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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

OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from  to
Commission file number 1-9924
Citigroup Inc.
(Exact name of registrant as specified in its charter)
Delaware52-1568099
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
388 Greenwich Street, New YorkNY10013
(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 filerAccelerated filerNon-accelerated filerSmaller 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
MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Executive Summary
Summary of Selected Financial Data
Segment Revenues and Income (Loss)
Segment Balance Sheet
Institutional Clients Group
Personal Banking and Wealth Management
Legacy Franchises
Corporate/Other
CAPITAL RESOURCES
MANAGING GLOBAL RISK TABLE OF
CONTENTS
MANAGING GLOBAL RISK
SIGNIFICANT ACCOUNTING POLICIES AND
SIGNIFICANT ESTIMATES
DISCLOSURE CONTROLS AND
PROCEDURES
DISCLOSURE PURSUANT TO SECTION 219 OF
THE IRAN THREAT REDUCTION AND SYRIA
HUMAN RIGHTS ACT
FORWARD-LOOKING STATEMENTS
FINANCIAL STATEMENTS AND NOTES
TABLE OF CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS (UNAUDITED)
UNREGISTERED SALES OF EQUITY SECURITIES,
REPURCHASES OF EQUITY SECURITIES AND
DIVIDENDS
GLOSSARY OF TERMS AND ACRONYMS






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.

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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.
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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

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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.
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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
5


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 amounts20232022% Change
Net interest income$13,348 $10,871 23 %
Non-interest revenue8,099 8,315 (3)
Revenues, net of interest expense$21,447 $19,186 12 %
Operating expenses13,289 13,165 1 
Provisions for credit losses and for benefits and claims1,975 755 NM
Income from continuing operations before income taxes$6,183 $5,266 17 %
Income taxes1,531 941 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 interests45 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 income2.21 2.03 9 
Diluted
Income from continuing operations$2.19 $2.02 8 %
Net income2.19 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.

8


SUMMARY OF SELECTED FINANCIAL DATA
(Continued)
Citigroup Inc. and Consolidated Subsidiaries

In millions of dollars, except per share amounts, ratios and direct staffFirst Quarter
20232022% Change
At March 31:
Total assets$2,455,113 $2,394,105 3 %
Total deposits 1,330,459 1,333,711  
Long-term debt279,684 253,954 10 
Citigroup common stockholders’ equity188,050 178,714 5 
Total Citigroup stockholders’ equity208,295 197,709 5 
Average assets2,462,244 2,374,040 4 
Direct staff (in thousands)
240 228 5 %
Performance metrics
Return on average assets0.76 %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 assets7.66 %7.46 %
Total Citigroup stockholders’ equity to assets8.48 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

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SEGMENT REVENUES AND INCOME (LOSS)

REVENUES

First Quarter
In millions of dollars20232022% Change
Institutional Clients Group$11,233 $11,160 1 %
Personal Banking and Wealth Management6,448 5,905 9 
Legacy Franchises2,852 1,931 48 
Corporate/Other914 190 NM
Total Citigroup net revenues$21,447 $19,186 12 %

NM Not meaningful

INCOME

First Quarter
In millions of dollars20232022% Change
Income (loss) from continuing operations
Institutional Clients Group$3,298 $2,658 24 %
Personal Banking and Wealth Management489 1,860 (74)
Legacy Franchises606 (385)NM
Corporate/Other259 192 35 
Income from continuing operations $4,652 $4,325 8 %
Discontinued operations$(1)$(2)50 %
Less: Net income attributable to noncontrolling interests45 17 NM
Citigroup’s net income$4,606 $4,306 7 %

NM Not meaningful
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SEGMENT BALANCE SHEET(1)—MARCH 31, 2023

In millions of dollarsInstitutional
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 allowance383,485 455 258   384,198 
Trading account assets370,311 1,275 730 11,590  383,906 
Investments, net of allowance140,816 13 1,572 370,177  512,578 
Loans, net of unearned income and allowance for credit losses on loans277,953 321,555 35,319 (1) 634,826 
Other assets, net of allowance114,351 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 liabilities183,763 514 246 487  185,010 
Short-term borrowings31,637 1  8,549  40,187 
Long-term debt(3)
100,982 227 83 11,566 166,826 279,684 
Other liabilities105,245 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.
11


