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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 September 30, 20222023
OR
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| ☐ | 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) |
(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“large accelerated filer," "accelerated” “accelerated filer," "smaller” “smaller reporting company"company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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| 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 September 30, 2022: 1,936,852,8642023: 1,913,881,933
Available on the web at www.citigroup.com
CITIGROUP’S THIRD QUARTER 2022—2023—FORM 10-Q
| | | | | |
| OVERVIEW | |
MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS | |
| Executive Summary | |
| Summary of Selected Financial Data | |
SEGMENT REVENUES AND INCOME (LOSS)Segment Revenues and Income (Loss) | |
SEGMENT BALANCE SHEETSegment Balance Sheet | |
| Institutional Clients Group | |
| Personal Banking and Wealth Management | |
| Legacy Franchises | |
| Corporate/Other | |
| CAPITAL RESOURCES | |
MANAGING GLOBAL RISK TABLE OF
CONTENTS | |
| MANAGING GLOBAL RISK | |
SIGNIFICANT ACCOUNTING POLICIES AND
SIGNIFICANT ESTIMATES | |
DISCLOSURE CONTROLS AND
PROCEDURES | |
DISCLOSURE PURSUANT TO SECTION 219 OF
THE IRAN THREAT REDUCTION AND SYRIA
HUMAN RIGHTS ACT | |
| FORWARD-LOOKING STATEMENTS | |
FINANCIAL STATEMENTS AND NOTES
TABLE OF CONTENTS | |
| CONSOLIDATED FINANCIAL STATEMENTS | |
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS (UNAUDITED) | |
UNREGISTERED SALES OF EQUITY SECURITIES,
REPURCHASES OF EQUITY SECURITIES AND
DIVIDENDS | |
| OTHER INFORMATION | |
| GLOSSARY OF TERMS AND ACRONYMS | |
OVERVIEW
This Quarterly Report on Form 10-Q should be read in conjunction with Citigroup’s Annual Report on Form 10-K for the year ended December 31, 2021 and Citigroup’s Current Report on2022 (referred to herein as Citi’s 2022 Form 8-K dated May 10, 2022 (as amended by a Current Report on Form 8-K/A dated May 10, 2022)10-K), with Historical Consolidated Financial Statements and Notes, and Management’s Discussion and Analysis of Financial Condition and Results of Operations and other Form 10-K sections (such Current Report on Form 8-K together with Citigroup’s 2021 Annual Report on Form 10-K, collectively referred to as the 2021 Form 10-K). Such Current Report on Form 8-K was conformed to reflect changes in Citigroup’s operating segments and reporting units from those contained in Citi’s 2021 Annual Report on Form 10-K, included as an exhibit thereto. This Quarterly Report on Form 10-Q should also be read in conjunction with Citigroup’s Quarterly Report on Form 10-Q for the quarter ended March 31, 20222023 (First Quarter of 20222023 Form 10-Q), and Citigroup’s Quarterly Report on Form 10-Q for the quarter ended June 30, 20222023 (Second Quarter of 20222023 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, 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 and accessible free of charge on Citi’s website by clicking on the “Investors” tab and selecting “SEC Filings,” then “Citigroup Inc.” The SEC’s website also contains these filings and other information regarding Citi at www.sec.gov.
Certain reclassifications and updates have been made to the prior periods’ financial statements and disclosures to conform to the current period’s presentation. For additional information, see footnote 1 to “Summary of Selected Financial Data” and “Operating Segment and Reporting Unit—Income (Loss) and Revenues” below and Notes 1 and 3.
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 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 20212022 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.
As of the first quarter of 2022,September 30, 2023, Citigroup implemented changes in its operating segments and reporting units to reflect its recent strategic refresh (for additional information, see “Strategic Refresh—Market Exit and Planned Revision to Reporting Structure” in Citi’s 2021 Form 10-K). As a result, Citigroup iswas managed pursuant to three operating segments: segments—Institutional Clients Group,Personal Banking and Wealth Management andLegacy Franchises, with—across four regions. Activities not assigned to the remaining operationsoperating segments were included inCorporate/Other.Other.
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Citigroup Operating Segments |
| | | | | | | | | |
| | | | | | | | | |
Institutional
Clients Group
(ICG) | | | Personal Banking
and Wealth Management
(PBWM) | | | Legacy Franchises |
| | | |
•Services
–Treasury and trade solutions (TTS)
–Securities services
•Markets
–Equity markets
–Fixed income markets
•Banking
–Investment banking
–Corporate lending
| | | •U.S. Personal Banking
–Cards
◦Branded cards
◦Retail services
–Retail banking
•Global Wealth Management
(Global Wealth)
–Private bank
–Wealth at Work
–Citigold
| | | •Asia Consumer Banking
(Asia Consumer)
–Retail banking and cards for the remaining 11 exit markets (Bahrain, China, India, Indonesia, Korea, Malaysia(1), Poland, Russia, Taiwan, Thailand(1) and Vietnam)
•Mexico Consumer Banking (Mexico Consumer) and Mexico Small Business and Middle-Market Banking (Mexico SBMM)
–Retail banking and cards
•Legacy Holdings Assets
–Certain North America consumer mortgage loans
–Other legacy assets
|
| | | | | | | | | |
| | | | Corporate/Other | | | | |
|
•Corporate Treasury managed portfolios
•Operations and technology
•Global staff functions and other corporate expenses
•Discontinued operations
| |
For a further description of the operating segments and the products and services they provided, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 3 to the Consolidated Financial Statements below. The following areresults for the four regions in which Citigroup operates. The regional results areoperated as of September 30, 2023 were fully reflected in the three operating segments and Corporate/Other above..
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Citigroup Regions(2)
|
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| | | | | | | | | | | |
North
America | | Europe,
Middle East
and Africa
(EMEA)
| | | Latin
America | | Asia |
Planned Revision to Operating Model and Financial Reporting StructureAs part of Citi’s overall simplification, Citi previously disclosed that as of the fourth quarter of 2023 it will be making changes to its operating model to simplify the Company and further align its organizational structure with its business strategy.
Citi’s new operating model includes the elimination of the ICG, PBWM and Legacy Franchises operating segments and will result in five new reportable operating segments—Services, Markets, Banking, Wealth and U.S. Personal Banking—and a new financial reporting structure, effective as of the end of the fourth quarter of 2023. Activities not assigned to the reportable operating segments will be included in a new All Other category, which will consist of Legacy Franchises and Corporate/Other, as outlined below.
Citi will also consolidate its regional structure from four to two regions, consisting of North America and a newly created international group. Citi expects to incur charges through the first half of 2024 as additional phases of its overall simplification initiatives are finalized and implemented. For additional information on expenses, see “Executive Summary—Expenses” below.
(1) Citi completed the sales of its Thailand and Malaysia consumer businesses on November 1, 2022. See “Executive Summary” below.
(2) 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
Third Quarter of 2022—2023—Results Demonstrated ContinuedStrength of Diversified Business Model and Progress Toward Achieving Priorities
As described further throughout this Executive Summary, during the third quarter of 2022:2023:
•Citi’s revenues increased 6%9% versus the prior-year period, primarily driven by a gain on sale of Citi’s Philippines consumer business versus a loss on sale of Citi’s Australia consumer business in the prior-year period. Excluding Asia Consumer divestiture-related impacts in both the current and prior-year periods (see “Third Quarter of 2022 Results Summary”“Legacy Franchises” below), revenues decreased 1%increased 10%, asdriven by higher net interest income was more than offset by lowerand non-interest revenues.
•Citi’s expenses increased 8%6% 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 Citi’s transformation, including risk, controls, data and finance programs (with approximately 25% of these investments related to technology); business-led investments and volume-related expenses; other risk and control investments;controls, the impacts of inflation and inflation,severance. The increase was partially offset by productivity savings and expense reductions from the impact of foreign exchange translation.exited markets and continued wind-downs (see “Expenses” below).
•Citi’s cost of credit was $1.4$1.8 billion reflecting a net build in the allowance for credit losses (ACL) for loans and unfunded commitments of $0.4 billion, primarily due to consumer loan growth and a deterioration in macroeconomic forecasts primarily impacting the corporate portfolio, compared to a net ACL release of $1.2versus $1.4 billion in the prior-year period. The increase was primarily driven by the ongoing normalization in net credit losses and volume growth in Branded cards and Retail services in PBWM.
•Citi returned $1.0$1.5 billion to common shareholders in the form of dividends.dividends and share repurchases.
•Citi’s Common Equity Tier 1 (CET1) Capital ratio under the Basel III Standardized Approach increased to 13.6% as of September 30, 2023, compared to 12.3% as of September 30, 2022 compared to 11.7% as of September 30, 2021 (for additional information, see(see “Capital Resources” below). This compares to Citi’s required regulatory CET1 Capital ratio is 11.5%of 12.3% as of October 1, 2022 and will be 12% as of January 1, 2023 both under the Basel III Standardized Approach. Due to the increases in regulatory capital requirements, as well as macroeconomic uncertainty, Citi has continued to pause common share repurchases as it continues to build capital.
•Citi continued to make progress on its consumer banking business divestitures in the currentthird quarter of 2023, including completing the saleclosing of its Philippines consumer business, which resulted in a regulatory capital benefit of approximately $0.7 billion,Taiwan sale transaction and working toward the closing of its Indonesia sale transaction in the other five previously signed sale transactions and the wind-downsfourth quarter of Korea and Russia (for2023. (For additional information on the progress of Citi’s wind-down in Russia,other exits and wind-downs, see “Update Regarding Citi’s Operations in Russia” below). “Legacy Franchises” below.)
•As previously disclosed, Citi announced Citi completedit will be making changes to its operating model to simplify the salesCompany and further align its organizational structure with its business strategy. This new operating model will elevate the leaders of Citi’s five key businesses and eliminate management layers, and reflect the next step in Citi’s work to implement its Thailandstrategic and Malaysia consumer businesses on November 1, 2022, which together are expectedother initiatives. For additional information, see “Planned Revision to result in a regulatory capital benefit of approximately $1 billion.Operating Model and Financial Reporting Structure” above.
Third Quarter of 20222023 Results Summary
Citigroup
Citigroup reported net income of $3.5 billion, or $1.63 per share,$3,546 million in the current quarter, up 2%, compared to net income of $4.6 billion,$3,479 million in the prior-year period, or $2.15$1.63 per share, inunchanged from the prior-year period. The decrease in net income increase was primarily driven by the higher cost of credit resulting from loan growth in Personal Banking and Wealth Management (PBWM) and higher operating expenses,revenues, partially offset by the higher revenues.expenses, the higher cost of credit and a higher effective tax rate. Citigroup’s effective tax rate was 20.0%25% versus 20% in the prior-year period, largely driven by the geographic mix of earnings in the current quarter versus 20.4% in the prior-year period (for additional information, see(see “Income Taxes” below). Earnings per share (EPS) decreased 24%, reflecting the decrease in net income, partially offset by a 4% decline in average diluted shares outstanding.
Results for the currentthird quarter of 2023 includedLegacy Franchises Asia Consumer divestiture-related impacts of approximately $520$299 million in earnings before taxes (approximately $256($214 million after-tax), primarily driven by. See “Legacy Franchises” below for details about the Philippines and other Asia consumer exits, which primarily consisted of (i) an approximate $616 million Philippines gain on sale recorded in Other revenue and (ii) an approximate $107 million of aggregate divestiture-related costs, which,impacts. These divestiture-related impacts, collectively, had a $0.13 positive$0.11 beneficial impact on EPS.earnings per share (EPS) in the current quarter. Excluding these divestiture-related impacts, EPS was $1.50 in the current quarter. Third quarter of 2021 results included Asia Consumer divestiture-related impacts of $(680) million (approximately $(580) million after-tax) within Legacy Franchises, primarily driven by a loss on sale of the Australia consumer business.$1.52. (As used throughout this Form 10-Q, Citi’s results of operations and financial condition excluding the impact of the Philippines gain on sale and other Asia Consumer divestiture-related impacts are non-GAAP financial measures.)
Results for the third quarter of 2022 included divestiture-related impacts of $519 million in earnings before taxes ($256 million after-tax). See “Legacy Franchises” below for details about the divestiture-related impacts. These divestiture-related impacts, collectively, had a $0.13 beneficial impact on EPS in the prior-year period. Excluding these divestiture-related impacts, EPS was $1.50.
Citigroup revenues of $18.5$20.1 billion in the third quarter of 2023 increased 6%9% on a reported basis, and 10% excluding divestiture-related impacts versus the prior-year period. Excluding the gain on sale of the Philippines consumer businessThe increase in the quarter of approximately $0.6 billion and the loss on sale of the Australia consumer business in the prior-year period of approximately $0.7 billion, revenues were down 1%, as the impact of higher interest ratesreflected strength across businesses and strong loan growth in PBWM were more than offset by declines in Investment bankingServices and Markets in Institutional Clients Group(ICG) and Asia investment product revenuesU.S. Personal Banking in GlobalPersonal Banking and Wealth Management (Global Wealth)(PBWM), as well as growth in Banking in ICG. The increase was partially offset by a revenue reduction from the exited markets and continued wind-downs in Legacy Franchises.
Citigroup’s end-of-period loans were $646$666 billion, downup 3% versus the prior-year period, largely driven by the impact of foreign exchange translation and lower balancesgrowth in Legacy Franchises.The decline in Legacy Franchises primarily reflected the reclassification of loans to Other assets to reflect held-for-sale (HFS) accounting, as a result of the signing of sale agreements for consumer franchises in Asia and EMEA, as well as the impact of the Korea wind-down.U.S. Personal Banking.
Citigroup’s end-of-period deposits were approximately $1.3 trillion, down 3% versus the prior-year period,period. The decline in deposits was largely driven by declinesdue to a reduction in Services, reflecting monetary tightening, a shift of deposits to higher-yielding investments in Global Wealth Management (Global Wealth) and a reduction of institutional certificates of deposit in Legacy FranchisesCorporate/Other. For additional information about Citi’s deposits by business, including drivers and the impactdeposit trends, see each respective business’s results of foreignoperations and “Liquidity Risk—Deposits” below.
exchange translation, partially offset by the issuance of institutional certificates of deposit, reflected in Corporate/Other, as Citigroup continued to diversify its funding profile.Expenses
Expenses
Citigroup’s operating expenses of $12.7$13.5 billion increased 8% versus6% from the prior-year period, both on a reported basis and excluding divestiture-related impacts. The higher expenses largely driven byreflected continued investments in Citi’s transformation, business-led investments and volume-related expenses, other risk and control investmentscontrols, the impact of inflation and inflation,severance, partially offset by productivity savings and expense reductions from the benefit of foreign exchange translation. As discussed above, reported expenses included approximately $107 million of divestiture-related costs. Excluding these divestiture-related costs, expenses increased 7% versus the prior-year period, largely drivenexited markets and wind-downs in Legacy Franchises. Expenses also continued to be impacted by the following:
•Approximately 2% was driven by transformation investments, with about two-thirds related to the risk, controls, data and finance programs (approximately 25% of the program investments were related to technology).
•Approximately 1% was driven by business-led investments as Citi continues to hire commercial and investment bankers as well as client advisers in wealth, and continues to invest in the client experience as well as front-office platforms and onboarding.
•Approximately 1% was driven by higher volume-related expenses across both PBWM and ICG.
•Approximately 3% was driven by other risk and control investments and inflation, partially offset by productivity savings and the impact of foreign exchange translation.
As previously disclosed, Citi expects to continue to incur higher expenses duringin the remainderfourth quarter of 2022, compared2023, including additional severance costs related to the prior-year period, reflecting ongoing transformation-related, business-ledits organizational and other risk and control investments and inflation.management simplification initiatives.
Cost of Credit
Citi’s total provisions for credit losses and for benefits and claims was a cost of $1.4$1.8 billion, compared to a benefit of $0.2$1.4 billion in the prior-year period. The higher cost of creditThis increase was driven by thehigher net credit losses (see below), partially offset by a lower net build in the allowance for credit losses (ACL)ACL for loans and unfunded commitments and other provisions.
The net build of $0.4 billion,$203 million in the ACL for loans and unfunded lending commitments and other provisions in the current quarter was primarily driven by growth in Branded cards and Retail services card balances in PBWM. This compared to a net build of $478 million in the ACL release of $1.2 billionfor loans and unfunded lending commitments and other provisions in the prior-year period, partially offset by lower net credit losses. The net ACL build was primarily due to cards loan growth in PBWM and a deterioration in macroeconomic forecasts primarily impacting the corporate portfolio.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 $0.9$1.6 billion decreased 8% versusincreased 85% from the prior-year period. Consumer net credit losses decreased 4% to $881 million, primarily driven by Legacy Franchises (down 44% to $158 million)of $1.6 billion increased 79%, partially offset by an increase in PBWM. The lower net credit losses in Legacy Franchises primarily reflected improved delinquencies and the reclassification of loans to reflect HFS accounting as a result of the signing of sale agreements for consumer franchises in Asia and EMEA. The increase in net credit losses in PBWM was driven by Retail services (up 32% to $315 million),
reflecting ongoing normalization, from historically low levels, partially offset by lower net credit lossesparticularly in Branded cards (down 3% to $348 million).and Retail services. Corporate net credit losses decreasedincreased to $6$58 million from $39$6 million in the prior-year period.
Citi expects to incur higher year-over-year net credit losses for the fourth quarter of 2023, primarily driven by ongoing normalization, particularly in the cards businesses in PBWM. Net credit losses in the cards businesses are expected to reach pre-pandemic levels by the end of 2023.
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 13.6% as of September 30, 2023, compared to 12.3% as of September 30, 2022, compared to 11.7% as of September 30, 2021, based on the Basel III Standardized Approach for determining risk-weighted assets (RWA). The increase was primarily driven by net income and impacts from the impacts related to the closingsales of the Australia and Philippines consumer business sales, andcertain Asia Consumer Banking (Asia Consumer) businesses, as well as business actions, including a reduction in RWA, partially offset by interest rate impactsthe payment of common dividends and share repurchases.
During the third quarter of 2023, Citi repurchased $0.5 billion of common shares and paid $1.0 billion of common dividends (see “Unregistered Sales of Equity Securities, Repurchases of Equity Securities and Dividends” below). Citi will continue to assess common share repurchases on Citigroup’s investment portfolioa quarter-by-quarter basis given uncertainty regarding regulatory capital requirements. For additional information, see “Capital Resources—Regulatory Capital Standards and the return of capital to common shareholders. The increase in Citi’s CET1 Capital ratio was also partially offset by the impact of adopting the Standardized Approach for Counterparty Credit Risk (SA-CCR) on January 1, 2022.Developments” below.
Citigroup’s Supplementary Leverage ratio as of September 30, 20222023 was 5.7%6.0%, compared to 5.8%5.7% as of September 30, 2021.2022, and 5.8% as of December 31, 2022. The decreaseincrease was driven by lowerhigher Tier 1 Capital from net income, partially offset by a decreasean 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$2.4 billion decreased 30% versus the prior-year period, largelyincreased 12%, primarily driven by lowerhigher revenues, partially offset by higher expenses and modestly higher cost of credit. ICG operating expenses of $6.5$7.2 billion increased 10%, primarily driven by continued investments in Citi’s transformation, business-led investmentsrisks and controls and volume-related expenses, partially offset by productivity savings and foreign exchange translation.savings.
ICG revenues of $9.5$10.6 billion decreased 5%increased 12% (including lossesgain (loss) on loan hedges) versus the prior-year period, as strong revenue, driven by growth inacross Services, was more thanMarkets and Banking, partially offset by lower revenues across Markets and Banking. Resultsan approximate $180 million net impact from a currency devaluation in Argentina on Citi’s net investment in the country. Revenues also included lossesa loss on loan hedges of $56$47 million in the third quarter of 2023, compared to $46with a loss on loan hedges of $56 million in the prior-year period.
Services revenues of $4.2$4.7 billion increased 33% versus the prior-year period. Treasury and trade solutions (TTS)13%. TTS revenues of $3.2$3.6 billion increased 40%12%, driven by 61%17% growth in net interest income and 8%1% growth in non-interest revenue. The strong performanceincrease in TTS was driven by business actions, including balance sheet optimization, deepening of relationships with existing clients and an increase in new clients across segments, as well as the benefit of higher interest rates. Securities services revenues of $968 million increased 15%, as net interest income increased 73%,was primarily driven by higher interest rates and deposit volume growth. The increase in non-interest revenue was driven by continued growth in underlying drivers, primarily a 16% increase in cross-border transaction value, a 6% increase in U.S. dollar clearing volume and an 8% increase in commercial card spend volume. The increase in non-interest revenue was largely offset by the impact from the currency devaluation in Argentina on Citi’s net investment in the country. Securities services revenues of $1.1 billion increased 16%, largely driven by higher net interest income across currencies,currencies.
Markets revenues of $4.5 billion increased 10%, driven by an increase of 14% in Fixed income markets, largely reflecting strength in rates and currencies. The increase was partially offset by a 6% decrease in non-interest revenue due to the impact of lower market valuations.
Markets revenues of $4.1 billion were down 7% versus the prior-year period, largely driven by lower client activity levels3% in Equity markets, driven by a decline in equity derivatives, partially offset by growth in equity cash and spread products and business actions, including a reduction in RWA. Fixed income marketsprime services.
revenues of $3.1 billion increased 1%, as strength in rates and currencies was largely offset by continued headwinds in spread products. Equity markets revenues of $1.0 billion were down 25%, largely reflecting reduced client activity in equity derivatives relative to an unusually strong quarter in the prior-year period.
Banking revenues of $1.2$1.4 billion decreased 50% versus the prior-year period,increased 18%, including the lossesgain (loss) on loan hedges in the current quarter and the prior-year period. Excluding the lossesgain (loss) on loan hedges, Banking revenues of $1.3$1.5 billion decreased 49%increased 17%, driven by lowerhigher revenues in both Investment banking and Corporate lending.banking. Investment banking revenues of $631$844 million decreased 64%increased 34%, as heightened macroeconomic uncertaintyreflecting increased client activity in debt underwriting and market volatility continued toan absence of certain realized and unrealized gains (losses) in the prior-year period. Corporate lending revenues increased 2%, including the impact client activity.of the gain (loss) on loan hedges. Excluding lossesthe impact of the gain (loss) on loan hedges, Corporate lending revenues decreased 11%, driven by lower volumesincreased 1% versus the prior-year period. (As used throughout this Form 10-Q, Citi’s results of operations and higher hedging costs. 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 third quarter of 2022,2023, see “Institutional Clients Group” below.
Personal Banking and Wealth Management
PBWM net income of $792$803 million decreased 58% versus the prior-year period,increased 1%, as higher revenues were largely drivenoffset by a net ACL release in the prior-year period, versus a net ACL build in the current quarter.higher cost of credit and higher expenses. PBWM operating expenses of $4.1$4.3 billion increased 13%5%, primarilylargely driven by continued investments in Citi’s transformation, other riskrisks and control initiatives, business-led investmentscontrols and volume-related expenses,severance, partially offset by productivity savings.
PBWM revenues of $6.2$6.8 billion increased 6% versus the prior-year period, as10%, driven by growth in net interest income, growth, driven byreflecting strong loan growth across Branded cards andin U.S. Personal Banking, as well as higher non-interest revenue, primarily due to lower partner payments in Retail services and higher interest rates, was partially offset by a decline in non-interest revenue, driven by lower investment feeproduct revenues in Global Wealth and higher partner payments in Retail services.Wealth.
U.S. Personal Banking revenues of $4.3$4.9 billion increased 10% versus the prior-year period.13%, primarily driven by higher revenues in cards, partially offset by lower Retail banking revenues. Branded cards revenues of $2.3$2.5 billion increased 10%12%, primarily driven by the higher net interest income. In Branded cards, new account acquisitions increased 10%, card spend volumes increased 14% andincome, as average loans increased 12%. Retail services revenues of $1.4$1.7 billion increased 12%21%, primarily driven by the higher net interest income partially offset byfrom loan growth, as well as the higherlower partner payments. Retail banking revenues of $642$624 million decreased 3%, largely driven by the transfer of certain relationships and the associated deposits to Global Wealth, partially offset by higher deposit spreads.
Global Wealth revenues of $1.9 billion increased 2%, primarily driven by higher investment product revenues across all regions, the benefit of the transfer of certain relationships and the associated deposits from Retail banking, and higher interest rates and modest deposit growth.lending revenue.
Global Wealth revenues of $1.9 billion decreased 2% versus the prior-year period, as investment fee headwinds, particularly in Asia, more than offset net interest income growth from higher interest rates. For additional information on the results of operations of PBWM for the third quarter of 2022,2023, see “Personal Banking and Wealth Management” below.
Legacy Franchises
Legacy Franchises net income was $316$125 million, compared to a net loss of $200$316 million in the prior-year period, primarily reflecting the Philippines gain on sale in the quarterdriven by lower revenues and the Australia loss on sale in the prior-year period.higher cost of credit, partially offset by lower expenses. Legacy Franchises operating expenses of $1.8 billion increased 6%decreased 3%, primarily driven by divestiture-related costs.the impact of exited markets and continued wind-downs, partially offset by separation costs and the impact of FX translation in Mexico
Consumer, Small Business and Middle-Market Banking (Mexico Consumer/SBMM).
Legacy Franchises revenues of $2.6$2.2 billion increased 66% versus the prior-year period, primarilydecreased 13%, largely driven by the Philippineslower gain on sale versusimpacts in Asia Consumer and reductions from exited markets and continued wind-downs. The decrease was partially offset by higher revenues in Mexico Consumer/SBMM, largely reflecting the Australia loss on sale in the prior-year period, as well as the impactsimpact of the Korea wind-downFX translation, higher interest rates and the loss of revenues from the exits of the Australia and Philippines consumer businesses. volume growth.
For additional information on the results of operations of Legacy Franchises for the third quarter of 2022,2023, see “Legacy Franchises” below.
Corporate/Other
Corporate/Other net income was $209$189 million, compared to a net loss of $143$209 million in the prior-year period, largely reflectingdriven by lower income tax benefits, partially offset by higher revenues and lower operating expenses. Corporate/Other operating expenses of $237 million decreased from $286 million decreased 35%.in the prior-year period, primarily driven by lower consulting expenses.
Corporate/Other revenues of $299$500 million increased from $68$299 million in the prior-year period, largely driven by higher net revenue from the investment portfolio due to higher interest rates, partially offset byabsence of prior-year mark-to-market losses, primarily related to retained interchange litigation risk associated with shares of Visa B common stock that Citi previously sold.
For additional information on the results of operations of Corporate/Other for the third quarter of 2022,2023, see “Corporate/Other” below.
Update Regarding Citi’s Operations in Russia
As part of Citi’s previously announced intent to reduce its operations in and exposure to Russia, Citi disclosed its decision to wind down its Russia consumer and local commercial banking businesses, including the pursuit of portfolio sales. On October 28, 2022, Citi entered into an agreement to sell a consumer loan portfolio, including a referral agreement to transfer a portfolio of credit card loans. Additionally, Citi disclosed that it will be ending nearly all of the institutional banking services it offers in Russia by the end of the first quarter of 2023. Going forward, Citi’s only operations in Russia will be those necessary to fulfill its remaining legal and regulatory obligations. For additional information about Citi’s operations and exposure in Russia, see “Institutional Clients Group,” “Legacy Franchises” and “Managing Global Risk—Other Risks—Country Risk—Russia” below.
Macroeconomic and Other Risks and Uncertainties
Various geopolitical, macroeconomic and macroeconomicregulatory challenges and uncertainties continue to adversely impact economic conditions in the U.S. and globally. Theglobally, including continued elevated interest rates and inflation, economic and geopolitical challenges related to China, the Russia–Ukraine war and escalating tensions and conflicts in the Middle East, and a potential U.S. government shutdown. These and other countries have continued to experience significantly elevated levels of inflation, resulting in central banks implementing a series of interest rate increases, with additional increases expected in the near term. In addition to the humanitarian crisis, the war in Ukraine has caused supply shocks in energy and food markets. Disruptions in global supply chains have continued and the COVID-19 pandemic continues to evolve.
An economic rebound in China faces constraints given the potential for future pandemic-related lockdowns, the amount of leverage in its economy and stress in the property sector. All of these factors have caused declines inadversely affected financial markets, negatively impacted global economic growth rates contributed to sharply lower consumer confidence and further increased theresulted in a continued risk of recession in Europe, the U.S., Europe and other regions and countries. TheseIn addition, these and other factors could adversely affect Citi’s customers, clients, businesses, funding costs, cost of credit and overall results of operations and financial condition during the remainderfourth quarter of 2022.2023.
As previously disclosed 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. The FDIC is proposing to collect the special assessment at an annual rate of approximately 12.5 basis points of uninsured U.S. deposits, over eight quarterly assessment periods beginning in 2024. Citi is likely to incur up to a $1.5 billion pretax charge, impacting operating expenses, if the final rule for the FDIC special assessment, which is expected before the end of 2023, is enacted as proposed.
Additionally, 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 that, if finalized as proposed, would have a material impact on Citi’s current capital position. For additional information, see “Capital Resources—Regulatory Capital Standards and Developments—Basel III Revisions” 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 2022,2023, see “Third 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” and “Managing Global Risk” in Citi’s 20212022 Form 10-K.
CITI’S CONSENT ORDER COMPLIANCE
As previously disclosed, in 2021, Citi submitted its plans to address the consent orders to both the Federal Reserve Board and Office of the Comptroller of the Currency (OCC). Citi continues to work constructively with the regulators, and will continue to reflect their feedback by submitting updates to its project plans and on execution progress for the consent orders. For additional information about the consent orders, see “Citi’s Consent Order Compliance” and “Risk Factors—Compliance Risks” in Citi’s 2021 Form 10-K.
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RESULTS OF OPERATIONS
SUMMARY OF SELECTED FINANCIAL DATA
Citigroup Inc. and Consolidated Subsidiaries
| | | Third Quarter | | Nine Months | | | Third Quarter | | Nine Months | |
| In millions of dollars, except per share amounts | In millions of dollars, except per share amounts | 2022 | 2021(1) | % Change | 2022 | 2021(1) | % Change | In millions of dollars, except per share amounts | 2023 | 2022 | % Change | 2023 | 2022 | % Change |
| Net interest income | Net interest income | $ | 12,563 | | $ | 10,691 | | 18 | % | $ | 35,398 | | $ | 31,675 | | 12 | % | Net interest income | $ | 13,828 | | $ | 12,563 | | 10 | % | $ | 41,076 | | $ | 35,398 | | 16 | % |
| Non-interest revenue | Non-interest revenue | 5,945 | | 6,756 | | (12) | | 21,934 | | 23,192 | | (5) | | Non-interest revenue | 6,311 | | 5,945 | | 6 | | 19,946 | | 21,934 | | (9) | |
| Revenues, net of interest expense | Revenues, net of interest expense | $ | 18,508 | | $ | 17,447 | | 6 | % | $ | 57,332 | | $ | 54,867 | | 4 | % | Revenues, net of interest expense | $ | 20,139 | | $ | 18,508 | | 9 | % | $ | 61,022 | | $ | 57,332 | | 6 | % |
| Operating expenses | Operating expenses | 12,749 | | 11,777 | | 8 | | 38,307 | | 34,661 | | 11 | | Operating expenses | 13,511 | | 12,749 | | 6 | | 40,370 | | 38,307 | | 5 | |
| Provisions for credit losses and for benefits and claims | Provisions for credit losses and for benefits and claims | 1,365 | | (192) | | NM | 3,394 | | (3,313) | | NM | Provisions for credit losses and for benefits and claims | 1,840 | | 1,365 | | 35 | | 5,639 | | 3,394 | | 66 | |
| Income from continuing operations before income taxes | Income from continuing operations before income taxes | $ | 4,394 | | $ | 5,862 | | (25) | % | $ | 15,631 | | $ | 23,519 | | (34) | % | Income from continuing operations before income taxes | $ | 4,788 | | $ | 4,394 | | 9 | % | $ | 15,013 | | $ | 15,631 | | (4) | % |
| Income taxes | Income taxes | 879 | | 1,193 | | (26) | | 3,002 | | 4,680 | | (36) | | Income taxes | 1,203 | | 879 | | 37 | | 3,824 | | 3,002 | | 27 | |
| Income from continuing operations | Income from continuing operations | $ | 3,515 | | $ | 4,669 | | (25) | % | $ | 12,629 | | $ | 18,839 | | (33) | % | Income from continuing operations | $ | 3,585 | | $ | 3,515 | | 2 | % | $ | 11,189 | | $ | 12,629 | | (11) | % |
| Income (loss) from discontinued operations, net of taxes | Income (loss) from discontinued operations, net of taxes | (6) | | (1) | | NM | (229) | | 7 | | NM | Income (loss) from discontinued operations, net of taxes | 2 | | (6) | | NM | — | | (229) | | 100 | |
| Net income before attribution to noncontrolling interests | $ | 3,509 | | $ | 4,668 | | (25) | % | $ | 12,400 | | $ | 18,846 | | (34) | % | |
| Net income before attribution of noncontrolling interests | | Net income before attribution of noncontrolling interests | $ | 3,587 | | $ | 3,509 | | 2 | % | $ | 11,189 | | $ | 12,400 | | (10) | % |
| Net income attributable to noncontrolling interests | Net income attributable to noncontrolling interests | 30 | | 24 | | 25 | | 68 | | 67 | | 1 | | Net income attributable to noncontrolling interests | 41 | | 30 | | 37 | | 122 | | 68 | | 79 | |
| Citigroup’s net income | Citigroup’s net income | $ | 3,479 | | $ | 4,644 | | (25) | % | $ | 12,332 | | $ | 18,779 | | (34) | % | Citigroup’s net income | $ | 3,546 | | $ | 3,479 | | 2 | % | $ | 11,067 | | $ | 12,332 | | (10) | % |
| Earnings per share | Earnings per share | | | | | Earnings per share | | | | |
| Basic | Basic | | | | | Basic | | | | |
| Income from continuing operations | Income from continuing operations | $ | 1.64 | | $ | 2.17 | | (24) | % | $ | 5.99 | | $ | 8.70 | | (31) | % | Income from continuing operations | $ | 1.64 | | $ | 1.64 | | — | % | $ | 5.19 | | $ | 5.99 | | (13) | % |
| Net income | Net income | 1.64 | | 2.17 | | (24) | | 5.87 | | 8.70 | | (33) | | Net income | 1.64 | | 1.64 | | — | | 5.19 | | 5.87 | | (12) | |
| Diluted | Diluted | | | | Diluted | | | |
| Income from continuing operations | Income from continuing operations | $ | 1.63 | | $ | 2.15 | | (24) | % | $ | 5.95 | | $ | 8.64 | | (31) | % | Income from continuing operations | $ | 1.63 | | $ | 1.63 | | — | % | $ | 5.14 | | $ | 5.95 | | (14) | % |
| Net income | Net income | 1.63 | | 2.15 | | (24) | | 5.84 | | 8.65 | | (32) | | Net income | 1.63 | | 1.63 | | — | | 5.14 | | 5.84 | | (12) | |
| Dividends declared per common share | Dividends declared per common share | 0.51 | | 0.51 | | — | | 1.53 | | 1.53 | | — | | Dividends declared per common share | 0.53 | | 0.51 | | 4 | | 1.55 | | 1.53 | | 1 | |
| Common dividends | Common dividends | $ | 1,001 | | $ | 1,040 | | (4) | % | $ | 3,025 | | $ | 3,176 | | (5) | % | Common dividends | $ | 1,038 | | $ | 1,001 | | 4 | % | $ | 3,042 | | $ | 3,025 | | 1 | % |
Preferred dividends(2)(1) | Preferred dividends(2)(1) | 277 | | 266 | | 4 | | 794 | | 811 | | (2) | | Preferred dividends(2)(1) | 333 | | 277 | | 20 | | 898 | | 794 | | 13 | |
| Common share repurchases | Common share repurchases | — | | 3,000 | | NM | 3,250 | | 7,600 | | (57) | | Common share repurchases | 500 | | — | | NM | 1,500 | | 3,250 | | (54) | |
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 | In millions of dollars, except per share amounts,
ratios and direct staff | Third Quarter | | Nine Months | | In millions of dollars, except per share amounts,
ratios and direct staff | Third Quarter | | Nine Months | |
| 2022 | 2021(1) | % Change | 2022 | 2021(1) | % Change | 2023 | 2022 | % Change | 2023 | 2022 | % Change |
| At September 30: | At September 30: | | | | At September 30: | | | |
| Total assets | Total assets | $ | 2,381,064 | | $ | 2,361,876 | | 1 | % | | | Total assets | $ | 2,368,477 | | $ | 2,381,064 | | (1) | % | | |
| Total deposits | Total deposits | 1,306,486 | | 1,347,528 | | (3) | | | | Total deposits | 1,273,506 | | 1,306,486 | | (3) | | | |
| Long-term debt | Long-term debt | 253,068 | | 258,274 | | (2) | | | | Long-term debt | 275,760 | | 253,068 | | 9 | | | |
| Citigroup common stockholders’ equity | Citigroup common stockholders’ equity | 179,565 | | 182,880 | | (2) | | | | Citigroup common stockholders’ equity | 190,008 | | 179,565 | | 6 | | | |
| Total Citigroup stockholders’ equity | Total Citigroup stockholders’ equity | 198,560 | | 200,875 | | (1) | | | | Total Citigroup stockholders’ equity | 209,503 | | 198,560 | | 6 | | | |
| Average assets | Average assets | 2,399,446 | | 2,346,025 | | 2 | | $ | 2,384,513 | | $ | 2,334,876 | | 2 | % | Average assets | 2,413,779 | | 2,399,446 | | 1 | | $ | 2,447,212 | | $ | 2,384,513 | | 3 | % |
Direct staff (in thousands) | Direct staff (in thousands) | 238 | | 220 | | 8 | % | | | Direct staff (in thousands) | 240 | | 238 | | 1 | % | | |
| Performance metrics | Performance metrics | | | | Performance metrics | | | |
| Return on average assets | Return on average assets | 0.58 | % | 0.79 | % | | 0.69 | % | 1.08 | % | | Return on average assets | 0.58 | % | 0.58 | % | | 0.60 | % | 0.69 | % | |
Return on average common stockholders’ equity(3)(2) | Return on average common stockholders’ equity(3)(2) | 7.1 | | 9.5 | | | 8.6 | | 13.2 | | | Return on average common stockholders’ equity(3)(2) | 6.7 | | 7.1 | | | 7.3 | | 8.6 | | |
Return on average total stockholders’ equity(3)(2) | Return on average total stockholders’ equity(3)(2) | 6.9 | | 9.1 | | | 8.3 | | 12.5 | | | Return on average total stockholders’ equity(3)(2) | 6.7 | | 6.9 | | | 7.1 | | 8.3 | | |
Return on tangible common equity (RoTCE)(4)(3) | Return on tangible common equity (RoTCE)(4)(3) | 8.2 | | 11.0 | | | 9.9 | | 15.4 | | | Return on tangible common equity (RoTCE)(4)(3) | 7.7 | | 8.2 | | | 8.3 | | 9.9 | | |
| Efficiency ratio (total operating expenses/total revenues, net) | Efficiency ratio (total operating expenses/total revenues, net) | 68.9 | | 67.5 | | | 66.8 | | 63.2 | | | Efficiency ratio (total operating expenses/total revenues, net) | 67.1 | | 68.9 | | | 66.2 | | 66.8 | | |
| Basel III ratios | Basel III ratios | | | | Basel III ratios | | | |
Common Equity Tier 1 Capital(5) | 12.29 | % | 11.65 | % | | | | |
Tier 1 Capital(5) | 14.01 | | 13.15 | | | | | |
Total Capital(5) | 15.09 | | 15.37 | | | | | |
CET1 Capital(4)(5) | | CET1 Capital(4)(5) | 13.59 | % | 12.26 | % | | | |
Tier 1 Capital(4)(5) | | Tier 1 Capital(4)(5) | 15.40 | | 13.97 | | | | |
Total Capital(4)(5) | | Total Capital(4)(5) | 15.78 | | 14.99 | | | | |
Supplementary Leverage ratio(5) | Supplementary Leverage ratio(5) | 5.71 | | 5.80 | | | | | Supplementary Leverage ratio(5) | 6.04 | | 5.71 | | | | |
| Citigroup common stockholders’ equity to assets | Citigroup common stockholders’ equity to assets | 7.54 | % | 7.74 | % | | | | Citigroup common stockholders’ equity to assets | 8.02 | % | 7.54 | % | | | |
| Total Citigroup stockholders’ equity to assets | Total Citigroup stockholders’ equity to assets | 8.34 | | 8.50 | | | | | Total Citigroup stockholders’ equity to assets | 8.85 | | 8.34 | | | | |
Dividend payout ratio(6) | Dividend payout ratio(6) | 31 | | 24 | | | 26 | % | 18 | % | | Dividend payout ratio(6) | 33 | | 31 | | | 30 | % | 26 | % | |
Total payout ratio(7) | Total payout ratio(7) | 31 | | 92 | | | 54 | | 60 | | | Total payout ratio(7) | 48 | | 31 | | | 45 | | 54 | | |
| Book value per common share | Book value per common share | $ | 92.71 | | $ | 92.16 | | 1 | % | | | Book value per common share | $ | 99.28 | | $ | 92.71 | | 7 | % | | |
Tangible book value (TBV) per share(4) | 80.34 | | 79.07 | | 2 | | | | |
Tangible book value per share (TBVPS)(3) | | Tangible book value per share (TBVPS)(3) | 86.90 | | 80.34 | | 8 | | | |
(1) During the fourth quarter of 2021, Citi reclassified deposit insurance expenses from Interest expense to Other operating expenses for all periods presented. The amounts reclassified for the third quarter and nine months of 2021 were $293 million and $912 million, respectively.
(2) Certain series of preferred stock have semiannual payment dates. See Note 20 to the Consolidated Financial Statements in Citi’s 2021 Form 10-K.19.
(3)(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.
(4)(3) RoTCE and TBVTBVPS are non-GAAP financial measures. For information on RoTCE and TBV,TBVPS, see “Capital Resources—Tangible Common Equity, Book Value Per Share, Tangible Book Value Per Share and Return on Equity” below.
(5)(4) Citi’s binding Common Equity Tier 1CET1 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. As
(5) Certain of September 30, 2022, the Supplementary Leverage ratio and the Total Capital ratio under the Basel III Advanced Approaches framework became more binding than the Common Equity Tier 1 Capital ratio under the Basel III Standardized Approach. Each of Citi’s Basel III risk-based capital and leverage ratios exceeded the respective regulatory capital requirement by at least $19 billion as of September 30, 2022. Citi expects the Basel III Standardized Approach capital ratiosabove prior-period amounts have been revised to be more binding in future quarters due to the increased Stress Capital Bufferconform with enhancements made in the fourth quarter of 2022 and the additional GSIB surcharge in the first quarter of 2023.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 “Unregistered Sales of Equity Securities, Repurchases of Equity Securities and Dividends”“Equity Security Repurchases” below for the component details.
NM Not meaningful
SEGMENT REVENUES AND INCOME (LOSS)
REVENUES
| | | Third Quarter | | Nine Months | | | Third Quarter | | Nine Months | |
| In millions of dollars | In millions of dollars | 2022 | 2021 | % Change | 2022 | 2021 | % Change | In millions of dollars | 2023 | 2022 | % Change | 2023 | 2022 | % Change |
| Institutional Clients Group | Institutional Clients Group | $ | 9,468 | | $ | 9,991 | | (5) | % | $ | 32,047 | | $ | 30,928 | | 4 | % | Institutional Clients Group | $ | 10,644 | | $ | 9,468 | | 12 | % | $ | 32,318 | | $ | 32,047 | | 1 | % |
| Personal Banking and Wealth Management | Personal Banking and Wealth Management | 6,187 | | 5,852 | | 6 | | 18,121 | | 17,542 | | 3 | | Personal Banking and Wealth Management | 6,778 | | 6,187 | | 10 | | 19,621 | | 18,121 | | 8 | |
| Legacy Franchises | Legacy Franchises | 2,554 | | 1,536 | | 66 | | 6,420 | | 6,058 | | 6 | | Legacy Franchises | 2,217 | | 2,554 | | (13) | | 6,992 | | 6,420 | | 9 | |
| Corporate/Other | Corporate/Other | 299 | | 68 | | NM | 744 | | 339 | | NM | Corporate/Other | 500 | | 299 | | 67 | | 2,091 | | 744 | | NM |
| Total Citigroup net revenues | Total Citigroup net revenues | $ | 18,508 | | $ | 17,447 | | 6 | % | $ | 57,332 | | $ | 54,867 | | 4 | % | Total Citigroup net revenues | $ | 20,139 | | $ | 18,508 | | 9 | % | $ | 61,022 | | $ | 57,332 | | 6 | % |
NM Not meaningful
INCOME
| | | Third Quarter | | Nine Months | | | Third Quarter | | Nine Months | |
| In millions of dollars | In millions of dollars | 2022 | 2021 | % Change | 2022 | 2021 | % Change | In millions of dollars | 2023 | 2022 | % Change | 2023 | 2022 | % Change |
| Income (loss) from continuing operations | Income (loss) from continuing operations | | | | Income (loss) from continuing operations | | | |
| Institutional Clients Group | Institutional Clients Group | $ | 2,186 | | $ | 3,115 | | (30) | % | $ | 8,822 | | $ | 11,978 | | (26) | % | Institutional Clients Group | $ | 2,465 | | $ | 2,186 | | 13 | % | $ | 7,982 | | $ | 8,822 | | (10) | % |
| Personal Banking and Wealth Management | Personal Banking and Wealth Management | 792 | | 1,896 | | (58) | | 3,205 | | 6,121 | | (48) | | Personal Banking and Wealth Management | 803 | | 792 | | 1 | | 1,786 | | 3,205 | | (44) | |
| Legacy Franchises | Legacy Franchises | 316 | | (201) | | NM | (84) | | 611 | | NM | Legacy Franchises | 127 | | 316 | | (60) | | 611 | | (84) | | NM |
| Corporate/Other | Corporate/Other | 221 | | (141) | | NM | 686 | | 129 | | NM | Corporate/Other | 190 | | 221 | | (14) | | 810 | | 686 | | 18 | |
| Income from continuing operations | Income from continuing operations | $ | 3,515 | | $ | 4,669 | | (25) | % | $ | 12,629 | | $ | 18,839 | | (33) | % | Income from continuing operations | $ | 3,585 | | $ | 3,515 | | 2 | % | $ | 11,189 | | $ | 12,629 | | (11) | % |
| Discontinued operations | Discontinued operations | $ | (6) | | $ | (1) | | NM | $ | (229) | | $ | 7 | | NM | Discontinued operations | $ | 2 | | $ | (6) | | NM | $ | — | | $ | (229) | | 100 | % |
| Less: Net income attributable to noncontrolling interests | Less: Net income attributable to noncontrolling interests | 30 | | 24 | | 25 | % | 68 | | 67 | | 1 | % | Less: Net income attributable to noncontrolling interests | 41 | | 30 | | 37 | % | 122 | | 68 | | 79 | |
| Citigroup’s net income | Citigroup’s net income | $ | 3,479 | | $ | 4,644 | | (25) | % | $ | 12,332 | | $ | 18,779 | | (34) | % | Citigroup’s net income | $ | 3,546 | | $ | 3,479 | | 2 | % | $ | 11,067 | | $ | 12,332 | | (10) | % |
NM Not meaningful
SEGMENT BALANCE SHEET(1)—SEPTEMBER 30, 20222023
| | | | | | | | | | | | | | | | | | | | |
| 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 | $ | 104,690 | | $ | 5,495 | | $ | 3,525 | | $ | 185,897 | | $ | — | | $ | 299,607 | |
| Securities borrowed and purchased under agreements to resell, net of allowance | 348,267 | | 530 | | 417 | | — | | — | | 349,214 | |
| Trading account assets | 342,289 | | 4,212 | | 676 | | 11,083 | | — | | 358,260 | |
| Investments, net of allowance | 125,479 | | 73 | | 1,483 | | 380,981 | | — | | 508,016 | |
| Loans, net of unearned income and allowance for credit losses on loans | 278,595 | | 315,352 | | 35,704 | | — | | — | | 629,651 | |
| Other assets, net of allowance | 134,590 | | 26,751 | | 33,159 | | 41,816 | | — | | 236,316 | |
Net inter-segment liquid assets(4) | 372,431 | | 126,539 | | 25,306 | | (524,276) | | — | | — | |
| Total assets | $ | 1,706,341 | | $ | 478,952 | | $ | 100,270 | | $ | 95,501 | | $ | — | | $ | 2,381,064 | |
| Liabilities and equity | | | | | | |
| Total deposits | $ | 796,871 | | $ | 427,336 | | $ | 50,400 | | $ | 31,879 | | $ | — | | $ | 1,306,486 | |
Securities loaned and sold under
agreements to repurchase | 201,793 | | 41 | | 1,595 | | — | | — | | 203,429 | |
| Trading account liabilities | 192,755 | | 3,259 | | 305 | | 160 | | — | | 196,479 | |
| Short-term borrowings | 35,104 | | — | | — | | 12,264 | | — | | 47,368 | |
Long-term debt(3) | 80,716 | | 229 | | 424 | | 12,448 | | 159,251 | | 253,068 | |
| Other liabilities | 118,050 | | 12,287 | | 30,592 | | 14,188 | | — | | 175,117 | |
Net inter-segment funding (lending)(3) | 281,052 | | 35,800 | | 16,954 | | 24,005 | | (357,811) | | — | |
| Total liabilities | $ | 1,706,341 | | $ | 478,952 | | $ | 100,270 | | $ | 94,944 | | $ | (198,560) | | $ | 2,181,947 | |
Total stockholders’ equity(5) | — | | — | | — | | 557 | | 198,560 | | 199,117 | |
| Total liabilities and equity | $ | 1,706,341 | | $ | 478,952 | | $ | 100,270 | | $ | 95,501 | | $ | — | | $ | 2,381,064 | |
| | | | | | | | | | | | | | | | | | | | |
| 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 | $ | 100,907 | | $ | 6,242 | | $ | 2,948 | | $ | 143,890 | | $ | — | | $ | 253,987 | |
| Securities borrowed and purchased under agreements to resell, net of allowance | 334,419 | | 320 | | 320 | | — | | — | | 335,059 | |
| Trading account assets | 395,108 | | 1,301 | | 433 | | 9,526 | | — | | 406,368 | |
| Investments, net of allowance | 142,851 | | 13 | | 1,519 | | 364,615 | | — | | 508,998 | |
| Loans, net of unearned income and allowance for credit losses on loans | 277,866 | | 335,971 | | 34,882 | | — | | — | | 648,719 | |
| Other assets, net of allowance | 127,263 | | 25,541 | | 17,710 | | 44,832 | | — | | 215,346 | |
Net intersegment liquid assets(4) | 343,647 | | 101,279 | | 22,674 | | (467,600) | | — | | — | |
| Total assets | $ | 1,722,061 | | $ | 470,667 | | $ | 80,486 | | $ | 95,263 | | $ | — | | $ | 2,368,477 | |
| Liabilities and equity | | | | | | |
| Total deposits | $ | 782,346 | | $ | 416,257 | | $ | 50,845 | | $ | 24,058 | | $ | — | | $ | 1,273,506 | |
Securities loaned and sold under
agreements to repurchase | 253,948 | | 30 | | 2,754 | | 38 | | — | | 256,770 | |
| Trading account liabilities | 163,251 | | 529 | | 255 | | 589 | | — | | 164,624 | |
| Short-term borrowings | 32,596 | | 1 | | — | | 10,569 | | — | | 43,166 | |
Long-term debt(3) | 98,871 | | 314 | | 76 | | 15,928 | | 160,571 | | 275,760 | |
| Other liabilities | 102,400 | | 13,337 | | 13,747 | | 14,972 | | — | | 144,456 | |
Net intersegment funding (lending)(3) | 288,649 | | 40,199 | | 12,809 | | 28,417 | | (370,074) | | — | |
| Total liabilities | $ | 1,722,061 | | $ | 470,667 | | $ | 80,486 | | $ | 94,571 | | $ | (209,503) | | $ | 2,158,282 | |
Total equity(5) | — | | — | | — | | 692 | | 209,503 | | 210,195 | |
| Total liabilities and equity | $ | 1,722,061 | | $ | 470,667 | | $ | 80,486 | | $ | 95,263 | | $ | — | | $ | 2,368,477 | |
(1)The supplemental information presented in the table above reflects Citigroup’s consolidated GAAP balance sheet by reportable segment.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 stockholders’ equity and the majority of long-term debt of Citigroup are reflected on the Citigroup parent company balance sheet.sheet (see Notes 17 and 27). Citigroup allocates stockholders’ equity and long-term debt to its businesses through inter-segmentintersegment allocations as shown above.
(4)Represents the attribution of Citigroup’s liquid assets (primarily consisting of cash, marketable equity securities and available-for-saleAFS 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 20212022 Form 10-K.
For information on Citi’s planned revision to its financial reporting structure as of the end of the fourth quarter of 2023, including, among other things, the elimination of the ICG operating segment and the resulting creation of three new reportable operating segments (Services, consisting of Treasury and Trade Solutions and Securities Services; Markets, consisting of Fixed Income and Equity markets; and Banking, consisting of Investment Banking and Corporate Lending), see “Planned Revision to Operating Model and Financial Reporting Structure” above.
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 intends to endended nearly all of the institutional banking services it offersoffered in Russia, bywith the end of the first quarter of 2023. Going forward, Citi’sremaining services only operations in Russia will be those necessary to fulfill its remaining legal and regulatory obligations. At this time, Citi does not expect the costs incurred in relation to this action to be material. 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 September 30, 2022,2023, ICG had $1.7 trillion in assets and $797$782 billion in deposits. Securities services managed $20.7$23.0 trillion in assets under custody and administration at September 30, 2022,2023, of which Citi provided both custody and administrative services to certain clients related to $1.8 trillion of such assets. Managed assets under trust were $3.9$4.1 trillion at September 30, 2022.2023. For additional information on these operations, see “Administration and Other Fiduciary Fees” in Note 5.
| | | Third Quarter | | Nine Months | | | Third Quarter | | Nine Months | |
| In millions of dollars, except as otherwise noted | In millions of dollars, except as otherwise noted | 2022 | 2021 | % Change | 2022 | 2021 | % Change | In millions of dollars, except as otherwise noted | 2023 | 2022 | % Change | 2023 | 2022 | % Change |
| Commissions and fees | Commissions and fees | $ | 1,082 | | $ | 1,055 | | 3 | % | $ | 3,337 | | $ | 3,236 | | 3 | % | Commissions and fees | $ | 1,138 | | $ | 1,082 | | 5 | % | $ | 3,414 | | $ | 3,337 | | 2 | % |
| Administration and other fiduciary fees | Administration and other fiduciary fees | 651 | | 676 | | (4) | | 2,055 | | 2,031 | | 1 | | Administration and other fiduciary fees | 673 | | 651 | | 3 | | 2,036 | | 2,055 | | (1) | |
Investment banking fees(1) | Investment banking fees(1) | 816 | | 1,685 | | (52) | | 2,845 | | 5,040 | | (44) | | Investment banking fees(1) | 805 | | 816 | | (1) | | 2,325 | | 2,845 | | (18) | |
| Principal transactions | Principal transactions | 2,776 | | 2,229 | | 25 | | 11,576 | | 8,109 | | 43 | | Principal transactions | 2,899 | | 2,776 | | 4 | | 9,071 | | 11,576 | | (22) | |
| Other | Other | (427) | | 608 | | NM | (640) | | 1,281 | | NM | Other | (365) | | (427) | | 15 | | (673) | | (640) | | (5) | |
| Total non-interest revenue | Total non-interest revenue | $ | 4,898 | | $ | 6,253 | | (22) | % | $ | 19,173 | | $ | 19,697 | | (3) | % | Total non-interest revenue | $ | 5,150 | | $ | 4,898 | | 5 | % | $ | 16,173 | | $ | 19,173 | | (16) | % |
| Net interest income (including dividends) | Net interest income (including dividends) | 4,570 | | 3,738 | | 22 | | 12,874 | | 11,231 | | 15 | | Net interest income (including dividends) | 5,494 | | 4,570 | | 20 | | 16,145 | | 12,874 | | 25 | |
| Total revenues, net of interest expense | Total revenues, net of interest expense | $ | 9,468 | | $ | 9,991 | | (5) | % | $ | 32,047 | | $ | 30,928 | | 4 | % | Total revenues, net of interest expense | $ | 10,644 | | $ | 9,468 | | 12 | % | $ | 32,318 | | $ | 32,047 | | 1 | % |
| Total operating expenses | Total operating expenses | $ | 6,541 | | $ | 5,963 | | 10 | % | $ | 19,698 | | $ | 17,724 | | 11 | % | Total operating expenses | $ | 7,179 | | $ | 6,541 | | 10 | % | $ | 21,438 | | $ | 19,698 | | 9 | % |
| Net credit losses on loans | Net credit losses on loans | $ | — | | $ | 31 | | (100) | % | $ | 48 | | $ | 274 | | (82) | % | Net credit losses on loans | $ | 51 | | $ | — | | — | % | $ | 146 | | $ | 48 | | NM |
| Credit reserve build (release) for loans | Credit reserve build (release) for loans | 75 | | 14 | | NM | 595 | | (1,901) | | NM | Credit reserve build (release) for loans | 101 | | 75 | | 35 | | (124) | | 595 | | NM |
| Provision (release) for credit losses on unfunded lending commitments | Provision (release) for credit losses on unfunded lending commitments | (59) | | (13) | | NM | 124 | | (572) | | NM | Provision (release) for credit losses on unfunded lending commitments | (40) | | (59) | | 32 | | (298) | | 124 | | NM |
| Provisions (releases) for credit losses on HTM debt securities and other assets | Provisions (releases) for credit losses on HTM debt securities and other assets | 70 | | (8) | | NM | 88 | | (10) | | NM | Provisions (releases) for credit losses on HTM debt securities and other assets | 84 | | 70 | | 20 | | 458 | | 88 | | NM |
| Provisions (releases) for credit losses | Provisions (releases) for credit losses | $ | 86 | | $ | 24 | | NM | $ | 855 | | $ | (2,209) | | NM | Provisions (releases) for credit losses | $ | 196 | | $ | 86 | | NM | $ | 182 | | $ | 855 | | (79) | % |
| Income from continuing operations before taxes | Income from continuing operations before taxes | $ | 2,841 | | $ | 4,004 | | (29) | % | $ | 11,494 | | $ | 15,413 | | (25) | % | Income from continuing operations before taxes | $ | 3,269 | | $ | 2,841 | | 15 | % | $ | 10,698 | | $ | 11,494 | | (7) | % |
| Income taxes | Income taxes | 655 | | 889 | | (26) | | 2,672 | | 3,435 | | (22) | | Income taxes | 804 | | 655 | | 23 | | 2,716 | | 2,672 | | 2 | |
| Income from continuing operations | Income from continuing operations | $ | 2,186 | | $ | 3,115 | | (30) | % | $ | 8,822 | | $ | 11,978 | | (26) | % | Income from continuing operations | $ | 2,465 | | $ | 2,186 | | 13 | % | $ | 7,982 | | $ | 8,822 | | (10) | % |
| Noncontrolling interests | Noncontrolling interests | 24 | | 24 | | — | | 59 | | 73 | | (19) | | Noncontrolling interests | 36 | | 24 | | 50 | | 105 | | 59 | | 78 | |
| Net income | Net income | $ | 2,162 | | $ | 3,091 | | (30) | % | $ | 8,763 | | $ | 11,905 | | (26) | % | Net income | $ | 2,429 | | $ | 2,162 | | 12 | % | $ | 7,877 | | $ | 8,763 | | (10) | % |
Balance Sheet data (in billions of dollars) | Balance Sheet data (in billions of dollars) | | | | Balance Sheet data (in billions of dollars) | | | |
| EOP assets | EOP assets | $ | 1,706 | | $ | 1,670 | | 2 | % | | | EOP assets | $ | 1,722 | | $ | 1,706 | | 1 | % | | |
| Average assets | Average assets | 1,729 | | 1,660 | | 4 | | $ | 1,704 | | $ | 1,659 | | 3 | % | Average assets | 1,757 | | 1,729 | | 2 | | $ | 1,775 | | $ | 1,704 | | 4 | % |
| Efficiency ratio | Efficiency ratio | 69 | % | 60 | % | | 61 | % | 57 | % | | Efficiency ratio | 67 | % | 69 | % | | 66 | % | 61 | % | |
Average loans by reporting unit (in billions of dollars) | Average loans by reporting unit (in billions of dollars) | | | | Average loans by reporting unit (in billions of dollars) | | | |
| Services | Services | $ | 82 | | $ | 76 | | 8 | % | $ | 82 | | $ | 73 | | 12 | % | Services | $ | 83 | | $ | 82 | | 1 | % | $ | 81 | | $ | 82 | | (1) | % |
| Banking | Banking | 197 | | 196 | | 1 | | 197 | | 197 | | — | | Banking | 181 | | 197 | | (8) | | 186 | | 197 | | (6) | |
| Markets | Markets | 12 | | 17 | | (29) | | 13 | | 16 | | (19) | | Markets | 14 | | 12 | | 17 | | 13 | | 13 | | — | |
| Total | Total | $ | 291 | | $ | 289 | | 1 | % | $ | 292 | | $ | 286 | | 2 | % | Total | $ | 278 | | $ | 291 | | (4) | % | $ | 280 | | $ | 292 | | (4) | % |
Average deposits by reporting unit and component (in billions of dollars) | | | | |
| Average deposits by reporting unit (in billions of dollars) | | Average deposits by reporting unit (in billions of dollars) | | | |
| TTS | TTS | $ | 664 | | $ | 668 | | (1) | % | $ | 664 | | $ | 658 | | 1 | % | TTS | $ | 676 | | $ | 664 | | 2 | % | $ | 690 | | $ | 669 | | 3 | % |
| Securities services | Securities services | 131 | | 135 | | (3) | | 134 | | 133 | | 1 | | Securities services | 120 | | 131 | | (8) | | 123 | | 134 | | (8) | |
| Services | Services | $ | 795 | | $ | 803 | | (1) | % | $ | 798 | | $ | 791 | | 1 | % | Services | $ | 796 | | $ | 795 | | — | % | $ | 813 | | $ | 803 | | 1 | % |
| Markets | 22 | | 28 | | (21) | | 26 | | 28 | | (7) | | |
| Markets and Banking | | Markets and Banking | 25 | | 22 | | 14 | | 24 | | 21 | | 14 | |
| Total | Total | $ | 817 | | $ | 831 | | (2) | % | $ | 824 | | $ | 819 | | 1 | % | Total | $ | 821 | | $ | 817 | | — | % | $ | 837 | | $ | 824 | | 2 | % |
(1) Investment banking fees are substantially composed of underwriting and advisory revenues.
NM Not meaningful
ICG Revenue Details
| | | | | | | | | | | | | | | | | | | | |
| Third Quarter | | Nine Months | |
| In millions of dollars | 2022 | 2021 | % Change | 2022 | 2021 | % Change |
| Services | | | | | | |
| Net interest income | $ | 2,619 | | $ | 1,613 | | 62 | % | $ | 6,853 | | $ | 4,870 | | 41 | % |
| Non-interest revenue | 1,558 | | 1,528 | | 2 | | 4,795 | | 4,411 | | 9 | |
| Total Services revenues | $ | 4,177 | | $ | 3,141 | | 33 | % | $ | 11,648 | | $ | 9,281 | | 26 | % |
| Net interest income | $ | 2,232 | | $ | 1,389 | | 61 | % | $ | 5,917 | | $ | 4,221 | | 40 | % |
| Non-interest revenue | 977 | | 908 | | 8 | | 2,911 | | 2,549 | | 14 | |
| TTS revenues | $ | 3,209 | | $ | 2,297 | | 40 | % | $ | 8,828 | | $ | 6,770 | | 30 | % |
| Net interest income | $ | 387 | | $ | 224 | | 73 | % | $ | 936 | | $ | 649 | | 44 | % |
| Non-interest revenue | 581 | | 620 | | (6) | | 1,884 | | 1,862 | | 1 | |
| Securities services revenues | $ | 968 | | $ | 844 | | 15 | % | $ | 2,820 | | $ | 2,511 | | 12 | % |
| Markets | | | | | | |
| Net interest income | $ | 1,228 | | $ | 1,265 | | (3) | % | $ | 3,720 | | $ | 3,953 | | (6) | % |
| Non-interest revenue | 2,840 | | 3,122 | | (9) | | 11,494 | | 10,622 | | 8 | |
Total Markets revenues(1) | $ | 4,068 | | $ | 4,387 | | (7) | % | $ | 15,214 | | $ | 14,575 | | 4 | % |
| Fixed income markets | $ | 3,062 | | $ | 3,040 | | 1 | % | $ | 11,445 | | $ | 10,497 | | 9 | % |
| Equity markets | 1,006 | | 1,347 | | (25) | | 3,769 | | 4,078 | | (8) | |
| Total Markets revenues | $ | 4,068 | | $ | 4,387 | | (7) | % | $ | 15,214 | | $ | 14,575 | | 4 | % |
| Rates and currencies | $ | 2,492 | | $ | 2,112 | | 18 | % | $ | 9,000 | | $ | 7,114 | | 27 | % |
| Spread products / other fixed income | 570 | | 928 | | (39) | | 2,445 | | 3,383 | | (28) | |
| Total Fixed income markets revenues | $ | 3,062 | | $ | 3,040 | | 1 | % | $ | 11,445 | | $ | 10,497 | | 9 | % |
| Banking | | | | | | |
| Net interest income | $ | 723 | | $ | 860 | | (16) | % | $ | 2,301 | | $ | 2,408 | | (4) | % |
| Non-interest revenue | 500 | | 1,603 | | (69) | | 2,884 | | 4,664 | | (38) | |
| Total Banking revenues | $ | 1,223 | | $ | 2,463 | | (50) | % | $ | 5,185 | | $ | 7,072 | | (27) | % |
| Investment banking | | | | | | |
| Advisory | $ | 392 | | $ | 539 | | (27) | % | $ | 1,096 | | $ | 1,225 | | (11) | % |
| Equity underwriting | 100 | | 468 | | (79) | | 462 | | 1,787 | | (74) | |
| Debt underwriting | 139 | | 770 | | (82) | | 906 | | 2,066 | | (56) | |
| Total Investment banking revenues | $ | 631 | | $ | 1,777 | | (64) | % | $ | 2,464 | | $ | 5,078 | | (51) | % |
Corporate lending (excluding gains (losses) on loan hedges)(2) | $ | 648 | | $ | 732 | | (11) | % | $ | 2,114 | | $ | 2,155 | | (2) | % |
Total Banking revenues (excluding gains (losses) on loan hedges)(2) | $ | 1,279 | | $ | 2,509 | | (49) | % | $ | 4,578 | | $ | 7,233 | | (37) | % |
Gains (losses) on loan hedges(2) | (56) | | (46) | | (22) | | 607 | | (161) | | NM |
Total Banking revenues (including gains (losses) on loan hedges)(2) | $ | 1,223 | | $ | 2,463 | | (50) | % | $ | 5,185 | | $ | 7,072 | | (27) | % |
Total ICG revenues, net of interest expense | $ | 9,468 | | $ | 9,991 | | (5) | % | $ | 32,047 | | $ | 30,928 | | 4 | % |
| | | | | | | | | | | | | | | | | | | | |
| Third Quarter | | Nine Months | |
| In millions of dollars | 2023 | 2022 | % Change | 2023 | 2022 | % Change |
| Services | | | | | | |
| Net interest income | $ | 3,133 | | $ | 2,619 | | 20 | % | $ | 8,886 | | $ | 6,897 | | 29 | % |
| Non-interest revenue | 1,582 | | 1,558 | | 2 | | 4,951 | | 4,795 | | 3 | |
| Total Services revenues | $ | 4,715 | | $ | 4,177 | | 13 | % | $ | 13,837 | | $ | 11,692 | | 18 | % |
| Net interest income | $ | 2,607 | | $ | 2,231 | | 17 | % | $ | 7,390 | | $ | 5,960 | | 24 | % |
| Non-interest revenue | 984 | | 977 | | 1 | | 3,122 | | 2,911 | | 7 | |
| TTS revenues | $ | 3,591 | | $ | 3,208 | | 12 | % | $ | 10,512 | | $ | 8,871 | | 18 | % |
| Net interest income | $ | 526 | | $ | 388 | | 36 | % | $ | 1,496 | | $ | 937 | | 60 | % |
| Non-interest revenue | 598 | | 581 | | 3 | | 1,829 | | 1,884 | | (3) | |
| Securities services revenues | $ | 1,124 | | $ | 969 | | 16 | % | $ | 3,325 | | $ | 2,821 | | 18 | % |
| Markets | | | | | | |
| Net interest income | $ | 1,578 | | $ | 1,228 | | 29 | % | $ | 5,030 | | $ | 3,675 | | 37 | % |
| Non-interest revenue | 2,902 | | 2,840 | | 2 | | 9,670 | | 11,494 | | (16) | |
Total Markets revenues(1) | $ | 4,480 | | $ | 4,068 | | 10 | % | $ | 14,700 | | $ | 15,169 | | (3) | % |
| Fixed income markets | $ | 3,562 | | $ | 3,122 | | 14 | % | $ | 11,545 | | $ | 11,489 | | — | % |
| Equity markets | 918 | | 946 | | (3) | | 3,155 | | 3,680 | | (14) | |
| Total Markets revenues | $ | 4,480 | | $ | 4,068 | | 10 | % | $ | 14,700 | | $ | 15,169 | | (3) | % |
| Rates and currencies | $ | 2,801 | | $ | 2,492 | | 12 | % | $ | 9,285 | | $ | 8,955 | | 4 | % |
| Spread products / other fixed income | 761 | | 630 | | 21 | | 2,260 | | 2,534 | | (11) | |
| Total Fixed income markets revenues | $ | 3,562 | | $ | 3,122 | | 14 | % | $ | 11,545 | | $ | 11,489 | | — | % |
| Banking | | | | | | |
| Net interest income | $ | 783 | | $ | 723 | | 8 | % | $ | 2,229 | | $ | 2,302 | | (3) | % |
| Non-interest revenue | 666 | | 500 | | 33 | | 1,552 | | 2,884 | | (46) | |
| Total Banking revenues | $ | 1,449 | | $ | 1,223 | | 18 | % | $ | 3,781 | | $ | 5,186 | | (27) | % |
| Investment banking | | | | | | |
| Advisory | $ | 309 | | $ | 392 | | (21) | % | $ | 760 | | $ | 1,096 | | (31) | % |
| Equity underwriting | 132 | | 100 | | 32 | | 403 | | 462 | | (13) | |
| Debt underwriting | 403 | | 139 | | NM | 1,067 | | 906 | | 18 | |
| Total Investment banking revenues | $ | 844 | | $ | 631 | | 34 | % | $ | 2,230 | | $ | 2,464 | | (9) | % |
Corporate lending (excluding gains (losses) on loan hedges)(2) | $ | 652 | | $ | 648 | | 1 | % | $ | 1,863 | | $ | 2,115 | | (12) | % |
Total Banking revenues (excluding gains (losses) on loan hedges)(2) | $ | 1,496 | | $ | 1,279 | | 17 | % | $ | 4,093 | | $ | 4,579 | | (11) | % |
Gain (loss) on loan hedges(2) | (47) | | (56) | | 16 | | (312) | | 607 | | NM |
Total Banking revenues (including gains (losses) on loan hedges)(2) | $ | 1,449 | | $ | 1,223 | | 18 | % | $ | 3,781 | | $ | 5,186 | | (27) | % |
Total ICG revenues, net of interest expense | $ | 10,644 | | $ | 9,468 | | 12 | % | $ | 32,318 | | $ | 32,047 | | 1 | % |
(1) Citi assesses its Markets business performance on a total revenue basis, as offsets may occur across revenue line items. For example, securities that generate Net interest income may be risk managed with derivatives that are recorded in Principal transactions revenue within Non-interest revenue. For a description of the composition of these revenue line items, see Notes 4, 5 and 6.
(2) Credit derivatives are used to economically hedge a portion of the corporate loan portfolio that includes both accrual loans and loans at fair value. Gains (losses)Gain (loss) on loan hedges includeincludes 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 gains (losses)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 gains (losses)any gain (loss) on hedges of accrual loans, and loans at fair value, which are non-GAAP financial measures. For a reconciliation of these metrics to the reported results, see the table above.
3Q223Q23 vs. 3Q213Q22
Net income of $2.2$2.4 billion decreased 30%increased 12%, primarily driven by lowerhigher revenues, partially offset by higher expenses and modestly higher cost of credit.
Revenues decreased 5%increased 12% (including lossesgain (loss) on loan hedges), primarily reflecting lowerdriven by higher Services, Banking and Markets revenues, partially offset by an approximate $180 million net impact from a currency devaluation in Argentina on Citi’s net investment in the country. Services revenues were up 13%, driven by higher Services revenues.revenues in both TTS and Securities services. Banking revenues were down 50%up 18% (including the impact of lossesthe gain (loss) on loan hedges), largely reflecting lowerhigher revenues in both Investment banking and Corporate lending. Markets revenues were down 7%, primarily driven by Equity markets, partially offset by higher Fixed income markets revenues. Markets revenues were also impacted by business actions, including a reduction in RWA. Services revenues were up 33%10%, driven by higher revenues in both TTS and Securities services.Fixed income markets, partially offset by lower revenues in Equity markets.
Citi expects that revenues in its Markets and Investment banking businesses will continue to reflect the overall market environment including reduced levels of capital markets and M&A activity, during the remainderfourth quarter of 2022.2023.
Within Services:
•TTS revenues increased 40%12%, driven by 61%17% growth in net interest income and 8%1% growth in non-interest revenue, reflecting strong growth across all client segments. The increase in net interest income was primarily driven by both the cash and trade businesses, reflecting benefits from higher interest rates balance sheet optimization and higher average loans (9% increase). The increaseas well as growth in average loans was driven by the trade business, reflecting strength in trade flows, primarily in Asia and Latin America,deposits, partially offset by asset sales in North America.higher interest rates paid on deposits. Average deposits decreased 1%increased 2%, largely driven by foreign exchange translation.growth in EMEA, Asia and Latin America. On a quarter-over-quarter basis, average deposits were down, mainly in North America, driven by portfolio optimization efforts and monetary tightening. Average loans increased 2%, mainly driven by growth in Latin America and North America. The increase in non-interest revenue was primarily due todriven by strong fee growth across bothin the cash and trade businesses,business, reflecting solid client engagement and healthycontinued growth of underlying drivers, withincluding higher cross-border flows (up 16%), U.S. dollar clearing volumes up 2%, cross-border flows up 10%volume (up 6%) and commercial card spend up 49%(up 8%). The increase in non-interest revenue was largely offset by the impact from the currency devaluation in Argentina.
•Securities services revenues increased 15%16%, as net interest income grew 73%36%, driven by higher interest rates across currencies.currencies and cost of funds management, partially offset by the impact of an 8% decline in average deposits. The decline in average deposits reflected the impact of monetary tightening. Non-interest revenues decreased 6%increased 3%, driven by lowerhigher fees in the custody business due to lowerhigher assets under custody (declineand administration and continued elevated levels of 5%), driven by declinescorporation actions in global financial markets.Issuer services. The declineincrease in
non-interest revenuesrevenue was partially offset by continued elevated levels of corporate activitythe impact from the currency devaluation in Issuer services.Argentina.
Within Markets:
•Fixed income markets revenues increased 1%14%, driven by growthNorth America, largely reflecting strength in rates and currencies in EMEA and Asia, due to strong corporate client engagement, largely offset by adespite continued decline in spread products, driven by North America.lower market volatility.
Rates and currencies increased 18%12%, reflecting increased market volatility, driven by rising interest ratesa conducive rate environment and quantitative tightening, as central banks respond to elevated levels of inflation.associated market-making activity. Spread products and other fixed income revenues decreased 39%, due to continued lowerincreased 21%. This increase was driven by North America, reflecting higher commodities revenue, and growth in the financing and securitization business, including increased client activity across spread products and a challenging creditor market due to widening spreads.activity.
•Equity markets revenues decreased 25%3%, driven by equity derivatives, primarily reflecting lower activity by both corporate and institutional clients due to a strong prior-year comparison, as well as a decline in equity derivatives, partially offset by growth in equity cash and prime services. The decline in equity derivatives revenues reflected a more challenging macroeconomic environment and lower volatility. The increase in equity cash revenue was driven by lower volumes.increased client activity. Prime services revenues increased modestly and the business continued to grow prime finance balances.
Within Banking:
•Investment banking revenues declined 64%increased 34%, as strength in equity and debt underwriting was partially offset by a decline in advisory. Advisory revenues decreased 21%, reflecting a decline in the overallEMEA, driven by macroeconomic uncertainties resulting in a lower market wallet, as heightened macroeconomic uncertainty and volatility continuedin addition to impact client activity. Advisorylower wallet share. Equity underwriting revenues decreased 27%increased 32%, reflecting a declinegrowth in EMEA and North America, driven by growth in wallet share, partially offset by lower market wallet. Debt underwriting revenues increased 190%, reflecting growth in North America and EMEA, driven by the declinewallet share gains, largely in the market wallet. Equity and debt underwriting revenues decreased 79% and 82%, respectively, reflecting a decline in North America, EMEA and Asia, also driven by the decline in the market walletinvestment grade, as well as a declinegrowth in wallet share.leveraged loans. The declineincrease in debt underwriting revenues also reflected markdowns on loan commitmentsan absence of certain realized and unrealized losses on loan sales.of $110 million in the prior-year period, compared to gains of $16 million in the current-year period.
•Corporate lending revenues were $592 million versus $686 million in the prior-year period, a decrease of 14%increased 2%, including the impact of lossesgains (losses) on loan hedges. Excluding the impact of lossesgains (losses) on loan hedges, revenues decreased 11%, primarily driven by lower volumes and higher hedging costs.increased modestly (up 1%).
Expenses were up 10%, primarily driven by continued investment in Citi’s transformation, business-led investments and volume-related expenses, partially offset by productivity savings and foreign exchange translation.
Provisions were $86 million, compared to $24 million in the prior-year period. Net credit losses were zero compared to $31 million in the prior-year period.
The ACL build was $86 million, compared to a release of $7 million in the prior-year period. The ACL build was largely driven by a deterioration in macroeconomic forecasts, largely offset by a release of a COVID-19–related uncertainty reserve and a release related to collections on Russia non-accrual
loans.Expenses increased 10%, primarily driven by continued investment in risk and controls and volume-related expenses, partially offset by productivity savings.
Provisions reflected a cost of $196 million, compared to $86 million in the prior-year period, largely driven by an ACL build for loans and higher net credit losses. Net credit losses were $51 million, compared to no losses in the prior-year period.
The ACL build was $145 million, compared to $86 million in the prior-year period, largely driven by an ACL build for loans of $101 million, primarily due to specific risks and uncertainties impacting vulnerable industries and regions, partially offset by improved key macroeconomic variable forecasts. 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 20212022 Form 10-K.
20222023 YTD vs. 20212022 YTD
Net income of $8.8$7.9 billion decreased 26% versus the prior-year period,10%, primarily driven by ACL releases in the prior-year periodhigher expenses and higher expenses,cost of credit, partially offset by highera modest increase in revenues.
Revenues increased 4%1% (including gains (losses)gain (loss) on loan hedges), primarily reflectingdriven by higher revenues in Services and Markets,revenues, partially offset by lower Banking revenues.and Markets revenues as well as the approximate $180 million net impact from the currency devaluation in Argentina. Services revenues were up 26%increased 18%, driven by higher revenues in both TTS and Securities services. Markets revenues were up 4%, primarily driven by higher revenues in Fixed income markets, partially offset by lower revenues in Equity markets. Banking revenues declined 27% (including the impact of gains (losses)the gain (loss) on loan hedges). Excluding the impact of gains (losses) on loan hedges, Banking, reflecting lower revenues in both Investment banking and Corporate lending. Markets revenues declined 37%3%, largely driven by lower revenues in Investment banking.Equity markets, reflecting lower client activity, driven by decreased volatility and a strong prior-year comparison.
Within Services:
•TTS revenues increased 30%18%, reflecting higherwith growth in net interest income of 40%24% and non-interest revenue of 14%7%, largely driven by the same factors described above.
•Securities services revenues increased 12%18%, reflecting higher net interest income, largely driven by the same factors described above. Non-interest revenue was largely unchanged,declined 3%, as thea decrease in revenues in the custody business wasand the impact from the currency devaluation in Argentina were partially offset by an increase in Issuer services.
Within Markets:
•Fixed income markets revenues were largely unchanged. Rates and currencies revenues increased 9%4%, driven by growthstrength in rates, and currencies across EMEA, Latin America and Asia, partially offset by a decline in spreadthe currencies business, primarily reflecting lower volatility and a strong prior-year comparison. Spread products and other fixed income revenues decreased 11%, driven by the same factors described above.lower client activity.
•Equity markets revenues decreased 8%14%, reflecting declinesprimarily due to a decline inequity cash and equity derivatives,, largely driven by the same factors described above.above, as well as a modest decline in equity cash.
Within Banking:
•Investment banking revenues decreased 51%9%. Advisory revenues decreased 11%31%, primarily driven by a decline in thelower market wallet as well as a decline in wallet share.wallet. Equity underwriting revenues decreased 74%, and debt underwriting revenues decreased 56%13%, driven by the same factors described above.lower wallet share. Debt underwriting revenues increased 18%, driven by growth in wallet share, partially offset by a decline in market wallet.
•Corporate lendingrevenues increased 36%decreased 43%, including the impact of gains (losses) on loan hedges. Excluding the impact of gains (losses) on loan hedges, revenues decreased 2%12%, primarily driven by the same factors described above, partially offset by the impactsimpact of foreign currency translation.translation, as well as lower volumes.
Expenses increased 11%9%, primarily driven by the same factors described above.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 FX translation.
Provisions were $855reflected a cost of $182 million, compared to a net benefit of $2.2 billion in the prior-year period, driven by an ACL build, partially offset by lower net credit losses. Net credit losses declined to $48 million from $274$855 million in the prior-year period, largely driven by improvementsperiod. Net credit losses were $146 million, compared to $48 million in portfolio credit quality. the prior-year period.
The ACL build was $807$36 million, compared to a release of $2.5 billion$807 million in the prior-year period. The ACLlower build was primarily driven by increased macroeconomic uncertainty as well asthe absence of Russia-related ACL builds in the prior-year period. The lower build was partially offset by a $458 million build for other assets, primarily related to Citi’san increase in transfer risk associated with exposures in Russiaoutside the U.S. driven by safety and the broader impact of the war in Ukraine on the macroeconomic environment in the first quarter of 2022, partially offset by the release of a COVID-19–related uncertainty reserve and subsequent reductions in Russia-related exposures.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. U.S. Personal Banking’s cards portfolio includes its proprietary portfolios (Cash, Rewards and Value portfolios) and co-branded cards (including, among others, American Airlines and Costco) within Branded cards, as well as its co-brand and private label relationships (including, among others, The Home Depot, Best Buy, Sears and Macy’s) within Retail services. Global Wealth includes Private bank, Wealth at Work and Citigold and provides financial services to the entire continuum of wealth clients—clients from affluent to ultra-high-net-worth—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.
For information on Citi’s planned revision to its financial reporting structure as of the end of the fourth quarter of 2023, including, among other things, the elimination of the PBWM operating segment and the resulting creation of two new reportable operating segments (Wealth, consisting of Private Bank, Wealth at Work and Citigold; and U.S. Personal Banking, consisting of Cards (Branded Cards and Retail Services) and Retail Banking), see “Planned Revision to Operating Model and Financial Reporting Structure” above.
At September 30, 2022,2023, U.S. Personal Banking had 653652 retail bank branches concentrated in the six key metropolitan areas of New York, Chicago, Los Angeles, San Francisco, Miami and Washington, D.C., Los Angeles and San Francisco. Also, as of September 30, 2022, U.S. Personal Banking had $140$156 billion in outstanding credit card balances, $36$109 billion in retail banking loans and $115deposits, $39 billion in deposits.
At September 30, 2022,mortgages and $4 billion in personal and small business loans. Global Wealth had $82$307 billion in deposits, $89 billion in mortgage loans, $65$57 billion in personal and small business loans $4and $5 billion in outstanding credit card balances and $312 billion in deposits.balances.
| | | | | | | | | | | | | | | | | | | | |
| Third Quarter | | Nine Months | |
| In millions of dollars, except as otherwise noted | 2022 | 2021 | % Change | 2022 | 2021 | % Change |
| Net interest income | $ | 5,836 | | $ | 5,174 | | 13 | % | $ | 16,790 | | $ | 15,324 | | 10 | % |
| Non-interest revenue | 351 | | 678 | | (48) | | 1,331 | | 2,218 | | (40) | |
| Total revenues, net of interest expense | $ | 6,187 | | $ | 5,852 | | 6 | % | $ | 18,121 | | $ | 17,542 | | 3 | % |
| Total operating expenses | $ | 4,077 | | $ | 3,624 | | 13 | % | $ | 11,951 | | $ | 10,593 | | 13 | % |
| Net credit losses on loans | $ | 723 | | $ | 641 | | 13 | % | $ | 2,113 | | $ | 2,493 | | (15) | % |
| Credit reserve build (release) for loans | 360 | | (836) | | NM | (64) | | (3,418) | | 98 | |
| Provision (release) for credit losses on unfunded lending commitments | 19 | | (7) | | NM | 30 | | (13) | | NM |
| Provisions for benefits and claims (PBC), and other assets | 7 | | 1 | | NM | 9 | | 10 | | (10) | |
| Provisions (releases) for credit losses and PBC | $ | 1,109 | | $ | (201) | | NM | $ | 2,088 | | $ | (928) | | NM |
| Income (loss) from continuing operations before taxes | $ | 1,001 | | $ | 2,429 | | (59) | % | $ | 4,082 | | $ | 7,877 | | (48) | % |
| Income taxes (benefits) | 209 | | 533 | | (61) | | 877 | | 1,756 | | (50) | |
| Income (loss) from continuing operations | $ | 792 | | $ | 1,896 | | (58) | % | $ | 3,205 | | $ | 6,121 | | (48) | % |
| Noncontrolling interests | — | | — | | — | | — | | — | | — | |
| Net income (loss) | $ | 792 | | $ | 1,896 | | (58) | % | $ | 3,205 | | $ | 6,121 | | (48) | % |
Balance Sheet data (in billions of dollars) | | | | | | |
| EOP assets | $ | 479 | | $ | 477 | | — | % | | | |
| Average assets | 473 | | 474 | | — | | $ | 474 | | $ | 463 | | 2 | % |
| Average loans | 325 | | 309 | | 5 | | 318 | | 305 | | 4 | |
| Average deposits | 428 | | 424 | | 1 | | 437 | | 410 | | 7 | |
| Efficiency ratio | 66 | % | 62 | % | | 66 | % | 60 | % | |
| Net credit losses as a percentage of average loans | 0.88 | | 0.82 | | | 0.89 | | 1.09 | | |
| Revenue by reporting unit and component | | | | | | |
| Branded cards | $ | 2,258 | | $ | 2,045 | | 10 | % | $ | 6,516 | | $ | 6,117 | | 7 | % |
| Retail services | 1,431 | | 1,277 | | 12 | | 4,030 | | 3,792 | | 6 | |
| Retail banking | 642 | | 629 | | 2 | | 1,893 | | 1,882 | | 1 | |
| U.S. Personal Banking | $ | 4,331 | | $ | 3,951 | | 10 | % | $ | 12,439 | | $ | 11,791 | | 5 | % |
| Private bank | $ | 649 | | $ | 722 | | (10) | % | $ | 2,173 | | $ | 2,255 | | (4) | % |
| Wealth at Work | 182 | | 172 | | 6 | | 535 | | 514 | | 4 | |
| Citigold | 1,025 | | 1,007 | | 2 | | 2,974 | | 2,982 | | — | |
| Global Wealth | $ | 1,856 | | $ | 1,901 | | (2) | % | $ | 5,682 | | $ | 5,751 | | (1) | % |
| Total | $ | 6,187 | | $ | 5,852 | | 6 | % | $ | 18,121 | | $ | 17,542 | | 3 | % |
| | | | | | | | | | | | | | | | | | | | |
| Third Quarter | | Nine Months | |
| In millions of dollars, except as otherwise noted | 2023 | 2022 | % Change | 2023 | 2022 | % Change |
| Net interest income | $ | 6,356 | | $ | 5,836 | | 9 | % | $ | 18,253 | | $ | 16,790 | | 9 | % |
| Non-interest revenue | 422 | | 351 | | 20 | | 1,368 | | 1,331 | | 3 | |
| Total revenues, net of interest expense | $ | 6,778 | | $ | 6,187 | | 10 | % | $ | 19,621 | | $ | 18,121 | | 8 | % |
| Total operating expenses | $ | 4,301 | | $ | 4,077 | | 5 | % | $ | 12,759 | | $ | 11,951 | | 7 | % |
| Net credit losses on loans | $ | 1,367 | | $ | 723 | | 89 | % | $ | 3,702 | | $ | 2,113 | | 75 | % |
| Credit reserve build (release) for loans | 95 | | 360 | | (74) | | 935 | | (64) | | NM |
| Provision (release) for credit losses on unfunded lending commitments | (9) | | 19 | | NM | (13) | | 30 | | NM |
| Provisions for benefits and claims (PBC), and other assets | 4 | | 7 | | (43) | | 3 | | 9 | | (67) | |
| Provisions (releases) for credit losses and PBC | $ | 1,457 | | $ | 1,109 | | 31 | % | $ | 4,627 | | $ | 2,088 | | NM |
| Income from continuing operations before taxes | $ | 1,020 | | $ | 1,001 | | 2 | % | $ | 2,235 | | $ | 4,082 | | (45) | % |
| Income taxes | 217 | | 209 | | 4 | | 449 | | 877 | | (49) | |
| Income from continuing operations | $ | 803 | | $ | 792 | | 1 | % | $ | 1,786 | | $ | 3,205 | | (44) | % |
| Noncontrolling interests | — | | — | | — | | — | | — | | — | |
| Net income | $ | 803 | | $ | 792 | | 1 | % | $ | 1,786 | | $ | 3,205 | | (44) | % |
Balance Sheet data (in billions of dollars) | | | | | | |
| EOP assets | $ | 471 | | $ | 479 | | (2) | % | | | |
| Average assets | 474 | | 473 | | — | | $ | 484 | | $ | 474 | | 2 | % |
| Average loans | 347 | | 325 | | 7 | | 340 | | 318 | | 7 | |
| Average deposits | 421 | | 428 | | (2) | | 429 | | 437 | | (2) | |
| Efficiency ratio | 63 | % | 66 | % | | 65 | % | 66 | % | |
| Net credit losses as a percentage of average loans | 1.57 | | 0.88 | | | 1.46 | | 0.89 | | |
| Revenue by reporting unit and component | | | | | | |
| Branded cards | $ | 2,538 | | $ | 2,258 | | 12 | % | $ | 7,356 | | $ | 6,516 | | 13 | % |
| Retail services | 1,731 | | 1,431 | | 21 | | 4,990 | | 4,030 | | 24 | |
| Retail banking | 624 | | 642 | | (3) | | 1,831 | | 1,893 | | (3) | |
| U.S. Personal Banking | $ | 4,893 | | $ | 4,331 | | 13 | % | $ | 14,177 | | $ | 12,439 | | 14 | % |
| Private bank | $ | 640 | | $ | 649 | | (1) | % | $ | 1,812 | | $ | 2,173 | | (17) | % |
| Wealth at Work | 234 | | 182 | | 29 | | 651 | | 535 | | 22 | |
| Citigold | 1,011 | | 1,025 | | (1) | | 2,981 | | 2,974 | | — | |
| Global Wealth | $ | 1,885 | | $ | 1,856 | | 2 | % | $ | 5,444 | | $ | 5,682 | | (4) | % |
| Total | $ | 6,778 | | $ | 6,187 | | 10 | % | $ | 19,621 | | $ | 18,121 | | 8 | % |
NM Not meaningful
3Q223Q23 vs. 3Q213Q22
Net income was $792$803 million, compared to $1.9$792 million in the prior-year period, driven by higher revenues, partially offset by higher cost of credit and higher expenses.
