P95DP10DP95DP10D0.02550.01380.01470.01100.01100.0110000027000000000550000000000.04460.00350.02380.04700.00350.02410.06370.0088751700000000false--12-31Q22019000083100144510000000451370000001477010000001781080000000.320.450.010.0160000000006000000000309956717730996028560.979289000000104880000001129320000001327810000000.10750.00750.10300.00450.09550.00300.09900.00750.10300.00454000000000110000000002960000000006100000000080000000002420000000000.11270.06760.00020.00390.00870.00870.03340.05350.00040.00320.00700.0381100000000000160000000000110900000012730000005000000040000000009710000001521000000717000000163400000075800000010050000003203000000200000003804000000200000003822900000049488000000412300000084300000004453000000884200000044000000000.037207880000002259700000015906000000167990000001.001.00300000003000000073840071920044830000005291000000731099833840546390

 
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, 2019

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from  to
Commission file number 1-9924
Citigroup Inc.
(Exact name of registrant as specified in its charter)
Delaware
 
52-1568099
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
388 Greenwich Street,
New York
NY
 
10013
(Address of principal executive offices)

 
(Zip code)
(212559-1000
(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, smaller reporting, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
 
 
 
 
 
 
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Yes     
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes     No 
Number of shares of Citigroup Inc. common stock outstanding on June 30, 2019: 2,259,056,466

Available on the web at www.citigroup.com
 




CITIGROUP’S SECOND QUARTER 2019—FORM 10-Q
OVERVIEW
MANAGEMENT'S DISCUSSION AND
  ANALYSIS OF FINANCIAL CONDITION AND
  RESULTS OF OPERATIONS
Executive Summary
Summary of Selected Financial Data
SEGMENT AND BUSINESS—INCOME (LOSS)
  AND REVENUES
SEGMENT BALANCE SHEET
Global Consumer Banking (GCB)
North America GCB
Latin America GCB
Asia GCB
Institutional Clients Group
Corporate/Other
OFF-BALANCE SHEET
  ARRANGEMENTS
CAPITAL RESOURCES
MANAGING GLOBAL RISK TABLE OF
  CONTENTS
MANAGING GLOBAL RISK
INCOME TAXES
FUTURE APPLICATION OF ACCOUNTING
  STANDARDS
DISCLOSURE CONTROLS AND
  PROCEDURES
DISCLOSURE PURSUANT TO SECTION 219 OF
  THE IRAN THREAT REDUCTION AND SYRIA
  HUMAN RIGHTS ACT
FORWARD-LOOKING STATEMENTS
FINANCIAL STATEMENTS AND NOTES
  TABLE OF CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL
  STATEMENTS (UNAUDITED)
UNREGISTERED SALES OF EQUITY SECURITIES,
  PURCHASES OF EQUITY SECURITIES AND
  DIVIDENDS




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, 2018 (2018 Annual Report on Form 10-K) and Citigroup’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 (First Quarter of 2019 Form 10-Q).
Additional information about Citigroup is available on Citi’s website at www.citigroup.com. Citigroup’s annual reports on Form 10-K, quarterly reports on Form 10-Q 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 the “Investors” page and selecting “All SEC Filings.” The SEC’s website also contains current reports on Form 8-K, and other information regarding Citi at www.sec.gov.
Certain reclassifications, including a realignment of certain businesses, have been made to the prior periods’ financial statements and disclosures to conform to the current period’s presentation. For additional information on certain recent reclassifications, see Notes 1 and 3 to the Consolidated Financial Statements below and Notes 1 and 3 to the Consolidated Financial Statements in Citi’s 2018 Annual Report on Form 10-K.
Throughout this report, “Citigroup,” “Citi” and “the Company” refer to Citigroup Inc. and its consolidated subsidiaries.


1




Citigroup is managed pursuant to two business segments: Global Consumer Banking and Institutional Clients Group, with the remaining operations in Corporate/Other.
acitisegmentsq119charta01.jpg
The following are the four regions in which Citigroup operates. The regional results are fully reflected in the segment results above.
citiregions18q1a03.jpg

(1)
Latin America GCB consists of Citi’s consumer banking business in Mexico.
(2)
Asia GCB includes the results of operations of GCB activities in certain EMEA countries for all periods presented.
(3)
North America includes the U.S., Canada and Puerto Rico, Latin America includes Mexico and Asia includes Japan.

2



MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

EXECUTIVE SUMMARY

Second Quarter of 2019—Results Demonstrated Continued Progress
As described further throughout this Executive Summary, during the second quarter of 2019, Citi continued to demonstrate steady progress toward improving its profitability and returns, despite an uncertain environment. During the quarter, Citi had revenue growth and positive operating leverage in every region in Global Consumer Banking (GCB), excluding the impact of foreign currency translation into U.S. dollars for reporting purposes (FX translation). (Citi’s results of operations excluding the impact of FX translation are non-GAAP financial measures.)
Citi also showed continued momentum across treasury and trade solutions, securities services and the private bank in the Institutional Clients Group (ICG), while investment banking and fixed income and equity markets revenues were impacted by a challenging market environment. Citi’s results in the quarter also included a pretax gain of approximately $350 million (approximately $270 million after-tax) on Citi’s investment in Tradeweb (an electronic trading platform), recorded in fixed income markets within ICG.
Citi continued to demonstrate strong expense discipline, resulting in the eleventh consecutive quarter of positive operating leverage. Citi also had deposit and loan growth in both GCB and ICG, while credit quality remained broadly stable.
In the quarter, Citi continued to return capital to its shareholders, including $4.6 billion in the form of common stock repurchases and dividends. Citi repurchased approximately 54 million common shares, contributing to a 10% reduction in average outstanding common shares from the prior-year period. Despite progress in returning capital to shareholders, Citi’s key regulatory capital metrics remained strong (see “Capital” below).
During the quarter, the Federal Reserve Board advised Citi that it did not object to the capital plan submitted as part of Citi’s 2019 Comprehensive Capital Analysis and Review (CCAR). Accordingly, Citi intends to return $21.5 billion of capital to its common shareholders over the next four quarters, beginning in the third quarter of 2019 (for additional information, see “Equity Security Repurchases” and “Dividends” below).
While global growth has continued, economic forecasts for 2019 have been lowered and various economic, political and other risks and uncertainties could create a more volatile operating environment and impact Citi’s businesses and future results. For a discussion of the risks and uncertainties that could impact Citi’s businesses, results of operations and financial condition during the remainder of 2019, see each respective business’s results of operations and “Forward-Looking Statements” below, as well as each respective business’s results of operations and the “Managing Global Risk” and “Risk Factors” sections in Citi’s 2018 Annual Report on Form 10-K.
 

