ 256,936
(1)
The Company invests in mortgage- and asset-backed securities, which are typically issued by VIEs through securitization transactions. The Company’s maximum
exposure to loss from these VIEs is equal to the carrying amount of the securities, which is reflected in the table above. See Note 23 for mortgage- and asset-
backed securitizations in which the Company has other involvement.
(2)
In January 2023, Citi adopted ASU 2022-01. Upon adoption, Citi transferred $3.3 billion of mortgage-backed securities from HTM classification to AFS
classification as allowed under the ASU. At the time of transfer, the securities were in an unrealized gain position of $0.1 billion, which was recorded in AOCI
upon transfer. See Note 1.
(3)
Amortized cost includes unallocated portfolio-layer cumulative basis adjustments of $(0.2) billion as of December 31, 2024. Gross unrealized gains and gross
unrealized (losses) on mortgage-backed securities excluding the effect of unallocated portfolio-layer hedges cumulative basis adjustments were $35 million and
$(1,129) million, respectively, as of December 31, 2024.
At December 31, 2024, the amortized cost of AFS debt
securities for those in a loss position exceeded their fair value
by $2,532 million. Of the $2,532 million, $1,037 million
represented unrealized losses on AFS debt securities that have
been in a gross unrealized loss position for less than a year
and, of these, 67% were rated investment grade; and
$1,495 million represented unrealized losses on AFS debt
securities that have been in a gross unrealized loss position for
a year or more and, of these, 91% were rated investment
grade. Of the $1,495 million, $688 million represents
mortgage-backed securities.
204
The following table presents the fair value of AFS debt securities that have been in an unrealized loss position:
Less than 12 months
12 months or longer
Total
In millions of dollars
Fair
value
Gross
unrealized
losses
Fair
value
Gross
unrealized
losses
Fair
value
Gross
unrealized
losses
December 31, 2024
Debt securities AFS
Mortgage-backed securities
U.S. government-sponsored agency guaranteed
$ 16,690 $
255 $
8,484 $
687 $ 25,174 $
942
Residential
375
1
216
1
591
2
Commercial
—
—
1
—
1
—
Total mortgage-backed securities
$ 17,065 $
256 $
8,701 $
688 $ 25,766 $
944
U.S. Treasury and federal agency securities
U.S. Treasury
$ 13,660 $
166 $
1,710 $
98 $ 15,370 $
264
Total U.S. Treasury and federal agency securities
$ 13,660 $
166 $
1,710 $
98 $ 15,370 $
264
State and municipal
$
855 $
72 $
335 $
31 $
1,190 $
103
Foreign government
49,384
487
19,719
600
69,103
1,087
Corporate
455
45
2,444
77
2,899
122
Asset-backed securities
388
11
—
—
388
11
Other debt securities
1,098
—
939
1
2,037
1
Total debt securities AFS
$ 82,905 $
1,037 $ 33,848 $
1,495 $ 116,753 $
2,532
December 31, 2023
Debt securities AFS
Mortgage-backed securities
U.S. government-sponsored agency guaranteed
$
8,602 $
86 $
9,734 $
648 $ 18,336 $
734
Residential
352
1
34
2
386
3
Commercial
—
—
—
—
—
—
Total mortgage-backed securities
$
8,954 $
87 $
9,768 $
650 $ 18,722 $
737
U.S. Treasury and federal agency securities
U.S. Treasury
$ 11,851 $
113 $ 57,669 $
1,269 $ 69,520 $
1,382
Total U.S. Treasury and federal agency securities
$ 11,851 $
113 $ 57,669 $
1,269 $ 69,520 $
1,382
State and municipal
$
906 $
17 $
324 $
74 $
1,230 $
91
Foreign government
42,250
540
29,176
835
71,426
1,375
Corporate
2,319
103
1,619
105
3,938
208
Asset-backed securities
154
—
16
—
170
—
Other debt securities
1,864
1
228
—
2,092
1
Total debt securities AFS
$ 68,298 $
861 $ 98,800 $
2,933 $ 167,098 $
3,794
205
The following table presents the amortized cost and fair value of AFS debt securities by contractual maturity dates:
December 31, 2024
In millions of dollars
Amortized
cost
Fair
value
Weighted-
average yield(1)
Mortgage-backed securities(2)
Due within 1 year
$
19 $
19
2.60 %
After 1 but within 5 years
880
869
4.05
After 5 but within 10 years
556
526
3.95
After 10 years
29,573
28,517
4.58
Total(3)
$
31,028 $
29,931
4.55 %
U.S. Treasury and federal agency securities
Due within 1 year
$
30,956 $
30,924
1.91 %
After 1 but within 5 years
21,474
21,280
3.14
After 5 but within 10 years
200
175
3.63
After 10 years
—
—
—
Total
$
52,630 $
52,379
2.42 %
State and municipal
Due within 1 year
$
12 $
12
1.75 %
After 1 but within 5 years
131
126
3.68
After 5 but within 10 years
399
387
3.70
After 10 years
1,207
1,133
3.99
Total
$
1,749 $
1,658
3.89 %
Foreign government
Due within 1 year
$
58,930 $
58,958
4.73 %
After 1 but within 5 years
69,775
69,297
5.17
After 5 but within 10 years
4,770
4,670
4.50
After 10 years
527
434
4.85
Total
$
134,002 $
133,359
4.95 %
All other(4)
Due within 1 year
$
5,122 $
5,110
2.55 %
After 1 but within 5 years
3,731
3,657
3.31
After 5 but within 10 years
741
743
2.18
After 10 years
72
39
1.84
Total
$
9,666 $
9,549
2.81 %
Total debt securities AFS(3)
$
229,075 $
226,876
4.22 %
(1)
Weighted-average yields are weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of
premiums and accretion of discounts and excludes the effects of any related hedging derivatives.
(2)
Includes mortgage-backed securities of U.S. government-sponsored agencies. The Company invests in mortgage- and asset-backed securities, which are typically
issued by VIEs through securitization transactions. See Note 23 for additional information about mortgage- and asset-backed securitizations in which the
Company has other involvement.
(3)
Amortized cost excludes unallocated portfolio-layer cumulative basis adjustments of $(0.2) billion as of December 31, 2024.
(4)
Includes corporate, asset-backed and other debt securities.
206
Debt Securities Held-to-Maturity
The carrying value and fair value of debt securities HTM were as follows:
In millions of dollars
Amortized
cost, net(1)
Gross
unrealized
gains
Gross
unrealized
losses
Fair
value
December 31, 2024
Debt securities HTM
Mortgage-backed securities(2)
U.S. government-sponsored agency guaranteed(3)
$
72,542 $
— $
10,291 $
62,251
Non-U.S. residential
—
—
—
—
Commercial
1,247
12
151
1,108
Total mortgage-backed securities
$
73,789 $
12 $
10,442 $
63,359
U.S. Treasury securities
$
126,142 $
— $
6,934 $
119,208
State and municipal
8,903
27
668
8,262
Foreign government
988
3
—
991
Asset-backed securities(2)
32,560
91
61
32,590
Total debt securities HTM, net
$
242,382 $
133 $
18,105 $
224,410
December 31, 2023
Debt securities HTM
Mortgage-backed securities(2)
U.S. government-sponsored agency guaranteed
$
79,689 $
7 $
8,603 $
71,093
Non-U.S. residential
198
—
—
198
Commercial
1,146
2
156
992
Total mortgage-backed securities
$
81,033 $
9 $
8,759 $
72,283
U.S. Treasury securities
$
131,776 $
— $
9,908 $
121,868
State and municipal
9,182
73
477
8,778
Foreign government
2,210
—
58
2,152
Asset-backed securities(2)
30,046
9
135
29,920
Total debt securities HTM, net
$
254,247 $
91 $
19,337 $
235,001
(1)
Amortized cost is reported net of ACL of $137 million and $95 million at December 31, 2024 and 2023, respectively.
(2)
The Company invests in mortgage- and asset-backed securities. These securitizations are generally considered VIEs. The Company’s maximum exposure to loss
from these VIEs is equal to the carrying amount of the securities, which is reflected in the table above. See Note 23 for mortgage- and asset-backed securitizations
in which the Company has other involvement.
(3)
In January 2023, Citi adopted ASU 2022-01. Upon adoption, Citi transferred $3.3 billion (amortized cost) of mortgage-backed securities from HTM classification
to AFS classification as allowed under the ASU. At the time of transfer, the securities were in an unrealized gain position of $0.1 billion, which was recorded in
AOCI upon transfer. See Note 1.
The Company has the positive intent and ability to hold
these securities to maturity or, where applicable, until the
exercise of any issuer call option, absent any unforeseen
significant changes in circumstances, including deterioration
in credit or changes in regulatory capital requirements.
The net unrealized losses classified in AOCI for HTM
debt securities primarily relate to debt securities previously
classified as AFS that were transferred to HTM, and include
any cumulative fair value hedge adjustments. The net
unrealized loss amount also includes any non-credit-related
changes in fair value of HTM debt securities that have
suffered credit impairment recorded in earnings. The AOCI
balance related to HTM debt securities is amortized as an
adjustment of yield, in a manner consistent with the accretion
of any difference between the carrying value at the transfer
date and par value of the same debt securities.
207
The following table presents the carrying value and fair value of HTM debt securities by contractual maturity dates:
December 31, 2024
In millions of dollars
Amortized
cost(1)
Fair
value
Weighted-
average yield(2)
Mortgage-backed securities
Due within 1 year
$
68 $
68
5.53 %
After 1 but within 5 years
1,127
1,075
3.24
After 5 but within 10 years
1,168
1,075
2.73
After 10 years
71,426
61,141
2.89
Total
$
73,789 $
63,359
2.90 %
U.S. Treasury securities
Due within 1 year
$
36,665 $
36,296
0.94 %
After 1 but within 5 years
89,477
82,912
1.16
After 5 but within 10 years
—
—
—
After 10 years
—
—
—
Total
$
126,142 $
119,208
1.10 %
State and municipal
Due within 1 year
$
32 $
31
2.73 %
After 1 but within 5 years
162
162
3.89
After 5 but within 10 years
1,923
1,810
2.87
After 10 years
6,786
6,259
3.40
Total
$
8,903 $
8,262
3.29 %
Foreign government
Due within 1 year
$
328 $
327
9.95 %
After 1 but within 5 years
660
664
9.80
After 5 but within 10 years
—
—
—
After 10 years
—
—
—
Total
$
988 $
991
9.86 %
All other(3)
Due within 1 year
$
— $
—
— %
After 1 but within 5 years
—
—
—
After 5 but within 10 years
13,040
13,058
6.07
After 10 years
19,520
19,532
5.97
Total
$
32,560 $
32,590
6.01 %
Total debt securities HTM
$
242,382 $
224,410
2.38 %
(1)
Amortized cost is reported net of ACL of $137 million at December 31, 2024.
(2)
Weighted-average yields are weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of
premiums and accretion of discounts and excludes the effects of any related hedging derivatives.
(3)
Includes corporate and asset-backed securities.
HTM Debt Securities Delinquency and Non-Accrual
Details
Citi did not have any HTM debt securities that were
delinquent or on non-accrual status at December 31, 2024 and
2023.
There were no purchased credit-deteriorated HTM debt
securities held by the Company as of December 31, 2024 and
2023.
208
Evaluating Investments for Impairment—AFS Debt
Securities
Overview
The Company conducts periodic reviews of all AFS debt
securities with unrealized losses to evaluate whether the
impairment resulted from expected credit losses or from other
factors and to evaluate the Company’s intent to sell such
securities.
An AFS debt security is impaired when the current fair
value of an individual AFS debt security is less than its
amortized cost basis.
The Company recognizes the entire difference between
amortized cost basis and fair value in earnings for impaired
AFS debt securities that Citi has an intent to sell or for which
Citi believes it will more-likely-than-not be required to sell
prior to recovery of the amortized cost basis. However, for
those AFS debt securities that the Company does not intend to
sell and is not likely to be required to sell, only the credit-
related impairment is recognized in earnings by recording an
allowance for credit losses. Any remaining fair value decline
for such securities is recorded in AOCI. The Company does
not consider the length of time that the fair value of a security
is below its amortized cost when determining if a credit loss
exists.
For AFS debt securities, credit losses exist where Citi
does not expect to receive contractual principal and interest
cash flows sufficient to recover the entire amortized cost basis
of a security. The allowance for credit losses is limited to the
amount by which the AFS debt security’s amortized cost basis
exceeds its fair value. The allowance is increased or decreased
if credit conditions subsequently worsen or improve. Reversals
of credit losses are recognized in earnings.
The Company’s review for impairment of AFS debt
securities generally entails:
•
identification and evaluation of impaired investments;
•
consideration of evidential matter, including an evaluation
of factors or triggers that could cause individual positions
to qualify as credit impaired and those that would not
support credit impairment; and
•
documentation of the results of these analyses, as required
under business policies.
The sections below describe the Company’s process for
identifying expected credit impairments for debt security types
that have the most significant unrealized losses as of
December 31, 2024.
Agency Mortgage-Backed Securities
Citi records no allowances for credit losses on U.S.
government-agency-guaranteed mortgage-backed securities,
because the Company expects to incur no credit losses in the
event of default due to a history of incurring no credit losses
and due to the nature of the counterparties.
State and Municipal Securities
The process for estimating credit losses in Citigroup’s AFS
state and municipal bonds is primarily based on a credit
analysis that incorporates third-party credit ratings. Citi
monitors the bond issuers and any insurers providing default
protection in the form of financial guarantee insurance. The
average external credit rating, disregarding any insurance, is
Aa2/AA. In the event of an external rating downgrade or other
indicator of credit impairment (i.e., based on instrument-
specific estimates of cash flows or probability of issuer
default), the subject bond is specifically reviewed for adverse
changes in the amount or timing of expected contractual
principal and interest payments.
For AFS state and municipal bonds with unrealized losses
that Citi plans to sell or would more-likely-than-not be
required to sell prior to recovery of value, the full impairment
is recognized in earnings. For AFS state and municipal bonds
where Citi has no intent to sell and it is not more-likely-than-
not that the Company will be required to sell, Citi records an
allowance for expected credit losses for the amount it expects
not to collect, capped at the difference between the bond’s
amortized cost basis and fair value.
Recognition and Measurement of Impairment
The following table presents total impairment on AFS investments recognized in earnings:
Year ended
In millions of dollars
2024
2023
2022
Impairment losses recognized in earnings for debt securities that the Company intends to
sell, would more-likely-than-not be required to sell or will be subject to an issuer call
deemed probable of exercise
$
323 $
188 $
360
209
Allowance for Credit Losses on AFS Debt Securities
The allowance for credit losses on AFS debt securities held
that the Company does not intend to sell nor will likely be
required to sell was $6 million and $8 million as of
December 31, 2024 and 2023, respectively.
Non-Marketable Equity Securities Not Carried at
Fair Value
Non-marketable equity securities are required to be measured
at fair value with changes in fair value recognized in earnings
unless (i) the measurement alternative is elected or (ii) the
investment represents Federal Reserve Bank and Federal
Home Loan Bank stock or certain exchange seats that continue
to be carried at cost.
The election to measure a non-marketable equity security
using the measurement alternative is made on an instrument-
by-instrument basis. Under the measurement alternative, an
equity security is carried at cost plus or minus changes
resulting from observable prices in orderly transactions for the
identical or a similar investment of the same issuer. The
carrying value of the equity security is adjusted to fair value
on the date of an observed transaction. Fair value may differ
from the observed transaction price due to a number of factors,
including marketability adjustments and differences in rights
and obligations when the observed transaction is not for the
identical investment held by Citi.
Equity securities under the measurement alternative,
which are composed of private equity investments, are also
assessed for impairment. On a quarterly basis, management
qualitatively assesses whether each equity security under the
measurement alternative is impaired. Impairment indicators
that are considered include, but are not limited to, the
following:
•
a significant deterioration in the earnings performance,
credit rating, asset quality or business prospects of the
investee;
•
a significant adverse change in the regulatory, economic
or technological environment of the investee;
•
a significant adverse change in the general market
condition of either the geographical area or the industry in
which the investee operates;
•
a bona fide offer to purchase, an offer by the investee to
sell or a completed auction process for the same or similar
investment for an amount less than the carrying amount of
that investment; and
•
factors that raise significant concerns about the investee’s
ability to continue as a going concern, such as negative
cash flows from operations, working capital deficiencies
or noncompliance with statutory capital requirements or
debt covenants.
When the qualitative assessment indicates that the equity
security is impaired, its fair value is determined. If the fair
value of the investment is less than its carrying value, the
investment is written down to fair value through earnings.
Below is the carrying value of non-marketable equity
securities measured using the measurement alternative at
December 31, 2024 and 2023:
In millions of dollars
December 31,
2024
December 31,
2023
Measurement alternative:
Carrying value
$
1,574 $
1,639
Below are amounts recognized in earnings and life-to-date
amounts for non-marketable equity securities measured using
the measurement alternative:
Year ended December 31,
In millions of dollars
2024
2023
Measurement alternative(1):
Impairment losses
$
108 $
135
Downward changes for
observable prices
5
24
Upward changes for observable
prices
84
87
(1) See Note 26 for additional information on these nonrecurring fair value
measurements.
Life-to-date amounts
on securities still held
In millions of dollars
December 31, 2024
Measurement alternative:
Impairment losses
$
438
Downward changes for observable prices
38
Upward changes for observable prices
1,033
A similar impairment analysis is performed for non-
marketable equity securities carried at cost. For the years
ended December 31, 2024 and 2023, there was no impairment
loss recognized in earnings for non-marketable equity
securities carried at cost.
Equity Method Investments
Management assesses equity method investments that have
fair values that are less than their respective carrying values
for other-than-temporary impairment (OTTI). Fair value is
measured as price multiplied by quantity if the investee has
publicly listed securities. If the investee is not publicly listed,
other methods are used (see Note 26).
For impaired equity method investments that Citi plans to
sell prior to recovery of value or would more-likely-than-not
be required to sell, with no expectation that the fair value will
recover prior to the expected sale date, the full impairment is
recognized as OTTI in Other revenue regardless of severity
and duration. The measurement of the OTTI does not include
partial projected recoveries subsequent to the balance sheet
date.
210
For impaired equity method investments that management
does not plan to sell and is not more-likely-than-not to be
required to sell prior to recovery of value, the evaluation of
whether an impairment is other-than-temporary is based on
(i) whether and when an equity method investment will
recover in value and (ii) whether the investor has the intent
and ability to hold that investment for a period of time
sufficient to recover the value. The determination of whether
the impairment is considered other-than-temporary considers
the following indicators:
•
the cause of the impairment and the financial condition
and near-term prospects of the issuer, including any
specific events that may influence the operations of the
issuer;
•
the intent and ability to hold the investment for a period of
time sufficient to allow for any anticipated recovery in
market value; and
•
the length of time and extent to which fair value has been
less than the carrying value.
211
15. LOANS
Citigroup loans are reported in two categories: corporate and
consumer. These categories are classified primarily according
to the operating segment, reporting unit and component that
manage the loans in addition to the nature of the obligor, with
corporate loans generally made for corporate institutional and
public sector clients around the world and consumer loans to
retail and small business customers.
CORPORATE LOANS
Corporate loans represent loans and leases managed by
Services, Markets, Banking and the Mexico SBMM
component of All Other—Legacy Franchises. The following
table presents information by corporate loan type:
In millions of dollars
December 31,
2024
December 31,
2023
In North America offices(1)
Commercial and industrial
$
57,730 $
61,008
Financial institutions
41,815
39,393
Mortgage and real estate(2)
18,411
17,813
Installment and other(3)
25,529
23,335
Lease financing
235
227
Total
$
143,720 $
141,776
In offices outside North America(1)
Commercial and industrial
$
92,856 $
93,402
Financial institutions
27,276
26,143
Mortgage and real estate(2)
8,136
7,197
Installment and other(3)
25,800
27,907
Lease financing
40
48
Governments and official
institutions
3,630
3,599
Total
$
157,738 $
158,296
Corporate loans, net of
unearned income, excluding
portfolio-layer hedges
cumulative basis
adjustments(4)(5)(6)
$
301,458 $
300,072
Unallocated portfolio-layer hedges
cumulative basis adjustments(7)
$
(72) $
93
Corporate loans, net of
unearned income(4)(5)(6)
$
301,386 $
300,165
(1)
North America includes the U.S., Canada and Puerto Rico. Mexico is
included in offices outside North America. The classification between
offices in North America and outside North America is based on the
domicile of the booking unit. The difference between the domicile of the
booking unit and the domicile of the managing unit is not material.
(2)
Loans secured primarily by real estate.
(3)
Installment and other includes loans to SPEs and TTS commercial cards.
(4)
Corporate loans are net of unearned income of ($969) million and ($917)
million at December 31, 2024 and 2023, respectively. Unearned income
on corporate loans primarily represents loan origination fees, net of
certain direct origination costs, that are deferred and recognized as
Interest income over the lives of the related loans.
(5)
Not included in the balances above is approximately $2 billion of
accrued interest receivable at December 31, 2024 and 2023, which is
included in Other assets on the Consolidated Balance Sheet.
(6)
Accrued interest receivable considered to be uncollectible is reversed
through interest income. Amounts reversed were not material for the
years ended December 31, 2024 and 2023.
(7)
Represents fair value hedge basis adjustments related to portfolio-layer
method hedges of mortgage and real estate loans, which are not
allocated to individual loans in the portfolio. See Note 24.
The Company sold and/or reclassified to held-for-sale
$5.2 billion and $5.7 billion of corporate loans during the
years ended December 31, 2024 and 2023, respectively. The
Company did not have significant purchases of corporate loans
classified as held-for-investment for the years ended
December 31, 2024 or 2023.
Delinquency Status
Citi generally does not manage corporate loans on a
delinquency basis. See Note 1 for Citi’s policies related to
corporate loans, including its non-accrual policy.
While corporate loans are generally managed based on
their internally assigned risk rating (see further discussion
below), the following tables present delinquency information
by corporate loan type.
212
Corporate Loan Delinquencies and Non-Accrual Details at December 31, 2024
In millions of dollars
30–89 days
past due
and accruing(1)
≥ 90 days
past due and
accruing(1)
Total past due
and accruing
Total
non-accrual(2)
Total
current(3)
Total
loans(4)
Commercial and industrial
$
183 $
35 $
218 $
542 $
147,914 $
148,674
Financial institutions
8
—
8
73
68,297
68,378
Mortgage and real estate
6
2
8
567
25,971
26,546
Lease financing
—
1
1
—
275
276
Other
62
16
78
195
49,552
49,825
Loans at fair value
7,759
Total(5)
$
259 $
54 $
313 $
1,377 $
292,009 $
301,458
Corporate Loan Delinquencies and Non-Accrual Details at December 31, 2023
In millions of dollars
30–89 days
past due
and accruing(1)
≥ 90 days
past due and
accruing(1)
Total past due
and accruing
Total
non-accrual(2)
Total
current(3)
Total
loans(4)
Commercial and industrial
$
308 $
118 $
426 $
717 $
150,308 $
151,451
Financial institutions
9
7
16
51
64,993
65,060
Mortgage and real estate
66
3
69
868
24,001
24,938
Lease financing
—
—
—
—
275
275
Other
66
17
83
246
50,738
51,067
Loans at fair value
7,281
Total(5)
$
449 $
145 $
594 $
1,882 $
290,315 $
300,072
(1)
Corporate loans that are 90 days or more past due are generally classified as non-accrual. Corporate loans are considered past due when principal or interest is
contractually due but unpaid.
(2)
Non-accrual loans generally include those loans that are 90 days or more past due or those loans for which Citi believes, based on actual experience and a forward-
looking assessment of the collectibility of the loan in full, that the payment of interest and/or principal is doubtful.
(3)
Loans less than 30 days past due are presented as current.
(4)
The Total loans column includes loans at fair value, which are not included in the various delinquency columns and, therefore, the tables’ total rows will not cross-
foot.
(5)
Excludes $(72) million of unallocated portfolio-layer hedges cumulative basis adjustments at December 31, 2024.
Citigroup has a risk management process to monitor,
evaluate and manage the principal risks associated with its
corporate loan portfolio. As part of its risk management
process, Citi assigns numeric risk ratings to its corporate loan
facilities based on quantitative and qualitative assessments of
the obligor and facility. These risk ratings are reviewed at least
annually or more often if material events related to the obligor
or facility warrant. Factors considered in assigning the risk
ratings include financial condition of the obligor, qualitative
assessment of management and strategy, amount and sources
of repayment, amount and type of collateral and guarantee
arrangements, amount and type of any contingencies
associated with the obligor and the obligor’s industry and
geography.
The obligor risk ratings are defined by ranges of default
probabilities. The facility risk ratings are defined by ranges of
loss norms, which are the product of the probability of default
and the loss given default. The investment-grade rating
categories are similar to the category BBB-/Baa3 and above as
defined by S&P and Moody’s. Loans classified according to
the bank regulatory definitions as special mention,
substandard, doubtful and loss will have risk ratings within the
non-investment-grade categories.
213
Corporate Loans Credit Quality Indicators
Recorded investment in loans(1)
Term loans by year of origination
Revolving line
of credit
arrangements(2)
December 31,
2024
In millions of dollars
2024
2023
2022
2021
2020
Prior
Investment grade(3)
Commercial and industrial(4)
$ 36,039 $
8,101 $
5,035 $
2,492 $
1,225 $
4,853 $
32,862 $
90,607
Financial institutions(4)
13,074
2,136
1,162
326
265
1,500
41,415
59,878
Mortgage and real estate
5,325
3,927
3,269
2,537
1,460
1,533
248
18,299
Other(5)
5,773
2,643
4,036
822
1,156
5,578
24,623
44,631
Total investment grade
$ 60,211 $ 16,807 $ 13,502 $
6,177 $
4,106 $ 13,464 $
99,148 $
213,415
Non-investment grade(3)
Accrual
Commercial and industrial(4)
$ 24,937 $
5,082 $
3,576 $
1,583 $
318 $
2,560 $
19,468 $
57,524
Financial institutions(4)
4,103
529
255
655
41
355
2,489
8,427
Mortgage and real estate
801
1,112
1,936
1,400
770
1,190
472
7,681
Other(5)
1,227
592
427
261
190
274
2,304
5,275
Non-accrual
Commercial and industrial(4)
43
78
48
17
7
44
305
542
Financial institutions
—
—
—
55
—
—
18
73
Mortgage and real estate
16
2
104
107
28
279
31
567
Other(5)
1
—
1
18
—
19
156
195
Total non-investment grade
$ 31,128 $
7,395 $
6,347 $
4,096 $
1,354 $
4,721 $
25,243 $
80,284
Loans at fair value(6)
$
7,759
Corporate loans, net of unearned
income(7)
$ 91,339 $ 24,201 $ 19,849 $ 10,274 $
5,460 $ 18,185 $
124,391 $
301,458
214
Recorded investment in loans(1)
Term loans by year of origination
Revolving line
of credit
arrangements(2)
December 31,
2023
In millions of dollars
2023
2022
2021
2020
2019
Prior
Investment grade(3)
Commercial and industrial(4)
$ 47,811 $
7,738 $
3,641 $
2,279 $
2,604 $
6,907 $
34,956 $
105,936
Financial institutions(4)
11,002
2,356
2,834
424
557
1,847
36,715
55,735
Mortgage and real estate
3,628
4,433
3,595
2,544
1,238
1,582
66
17,086
Other(5)
4,653
5,781
1,072
1,029
812
5,302
29,335
47,984
Total investment grade
$ 67,094 $ 20,308 $ 11,142 $
6,276 $
5,211 $ 15,638 $
101,072 $
226,741
Non-investment grade(3)
Accrual
Commercial and industrial(4)
$ 17,570 $
4,785 $
1,914 $
1,359 $
732 $
2,526 $
15,912 $
44,798
Financial institutions(4)
4,207
748
1,084
56
194
260
2,725
9,274
Mortgage and real estate
1,034
1,234
1,378
947
755
1,016
620
6,984
Other(5)
653
434
248
158
211
155
1,253
3,112
Non-accrual
Commercial and industrial
53
46
84
35
45
93
361
717
Financial institutions(4)
—
—
—
—
—
—
51
51
Mortgage and real estate
118
233
8
38
110
308
53
868
Other(5)
8
—
41
—
55
12
130
246
Total non-investment grade
$ 23,643 $
7,480 $
4,757 $
2,593 $
2,102 $
4,370 $
21,105 $
66,050
Loans at fair value(6)
$
7,281
Corporate loans, net of unearned
income
$ 90,737 $ 27,788 $ 15,899 $
8,869 $
7,313 $ 20,008 $
122,177 $
300,072
(1)
Recorded investment in a loan includes net deferred loan fees and costs, unamortized premium or discount, less any direct write-downs.
(2)
There were no significant revolving line of credit arrangements that converted to term loans during the year.
(3)
Held-for-investment loans are accounted for on an amortized cost basis.
(4)
Includes certain short-term loans with less than one year in tenor.
(5)
Other includes installment and other, lease financing and loans to government and official institutions.
(6)
Loans at fair value include loans to commercial and industrial, financial institutions, mortgage and real estate and other.
(7)
Excludes $(72) million of unallocated portfolio-layer hedges cumulative basis adjustments at December 31, 2024.
215
Corporate Gross Credit Losses
The tables below detail gross credit losses recognized during the years ended December 31, 2024 and 2023, by year of loan
origination:
For the year ended December 31, 2024
In millions of dollars
2024
2023
2022
2021
2020
Prior
Revolving
line of credit
arrangement
Total
Commercial and industrial
$
18 $
2 $
3 $
9 $
20 $
15 $
184 $
251
Financial institutions
—
—
—
—
—
1
9
10
Mortgage and real estate
1
37
11
1
—
85
29
164
Other(1)
1
—
12
—
17
38
68
Total
$
20 $
39 $
14 $
22 $
20 $
118 $
260 $
493
For the year ended December 31, 2023
In millions of dollars
2023
2022
2021
2020
2019
Prior
Revolving line
of credit
arrangement
Total
Commercial and industrial
$
27 $
20 $
1 $
1 $
— $
10 $
130 $
189
Financial institutions
1
1
—
—
—
—
38
40
Mortgage and real estate
—
9
—
15
—
11
5
40
Other(1)
—
—
—
—
—
—
59
59
Total
$
28 $
30 $
1 $
16 $
— $
21 $
232 $
328
(1)
Other includes installment and other, lease financing and loans to government and official institutions.
Non-Accrual Corporate Loans
December 31, 2024
December 31, 2023
In millions of dollars
Recorded
investment(1)(2)
Related specific
allowance
Recorded
investment(1)(2)
Related specific
allowance
Non-accrual corporate loans with specific allowances
Commercial and industrial
$
199 $
86 $
507 $
168
Financial institutions
—
—
48
15
Mortgage and real estate
276
42
697
128
Other
185
174
185
51
Total non-accrual corporate loans with specific allowances $
660 $
302 $
1,437 $
362
Non-accrual corporate loans without specific allowances
Commercial and industrial
$
343
$
210
Financial institutions
73
3
Mortgage and real estate
291
171
Lease financing
—
—
Other
10
61
Total non-accrual corporate loans without specific
allowances
$
717
N/A $
445
N/A
(1)
Recorded investment in a loan includes net deferred loan fees and costs, unamortized premium or discount, less any direct write-downs.
(2)
Interest income recognized for the years ended December 31, 2024, 2023 and 2022 was $65 million, $38 million and $66 million, respectively.
N/A Not applicable
216
Corporate Loan Modifications to Borrowers Experiencing
Financial Difficulty
Citi seeks to modify certain corporate loans to borrowers
experiencing financial difficulty to reduce Citi’s exposure to
loss, often providing the borrower with an opportunity to work
through financial difficulties. Each modification is unique to
the borrower’s individual circumstances. The following tables
detail corporate loan modifications granted during the year
ended December 31, 2024 to borrowers experiencing financial
difficulty by type of modification granted and the financial
effect of those modifications. Citi defines a corporate loan
modification to a borrower experiencing financial difficulty as
a modification of a loan classified as substandard or worse at
the time of modification.
For the year ended December 31, 2024
In millions of dollars, except for weighted-average
term extension
Total modifications
balance at
December 31,
2024(1)(2)(3)
Term
extension
Combination:
Term extension and
payment delay(4)
Weighted-average
term extension
(months)
Commercial and industrial
$
251 $
251 $
—
16
Financial institutions
—
—
—
—
Mortgage and real estate
105
105
—
8
Other(5)
—
—
—
—
Total
$
356 $
356 $
—
(1)
The above table reflects activity for loans outstanding as of the end of the reporting period. The balances are not significant as a percentage of the total carrying
values of loans by class of receivable as of December 31, 2024.
(2)
Commitments to lend to borrowers experiencing financial difficulty that were granted modifications totaled $878 million as of December 31, 2024.
(3)
The allowance for corporate loans, including modified loans, is based on the borrower’s overall financial performance. Charge-offs for amounts deemed
uncollectible may be recorded at the time of the modification or may have already been recorded in prior periods such that no charge-off is required at the time of
modification.
(4)
Payment delays either for principal or interest payments had an immaterial financial impact.
(5)
Other includes installment and other, lease financing and loans to government and official institutions.
For the year ended December 31, 2023
In millions of dollars, except for weighted-average
term extension
Total modifications
balance at
December 31,
2023(1)(2)(3)
Term
extension
Combination:
Term extension and
payment delay(4)
Weighted-average
term extension
(months)
Commercial and industrial
$
198 $
180 $
18 $
19
Financial institutions
—
—
—
—
Mortgage and real estate
144
143
1
24
Other(5)
—
—
—
—
Total
$
342 $
323 $
19 $
—
(1)
The above table reflects activity for loans outstanding as of the end of the reporting period. The balances are not significant as a percentage of the total carrying
values of loans by class of receivable as of December 31, 2023.
(2)
Commitments to lend to borrowers experiencing financial difficulty that were granted modifications totaled $1.2 billion as of December 31, 2023.
(3)
The allowance for corporate loans, including modified loans, is based on the borrower’s overall financial performance. Charge-offs for amounts deemed
uncollectible may be recorded at the time of the modification or may have already been recorded in prior periods such that no charge-off is required at the time of
modification.
(4)
Payment delays either for principal or interest payments had an immaterial financial impact.
(5)
Other includes installment and other, lease financing and loans to government and official institutions.
217
Performance of Modified Corporate Loans
The following table presents the delinquencies of modified corporate loans to borrowers experiencing financial difficulty. It includes
loans that were modified during the year ended December 31, 2024:
As of December 31, 2024(1)
In millions of dollars
Total
Current
30–89 days
past due
90+ days
past due
Commercial and industrial
$
251 $
251 $
— $
—
Financial institutions
—
—
—
—
Mortgage and real estate
105
105
—
—
Other(2)
—
—
—
—
Total
$
356 $
356 $
— $
—
(1)
Corporate loans are generally not modified as a result of their delinquency status; rather, they are modified because of events that have impacted the overall
financial performance of the borrower. Corporate loans, if past due, are re-aged to current status upon modification.
(2)
Other includes installment and other, lease financing and loans to government and official institutions.
Defaults of Modified Corporate Loans
No modified corporate loans to borrowers experiencing
financial difficulty defaulted during the year ended
December 31, 2024. Default is defined as 60 days past due,
except for classifiably managed commercial banking loans,
where default is defined as 90 days past due. For a modified
corporate loan that is not collateral dependent, expected
default rates are considered in the loan’s individually assessed
ACL.
CONSUMER LOANS
Consumer loans represent loans and leases managed primarily
by USPB, Wealth and All Other—Legacy Franchises (except
Mexico SBMM).
Citigroup has established a risk management process to
monitor, evaluate and manage the principal risks associated
with its consumer loan portfolio. Credit quality indicators that
are actively monitored include delinquency status, consumer
credit scores under Fair Isaac Corporation (FICO) and loan-to-
value (LTV) ratios, each as discussed in more detail below.
See Note 1 for Citi’s policies related to consumer loans,
including non-accrual and charge-off policies.
218
The following tables provide Citi’s consumer loans by type:
Consumer Loans, Delinquencies and Non-Accrual Status at December 31, 2024
In millions of dollars
Total
current(1)(2)
30–89
days past
due(3)
≥ 90 days
past
due(3)
Past due
government
guaranteed(4)
Total
loans
Non-
accrual
loans for
which
there is no
ACLL
Non-
accrual
loans for
which
there is an
ACLL
Total
non-
accrual
90 days
past due
and accruing
In North America offices(5)
Residential first mortgages(6)
$ 113,613 $
397 $
349 $
234 $ 114,593 $
114 $
409 $
523 $
128
Home equity loans(7)(8)
3,060
23
58
—
3,141
25
114
139
—
Credit cards
166,021
2,333
2,705
— 171,059
—
—
—
2,705
Personal, small business and
other(9)
33,010
94
50
1
33,155
7
154
161
2
Total
$ 315,704 $
2,847 $
3,162 $
235 $ 321,948 $
146 $
677 $
823 $
2,835
In offices outside North America(5)
Residential mortgages(6)
$
24,358 $
38 $
60 $
— $ 24,456 $
— $
155 $
155 $
—
Credit cards
12,523
190
214
—
12,927
—
211
211
72
Personal, small business and
other(9)
33,859
100
36
—
33,995
—
121
121
—
Total
$
70,740 $
328 $
310 $
— $ 71,378 $
— $
487 $
487 $
72
Total excluding portfolio-layer
hedges cumulative basis
adjustments
$ 386,444 $
3,175 $
3,472 $
235 $ 393,326 $
146 $
1,164 $ 1,310 $
2,907
Unallocated portfolio-layer hedges
cumulative basis adjustments(10)
$
(224)
Total Citigroup(11)(12)
$ 393,102
Consumer Loans, Delinquencies and Non-Accrual Status at December 31, 2023
In millions of dollars
Total
current(1)(2)
30–89
days past
due(3)
≥ 90 days
past
due(3)
Past due
government
guaranteed(4)
Total
loans
Non-
accrual
loans for
which
there is no
ACLL
Non-
accrual
loans for
which
there is an
ACLL
Total
non-
accrual
90 days
past due
and accruing
In North America offices(5)
Residential first mortgages(6)
$ 107,720 $
462 $
294 $
235 $ 108,711 $
105 $
384 $
489 $
120
Home equity loans(7)(8)
3,471
36
85
—
3,592
48
126
174
—
Credit cards
159,966
2,293
2,461
— 164,720
—
—
—
2,461
Personal, small business and
other(9)
35,970
104
57
4
36,135
6
59
65
5
Total
$ 307,127 $
2,895 $
2,897 $
239 $ 313,158 $
159 $
569 $
728 $
2,586
In offices outside North America(5)
Residential mortgages(6)
$
26,309 $
48 $
69 $
— $ 26,426 $
— $
243 $
243 $
—
Credit cards
13,797
209
227
—
14,233
—
211
211
88
Personal, small business and
other(9)
35,233
107
40
—
35,380
—
133
133
—
Total
$
75,339 $
364 $
336 $
— $ 76,039 $
— $
587 $
587 $
88
Total Citigroup(11)(12)
$ 382,466 $
3,259 $
3,233 $
239 $ 389,197 $
159 $
1,156 $ 1,315 $
2,674
(1)
Loans less than 30 days past due are presented as current.
(2)
Includes $281 million and $313 million at December 31, 2024 and 2023, respectively, of residential first mortgages recorded at fair value.
(3)
Excludes loans guaranteed by U.S. government-sponsored agencies. Excludes delinquencies on $25.9 billion and $17.6 billion of classifiably managed Private
Bank loans in North America and outside North America, respectively, at December 31, 2024. Excludes delinquencies on $29.2 billion and $17.0 billion of
classifiably managed Private Bank loans in North America and outside North America, respectively, at December 31, 2023.
(4)
Consists of loans that are guaranteed by U.S. government-sponsored agencies that are 30–89 days past due of $0.1 billion and $0.1 billion and 90 days or more
past due of $0.1 billion and $0.1 billion at December 31, 2024 and 2023, respectively.
(5)
North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America.
219
(6)
Includes approximately $0.2 billion and less than $0.1 billion of residential first mortgage loans in process of foreclosure in North America and outside North
America, respectively, and $19.1 billion of residential mortgages outside North America related to Wealth at December 31, 2024. Includes approximately
$0.1 billion and less than $0.1 billion of residential first mortgage loans in process of foreclosure in North America and outside North America, respectively, and
$19.9 billion of residential mortgages outside North America related to Wealth at December 31, 2023.
(7)
Includes less than $0.1 billion and less than $0.1 billion at December 31, 2024 and 2023, respectively, of home equity loans in process of foreclosure.
(8)
Fixed-rate home equity loans and loans extended under home equity lines of credit, which are typically in junior lien positions.
(9)
As of December 31, 2024, Wealth in North America includes $28.1 billion of loans, of which $25.9 billion are classifiably managed with 83% rated investment
grade, and Wealth outside North America includes $25.4 billion of loans, of which $17.6 billion are classifiably managed with 56% rated investment grade. As of
December 31, 2023, Wealth in North America includes $31.6 billion of loans, of which $29.2 billion are classifiably managed with 92% rated investment grade,
and Wealth outside North America includes $24.9 billion of loans, of which $17.0 billion are classifiably managed with 74% rated investment grade. Such loans
are presented as “current” above.
(10) Represents fair value hedge basis adjustments related to portfolio-layer method hedges of mortgage and real estate loans, which are not allocated to individual
loans in the portfolio. See Note 24.
(11) Consumer loans were net of unearned income of $889 million and $802 million at December 31, 2024 and 2023, respectively. Unearned income on consumer
loans primarily represents loan origination fees, net of certain direct origination costs, that are deferred and recognized as Interest income over the lives of the
related loans.
(12) Not included in the balances above is approximately $1 billion and $1 billion of accrued interest receivable at December 31, 2024 and 2023, respectively, which is
included in Other assets on the Consolidated Balance Sheet, except for credit card loans (which include accrued interest and fees). During the years ended
December 31, 2024 and 2023, the Company reversed accrued interest (primarily related to credit cards) of approximately $1.7 billion and $1.1 billion,
respectively. These reversals of accrued interest are reflected as a reduction to Interest income in the Consolidated Statement of Income.
Interest Income Recognized for Non-Accrual Consumer Loans
For the years ended December 31,
In millions of dollars
2024
2023
In North America offices(1)
Residential first mortgages
$
9 $
11
Home equity loans
5
6
Personal, small business and other
1
3
Total
$
15 $
20
In offices outside North America(1)
Residential mortgages
$
9 $
10
Personal, small business and other
2
—
Total
$
11 $
10
Total Citigroup
$
26 $
30
(1)
North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America.
Sales and Purchases of Consumer Loans
During the years ended December 31, 2024 and 2023, the
Company sold and/or reclassified to held-for-sale (HFS)
approximately $335 million and $2,166 million of consumer
loans, respectively. The higher sale activity in 2023 was
primarily related to a larger mortgage portfolio sold. Except
for the acquisition of an approximate $700 million credit card
portfolio during the year ended December 31, 2024, the
Company did not have significant purchases of consumer
loans classified as held-for-investment during the years ended
December 31, 2024 and 2023. Loans held by businesses that
are for sale are not included in the above since they have been
reclassified to Other assets. See Note 2 for additional
information regarding Citigroup’s businesses held-for-sale.
220
Consumer Credit Scores (FICO)
In the U.S., independent credit agencies rate an individual’s
risk for assuming debt based on the individual’s credit history
and assign every consumer a Fair Isaac Corporation (FICO)
credit score. These scores are continually updated by the
agencies based on an individual’s credit actions (e.g., taking
out a loan or missed or late payments).
The following tables provide details on the FICO scores
for Citi’s U.S. consumer loan portfolio based on end-of-period
receivables by year of origination. FICO scores are updated
monthly for substantially all of the portfolio or, otherwise, on
a quarterly basis for the remaining portfolio. Loans that did
not have FICO scores as of the prior period have been updated
with FICO scores as they become available.
With respect to Citi’s consumer loan portfolio outside of
the U.S. as of December 31, 2024 and 2023 ($72.5 billion and
$77.5 billion, respectively), various country-specific or
regional credit risk metrics and acquisition and behavior
scoring models are leveraged as one of the factors to evaluate
the credit quality of customers (see “Consumer Loans and
Ratios Outside of North America” below). As a result, details
of relevant credit quality indicators for those loans are not
comparable to the below FICO score distribution for the U.S.
portfolio.
FICO score distribution—U.S. portfolio(1)
December 31, 2024
In millions of dollars
Less than
660
660
to 739
Greater
than or
equal to 740
Classifiably
managed(2)
FICO not
available(3)
Total
loans
Residential first mortgages
2024
$
123 $
2,213 $
10,308
2023
223
2,451
12,936
2022
354
3,272
16,034
2021
312
2,745
14,651
2020
298
1,990
12,245
Prior
1,473
5,034
20,573
Total residential first mortgages
$
2,783 $
17,705 $
86,747 $
— $
7,358 $
114,593
Home equity line of credit (pre-reset)
$
266 $
764 $
1,597
Home equity line of credit (post-reset)
58
80
75
Home equity term loans
45
87
114
2024
—
—
—
2023
—
—
—
2022
—
—
—
2021
—
—
1
2020
—
1
2
Prior
45
86
111
Total home equity loans
$
369 $
931 $
1,786 $
— $
55 $
3,141
Credit cards
$
22,855 $
59,574 $
83,935
Revolving loans converted to term loans(4)
1,462
668
129
Total credit cards(5)
$
24,317 $
60,242 $
84,064 $
— $
1,874 $
170,497
Personal, small business and other
2024
$
96 $
398 $
1,219
2023
132
282
577
2022
131
180
271
2021
28
38
54
2020
2
2
4
Prior
94
152
150
Total personal, small business and other(6)(7)
$
483 $
1,052 $
2,275 $
25,860 $
2,730 $
32,400
Total(8)
$
27,952 $
79,930 $
174,872 $
25,860 $
12,017 $
320,631
221
FICO score distribution—U.S. portfolio(1)
December 31, 2023
In millions of dollars
Less than
660
660
to 739
Greater
than or equal
to 740
Classifiably
managed(2)
FICO not
available(3)
Total
loans
Residential first mortgages
2023
$
163 $
2,758 $
14,309
2022
339
3,423
16,834
2021
270
3,107
15,094
2020
232
2,143
12,827
2019
138
1,382
6,266
Prior
1,377
4,122
16,164
Total residential first mortgages
$
2,519 $
16,935 $
81,494 $
— $
7,763 $
108,711
Home equity line of credit (pre-reset)
$
300 $
905 $
1,873
Home equity line of credit (post-reset)
61
76
69
Home equity term loans
56
111
136
2023
—
—
—
2022
—
—
—
2021
—
—
1
2020
2
1
2
2019
—
1
2
Prior
54
109
131
Total home equity loans
$
417 $
1,092 $
2,078 $
— $
5 $
3,592
Credit cards
$
21,899 $
57,479 $
81,168
Revolving loans converted to term loans(4)
1,011
490
108
Total credit cards(5)
$
22,910 $
57,969 $
81,276 $
— $
1,955 $
164,110
Personal, small business and other
2023
$
88 $
343 $
996
2022
204
351
583
2021
52
83
128
2020
6
9
14
2019
5
7
8
Prior
96
169
168
Total personal, small business and other(6)(7)
$
451 $
962 $
1,897 $
29,209 $
2,739 $
35,258
Total
$
26,297 $
76,958 $
166,745 $
29,209 $
12,462 $
311,671
(1)
The FICO bands in the tables are consistent with general industry peer presentations.
(2)
These personal, small business and other loans without a FICO score available include $25.9 billion and $29.2 billion of Private Bank loans as of December 31,
2024 and 2023, respectively, which are classifiably managed within Wealth and are primarily evaluated for credit risk based on their internal risk ratings. As of
December 31, 2024 and 2023, approximately 83% and 92% of these loans, respectively, were rated investment grade.
(3)
FICO scores not available primarily relate to loans guaranteed by government-sponsored enterprises for which FICO scores are generally not utilized.
(4)
Not included in the tables above are $33 million and $51 million of revolving credit card loans outside of the U.S. that were converted to term loans as of
December 31, 2024 and 2023, respectively.
(5)
Excludes $562 million and $610 million of balances related to Canada for December 31, 2024 and 2023, respectively.
(6)
Excludes $755 million and $877 million of balances related to Canada for December 31, 2024 and 2023, respectively.
(7)
Includes approximately $22 million and $37 million of personal revolving loans that were converted to term loans for December 31, 2024 and 2023, respectively.
(8)
Excludes $(224) million of unallocated portfolio-layer hedges cumulative basis adjustments at December 31, 2024.
222
Consumer Gross Credit Losses
The following tables provide details on gross credit losses recognized during the years ended December 31, 2024 and 2023, by year of
loan origination:
In millions of dollars
For the year ended
December 31, 2024
Residential first mortgages
2024
$
—
2023
1
2022
—
2021
—
2020
—
Prior
47
Total residential first mortgages
$
48
Home equity line of credit (pre-reset)
$
15
Home equity line of credit (post-reset)
2
Home equity term loans
2
Total home equity loans
$
19
Credit cards
$
9,069
Revolving loans converted to term loans
265
Total credit cards
$
9,334
Personal, small business and other
2024
$
171
2023
204
2022
165
2021
64
2020
25
Prior
171
Total personal, small business and other
$
800
Total Citigroup
$
10,201
In millions of dollars
For the year ended
December 31, 2023
Residential first mortgages
2023
$
—
2022
2
2021
1
2020
1
2019
5
Prior
41
Total residential first mortgages
$
50
Home equity line of credit (pre-reset)
$
3
Home equity line of credit (post-reset)
—
Home equity term loans
4
Total home equity loans
$
7
Credit cards
$
6,575
Revolving loans converted to term loans
184
Total credit cards
$
6,759
Personal, small business and other
2023
$
162
2022
202
2021
106
2020
44
2019
51
Prior
172
Total personal, small business and other
$
737
Total Citigroup
$
7,553
223
Loan-to-Value (LTV) Ratios—U.S. Consumer Mortgages
LTV ratios (loan balance divided by appraised value) are
calculated at origination and updated by applying market price
data.
