CITIGROUP INC - Quarter Report: 2023 March (Form 10-Q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023


☐			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

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

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 ☒ No ☐

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 ☒ No ☐

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 ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares of Citigroup Inc. common stock outstanding on March 31, 2023: 1,946,751,837

Available on the web at www.citigroup.com

CITIGROUP’S FIRST QUARTER 2023—FORM 10-Q


OVERVIEW			1
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			3
Executive Summary			3
Summary of Selected Financial Data			8
Segment Revenues and Income (Loss)			10
Segment Balance Sheet			11
Institutional Clients Group			12
Personal Banking and Wealth Management			16
Legacy Franchises			18
Corporate/Other			20
CAPITAL RESOURCES			21
MANAGING GLOBAL RISK TABLE OF CONTENTS			34
MANAGING GLOBAL RISK			35
SIGNIFICANT ACCOUNTING POLICIES AND SIGNIFICANT ESTIMATES			77
DISCLOSURE CONTROLS AND PROCEDURES			82
DISCLOSURE PURSUANT TO SECTION 219 OF THE IRAN THREAT REDUCTION AND SYRIA HUMAN RIGHTS ACT			82
FORWARD-LOOKING STATEMENTS			83
FINANCIAL STATEMENTS AND NOTES TABLE OF CONTENTS			87
CONSOLIDATED FINANCIAL STATEMENTS			88
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)			95
UNREGISTERED SALES OF EQUITY SECURITIES, REPURCHASES OF EQUITY SECURITIES AND DIVIDENDS			206
GLOSSARY OF TERMS AND ACRONYMS			208

OVERVIEW

This Quarterly Report on Form 10-Q should be read in conjunction with Citigroup’s Annual Report on Form 10-K for the year ended December 31, 2022 (referred to as the 2022 Form 10-K).

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 Quarterly Report on Form 10-Q and other Citigroup presentations, see “Glossary of Terms and Acronyms” at the end of this report.

Additional information about Citigroup is available on Citi’s website at www.citigroup.com. Citigroup’s recent 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.

Please see “Risk Factors” in Citi’s 2022 Form 10-K 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. Non-GAAP measures are provided as additional useful information to assess Citi’s financial condition and results of operations (including period-to-period operating performance). These non-GAAP measures are not intended as 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. For more information, including the reconciliation of these non-GAAP financial measures to their corresponding GAAP financial measures, see the respective sections where the measures are presented and described and the “Glossary of Terms and Acronyms” below.

Citigroup is managed pursuant to three operating segments: Institutional Clients Group, Personal Banking and Wealth Management and Legacy Franchises. Activities not assigned to the operating segments are included in Corporate/Other.

Citigroup Operating Segments

Institutional
Clients Group
(ICG)

Personal Banking
and Wealth Management
(PBWM)

Legacy
Franchises

•Services

–Treasury and trade solutions (TTS)

–Securities services

•Markets

–Equity markets

–Fixed income markets

•Banking

–Investment banking

–Corporate lending

•U.S. Personal Banking

–Cards

◦Branded cards

◦Retail services

–Retail banking

•Global Wealth Management

(Global Wealth)

–Private bank

–Wealth at Work

–Citigold

•Asia Consumer Banking

(Asia Consumer)

–Retail banking and cards for the remaining 6 exit markets (China, Indonesia, Korea, Poland, Russia and Taiwan)

•Mexico Consumer Banking (Mexico Consumer) and Mexico Small Business and Middle-Market Banking (Mexico SBMM)

–Retail banking and cards

•Legacy Holdings Assets

–Certain North America consumer mortgage loans

–Other legacy assets

Corporate/Other

•Corporate Treasury managed activities

•Operations and technology

•Global staff functions and other corporate expenses

•Discontinued operations

The following are the four regions in which Citigroup operates. The regional results are fully reflected in the operating segments and Corporate/Other above.

Citigroup Regions(1)

North
America

Europe,

Middle East

and Africa

(EMEA)

Latin
America

Asia

(1) North America includes the U.S., Canada and Puerto Rico, Latin America includes Mexico and Asia includes Japan.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

EXECUTIVE SUMMARY

First Quarter of 2023—Results Demonstrated Continued Progress Toward Achieving Priorities

As described further throughout this Executive Summary, during the first quarter of 2023:

•Citi’s revenues increased 12% versus the prior-year period, including a gain on sale of Citi’s India consumer banking business versus a loss related to the sale of Citi’s Australia consumer banking business in the prior-year period (for additional information, see “First Quarter of 2023 Results Summary” below). Excluding these divestiture-related impacts, revenues increased 6%, primarily driven by higher net interest income, partially offset by lower non-interest revenues.

•Citi’s expenses increased 1% versus the prior-year period, including divestiture-related impacts in both the current and prior-year periods (for additional information, see “First Quarter of 2023 Results Summary” below). Excluding these divestiture-related impacts, expenses increased 5%, primarily driven by continued investments in Citi’s transformation, other risk and control investments, inflation and severance costs, all partially offset by the benefit of productivity savings, foreign exchange translation and expense reduction from the closed exit markets and wind-downs (for additional information, see “Expenses” below).

•Citi’s cost of credit was $2.0 billion versus $0.8 billion in the prior-year period. The increase reflected a net build of $0.7 billion in the allowance for credit losses (ACL) for loans and unfunded commitments and other provisions, compared to a net ACL release of $0.1 billion in the prior-year period, primarily driven by macroeconomic deterioration and growth in card revolving balances, and higher net credit losses, primarily driven by ongoing normalization in Branded cards and Retail services.

•Citi returned $1.0 billion to common shareholders in the form of dividends.

•Citi’s Common Equity Tier 1 (CET1) Capital ratio increased to 13.4% as of March 31, 2023, compared to 11.4% as of March 31, 2022 (for additional information, see “Capital Resources” below). This compares to Citi’s required regulatory CET1 Capital ratio of 12.0% as of January 1, 2023 under the Basel III Standardized Approach.

•Citi continued to make further progress on its consumer banking business divestitures in the first quarter of 2023, including, among other things, completing the sales of its India and Vietnam consumer banking businesses and working toward closing two additional sale transactions in 2023, as well as progressing with the continued wind-downs of the Korea and China consumer banking businesses and the Russia consumer, local commercial and institutional businesses.

First Quarter of 2023 Results Summary

Citigroup

Citigroup reported net income of $4.6 billion, or $2.19 per share, compared to net income of $4.3 billion, or $2.02 per share in the prior-year period. The increase in net income was primarily driven by the higher revenues, partially offset by the higher expenses and the higher cost of credit. Citigroup’s effective tax rate was approximately 25% in the current quarter, including the impact of divestitures, versus 18% in the prior-year period, which had higher discrete tax benefits (for additional information, see “Income Taxes” below). Earnings per share (EPS) increased 8%, reflecting the higher net income and an approximate 1% decline in average diluted shares outstanding.

Results for the first quarter of 2023 included divestiture-related impacts of $953 million in earnings before taxes ($648 million after-tax), primarily recorded in Legacy Franchises, reflecting the following:

•$1,018 million of net divestiture gains, primarily related to a gain on sale of the India consumer banking business, recorded in revenues

•$73 million of aggregate divestiture-related costs, recorded in expenses

•An $8 million benefit of divestiture-related credit costs

•$305 million of related taxes

These divestiture-related impacts, collectively, had a $0.33 positive impact on EPS in the current quarter. Excluding these divestiture-related impacts, EPS was $1.86. (As used throughout this Form 10-Q, Citi’s results of operations and financial condition excluding the impact of divestiture-related impacts are non-GAAP financial measures.)

Results for the first quarter of 2022 included divestiture-related impacts of $(677) million in earnings before taxes ($(588) million after-tax), recorded in Legacy Franchises, reflecting the following:

•A $118 million pretax loss primarily related to the Asia markets, recorded in revenues; this pretax loss reflected an ACL release of $(104) million and a net revenue impact of $(14) million due to contractual adjustments

•A $71 million cost of credit reclassification to revenues, as once a divestiture is classified as held-for-sale, credit costs, including ACL builds/releases and net credit losses, are reclassified to revenues

•A $535 million goodwill impairment recorded in expenses, due to the re-segmentation and sequencing of divestitures, as well as $24 million of costs related to the Korea voluntary early retirement program, also recorded in expenses

•$(89) million of related tax benefits

These divestiture-related impacts, collectively, had a $(0.30) negative impact on EPS in the prior-year period. Excluding these divestiture-related impacts, EPS was $2.32.

Citigroup revenues of $21.4 billion in the first quarter of 2023 increased 12% from the prior-year period. As discussed above, reported revenues included net divestiture gains of approximately $1.0 billion this quarter, primarily related to the gain on sale of the India consumer banking business, compared to a loss of $47 million primarily related to the Asia markets in the prior-year period, both recorded in Legacy Franchises. Excluding these impacts, revenues increased 6%, reflecting strength across Services and Fixed income markets in Institutional Clients Group (ICG), as well as strong average loan growth in U.S. Personal Banking in Personal Banking and Wealth Management (PBWM). The higher revenues were partially offset by a decline in Investment banking and Equity markets in ICG and lower investment product revenues in Global Wealth Management (Global Wealth) in PBWM, as well as impacts from the closed exit markets and wind-downs in Legacy Franchises.

Citigroup’s end-of-period loans were $652 billion, down 1% versus the prior-year period, as growth in PBWM was more than offset by a decline in ICG and Legacy Franchises.

Citigroup’s end-of-period deposits were approximately $1.3 trillion, largely unchanged versus the prior-year period, as a decrease in PBWM, largely reflecting Global Wealth clients reallocating deposits to higher-yielding investments on the business’s platform, was offset by an increase in institutional certificates of deposit in Corporate/Other. 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 $13.3 billion increased 1% from the prior-year period. As discussed above, reported operating expenses included $73 million of divestiture-related costs this quarter, compared to $559 million in the prior-year period, both recorded in Legacy Franchises. Excluding these divestiture-related costs, expenses increased 5%, largely driven by the following:

•Approximately 1% by continued investments in Citi’s transformation, largely related to risk and controls, data and finance programs.

•Approximately 4% by structural expenses, largely in compensation and benefits, which included the full-year impact of hiring in the prior year, as well as hiring in the first quarter of 2023; and the impact of inflation and severance costs.

The increase in expenses was partially offset by productivity savings, lower business-led investments and the impact of foreign exchange translation, as well as expense reduction from the closed exit markets and wind-downs in Legacy Franchises.

As previously announced, Citi expects to incur higher expenses in 2023, primarily reflecting continued investments

in Citi’s transformation, other risk and control investments, volume-related expenses and inflation.

