CITIGROUP INC - Quarter Report: 2023 June (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 June 30, 2023


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

For the transition period from to

Commission file number 1-9924

Citigroup Inc.

(Exact name of registrant as specified in its charter)

Delaware

52-1568099

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

388 Greenwich Street,

New York

10013

(Address of principal executive offices)

(Zip code)

(212) 559-1000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934 formatted in Inline XBRL: See Exhibit 99.01

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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 June 30, 2023: 1,925,702,484

Available on the web at www.citigroup.com

CITIGROUP’S SECOND QUARTER 2023—FORM 10-Q


OVERVIEW			1
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			3
Executive Summary			3
Summary of Selected Financial Data			8
Segment Revenues and Income (Loss)			10
Segment Balance Sheet			11
Institutional Clients Group			12
Personal Banking and Wealth Management			16
Legacy Franchises			18
Corporate/Other			21
CAPITAL RESOURCES			22
MANAGING GLOBAL RISK TABLE OF CONTENTS			35
MANAGING GLOBAL RISK			36
SIGNIFICANT ACCOUNTING POLICIES AND SIGNIFICANT ESTIMATES			77
DISCLOSURE CONTROLS AND PROCEDURES			82
DISCLOSURE PURSUANT TO SECTION 219 OF THE IRAN THREAT REDUCTION AND SYRIA HUMAN RIGHTS ACT			82
FORWARD-LOOKING STATEMENTS			83
FINANCIAL STATEMENTS AND NOTES TABLE OF CONTENTS			87
CONSOLIDATED FINANCIAL STATEMENTS			88
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)			95
UNREGISTERED SALES OF EQUITY SECURITIES, REPURCHASES OF EQUITY SECURITIES AND DIVIDENDS			210
OTHER INFORMATION			210
GLOSSARY OF TERMS AND ACRONYMS			212

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) and Citigroup’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 (First Quarter of 2023 Form 10-Q).

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 providing an additional meaningful depiction of underlying fundamentals of period-to-period operating results. 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.

Citi’s non-GAAP financial measures in this Form 10-Q include:

•Results excluding divestiture-related impacts

•Tangible common equity (TCE), return on tangible common equity (RoTCE) and tangible book value per share (TBVPS)

•Banking and Corporate lending revenues excluding gains (losses) on loan hedges

•Non-ICG Markets net interest income

Citi’s results excluding divestiture-related impacts represent as reported, or GAAP, financial results adjusted for items that are incurred and recognized, which are wholly and necessarily a consequence of actions taken to sell (including through a public offering), dispose of or wind down business activities associated with Citi’s announced 14 exit markets. For additional information on results excluding divestiture-related impacts, see “Executive Summary” and “Legacy Franchises” below.

For more information on TCE, RoTCE and TBVPS, see “Capital Resources—Tangible Common Equity, Book Value Per Share, Tangible Book Value Per Share and Return on Equity” below.

For more information on Banking and Corporate lending revenues excluding gains (losses) on loan hedges, see “Executive Summary” and “Institutional Clients Group” below.

For more information on non-ICG Markets net interest income, see “Market Risk—Non-ICG Markets Net Interest Income” below.

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

Citigroup Operating Segments

Institutional
Clients Group
(ICG)

Personal Banking
and Wealth Management
(PBWM)

Legacy
Franchises

•Services

–Treasury and trade solutions (TTS)

–Securities services

•Markets

–Equity markets

–Fixed income markets

•Banking

–Investment banking

–Corporate lending

•U.S. Personal Banking

–Cards

◦Branded cards

◦Retail services

–Retail banking

•Global Wealth Management

(Global Wealth)

–Private bank

–Wealth at Work

–Citigold

•Asia Consumer Banking

(Asia Consumer)

–Retail banking and Branded 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 Branded cards

–Traditional middle-market banking products and services

•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

For additional information on ICG, PBWM and Legacy Franchises, including their businesses and products and services, see each

operating segment’s discussion and analysis of its results of operations below.

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

Citigroup Regions(1)

North
America

Europe,

Middle East

and Africa

(EMEA)

Latin
America

Asia

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

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

EXECUTIVE SUMMARY

Second Quarter of 2023—Results Continued to Benefit from Diversified Business Model and Strong Balance Sheet

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

•Citi’s revenues decreased 1% versus the prior-year period, both on a reported basis and excluding divestiture-related impacts (see “Legacy Franchises” below). The decrease in revenues was primarily driven by lower non-interest revenues, mainly offset by higher net interest income.

•Citi’s expenses increased 9% versus the prior-year period, both on a reported basis and excluding divestiture-related impacts (see “Legacy Franchises” below), largely driven by continued investments in risk and controls, business-led and enterprise-led investments, volume growth and macroeconomic factors, including inflation, as well as severance costs. The expense increase was partially offset by productivity savings and an expense reduction from the exited markets and continued wind-downs (see “Expenses” below).

•Citi’s cost of credit was $1.8 billion versus $1.3 billion in the prior-year period. The increase was primarily driven by higher net credit losses, reflecting the continued normalization in net credit losses in Branded cards and Retail services.

•Citi returned $2.0 billion to common shareholders in the form of dividends and share repurchases. As previously disclosed, in July 2023 Citi’s Board of Directors declared a quarterly common stock dividend of $0.53 per share for the third quarter of 2023, up from $0.51 in the previous quarter. Citi intends to maintain a quarterly common dividend of at least $0.53 per share, subject to financial and macroeconomic conditions, as well as Board of Directors approval.

•Citi’s Common Equity Tier 1 (CET1) Capital ratio under the Basel III Standardized Approach increased to 13.4% as of June 30, 2023, compared to 12.0% as of June 30, 2022 (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. As previously disclosed, on October 1, 2023, Citi’s required regulatory CET1 Capital ratio will increase to 12.3% from 12.0% under the Standardized Approach reflecting the increase in the Stress Capital Buffer (SCB) requirement to 4.3% from 4.0% (see “Capital Resources—Stress Capital Buffer” below).

•In May 2023, Citi announced that it intends to pursue an initial public offering (IPO) of its consumer, small business and middle-market banking operations in Mexico, following the planned separation from Citi’s Institutional Clients Group (ICG) and Private bank businesses in Mexico, both of which will remain part of Citi.

•Citi continued to make progress on its other consumer banking business divestitures in the second quarter of 2023, including working toward the closing of its Taiwan and Indonesia sale transactions in the second half of 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. In addition, Citi intends to restart the exit process for the consumer banking business in Poland later in 2023, subject to market conditions.

Second Quarter of 2023 Results Summary

Citigroup

Citigroup reported net income of $2.9 billion, or $1.33 per share, compared to net income of $4.5 billion, or $2.19 per share in the prior-year period. The decrease in net income was primarily driven by the higher expenses and the higher cost of credit, as well as the lower revenues. Citigroup’s effective tax rate was approximately 27% in the current quarter versus 20% in the prior-year period, largely driven by the geographic mix of earnings (see “Income Taxes” below). Earnings per share (EPS) decreased 39% from the prior-year period, reflecting the lower net income and an approximate 1% increase in average diluted shares outstanding.

Results for the second quarter of 2023 included divestiture-related impacts of $(73) million in earnings before taxes ($(92) million after-tax). See “Legacy Franchises” and “Corporate/Other” below for details about the divestiture-related impacts.

These divestiture-related impacts, collectively, had a $(0.04) negative impact on EPS in the current quarter. Excluding these divestiture-related impacts, EPS was $1.37. (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 second quarter of 2022 included divestiture-related impacts of $48 million in earnings before taxes ($35 million after-tax). See “Legacy Franchises” below for details about the divestiture-related impacts.

These divestiture-related impacts, collectively, had a $0.02 beneficial impact on EPS in the prior-year period. Excluding these divestiture-related impacts, EPS was $2.17.

Citigroup revenues of $19.4 billion in the second quarter of 2023 decreased 1% from the prior-year period, both on a reported basis and excluding divestiture-related impacts. The lower revenues reflected a decline in revenues across Markets and Investment banking in ICG and Global Wealth Management (Global Wealth) in Personal Banking and Wealth Management (PBWM), as well as a revenue reduction from the exited markets and continued wind-downs in Legacy Franchises. The decline in revenues was largely offset by strength across Services in ICG, U.S. Personal Banking revenues in PBWM and higher revenues from the investment portfolio in Corporate/Other.

Citigroup’s end-of-period loans were $661 billion, up 1% versus the prior-year period, driven by growth in PBWM, primarily driven by U.S. Personal Banking, largely offset by declines 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 ICG, primarily driven by Securities services, 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 $13.6 billion increased 9% from the prior-year period, both on a reported basis and excluding divestiture-related impacts. The higher expenses largely reflected continued investments in risk and controls, business-led and enterprise-led investments, volume growth and macroeconomic factors, including inflation, as well as severance costs. The higher expenses were partially offset by productivity savings and expense reductions from the exited markets and wind-downs in Legacy Franchises.

As previously disclosed, Citi expects a sequential increase in expenses for the third quarter of 2023, primarily reflecting continued investments in Citi’s transformation and other risk and controls.

Cost of Credit

Citi’s total provisions for credit losses and for benefits and claims was a cost of $1.8 billion, compared to $1.3 billion in the prior-year period. This increase was driven by higher net credit losses (see below), partially offset by a lower net build of $320 million in the ACL for loans and unfunded commitments and other provisions. The net ACL build and other provisions in the current quarter were primarily driven by growth in card balances in Branded cards and Retail services. This compared to a net ACL build and other provisions of $424 million 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 $1.5 billion increased 77% from the prior year. Consumer net credit losses of $1.4 billion increased 73%, reflecting ongoing normalization, particularly in Branded cards and Retail services. Corporate net credit losses increased to $75 million from $23 million.

Citi also expects to incur higher year-over-year net credit losses for the third quarter of 2023, primarily driven by continued normalization, 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 June 30, 2023, compared to 12.0% as of June 30, 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 and share repurchases.

As previously announced, during the second quarter of 2023, Citi resumed common share repurchases, and repurchased $1.0 billion of common shares (see “Unregistered Sales of Equity Securities, Repurchases of Equity Securities and Dividends” below). Citi will continue to assess common share repurchases on a quarter-by-quarter basis given uncertainty regarding regulatory capital requirements. For additional information, see “Capital Resources—Regulatory Capital Standards and Developments” below.