The following tables provide details on the LTV ratios for
Citi’s U.S. consumer mortgage portfolios by year of
origination. LTV ratios are updated monthly using the most
recent Core Logic Home Price Index data available for
substantially all of the portfolio, applied at the Metropolitan
Statistical Area level, if available, or the state level if not. The
remainder of the portfolio is updated in a similar manner using
the Federal Housing Finance Agency indices.
LTV distribution—U.S. portfolio(1)
December 31, 2024
In millions of dollars
Less than
or equal
to 80%
> 80% but less
than or equal
to 100%
Greater
than
100%
LTV not
available(1)
Total
Residential first mortgages
2024
$
9,196 $
3,550 $
1
2023
13,973
2,036
2
2022
18,546
2,078
42
2021
18,247
472
33
2020
15,434
226
1
Prior
28,797
351
25
Total residential first mortgages
$
104,193 $
8,713 $
104 $
1,583 $
114,593
Home equity loans (pre-reset)
$
2,514 $
26 $
45
Home equity loans (post-reset)
435
3
9
Total home equity loans
$
2,949 $
29 $
54 $
109 $
3,141
Total(2)
$
107,142 $
8,742 $
158 $
1,692 $
117,734
LTV distribution—U.S. portfolio(1)
December 31, 2023
In millions of dollars
Less than
or equal
to 80%
> 80% but less
than or equal
to 100%
Greater
than
100%
LTV not
available(1)
Total
Residential first mortgages
2023
$
13,907 $
3,769 $
3
2022
17,736
3,900
52
2021
18,795
728
33
2020
16,094
306
1
2019
8,198
191
26
Prior
23,120
191
23
Total residential first mortgages
$
97,850 $
9,085 $
138 $
1,638 $
108,711
Home equity loans (pre-reset)
$
2,964 $
29 $
57
Home equity loans (post-reset)
476
5
12
Total home equity loans
$
3,440 $
34 $
69 $
49 $
3,592
Total
$
101,290 $
9,119 $
207 $
1,687 $
112,303
(1)
Residential first mortgages with no LTV information available include government-guaranteed loans that do not require LTV information for credit risk
assessment and fair value loans.
(2)
Excludes $(224) million of unallocated portfolio-layer cumulative basis adjustments at December 31, 2024.
224
Loan-to-Value (LTV) Ratios—Outside of U.S. Consumer Mortgages
The following tables provide details on the LTV ratios for Citi’s consumer mortgage portfolio outside of the U.S. by year of
origination:
LTV distribution—outside of U.S. portfolio(1)
December 31, 2024
In millions of dollars
Less than
or equal
to 80%
> 80% but less
than or equal
to 100%
Greater
than
100%
LTV not
available
Total
Residential mortgages
2024
$
2,808 $
421 $
—
2023
2,406
654
412
2022
2,579
462
698
2021
2,505
426
657
2020
1,739
326
176
Prior
7,642
148
8
Total
$
19,679 $
2,437 $
1,951 $
389 $
24,456
LTV distribution—outside of U.S. portfolio(1)
December 31, 2023
In millions of dollars
Less than
or equal
to 80%
> 80% but less
than or equal to
100%
Greater
than
100%
LTV not
available
Total
Residential mortgages
2023
$
2,756 $
1,007 $
112
2022
3,229
807
439
2021
3,257
754
382
2020
2,286
454
62
2019
2,525
84
2
Prior
8,000
84
3
Total
$
22,053 $
3,190 $
1,000 $
183 $
26,426
(1)
Mortgage portfolios outside of the U.S. are primarily in Wealth. As of December 31, 2024 and 2023, mortgage portfolios outside of the U.S. had an average LTV
of approximately 58% and 55%, respectively.
225
Consumer Loans and Ratios Outside of North America
Delinquency-managed loans and ratios
In millions of dollars at December 31, 2024
Total
loans outside
of North
America(1)
Classifiably
managed
loans(2)
Delinquency-
managed
loans
30–89
days past
due ratio
≥ 90 days
past
due ratio
4Q24 NCL
ratio
Residential mortgages(3)
$
24,456 $
— $
24,456
0.16 %
0.25 %
0.06 %
Credit cards
12,927
—
12,927
1.47
1.66
4.91
Personal, small business and other(4)
33,995
17,553
16,442
0.61
0.22
1.02
Total
$
71,378 $
17,553 $
53,825
0.61 %
0.58 %
1.39 %
Delinquency-managed loans and ratios
In millions of dollars at December 31, 2023
Total
loans outside
of North
America(1)
Classifiably
managed
loans(2)
Delinquency-
managed
loans
30–89
days past
due ratio
≥ 90 days
past
due ratio
4Q23 NCL
ratio
Residential mortgages(3)
$
26,426 $
— $
26,426
0.18 %
0.26 %
0.06 %
Credit cards
14,233
—
14,233
1.47
1.59
5.87
Personal, small business and other(4)
35,380
17,007
18,373
0.58
0.22
1.03
Total
$
76,039 $
17,007 $
59,032
0.62 %
0.57 %
1.58 %
(1)
Mexico is included in offices outside of North America.
(2)
Classifiably managed loans are primarily evaluated for credit risk based on their internal risk classification. As of December 31, 2024 and 2023, approximately
56% and 74% of these loans, respectively, were rated investment grade.
(3)
Includes $19.1 billion and $19.9 billion as of December 31, 2024 and 2023, respectively, of residential mortgages related to Wealth.
(4)
Includes $25.4 billion and $24.9 billion as of December 31, 2024 and 2023, respectively, of loans related to Wealth.
Consumer Loan Modifications to Borrowers Experiencing
Financial Difficulty
Citi’s significant consumer modification programs are
described below.
Credit Cards
Citi seeks to assist credit card borrowers who are experiencing
financial difficulty by offering long-term loan modification
programs. These modifications generally involve reducing the
interest rate on the credit card, placing the customer on a fixed
payment plan not to exceed 60 months and canceling the
customer’s available line of credit. Citi also grants
modifications to credit card borrowers working with third-
party renegotiation agencies that seek to restructure
customers’ entire unsecured debt. In certain situations, Citi
may forgive a portion of an outstanding balance if the
borrower pays a required amount.
Residential Mortgages
Citi utilizes a third-party subservicer for the servicing of its
residential mortgage loans. Through this third-party
subservicer, Citi seeks to assist residential mortgage borrowers
who are experiencing financial difficulty primarily by offering
interest rate reductions, principal and/or interest forbearance,
term extensions or combinations thereof. Borrowers enrolled
in forbearance programs typically have payments suspended
until the end of the forbearance period. In the U.S., before
permanently modifying the contractual payment terms of a
mortgage loan, Citi enters into a trial modification with the
borrower, generally a three-month period during which the
borrower makes monthly payments under the anticipated
modified payment terms. Upon successful completion of the
trial period, and the borrower’s formal acceptance of the
modified terms, Citi and the borrower enter into a permanent
modification. Citi expects the majority of loans entering trial
modifications to ultimately be enrolled in a permanent
modification. During the years ended December 31, 2024 and
2023, $33 million and $21 million of mortgage loans,
respectively, were enrolled in trial programs. Mortgage loans
of $9 million and $7 million had gone through Chapter 7
bankruptcy during the years ended December 31, 2024 and
2023, respectively.
226
Types of Consumer Loan Modifications and Their Financial Effect
The following tables provide details on permanent consumer loan modifications granted during the years ended December 31, 2024
and 2023 to borrowers experiencing financial difficulty by type of modification granted and the financial effect of those modifications:
For the year ended December 31, 2024
In millions of dollars, except weighted averages
Modifications
as % of loans
Total
modifications
balance at
December 31,
2024(1)(2)(3)
Interest
rate
reduction
Term
extension
Payment
delay
Combination:
interest rate
reduction and
term
extension
Combination:
term
extension and
payment
delay
Weighted-
average
interest rate
reduction %
Weighted-
average
term
extension
(months)
Weighted-
average
delay in
payments
(months)
In North America offices(4)
Residential first mortgages(5)
0.09 % $
99 $
1 $
52 $
36 $
10 $
—
1 %
165
8
Home equity loans
0.10
3
—
—
2
1
—
2
163
10
Credit cards
0.84
1,432 1,430
—
2
—
—
24
—
4
Personal, small business and other
0.08
25
1
—
1
23
—
8
18
7
Total
0.48 % $
1,559 $ 1,432 $
52 $
41 $
34 $
—
In offices outside North America(4)
Residential mortgages
0.15 % $
37 $
— $
— $
34 $
3 $
—
2 %
189
12
Credit cards
0.13
17
17
—
—
—
—
23
—
—
Personal, small business and other
0.09
30
6
5
—
19
—
7
25
—
Total
0.12 % $
84 $
23 $
5 $
34 $
22 $
—
For the year ended December 31, 2023
In millions of dollars, except weighted averages
Modifications
as % of loans
Total
modifications
balance at
December 31,
2023(1)(2)(3)
Interest
rate
reduction
Term
extension
Payment
delay
Combination:
interest rate
reduction and
term extension
Combination:
term extension
and payment
delay
Weighted-
average
interest rate
reduction %
Weighted-
average
term
extension
(months)
Weighted-
average
delay in
payments
(months)
In North America offices(4)
Residential first mortgages(5)
0.15 % $
164 $
3 $
63 $
89 $
9 $
—
1 %
202
9
Home equity loans
0.58
21
—
—
9
12
—
2
121
9
Credit cards
0.63
1,039 1,039
—
—
—
—
23
—
—
Personal, small business and other
0.04
14
2
—
—
12
—
6
15
—
Total
0.40 % $
1,238 $ 1,044 $
63 $
98 $
33 $
—
In offices outside North America(4)
Residential mortgages
1.26 % $
334 $
— $
— $
33 $
2 $
299
2 %
4
4
Credit cards
0.30
43
42
—
—
1
—
18
37
—
Personal, small business and other
0.08
27
5
7
—
15
—
7
19
—
Total
0.53 % $
404 $
47 $
7 $
33 $
18 $
299
(1)
The above table reflects activity for loans outstanding as of the end of the reporting period. During the years ended December 31, 2024 and 2023, Citi granted
forgiveness of $1 million and less than $1 million in residential first mortgage loans, $81 million and $50 million in credit card loans and $3 million and
$2 million in personal, small business and other loans, respectively. As a result, there were no outstanding balances as of December 31, 2024 and 2023.
(2)
Commitments to lend to borrowers experiencing financial difficulty that were granted modifications included in the table above were immaterial at December 31,
2024 and 2023.
(3)
For major consumer portfolios, the ACLL is based on macroeconomic-sensitive models that rely on historical performance and macroeconomic scenarios to
forecast expected credit losses. Modifications of consumer loans impact expected credit losses by affecting the likelihood of default.
(4)
North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America.
(5)
Excludes residential first mortgages discharged in Chapter 7 bankruptcy in the years ended December 31, 2024 and 2023.
227
Performance of Modified Consumer Loans
The following tables present the delinquencies and gross credit losses of permanently modified consumer loans to borrowers
experiencing financial difficulty, including loans that were modified during the years ended December 31, 2024 and 2023:
As of December 31, 2024
In millions of dollars
Total
Current
30–89 days
past due
90+ days
past due
Gross
credit losses
In North America offices(1)
Residential first mortgages
$
99 $
40 $
19 $
40 $
—
Home equity loans
3
1
—
2
—
Credit cards
1,432
1,081
211
140
291
Personal, small business and other
25
22
2
1
2
Total(2)(3)
$
1,559 $
1,144 $
232 $
183 $
293
In offices outside North America(1)
Residential mortgages
$
37 $
34 $
2 $
1 $
—
Credit cards
17
16
1
—
—
Personal, small business and other
30
24
4
2
1
Total(2)(3)
$
84 $
74 $
7 $
3 $
1
As of December 31, 2023
In millions of dollars
Total
Current
30–89 days
past due
90+ days
past due
Gross
credit losses
In North America offices(1)
Residential first mortgages
$
164 $
70 $
22 $
72 $
—
Home equity loans
21
14
1
6
—
Credit cards
1,039
740
179
120
204
Personal, small business and other
14
12
1
1
1
Total(2)(3)
$
1,238 $
836 $
203 $
199 $
205
In offices outside North America(1)
Residential mortgages
$
334 $
331 $
2 $
1 $
—
Credit cards
43
37
3
3
4
Personal, small business and other
27
24
3
—
1
Total(2)(3)
$
404 $
392 $
8 $
4 $
5
(1)
North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America.
(2)
Typically, upon modification a loan re-ages to current. However, FFIEC guidelines for re-aging certain loans require that at least three consecutive minimum
monthly payments, or the equivalent amount, be received. In these cases, the loan will remain delinquent until the payment criteria for re-aging have been
satisfied.
(3)
Loans modified under Citi’s COVID-19 consumer relief programs continue to be reported in the same delinquency bucket they were in at the time of
modification.
228
Defaults of Modified Consumer Loans
The following tables present default activity for permanently modified consumer loans to borrowers experiencing financial difficulty
by type of modification granted, including loans that were modified and subsequently defaulted during the years ended December 31,
2024 and 2023. Default is defined as 60 days past due:
For the year ended December 31, 2024
In millions of dollars
Total(1)(2)
Interest
rate
reduction
Term
extension
Payment
delay
Combination:
interest rate
reduction and
term extension
Combination:
term extension
and payment
delay
Combination:
interest rate
reduction, term
extension and
payment delay
In North America offices(3)
Residential first mortgages
$
31 $
— $
28 $
— $
3 $
— $
—
Home equity loans
—
—
—
—
—
—
—
Credit cards(4)
211
211
—
—
—
—
—
Personal, small business and other
1
—
—
—
1
—
—
Total
$
243 $
211 $
28 $
— $
4 $
— $
—
In offices outside North America(3)
Residential mortgages
$
4 $
— $
— $
4 $
— $
— $
—
Credit cards(4)
1
1
—
—
—
—
—
Personal, small business and other
5
—
—
—
5
—
—
Total
$
10 $
1 $
— $
4 $
5 $
— $
—
For the year ended December 31, 2023
In millions of dollars
Total(1)(2)
Interest rate
reduction
Term
extension
Payment
delay
Combination:
interest rate
reduction and
term extension
Combination:
term extension
and payment
delay
Combination:
interest rate
reduction, term
extension and
payment delay
In North America offices(3)
Residential first mortgages
$
12 $
1 $
10 $
1 $
— $
— $
—
Home equity loans
—
—
—
—
—
—
—
Credit cards(4)
134
134
—
—
—
—
—
Personal, small business and other
1
—
—
—
1
—
—
Total
$
147 $
135 $
10 $
1 $
1 $
— $
—
In offices outside North America(3)
Residential mortgages
$
3 $
— $
— $
3 $
— $
— $
—
Credit cards(4)
5
5
—
—
—
—
—
Personal, small business and other
3
—
—
—
3
—
—
Total
$
11 $
5 $
— $
3 $
3 $
— $
—
(1)
The above tables reflect activity for loans outstanding as of the end of the reporting period.
(2)
Modified residential first mortgages that default are typically liquidated through foreclosure or a similar type of liquidation.
(3)
North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America.
(4)
Modified credit card loans that default continue to be charged off in accordance with Citi’s consumer charge-off policy.
229
16. ALLOWANCE FOR CREDIT LOSSES
In millions of dollars
2024
2023
2022
Allowance for credit losses on loans (ACLL) at beginning of year
$
18,145 $
16,974 $
16,455
Adjustments to opening balance(1)
Financial instruments—TDRs and vintage disclosures(1)
—
(352)
—
Adjusted ACLL at beginning of year
$
18,145 $
16,622 $
16,455
Gross credit losses on loans
$
(10,694) $
(7,881) $
(5,156)
Gross recoveries on loans
1,694
1,444
1,367
Net credit losses on loans (NCLs)
$
(9,000) $
(6,437) $
(3,789)
Replenishment of NCLs
$
9,000 $
6,437 $
3,789
Net reserve builds (releases) for loans
791
1,272
937
Net specific reserve builds (releases) for loans
(65)
77
19
Total provision for credit losses on loans (PCLL)
$
9,726 $
7,786 $
4,745
Initial allowance for credit losses on newly purchased credit-deteriorated assets
during the period(2)
23
—
—
Other, net (see table below)
(320)
174
(437)
ACLL at end of year
$
18,574 $
18,145 $
16,974
Allowance for credit losses on unfunded lending commitments (ACLUC)
at beginning of year(3)
$
1,728 $
2,151 $
1,871
Provision (release) for credit losses on unfunded lending commitments
(119)
(425)
291
Other, net
(8)
2
(11)
ACLUC at end of year(3)
$
1,601 $
1,728 $
2,151
Total allowance for credit losses on loans, leases and unfunded lending commitments
$
20,175 $
19,873 $
19,125
Other, net details
In millions of dollars
2024
2023
2022
Sales or transfers of various consumer loan portfolios to HFS(4)
Reclass of Thailand, India, Malaysia, Taiwan, Indonesia, Bahrain and Vietnam consumer
ACLL to HFS
$
— $
— $
(350)
Reclasses of consumer ACLL to HFS(4)
$
— $
— $
(350)
FX translation and other
(320)
174
(87)
Other, net
$
(320) $
174 $
(437)
(1)
See “Accounting Changes” in Note 1.
(2)
Upon acquisition, the par value of the purchased credit-deteriorated assets was approximately $52 million and $26 million during the years ended December 31,
2024 and 2023, respectively.
(3)
Represents additional credit loss reserves for unfunded lending commitments and letters of credit recorded in Other liabilities on the Consolidated Balance Sheet.
(4)
See Note 2.
230
Allowance for Credit Losses on Loans and End-of-Period Loans at December 31, 2024
In millions of dollars
Corporate
Consumer
Total
ACLL at beginning of year
$
2,714 $
15,431 $
18,145
Charge-offs
(493)
(10,201)
(10,694)
Recoveries
96
1,598
1,694
Replenishment of NCLs
397
8,603
9,000
Net reserve builds (releases)
(67)
858
791
Net specific reserve builds (releases)
(63)
(2)
(65)
Initial allowance for credit losses on newly purchased credit-deteriorated assets
during the year(1)
—
23
23
Other
(28)
(292)
(320)
Ending balance
$
2,556 $
16,018 $
18,574
ACLL
Collectively evaluated(2)
$
2,254 $
15,967 $
18,221
Individually evaluated
302
38
340
Purchased credit deteriorated
—
13
13
Total ACLL
$
2,556 $
16,018 $
18,574
Loans, net of unearned income
Collectively evaluated(2)
$
292,250 $
392,562 $
684,812
Individually evaluated
1,377
134
1,511
Purchased credit deteriorated
—
125
125
Held at fair value
7,759
281
8,040
Total loans, net of unearned income
$
301,386 $
393,102 $
694,488
(1)
Upon acquisition, the par value of the purchased credit-deteriorated assets was approximately $52 million and $26 million during the years ended December 31,
2024 and 2023, respectively.
(2)
See “Accounting Changes” in Note 1.
2024 Changes in the ACL
The total allowance for credit losses on loans, leases and
unfunded lending commitments as of December 31, 2024 was
$20,175 million, a slight increase from $19,873 million at
December 31, 2023, primarily reflecting the impact of
macroeconomic pressures related to the elevated inflationary
and interest rate environment and growth in cards balances.
Consumer ACLL
Citi’s total consumer allowance for credit losses on loans
(ACLL) as of December 31, 2024 was $16,018 million, an
increase from $15,431 million at December 31, 2023. The
increase was primarily driven by the impact of
macroeconomic pressures related to the elevated inflationary
and interest rate environment, as well as cards loan growth.
Corporate ACLL
Citi’s total corporate ACLL as of December 31, 2024 was
$2,556 million, a decrease from $2,714 million at
December 31, 2023. The decrease was primarily driven by
releases for (i) specific risks and uncertainties impacting
vulnerable industries and regions, and (ii) transfer risk
associated with exposures outside the U.S., driven by safety
and soundness considerations under U.S. banking law.
ACLUC
As of December 31, 2024, Citi’s total allowance for unfunded
lending commitments (ACLUC), included in Other liabilities,
was $1,601 million, a decrease from $1,728 million at
December 31, 2023. The decrease was primarily driven by
releases for specific risks and uncertainties impacting
vulnerable industries and regions.
231
Allowance for Credit Losses on Loans and End-of-Period Loans at December 31, 2023
In millions of dollars
Corporate
Consumer
Total
ACLL at beginning of year
$
2,855 $
14,119 $
16,974
Adjustments to opening balance:
Financial Instruments—TDRs and vintage disclosures(1)
—
(352)
(352)
Adjusted ACLL at beginning of year
$
2,855 $
13,767 $
16,622
Charge-offs
$
(328) $
(7,553) $
(7,881)
Recoveries
78
1,366
1,444
Replenishment of NCLs
250
6,187
6,437
Net reserve builds (releases)
(168)
1,440
1,272
Net specific reserve builds (releases)
39
38
77
Other
(12)
186
174
Ending balance
$
2,714 $
15,431 $
18,145
ACLL
Collectively evaluated(1)
$
2,352 $
15,391 $
17,743
Individually evaluated
362
40
402
Purchased credit deteriorated
—
—
—
Total ACLL
$
2,714 $
15,431 $
18,145
Loans, net of unearned income
Collectively evaluated(1)
$
291,002 $
388,711 $
679,713
Individually evaluated
1,882
58
1,940
Purchased credit deteriorated
—
115
115
Held at fair value
7,281
313
7,594
Total loans, net of unearned income
$
300,165 $
389,197 $
689,362
(1)
See “Accounting Changes” in Note 1.
Allowance for Credit Losses on Loans at December 31, 2022
In millions of dollars
Corporate
Consumer
Total
ACLL at beginning of year
$
2,415 $
14,040 $
16,455
Charge-offs
(278)
(4,878)
(5,156)
Recoveries
100
1,267
1,367
Replenishment of NCLs
178
3,611
3,789
Net reserve builds (releases)
374
563
937
Net specific reserve builds (releases)
65
(46)
19
Other
1
(438)
(437)
Ending balance
$
2,855 $
14,119 $
16,974
Allowance for Credit Losses on HTM Debt Securities
The allowance for credit losses on HTM debt securities, which
the Company has the intent and ability to hold, was
$137 million, $95 million and $120 million as of
December 31, 2024, 2023 and 2022, respectively.
For ACL on AFS debt securities, see Note 14.
232
Allowance for Credit Losses on Other Assets
Year ended December 31, 2024
In millions of dollars
Deposits
with banks
Securities borrowed
and purchased
under agreements
to resell
All other
assets(1)
Total
Allowance for credit losses on other assets at beginning of year
$
31 $
27 $
1,730 $
1,788
Gross credit losses
—
—
(53)
(53)
Gross recoveries
—
—
27
27
Net credit losses (NCLs)
$
— $
— $
(26) $
(26)
Replenishment of NCLs
$
— $
— $
26 $
26
Net reserve builds (releases)
(7)
(23)
366
336
Total provision for credit losses
$
(7) $
(23) $
392 $
362
Other, net
$
1 $
(1) $
(259) $
(259)
Allowance for credit losses on other assets at end of year
$
25 $
3 $
1,837 $
1,865
(1)
Primarily ACL related to transfer risk associated with exposures outside the U.S., driven by safety and soundness considerations under U.S. banking law.
Year ended December 31, 2023
In millions of dollars
Deposits
with banks
Securities borrowed
and purchased under
agreements
to resell
All other
assets(1)
Total
Allowance for credit losses on other assets at beginning of year
$
51 $
36 $
36 $
123
Gross credit losses
—
—
(97)
(97)
Gross recoveries
—
—
25
25
Net credit losses (NCLs)
$
— $
— $
(72) $
(72)
Replenishment of NCLs
$
— $
— $
72 $
72
Net reserve builds (releases)
(19)
14
1,695
1,690
Total provision for credit losses
$
(19) $
14 $
1,767 $
1,762
Other, net
$
(1) $
(23) $
(1) $
(25)
Allowance for credit losses on other assets at end of year
$
31 $
27 $
1,730 $
1,788
(1)
Primarily ACL related to transfer risk associated with exposures outside the U.S., driven by safety and soundness considerations under U.S. banking law.
Year ended December 31, 2022
In millions of dollars
Deposits
with banks
Securities borrowed
and purchased under
agreements
to resell
All other
assets(1)
Total
Allowance for credit losses on other assets at beginning of year
$
21 $
6 $
26 $
53
Gross credit losses
—
—
(24)
(24)
Gross recoveries
—
—
3
3
Net credit losses (NCLs)
$
— $
— $
(21) $
(21)
Replenishment of NCLs
$
— $
— $
21 $
21
Net reserve builds (releases)
30
14
11
55
Total provision for credit losses
$
30 $
14 $
32 $
76
Other, net(2)
$
— $
16 $
(1) $
15
Allowance for credit losses on other assets at end of year
$
51 $
36 $
36 $
123
(1)
Primarily accounts receivable.
(2)
Includes $30 million of ACL transferred from Services, Markets and Banking loans ACL during the second quarter of 2022 for securities borrowed and purchased
under agreements to resell.
233
17. GOODWILL AND INTANGIBLE ASSETS
Goodwill
The changes in Goodwill were as follows:
In millions of dollars
Services
Markets(1)
Banking(1)
USPB
Wealth
All Other
Total
Balance at December 31, 2021
$
2,105 $
6,078 $
1,032 $
5,223 $
4,494 $
2,367 $
21,299
Foreign currency translation
62
(293)
2
50
(26)
5
(200)
Divestitures(2)
—
—
—
—
—
(873)
(873)
Impairment of goodwill(3)
—
—
—
—
—
(535)
(535)
Balance at December 31, 2022
$
2,167 $
5,785 $
1,034 $
5,273 $
4,468 $
964 $
19,691
Foreign currency translation
47
85
5
125
1
144
407
Balance at December 31, 2023
$
2,214 $
5,870 $
1,039 $
5,398 $
4,469 $
1,108 $
20,098
Foreign currency translation
(162)
(196)
(37)
(179)
(2)
(206)
(782)
Divestitures(4)
—
—
—
—
(16)
—
(16)
Balance at December 31, 2024
$
2,052 $
5,674 $
1,002 $
5,219 $
4,451 $
902 $
19,300
(1)
In 2023, goodwill of approximately $537 million was transferred from Banking to Markets related to business realignment. Prior-period amounts have been
revised to conform with the current presentation. See Note 3.
(2)
Represents goodwill allocated to the Asia Consumer banking exit markets upon the signing of the respective sales agreements: in 2021, related to the Australia
and Philippines consumer banking businesses, which were reclassified as HFS during 2021; in 2022, related to the India, Taiwan, Thailand, Malaysia, Indonesia,
Bahrain and Vietnam consumer banking businesses, which were reclassified as HFS during 2022. See Note 2.
(3)
Goodwill impairment of $535 million (approximately $489 million after-tax) was incurred in the Asia Consumer reporting unit of Legacy Franchises in the first
quarter of 2022, due to the resegmentation and change of reporting units as well as the sequence of the signing of sale agreements.
(4)
Goodwill allocated to the global fiduciary and trust administration services business was classified as HFS during the third quarter of 2024.
Citi performed its annual goodwill impairment test, which
resulted in no impairment of any of Citi’s reporting units’
goodwill. No additional triggering events were identified
during the fourth quarter of 2024 and no goodwill was
impaired during 2024.
Unanticipated declines in business performance, increases
in credit losses, increases in capital requirements and adverse
regulatory or legislative changes, as well as deterioration in
economic or market conditions, are factors that could result in
a material impairment loss to earnings in a future period
related to some portion of the associated goodwill.
For additional information regarding Citi’s goodwill
impairment testing process, see Note 1 for Citi’s accounting
policy for goodwill and Note 3 for a description of Citi’s
operating segments.
234
Intangible Assets
The components of intangible assets were as follows:
December 31, 2024
December 31, 2023
In millions of dollars
Gross
carrying
amount
Accumulated
amortization
Net
carrying
amount
Gross
carrying
amount
Accumulated
amortization
Net
carrying
amount
Purchased credit card relationships(1)
$
5,315 $
4,507 $
808 $
5,302 $
4,365 $
937
Credit card contract-related intangibles(2)
4,586
1,905
2,681
4,177
1,698
2,479
Other customer relationships
325
278
47
363
290
73
Present value of future profits
31
30
1
37
36
1
Indefinite-lived intangible assets
197
—
197
240
—
240
Intangible assets (excluding MSRs)
$
10,454 $
6,720 $
3,734 $
10,119 $
6,389 $
3,730
Mortgage servicing rights (MSRs)(3)
760
—
760
691
—
691
Total intangible assets
$
11,214 $
6,720 $
4,494 $
10,810 $
6,389 $
4,421
The changes in intangible assets were as follows:
Net carrying
amount at
Acquisitions/
renewals/
divestitures
Net carrying
amount at
In millions of dollars
December 31,
2023
Amortization
Impairments
FX translation
and other
December 31,
2024
Purchased credit card relationships(1)
$
937 $
13 $
(142) $
— $
— $
808
Credit card contract-related intangibles(2)
2,479
414
(208)
(4)
—
2,681
Other customer relationships
73
—
(21)
—
(5)
47
Present value of future profits
1
—
—
—
—
1
Indefinite-lived intangible assets
240
—
—
—
(43)
197
Intangible assets (excluding MSRs)
$
3,730 $
427 $
(371) $
(4) $
(48) $
3,734
Mortgage servicing rights (MSRs)(3)
691
760
Total intangible assets
$
4,421
$
4,494
(1)
Reflects intangibles for the value of purchased credit card relationships (PCCR), which are discrete from contract-related intangibles. Additional PCCR during the
year relates to a new card partnership with a 10-year term.
(2)
Reflects contract-related intangibles (CI) associated with a new card partnership or extension of Citi’s existing credit card program agreements with partners.
Additional CI during the year primarily relates to an extension of an existing card partnership. The weighted-average amortization period of the additional CI
recognized during the year is approximately 20 years.
(3)
See Notes 23 and 26.
Intangible assets amortization expense was $371 million,
$370 million and $352 million for 2024, 2023 and 2022,
respectively. Intangible assets amortization expense is
estimated to be $243 million in 2025, $233 million in 2026,
$225 million in 2027, $213 million in 2028 and $182 million
in 2029.
235
18. DEPOSITS
Deposits consisted of the following:
December 31,
In millions of dollars
2024
2023
Non-interest-bearing deposits in U.S. offices
$
123,338 $
112,089
Interest-bearing deposits in U.S. offices (including $1,262 and $1,309 as of December 31, 2024 and 2023,
respectively, at fair value)
551,547
576,784
Total deposits in U.S. offices(1)
$
674,885 $
688,873
Non-interest-bearing deposits in offices outside the U.S. (including $383 and $0 as of December 31, 2024
and 2023, respectively, at fair value)
$
84,349 $
88,988
Interest-bearing deposits in offices outside the U.S. (including $1,963 and $1,131 as of December 31,
2024 and 2023, respectively, at fair value)
525,224
530,820
Total deposits in offices outside the U.S.(1)
$
609,573 $
619,808
Total deposits
$
1,284,458 $
1,308,681
At December 31, 2024 and 2023, time deposits in denominations that met or exceeded the insured limit were as follows:
December 31,
In millions of dollars
2024
2023
U.S. offices(1)(2)
$
41,153 $
67,471
Offices outside the U.S.(1)(3)(4)
146,109
155,973
Total
$
187,262 $
223,444
(1)
The classification between offices in the U.S. and outside the U.S. is based on the domicile of the booking unit, rather than the domicile of the depositor.
(2)
Represents time deposits in U.S. offices in denominations that met or exceeded $250,000.
(3)
Time deposits in offices outside the U.S. are assumed to be a depositor’s account as single account ownership.
(4)
The insurance coverage is applied in sequence of checking, savings and short- and long-term time deposits accounts.
At December 31, 2024, the maturities of time deposits were as follows:
In millions of dollars
U.S.
Outside U.S.
Total
2025
$
79,765 $
152,771 $
232,536
2026
1,834
950
2,784
2027
205
196
401
2028
219
20
239
2029
181
30
211
After 5 years
125
4
129
Total
$
82,329 $
153,971 $
236,300
FDIC Special Assessment
Citi recorded $203 million and $1,706 million in Other
operating expenses for the years ended 2024 and 2023,
respectively, related to the FDIC’s final rule implementing a
special assessment to recover the uninsured deposit losses
from the failures of Silicon Valley Bank and Signature Bank.
The special assessment expenses are reflected in Corporate/
Other in All Other.
236
19. DEBT
Short-Term Borrowings
December 31,
2024
2023
In millions of dollars
Balance
Weighted-
average
coupon(1)
Balance
Weighted-
average
coupon(1)
Commercial paper
Bank(2)
$ 15,127
$ 11,116
Broker-dealer and
other(3)
13,789
9,106
Total commercial
paper
$ 28,916
4.85 % $ 20,222
5.72 %
Other borrowings(4)
19,589
4.67
17,235
5.45
Total
$ 48,505
$ 37,457
(1)
The weighted-average coupon excludes structured notes accounted for at
fair value and the effect of hedges.
(2)
Represents Citibank entities as well as other bank entities.
(3)
Represents broker-dealer and other non-bank subsidiaries that are
consolidated into Citigroup Inc., the parent holding company.
(4)
Includes borrowings from Federal Home Loan Banks and other market
participants. At December 31, 2024 and 2023, collateralized short-term
advances from Federal Home Loan Banks were $5.0 billion and $8.0
billion, respectively.
Some of Citigroup’s non-bank subsidiaries have credit
facilities with Citigroup’s subsidiary depository institutions,
including Citibank. Borrowings under these facilities are
secured in accordance with Section 23A of the Federal
Reserve Act.
Long-Term Debt
Balances at
December 31,
In millions of dollars
Weighted-
average
coupon(1)
Maturities
2024
2023
Citigroup Inc.(2)
Senior debt
3.66 % 2025–2098 $ 133,519 $ 135,579
Subordinated debt(3)
5.13
2025–2046
28,883 25,116
Trust preferred
securities
10.93
2036–2040
1,622
1,614
Bank(4)
Senior debt
5.11
2025–2039
35,470 31,673
Broker-dealer(5)
Senior debt
4.55
2025–2070
87,806 92,637
Total
4.26 %
$ 287,300 $ 286,619
Senior debt
$ 256,795 $ 259,889
Subordinated debt(3)
28,883 25,116
Trust preferred
securities
1,622
1,614
Total
$ 287,300 $ 286,619
(1)
The weighted-average coupon excludes structured notes accounted for at
fair value and the effect of hedges.
(2)
Represents the parent holding company.
(3)
Includes notes that are subordinated within certain countries, regions or
subsidiaries.
(4)
Represents Citibank entities as well as other bank entities. At
December 31, 2024 and 2023, collateralized long-term advances from
the Federal Home Loan Banks were $8.5 billion and $11.5 billion,
respectively.
(5)
Represents broker-dealer and other non-bank subsidiaries that are
consolidated into Citigroup Inc., the parent holding company. Certain
Citigroup consolidated hedging activities are also included in this line.
Balances primarily relate to senior debt.
The Company issues both fixed- and variable-rate debt in
a range of currencies. It uses derivative contracts, primarily
interest rate swaps, to effectively convert a portion of its fixed-
rate debt to variable-rate debt. In addition, the Company uses
other derivative contracts to manage the foreign exchange
impact of certain debt issuances. At December 31, 2024, the
Company’s overall weighted-average interest rate for long-
term debt, excluding structured notes accounted for at fair
value, was 4.26% on a contractual basis and 4.40% including
the effects of derivative contracts.
237
Aggregate annual maturities of long-term debt obligations (based on final maturity dates) including trust preferred securities are as
follows:
In millions of dollars
2025
2026
2027
2028
2029
Thereafter
Total
Citigroup Inc.
$
10,563 $
28,503 $
13,228 $
19,917 $
5,563 $
86,250 $
164,024
Bank
9,999
10,723
5,318
2,576
3,391
3,463
35,470
Broker-dealer
21,313
11,643
11,777
6,763
8,868
27,442
87,806
Total
$
41,875 $
50,869 $
30,323 $
29,256 $
17,822 $
117,155 $
287,300
The following table summarizes Citi’s outstanding trust preferred securities at December 31, 2024:
Junior subordinated debentures owned by trust
Trust
Issuance
date
Securities
issued
Liquidation
value(1)
Coupon
rate(2)
Common
shares
issued
to parent
Notional
amount
Maturity
Redeemable
by issuer
beginning
In millions of dollars, except securities and share amounts
Citigroup Capital III
Dec. 1996
194,053 $
194
7.625 %
6,003 $
200
Dec. 1, 2036
Not redeemable
Citigroup Capital XIII
Oct. 2010 89,840,000
2,246
3 mo. SOFR
+663.161 bps(3)
1,000
2,246
Oct. 30, 2040
Oct. 30, 2015
Total obligated
$
2,440
$
2,446
Note: Distributions on the trust preferred securities and interest on the subordinated debentures are payable semiannually for Citigroup Capital III and quarterly for
Citigroup Capital XIII.
(1)
Represents the notional value received by outside investors from the trusts at the time of issuance. This differs from Citi’s balance sheet carrying value due
primarily to unamortized discount and issuance costs.
(2)
In each case, the coupon rate on the subordinated debentures is the same as that on the trust preferred securities.
(3)
The spread incorporates the original contractual spread and a 26.161 bps tenor spread adjustment.
238
20. REGULATORY CAPITAL
Citigroup is subject to risk-based capital and leverage
standards issued by the Federal Reserve Board, which
constitute the U.S. Basel III rules. Citi’s U.S.-insured
depository institution subsidiaries, including Citibank, are
subject to similar standards issued by their respective primary
bank regulatory agencies. These standards are used to evaluate
capital adequacy and include the required minimums
presented in the following table. The regulatory agencies are
required by law to take specific, prompt corrective actions
with respect to institutions that do not meet minimum capital
standards.
The following table presents for Citigroup and Citibank
the regulatory capital tiers, total risk-weighted assets, quarterly
adjusted average total assets, Total Leverage Exposure, risk-
based capital ratios and leverage ratios:
In millions of dollars, except ratios
Stated
minimum
Citigroup
Citibank
Well-
capitalized
minimum
December 31,
2024
December 31,
2023
Well-
capitalized
minimum
December 31,
2024
December 31,
2023
CET1 Capital
$
155,363
$
153,595
$
153,483
$
147,109
Tier 1 Capital
174,527
172,504
155,613
149,238
Total Capital (Tier 1 Capital + Tier 2
Capital)—Standardized Approach
205,827
201,768
173,060
168,571
Total Capital (Tier 1 Capital + Tier 2
Capital)—Advanced Approaches
197,371
191,919
165,581
160,706
Total risk-weighted assets—Standardized
Approach
1,139,988
1,148,608
998,817
983,960
Total risk-weighted assets—Advanced
Approaches
1,280,190
1,268,723
1,109,387
1,057,194
Quarterly adjusted average total assets(1)
2,433,364
2,394,272
1,726,312
1,666,609
Total Leverage Exposure(2)
2,985,418
2,964,954
2,195,386
2,166,334
CET1 Capital ratio(3)
4.5 %
N/A
13.63 %
13.37 %
6.5 %
13.83 %
13.92 %
Tier 1 Capital ratio(3)
6.0
6.0 %
15.31
15.02
8.0
14.03
14.12
Total Capital ratio(3)
8.0
10.0
15.42
15.13
10.0
14.93
15.20
Leverage ratio
4.0
N/A
7.17
7.20
5.0
9.01
8.95
Supplementary Leverage ratio
3.0
N/A
5.85
5.82
6.0
7.09
6.89
(1)
Leverage ratio denominator.
(2)
Supplementary Leverage ratio denominator.
(3)
Citi’s binding CET1 Capital and Tier 1 Capital ratios were derived under the Basel III Standardized Approach, whereas Citi’s binding Total Capital ratio was
derived under the Basel III Advanced Approaches framework for both periods presented. Citibank’s binding CET1 Capital, Tier 1 Capital and Total Capital ratios
were derived under the Basel III Advanced Approaches framework for both periods presented.
N/A Not applicable
As indicated in the table above, Citigroup and Citibank
were “well capitalized” under the current federal bank
regulatory agencies definitions as of December 31, 2024 and
2023.
Banking Subsidiaries—Constraints on Dividends
There are various legal limitations on the ability of Citigroup’s
subsidiary depository institutions to extend credit, pay
dividends or otherwise supply funds to Citigroup and its non-
bank subsidiaries. The approval of the Office of the
Comptroller of the Currency is required if total dividends
declared in any calendar year were to exceed amounts
specified by the agency’s regulations.
In determining the dividends, each subsidiary depository
institution must also consider its effect on applicable risk-
based capital and leverage ratio requirements, as well as policy
statements of the federal bank regulatory agencies that indicate
that banking organizations should generally pay dividends out
of current operating earnings. Citigroup received $5.5 billion
and $16.3 billion in dividends indirectly from Citibank
through its holding company during 2024 and 2023,
respectively.
239
21. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI)
Changes in each component of Citigroup’s Accumulated other comprehensive income (loss) were as follows:
In millions of dollars
Net
unrealized
gains (losses)
on debt
securities
Debt
valuation
adjustment
(DVA)(1)
Cash
flow
hedges(2)
Benefit
plans(3)
CTA, net of
hedges(4)(5)
Excluded
component
of fair
value
hedges
Long-
duration
insurance
contracts(6)
Accumulated
other
comprehensive
income (loss)
Balance, December 31, 2021
$
(614) $
(1,187) $
101 $
(5,852) $
(31,166) $
(47) $
— $
(38,765)
Other comprehensive income
before reclassifications
(5,599)
2,047
(2,718)
(19)
(2,855)
49
—
(9,095)
Increase (decrease) due to
amounts reclassified from AOCI
215
(18)
95
116
384
6
—
798
Change, net of taxes
$
(5,384) $
2,029 $ (2,623) $
97 $
(2,471) $
55 $
— $
(8,297)
Balance, December 31, 2022
$
(5,998) $
842 $ (2,522) $
(5,755) $
(33,637) $
8 $
— $
(47,062)
Adjustment to opening balance,
net of taxes(7)
—
—
—
—
—
—
27
27
Adjusted balance, beginning of
period
$
(5,998) $
842 $ (2,522) $
(5,755) $
(33,637) $
8 $
27 $
(47,035)
Other comprehensive income
before reclassifications
2,266
(1,553)
(327)
(416)
752
(16)
7
713
Increase (decrease) due to
amounts reclassified from AOCI
(12)
2
1,443
121
—
(32)
—
1,522
Change, net of taxes
$
2,254 $
(1,551) $
1,116 $
(295) $
752 $
(48) $
7 $
2,235
Balance, December 31, 2023
$
(3,744) $
(709) $ (1,406) $
(6,050) $
(32,885) $
(40) $
34 $
(44,800)
Other comprehensive income
before reclassifications
913
(429)
405
242
(5,162)
2
19
(4,010)
Increase (decrease) due to
amounts reclassified from AOCI
(6)
17
781
181
—
(14)
(1)
958
Change, net of taxes
$
907 $
(412) $
1,186 $
423 $
(5,162) $
(12) $
18 $
(3,052)
Balance, December 31, 2024
$
(2,837) $
(1,121) $
(220) $
(5,627) $
(38,047) $
(52) $
52 $
(47,852)
(1)
Reflects the after-tax valuation of Citi’s fair value option liabilities. See “Market Valuation Adjustments” in Note 26.
(2)
Primarily driven by Citi’s pay floating/receive fixed interest rate swap programs that hedge certain floating rates on assets.
(3)
Primarily reflects adjustments based on the quarterly actuarial valuations of the Company’s significant pension and postretirement plans, annual actuarial
valuations of all other plans and amortization of amounts previously recognized in other comprehensive income.
(4)
Primarily reflects the movements in (by order of impact) the Mexican peso, Brazilian real, euro, Egyptian pound, Chilean peso, Japanese yen and South Korean
won against the U.S. dollar and changes in related tax effects and hedges for the year ended December 31, 2024. Primarily reflects the movements in (by order of
impact) the Mexican peso, Polish zloty, euro, Brazilian real, Russian ruble and Japanese yen against the U.S. dollar and changes in related tax effects and hedges
for the year ended December 31, 2023. Primarily reflects the movements in (by order of impact) the Indian rupee, South Korean won, euro, Chinese yuan, Russian
ruble, Japanese yen and British pound sterling against the U.S. dollar and changes in related tax effects and hedges for the year ended December 31, 2022.
Amounts recorded in the CTA component of AOCI remain in AOCI until the sale or substantial liquidation of the foreign entity, at which point such amounts
related to the foreign entity are reclassified into earnings.
(5)
December 31, 2022 reflects a reduction from an approximate $470 million (after-tax) ($620 million pretax) CTA loss (net of hedges) recorded in June 2022,
associated with the closing of Citi’s sale of its consumer banking business in Australia (see Note 2). The reduction from AOCI had a neutral impact on Citi’s
CET1 Capital.
(6)
Reflects the change in the liability for future policyholder benefits for certain long-duration life-contingent annuity contracts that are issued by a regulated Citi
insurance subsidiary in Mexico and reported within Legacy Franchises. The amount reflects the change in the liability after discounting using an upper-medium-
grade fixed income instrument yield that reflects the duration characteristics of the liability. The balance of the liability for future policyholder benefits, which is
recorded within Other liabilities, for this insurance subsidiary was approximately $413 million and $557 million at December 31, 2024 and 2023, respectively.
(7)
See Note 1.
240
The pretax and after-tax changes in each component of Accumulated other comprehensive income (loss) were as follows:
In millions of dollars
Pretax
Tax effect(1)
After-tax
Balance, December 31, 2021
$
(45,383) $
6,618 $
(38,765)
Change in net unrealized gains (losses) on debt securities
(7,178)
1,794
(5,384)
Debt valuation adjustment (DVA)
2,685
(656)
2,029
Cash flow hedges
(3,477)
854
(2,623)
Benefit plans
31
66
97
Foreign currency translation adjustment (CTA)
(2,004)
(467)
(2,471)
Excluded component of fair value hedges
73
(18)
55
Long-duration insurance contracts
—
—
—
Change
$
(9,870) $
1,573 $
(8,297)
Balance, December 31, 2022
$
(55,253) $
8,191 $
(47,062)
Adjustment to opening balance(2)
39
(12)
27
Adjusted balance, beginning of period
$
(55,214) $
8,179 $
(47,035)
Change in net unrealized gains (losses) on debt securities
3,136
(882)
2,254
DVA
(2,078)
527
(1,551)
Cash flow hedges
1,480
(364)
1,116
Benefit plans
(353)
58
(295)
CTA
665
87
752
Excluded component of fair value hedges
(70)
22
(48)
Long-duration insurance contracts
12
(5)
7
Change
$
2,792 $
(557) $
2,235
Balance, December 31, 2023
$
(52,422) $
7,622 $
(44,800)
Change in net unrealized gains (losses) on debt securities
1,160
(253)
907
DVA
(573)
161
(412)
Cash flow hedges
1,570
(384)
1,186
Benefit plans
576
(153)
423
CTA
(4,759)
(403)
(5,162)
Excluded component of fair value hedges
(19)
7
(12)
Long-duration insurance contracts
28
(10)
18
Change
$
(2,017) $
(1,035) $
(3,052)
Balance, December 31, 2024
$
(54,439) $
6,587 $
(47,852)
(1)
Income tax effects of these items are released from AOCI contemporaneously with the related gross pretax amount.
(2)
See Note 1.
241
The Company recognized pretax (gains) losses related to amounts in AOCI reclassified to the Consolidated Statement of Income as
follows:
Increase (decrease) in AOCI due to amounts reclassified to
Consolidated Statement of Income
Year ended December 31,
In millions of dollars
2024
2023
2022
Realized (gains) losses on sales of investments
$
(328) $
(188) $
(67)
Gross impairment losses
323
188
360
Subtotal, pretax
$
(5) $
— $
293
Tax effect
(1)
(12)
(78)
Net realized (gains) losses on investments, after-tax(1)
$
(6) $
(12) $
215
Realized DVA (gains) losses on fair value option liabilities, pretax
$
23 $
3 $
(25)
Tax effect
(6)
(1)
7
Net realized DVA, after-tax
$
17 $
2 $
(18)
Interest rate contracts
$
1,027 $
1,897 $
125
Foreign exchange contracts
3
4
4
Subtotal, pretax
$
1,030 $
1,901 $
129
Tax effect
(249)
(458)
(34)
Amortization of cash flow hedges, after-tax(2)
$
781 $
1,443 $
95
Amortization of unrecognized:
Prior service cost (benefit)
$
(17) $
(22) $
(23)
Net actuarial loss
256
196
221
Curtailment/settlement impact(3)
2
(7)
(37)
Subtotal, pretax
$
241 $
167 $
161
Tax effect
(60)
(46)
(45)
Amortization of benefit plans, after-tax(3)
$
181 $
121 $
116
Excluded component of fair value hedges, pretax
$
(18) $
(43) $
9
Tax effect
4
11
(3)
Excluded component of fair value hedges, after-tax
$
(14) $
(32) $
6
Long-duration contracts, pretax
$
(1) $
— $
—
Tax effect
—
—
—
Long-duration contracts, after-tax
$
(1) $
— $
—
CTA, pretax
$
— $
— $
438
Tax effect
—
—
(54)
CTA, after-tax(4)
$
— $
— $
384
Total amounts reclassified out of AOCI, pretax
$
1,270 $
2,028 $
1,005
Total tax effect
(312)
(506)
(207)
Total amounts reclassified out of AOCI, after-tax
$
958 $
1,522 $
798
(1)
The pretax amount is reclassified to Realized gains (losses) on sales of investments, net and Gross impairment losses in the Consolidated Statement of Income. See
Note 14.
(2)
See Note 24.
(3)
See Note 8.
(4)
The pretax amount is reclassified to Discontinued operations and Other revenue in the Consolidated Statement of Income, and results from the substantial
liquidation of a legacy U.K. consumer operation. See Note 2.