Cost of Credit

Citi’s total provisions for credit losses and for benefits and claims was a cost of $2.0 billion, compared to $0.8 billion in the prior-year period. This increase reflected higher net credit losses (see below) and a net build of $0.7 billion in the ACL for loans and unfunded commitments and other provisions, primarily driven by macroeconomic deterioration and growth in card revolving balances in PBWM. This compared to a net ACL release and other provisions of $(0.1) billion in the prior-year period. 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 $1.3 billion increased 49% from the prior year. Consumer net credit losses of $1.3 billion increased 52%, reflecting ongoing normalization, particularly in Branded cards and Retail services. Corporate net credit losses decreased to $22 million from $31 million.

Citi also expects to incur higher net credit losses in 2023, primarily driven by continued normalization toward pre-pandemic levels, particularly in the cards business in PBWM.

For additional information on Citi’s consumer and corporate credit costs, see each respective business’s results of operations and “Credit Risk” below.

Capital

Citigroup’s CET1 Capital ratio was 13.4% as of March 31, 2023, compared to 11.4% as of March 31, 2022, based on the Basel III Standardized Approach for determining risk-weighted assets (RWA). The increase was primarily driven by net income, the impacts from the closing of the Asia consumer banking business sales, and business actions, including a reduction in RWA, partially offset by the payment of common dividends.

Citigroup’s Supplementary Leverage ratio as of March 31, 2023 was 6.0%, compared to 5.6% as of March 31, 2022. The increase was driven by higher Tier 1 Capital, partially offset by a slight increase in Total Leverage Exposure. For additional information on Citi’s capital ratios and related components, see “Capital Resources” below.

During the first quarter of 2023, Citi continued to pause common share repurchases, in anticipation of any temporary capital impacts related to any potential signing of a sale agreement for its Mexico Consumer/SBMM businesses (for additional information, see “Macroeconomic and Other Risks and Uncertainties” and the capital return risk factor in “Risk Factors” in Citi’s 2022 Form 10-K) and to continue to have ample capital to serve its clients.

Institutional Clients Group

ICG net income of $3.3 billion increased 23%, primarily driven by lower cost of credit and higher revenues, partially offset by higher expenses. ICG operating expenses of $7.0 billion increased 4%, largely driven by continued investments in Citi’s transformation, other risk and control investments, volume-related expenses and other structural expenses, including severance costs, partially offset by productivity savings and the impact of foreign exchange translation.

ICG revenues of $11.2 billion increased 1% (including gain (loss) on loan hedges), as strength in Treasury and trade solutions (TTS), Securities services and Fixed income markets was partially offset by declines in Banking and Equity markets. Results included a loss on loan hedges of $199 million in the first quarter of 2023, compared with a gain on loan hedges of $169 million in the prior-year period.

Services revenues of $4.5 billion increased 29%. TTS revenues of $3.4 billion increased 31%, driven by 41% growth in net interest income and 13% growth in non-interest revenue. Strong performance in TTS was driven by higher interest rates and business actions, including growth in deposits, managing repricing and growth in fees. Securities services revenues of $1.1 billion increased 23%, as net interest income increased 94%, driven by higher interest rates across currencies, and were partially offset by a 6% decrease in non-interest revenue due to the impact of lower settlement volumes and lower market valuations on assets under custody and administration.

Markets revenues of $5.6 billion decreased 4%, as growth in Fixed income markets was more than offset by a decline in Equity markets. Fixed income markets revenues of $4.5 billion increased 4%, primarily driven by strength in rates and currencies, partially offset by lower revenues in spread products and other fixed income. Equity markets revenues of $1.1 billion declined 25%, primarily reflecting reduced client activity in cash and equity derivatives relative to a strong quarter in the prior-year period.

Banking revenues of $1.2 billion decreased 38%, including the gain (loss) on loan hedges in the current quarter and the prior-year period. Excluding the gain (loss) on loan hedges, Banking revenues of $1.4 billion decreased 21%, driven by lower revenues in Investment banking and Corporate lending. Investment banking revenues of $774 million decreased 25%, reflecting a decline in the overall market wallet, as continued geopolitical uncertainty, heightened macroeconomic uncertainty and volatility continued to impact client activity. Corporate lending revenues decreased 54%, including the impact of the gain (loss) on loan hedges. Excluding the impact of the gain (loss) on loan hedges, Corporate lending revenues decreased 14% versus the prior-year period, driven by lower volumes and higher hedging costs.

For additional information on the results of operations of ICG for the first quarter of 2023, see “Institutional Clients Group” below.

Personal Banking and Wealth Management

PBWM net income of $489 million decreased 74%, driven by higher cost of credit and higher expenses, partially offset by higher revenues. PBWM operating expenses of $4.3 billion increased 9%, primarily driven by continued investments in Citi’s transformation, other risk and control investments and severance costs, partially offset by productivity savings.

PBWM revenues of $6.4 billion increased 9%, primarily due to higher net interest income, driven by strong loan growth across U.S. Personal Banking, partially offset by a decline in non-interest revenue, primarily driven by lower investment product revenues in Global Wealth.

U.S. Personal Banking revenues of $4.7 billion increased 18%. Branded cards revenues of $2.5 billion increased 18%,

primarily driven by the higher net interest income, as card spend volume increased 9% and average loans increased 15%. Retail services revenues of $1.6 billion increased 24%, primarily driven by the higher net interest income. Retail banking revenues of $613 million increased 3%, primarily driven by higher mortgage revenue and strong growth in installment lending, partially offset by the impact of the transfer of relationships and the associated deposit balances to Global Wealth.

Global Wealth revenues of $1.8 billion decreased 9%, largely driven by investment product revenue headwinds and higher interest rates paid on deposits, particularly in the Private bank.

For additional information on the results of operations of PBWM for the first quarter of 2023, see “Personal Banking and Wealth Management” below.

Legacy Franchises

Legacy Franchises net income was $604 million, compared to a net loss of $383 million in the prior-year period, primarily driven by higher revenues and lower expenses, partially offset by higher cost of credit.

Legacy Franchises revenues of $2.9 billion increased 48%, primarily driven by the gain on sale of the India consumer banking business, partially offset by the absence of the closed exit markets and wind-downs.

Legacy Franchises expenses of $1.8 billion decreased 24%, largely driven by the absence of the goodwill impairment in Asia Consumer Banking (Asia Consumer) recorded in the prior-year period and the benefit of the closed exit markets and wind-downs.

For additional information on the results of operations of Legacy Franchises for the first quarter of 2023, see “Legacy Franchises” below.

Corporate/Other

Corporate/Other net income was $255 million, compared to $189 million in the prior-year period, reflecting higher revenues, partially offset by higher cost of credit, higher expenses and lower income tax benefits. Corporate/Other operating expenses of $310 million increased 19%, driven by continued investments in Citi’s transformation and other risk and control investments, partially offset by lower consulting expenses.

Corporate/Other revenues of $914 million increased from $190 million in the prior-year period, driven by higher net interest income. The higher net interest income was primarily due to the investment portfolio, largely driven by higher interest rates.

For additional information on the results of operations of Corporate/Other for the first quarter of 2023, see “Corporate/Other” below.

Macroeconomic and Other Risks and Uncertainties

Various geopolitical and macroeconomic challenges and uncertainties continue to adversely impact economic conditions in the U.S. and globally, including continued elevated levels of inflation, central banks continuing to increase interest rates, recent bank failures and related volatility, uncertainty with respect to raising the U.S. federal

debt limit, and economic and geopolitical challenges related to China and the Russia–Ukraine war. These and other factors have adversely affected financial markets, negatively impacted global economic growth rates and increased the risk of recession in the U.S., Europe and other countries. These and other factors could adversely affect Citi’s customers, clients, businesses, funding costs, expenses and overall results of operations and financial condition during the remainder of 2023.

For example, on April 18, 2023, the Federal Deposit Insurance Corporation (FDIC) announced that in May 2023, it will propose a special assessment to recover the uninsured deposit losses from the failures of Silicon Valley Bank and Signature Bank. On May 1, 2023, the FDIC announced that its Deposit Insurance Fund will incur additional costs related to the resolution of First Republic Bank. The FDIC did not indicate how it proposes covering these costs, but First Republic Bank was not resolved under special emergency provisions. Citibank, N.A. could incur an increase in its non-interest expense from the imposition of additional costs by the FDIC, although the amount of such costs is not yet known or reasonably estimable.

In addition, Citi could incur a significant loss on sale due to currency translation adjustment (CTA) losses (net of hedges) in Accumulated other comprehensive income (loss) (AOCI), allocated goodwill and intangibles and other AOCI loss components related to the potential signing of a sale agreement for its remaining consumer banking divestitures. The majority of these losses would be regulatory capital neutral at closing.

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 the remainder of 2023, see “First Quarter of 2023 Results Summary” above and each respective business’s results of operations, “Managing Global Risk,” including “Managing Global Risk—Other Risks—Country Risk—Russia” and “—Argentina,” and “Forward-Looking Statements” below and “Risk Factors” in Citi’s 2022 Form 10-K.

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RESULTS OF OPERATIONS

SUMMARY OF SELECTED FINANCIAL DATA

Citigroup Inc. and Consolidated Subsidiaries


	First Quarter
In millions of dollars, except per share amounts	2023		2022		% Change
Net interest income	$	13,348	$	10,871	23	%
Non-interest revenue	8,099		8,315		(3)
Revenues, net of interest expense	$	21,447	$	19,186	12	%
Operating expenses	13,289		13,165		1
Provisions for credit losses and for benefits and claims	1,975		755		NM
Income from continuing operations before income taxes	$	6,183	$	5,266	17	%
Income taxes	1,531		941		63
Income from continuing operations	$	4,652	$	4,325	8	%
Income (loss) from discontinued operations, net of taxes	(1)		(2)		50
Net income before attribution of noncontrolling interests	$	4,651	$	4,323	8	%
Net income attributable to noncontrolling interests	45		17		NM
Citigroup’s net income	$	4,606	$	4,306	7	%
Earnings per share
Basic
Income from continuing operations	$	2.21	$	2.03	9	%
Net income	2.21		2.03		9
Diluted
Income from continuing operations	$	2.19	$	2.02	8	%
Net income	2.19		2.02		8
Dividends declared per common share	0.51		0.51		—
Common dividends	$	1,000	$	1,014	(1)	%
Preferred dividends(1)	277		279		(1)
Common share repurchases	—		3,000		NM

Table continues on the next page, including footnotes.