Revenues increased 10%, primarily driven by higher net interest income, reflecting strong loan growth in U.S. Personal Banking, as well as higher non-interest revenue, primarily due to lower partner payments in Retail services and higher investment product revenues in Global Wealth.
U.S. Personal Banking revenues increased 13%, reflecting higher revenues in cards, partially offset by lower revenues in Retail banking.
Cards revenues increased 16%. Branded cards revenues increased 12%, primarily driven by the higher net interest income, reflecting the strong loan growth. Branded cards new account acquisitions increased 5% and card spend volumes increased 4%. Average loans increased 12%, reflecting lower payment rates and the higher card spend volumes.
Retail services revenues increased 21%, primarily driven by the higher net interest income on higher loan balances, as well as higher non-interest revenue due to the lower partner payments on higher net credit losses. 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 3%, primarily driven by the impact of the transfer of certain relationships and the associated deposit balances to Global Wealth, partially offset by strength in deposit spreads. Average loans increased 17%, primarily driven by mortgage originations and lower refinancings due to higher interest rates. Average deposits decreased 4%, largely reflecting the transfer of certain relationships and the associated deposit balances to Global Wealth.
Global Wealth revenues increased 2%, primarily driven by higher investment product revenue across all regions, the benefits of the transfer of certain relationships and the associated deposit balances from Retail banking, and higher lending revenue. Average loans were largely unchanged. Average deposits decreased 1%, reflecting transfers to higher-yielding investments on Citi’s platform. Client assets increased 7%, primarily driven by increases in market valuations and net new inflows. Client advisors were largely unchanged. Private bank revenues decreased 1%, driven by higher interest rates paid on deposits, partially offset by the higher investment product revenue. Wealth at Work revenues increased 29%, driven by higher lending spreads and loan growth, primarily in mortgages, and Citigold revenues decreased 1%.
Expenses increased 5%, largely driven by risk and controls investments and severance costs, partially offset by productivity savings.
Provisions were $1.5 billion, compared to $1.1 billion in the prior-year period, largely driven by higher cost ofnet credit and higher expenses,losses, partially offset by higher revenues.
Revenuesa lower net ACL build for loans. Net credit losses increased 6%89%, primarily duereflecting ongoing normalization in cards, with Branded cards net credit losses up 103% to higher$707 million and Retail services net interest income, driven by strong loan growth incredit losses up 82% to $573 million. Both Branded cards and Retail services and higher interest rates. The increase was partially offset by lower non-interest revenue, reflecting lower investment fee revenue in Global Wealth andhigher partner payments in Retail services.
U.S. Personal Banking revenues increased 10%, reflecting higher revenues in Cards and Retail banking.
Cards revenues increased 11%. Branded cards revenues increased 10%, primarily driven by higher net interest income on higher loan balances. Branded cards new account acquisitions increased 10% and card spend volumes increased 14%. Average loans increased 12%, reflecting the higher card spend volumes.
Retail services revenues increased 12%, primarily driven by higher net interest income on higher loan balances and lower payment rates, partially offsetcredit losses are expected to reach pre-pandemic levels by the higher partner payments, reflecting higher income sharing as a resultend of higher revenues (for additional information on partner payments, see Note 5). Retail services card spend volumes increased 8% and average loans increased 9%, reflecting the higher card spend volumes.
Retail banking revenues increased 2%, largely driven by the higher interest rates and modest deposit growth. Average deposits increased 1%.
Global Wealth revenues decreased 2%, reflecting investment fee headwinds, particularly in Asia, driven by overall market volatility, partially offset by net interest income growth, driven by higher interest rates. Average deposits increased 1% and average loans were unchanged. Client assets decreased 10%, primarily driven by declines in equity market valuations. Global Wealth continued to add client advisors, which increased 5%. Private bank revenues decreased 10%, Wealth at Work revenues increased 6% and Citigold revenues increased 2%.
Expenses increased 13%, primarily driven by continued investments in Citi’s transformation, other risk and control initiatives, business-led investments and volume-driven expenses, partially offset by productivity savings.
Provisions were $1.1 billion, compared to a benefit of $201 million in the prior-year period, largely driven by a net ACL build and higher net credit losses. Net credit losses increased 13%, reflecting ongoing normalization from historically low levels, particularly in Retail services (net credit losses up 32% to $315 million).2023.
The net ACL build was $379$90 million, compared to a net release of $843$386 million in the prior-year period, primarily driven by U.S. Cardsreflecting growth in loan growth, partially offset by a release of a COVID-19–related uncertainty reserve.balances in Branded cards and Retail services. For additional information on Citi’s ACL, see “Significant Accounting Policies and Significant Estimates” below.
For additional information on U.S. Personal Banking’s Retail banking, Branded cards, Retail services and Retail servicesbanking 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 20212022 Form 10-K.
20222023 YTD vs. 20212022 YTD
Year-to-date, PBWMNet income experienced similar trends to those described above. Net income was $3.2$1.8 billion, compared to $6.1$3.2 billion in the prior-year period, largely driven by higher cost of credit and higher expenses, partially offset by higher revenues.
Revenues increased 3%8%, largely due to higher revenues in U.S. Personal Banking. U.S. Personal Banking revenues increased 5%14%, reflecting higher revenues in Cards,cards, largely driven by the same factors described above. Retail banking revenues decreased 3%, largely driven by the impact of the transfer of certain relationships and the associated deposit balances to Global Wealth. Global Wealth revenues decreased 1%4%, largely driven by investment product revenue headwinds and lower net interest income, partially offset by the same factors described above.benefits of the transfer of certain relationships and the associated deposit balances from Retail banking.
Expenses increased 13%7%, primarily driven by the same factors described above.continued investments in Citi’s transformation, other risk and controls investments and severance costs, partially offset by productivity savings.
Provisions were $2.1$4.6 billion, compared to a benefit of $928 million$2.1 billion in the prior-year period, driven by a lower net ACL release, partially offset by lower net credit losses. Net credit losses decreased 15%, driven by strong credit performance across portfolios in the first half of 2022, partially offset by thereflecting higher net credit losses, primarily driven by ongoing normalization in the third quarter of 2022.Branded cards and Retail services, as well as a net ACL build for loans.
The net ACL releasebuild was $34$925 million, primarily driven by growth in loan balances in Branded cards and Retail services, compared to a release of $3.4 billion$25 million in the prior-year period. The net ACL release primarily reflected improvement in portfolio credit quality and the continued improvement in the macroeconomic outlook in the first quarter of 2022, partially offset by net ACL builds in the second and third quarters of 2022 due to increased macroeconomic uncertainty and U.S. Cards loan growth.
LEGACY FRANCHISES
As of September 30, 2022,2023, Legacy Franchises included (i) Asia Consumer Banking (Asia Consumer), representing the consumer banking operations of the remaining 11 Asia and EMEAfive exit countries (and Australia(China, Indonesia, Korea, Poland and the Philippines, until their sale closings on June 1, 2022 and August 1, 2022, respectively; the Thailand and Malaysia sales both closed on November 1, 2022, but business activity was included in the results for all historical periods in 2021 and 2022);Russia), (ii) Mexico Consumer Banking (Mexico Consumer) and Mexico Small Business and Middle-Market Banking (Mexico SBMM), collectively Mexico Consumer/SBMM, which Citi also plans to exit; and (iii) Legacy Holdings Assets (certain North America consumer mortgage loans and other legacy assets). See Note 2 for additional information on the Philippines sale and other sales and exits.
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 provides traditional middle-market banking products and services to commercial customers through Citibanamex.
InFor information on Citi’s planned revision to its financial reporting structure as of the end of the fourth quarter of 2023, including, among other things, the creation of a new All Other category, which will include Legacy Franchises (Asia Consumer, Mexico Consumer/SBMM and Legacy Holdings Assets), see “Planned Revision to Operating Model and Financial Reporting Structure” above.
Legacy Franchises also included the following eight Asia Consumer businesses prior to their sales: Australia, until its closing in June 2022; the Philippines, until its closing in August 2022,2022; Thailand and Malaysia, until their closings in November 2022; Bahrain, until its closing in December 2022; India and Vietnam, until their closings in March 2023; and Taiwan, until its closing in August 2023.
Additionally, Citi disclosed its decision to wind down its consumer banking and local commercial banking operations in Russia, including its continued active pursuit of sales of certain Russian consumer banking portfolios. In connection with the wind-down plan, Citi expects to incur approximately $170 million in costs (excluding the impact from any portfolio sales), primarily over the next 18 months, largely driven by restructuring, vendor termination fees and other related charges. On October 28, 2022, Citihas entered into an agreement to sell a portfolio of ruble-denominated personal installment loans, totaling approximately $345 millionits consumer banking business in outstanding loan balances as of the third quarter of 2022,Indonesia and has continued to Uralsib, a Russian commercial bank.make progress on its wind-downs in China, Korea and Russia. In connection with the portfolio sale,October 2023, Citi also entered into a referralannounced the signing of an agreement to transfer to Uralsib a portfolio of ruble-denominated credit card loans, subject to customer consents. The outstanding card loans balance was approximately $320 million as of the third quarter of 2022.sell its onshore consumer wealth business in China. See Note 2 for additional information on Legacy Franchises’ consumer banking business sales and wind-downs. For additional information about Citi’s continued efforts to reduce its operations and exposureexposures in Russia, see “Executive Summary”“Institutional Clients Group” above and “Managing Global Risk—Other Risks—Country Risk—Russia” below. In addition,below, as well as “Risk Factors” in Citi’s 2022 Form 10-K.
As previously disclosed, Citi has entered into agreementsintends to sellpursue an IPO of its consumer, small business and middle-market banking operations in Mexico. Citi will retain its ICG and Private bank businesses in Bahrain, India, Indonesia, TaiwanMexico. Citi currently expects that the separation of the businesses will be completed in the second half of 2024 and Vietnam.that the IPO will take place in 2025.
At September 30, 2022,2023, on a combined basis,Legacy Franchises had 1,4571,355 retail branches, $22$20 billion in retail banking loans and $50$51 billion in deposits. In addition, the businesses had $8$9 billion in outstanding card loan balances, and Mexico SBMM had $7$8 billion in outstanding corporate loan balances. These amounts exclude approximately $17 billion of loans ($12 billion of retail banking loans and $5 billion of credit card loan balances) and $20 billion of deposits, all of which were reclassified to Other assets and Other liabilities held-for-sale (HFS) as a result of Citi’s agreements to sell its consumer banking businesses in the above-listed countries. See Note 2 for additional information.
| | | | | | | | | | | | | | | | | | | | |
| Third Quarter | | Nine Months | % Change |
| In millions of dollars, except as otherwise noted | 2022 | 2021 | % Change | 2022 | 2021 |
| Net interest income | $ | 1,385 | | $ | 1,532 | | (10) | % | $ | 4,367 | | $ | 4,716 | | (7) | % |
| Non-interest revenue | 1,169 | | 4 | | NM | 2,053 | | 1,342 | | 53 | |
| Total revenues, net of interest expense | $ | 2,554 | | $ | 1,536 | | 66 | % | $ | 6,420 | | $ | 6,058 | | 6 | % |
| Total operating expenses | $ | 1,845 | | $ | 1,748 | | 6 | % | $ | 5,952 | | $ | 5,288 | | 13 | % |
| Net credit losses on loans | $ | 164 | | $ | 289 | | (43) | % | $ | 448 | | $ | 1,262 | | (65) | % |
| Credit reserve build (release) for loans | 6 | | (327) | | NM | (168) | | (1,503) | | 89 | |
| Provision (release) for credit losses on unfunded lending commitments | (31) | | 7 | | NM | 90 | | (10) | | NM |
| Provisions for benefits and claims (PBC), HTM debt securities and other assets | 28 | | 17 | | 65 | | 78 | | 77 | | 1 | |
| Provisions (releases) for credit losses and PBC | $ | 167 | | $ | (14) | | NM | $ | 448 | | $ | (174) | | NM |
| Income (loss) from continuing operations before taxes | $ | 542 | | $ | (198) | | NM | $ | 20 | | $ | 944 | | (98) | % |
| Income taxes (benefits) | 226 | | 3 | | NM | 104 | | 333 | | (69) | |
| Income (loss) from continuing operations | $ | 316 | | $ | (201) | | NM | $ | (84) | | $ | 611 | | NM |
| Noncontrolling interests | — | | (1) | | 100 | % | — | | (6) | | 100 | % |
| Net income (loss) | $ | 316 | | $ | (200) | | NM | $ | (84) | | $ | 617 | | NM |
Balance Sheet data (in billions of dollars) | | | | | | |
| EOP assets | $ | 100 | | $ | 124 | | (19) | % | | | |
| Average assets | 103 | | 126 | | (18) | | $ | 114 | | $ | 128 | | (11) | % |
| EOP loans | 37 | | 67 | | (45) | | | | |
| EOP deposits | 50 | | 78 | | (35) | | | | |
| Efficiency ratio | 72 | % | 114 | % | | 93 | % | 87 | % | |
| Revenue by reporting unit and component | | | | | | |
| Asia Consumer | $ | 1,372 | | $ | 330 | | NM | $ | 3,039 | | $ | 2,457 | | 24 | % |
| | | | Third Quarter | | Nine Months | % Change |
| In millions of dollars, except as otherwise noted | | In millions of dollars, except as otherwise noted | 2023 | 2022 | % Change | 2023 | 2022 |
| Net interest income | | Net interest income | $ | 1,279 | | $ | 1,385 | | (8) | % | $ | 3,914 | | $ | 4,367 | | (10) | % |
| Non-interest revenue | | Non-interest revenue | 938 | | 1,169 | | (20) | | 3,078 | | 2,053 | | 50 | |
| Total revenues, net of interest expense | | Total revenues, net of interest expense | $ | 2,217 | | $ | 2,554 | | (13) | % | $ | 6,992 | | $ | 6,420 | | 9 | % |
| Total operating expenses | | Total operating expenses | $ | 1,794 | | $ | 1,845 | | (3) | % | $ | 5,324 | | $ | 5,952 | | (11) | % |
| Net credit losses on loans | | Net credit losses on loans | $ | 219 | | $ | 164 | | 34 | % | $ | 595 | | $ | 448 | | 33 | % |
| Credit reserve build (release) for loans | | Credit reserve build (release) for loans | (17) | | 6 | | NM | 60 | | (168) | | NM |
| Provision (release) for credit losses on unfunded lending commitments | | Provision (release) for credit losses on unfunded lending commitments | (5) | | (31) | | 84 | | (33) | | 90 | | NM |
| Provisions for benefits and claims (PBC), HTM debt securities and other assets | | Provisions for benefits and claims (PBC), HTM debt securities and other assets | (9) | | 28 | | NM | 211 | | 78 | | NM |
| Provisions (releases) for credit losses and PBC | | Provisions (releases) for credit losses and PBC | $ | 188 | | $ | 167 | | 13 | % | $ | 833 | | $ | 448 | | 86 | % |
| Income (loss) from continuing operations before taxes | | Income (loss) from continuing operations before taxes | $ | 235 | | $ | 542 | | (57) | % | $ | 835 | | $ | 20 | | NM |
| Income taxes | | Income taxes | 108 | | 226 | | (52) | | 224 | | 104 | | NM |
| Income (loss) from continuing operations | | Income (loss) from continuing operations | $ | 127 | | $ | 316 | | (60) | % | $ | 611 | | $ | (84) | | NM |
| Noncontrolling interests | | Noncontrolling interests | 2 | | — | | — | | 7 | | — | | — | % |
| Net income (loss) | | Net income (loss) | $ | 125 | | $ | 316 | | (60) | % | $ | 604 | | $ | (84) | | NM |
Balance Sheet data (in billions of dollars) | | Balance Sheet data (in billions of dollars) | | | | |
| EOP assets | | EOP assets | $ | 80 | | $ | 100 | | (20) | % | | |
| Average assets | | Average assets | 87 | | 103 | | (16) | | $ | 92 | | $ | 114 | | (19) | % |
| EOP loans | | EOP loans | 37 | | 37 | | — | | | |
| EOP deposits | | EOP deposits | 51 | | 50 | | 1 | | | |
| Efficiency ratio | | Efficiency ratio | 81 | % | 72 | % | | 76 | % | 93 | % | |
| Revenue by reporting unit and component | | Revenue by reporting unit and component | | | |
| Asia Consumer | | Asia Consumer | $ | 672 | | $ | 1,372 | | (51) | % | $ | 2,635 | | $ | 3,039 | | (13) | % |
| Mexico Consumer/SBMM | Mexico Consumer/SBMM | 1,173 | | 1,162 | | 1 | % | 3,496 | | 3,483 | | — | | Mexico Consumer/SBMM | 1,552 | | 1,173 | | 32 | | 4,323 | | 3,496 | | 24 | |
| Legacy Holdings Assets | Legacy Holdings Assets | 9 | | 44 | | (80) | | (115) | | 118 | | NM | Legacy Holdings Assets | (7) | | 9 | | NM | 34 | | (115) | | NM |
| Total | Total | $ | 2,554 | | $ | 1,536 | | 66 | % | $ | 6,420 | | $ | 6,058 | | 6 | % | Total | $ | 2,217 | | $ | 2,554 | | (13) | % | $ | 6,992 | | $ | 6,420 | | 9 | % |
NM Not meaningful
3Q23 vs. 3Q213Q22
Net income was $316$125 million, compared to a net loss of $200$316 million in the prior-year period, primarily driven by higherlower revenues partially offset by higher expenses and higher cost of credit.credit, partially offset by lower expenses.
Results for the third quarter of 2023 included divestiture-related impacts of approximately $299 million in earnings before taxes (approximately $214 million after-tax), reflecting the following:
•$396 million of aggregate divestiture-related revenues, primarily related to a gain on sale of the Taiwan consumer business, recorded in Other revenue
•$114 million of aggregate divestiture-related expenses, largely relating to separation costs in Mexico Consumer/SBMM and severance costs in Asia Consumer
•$(17) million benefit of divestiture-related credit costs
•$85 million of related taxes
Results for the third quarter of 2022 included Asia Consumer divestiture-related impacts of approximately $520$519 million (approximately $256 million after-tax), reflecting the following:
•$614 million of aggregate divestiture-related revenues, primarily driven by therelated to a gain on sale of the Philippines consumer business, and other Asia consumer exits, whichrecorded in Other revenue
•$107 million of aggregate divestiture-related expenses, primarily consistedcomposed of (i)transaction costs (recognized as an approximate $616 millionoperating expense) associated with the Philippines gain on sale, recorded in revenuesas well as severance and (ii) an approximate $107related costs associated with Asia Consumer
•$(12) million benefit of divestiture-related credit costs
•$263 million of aggregate divestiture-related costs. Third quarter of 2021 results included Asia divestiture-related impacts of $(680) million (approximately $(580) million after-tax)related taxes
Revenues decreased 13%, primarily driven by a loss on sale of the Australia consumer business.
Revenues increased 66%, primarily due to the gain on sale of the Philippines consumer business versus the loss on sale of the Australia consumer businesslower revenues in the prior-year period.Asia Consumer, partially offset by higher revenues in Mexico Consumer/SBMM.
Asia Consumer revenues of $672 million decreased from $1.4 billion increased from $330 million in the prior-year period, primarilymainly driven by the Philippineslower gain on sale versus the Australia loss on saleimpacts in the prior-year period, as well as the impacts of the Korea wind-downAsia Consumer and the loss of revenuesreduction from the exits of the Australiaexited markets and Philippines consumer businesses.continued wind-downs.
Mexico Consumer/SBMM revenues increased 1%32%, as cards revenues increased 10% and46%, SBMM revenues increased 15%27% and retail banking revenues increased 28%, primarily due to the benefit of FX translation as well as higher interest rates and higher lending volumes. The increase in revenues was partially offset by a 4% decrease in retail banking revenues, primarily driven by lower fiduciary fees reflecting declines in equity market valuations.
Legacy Holdings Assets revenues of $(7) million decreased $35from $9 million fromin the prior-year period, largely driven by the continued wind-down of legacy assets.
Expenses increased 6%decreased 3%, mainly driven by higher divestiture-related expensesthe impact of the exited markets and continued wind-downs, partially offset by separation costs and the impact of FX translation in Asia Consumer and Mexico Consumer/SBMM.
Provisionswere $167$188 million, compared to a benefit of $14$167 million in the prior-year period, primarily driven by higher net credit losses, partially offset by a lower net ACL release partially offset by lower net credit losses.in the current quarter. Net credit losses decreased 43%increased 34%, primarily reflecting improved delinquencieslargely driven by the ongoing normalization in both Asia Consumer andthe Mexico Consumer and the reclassification of loans and net credit losses to reflect HFS accounting as a result of the signing of sale agreements for consumer banking businesses in Asia and EMEA.portfolios.
The net ACL release was $25 million, compared to a net release of $320 million in the prior-year period. For additional information on Citi’s ACL, see “Significant Accounting Policies and Significant Estimates” below.
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 20212022 Form 10-K.
20222023 YTD vs. 20212022 YTD
Net lossincome was $84$604 million, compared to a net incomeloss of $617$84 million in the prior-year period, primarily driven by higher expensesrevenues and higher cost of credit,lower expenses, partially offset by higher revenues.cost of credit.
Results for year-to-date 2023 included divestiture-related impacts of approximately $1.2 billion (approximately $770 million after-tax), reflecting the following:
•$1.4 billion of net divestiture gains, primarily related to the gain on sales of the India and Taiwan consumer banking businesses, recorded in Other revenue
•$266 million of aggregate divestiture-related expenses
•$(37) million benefit of divestiture-related credit costs
•$409 million of related taxes
Results for year-to-date 2022 included Asia Consumer divestiture-related impacts of approximately $(110) million (approximately $(297) million after-tax), whichreflecting the following:
•$645 million of net divestiture gains, primarily consisted of (i) the approximaterelated to a $616 million Philippines gain on sale of the Philippines consumer banking business, recorded in Other revenue in the third quarter of 2022; (ii) an approximate $(88) million incremental Australia consumer banking loss on sale recorded in revenues for year-to-date 2022; (iii) an approximate $1072022
•$638 million of aggregate Asia Consumer divestiture-related costs in the third quarter of 2022; and (iv) an approximateexpenses, including a $535 million goodwill write-down recorded in expensesimpairment in the first quarter of 2022. Results for year-to-date 2021 included2022
•$117 million of divestiture-related impactscredit costs
•$187 million of $(680) million (approximately $(580) million after-tax), primarily driven by a loss on sale of the Australia consumer business.related taxes
Revenues increased 6%9%, reflecting the Philippines gain on sale versus the Australia loss on sale, as well as the impacts of the Korea wind-downdriven by higher revenues in Mexico Consumer/SBMM and the loss ofLegacy Holdings Assets, partially offset by lower revenues from the exits of the Australia and Philippines consumer businesses.in Asia Consumer.
Asia Consumer revenues increased 24%decreased 13%, primarily driven by the same factors described above.reduction from exited markets and wind-downs, partially offset by higher gain on sale impacts in the current-year period. Mexico Consumer/SBMM revenues were largely unchanged.increased 24%, mainly due to the benefit of FX translation as well as higher interest rates and higher lending volumes. Legacy Holdings Assets revenues of $(115)$34 million decreasedincreased from $118$(115) million in the prior-year period, largelyprimarily driven by a second quarter of 2022the release of a CTA loss (net of hedges) recorded in AOCI related toin the substantial liquidationsecond quarter of a legacy U.K. consumer operation (for additional information, see “Corporate/Other” below and Note 2), as well as the continued wind-down of legacy assets.2022.
Expenses increased 13%decreased 11%, primarilymainly driven by divestiture-related expenses in the current period, includingabsence of the goodwill impairment that occurred in the first quarter of 2022 as well as impairmentand the impact of long-lived assets related to the Russia consumer banking business in the second quarter of 2022, partially offset by lower expenses related to the Asia Consumer exit markets.exited markets and continued wind-downs.
Provisions were $448$833 million, compared to a benefit of $174$448 million in the prior-year period, driven by a lower net ACL release, partially offset by lowerhigher lending volumes and net credit losses. The net ACL release was $78 million, comparedlosses in Mexico Consumer, as well as a build for other assets, primarily related to a release of $1.5 billionan increase in transfer risk associated with exposures outside the prior-year period.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. For information on Citi’s planned revision to its financial reporting structure as of the end of the fourth quarter of 2023, including, among other things, the creation of a new All Other category, which will include Corporate/Other, see “Planned Revision to Operating Model and Financial Reporting Structure” above. At September 30, 2022,2023, Corporate/Other had $96$95 billion in assets, primarily related toincluding Corporate Treasury investment securities and the investment securities.Company’s deferred tax assets (DTAs).
| | | Third Quarter | | Nine Months | % Change | | Third Quarter | | Nine Months | % Change |
| In millions of dollars | In millions of dollars | 2022 | 2021 | % Change | 2022 | 2021 | In millions of dollars | 2023 | 2022 | % Change | 2023 | 2022 |
| Net interest income | Net interest income | $ | 772 | | $ | 247 | | NM | $ | 1,367 | | $ | 404 | | NM | Net interest income | $ | 699 | | $ | 772 | | (9) | % | $ | 2,764 | | $ | 1,367 | | NM |
| Non-interest revenue | Non-interest revenue | (473) | | (179) | | NM | (623) | | (65) | | NM | Non-interest revenue | (199) | | (473) | | 58 | | (673) | | (623) | | (8) | % |
| Total revenues, net of interest expense | Total revenues, net of interest expense | $ | 299 | | $ | 68 | | NM | $ | 744 | | $ | 339 | | NM | Total revenues, net of interest expense | $ | 500 | | $ | 299 | | 67 | % | $ | 2,091 | | $ | 744 | | NM |
| Total operating expenses | Total operating expenses | $ | 286 | | $ | 442 | | (35) | % | $ | 706 | | $ | 1,056 | | (33) | % | Total operating expenses | $ | 237 | | $ | 286 | | (17) | % | $ | 849 | | $ | 706 | | 20 | % |
| Provisions (releases) for HTM debt securities and other assets | $ | 3 | | $ | (1) | | NM | $ | 3 | | $ | (2) | | NM | |
| Provisions for HTM debt securities and other assets | | Provisions for HTM debt securities and other assets | $ | (1) | | $ | 3 | | NM | $ | (3) | | $ | 3 | | NM |
| Income (loss) from continuing operations before taxes | Income (loss) from continuing operations before taxes | $ | 10 | | $ | (373) | | NM | $ | 35 | | $ | (715) | | NM | Income (loss) from continuing operations before taxes | $ | 264 | | $ | 10 | | NM | $ | 1,245 | | $ | 35 | | NM |
| Income taxes (benefits) | Income taxes (benefits) | (211) | | (232) | | 9 | % | (651) | | (844) | | 23 | % | Income taxes (benefits) | 74 | | (211) | | NM | 435 | | (651) | | NM |
| Income (loss) from continuing operations | $ | 221 | | $ | (141) | | NM | $ | 686 | | $ | 129 | | NM | |
| Income from continuing operations | | Income from continuing operations | $ | 190 | | $ | 221 | | (14) | % | $ | 810 | | $ | 686 | | 18 | % |
| Income (loss) from discontinued operations, net of taxes | Income (loss) from discontinued operations, net of taxes | (6) | | (1) | | NM | (229) | | 7 | | NM | Income (loss) from discontinued operations, net of taxes | 2 | | (6) | | NM | — | | (229) | | 100 | |
| Net income (loss) before attribution to noncontrolling interests | $ | 215 | | $ | (142) | | NM | $ | 457 | | $ | 136 | | NM | |
| Net income before attribution to noncontrolling interests | | Net income before attribution to noncontrolling interests | $ | 192 | | $ | 215 | | (11) | % | $ | 810 | | $ | 457 | | 77 | % |
| Noncontrolling interests | Noncontrolling interests | 6 | | 1 | | NM | 9 | | — | | — | % | Noncontrolling interests | 3 | | 6 | | NM | 10 | | 9 | | 11 | |
| Net income (loss) | $ | 209 | | $ | (143) | | NM | $ | 448 | | $ | 136 | | NM | |
| Net income | | Net income | $ | 189 | | $ | 209 | | (10) | % | $ | 800 | | $ | 448 | | 79 | % |
NM Not meaningful
3Q223Q23 vs. 3Q213Q22
Net income was $209$189 million, compared to a net loss of $143$209 million in the prior-year period. The increasedecrease in net income was primarily driven by higher income tax expense due to the geographic mix of earnings, partially offset by higher revenues and lower expenses as well as the impact of certain income tax benefit items related to non-U.S. operations in the current quarter.expenses.
Revenues increased $231to $500 million, primarilycompared to $299 million in the prior-year period, largely driven by higher net revenue from the investment portfolio, due to higher interest rates, partially offset byabsence of prior-year mark-to-market losses, primarily related to retained interchange litigation risk associated with shares of Visa B common stock that Citi previously sold.
Expenses decreased 35%, primarily driven bywere $237 million, compared to $286 million in the prior-year period, largely reflecting lower consulting expenses.
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 20212022 Form 10-K.
20222023 YTD vs. 20212022 YTD
Year-to-date, Corporate/Other experienced similar trends
to those described above.Net income was $448$800 million, compared to net income of $136$448 million in the prior-year period, largely driven by the same factors described above, partially offset by the second quarter of 2022higher revenues and a prior-year release of a CTA loss (net of hedges) fromAOCI, recorded in discontinued operations, related to the substantial liquidation of a U.K. consumer legacy operation (for additional information, see “Legacy Franchises”above and Note 2). The increase in net income was partially offset by higher income tax expense due to the geographic mix of earnings and lower discrete tax benefits as well as higher expenses.
Revenues increased $405to $2.1 billion, compared to $744 million in the prior-year period, largely driven by higher net interest income from Deposits with banks and the same factors described above.investment portfolio, largely due to higher interest rates.
Expenses decreased 33%, driven by the same factors described above as well as certain settlementswere $849 million, compared to $706 million in the current period.prior-year period, primarily reflecting higher severance costs, partially offset by lower consulting expenses.
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 20212022 Form 10-K.
During the third quarter of 2022,2023, Citi returned a total of $1.0$1.5 billion of capital to common shareholders in the form of dividends.$1.0 billion in dividends and $0.5 billion in share repurchases (approximately 12 million common shares). For additional information, see “Unregistered Sales of Equity Securities, Repurchases of Equity Securities and Dividends” below.
Citi paid common dividends of $0.53 per share for the third quarter of 2023, and on October 19, 2023, declared common dividends of $0.53 per share for the fourth 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 12.3%13.6% as of September 30, 2022,2023, compared to 11.9%13.4% as of June 30, 2022 and 12.2%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, 2021,2022, 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 September 30, 2023, largely unchanged from June 30, 2023, relative to a required regulatory CET1 Capital ratio of 10.5% as of such dates under the Standardized Approach.
Citi’sAdvanced Approaches framework. This compares to a CET1 Capital ratio under the Basel III Advanced Approaches was 11.8% as of September 30, 2022, compared to 11.7% as of June 30, 2022 and 12.3%12.1% as of December 31, 2021,2022, relative to a required regulatory CET1 Capital ratio of 10.0% as of such datesdate under the Advanced Approaches framework.Approaches.
Citi’s CET1 Capital ratio increased under the Standardized Approach from June 30, 2023, driven primarily by net income and impacts from the sales of Asia Consumer businesses, 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 June 30,year-end 2022, driven primarily by net income, a decrease in risk-weighted assets and the impact related to the closing of the Philippines consumer banking sale, partially offset by the return of capital to common shareholders through dividends and interest rate impacts on Citigroup’s investment portfolio.
Citi’s CET1 Capital ratio increased under the Standardized Approach from year-end 2021 due to year-to-date net income of $12.3$11.1 billion and impacts from the impacts related to the closingsales of the Australia and Philippines consumer banking sales, and business actions, including a reduction in risk-weighted assets,Asia Consumer businesses, partially offset by interest rate impacts on Citigroup’s investment portfolio and the return of capital to common shareholders. The increase in Citi’sthe CET1 Capital ratio under the Advanced Approaches was also partially offset by the impact of the adoption of the Standardized Approach for Counterparty Credit Risk (SA-CCR) on January 1, 2022.
Citi’s CET1 Capital ratio decreased under thean increase in Advanced Approaches from year-end 2021, due to the interest rate impacts on Citigroup’s investment portfolio,the return of capital to common shareholders and the impact of the adoption of the SA-CCR, partially offset by year-to-date net income of $12.3 billion and the impact related to the closing of the Australia and Philippines consumer banking sales.
For additional information on SA-CCR, see “Capital Resources” in Citi’s First Quarter of 2022 Form 10-Q.
Stress Capital Buffer
In August 2022,July 2023, the Federal Reserve Board finalized and announcedconfirmed Citi’s Stress Capital Buffer (SCB) requirement of 4.3%, increased from 4.0%, for the four-quarter window starting from October 1, 20222023 to September 30, 2023.2024.
Accordingly, as of October 1, 2022, Citi is required to maintain an 11.5%2023, Citi’s required regulatory CET1 Capital ratio increased to 12.3% from 12.0% under the Standardized Approach, incorporating thisthe 4.3% SCB and its current GSIB surcharge of 3.0%3.5%. Citi’s required regulatory CET1 Capital ratio under the Advanced Approaches (using the fixed 2.5% Capital Conservation Buffer) remains unchanged at 10.0%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.
In addition, as previously disclosed, commencing January 1, 2023, Citi’s GSIB surcharge will increase from 3.0% to 3.5%, which will be applicable to both the Standardized and the Advanced Approaches, resulting in a required regulatory CET1 Capital ratio of 12.0% under the Standardized Approach and 10.5% under the Advanced Approaches, both as of such date.
For additional information regarding regulatory capital buffers, including the SCB and GSIB surcharge, see “Capital Resources—Regulatory Capital Buffers” in Citi’s 2021 Form 10-K. For additional information regarding CCAR and DFAST, see “Capital Resources—Stress Testing Component of Capital Planning” in Citi’s 20212022 Form 10-K.
Citigroup’s Capital Resources
The following table presents Citi’s required risk-based capital ratios as of September 30, 2022,2023, June 30, 20222023 and December 31, 2021:2022:
| | | | | | | | | | | | | | | | | | | | |
| Advanced Approaches | Standardized Approach |
| September 30, 2022 | June 30, 2022 | December 31, 2021 | September 30, 2022 | June 30, 2022 | December 31, 2021 |
Common Equity Tier 1 Capital ratio(1) | 10.0 | % | 10.0 | % | 10.0 | % | 10.5 | % | 10.5 | % | 10.5 | % |
Tier 1 Capital ratio(1) | 11.5 | | 11.5 | | 11.5 | | 12.0 | | 12.0 | | 12.0 | |
Total Capital ratio(1) | 13.5 | | 13.5 | | 13.5 | | 14.0 | | 14.0 | | 14.0 | |
| | | | | | | | | | | | | | | | | | | | |
| Advanced Approaches | Standardized Approach(1) |
| September 30,
2023 | June 30,
2023 | December 31,
2022 | September 30,
2023 | June 30,
2023 | December 31,
2022 |
CET1 Capital ratio(2) | 10.5 | % | 10.5 | % | 10.0 | % | 12.0 | % | 12.0 | % | 11.5 | % |
Tier 1 Capital ratio(2) | 12.0 | | 12.0 | | 11.5 | | 13.5 | | 13.5 | | 13.0 | |
Total Capital ratio(2) | 14.0 | | 14.0 | | 13.5 | | 15.5 | | 15.5 | | 15.0 | |
(1)As of October 1, 2023, Citi’s required regulatory CET1 Capital ratio increased from 12.0% to 12.3% under the Standardized Approach, incorporating the 4.3% SCB and its current GSIB surcharge of 3.5%.
(2)As of January 1, 2023, Citi’s required risk-based capital ratios included the 3.0% Stress Capital Buffer (SCB)4.0% SCB and 3.0%3.5% GSIB surcharge under the Standardized Approach, and the 2.5% Capital Conservation Buffer and 3.0%3.5% GSIB surcharge under the Advanced Approaches (all of which must be composed of Common Equity Tier 1CET1 Capital). These requirements were applicable through September 30, 2022.2023. See “Stress Capital Buffer” above for more information.
The following tables present Citi’s capital components and ratios:ratios as of September 30, 2023, June 30, 2023 and December 31, 2022:
| | | Advanced Approaches | Standardized Approach | | Advanced Approaches | Standardized Approach |
| In millions of dollars, except ratios | In millions of dollars, except ratios | September 30,
2022 | June 30,
2022 | December 31,
2021 | September 30,
2022 | June 30,
2022 | December 31,
2021 | In millions of dollars, except ratios | September 30,
2023 | June 30,
2023 | December 31,
2022 | September 30,
2023 | June 30,
2023 | December 31,
2022 |
Common Equity Tier 1 Capital(1) | $ | 144,567 | | $ | 144,893 | | $ | 149,305 | | $ | 144,567 | | $ | 144,893 | | $ | 149,305 | | |
CET1 Capital(1) | | CET1 Capital(1) | $ | 156,134 | | $ | 154,243 | | $ | 148,930 | | $ | 156,134 | | $ | 154,243 | | $ | 148,930 | |
Tier 1 Capital | Tier 1 Capital | 164,830 | | 165,159 | | 169,568 | | 164,830 | | 165,159 | | 169,568 | | Tier 1 Capital | 176,878 | | 175,743 | | 169,145 | | 176,878 | | 175,743 | | 169,145 | |
Total Capital (Tier 1 Capital + Tier 2 Capital)(1) | 185,046 | | 187,350 | | 194,006 | | 193,871 | | 196,408 | | 203,838 | | |
Total Capital (Tier 1 Capital + Tier 2 Capital)(1)(5) | | Total Capital (Tier 1 Capital + Tier 2 Capital)(1)(5) | 197,219 | | 198,036 | | 188,889 | | 205,932 | | 206,852 | | 197,578 | |
Total Risk-Weighted Assets | Total Risk-Weighted Assets | 1,226,578 | | 1,235,956 | | 1,209,374 | | 1,176,749 | | 1,217,459 | | 1,219,175 | | Total Risk-Weighted Assets | 1,249,606 | | 1,234,271 | | 1,233,138 | | 1,148,550 | | 1,153,450 | | 1,148,678 | |
Credit Risk(1)(5) | Credit Risk(1)(5) | $ | 849,769 | | $ | 861,298 | | $ | 840,483 | | $ | 1,096,384 | | $ | 1,135,558 | | $ | 1,135,906 | | Credit Risk(1)(5) | $ | 892,423 | | $ | 874,707 | | $ | 860,515 | | $ | 1,087,701 | | $ | 1,090,440 | | $ | 1,072,777 | |
Market Risk | Market Risk | 78,748 | | 79,912 | | 78,634 | | 80,365 | | 81,901 | | 83,269 | | Market Risk | 59,880 | | 62,261 | | 74,849 | | 60,849 | | 63,010 | | 75,901 | |
| Operational Risk | Operational Risk | 298,061 | | 294,746 | | 290,257 | | — | | — | | — | | Operational Risk | 297,303 | | 297,303 | | 297,774 | | — | | — | | — | |
Common Equity Tier 1 Capital ratio(2) | 11.79 | % | 11.72 | % | 12.35 | % | 12.29 | % | 11.90 | % | 12.25 | % | |
CET1 Capital ratio(2)(5) | | CET1 Capital ratio(2)(5) | 12.49 | % | 12.50 | % | 12.08 | % | 13.59 | % | 13.37 | % | 12.97 | % |
Tier 1 Capital ratio(2)(5) | Tier 1 Capital ratio(2)(5) | 13.44 | | 13.36 | | 14.02 | | 14.01 | | 13.57 | | 13.91 | | Tier 1 Capital ratio(2)(5) | 14.15 | | 14.24 | | 13.72 | | 15.40 | | 15.24 | | 14.73 | |
Total Capital ratio(2)(5) | Total Capital ratio(2)(5) | 15.09 | | 15.16 | | 16.04 | | 16.48 | | 16.13 | | 16.72 | | Total Capital ratio(2)(5) | 15.78 | | 16.04 | | 15.32 | | 17.93 | | 17.93 | | 17.20 | |
| | In millions of dollars, except ratios | In millions of dollars, except ratios | Required Capital Ratios | September 30, 2022 | June 30, 2022 | December 31, 2021 | In millions of dollars, except ratios | Required
Capital Ratios | September 30, 2023 | June 30, 2023 | December 31, 2022 |
Quarterly Adjusted Average Total Assets(1)(3) | Quarterly Adjusted Average Total Assets(1)(3) | | $ | 2,364,564 | | $ | 2,344,675 | | $ | 2,351,434 | | Quarterly Adjusted Average Total Assets(1)(3) | | $ | 2,378,887 | | $ | 2,429,306 | | $ | 2,395,863 | |
Total Leverage Exposure(1)(4) | Total Leverage Exposure(1)(4) | | 2,888,535 | | 2,935,289 | | 2,957,764 | | Total Leverage Exposure(1)(4) | | 2,927,392 | | 2,943,546 | | 2,906,773 | |
Tier 1 Leverage ratio(2) | 4.0 | % | 6.97 | % | 7.04 | % | 7.21 | % | |
| Leverage ratio | | Leverage ratio | 4.0 | % | 7.44 | % | 7.23 | % | 7.06 | % |
Supplementary Leverage ratio(2) | Supplementary Leverage ratio(2) | 5.0 | | 5.71 | | 5.63 | | 5.73 | | Supplementary Leverage ratio(2) | 5.0 | | 6.04 | | 5.97 | | 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 20212022 Form 10-K.
(2)Citi’s binding Common Equity Tier 1CET1 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. As of September 30, 2022, the Supplementary Leverage ratio and the Total Capital ratio under the Basel III Advanced Approaches framework became more binding than the Common Equity Tier 1 Capital ratio under the Basel III Standardized Approach. Each of Citi’s Basel III risk-based capital and leverage ratios exceeded the respective regulatory capital requirement by at least $19 billion as of September 30, 2022. Citi expects the Basel III Standardized Approach capital ratios to be more binding in future quarters due to the increased Stress Capital Buffer in the fourth quarter of 2022 and the additional GSIB surcharge in the first quarter of 2023.
(3)Tier 1 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 September 30, 20222023 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 September 30, 2022.2023.
Components of Citigroup Capital
| | In millions of dollars | In millions of dollars | September 30,
2022 | December 31,
2021 | In millions of dollars | September 30,
2023 | December 31,
2022 |
| Common Equity Tier 1 Capital | | |
| CET1 Capital | | CET1 Capital | |
Citigroup common stockholders’ equity(1) | Citigroup common stockholders’ equity(1) | $ | 179,696 | | $ | 183,108 | | Citigroup common stockholders’ equity(1) | $ | 190,134 | | $ | 182,325 | |
| Add: Qualifying noncontrolling interests | Add: Qualifying noncontrolling interests | 113 | | 143 | | Add: Qualifying noncontrolling interests | 193 | | 128 | |
| Regulatory capital adjustments and deductions: | Regulatory capital adjustments and deductions: | | Regulatory capital adjustments and deductions: | |
Add: CECL transition provision(2) | Add: CECL transition provision(2) | 2,271 | | 3,028 | | Add: CECL transition provision(2) | 1,514 | | 2,271 | |
| Less: Accumulated net unrealized gains (losses) on cash flow hedges, net of tax | Less: Accumulated net unrealized gains (losses) on cash flow hedges, net of tax | (2,869) | | 101 | | Less: Accumulated net unrealized gains (losses) on cash flow hedges, net of tax | (1,259) | | (2,522) | |
Less: Cumulative unrealized net gain (loss) related to changes in fair value of financial liabilities attributable to own creditworthiness, net of tax | Less: Cumulative unrealized net gain (loss) related to changes in fair value of financial liabilities attributable to own creditworthiness, net of tax | 3,211 | | (896) | | Less: Cumulative unrealized net gain (loss) related to changes in fair value of financial liabilities attributable to own creditworthiness, net of tax | 625 | | 1,441 | |
| Less: Intangible assets: | Less: Intangible assets: | | Less: Intangible assets: | |
Goodwill, net of related DTLs(3) | Goodwill, net of related DTLs(3) | 18,796 | | 20,619 | | Goodwill, net of related DTLs(3) | 18,552 | | 19,007 | |
Identifiable intangible assets other than MSRs, net of related DTLs | Identifiable intangible assets other than MSRs, net of related DTLs | 3,492 | | 3,800 | | Identifiable intangible assets other than MSRs, net of related DTLs | 3,444 | | 3,411 | |
| Less: Defined benefit pension plan net assets; other | Less: Defined benefit pension plan net assets; other | 1,932 | | 2,080 | | Less: Defined benefit pension plan net assets; other | 1,340 | | 1,935 | |
Less: DTAs arising from net operating loss, foreign tax credit and general business credit carry-forwards(4) | Less: DTAs arising from net operating loss, foreign tax credit and general business credit carry-forwards(4) | 11,690 | | 11,270 | | Less: DTAs arising from net operating loss, foreign tax credit and general business credit carry-forwards(4) | 11,219 | | 12,197 | |
Less: Excess over 10%/15% limitations for other DTAs, certain common stock investments, and MSRs(4)(5) | Less: Excess over 10%/15% limitations for other DTAs, certain common stock investments, and MSRs(4)(5) | 1,261 | | — | | Less: Excess over 10%/15% limitations for other DTAs, certain common stock investments, and MSRs(4)(5) | 1,786 | | 325 | |
| Total Common Equity Tier 1 Capital (Standardized Approach and Advanced Approaches) | $ | 144,567 | | $ | 149,305 | | |
| Total CET1 Capital (Standardized Approach and Advanced Approaches) | | Total CET1 Capital (Standardized Approach and Advanced Approaches) | $ | 156,134 | | $ | 148,930 | |
| Additional Tier 1 Capital | Additional Tier 1 Capital | | Additional Tier 1 Capital | |
Qualifying noncumulative perpetual preferred stock(1) | Qualifying noncumulative perpetual preferred stock(1) | $ | 18,864 | | $ | 18,864 | | Qualifying noncumulative perpetual preferred stock(1) | $ | 19,369 | | $ | 18,864 | |
Qualifying trust preferred securities(6) | Qualifying trust preferred securities(6) | 1,404 | | 1,399 | | Qualifying trust preferred securities(6) | 1,412 | | 1,406 | |
| Qualifying noncontrolling interests | Qualifying noncontrolling interests | 27 | | 34 | | Qualifying noncontrolling interests | 28 | | 30 | |
| Regulatory capital deductions: | Regulatory capital deductions: | | Regulatory capital deductions: | |
| Less: Other | Less: Other | 32 | | 34 | | Less: Other | 65 | | 85 | |
| Total Additional Tier 1 Capital (Standardized Approach and Advanced Approaches) | Total Additional Tier 1 Capital (Standardized Approach and Advanced Approaches) | $ | 20,263 | | $ | 20,263 | | Total Additional Tier 1 Capital (Standardized Approach and Advanced Approaches) | $ | 20,744 | | $ | 20,215 | |
Total Tier 1 Capital (Common Equity Tier 1 Capital + Additional Tier 1 Capital) (Standardized Approach and Advanced Approaches) | $ | 164,830 | | $ | 169,568 | | |
Total Tier 1 Capital (CET1 Capital + Additional Tier 1 Capital) (Standardized Approach and Advanced Approaches) | | Total Tier 1 Capital (CET1 Capital + Additional Tier 1 Capital) (Standardized Approach and Advanced Approaches) | $ | 176,878 | | $ | 169,145 | |
| Tier 2 Capital | Tier 2 Capital | | Tier 2 Capital | |
| Qualifying subordinated debt | Qualifying subordinated debt | $ | 15,679 | | $ | 20,064 | | Qualifying subordinated debt | $ | 16,112 | | $ | 15,530 | |
Qualifying trust preferred securities(7) | — | | 248 | | |
| Qualifying noncontrolling interests | Qualifying noncontrolling interests | 33 | | 42 | | Qualifying noncontrolling interests | 34 | | 37 | |
Eligible allowance for credit losses(2)(8) | 13,752 | | 14,209 | | |
Eligible allowance for credit losses(2)(7)(8) | | Eligible allowance for credit losses(2)(7)(8) | 13,688 | | 13,461 | |
| Regulatory capital deduction: | Regulatory capital deduction: | | Regulatory capital deduction: | |
| Less: Other | Less: Other | 423 | | 293 | | Less: Other | 780 | | 595 | |
| Total Tier 2 Capital (Standardized Approach) | $ | 29,041 | | $ | 34,270 | | |
| Total Capital (Tier 1 Capital + Tier 2 Capital) (Standardized Approach) | $ | 193,871 | | $ | 203,838 | | |
Adjustment for excess of eligible credit reserves over expected credit losses(2)(8) | $ | (8,825) | | $ | (9,832) | | |
| Total Tier 2 Capital (Advanced Approaches) | $ | 20,216 | | $ | 24,438 | | |
| Total Capital (Tier 1 Capital + Tier 2 Capital) (Advanced Approaches) | $ | 185,046 | | $ | 194,006 | | |
Total Tier 2 Capital (Standardized Approach)(8) | | Total Tier 2 Capital (Standardized Approach)(8) | $ | 29,054 | | $ | 28,433 | |
Total Capital (Tier 1 Capital + Tier 2 Capital) (Standardized Approach)(8) | | Total Capital (Tier 1 Capital + Tier 2 Capital) (Standardized Approach)(8) | $ | 205,932 | | $ | 197,578 | |
Adjustment for excess of eligible credit reserves over expected credit losses(2)(7)(8) | | Adjustment for excess of eligible credit reserves over expected credit losses(2)(7)(8) | $ | (8,713) | | $ | (8,689) | |
Total Tier 2 Capital (Advanced Approaches)(8) | | Total Tier 2 Capital (Advanced Approaches)(8) | $ | 20,341 | | $ | 19,744 | |
Total Capital (Tier 1 Capital + Tier 2 Capital) (Advanced Approaches)(8) | | Total Capital (Tier 1 Capital + Tier 2 Capital) (Advanced Approaches)(8) | $ | 197,219 | | $ | 188,889 | |
(1)Issuance costs of $126 million and $131 million related to outstanding noncumulative perpetual preferred stock at September 30, 20222023 and December 31, 20212022, respectively, were excluded from common stockholders’ equity and were 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 current expected credit losses (CECL)CECL standard. For additional information, see “Capital Resources—Regulatory Capital Treatment—Modified Transition of the Current Expected Credit Losses Methodology” in Citi’s 20212022 Form 10-K.
(3)Includes goodwill “embedded” in the valuation of significant common stock investments in unconsolidated financial institutions.
Footnotes continue on the following page.
(4)Of Citi’s $27.1$28.3 billion of net DTAs at September 30, 2022, $11.72023, $11.2 billion of net DTAs arising from net operating loss, foreign tax credit and general business credit tax carry-forwards, as well as $1.3$1.8 billion of DTAs arising from temporary differences that exceeded 10%/15% limitations, were excluded from Citi’s Common Equity Tier 1CET1 Capital as of September 30, 2022.2023. DTAs arising from net operating loss, foreign tax credit and general business credit tax carry-forwards are required to be entirely deducted from Common Equity Tier 1CET1 Capital under the U.S. Basel III rules. DTAs arising from temporary differences are required to be deducted from capital only if these DTAsthey 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 September 30, 2023 and December 31, 2022, this deduction related only to DTAs arising from temporary differences that exceeded the 10% limitation. At December 31, 2021, none of these assets were in excess of the 10%/15% limitations.
(6)Represents Citigroup Capital XIII trust preferred securities, which are permanently grandfathered as Tier 1 Capital under the U.S. Basel III rules.
(7)Represents the amount of non-grandfathered trust preferred securities that were previously eligible for inclusion in Tier 2 Capital under the U.S. Basel III rules. Commencing January 1, 2022, non-grandfathered trust preferred securities have been fully phased out of Tier 2 Capital.
(8)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$5.0 billion and $4.4$4.8 billion at September 30, 20222023 and December 31, 2021,2022, respectively.
(8)Certain of the above prior-period amounts have been revised to conform with enhancements made in the current period.
Citigroup Capital Rollforward
| | In millions of dollars | In millions of dollars | Three Months Ended
September 30, 2022 | Nine Months Ended
September 30, 2022 | In millions of dollars | Three Months Ended
September 30, 2023 | Nine Months Ended September 30, 2023 | |
| Common Equity Tier 1 Capital, beginning of period | $ | 144,893 | | $ | 149,305 | | |
| CET1 Capital, beginning of period | | CET1 Capital, beginning of period | $ | 154,243 | | $ | 148,930 | | |
| Net income | Net income | 3,479 | | 12,332 | | Net income | 3,546 | | 11,067 | | |
| Common and preferred dividends declared | Common and preferred dividends declared | (1,278) | | (3,819) | | Common and preferred dividends declared | (1,371) | | (3,940) | | |
| Net change in treasury stock | 11 | | (2,737) | | |
| Net increase in treasury stock | | Net increase in treasury stock | (491) | | (771) | | |
| Net increase in common stock and additional paid-in capital | Net increase in common stock and additional paid-in capital | 137 | | 344 | | Net increase in common stock and additional paid-in capital | 168 | | 294 | | |
| Net change in foreign currency translation adjustment net of hedges, net of tax | (2,399) | | (4,043) | | |
| Net change in CTA net of hedges, net of tax | | Net change in CTA net of hedges, net of tax | (1,496) | | (631) | | |
| Net change in unrealized gains (losses) on debt securities AFS, net of tax | Net change in unrealized gains (losses) on debt securities AFS, net of tax | (580) | | (6,358) | | Net change in unrealized gains (losses) on debt securities AFS, net of tax | (169) | | 793 | | |
| Net decrease in defined benefit plans liability adjustment, net of tax | Net decrease in defined benefit plans liability adjustment, net of tax | 37 | | 119 | | Net decrease in defined benefit plans liability adjustment, net of tax | 312 | | 72 | | |
| Net change in adjustment related to change in fair value of financial liabilities attributable to own creditworthiness, net of tax | Net change in adjustment related to change in fair value of financial liabilities attributable to own creditworthiness, net of tax | (194) | | (475) | | Net change in adjustment related to change in fair value of financial liabilities attributable to own creditworthiness, net of tax | (19) | | 170 | | |
| Net decrease in excluded component of fair value hedges | 30 | | 87 | | |
Net change in other Accumulated other comprehensive income (loss) (AOCI) | | Net change in other Accumulated other comprehensive income (loss) (AOCI) | 11 | | 34 | | |
| Net decrease in goodwill, net of related DTLs | Net decrease in goodwill, net of related DTLs | 708 | | 1,823 | | Net decrease in goodwill, net of related DTLs | 381 | | 455 | | |
| Net decrease in identifiable intangible assets other than MSRs, net of related DTLs | 107 | | 308 | | |
| Net change in identifiable intangible assets other than MSRs, net of related DTLs | | Net change in identifiable intangible assets other than MSRs, net of related DTLs | 87 | | (33) | | |
| Net decrease in defined benefit pension plan net assets | Net decrease in defined benefit pension plan net assets | 50 | | 68 | | Net decrease in defined benefit pension plan net assets | 663 | | 604 | | |
| Net increase in DTAs arising from net operating loss, foreign tax credit and general business credit carry-forwards | (11) | | (420) | | |
| Net increase in excess over 10%/15% limitations for other DTAs, certain common stock investments and MSRs | (463) | | (1,261) | | |
| Net change in CECL transition provision | — | | (757) | | |
| Net decrease in DTAs arising from net operating loss, foreign tax credit and general business credit carry-forwards | | Net decrease in DTAs arising from net operating loss, foreign tax credit and general business credit carry-forwards | 242 | | 978 | | |
| Net change in excess over 10%/15% limitations for other DTAs, certain common stock investments and MSRs | | Net change in excess over 10%/15% limitations for other DTAs, certain common stock investments and MSRs | 42 | | (1,461) | | |
| Net decrease in CECL transition provision | | Net decrease in CECL transition provision | — | | (757) | | |
| Other | Other | 40 | | 51 | | Other | (15) | | 330 | | |
| Net decrease in Common Equity Tier 1 Capital | $ | (326) | | $ | (4,738) | | |
Common Equity Tier 1 Capital, end of period (Standardized Approach and Advanced Approaches) | $ | 144,567 | | $ | 144,567 | | |
| Net increase in CET1 Capital | | Net increase in CET1 Capital | $ | 1,891 | | $ | 7,204 | | |
CET1 Capital, end of period (Standardized Approach and Advanced Approaches) | | CET1 Capital, end of period (Standardized Approach and Advanced Approaches) | $ | 156,134 | | $ | 156,134 | | |
| Additional Tier 1 Capital, beginning of period | Additional Tier 1 Capital, beginning of period | $ | 20,266 | | $ | 20,263 | | Additional Tier 1 Capital, beginning of period | $ | 21,500 | | $ | 20,215 | | |
| Net change in qualifying perpetual preferred stock | | Net change in qualifying perpetual preferred stock | (740) | | 505 | | |
| Net increase in qualifying trust preferred securities | Net increase in qualifying trust preferred securities | 1 | | 5 | | Net increase in qualifying trust preferred securities | 2 | | 6 | | |
| Other | Other | (4) | | (5) | | Other | (18) | | 18 | | |
| Net change in Additional Tier 1 Capital | Net change in Additional Tier 1 Capital | $ | (3) | | $ | — | | Net change in Additional Tier 1 Capital | $ | (756) | | $ | 529 | | |
Tier 1 Capital, end of period (Standardized Approach and Advanced Approaches) | Tier 1 Capital, end of period (Standardized Approach and Advanced Approaches) | $ | 164,830 | | $ | 164,830 | | Tier 1 Capital, end of period (Standardized Approach and Advanced Approaches) | $ | 176,878 | | $ | 176,878 | | |
| Tier 2 Capital, beginning of period (Standardized Approach) | $ | 31,249 | | $ | 34,270 | | |
| Net decrease in qualifying subordinated debt | (1,659) | | (4,385) | | |
| Net decrease in eligible allowance for credit losses | (474) | | (457) | | |
Tier 2 Capital, beginning of period (Standardized Approach)(1) | | Tier 2 Capital, beginning of period (Standardized Approach)(1) | $ | 31,109 | | $ | 28,433 | | |
| Net change in qualifying subordinated debt | | Net change in qualifying subordinated debt | (1,557) | | 582 | | |
| Net change in eligible allowance for credit losses | | Net change in eligible allowance for credit losses | (27) | | 227 | | |
| Other | Other | (75) | | (387) | | Other | (471) | | (188) | | |
| Net decrease in Tier 2 Capital (Standardized Approach) | $ | (2,208) | | $ | (5,229) | | |
| Net change in Tier 2 Capital (Standardized Approach) | | Net change in Tier 2 Capital (Standardized Approach) | $ | (2,055) | | $ | 621 | | |
| Tier 2 Capital, end of period (Standardized Approach) | Tier 2 Capital, end of period (Standardized Approach) | $ | 29,041 | | $ | 29,041 | | Tier 2 Capital, end of period (Standardized Approach) | $ | 29,054 | | $ | 29,054 | | |
| Total Capital, end of period (Standardized Approach) | Total Capital, end of period (Standardized Approach) | $ | 193,871 | | $ | 193,871 | | Total Capital, end of period (Standardized Approach) | $ | 205,932 | | $ | 205,932 | | |
| Tier 2 Capital, beginning of period (Advanced Approaches) | $ | 22,191 | | $ | 24,438 | | |
| Net decrease in qualifying subordinated debt | (1,659) | | (4,385) | | |
| Net change in excess of eligible credit reserves over expected credit losses | (241) | | 550 | | |
Tier 2 Capital, beginning of period (Advanced Approaches)(1) | | Tier 2 Capital, beginning of period (Advanced Approaches)(1) | $ | 22,293 | | $ | 19,744 | | |
| Net change in qualifying subordinated debt | | Net change in qualifying subordinated debt | (1,557) | | 582 | | |
| Net increase in excess of eligible credit reserves over expected credit losses | | Net increase in excess of eligible credit reserves over expected credit losses | 76 | | 203 | | |
| Other | Other | (75) | | (387) | | Other | (471) | | (188) | | |
| Net decrease in Tier 2 Capital (Advanced Approaches) | $ | (1,975) | | $ | (4,222) | | |
| Net change in Tier 2 Capital (Advanced Approaches) | | Net change in Tier 2 Capital (Advanced Approaches) | $ | (1,952) | | $ | 597 | | |
| Tier 2 Capital, end of period (Advanced Approaches) | Tier 2 Capital, end of period (Advanced Approaches) | $ | 20,216 | | $ | 20,216 | | Tier 2 Capital, end of period (Advanced Approaches) | $ | 20,341 | | $ | 20,341 | | |
| Total Capital, end of period (Advanced Approaches) | Total Capital, end of period (Advanced Approaches) | $ | 185,046 | | $ | 185,046 | | Total Capital, end of period (Advanced Approaches) | $ | 197,219 | | $ | 197,219 | | |
Citigroup Risk-Weighted Assets Rollforward (Basel III Standardized Approach)
| | In millions of dollars | In millions of dollars | Three Months Ended
September 30, 2022 | Nine Months Ended
September 30, 2022 | In millions of dollars | Three Months Ended
September 30, 2023 | Nine Months Ended September 30, 2023 | |
Total Risk-Weighted Assets, beginning of period | Total Risk-Weighted Assets, beginning of period | $ | 1,217,459 | | $ | 1,219,175 | | Total Risk-Weighted Assets, beginning of period | $ | 1,153,450 | | $ | 1,148,678 | | |
| Changes in Credit Risk-Weighted Assets | Changes in Credit Risk-Weighted Assets | | Changes in Credit Risk-Weighted Assets | | |
General credit risk exposures(1)(2) | General credit risk exposures(1)(2) | (18,472) | | (21,818) | | General credit risk exposures(1)(2) | (1,853) | | (8,015) | | |
Repo-style transactions(2) | (3,162) | | (15,077) | | |
Securitization exposures(3) | 2,794 | | 1,958 | | |
Equity exposures(4) | (1,402) | | (3,298) | | |
Over-the-counter (OTC) derivatives(5) | (4,477) | | 22,701 | | |
Derivatives(3) | | Derivatives(3) | (2,447) | | 3,509 | | |
Repo-style transactions(4) | | Repo-style transactions(4) | (1,571) | | 10,032 | | |
| Securitization exposures | | Securitization exposures | 447 | | 539 | | |
Equity exposures(5) | | Equity exposures(5) | 108 | | 2,485 | | |
Other exposures(6) | Other exposures(6) | (6,702) | | (8,807) | | Other exposures(6) | 2,577 | | 6,374 | | |
Off-balance sheet exposures(7) | (7,753) | | (15,181) | | |
| Net decrease in Credit Risk-Weighted Assets | $ | (39,174) | | $ | (39,522) | | |
| Net change in Credit Risk-Weighted Assets | | Net change in Credit Risk-Weighted Assets | $ | (2,739) | | $ | 14,924 | | |
| Changes in Market Risk-Weighted Assets | Changes in Market Risk-Weighted Assets | | Changes in Market Risk-Weighted Assets | | |
| Risk levels | Risk levels | $ | (3,129) | | $ | (6,988) | | Risk levels | $ | (1,964) | | $ | (7,749) | | |
| Model and methodology updates | Model and methodology updates | 1,593 | | 4,084 | | Model and methodology updates | (197) | | (7,303) | | |
| Net decrease in Market Risk-Weighted Assets | $ | (1,536) | | $ | (2,904) | | |
Net decrease in Market Risk-Weighted Assets(7) | | Net decrease in Market Risk-Weighted Assets(7) | $ | (2,161) | | $ | (15,052) | | |
| Total Risk-Weighted Assets, end of period | Total Risk-Weighted Assets, end of period | $ | 1,176,749 | | $ | 1,176,749 | | Total Risk-Weighted Assets, end of period | $ | 1,148,550 | | $ | 1,148,550 | | |
(1)Certain of the above prior-period amounts have been revised to conform with enhancements made in the current period.
(2)General credit risk exposures include cash and balances due from depository institutions, securities, and loans and leases. General credit risk exposures decreased during the three and nine months ended September 30, 20222023, primarily due to a decrease in wholesale loans.driven by divestitures and non-strategic portfolio exits.
(2)(3)Derivative exposures decreased during the three months ended September 30, 2023, primarily driven by reduced exposures in FX. Derivative exposures increased during the nine months ended September 30, 2023, mainly driven by movements in rates and currencies.
(4)Repo-style transactions include repurchase and reverse repurchase transactions, as well as securities borrowing and securities lending transactions. Repo-style transactions decreased during the three months ended September 30, 2022 primarily due to a decrease in margin loans, as well as reduced exposure in securities lending. Repo-style transactions decreased during the nine months ended September 30, 2022 primarily due to reduced exposure in repurchase agreements and securities lending, as well as a decrease in margin loans.
(3)Securitization exposures increased during the three months ended September 30, 2022 primarily due to new issuances.
(4)Equity exposures decreased during the nine months ended September 30, 2022 primarily due to decreases in market share prices of various investments.
(5)OTC derivatives decreased during the three months ended September 30, 2022 primarily due to decreases in commodities and rates. OTC derivatives increased during the nine months ended September 30, 20222023, mainly due to increased business activities.
(5)Equity exposures increased during the nine months ended September 30, 2023, primarily due to the adoption of SA-CCR, partially offset by decreasesincreases in commodities, rates, FX and equities. For additional information on SA-CCR, see “Capital Resources” in Citi’s First Quarter of 2022 Form 10-Q.investment market share prices.
(6)Other exposures include cleared transactions, unsettled transactionsincreased during the three and nine months ended September 30, 2023, mainly driven by increases across accounts receivables, prepaid expenses and other assets. Other exposures
(7)Market risk-weighted assets decreased during the three and nine months ended September 30, 20222023, primarily due to a decreaseexposure changes and changes in cleared derivatives.
(7)Off-balance sheet exposures decreased during the threemodel inputs related to volatility and nine months ended September 30, 2022 primarily due to a decrease in loan commitments.correlation between market risk factors.
Citigroup Risk-Weighted Assets Rollforward (Basel III Advanced Approaches)
| | In millions of dollars | In millions of dollars | Three Months Ended
September 30, 2022 | Nine Months Ended
September 30, 2022 | In millions of dollars | Three Months Ended
September 30, 2023 | Nine Months Ended September 30, 2023 | |
Total Risk-Weighted Assets, beginning of period | Total Risk-Weighted Assets, beginning of period | $ | 1,235,956 | | $ | 1,209,374 | | Total Risk-Weighted Assets, beginning of period | $ | 1,234,271 | | $ | 1,233,138 | | |
| Changes in Credit Risk-Weighted Assets | Changes in Credit Risk-Weighted Assets | | Changes in Credit Risk-Weighted Assets | | |
Retail exposures(1) | 3,832 | | 8,023 | | |
Wholesale exposures(2) | (13,067) | | (16,937) | | |
General credit risk exposures(2) | | General credit risk exposures(2) | 9,320 | | 22,450 | | |
Derivatives(3) | | Derivatives(3) | 5,161 | | (6,228) | | |
Repo-style transactions(3)(4) | Repo-style transactions(3)(4) | (1,411) | | (11,084) | | Repo-style transactions(3)(4) | (806) | | 1,698 | | |
| Securitization exposures | Securitization exposures | 1,665 | | 2,141 | | Securitization exposures | 446 | | 1,407 | | |
Equity exposures | Equity exposures | (1,324) | | (2,847) | | Equity exposures | (77) | | 2,751 | | |
Over-the-counter (OTC) derivatives(4) | (743) | | 9,262 | | |
Derivatives CVA(5) | 5,493 | | 21,734 | | |
Other exposures(6) | Other exposures(6) | (5,010) | | (301) | | Other exposures(6) | 3,672 | | 9,830 | | |
| Supervisory 6% multiplier | (964) | | (705) | | |
| Net change in Credit Risk-Weighted Assets | $ | (11,529) | | $ | 9,286 | | |
| Net increase in Credit Risk-Weighted Assets | | Net increase in Credit Risk-Weighted Assets | $ | 17,716 | | $ | 31,908 | | |
| Changes in Market Risk-Weighted Assets | Changes in Market Risk-Weighted Assets | | Changes in Market Risk-Weighted Assets | | |
| Risk levels | Risk levels | $ | (2,757) | | $ | (3,969) | | Risk levels | $ | (2,184) | | $ | (7,666) | | |
| Model and methodology updates | Model and methodology updates | 1,593 | | 4,083 | | Model and methodology updates | (197) | | (7,303) | | |
| Net change in Market Risk-Weighted Assets | $ | (1,164) | | $ | 114 | | |
Net increase in Operational Risk-Weighted Assets(7) | $ | 3,315 | | $ | 7,804 | | |
Net decrease in Market Risk-Weighted Assets(7) | | Net decrease in Market Risk-Weighted Assets(7) | $ | (2,381) | | $ | (14,969) | | |
| Net decrease in Operational Risk-Weighted Assets | | Net decrease in Operational Risk-Weighted Assets | $ | — | | $ | (471) | | |
| Total Risk-Weighted Assets, end of period | Total Risk-Weighted Assets, end of period | $ | 1,226,578 | | $ | 1,226,578 | | Total Risk-Weighted Assets, end of period | $ | 1,249,606 | | $ | 1,249,606 | | |
(1)Retail exposures increased duringCertain of the three months ended September 30, 2022 primarily dueabove prior-period amounts have been revised to an increaseconform with enhancements made in consumer loans. Retail exposures increased during the nine months ended September 30, 2022 primarily due to increases in consumer loans and model recalibrations.current period.
(2)WholesaleGeneral credit risk exposures decreased during the three and nine months ended September 30, 20222023, mainly driven by lending as well as card activities.
(3)Derivative exposures increased during the three months ended September 30, 2023, primarily due to decreasesan increase in wholesale loans and available-for-sale securities.
(3)Repo-style transactions include repurchase and reverse repurchase transactions as well as securities borrowing and securities lending transactions. Repo-style transactionsCVA. Derivative exposures decreased during the nine months ended September 30, 2022 primarily due to reduced exposure in repurchase agreements2023, driven by reductions across default risk and securities lending, as well as a decrease in margin loans.CVA.
(4)OTC derivativesRepo-style transactions increased during the nine months ended September 30, 2022 primarily2023, mainly due to the adoption of SA-CCR. For additional information on SA-CCR, see “Capital Resources” in Citi’s First Quarter of 2022 Form 10-Q.increased business activities.
(5)Derivatives CVA increased during the three months ended September 30, 2022 primarily due to an increase in equities. Derivatives CVAEquity exposures increased during the nine months ended September 30, 20222023, primarily due to the adoption of SA-CCR. For additional information on SA-CCR, see “Capital Resources”increases in Citi’s First Quarter of 2022 Form 10-Q.investment market share prices.
(6)Other exposures include cleared transactions, unsettled transactions, assets other than those reportable in specific exposure categories and non-material portfolios. Other exposures decreased during the three months ended September 30, 2022 primarily due to a decrease in accounts receivable.
(7)Operational risk-weighted assets increased during the three and nine months ended September 30, 20222023, mainly driven by increases across accounts receivables, prepaid expenses and other assets.
(7)Market risk-weighted assets decreased during the three and nine months ended September 30, 2023, primarily due to newexposure changes and changes in model severity update.
Supplementary Leverage Ratio
The following table presents Citi’s Supplementary Leverage ratio and related components:components as of September 30, 2023, June 30, 2023 and December 31, 2022:
| | In millions of dollars, except ratios | In millions of dollars, except ratios | September 30, 2022 | June 30, 2022 | December 31, 2021 | In millions of dollars, except ratios | September 30, 2023 | June 30, 2023 | December 31, 2022 | |
| Tier 1 Capital | Tier 1 Capital | $ | 164,830 | | $ | 165,159 | | $ | 169,568 | | Tier 1 Capital | $ | 176,878 | | $ | 175,743 | | $ | 169,145 | | |
| Total Leverage Exposure | Total Leverage Exposure | | Total Leverage Exposure | | |
On-balance sheet assets(1)(2) | On-balance sheet assets(1)(2) | $ | 2,401,767 | | $ | 2,382,324 | | $ | 2,389,237 | | On-balance sheet assets(1)(2) | $ | 2,415,293 | | $ | 2,467,128 | | $ | 2,432,823 | | |
Certain off-balance sheet exposures:(3) | | |
Certain off-balance sheet exposures(3) | | Certain off-balance sheet exposures(3) | | |
| Potential future exposure on derivative contracts | Potential future exposure on derivative contracts | 153,842 | | 178,183 | | 222,241 | | Potential future exposure on derivative contracts | 154,202 | | 144,823 | | 133,071 | | |
Effective notional of sold credit derivatives, net(4) | Effective notional of sold credit derivatives, net(4) | 32,768 | | 33,187 | | 23,788 | | Effective notional of sold credit derivatives, net(4) | 32,784 | | 31,833 | | 34,117 | | |
Counterparty credit risk for repo-style transactions(5) | Counterparty credit risk for repo-style transactions(5) | 16,997 | | 20,022 | | 25,775 | | Counterparty credit risk for repo-style transactions(5) | 21,199 | | 19,399 | | 17,169 | | |
| Other off-balance sheet exposures | Other off-balance sheet exposures | 320,364 | | 359,222 | | 334,526 | | Other off-balance sheet exposures | 340,320 | | 318,185 | | 326,553 | | |
| Total of certain off-balance sheet exposures | Total of certain off-balance sheet exposures | $ | 523,971 | | $ | 590,614 | | $ | 606,330 | | Total of certain off-balance sheet exposures | $ | 548,505 | | $ | 514,240 | | $ | 510,910 | | |
| Less: Tier 1 Capital deductions | Less: Tier 1 Capital deductions | 37,203 | | 37,649 | | 37,803 | | Less: Tier 1 Capital deductions | 36,406 | | 37,822 | | 36,960 | | |
| Total Leverage Exposure | Total Leverage Exposure | $ | 2,888,535 | | $ | 2,935,289 | | $ | 2,957,764 | | Total Leverage Exposure | $ | 2,927,392 | | $ | 2,943,546 | | $ | 2,906,773 | | |
| Supplementary Leverage ratio | Supplementary Leverage ratio | 5.71 | % | 5.63 | % | 5.73 | % | Supplementary Leverage ratio | 6.04 | % | 5.97 | % | 5.82 | % | |
(1)Represents the daily average of on-balance sheet assets for the quarter.
(2)Citi’s regulatory capital ratios and components reflect certain deferrals based on the modified regulatory capital transition provision related to the current expected credit losses (CECL)CECL standard. For additional information, see “Capital Resources—Regulatory Capital Treatment—Modified Transition of the Current Expected Credit Losses Methodology” in Citi’s 20212022 Form 10-K.
(3)Represents the average of certain off-balance sheet exposures calculated as of the last day of each month in the quarter.
(4)Under the U.S. Basel III rules, banking organizations are required to include in Total Leverage Exposure the effective notional amount of sold credit derivatives, with netting of exposures permitted if certain conditions are met.
(5)Repo-style transactions include repurchase and reverse repurchase transactions as well as securities borrowing and securities lending transactions.
As presented in the table above, Citigroup’s Supplementary Leverage ratio was 5.7%approximately 6.0% at September 30, 20222023 and December 31, 2021,June 30, 2023, compared to 5.6%5.8% at June 30,December 31, 2022. The increase from the secondfourth quarter of 2022 was primarily driven by net income and a decrease in Total Leverage Exposure, partially offset by a reductionan increase in Tier 1 Capital resulting from interest rate impacts on Citigroup’s investment portfoliodue to net income of $11.1 billion, partially offset by dividends and the return of capital to common shareholders through dividends.an increase in Total Leverage Exposure.
Capital Resources of Citigroup’s Subsidiary U.S. Depository Institutions
Citigroup’s subsidiary U.S. depository institutions are also subject to regulatory capital standards issued by their respective primary bank regulatory agencies, which are similar to the standards of the Federal Reserve Board.
The following tables present the capital components and ratios for Citibank, Citi’s primary subsidiary U.S. depository institution:institution, as of September 30, 2023, June 30, 2023 and December 31, 2022:
| | | | | | | | | | | | | | | | | | | | | | | |
| | Advanced Approaches | Standardized Approach |
| In millions of dollars, except ratios | Required Capital Ratios(1) | September 30,
2023 | June 30,
2023 | December 31,
2022 | September 30,
2023 | June 30,
2023 | December 31,
2022 |
CET1 Capital(2) | | $ | 150,635 | | $ | 150,482 | | $ | 149,593 | | $ | 150,635 | | $ | 150,482 | | $ | 149,593 | |
Tier 1 Capital(2) | | 152,763 | | 152,612 | | 151,720 | | 152,763 | | 152,612 | | 151,720 | |
Total Capital (Tier 1 Capital + Tier 2 Capital)(2)(3)(8) | | 165,977 | | 165,840 | | 165,141 | | 173,610 | | 173,517 | | 172,647 | |
Total Risk-Weighted Assets(8) | | 1,027,427 | | 1,041,217 | | 1,008,736 | | 976,833 | | 986,744 | | 986,187 | |
Credit Risk(2)(8) | | $ | 750,046 | | $ | 758,445 | | $ | 729,798 | | $ | 940,019 | | $ | 944,565 | | $ | 948,150 | |
Market Risk(8) | | 36,667 | | 42,058 | | 37,676 | | 36,814 | | 42,179 | | 38,037 | |
| Operational Risk | | 240,714 | | 240,714 | | 241,262 | | — | | — | | — | |
CET1 Capital ratio(4)(5)(8) | 7.0 | % | 14.66 | % | 14.45 | % | 14.83 | % | 15.42 | % | 15.25 | % | 15.17 | % |
Tier 1 Capital ratio(4)(5)(8) | 8.5 | | 14.87 | | 14.66 | | 15.04 | | 15.64 | | 15.47 | | 15.38 | |
Total Capital ratio(4)(5)(8) | 10.5 | | 16.15 | | 15.93 | | 16.37 | | 17.77 | | 17.58 | | 17.51 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | Advanced Approaches | Standardized Approach |
| In millions of dollars, except ratios | Required Capital Ratios(1) | September 30, 2022 | June 30, 2022 | December 31, 2021 | September 30, 2022 | June 30, 2022 | December 31, 2021 |
Common Equity Tier 1 Capital(2) | | $ | 147,938 | | $ | 148,742 | | $ | 148,548 | | $ | 147,938 | | $ | 148,742 | | $ | 148,548 | |
| Tier 1 Capital | | 150,062 | | 150,870 | | 150,679 | | 150,062 | | 150,870 | | 150,679 | |
Total Capital (Tier 1 Capital + Tier 2 Capital)(2)(3) | | 165,171 | | 166,094 | | 166,921 | | 172,916 | | 174,213 | | 175,427 | |
| Total Risk-Weighted Assets | | 1,046,884 | | 1,057,336 | | 1,017,774 | | 1,024,923 | | 1,068,525 | | 1,066,015 | |
Credit Risk(2) | | $ | 762,660 | | $ | 780,785 | | $ | 737,802 | | $ | 983,949 | | $ | 1,023,309 | | $ | 1,016,293 | |
| Market Risk | | 40,676 | | 44,755 | | 48,089 | | 40,974 | | 45,216 | | 49,722 | |
| Operational Risk | | 243,548 | | 231,796 | | 231,883 | | — | | — | | — | |
Common Equity Tier 1 Capital ratio(4)(5) | 7.0 | % | 14.13 | % | 14.07 | % | 14.60 | % | 14.43 | % | 13.92 | % | 13.93 | % |
Tier 1 Capital ratio(4)(5) | 8.5 | | 14.33 | | 14.27 | | 14.80 | | 14.64 | | 14.12 | | 14.13 | |
Total Capital ratio(4)(5) | 10.5 | | 15.78 | | 15.71 | | 16.40 | | 16.87 | | 16.30 | | 16.46 | |
| | In millions of dollars, except ratios | In millions of dollars, except ratios | Required Capital Ratios | September 30, 2022 | June 30, 2022 | December 31, 2021 | In millions of dollars, except ratios | Required
Capital Ratios | September 30, 2023 | June 30, 2023 | December 31, 2022 |
Quarterly Adjusted Average Total Assets(2)(6) | Quarterly Adjusted Average Total Assets(2)(6) | | $ | 1,694,381 | | $ | 1,680,846 | | $ | 1,716,596 | | Quarterly Adjusted Average Total Assets(2)(6) | | $ | 1,666,706 | | $ | 1,716,982 | | $ | 1,738,744 | |
Total Leverage Exposure(2)(7) | Total Leverage Exposure(2)(7) | | 2,147,923 | | 2,178,239 | | 2,236,839 | | Total Leverage Exposure(2)(7) | | 2,139,843 | | 2,162,693 | | 2,189,541 | |
Tier 1 Leverage ratio(5) | 5.0 | % | 8.86 | % | 8.98 | % | 8.78 | % | |
Leverage ratio(5) | | Leverage ratio(5) | 5.0 | % | 9.17 | % | 8.89 | % | 8.73 | % |
Supplementary Leverage ratio(5) | Supplementary Leverage ratio(5) | 6.0 | | 6.99 | | 6.93 | | 6.74 | | Supplementary Leverage ratio(5) | 6.0 | | 7.14 | | 7.06 | | 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 Common Equity Tier 1CET1 Capital).
(2)Citibank’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)CECL standard. For additional information, see “Capital Resources—Regulatory Capital Treatment—Modified Transition of the Current Expected Credit Losses Methodology” in Citi’s 20212022 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, which differs from the Standardized Approach in which the ACL is eligible for inclusion in Tier 2 Capital up to 1.25% of credit risk-weighted assets, with any excess ACL being deducted in arriving at credit risk-weighted assets.
(4)Citibank’s binding Common EquityCET1 Capital, Tier 1 Capital and Tier 1Total Capital ratios were derived under the Basel III Advanced Approaches framework as of September 30, 2022, and under the Basel III Standardized Approach as of June 30, 2022 and December 31, 2021, whereas Citibank’s binding Total Capital ratio was derived under the Basel III Advanced Approaches framework for all periods presented.
(5)Citibank must maintain required Common Equity Tier 1CET1 Capital, Tier 1 Capital, Total Capital and Tier 1 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)Tier 1 Leverage ratio denominator. Represents quarterly average total assets less amounts deducted from Tier 1 Capital.
(7)Supplementary Leverage ratio denominator.
As indicatedpresented in the table above, Citibank’s capital ratios at September 30, 20222023 were in excess of the regulatory capital requirements under the U.S. Basel III rules. In addition, Citibank was “well capitalized” as of September 30, 2023.
Citibank’s Supplementary Leverage ratio was 7.1% at September 30, 2023 and June 30, 2023, compared to 6.9% at December 31, 2022. The year-to-date increase was driven by a decrease in Total Leverage Exposure, primarily due to lower average on-balance sheet assets, and an increase in Tier 1 Capital due to net income in 2023, partially offset by dividends.
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 Common Equity Tier 1CET1 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 September 30, 2022.2023. 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 | | Common Equity Tier 1 Capital ratio | Tier 1 Capital ratio | Total Capital ratio |
| In basis points | 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 | 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 | Citigroup | | | | | | Citigroup | | | | | |
| Advanced Approaches | Advanced Approaches | 0.8 | 1.0 | 0.8 | 1.1 | 0.8 | 1.2 | Advanced Approaches | 0.8 | 1.0 | 0.8 | 1.1 | 0.8 | 1.3 |
| Standardized Approach | Standardized Approach | 0.8 | 1.0 | 0.8 | 1.2 | 0.8 | 1.4 | Standardized Approach | 0.9 | 1.2 | 0.9 | 1.3 | 0.9 | 1.6 |
| Citibank | Citibank | | | | | | Citibank | | | | | |
| Advanced Approaches | Advanced Approaches | 1.0 | 1.4 | 1.0 | 1.4 | 1.0 | 1.5 | Advanced Approaches | 1.0 | 1.4 | 1.0 | 1.4 | 1.0 | 1.6 |
| Standardized Approach | Standardized Approach | 1.0 | 1.4 | 1.0 | 1.4 | 1.0 | 1.6 | Standardized Approach | 1.0 | 1.6 | 1.0 | 1.6 | 1.0 | 1.8 |
| | | Tier 1 Leverage ratio | Supplementary Leverage ratio | | Leverage ratio | Supplementary Leverage ratio |
| In basis points | 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 | 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 | Citigroup | 0.4 | 0.3 | 0.3 | 0.2 | Citigroup | 0.4 | 0.3 | 0.3 | 0.2 |
| Citibank | Citibank | 0.6 | 0.5 | 0.5 | 0.3 | Citibank | 0.6 | 0.5 | 0.3 |
Citigroup Broker-Dealer Subsidiaries
At September 30, 2022,2023, 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 $10$16 billion, which exceeded the minimum requirement by $6$12 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 September 30, 2022,2023, 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 September 30, 2022.2023.
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.requirement:
| | | September 30, 2022 | | September 30, 2023 |
| In billions of dollars, except ratios | In billions of dollars, except ratios | External TLAC | LTD | In billions of dollars, except ratios | External TLAC | LTD |
| Total eligible amount | Total eligible amount | $ | 327 | | $ | 158 | | Total eligible amount | $ | 337 | | $ | 152 | |
% of Advanced Approaches risk-
weighted assets | % of Advanced Approaches risk-
weighted assets | 26.7 | % | 12.8 | % | % of Advanced Approaches risk-
weighted assets | 27.0 | % | 12.1 | % |
Regulatory requirement(1)(2) | Regulatory requirement(1)(2) | 22.5 | | 9.0 | | Regulatory requirement(1)(2) | 22.5 | | 9.5 | |
| Surplus amount | Surplus amount | $ | 51 | | $ | 47 | | Surplus amount | $ | 56 | | $ | 33 | |
| % of Total Leverage Exposure | % of Total Leverage Exposure | 11.3 | % | 5.5 | % | % of Total Leverage Exposure | 11.5 | % | 5.2 | % |
| Regulatory requirement | Regulatory requirement | 9.5 | | 4.5 | | Regulatory requirement | 9.5 | | 4.5 | |
| Surplus amount | Surplus amount | $ | 53 | | $ | 28 | | Surplus amount | $ | 59 | | $ | 20 | |
(1) External TLAC includes Methodmethod 1 GSIB surcharge of 2.0%.
(2) LTD includes Methodmethod 2 GSIB surcharge of 3.0%3.5%.