242
22. PREFERRED STOCK
The following table summarizes the Company’s preferred stock outstanding:
Dividend rate
as of
December 31,
2024
Redemption
price per
depositary share/
preference share
Carrying value
(in millions of dollars)
Issuance date
Redeemable by
issuer beginning
Number of
depositary
shares
December 31,
2024
December 31,
2023
Series D(1)
April 30, 2013
May 15, 2023
N/A $
1,000
1,250,000 $
— $
1,250
Series J(2)
September 19, 2013
September 30, 2023
N/A
25 22,000,000
—
550
Series M(3)
April 30, 2014
May 15, 2024
N/A
1,000
1,750,000
—
1,750
Series P(4)
April 24, 2015
May 15, 2025
5.950 %
1,000
2,000,000
2,000
2,000
Series T(5)
April 25, 2016
August 15, 2026
6.250
1,000
1,500,000
1,500
1,500
Series U(6)
September 12, 2019
September 12, 2024
N/A
1,000
1,500,000
—
1,500
Series V(7)
January 23, 2020
January 30, 2025
4.700
1,000
1,500,000
1,500
1,500
Series W(8)
December 10, 2020
December 10, 2025
4.000
1,000
1,500,000
1,500
1,500
Series X(9)
February 18, 2021
February 18, 2026
3.875
1,000
2,300,000
2,300
2,300
Series Y(10)
October 27, 2021
November 15, 2026
4.150
1,000
1,000,000
1,000
1,000
Series Z(11)
March 7, 2023
May 15, 2028
7.375
1,000
1,250,000
1,250
1,250
Series AA(12)
September 21, 2023
November 15, 2028
7.625
1,000
1,500,000
1,500
1,500
Series BB(13)
March 6, 2024
May 15, 2029
7.200
1,000
550,000
550
—
Series CC(14)
May 29, 2024
August 15, 2029
7.125
1,000
1,750,000
1,750
—
Series DD(15)
July 30, 2024
August 15, 2034
7.000
1,000
1,500,000
1,500
—
Series EE(16)
December 3, 2024
February 15, 2030
6.750
1,000
1,500,000
1,500
—
$
17,850 $
17,600
(1)
Citi redeemed Series D in its entirety on May 15, 2024.
(2)
Citi redeemed the remaining Series J in its entirety on March 29, 2024.
(3)
Citi redeemed Series M in its entirety on August 15, 2024.
(4)
Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are
payable semiannually on May 15 and November 15 at a fixed rate until, but excluding, May 15, 2025, and thereafter payable quarterly on February 15, May 15,
August 15 and November 15 at a floating rate, in each case when, as and if declared by the Citi Board of Directors.
(5)
Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are
payable semiannually on February 15 and August 15 at a fixed rate until, but excluding, August 15, 2026, thereafter payable quarterly on February 15, May 15,
August 15 and November 15 at a floating rate, in each case when, as and if declared by the Citi Board of Directors.
(6)
Citi redeemed Series U in its entirety on September 12, 2024.
(7)
Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are
payable semiannually on January 30 and July 30 at a fixed rate until, but excluding, January 30, 2025, thereafter payable quarterly on January 30, April 30, July 30
and October 30 at a floating rate, in each case when, as and if declared by the Citi Board of Directors. Citi redeemed Series V in its entirety on January 30, 2025.
(8)
Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are
payable quarterly on March 10, June 10, September 10 and December 10 at a fixed rate until, but excluding, December 10, 2025, thereafter payable quarterly on
the same dates at a fixed rate that resets on the Series W reset date and every five years thereafter equal to the five-year treasury rate plus 3.597%, in each case
when, as and if declared by the Citi Board of Directors.
(9)
Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are
payable quarterly on February 18, May 18, August 18 and November 18 at a fixed rate until, but excluding, February 18, 2026, thereafter payable quarterly on the
same dates at a fixed rate that resets on the Series X reset date and every five years thereafter equal to the five-year treasury rate plus 3.417%, in each case when,
as and if declared by the Citi Board of Directors.
(10) Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are
payable quarterly on February 15, May 15, August 15 and November 15 at a fixed rate until, but excluding, November 15, 2026, thereafter payable quarterly on
the same dates at a fixed rate that resets on the Series Y reset date and every five years thereafter equal to the five-year treasury rate plus 3.000%, in each case
when, as and if declared by the Citi Board of Directors.
(11) Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are
payable quarterly on February 15, May 15, August 15 and November 15 at a fixed rate until, but excluding, May 15, 2028, thereafter payable quarterly on the
same dates at a fixed rate that resets on the Series Z reset date and every five years thereafter equal to the five-year treasury rate plus 3.209%, in each case when,
as and if declared by the Citi Board of Directors.
(12) Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are
payable quarterly on February 15, May 15, August 15 and November 15 at a fixed rate until, but excluding, November 15, 2028, thereafter payable quarterly on
the same dates at a fixed rate that resets on the Series AA reset date and every five years thereafter equal to the five-year treasury rate plus 3.211%, in each case
when, as and if declared by the Citi Board of Directors.
(13) Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are
payable quarterly on February 15, May 15, August 15 and November 15 at a fixed rate until, but excluding, May 15, 2029, thereafter payable quarterly on the
same dates at a fixed rate that resets on the Series BB reset date and every five years thereafter equal to the five-year treasury rate plus 2.905%, in each case when,
as and if declared by the Citi Board of Directors.
243
(14) Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are
payable quarterly on February 15, May 15, August 15 and November 15 at a fixed rate until, but excluding, August 15, 2029, thereafter payable quarterly on the
same dates at a fixed rate that resets on the Series CC reset date and every five years thereafter equal to the five-year treasury rate plus 2.693%, in each case when,
as and if declared by the Citi Board of Directors.
(15) Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are
payable quarterly on February 15, May 15, August 15 and November 15 at a fixed rate until, but excluding, August 15, 2034, thereafter payable quarterly on the
same dates at a fixed rate that resets on the Series DD reset date and every 10 years thereafter equal to the 10-year treasury rate plus 2.757%, in each case when, as
and if declared by the Citi Board of Directors.
(16) Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are
payable quarterly on February 15, May 15, August 15 and November 15 at a fixed rate until, but excluding, February 15, 2030, thereafter payable quarterly on the
same dates at a fixed rate that resets on the Series EE reset date and every five years thereafter equal to the five-year treasury rate plus 2.572%, in each case when,
as and if declared by the Citi Board of Directors.
N/A Not applicable, as the series has been redeemed.
On February 12, 2025, Citi issued $2 billion of Series FF preferred stock.
244
23. SECURITIZATIONS AND VARIABLE INTEREST
ENTITIES
Citigroup’s involvement with consolidated and unconsolidated VIEs with which the Company holds significant variable interests or
has continuing involvement through servicing a majority of the assets in a VIE is presented below:
As of December 31, 2024
Maximum exposure to loss in significant unconsolidated VIEs(1)
Funded exposures(2)
Unfunded exposures
In millions of dollars
Total
involvement
with SPE
assets
Consolidated
VIE/SPE
assets
Significant
unconsolidated
VIE assets(3)
Debt
investments
Equity
investments
Funding
commitments
Guarantees
and
derivatives
Total
Credit card securitizations
$
29,746 $
29,746 $
— $
— $
— $
— $
— $
—
Mortgage securitizations(4)
U.S. agency-sponsored
120,568
—
120,568
2,387
—
—
123
2,510
Non-agency-sponsored
62,378
—
62,378
3,479
—
566
—
4,045
Citi-administered asset-
backed commercial paper
conduits
21,306
21,306
—
—
—
—
—
—
Collateralized loan
obligations (CLOs)
3,920
—
3,920
2,019
—
—
—
2,019
Asset-based financing(5)
268,498
7,947
260,551
54,349
735
13,185
— 68,269
Municipal securities tender
option bond trusts (TOBs)
935
935
—
—
—
—
—
—
Municipal investments
20,280
3
20,277
2,360
2,730
2,502
—
7,592
Client intermediation
387
81
306
20
—
—
49
69
Investment funds
641
21
620
4
18
98
—
120
Total
$
528,659 $
60,039 $
468,620 $
64,618 $
3,483 $
16,351 $
172 $ 84,624
As of December 31, 2023
Maximum exposure to loss in significant unconsolidated VIEs(1)
Funded exposures(2)
Unfunded exposures
In millions of dollars
Total
involvement
with SPE
assets
Consolidated
VIE/SPE
assets
Significant
unconsolidated
VIE assets(3)
Debt
investments
Equity
investments
Funding
commitments
Guarantees
and
derivatives
Total
Credit card securitizations
$
31,852 $
31,852 $
— $
— $
— $
— $
— $
—
Mortgage securitizations(4)
U.S. agency-sponsored
123,787
—
123,787
2,332
—
—
136
2,468
Non-agency-sponsored
64,963
—
64,963
3,751
—
129
—
3,880
Citi-administered asset-
backed commercial paper
conduits
21,097
21,097
—
—
—
—
—
—
Collateralized loan
obligations (CLOs)
5,562
—
5,562
2,344
—
—
—
2,344
Asset-based financing(5)
204,680
12,197
192,483
48,187
902
13,655
— 62,744
Municipal securities tender
option bond trusts (TOBs)
1,493
883
610
12
—
417
—
429
Municipal investments
21,317
3
21,314
2,243
2,779
2,587
—
7,609
Client intermediation
368
86
282
37
—
—
—
37
Investment funds
545
70
475
3
10
95
—
108
Total
$
475,664 $
66,188 $
409,476 $
58,909 $
3,691 $
16,883 $
136 $ 79,619
(1)
The definition of maximum exposure to loss is included in the text that follows this table.
(2)
Included on Citigroup’s December 31, 2024 and 2023 Consolidated Balance Sheet.
(3)
A significant unconsolidated VIE is an entity in which the Company has any variable interest or continuing involvement considered to be significant, regardless of
the likelihood of loss.
(4)
Citigroup mortgage securitizations also include agency and non-agency (private label) re-securitization activities. These SPEs are not consolidated. See “Re-
securitizations” below for further discussion.
245
(5)
Included within this line are loans to third-party-sponsored private equity funds, which represent $45.5 billion and $6 billion in unconsolidated VIE assets and
$824 million and $282 million in maximum exposure to loss as of December 31, 2024 and 2023, respectively.
The previous tables do not include:
•
certain investment funds for which the Company provides
investment management services and personal estate
trusts for which the Company provides administrative,
trustee and/or investment management services;
•
certain third-party-sponsored private equity funds to
which the Company provides secured credit facilities. The
Company has no decision-making power and does not
consolidate these funds, some of which may meet the
definition of a VIE. The Company’s maximum exposure
to loss is generally limited to a loan or lending-related
commitment. As of December 31, 2024 and 2023, the
Company’s maximum exposure to loss related to these
transactions was $8.1 billion and $8.5 billion, respectively
(see Notes 15 and 26);
•
certain VIEs structured by third parties in which the
Company holds securities in inventory, as these
investments are made on arm’s-length terms;
•
certain positions in mortgage- and asset-backed securities
held by the Company, which are classified as Trading
account assets or Investments, in which the Company has
no other involvement with the related securitization entity
deemed to be significant (see Notes 14 and 26);
•
certain representations and warranties exposures in
Citigroup residential mortgage securitizations, in which
the original mortgage loan balances are no longer
outstanding; and
•
VIEs such as preferred securities trusts used in connection
with the Company’s funding activities. The Company
does not have a variable interest in these trusts.
Consolidated VIEs
The Company engages in on-balance sheet securitizations,
which are securitizations that do not qualify for sales
treatment; thus, the assets remain on Citi’s Consolidated
Balance Sheet, and any proceeds received are recognized as
secured liabilities. In general, the third-party investors in the
obligations of consolidated VIEs have legal recourse only to
the assets of the respective VIEs and do not have such
recourse to the Company, except where Citi has provided a
guarantee to the investors or is the counterparty to certain
derivative transactions involving the VIE. Thus, Citigroup’s
maximum legal exposure to loss related to consolidated VIEs
is significantly less than the carrying value of the consolidated
VIE assets due to outstanding third-party financing.
Intercompany assets and liabilities are excluded from
Citi’s Consolidated Balance Sheet. All VIE assets are
restricted from being sold or pledged as collateral. The cash
flows from these assets are the only source used to pay down
the associated liabilities, which are non-recourse to Citi’s
general assets.
The asset balances for consolidated VIEs represent the
carrying amounts of the assets consolidated by the Company.
The carrying amount may represent the amortized cost or the
current fair value of the assets depending on the classification
of the asset (e.g., loan or security) and the associated
accounting model ascribed to that classification.
The asset balances for unconsolidated VIEs in which the
Company has significant involvement represent the most
current information available to the Company. In most cases,
the asset balances represent an amortized cost basis without
regard to impairments, unless fair value information is readily
available to the Company.
The maximum funded exposure represents the balance
sheet carrying amount of the Company’s investment in the
VIE. It reflects the initial amount of cash invested in the VIE,
adjusted for any accrued interest and cash principal payments
received. The carrying amount may also be adjusted for
increases or declines in fair value or any impairment in value
recognized in earnings. The maximum exposure of unfunded
positions represents the remaining undrawn committed
amount, including liquidity and credit facilities provided by
the Company or the notional amount of a derivative
instrument considered to be a variable interest. In certain
transactions, the Company has entered into derivative
instruments or other arrangements that are not considered
variable interests in the VIE (e.g., interest rate swaps, cross-
currency swaps or where the Company is the purchaser of
credit protection under a credit default swap or total return
swap where the Company pays the total return on certain
assets to the SPE). Receivables under such arrangements are
not included in the maximum exposure amounts.
246
The following tables present certain assets and liabilities of consolidated VIEs, which are included on Citi’s Consolidated Balance
Sheet. The assets include those assets that can only be used to settle obligations of consolidated VIEs and are in excess of those
obligations. In addition, the assets include third-party assets of consolidated VIEs only and exclude intercompany balances that
eliminate in consolidation. The liabilities include third-party liabilities of consolidated VIEs only and exclude intercompany balances
that eliminate in consolidation. The liabilities also exclude amounts where creditors or beneficial interest holders have recourse to the
general credit of Citigroup.
December 31,
In millions of dollars
2024
2023
Assets of consolidated VIEs to be used to settle obligations of consolidated VIEs
Cash and due from banks
$
65 $
44
Trading account assets
6,971
11,350
Investments
739
767
Loans, net of unearned income
Consumer
32,958
35,141
Corporate
21,492
21,207
Loans, net of unearned income
$
54,450 $
56,348
Allowance for credit losses on loans (ACLL)
(2,376)
(2,481)
Total loans, net
$
52,074 $
53,867
Other assets
190
160
Total assets of consolidated VIEs to be used to settle obligations of consolidated VIEs
$
60,039 $
66,188
December 31,
In millions of dollars
2024
2023
Liabilities of consolidated VIEs for which creditors or beneficial interest holders
do not have recourse to the general credit of Citigroup
Short-term borrowings
$
13,628 $
9,692
Long-term debt
5,271
8,443
Other liabilities
920
927
Total liabilities of consolidated VIEs for which creditors or beneficial interest holders
do not have recourse to the general credit of Citigroup
$
19,819 $
19,062
247
Funding Commitments for Significant Unconsolidated VIEs—Liquidity Facilities and Loan Commitments
The following table presents the notional amount of liquidity facilities and loan commitments that are classified as funding
commitments in the VIE tables above:
December 31, 2024
December 31, 2023
In millions of dollars
Liquidity
facilities
Loan/equity
commitments
Liquidity
facilities
Loan/equity
commitments
Non-agency-sponsored mortgage securitizations
$
— $
566 $
— $
129
Citi-administered asset-backed commercial paper conduits
—
—
—
—
Asset-based financing
—
13,185
—
13,655
Municipal securities tender option bond trusts (TOBs)
—
—
417
—
Municipal investments
—
2,502
—
2,587
Investment funds
—
98
—
95
Total funding commitments
$
— $
16,351 $
417 $
16,466
Significant Interests in Unconsolidated VIEs—Balance Sheet Classification
The following table presents the carrying amounts and classification of significant variable interests in unconsolidated VIEs:
In billions of dollars
December 31, 2024
December 31, 2023
Cash
$
— $
—
Trading account assets
3.4
1.9
Investments
5.6
8.3
Total loans, net of allowance
58.4
51.8
Other
0.6
0.6
Total assets
$
68.0 $
62.6
248
Credit Card Securitizations
The Company securitizes credit card receivables through trusts
established to purchase the receivables. Citigroup transfers
receivables into the trusts on a non-recourse basis. Credit card
securitizations are revolving securitizations: as customers pay
their credit card balances, the cash proceeds are used to
purchase new receivables and replenish the receivables in the
trust.
The Company’s primary credit card securitization activity
is through two trusts—Citibank Credit Card Master Trust
(Master Trust) and Citibank Omni Trust (Omni Trust), with
the substantial majority through the Master Trust. These trusts
are consolidated entities because, as servicer, Citigroup has the
power to direct the activities that most significantly impact the
economic performance of the trusts. Citigroup holds a seller’s
interest and certain securities issued by the trusts, which could
result in exposure to potentially significant losses or benefits
from the trusts. Accordingly, the transferred credit card
receivables remain on Citi’s Consolidated Balance Sheet with
no gain or loss recognized. The debt issued by the trusts to
third parties is included on Citi’s Consolidated Balance Sheet.
Citi utilizes securitizations as one of the sources of
funding for its business in North America. The following table
reflects amounts related to the Company’s securitized credit
card receivables:
In billions of dollars
December 31, 2024
December 31, 2023
Ownership interests in principal amount of trust credit card receivables
Sold to investors via trust-issued securities
$
5.2 $
6.9
Retained by Citigroup as trust-issued securities
3.7
5.1
Retained by Citigroup via non-certificated interests
22.1
21.4
Total
$
31.0 $
33.4
The following table summarizes selected cash flow
information related to Citigroup’s credit card securitizations:
In billions of dollars
2024
2023
2022
Proceeds from new securitizations
$
— $
1.5 $
0.3
Pay down of maturing notes
(1.7)
(2.4)
(2.1)
Managed Loans
After securitization of credit card receivables, the Company
continues to maintain credit card customer account
relationships and provides servicing for receivables transferred
to the trusts. As a result, the Company considers the
securitized credit card receivables to be part of the business it
manages. As Citigroup consolidates the credit card trusts, all
managed securitized card receivables are on-balance sheet.
Funding, Liquidity Facilities and Subordinated Interests
As noted above, Citigroup securitizes credit card receivables
through two securitization trusts—Master Trust and Omni
Trust. The liabilities of the trusts are included on the
Consolidated Balance Sheet, excluding those retained by
Citigroup.
Master Trust Liabilities (at Par Value)
The Master Trust issues fixed- and floating-rate term notes.
Some of the term notes may be issued to multi-seller
commercial paper conduits. The weighted-average maturity of
the third-party term notes issued by the Master Trust was 3.6
years as of December 31, 2024 and 3.8 years as of
December 31, 2023.
In billions of dollars
Dec. 31,
2024
Dec. 31,
2023
Term notes issued to third parties
$
4.3 $
5.4
Term notes retained by Citigroup
affiliates
1.7
1.5
Total Master Trust liabilities
$
6.0 $
6.9
Omni Trust Liabilities (at Par Value)
The Omni Trust issues fixed- and floating-rate term notes,
some of which are purchased by multi-seller commercial paper
conduits. The weighted-average maturity of the third-party
term notes issued by the Omni Trust was 1.4 years as of
December 31, 2024 and 1.3 years as of December 31, 2023.
In billions of dollars
Dec. 31,
2024
Dec. 31,
2023
Term notes issued to third parties
$
0.9 $
1.5
Term notes retained by Citigroup
affiliates
2.0
3.6
Total Omni Trust liabilities
$
2.9 $
5.1
249
Mortgage Securitizations
Citigroup provides a wide range of mortgage loan products to
a diverse customer base that are securitized through the use of
VIEs, which are funded through the issuance of trust
certificates backed solely by the transferred assets. These
certificates have the same life as the transferred assets. In
addition to providing a source of liquidity and less expensive
funding, securitizing these assets also reduces Citi’s credit
exposure to the borrowers. These mortgage loan
securitizations are primarily non-recourse, thereby effectively
transferring the risk of future credit losses to the purchasers of
the securities issued by the trust.
Citi’s U.S. consumer mortgage business generally retains
the servicing rights and in certain instances retains investment
securities, interest-only strips and residual interests in future
cash flows from the trusts and also provides servicing for a
limited number of Services, Markets and Banking
securitizations. Citi’s Services, Markets and Banking
businesses may hold investment securities pursuant to credit
risk retention rules or in connection with secondary market-
making activities.
The Company securitizes mortgage loans generally
through either a U.S. government-sponsored agency, such as
Ginnie Mae, a U.S. agency-sponsored entity, such as Fannie
Mae or Freddie Mac, or a private label (non-agency-sponsored
mortgages) securitization. Citi is not the primary beneficiary
of its U.S. agency-sponsored mortgage securitization entities
because Citigroup does not have the power to direct the
activities of the VIEs that most significantly impact the
entities’ economic performance. Therefore, Citi does not
consolidate these U.S. agency-sponsored mortgage
securitization entities. Substantially all of the consumer loans
sold or securitized through non-consolidated trusts by
Citigroup are U.S. prime residential mortgage loans. Retained
interests in non-consolidated agency-sponsored mortgage
securitization trusts are classified as Trading account assets,
except for MSRs, which are included in Other assets on
Citigroup’s Consolidated Balance Sheet.
Citigroup does not consolidate certain non-agency-
sponsored mortgage securitization entities because Citi is
either not the servicer with the power to direct the significant
activities of the entity or Citi is the servicer, but the servicing
relationship is deemed to be a fiduciary relationship; therefore,
Citi is not deemed to be the primary beneficiary of the entity.
In certain instances, the Company has (i) the power to
direct the activities that most significantly impact the entities’
economic performance and (ii) the obligation to either absorb
losses or the right to receive benefits that could be potentially
significant to its non-agency-sponsored mortgage
securitization entities and, therefore, is the primary beneficiary
and, thus, consolidates the VIE.
The following tables summarize selected cash flow information and retained interests related to Citigroup mortgage securitizations:
2024
2023
2022
In billions of dollars
U.S. agency-
sponsored
mortgages
Non-agency-
sponsored
mortgages
U.S. agency-
sponsored
mortgages
Non-agency-
sponsored
mortgages
U.S. agency-
sponsored
mortgages
Non-agency-
sponsored
mortgages
Principal securitized
$
8.0 $
9.4 $
4.9 $
4.8 $
6.9 $
13.9
Proceeds from new securitizations
8.2
8.8
4.9
3.5
6.7
13.4
Contractual servicing fees received
0.1
—
0.1
—
0.1
—
Cash flows received on retained interests and other net
cash flows
—
0.2
—
0.2
—
0.2
Purchases of previously transferred financial assets
0.1
—
—
—
0.1
—
Note: Excludes re-securitization transactions.
For non-consolidated mortgage securitization entities
where the transfer of loans to the VIE meets the conditions for
sale accounting, Citi recognizes a gain or loss based on the
difference between the carrying value of the transferred assets
and the proceeds received (generally cash but may be
beneficial interests or servicing rights).
Agency and non-agency securitization gains for the year
ended December 31, 2024 were $0.4 million and $216.2
million, respectively.
Agency and non-agency securitization gains for the year
ended December 31, 2023 were $0.4 million and $88.7
million, respectively, and $1.3 million and $154.8 million,
respectively, for the year ended December 31, 2022.
2024
2023
Non-agency-sponsored
mortgages(1)
Non-agency-sponsored
mortgages(1)
In millions of dollars
U.S. agency-
sponsored
mortgages
Senior
interests
Subordinated
interests
U.S. agency-
sponsored
mortgages
Senior
interests
Subordinated
interests
Carrying value of retained interests(2) $
783 $
902 $
1,058 $
689 $
943 $
963
250
(1)
Disclosure of non-agency-sponsored mortgages as senior and subordinated interests is indicative of the interests’ position in the capital structure of the
securitization.
(2)
Retained interests consist of Level 2 and Level 3 assets depending on the observability of significant inputs. See Note 26 for more information about fair value
measurements.
Key assumptions used in measuring the fair value of retained interests at the date of sale or securitization of mortgage receivables
were as follows:
December 31, 2024
Non-agency-sponsored mortgages(1)
U.S. agency-
sponsored mortgages
Senior
interests
Subordinated
interests
Weighted-average discount rate
11.9 %
2.6 %
6.9 %
Weighted-average constant prepayment rate
9.5 %
17.7 %
10.1 %
Weighted-average anticipated net credit losses(2)
NM
0.2 %
0.4 %
Weighted-average life
6.8 years
3.2 years
7.5 years
December 31, 2023
Non-agency-sponsored mortgages(1)
U.S. agency-
sponsored mortgages
Senior
interests
Subordinated
interests
Weighted-average discount rate
12.9 %
6.0 %
6.1 %
Weighted-average constant prepayment rate
5.9 %
8.6 %
7.3 %
Weighted-average anticipated net credit losses(2)
NM
0.2 %
0.9 %
Weighted-average life
7.7 years
6.8 years
8.1 years
(1)
Disclosure of non-agency-sponsored mortgages as senior and subordinated interests is indicative of the interests’ position in the capital structure of the
securitization.
(2)
Anticipated net credit losses represent estimated loss severity associated with defaulted mortgage loans underlying the mortgage securitizations disclosed above.
Anticipated net credit losses, in this instance, do not represent total credit losses incurred to date, nor do they represent credit losses expected on retained interests
in mortgage securitizations.
NM Anticipated net credit losses are not meaningful due to U.S. agency guarantees.
The interests retained by the Company range from highly rated and/or senior in the capital structure to unrated and/or residual
interests. Key assumptions used in measuring the fair value of retained interests in securitizations of mortgage receivables at period
end were as follows:
December 31, 2024
Non-agency-sponsored mortgages(1)
U.S. agency-
sponsored mortgages
Senior
interests
Subordinated
interests
Weighted-average discount rate
7.2 %
23.6 %
NM
Weighted-average constant prepayment rate
5.7 %
16.4 %
NM
Weighted-average anticipated net credit losses(2)
NM
NM
NM
Weighted-average life
7.6 years
4.5 years
NM
December 31, 2023
Non-agency-sponsored mortgages(1)
U.S. agency-
sponsored mortgages
Senior
interests
Subordinated
interests
Weighted-average discount rate
5.4 %
NM
NM
Weighted-average constant prepayment rate
5.8 %
NM
NM
Weighted-average anticipated net credit losses(2)
NM
NM
NM
Weighted-average life
7.5 years
NM
NM
(1)
Disclosure of non-agency-sponsored mortgages as senior and subordinated interests is indicative of the interests’ position in the capital structure of the
securitization.
251
(2)
Anticipated net credit losses represent estimated loss severity associated with defaulted mortgage loans underlying the mortgage securitizations disclosed above.
Anticipated net credit losses, in this instance, do not represent total credit losses incurred to date, nor do they represent credit losses expected on retained interests
in mortgage securitizations.
NM Anticipated net credit losses are not meaningful due to U.S. agency guarantees.
The sensitivity of the fair value to adverse changes of 10% and 20% in each of the key assumptions is presented in the tables below.
The negative effect of each change is calculated independently, holding all other assumptions constant. Because the key assumptions
may not be independent, the net effect of simultaneous adverse changes in the key assumptions may be less than the sum of the
individual effects presented below.
December 31, 2024
Non-agency-sponsored mortgages
In millions of dollars
U.S. agency-
sponsored mortgages
Senior
interests
Subordinated
interests
Discount rate
Adverse change of 10%
$
(28) $
— $
—
Adverse change of 20%
(55)
(1)
—
Constant prepayment rate
Adverse change of 10%
(19)
—
—
Adverse change of 20%
(37)
(1)
—
Anticipated net credit losses
Adverse change of 10%
NM
—
—
Adverse change of 20%
NM
—
—
December 31, 2023
Non-agency-sponsored mortgages
In millions of dollars
U.S. agency-
sponsored mortgages
Senior
interests
Subordinated
interests
Discount rate
Adverse change of 10%
$
(20) $
— $
—
Adverse change of 20%
(40)
—
—
Constant prepayment rate
Adverse change of 10%
(17)
—
—
Adverse change of 20%
(34)
—
—
Anticipated net credit losses
Adverse change of 10%
NM
—
—
Adverse change of 20%
NM
—
—
NM Anticipated net credit losses are not meaningful due to U.S. agency guarantees.
The following table includes information about loan delinquencies and liquidation losses for assets held in non-consolidated, non-
agency-sponsored securitization entities at December 31:
Securitized assets
90 days past due
Liquidation losses
In billions of dollars, except liquidation losses in millions
2024
2023
2024
2023
2024
2023
Securitized assets
Residential mortgages(1)
$
31.0 $
28.2 $
0.3 $
0.5 $
(0.6) $
4.3
Commercial and other
31.1
29.9
—
—
—
—
Total
$
62.1 $
58.1 $
0.3 $
0.5 $
(0.6) $
4.3
(1) Securitized assets include $91 million of personal loan securitizations as of December 31, 2024.
252
Consumer Loan Securitizations
Beginning in the third quarter of 2023, Citi relaunched a
program securitizing other consumer loans into asset-backed
securities. The principal securitized and the proceeds from
new securitizations for the year ended December 31, 2024
were $1.2 billion and $1.2 billion, respectively, compared to
$1 billion and $0.7 billion, respectively, as of December 31,
2023. The gains recognized on the securitization of consumer
loans were $5.1 million and $7.5 million for the years ended
December 31, 2024 and 2023.
Mortgage Servicing Rights (MSRs)
In connection with the securitization of mortgage loans, Citi’s
U.S. consumer mortgage business generally retains the
servicing rights, which entitle the Company to a future stream
of cash flows based on the outstanding principal balances of
the loans and the contractual servicing fee. Failure to service
the loans in accordance with contractual requirements may
lead to a termination of the servicing rights and the loss of
future servicing fees.
These transactions create intangible assets referred to as
MSRs, which are recorded at fair value on Citi’s Consolidated
Balance Sheet (see Note 26 for the valuation of MSRs). The
MSRs correspond to principal loan balances of $56 billion and
$52 billion as of December 31, 2024 and 2023, respectively.
The Company receives fees during the course of servicing
previously securitized mortgages. The amounts of these fees
were as follows:
In millions of dollars
2024
2023
2022
Servicing fees
$
127 $
129 $
122
Late fees
1
4
4
Total MSR fees
$
128 $
133 $
126
In the Consolidated Statement of Income these fees are
primarily classified as Commissions and fees, and changes in
MSR fair values are classified as Other revenue.
Re-securitizations
The Company engages in re-securitization transactions backed
by either residential or commercial mortgages in which debt
securities are transferred to a VIE in exchange for new
beneficial interests. Citi did not transfer non-agency (private
label) securities to re-securitization entities, nor did Citi hold
retained interests in such securitizations during the years
ended December 31, 2024 and 2023.
As of December 31, 2024 and 2023, Citi held no retained
interests in private label re-securitization transactions
structured by Citi.
The Company also re-securitizes U.S. government-
agency-guaranteed mortgage-backed (agency) securities.
During the years ended December 31, 2024 and 2023, Citi
transferred agency securities with a fair value of
approximately $22.8 billion and $17.1 billion, respectively, to
re-securitization entities.
As of December 31, 2024, the fair value of Citi-retained
interests in agency re-securitization transactions structured by
Citi totaled approximately $1.6 billion (including $977 million
related to re-securitization transactions executed in 2024),
compared to $1.7 billion as of December 31, 2023 (including
$930 million related to re-securitization transactions executed
in 2023), which is recorded in Trading account assets. The
original fair values of agency re-securitization transactions in
which Citi holds a retained interest as of December 31, 2024
and 2023 were approximately $76.8 billion and $84.1 billion,
respectively.
As of December 31, 2024 and 2023, the Company did not
consolidate any private label or agency re-securitization
entities.
Citi-Administered Asset-Backed Commercial Paper
Conduits
Citi’s multi-seller commercial paper conduits provide the
Company’s clients access to low-cost funding in the
commercial paper markets. The conduits provide financing
facilities to clients that are funded by issuing commercial
paper to third-party investors.
As administrator to Citi’s conduits, the Company is
responsible for selecting and structuring assets purchased or
financed by the conduits, making decisions regarding the
funding of the conduits, including determining the tenor and
other features of the commercial paper issued, monitoring the
quality and performance of the conduits’ assets and facilitating
the operations and cash flows of the conduits. In return, the
Company earns structuring fees from customers for individual
transactions and earns an administration fee from the conduit.
The assets are privately negotiated and structured
transactions that are generally designed to be held by the
conduit, rather than actively traded and sold. The yield earned
by the conduit on each asset is generally tied to the rate on the
commercial paper issued by the conduit, thus passing interest
rate risk to the client. Each asset purchased by the conduit is
structured with transaction-specific credit enhancement
features provided by the third-party client, including over-
collateralization, cash and excess spread collateral accounts,
direct recourse or third-party guarantees. These credit
enhancements are sized with the objective of approximating a
credit rating of A or above, based on Citi’s internal risk
ratings. At December 31, 2024 and 2023, the commercial
paper conduits administered by Citi had approximately $21.3
billion and $21.1 billion of purchased assets outstanding, and
unfunded commitments with clients of approximately $16.7
billion and $16.7 billion, respectively.
At December 31, 2024 and 2023, the weighted-average
remaining maturities of the commercial paper issued by the
conduits were approximately 82 and 68 days, respectively.
The conduits have obtained letters of credit from the
Company that equal at least 8% to 10% of the conduit’s assets
with a minimum of $200 million to $350 million. The letters
of credit provided by the Company to the conduits total
approximately $2.1 billion as of December 31, 2024 and $2.1
billion as of December 31, 2023. In the event that defaulted
assets exceed the transaction-specific credit enhancement
described above, any losses in each conduit are allocated first
to the Company and then to the commercial paper investors.
Citigroup also provides the conduits with two forms of
liquidity agreements that are used to provide funding to the
conduits in the event of a market disruption, among other
events. Each asset of the conduits is supported by a
253
transaction-specific liquidity facility in the form of an asset
purchase agreement (APA). Under the APA, the Company has
generally agreed to purchase non-defaulted eligible
receivables from the conduit at par. The APA generally does
not permit the purchase of defaulted or impaired assets. Any
funding under the APA will likely subject the underlying
conduit clients to increased interest costs. In addition, the
Company provides the conduits with program-wide liquidity
in the form of short-term lending commitments, where the
Company has agreed to lend to the conduits in the event of a
short-term disruption in the commercial paper market, subject
to specified conditions.
In the normal course of business, Citi purchases
commercial paper, including commercial paper issued by
Citigroup’s conduits. At December 31, 2024 and 2023, the
Company owned $6.4 billion and $10.1 billion, respectively,
of the commercial paper issued by its administered conduits.
The Company’s investments were not driven by market
illiquidity and the Company is not obligated under any
agreement to purchase the commercial paper issued by the
conduits.
The asset-backed commercial paper conduits are
consolidated by Citi. The Company has determined that,
through its roles as administrator and liquidity provider, it has
both the power to direct the activities that most significantly
impact the entities’ economic performance and an economic
interest that could potentially be significant. No assets of any
conduit are available to satisfy the creditors of Citigroup or
any of its other subsidiaries.
Collateralized Loan Obligations (CLOs)
A collateralized loan obligation (CLO) is a VIE that purchases
a portfolio of assets consisting primarily of non-investment-
grade corporate loans, financed through the issuance of
multiple tranches of debt and equity to investors. A third-party
asset manager is contracted by the CLO to purchase the
underlying assets from the open market and monitor the credit
risk associated with those assets. Over the term of a CLO, the
asset manager directs purchases and sales of assets in a
manner consistent with the CLO’s asset management
agreement and indenture.
Citi serves as a structuring and placement agent with
respect to certain CLOs. Typically, the debt and equity of the
CLOs are sold to third-party investors. On occasion, certain
Citi entities may purchase some portion of a CLO’s liabilities
for investment purposes. In addition, Citi may purchase,
typically in the secondary market, certain securities issued by
the CLOs to support its market-making activities.
The Company generally does not have the power to direct
the activities that most significantly impact the economic
performance of the CLOs, as this power is generally held by a
third-party asset manager of the CLO. As such, those CLOs
are not consolidated.
The following tables summarize selected cash flow
information and retained interests related to Citigroup CLOs:
In billions of dollars
2024
2023
2022
Cash flows received on retained
interests and other net cash flows
$
0.3 $
0.1 $
0.3
Purchases of previously transferred
financial assets
—
—
—
In millions of dollars
Dec. 31,
2024
Dec. 31,
2023
Dec. 31,
2022
Carrying value of retained
interests
$
275 $
604 $
681
All of Citi’s retained interests were held-to-maturity
securities as of December 31, 2024 and 2023.
Municipal Securities Tender Option Bond (TOB) Trusts
Municipal TOB trusts may hold fixed- or floating-rate, taxable
or tax-exempt securities issued by state and local governments
and municipalities. TOB trusts are typically structured as
single-issuer entities whose assets are purchased from either
the Company or from other investors in the municipal
securities market. TOB trusts finance the purchase of their
municipal assets by issuing two classes of certificates: long-
dated, floating rate certificates (Floaters) that are putable
pursuant to a liquidity facility and residual interest certificates
(Residuals). The Floaters are purchased by third-party
investors, typically tax-exempt money market funds. The
Residuals are purchased by the original owner of the
municipal securities that are being financed.
From Citigroup’s perspective, there are two types of TOB
trusts: customer and non-customer. Customer TOB trusts are
those trusts utilized by customers of the Company to finance
their securities, generally municipal securities. The Residuals
issued by these trusts are purchased by the customer being
financed. Non-customer TOB trusts are generally used by the
Company to finance its own municipal securities investments;
the Residuals issued by non-customer TOB trusts are
purchased by the Company.
With respect to both customer and non-customer TOB
trusts, Citi may provide remarketing agent services. If Floaters
are optionally tendered, Citigroup may, but is not obligated to,
purchase the tendered Floaters into its own inventory. The
level of the Company’s inventory of such Floaters fluctuates.
For certain non-customer trusts, the Company also
provides credit enhancement. At December 31, 2024, $0.4
billion of the municipal bonds owned by non-customer TOB
trusts were subject to a credit guarantee provided by the
Company. At December 31, 2023 none of the municipal bonds
owned by non-customer TOB trusts were subject to a credit
guarantee provided by the Company.
Citigroup also provides liquidity services to many
customer and non-customer trusts. If a trust is unwound early
due to an event other than a credit event on the underlying
municipal bonds, the underlying municipal bonds are sold out
of the trust and bond sale proceeds are used to redeem the
outstanding trust certificates. If this results in a shortfall
between the bond sale proceeds and the redemption price of
254
the tendered Floaters, the Company, pursuant to the liquidity
agreement, would be obligated to make a payment to the trust
to satisfy that shortfall. For certain customer TOB trusts,
Citigroup has also executed a reimbursement agreement with
the holder of the Residual, pursuant to which the Residual
holder is obligated to reimburse the Company for any payment
the Company makes under the liquidity arrangement. These
reimbursement agreements may be subject to daily margining
based on changes in the market value of the underlying
municipal bonds. In cases where a third party provides
liquidity to a non-customer TOB trust, a similar
reimbursement arrangement may be executed, whereby the
Company (or a consolidated subsidiary of the Company), as
Residual holder, would absorb any losses incurred by the
liquidity provider.
For certain other non-customer TOB trusts, Citi serves as
tender option provider. The tender option provider
arrangement allows Floater holders to put their interests
directly to the Company at any time, subject to the requisite
notice period requirements, at a price of par.
At December 31, 2024, the Company did not have any
liquidity or reimbursement agreements. At December 31,
2023, liquidity agreements provided with respect to customer
TOB trusts totaled $0.4 billion, of which $0.3 billion was
offset by reimbursement agreements.
Citi considers both customer and non-customer TOB
trusts to be VIEs. Customer TOB trusts are not consolidated
by the Company, as the power to direct the activities that most
significantly impact the trust’s economic performance rests
with the customer Residual holder, who may unilaterally cause
the sale of the trust’s bonds.
Non-customer TOB trusts generally are consolidated
because the Company holds the Residual interest and thus has
the unilateral power to cause the sale of the trust’s bonds.
The Company also provides other liquidity agreements or
letters of credit to customer-sponsored municipal investment
funds, which are not variable interest entities, and
municipality-related issuers that totaled $0.5 billion as of
December 31, 2024 and $1.2 billion as of December 31, 2023.
These liquidity agreements and letters of credit are offset by
reimbursement agreements with various term-out provisions.
Municipal Investments
Municipal investment transactions include debt and equity
interests in partnerships that finance the construction and
rehabilitation of low-income housing, facilitate lending in new
or underserved markets or finance the construction or
operation of renewable municipal energy facilities. Citi
generally invests in these partnerships as a limited partner and
earns a return primarily through the receipt of tax credits and
grants earned from the investments made by the partnership.
The Company may also provide construction loans or
permanent loans for the development or operation of real
estate properties held by partnerships. These entities are
generally considered VIEs. The power to direct the activities
of these entities is typically held by the general partner.
Accordingly, these entities are not consolidated by Citigroup.
Client Intermediation
Client intermediation transactions represent a range of
transactions designed to provide investors with specified
returns based on the returns of an underlying security,
referenced asset or index. These transactions include credit-
linked notes and equity-linked notes. In these transactions, the
VIE typically obtains exposure to the underlying security,
referenced asset or index through a derivative instrument, such
as a total-return swap or a credit-default swap. In turn, the VIE
issues notes to investors that pay a return based on the
specified underlying security, referenced asset or index. The
VIE invests the proceeds in a financial asset or a guaranteed
insurance contract that serves as collateral for the derivative
contract over the term of the transaction. The Company’s
involvement in these transactions includes being the
counterparty to the VIE’s derivative instruments and investing
in a portion of the notes issued by the VIE. In certain
transactions, the investor’s maximum risk of loss is limited
and the Company absorbs risk of loss above a specified level.
Citi does not have the power to direct the activities of the VIEs
that most significantly impact their economic performance and
thus it does not consolidate them.
Citi’s maximum risk of loss in these transactions is
defined as the amount invested in notes issued by the VIE and
the notional amount of any risk of loss absorbed by Citi
through a separate instrument issued by the VIE. The
derivative instrument held by the Company may generate a
receivable from the VIE (e.g., where the Company purchases
credit protection from the VIE in connection with the VIE’s
issuance of a credit-linked note), which is collateralized by the
assets owned by the VIE. These derivative instruments are not
considered variable interests and any associated receivables
are not included in the calculation of maximum exposure to
the VIE.
Investment Funds
The Company is the investment manager for certain
investment funds and retirement funds that invest in various
asset classes including private equity, hedge funds, real estate,
fixed income and infrastructure. Citigroup earns a
management fee, which is a percentage of capital under
management, and may earn performance fees. In addition, for
some of these funds the Company has an ownership interest in
the investment funds. Citi has also established a number of
investment funds as opportunities for qualified employees to
invest in private equity investments. The Company acts as
investment manager for these funds and may provide
employees with financing on both recourse and non-recourse
bases for a portion of the employees’ investment
commitments.
255
Asset-Based Financing
The Company provides loans and other forms of financing to VIEs that hold assets. Those loans are subject to the same credit
approvals as all other loans originated or purchased by the Company. Financings in the form of debt securities or derivatives are, in
most circumstances, reported in Trading account assets and accounted for at fair value through earnings. The Company generally does
not have the power to direct the activities that most significantly impact these VIEs’ economic performance; thus, it does not
consolidate them.
The primary types of Citi’s asset-based financings, total assets of the unconsolidated VIEs with significant involvement and Citi’s
maximum exposure to loss are presented below. For Citi to realize the maximum loss, the VIE (borrower) would have to default with
no recovery from the assets held by the VIE.
December 31, 2024
December 31, 2023
In millions of dollars
Total
unconsolidated
VIE assets
Maximum
exposure to
unconsolidated
VIEs
Total
unconsolidated
VIE assets
Maximum
exposure to
unconsolidated
VIEs
Type
Commercial and other real estate
$
61,322 $
9,693 $
42,869 $
8,831
Corporate loans
45,542
21,009
27,903
18,546
Other (including investment funds, airlines and shipping)
153,687
37,567
121,711
35,367
Total
$
260,551 $
68,269 $
192,483 $
62,744
256
24. DERIVATIVES
In the ordinary course of business, Citigroup enters into
various types of derivative transactions, which include:
•
Futures and forward contracts, which are commitments
to buy or sell at a future date a financial instrument,
commodity or currency at a contracted price that may be
settled in cash or through delivery of an item readily
convertible to cash.
•
Swap contracts, which are commitments to settle in cash
at a future date or dates that may range from a few days to
a number of years, based on differentials between
specified indices or financial instruments, as applied to a
notional principal amount.
•
Option contracts, which give the purchaser, for a
premium, the right, but not the obligation, to buy or sell
within a specified time a financial instrument, commodity
or currency at a contracted price that may also be settled
in cash, based on differentials between specified indices
or prices.
Swaps, forwards and some option contracts are over-the-
counter (OTC) derivatives that are bilaterally negotiated with
counterparties and settled with those counterparties, except for
swap contracts that are novated and “cleared” through central
counterparties (CCPs). Futures contracts and other option
contracts are standardized contracts that are traded on an
exchange with a CCP as the counterparty from the inception of
the transaction. Citigroup enters into derivative contracts
relating to interest rate, foreign currency, commodity and other
market/credit risks for the following reasons:
•
Trading Purposes: Citigroup trades derivatives as an
active market maker. Citigroup offers its customers
derivatives in connection with their risk management
actions to transfer, modify or reduce their interest rate,
foreign exchange and other market/credit risks or for their
own trading purposes. Citigroup also manages its
derivative risk positions through offsetting trade activities.
•
Hedging: Citigroup uses derivatives in connection with its
own risk management activities to hedge certain risks or
reposition the risk profile of the Company. Hedging may
be accomplished by applying hedge accounting in
accordance with ASC 815, Derivatives and Hedging. For
example, Citigroup issues fixed-rate long-term debt and
then enters into a receive-fixed, pay-variable-rate interest
rate swap with the same tenor and notional amount to
synthetically convert the interest payments to a net
variable-rate basis. This strategy is the most common
form of an interest rate hedge, as it minimizes net interest
cost in certain yield curve environments. Derivatives are
also used to manage market risks inherent in specific
groups of on-balance sheet assets and liabilities, including
AFS securities, commodities and borrowings, as well as
other interest-sensitive assets and liabilities. In addition,
foreign exchange contracts are used to hedge non-U.S.-
dollar-denominated debt, foreign currency-denominated
AFS securities and net investment exposures.
Derivatives may expose Citigroup to market, credit or
liquidity risks in excess of the amounts recorded on the
Consolidated Balance Sheet. Market risk on a derivative
product is the exposure created by potential fluctuations in
interest rates, market prices, foreign exchange rates and other
factors and is a function of the type of product, the volume of
transactions, the tenor and terms of the agreement and the
underlying volatility. Credit risk is the exposure to loss in the
event of nonperformance by the other party to satisfy a
derivative liability where the value of any collateral held by
Citi is not adequate to cover such losses. The recognition in
earnings of unrealized gains on derivative transactions is
subject to management’s assessment of the probability of
counterparty default. Liquidity risk is the potential exposure
that arises when the size of a derivative position may affect the
ability to monetize the position in a reasonable period of time
and at a reasonable cost in periods of high volatility and
financial stress.
Derivative transactions are customarily documented under
industry standard master netting agreements, which provide
that following an event of default, the non-defaulting party
may promptly terminate all transactions between the parties
and determine the net obligation due to be paid to, or by, the
defaulting party. These net obligations under master netting
agreements are often secured by collateral posted under an
industry standard credit support annex to the master netting
agreement.
The netting and collateral rights incorporated in the
master netting agreements are considered to be legally
enforceable if a supportive legal opinion has been obtained
from counsel of recognized standing that provides (i) the
requisite level of certainty regarding enforceability and (ii)
that the exercise of rights by the non-defaulting party to
terminate and close-out transactions on a net basis under these
agreements will not be stayed or avoided under applicable law
upon an event of default, including bankruptcy, insolvency or
similar proceeding.
A legal opinion may not be sought for certain jurisdictions
where local law is silent or unclear as to the enforceability of
such rights or where adverse case law or conflicting regulation
may cast doubt on the enforceability of such rights. In some
jurisdictions and for some counterparty types, the insolvency
law may not provide the requisite level of certainty. For
example, this may be the case for certain sovereigns,
municipalities, central banks and U.S. pension plans.
Exposure to credit risk on derivatives is affected by
market volatility, which may impair the ability of
counterparties to satisfy their obligations to the Company.
Credit limits are established and closely monitored for
customers engaged in derivatives transactions. Citi considers
the level of legal certainty regarding enforceability of its
offsetting rights under master netting agreements and credit
support annexes to be an important factor in its risk
management process. Specifically, Citi generally transacts
much lower volumes of derivatives under master netting
agreements where Citi does not have the requisite level of
legal certainty regarding enforceability, because such
derivatives consume greater amounts of single counterparty
credit limits than those executed under enforceable master
netting agreements.
257
Cash collateral and security collateral in the form of G10
government debt securities are often posted by a party to a
master netting agreement to secure the net open exposure of
the other party; the receiving party is free to commingle/
rehypothecate such collateral in the ordinary course of its
business. Nonstandard collateral such as corporate bonds,
municipal bonds, U.S. agency securities and/or MBS may also
be pledged as collateral for derivative transactions. Security
collateral posted to open and maintain a master netting
agreement with a counterparty, in the form of cash and/or
securities, may from time to time be segregated in an account
at a third-party custodian pursuant to a tri-party account
control agreement.
Information pertaining to Citigroup’s derivatives
activities, based on notional amounts, is presented in the table
below. Derivative notional amounts are reference amounts
from which contractual payments are derived and do not
represent a complete measure of Citi’s exposure to derivative
transactions. Citi’s derivative exposure arises primarily from
market fluctuations (i.e., market risk), counterparty failure
(i.e., credit risk) and/or periods of high volatility or financial
stress (i.e., liquidity risk), as well as any market valuation
adjustments that may be required on the transactions.
Moreover, notional amounts presented below do not reflect the
netting of offsetting trades. For example, if Citi enters into a
receive-fixed interest rate swap with $100 million notional,
and offsets this risk with an identical but opposite pay-fixed
position with a different counterparty, $200 million in
derivative notionals is reported, although these offsetting
positions may result in de minimis overall market risk.
In addition, aggregate derivative notional amounts can
fluctuate from period to period in the normal course of
business based on Citi’s market share, levels of client activity
and other factors. All derivatives are recorded in Trading
account assets/Trading account liabilities on the Consolidated
Balance Sheet.