SUMMARY OF SELECTED FINANCIAL DATA

(Continued)

Citigroup Inc. and Consolidated Subsidiaries


In millions of dollars, except per share amounts, ratios and direct staff	First Quarter
	2023			2022			% Change
At March 31:
Total assets	$	2,455,113		$	2,394,105		3	%
Total deposits	1,330,459			1,333,711			—
Long-term debt	279,684			253,954			10
Citigroup common stockholders’ equity	188,050			178,714			5
Total Citigroup stockholders’ equity	208,295			197,709			5
Average assets	2,462,244			2,374,040			4
Direct staff (in thousands)	240			228			5	%
Performance metrics
Return on average assets	0.76		%	0.74		%
Return on average common stockholders’ equity(2)	9.5			9.0
Return on average total stockholders’ equity(2)	9.2			8.7
Return on tangible common equity (RoTCE)(3)	10.9			10.5
Efficiency ratio (total operating expenses/total revenues, net)	62.0			68.6
Basel III ratios
CET1 Capital(4)(5)	13.44		%	11.43		%
Tier 1 Capital(4)(5)	15.31			13.05
Total Capital(4)	15.57			14.84
Supplementary Leverage ratio(4)	5.96			5.58
Citigroup common stockholders’ equity to assets	7.66		%	7.46		%
Total Citigroup stockholders’ equity to assets	8.48			8.26
Dividend payout ratio(6)	23			25
Total payout ratio(7)	23			100
Book value per common share	$	96.59		$	92.03		5	%
Tangible book value (TBV) per share(3)	84.21			79.03			7

(1) Certain series of preferred stock have semiannual payment dates. See Note 21 to the Consolidated Financial Statements in Citi’s 2022 Form 10-K.

(2) 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.

(3) RoTCE and TBV are non-GAAP financial measures. For information on RoTCE and TBV, see “Capital Resources—Tangible Common Equity, Book Value Per Share, Tangible Book Value Per Share and Return on Equity” below.

(4) 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.

(5) Certain of the above prior-period amounts have been revised to conform with enhancements made in the current period.

(6) Dividends declared per common share as a percentage of net income per diluted share.

(7) 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 9 and “Equity Security Repurchases” below for the component details.

NM Not meaningful

SEGMENT REVENUES AND INCOME (LOSS)

REVENUES


	First Quarter
In millions of dollars	2023		2022		% Change
Institutional Clients Group	$	11,233	$	11,160	1	%
Personal Banking and Wealth Management	6,448		5,905		9
Legacy Franchises	2,852		1,931		48
Corporate/Other	914		190		NM
Total Citigroup net revenues	$	21,447	$	19,186	12	%

NM Not meaningful

INCOME


	First Quarter
In millions of dollars	2023		2022		% Change
Income (loss) from continuing operations
Institutional Clients Group	$	3,298	$	2,658	24	%
Personal Banking and Wealth Management	489		1,860		(74)
Legacy Franchises	606		(385)		NM
Corporate/Other	259		192		35
Income from continuing operations	$	4,652	$	4,325	8	%
Discontinued operations	$	(1)	$	(2)	50	%
Less: Net income attributable to noncontrolling interests	45		17		NM
Citigroup’s net income	$	4,606	$	4,306	7	%

NM Not meaningful

SEGMENT BALANCE SHEET(1)—MARCH 31, 2023


In millions of dollars	Institutional Clients Group		Personal Banking and Wealth Management		Legacy Franchises		Corporate/Other and consolidating eliminations(2)		Citigroup parent company- issued long-term debt and stockholders’ equity(3)		Total Citigroup consolidated
Assets
Cash and deposits with banks, net of allowance	$	96,751	$	5,469	$	3,433	$	223,306	$	—	$	328,959
Securities borrowed and purchased under agreements to resell, net of allowance	383,485		455		258		—		—		384,198
Trading account assets	370,311		1,275		730		11,590		—		383,906
Investments, net of allowance	140,816		13		1,572		370,177		—		512,578
Loans, net of unearned income and allowance for credit losses on loans	277,953		321,555		35,319		(1)		—		634,826
Other assets, net of allowance	114,351		25,473		26,520		44,302		—		210,646
Net intersegment liquid assets(4)	385,240		135,430		26,353		(547,023)		—		—
Total assets	$	1,768,907	$	489,670	$	94,185	$	102,351	$	—	$	2,455,113
Liabilities and equity
Total deposits	$	819,387	$	436,925	$	52,690	$	21,457	$	—	$	1,330,459
Securities loaned and sold under agreements to repurchase	255,264		47		2,369		1		—		257,681
Trading account liabilities	183,763		514		246		487		—		185,010
Short-term borrowings	31,637		1		—		8,549		—		40,187
Long-term debt(3)	100,982		227		83		11,566		166,826		279,684
Other liabilities	105,245		10,850		23,353		13,625		—		153,073
Net intersegment funding (lending)(3)	272,629		41,106		15,444		45,942		(375,121)		—
Total liabilities	$	1,768,907	$	489,670	$	94,185	$	101,627	$	(208,295)	$	2,246,094
Total equity(5)	—		—		—		724		208,295		209,019
Total liabilities and equity	$	1,768,907	$	489,670	$	94,185	$	102,351	$	—	$	2,455,113

(1)The supplemental information presented in the table above reflects Citigroup’s consolidated GAAP balance sheet by reportable segment and component. The respective segment information depicts the assets and liabilities managed by each segment.

(2)Consolidating eliminations for total Citigroup and Citigroup parent company assets and liabilities are recorded within Corporate/Other.

(3)The total equity and the majority of long-term debt of Citigroup are reflected on the Citigroup parent company balance sheet (see Notes 17 and 26). Citigroup allocates stockholders’ equity and long-term debt to its businesses through intersegment allocations as shown above.

(4)Represents the attribution of Citigroup’s liquid assets (primarily consisting of cash, marketable equity securities and AFS debt securities) to the various businesses based on Liquidity Coverage ratio (LCR) assumptions.

(5)Corporate/Other equity represents noncontrolling interests.

INSTITUTIONAL CLIENTS GROUP

Institutional Clients Group (ICG) includes Services, Markets and Banking (for additional information on these businesses, see “Citigroup Operating Segments” above). ICG provides corporate, institutional and public sector clients around the world with a full range of wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate lending, investment banking and advisory services, cash management, trade finance and securities services. ICG transacts with clients in both cash instruments and derivatives, including fixed income, foreign currency, equity and commodity products. For more information on ICG’s business activities, see “Institutional Clients Group” in Citi’s 2022 Form 10-K.

ICG’s international presence is supported by trading floors in approximately 80 countries and a proprietary network in 95 countries and jurisdictions. As part of previously disclosed plans, Citi has ended nearly all of the institutional banking services it offered in Russia as of March 31, 2023, with the remaining services only those necessary to fulfill its remaining legal and regulatory obligations. In connection with this wind-down, Citi expects to incur approximately $210 million in total estimated charges (excluding the impact from any portfolio sales), of which $60 million relates to ICG. For additional information about Citi’s continued efforts to reduce its operations and exposure in Russia, see “Legacy Franchises” and “Managing Global Risk—Other Risks—Country Risk—Russia” below.

At March 31, 2023, ICG had $1.8 trillion in assets and $819 billion in deposits. Securities services managed $23.0 trillion in assets under custody and administration at March 31, 2023, of which Citi provided both custody and administrative services to certain clients related to $1.9 trillion of such assets. Managed assets under trust were $3.9 trillion at March 31, 2023. For additional information on these operations, see “Administration and Other Fiduciary Fees” in Note 5.


	First Quarter
In millions of dollars, except as otherwise noted	2023			2022			% Change
Commissions and fees	$	1,150		$	1,130		2	%
Administration and other fiduciary fees	654			672			(3)
Investment banking fees(1)	834			1,039			(20)
Principal transactions	3,709			4,442			(17)
Other	(142)			93			NM
Total non-interest revenue	$	6,205		$	7,376		(16)	%
Net interest income (including dividends)	5,028			3,784			33
Total revenues, net of interest expense	$	11,233		$	11,160		1	%
Total operating expenses	$	6,973		$	6,723		4	%
Net credit losses on loans	$	22		$	30		(27)	%
Credit reserve build (release) for loans	(75)			596			NM
Provision (release) for credit losses on unfunded lending commitments	(170)			352			NM
Provisions (releases) for credit losses on HTM debt securities and other assets	151			(7)			NM
Provisions (releases) for credit losses	$	(72)		$	971		NM
Income from continuing operations before taxes	$	4,332		$	3,466		25	%
Income taxes	1,034			808			28
Income from continuing operations	$	3,298		$	2,658		24	%
Noncontrolling interests	40			18			NM
Net income	$	3,258		$	2,640		23	%
Balance Sheet data (in billions of dollars)
EOP assets	$	1,769		$	1,704		4	%
Average assets	1,774			1,685			5
Efficiency ratio	62		%	60		%
Average loans by reporting unit (in billions of dollars)
Services	$	79		$	81		(2)	%
Banking	191			194			(2)
Markets	13			14			(7)
Total	$	283		$	289		(2)	%
Average deposits by reporting unit (in billions of dollars)
TTS	$	704		$	670		5	%
Securities services	125			135			(7)


Services	$	829	$	805	3	%
Markets and Banking	24		21		14
Total	$	853	$	826	3	%

(1) Investment banking fees are substantially composed of underwriting and advisory revenues.

NM Not meaningful

ICG Revenue Details


	First Quarter
In millions of dollars	2023		2022		% Change
Services
Net interest income	$	2,839	$	1,924	48	%
Non-interest revenue	1,628		1,541		6
Total Services revenues	$	4,467	$	3,465	29	%
Net interest income	$	2,358	$	1,676	41	%
Non-interest revenue	1,053		931		13
TTS revenues	$	3,411	$	2,607	31	%
Net interest income	$	481	$	248	94	%
Non-interest revenue	575		610		(6)
Securities services revenues	$	1,056	$	858	23	%
Markets
Net interest income	$	1,470	$	1,092	35	%
Non-interest revenue	4,131		4,717		(12)
Total Markets revenues(1)	$	5,601	$	5,809	(4)	%
Fixed income markets	$	4,454	$	4,289	4	%
Equity markets	1,147		1,520		(25)
Total Markets revenues	$	5,601	$	5,809	(4)	%
Rates and currencies	$	3,640	$	3,214	13	%
Spread products / other fixed income	814		1,075		(24)
Total Fixed income markets revenues	$	4,454	$	4,289	4	%
Banking
Net interest income	$	719	$	768	(6)	%
Non-interest revenue	446		1,118		(60)
Total Banking revenues	$	1,165	$	1,886	(38)	%
Investment banking
Advisory	$	289	$	347	(17)	%
Equity underwriting	109		185		(41)
Debt underwriting	376		496		(24)
Total Investment banking revenues	$	774	$	1,028	(25)	%
Corporate lending (excluding gains (losses) on loan hedges)(2)	$	590	$	689	(14)	%
Total Banking revenues (excluding gains (losses) on loan hedges)(2)	$	1,364	$	1,717	(21)	%
Gain (loss) on loan hedges(2)	(199)		169		NM
Total Banking revenues (including gains (losses) on loan hedges)(2)	$	1,165	$	1,886	(38)	%
Total ICG revenues, net of interest expense	$	11,233	$	11,160	1	%

(1) 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 with 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.

(2) 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 include the mark-to-market on the credit derivatives and the mark-to-market on the loans in the portfolio that are at fair value. 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.

NM Not meaningful

The discussion of the results of operations for ICG 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.

1Q23 vs. 1Q22

Net income of $3.3 billion increased 23%, primarily driven by lower cost of credit and higher revenues, partially offset by higher expenses.