Second Quarter of 2019 Results Summary

Citigroup
Citigroup reported net income of $4.8 billion, or $1.95 per share, compared to net income of $4.5 billion, or $1.63 per share, in the prior-year period. Net income increased 7% from the prior-year period, primarily driven by higher revenues, lower expenses and a lower effective tax rate, partially offset by higher cost of credit. Earnings per share increased 20%, including the Tradeweb gain. Excluding the Tradeweb gain, earnings per share of $1.83 increased 12%, primarily reflecting the 10% reduction in average shares outstanding, driven by the common stock repurchases as well as the lower effective tax rate. (Citi’s results of operations excluding gains are non-GAAP financial measures.)
Citigroup revenues of $18.8 billion in the second quarter of 2019 increased 2% from the prior-year period, reflecting the Tradeweb gain and higher revenues across GCB, partially offset by declines in investment banking and fixed income and equity markets revenues, as well as mark-to-market losses on loan hedges in ICG.
Citigroup’s end-of-period loans increased 3% to $689 billion versus the prior-year period. Excluding the impact of FX translation, Citigroup’s end-of-period loans also grew 3%, as 4% aggregate growth in GCB and ICG was partially offset by the continued wind-down of legacy assets in Corporate/Other. Citigroup’s end-of-period deposits increased 5% to $1.0 trillion versus the prior-year period. Excluding the impact of FX translation, Citigroup’s deposits also increased 5%, primarily driven by 6% growth in ICG deposits as well as 3% growth in GCB.

Expenses
Citigroup operating expenses of $10.5 billion decreased 2% versus the prior-year period, as efficiency savings and the wind-down of legacy assets were partially offset by continued investments and volume-driven growth. Year-over-year, ICG operating expenses were down 2% and Corporate/Other operating expenses decreased 20%, while GCB operating expenses were largely unchanged.

Cost of Credit
Citi’s total provisions for credit losses and for benefits and claims of $2.1 billion increased 16% from the prior-year period. The increase was primarily driven by higher net credit losses in both Citi-branded cards and Citi retail services in North America GCB as well as normalization in credit trends in ICG.
Net credit losses of $2.0 billion increased 15% versus the prior-year period. Consumer net credit losses of $1.9 billion increased 11% from the prior-year period, primarily reflecting volume growth and seasoning in the North America cards portfolios. Corporate net credit losses increased to $70 million from a net recovery of $2 million in the prior-year period, reflecting credit normalization in ICG. For additional

3



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

Capital
Citigroup’s Common Equity Tier 1 (CET1) Capital and Tier 1 Capital ratios were 11.9% and 13.4% as of June 30, 2019, respectively, compared to 12.1% and 13.8% as of June 30, 2018, both based on the Basel III Standardized Approach for determining risk-weighted assets. The decline in regulatory capital ratios primarily reflected the return of capital to common shareholders, partially offset by net income. Citigroup’s Supplementary Leverage ratio as of June 30, 2019 was 6.4%, compared to 6.6% as of June 30, 2018. For additional information on Citi’s capital ratios and related components, see “Capital Resources” below.

Global Consumer Banking
GCB net income of $1.4 billion increased 11%. Excluding the impact of FX translation, net income also increased 11%, driven primarily by higher revenues and a lower effective tax rate, partially offset by higher expenses and cost of credit. GCB operating expenses of $4.7 billion were largely unchanged versus the prior-year period. Excluding the impact of FX translation, expenses increased 1%, as continued investments and volume-driven expenses were largely offset by efficiency savings.
GCB revenues of $8.5 billion increased 3% versus the prior-year period. Excluding the impact of FX translation, revenues increased 4%, driven by growth in all three regions. North America GCB revenues of $5.2 billion increased 3%, primarily driven by growth in Citi-branded cards and Citi retail services, as retail banking revenues were largely unchanged. In North America GCB, Citi-branded cards revenues of $2.2 billion increased 7%, primarily driven by growth in interest-earning balances. Citi retail services revenues of $1.6 billion increased 1% versus the prior-year period, primarily reflecting loan growth, partially offset by higher contractual partner payments. Retail banking revenues of $1.4 billion were largely unchanged versus the prior-year period. Excluding mortgage revenues, retail banking revenues of $1.2 billion increased 1% from the prior-year period, as improved growth in deposit volumes was partially offset by lower deposit spreads in commercial banking.
North America GCB average deposits of $183 billion increased 2% year-over-year, average retail banking loans of $58 billion increased 4% year-over-year and assets under management of $68 billion grew 12%. Average Citi-branded card loans of $88 billion increased 2%, while Citi-branded card purchase sales of $93 billion increased 8% versus the prior-year period. Average Citi retail services loans of $49 billion increased 5% versus the prior-year period, while Citi retail services purchase sales of $23 billion increased 4%. For additional information on the results of operations of North America GCB for the second quarter of 2019, see “Global Consumer Banking—North America GCB” below.
International GCB revenues (consisting of Latin America GCB and Asia GCB (which includes the results of operations in certain EMEA countries)) of $3.3 billion increased 3%
 
versus the prior-year period. Excluding the impact of FX translation, international GCB revenues increased 4% versus the prior-year period. On this basis, Latin America GCB revenues increased 3% versus the prior-year period, including the impact of the revenues associated with an asset management business in Mexico sold in the third quarter of 2018. Excluding this impact, Latin America GCB revenues increased 5%, primarily driven by an increase in cards revenues and improved deposit spreads. Asia GCB revenues increased 5%, including a gain from a building sale. Excluding this gain, revenues increased 3%, primarily driven by higher deposit revenues as well as a recovery in investment revenues. For additional information on the results of operations of Latin America GCB and Asia GCB for the second quarter of 2019, including the impact of FX translation, see “Global Consumer Banking—Latin America GCB” and “Global Consumer Banking—Asia GCB” below.
Year-over-year, international GCB average deposits of $130 billion increased 5%, average retail banking loans of $90 billion increased 2%, assets under management of $108 billion increased 5%, average card loans of $25 billion increased 4% and card purchase sales of $26 billion increased 6%, all excluding the impact of FX translation.