258
Derivative Notionals
Hedging instruments under ASC 815
Trading derivative instruments
In millions of dollars
December 31,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Interest rate contracts
Swaps
$
276,939 $
277,003 $
15,245,212 $
17,077,712
Futures and forwards
—
—
3,006,869
3,022,127
Written options
—
—
2,799,577
2,753,912
Purchased options
—
—
2,526,165
2,687,662
Total interest rate contracts
$
276,939 $
277,003 $
23,577,823 $
25,541,413
Foreign exchange contracts
Swaps
$
36,421 $
45,851 $
7,422,309 $
7,943,054
Futures, forwards and spot
55,671
49,779
4,028,135
3,737,063
Written options
—
—
1,022,109
778,397
Purchased options
—
—
1,013,884
771,134
Total foreign exchange contracts
$
92,092 $
95,630 $
13,486,437 $
13,229,648
Equity contracts
Swaps
$
— $
— $
323,751 $
317,117
Futures and forwards
—
—
73,437
72,592
Written options
—
—
581,659
544,315
Purchased options
—
—
436,702
428,949
Total equity contracts
$
— $
— $
1,415,549 $
1,362,973
Commodity and other contracts
Swaps
$
— $
— $
80,582 $
82,009
Futures and forwards
4,403
1,750
183,494
161,811
Written options
—
—
54,673
49,555
Purchased options
—
—
55,819
46,742
Total commodity and other contracts
$
4,403 $
1,750 $
374,568 $
340,117
Credit derivatives(1)
Protection sold
$
— $
— $
439,146 $
496,699
Protection purchased
—
—
531,429
567,627
Total credit derivatives
$
— $
— $
970,575 $
1,064,326
Total derivative notionals
$
373,434 $
374,383 $
39,824,952 $
41,538,477
(1)
Credit derivatives are arrangements designed to allow one party (protection purchaser) to transfer the credit risk of a “reference asset” to another party (protection
seller). These arrangements allow a protection seller to assume the credit risk associated with the reference asset without directly purchasing that asset. The
Company enters into credit derivative positions for purposes such as risk management, yield enhancement, reduction of credit concentrations and diversification of
overall risk, and as a market-maker to facilitate client transactions.
The following tables present the gross and net fair values
of the Company’s derivative transactions and the related
offsetting amounts as of December 31, 2024 and 2023. Gross
positive fair values are offset against gross negative fair values
by counterparty, pursuant to enforceable master netting
agreements. Under ASC 815-10-45, payables and receivables
in respect of cash collateral received from or paid to a given
counterparty pursuant to a credit support annex are included in
the offsetting amount if a legal opinion supporting the
enforceability of netting and collateral rights has been
obtained. GAAP does not permit similar offsetting for security
collateral.
In addition, the following tables reflect rule changes
adopted by clearing organizations that require or allow entities
to treat certain derivative assets, liabilities and the related
variation margin as settlement of the related derivative fair
values for legal and accounting purposes, as opposed to
presenting gross derivative assets and liabilities that are
subject to collateral, whereby the counterparties would also
record a related collateral payable or receivable. The tables
also present amounts that are not permitted to be offset in the
Company’s balance sheet presentation, such as security
collateral or cash collateral posted at third-party custodians,
but which would be eligible for offsetting to the extent that an
event of default has occurred and a legal opinion supporting
enforceability of the netting and collateral rights has been
obtained.
259
Derivative Mark-to-Market (MTM) Receivables/Payables
Derivatives classified in
Trading account assets/liabilities(1)(2)
In millions of dollars at December 31, 2024
Assets
Liabilities
Derivatives instruments designated as ASC 815 hedges
Over-the-counter
$
695 $
1
Cleared
154
19
Interest rate contracts
$
849 $
20
Over-the-counter
$
2,951 $
1,117
Cleared
—
—
Foreign exchange contracts
$
2,951 $
1,117
Total derivatives instruments designated as ASC 815 hedges
$
3,800 $
1,137
Derivatives instruments not designated as ASC 815 hedges
Over-the-counter
$
95,907 $
88,776
Cleared
33,447
33,269
Exchange traded
75
67
Interest rate contracts
$
129,429 $
122,112
Over-the-counter
$
210,755 $
202,582
Cleared
2,329
2,298
Exchange traded
10
20
Foreign exchange contracts
$
213,094 $
204,900
Over-the-counter
$
19,262 $
25,950
Cleared
—
—
Exchange traded
35,882
35,786
Equity contracts
$
55,144 $
61,736
Over-the-counter
$
11,945 $
13,804
Exchange traded
675
826
Commodity and other contracts
$
12,620 $
14,630
Over-the-counter
$
6,907 $
5,569
Cleared
1,808
1,684
Credit derivatives
$
8,715 $
7,253
Total derivatives instruments not designated as ASC 815 hedges
$
419,002 $
410,631
Total derivatives
$
422,802 $
411,768
Less: Netting agreements(3)
$
(334,900) $
(334,900)
Less: Netting cash collateral received/paid(4)
(27,303)
(28,570)
Net receivables/payables included on the Consolidated Balance Sheet(5)
$
60,599 $
48,298
Additional amounts subject to an enforceable master netting agreement,
but not offset on the Consolidated Balance Sheet
Less: Cash collateral received/paid
$
(808) $
(52)
Less: Non-cash collateral received/paid
(6,017)
(3,376)
Total net receivables/payables(5)
$
53,774 $
44,870
(1)
The derivatives fair values are also presented in Note 26.
(2)
OTC derivatives are derivatives executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house. Cleared
derivatives include derivatives executed bilaterally with a counterparty in the OTC market, but then novated to a central clearing house, whereby the central
clearing house becomes the counterparty to both of the original counterparties. Exchange-traded derivatives include derivatives executed directly on an organized
exchange that provides pre-trade price transparency.
(3)
Represents the netting of balances with the same counterparty under enforceable netting agreements. Approximately $264 billion, $36 billion and $35 billion of
the netting against trading account asset/liability balances is attributable to each of the OTC, cleared and exchange-traded derivatives, respectively.
(4)
Represents the netting of cash collateral paid and received by counterparties under enforceable credit support agreements with appropriate legal opinion
supporting enforceability of netting. Substantially all netting of cash collateral received and paid is against OTC derivative assets and liabilities, respectively.
(5)
The net receivables/payables include approximately $13 billion of derivative asset and $15 billion of derivative liability fair values not subject to enforceable
master netting agreements, respectively.
260
Derivatives classified in
Trading account assets/liabilities(1)(2)
In millions of dollars at December 31, 2023
Assets
Liabilities
Derivatives instruments designated as ASC 815 hedges
Over-the-counter
$
458 $
5
Cleared
99
121
Interest rate contracts
$
557 $
126
Over-the-counter
$
1,690 $
1,732
Cleared
—
—
Foreign exchange contracts
$
1,690 $
1,732
Total derivatives instruments designated as ASC 815 hedges
$
2,247 $
1,858
Derivatives instruments not designated as ASC 815 hedges
Over-the-counter
$
113,993 $
105,512
Cleared
43,858
47,462
Exchange traded
86
86
Interest rate contracts
$
157,937 $
153,060
Over-the-counter
$
157,633 $
155,027
Cleared
368
420
Exchange traded
3
22
Foreign exchange contracts
$
158,004 $
155,469
Over-the-counter
$
19,515 $
25,425
Cleared
—
—
Exchange traded
23,763
22,521
Equity contracts
$
43,278 $
47,946
Over-the-counter
$
16,921 $
18,086
Exchange traded
648
710
Commodity and other contracts
$
17,569 $
18,796
Over-the-counter
$
6,094 $
6,293
Cleared
2,245
1,789
Credit derivatives
$
8,339 $
8,082
Total derivatives instruments not designated as ASC 815 hedges
$
385,127 $
383,353
Total derivatives
$
387,374 $
385,211
Less: Netting agreements(3)
$
(308,431) $
(308,431)
Less: Netting cash collateral received/paid(4)
(21,226)
(26,101)
Net receivables/payables included on the Consolidated Balance Sheet(5)
$
57,717 $
50,679
Additional amounts subject to an enforceable master netting agreement,
but not offset on the Consolidated Balance Sheet
Less: Cash collateral received/paid
$
(563) $
(348)
Less: Non-cash collateral received/paid
(5,208)
(12,504)
Total net receivables/payables(5)
$
51,946 $
37,827
(1)
The derivative fair values are also presented in Note 26.
(2)
OTC derivatives are derivatives executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house. Cleared
derivatives include derivatives executed bilaterally with a counterparty in the OTC market, but then novated to a central clearing house, whereby the central
clearing house becomes the counterparty to both of the original counterparties. Exchange-traded derivatives include derivatives executed directly on an organized
exchange that provides pre-trade price transparency.
(3)
Represents the netting of balances with the same counterparty under enforceable netting agreements. Approximately $242 billion, $44 billion and $22 billion of
the netting against trading account asset/liability balances is attributable to each of the OTC, cleared and exchange-traded derivatives, respectively.
(4)
Represents the netting of cash collateral paid and received by counterparties under enforceable credit support agreements with appropriate legal opinion
supporting enforceability of netting. Substantially all netting of cash collateral received and paid is against OTC derivative assets and liabilities, respectively.
(5)
The net receivables/payables include approximately $4 billion of derivative asset and $10 billion of derivative liability fair values not subject to enforceable
master netting agreements, respectively.
261
For the years ended December 31, 2024, 2023 and 2022,
amounts recognized in Principal transactions in the
Consolidated Statement of Income include certain derivatives
not designated in a qualifying hedging relationship. Citigroup
presents this disclosure by business classification, showing
derivative gains and losses related to its trading activities
together with gains and losses related to non-derivative
instruments within the same trading portfolios, as this
represents how these portfolios are risk managed. See Note 6
for further information.
The amounts recognized in Other revenue in the
Consolidated Statement of Income related to derivatives not
designated in a qualifying hedging relationship are presented
below. The table below does not include any offsetting gains
(losses) on the economically hedged items:
Gains (losses) included in
Other revenue
Year ended December 31,
In millions of dollars
2024
2023
2022
Interest rate contracts
$
(91) $
(47) $
141
Foreign exchange
(135)
(216)
(56)
Total
$
(226) $
(263) $
85
The following table summarizes the gains (losses) on the Company’s fair value hedges:
Gains (losses) on fair value hedges(1)
Year ended December 31,
2024
2023
2022
In millions of dollars
Other
revenue
Net
interest
income
Other
revenue
Net
interest
income
Other
revenue
Net
interest
income
Gain (loss) on the hedging derivatives included in assessment of the
effectiveness of fair value hedges
Interest rate hedges
$
— $
(1,073) $
— $
(804) $
— $
(8,322)
Foreign exchange hedges
(112)
—
1,433
—
(1,375)
—
Commodity hedges(2)
657
—
(46)
—
(1,870)
—
Total gain (loss) on the hedging derivatives included in assessment of
the effectiveness of fair value hedges
$
545 $
(1,073) $
1,387 $
(804) $
(3,245) $
(8,322)
Gain (loss) on the hedged item in designated and qualifying fair
value hedges
Interest rate hedges
$
— $
1,071 $
— $
795 $
— $
8,087
Foreign exchange hedges
112
—
(1,433)
—
1,372
—
Commodity hedges(2)
(657)
—
46
—
1,870
—
Total gain (loss) on the hedged item in designated and qualifying fair
value hedges
$
(545) $
1,071 $
(1,387) $
795 $
3,242 $
8,087
Net gain (loss) on the hedging derivatives excluded from assessment
of the effectiveness of fair value hedges
Interest rate hedges
$
— $
— $
— $
— $
— $
—
Foreign exchange hedges(3)
36
—
2
—
171
—
Commodity hedges(2)(4)
396
—
312
—
94
—
Total net gain (loss) on the hedging derivatives excluded from
assessment of the effectiveness of fair value hedges
$
432 $
— $
314 $
— $
265 $
—
(1)
Gain (loss) amounts for interest rate risk hedges are included in Interest income/Interest expense. The accrued interest income on fair value hedges is recorded in
Net interest income and is excluded from this table. Amounts included both hedges of AFS securities and long-term debt on a net basis, which largely offset in the
current period.
(2)
The gain (loss) amounts for commodity hedges are included in Principal transactions for periods beginning 2023.
(3)
Amounts related to the forward points (i.e., the spot-forward difference) that are excluded from the assessment of hedge effectiveness and are generally reflected
directly in earnings under the mark-to-market approach. Amounts related to cross-currency basis, which are recognized in AOCI, are not reflected in the table
above. The amount of cross-currency basis included in AOCI was $(19) million and $(70) million for the years ended December 31, 2024 and 2023, respectively.
(4)
Amounts related to the forward points (i.e., the spot-forward difference) that are excluded from the assessment of hedge effectiveness and are generally reflected
directly in earnings under the mark-to-market approach or recorded in AOCI under the amortization approach. The year ended December 31, 2024 includes gain
(loss) of approximately $321 million and $75 million under the mark-to-market approach and amortization approach, respectively. The year ended December 31,
2023 includes gain (loss) of approximately $284 million and $28 million under the mark-to-market approach and amortization approach, respectively.
262
Cumulative Basis Adjustment
The table below presents the carrying amount of Citi’s hedged
assets and liabilities under qualifying fair value hedges at
December 31, 2024 and 2023, along with the cumulative basis
adjustments included in the carrying value of those hedged
assets and liabilities that would reverse through earnings in
future periods.
Balance sheet line item in which
hedged item is recorded (in millions of dollars)
Carrying amount of
hedged asset/
liability(1)
Cumulative basis adjustment increasing
(decreasing) the carrying amount
Active
De-designated
As of December 31, 2024
Debt securities AFS—specifically hedged(2)
$
55,786 $
(348) $
(100)
Debt securities AFS—portfolio-layer method(2)(3)
28,554
(193)
(67)
Consumer loans—portfolio-layer method(4)
53,700
(224)
—
Corporate loans—portfolio-layer method(5)
4,269
(72)
(12)
Long-term debt
147,910
(1,051)
(4,499)
As of December 31, 2023
Debt securities AFS—specifically hedged(2)
$
83,243 $
(1,173) $
(231)
Debt securities AFS—portfolio-layer method(2)(3)
28,643
248
(51)
Corporate loans—portfolio-layer method(5)
4,968
93
(3)
Long-term debt
141,449
(908)
(5,160)
(1)
Excludes physical commodities inventories with a carrying value of approximately $11.4 billion and $8 billion as of December 31, 2024 and 2023, respectively,
which includes cumulative basis adjustments of approximately $0.8 billion and $1.2 billion, respectively, for active hedges.
(2)
Carrying amount represents the amortized cost basis of the hedged securities or portfolio layers.
(3)
The Company designated approximately $12.9 billion and $14.0 billion as the hedged amount in the portfolio-layer hedging relationship as of December 31, 2024
and 2023, respectively.
(4)
The Company designated approximately $17.0 billion as the hedged amount in the portfolio-layer hedging relationship as of December 31, 2024.
(5)
The Company designated approximately $3.0 billion and $3.6 billion as the hedged amount in the portfolio-layer hedging relationship as of December 31, 2024
and 2023, respectively.
263
Cash Flow Hedges
The pretax change in AOCI from cash flow hedges is presented below:
In millions of dollars
2024
2023
2022
Amount of gain (loss) recognized in AOCI on
derivatives
Interest rate contracts
$
476 $
(434) $
(3,640)
Foreign exchange contracts
(7)
13
34
Total gain (loss) recognized in AOCI
$
469 $
(421) $
(3,606)
Other
revenue
Net interest
income
Other
revenue
Net interest
income
Other
revenue
Net interest
income
Amount of gain (loss) reclassified from AOCI to
earnings(1)
Interest rate contracts
$
— $
(1,027) $
— $
(1,897) $
— $
(125)
Foreign exchange contracts
(3)
—
(4)
—
(4)
—
Total gain (loss) reclassified from AOCI into earnings
$
(3) $
(1,027) $
(4) $
(1,897) $
(4) $
(125)
Net pretax change in cash flow hedges included
within AOCI
$
1,499
$
1,480
$
(3,477)
(1)
All amounts reclassified into earnings for interest rate contracts are included in Interest income/Interest expense (Net interest income). For all other hedges, the
amounts reclassified to earnings are included primarily in Other revenue and Net interest income in the Consolidated Statement of Income.
The net gain (loss) associated with cash flow hedges
expected to be reclassified from AOCI within 12 months of
December 31, 2024 is approximately $(0.5) billion. The
maximum length of time over which forecasted cash flows are
hedged is 14 years.
The after-tax impact of cash flow hedges on AOCI is
presented in Note 21.
264
Net Investment Hedges
The pretax gain (loss) recorded in CTA within AOCI, related
to net investment hedges, was $2.8 billion, $(1.4) billion and
$370 million for the years ended December 31, 2024, 2023
and 2022, respectively. The year ended December 31, 2022
includes a $36 million pretax loss related to net investment
hedges, which were reclassified from AOCI into earnings
(recorded in Other revenue).
Credit Derivatives
Citi is a market maker and trades a range of credit derivatives.
Through these contracts, Citi either purchases or writes
protection on either a single name or a portfolio of reference
credits. Citi also uses credit derivatives to help mitigate credit
risk in its corporate and consumer loan portfolios and other
cash positions and to facilitate client transactions.
Citi manages counterparty credit risk arising from credit
derivative contracts primarily through master netting
agreements, collateral agreements and daily margin settlement
requirements. A majority of Citi’s top 15 counterparties (by
receivable balance owed to Citi) are central clearing houses,
banks, financial institutions or other dealers. Contracts with
these counterparties do not include ratings-based termination
events. However, counterparty ratings downgrades may have
an incremental effect by lowering the threshold at which Citi
may call for additional collateral.
The range of credit derivatives entered into includes credit
default swaps, total return swaps, credit options and credit-
linked notes.
A credit default swap is a contract in which, for a fee, a
protection seller agrees to reimburse a protection buyer for any
losses that occur due to a predefined credit event on a
reference entity. These credit events are defined by the terms
of the derivative contract and the reference entity and are
generally limited to the market standard of failure to pay on
indebtedness and bankruptcy of the reference entity and, in a
more limited range of transactions, debt restructuring. Credit
derivative transactions that reference emerging market entities
also typically include additional credit events to cover the
acceleration of indebtedness and the risk of repudiation or a
payment moratorium. In certain transactions, protection may
be provided on a portfolio of reference entities or asset-backed
securities. If there is no credit event, as defined by the specific
derivative contract, then the protection seller makes no
payments to the protection buyer and receives only the
contractually specified fee. However, if a credit event occurs
as defined in the specific derivative contract sold, the
protection seller will be required to make a payment to the
protection buyer. Under certain contracts, the seller of
protection may not be required to make a payment until a
specified amount of losses has occurred with respect to the
portfolio and/or may only be required to pay for losses up to a
specified amount.
A total return swap typically transfers the total economic
performance of a reference asset, which includes all associated
cash flows, as well as capital appreciation or depreciation. The
protection buyer receives a floating rate of interest and any
depreciation on the reference asset from the protection seller
and, in return, the protection seller receives the cash flows
associated with the reference asset plus any appreciation.
Thus, according to the total return swap agreement, the
protection seller will be obligated to make a payment any time
the floating interest rate payment plus any depreciation of the
reference asset exceeds the cash flows associated with the
underlying asset. A total return swap may terminate upon a
default of the reference asset or a credit event with respect to
the reference entity, subject to the provisions of the related
total return swap agreement between the protection seller and
the protection buyer.
A credit option is a credit derivative that allows investors
to trade or hedge changes in the credit quality of a reference
entity. For example, in a credit spread option, the option writer
assumes the obligation to purchase or sell credit protection on
the reference entity at a specified “strike” spread level. The
option purchaser buys the right to sell credit default protection
on the reference entity to, or purchase it from, the option
writer at the strike spread level. The payments on credit spread
options depend either on a particular credit spread or the price
of the underlying credit-sensitive asset or other reference
entity. The options usually terminate if a credit event occurs
with respect to the underlying reference entity.
A credit-linked note is a form of credit derivative
structured as a debt security with an embedded credit default
swap. The purchaser of the note effectively provides credit
protection to the issuer by agreeing to receive a return that
could be negatively affected by credit events on the underlying
reference entity. If the reference entity defaults, the note may
be cash settled or physically settled by delivery of a debt
security of the reference entity. Thus, the maximum amount of
the note purchaser’s exposure is the amount paid for the
credit-linked note.
265
The following tables summarize the key characteristics of Citi’s credit derivatives portfolio by reference entity and derivative form:
Fair values
Notionals
In millions of dollars at December 31, 2024
Receivable(1)
Payable(2)
Protection
purchased
Protection
sold
By instrument
Credit default swaps and options
$
6,765 $
6,545 $
486,901 $
431,005
Total return swaps and other
1,950
708
44,528
8,141
Total by instrument
$
8,715 $
7,253 $
531,429 $
439,146
By rating of reference entity
Investment grade
$
4,578 $
3,450 $
405,271 $
350,124
Non-investment grade
4,137
3,803
126,158
89,022
Total by rating of reference entity
$
8,715 $
7,253 $
531,429 $
439,146
By maturity
Within 1 year
$
1,606 $
1,166 $
140,541 $
118,885
From 1 to 5 years
5,625
4,906
342,608
295,503
After 5 years
1,484
1,181
48,280
24,758
Total by maturity
$
8,715 $
7,253 $
531,429 $
439,146
(1)
The fair value amount receivable is composed of $3,864 million under protection purchased and $4,851 million under protection sold.
(2)
The fair value amount payable is composed of $5,403 million under protection purchased and $1,850 million under protection sold.
Fair values
Notionals
In millions of dollars at December 31, 2023
Receivable(1)
Payable(2)
Protection
purchased
Protection
sold
By instrument
Credit default swaps and options
$
7,686 $
7,243 $
539,522 $
491,514
Total return swaps and other
653
839
28,105
5,185
Total by instrument
$
8,339 $
8,082 $
567,627 $
496,699
By rating of reference entity
Investment grade
$
4,282 $
4,138 $
444,989 $
393,115
Non-investment grade
4,057
3,944
122,638
103,584
Total by rating of reference entity
$
8,339 $
8,082 $
567,627 $
496,699
By maturity
Within 1 year
$
986 $
1,713 $
155,910 $
128,874
From 1 to 5 years
5,816
4,939
366,156
337,583
After 5 years
1,537
1,430
45,561
30,242
Total by maturity
$
8,339 $
8,082 $
567,627 $
496,699
(1)
The fair value amount receivable is composed of $2,770 million under protection purchased and $5,569 million under protection sold.
(2)
The fair value amount payable is composed of $6,097 million under protection purchased and $1,985 million under protection sold.
Fair values included in the above tables are prior to
application of any netting agreements and cash collateral. For
notional amounts, there is generally a difference between the
total notional amounts of protection purchased and sold, and
Citi may hold the reference assets directly rather than entering
into offsetting credit derivative contracts as and when desired.
The open risk exposures from credit derivative contracts are
largely matched after certain cash positions in reference assets
are considered and after notional amounts are adjusted, either
to a duration-based equivalent basis or to reflect the level of
subordination in tranched structures. The ratings of the credit
derivatives portfolio presented in the tables and used to
evaluate payment/performance risk are based on the assigned
internal or external ratings of the reference asset or entity.
Where external ratings are used, investment-grade ratings are
considered to be “Baa/BBB” and above, while anything below
is considered non-investment grade. Citi’s internal ratings are
in line with the related external rating system.
Citigroup evaluates the payment/performance risk of the
credit derivatives for which it stands as a protection seller
based on the credit rating assigned to the underlying reference
credit. Credit derivatives written on an underlying non-
investment-grade reference entity represent greater payment
risk to the Company. The non-investment-grade category in
the table above also includes credit derivatives where the
underlying reference entity has been downgraded subsequent
to the inception of the derivative.
266
The maximum potential amount of future payments under
credit derivative contracts presented in the table above is
based on the notional value of the derivatives. The Company
believes that the notional amount for credit protection sold is
not representative of the actual loss exposure based on
historical experience. This amount has not been reduced by the
value of the reference assets and the related cash flows. In
accordance with most credit derivative contracts, should a
credit event occur, the Company usually is liable for the
difference between the protection sold and the value of the
reference assets. Furthermore, the notional amount for credit
protection sold has not been reduced for any cash collateral
paid to a given counterparty, as such payments would be
calculated after netting all derivative exposures, including any
credit derivatives with that counterparty in accordance with a
related master netting agreement. Due to such netting
processes, determining the amount of collateral that
corresponds to credit derivative exposures alone is not
possible. The Company actively monitors open credit-risk
exposures and manages this exposure by using a variety of
strategies, including purchased credit derivatives, cash
collateral or direct holdings of the referenced assets. This risk
mitigation activity is not captured in the table above.
Credit Risk-Related Contingent Features in Derivatives
Certain derivative instruments contain provisions that require
the Company to either post additional collateral or
immediately settle any outstanding liability balances upon the
occurrence of a specified event related to the credit risk of the
Company. These events, which are defined by the existing
derivative contracts, are primarily downgrades in the credit
ratings of the Company and its affiliates.
The fair value (excluding CVA) of all derivative
instruments with credit risk-related contingent features that
were in a net liability position at December 31, 2024 and 2023
was $15 billion and $15 billion, respectively. The Company
posted $13 billion and $12 billion as collateral for this
exposure in the normal course of business as of December 31,
2024 and 2023, respectively.
A downgrade could trigger additional collateral or cash
settlement requirements for the Company and certain
affiliates. In the event that Citigroup and Citibank were
downgraded a single notch by all three major rating agencies
as of December 31, 2024, the Company could be required to
post an additional $0.2 billion as either collateral or settlement
of the derivative transactions. In addition, the Company could
be required to segregate with third-party custodians collateral
previously received from existing derivative counterparties in
an amount of less than $1 million upon the single notch
downgrade, resulting in aggregate cash obligations and
collateral requirements of approximately $0.2 billion.
Derivatives Accompanied by Financial Asset Transfers
The Company executes total return swaps that provide it with
synthetic exposure to substantially all of the economic return
of the securities or other financial assets referenced in the
contract. In certain cases, the derivative transaction is
accompanied by the Company’s transfer of the referenced
financial asset to the derivative counterparty, most typically in
response to the derivative counterparty’s desire to hedge, in
whole or in part, its synthetic exposure under the derivative
contract by holding the referenced asset in funded form. In
certain jurisdictions these transactions qualify as sales,
resulting in derecognition of the securities transferred (see
Note 1 for further discussion of the related sale conditions for
transfers of financial assets). For a significant portion of the
transactions, the Company has also executed another total
return swap where the Company passes on substantially all of
the economic return of the referenced securities to a different
third party seeking the exposure. In those cases, the Company
is not exposed, on a net basis, to changes in the economic
return of the referenced securities.
These transactions generally involve the transfer of the
Company’s liquid government bonds, convertible bonds or
publicly traded corporate equity securities from the trading
portfolio and are executed with third-party financial
institutions. The accompanying derivatives are typically total
return swaps. The derivatives are cash settled and subject to
ongoing margin requirements.
When the conditions for sale accounting are met, the
Company reports the transfer of the referenced financial asset
as a sale and separately reports the accompanying derivative
transaction. These transactions generally do not result in a gain
or loss on the sale of the security, because the transferred
security was held at fair value in the Company’s trading
portfolio. For transfers of financial assets accounted for as a
sale by the Company, and for which the Company has retained
substantially all of the economic exposure to the transferred
asset through a total return swap executed with the same
counterparty in contemplation of the initial sale (and still
outstanding), the asset amounts derecognized and the gross
cash proceeds received as of the date of derecognition were
$6.2 billion and $4.3 billion as of December 31, 2024 and
2023, respectively.
At December 31, 2024, the fair value of these previously
derecognized assets was $5.8 billion. The fair value of the
total return swaps as of December 31, 2024 was $179 million
recorded as gross derivative assets and $29 million recorded as
gross derivative liabilities. At December 31, 2023, the fair
value of these previously derecognized assets was $4.3 billion,
and the fair value of the total return swaps was $121 million
recorded as gross derivative assets and $29 million recorded as
gross derivative liabilities.
The balances for the total return swaps are on a gross
basis, before the application of counterparty and cash
collateral netting, and are included primarily as equity
derivatives in the tabular disclosures in this Note.
267
25. CONCENTRATIONS OF CREDIT RISK
Concentrations of credit risk exist when changes in economic,
industry or geographic factors similarly affect groups of
counterparties whose aggregate credit exposure is material in
relation to Citigroup’s total credit exposure. Although
Citigroup’s portfolio of financial instruments is broadly
diversified along industry, product and geographic lines,
material transactions are completed with other financial
institutions, particularly in the securities trading, derivatives
and foreign exchange businesses.
In connection with the Company’s efforts to maintain a
diversified portfolio, the Company limits its exposure to any
one geographic region, country or individual creditor and
monitors this exposure on a continuous basis. At
December 31, 2024, Citigroup’s most significant
concentration of credit risk was in AFS and HTM securities
and Trading-related assets (trading securities) (collectively
referred to below as “securities exposure”) with the U.S.
government and its agencies, foreign governments, and states
and municipalities.
At December 31, 2024 and 2023, the Company’s
securities exposure to the U.S. government and its agencies
was $493 billion and $517 billion; to foreign governments was
$209 billion and $206 billion; and to states and municipalities
was $11 billion and $12 billion, respectively.
268
This page intentionally left blank.
269
26. FAIR VALUE MEASUREMENT
ASC 820-10, Fair Value Measurement, defines fair value,
establishes a consistent framework for measuring fair value
and requires disclosures about fair value measurements. Fair
value is defined as the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, and
therefore represents an exit price. Among other things, the
standard requires the Company to maximize the use of
observable inputs and minimize the use of unobservable inputs
when measuring fair value.
Under ASC 820-10, the probability of counterparty
default is factored into the valuation of derivatives and other
positions, and the impact of Citigroup’s own credit risk is
factored into the valuation of derivatives and other liabilities
that are measured at fair value.
Fair Value Hierarchy Principles
ASC 820-10 specifies a hierarchy of inputs based on whether
the inputs are observable or unobservable. Observable inputs
are developed using market data and reflect market participant
assumptions, while unobservable inputs reflect the Company’s
market assumptions. These two types of inputs have created
the following fair value hierarchy:
•
Level 1: Quoted prices for identical instruments in active
markets.
•
Level 2: Quoted prices for similar instruments in active
markets, quoted prices for identical or similar instruments
in markets that are not active and model-derived
valuations in which all significant inputs and value drivers
are observable in the market.
•
Level 3: Valuations derived from valuation techniques in
which one or more significant inputs or significant value
drivers are unobservable.
As required under the fair value hierarchy, the Company
considers relevant and observable market inputs in its
valuations where possible.
The fair value hierarchy classification approach typically
utilizes rules-based and data-driven criteria to determine
whether an instrument is classified as Level 1, Level 2 or
Level 3:
•
The determination of whether an instrument is quoted in
an active market and therefore considered a Level 1
instrument is based on the frequency of observed
transactions and the quality of independent market data
available on the measurement date.
•
A Level 2 classification is assigned where there is
observability of prices/market inputs to models, or where
any unobservable inputs are not significant to the
valuation. The determination of whether an input is
considered observable is based on the availability of
independent market data and its corroboration, for
example through observed transactions in the market.
•
Otherwise, an instrument is classified as Level 3.
Determination of Fair Value and Hierarchy Levels
For assets and liabilities carried at fair value, the Company
measures fair value using the procedures set out below,
irrespective of whether the assets and liabilities are measured
at fair value as a result of an election, a non-recurring lower-
of-cost-or-market (LOCOM) adjustment, or because they are
required to be measured at fair value.
When available, the Company uses quoted market prices
from active markets to determine fair value and classifies such
items as Level 1. In some specific cases where a market price
is available, the Company will apply practical expedients
(such as matrix pricing) to calculate fair value, in which case
the items may be classified as Level 2.
The Company may also apply a price-based methodology
that utilizes, where available, quoted prices or other market
information obtained from recent trading activity in positions
with the same or similar characteristics to the position being
valued. If relevant and observable prices are available, those
valuations may be classified as Level 2. However, when there
are one or more significant unobservable “price” inputs, those
valuations will be classified as Level 3. Furthermore, when a
quoted price is considered stale, a significant adjustment to the
price of a similar security is necessary to reflect differences in
the terms of the actual security being valued, or alternatively,
when prices from independent sources are insufficient to
corroborate a valuation, the “price” inputs are considered
unobservable and the fair value measurements are classified as
Level 3.
If quoted market prices are not available, fair value is
based upon internally developed valuation techniques that use,
where possible, current market-based parameters, such as
interest rates, currency rates and option volatilities. Items
valued using such internally generated valuation techniques
are classified according to the lowest level input or value
driver that is significant to the valuation. Thus, an item may be
classified as Level 3 even though there may be some
significant inputs that are readily observable.
Where internal valuation techniques are used to determine
fair value estimates, independent vendor or broker data is
utilized when possible. Vendor and broker valuations may be
based on a variety of inputs ranging from observed prices to
proprietary valuation models, and the Company assesses the
quality and relevance of this information in determining the
estimate of fair value. The following section describes the
valuation methodologies used by the Company to measure
various financial instruments at fair value. Where appropriate,
the description includes details of the valuation models, the
key inputs to those models and any significant assumptions.
Market Valuation Adjustments
Generally, the unit of account for a financial instrument is the
individual financial instrument. The Company applies market
valuation adjustments that are consistent with the unit of
account, which do not include adjustments due to the size of
the Company’s position, except as follows. ASC 820-10
permits an exception, through an accounting policy election, to
measure the fair value of a portfolio of financial assets and
financial liabilities on the basis of the net open risk position
when certain criteria are met. Citi has elected to measure
certain portfolios of financial instruments that meet those
270
criteria, such as derivatives, on the basis of the net open risk
position.
Valuation adjustments are applied to items classified as
Level 2 or Level 3 in the fair value hierarchy to ensure that the
fair value reflects the price at which the net open risk position
could be exited. These valuation adjustments are based on the
bid/offer spread for an instrument in the market. When Citi
has elected to measure certain portfolios of financial
investments, such as derivatives, on the basis of the net open
risk position, the valuation adjustment may take into account
the size of the position.
Credit valuation adjustments (CVA) and funding
valuation adjustments (FVA) are applied to certain over-the-
counter (OTC) derivative instruments where adjustments to
reflect counterparty credit risk, own credit risk and term
funding risk are required to estimate fair value. This
principally includes derivatives with a base valuation (e.g.,
discounted using overnight indexed swap (OIS)) requiring
adjustment for these effects, such as uncollateralized interest
rate swaps. The CVA represents a portfolio-level adjustment
to reflect the risk premium associated with the counterparty’s
(assets) or Citi’s (liabilities) non-performance risk.
The FVA represents a market funding risk premium
inherent in the uncollateralized portion of a derivative
portfolio and in certain collateralized derivative portfolios that
do not include standard credit support annexes (CSAs), such
as where the CSA does not permit the reuse of collateral
received. Citi’s FVA methodology leverages the existing CVA
methodology to estimate a funding exposure profile. The
calculation of this exposure profile considers collateral
agreements in which the terms do not permit the Company to
reuse the collateral received, including where counterparties
post collateral to third-party custodians. Citi’s CVA and FVA
methodologies consist of two steps:
•
First, the exposure profile for each counterparty is
determined using the terms of all individual derivative
positions, and a Monte Carlo simulation or other
quantitative analysis is used to generate a series of
expected cash flows at future points in time. The
calculation of this exposure profile considers the effect of
credit risk mitigants and sources of funding, including
pledged cash or other collateral and any legal right of
offset that exists with a counterparty through
arrangements such as netting agreements. Individual
derivative contracts that are subject to an enforceable
master netting agreement with a counterparty are
aggregated as a netting set for this purpose, since it is
those net cash flows that are subject to nonperformance
risk. This process identifies specific, point-in-time future
cash flows that are subject to nonperformance and term
funding risk, rather than using the current recognized net
asset or liability as a basis to measure the CVA and FVA.
•
Second, for CVA, market-based views of default
probabilities derived from observed credit spreads in the
credit default swap (CDS) market are applied to the
expected future cash flows determined in step one. Citi’s
own credit CVA is determined using Citi-specific CDS
spreads for the relevant tenor. Generally, counterparty
CVA is determined using CDS spread indices for each
credit rating and tenor. For certain identified netting sets
where individual analysis is practicable (e.g., exposures to
counterparties with liquid CDSs), counterparty-specific
CDS spreads are used. For FVA, a term structure of
spreads is applied to the expected funding exposures (e.g.,
the market liquidity spread used to represent the term
funding premium associated with certain OTC
derivatives).
The CVA and FVA are designed to incorporate a market
view of the credit and funding risk, respectively, inherent in
the derivative portfolio. However, most unsecured derivative
instruments are negotiated bilateral contracts and are not
commonly transferred to third parties. Derivative instruments
are normally settled contractually or, if terminated early, are
terminated at a value negotiated bilaterally between the
parties. Thus, the CVA and FVA may not be realized upon a
settlement or termination in the normal course of business. In
addition, all or a portion of these adjustments may be reversed
or otherwise adjusted in future periods in the event of changes
in the credit or funding risk associated with the derivative
instruments.
The table below summarizes the CVA and FVA applied
to the fair value of derivative instruments (recorded in Trading
account assets and Trading account liabilities on the
Consolidated Balance Sheet) at December 31, 2024 and 2023:
Credit and funding
valuation adjustments
contra-liability (contra-asset)
In millions of dollars
December 31,
2024
December 31,
2023
Counterparty CVA
$
(561) $
(580)
Asset FVA
(539)
(562)
Citigroup (own credit) CVA
346
381
Liability FVA
209
255
Total CVA and FVA—
derivative instruments
$
(545) $
(506)
271
The table below summarizes pretax gains (losses) related
to changes in CVA and FVA on derivative instruments, net of
hedges (recorded in Principal transactions revenue in the
Consolidated Statement of Income), and changes in debt
valuation adjustments (DVA) on Citi’s own fair value option
(FVO) liabilities (recorded in Other comprehensive income in
the Consolidated Statement of Comprehensive Income) for the
years indicated:
Credit/funding/debt valuation
adjustments gain (loss)
In millions of dollars
2024
2023
2022
Counterparty CVA
$
(63) $
(31) $
(227)
Asset FVA
68
64
(102)
Own credit CVA
(56)
(212)
157
Liability FVA
(46)
(23)
155
Total CVA and FVA—
derivative instruments
$
(97) $
(202) $
(17)
DVA related to own FVO
liabilities(1)
$
(573) $
(2,078) $
2,685
Total CVA, DVA and FVA
$
(670) $
(2,280) $
2,668
(1)
See Note 21.
Securities Purchased Under Agreements to Resell and
Securities Sold Under Agreements to Repurchase
As no quoted prices exist for these instruments, fair value is
determined using a discounted cash flow technique. Cash
flows are estimated based on the terms of the contract, taking
into account any embedded derivatives or other features.
These cash flows are discounted using interest rates
appropriate to the maturity of the instrument as well as the
nature of the underlying collateral. Generally, when such
instruments are recorded at fair value, they are classified
within Level 2 of the fair value hierarchy, as the inputs used in
the valuation are readily observable. However, certain long-
dated positions are classified within Level 3 of the fair value
hierarchy.
Trading Account Assets and Liabilities—Trading Securities
and Trading Loans
When available, the Company uses quoted market prices in
active markets to determine the fair value of trading securities;
such items are classified within Level 1 of the fair value
hierarchy. Examples include government securities and
exchange-traded equity securities.
For bonds and secondary market loans traded over the
counter, the Company generally determines fair value utilizing
various valuation techniques, including discounted cash flows,
price-based and internal models. Where internal valuation
techniques are used to determine fair value estimates, prices
from independent sources, including third-party vendors, are
utilized when possible. A price-based methodology utilizes,
where available, quoted prices or other market information
obtained from recent trading activity of instruments with
similar characteristics to the bond or loan being valued. The
yields used in discounted cash flow models are derived from
the same price information. Trading securities and loans
priced using such methods are generally classified as Level 2.
However, when the significant inputs to the valuation are
unobservable, or prices from independent sources are
insufficient to corroborate valuation, a loan or security is
generally classified as Level 3. Where internal valuation
techniques are used to determine fair value estimates, prices
from independent sources, including third-party vendors, are
utilized when possible.
When the Company’s principal exit market for a portfolio
of loans is through securitization, the Company uses the
securitization price as a key input into the fair value of the
loan portfolio. The securitization price is determined from the
assumed proceeds of a hypothetical securitization within the
current market environment. Where such a valuation approach
is possible, loan portfolios are typically classified within Level
2 of the fair value hierarchy.
For most of the subprime mortgage-backed security
(MBS) exposures, fair value is determined utilizing observable
transactions where available, or other valuation techniques
such as discounted cash flow analysis utilizing valuation
assumptions derived from similar, more observable securities
as market proxies. The valuation of certain asset-backed
security (ABS) collateralized debt obligation (CDO) positions
is inferred through the net asset value of the underlying assets
of the ABS CDO.
Trading Account Assets and Liabilities—Derivatives
Exchange-traded derivatives, measured at fair value using
quoted (i.e., exchange) prices in active markets, where
available, are classified as Level 1 within the fair value
hierarchy.
Derivatives without a quoted price in an active market and
derivatives executed over the counter are valued using internal
valuation techniques. These derivative instruments are
classified as either Level 2 or Level 3 depending on the
observability of the significant inputs to the valuation.
The valuation techniques depend on the type of derivative
and the nature of the underlying instrument. The principal
techniques used to value these instruments are discounted cash
flows and internal models, such as derivative pricing models
(e.g., Black-Scholes and Monte Carlo simulations).
The key inputs depend upon the type of derivative and the
nature of the underlying instrument and include interest rate
yield curves, foreign exchange rates, volatilities and
correlation.
Investments
The investments category includes available-for-sale debt and
marketable equity securities whose fair values are generally
determined by utilizing similar procedures described for
trading securities above or, in some cases, using vendor
pricing as the primary source.
Also included in investments are nonpublic investments in
private equity and real estate entities. Determining the fair
value of nonpublic securities involves a significant degree of
management judgment, as no quoted prices exist and such
securities are not generally traded. In addition, there may be
transfer restrictions on private equity securities. The
Company’s process for determining the fair value of such
securities utilizes commonly accepted valuation techniques,
including guideline public company analysis and comparable
272
transactions. In determining the fair value of nonpublic
securities, the Company also considers events such as a
proposed sale of the investee company, initial public offerings,
equity issuances or other observable transactions. Private
equity securities are generally classified within Level 3 of the
fair value hierarchy.
Mortgage Servicing Rights
The fair value of the mortgage servicing rights (MSRs),
included in Intangible assets, is primarily affected by changes
in prepayments of mortgages that result from shifts in
mortgage interest rates. Specifically, higher interest rates tend
to lead to declining prepayments, which causes the fair value
of the MSRs to increase. In managing this risk, Citigroup
economically hedges a significant portion of the value of its
MSRs through the use of interest rate derivative contracts,
forward purchase and sale commitments of mortgage-backed
securities and purchased securities, all classified as Trading
account assets.
See Note 23 for additional information on Citi’s MSRs.
Short-Term Borrowings and Long-Term Debt
Where fair value accounting has been elected, the fair value of
non-structured liabilities is determined by utilizing internal
models using the appropriate discount rate for the applicable
maturity. Such instruments are classified within Level 2 of the
fair value hierarchy when all significant inputs are readily
observable.
The Company determines the fair value of hybrid
financial instruments, including structured liabilities, using the
appropriate derivative valuation methodology (described
above in “Trading Account Assets and Liabilities—
Derivatives”) given the nature of the embedded risk profile.
Such instruments are classified within Level 2 or Level 3
depending on the observability of significant inputs to the
valuation.
273
Items Measured at Fair Value on a Recurring Basis
The following tables present for each of the fair value
hierarchy levels the Company’s assets and liabilities that are
measured at fair value on a recurring basis at December 31,
2024 and 2023. The Company may hedge positions that have
been classified in the Level 3 category with other financial
instruments (hedging instruments) that may be classified as
Level 3, but also with financial instruments classified as
Level 1 or Level 2. The effects of these hedges are presented
gross in the following tables:
Fair Value Levels
Assets
Securities borrowed and purchased under agreements to resell
$
— $
462,542 $
128 $
462,670 $ (321,815) $ 140,855
Trading non-derivative assets
Trading mortgage-backed securities
U.S. government-sponsored agency guaranteed
—
63,365
301
63,666
—
63,666
Residential
—
528
67
595
—
595
Commercial
—
631
36
667
—
667
Total trading mortgage-backed securities
$
— $
64,524 $
404 $
64,928 $
— $ 64,928
U.S. Treasury and federal agency securities
$
142,837 $
6,517 $
1 $
149,355 $
— $ 149,355
State and municipal
—
168
11
179
—
179
Foreign government
35,805
39,035
15
74,855
—
74,855
Corporate
1,197
13,474
269
14,940
—
14,940
Equity securities
41,163
7,479
166
48,808
—
48,808
Asset-backed securities
—
2,131
178
2,309
—
2,309
Other trading assets
—
26,441
333
26,774
—
26,774
Total trading non-derivative assets
$
221,002 $
159,769 $
1,377 $
382,148 $
— $ 382,148
Trading derivatives
Interest rate contracts
$
17 $
128,562 $
1,699 $
130,278
Foreign exchange contracts
—
215,330
715
216,045
Equity contracts
44
53,734
1,366
55,144
Commodity contracts
—
11,546
1,074
12,620
Credit derivatives
—
7,993
722
8,715
Total trading derivatives—before netting and collateral
$
61 $
417,165 $
5,576 $
422,802
Netting agreements
$ (334,900)
Netting of cash collateral received
(27,303)
Total trading derivatives—after netting and collateral
$
61 $
417,165 $
5,576 $
422,802 $ (362,203) $ 60,599
Investments
Mortgage-backed securities
U.S. government-sponsored agency guaranteed
$
— $
29,270 $
36 $
29,306 $
— $ 29,306
Residential
—
596
28
624
—
624
Commercial
—
1
—
1
—
1
Total investment mortgage-backed securities
$
— $
29,867 $
64 $
29,931 $
— $ 29,931
U.S. Treasury and federal agency securities
$
51,501 $
878 $
— $
52,379 $
— $ 52,379
State and municipal
—
1,230
428
1,658
—
1,658
Foreign government
62,106
71,241
12
133,359
— 133,359
Corporate
3,163
1,505
146
4,814
—
4,814
Marketable equity securities
130
7
14
151
—
151
Asset-backed securities
—
846
2
848
—
848
Other debt securities
—
3,881
6
3,887
—
3,887
Non-marketable equity securities(2)
—
—
404
404
—
404
Total investments
$
116,900 $
109,455 $
1,076 $
227,431 $
— $ 227,431
In millions of dollars at December 31, 2024
Level 1
Level 2
Level 3
Gross
inventory
Netting(1)
Net
balance
Table continues on the next page.
274
In millions of dollars at December 31, 2024
Level 1
Level 2
Level 3
Gross
inventory
Netting(1)
Net
balance
Loans
$
—
$
7,778
$ 262
$
8,040 $
— $
8,040
Mortgage servicing rights
—
—
760
760
—
760
Other financial assets
$
5,373
$
9,424
$
15
$
14,812 $
— $ 14,812
Total assets
$ 343,336
$ 1,166,133
$ 9,194
$ 1,518,663 $ (684,018) $ 834,645
Total as a percentage of gross assets(3)
22.6 %
76.8 %
0.6 %
Liabilities
Deposits
$
—
$
3,569
$
39
$
3,608 $
— $
3,608
Securities loaned and sold under agreements to repurchase
—
260,286
390
260,676 (211,522)
49,154
Trading account liabilities
Securities sold, not yet purchased
72,324
13,184
28
85,536
—
85,536
Other trading liabilities
—
12
—
12
—
12
Total trading account liabilities
$ 72,324
$ 13,196
$
28
$
85,548 $
— $ 85,548
Trading derivatives
Interest rate contracts
$
6
$ 120,097
$ 2,029
$
122,132
Foreign exchange contracts
—
205,487
530
206,017
Equity contracts
40
58,642
3,054
61,736
Commodity contracts
—
13,960
670
14,630
Credit derivatives
—
6,635
618
7,253
Total trading derivatives—before netting and collateral
$
46
$ 404,821
$ 6,901
$
411,768
Netting agreements
$ (334,900)
Netting of cash collateral paid
(28,570)
Total trading derivatives—after netting and collateral
$
46
$ 404,821
$ 6,901
$
411,768 $ (363,470) $ 48,298
Short-term borrowings
$
—
$ 12,187
$ 297
$
12,484 $
— $ 12,484
Long-term debt
—
91,619
21,100
112,719
— 112,719
Other financial liabilities
$
4,478
$
744
$
—
$
5,222 $
— $
5,222
Total liabilities
$ 76,848
$ 786,422
$ 28,755
$
892,025 $ (574,992) $ 317,033
Total as a percentage of gross liabilities(3)
8.6 %
88.2 %
3.2 %
(1)
Represents netting of (i) the amounts due under securities purchased under agreements to resell and the amounts owed under securities sold under agreements to
repurchase and (ii) derivative exposures covered by a qualifying master netting agreement and cash collateral offsetting.
(2)
Amounts exclude $23 million of investments measured at net asset value (NAV) in accordance with ASU 2015-07, Fair Value Measurement (Topic 820):
Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).
(3)
Because the amount of the cash collateral paid/received has not been allocated to the Level 1, 2 and 3 subtotals, these percentages are calculated based on total
assets and liabilities measured at fair value on a recurring basis, excluding the cash collateral paid/received on derivatives.