Revenues increased 1% (including gain (loss) on loan hedges), driven by higher Services revenues, partially offset by lower Banking and Markets revenues. Services revenues were up 29%, driven by higher revenues in both TTS and Securities services. Banking revenues were down 38% (including the impact of the gain (loss) on loan hedges), reflecting lower revenues in both Investment banking and Corporate lending. Markets revenues were down 4%, driven by Equity markets, partially offset by higher Fixed income markets revenues.

Within Services:

•TTS revenues increased 31%, driven by 41% growth in net interest income and 13% growth in non-interest revenue, reflecting strong growth across all client segments. The increase in net interest income was primarily driven by higher interest rates and business actions, including growth in deposits and managing repricing. Average deposits increased 5%, largely driven by growth in EMEA and North America. Average loans decreased 2%, largely reflecting loans sales, primarily in North America. The increase in non-interest revenue was primarily due to strong fee growth across both the cash and trade businesses, reflecting solid client engagement and continued growth of underlying drivers, with U.S. dollar clearing volumes up 6%, cross-border flows up 10% and commercial card spend up 40%.

•Securities services revenues increased 23%, as net interest income grew 94%, driven by higher interest rates across currencies. The increase in revenues was partially offset by lower non-interest revenues (decrease of 6%), driven by lower settlement volumes (decline of 3%), along with lower market valuations on assets under custody and administration. The decline in non-interest revenue was partially offset by higher existing client activity and new client onboarding and continued elevated levels of corporate activity in Issuer services.

Within Markets:

•Fixed income markets revenues increased 4%, driven by growth in rates and currencies, primarily in North America, partially offset by a decline in spread products and other fixed income, primarily in North America and EMEA.

Rates and currencies increased 13%, driven by the rates business, reflecting increased interest rate volatility, partially offset by a decline in the currencies business due to a strong prior-year comparison. Spread products and other fixed income revenues decreased 24%, due to decreased institutional and corporate client activity in spread products and a decline in commodities, primarily

in North America, driven by decreased volatility against a strong prior-year comparison.

•Equity markets revenues decreased 25%, driven by equity derivatives, primarily reflecting lower activity in both corporate and institutional clients compared to a strong prior-year period. The lower revenues also reflected a decline in equity cash, driven by lower institutional client activity. Prime finance balances continued to grow in the quarter.

Within Banking:

•Investment banking revenues declined 25%, reflecting a decline in the overall market wallet, as continued geopolitical uncertainty, heightened macroeconomic uncertainty and volatility continued to impact client activity. Advisory revenues decreased 17%, reflecting a decline in North America and Asia, partially offset by growth in EMEA. The decrease in advisory revenues was driven by the lower market wallet, partially offset by wallet share gains. Equity underwriting revenues decreased 41%, reflecting a decline in North America, Asia and EMEA, driven by the decline in the market wallet as well as wallet share loss. Debt underwriting revenues decreased 24%, reflecting a decline in North America and EMEA, driven by the decline in the market wallet, partially offset by wallet share gains largely in the investment-grade portfolio.

•Corporate lending revenues decreased 54%, including the impact of the gain (loss) on loan hedges. Excluding the impact of the gain (loss) on loan hedges, revenues decreased 14%, primarily driven by lower volumes and higher hedging costs.

Expenses increased 4%, primarily driven by continued investment in Citi’s transformation, other risk and control investments, volume-related expenses and other structural expenses, including severance costs, partially offset by productivity savings and the impact of foreign exchange translation.

Provisions reflected a benefit of $72 million, compared to costs of $971 million in the prior-year period, largely driven by an ACL release for loans and unfunded lending commitments and other provisions, compared to an ACL build in the prior-year period. Net credit losses were $22 million, compared to $30 million in the prior-year period.

The ACL release was $94 million, compared to a build of $941 million in the prior-year period. The year-over-year decrease in the ACL build was due to the absence of Russia-related ACL builds in the prior-year period. The $94 million ACL release for the quarter was driven by a net ACL release for loans and unfunded lending commitments of $245 million, primarily due to reductions in Russia loan exposures, partially offset by $151 million related to an increase in transfer risk associated with exposures outside the U.S. For additional information on Citi’s ACL, see “Significant Accounting Policies and Significant Estimates” below.

For additional information on ICG’s corporate credit portfolio, see “Managing Global Risk—Credit Risk—Corporate Credit” below.

For additional information on trends in ICG’s deposits and loans, see “Managing Global Risk—Liquidity Risk—Loans” and “—Deposits” below.

For additional information about trends, uncertainties and risks related to ICG’s future results, see “Executive Summary” above, “Managing Global Risk—Other Risks—Country Risk—Argentina” and “—Russia” and “Forward-Looking Statements” below and “Risk Factors” in Citi’s 2022 Form 10-K.

PERSONAL BANKING AND WEALTH MANAGEMENT

Personal Banking and Wealth Management (PBWM) consists of U.S. Personal Banking and Global Wealth Management (Global Wealth). U.S. Personal Banking includes Branded cards and Retail services, which have the following proprietary cards portfolios: Cash, Rewards and Value portfolios and co-branded cards within Branded cards (including American Airlines and Costco), and co-brand and private label relationships within Retail services (including, among others, The Home Depot, Best Buy, Sears and Macy’s). U.S. Personal Banking also includes Retail banking, which provides traditional banking services to retail and small business customers. Global Wealth includes Private bank, Wealth at Work and Citigold and provides financial services to clients from affluent to ultra-high-net-worth 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.

At March 31, 2023, U.S. Personal Banking had 653 retail bank branches concentrated in the six key metropolitan areas of New York, Chicago, Los Angeles, San Francisco, Miami and Washington, D.C. U.S. Personal Banking had $146 billion in outstanding credit card balances, $115 billion in deposits and $39 billion in retail banking loans.

At March 31, 2023, Global Wealth had $322 billion in deposits, $85 billion in mortgage loans, $60 billion in personal and small business loans and $4 billion in outstanding credit card balances.


	First Quarter
In millions of dollars, except as otherwise noted	2023			2022			% Change
Net interest income	$	5,934		$	5,385		10	%
Non-interest revenue	514			520			(1)
Total revenues, net of interest expense	$	6,448		$	5,905		9	%
Total operating expenses	$	4,254		$	3,889		9	%
Net credit losses on loans	$	1,094		$	691		58	%
Credit reserve build (release) for loans	507			(1,062)			NM
Provision (release) for credit losses on unfunded lending commitments	(6)			(2)			NM
Provisions for benefits and claims (PBC), and other assets	(4)			(3)			(33)
Provisions (releases) for credit losses and PBC	$	1,591		$	(376)		NM
Income from continuing operations before taxes	$	603		$	2,392		(75)	%
Income taxes	114			532			(79)
Income from continuing operations	$	489		$	1,860		(74)	%
Noncontrolling interests	—			—			—
Net income	$	489		$	1,860		(74)	%
Balance Sheet data (in billions of dollars)
EOP assets	$	490		$	476		3	%
Average assets	495			474			4
Average loans	333			312			7
Average deposits	434			447			(3)
Efficiency ratio	66		%	66		%
Net credit losses as a percentage of average loans	1.33			0.90
Revenue by reporting unit and component
Branded cards	$	2,466		$	2,090		18	%
Retail services	1,613			1,299			24
Retail banking	613			595			3
U.S. Personal Banking	$	4,692		$	3,984		18	%
Private bank	$	567		$	779		(27)	%
Wealth at Work	193			183			5
Citigold	996			959			4
Global Wealth	$	1,756		$	1,921		(9)	%
Total	$	6,448		$	5,905		9	%

NM Not meaningful

1Q23 vs. 1Q22

Net income was $489 million, compared to $1.9 billion in the prior-year period, driven by higher cost of credit and higher expenses, partially offset by higher revenues.

Revenues increased 9%, primarily due to higher net interest income, driven by strong loan growth across U.S. Personal Banking. The increase was partially offset by lower non-interest revenue, primarily reflecting lower investment product revenues in Global Wealth.

U.S. Personal Banking revenues increased 18%, reflecting higher revenues in both cards and Retail banking.

Cards revenues increased 20%. Branded cards revenues increased 18%, primarily driven by higher net interest income on higher card spend volumes and higher loan balances. Branded cards new account acquisitions increased 17% and card spend volumes increased 9%. Average loans increased 15%, reflecting the higher card spend volumes and lower payment rates.

Retail services revenues increased 24%, primarily driven by higher net interest income on higher loan balances. Retail services card spend volumes decreased 3% and average loans increased 10%, reflecting lower payment rates.

Retail banking revenues increased 3%, primarily driven by higher mortgage revenue and strong growth in installment lending, partially offset by the impact of the transfer of relationships and the associated deposit balances to Global Wealth. Average loans increased 14%, primarily driven by higher mortgage originations. Average deposits decreased 6%, reflecting the transfer of relationships and the associated deposit balances to Global Wealth.

Global Wealth revenues decreased 9%, largely reflecting investment product revenue headwinds and lower net interest income in the Private bank. Average deposits decreased 2% and average loans decreased 1%. The decline in average deposits largely reflected Global Wealth clients reallocating deposits to higher-yielding investments on the business’s platform, partially offset by the transfer of deposit relationships from Retail banking. Client assets decreased 4%, driven by declines in equity market valuations and lower deposits. Global Wealth continued to grow client advisors, which increased 3%. Private bank revenues decreased 27%, driven by the investment product revenue headwinds and higher interest rates paid on deposits. In addition, Wealth at Work revenues increased 5% and Citigold revenues increased 4%.

Expenses increased 9%, primarily driven by continued investments in Citi’s transformation, other risk and control investments and severance costs, partially offset by productivity savings.

Provisions were $1.6 billion, compared to a benefit of $376 million in the prior-year period, largely driven by a net ACL build for loans and higher net credit losses. Net credit losses increased 58%, reflecting ongoing normalization from historically low levels, particularly in Branded cards (net credit losses up 72% to $521 million) and Retail services (net credit losses up 95% to $491 million).

The net ACL build was $0.5 billion, compared to a net release of $1.1 billion in the prior-year period, primarily driven by a deterioration in macroeconomic assumptions and growth in U.S. cards revolving balances. For additional information on Citi’s ACL, see “Significant Accounting Policies and Significant Estimates” below.

For additional information on U.S. Personal Banking’s Branded cards, Retail services and Retail banking portfolios, see “Credit Risk—Consumer Credit” below.

For additional information about trends, uncertainties and risks related to PBWM’s future results, see “Executive Summary” above and “Forward-Looking Statements” below, and “Risk Factors—Strategic Risks” in Citi’s 2022 Form 10-K.