Institutional Clients Group
ICG net income of $3.3 billion increased 3%, primarily driven by a decrease in expenses and a lower effective tax rate, partially offset by higher cost of credit. ICG operating expenses decreased 2% to $5.4 billion, as efficiency savings more than offset investments and volume-related expenses.
ICG revenues of $9.7 billion were largely unchanged in the second quarter of 2019, as the Tradeweb gain was offset by a 3% decrease in Banking revenues and a 4% decrease in Markets and securities services revenues. The decrease in Banking revenues included the impact of $75 million of losses on loan hedges within corporate lending, compared to gains of $23 million in the prior-year period.
Banking revenues of $5.1 billion (excluding the impact of gains (losses) on loan hedges within corporate lending) decreased 1%, as growth in treasury and trade solutions and the private bank was more than offset by lower revenues in investment banking and corporate lending. Investment banking revenues of $1.3 billion decreased 10%, but outperformed the market wallet. Advisory revenues decreased 36% to $232 million, equity underwriting revenues decreased 6% to $314 million and debt underwriting revenues increased 2% to $737 million, all versus the prior-year period.
Treasury and trade solutions revenues of $2.4 billion increased 4% versus the prior-year period, and 7% excluding the impact of FX translation, reflecting continued strong client engagement, with growth in deposits and transaction volumes as well as improved trade spreads. Private bank revenues increased 2% to $866 million versus the prior-year period, reflecting growth with new and existing clients, which drove higher lending and deposit volumes as well as growth in assets under management, partially offset by spread compression. Corporate lending revenues decreased 24% to $463 million. Excluding the impact of gains (losses) on loan hedges,

4



corporate lending revenues decreased 9% versus the prior-year period, reflecting lower spreads and higher hedging costs.
Markets and securities services revenues of $4.7 billion increased 4% from the prior-year period, including the Tradeweb gain. Excluding the Tradeweb gain, Markets and securities services revenues decreased 4% from the prior-year period, as higher revenues in securities services were more than offset by lower fixed income and equity markets revenues. Fixed income markets revenues of $3.3 billion increased 8% from the prior-year period, including the Tradeweb gain. Excluding the Tradeweb gain, fixed income markets revenues decreased 4%, reflecting the challenging market environment, particularly in rates. Equity markets revenues of $790 million decreased 9%, primarily reflecting lower client activity in cash equities and prime finance, partially offset by strong corporate client activity in derivatives. Securities services revenues of $682 million increased 3% versus the prior-year period, and 7% excluding the impact of FX translation, reflecting higher rates as well as an increase in client activity. For additional information on the results of operations of ICG for the second quarter of 2019, see “Institutional Clients Group” below.

Corporate/Other
Corporate/Other net income was $54 million in the second quarter of 2019, compared to a net loss of $14 million in the prior-year period. Operating expenses of $481 million declined 20% from the prior-year period, largely reflecting the wind-down of legacy assets. Corporate/Other revenues of $532 million increased 1% from the prior-year period, as higher treasury revenues and gains were largely offset by the continued wind-down of legacy assets. For additional information on the results of operations of Corporate/Other for the second quarter of 2019, see “Corporate/Other” below.


















5



RESULTS OF OPERATIONS
SUMMARY OF SELECTED FINANCIAL DATA—PAGE 1
Citigroup Inc. and Consolidated Subsidiaries
 
Second Quarter
 
Six Months
 
In millions of dollars, except per share amounts and ratios
2019
2018
% Change
2019
2018
% Change
Net interest revenue
$
11,950

$
11,665

2
 %
$
23,709

$
22,837

4
 %
Non-interest revenue
6,808

6,804


13,625

14,504

(6
)
Revenues, net of interest expense
$
18,758

$
18,469

2
 %
$
37,334

$
37,341

 %
Operating expenses
10,500

10,712

(2
)
21,084

21,637

(3
)
Provisions for credit losses and for benefits and claims
2,093

1,812

16

4,073

3,669

11

Income from continuing operations before income taxes
$
6,165

$
5,945

4
 %
$
12,177

$
12,035

1
 %
Income taxes
1,373

1,444

(5
)
2,648

2,885

(8
)
Income from continuing operations
$
4,792

$
4,501

6
 %
$
9,529

$
9,150

4
 %
Income from discontinued operations,
  net of taxes(1)
17

15

13

15

8

88

Net income before attribution of noncontrolling
  interests
$
4,809

$
4,516

6
 %
$
9,544

$
9,158

4
 %
Net income attributable to noncontrolling interests
10

26

(62
)
35

48

(27
)
Citigroup’s net income
$
4,799

$
4,490

7
 %
$
9,509

$
9,110

4
 %
Less:
 
 


 
 
 
Preferred dividends—Basic
$
296

$
318

(7
)%
$
558

$
590

(5
)%
Dividends and undistributed earnings allocated to employee restricted and deferred shares that contain nonforfeitable rights to dividends, applicable to basic EPS
50

49

2

109

90

21

Income allocated to unrestricted common shareholders
  for basic and diluted EPS
$
4,453

$
4,123

8
 %
$
8,842

$
8,430

5
 %
Earnings per share
 
 


 
 

 
Basic
 
 


 
 

 
Income from continuing operations
$
1.94

$
1.62

20
 %
$
3.81

$
3.30

15
 %
Net income
1.95

1.63

20

3.82

3.31

15

Diluted
 
 


 
 
 
Income from continuing operations
$
1.94

$
1.62

20
 %
$
3.81

$
3.30

15
 %
Net income
1.95

1.63

20

3.82

3.31

15

Dividends declared per common share
0.45

0.32

41

0.90

0.64

41


Table continues on the next page, including footnotes.