275
Fair Value Levels
In millions of dollars at December 31, 2023
Level 1
Level 2
Level 3
Gross
inventory
Netting(1)
Net
balance
Assets
Securities borrowed and purchased under agreements to resell
$
— $
453,715 $
139 $
453,854 $ (247,795) $ 206,059
Trading non-derivative assets
Trading mortgage-backed securities
U.S. government-sponsored agency guaranteed
—
79,795
581
80,376
— 80,376
Residential
1
597
116
714
—
714
Commercial
—
464
202
666
—
666
Total trading mortgage-backed securities
$
1 $
80,856 $
899 $
81,756 $
— $ 81,756
U.S. Treasury and federal agency securities
$ 112,851 $
2,398 $
7 $
115,256 $
— $ 115,256
State and municipal
—
594
3
597
—
597
Foreign government
44,203
28,238
54
72,495
— 72,495
Corporate
1,858
16,716
500
19,074
— 19,074
Equity securities
32,966
12,135
292
45,393
— 45,393
Asset-backed securities
—
1,223
531
1,754
—
1,754
Other trading assets
97
16,784
833
17,714
— 17,714
Total trading non-derivative assets
$ 191,976 $
158,944 $
3,119 $
354,039 $
— $ 354,039
Trading derivatives
Interest rate contracts
$
49 $
156,307 $
2,138 $
158,494
Foreign exchange contracts
—
158,672
1,022
159,694
Equity contracts
8
41,870
1,400
43,278
Commodity contracts
2
16,456
1,111
17,569
Credit derivatives
—
7,564
775
8,339
Total trading derivatives—before netting and collateral
$
59 $
380,869 $
6,446 $
387,374
Netting agreements
$ (308,431)
Netting of cash collateral received
(21,226)
Total trading derivatives—after netting and collateral
$
59 $
380,869 $
6,446 $
387,374 $ (329,657) $ 57,717
Investments
Mortgage-backed securities
U.S. government-sponsored agency guaranteed
$
— $
29,640 $
75 $
29,715 $
— $ 29,715
Residential
—
307
116
423
—
423
Commercial
—
1
—
1
—
1
Total investment mortgage-backed securities
$
— $
29,948 $
191 $
30,139 $
— $ 30,139
U.S. Treasury and federal agency securities
$
80,062 $
299 $
— $
80,361 $
— $ 80,361
State and municipal
—
1,589
542
2,131
—
2,131
Foreign government
60,133
70,871
194
131,198
— 131,198
Corporate
2,680
2,370
362
5,412
—
5,412
Marketable equity securities
159
72
27
258
—
258
Asset-backed securities
—
938
—
938
—
938
Other debt securities
—
6,757
—
6,757
—
6,757
Non-marketable equity securities(2)
—
—
483
483
—
483
Total investments
$ 143,034 $
112,844 $
1,799 $
257,677 $
— $ 257,677
Table continues on the next page.
276
In millions of dollars at December 31, 2023
Level 1
Level 2
Level 3
Gross
inventory
Netting(1)
Net
balance
Loans
$
—
$
7,167
$ 427
$
7,594 $
— $ 7,594
Mortgage servicing rights
—
—
691
691
—
691
Other financial assets
$
4,677
$
8,321
$
30
$
13,028 $
— $ 13,028
Total assets
$ 339,746
$ 1,121,860
$ 12,651
$ 1,474,257 $ (577,452) $ 896,805
Total as a percentage of gross assets(3)
23.0 %
76.1 %
0.9 %
Liabilities
Deposits
$
—
$
2,411
$
29
$
2,440 $
— $ 2,440
Securities loaned and sold under agreements to repurchase
—
228,048
390
228,438 (165,953) 62,485
Trading account liabilities
Securities sold, not yet purchased
91,163
13,460
35
104,658
— 104,658
Other trading liabilities
—
8
—
8
—
8
Total trading account liabilities
$ 91,163
$ 13,468
$
35
$
104,666 $
— $ 104,666
Trading derivatives
Interest rate contracts
$
49
$ 149,914
$ 3,223
$
153,186
Foreign exchange contracts
—
156,474
727
157,201
Equity contracts
18
44,894
3,034
47,946
Commodity contracts
—
17,964
832
18,796
Credit derivatives
—
7,234
848
8,082
Total trading derivatives—before netting and collateral
$
67
$ 376,480
$ 8,664
$
385,211
Netting agreements
$ (308,431)
Netting of cash collateral paid
(26,101)
Total trading derivatives—after netting and collateral
$
67
$ 376,480
$ 8,664
$
385,211 $ (334,532) $ 50,679
Short-term borrowings
$
—
$
6,064
$
481
$
6,545 $
— $ 6,545
Long-term debt
—
77,958
38,380
116,338
— 116,338
Other financial liabilities
$
4,298
$
130
$
6
$
4,434 $
— $ 4,434
Total liabilities
$ 95,528
$ 704,559
$ 47,985
$
848,072 $ (500,485) $ 347,587
Total as a percentage of gross liabilities(3)
11.3 %
83.0 %
5.7 %
(1)
Represents netting of (i) the amounts due under securities purchased under agreements to resell and the amounts owed under securities sold under agreements to
repurchase and (ii) derivative exposures covered by a qualifying master netting agreement and cash collateral offsetting.
(2)
Amounts exclude $25 million of investments measured at NAV in accordance with ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for
Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).
(3)
Because the amount of the cash collateral paid/received has not been allocated to the Level 1, 2 and 3 subtotals, these percentages are calculated based on total
assets and liabilities measured at fair value on a recurring basis, excluding the cash collateral paid/received on derivatives.
277
Changes in Level 3 Fair Value Category
The following tables present the changes in the Level 3 fair
value category for the years ended December 31, 2024 and
2023. The gains and losses presented below include changes in
the fair value related to both observable and unobservable
inputs.
The Company often hedges positions with offsetting
positions that are classified in a different level. For example,
the gains and losses for assets and liabilities in the Level 3
category presented in the tables below do not reflect the effect
of offsetting losses and gains on hedging instruments that may
be classified in the Level 1 and Level 2 categories. In addition,
the Company hedges items classified in the Level 3 category
with instruments also classified in Level 3 of the fair value
hierarchy. The hedged items and related hedges are presented
gross in the following tables:
Level 3 Fair Value Rollforward
Net realized/unrealized
gains (losses) included in(1)
Transfers
Unrealized
gains
(losses)
still held(3)
In millions of dollars
Dec. 31,
2023
Principal
transactions
Other(1)(2)
into
Level 3
out of
Level 3
Purchases
Issuances
Sales
Settlements
Dec. 31,
2024
Assets
Securities borrowed and
purchased under
agreements to resell
$
139 $
(4) $
— $
— $
— $
111 $
— $
— $
(118) $
128 $
(4)
Trading non-derivative
assets
Trading mortgage-
backed securities
U.S. government-
sponsored agency
guaranteed
581
(50)
—
456
(856)
667
—
(497)
—
301
(18)
Residential
116
(8)
—
84
(79)
159
—
(205)
—
67
(1)
Commercial
202
17
—
56
(189)
162
—
(212)
—
36
(4)
Total trading mortgage-
backed securities
$
899 $
(41) $
— $
596 $ (1,124) $
988 $
— $
(914) $
— $
404 $
(23)
U.S. Treasury and
federal agency
securities
$
7 $
4 $
— $
1 $
(1) $
— $
— $
— $
(10) $
1 $
—
State and municipal
3
2
—
20
(10)
—
—
(4)
—
11
1
Foreign government
54
(9)
—
21
(49)
192
—
(194)
—
15
—
Corporate
500
155
—
188
(484)
587
—
(669)
(8)
269
97
Marketable equity
securities
292
5
—
239
(75)
169
—
(464)
—
166
(8)
Asset-backed securities
531
(53)
—
54
(210)
273
—
(417)
—
178
(21)
Other trading assets
833
174
—
200
(440)
377
34
(829)
(16)
333
42
Total trading non-
derivative assets
$ 3,119 $
237 $
— $ 1,319 $ (2,393) $
2,586 $
34 $ (3,491) $
(34) $ 1,377 $
88
Trading derivatives, net(4)
Interest rate contracts
$ (1,085) $
(875) $
— $
275 $
462 $
94 $
19 $
(35) $
815 $
(330) $
(381)
Foreign exchange
contracts
295
600
—
100
(485)
13
—
(197)
(141)
185
(474)
Equity contracts
(1,634)
68
—
(135)
1,022
(954)
—
(77)
22
(1,688)
(459)
Commodity contracts
279
460
—
46
(210)
(104)
—
(66)
(1)
404
512
Credit derivatives
(73)
155
—
(20)
29
(4)
—
—
17
104
81
Total trading derivatives,
net(4)
$ (2,218) $
408 $
— $
266 $
818 $
(955) $
19 $
(375) $
712 $ (1,325) $
(721)
Table continues on the next page.
278
Net realized/unrealized
gains (losses) included in(1)
Transfers
Unrealized
gains
(losses)
still held(3)
In millions of dollars
Dec. 31,
2023
Principal
transactions
Other(1)(2)
into
Level 3
out of
Level 3
Purchases
Issuances
Sales
Settlements
Dec. 31,
2024
Investments
Mortgage-backed
securities
U.S. government-
sponsored agency
guaranteed
$
75 $
— $
4 $
3 $
— $
7 $
— $
(53) $
— $
36 $
5
Residential
116
—
(3)
5
(90)
—
—
—
—
28
(3)
Commercial
—
—
—
—
—
—
—
—
—
—
—
Total investment
mortgage-backed
securities
$
191 $
— $
1 $
8 $
(90) $
7 $
— $
(53) $
— $
64 $
2
U.S. Treasury and
federal agency
securities
$
— $
— $
— $
— $
— $
— $
— $
— $
— $
— $
—
State and municipal
542
—
(31)
—
(8)
14
—
(89)
—
428
(14)
Foreign government
194
—
(16)
8
(174)
36
—
(36)
—
12
(3)
Corporate
362
—
(24)
78
(348)
183
—
(105)
—
146
(7)
Marketable equity
securities
27
—
(13)
—
—
—
—
—
—
14
—
Asset-backed securities
—
—
—
2
—
3
—
(3)
—
2
—
Other debt securities
—
—
—
—
—
6
—
—
—
6
—
Non-marketable equity
securities
483
—
(3)
—
—
187
—
(263)
—
404
(7)
Total investments
$ 1,799 $
— $
(86) $
96 $
(620) $
436 $
— $ (549) $
— $ 1,076 $
(29)
Loans
$
427 $
— $
(85) $
664 $
(896) $
— $
250 $
— $
(98) $
262 $
(6)
Mortgage servicing rights
691
—
37
—
—
—
104
—
(72)
760
44
Other financial assets
30
—
(1)
—
—
5
51
(5)
(65)
15
(1)
Liabilities
Deposits
$
29 $
1 $
4 $
51 $
(40) $
— $
39 $
— $
(35) $
39 $
1
Securities loaned and sold
under agreements to
repurchase
390
5
—
—
—
976
—
—
(971)
390
5
Trading account liabilities
Securities sold, not yet
purchased
35
(14)
—
35
(30)
116
—
—
(142)
28
5
Other trading liabilities
—
—
—
—
—
—
—
—
—
—
—
Short-term borrowings
481
(94)
—
88
(560)
1
479
—
(286)
297
(37)
Long-term debt
38,380
1,757
—
4,626 (22,923)
—
5,995
—
(3,221) 21,100
1,731
Other financial liabilities
measured on a recurring
basis
6
—
—
—
—
—
5
—
(11)
—
—
(1)
Net realized/unrealized gains (losses) are presented as increase (decrease) to Level 3 assets, and as (increase) decrease to Level 3 liabilities. Changes in fair value
of available-for-sale debt securities are recorded in AOCI, unless related to credit impairment, while gains and losses from sales are recorded in Realized gains
(losses) from sales of investments in the Consolidated Statement of Income.
(2)
Unrealized gains (losses) on MSRs are recorded in Other revenue in the Consolidated Statement of Income.
(3)
Represents the amount of total gains or losses for the period, included in earnings (and AOCI for changes in fair value of available-for-sale debt securities and
DVA on fair value option liabilities), attributable to the change in fair value relating to assets and liabilities classified as Level 3 that are still held at December 31,
2024.
(4)
Total Level 3 trading derivative assets and liabilities have been netted in these tables for presentation purposes only.
279
Net realized/unrealized
gains (losses) included in(1)
Transfers
Unrealized
gains
(losses)
still held(3)
In millions of dollars
Dec. 31,
2022
Principal
transactions
Other(1)(2)
into
Level 3
out of
Level 3
Purchases
Issuances
Sales
Settlements
Dec. 31,
2023
Assets
Securities borrowed and
purchased under agreements
to resell
$
149 $
8 $
— $
— $
(2) $
308 $
— $
— $
(324) $
139 $
13
Trading non-derivative
assets
Trading mortgage-backed
securities
U.S. government-
sponsored agency
guaranteed
600
7
—
396
(543)
616
—
(495)
—
581
14
Residential
166
2
—
103
(110)
197
—
(242)
—
116
(20)
Commercial
145
(25)
—
202
(88)
118
—
(150)
—
202
(15)
Total trading mortgage-
backed securities
$
911 $
(16) $
— $
701 $
(741) $
931 $
— $
(887) $
— $
899 $
(21)
U.S. Treasury and federal
agency securities
$
1 $
(4) $
— $
10 $
— $
— $
— $
— $
— $
7 $
—
State and municipal
7
(3)
—
21
(2)
—
—
(20)
—
3
—
Foreign government
119
(18)
—
8
(66)
174
—
(163)
—
54
(1)
Corporate
394
289
—
285
(691)
1,163
—
(940)
—
500
(6)
Marketable equity
securities
192
68
—
99
(39)
146
—
(174)
—
292
62
Asset-backed securities
668
25
—
105
(138)
801
—
(930)
—
531
12
Other trading assets
648
184
—
609
(437)
919
2
(1,086)
(6)
833
28
Total trading non-derivative
assets
$ 2,940 $
525 $
— $ 1,838 $ (2,114) $
4,134 $
2 $ (4,200) $
(6) $ 3,119 $
74
Trading derivatives, net(4)
Interest rate contracts
$
355 $
(1,588) $
— $
(172) $
(314) $
21 $
6 $
58 $
549 $ (1,085) $
(1,481)
Foreign exchange
contracts
50
412
—
91
46
135
—
(107)
(332)
295
(144)
Equity contracts
(1,104)
(672)
—
32
858
(819)
—
(114)
185
(1,634)
(927)
Commodity contracts
278
324
—
235
77
(389)
—
(34)
(212)
279
(284)
Credit derivatives
(157)
(220)
—
(1)
307
(8)
—
—
6
(73)
(54)
Total trading derivatives,
net(4)
$
(578) $
(1,744) $
— $
185 $
974 $
(1,060) $
6 $
(197) $
196 $ (2,218) $
(2,890)
Investments
Mortgage-backed
securities
U.S. government-
sponsored agency
guaranteed
$
30 $
— $
4 $
— $
(3) $
47 $
— $
(3) $
— $
75 $
2
Residential
41
—
1
—
—
90
—
(16)
—
116
1
Commercial
—
—
—
—
—
—
—
—
—
—
—
Total investment
mortgage-backed
securities
$
71 $
— $
5 $
— $
(3) $
137 $
— $
(19) $
— $
191 $
3
U.S. Treasury and federal
agency securities
$
— $
— $
(1) $
— $
(20) $
51 $
— $
(30) $
— $
— $
—
State and municipal
586
—
27
2
(86)
64
—
(51)
—
542
31
Foreign government
608
—
(13)
27
(327)
850
—
(951)
—
194
(3)
Corporate
343
—
(2)
49
(61)
131
—
(98)
—
362
(4)
Marketable equity
securities
10
—
17
—
—
—
—
—
—
27
—
Asset-backed securities
1
—
(1)
30
—
—
—
(30)
—
—
—
Other debt securities
—
—
1
—
(63)
62
—
—
—
—
—
Non-marketable equity
securities
430
—
31
8
—
42
—
(28)
—
483
82
Total investments
$ 2,049 $
— $
64 $
116 $
(560) $
1,337 $
— $ (1,207) $
— $ 1,799 $
109
Table continues on the next page.
280
Net realized/unrealized
gains (losses) included in(1)
Transfers
Unrealized
gains
(losses)
still held(3)
In millions of dollars
Dec. 31,
2022
Principal
transactions
Other(1)(2)
into
Level 3
out of
Level 3
Purchases
Issuances
Sales
Settlements
Dec. 31,
2023
Loans
$ 1,361 $
— $
(236) $
32 $
(309) $
— $
241 $
— $
(662) $
427 $
(16)
Mortgage servicing rights
665
—
28
—
—
—
66
—
(68)
691
20
Other financial assets
57
—
(24)
—
(2)
50
22
(32)
(41)
30
—
Liabilities
Deposits
$
15 $
(7) $
(4) $
50 $
(118) $
— $
84 $
— $
(13) $
29 $
9
Securities loaned and sold
under agreements to
repurchase
1,031
(5)
—
—
(24)
1,335
61
—
(2,018)
390
—
Trading account liabilities
Securities sold, not yet
purchased
50
(30)
—
22
(49)
123
—
—
(141)
35
(13)
Other trading liabilities
3
1
—
4
(2)
3
—
—
(7)
—
—
Short-term borrowings
38
44
—
62
(31)
2
488
—
(34)
481
(27)
Long-term debt
36,117
(1,039)
—
4,913 (10,215)
—
9,811
—
(3,285) 38,380
(2,644)
Other financial liabilities
2
—
6
—
(1)
6
49
(20)
(24)
6
—
(1)
Net realized/unrealized gains (losses) are presented as increase (decrease) to Level 3 assets, and as (increase) decrease to Level 3 liabilities. Changes in fair value
of available-for-sale debt securities are recorded in AOCI, unless related to credit impairment, while gains and losses from sales are recorded in Realized gains
(losses) from sales of investments in the Consolidated Statement of Income.
(2)
Unrealized gains (losses) on MSRs are recorded in Other revenue in the Consolidated Statement of Income.
(3)
Represents the amount of total gains or losses for the period, included in earnings (and AOCI for changes in fair value of available-for-sale debt securities and
DVA on fair value option liabilities), attributable to the change in fair value relating to assets and liabilities classified as Level 3 that are still held at December 31,
2023.
(4)
Total Level 3 derivative assets and liabilities have been netted in these tables for presentation purposes only.
Level 3 Fair Value Transfers
The following were the significant Level 3 transfers for the
period December 31, 2023 to December 31, 2024:
During the 12 months ended December 31, 2024, transfers of
Long-term debt were $22.9 billion from Level 3 to Level 2,
and $4.6 billion from Level 2 to Level 3. The Level 3 to Level
2 transfers were primarily the result of enhanced significance
testing of unobservable inputs for certain structured debt
instruments. The Level 2 to Level 3 transfers were primarily
the result of certain unobservable inputs becoming more
significant to the overall valuation of these instruments. The
Level 3 to Level 2 transfers of $1.0 billion related to Equity
contracts were primarily the result of certain unobservable
inputs related to equity options becoming less significant to
the overall valuation of these instruments.
The following were the significant Level 3 transfers for the period
December 31, 2022 to December 31, 2023:
During the 12 months ended December 31, 2023, transfers of Long-
term debt were $4.9 billion from Level 2 to Level 3. Of the
$4.9 billion transfer, approximately $4.2 billion related to interest
rate option volatility inputs becoming unobservable and/or
significant relative to their overall valuation, and $0.6 billion related
to equity and credit derivative inputs (in addition to other volatility
inputs, e.g., interest rate volatility inputs) becoming unobservable
and/or significant to their overall valuation. In other instances,
market changes have resulted in some inputs becoming more
observable, and some unobservable inputs becoming less significant
to the overall valuation of the instruments (e.g., when an option
becomes deep-in or deep-out of the money). This has primarily
resulted in $10.2 billion of certain structured long-term debt
products being transferred from Level 3 to Level 2 during the 12
months ended December 31, 2023.
281
Valuation Techniques and Inputs for Level 3 Fair
Value Measurements
The Company’s Level 3 inventory consists of both cash
instruments and derivatives of varying complexity.
The following tables present the valuation techniques
covering the majority of Level 3 inventory and the most
significant unobservable inputs used in Level 3 fair value
measurements. Methodologies are applied consistently.
Changes in listed inputs period versus period represent
variables that become more, or less, significant, hence their
addition or removal from the tables below. Differences
between these tables and amounts presented in the Level 3
Fair Value Rollforward tables represent individually
immaterial items that have been measured using a variety of
valuation techniques other than those listed.
Assets
Securities borrowed and
purchased under agreements to
resell
$
128 Model-based
Credit spread
10 bps
10 bps
10 bps
Interest rate
3.81 %
3.81 %
3.81 %
Mortgage-backed securities
$
230 Yield analysis
Yield
5.24 %
18.43 %
9.25 %
214 Price-based
Price
$
0.01
$
99.81
$
35.24
State and municipal, foreign
government, corporate and
other debt securities
$
560 Price-based
Price
$
—
$
173.20
$
98.52
489 Model-based
Credit spread
35 bps
550 bps
277 bps
Yield
4.20 %
10.60 %
9.88 %
140 Cash flow
WAL
3.59 years
8.82 years
7.57 years
Marketable equity securities(5)
$
131 Price-based
Price
$
—
$ 14,382.07
$
442.64
22 Model-based
WAL
2.40 years
2.40 years
2.40 years
Recovery (in millions)
$
8,628
$
8,628
$
8,628
Asset-backed securities
$
132 Price-based
Price
$
3.46
$
132.54
$
74.86
47 Yield analysis
Yield
5.85 %
12.76 %
8.07 %
Non-marketable equities
$
222 Comparables analysis Illiquidity discount
7.40 %
33.00 %
16.47 %
Revenue multiple
4.50x
16.31x
11.97x
EBITDA multiples
16.20x
16.20x
16.20x
81 Price-based
Price
$
0.54
$ 2,960.96
$
432.84
50 Cash flow
Discount rate
9.75 %
17.50 %
13.38 %
50 Model-based
Derivatives—gross(6)
Interest rate contracts (gross)
$
3,574 Model-based
IR normal volatility
0.16 %
20.00 %
2.18 %
Yield
1.69 %
46.32 %
5.64 %
Equity forward
71.78 %
334.29 %
106.48 %
Foreign exchange contracts
(gross)
$
1,247 Model-based
IR normal volatility
0.67 %
1.13 %
0.93 %
IR basis
(7.50) %
64.75 %
5.01 %
FX volatility
3.33 %
27.64 %
12.55 %
Yield
1.69 %
46.32 %
9.26 %
Equity contracts (gross)(7)
$
4,345 Model-based
Equity volatility
— %
145.41 %
32.89 %
Equity forward
71.78 %
334.29 %
105.90 %
Equity-FX
correlation
(93.33) %
70.00 %
(14.52) %
Equity-Equity
correlation
(36.22) %
99.00 %
72.43 %
Commodity and other contracts
(gross)
$
1,716 Model-based
Forward price
1.84 %
244.41 %
115.84 %
Commodity volatility
7.14 %
285.61 %
35.86 %
Credit derivatives (gross)
$
869 Model-based
Recovery rate
20.00 %
72.00 %
41.54 %
As of December 31, 2024
Fair value(1)
(in millions)
Methodology
Input
Low(2)(3)
High(2)(3)
Weighted
average(4)
282
Credit spread
5.00 bps
747.27 bps
100.50 bps
Credit spread
volatility
29.85 %
81.44 %
67.58 %
468 Price-based
Price
$
43.71
$
103.53
$
85.76
Upfront points
(6.25) %
110.52 %
43.93 %
Other financial assets and
liabilities (gross)
$
14 Price-based
Price
$
91.12
$
104.49
$
100.04
Loans and leases
$
177 Model-based
Equity volatility
35.42 %
41.94 %
37.21 %
Forward price
1.84 %
244.41 %
102.92 %
82 Price-based
Price
$
73.88
$
99.25
$
85.09
Mortgage servicing rights
$
671 Cash flow
WAL
3.59 years
8.82 years
7.57 years
84 Model-based
Yield
0.30 %
12.00 %
6.82 %
Liabilities
Interest-bearing deposits
$
39 Model-based
Forward price
100.00 %
100.00 %
100.00 %
Securities loaned and sold under
agreements to repurchase
$
390 Model-based
Interest rate
4.25 %
4.85 %
4.28 %
IR normal volatility
0.67 %
1.13 %
0.93 %
Trading account liabilities
Securities sold, not yet
purchased and other trading
liabilities
$
27 Price-based
Price
$
—
$ 14,382.07
$
91.47
Short-term borrowings and
long-term debt
$
20,883 Model-based
IR normal volatility
0.04 %
20.00 %
1.54 %
Equity volatility
— %
145.41 %
19.81 %
Equity-IR correlation
(34.00) %
60.00 %
27.29 %
As of December 31, 2024
Fair value(1)
(in millions)
Methodology
Input
Low(2)(3)
High(2)(3)
Weighted
average(4)
Assets
Securities borrowed and
purchased under agreements to
resell
$
139 Model-based
Credit spread
15 bps
15 bps
15 bps
Interest rate
4.00 %
4.00 %
4.00 %
Mortgage-backed securities
$
679 Price-based
Price
$
1.67
$
124.63
$
55.39
401 Yield analysis
Yield
4.63 %
19.08 %
8.93 %
State and municipal, foreign
government, corporate and other
debt securities
$
1,582 Price-based
Price
$
0.01
$
123.74
$
79.71
778 Model-based
Credit spread
35 bps
550 bps
304 bps
Marketable equity securities(5)
$
259 Price-based
Price
$
—
$ 12,189.17
$
168.09
38 Model-based
WAL
2.24 years
2.24 years
2.24 years
Recovery (in millions)
$
7,398
$
7,398
$
7,398
Asset-backed securities
$
475 Price-based
Price
$
3.50
$
129.00
$
65.87
57 Yield analysis
Yield
5.93 %
18.86 %
8.57 %
Non-marketable equities
$
366 Comparables analysis Illiquidity discount
8.00 %
10.00 %
8.82 %
PE ratio
9.30x
16.50x
11.37x
Revenue multiple
2.80x
13.40x
12.28x
EBITDA multiples
15.80x
15.80x
15.80x
56 Cash flow
Discount to price
8.50 %
8.50 %
8.50 %
50 Price-based
Price
$
0.40
$
158.92
$
56.78
Derivatives—gross(6)
Interest rate contracts (gross)
$
5,237 Model-based
IR normal volatility
(0.07) %
15.00 %
1.44 %
As of December 31, 2023
Fair value(1)
(in millions)
Methodology
Input
Low(2)(3)
High(2)(3)
Weighted
average(4)
283
Interest rate
2.70 %
5.40 %
3.20 %
Foreign exchange contracts
(gross)
$
1,652 Model-based
IR normal volatility
(0.07) %
12.05 %
1.50 %
IR basis
(1.45) %
147.79 %
7.11 %
Equity contracts (gross)(7)
$
4,239 Model-based
Equity volatility
0.10 %
334.35 %
38.35 %
Equity forward
54.14 %
273.54 %
101.44 %
Equity-FX
correlation
(79.00) %
70.00 %
(7.66) %
Equity-Equity
correlation
(6.49) %
97.44 %
80.42 %
WAL
2.24 years
2.24 years
2.24 years
Recovery (in millions)
$
7,398
$
7,398
$
7,398
Commodity and other contracts
(gross)
$
1,943 Model-based
Forward price
31.70 %
425.51 %
134.65 %
Commodity volatility
14.72 %
149.99 %
37.03 %
Commodity
correlation
(45.33) %
93.02 %
45.03 %
Credit derivatives (gross)
$
1,135 Model-based
Credit spread
11.43 bps
1,519 bps
140.34 bps
Credit spread
volatility
23.94 %
115.66 %
42.76 %
Recovery rate
15.00 %
75.00 %
36.56 %
378 Price-based
Upfront points
1.25 %
117.31 %
58.10 %
Price
$
37.67
$
97.00
$
79.54
Non-trading derivatives and other
financial assets and liabilities
measured on a recurring basis
(gross)
$
36 Price-based
Price
$
0.01
$
104.79
$
90.87
Loans and leases
$
316 Price-based
Price
$
98.80
$
98.80
$
98.80
111 Model-based
Forward price
33.48 %
348.43 %
115.47 %
Commodity volatility
26.51 %
66.80 %
31.79 %
Commodity
correlation
(45.33) %
93.02 %
(7.28) %
Equity volatility
41.61 %
45.40 %
43.17 %
Mortgage servicing rights
$
595 Cash flow
WAL
1.00 years
8.76 years
1.29 years
66 Model-based
Yield
— %
12.00 %
8.06 %
Liabilities
Interest-bearing deposits
$
29 Model-based
Forward price
100.00 %
100.00 %
100.00 %
Securities loaned and sold under
agreements to repurchase
$
390 Model-based
Interest rate
3.92 %
5.27 %
3.96 %
Trading account liabilities
Securities sold, not yet purchased
and other trading liabilities
$
23 Price-based
Price
$
—
$ 12,189.17
$
28.70
7 Yield analysis
Yield
7.46 %
7.46 %
7.46 %
5 Model-based
FX volatility
3.56 %
28.13 %
13.17 %
Short-term borrowings and long-
term debt
$
38,794 Model-based
IR normal volatility
0.32 %
20.00 %
1.25 %
As of December 31, 2023
Fair value(1)
(in millions)
Methodology
Input
Low(2)(3)
High(2)(3)
Weighted
average(4)
(1)
The tables above include the fair values for the items listed and may not represent the total population for each category.
(2)
Some inputs are shown as zero due to rounding.
(3)
When the low and high inputs are the same, there is either a constant input applied to all positions, or the methodology involving the input applies to only one
large position.
(4)
Weighted averages are calculated based on the fair values of the instruments.
(5)
For equity securities, the price inputs are expressed on an absolute basis, not as a percentage of the notional amount.
(6)
Both trading and non-trading account derivatives—assets and liabilities—are presented on a gross absolute value basis.
(7)
Includes hybrid products.
284
Uncertainty of Fair Value Measurements Relating to
Unobservable Inputs
Valuation uncertainty arises when there is insufficient or
dispersed market data to allow a precise determination of the
exit value of a fair-valued position or portfolio in today’s
market. This is especially prevalent in Level 3 fair value
instruments, where uncertainty exists in valuation inputs that
may be both unobservable and significant to the instrument’s
(or portfolio’s) overall fair value measurement. The
uncertainties associated with key unobservable inputs on the
Level 3 fair value measurements may not be independent of
one another. In addition, the amount and direction of the
uncertainty on a fair value measurement for a given change in
an unobservable input depends on the nature of the instrument
as well as whether the Company holds the instrument as an
asset or a liability. For certain instruments, the pricing,
hedging and risk management are sensitive to the correlation
between various inputs rather than on the analysis and
aggregation of the individual inputs.
The following section describes some of the most
significant unobservable inputs used by the Company in
Level 3 fair value measurements.
Correlation
Correlation is a measure of the extent to which two or more
variables change in relation to each other. A variety of
correlation-related assumptions are required for a wide range
of instruments, including equity and credit baskets, foreign
exchange options, Credit Index Tranches and many other
instruments. For almost all of these instruments, correlations
are not directly observable in the market and must be
calculated using alternative sources, including historical
information. Estimating correlation can be especially difficult
where it may vary over time, and calculating correlation
information from market data requires significant assumptions
regarding the informational efficiency of the market (e.g.,
swaption markets). Uncertainty therefore exists when an
estimate of the appropriate level of correlation as an input into
some fair value measurements is required.
Changes in correlation levels can have a substantial
impact, favorable or unfavorable, on the value of an
instrument, depending on its nature. A change in the default
correlation of the fair value of the underlying bonds
comprising a CDO structure would affect the fair value of the
senior tranche. For example, an increase in the default
correlation of the underlying bonds would reduce the fair
value of the senior tranche, because highly correlated
instruments produce greater losses in the event of default and a
portion of these losses would become attributable to the senior
tranche. That same change in default correlation would have a
different impact on junior tranches of the same structure.
Volatility
Volatility represents the speed and severity of market price
changes and is a key factor in pricing options. Volatility
generally depends on the tenor of the underlying instrument
and the strike price or level defined in the contract. Volatilities
for certain combinations of tenor and strike are not observable
and need to be estimated using alternative methods, such as
comparable instruments, historical analysis or other sources of
market information. This leads to uncertainty around the final
fair value measurement of instruments with unobservable
volatilities.
The general relationship between changes in the value of
an instrument (or a portfolio) to changes in volatility also
depends on changes in interest rates and the level of the
underlying index. Generally, long option positions (assets)
benefit from increases in volatility, whereas short option
positions (liabilities) will suffer losses. Some instruments are
more sensitive to changes in volatility than others. For
example, an at-the-money option would experience a greater
percentage change in its fair value than a deep-in-the-money
option. In addition, the fair value of an option with more than
one underlying security (e.g., an option on a basket of
equities) depends on the volatility of the individual underlying
securities as well as their correlations.
Yield
In some circumstances, the yield of an instrument is not
observable in the market and must be estimated from historical
data or from yields of similar securities. This estimated yield
may need to be adjusted to capture the characteristics of the
security being valued. Whenever the amount of the adjustment
is significant to the value of the security, the fair value
measurement is classified as Level 3.
Adjusted yield is generally used to discount the projected
future principal and interest cash flows on instruments, such as
asset-backed securities. Adjusted yield is impacted by changes
in the interest rate environment and relevant credit spreads.
Prepayment
Voluntary unscheduled payments (prepayments) change the
future cash flows for the investor and thereby change the fair
value of the security. The effect of prepayments is more
pronounced for residential mortgage-backed securities.
Prepayment is generally negatively correlated with
delinquency and interest rate. A combination of low
prepayments and high delinquencies amplifies each input’s
negative impact on a mortgage security’s valuation. As
prepayment speeds change, the weighted-average life of the
security changes, which impacts the valuation either positively
or negatively, depending upon the nature of the security and
the direction of the change in the weighted-average life.
Recovery
Recovery is the proportion of the total outstanding balance of
a bond or loan that is expected to be collected in a liquidation
scenario. For many credit securities (e.g., commercial
mortgage-backed securities), the expected recovery amount of
a defaulted property is typically unknown until a liquidation of
the property is imminent. The assumed recovery of a security
may differ from its actual recovery that will be observable in
the future. Generally, an increase in the recovery rate
assumption increases the fair value of the security. An increase
in loss severity, the inverse of the recovery rate, reduces the
amount of principal available for distribution and, as a result,
decreases the fair value of the security.
285
Credit Spread
Credit spread is a component of the security representing its
credit quality. Credit spread reflects the market perception of
changes in prepayment, delinquency and recovery rates,
therefore capturing the impact of other variables on the fair
value. Changes in credit spread affect the fair value of
securities differently depending on the characteristics and
maturity profile of the security. For example, credit spread is a
more significant driver of the fair value measurement of a
high-yield bond as compared to an investment-grade bond.
Generally, the credit spread for an investment-grade bond is
also more observable and less volatile than its high-yield
counterpart.
Items Measured at Fair Value on a Nonrecurring Basis
Certain assets and liabilities are measured at fair value on a
nonrecurring basis and, therefore, are not included in the
tables above. These include assets measured at cost that have
been written down to fair value during the periods as a result
of an impairment. These also include non-marketable equity
securities that have been measured using the measurement
alternative and are either (i) written down to fair value during
the periods as a result of an impairment or (ii) adjusted upward
or downward to fair value as a result of a transaction observed
during the periods for an identical or similar investment in the
same issuer. In addition, these assets include loans held-for-
sale and other real estate owned that are measured at the lower
of cost or market value.
The following tables present the carrying amounts of all
assets that were still held for which a nonrecurring fair value
measurement was recorded:
In millions of dollars
Fair value
Level 2
Level 3
December 31, 2024
Loans HFS(1)
$
684 $
413 $
271
Other real estate owned
1
—
1
Loans(2)
353
—
353
Non-marketable equity
securities measured using
the measurement
alternative
184
—
184
Total assets at fair value
on a nonrecurring basis
$
1,222 $
413 $
809
In millions of dollars
Fair value
Level 2
Level 3
December 31, 2023
Loans HFS(1)
$
1,171 $
495 $
676
Other real estate owned
4
—
4
Loans(2)
328
—
328
Non-marketable equity
securities measured using
the measurement
alternative
359
—
359
Total assets at fair value
on a nonrecurring basis
$
1,862 $
495 $
1,367
(1)
Net of mark-to-market amounts on the unfunded portion of loans HFS
recognized as Other liabilities on the Consolidated Balance Sheet.
(2)
Represents collateral-dependent loans held for investment for which the
fair value of collateral is used to estimate expected credit losses, and
whose carrying amount is based on the fair value of the underlying
collateral less costs to sell, as applicable (primarily real estate).
The fair value of loans HFS is determined where possible
using quoted secondary-market prices. If no such quoted price
exists, the fair value of a loan is determined using quoted
prices for a similar asset or assets, adjusted for the specific
attributes of that loan. Fair value for the other real estate
owned is based on appraisals. For loans whose carrying
amount is based on the fair value of the underlying collateral,
the fair values depend on the type of collateral. Fair value of
the collateral is typically estimated based on quoted market
prices if available, appraisals or other internal valuation
techniques.
Where the fair value of the related collateral is based on
an appraised value, the loan is generally classified as Level 3.
In addition, for corporate loans, appraisals of the collateral are
often based on sales of similar assets; however, because the
prices of similar assets require significant adjustments to
reflect the unique features of the underlying collateral, these
fair value measurements are generally classified as Level 3.
The fair value of non-marketable equity securities under
the measurement alternative is based on observed transaction
prices for the identical or similar investment of the same
issuer, or an internal valuation technique in the case of an
impairment. Where there are insufficient market observations
to conclude the inputs are observable, where significant
adjustments are made to the observed transaction prices or
when an internal valuation technique is used, the security is
classified as Level 3. Fair value may differ from the observed
transaction price due to a number of factors, including
marketability adjustments and differences in rights and
obligations when the observed transaction is not for the
identical investment held by Citi.
286
Valuation Techniques and Inputs for Level 3 Nonrecurring Fair Value Measurements
The following tables present the valuation techniques covering the majority of Level 3 nonrecurring fair value measurements and the
most significant unobservable inputs used in those measurements:
As of December 31, 2024
Fair value(1)
(in millions)
Methodology
Input
Low(2)
High
Weighted
average(3)
Loans HFS
$
271 Price-based
Price
$
—
$
101.00
$
96.61
Loans(5)
$
353 Recovery analysis
Appraised value(4) $
10,000
$ 104,049,422
$
58,636,070
Non-marketable equity
securities measured using
the measurement
alternative
$
136 Price-based
Price
$
1.50
$
2,961.00
$
258.00
29 Comparable analysis
Revenue multiple
$
3.80
$
9.19
$
6.67
19 Recovery analysis
Appraised value(4) $
503,332
$
7,220,000
$
4,309,976
As of December 31, 2023
Fair value(1)
(in millions)
Methodology
Input
Low(2)
High
Weighted
average(3)
Loans HFS
$
674 Price-based
Price
$
67.50
$
100.00
$
93.39
Loans(5)
$
296 Recovery analysis
Appraised value(4)
$
12,000
$ 75,997,078
$
46,121,923
Non-marketable equity
securities measured using
the measurement alternative
$
250 Price-based
Price
$
1.57
$
2,637.00
$
1,114.06
109 Comparable analysis
Revenue multiple
2.3x
35.7x
11.69x
Other real estate owned
$
3 Price-based
Appraised value(4)
$ 401,042
$
2,061,700
$
155,696
(1)
The tables above include the fair values for the items listed and may not represent the total population for each category.
(2)
Some inputs are shown as zero due to rounding.
(3)
Weighted averages are calculated based on the fair values of the instruments.
(4)
Appraised values are disclosed in whole dollars.
(5)
Represents collateral-dependent loans held for investment for which the fair value of collateral is used to estimate expected credit losses, and whose carrying
amount is based on the fair value of the underlying collateral less costs to sell, as applicable (primarily real estate).
Nonrecurring Fair Value Changes
The following table presents total nonrecurring fair value measurements for the period, included in earnings, attributable to the change
in fair value relating to assets that were still held:
Year ended December 31,
In millions of dollars
2024
2023
Loans HFS
$
(10) $
(119)
Other real estate owned
—
—
Loans(1)
(44)
(148)
Non-marketable equity securities measured using the measurement alternative
(29)
(72)
Total nonrecurring fair value gains (losses)
$
(83) $
(339)
(1)
Represents collateral-dependent loans held for investment for which the fair value of collateral is used to estimate expected credit losses, and whose carrying
amount is based on the fair value of the underlying collateral less costs to sell, as applicable (primarily real estate).
287
Estimated Fair Value of Financial Instruments Not
Carried at Fair Value
The following tables present the carrying value and fair value
of Citigroup’s financial instruments that are not carried at fair
value. The tables below therefore exclude items measured at
fair value on a recurring basis presented in the tables above.
The disclosure also excludes leases, affiliate investments,
pension and benefit obligations, certain insurance contracts
and tax-related items. Also, as required, the disclosure
excludes the effect of taxes, any premium or discount that
could result from offering for sale at one time the entire
holdings of a particular instrument, excess fair value
associated with deposits with no fixed maturity and other
expenses that would be incurred in a market transaction. In
addition, the tables exclude the values of non-financial assets
and liabilities, as well as a wide range of franchise,
relationship and intangible values, which are integral to a full
assessment of Citigroup’s financial position and the value of
its net assets.
Fair values vary from period to period based on changes
in a wide range of factors, including interest rates, credit
quality and market perceptions of value, and as existing assets
and liabilities run off and new transactions are entered into.
December 31, 2024
Estimated fair value
Carrying
value
Estimated
fair value
In billions of dollars
Level 1
Level 2
Level 3
Assets
HTM debt securities, net of allowance(1)
$
247.6 $
229.8 $
120.2 $
107.4 $
2.2
Securities borrowed and purchased under agreements to resell
133.2
133.2
—
133.2
—
Loans(2)(3)
667.6
673.5
—
—
673.5
Other financial assets(3)(4)
362.2
362.2
260.6
15.9
85.7
Liabilities
Deposits(5)
$
1,280.9 $
1,280.9 $
— $ 1,280.9 $
—
Securities loaned and sold under agreements to repurchase
205.6
205.6
—
205.6
—
Long-term debt(6)
174.5
178.0
—
162.1
15.9
Other financial liabilities(7)
137.7
137.7
—
34.7
103.0
December 31, 2023
Estimated fair value
Carrying
value
Estimated
fair value
In billions of dollars
Level 1
Level 2
Level 3
Assets
HTM debt securities, net of allowance(1)
$
259.7 $
240.6 $
124.0 $
114.1 $
2.5
Securities borrowed and purchased under agreements to resell
139.6
139.7
—
139.7
—
Loans(2)(3)
663.3
673.2
—
—
673.2
Other financial assets(3)(4)
347.5
347.5
243.1
17.8
86.6
Liabilities
Deposits(5)
$
1,306.2 $
1,305.9 $
— $ 1,116.5 $
189.4
Securities loaned and sold under agreements to repurchase
215.6
215.6
—
215.6
—
Long-term debt(6)
170.3
173.4
—
168.0
5.4
Other financial liabilities(7)
132.8
132.8
—
29.2
103.6
(1)
Includes $5.2 billion and $5.5 billion of non-marketable equity securities carried at cost at December 31, 2024 and 2023, respectively.
(2)
The carrying value of loans is net of the allowance for credit losses on loans of $18.6 billion for December 31, 2024 and $18.1 billion for December 31, 2023. In
addition, the carrying values exclude $0.3 billion and $0.3 billion of lease finance receivables at December 31, 2024 and 2023, respectively.
(3)
Includes items measured at fair value on a nonrecurring basis.
(4)
Includes cash and due from banks, deposits with banks, brokerage receivables, reinsurance recoverables and other financial instruments included in Other assets
on the Consolidated Balance Sheet, for all of which the carrying value is a reasonable estimate of fair value.
(5)
As a result of Citi refining its application of fair value hierarchy methodologies, certain deposit liabilities that were previously classified as Level 3 are now
classified as Level 2.
(6)
The carrying value includes long-term debt balances under qualifying fair value hedges.
(7)
Includes brokerage payables, separate and variable accounts, short-term borrowings (carried at cost) and other financial instruments included in Other liabilities
on the Consolidated Balance Sheet, for all of which the carrying value is a reasonable estimate of fair value.
The estimated fair values of the Company’s corporate
unfunded lending commitments at December 31, 2024 and
2023 were off-balance sheet liabilities of $13.5 billion and
$14.2 billion, respectively, substantially all of which are
classified as Level 3. The Company does not estimate the fair
values of consumer unfunded lending commitments, which are
generally cancelable by providing notice to the borrower.
288
27. FAIR VALUE ELECTIONS
The Company may elect to report most financial instruments
and certain other items at fair value on an instrument-by-
instrument basis with changes in fair value reported in
earnings, other than DVA (see below). The election is made
upon the initial recognition of an eligible financial asset,
financial liability or firm commitment or when certain
specified reconsideration events occur. The fair value election
may not otherwise be revoked once an election is made. The
changes in fair value are recorded in current earnings.
Movements in DVA are reported as a component of AOCI.
The Company has elected fair value accounting for its
mortgage servicing rights (MSRs). See Note 23 for additional
details on Citi’s MSRs.
Additional discussion regarding other applicable areas in
which fair value elections were made is presented in Note 26.
The following table presents the changes in fair value of those items for which the fair value option has been elected:
Changes in fair value—gains (losses)
for the years ended December 31,
In millions of dollars
2024
2023
Assets
Securities borrowed and purchased under agreements to resell
$
77 $
267
Trading account assets
(28)
97
Loans
Corporate loans
1,137
2,038
Consumer loans
(10)
6
Total loans
$
1,127 $
2,044
Other assets
MSRs
$
37 $
28
Mortgage loans HFS(1)
16
(23)
Total other assets
$
53 $
5
Total assets
$
1,229 $
2,413
Liabilities
Deposits
$
(38) $
(97)
Securities loaned and sold under agreements to repurchase
46
(217)
Trading account liabilities
(190)
138
Short-term borrowings(2)
(524)
(18)
Long-term debt(2)
(6,285)
(12,998)
Total liabilities
$
(6,991) $
(13,192)
(1)
Includes gains (losses) associated with interest rate lock commitments for originated loans for which the Company has elected the fair value option.
(2) Includes DVA that is included in AOCI. See Notes 21 and 26.
289
Own Debt Valuation Adjustments (DVA)
Own debt valuation adjustments are recognized on Citi’s
liabilities for which the fair value option has been elected
using Citi’s credit spreads observed in the bond market.
Changes in fair value of fair value option liabilities related to
changes in Citigroup’s own credit spreads (DVA) are reflected
as a component of AOCI. See Note 21 for additional
information.
Among other variables, the fair value of liabilities for
which the fair value option has been elected (other than non-
recourse debt and similar liabilities) is impacted by the
narrowing or widening of the Company’s credit spreads.
The estimated changes in the fair value of these non-
derivative liabilities due to such changes in the Company’s
own credit spread (or instrument-specific credit risk) were a
loss of $573 million and a loss of $2,078 million for the years
ended December 31, 2024 and 2023, respectively. Changes in
fair value resulting from changes in instrument-specific credit
risk were estimated by incorporating the Company’s current
credit spreads observable in the bond market into the relevant
valuation technique used to value each liability as described
above.
The Fair Value Option for Financial Assets and Financial
Liabilities
Selected Portfolios of Securities Purchased Under
Agreements to Resell, Securities Borrowed, Securities Sold
Under Agreements to Repurchase, Securities Loaned and
Certain Uncollateralized Short-Term Borrowings
The Company elected the fair value option for certain
portfolios of fixed income securities purchased under
agreements to resell and fixed income securities sold under
agreements to repurchase, securities borrowed, securities
loaned and certain uncollateralized short-term borrowings held
primarily by broker-dealer entities in the U.S., the U.K. and
Japan. In each case, the election was made because the related
interest rate risk is managed on a portfolio basis, primarily
with offsetting derivative instruments that are accounted for at
fair value through earnings.
Changes in fair value for transactions in these portfolios
are recorded in Principal transactions. The related interest
income and interest expense are measured based on the
contractual rates specified in the transactions and are reported
as Interest income and Interest expense in the Consolidated
Statement of Income.
Loans and Other Credit Products
Citigroup has also elected the fair value option for certain
other originated and purchased loans, including certain
unfunded loan products, such as guarantees and letters of
credit, executed by Citigroup’s lending and trading businesses.
Significant groups of transactions include loans and unfunded
loan products that are expected to be either sold or securitized
in the near term, or transactions where the economic risks are
hedged with derivative instruments, such as purchased credit
default swaps or total return swaps where the Company pays
the total return on the underlying loans to a third party.
Citigroup has elected the fair value option to mitigate
accounting mismatches in cases where hedge accounting is
complex and to achieve operational simplifications. Fair value
was not elected for most lending transactions across the
Company.
The following table provides information about certain credit products carried at fair value:
December 31, 2024
December 31, 2023
In millions of dollars
Trading assets
Loans
Trading assets
Loans
Carrying amount reported on the Consolidated Balance Sheet
$
5,025 $
8,040 $
4,518 $
7,594
Aggregate unpaid principal balance in excess of (less than) fair value
137
(55)
88
10
Balance of non-accrual loans or loans more than 90 days past due
—
2
—
1
Aggregate unpaid principal balance in excess of (less than) fair value for non-accrual
loans or loans more than 90 days past due
—
—
—
1
In addition to the amounts reported above, $280 million
and $391 million of unfunded commitments related to certain
credit products selected for fair value accounting were
outstanding as of December 31, 2024 and 2023, respectively.
290
Changes in the fair value of funded and unfunded credit
products are classified in Principal transactions in Citi’s
Consolidated Statement of Income. Related interest income is
measured based on the contractual interest rates and reported
as Interest income on Trading account assets or loan interest
depending on the balance sheet classifications of the credit
products. The changes in fair value for the years ended
December 31, 2024 and 2023 due to instrument-specific credit
risk were a loss of $38 million and a gain of $39 million,
respectively. Changes in fair value due to instrument-specific
credit risk are estimated based on changes in borrower-specific
credit spreads and recovery assumptions.
Certain Investments in Unallocated Precious Metals
Citigroup invests in unallocated precious metals accounts
(e.g., gold, silver, platinum and palladium) as part of its
commodity trading activities. Under ASC 815, the investment
is bifurcated into a debt host contract and a commodity
derivative instrument. Citigroup elects the fair value option for
the debt host contract and reports the contract within Trading
account assets on the Company’s Consolidated Balance Sheet.