LEGACY FRANCHISES

As of March 31, 2023, Legacy Franchises included (i) Asia Consumer Banking (Asia Consumer), representing the consumer banking operations of the remaining six Asia and EMEA exit countries, (ii) Mexico Consumer Banking (Mexico Consumer) and Mexico Small Business and Middle-Market Banking (Mexico SBMM), collectively Mexico Consumer/SBMM, and (iii) Legacy Holdings Assets (certain North America consumer mortgage loans and other legacy assets). Asia Consumer provides traditional retail banking and branded card products to retail and small business customers. Mexico Consumer/SBMM 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 through Citibanamex.

Legacy Franchises also included the following seven consumer banking businesses prior to their sale: Australia, until its closing on June 1, 2022; the Philippines, until its closing on August 1, 2022; Thailand and Malaysia, until their closings on November 1, 2022; Bahrain, until its closing on December 1, 2022; and India and Vietnam, until their closings on March 1, 2023.

In addition, Citi has entered into agreements to sell its consumer banking businesses in Indonesia and Taiwan, and has continued to make progress on its wind-downs of consumer banking operations in Korea and China and consumer banking and local commercial banking operations in Russia (see below). See Note 2 for additional information on Legacy Franchises’ consumer banking business sales and wind-downs.

In connection with Citi’s consumer and local commercial banking wind-down in Russia, Citi expects to incur approximately $210 million in total estimated charges (excluding the impact from any portfolio sales), of which $150 million relates to Legacy Franchises, largely driven by restructuring, vendor termination fees and other related charges. Citi’s previously disclosed referral agreement with a Russian bank to settle a portfolio of ruble-denominated credit card loans, subject to customer consents, can be terminated under certain circumstances and is being reevaluated as Citi reviews other alternatives. The credit card loans will remain held-for-investment as Citi continues to explore pathways to accelerate the wind-down in a manner that is compliant with all applicable regulatory and legal requirements. For additional information about Citi’s continued efforts to reduce its operations and exposure in Russia, see “Institutional Clients Group” above and “Managing Global Risk—Other Risks—Country Risk—Russia” below, as well as “Risk Factors” in Citi’s 2022 Form 10-K.

At March 31, 2023, on a combined basis, Legacy Franchises had 1,406 retail branches, $20 billion in retail banking loans and $53 billion in deposits. In addition, the businesses had $9 billion in outstanding card loan balances, and Mexico SBMM had $8 billion in outstanding corporate loan balances. These loan and deposit amounts exclude approximately $10 billion of loans ($9 billion of retail banking loans and $1 billion of credit card loan balances) and approximately $11 billion of deposits, all of which were reclassified to held-for-sale (HFS) (e.g., as Other assets and Other liabilities on the Consolidated Balance Sheet) as a result of Citi’s entry into agreements to sell certain remaining consumer banking businesses. See Note 2 for additional information.


	First Quarter
In millions of dollars, except as otherwise noted	2023			2022			% Change
Net interest income	$	1,290		$	1,508		(14)	%
Non-interest revenue	1,562			423			NM
Total revenues, net of interest expense	$	2,852		$	1,931		48	%
Total operating expenses	$	1,752		$	2,293		(24)	%
Net credit losses on loans	$	186		$	151		23	%
Credit reserve build (release) for loans	3			(146)			NM
Provision (release) for credit losses on unfunded lending commitments	(18)			124			NM
Provisions for benefits and claims (PBC), HTM debt securities and other assets	174			31			NM
Provisions (releases) for credit losses and PBC	$	345		$	160		NM
Income (loss) from continuing operations before taxes	$	755		$	(522)		NM
Income taxes	149			(137)			NM
Income (loss) from continuing operations	$	606		$	(385)		NM
Noncontrolling interests	2			(2)			NM
Net income (loss)	$	604		$	(383)		NM
Balance Sheet data (in billions of dollars)
EOP assets	$	94		$	122		(23)	%
Average assets	97			124			(22)
EOP loans	37			44			(16)
EOP deposits	53			51			3
Efficiency ratio	61		%	119		%
Revenue by reporting unit and component


Asia Consumer	$	1,509	$	787	92	%
Mexico Consumer/SBMM	1,322		1,139		16
Legacy Holdings Assets	21		5		NM
Total	$	2,852	$	1,931	48	%

NM Not meaningful

1Q23 vs. 1Q22

Net income was $604 million, compared to a net loss of $383 million in the prior-year period, driven by higher revenues and lower expenses, partially offset by higher cost of credit.

Results for the first quarter of 2023 included divestiture-related impacts of $953 million in earnings before taxes ($648 million after-tax), recorded in Legacy Franchises, reflecting the following:

•$1,018 million of net divestiture gains, primarily related to a gain on sale of the India consumer banking business, recorded in other revenue

•$73 million of aggregate divestiture-related costs, recorded in expenses

•An $8 million benefit of divestiture-related credit costs

•$305 million of related taxes

Results for the first quarter of 2022 included divestiture-related impacts of $(677) million ($(588) million after-tax), recorded in Legacy Franchises, reflecting the following:

•A $535 million goodwill impairment, recorded in expenses, due to the re-segmentation and sequencing of divestitures, as well as $24 million of costs related to the Korea voluntary early retirement program, also recorded in expenses

•$(89) million of related tax benefits

Revenues increased 48%, primarily driven by higher revenues in Asia Consumer and Mexico Consumer/SBMM.

Asia Consumer revenues of $1.5 billion increased from $787 million in the prior-year period, primarily driven by the India gain on sale, partially offset by the absence of closed exit markets and wind-downs.

Mexico Consumer/SBMM revenues increased 16%, as cards revenues increased 29%, SBMM revenues increased 18% and retail banking revenues increased 11%, primarily due to the benefit of FX translation as well as higher interest rates and higher lending volumes.

Legacy Holdings Assets revenues were largely unchanged.

Expenses decreased 24%, primarily driven by the absence of the goodwill impairment in the prior-year period and the benefit of the closed exit markets and wind-downs.

Provisions were $345 million, compared to $160 million in the prior-year period, primarily driven by an increase of $174 million due to a reserve build related to macroeconomic deterioration and an increase in transfer risk associated with exposures outside the U.S. The higher cost of credit was also driven by higher net credit losses, primarily reflecting higher lending volumes in Mexico Consumer.

For additional information about trends, uncertainties and risks related to Legacy Franchises’ future results, see “Executive Summary” above, “Managing Global Risk—Other Risks—Country Risk—Russia” and “Forward-Looking Statements” below and “Risk Factors—Strategic Risks” in Citi’s 2022 Form 10-K.

CORPORATE/OTHER

Activities not assigned to the operating segments (ICG, PBWM and Legacy Franchises) are included in Corporate/Other. Corporate/Other included 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. At March 31, 2023, Corporate/Other had $102 billion in assets, including Corporate Treasury investment securities and the Company’s deferred tax assets (DTAs). During the first quarter of 2023, Citi placed a $5 billion uninsured deposit with First Republic Bank, classified as Deposits with banks. On May 1, 2023, JPMorgan Chase Bank, N.A. (JPMorgan), as part of its purchase of certain assets and liabilities of First Republic Bank, assumed all of the deposits of First Republic Bank. As a result, Citi now has a $5 billion uninsured deposit with JPMorgan.


	First Quarter
In millions of dollars	2023		2022		% Change
Net interest income	$	1,096	$	194	NM
Non-interest revenue	(182)		(4)		NM
Total revenues, net of interest expense	$	914	$	190	NM
Total operating expenses	$	310	$	260	19	%
Provisions for HTM debt securities and other assets	$	111	$	—	—	%
Income (loss) from continuing operations before taxes	$	493	$	(70)	NM
Income taxes (benefits)	234		(262)		NM
Income from continuing operations	$	259	$	192	35	%
Income (loss) from discontinued operations, net of taxes	(1)		(2)		50
Net income before attribution to noncontrolling interests	$	258	$	190	36	%
Noncontrolling interests	3		1		NM
Net income	$	255	$	189	35	%

NM Not meaningful

1Q23 vs. 1Q22

Net income was $255 million, compared to $189 million in the prior-year period. The increase in net income was primarily driven by higher revenues, partially offset by lower discrete income tax benefits, higher cost of credit and higher expenses.

Revenues were $914 million, compared to $190 million in the prior-year period, primarily driven by higher net revenue from the investment portfolio, largely due to higher interest rates.

Expenses increased 19%, primarily driven by transformation and other risk and control investments, partially offset by lower consulting expenses.

Provisions were $111 million, primarily driven by a reserve build related to the uninsured deposit with First Republic Bank.

For additional information about trends, uncertainties and risks related to Corporate/Other’s future results, see “Executive Summary” above, “Forward-Looking Statements” below and “Risk Factors—Strategic Risks” in Citi’s 2022 Form 10-K.

CAPITAL RESOURCES

For additional information about capital resources, including Citi’s capital management, regulatory capital buffers, the stress testing component of capital planning and current regulatory capital standards and developments, see “Capital Resources” and “Risk Factors” in Citi’s 2022 Form 10-K.

During the first quarter of 2023, Citi returned a total of $1.0 billion of capital to common shareholders in the form of dividends. For additional information, see “Unregistered Sales of Equity Securities, Repurchases of Equity Securities and Dividends” below.

Common Equity Tier 1 Capital Ratio

Citi’s Common Equity Tier 1 (CET1) Capital ratio under the Basel III Standardized Approach was 13.4% as of March 31, 2023, relative to a required regulatory CET1 Capital ratio of 12.0% as of such date under the Standardized Approach. This compares to a CET1 Capital ratio of 13.0% as of December 31, 2022, relative to a required regulatory CET1 Capital ratio of 11.5% as of such date under the Standardized Approach.

Citi’s CET1 Capital ratio under the Basel III Advanced Approaches was 12.3% as of March 31, 2023, relative to a required regulatory CET1 Capital ratio of 10.5% as of such date under the Advanced Approaches framework. This compares to a CET1 Capital ratio of 12.2% as of December 31, 2022, relative to a required regulatory CET1 Capital ratio of 10.0% as of such date under the Advanced Approaches framework.

Citi’s CET1 Capital ratio increased under both the Standardized Approach and Advanced Approaches from December 31, 2022, driven primarily by net income, beneficial net movements in AOCI and impacts from the closing of the Asia consumer banking business sales, partially offset by the payment of common dividends. The increase in CET1 Capital under the Advanced Approaches was partially offset by an increase in Advanced Approaches RWA.

Stress Capital Buffer

In August 2022, the Federal Reserve Board finalized and announced Citi’s Stress Capital Buffer (SCB) requirement of 4.0% for the four-quarter window starting from October 1, 2022 to September 30, 2023.

In addition, as previously disclosed, commencing January 1, 2023, Citi’s GSIB surcharge increased from 3.0% to 3.5%, which is applicable to both the Standardized and the Advanced Approaches.

Accordingly, as of January 1, 2023, Citi is required to maintain a 12.0% required regulatory CET1 Capital ratio under the Standardized Approach, incorporating the 4.0% SCB and its 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) increased to 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.

For additional information regarding regulatory capital buffers, including the SCB and GSIB surcharge, see “Capital Resources—Regulatory Capital Buffers” in Citi’s 2022 Form 10-K.