6




SUMMARY OF SELECTED FINANCIAL DATA—PAGE 2
Citigroup Inc. and Consolidated Subsidiaries
 
Second Quarter
 
Six Months
 
In millions of dollars, except per share amounts, ratios and direct staff
2019
2018
% Change
2019
2018
% Change
At June 30:
 
 
 
 
 
 
Total assets
$
1,988,226

$
1,912,334

4
 %
 
 
 
Total deposits
1,045,607

996,730

5

 
 
 
Long-term debt
252,189

236,822

6

 
 
 
Citigroup common stockholders’ equity
179,379

181,059

(1
)
 
 
 
Total Citigroup stockholders’ equity
197,359

200,094

(1
)
 
 
 
Direct staff (in thousands)
200

205

(2
)
 
 
 
Performance metrics
 
 


 
 
 
Return on average assets
0.97
%
0.94
%


0.98
%
0.96
%
 
Return on average common stockholders’ equity(2)
10.1

9.2



10.2

9.5

 
Return on average total stockholders’ equity(2)
9.8

9.0



9.8

9.2

 
Efficiency ratio (total operating expenses/total revenues)
56.0

58.0



56.5

57.9

 
Basel III ratios
 
 
 
 
 
 
Common Equity Tier 1 Capital(3)
11.89
%
12.14
%
 
 
 
 
Tier 1 Capital(3)
13.43

13.77

 
 
 
 
Total Capital(3)
16.36

16.31

 
 
 
 
Supplementary Leverage ratio
6.38

6.60

 
 
 
 
Citigroup common stockholders’ equity to assets
9.02
%
9.47
%
 


 
 
Total Citigroup stockholders’ equity to assets
9.93

10.46

 


 
 
Dividend payout ratio(4)
23.1

19.6

 
23.6
%
19.3
%
 
Total payout ratio(5)
102.5

74.9

 
108.9

73.1

 
Book value per common share
$
79.40

$
71.95

10
 %


 
 
Tangible book value (TBV) per share(6)
67.64

61.29

10

 
 
 
(1)
See Note 2 to the Consolidated Financial Statements in Citi’s 2018 Annual Report on Form 10-K for additional information on Citi’s discontinued operations.
(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)
Citi’s reportable Common Equity Tier 1 (CET1) Capital and Tier 1 Capital ratios were the lower derived under the U.S. Basel III Standardized Approach, whereas the reportable Total Capital ratio was the lower derived under the U.S. Basel III Advanced Approaches framework. This reflects the U.S. Basel III requirement to report the lower of risk-based capital ratios under both the Standardized Approach and Advanced Approaches in accordance with the Collins Amendment of the Dodd-Frank Act.
(4)
Dividends declared per common share as a percentage of net income per diluted share.
(5)
Total common dividends declared plus common stock repurchases as a percentage of net income available to common shareholders. See “Consolidated Statement of Changes in Stockholders’ Equity,” Note 9 to the Consolidated Financial Statements and “Equity Security Repurchases” below for the component details.
(6)
For information on TBV, see “Capital Resources—Tangible Common Equity, Book Value Per Share, Tangible Book Value Per Share and Returns on Equity” below.




7



SEGMENT AND BUSINESS—INCOME (LOSS) AND REVENUES
CITIGROUP INCOME
 
Second Quarter
 
Six Months
 
In millions of dollars
2019
2018
% Change
2019
2018
% Change
Income from continuing operations
 
 
 
 
 
 
Global Consumer Banking
 
 
 
 
 
 
  North America
$
721

$
719

 %
$
1,490

$
1,557

(4
)%
  Latin America
262

197

33

514

376

37

  Asia(1)
430

360

19

846

733

15

Total
$
1,413

$
1,276

11
 %
$
2,850

$
2,666

7
 %
Institutional Clients Group


 




 


  North America
$
1,022

$
1,030

(1
)%
$
1,736

$
1,888

(8
)%
  EMEA
1,005

986

2

2,130

2,099

1

  Latin America
491

517

(5
)
994

1,011

(2
)
  Asia
825

708

17

1,805

1,577

14

Total
$
3,343

$
3,241

3
 %
$
6,665

$
6,575

1
 %
Corporate/Other
36

(16
)
NM

14

(91
)
NM

Income from continuing operations
$
4,792

$
4,501

6
 %
$
9,529

$
9,150

4
 %
Discontinued operations
$
17

$
15

13
 %
$
15

$
8

88
 %
Less: Net income attributable to noncontrolling interests
10

26

(62
)
35

48

(27
)
Citigroup’s net income
$
4,799

$
4,490

7
 %
$
9,509

$
9,110

4
 %

(1)
Asia GCB includes the results of operations of GCB activities in certain EMEA countries for all periods presented.
NM Not meaningful

CITIGROUP REVENUES
 
Second Quarter
 
Six Months
 
In millions of dollars
2019
2018
% Change
2019
2018
% Change
Global Consumer Banking
 
 
 
 
 
 
  North America
$
5,158

$
5,004

3
 %
$
10,343

$
10,161

2
 %
  Latin America
1,432

1,375

4

2,813

2,715

4

  Asia(1)
1,915

1,865

3

3,800

3,794


Total
$
8,505

$
8,244

3
 %
$
16,956

$
16,670

2
 %
Institutional Clients Group


 


 
 


  North America
$
3,478

$
3,511

(1
)%
$
6,597

$
6,777

(3
)%
  EMEA
2,960

3,043

(3
)
6,130

6,210

(1
)
  Latin America
1,195

1,168

2

2,355

2,384

(1
)
  Asia
2,088

1,975

6

4,333

4,181

4

Total
$
9,721

$
9,697

 %
$
19,415

$
19,552

(1
)%
Corporate/Other
532

528

1

963

1,119

(14
)
Total Citigroup net revenues
$
18,758

$
18,469

2
 %
$
37,334

$
37,341

 %
(1)
Asia GCB includes the results of operations of GCB activities in certain EMEA countries for all periods presented.