Citigroup’s Supplementary Leverage ratio as of June 30, 2023 was 6.0%, compared to 5.7% as of June 30, 2022. The increase was driven by higher Tier 1 Capital, partially offset by an increase in Total Leverage Exposure. For additional information on Citi’s capital ratios and related components, see “Capital Resources” below.

Institutional Clients Group

ICG net income of $2.2 billion decreased 45%, primarily driven by lower revenues, higher expenses and higher cost of credit. ICG operating expenses of $7.3 billion increased 13%, primarily driven by continued investments in Treasury and trade solutions (TTS), continued risk and controls investments and severance costs in Markets and Investment banking, partially offset by productivity savings.

ICG revenues of $10.4 billion decreased 9% (including gain (loss) on loan hedges), primarily driven by a decline in Markets and Banking, partially offset by growth in Services. Results included a loss on loan hedges of $66 million in the second quarter of 2023, compared with a gain on loan hedges of $494 million in the prior-year period.

Services revenues of $4.7 billion increased 15%. TTS revenues of $3.5 billion increased 15%, driven by 18% growth in net interest income and 8% growth in non-interest revenue. Strong performance in TTS was primarily driven by higher interest rates and non-interest revenue benefits from continued growth of underlying drivers, primarily an 11% increase in cross-border transaction value and a 15% increase in commercial card spend volume. Securities services revenues of $1.1 billion increased 15%, as net interest income increased 62%, largely driven by higher interest rates across currencies.

Markets revenues of $4.6 billion decreased 13%, driven by lower revenues in both Fixed income markets and Equity markets relative to strong performance in the prior-year period, as well as low volatility in the second quarter of 2023. Fixed income markets revenues of $3.5 billion decreased 13%, driven by declines in currencies and commodities, partially offset by modest growth in rates. Equity markets revenues of $1.1 billion decreased 10%, primarily reflecting a decline in equity derivatives revenues.

Banking revenues of $1.2 billion decreased 44%, 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 $1.2 billion decreased 22%, driven by lower revenues in Investment banking and Corporate lending. Investment banking revenues of $612 million decreased 24%, reflecting a decline in the overall

market wallet, as continued macroeconomic and geopolitical uncertainty continued to adversely impact client activity. Corporate lending revenues decreased 56%, including the impact of the gain (loss) on loan hedges. Excluding the impact of the gain (loss) on loan hedges, Corporate lending revenues decreased 20% versus the prior-year period, primarily driven by the impacts of foreign currency translation and lower lending volumes. (As used throughout this Form 10-Q, Citi’s results of operations and financial condition excluding the impact of the gain (loss) on loan hedges are non-GAAP financial measures.)

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

Personal Banking and Wealth Management

PBWM net income of $494 million decreased 11%, driven by higher cost of credit and higher expenses, partially offset by higher revenues. PBWM operating expenses of $4.2 billion increased 5%, primarily driven by continued risk and controls investments.

PBWM revenues of $6.4 billion increased 6%, as net interest income growth, driven by strong loan growth across U.S. Personal Banking, was partially offset by a decline in non-interest revenue, driven by lower investment product revenues in Global Wealth.

U.S. Personal Banking revenues of $4.6 billion increased 11%, primarily driven by higher revenues in cards, partially offset by lower Retail banking revenues. Branded cards revenues of $2.4 billion increased 8%, primarily driven by the higher net interest income, as average loans increased 14%. Retail services revenues of $1.6 billion increased 27%, primarily driven by the higher net interest income, as well as lower partner payments. Retail banking revenues of $594 million decreased 9%, primarily reflecting the transfer of certain relationships and the associated deposit balances to Global Wealth.

Global Wealth revenues of $1.8 billion decreased 5%, largely driven by continued investment product revenue headwinds and higher interest rates paid on deposits, partially offset by the benefits from the continued transfer of Retail banking relationships.

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

Legacy Franchises

Legacy Franchises recorded a net loss of $125 million, compared to a net loss of $17 million in the prior-year period, primarily driven by higher cost of credit, partially offset by lower expenses. Legacy Franchises expenses of $1.8 billion decreased 2%, primarily driven by the impact of exited markets and continued wind-downs.

Legacy Franchises revenues of $1.9 billion decreased 1%, driven by the reductions from exited markets and continued wind-downs, partially offset by the benefit of higher rates and lending volumes in Mexico Consumer/SBMM, as well as higher revenues in Legacy Holdings Assets.

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

Corporate/Other

Corporate/Other net income was $356 million, compared to $50 million in the prior-year period, largely driven by higher net interest income from Deposits with banks and the investment portfolio, a reserve release related to the repayment of the previously disclosed First Republic Bank deposit and the prior-year release of a CTA loss (net of hedges) from AOCI (for additional information, see Note 2). The increase in net income was partially offset by lower income tax benefits and higher expenses. Corporate/Other operating expenses of $302 million increased from $160 million in the prior-year period, primarily driven by the impact of inflation and severance costs and the absence of certain settlements that occurred in the prior-year period, partially offset by lower consulting expenses.

Corporate/Other revenues of $677 million increased from $255 million in the prior-year period, primarily driven by higher net interest income from Deposits with banks and the investment portfolio, largely due to higher interest rates.

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

Macroeconomic and Other Risks and Uncertainties

Various geopolitical, macroeconomic and regulatory challenges and uncertainties continue to adversely impact economic conditions in the U.S. and globally, including central banks continuing to increase interest rates, continued elevated levels of inflation and economic and geopolitical challenges related to both China and the Russia–Ukraine war. These and other factors have adversely affected financial markets, negatively impacted global economic growth rates and raised fears of recession in the U.S., Europe and other regions and countries. In addition, 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.

In May 2023, the Federal Deposit Insurance Corporation (FDIC) issued a proposal that would implement a special assessment to recover its uninsured deposit losses from recent bank failures. The FDIC estimated that the preliminary cost of the failures is approximately $15.8 billion, an estimate that would be periodically adjusted. If finalized as proposed, the FDIC is proposing to collect the special assessment at an annual rate of approximately 12.5 basis points of uninsured deposits, over eight quarterly assessment periods beginning in 2024. Citi is likely to incur a significant increase in its operating expenses if the final rule for the FDIC special assessment is enacted as proposed, which is expected before the end of 2023. For additional information on the expected impact, see Note 26.

In July 2023, the U.S. banking agencies issued a notice of proposed rulemaking, known as the Basel III Endgame, related to regulatory capital requirements. The rule as proposed would have a material impact on Citi’s current capital position; however, its finalization and implementation will be a

multiyear process, including phase-in periods to meet the new capital requirements. Citi plans to comment on the proposal and adapt business activities to address associated impacts, if necessary, and will be in compliance with the final rule, once it is in effect and implemented. For additional information, see “Capital Resources—Regulatory Capital Standards and Developments” below.

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 “Second 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


	Second Quarter						Six Months
In millions of dollars, except per share amounts	2023		2022		% Change		2023		2022		% Change
Net interest income	$	13,900	$	11,964	16	%	$	27,248	$	22,835	19	%
Non-interest revenue	5,536		7,674		(28)		13,635		15,989		(15)
Revenues, net of interest expense	$	19,436	$	19,638	(1)	%	$	40,883	$	38,824	5	%
Operating expenses	13,570		12,393		9		26,859		25,558		5
Provisions for credit losses and for benefits and claims	1,824		1,274		43		3,799		2,029		87
Income from continuing operations before income taxes	$	4,042	$	5,971	(32)	%	$	10,225	$	11,237	(9)	%
Income taxes	1,090		1,182		(8)		2,621		2,123		23
Income from continuing operations	$	2,952	$	4,789	(38)	%	$	7,604	$	9,114	(17)	%
Income (loss) from discontinued operations, net of taxes	(1)		(221)		100		(2)		(223)		99
Net income before attribution of noncontrolling interests	$	2,951	$	4,568	(35)	%	$	7,602	$	8,891	(14)	%
Net income attributable to noncontrolling interests	36		21		71		81		38		NM
Citigroup’s net income	$	2,915	$	4,547	(36)	%	$	7,521	$	8,853	(15)	%
Earnings per share
Basic
Income from continuing operations	$	1.34	$	2.32	(42)	%	$	3.55	$	4.34	(18)	%
Net income	1.34		2.20		(39)		3.54		4.23		(16)
Diluted
Income from continuing operations	$	1.33	$	2.30	(42)	%	$	3.52	$	4.32	(19)	%
Net income	1.33		2.19		(39)		3.52		4.20		(16)
Dividends declared per common share	0.51		0.51		—		1.02		1.02		—
Common dividends	$	1,004	$	1,010	(1)	%	$	2,004	$	2,024	(1)	%
Preferred dividends(1)	288		238		21		565		517		9
Common share repurchases	1,000		250		NM		1,000		3,250		(69)

Table continues on the next page, including footnotes.

SUMMARY OF SELECTED FINANCIAL DATA

(Continued)

Citigroup Inc. and Consolidated Subsidiaries


In millions of dollars, except per share amounts, ratios and direct staff	Second Quarter								Six Months
	2023			2022			% Change		2023			2022			% Change
At June 30:
Total assets	$	2,423,675		$	2,380,904		2	%
Total deposits	1,319,867			1,321,848			—
Long-term debt	274,510			257,425			7
Citigroup common stockholders’ equity	188,474			180,019			5
Total Citigroup stockholders’ equity	208,719			199,014			5
Average assets	2,465,614			2,380,053			4		$	2,463,929		$	2,377,047		4	%
Direct staff (in thousands)	240			231			4	%
Performance metrics
Return on average assets	0.47		%	0.77		%			0.62		%	0.75		%
Return on average common stockholders’ equity(2)	5.6			9.7					7.5			9.3
Return on average total stockholders’ equity(2)	5.6			9.2					7.4			9.0
Return on tangible common equity (RoTCE)(3)	6.4			11.2					8.7			10.8
Efficiency ratio (total operating expenses/total revenues, net)	69.8			63.1					65.7			65.8
Basel III ratios
CET1 Capital(4)(5)	13.37		%	11.95		%
Tier 1 Capital(4)(5)	15.24			13.62
Total Capital(4)(5)	16.04			15.20
Supplementary Leverage ratio(5)	5.97			5.66
Citigroup common stockholders’ equity to assets	7.78		%	7.56		%
Total Citigroup stockholders’ equity to assets	8.61			8.36
Dividend payout ratio(6)	38			23					29		%	24		%
Total payout ratio(7)	76			29					43			63
Book value per common share	$	97.87		$	92.95		5	%
Tangible book value per share (TBVPS)(3)	85.34			80.25			6

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

(4) Citi’s binding CET1 Capital and Tier 1 Capital ratios were derived under the Basel III Standardized Approach, whereas Citi’s binding Total Capital ratio was derived under the Basel III Advanced Approaches framework for both periods presented.

