Citi | Investor Relations
Global Financial Conference 2013
November 19, 2013
Stephen Bird
CEO, Citi Asia
Overview
Citi’s focus on its unique historical strengths showing momentum
– Focused on 3 core businesses: Global Consumer Banking, Securities &
Banking and Transaction Services
– Continuing to simplify organization and exit non-core assets
Strategy well aligned with global trends and needs of our target client base
– Unique ability to serve clients with global needs
– Global network becoming more valuable and increasingly difficult to replicate
Asia continues to be a large driver of global GDP growth
Citi Asia’s franchise should provide attractive growth over time
– Focused on serving the urban-based, globally-minded consumer
– Well positioned as multinational corporates expand into Asia
– Unparalleled ability to help EM champions grow outside the region
2
Agenda
 Citi’s Financial Progress
• Citi’s Strategy is Well Aligned with Global Trends
• Citi Asia
Citigroup Results Showing Momentum(1)
(YTD, $B)
Citicorp
Citi Holdings
Earnings Before Tax
Revenue
2%
23%
$58.4
5.2
$57.7
2.7
$58.8
3.2
$13.2
$16.3
$11.6
53.2
YTD'11
4
55.0
YTD'12
55.5
YTD'13
16.0
17.9
(4.4)
(4.7)
YTD'11
YTD'12
18.8
(2.5)
YTD'13
Note: Totals may not sum due to rounding.
(1)
Year-to-date results through September for each period. Adjusted results, which exclude, as applicable, CVA / DVA in all periods and gains/(losses) on minority
investments in 2Q’11, 1Q’12, 2Q’12 and 3Q’12. Please refer to Slides 23 and 24 for a reconciliation of this information to reported results.
Citicorp – Geographically Diversified(1)
Asia
North America
YTD’13 Revenues
Latin America
EMEA
EOP Loans & Deposits(2)
YTD’13
Citicorp:
$55.4B
21%
44%
$895.6
Asia:
$11.5B
28%
19%
$561.4
16%
12%
28%
YTD’13 Net Income
YTD’13
Citicorp:
$13.6B
22%
Asia:
$157.3B
22%
14%
12%
45%
38%
46%
18%
15%
5
Asia:
$3.0B
Loans
Deposits
Note: Totals may not sum due to rounding.
(1)
Year-to-date results through September 2013. Adjusted results, which exclude CVA / DVA and the Corporate / Other segment (revenues of $127MM, net income of
$(992)MM, and EOP deposits of $18.1B). Please refer to Slide 24 for a reconciliation of this information to reported results.
(2)
As of 9/30/2013.
Asia:
$250.8B
Agenda
• Citi’s Financial Progress
 Citi’s Strategy is Well Aligned with Global Trends
• Citi Asia
Citi’s Strategy is Well Aligned with Global Trends
• Globalization is increasing the need for seamless, global
Global Trends
•
•
Transaction
Services
financial institutions
Urbanization is concentrating GDP and populations in
major cities
Digitization is changing the way clients and banks interact
• Unparalleled, seamless network in nearly 100 countries
• Leading cash management, trade finance and securities &
•
fund services provider
Helping corporates expand internationally and serving the
EM champions as they globalize
• A leading institutional bank for multi-national clients
Securities &
Banking
Global Consumer
Banking
7
•
requiring global services
Leveraging our global network for benefit of corporate and
institutional clients
• Retail banking focused on urban-based, globally minded
•
consumer segment
# 1 credit card issuer globally
Citi’s Integrated Global Business Model
Network Market(1)
Broader Institutional Market
Major Consumer Banking Cities
8
Note:
(1)
Network markets represent predominately Citi Transaction Services, local markets FX and corporate lending.
Rise of Emerging Markets is a Clear Trend
(%)
EM Driving Global GDP Growth
2013E-16E CAGR as of (1):
2010-12 CAGR
Nov-12
Oct-13
Developed Market GDP Growth
remains low but expectations
have stayed broadly stable
EM forecasts have
fallen but remain well
above DM
6.3
5.5
5.0
4.1
3.3
3.1
2.6
2.3
2.0
1.8
3.2
1.9
0.9
0.7
0.3
Developed Total
9
Euro Area
Source: IMF, Citi Investment Research
(1)
GDP estimates taken as of November 2012 and October 2013.