8



SEGMENT BALANCE SHEET(1) 
In millions of dollars
Global
Consumer
Banking
Institutional
Clients
Group
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
$
9,323

$
71,804

$
122,116

$

$
203,243

Securities borrowed and purchased under agreements to resell
175

259,341

253


259,769

Trading account assets
1,041

295,151

10,639


306,831

Investments
1,064

117,471

231,167


349,702

Loans, net of unearned income and
  allowance for loan losses

304,569

360,298

11,337


676,204

Other assets
38,943

110,571

42,963


192,477

Net inter-segment liquid assets(4)
81,471

239,509

(320,980
)


Total assets
$
436,586

$
1,454,145

$
97,495

$

$
1,988,226

Liabilities and equity
 
 
 
 
 
Total deposits
$
315,923

$
714,759

$
14,925

$

$
1,045,607

Securities loaned and sold under
  agreements to repurchase
4,255

176,844

34


181,133

Trading account liabilities
411

135,394

489


136,294

Short-term borrowings
370

26,646

15,426


42,442

Long-term debt(3)
1,752

53,783

44,513

152,141

252,189

Other liabilities
21,023

92,664

18,764


132,451

Net inter-segment funding (lending)(3)
92,852

254,055

2,593

(349,500
)

Total liabilities
$
436,586

$
1,454,145

$
96,744

$
(197,359
)
$
1,790,116

Total stockholders’ equity(5)


751

197,359

198,110

Total liabilities and equity
$
436,586

$
1,454,145

$
97,495

$

$
1,988,226


(1)
The supplemental information presented in the table above reflects Citigroup’s consolidated GAAP balance sheet by reporting segment as of June 30, 2019. The respective segment information depicts the assets and liabilities managed by each segment as of such date.
(2)
Consolidating eliminations for total Citigroup and Citigroup parent company assets and liabilities are recorded within Corporate/Other.
(3)
The total stockholders’ equity and the majority of long-term debt of Citigroup reside in the Citigroup parent company balance sheet. Citigroup allocates stockholders’ equity and long-term debt to its businesses through inter-segment allocations as shown above.
(4)
Represents the attribution of Citigroup’s liquid assets (primarily consisting of cash, marketable equity securities and available-for-sale debt securities) to the various businesses based on Liquidity Coverage Ratio (LCR) assumptions.
(5)
Corporate/Other equity represents noncontrolling interests.







9



GLOBAL CONSUMER BANKING
Global Consumer Banking (GCB) consists of consumer banking businesses in North America, Latin America (consisting of Citi’s consumer banking business in Mexico) and Asia. GCB provides traditional banking services to retail customers through retail banking, including commercial banking, and Citi-branded cards and Citi retail services (for additional information on these businesses, see “Citigroup Segments” above). GCB is focused on its priority markets in the U.S., Mexico and Asia with 2,399 branches in 19 countries and jurisdictions as of June 30, 2019. At June 30, 2019, GCB had approximately $437 billion in assets and $316 billion in deposits.
GCB’s overall strategy is to leverage Citi’s global footprint and be the pre-eminent bank for the affluent and emerging affluent consumers in large urban centers. In credit cards and in certain retail markets (including commercial banking), Citi serves customers in a somewhat broader set of segments and geographies.

 
Second Quarter
 
Six Months
 
In millions of dollars, except as otherwise noted
2019
2018
% Change
2019
2018
% Change
Net interest revenue
$
7,272

$
7,019

4
 %
$
14,525

$
13,999

4
 %
Non-interest revenue
1,233

1,225

1

2,431

2,671

(9
)
Total revenues, net of interest expense
$
8,505

$
8,244

3
 %
$
16,956

$
16,670

2
 %
Total operating expenses
$
4,663

$
4,652

 %
$
9,271

$
9,329

(1
)%
Net credit losses
$
1,889

$
1,726

9
 %
$
3,780

$
3,462

9
 %
Credit reserve build (release)
99

154

(36
)
175

298

(41
)
Provision (release) for unfunded lending commitments
5

3

67
 %
10

2

NM

Provision for benefits and claims
19

22

(14
)
31

48

(35
)
Provisions for credit losses and for benefits and claims (LLR & PBC)
$
2,012

$
1,905

6
 %
$
3,996

$
3,810

5
 %
Income from continuing operations before taxes
$
1,830

$
1,687

8
 %
$
3,689

$
3,531

4
 %
Income taxes
417

411

1

839

865

(3
)
Income from continuing operations
$
1,413

$
1,276

11
 %
$
2,850

$
2,666

7
 %
Noncontrolling interests
1

1


1

3

(67
)
Net income
$
1,412

$
1,275

11
 %
$
2,849

$
2,663

7
 %
Balance Sheet data and ratios (in billions of dollars)


 


 
 


Total EOP assets
$
437

$
422

4
 %
 
 


Average assets
431

417

3

$
429

$
420

2
 %
Return on average assets
1.31
%
1.23
%


1.34
%
1.28
%


Efficiency ratio
55

56



55

56



Average deposits
$
313

$
306

2

$
312

$
307

2

Net credit losses as a percentage of average loans
2.45
%
2.28
%


2.46
%
2.29
%


Revenue by business


 


 
 


Retail banking
$
3,574

$
3,483

3
 %
$
7,041

$
6,947

1
 %
Cards(1)
4,931

4,761

4

9,915

9,723

2

Total
$
8,505

$
8,244

3
 %
$
16,956

$
16,670

2
 %
Income from continuing operations by business


 


 
 


Retail banking
$
629

$
577

9
 %
$
1,155

$
1,097

5
 %
Cards(1)
784

699

12

1,695

1,569

8

Total
$
1,413

$
1,276

11
 %
$
2,850

$
2,666

7
 %
Table continues on the next page, including footnotes.