As of September 30, 2022,2023, Citi exceeded each of the TLAC and LTD regulatory requirements, resulting in a $28$20 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)” and “Risk Factors—Compliance Risks” in Citi’s 20212022 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 September 30, 2022:2023:
| | | | | | | | | | | | | | | | | | | | | | | |
| 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 | % | 13.44 | % | 7.0 | % | 14.53 | % | 15.28 | % |
| Tier 1 Capital ratio | 12.0 | | 13.5 | | 14.01 | | 15.24 | | 8.5 | | 14.74 | | 15.50 | |
| Total Capital ratio | 14.0 | | 15.5 | | 15.64 | | 17.78 | | 10.5 | | 16.02 | | 17.64 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Citigroup | Citibank |
| Required Capital Ratios, Advanced Approaches | Required Capital Ratios, Standardized Approach | Advanced Approaches | Standardized Approach | Required Capital Ratios(2) | Advanced Approaches | Standardized Approach |
| Common Equity Tier 1 Capital ratio | 10.0 | % | 10.5 | % | 11.56 | % | 12.05 | % | 7.0 | % | 13.94 | % | 14.24 | % |
| Tier 1 Capital ratio | 11.5 | | 12.0 | | 13.21 | | 13.78 | | 8.5 | | 14.14 | | 14.44 | |
| Total Capital ratio | 13.5 | | 14.0 | | 14.88 | | 16.25 | | 10.5 | | 15.59 | | 16.68 | |
| | | Required Capital Ratios | Citigroup | Required Capital Ratios | Citibank | | Required Capital Ratios | Citigroup | Required Capital Ratios | Citibank |
| Tier 1 Leverage ratio | 4.0 | % | 6.84 % | 5.0 | % | 8.74 % | |
| Leverage ratio | | Leverage ratio | 4.0 | % | 7.35 % | 5.0 | % | 9.09 % |
| Supplementary Leverage ratio | Supplementary Leverage ratio | 5.0 | | 5.60 | 6.0 | | 6.89 | Supplementary Leverage ratio | 5.0 | | 5.97 | 6.0 | | 7.08 |
(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 participating in the comment period. For additional information, see “Executive Summary” above.
GSIB Surcharge
Separately, the Federal Reserve Board 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 comment period and provides that it would be effective two full calendar quarters after its finalization.
Long-Term Debt Requirements
On August 29, 2023, the Federal Reserve Board issued a notice of proposed rulemaking to amend the TLAC rule to change the haircuts (i.e., the percentage reductions) that are applied to eligible long-term debt. The proposed revisions are estimated to decrease the TLAC percentage of Advanced Approaches RWA as well as the TLAC percentage of Total Leverage Exposure. This proposal, which Citi is currently reviewing, is subject to a comment period and there is no proposed transition period for its implementation. The impact of the proposed rule in its current form is not expected to be material to Citi.
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)). RoTCEReturn 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 tangible book value per shareTBVPS are non-GAAP financial measures.
| | In millions of dollars or shares, except per share amounts | In millions of dollars or shares, except per share amounts | September 30,
2022 | December 31,
2021 | In millions of dollars or shares, except per share amounts | September 30,
2023 | December 31,
2022 |
| Total Citigroup stockholders’ equity | Total Citigroup stockholders’ equity | $ | 198,560 | | $ | 201,972 | | Total Citigroup stockholders’ equity | $ | 209,503 | | $ | 201,189 | |
| Less: Preferred stock | Less: Preferred stock | 18,995 | | 18,995 | | Less: Preferred stock | 19,495 | | 18,995 | |
| Common stockholders’ equity | Common stockholders’ equity | $ | 179,565 | | $ | 182,977 | | Common stockholders’ equity | $ | 190,008 | | $ | 182,194 | |
| Less: | Less: | | Less: | |
| Goodwill | Goodwill | 19,326 | | 21,299 | | Goodwill | 19,829 | | 19,691 | |
| Identifiable intangible assets (other than MSRs) | Identifiable intangible assets (other than MSRs) | 3,838 | | 4,091 | | Identifiable intangible assets (other than MSRs) | 3,811 | | 3,763 | |
Goodwill and identifiable intangible assets (other than MSRs) related to assets held-for-sale (HFS) | Goodwill and identifiable intangible assets (other than MSRs) related to assets held-for-sale (HFS) | 794 | | 510 | | Goodwill and identifiable intangible assets (other than MSRs) related to assets held-for-sale (HFS) | 49 | | 589 | |
| Tangible common equity (TCE) | Tangible common equity (TCE) | $ | 155,607 | | $ | 157,077 | | Tangible common equity (TCE) | $ | 166,319 | | $ | 158,151 | |
| Common shares outstanding (CSO) | Common shares outstanding (CSO) | 1,936.9 | | 1,984.4 | | Common shares outstanding (CSO) | 1,913.9 | | 1,937.0 | |
| Book value per share (common stockholders’ equity/CSO) | Book value per share (common stockholders’ equity/CSO) | $ | 92.71 | | $ | 92.21 | | Book value per share (common stockholders’ equity/CSO) | $ | 99.28 | | $ | 94.06 | |
| Tangible book value per share (TCE/CSO) | Tangible book value per share (TCE/CSO) | 80.34 | | 79.16 | | Tangible book value per share (TCE/CSO) | 86.90 | | 81.65 | |
| | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | 2022 | 2021 | 2022 | 2021 |
| Net income available to common shareholders | $ | 3,202 | | $ | 4,378 | | $ | 11,538 | | $ | 17,968 | |
| Average common stockholders’ equity | 179,699 | | 183,613 | | 179,950 | | 182,422 | |
| Average TCE | 155,511 | | 157,371 | | 155,391 | | 156,047 | |
| Return on average common stockholders’ equity | 7.1 | % | 9.5 | % | 8.6 | % | 13.2 | % |
| RoTCE | 8.2 | | 11.0 | | 9.9 | | 15.4 | |
| | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | 2023 | 2022 | 2023 | 2022 |
| Net income available to common shareholders | $ | 3,213 | | $ | 3,202 | | $ | 10,169 | | $ | 11,538 | |
| Average common stockholders’ equity | 189,158 | | 179,699 | | 187,160 | | 179,950 | |
| Average TCE | 165,327 | | 155,511 | | 163,188 | | 155,391 | |
| Return on average common stockholders’ equity | 6.7 | % | 7.1 | % | 7.3 | % | 8.6 | % |
| RoTCE | 7.7 | | 8.2 | | 8.3 | | 9.9 | |
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Managing Global Risk Table of Contents
| | | | | | | | |
| MANAGING GLOBAL RISK | | |
CREDIT RISK(1) | | |
| Loans | | |
| Corporate Credit | | |
| Consumer Credit | | |
| Additional Consumer and Corporate Credit Details | | |
| Loans Outstanding | | |
| Details of Credit Loss Experience | | |
| Allowance for Credit Losses on Loans (ACLL) | | 4852 |
Non-Accrual Loans and Assets and Renegotiated Loans | | |
| LIQUIDITY RISK | | |
| High-Quality Liquid Assets (HQLA) | | |
| Liquidity Coverage Ratio (LCR) | | |
Loans | | 54 |
| Deposits | | 5457 |
| Long-Term Debt | | 5558 |
| Secured Funding Transactions and Short-Term Borrowings | | 5760 |
| Credit Ratings | | 5861 |
MARKET RISK(1) | | |
| Market Risk of Non-Trading Portfolios | | |
| Market Risk of Trading Portfolios | | |
| OTHER RISKS | | |
LIBOR Transition Risk | | |
| Country Risk | | |
| Russia | | |
| Ukraine | | |
| Argentina | | |
(1) For additional information regarding certain credit risk, market risk and other quantitative and qualitative information, refer to Citi’s Pillar 3 Basel III Advanced Approaches Disclosures, as required by the rules of the Federal Reserve Board, on Citi’s Investor Relations website.
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, strategy, value proposition,Mission and Value Proposition and the key guiding principles andLeadership 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 20212022 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 20212022 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 | 3Q23 | 2Q23 | 3Q22 |
| Personal Banking and Wealth Management | | | |
| U.S. Retail banking | $ | 43 | | $ | 40 | | $ | 36 | |
| U.S. Cards | 153 | | 149 | | 138 | |
| Global Wealth | 151 | | 150 | | 151 | |
| Total | $ | 347 | | $ | 339 | | $ | 325 | |
| Institutional Clients Group | | | |
| Services | $ | 83 | | $ | 80 | | $ | 82 | |
| Banking | 181 | | 185 | | 197 | |
| Markets | 14 | | 13 | | 12 | |
| Total | $ | 278 | | $ | 278 | | $ | 291 | |
Total Legacy Franchises(1) | $ | 37 | | $ | 37 | | $ | 39 | |
| Total Citigroup loans (AVG) | $ | 662 | | $ | 654 | | $ | 655 | |
| Total Citigroup loans (EOP) | $ | 666 | | $ | 661 | | $ | 646 | |
(1)See footnote 2 to the table in “Credit Risk—Consumer Credit—Consumer Credit Portfolio” below.
On an average basis, loans increased 1% both year-over-year and sequentially as growth in PBWM was largely offset by a decline in ICG and Legacy Franchises. PBWM average loans increased 7% year-over-year, primarily driven by loan growth in cards, mortgages and installment lending. ICG average loans decreased 4% year-over-year, reflecting actions taken to reduce RWA. Legacy Franchises average loans decreased 5%, primarily reflecting the impact of the continued wind-downs, particularly in Korea and China, partially offset by higher lending volumes in Mexico Consumer.
End-of-period loans increased 3% year-over-year, as growth in PBWM, reflecting an increase in U.S. Personal Banking, was partially offset by declines in ICG and Legacy Franchises. End-of-period loans increased 1% sequentially.
The following table details Citi’s corporate credit portfolio within ICG and the Mexico SBMM component of Legacy Franchises (excluding certain loans managed on a delinquency basis, loans carried at fair value and loans held-for-sale), and before consideration of collateral or hedges, by remaining tenor for the periods indicated:
| | | | September 30, 2022 | June 30, 2022 | December 31, 2021 | | September 30, 2023 | June 30, 2023 | December 31, 2022 |
| In billions of dollars | In billions of dollars | Due
within
1 year | Greater
than 1 year
but within
5 years | Greater
than
5 years | Total
exposure | Due
within
1 year | Greater
than 1 year
but within
5 years | Greater
than
5 years | Total
exposure | Due
within
1 year | Greater
than 1 year
but within
5 years | Greater
than
5 years | Total
exposure | In billions of dollars | Due
within
1 year | Greater
than 1 year
but within
5 years | Greater
than
5 years | Total
exposure | Due
within
1 year | Greater
than 1 year
but within
5 years | Greater
than
5 years | Total
exposure | Due
within
1 year | Greater
than 1 year
but within
5 years | Greater
than
5 years | Total
exposure |
Direct outstandings (on-balance sheet)(1) | Direct outstandings (on-balance sheet)(1) | $ | 143 | | $ | 114 | | $ | 27 | | $ | 284 | | $ | 158 | | $ | 117 | | $ | 21 | | $ | 296 | | $ | 145 | | $ | 119 | | $ | 20 | | $ | 284 | | Direct outstandings (on-balance sheet)(1) | $ | 125 | | $ | 118 | | $ | 38 | | $ | 281 | | $ | 127 | | $ | 118 | | $ | 35 | | $ | 280 | | $ | 135 | | $ | 122 | | $ | 27 | | $ | 284 | |
Unfunded lending commitments (off-balance sheet)(2) | Unfunded lending commitments (off-balance sheet)(2) | 133 | | 248 | | 10 | | 391 | | 141 | | 264 | | 9 | | 414 | | 147 | | 269 | | 13 | | 429 | | Unfunded lending commitments (off-balance sheet)(2) | 144 | | 259 | | 19 | | 422 | | 135 | | 260 | | 16 | | 411 | | 140 | | 256 | | 10 | | 406 | |
| Total exposure | Total exposure | $ | 276 | | $ | 362 | | $ | 37 | | $ | 675 | | $ | 299 | | $ | 381 | | $ | 30 | | $ | 710 | | $ | 292 | | $ | 388 | | $ | 33 | | $ | 713 | | Total exposure | $ | 269 | | $ | 377 | | $ | 57 | | $ | 703 | | $ | 262 | | $ | 378 | | $ | 51 | | $ | 691 | | $ | 275 | | $ | 378 | | $ | 37 | | $ | 690 | |
(1) Includes drawn loans, overdrafts, bankers’ acceptances and leases.
(2) Includes unused commitments to lend, letters of credit and financial guarantees.
Portfolio Mix—Geography and Counterparty
Citi’s corporate credit portfolio is diverse across geography and counterparty. The following table showspresents the percentage of this portfolio by region based on Citi’s internal management geography:
| | | September 30,
2022 | June 30, 2022 | December 31,
2021 | | September 30,
2023 | June 30, 2023 | December 31,
2022 |
| North America | North America | 56 | % | 56 | % | 56 | % | North America | 56 | % | 56 | % | 56 | % |
| EMEA | EMEA | 25 | | 25 | | 25 | | EMEA | 25 | | 25 | | 25 | |
| Asia | Asia | 12 | | 12 | | 13 | | Asia | 12 | | 12 | | 12 | |
| Latin America | Latin America | 7 | | 7 | | 6 | | Latin America | 7 | | 7 | | 7 | |
| Total | Total | 100 | % | 100 | % | 100 | % | Total | 100 | % | 100 | % | 100 | % |
The maintenance of accurate and consistent risk ratings across the corporate credit portfolio facilitates the comparison of credit exposure across all lines of business, geographic regions and products. Counterparty risk ratings reflect an estimated probability of default for a counterparty, and internal risk ratings are derived by leveraging validated statistical models scorecard models and external agency ratings (under defined circumstances),scorecards in combination with consideration of factors specific to the obligor or market, such as management experience, competitive position, regulatory environment and commodity prices. Facility risk ratings are assigned that reflect the probability of default of the obligor and factors that affect the loss given default of the facility, such as support or collateral. Internal obligor ratings that generally correspond to BBB and above are considered investment grade, while those below are considered non-investment grade.
The following table presents the corporate credit portfolio by facility risk rating as a percentage of the total corporate credit portfolio:
| | | | Total exposure | | Total exposure |
| | | September 30,
2022 | June 30,
2022 | December 31,
2021 | | September 30,
2023 | June 30,
2023 | December 31,
2022 |
| AAA/AA/A | AAA/AA/A | 50 | % | 50 | % | 48 | % | AAA/AA/A | 49 | % | 49 | % | 50 | % |
| BBB | BBB | 33 | | 33 | | 34 | | BBB | 34 | | 34 | | 34 | |
| BB/B | BB/B | 15 | | 15 | | 16 | | BB/B | 15 | | 15 | | 14 | |
| CCC or below | CCC or below | 2 | | 2 | | 2 | | CCC or below | 2 | | 2 | | 2 | |
| Total | Total | 100 | % | 100 | % | 100 | % | Total | 100 | % | 100 | % | 100 | % |
Note: Total exposure includes direct outstandings and unfunded lending commitments.
In addition to the obligor and facility risk ratings assigned to all exposures, Citi may classify exposures in the corporate credit portfolio. These classifications are consistent with Citi’s interpretation of the U.S. banking regulators’ definition of criticized exposures, which may categorize exposures as special mention, substandard, doubtful or loss.
Risk ratings and classifications are reviewed regularly and adjusted as appropriate. The credit review process incorporates quantitative and qualitative factors, including financial and non-financial disclosures or metrics, idiosyncratic events or changes to the competitive, regulatory or macroeconomic environment.
CitigroupCiti believes the corporate credit portfolio to be appropriately rated and classified as of September 30, 2022. Citigroup2023. Citi has taken action to adjust internal ratings and classifications of exposures as both the macroeconomic environment and obligor-specific factors have changed, particularly where additional stress has been seen.
As obligor risk ratings are downgraded, the probability of default increases. Downgrades of obligor risk ratings tend to result in a higher provision for credit losses. In addition, appetite per obligor is reduced consistent with the ratings, and downgrades may result in the purchase of additional credit derivatives or other riskrisk/structural mitigants to hedge the incremental credit risk, or may result in Citi’s seeking to reduce exposure to an obligor or an industry sector. Citi will continue to review exposures to ensure that the appropriate probability of default is incorporated into all risk assessments.
See Note 13 for additional information on Citi’s corporate credit portfolio.
Portfolio Mix—Industry
Citi’s corporate credit portfolio is diversified by industry. The following table details the allocation of Citi’s total corporate credit portfolio by industry:
| | | | Total exposure | | Total exposure |
| | | September 30,
2022 | June 30,
2022 | December 31,
2021 | | September 30,
2023 | June 30,
2023 | December 31,
2022 |
| Transportation and industrials | Transportation and industrials | 20 | % | 20 | % | 20 | % | Transportation and industrials | 21 | % | 21 | % | 20 | % |
| Technology, media and telecom | Technology, media and telecom | 12 | | 12 | | 12 | | Technology, media and telecom | 12 | | 12 | | 12 | |
| Consumer retail | Consumer retail | 11 | | 11 | | 11 | | Consumer retail | 12 | | 12 | | 11 | |
| Real estate | Real estate | 10 | | 10 | | 10 | | Real estate | 10 | | 10 | | 10 | |
| Commercial | | Commercial | 8 | | 8 | | 8 | |
| Residential | | Residential | 2 | | 2 | | 2 | |
Banks and finance companies(1) | | Banks and finance companies(1) | 10 | | 10 | | 10 | |
| Power, chemicals, metals and mining | Power, chemicals, metals and mining | 9 | | 9 | | 9 | | Power, chemicals, metals and mining | 9 | | 9 | | 9 | |
| Banks and finance companies | 9 | | 9 | | 8 | | |
| Energy and commodities | Energy and commodities | 7 | | 7 | | 7 | | Energy and commodities | 7 | | 7 | | 7 | |
| Asset managers and funds | 7 | | 7 | | 8 | | |
| Health | Health | 5 | | 5 | | 5 | | Health | 5 | | 6 | | 6 | |
| Insurance | Insurance | 4 | | 4 | | 4 | | Insurance | 4 | | 4 | | 4 | |
| Asset managers and funds | | Asset managers and funds | 3 | | 3 | | 5 | |
| Public sector | Public sector | 3 | | 3 | | 3 | | Public sector | 3 | | 3 | | 3 | |
| Financial markets infrastructure | Financial markets infrastructure | 2 | | 2 | | 2 | | Financial markets infrastructure | 3 | | 2 | | 2 | |
| Securities firms | — | | — | | — | | |
| | Other industries | Other industries | 1 | | 1 | | 1 | | Other industries | 1 | | 1 | | 1 | |
| Total | Total | 100 | % | 100 | % | 100 | % | Total | 100 | % | 100 | % | 100 | % |
(1) As of the periods in the table, Citi had less than 1% exposure to securities firms. See corporate credit portfolio by industry, below.
The following table details Citi’s corporate credit portfolio by industry as of September 30, 2022:2023:
| | | Non-investment grade | | Selected metrics | | Non-investment grade | | Selected metrics |
| In millions of dollars | In millions of dollars | Total credit exposure | Funded(1) | Unfunded(1) | Investment grade | Non-criticized | Criticized performing | Criticized non-performing(2) | | 30 days or more past due and accruing | Net credit losses (recoveries) | Credit derivative hedges(3) | In millions of dollars | Total credit exposure | Funded(1) | Unfunded(1) | Investment grade | Non-criticized | Criticized performing | Criticized non-performing(2) | | 30 days or more past due and accruing | Net credit losses (recoveries) | Credit derivative hedges(3) |
| Transportation and industrials | Transportation and industrials | $ | 135,469 | | $ | 52,978 | | $ | 82,491 | | $ | 105,517 | | $ | 20,566 | | $ | 8,871 | | $ | 515 | | | $ | 330 | | $ | (37) | | $ | (8,136) | | Transportation and industrials | $ | 150,025 | | $ | 58,312 | | $ | 91,713 | | $ | 119,760 | | $ | 24,845 | | $ | 5,145 | | $ | 275 | | | $ | 136 | | $ | 37 | | $ | (7,047) | |
Autos(4) | Autos(4) | 46,238 | | 19,221 | | 27,017 | | 38,257 | | 6,452 | | 1,390 | | 139 | | | 43 | | 1 | | (2,884) | | Autos(4) | 49,486 | | 22,606 | | 26,880 | | 42,945 | | 5,439 | | 1,044 | | 58 | | | 43 | | 19 | | (2,291) | |
| Transportation | Transportation | 24,417 | | 11,163 | | 13,254 | | 18,094 | | 2,771 | | 3,371 | | 181 | | | 84 | | (41) | | (1,255) | | Transportation | 27,565 | | 11,181 | | 16,384 | | 20,314 | | 5,758 | | 1,408 | | 85 | | | 7 | | 7 | | (1,185) | |
| Industrials | Industrials | 64,814 | | 22,594 | | 42,220 | | 49,166 | | 11,343 | | 4,110 | | 195 | | | 203 | | 3 | | (3,997) | | Industrials | 72,974 | | 24,525 | | 48,449 | | 56,501 | | 13,648 | | 2,693 | | 132 | | | 86 | | 11 | | (3,571) | |
| Technology, media and telecom | Technology, media and telecom | 80,793 | | 30,164 | | 50,629 | | 64,911 | | 12,015 | | 3,550 | | 317 | | | 209 | | 8 | | (5,970) | | Technology, media and telecom | 84,142 | | 28,116 | | 56,026 | | 66,735 | | 13,586 | | 3,383 | | 438 | | | 107 | | 21 | | (5,449) | |
| Consumer retail | Consumer retail | 75,757 | | 32,305 | | 43,452 | | 58,550 | | 13,718 | | 3,098 | | 391 | | | 241 | | 16 | | (4,884) | | Consumer retail | 81,615 | | 34,117 | | 47,498 | | 63,016 | | 15,030 | | 3,370 | | 199 | | | 154 | | 53 | | (5,371) | |
| Real estate | Real estate | 67,330 | | 45,582 | | 21,748 | | 58,399 | | 5,683 | | 3,246 | | 2 | | | 134 | | 1 | | (625) | | Real estate | 70,625 | | 49,107 | | 21,518 | | 62,050 | | 4,467 | | 3,287 | | 821 | | | 103 | | 2 | | (547) | |
| Commercial | | Commercial | 54,478 | | 34,950 | | 19,528 | | 45,972 | | 4,461 | | 3,287 | | 758 | | | 103 | | 2 | | (547) | |
| Residential | | Residential | 16,147 | | 14,157 | | 1,990 | | 16,078 | | 6 | | — | | 63 | | | — | | — | | — | |
| Banks and finance companies | | Banks and finance companies | 73,721 | | 45,506 | | 28,215 | | 64,801 | | 7,640 | | 1,144 | | 136 | | | 127 | | 37 | | (633) | |
| Power, chemicals, metals and mining | Power, chemicals, metals and mining | 60,285 | | 18,611 | | 41,674 | | 48,794 | | 9,997 | | 1,294 | | 200 | | | 150 | | 15 | | (4,718) | | Power, chemicals, metals and mining | 58,757 | | 18,736 | | 40,021 | | 45,983 | | 10,601 | | 2,042 | | 131 | | | 145 | | 7 | | (4,970) | |
| Power | Power | 23,024 | | 4,703 | | 18,321 | | 19,712 | | 2,863 | | 394 | | 55 | | | 52 | | — | | (2,173) | | Power | 23,430 | | 4,487 | | 18,943 | | 20,075 | | 2,726 | | 535 | | 94 | | | 16 | | 7 | | (2,301) | |
| Chemicals | Chemicals | 23,614 | | 8,033 | | 15,581 | | 19,453 | | 3,552 | | 496 | | 113 | | | 59 | | 15 | | (1,933) | | Chemicals | 21,808 | | 8,044 | | 13,764 | | 15,855 | | 4,927 | | 1,011 | | 15 | | | 50 | | 1 | | (2,042) | |
| Metals and mining | Metals and mining | 13,647 | | 5,875 | | 7,772 | | 9,629 | | 3,582 | | 404 | | 32 | | | 39 | | — | | (612) | | Metals and mining | 13,519 | | 6,205 | | 7,314 | | 10,053 | | 2,948 | | 496 | | 22 | | | 79 | | (1) | | (627) | |
| Banks and finance companies | 60,503 | | 38,537 | | 21,966 | | 51,712 | | 6,043 | | 2,581 | | 167 | | | 108 | | 30 | | (845) | | |
Energy and commodities(5) | Energy and commodities(5) | 47,467 | | 14,628 | | 32,839 | | 39,050 | | 6,700 | | 1,561 | | 156 | | | 284 | | 11 | | (3,502) | | Energy and commodities(5) | 45,098 | | 12,752 | | 32,346 | | 38,870 | | 5,607 | | 481 | | 140 | | | 3 | | (14) | | (3,079) | |
| Asset managers and funds | 44,814 | | 20,988 | | 23,826 | | 42,592 | | 2,155 | | 67 | | — | | | 156 | | — | | (866) | | |
| Health | Health | 32,546 | | 8,865 | | 23,681 | | 27,691 | | 3,894 | | 862 | | 99 | | | 103 | | 1 | | (2,629) | | Health | 34,731 | | 9,029 | | 25,702 | | 29,239 | | 4,087 | | 1,249 | | 156 | | | 24 | | 7 | | (3,021) | |
| Insurance | Insurance | 27,797 | | 3,350 | | 24,447 | | 26,918 | | 879 | | — | | — | | | 3 | | — | | (2,699) | | Insurance | 29,685 | | 3,550 | | 26,135 | | 28,608 | | 1,041 | | 36 | | — | | | 6 | | — | | (4,436) | |
| Asset managers and funds | | Asset managers and funds | 22,027 | | 5,559 | | 16,468 | | 20,389 | | 1,535 | | 64 | | 39 | | | 1 | | — | | (170) | |
| Public sector | Public sector | 23,425 | | 12,982 | | 10,443 | | 19,758 | | 1,827 | | 1,683 | | 157 | | | 22 | | 3 | | (1,370) | | Public sector | 23,530 | | 10,730 | | 12,800 | | 20,975 | | 2,089 | | 462 | | 4 | | | 40 | | 6 | | (1,281) | |
| Financial markets infrastructure | Financial markets infrastructure | 8,936 | | 57 | | 8,879 | | 8,865 | | 71 | | — | | — | | | — | | — | | (20) | | Financial markets infrastructure | 18,884 | | 123 | | 18,761 | | 18,884 | | — | | — | | — | | | — | | — | | (7) | |
| Securities firms | Securities firms | 1,590 | | 797 | | 793 | | 756 | | 657 | | 175 | | 2 | | | 8 | | — | | (3) | | Securities firms | 1,620 | | 623 | | 997 | | 951 | | 635 | | 34 | | — | | | — | | — | | (2) | |
| Other industries | 8,193 | | 4,464 | | 3,729 | | 5,566 | | 2,314 | | 281 | | 32 | | | 37 | | 12 | | (247) | | |
Other industries(6) | | Other industries(6) | 9,000 | | 5,184 | | 3,816 | | 4,203 | | 4,492 | | 270 | | 35 | | | 48 | | (1) | | (12) | |
| Total | Total | $ | 674,905 | | $ | 284,308 | | $ | 390,597 | | $ | 559,079 | | $ | 86,519 | | $ | 27,269 | | $ | 2,038 | | | $ | 1,785 | | $ | 60 | | $ | (36,514) | | Total | $ | 703,460 | | $ | 281,445 | | $ | 422,016 | | $ | 584,464 | | $ | 95,655 | | $ | 20,967 | | $ | 2,374 | | | $ | 894 | | $ | 155 | | $ | (36,025) | |
(1) Excludes $0.4 billion and $0.1 billion of funded and unfunded exposure at September 30, 2022, respectively, primarily related to the delinquency-managed loans and unearned income. Funded balance also excludes loans carried at fair value of $3.6$7.2 billion at September 30, 2022.2023.
(2) Includes non-accrual loan exposures and criticized unfunded exposures.
(3) Represents the amount of purchased credit protection in the form of derivatives to economically hedge funded and unfunded exposures. Of the $36.5$36.0 billion of purchased credit protection, $33.2$33.7 billion represents the total notional amount of purchased credit derivatives on individual reference entities. The remaining $3.3$2.3 billion represents the first loss tranche of portfolios of purchased credit derivatives with a total notional of $28.4$18.6 billion, where the protection seller absorbs the first loss on the referenced loan portfolios.
(4) Autos total credit exposure includes securitization financing facilities secured by auto loans and leases, extended mainly to the finance company subsidiaries of global auto manufacturers, bank subsidiaries and independent auto finance companies, of approximately $16.9$18.3 billion ($7.610.8 billion in funded, with 100% rated investment grade) as of September 30, 2022.2023.
(5) In addition to this exposure, Citi has energy-related exposure within the public sector (e.g., energy-related state-owned entities) and the transportation and industrials sector (e.g., off-shore drilling entities) included in the table above. As of September 30, 2022,2023, Citi’s total exposure to these energy-related entities was approximately $5.1$5.0 billion, of which approximately $2.5$2.6 billion consisted of direct outstanding funded loans.
(6) Includes $0.8 billion and $0.1 billion of funded and unfunded exposure at September 30, 2023, respectively, primarily related to commercial credit card delinquency-managed loans.
Exposure to Commercial Real Estate
As of September 30, 2023, Citi’s total credit exposure to commercial real estate (CRE) was $66 billion (unchanged from June 30, 2023), including $8 billion of exposure related to office buildings. This total CRE exposure consisted of (i) approximately $54 billion related to corporate clients (unchanged from June 30, 2023), mainly included in the real estate category in the table above, and (ii) approximately $11 billion related to Private bank clients (unchanged from June 30, 2023) within PBWM that is not in the table above as they are not considered corporate exposures.
The following table details Citi’s corporate credit portfolio by industry as of December 31, 2021:2022:
| | | Non-investment grade | | Selected metrics | | Non-investment grade | | Selected metrics |
| In millions of dollars | In millions of dollars | Total credit exposure | Funded(1) | Unfunded(1) | Investment grade | Non-criticized | Criticized performing | Criticized non-performing(2) | | 30 days or more past due and accruing | Net credit losses (recoveries) | Credit derivative hedges(3) | In millions of dollars | Total credit exposure | Funded(1) | Unfunded(1) | Investment grade | Non-criticized | Criticized performing | Criticized non-performing(2) | | 30 days or more past due and accruing | Net credit losses (recoveries) | Credit derivative hedges(3) |
| Transportation and industrials | Transportation and industrials | $ | 143,445 | | $ | 51,502 | | $ | 91,943 | | $ | 110,047 | | $ | 19,051 | | $ | 13,196 | | $ | 1,151 | | | $ | 384 | | $ | 127 | | $ | (8,791) | | Transportation and industrials | $ | 139,225 | | $ | 57,271 | | $ | 81,954 | | $ | 109,197 | | $ | 19,697 | | $ | 9,850 | | $ | 481 | | | $ | 403 | | $ | — | | $ | (8,459) | |
Autos(4) | Autos(4) | 48,210 | | 18,662 | | 29,548 | | 39,824 | | 5,365 | | 2,906 | | 115 | | | 49 | | 2 | | (3,228) | | Autos(4) | 47,482 | | 21,995 | | 25,487 | | 40,795 | | 5,171 | | 1,391 | | 125 | | | 52 | | — | | (3,084) | |
| Transportation | Transportation | 26,897 | | 12,085 | | 14,812 | | 19,233 | | 2,344 | | 4,447 | | 873 | | | 105 | | 104 | | (1,334) | | Transportation | 24,843 | | 10,374 | | 14,469 | | 18,078 | | 3,156 | | 3,444 | | 165 | | | 57 | | (30) | | (1,270) | |
| Industrials | Industrials | 68,338 | | 20,755 | | 47,583 | | 50,990 | | 11,342 | | 5,843 | | 163 | | | 230 | | 21 | | (4,229) | | Industrials | 66,900 | | 24,902 | | 41,998 | | 50,324 | | 11,370 | | 5,015 | | 191 | | | 294 | | 30 | | (4,105) | |
| Technology, media and telecom | Technology, media and telecom | 84,333 | | 28,542 | | 55,791 | | 64,676 | | 15,873 | | 3,587 | | 197 | | | 156 | | 11 | | (6,875) | | Technology, media and telecom | 81,211 | | 28,931 | | 52,280 | | 65,386 | | 12,308 | | 3,308 | | 209 | | | 169 | | 11 | | (6,050) | |
| Consumer retail | Consumer retail | 78,994 | | 32,894 | | 46,100 | | 60,686 | | 13,590 | | 4,311 | | 407 | | | 224 | | 100 | | (5,115) | | Consumer retail | 78,255 | | 32,687 | | 45,568 | | 60,215 | | 14,830 | | 2,910 | | 300 | | | 195 | | 28 | | (5,395) | |
| Real estate | Real estate | 69,808 | | 46,220 | | 23,588 | | 58,089 | | 6,761 | | 4,923 | | 35 | | | 116 | | 50 | | (798) | | Real estate | 70,676 | | 48,539 | | 22,137 | | 63,023 | | 4,722 | | 2,881 | | 50 | | | 138 | | 2 | | (739) | |
| Commercial | | Commercial | 54,139 | | 34,112 | | 20,027 | | 46,670 | | 4,716 | | 2,703 | | 50 | | | 96 | | 2 | | (739) | |
| Residential | | Residential | 16,537 | | 14,427 | | 2,110 | | 16,353 | | 6 | | 178 | | — | | | 42 | | — | | — | |
| Banks and finance companies | | Banks and finance companies | 65,623 | | 42,276 | | 23,347 | | 57,368 | | 5,718 | | 2,387 | | 150 | | | 266 | | 65 | | (1,113) | |
Power, chemicals, metals
and mining | Power, chemicals, metals
and mining | 65,641 | | 20,224 | | 45,417 | | 53,575 | | 10,708 | | 1,241 | | 117 | | | 292 | | 22 | | (5,808) | | Power, chemicals, metals and mining | 59,404 | | 18,326 | | 41,078 | | 47,395 | | 10,466 | | 1,437 | | 106 | | | 226 | | 34 | | (5,063) | |
| Power | Power | 26,199 | | 5,610 | | 20,589 | | 22,860 | | 2,832 | | 420 | | 87 | | | 100 | | 17 | | (3,032) | | Power | 22,718 | | 4,827 | | 17,891 | | 18,822 | | 3,325 | | 512 | | 59 | | | 129 | | (3) | | (2,306) | |
| Chemicals | Chemicals | 25,550 | | 8,525 | | 17,025 | | 20,788 | | 4,224 | | 528 | | 10 | | | 88 | | 6 | | (2,141) | | Chemicals | 23,147 | | 7,765 | | 15,382 | | 19,033 | | 3,534 | | 564 | | 16 | | | 55 | | 30 | | (2,098) | |
| Metals and mining | Metals and mining | 13,892 | | 6,089 | | 7,803 | | 9,927 | | 3,652 | | 293 | | 20 | | | 104 | | (1) | | (635) | | Metals and mining | 13,539 | | 5,734 | | 7,805 | | 9,540 | | 3,607 | | 361 | | 31 | | | 42 | | 7 | | (659) | |
| Banks and finance companies | 58,252 | | 36,804 | | 21,448 | | 49,465 | | 4,892 | | 3,890 | | 5 | | | 150 | | (5) | | (680) | | |
Energy and commodities(5) | Energy and commodities(5) | 48,973 | | 13,485 | | 35,488 | | 38,972 | | 7,517 | | 2,220 | | 264 | | | 224 | | 78 | | (3,679) | | Energy and commodities(5) | 46,309 | | 13,069 | | 33,240 | | 38,918 | | 6,076 | | 1,200 | | 115 | | | 180 | | 11 | | (3,852) | |
| Asset managers and funds | 55,517 | | 26,879 | | 28,638 | | 54,119 | | 1,019 | | 377 | | 2 | | | 211 | | — | | (869) | | |
| Health | Health | 33,393 | | 8,826 | | 24,567 | | 27,600 | | 4,702 | | 942 | | 149 | | | 95 | | — | | (2,465) | | Health | 41,836 | | 8,771 | | 33,065 | | 36,954 | | 3,737 | | 978 | | 167 | | | 84 | | 7 | | (2,855) | |
| Insurance | Insurance | 28,495 | | 3,162 | | 25,333 | | 27,447 | | 987 | | 61 | | — | | | 2 | | 1 | | (2,711) | | Insurance | 29,932 | | 4,417 | | 25,515 | | 29,090 | | 801 | | 41 | | — | | | 44 | | — | | (3,884) | |
| Asset managers and funds | | Asset managers and funds | 35,983 | | 13,162 | | 22,821 | | 34,431 | | 1,492 | | 60 | | — | | | 95 | | — | | (759) | |
| Public sector | Public sector | 23,842 | | 12,464 | | 11,378 | | 21,035 | | 1,527 | | 1,275 | | 5 | | | 37 | | (3) | | (1,282) | | Public sector | 23,705 | | 11,736 | | 11,969 | | 20,663 | | 2,084 | | 956 | | 2 | | | 77 | | 4 | | (1,633) | |
| Financial markets infrastructure | Financial markets infrastructure | 14,341 | | 109 | | 14,232 | | 14,323 | | 18 | | — | | — | | | — | | — | | (22) | | Financial markets infrastructure | 8,742 | | 60 | | 8,682 | | 8,672 | | 70 | | — | | — | | | — | | — | | (18) | |
| Securities firms | Securities firms | 1,472 | | 613 | | 859 | | 605 | | 816 | | 51 | | — | | | 4 | | — | | (5) | | Securities firms | 1,462 | | 569 | | 893 | | 625 | | 678 | | 157 | | 2 | | | 2 | | — | | (2) | |
| Other industries | 6,591 | | 2,803 | | 3,788 | | 4,151 | | 1,890 | | 489 | | 61 | | | — | | 5 | | (169) | | |
Other industries(6) | | Other industries(6) | 7,374 | | 4,217 | | 3,157 | | 4,842 | | 2,245 | | 238 | | 49 | | | 19 | | 16 | | (8) | |
| Total | Total | $ | 713,097 | | $ | 284,527 | | $ | 428,570 | | $ | 584,790 | | $ | 89,351 | | $ | 36,563 | | $ | 2,393 | | | $ | 1,895 | | $ | 386 | | $ | (39,269) | | Total | $ | 689,737 | | $ | 284,031 | | $ | 405,706 | | $ | 576,779 | | $ | 84,924 | | $ | 26,403 | | $ | 1,631 | | | $ | 1,898 | | $ | 178 | | $ | (39,830) | |
(1) Excludes $0.6 billion and $0.1 billion of funded and unfunded exposure at December 31, 2021, respectively, primarily related to the delinquency-managed loans and unearned income. Funded balance also excludes loans carried at fair value of $6.1$5.1 billion at December 31, 2021.2022.
(2) Includes non-accrual loan exposures and criticized unfunded exposures.
(3) Represents the amount of purchased credit protection in the form of derivatives to economically hedge funded and unfunded exposures. Of the $39.3$39.8 billion of purchased credit protection, $36.0$36.6 billion represents the total notional amount of purchased credit derivatives on individual reference entities. The remaining $3.3$3.2 billion represents the first loss tranche of portfolios of purchased credit derivatives with a total notional of $28.4$27.6 billion, where the protection seller absorbs the first loss on the referenced loan portfolios.
(4) Autos total credit exposure includes securitization financing facilities secured by auto loans and leases, extended mainly to the finance company subsidiaries of global auto manufacturers, bank subsidiaries and independent auto finance companies, of approximately $17.9$17.4 billion ($6.510.3 billion in funded, with more than 99% rated investment grade) as of December 31, 2021.2022.
(5) In addition to this exposure, Citi has energy-related exposure within the public sector (e.g., energy-related state-owned entities) and the transportation and industrials sector (e.g., off-shore drilling entities) included in the table above. As of December 31, 2021,2022, Citi’s total exposure to these energy-related entities was approximately $5.1$4.7 billion, of which approximately $2.6$2.4 billion consisted of direct outstanding funded loans.
(6) Includes $0.6 billion and $0.1 billion of funded and unfunded exposure at December 31, 2022, respectively, primarily related to commercial credit card delinquency-managed loans.
Credit Risk Mitigation
As part of its overall risk management activities, Citigroup uses credit derivatives, both partial- and full-term, and other risk mitigants to economically hedge portions of the credit risk in its corporate credit portfolio, in addition to outright asset sales. Citi may enter into partial-term hedges as well as full-term hedges. In advance of the expiration of partial-term economic hedges, Citi will determine, among other factors, the economic feasibility of hedging the remaining life of the instrument. The results of the mark-to-market and any realized gains or losses on credit derivatives are reflected primarily in Principal transactions in the Consolidated Statement of Income.
At September 30, 2022,2023, June 30, 20222023 and December 31, 2021,2022, ICG had economic hedges on the corporate credit portfolio of $36.5$36.0 billion, $36.8$38.5 billion and $39.3$39.8 billion, respectively. Citigroup’sCiti’s expected credit loss model used in the calculation of its ACL does not include the favorable impact of credit derivatives and other mitigants that are marked-to-market. In addition, the reported amounts of direct outstandings and unfunded lending commitments in the tables above do not reflect the impact of these hedging transactions. The credit protection was economically hedging underlying ICG corporate credit portfolio exposures with the following risk rating distribution:
Rating of Hedged Exposure
| | | | | | | | | | | |
| September 30,
2022 | June 30,
2022 | December 31,
2021 |
| AAA/AA/A | 38 | % | 37 | % | 35 | % |
| BBB | 45 | | 44 | | 49 | |
| BB/B | 13 | | 14 | | 13 | |
| CCC or below | 4 | | 5 | | 3 | |
| Total | 100 | % | 100 | % | 100 | % |
| | | | | | | | | | | |
| September 30,
2023 | June 30,
2023 | December 31,
2022 |
| AAA/AA/A | 45 | % | 42 | % | 39 | % |
| BBB | 43 | | 43 | | 45 | |
| BB/B | 10 | | 13 | | 12 | |
| CCC or below | 2 | | 2 | | 4 | |
| Total | 100 | % | 100 | % | 100 | % |
Consumer Credit Portfolio
The following table showspresents Citi’s quarterly end-of-period consumer loans(1):
| | In billions of dollars | In billions of dollars | 3Q21(2) | 4Q21(2) | 1Q22(2) | 2Q22(2) | 3Q22(2) | | In billions of dollars | 3Q22(2) | 4Q22(2) | 1Q23(2) | 2Q23(2) | 3Q23(2) |
| Personal Banking and Wealth Management | Personal Banking and Wealth Management | | | Personal Banking and Wealth Management | |
| U.S. Personal Banking | U.S. Personal Banking | | | U.S. Personal Banking | |
| Cards | Cards | | | Cards | |
| Branded cards | Branded cards | $ | 82.8 | | $ | 87.9 | | $ | 85.9 | | $ | 91.6 | | $ | 93.7 | | | Branded cards | $ | 93.7 | | $ | 100.2 | | $ | 97.1 | | $ | 103.0 | | $ | 105.2 | |
| Retail services | Retail services | 42.7 | | 46.0 | | 44.1 | | 45.8 | | 46.7 | | | Retail services | 46.7 | | 50.5 | | 48.4 | | 50.0 | | 50.5 | |
| Retail banking | Retail banking | | | Retail banking | |
Mortgages(5) | Mortgages(5) | 30.5 | | 30.2 | | 30.5 | | 32.3 | | 32.3 | | | Mortgages(5) | 32.3 | | 33.4 | | 35.3 | | 37.4 | | 38.8 | |
| Personal, small business and other | Personal, small business and other | 2.9 | | 2.8 | | 2.8 | | 3.1 | | 3.5 | | | Personal, small business and other | 3.5 | | 3.7 | | 3.9 | | 4.1 | | 4.3 | |
Global Wealth(3)(4) | Global Wealth(3)(4) | | | Global Wealth(3)(4) | |
| Cards | Cards | 3.7 | | 4.0 | | 3.8 | | 4.0 | | 4.0 | | | Cards | 4.0 | | 4.6 | | 4.4 | | 4.5 | | 4.6 | |
Mortgages(5) | Mortgages(5) | 73.9 | | 74.6 | | 75.4 | | 77.8 | | 82.0 | | | Mortgages(5) | 82.0 | | 84.0 | | 85.2 | | 87.0 | | 88.8 | |
Personal, small business and other(6) | Personal, small business and other(6) | 72.7 | | 72.7 | | 71.0 | | 67.0 | | 65.1 | | | Personal, small business and other(6) | 65.1 | | 60.6 | | 60.3 | | 59.0 | | 57.2 | |
| Total | Total | $ | 309.2 | | $ | 318.2 | | $ | 313.5 | | $ | 321.6 | | $ | 327.3 | | | Total | $ | 327.3 | | $ | 337.0 | | $ | 334.6 | | $ | 345.0 | | $ | 349.4 | |
| Legacy Franchises | Legacy Franchises | | | Legacy Franchises | |
Asia Consumer(7) | Asia Consumer(7) | $ | 42.9 | | $ | 41.1 | | $ | 19.5 | | $ | 17.3 | | $ | 13.4 | | | Asia Consumer(7) | $ | 13.4 | | $ | 13.3 | | $ | 10.0 | | $ | 9.1 | | $ | 8.0 | |
| Mexico Consumer (excludes Mexico SBMM) | Mexico Consumer (excludes Mexico SBMM) | 13.0 | | 13.3 | | 13.6 | | 13.5 | | 13.7 | | | Mexico Consumer (excludes Mexico SBMM) | 13.7 | | 14.8 | | 16.3 | | 17.8 | | 17.8 | |
Legacy Holdings Assets(8) | Legacy Holdings Assets(8) | 4.2 | | 3.9 | | 3.7 | | 3.2 | | 3.2 | | | Legacy Holdings Assets(8) | 3.2 | | 3.0 | | 2.8 | | 2.7 | | 2.5 | |
| Total | Total | $ | 60.1 | | $ | 58.3 | | $ | 36.8 | | $ | 34.0 | | $ | 30.3 | | | Total | $ | 30.3 | | $ | 31.1 | | $ | 29.1 | | $ | 29.6 | | $ | 28.3 | |
| Total consumer loans | Total consumer loans | $ | 369.3 | | $ | 376.5 | | $ | 350.3 | | $ | 355.6 | | $ | 357.6 | | | Total consumer loans | $ | 357.6 | | $ | 368.1 | | $ | 363.7 | | $ | 374.6 | | $ | 377.7 | |
(1)End-of-period loans include interest and fees on credit cards.
(2)Legacy Franchises—3Q22 Asia Consumer loan balances, reported within Legacy Franchises, exclude approximately $17 billion ofany loans ($12 billion of retail banking loans and $5 billion of credit card loan balances) reclassified to held-for-sale (HFS) (as of the date Citi enters into a sale agreement for the respective Asia Consumer banking business. These reclassified HFS loans are instead reported in Other assets on the Consolidated Balance Sheet) as a result of Citi’s signed agreements to sell its consumer banking businesses in seven countries (see Legacy Franchises above and Note 2 for additional information). Indonesia, Malaysia, Thailand, Vietnam, Taiwan, India and Bahrain consumer banking businesses were reclassified to HFS starting 1Q22. In addition, the Australia consumer banking business was reclassified to HFS from 3Q21Sheet until the closing of its sale on June 1, 2022; and the Philippines consumer banking business was reclassified to HFS from 4Q21 until the closing of its sale on August 1, 2022. Accordingly, loans from these sold businesses are excluded from theclosing. The remaining Asia Consumer loan balances as ofportfolios—China, Korea, Russia and Poland—are held-for-investment and included in end-of-period consumer loans for all periods presented. All HFS portfolios were reclassified prior to the end of such periods.1Q22 except for a $1.8 billion portfolio, which was moved to HFS in 1Q23 and subsequently sold in 2Q23.
(3)Consists of $99.3$101.1 billion, $94.6$99.5 billion, $94.1$98.9 billion, $92.7$98.2 billion and $92.0$99.3 billion of loans in North America as of September 30, 2022,2023, June 30, 2022,2023, March 31, 2022,2023, December 31, 20212022 and September 30, 2021,2022, respectively. For additional information on the credit quality of the Global Wealth portfolio, see Note 13.
(4)Consists of $51.8$49.5 billion, $54.2$51.0 billion, $56.1$51.0 billion, $58.6$51.0 billion and $58.3$51.8 billion of loans outside North America as of September 30, 2022,2023, June 30, 2022,2023, March 31, 2022,2023, December 31, 20212022 and September 30, 2021,2022, respectively.
(5)See Note 13 for details on loan-to-value ratios for the portfolios and FICO scores for the U.S. portfolio.
(6)At September 30, 2022,2023, includes approximately $53$47 billion of classifiably managed loans. Over 90% of these loans are fully collateralized (consisting primarily of marketable investment securities, commercial real estate and limited partner capital commitments in private equity) and have experienced very low historical NCLs.net credit losses (NCLs). As discussed below, approximately 95% of the classifiably managed portion of these loans are investment grade. See “Consumer Loan Delinquencies Amounts and Ratios” below for details on the delinquency-managed portfolio.
(7)Asia Consumer also includes loans and leases in certain EMEA countries for all periods presented.
(8)Primarily consists of certain North America consumer mortgages.
For information on changes to Citi’s consumer loans, see “Liquidity“Credit Risk—Loans” below.above.
Consumer Credit Trends
Personal Banking and Wealth Management (PBWM)
| | |
| Personal Banking and Wealth Management |
As indicated above, PBWM consists of U.S. Personal Banking and Global Wealth Management (Global Wealth). U.S. Personal Banking provides cardscard products through Branded cards and Retail services, and also provides mortgages and home equity, small business and personal consumer loans through Citi’s Retail banking network. The Retail bank is concentrated in six major U.S. metropolitan areas in the U.S.areas. Global Wealth provides investment services, cards, mortgages and personal, small business and other consumer loans through the Private bank, Citigold and Wealth at Work.Work and Citigold.
As of September 30, 2022, approximately 40%2023, 45% of PBWM consumer loans consisted of BrandedU.S. cards and Retail services card loans, which generally drives the overall credit performance of PBWM,asloans. U.S. Cardscards net credit losses representrepresented approximately 90%94% of total PBWM losses.
As shown in the chart above, the third quarter of 20222023 net credit loss rate in PBWMwas unchanged increased quarter-over-quarter and increased year-over-year, largely driven by ana continued increase in net flow rates (due to certain loans migrating into later-stage delinquency buckets), primarily reflecting the ongoing normalization from historically low levels in U.S. Cards.Branded cards and Retail services, including macroeconomic pressures related to the higher inflationary and interest rate environment.
PBWM’s 90+ days past due delinquency rate increased quarter-over-quarter and year-over-year, alsolargely driven by ana continued increase in net flow rates (due to certain loans migrating into later-stage delinquency buckets), primarily reflecting the ongoing normalization in U.S. Cards.Branded cards and Retail services, including the macroeconomic pressures related to the higher inflationary and interest rate environment.
U.S. Personal Banking’s Branded cards portfolio includes proprietary and co-branded cards.
As shown in the chart above, the third quarter of 20222023 net credit loss rate in Branded cards was unchanged quarter-over-quarter and decreased year-over-year, primarily reflecting the continued impact of high payment rates, driven by lasting effects of government stimulus, unemployment benefits and consumer relief programs.
The 90+ days past due delinquency rate in Branded cards increased quarter-over-quarter and year-over year,year-over-year, largely driven by a modestcontinued increase in net flow rates (due to certain loans migrating into later-stage delinquency buckets), primarily reflecting ongoing normalization, including macroeconomic pressures related to the ongoing normalization.higher inflationary and interest rate environment.
U.S. Personal Banking’s Retail services partners directly with more than 20 retailers and dealers to offer private label and co-branded cards. Retail services’ target market focuses on select industry segments such as home improvement, specialty retail, consumer electronics and fuel. Retail services continually evaluates opportunities to add partners within target industries that have strong loyalty, lending or payment programs and growth potential.
As shown in the chart above, the third quarter of 20222023 net credit loss rate and 90+ days past due delinquency rate in Retail services increased quarter-over-quarter and year-over-year, largely driven by ana continued increase in net flow rates (due to certain loans migrating into later-stage delinquency buckets), primarily reflecting the ongoing normalization, from historically low levels.including macroeconomic pressures related to the higher inflationary and interest rate environment.
The 90+ days past due delinquency rate increased quarter-over-quarter and year-over-year, also driven by an increase in net flow rates, primarily reflecting the ongoing normalization.
For additional information on cost of credit, loan delinquency and other information for Citi’s cards portfolios, see each respective business’s results of operations above and Note 13.
U.S. Personal Banking’s Retail banking portfolio consists primarily of consumer mortgages (including home equity) and other unsecured lending products, such as small business loans and personal loans. The portfolio is generally delinquency managed, where Citi evaluates credit risk based on FICO scores, delinquencies and the value of underlying collateral. The consumer mortgages in this portfolio have historically been extended to high credit quality customers, generally with loan-to-value ratios that are less than or equal to 80% on first and second mortgages. For additional information, see “Loan-to-Value“Loan-to-Value (LTV) Ratios” in Note 13.
As shown in the chart above, the net credit loss rate in Retail banking for the third quarter of 2022 decreased2023 was unchanged quarter-over-quarter, due to industry-wide episodic overdraft losses in the first half of the year, butand increased year-over-year, primarily driven by the lingering impactgrowth and seasoning of the episodic losses.personal loans portfolio.
The 90+ days past due delinquency rate decreasedwas broadly stable quarter-over-quarter, and decreased year-over-year, primarily driven by lower delinquencies in U.S. mortgages, which reflected the lasting effects of government stimulus, unemployment benefits and consumer relief programs.mortgages.
As discussed above, the Global Wealth credit portfolioportfolios primarily consistsconsist of consumer mortgages, cards and other lending products extended to customer segments that range from the affluent to ultra-high-net-worth through the Private bank, Citigold and Wealth at Work.Work and Citigold. These customer segments represent a target market that is characterized by historically low default rates and delinquencies.
As of September 30, 2022,2023, approximately $53$47 billion, or 35%31%, of the portfolio was classifiably managed and primarily consisted of margin lending, commercial real estate, subscription credit finance and other lending programs. These classifiably managed loans are primarily evaluated for credit
risk based on their internal risk rating, of which 95% is rated investment grade. While the delinquency rate in the chart above is calculated only for the delinquency-managed
portfolio, the net credit loss rate is calculated using net credit losses for both the delinquency and classifiably managed portfolios. For more information on Citi’s total commercial real estate exposure, see “Exposure to Commercial Real Estate” within the Corporate Credit section.
As shown in the chart above, the net credit loss rate and 90+ days past due delinquency raterates in Global Wealth for the third quarter of 20222023 were broadly stable quarter-over-quarter and year-over-year, reflectingyear-over-year. The low levels of net credit losses and the 90+ days past due delinquency rate continued to reflect the strong credit profiles of the Global Wealth portfolios.
Legacy Franchises
Legacy Franchises provides traditional retail banking and branded card products to retail and small business customers in Asia Consumer and Mexico Consumer.
(1)Asia Consumer includes Legacy Franchises activities in certain EMEA countries for all periods presented.
As of September 30, 2022, Asia Consumer operated in the remaining 11 countries in Asia and EMEA (Australia and the Philippines were included until sold on June 1, 2022 and August 1, 2022, respectively) and provides credit cards, consumer mortgages and small business and personal loans. Asia Consumer also includes loans and leases in certain EMEA countries for all periods presented. As discussed above, as of the third quarter of 2023, Asia Consumer includes only the loan balances of the remaining consumer banking portfolios held-for-investment (China, Korea, Russia and Poland).
As shown in the chart above, the net credit loss rate in Asia Consumer for the third quarter of 20222023 decreased quarter-over-quarter, driven by higher recoveries, and increased quarter-over-quarter,year-over-year, primarily driven by lower average loans in Korea (decline of $2.6 billion) due to the continued wind-downongoing wind-downs of the business. The net credit loss rate decreased year-over-year, primarily driven by the impact of the charge-off of peak delinquent loans in early 2021, which resulted in lower delinquencies, leading to lower net credit losses in the current quarter. The year-over-year decrease was also driven byremaining consumer businesses, particularly Korea, and the reclassification of loansthe portfolio to held-for-sale duringHFS in the thirdfirst quarter of 2021 or thereafter (including approximately $12 billion of retail banking loans and $5 billion of credit card loan balances for2023 (subsequently sold in the thirdsecond quarter of 2022), as a result of Citi’s signing of sale agreements for the Philippines, Bahrain, India, Indonesia, Malaysia, Taiwan, Thailand and Vietnam consumer banking businesses.2023).
The 90+ days past due delinquency rate was broadly stable quarter-over-quarter and increased quarter-over-quarter, primarilyyear-over-year. The year-over-year increase was mainly driven by lower end-of-period loans in Korea (decline of $3.3 billion) due to the continued wind-down of the business, and decreased year-over-year, mainly driven by the impact of the Asia held-for-sale reclassification and the charge-off of peak delinquencies.
The performance of Asia Consumer’s portfolios continues to reflect the strong credit profiles in the region’s target customer segments. Regulatory changes in many markets inongoing wind-downs.
Asia over the past few years have also resulted in improved credit quality.
Mexico Consumer operates in Mexico through Citibanamex and provides credit cards, consumer mortgages and small business and personal loans. Mexico Consumer serves a more mass-market segment in Mexico and focuses on developing multiproduct relationships with customers.
As shown in the chart above, the third quarter of 2022 net credit loss rate in Mexico Consumer for the third quarter of 2023 increased quarter-over-quarter largely driven by higher episodic mortgage recoveries in the second quarter of 2022, and decreased year-over-year, primarily driven by the impactongoing normalization of loss rates after peak losses experienced during the charge-off of peak delinquencies in early 2021, which resulted in lower delinquencies, leading to lower net credit losses in the current quarter.pandemic.
The 90+ days past due delinquency rate decreased quarter-over-quarter, and year-over-year, primarily driven by the impactsale of delinquent loans of a portfolio segment, and increased year-over-year, driven by the charge-offongoing normalization of delinquency rates after peak delinquencies and higher payment rates.experienced during the pandemic.
For additional information on cost of credit, loan delinquency and other information for Citi’s consumer loan portfolios, see PBWM and Legacy Franchiseseach respective business’s results of operations above and Note 13.
U.S. Cards FICO Distribution
The following tables showpresent the current FICO score distributions for Citi’s Branded cards and Retail services portfolios based on end-of-period receivables. FICO scores are updated monthly for substantially all of the portfolio and on a quarterly basis for the remaining portfolio.
Branded Cards
| FICO distribution(1) | FICO distribution(1) | September 30, 2022 | June 30, 2022 | September 30, 2021 | FICO distribution(1) | September 30, 2023 | June 30, 2023 | September 30, 2022 |
| > 760 | > 760 | 48 | % | 49 | % | 48 | % | > 760 | 46 | % | 47 | % | 48 | % |
| 680–760 | 680–760 | 38 | | 38 | | 39 | | 680–760 | 39 | | 38 | | 38 | |
| < 680 | < 680 | 14 | | 13 | | 13 | | < 680 | 15 | | 15 | | 14 | |
| Total | Total | 100 | % | 100 | % | 100 | % | Total | 100 | % | 100 | % | 100 | % |
Retail Services
| FICO distribution(1) | FICO distribution(1) | September 30, 2022 | June 30, 2022 | September 30, 2021 | FICO distribution(1) | September 30, 2023 | June 30, 2023 | September 30, 2022 |
| > 760 | > 760 | 27 | % | 28 | % | 27 | % | > 760 | 26 | % | 27 | % | 27 | % |
| 680–760 | 680–760 | 43 | | 43 | | 45 | | 680–760 | 42 | | 42 | | 43 | |
| < 680 | < 680 | 30 | | 29 | | 28 | | < 680 | 32 | | 31 | | 30 | |
| Total | Total | 100 | % | 100 | % | 100 | % | Total | 100 | % | 100 | % | 100 | % |
(1) The FICO bands in the tables are consistent with general industry peer presentations.
The FICO distribution of both cardscard portfolios remained largely unchangeddeclined slightly from the prior quarter and the prior year.year, reflecting the ongoing normalization in net credit loss and delinquency rates. The FICO distribution continuescontinued to reflect strong underlying credit quality and a benefitbenefits from the continued impacts of prior government stimulus, unemployment benefits and customer relief programs, as well as lower credit utilization primarily by customers with lower FICO scores.programs. See Note 13 for additional information on FICO scores.
Additional Consumer Credit Details
Consumer Loan Delinquencies Amounts and Ratios
| | | | EOP loans(1) | 90+ days past due(2) | 30–89 days past due(2) | | EOP loans(1) | 90+ days past due(2) | 30–89 days past due(2) |
In millions of dollars,
except EOP loan amounts in billions | In millions of dollars,
except EOP loan amounts in billions | September 30,
2022 | September 30,
2022 | June 30,
2022 | September 30,
2021 | September 30,
2022 | June 30,
2022 | September 30,
2021 | In millions of dollars,
except EOP loan amounts in billions | September 30,
2023 | September 30,
2023 | June 30,
2023 | September 30,
2022 | September 30,
2023 | June 30,
2023 | September 30,
2022 |
Personal Banking and Wealth Management(3)(4)(5) | Personal Banking and Wealth Management(3)(4)(5) | | | | | | Personal Banking and Wealth Management(3)(4)(5) | | | | | |
| Total | Total | $ | 327.3 | | $ | 1,557 | | $ | 1,383 | | $ | 1,205 | | $ | 1,778 | | $ | 1,435 | | $ | 1,355 | | Total | $ | 349.4 | | $ | 2,399 | | $ | 2,041 | | $ | 1,557 | | $ | 2,585 | | $ | 2,213 | | $ | 1,778 | |
| Ratio | Ratio | | 0.57 | % | 0.52 | % | 0.49 | % | 0.65 | % | 0.54 | % | 0.55 | % | Ratio | | 0.79 | % | 0.69 | % | 0.57 | % | 0.86 | % | 0.75 | % | 0.65 | % |
| U.S. Personal Banking | U.S. Personal Banking | | | | | | U.S. Personal Banking | | | | | |
| Total | Total | $ | 176.2 | | $ | 1,286 | | $ | 1,128 | | $ | 974 | | $ | 1,474 | | $ | 1,201 | | $ | 1,063 | | Total | $ | 198.8 | | $ | 2,207 | | $ | 1,882 | | $ | 1,286 | | $ | 2,327 | | $ | 1,974 | | $ | 1,474 | |
| Ratio | Ratio | | 0.73 | % | 0.66 | % | 0.62 | % | 0.84 | % | 0.70 | % | 0.68 | % | Ratio | | 1.11 | % | 0.97 | % | 0.73 | % | 1.17 | % | 1.02 | % | 0.84 | % |
Cards(4) | Cards(4) | | | | | | Cards(4) | | | | | |
| Total | Total | 140.4 | | 1,105 | | 949 | | 783 | | 1,269 | | 1,009 | | 846 | | Total | 155.7 | | 2,045 | | 1,723 | | 1,105 | | 2,093 | | 1,741 | | 1,269 | |
| Ratio | Ratio | | 0.79 | % | 0.69 | % | 0.62 | % | 0.90 | % | 0.73 | % | 0.67 | % | Ratio | | 1.31 | % | 1.13 | % | 0.79 | % | 1.34 | % | 1.14 | % | 0.90 | % |
| Branded cards | Branded cards | 93.7 | | 474 | | 420 | | 362 | | 554 | | 428 | | 375 | | Branded cards | 105.2 | | 972 | | 837 | | 474 | | 1,019 | | 834 | | 554 | |
| Ratio | Ratio | | 0.51 | % | 0.46 | % | 0.44 | % | 0.59 | % | 0.47 | % | 0.45 | % | Ratio | | 0.92 | % | 0.81 | % | 0.51 | % | 0.97 | % | 0.81 | % | 0.59 | % |
| Retail services | Retail services | 46.7 | | 631 | | 529 | | 421 | | 715 | | 581 | | 471 | | Retail services | 50.5 | | 1,073 | | 886 | | 631 | | 1,074 | | 907 | | 715 | |
| Ratio | Ratio | | 1.35 | % | 1.16 | % | 0.99 | % | 1.53 | % | 1.27 | % | 1.10 | % | Ratio | | 2.12 | % | 1.77 | % | 1.35 | % | 2.13 | % | 1.81 | % | 1.53 | % |
Retail banking(3) | Retail banking(3) | 35.8 | | 181 | | 179 | | 191 | | 205 | | 192 | | 217 | | Retail banking(3) | 43.1 | | 162 | | 159 | | 181 | | 234 | | 233 | | 205 | |
| Ratio | Ratio | | 0.51 | % | 0.52 | % | 0.60 | % | 0.58 | % | 0.55 | % | 0.68 | % | Ratio | | 0.38 | % | 0.39 | % | 0.51 | % | 0.55 | % | 0.57 | % | 0.58 | % |
Global Wealth delinquency-managed loans(5) | Global Wealth delinquency-managed loans(5) | $ | 97.8 | | $ | 271 | | $ | 255 | | $ | 231 | | $ | 304 | | $ | 234 | | $ | 292 | | Global Wealth delinquency-managed loans(5) | $ | 103.8 | | $ | 192 | | $ | 159 | | $ | 271 | | $ | 258 | | $ | 239 | | $ | 304 | |
| Ratio | Ratio | | 0.28 | % | 0.27 | % | 0.26 | % | 0.31 | % | 0.25 | % | 0.32 | % | Ratio | | 0.18 | % | 0.16 | % | 0.28 | % | 0.25 | % | 0.23 | % | 0.31 | % |
Global Wealth classifiably managed loans(6) | Global Wealth classifiably managed loans(6) | $ | 53.3 | | N/A | N/A | N/A | N/A | Global Wealth classifiably managed loans(6) | $ | 46.8 | | N/A | N/A | N/A | N/A |
| Legacy Franchises | Legacy Franchises | | | | | | Legacy Franchises | | | | | |
| Total | Total | $ | 30.3 | | $ | 375 | | $ | 393 | | $ | 677 | | $ | 299 | | $ | 293 | | $ | 633 | | Total | $ | 28.3 | | $ | 393 | | $ | 413 | | $ | 375 | | $ | 366 | | $ | 359 | | $ | 299 | |
| Ratio | Ratio | | 1.25 | % | 1.16 | % | 1.13 | % | 1.00 | % | 0.87 | % | 1.06 | % | Ratio | | 1.40 | % | 1.40 | % | 1.25 | % | 1.30 | % | 1.22 | % | 1.00 | % |
Asia Consumer(7)(8) | Asia Consumer(7)(8) | 13.4 | | 47 | | 51 | | 257 | | 63 | | 70 | | 344 | | Asia Consumer(7)(8) | 8.0 | | 49 | | 50 | | 47 | | 58 | | 60 | | 63 | |
| Ratio | Ratio | | 0.35 | % | 0.29 | % | 0.60 | % | 0.47 | % | 0.40 | % | 0.80 | % | Ratio | | 0.61 | % | 0.55 | % | 0.35 | % | 0.73 | % | 0.66 | % | 0.47 | % |
| Mexico Consumer | Mexico Consumer | 13.7 | | 173 | | 174 | | 198 | | 169 | | 159 | | 190 | | Mexico Consumer | 17.8 | | 235 | | 243 | | 173 | | 236 | | 228 | | 169 | |
| Ratio | Ratio | | 1.26 | % | 1.29 | % | 1.52 | % | 1.23 | % | 1.18 | % | 1.46 | % | Ratio | | 1.32 | % | 1.37 | % | 1.26 | % | 1.33 | % | 1.28 | % | 1.23 | % |
Legacy Holdings Assets (consumer)(9) | Legacy Holdings Assets (consumer)(9) | 3.2 | | 155 | | 168 | | 222 | | 67 | | 64 | | 99 | | Legacy Holdings Assets (consumer)(9) | 2.5 | | 109 | | 120 | | 155 | | 72 | | 71 | | 67 | |
| Ratio | Ratio | | 5.34 | % | 5.60 | % | 5.84 | % | 2.31 | % | 2.13 | % | 2.61 | % | Ratio | | 4.74 | % | 4.80 | % | 5.34 | % | 3.13 | % | 2.84 | % | 2.31 | % |
| Total Citigroup consumer | Total Citigroup consumer | $ | 357.6 | | $ | 1,932 | | $ | 1,776 | | $ | 1,882 | | $ | 2,077 | | $ | 1,728 | | $ | 1,988 | | Total Citigroup consumer | $ | 377.7 | | $ | 2,792 | | $ | 2,454 | | $ | 1,932 | | $ | 2,951 | | $ | 2,572 | | $ | 2,077 | |
| Ratio | Ratio | | 0.64 | % | 0.59 | % | 0.61 | % | 0.68 | % | 0.58 | % | 0.65 | % | Ratio | | 0.85 | % | 0.75 | % | 0.64 | % | 0.89 | % | 0.79 | % | 0.68 | % |
(1)End-of-period (EOP) loans include interest and fees on credit cards.
(2)The ratios of 90+ days past due and 30–89 days past due are calculated based on EOP loans, net of unearned income.
(3)The 90+ days past due and 30–89 days past due and related ratios for Retail banking exclude loans guaranteed by U.S. government-sponsored agencies since the potential risk of loss predominantly resides with the U.S. government-sponsored agencies. The amounts excluded for loans 90+ days past due and (EOP loans) were $61 million ($0.5 billion), $73 million ($0.5 billion) and $96 million ($0.6 billion), $119 million ($0.7 billion) and $146 million ($1.5 billion) at September 30, 2022,2023, June 30, 20222023 and September 30, 2021,2022, respectively. The amounts excluded for loans 30–89 days past due (the 30–89 days past due EOP loans have the same adjustments as the 90+ days past due EOP loans) were $67$70 million, $72$68 million and $78$67 million at September 30, 2022,2023, June 30, 20222023 and September 30, 2021,2022, respectively. The EOP loans in the table include the guaranteed loans.
(4)The 90+ days past due balances for Branded cards and Retail services are generally still accruing interest. Citi’s policy is generally to accrue interest on credit card loans until 180 days past due, unless a notification of bankruptcy filing has been received earlier.
(5)Excludes EOP classifiably managed Private bank loans. These loans are not included in the delinquency numerator, denominator and ratios.
(6)These loans are evaluated for non-accrual status and write-off primarily based on their internal risk classification and not solely on their delinquency status, and therefore delinquency metrics are excluded from this table. As of September 30, 2022,2023, June 30, 20222023 and September 30, 2021,2022, 95%, 94%97% and 93%95% of Global Wealth classifiably managed loans were rated investment grade. For additional information on the credit quality of the Global Wealth portfolio, including classifiably managed portfolios, see “Consumer Credit Trends” above.
(7)Asia Consumer includes delinquencies and loans in certain EMEA countries for all periods presented.
(8)Citi recentlyhas entered into agreements to sell certain Asia consumerConsumer banking businesses. Accordingly, the loans of these businesses have been reclassified as HFS in Other assets on the Consolidated Balance Sheet, and hence the loans and related delinquencies and ratios are not included in this table. The reclassifications commenced as follows: Australia (3Q21, and closed on June 1, 2022), the Philippines (4Q21, and closed on August 1, 2022) and Bahrain, India, Indonesia, Malaysia, Taiwan, Thailand and Vietnam (1Q22)in 1Q22 (Bahrain, Malaysia and Thailand closed in 4Q22; India and Vietnam closed in 1Q23 and Taiwan closed in 3Q23). In addition, a portfolio was reclassified to HFS in the first quarter of 2023 and subsequently sold in the second quarter of 2023. See Note 2 for additional information.
(9)The 90+ days past due and 30–89 days past due and related ratios exclude U.S. mortgage loans that are primarily related to U.S. mortgages guaranteed by U.S. government-sponsored agencies since the potential risk of loss predominantly resides with the U.S. agencies. The amounts excluded for 90+ days past due and (EOP loans) were $95$67 million ($0.30.2 billion), $84$77 million ($0.2 billion) and $138$95 million ($0.40.3 billion) at September 30, 2022,2023, June 30, 20222023 and September 30, 2021,2022, respectively. The amounts excluded for loans 30–89 days past due (the 30–89 days past due EOP loans have the same adjustments as the 90+ days past due EOP loans) were $36 million, $31 million $27 million and $42$31 million at September 30, 2022,2023, June 30, 20222023 and September 30, 2021,2022, respectively. The EOP loans in the table include the guaranteed loans.
N/A Not applicable
Consumer Loan Net Credit Losses (NCLs) and Ratios
| | | | Average loans(1) | Net credit losses(2) | | | Average loans(1) | Net credit losses(2) | |
| In millions of dollars, except average loan amounts in billions | In millions of dollars, except average loan amounts in billions | 3Q22 | 2Q22 | 3Q21 | | In millions of dollars, except average loan amounts in billions | 3Q23 | 2Q23 | 3Q22 | |
Personal Banking and Wealth Management(2) | Personal Banking and Wealth Management(2) | | | | | Personal Banking and Wealth Management(2) | | | | |
| Total | Total | $ | 324.6 | | $ | 723 | | $ | 699 | | $ | 641 | | | Total | $ | 346.5 | | $ | 1,367 | | $ | 1,241 | | $ | 723 | | |
| Ratio | Ratio | | 0.88 | % | 0.88 | % | 0.82 | % | | Ratio | | 1.57 | % | 1.47 | % | 0.88 | % | |
| U.S. Personal Banking | U.S. Personal Banking | | | | | U.S. Personal Banking | | | | |
| Total | Total | $ | 174.0 | | $ | 706 | | $ | 679 | | $ | 617 | | | Total | $ | 195.6 | | $ | 1,343 | | $ | 1,218 | | $ | 706 | | |
| Ratio | Ratio | | 1.61 | % | 1.63 | % | 1.55 | % | | Ratio | | 2.72 | % | 2.58 | % | 1.61 | % | |
| Cards | Cards | | | | | Cards | | | | |
| Total | Total | 137.9 | | 663 | | 619 | | 595 | | | Total | 153.4 | | 1,280 | | 1,159 | | 663 | | |
| Ratio | Ratio | | 1.91 | % | 1.87 | % | 1.90 | % | | Ratio | | 3.31 | % | 3.12 | % | 1.91 | % | |
| Branded cards | Branded cards | 91.8 | | 348 | | 329 | | 357 | | | Branded cards | 103.2 | | 707 | | 614 | | 348 | | |
| Ratio | Ratio | | 1.50 | % | 1.50 | % | 1.73 | % | | Ratio | | 2.72 | % | 2.47 | % | 1.50 | % | |
| Retail services | Retail services | 46.1 | | 315 | | 290 | | 238 | | | Retail services | 50.2 | | 573 | | 545 | | 315 | | |
| Ratio | Ratio | | 2.71 | % | 2.60 | % | 2.23 | % | | Ratio | | 4.53 | % | 4.46 | % | 2.71 | % | |
| Retail banking | Retail banking | 36.1 | | 43 | | 60 | | 22 | | | Retail banking | 42.2 | | 63 | | 59 | | 43 | | |
| Ratio | Ratio | | 0.47 | % | 0.70 | % | 0.26 | % | | Ratio | | 0.59 | % | 0.59 | % | 0.47 | % | |
| Global Wealth | Global Wealth | $ | 150.6 | | $ | 17 | | $ | 20 | | $ | 24 | | | Global Wealth | $ | 150.9 | | $ | 24 | | $ | 23 | | $ | 17 | | |
| Ratio | Ratio | | 0.04 | % | 0.05 | % | 0.06 | % | | Ratio | | 0.06 | % | 0.06 | % | 0.04 | % | |
| Legacy Franchises | Legacy Franchises | | | | | Legacy Franchises | | | | |
| Total | Total | $ | 31.8 | | $ | 158 | | $ | 128 | | $ | 281 | | | Total | $ | 29.1 | | $ | 212 | | $ | 188 | | $ | 158 | | |
| Ratio | Ratio | | 1.97 | % | 1.45 | % | 1.73 | % | | Ratio | | 2.89 | % | 2.59 | % | 1.97 | % | |
Asia Consumer(3)(4) | Asia Consumer(3)(4) | 15.2 | | 39 | | 35 | | 129 | | | Asia Consumer(3)(4) | 8.6 | | 31 | | 41 | | 39 | | |
| Ratio | Ratio | | 1.02 | % | 0.77 | % | 1.10 | % | | Ratio | | 1.43 | % | 1.73 | % | 1.02 | % | |
| Mexico Consumer | Mexico Consumer | 13.5 | | 130 | | 105 | | 175 | | | Mexico Consumer | 17.9 | | 186 | | 153 | | 130 | | |
| Ratio | Ratio | | 3.82 | % | 3.12 | % | 5.26 | % | | Ratio | | 4.12 | % | 3.65 | % | 3.82 | % | |
| Legacy Holdings Assets (consumer) | Legacy Holdings Assets (consumer) | 3.1 | | (11) | | (12) | | (23) | | | Legacy Holdings Assets (consumer) | 2.6 | | (5) | | (6) | | (11) | | |
| Ratio | Ratio | | (1.41) | % | (1.34) | % | (1.94) | % | | Ratio | | (0.76) | % | (0.86) | % | (1.41) | % | |
| Total Citigroup | Total Citigroup | $ | 356.4 | | $ | 881 | | $ | 827 | | $ | 922 | | | Total Citigroup | $ | 375.6 | | $ | 1,579 | | $ | 1,429 | | $ | 881 | | |
| Ratio | Ratio | | 0.98 | % | 0.94 | % | 0.98 | % | | Ratio | | 1.67 | % | 1.56 | % | 0.98 | % | |
(1)Average loans include interest and fees on credit cards.
(2)The ratios of net credit losses are calculated based on average loans, net of unearned income.
(3)Asia Consumer includes NCLs and average loans in certain EMEA countries (Russia Poland and Bahrain)Poland) for all periods presented.
(4)Citi recently entered into agreementsApproximately $4 million, $8 million and $34 million in NCLs relating to sell certain Asia consumer bankingConsumer businesses which have been reclassifiedclassified as HFSheld-for-sale in Other assets andOther liabilities on the Consolidated Balance Sheet. As a result, approximately $34 million, $50 million and $5 million in related net credit losses (NCLs)Sheet were recorded as a reduction in revenue (Other revenue) in 3Q22, 2Q223Q23, 2Q23 and 3Q21,3Q22, respectively. Accordingly, these NCLs are not included in this table. The reclassifications commenced as follows: Australia (3Q21, and closed on June 1, 2022), the Philippines (4Q21, and closed on August 1, 2022) and Bahrain, India, Indonesia, Malaysia, Taiwan, Thailand and Vietnam (1Q22). See Note 2 for additional information.information regarding businesses held-for-sale.
ADDITIONAL CONSUMER AND CORPORATE CREDIT DETAILS
Loans Outstanding
| | | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | 4th Qtr. | 3rd Qtr. | | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | 4th Qtr. | 3rd Qtr. |
| In millions of dollars | In millions of dollars | 2022 | 2022 | 2021 | In millions of dollars | 2023 | 2023 | 2022 |
| Consumer loans | Consumer loans | | Consumer loans | |
In North America offices(1) | In North America offices(1) | | In North America offices(1) | |
Residential first mortgages(2) | Residential first mortgages(2) | $ | 93,381 | | $ | 88,662 | | $ | 84,569 | | $ | 83,361 | | $ | 83,593 | | Residential first mortgages(2) | $ | 106,369 | | $ | 102,680 | | $ | 98,790 | | $ | 96,039 | | $ | 93,381 | |
Home equity loans(2) | Home equity loans(2) | 4,794 | | 5,074 | | 5,328 | | 5,745 | | 6,194 | | Home equity loans(2) | 3,796 | | 4,000 | | 4,244 | | 4,580 | | 4,794 | |
| Credit cards | Credit cards | 140,404 | | 137,412 | | 129,989 | | 133,868 | | 125,526 | | Credit cards | 155,698 | | 152,951 | | 145,543 | | 150,643 | | 140,404 | |
| Personal, small business and other | Personal, small business and other | 40,110 | | 39,436 | | 41,297 | | 40,713 | | 39,909 | | Personal, small business and other | 36,590 | | 37,161 | | 37,812 | | 37,752 | | 40,110 | |
| Total | Total | $ | 278,689 | | $ | 270,584 | | $ | 261,183 | | $ | 263,687 | | $ | 255,222 | | Total | $ | 302,453 | | $ | 296,792 | | $ | 286,389 | | $ | 289,014 | | $ | 278,689 | |
In offices outside North America(1) | In offices outside North America(1) | | In offices outside North America(1) | |
Residential mortgages(2) | Residential mortgages(2) | $ | 27,281 | | $ | 28,129 | | $ | 29,017 | | $ | 37,889 | | $ | 46,920 | | Residential mortgages(2) | $ | 26,389 | | $ | 27,090 | | $ | 26,913 | | $ | 28,114 | | $ | 27,281 | |
| Credit cards | Credit cards | 11,764 | | 11,858 | | 11,546 | | 17,808 | | 17,763 | | Credit cards | 13,573 | | 13,714 | | 13,033 | | 12,955 | | 11,764 | |
| Personal, small business and other | Personal, small business and other | 39,849 | | 45,034 | | 48,582 | | 57,150 | | 49,387 | | Personal, small business and other | 35,299 | | 36,995 | | 37,361 | | 37,984 | | 39,849 | |
| Total | Total | $ | 78,894 | | $ | 85,021 | | $ | 89,145 | | $ | 112,847 | | $ | 114,070 | | Total | $ | 75,261 | | $ | 77,799 | | $ | 77,307 | | $ | 79,053 | | $ | 78,894 | |
Consumer loans, net of unearned income(3) | Consumer loans, net of unearned income(3) | $ | 357,583 | | $ | 355,605 | | $ | 350,328 | | $ | 376,534 | | $ | 369,292 | | Consumer loans, net of unearned income(3) | $ | 377,714 | | $ | 374,591 | | $ | 363,696 | | $ | 368,067 | | $ | 357,583 | |
| Corporate loans | Corporate loans | | Corporate loans | |
In North America offices(1) | In North America offices(1) | | In North America offices(1) | |
| Commercial and industrial | Commercial and industrial | $ | 52,990 | | $ | 55,823 | | $ | 54,063 | | $ | 48,364 | | $ | 52,988 | | Commercial and industrial | $ | 58,130 | | $ | 59,790 | | $ | 59,790 | | $ | 56,176 | | $ | 52,990 | |
| Financial institutions | Financial institutions | 43,667 | | 46,088 | | 47,930 | | 49,804 | | 44,172 | | Financial institutions | 36,783 | | 36,268 | | 38,524 | | 43,399 | | 43,667 | |
Mortgage and real estate(2) | Mortgage and real estate(2) | 17,762 | | 17,359 | | 17,536 | | 15,965 | | 16,422 | | Mortgage and real estate(2) | 17,445 | | 17,495 | | 18,562 | | 17,829 | | 17,762 | |
| Installment and other | Installment and other | 21,222 | | 20,466 | | 18,812 | | 20,143 | | 16,944 | | Installment and other | 23,207 | | 22,153 | | 23,578 | | 23,767 | | 21,222 | |
| Lease financing | Lease financing | 383 | | 379 | | 379 | | 415 | | 425 | | Lease financing | 225 | | 224 | | 299 | | 308 | | 383 | |
| Total | Total | $ | 136,024 | | $ | 140,115 | | $ | 138,720 | | $ | 134,691 | | $ | 130,951 | | Total | $ | 135,790 | | $ | 135,930 | | $ | 140,753 | | $ | 141,479 | | $ | 136,024 | |
In offices outside North America(1) | In offices outside North America(1) | | In offices outside North America(1) | |
| Commercial and industrial | Commercial and industrial | $ | 100,570 | | $ | 108,274 | | $ | 112,732 | | $ | 102,735 | | $ | 105,124 | | Commercial and industrial | $ | 95,528 | | $ | 95,836 | | $ | 92,803 | | $ | 93,967 | | $ | 100,570 | |
| Financial institutions | Financial institutions | 23,604 | | 24,654 | | 27,657 | | 22,158 | | 25,013 | | Financial institutions | 23,759 | | 21,701 | | 22,272 | | 21,931 | | 23,604 | |
Mortgage and real estate(2) | Mortgage and real estate(2) | 4,005 | | 4,455 | | 4,705 | | 4,374 | | 4,749 | | Mortgage and real estate(2) | 6,481 | | 6,076 | | 4,975 | | 4,179 | | 4,005 | |
| Installment and other | Installment and other | 19,653 | | 19,862 | | 21,275 | | 22,812 | | 25,277 | | Installment and other | 24,407 | | 23,395 | | 24,800 | | 23,347 | | 19,653 | |
| Lease financing | Lease financing | 48 | | 53 | | 47 | | 40 | | 47 | | Lease financing | 46 | | 49 | | 49 | | 46 | | 48 | |
| Governments and official institutions | Governments and official institutions | 4,473 | | 4,315 | | 4,205 | | 4,423 | | 4,311 | | Governments and official institutions | 2,794 | | 3,034 | | 2,647 | | 4,205 | | 4,473 | |
| Total | Total | $ | 152,353 | | $ | 161,613 | | $ | 170,621 | | $ | 156,542 | | $ | 164,521 | | Total | $ | 153,015 | | $ | 150,091 | | $ | 147,546 | | $ | 147,675 | | $ | 152,353 | |
Corporate loans, net of unearned income, excluding portfolio layer cumulative basis adjustments(4) | | Corporate loans, net of unearned income, excluding portfolio layer cumulative basis adjustments(4) | $ | 288,805 | | $ | 286,021 | | $ | 288,299 | | $ | 289,154 | | $ | 288,377 | |
| Unallocated portfolio layer cumulative basis adjustments | | Unallocated portfolio layer cumulative basis adjustments | $ | (171) | | $ | — | | $ | — | | $ | — | | $ | — | |
Corporate loans, net of unearned income(4) | Corporate loans, net of unearned income(4) | $ | 288,377 | | $ | 301,728 | | $ | 309,341 | | $ | 291,233 | | $ | 295,472 | | Corporate loans, net of unearned income(4) | $ | 288,634 | | $ | 286,021 | | $ | 288,299 | | $ | 289,154 | | $ | 288,377 | |
| Total loans—net of unearned income | Total loans—net of unearned income | $ | 645,960 | | $ | 657,333 | | $ | 659,669 | | $ | 667,767 | | $ | 664,764 | | Total loans—net of unearned income | $ | 666,348 | | $ | 660,612 | | $ | 651,995 | | $ | 657,221 | | $ | 645,960 | |
| Allowance for credit losses on loans (ACLL) | Allowance for credit losses on loans (ACLL) | (16,309) | | (15,952) | | (15,393) | | (16,455) | | (17,715) | | Allowance for credit losses on loans (ACLL) | (17,629) | | (17,496) | | (17,169) | | (16,974) | | (16,309) | |
| Total loans—net of unearned income and ACLL | Total loans—net of unearned income and ACLL | $ | 629,651 | | $ | 641,381 | | $ | 644,276 | | $ | 651,312 | | $ | 647,049 | | Total loans—net of unearned income and ACLL | $ | 648,719 | | $ | 643,116 | | $ | 634,826 | | $ | 640,247 | | $ | 629,651 | |
ACLL as a percentage of total loans—
net of unearned income(5) | ACLL as a percentage of total loans—
net of unearned income(5) | 2.54 | % | 2.44 | % | 2.35 | % | 2.49 | % | 2.69 | % | ACLL as a percentage of total loans—
net of unearned income(5) | 2.68 | % | 2.67 | % | 2.65 | % | 2.60 | % | 2.54 | % |
ACLL for consumer loan losses as a percentage of
total consumer loans—net of unearned income(5) | ACLL for consumer loan losses as a percentage of
total consumer loans—net of unearned income(5) | 3.74 | % | 3.65 | % | 3.53 | % | 3.73 | % | 4.09 | % | ACLL for consumer loan losses as a percentage of
total consumer loans—net of unearned income(5) | 3.95 | % | 3.97 | % | 3.96 | % | 3.84 | % | 3.74 | % |
ACLL for corporate loan losses as a percentage of
total corporate loans—net of unearned income(5) | ACLL for corporate loan losses as a percentage of
total corporate loans—net of unearned income(5) | 1.04 | % | 1.00 | % | 1.00 | % | 0.85 | % | 0.91 | % | ACLL for corporate loan losses as a percentage of
total corporate loans—net of unearned income(5) | 0.97 | % | 0.94 | % | 0.98 | % | 1.01 | % | 1.04 | % |
(1)North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America. The classification of corporate loans between offices in North America and outside North America is based on the domicile of the booking unit. The difference between the domicile of the booking unit and the domicile of the managing unit is not material.
(2)Loans secured primarily by real estate.
(3)Consumer loans are net of unearned income of $671$789 million, $631$769 million, $591$748 million, $629$712 million and $616$671 million at September 30, 2022,2023, June 30, 2022,2023, March 31, 2022,2023, December 31, 20212022 and September 30, 2021,2022, respectively. Unearned income on consumer loans primarily represents unamortized origination fees and costs, premiums and discounts.
(4)Corporate loans include Mexico SBMM loans and are net of unearned income of $(750)$(806) million, $(759)$(795) million, $(766)$(801) million, $(770)$(797) million and $(798)$(750) million at September 30, 2022,2023, June 30, 2022,2023, March 31, 2022,2023, December 31, 20212022 and September 30, 2021,2022, respectively. Unearned income on corporate loans primarily represents interest received in advance, but not yet earned, on loans originated on a discounted basis.
(5)Because loans carried at fair value do not have an ACLL, they are excluded from the ACLL ratio calculation.