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 noted20232022% Change
Commissions and fees$1,150 $1,130 2 %
Administration and other fiduciary fees654 672 (3)
Investment banking fees(1)
834 1,039 (20)
Principal transactions3,709 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 $30 (27)%
Credit reserve build (release) for loans(75)596 NM
Provision (release) for credit losses on unfunded lending commitments(170)352 NM
Provisions (releases) for credit losses on HTM debt securities and other assets151 (7)NM
Provisions (releases) for credit losses$(72)$971 NM
Income from continuing operations before taxes$4,332 $3,466 25 %
Income taxes1,034 808 28 
Income from continuing operations$3,298 $2,658 24 %
Noncontrolling interests40 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 ratio62 %60 %
Average loans by reporting unit (in billions of dollars)
Services$79 $81 (2)%
Banking191 194 (2)
Markets13 14 (7)
Total$283 $289 (2)%
Average deposits by reporting unit (in billions of dollars)
TTS$704 $670 5 %
Securities services125 135 (7)
12


Services$829 $805 3 %
Markets and Banking24 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 dollars20232022% Change
Services
Net interest income$2,839 $1,924 48 %
Non-interest revenue1,628 1,541 6 
Total Services revenues$4,467 $3,465 29 %
Net interest income$2,358 $1,676 41 %
Non-interest revenue1,053 931 13 
TTS revenues$3,411 $2,607 31 %
Net interest income$481 $248 94 %
Non-interest revenue575 610 (6)
Securities services revenues$1,056 $858 23 %
Markets
Net interest income$1,470 $1,092 35 %
Non-interest revenue4,131 4,717 (12)
Total Markets revenues(1)
$5,601 $5,809 (4)%
Fixed income markets$4,454 $4,289 4 %
Equity markets1,147 1,520 (25)
Total Markets revenues$5,601 $5,809 (4)%
Rates and currencies$3,640 $3,214 13 %
Spread products / other fixed income814 1,075 (24)
Total Fixed income markets revenues$4,454 $4,289 4 %
Banking
Net interest income$719 $768 (6)%
Non-interest revenue446 1,118 (60)
Total Banking revenues$1,165 $1,886 (38)%
Investment banking
Advisory$289 $347 (17)%
Equity underwriting109 185 (41)
Debt underwriting376 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
13


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.
14


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.

15


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 noted20232022% Change
Net interest income$5,934 $5,385 10 %
Non-interest revenue514 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 loans507 (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 taxes114 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 loans333 312 7 
Average deposits434 447 (3)
Efficiency ratio66 %66 %
Net credit losses as a percentage of average loans1.33 0.90 
Revenue by reporting unit and component
Branded cards$2,466 $2,090 18 %
Retail services1,613 1,299 24 
Retail banking613 595 3 
U.S. Personal Banking$4,692 $3,984 18 %
Private bank$567 $779 (27)%
Wealth at Work193 183 5 
Citigold996 959 4 
Global Wealth
$1,756 $1,921 (9)%
Total$6,448 $5,905 9 %

NM Not meaningful

16


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.

17


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 noted20232022% Change
Net interest income$1,290 $1,508 (14)%
Non-interest revenue1,562 423 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 loans3 (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 assets174 31 NM
Provisions (releases) for credit losses and PBC$345 $160 NM
Income (loss) from continuing operations before taxes$755 $(522)NM
Income taxes149 (137)NM
Income (loss) from continuing operations$606 $(385)NM
Noncontrolling interests2 (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 loans37 44 (16)
EOP deposits53 51 3 
Efficiency ratio61 %119 %
Revenue by reporting unit and component
18


Asia Consumer$1,509 $787 92 %
Mexico Consumer/SBMM1,322 1,139 16 
Legacy Holdings Assets21 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 $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


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.