10



Foreign currency (FX) translation impact
 
 


 
 
 
Total revenue—as reported
$
8,505

$
8,244

3
%
$
16,956

$
16,670

2
 %
Impact of FX translation(2)

(29
)



(142
)


Total revenues—ex-FX(3)
$
8,505

$
8,215

4
%
$
16,956

$
16,528

3
 %
Total operating expenses—as reported
$
4,663

$
4,652

%
$
9,271

$
9,329

(1
)%
Impact of FX translation(2)

(23
)



(93
)


Total operating expenses—ex-FX(3)
$
4,663

$
4,629

1
%
$
9,271

$
9,236

 %
Total provisions for LLR & PBC—as reported
$
2,012

$
1,905

6
%
$
3,996

$
3,810

5
 %
Impact of FX translation(2)

(2
)



(22
)


Total provisions for LLR & PBC—ex-FX(3)
$
2,012

$
1,903

6
%
$
3,996

$
3,788

5
 %
Net income—as reported
$
1,412

$
1,275

11
%
$
2,849

$
2,663

7
 %
Impact of FX translation(2)

(4
)



(19
)


Net income—ex-FX(3)
$
1,412

$
1,271

11
%
$
2,849

$
2,644

8
 %
(1)
Includes both Citi-branded cards and Citi retail services.
(2)
Reflects the impact of FX translation into U.S. dollars at the second quarter of 2019 and year-to-date 2019 average exchange rates for all periods presented.
(3)
Presentation of this metric excluding FX translation is a non-GAAP financial measure.
NM Not meaningful


11



NORTH AMERICA GCB
North America GCB provides traditional retail banking, including commercial banking, and its Citi-branded cards and Citi retail services card products to retail customers and small to mid-size businesses, as applicable, in the U.S. North America GCB’s U.S. cards product portfolio includes its proprietary portfolio (including the Citi Double Cash, Thank You and Value cards) and co-branded cards (including, among others, American Airlines and Costco) within Citi-branded cards as well as its co-brand and private label relationships (including, among others, Sears, The Home Depot, Best Buy and Macy’s) within Citi retail services.
As of June 30, 2019, North America GCB had 688 retail bank branches concentrated in the six key metropolitan areas of New York, Chicago, Miami, Washington, D.C., Los Angeles and San Francisco. Also as of June 30, 2019, North America GCB had approximately 9.1 million retail banking customer accounts, $58.3 billion in retail banking loans and $184.0 billion in deposits. In addition, North America GCB had approximately 118.9 million Citi-branded and Citi retail services credit card accounts with $140.2 billion in outstanding card loan balances.
 
Second Quarter
 
Six Months
 
In millions of dollars, except as otherwise noted
2019
2018
% Change
2019
2018
% Change
Net interest revenue
$
5,030

$
4,780

5
 %
$
10,088

$
9,530

6
 %
Non-interest revenue
128

224

(43
)
255

631

(60
)
Total revenues, net of interest expense
$
5,158

$
5,004

3
 %
$
10,343

$
10,161

2
 %
Total operating expenses
$
2,720

$
2,666

2
 %
$
5,389

$
5,311

1
 %
Net credit losses
$
1,428

$
1,278

12
 %
$
2,857

$
2,574

11
 %
Credit reserve build (release)
82

115

(29
)
180

238

(24
)
Provision (release) for unfunded lending commitments
6

2

NM

11

(2
)
NM

Provision for benefits and claims
6

5

20

12

11

9

Provisions for credit losses and for benefits and claims
$
1,522

$
1,400

9
 %
$
3,060

$
2,821

8
 %
Income from continuing operations before taxes
$
916

$
938

(2
)%
$
1,894

$
2,029

(7
)%
Income taxes
195

219

(11
)
404

472

(14
)
Income from continuing operations
$
721

$
719

 %
$
1,490

$
1,557

(4
)%
Noncontrolling interests






Net income
$
721

$
719

 %
$
1,490

$
1,557

(4
)%
Balance Sheet data and ratios (in billions of dollars)


 


 

 



Average assets
$
253

$
244

4
 %
$
252

$
246

2
 %
Return on average assets
1.14
%
1.18
%


1.19
%
1.28
%


Efficiency ratio
53

53



52

52



Average deposits
$
183.0

$
179.9

2

$
182.7

$
180.4

1

Net credit losses as a percentage of average loans
2.93
%
2.72
%


2.95
%
2.74
%


Revenue by business


 


 

 



Retail banking
$
1,351

$
1,348

 %
$
2,667

$
2,655

 %
Citi-branded cards
2,197

2,062

7

4,392

4,294

2

Citi retail services
1,610

1,594

1

3,284

3,212

2

Total
$
5,158

$
5,004

3
 %
$
10,343

$
10,161

2
 %
Income from continuing operations by business


 


 

 