Details of Credit Loss Experience
| | | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | 4th Qtr. | 3rd Qtr. | | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | 4th Qtr. | 3rd Qtr. |
| In millions of dollars | In millions of dollars | 2022 | 2022 | 2021 | In millions of dollars | 2023 | 2023 | 2022 |
| Allowance for credit losses on loans (ACLL) at beginning of period | Allowance for credit losses on loans (ACLL) at beginning of period | $ | 15,952 | | $ | 15,393 | | $ | 16,455 | | $ | 17,715 | | $ | 19,238 | | Allowance for credit losses on loans (ACLL) at beginning of period | $ | 17,496 | | $ | 17,169 | | $ | 16,974 | | $ | 16,309 | | $ | 15,952 | |
| Adjustment to opening balance: | | Adjustment to opening balance: | |
Financial instruments—TDRs and vintage disclosures(1) | | Financial instruments—TDRs and vintage disclosures(1) | $ | — | | $ | — | | $ | (352) | | $ | — | | $ | — | |
| | Adjusted ACLL at beginning of period | | Adjusted ACLL at beginning of period | $ | 17,496 | | $ | 17,169 | | $ | 16,622 | | $ | 16,309 | | $ | 15,952 | |
| Provision for credit losses on loans (PCLL) | Provision for credit losses on loans (PCLL) | | Provision for credit losses on loans (PCLL) | |
| Consumer | Consumer | $ | 1,281 | | $ | 1,440 | | $ | (372) | | $ | (202) | | $ | (180) | | Consumer | $ | 1,656 | | $ | 1,838 | | $ | 1,800 | | $ | 1,779 | | $ | 1,281 | |
| Corporate | Corporate | 47 | | (56) | | 632 | | (108) | | (8) | | Corporate | 160 | | (77) | | (63) | | (6) | | 47 | |
| Total | Total | $ | 1,328 | | $ | 1,384 | | $ | 260 | | $ | (310) | | $ | (188) | | Total | $ | 1,816 | | $ | 1,761 | | $ | 1,737 | | $ | 1,773 | | $ | 1,328 | |
| Gross credit losses on loans | Gross credit losses on loans | | Gross credit losses on loans | |
| Consumer | Consumer | | Consumer | |
| In U.S. offices | In U.S. offices | $ | 946 | | $ | 934 | | $ | 947 | | $ | 802 | | $ | 893 | | In U.S. offices | $ | 1,611 | | $ | 1,513 | | $ | 1,329 | | $ | 1,117 | | $ | 946 | |
| In offices outside the U.S. | In offices outside the U.S. | 248 | | 221 | | 245 | | 360 | | 449 | | In offices outside the U.S. | 317 | | 280 | | 266 | | 220 | | 248 | |
| Corporate | Corporate | | Corporate | |
| In U.S. offices | In U.S. offices | 8 | | 21 | | 29 | | 27 | | 17 | | In U.S. offices | 16 | | 26 | | 16 | | 51 | | 8 | |
| In offices outside the U.S. | In offices outside the U.S. | 35 | | 36 | | 19 | | 90 | | 30 | | In offices outside the U.S. | 56 | | 60 | | 23 | | 79 | | 35 | |
| Total | Total | $ | 1,237 | | $ | 1,212 | | $ | 1,240 | | $ | 1,279 | | $ | 1,389 | | Total | $ | 2,000 | | $ | 1,879 | | $ | 1,634 | | $ | 1,467 | | $ | 1,237 | |
| Gross recoveries on loans | Gross recoveries on loans | | Gross recoveries on loans | |
| Consumer | Consumer | | Consumer | |
| In U.S. offices | In U.S. offices | $ | 252 | | $ | 265 | | $ | 293 | | $ | 273 | | $ | 299 | | In U.S. offices | $ | 274 | | $ | 301 | | $ | 262 | | $ | 235 | | $ | 252 | |
| In offices outside the U.S. | In offices outside the U.S. | 61 | | 63 | | 58 | | 108 | | 121 | | In offices outside the U.S. | 75 | | 63 | | 53 | | 40 | | 61 | |
| Corporate | Corporate | | Corporate | |
| In U.S. offices | In U.S. offices | 34 | | 2 | | 13 | | 8 | | 5 | | In U.S. offices | 9 | | 7 | | 10 | | 1 | | 34 | |
| In offices outside the U.S. | In offices outside the U.S. | 3 | | 32 | | 4 | | 24 | | 3 | | In offices outside the U.S. | 5 | | 4 | | 7 | | 11 | | 3 | |
| Total | Total | $ | 350 | | $ | 362 | | $ | 368 | | $ | 413 | | $ | 428 | | Total | $ | 363 | | $ | 375 | | $ | 332 | | $ | 287 | | $ | 350 | |
| Net credit losses on loans (NCLs) | Net credit losses on loans (NCLs) | | Net credit losses on loans (NCLs) | |
| In U.S. offices | In U.S. offices | $ | 668 | | $ | 688 | | $ | 670 | | $ | 548 | | $ | 606 | | In U.S. offices | $ | 1,344 | | $ | 1,231 | | $ | 1,073 | | $ | 932 | | $ | 668 | |
| In offices outside the U.S. | In offices outside the U.S. | 219 | | 162 | | 202 | | 318 | | 355 | | In offices outside the U.S. | 293 | | 273 | | 229 | | 248 | | 219 | |
| Total | Total | $ | 887 | | $ | 850 | | $ | 872 | | $ | 866 | | $ | 961 | | Total | $ | 1,637 | | $ | 1,504 | | $ | 1,302 | | $ | 1,180 | | $ | 887 | |
Other—net(6)(7) | Other—net(6)(7) | $ | (84) | | $ | 25 | | $ | (450) | | $ | (84) | | $ | (374) | | Other—net(6)(7) | $ | (46) | | $ | 70 | | $ | 112 | | $ | 72 | | $ | (84) | |
| Allowance for credit losses on loans (ACLL) at end of period | Allowance for credit losses on loans (ACLL) at end of period | $ | 16,309 | | $ | 15,952 | | $ | 15,393 | | $ | 16,455 | | $ | 17,715 | | Allowance for credit losses on loans (ACLL) at end of period | $ | 17,629 | | $ | 17,496 | | $ | 17,169 | | $ | 16,974 | | $ | 16,309 | |
ACLL as a percentage of EOP loans(7)(8) | ACLL as a percentage of EOP loans(7)(8) | 2.54 | % | 2.44 | % | 2.35 | % | 2.49 | % | 2.69 | % | ACLL as a percentage of EOP loans(7)(8) | 2.68 | % | 2.67 | % | 2.65 | % | 2.60 | % | 2.54 | % |
Allowance for credit losses on unfunded lending commitments (ACLUC)(8)(9) | Allowance for credit losses on unfunded lending commitments (ACLUC)(8)(9) | $ | 2,089 | | $ | 2,193 | | $ | 2,343 | | $ | 1,871 | | $ | 2,063 | | Allowance for credit losses on unfunded lending commitments (ACLUC)(8)(9) | $ | 1,806 | | $ | 1,862 | | $ | 1,959 | | $ | 2,151 | | $ | 2,089 | |
| Total ACLL and ACLUC | Total ACLL and ACLUC | $ | 18,398 | | $ | 18,145 | | $ | 17,736 | | $ | 18,326 | | $ | 19,778 | | Total ACLL and ACLUC | $ | 19,435 | | $ | 19,358 | | $ | 19,128 | | $ | 19,125 | | $ | 18,398 | |
| Net consumer credit losses on loans | Net consumer credit losses on loans | $ | 881 | | $ | 827 | | $ | 841 | | $ | 781 | | $ | 922 | | Net consumer credit losses on loans | $ | 1,579 | | $ | 1,429 | | $ | 1,280 | | $ | 1,062 | | $ | 881 | |
| As a percentage of average consumer loans | As a percentage of average consumer loans | 0.98 | % | 0.94 | % | 0.97 | % | 0.83 | % | 0.98 | % | As a percentage of average consumer loans | 1.67 | % | 1.56 | % | 1.43 | % | 1.17 | % | 0.98 | % |
| Net corporate credit losses on loans | Net corporate credit losses on loans | $ | 6 | | $ | 23 | | $ | 31 | | $ | 85 | | $ | 39 | | Net corporate credit losses on loans | $ | 58 | | $ | 75 | | $ | 22 | | $ | 118 | | $ | 6 | |
| As a percentage of average corporate loans | As a percentage of average corporate loans | 0.01 | % | 0.03 | % | 0.04 | % | 0.11 | % | 0.05 | % | As a percentage of average corporate loans | 0.08 | % | 0.11 | % | 0.03 | % | 0.16 | % | 0.01 | % |
ACLL by type at end of period(9) | | |
ACLL by type at end of period(10) | | ACLL by type at end of period(10) | |
| Consumer | Consumer | $ | 13,361 | | $ | 12,983 | | $ | 12,368 | | $ | 14,040 | | $ | 15,105 | | Consumer | $ | 14,912 | | $ | 14,866 | | $ | 14,389 | | $ | 14,119 | | $ | 13,361 | |
| Corporate | Corporate | 2,948 | | 2,969 | | 3,025 | | 2,415 | | 2,610 | | Corporate | 2,717 | | 2,630 | | 2,780 | | 2,855 | | 2,948 | |
| Total | Total | $ | 16,309 | | $ | 15,952 | | $ | 15,393 | | $ | 16,455 | | $ | 17,715 | | Total | $ | 17,629 | | $ | 17,496 | | $ | 17,169 | | $ | 16,974 | | $ | 16,309 | |
(1)On January 1, 2023, Citi adopted Accounting Standards Update (ASU) 2022-02, Financial Instruments—Credit Losses (Topic 326): TDRs and Vintage Disclosures. The ASU eliminated the accounting and disclosure requirements for TDRs, including the requirement to measure the ACLL for TDRs using a discounted cash flow (DCF) approach. On January 1, 2023, Citi recorded a $352 million decrease in the Allowance for loan losses, along with a $290 million
(1)after-tax increase to Retained earnings.
(2)Includes all adjustments to the allowance for credit losses, such as changes in the allowance from acquisitions, dispositions, securitizations, FX translation, purchase accounting adjustments, etc.
(2)(3)The third quarter of 2023 includes a decrease of approximately $46 million related to FX translation.
(4)The second quarter of 2023 includes an increase of approximately $70 million related to FX translation.
(5)The first quarter of 2023 includes an increase of approximately $112 million related to FX translation.
(6)The fourth quarter of 2022 includes an increase of approximately $72 million related to FX translation.
(7)The third quarter of 2022 includes a decrease of approximately $84 million related to FX translation.
(3)The second quarter of 2022 includes an increase of approximately $25 million related to FX translation.
(4)The first quarter of 2022 includes an approximate $350 million reclass related to the announced sales of Citi’s consumer banking businesses in Thailand, India, Malaysia, Taiwan, Indonesia, Bahrain and Vietnam. The ACLL was reclassified to Other assets during 1Q22. 1Q22 consumer also includes a decrease of approximately $100 million related to FX translation.
(5)The fourth quarter of 2021 includes an approximate $90 million reclass related to the announced sale of Citi’s consumer banking operations in the Philippines. The ACLL was reclassified to Other assets during 4Q21. 4Q21 consumer also includes a decrease of approximately $6 million related to FX translation.
(6)The third quarter of 2021 includes an approximate $280 million reclass related to the announced sale of Citi’s consumer banking business in Australia. The ACLL was reclassified to Other assets during 3Q21. 3Q21 consumer also includes a decrease of approximately $80 million related to FX translation.
(7)(8)September 30, 2022,2023, June 30, 2022,2023, March 31, 2022,2023, December 31, 20212022 and September 30, 20212022 exclude $3.9$7.4 billion, $4.5$5.8 billion, $5.7$5.1 billion, $6.1$5.4 billion and $7.2$3.9 billion, respectively, of loans that are carried at fair value.
(8)(9)Represents additional credit reserves recorded as Other liabilities on the Consolidated Balance Sheet.
(9)(10)See “Significant Accounting Policies and Significant Estimates” below. Attribution of the allowance is made for analytical purposes only and is available to absorb probable credit losses inherent in the overall portfolio.
Allowance for Credit Losses on Loans (ACLL)
The following tables detail information on Citi’s ACLL, loans and coverage ratios:
| | | | September 30, 2022 | | September 30, 2023 |
| In billions of dollars | In billions of dollars | ACLL | EOP loans, net of
unearned income | ACLL as a percentage of EOP loans(1) | In billions of dollars | ACLL | EOP loans, net of
unearned income | ACLL as a percentage of EOP loans(1) |
| Consumer | Consumer | | Consumer | |
North America cards(2) | North America cards(2) | $ | 10.6 | | $ | 140.4 | | 7.5 | % | North America cards(2) | $ | 12.2 | | $ | 155.7 | | 7.8 | % |
North America mortgages(3) | North America mortgages(3) | 0.2 | | 97.9 | | 0.2 | | North America mortgages(3) | 0.4 | | 110.0 | | 0.4 | |
North America other(3) | North America other(3) | 0.8 | | 40.1 | | 2.0 | | North America other(3) | 0.6 | | 36.6 | | 1.6 | |
| International cards | International cards | 0.9 | | 11.8 | | 7.6 | | International cards | 0.9 | | 13.6 | | 6.6 | |
International other(3) | International other(3) | 0.9 | | 67.2 | | 1.3 | | International other(3) | 0.8 | | 61.6 | | 1.3 | |
Total(1) | Total(1) | $ | 13.4 | | $ | 357.4 | | 3.7 | % | Total(1) | $ | 14.9 | | $ | 377.5 | | 4.0 | % |
| Corporate | Corporate | | Corporate | |
| Commercial and industrial | Commercial and industrial | $ | 2.0 | | $ | 151.6 | | 1.3 | % | Commercial and industrial | $ | 1.6 | | $ | 150.4 | | 1.1 | % |
| Financial institutions | Financial institutions | 0.3 | | 66.9 | | 0.4 | | Financial institutions | 0.3 | | 60.1 | | 0.5 | |
| Mortgage and real estate | Mortgage and real estate | 0.4 | | 21.7 | | 1.8 | | Mortgage and real estate | 0.6 | | 23.7 | | 2.5 | |
| Installment and other | Installment and other | 0.2 | | 44.5 | | 0.4 | | Installment and other | 0.2 | | 47.2 | | 0.4 | |
Total(1) | Total(1) | $ | 2.9 | | $ | 284.7 | | 1.0 | % | Total(1) | $ | 2.7 | | $ | 281.4 | | 1.0 | % |
Loans at fair value(1) | Loans at fair value(1) | N/A | $ | 3.9 | | N/A | Loans at fair value(1) | N/A | $ | 7.4 | | N/A |
| Total Citigroup | Total Citigroup | $ | 16.3 | | $ | 646.0 | | 2.5 | % | Total Citigroup | $ | 17.6 | | $ | 666.3 | | 2.7 | % |
| | | | December 31, 2021 | | December 31, 2022 |
| In billions of dollars | In billions of dollars | ACLL | EOP loans, net of
unearned income | ACLL as a percentage of EOP loans(1) | In billions of dollars | ACLL | EOP loans, net of
unearned income | ACLL as a percentage of EOP loans(1) |
| Consumer | Consumer | | Consumer | |
North America cards(2) | North America cards(2) | $ | 10.8 | | $ | 133.9 | | 8.1 | % | North America cards(2) | $ | 11.4 | | $ | 150.6 | | 7.6 | % |
North America mortgages(3) | North America mortgages(3) | 0.5 | | 89.1 | | 0.6 | | North America mortgages(3) | 0.5 | | 100.4 | | 0.5 | |
North America other(3) | North America other(3) | 0.4 | | 40.7 | | 1.0 | | North America other(3) | 0.6 | | 37.8 | | 1.6 | |
| International cards | International cards | 1.2 | | 17.8 | | 6.7 | | International cards | 0.8 | | 13.0 | | 6.2 | |
International other(3) | International other(3) | 1.2 | | 95.0 | | 1.3 | | International other(3) | 0.8 | | 66.0 | | 1.2 | |
Total(1) | Total(1) | $ | 14.1 | | $ | 376.5 | | 3.7 | % | Total(1) | $ | 14.1 | | $ | 367.8 | | 3.8 | % |
| Corporate | Corporate | | Corporate | |
| Commercial and industrial | Commercial and industrial | $ | 1.6 | | $ | 147.0 | | 1.1 | % | Commercial and industrial | $ | 1.9 | | $ | 147.8 | | 1.3 | % |
| Financial institutions | Financial institutions | 0.3 | | 71.8 | | 0.4 | | Financial institutions | 0.4 | | 64.9 | | 0.6 | |
| Mortgage and real estate | Mortgage and real estate | 0.3 | | 20.3 | | 1.5 | | Mortgage and real estate | 0.4 | | 21.9 | | 1.8 | |
| Installment and other | Installment and other | 0.2 | | 46.1 | | 0.4 | | Installment and other | 0.2 | | 49.4 | | 0.4 | |
Total(1) | Total(1) | $ | 2.4 | | $ | 285.2 | | 0.8 | % | Total(1) | $ | 2.9 | | $ | 284.0 | | 1.0 | % |
Loans at fair value(1) | Loans at fair value(1) | N/A | $ | 6.1 | | N/A | Loans at fair value(1) | N/A | $ | 5.4 | | N/A |
| Total Citigroup | Total Citigroup | $ | 16.5 | | $ | 667.8 | | 2.5 | % | Total Citigroup | $ | 17.0 | | $ | 657.2 | | 2.6 | % |
(1)Excludes loans carried at fair value, since they do not have an ACLL and are excluded from the ACLL ratio calculation.
(2)Includes both Branded cards and Retail services. As of September 30, 2022,2023, the $10.6$12.2 billion of ACLL represented approximately 4829 months of coincident net credit loss coverage.coverage (based on 3Q23 NCLs). As of September 30, 2023, Branded cards ACLL as a percentage of EOP loans was 6.3% and Retail services ACLL
as a percentage of EOP loans was 11.0%. As of December 31, 2022, the $11.4 billion of ACLL represented approximately 43 months of coincident net credit loss coverage (based on 4Q22 NCLs). As of December 31, 2022, Branded cards ACLL as a percentage of EOP loans was 6.2% and Retail services ACLL as a percentage of EOP loans was 10.1%10.3%. As of December 31, 2021, the $10.8 billion of loan loss reserves represented approximately 63 months of coincident net credit loss coverage. The decrease in the coincident coverage ratio at September 30, 2022 was primarily due to the relatively higher levels of NCLs during the third quarter of 2022. As of December 31, 2021, Branded cards ACLL as a percentage of EOP loans was 7.1% and Retail services ACLL as a percentage of EOP loans was 10.0%.
(3)Includes residential mortgages, retail loans and personal, small business and other loans, including those extended through the Private bank network.
N/A Not applicable
The following table details Citi’s corporate credit ACLL by industry exposure:
| | | September 30, 2022 | | September 30, 2023 |
| In millions of dollars, except percentages | In millions of dollars, except percentages | Funded exposure(1) | ACLL | ACLL as a % of funded exposure | In millions of dollars, except percentages | Funded exposure(1) | ACLL | ACLL as a % of funded exposure |
| Transportation and industrials | Transportation and industrials | $ | 52,978 | | $ | 734 | | 1.4 | % | Transportation and industrials | $ | 58,312 | | $ | 530 | | 0.9 | % |
| Technology, media and telecom | Technology, media and telecom | 30,164 | | 354 | | 1.2 | | Technology, media and telecom | 28,116 | | 356 | | 1.3 | |
| Consumer retail | Consumer retail | 32,305 | | 327 | | 1.0 | | Consumer retail | 34,117 | | 289 | | 0.8 | |
Real estate | Real estate | 45,582 | | 493 | | 1.1 | | Real estate | 49,107 | | 674 | | 1.4 | |
| Commercial | | Commercial | 34,950 | | 595 | | 1.7 | |
| Residential | | Residential | 14,157 | | 79 | | 0.6 | |
| Banks and finance companies | | Banks and finance companies | 45,506 | | 218 | | 0.5 | |
| Power, chemicals, metals and mining | Power, chemicals, metals and mining | 18,611 | | 366 | | 2.0 | | Power, chemicals, metals and mining | 18,737 | | 254 | | 1.4 | |
| Banks and finance companies | 38,537 | | 248 | | 0.6 | | |
| Energy and commodities | Energy and commodities | 14,628 | | 186 | | 1.3 | | Energy and commodities | 12,752 | | 155 | | 1.2 | |
| Asset managers and funds | 20,988 | | 28 | | 0.1 | | |
| Health | Health | 8,865 | | 73 | | 0.8 | | Health | 9,029 | | 83 | | 0.9 | |
| Insurance | Insurance | 3,350 | | 10 | | 0.3 | | Insurance | 3,550 | | 15 | | 0.4 | |
| Asset managers and funds | | Asset managers and funds | 5,559 | | 35 | | 0.6 | |
| Public sector | Public sector | 12,982 | | 52 | | 0.4 | | Public sector | 10,730 | | 58 | | 0.5 | |
| Financial markets infrastructure | Financial markets infrastructure | 57 | | — | | — | | Financial markets infrastructure | 123 | | — | | — | |
| Securities firms | Securities firms | 797 | | 21 | | 2.6 | | Securities firms | 623 | | 7 | | 1.1 | |
| Other industries | 4,464 | | 48 | | 1.1 | | |
Total classifiably managed loans(2) | $ | 284,308 | | $ | 2,940 | | 1.0 | % | |
Loans managed on a delinquency basis(3) | $ | 431 | | $ | 7 | | 1.6 | % | |
Other industries(3) | | Other industries(3) | 5,184 | | 43 | | 0.8 | |
Total | Total | $ | 284,739 | | $ | 2,947 | | 1.0 | % | Total | $ | 281,445 | | $ | 2,717 | | 1.0 | % |
(1) Funded exposure excludes loans carried at fair value of $3.6$7.2 billion that are not subject to ACLL under the CECL standard.
(2) As of September 30, 2022,2023, the portion of the ACLL attributed to the total funded CRE exposure (including the Private bank) was approximately 1.45%.
(3) Includes $0.8 billion of funded exposure at September 30, 2023, primarily related to commercial credit card delinquency-managed loans.
(4) As of September 30, 2023, the ACLL shown above reflects coverage of 0.4% of funded investment-grade exposure and 3.2%2.7% of funded non-investment-grade exposure.
(3) Primarily associated with delinquency-managed loans including commercial credit cards and other loans, and unearned income at September 30, 2022.
The following table details Citi’s corporate credit ACLL by industry exposure:
| | | | December 31, 2021 | | December 31, 2022 |
| In millions of dollars, except percentages | In millions of dollars, except percentages | Funded exposure(1) | ACLL | ACLL as a % of funded exposure | In millions of dollars, except percentages | Funded exposure(1) | ACLL | ACLL as a % of funded exposure |
| Transportation and industrials | Transportation and industrials | $ | 51,502 | | $ | 597 | | 1.2 | % | Transportation and industrials | $ | 57,271 | | $ | 699 | | 1.2 | % |
| Technology, media and telecom | Technology, media and telecom | 28,542 | | 170 | | 0.6 | | Technology, media and telecom | 28,931 | | 330 | | 1.1 | |
| Consumer retail | Consumer retail | 32,894 | | 288 | | 0.9 | | Consumer retail | 32,687 | | 358 | | 1.1 | |
| Real estate | Real estate | 46,220 | | 509 | | 1.1 | | Real estate | 48,539 | | 500 | | 1.0 | |
| Commercial | | Commercial | 34,112 | | 428 | | 1.3 | |
| Residential | | Residential | 14,427 | | 72 | | 0.5 | |
| Power, chemicals, metals and mining | Power, chemicals, metals and mining | 20,224 | | 151 | | 0.7 | | Power, chemicals, metals and mining | 18,326 | | 288 | | 1.6 | |
| Banks and finance companies | Banks and finance companies | 36,804 | | 197 | | 0.5 | | Banks and finance companies | 42,276 | | 225 | | 0.5 | |
| Energy and commodities | Energy and commodities | 13,485 | | 268 | | 2.0 | | Energy and commodities | 13,069 | | 188 | | 1.4 | |
| Asset managers and funds | Asset managers and funds | 26,879 | | 34 | | 0.1 | | Asset managers and funds | 13,162 | | 38 | | 0.3 | |
| Health | Health | 8,826 | | 73 | | 0.8 | | Health | 8,771 | | 81 | | 0.9 | |
| Insurance | Insurance | 3,162 | | 8 | | 0.3 | | Insurance | 4,417 | | 11 | | 0.2 | |
| Public sector | Public sector | 12,464 | | 74 | | 0.6 | | Public sector | 11,736 | | 58 | | 0.5 | |
| Financial markets infrastructure | Financial markets infrastructure | 109 | | — | | — | | Financial markets infrastructure | 60 | | — | | — | |
| Securities firms | Securities firms | 613 | | 10 | | 1.6 | | Securities firms | 569 | | 11 | | 1.9 | |
| Other industries | 2,803 | | 28 | | 1.0 | | |
Total classifiably managed loans(2) | $ | 284,527 | | $ | 2,407 | | 0.8 | % | |
Loans managed on a delinquency basis(3) | $ | 636 | | $ | 8 | | 1.3 | % | |
Other industries(2) | | Other industries(2) | 4,217 | | 68 | | 1.6 | |
Total | Total | $ | 285,163 | | $ | 2,415 | | 0.8 | % | Total | $ | 284,031 | | $ | 2,855 | | 1.0 | % |
(1) Funded exposure excludes loans carried at fair value of $6.1$5.1 billion that are not subject to ACLL under the CECL standard.
(2) Includes $0.6 billion of funded exposure at December 31, 2022, primarily related to commercial credit card delinquency-managed loans.
(3) As of December 31, 2021,2022, the ACLL shown above reflects coverage of 0.7%0.4% of funded investment-grade exposure and 2.3%3.0% of funded non-investment-grade exposure.
(3) Primarily associated with delinquency-managed loans including commercial credit cards and other loans, and unearned income at December 31, 2021.
Non-Accrual Loans and Assets and Renegotiated Loans
For additional information on Citi’s non-accrual loans and assets, and renegotiated loans, see “Non-Accrual Loans and Assets and Renegotiated Loans”Assets” in Citi’s 20212022 Form 10-K.
Non-Accrual Loans
The table below summarizes Citigroup’s non-accrual loans as of the periods indicated. Non-accrual loans may still be current on interest payments. In situations where Citi reasonably expects that only a portion of the principal owed will ultimately be collected, all payments received are reflected as a reduction of principal and not as interest income. For all other non-accrual loans, cash interest receipts are generally recorded as revenue.
Citi’s non-accrual loans increased $695 million, or 27%, from June 30, 2023, primarily driven by the downgrade of two corporate loans in North America and EMEA.
| | | Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sept. 30, | | Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sept. 30, |
| In millions of dollars | In millions of dollars | 2022 | 2022 | 2021 | In millions of dollars | 2023 | 2023 | 2022 |
Corporate non-accrual loans by region(1)(2)(3) | Corporate non-accrual loans by region(1)(2)(3) | | Corporate non-accrual loans by region(1)(2)(3) | |
| North America | North America | $ | 276 | | $ | 304 | | $ | 462 | | $ | 510 | | $ | 923 | | North America | $ | 934 | | $ | 358 | | $ | 285 | | $ | 138 | | $ | 276 | |
| EMEA | EMEA | 598 | | 712 | | 688 | | 367 | | 407 | | EMEA | 507 | | 350 | | 383 | | 502 | | 598 | |
| Latin America | Latin America | 555 | | 563 | | 631 | | 568 | | 679 | | Latin America | 407 | | 428 | | 462 | | 429 | | 555 | |
| Asia | Asia | 56 | | 76 | | 85 | | 108 | | 110 | | Asia | 127 | | 125 | | 83 | | 53 | | 56 | |
| Total | Total | $ | 1,485 | | $ | 1,655 | | $ | 1,866 | | $ | 1,553 | | $ | 2,119 | | Total | $ | 1,975 | | $ | 1,261 | | $ | 1,213 | | $ | 1,122 | | $ | 1,485 | |
Corporate non-accrual loans(1)(2)(3) | Corporate non-accrual loans(1)(2)(3) | | Corporate non-accrual loans(1)(2)(3) | |
| Banking | Banking | $ | 1,085 | | $ | 1,015 | | $ | 1,323 | | $ | 1,239 | | $ | 1,739 | | Banking | $ | 1,689 | | $ | 931 | | $ | 868 | | $ | 767 | | $ | 1,085 | |
| Services | Services | 185 | | 353 | | 297 | | 70 | | 74 | | Services | 94 | | 123 | | 133 | | 153 | | 185 | |
| Markets | Markets | — | | 11 | | 13 | | 12 | | 13 | | Markets | — | | 1 | | 3 | | 3 | | — | |
| Mexico SBMM | Mexico SBMM | 215 | | 276 | | 233 | | 232 | | 293 | | Mexico SBMM | 192 | | 206 | | 209 | | 199 | | 215 | |
| Total | Total | $ | 1,485 | | $ | 1,655 | | $ | 1,866 | | $ | 1,553 | | $ | 2,119 | | Total | $ | 1,975 | | $ | 1,261 | | $ | 1,213 | | $ | 1,122 | | $ | 1,485 | |
Consumer non-accrual loans(1) | Consumer non-accrual loans(1) | | Consumer non-accrual loans(1) | |
| U.S. Personal Banking and Global Wealth | U.S. Personal Banking and Global Wealth | $ | 585 | | $ | 536 | | $ | 586 | | $ | 680 | | $ | 637 | | U.S. Personal Banking and Global Wealth | $ | 567 | | $ | 536 | | $ | 608 | | $ | 541 | | $ | 585 | |
Asia Consumer(4) | Asia Consumer(4) | 30 | | 34 | | 38 | | 209 | | 259 | | Asia Consumer(4) | 25 | | 24 | | 29 | | 30 | | 30 | |
| Mexico Consumer | Mexico Consumer | 486 | | 493 | | 512 | | 524 | | 549 | | Mexico Consumer | 463 | | 498 | | 480 | | 457 | | 486 | |
| Legacy Holdings Assets—Consumer | Legacy Holdings Assets—Consumer | 300 | | 317 | | 381 | | 413 | | 425 | | Legacy Holdings Assets—Consumer | 247 | | 263 | | 278 | | 289 | | 300 | |
| Total | Total | $ | 1,401 | | $ | 1,380 | | $ | 1,517 | | $ | 1,826 | | $ | 1,870 | | Total | $ | 1,302 | | $ | 1,321 | | $ | 1,395 | | $ | 1,317 | | $ | 1,401 | |
| Total non-accrual loans | Total non-accrual loans | $ | 2,886 | | $ | 3,035 | | $ | 3,383 | | $ | 3,379 | | $ | 3,989 | | Total non-accrual loans | $ | 3,277 | | $ | 2,582 | | $ | 2,608 | | $ | 2,439 | | $ | 2,886 | |
(1)Corporate loans are placed on non-accrual status based upon a review by Citigroup’s risk officers. Corporate non-accrual loans may still be current on interest payments. With limited exceptions, the following practices are applied for consumer loans: consumer loans, excluding credit cards and mortgages, are placed on non-accrual status at 90 days past due and are charged off at 120 days past due; residential mortgage loans are placed on non-accrual status at 90 days past due and written down to net realizable value at 180 days past due. Consistent with industry conventions, Citigroup generally accrues interest on credit card loans until such loans are charged off, which typically occurs at 180 days contractual delinquency. As such, the non-accrual loan disclosures do not include credit card loans. The balances above represent non-accrual loans within Corporate loans and Consumer loans on the Consolidated Balance Sheet.
(2)Approximately 68%62%, 52%51%, 66%61%, 56%50% and 58%68% of Citi’s corporate non-accrual loans were performing at September 30, 2022,2023, June 30, 2022,2023, March 31, 2022,2023, December 31, 20212022 and September 30, 2021,2022, respectively.
(3)The September 30, 20222023 total corporate non-accrual loans represented 0.51%0.68% of total cortotal corporateporate loans.
(4) Asia Consumer includes balances in certain EMEA countries for all periods presented.
50On January 1, 2023, Citi adopted ASU 2022-02, which eliminated the accounting and disclosure requirements for TDRs (see Note 1 for additional information). See Note 13 for information on loan modifications during the nine months ended September 30, 2023.
The changes in Citigroup’s non-accrual loans were as follows:
| | | Three Months Ended | Three Months Ended | | Three Months Ended | Three Months Ended |
| | September 30, 2022 | September 30, 2021 | | September 30, 2023 | September 30, 2022 |
| In millions of dollars | In millions of dollars | Corporate | Consumer | Total | Corporate | Consumer | Total | In millions of dollars | Corporate | Consumer | Total | Corporate | Consumer | Total |
| Non-accrual loans at beginning of quarter | Non-accrual loans at beginning of quarter | $ | 1,655 | | $ | 1,380 | | $ | 3,035 | | $ | 2,250 | | $ | 2,132 | | $ | 4,382 | | Non-accrual loans at beginning of quarter | $ | 1,261 | | $ | 1,321 | | $ | 2,582 | | $ | 1,655 | | $ | 1,380 | | $ | 3,035 | |
| Additions | Additions | 372 | | 417 | | 789 | | 318 | | 501 | | 819 | | Additions | 1,013 | | 453 | | 1,466 | | 372 | | 417 | | 789 | |
| Sales and transfers to HFS | Sales and transfers to HFS | (15) | | (4) | | (19) | | (26) | | (55) | | (81) | | Sales and transfers to HFS | (52) | | (2) | | (54) | | (15) | | (4) | | (19) | |
| Returned to performing | Returned to performing | (41) | | (68) | | (109) | | (13) | | (195) | | (208) | | Returned to performing | (17) | | (71) | | (88) | | (41) | | (68) | | (109) | |
| Paydowns/settlements | Paydowns/settlements | (442) | | (130) | | (572) | | (344) | | (254) | | (598) | | Paydowns/settlements | (181) | | (126) | | (307) | | (442) | | (130) | | (572) | |
| Charge-offs | Charge-offs | (43) | | (168) | | (211) | | (45) | | (229) | | (274) | | Charge-offs | (45) | | (227) | | (272) | | (43) | | (168) | | (211) | |
| Other | Other | (1) | | (26) | | (27) | | (21) | | (30) | | (51) | | Other | (4) | | (46) | | (50) | | (1) | | (26) | | (27) | |
| Ending balance | Ending balance | $ | 1,485 | | $ | 1,401 | | $ | 2,886 | | $ | 2,119 | | $ | 1,870 | | $ | 3,989 | | Ending balance | $ | 1,975 | | $ | 1,302 | | $ | 3,277 | | $ | 1,485 | | $ | 1,401 | | $ | 2,886 | |
| | Nine Months Ended | Nine Months Ended | | Nine Months Ended | Nine Months Ended |
| | September 30, 2022 | September 30, 2021 | | September 30, 2023 | September 30, 2022 |
| In millions of dollars | In millions of dollars | Corporate | Consumer | Total | Corporate | Consumer | Total | In millions of dollars | Corporate | Consumer | Total | Corporate | Consumer | Total |
| Non-accrual loans at beginning of year | Non-accrual loans at beginning of year | $ | 1,553 | | $ | 1,826 | | $ | 3,379 | | $ | 3,046 | | $ | 2,622 | | $ | 5,668 | | Non-accrual loans at beginning of year | $ | 1,122 | | $ | 1,317 | | $ | 2,439 | | $ | 1,553 | | $ | 1,826 | | $ | 3,379 | |
| Additions | Additions | 1,913 | | 1,060 | | 2,973 | | 1,222 | | 1,798 | | 3,020 | | Additions | 1,702 | | 1,234 | | 2,936 | | 1,913 | | 1,060 | | 2,973 | |
| Sales and transfers to HFS | Sales and transfers to HFS | (21) | | (228) | | (249) | | (521) | | (248) | | (769) | | Sales and transfers to HFS | (77) | | (16) | | (93) | | (21) | | (228) | | (249) | |
| Returned to performing | Returned to performing | (294) | | (324) | | (618) | | (125) | | (605) | | (730) | | Returned to performing | (106) | | (247) | | (353) | | (294) | | (324) | | (618) | |
| Paydowns/settlements | Paydowns/settlements | (1,511) | | (425) | | (1,936) | | (1,122) | | (630) | | (1,752) | | Paydowns/settlements | (500) | | (361) | | (861) | | (1,511) | | (425) | | (1,936) | |
| Charge-offs | Charge-offs | (148) | | (463) | | (611) | | (362) | | (1,026) | | (1,388) | | Charge-offs | (152) | | (615) | | (767) | | (148) | | (463) | | (611) | |
| Other | Other | (7) | | (45) | | (52) | | (19) | | (41) | | (60) | | Other | (14) | | (10) | | (24) | | (7) | | (45) | | (52) | |
| Ending balance | Ending balance | $ | 1,485 | | $ | 1,401 | | $ | 2,886 | | $ | 2,119 | | $ | 1,870 | | $ | 3,989 | | Ending balance | $ | 1,975 | | $ | 1,302 | | $ | 3,277 | | $ | 1,485 | | $ | 1,401 | | $ | 2,886 | |
The table below summarizes Citigroup’s other real estate owned (OREO) assets. OREO is recorded on the Consolidated Balance Sheet within Other assets. This represents the carrying value of all real estate property acquired by foreclosure or other legal proceedings when Citi has taken possession of the collateral:
| | | Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sept. 30, | | Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sept. 30, |
| In millions of dollars | In millions of dollars | 2022 | 2022 | 2021 | In millions of dollars | 2023 | 2023 | 2022 |
| OREO | OREO | | OREO | |
| North America | North America | $ | 9 | | $ | 7 | | $ | 14 | | $ | 15 | | $ | 10 | | North America | $ | 23 | | $ | 17 | | $ | 15 | | $ | 10 | | $ | 9 | |
| EMEA | EMEA | — | | — | | — | | — | | — | | EMEA | — | | — | | — | | — | | — | |
| Latin America | Latin America | 5 | | 5 | | 7 | | 8 | | 10 | | Latin America | 12 | | 13 | | 5 | | 4 | | 5 | |
| Asia | Asia | 2 | | 1 | | 5 | | 4 | | 1 | | Asia | 2 | | 1 | | 1 | | 1 | | 2 | |
| Total OREO | Total OREO | $ | 16 | | $ | 13 | | $ | 26 | | $ | 27 | | $ | 21 | | Total OREO | $ | 37 | | $ | 31 | | $ | 21 | | $ | 15 | | $ | 16 | |
| | Non-accrual assets | Non-accrual assets | | Non-accrual assets | |
| Corporate non-accrual loans | Corporate non-accrual loans | $ | 1,485 | | $ | 1,655 | | $ | 1,866 | | $ | 1,553 | | $ | 2,119 | | Corporate non-accrual loans | $ | 1,975 | | $ | 1,261 | | $ | 1,213 | | $ | 1,122 | | $ | 1,485 | |
| Consumer non-accrual loans | Consumer non-accrual loans | 1,401 | | 1,380 | | 1,517 | | 1,826 | | 1,870 | | Consumer non-accrual loans | 1,302 | | 1,321 | | 1,395 | | 1,317 | | 1,401 | |
| Non-accrual loans (NAL) | Non-accrual loans (NAL) | $ | 2,886 | | $ | 3,035 | | $ | 3,383 | | $ | 3,379 | | $ | 3,989 | | Non-accrual loans (NAL) | $ | 3,277 | | $ | 2,582 | | $ | 2,608 | | $ | 2,439 | | $ | 2,886 | |
| OREO | OREO | $ | 16 | | $ | 13 | | $ | 26 | | $ | 27 | | $ | 21 | | OREO | $ | 37 | | $ | 31 | | $ | 21 | | $ | 15 | | $ | 16 | |
| Non-accrual assets (NAA) | Non-accrual assets (NAA) | $ | 2,902 | | $ | 3,048 | | $ | 3,409 | | $ | 3,406 | | $ | 4,010 | | Non-accrual assets (NAA) | $ | 3,314 | | $ | 2,613 | | $ | 2,629 | | $ | 2,454 | | $ | 2,902 | |
| NAL as a percentage of total loans | NAL as a percentage of total loans | 0.45 | % | 0.46 | % | 0.51 | % | 0.51 | % | 0.60 | % | NAL as a percentage of total loans | 0.49 | % | 0.39 | % | 0.40 | % | 0.37 | % | 0.45 | % |
| NAA as a percentage of total assets | NAA as a percentage of total assets | 0.12 | | 0.13 | | 0.14 | | 0.15 | | 0.17 | | NAA as a percentage of total assets | 0.14 | | 0.11 | | 0.11 | | 0.10 | | 0.12 | |
ACLL as a percentage of NAL(1) | ACLL as a percentage of NAL(1) | 565 | % | 526 | % | 455 | % | 487 | % | 444 | % | ACLL as a percentage of NAL(1) | 538 | | 678 | | 658 | | 696 | | 565 | |
(1)The ACLL includes the allowance for Citi’s credit card portfolios and purchased credit-deteriorated loans, while the non-accrual loans exclude credit card balances (with the exception of certain international portfolios).
Renegotiated Loans
The following table presents Citi’s loans modified in TDRs:
| | | | | | | | |
| In millions of dollars | Sept. 30, 2022 | Dec. 31, 2021 |
Corporate renegotiated loans(1) | | |
| In U.S. offices | | |
Commercial and industrial(2) | $ | 69 | | $ | 103 | |
| Mortgage and real estate | 2 | | 2 | |
| Financial institutions | — | | — | |
| Other | 13 | | 20 | |
| Total | $ | 84 | | $ | 125 | |
| In offices outside the U.S. | | |
Commercial and industrial(2) | $ | 45 | | $ | 133 | |
| Mortgage and real estate | 12 | | 18 | |
| Financial institutions | — | | — | |
| Other | 9 | | 8 | |
| Total | $ | 66 | | $ | 159 | |
| Total corporate renegotiated loans | $ | 150 | | $ | 284 | |
Consumer renegotiated loans(3) | | |
| In U.S. offices | | |
| Mortgage and real estate | $ | 1,345 | | $ | 1,485 | |
| Cards | 1,143 | | 1,269 | |
| Installment and other | 20 | | 26 | |
| Total | $ | 2,508 | | $ | 2,780 | |
| In offices outside the U.S. | | |
| Mortgage and real estate | $ | 147 | | $ | 227 | |
| Cards | 69 | | 313 | |
| Installment and other | 94 | | 428 | |
| Total | $ | 310 | | $ | 968 | |
| Total consumer renegotiated loans | $ | 2,818 | | $ | 3,748 | |
(1)Includes $150 million and $284 million of non-accrual loans included in the non-accrual loans table above at September 30, 2022 and December 31, 2021, respectively.
(2)In addition to modifications reflected as TDRs at September 30, 2022 and December 31, 2021, Citi may have modifications that were not considered TDRs because the modifications did not involve a concession or because they qualified for exemptions from TDR accounting provided by the CARES Act or the interagency guidance.
(3)Includes $555 million and $664 million of non-accrual loans included in the non-accrual loans table above at September 30, 2022 and December 31, 2021, respectively. The remaining loans were accruing interest.
LIQUIDITY RISK
For additional information on funding and liquidity at Citi, including its objectives, management and measurement, see “Liquidity Risk” and “Risk Factors—Liquidity Risks” in Citi’s 20212022 Form 10-K.
High-Quality Liquid Assets (HQLA)
| | | Citibank | Citi non-bank and other entities | Total | | Citibank | Citi non-bank and other entities | Total |
| In billions of dollars | In billions of dollars | Sept. 30, 2022 | Jun. 30, 2022 | Sept. 30, 2021 | Sept. 30, 2022 | Jun. 30, 2022 | Sept. 30, 2021 | Sept. 30, 2022 | Jun. 30, 2022 | Sept. 30, 2021 | In billions of dollars | Sept. 30, 2023 | Jun. 30, 2023 | Sept. 30, 2022 | Sept. 30, 2023 | Jun. 30, 2023 | Sept. 30, 2022 | Sept. 30, 2023 | Jun. 30, 2023 | Sept. 30, 2022 |
| Available cash | Available cash | $ | 202.2 | | $ | 188.1 | | $ | 255.1 | | $ | 2.1 | | $ | 1.7 | | $ | 3.5 | | $ | 204.3 | | $ | 189.8 | | $ | 258.6 | | Available cash | $ | 203.1 | | $ | 254.3 | | $ | 202.2 | | $ | 5.4 | | $ | 4.9 | | $ | 2.1 | | $ | 208.5 | | $ | 259.2 | | $ | 204.3 | |
| U.S. sovereign | U.S. sovereign | 144.6 | | 149.4 | | 108.9 | | 69.4 | | 55.4 | | 64.3 | | 214.0 | | 204.8 | | 173.2 | | U.S. sovereign | 134.2 | | 120.3 | | 144.6 | | 79.3 | | 74.7 | | 69.4 | | 213.5 | | 195.0 | | 214.0 | |
| U.S. agency/agency MBS | U.S. agency/agency MBS | 52.5 | | 54.4 | | 45.3 | | 4.7 | | 4.6 | | 6.0 | | 57.2 | | 59.0 | | 51.3 | | U.S. agency/agency MBS | 48.5 | | 45.1 | | 52.5 | | 3.6 | | 3.8 | | 4.7 | | 52.1 | | 48.9 | | 57.2 | |
Foreign government debt(1) | Foreign government debt(1) | 63.3 | | 60.4 | | 50.2 | | 15.7 | | 13.9 | | 11.2 | | 79.0 | | 74.3 | | 61.4 | | Foreign government debt(1) | 74.3 | | 60.9 | | 63.3 | | 19.9 | | 19.1 | | 15.7 | | 94.2 | | 80.0 | | 79.0 | |
| Other investment grade | Other investment grade | 2.0 | | 2.0 | | 1.7 | | 0.6 | | 1.3 | | 0.3 | | 2.6 | | 3.3 | | 2.0 | | Other investment grade | 0.3 | | 0.5 | | 2.0 | | 0.7 | | 0.2 | | 0.6 | | 1.0 | | 0.7 | | 2.6 | |
| Total HQLA (AVG) | Total HQLA (AVG) | $ | 464.6 | | $ | 454.3 | | $ | 461.2 | | $ | 92.5 | | $ | 76.9 | | $ | 85.3 | | $ | 557.1 | | $ | 531.2 | | $ | 546.5 | | Total HQLA (AVG) | $ | 460.4 | | $ | 481.1 | | $ | 464.6 | | $ | 108.9 | | $ | 102.7 | | $ | 92.5 | | $ | 569.3 | | $ | 583.8 | | $ | 557.1 | |
Note: The amounts shown in the table above are presented on an average basis. For securities, the amounts represent the liquidity value that potentially could be realized and, therefore, exclude any securities that are encumbered and incorporate any haircuts applicable under the U.S. LCR rule. The table above incorporates various restrictions that could limit the transferability of liquidity between legal entities, including Section 23A of the Federal Reserve Act.
(1) Foreign government debt includes securities issued or guaranteed by foreign sovereigns, agencies and multilateral development banks. Foreign government debt securities are held largely to support local liquidity requirements and Citi’s local franchises and principally include government bonds from Japan, Korea, Mexico, Singapore, KoreaIndia and Hong Kong.
The table above includes average amounts of HQLA held at Citigroup’s operating entities that are eligible for inclusion in the calculation of Citigroup’s consolidated Liquidity Coverage ratio (LCR), pursuant to the U.S. LCR rules. These amounts include the HQLA needed to meet the minimum requirements at these entities as well as any amounts in excess of these minimums that are available to be transferred to other entities within Citigroup. Citigroup’sThe decrease in Citi’s average HQLA forfrom the thirdsecond quarter of 2022 increased quarter-over-quarter,2023 was primarily driven by an increasethe reduction in unsecured wholesale funding.the Available cash component of average HQLA, due to a reduction in deposits.
As of September 30, 2022,2023, Citigroup had approximately $967$937 billion of available liquidity resources to support client and business needs, including end-of-period HQLA assets;($558 billion); additional unencumbered securities,HQLA, including excess liquidity held at bank entities that is non-transferable to other entities within Citigroup;Citigroup ($203 billion); and unused borrowing capacity from available assets not already accounted for within Citi’s HQLA to support additional advances from the Federal Home Loan Bank (FHLB) and the Federal Reserve Bank discount window borrowing capacity.($176 billion).
Short-Term Liquidity Measurement: Liquidity Coverage Ratio (LCR)
In addition to internal 30-day liquidity stress testing performed for Citi’s major entities, operating subsidiaries and countries, Citi also monitors its liquidity by reference to the LCR. The table below details the components of Citi’s LCR calculation and HQLA in excess of net outflows for the periods indicated:
| | In billions of dollars | In billions of dollars | Sept. 30, 2022 | Jun. 30, 2022 | Sept. 30, 2021 | In billions of dollars | Sept. 30, 2023 | Jun. 30, 2023 | Sept. 30, 2022 |
| HQLA | HQLA | $ | 557.1 | | $ | 531.2 | | $ | 546.5 | | HQLA | $ | 569.3 | | $ | 583.8 | | $ | 557.1 | |
| Net outflows | Net outflows | 477.0 | | 460.2 | | 474.8 | | Net outflows | 485.3 | | 491.9 | | 477.0 | |
| LCR | LCR | 117 | % | 115 | % | 115 | % | LCR | 117 | % | 119 | % | 117 | % |
| HQLA in excess of net outflows | HQLA in excess of net outflows | $ | 80.1 | | $ | 71.0 | | $ | 71.7 | | HQLA in excess of net outflows | $ | 84.0 | | $ | 91.9 | | $ | 80.1 | |
Note: The amounts are presented on an average basis.
As of September 30, 2022,2023, Citigroup’s average LCR increaseddecreased 2% from the quarter ended June 30, 2022. The increase was2023, primarily driven by an increasethe reduction in the Available cash component of average HQLA, partially offset by an increasedue to a reduction in deposits.
In addition, considering Citi’s total available liquidity resources at quarter end of $937 billion, Citi maintained approximately $452 billion of excess liquidity above the stressed average net outflows.outflow of approximately $485 billion, shown in the LCR table above.
Long-Term Liquidity Measurement: Net Stable Funding Ratio (NSFR)
As previously disclosed, the U.S. banking agencies adopted a final rule to assess the availability of a bank’s stable funding against a required level.
The final rule became effective on July 1, 2021, whilewith public disclosure requirements to reportof the ratio will occurNSFR required on a semiannual basis beginning June 30, 2023. Citi made the required disclosure and was in compliance with the final rule as of September 30, 2022.2023.
LoansSelect Balance Sheet Items
This section provides details of select liquidity-related assets and liabilities reported on Citigroup’s Consolidated Balance Sheet on an average and end-of-period basis.
Cash and Investments
The table below details the average loans, by business and/or segment, and theend-of-period Cash and due from banks, Deposits with banks (collectively cash) and Investment securities. Citi’s investment portfolio consists largely of highly liquid U.S. Treasury, U.S. agency and other sovereign bonds, with an aggregate duration of less than three years. At September 30, 2023, Citi’s EOP cash and Investment securities comprised approximately 32% of Citigroup’s total Citigroup end-of-period loans for each of the periods indicated:
| | | | | | | | | | | |
| In billions of dollars | 3Q22 | 2Q22 | 3Q21 |
| Personal Banking and Wealth Management | | | |
| U.S. Retail banking | $ | 36 | | $ | 34 | | $ | 34 | |
| U.S. Cards | 138 | | 133 | | 124 | |
| Global Wealth | 151 | | 150 | | 151 | |
| Total | $ | 325 | | $ | 317 | | $ | 309 | |
| Institutional Clients Group | | | |
| Services | $ | 82 | | $ | 85 | | $ | 76 | |
| Banking | 197 | | 199 | | 196 | |
| Markets | 12 | | 13 | | 17 | |
| Total | $ | 291 | | $ | 297 | | $ | 289 | |
Total Legacy Franchises(1) | $ | 39 | | $ | 43 | | $ | 71 | |
| Total Citigroup loans (AVG) | $ | 655 | | $ | 657 | | $ | 669 | |
| Total Citigroup loans (EOP) | $ | 646 | | $ | 657 | | $ | 665 | |
(1)See footnote 2 to the table in “Credit Risk—Consumer Credit—Consumer Credit Portfolio” above.assets:
End-of-period loans decreased 3% year-over-year, largely driven by the impact of foreign exchange translation and lower balances in Legacy Franchises. End-of-period loans declined 2% sequentially.
On an average basis, loans declined 2% year-over-year and were largely unchanged sequentially. The year-over-year decline was primarily due to the impact of foreign exchange translation and lower balances in Legacy Franchises, which more than offset growth inboth PBWM and ICG. The decline in Legacy Franchises primarily reflected the reclassification of loans to Other assets to reflect held-for-sale accounting as a result of the signing of sale agreements for consumer franchises in Asia and EMEA, as well as the impact of the Korea wind-down. PBWM average loans increased 5% year-over-year, primarily driven by Branded cards and Retail services. ICG average loans increased 1% year-over-year, largely driven by trade finance in TTS. | | | | | | | | | | | |
| In billions of dollars | 3Q23 | 2Q23 | 3Q22 |
| Cash and due from banks | $ | 27 | | $ | 28 | | $ | 32 | |
| Deposits with banks | 260 | | 310 | | 256 | |
| Investment securities | 509 | | 508 | | 513 | |
| Total Citigroup cash and Investment securities (AVG) | $ | 796 | | $ | 846 | | $ | 801 | |
| Total Citigroup cash and Investment securities (EOP) | $ | 763 | | $ | 804 | | $ | 808 | |
Deposits
The table below details the average deposits, by business and/or segment, and the total Citigroup end-of-period deposits for each of the periods indicated:
| | In billions of dollars | In billions of dollars | 3Q22 | 2Q22 | 3Q21 | In billions of dollars | 3Q23 | 2Q23 | 3Q22 |
| Personal Banking and Wealth Management | Personal Banking and Wealth Management | | Personal Banking and Wealth Management | |
| U.S. Personal Banking | U.S. Personal Banking | $ | 115 | | $ | 116 | | $ | 114 | | U.S. Personal Banking | $ | 110 | | $ | 113 | | $ | 115 | |
| Global Wealth | Global Wealth | 313 | | 319 | | 310 | | Global Wealth | 311 | | 318 | | 313 | |
| Total | Total | $ | 428 | | $ | 435 | | $ | 424 | | Total | $ | 421 | | $ | 431 | | $ | 428 | |
| Institutional Clients Group | Institutional Clients Group | | Institutional Clients Group | |
| TTS | TTS | $ | 664 | | $ | 665 | | $ | 668 | | TTS | $ | 676 | | $ | 688 | | $ | 664 | |
| Securities services | Securities services | 131 | | 137 | | 135 | | Securities services | 120 | | 125 | | 131 | |
| Markets | 22 | | 28 | | 28 | | |
| Markets and Banking | | Markets and Banking | 25 | | 24 | | 22 | |
| Total | Total | $ | 817 | | $ | 830 | | $ | 831 | | Total | $ | 821 | | $ | 837 | | $ | 817 | |
Legacy Franchises(1) | Legacy Franchises(1) | $ | 50 | | $ | 51 | | $ | 80 | | Legacy Franchises(1) | $ | 52 | | $ | 51 | | $ | 50 | |
| Corporate/Other | Corporate/Other | $ | 21 | | $ | 7 | | $ | 8 | | Corporate/Other | $ | 21 | | $ | 19 | | $ | 21 | |
| Total Citigroup deposits (AVG) | Total Citigroup deposits (AVG) | $ | 1,316 | | $ | 1,323 | | $ | 1,343 | | Total Citigroup deposits (AVG) | $ | 1,315 | | $ | 1,338 | | $ | 1,316 | |
| Total Citigroup deposits (EOP) | Total Citigroup deposits (EOP) | $ | 1,306 | | $ | 1,322 | | $ | 1,348 | | Total Citigroup deposits (EOP) | $ | 1,274 | | $ | 1,320 | | $ | 1,306 | |
(1)See footnote 2 to the table in “Credit Risk—Consumer Credit—Consumer Credit Portfolio” above.
Citi’s deposit base is spread across a diversified set of countries, industries, clients and currencies.
End-of-period deposits decreased 3% year-over-year, largely driven by the impactdue to a reduction in Services, reflecting monetary tightening, a shift of foreign exchange translationdeposits to higher-yielding investments in Global Wealth and lower balancesa reduction of institutional certificates of deposit in Legacy Franchises.Corporate/Other. End-of-period deposits decreased 1% sequentially.4% sequentially, driven by
On an average basis, deposits declined 2% year-over-yearICG, PBWM and were largely unchanged sequentially. The year-over-year decline primarily reflected the impact of foreign exchange translation and a decline in Legacy Franchises, partially offset by growth in Corporate/Other.
The decline in Legacy Franchises was due to the impactmajority of held-for-sale accounting asCiti’s $1.3 trillion of end-of-period deposits are institutional (approximately $782 billion), and span approximately 90 countries. A large majority of these institutional deposits are within TTS, and of these, approximately 80% are from clients that use all three TTS integrated services: payments and collections, liquidity management and working capital solutions. In addition, nearly 80% of TTS deposits are from clients that have a resultgreater than 15-year relationship with Citi. On an average basis, TTS grew deposits year-over-year at a faster rate than total Citi. Citi also has a strong consumer and wealth deposit base, with $416 billion of the signing of sale agreements for consumer franchises in Asia and EMEA. ICG average deposits declined 2% year-over-year, driven by decreases in TTS, Securities services and Markets, largely reflecting the impact of foreign exchange translation. PBWM average deposits increased 1% year-over-year, driven by modest growth in both U.S. Personal Banking and Global Wealth. Corporate/Other averageWealth end-of-period deposits, increased $13 billion year-over-year due towhich are diversified across the issuancePrivate bank, Citigold, Retail banking and Wealth at Work. As of institutional certificatesAugust 2023, approximately 80% of U.S. Citigold deposit asbalances are with clients who have been with Citi continues to diversify its funding profile.for more than 10 years and approximately 60% of Private bank ultra-high-net-worth deposit balances are with clients who have been with Citi for more than 10 years. U.S. Personal Banking deposits are spread across six core urban centers.
Long-Term Debt
Weighted Average Maturity (WAM)
The weighted-average maturityfollowing table presents Citigroup and its affiliates’
(including Citibank) WAM of unsecured long-term debt issued by Citigroup and its affiliates (including Citibank) with a remaining life greater than one year was approximately 7.8 years as of September 30, 2022, compared to 8.6 years as of the prior year and 8.0 years as of the prior quarter. year:
| | | | | | | | | | | |
| WAM in years | Sept. 30, 2023 | Jun. 30, 2023 | Sept. 30, 2022 |
| Unsecured debt | 7.4 | | 7.7 | | 7.8 | |
| Non-bank benchmark debt | 7.1 | | 7.3 | | 7.4 | |
| Customer-related debt | 8.2 | | 8.2 | | 8.6 | |
| TLAC-eligible debt | 8.7 | | 8.9 | | 9.1 | |
The weighted-average maturityWAM is calculated based on the contractual maturity of each security. For securities that are redeemable prior to maturity atwhere the option ofis not held by the holder,issuer, the weighted-average maturityWAM is calculated based on the earliest date an option becomes exercisable.
Citi’s long-term debt outstanding at the Citigroup parent company includes benchmark senior and subordinated debt and what Citi refers to as customer-related debt, consisting of structured notes, such as equity- and credit-linked notes, as well as non-structured notes. Citi’s issuance of customer-related debt is generally driven by customer demand and complements benchmark debt issuance as a source of funding for Citi’s non-bank entities. Citi’s long-term debt at the bank includes bank notes, FHLB advances and securitizations.
Long-Term Debt Outstanding
Citi’s long-term debt outstanding at the Citigroup parent company includes benchmark senior and subordinated debt and what Citi refers to as customer-related debt, consisting of structured notes, such as equity- and credit-linked notes, as well as non-structured notes. Citi’s issuance of customer-related debt is generally driven by customer demand and complements benchmark debt issuance as a source of funding for Citi’s non-bank entities. Citi’s long-term debt at the bank includes bank notes, FHLB advances and securitizations.
The following table presents Citi’s end-of-period total long-term debt outstanding for each of the dates indicated:
| | In billions of dollars | In billions of dollars | Sept. 30, 2022 | Jun. 30, 2022 | Sept. 30, 2021 | In billions of dollars | Sept. 30, 2023 | Jun. 30, 2023 | Sept. 30, 2022 |
Non-bank(1) | Non-bank(1) | | Non-bank(1) | |
| Benchmark debt: | Benchmark debt: | | Benchmark debt: | |
| Senior debt | Senior debt | $ | 112.7 | | $ | 120.3 | | $ | 123.9 | | Senior debt | $ | 110.3 | | $ | 111.1 | | $ | 112.7 | |
| Subordinated debt | Subordinated debt | 22.4 | | 24.0 | | 26.0 | | Subordinated debt | 24.5 | | 24.5 | | 22.4 | |
| Trust preferred | Trust preferred | 1.6 | | 1.6 | | 1.7 | | Trust preferred | 1.6 | | 1.6 | | 1.6 | |
| Customer-related debt | Customer-related debt | 86.9 | | 84.9 | | 74.7 | | Customer-related debt | 106.4 | | 110.3 | | 86.9 | |
Local country and other(2) | Local country and other(2) | 7.0 | | 7.8 | | 7.2 | | Local country and other(2) | 8.5 | | 7.9 | | 7.0 | |
| Total non-bank | Total non-bank | $ | 230.6 | | $ | 238.6 | | $ | 233.5 | | Total non-bank | $ | 251.3 | | $ | 255.4 | | $ | 230.6 | |
| Bank | Bank | | Bank | |
| FHLB borrowings | FHLB borrowings | $ | 7.3 | | $ | 2.3 | | $ | 5.8 | | FHLB borrowings | $ | 8.5 | | $ | 7.5 | | $ | 7.3 | |
Securitizations(3) | Securitizations(3) | 8.4 | | 9.5 | | 11.0 | | Securitizations(3) | 5.2 | | 5.5 | | 8.4 | |
| Citibank benchmark senior debt | Citibank benchmark senior debt | 2.5 | | 2.6 | | 3.6 | | Citibank benchmark senior debt | 7.6 | | 2.6 | | 2.5 | |
Local country and other(2) | Local country and other(2) | 4.3 | | 4.4 | | 4.3 | | Local country and other(2) | 3.2 | | 3.5 | | 4.3 | |
| Total bank | Total bank | $ | 22.5 | | $ | 18.8 | | $ | 24.7 | | Total bank | $ | 24.5 | | $ | 19.1 | | $ | 22.5 | |
| Total long-term debt | Total long-term debt | $ | 253.1 | | $ | 257.4 | | $ | 258.2 | | Total long-term debt | $ | 275.8 | | $ | 274.5 | | $ | 253.1 | |
Note: Amounts represent the current value of long-term debt on Citi’s Consolidated Balance Sheet that, for certain debt instruments, includes consideration of fair value, hedging impacts and unamortized discounts and premiums.
(1)Non-bank includes long-term debt issued to third parties by the parent holding company (Citigroup) and Citi’s non-bank subsidiaries (including
broker-dealer subsidiaries) that are consolidated into Citigroup. As of September 30, 2022,2023, non-bank included $71.4$90.6 billion of long-term debt issued by Citi’s broker-dealer and other subsidiaries that are consolidated into Citigroup. Certain Citigroup consolidated hedging activities are also included in this line.
(2)Local country and other includes debt issued by Citi’s affiliates in support of their local operations. Within non-bank, certain secured financing is also included.
(3)Predominantly credit card securitizations, primarily backed by Branded cards receivables.
Citi’s total long-term debt outstanding declined 2%increased 9% year-over-year, as declines in unsecured benchmark debt at both the bank and non-banking entities, as well as securitizations at the bank, were partially offsetlargely driven by the issuance of customer-related debt at the non-bank entities. Sequentially, long-termentities, as well as increased senior benchmark debt outstanding declined 2%, largely drivenand FHLB borrowings at the bank. The increase was partially offset by a decline in senior benchmark debt at the non-bank entities, partiallyas well as lower securitizations at the bank. Sequentially, long-term debt outstanding was largely unchanged, reflecting a decline in customer-related debt at the non-bank, offset by an increase in FHLB borrowingssenior benchmark debt at the bank.
As part of its liability management, Citi has considered, and may continue to consider, opportunities to redeem or repurchase its long-term debt pursuant to open market purchases, tender offers or other means. Such redemptions and repurchases help reduce Citi’s overall funding costs. During the third quarter of 2022,2023, Citi redeemed or repurchased an aggregate of approximately $9.8$5.7 billion of its outstanding long-term debt.
Long-Term Debt Issuances and Maturities
The table below details Citi’s long-term debt issuances and maturities (including repurchases and redemptions) during the periods presented:
| | | | 3Q22 | 2Q22 | 3Q21 | | 3Q23 | 2Q23 | 3Q22 |
| In billions of dollars | In billions of dollars | Maturities | Issuances | Maturities | Issuances | Maturities | Issuances | In billions of dollars | Maturities | Issuances | Maturities | Issuances | Maturities | Issuances |
| Non-bank | Non-bank | | | | | | Non-bank | | | | | |
| Benchmark debt: | Benchmark debt: | | | | | | Benchmark debt: | | | | | |
| Senior debt | Senior debt | $ | 7.4 | | $ | 4.7 | | $ | 3.5 | | $ | 6.0 | | $ | 2.8 | | $ | 0.3 | | Senior debt | $ | — | | $ | — | | $ | 5.3 | | $ | — | | $ | 7.4 | | $ | 4.7 | |
| Subordinated debt | Subordinated debt | 0.9 | | — | | — | | — | | — | | — | | Subordinated debt | — | | — | | 1.3 | | 3.2 | | 0.9 | | — | |
| Trust preferred | Trust preferred | — | | — | | — | | — | | — | | — | | Trust preferred | — | | — | | — | | — | | — | | — | |
| Customer-related debt | Customer-related debt | 7.5 | | 14.5 | | 5.0 | | 21.8 | | 6.9 | | 9.8 | | Customer-related debt | 11.6 | | 11.2 | | 12.5 | | 10.6 | | 7.5 | | 14.5 | |
| Local country and other | Local country and other | 1.4 | | 0.8 | | 0.3 | | 0.4 | | 0.6 | | 1.3 | | Local country and other | 0.6 | | 1.0 | | 0.9 | | 0.6 | | 1.4 | | 0.8 | |
| Total non-bank | Total non-bank | $ | 17.2 | | $ | 20.0 | | $ | 8.8 | | $ | 28.2 | | $ | 10.3 | | $ | 11.4 | | Total non-bank | $ | 12.2 | | $ | 12.2 | | $ | 20.0 | | $ | 14.4 | | $ | 17.2 | | $ | 20.0 | |
| Bank | Bank | | | | | | Bank | | | | | |
| FHLB borrowings | FHLB borrowings | $ | — | | $ | 5.0 | | $ | 1.0 | | $ | 2.3 | | $ | 3.8 | | $ | — | | FHLB borrowings | $ | 1.0 | | $ | 2.0 | | $ | 2.3 | | $ | 2.5 | | $ | — | | $ | 5.0 | |
| Securitizations | Securitizations | 1.1 | | — | | — | | — | | — | | — | | Securitizations | 0.3 | | — | | 1.1 | | — | | 1.1 | | — | |
| Citibank benchmark senior debt | Citibank benchmark senior debt | — | | — | | 0.9 | | — | | — | | — | | Citibank benchmark senior debt | — | | 5.0 | | — | | — | | — | | — | |
| Local country and other | Local country and other | 0.3 | | 0.1 | | 0.6 | | 0.1 | | 0.5 | | 1.0 | | Local country and other | 0.9 | | 0.7 | | 0.1 | | — | | 0.3 | | 0.1 | |
| Total bank | Total bank | $ | 1.4 | | $ | 5.1 | | $ | 2.5 | | $ | 2.4 | | $ | 4.3 | | $ | 1.0 | | Total bank | $ | 2.2 | | $ | 7.7 | | $ | 3.5 | | $ | 2.5 | | $ | 1.4 | | $ | 5.1 | |
| Total | Total | $ | 18.6 | | $ | 25.1 | | $ | 11.3 | | $ | 30.6 | | $ | 14.6 | | $ | 12.4 | | Total | $ | 14.4 | | $ | 19.9 | | $ | 23.5 | | $ | 16.9 | | $ | 18.6 | | $ | 25.1 | |
The table below showsdetails Citi’s aggregate long-term debt maturities (including repurchases and redemptions) year-to-date in 2022,2023, as well as its aggregate expected remaining long-term debt maturities by year as of September 30, 2022:2023:
| | | | 2022 YTD | Maturities | | 3Q23 YTD | Maturities |
| In billions of dollars | In billions of dollars | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | Total | In billions of dollars | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | Total |
| Non-bank | Non-bank | | | | | Non-bank | | | | |
| Benchmark debt: | Benchmark debt: | | | | | Benchmark debt: | | | | |
| Senior debt | Senior debt | $ | 15.3 | | $ | — | | $ | 4.6 | | $ | 10.3 | | $ | 11.7 | | $ | 22.9 | | $ | 6.7 | | $ | 56.5 | | $ | 112.7 | | Senior debt | $ | 7.0 | | $ | 3.2 | | $ | 5.4 | | $ | 11.9 | | $ | 23.5 | | $ | 6.9 | | $ | 14.7 | | $ | 44.7 | | $ | 110.3 | |
| Subordinated debt | Subordinated debt | 0.9 | | — | | 1.2 | | 0.9 | | 4.8 | | 2.3 | | 3.6 | | 9.6 | | 22.4 | | Subordinated debt | 1.3 | | — | | 0.9 | | 4.9 | | 2.3 | | 3.6 | | 2.0 | | 10.8 | | 24.5 | |
| Trust preferred | Trust preferred | 0.1 | | — | | — | | — | | — | | — | | — | | 1.6 | | 1.6 | | Trust preferred | — | | — | | — | | — | | — | | — | | — | | 1.6 | | 1.6 | |
| Customer-related debt | Customer-related debt | 20.0 | | 2.8 | | 16.2 | | 13.1 | | 11.8 | | 5.3 | | 7.4 | | 30.3 | | 86.9 | | Customer-related debt | 33.1 | | 4.1 | | 25.1 | | 16.2 | | 9.5 | | 9.6 | | 7.2 | | 34.7 | | 106.4 | |
| Local country and other | Local country and other | 2.1 | | 0.3 | | 2.9 | | — | | — | | 0.7 | | — | | 3.1 | | 7.0 | | Local country and other | 1.9 | | 0.6 | | 1.0 | | 1.8 | | 0.6 | | — | | 1.0 | | 3.5 | | 8.5 | |
| Total non-bank | Total non-bank | $ | 38.4 | | $ | 3.1 | | $ | 24.9 | | $ | 24.3 | | $ | 28.3 | | $ | 31.2 | | $ | 17.7 | | $ | 101.1 | | $ | 230.6 | | Total non-bank | $ | 43.3 | | $ | 7.9 | | $ | 32.4 | | $ | 34.8 | | $ | 35.9 | | $ | 20.1 | | $ | 24.9 | | $ | 95.3 | | $ | 251.3 | |
| Bank | Bank | | | | | Bank | | | | |
| FHLB borrowings | FHLB borrowings | $ | 5.3 | | $ | — | | $ | 4.3 | | $ | 3.0 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 7.3 | | FHLB borrowings | $ | 3.3 | | $ | 1.0 | | $ | 5.0 | | $ | 2.5 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 8.5 | |
| Securitizations | Securitizations | 1.1 | | 0.8 | | 3.4 | | 1.3 | | 0.4 | | — | | 0.8 | | 1.7 | | 8.4 | | Securitizations | 2.4 | | — | | 1.2 | | 1.6 | | — | | 0.8 | | 1.0 | | 0.6 | | 5.2 | |
| Citibank benchmark senior debt | Citibank benchmark senior debt | 0.9 | | — | | — | | 2.5 | | — | | — | | — | | — | | 2.5 | | Citibank benchmark senior debt | — | | — | | 2.6 | | 2.5 | | — | | — | | 2.5 | | — | | 7.6 | |
| Local country and other | Local country and other | 1.3 | | 0.9 | | 0.6 | | 1.2 | | 0.2 | | 0.1 | | — | | 1.3 | | 4.3 | | Local country and other | 1.3 | | 0.1 | | 1.0 | | 0.2 | | 0.5 | | — | | — | | 1.4 | | 3.2 | |
| Total bank | Total bank | $ | 8.6 | | $ | 1.7 | | $ | 8.3 | | $ | 8.0 | | $ | 0.6 | | $ | 0.1 | | $ | 0.8 | | $ | 3.0 | | $ | 22.5 | | Total bank | $ | 7.0 | | $ | 1.1 | | $ | 9.8 | | $ | 6.8 | | $ | 0.5 | | $ | 0.8 | | $ | 3.5 | | $ | 2.0 | | $ | 24.5 | |
| Total long-term debt | Total long-term debt | $ | 47.0 | | $ | 4.8 | | $ | 33.2 | | $ | 32.3 | | $ | 28.9 | | $ | 31.3 | | $ | 18.5 | | $ | 104.1 | | $ | 253.1 | | Total long-term debt | $ | 50.3 | | $ | 9.0 | | $ | 42.2 | | $ | 41.6 | | $ | 36.4 | | $ | 20.9 | | $ | 28.4 | | $ | 97.3 | | $ | 275.8 | |
Secured Funding Transactions and Short-Term Borrowings
Citi supplements its primary sources of funding with short-term financings that generally include (i) secured funding transactions consisting of securities loaned or sold under agreements to repurchase, i.e., repos, and (ii) to a lesser extent, short-term borrowings consisting of commercial paper and borrowings from the FHLB and other market participants.
Secured Funding Transactions
Secured funding is primarily accessed through Citi’s broker-dealer subsidiaries, with a smaller portion executed through Citi’s bank entities to efficiently fund efficiently both (i) secured lending activity and (ii) a portion of the securities inventory held in the context of market making and customer activities. Citi also executes a smaller portion of its securedSecured funding transactions through its bank entities, which are typicallypredominantly collateralized by government debt securities. Generally, daily changes in the level of Citi’s secured funding are primarily due to fluctuations in secured lending activity in the matched book (as described below) and changes in securities inventory. In order to maintain reliable funding under a wide range of market conditions, Citi manages risks related to its secured funding by establishing secured funding limits and conducting daily stress tests that account for risks related to capacity, tenor, haircut, collateral type, counterparty and client actions.
Secured funding of $203$257 billion as of September 30, 2022 decreased 3% from the prior-year period and2023 increased 2% sequentially,27% year-over-year, largely driven by normal business activity. The average balance for secured funding was approximately $207 billion foradditional financing to support increases in trading-related assets within Citi’s broker-dealer subsidiaries. As of the quarter ended September 30, 2022.
2023, on an average basis, secured funding was $275 billion. The portion of secured funding in the broker-dealer subsidiaries that funds secured lending is commonly referred to as “matched book” activity. The majority of this activity and is primarily secured by high-quality liquid securities such as U.S. Treasury securities, U.S. agency securities and foreign government debt securities. Other secured funding“matched book” activity is secured by less liquid securities, including equity securities, corporate bonds and asset-backed securities, the tenor of which is generally equal to or longer than the tenor of the corresponding matched book assets.
The remainder As indicated above, the remaining portion of the secured funding activity in the broker-dealer subsidiaries servesis used to fund securities inventory held in the context of market making and customer activities. To maintain reliable funding under a wide range of market conditions, including under periods of stress, Citi manages these activities by taking into consideration the quality of the underlying collateral and establishing minimum required funding tenors. The weighted average maturity of Citi’s secured funding of less liquid securities inventory was greater than 110 days as of September 30, 2022.
Citi manages the risks in its secured funding by conducting daily stress tests to account for changes in capacity, tenor, haircut, collateral profile and client actions. In addition, Citi maintains counterparty diversification by establishing concentration triggers and assessing counterparty reliability and stability under stress. Citi generally sources secured funding from more than 150 counterparties.
Short-Term Borrowings
Citi’s short-term borrowings of $47$43 billion increased 60%as of the third quarter of 2023 decreased 9% year-over-year and 18% increased 7%sequentially, reflecting an increase in FHLB advances anddriven by higher commercial paper issuance, as Citi continues to diversify its funding profile (see Note 1617 for further information on Citigroup’s and its affiliates’ outstanding short-term borrowings).
Credit Ratings
The table below presents the ratings for Citigroup and Citibank as of September 30, 2023. While not included in the table below, the long-term and short-term ratings of Citigroup Global Markets Holdings Inc. (CGMHI) were A+/F1 at Fitch, A2/P-1 at Moody’s Investors Service and A/A-1 at S&P Global Ratings and A+/F1 at Fitch as of September 30, 2022.2023.
Ratings as of September 30, 20222023
| | | | | | | | | | | | | | | | | | | | |
| Citigroup Inc. | Citibank, N.A. |
| | Senior
debtLong-term | Commercial
paperShort-term | Outlook | Long-
term | Short-
term | Outlook |
| Fitch Ratings (Fitch) | A | F1 | Stable | A+ | F1 | Stable |
| Moody’s Investors Service (Moody’s) | A3 | P-2 | Stable | Aa3 | P-1 | Stable |
| S&P Global Ratings (S&P) | BBB+ | A-2 | Stable | A+ | A-1 | Stable |
Potential Impacts of Ratings Downgrades
Ratings downgrades by Fitch, Moody’s Fitch or S&P could negatively impact Citigroup’s and/or Citibank’s funding and liquidity due to reduced funding capacity, including derivative triggers, which could take the form of cash obligations and collateral requirements.
For additional information on the impact of credit rating changes on Citi and its applicable subsidiaries, see “Risk Factors—Liquidity Risks” and “Credit Ratings” in Citi’s 20212022 Form 10-K.
Citigroup Inc. and Citibank—Potential Derivative Triggers
As of September 30, 2022,2023, Citi estimates that a hypothetical one-notch downgrade of the senior debt/long-term rating of Citigroup Inc. across all three major rating agencies could impact Citigroup’s funding and liquidity due to derivative triggers by approximately $0.6$0.3 billion, compared to $0.5$0.4 billion as of June 30, 2022.2023. Other funding sources, such as secured financing transactions and other margin requirements, for which there are no explicit triggers, could also be adversely affected.
As of September 30, 2022,2023, Citi estimates that a hypothetical one-notch downgrade of the senior debt/long-term rating of Citibank across all three major rating agencies could impact Citibank’s funding and liquidity due to derivative triggers by approximately $0.8$0.4 billion, compared to $0.7$0.4 billion as of June 30, 2022.2023. Other funding sources, such as secured funding transactions and other margin requirements, for which there are no explicit triggers, could also be adversely impacted.
In total, as of September 30, 2022,2023, Citi estimates that a one-notch downgrade of Citigroup Inc. and Citibank across all three major rating agencies could result in increased aggregate cash obligations and collateral requirements of approximately $1.4$0.7 billion, compared to $1.2$0.8 billion as of June 30, 20222023 (see also Note 19). As detailed under “High-Quality Liquid Assets (HQLA)”Assets” above, Citigroup has various liquidity resources available to its bank and non-bank entities in part as a contingency for the potential events described above.
Citibank—Additional Potential Impacts
In addition to the above derivative triggers, Citi believes that a potential downgrade of Citibank’s senior debt/long-term rating across any of the three major rating agencies could also have an adverse impact on the commercial paper/short-term rating of Citibank. Citibank has provided liquidity commitments to consolidated asset-backed commercial paper conduits, primarily in the form of asset purchase agreements. As of September 30, 2022,2023, Citibank had liquidity commitments of approximately $11.0 billion to consolidated asset-backed commercial paper conduits, compared to $9.0 billion as ofwhich was largely unchanged from June 30, 20222023 (see Note 1820 for additional information).
In addition to the above-referenced liquidity resources of certain Citibank entities, Citibank could reduce the funding and liquidity risk, if any, of the potential downgrades described above through mitigating actions, including repricing or reducing certain commitments to commercial paper conduits. In the event of the potential downgrades described above, Citi believes that certain corporate customers could re-evaluatereevaluate their deposit relationships with Citibank. This re-evaluationreevaluation could result in clients adjusting their discretionary deposit levels or changing their depository institution, which could potentially reduce certain deposit levels at Citibank. However, Citi could choose to adjust pricing, offer alternative deposit products to its existing customers or seek to attract deposits from new customers, in addition to the mitigating actions referenced above.
MARKET RISK
Market risk arises from both Citi’s trading and non-trading
portfolios. For additional information on market risk and
market risk management at Citi, see “Market Risk—Overview” and “Risk Factors” in Citi’s 20212022 Form 10-K.
Market Risk of Non-Trading Portfolios
Market risk from non-trading portfolios stems predominantly from the potential impact of changes in interest rates and foreign exchange rates on Citi’s net interest income and on Citi’s Accumulated other comprehensive income (loss) (AOCI) from its investment securities portfolios. Market risk from non-trading portfolios also includes the potential impact of changes in foreign exchange rates on Citi’s capital invested in foreign currencies.
Banking Book Interest Rate Risk
For interest rate risk purposes, Citi’s non-trading portfolios are referred to as the Banking Book. Management of interest rate risk in the Banking Book is governed by Citi’s Non-Trading Market Risk Policy. Management’s Asset & Liability Committee (ALCO) establishes Citi’s risk appetite and related limits for interest rate risk in the Banking Book, which are subject to approval by Citigroup’s Board of Directors. Corporate Treasury is responsible for the day-to-day management of Citi’s Banking Book interest rate risk as well as periodically reviewing it with the ALCO. Citi’s Banking Book interest rate risk management is also subject to independent oversight from Treasury Risk Management, athe second line of defense team reporting to the Treasury Chief Risk Officer.
Changes in interest rates impact Citi’s net income, AOCI and CET1. These changes primarily affect Citi’s Banking Book through net interest income, due to a variety of risk factors, including:
•Differences in timing and amounts of the maturity or repricing of assets, liabilities and off-balance sheet instruments;
•Changes in the level and/or shape of interest rate curves;
•Client behavior in response to changes in interest raterates (e.g., mortgage prepayments, deposit betas); and
•Changes in the maturity of instruments resulting from changes in the interest rate environment.
As part of their ongoing activities, Citi’s businesses generate interest rate-sensitive positions from their client-facing products, such as loans and deposits. The component of this interest rate risk that can be hedged is transferred via Citi’s funds transfer pricing process to Corporate Treasury. Corporate Treasury uses various tools to manage the total interest rate risk position within the established risk appetite and target Citi’s desired risk profile, including its investment securities portfolio, company-issued debt and interest rate derivatives.
In addition, Citi uses multiple metrics to measure its Banking Book interest rate risk. Interest Rate Exposure (IRE)
is a key metric that analyzes the impact of a range of scenarios on Citi’s Banking Book net interest income and certain other interest rate-sensitive income versus a base case. IRE does not represent a forecast of Citi’s net interest income.
The scenarios, methodologies and assumptions used in this analysis are periodically evaluated and enhanced in response to changes in the market environment, changes in Citi’s balance sheet composition, enhancements in Citi’s modellingmodeling and other factors.
DuringSince the third quarter of 2022, Citi transitioned itshas employed enhanced IRE analysis, employing enhanced methodologies and changes to certain assumptions. The changes included, among other things, assumptions around the projected balance sheet and revisions to the treatment of certain business contributions (notably accrual positions in ICG’s Markets businesses). These changes resulted in a higher impact to Citi’s net interest income over a 12-month period (see the table below for details).period.
Under the enhanced methodology, Citi utilizes the most recent quarter-end balance sheet, assuming no changes to its composition and size over the forecasted horizon (holding the balance sheet static). The forecasts incorporate expectations and assumptions of deposit pricing, loan spreads and mortgage prepayment behavior implied by the interest rate curves in each scenario. The base case scenario reflects the market impliedmarket-implied forward interest rates, and sensitivity scenarios assume instantaneous shocks to the base case. The forecasts do not assume Citi takes any risk-mitigating actions in response to changes in the interest rate environment. Certain interest rates are subject to flooring assumptions in downward rate scenarios. Deposit pricing sensitivities (i.e., deposit betas), are informed by historical and expected behavior. Actual deposit pricing could differ from the assumptions used in these forecasts.
Citi’s IRE analysis primarily reflects the impacts from the following Banking Book assets and liabilities: loans, client deposits, Citi’s deposits with other banks, investment securities, long-term debt, any related interest rate hedges and the funds transfer pricing of positions in total trading and credit portfolio VAR.value at risk (VAR). It excludes impacts from any positions whichthat are included in total trading and credit portfolio VAR.
In addition to IRE, Citi analyzes economic value sensitivity (EVS) as a longer-term interest rate risk metric. EVS is a net present value (NPV)–based measure of the lifetime cash flows of Citi’s Banking Book. It estimates the interest rate sensitivity of the Banking Book’s economic value from longer-term assets being potentially funded with shorter-term liabilities, or vice versa. Citi manages EVS within risk limits approved by Citigroup’s Board of Directors that are aligned with Citi’s risk appetite.
Interest Rate Risk of Investment Portfolios—Impact on AOCI
Citi also measures the potential impacts of changes in interest rates on the value of its AOCI, which can in turn impact Citi’s common equity and tangible common equity. This will impact Citi’s Common Equity Tier 1CET1 and other regulatory capital ratios. Citi seeks to manage its exposure to changes in the market level of interest rates, while limiting the potential impact on its AOCI and regulatory capital position.
AOCI at risk is managed as part of the Company-wide interest rate risk position. AOCI at risk considers potential
changes in AOCI (and the corresponding impact on the Common Equity Tier 1CET1 Capital ratio) relative to Citi’s capital generation capacity.
Citi uses 100 basis point (bps) shocks in each scenario to reflect its net interest income sensitivity to unanticipated changes in market interest rates, as potential monetary policy decisions and changes in economic conditions may be reflected in current market-implied forward rates. The following table presents the 12-month estimated impact to Citi’s net interest income, AOCI and the Common Equity Tier 1CET1 Capital ratio, each assuming an unanticipated parallel instantaneous 100 basis point (bps)bps increase in interest rates:
| | | | | | | | | | | |
| In millions of dollars, except as otherwise noted | Sept. 30, 2022 | Jun. 30, 2022 | Sept. 30, 2021 |
| Parallel interest rate shock +100 bps | | | |
Interest rate exposure(1)(2) | | | |
| U.S. dollar | $ | 677 | | $ | 122 | | $ | 827 | |
| All other currencies | 1,483 | | 1,946 | | 1,623 | |
| Total | $ | 2,160 | | $ | 2,068 | | $ | 2,450 | |
| As a percentage of average interest-earning assets | 0.10 | % | 0.10 | % | 0.11 | % |
Estimated initial negative impact to AOCI (after-tax)(1) | $ | (969) | | $ | (2,522) | | $ | (4,914) | |
| Estimated initial impact on Common Equity Tier 1 Capital ratio (bps) | (9) | | (10) | | (30) | |
| | | | | | | | | | | |
| In millions of dollars, except as otherwise noted | Sept. 30, 2023 | Jun. 30, 2023 | Sept. 30, 2022 |
| Parallel interest rate shock +100 bps | | | |
Interest rate exposure(1) | | | |
| U.S. dollar | $ | 82 | | $ | (55) | | $ | 677 | |
| All other currencies | 1,214 | | 1,468 | | 1,483 | |
| Total | $ | 1,296 | | $ | 1,413 | | $ | 2,160 | |
| As a percentage of average interest-earning assets | 0.06 | % | 0.06 | % | 0.10 | % |
Estimated initial negative impact to AOCI (after-tax)(2) | $ | (807) | | $ | (1,416) | | $ | (969) | |
Estimated initial impact on CET1 Capital ratio (bps) from AOCI scenario | (12) | | (12) | | (9) | |
(1)Excludes trading book and fair value option banking book portfolios and replaces them with the associated transfer pricing.
(2)The estimated impact to Citi’s net interest income under the prior IRE methodology was $931 million, $1,025 million and $737 million for September 30, 2022, June 30, 2022 and September 30, 2021, respectively.
(3)Includes the effect of changes in interest rates on AOCI related to investment securities, cash flow hedges and pension liability adjustments.
The All other currencies of $1,214 million as of September 30, 2023 in the table above includes the impact from the following top five non-U.S. dollar currencies, which represents approximately 50% of the total non-U.S. dollar currency impact: approximately $0.2 billion from the Japanese yen, and approximately $0.1 billion each from the Singapore dollar, Swiss franc, Indian rupee and British pound sterling. These impacts per currency are generally in the same direction (estimated positive impact in the +100 bps shock scenario) and not offsetting.
Citi’s balance sheet is asset sensitive (assets reprice faster than liabilities), resulting in higher net interest income in increasing interest rate scenarios. The estimated impact to Citi’s net interest income in a 100 bps upward rate shock scenario as of the third quarter of 2022 increased modestly2023 decreased quarter-over-quarter and decreased year-over-year, primarily reflecting the net impact of lower expected gains due to U.S. dollar interest rate moves that have already been realized and changes in Citi’s balance sheet.deposit composition and levels, partially offset by hedging actions. At progressively higher interest rate levels, the marginal net interest income benefit is lower, as Citi assumes it will pass on a larger share of rate changes to depositors (i.e., higher betas), further reducing Citi’s IRE sensitivity. Currency-specific interest rate changes and balance sheet factors may drive quarter-to-quarter volatility in Citi’s estimated IRE.
In a 100 bps upward rate shock scenario, Citi expects that the $969 millionapproximate $0.8 billion initial negative impact to AOCI could potentially be offset in shareholders’ equity through the
expected recovery of the impact on AOCI through accretion of Citi’s investment portfolio and expected net interest income benefit over a period of approximately threefour months.