Citigroup’s Capital Resources

The following table presents Citi’s required risk-based capital ratios as of March 31, 2023 and December 31, 2022:


	Advanced Approaches				Standardized Approach
	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
CET1 Capital ratio(1)	10.5	%	10.0	%	12.0	%	11.5	%
Tier 1 Capital ratio(1)	12.0		11.5		13.5		13.0
Total Capital ratio(1)	14.0		13.5		15.5		15.0

(1)As of January 1, 2023, Citi’s required risk-based capital ratios included the 4.0% SCB and 3.5% GSIB surcharge under the Standardized Approach, and the 2.5% Capital Conservation Buffer and 3.5% GSIB surcharge under the Advanced Approaches (all of which must be composed of CET1 Capital). See “Stress Capital Buffer” above for more information.

The following tables present Citi’s capital components and ratios as of March 31, 2023 and December 31, 2022:


	Advanced Approaches						Standardized Approach
In millions of dollars, except ratios	March 31, 2023			December 31, 2022			March 31, 2023			December 31, 2022
CET1 Capital(1)	$	153,753		$	148,930		$	153,753		$	148,930
Tier 1 Capital(1)	175,249			169,145			175,249			169,145
Total Capital (Tier 1 Capital + Tier 2 Capital)(1)	194,998			188,839			203,586			197,543
Total Risk-Weighted Assets	1,252,390			1,221,538			1,144,359			1,142,985
Credit Risk(1)	$	883,746		$	851,875		$	1,072,110		$	1,069,992
Market Risk	71,341			71,889			72,249			72,993
Operational Risk	297,303			297,774			—			—
CET1 Capital ratio(2)	12.28		%	12.19		%	13.44		%	13.03		%
Tier 1 Capital ratio(2)	13.99			13.85			15.31			14.80
Total Capital ratio(2)	15.57			15.46			17.79			17.28


In millions of dollars, except ratios	Required Capital Ratios		March 31, 2023			December 31, 2022
Quarterly Adjusted Average Total Assets(1)(3)			$	2,426,430		$	2,395,863
Total Leverage Exposure(1)(4)			2,939,744			2,906,773
Leverage ratio	4.0	%	7.22		%	7.06		%
Supplementary Leverage ratio	5.0		5.96			5.82

(1)Citi’s regulatory capital ratios and components reflect certain deferrals based on the modified regulatory capital transition provision related to the current expected credit losses (CECL) standard. For additional information, see “Capital Resources—Regulatory Capital Treatment—Modified Transition of the Current Expected Credit Losses Methodology” in Citi’s 2022 Form 10-K.

(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.

(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 March 31, 2023 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 March 31, 2023.

Components of Citigroup Capital


In millions of dollars	March 31, 2023		December 31, 2022
CET1 Capital
Citigroup common stockholders’ equity(1)	$	188,186	$	182,325
Add: Qualifying noncontrolling interests	207		128
Regulatory capital adjustments and deductions:
Add: CECL transition provision(2)	1,514		2,271
Less: Accumulated net unrealized gains (losses) on cash flow hedges, net of tax	(2,161)		(2,522)
Less: Cumulative unrealized net gain (loss) related to changes in fair value of financial liabilities attributable to own creditworthiness, net of tax	1,037		1,441
Less: Intangible assets:
Goodwill, net of related DTLs(3)	18,844		19,007
Identifiable intangible assets other than MSRs, net of related DTLs	3,607		3,411
Less: Defined benefit pension plan net assets; other	1,999		1,935
Less: DTAs arising from net operating loss, foreign tax credit and general business credit carry-forwards(4)	11,783		12,197
Less: Excess over 10%/15% limitations for other DTAs, certain common stock investments, and MSRs(4)(5)	1,045		325
Total CET1 Capital (Standardized Approach and Advanced Approaches)	$	153,753	$	148,930
Additional Tier 1 Capital
Qualifying noncumulative perpetual preferred stock(1)	$	20,109	$	18,864
Qualifying trust preferred securities(6)	1,408		1,406
Qualifying noncontrolling interests	29		30
Regulatory capital deductions:
Less: Other	50		85
Total Additional Tier 1 Capital (Standardized Approach and Advanced Approaches)	$	21,496	$	20,215
Total Tier 1 Capital (CET1 Capital + Additional Tier 1 Capital) (Standardized Approach and Advanced Approaches)	$	175,249	$	169,145
Tier 2 Capital
Qualifying subordinated debt	$	15,180	$	15,530
Qualifying noncontrolling interests	36		37
Eligible allowance for credit losses(2)(7)	13,476		13,426
Regulatory capital deduction:
Less: Other	355		595
Total Tier 2 Capital (Standardized Approach)	$	28,337	$	28,398
Total Capital (Tier 1 Capital + Tier 2 Capital) (Standardized Approach)	$	203,586	$	197,543
Adjustment for excess of eligible credit reserves over expected credit losses(2)(7)	$	(8,588)	$	(8,704)
Total Tier 2 Capital (Advanced Approaches)	$	19,749	$	19,694
Total Capital (Tier 1 Capital + Tier 2 Capital) (Advanced Approaches)	$	194,998	$	188,839

(1)Issuance costs of $136 million and $131 million related to outstanding noncumulative perpetual preferred stock at March 31, 2023 and December 31, 2022, respectively, were excluded from common stockholders’ equity and netted against such preferred stock in accordance with Federal Reserve Board 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. For additional information, see “Capital Resources—Regulatory Capital Treatment—Modified Transition of the Current Expected Credit Losses Methodology” in Citi’s 2022 Form 10-K.

(3)Includes goodwill “embedded” in the valuation of significant common stock investments in unconsolidated financial institutions.

(4)Of Citi’s $27.6 billion of net DTAs at March 31, 2023, $11.8 billion of net DTAs arising from net operating loss, foreign tax credit and general business credit tax carry-forwards, as well as $1.0 billion of DTAs arising from temporary differences that exceeded 10%/15% limitations, were excluded from Citi’s CET1 Capital as of March 31, 2023. 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.

Footnotes continue on the following page.

(5)Assets subject to 10%/15% limitations include MSRs, DTAs arising from temporary differences and significant common stock investments in unconsolidated financial institutions. At March 31, 2023 and December 31, 2022, 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.

(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 $4.9 billion and $4.7 billion at March 31, 2023 and December 31, 2022, respectively.

Citigroup Capital Rollforward


In millions of dollars	Three Months Ended March 31, 2023
CET1 Capital, beginning of period	$	148,930
Net income	4,606
Common and preferred dividends declared	(1,277)
Net decrease in treasury stock	705
Net decrease in common stock and additional paid-in capital	(84)
Net change in CTA net of hedges, net of tax	842
Net change in unrealized gains (losses) on debt securities AFS, net of tax	836
Net increase in defined benefit plans liability adjustment, net of tax	(104)
Net change in adjustment related to change in fair value of financial liabilities attributable to own creditworthiness, net of tax	78
Net decrease in excluded component of fair value hedges	12
Net decrease in goodwill, net of related DTLs	163
Net increase in identifiable intangible assets other than MSRs, net of related DTLs	(196)
Net decrease in defined benefit pension plan net assets	7
Net decrease in DTAs arising from net operating loss, foreign tax credit and general business credit carry-forwards	414
Net increase in excess over 10%/15% limitations for other DTAs, certain common stock investments and MSRs	(720)
Net decrease in CECL transition provision	(757)
Other	298
Net increase in CET1 Capital	$	4,823
CET1 Capital, end of period (Standardized Approach and Advanced Approaches)	$	153,753
Additional Tier 1 Capital, beginning of period	$	20,215
Net increase in qualifying perpetual preferred stock	1,245
Net increase in qualifying trust preferred securities	2
Other	34
Net increase in Additional Tier 1 Capital	$	1,281
Tier 1 Capital, end of period (Standardized Approach and Advanced Approaches)	$	175,249
Tier 2 Capital, beginning of period (Standardized Approach)	$	28,398
Net decrease in qualifying subordinated debt	(350)
Net increase in eligible allowance for credit losses	50
Other	239
Net decrease in Tier 2 Capital (Standardized Approach)	$	(61)
Tier 2 Capital, end of period (Standardized Approach)	$	28,337
Total Capital, end of period (Standardized Approach)	$	203,586
Tier 2 Capital, beginning of period (Advanced Approaches)	$	19,694
Net decrease in qualifying subordinated debt	(350)
Net increase in excess of eligible credit reserves over expected credit losses	166
Other	239
Net increase in Tier 2 Capital (Advanced Approaches)	$	55
Tier 2 Capital, end of period (Advanced Approaches)	$	19,749
Total Capital, end of period (Advanced Approaches)	$	194,998

Citigroup Risk-Weighted Assets Rollforward (Basel III Standardized Approach)


In millions of dollars	Three Months Ended March 31, 2023
Total Risk-Weighted Assets, beginning of period	$	1,142,985
Changes in Credit Risk-Weighted Assets
General credit risk exposures(1)	(14,352)
Derivatives	1,157
Repo-style transactions(2)	10,925
Securitization exposures	456
Equity exposures	1,788
Other exposures(3)	2,144
Net increase in Credit Risk-Weighted Assets	$	2,118
Changes in Market Risk-Weighted Assets
Risk levels	$	(2,082)
Model and methodology updates	1,338
Net increase in Market Risk-Weighted Assets	$	(744)
Total Risk-Weighted Assets, end of period	$	1,144,359

(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 months ended March 31, 2023 primarily due to a decrease in lending exposures and card activities, accompanied by divestitures.

(2)Repo-style transactions include repurchase and reverse repurchase transactions, as well as securities borrowing and securities lending transactions. Repo-style transactions increased during the three months ended March 31, 2023 primarily driven by increased activities across multiple business areas.

(3)Other exposures increased during the three months ended March 31, 2023 mainly driven by broad-based increases in other assets.

Citigroup Risk-Weighted Assets Rollforward (Basel III Advanced Approaches)


In millions of dollars	Three Months Ended March 31, 2023
Total Risk-Weighted Assets, beginning of period	$	1,221,538
Changes in Credit Risk-Weighted Assets
General credit risk exposures(1)	17,608
Derivatives(2)	5,016
Repo-style transactions	1,297
Securitization exposures(3)	2,093
Equity exposures(4)	2,411
Other exposures(5)	3,446
Net increase in Credit Risk-Weighted Assets	$	31,871
Changes in Market Risk-Weighted Assets
Risk levels	$	(1,886)
Model and methodology updates	1,338
Net increase in Market Risk-Weighted Assets	$	(548)
Net decrease in Operational Risk-Weighted Assets	$	(471)
Total Risk-Weighted Assets, end of period	$	1,252,390

(1)General credit risk exposures increased during the three months ended March 31, 2023.

(2)Derivatives increased during the three months ended March 31, 2023 primarily due to increases across equity, interest rate and commodities derivatives.