US
Emerging Total
World GDP
Asia Remains a Major Driver of Global GDP Growth
Short-term GDP Growth Expectations(1)
Mid-Term GDP Growth Expectations
(YoY Growth %)
(Constant $T, % Global GDP)
2013E
Asia ex-Japan
2014E
7.6
Rest of World
Global CAGR: 3%
Asia CAGR: 6%
7.2
$6.8
5.6
$80.9
$5.3
$68.6
4.8
27%
24%
21%
3.8
2.6
3.7 3.6 3.5
2.9
3.4
3.0
3.0
Asia to contribute
~40% of Global
2012-17E GDP
Growth
2.5
2012 GDP
Asia ExJapan
10 Source: Citi Investment Research
(1)
Asia ex-Japan GDP growth rates shown for those countries where Citi generates more than $1B in annual revenue.
Rest of
World
2017E GDP
Growth & Wealth Driven by Asia’s Urban Centers
Asia’s Urban Population Growth
Urban
Asia’s Urban GDP Growth
Rural
All of Asia’s population
growth expected to come
from urban areas
$24.5T
4.4B
3.9B
0.6
CAGR:
8%
(0.1)
$8.0T
52%
43%
2010
11
Urban
Growth
Rural
Growth
2025
Source: McKinsey Global Institute Cityscope 2.0, United Nations: Department of Economic and Social Affairs
2010
2025
Mobile-Oriented Asian Consumer Base
Mobile Usage & Banking(1)
Mobile Penetration
Hong Kong / Singapore Monthly Usage(3)
Branch Visits
Using Mobile Banking
(26)%
153%
1.9
1.4
120%
110%
Telephone
98%
81%
2007
1.6
2011
(25)%
1.2
69%
47%
42%
38%
37%
32%
24%
2007
Internet & Mobile
2011
36%
3.2
2.4
South
Korea
China
Singapore
India
Thailand
US
1.0
4.9
Average Monthly Mobile Banking Uses(2)
4.1
12
Notes:
(1)
(2)
(3)
1.9
1.9
1.6
2007
2011
Mobile penetration defined as mobile devices divided by total population. Mobile penetration data taken from the World Bank online database.
Mobile banking usage data from Bain & Company Customer Loyalty in Retail Banking 2012 report. Average monthly usage data averaged from three month survey
ended September 2012.
Industry-wide data taken from Mckinsey Personal Financial Services Survey, 2012.
Rise of Asian Corporates
Developed Market M&A in
Asia(1)
Asian Companies in
Fortune Global 500(2)
Asian Companies in BCG
100 Global Challengers(3)
China
India
58
2.9x
8
3.2x
20
$32B
$11B
2002
120
30
37
2012
2005
2013
2013
Note:
(1)
Source: Citi estimates. Deals above $500MM where the target was located in Asia (ex-Japan) and the acquirer in a developed market.
(2)
Asia, excludes Japan and Australia.
13 (3)
Source: BCG Global Challengers Report, January 2013. Global challengers are companies from developing economies that are both growing and globalizing
quickly.
Other
Agenda
• Citi’s Financial Progress
• Citi’s Strategy is Well Aligned with Global Trends
 Citi Asia
Citi Asia
Institutional Market (ICG)
Consumer Branches(1)
Major Consumer Banking Cities (GCB)
Citi Asia Today
• Citi Asia spans 18 countries
Korea
210
Taiwan
63
China
56
Hong Kong
43
India
42
Thailand
40
Japan
32
Indonesia
20
Philippines
16
Singapore
13
Australia
13
Malaysia
11
Vietnam
2
• >18% share of FX volumes(2)
Guam
1
• #2 Asia completed M&A YTD(3)
• 8 countries generate >$1B in
annual revenue
• Retail banking and cards in 14
countries
• ~560 retail branches
• Transaction services network in
18 countries, with seamless global
connectivity
• Trading desks in 17 countries
• Best Asian Investment Bank(4)
Note:
(1)
(2)
15 (3)
(4)
Branches as of September 30, 2013.