Scenario Analysis
The following table presents the estimated impact to Citi’s net interest income, AOCI and Common Equity Tier 1CET1 Capital ratio (on a fully implemented basis) under fivesix different scenarios of changes in interest raterates for the U.S. dollar and all other currencies in which Citi has invested capital as of September 30, 2022.2023. The 100 bps downward rate scenarios are impacted by the low level of interest rates in several countries and the assumption that market interest rates, as well as rates paid to depositors and charged to borrowers, do not fall below zero (i.e., the “flooring assumption”). The rate scenarios are also impacted by convexity related to mortgage products.
| | | | | | | | | | | | | | | | | |
| In millions of dollars, except as otherwise noted | Scenario 1 | Scenario 2 | Scenario 3 | Scenario 4 | Scenario 5 |
| Overnight rate change (bps) | 100 | | 100 | | — | | — | | (100) | |
| 10-year rate change (bps) | 100 | | — | | 100 | | (100) | | (100) | |
Interest rate exposure(1) | | | | | |
| U.S. dollar | $ | 677 | | $ | 443 | | $ | 211 | | $ | (304) | | $ | (824) | |
| All other currencies | 1,483 | | 1,280 | | 228 | | (205) | | (1,304) | |
| Total | $ | 2,160 | | $ | 1,723 | | $ | 439 | | $ | (509) | | $ | (2,128) | |
Estimated initial impact to AOCI (after-tax)(2) | $ | (969) | | $ | (862) | | $ | (175) | | $ | 99 | | $ | 927 | |
| Estimated initial impact to Common Equity Tier 1 Capital ratio (bps) | (9) | | (8) | | (2) | | 1 | | 9 | |
| | | | | | | | | | | | | | | | | | | | |
| In millions of dollars, except as otherwise noted | Scenario 1 | Scenario 2 | Scenario 3 | Scenario 4 | Scenario 5 | Scenario 6 |
| Overnight rate change (bps) | 100 | | 100 | | — | | — | | (100) | | (100) | |
| 10-year rate change (bps) | 100 | | — | | 100 | | (100) | | — | | (100) | |
| Interest rate exposure | | | | | | |
| U.S. dollar | $ | 82 | | $ | 16 | | $ | 56 | | $ | (83) | | $ | (504) | | $ | (608) | |
All other currencies(1) | 1,214 | | 1,034 | | 176 | | (179) | | (916) | | (1,081) | |
| Total | $ | 1,296 | | $ | 1,050 | | $ | 232 | | $ | (262) | | $ | (1,420) | | $ | (1,689) | |
Estimated initial impact to AOCI (after-tax)(2) | $ | (807) | | $ | (1,008) | | $ | 245 | | $ | (445) | | $ | 995 | | $ | 645 | |
Estimated initial impact to CET1 Capital ratio (bps) from AOCI scenario | (12) | | (8) | | (3) | | 2 | | 8 | | 11 | |
Note: Each scenario assumes that the rate change will occur instantaneously. Changes in interest rates for maturities between the overnight rate and the 10-year rate are interpolated. The interest rate exposure in the table above assumes no change in deposit size or mix from the baseline forecast included in the different interest scenarios presented. As a result, in higher interest rate scenarios, customer activity resulting in a shift from non-interest-bearing and low interest rate deposit products to higher-yielding deposits would reduce the expected benefit to net interest income. Conversely, in lower interest rate scenarios, customer activity resulting in a shift from higher-yielding deposits to non-interest-bearing and low interest rate deposit products would reduce the expected decrease to net interest income.
(1)The estimatedScenario 1 includes the impact to Citi’s net interest income underfrom the previous IRE measure is $931 million, $961 million, $63 million, $(59) millionfollowing top five non-U.S. dollar currencies, which represents approximately 50% of the total non-U.S. dollar currency impact: approximately $0.2 billion from the Japanese yen, and $(1,016) million for Scenarios 1 through 5, respectively.approximately $0.1 billion each from the Singapore dollar, Swiss franc, Indian rupee and British pound sterling. These impacts per currency are generally in the same direction (estimated positive impact in the +100 bps shock scenario) and not offsetting.
(2)Includes the effect of changes in interest rates on AOCI related to investment securities, cash flow hedges and pension liability adjustments.
As shown in the table above, the estimated impact to Citi’s net interest income remainsis larger under Scenario 2 than Scenario 3, as Citi’s Banking Book has relatively higher interest rate exposure to the short end of the yield curve. For U.S. dollars, exposure to downward rate shocks is larger in magnitude than to upward rate shocks. This is because of the lower benefit to net interest income from Citi’s deposit base at higher rate levels, as well as the prepayment effects on mortgage loans and mortgage-backed securities. For othernon-U.S. dollar currencies, exposure to downward rate shocks is smaller in magnitude as a result of Citi’s flooring assumption, given low rate levels for certain non-U.S. dollar currencies.
The magnitude of the impact to AOCI is greater under Scenario 2 as compared to Scenario 3. This is because the combination of changes to Citi’s investment portfolio, partially offset by changes related to Citi’s pension liabilities, results in a net position that is more sensitive to rates at shorter- and intermediate-term maturities.
Changes in Foreign Exchange Rates—Impacts on AOCI and Capital
As of September 30, 2022,2023, Citi estimates that an unanticipated parallel instantaneous 5% appreciation of the U.S. dollar against all of the other currencies in which Citi has invested capital could reduce Citi’s tangible common equity (TCE) by approximately $1.6$1.7 billion, or 0.97%0.96%, as a result of changes to Citi’s foreign currency translation adjustmentCTA in AOCI, net of hedges. This impact would be primarily due to changes in the value of the Mexican peso, Euro Singapore dollar and Indian rupee.
This impact is also before any mitigating actions Citi may take, including ongoing management of its foreign currency
translation exposure. Specifically, as currency movements change the value of Citi’s net investments in foreign currency-denominated capital, these movements also change the value of Citi’s risk-weighted assets denominated in those currencies.
This, coupled with Citi’s foreign currency hedging strategies, such as foreign currency borrowings, foreign currency forwards and other currency hedging instruments, lessens the impact of foreign currency movements on Citi’s Common Equity Tier 1CET1 Capital ratio. Changes in these hedging strategies, as well as hedging costs, divestitures and tax impacts, can further affect the actual impact of changes in foreign exchange rates on Citi’s capital as compared to an unanticipated parallel shock, as described above.
The effect of Citi’s ongoing management strategies with respect to quarterly changes in foreign exchange rates, and the quarterly impact of these changes on Citi’s TCE and Common Equity Tier 1CET1 Capital ratio, are shown in the table below. See Note 1718 for additional information on the changes in AOCI.
| | | | | | | | | | | |
| For the quarter ended |
| In millions of dollars, except as otherwise noted | Sept. 30, 2022 | Jun. 30, 2022 | Sept. 30, 2021 |
Change in FX spot rate(1) | (4.5) | % | (4.9) | % | (2.7) | % |
| Change in TCE due to FX translation, net of hedges | $ | (2,121) | | $ | (1,335) | | $ | (1,042) | |
| As a percentage of TCE | (1.4) | % | (0.9) | % | (0.7) | % |
Estimated impact to Common Equity Tier 1 Capital ratio (on a fully implemented basis)
due to changes in FX translation, net of hedges (bps) | (2) | | 5 | | (1) | |
| | | | | | | | | | | |
| For the quarter ended |
| In millions of dollars, except as otherwise noted | Sept. 30, 2023 | Jun. 30, 2023 | Sept. 30, 2022 |
Change in FX spot rate(1) | (2.5) | % | (0.2) | % | (4.5) | % |
| Change in TCE due to FX translation, net of hedges | $ | (1,314) | | $ | (98) | | $ | (2,121) | |
| As a percentage of TCE | (0.8) | % | (0.1) | % | (1.4) | % |
Estimated impact to CET1 Capital ratio (on a fully implemented basis)
due to changes in FX translation, net of hedges (bps) | (1) | | — | | (2) | |
(1) FX spot rate change is a weighted average based on Citi’s quarterly average GAAP capital exposure to foreign countries.
Interest Revenue/Expense and Net Interest Margin (NIM)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| 3rd Qtr. | | 2nd Qtr. | | 3rd Qtr. | | Change |
| In millions of dollars, except as otherwise noted | 2022 | | 2022 | | 2021 | | 3Q22 vs. 3Q21 |
Interest revenue(1) | $ | 19,965 | | | $ | 15,674 | | | $ | 12,696 | | | 57 | % | |
Interest expense(2) | 7,356 | | | 3,666 | | | 1,959 | | | 275 | | |
Net interest income, taxable equivalent basis(1) | $ | 12,609 | | | $ | 12,008 | | | $ | 10,737 | | | 17 | % | |
Interest revenue—average rate(3) | 3.65 | % | | 2.92 | % | | 2.35 | % | | 130 | | bps |
| Interest expense—average rate | 1.68 | | | 0.85 | | | 0.45 | | | 123 | | bps |
Net interest margin(3)(4) | 2.31 | | | 2.24 | | | 1.99 | | | 32 | | bps |
| Interest-rate benchmarks | | | | | | | | |
| Two-year U.S. Treasury note—average rate | 3.38 | % | | 2.72 | % | | 0.23 | % | | 315 | | bps |
| 10-year U.S. Treasury note—average rate | 3.10 | | | 2.93 | | | 1.32 | | | 178 | | bps |
| 10-year vs. two-year spread | (28) | | bps | 21 | | bps | 109 | | bps | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| 3rd Qtr. | | 2nd Qtr. | | 3rd Qtr. | | Change |
| In millions of dollars, except as otherwise noted | 2023 | | 2023 | | 2022 | | 3Q23 vs. 3Q22 |
Interest revenue(1) | $ | 34,860 | | | $ | 32,660 | | | $ | 19,965 | | | 75 | % | |
Interest expense(2) | 21,009 | | | 18,747 | | | 7,356 | | | 186 | | |
Net interest income, taxable equivalent basis(1) | $ | 13,851 | | | $ | 13,913 | | | $ | 12,609 | | | 10 | % | |
Interest revenue—average rate(3) | 6.27 | % | | 5.82 | % | | 3.65 | % | | 262 | | bps |
| Interest expense—average rate | 4.67 | | | 4.15 | | | 1.68 | | | 299 | | bps |
Net interest margin(3)(4) | 2.49 | | | 2.48 | | | 2.31 | | | 18 | | bps |
| Interest rate benchmarks | | | | | | | | |
| Two-year U.S. Treasury note—average rate | 4.92 | % | | 4.26 | % | | 3.38 | % | | 154 | | bps |
| 10-year U.S. Treasury note—average rate | 4.15 | | | 3.60 | | | 3.10 | | | 105 | | bps |
| 10-year vs. two-year spread | (77) | | bps | (66) | | bps | (28) | | bps | | |
(1)Interest revenue and Net interest income include the taxable equivalent adjustments primarily related to the tax-exempt bond portfolio and certain tax-advantaged loan programs (based on the U.S. federal statutory tax rate of 21%) of $46$23 million, $44$13 million and $46 million for the three months ended September 30, 2022,2023, June 30, 20222023 and September 30, 2021,2022, respectively.
(2)Interest expense associated with certain hybrid financial instruments, which are classified as Long-term debt and accounted for at fair value, is reported together with any changes in fair value as part of Principal transactions in the Consolidated Statement of Income and is therefore not reflected in Interest expense in the table above.
(3)The average rate on interest revenue and net interest margin reflects the taxable equivalent gross-up adjustment. See footnote 1 above.
(4)Citi’s NIM is calculated by dividing net interest income by average interest-earning assets.
Non-ICG Markets Net Interest Income
| | | | | | | | | | | | | | |
| 3rd Qtr. | 2nd Qtr. | 3rd Qtr. | Change |
| In millions of dollars | 2022 | 2022 | 2021 | 3Q22 vs. 3Q21 |
Net interest income (NII)—taxable equivalent basis(1) per above | $ | 12,609 | | $ | 12,008 | | $ | 10,737 | | 17 | % |
ICG Markets NII—taxable equivalent basis(1) | 1,230 | | 1,386 | | 1,266 | | (3) | |
Non-ICG Markets NII—taxable equivalent basis(1) | $ | 11,379 | | $ | 10,622 | | $ | 9,471 | | 20 | % |
| | | | | | | | | | | | | | |
| 3rd Qtr. | 2nd Qtr. | 3rd Qtr. | Change |
| In millions of dollars | 2023 | 2023 | 2022 | 3Q23 vs. 3Q22 |
Net interest income—taxable equivalent basis(1) per above | $ | 13,851 | | $ | 13,913 | | $ | 12,609 | | 10 | % |
ICG Markets net interest income—taxable equivalent basis(1) | 1,578 | | 1,983 | | 1,230 | | 28 | |
Non-ICG Markets net interest income—taxable equivalent basis(1) | $ | 12,273 | | $ | 11,930 | | $ | 11,379 | | 8 | % |
(1)Interest revenue and Net interest income include the taxable equivalent adjustments discussed in the table above.
Citi’s net interest income in the third quarter of 20222023 increased 18%10% to $12.6$13.8 billion versus the prior-year period. As presented in the table above, Citi’s net interest income on a taxable equivalent basis also increased 17%10% year-over-year, or $1.9 billion,$1.2 billion. The increase was driven by higher net interest income in non-ICG Markets, while net interest income inwhich increased 8%, and ICG Markets, (Fixed income markets and Equity markets) declined 3%which increased 28%. The increase in net interest income in non-ICG Markets net interest income primarily reflected higher interest rates and growth in U.S. cards interest-earning balances, from cards, improved deposit spreadspartially offset by a reduction in Servicesnet interest income due to the exited markets and higher income from Citi’s investment portfolio.continued wind-downs in Legacy Franchises. The declineincrease in ICGMarkets net interest income largely reflectedwas primarily driven by higher interest rates as well as a change in the mix of trading positions in support of client activity.
Citi’s net interest margin was 2.31%2.49% on a taxable equivalent basis in the third quarter of 2022,2023, an increase of 71 basis pointspoint from the prior quarter, primarily driven by the impact ofbeneficial balance sheet mix changes and higher interest rates, and improved deposit spreadslargely offset by the absence of the benefit of dividend seasonality in Services.
Additional Interest Rate Details
Average Balances and Interest Rates—Assets(1)(2)(3)
Taxable Equivalent Basis
| | Quarterly—Assets | Quarterly—Assets | Average volume | Interest revenue | % Average rate | Quarterly—Assets | Average balance | Interest revenue | % Average rate |
| | 3rd Qtr. | 2nd Qtr. | 3rd Qtr. | 3rd Qtr. | 2nd Qtr. | 3rd Qtr. | 3rd Qtr. | 2nd Qtr. | 3rd Qtr. | | 3rd Qtr. | 2nd Qtr. | 3rd Qtr. | 3rd Qtr. | 2nd Qtr. | 3rd Qtr. | 3rd Qtr. | 2nd Qtr. | 3rd Qtr. |
| In millions of dollars, except rates | In millions of dollars, except rates | 2022 | 2022 | 2021 | 2022 | 2022 | 2021 | 2022 | 2022 | 2021 | In millions of dollars, except rates | 2023 | 2023 | 2022 | 2023 | 2023 | 2022 | 2023 | 2023 | 2022 |
Deposits with banks(4) | Deposits with banks(4) | $ | 256,444 | | $ | 227,377 | | $ | 294,160 | | $ | 1,218 | | $ | 658 | | $ | 147 | | 1.88 | % | 1.16 | % | 0.20 | % | Deposits with banks(4) | $ | 260,159 | | $ | 310,047 | | $ | 256,444 | | $ | 2,645 | | $ | 3,049 | | $ | 1,218 | | 4.03 | % | 3.94 | % | 1.88 | % |
Securities borrowed and purchased under agreements to resell(5) | Securities borrowed and purchased under agreements to resell(5) | | | | | | Securities borrowed and purchased under agreements to resell(5) | | | | | |
| In U.S. offices | In U.S. offices | $ | 200,951 | | $ | 190,065 | | $ | 176,926 | | $ | 1,285 | | $ | 458 | | $ | 70 | | 2.54 | % | 0.97 | % | 0.16 | % | In U.S. offices | $ | 165,557 | | $ | 182,676 | | $ | 200,951 | | $ | 3,577 | | $ | 3,227 | | $ | 1,285 | | 8.57 | % | 7.09 | % | 2.54 | % |
In offices outside the U.S.(4) | In offices outside the U.S.(4) | 160,768 | | 159,455 | | 146,257 | | 891 | | 347 | | 194 | | 2.20 | | 0.87 | | 0.53 | | In offices outside the U.S.(4) | 187,051 | | 183,028 | | 160,768 | | 3,786 | | 3,027 | | 891 | | 8.03 | | 6.63 | | 2.20 | |
| Total | Total | $ | 361,719 | | $ | 349,520 | | $ | 323,183 | | $ | 2,176 | | $ | 805 | | $ | 264 | | 2.39 | % | 0.92 | % | 0.32 | % | Total | $ | 352,608 | | $ | 365,704 | | $ | 361,719 | | $ | 7,363 | | $ | 6,254 | | $ | 2,176 | | 8.28 | % | 6.86 | % | 2.39 | % |
Trading account assets(6)(7) | Trading account assets(6)(7) | | | | | | Trading account assets(6)(7) | | | | | |
| In U.S. offices | In U.S. offices | $ | 143,102 | | $ | 139,087 | | $ | 133,649 | | $ | 1,196 | | $ | 632 | | $ | 665 | | 3.32 | % | 1.82 | % | 1.97 | % | In U.S. offices | $ | 194,531 | | $ | 180,214 | | $ | 143,102 | | $ | 2,334 | | $ | 2,071 | | $ | 1,196 | | 4.76 | % | 4.61 | % | 3.32 | % |
In offices outside the U.S.(4) | In offices outside the U.S.(4) | 129,894 | | 136,850 | | 154,993 | | 795 | | 1,030 | | 620 | | 2.43 | | 3.02 | | 1.59 | | In offices outside the U.S.(4) | 151,333 | | 149,015 | | 129,894 | | 1,559 | | 1,681 | | 795 | | 4.09 | | 4.52 | | 2.43 | |
| Total | Total | $ | 272,996 | | $ | 275,937 | | $ | 288,642 | | $ | 1,991 | | $ | 1,662 | | $ | 1,285 | | 2.89 | % | 2.42 | % | 1.77 | % | Total | $ | 345,864 | | $ | 329,229 | | $ | 272,996 | | $ | 3,893 | | $ | 3,752 | | $ | 1,991 | | 4.47 | % | 4.57 | % | 2.89 | % |
| Investments | Investments | | | | | | Investments | | | | | |
| In U.S. offices | In U.S. offices | | | | | | In U.S. offices | | | | | |
| Taxable | Taxable | $ | 355,293 | | $ | 357,249 | | $ | 332,337 | | $ | 1,521 | | $ | 1,132 | | $ | 935 | | 1.70 | % | 1.27 | % | 1.12 | % | Taxable | $ | 333,520 | | $ | 337,957 | | $ | 355,293 | | $ | 2,287 | | $ | 2,238 | | $ | 1,521 | | 2.72 | % | 2.66 | % | 1.70 | % |
| Exempt from U.S. income tax | Exempt from U.S. income tax | 11,809 | | 11,898 | | 11,973 | | 110 | | 108 | | 99 | | 3.70 | | 3.64 | | 3.28 | | Exempt from U.S. income tax | 11,432 | | 11,577 | | 11,809 | | 120 | | 108 | | 110 | | 4.16 | | 3.74 | | 3.70 | |
In offices outside the U.S.(4) | In offices outside the U.S.(4) | 146,312 | | 150,435 | | 153,802 | | 1,379 | | 1,147 | | 873 | | 3.74 | | 3.06 | | 2.25 | | In offices outside the U.S.(4) | 163,902 | | 158,415 | | 146,312 | | 2,320 | | 2,110 | | 1,379 | | 5.62 | | 5.34 | | 3.74 | |
| Total | Total | $ | 513,414 | | $ | 519,582 | | $ | 498,112 | | $ | 3,010 | | $ | 2,387 | | $ | 1,907 | | 2.33 | % | 1.84 | % | 1.52 | % | Total | $ | 508,854 | | $ | 507,949 | | $ | 513,414 | | $ | 4,727 | | $ | 4,456 | | $ | 3,010 | | 3.69 | % | 3.52 | % | 2.33 | % |
Consumer loans(8) | Consumer loans(8) | | | | | | Consumer loans(8) | | | | | |
| In U.S. offices | In U.S. offices | $ | 273,324 | | $ | 264,240 | | $ | 254,052 | | $ | 6,064 | | $ | 5,348 | | $ | 4,964 | | 8.80 | % | 8.12 | % | 7.75 | % | In U.S. offices | $ | 297,178 | | $ | 289,122 | | $ | 273,324 | | $ | 7,807 | | $ | 7,294 | | $ | 6,064 | | 10.42 | % | 10.12 | % | 8.80 | % |
In offices outside the U.S.(4) | In offices outside the U.S.(4) | 83,023 | | 88,291 | | 119,164 | | 1,316 | | 1,253 | | 1,603 | | 6.29 | | 5.69 | | 5.34 | | In offices outside the U.S.(4) | 78,454 | | 78,730 | | 83,023 | | 1,802 | | 1,668 | | 1,316 | | 9.11 | | 8.50 | | 6.29 | |
| Total | Total | $ | 356,347 | | $ | 352,531 | | $ | 373,216 | | $ | 7,380 | | $ | 6,601 | | $ | 6,567 | | 8.22 | % | 7.51 | % | 6.98 | % | Total | $ | 375,632 | | $ | 367,852 | | $ | 356,347 | | $ | 9,609 | | $ | 8,962 | | $ | 7,380 | | 10.15 | % | 9.77 | % | 8.22 | % |
Corporate loans(8) | Corporate loans(8) | | | | | | Corporate loans(8) | | | | | |
| In U.S. offices | In U.S. offices | $ | 141,539 | | $ | 142,180 | | $ | 134,363 | | $ | 1,449 | | $ | 1,285 | | $ | 1,071 | | 4.06 | % | 3.63 | % | 3.16 | % | In U.S. offices | $ | 133,944 | | $ | 135,716 | | $ | 141,539 | | $ | 1,862 | | $ | 1,791 | | $ | 1,449 | | 5.52 | % | 5.29 | % | 4.06 | % |
In offices outside the U.S.(4) | In offices outside the U.S.(4) | 156,832 | | 162,776 | | 160,908 | | 1,981 | | 1,632 | | 1,259 | | 5.01 | | 4.02 | | 3.10 | | In offices outside the U.S.(4) | 152,710 | | 150,023 | | 156,832 | | 3,585 | | 3,311 | | 1,981 | | 9.31 | | 8.85 | | 5.01 | |
| Total | Total | $ | 298,371 | | $ | 304,956 | | $ | 295,271 | | $ | 3,430 | | $ | 2,917 | | $ | 2,330 | | 4.56 | % | 3.84 | % | 3.13 | % | Total | $ | 286,654 | | $ | 285,739 | | $ | 298,371 | | $ | 5,447 | | $ | 5,102 | | $ | 3,430 | | 7.54 | % | 7.16 | % | 4.56 | % |
Total loans(8) | Total loans(8) | | | | | | Total loans(8) | | | | | |
| In U.S. offices | In U.S. offices | $ | 414,863 | | $ | 406,420 | | $ | 388,415 | | $ | 7,513 | | $ | 6,633 | | $ | 6,035 | | 7.18 | % | 6.55 | % | 6.16 | % | In U.S. offices | $ | 431,122 | | $ | 424,838 | | $ | 414,863 | | $ | 9,669 | | $ | 9,085 | | $ | 7,513 | | 8.90 | % | 8.58 | % | 7.18 | % |
In offices outside the U.S.(4) | In offices outside the U.S.(4) | 239,855 | | 251,067 | | 280,072 | | 3,297 | | 2,885 | | 2,862 | | 5.45 | | 4.61 | | 4.05 | | In offices outside the U.S.(4) | 231,164 | | 228,753 | | 239,855 | | 5,387 | | 4,979 | | 3,297 | | 9.25 | | 8.73 | | 5.45 | |
| Total | Total | $ | 654,718 | | $ | 657,487 | | $ | 668,487 | | $ | 10,810 | | $ | 9,518 | | $ | 8,897 | | 6.55 | % | 5.81 | % | 5.28 | % | Total | $ | 662,286 | | $ | 653,591 | | $ | 654,718 | | $ | 15,056 | | $ | 14,064 | | $ | 10,810 | | 9.02 | % | 8.63 | % | 6.55 | % |
Other interest-earning assets(9) | Other interest-earning assets(9) | $ | 110,619 | | $ | 121,629 | | $ | 71,193 | | $ | 760 | | $ | 644 | | $ | 196 | | 2.73 | % | 2.12 | % | 1.09 | % | Other interest-earning assets(9) | $ | 76,400 | | $ | 85,083 | | $ | 110,619 | | $ | 1,176 | | $ | 1,085 | | $ | 760 | | 6.11 | % | 5.11 | % | 2.73 | % |
| Total interest-earning assets | Total interest-earning assets | $ | 2,169,910 | | $ | 2,151,532 | | $ | 2,143,777 | | $ | 19,965 | | $ | 15,674 | | $ | 12,696 | | 3.65 | % | 2.92 | % | 2.35 | % | Total interest-earning assets | $ | 2,206,171 | | $ | 2,251,603 | | $ | 2,169,910 | | $ | 34,860 | | $ | 32,660 | | $ | 19,965 | | 6.27 | % | 5.82 | % | 3.65 | % |
Non-interest-earning assets(6) | Non-interest-earning assets(6) | $ | 229,536 | | $ | 228,521 | | $ | 202,248 | | | | | | Non-interest-earning assets(6) | $ | 207,608 | | $ | 214,011 | | $ | 229,536 | | | | | |
| | Total assets | Total assets | $ | 2,399,446 | | $ | 2,380,053 | | $ | 2,346,025 | | | | | | Total assets | $ | 2,413,779 | | $ | 2,465,614 | | $ | 2,399,446 | | | | | |
| | | |
| | Nine Months—Assets | Nine Months—Assets | Average volume | Interest revenue | % Average rate | Nine Months—Assets | Average balance | Interest revenue | % Average rate |
| | Nine Months | | Nine Months | Nine Months | | Nine Months | Nine Months | | Nine Months | | Nine Months | | Nine Months | Nine Months | | Nine Months | Nine Months | | Nine Months |
| In millions of dollars, except rates | In millions of dollars, except rates | 2022 | | 2021 | 2022 | | 2021 | 2022 | | 2021 | In millions of dollars, except rates | 2023 | | 2022 | 2023 | | 2022 | 2023 | | 2022 |
Deposits with banks(4) | Deposits with banks(4) | $ | 248,119 | | | $ | 299,315 | | $ | 2,172 | | | $ | 418 | | 1.17 | % | | 0.19 | % | Deposits with banks(4) | $ | 299,449 | | | $ | 248,119 | | $ | 8,725 | | | $ | 2,172 | | 3.90 | % | | 1.17 | % |
Securities borrowed and purchased under agreements to resell(5) | Securities borrowed and purchased under agreements to resell(5) | | | | | | Securities borrowed and purchased under agreements to resell(5) | | | | | |
| In U.S. offices | In U.S. offices | $ | 189,671 | | | $ | 170,761 | | $ | 1,852 | | | $ | 272 | | 1.31 | % | | 0.21 | % | In U.S. offices | $ | 178,268 | | | $ | 189,671 | | $ | 9,644 | | | $ | 1,852 | | 7.23 | % | | 1.31 | % |
In offices outside the U.S.(4) | In offices outside the U.S.(4) | 161,954 | | | 145,700 | | 1,523 | | | 491 | | 1.26 | | | 0.45 | | In offices outside the U.S.(4) | 183,852 | | | 161,954 | | 9,147 | | | 1,523 | | 6.65 | | | 1.26 | |
| Total | Total | $ | 351,625 | | | $ | 316,461 | | $ | 3,375 | | | $ | 763 | | 1.28 | % | | 0.32 | % | Total | $ | 362,120 | | | $ | 351,625 | | $ | 18,791 | | | $ | 3,375 | | 6.94 | % | | 1.28 | % |
Trading account assets(6)(7) | Trading account assets(6)(7) | | | | | | Trading account assets(6)(7) | | | | | |
| In U.S. offices | In U.S. offices | $ | 139,682 | | | $ | 143,639 | | $ | 2,420 | | | $ | 1,996 | | 2.32 | % | | 1.86 | % | In U.S. offices | $ | 179,654 | | | $ | 139,682 | | $ | 6,178 | | | $ | 2,420 | | 4.60 | % | | 2.32 | % |
In offices outside the U.S.(4) | In offices outside the U.S.(4) | 133,449 | | | 155,894 | | 2,381 | | | 2,099 | | 2.39 | | | 1.80 | | In offices outside the U.S.(4) | 144,985 | | | 133,449 | | 4,215 | | | 2,381 | | 3.89 | | | 2.39 | |
| Total | Total | $ | 273,131 | | | $ | 299,533 | | $ | 4,801 | | | $ | 4,095 | | 2.35 | % | | 1.83 | % | Total | $ | 324,639 | | | $ | 273,131 | | $ | 10,393 | | | $ | 4,801 | | 4.28 | % | | 2.35 | % |
| Investments | Investments | | | | | | Investments | | | | | |
| In U.S. offices | In U.S. offices | | | | | | In U.S. offices | | | | | |
| Taxable | Taxable | $ | 355,483 | | | $ | 316,038 | | $ | 3,674 | | | $ | 2,608 | | 1.38 | % | | 1.10 | % | Taxable | $ | 338,751 | | | $ | 355,483 | | $ | 6,674 | | | $ | 3,674 | | 2.63 | % | | 1.38 | % |
| Exempt from U.S. income tax | Exempt from U.S. income tax | 11,773 | | | 12,496 | | 313 | | | 331 | | 3.55 | | | 3.54 | | Exempt from U.S. income tax | 11,539 | | | 11,773 | | 344 | | | 313 | | 3.99 | | | 3.55 | |
In offices outside the U.S.(4) | In offices outside the U.S.(4) | 150,016 | | | 151,566 | | 3,477 | | | 2,592 | | 3.10 | | | 2.29 | | In offices outside the U.S.(4) | 160,819 | | | 150,016 | | 6,324 | | | 3,477 | | 5.26 | | | 3.10 | |
| Total | Total | $ | 517,272 | | | $ | 480,100 | | $ | 7,464 | | | $ | 5,531 | | 1.93 | % | | 1.54 | % | Total | $ | 511,109 | | | $ | 517,272 | | $ | 13,342 | | | $ | 7,464 | | 3.49 | % | | 1.93 | % |
Consumer loans(8) | Consumer loans(8) | | | | | | Consumer loans(8) | | | | | |
| In U.S. offices | In U.S. offices | $ | 264,941 | | | $ | 252,032 | | $ | 16,457 | | | $ | 14,740 | | 8.30 | % | | 7.82 | % | In U.S. offices | $ | 289,931 | | | $ | 264,941 | | $ | 22,152 | | | $ | 16,457 | | 10.22 | % | | 8.30 | % |
In offices outside the U.S.(4) | In offices outside the U.S.(4) | 88,762 | | | 124,112 | | 3,786 | | | 5,050 | | 5.70 | | | 5.44 | | In offices outside the U.S.(4) | 79,120 | | | 88,762 | | 5,043 | | | 3,786 | | 8.52 | | | 5.70 | |
| Total | Total | $ | 353,703 | | | $ | 376,144 | | $ | 20,243 | | | $ | 19,790 | | 7.65 | % | | 7.03 | % | Total | $ | 369,051 | | | $ | 353,703 | | $ | 27,195 | | | $ | 20,243 | | 9.85 | % | | 7.65 | % |
Corporate loans(8) | Corporate loans(8) | | | | | | Corporate loans(8) | | | | | |
| In U.S. offices | In U.S. offices | $ | 140,198 | | | $ | 131,661 | | $ | 3,846 | | | $ | 3,137 | | 3.67 | % | | 3.19 | % | In U.S. offices | $ | 135,798 | | | $ | 140,198 | | $ | 5,389 | | | $ | 3,846 | | 5.31 | % | | 3.67 | % |
In offices outside the U.S.(4) | In offices outside the U.S.(4) | 159,693 | | | 160,441 | | 4,978 | | | 3,659 | | 4.17 | | | 3.05 | | In offices outside the U.S.(4) | 151,689 | | | 159,693 | | 9,847 | | | 4,978 | | 8.68 | | | 4.17 | |
| Total | Total | $ | 299,891 | | | $ | 292,102 | | $ | 8,824 | | | $ | 6,796 | | 3.93 | % | | 3.11 | % | Total | $ | 287,487 | | | $ | 299,891 | | $ | 15,236 | | | $ | 8,824 | | 7.09 | % | | 3.93 | % |
Total loans(8) | Total loans(8) | | | | | | Total loans(8) | | | | | |
| In U.S. offices | In U.S. offices | $ | 405,139 | | | $ | 383,693 | | $ | 20,303 | | | $ | 17,877 | | 6.70 | % | | 6.23 | % | In U.S. offices | $ | 425,729 | | | $ | 405,139 | | $ | 27,541 | | | $ | 20,303 | | 8.65 | % | | 6.70 | % |
In offices outside the U.S.(4) | In offices outside the U.S.(4) | 248,455 | | | 284,553 | | 8,764 | | | 8,709 | | 4.72 | | | 4.09 | | In offices outside the U.S.(4) | 230,809 | | | 248,455 | | 14,890 | | | 8,764 | | 8.63 | | | 4.72 | |
| Total | Total | $ | 653,594 | | | $ | 668,246 | | $ | 29,067 | | | $ | 26,586 | | 5.95 | % | | 5.32 | % | Total | $ | 656,538 | | | $ | 653,594 | | $ | 42,431 | | | $ | 29,067 | | 8.64 | % | | 5.95 | % |
Other interest-earning assets(9) | Other interest-earning assets(9) | $ | 117,354 | | | $ | 72,325 | | $ | 1,953 | | | $ | 404 | | 2.23 | % | | 0.75 | % | Other interest-earning assets(9) | $ | 83,080 | | | $ | 117,354 | | $ | 3,277 | | | $ | 1,953 | | 5.27 | % | | 2.23 | % |
| Total interest-earning assets | Total interest-earning assets | $ | 2,161,095 | | | $ | 2,135,980 | | $ | 48,832 | | | $ | 37,797 | | 3.02 | % | | 2.37 | % | Total interest-earning assets | $ | 2,236,935 | | | $ | 2,161,095 | | $ | 96,959 | | | $ | 48,832 | | 5.80 | % | | 3.02 | % |
Non-interest-earning assets(6) | Non-interest-earning assets(6) | $ | 223,418 | | | $ | 198,896 | | | | | | Non-interest-earning assets(6) | $ | 210,277 | | | $ | 223,418 | | | | | |
| | Total assets | Total assets | $ | 2,384,513 | | | $ | 2,334,876 | | | | | | Total assets | $ | 2,447,212 | | | $ | 2,384,513 | | | | | |
| |
(1)Interest revenue and Net interest income include the taxable equivalent adjustments primarily related to the tax-exempt bond portfolio and certain tax-advantaged loan programs (based on the U.S. federal statutory tax rate of 21%) of $132$23 million, $13 million and $150$46 million for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively, and $80 million and $132 million for the nine months ended September 30, 20222023 and September 30, 2021,2022, respectively.
(2)Interest rates and amounts include the effects of risk management activities associated with the respective asset categories.
(3)Monthly or quarterly averages have been used by certain subsidiaries where daily averages are unavailable.
(4)Average rates reflect prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.
(5)Average volumes of securities borrowed or purchased under agreements to resell are reported net pursuant to ASC 210-20-45. However, Interest revenue excludes the impact of ASC 210-20-45.
(6)The fair value carrying amounts of derivative contracts are reported net, pursuant to ASC 815-10-45, in Non-interest-earning assets and Other non-interest-bearing liabilities.
(7)Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively.
(8)Net of unearned income. Includes cash-basis loans.
(9)Includes assets from businesses held-for-sale (see Note 2) and Brokerage receivables.
Average Balances and Interest Rates—Liabilities and Equity, and Net Interest Income(1)(2)(3)
Taxable Equivalent Basis
| | Quarterly—Liabilities | Quarterly—Liabilities | Average volume | Interest expense | % Average rate | Quarterly—Liabilities | Average balance | Interest expense | % Average rate |
| | 3rd Qtr. | 2nd Qtr. | 3rd Qtr. | 3rd Qtr. | 2nd Qtr. | 3rd Qtr. | 3rd Qtr. | 2nd Qtr. | 3rd Qtr. | | 3rd Qtr. | 2nd Qtr. | 3rd Qtr. | 3rd Qtr. | 2nd Qtr. | 3rd Qtr. | 3rd Qtr. | 2nd Qtr. | 3rd Qtr. |
| In millions of dollars, except rates | In millions of dollars, except rates | 2022 | 2022 | 2021 | 2022 | 2022 | 2021 | 2022 | 2022 | 2021 | In millions of dollars, except rates | 2023 | 2023 | 2022 | 2023 | 2023 | 2022 | 2023 | 2023 | 2022 |
| Deposits | Deposits | | | | | | | Deposits | | | | | | |
In U.S. offices(4) | In U.S. offices(4) | $ | 569,903 | | $ | 554,182 | | $ | 558,990 | | $ | 1,743 | | $ | 545 | | $ | 275 | | 1.21 | % | 0.39 | % | 0.20 | % | In U.S. offices(4) | $ | 586,909 | | $ | 595,476 | | $ | 569,903 | | $ | 5,390 | | $ | 4,983 | | $ | 1,743 | | 3.64 | % | 3.36 | % | 1.21 | % |
In offices outside the U.S.(5) | In offices outside the U.S.(5) | 505,456 | | 513,820 | | 538,800 | | 1,527 | | 875 | | 455 | | 1.20 | | 0.68 | | 0.34 | | In offices outside the U.S.(5) | 534,254 | | 536,735 | | 505,456 | | 4,240 | | 3,744 | | 1,527 | | 3.15 | | 2.80 | | 1.20 | |
| Total | Total | $ | 1,075,359 | | $ | 1,068,002 | | $ | 1,097,790 | | $ | 3,270 | | $ | 1,420 | | $ | 730 | | 1.21 | % | 0.53 | % | 0.26 | % | Total | $ | 1,121,163 | | $ | 1,132,211 | | $ | 1,075,359 | | $ | 9,630 | | $ | 8,727 | | $ | 3,270 | | 3.41 | % | 3.09 | % | 1.21 | % |
Securities loaned and sold under agreements to repurchase(6) | Securities loaned and sold under agreements to repurchase(6) | | | | | | Securities loaned and sold under agreements to repurchase(6) | | | | | |
| In U.S. offices | In U.S. offices | $ | 111,513 | | $ | 112,011 | | $ | 132,810 | | $ | 864 | | $ | 391 | | $ | 195 | | 3.07 | % | 1.40 | % | 0.58 | % | In U.S. offices | $ | 180,168 | | $ | 170,226 | | $ | 111,513 | | $ | 3,780 | | $ | 3,084 | | $ | 864 | | 8.32 | % | 7.27 | % | 3.07 | % |
In offices outside the U.S.(5) | In offices outside the U.S.(5) | 95,677 | | 96,388 | | 96,137 | | 387 | | 264 | | 92 | | 1.60 | | 1.10 | | 0.38 | | In offices outside the U.S.(5) | 94,955 | | 91,921 | | 95,677 | | 2,310 | | 1,869 | | 387 | | 9.65 | | 8.16 | | 1.60 | |
| Total | Total | $ | 207,190 | | $ | 208,399 | | $ | 228,947 | | $ | 1,251 | | $ | 655 | | $ | 287 | | 2.40 | % | 1.26 | % | 0.50 | % | Total | $ | 275,123 | | $ | 262,147 | | $ | 207,190 | | $ | 6,090 | | $ | 4,953 | | $ | 1,251 | | 8.78 | % | 7.58 | % | 2.40 | % |
Trading account liabilities(7)(8) | Trading account liabilities(7)(8) | | | | | | Trading account liabilities(7)(8) | | | | | |
| In U.S. offices | In U.S. offices | $ | 56,447 | | $ | 52,714 | | $ | 43,740 | | $ | 255 | | $ | 24 | | $ | 28 | | 1.79 | % | 0.18 | % | 0.25 | % | In U.S. offices | $ | 45,168 | | $ | 50,429 | | $ | 56,447 | | $ | 453 | | $ | 479 | | $ | 255 | | 3.98 | % | 3.81 | % | 1.79 | % |
In offices outside the U.S.(5) | In offices outside the U.S.(5) | 72,078 | | 72,096 | | 64,963 | | 217 | | 113 | | 78 | | 1.19 | | 0.63 | | 0.48 | | In offices outside the U.S.(5) | 66,199 | | 77,925 | | 72,078 | | 439 | | 391 | | 217 | | 2.63 | | 2.01 | | 1.19 | |
| Total | Total | $ | 128,525 | | $ | 124,810 | | $ | 108,703 | | $ | 472 | | $ | 137 | | $ | 106 | | 1.46 | % | 0.44 | % | 0.39 | % | Total | $ | 111,367 | | $ | 128,354 | | $ | 128,525 | | $ | 892 | | $ | 870 | | $ | 472 | | 3.18 | % | 2.72 | % | 1.46 | % |
Short-term borrowings and other interest-bearing liabilities(9) | Short-term borrowings and other interest-bearing liabilities(9) | | | | | | Short-term borrowings and other interest-bearing liabilities(9) | | | | | |
| In U.S. offices | In U.S. offices | $ | 103,375 | | $ | 94,028 | | $ | 65,584 | | $ | 654 | | $ | 217 | | $ | (19) | | 2.51 | % | 0.93 | % | (0.11) | % | In U.S. offices | $ | 87,040 | | $ | 86,990 | | $ | 103,375 | | $ | 1,737 | | $ | 1,608 | | $ | 654 | | 7.92 | % | 7.41 | % | 2.51 | % |
In offices outside the U.S.(5) | In offices outside the U.S.(5) | 50,947 | | 60,211 | | 27,132 | | 91 | | 51 | | 27 | | 0.71 | | 0.34 | | 0.39 | | In offices outside the U.S.(5) | 30,395 | | 39,744 | | 50,947 | | 219 | | 169 | | 91 | | 2.86 | | 1.71 | | 0.71 | |
| Total | Total | $ | 154,322 | | $ | 154,239 | | $ | 92,716 | | $ | 745 | | $ | 268 | | $ | 8 | | 1.92 | % | 0.70 | % | 0.03 | % | Total | $ | 117,435 | | $ | 126,734 | | $ | 154,322 | | $ | 1,956 | | $ | 1,777 | | $ | 745 | | 6.61 | % | 5.62 | % | 1.92 | % |
Long-term debt(10) | Long-term debt(10) | | | | | | Long-term debt(10) | | | | | |
| In U.S. offices | In U.S. offices | $ | 165,834 | | $ | 164,832 | | $ | 181,723 | | $ | 1,572 | | $ | 1,143 | | $ | 802 | | 3.76 | % | 2.78 | % | 1.75 | % | In U.S. offices | $ | 156,065 | | $ | 159,803 | | $ | 165,834 | | $ | 2,389 | | $ | 2,367 | | $ | 1,572 | | 6.07 | % | 5.94 | % | 3.76 | % |
In offices outside the U.S.(5) | In offices outside the U.S.(5) | 3,495 | | 3,892 | | 4,061 | | 46 | | 43 | | 26 | | 5.22 | | 4.43 | | 2.54 | | In offices outside the U.S.(5) | 2,420 | | 2,524 | | 3,495 | | 52 | | 53 | | 46 | | 8.52 | | 8.42 | | 5.22 | |
| Total | Total | $ | 169,329 | | $ | 168,724 | | $ | 185,784 | | $ | 1,618 | | $ | 1,186 | | $ | 828 | | 3.79 | % | 2.82 | % | 1.77 | % | Total | $ | 158,485 | | $ | 162,327 | | $ | 169,329 | | $ | 2,441 | | $ | 2,420 | | $ | 1,618 | | 6.11 | % | 5.98 | % | 3.79 | % |
| Total interest-bearing liabilities | Total interest-bearing liabilities | $ | 1,734,725 | | $ | 1,724,174 | | $ | 1,713,940 | | $ | 7,356 | | $ | 3,666 | | $ | 1,959 | | 1.68 | % | 0.85 | % | 0.45 | % | Total interest-bearing liabilities | $ | 1,783,573 | | $ | 1,811,773 | | $ | 1,734,725 | | $ | 21,009 | | $ | 18,747 | | $ | 7,356 | | 4.67 | % | 4.15 | % | 1.68 | % |
| Demand deposits in U.S. offices | Demand deposits in U.S. offices | $ | 140,271 | | $ | 143,426 | | $ | 122,731 | | | | | | Demand deposits in U.S. offices | $ | 104,930 | | $ | 113,639 | | $ | 140,271 | | | | | |
Other non-interest-bearing liabilities(7) | Other non-interest-bearing liabilities(7) | 325,283 | | 313,926 | | 307,078 | | | | | | Other non-interest-bearing liabilities(7) | 315,523 | | 331,119 | | 325,283 | | | | | |
| | Total liabilities | Total liabilities | $ | 2,200,279 | | $ | 2,181,526 | | $ | 2,143,749 | | | | | | Total liabilities | $ | 2,204,026 | | $ | 2,256,531 | | $ | 2,200,279 | | | | | |
| Citigroup stockholders’ equity | Citigroup stockholders’ equity | $ | 198,694 | | $ | 197,976 | | $ | 201,608 | | | | | | Citigroup stockholders’ equity | $ | 209,028 | | $ | 208,459 | | $ | 198,694 | | | | | |
| Noncontrolling interests | Noncontrolling interests | 473 | | 551 | | 668 | | | | | | Noncontrolling interests | 725 | | 624 | | 473 | | | | | |
| Total equity | Total equity | $ | 199,167 | | $ | 198,527 | | $ | 202,276 | | | | | | Total equity | $ | 209,753 | | $ | 209,083 | | $ | 199,167 | | | | | |
| Total liabilities and stockholders’ equity | Total liabilities and stockholders’ equity | $ | 2,399,446 | | $ | 2,380,053 | | $ | 2,346,025 | | | | | | Total liabilities and stockholders’ equity | $ | 2,413,779 | | $ | 2,465,614 | | $ | 2,399,446 | | | | | |
Net interest income as a percentage of average interest-earning assets(11) | Net interest income as a percentage of average interest-earning assets(11) | | | | | | | Net interest income as a percentage of average interest-earning assets(11) | | | | | | |
| In U.S. offices | In U.S. offices | $ | 1,278,682 | | $ | 1,247,713 | | $ | 1,246,588 | | $ | 7,458 | | $ | 7,070 | | $ | 6,686 | | 2.31 | % | 2.27 | % | 2.13 | % | In U.S. offices | $ | 1,287,260 | | $ | 1,336,146 | | $ | 1,278,682 | | $ | 6,561 | | $ | 6,961 | | $ | 7,458 | | 2.02 | % | 2.09 | % | 2.31 | % |
In offices outside the U.S.(6) | In offices outside the U.S.(6) | 891,228 | | 903,819 | | 897,189 | | 5,151 | | 4,938 | | 4,051 | | 2.29 | | 2.19 | | 1.79 | | In offices outside the U.S.(6) | 918,911 | | 915,457 | | 891,228 | | 7,290 | | 6,952 | | 5,151 | | 3.15 | | 3.05 | | 2.29 | |
| Total | Total | $ | 2,169,910 | | $ | 2,151,532 | | $ | 2,143,777 | | $ | 12,609 | | $ | 12,008 | | $ | 10,737 | | 2.31 | % | 2.24 | % | 1.99 | % | Total | $ | 2,206,171 | | $ | 2,251,603 | | $ | 2,169,910 | | $ | 13,851 | | $ | 13,913 | | $ | 12,609 | | 2.49 | % | 2.48 | % | 2.31 | % |
| | | |
| | Nine Months—Liabilities | Nine Months—Liabilities | Average volume | Interest expense | % Average rate | Nine Months—Liabilities | Average balance | Interest expense | % Average rate |
| | Nine Months | | Nine Months | Nine Months | | Nine Months | Nine Months | | Nine Months | | Nine Months | | Nine Months | Nine Months | | Nine Months | Nine Months | | Nine Months |
| In millions of dollars, except rates | In millions of dollars, except rates | 2022 | | 2021 | 2022 | | 2021 | 2022 | | 2021 | In millions of dollars, except rates | 2023 | | 2022 | 2023 | | 2022 | 2023 | | 2022 |
| Deposits | Deposits | | | | | | Deposits | | | | | |
In U.S. offices(4) | In U.S. offices(4) | $ | 561,368 | | | $ | 520,311 | | $ | 2,525 | | | $ | 827 | | 0.60 | % | | 0.21 | % | In U.S. offices(4) | $ | 595,461 | | | $ | 561,368 | | $ | 14,805 | | | $ | 2,525 | | 3.32 | % | | 0.60 | % |
In offices outside the U.S.(5) | In offices outside the U.S.(5) | 513,121 | | | 561,938 | | 3,036 | | | 1,291 | | 0.79 | | | 0.31 | | In offices outside the U.S.(5) | 538,056 | | | 513,121 | | 11,260 | | | 3,036 | | 2.80 | | | 0.79 | |
| Total | Total | $ | 1,074,489 | | | $ | 1,082,249 | | $ | 5,561 | | | $ | 2,118 | | 0.69 | % | | 0.26 | % | Total | $ | 1,133,517 | | | $ | 1,074,489 | | $ | 26,065 | | | $ | 5,561 | | 3.07 | % | | 0.69 | % |
Securities loaned and sold under agreements to repurchase(6) | Securities loaned and sold under agreements to repurchase(6) | | | | | | Securities loaned and sold under agreements to repurchase(6) | | | | | |
| In U.S. offices | In U.S. offices | $ | 113,772 | | | $ | 140,153 | | $ | 1,416 | | | $ | 536 | | 1.66 | % | | 0.51 | % | In U.S. offices | $ | 160,543 | | | $ | 113,772 | | $ | 9,096 | | | $ | 1,416 | | 7.58 | % | | 1.66 | % |
In offices outside the U.S.(5) | In offices outside the U.S.(5) | 94,791 | | | 93,463 | | 772 | | | 264 | | 1.09 | | | 0.38 | | In offices outside the U.S.(5) | 93,116 | | | 94,791 | | 5,513 | | | 772 | | 7.92 | | | 1.09 | |
| Total | Total | $ | 208,563 | | | $ | 233,616 | | $ | 2,188 | | | $ | 800 | | 1.40 | % | | 0.46 | % | Total | $ | 253,659 | | | $ | 208,563 | | $ | 14,609 | | | $ | 2,188 | | 7.70 | % | | 1.40 | % |
Trading account liabilities(7)(8) | Trading account liabilities(7)(8) | | | | | | Trading account liabilities(7)(8) | | | | | |
| In U.S. offices | In U.S. offices | $ | 52,584 | | | $ | 47,990 | | $ | 315 | | | $ | 80 | | 0.80 | % | | 0.22 | % | In U.S. offices | $ | 49,277 | | | $ | 52,584 | | $ | 1,344 | | | $ | 315 | | 3.65 | % | | 0.80 | % |
In offices outside the U.S.(5) | In offices outside the U.S.(5) | 69,965 | | | 68,078 | | 441 | | | 290 | | 0.84 | | | 0.57 | | In offices outside the U.S.(5) | 73,750 | | | 69,965 | | 1,205 | | | 441 | | 2.18 | | | 0.84 | |
| Total | Total | $ | 122,549 | | | $ | 116,068 | | $ | 756 | | | $ | 370 | | 0.82 | % | | 0.43 | % | Total | $ | 123,027 | | | $ | 122,549 | | $ | 2,549 | | | $ | 756 | | 2.77 | % | | 0.82 | % |
Short-term borrowings and other interest bearing liabilities(9) | Short-term borrowings and other interest bearing liabilities(9) | | | | | | Short-term borrowings and other interest bearing liabilities(9) | | | | | |
| In U.S. offices | In U.S. offices | $ | 92,022 | | | $ | 69,314 | | $ | 884 | | | $ | (36) | | 1.28 | % | | (0.07) | % | In U.S. offices | $ | 90,041 | | | $ | 92,022 | | $ | 4,827 | | | $ | 884 | | 7.17 | % | | 1.28 | % |
In offices outside the U.S.(5) | In offices outside the U.S.(5) | 57,119 | | | 23,933 | | 184 | | | 106 | | 0.43 | | | 0.59 | | In offices outside the U.S.(5) | 39,356 | | | 57,119 | | 555 | | | 184 | | 1.89 | | | 0.43 | |
| Total | Total | $ | 149,141 | | | $ | 93,247 | | $ | 1,068 | | | $ | 70 | | 0.96 | % | | 0.10 | % | Total | $ | 129,397 | | | $ | 149,141 | | $ | 5,382 | | | $ | 1,068 | | 5.56 | % | | 0.96 | % |
Long-term debt(10) | Long-term debt(10) | | | | | | Long-term debt(10) | | | | | |
| In U.S. offices | In U.S. offices | $ | 165,880 | | | $ | 191,408 | | $ | 3,604 | | | $ | 2,559 | | 2.90 | % | | 1.79 | % | In U.S. offices | $ | 161,240 | | | $ | 165,880 | | $ | 7,041 | | | $ | 3,604 | | 5.84 | % | | 2.90 | % |
In offices outside the U.S.(5) | In offices outside the U.S.(5) | 3,780 | | | 4,396 | | 125 | | | 55 | | 4.42 | | | 1.67 | | In offices outside the U.S.(5) | 2,542 | | | 3,780 | | 157 | | | 125 | | 8.26 | | | 4.42 | |
| Total | Total | $ | 169,660 | | | $ | 195,804 | | $ | 3,729 | | | $ | 2,614 | | 2.94 | % | | 1.78 | % | Total | $ | 163,782 | | | $ | 169,660 | | $ | 7,198 | | | $ | 3,729 | | 5.88 | % | | 2.94 | % |
| Total interest-bearing liabilities | Total interest-bearing liabilities | $ | 1,724,402 | | | $ | 1,720,984 | | $ | 13,302 | | | $ | 5,972 | | 1.03 | % | | 0.46 | % | Total interest-bearing liabilities | $ | 1,803,382 | | | $ | 1,724,402 | | $ | 55,803 | | | $ | 13,302 | | 4.14 | % | | 1.03 | % |
| Demand deposits in U.S. offices | Demand deposits in U.S. offices | $ | 137,682 | | | $ | 86,009 | | | | | | Demand deposits in U.S. offices | $ | 113,080 | | | $ | 137,682 | | | | | |
Other non-interest-bearing liabilities(7) | Other non-interest-bearing liabilities(7) | 322,927 | | | 325,777 | | | | | | Other non-interest-bearing liabilities(7) | 323,035 | | | 322,927 | | | | | |
| | Total liabilities | Total liabilities | $ | 2,185,011 | | | $ | 2,132,770 | | | | | | Total liabilities | $ | 2,239,497 | | | $ | 2,185,011 | | | | | |
| Citigroup stockholders’ equity | Citigroup stockholders’ equity | $ | 198,945 | | | $ | 201,426 | | | | | | Citigroup stockholders’ equity | $ | 207,071 | | | $ | 198,945 | | | | | |
| Noncontrolling interests | Noncontrolling interests | 557 | | | 680 | | | | | | Noncontrolling interests | 644 | | | 557 | | | | | |
| Total equity | Total equity | $ | 199,502 | | | $ | 202,106 | | | | | | Total equity | $ | 207,715 | | | $ | 199,502 | | | | | |
| Total liabilities and stockholders’ equity | Total liabilities and stockholders’ equity | $ | 2,384,513 | | | $ | 2,334,876 | | | | | | Total liabilities and stockholders’ equity | $ | 2,447,212 | | | $ | 2,384,513 | | | | | |
Net interest income as a percentage of average interest-earning assets(11) | Net interest income as a percentage of average interest-earning assets(11) | | | | | | Net interest income as a percentage of average interest-earning assets(11) | | | | | |
| In U.S. offices | In U.S. offices | $ | 1,257,817 | | | $ | 1,237,799 | | $ | 21,386 | | | $ | 19,539 | | 2.27 | % | | 2.11 | % | In U.S. offices | $ | 1,321,446 | | | $ | 1,257,817 | | $ | 20,977 | | | $ | 21,386 | | 2.12 | % | | 2.27 | % |
In offices outside the U.S.(6) | In offices outside the U.S.(6) | 903,278 | | | 898,182 | | 14,144 | | | 12,286 | | 2.09 | | | 1.83 | | In offices outside the U.S.(6) | 915,491 | | | 903,278 | | 20,179 | | | 14,144 | | 2.95 | | | 2.09 | |
| Total | Total | $ | 2,161,095 | | | $ | 2,135,981 | | $ | 35,530 | | | $ | 31,825 | | 2.20 | % | | 1.99 | % | Total | $ | 2,236,937 | | | $ | 2,161,095 | | $ | 41,156 | | | $ | 35,530 | | 2.46 | % | | 2.20 | % |
|
(1)Interest revenue and Net interest income include the taxable equivalent adjustments discussed in the table above.
(2)Interest rates and amounts include the effects of risk management activities associated with the respective liability categories.
(3)Monthly or quarterly averages have been used by certain subsidiaries where daily averages are unavailable.
(4)Consists of other time deposits and savings deposits. Savings deposits are made up of insured money market accounts, NOW accounts and other savings deposits.
(5)Average rates reflect prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.
(6)Average volumes of securities sold under agreements to repurchase are reported net pursuant to ASC 210-20-45. However, Interest expense excludes the impact of ASC 210-20-45.
(7)The fair value carrying amounts of derivative contracts are reported net, pursuant to ASC 815-10-45, in Non-interest-earning assets and Other non-interest-bearing liabilities.
(8)Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively.
(9)Includes Brokerage payables.
(10)Excludes hybrid financial instruments and beneficial interests in consolidated VIEs that are classified as Long-term debt, as the changes in fair value for these obligations are recorded in Principal transactions.
(11)Includes allocations for capital and funding costs based on the location of the asset.
Analysis of Changes in Interest Revenue(1)(2)(3)
| | | | | | | | | | | | | | | | | | | | |
| | 3Q22 vs. 2Q22 | 3Q22 vs. 3Q21 |
| | Increase (decrease)
due to change in: | Increase (decrease)
due to change in: |
| In millions of dollars | Average
volume | Average
rate | Net
change | Average
volume | Average
rate | Net
change |
Deposits with banks(3) | $ | 93 | | $ | 467 | | $ | 560 | | $ | (21) | | $ | 1,092 | | $ | 1,071 | |
| Securities borrowed and purchased under agreements to resell | | | | | | |
| In U.S. offices | $ | 28 | | $ | 799 | | $ | 827 | | $ | 11 | | $ | 1,204 | | $ | 1,215 | |
In offices outside the U.S.(3) | 3 | | 541 | | 544 | | 21 | | 676 | | 697 | |
| Total | $ | 31 | | $ | 1,340 | | $ | 1,371 | | $ | 32 | | $ | 1,880 | | $ | 1,912 | |
Trading account assets(4) | | | | | | |
| In U.S. offices | $ | 18 | | $ | 546 | | $ | 564 | | $ | 50 | | $ | 481 | | $ | 531 | |
In offices outside the U.S.(3) | (50) | | (185) | | (235) | | (113) | | 288 | | 175 | |
| Total | $ | (32) | | $ | 361 | | $ | 329 | | $ | (63) | | $ | 769 | | $ | 706 | |
Investments(1) | | | | | | |
| In U.S. offices | $ | (7) | | $ | 398 | | $ | 391 | | $ | 72 | | $ | 525 | | $ | 597 | |
In offices outside the U.S.(3) | (32) | | 264 | | 232 | | (44) | | 550 | | 506 | |
| Total | $ | (39) | | $ | 662 | | $ | 623 | | $ | 28 | | $ | 1,075 | | $ | 1,103 | |
Consumer loans (net of unearned income)(5) | | | | | | |
| In U.S. offices | $ | 189 | | $ | 527 | | $ | 716 | | $ | 395 | | $ | 705 | | $ | 1,100 | |
In offices outside the U.S.(3) | (78) | | 141 | | 63 | | (541) | | 254 | | (287) | |
| Total | $ | 111 | | $ | 668 | | $ | 779 | | $ | (146) | | $ | 959 | | $ | 813 | |
Corporate loans (net of unearned income)(5) | | | | | | |
| In U.S. offices | $ | (5) | | $ | 169 | | $ | 164 | | $ | 60 | | $ | 318 | | $ | 378 | |
In offices outside the U.S.(3) | (62) | | 411 | | 349 | | (33) | | 755 | | 722 | |
| Total | $ | (67) | | $ | 580 | | $ | 513 | | $ | 27 | | $ | 1,073 | | $ | 1,100 | |
Loans (net of unearned income)(5) | | | | | | |
| In U.S. offices | $ | 184 | | $ | 696 | | $ | 880 | | $ | 455 | | $ | 1,023 | | $ | 1,478 | |
In offices outside the U.S.(3) | (140) | | 552 | | 412 | | (574) | | 1,009 | | 435 | |
| Total | $ | 44 | | $ | 1,248 | | $ | 1,292 | | $ | (119) | | $ | 2,032 | | $ | 1,913 | |
Other interest-earning assets(6) | $ | (62) | | $ | 178 | | $ | 116 | | $ | 152 | | $ | 412 | | $ | 564 | |
| Total interest revenue | $ | 35 | | $ | 4,256 | | $ | 4,291 | | $ | 9 | | $ | 7,260 | | $ | 7,269 | |
(1)Interest revenue and Net interest income include the taxable equivalent adjustments discussed in the table above.
(2)Rate/volume variance is allocated based on the percentage relationship of changes in volume and changes in rate to the total net change.
(3)Changes in average rates reflect changes in prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.
(4)Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively.
(5)Includes cash-basis loans.
(6)Includes Brokerage receivables.
Analysis of Changes in Interest Expense and Net Interest Income(1)(2)(3)
| | | | | | | | | | | | | | | | | | | | |
| | 3Q22 vs. 2Q22 | 3Q22 vs. 3Q21 |
| | Increase (decrease)
due to change in: | Increase (decrease)
due to change in: |
| In millions of dollars | Average
volume | Average
rate | Net
change | Average
volume | Average
rate | Net
change |
| Deposits | | | | | | |
| In U.S. offices | $ | 15 | | $ | 1,183 | | $ | 1,198 | | $ | 6 | | $ | 1,462 | | $ | 1,468 | |
In offices outside the U.S.(3) | (14) | | 666 | | 652 | | (30) | | 1,102 | | 1,072 | |
| Total | $ | 1 | | $ | 1,849 | | $ | 1,850 | | $ | (24) | | $ | 2,564 | | $ | 2,540 | |
| Securities loaned and sold under agreements to repurchase | | | | | | |
| In U.S. offices | $ | (2) | | $ | 475 | | $ | 473 | | $ | (37) | | $ | 706 | | $ | 669 | |
In offices outside the U.S.(3) | (2) | | 125 | | 123 | | — | | 295 | | 295 | |
| Total | $ | (4) | | $ | 600 | | $ | 596 | | $ | (37) | | $ | 1,001 | | $ | 964 | |
Trading account liabilities(4) | | | | | | |
| In U.S. offices | $ | 2 | | $ | 229 | | $ | 231 | | $ | 11 | | $ | 216 | | $ | 227 | |
In offices outside the U.S.(3) | — | | 104 | | 104 | | 9 | | 130 | | 139 | |
| Total | $ | 2 | | $ | 333 | | $ | 335 | | $ | 20 | | $ | 346 | | $ | 366 | |
Short-term borrowings and other interest-bearing liabilities(5) | | | | | | |
| In U.S. offices | $ | 24 | | $ | 413 | | $ | 437 | | $ | (5) | | $ | 678 | | $ | 673 | |
In offices outside the U.S.(3) | (9) | | 49 | | 40 | | 34 | | 30 | | 64 | |
| Total | $ | 15 | | $ | 462 | | $ | 477 | | $ | 29 | | $ | 708 | | $ | 737 | |
| Long-term debt | | | | | | |
| In U.S. offices | $ | 7 | | $ | 422 | | $ | 429 | | $ | (76) | | $ | 846 | | $ | 770 | |
In offices outside the U.S.(3) | (5) | | 8 | | 3 | | (4) | | 24 | | 20 | |
| Total | $ | 2 | | $ | 430 | | $ | 432 | | $ | (80) | | $ | 870 | | $ | 790 | |
| Total interest expense | $ | 16 | | $ | 3,674 | | $ | 3,690 | | $ | (92) | | $ | 5,489 | | $ | 5,397 | |
| Net interest income | $ | 18 | | $ | 583 | | $ | 601 | | $ | 102 | | $ | 1,770 | | $ | 1,872 | |
(1)Interest revenue and Net interest income include the taxable equivalent adjustments discussed in the table above.
(2)Rate/volume variance is allocated based on the percentage relationship of changes in volume and changes in rate to the total net change.
(3)Changes in average rates reflect changes in prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.
(4)Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively.
(5)Includes Brokerage payables.
Analysis of Changes in Interest Revenue(1)(2)(3)
| | | | | | | | | | | |
| | Nine Months 2022 vs. Nine Months 2021 |
| | Increase (decrease)
due to change in: |
| In millions of dollars | Average
volume | Average
rate | Net
change |
Deposits with banks(3) | $ | (83) | | $ | 1,837 | | $ | 1,754 | |
| Securities borrowed and purchased under agreements to resell | | | |
| In U.S. offices | $ | 33 | | $ | 1,547 | | $ | 1,580 | |
In offices outside the U.S.(3) | 61 | | 971 | | 1,032 | |
| Total | $ | 94 | | $ | 2,518 | | $ | 2,612 | |
Trading account assets(4) | | | |
| In U.S. offices | $ | (57) | | $ | 481 | | $ | 424 | |
In offices outside the U.S.(3) | (332) | | 614 | | 282 | |
| Total | $ | (389) | | $ | 1,095 | | $ | 706 | |
Investments(1) | | | |
| In U.S. offices | $ | 373 | | $ | 675 | | $ | 1,048 | |
In offices outside the U.S.(3) | (27) | | 912 | | 885 | |
| Total | $ | 346 | | $ | 1,587 | | $ | 1,933 | |
Consumer loans (net of unearned income)(5) | | | |
| In U.S. offices | $ | 776 | | $ | 941 | | $ | 1,717 | |
In offices outside the U.S.(3) | (1,498) | | 234 | | (1,264) | |
| Total | $ | (722) | | $ | 1,175 | | $ | 453 | |
Corporate loans (net of unearned income)(5) | | | |
| In U.S. offices | $ | 213 | | $ | 496 | | $ | 709 | |
In offices outside the U.S.(3) | (17) | | 1,336 | | 1,319 | |
| Total | $ | 196 | | $ | 1,832 | | $ | 2,028 | |
Total loans(5) | | | |
| In U.S. offices | $ | 989 | | $ | 1,437 | | $ | 2,426 | |
In offices outside the U.S.(3) | (1,515) | | 1,570 | | 55 | |
| Total | $ | (526) | | $ | 3,007 | | $ | 2,481 | |
Other interest-earning assets(6) | $ | 371 | | $ | 1,178 | | $ | 1,549 | |
| Total interest revenue | $ | (187) | | $ | 11,222 | | $ | 11,035 | |
(1)Interest revenue and Net interest income include the taxable equivalent adjustments discussed in the table above.
(2)Rate/volume variance is allocated based on the percentage relationship of changes in volume and changes in rate to the total net change.
(3)Changes in average rates reflect changes in prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.
(4)Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively.
(5)Includes cash-basis loans.
(6)Includes Brokerage receivables.
Analysis of Changes in Interest Expense and Net Interest Income(1)(2)(3)
| | | | | | | | | | | |
| | Nine Months 2022 vs. Nine Months 2021 |
| | Increase (decrease)
due to change in: |
| In millions of dollars | Average
volume | Average
rate | Net
change |
| Deposits | | | |
| In U.S. offices | $ | 70 | | $ | 1,628 | | $ | 1,698 | |
In offices outside the U.S.(3) | (121) | | 1,866 | | 1,745 | |
| Total | $ | (51) | | $ | 3,494 | | $ | 3,443 | |
| Securities loaned and sold under agreements to repurchase | | | |
| In U.S. offices | $ | (119) | | $ | 999 | | $ | 880 | |
In offices outside the U.S.(3) | 4 | | 504 | | 508 | |
| Total | $ | (115) | | $ | 1,503 | | $ | 1,388 | |
Trading account liabilities(4) | | | |
| In U.S. offices | $ | 9 | | $ | 226 | | $ | 235 | |
In offices outside the U.S.(3) | 8 | | 143 | | 151 | |
| Total | $ | 17 | | $ | 369 | | $ | 386 | |
Short-term borrowings and other interest bearing liabilities(5) | | | |
| In U.S. offices | $ | (8) | | $ | 928 | | $ | 920 | |
In offices outside the U.S.(3) | 113 | | (35) | | 78 | |
| Total | $ | 105 | | $ | 893 | | $ | 998 | |
| Long-term debt | | | |
| In U.S. offices | $ | (379) | | $ | 1,424 | | $ | 1,045 | |
In offices outside the U.S.(3) | (9) | | 79 | | 70 | |
| Total | $ | (388) | | $ | 1,503 | | $ | 1,115 | |
| Total interest expense | $ | (432) | | $ | 7,762 | | $ | 7,330 | |
| Net interest income | $ | 245 | | $ | 3,460 | | $ | 3,705 | |
(1)Interest revenue and Net interest income include the taxable equivalent adjustments discussed in the table above.
(2)Rate/volume variance is allocated based on the percentage relationship of changes in volume and changes in rate to the total net change.
(3)Changes in average rates reflect changes in prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.
(4)Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively.
(5)Includes Brokerage payables.
Market Risk of Trading Portfolios
Value at Risk (VAR)
Citi believes its VAR model is conservatively calibrated to incorporate fat-tail scaling and the greater of short-term (approximately the most recent month) and long-term (three years)(18 months for commodities and three years for others) market volatility. As of September 30, 2022,2023, Citi estimates that the conservative features of the VAR calibration contribute an approximate 40%32% add-on to what would be a VAR estimated under the assumption of stable and perfectly, normally distributed markets. As of June 30, 2022,2023, the add-on was 53%48%.
As presented in the table below, Citi’s average trading VAR for the third quarter of 2022 increased2023 decreased 13% quarter-over-quarter, mainly due to higher market volatilities of interest ratesprimarily from inventory changes in the ICG Markets businesses.businesses and updates to reflect changes in volatilities.
Quarter-end and Average Trading VAR and Trading and Credit Portfolio VAR
| | | Third Quarter | | Second Quarter | | Third Quarter | | Third Quarter | | Second Quarter | | Third Quarter |
| In millions of dollars | In millions of dollars | September 30, 2022 | 2022 Average | June 30, 2022 | 2022 Average | September 30, 2021 | 2021 Average | In millions of dollars | September 30, 2023 | 2023 Average | June 30, 2023 | 2023 Average | September 30, 2022 | 2022 Average |
| Interest rate | Interest rate | $ | 109 | | $ | 113 | | $ | 122 | | $ | 94 | | $ | 65 | | $ | 61 | | Interest rate | $ | 109 | | $ | 102 | | $ | 109 | | $ | 129 | | $ | 109 | | $ | 113 | |
| Credit spread | Credit spread | 60 | | 80 | | 69 | | 70 | | 62 | | 73 | | Credit spread | 80 | | 68 | | 63 | | 69 | | 60 | | 80 | |
Covariance adjustment(1) | Covariance adjustment(1) | (39) | | (59) | | (45) | | (45) | | (43) | | (42) | | Covariance adjustment(1) | (59) | | (49) | | (48) | | (49) | | (39) | | (59) | |
Fully diversified interest rate and credit spread(2) | Fully diversified interest rate and credit spread(2) | $ | 130 | | $ | 134 | | $ | 146 | | $ | 119 | | $ | 84 | | $ | 92 | | Fully diversified interest rate and credit spread(2) | $ | 130 | | $ | 121 | | $ | 124 | | $ | 149 | | $ | 130 | | $ | 134 | |
| Foreign exchange | Foreign exchange | 14 | | 28 | | 35 | | 36 | | 42 | | 42 | | Foreign exchange | 72 | | 36 | | 20 | | 18 | | 14 | | 28 | |
| Equity | Equity | 32 | | 26 | | 25 | | 24 | | 36 | | 36 | | Equity | 27 | | 23 | | 30 | | 22 | | 32 | | 26 | |
| Commodity | Commodity | 36 | | 37 | | 38 | | 45 | | 36 | | 36 | | Commodity | 28 | | 28 | | 29 | | 37 | | 36 | | 37 | |
Covariance adjustment(1) | Covariance adjustment(1) | (92) | | (94) | | (96) | | (106) | | (103) | | (105) | | Covariance adjustment(1) | (116) | | (89) | | (91) | | (89) | | (92) | | (94) | |
Total trading VAR—all market risk factors, including general and specific risk (excluding credit portfolios)(2) | Total trading VAR—all market risk factors, including general and specific risk (excluding credit portfolios)(2) | $ | 120 | | $ | 131 | | $ | 148 | | $ | 118 | | $ | 95 | | $ | 101 | | Total trading VAR—all market risk factors, including general and specific risk (excluding credit portfolios)(2) | $ | 141 | | $ | 119 | | $ | 112 | | $ | 137 | | $ | 120 | | $ | 131 | |
Specific risk-only component(3) | Specific risk-only component(3) | $ | (2) | | $ | — | | $ | 4 | | $ | (2) | | $ | (2) | | $ | 3 | | Specific risk-only component(3) | $ | (9) | | $ | (9) | | $ | (15) | | $ | (9) | | $ | (2) | | $ | — | |
| Total trading VAR—general market risk factors only (excluding credit portfolios) | Total trading VAR—general market risk factors only (excluding credit portfolios) | $ | 122 | | $ | 131 | | $ | 144 | | $ | 120 | | $ | 97 | | $ | 98 | | Total trading VAR—general market risk factors only (excluding credit portfolios) | $ | 150 | | $ | 128 | | $ | 127 | | $ | 146 | | $ | 122 | | $ | 131 | |
Incremental impact of the credit portfolio(4) | Incremental impact of the credit portfolio(4) | $ | 23 | | $ | 28 | | $ | 7 | | $ | 17 | | $ | 33 | | $ | 38 | | Incremental impact of the credit portfolio(4) | $ | 6 | | $ | 13 | | $ | 33 | | $ | 11 | | $ | 23 | | $ | 28 | |
| Total trading and credit portfolio VAR | Total trading and credit portfolio VAR | $ | 143 | | $ | 159 | | $ | 155 | | $ | 135 | | $ | 128 | | $ | 139 | | Total trading and credit portfolio VAR | $ | 147 | | $ | 132 | | $ | 145 | | $ | 148 | | $ | 143 | | $ | 159 | |
(1) Covariance adjustment (also known as diversification benefit) equals the difference between the total VAR and the sum of the VARs tied to each risk type. The benefit reflects the fact that the risks within individual and across risk types are not perfectly correlated and, consequently, the total VAR on a given day will be lower than the sum of the VARs relating to each risk type. The determination of the primary drivers of changes to the covariance adjustment is made by an examination of the impact of both model parameter and position changes.
(2) The total trading VAR includes mark-to-market and certain fair value option trading positions in ICG, with the exception of hedges to the loan portfolio, fair value option loans and all CVA exposures. Available-for-sale and accrual exposures are not included.
(3) The specific risk-only component represents the level of equity and fixed income issuer-specific risk embedded in VAR.
(4) The credit portfolio is composed of mark-to-market positions associated with non-trading business units, with the CVA relating to derivative counterparties and all associated CVA hedges. FVA and DVA are not included. The credit portfolio also includes hedges to the loan portfolio, fair value option loans and hedges to the leveraged finance pipeline within capital markets origination in ICG.
The table below provides the range of market factor VARs associated with Citi’s total trading VAR, inclusive of specific risk:
| | | | Third Quarter | Second Quarter | Third Quarter | | Third Quarter | Second Quarter | Third Quarter |
| | 2022 | 2022 | 2021 | | 2023 | 2023 | 2022 |
| In millions of dollars | In millions of dollars | Low | High | Low | High | Low | High | In millions of dollars | Low | High | Low | High | Low | High |
| Interest rate | Interest rate | $ | 91 | | $ | 137 | | $ | 79 | | $ | 123 | | $ | 51 | | $ | 76 | | Interest rate | $ | 85 | | $ | 119 | | $ | 102 | | $ | 186 | | $ | 91 | | $ | 137 | |
| Credit spread | Credit spread | 60 | | 99 | | 65 | | 78 | | 62 | | 96 | | Credit spread | 56 | | 80 | | 57 | | 83 | | 60 | | 99 | |
| | Fully diversified interest rate and credit spread | Fully diversified interest rate and credit spread | $ | 118 | | $ | 151 | | $ | 105 | | $ | 147 | | $ | 77 | | $ | 115 | | Fully diversified interest rate and credit spread | $ | 105 | | $ | 138 | | $ | 116 | | $ | 211 | | $ | 118 | | $ | 151 | |
| Foreign exchange | Foreign exchange | 13 | | 43 | | 32 | | 40 | | 38 | | 46 | | Foreign exchange | 12 | | 101 | | 12 | | 24 | | 13 | | 43 | |
| Equity | Equity | 21 | | 33 | | 17 | | 40 | | 24 | | 50 | | Equity | 14 | | 33 | | 15 | | 32 | | 21 | | 33 | |
| Commodity | Commodity | 33 | | 41 | | 33 | | 65 | | 27 | | 55 | | Commodity | 22 | | 31 | | 25 | | 47 | | 33 | | 41 | |
| | Total trading | Total trading | $ | 113 | | $ | 149 | | $ | 102 | | $ | 148 | | $ | 86 | | $ | 120 | | Total trading | $ | 99 | | $ | 150 | | $ | 107 | | $ | 192 | | $ | 113 | | $ | 149 | |
| Total trading and credit portfolio | Total trading and credit portfolio | 134 | | 173 | | 119 | | 155 | | 114 | | 166 | | Total trading and credit portfolio | 111 | | 165 | | 118 | | 200 | | 134 | | 173 | |
Note: No covariance adjustment can be inferred from the above table as the high and low for each market factor will be from different close-of-business dates.
The following table provides the VAR for ICG, excluding the CVA relating to derivative counterparties, hedges of CVA, fair value option loans and hedges to the loan portfolio:
| | | | | |
| In millions of dollars | September 30, 20222023 |
Total—all market risk factors, including
general and specific risk | |
| Average—during quarter | $ | 130117 | |
| High—during quarter | 154148 | |
| Low—during quarter | 11095 | |
Regulatory VAR Back-testing
In accordance with Basel III, Citi is required to perform back-testing to evaluate the effectiveness of its Regulatory VAR model. Regulatory VAR back-testing is the process in which the daily one-day VAR, at a 99% confidence interval, is compared to the buy-and-hold profit and loss (i.e., the profit and loss impact if the portfolio is held constant at the end of the day and re-priced the following day). Buy-and-hold profit and loss represents the daily mark-to-market profit and loss attributable to price movements in covered positions from the close of the previous business day. Buy-and-hold profit and loss excludes realized trading revenue, net interest, fees and commissions, intra-day trading profit and loss and changes in reserves.
Based on a 99% confidence level, Citi would expect two to three days in any one year where buy-and-hold losses exceed the Regulatory VAR. Given the conservative calibration of Citi’s VAR model (as a result of taking the greater of short- and long-term volatilities and fat-tail scaling of volatilities), Citi would expect fewer exceptions under normal and stable market conditions. Periods of unstable market conditions could increase the number of back-testing exceptions.
As of September 30, 2022,2023, there were two back-testing exceptions observed for Citi’s Regulatory VAR in the last 12 months.
OTHER RISKS
For additional information regarding other risks, including Citi’s management of other risks, see “Managing Global Risk—Other Risks” in Citi’s 20212022 Form 10-K.
LIBOR Transition Risk
The Adjustable Interest Rate (LIBOR) Act (the LIBOR Act), enacted earlier this year, provides for the use of a statutory replacement for the overnight, one-month, three-month, six month and 12-month tenors of USD LIBOR in all contracts governed by U.S. law that lack adequate fallback provisions. On July 28, 2022, the Federal Reserve Board published in the Federal Register its proposed rulemaking that would implement the LIBOR Act. The proposal contains the Federal Reserve Board’s recommendation of benchmark replacements for various product types. As required by the LIBOR Act, each proposed replacement rate is based on the Secured Overnight Financing Rate (SOFR).
Citi continues to review the effect of the LIBOR Act and the Federal Reserve Board’s proposal and monitor its ongoing rulemaking process, which is expected to facilitate the transition to replacement rates for Citi’s USD LIBOR-linked securities, loans and contracts without fallbacks or fallbacks based on USD LIBOR that are governed by U.S. law and yet to be remediated.
For additional information about Citi’s actions to address a transition away from and discontinuance of LIBOR, see “Managing Global Risk—Other Risks—LIBOR Transition Risk” in Citi’s 2021 Form 10-K. For information about Citi’s LIBOR transition risks, see “Risk Factors—Other Risks” in the 2021 Form 10-K.
Country Risk
Top 25 Country Exposures
The following table presents Citi’s top 25 exposures by country (excluding the U.S.) as of September 30, 2022.2023. (Including the U.S., the total exposure as of September 30, 2022 to theCiti’s top 25 countriesexposures by country would represent approximately 97%98% of Citi’s exposure to all countries.countries as of September 30, 2023.)
For purposes of the table, loan amounts are reflected in the country where the loan is booked, which is generally based on the domicile of the borrower. For example, a loan to a Chinese subsidiary of a Switzerland-based corporation will generally be categorized as a loan in China. In addition, Citi has developed regional booking centers in certain countries,
most significantly in the United Kingdom (U.K.) and Ireland, in order to more efficiently serve its corporate customers. As an example, with respect to the U.K., only 38%39% of corporate loans presented in the table below are to U.K. domiciled entities (40%(39% for unfunded commitments), with the balance of the loans predominately to European domiciled counterparties. Approximately 88%89% of the total U.K. funded loans and 89%90% of the total U.K. unfunded commitments were investment grade as of September 30, 2022.2023.
Trading account assets and investment securities are generally categorized based on the domicile of the issuer of the security of the underlying reference entity. For additional information on the assets included in the table, see the footnotes to the table below.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| In billions of dollars | ICG
loans | PBWM loans(1) | Legacy Franchises loans | Loans transferred to HFS(7) | Other funded(2) | Unfunded(3) | Net MTM on derivatives/repos(4) | Total hedges (on loans and CVA) | Investment securities(5) | Trading account assets(6) | Total
as of
3Q22 | Total
as of
2Q22 | Total
as of
3Q21 | Total
as a %
of Citi
as of
3Q22 |
| United Kingdom | $ | 33.9 | | $ | 5.3 | | $ | — | | $ | — | | $ | 2.6 | | $ | 38.1 | | $ | 16.0 | | $ | (5.3) | | $ | 3.2 | | $ | (0.8) | | $ | 93.0 | | $ | 95.3 | | $ | 111.6 | | 5.3 | % |
| Mexico | 7.7 | | 0.1 | | 20.7 | | | 0.3 | | 7.9 | | 1.5 | | (1.6) | | 17.4 | | 2.3 | | 56.3 | | 57.3 | | 60.0 | | 3.2 | |
| Ireland | 14.9 | | — | | — | | — | | 3.9 | | 30.5 | | 0.5 | | (0.2) | | — | | 0.7 | | 50.3 | | 50.4 | | 45.3 | | 2.8 | |
| Hong Kong | 10.8 | | 20.1 | | — | | — | | 0.5 | | 7.0 | | 2.1 | | (1.7) | | 10.3 | | 1.1 | | 50.2 | | 49.1 | | 52.8 | | 2.8 | |
| Singapore | 8.8 | | 18.5 | | — | | — | | 0.3 | | 5.8 | | 1.1 | | (0.7) | | 8.8 | | 1.9 | | 44.5 | | 47.6 | | 46.0 | | 2.5 | |
| Brazil | 11.6 | | — | | — | | — | | 0.1 | | 3.3 | | 6.5 | | (0.9) | | 5.7 | | 3.5 | | 29.8 | | 28.5 | | 24.4 | | 1.7 | |
| India | 7.1 | | — | | — | | 3.4 | | 0.7 | | 4.7 | | 1.1 | | (1.0) | | 8.6 | | 1.0 | | 25.6 | | 27.7 | | 30.3 | | 1.4 | |
| South Korea | 3.6 | | — | | 8.4 | | — | | 0.2 | | 1.5 | | 1.4 | | (0.8) | | 8.2 | | 0.3 | | 22.8 | | 25.5 | | 34.2 | | 1.3 | |
| Germany | 0.4 | | — | | — | | — | | 0.2 | | 5.9 | | 7.0 | | (3.7) | | 7.6 | | 3.0 | | 20.4 | | 21.9 | | 14.4 | | 1.2 | |
| China | 5.8 | | — | | 3.0 | | — | | 0.8 | | 1.7 | | 1.5 | | (1.0) | | 6.5 | | 0.8 | | 19.1 | | 18.8 | | 20.2 | | 1.1 | |
| Japan | 1.6 | | — | | — | | — | | — | | 3.7 | | 5.5 | | (2.7) | | 4.2 | | 5.6 | | 17.9 | | 12.1 | | 19.3 | | 1.0 | |
| Jersey | 2.5 | | 3.5 | | — | | — | | — | | 10.1 | | 0.2 | | (0.2) | | — | | — | | 16.1 | | 16.8 | | 14.9 | | 0.9 | |
| United Arab Emirates | 7.3 | | 1.5 | | — | | — | | 0.7 | | 4.0 | | 0.3 | | (0.4) | | 2.4 | | — | | 15.8 | | 15.9 | | 16.6 | | 0.9 | |
| Canada | 1.6 | | 1.5 | | — | | — | | 0.1 | | 6.3 | | 1.9 | | (1.7) | | 3.6 | | 2.5 | | 15.8 | | 16.1 | | 16.9 | | 0.9 | |
Australia(8) | 6.9 | | 0.4 | | — | | — | | — | | 4.9 | | 1.8 | | (0.9) | | 0.8 | | 0.6 | | 14.5 | | 15.2 | | 17.7 | | 0.8 | |
| Taiwan | 4.6 | | — | | — | | 7.5 | | 0.1 | | 1.1 | | 0.9 | | (0.1) | | 0.1 | | 0.2 | | 14.4 | | 14.9 | | 17.0 | | 0.8 | |
| Poland | 2.8 | | — | | 1.3 | | | — | | 2.2 | | 1.4 | | (0.1) | | 4.8 | | 0.1 | | 12.5 | | 13.3 | | 11.2 | | 0.7 | |
| Malaysia | 1.3 | | — | | — | | 2.8 | | 0.1 | | 0.8 | | 0.2 | | (0.1) | | 3.0 | | (0.1) | | 8.0 | | 8.1 | | 8.2 | | 0.5 | |
| Thailand | 1.2 | | — | | — | | 2.4 | | — | | 1.8 | | 0.1 | | — | | 1.9 | | — | | 7.4 | | 7.6 | | 8.0 | | 0.4 | |
| Indonesia | 1.9 | | — | | — | | 0.5 | | — | | 1.2 | | 1.0 | | (0.1) | | 1.0 | | 0.1 | | 5.6 | | 5.5 | | 5.8 | | 0.3 | |
Philippines(9) | 0.7 | | — | | — | | — | | 0.1 | | 0.2 | | 2.7 | | — | | 1.6 | | — | | 5.3 | | 5.3 | | 4.0 | | 0.3 | |
Russia(10) | 0.9 | | — | | 0.7 | | — | | — | | 0.2 | | 1.4 | | (0.1) | | 1.4 | | 0.1 | | 4.6 | | 5.5 | | 5.5 | | 0.3 | |
| Luxembourg | — | | 0.9 | | — | | — | | — | | — | | 0.4 | | (0.4) | | 3.5 | | — | | 4.4 | | 4.2 | | 5.3 | | 0.2 | |
| South Africa | 1.4 | | — | | — | | — | | — | | 0.5 | | 0.2 | | (0.2) | | 2.3 | | 0.1 | | 4.3 | | 3.4 | | 3.8 | | 0.2 | |
| Italy | 0.3 | | — | | — | | — | | — | | 1.5 | | 1.1 | | (1.9) | | — | | 2.9 | | 3.9 | | 2.7 | | 2.0 | | 0.2 | |
| Total as a % of Citi’s total exposure | | | | | | | 31.8 | % |
| Total as a % of Citi’s non-U.S. total exposure | | | | | | | 91.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| In billions of dollars | ICG
loans | PBWM loans(1) | Legacy Franchises loans | Loans transferred to HFS(7) | Other funded(2) | Unfunded(3) | Net MTM on derivatives/repos(4) | Total hedges (on loans and CVA) | Investment securities(5) | Trading account assets(6) | Total as of 3Q23 | Total as of 2Q23 | Total as of 3Q22 | Total as a % of Citi as of 3Q23 |
| United Kingdom | $ | 35.9 | | $ | 5.1 | | $ | — | | $ | — | | $ | 1.4 | | $ | 41.9 | | $ | 11.4 | | $ | (4.5) | | $ | 3.6 | | $ | 2.4 | | $ | 97.2 | | $ | 97.6 | | $ | 93.0 | | 5.6 | % |
| Mexico | 9.7 | | 0.1 | | 25.9 | | — | | 0.3 | | 9.2 | | 3.1 | | (3.4) | | 23.0 | | 1.3 | | 69.2 | | 68.9 | | 56.3 | | 4.0 | |
| Ireland | 14.4 | | — | | — | | — | | 0.9 | | 33.0 | | 0.2 | | (0.2) | | — | | 0.7 | | 49.0 | | 49.9 | | 50.3 | | 2.8 | |
| Hong Kong | 8.7 | | 20.0 | | — | | — | | 0.2 | | 5.0 | | 2.1 | | (0.5) | | 8.6 | | 0.1 | | 44.2 | | 46.0 | | 50.2 | | 2.5 | |
| Singapore | 9.0 | | 17.8 | | — | | — | | 0.4 | | 7.2 | | 1.0 | | (0.5) | | 5.9 | | 1.5 | | 42.3 | | 43.9 | | 44.5 | | 2.4 | |
| Brazil | 13.0 | | — | | — | | — | | — | | 2.8 | | 7.9 | | (1.1) | | 7.3 | | 2.9 | | 32.8 | | 31.0 | | 29.8 | | 1.9 | |
| India | 7.2 | | — | | — | | — | | 0.6 | | 3.9 | | 0.9 | | (0.6) | | 9.0 | | 1.3 | | 22.3 | | 23.6 | | 25.6 | | 1.3 | |
| South Korea | 3.7 | | — | | 5.7 | | — | | 0.1 | | 1.4 | | 0.8 | | (0.7) | | 9.0 | | 0.9 | | 20.9 | | 22.4 | | 22.8 | | 1.2 | |
| China | 5.8 | | — | | 0.8 | | — | | 0.6 | | 1.2 | | 1.9 | | (1.2) | | 7.9 | | 1.6 | | 18.6 | | 18.2 | | 19.1 | | 1.1 | |
| Germany | 0.4 | | — | | — | | — | | 0.3 | | 6.7 | | 7.9 | | (3.8) | | 7.9 | | (2.1) | | 17.3 | | 18.8 | | 20.4 | | 1.0 | |
| Canada | 1.7 | | 1.5 | | — | | — | | 0.1 | | 7.2 | | 2.1 | | (2.0) | | 3.1 | | 2.8 | | 16.5 | | 16.4 | | 15.8 | | 0.9 | |
| Australia | 8.4 | | 0.4 | | — | | — | | — | | 6.3 | | 0.8 | | (1.4) | | 0.6 | | 1.4 | | 16.5 | | 15.7 | | 14.5 | | 0.9 | |
| United Arab Emirates | 6.3 | | 1.5 | | — | | — | | 0.1 | | 4.8 | | 0.3 | | (0.3) | | 3.7 | | — | | 16.4 | | 16.2 | | 15.8 | | 0.9 | |
| Japan | 1.5 | | — | | — | | — | | — | | 3.6 | | 5.3 | | (1.9) | | 4.5 | | 2.9 | | 15.9 | | 13.2 | | 17.9 | | 0.9 | |
| Poland | 2.9 | | — | | 1.4 | | — | | — | | 2.8 | | 0.9 | | (0.2) | | 5.1 | | 0.1 | | 13.0 | | 14.1 | | 12.5 | | 0.7 | |
| Jersey | 2.6 | | 2.7 | | — | | — | | — | | 6.9 | | — | | (0.1) | | — | | — | | 12.1 | | 11.5 | | 16.1 | | 0.7 | |
| Indonesia | 2.1 | | — | | — | | 0.6 | | — | | 1.0 | | 1.4 | | (0.1) | | 1.0 | | 0.1 | | 6.1 | | 6.4 | | 5.6 | | 0.3 | |
| Taiwan | 4.0 | | — | | — | | — | | — | | 0.8 | | 0.5 | | (0.1) | | 0.3 | | (0.1) | | 5.4 | | 14.0 | | 14.4 | | 0.3 | |
| Malaysia | 1.1 | | — | | — | | — | | 0.1 | | 0.8 | | 0.1 | | (0.1) | | 3.1 | | 0.2 | | 5.3 | | 4.9 | | 8.0 | | 0.3 | |
| Philippines | 0.6 | | — | | — | | — | | 0.1 | | 0.2 | | 2.4 | | (0.2) | | 2.2 | | (0.1) | | 5.2 | | 5.2 | | 5.3 | | 0.3 | |
| Luxembourg | 0.2 | | 0.8 | | — | | — | | — | | 0.1 | | 0.4 | | (0.3) | | 3.6 | | 0.1 | | 4.9 | | 5.2 | | 4.4 | | 0.3 | |
| South Africa | 1.5 | | — | | — | | — | | — | | 0.7 | | 0.1 | | (0.2) | | 2.2 | | 0.3 | | 4.6 | | 4.5 | | 4.3 | | 0.3 | |
| Czech Republic | 0.8 | | — | | — | | — | | — | | 0.8 | | 2.1 | | — | | 0.7 | | 0.1 | | 4.5 | | 5.2 | | 3.2 | | 0.3 | |
| Chile | 1.0 | | — | | — | | — | | 2.2 | | 0.1 | | 0.2 | | — | | — | | — | | 3.5 | | 3.8 | | 3.2 | | 0.2 | |
| Italy | 0.4 | | — | | — | | — | | — | | 1.7 | | 1.3 | | (1.8) | | — | | 1.9 | | 3.5 | | 5.2 | | 3.9 | | 0.2 | |
| Total as a % of Citi’s total exposure | | | | | | | 31.3 | % |
| Total as a % of Citi’s non-U.S. total exposure | | | | | | | 90.1 | % |
(1) PBWM loans reflect funded loans, including those related to the Private bank, net of unearned income. As of September 30, 2022,2023, Private bank loans in the table above totaled $21.3$19.3 billion, concentrated in Singapore ($5.45.1 billion), the U.K. ($5.15.0 billion) and Hong Kong ($4.94.3 billion).