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

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

(7) Total common dividends declared plus common share repurchases as a percentage of net income available to common shareholders (Net income less preferred dividends). See “Consolidated Statement of Changes in Stockholders’ Equity,” Note 9 and “Equity Security Repurchases” below for the component details.

NM Not meaningful

SEGMENT REVENUES AND INCOME (LOSS)

REVENUES


	Second Quarter						Six Months
In millions of dollars	2023		2022		% Change		2023		2022		% Change
Institutional Clients Group	$	10,441	$	11,419	(9)	%	$	21,674	$	22,579	(4)	%
Personal Banking and Wealth Management	6,395		6,029		6		12,843		11,934		8
Legacy Franchises	1,923		1,935		(1)		4,775		3,866		24
Corporate/Other	677		255		NM		1,591		445		NM
Total Citigroup net revenues	$	19,436	$	19,638	(1)	%	$	40,883	$	38,824	5	%

NM Not meaningful

INCOME


	Second Quarter						Six Months
In millions of dollars	2023		2022		% Change		2023		2022		% Change
Income (loss) from continuing operations
Institutional Clients Group	$	2,219	$	3,978	(44)	%	$	5,517	$	6,636	(17)	%
Personal Banking and Wealth Management	494		553		(11)		983		2,413		(59)
Legacy Franchises	(122)		(15)		NM		484		(400)		NM
Corporate/Other	361		273		32		620		465		33
Income from continuing operations	$	2,952	$	4,789	(38)	%	$	7,604	$	9,114	(17)	%
Discontinued operations	$	(1)	$	(221)	100	%	$	(2)	$	(223)	99	%
Less: Net income attributable to noncontrolling interests	36		21		71		81		38		NM
Citigroup’s net income	$	2,915	$	4,547	(36)	%	$	7,521	$	8,853	(15)	%

NM Not meaningful

SEGMENT BALANCE SHEET(1)—JUNE 30, 2023


In millions of dollars	Institutional Clients Group		Personal Banking and Wealth Management		Legacy Franchises		Corporate/Other and consolidating eliminations(2)		Citigroup parent company- issued long-term debt and stockholders’ equity(3)		Total Citigroup consolidated
Assets
Cash and deposits with banks, net of allowance	$	98,975	$	5,764	$	3,393	$	188,776	$	—	$	296,908
Securities borrowed and purchased under agreements to resell, net of allowance	336,768		30		305		—		—		337,103
Trading account assets	409,408		1,307		705		11,769		—		423,189
Investments, net of allowance	141,868		13		1,618		363,646		—		507,145
Loans, net of unearned income and allowance for credit losses on loans	275,323		331,717		36,076		—		—		643,116
Other assets, net of allowance	119,689		25,912		25,284		45,329		—		216,214
Net intersegment liquid assets(4)	382,785		108,050		25,031		(515,866)		—		—
Total assets	$	1,764,816	$	472,793	$	92,412	$	93,654	$	—	$	2,423,675
Liabilities and equity
Total deposits	$	818,244	$	426,791	$	52,981	$	21,851	$	—	$	1,319,867
Securities loaned and sold under agreements to repurchase	257,262		45		2,728		—		—		260,035
Trading account liabilities	169,183		476		254		751		—		170,664
Short-term borrowings	29,765		1		—		10,664		—		40,430
Long-term debt(3)	101,111		189		84		10,083		163,043		274,510
Other liabilities	98,710		11,417		23,679		14,941		—		148,747
Net intersegment funding (lending)(3)	290,541		33,874		12,686		34,661		(371,762)		—
Total liabilities	$	1,764,816	$	472,793	$	92,412	$	92,951	$	(208,719)	$	2,214,253
Total equity(5)	—		—		—		703		208,719		209,422
Total liabilities and equity	$	1,764,816	$	472,793	$	92,412	$	93,654	$	—	$	2,423,675

(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 27). Citigroup allocates stockholders’ equity and long-term debt to its businesses through intersegment allocations as shown above.

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

(5)Corporate/Other equity represents noncontrolling interests.

INSTITUTIONAL CLIENTS GROUP

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

ICG’s international presence is supported by trading floors in approximately 80 countries and a proprietary network in 95 countries and jurisdictions. As previously disclosed, as of March 31, 2023, Citi ended nearly all of the institutional banking services it offered in Russia, with the remaining services only those necessary to fulfill its remaining legal and regulatory obligations. 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 June 30, 2023, ICG had $1.8 trillion in assets and $818 billion in deposits. Securities services managed $23.7 trillion in assets under custody and administration at June 30, 2023, of which Citi provided both custody and administrative services to certain clients related to $2.2 trillion of such assets. Managed assets under trust were $4.1 trillion at June 30, 2023. For additional information on these operations, see “Administration and Other Fiduciary Fees” in Note 5.


	Second Quarter								Six Months
In millions of dollars, except as otherwise noted	2023			2022			% Change		2023			2022			% Change
Commissions and fees	$	1,126		$	1,125		—	%	$	2,276		$	2,255		1	%
Administration and other fiduciary fees	709			732			(3)		1,363			1,404			(3)
Investment banking fees(1)	686			990			(31)		1,520			2,029			(25)
Principal transactions	2,463			4,358			(43)		6,172			8,800			(30)
Other	(166)			(306)			46		(308)			(213)			(45)
Total non-interest revenue	$	4,818		$	6,899		(30)	%	$	11,023		$	14,275		(23)	%
Net interest income (including dividends)	5,623			4,520			24		10,651			8,304			28
Total revenues, net of interest expense	$	10,441		$	11,419		(9)	%	$	21,674		$	22,579		(4)	%
Total operating expenses	$	7,286		$	6,434		13	%	$	14,259		$	13,157		8	%
Net credit losses on loans	$	73		$	18		NM		$	95		$	48		98	%
Credit reserve build (release) for loans	(150)			(76)			(97)	%	(225)			520			NM
Provision (release) for credit losses on unfunded lending commitments	(88)			(169)			48		(258)			183			NM
Provisions (releases) for credit losses on HTM debt securities and other assets	223			25			NM		374			18			NM
Provisions (releases) for credit losses	$	58		$	(202)		NM		$	(14)		$	769		NM
Income from continuing operations before taxes	$	3,097		$	5,187		(40)	%	$	7,429		$	8,653		(14)	%
Income taxes	878			1,209			(27)		1,912			2,017			(5)
Income from continuing operations	$	2,219		$	3,978		(44)	%	$	5,517		$	6,636		(17)	%
Noncontrolling interests	29			17			71		69			35			97
Net income	$	2,190		$	3,961		(45)	%	$	5,448		$	6,601		(17)	%
Balance Sheet data (in billions of dollars)
EOP assets	$	1,765		$	1,700		4	%
Average assets	1,795			1,698			6		$	1,785		$	1,692		5	%
Efficiency ratio	70		%	56		%			66		%	58		%
Average loans by reporting unit (in billions of dollars)
Services	$	80		$	85		(6)	%	$	80		$	82		(2)	%
Banking	185			199			(7)		188			197			(5)
Markets	13			13			—		13			14			(7)
Total	$	278		$	297		(6)	%	$	281		$	293		(4)	%
Average deposits by reporting unit (in billions of dollars)
TTS	$	688		$	672		2	%	$	696		$	671		4	%
Securities services	125			137			(9)		125			136			(8)


Services	$	813	$	809	—	%	$	821	$	807	2	%
Markets and Banking	24		21		14		24		21		14
Total	$	837	$	830	1	%	$	845	$	828	2	%

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

NM Not meaningful

ICG Revenue Details


	Second Quarter						Six Months
In millions of dollars	2023		2022		% Change		2023		2022		% Change
Services
Net interest income	$	2,914	$	2,354	24	%	$	5,753	$	4,278	34	%
Non-interest revenue	1,741		1,696		3		3,369		3,237		4
Total Services revenues	$	4,655	$	4,050	15	%	$	9,122	$	7,515	21	%
Net interest income	$	2,425	$	2,053	18	%	$	4,783	$	3,729	28	%
Non-interest revenue	1,085		1,003		8		2,138		1,934		11
TTS revenues	$	3,510	$	3,056	15	%	$	6,921	$	5,663	22	%
Net interest income	$	489	$	301	62	%	$	970	$	549	77	%
Non-interest revenue	656		693		(5)		1,231		1,303		(6)
Securities services revenues	$	1,145	$	994	15	%	$	2,201	$	1,852	19	%
Markets
Net interest income	$	1,982	$	1,355	46	%	$	3,452	$	2,447	41	%
Non-interest revenue	2,637		3,937		(33)		6,768		8,654		(22)
Total Markets revenues(1)	$	4,619	$	5,292	(13)	%	$	10,220	$	11,101	(8)	%
Fixed income markets	$	3,529	$	4,078	(13)	%	$	7,983	$	8,367	(5)	%
Equity markets	1,090		1,214		(10)		2,237		2,734		(18)
Total Markets revenues	$	4,619	$	5,292	(13)	%	$	10,220	$	11,101	(8)	%
Rates and currencies	$	2,844	$	3,249	(12)	%	$	6,484	$	6,463	—	%
Spread products / other fixed income	685		829		(17)		1,499		1,904		(21)
Total Fixed income markets revenues	$	3,529	$	4,078	(13)	%	$	7,983	$	8,367	(5)	%
Banking
Net interest income	$	727	$	811	(10)	%	$	1,446	$	1,579	(8)	%
Non-interest revenue	440		1,266		(65)		886		2,384		(63)
Total Banking revenues	$	1,167	$	2,077	(44)	%	$	2,332	$	3,963	(41)	%
Investment banking
Advisory	$	162	$	357	(55)	%	$	451	$	704	(36)	%
Equity underwriting	162		177		(8)		271		362		(25)
Debt underwriting	288		271		6		664		767		(13)
Total Investment banking revenues	$	612	$	805	(24)	%	$	1,386	$	1,833	(24)	%
Corporate lending (excluding gains (losses) on loan hedges)(2)	$	621	$	778	(20)	%	$	1,211	$	1,467	(17)	%
Total Banking revenues (excluding gains (losses) on loan hedges)(2)	$	1,233	$	1,583	(22)	%	$	2,597	$	3,300	(21)	%
Gain (loss) on loan hedges(2)	(66)		494		NM		(265)		663		NM
Total Banking revenues (including gains (losses) on loan hedges)(2)	$	1,167	$	2,077	(44)	%	$	2,332	$	3,963	(41)	%
Total ICG revenues, net of interest expense	$	10,441	$	11,419	(9)	%	$	21,674	$	22,579	(4)	%

(1) Citi assesses its Markets business performance on a total revenue basis, as offsets may occur across revenue line items. For example, securities that generate Net interest income may be risk managed with derivatives that are recorded in Principal transactions revenue within Non-interest revenue. For a description of the composition of these revenue line items, see Notes 4, 5 and 6.