(3)Securitization exposures increased during the three months ended March 31, 2023 primarily driven by new issuances.

(4)Equity exposures increased during the three months ended March 31, 2023 primarily due to increases in market value of various investments.

(5)Other exposures increased during the three months ended March 31, 2023 mainly driven by broad-based increases in other assets.

Supplementary Leverage Ratio

The following table presents Citi’s Supplementary Leverage ratio and related components as of March 31, 2023 and December 31, 2022:


In millions of dollars, except ratios	March 31, 2023			December 31, 2022
Tier 1 Capital	$	175,249		$	169,145
Total Leverage Exposure
On-balance sheet assets(1)(2)	$	2,463,758		$	2,432,823
Certain off-balance sheet exposures(3)
Potential future exposure on derivative contracts	143,328			133,071
Effective notional of sold credit derivatives, net(4)	30,931			34,117
Counterparty credit risk for repo-style transactions(5)	18,255			17,169
Other off-balance sheet exposures	320,800			326,553
Total of certain off-balance sheet exposures	$	513,314		$	510,910
Less: Tier 1 Capital deductions	37,328			36,960
Total Leverage Exposure	$	2,939,744		$	2,906,773
Supplementary Leverage ratio	5.96		%	5.82		%

(1)Represents the daily average of on-balance sheet assets for the quarter.

(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 6.0% at March 31, 2023, compared to 5.8% at December 31, 2022. The quarter-over-quarter increase was primarily driven by an increase in Tier 1 Capital due to net income in the first quarter of 2023, issuance of qualifying perpetual preferred stock and beneficial net movements in AOCI, partially offset by an increase in Total Leverage Exposure.

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 Federal Reserve Board.

The following tables present the capital components and ratios for Citibank, Citi’s primary subsidiary U.S. depository institution, as of March 31, 2023 and December 31, 2022:


			Advanced Approaches						Standardized Approach
In millions of dollars, except ratios	Required Capital Ratios(1)		March 31, 2023			December 31, 2022			March 31, 2023			December 31, 2022
CET1 Capital(2)			$	151,724		$	149,593		$	151,724		$	149,593
Tier 1 Capital(2)			153,853			151,720			153,853			151,720
Total Capital (Tier 1 Capital + Tier 2 Capital)(2)(3)			167,065			165,131			174,608			172,647
Total Risk-Weighted Assets			1,038,394			1,003,747			968,749			982,914
Credit Risk(2)			$	762,148		$	728,082		$	932,787		$	948,150
Market Risk			35,532			34,403			35,962			34,764
Operational Risk			240,714			241,262			—			—
CET1 Capital ratio(4)(5)	7.0	%	14.61		%	14.90		%	15.66		%	15.22		%
Tier 1 Capital ratio(4)(5)	8.5		14.82			15.12			15.88			15.44
Total Capital ratio(4)(5)	10.5		16.09			16.45			18.02			17.56


In millions of dollars, except ratios	Required Capital Ratios		March 31, 2023			December 31, 2022
Quarterly Adjusted Average Total Assets(2)(6)			$	1,743,596		$	1,738,744
Total Leverage Exposure(2)(7)			2,191,870			2,189,541
Leverage ratio(5)	5.0	%	8.82		%	8.73		%
Supplementary Leverage ratio(5)	6.0		7.02			6.93

(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. For additional information, see “Capital Resources—Regulatory Capital Treatment—Modified Transition of the Current Expected Credit Losses Methodology” in Citi’s 2022 Form 10-K.

(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 indicated in the table above, Citibank’s capital ratios at March 31, 2023 were in excess of the regulatory capital requirements under the U.S. Basel III rules. In addition, Citibank was “well capitalized” as of March 31, 2023.

As presented in the table above, Citibank’s Supplementary Leverage ratio was 7.0% at March 31, 2023, compared to 6.9% at December 31, 2022. The quarter-over-quarter increase was primarily driven by an increase in Tier 1 Capital due to net income in the first quarter of 2023 and beneficial net movements in AOCI, partially offset by dividends and an increase in Total Leverage Exposure.

Impact of Changes on Citigroup and Citibank Capital Ratios

The following tables present the estimated 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 risk-weighted assets and quarterly adjusted average total assets, as well as Total Leverage Exposure (denominator), as of March 31, 2023. 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, risk-weighted assets, 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.


	Common Equity Tier 1 Capital ratio		Tier 1 Capital ratio		Total Capital ratio
In basis points	Impact of $100 million change in Common Equity Tier 1 Capital	Impact of $1 billion change in risk- weighted assets	Impact of $100 million change in Tier 1 Capital	Impact of $1 billion change in risk- weighted assets	Impact of $100 million change in Total Capital	Impact of $1 billion change in risk- weighted assets
Citigroup
Advanced Approaches	0.8	1.0	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	1.0	1.4	1.0	1.4	1.0	1.6
Standardized Approach	1.0	1.6	1.0	1.6	1.0	1.9


	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 March 31, 2023, 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 $15 billion, which exceeded the minimum requirement by $10 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 $28 billion at March 31, 2023, 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 March 31, 2023.

Total Loss-Absorbing Capacity (TLAC)

The table below details Citi’s eligible external TLAC and long-term debt (LTD) amounts and ratios, and each TLAC and LTD regulatory requirement, as well as the surplus amount in dollars in excess of each requirement:


	March 31, 2023
In billions of dollars, except ratios	External TLAC			LTD
Total eligible amount	$	340		$	160
% of Advanced Approaches risk- weighted assets	27.2		%	12.8		%
Regulatory requirement(1)(2)	22.5			9.5
Surplus amount	$	58		$	41
% of Total Leverage Exposure	11.6		%	5.4		%
Regulatory requirement	9.5			4.5
Surplus amount	$	61		$	27

(1) External TLAC includes method 1 GSIB surcharge of 2.0%.

(2) LTD includes method 2 GSIB surcharge of 3.5%.

As of March 31, 2023, Citi exceeded each of the TLAC and LTD regulatory requirements, resulting in a $27 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 “Capital Resources—Total Loss-Absorbing Capacity (TLAC)” in Citi’s 2022 Form 10-K.

Capital Resources (Full Adoption of CECL)(1)

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 March 31, 2023:


	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	%	12.0	%	12.13	%	13.28	%	7.0	%	14.48	%	15.52	%
Tier 1 Capital ratio	12.0		13.5		13.85		15.16		8.5		14.69		15.74
Total Capital ratio	14.0		15.5		15.43		17.64		10.5		15.96		17.89


	Required Capital Ratios		Citigroup	Required Capital Ratios		Citibank
Leverage ratio	4.0	%	7.14 %	5.0	%	8.75 %
Supplementary Leverage ratio	5.0		5.89	6.0		6.96

(1)See footnote 2 on 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.

Tangible Common Equity, Book Value Per Share, Tangible Book Value Per Share and Return on Equity

Tangible common equity (TCE), as defined by Citi, represents common stockholders’ equity less goodwill and identifiable intangible assets (other than mortgage servicing rights (MSRs)). RoTCE represents annualized net income available to common shareholders as a percentage of average TCE. Tangible book value per share represents average TCE divided by average common shares outstanding. Other companies may calculate these measures differently. TCE, RoTCE and tangible book value per share are non-GAAP financial measures.


In millions of dollars or shares, except per share amounts	March 31, 2023		December 31, 2022
Total Citigroup stockholders’ equity	$	208,295	$	201,189
Less: Preferred stock	20,245		18,995
Common stockholders’ equity	$	188,050	$	182,194
Less:
Goodwill	19,882		19,691
Identifiable intangible assets (other than MSRs)	3,974		3,763
Goodwill and identifiable intangible assets (other than MSRs) related to assets held-for-sale (HFS)	246		589
Tangible common equity (TCE)	$	163,948	$	158,151
Common shares outstanding (CSO)	1,946.8		1,937.0
Book value per share (common stockholders’ equity/CSO)	$	96.59	$	94.06
Tangible book value per share (TCE/CSO)	84.21		81.65


	Three Months Ended March 31,
In millions of dollars	2023			2022
Net income available to common shareholders	$	4,329		$	4,027
Average common stockholders’ equity	184,107			181,169
Average TCE	161,050			155,270
Return on average common stockholders’ equity	9.5		%	9.0		%
RoTCE	10.9			10.5

Managing Global Risk Table of Contents


MANAGING GLOBAL RISK						35
CREDIT RISK(1)						35
Corporate Credit						35
Consumer Credit						40
Additional Consumer and Corporate Credit Details						46
Loans Outstanding						46
Details of Credit Loss Experience						47
Allowance for Credit Losses on Loans (ACLL)						48
Non-Accrual Loans and Assets						51
LIQUIDITY RISK						53
High-Quality Liquid Assets (HQLA)						53
Liquidity Coverage Ratio (LCR)						53
Loans						54
Deposits						54
Long-Term Debt						55
Secured Funding Transactions and Short-Term Borrowings						57
Credit Ratings						58
MARKET RISK(1)						59
Market Risk of Non-Trading Portfolios						59
Market Risk of Trading Portfolios						70
OTHER RISKS						71
LIBOR Transition Risk						71
Country Risk						72
Russia						73
Ukraine						75
Argentina						76

(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 Federal Reserve Board, on Citi’s Investor Relations website.

MANAGING GLOBAL RISK

For Citi, effective risk management is of primary importance to its overall operations. Accordingly, Citi’s risk management process has been designed to monitor, evaluate and manage the principal risks it assumes in conducting its activities. Specifically, the activities that Citi engages in, and the risks those activities generate, must be consistent with Citi’s Mission and Value Proposition and the key Leadership Principles that support it, as well as Citi’s risk appetite. For more information on managing global risk at Citi, see “Managing Global Risk” in Citi’s 2022 Form 10-K.

CREDIT RISK

For more information on credit risk, including Citi’s credit risk management, measurement and stress testing, and Citi’s consumer and corporate credit portfolios, see “Credit Risk” and “Risk Factors” in Citi’s 2022 Form 10-K.

CORPORATE CREDIT

The following table details Citi’s corporate credit portfolio within ICG and the Mexico SBMM component of Legacy Franchises (excluding certain loans managed on a delinquency basis, loans carried at fair value and loans held-for-sale), and before consideration of collateral or hedges, by remaining tenor for the periods indicated:


	March 31, 2023								December 31, 2022								March 31, 2022
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)	$	124	$	124	$	35	$	283	$	134	$	122	$	27	$	283	$	164	$	117	$	21	$	302
Unfunded lending commitments (off-balance sheet)(2)	126		256		16		398		140		256		10		406		148		268		10		426
Total exposure	$	250	$	380	$	51	$	681	$	274	$	378	$	37	$	689	$	312	$	385	$	31	$	728

(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 shows the percentage of this portfolio by region based on Citi’s internal management geography:


	March 31, 2023		December 31, 2022		March 31, 2022
North America	56	%	56	%	56	%
EMEA	25		25		25
Asia	12		12		13
Latin America	7		7		6
Total	100	%	100	%	100	%

The maintenance of accurate and consistent risk ratings across the corporate credit portfolio facilitates the comparison of credit exposure across all lines of business, geographic regions 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 obligor 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
	March 31, 2023		December 31, 2022		March 31, 2022
AAA/AA/A	50	%	50	%	49	%
BBB	33		34		33
BB/B	15		14		16
CCC or below	2		2		2
Total	100	%	100	%	100	%

Note: Total exposure includes direct outstandings and unfunded lending commitments.