(2) Other funded includes other direct exposures such as accounts receivable and investments accounted for under the equity method.
(3) Unfunded exposure includes unfunded corporate lending commitments, letters of credit and other contingencies.
(4) Net mark-to-market (MTM) counterparty risk on OTC derivatives and securities lending/borrowing transactions (repos). Exposures are shown net of collateral and inclusive of CVA. Also includes margin loans.
(5) Investment securities include debt securities available-for-sale,AFS, recorded at fair market value, and debt securities held-to-maturity,HTM, recorded at amortized cost.
(6) Trading account assets are shown on a net basis and include issuer risk on cash products and derivative exposure where the underlying reference entity/issuer is
located in that country.
(7) September 30, 20222023, June 30, 2023 and JuneSeptember 30, 2022 include Legacy Franchises loans reclassified to HFS as a result of Citi’s agreement to sell its consumer banking business in each applicable country. For additional information, see “Legacy Franchises” above and Note 2.
(8) September 30, 2021 includes
Legacy Franchises loans reclassified to HFS as a result of Citi’s agreement to sell its consumer banking business in Australia, which closed on June 1, 2022. For additional information, see “Legacy Franchises” above and Note 2.
(9) June 30, 2022 includes Legacy Franchises loans reclassified to HFS as a result of Citi’s agreement to sell its consumer banking business in the Philippines, which closed on August 1, 2022. For additional information, see “Legacy Franchises” above and Note 2.
(10) September 30, 2022 includes approximately $250 million of Russian government securities pledged as collateral to clearing houses. Given the geopolitical uncertainty in Russia, it is no longer possible to conclude, with a well-founded basis, the collectability of such pledged collateral in the Russian legal system in the event of a clearing house default.
Russia
Introduction
In Russia, Citi has operatedCiti’s remaining operations are conducted through both its ICG and Legacy Franchisessegments. Citi continues to monitor the war in Ukraine, related sanctions and economic conditions and continues to mitigate its Russia exposures and risks as appropriate..
As part of previously disclosed plans, Citi intends to wind downhas ended nearly all of its consumer, local commercial andthe institutional banking businessesservices it offered in Russia, with the country. Asremaining services only those necessary to fulfill its remaining legal and regulatory obligations. In addition, Citi has significantly reduced its Legacy Franchises loan portfolio in Russia since September 2022, largely due to loan portfolio sales and its entry into a result,credit card referral agreement with a Russian bank. Citi has ceased soliciting any new business or new clients in Russia. Citi will continue to manage its existing legal and regulatory commitments and obligations, as well as support its
employees, during this period. For additional information, see “Citi’s Wind-Down of Its Russia Businesses”Operations” below.
Citi continues to monitor the war in Ukraine, related sanctions and economic conditions and continues to mitigate its Russia exposures and risks as appropriate.
For additional information about Citi’s risks related to its Russia exposures, see “Forward-Looking Statements” below and “Risk Factors—Market-Related Risk,” “—Operational Risks” and “—Other Risks” in Citi’s 20212022 Form 10-K.
Impact of Russia’s Invasion of Ukraine on Citi’s Businesses
Russia-related Balance Sheet Exposures
Citi’s remaining domestic operations in Russia are conducted through a subsidiary of Citibank, AO Citibank, which uses the Russian ruble as its functional currency.
The following table summarizes Citi’s exposures related to its Russia operations:
| | In billions of U.S. dollars | In billions of U.S. dollars | September 30, 2022 | June 30, 2022 | December 31, 2021 | Change 3Q22 vs. 2Q22 | | In billions of U.S. dollars | September 30, 2023 | June 30, 2023 | September 30, 2022 | Change 3Q23 vs. 2Q23 |
| Loans | Loans | $ | 1.6 | | $ | 2.5 | | $ | 2.9 | | $ | (0.9) | | | Loans | $ | 0.2 | | $ | 0.3 | | $ | 1.6 | | $ | (0.1) | |
Investment securities(1) | Investment securities(1) | 1.4 | | 1.5 | | 1.5 | | (0.1) | | | Investment securities(1) | 0.4 | | 0.6 | | 1.4 | | (0.2) | |
Net MTM on derivatives/repos(2) | Net MTM on derivatives/repos(2) | 1.4 | | 1.3 | | 0.4 | | 0.1 | | | Net MTM on derivatives/repos(2) | 1.2 | | 2.0 | | 1.4 | | (0.8) | |
| Total hedges (on loans and CVA) | Total hedges (on loans and CVA) | (0.1) | | (0.2) | | (0.1) | | 0.1 | | | Total hedges (on loans and CVA) | (0.1) | | (0.1) | | (0.1) | | — | |
Unfunded(3) | Unfunded(3) | 0.2 | | 0.3 | | 0.7 | | (0.1) | | | Unfunded(3) | — | | — | | 0.2 | | — | |
| Trading accounts assets | Trading accounts assets | 0.1 | | 0.1 | | — | | — | | | Trading accounts assets | — | | — | | 0.1 | | — | |
Country risk exposure (included in Top 25 Country Exposures) | $ | 4.6 | | $ | 5.5 | | $ | 5.4 | | $ | (0.9) | | | |
| Country risk exposure | | Country risk exposure | $ | 1.7 | | $ | 2.8 | | $ | 4.6 | | $ | (1.1) | |
Cash on deposit and placements(4) | Cash on deposit and placements(4) | 3.0 | | 2.5 | | 1.0 | | 0.5 | | | Cash on deposit and placements(4) | 0.6 | | 0.9 | | 3.0 | | (0.3) | |
Reverse repurchase agreements(2) | — | | — | | 1.8 | | — | | | |
Deposit Insurance Agency(5) | | Deposit Insurance Agency(5) | 3.5 | | 2.8 | | — | | 0.7 | |
Total third-party exposure(5)(6) | Total third-party exposure(5)(6) | $ | 7.6 | | $ | 8.0 | | $ | 8.2 | | $ | (0.4) | | | Total third-party exposure(5)(6) | $ | 5.8 | | $ | 6.5 | | $ | 7.6 | | $ | (0.7) | |
Additional exposures to Russian counterparties that are not held by the Russian subsidiary | Additional exposures to Russian counterparties that are not held by the Russian subsidiary | 0.3 | | 0.4 | | 1.6 | | (0.1) | | | Additional exposures to Russian counterparties that are not held by the Russian subsidiary | 0.1 | | 0.1 | | 0.3 | | — | |
Total Russia exposure(6)(7) | Total Russia exposure(6)(7) | $ | 7.9 | | $ | 8.4 | | $ | 9.8 | | $ | (0.5) | | | Total Russia exposure(6)(7) | $ | 5.9 | | $ | 6.6 | | $ | 7.9 | | $ | (0.7) | |
(1) Investment securities include debt securities available-for-sale (AFS),AFS, recorded at fair market value, primarily local government debt securities. There were no impairment losses recognized during the second and third quarters of 2022.
(2) Net mark-to-market (MTM) on OTC derivatives and securities lending/borrowing transactions (repos). Effective from 2Q22, reverseReverse repurchase agreements have beenare shown gross of collateral and reclassified toare included in net MTM on derivatives/repos in the table above, as netting of collateral for Russia-related reverse repurchase agreements was removed.removed in the second quarter of 2022. This removal was due to the inability to conclude, with a well-founded basis, the enforceability of contractual rights in the Russian legal system in the event of a counterparty default, given the geopolitical uncertainty caused by the war in Ukraine. As this exposure was already included in Total third-party exposure, the Total Russia exposure was not impacted by this reclassification.
(3) Unfunded exposure consists of unfunded corporate lending commitments, letters of credit and other contingencies.
(4) Cash on deposit and placements are primarily with the Central Bank of Russia and have increased primarilyforeign financial institutions.
(5) Represents dividends received by Citi in its role as custodian for investor clients in Russia, which Citi is required by local regulation to hold at the Deposit Insurance Agency. Citi is unable to remit these funds to clients due to borrower paydowns as risk mitigation activities have reduced AO Citibank’s loan portfolio.restrictions imposed by the Russian government.
(5)(6) The majority of AO Citibank’s third-party exposures was funded with the dividends under footnote 5 and domestic deposit liabilities from both corporate and personal banking clients.
(6)(7) Citigroup’s currency translation adjustment (CTA)CTA loss included in its Accumulated other comprehensive income (AOCI)AOCI related to its indirect subsidiary, AO Citibank, is excluded from the above table, because the CTA loss is not held in AO Citibank and would be recognized in Citigroup’s earnings only upon either the substantial liquidation or a loss of control of AO Citibank. Citi has separately described these risks in “Deconsolidation Risk” below.
During the third quarter of 2022, Citi continued to reduce its operations in Russia and2023, Citi’s Russia-related exposures resulting in a net decrease in Total Russia exposure of $0.5decreased by $0.7 billion, as shown in the table above, as well as a change in composition of exposure as mitigation efforts have reduced Citi’s third-party credit risk. Depreciation of the ruble against the U.S. dollar resulted in aabove. The decrease in exposure of $0.7 billion, partially offset by a $0.2 billion increase in exposure in local currency terms, driven by earnings plus ongoing portfolio reductions, net proceeds of which are deposited with the Central Bank of Russia.
Citi’s continued risk mitigation efforts include ICG borrower paydowns and limiting extensions of new credit. ICG’s credit exposure also reflected a shift to a higher proportion of stronger credit names, including a higher proportion of subsidiaries of multinational companies that are headquartered outside of Russia, primarily in the U.S. and Europe. The decline in overall exposure was also driven by a reduction in exposures to Russian counterparties not held by AO Citibank.
Citi’s net investment in Russia was approximately $1.3$0.7 billion as of September 30, 2022 (compared to $1.2 billion as of June 30, 2022). The increase was primarily driven by earnings generated by AO Citibank during the quarter, partially offset by depreciation of the ruble against the U.S. dollar. A portionDuring the period, inflows from dividends received from Russian corporations on behalf of Citi’s net investment was hedged for foreign currency depreciationclients were fully offset by deposit outflows and tax payments to local authorities. Approximately 68% of Citi’s remaining exposures in Russia are trapped dividends that Citi cannot remit to its clients due to restrictions imposed by the Russian government, of which $3.5 billion is held with the Deposit Insurance Agency as of September 30, 2022, using forward foreign exchange contracts executed with international peer banks.2023.
Citi’s net investment in Russia was approximately $1.0 billion as of September 30, 2023 (down slightly from $1.1 billion as of June 30, 2023). Citi hedges its ruble/USD spot FX exposure in AOCI through the purchase of FX derivatives. The ongoing mark-to-market of the hedging derivatives is also reported in AOCI. When the ruble depreciates against the USD, the USD equivalent value of Citigroup’s investment in AO Citibank also declines. This change in value is offset by the change in value of the hedging instrument (FX derivative). Going forward, Citi may record devaluations on its net ruble-denominated assets in earnings, without the benefit from a change in the fair value of derivative positions used to economically hedge the exposures. In the event of a loss of control of AO Citibank, Citi would be required to write off its net investment of approximately $1.3 billion (compared to $1.2 billion as of June 30, 2022), recognize a pretax CTA loss of approximately $1.0 billion through earnings (compared to $0.9 billion as of June 30, 2022), and recognize a loss of $0.3 billion (compared to $0.4 billion as of June 30, 2022) on intercompany liabilities owed by AO Citibank to other Citi entities outside Russia (see “Deconsolidation Risk” below).
3Q22 Earnings and Other Impacts on Citi’s Businesses
Citi’s ICG, PBWM and Legacy Franchises segments and Corporate/Other werehave been impacted by various macroeconomic factors and volatilities, including Russia’s invasion of Ukraine and its direct and indirect impact on the European and global economy.economies. For a broader discussion of these factors and volatilities on Citi’s businesses, see “Executive Summary” and each business’s results of operations above.
As of September 30, 2022,2023, Citigroup’s ACL included a $1.2$0.1 billion remaining credit reserve for Citi’s direct and indirect Russian exposure (down from $1.6counterparties (compared to $0.2 billion at June 30, 2022), consisting of approximately $0.5 billion (compared to $0.8 billion at June 30, 2022) related to Citi’s direct exposures to Russian counterparties and approximately $0.7 billion (compared to $0.8 billion at June 30, 2022) related to the impact of the war in Ukraine on the broader global macroeconomic environment.2023).
Citi’s Wind-Down of Its Russia Operations
In August 2022, Citi disclosed its decision to wind down its Russia consumer, and local commercial and institutional banking businesses, including actively pursuing portfolio sales. In connection with thethis wind-down, plan, Citi expects to incurhas incurred approximately $170$55 million to-date in costs (excluding the impactcharges, largely from any portfolio sales), primarily over the next 18 months, largely driven by restructuring, vendor termination fees and other related charges.
On October 28, 2022, Citi entered into an agreement to sell a portfolio of ruble-denominated personal installment loans, totaling approximately $345 million in outstanding loan balances as of the third quarter of 2022, to Uralsib, a Russian commercial bank. Citi expects to incur a loss of approximately $35an additional approximate $85 million as a result ofin estimated charges (approximately $10 million in ICG and $65 million in Legacy Franchises, and $10 million in Corporate/Other excluding the sale, which is expected to close in the fourth quarter of 2022. In connection with theimpact from any portfolio sale, Citi also entered into a referral agreement to transfer to Uralsib a portfolio of ruble-denominated credit card loans, subject to customer consents. The outstanding card loans balancesales). This estimate was approximately $320 million as ofrevised down during the third quarter from $180 million at June 30, 2023. During the third quarter, as part of 2022. Citi will referthe previously disclosed cards referral agreement with a Russian bank, approximately $26 million of credit card customers, who at the customers’ sole discretion will be eligiblereceivables was settled upon referral and refinanced. For additional information about Citi’s continued efforts to refinance their outstanding card loan balances with Uralsib.
Moreover, Citi will be ending nearly all of the institutional banking services it offersreduce its operations and exposure in Russia, by the end of the first quarter of 2023. Going forward,see Note 2 and “Risk Factors” and “Managing Global Risk—Other Risks—Country Risk—Russia” in Citi’s only operations in Russia will be those necessary to fulfill its remaining legal and regulatory obligations. At this time, Citi expects to incur estimated costs of approximately $100 million in connection with this action. The wind-down of the institutional banking business could accelerate the substantial liquidation of AO Citibank, and therefore impact the timing of the release of the related CTA loss into earnings.
2022 Form 10-K.
Deconsolidation Risk
Citi’s remaining operations in Russia subject it to various risks, including, among others, foreign currency volatility, including appreciationsappreciation or devaluations; business restrictions;devaluation; restrictions arising from retaliatory Russian laws and regulations on the conduct of its business; sanctions or asset freezes; or other deconsolidation events (for additional information, see “Risk Factors—Other Risks” in Citi’s 20212022 Form 10-K). Examples of triggers that may result in deconsolidation of AO Citibank include voluntary or forced sale of ownership or loss of control due to actions of relevant governmental authorities, including expropriation (i.e., the entity becomes subject to the complete control of a government, court, administrator, trustee or regulator); revocation of banking license; and loss of ability to elect a board of directors or appoint members of senior management. As of September 30, 2022,2023, Citi continued to consolidate AO Citibank because none of the deconsolidation factors were triggered.
As discussed above, inIn the event ofCiti deems there is a loss of control, for example, through expropriation of AO Citibank Russia, Citi’s foreign entity in Russia, Citi would be required to (i) write off itsthe net investment of approximately $1.3$1.0 billion (compared to $1.2(down slightly from $1.1 billion as of June 30, 2022)2023), (ii) recognize a CTA loss of approximately $1.0$1.6 billion through earnings (compared to $0.9$1.6 billion as of June 30, 2022),2023) through earnings and (iii) recognize a loss of $0.3$0.6 billion (compared to $0.4 billion as of June 30, 2022)2023) on intercompany liabilities owed by AO Citibank to other Citi entities outside Russia. In the sole event of a substantial
liquidation, as opposed to a loss of control, Citi would be required to recognize the CTA loss of approximately $1.0$1.6 billion through earnings and would evaluate its remaining net investment as circumstances evolve.
Citi as Paying Agent for Russian-relatedRussia-related Clients
Citi serves or served as paying agent on bonds issued by various entities in Russia, including Russian corporate clients. Citi’s role as paying agent is administrative. In itsthis role, as paying agent, Citi acts as an agent of its client, the bond issuer, receiving interest and principal payments from the bond issuer and then making payments to international central securities depositories (e.g., Depository Trust Company, Euroclear, Clearstream). The international central securities depositories (ICSDs) make payments to those participants or account holders (e.g., broker/dealers) that have clients who are investors in the applicable bonds (i.e., bondholders). As a paying agent, Citi generally does not have information about the identity of the bondholders. Citi may be exposed to risks due to its responsibilities for receiving and processing payments on behalf of its clients as a result of sanctions or other governmental requirements and prohibitions. To mitigate operational and sanctions risks, Citi has established policies, procedures and controls for client relationships and payment processing to help ensure compliance with U.S., U.K., EU and other jurisdictions’ sanctions laws.
These processes may require Citi to delay or withhold the processing of payments as a result of sanctions on the bond issuer. Citi is also prevented from making payments to accounts on behalf of bondholders should the ICSDs disclose to Citi the presence of sanctioned bondholders. In both instances, Citi is generally required to segregate, restrict or
block the funds until applicable sanctions are lifted or the payment is otherwise authorized under applicable law.
Reputational Risks
Citi has continued its efforts to enhance and protect its reputation with its colleagues, clients, customers, investors, regulators and the public. Citi’s response to the war in Ukraine, including any action or inaction, may have a negative impact on Citi’s reputation with some or all of these parties.
For example, Citi is exposed to reputational risk as a result of its current presence in Russia and association with Russian individuals or entities, whether subject to sanctions or not, including Citi’s inability to support its global clients in Russia, which could adversely affect its broader client relationships and businesses; current involvement in transactions or supporting activities involving Russian assets or interests; failure to correctly interpret and apply laws and regulations, including those related to sanctions; perceived misalignment of Citi’s actions to its stated strategy in Russia; and the reputational impact from Citi’s activity and engagement with Ukraine or with non-Russian clients exiting their Russia businesses. Citi has considered the potential for reputation risk and taken actions to mitigate such risks. Citi established a Russia Special Review Process with management’s Reputation Risk Committee with oversight for significant Russia-related reputation risks and completed a number of reputation risk reviews of matters with a Russian nexus.
While Citi announced its intention to wind down its businesses in Russia, Citi will continue to manage those operations during the wind-down process and will be required to maintain certain limited operations to fulfill its remaining legal and regulatory obligations. Also, sanctions and sanctions compliance are highly complex and may change over time and result in increased operational risk. Failure to fully comply with relevant sanctions or the application of sanctions where they should not be applied may negatively impact Citi’s reputation. In addition, Citi currently performs services for, conducts business with or deals in non-sanctioned Russian-owned businesses and Russian assets. This has attracted, and will likely continue to attract, negative attention, despite the previously disclosed plan to wind down nearly all its activities in the country, cessation of new business and client originations, and reduction of other exposures.
Citi’s continued presence or divestiture of businesses in Russia could also increase its susceptibility to cyberattacks that could negatively impact its relationships with clients and customers, harm its reputation, increase its compliance costs and adversely affect its business operations and results of operations. For additional information on operational and cyber risks, see “Risk Factors—Operational Risk” in Citi’s 20212022 Form 10-K.
Board’s Role in Overseeing Related Risks
The Citi Board of Directors (Board) and the Board’s Risk Management Committee (RMC) and its other Committees have received and continue to receive regular reports from senior management regarding the war in Ukraine and its impact on Citi’s operations in Russia, Ukraine and elsewhere, as well as the war’s broader geopolitical, macroeconomic and reputational impacts. In addition to receiving regular briefings from management, the full Board has routinely been invited to attend portions of the RMC meetings for discussions related to the war in Ukraine, including with respect to Citi’s risk exposures and stress testing. The reports to the Board and its Committees from senior management who represent the impacted businesses and the EMEA region, Independent Risk Management, Finance, Independent Compliance Risk Management, including those individuals responsible for sanctions compliance, and Human Resources, have included detailed information regarding financial impacts, impacts on capital, cybersecurity, strategic considerations, sanctions compliance, employee assistance and reputational risks, enabling the Board and its Committees to properly exercise their oversight responsibilities. In addition, senior management has also provided updates to Citi’s Executive Management Team and the Board, outside of formal meetings, regarding Citi’s Russia-related risks, including with respect to cybersecurity matters.
Ukraine
Citi has continued to operate in Ukraine throughout the war through its ICGbusinesses, serving the local subsidiaries of multinationals, along with local financial institutions and the public sector. Citi employs approximately 230 people in Ukraine and their safety is Citi’s top priority.
All of Citi’s domestic operations in Ukraine are conducted through a subsidiary of Citibank, which uses the Ukrainian hryvnia as its functional currency. Citi’s exposures in Ukraine are not significant enough to be included in the “Top 25 Country Exposures” table above. As of September 30, 2022, these2023, Citi had $1.5 billion of direct exposures amountedrelated to $1.0Ukraine, compared to $1.3 billion unchanged fromas of June 30, 2022, and were exclusively composed of third-party assets held on the Citi Ukraine subsidiary.2023. The increase in exposures reflected a $0.2 billion increase in deposits.
Argentina
Citi operates in Argentina through its ICG businesses. As of September 30, 2022,2023, Citi’s net investment in its Argentine operations was approximately $1.7 billion.$1.9 billion (unchanged from June 30, 2023). Under U.S. GAAP, Citi uses the U.S. dollar as the functional currency for its operations in countries such as Argentina that are deemed highly inflationary under U.S. GAAP.inflationary. Citi uses Argentina’s official markettherefore records the impact of exchange rate to remeasurefluctuations on its net Argentine peso-denominatedpeso (ARS)–denominated assets into the U.S. dollar. Asdirectly in earnings. Accordingly, Citi seeks to reduce its overall ARS exposure in Argentina while complying with local capital and currency exposure limitations.
From Citi’s total net investment in Argentina of approximately $1.9 billion, as of September 30, 2022,2023, Citi’s net ARS exposure was approximately $1.3 billion (compared to $1.6 billion at June 30, 2023). The net ARS exposure has decreased as a result of Citi purchasing an additional approximate $200 million of certain local government bonds during the official Argentine peso exchange rate againstthird quarter (for a total of $500 million in these bonds). These bonds are indexed to the higher of the U.S. dollar was 147.34.(USD) exchange rate or the local inflation index. Citi also originated approximately $50 million of USD-denominated loans during the third quarter. Such bonds and USD-denominated loans may reduce the impact to Citi of a potential currency devaluation in the future, although it remains unclear how effective Citi’s strategies to reduce its ARS exposure may be.
As previously disclosed, the Central Bank of Argentina has continued to maintain certain capital and currency controls that generally restrict Citi’s ability to access U.S. dollars in Argentina and remit earnings from its Argentine operations. As a result, Citi’s net investment in its Argentine operations is likely to continue to increase as Citi generates net income in its Argentine franchise and its earnings cannot be remitted.
Due to the currency controls implemented by the Central Bank of Argentina, certain indirect foreign exchange mechanisms have developed that some Argentine entities may use to obtain U.S. dollars, generally at rates that are significantly higher than Argentina’s official exchange rate. Citibank Argentina is precluded from accessing these alternative mechanisms, and these exchange mechanisms cannot be used to remeasure Citi’s net monetary assets into the U.S. dollar under U.S. GAAP. However, ifCitibank Argentina therefore uses Argentina’s official market exchange rate to remeasure its net ARS assets into the U.S. dollar, which was 350.0 ARS to 1 U.S. dollar as of September 30, 2023. During the third quarter, the Central Bank of Argentina devalued the official exchange rate by 27%, resulting in an approximate $180 million net negative impact to Citi’s net investment in the country. For additional information on this impact to Citi, see “Executive Summary” and “Institutional Clients Group” above.
If Argentina’s official exchange rate further converges with the approximate rate implied by the indirect foreign exchange mechanisms, Citi could incur a significant loss on its capital in Argentina. Current macroeconomic conditions in the country, along with sustained high inflation, low international reserves held by the Central Bank of Argentina and the foreign currency policy decisions following the upcoming general presidential elections in Argentina, may result in an accelerated or steep depreciation of the official exchange rate in the near term. Citi cannot predict future fluctuations in Argentina’s official market exchange rate or to what extent Citi may be able to access U.S. dollars at the official exchange rate in the future.
Citi may economically hedges thehedge foreign currency risk in its net Argentine peso-denominatedARS-denominated assets to the extent possible and prudent using non-deliverable forward (NDF) derivative instruments that are primarily executed outside of Argentina. As of September 30, 2022,2023, the international NDF market had very limited liquidity, resulting in Citi being unableCiti’s inability to economically hedge substantially all of its Argentine pesoARS exposure. Accordingly, and to the extent that Citi does not execute NDF contracts for this unhedged exposure in the future, Citi would record devaluations on its net Argentine peso‐denominatedARS-denominated assets in earnings, without any benefit from a change in the fair value
of derivative positions used to economically hedge the exposure.
Citi continually evaluates its economic exposure to its Argentine counterparties and reserves for changes in credit risk and records mark-to-market adjustments for relevant market risks associated with its Argentine assets. Citi believes it has established an appropriate ACL on its Argentine loans, and appropriate fair value adjustments on Argentine assets and liabilities measured at fair value, for credit and sovereign risks under U.S. GAAP as of September 30, 2022.2023. However, U.S. regulatory agenciesCiti may require Citineed to record additional reserves in the future, increasingresulting in higher ICG’s cost of credit, based on the perceived countryshould there be an increase in transfer risk associated with its Argentine exposures. For additional information on Citi’s emerging markets risks, including those related to its Argentine exposures, see “Risk Factors—Strategic Risks” in Citi’s 20212022 Form 10-K.
SIGNIFICANT ACCOUNTING POLICIES AND SIGNIFICANT ESTIMATES
This section contains a summary of Citi’s most significant accounting policies. Note 1 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K contains a summary of all of Citigroup’s significant accounting policies. These policies, as well as estimates made by management, are integral to the presentation of Citi’s results of operations and financial condition. While all of these policies require a certain level of management judgment and estimates, this section highlights and discusses the significant accounting policies that require management to make highly difficult, complex or subjective judgments and estimates at times regarding matters that are inherently uncertain and susceptible to change (see also “Risk Factors—Operational Risks” in Citi’s 20212022 Form 10-K). Management has discussed each of these significant accounting policies, the related estimates and its judgments with the Audit Committee of the Citigroup Board of Directors.
Valuations of Financial Instruments
Citigroup holds debt and equity securities, derivatives, retained interests in securitizations, investments in private equity and other financial instruments. A substantial portion of these assets and liabilities is reflected at fair value on Citi’s Consolidated Balance Sheet as Trading account assets, Available-for-sale securities and Trading account liabilities.
Citi purchases securities under agreements to resell (reverse repos or resale agreements) and sells securities under agreements to repurchase (repos), a substantial portion of which is carried at fair value. In addition, certain loans, short-term borrowings, long-term debt and deposits, as well as certain securities borrowed and loaned positions that are collateralized with cash, are carried at fair value. Citigroup holds its investments, trading assets and liabilities, and resale and repurchase agreements on Citi’s Consolidated Balance Sheet to meet customer needs and to manage liquidity needs, interest rate risks and private equity investing.
When available, Citi generally uses quoted market prices to determine fair value and classifies such items within Level 1 of the fair value hierarchy established under ASC 820-10, Fair Value Measurement. If quoted market prices are not available, fair value is based uponon internally developed valuation models that use, where possible, current market-based or independently sourced market parameters, such as interest rates, currency rates and option volatilities. Such models are often based on a discounted cash flow analysis. In addition, items valued using such internally generated valuation techniques are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified under the fair value hierarchy as Level 3 even though there may be some significant inputs that are readily observable.
Citi is required to exercise subjective judgments relating to the applicability and functionality of internal valuation models, the significance of inputs or value drivers to the valuation of an instrument and the degree of illiquidity and subsequent lack of observability in certain markets. The fair value of these instruments is reported on Citi’s Consolidated
Balance Sheet with the changes in fair value recognized in either the Consolidated Statement of Income or in AOCI.
Losses on available-for-sale securities whose fair values are less than the amortized cost, where Citi intends to sell the security or could more-likely-than-not be required to sell the security prior to recovery, are recognized in earnings. Where Citi does not intend to sell the security nor could more-likely-than-not be required to sell the security, any portion of the loss that is attributable to credit is recognized as an allowance for credit losses with a corresponding provision for credit losses, and the remainder of the loss is recognized in AOCI. Such losses are capped at the difference between the fair value and amortized cost of the security.
For equity securities carried at cost or under the measurement alternative, decreases in fair value below the carrying value are recognized as impairment in the Consolidated Statement of Income. Moreover, for certain equity method investments, decreases in fair value are only recognized in earnings in the Consolidated Statement of Income if such decreases are judged to be an other-than-temporary impairment (OTTI). AdjudicatingAssessing if the temporary nature of fair value impairmentsimpairment is temporary is also inherently judgmental.
The fair value of financial instruments incorporates the effects of Citi’s own credit risk and the market view of counterparty credit risk, the quantification of which is also complex and judgmental. For additional information on Citi’s fair value analysis, see Notes 6, 2022 and 2123 in this Form 10-Q and Note 1 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
Citi’s Allowance for Credit Losses (ACL)
The table below showspresents Citi’s allowance for credit losses on loans (ACLL) and total ACL as of the third quarter of 2022.2023. For information on the drivers of Citi’s ACL build in the third quarter of 2023, see “3Q22“3Q23 Changes in the ACL” below. For
information on refinement in the ACL estimation approach to
introduce multiple macroeconomic scenarios to the
quantitative component of the ACL, see Note 1. For additional information on Citi’s accounting policy on accounting for credit losses under ASC Topic 326, Financial Instruments—Credit losses;Losses; Current Expected Credit Losses (CECL), see Note 1 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| ACL |
| In millions of dollars | Balance Dec. 31, 2021 | 1Q22
build
(release) | 1Q22
FX/
Other | Balance Mar. 31, 2022 | 2Q22
build
(release) | 2Q22
FX/
Other | Balance Jun. 30, 2022 | 3Q22 build (release) | 3Q22 FX/Other | Balance Sept. 30, 2022 | ACLL/EOP loans Sept. 30, 2022(1) |
| ICG | $ | 2,241 | | $ | 596 | | $ | 5 | | $ | 2,842 | | $ | (76) | | $ | 25 | | $ | 2,791 | | $ | 75 | | $ | (61) | | $ | 2,805 | | |
Legacy Franchises corporate (Mexico SBMM) | 174 | | 5 | | 4 | | 183 | | (3) | | (2) | | 178 | | (34) | | (1) | | 143 | | |
| Total corporate ACLL | $ | 2,415 | | $ | 601 | | $ | 9 | | $ | 3,025 | | $ | (79) | | $ | 23 | | $ | 2,969 | | $ | 41 | | $ | (62) | | $ | 2,948 | | 1.04 | % |
U.S. Cards(1) | $ | 10,840 | | $ | (1,009) | | $ | — | | $ | 9,831 | | $ | 447 | | $ | — | | $ | 10,278 | | $ | 303 | | $ | (2) | | $ | 10,579 | | 7.53 | % |
| Retail banking and Global Wealth | 1,181 | | (53) | | (5) | | 1,123 | | 191 | | (1) | | 1,313 | | $ | 57 | | $ | (1) | | $ | 1,369 | | |
Total PBWM | $ | 12,021 | | $ | (1,062) | | $ | (5) | | $ | 10,954 | | $ | 638 | | $ | (1) | | $ | 11,591 | | $ | 360 | | $ | (3) | | $ | 11,948 | | |
Legacy Franchises consumer | 2,019 | | (151) | | (454) | | 1,414 | | (25) | | 3 | | 1,392 | | 40 | | (19) | | 1,413 | | |
| Total consumer ACLL | $ | 14,040 | | $ | (1,213) | | $ | (459) | | $ | 12,368 | | $ | 613 | | $ | 2 | | $ | 12,983 | | $ | 400 | | $ | (22) | | $ | 13,361 | | 3.74 | % |
| Total ACLL | $ | 16,455 | | $ | (612) | | $ | (450) | | $ | 15,393 | | $ | 534 | | $ | 25 | | $ | 15,952 | | $ | 441 | | $ | (84) | | $ | 16,309 | | 2.54 | % |
| Allowance for credit losses on unfunded lending commitments (ACLUC) | $ | 1,871 | | $ | 474 | | $ | (2) | | $ | 2,343 | | $ | (159) | | $ | 9 | | $ | 2,193 | | $ | (71) | | $ | (33) | | $ | 2,089 | | |
| Total ACLL and ACLUC | $ | 18,326 | | $ | (138) | | $ | (452) | | $ | 17,736 | | $ | 375 | | $ | 34 | | $ | 18,145 | | $ | 370 | | $ | (117) | | $ | 18,398 | | |
Other(2) | 148 | | (6) | | (6) | | 136 | | 27 | | 16 | | 179 | | 83 | | (6) | | 256 | | |
| Total ACL | $ | 18,474 | | $ | (144) | | $ | (458) | | $ | 17,872 | | $ | 402 | | $ | 50 | | $ | 18,324 | | $ | 453 | | $ | (123) | | $ | 18,654 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| ACL |
| In millions of dollars | Balance Dec. 31, 2022 | 1Q23
build
(release) | 1Q23 FX/ Other(1)(4) | Balance Mar. 31, 2023 | 2Q23
build
(release) | 2Q23
FX/
Other | Balance Jun. 30, 2023 | 3Q23 build (release) | 3Q23 FX/Other | Balance Sept. 30, 2023 | ACLL/EOP loans Sept. 30, 2023(2) |
| ICG | $ | 2,715 | | $ | (75) | | $ | 3 | | $ | 2,643 | | $ | (150) | | $ | (3) | | $ | 2,490 | | $ | 101 | | $ | (13) | | $ | 2,578 | | |
Legacy Franchises corporate (Mexico SBMM) | 140 | | (10) | | 7 | | 137 | | (2) | | 5 | | 140 | | 1 | | (2) | | 139 | | |
| Total corporate ACLL | $ | 2,855 | | $ | (85) | | $ | 10 | | $ | 2,780 | | $ | (152) | | $ | 2 | | $ | 2,630 | | $ | 102 | | $ | (15) | | $ | 2,717 | | 0.97 | % |
U.S. Cards(2) | $ | 11,393 | | $ | 536 | | $ | (173) | | $ | 11,756 | | $ | 276 | | $ | (1) | | $ | 12,031 | | $ | 128 | | $ | 1 | | $ | 12,160 | | 7.81 | % |
| Retail banking and Global Wealth | 1,330 | | (29) | | (60) | | 1,241 | | 57 | | 1 | | 1,299 | | (33) | | (1) | | 1,265 | | |
Total PBWM | $ | 12,723 | | $ | 507 | | $ | (233) | | $ | 12,997 | | $ | 333 | | $ | — | | $ | 13,330 | | $ | 95 | | $ | — | | $ | 13,425 | | |
Legacy Franchises consumer | 1,396 | | 13 | | (17) | | 1,392 | | 76 | | 68 | | 1,536 | | (18) | | (31) | | 1,487 | | |
| Total consumer ACLL | $ | 14,119 | | $ | 520 | | $ | (250) | | $ | 14,389 | | $ | 409 | | $ | 68 | | $ | 14,866 | | $ | 77 | | $ | (31) | | $ | 14,912 | | 3.95 | % |
| Total ACLL | $ | 16,974 | | $ | 435 | | $ | (240) | | $ | 17,169 | | $ | 257 | | $ | 70 | | $ | 17,496 | | $ | 179 | | $ | (46) | | $ | 17,629 | | 2.68 | % |
| Allowance for credit losses on unfunded lending commitments (ACLUC) | $ | 2,151 | | $ | (194) | | $ | 2 | | $ | 1,959 | | $ | (96) | | $ | (1) | | $ | 1,862 | | $ | (54) | | $ | (2) | | $ | 1,806 | | |
Other(3) | 243 | | 408 | | (19) | | 632 | | 145 | | (19) | | 758 | | 53 | | (18) | | 793 | | |
| Total ACL | $ | 19,368 | | $ | 649 | | $ | (257) | | $ | 19,760 | | $ | 306 | | $ | 50 | | $ | 20,116 | | $ | 178 | | $ | (66) | | $ | 20,228 | | |
(1) Includes reclassifications to Other assets related to Citi’s agreements to sell certain of its consumer banking businesses. See Notes 2 and 14.
(2) As of September 30, 2022,2023, in U.S. Personal Banking, Branded cards ACLL/EOP loans was 6.2%6.3% and Retail services ACLL/EOP loans was 10.1%11.0%.
(2)(3) Includes ACL on HTM securities and Other assetsand Held-to-maturity debt securities.
(4) Includes a decrease of $352 million from the adoption of ASU 2022-02 related to the recognition and measurement of TDRs under the modified retrospective approach related to PBWM and Legacy Franchises consumer loans as of January 1, 2023. See Notes 1 and 14.
Citi’s reserves for expected credit losses on funded loans and for unfunded lending commitments, standby letters of credit and financial guarantees are reflected on the Consolidated Balance Sheet in the Allowance for credit losses on loans (ACLL) and Other liabilities (for Allowance for credit losses on unfunded lending commitments (ACLUC)), respectively. In addition, CitiCiti’s reserves for expected credit losses on other financial assets carried at amortized cost,
including held-to-maturity securities, reverse repurchase agreements, securities borrowed, deposits with banks and
other financial receivables.receivables are reflected in Other assets. These reserves, together with the ACLL and ACLUC, are referred to as the ACL. Changes in the ACL are reflected as Provision for credit losses in the Consolidated Statement of Income for each reporting period. Citi’s ability to estimate expected credit losses over the reasonable and supportable (R&S) period is based on the
ability to forecast economic activity over an R&S timeframe. The R&S forecast period for consumer and corporate loanscredit exposures is eight quarters.
The ACL is composed of quantitative and qualitative management adjustment components. The quantitative component uses three forward-looking macroeconomic forecast scenarios—base, upside and downside. The qualitative management adjustment component reflects portfolio characteristicsrisks and currentcertain economic conditions not fully captured in the quantitative component. Both the quantitative and qualitative components are further discussed below.
Quantitative Component
Citi estimates expected credit losses for its quantitative component using (i) its comprehensive internal data on loss and default history, (ii) internal credit risk ratings, (iii) external credit bureau and rating agencies information and (iv) reasonable and supportableR&S forecasts of macroeconomic conditions.
For its consumer and corporate portfolios, Citi’s expected credit losses are determined primarily by utilizing models that consider the borrowers’ probability of default (PD), loss given default (LGD) and exposure at default (EAD). The loss likelihood and severity models used for estimating expected credit losses are sensitive to changes in macroeconomic variables, that inform the forecasts,including housing prices, unemployment rate and real GDP, and cover a wide range of geographic, industry, product and business segments.
In addition, Citi’s models determine expected credit losses based on leading credit indicators, including loan delinquencies, changes in portfolio size, default frequency, risk ratings and loss recovery rates, as well as other current economic factors and credit trends, including housing prices, unemployment and gross domestic product (GDP).trends.
Qualitative Component
The qualitative management adjustment component includes among other things, management adjustments to reflect certain portfolio characteristicsrisks that are not fully captured in the quantitative component, such as concentrations, collateral valuation,component. These may include but are not limited to portfolio characteristics, idiosyncratic events, factors not within historical loss data or the economic forecast, uncertainty in the environment and other factors as required by banking supervisory guidance for the ACL. The qualitative management adjustment component also reflects uncertainty around the war in Ukraine and potential global recession, considering macroeconomic and market factors, including inflation, interest rates and commodity prices. The impactprimary examples of these factors to industries and sectors that are more vulnerable was considered. Qualitative reserves also include the potential for normalization inare:
•Normalization of portfolio performance and consumer behavior after recordfrom low losses as a result of government stimulus and market liquidity.liquidity during the COVID-19 pandemic
•Potential impacts on vulnerable industries and regions due to emerging macroeconomic risks and uncertainties, including those related to potential global recession, inflation, interest rates, commodity prices and geopolitical tensions
•Transfer risk associated with exposures outside the U.S. for certain safety and soundness considerations under U.S. banking law
As of the third quarter of 2023, Citi’s qualitative component of the ACL continued to decline quarter-over-quarter. The decline was primarily driven by releases of COVID-19–related uncertainty reserves, as the portfolio continues to normalize toward pre-pandemic levels and as risks are captured in the quantitative component of the ACL. These releases were partially offset by a build for
macroeconomic risks and uncertainties impacting vulnerable industries and regions in the corporate portfolio, including continued high interest rates.
Macroeconomic Variables
Citi considers a multitude of global macroeconomic variables for the base, upside and downside probability-weighted macroeconomic scenario forecasts it uses to estimate the ACL. Citi’s forecasts of the U.S. unemployment rate and U.S. real GDP growth rate represent the key macroeconomic variables that most significantly affect its estimate of the ACL.
The tables below present Citi’s forecasted quarterly average U.S. unemployment rate and year-over-year U.S. real GDP growth rate used in determining the base macroeconomic forecast for Citi’s ACL for each quarterly reporting period from 3Q22 to 3Q23:
| | | | | | | | | | | | | | |
| Quarterly average | |
| U.S. unemployment | 4Q23 | 2Q24 | 4Q24 | 8-quarter average(1) |
| Citi forecast at 3Q22 | 4.3 | % | 4.0 | % | 4.0 | % | 4.0 | % |
| Citi forecast at 4Q22 | 4.7 | | 4.5 | | 4.4 | | 4.4 | |
| Citi forecast at 1Q23 | 4.3 | | 4.6 | | 4.5 | | 4.3 | |
| Citi forecast at 2Q23 | 4.1 | | 4.5 | | 4.5 | | 4.3 | |
| Citi forecast at 3Q23 | 3.9 | | 4.3 | | 4.4 | | 4.2 | |
(1) Represents the average unemployment rate for the rolling, forward-looking eight quarters in the forecast horizon.
| | | | | | | | | | | |
| Year-over-year growth rate(1) |
| Full year |
| U.S. real GDP | 2023 | 2024 | 2025 |
| Citi forecast at 3Q22 | 0.6 | % | 1.9 | % | 2.7 | % |
| Citi forecast at 4Q22 | 0.3 | | 1.5 | | 2.2 | |
| Citi forecast at 1Q23 | 1.0 | | 1.0 | | 2.0 | |
| Citi forecast at 2Q23 | 1.3 | | 0.7 | | 2.0 | |
| Citi forecast at 3Q23 | 2.1 | | 1.0 | | 2.0 | |
(1) The year-over-year growth rate is the percentage change in the real (inflation adjusted) GDP level.
Under the base macroeconomic forecast as of 3Q23, U.S. real GDP growth is expected to decline in the last quarter of 2023 before recovering in 2024, while the unemployment rate is expected to increase modestly over the eight-quarter forecast horizon, broadly returning to pre-pandemic levels.
Scenario Probability Weighting
Citi’s ACL is estimated using three probability-weighted macroeconomic scenarios—base, upside and downside. The macroeconomic scenario weights are calculatedestimated using a statistical model, which, among other factors, takes into consideration key macroeconomic drivers of the ACL, severity of the scenario and other macroeconomic uncertainties and risks. Citi evaluates scenario weights on a quarterly basis. Changes in these factors in future quarters will impact the weights assigned in those quarters.
Citi’s downside scenario incorporates more adverse macroeconomic assumptions than the base scenario assumptions.
Macroeconomic Variables
Citi considers a multitude of macroeconomic variables forscenario. For example, compared to the base upside andscenario, Citi’s downside macroeconomic scenario forecasts it uses to estimate the ACL,reflects a severe recession, including domestic and international variables for its global portfolios and exposures. Citi’s forecasts of the U.S. unemployment rate and U.S. Real GDP growth rate represent the key macroeconomic variables that most significantly affect its estimate of the ACL.
The tables below show Citi’s forecasted quarterly average U.S. unemployment rate and year-over-year U.S. Real GDP growth rate used in determining the base macroeconomic forecast for Citi’s ACL for each quarterly reporting period from 3Q21 to 3Q22:
| | | | | | | | | | | | | | |
| Quarterly average | |
| U.S. unemployment | 4Q22 | 2Q23 | 4Q23 | 8-quarter average(1) |
| Citi forecast at 3Q21 | 3.9 | % | 3.8 | % | 3.8 | % | 4.0 | % |
| Citi forecast at 4Q21 | 3.8 | | 3.7 | | 3.7 | | 3.8 | |
| Citi forecast at 1Q22 | 3.5 | | 3.5 | | 3.5 | | 3.6 | |
| Citi forecast at 2Q22 | 3.6 | | 3.7 | | 3.9 | | 3.7 | |
| Citi forecast at 3Q22 | 3.7 | | 4.0 | | 4.3 | | 4.0 | |
(1) Represents the average unemployment rate for the rolling, forward-looking eight quarters in the forecast horizon.
| | | | | | | | | | | |
| Year-over-year growth rate(1) |
| Full year |
| U.S. Real GDP | 2022 | 2023 | 2024 |
| Citi forecast at 3Q21 | 3.9 | % | 2.1 | % | 1.8 | % |
| Citi forecast at 4Q21 | 4.0 | | 2.2 | | 1.8 | |
| Citi forecast at 1Q22 | 3.3 | | 2.4 | | 2.1 | |
| Citi forecast at 2Q22 | 2.6 | | 1.8 | | 2.0 | |
| Citi forecast at 3Q22 | 1.6 | | 0.6 | | 1.9 | |
(1) The year-over-year growth rate is the percentage change in the Real (inflation adjusted) GDP level.
Under the base macroeconomic forecast as of 3Q22, U.S. Real GDP growth is lower than the 2Q22 forecast, however it is expected to remain strong during the remainder of 2022 but decline in 2023, and the unemployment rate is expected to increase modestly over the forecast horizon, broadly returning to pre-pandemic levels.
3Q22 Changes in the ACL
As further discussed below, in the third quarter of 2022, Citi had a build of $0.4 billion for the ACL for its consumer portfolios and a build of $0.1 billion for its corporate portfolios, for a net ACL build of $0.5 billion. The build was primarily driven by loan growth in consumer portfolios and a deterioration in macroeconomic forecasts primarily impacting the corporate portfolio, partially offset by the continuedan elevated
releaseaverage U.S. unemployment rate of COVID-19–6.8% over the eight-quarter R&S period, with a peak difference of 3.2% in the first quarter of 2025. The downside scenario also reflects a year-over-year U.S. real GDP contraction in 2024 of 2.5%, with a peak quarter-over-quarter difference to the base scenario of 1.2% in the fourth quarter of 2023.
Citi’s ACL is sensitive to the various macroeconomic scenarios that drive the quantitative component of expected credit losses due to changes in the length and severity of forecasted economic variables or events in the respective scenarios. To demonstrate this sensitivity, Citi applied 100% weight to the downside scenario as of September 30, 2023, to reflect the most severe economic deterioration forecast in the multiple macroeconomic scenarios. Citi’s downside scenario incorporates more adverse macroeconomic assumptions than the weighted scenario assumptions; therefore, applying a 100% downside scenario weight would result in a hypothetical increase in the ACL of approximately $4.8 billion related to lending exposures, except for loans individually evaluated for credit losses.
This analysis does not incorporate any impacts or changes to the qualitative component of the ACL. These factors could change the outcome of the sensitivity analysis based on historical experience and current conditions at the time of the assessment. Given the uncertainty reservesinherent in macroeconomic forecasting, Citi continues to believe that its ACL estimate based on a three probability-weighted macroeconomic scenario approach combined with the qualitative component remains appropriate as of September 30, 2023.
3Q23 Changes in the ACL
As further discussed below, Citi’s ending ACL balance for the third quarter of 2023 was $20.2 billion, compared to $20.1 billion as of June 30, 2023. The net build of $0.2 billion was primarily driven by growth in card balances in PBWM and reductionscorporate builds primarily related to specific risks and uncertainties impacting vulnerable industries and regions, partially offset by improvement in Russia exposures. Based on its latestkey macroeconomic forecast,variable forecasts. Citi believes its analysis of the ACL reflects the forward view of the economic environment as of September 30, 2022.2023. See Note 14 for additional information.
Consumer Allowance for Credit Losses on Loans
Citi’s consumer ACLL is largely driven by U.S. Cardscards (Branded cards and Retail services) in U.S. Personal Banking. As discussed above, Citi had aCiti’s total consumer ACLL build of $0.4was $0.1 billion in the ACLL for its consumer portfolios in the third quarter of 2022,2023, primarily driven by growth in U.S. Cards loan growth, which increased thecards balances, resulting in a September 30, 2023 ACLL balance to $13.4of $14.9 billion, or 3.74%3.95% of total funded consumer loans.
For U.S. Cards,cards, the level of reserves as a percentage of EOPrelative to total funded loans increaseddecreased to 7.53%7.81% at September 30, 2022,2023, due to macroeconomic improvement, compared to 7.48%7.86% at June 30, 2022.2023. For the remaining consumer exposures, the level of reserves relative to EOPtotal funded loans was 1.3%1.24% at September 30, 2022,2023, compared to 1.2%1.28% at June 30, 2022.2023.
Corporate Allowance for Credit Losses on Loans
Citi had a corporate ACLL build of $41 million$0.1 billion in the third quarter of 2022.2023. The build was primarily driven by a deterioration in macroeconomic forecasts,specific risks and uncertainties impacting vulnerable industries and regions, partially offset by the release of a COVID-19–related uncertainty reserve and reductions in Russia exposures. Including FX/Other, theimproved key macroeconomic variable forecasts. The ACLL reserve balance decreasedincreased by $21 million$0.1 billion to $2.9$2.7 billion, or 1.04%0.97% of total funded corporate funded loans.
ACLUC
Citi had an ACLUC release of $0.1 billion in the third quarter of 2022,2023, which reduced the ACLUC reserve balance, included in Other liabilities, to $2.1$1.8 billion. The release was primarily driven by reductionschanges in Russia exposures, partially offset by a build for a deterioration in macroeconomic forecasts primarily impacting the corporate portfolio.portfolio and improved key macroeconomic variable forecasts.
ACL on Other Financial Assets
Citi had anCiti’s ending ACL buildbalance on other financial assets carried at amortized cost of $0.1 billion infor the third quarter of 2022, which increased the ACL reserve balance included in Other assets2023 was $0.8 billion, compared to $0.3 billion.$0.8 billion as of June 30, 2023. The net build of $0.1 billion was primarily driven by a deterioration in certain macroeconomic variable forecasts, primarily impacting the corporate portfolio.other financial assets. See Note 14 for additional information.
ACLL and Non-accrual Ratios
At September 30, 2022, the ratio of the ACLL to total funded loans was 2.54% (3.74% for consumer loans and 1.04% for corporate loans), compared to 2.44% at June 30, 2022 (3.65% for consumer loans and 1.00% for corporateloans).
Citi’s total non-accrual loans were $2.9 billion at September 30, 2022, down $149 million from June 30, 2022. Consumer non-accrual loans of $1.4 billion at September 30, 2022 were unchanged from June 30, 2022. Corporate non-accrual loans decreased $170 million to $1.5 billion at September 30, 2022, compared to $1.7 billion at June 30, 2022. In addition, the ratio of non-accrual loans to total loans was 0.51% and 0.39% for corporate and consumer loans, respectively, at September 30, 2022.
Regulatory Capital Impact
Citi has elected to phase in the modified CECL impacttransition provision for regulatory capital purposes. After two years with no impact onpurposes provided by the U.S. banking agencies’ final rule. Accordingly, the Day One regulatory capital effects resulting from the adoption of CECL, adoption impact commenced phase in withas well as the ongoing adjustments for 25% of the impact (net of deferred taxes) recognizedchange in CECL-based allowances in each quarter between January 1, 2020 and December 31, 2021, started to be phased in on January 1, 2022 with an additional 25% toand will be recognized on the first dayfully reflected in Citi’s regulatory capital as of each subsequent year through January 1, 2025. In addition, 25% of the build (pretax) made in 2020 and 2021 was deferred and is being amortized over the same timeframe.
See Notes 1 and 14 for a further description of the ACL and related accounts.
Goodwill
Citi tests for goodwill for impairment annually as of October 1 (the annual test) and conducts interim assessments between the annual teststest if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. These events or circumstances include, among other things, a significant adverse change in the business climate, a decision to sell or dispose of all or a significant portion of a reporting unit or a sustained decrease in Citi’s stock price.
Citi had historically performed its annual goodwill impairment test as of July 1 each year. During the quarter ended September 30, 2022, the Company voluntarily changed its annual impairment assessment date from July 1 to October 1. Based on interim impairment tests performed within the period between the previous annual test on July 1, 2021 and the annual test to be performed onAt October 1, 2022, no more than 12 months will have elapsed between goodwill impairment teststhe fair value of any of Citi’s reporting units. The change in measurement date represents a change in method of applying an accounting principle. This change is preferable because it better aligns the Company’s goodwill impairment testing procedures with its annual planning process and with its fiscal year-end. Citi continues to monitor each reporting unit for triggering events for purposes of goodwill impairment testing. The change in accounting principle did not result in any, nor does Citi expect the change in accounting principle to result in any, delay, acceleration, or avoidance of an impairment charge.
During the first quarter of 2022, Citi performed an interim goodwill impairment test due to the previously disclosed changes in operating segments andtwo reporting units during the quarter.(Banking and Mexico Consumer/SBMM) ranged from 102% to 106% of their carrying values. The test resulted in an impairment of $535 million related to the Asia Consumer reporting unit within Legacy Franchises, due to the changes to Citi’s operating segments and reporting units during the quarter, as well as the timing of mutual execution of sale agreements for Asia consumer banking businesses.
During the second quarter of 2022, Citi’s Banking reporting unit within the ICG operating segment was negatively impacted by the industry-wide decline in investment banking activity and macroeconomic challenges and uncertainties. These conditions resulted in a corresponding decline in the operating resultscarrying values of the Banking and Mexico Consumer/SBMM reporting unit asunits included approximately $1.5 billion and $1 billion of June 30, 2022, and qualitatively indicated thatgoodwill, respectively. For each of the Bankingremaining reporting unit’sunits, fair value could be insufficient to support itsexceeded carrying value inclusive of goodwill.by at least 10%.
Accordingly, Citi performed an interim goodwill impairment test for the Banking reporting unit as of June 30,
2022. This included completing an independent valuation of the Banking reporting unit as of June 30, 2022, which concluded that the fair value of the Banking reporting unit exceeded its book value, inclusive of goodwill. The results of the impairment test showed that the fair value of the Banking reporting unit as a percentage of its carrying value was 102%, with the carrying value including approximately $1.5 billion of goodwill. Therefore, no impairment charge was recorded during the quarter. No other events or circumstances were identified to indicate that the fair values of Citi’s other reporting units were more-likely-than-not reduced below their respective carrying amounts.
During the third quarter of 2022, Citi’s Banking reporting unit within the ICG operating segment continued to be negatively impacted by the industry-wide decline in investment banking activity amid ongoing macroeconomic challenges and uncertainties as of September 30, 2022, qualitatively indicating that the Banking reporting unit’s fair value could be insufficient to support its carrying value, inclusive of goodwill.
Accordingly, Citi performed an interim goodwill impairment test for the Banking reporting unit as of September 30, 2022. This included completing an independent valuation of the Banking reporting unit as of September 30, 2022, which concluded that the fair value of the Banking reporting unit exceeded its book value, inclusive of goodwill. The results of the impairment test showed that the fair value of the Banking reporting unit as a percentage of its carrying value was 106%, with the carrying value including approximately $1.5 billion of goodwill. Therefore, no impairment charge was recorded during the quarter. No other events or circumstances were identified to indicate that the fair values of Citi’s other reporting units were more-likely-than-not reduced below their respective carrying amounts.
Also, during the third quarter of 2022, Citi performed an interim goodwill impairment test on the Mexico Consumer/SBMM reporting unit as of July 1, 2022 to satisfy the requirement that no more than 12 months elapse between the tests for all reporting units. Thetest resulted in no impairment as the fair value of the Mexico Consumer/SBMM reporting unit was greater than its carrying value.
Based on the interim impairment tests, the fair value of Citi’s reporting units as a percentage of their allocated carrying values ranged from approximately 106% to 267%, resulting in no further impairment recognized as of September 30, 2022.
While the inherent risk related to uncertainty is embedded in the key assumptions used in the valuations of the reporting units, the economic and business environments continue to evolve as Citi’s management implements its strategic refresh. If management’s future estimates of key economic and market assumptions were to differ from its current assumptions, Citi could potentially experience material goodwill impairment charges in the future. See Note 15 for a further discussion of goodwill, including key assumptions and related uncertainties that drive the fair value of the Banking reporting unit.goodwill.
Litigation Accruals
See the discussion in Note 2426 for information regarding Citi’s policies on establishing accruals for litigation and regulatory contingencies.
INCOME TAXES
Effective Tax Rate
| | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars, except effective tax rate | 2023 | 2022 | 2023 | 2022 |
| Income from continuing operations before income tax expense | $ | 4,788 | $ | 4,394 | $ | 15,013 | | $ | 15,631 | |
| Provision for income taxes | 1,203 | 879 | 3,824 | 3,002 |
| Effective tax rate | 25 | % | 20 | % | 25 | % | 19 | % |
Citi’s effective tax rate was 25% in the third quarter of 2023 versus 20% in the third quarter of 2022, both including the impact of divestitures, largely driven by the geographic mix of earnings. Citi recognized a third quarter of 2023 tax provision benefit of approximately $60 million related to tax law changes. For the nine months ended September 30, 2023, Citi’s effective tax rate increased to 25%, compared to 19% in the prior-year period, both including the impact of divestitures, largely driven by the geographic mix of earnings and lower discrete tax benefits.
Deferred Tax Assets
For additional information on Citi’s deferred tax assets (DTAs), see “Capital Resources,” “Risk Factors—Strategic Risks,” “Significant Accounting Policies and Significant Estimates—Income Taxes” and Notes 1 and 9 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
The table below summarizes Citi’s net DTAs balance:
| | Jurisdiction/Component | Jurisdiction/Component | DTAs balance | Jurisdiction/Component | DTAs balance |
| In billions of dollars | In billions of dollars | September 30,
2022 | | December 31, 2021 | In billions of dollars | September 30,
2023 | | December 31, 2022 |
| Total U.S. | Total U.S. | $ | 24.3 | | | $ | 22.1 | | Total U.S. | $ | 25.4 | | | $ | 24.8 | |
| Total foreign | Total foreign | 2.8 | | | 2.7 | | Total foreign | 2.9 | | | 2.9 | |
| Total | Total | $ | 27.1 | | | $ | 24.8 | | Total | $ | 28.3 | | | $ | 27.7 | |
At September 30, 2022,2023, Citigroup had recorded net DTAs of approximately $27.1$28.3 billion, an increasea decrease of $0.5$0.2 billion from June 30, 2022,2023 and an increase of $2.3$0.6 billion from December 31, 2021.2022. The increasedecrease for the third quarter was primarily from year-end 2021income in Other comprehensive income, and the year-to-date increase was primarily a result of losses in Other comprehensive income.
Citi’s geographic mix of earnings. Of Citi’s $27.1$28.3 billion of net DTAs, at September 30, 2022,$11.2 billion (compared to $11.7 billion of net DTAs arising from net operating loss, foreign tax creditat June 30, 2023) was deducted in calculating Citi’s regulatory capital, and general business credit tax carry-forwards, as well as $1.3the remaining $17.1 billion was appropriately risk weighted under the Basel III rules.
The $11.2 billion of DTAs deducted from regulatory capital was composed of $11.2 billion related to tax carry-forwards, with $1.8 billion of temporary differences that exceedin excess of the 10%/15% regulatory limitations, reduced by $1.8 billion of deferred tax liabilities, primarily associated with goodwill and certain other intangible assets that were excluded from Citi’s Common Equity Tier 1 Capital as of September 30, 2022. DTAs arising from net operating loss, foreign tax credit and general business credit tax carry-forwards are required to be entirelyseparately deducted from Common Equity Tier 1 Capital under the U.S. Basel III rules. DTAs arising from temporary differences are required to be deducted from capital only if these DTAs exceed 10%/15% limitations under the U.S. Basel III rules.capital.
DTA Realizability
Citi believes that realization of the net DTAs of $27.1$28.3 billion at September 30, 20222023 is more-likely-than-not, based on management’s expectations of future taxable income generation in the jurisdictions in which the DTAs arise, as well as consideration of available tax planning strategies (as defined in ASC Topic 740, Income Taxes).
Effective Tax Rate
Citi’s reported effective tax rate for the third quarter of 2022 was 20.0%, compared to the third quarter of 2021 effective tax rate of 20.4%.
Tax Legislation
The Inflation Reduction Act, signed into law on August 16, 2022, had no impact on Citi’s third quarter results. The Act includes a new corporate alternative minimum tax (AMT) and a 1% excise tax on stock buybacks, both effective January 1,
2023. The corporate AMT is a 15% minimum tax on financial statement income after adjusting for foreign taxes paid. Corporate AMT paid in one year is creditable against regular corporate tax liability in future years. Citi does not expect to pay material amounts of corporate AMT given its profitability and tax profile.
The 1% excise tax is a non-deductible tax on the fair market value of stock repurchased in the taxable year, reduced by the fair market value of any stock issued in the same year.
DISCLOSURE CONTROLS AND PROCEDURES
Citi’s disclosure controls and procedures are designed to ensure that information required to be disclosed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, including without limitation that information required to be disclosed by Citi in its SEC filings is accumulated and communicated to management, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO), as appropriate, to allow for timely decisions regarding required disclosure.
Citi’s Disclosure Committee assists the CEO and CFO in their responsibilities to design, establish, maintain and evaluate the effectiveness of Citi’s disclosure controls and procedures. The Disclosure Committee is responsible for, among other things, the oversight, maintenance and implementation of the disclosure controls and procedures, subject to the supervision and oversight of the CEO and CFO.
Citi’s management, with the participation of its CEO and CFO, has evaluated the effectiveness of Citigroup’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of September 30, 2022.2023. Based on that evaluation, the CEO and CFO have concluded that at that date Citigroup’s disclosure controls and procedures were effective.
DISCLOSURE PURSUANT TO SECTION 219 OF THE IRAN THREAT REDUCTION AND SYRIA HUMAN RIGHTS ACT
Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 (Section 219), which added Section 13(r) to the Securities Exchange Act of 1934, as amended, Citi is required to disclose in its annual or quarterly reports, as applicable, whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with certain individuals or entities that are the subject of sanctions under U.S. law. Disclosure is generally required even where the activities, transactions or dealings were conducted in compliance with applicable law. To the extent that transactions or dealings for its clients are permitted by U.S. law, Citi may continue to engage in such activities.
Citi, in its First Quarter of 20222023 Form 10-Q, identified and reported certain activities pursuant to Section 219 for the firstfourth quarter of 2022. Citi, did not identify any reportablein its Second Quarter of 2023 Form 10-Q, identified and reported certain activities pursuant to Section 219 for the second quarter of 2023. During the third quarter of 2023, Citigroup identified one transaction pursuant to Section 219.
On July 26, 2023, Citibank Europe plc, Czech Republic Branch, processed a payment to the Iranian Embassy in the Czech Republic for the payment of fees for a travel tourist visa. The total value of the payment was CZK 1,200.00 (approximately USD 51.80). Nominal fees were realized for the processing of this payment. This payment was permissible under the travel exemption of the Iranian Transactions and third quarters of 2022.
FORWARD-LOOKING STATEMENTS
Certain statements in this Form 10-Q, including but not limited to statements included within the Management’s Discussion and Analysis of Financial Condition and Results of Operations, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, Citigroup also may make forward-looking statements in its other documents filed or furnished with the SEC, and its management may make forward-looking statements orally to analysts, investors, representatives of the media and others.
Generally, forward-looking statements are not based on historical facts but instead represent Citigroup’s and its management’s beliefs regarding future events. Such statements may be identified by words such as believe, expect, anticipate, intend, estimate, may increase, may fluctuate, target and illustrative, and similar expressions or future or conditional verbs such as will, should, would and could.
Such statements are based on management’s current expectations and are subject to risks, uncertainties and changes in circumstances. Actual results of operations and financial conditions, including capital and liquidity, may differ materially from those included in these statements due to a variety of factors, including without limitation (i) the precautionary statements included within the “Executive Summary” and each individual business’s discussion and analysis of its results of operations above, in Citi’s FirstSecond Quarter of 20222023 Form 10-Q, in Citi’s SecondFirst Quarter of 20222023 Form 10-Q, in Citi’s 20212022 Form 10-K and in Citi’s other SEC filings; (ii) the factors listed and described under “Risk Factors” in Citi’s 20212022 Form 10-K; and (iii) the risks and uncertainties summarized below:
•the potential impact to Citi from continued macroeconomic, geopolitical and other challenges, uncertainties and volatilities,volatility, including, among others, a continued elevated level of inflation and related financial impacts on consumers and clients and their sentiments; governmental fiscal and monetary actions or expected actions, including further increases incontinued elevated interest rates, reductions in central bank balance sheets, or other changes inrestrictive interest rate or other monetary policies; the increasing potential of recession or significantly lower economic growthrecessions in Europe, the U.S., Europe and other regions and countries; a potential U.S. federal government shutdown and the resulting impacts; sustained elevated levels of inflation and their impacts; economic and geopolitical challenges inrelated to China, including a slowing of the Chinese economyweak economic growth, driven in part by challenges in its real estate sector, and related impactstensions or any policy actions, and rising tensionsconflicts between China and Taiwan; significant disruptionsTaiwan and/or involving China and volatilitythe U.S.; other geopolitical challenges, tensions and conflicts, including those related to Russia’s war in financial markets, including continued volatilityUkraine and potential escalation of the conflict in U.K. financial markets and adverse impacts to market liquidity and investor demand for certain assets;the Middle East; foreign currency volatility and devaluations and continued strength in the U.S. dollar;devaluations; distress and volatility in emerging markets, including sovereign debt pricing; geopolitical tensions and conflicts, including the Russia–Ukraine war; protracted or widespread trade tensions; financial market, other economic and political disruption driven by populist movements and governments; natural disasters; additional pandemics; and election outcomes, including the U.S. midterm elections and effects of a potentially divided
government, such as with respect to raising the federal debt limit;
•impacts related to or resulting from the war in Ukraine, including further escalation of tensions between Russia and the U.S. and its allies; the potential adverse effects on Citi’s ability to wind down its activities in Russia, whether due to governmental or regulatory approvals, requirements or other actions, or otherwise; potential negative impacts on Citi’s businesses and customers in and related to Russia and Ukraine, including credit costs or other losses, charges or other negative financial or strategic impacts, including from any expropriation or other deconsolidation event; impacts from existing and future financial and economic sanctions and export controls against Russian organizations and/or individuals imposed by the U.S., the EU, the U.K. and other jurisdictions; rising food and energy insecurity, particularly in emerging markets; commodity and energy market disruptions; inflationary impacts; additional supply chain disruptions; the impact of cyber incidents; and the resulting negative impacts and uncertainties on regional and global financial markets and economic conditions;
•challenges and uncertainties related to any potential resurgence of the COVID-19 pandemic in the U.S. and globally, including any variants becoming more prevalent and impactful, and the impact on global financial markets and economic conditions, Citi’s consumer and corporate borrowers, and Citi’s businesses and overall results of operations and financial condition;outcomes;
•the potential impact on Citi’s ability to return capital to common shareholders consistent with its capital planning efforts and targets, due to, among other things: changes in regulatory capital rules, requirements or interpretations,
such as revisions to the U.S. Basel III rules, including the recently issued notice of proposed rulemaking, known as the Basel III Endgame, related to regulatory capital requirements; annual recalibration of the Stress Capital Buffer (most recently in June 2022), which is based upon the results(increased effective as of the CCAR process as well as supervisory stress tests;October 1, 2023); recalibration of the GSIB surcharge; Citi’s results of operations and financial condition;condition, including the capital impact related to Citi’s remaining consumer banking divestitures, which involve significant execution complexity, including the timing of transaction signings and closings, as well as achievement of the expected resultsbenefits from the divestitures; Citi’s DTA utilization; forecasts of macroeconomic conditions; Citi’s implementation and maintenance of an effective capital planning framework, and effectiveness in planning, managing and calculating its level of risk-weighted assets under both the Advanced Approaches and the Standardized Approach and Supplementary Leverage ratio; elevated levelsratio and GSIB surcharge; Citi’s implementation and maintenance of liquidity in the financial system related to the pandemic; the reductionan effective capital planning framework; forecasts of central bank balance sheetsmacroeconomic conditions; and the impact on liquidity in the financial system; changes in regulatory capital rules, requirements or interpretations, including adoption of the U.S. SA-CCR rule for purposes of future supervisory stress testing or otherwise; and changes to the U.S. regulatory capital framework, including among other things, revisions to the U.S. Basel III rules;Citi’s DTA utilization;
•the ongoing regulatory and legislative uncertainties and changes faced by financial institutions, including Citi, in the U.S. and globally, such as potential fiscal, monetary,
regulatory, tax, sanctions and other changes due to the differing priorities of the current U.S. presidential administration, changes in regulatory leadership or focus and actions of Congress including as a result of the U.S. midterm elections; potential changes to various aspects of the regulatory capital framework;framework and requirements applicable to Citi; potential fiscal, monetary, regulatory, tax, sanctions and other changes, including potential increased regulatory requirements and costs, such as the imposition of additional or special assessments by the FDIC, including the recently issued notice of proposed rulemaking to recover the losses from recent bank failures; potential changes in regulatory requirements relating to interest rate risk management; future legislative and regulatory requirements in the U.S. and globally relating to sustainability and climate change, including any new disclosure requirements, such as those proposed and/or adopted by the SEC, the EU and thosethe State of California; increased legislative activity by U.S. states that restricts the EU;flow of capital and investment by financial institutions to state governmental entities, including anti-ESG initiatives that are designed to push back against corporate ESG policies; and the potential impact these uncertainties and changes could have on Citi’s businesses, results of operations, financial condition, business planning and compliance risks and costs;
•the additional disclosure and other requirements proposed by the SEC regarding special purpose acquisition companies (SPACs) that more closely align SPAC transaction requirements with those for an initial public offering with the objective of enhancing investor protection and expanding the responsibilities of underwriters; and the potential impact of these final requirementsto credit card fee revenues in Branded cards and Retail services in PBWM from the Consumer Financial Protection Bureau’s proposed cap on the results of operations of ICG’s Banking reporting unit;credit card late fees;
•Citi’s ability to improve its risk and controls environment, modernize its data and technology infrastructure and further enhance safety and soundness, meet regulatory expectations, be sufficiently competitive, serve clients effectively, avoid operational errors and realize productivity improvements, as part of its transformation initiatives and strategic refresh, to achieve its projected or expected results from its continued investments and other initiatives, including to improve its data and technology infrastructure, risk management and controls and further strengthen safety and soundness, deepen client relationships and enhance client offerings and capabilities in order to simplify Citi and streamline its allocation of resources,priorities, including as a result of factors that Citi cannot control, such as macroeconomic uncertainties and challenges, a continued elevated level of inflation and the highly competitive environment for talent, which could make the initiatives more costly and more challenging to implement, and limit their effectiveness;
•Citi’s ability to achieve its objectives from its strategic refresh, including, among others,and other initiatives, such as those related to its Global Wealth businessinvestment and simplification priorities, including, among others, achieving productivity improvements and expense
savings, minimizing disruptions to its exitsbusinesses and managing the execution uncertainty and complexity associated with Citi’s exit of remaining consumer banking businesses in Asia and EMEA and consumer, small business and middle-market banking operations in Mexico and Citi’s wind-down of its activities in Russia,Consumer/SBMM, which involve significant execution complexity, may not be as productive, effective or timely as Citi expects, may impact the local businesses during the exit process, and could result in additional foreign currency translation adjustment (CTA) orCTA and other losses, charges or other negative financial or strategic impacts, which could be material;
•the potential impact to Citi from climate change and the transition to a low-carbon economy, including both physical risks, such as increased frequency and/or severity of adverse weather events as consequences of chronic climate changes, and transition risks, such as those arising from changes in regulations or market preferences toward a low-carbon economy; higher regulatory, compliance, credit, reputational and other risks and costs and data-related challenges, including as a result of any new disclosure requirements; and an increased focus by banking regulators and others on the issue of climate change at financial institutions directly and with respect to their clients;
•Citi’s ability to utilize its DTAs (including the foreign tax credit component of its DTAs) and thus reduce the negative impact of the DTAs on Citi’s regulatory capital, including as a result of its ability to generate U.S. taxable income;income in the relevant tax carry-forward periods;
•the potential impact to Citi if its interpretation or application of the complex incomeincome-based and non-income based (such as withholding, stamp, service and other non-income taxes) tax laws to which it is subject such asin the Tax CutsU.S. and Jobs Act (Tax Reform), the Foreign Tax Credit guidelines that became effective in March 2022, and withholding, stamp, service and other non-income taxes,non-U.S. jurisdictions differs from
those of the relevant governmental taxing authorities, including as a result of litigation or examinations regarding non-income basednon-income-based tax matters, and the resulting payment of additional taxes, penalties or interest;
•the potential impact from a deterioration in or failure to maintain Citi’s co-branding or private label credit card relationships, due to, among other things, the general economic environment; changes in consumer sentiment, spending patterns and credit card usage behaviors; a decline in sales and revenues, partner store closures government-imposed restrictions, reduced air and business travel or other operational difficulties of the retailer or merchant; early termination of a particular relationship; or other factors, such asincluding bankruptcies, liquidations, restructurings, consolidations or other similar events, whether due to the impact of the pandemica challenging economic environment or otherwise;
•Citi’s ability in its resolution plan submissions to address any shortcomings or deficiencies identified or guidance provided by the Federal Reserve Board or FDIC;FDIC on its resolution and recovery plan submissions;
•the potential impact on Citi’s performance and the performance of its individual businesses, including its competitive position and ability to effectively manage its businesses, and continueits ability to effectively execute its strategies,transformation and strategic and other initiatives, if Citi is unable to attract, retain and motivate highly qualified employees, particularly given the highly competitive environment for talent;talent and other factors, such as potential attrition driven by Citi’s simplification initiatives, low unemployment, changes in workers’ expectations and
regulation of employee compensation in the banking industry;
•Citi’s ability to compete effectively compete in the U.S. and globally with both financial and non-financial services firms, including as a result of certain competitors being subject to less stringent legal and regulatory requirements; the introduction of new or emerging technologies;technologies and mobile platforms; possible disruptions from artificial intelligence-driven solutions; growth in digital asset markets; changes in the payments space; growth of digital assets;reliance on third parties for certain product and service offerings and impact if any third party is unable to provide adequate support for such product and service offerings; and the increased operational, compliance and other risks resulting from the need to develop new or change or adapt existing products and services to attract and retain customers or clients or to compete more effectively with competitors;
•the potential impact to Citi from a prior or future failure or disruption of its operational processes or systems, including as a result of, among other things, human error, such as manual transaction processing errors (e.g., aerroneous payments to lenders or manual errorerrors by any Citi tradertraders that causescause system orand market disruptions orand losses for Citi or its clients), which can be exacerbated by staffing challenges and processing backlogs; fraud theft or malice;malice on the part of employees or third parties; operational or execution failures or deficiencies by third parties; insufficient (or limited) straight-through processing between legacy systems and any failure to design and effectively operate controls that mitigate operational risks associated with those legacy systems, leading to potential risk of errors and operating losses; accidental system or technological failure; electrical or telecommunication outages; failure of or cyber incidents involving computer servers or infrastructure; or other similar losses or damage to Citi’s property or assets; failures by third parties,parties; potential disruptions and/or malfunctions within Citi’s businesses, as well as disruptions in the operations of Citi’s businesses, clients, customers or other third parties; and the increased financial, reputational, legal and compliance risks resulting from any such failure or disruption of its operational processprocesses or systems, including fines or legal orand regulatory actions or proceedings;proceedings, fines and other costs;
•the increasing risk ofto Citi’s and third parties’ computer systems and networks from continually evolving, sophisticated cybersecurity activities faced by financial institutions and others, including Citi and third parties with which it does business,incidents that could result in, among other things, theft,
loss, misuse or disclosure of confidential Citi, client or customer information or assets and a disruption of computer, software or network systems; and the potential impact from such risks, including reputational damage, regulatory penalties, loss of revenues, additional costs (including repair, remediation and other costs), exposure to litigation and other financial losses;
•the potential impact of changes to,or errors in accounting assumptions, judgments or estimates, or the application of incorrect, assumptions, judgments or estimates incertain accounting principles, related to the preparation of Citi’s financial statements, including the assessment of goodwill or other assets for impairment; estimatesestimate of Citi’s ACL, which depends on its CECL models and
assumptions, and forecasted macroeconomic conditions and qualitative management adjustment component;characteristics of Citi’s loan portfolios and other applicable financial assets; reserves related to litigation, regulatory and tax matters exposures; valuation of DTAs; andthe fair valuevalues of certain assets and liabilities; and the assessment of goodwill and other assets for impairment;
•the financial impact from reclassification of any CTA component of AOCI, including related hedges and taxes, into Citi’s earnings, due to thea sale, IPO, substantial liquidation or any other deconsolidation event of any foreign entity,operations or equity investments, such as those related to any of Citi’s Legacy Franchises segmentremaining consumer banking divestitures or exitother legacy businesses, whether due to Citi’s strategic refresh or otherwise;
•the potential impact of settlement charges under any of Citi’s pension plans, whether due to plan settlements (including lump sum payments) for a year exceeding the service plus interest costs or due to more than 10% of the plan’s projected benefit obligation being settled;
•the impact of changes to financial accounting and reporting standards or interpretations onof how Citi records and reports its financial condition and results of operations;
•the potential impact to Citi’s results of operations and/or regulatory capital and capital ratios if Citi’s risk management and mitigation processes, strategies or models, including those related to its comprehensive stress testing initiatives or ability to manage, assess and aggregate data, are deficient or ineffective, or Citi’s Basel III regulatory capital models require refinement, modification or enhancement, or any related action is taken by Citi’s U.S. banking regulators;
•the potential impact of credit risk and concentrations of risk on Citi’s results of operations, whether due to a default of or deterioration involving consumer, corporate or public sector borrowers or other counterparties in the U.S. or in various countries and jurisdictions globally, including from indemnification obligations in connection with various transactions, such as hedging or reinsurance arrangements related to those obligations, or Citi being unableCiti’s inability to liquidate or realize the fair value of its collateral, which risks can be heightened for vulnerable industries or sectors impacted by the continued macroeconomic, geopolitical, market and other challenges and uncertainties and volatilities;
•the potential impact on Citi’s liquidity and/or costs of funding as a result ofif it does not effectively manage its liquidity or due to various other factors, including, among others, general disruptions in the financial markets,markets; deposit outflows or unfavorable changes in deposit mix, whether driven by migration to higher-yielding products, competition or otherwise, which could be exacerbated by the rapid spread of information via social or mainstream media; governmental fiscal and monetary policies,policies; regulatory changes orchanges; negative investor perceptions of Citi’s creditworthiness,creditworthiness; competition for funding, including a decrease in demand for corporate debt, unexpected increases in cash or
collateral requirements, and the consequent inability to monetize available liquidity resources, the competitive environment for deposits,resources; changes in Citi’s credit spreads,spreads; higher interest ratesrates; and changes in currency exchange rates;
•the impact of a credit ratings downgrade of Citi or one or morecertain of its more significant subsidiaries or issuing entities on Citi’s funding and liquidity as well as on the operations of certain of its businesses;
•the potential impact to Citi of ongoing interpretation and implementation of regulatory and legislative requirements and changes in the U.S. and globally, as well as heightened regulatory scrutiny and expectations for large financial institutions and their employees and agents, with respect to governance, infrastructure, data, climate and risk management practices and controls, customer and client protection, market practices, anti-money laundering and increasingly complex sanctions and disclosure regimes, including the impact on Citi’s compliance, regulatory and other risks and costs, such as increased regulatory oversight and restrictions, enforcement proceedings, penalties and fines;
•the potential outcomes of the extensive legal and regulatory proceedings, examinations, investigations, consent orders and related compliance efforts and other inquiries to which Citi is or may be subject at any given time, such as the previously disclosed October 2020 FRB and OCC consent orders, particularly given the increased focus by regulators on risksrisk and controls, such as enterprise-wide risk management, compliance, data quality management and governance and internal controls, and policies and procedures; Citi’s ability to remediate deficienciesimplement targeted actions plans and submit quarterly progress reports detailing the results and status of improvements to comply with the consent orders on a timely and sufficient basis, including the resultingwhich will continue to require significant investments required for such remediation efforts;to meet regulatory expectations; and the heightened scrutiny and expectations generally from regulators, and the severity of the remedies that may be sought by regulators, such as significant monetary penalties, supervisory or enforcement orders, business restrictions, limitations on dividends, and changes to directors and/or officers and collateral consequences to Citi arising from such outcomes; and
•the various risks faced by Citi as a result of its presence in the emerging markets, including, among others, limitations cost or unavailability of hedges on foreign investments; foreign currency volatility and devaluations; sustained elevated interest rates and other restrictive monetary policies; elevated inflation and hyperinflation; sovereign debt volatility; election outcomes; regulatory changes and political events; foreign exchange controls, including the inability to access indirect foreign exchange mechanisms; macroeconomic volatility and disruptions,geopolitical challenges and uncertainties and volatility, including with respect to commodity prices as well as repricing of assets and resulting impacts; the impacts of inflation and food and energy insecurity; limitations on foreign investment; sociopolitical instability (including from hyperinflation);instability; civil unrest; crime, corruption and fraud; cyberattacks; nationalization or loss of licenses; business restrictions; sanctions or asset freezes; potential criminal charges; closure of branches or subsidiaries; confiscation of assets, whether related to geopolitical conflicts or otherwise; the need to record additional reserves based on the transfer risk associated with exposures outside the U.S. regulators ordriven by safety and soundness considerations under U.S. banking law; risks related to the ICERC imposing mandatory loan loss or other reserve requirements on Citi;ongoing wind-down of Citi’s operations in Russia; and increased compliance and regulatory risks and costs;costs.
•the potential impact to Citi from climate change and the transition to a low-carbon economy, including both physical risks, such as increased frequency and/or severity of adverse weather events as consequences of chronic climate changes, and transition risks, such as those arising from changes in regulations or market preferences toward a low-carbon economy, as well as higher regulatory, compliance and reputational risks and costs and data-related challenges, including as a result of any new SEC rules related to climate change disclosures, such as those proposed by the SEC, and an increased focus by banking regulators and others on the issue of climate change at financial institutions directly and with respect to their clients; and
•the transition away from and discontinuance of LIBOR and any other interest rate benchmark and the adverse consequences it could have for market participants, including Citi.
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 that the forward-looking statements were made.