Retail banking
$
114

$
161

(29
)%
$
197

$
301

(35
)%
Citi-branded cards
364

309

18

746

734

2

Citi retail services
243

249

(2
)
547

522

5

Total
$
721

$
719

 %
$
1,490

$
1,557

(4
)%

NM Not meaningful

12



2Q19 vs. 2Q18
Net income was largely unchanged, as higher revenues and a lower effective tax rate were offset by higher cost of credit and higher expenses.
Revenues increased 3%, reflecting growth in Citi-branded cards and Citi retail services.
Retail banking revenues were largely unchanged. Excluding mortgage revenues (decline of 9%), revenues were up 1%, as growth in deposit volumes was partially offset by lower deposit spreads in commercial banking. Average deposits increased 2% and assets under management increased 12%. The decline in mortgage revenues was driven by spread compression, partially offset by higher volumes.
Cards revenues increased 4%. In Citi-branded cards, revenues increased 7%, primarily driven by continued growth in interest-earning balances. Average loans increased 2% and purchase sales increased 8%.
Citi retail services revenues increased 1%, primarily driven by organic loan growth and the benefit of the L.L.Bean portfolio acquisition, partially offset by higher contractual partner payments. Average loans increased 5% and purchase sales increased 4%.
Expenses increased 2%, as higher volume-related expenses and investments were largely offset by efficiency savings.
Provisions increased 9% from the prior-year period, primarily driven by higher net credit losses, partially offset by a lower net loan loss reserve build. Net credit losses increased 12%, primarily driven by higher net credit losses in Citi-branded cards (up 10% to $723 million) and Citi retail services (up 11% to $654 million). The increase in net credit losses primarily reflected volume growth and seasoning in both cards portfolios.
The net loan loss reserve build in the current quarter was $88 million, reflecting volume growth and seasoning in both cards portfolios (compared to a build of $117 million in the prior-year period).
For additional information on North America GCB’s retail banking, including commercial banking, and its Citi-branded cards and Citi retail services portfolios, see “Credit Risk—Consumer Credit” below.
For additional information on Citi retail services’ co-brand and private label credit card products with Sears, see “Forward-Looking Statements” below and “North America GCB” and “Risk Factors—Strategic Risks” in Citi’s 2018 Annual Report on Form 10-K.
 
2019 YTD vs. 2018 YTD
Year-to-date, North America GCB experienced similar trends to those described above. Net income decreased 4%, as higher cost of credit and higher expenses were partially offset by a lower effective tax rate and higher revenues.
Revenues increased 2%. Excluding the impact of the $150 million gain on the Hilton portfolio sale in the prior-year period, revenues increased 3%, reflecting higher revenues in Citi-branded cards and Citi retail services. Retail banking revenues were largely unchanged. Excluding mortgage revenues (decline of 11%), retail banking revenues increased 2%, driven by the same factors described above. Cards revenues increased 2% (4% excluding the Hilton gain). In Citi-branded cards, revenues increased 2% (6% excluding the Hilton gain), driven by the same factors described above. Citi retail services revenues increased 2%, driven by the same factors described above.
Expenses increased 1%, driven by the same factors described above.
Provisions increased 8%. Net credit losses increased 11%, driven by volume growth and seasoning in both cards portfolios. This increase was partially offset by a 19% decline in the net loan loss reserve build.






13



LATIN AMERICA GCB
Latin America GCB provides traditional retail banking, including commercial banking, and its Citi-branded card products to retail customers and small to mid-size businesses in Mexico through Citibanamex, one of Mexico’s largest banks.
At June 30, 2019, Latin America GCB had 1,459 retail branches in Mexico, with approximately 30.3 million retail banking customer accounts, $20.1 billion in retail banking loans and $29.2 billion in deposits. In addition, the business had approximately 5.4 million Citi-branded card accounts with $5.7 billion in outstanding card loan balances.

 
Second Quarter
 
Six Months
% Change
In millions of dollars, except as otherwise noted
2019
2018
% Change
2019
2018
Net interest revenue
$
1,017

$
1,013

 %
$
1,992

$
2,010

(1
)%
Non-interest revenue
415

362

15

821

705

16

Total revenues, net of interest expense
$
1,432

$
1,375

4
 %
$
2,813

$
2,715

4
 %
Total operating expenses
$
765

$
779

(2
)%
$
1,500

$
1,534

(2
)%
Net credit losses
$
285

$
278

3
 %
$
583

$
556

5
 %
Credit reserve build
10

33

(70
)
3

75

(96
)
Provision (release) for unfunded lending commitments
(1
)


(1
)
1

NM

Provision for benefits and claims
13

17

(24
)
19

37

(49
)
Provisions for credit losses and for benefits and claims (LLR & PBC)
$
307

$
328

(6
)%
$
604

$
669

(10
)%
Income from continuing operations before taxes
$
360

$
268

34
 %
$
709

$
512

38
 %
Income taxes
98

71

38

195

136

43

Income from continuing operations
$
262

$
197

33
 %
$
514

$
376

37
 %
Net income
$
262

$
197

33
 %
$
514

$
376

37
 %
Balance Sheet data and ratios (in billions of dollars)


 


 

 



Average assets
$
45

$
43

5
 %
$
45

$
44

2
 %
Return on average assets
2.34
%
1.84
%


2.30
%
1.72
%


Efficiency ratio
53

57



53

57



Average deposits
$
29.2

$
28.3

3

$
28.9

$
28.6

1

Net credit losses as a percentage of average loans
4.47
%
4.37
%


4.57
%
4.33
%


Revenue by business


 


 
 


Retail banking
$
1,015

$
993

2
 %
$
2,023

$
1,952

4
 %
Citi-branded cards
417

382

9

790

763

4

Total
$
1,432

$
1,375

4
 %
$
2,813

$
2,715

4
 %
Income from continuing operations by business


 


 

 



Retail banking
$
192

$
152

26
 %
$
389

$
286

36
 %
Citi-branded cards
70

45

56

125

90

39

Total
$
262

$
197

33
 %
$
514

$
376

37
 %
FX translation impact


 


 
 



Total revenues—as reported
$
1,432

$
1,375

4
 %
$
2,813

$
2,715

4
 %
Impact of FX translation(1)

13




(31
)


Total revenues—ex-FX(2)
$
1,432

$
1,388

3
 %
$
2,813

$
2,684

5
 %
Total operating expenses—as reported
$
765

$
779

(2
)%
$
1,500

$
1,534

(2
)%
Impact of FX translation(1)

6




(16
)


Total operating expenses—ex-FX(2)
$
765

$
785

(3
)%
$
1,500

$
1,518

(1
)%
Provisions for LLR & PBC—as reported
$
307

$
328

(6
)%
$
604

$
669

(10
)%
Impact of FX translation(1)

3




(9
)


Provisions for LLR & PBC—ex-FX(2)
$
307

$
331

(7
)%
$
604

$
660

(8
)%
Net income—as reported
$
262

$
197

33
 %
$
514

$
376

37
 %
Impact of FX translation(1)

2




(5
)


Net income—ex-FX(2)
$
262

$
199

32
 %
$
514

$
371

39
 %

14



(1)
Reflects the impact of FX translation into U.S. dollars at the second quarter of 2019 and year-to-date 2019 average exchange rates for all periods presented.
(2)
Presentation of this metric excluding FX translation is a non-GAAP financial measure.
NM Not meaningful

The discussion of the results of operations for Latin America GCB below excludes the impact of FX translation for all periods presented. Presentations of the results of operations, excluding the impact of FX translation, are non-GAAP financial measures. For a reconciliation of certain of these metrics to the reported results, see the table above.