(2) Credit derivatives are used to economically hedge a portion of the corporate loan portfolio that includes both accrual loans and loans at fair value. Gain (loss) on loan hedges include the mark-to-market on the credit derivatives and the mark-to-market on the loans in the portfolio that are at fair value. The fixed premium

costs of these hedges are netted against the corporate lending revenues to reflect the cost of credit protection. Citigroup’s results of operations excluding the impact of gain (loss) on loan hedges are non-GAAP financial measures.

NM Not meaningful

The discussion of the results of operations for ICG below excludes (where noted) the impact of any gain (loss) on hedges of accrual loans, which are non-GAAP financial measures. For a reconciliation of these metrics to the reported results, see the table above.

2Q23 vs. 2Q22

Net income of $2.2 billion decreased 45%, primarily driven by lower revenues, higher expenses and higher cost of credit.

Revenues decreased 9% (including gain (loss) on loan hedges), driven by lower Banking and Markets revenues, partially offset by higher Services revenues. Banking revenues were down 44% (including the impact of the gain (loss) on loan hedges), reflecting lower revenues in both Investment banking and Corporate lending. Markets revenues were down 13%, driven by lower revenues in both Fixed income markets and Equity markets, due to lower client activity, driven by decreased volatility and a strong prior-year comparison. Services revenues were up 15%, driven by higher revenues in both TTS and Securities services.

Citi expects that revenues in its Markets and Investment banking businesses will continue to reflect the overall market environment during the remainder of 2023.

Within Services:

•TTS revenues increased 15%, driven by 18% growth in net interest income and 8% 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 as well as growth in deposits, partially offset by higher interest rates paid on deposits. Average deposits increased 2%, largely driven by growth in EMEA and Latin America. Average loans decreased 6%, reflecting business actions taken to reduce RWA. The increase in non-interest revenue was primarily driven by strong fee growth in the cash business, reflecting solid client engagement and continued growth of underlying drivers, reflecting higher cross-border flows (up 11%) and commercial card spend (up 15%).

•Securities services revenues increased 15%, as net interest income grew 63%, driven by higher interest rates across currencies and cost of funds management, partially offset by the impact of an 8% decline in average deposits. Non-interest revenues decreased 5%, primarily driven by custody fee spread compression, partially offset by higher assets under custody and administration and continued elevated levels of corporate activity in Issuer services.

Within Markets:

•Fixed income markets revenues decreased 13%, driven by North America, EMEA and Asia, largely due to decreased institutional and corporate client activity.

Rates and currencies decreased 12%, largely due to a decline in the currencies business, driven by EMEA, primarily reflecting lower volatility and a strong prior-year comparison, partially offset by a modest increase in the rates business. Spread products and other fixed income revenues decreased 17%, due to a decline across

regions in commodities, driven by lower corporate and institutional client activity, as well as a decline in the financing and securitization business, as the business further reduced its subscription credit facilities portfolio.

•Equity markets revenues decreased 10%, driven by North America and Asia. The decline primarily reflected lower equity derivatives revenues, driven by a more challenging macroeconomic environment, lower volatility and a strong prior-year comparison. The decline in equity derivatives revenues was partially offset by an increase in equity cash, reflecting a modest increase in institutional client activity. Prime finance revenues were largely unchanged, while prime finance balances continued to grow in the quarter.

Within Banking:

•Investment banking revenues declined 24%, reflecting a decline in the overall market wallet, as ongoing macroeconomic and geopolitical uncertainty continued to adversely impact client activity. Advisory revenues decreased 55%, 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 as well as lower wallet share. Equity underwriting revenues decreased 8%, reflecting a decline in North America, Asia and EMEA, driven by lower wallet share, partially offset by growth in the market wallet. Debt underwriting revenues increased 6%, reflecting growth in North America and EMEA, driven by wallet share gains, largely in the investment-grade portfolio, partially offset by the decline in the market wallet.

•Corporate lending revenues decreased 56%, including the impact of gains (losses) on loan hedges. Excluding the impact of gains (losses) on loan hedges, revenues decreased 20%, primarily driven by the impacts of foreign currency translation and lower lending volumes.

Expenses increased 13%, primarily driven by continued investment in TTS, risk and controls investments and severance costs in Markets and Investment banking, partially offset by productivity savings.

Provisions reflected a cost of $58 million, compared to a benefit of $202 million in the prior-year period, largely driven by an ACL build for other assets and higher net credit losses. Net credit losses were $73 million, compared to $18 million in the prior-year period.

The ACL release was $15 million, compared to a release of $220 million in the prior-year period. The $15 million ACL release was driven by a net ACL release for loans and unfunded lending commitments of $238 million, primarily due to an improved macroeconomic outlook, partially offset by a $223 million build for other assets, primarily related to an increase in transfer risk associated with exposures outside the

U.S. driven by safety and soundness considerations under U.S. banking law. For additional information on Citi’s ACL, see “Significant Accounting Policies and Significant Estimates” below.

For additional information on 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.

2Q23 YTD vs. 2Q22 YTD

Net income of $5.4 billion decreased 17%, primarily driven by lower revenues and higher expenses, partially offset by lower cost of credit.

Revenues decreased 4% (including gain (loss) on loan hedges), driven by lower Banking and Markets revenues, partially offset by higher Services revenues. Banking revenues were down 41% (including the impact of the gain (loss) on loan hedges), reflecting lower revenues in both Investment banking and Corporate lending. Markets revenues were down 8%, driven by lower revenues in both Equity markets and Fixed income markets, also reflecting lower client activity, driven by decreased volatility and a strong prior-year comparison. Services revenues were up 21%, driven by higher revenues in both TTS and Securities services.

Within Services:

•TTS revenues increased 22%, with growth in net interest income of 28% and non-interest revenue of 11%, driven by the same factors described above.

•Securities services revenues increased 19%, reflecting higher net interest income, driven by the same factors described above. Non-interest revenue declined 6%, as a decrease in revenues in the custody business was partially offset by an increase in Issuer services.

Within Markets:

•Fixed income markets revenues decreased 5%, primarily due to EMEA, reflecting a decline in spread products and other fixed income, driven by the same factors described above, as rates and currencies revenues were largely unchanged.

•Equity markets revenues decreased 18%, primarily due to a decline in equity derivatives, driven by the same factors as described above, as well as a modest decline in equity cash. Prime finance balances continued to grow year to date.

Within Banking:

•Investment banking revenues decreased 24%. Advisory revenues decreased 36% and equity underwriting revenues decreased 25%, driven by the same factors described above. Debt underwriting revenues decreased 13%, largely driven by the lower market wallet.

•Corporate lending revenues decreased 56%, including the impact of gains (losses) on loan hedges. Excluding the impact of gains (losses) on loan hedges, revenues decreased 17%, driven by the same factors described above.

Expenses increased 8%, primarily driven by continued investment in Citi’s transformation, investments in TTS, other risk and controls investments, volume-related expenses and other structural expenses, including severance costs, partially offset by productivity savings and foreign exchange translation.

Provisions reflected a benefit of $14 million, compared to a cost of $769 million in the prior-year period, largely driven by a net ACL release for loans and unfunded lending commitments, compared to an ACL build in the prior-year period. Net credit losses were $95 million, compared to $48 million in the prior-year period.

The ACL release was $109 million, compared to a build of $721 million in the prior-year period, driven by a net ACL release for loans and unfunded lending commitments of $483 million, due to an improved macroeconomic outlook and Russia loan reductions, partially offset by a $374 million build for other assets, primarily related to an increase in transfer risk associated with exposures outside the U.S. driven by safety and soundness considerations under U.S. banking law.

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 proprietary card portfolios (Cash, Rewards and Value) and co-branded cards (including Costco and American Airlines) within Branded cards, and co-brand and private label relationships within Retail services (including, among others, The Home Depot, Best Buy, 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 June 30, 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 $153 billion in outstanding credit card balances, $112 billion in deposits, $38 billion in mortgages and $4 billion in personal and small business loans. Global Wealth had $315 billion in deposits, $87 billion in mortgage loans, $59 billion in personal and small business loans and $5 billion in outstanding credit card balances.


	Second Quarter								Six Months
In millions of dollars, except as otherwise noted	2023			2022			% Change		2023			2022			% Change
Net interest income	$	5,963		$	5,569		7	%	$	11,897		$	10,954		9	%
Non-interest revenue	432			460			(6)		946			980			(3)
Total revenues, net of interest expense	$	6,395		$	6,029		6	%	$	12,843		$	11,934		8	%
Total operating expenses	$	4,204		$	3,985		5	%	$	8,458		$	7,874		7	%
Net credit losses on loans	$	1,241		$	699		78	%	$	2,335		$	1,390		68	%
Credit reserve build (release) for loans	333			638			(48)		840			(424)			NM
Provision (release) for credit losses on unfunded lending commitments	2			13			(85)		(4)			11			NM
Provisions for benefits and claims (PBC), and other assets	3			5			(40)		(1)			2			NM
Provisions (releases) for credit losses and PBC	$	1,579		$	1,355		17	%	$	3,170		$	979		NM
Income from continuing operations before taxes	$	612		$	689		(11)	%	$	1,215		$	3,081		(61)	%
Income taxes	118			136			(13)		232			668			(65)
Income from continuing operations	$	494		$	553		(11)	%	$	983		$	2,413		(59)	%
Noncontrolling interests	—			—			—		—			—			—
Net income	$	494		$	553		(11)	%	$	983		$	2,413		(59)	%
Balance Sheet data (in billions of dollars)
EOP assets	$	473		$	479		(1)	%
Average assets	484			474			2		$	490		$	474		3	%
Average loans	339			317			7		336			315			7
Average deposits	431			435			(1)		433			441			(2)
Efficiency ratio	66		%	66		%			66		%	66		%
Net credit losses as a percentage of average loans	1.47			0.88					1.40			0.89
Revenue by reporting unit and component
Branded cards	$	2,352		$	2,168		8	%	$	4,818		$	4,258		13	%
Retail services	1,646			1,300			27		3,259			2,599			25
Retail banking	594			656			(9)		1,207			1,251			(4)
U.S. Personal Banking	$	4,592		$	4,124		11	%	$	9,284		$	8,108		15	%
Private bank	$	605		$	745		(19)	%	$	1,172		$	1,524		(23)	%
Wealth at Work	224			170			32		417			353			18
Citigold	974			990			(2)		1,970			1,949			1
Global Wealth	$	1,803		$	1,905		(5)	%	$	3,559		$	3,826		(7)	%
Total	$	6,395		$	6,029		6	%	$	12,843		$	11,934		8	%

NM Not meaningful

2Q23 vs. 2Q22

Net income was $494 million, compared to $553 million in the prior-year period, driven by higher cost of credit and higher expenses, partially offset by higher revenues.