The total carrying amount of debt host contracts across
unallocated precious metals accounts was approximately $0.9
billion and $0.6 billion at December 31, 2024 and 2023,
respectively.
As part of its commodity trading activities, Citi trades
unallocated precious metals investments and executes forward
purchase and forward sale derivative contracts with trading
counterparties. When Citi sells an unallocated precious metals
investment, Citi’s receivable from its depository bank is repaid
and Citi derecognizes its investment in the unallocated
precious metal. The forward purchase or sale contract with the
trading counterparty indexed to unallocated precious metals is
accounted for as a derivative, at fair value through earnings.
Certain Mortgage Loans Held-for-Sale (HFS)
Citigroup has elected the fair value option for certain
purchased and originated prime fixed-rate and conforming
adjustable-rate first mortgage loans HFS. These loans are
intended for sale or securitization and are economically
hedged with derivative instruments. The Company has elected
the fair value option to mitigate accounting mismatches in
cases where hedge accounting is complex and to achieve
operational simplifications.
The following table provides information about certain mortgage loans HFS carried at fair value:
In millions of dollars
December 31,
2024
December 31,
2023
Carrying amount reported on the Consolidated Balance Sheet
$
692 $
571
Aggregate fair value in excess of (less than) unpaid principal balance
4
17
Balance of non-accrual loans or loans more than 90 days past due
1
3
Aggregate unpaid principal balance in excess of fair value for non-accrual loans
or loans more than 90 days past due
—
—
The changes in the fair values of these mortgage loans are
reported in Other revenue in the Company’s Consolidated
Statement of Income. There was no net change in fair value
during the years ended December 31, 2024 and 2023 due to
instrument-specific credit risk. Changes in fair value due to
instrument-specific credit risk are estimated based on changes
in the borrower default, prepayment and recovery forecasts in
addition to instrument-specific credit spread. Related interest
income continues to be measured based on the contractual
interest rates and reported as Interest income in the
Consolidated Statement of Income.
291
Certain Debt Liabilities
The Company has elected the fair value option for certain debt
liabilities, because these exposures are considered to be
trading-related positions and, therefore, are managed on a fair
value basis. These positions are classified as Long-term debt
or Short-term borrowings on the Company’s Consolidated
Balance Sheet.
The following table provides information about the carrying value of notes carried at fair value, disaggregated by type of risk:
In billions of dollars
December 31,
2024
December 31,
2023
Interest rate linked
$
58.0 $
60.4
Foreign exchange linked
0.1
—
Equity linked
41.8
45.9
Commodity linked
6.9
5.3
Credit linked
5.9
4.7
Total
$
112.7 $
116.3
The portion of the changes in fair value attributable to
changes in Citigroup’s own credit spreads (DVA) is reflected
as a component of AOCI while all other changes in fair value
are reported in Principal transactions. Changes in the fair
value of these liabilities include accrued interest, which is also
included in the change in fair value reported in Principal
transactions.
Certain Non-Structured Liabilities
The Company has elected the fair value option for certain non-
structured liabilities with fixed and floating interest rates. The
Company has elected the fair value option where the interest
rate risk of such liabilities may be economically hedged with
derivative contracts or the proceeds are used to purchase
financial assets that will also be accounted for at fair value
through earnings. The elections have been made to mitigate
accounting mismatches and to achieve operational
simplifications. These positions are reported in Short-term
borrowings and Long-term debt on the Company’s
Consolidated Balance Sheet. The portion of the changes in fair
value attributable to changes in Citigroup’s own credit spreads
(i.e., DVA) is reflected as a component of AOCI while all
other changes in fair value are reported in Principal
transactions.
Interest expense on non-structured liabilities is measured
based on the contractual interest rates and reported as Interest
expense in the Consolidated Statement of Income.
The following table provides information about long-term debt and short-term borrowings carried at fair value:
In millions of dollars
December 31,
2024
December 31,
2023
Long-term debt
Carrying amount reported on the Consolidated Balance Sheet
$
112,719 $
116,338
Aggregate unpaid principal balance in excess of (less than) fair value
(1,943)
(2,842)
Short-term borrowings
Carrying amount reported on the Consolidated Balance Sheet
$
12,484 $
6,545
Aggregate unpaid principal balance in excess of (less than) fair value
(87)
(60)
292
28. PLEDGED ASSETS, RESTRICTED CASH,
COLLATERAL, GUARANTEES AND COMMITMENTS
Pledged Assets
In connection with Citi’s financing and trading activities, Citi
has pledged assets to collateralize its obligations under
repurchase agreements, secured financing agreements, secured
liabilities of consolidated VIEs and other borrowings. The
approximate carrying values of the significant components of
pledged assets recognized on Citi’s Consolidated Balance
Sheet included the following:
In billions of dollars
December 31,
2024
December 31,
2023
Investment securities
$
244.2 $
229.2
Loans
294.4
292.3
Trading account assets
195.7
199.3
Total
$
734.3 $
720.8
At December 31, 2024 and 2023, $535.6 billion and
$511.6 billion, respectively, of these pledged assets may not
be sold or repledged by the secured parties.
Restricted Cash
Citigroup defines restricted cash (as cash subject to
withdrawal restrictions) to include cash deposited with central
banks that must be maintained to meet minimum regulatory
requirements, and cash set aside for the benefit of customers
or for other purposes such as compensating balance
arrangements or debt retirement. Restricted cash may include
minimum reserve requirements at certain central banks and
cash segregated to satisfy rules regarding the protection of
customer assets as required by Citigroup broker-dealers’
primary regulators, including the SEC, the Commodity
Futures Trading Commission and the United Kingdom’s
Prudential Regulation Authority.
Restricted cash is included on the Consolidated Balance
Sheet within the following balance sheet lines:
In millions of dollars
December 31,
2024
December 31,
2023
Cash and due from banks
$
3,325 $
3,479
Deposits with banks, net of
allowance
16,217
15,538
Total
$
19,542 $
19,017
In addition to the restricted cash amounts presented
above, at December 31, 2024 and 2023, approximately
$7.2 billion and $3.9 billion, respectively, was held at the
Russian Deposit Insurance Agency (DIA) and was subject to
restrictions imposed by the Russian government. These
restricted amounts are reported within Other assets on the
Consolidated Balance Sheet.
Collateral
At December 31, 2024 and 2023, the approximate fair value of
securities collateral received by Citi that may be resold or
repledged, excluding the impact of allowable netting, was
$844.8 billion and $817.9 billion, respectively. This collateral
was received in connection with resale agreements, securities
borrowings and loans, securities for securities lending
transactions, derivative transactions and margined broker
loans.
At December 31, 2024 and 2023, a substantial portion of
the collateral received by Citi had been sold or repledged in
connection with repurchase agreements, securities sold, not
yet purchased, securities lendings, pledges to clearing
organizations, segregation requirements under securities laws
and regulations, derivative transactions and bank loans.
293
Guarantees
Citi provides a variety of guarantees and indemnifications to
its customers to enhance their credit standing and enable them
to complete a wide range of business transactions. For
certain contracts meeting the definition of a guarantee, the
guarantor must recognize, at inception, a liability for the fair
value of the obligation undertaken in issuing the guarantee.
In addition, the guarantor must disclose the maximum
potential amount of future payments that the guarantor could
be required to make under the guarantee, if there were a total
default by the guaranteed parties. The determination of the
maximum potential future payments is based on the notional
amount of the guarantees without consideration of possible
recoveries under recourse provisions or from collateral held or
pledged. As such, Citi believes such amounts bear no
relationship to the anticipated losses, if any, on these
guarantees.
The following tables present information about Citi’s guarantees:
Maximum potential amount of future payments
In billions of dollars at December 31, 2024
Expire within
1 year
Expire after
1 year
Total amount
outstanding
Carrying value
(in millions of dollars)
Financial standby letters of credit
$
15.5 $
63.5 $
79.0 $
546
Performance guarantees
4.2
5.8
10.0
27
Derivative instruments considered to be guarantees
15.8
27.3
43.1
332
Loans sold with recourse
—
1.0
1.0
—
Securities lending indemnifications(1)
96.3
—
96.3
—
Card merchant processing(2)
124.3
—
124.3
—
Credit card arrangements with partners(3)
0.2
21.5
21.7
2
Guarantees under the Fixed Income Clearing Corporation sponsored
member repo program
139.5
—
139.5
—
Other(4)
0.1
8.4
8.5
57
Total
$
395.9 $
127.5 $
523.4 $
964
Maximum potential amount of future payments
In billions of dollars at December 31, 2023
Expire within
1 year
Expire after
1 year
Total amount
outstanding
Carrying value
(in millions of dollars)
Financial standby letters of credit
$
17.8 $
63.5 $
81.3 $
674
Performance guarantees
4.8
5.8
10.6
49
Derivative instruments considered to be guarantees
24.2
16.3
40.5
362
Loans sold with recourse
0.6
1.2
1.8
16
Securities lending indemnifications(1)
104.1
—
104.1
—
Card merchant processing(2)
138.0
—
138.0
—
Credit card arrangements with partners(3)
0.2
0.2
0.4
5
Guarantees under the Fixed Income Clearing Corporation sponsored
member repo program
27.7
—
27.7
—
Other(4)
—
7.7
7.7
50
Total
$
317.4 $
94.7 $
412.1 $
1,156
(1)
The carrying values of securities lending indemnifications were not material for either period presented, as the probability of potential liabilities arising from these
guarantees is minimal.
(2)
At December 31, 2024 and 2023, this maximum potential exposure was estimated to be approximately $124.3 billion and $138 billion, respectively. However, Citi
believes that the maximum exposure is not representative of the actual potential loss exposure based on its historical experience. This contingent liability is
unlikely to arise, as most products and services are delivered when purchased and amounts are refunded when items are returned to merchants. As such, any losses
incurred and the carrying amounts of Citi’s contingent obligations related to merchant processing activities were immaterial. See “Card Merchant Processing”
below.
(3)
Includes additional guarantees entered into as part of the extension and amendment of the American Airlines co-branded credit card partnership agreement,
executed in December 2024. See “Credit Card Arrangements with Partners” below. Citi believes that the maximum exposure is not representative of actual
potential loss exposure based on historical and expected future performance of the portfolio.
(4)
Includes guarantees of subsidiaries.
294
Financial Standby Letters of Credit
Citi issues standby letters of credit, which substitute its own
credit for that of the borrower. If a letter of credit is drawn
down, the borrower is obligated to repay Citi. Standby letters
of credit protect a third party from defaults on contractual
obligations. Financial standby letters of credit include
(i) guarantees of payment of insurance premiums and
reinsurance risks that support industrial revenue bond
underwriting, (ii) settlement of payment obligations to clearing
houses, including futures and over-the-counter derivatives
clearing (see further discussion below), (iii) support options
and purchases of securities in lieu of escrow deposit accounts
and (iv) letters of credit that backstop loans, credit facilities,
promissory notes and trade acceptances.
Performance Guarantees
Performance guarantees and letters of credit are issued to
guarantee a customer’s tender bid on a construction or
systems-installation project or to guarantee completion of such
projects in accordance with contract terms. They are also
issued to support a customer’s obligation to supply specified
products, commodities or maintenance or warranty services to
a third party.
Derivative Instruments Considered to Be Guarantees
Derivatives are financial instruments whose cash flows are
based on a notional amount and an underlying instrument,
reference credit or index, where there is little or no initial
investment and whose terms require or permit net settlement.
See Note 24 for a discussion of Citi’s derivatives activities.
Derivative instruments considered to be guarantees
include only those instruments that require Citi to make
payments to the counterparty based on changes in an
underlying instrument that is related to an asset, a liability or
an equity security held by the guaranteed party. More
specifically, derivative instruments considered to be
guarantees include certain over-the-counter written put options
where the counterparty is not a bank, hedge fund or broker-
dealer (such counterparties are considered to be dealers in
these markets and may, therefore, not hold the underlying
instruments). Credit derivatives sold by Citi are excluded from
the tables above as they are disclosed separately in Note 24. In
instances where Citi’s maximum potential future payment is
unlimited, the notional amount of the contract is disclosed.
Loans Sold with Recourse
Loans sold with recourse represent Citi’s obligations to
reimburse the buyers for loan losses under certain
circumstances. Recourse refers to the clause in a sales
agreement under which a seller/lender will fully reimburse the
buyer/investor for any losses resulting from the purchased
loans. This may be accomplished by the sellers taking back
any loans that become delinquent.
In addition to the amounts presented in the tables above,
Citi has recorded a repurchase reserve for its potential
repurchases or make-whole liability regarding residential
mortgage representation and warranty claims related to its
whole loan sales to U.S. government-sponsored agencies and,
to a lesser extent, private investors. The repurchase reserve
was approximately $12 million and $11 million at
December 31, 2024 and 2023, respectively, and these amounts
are included in Other liabilities on the Consolidated Balance
Sheet.
Securities Lending Indemnifications
Owners of securities frequently lend those securities for a fee
to other parties who may sell them short or deliver them to
another party to satisfy some other obligation. Banks may
administer such securities lending programs for their clients.
Securities lending indemnifications are issued by the bank to
guarantee that a securities lending customer will be made
whole in the event that the security borrower does not return
the security subject to the lending agreement and collateral
held is insufficient to cover the market value of the security.
Card Merchant Processing
Card merchant processing guarantees represent the Company’s
indirect obligations in connection with (i) providing
transaction processing services to various merchants with
respect to its private label cards and (ii) potential liability for
bank card transaction processing services. The nature of the
liability in either case arises as a result of a billing dispute
between a merchant and a cardholder that is ultimately
resolved in the cardholder’s favor. The merchant is liable to
refund the amount to the cardholder. In general, if the card
processing company is unable to collect this amount from the
merchant, the card processing company bears the loss for the
amount of the credit or refund paid to the cardholder.
With regard to (i) above, Citi has the primary contingent
liability with respect to its portfolio of private label merchants.
The risk of loss is mitigated as the cash flows between Citi and
the merchant are settled on a net basis, and Citi has the right to
offset any payments with cash flows otherwise due to the
merchant. To further mitigate this risk, Citi may delay
settlement, require a merchant to make an escrow deposit,
include event triggers to provide Citi with more financial and
operational control in the event of the financial deterioration
of the merchant or require various credit enhancements
(including letters of credit and bank guarantees). In the
unlikely event that a private label merchant is unable to deliver
products, services or a refund to its private label cardholders,
Citi is contingently liable to credit or refund cardholders.
With regard to (ii) above, Citi has a potential liability for
bank card transactions where Citi provides the transaction
processing services as well as those where a third party
provides the services and Citi acts as a secondary guarantor,
should that processor fail to perform.
Citi’s maximum potential contingent liability related to
both bank card and private label merchant processing services
is estimated to be the total volume of card transactions that
meet the requirements to be valid charge-back transactions at
any given time. At December 31, 2024 and 2023, this
maximum potential exposure was estimated to be
$124.3 billion and $138.0 billion, respectively.
However, Citi believes that the maximum exposure is not
representative of the actual potential loss exposure based on its
historical experience. This contingent liability is unlikely to
arise, as most products and services are delivered when
purchased and amounts are refunded when items are returned
295
to merchants. Citi assesses the probability and amount of its
contingent liability related to merchant processing based on
the financial strength of the primary guarantor, the extent and
nature of unresolved charge-backs and its historical loss
experience. At December 31, 2024 and 2023, the losses
incurred and the carrying amounts of Citi’s contingent
obligations related to merchant processing activities were
immaterial.
Credit Card Arrangements with Partners
Citi, in one of its credit card partner arrangements, provides
guarantees to the partner regarding the volume of certain
customer originations and a minimum revenue target to be
achieved by the program during the term of the agreement. To
the extent that such origination and revenue targets are not
met, the guarantees serve to compensate the partner for certain
payments that otherwise would have been generated in
connection with such originations and revenues generated by
the program.
Other Guarantees and Indemnifications
Credit Card Protection Programs
Citi, through its credit card businesses, provides various
cardholder protection programs on several of its card products,
including programs that provide coverage for certain losses
associated with purchased products, and protection for certain
travel-related purchases. These guarantees are not included in
the table, since the total outstanding amount of the guarantees
and Citi’s maximum exposure to loss cannot be quantified.
The protection is limited to certain types of purchases and
losses, and it is not possible to quantify the purchases that
would qualify for these benefits at any given time. Citi
assesses the probability and amount of its potential liability
related to these programs based on the extent and nature of its
historical loss experience. At December 31, 2024 and 2023,
the actual and estimated losses incurred and the carrying value
of Citi’s obligations related to these programs were
immaterial.
Guarantees of Subsidiaries
The Company, on a contract-by-contract basis, may enter into
agreements that contain indemnifications between legal
entities within the consolidated group, whereupon payment
may become due if certain external events occur. In the fourth
quarter of 2024, the Company entered into an agreement that
indemnifies certain subsidiaries of the Company against
certain matters related to the business operated by the
Company through other subsidiaries, including certain existing
and future legal actions and other matters, such as tax matters.
Certain of such indemnification obligations have no stated
expiration date and are not subject to specific limitations on
the maximum potential amount of future payments that the
Company could be required to make. The Company is not able
to estimate the maximum potential amount of future payments
to be made under this agreement because the triggering events
are not predictable.
Other Representation and Warranty Indemnifications
In the normal course of business, Citi provides standard
representations and warranties to counterparties in contracts in
connection with numerous transactions and also provides
indemnifications, including indemnifications that protect the
counterparties to the contracts in the event that additional
taxes are owed, due either to a change in the tax law or an
adverse interpretation of the tax law. Counterparties to these
transactions provide Citi with comparable indemnifications.
While such representations, warranties and indemnifications
are essential components of many contractual relationships,
they do not represent the underlying business purpose for the
transactions. The indemnification clauses are often standard
contractual terms related to Citi’s own performance under the
terms of a contract and are entered into in the normal course of
business based on an assessment that the risk of loss is remote.
Often these clauses are intended to ensure that terms of a
contract are met at inception. No compensation is received for
these standard representations and warranties, and it is not
possible to determine their fair value because they rarely, if
ever, result in a payment. In many cases, there are no stated or
notional amounts included in the indemnification clauses, and
the contingencies potentially triggering the obligation to
indemnify have not occurred and are not expected to occur. As
a result, these indemnifications are not included in the tables
above.
Value-Transfer Networks (Including Exchanges and Clearing
Houses) (VTNs)
Citi is a member of, or shareholder in, hundreds of value-
transfer networks (VTNs) (payment, clearing and settlement
systems as well as exchanges) around the world. As a
condition of membership, many of these VTNs require that
members stand ready to pay a pro rata share of the losses
incurred by the organization due to another member’s default
on its obligations. Citi’s potential obligations may be limited
to its membership interests in the VTNs, contributions to the
VTN’s funds, or, in certain narrow cases, to the full pro rata
share. The maximum exposure is difficult to estimate as this
would require an assessment of claims that have not yet
occurred; however, Citi believes the risk of loss is remote
given historical experience with the VTNs. Accordingly, Citi’s
participation in VTNs is not reported in the guarantees tables
above, and there are no amounts reflected on the Consolidated
Balance Sheet as of December 31, 2024 or 2023 for potential
obligations that could arise from Citi’s involvement with VTN
associations.
Long-Term Care Insurance Indemnification
In 2000, Travelers Life & Annuity (Travelers), then a
subsidiary of Citi, entered into a reinsurance agreement to
transfer the risks and rewards of its long-term care (LTC)
business to GE Life (now Genworth Financial Inc., or
Genworth), then a subsidiary of the General Electric Company
(GE). As part of this transaction, the reinsurance obligations
were provided by two regulated insurance subsidiaries of GE
Life, which funded two collateral trusts with securities.
Presently, as discussed below, the trusts are referred to as the
Genworth Trusts.
296
As part of GE’s spin-off of Genworth in 2004, GE
retained the risks and rewards associated with the 2000
Travelers reinsurance agreement by providing a reinsurance
contract to Genworth through GE’s Union Fidelity Life
Insurance Company (UFLIC) subsidiary that covers the
Travelers LTC policies. In addition, GE provided a capital
maintenance agreement in favor of UFLIC that is designed to
assure that UFLIC will have the funds to pay its reinsurance
obligations. As a result of these reinsurance agreements and
the spin-off of Genworth, Genworth has reinsurance protection
from UFLIC (supported by GE) and has reinsurance
obligations in connection with the Travelers LTC policies. As
noted below, the Genworth reinsurance obligations now
benefit Brighthouse Financial, Inc. (Brighthouse). While
neither Brighthouse nor Citi are direct beneficiaries of the
capital maintenance agreement between GE and UFLIC,
Brighthouse and Citi benefit indirectly from the existence of
the capital maintenance agreement, which helps assure that
UFLIC will continue to have funds necessary to pay its
reinsurance obligations to Genworth.
In connection with Citi’s 2005 sale of Travelers to
MetLife Inc. (MetLife), Citi provided an indemnification to
MetLife for losses (including policyholder claims) relating to
the LTC business for the entire term of the Travelers LTC
policies, which, as noted above, are reinsured by subsidiaries
of Genworth. In 2017, MetLife spun off its retail insurance
business to Brighthouse. As a result, the Travelers LTC
policies now reside with Brighthouse. The original reinsurance
agreement between Travelers (now Brighthouse) and
Genworth remains in place and Brighthouse is the sole
beneficiary of the Genworth Trusts. The Genworth Trusts are
designed to provide collateral to Brighthouse in an amount
equal to the statutory liabilities of Brighthouse in respect of
the Travelers LTC policies. The assets in the Genworth Trusts
are evaluated and adjusted periodically to ensure that the fair
value of the assets continues to provide collateral in an amount
equal to these estimated statutory liabilities, as the liabilities
change over time.
If both (i) Genworth fails to perform under the original
Travelers/GE Life reinsurance agreement for any reason,
including its insolvency or the failure of UFLIC to perform
under its reinsurance contract or GE to perform under the
capital maintenance agreement, and (ii) the assets of the two
Genworth Trusts are insufficient or unavailable, then Citi,
through its LTC reinsurance indemnification, must reimburse
Brighthouse for any losses incurred in connection with the
LTC policies. Since both events would have to occur before
Citi would become responsible for any payment to
Brighthouse pursuant to its indemnification obligation, and the
likelihood of such events occurring is currently not probable,
there is no liability reflected on the Consolidated Balance
Sheet as of December 31, 2024 and 2023 related to this
indemnification. However, if both events become reasonably
possible (meaning more than remote but less than probable),
Citi will be required to estimate and disclose a reasonably
possible loss or range of loss to the extent that such an
estimate could be made. In addition, if both events become
probable, Citi will be required to accrue for such liability in
accordance with applicable accounting principles.
Futures and Over-the-Counter Derivatives Clearing
Citi provides clearing services on central clearing parties
(CCP) for clients that need to clear exchange-traded and over-
the-counter (OTC) derivatives contracts with CCPs. Based on
all relevant facts and circumstances, Citi has concluded that it
acts as an agent for accounting purposes in its role as clearing
member for these client transactions. As such, Citi does not
reflect the underlying exchange-traded or OTC derivatives
contracts in its Consolidated Financial Statements. See Note
24 for a discussion of Citi’s derivatives activities that are
reflected in its Consolidated Financial Statements.
As a clearing member, Citi collects and remits cash and
securities collateral (margin) between its clients and the
respective CCP. In certain circumstances, Citi collects a higher
amount of cash (or securities) from its clients than it needs to
remit to the CCPs. This excess cash is then held at depository
institutions such as banks or carry brokers.
There are two types of margin: initial and variation.
Where Citi obtains benefits from or controls cash initial
margin (e.g., retains an interest spread), cash initial margin
collected from clients and remitted to the CCP or depository
institutions is reflected within Brokerage payables (payables
to customers) and Brokerage receivables (receivables from
brokers, dealers and clearing organizations) or Cash and due
from banks, respectively.
However, for exchange-traded and OTC-cleared
derivatives contracts where Citi does not obtain benefits from
or control the client cash balances, the client cash initial
margin collected from clients and remitted to the CCP or
depository institutions is not reflected on Citi’s Consolidated
Balance Sheet. These conditions are met when Citi has
contractually agreed with the client that (i) Citi will pass
through to the client all interest paid by the CCP or depository
institutions on the cash initial margin, (ii) Citi will not utilize
its right as a clearing member to transform cash margin into
other assets, (iii) Citi does not guarantee and is not liable to
the client for the performance of the CCP or the depository
institution and (iv) the client cash balances are legally isolated
from Citi’s bankruptcy estate. The total amount of cash initial
margin collected and remitted in this manner was
approximately $14.9 billion and $17.8 billion as of
December 31, 2024 and 2023, respectively.
Variation margin due from clients to the respective CCP,
or from the CCP to clients, reflects changes in the value of the
client’s derivative contracts for each trading day. As a clearing
member, Citi is exposed to the risk of non-performance by
clients (e.g., failure of a client to post variation margin to the
CCP for negative changes in the value of the client’s
derivative contracts). In the event of non-performance by a
client, Citi would move to close out the client’s positions. The
CCP would typically utilize initial margin posted by the client
and held by the CCP, with any remaining shortfalls required to
be paid by Citi as clearing member. Citi generally holds
incremental cash or securities margin posted by the client,
which would typically be expected to be sufficient to mitigate
Citi’s credit risk in the event that the client fails to perform.
As required by ASC 860-30-25-5, securities collateral
posted by clients is not recognized on Citi’s Consolidated
Balance Sheet.
297
FICC Sponsored Member Repo Program
Citi acts as a sponsoring member of the Government
Securities Division of the Fixed Income Clearing Corporation
(FICC) to clear eligible resale and repurchase agreements on
behalf of its clients that become sponsored members of the
FICC. Citi, as sponsoring member, is required to provide a
guarantee to the FICC with respect to the prompt payment and
performance of its sponsored members. Because Citi obtains a
security interest in the cash or high-quality securities collateral
that the clients place with the clearing house, Citi expects the
risk of loss from this guarantee to be remote. See Note 12 for
additional information on Citi’s resale and repurchase
agreements, including risk mitigation practices for these
transactions.
Carrying Value—Guarantees and Indemnifications
At December 31, 2024 and 2023, the total carrying amounts of
the liabilities related to the guarantees and indemnifications
included in the tables above amounted to approximately $1.0
billion and $1.2 billion, respectively. The carrying value of
financial and performance guarantees is included in Other
liabilities. For loans sold with recourse, the carrying value of
the liability is included in Other liabilities.
Collateral
Cash collateral available to Citi to reimburse losses realized
under these guarantees and indemnifications amounted to
$49.0 billion and $52.5 billion at December 31, 2024 and
2023, respectively. Securities and other marketable assets held
as collateral amounted to $62.5 billion and $67.7 billion at
December 31, 2024 and 2023, respectively. The majority of
collateral is held to reimburse losses realized under securities
lending indemnifications. In addition, letters of credit in favor
of Citi held as collateral amounted to $3.1 billion and
$3.1 billion at December 31, 2024 and 2023, respectively.
Other property may also be available to Citi to cover losses
under certain guarantees and indemnifications; however, the
value of such property has not been determined.
Performance Risk
Citi evaluates the performance risk of its guarantees based on
the assigned referenced counterparty internal or external
ratings. Where external ratings are used, investment-grade
ratings are considered to be Baa/BBB and above, while
anything below is considered non-investment grade. Citi’s
internal ratings are in line with the related external rating
system. On certain underlying referenced assets or entities,
ratings are not available. Such referenced assets are included
in the “not rated” category. The maximum potential amount of
the future payments related to the outstanding guarantees is
determined to be the notional amount of these contracts, which
is the par amount of the assets guaranteed.
Presented in the tables below are the maximum potential
amounts of future payments that are classified based on
internal and external credit ratings. The determination of the
maximum potential future payments is based on the notional
amount of the guarantees without consideration of possible
recoveries under recourse provisions or from collateral held or
pledged. As such, Citi believes such amounts bear no
relationship to the anticipated losses, if any, on these
guarantees.
Maximum potential amount of future payments
In billions of dollars at December 31, 2024
Investment
grade
Non-
investment
grade
Not
rated
Total
Financial standby letters of credit
$
63.2 $
15.6 $
0.2 $
79.0
Loans sold with recourse
—
—
1.0
1.0
Other
—
8.4
—
8.4
Total
$
63.2 $
24.0 $
1.2 $
88.4
Maximum potential amount of future payments
In billions of dollars at December 31, 2023
Investment
grade
Non-
investment
grade
Not
rated
Total
Financial standby letters of credit
$
70.5 $
10.8 $
— $
81.3
Loans sold with recourse
—
—
1.8
1.8
Other
—
7.7
—
7.7
Total
$
70.5 $
18.5 $
1.8 $
90.8
298
Credit Commitments and Lines of Credit
The table below summarizes Citigroup’s credit commitments:
In millions of dollars
U.S.
Outside of
U.S.(1)
December 31,
2024
December 31,
2023
Commercial and similar letters of credit
$
607 $
3,424 $
4,031 $
5,345
One- to four-family residential mortgages
489
478
967
1,245
Revolving open-end loans secured by one- to four-family residential properties
5,253
18
5,271
5,495
Commercial real estate, construction and land development
12,599
1,508
14,107
15,266
Credit card lines
618,051
58,698
676,749
677,005
Commercial and other consumer loan commitments
209,032
116,297
325,329
312,300
Other commitments and contingencies(2)
4,846
62
4,908
5,146
Total
$
850,877 $
180,485 $
1,031,362 $
1,021,802
(1)
Consumer commitments related to the business HFS countries under sales agreements are reflected in their original categories until the respective sales are
completed.
(2)
Other commitments and contingencies include commitments to purchase certain debt and equity securities.
The majority of unused commitments are contingent upon
customers maintaining specific credit standards. Commercial
commitments generally have floating interest rates and fixed
expiration dates and may require payment of fees. Such fees
(net of certain direct costs) are deferred and, upon exercise of
the commitment, amortized over the life of the loan or, if
exercise is deemed remote, amortized over the commitment
period.
Commercial and Similar Letters of Credit
A commercial letter of credit is an instrument by which
Citigroup substitutes its credit for that of a customer to enable
the customer to finance the purchase of goods or to incur other
commitments. Citigroup issues a letter on behalf of its client to
a supplier and agrees to pay the supplier upon presentation of
documentary evidence that the supplier has performed in
accordance with the terms of the letter of credit. When a letter
of credit is drawn, the customer is then required to reimburse
Citigroup.
One- to Four-Family Residential Mortgages
A one- to four-family residential mortgage commitment is a
written confirmation from Citigroup to a seller of a property
that the bank will advance the specified sums enabling the
buyer to complete the purchase.
Revolving Open-End Loans Secured by One- to Four-Family
Residential Properties
Revolving open-end loans secured by one- to four-family
residential properties are essentially home equity lines of
credit. A home equity line of credit is a loan secured by a
primary residence or second home to the extent of the excess
of fair market value over the debt outstanding for the first
mortgage.
Commercial Real Estate, Construction and Land
Development
Commercial real estate, construction and land development
include unused portions of commitments to extend credit for
the purpose of financing commercial and multifamily
residential properties as well as land development projects.
Both secured-by-real-estate and unsecured commitments
are included in this line, as well as undistributed loan
proceeds, where there is an obligation to advance for
construction progress payments. However, this line only
includes those extensions of credit that, once funded, will be
classified as Total loans, net on the Consolidated Balance
Sheet.
Credit Card Lines
Citigroup provides credit to customers by issuing credit cards.
The credit card lines are cancelable by providing notice to the
cardholder or without such notice as permitted by local law.
Commercial and Other Consumer Loan Commitments
Commercial and other consumer loan commitments include
overdraft and liquidity facilities as well as commercial
commitments to make or purchase loans, purchase third-party
receivables, provide note issuance or revolving underwriting
facilities and invest in the form of equity.
Other Commitments
As a Federal Reserve member bank, Citi is required to
subscribe to half of a certain amount of shares issued by its
Federal Reserve District Bank. As of December 31, 2024 and
2023, Citi holds shares with a carrying value of $4.5 billion,
with the remaining half subject to call by the Federal Reserve
District Bank Board.
In the normal course of business, Citi enters into reverse
repurchase and securities borrowing agreements, as well as
repurchase and securities lending agreements, which settle at a
future date. At December 31, 2024 and 2023, Citi had
approximately $117.7 billion and $120.9 billion of unsettled
reverse repurchase and securities borrowing agreements, and
approximately $126.8 billion and $96.4 billion of unsettled
repurchase and securities lending agreements, respectively.
See Note 12 for a further discussion of securities purchased
under agreements to resell and securities borrowed, and
securities sold under agreements to repurchase and securities
loaned, including the Company’s policy for offsetting
repurchase and reverse repurchase agreements.
These amounts are not included in the table above.
299
29. LEASES
The Company’s operating leases, where Citi is a lessee,
include real estate, such as office space and branches, and
various types of equipment. These leases may contain renewal
and extension options and early termination features; however,
these options do not impact the lease term unless the Company
is reasonably certain that it will exercise options. These leases
have a weighted-average remaining lease term of
approximately 6.5 years as of December 31, 2024 and 6 years
as of December 31, 2023.
For additional information regarding Citi’s leases, see
Note 1.
The following table presents information on the right-of-
use (ROU) asset and lease liabilities included in Premises and
equipment and Other liabilities, respectively:
In millions of dollars
December 31,
2024
December 31,
2023
ROU asset
$
2,836 $
2,801
Lease liability
3,013
2,974
The Company recognizes fixed lease costs on a straight-
line basis throughout the lease term in the Consolidated
Statement of Income. In addition, variable lease costs are
recognized in the period in which the obligation for those
payments is incurred.
At December 31, 2024, the Company had a future lease
commitment scheduled to commence in April 2025 with fixed
lease payments (undiscounted) totaling approximately
$255 million over a 15-year lease term.
The following table presents the total operating lease
expense (principally for offices, branches and equipment)
included in the Consolidated Statement of Income:
In millions of dollars
Dec. 31,
2024
Dec. 31,
2023
Dec. 31,
2022
Operating lease expense
$
842 $
842 $
852
Variable lease expense
204
208
199
Total lease costs(1)
$
1,046 $
1,050 $
1,051
(1) Balances do not include $9 million, $3 million and $3 million of
sublease income for the years ended December 31, 2024, 2023 and
2022, respectively.
The table below provides the supplemental Statement of
Cash Flows information:
In millions of dollars
December 31,
2024
December 31,
2023
Cash paid for amounts included in
the measurement of lease
liabilities
$
729 $
714
ROU assets obtained in exchange
for new operating lease
liabilities(1)
777
456
(1) Represents non-cash activity and, accordingly, is not reflected in the
Consolidated Statement of Cash Flows.
Citi’s future lease payments are as follows:
In millions of dollars
2025
$
709
2026
636
2027
514
2028
418
2029
317
Thereafter
865
Total future lease payments
$
3,459
Less imputed interest (based on weighted-average
discount rate of 4.1%)
$
(446)
Lease liability
$
3,013
300
30. CONTINGENCIES
Accounting and Disclosure Framework
ASC 450 governs the disclosure and recognition of loss
contingencies, including potential losses from litigation,
regulatory, tax and other matters. ASC 450 defines a “loss
contingency” as “an existing condition, situation, or set of
circumstances involving uncertainty as to possible loss to an
entity that will ultimately be resolved when one or more future
events occur or fail to occur.” It imposes different
requirements for the recognition and disclosure of loss
contingencies based on the likelihood of occurrence of the
contingent future event or events. It distinguishes among
degrees of likelihood using the following three terms:
“probable,” meaning that “the future event or events are likely
to occur”; “remote,” meaning that “the chance of the future
event or events occurring is slight”; and “reasonably possible,”
meaning that “the chance of the future event or events
occurring is more than remote but less than likely.” These
three terms are used below as defined in ASC 450.
Accruals. ASC 450 requires accrual for a loss contingency
when it is “probable that one or more future events will occur
confirming the fact of loss” and “the amount of the loss can be
reasonably estimated.” In accordance with ASC 450,
Citigroup establishes accruals for contingencies, including any
litigation, regulatory or tax matters disclosed herein, when
Citigroup believes it is probable that a loss has been incurred
and the amount of the loss can be reasonably estimated. When
the reasonable estimate of the loss is within a range of
amounts, the minimum amount of the range is accrued, unless
some higher amount within the range is a better estimate than
any other amount within the range. Once established, accruals
are adjusted from time to time, as appropriate, in light of
additional information. The amount of loss ultimately incurred
in relation to those matters may be substantially higher or
lower than the amounts accrued for those matters.
Disclosure. ASC 450 requires disclosure of a loss
contingency if “there is at least a reasonable possibility that a
loss or an additional loss may have been incurred” and there is
no accrual for the loss because the conditions described above
are not met or an exposure to loss exists in excess of the
amount accrued. In accordance with ASC 450, if Citigroup has
not accrued for a matter because Citigroup believes that a loss
is reasonably possible but not probable, or that a loss is
probable but not reasonably estimable, and the reasonably
possible loss is material, it discloses the loss contingency. In
addition, Citigroup discloses matters for which it has accrued
if it believes a reasonably possible exposure to material loss
exists in excess of the amount accrued. In accordance with
ASC 450, Citigroup’s disclosure includes an estimate of the
reasonably possible loss or range of loss for those matters as to
which an estimate can be made. ASC 450 does not require
disclosure of an estimate of the reasonably possible loss or
range of loss where an estimate cannot be made. Neither
accrual nor disclosure is required for losses that are deemed
remote.
Litigation, Regulatory and Other Contingencies
Overview. In addition to the matters described below, in the
ordinary course of business, Citigroup, its affiliates and
subsidiaries, and current and former officers, directors and
employees (for purposes of this section, sometimes
collectively referred to as Citigroup and Related Parties)
routinely are named as defendants in, or as parties to, various
legal actions and proceedings. Certain of these actions and
proceedings assert claims or seek relief in connection with
alleged violations of consumer protection, fair lending,
securities, banking, antifraud, antitrust, anti-money laundering,
employment and other statutory and common laws. Certain of
these actual or threatened legal actions and proceedings
include claims for substantial or indeterminate compensatory
or punitive damages, or for injunctive relief, and in some
instances seek recovery on a class-wide basis.
In the ordinary course of business, Citigroup and Related
Parties also are subject to governmental and regulatory
examinations, information-gathering requests, investigations
and proceedings (both formal and informal), certain of which
may result in adverse judgments, settlements, fines, penalties,
restitution, disgorgement, injunctions or other relief. In
addition, certain affiliates and subsidiaries of Citigroup are
banks, registered broker-dealers, futures commission
merchants, investment advisors or other regulated entities and,
in those capacities, are subject to regulation by various U.S.,
state and foreign securities, banking, commodity futures,
consumer protection and other regulators. In connection with
formal and informal inquiries by these regulators, Citigroup
and such affiliates and subsidiaries receive numerous requests,
subpoenas and orders seeking documents, testimony and other
information in connection with various aspects of their
regulated activities. From time to time Citigroup and Related
Parties also receive grand jury subpoenas and other requests
for information or assistance, formal or informal, from federal
or state law enforcement agencies including, among others,
various United States Attorneys’ Offices, the Money
Laundering and Asset Recovery Section and other divisions of
the Department of Justice, the Financial Crimes Enforcement
Network of the United States Department of the Treasury, and
the Federal Bureau of Investigation relating to Citigroup and
its customers.
Because of the global scope of Citigroup’s operations and
its presence in countries around the world, Citigroup and
Related Parties are subject to litigation and governmental and
regulatory examinations, information-gathering requests,
investigations and proceedings (both formal and informal) in
multiple jurisdictions with legal, regulatory and tax regimes
that may differ substantially, and present substantially
different risks, from those Citigroup and Related Parties are
subject to in the United States. In some instances, Citigroup
and Related Parties may be involved in proceedings involving
the same subject matter in multiple jurisdictions, which may
result in overlapping, cumulative or inconsistent outcomes.
Citigroup seeks to resolve all litigation, regulatory, tax
and other matters in the manner management believes is in the
best interests of Citigroup and its shareholders, and contests
liability, allegations of wrongdoing and, where applicable, the
amount of damages or scope of any penalties or other relief
sought as appropriate in each pending matter.
301
Inherent Uncertainty of the Matters Disclosed. Certain of
the matters disclosed below involve claims for substantial or
indeterminate damages. The claims asserted in these matters
typically are broad, often spanning a multiyear period and
sometimes a wide range of business activities, and the
plaintiffs’ or claimants’ alleged damages frequently are not
quantified or factually supported in the complaint or statement
of claim. Other matters relate to regulatory investigations or
proceedings, as to which there may be no objective basis for
quantifying the range of potential fine, penalty or other
remedy. As a result, Citigroup is often unable to estimate the
loss in such matters, even if it believes that a loss is probable
or reasonably possible, until developments in the case,
proceeding or investigation have yielded additional
information sufficient to support a quantitative assessment of
the range of reasonably possible loss. Such developments may
include, among other things, discovery from adverse parties or
third parties, rulings by the court on key issues, analysis by
retained experts and engagement in settlement negotiations.
Depending on a range of factors, such as the complexity
of the facts, the novelty of the legal theories, the pace of
discovery, the court’s scheduling order, the timing of court
decisions and the adverse party’s, regulator’s or other
authority’s willingness to negotiate in good faith toward a
resolution, it may be months or years after the filing of a case
or commencement of a proceeding or an investigation before
an estimate of the range of reasonably possible loss can be
made.
Matters as to Which an Estimate Can Be Made. For some
of the matters disclosed below, Citigroup is currently able to
estimate a reasonably possible loss or range of loss in excess
of amounts accrued (if any). For some of the matters included
within this estimation, an accrual has been made because a
loss is believed to be both probable and reasonably estimable,
but a reasonably possible exposure to loss exists in excess of
the amount accrued. In these cases, the estimate reflects the
reasonably possible range of loss in excess of the accrued
amount. For other matters included within this estimation, no
accrual has been made because a loss, although estimable, is
believed to be reasonably possible, but not probable; in these
cases, the estimate reflects the reasonably possible loss or
range of loss. As of December 31, 2024, Citigroup estimates
that the reasonably possible unaccrued loss for these matters
ranges up to approximately $1.3 billion in the aggregate.
These estimates are based on currently available
information. As available information changes, the matters for
which Citigroup is able to estimate will change, and the
estimates themselves will change. In addition, while many
estimates presented in financial statements and other financial
disclosures involve significant judgment and may be subject to
significant uncertainty, estimates of the range of reasonably
possible loss arising from litigation, regulatory and tax
proceedings are subject to particular uncertainties. For
example, at the time of making an estimate, (i) Citigroup may
have only preliminary, incomplete or inaccurate information
about the facts underlying the claim, (ii) its assumptions about
the future rulings of the court, other tribunal or authority on
significant issues, or the behavior and incentives of adverse
parties, regulators or other authorities, may prove to be wrong
and (iii) the outcomes it is attempting to predict are often not
amenable to the use of statistical or other quantitative
analytical tools. In addition, from time to time an outcome
may occur that Citigroup had not accounted for in its estimate
because it had deemed such an outcome to be remote. For all
of these reasons, the amount of loss in excess of amounts
accrued in relation to matters for which an estimate has been
made could be substantially higher or lower than the range of
loss included in the estimate.
Matters as to Which an Estimate Cannot Be Made. For
other matters disclosed below, Citigroup is not currently able
to estimate the reasonably possible loss or range of loss. Many
of these matters remain in very preliminary stages (even in
some cases where a substantial period of time has passed since
the commencement of the matter), with few or no substantive
legal decisions by the court, tribunal or other authority
defining the scope of the claims, the class (if any) or the
potentially available damages or other exposure, and fact
discovery is still in progress or has not yet begun. In many of
these matters, Citigroup has not yet answered the complaint or
statement of claim or asserted its defenses, nor has it engaged
in any negotiations with the adverse party (whether a
regulator, taxing authority or a private party). For all these
reasons, Citigroup cannot at this time estimate the reasonably
possible loss or range of loss, if any, for these matters.
Opinion of Management as to Eventual Outcome. Subject
to the foregoing, it is the opinion of Citigroup’s management,
based on current knowledge and after taking into account its
current accruals, that the eventual outcome of all matters
described in this Note would not likely have a material adverse
effect on the consolidated financial condition of Citigroup.
Nonetheless, given the substantial or indeterminate
amounts sought in certain of these matters, and the inherent
unpredictability of such matters, an adverse outcome in certain
of these matters could, from time to time, have a material
adverse effect on Citigroup’s consolidated results of
operations or cash flows in particular quarterly or annual
periods.
Foreign Exchange Matters
In 2019, two applications, captioned MICHAEL O’HIGGINS
FX CLASS REPRESENTATIVE LIMITED v. BARCLAYS
BANK PLC AND OTHERS and PHILLIP EVANS v.
BARCLAYS BANK PLC AND OTHERS, were made to the
U.K.’s Competition Appeal Tribunal requesting permission to
commence collective proceedings against Citigroup, Citibank,
and other defendants. On February 8, 2024, Michael
O’Higgins FX Class Representative Limited withdrew its
application. The Evans application seeks compensatory
damages for losses alleged to have arisen from the actions at
issue in the European Commission’s foreign exchange spot
trading infringement decision (European Commission
Decision of May 16, 2019 in Case AT.40135-FOREX (Three
Way Banana Split) C(2019) 3631 final). After claimants
appealed the U.K. Competition Appeal Tribunal’s judgment
on certification, the Court of Appeal issued a judgment in
November 2023 that the U.K. Competition Appeal Tribunal
should not have declined to certify the proceedings. On April
17, 2024, the U.K. Supreme Court granted the defendants’
permission to appeal the Court of Appeal’s judgment. On
September 2, 2024, the U.K. Supreme Court scheduled a
302
hearing of the appeal for April 1–2, 2025. Additional
information concerning these actions is publicly available in
court filings under the case numbers 1329/7/7/19 and
1336/7/7/19 in the U.K. Competition Appeal Tribunal,
CA-2022-002002 and CA-2022-002003 in the Court of
Appeal, and UKSC 2023/0177 in the U.K. Supreme Court.
In 2019, a putative class action was filed against Citibank
and other defendants, captioned J WISBEY & ASSOCIATES
PTY LTD v. UBS AG & ORS, in the Federal Court of
Australia. Plaintiffs allege that defendants manipulated the
foreign exchange markets. Plaintiffs assert claims under
antitrust laws and seek compensatory damages and declaratory
and injunctive relief. Additional information concerning this
action is publicly available in court filings under the docket
number VID567/2019.
In 2019, two motions for certification of class actions
filed against Citigroup, Citibank, Citicorp, and other
defendants were consolidated, under the caption GERTLER,
ET AL. v. DEUTSCHE BANK AG, in the Tel Aviv Central
District Court in Israel. Plaintiffs allege that defendants
manipulated the foreign exchange markets. In August 2021,
Citibank’s motion to dismiss plaintiffs’ petition for
certification was denied. In April 2022, the Supreme Court of
Israel denied Citibank’s motion for leave to appeal the Central
District Court’s denial of its motion to dismiss. On February
20, 2024, the parties filed a motion for the Tel Aviv Central
District Court to approve a settlement. On September 15,
2024, the parties responded to objections filed in connection
with the proposed settlement. On December 26, 2024, the
court held a hearing to consider whether to approve the
settlement. Additional information concerning this action is
publicly available in court filings under the docket number CA
29013-09-18.
On December 13, 2021, a Dutch foundation filed a writ of
summons against Citigroup, Citibank, and other defendants,
captioned STICHTING FX CLAIMS v. NATWEST
MARKETS N.V., ET AL., in the Amsterdam District Court in
the Netherlands. Claimant seeks damages on behalf of certain
institutional investors for losses alleged to have arisen from
the actions at issue in the European Commission’s foreign
exchange spot trading infringement decision (European
Commission Decision of May 16, 2019 in Case AT.40135-
FOREX (Three Way Banana Split) C(2019) 3631 final). In
March 2023, the court dismissed claims made on behalf of
parties located outside the Netherlands and permitted the other
claims to go forward. Claimant appealed that decision and in
September 2023 and January 2025 filed new writs of
summons asserting similar claims on behalf of additional
institutional investors. Additional information concerning this
action is publicly available in court filings under the case
numbers C/13/718639 / HA ZA 22-460 and C/13/743903 / HA
ZA 23-1143 in the Amsterdam District Court and under the
case number 200.329.379/01 in the Amsterdam Court of
Appeal.
Fund Administration Matter
In 2016, an arbitration proceeding was commenced in Brazil’s
Market Arbitration Chamber against an asset manager of a
Brazilian real estate investment fund and Citibank
Distribuidora de Titulos e Valores Mob S.A. (Citi DTVM).
The claimant alleged that the asset manager had engaged in
fraud in connection with investments in real estate projects
and that Citi DTVM, as fund administrator, should be held
jointly and severally liable for its investment losses. In 2020,
the arbitration panel concluded that the asset manager had
engaged in fraudulent activities in certain real estate projects
and that Citi DTVM was jointly and severally liable pursuant
to the terms of the fund administration contract. The damages
phase of the arbitration proceeding is ongoing.
Greek Pension Claims
Beginning in 2015, four claims were filed in the Court of First
Instance of Athens by former Citi employees against Citibank
Europe PLC (as a successor to Citibank International PLC,
Athens branch) regarding the treatment of their pension
benefits following the sale of Citi’s consumer operations in
Greece.
In SOULTANA AGGELAKI & OTHERS v. CITIBANK
EUROPE PUBLIC LIMITED COMPANY, in February 2017,
the Court of First Instance of Athens issued a decision
rejecting the claims. In January 2019, the Athens Court of
Appeal affirmed the decision of the Court of First Instance of
Athens. On May 14, 2024, following the further appeal by the
claimants, the Greek Supreme Court dismissed some claims,
allowed others to proceed, and referred others back to the
Athens Court of Appeal for further consideration of the
calculation methodology. The Court of Appeal held a hearing
on February 18, 2025. Additional information concerning this
action is available in court filings under the docket numbers
70/2019 in the Athens Court of Appeal and 430/2024 in the
Greek Supreme Court.
In AGGELAKIS CHRISTOS & OTHERS v. CITIBANK
EUROPE PUBLIC LIMITED COMPANY, in February 2017,
the Court of First Instance of Athens dismissed the claims. On
appeal, the Athens Court of Appeal initially stayed the case
pending the outcome of the appeal filed with the Supreme
Court in SOULTANA AGGELAKI & OTHERS v.