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FINANCIAL STATEMENTS AND NOTES TABLE OF CONTENTS
| | | | | |
| CONSOLIDATED FINANCIAL STATEMENTS | |
Consolidated Statement of Income (Unaudited)—
For the Three and Nine Months Ended September 30, 20222023 and 20212022 | |
Consolidated Statement of Comprehensive Income (Unaudited)—For the Three and Nine Months Ended September 30, 20222023 and 20212022 | |
Consolidated Balance Sheet—September 30, 20222023 (Unaudited) and December 31, 20212022 | |
Consolidated Statement of Changes in Stockholders’ Equity (Unaudited)—For the Three and Nine Months Ended September 30, 20222023 and 20212022 | |
Consolidated Statement of Cash Flows (Unaudited)—
For the Nine Months Ended September 30, 20222023 and 20212022 | |
| | | | | |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
Note 1—Basis of Presentation, Updated Accounting Policies
and Accounting Changes | |
Note 2—Discontinued Operations, Significant Disposals
and Other Business Exits | |
| Note 3—Operating Segments | |
| Note 4—Interest Revenue and Expense | |
Note 5—Commissions and Fees; Administration and Other
Fiduciary Fees | |
| Note 6—Principal Transactions | |
| Note 7—Incentive Plans | |
| Note 8—Retirement Benefits | |
| Note 9—Earnings per Share | |
Note 10—Securities Borrowed, Loaned and
Repurchase Agreements | |
| Note 11—Brokerage Receivables and Brokerage Payables | |
| Note 12—Investments | |
| Note 13—Loans | |
| | | | | |
| |
Note 13—Loans | |
| Note 14—Allowance for Credit Losses | |
| Note 15—Goodwill and Intangible Assets | |
Note 16—DebtDeposits | |
| Note 17—Debt | |
Note 18—Changes in Accumulated Other Comprehensive
Income (Loss) (AOCI) | |
| Note 19—Preferred Stock | |
Note 18—20—Securitizations and Variable Interest Entities | |
Note 19—21—Derivatives | |
Note 20—22—Fair Value Measurement | |
Note 21—23—Fair Value Elections | |
| Note 24—Guarantees and Commitments | |
Note 22—Guarantees and Commitments25—Leases | |
Note 23—Leases26—Contingencies | |
Note 24—Contingencies27—Subsidiary Guarantees | |
Note 25—Condensed Consolidating Financial Statements | |
CONSOLIDATED FINANCIAL STATEMENTS
| | | | | | | | |
| CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) | | Citigroup Inc. and Subsidiaries |
| | | | Three Months Ended September 30, | Nine Months Ended September 30, | | Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars, except per share amounts | In millions of dollars, except per share amounts | 2022 | 2021 | 2022 | 2021 | In millions of dollars, except per share amounts | 2023 | 2022 | 2023 | 2022 |
| Revenues | Revenues | | | | Revenues | | | |
| Interest revenue | Interest revenue | $ | 19,919 | | $ | 12,650 | | $ | 48,700 | | $ | 37,647 | | Interest revenue | $ | 34,837 | | $ | 19,919 | | $ | 96,879 | | $ | 48,700 | |
| Interest expense | Interest expense | 7,356 | | 1,959 | | 13,302 | | 5,972 | | Interest expense | 21,009 | | 7,356 | | 55,803 | | 13,302 | |
| Net interest income | Net interest income | $ | 12,563 | | $ | 10,691 | | $ | 35,398 | | $ | 31,675 | | Net interest income | $ | 13,828 | | $ | 12,563 | | $ | 41,076 | | $ | 35,398 | |
| Commissions and fees | Commissions and fees | $ | 2,139 | | $ | 3,399 | | $ | 7,159 | | $ | 10,443 | | Commissions and fees | $ | 2,195 | | $ | 2,139 | | $ | 6,693 | | $ | 7,159 | |
| Principal transactions | Principal transactions | 2,625 | | 2,233 | | 11,740 | | 8,450 | | Principal transactions | 3,008 | | 2,625 | | 9,475 | | 11,740 | |
| Administration and other fiduciary fees | Administration and other fiduciary fees | 915 | | 1,007 | | 2,904 | | 2,990 | | Administration and other fiduciary fees | 971 | | 915 | | 2,856 | | 2,904 | |
| Realized gains (losses) on sales of investments, net | 52 | | 117 | | 74 | | 655 | | |
| Realized gains on sales of investments, net | | Realized gains on sales of investments, net | 30 | | 52 | | 151 | | 74 | |
| Impairment losses on investments: | Impairment losses on investments: | | | | Impairment losses on investments: | | | |
| Impairment losses on investments and other assets | Impairment losses on investments and other assets | (91) | | (30) | | (277) | | (112) | | Impairment losses on investments and other assets | (70) | | (91) | | (227) | | (277) | |
Provision for credit losses on AFS debt securities(1) | 5 | | (1) | | 7 | | (1) | | |
(Provision) releases for credit losses on AFS debt securities(1) | | (Provision) releases for credit losses on AFS debt securities(1) | (1) | | 5 | | (1) | | 7 | |
| | Net impairment losses recognized in earnings | Net impairment losses recognized in earnings | (86) | | (31) | | (270) | | (113) | | Net impairment losses recognized in earnings | $ | (71) | | $ | (86) | | $ | (228) | | $ | (270) | |
| Other revenue | Other revenue | $ | 300 | | $ | 31 | | $ | 327 | | $ | 767 | | Other revenue | $ | 178 | | $ | 300 | | $ | 999 | | $ | 327 | |
| Total non-interest revenues | Total non-interest revenues | $ | 5,945 | | $ | 6,756 | | $ | 21,934 | | $ | 23,192 | | Total non-interest revenues | $ | 6,311 | | $ | 5,945 | | $ | 19,946 | | $ | 21,934 | |
| Total revenues, net of interest expense | Total revenues, net of interest expense | $ | 18,508 | | $ | 17,447 | | $ | 57,332 | | $ | 54,867 | | Total revenues, net of interest expense | $ | 20,139 | | $ | 18,508 | | $ | 61,022 | | $ | 57,332 | |
| Provisions for credit losses and for benefits and claims | Provisions for credit losses and for benefits and claims | | | | Provisions for credit losses and for benefits and claims | | | | |
| Provision for credit losses on loans | Provision for credit losses on loans | $ | 1,328 | | $ | (188) | | $ | 2,972 | | $ | (2,793) | | Provision for credit losses on loans | $ | 1,816 | | $ | 1,328 | | $ | 5,314 | | $ | 2,972 | |
| Provision for credit losses on held-to-maturity (HTM) debt securities | 10 | | (10) | | 28 | | (17) | | |
| Provision (release) for credit losses on HTM debt securities | | Provision (release) for credit losses on HTM debt securities | (3) | | 10 | | (24) | | 28 | |
| Provision for credit losses on other assets | Provision for credit losses on other assets | 73 | | (3) | | 76 | | 3 | | Provision for credit losses on other assets | 56 | | 73 | | 630 | | 76 | |
| Policyholder benefits and claims | Policyholder benefits and claims | 25 | | 22 | | 74 | | 89 | | Policyholder benefits and claims | 25 | | 25 | | 63 | | 74 | |
| Provision for credit losses on unfunded lending commitments | (71) | | (13) | | 244 | | (595) | | |
| Provision (release) for credit losses on unfunded lending commitments | | Provision (release) for credit losses on unfunded lending commitments | (54) | | (71) | | (344) | | 244 | |
Total provisions for credit losses and for benefits and claims(2) | Total provisions for credit losses and for benefits and claims(2) | $ | 1,365 | | $ | (192) | | $ | 3,394 | | $ | (3,313) | | Total provisions for credit losses and for benefits and claims(2) | $ | 1,840 | | $ | 1,365 | | $ | 5,639 | | $ | 3,394 | |
| Operating expenses | Operating expenses | | | | Operating expenses | | | |
| Compensation and benefits | Compensation and benefits | $ | 6,745 | | $ | 6,058 | | $ | 20,037 | | $ | 18,041 | | Compensation and benefits | $ | 7,424 | | $ | 6,745 | | $ | 22,350 | | $ | 20,037 | |
| Premises and equipment | Premises and equipment | 557 | | 560 | | 1,719 | | 1,694 | | Premises and equipment | 620 | | 557 | | 1,813 | | 1,719 | |
| Technology/communication | Technology/communication | 2,145 | | 1,997 | | 6,229 | | 5,744 | | Technology/communication | 2,256 | | 2,145 | | 6,692 | | 6,229 | |
| Advertising and marketing | Advertising and marketing | 407 | | 402 | | 1,132 | | 1,012 | | Advertising and marketing | 324 | | 407 | | 1,016 | | 1,132 | |
| Other operating | Other operating | 2,895 | | 2,760 | | 9,190 | | 8,170 | | Other operating | 2,887 | | 2,895 | | 8,499 | | 9,190 | |
| Total operating expenses | Total operating expenses | $ | 12,749 | | $ | 11,777 | | $ | 38,307 | | $ | 34,661 | | Total operating expenses | $ | 13,511 | | $ | 12,749 | | $ | 40,370 | | $ | 38,307 | |
| Income from continuing operations before income taxes | Income from continuing operations before income taxes | $ | 4,394 | | $ | 5,862 | | $ | 15,631 | | $ | 23,519 | | Income from continuing operations before income taxes | $ | 4,788 | | $ | 4,394 | | $ | 15,013 | | $ | 15,631 | |
| Provision for income taxes | Provision for income taxes | 879 | | 1,193 | | 3,002 | | 4,680 | | Provision for income taxes | 1,203 | | 879 | | 3,824 | | 3,002 | |
| Income from continuing operations | Income from continuing operations | $ | 3,515 | | $ | 4,669 | | $ | 12,629 | | $ | 18,839 | | Income from continuing operations | $ | 3,585 | | $ | 3,515 | | $ | 11,189 | | $ | 12,629 | |
| Discontinued operations | Discontinued operations | | | | Discontinued operations | | | |
| Income (loss) from discontinued operations | Income (loss) from discontinued operations | $ | (6) | | $ | (1) | | $ | (270) | | $ | 7 | | Income (loss) from discontinued operations | $ | 2 | | $ | (6) | | $ | — | | $ | (270) | |
| | Benefit for income taxes | Benefit for income taxes | — | | — | | (41) | | — | | Benefit for income taxes | — | | — | | — | | (41) | |
| Income (loss) from discontinued operations, net of taxes | Income (loss) from discontinued operations, net of taxes | $ | (6) | | $ | (1) | | $ | (229) | | $ | 7 | | Income (loss) from discontinued operations, net of taxes | $ | 2 | | $ | (6) | | $ | — | | $ | (229) | |
| Net income before attribution to noncontrolling interests | Net income before attribution to noncontrolling interests | $ | 3,509 | | $ | 4,668 | | $ | 12,400 | | $ | 18,846 | | Net income before attribution to noncontrolling interests | $ | 3,587 | | $ | 3,509 | | $ | 11,189 | | $ | 12,400 | |
| Noncontrolling interests | Noncontrolling interests | 30 | | 24 | | 68 | | 67 | | Noncontrolling interests | 41 | | 30 | | 122 | | 68 | |
| Citigroup’s net income | Citigroup’s net income | $ | 3,479 | | $ | 4,644 | | $ | 12,332 | | $ | 18,779 | | Citigroup’s net income | $ | 3,546 | | $ | 3,479 | | $ | 11,067 | | $ | 12,332 | |
Basic earnings per share(3) | Basic earnings per share(3) | | | | Basic earnings per share(3) | | | |
| Income from continuing operations | Income from continuing operations | $ | 1.64 | | $ | 2.17 | | $ | 5.99 | | $ | 8.70 | | Income from continuing operations | $ | 1.64 | | $ | 1.64 | | $ | 5.19 | | $ | 5.99 | |
| Income from discontinued operations, net of taxes | Income from discontinued operations, net of taxes | — | | — | | (0.12) | | — | | Income from discontinued operations, net of taxes | — | | — | | — | | (0.12) | |
| Net income | Net income | $ | 1.64 | | $ | 2.17 | | $ | 5.87 | | $ | 8.70 | | Net income | $ | 1.64 | | $ | 1.64 | | $ | 5.19 | | $ | 5.87 | |
Weighted average common shares outstanding (in millions) | Weighted average common shares outstanding (in millions) | 1,936.8 | | 2,009.3 | | 1,950.0 | | 2,049.3 | | Weighted average common shares outstanding (in millions) | 1,924.4 | | 1,936.8 | | 1,936.9 | | 1,950.0 | |
Diluted earnings per share(3) | Diluted earnings per share(3) | | | | Diluted earnings per share(3) | | | |
| Income from continuing operations | Income from continuing operations | $ | 1.63 | | $ | 2.15 | | $ | 5.95 | | $ | 8.64 | | Income from continuing operations | $ | 1.63 | | $ | 1.63 | | $ | 5.14 | | $ | 5.95 | |
| Income (loss) from discontinued operations, net of taxes | Income (loss) from discontinued operations, net of taxes | — | | — | | (0.12) | | — | | Income (loss) from discontinued operations, net of taxes | — | | — | | — | | (0.12) | |
| Net income | Net income | $ | 1.63 | | $ | 2.15 | | $ | 5.84 | | $ | 8.65 | | Net income | $ | 1.63 | | $ | 1.63 | | $ | 5.14 | | $ | 5.84 | |
Adjusted weighted average diluted common shares outstanding (in millions) | Adjusted weighted average diluted common shares outstanding (in millions) | 1,955.1 | | 2,026.2 | | 1,967.1 | | 2,065.3 | | Adjusted weighted average diluted common shares outstanding (in millions) | 1,951.7 | | 1,955.1 | | 1,961.5 | | 1,967.1 | |
(1) In accordance with ASC 326, which requires the provision for credit losses on AFS securities to be included in revenue.
(2) This total excludes the provision for credit losses on AFS securities, which is disclosed separately above.
(3) Due to rounding, earnings per share on continuing operations and discontinued operations may not sum to earnings per share on net income.
The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
| | | | | | | | |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | | Citigroup Inc. and Subsidiaries |
| (UNAUDITED) | | |
| | | | Three Months Ended September 30, | Nine Months Ended September 30, | | Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | In millions of dollars | 2022 | 2021 | 2022 | 2021 | In millions of dollars | 2023 | 2022 | 2023 | 2022 |
| Citigroup’s net income | Citigroup’s net income | $ | 3,479 | | $ | 4,644 | | $ | 12,332 | | $ | 18,779 | | Citigroup’s net income | $ | 3,546 | | $ | 3,479 | | $ | 11,067 | | $ | 12,332 | |
Add: Citigroup’s other comprehensive income(1) | | | | |
Net change in unrealized gains and losses on debt securities, net of taxes(1) | $ | (580) | | $ | (279) | | $ | (6,358) | | $ | (2,538) | | |
Net change in debt valuation adjustment (DVA), net of taxes(2) | 872 | | (82) | | 3,632 | | (186) | | |
| Net change in cash flow hedges, net of taxes | (763) | | (201) | | (2,970) | | (930) | | |
| Benefit plans liability adjustment, net of taxes | 37 | | 135 | | 119 | | 936 | | |
| Net change in foreign currency translation adjustment, net of taxes and hedges | (2,399) | | (1,312) | | (4,043) | | (2,063) | | |
| Net change in excluded component of fair value hedges, net of taxes | 30 | | 8 | | 87 | | (12) | | |
Add: Citigroup’s other comprehensive income, net change, net of taxes(1) | | Add: Citigroup’s other comprehensive income, net change, net of taxes(1) | | | |
Unrealized gains and losses on debt securities(2) | | Unrealized gains and losses on debt securities(2) | $ | (169) | | $ | (580) | | $ | 793 | | $ | (6,358) | |
Debt valuation adjustment (DVA)(3) | | Debt valuation adjustment (DVA)(3) | 299 | | 872 | | (645) | | 3,632 | |
| Cash flow hedges | | Cash flow hedges | 731 | | (763) | | 1,263 | | (2,970) | |
Benefit plans liability adjustment(4) | | Benefit plans liability adjustment(4) | 312 | | 37 | | 72 | | 119 | |
| CTA, net of hedges | | CTA, net of hedges | (1,496) | | (2,399) | | (632) | | (4,043) | |
| Excluded component of fair value hedges | | Excluded component of fair value hedges | (12) | | 30 | | (15) | | 87 | |
| Long-duration insurance contracts | | Long-duration insurance contracts | 23 | | — | | 22 | | — | |
| Citigroup’s total other comprehensive income (loss) | Citigroup’s total other comprehensive income (loss) | $ | (2,803) | | $ | (1,731) | | $ | (9,533) | | $ | (4,793) | | Citigroup’s total other comprehensive income (loss) | $ | (312) | | $ | (2,803) | | $ | 858 | | $ | (9,533) | |
| Citigroup’s total comprehensive income | Citigroup’s total comprehensive income | $ | 676 | | $ | 2,913 | | $ | 2,799 | | $ | 13,986 | | Citigroup’s total comprehensive income | $ | 3,234 | | $ | 676 | | $ | 11,925 | | $ | 2,799 | |
Add: Other comprehensive income (loss) attributable to
noncontrolling interests | Add: Other comprehensive income (loss) attributable to
noncontrolling interests | $ | (44) | | $ | (31) | | $ | (126) | | $ | (71) | | Add: Other comprehensive income (loss) attributable to
noncontrolling interests | (37) | | (44) | | 9 | | (126) | |
| Add: Net income (loss) attributable to noncontrolling interests | Add: Net income (loss) attributable to noncontrolling interests | 30 | | 24 | | 68 | | 67 | | Add: Net income (loss) attributable to noncontrolling interests | 41 | | 30 | | 122 | | 68 | |
| Total comprehensive income | Total comprehensive income | $ | 662 | | $ | 2,906 | | $ | 2,741 | | $ | 13,982 | | Total comprehensive income | $ | 3,238 | | $ | 662 | | $ | 12,056 | | $ | 2,741 | |
(1)See Note 17.18.
(2)See Note 20.12.
(3)See Note 22.
(4)See Note 8.
The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
| | | | | | | | |
| CONSOLIDATED BALANCE SHEET | | Citigroup Inc. and Subsidiaries |
| | | | | | | | |
| September 30, | |
| 2022 | December 31, |
| In millions of dollars | (Unaudited) | 2021 |
| Assets | | |
| Cash and due from banks (including segregated cash and other deposits) | $ | 26,502 | | $ | 27,515 | |
| Deposits with banks, net of allowance | 273,105 | | 234,518 | |
| Securities borrowed and purchased under agreements to resell (including $229,019 and $216,466 as of September 30, 2022 and December 31, 2021, respectively, at fair value), net of allowance | 349,214 | | 327,288 | |
| Brokerage receivables, net of allowance | 79,696 | | 54,340 | |
| Trading account assets (including $132,928 and $133,828 pledged to creditors as of September 30, 2022 and December 31, 2021, respectively) | 358,260 | | 331,945 | |
| Investments: | | |
| Available-for-sale debt securities (including $7,504 and $9,226 pledged to creditors as of September 30, 2022 and December 31, 2021, respectively), net of allowance | 232,143 | | 288,522 | |
| Held-to-maturity debt securities (fair value of which is $239,807 and $216,038 as of September 30, 2022 and December 31, 2021, respectively) (includes $— and $1,460 pledged to creditors as of September 30, 2022 and December 31, 2021, respectively), net of allowance | 267,864 | | 216,963 | |
| Equity securities (including $850 and $1,032 at fair value as of September 30, 2022 and December 31, 2021, respectively) | 8,009 | | 7,337 | |
| Total investments | $ | 508,016 | | $ | 512,822 | |
| Loans: | | |
| Consumer (including $241 and $12 as of September 30, 2022 and December 31, 2021, respectively, at fair value) | 357,583 | | 376,534 | |
| Corporate (including $3,638 and $6,070 as of September 30, 2022 and December 31, 2021, respectively, at fair value) | 288,377 | | 291,233 | |
| Loans, net of unearned income | $ | 645,960 | | $ | 667,767 | |
| Allowance for credit losses on loans (ACLL) | (16,309) | | (16,455) | |
| Total loans, net | $ | 629,651 | | $ | 651,312 | |
| Goodwill | 19,326 | | 21,299 | |
| Intangible assets (including MSRs of $647 and $404 as of September 30, 2022 and December 31, 2021, respectively, at fair value) | 4,485 | | 4,495 | |
| Other assets (including $9,947 and $12,342 as of September 30, 2022 and December 31, 2021, respectively, at fair value), net of allowance | 132,809 | | 125,879 | |
| | |
| Total assets | $ | 2,381,064 | | $ | 2,291,413 | |
| | | | | | | | |
| September 30, | |
| 2023 | December 31, |
| In millions of dollars | (Unaudited) | 2022 |
| Assets | | |
| Cash and due from banks (including segregated cash and other deposits) | $ | 26,548 | | $ | 30,577 | |
| Deposits with banks, net of allowance | 227,439 | | 311,448 | |
| Securities borrowed and purchased under agreements to resell (including $206,151 and $239,527 as of September 30, 2023 and December 31, 2022, respectively, at fair value), net of allowance | 335,059 | | 365,401 | |
| Brokerage receivables, net of allowance | 66,194 | | 54,192 | |
| Trading account assets (including $179,948 and $133,535 pledged to creditors as of September 30, 2023 and December 31, 2022, respectively) | 406,368 | | 334,114 | |
| Investments: | | |
| Available-for-sale debt securities (including $14,720 and $10,933 pledged to creditors as of September 30, 2023 and December 31, 2022, respectively) | 241,783 | | 249,679 | |
| Held-to-maturity debt securities, net of allowance (fair value of which is $231,002 and $243,648 as of September 30, 2023 and December 31, 2022, respectively) (includes $8 and $0 pledged to creditors as of September 30, 2023 and December 31, 2022, respectively) | 259,456 | | 268,863 | |
| Equity securities (including $738 and $895 as of September 30, 2023 and December 31, 2022, respectively, at fair value) | 7,759 | | 8,040 | |
| Total investments | $ | 508,998 | | $ | 526,582 | |
| Loans: | | |
| Consumer (including $222 and $237 as of September 30, 2023 and December 31, 2022, respectively, at fair value) | 377,714 | | 368,067 | |
| Corporate (including $7,189 and $5,123 as of September 30, 2023 and December 31, 2022, respectively, at fair value) | 288,634 | | 289,154 | |
| Loans, net of unearned income | $ | 666,348 | | $ | 657,221 | |
| Allowance for credit losses on loans (ACLL) | (17,629) | | (16,974) | |
| Total loans, net | $ | 648,719 | | $ | 640,247 | |
| Goodwill | 19,829 | | 19,691 | |
| Intangible assets (including MSRs at fair value of $729 and $665 as of September 30, 2023 and December 31, 2022, respectively) | 4,540 | | 4,428 | |
| Premises and equipment, net of depreciation and amortization | 27,959 | | 26,253 | |
| Other assets (including $13,937 and $10,658 as of September 30, 2023 and December 31, 2022, respectively, at fair value), net of allowance | 96,824 | | 103,743 | |
| | |
| Total assets | $ | 2,368,477 | | $ | 2,416,676 | |
Statement continues on the next page.
CONSOLIDATED BALANCE SHEET Citigroup Inc. and Subsidiaries
(Continued)
| | | | | | | | |
| September 30, | |
| 2022 | December 31, |
| In millions of dollars, except shares and per share amounts | (Unaudited) | 2021 |
| Liabilities | | |
| Non-interest-bearing deposits in U.S. offices | $ | 135,514 | | $ | 158,552 | |
| Interest-bearing deposits in U.S. offices (including $911 and $879 as of September 30, 2022 and December 31, 2021, respectively, at fair value) | 570,920 | | 543,283 | |
| Non-interest-bearing deposits in offices outside the U.S. | 98,904 | | 97,270 | |
| Interest-bearing deposits in offices outside the U.S. (including $1,529 and $787 as of September 30, 2022 and December 31, 2021, respectively, at fair value) | 501,148 | | 518,125 | |
| Total deposits | $ | 1,306,486 | | $ | 1,317,230 | |
| Securities loaned and sold under agreements to repurchase (including $73,107 and $56,694 as of September 30, 2022 and December 31, 2021, respectively, at fair value) | 203,429 | | 191,285 | |
Brokerage payables (including $3,213 and $3,575 as of September 30, 2022 and December 31, 2021, respectively, at fair value) | 87,841 | | 61,430 | |
| Trading account liabilities | 196,479 | | 161,529 | |
| Short-term borrowings (including $6,569 and $7,358 as of September 30, 2022 and December 31, 2021, respectively, at fair value) | 47,368 | | 27,973 | |
| Long-term debt (including $91,825 and $82,609 as of September 30, 2022 and December 31, 2021, respectively, at fair value) | 253,068 | | 254,374 | |
| Other liabilities | 87,276 | | 74,920 | |
| | |
| Total liabilities | $ | 2,181,947 | | $ | 2,088,741 | |
| Stockholders’ equity | | |
Preferred stock ($1.00 par value; authorized shares: 30 million), issued shares: as of September 30, 2022—759,800 and as of December 31, 2021—759,800, at aggregate liquidation value | $ | 18,995 | | $ | 18,995 | |
Common stock ($0.01 par value; authorized shares: 6 billion), issued shares: as of September 30, 2022—3,099,669,424 and as of December 31, 2021—3,099,651,835 | 31 | | 31 | |
| Additional paid-in capital | 108,347 | | 108,003 | |
| Retained earnings | 193,462 | | 184,948 | |
Treasury stock, at cost: September 30, 2022—1,162,816,560 shares and
December 31, 2021—1,115,296,641 shares | (73,977) | | (71,240) | |
Accumulated other comprehensive income (loss) (AOCI) | (48,298) | | (38,765) | |
| Total Citigroup stockholders’ equity | $ | 198,560 | | $ | 201,972 | |
| Noncontrolling interests | 557 | | 700 | |
| Total equity | $ | 199,117 | | $ | 202,672 | |
| Total liabilities and equity | $ | 2,381,064 | | $ | 2,291,413 | |
| | | | | | | | |
| September 30, | |
| 2023 | December 31, |
| In millions of dollars, except shares and per share amounts | (Unaudited) | 2022 |
| Liabilities | | |
Deposits (including $2,722 and $1,875 as of September 30, 2023 and December 31, 2022, respectively, at fair value) | $ | 1,273,506 | | $ | 1,365,954 | |
| Securities loaned and sold under agreements to repurchase (including $60,662 and $70,886 as of September 30, 2023 and December 31, 2022, respectively, at fair value) | 256,770 | | 202,444 | |
Brokerage payables (including $7,211 and $4,439 as of September 30, 2023 and December 31, 2022, respectively, at fair value) | 75,076 | | 69,218 | |
| Trading account liabilities | 164,624 | | 170,647 | |
| Short-term borrowings (including $6,470 and $6,222 as of September 30, 2023 and December 31, 2022, respectively, at fair value) | 43,166 | | 47,096 | |
| Long-term debt (including $112,629 and $105,995 as of September 30, 2023 and December 31, 2022, respectively, at fair value) | 275,760 | | 271,606 | |
| Other liabilities, plus allowances | 69,380 | | 87,873 | |
| | |
| Total liabilities | $ | 2,158,282 | | $ | 2,214,838 | |
| Stockholders’ equity | | |
Preferred stock ($1.00 par value; authorized shares: 30 million), issued shares: as of September 30, 2023—779,800 and as of December 31, 2022—759,800, at aggregate liquidation value | $ | 19,495 | | $ | 18,995 | |
Common stock ($0.01 par value; authorized shares: 6 billion), issued shares: as of September 30, 2023—3,099,691,671 and as of December 31, 2022—3,099,669,424 | 31 | | 31 | |
| Additional paid-in capital | 108,757 | | 108,458 | |
| Retained earnings | 202,135 | | 194,734 | |
Treasury stock, at cost: September 30, 2023—1,185,809,738 shares and
December 31, 2022—1,162,682,999 shares | (74,738) | | (73,967) | |
Accumulated other comprehensive income (loss) (AOCI) | (46,177) | | (47,062) | |
| Total Citigroup stockholders’ equity | $ | 209,503 | | $ | 201,189 | |
| Noncontrolling interests | 692 | | 649 | |
| Total equity | $ | 210,195 | | $ | 201,838 | |
| Total liabilities and equity | $ | 2,368,477 | | $ | 2,416,676 | |
The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
| | | | | | | | |
| CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) | | Citigroup Inc. and Subsidiaries |
| | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | 2023 | 2022 | 2023 | 2022 |
| Preferred stock at aggregate liquidation value | | | | |
| Balance, beginning of period | $ | 20,245 | | $ | 18,995 | | $ | 18,995 | | $ | 18,995 | |
| Issuance of new preferred stock | 1,500 | | — | | 2,750 | | — | |
| Redemption of preferred stock | (2,250) | | — | | (2,250) | | — | |
| Balance, end of period | $ | 19,495 | | $ | 18,995 | | $ | 19,495 | | $ | 18,995 | |
| Common stock and additional paid-in capital (APIC) | | | | |
| Balance, beginning of period | $ | 108,610 | | $ | 108,241 | | $ | 108,489 | | $ | 108,034 | |
| Employee benefit plans | 170 | | 137 | | 296 | | 343 | |
| Preferred stock issuance costs (reclassifications to retained earnings for redemptions) | 16 | | — | | 16 | | — | |
| Other (primarily preferred stock issuance costs related to new issuances) | (8) | | — | | (13) | | 1 | |
| Balance, end of period | $ | 108,788 | | $ | 108,378 | | $ | 108,788 | | $ | 108,378 | |
| Retained earnings | | | | |
| Balance, beginning of period | $ | 199,976 | | $ | 191,261 | | $ | 194,734 | | $ | 184,948 | |
Adjustment to opening balance, net of taxes(1) | | | | |
| | | | |
| | | | |
| Financial instruments—TDRs and vintage disclosures | — | | — | | 290 | | — | |
| Adjusted balance, beginning of period | $ | 199,976 | | $ | 191,261 | | $ | 195,024 | | $ | 184,948 | |
| Citigroup’s net income | 3,546 | | 3,479 | | 11,067 | | 12,332 | |
Common dividends(2) | (1,038) | | (1,001) | | (3,042) | | (3,025) | |
| Preferred dividends | (333) | | (277) | | (898) | | (794) | |
| Other (primarily reclassifications from APIC for preferred issuance costs on redemptions) | (16) | | — | | (16) | | 1 | |
| Balance, end of period | $ | 202,135 | | $ | 193,462 | | $ | 202,135 | | $ | 193,462 | |
| Treasury stock, at cost | | | | |
| Balance, beginning of period | $ | (74,247) | | $ | (73,988) | | $ | (73,967) | | $ | (71,240) | |
Employee benefit plans(3) | 9 | | 11 | | 729 | | 513 | |
Treasury stock acquired(4) | (500) | | — | | (1,500) | | (3,250) | |
| Balance, end of period | $ | (74,738) | | $ | (73,977) | | $ | (74,738) | | $ | (73,977) | |
| Citigroup’s accumulated other comprehensive income (loss) | | | | |
| Balance, beginning of period | $ | (45,865) | | $ | (45,495) | | $ | (47,062) | | $ | (38,765) | |
Adjustment to opening balance, net of taxes(1) | — | | — | | 27 | | — | |
| Adjusted balance, beginning of period | $ | (45,865) | | $ | (45,495) | | $ | (47,035) | | $ | (38,765) | |
| Citigroup’s total other comprehensive income | (312) | | (2,803) | | 858 | | (9,533) | |
| Balance, end of period | $ | (46,177) | | $ | (48,298) | | $ | (46,177) | | $ | (48,298) | |
| Total Citigroup common stockholders’ equity | $ | 190,008 | | $ | 179,565 | | $ | 190,008 | | $ | 179,565 | |
| Total Citigroup stockholders’ equity | $ | 209,503 | | $ | 198,560 | | $ | 209,503 | | $ | 198,560 | |
| Noncontrolling interests | | | | |
| Balance, beginning of period | $ | 703 | | $ | 612 | | $ | 649 | | $ | 700 | |
| | | | |
| Transactions between Citigroup and noncontrolling-interest shareholders | (15) | | — | | (14) | | (34) | |
| Net income attributable to noncontrolling-interest shareholders | 41 | | 30 | | 122 | | 68 | |
| Distributions paid to noncontrolling-interest shareholders | — | | (39) | | (82) | | (51) | |
Other comprehensive income (loss) attributable to noncontrolling-interest shareholders | (37) | | (44) | | 9 | | (126) | |
| Other | — | | (2) | | 8 | | — | |
| Net change in noncontrolling interests | $ | (11) | | $ | (55) | | $ | 43 | | $ | (143) | |
| Balance, end of period | $ | 692 | | $ | 557 | | $ | 692 | | $ | 557 | |
| Total equity | $ | 210,195 | | $ | 199,117 | | $ | 210,195 | | $ | 199,117 | |
(1) See Note 1 for additional details.
(2) Common dividends declared were $0.51 per share for each of 1Q23 and 2Q23, $0.53 per share for 3Q23 and $0.51 per share for each of 1Q22, 2Q22 and 3Q22.
(3) Includes treasury stock related to (i) certain activity on employee stock option program exercises where the employee delivers existing shares to cover the option exercise, or (ii) under Citi’s employee restricted or deferred stock programs where shares are withheld to satisfy tax requirements.
(4) Primarily consists of open market purchases under Citi’s Board of Directors–approved common stock repurchase program.
The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
| | | | | | | | |
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) | | Citigroup Inc. and Subsidiaries |
| | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | 2022 | 2021 | 2022 | 2021 |
| Preferred stock at aggregate liquidation value | | | | |
| Balance, beginning of period | $ | 18,995 | | $ | 17,995 | | $ | 18,995 | | $ | 19,480 | |
| Issuance of new preferred stock | — | | — | | — | | 2,300 | |
| Redemption of preferred stock | — | | — | | — | | (3,785) | |
| Balance, end of period | $ | 18,995 | | $ | 17,995 | | $ | 18,995 | | $ | 17,995 | |
| Common stock and additional paid-in capital (APIC) | | | | |
| Balance, beginning of period | $ | 108,241 | | $ | 107,851 | | $ | 108,034 | | $ | 107,877 | |
| Employee benefit plans | 137 | | 60 | | 343 | | (3) | |
| Preferred stock issuance costs (new issuances, net of reclassifications to retained earnings for redemptions) | — | | — | | — | | 40 | |
| Other | — | | 42 | | 1 | | 39 | |
| Balance, end of period | $ | 108,378 | | $ | 107,953 | | $ | 108,378 | | $ | 107,953 | |
| Retained earnings | | | | |
| Balance, beginning of period | $ | 191,261 | | $ | 179,686 | | $ | 184,948 | | $ | 168,272 | |
| | | | |
| | | | |
| | | | |
| | | | |
| Citigroup’s net income | 3,479 | | 4,644 | | 12,332 | | 18,779 | |
Common dividends(1) | (1,001) | | (1,040) | | (3,025) | | (3,176) | |
| Preferred dividends | (277) | | (266) | | (794) | | (811) | |
| Other (primarily reclassifications from APIC for preferred issuance costs on redemptions) | — | | — | | 1 | | (40) | |
| Balance, end of period | $ | 193,462 | | $ | 183,024 | | $ | 193,462 | | $ | 183,024 | |
| Treasury stock, at cost | | | | |
| Balance, beginning of period | $ | (73,988) | | $ | (68,253) | | $ | (71,240) | | $ | (64,129) | |
Employee benefit plans(2) | 11 | | 7 | | 513 | | 483 | |
Treasury stock acquired(3) | — | | (3,000) | | (3,250) | | (7,600) | |
| Balance, end of period | $ | (73,977) | | $ | (71,246) | | $ | (73,977) | | $ | (71,246) | |
| Citigroup’s accumulated other comprehensive income (loss) | | | | |
| Balance, beginning of period | $ | (45,495) | | $ | (35,120) | | $ | (38,765) | | $ | (32,058) | |
| | | | |
| | | | |
| Citigroup’s total other comprehensive income | (2,803) | | (1,731) | | (9,533) | | (4,793) | |
| Balance, end of period | $ | (48,298) | | $ | (36,851) | | $ | (48,298) | | $ | (36,851) | |
| Total Citigroup common stockholders’ equity | $ | 179,565 | | $ | 182,880 | | $ | 179,565 | | $ | 182,880 | |
| Total Citigroup stockholders’ equity | $ | 198,560 | | $ | 200,875 | | $ | 198,560 | | $ | 200,875 | |
| Noncontrolling interests | | | | |
| Balance, beginning of period | $ | 612 | | $ | 751 | | $ | 700 | | $ | 758 | |
| Transactions between noncontrolling-interest shareholders and the related consolidated subsidiary | — | | — | | — | | — | |
| Transactions between Citigroup and the noncontrolling-interest shareholders | — | | 1 | | (34) | | 2 | |
| Net income attributable to noncontrolling-interest shareholders | 30 | | 24 | | 68 | | 67 | |
| Distributions paid to noncontrolling-interest shareholders | (39) | | — | | (51) | | — | |
Other comprehensive income (loss) attributable to noncontrolling-interest shareholders | (44) | | (31) | | (126) | | (71) | |
| Other | (2) | | (10) | | — | | (21) | |
| Net change in noncontrolling interests | $ | (55) | | $ | (16) | | $ | (143) | | $ | (23) | |
| Balance, end of period | $ | 557 | | $ | 735 | | $ | 557 | | $ | 735 | |
| Total equity | $ | 199,117 | | $ | 201,610 | | $ | 199,117 | | $ | 201,610 | |
(1) Common dividends declared were $0.51 per share for each of the first, second and third quarters of 2022 and 2021.
(2) Includes treasury stock related to (i) certain activity on employee stock option program exercises where the employee delivers existing shares to cover the option exercise, or (ii) under Citi’s employee restricted or deferred stock programs where shares are withheld to satisfy tax requirements.
(3) Primarily consists of open market purchases under Citi’s Board of Directors-approved common share repurchase program.
The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
| | | | | | | | |
CONSOLIDATED STATEMENT OF CASH FLOWS | | Citigroup Inc. and Subsidiaries |
| (UNAUDITED) | | |
| | | | Nine Months Ended September 30, | | Nine Months Ended September 30, |
| In millions of dollars | In millions of dollars | 2022 | 2021 | In millions of dollars | 2023 | 2022 |
| Cash flows from operating activities of continuing operations | Cash flows from operating activities of continuing operations | | Cash flows from operating activities of continuing operations | |
| Net income before attribution of noncontrolling interests | Net income before attribution of noncontrolling interests | $ | 12,400 | | $ | 18,846 | | Net income before attribution of noncontrolling interests | $ | 11,189 | | $ | 12,400 | |
| Net income attributable to noncontrolling interests | Net income attributable to noncontrolling interests | 68 | | 67 | | Net income attributable to noncontrolling interests | 122 | | 68 | |
| Citigroup’s net income | Citigroup’s net income | $ | 12,332 | | $ | 18,779 | | Citigroup’s net income | $ | 11,067 | | $ | 12,332 | |
| Income (loss) from discontinued operations, net of taxes | Income (loss) from discontinued operations, net of taxes | (229) | | 7 | | Income (loss) from discontinued operations, net of taxes | — | | (229) | |
| | Income from continuing operations—excluding noncontrolling interests | Income from continuing operations—excluding noncontrolling interests | $ | 12,561 | | $ | 18,772 | | Income from continuing operations—excluding noncontrolling interests | $ | 11,067 | | $ | 12,561 | |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities of continuing operations | Adjustments to reconcile net income to net cash provided by (used in) operating activities of continuing operations | | Adjustments to reconcile net income to net cash provided by (used in) operating activities
of continuing operations | |
Net loss (gain) on sale of significant disposals(1) | Net loss (gain) on sale of significant disposals(1) | (616) | | 680 | | Net loss (gain) on sale of significant disposals(1) | (1,462) | | (616) | |
| | Depreciation and amortization | Depreciation and amortization | 3,154 | | 2,979 | | Depreciation and amortization | 3,388 | | 3,154 | |
| | Deferred income taxes | Deferred income taxes | (576) | | 1,393 | | Deferred income taxes | (979) | | (576) | |
| Provisions for credit losses on loans and unfunded lending commitments | 3,216 | | (3,388) | | |
Provisions for credit losses and for benefits and claims(2) | | Provisions for credit losses and for benefits and claims(2) | 5,639 | | 3,394 | |
| Realized gains from sales of investments | Realized gains from sales of investments | (74) | | (655) | | Realized gains from sales of investments | (151) | | (74) | |
| Impairment losses on investments and other assets | Impairment losses on investments and other assets | 277 | | 112 | | Impairment losses on investments and other assets | 227 | | 277 | |
| Goodwill impairment | Goodwill impairment | 535 | | — | | Goodwill impairment | — | | 535 | |
| Change in trading account assets | Change in trading account assets | (26,385) | | 32,111 | | Change in trading account assets | (72,397) | | (26,385) | |
| Change in trading account liabilities | Change in trading account liabilities | 34,950 | | 11,259 | | Change in trading account liabilities | (6,023) | | 34,950 | |
| Change in brokerage receivables net of brokerage payables | Change in brokerage receivables net of brokerage payables | 1,055 | | (4,664) | | Change in brokerage receivables net of brokerage payables | (6,144) | | 1,055 | |
| Change in loans HFS | 3,499 | | (3,068) | | |
| Change in loans held-for-sale (HFS) | | Change in loans held-for-sale (HFS) | 2,117 | | 3,499 | |
| Change in other assets | Change in other assets | (2,754) | | (3,174) | | Change in other assets | (7,134) | | (2,754) | |
| Change in other liabilities | Change in other liabilities | 1,303 | | 8,989 | | Change in other liabilities | (3,715) | | 1,303 | |
| Other, net | (34,315) | | (2,161) | | |
Other, net(2)(3) | | Other, net(2)(3) | 6,817 | | (18,067) | |
| Total adjustments | Total adjustments | $ | (16,731) | | $ | 40,413 | | Total adjustments | $ | (79,817) | | $ | (305) | |
| Net cash provided by (used in) operating activities of continuing operations | Net cash provided by (used in) operating activities of continuing operations | $ | (4,170) | | $ | 59,185 | | Net cash provided by (used in) operating activities of continuing operations | $ | (68,750) | | $ | 12,256 | |
| Cash flows from investing activities of continuing operations | Cash flows from investing activities of continuing operations | | Cash flows from investing activities of continuing operations | |
| Change in securities borrowed and purchased under agreements to resell | Change in securities borrowed and purchased under agreements to resell | $ | (21,926) | | $ | (42,984) | | Change in securities borrowed and purchased under agreements to resell | $ | 30,342 | | $ | (21,926) | |
| Change in loans | Change in loans | (5,788) | | 6,613 | | Change in loans | (17,733) | | (5,788) | |
| Proceeds from divestitures(1) | | Proceeds from divestitures(1) | — | | 3,242 | |
| Proceeds from sales and securitizations of loans | Proceeds from sales and securitizations of loans | 3,077 | | 1,134 | | Proceeds from sales and securitizations of loans | 3,397 | | 3,077 | |
Proceeds from divestitures(1) | 3,242 | | — | | |
Available-for-sale debt securities(2): | | |
| Purchases of investments | (177,306) | | (164,613) | | |
Net payment due to transfer of net liabilities associated with divestitures(1) | | Net payment due to transfer of net liabilities associated with divestitures(1) | (1,166) | | — | |
| Available-for-sale (AFS) debt securities | | Available-for-sale (AFS) debt securities | |
Purchases of investments(2)(3) | | Purchases of investments(2)(3) | (171,154) | | (177,347) | |
| Proceeds from sales of investments | Proceeds from sales of investments | 86,454 | | 96,022 | | Proceeds from sales of investments | 35,580 | | 86,454 | |
Proceeds from maturities of investments | Proceeds from maturities of investments | 118,951 | | 90,415 | | Proceeds from maturities of investments | 149,049 | | 102,857 | |
Held-to-maturity debt securities(2): | | |
| Held-to-maturity (HTM) debt securities | | Held-to-maturity (HTM) debt securities | |
| Purchases of investments | Purchases of investments | (39,288) | | (112,883) | | Purchases of investments | (734) | | (39,288) | |
| Proceeds from maturities of investments | Proceeds from maturities of investments | 9,913 | | 16,946 | | Proceeds from maturities of investments | 6,955 | | 9,913 | |
| | Capital expenditures on premises and equipment and capitalized software | Capital expenditures on premises and equipment and capitalized software | (3,667) | | (2,811) | | Capital expenditures on premises and equipment and capitalized software | (4,818) | | (3,667) | |
Proceeds from sales of premises and equipment, subsidiaries and affiliates
and repossessed assets | 46 | | 143 | | |
| Proceeds from sales of premises and equipment and repossessed assets | | Proceeds from sales of premises and equipment and repossessed assets | 16 | | 46 | |
| | Other, net | (530) | | (51) | | |
| Net cash used in investing activities of continuing operations | $ | (26,822) | | $ | (112,069) | | |
Other, net(2)(3) | | Other, net(2)(3) | 273 | | (821) | |
| Net cash provided by (used in) investing activities of continuing operations | | Net cash provided by (used in) investing activities of continuing operations | $ | 30,007 | | $ | (43,248) | |
| Cash flows from financing activities of continuing operations | Cash flows from financing activities of continuing operations | | Cash flows from financing activities of continuing operations | | |
| Dividends paid | Dividends paid | $ | (3,777) | | $ | (3,959) | | Dividends paid | $ | (3,899) | | $ | (3,777) | |
| Issuance of preferred stock | Issuance of preferred stock | — | | 2,300 | | Issuance of preferred stock | 2,739 | | — | |
| Redemption of preferred stock | Redemption of preferred stock | — | | (3,785) | | Redemption of preferred stock | (750) | | — | |
| | CONSOLIDATED STATEMENT OF CASH FLOWS | CONSOLIDATED STATEMENT OF CASH FLOWS | | CONSOLIDATED STATEMENT OF CASH FLOWS | |
| (UNAUDITED) (Continued) | (UNAUDITED) (Continued) | | (UNAUDITED) (Continued) | |
| | Nine Months Ended September 30, | | Nine Months Ended September 30, |
| In millions of dollars | In millions of dollars | 2022 | 2021 | In millions of dollars | 2023 | 2022 |
| Treasury stock acquired | Treasury stock acquired | $ | (3,250) | | $ | (7,448) | | Treasury stock acquired | $ | (1,429) | | $ | (3,250) | |
| Stock tendered for payment of withholding taxes | Stock tendered for payment of withholding taxes | (339) | | (328) | | Stock tendered for payment of withholding taxes | (324) | | (339) | |
| Change in securities loaned and sold under agreements to repurchase | Change in securities loaned and sold under agreements to repurchase | 12,144 | | 9,659 | | Change in securities loaned and sold under agreements to repurchase | 54,326 | | 12,144 | |
| Issuance of long-term debt | Issuance of long-term debt | 85,459 | | 53,961 | | Issuance of long-term debt | 52,465 | | 85,459 | |
| Payments and redemptions of long-term debt | Payments and redemptions of long-term debt | (47,011) | | (56,472) | | Payments and redemptions of long-term debt | (50,296) | | (47,011) | |
| Change in deposits | Change in deposits | 8,947 | | 73,769 | | Change in deposits | (92,448) | | 8,947 | |
| Change in short-term borrowings | Change in short-term borrowings | 19,395 | | 169 | | Change in short-term borrowings | (5,430) | | 19,395 | |
| Net cash provided by financing activities of continuing operations | $ | 71,568 | | $ | 67,866 | | |
| Effect of exchange rate changes on cash and due from banks | $ | (3,002) | | $ | (789) | | |
| Net cash provided by (used in) financing activities of continuing operations | | Net cash provided by (used in) financing activities of continuing operations | $ | (45,046) | | $ | 71,568 | |
| Effect of exchange rate changes on cash, due from banks and deposits with banks | | Effect of exchange rate changes on cash, due from banks and deposits with banks | $ | (4,249) | | $ | (3,002) | |
| | Change in cash, due from banks and deposits with banks | Change in cash, due from banks and deposits with banks | 37,574 | | 14,193 | | Change in cash, due from banks and deposits with banks | (88,038) | | 37,574 | |
| Cash, due from banks and deposits with banks at beginning of period | Cash, due from banks and deposits with banks at beginning of period | 262,033 | | 309,615 | | Cash, due from banks and deposits with banks at beginning of period | 342,025 | | 262,033 | |
| Cash, due from banks and deposits with banks at end of period | Cash, due from banks and deposits with banks at end of period | $ | 299,607 | | $ | 323,808 | | Cash, due from banks and deposits with banks at end of period | $ | 253,987 | | $ | 299,607 | |
| Cash and due from banks (including segregated cash and other deposits) | Cash and due from banks (including segregated cash and other deposits) | $ | 26,502 | | $ | 28,906 | | Cash and due from banks (including segregated cash and other deposits) | $ | 26,548 | | $ | 26,502 | |
| Deposits with banks, net of allowance | Deposits with banks, net of allowance | 273,105 | | 294,902 | | Deposits with banks, net of allowance | 227,439 | | 273,105 | |
| Cash, due from banks and deposits with banks at end of period | Cash, due from banks and deposits with banks at end of period | $ | 299,607 | | $ | 323,808 | | Cash, due from banks and deposits with banks at end of period | $ | 253,987 | | $ | 299,607 | |
| Supplemental disclosure of cash flow information for continuing operations | Supplemental disclosure of cash flow information for continuing operations | | Supplemental disclosure of cash flow information for continuing operations | |
| Cash paid during the period for income taxes | Cash paid during the period for income taxes | $ | 2,684 | | $ | 3,063 | | Cash paid during the period for income taxes | $ | 4,071 | | $ | 2,684 | |
| Cash paid during the period for interest | Cash paid during the period for interest | 12,557 | | 5,983 | | Cash paid during the period for interest | 51,873 | | 12,557 | |
Non-cash investing activities(3)(5) | Non-cash investing activities(3)(5) | | | Non-cash investing activities(3)(5) | | |
| | Transfer of investment securities from HTM to AFS | | Transfer of investment securities from HTM to AFS | $ | 3,324 | | $ | — | |
| Transfer of investment securities from AFS to HTM | Transfer of investment securities from AFS to HTM | $ | 21,688 | | $ | — | | Transfer of investment securities from AFS to HTM | — | | 21,688 | |
| Decrease in net loans associated with divestitures reclassified to HFS | Decrease in net loans associated with divestitures reclassified to HFS | 16,956 | | 8,291 | | Decrease in net loans associated with divestitures reclassified to HFS | — | | 16,956 | |
| | Decrease in goodwill associated with divestitures reclassified to HFS | Decrease in goodwill associated with divestitures reclassified to HFS | 876 | | — | | Decrease in goodwill associated with divestitures reclassified to HFS | — | | 876 | |
| Transfers to loans HFS (Other assets) from loans | 4,037 | | 5,329 | | |
Transfers to loans HFS (Other assets) from loans HFI | | Transfers to loans HFS (Other assets) from loans HFI | 6,031 | | 4,037 | |
Transfers from loans HFS (Other assets) to loans HFI | | Transfers from loans HFS (Other assets) to loans HFI | 322 | | — | |
| Non-cash financing activities(1) | | |
Non-cash financing activities(1)(5) | | Non-cash financing activities(1)(5) | |
| Decrease in deposits associated with divestitures reclassified to HFS | Decrease in deposits associated with divestitures reclassified to HFS | $ | 19,691 | | $ | 6,912 | | Decrease in deposits associated with divestitures reclassified to HFS | $ | — | | $ | 19,691 | |
| Decrease in long-term debt associated with divestitures reclassified to HFS | — | | 521 | | |
| | Non-cash redemption of preferred stock and increase in short-term borrowings | | Non-cash redemption of preferred stock and increase in short-term borrowings | 1,500 | | — | |
|
(1) See Note 2 for further information on significant disposals.
(2) Citi has2022 amounts have been revised to conform to the current-period presentation.
(3) Consistent with the revisions disclosed in “Statement of Cash Flows” in Note 1 to the Consolidated StatementFinancial Statements in Citi’s 2022 Form 10-K, during the nine months ended September 30, 2022, $16.1 billion of Cash Flowscash flows related to presentmaturities of short-term negotiable certificates of deposit (NCDs) and $41 million of cash flows related to purchases of investments, sales of investmentsshort-term NCDs were reclassified from purchases and proceeds from maturities of investments separately between available-for-sale debtAFS securities and held-to-maturity debt securities.within investing activities to Other, net within operating activities.
(4) In January 2023, Citi had no salesadopted ASU 2022-01. Upon adoption, Citi transferred $3.3 billion of held-to-maturity debtmortgage-backed securities duringfrom HTM classification to AFS classification as allowed under the periods presented.ASU. At the time of transfer, the securities were in an unrealized gain position of $0.1 billion, which was recorded in AOCI upon transfer.
(3)(5) Operating and finance lease right-of-use assets and lease liabilities represent non-cash investing and financing activities, respectively, and are not included in the non-cash investing activities presented here. See Note 2325 for more information and balances as of September 30, 2022.2023.
The Notes to the Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. BASIS OF PRESENTATION, UPDATED ACCOUNTING POLICIES AND ACCOUNTING CHANGES
Basis of Presentation
The accompanying unaudited Consolidated Financial Statements as of September 30, 20222023 and for the three- and nine-month periods ended September 30, 20222023 and 20212022 include the accounts of Citigroup Inc. and its consolidated subsidiaries.
In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation have been reflected. The accompanying unaudited Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and related notes included within Citigroup’s Annual Report on Form 10-K for the year ended December 31, 2021, Citigroup’s Current Report on Form 8-K dated May 10, 2022 (as amended by a Current Report on Form 8-K/A dated May 10, 2022) with Historical Consolidated Financial Statements and Notes conformed to reflect changes in Citigroup’s reportable segments from those contained in Citi’s 2021 Annual Report on Form 10-K included as an exhibit thereto (such Current Report on Form 8-K together with Citigroup’s 2021 Annual Report on Form 10-K, collectively referred to as the 2021(2022 Form 10-K), Citigroup’s Quarterly Report on Form 10-Q for the quarter ended March 31, 20222023 (First Quarter of 20222023 Form 10-Q), and Citigroup’s Quarterly Report on Form 10-Q for the quarter ended June 30, 20222023 (Second Quarter of 20222023 Form 10-Q).
Certain financial information that is normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), but is not required for interim reporting purposes, has been condensed or omitted.
Management must make estimates and assumptions that affect the Consolidated Financial Statements and the related footnote disclosures. While management uses its best judgment, actual results could differ from those estimates.
As noted above, the Notes to these Consolidated Financial Statements are unaudited.
Throughout these Notes, “Citigroup,” “Citi” and “the Company” refer to Citigroup Inc. and its consolidated subsidiaries.
Certain reclassifications and updates have been made to the prior periods’ financial statements and notes to conform to the current period’s presentation.
SUMMARY OF
UPDATED SIGNIFICANT ACCOUNTING POLICIES
The accounting policies below have been updated from those disclosed in Citi’s 2022 Form 10-K for the effects of accounting standards adopted during the first quarter of 2023.
See Note 1 to the Consolidated Financial Statements in Citigroup’s 2021Citi’s 2022 Form 10-K for a summary of all of Citigroup’s significant accounting policies.
Allowances for Credit Losses (ACL)
Beginning January 1, 2023, Citi adopted the Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures under the methodology described below. For information about Citi’s accounting for troubled debt restructurings (TDRs) prior to January 1, 2023, see Note 1 to the Consolidated Financial Statements in Citi’s 2022 Form 10-K.
ACCOUNTING CHANGES
Voluntary Change in Goodwill Impairment Assessment DateTDRs and Vintage Disclosures
During the third quarter ofIn March 2022, the Company voluntarily changed its annual goodwill impairment assessment date from JulyFASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. Citi adopted the ASU on January 1, to October 1. See Note 15 for additional information.
Multiple Macroeconomic Scenarios-Based ACL Approach
During the second quarter of 2022, Citi refined its ACL methodology to utilize multiple macroeconomic scenarios to estimate its allowance for credit losses. The ACL was previously estimated using a combination of a single base-case forecast scenario as part of its quantitative component and a qualitative management adjustment to reflect economic uncertainty from downside macroeconomic scenarios. As a result of this change, Citi now explicitly incorporates multiple macroeconomic scenarios—base, upside, and downside—and associated probabilities in the quantitative component when estimating its ACL.
This refinement represents a “change in accounting estimate” under ASC Topic 250, Accounting Changes and Error Corrections, with prospective application beginning in the period of change. This change in accounting estimateAdopting these amendments resulted in a decrease to the ACLL of approximately $0.3 billion$352 million and an increase in other assets related to held-for-sale businesses of $44 million, with a corresponding increase to retained earnings of $290 million and a decrease in deferred tax assets of $106 million on January 1, 2023. The ACL for corporate loans was unaffected because the measurement approach used for corporate loans is not in the allowancescope of this ASU.
ASU 2022-02 eliminates the accounting and disclosure requirements for TDRs, including the requirement to measure the ACLL for TDRs using a discounted cash flow (DCF) approach. With the elimination of TDR accounting requirements, reasonably expected TDRs are no longer considered when determining the term over which to estimate expected credit losses inlosses. The ACLL for modified loans that are collateral dependent continues to be based on the second quarterfair value of 2022, partially offsetting an increase of $0.8 billion in the allowance for credit losses due to the increased macroeconomic uncertainty and other factors in the second quarter of 2022.collateral.
Accounting for Deposit Insurance ExpensesConsumer Loans
During the fourth quarter of 2021, Citi changed its presentationUpon adoption of the deposit insurance costs paid toASU on January 1, 2023, Citi discontinued the Federal Deposit Insurance Corporation (FDIC) and similar foreign regulators. These costs were previously presented within Interest expense and, asuse of a result of this change, are now presented within Other operating expenses.DCF approach for consumer loans formerly considered TDRs. Beginning January 1, 2023, Citi concludedmeasures the ACLL for all consumer loans under approaches that this presentation was preferable in Citi’s circumstances, as it better reflected the nature of these deposit insurance costs in that these costs do not directly represent interest payments to creditors, but are similar in nature to other payments to regulatory agenciesincorporate discounting, primarily utilizing models that are accountedconsider the borrowers’ probability of default, loss given default and exposure at default. In addition, upon adoption of the ASU, Citi collectively evaluates smaller-balance homogeneous loans formerly considered TDRs for as operating expenses.
This change in income statement presentation represents a “change in accounting principle” under ASC Topic 250, Accounting Changes and Error Corrections, with retrospective application to the earliest period presented. This change in accounting principle resulted in a reclassification of $293 million and $912 million of deposit insurance expenses from Interest expense to Other operating expenses, for the quarter and nine months ended September 30, 2021. This change had no impact on Citi’s net income or the total deposit insurance expense incurred by Citi.
credit losses, whereas previously those loans had been individually evaluated.
The ASU also requires disclosure of modifications of loans to borrowers experiencing financial difficulty if the modification involves principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, a term extension or a combination of those types of modifications. In addition, the ASU requires the disclosure of current-period gross write-offs by year of loan origination (vintage). The amendments related to disclosures are required to be applied prospectively beginning as of the date of adoption. See Note 13 for these new disclosures for periods beginning on and after January 1, 2023.
Long-Duration Insurance Contracts
In August 2018, the FASB issued ASU No. 2018-12, Financial Services—Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts, which changes the existing recognition, measurement, presentation and disclosures for long-duration contracts issued by an insurance entity. Specifically, the guidance (i) improves the timeliness of recognizing changes in the liability for future policy benefits and prescribes the rate used to discount future cash flows for long-duration insurance contracts, (ii) simplifies and improves the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts, (iii) simplifies the amortization of deferred acquisition costs and (iv) introduces additional quantitative and qualitative disclosures. Citi has certain insurance subsidiaries, primarily in Mexico, that issue long-duration insurance contracts such as traditional life insurance policies and life-contingent annuity contracts that are impacted by the requirements of ASU 2018-12.
Citi adopted the targeted improvements in ASU 2018-12 on January 1, 2023, resulting in a $39 million decrease in Other liabilities and a $27 million increase in AOCI, after-tax.
FUTURE ACCOUNTING CHANGES
Accounting for Investments in Tax Credit Structures
In March 2023, the FASB issued ASU No. 2023‐02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. The ASU expands the scope of tax equity investments eligible to apply the proportional amortization method of accounting. Under the proportional amortization method, the cost of an eligible investment is amortized in proportion to the income tax credits and other income tax benefits that are received by the investor, with the amortization of the investment and the income tax credits being presented net in the income statement as components of income tax expense (benefit). The ASU will permit the Company to elect to use the proportional amortization method to account for all eligible tax equity investments, regardless of the tax credit program from which the income tax credits are received, if certain conditions are met. Citi plans to adopt the ASU on January 1, 2024 and does not expect a material impact to its results of operations as a result of adopting the standard.
Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions
In June 2022, the FASB issued Accounting Standards Update (ASU) 2022-3,ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The ASU was issued to address diversity in practice whereby certain entities included the impact of contractual restrictions when valuing equity securities, and it clarifies that a contractual restriction on the sale of an equity security should not be considered part of the unit of account of the equity security and, therefore, should not be considered in measuring fair value. The ASU also includes requirements for entities to disclose the fair value of equity securities subject to contractual sale restrictions, the nature and remaining duration of the restrictions and the circumstances that could cause a lapse in the restrictions.
The ASU is to be adopted on a prospective basis and will be effective for CitigroupCiti on January 1, 2024 although early adoption is permitted. Adoption of the accounting standardand is not expected to have an impact on Citi’s operating results or financial position, as the Company excludes such restrictions when valuing equity securities.
Troubled Debt Restructurings and Vintage Disclosures
In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. Citi will adopt the ASU on its effective date, January 1, 2023 (early adoption is permitted). The ASU eliminates the requirement to measure the ACLL for TDRs using a discounted cash flow (DCF) approach. Citi expects to discontinue the use of a DCF approach for consumer loans upon adoption, which will result in an adjustment to the opening balances of the ACLL and retained earnings. The ASU will not affect the measurement of the ACLL for corporate loans. Citi is currently evaluating the potential impact on its Consolidated Financial Statements. The ASU also enhances disclosure of modifications of loans made to borrowers experiencing financial difficulty and requires that an entity disclose current-period gross write-offs by year of loan origination in credit quality disclosures. The amendments related to disclosures are required to be applied prospectively beginning as of the date of adoption.
Long-Duration Insurance Contracts
In August 2018, the FASB issued ASU No. 2018-12, Financial Services—Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts, which changes the existing recognition, measurement, presentation and disclosures for long-duration contracts issued by an insurance entity. Specifically, the guidance (i) improves the timeliness of recognizing changes in the liability for future policy benefits and prescribes the rate used to discount future cash flows for long-duration insurance contracts, (ii) simplifies and improves the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts, (iii) simplifies the amortization of deferred acquisition costs and (iv) introduces additional quantitative and qualitative disclosures. Citi has certain insurance subsidiaries, primarily
in Mexico, that issue long-duration insurance contracts such as traditional life insurance policies and life-contingent annuity contracts that will be impacted by the requirements of ASU 2018-12.
The effective date of ASU 2018-12 was deferred for all insurance entities by ASU 2019-09, Financial Services—Insurance: Effective Date (issued in October 2019) and by ASU 2020-11, Financial Services—Insurance: Effective Date and Early Application (issued in November 2020). Citi plans to adopt the targeted improvements in ASU 2018-12 on January 1, 2023 and is currently evaluating the impact of the standard on its insurance subsidiaries. Citi does not expect a material impact to its results of operations or financial condition as a result of adopting the standard.
position.
2. DISCONTINUED OPERATIONS, SIGNIFICANT DISPOSALS AND OTHER BUSINESS EXITS
Summary of Discontinued Operations
The Company’s results from Discontinued operations consisted of residual activities related to previously divested operations.the sales of the Egg Banking plc credit card business in 2011 and the German retail banking business in 2008. All Discontinued operations results are recorded within Corporate/Other.
The following table summarizes financial information for all Discontinued operations:
| | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, | | | | |
| In millions of dollars | 2022 | 2021 | 2022 | 2021 | | | | |
| Total revenues, net of interest expense | $ | — | | $ | — | | $ | — | | $ | — | | | | | |
Income (loss) from discontinued operations(1) | $ | (6) | | $ | (1) | | $ | (270) | | $ | 7 | | | | | |
| | | | | | | | |
| Benefit for income taxes | — | | — | | (41) | | — | | | | | |
Income (loss) from discontinued operations,
net of taxes | $ | (6) | | $ | (1) | | $ | (229) | | $ | 7 | | | | | |
(1)Amounts in each period relate to the sale of the Egg Banking business in 2011. | | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | 2023 | 2022 | 2023 | 2022 |
| Total revenues, net of interest expense | $ | — | | $ | — | | $ | — | | $ | (262) | |
| Income (loss) from discontinued operations | $ | 2 | | $ | (6) | | $ | — | | $ | (270) | |
| | | | |
| Benefit for income taxes | — | | — | | — | | (41) | |
| Income (loss) from discontinued operations, net of taxes | $ | 2 | | $ | (6) | | $ | — | | $ | (229) | |
During the second quarter of 2022, the Company finalized the settlement of certain liabilities related to its legacy consumer operation in the U.K. (the legacy operation), including an indemnification liability related to its sale of the Egg Banking business in 2011, which led to the substantial liquidation of the legacy operation. As a result, a CTA loss (net of hedges) in AOCI of approximately $400 million pretax ($345 million after-tax) related to the legacy operation was released to earnings in the second quarter of 2022. Out of the total CTA release, a $260 million pretax loss ($221 million after-tax loss) was attributable to the Egg Banking business noted above, reported in Discontinued operations, and therefore the corresponding CTA release was also reported in Discontinued operations during the second quarter of 2022. The remaining CTA release of a $140 million pretax loss ($124 million after-tax loss) related to Legacy Holdings Assets was reported as part of Continuing operations within Legacy Franchises.
While the legacy operation was divested in multiple sales over the years, each transaction did not result in substantial liquidation given that Citi retained certain liabilities noted above, which were gradually settled over time until reaching the point of substantial liquidation during the second quarter of 2022, triggering the release of the CTA loss to earnings.
Cash flows from Discontinued operations were not material for the periods presented.
Significant Disposals
As of September 30, 2022,2023, Citi hashad entered into sale agreements for nine consumer banking businesses that Citi intends to exit, including the sales of thewithin Legacy Franchises. Australia and Philippines businesses, which closed in the second and third quartersquarter of 2022, respectively. Thethe Philippines closed in the third quarter of 2022, Bahrain, Malaysia and Thailand closed in the fourth quarter of 2022, India and Vietnam closed in the first quarter of 2023 and Taiwan closed in the third quarter of 2023. Citi’s entry of sale agreements haveagreement for the Indonesia consumer banking business has resulted in a transferthe reclassification to HFS over timeon the Consolidated Balance Sheet of approximately $26$1 billion in assets within Other assets, including approximately $17 billion$520 million of loans (net of allowance of $292$34 million), and approximately $20$1 billion in liabilities including approximately $20 billion in deposits. As a result, these assets and liabilities held by each business were reclassified to HFS withinOther assets and Other liabilities, respectively, onincluding approximately $900 million in deposits.
Of the Consolidated Balance Sheet. The followingnine sale agreements, the five sale transactionsbelow were identified as significant disposals withindisposals. As of September 30, 2023, there were no remaining assets or liabilities included on Citi’s Consolidated Balance Sheet related to the Legacy Franchises segment. All sale transactions that have yet to close in the table below are subject to regulatory approvals and other closing conditions.significant disposals:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | September 30, 2022 |
| In millions of dollars | | Assets | | Liabilities | |
| Consumer banking business in | Sale agreement date | Expected close | Cash and deposits with banks | Loans(1) | Goodwill(2) | Other assets, advances to/from subsidiaries | Other assets | Total assets | Deposits | Long-term debt | Other liabilities | Total liabilities |
Australia(3) | 8/9/21 | closed 6/1/2022 | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
Philippines(4) | 12/23/21 | closed 8/1/2022 | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
Thailand(5) | 1/14/22 | closed 11/1/2022 | $ | 16 | | $ | 2,374 | | $ | 145 | | $ | 199 | | $ | 81 | | $ | 2,815 | | $ | 865 | | $ | — | | $ | 135 | | $ | 1,000 | |
Taiwan(5) | 1/28/22 | second half 2023 | 96 | | 7,455 | | 192 | | 4,727 | | 190 | | 12,660 | | 9,851 | | — | | 214 | | 10,065 | |
India(5) | 3/30/22 | first half 2023 | 24 | | 3,431 | | 313 | | 2,134 | | 99 | | 6,001 | | 5,472 | | — | | 191 | | 5,663 | |
| | | Income (loss) before taxes(6) | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended
September 30, | Nine Months Ended
September 30, | | Income (loss) before taxes(6) | |
| In millions of dollars | In millions of dollars | 2022 | 2021 | 2022 | 2021 | In millions of dollars | | Three Months Ended
September 30, | Nine Months Ended September 30, | |
| Consumer banking business in | | Consumer banking business in | Sale agreement date | Closing date | 2023 | 2022 | 2023 | 2022 | |
Australia(3)(1) | Australia(3)(1) | $ | — | | $ | 95 | | $ | 193 | | $ | 236 | | Australia(3)(1) | 8/9/2021 | 6/1/2022 | $ | — | | $ | — | | $ | — | | $ | 193 | | |
Philippines(4)(2) | Philippines(4)(2) | 7 | | 47 | | 72 | | 114 | | Philippines(4)(2) | 12/23/2021 | 8/1/2022 | — | | 7 | | — | | 72 | | |
Thailand | Thailand | 28 | | 17 | | 106 | | 108 | | Thailand | 1/14/2022 | 11/1/2022 | — | | 28 | | — | | 106 | | |
| Taiwan | 15 | | 71 | | 111 | | 221 | | |
| India | 37 | | 59 | | 161 | | 157 | | |
India(4) | | India(4) | 3/30/2022 | 3/1/2023 | — | | 37 | | 2 | | 161 | | |
Taiwan(5) | | Taiwan(5) | 1/28/2022 | 8/12/2023 | (1) | | 15 | | 91 | | 111 | | |
(1) Loans, net of allowance as of September 30, 2022: Thailand $67 million, Taiwan $56 million and India $44 million.
(2) For Thailand, includes intangible assets.
(3) On June 1, 2022, Citi completed the sale of its Australia consumer banking business, which was part of Legacy Franchises. The Australia consumer banking business had approximately $9.4 billion in assets, including $9.3 billion of loans (net of allowance of $140 million) and excluding goodwill. The total amount of liabilities was $7.3 billion, including $6.8 billion in deposits. The transaction generated a pretax loss on sale of approximately $780$760 million ($650640 million after-tax), subject to closing adjustments, recorded in Other revenue. The loss on sale primarily reflected the impact of an approximate pretax $620 million currency translation adjustment (CTA)CTA loss (net of hedges) ($470 million after-tax) already reflected in the Accumulated other comprehensive income(AOCI)AOCI component of equity. The sale closed on June 1, 2022, and the CTA-related balance was removed from the AOCI component of equity,, resulting in a neutral CTA impact to Citi’s Common Equity Tier 1CET1 Capital. The income before taxes shown in the above table for Australia reflects Citi’s ownership through June 1, 2022.
(4)(2) On August 1, 2022, Citi completed the sale of its Philippines consumer banking business, which was part of Legacy Franchises. The Philippines consumer banking business had approximately $1.8 billion in assets, including $1.2 billion of loans (net of allowance of $80 million) and excluding goodwill. The total amount of liabilities was $1.3 billion, including $1.2 billion in deposits. The sale resulted in a pretax gain on sale of approximately $616$618 million ($290 million after-tax), subject to closing adjustments, recorded in Other revenue. The income before taxes shown in the above table for the Philippines reflects Citi’s ownership through August 1, 2022.
(3) On November 1, 2022, Citi completed the sale of its Thailand consumer banking business, which was part of Legacy Franchises. The business had approximately $2.7 billion in assets, including $2.4 billion of loans (net of allowance of $67 million) and excluding goodwill. The total amount of liabilities was $1.0 billion, including $0.8 billion in deposits. The sale resulted in a pretax gain on sale of approximately $209 million ($115 million after-tax), recorded in Other revenue. The income before taxes shown in the above table for Thailand reflects Citi’s ownership through November 1, 2022.
(4) On March 1, 2023, Citi completed the sale of its India consumer banking business, which was part of Legacy Franchises. The business had approximately $5.2 billion in assets, including $3.4 billion of loans (net of allowance of $32 million) and excluding goodwill. The total amount of liabilities was $5.2 billion, including $5.1 billion in deposits. The sale resulted in a pretax gain on sale of approximately $1.1 billion ($727 million after-tax), recorded in Other revenue. The income before taxes shown in the above table for India reflects Citi’s ownership through March 1, 2023.
(5) These sales are expectedOn August 12, 2023, Citi completed the sale of its Taiwan consumer banking business, which was part of Legacy Franchises. The business had approximately $11.6 billion in assets, including $7.2 billion of loans (net of allowance of $92 million) and excluding goodwill. The total amount of liabilities was $9.2 billion, including $9.0 billion in deposits. The sale resulted in a pretax gain on sale of approximately $403 million ($284 million after-tax), subject to resultclosing adjustments, recorded in an after-tax gain upon closing.Other revenue. The income before taxes shown in the above table for Taiwan reflects Citi’s ownership through August 12, 2023.
(6) Income before taxes for the period in which the individually significant component was classified as HFS for all prior periods presented. For Australia, excludes the pretax loss on sale. For the Philippines, Thailand, India and Taiwan, excludes the pretax gain on sale.
Citi did not have any other significant disposals as of September 30, 2022.2023. As of November 4, 2022,3, 2023, Citi had not entered into sale agreements for its two other consumer bankingthe remaining Legacy Franchises businesses to be sold, in Asiaspecifically the Poland consumer banking business and EMEA.
For a description of the Company’s significant disposal transactions in prior periods and financial impact, see Note 2 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
Other Business Exits
Wind-Down of Korea Consumer Banking Business
On October 25, 2021, Citi disclosed its decision to wind down and close its Korea consumer banking business, which is reported in the Legacy Franchises operating segment. In connection with the announcement, Citibank Korea Inc. (CKI) commenced a voluntary early termination program (Korea VERP). Due to the voluntary nature of this termination program, no liabilities for termination benefits are recorded until CKI makes formal offers to employees that are then irrevocably accepted by those employees. Related charges are recorded as Compensation and benefits.
During the first quarter of 2022, Citi recorded an additional pretax charge of $31 million, composed of gross charges connected to the Korea VERP.
The following table summarizes the reserve charges related to the Korea VERP and other initiatives reported in the Legacy Franchises operating segment and Corporate/Other:
| | | | | |
| In millions of dollars | Employee termination costs |
| Total Citigroup (pretax) | |
| Original charges in fourth quarter 2021 | $ | 1,052 | |
| Utilization | (1) | |
| Foreign exchange | 3 | |
| Balance at December 31, 2021 | $ | 1,054 | |
| Additional charges in first quarter 2022 | $ | 31 | |
| Utilization | (347) | |
| Foreign exchange | (24) | |
| Balance at March 31, 2022 | $ | 714 | |
| Additional charges (releases) | $ | (3) | |
| Utilization | (670) | |
| Foreign exchange | (41) | |
| Balance at June 30, 2022 | $ | — | |
Additional charges (releases) | $ | — | |
Utilization | — | |
Foreign exchange | — | |
Balance at September 30, 2022 | $ | — | |
Note: There were no additional charges after June 30, 2022.
The total estimated cash charges for the wind-down arewere $1.1 billion through 2022, most of which were recognized in 2021. Citi does not expect to record any additional charges in connection with the Korea VERP.
See Note 8 to the Consolidated Financial Statements in Citi’s 2022 Form 10-K for details on the pension impact of the Korea wind-down.
Wind-Down of Russia Consumer and Institutional Banking Businesses
On August 25, 2022, Citi disclosedannounced its decision to wind down its consumer banking and local commercial banking operations in Russia. As part of the wind-down, Citi is also actively pursuing sales of certain Russian consumer banking portfolios.
In connection with the wind-down plan, Citi expects to incur approximately $170 million in costs, primarily over the next 18 months, largely driven by restructuring, vendor termination fees and other related charges. These costs do not include the impact of any potential portfolio sales, should such sales be executed. During the third quarter of 2022, Citi recorded a pretax charge of approximately $10 million, composed of severance costs reported in the Legacy Franchises operating segment.
On October 14, 2022, Citi disclosed that it will be endingwould end nearly all of the institutional banking services it offersoffered in Russia by the end of the first quarter of 2023. Going forward, Citi’s only operations in Russia will beare those necessary to fulfill its remaining legal and regulatory obligations.
Portfolio Sales
•On October 28,December 12, 2022, Citi entered into an agreement to sellcompleted the sale of a portfolio of ruble-denominated personal installment loans, totaling approximately $345$240 million in outstanding loan balances, as of the third quarter of 2022, to Uralsib, a Russian commercial bank. Citi expects to incurbank, resulting in a pretax net loss of approximately $35 million as a result$12 million. The net loss on sale of the loan portfolio included a $32 million adjustment to record the loans at lower of cost or fair value recognized in Other revenue. In addition, the sale which is expected to closeof the loans resulted in a release in the fourthallowance for credit losses on loans of approximately $20 million recognized in the Provision for credit losses on loans.
•During the second quarter of 2022. In connection with2023, Citi recorded an incremental gain of $5 million related to post-closing contingency payments for the portfoliopreviously disclosed personal installment loan sale Citi also entered into a referral agreement to transfer to Uralsibin Other revenue. The previously disclosed sale of a portfolio of ruble-denominated credit cardpersonal installment loans subject to customer consents. The outstanding card loans balance wasresulted in a pretax net loss on sale of approximately $320 million as of$7 million.
•During the third quarter of 2022. Citi will refer2023, as part of the previously disclosed cards referral agreement with a Russian bank, approximately $26 million of credit card customers, who at the customers’ sole discretion will be eligible to refinance their outstanding card loan balances with Uralsib.receivables was settled upon referral and refinanced.
Wind-Down Charges
The following tables provide details on Citi’s Russia wind-down charges:
| | | | | | | | | | | | | | |
| Three Months Ended
September 30, 2023 |
| In millions of dollars | ICG | Legacy Franchises | Corporate/Other | Total |
Severance(1) | $ | (2) | | $ | (3) | | $ | 1 | | $ | (4) | |
Vendor termination and other costs(2) | — | | 1 | | — | | 1 | |
| Total | $ | (2) | | $ | (2) | | $ | 1 | | $ | (3) | |
| | | | | | | | | | | | | | | |
| Program-to-date
September 30, 2023 | |
| In millions of dollars | ICG | Legacy Franchises | Corporate/Other | Total | |
Severance(1) | $ | 8 | | $ | 26 | | $ | 3 | | $ | 37 | | |
Vendor termination and other costs(2) | — | | 18 | | — | | 18 | | |
| Total | $ | 8 | | $ | 44 | | $ | 3 | | $ | 55 | | |
| | | | | | | | | | | | | | |
| Estimated additional charges
as of September 30, 2023 |
| In millions of dollars | ICG | Legacy Franchises | Corporate/Other | Total |
Severance(1) | $ | 10 | | $ | 17 | | $ | 10 | | $ | 37 | |
Vendor termination and other costs(2) | — | | 48 | | — | | 48 | |
| Total | $ | 10 | | $ | 65 | | $ | 10 | | $ | 85 | |
(1) Recorded in Compensation and benefits.
(2) Recorded in Other operating expenses.
3. OPERATING SEGMENTS
Effective January 1, 2022, Citi changed its management structure resulting in changes in itsThe operating segments and reporting units to reflect how the CEO, who is the chief operating decision maker, intends to managemanages the Company, allocateincluding allocating resources and measuremeasuring performance. Citi reorganized its reporting into
Citigroup’s activities are conducted through three operating segments:Institutional Clients Group (ICG),Personal Banking and Wealth Management (PBWM)and and Legacy Franchises,with Corporate/Otherincluding activities not assigned to a specific operating segment, as well as discontinued operations. The prior-period balances reflect reclassifications to conform the presentation in those periods to the current operating segment structure. Citi’s consolidated results were not impacted by the changes discussed above and remain unchanged for all periods presented.
The operating segments are determined based on how management allocates resources and measures financial performance to make business decisions, and are reflective of the types of customers served and the products and services provided.
ICG consists of Services, Markets and Banking, providing corporate, institutional and public sector clients around the world with a full range of wholesale banking products and services.
PBWM consists of U.S. Personal Banking and Global Wealth Management (Global Wealth), providing traditional banking services and credit cards to retail and small business customers primarily in the U.S., and financial services to the entire continuum of wealth clients—clients from affluent to ultra-high-net-worth—ultra-high-net-worth through banking, lending, mortgages, investment, custody and trust product offerings in 20 countries, including the U.S., Mexico and the four wealth management centers: Singapore, Hong Kong, the UAE and London.
Legacy Franchises consists of Asia Consumer and Mexico Consumer/SBMM businesses that Citi intends to exit, and its remaining Legacy Holdings Assets.
Corporate/Other includes activities not assigned to the operating segments, including certain unallocated costs of global functions, other corporate expenses and netcorporate treasury results, offsets to certain line-item reclassifications and eliminations and unallocated taxes, as well as discontinued operations.
Revenues and expenses directly associated with each respective business segment or component are included in determining respective operating results. Other revenues and expenses that are not directly attributable to a particular business segment or component are generally allocated from Corporate/Other based on respective net revenues, non-interest expenses or other relevant measures.
As a result of revenues and expenses from transactions with other operating segments or components being treated as transactions with external parties for purposes of segment disclosures, the Company includes intersegment eliminations within Corporate/Other to reconcile the business segment results to Citi’s consolidated results.
The accounting policies of these operating segments are the same as those disclosed in Note 1 to the Consolidated Financial Statements in Citi’s 2022 Form 10-K.
On September 13, 2023, Citi announced changes to its organizational structure, with the resulting operating segment impacts being implemented in the fourth quarter of 2023. The Company continues to execute requisite system and process changes that will enable the new segments to be operational in the fourth quarter of 2023. Citi expects to update its operating segment disclosures, including historical financial results, in the fourth quarter of 2023. These changes will not impact the previously reported consolidated financial results of the Company.
The following tables present certain information regarding the Company’s continuing operations by operating segment and Corporate/Other:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, |
| In millions of dollars, except identifiable assets, average loans and average deposits in billions | ICG | PBWM | Legacy Franchises | Corporate/Other | Total Citi |
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
| Net interest income | $ | 4,570 | | $ | 3,738 | | $ | 5,836 | | $ | 5,174 | | $ | 1,385 | | $ | 1,532 | | $ | 772 | | $ | 247 | | $ | 12,563 | | $ | 10,691 | |
| Non-interest revenue | 4,898 | | 6,253 | | 351 | | 678 | | 1,169 | | 4 | | (473) | | (179) | | 5,945 | | 6,756 | |
| Total revenues, net of interest expense | $ | 9,468 | | $ | 9,991 | | $ | 6,187 | | $ | 5,852 | | $ | 2,554 | | $ | 1,536 | | $ | 299 | | $ | 68 | | $ | 18,508 | | $ | 17,447 | |
| Operating expense | 6,541 | | 5,963 | | 4,077 | | 3,624 | | 1,845 | | 1,748 | | 286 | | 442 | | 12,749 | | 11,777 | |
| Provisions for credit losses | 86 | | 24 | | 1,109 | | (201) | | 167 | | (14) | | 3 | | (1) | | 1,365 | | (192) | |
| Income (loss) from continuing operations before taxes | $ | 2,841 | | $ | 4,004 | | $ | 1,001 | | $ | 2,429 | | $ | 542 | | $ | (198) | | $ | 10 | | $ | (373) | | $ | 4,394 | | $ | 5,862 | |
| Provision (benefits) for income taxes | 655 | | 889 | | 209 | | 533 | | 226 | | 3 | | (211) | | (232) | | 879 | | 1,193 | |
| Income (loss) from continuing operations | $ | 2,186 | | $ | 3,115 | | $ | 792 | | $ | 1,896 | | $ | 316 | | $ | (201) | | $ | 221 | | $ | (141) | | $ | 3,515 | | $ | 4,669 | |
| Identifiable assets (September 30, 2022 and December 31, 2021) | $ | 1,706 | | $ | 1,613 | | $ | 479 | | $ | 464 | | $ | 100 | | $ | 125 | | $ | 96 | | $ | 89 | | $ | 2,381 | | $ | 2,291 | |
| Average loans | 291 | | 289 | | 325 | | 309 | | 39 | | 71 | | — | | — | | 655 | | 669 | |
| Average deposits | 817 | | 831 | | 428 | | 424 | | 50 | | 80 | | 21 | | 8 | | 1,316 | | 1,343 | |
| | | | | | | | | | |
| Nine Months Ended September 30, |
| In millions of dollars, except average loans and average deposits in billions | ICG | PBWM | Legacy Franchises | Corporate/Other | Total Citi |
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
| Net interest income | $ | 12,874 | | $ | 11,231 | | $ | 16,790 | | $ | 15,324 | | $ | 4,367 | | $ | 4,716 | | $ | 1,367 | | $ | 404 | | $ | 35,398 | | $ | 31,675 | |
| Non-interest revenue | 19,173 | | 19,697 | | 1,331 | | 2,218 | | 2,053 | | 1,342 | | (623) | | (65) | | 21,934 | | 23,192 | |
| Total revenues, net of interest expense | $ | 32,047 | | $ | 30,928 | | $ | 18,121 | | $ | 17,542 | | $ | 6,420 | | $ | 6,058 | | $ | 744 | | $ | 339 | | $ | 57,332 | | $ | 54,867 | |
| Operating expense | 19,698 | | 17,724 | | 11,951 | | 10,593 | | 5,952 | | 5,288 | | 706 | | 1,056 | | 38,307 | | 34,661 | |
| Provisions for credit losses | 855 | | (2,209) | | 2,088 | | (928) | | 448 | | (174) | | 3 | | (2) | | 3,394 | | (3,313) | |
| Income (loss) from continuing operations before taxes | $ | 11,494 | | $ | 15,413 | | $ | 4,082 | | $ | 7,877 | | $ | 20 | | $ | 944 | | $ | 35 | | $ | (715) | | $ | 15,631 | | $ | 23,519 | |
| Provision (benefits) for income taxes | 2,672 | | 3,435 | | 877 | | 1,756 | | 104 | | 333 | | (651) | | (844) | | 3,002 | | 4,680 | |
| Income (loss) from continuing operations | $ | 8,822 | | $ | 11,978 | | $ | 3,205 | | $ | 6,121 | | $ | (84) | | $ | 611 | | $ | 686 | | $ | 129 | | $ | 12,629 | | $ | 18,839 | |
| Average loans | $ | 292 | | $ | 286 | | $ | 318 | | $ | 305 | | $ | 44 | | $ | 77 | | $ | — | | $ | — | | $ | 654 | | $ | 668 | |
| Average deposits | 824 | | 819 | | 437 | | 410 | | 52 | | 85 | | 11 | | 9 | | 1,324 | | 1,323 | |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, |
| In millions of dollars, except identifiable assets, average loans and average deposits in billions | ICG | PBWM | Legacy Franchises | Corporate/Other | Total Citi |
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
| Net interest income | $ | 5,494 | | $ | 4,570 | | $ | 6,356 | | $ | 5,836 | | $ | 1,279 | | $ | 1,385 | | $ | 699 | | $ | 772 | | $ | 13,828 | | $ | 12,563 | |
| Non-interest revenue | 5,150 | | 4,898 | | 422 | | 351 | | 938 | | 1,169 | | (199) | | (473) | | 6,311 | | 5,945 | |
| Total revenues, net of interest expense | $ | 10,644 | | $ | 9,468 | | $ | 6,778 | | $ | 6,187 | | $ | 2,217 | | $ | 2,554 | | $ | 500 | | $ | 299 | | $ | 20,139 | | $ | 18,508 | |
| Operating expense | 7,179 | | 6,541 | | 4,301 | | 4,077 | | 1,794 | | 1,845 | | 237 | | 286 | | 13,511 | | 12,749 | |
| Provisions (releases) for credit losses | 196 | | 86 | | 1,457 | | 1,109 | | 188 | | 167 | | (1) | | 3 | | 1,840 | | 1,365 | |
| Income (loss) from continuing operations before taxes | $ | 3,269 | | $ | 2,841 | | $ | 1,020 | | $ | 1,001 | | $ | 235 | | $ | 542 | | $ | 264 | | $ | 10 | | $ | 4,788 | | $ | 4,394 | |
| Provision (benefits) for income taxes | 804 | | 655 | | 217 | | 209 | | 108 | | 226 | | 74 | | (211) | | 1,203 | | 879 | |
| Income (loss) from continuing operations | $ | 2,465 | | $ | 2,186 | | $ | 803 | | $ | 792 | | $ | 127 | | $ | 316 | | $ | 190 | | $ | 221 | | $ | 3,585 | | $ | 3,515 | |
| Identifiable assets (September 30, 2023 and December 31, 2022) | $ | 1,722 | | $ | 1,730 | | $ | 471 | | $ | 494 | | $ | 80 | | $ | 97 | | $ | 95 | | $ | 96 | | $ | 2,368 | | $ | 2,417 | |
| Average loans | 278 | | 291 | | 347 | | 325 | | 37 | | 39 | | — | | — | | 662 | | 655 | |
| Average deposits | 821 | | 817 | | 421 | | 428 | | 52 | | 50 | | 21 | | 21 | | 1,315 | | 1,316 | |
| Nine Months Ended September 30, |
| In millions of dollars, except average loans and average deposits in billions | ICG | PBWM | Legacy Franchises | Corporate/Other | Total Citi |
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
| Net interest income | $ | 16,145 | | $ | 12,874 | | $ | 18,253 | | $ | 16,790 | | $ | 3,914 | | $ | 4,367 | | $ | 2,764 | | $ | 1,367 | | $ | 41,076 | | $ | 35,398 | |
| Non-interest revenue | 16,173 | | 19,173 | | 1,368 | | 1,331 | | 3,078 | | 2,053 | | (673) | | (623) | | 19,946 | | 21,934 | |
| Total revenues, net of interest expense | $ | 32,318 | | $ | 32,047 | | $ | 19,621 | | $ | 18,121 | | $ | 6,992 | | $ | 6,420 | | $ | 2,091 | | $ | 744 | | $ | 61,022 | | $ | 57,332 | |
| Operating expense | 21,438 | | 19,698 | | 12,759 | | 11,951 | | 5,324 | | 5,952 | | 849 | | 706 | | 40,370 | | 38,307 | |
| Provisions for credit losses | 182 | | 855 | | 4,627 | | 2,088 | | 833 | | 448 | | (3) | | 3 | | 5,639 | | 3,394 | |
| Income (loss) from continuing operations before taxes | $ | 10,698 | | $ | 11,494 | | $ | 2,235 | | $ | 4,082 | | $ | 835 | | $ | 20 | | $ | 1,245 | | $ | 35 | | $ | 15,013 | | $ | 15,631 | |
| Provision (benefits) for income taxes | 2,716 | | 2,672 | | 449 | | 877 | | 224 | | 104 | | 435 | | (651) | | 3,824 | | 3,002 | |
| Income (loss) from continuing operations | $ | 7,982 | | $ | 8,822 | | $ | 1,786 | | $ | 3,205 | | $ | 611 | | $ | (84) | | $ | 810 | | $ | 686 | | $ | 11,189 | | $ | 12,629 | |
| Average loans | $ | 280 | | $ | 292 | | $ | 340 | | $ | 318 | | $ | 37 | | $ | 44 | | $ | — | | $ | — | | $ | 657 | | $ | 654 | |
| Average deposits | 837 | | 824 | | 429 | | 437 | | 51 | | 52 | | 22 | | 11 | | 1,339 | | 1,324 | |
4. INTEREST REVENUE AND EXPENSE
Interest revenue and Interest expense consisted of the following:
| | | Three Months Ended September 30, | Nine Months Ended September 30, | | | Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | In millions of dollars | 2022 | 2021 | 2022 | 2021 | | In millions of dollars | 2023 | 2022 | 2023 | 2022 |
| Interest revenue | Interest revenue | | | | | Interest revenue | | | |
| Consumer loans | Consumer loans | $ | 7,380 | | $ | 6,567 | | $ | 20,243 | | $ | 19,790 | | | Consumer loans | $ | 9,609 | | $ | 7,380 | | $ | 27,195 | | $ | 20,243 | |
| Corporate loans | Corporate loans | 3,403 | | 2,307 | | 8,750 | | 6,726 | | | Corporate loans | 5,432 | | 3,403 | | 15,186 | | 8,750 | |
| Loan interest, including fees | Loan interest, including fees | $ | 10,783 | | $ | 8,874 | | $ | 28,993 | | $ | 26,516 | | | Loan interest, including fees | $ | 15,041 | | $ | 10,783 | | $ | 42,381 | | $ | 28,993 | |
| Deposits with banks | Deposits with banks | 1,218 | | 147 | | 2,172 | | 418 | | | Deposits with banks | 2,645 | | 1,218 | | 8,725 | | 2,172 | |
| Securities borrowed and purchased under agreements to resell | Securities borrowed and purchased under agreements to resell | 2,176 | | 264 | | 3,375 | | 763 | | | Securities borrowed and purchased under agreements to resell | 7,363 | | 2,176 | | 18,791 | | 3,375 | |
| Investments, including dividends | Investments, including dividends | 2,993 | | 1,885 | | 7,413 | | 5,455 | | | Investments, including dividends | 4,719 | | 2,993 | | 13,314 | | 7,413 | |
Trading account assets(1) | Trading account assets(1) | 1,989 | | 1,284 | | 4,794 | | 4,091 | | | Trading account assets(1) | 3,893 | | 1,989 | | 10,391 | | 4,794 | |
Other interest-earning assets(2) | Other interest-earning assets(2) | 760 | | 196 | | 1,953 | | 404 | | | Other interest-earning assets(2) | 1,176 | | 760 | | 3,277 | | 1,953 | |
| Total interest revenue | Total interest revenue | $ | 19,919 | | $ | 12,650 | | $ | 48,700 | | $ | 37,647 | | | Total interest revenue | $ | 34,837 | | $ | 19,919 | | $ | 96,879 | | $ | 48,700 | |
| Interest expense | Interest expense | | | | | Interest expense | | | |
| Deposits | Deposits | $ | 3,270 | | $ | 730 | | $ | 5,561 | | $ | 2,118 | | | Deposits | $ | 9,630 | | $ | 3,270 | | $ | 26,065 | | $ | 5,561 | |
| Securities loaned and sold under agreements to repurchase | Securities loaned and sold under agreements to repurchase | 1,251 | | 287 | | 2,188 | | 800 | | | Securities loaned and sold under agreements to repurchase | 6,090 | | 1,251 | | 14,609 | | 2,188 | |
Trading account liabilities(1) | Trading account liabilities(1) | 472 | | 106 | | 756 | | 370 | | | Trading account liabilities(1) | 892 | | 472 | | 2,549 | | 756 | |
Short-term borrowings and other interest-bearing liabilities(3) | Short-term borrowings and other interest-bearing liabilities(3) | 745 | | 8 | | 1,068 | | 70 | | | Short-term borrowings and other interest-bearing liabilities(3) | 1,956 | | 745 | | 5,382 | | 1,068 | |
| Long-term debt | Long-term debt | 1,618 | | 828 | | 3,729 | | 2,614 | | | Long-term debt | 2,441 | | 1,618 | | 7,198 | | 3,729 | |
| Total interest expense | Total interest expense | $ | 7,356 | | $ | 1,959 | | $ | 13,302 | | $ | 5,972 | | | Total interest expense | $ | 21,009 | | $ | 7,356 | | $ | 55,803 | | $ | 13,302 | |
| Net interest income | Net interest income | $ | 12,563 | | $ | 10,691 | | $ | 35,398 | | $ | 31,675 | | | Net interest income | $ | 13,828 | | $ | 12,563 | | $ | 41,076 | | $ | 35,398 | |
| Provision (benefit) for credit losses on loans | 1,328 | | (188) | | 2,972 | | (2,793) | | | |
| Provision for credit losses on loans | | Provision for credit losses on loans | 1,816 | | 1,328 | | 5,314 | | 2,972 | |
| Net interest income after provision for credit losses on loans | Net interest income after provision for credit losses on loans | $ | 11,235 | | $ | 10,879 | | $ | 32,426 | | $ | 34,468 | | | Net interest income after provision for credit losses on loans | $ | 12,012 | | $ | 11,235 | | $ | 35,762 | | $ | 32,426 | |
(1)Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively.