Revenues increased 6%, 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 11%, reflecting higher revenues in cards, partially offset by lower revenues in Retail banking.

Cards revenues increased 15%. Branded cards revenues increased 8%, primarily driven by higher net interest income, reflecting strength in underlying drivers. Branded cards new account acquisitions increased 6% and card spend volumes increased 4%. Average loans increased 14%, reflecting the higher card spend volumes and lower payment rates.

Retail services revenues increased 27%, primarily driven by higher net interest income on higher loan balances and lower partner payments. Retail services card spend volumes decreased 5%, primarily driven by lower discretionary retail spend. Average loans increased 9%, reflecting lower payment rates, partially offset by the lower card spend volumes.

Retail banking revenues decreased 9%, primarily driven by the impact of the transfer of certain relationships and the associated deposit balances to Global Wealth. Average loans increased 17%, primarily driven by higher mortgage originations. Average deposits decreased 3%, largely reflecting the transfer of certain relationships and the associated deposit balances to Global Wealth.

Global Wealth revenues decreased 5%, largely reflecting investment product revenue headwinds and lower net interest income, partially offset by the benefits of the transfer of certain relationships and the associated deposit balances from Retail banking. Average deposits and average loans were largely unchanged. Client assets increased 5%, primarily driven by increases in market valuations. Client advisors decreased 1%, reflecting the re-pacing of strategic hiring. Private bank revenues decreased 19%, driven by the investment product revenue headwinds and higher interest rates paid on deposits. Wealth at Work revenues increased 32%, driven by strong lending results, primarily in mortgages, and Citigold revenues decreased 2%, driven by the lower net interest income and the lower investment product revenue.

Expenses increased 5%, largely driven by risk and controls investments, partially offset by productivity savings.

Provisions were $1.6 billion, compared to $1.4 billion in the prior-year period, largely driven by higher net credit losses, partially offset by a lower net ACL build for loans. Net credit losses increased 78%, reflecting ongoing normalization in U.S. cards from near historically low levels, with Branded cards net credit losses up 87% to $614 million and Retail services net credit losses up 88% to $545 million. Both Branded cards and Retail services net credit losses are expected to normalize by the end of 2023.

The net ACL build was $0.3 billion, compared to $0.7 billion in the prior-year period, primarily reflecting growth in U.S. cards 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.

2Q23 YTD vs. 2Q22 YTD

Year-to-date, PBWM experienced similar trends to those described above. Net income was $983 million, compared to $2.4 billion in the prior-year period, largely driven by higher cost of credit and higher expenses, partially offset by higher revenues.

Revenues increased 8%, largely due to higher revenues in U.S. Personal Banking. U.S. Personal Banking revenues increased 15%, reflecting higher revenues in cards, largely driven by the same factors described above. Global Wealth revenues decreased 7%, largely driven by the same factors described above.

Expenses increased 7%, primarily driven by continued investments in Citi’s transformation, other risk and controls investments and severance costs, partially offset by productivity savings.

Provisions were $3.2 billion, compared to $1.0 billion in the prior-year period, due to a net ACL build for loans, as well as higher net credit losses, primarily driven by ongoing normalization in U.S. cards.

The net ACL build was $0.8 billion, primarily driven by U.S. cards loan growth, compared to a release of $0.4 billion in the prior-year period.

LEGACY FRANCHISES

As of June 30, 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 May 2023, Citi announced it intends to pursue an IPO of consumer, small business and middle-market banking operations in Mexico. Citi will retain its ICG and Private bank businesses in Mexico. Citi currently expects that the separation of the businesses will be completed in the second half of 2024 and that the IPO will take place in 2025.

In connection with Citi’s wind-down of its consumer and local commercial banking businesses in Russia, Citi expects to incur approximately $140 million in total estimated charges (excluding the impact from any portfolio sales) related to Legacy Franchises. Citi’s previously disclosed referral agreement with a Russian bank to settle a portfolio of ruble-denominated credit card loans, subject to customer consents, was signed in May 2023. The outstanding card loan balances with Citi ($131 million as of June 30, 2023) are to be settled upon referral and refinancing, and the portfolio has not been designated as held-for-sale (HFS). For additional information about Citi’s continued efforts to reduce its operations and exposures 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 June 30, 2023, on a combined basis, Legacy Franchises had 1,413 retail branches, $21 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 $8 billion of loans ($7 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 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.


	Second Quarter						Six Months				% Change
In millions of dollars, except as otherwise noted	2023		2022		% Change		2023		2022
Net interest income	$	1,345	$	1,474	(9)	%	$	2,635	$	2,982	(12)	%
Non-interest revenue	578		461		25		2,140		884		NM
Total revenues, net of interest expense	$	1,923	$	1,935	(1)	%	$	4,775	$	3,866	24	%
Total operating expenses	$	1,778	$	1,814	(2)	%	$	3,530	$	4,107	(14)	%
Net credit losses on loans	$	190	$	133	43	%	$	376	$	284	32	%
Credit reserve build (release) for loans	74		(28)		NM		77		(174)		NM
Provision (release) for credit losses on unfunded lending commitments	(10)		(3)		NM		(28)		121		NM
Provisions for benefits and claims (PBC), HTM debt securities and other assets	46		19		NM		220		50		NM
Provisions (releases) for credit losses and PBC	$	300	$	121	NM		$	645	$	281	NM
Income (loss) from continuing operations before taxes	$	(155)	$	—	—	%	$	600	$	(522)	NM
Income taxes	(33)		15		NM		116		(122)		NM
Income (loss) from continuing operations	$	(122)	$	(15)	NM		$	484	$	(400)	NM
Noncontrolling interests	3		2		50	%	5		—		—	%
Net income (loss)	$	(125)	$	(17)	NM		$	479	$	(400)	NM
Balance Sheet data (in billions of dollars)
EOP assets	$	92	$	108	(15)	%
Average assets	92		115		(20)		$	95	$	120	(21)	%
EOP loans	38		41		(7)
EOP deposits	53		53		1


Efficiency ratio	92		%	94		%			74		%	106		%
Revenue by reporting unit and component
Asia Consumer	$	454		$	880		(48)	%	$	1,963		$	1,667		18	%
Mexico Consumer/SBMM	1,449			1,184			22		2,771			2,323			19
Legacy Holdings Assets	20			(129)			NM		41			(124)			NM
Total	$	1,923		$	1,935		(1)	%	$	4,775		$	3,866		24	%

NM Not meaningful

2Q23 vs. 2Q22

Net loss was $125 million, compared to a net loss of $17 million in the prior-year period, driven by higher cost of credit, partially offset by lower expenses.

Results for the second quarter of 2023 included divestiture-related impacts of $(73) million in earnings before taxes ($(52) million after-tax), reflecting the following:

•$(6) million of aggregate divestiture-related revenue impacts

•$79 million of aggregate divestiture-related expenses, largely relating to separation costs in Mexico and severance costs in the Asia exit markets

•$(12) million benefit of divestiture-related credit costs

•$(21) million of related tax benefits

Results for the second quarter of 2022 included divestiture-related impacts of $48 million ($35 million after-tax), reflecting the following:

•$78 million of aggregate divestiture-related revenue impacts, including a $20 million reduction of the loss on sale for the Australia consumer business

•$(28) million benefit recorded in expenses related to the Korea Voluntary Early Retirement Program (VERP) pension settlement

•$58 million of divestiture-related credit costs

•$13 million of related taxes

Revenues decreased 1%, driven by lower revenues in Asia Consumer, partially offset by higher revenues in Mexico Consumer/SBMM and Legacy Holdings Assets.

Asia Consumer revenues of $454 million decreased from $880 million in the prior-year period, mainly driven by the reduction from exited markets and continued wind-downs.

Mexico Consumer/SBMM revenues increased 22%, as cards revenues increased 38%, SBMM revenues increased 25% and retail banking revenues increased 16%, primarily due to higher interest rates and higher lending volumes.

Legacy Holdings Assets revenues of $20 million increased from $(129) million in the prior-year period, largely driven by a release of a CTA loss (net of hedges) recorded in AOCI in the second quarter of 2022.

Expenses decreased 2%, mainly driven by the impact of the exited markets and continued wind-downs.

Provisions were $300 million, compared to $121 million in the prior-year period, primarily driven by higher net credit losses and a net ACL build. Net credit losses increased 43% to $190 million, driven by higher lending volumes in Mexico Consumer. The build for credit losses was $110 million,

compared to a release of $12 million in the prior-year period, primarily due to 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.

2Q23 YTD vs. 2Q22 YTD

Net income was $479 million, compared to a net loss of $400 million in the prior-year period, driven by higher revenues and lower expenses, partially offset by higher cost of credit.

Results for year-to-date 2023 included divestiture-related impacts of approximately $880 million (approximately $596 million after-tax), reflecting the following:

•$1,012 million of net divestiture gains, primarily related to a gain on sale of the India consumer banking business, recorded in other revenue

•$152 million of aggregate divestiture-related expenses

•$(20) million benefit of divestiture-related credit costs

•$284 million of related taxes

Results for year-to-date 2022 included divestiture-related impacts of approximately $(629) million (approximately $(553) million after-tax), primarily reflecting the following:

•$(98) million pretax loss primarily reflecting an ACL release of $(104) million related to the Australia consumer banking business sale

•$129 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

•$535 million goodwill impairment, recorded in expenses, due to the re-segmentation and sequencing of divestitures

•$(76) million of related tax benefits

Revenues increased 24%, driven by higher revenues in Asia Consumer, Mexico Consumer/SBMM and Legacy Holdings Assets.