2Q19 vs. 2Q18
Net income increased 32%, reflecting higher revenues, lower expenses and lower cost of credit.
Revenues increased 3% from the prior year. Excluding revenues associated with the sale of an asset management business in Mexico in the third quarter of 2018, revenues increased 5%, primarily driven by an increase in cards revenues and improved deposit spreads.
Retail banking revenues increased 1% compared to the prior-year period. Excluding the revenues associated with the asset management business, retail banking revenues increased 3%, as modest deposit growth (average deposits up 2%) and improved deposit spreads were partially offset by lower average loans (down 2%), reflecting the ongoing slowdown in overall economic growth and industry volumes in Mexico. Cards revenues increased 8%, primarily driven by continued volume growth, reflecting higher purchase sales (up 7%) and full-rate revolving loans, as well as higher rates. Average cards loans grew 2%.
Expenses decreased 3%, as efficiency savings more than offset ongoing investment spending and volume-driven growth.
Provisions decreased 7%, primarily driven by a lower net loan loss reserve build, reflecting lower volumes.
For additional information on Latin America GCB’s retail banking, including commercial banking, and its Citi-branded cards portfolios, see “Credit Risk—Consumer Credit” below.

 

2019 YTD vs. 2018 YTD
Year-to-date, Latin America GCB experienced similar trends to those described above. Net income increased 39%, driven by the same factors described above.
Revenues increased 5%, reflecting higher revenues in both retail banking and cards. Retail banking revenues increased 5%, driven by the same factors described above. Cards revenues increased 5%, driven by the same factors described above.
Expenses decreased 1%, driven by the same factors described above.
Provisions decreased 8%, driven by the same factors described above.










15



ASIA GCB
Asia GCB provides traditional retail banking, including commercial banking, and its Citi-branded card products to retail customers and small to mid-size businesses, as applicable. During the second quarter of 2019, Asia GCB’s most significant revenues in Asia were from Hong Kong, Korea, Singapore, India, Australia, Taiwan, Thailand, Philippines, Indonesia and Malaysia. Included within Asia GCB, traditional retail banking and Citi-branded card products are also provided to retail customers in certain EMEA countries, primarily Poland, Russia and the United Arab Emirates.
At June 30, 2019, on a combined basis, the businesses had 252 retail branches, approximately 16.1 million retail banking customer accounts, $70.8 billion in retail banking loans and $102.6 billion in deposits. In addition, the businesses had approximately 15.2 million Citi-branded card accounts with $19.2 billion in outstanding card loan balances.

 
Second Quarter
 
Six Months
% Change
In millions of dollars, except as otherwise noted(1)
2019
2018
% Change
2019
2018
Net interest revenue
$
1,225

$
1,226

 %
$
2,445

$
2,459

(1
)%
Non-interest revenue
690

639

8

1,355

1,335

1

Total revenues, net of interest expense
$
1,915

$
1,865

3
 %
$
3,800

$
3,794

 %
Total operating expenses
$
1,178

$
1,207

(2
)%
$
2,382

$
2,484

(4
)%
Net credit losses
$
176

$
170

4
 %
$
340

$
332

2
 %
Credit reserve build (release)
7

6

17

(8
)
(15
)
47

Provision (release) for unfunded lending commitments

1

(100
)

3

(100
)
Provisions for credit losses
$
183

$
177

3
 %
$
332

$
320

4
 %
Income from continuing operations before taxes
$
554

$
481

15
 %
$
1,086

$
990

10
 %
Income taxes
124

121

2

240

257

(7
)
Income from continuing operations
$
430

$
360

19
 %
$
846

$
733

15
 %
Noncontrolling interests
1

1


1

3

(67
)
Net income
$
429

$
359

19
 %
$
845

$
730

16
 %
Balance Sheet data and ratios (in billions of dollars)






 

 



Average assets
$
133

$
130

2
 %
$
133

$
131

2
 %
Return on average assets
1.29
%
1.11
%


1.28
%
1.12
%


Efficiency ratio
62

65

 
63

65



Average deposits
$
100.7

$
97.6

3

$
100.0

$
98.4

2

Net credit losses as a percentage of average loans
0.80
%
0.77
%


0.77
%
0.75
%


Revenue by business
 
 
 
 
 


Retail banking
$
1,208

$
1,142

6
 %
$
2,351

$
2,340

 %
Citi-branded cards
707

723

(2
)
1,449

1,454


Total
$
1,915

$
1,865

3
 %
$
3,800

$
3,794

 %
Income from continuing operations by business






 
 


Retail banking
$
323

$
264

22
 %
$
569

$
510

12
 %
Citi-branded cards
107

96

11

277

223

24

Total
$
430

$
360

19
 %
$
846

$
733

15
 %

16



FX translation impact



 
 


Total revenues—as reported
$
1,915

$
1,865

3
 %
$
3,800

$
3,794

 %
Impact of FX translation(2)

(42
)



(111
)


Total revenues—ex-FX(3)
$
1,915

$
1,823

5
 %
$
3,800

$
3,683

3
 %
Total operating expenses—as reported
$
1,178

$
1,207

(2
)%
$
2,382

$
2,484

(4
)%
Impact of FX translation(2)

(29
)



(77
)


Total operating expenses—ex-FX(3)
$
1,178

$
1,178

 %
$
2,382

$
2,407

(1
)%
Provisions for loan losses—as reported
$
183

$
177

3
 %
$
332

$
320

4
 %
Impact of FX translation(2)

(5
)



(13
)


Provisions for loan losses—ex-FX(3)
$
183

$
172

6
 %
$
332

$
307

8
 %
Net income—as reported
$
429

$
359

19
 %
$
845

$
730