CITIBANK EUROPE PUBLIC LIMITED COMPANY and
has now scheduled a hearing for March 18, 2025. Additional
information is available in court filings under the docket
number 4716/2020 in the Athens Court of Appeal.
In GIACHOUNTOUDI & OTHERS v. CITIBANK
EUROPE PUBLIC LIMITED COMPANY, on October 15,
2024, the Court of First Instance of Athens issued a decision
rejecting the claims. The claimants have appealed, and the
Court of Appeal has scheduled a hearing for March 18, 2025.
This matter is filed under the docket numbers 2808/92/2019 in
the Court of First Instance of Athens and 1086/771/2025 in the
Athens Court of Appeal.
In GLYKAS & OTHERS v. CITIBANK EUROPE
PUBLIC LIMITED COMPANY, in August 2017, the Court of
First Instance of Athens dismissed the claims. On appeal, the
Athens Court of Appeal initially stayed the action pending the
outcome of the appeal filed with the Supreme Court in
SOULTANA AGGELAKI & OTHERS v. CITIBANK
EUROPE PUBLIC LIMITED COMPANY and has scheduled
a hearing for March 4, 2025. Additional information is
available in court filings under the docket number 4717/2020
in the Athens Court of Appeal.
303
Interbank Offered Rates-Related Litigation and Other
Matters
Citigroup and Citibank, along with other U.S. Dollar (USD)
LIBOR panel banks, are defendants in a multi-district
litigation proceeding before the United States District Court
for the Southern District of New York captioned IN RE
LIBOR-BASED FINANCIAL INSTRUMENTS
ANTITRUST LITIGATION. The putative class actions and
certain of the individual actions have been dismissed as to
Citigroup and Citibank based on pretrial rulings or following
settlements. Plaintiffs with surviving claims against Citigroup
and Citibank assert claims under the Sherman Act and state
law based on allegations that defendants suppressed or
otherwise manipulated USD LIBOR. Plaintiffs seek
compensatory damages and other relief. Additional
information concerning these actions and related actions and
appeals is publicly available in court filings under the docket
numbers 11 MD 2262 (S.D.N.Y.) (Buchwald, J.) and 17-1569
(2d Cir.).
In August 2020, individual borrowers and consumers of
loans and credit cards filed an action against Citigroup,
Citibank, CGMI, and other defendants, captioned
MCCARTHY, ET AL. v. INTERCONTINENTAL
EXCHANGE, INC., ET AL., in the United States District
Court for the Northern District of California. Plaintiffs allege
that defendants conspired to fix ICE LIBOR, assert claims
under the Sherman Act and the Clayton Act, and seek
declaratory relief, injunctive relief, and treble damages. In
October 2022, plaintiffs filed an amended complaint. In
October 2023, the district court granted defendants’ motion to
dismiss the amended complaint with prejudice for all claims
against Citigroup, Citibank, and CGMI. On December 9,
2024, the United States Court of Appeals for the Ninth Circuit
affirmed the district court’s ruling in all respects. On
December 24, 2024, plaintiffs filed a petition for rehearing en
banc. Additional information concerning this action is publicly
available in court filings under the docket numbers 20-
CV-5832 (N.D. Cal.) (Donato, J.) and 23-3458 (9th Cir.).
Interchange Fee Litigation
Beginning in 2005, several putative class actions were filed
against Citigroup, Citibank, and Citicorp, together with Visa,
MasterCard, and other banks and their affiliates, in various
federal district courts and consolidated with other related
individual cases in a multi-district litigation proceeding in the
United States District Court for the Eastern District of New
York. This proceeding is captioned IN RE PAYMENT CARD
INTERCHANGE FEE AND MERCHANT DISCOUNT
ANTITRUST LITIGATION.
The plaintiffs, merchants that accept Visa and MasterCard
branded payment cards, as well as various membership
associations that claim to represent certain groups of
merchants, allege, among other things, that defendants have
engaged in conspiracies to set the price of interchange and
merchant discount fees on credit and debit card transactions
and to restrain trade unreasonably through various Visa and
MasterCard rules governing merchant conduct, all in violation
of Section 1 of the Sherman Act and certain California
statutes. Plaintiffs further allege violations of Section 2 of the
Sherman Act. Supplemental complaints also were filed against
defendants in the putative class actions alleging that Visa’s
and MasterCard’s respective initial public offerings were
anticompetitive and violated Section 7 of the Clayton Act, and
that MasterCard’s initial public offering constituted a
fraudulent conveyance.
In 2014, the district court entered a final judgment
approving the terms of a class settlement. Various objectors
appealed from the final class settlement approval order to the
United States Court of Appeals for the Second Circuit. In
2016, the Court of Appeals reversed the district court’s
approval of the class settlement and remanded for further
proceedings. The district court thereafter appointed separate
counsel for a putative class seeking damages and a putative
class seeking injunctive relief. Amended or new complaints on
behalf of the putative classes and various individual merchants
were subsequently filed, including a further amended
complaint on behalf of a putative damages class and a new
complaint on behalf of a putative injunctive class, both of
which named Citigroup, Citibank, and Citicorp LLC. In
addition, numerous merchants have filed amended or new
complaints against Visa, MasterCard, and in some instances
one or more issuing banks, including Citigroup, Citibank, and
Citicorp Payment Services.
In 2019, the district court granted the damages class
plaintiffs’ motion for final approval of a new settlement with
the defendants. The settlement involves the damages class
only and does not settle the claims of the injunctive relief class
or any actions brought on a non-class basis by individual
merchants. The settlement provides for a cash payment to the
damages class of $6.24 billion, later reduced by $700 million
based on the transaction volume of class members that opted
out from the settlement. Several merchants and merchant
groups appealed the final approval order. In September 2021,
the court granted the injunctive relief class plaintiffs’ motion
to certify a non-opt-out class. On March 15, 2023, the United
States Court of Appeals for the Second Circuit affirmed the
district court’s final approval of the damages class settlement
and remanded the case back to the district court for
administration of the settlement claims process. On January 8,
2024, the district court issued decisions on two pending
motions for summary judgment. It granted in part and denied
in part defendants’ motions for summary judgment. The
district court also denied Mastercard’s motion for summary
judgment as to Mastercard’s lack of market power. From
February to April 2024, the court issued opinions regarding
the parties’ remaining respective summary judgment motions.
On March 26, 2024, the injunctive relief class plaintiffs filed a
motion seeking preliminary approval of the parties’ March 25,
2024, agreement to settle the injunctive relief class claims. On
June 25, 2024, the district court denied the motion for
preliminary approval of the injunctive relief class settlement.
Beginning on June 25, 2024, the district court issued orders
concluding the multi-district litigation proceedings and
remanding the cases to other districts in GRUBHUB
HOLDINGS, INC., ET AL. v. VISA INC., ET AL.; MIRAGE
WINE & SPIRITS, INC., ET AL. v. VISA INC., ET AL.;
TARGET CORP., ET AL. v. VISA INC., ET AL.; and 7-
ELEVEN, INC., ET AL. v. VISA INC., ET AL. Additional
information concerning these actions is publicly available in
court filings under the docket numbers 1:05-md-01720
304
(E.D.N.Y.) (Brodie, J.); 1:13-cv-04442 (S.D.N.Y.)
(Hellerstein, J.); 1:13-cv-03477 (S.D.N.Y.) (Hellerstein, J.);
and 1:19-cv-07273 (N.D. Ill.) (Chang, J.).
Interest Rate and Credit Default Swap Litigation
Beginning in 2015, Citigroup, Citibank, CGMI, CGML and
numerous other parties were named as defendants in a number
of industry-wide putative class actions related to interest rate
swap (IRS) trading. These actions have been consolidated in
the United States District Court for the Southern District of
New York under the caption IN RE INTEREST RATE
SWAPS ANTITRUST LITIGATION. The actions allege that
defendants colluded to prevent the development of exchange-
like trading for IRS and assert federal and state antitrust claims
and claims for unjust enrichment. Also consolidated under the
same caption are individual actions filed by swap execution
facilities, asserting federal and state antitrust claims, as well as
claims for unjust enrichment and tortious interference with
business relations. Plaintiffs in these actions seek treble
damages, fees, costs, and injunctive relief. Lead plaintiffs in
the class action moved for class certification in 2019 and
subsequently filed an amended complaint. On December 15,
2023, the court denied plaintiffs’ motion for class certification.
On July 11, 2024, the district court granted preliminary
approval of the parties’ settlement of the class action. On
October 10, 2024, the district court issued an order granting
the motion to approve preliminarily the plans of allocation and
preliminarily providing for notice to the settlement class.
Additional information concerning these actions is publicly
available in court filings under the docket numbers 18-
CV-5361 (S.D.N.Y.) (Oetken, J.) and 16-MD-2704 (S.D.N.Y.)
(Oetken, J.) and 24-81 (2d Cir.).
Madoff-Related Litigation
In 2008, a Securities Investor Protection Act (SIPA) trustee
was appointed for the SIPA liquidation of Bernard L. Madoff
Investment Securities LLC (BLMIS) in the United States
Bankruptcy Court for the Southern District of New York.
Beginning in 2010, the SIPA trustee commenced actions
against multiple Citi entities, including Citibank, Citicorp
North America, Inc., and CGML, captioned PICARD v.
CITIBANK, N.A., ET AL., seeking recovery of monies that
originated at BLMIS and were allegedly received by the Citi
entities as subsequent transferees.
In February 2022, the SIPA trustee filed an amended
complaint against Citibank, Citicorp North America, Inc., and
CGML. In April 2022, these Citi entities moved to dismiss the
amended complaint, which the bankruptcy court denied. In
November 2022, the remaining Citi entities moved to file an
interlocutory appeal of the bankruptcy court’s decision, which
the district court denied on March 14, 2024, and answered the
amended complaint. Additional information concerning these
actions is publicly available in court filings under the docket
numbers 10-5345 (Bankr. S.D.N.Y.) (Beckerman, J.) and
22-9597 (S.D.N.Y.) (Gardephe, J.).
Beginning in 2010, the British Virgin Islands liquidators
of Fairfield Sentry Limited, whose assets were invested with
BLMIS, commenced multiple actions against CGML, Citibank
(Switzerland) AG, Citibank, NA London, Citivic Nominees
Ltd., Cititrust Bahamas Ltd., and Citibank Korea Inc.,
captioned FAIRFIELD SENTRY LTD., ET AL. v.
CITIGROUP GLOBAL MARKETS LTD., ET AL.;
FAIRFIELD SENTRY LTD., ET AL. v. CITIBANK
(SWITZERLAND) AG, ET AL.; FAIRFIELD SENTRY
LTD., ET AL. v. ZURICH CAPITAL MARKETS
COMPANY, ET AL.; FAIRFIELD SENTRY LTD., ET AL.
v. CITIBANK NA LONDON, ET AL.; FAIRFIELD
SENTRY LTD., ET AL. v. CITIVIC NOMINEES LTD., ET
AL.; FAIRFIELD SENTRY LTD., ET AL. v. DON
CHIMANGO SA, ET AL.; and FAIRFIELD SENTRY LTD.,
ET AL. v. CITIBANK KOREA INC. ET AL., in the United
States Bankruptcy Court for the Southern District of New
York. The actions seek recovery of monies that were allegedly
received directly or indirectly from Fairfield Sentry.
In August 2022, the United States District Court for the
Southern District of New York affirmed various decisions of
the bankruptcy court, which dismissed claims against CGML,
Citibank (Switzerland) AG, Citibank, NA London, Citivic
Nominees Ltd., Cititrust Bahamas Ltd., and Citibank Korea
Inc., and permitted a single claim against Citibank, NA
London, CGML, Citivic Nominees Ltd., and Citibank
(Switzerland) AG to proceed. In September 2022, the
liquidators appealed the district court’s decision dismissing the
liquidators’ claims. In September 2022, CGML, Citibank
(Switzerland) AG, Citibank, NA London, and Citivic
Nominees Ltd. moved for leave to appeal the district court’s
decision permitting the single claim to proceed against them.
In July 2023, the United States Court of Appeals for the
Second Circuit granted CGML, Citibank (Switzerland) AG,
Citivic Nominees Ltd., and Citibank, NA London leave to
appeal the district court’s decision permitting a single claim to
proceed against them and ordered those appeals to be heard in
tandem with the liquidators’ pending consolidated direct
appeal.
In May 2023, the liquidators voluntarily dismissed the
single pending claim against Citibank (Switzerland) AG and
Citivic Nominees Ltd. without prejudice, but the action
continued against other defendants. On January 9, 2025, the
liquidators voluntarily dismissed the entire action with
prejudice, thereby permanently disposing of the single pending
claim the liquidators previously voluntarily dismissed without
prejudice. The claims previously dismissed by the bankruptcy
court against Citibank (Switzerland) AG and Citivic Nominees
Ltd. remain subject to the pending consolidated direct appeal
in the United States Court of Appeals for the Second Circuit
and are unaffected by the liquidators’ voluntary dismissals.
Additional information is publicly available in court filings
under the docket numbers 10-13164, 10-3496, 10-3622,
10-3634, 10-4100, 10-3640, 11-2770, 12-1142, 12-1298
(Bankr. S.D.N.Y.) (Mastando, J.); 19-3911, 19-4267, 19-4396,
19-4484, 19-5106, 19-5135, 19-5109, 21-2997, 21-3243,
21-3526, 21-3529, 21-3530, 21-3998, 21-4307, 21-4498,
21-4496 (S.D.N.Y.) (Broderick, J.); and 22-2101
(consolidated lead appeal), 22-2557, 22-2122, 23-697,
22-2562, 22-2216, 22-2545, 22-2308, 22-2591, 22-2502,
22-2553, 22-2398, 22-2582, 23-965 (consolidated lead
appeal), 23-549, 23-572, 23-573, 23-975, 23-982, 23-987 (2d
Cir.).
305
New York Attorney General Unauthorized Wire Litigation
On January 30, 2024, the New York Attorney General’s
Office filed an action against Citibank captioned THE
PEOPLE OF THE STATE OF NEW YORK v. CITIBANK,
N.A. in the United States District Court for the Southern
District of New York. The action alleges that Citi has failed to
comply with the Electronic Funds Transfer Act (EFTA) and
certain New York state laws in its treatment of unauthorized
wire transfers and seeks an injunction, restitution,
disgorgement of profits, civil penalties under New York state
law, and monetary damages. On April 2, 2024, Citibank filed a
motion to dismiss. On January 21, 2025, the court entered an
order granting in part and denying in part Citibank’s motion to
dismiss, holding that consumer wire transfers are covered by
EFTA. On February 18, 2025, Citibank filed a motion to
certify the court’s order for interlocutory appeal. Additional
information concerning this action is publicly available in
court filings under the docket number 1:24-cv-00659-JPO
(S.D.N.Y.) (Oetken, J.).
Parmalat Litigation
In 2004, an Italian commissioner appointed to oversee the
administration of various Parmalat companies filed a
complaint against Citigroup, Citibank, and related parties,
alleging that the defendants facilitated a number of frauds by
Parmalat insiders. In 2008, a jury rendered a verdict in
Citigroup’s favor and awarded Citi $431 million. In 2019, the
Italian Supreme Court affirmed the decision in the full amount
of $431 million. Citigroup has taken steps to enforce the
judgment in Italian and Belgian courts. Additional information
concerning these actions is publicly available in court filings
under the docket numbers 27618/2014, 4133/2019,
22098/2019, and 3023/2024 (Italy), and 20/3617/A, 20/4007/
A, and C.24.266.T (Belgium).
In 2015, Parmalat filed a claim in an Italian civil court in
Milan claiming damages of €1.8 billion against Citigroup,
Citibank, and related parties. The Milan court dismissed
Parmalat’s claim on grounds that it was duplicative of
Parmalat’s previously unsuccessful claims. In 2019, the Milan
Court of Appeal rejected Parmalat’s appeal of the Milan
court’s dismissal. In June 2019, Parmalat filed a further appeal
with the Italian Supreme Court, and a hearing took place in
November 2024. Additional information concerning this
action is publicly available in court filings under the docket
numbers 1009/2018 and 20598/2019.
On January 29, 2020, Parmalat, its three directors, and its
sole shareholder, Sofil S.a.s., as co-plaintiffs, filed a claim
before the Italian civil court in Milan seeking a declaratory
judgment that they do not owe compensatory damages of
€990 million to Citibank. On November 5, 2020, Citibank
joined the proceedings, seeking dismissal of the declaratory
judgment application and raised a counterclaim, seeking
€990 million as damages. These proceedings are currently
stayed. Additional information concerning this action is
publicly available in court filings under the docket number
8611/2020.
Shareholder Derivative and Securities Litigation
Beginning in October 2020, four derivative actions were filed
in the United States District Court for the Southern District of
New York, purportedly on behalf of Citigroup (as nominal
defendant) against certain of Citigroup’s current and former
directors. The actions were later consolidated under the case
name IN RE CITIGROUP INC. SHAREHOLDER
DERIVATIVE LITIGATION. The consolidated complaint
asserts claims for breach of fiduciary duty, unjust enrichment,
and contribution and indemnification in connection with
defendants’ alleged failures to implement adequate internal
controls. In addition, the consolidated complaint asserts
derivative claims for violations of Sections 10(b) and 14(a) of
the Securities Exchange Act of 1934 in connection with
statements in Citigroup’s 2019 and 2020 annual meeting
proxy statements. In February 2021, the court stayed the
action pending resolution of defendants’ motion to dismiss in
IN RE CITIGROUP SECURITIES LITIGATION. In April
2023, after defendants’ motion to dismiss was granted in IN
RE CITIGROUP SECURITIES LITIGATION, the court
maintained the stay in this action pending resolution of the
securities plaintiffs’ motion for leave to amend the complaint
and, if leave is granted, any subsequent motion to dismiss.
Additional information concerning this action is publicly
available in court filings under the docket number 1:20-
CV-09438 (S.D.N.Y.) (Preska, J.).
Beginning in December 2020, two derivative actions were
filed in the Supreme Court of the State of New York,
purportedly on behalf of Citigroup (as nominal defendant)
against certain of Citigroup’s current and former directors, and
certain current and former officers. The actions were later
consolidated under the case name IN RE CITIGROUP INC.
DERIVATIVE LITIGATION, and the court stayed the action
pending resolution of defendants’ motion to dismiss in IN RE
CITIGROUP SECURITIES LITIGATION. In April 2023, a
third related derivative action also filed in the Supreme Court
of the State of New York was consolidated for all purposes
into this action. That same month, following the dismissal of
the securities complaint in IN RE CITIGROUP SECURITIES
LITIGATION, the court maintained the stay in this action
pending resolution of the securities plaintiffs’ motion for leave
to amend the complaint and, if leave is granted, any
subsequent motion to dismiss. Additional information
concerning this action is publicly available in court filings
under the docket number 656759/2020 (N.Y. Sup. Ct.)
(Schecter, J.).
On August 2, 2022, a shareholder derivative action
captioned LIPSHUTZ ET AL. v. COSTELLO ET AL. was
filed in the United States District Court for the Eastern District
of New York, purportedly on behalf of Citigroup (as nominal
defendant) against Citigroup’s current directors. The action
raises substantially the same claims and allegations as IN RE
CITIGROUP INC. SHAREHOLDER DERIVATIVE
LITIGATION. The LIPSHUTZ action additionally asserts that
plaintiffs made a litigation demand on the Citigroup Board of
Directors and that the demand was wrongfully refused. In May
2023, on defendants’ motion, the action was transferred to the
United States District Court for the Southern District of New
York so that it could be litigated along with IN RE
CITIGROUP INC. SHAREHOLDER DERIVATIVE
306
LITIGATION and IN RE CITIGROUP SECURITIES
LITIGATION. Additional information concerning this action
is publicly available in court filings under the docket number
1:23-CV-04058 (S.D.N.Y.) (Preska, J.).
Beginning in October 2020, three putative class action
complaints were filed in the United States District Court for
the Southern District of New York against Citigroup and
certain of its current and former officers, asserting violations
of Sections 10(b) and 20(a) of the Securities Exchange Act of
1934 in connection with defendants’ alleged misstatements
concerning Citigroup’s internal controls. The actions were
consolidated under the case name IN RE CITIGROUP
SECURITIES LITIGATION. The consolidated complaint
later added certain of Citigroup’s current and former directors
as defendants. On March 24, 2023, the court granted
defendants’ motion to dismiss without prejudice. On May 24,
2023, plaintiffs moved for leave to file a second amended
complaint against Citigroup and certain of Citigroup’s current
or former officers for alleged violations of Sections 10(b) and
20(a) of the Securities Exchange Act of 1934 based on alleged
misstatements concerning risk management and internal
controls. Additional information concerning this action is
publicly available in court filings under the docket number
1:20-CV-09132 (S.D.N.Y.) (Preska, J.).
Sovereign Securities Matters
Regulatory Action: On May 24, 2023, the UK Competition
and Markets Authority (CMA) announced that it had
provisionally found that Citigroup, CGML, and four other
banks unlawfully shared information related to the buying and
selling of British pound sterling-denominated government
bonds issued by the United Kingdom. The CMA noted that
Citigroup and CGML applied for leniency and had reached an
agreement to settle with the CMA. On February 21, 2025, the
CMA announced resolutions with Citigroup and CGML
related to conduct that occurred between 2011 and 2013 and
imposed a fine of £17.16 million.
Antitrust and Other Litigation: In 2018, a putative class
action was filed against Citigroup, CGMI, Citigroup Financial
Products Inc., Citigroup Global Markets Holdings Inc.,
Banamex, Grupo Banamex, and other banks, captioned IN RE
MEXICAN GOVERNMENT BONDS ANTITRUST
LITIGATION, in the United States District Court for the
Southern District of New York. The complaint alleges that
defendants colluded in the Mexican sovereign bond market. In
September 2019, the court granted defendants’ motion to
dismiss. In December 2019, plaintiffs filed an amended
complaint against Banamex and other market makers in the
Mexican sovereign bond market. Plaintiffs no longer assert
any claims against Citigroup or any other U.S. Citi affiliates.
The amended complaint alleges a conspiracy to fix prices in
the Mexican sovereign bond market, asserts antitrust and
unjust enrichment claims, and seeks treble damages,
restitution, and injunctive relief. In November 2020, the court
granted defendants’ motion to dismiss, and the plaintiffs
appealed. On February 9, 2024, the United States Court of
Appeals for the Second Circuit vacated the dismissal. On June
12, 2024, plaintiffs filed a third amended complaint. On July
29, 2024, certain defendants, including Banamex, filed a
motion to dismiss the third amended complaint. On January
15, 2025, the court denied the motion to dismiss. Additional
information concerning this action is publicly available in
court filings under the docket numbers 18-CV-2830
(S.D.N.Y.) (Oetken, J.) and 22-2039 (2d Cir.).
In February 2021, purchasers of Euro-denominated
sovereign debt issued by European central governments added
CGMI, CGML, and others as defendants to a putative class
action, captioned IN RE EUROPEAN GOVERNMENT
BONDS ANTITRUST LITIGATION, in the United States
District Court for the Southern District of New York. Plaintiffs
allege that defendants engaged in a conspiracy to inflate prices
of European government bonds in primary market auctions
and to fix the prices of European government bonds in
secondary markets. Plaintiffs assert a claim under the Sherman
Act and seek treble damages and attorneys’ fees. In March
2022, the court granted defendants’ motion to dismiss the
fourth amended complaint as to certain defendants but denied
defendants’ motion to dismiss as to other defendants,
including CGMI and CGML. In October 2023, plaintiffs filed
a fifth amended complaint. On December 9, 2024, the court
granted final approval of plaintiffs’ settlement of the action
with certain defendants, including CGMI and CGML.
Additional information concerning this action is publicly
available in court filings under the docket number 19-
CV-2601 (S.D.N.Y.) (Marrero, J.).
Variable Rate Demand Obligation Litigation
In 2019, plaintiffs in the consolidated actions CITY OF
PHILADELPHIA v. BANK OF AMERICA CORP, ET AL.
and MAYOR AND CITY COUNCIL OF BALTIMORE v.
BANK OF AMERICA CORP., ET AL. filed a consolidated
complaint naming as defendants Citigroup, Citibank, CGMI,
CGML, and numerous other industry participants. The
consolidated complaint asserts violations of the Sherman Act,
as well as claims for breach of contract, breach of fiduciary
duty, and unjust enrichment, and seeks damages and injunctive
relief based on allegations that defendants served as
remarketing agents for municipal bonds called variable rate
demand obligations (VRDOs) and colluded to set artificially
high VRDO interest rates. On November 6, 2020, the court
granted in part and denied in part defendants’ motion to
dismiss the consolidated complaint.
On June 2, 2021, the Board of Directors of the San Diego
Association of Governments, acting as the San Diego County
Regional Transportation Commission, filed a parallel putative
class action against the same defendants named in the already
pending nationwide consolidated class action. The two actions
were consolidated and on August 6, 2021, plaintiffs in the
nationwide putative class action filed a consolidated amended
complaint, captioned THE CITY OF PHILADELPHIA,
MAYOR AND CITY COUNCIL OF BALTIMORE, THE
BOARD OF DIRECTORS OF THE SAN DIEGO
ASSOCIATION OF GOVERNMENTS, ACTING AS THE
SAN DIEGO COUNTY REGIONAL TRANSPORTATION
COMMISSION v. BANK OF AMERICA CORP., ET AL.
In September 2021, defendants moved to dismiss the
consolidated amended complaint in part. In June 2022, the
court granted in part and denied in part defendants’ partial
motion to dismiss the consolidated amended complaint. In
October 2022, plaintiffs filed a motion to certify a class of
307
persons and entities who, from February 2008 to November
2015, paid interest rates on VRDOs with respect to the
antitrust claim. Plaintiffs also moved to certify a subclass of
individuals who entered into remarketing agreements with the
defendants during that same period. On September 21, 2023,
the court granted plaintiffs’ motion for class certification,
certifying both an antitrust class and a breach-of-contract
subclass. On October 5, 2023, defendants filed a Rule 23(f)
petition seeking leave to appeal the certification ruling. On
November 8, 2023, the plaintiffs voluntarily dismissed certain
defendants from the case, including Citigroup, Citibank, and
CGML. On February 5, 2024, the United States Court of
Appeals for the Second Circuit granted defendants’ Rule 23(f)
petition to appeal the district court’s order granting class
certification. Additional information concerning this action is
publicly available in court filings under the docket number 19-
CV-1608 (S.D.N.Y.) (Furman, J.) and 23-7328 (2d Cir.).
Since April 2018, Citigroup and certain of its affiliates,
including Citibank and CGMI, have been named in state court
qui tam lawsuits in which Edelweiss Fund, LLC alleges that
Citi and other financial institutions defrauded certain state and
municipal VRDO issuers in connection with resetting VRDO
interest rates. Filed under each state’s respective false claims
act, these actions are pending in state courts in California,
Illinois, New Jersey, and New York, and are captioned
STATE OF CALIFORNIA EX REL. EDELWEISS FUND,
LLC v. JP MORGAN CHASE & CO., ET AL., STATE OF
ILLINOIS EX REL. EDELWEISS FUND, LLC v. JP
MORGAN CHASE & CO., ET AL., STATE OF NEW
JERSEY EX REL. EDELWEISS FUND, LLC v. JP
MORGAN CHASE & CO., ET AL., and STATE OF NEW
YORK EX REL. EDELWEISS FUND, LLC v. JP MORGAN
CHASE & CO., ET AL., respectively. In the Illinois state qui
tam, the parties entered into a settlement agreement effective
February 1, 2024. In the New Jersey state qui tam, on
December 27, 2024, the Appellate Division of the New Jersey
Superior Court remanded the case to the trial court for the
entry of summary judgment in favor of defendants. Additional
information concerning these actions is publicly available in
court filings under the docket numbers CGC-14-540777 (Cal.
Super. Ct.) (Schulman, J.), 2017 L 000289 (Ill. Cir. Ct.)
(Donnelly, J.), L-885-15 (N.J. Super. Ct.) (Hurd, J.), and
100559/2014 (N.Y. Sup. Ct.) (Borrok, J.).
Settlement Payments
Payments required in settlement agreements described above
have been made or are covered by existing litigation or other
accruals.
308
31. SUBSIDIARY GUARANTEES
Citigroup Inc. has fully and unconditionally guaranteed the
payments due on debt securities issued by Citigroup Global
Markets Holdings Inc. (CGMHI), a wholly owned subsidiary,
under the Senior Debt Indenture dated as of March 8, 2016,
between CGMHI, Citigroup Inc. and The Bank of New York
Mellon, as trustee. In addition, Citigroup Capital III and
Citigroup Capital XIII (collectively, the Capital Trusts), each
of which is a wholly owned finance subsidiary of Citigroup
Inc., have issued trust preferred securities. Citigroup Inc. has
guaranteed the payments due on the trust preferred securities
to the extent that the Capital Trusts have insufficient available
funds to make payments on the trust preferred securities. The
guarantee, together with Citigroup Inc.’s other obligations
with respect to the trust preferred securities, effectively
provides a full and unconditional guarantee of amounts due on
the trust preferred securities (see Note 19). No other subsidiary
of Citigroup Inc. guarantees the debt securities issued by
CGMHI or the trust preferred securities issued by the Capital
Trusts.
Summarized financial information for Citigroup Inc. and
CGMHI is presented in the tables below:
SUMMARIZED INCOME STATEMENT
2024
In millions of dollars
Citigroup parent
company
CGMHI
Total revenues, net of interest expense
$
2,890 $
11,461
Total operating expenses
274
11,025
Provision for credit losses
—
24
Equity in undistributed income of subsidiaries
9,300
—
Income (loss) from continuing operations before income taxes
$
11,916 $
412
Provision (benefit) for income taxes
(766)
540
Net income (loss)
$
12,682 $
(128)
SUMMARIZED BALANCE SHEET
December 31, 2024
December 31, 2023
In millions of dollars
Citigroup parent
company
CGMHI
Citigroup parent
company
CGMHI
Cash and deposits with banks
$
4,014 $
19,464 $
3,011 $
23,756
Securities borrowed and purchased under resale agreements
—
215,995
—
283,174
Trading account assets
203
294,396
461
273,379
Advances to subsidiaries
150,790
—
150,845
—
Investments in subsidiary bank holding company
179,253
—
172,125
—
Investments in non-bank subsidiaries
46,549
—
46,870
—
Other assets
14,642
158,080
14,202
167,609
Total assets
$
395,451 $
687,935 $
387,514 $
747,918
Securities loaned and sold under agreements to repurchase
$
— $
268,178 $
— $
309,862
Trading account liabilities
69
89,146
300
111,233
Short-term borrowings
—
29,410
—
20,481
Long-term debt
164,024
184,516
162,309
184,083
Advances from subsidiaries
19,974
—
16,724
—
Other liabilities
2,786
80,486
2,728
85,079
Stockholders’ equity
208,598
36,199
205,453
37,180
Total liabilities and equity
$
395,451 $
687,935 $
387,514 $
747,918
309
32. CONDENSED PARENT COMPANY FINANCIAL STATEMENTS
The following are the Condensed Statements of Income and Comprehensive Income for the years ended December 31, 2024, 2023 and
2022, Condensed Balance Sheet as of December 31, 2024 and 2023 and Condensed Statement of Cash Flows for the years ended
December 31, 2024, 2023 and 2022 for Citigroup Inc., the parent holding company.
Condensed Statements of Income and Comprehensive Income
Parent Company Only
Year ended December 31,
In millions of dollars
2024
2023
2022
Revenues
Dividends from subsidiaries
$
5,549 $
16,811 $
8,992
Interest revenue—intercompany
$
7,523 $
6,955 $
4,628
Interest expense
6,680
6,339
5,250
Interest expense—intercompany
1,518
1,460
715
Net interest income
$
(675) $
(844) $
(1,337)
Commissions and fees
$
— $
— $
—
Commissions and fees—intercompany
(57)
(31)
(1)
Principal transactions
691
(928)
5,147
Principal transactions—intercompany
(2,590)
(771)
(5,686)
Other revenue
147
(23)
210
Other revenue—intercompany
(175)
(135)
(220)
Total non-interest revenues
$
(1,984) $
(1,888) $
(550)
Total revenues, net of interest expense
$
2,890 $
14,079 $
7,105
Operating expenses
Compensation and benefits
$
14 $
9 $
9
Compensation and benefits—intercompany
23
18
12
Other operating
207
160
85
Other operating—intercompany
30
15
15
Total operating expenses
$
274 $
202 $
121
Equity in undistributed income of subsidiaries
$
9,300 $
(5,572) $
6,173
Income from continuing operations before income taxes
$
11,916 $
8,305 $
13,157
Provision (benefit) for income taxes
(766)
(923)
(1,688)
Net income
$
12,682 $
9,228 $
14,845
Comprehensive income
Add: Other comprehensive income (loss)
(3,052)
2,235
(8,297)
Total Citigroup comprehensive income
$
9,630 $
11,463 $
6,548
310
Condensed Balance Sheet
Parent Company Only
December 31,
In millions of dollars
2024
2023
Assets
Cash and due from banks
$
— $
—
Cash and due from banks—intercompany
14
11
Deposits with banks—intercompany
4,000
3,000
Trading account assets
(164)
113
Trading account assets—intercompany
367
348
Investments, net of allowance
1
1
Advances to subsidiaries
$
150,790 $
150,845
Investments in subsidiary bank holding company
179,253
172,125
Investments in non-bank subsidiaries
46,549
46,870
Other assets, net of allowance(1)
10,255
10,031
Other assets—intercompany
4,386
4,170
Total assets
$
395,451 $
387,514
Liabilities and equity
Trading account liabilities
$
(159) $
34
Trading account liabilities—intercompany
228
266
Long-term debt
164,024
162,309
Advances from subsidiary bank holding company
10,948
8,677
Advances from non-bank subsidiaries
9,026
8,047
Other liabilities
2,719
2,560
Other liabilities—intercompany
67
168
Stockholders’ equity
208,598
205,453
Total liabilities and equity
$
395,451 $
387,514
(1)
Citigroup parent company at December 31, 2024 and 2023 included $75.4 billion and $56.9 billion, respectively, of placements to Citibank and its branches, of
which $71.6 billion and $33.8 billion, respectively, had a remaining term of less than 30 days.
311
Condensed Statement of Cash Flows
Parent Company Only
Year ended December 31,
In millions of dollars
2024
2023
2022
Net cash provided by (used in) operating activities of continuing operations
$
2,536 $
17,163 $
156
Cash flows from investing activities of continuing operations
Changes in investments and advances—intercompany
$
(1,287) $
(3,450) $
(7,815)
Net cash provided by (used in) investing activities of continuing operations
$
(1,287) $
(3,450) $
(7,815)
Cash flows from financing activities of continuing operations
Dividends paid
$
(5,199) $
(5,212) $
(5,003)
Issuance of preferred stock
5,282
2,739
—
Redemption of preferred stock
(5,050)
(4,145)
—
Treasury stock acquired
(2,474)
(1,977)
(3,250)
Proceeds (repayments) from issuance of long-term debt, net
4,399
(6,955)
14,661
Net change in short-term borrowings and other advances—intercompany
3,250
2,162
1,093
Other financing activities
(454)
(329)
(344)
Net cash provided by (used in) financing activities of continuing operations
$
(246) $
(13,717) $
7,157
Change in cash and due from banks and deposits with banks
$
1,003 $
(4) $
(502)
Cash and due from banks and deposits with banks at beginning of year
3,011
3,015
3,517
Cash and due from banks and deposits with banks at end of year
$
4,014 $
3,011 $
3,015
Cash and due from banks (including segregated cash and other deposits)
$
14 $
11 $
15
Deposits with banks, net of allowance
4,000
3,000
3,000
Cash and due from banks and deposits with banks at end of year
$
4,014 $
3,011 $
3,015
Supplemental disclosure of cash flow information for continuing operations
Cash paid (received) during the year for income taxes
$
(93) $
(2,000) $
(1,269)
Cash paid during the year for interest
5,934
5,704
1,309
312
FINANCIAL DATA SUPPLEMENT
RATIOS
2024
2023
2022
Return on average assets
0.51 %
0.38 %
0.62 %
Return on average common stockholders’ equity(1)
6.1
4.3
7.7
Return on average total stockholders’ equity(2)
6.1
4.5
7.5
Total average equity to average assets(3)
8.4
8.5
8.3
Dividend payout ratio(4)
37
51
29
(1)
Based on Citigroup’s net income less preferred stock dividends as a percentage of average common stockholders’ equity.
(2)
Based on Citigroup’s net income as a percentage of average total Citigroup stockholders’ equity.
(3)
Based on average Citigroup stockholders’ equity as a percentage of average assets.
(4)
Dividends declared per common share as a percentage of diluted EPS.
AVERAGE DEPOSIT LIABILITIES(1)
2024
2023
2022
In millions of dollars at year end, except ratios
Average
balance
Average
interest rate
Average
balance
Average
interest rate
Average
balance
Average
interest rate
In U.S. offices
Demand deposits
$
304,198
4.53 % $
294,081
4.30 % $
271,123
1.38 %
Time deposits
100,314
4.83
103,170
4.28
45,673
2.19
Savings deposits
165,536
2.47
197,337
1.79
255,598
0.48
Total interest-bearing deposits—U.S.
$
570,048
3.99 % $
594,588
3.46 % $
572,394
1.05 %
In offices outside the U.S.
Demand deposits
$
330,118
2.95 % $
317,321
2.58 % $
345,941
0.75 %
Time and savings deposits
216,465
3.63
219,428
3.42
170,388
1.76
Total interest-bearing deposits—outside the U.S.
$
546,583
3.22 % $
536,749
2.92 % $
516,329
1.08 %
Total interest-bearing deposits
$ 1,116,631
3.61 % $
1,131,337
3.21 % $
1,088,723
1.06 %
Non-interest-bearing deposits
$
200,319
— % $
202,736
— % $
244,741
— %
Total deposits
$ 1,316,950
3.06 % $
1,334,073
2.72 % $
1,333,464
0.87 %
(1)
Interest rates and amounts include the effects of risk management activities and also reflect the impact of the local interest rates prevailing in certain countries.
UNINSURED DEPOSITS
The table below presents the estimated amount of uninsured time deposits by maturity profile:
In millions of dollars at December 31, 2024
Three
months or
less
Over 3
months but
within 6
months
Over 6
months but
within 12
months
Over 12
months
Total
In U.S. offices(1)
Time deposits in excess of FDIC insurance limits(2)
$
20,056 $
6,172 $
7,165 $
1,317 $
34,710
In offices outside the U.S.(1)
Time deposits in excess of foreign jurisdiction insurance limits(3)(4)
117,926
7,853
11,717
1,816
139,312
Total uninsured time deposits(5)
$
137,982 $
14,025 $
18,882 $
3,133 $
174,022
(1)
The classification between offices in the U.S. and outside the U.S. is based on the domicile of the booking unit, rather than the domicile of the depositor.
(2)
The standard insurance amount is $250,000 per depositor, per insured bank, for single ownership categories.
(3)
Time deposits in offices outside the U.S. are assumed to be a depositor’s account as single account ownership.
(4)
The insurance coverage is applied in sequence of checking, savings and short- and long-term time deposits accounts.
(5)
The maturity term is based on the remaining term of the time deposit rather than the original maturity date.
Total uninsured deposits as of December 31, 2024 were $1.00 trillion (see footnotes 1, 2 and 3 to the table above).
313
SUPERVISION, REGULATION AND OTHER
SUPERVISION AND REGULATION
Citi is subject to regulation under various U.S. federal and
state laws, as well as applicable laws in the other jurisdictions
in which it does business.
General
Citigroup is a registered bank holding company and financial
holding company and is regulated and supervised by the
Federal Reserve Board (FRB). Citigroup’s nationally
chartered subsidiary banks, including Citibank, are regulated
and supervised by the Office of the Comptroller of the
Currency (OCC). The Federal Deposit Insurance Corporation
(FDIC) also has examination authority for banking
subsidiaries whose deposits it insures. Overseas branches of
Citibank are regulated and supervised by the FRB and OCC
and overseas subsidiary banks by the FRB. These overseas
branches and subsidiary banks are also regulated and
supervised by regulatory authorities in the host countries. In
addition, the Consumer Financial Protection Bureau regulates
consumer financial products and services. Citi is also subject
to laws and regulations concerning the collection, use, sharing
and disposition of certain customer, employee and other
personal and confidential information, including those
imposed by the Gramm-Leach-Bliley Act, the Fair Credit
Reporting Act and the EU General Data Protection
Regulation. For more information on U.S. and foreign
regulation affecting or potentially affecting Citi, see “Capital
Resources,” “Managing Global Risk—Liquidity Risk” and
“Risk Factors” above.
Other Bank and Bank Holding Company Regulation
Citi, including its banking subsidiaries, is subject to regulatory
limitations, including requirements as to liquidity, risk-based
capital and leverage (see “Capital Resources” above and Note
20), restrictions on the types and amounts of loans that may be
made and the interest that may be charged, and limitations on
investments that can be made and services that can be offered.
The FRB may also expect Citi to commit resources to its
subsidiary banks in certain circumstances. Citi is also subject
to anti-money laundering and financial transparency laws,
including standards for verifying client identification at
account opening and obligations to monitor client transactions
and report suspicious activities.
Securities and Commodities Regulation
Citi conducts securities underwriting, brokerage and dealing
activities in the U.S. through Citigroup Global Markets Inc.
(CGMI), its primary broker-dealer, and other broker-dealer
subsidiaries, which are subject to regulations of the U.S.
Securities and Exchange Commission (SEC), the Financial
Industry Regulatory Authority and certain exchanges. Citi
conducts similar securities activities outside the U.S., subject
to local requirements, through various subsidiaries and
affiliates, principally Citigroup Global Markets Limited in
London (CGML), which is regulated principally by the U.K.
Financial Conduct Authority and Prudential Regulation
Authority (PRA), and Citigroup Global Markets Japan Inc. in
Tokyo, which is regulated principally by the Financial
Services Agency of Japan.
Citi also has subsidiaries that are members of futures
exchanges and derivatives clearinghouses. In the U.S., CGMI
is a member of the principal U.S. futures exchanges and
clearinghouses, and Citi has subsidiaries that are registered as
futures commission merchants and commodity pool operators
with the Commodity Futures Trading Commission (CFTC).
Citibank, CGMI, Citigroup Energy Inc., Citigroup Global
Markets Europe AG (CGME) and CGML are also registered
as swap dealers with the CFTC (see below). CGMI is also
subject to SEC and CFTC rules that specify uniform minimum
net capital requirements. Compliance with these rules could
limit those operations of CGMI that require the intensive use
of capital and also limits the ability of broker-dealers to
transfer large amounts of capital to parent companies and
other affiliates. See “Capital Resources” above and Note 20
for a further discussion of capital considerations of Citi’s non-
banking subsidiaries.
Transactions with Affiliates
Transactions between Citi’s U.S. subsidiary depository
institutions and their non-bank affiliates are regulated by the
FRB, and are generally required to be on arm’s-length terms.
See “Managing Global Risk—Liquidity Risk” above.
COMPETITION
The financial services industry is highly competitive. Citi’s
competitors include a variety of financial services and
advisory companies, as well as certain non-financial services
firms. Citi competes for clients and capital (including deposits
and funding in the short- and long-term debt markets) with
some of these competitors globally and with others on a
regional or product basis. Citi’s competitive position depends
on many factors, including, among others, the value of Citi’s
brand name and reputation, and the types of clients and
geographies served; the quality, range, performance,
innovation and pricing of products and services; the
effectiveness of and access to distribution channels,
maintenance of partner relationships, emerging technologies
and technology advances, customer service and convenience;
the effectiveness of transaction execution, interest rates,
lending limits and risk appetite; regulatory constraints and
compliance; and changes in the macroeconomic business
environment or societal norms. Citi’s ability to compete
effectively also depends upon its ability to attract new
employees and retain and motivate existing employees, while
managing compensation and other costs. For additional
information on competitive factors and uncertainties impacting
Citi’s businesses, see “Risk Factors—Strategic Risks” above.
314
DISCLOSURE PURSUANT TO SECTION 219 OF THE
IRAN THREAT REDUCTION AND SYRIA HUMAN
RIGHTS ACT
Pursuant to Section 219 of the Iran Threat Reduction and Syria
Human Rights Act of 2012 (Section 219), which added
Section 13(r) to the Securities Exchange Act of 1934, as
amended, Citi is required to disclose in its annual or quarterly
reports, as applicable, whether it or any of its affiliates
knowingly engaged in certain activities, transactions or
dealings relating to Iran or with certain individuals or entities
that are the subject of sanctions under U.S. law. Disclosure
may be required even where the activities, transactions or
dealings were conducted in compliance with applicable law.
To the extent that transactions or dealings for its clients are
permitted by U.S. law, Citi may continue to engage in such
activities. Citi, in its First Quarter of 2024 Form 10-Q,
identified one transaction pursuant to Section 219, and Citi, in
its Second Quarter of 2024 Form 10-Q, identified 27
transactions pursuant to Section 219. Citi did not identify any
reportable activities pursuant to Section 219 during the third
quarter of 2024.
During the fourth quarter of 2024, Citigroup identified
one transaction pursuant to Section 219. On November 19,
2024, Citibank, N.A. processed a transaction between the
Central Bank of Iran (the CBI) and an international
organization. The CBI sent funds in yen, through Citibank,
N.A., Tokyo Branch, which were then converted to U.S.
dollars and transferred to the international organization’s U.S.
dollar account at Citibank, N.A., New York Branch. The total
value of the payment was USD 18,245,109.21. The transaction
represented a payment for the Government of Iran’s
membership dues to the international organization and was
processed pursuant to general licenses issued by the U.S.
Department of the Treasury’s Office of Foreign Assets
Control. Citibank realized approximately USD 3,559.18 for
incoming and outgoing payments fees and a foreign exchange
transaction fee.
315
UNREGISTERED SALES OF EQUITY SECURITIES,
REPURCHASES OF EQUITY SECURITIES AND
DIVIDENDS
Unregistered Sales of Equity Securities
None.
Equity Security Repurchases
All large banks, including Citi, are subject to limitations on
capital distributions in the event of a breach of any regulatory
capital buffers, including the Stress Capital Buffer, with the
degree of such restrictions based on the extent to which the
buffers are breached. For additional information, see “Capital
Resources—Regulatory Capital Buffers” and “Risk Factors—
Strategic Risks,” “—Operational Risks” and “—Compliance
Risks” above.
The following table summarizes Citi’s common share repurchases for the fourth quarter of 2024:
In thousands, except per share amounts
Total shares
purchased
Average
price paid
per share
October 2024
Open market repurchases(1)
529 $
64.63
Employee transactions(2)
—
—
November 2024
Open market repurchases(1)
3,698
67.80
Employee transactions(2)
—
—
December 2024
Open market repurchases(1)
10,102
70.79
Employee transactions(2)
—
—
Total for 4Q24
14,329 $
69.79
(1)
Repurchases not made pursuant to any publicly announced plan or program.
(2)
During the fourth quarter, pursuant to Citigroup’s Board of Directors’ authorization, Citi withheld an insignificant number of shares of common stock, added to
treasury stock, related to activity on employee stock programs to satisfy the employee tax requirements.
On January 13, 2025, Citigroup’s Board of Directors
authorized a new, multiyear $20 billion common stock
repurchase program, beginning in the first quarter of 2025.
Repurchases by Citigroup under this common stock
repurchase program are subject to quarterly approval by
Citigroup’s Board of Directors; may be effected from time to
time through open market purchases, trading plans established
in accordance with U.S. Securities and Exchange Commission
rules, or other means; and, as determined by Citigroup, may be
subject to satisfactory market conditions, Citigroup’s capital
position and capital requirements, applicable legal
requirements and other factors.
As previously announced, during the first quarter of 2025,
Citi plans to repurchase $1.5 billion of common shares,
subject to market conditions and other factors. After the first
quarter of 2025, Citi will continue to assess common share
repurchases on a quarter-by-quarter basis.
Dividends
Citi paid common dividends of $0.56 per share for the fourth
quarter of 2024 and the first quarter of 2025. Citi intends to
maintain a quarterly common dividend of at least $0.56 per
share, subject to financial and macroeconomic conditions and
its Board of Directors’ approval.
Citi’s ability to pay common stock dividends is subject to
limitations on capital distributions in the event of a breach of
any regulatory capital buffers, including the Stress Capital
Buffer, with the degree of such restrictions based on the extent
to which the buffers are breached. For additional information,
see “Capital Resources—Regulatory Capital Buffers” and
“Risk Factors—Strategic Risks,” “—Operational Risks” and
“—Compliance Risks” above.
Any dividend on Citi’s outstanding common stock would
also need to be in compliance with Citi’s obligations on its
outstanding preferred stock.
During 2024, Citi distributed $1,054 million in dividends
on its outstanding preferred stock. On January 14, 2025, Citi
declared preferred dividends of approximately $269 million
for the first quarter of 2025.
See Note 20 for information on the ability of Citigroup’s
subsidiary depository institutions to pay dividends.
316
OTHER INFORMATION
Insider Trading Policies and Procedures and
Arrangements
Citi has insider trading policies and procedures governing the
purchase, sale and/or other dispositions of Citi securities by its
officers and employees, as well as by members of the
Citigroup Board of Directors and Citi itself, that are
reasonably designed to promote compliance with insider
trading laws, rules and regulations, and listing standards
applicable to Citi. A copy of Citi’s Trading and Material Non-
Public Information (MNPI) Standard for Citi Securities,
applicable to officers and employees, is filed as Exhibit 19.01
to this Form 10-K. Citi’s Policy on Transactions in Citigroup
Inc. Securities by Non-Management Members of Citigroup
Inc.’s Board of Directors and the Citigroup Inc. Share
Repurchase and Securities Issuance Procedures applicable to
Citi itself, are filed as Exhibits 19.02 and 19.03, respectively,
to this Form 10-K.
During the fourth quarter of 2024, no director or
executive officer of Citi adopted or terminated any Rule
10b5-1 or non-Rule 10b5-1 trading arrangement (each, as
defined in Item 408 of Regulation S-K).