19


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 dollars20232022% 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 interests3 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.




20


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.
21


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 ApproachesStandardized Approach
March 31, 2023December 31, 2022March 31, 2023December 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 ApproachesStandardized 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, 2023December 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.
22


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.
23


(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.

24


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 securities2 
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 






25


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 updates1,338 
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.
26


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 transactions1,297 
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 updates1,338 
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.
27


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 ratiosMarch 31, 2023December 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 contracts143,328 133,071 
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 exposures320,800 326,553 
Total of certain off-balance sheet exposures$513,314 $510,910 
Less: Tier 1 Capital deductions37,328 36,960 
Total Leverage Exposure$2,939,744 $2,906,773 
Supplementary Leverage ratio5.96 %5.82 %

(1)Represents the daily average of on-balance sheet assets for the quarter.
(2)Citi’s regulatory capital ratios and components reflect certain deferrals based on the modified regulatory capital transition provision related to the CECL standard. 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)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.
28


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 ApproachesStandardized Approach
In millions of dollars, except ratios
Required Capital Ratios(1)
March 31, 2023December 31, 2022March 31, 2023December 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, 2023December 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.
29


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
0.81.00.81.10.81.2
Standardized Approach
0.91.20.91.30.91.6
Citibank
Advanced Approaches
1.01.41.01.41.01.6
Standardized Approach
1.01.61.01.61.01.9
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
0.40.30.30.2
Citibank
0.60.50.50.3

30


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 ratiosExternal TLACLTD
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 Exposure11.6 %5.4 %
Regulatory requirement9.5 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.
31


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:






CitigroupCitibank
Required Capital Ratios, Advanced ApproachesRequired Capital Ratios, Standardized ApproachAdvanced ApproachesStandardized Approach
Required Capital Ratios(2)
Advanced ApproachesStandardized 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 ratio14.0 15.5 15.43 17.64 10.5 15.96 17.89 
Required Capital RatiosCitigroupRequired Capital RatiosCitibank
Leverage ratio
4.0 % 7.14 %5.0 % 8.75 %
Supplementary Leverage ratio
5.0 5.896.0 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.

32


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
20232022
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 
33


Managing Global Risk Table of Contents

MANAGING GLOBAL RISK
CREDIT RISK(1)
Corporate Credit
Consumer Credit
Additional Consumer and Corporate Credit Details
Loans Outstanding
Details of Credit Loss Experience
Allowance for Credit Losses on Loans (ACLL)48
Non-Accrual Loans and Assets
LIQUIDITY RISK
High-Quality Liquid Assets (HQLA)
Liquidity Coverage Ratio (LCR)
Loans54
Deposits54
Long-Term Debt55
Secured Funding Transactions and Short-Term Borrowings57
Credit Ratings58
MARKET RISK(1)
Market Risk of Non-Trading Portfolios
Market Risk of Trading Portfolios
OTHER RISKS
LIBOR Transition Risk
Country Risk
Russia
Ukraine
Argentina

(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.

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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, 2023December 31, 2022March 31, 2022
In billions of dollarsDue
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, 2022March 31,
2022
North America56 %56 %56 %
EMEA25 25 25 
Asia12 12 13 
Latin America7 
Total100 %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.
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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/A50 %50 %49 %
BBB33 34 33 
BB/B15 14 16 
CCC or below2 
Total100 %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 industrials21 %20 %20 %
Technology, media and telecom12 12 12 
Consumer retail 12 11 11 
Real estate10 10 
Commercial8 
Residential2 
Banks and finance companies(1)
10 10 
Power, chemicals, metals and mining9 
Energy and commodities7 
Health5 
Insurance4 
Asset managers and funds4 
Public sector3 
Financial markets infrastructure2 
Other industries1 
Total100 %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.
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The following table details Citi’s corporate credit portfolio by industry as of March 31, 2023:

Non-investment gradeSelected metrics
In millions of dollarsTotal credit exposure
Funded(1)
Unfunded(1)
Investment gradeNon-criticizedCriticized performing
Criticized non-performing(2)
30 days or more past due and accruingNet 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)
Transportation26,249 10,646 15,603 19,261 3,887 2,965 136 35 — (1,255)
Industrials66,432 24,890 41,542 49,704 13,540 3,036 152 285 (4,056)
Technology, media and telecom80,282 28,020 52,262 64,516 11,504 3,997 265 137 2 (6,021)
Consumer retail79,723 34,262 45,461 61,831 14,723 2,880 289 119 1 (5,437)
Real estate70,827 50,446 20,381 62,632 4,536 3,606 53 421 4 (710)
Commercial54,464 35,892 18,572 46,445 4,530 3,436 53 415 (710)
Residential16,363 14,554 1,809 16,187 170 — — — 
Banks and finance companies70,155 44,224 25,931 60,570 6,980 2,464 141 85  (940)
Power, chemicals, metals and mining61,814 18,759 43,055 48,853 10,907 1,902 152 82  (4,993)
Power24,393 5,022 19,371 20,415 3,284 575 119 — (2,235)
Chemicals23,747 8,175 15,572 18,289 4,545 903 10 51 — (2,106)
Metals and mining13,674 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)
Health36,678 9,220 27,458 31,695 3,800 1,032 151 61 7 (2,935)
Insurance28,975 3,831 25,144 27,886 1,050 39  6  (4,512)
Asset managers and funds28,473 7,697 20,776 26,969 1,407 97  32  (535)
Public sector22,871 11,081 11,790 19,764 2,348 736 23 51 2 (1,644)
Financial markets infrastructure9,145 91 9,054 9,075 70   8  (17)
Securities firms1,606 623 983 736 835 33 2 1  (3)
Other industries6,464 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.




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

Non-investment gradeSelected metrics
In millions of dollarsTotal credit exposure
Funded(1)
Unfunded(1)
Investment gradeNon-criticizedCriticized performing
Criticized non-performing(2)
30 days or more past due and accruingNet 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)
Transportation24,843 10,374 14,469 18,078 3,156 3,444 165 57 (30)(1,270)
Industrials66,900 24,902 41,998 50,324 11,370 5,015 191 294 30 (4,105)
Technology, media and telecom81,211 28,931 52,280 65,386 12,308 3,308 209 169 11 (6,050)
Consumer retail78,255 32,687 45,568 60,215 14,830 2,910 300 195 28 (5,395)
Real estate70,676 48,539 22,137 63,023 4,722 2,881 50 138 (739)
Commercial54,139 34,112 20,027 46,670 4,716 2,703 50 96 (739)
Residential16,537 14,427 2,110 16,353 178 — 42 — — 
Banks and finance companies65,623 42,276 23,347 57,368 5,718 2,387 150 266 65 (1,113)
Power, chemicals, metals and mining59,404 18,326 41,078 47,395 10,466 1,437 106 226 34 (5,063)
Power22,718 4,827 17,891 18,822 3,325 512 59 129 (3)(2,306)
Chemicals23,147 7,765 15,382 19,033 3,534 564 16 55 30 (2,098)
Metals and mining13,539 5,734 7,805 9,540 3,607 361 31 42 (659)
Energy and commodities(5)
46,309 13,069 33,240 38,918 6,076 1,200 115 180 11 (3,852)
Health41,836 8,771 33,065 36,954 3,737 978 167 84 (2,855)
Insurance29,932 4,417 25,515 29,090 801 41 — 44 — (3,884)
Asset managers and funds35,983 13,162 22,821 34,431 1,492 60 — 95 — (759)
Public sector23,705 11,736 11,969 20,663 2,084 956 77 (1,633)
Financial markets infrastructure8,742 60 8,682 8,672 70 — — — — (18)
Securities firms1,462 569 893 625 678 157 — (2)
Other industries6,697 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.

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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/A42 %39 %38 %
BBB44 45 46 
BB/B11 12 13 
CCC or below3 
Total100 %100 %100 %

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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 services44.1 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 other2.8 3.1 3.5 3.7 3.9 
Global Wealth(3)(4)
Cards3.8 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