Source: Euromoney FX Survey, May 2013.
Source: Dealogic, 2013 YTD volume rankings.
Source: Euromoney 2013 Awards for Excellence, July 2013.
Citi Asia – Diversified Business Model(1)
YTD’13 Revenues
Global Consumer Banking
Securites & Banking
YTD Earnings Before Taxes(2)
Transaction Services
Asia Ex-Japan & Korea
Japan & Korea
YTD’13
$11.5B
Total: 9%
32%
$4.2
50%
$4.3
$4.6
0.4
0.3
0.6
18%
YTD’13 Net Income
Global Consumer Banking
Securites & Banking
Transaction Services
3.6
4.0
4.2
YTD'12
YTD'13
YTD’13
$3.0B
34%
41%
YTD'11
25%
Note: Totals may not sum due to rounding. Excludes Corporate / Other segment.
(1)
Adjusted results for Citicorp Asia, which exclude CVA / DVA. Please refer to Slide 24 for a reconciliation of this information to reported results.
16 (2) In constant dollars. Please refer to Slide 24 for a reconciliation of this information to reported results.
Growth in
Asia ex-Japan
& Korea:
15%
Citi Asia – Consumer Banking
Changing Consumer Needs
Citi’s Offerings
• Financial products integrated
with customers’ lifestyle
Convenience
• Increased usage of self
service channels
Citibank Express
• Customer centric tailored
Personalization
product offerings
• Increased focus on service
3 Citi Wallet
Simpler
Solutions
• User-friendly interface
Smart Banking
Branches
• Automation and digitization
Mobile Banking
17
Octopus Card /
Citi SMRT Card
Citi Asia – Wealth Management
1/3
2
14
218
450
677,000
1/3 of Asia’s
billionaires(1)
bank with Citi
The 2nd largest
wealth manager
in Asia Pacific
14 markets in
Asia Pacific
$218B in assets
under
management(2)
Wealth
management
centers
Provides wealth
management
services to over
677,000 clients
Citi’s Wealth Management Centers(3)
South Korea
China
Japan
191
48
Targeted Product Offerings
26
Taiwan
India
51
31
Hong Kong
Thailand
3
29
Philippines
Up to $1MM
Up to $10MM
Above $10MM
10
Malaysia
11
Indonesia
Singapore
20
Three distinct wealth management propositions to
cater to three distinct investing needs
26
Australia
4
Note:
(1)
Excludes Japan.
18 (2) Includes Private Bank assets under management, reported within Securities & Banking.
(3)
Citigold, Citigold Private Client and Citi Private Bank centers as of June 30, 2013.
Citi Asia - Corporate Banking
Corporate Banking Client Example
Depth of Relationship
Lead Arranger for
Bank Guarantee
Payments
Management
(EMEA)
Payments
Management
(Asia)
FX Services
(EMEA)
FX Services
(Asia)
FX
Advisory
Bond
Issuance
M&A
Advisory
Global
Credit Facility
Global Corp
T&E Card
Global Multi
Currency Pooling
Global USD
Pooling
Cash Back Promotion
Card (EMEA)
Corp T&E Card
(Western Europe)
Export
Financing
Liquidity
Management
(EMEA)
GDR Depositary
Bank
2007
Global
Liquidity
Management
Supplier
Financing
2008
Payments
Management
2009
Global
T&E
Card
2010
Cash
Management
2011
FX &
Liquidity
Advisory
2012
DCM
Book
Runner
2013
M&A &
Trade
Finance
Relationships span many products across Securities & Banking and Transaction Services
19
Conclusions
Citi has transformed itself over the past five years
– Simplified our organization and re-focusing on our core historical strengths
Our unparalleled Emerging Markets franchise is critical to our strategy
– Long-established franchises with local market expertise and global capabilities
Asia remains a significant growth driver for the global economy and Citi
We continue to invest in the region to capture these growth opportunities
Focused on serving our target customers in a responsible manner
20
Certain statements in this document are “forward-looking statements”
within the meaning of the U.S. Private Securities Litigation Reform Act of
1995. These statements are based on management’s current
expectations and are subject to uncertainty and changes in circumstances.