Asia Consumer revenues increased 18%, primarily driven by the India gain on sale, partially offset by the reduction from exited markets and wind-downs. Mexico Consumer/SBMM revenues increased 19%, mainly due to the benefit of FX translation as well as higher interest rates and higher lending volumes. Legacy Holdings Assets revenues of $41 million increased from $(124) million in the prior-year period, primarily driven by the release of the CTA loss (net of hedges) recorded in AOCI in the second quarter of 2022.

Expenses decreased 14%, mainly 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 $645 million, compared to $281 million in the prior-year period, driven by higher lending volumes and net credit losses in Mexico Consumer, and a build for transfer risk associated with exposures outside the U.S., driven by safety and soundness considerations under U.S. banking law.

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 June 30, 2023, Corporate/Other had $94 billion in assets, including Corporate Treasury investment securities and the Company’s deferred tax assets (DTAs).


	Second Quarter						Six Months				% Change
In millions of dollars	2023		2022		% Change		2023		2022
Net interest income	$	969	$	401	NM		$	2,065	$	595	NM
Non-interest revenue	(292)		(146)		(100)	%	(474)		(150)		NM
Total revenues, net of interest expense	$	677	$	255	NM		$	1,591	$	445	NM
Total operating expenses	$	302	$	160	89	%	$	612	$	420	46	%
Provisions for HTM debt securities and other assets	$	(113)	$	—	—	%	$	(2)	$	—	—	%
Income (loss) from continuing operations before taxes	$	488	$	95	NM		$	981	$	25	NM
Income taxes (benefits)	127		(178)		NM		361		(440)		NM
Income from continuing operations	$	361	$	273	32	%	$	620	$	465	33	%
Income (loss) from discontinued operations, net of taxes	(1)		(221)		100		(2)		(223)		99
Net income before attribution to noncontrolling interests	$	360	$	52	NM		$	618	$	242	NM
Noncontrolling interests	4		2		NM		7		3		NM
Net income	$	356	$	50	NM		$	611	$	239	NM

NM Not meaningful

2Q23 vs. 2Q22

Net income was $356 million, compared to $50 million in the prior-year period. The increase in net income was primarily driven by higher revenues, benefits from cost of credit and the prior-year release of a CTA loss (net of hedges) from AOCI (for additional information, see Note 2). These increases were partially offset by higher expenses and lower income tax benefits. Results for the quarter also included a $40 million withholding tax related to an exit market, which is a divestiture-related impact.

Revenues were $677 million, compared to $255 million in the prior-year period, primarily driven by higher net interest income from Deposits with banks and the investment portfolio, largely due to higher interest rates.

Expenses were $302 million, compared to $160 million in the prior-year period, primarily reflecting the impact of inflation, higher severance costs and the absence of certain settlements that occurred in the prior-year period, partially offset by lower consulting expenses.

Provisions were a $113 million benefit, primarily driven by a reserve release related to the repayment of the First Republic Bank deposit.

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.

2Q23 YTD vs. 2Q22 YTD

Year-to-date, Corporate/Other experienced similar trends to those described above. Net income was $611 million, compared to net income of $239 million in the prior-year period, largely driven by the same factors described above.

Revenues were $1.6 billion, compared to $445 million in the prior-year period, driven by the same factors described above.

Expenses were $612 million, compared to $420 million in the prior-year period, driven by the same factors described above.

Provisions were a $2 million benefit, as the reserve build for the First Republic Bank deposit in the first quarter of 2023 was released in the second quarter of 2023.

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 second quarter of 2023, Citi returned a total of $2.0 billion of capital to common shareholders in the form of $1.0 billion in dividends and $1.0 billion in share repurchases totaling approximately 21 million common shares. For additional information, see “Unregistered Sales of Equity Securities, Repurchases of Equity Securities and Dividends” below.

Citi paid common dividends of $0.51 per share for the second quarter of 2023, and on July 20, 2023, declared common dividends of $0.53 per share for the third quarter of 2023. Citi intends to maintain a quarterly common dividend of at least $0.53 per share, subject to financial and macroeconomic conditions as well as its Board of Directors’ approval. In addition, as previously announced, Citi will continue to assess common share repurchases on a quarter-by-quarter basis given uncertainty regarding regulatory capital requirements. For additional information, see “Capital Resources—Regulatory Capital Standards and Developments” 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 June 30, 2023, largely unchanged from March 31, 2023, relative to a required regulatory CET1 Capital ratio of 12.0% as of such dates 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 12.5% as of June 30, 2023, compared to 12.3% as of March 31, 2023, relative to a required regulatory CET1 Capital ratio of 10.5% as of such dates 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.

Citi’s CET1 Capital ratio under the Standardized Approach remained largely unchanged from March 31, 2023, as the return of capital to common shareholders and an increase in RWA were offset by net income. Citi’s CET1 Capital ratio increased under the Advanced Approaches from March 31, 2023, driven primarily by net income and a decrease in RWA, partially offset by the return of capital to common shareholders.

Citi’s CET1 Capital ratio increased under both the Standardized Approach and Advanced Approaches from year-end 2022, driven primarily by year-to-date net income of $7.5 billion, partially offset by the return of capital to common shareholders and an increase in RWA.

Stress Capital Buffer

In July 2023, the FRB confirmed Citi’s Stress Capital Buffer (SCB) requirement of 4.3%, as compared to the current requirement of 4.0%, for the four-quarter window starting from October 1, 2023 to September 30, 2024.

Accordingly, effective October 1, 2023, Citi will be required to maintain a 12.3% CET1 Capital ratio under the Standardized Approach, incorporating the 4.3% 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) will remain unchanged at 10.5%. The SCB applies to Citigroup only; the regulatory capital framework applicable to Citibank, including the Capital Conservation Buffer, is unaffected by Citigroup’s SCB.

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

Citigroup’s Capital Resources

The following table presents Citi’s required risk-based capital ratios as of June 30, 2023, March 31, 2023 and December 31, 2022:


	Advanced Approaches						Standardized Approach
	June 30, 2023		March 31, 2023		December 31, 2022		June 30, 2023		March 31, 2023		December 31, 2022
CET1 Capital ratio(1)	10.5	%	10.5	%	10.0	%	12.0	%	12.0	%	11.5	%
Tier 1 Capital ratio(1)	12.0		12.0		11.5		13.5		13.5		13.0
Total Capital ratio(1)	14.0		14.0		13.5		15.5		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). These requirements are applicable through September 30, 2023. See “Stress Capital Buffer” above for more information.

The following tables present Citi’s capital components and ratios as of June 30, 2023, March 31, 2023 and December 31, 2022:


	Advanced Approaches									Standardized Approach
In millions of dollars, except ratios	June 30, 2023			March 31, 2023			December 31, 2022			June 30, 2023			March 31, 2023			December 31, 2022
CET1 Capital(1)	$	154,243		$	153,753		$	148,930		$	154,243		$	153,753		$	148,930
Tier 1 Capital(1)	175,743			175,249			169,145			175,743			175,249			169,145
Total Capital (Tier 1 Capital + Tier 2 Capital)(1)	198,036			194,998			188,839			206,852			203,586			197,543
Total Risk-Weighted Assets	1,234,271			1,252,390			1,221,538			1,153,450			1,144,359			1,142,985
Credit Risk(1)	$	874,707		$	883,746		$	851,875		$	1,090,440		$	1,072,110		$	1,069,992
Market Risk	62,261			71,341			71,889			63,010			72,249			72,993
Operational Risk	297,303			297,303			297,774			—			—			—
CET1 Capital ratio(2)	12.50		%	12.28		%	12.19		%	13.37		%	13.44		%	13.03		%
Tier 1 Capital ratio(2)	14.24			13.99			13.85			15.24			15.31			14.80
Total Capital ratio(2)	16.04			15.57			15.46			17.93			17.79			17.28


In millions of dollars, except ratios	Required Capital Ratios		June 30, 2023			March 31, 2023			December 31, 2022
Quarterly Adjusted Average Total Assets(1)(3)			$	2,429,306		$	2,426,430		$	2,395,863
Total Leverage Exposure(1)(4)			2,943,546			2,939,744			2,906,773
Leverage ratio	4.0	%	7.23		%	7.22		%	7.06		%
Supplementary Leverage ratio	5.0		5.97			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 June 30, 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 June 30, 2023.

Components of Citigroup Capital


In millions of dollars	June 30, 2023		December 31, 2022
CET1 Capital
Citigroup common stockholders’ equity(1)	$	188,610	$	182,325
Add: Qualifying noncontrolling interests	209		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	(1,990)		(2,522)
Less: Cumulative unrealized net gain (loss) related to changes in fair value of financial liabilities attributable to own creditworthiness, net of tax	307		1,441
Less: Intangible assets:
Goodwill, net of related DTLs(3)	18,933		19,007
Identifiable intangible assets other than MSRs, net of related DTLs	3,531		3,411
Less: Defined benefit pension plan net assets; other	2,020		1,935
Less: DTAs arising from net operating loss, foreign tax credit and general business credit carry-forwards(4)	11,461		12,197
Less: Excess over 10%/15% limitations for other DTAs, certain common stock investments, and MSRs(4)(5)	1,828		325
Total CET1 Capital (Standardized Approach and Advanced Approaches)	$	154,243	$	148,930
Additional Tier 1 Capital
Qualifying noncumulative perpetual preferred stock(1)	$	20,109	$	18,864
Qualifying trust preferred securities(6)	1,410		1,406
Qualifying noncontrolling interests	30		30
Regulatory capital deductions:
Less: Other	49		85
Total Additional Tier 1 Capital (Standardized Approach and Advanced Approaches)	$	21,500	$	20,215
Total Tier 1 Capital (CET1 Capital + Additional Tier 1 Capital) (Standardized Approach and Advanced Approaches)	$	175,743	$	169,145
Tier 2 Capital
Qualifying subordinated debt	$	17,669	$	15,530
Qualifying noncontrolling interests	37		37
Eligible allowance for credit losses(2)(7)	13,715		13,426
Regulatory capital deduction:
Less: Other	312		595
Total Tier 2 Capital (Standardized Approach)	$	31,109	$	28,398
Total Capital (Tier 1 Capital + Tier 2 Capital) (Standardized Approach)	$	206,852	$	197,543
Adjustment for excess of eligible credit reserves over expected credit losses(2)(7)	$	(8,816)	$	(8,704)
Total Tier 2 Capital (Advanced Approaches)	$	22,293	$	19,694
Total Capital (Tier 1 Capital + Tier 2 Capital) (Advanced Approaches)	$	198,036	$	188,839

(1)Issuance costs of $136 million and $131 million related to outstanding noncumulative perpetual preferred stock at June 30, 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 $28.5 billion of net DTAs at June 30, 2023, $11.5 billion of net DTAs arising from net operating loss, foreign tax credit and general business credit tax carry-forwards, as well as $1.8 billion of DTAs arising from temporary differences that exceeded 10%/15% limitations, were excluded from Citi’s CET1 Capital as of June 30, 2023. DTAs arising from net operating loss, foreign tax credit and general business credit tax carry-forwards are required to be entirely deducted from CET1 Capital under the U.S. Basel III rules. DTAs arising from temporary differences are required to be deducted from capital only if they exceed 10%/15% limitations under the U.S. Basel III rules.