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 March 31, 2023. Citi has taken action 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 seen.

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’s 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 13 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
	March 31, 2023		December 31, 2022		March 31, 2022
Transportation and industrials	21	%	20	%	20	%
Technology, media and telecom	12		12		12
Consumer retail	12		11		11
Real estate	10		10		9
Commercial	8		8		7
Residential	2		2		2
Banks and finance companies(1)	10		10		9
Power, chemicals, metals and mining	9		9		9
Energy and commodities	7		7		7
Health	5		6		5
Insurance	4		4		4
Asset managers and funds	4		5		8
Public sector	3		3		3
Financial markets infrastructure	2		2		2

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.

The following table details Citi’s corporate credit portfolio by industry as of March 31, 2023:


									Non-investment grade						Selected metrics
In millions of dollars	Total credit exposure		Funded(1)		Unfunded(1)		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	$	139,154	$	57,779	$	81,375	$	109,177	$	22,358	$	7,225	$	394	$	354	$	20	$	(8,157)
Autos(4)	46,473		22,243		24,230		40,212		4,931		1,224		106		34		18		(2,846)
Transportation	26,249		10,646		15,603		19,261		3,887		2,965		136		35		—		(1,255)
Industrials	66,432		24,890		41,542		49,704		13,540		3,036		152		285		2		(4,056)
Technology, media and telecom	80,282		28,020		52,262		64,516		11,504		3,997		265		137		2		(6,021)
Consumer retail	79,723		34,262		45,461		61,831		14,723		2,880		289		119		1		(5,437)
Real estate	70,827		50,446		20,381		62,632		4,536		3,606		53		421		4		(710)
Commercial	54,464		35,892		18,572		46,445		4,530		3,436		53		415		4		(710)
Residential	16,363		14,554		1,809		16,187		6		170		—		6		—		—
Banks and finance companies	70,155		44,224		25,931		60,570		6,980		2,464		141		85		—		(940)
Power, chemicals, metals and mining	61,814		18,759		43,055		48,853		10,907		1,902		152		82		—		(4,993)
Power	24,393		5,022		19,371		20,415		3,284		575		119		8		—		(2,235)
Chemicals	23,747		8,175		15,572		18,289		4,545		903		10		51		—		(2,106)
Metals and mining	13,674		5,562		8,112		10,149		3,078		424		23		23		—		(652)
Energy and commodities(5)	45,328		13,302		32,026		38,099		5,889		1,221		119		86		(13)		(3,878)
Health	36,678		9,220		27,458		31,695		3,800		1,032		151		61		7		(2,935)
Insurance	28,975		3,831		25,144		27,886		1,050		39		—		6		—		(4,512)
Asset managers and funds	28,473		7,697		20,776		26,969		1,407		97		—		32		—		(535)
Public sector	22,871		11,081		11,790		19,764		2,348		736		23		51		2		(1,644)
Financial markets infrastructure	9,145		91		9,054		9,075		70		—		—		8		—		(17)
Securities firms	1,606		623		983		736		835		33		2		1		—		(3)
Other industries	6,464		3,387		3,077		4,137		2,073		208		46		54		(1)		(7)
Total	$	681,495	$	282,722	$	398,773	$	565,940	$	88,480	$	25,440	$	1,635	$	1,497	$	22	$	(39,789)

(1) Excludes $0.7 billion and $0.1 billion of funded and unfunded exposure at March 31, 2023, respectively, primarily related to the delinquency-managed loans and unearned income. Funded balances also exclude loans carried at fair value of $4.9 billion at March 31, 2023.

(2) Includes non-accrual loan exposures and 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 $39.8 billion of purchased credit protection, $36.9 billion represents the total notional amount of purchased credit derivatives on individual reference entities. The remaining $2.9 billion represents the first loss tranche of portfolios of purchased credit derivatives with a total notional of $24.5 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 in funded, with 100% rated investment grade) as of March 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., off-shore drilling entities) included in the table above. As of March 31, 2023, Citi’s total exposure to these energy-related entities was approximately $4.6 billion, of which approximately $2.6 billion consisted of direct outstanding funded loans.

Exposure to Commercial Real Estate

As of March 31, 2023, Citi’s total credit exposure to commercial real estate (CRE) was $66 billion, inclusive of $8 billion of exposure related to office buildings. This total CRE exposure consisted of (i) $55 billion related to corporate clients, mainly included in the real estate category in the table above, and (ii) $11 billion related to Private bank clients within PBWM that is not in the table above as they are not considered corporate exposures.

In addition, as of March 31, 2023, approximately 86% of Citi’s total CRE exposure was rated investment grade and more than 70% was to borrowers in the U.S.

As of March 31, 2023, the ACLL attributed to the total funded CRE exposure (including the Private bank) was approximately 1.2%, and there were $38 million of non-accrual CRE loans.

The following table details Citi’s corporate credit portfolio by industry as of December 31, 2022:


									Non-investment grade						Selected metrics
In millions of dollars	Total credit exposure		Funded(1)		Unfunded(1)		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	$	139,225	$	57,271	$	81,954	$	109,197	$	19,697	$	9,850	$	481	$	403	$	—	$	(8,459)
Autos(4)	47,482		21,995		25,487		40,795		5,171		1,391		125		52		—		(3,084)
Transportation	24,843		10,374		14,469		18,078		3,156		3,444		165		57		(30)		(1,270)
Industrials	66,900		24,902		41,998		50,324		11,370		5,015		191		294		30		(4,105)
Technology, media and telecom	81,211		28,931		52,280		65,386		12,308		3,308		209		169		11		(6,050)
Consumer retail	78,255		32,687		45,568		60,215		14,830		2,910		300		195		28		(5,395)
Real estate	70,676		48,539		22,137		63,023		4,722		2,881		50		138		2		(739)
Commercial	54,139		34,112		20,027		46,670		4,716		2,703		50		96		2		(739)
Residential	16,537		14,427		2,110		16,353		6		178		—		42		—		—
Banks and finance companies	65,623		42,276		23,347		57,368		5,718		2,387		150		266		65		(1,113)
Power, chemicals, metals and mining	59,404		18,326		41,078		47,395		10,466		1,437		106		226		34		(5,063)
Power	22,718		4,827		17,891		18,822		3,325		512		59		129		(3)		(2,306)
Chemicals	23,147		7,765		15,382		19,033		3,534		564		16		55		30		(2,098)
Metals and mining	13,539		5,734		7,805		9,540		3,607		361		31		42		7		(659)
Energy and commodities(5)	46,309		13,069		33,240		38,918		6,076		1,200		115		180		11		(3,852)
Health	41,836		8,771		33,065		36,954		3,737		978		167		84		7		(2,855)
Insurance	29,932		4,417		25,515		29,090		801		41		—		44		—		(3,884)
Asset managers and funds	35,983		13,162		22,821		34,431		1,492		60		—		95		—		(759)
Public sector	23,705		11,736		11,969		20,663		2,084		956		2		77		4		(1,633)
Financial markets infrastructure	8,742		60		8,682		8,672		70		—		—		—		—		(18)
Securities firms	1,462		569		893		625		678		157		2		2		—		(2)
Other industries	6,697		3,651		3,046		4,842		1,568		238		49		19		16		(8)
Total	$	689,060	$	283,465	$	405,595	$	576,779	$	84,247	$	26,403	$	1,631	$	1,898	$	178	$	(39,830)

(1) Excludes $0.6 billion and $0.1 billion of funded and unfunded exposure at December 31, 2022, respectively, primarily related to the delinquency-managed loans and unearned income. Funded balances also exclude loans carried at fair value of $5.1 billion at December 31, 2022.

(2) Includes non-accrual loan exposures and 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 $39.8 billion of purchased credit protection, $36.6 billion represents the total notional amount of purchased credit derivatives on individual reference entities. The remaining $3.2 billion represents the first loss tranche of portfolios of purchased credit derivatives with a total notional of $27.6 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 $17.4 billion ($10.3 billion in funded, with more than 99% rated investment grade) as of December 31, 2022.

(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., off-shore drilling entities) included in the table above. As of December 31, 2022, Citi’s total exposure to these energy-related entities was approximately $4.7 billion, of which approximately $2.4 billion consisted of direct outstanding funded loans.

Credit Risk Mitigation

As part of its overall risk management activities, Citigroup uses credit derivatives and other risk mitigants to hedge portions of the credit risk in its corporate credit portfolio, in addition to outright asset sales. Citi may enter into partial-term hedges as well as full-term hedges. In advance of the expiration of partial-term 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 March 31, 2023, December 31, 2022 and March 31, 2022, ICG had economic hedges on the corporate credit portfolio of $39.8 billion, $39.8 billion and $37.9 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 ICG corporate credit portfolio exposures with the following risk rating distribution:

Rating of Hedged Exposure


	March 31, 2023		December 31, 2022		March 31, 2022
AAA/AA/A	42	%	39	%	38	%
BBB	44		45		46
BB/B	11		12		13
CCC or below	3		4		3
Total	100	%	100	%	100	%

CONSUMER CREDIT

Consumer Credit Portfolio

The following table shows Citi’s quarterly end-of-period consumer loans(1):


In billions of dollars	1Q22(2)		2Q22(2)		3Q22(2)		4Q22(2)		1Q23(2)
Personal Banking and Wealth Management
U.S. Personal Banking
Cards
Branded cards	$	85.9	$	91.6	$	93.7	$	100.2	$	97.1
Retail services	44.1		45.8		46.7		50.5		48.4
Retail banking
Mortgages(5)	30.5		32.3		32.3		33.4		35.3
Personal, small business and other	2.8		3.1		3.5		3.7		3.9
Global Wealth(3)(4)
Cards	3.8		4.0		4.0		4.6		4.4
Mortgages(5)	75.4		77.8		82.0		84.0		85.2
Personal, small business and other(6)	71.0		67.0		65.1		60.6		60.3
Total	$	313.5	$	321.6	$	327.3	$	337.0	$	334.6
Legacy Franchises
Asia Consumer(7)	$	19.5	$	17.3	$	13.4	$	13.3	$	10.0
Mexico Consumer (excludes Mexico SBMM)	13.6		13.5		13.7		14.8		16.3
Legacy Holdings Assets(8)	3.7		3.2		3.2		3.0		2.8
Total	$	36.8	$	34.0	$	30.3	$	31.1	$	29.1
Total consumer loans	$	350.3	$	355.6	$	357.6	$	368.1