317
PERFORMANCE GRAPH
Comparison of Five-Year Cumulative Total Return
The following graph and table compare the cumulative total
return on Citigroup’s common stock with the cumulative total
return of the S&P 500 Index and the S&P Financials Index
over the five-year period through December 31, 2024. The
graph and table assume that $100 was invested on December
31, 2019 in Citigroup’s common stock, the S&P 500 Index
and the S&P Financials Index, and that all dividends were
reinvested.
Comparison of Five-Year Cumulative Total Return
For the years ended
Citigroup
S&P 500 Index
S&P Financials Index
2019
2020
2021
2022
2023
2024
50
100
150
200
250
DATE
Citigroup
S&P 500
Index
S&P
Financials
Index
31-Dec-2019
100.0
100.0
100.0
31-Dec-2020
80.4
118.4
98.3
31-Dec-2021
81.2
152.4
132.8
31-Dec-2022
63.2
124.8
118.8
31-Dec-2023
75.2
157.6
133.2
31-Dec-2024
106.8
197.0
173.9
Note: Citigroup’s common stock is listed on the NYSE under
the ticker symbol “C” and held by 58,273 registered common
stockholders of record as of January 31, 2025.
318
CORPORATE INFORMATION
EXECUTIVE OFFICERS
Citigroup’s executive officers as of February 21, 2025 are:
Name
Age Position and office held
Jane Fraser
57
Chief Executive Officer, Citigroup Inc.
Sunil Garg
59
CEO, Citibank, N.A., and Head of
North America
Shahmir Khaliq
54
Head of Services
David Livingstone
61
Chief Client Officer
Gonzalo Luchetti
51
Head of U.S. Personal Banking
Mark A. L. Mason
55
Chief Financial Officer
Brent McIntosh
51
Chief Legal Officer and Corporate
Secretary
Andrew Morton
63
Head of Markets
Vis Raghavan
58
Head of Banking and Executive Vice
Chair
Tim Ryan
61
Head of Technology and Business
Enablement
Anand Selvakesari
57
Chief Operating Officer
Andy Sieg
57
Head of Wealth
Edward Skyler
51
Head of Enterprise Services & Public
Affairs
Ernesto Torres Cantú
60
Head of International
Zdenek Turek
60
Chief Risk Officer
Robert Walsh
54
Interim Chief Accounting Officer
Sara Wechter
44
Chief Human Resources Officer
The following executive officers have not held their current
executive officer positions with Citigroup for at least five
years:
•
Ms. Fraser joined Citi in 2004 and assumed her current
position in March 2021. Previously, she served as CEO of
Global Consumer Banking from October 2019 to
December 2020. Before that, she served as CEO of Citi
Latin America from June 2015 to October 2019. She held
a number of other roles across the organization, including
CEO of U.S. Consumer and Commercial Banking and
CitiMortgage, CEO of Citi’s Global Private Bank and
Global Head of Strategy and M&A.
•
Mr. Garg joined Citi in May 1988 and assumed his
current position in February 2021, and in January 2023
also assumed the position of Head of North America.
Previously, he was global CEO of the Commercial Bank
beginning in 2011. Prior to that, he led the U.S.
Commercial Banking business from 2008 until 2011. In
addition, he held various other roles at Citi in Operations
and Technology, Treasury and Trade Solutions, Corporate
and Investment Banking and Commercial Banking.
•
Mr. Khaliq joined Citi in 1991 and assumed his current
position in 2023. He served as the Global Head of TTS
from 2021 to 2023. Prior to that, he was Head of TTS
Operations and Technology.
•
Mr. Livingstone joined Citi in 2016 and assumed his
current position in September 2023. Previously, he served
as CEO of Citi’s EMEA region from February 2019, and
as Country Officer for Australia and New Zealand from
June 2016. Prior to joining Citi, he spent nine years at
Credit Suisse, where he was Vice Chairman of the
Investment Banking and Capital Markets Division for the
EMEA region, Head of M&A and CEO of Credit Suisse
Australia, and over 16 years at the Goldman Sachs Group,
Inc. in a variety of senior roles in the investment banking
division.
•
Mr. Luchetti joined Citi in 2006 and assumed his current
position in February 2021. Prior to his current role, he
served as Head of the Consumer Bank in Asia and
EMEA. He also served as the Head of the Asia Retail
Bank and Global Head of Wealth Management and
Insurance. Prior to joining Citi, he worked for JPMorgan
Chase and Bain & Company.
•
Mr. McIntosh joined Citi in his current position in
October 2021. Previously, he served as Under Secretary
for International Affairs at the U.S. Treasury from 2019 to
2021. From 2017 to 2019, he served as the U.S.
Treasury’s General Counsel. Prior to that, he was a
partner in the law firm of Sullivan & Cromwell and
served in the U.S. White House from 2006 until 2009.
•
Mr. Morton joined Citi in 2008 and assumed his current
position in March 2022. Prior to his current role, he was
appointed Co-Head of Markets in November 2019, and
prior to that, he was Head of the G10 Rates and Financing
businesses. Prior to joining Citi, he spent 15 years at
Lehman Brothers, holding several positions including
European Head of Fixed Income and Global Head of
Fixed Income.
•
Mr. Raghavan joined Citi in his current position in 2024.
Prior to joining Citi, he was Head of Global Investment
Banking at JPMorgan, after previously having served as
Co-Head of Global Investment and Corporate Banking
since 2020. In addition to his global Banking
responsibilities, he was also Chief Executive Officer of
JPMorgan in Europe, the Middle East and Africa since
2017. He first joined J.P. Morgan in 2000 and has held
senior roles in Debt and Equity Capital Markets globally.
•
Mr. Ryan joined Citi in his current position in 2024. He
has over 30 years of diversified experience in the financial
services industry, both in the U.S. and internationally.
Previously, he was a Senior Partner at
PricewaterhouseCoopers, overseeing the firm’s strategy
and execution. He also served as Vice Chairman, where
his responsibilities included strategy, investor relations,
regulatory affairs, public policy, corporate responsibility,
marketing and sales, and human capital.
•
Mr. Selvakesari joined Citi in 1991 and assumed his
current position in March 2023. Previously, he served as
CEO of Citi’s Personal Banking and Wealth Management
franchise. He also served as Head of the U.S. Consumer
Bank from 2019 to 2020, and Head of Consumer Banking
for Asia Pacific from 2015 to 2018, as well as in a number
of regional and country roles, including Head of
Consumer Banking for ASEAN and India, leading the
consumer banking businesses in Singapore, Malaysia,
319
Indonesia, the Philippines, Thailand and Vietnam, as well
as India.
•
Mr. Sieg joined Citi in his current position in September
2023. Previously, he served as the president of Merrill
Wealth Management and held various senior strategy,
product and field leadership roles in the wealth
management business. He served as a senior wealth
management executive at Citi from 2005 to 2009, and
earlier in his career in the White House as an aide to the
Assistant to the President for Economic and Domestic
Policy.
•
Mr. Torres Cantú joined Citi in 1989 and assumed his
current position in September 2023. Previously, he served
as CEO of Latin America. From 2014 to 2019, he served
as CEO of Citibanamex, and from 2012 to 2014 as CEO
of Citibanamex Consumer Banking.
•
Mr. Turek joined Citi in 1991 and assumed his current
position in February 2021. Prior to being named Interim
Chief Risk Officer for Citi in December 2020, he served
as EMEA Chief Risk Officer. He held various other roles
at Citi, including CEO of Citibank Europe, as well as
leading significant franchises across Citi, including in
Russia, South Africa and Hungary.
•
Mr. Walsh joined Citi in 1999 and assumed his current
position in September 2024. Prior to his current role, he
served as Head of SEC and Financial Reporting from
2015 to 2024. Additional roles held by Mr. Walsh include
the Controller for Services as well as the North American
Controller for the Institutional Clients Group. Prior to
joining Citi, he spent seven years at Arthur Andersen. He
is a Certified Public Accountant, licensed in New York
State.
Code of Conduct, Code of Ethics
Citi has a Code of Conduct that maintains its commitment to
the highest standards of conduct. The Code of Conduct is
supplemented by a Code of Ethics for Financial Professionals
(including accounting, controllers, financial reporting
operations, financial planning and analysis, treasury, capital
planning, tax, productivity and strategy, M&A, investor
relations and regional/product finance professionals and
administrative staff) that applies worldwide. The Code of
Ethics for Financial Professionals applies to Citi’s principal
executive officer, principal financial officer and principal
accounting officer. Amendments and waivers, if any, to the
Code of Ethics for Financial Professionals will be disclosed on
Citi’s website, www.citigroup.com. The Audit Committee has
responsibility for the oversight of Citi’s Code of Ethics for
Financial Professionals.
Both the Code of Conduct and the Code of Ethics for
Financial Professionals can be found on the Citi website by
clicking on “Investors” and then “Corporate Governance.”
Citi’s Corporate Governance Guidelines can also be found
there, as well as the charters for the Audit Committee, the
Compensation, Performance Management and Culture
Committee, the Nomination, Governance and Public Affairs
Committee, the Risk Management Committee and the
Technology Committee of Citigroup’s Board of Directors.
These materials are also available by writing to Citigroup Inc.,
Corporate Governance, 388 Greenwich Street, 17th Floor,
New York, New York 10013.
320
CITIGROUP BOARD OF DIRECTORS
Titilope Cole
Former Head of Legacy Franchises,
Citigroup Inc.
Ellen M. Costello
Former President and CEO
BMO Financial Corporation and
Former U.S. Country Head
BMO Financial Group
Grace E. Dailey
Former Senior Deputy Comptroller
for Bank Supervision Policy and
Chief National Bank Examiner
Office of the Comptroller of the
Currency (OCC)
Barbara J. Desoer
Chair
Citibank, N.A.
John C. Dugan
Chair
Citigroup Inc.
Jane Fraser
Chief Executive Officer
Citigroup Inc.
Duncan P. Hennes
Co-Founder and Partner
Atrevida Partners, LLC
Peter Blair Henry
Class of 1984 Senior Fellow, Hoover
Institution, and Senior Fellow,
Freeman Spogli Institute for
International Studies, Stanford
University
S. Leslie Ireland
Former Assistant Secretary for
Intelligence and Analysis
U.S. Department of the Treasury and
National Intelligence Manager for
Threat Finance, Office of the
Director of National Intelligence
Renée J. James
Founder, Chair and CEO
Ampere Computing
Gary M. Reiner
Operating Partner
General Atlantic LLC
Diana L. Taylor
Former Superintendent of Banks
State of New York
James S. Turley
Former Chairman and CEO
Ernst & Young
Casper W. von Koskull
Former President and Group Chief
Executive Officer
Nordea Bank Abp
321
GLOSSARY OF TERMS AND ACRONYMS
The following is a list of terms and acronyms that are used in this report and certain other Citigroup presentations.
* Denotes a Citi metric
2024 Annual Report on Form 10-K: Annual Report on Form
10-K for the year ended December 31, 2024, filed with the
SEC.
90+ days past due delinquency rate*: Represents consumer
loans that are past due by 90 or more days, divided by that
period’s total EOP loans.
ABS: Asset-backed securities
ACL: Allowance for credit losses, which is composed of the
allowance for credit losses on loans (ACLL), allowance for
credit losses on unfunded lending commitments (ACLUC),
allowance for credit losses on HTM securities and allowance
for credit losses on other assets.
ACLL: Allowance for credit losses on loans
ACLUC: Allowance for credit losses on unfunded lending
commitments
Advanced Approaches: The Advanced Approaches capital
framework, established through Basel III rules by the FRB,
requires certain banking organizations to use an internal
ratings-based approach and other methodologies to calculate
risk-based capital requirements for credit risk and advanced
measurement approaches to calculate risk-based capital
requirements for operational risk.
AFS: Available-for-sale
ALCO: Asset and Liability Committee
Amortized cost: Amount at which a financing receivable or
investment is originated or acquired, adjusted for accretion or
amortization of premium, discount, and net deferred fees or
costs, collection of cash, charge-offs, foreign exchange and
fair value hedge accounting adjustments. For AFS securities,
amortized cost is also reduced by any impairment losses
recognized in earnings. Amortized cost is not reduced by the
allowance for credit losses, except where explicitly presented
net.
AOCI: Accumulated other comprehensive income (loss)
ASC: Accounting Standards Codification under GAAP issued
by the FASB.
Asia Consumer: Asia Consumer Banking
ASU: Accounting Standards Update under GAAP issued by
the FASB.
AUA: Assets under administration
AUC: Assets under custody
Available liquidity resources*: Resources available at the
balance sheet date to support Citi’s client and business needs,
including HQLA assets; additional unencumbered securities,
including excess liquidity held at bank entities that is non-
transferable to other entities within Citigroup; and available
assets not already accounted for within Citi’s HQLA to
support Federal Home Loan Bank (FHLB) and Federal
Reserve Bank discount window borrowing capacity.
Basel III: Liquidity and capital rules adopted by the FRB
based on an internationally agreed set of measures developed
by the Basel Committee on Banking Supervision.
Beneficial interests issued by consolidated VIEs: Represents
the interest of third-party holders of debt, equity securities or
other obligations, issued by VIEs that Citi consolidates.
Benefit obligation: Refers to the projected benefit obligation
for pension plans and the accumulated postretirement benefit
obligation for OPEB plans.
BHC: Bank holding company
Board: Citigroup’s Board of Directors
Book value per share*: EOP common equity divided by EOP
common shares outstanding.
Bps: Basis points. One basis point equals 1/100th of one
percent.
Branded Cards: Citi’s branded cards business with a
portfolio of proprietary cards (Value, Rewards and Cash) and
co-branded cards (including Costco and American Airlines).
Build: A net increase in ACL through the provision for credit
losses.
Card spend volume*: Dollar amount of card customers’
gross purchases. Also known as purchase sales.
Cards: Citi’s credit cards’ businesses or activities.
CCAR: Comprehensive Capital Analysis and Review
CCO: Chief Compliance Officer
CDS: Credit default swaps
CECL: Current expected credit losses
CEO: Chief Executive Officer
CET1 Capital: Common Equity Tier 1 Capital. See “Capital
Resources—Components of Citigroup Capital” above within
MD&A for the components of CET1.
CET1 Capital ratio*: Common Equity Tier 1 Capital ratio. A
primary regulatory capital ratio representing end-of-period
CET1 Capital divided by total risk-weighted assets.
CFO: Chief Financial Officer
CGMHI: Citigroup Global Markets Holdings Inc.
CGMI: Citigroup Global Markets Inc.
CGML: Citigroup Global Markets Limited
Citi: Citigroup Inc.
Citibank or CBNA: Citibank, N.A. (National Association)
322
Classifiably managed: Loans primarily evaluated for credit
risk based on internal risk rating classification.
Client investment assets: Represent assets under
management, trust and custody assets.
Cluster revenues: Cluster revenues are primarily based on
where the underlying transaction is managed.
CODM: Chief operating decision maker. For Citi, the Chief
Executive Officer.
Collateral dependent: A loan is considered collateral
dependent when repayment of the loan is expected to be
provided substantially through the operation or sale of the
collateral when the borrower is experiencing financial
difficulty, including when foreclosure is deemed probable
based on borrower delinquency.
Commercial card spend volume: Represents the total global
spend volumes using Citi-issued commercial cards net of
refunds and returns.
Commercial cards: Provides a wide range of payment
services to corporate and public sector clients worldwide
through commercial card products. Services include
procurement, corporate travel and entertainment, expense
management services and business-to-business payment
solutions.
Consent Orders: In October 2020, Citigroup and Citibank
entered into consent orders with the FRB and OCC that
require Citigroup and Citibank to make improvements in
various aspects of enterprise-wide risk management,
compliance, data quality management related to governance,
and internal controls. In July 2024, the FRB and OCC entered
into civil money penalty consent orders with Citigroup and
Citibank to address remediation effort shortcomings.
CRE: Commercial real estate
Credit cycle: A period of time over which credit quality
improves, deteriorates and then improves again (or vice versa).
The duration of a credit cycle can vary from a couple of years
to several years.
Credit derivatives: Financial instruments whose value is
derived from the credit risk associated with the debt of a third-
party issuer (the reference entity), which allow one party (the
protection purchaser) to transfer that risk to another party (the
protection seller).
Criticized: Criticized loans, lending-related commitments and
derivative receivables that are classified as special mention,
substandard and doubtful categories for regulatory purposes.
Cross-border transaction value: Represents the total value
of cross-border FX payments processed through Citi’s
proprietary Worldlink and Cross-Border Funds Transfer
platforms, including payments from consumer, corporate,
financial institution and public sector clients.
CTA: Cumulative translation adjustment (also known as
currency translation adjustment). A separate component of
equity within AOCI reported net of tax. For Citi, represents the
impact of translating non-USD balance sheet items into USD
each period. The CTA amount in EOP AOCI is a cumulative
balance, net of tax.
CVA: Credit valuation adjustment
DCM: Debt Capital Markets
Delinquency managed: Loans primarily evaluated for credit
risk based on delinquencies, FICO scores and the value of
underlying collateral.
Digital asset: Anything created and stored digitally that is
identifiable and discoverable, establishes ownership and has or
provides value (e.g., cryptocurrency).
Divestiture-related impacts: Citi’s results excluding
divestiture-related impacts represent as reported, or GAAP,
financial results adjusted for items that are incurred and
recognized, which are wholly and necessarily a consequence
of actions taken to sell (including through a public offering),
dispose of or wind down business activities associated with
Citi’s announced 14 exit markets.
Dividend payout ratio*: Represents dividends declared per
common share as a percentage of net income per diluted share.
DPD: Days past due
DTA: Deferred tax asset
DVA: Debt valuation adjustment
ECM: Equity Capital Markets
Efficiency ratio*: A ratio signifying how much of a dollar in
expenses (as a percentage) it takes to generate one dollar in
revenue. Represents total operating expenses divided by total
revenues, net.
EOP: End-of-period
EPS*: Earnings per share
EU: European Union
Fannie Mae: Federal National Mortgage Association
FASB: Financial Accounting Standards Board
FCA: Financial Conduct Authority
FDIC: Federal Deposit Insurance Corporation
Federal Reserve Board (FRB): The Board of the Governors
of the Federal Reserve System
FFIEC: Federal Financial Institutions Examination Council
FHA: Federal Housing Administration
FHLB: Federal Home Loan Bank
FICO: Fair Issac Corporation
FICO score: A measure of consumer credit risk provided by
credit bureaus, typically produced from statistical models by
Fair Isaac Corporation utilizing data collected by the credit
bureaus.
FINRA: Financial Industry Regulatory Authority
FRB: Federal Reserve Board
Freddie Mac: Federal Home Loan Mortgage Corporation
FVA: Funding valuation adjustment
323
FX: Foreign exchange
FX translation: The impact of converting non-U.S. dollar
currencies into U.S. dollars.
GAAP or U.S. GAAP: Generally accepted accounting
principles in the United States of America.
Ginnie Mae: Government National Mortgage Association
GSIB: Global Systemically Important Bank
HFI loans: Loans that are held-for-investment (i.e., excludes
loans held-for-sale).
HFS: Held-for-sale
HQLA: High-quality liquid assets. Consist of cash and certain
high-quality liquid securities as defined in the LCR rule.
HTM: Held-to-maturity
Hyperinflation: Extreme economic inflation with prices
rising at a very high rate in a very short time. Under U.S.
GAAP, entities operating in a hyperinflationary economy need
to change their functional currency to the U.S. dollar. Once the
change is made, the CTA balance is frozen.
IMF: International Monetary Fund
Interchange revenue: Fees earned from merchants based on
Citi’s credit and debit card customers’ sales transactions.
International region: Comprises six clusters: United
Kingdom; Japan, Asia North and Australia (JANA); LATAM;
Asia South; Europe; and Middle East and Africa (MEA).
IPO: Initial public offering
JANA: Japan, Asia North and Australia
KPMG: KPMG LLP, Citi’s Independent Registered Public
Accounting Firm
LATAM: Latin America
LCR: Liquidity Coverage ratio. Represents HQLA divided by
net outflows in the period.
LGD: Loss given default
LIBOR: London Interbank Offered Rate
LLC: Limited Liability Company
LTD: Long-term debt
LTV: Loan-to-value. For residential real estate loans, the
relationship, expressed as a percentage, between the principal
amount of a loan and the estimated value of the collateral (i.e.,
residential real estate) securing the loan.
Managed basis: Results reflected on a managed basis exclude
divestiture-related impacts.
Master netting agreement: A single agreement with a
counterparty that permits multiple transactions governed by
that agreement to be terminated or accelerated and settled
through a single payment in a single currency in the event of a
default (e.g., bankruptcy, failure to make a required payment
or securities transfer or deliver collateral or margin when due).
MBS: Mortgage-backed securities
MD&A: Management’s Discussion and Analysis, a section
within an SEC Form 10-Q or 10-K.
MEA: Middle East and Africa
Measurement alternative: Measures equity securities
without readily determinable fair values at cost less
impairment (if any), plus or minus observable price changes
from an identical or similar investment of the same issuer.
Mexico Consumer: Mexico Consumer Banking
Mexico Consumer/SBMM: Mexico Consumer Banking and
Small Business and Middle-Market Banking reported within
Legacy Franchises in All Other. Mexico Consumer/SBMM
operates primarily through Banamex and provides traditional
retail banking and branded card products to consumers and
small business customers and traditional middle-market
banking products and services to commercial customers, as
well as retirement fund administration and insurance products
through certain Banamex affiliate entities.
Mexico SBMM: Mexico Small Business and Middle-Market
Banking
Moody’s: Moody’s Ratings
MSRs: Mortgage servicing rights
N/A: Data is not applicable or available for the period
presented.
NAA: Non-accrual assets. Consists of non-accrual loans and
OREO.
NAL: Non-accrual loans. Loans for which interest income is
not recognized on an accrual basis. Loans (other than credit
card loans and certain consumer loans insured by U.S.
government-sponsored agencies) are placed on non-accrual
status when full payment of principal and interest is not
expected, regardless of delinquency status, or when principal
and interest have been in default for a period of 90 days or
more unless the loan is both well secured and in the process of
collection. Collateral-dependent loans are typically maintained
on non-accrual status.
NAV: Net asset value
NCL(s): Net credit losses. Represents gross credit losses, less
gross credit recoveries.
NCL ratio*: Represents net credit losses (recoveries)
(annualized), divided by average loans for the reporting
period.
Net capital rule: Rule 15c3-1 under the Securities Exchange
Act of 1934.
Net new investment asset flows: Represents investment asset
inflows, including dividends, interest and distributions, less
investment asset outflows. Excluded from the calculation are
the impacts of fees and commissions, market movement,
internal transfers within Citi specific to systematic upgrades/
downgrades with USPB and any impact from strategic
decisions by Citi to exit certain markets or services. Also
excluded from the calculation are net new investment assets
associated with markets for which data was not available for
current-period reporting.
324
NIM*: Net interest margin expressed as a yield percentage,
calculated as annualized net interest income divided by
average interest-earning assets for the period.
NM: Not meaningful
Noncontrolling interests: The portion of an investment that
has been consolidated by Citi that is not 100% owned by Citi.
Non-GAAP financial measure: A non-GAAP financial
measure is a numerical measure of the Company’s historical
or future financial performance, financial position or cash
flows that (i) excludes amounts, or is subject to adjustments
that have the effect of excluding amounts, that are included in
the most directly comparable measure calculated and
presented in accordance with GAAP in the statement of
income, balance sheet or statement of cash flows (or
equivalent statements) of the Company; or (ii) includes
amounts, or is subject to adjustments that have the effect of
including amounts, that are excluded from the most directly
comparable measure so calculated and presented.
Note: All “Note” references correspond to the Notes to the
Consolidated Financial Statements herein, unless otherwise
indicated.
NSFR: Net stable funding ratio
O/S: Outstanding
OCC: Office of the Comptroller of the Currency
OCI: Other comprehensive income (loss)
Operating leverage*: Represents the year-over-year growth
rate in basis points (bps) of Total revenues, net of interest
expense less the year-over-year growth rate of Total operating
expenses. A positive operating leverage percentage indicates
that the revenue growth rate was greater than the expense
growth rate.
OREO: Other real estate owned
OTTI: Other-than-temporary impairment
Over-the-counter cleared (OTC-cleared) derivatives:
Derivative contracts that are negotiated and executed
bilaterally, but subsequently settled via a central clearing
house, such that each derivative counterparty is only exposed
to the default of that clearing house.
Over-the-counter (OTC) derivatives: Derivative contracts
that are negotiated, executed and settled bilaterally between
two derivative counterparties, where one or both
counterparties is a derivatives dealer.
Parent company: Citigroup Inc.
Partner payments: Payments made to credit card partners
primarily based on program sales and profitability.
PD: Probability of default
Prime balances: Prime balances are defined as clients’
billable balances where Citi provides cash or synthetic prime
brokerage services. Management uses this information in
reviewing the business’s size and growth and believes it is
useful to investors concerning underlying business size and
growth trends.
Principal transactions revenue: Primarily trading-related
revenues predominantly generated by the Services, Markets
and Banking businesses. See Note 6.
Provision for credit losses: Composed of the provision for
credit losses on loans, provision for credit losses on HTM
investments, provision for credit losses on other assets and
provision for credit losses on unfunded lending commitments.
Provisions: Provisions for credit losses and for benefits and
claims.
Purchased credit-deteriorated: Purchased credit-deteriorated
assets are financial assets that as of the date of acquisition
have experienced a more-than-insignificant deterioration in
credit quality since origination, as determined by the
Company.
R&S forecast period: Reasonable and supportable period
over which Citi forecasts future macroeconomic conditions for
CECL purposes.
Real GDP: Real gross domestic product is the inflation-
adjusted value of the goods and services produced by labor
and property located in a country.
Reconciling Items: Divestiture-related impacts excluded from
the results of All Other, as well as All Other—Legacy
Franchises on a managed basis. The Reconciling Items are
fully reflected in Citi’s Consolidated Statement of Income for
each respective line item.
Regulatory VaR: Daily aggregated VaR calculated in
accordance with regulatory rules.
Release: A net decrease in ACL through the provision for
credit losses.
Reported basis: Financial statements prepared under U.S.
GAAP.
Results of operations that exclude certain impacts from
gains or losses on sale, or one-time charges*: Represents
GAAP items, excluding the impact of gains or losses on sales,
or one-time charges (e.g., the loss on sale related to the sale of
Citi’s consumer banking business in Australia).
Results of operations that exclude the impact of FX
translation*: Represents GAAP items, excluding the impact
of FX translation, whereby the prior periods’ foreign currency
balances are translated into U.S. dollars at the current period’s
conversion rates (also known as constant dollar). GAAP
measures excluding the impact of FX translation are non-
GAAP financial measures.
Retail Services: Citi’s U.S. retail services cards business with
a portfolio of co-brand and private label relationships
(including, among others, The Home Depot, Best Buy, Macy’s
and Sears).
RoTCE*: Return on tangible common equity. Represents net
income less preferred dividends (both annualized), divided by
average tangible common equity for the period.
RWA: Risk-weighted assets. Basel III establishes two
comprehensive approaches for calculating RWA (the
Standardized Approach and the Advanced Approaches), which
include capital requirements for credit risk, market risk and
325
operational risk for Advanced Approaches. Key differences in
the calculation of credit risk RWA between the Standardized
and Advanced Approaches are that for Advanced, credit risk
RWA is based on risk-sensitive approaches that largely rely on
the use of internal credit models and parameters, whereas for
Standardized, credit risk RWA is generally based on
supervisory risk-weightings, which vary primarily by
counterparty type and asset class. Market risk RWA is
calculated on a generally consistent basis between Basel III
Standardized Approach and Basel III Advanced Approaches.
S&P: Standard and Poor’s Global Ratings
SCB: Stress Capital Buffer
SEC: The U.S. Securities and Exchange Commission
SLR: Supplementary Leverage ratio. Represents Tier 1
Capital divided by Total Leverage Exposure.
SOFR: Secured Overnight Financing Rate
SPEs: Special purpose entities
Standardized Approach: Established through Basel III, the
Standardized Approach aligns regulatory capital requirements
more closely with the key elements of banking risk by
introducing a wider differentiation of risk weights and a wider
recognition of credit risk mitigation techniques, while
avoiding excessive complexity. Accordingly, the Standardized
Approach produces capital ratios more in line with the actual
economic risks that banks face.
Tangible book value per share (TBVPS)*: Represents
tangible common equity divided by EOP common shares
outstanding.
Tangible common equity (TCE): Represents common
stockholders’ equity less goodwill and identifiable intangible
assets, other than MSRs.
Taxable-equivalent basis: Represents the total revenue, net
of interest expense for the business, adjusted for revenue from
investments that receive tax credits and the impact of tax-
exempt securities. This metric presents results on a level
comparable to taxable investments and securities. GAAP
measures on a taxable equivalent basis, including the metrics
derived from these measures, are non-GAAP financial
measures.
TDR: Troubled debt restructuring. Prior to January 1, 2023, a
TDR was deemed to occur when the Company modified the
original terms of a loan agreement by granting a concession to
a borrower that was experiencing financial difficulty. Loans
with short-term and other insignificant modifications that are
not considered concessions were not TDRs. The accounting
guidance for TDRs was eliminated with the adoption of ASU
2022-02. See “Accounting Changes” in Note 1.
TEGU: taxable equivalent gross-up adjustments
TLAC: Total loss-absorbing capacity
Total ACL: Allowance for credit losses, which comprises the
allowance for credit losses on loans (ACLL), allowance for
credit losses on unfunded lending commitments (ACLUC),
allowance for credit losses on HTM securities and allowance
for credit losses on other assets.
Total payout ratio*: Represents total common dividends
declared plus common share repurchases as a percentage of
net income available to common shareholders.
Transactional and tax charges: Largely comprises costs that
are driven by revenues and transaction volumes, and is
primarily composed of brokerage exchange and clearance
costs, exchange fees, regulatory memberships and certain
indirect, non-income tax payments that are not recorded in
Provision for income taxes in the Consolidated Statement of
Income.
Transformation: Citi has embarked on a multiyear
transformation, with the target outcome to change Citi’s
business and operating models such that they simultaneously
strengthen risk and controls and improve Citi’s value to
customers, clients and shareholders.
Unaudited: Financial statements and information that have
not been subjected to auditing procedures sufficient to permit
an independent certified public accountant to express an
opinion.
U.S. dollar clearing volume: Represents the number of U.S.
dollar clearing payment instructions processed by Citi on
behalf of U.S. and foreign-domiciled entities (primarily
financial institutions).
U.S. Treasury: U.S. Department of the Treasury
VaR: Value at risk. A measure of the dollar amount of
potential loss from adverse market moves in an ordinary
market environment.
VIEs: Variable interest entities
Wallet: Proportion of fee revenue based on estimates of
investment banking fees generated across the industry (i.e., the
revenue wallet) from investment banking transactions in
M&A, equity and debt underwriting, and loan syndications.
326
EXHIBIT INDEX
Exhibit
Number
Description of Exhibit
3.1+
Restated Certificate of Incorporation of Citigroup Inc., as amended, as in effect on the date hereof.
3.02
By-Laws of Citigroup Inc., as amended, as in effect on the date hereof, incorporated by reference to Exhibit 3.02 to
Citigroup Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023 (File No.
001-09924).
4.01
Form of Senior Indenture between Citigroup Inc. and The Bank of New York Mellon, as trustee, incorporated by
reference to Exhibit 4.8 to Citigroup Inc.’s Registration Statement on Form S-3 filed November 13, 2013 (File No.
333-192302).
4.02
First Supplemental Indenture, dated as of February 1, 2016, between Citigroup Inc. and The Bank of New York
Mellon, as trustee, incorporated by reference to Exhibit 4.01 to Citigroup Inc.’s Current Report on Form 8-K filed
on February 1, 2016 (File No. 001-9924).
4.03
Second Supplemental Indenture, dated as of December 29, 2016, between Citigroup Inc. and The Bank of New
York Mellon, as trustee, incorporated by reference to Exhibit 4.01 to Citigroup Inc.’s Current Report on Form 8-K
filed on December 29, 2016 (File No. 001-9924).
4.04
Third Supplemental Indenture dated as of June 26, 2017 among Citigroup Global Markets Holdings Inc., Citigroup
Inc. and The Bank of New York Mellon, as trustee, to Indenture dated as of November 13, 2013, incorporated by
reference to Exhibit 4.01 to Citigroup Inc.’s Quarterly Report on Form 10-Q filed on August 1, 2017 (File No.
001-09924).
4.05
Fourth Supplemental Indenture dated as of June 27, 2019, between Citigroup Inc. and The Bank of New York
Mellon, as trustee, incorporated by reference to Exhibit 4.2 to Citigroup Inc.’s Current Report on Form 8-K filed
on June 28, 2019 (File No. 001-09924).
4.06
Fifth Supplemental Indenture dated as of December 18, 2023, between Citigroup Inc. and The Bank of New York
Mellon, as trustee, incorporated by reference to Exhibit 4.1 to Citigroup Inc.’s Current Report on Form 8-K filed
on December 19, 2023 (File No. 001-09924).
4.07
Subordinated Debt Indenture, dated as of April 12, 2001, between Citigroup Inc. and The Bank of New York
Mellon, as successor to JP Morgan Chase Bank (formerly Bank One Trust Company, N.A.), as trustee,
incorporated by reference to Exhibit 4.1 to Citigroup Inc.’s Registration Statement on Form S-3 filed February 4,
2013 (File No. 333-186425).
4.08
First Supplemental Indenture, dated as of August 2, 2004, between Citigroup Inc. and J.P. Morgan Trust Company,
N.A. (formerly Bank One Trust Company, N.A.), as trustee, incorporated by reference to Exhibit 4.13 to Citigroup
Inc.’s Registration Statement on Form S-3/A filed August 31, 2004 (File No. 333-117615).
4.09
Second Supplemental Indenture, dated as of May 18, 2016, between Citigroup Inc. and The Bank of New York
Mellon, as successor to J.P. Morgan Trust Company, N.A. (formerly Bank One Trust Company, N.A.), as trustee,
incorporated by reference to Exhibit 4.2 to Citigroup Inc.’s Current Report on Form 8-K filed on May 20, 2016
(File No. 001-9924).
4.10
Third Supplemental Indenture, dated as of March 1, 2017, between Citigroup Inc. and The Bank of New York
Mellon, as successor to J.P. Morgan Trust Company, N.A. (formerly Bank One Trust Company, N.A.), as trustee,
incorporated by reference to Exhibit 4.11 to Citigroup Inc.’s Registration Statement on Form S-3 filed March 1,
2017 (File No. 333-216372).
4.11
Fourth Supplemental Indenture, dated as of June 27, 2019, between Citigroup Inc. and The Bank of New York
Mellon, as trustee, incorporated by reference to Exhibit 4.1 to Citigroup Inc.’s Current Report on Form 8-K filed
on June 28, 2019 (File No. 001-09924).
327
4.12
Indenture, dated as of March 15, 1987, between Primerica Corporation, a New Jersey corporation, and The Bank of
New York, as trustee, incorporated by reference to Exhibit 4.01 to Citigroup Inc.’s Registration Statement on Form
S-3 filed December 8, 1992 (File No. 03355542).
4.13
First Supplemental Indenture, dated as of December 15, 1988, among Primerica Corporation, Primerica Holdings,
Inc. and The Bank of New York, as trustee, incorporated by reference to Exhibit 4.02 to Citigroup Inc.’s
Registration Statement on Form S-3 filed December 8, 1992 (File No. 03355542).
4.14
Second Supplemental Indenture, dated as of January 31, 1991, between Primerica Holdings, Inc. and The Bank of
New York, as trustee, incorporated by reference to Exhibit 4.03 to Citigroup Inc.’s Registration Statement on Form
S-3 filed December 8, 1992 (File No. 03355542).
4.15
Third Supplemental Indenture, dated as of December 9, 1992, among Primerica Holdings, Inc., Primerica
Corporation and The Bank of New York, as trustee, incorporated by reference to Exhibit 5 to Citigroup Inc.’s Form
8-A dated December 21, 1992, with respect to its 7 3/4% Notes due June 15, 1999 (File No. 001-09924).
4.16
Fourth Supplemental Indenture, dated as of November 2, 1998, between Citigroup Inc. and The Bank of New
York, as trustee, incorporated by reference to Exhibit 4.01 to Citigroup Inc.’s Quarterly Report on Form 10-Q for
the quarter ended September 30, 1998 (File No. 001-09924).
4.17
Fifth Supplemental Indenture, dated as of December 9, 2008, between Citigroup Inc. and The Bank of New York
Mellon, as trustee, incorporated by reference to Exhibit 4.04 to Citigroup Inc.’s Current Report on Form 8-K filed
December 11, 2008 (File No. 001-09924).
4.18
Sixth Supplemental Indenture, dated as of December 20, 2012, between Citigroup Inc. and The Bank of New York
Mellon, as trustee, providing for the issuance of debt securities, incorporated by reference to Exhibit 4.5 to
Citigroup Inc.’s Current Report on Form 8-K filed December 21, 2012 (File No. 001-09924).
4.19
Seventh Supplemental Indenture, dated as of May 18, 2016, between Citigroup Inc. and The Bank of New York
Mellon, as trustee, incorporated by reference to Exhibit 4.1 to Citigroup Inc.’s Current Report on Form 8-K filed
on May 20, 2016 (File No. 001-9924).
4.20
Senior Debt Indenture, dated as of June 1, 2005, among Citigroup Funding Inc., Citigroup Inc. and The Bank of
New York Mellon, as successor trustee to JPMorgan Chase Bank, N.A., incorporated by reference to Exhibit 4(b)
to Citigroup Inc.’s Registration Statement on Form S-3 filed March 13, 2006 (File No. 333-132370-01).
4.21
Second Supplemental Indenture, dated as of December 20, 2012, among Citigroup Funding Inc., Citigroup Inc. and
The Bank of New York Mellon, as successor trustee to JPMorgan Chase Bank, N.A., incorporated by reference to
Exhibit 4.2 to Citigroup Inc.’s Current Report on Form 8-K filed December 21, 2012 (File No. 001-09924).
4.22
Indenture, dated as of July 23, 2004, between Citigroup Inc. and The Bank of New York Mellon, as successor
trustee to JPMorgan Chase Bank, as trustee, incorporated by reference to Exhibit 4.28 to Citigroup Inc.’s
Registration Statement on Form S-3 filed July 23, 2004 (File No. 333-117615).
4.23
Form of Indenture, between Citigroup Inc. and The Bank of New York Mellon, as successor trustee to JPMorgan
Chase Bank (formerly known as The Chase Manhattan Bank), incorporated by reference to Exhibit 4.11 to the
Travelers Group Inc. Registration Statement on Form S-3 filed September 20, 1996 (File No. 333-12439).
4.24
Senior Debt Indenture, dated as of March 8, 2016, between Citigroup Global Markets Holdings Inc., Citigroup Inc.
and The Bank of New York Mellon, as trustee, incorporated by reference to Exhibit 4.1 to Citigroup Inc.’s Current
Report on Form 8-K filed March 9, 2016 (File No. 001-09924).
4.25
First Supplemental Indenture, dated as of March 1, 2017, between Citigroup Global Markets Holdings Inc.,
Citigroup Inc. and the Bank of New York Mellon, as trustee, incorporated by reference to Exhibit 4.24 to Citigroup
Inc.’s Registration Statement on Form S-3 filed March 1, 2017 (File No. 333-216372).
328
4.26
Second Supplemental Indenture, dated as of April 13, 2020, between Citigroup Global Markets Holdings Inc.,
Citigroup Inc. and the Bank of New York Mellon, as trustee, incorporated by reference to Exhibit 4.01 to Citigroup
Inc.’s Current Report on Form 8-K filed on April 13, 2020 (File No. 001-09924).
4.27
Third Supplemental Indenture, dated as of December 18, 2023, between Citigroup Global Markets Holdings Inc.,
Citigroup Inc. and the Bank of New York Mellon, as trustee, incorporated by reference to Exhibit 4.2 to Citigroup
Inc.’s Current Report on Form 8-K filed on December 19, 2023 (File No. 001-09924).
4.28
Form of Capital Securities Guarantee Agreement between Citigroup Inc. as Guarantor, and The Bank of New York
Mellon, as Guarantee Trustee, incorporated by reference to Exhibit 4.32 to Citigroup Inc.’s Registration Statement
on Form S-3 filed July 2, 2004 (File No. 333-117615).
4.29
Specimen Physical Common Stock Certificate of Citigroup Inc., incorporated by reference to Exhibit 4.1 to
Citigroup Inc.’s Current Report on Form 8-K filed May 9, 2011 (File No. 001-09924).
4.30
Amended and Restated Declaration of Trust for Citigroup Capital XIII (incorporated by reference to Exhibit 4.02
to Citigroup Inc.’s Current Report on Form 8-K filed on September 30, 2010 (File No. 109924)).
4.31
Form of Amended and Restated Declaration of Trust for Citigroup Capital III (previously known as Travelers
Capital III), incorporated by reference to Exhibit 4.8 to Travelers Group Inc.’s Registration Statement on Form S-3
(File No. 333-12439).
4.32+
Description of Citigroup Inc.’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of
1934.
10.01*
Citi Discretionary Incentive and Retention Award Plan (as Amended and Restated Effective as of January 1, 2024),
incorporated by reference to Exhibit 10.01 to Citigroup Inc.’s Quarterly Report on Form 10-Q for the quarterly
period ended March 31, 2024 (File No. 001-09924).
10.02.1*
Citigroup Inc. 2014 Stock Incentive Plan (as amended and restated effective April 24, 2018), incorporated by
reference to Exhibit 10.1 to Citigroup Inc.’s Current Report on Form 8-K filed April 30, 2018 (File No.
001-09924).
10.02.2*
Citigroup Inc. 2019 Stock Incentive Plan (as amended and restated effective April 30, 2024), incorporated by
reference to Exhibit 10.1 to Citigroup Inc.’s Current Report on Form 8-K filed May 2, 2024 (File No. 001-09924).
10.03*
Citigroup Inc. Deferred Cash Award Plan (as Amended and Restated Effective as of January 1, 2024), incorporated
by reference to Exhibit 10.02 to Citigroup Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended
March 31, 2024 (File No. 001-09924).
10.04*
Form of Citigroup Inc. CAP/DCAP Agreement (for awards granted on February 10, 2022 and in future years),
incorporated by reference to Exhibit 10.01 to Citigroup Inc.’s Quarterly Report on Form 10-Q for the quarterly
period ended June 30, 2022 (File No. 001-09924).
10.05*
Form of Citigroup Inc. CAP Agreement, incorporated by reference to Exhibit 10.01 to Citigroup Inc.’s Quarterly
Report on Form 10-Q for the quarterly period ended September 30, 2019 (File No. 001-09924).
10.06*
Citigroup Inc. DCAP Agreement, incorporated by reference to Exhibit 10.04 to Citigroup Inc.’s Quarterly Report
on Form 10-Q for the quarterly period ended March 31, 2020 (File No. 001-09924).
10.07*
Form of Citigroup Inc. CAP Agreement (for awards to be granted in February 2025 and future years), incorporated
by reference to Exhibit 10.1 to Citigroup Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2024 (File No. 001-09924).
329
10.08.1*
Form of Citigroup Inc. Performance Share Unit Award Agreement (awards dated February 11, 2021 and in future
years), incorporated by reference to Exhibit 10.01 to Citigroup Inc.’s Quarterly Report on Form 10-Q for the
quarterly period ended March 31, 2021 (File No. 001-09924).
10.08.2*
Form of Citigroup Inc. Performance Share Unit Award Agreement (awards to be granted in February 2025 and in
future years), incorporated by reference to Exhibit 10.2 to Citigroup Inc.’s Quarterly Report on Form 10-Q for the
quarterly period ended September 30, 2024 (File No. 001-09924).
10.09*
Employment Termination Notice and Non-Solicitation Policy for U.S. Employees, effective April 1, 2021,
incorporated by reference to Exhibit 10.03 to Citigroup Inc.’s Quarterly Report on Form 10-Q for the quarterly
period ended March 31, 2024 (File No. 001-09924).
10.10*
Citigroup Inc. Non-Employee Directors Compensation Plan (Effective as of January 1, 2008), incorporated by
reference to Exhibit 10.01 to Citigroup Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2007 (File No. 001-09924).
10.11*
Agreement between Bradford Hu and Citibank, N.A. (dated as of March 12, 2021), incorporated by reference to
Exhibit 10.03 to Citigroup Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021
(File No. 001-09924).
10.12*
Form of Transformation Program Agreement (for awards granted on November 1, 2022), incorporated by reference
to Exhibit 10.02 to Citigroup Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022
(File No. 001-09924).
10.13*
Agreement between Andrew Sieg and Citibank, N.A. (dated March 20, 2023), incorporated by reference to Exhibit
10.3 to Citigroup Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024 (File
No. 001-09924).
19.01+
Trading and Material Non-Public Information (MNPI) Standard for Citi Securities.
19.02+
Policy on Transactions in Citigroup Inc. Securities by Non-Management Members of Citigroup Inc.’s Board of
Directors.
19.03+
Citigroup Inc. Share Repurchase and Securities Issuance Procedures.
21.01+
Subsidiaries of Citigroup Inc.
22.01+
Subsidiary Issuers of Guaranteed Securities.
23.01+
Consent of KPMG LLP, Independent Registered Public Accounting Firm.
24.01+
Powers of Attorney.
31.01+
Certification of principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.02+
Certification of principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.01+
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
97.01+
Citigroup Inc. Dodd-Frank Clawback Provisions (effective as of October 2, 2023).
330
99.01+
List of Securities Registered Pursuant to Section 12(b) of the Securities Exchange Act of 1934, formatted in inline
XBRL.
101.01+
Financial statements from the Annual Report on Form 10-K of Citigroup Inc. for the fiscal year ended December
31, 2024, filed on February 21, 2025, formatted in inline XBRL: (i) the Consolidated Statement of Income, (ii) the
Consolidated Balance Sheet, (iii) the Consolidated Statement of Changes in Stockholders’ Equity, (iv) the
Consolidated Statement of Cash Flows and (v) the Notes to Consolidated Financial Statements.
104
The cover page of this Annual Report on Form 10-K, formatted in inline XBRL.
The total amount of securities authorized pursuant to any instrument defining rights of holders of long-term debt of Citigroup Inc. does
not exceed 10% of the total assets of Citigroup Inc. and its consolidated subsidiaries. Citigroup Inc. will furnish copies of any such
instrument to the SEC upon request.
Copies of any of the exhibits referred to above will be furnished at a cost of $0.25 per page (although no charge will be made for the
2024 Annual Report on Form 10-K) to security holders who make a written request to Citigroup Inc., Corporate Governance, 388
Greenwich Street, New York, NY 10013.
* Denotes a management contract or compensatory plan or arrangement.
+ Filed herewith.
331
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized, on the 21st day of
February, 2025.
Citigroup Inc.
(Registrant)
/s/ Mark A. L. Mason
Mark A. L. Mason
Chief Financial Officer
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities
indicated on the 21st day of February, 2025.
Citigroup’s Principal Executive Officer and a Director:
/s/ Jane Fraser
Jane Fraser
Citigroup’s Principal Financial Officer:
/s/ Mark A. L. Mason
Mark A. L. Mason
Citigroup’s Interim Principal Accounting Officer:
/s/ Robert Walsh
Robert Walsh
The Directors of Citigroup listed below executed a power of
attorney appointing Mark A. L. Mason their attorney-in-fact,
empowering him to sign this report on their behalf.
Titilope Cole
S. Leslie Ireland
Ellen M. Costello
Renée J. James
Grace E. Dailey
Gary M. Reiner
Barbara J. Desoer
Diana L. Taylor
John C. Dugan
James S. Turley
Duncan P. Hennes
Casper W. von Koskull
Peter Blair Henry
/s/ Mark A. L. Mason
Mark A. L. Mason
332
The cover and editorial section of this annual report are printed on McCoy, manufactured by Sappi North America with 10% recycled content and FSC® Chain of Custody Certified.
100% of the electricity used to manufacture McCoy is Green-e® certified renewable energy.
The financial section of this annual report is printed on FSC® certified Accent® Opaque 40lb white smooth text from Sylvamo.
Citi, Citi and Arc Design and other marks used herein are service marks of Citigroup Inc. or its affiliates, used and registered throughout the world.
Citigroup common stock is listed on the NYSE under the ticker symbol “C.”
Because Citigroup’s common stock is listed on the NYSE, the Chief Executive Officer is required to make an annual
certification to the NYSE stating that she was not aware of any violation by Citigroup of the corporate governance
listing standards of the NYSE. The annual certification to that effect was made to the NYSE on May 6, 2024.
As of January 31, 2025, Citigroup had approximately 58,273 common stockholders of record. This figure does not
represent the actual number of beneficial owners of common stock because shares are frequently held in “street
name” by securities dealers and others for the benefit of individual owners who may vote the shares.
Stockholder information
Transfer agent
Stockholder address changes and inquiries regarding
stock transfers, dividend replacement, 1099-DIV
reporting and lost securities for common and preferred
stock should be directed to:
Computershare
P.O. Box 43078
Providence, RI 02940-3078
Telephone No. 781 575 4555
Toll-free No. 888 250 3985
Email address: shareholder@computershare.com
Web address: www.computershare.com/investor
Exchange agent
Holders of Golden State Bancorp, Associates First
Capital Corporation or Citicorp common stock should
arrange to exchange their certificates by contacting:
Computershare
P.O. Box 43014
Providence, RI 02940-3014
Telephone No. 781 575 4555
Toll-free No. 888 250 3985
Email address: shareholder@computershare.com
Web address: www.computershare.com/investor
On May 9, 2011, Citi effected a 1-for-10 reverse stock
split. All Citi common stock certificates issued prior to
that date must be exchanged for new certificates by
contacting Computershare at the address noted above.
Citi’s 2024 Form 10-K filed with the SEC, as well as other
annual and quarterly reports, are available from Citi
Document Services toll free at 877 936 2737 (outside the
United States at 716 730 8055), by emailing a request to
docserve@citi.com or by writing to:
Citi Document Services
540 Crosspoint Parkway
Getzville, NY 14068
Stockholder inquiries
Information about Citi, including quarterly earnings
releases and filings with the U.S. Securities and
Exchange Commission, can be accessed via Citi’s
website at www.citigroup.com. Stockholder
inquiries can also be directed by email to
shareholderrelations@citi.com.
www.citigroup.com
© 2025 Citigroup Inc.
2324641
CIT24033
03/25