Footnotes continue on the following page.

(5)Assets subject to 10%/15% limitations include MSRs, DTAs arising from temporary differences and significant common stock investments in unconsolidated financial institutions. At June 30, 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 June 30, 2023 and December 31, 2022, respectively.

Citigroup Capital Rollforward


In millions of dollars	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
CET1 Capital, beginning of period	$	153,753	$	148,930
Net income	2,915		7,521
Common and preferred dividends declared	(1,292)		(2,569)
Net increase in treasury stock	(985)		(280)
Net increase in common stock and additional paid-in capital	210		126
Net change in CTA net of hedges, net of tax	23		865
Net change in unrealized gains (losses) on debt securities AFS, net of tax	126		962
Net increase in defined benefit plans liability adjustment, net of tax	(136)		(240)
Net change in adjustment related to change in fair value of financial liabilities attributable to own creditworthiness, net of tax	111		189
Net decrease in excluded component of fair value hedges	11		23
Net change in goodwill, net of related DTLs	(89)		74
Net change in identifiable intangible assets other than MSRs, net of related DTLs	76		(120)
Net increase in defined benefit pension plan net assets	(66)		(59)
Net decrease in DTAs arising from net operating loss, foreign tax credit and general business credit carry-forwards	322		736
Net increase in excess over 10%/15% limitations for other DTAs, certain common stock investments and MSRs	(783)		(1,503)
Net decrease in CECL transition provision	—		(757)
Other	47		345
Net increase in CET1 Capital	$	490	$	5,313
CET1 Capital, end of period (Standardized Approach and Advanced Approaches)	$	154,243	$	154,243
Additional Tier 1 Capital, beginning of period	$	21,496	$	20,215
Net increase in qualifying perpetual preferred stock	—		1,245
Net increase in qualifying trust preferred securities	2		4
Other	2		36
Net increase in Additional Tier 1 Capital	$	4	$	1,285
Tier 1 Capital, end of period (Standardized Approach and Advanced Approaches)	$	175,743	$	175,743
Tier 2 Capital, beginning of period (Standardized Approach)	$	28,337	$	28,398
Net increase in qualifying subordinated debt	2,489		2,139
Net increase in eligible allowance for credit losses	239		289
Other	44		283
Net increase in Tier 2 Capital (Standardized Approach)	$	2,772	$	2,711
Tier 2 Capital, end of period (Standardized Approach)	$	31,109	$	31,109
Total Capital, end of period (Standardized Approach)	$	206,852	$	206,852
Tier 2 Capital, beginning of period (Advanced Approaches)	$	19,749	$	19,694
Net increase in qualifying subordinated debt	2,489		2,139
Net increase in excess of eligible credit reserves over expected credit losses	11		177
Other	44		283
Net increase in Tier 2 Capital (Advanced Approaches)	$	2,544	$	2,599
Tier 2 Capital, end of period (Advanced Approaches)	$	22,293	$	22,293
Total Capital, end of period (Advanced Approaches)	$	198,036	$	198,036

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


In millions of dollars	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Total Risk-Weighted Assets, beginning of period	$	1,144,359	$	1,142,985
Changes in Credit Risk-Weighted Assets
General credit risk exposures(1)	4,990		(9,362)
Derivatives(2)	10,313		11,470
Repo-style transactions(3)	1,119		12,044
Securitization exposures	(364)		92
Equity exposures(4)	589		2,377
Other exposures(5)	1,683		3,827
Net increase in Credit Risk-Weighted Assets	$	18,330	$	20,448
Changes in Market Risk-Weighted Assets
Risk levels	$	(6,795)	$	(8,876)
Model and methodology updates	(2,444)		(1,107)
Net decrease in Market Risk-Weighted Assets(6)	$	(9,239)	$	(9,983)
Total Risk-Weighted Assets, end of period	$	1,153,450	$	1,153,450

(1)General credit risk exposures include cash and balances due from depository institutions, securities, and loans and leases. General credit risk exposures increased during the three months ended June 30, 2023, primarily due to an increase in card activities. General credit risk exposures decreased during the six months ended June 30, 2023, primarily driven by divestitures and non-strategic portfolio exits.

(2)Derivative exposures increased during the three and six months ended June 30, 2023, mainly driven by movements across multiple business areas, notably in rates and currencies.

(3)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 and six months ended June 30, 2023, mainly due to increased activities across multiple business areas.

(4)Equity exposures increased during the three and six months ended June 30, 2023, primarily due to increases in investment market share prices.

(5)Other exposures increased during the three and six months ended June 30, 2023, mainly driven by increases in other assets.

(6)Market risk-weighted assets decreased during the three and six months ended June 30, 2023, primarily due to exposure changes, partially offset by changes in model inputs related to volatility and correlation between market risk factors.

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


In millions of dollars	Three Months Ended June 30, 2023		Six Months Ended June 30, 2023
Total Risk-Weighted Assets, beginning of period	$	1,252,390	$	1,221,538
Changes in Credit Risk-Weighted Assets
General credit risk exposures(1)	(4,478)		13,130
Derivatives(2)	(8,382)		(3,366)
Repo-style transactions(3)	2,201		3,498
Securitization exposures	(1,561)		532
Equity exposures(4)	417		2,828
Other exposures(5)	2,764		6,210
Net increase in Credit Risk-Weighted Assets	$	(9,039)	$	22,832
Changes in Market Risk-Weighted Assets
Risk levels	$	(6,636)	$	(8,521)
Model and methodology updates	(2,444)		(1,107)
Net decrease in Market Risk-Weighted Assets(6)	$	(9,080)	$	(9,628)
Net decrease in Operational Risk-Weighted Assets	$	—	$	(471)
Total Risk-Weighted Assets, end of period	$	1,234,271	$	1,234,271

(1)General credit risk exposures decreased during the three months ended June 30, 2023, mainly driven by loans, partly offset by an increase in card activities. General credit risk exposures increased during the six months ended June 30, 2023, primarily driven by card activities.

(2)Derivative exposures decreased during the three and six months ended June 30, 2023, mainly driven by changes in CVA.

(3)Repo-style transactions increased during the three and six months ended June 30, 2023, mainly due to increased activities across multiple business areas.

(4)Equity exposures increased during the three and six months ended June 30, 2023, primarily due to increases in investment market share prices.

(5)Other exposures increased during the three and six months ended June 30, 2023, mainly driven by increases in other assets.

Supplementary Leverage Ratio

The following table presents Citi’s Supplementary Leverage ratio and related components as of June 30, 2023, March 31, 2023 and December 31, 2022:


In millions of dollars, except ratios	June 30, 2023			March 31, 2023			December 31, 2022
Tier 1 Capital	$	175,743		$	175,249		$	169,145
Total Leverage Exposure
On-balance sheet assets(1)(2)	$	2,467,128		$	2,463,758		$	2,432,823
Certain off-balance sheet exposures(3)
Potential future exposure on derivative contracts	144,823			143,328			133,071
Effective notional of sold credit derivatives, net(4)	31,833			30,931			34,117
Counterparty credit risk for repo-style transactions(5)	19,399			18,255			17,169
Other off-balance sheet exposures	318,185			320,800			326,553
Total of certain off-balance sheet exposures	$	514,240		$	513,314		$	510,910
Less: Tier 1 Capital deductions	37,822			37,328			36,960
Total Leverage Exposure	$	2,943,546		$	2,939,744		$	2,906,773
Supplementary Leverage ratio	5.97		%	5.96		%	5.82		%

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

(3)Represents the average of certain off-balance sheet exposures calculated as of the last day of each month in the quarter.

(4)Under the U.S. Basel III rules, banking organizations are required to include in Total Leverage Exposure the effective notional amount of sold credit derivatives, with netting of exposures permitted if certain conditions are met.

(5)Repo-style transactions include repurchase and reverse repurchase transactions as well as securities borrowing and securities lending transactions.

As presented in the table above, Citigroup’s Supplementary Leverage ratio was approximately 6.0% at June 30, 2023 and March 31, 2023, compared to approximately 5.8% at December 31, 2022. The ratio remained largely unchanged from the first quarter of 2023. The ratio increased from the fourth quarter of 2022, primarily driven by an increase in Tier 1 Capital due to year-to-date net income of $7.5 billion, partially offset by an increase in Total Leverage Exposure, largely driven by higher average on-balance sheet assets.