These statements are not guarantees of future results or occurrences.
Actual results and capital and other financial condition may differ materially
from those included in these statements due to a variety of factors,
including the precautionary statements included in this document and
those contained in Citigroup’s filings with the U.S. Securities and
Exchange Commission, including without limitation the “Risk Factors”
section of Citigroup’s 2012 Form 10-K. Any forward-looking statements
made by or on behalf of Citigroup speak only as to the date they are made,
and Citi does not undertake to update forward-looking statements to reflect
the impact of circumstances or events that arise after the date the forwardlooking statements were made.
21
Non-GAAP Financial Measures – Reconciliations
($MM)
23
Citigroup
YTD'11
YTD'12
YTD'13
Citi Holdings
Reported Revenues (GAAP)
Impact of:
CVA/DVA
MSSB
HDFC
Akbank
SPDB
Adjusted Revenues
$60,413
$51,211
$58,586
1,846
199
$58,368
(1,845)
(4,684)
1,116
(1,605)
542
$57,687
(178)
$58,764
Reported Revenues (GAAP)
Impact of:
CVA/DVA
MSSB
Adjusted Revenues
Reported Expenses (GAAP)
Impact of:
HDFC
Adjusted Expenses
$37,197
$36,265
$36,062
$37,197
4
$36,261
$36,062
Reported EBT (GAAP)
Impact of:
CVA / DVA
MSSB
HDFC
Akbank
SPDB
Adjusted EBT
$13,605
$6,730
$16,082
1,846
199
$11,560
(1,845)
(4,684)
1,112
(1,605)
542
$13,210
(178)
$16,260
Reported EBT (GAAP)
Impact of:
CVA / DVA
MSSB
Adjusted EBT
YTD'11
YTD'12
YTD'13
$5,215
$(1,859)
$3,245
40
$5,175
132
(4,684)
$2,693
2
$3,243
$(4,389) `
$(9,206) `
$(2,491)
40
$(4,429)
132
(4,684)
$(4,654)
2
$(2,493)
Non-GAAP Financial Measures – Reconciliations
($MM)
24
Citicorp
YTD'11
YTD'12
YTD'13
Citicorp Asia
YTD'11
YTD'12
YTD'13
Reported Revenues (GAAP)
Impact of:
CVA/DVA
HDFC
Akbank
SPDB
Adjusted Revenues
$55,198
$53,070
$55,341
$11,706
$11,495
$11,518
1,806
199
$53,193
(1,977)
1,116
(1,605)
542
$54,994
(180)
$55,521
Reported Revenues (GAAP)
Impact of:
CVA/DVA
Adjusted Revenues
195
$11,511
(154)
$11,649
(13)
$11,531
$4,524
$4,154
$4,572
Reported Expenses (GAAP)
Impact of:
HDFC
Adjusted Expenses
$32,593
$32,626
$31,633
$32,593
4
$32,622
$31,633
Reported EBT (GAAP)
Impact of:
CVA/DVA
Adjusted EBT
Impact of FX Translation
Adjusted EBT in Constant Dollars
195
$4,329
(103)
$4,226
(154)
$4,308
(21)
$4,287
(13)
$4,585
$4,585
$2,999
$3,011
$17,994
1,806
199
$15,989
$15,936
(1,977)
1,112
(1,605)
542
$17,864
$18,573
(180)
$18,753
Reported Net Income (GAAP)
Impact of:
CVA/DVA
Adjusted Net Income
$3,318
Reported EBT (GAAP)
CVA/DVA
HDFC
Akbank
SPDB
Adjusted EBT
121
$3,197
(94)
$3,093
(8)
$3,019
Reported Net Income (GAAP)
Impact of:
CVA/DVA
HDFC
Akbank
SPDB
Tax Benefit
Adjusted Net Income
$12,995
$11,827
$12,685
1,122
128
$11,745
(1,226)
722
(1,037)
349
582
$12,437
(114)
176
$12,623