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 June 30, 2023, March 31, 2023 and December 31, 2022:


			Advanced Approaches									Standardized Approach
In millions of dollars, except ratios	Required Capital Ratios(1)		June 30, 2023			March 31, 2023			December 31, 2022			June 30, 2023			March 31, 2023			December 31, 2022
CET1 Capital(2)			$	150,482		$	151,724		$	149,593		$	150,482		$	151,724		$	149,593
Tier 1 Capital(2)			152,612			153,853			151,720			152,612			153,853			151,720
Total Capital (Tier 1 Capital + Tier 2 Capital)(2)(3)			165,840			167,065			165,131			173,517			174,608			172,647
Total Risk-Weighted Assets			1,041,217			1,038,394			1,003,747			986,744			968,749			982,914
Credit Risk(2)			$	758,445		$	762,148		$	728,082		$	944,565		$	932,787		$	948,150
Market Risk			42,058			35,532			34,403			42,179			35,962			34,764
Operational Risk			240,714			240,714			241,262			—			—			—
CET1 Capital ratio(4)(5)	7.0	%	14.45		%	14.61		%	14.90		%	15.25		%	15.66		%	15.22		%
Tier 1 Capital ratio(4)(5)	8.5		14.66			14.82			15.12			15.47			15.88			15.44
Total Capital ratio(4)(5)	10.5		15.93			16.09			16.45			17.58			18.02			17.56


In millions of dollars, except ratios	Required Capital Ratios		June 30, 2023			March 31, 2023			December 31, 2022
Quarterly Adjusted Average Total Assets(2)(6)			$	1,716,982		$	1,743,596		$	1,738,744
Total Leverage Exposure(2)(7)			2,162,693			2,191,870			2,189,541
Leverage ratio(5)	5.0	%	8.89		%	8.82		%	8.73		%
Supplementary Leverage ratio(5)	6.0		7.06			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 June 30, 2023 were in excess of the regulatory capital requirements under the U.S. Basel III rules. In addition, Citibank was “well capitalized” as of June 30, 2023.

As presented in the table above, Citibank’s Supplementary Leverage ratio was 7.1% at June 30, 2023 and 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 second quarter of 2023, partially offset by dividends, and a decrease in Total Leverage Exposure, primarily driven by higher average on-balance sheet assets. The year-to-date increase was primarily driven by an increase in Tier 1 Capital due to net income in 2023, partially offset by dividends, and a decrease in Total Leverage Exposure, primarily driven by higher average on-balance sheet assets and off-balance sheet exposures.

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 June 30, 2023. This information is provided for the purpose of analyzing the impact that a change in Citigroup’s or Citibank’s financial position or results of operations could have on these ratios. These sensitivities only consider a single change to either a component of capital, risk-weighted assets, quarterly adjusted average total assets or Total Leverage Exposure. Accordingly, an event that affects more than one factor may have a larger basis point impact than is reflected in these tables.


	Common Equity Tier 1 Capital ratio		Tier 1 Capital ratio		Total Capital ratio
In basis points	Impact of $100 million change in Common Equity Tier 1 Capital	Impact of $1 billion change in risk- weighted assets	Impact of $100 million change in Tier 1 Capital	Impact of $1 billion change in risk- weighted assets	Impact of $100 million change in Total Capital	Impact of $1 billion change in risk- weighted assets
Citigroup
Advanced Approaches	0.8	1.0	0.8	1.2	0.8	1.3
Standardized Approach	0.9	1.2	0.9	1.3	0.9	1.6
Citibank
Advanced Approaches	1.0	1.4	1.0	1.4	1.0	1.5
Standardized Approach	1.0	1.5	1.0	1.6	1.0	1.8


	Leverage ratio		Supplementary Leverage ratio
In basis points	Impact of $100 million change in Tier 1 Capital	Impact of $1 billion change in quarterly adjusted average total assets	Impact of $100 million change in Tier 1 Capital	Impact of $1 billion change in Total Leverage Exposure
Citigroup	0.4	0.3	0.3	0.2
Citibank	0.6	0.5	0.5	0.3

Citigroup Broker-Dealer Subsidiaries

At June 30, 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 $11 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 $27 billion at June 30, 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 June 30, 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:


	June 30, 2023
In billions of dollars, except ratios	External TLAC			LTD
Total eligible amount	$	338		$	154
% of Advanced Approaches risk- weighted assets	27.4		%	12.5		%
Regulatory requirement(1)(2)	22.5			9.5
Surplus amount	$	60		$	37
% of Total Leverage Exposure	11.5		%	5.2		%
Regulatory requirement	9.5			4.5
Surplus amount	$	58		$	22

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

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

As of June 30, 2023, Citi exceeded each of the TLAC and LTD regulatory requirements, resulting in a $22 billion surplus above its binding TLAC requirement of LTD as a percentage of Total Leverage Exposure.

For additional information on Citi’s TLAC-related requirements, see “Capital Resources—Total Loss-Absorbing Capacity (TLAC)” in Citi’s 2022 Form 10-K.

Capital Resources (Full Adoption of CECL)(1)

The following tables present Citigroup’s and Citibank’s capital components and ratios under a hypothetical scenario where the full impact of CECL is reflected as of June 30, 2023:


	Citigroup								Citibank
	Required Capital Ratios, Advanced Approaches		Required Capital Ratios, Standardized Approach		Advanced Approaches		Standardized Approach		Required Capital Ratios(2)		Advanced Approaches		Standardized Approach
CET1 Capital ratio	10.5	%	12.0	%	12.35	%	13.21	%	7.0	%	14.32	%	15.11	%
Tier 1 Capital ratio	12.0		13.5		14.09		15.08		8.5		14.53		15.33
Total Capital ratio	14.0		15.5		15.90		17.78		10.5		15.80		17.45


	Required Capital Ratios		Citigroup	Required Capital Ratios		Citibank
Leverage ratio	4.0	%	7.15 %	5.0	%	8.81 %
Supplementary Leverage ratio	5.0		5.90	6.0		6.99

(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.

Regulatory Capital Standards and Developments

Basel III Revisions

On July 27, 2023, the U.S. banking agencies issued a notice of proposed rulemaking, known as the Basel III Endgame (capital proposal), that would amend U.S. regulatory capital requirements.

The capital proposal would maintain the current capital rule’s dual-requirement structure for risk-weighted assets but would eliminate the use of internal models to calculate credit risk and operational risk components of risk-weighted assets. Large banking organizations, such as Citi, would be required to calculate their risk-based capital ratios under both the new expanded risk-based approach and the Standardized Approach and use the lower of the two for each risk-based capital ratio for determining the binding constraints.

The expanded risk-based approach is designed to align with the international capital standards adopted by the Basel Committee on Banking Supervision (Basel Committee). The Basel Committee finalized the Basel III reforms in December 2017, which included revisions to the methodologies to determine credit, market and operational risk-weighted asset amounts.

If adopted as proposed, the capital proposal’s impact on risk-weighted asset amounts would also affect several other requirements including TLAC, external long-term debt and the short-term wholesale funding score included in the GSIB surcharge under method 2 (see “GSIB Surcharge” below for additional changes in that area). The proposal has a three-year transition period that would begin on July 1, 2025. Citi is currently reviewing the proposal and will participate in the 120-day comment period. For additional information, see “Executive Summary” above.

GSIB Surcharge

Separately, the FRB proposed changes to the GSIB surcharge rule that aim to make it more risk sensitive. Proposed changes include measuring certain systemic indicators on a daily versus quarterly average basis, changing certain of the risk indicators, and shortening the time to come into compliance with each year’s surcharge. In addition, the proposal would narrow surcharge bands under method 2 from 50 bps to 10 bps to reduce cliff effects when moving between bands. This proposal is also subject to a 120-day comment period and provides that it would be effective two full calendar quarters after its finalization.

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)). Return on tangible common equity (RoTCE) represents annualized net income available to common shareholders as a percentage of average TCE. Tangible book value per share (TBVPS) represents average TCE divided by average common shares outstanding. Other companies may calculate these measures differently. TCE, RoTCE and TBVPS are non-GAAP financial measures.


In millions of dollars or shares, except per share amounts	June 30, 2023		December 31, 2022
Total Citigroup stockholders’ equity	$	208,719	$	201,189
Less: Preferred stock	20,245		18,995
Common stockholders’ equity	$	188,474	$	182,194
Less:
Goodwill	19,998		19,691
Identifiable intangible assets (other than MSRs)	3,895		3,763
Goodwill and identifiable intangible assets (other than MSRs) related to assets held-for-sale (HFS)	246		589
Tangible common equity (TCE)	$	164,335	$	158,151
Common shares outstanding (CSO)	1,925.7		1,937.0
Book value per share (common stockholders’ equity/CSO)	$	97.87	$	94.06
Tangible book value per share (TCE/CSO)	85.34		81.65


	Three Months Ended June 30,						Six Months Ended June 30,
In millions of dollars	2023			2022			2023			2022
Net income available to common shareholders	$	2,627		$	4,309		$	6,956		$	8,336
Average common stockholders’ equity	188,214			178,981			186,161			180,075
Average TCE	164,142			154,439			162,145			155,318
Return on average common stockholders’ equity	5.6		%	9.7		%	7.5		%	9.3		%
RoTCE	6.4			11.2			8.7			10.8

Managing Global Risk Table of Contents


MANAGING GLOBAL RISK						36
CREDIT RISK(1)						36
Loans						36
Corporate Credit						37
Consumer Credit						42
Additional Consumer and Corporate Credit Details						48
Loans Outstanding						48
Details of Credit Loss Experience						49
Allowance for Credit Losses on Loans (ACLL)						50
Non-Accrual Loans and Assets						52
LIQUIDITY RISK						54
High-Quality Liquid Assets (HQLA)						54
Liquidity Coverage Ratio (LCR)						54
Deposits						55
Long-Term Debt						56
Secured Funding Transactions and Short-Term Borrowings						58
Credit Ratings						59
MARKET RISK(1)						60
Market Risk of Non-Trading Portfolios						60
Market Risk of Trading Portfolios						70
OTHER RISKS						71
LIBOR Transition Risk						71
Country Risk						72
Russia						73
Ukraine						75
Argentina						76

(1) For additional information regarding certain credit risk, market risk and other quantitative and qualitative information, refer to Citi’s Pillar 3 Basel III Advanced Approaches Disclosures, as required by the rules of the Federal Reserve Board, on Citi’s Investor Relations website.

MANAGING GLOBAL RISK

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

CREDIT RISK

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

Loans

The table below details the average loans, by business and/or segment, and the total Citigroup end-of-period loans for each of the periods indicated:


In billions of dollars	2Q23		1Q23		2Q22
Personal Banking and Wealth Management
U.S. Retail banking	$	40	$	38	$	34
U.S. Cards	149		146		133
Global Wealth	150		149		150
Total	$	339	$	333	$	317
Institutional Clients Group
Services	$	80	$	79	$	85
Banking	185		191		199
Markets	13		13		13
Total	$	278	$	283	$	297
Total Legacy Franchises(1)	$	37	$	38	$	43
Total Citigroup loans (AVG)	$	654	$	654	$	657
Total Citigroup loans (EOP)	$	661	$	652	$