(2)Includes assets from businesses held-for-sale (see Note 2) and Brokerage receivables.
(3)Includes liabilities from businesses held-for-sale (see Note 2) and Brokerage payables.
5. COMMISSIONS AND FEES; ADMINISTRATION AND OTHER FIDUCIARY FEES
For additional information on Citi’s commissions and fees, and administration and other fiduciary fees, see Note 5 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
The following tables present Commissions and fees revenue:
| | | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 |
| In millions of dollars | In millions of dollars | ICG | PBWM | Legacy Franchises | | Total | ICG | PBWM | Legacy Franchises | | Total | In millions of dollars | ICG | PBWM | Legacy Franchises | | Total | ICG | PBWM | Legacy Franchises | | Total |
| Investment banking | Investment banking | $ | 725 | | $ | — | | $ | — | | | $ | 725 | | $ | 2,477 | | $ | — | | $ | — | | | $ | 2,477 | | Investment banking | $ | 694 | | $ | — | | $ | — | | | $ | 694 | | $ | 2,018 | | $ | — | | $ | — | | | $ | 2,018 | |
| Brokerage commissions | Brokerage commissions | 356 | | 167 | | 48 | | | 571 | | 1,209 | | 621 | | 169 | | | 1,999 | | Brokerage commissions | 368 | | 176 | | 21 | | | 565 | | 1,142 | | 535 | | 99 | | | 1,776 | |
| Credit and bank card income | Credit and bank card income | | | | | | | | Credit and bank card income | | | | | | | |
| Interchange fees | Interchange fees | 330 | | 2,420 | | 199 | | | 2,949 | | 891 | | 6,954 | | 647 | | | 8,492 | | Interchange fees | 356 | | 2,507 | | 152 | | | 3,015 | | 1,050 | | 7,409 | | 485 | | | 8,944 | |
| Card-related loan fees | Card-related loan fees | 12 | | 64 | | 66 | | | 142 | | 32 | | 201 | | 226 | | | 459 | | Card-related loan fees | 16 | | 36 | | 71 | | | 123 | | 46 | | 116 | | 198 | | | 360 | |
Card rewards and partner payments(1) | Card rewards and partner payments(1) | (175) | | (2,852) | | (134) | | | (3,161) | | (458) | | (8,223) | | (466) | | | (9,147) | | Card rewards and partner payments(1) | (198) | | (2,858) | | (103) | | | (3,159) | | (574) | | (8,425) | | (285) | | | (9,284) | |
Deposit-related fees(2) | Deposit-related fees(2) | 262 | | 25 | | 13 | | | 300 | | 807 | | 128 | | 49 | | | 984 | | Deposit-related fees(2) | 284 | | 32 | | 9 | | | 325 | | 808 | | 90 | | 26 | | | 924 | |
| Transactional service fees | Transactional service fees | 270 | | 5 | | 20 | | | 295 | | 791 | | 14 | | 72 | | | 877 | | Transactional service fees | 298 | | 7 | | 22 | | | 327 | | 889 | | 17 | | 72 | | | 978 | |
Corporate finance(3) | Corporate finance(3) | 87 | | — | | — | | | 87 | | 339 | | 3 | | — | | | 342 | | Corporate finance(3) | 89 | | — | | — | | | 89 | | 274 | | 3 | | — | | | 277 | |
| Insurance distribution revenue | Insurance distribution revenue | — | | 57 | | 33 | | | 90 | | — | | 165 | | 102 | | | 267 | | Insurance distribution revenue | — | | 64 | | 13 | | | 77 | | — | | 183 | | 74 | | | 257 | |
| Insurance premiums | Insurance premiums | — | | 1 | | 22 | | | 23 | | — | | 3 | | 69 | | | 72 | | Insurance premiums | — | | 1 | | 25 | | | 26 | | — | | 2 | | 70 | | | 72 | |
| Loan servicing | Loan servicing | 13 | | 14 | | 4 | | | 31 | | 32 | | 36 | | 11 | | | 79 | | Loan servicing | 7 | | 11 | | 3 | | | 21 | | 24 | | 37 | | 10 | | | 71 | |
| Other | Other | 6 | | 44 | | 37 | | | 87 | | 9 | | 141 | | 107 | | | 258 | | Other | 3 | | 42 | | 49 | | | 92 | | 9 | | 150 | | 139 | | | 300 | |
Total commissions and fees(4) | Total commissions and fees(4) | $ | 1,886 | | $ | (55) | | $ | 308 | | | $ | 2,139 | | $ | 6,129 | | $ | 43 | | $ | 986 | | | $ | 7,159 | | Total commissions and fees(4) | $ | 1,917 | | $ | 18 | | $ | 262 | | | $ | 2,195 | | $ | 5,686 | | $ | 117 | | $ | 888 | | | $ | 6,693 | |
| | | Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 |
| In millions of dollars | In millions of dollars | ICG | PBWM | Legacy Franchises | | Total | ICG | PBWM | Legacy Franchises | | Total | In millions of dollars | ICG | PBWM | Legacy Franchises | | Total | ICG | PBWM | Legacy Franchises | | Total |
| Investment banking | Investment banking | $ | 1,493 | | $ | — | | $ | — | | | $ | 1,493 | | $ | 4,503 | | $ | — | | $ | — | | | $ | 4,503 | | Investment banking | $ | 725 | | $ | — | | $ | — | | | $ | 725 | | $ | 2,477 | | $ | — | | $ | — | | | $ | 2,477 | |
| Brokerage commissions | Brokerage commissions | 412 | | 248 | | 113 | | | 773 | | 1,380 | | 814 | | 342 | | | 2,536 | | Brokerage commissions | 356 | | 167 | | 48 | | | 571 | | 1,209 | | 621 | | 169 | | | 1,999 | |
| Credit and bank card income | Credit and bank card income | | | | | | | | Credit and bank card income | | | | | | | |
| Interchange fees | Interchange fees | 225 | | 2,107 | | 210 | | | 2,542 | | 580 | | 5,861 | | 635 | | | 7,076 | | Interchange fees | 330 | | 2,420 | | 199 | | | 2,949 | | 891 | | 6,954 | | 647 | | | 8,492 | |
| Card-related loan fees | Card-related loan fees | 7 | | 72 | | 92 | | | 171 | | 18 | | 223 | | 289 | | | 530 | | Card-related loan fees | 12 | | 64 | | 66 | | | 142 | | 32 | | 201 | | 226 | | | 459 | |
Card rewards and partner payments(1) | Card rewards and partner payments(1) | (119) | | (2,415) | | (126) | | | (2,660) | | (298) | | (6,673) | | (375) | | | (7,346) | | Card rewards and partner payments(1) | (175) | | (2,852) | | (134) | | | (3,161) | | (458) | | (8,223) | | (466) | | | (9,147) | |
Deposit-related fees(2) | Deposit-related fees(2) | 267 | | 49 | | 23 | | | 339 | | 766 | | 145 | | 82 | | | 993 | | Deposit-related fees(2) | 262 | | 25 | | 13 | | | 300 | | 807 | | 128 | | 49 | | | 984 | |
| Transactional service fees | Transactional service fees | 249 | | 6 | | 26 | | | 281 | | 723 | | 18 | | 82 | | | 823 | | Transactional service fees | 270 | | 5 | | 20 | | | 295 | | 791 | | 14 | | 72 | | | 877 | |
Corporate finance(3) | Corporate finance(3) | 213 | | — | | — | | | 214 | | 548 | | 4 | | — | | | 552 | | Corporate finance(3) | 87 | | — | | — | | | 87 | | 339 | | 3 | | — | | | 342 | |
| Insurance distribution revenue | Insurance distribution revenue | — | | 77 | | 40 | | | 117 | | — | | 237 | | 128 | | | 365 | | Insurance distribution revenue | — | | 57 | | 33 | | | 90 | | — | | 165 | | 102 | | | 267 | |
| Insurance premiums | Insurance premiums | — | | 1 | | 24 | | | 25 | | — | | 9 | | 66 | | | 75 | | Insurance premiums | — | | 1 | | 22 | | | 23 | | — | | 3 | | 69 | | | 72 | |
| Loan servicing | Loan servicing | 9 | | 11 | | 4 | | | 24 | | 31 | | 27 | | 13 | | | 71 | | Loan servicing | 13 | | 14 | | 4 | | | 31 | | 32 | | 36 | | 11 | | | 79 | |
| Other | Other | (2) | | 46 | | 36 | | | 80 | | 15 | | 145 | | 105 | | | 265 | | Other | 6 | | 44 | | 37 | | | 87 | | 9 | | 141 | | 108 | | | 258 | |
Total commissions and fees(4) | Total commissions and fees(4) | $ | 2,755 | | $ | 202 | | $ | 442 | | | $ | 3,399 | | $ | 8,266 | | $ | 810 | | $ | 1,367 | | | $ | 10,443 | | Total commissions and fees(4) | $ | 1,886 | | $ | (55) | | $ | 308 | | | $ | 2,139 | | $ | 6,129 | | $ | 43 | | $ | 987 | | | $ | 7,159 | |
(1)Citi’s consumer credit card programs have certain partner-sharingpartner sharing agreements that vary by partner. These agreements are subject to contractually based performance thresholds that, if met, would require Citi to make ongoing payments to the partner. The threshold is based on the profitability of a program and is generally calculated based on predefined program revenues less predefined program expenses. In most of Citi’s partner-sharingpartner sharing agreements, program expenses include net credit losses and, to the extent that a decreasean increase in net credit losses reduces Citi’s liability for the partners’ share for a given program year, would generally result in higherlower payments to partners in total for that year and vice versa. Further, in some instances, other partner payments are based on program sales and new account acquisitions.
(2)Includes overdraft fees of $0 and $28 million for the three months ended September 30, 2022 and 2021, respectively, and $59 million and $75 million for the nine months ended September 30, 2022 and 2021, respectively. Overdraft fees are accounted for under ASC 310. Citi eliminated overdraft fees, returned-itemreturned item fees and overdraft protection fees beginning in June 2022. Includes overdraft fees (prior to the elimination of overdraft fees in June 2022) of $0 and $0 million for the three months ended September 30, 2023 and 2022, respectively, and $0 and $59 million for the nine months ended September 30, 2023 and 2022, respectively.
(3)Consists primarily of fees earned from structuring and underwriting loan syndications or related financing activity. This activity is accounted for under ASC 310.
(4)Commissions and fees include $(2,872)$(2,897) million and $(2,208)$(2,872) million not accounted for under ASC 606, Revenue from Contracts with Customers, for the three months ended September 30, 20222023 and 2021,2022, respectively, and $(8,115)$(8,497) million and $(6,031)$(8,115) million for the nine months ended September 30, 20222023 and 2021,2022, respectively. Amounts reported in Commissions and fees accounted for under other guidance primarily include card-related loan fees, card reward programs and certain partner payments, corporate finance fees, insurance premiums and loan servicing fees.
The following tables present Administration and other fiduciary fees revenue:
| | | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2023 |
| In millions of dollars | In millions of dollars | ICG | PBWM | Legacy Franchises | | Total | ICG | PBWM | Legacy Franchises | | Total | In millions of dollars | ICG | PBWM | Legacy Franchises | Total | ICG | PBWM | Legacy Franchises | Total |
| Custody fees | Custody fees | $ | 422 | | $ | 21 | | $ | 2 | | | $ | 445 | | $ | 1,375 | | $ | 67 | | $ | 7 | | | $ | 1,449 | | Custody fees | $ | 447 | | $ | 20 | | $ | 2 | | $ | 469 | | $ | 1,349 | | $ | 62 | | $ | 13 | | $ | 1,424 | |
| Fiduciary fees | Fiduciary fees | 78 | | 179 | | 77 | | | 334 | | 210 | | 580 | | 236 | | | 1,026 | | Fiduciary fees | 73 | | 199 | | 98 | | 370 | | 217 | | 537 | | 270 | | 1,024 | |
| Guarantee fees | Guarantee fees | 124 | | 10 | | 2 | | | 136 | | 391 | | 34 | | 4 | | | 429 | | Guarantee fees | 124 | | 6 | | 1 | | 132 | | 382 | | 21 | | 4 | | 408 | |
Total administration and other fiduciary fees(1) | Total administration and other fiduciary fees(1) | $ | 624 | | $ | 210 | | $ | 81 | | | $ | 915 | | $ | 1,976 | | $ | 681 | | $ | 247 | | | $ | 2,904 | | Total administration and other fiduciary fees(1) | $ | 644 | | $ | 225 | | $ | 101 | | $ | 971 | | $ | 1,948 | | $ | 620 | | $ | 287 | | $ | 2,856 | |
| | | Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 |
| In millions of dollars | In millions of dollars | ICG | PBWM | Legacy Franchises | | Total | ICG | PBWM | Legacy Franchises | | Total | In millions of dollars | ICG | PBWM | Legacy Franchises | Total | ICG | PBWM | Legacy Franchises | Total |
| Custody fees | Custody fees | $ | 451 | | $ | 23 | | $ | 5 | | | $ | 479 | | $ | 1,359 | | $ | 68 | | $ | 12 | | | $ | 1,439 | | Custody fees | $ | 422 | | $ | 21 | | $ | 2 | | $ | 445 | | $ | 1,375 | | $ | 67 | | $ | 7 | | $ | 1,449 | |
| Fiduciary fees | Fiduciary fees | 64 | | 206 | | 112 | | | 382 | | 186 | | 598 | | 329 | | | 1,113 | | Fiduciary fees | 78 | | 179 | | 77 | | 334 | | 210 | | 580 | | 236 | | 1,026 | |
| Guarantee fees | Guarantee fees | 132 | | 12 | | 2 | | | 146 | | 398 | | 34 | | 6 | | | 438 | | Guarantee fees | 124 | | 10 | | 2 | | 136 | | 391 | | 34 | | 4 | | 429 | |
Total administration and other fiduciary fees(1) | Total administration and other fiduciary fees(1) | $ | 647 | | $ | 241 | | $ | 119 | | | $ | 1,007 | | $ | 1,943 | | $ | 700 | | $ | 347 | | | $ | 2,990 | | Total administration and other fiduciary fees(1) | $ | 624 | | $ | 210 | | $ | 81 | | $ | 915 | | $ | 1,976 | | $ | 681 | | $ | 247 | | $ | 2,904 | |
(1) Administration and other fiduciary fees include $136$132 million and $146$136 million for the three months ended September 30, 20222023 and 2021,2022, respectively, and $429$408 million and $438$429 million for the nine months ended September 30, 20222023 and 2021,2022, respectively, that are not accounted for under ASC 606, Revenue from Contracts with Customers. These generally include guarantee fees.
6. PRINCIPAL TRANSACTIONS
Principal transactions revenue consists of realized and unrealized gains and losses from trading activities. Trading activities include revenues from fixed income, equities, credit and commodities products and foreign exchange transactions that are managed on a portfolio basis and characterized below based on the primary risk managed by each trading desk.desk (as such, the trading desks can be periodically reorganized and thus the risk categories). Not included in the table below is the impact of net interest income related to trading activities, which is an integral part of trading activities’ profitability. Seeprofitability (see Note 4 for information about net interest income related to trading activities.activities). Principal transactions include CVA (credit valuation adjustments) and FVA (funding valuation adjustments) on over-the-counter derivatives, and gains (losses) on certain economic hedges on loans in ICG. These adjustments are discussed further in Note 20.22.
In certain transactions, Citi incurs fees and presents these fees paid to third parties in operating expenses.
The following table presents Principal transactions revenue:
| | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | 2022 | 2021 | 2022 | 2021 |
Interest rate risks(1) | $ | 460 | | $ | 461 | | $ | 3,381 | | $ | 2,424 | |
Foreign exchange risks(2) | 1,554 | | 924 | | 4,740 | | 2,851 | |
Equity risks(3) | 411 | | 666 | | 1,687 | | 1,869 | |
Commodity and other risks(4) | 403 | | 252 | | 1,466 | | 844 | |
Credit products and risks(5) | (203) | | (70) | | 466 | | 462 | |
| Total | $ | 2,625 | | $ | 2,233 | | $ | 11,740 | | $ | 8,450 | |
| | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | 2023 | 2022 | 2023 | 2022 |
Interest rate risks(1) | $ | 955 | | $ | 458 | | $ | 2,926 | | $ | 3,143 | |
Foreign exchange risks(2) | 1,295 | | 1,555 | | 4,125 | | 4,978 | |
Equity risks(3) | 308 | | 411 | | 1,147 | | 1,687 | |
Commodity and other risks(4) | 475 | | 404 | | 1,443 | | 1,466 | |
Credit products and risks(5) | (25) | | (203) | | (166) | | 466 | |
| Total | $ | 3,008 | | $ | 2,625 | | $ | 9,475 | | $ | 11,740 | |
(1) Includes revenues from government securities and corporate debt, municipal securities, mortgage securities and other debt instruments. Also includes spot and forward trading of currencies and exchange-traded and over-the-counter (OTC) currency options, options on fixed income securities, interest rate swaps, currency swaps, swap options, caps and floors, financial futures, OTC options and forward contracts on fixed income securities.
(2) Includes revenues from foreign exchange spot, forward, option and swap contracts, as well as foreign currency translation (FX translation) gains and losses.
(3) Includes revenues from common, preferred and convertible preferred stock, convertible corporate debt, equity-linked notes and exchange-traded and OTC equity options and warrants.
(4) Primarily includes revenues from crude oil, refined oil products, natural gas and other commodities trades.
(5) Includes revenues from structured credit products.
7. INCENTIVE PLANS
For additional information on Citi’s incentive plans, see Note 7 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
8. RETIREMENT BENEFITS
For additional information on Citi’s retirement benefits, see Note 8 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
Net (Benefit) Expense
The following tables summarizetable summarizes the components of net (benefit) expense recognized in the Consolidated Statement of Income for the Company’s pension and postretirement plans for Significant Plans and All Other Plans. Benefits earned during the period are reported in Compensation and benefits expenses and all other components of the net period benefit cost are reported in Other operating expenses in the Consolidated Statement of Income:
| | | Three Months Ended September 30, | | Three Months Ended September 30, |
| | | Pension plans | Postretirement benefit plans | | Pension plans | Postretirement benefit plans |
| | | U.S. plans | Non-U.S. plans | U.S. plans | Non-U.S. plans | | U.S. plans | Non-U.S. plans | U.S. plans | Non-U.S. plans |
| In millions of dollars | In millions of dollars | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | In millions of dollars | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
| | Benefits earned during the period | $ | — | | $ | — | | $ | 26 | | $ | 36 | | $ | — | | $ | — | | $ | 1 | | $ | 2 | | |
| Service cost | | Service cost | $ | — | | $ | — | | $ | 29 | | $ | 26 | | $ | — | | $ | — | | $ | — | | $ | 1 | |
| Interest cost on benefit obligation | Interest cost on benefit obligation | 120 | | 87 | | 91 | | 67 | | 4 | | 3 | | 21 | | 25 | | Interest cost on benefit obligation | 124 | | 120 | | 105 | | 91 | | 4 | | 4 | | 27 | | 21 | |
| Expected return on assets | Expected return on assets | (153) | | (173) | | (64) | | (65) | | (3) | | (3) | | (16) | | (22) | | Expected return on assets | (160) | | (153) | | (84) | | (64) | | (3) | | (3) | | (20) | | (16) | |
| Amortization of unrecognized: | Amortization of unrecognized: | | | | | | | | Amortization of unrecognized: | | | | | | | |
| Prior service benefit | — | | — | | (2) | | (1) | | (2) | | (3) | | (2) | | (2) | | |
| Prior service (benefit) | | Prior service (benefit) | — | | — | | (1) | | (2) | | (2) | | (2) | | (2) | | (2) | |
| Net actuarial loss (gain) | Net actuarial loss (gain) | 36 | | 57 | | 16 | | 16 | | (2) | | — | | 2 | | 4 | | Net actuarial loss (gain) | 39 | | 36 | | 20 | | 16 | | (3) | | (2) | | (4) | | 2 | |
| Settlement loss(1) | Settlement loss(1) | — | | — | | — | | 1 | | — | | — | | — | | — | | Settlement loss(1) | — | | — | | 5 | | — | | — | | — | | — | | — | |
| | Total net (benefit) expense | $ | 3 | | $ | (29) | | $ | 67 | | $ | 54 | | $ | (3) | | $ | (3) | | $ | 6 | | $ | 7 | | |
| Total net expense (benefit) | | Total net expense (benefit) | $ | 3 | | $ | 3 | | $ | 74 | | $ | 67 | | $ | (4) | | $ | (3) | | $ | 1 | | $ | 6 | |
(1) (Gains) losses dueSettlement relates to divestiture and wind-down activities.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, |
| | Pension plans | Postretirement benefit plans |
| | U.S. plans | Non-U.S. plans | U.S. plans | Non-U.S. plans |
| In millions of dollars | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
| | | | | | | | |
| Service cost | $ | — | | $ | — | | $ | 87 | | $ | 90 | | $ | — | | $ | — | | $ | 1 | | $ | 2 | |
| Interest cost on benefit obligation | 374 | | 311 | | 305 | | 243 | | 13 | | 11 | | 79 | | 67 | |
| Expected return on assets | (481) | | (461) | | (247) | | (196) | | (10) | | (9) | | (59) | | (54) | |
| Amortization of unrecognized: | | | | | | | | |
| Prior service cost (benefit) | 1 | | 1 | | (4) | | (5) | | (7) | | (7) | | (6) | | (6) | |
| Net actuarial loss (gain) | 118 | | 136 | | 54 | | 43 | | (8) | | (5) | | (14) | | 4 | |
Curtailment (gain)(1) | — | | — | | (8) | | (23) | | — | | — | | — | | — | |
Settlement loss (gain)(1) | — | | — | | 9 | | (10) | | — | | — | | — | | — | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Total net expense (benefit) | $ | 12 | | $ | (13) | | $ | 196 | | $ | 142 | | $ | (12) | | $ | (10) | | $ | 1 | | $ | 13 | |
(1) Curtailment and settlement relate to divestiture and wind-down activities.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, |
| | Pension plans | Postretirement benefit plans |
| | U.S. plans | Non-U.S. plans | U.S. plans | Non-U.S. plans |
| In millions of dollars | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
| | | | | | | | |
| Benefits earned during the period | $ | — | | $ | — | | $ | 90 | | $ | 113 | | $ | — | | $ | — | | $ | 2 | | $ | 6 | |
| Interest cost on benefit obligation | 311 | | 264 | | 243 | | 199 | | 11 | | 9 | | 67 | | 74 | |
| Expected return on plan assets | (461) | | (529) | | (196) | | (189) | | (9) | | (10) | | (54) | | (65) | |
| Amortization of unrecognized: | | | | | | | | |
| Prior service cost (benefit) | 1 | | 1 | | (5) | | (4) | | (7) | | (7) | | (6) | | (7) | |
| Net actuarial loss (gain) | 136 | | 173 | | 43 | | 48 | | (5) | | (1) | | 4 | | 12 | |
Curtailment (gain)(1) | — | | — | | (23) | | — | | — | | — | | — | | — | |
Settlement (gain) loss(1) | — | | — | | (10) | | 5 | | — | | — | | — | | — | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Total net (benefit) expense | $ | (13) | | $ | (91) | | $ | 142 | | $ | 172 | | $ | (10) | | $ | (9) | | $ | 13 | | $ | 20 | |
(1) (Gains) losses 2022 includes gains due to curtailment and settlement relaterelating to divestiture activities. Total net expense for non-U.S. plans includes a $36 million net benefit related to the wind-down of Citi’s consumer banking business in Korea.
Funded Status and Accumulated Other Comprehensive Income (AOCI)
The following table summarizes the funded status and amounts recognized on the Consolidated Balance Sheet for the Company’s
Significant Plans:
| | | | Nine Months Ended September 30, 2022 | | Nine Months Ended September 30, 2023 |
| | | Pension plans | Postretirement benefit plans | | Pension plans | Postretirement benefit plans |
| In millions of dollars | In millions of dollars | U.S. plans | Non-U.S. plans | U.S. plans | Non-U.S. plans | In millions of dollars | U.S. plans | Non-U.S. plans | U.S. plans | Non-U.S. plans |
| | Change in projected benefit obligation | Change in projected benefit obligation | | | | Change in projected benefit obligation | | | |
| | Projected benefit obligation at beginning of year | Projected benefit obligation at beginning of year | $ | 12,766 | | $ | 8,001 | | $ | 501 | | $ | 1,169 | | Projected benefit obligation at beginning of year | $ | 9,741 | | $ | 6,375 | | $ | 375 | | $ | 1,013 | |
| Plans measured annually | Plans measured annually | (23) | | (2,071) | | — | | (298) | | Plans measured annually | (19) | | (1,774) | | — | | (193) | |
| Projected benefit obligation at beginning of year—Significant Plans | Projected benefit obligation at beginning of year—Significant Plans | $ | 12,743 | | $ | 5,930 | | $ | 501 | | $ | 871 | | Projected benefit obligation at beginning of year—Significant Plans | $ | 9,722 | | $ | 4,601 | | $ | 375 | | $ | 820 | |
| First quarter activity | (1,234) | | (285) | | (50) | | (71) | | |
| Second quarter activity | (1,051) | | (907) | | (45) | | (49) | | |
| First-quarter activity | | First-quarter activity | 160 | | 241 | | (1) | | 70 | |
| Second-quarter activity | | Second-quarter activity | (265) | | 179 | | (27) | | 75 | |
| | Projected benefit obligation at June 30, 2022—Significant Plans | $ | 10,458 | | $ | 4,738 | | $ | 406 | | $ | 751 | | |
| Projected benefit obligation at June 30, 2023—Significant Plans | | Projected benefit obligation at June 30, 2023—Significant Plans | $ | 9,617 | | $ | 5,021 | | $ | 347 | | $ | 965 | |
| | Benefits earned during the period | — | | 12 | | — | | — | | |
| Service cost | | Service cost | — | | 12 | | — | | — | |
| Interest cost on benefit obligation | Interest cost on benefit obligation | 120 | | 70 | | 4 | | 19 | | Interest cost on benefit obligation | 124 | | 86 | | 4 | | 24 | |
Actuarial (gain)(1)(4) | Actuarial (gain)(1)(4) | (642) | | (278) | | (24) | | (33) | | Actuarial (gain)(1)(4) | (435) | | (264) | | (17) | | (95) | |
| Benefits paid, net of participants’ contributions and government subsidy | (230) | | (79) | | (12) | | (14) | | |
| Benefits paid, net of participants’ contributions | | Benefits paid, net of participants’ contributions | (217) | | (85) | | (11) | | (18) | |
| Settlement (gain)(2) | — | | (2) | | — | | — | | |
| | | Foreign exchange impact and other | Foreign exchange impact and other | — | | (83) | | — | | — | | Foreign exchange impact and other | — | | (91) | | — | | (15) | |
| | Projected benefit obligation at period end—Significant Plans | Projected benefit obligation at period end—Significant Plans | $ | 9,706 | | $ | 4,378 | | $ | 374 | | $ | 723 | | Projected benefit obligation at period end—Significant Plans | $ | 9,089 | | $ | 4,679 | | $ | 323 | | $ | 861 | |
| Change in plan assets | Change in plan assets | | | | Change in plan assets | | | |
| | Plan assets at fair value at beginning of year | Plan assets at fair value at beginning of year | $ | 12,977 | | $ | 7,614 | | $ | 319 | | $ | 1,043 | | Plan assets at fair value at beginning of year | $ | 10,145 | | $ | 6,086 | | $ | 253 | | $ | 855 | |
| Plans measured annually | Plans measured annually | — | | (1,419) | | — | | (7) | | Plans measured annually | — | | (1,226) | | — | | (7) | |
| Plan assets at fair value at beginning of year—Significant Plans | Plan assets at fair value at beginning of year—Significant Plans | $ | 12,977 | | $ | 6,195 | | $ | 319 | | $ | 1,036 | | Plan assets at fair value at beginning of year—Significant Plans | $ | 10,145 | | $ | 4,860 | | $ | 253 | | $ | 848 | |
| First quarter activity | (1,030) | | (226) | | (19) | | (135) | | |
| Second quarter activity | (1,108) | | (762) | | (34) | | (73) | | |
| Plan assets at fair value at June 30, 2022—Significant Plans | $ | 10,839 | | $ | 5,207 | | $ | 266 | | $ | 828 | | |
| First-quarter activity | | First-quarter activity | 143 | | 225 | | 5 | | 73 | |
| Second-quarter activity | | Second-quarter activity | (131) | | (6) | | (2) | | 24 | |
| Plan assets at fair value at June 30, 2023—Significant Plans | | Plan assets at fair value at June 30, 2023—Significant Plans | $ | 10,157 | | $ | 5,079 | | $ | 256 | | $ | 945 | |
| | Actual return on plan assets | Actual return on plan assets | (497) | | (310) | | (10) | | (42) | | Actual return on plan assets | (215) | | (113) | | (3) | | (29) | |
| Company contributions, net of reimbursements | Company contributions, net of reimbursements | 13 | | 12 | | 6 | | — | | Company contributions, net of reimbursements | 15 | | 8 | | (20) | | — | |
| | Benefits paid, net of participants’ contributions and government subsidy | (230) | | (79) | | (12) | | (14) | | |
| Benefits paid, net of participants’ contributions | | Benefits paid, net of participants’ contributions | (217) | | (85) | | (11) | | (18) | |
| Settlement (gain)(2) | — | | (2) | | — | | — | | |
| | | Foreign exchange impact and other | Foreign exchange impact and other | — | | (86) | | — | | — | | Foreign exchange impact and other | — | | (91) | | — | | (16) | |
| | Plan assets at fair value at period end—Significant Plans | Plan assets at fair value at period end—Significant Plans | $ | 10,125 | | $ | 4,742 | | $ | 250 | | $ | 772 | | Plan assets at fair value at period end—Significant Plans | $ | 9,740 | | $ | 4,798 | | $ | 222 | | $ | 882 | |
| Qualified plans(3)(1) | Qualified plans(3)(1) | $ | 941 | | $ | 364 | | $ | (124) | | $ | 49 | | Qualified plans(3)(1) | $ | 1,144 | | $ | 119 | | $ | (101) | | $ | 21 | |
Nonqualified plans(4)(2) | Nonqualified plans(4)(2) | (522) | | — | | — | | — | | Nonqualified plans(4)(2) | (493) | | — | | — | | — | |
| Funded status of the plans at period end—Significant Plans | Funded status of the plans at period end—Significant Plans | $ | 419 | | $ | 364 | | $ | (124) | | $ | 49 | | Funded status of the plans at period end—Significant Plans | $ | 651 | | $ | 119 | | $ | (101) | | $ | 21 | |
| Net amount recognized at period end | Net amount recognized at period end | | | | Net amount recognized at period end | | | |
| Benefit asset | Benefit asset | $ | 941 | | $ | 793 | | $ | — | | $ | 49 | | Benefit asset | $ | 1,144 | | $ | 738 | | $ | — | | $ | 21 | |
| Benefit liability | Benefit liability | (522) | | (429) | | (124) | | — | | Benefit liability | (493) | | (619) | | (101) | | — | |
| Net amount recognized on the balance sheet—Significant Plans | Net amount recognized on the balance sheet—Significant Plans | $ | 419 | | $ | 364 | | $ | (124) | | $ | 49 | | Net amount recognized on the balance sheet—Significant Plans | $ | 651 | | $ | 119 | | $ | (101) | | $ | 21 | |
Amounts recognized in AOCI at period end(5)(3) | Amounts recognized in AOCI at period end(5)(3) | | | | Amounts recognized in AOCI at period end(5)(3) | | | |
| | Prior service (expense) benefit | Prior service (expense) benefit | $ | — | | $ | (1) | | $ | 85 | | $ | 35 | | Prior service (expense) benefit | $ | — | | $ | (3) | | $ | 75 | | $ | 34 | |
| Net actuarial (loss) gain | Net actuarial (loss) gain | (6,438) | | (1,060) | | 127 | | (236) | | Net actuarial (loss) gain | (6,244) | | (1,438) | | 136 | | (281) | |
| Net amount recognized in equity (pretax)—Significant Plans | Net amount recognized in equity (pretax)—Significant Plans | $ | (6,438) | | $ | (1,061) | | $ | 212 | | $ | (201) | | Net amount recognized in equity (pretax)—Significant Plans | $ | (6,244) | | $ | (1,441) | | $ | 211 | | $ | (247) | |
| Accumulated benefit obligation at period end—Significant Plans | Accumulated benefit obligation at period end—Significant Plans | $ | 9,705 | | $ | 4,205 | | $ | 374 | | $ | 723 | | Accumulated benefit obligation at period end—Significant Plans | $ | 9,089 | | $ | 4,501 | | $ | 323 | | $ | 861 | |
(1)During 2022, the actuarial gain is primarily due to the increase in global discount rates.
(2)Gains due to settlement relate to divestiture activities.
(3)The U.S. qualified pension plan is fully funded under specified Employee Retirement Income Security Act of 1974, as amended (ERISA), funding rules as of January 1, 20222023 and no minimum required funding is expected for 2022.2023.
(4)(2)The nonqualified plans of the Company are unfunded.
(5)(3)The framework for the Company’s pension oversight process includes monitoring of potential settlement charges for all plans. Settlement accounting is triggered when either the sum of all settlements (including lump sumlump-sum payments) for the year is greater than service plus interest costs or if more than 10% of the plan’s projected benefit obligation will be settled. Because some of Citi’s significant plans are frozen and have no material service cost, settlement accounting may apply in the future.
(4)During 2023, the actuarial gain is primarily due to the increase in global discount rates.
The following table showspresents the change in AOCI related to the Company’s pension, postretirement and post employment plans:
| | In millions of dollars | In millions of dollars | Three Months Ended
September 30, 2022 | Nine Months Ended
September 30, 2022 | | In millions of dollars | Three Months Ended
September 30, 2023 | Nine Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | |
| Beginning of period balance, net of tax(1)(2) | Beginning of period balance, net of tax(1)(2) | $ | (5,770) | | $ | (5,852) | | | Beginning of period balance, net of tax(1)(2) | $ | (5,995) | | $ | (5,755) | | $ | (5,770) | | $ | (5,852) | | |
| | Actuarial assumptions changes and plan experience | Actuarial assumptions changes and plan experience | 977 | | 4,001 | | | Actuarial assumptions changes and plan experience | 818 | | 703 | | 977 | | 4,001 | | |
| Net asset (loss) due to difference between actual and expected returns | Net asset (loss) due to difference between actual and expected returns | (1,084) | | (4,221) | | | Net asset (loss) due to difference between actual and expected returns | (614) | | (676) | | (1,084) | | (4,221) | | |
| Net amortization | Net amortization | 43 | | 159 | | | Net amortization | 47 | | 135 | | 43 | | 159 | | |
| Curtailment/settlement (gain)(3) | — | | (32) | | | |
| Curtailment/settlement loss (gain)(3) | | Curtailment/settlement loss (gain)(3) | 5 | | 1 | | — | | (32) | | |
| Foreign exchange impact and other | Foreign exchange impact and other | 60 | | 193 | | | Foreign exchange impact and other | 124 | | (95) | | 60 | | 193 | | |
| Change in deferred taxes, net | Change in deferred taxes, net | 41 | | 19 | | | Change in deferred taxes, net | (68) | | 4 | | 41 | | 19 | | |
| Change, net of tax | Change, net of tax | $ | 37 | | $ | 119 | | | Change, net of tax | $ | 312 | | $ | 72 | | $ | 37 | | $ | 119 | | |
End of period balance, net of tax(1)(2) | End of period balance, net of tax(1)(2) | $ | (5,733) | | $ | (5,733) | | | End of period balance, net of tax(1)(2) | $ | (5,683) | | $ | (5,683) | | $ | (5,733) | | $ | (5,733) | | |
(1)See Note 1718 for further discussion of net AOCI balance.
(2)Includes net-of-tax amounts for certain profit-sharing plans outside the U.S.
(3)Curtailment and settlement relate to divestiture activities.
Plan Assumptions
The discount rates utilized during the periodCertain assumptions used in determining the pension and postretirement benefit obligations and net (benefit)benefit expense for the Significant Plans are as follows:
| | Net (benefit) expense assumed discount rates during the period | Three Months Ended | |
| Sept. 30, 2022 | | Sept. 30, 2021 | |
| During the period | | During the period | Three Months Ended |
| Sept. 30, 2023 | | Jun. 30, 2023 | Sept. 30, 2022 |
| Discount rate | | Discount rate | | | |
| U.S. plans | U.S. plans | | | | U.S. plans | | | |
| Qualified pension | Qualified pension | 4.80 | % | | 2.75 | % | Qualified pension | 5.40% | | 5.15% | 4.80% |
| Nonqualified pension | Nonqualified pension | 4.80 | | | 2.70 | | Nonqualified pension | 5.45 | | 5.20 | 4.80 |
| Postretirement | Postretirement | 4.75 | | | 2.60 | | Postretirement | 5.50 | | 5.25 | 4.75 |
| Non-U.S. plans | Non-U.S. plans | | | | Non-U.S. plans | | | | |
| Pension | Pension | 2.00–10.75 | | 0.25–9.25 | Pension | 1.80–10.40 | | 2.05–10.65 | 2.00–10.75 |
| Weighted average | Weighted average | 6.68 | | | 4.23 | | Weighted average | 7.72 | | 7.64 | 6.68 |
| Postretirement | Postretirement | 10.75 | | | 9.50 | | Postretirement | 10.40 | | 10.70 | 10.75 |
| Expected return on assets | | Expected return on assets | | |
| U.S. plans | | U.S. plans | | | |
| Qualified pension | | Qualified pension | 5.70 | | 5.70 | 5.00 |
| Postretirement | | Postretirement | 5.70/3.00 | | 5.70/3.00 | 5.00/1.50 |
| Non-U.S. plans | | Non-U.S. plans | | | |
| Pension | | Pension | 4.50–9.90 | | 4.10–9.90 | 2.00–8.00 |
| Weighted average | | Weighted average | 6.56 | | 6.26 | 4.72 |
| Postretirement | | Postretirement | 8.70 | | 8.70 | 8.00 |
The discount rates utilized at period end in determining the pension and postretirement benefit obligations for the Significant Plans are as follows:
| | | | | | | | | | | | |
| Plan obligations assumed discount rates at period ended | Sept. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
| U.S. plans | | | | |
| Qualified pension | 5.65 | % | 4.80 | % | 3.80 | % | |
| Nonqualified pension | 5.60 | | 4.80 | | 3.85 | | |
| Postretirement | 5.65 | | 4.75 | | 3.85 | | |
| Non-U.S. plans | | | | |
| Pension | 2.10–11.30 | 2.00–10.75 | 1.10–10.00 | |
| Weighted average | 7.64 | | 6.68 | | 5.55 | | |
| Postretirement | 11.25 | | 10.75 | | 10.10 | | |
| | | | | | | | | | | | |
At period ended(1) | Sept. 30, 2023 | Jun. 30, 2023 | Sept. 30, 2022 | |
| Discount rate | | | | |
| U.S. plans | | | | |
| Qualified pension | 6.05% | 5.40% | 5.65% | |
| Nonqualified pension | 6.10 | 5.45 | 5.60 | |
| Postretirement | 6.10 | 5.50 | 5.65 | |
| Non-U.S. plans | | | | |
| Pension | 1.85–11.55 | 1.80–10.40 | 2.10–11.30 | |
| Weighted average | 8.35 | 7.72 | 7.64 | |
| Postretirement | 11.55 | 10.40 | 11.25 | |
| Expected return on assets | | | |
| U.S. plans | | | | |
| Qualified pension | 5.70 | 5.70 | 5.00 | |
| Postretirement | 5.70/3.00 | 5.70/3.00 | 5.00/1.50 | |
| Non-U.S. plans | | | | |
| Pension | 4.50–9.90 | 4.50–9.90 | 2.00–8.00 | |
| Weighted average | 6.70 | 6.56 | 5.48 | |
| Postretirement | 8.70 | 8.70 | 8.00 | |
(1) The assumptions for the discount rate and expected return on assets at the end of each quarter are used in the following quarter.
Sensitivities of Certain Key Assumptions
The following table summarizes the estimated effect on the Company’s Significant Plans quarterly net expense (benefit) of a one-percentage-point change in the discount rate:
| | | Three Months Ended September 30, 2022 | | Three Months Ended September 30, 2023 |
| In millions of dollars | In millions of dollars | One-percentage-point increase | | One-percentage-point decrease | In millions of dollars | One-percentage-point increase | | One-percentage-point decrease |
| Pension | Pension | | | | Pension | | | |
| U.S. plans | U.S. plans | $ | 6 | | | $ | (7) | | U.S. plans | $ | 6 | | | $ | (7) | |
| Non-U.S. plans | Non-U.S. plans | — | | | 2 | | Non-U.S. plans | (2) | | | 3 | |
| Postretirement | Postretirement | | | | Postretirement | | | |
| | Non-U.S. plans | Non-U.S. plans | (1) | | | 1 | | Non-U.S. plans | (1) | | | 1 | |
Contributions
For the U.S. pension plans, there were no required minimum cash contributions during the first nine months of 2022.2023.
The following table summarizes the Company’s actual contributions for the nine months ended September 30, 20222023 and 2021,2022, as well as expected Company contributions for the remainder of 20222023 and the actual contributions made in 2021:2022:
| | | | Pension plans | Postretirement plans | | Pension plans | Postretirement plans |
| | | U.S. plans(1) | | Non-U.S. plans | | U.S. plans | | Non-U.S. plans | | | U.S. plans(1) | | Non-U.S. plans | | U.S. plans | | Non-U.S. plans | |
| In millions of dollars | In millions of dollars | 2022 | 2021 | | 2022 | 2021 | | 2022 | 2021 | | 2022 | 2021 | | In millions of dollars | 2023 | 2022 | | 2023 | 2022 | | 2023 | 2022 | | 2023 | 2022 | |
Company contributions (reimbursements)(2)(3) for the nine months ended September 30 | $ | 41 | | $ | 41 | | | $ | 417 | | $ | 116 | | | $ | 5 | | $ | 19 | | | $ | 7 | | $ | 6 | | | |
Company contributions(2)(3) for the nine months ended September 30 | | Company contributions(2)(3) for the nine months ended September 30 | $ | 43 | | $ | 41 | | | $ | 87 | | $ | 417 | | | $ | — | | $ | 5 | | | $ | 7 | | $ | 7 | | |
Company contributions made during the remainder of the year | Company contributions made during the remainder of the year | — | | 15 | | | — | | 39 | | | — | | 3 | | | — | | 2 | | | Company contributions made during the remainder of the year | — | | 14 | | | — | | 77 | | | — | | 9 | | | — | | 2 | | |
Company contributions expected to be made during the remainder of the year(3) | Company contributions expected to be made during the remainder of the year(3) | 16 | | | | 26 | | | | 2 | | | | 2 | | | | Company contributions expected to be made during the remainder of the year(3) | 16 | | — | | | 25 | | — | | | 1 | | — | | | 2 | | — | | |
| | |
(1)The U.S. plans include benefits paid directly by the Company for the nonqualified pension plans.
(2)Company contributions are composed of cash contributions made to the plans and benefits paid directly by the Company.
(3)2022 benefit payments have increased due to the wind-down of Citi’s consumer banking business in Korea, as it is expected that employees who elected the VERP will be withdrawing their pension plan assets.Korea.
Defined Contribution Plans
The following table summarizes the Company’s contributions for the defined contribution plans:
| | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | 2022 | 2021 | 2022 | 2021 |
| U.S. plans | $ | 119 | | $ | 113 | | $ | 356 | | $ | 324 | |
| Non-U.S. plans | 98 | | 87 | | 303 | | 270 | |
| | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, | |
| In millions of dollars | 2023 | 2022 | 2023 | 2022 | | |
| U.S. plans | $ | 138 | | $ | 119 | | $ | 413 | | $ | 356 | | | |
| Non-U.S. plans | 114 | | 98 | | 342 | | 303 | | | |
Post Employment Plans
The following table summarizes the net expense recognized in the Consolidated Statement of Income for the Company’s U.S. post employment plans:
| | | Three Months Ended September 30, | Nine Months Ended September 30, | | Three Months Ended September 30, | Nine Months Ended September 30, | |
| In millions of dollars | In millions of dollars | 2022 | 2021 | 2022 | 2021 | In millions of dollars | 2023 | 2022 | 2023 | 2022 | |
| Service-related expense | Service-related expense | | | | Service-related expense | | | | |
| | Amortization of unrecognized: | Amortization of unrecognized: | | | | Amortization of unrecognized: | | | | |
| | Net actuarial loss | Net actuarial loss | $ | 1 | | $ | 1 | | $ | 2 | | $ | 2 | | Net actuarial loss | $ | 1 | | $ | 1 | | $ | 2 | | $ | 2 | | |
| | Total service-related expense | Total service-related expense | $ | 1 | | $ | 1 | | $ | 2 | | $ | 2 | | Total service-related expense | $ | 1 | | $ | 1 | | $ | 2 | | $ | 2 | | |
| Non-service-related expense | Non-service-related expense | $ | 2 | | $ | 3 | | $ | 8 | | $ | 7 | | Non-service-related expense | 5 | | 2 | | 10 | | 8 | | |
| Total net expense | Total net expense | $ | 3 | | $ | 4 | | $ | 10 | | $ | 9 | | Total net expense | $ | 6 | | $ | 3 | | $ | 12 | | $ | 10 | | |
9. EARNINGS PER SHARE
The following table reconciles the income and share data used in the basic and diluted earnings per share (EPS) computations:
| | | Three Months Ended September 30, | Nine Months Ended September 30, | | Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars, except per share amounts | In millions of dollars, except per share amounts | 2022 | 2021 | 2022 | 2021 | In millions of dollars, except per share amounts | 2023 | 2022 | 2023 | 2022 |
| Earnings per common share | Earnings per common share | | | | Earnings per common share | | | |
| Income from continuing operations before attribution to noncontrolling interests | $ | 3,515 | | $ | 4,669 | | $ | 12,629 | | $ | 18,839 | | |
| Income from continuing operations before attribution of noncontrolling interests | | Income from continuing operations before attribution of noncontrolling interests | $ | 3,585 | | $ | 3,515 | | $ | 11,189 | | $ | 12,629 | |
| Less: Noncontrolling interests from continuing operations | Less: Noncontrolling interests from continuing operations | 30 | | 24 | | 68 | | 67 | | Less: Noncontrolling interests from continuing operations | 41 | | 30 | | 122 | | 68 | |
| Net income from continuing operations (for EPS purposes) | Net income from continuing operations (for EPS purposes) | $ | 3,485 | | $ | 4,645 | | $ | 12,561 | | $ | 18,772 | | Net income from continuing operations (for EPS purposes) | $ | 3,544 | | $ | 3,485 | | $ | 11,067 | | $ | 12,561 | |
| Income (loss) from discontinued operations, net of taxes | Income (loss) from discontinued operations, net of taxes | (6) | | (1) | | (229) | | 7 | | Income (loss) from discontinued operations, net of taxes | 2 | | (6) | | — | | (229) | |
| Citigroup’s net income | Citigroup’s net income | $ | 3,479 | | $ | 4,644 | | $ | 12,332 | | $ | 18,779 | | Citigroup’s net income | $ | 3,546 | | $ | 3,479 | | $ | 11,067 | | $ | 12,332 | |
| Less: Preferred dividends | Less: Preferred dividends | 277 | | 266 | | 794 | | 811 | | Less: Preferred dividends | 333 | | 277 | | 898 | | 794 | |
| Net income available to common shareholders | Net income available to common shareholders | $ | 3,202 | | $ | 4,378 | | $ | 11,538 | | $ | 17,968 | | Net income available to common shareholders | $ | 3,213 | | $ | 3,202 | | $ | 10,169 | | $ | 11,538 | |
| Less: Dividends and undistributed earnings allocated to employee restricted and deferred shares with rights to dividends, applicable to basic EPS | 28 | | 26 | | 89 | | 134 | | |
Less: Dividends and undistributed earnings allocated to employee restricted and deferred shares with rights to dividends, and other relevant items(1), applicable to basic EPS | | Less: Dividends and undistributed earnings allocated to employee restricted and deferred shares with rights to dividends, and other relevant items(1), applicable to basic EPS | 53 | | 28 | | 121 | | 89 | |
| Net income allocated to common shareholders for basic EPS | Net income allocated to common shareholders for basic EPS | $ | 3,174 | | $ | 4,352 | | $ | 11,449 | | $ | 17,834 | | Net income allocated to common shareholders for basic EPS | $ | 3,160 | | $ | 3,174 | | $ | 10,048 | | $ | 11,449 | |
Weighted-average common shares outstanding applicable to basic EPS (in millions) | Weighted-average common shares outstanding applicable to basic EPS (in millions) | 1,936.8 | | 2,009.3 | | 1,950.0 | | 2,049.3 | | Weighted-average common shares outstanding applicable to basic EPS (in millions) | 1,924.4 | | 1,936.8 | | 1,936.9 | | 1,950.0 | |
Basic earnings per share(1)(2) | Basic earnings per share(1)(2) | | | | Basic earnings per share(1)(2) | | | |
| Income from continuing operations | Income from continuing operations | $ | 1.64 | | $ | 2.17 | | $ | 5.99 | | $ | 8.70 | | Income from continuing operations | $ | 1.64 | | $ | 1.64 | | $ | 5.19 | | $ | 5.99 | |
| Discontinued operations | Discontinued operations | — | | — | | (0.12) | | — | | Discontinued operations | — | | — | | — | | (0.12) | |
| Net income per share—basic | Net income per share—basic | $ | 1.64 | | $ | 2.17 | | $ | 5.87 | | $ | 8.70 | | Net income per share—basic | $ | 1.64 | | $ | 1.64 | | $ | 5.19 | | $ | 5.87 | |
| Diluted earnings per share | Diluted earnings per share | | | | Diluted earnings per share | | | |
| Net income allocated to common shareholders for basic EPS | Net income allocated to common shareholders for basic EPS | $ | 3,174 | | $ | 4,352 | | $ | 11,449 | | $ | 17,834 | | Net income allocated to common shareholders for basic EPS | $ | 3,160 | | $ | 3,174 | | $ | 10,048 | | $ | 11,449 | |
| Add back: Dividends allocated to employee restricted and deferred shares with rights to dividends that are forfeitable | Add back: Dividends allocated to employee restricted and deferred shares with rights to dividends that are forfeitable | 11 | | 8 | | 30 | | 23 | | Add back: Dividends allocated to employee restricted and deferred shares with rights to dividends that are forfeitable | 16 | | 11 | | 42 | | 30 | |
| Net income allocated to common shareholders for diluted EPS | Net income allocated to common shareholders for diluted EPS | $ | 3,185 | | $ | 4,360 | | $ | 11,479 | | $ | 17,857 | | Net income allocated to common shareholders for diluted EPS | $ | 3,176 | | $ | 3,185 | | $ | 10,090 | | $ | 11,479 | |
Weighted-average common shares outstanding applicable to basic EPS (in millions) | Weighted-average common shares outstanding applicable to basic EPS (in millions) | 1,936.8 | | 2,009.3 | | 1,950.0 | | 2,049.3 | | Weighted-average common shares outstanding applicable to basic EPS (in millions) | 1,924.4 | | 1,936.8 | | 1,936.9 | | 1,950.0 | |
| Effect of dilutive securities | Effect of dilutive securities | | | | Effect of dilutive securities | | | |
Options(2)(3) | Options(2)(3) | — | | — | | — | | — | | Options(2)(3) | — | | — | | — | | — | |
| Other employee plans | Other employee plans | 18.3 | | 16.9 | | 17.1 | | 16.0 | | Other employee plans | 27.3 | | 18.3 | | 24.6 | | 17.1 | |
Adjusted weighted-average common shares outstanding applicable to diluted EPS (in millions)(3)(4) | Adjusted weighted-average common shares outstanding applicable to diluted EPS (in millions)(3)(4) | 1,955.1 | | 2,026.2 | | 1,967.1 | | 2,065.3 | | Adjusted weighted-average common shares outstanding applicable to diluted EPS (in millions)(3)(4) | 1,951.7 | | 1,955.1 | | 1,961.5 | | 1,967.1 | |
Diluted earnings per share(1)(2) | Diluted earnings per share(1)(2) | | | | | Diluted earnings per share(1)(2) | | | | |
| Income from continuing operations | Income from continuing operations | $ | 1.63 | | $ | 2.15 | | $ | 5.95 | | $ | 8.64 | | Income from continuing operations | $ | 1.63 | | $ | 1.63 | | $ | 5.14 | | $ | 5.95 | |
| Discontinued operations | Discontinued operations | — | | — | | (0.12) | | — | | Discontinued operations | — | | — | | — | | (0.12) | |
Net income per share—diluted | Net income per share—diluted | $ | 1.63 | | $ | 2.15 | | $ | 5.84 | | $ | 8.65 | | Net income per share—diluted | $ | 1.63 | | $ | 1.63 | | $ | 5.14 | | $ | 5.84 | |
(1)Other relevant items includes issuance costs of $16 million related to the redemption of preferred stock Series A and B in the third quarter of 2023. These issuance costs were reclassified from Additional paid-in capital to Retained earnings upon redemption of the preferred stock. See Note 19.
(2)Due to rounding, earnings per share on continuing operations and discontinued operations may not sum to earnings per share on net income.
(2)(3) During the first, second and third quarters of 20222023 and 2021,2022, no significant options to purchase shares of common stock were outstanding.
(3)(4) Due to rounding, weighted-average common shares outstanding applicable to basic EPS and the effect of dilutive securities may not sum to weighted-average common shares outstanding applicable to diluted EPS.
10. SECURITIES BORROWED, LOANED AND SUBJECT TO REPURCHASE AGREEMENTS
For additional information on the Company’s resale and repurchase agreements and securities borrowing and lending agreements, see Note 11 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
Securities borrowed and purchased under agreements to resell, at their respective carrying values, consisted of the following:
| | In millions of dollars | In millions of dollars | September 30,
2022 | December 31, 2021 | In millions of dollars | September 30,
2023 | December 31, 2022 |
| Securities purchased under agreements to resell | Securities purchased under agreements to resell | $ | 268,471 | | $ | 236,252 | | Securities purchased under agreements to resell | $ | 264,838 | | $ | 291,272 | |
| Deposits paid for securities borrowed | Deposits paid for securities borrowed | 80,812 | | 91,042 | | Deposits paid for securities borrowed | 70,274 | | 74,165 | |
Total, net(1) | Total, net(1) | $ | 349,283 | | $ | 327,294 | | Total, net(1) | $ | 335,112 | | $ | 365,437 | |
Allowance for credit losses on securities purchased and borrowed(2) | Allowance for credit losses on securities purchased and borrowed(2) | (69) | | (6) | | Allowance for credit losses on securities purchased and borrowed(2) | (53) | | (36) | |
| Total, net of allowance | Total, net of allowance | $ | 349,214 | | $ | 327,288 | | Total, net of allowance | $ | 335,059 | | $ | 365,401 | |
Securities loaned and sold under agreements to repurchase, at their respective carrying values, consisted of the following:
| | In millions of dollars | In millions of dollars | September 30,
2022 | December 31, 2021 | In millions of dollars | September 30,
2023 | December 31, 2022 |
| Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | $ | 186,055 | | $ | 174,255 | | Securities sold under agreements to repurchase | $ | 242,611 | | $ | 183,827 | |
| Deposits received for securities loaned | Deposits received for securities loaned | 17,374 | | 17,030 | | Deposits received for securities loaned | 14,159 | | 18,617 | |
Total, net(1) | Total, net(1) | $ | 203,429 | | $ | 191,285 | | Total, net(1) | $ | 256,770 | | $ | 202,444 | |
(1) The above tables do not include securities-for-securities lending transactions of $3.2$7.2 billion and $3.6$4.4 billion at September 30, 20222023 and December 31, 2021,2022, respectively, where the Company acts as lender and receives securities that can be sold or pledged as collateral. In these transactions, the Company recognizes the securities received at fair value within Other assets and the obligation to return those securities as a liability within Brokerage payables.
(2) See Note 14 for further information.
It is the Company’s policy to take possession of the underlying collateral, monitor its market value relative to the amounts due under the agreements and, when necessary, require prompt transfer of additional collateral in order to maintain contractual margin protection. For resale and repurchase agreements, when necessary, the Company posts additional collateral in order to maintain contractual margin protection.
A substantial portion of the resale and repurchase agreements is recorded at fair value as the Company elected the fair value option, as described in Notes 2022 and 21.23. The remaining portion is carried at the amount of cash initially advanced or received, plus accrued interest, as specified in the respective agreements.
A substantial portion of securities borrowing and lending agreements is recorded at the amount of cash advanced or received. The remaining portion is recorded at fair value as the Company elected the fair value option for certain securities borrowed and loaned portfolios, as described in Note 21.23. With respect to securities loaned, the Company receives cash collateral in an amount generally in excess of the market value of the securities loaned. The Company monitors the market value of securities borrowed and securities loaned on a daily basis and posts or obtains additional collateral in order to maintain contractual margin protection.
The following tables present the gross and net resale and repurchase agreements and securities borrowing and lending
agreements and the related offsetting amounts permitted under ASC 210-20-45. The tables also include amounts related to financial instruments that are not permitted to be offset under ASC 210-20-45, but would be eligible for offsetting to the extent that an event of default has occurred and a legal opinion supporting enforceability of the offsetting rights has been obtained. Remaining exposures continue to be secured by financial collateral, but the Company may not have sought or been able to obtain a legal opinion evidencing enforceability of the offsetting right.
| | | | As of September 30, 2022 | | As of September 30, 2023 |
| In millions of dollars | In millions of dollars | Gross amounts
of recognized
assets | Gross amounts
offset on the
Consolidated
Balance Sheet(1) | Net amounts of
assets included on
the Consolidated
Balance Sheet | Amounts
not offset on the
Consolidated Balance
Sheet but eligible for
offsetting upon
counterparty default(2) | Net
amounts(3) | In millions of dollars | Gross amounts
of recognized
assets | Gross amounts
offset on the
Consolidated
Balance Sheet(1) | Net amounts of
assets included on
the Consolidated
Balance Sheet | Amounts
not offset on the
Consolidated Balance
Sheet but eligible for
offsetting upon
counterparty default(2) | Net
amounts(3) |
| Securities purchased under agreements to resell | Securities purchased under agreements to resell | $ | 368,675 | | $ | 100,204 | | $ | 268,471 | | $ | 188,620 | | $ | 79,851 | | Securities purchased under agreements to resell | $ | 499,862 | | $ | 235,024 | | $ | 264,838 | | $ | 239,448 | | $ | 25,390 | |
| Deposits paid for securities borrowed | Deposits paid for securities borrowed | 89,452 | | 8,640 | | 80,812 | | 12,272 | | 68,540 | | Deposits paid for securities borrowed | 85,480 | | 15,206 | | 70,274 | | 18,388 | | 51,886 | |
| Total | Total | $ | 458,127 | | $ | 108,844 | | $ | 349,283 | | $ | 200,892 | | $ | 148,391 | | Total | $ | 585,342 | | $ | 250,230 | | $ | 335,112 | | $ | 257,836 | | $ | 77,276 | |
| | In millions of dollars | In millions of dollars | Gross amounts
of recognized
liabilities | Gross amounts
offset on the
Consolidated
Balance Sheet(1) | Net amounts of
liabilities included on
the Consolidated
Balance Sheet | Amounts
not offset on the
Consolidated Balance
Sheet but eligible for
offsetting upon
counterparty default(2) | Net
amounts(3) | In millions of dollars | Gross amounts
of recognized
liabilities | Gross amounts
offset on the
Consolidated
Balance Sheet(1) | Net amounts of
liabilities included on
the Consolidated
Balance Sheet | Amounts
not offset on the
Consolidated Balance
Sheet but eligible for
offsetting upon
counterparty default(2) | Net amounts(3) |
| Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | $ | 286,259 | | $ | 100,204 | | $ | 186,055 | | $ | 74,279 | | $ | 111,776 | | Securities sold under agreements to repurchase | $ | 477,635 | | $ | 235,024 | | $ | 242,611 | | $ | 155,168 | | $ | 87,443 | |
| Deposits received for securities loaned | Deposits received for securities loaned | 26,014 | | 8,640 | | 17,374 | | 1,302 | | 16,072 | | Deposits received for securities loaned | 29,365 | | 15,206 | | 14,159 | | 3,877 | | 10,282 | |
| Total | Total | $ | 312,273 | | $ | 108,844 | | $ | 203,429 | | $ | 75,581 | | $ | 127,848 | | Total | $ | 507,000 | | $ | 250,230 | | $ | 256,770 | | $ | 159,045 | | $ | 97,725 | |
| | | | As of December 31, 2021 | | | As of December 31, 2022 | |
| In millions of dollars | In millions of dollars | Gross amounts
of recognized
assets | Gross amounts
offset on the
Consolidated
Balance Sheet(1) | Net amounts of
assets included on
the Consolidated
Balance Sheet | Amounts
not offset on the
Consolidated Balance
Sheet but eligible for
offsetting upon
counterparty default(2) | Net
amounts(3) | | In millions of dollars | Gross amounts
of recognized
assets | Gross amounts
offset on the
Consolidated
Balance Sheet(1) | Net amounts of
assets included on
the Consolidated
Balance Sheet | Amounts
not offset on the
Consolidated Balance
Sheet but eligible for
offsetting upon
counterparty default(2) | Net
amounts(3) | |
| Securities purchased under agreements to resell | Securities purchased under agreements to resell | $ | 367,594 | | $ | 131,342 | | $ | 236,252 | | $ | 205,349 | | $ | 30,903 | | | Securities purchased under agreements to resell | $ | 403,663 | | $ | 112,391 | | $ | 291,272 | | $ | 204,077 | | $ | 87,195 | | |
| Deposits paid for securities borrowed | Deposits paid for securities borrowed | 107,041 | | 15,999 | | 91,042 | | 17,326 | | 73,716 | | | Deposits paid for securities borrowed | 88,817 | | 14,652 | | 74,165 | | 13,844 | | 60,321 | | |
| Total | Total | $ | 474,635 | | $ | 147,341 | | $ | 327,294 | | $ | 222,675 | | $ | 104,619 | | | Total | $ | 492,480 | | $ | 127,043 | | $ | 365,437 | | $ | 217,921 | | $ | 147,516 | | |
| | In millions of dollars | In millions of dollars | Gross amounts
of recognized
liabilities | Gross amounts
offset on the
Consolidated
Balance Sheet(1) | Net amounts of
liabilities included on
the Consolidated
Balance Sheet | Amounts
not offset on the
Consolidated Balance
Sheet but eligible for
offsetting upon
counterparty default(2) | Net
amounts(3) | In millions of dollars | Gross amounts
of recognized
liabilities | Gross amounts
offset on the
Consolidated
Balance Sheet(1) | Net amounts of
liabilities included on
the Consolidated
Balance Sheet | Amounts
not offset on the
Consolidated Balance
Sheet but eligible for
offsetting upon
counterparty default(2) | Net
amounts(3) |
| Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | $ | 305,597 | | $ | 131,342 | | $ | 174,255 | | $ | 85,184 | | $ | 89,071 | | Securities sold under agreements to repurchase | $ | 296,218 | | $ | 112,391 | | $ | 183,827 | | $ | 71,635 | | $ | 112,192 | |
| Deposits received for securities loaned | Deposits received for securities loaned | 33,029 | | 15,999 | | 17,030 | | 2,868 | | 14,162 | | Deposits received for securities loaned | 33,269 | | 14,652 | | 18,617 | | 2,542 | | 16,075 | |
| Total | Total | $ | 338,626 | | $ | 147,341 | | $ | 191,285 | | $ | 88,052 | | $ | 103,233 | | Total | $ | 329,487 | | $ | 127,043 | | $ | 202,444 | | $ | 74,177 | | $ | 128,267 | |
(1)Includes financial instruments subject to enforceable master netting agreements that are permitted to be offset under ASC 210-20-45.
(2)Includes financial instruments subject to enforceable master netting agreements that are not permitted to be offset under ASC 210-20-45, but would be eligible for offsetting to the extent that an event of default has occurred and a legal opinion supporting enforceability of the offsetting right has been obtained.
(3)Remaining exposures continue to be secured by financial collateral, but the Company may not have sought or been able to obtain a legal opinion evidencing enforceability of the offsetting right.
The following tables present the gross amounts of liabilities associated with repurchase agreements and securities lending agreements by remaining contractual maturity:
| | | As of September 30, 2022 | | As of September 30, 2023 |
| In millions of dollars | In millions of dollars | Open and overnight | Up to 30 days | 31–90 days | Greater than 90 days | Total | In millions of dollars | Open and overnight | Up to 30 days | 31–90 days | Greater than 90 days | Total |
| Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | $ | 138,287 | | $ | 77,589 | | $ | 27,855 | | $ | 42,528 | | $ | 286,259 | | Securities sold under agreements to repurchase | $ | 248,681 | | $ | 142,516 | | $ | 29,711 | | $ | 56,727 | | $ | 477,635 | |
| Deposits received for securities loaned | Deposits received for securities loaned | 19,746 | | 325 | | 458 | | 5,485 | | 26,014 | | Deposits received for securities loaned | 20,634 | | 242 | | 556 | | 7,933 | | 29,365 | |
| Total | Total | $ | 158,033 | | $ | 77,914 | | $ | 28,313 | | $ | 48,013 | | $ | 312,273 | | Total | $ | 269,315 | | $ | 142,758 | | $ | 30,267 | | $ | 64,660 | | $ | 507,000 | |
| | | As of December 31, 2021 | | As of December 31, 2022 |
| In millions of dollars | In millions of dollars | Open and overnight | Up to 30 days | 31–90 days | Greater than 90 days | Total | In millions of dollars | Open and overnight | Up to 30 days | 31–90 days | Greater than 90 days | Total |
| Securities sold under agreements to repurchase | Securities sold under agreements to repurchase | $ | 127,679 | | $ | 93,257 | | $ | 32,908 | | $ | 51,753 | | $ | 305,597 | | Securities sold under agreements to repurchase | $ | 138,710 | | $ | 86,819 | | $ | 25,119 | | $ | 45,570 | | $ | 296,218 | |
| Deposits received for securities loaned | Deposits received for securities loaned | 23,387 | | 6 | | 1,392 | | 8,244 | | 33,029 | | Deposits received for securities loaned | 25,388 | | 267 | | 2,121 | | 5,493 | | 33,269 | |
| Total | Total | $ | 151,066 | | $ | 93,263 | | $ | 34,300 | | $ | 59,997 | | $ | 338,626 | | Total | $ | 164,098 | | $ | 87,086 | | $ | 27,240 | | $ | 51,063 | | $ | 329,487 | |
The following tables present the gross amounts of liabilities associated with repurchase agreements and securities lending agreements by class of underlying collateral:
| | | As of September 30, 2022 | | As of September 30, 2023 |
| In millions of dollars | In millions of dollars | Repurchase agreements | Securities lending agreements | Total | In millions of dollars | Repurchase agreements | Securities lending agreements | Total |
| U.S. Treasury and federal agency securities | U.S. Treasury and federal agency securities | $ | 105,681 | | $ | 119 | | $ | 105,800 | | U.S. Treasury and federal agency securities | $ | 191,944 | | $ | — | | $ | 191,944 | |
| State and municipal securities | State and municipal securities | 1,141 | | — | | 1,141 | | State and municipal securities | 1,434 | | 2 | | 1,436 | |
| Foreign government securities | Foreign government securities | 120,050 | | 110 | | 120,160 | | Foreign government securities | 161,785 | | 626 | | 162,411 | |
| Corporate bonds | Corporate bonds | 15,176 | | 67 | | 15,243 | | Corporate bonds | 15,761 | | 23 | | 15,784 | |
| Equity securities | Equity securities | 10,263 | | 25,541 | | 35,804 | | Equity securities | 15,478 | | 28,228 | | 43,706 | |
| Mortgage-backed securities | Mortgage-backed securities | 24,007 | | — | | 24,007 | | Mortgage-backed securities | 67,390 | | — | | 67,390 | |
| Asset-backed securities | 1,749 | | — | | 1,749 | | |
| | Other | Other | 8,192 | | 177 | | 8,369 | | Other | 23,843 | | 486 | | 24,329 | |
| Total | Total | $ | 286,259 | | $ | 26,014 | | $ | 312,273 | | Total | $ | 477,635 | | $ | 29,365 | | $ | 507,000 | |
| | | As of December 31, 2021 | | As of December 31, 2022 |
| In millions of dollars | In millions of dollars | Repurchase agreements | Securities lending agreements | Total | In millions of dollars | Repurchase agreements | Securities lending agreements | Total |
| U.S. Treasury and federal agency securities | U.S. Treasury and federal agency securities | $ | 85,861 | | $ | 90 | | $ | 85,951 | | U.S. Treasury and federal agency securities | $ | 99,979 | | $ | 106 | | $ | 100,085 | |
| State and municipal securities | State and municipal securities | 1,053 | | — | | 1,053 | | State and municipal securities | 1,911 | | — | | 1,911 | |
| Foreign government securities | Foreign government securities | 133,352 | | 212 | | 133,564 | | Foreign government securities | 123,826 | | 13 | | 123,839 | |
| Corporate bonds | Corporate bonds | 20,398 | | 152 | | 20,550 | | Corporate bonds | 14,308 | | 45 | | 14,353 | |
| Equity securities | Equity securities | 25,653 | | 32,517 | | 58,170 | | Equity securities | 9,749 | | 33,096 | | 42,845 | |
| Mortgage-backed securities | Mortgage-backed securities | 33,573 | | — | | 33,573 | | Mortgage-backed securities | 36,225 | | — | | 36,225 | |
| Asset-backed securities | Asset-backed securities | 1,681 | | — | | 1,681 | | Asset-backed securities | 1,755 | | — | | 1,755 | |
| Other | Other | 4,026 | | 58 | | 4,084 | | Other | 8,465 | | 9 | | 8,474 | |
| Total | Total | $ | 305,597 | | $ | 33,029 | | $ | 338,626 | | Total | $ | 296,218 | | $ | 33,269 | | $ | 329,487 | |
11. BROKERAGE RECEIVABLES AND BROKERAGE PAYABLES
The Company has receivables and payables for financial instruments sold to and purchased from brokers, dealers and customers, which arise in the ordinary course of business.
For additional information on these receivables and payables, see Note 12 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
Brokerage receivables and Brokerage payables consisted of the following:
| | In millions of dollars | In millions of dollars | September 30,
2022 | December 31, 2021 | In millions of dollars | September 30,
2023 | December 31, 2022 |
| Receivables from customers | Receivables from customers | $ | 26,670 | | $ | 26,403 | | Receivables from customers | $ | 22,854 | | $ | 15,462 | |
| Receivables from brokers, dealers and clearing organizations | Receivables from brokers, dealers and clearing organizations | 53,026 | | 27,937 | | Receivables from brokers, dealers and clearing organizations | 43,340 | | 38,730 | |
Total brokerage receivables(1) | Total brokerage receivables(1) | $ | 79,696 | | $ | 54,340 | | Total brokerage receivables(1) | $ | 66,194 | | $ | 54,192 | |
| Payables to customers | Payables to customers | $ | 69,531 | | $ | 52,158 | | Payables to customers | $ | 53,441 | | $ | 55,747 | |
| Payables to brokers, dealers and clearing organizations | Payables to brokers, dealers and clearing organizations | 18,310 | | 9,272 | | Payables to brokers, dealers and clearing organizations | 21,635 | | 13,471 | |
Total brokerage payables(1) | Total brokerage payables(1) | $ | 87,841 | | $ | 61,430 | | Total brokerage payables(1) | $ | 75,076 | | $ | 69,218 | |
(1) Includes brokerage receivables and payables recorded by Citi broker-dealer entities that are accounted for in accordance with the AICPA Accounting Guide for Brokers and Dealers in Securities as codified in ASC 940-320.
12. INVESTMENTS
For additional information regarding Citi’s investment portfolios, including evaluating investments for impairment, see Note 13 to the Consolidated Financial Statements
in Citi’s 20212022 Form 10-K.
The following table presents Citi’s investments by category:
| | In millions of dollars | In millions of dollars | September 30,
2022 | December 31, 2021 | | In millions of dollars | September 30,
2023 | December 31, 2022 |
| In millions of dollars | September 30,
2023 | December 31, 2022 | |
| Debt securities available-for-sale (AFS) | Debt securities available-for-sale (AFS) | $ | 232,143 | | $ | 288,522 | | | Debt securities available-for-sale (AFS) | $ | 241,783 | | $ | 249,679 | |
Debt securities held-to-maturity (HTM)(1) | Debt securities held-to-maturity (HTM)(1) | 267,864 | | 216,963 | | | Debt securities held-to-maturity (HTM)(1) | 259,456 | | 268,863 | |
Marketable equity securities carried at fair value(2) | Marketable equity securities carried at fair value(2) | 431 | | 543 | | | Marketable equity securities carried at fair value(2) | 283 | | 429 | |
Non-marketable equity securities carried at fair value(2)(5) | Non-marketable equity securities carried at fair value(2)(5) | 419 | | 489 | | | Non-marketable equity securities carried at fair value(2)(5) | 455 | | 466 | |
Non-marketable equity securities measured using the measurement alternative(3) | Non-marketable equity securities measured using the measurement alternative(3) | 1,690 | | 1,413 | | | Non-marketable equity securities measured using the measurement alternative(3) | 1,621 | | 1,676 | |
Non-marketable equity securities carried at cost(4) | Non-marketable equity securities carried at cost(4) | 5,469 | | 4,892 | | | Non-marketable equity securities carried at cost(4) | 5,400 | | 5,469 | |
Total investments | Total investments | $ | 508,016 | | $ | 512,822 | | | Total investments | $ | 508,998 | | $ | 526,582 | |
(1)Carried at adjusted amortized cost basis, net of any ACL.
(2)Unrealized gains and losses are recognized in earnings.
(3)Impairment losses and adjustments to the carrying value as a result of observable price changes are recognized in earnings. See “Non-Marketable Equity Securities Not Carried at Fair Value” below.
(4) Represents shares issued by the Federal Reserve Bank, Federal Home Loan Banks and certain exchanges of which Citigroup is a member.
(5) Includes $26$24 million and $145$27 million of investments in funds for which the fair values are estimated using the net asset value of the Company’s ownership interest in the funds at September 30, 20222023 and December 31, 2021,2022, respectively.
(6) Not included in the balances above is approximately $2 billion of accrued interest receivable at September 30, 2023 and December 31, 2022, which is included in Other assets on the Consolidated Balance Sheet. The Company does not recognize an allowance for credit losses on accrued interest receivable for AFS and HTM debt securities, consistent with its non-accrual policy, which results in timely write-off of accrued interest. The Company did not reverse through interest income any accrued interest receivables for the quarters ended September 30, 2023 and 2022.
The following table presents interest and dividend income on investments:
| | | Three Months Ended September 30, | Nine Months Ended September 30, | | Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | In millions of dollars | 2022 | 2021 | 2022 | 2021 | In millions of dollars | 2023 | 2022 | 2023 | 2022 |
| Taxable interest | Taxable interest | $ | 2,714 | | $ | 1,777 | | $ | 7,001 | | $ | 5,152 | | Taxable interest | $ | 4,547 | | $ | 2,714 | | $ | 12,831 | | $ | 7,001 | |
| Interest exempt from U.S. federal income tax | Interest exempt from U.S. federal income tax | 220 | | 73 | | 263 | | 196 | | Interest exempt from U.S. federal income tax | 83 | | 220 | | 252 | | 263 | |
| Dividend income | Dividend income | 59 | | 35 | | 149 | | 107 | | Dividend income | 89 | | 59 | | 231 | | 149 | |
| Total interest and dividend income on investments | Total interest and dividend income on investments | $ | 2,993 | | $ | 1,885 | | $ | 7,413 | | $ | 5,455 | | Total interest and dividend income on investments | $ | 4,719 | | $ | 2,993 | | $ | 13,314 | | $ | 7,413 | |
The following table presents realized gains and losses on the sales of investments, which exclude impairment losses:
| | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | 2022 | 2021 | 2022 | 2021 |
| Gross realized investment gains | $ | 102 | | $ | 142 | | $ | 282 | | $ | 757 | |
| Gross realized investment losses | (50) | | (25) | | (208) | | (102) | |
| Net realized gains (losses) on sales of investments | $ | 52 | | $ | 117 | | $ | 74 | | $ | 655 | |
| | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | 2023 | 2022 | 2023 | 2022 |
| Gross realized investment gains | $ | 83 | | $ | 102 | | $ | 262 | | $ | 282 | |
| Gross realized investment losses | (53) | | (50) | | (111) | | (208) | |
| Net realized gains on sales of investments | $ | 30 | | $ | 52 | | $ | 151 | | $ | 74 | |
Debt Securities Available-for-Sale
The amortized cost and fair value of AFS debt securities were as follows:
| | | | September 30, 2022 | December 31, 2021 | | September 30, 2023 | December 31, 2022 |
| In millions of dollars | In millions of dollars | Amortized
cost | Gross
unrealized
gains | Gross
unrealized
losses | Allowance for credit losses | Fair
value | Amortized
cost | Gross
unrealized
gains | Gross
unrealized
losses | Allowance for credit losses | Fair
value | In millions of dollars | Amortized
cost | Gross
unrealized
gains | Gross
unrealized
losses | Allowance for credit losses | Fair
value | Amortized
cost | Gross
unrealized
gains | Gross
unrealized
losses | Allowance for credit losses | Fair
value |
| Debt securities AFS | Debt securities AFS | | | | | | | | Debt securities AFS | | | | | | | |
Mortgage-backed securities(1) | Mortgage-backed securities(1) | | | | | | | | Mortgage-backed securities(1) | | | | | | | |
U.S. government-sponsored agency guaranteed(2)(3) | U.S. government-sponsored agency guaranteed(2)(3) | $ | 12,214 | | $ | 7 | | $ | 890 | | $ | — | | $ | 11,331 | | $ | 33,064 | | $ | 453 | | $ | 301 | | $ | — | | $ | 33,216 | | U.S. government-sponsored agency guaranteed(2)(3) | $ | 20,750 | | $ | 23 | | $ | 958 | | $ | — | | $ | 19,815 | | $ | 12,009 | | $ | 8 | | $ | 755 | | $ | — | | $ | 11,262 | |
| | Residential | Residential | 479 | | — | | 3 | | — | | 476 | | 380 | | 1 | | 1 | | — | | 380 | | Residential | 310 | | — | | 3 | | — | | 307 | | 488 | | — | | 3 | | — | | 485 | |
| Commercial | Commercial | 4 | | — | | — | | — | | 4 | | 25 | | — | | — | | — | | 25 | | Commercial | 1 | | — | | — | | — | | 1 | | 2 | | — | | — | | — | | 2 | |
| Total mortgage-backed securities | Total mortgage-backed securities | $ | 12,697 | | $ | 7 | | $ | 893 | | $ | — | | $ | 11,811 | | $ | 33,469 | | $ | 454 | | $ | 302 | | $ | — | | $ | 33,621 | | Total mortgage-backed securities | $ | 21,061 | | $ | 23 | | $ | 961 | | $ | — | | $ | 20,123 | | $ | 12,499 | | $ | 8 | | $ | 758 | | $ | — | | $ | 11,749 | |
| U.S. Treasury and federal agency securities | U.S. Treasury and federal agency securities | | | | | | | U.S. Treasury and federal agency securities | | | | | | |
| U.S. Treasury | U.S. Treasury | $ | 92,595 | | $ | 41 | | $ | 2,973 | | $ | — | | $ | 89,663 | | $ | 122,669 | | $ | 615 | | $ | 844 | | $ | — | | $ | 122,440 | | U.S. Treasury | $ | 83,029 | | $ | 21 | | $ | 1,782 | | $ | — | | $ | 81,268 | | $ | 94,732 | | $ | 50 | | $ | 2,492 | | $ | — | | $ | 92,290 | |
| Agency obligations | Agency obligations | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | Agency obligations | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
| Total U.S. Treasury and federal agency securities | Total U.S. Treasury and federal agency securities | $ | 92,595 | | $ | 41 | | $ | 2,973 | | $ | — | | $ | 89,663 | | $ | 122,669 | | $ | 615 | | $ | 844 | | $ | — | | $ | 122,440 | | Total U.S. Treasury and federal agency securities | $ | 83,029 | | $ | 21 | | $ | 1,782 | | $ | — | | $ | 81,268 | | $ | 94,732 | | $ | 50 | | $ | 2,492 | | $ | — | | $ | 92,290 | |
State and municipal(3) | State and municipal(3) | $ | 2,368 | | $ | 8 | | $ | 223 | | $ | — | | $ | 2,153 | | $ | 2,643 | | $ | 79 | | $ | 101 | | $ | — | | $ | 2,621 | | State and municipal(3) | $ | 2,204 | | $ | 6 | | $ | 179 | | $ | — | | $ | 2,031 | | $ | 2,363 | | $ | 19 | | $ | 159 | | $ | — | | $ | 2,223 | |
| Foreign government | Foreign government | 121,815 | | 400 | | 3,244 | | — | | 118,971 | | 119,426 | | 337 | | 1,023 | | — | | 118,740 | | Foreign government | 127,245 | | 234 | | 2,083 | | — | | 125,396 | | 135,648 | | 569 | | 2,940 | | — | | 133,277 | |
| Corporate | Corporate | 5,773 | | 37 | | 296 | | 1 | | 5,513 | | 5,972 | | 33 | | 77 | | 8 | | 5,920 | | Corporate | 5,653 | | 13 | | 268 | | 5 | | 5,393 | | 5,146 | | 19 | | 246 | | 3 | | 4,916 | |
Asset-backed securities(1) | Asset-backed securities(1) | 277 | | 1 | | 2 | | — | | 276 | | 304 | | — | | 1 | | — | | 303 | | Asset-backed securities(1) | 681 | | 3 | | 2 | | — | | 682 | | 1,022 | | 12 | | 4 | | — | | 1,030 | |
| Other debt securities | Other debt securities | 3,764 | | — | | 8 | | — | | 3,756 | | 4,880 | | 1 | | 4 | | — | | 4,877 | | Other debt securities | 6,890 | | 2 | | 2 | | — | | 6,890 | | 4,198 | | 1 | | 5 | | — | | 4,194 | |
| Total debt securities AFS | Total debt securities AFS | $ | 239,289 | | $ | 494 | | $ | 7,639 | | $ | 1 | | $ | 232,143 | | $ | 289,363 | | $ | 1,519 | | $ | 2,352 | | $ | 8 | | $ | 288,522 | | Total debt securities AFS | $ | 246,763 | | $ | 302 | | $ | 5,277 | | $ | 5 | | $ | 241,783 | | $ | 255,608 | | $ | 678 | | $ | 6,604 | | $ | 3 | | $ | 249,679 | |
(1)The Company invests in mortgage- and asset-backed securities, which are typically issued by VIEs through securitization transactions. The Company’s maximum exposure to loss from these VIEs is equal to the carrying amount of the securities, which is reflected in the table above. See Note 1820 for mortgage- and asset-backed securitizations in which the Company has other involvement.
(2)In June 2022, CitibankJanuary 2023, Citi adopted ASU 2022-01. Upon adoption, Citi transferred $21.5$3.3 billion of agency residential mortgage-backed securities from HTM classification to AFS classification to HTM classification in accordance with ASC 320.as allowed under the ASU. At the time of transfer, the securities were in an unrealized lossgain position of $2.3 billion. The loss amounts will remain$0.1 billion, which was recorded in AOCI and will be amortized overupon transfer. See Note 1 to the remaining life of the securities.Consolidated Financial Statements in Citi’s 2022 Form 10-K.
(3) InAmortized cost includes unallocated portfolio layer cumulative basis adjustments of $(0.5) billion as of September 2022, Citibank transferred $16530, 2023. Gross unrealized gains and gross unrealized losses on mortgage-backed securities excluding the effect of unallocated portfolio layer cumulative basis adjustments were $2 million and $1.5 billion, respectively, as of municipal bonds from AFS classification to HTM classification in accordance with ASC 320. At the time of transfer, the bonds were in an unrealized loss position of $12 million. The loss amounts will remain in September 30, 2023.
AOCI and will be amortized over the remaining life of the securities.
The following table showspresents the fair value of AFS debt securities that have been in an unrealized loss position:
| | | | | | | | | | | | | | | | | | | | |
| | Less than 12 months | 12 months or longer | Total |
| In millions of dollars | Fair
value | Gross
unrealized
losses | Fair
value | Gross
unrealized
losses | Fair
value | Gross
unrealized
losses |
| September 30, 2022 | | | | | | |
| Debt securities AFS | | | | | | |
| Mortgage-backed securities | | | | | | |
| U.S. government-sponsored agency guaranteed | $ | 9,471 | | $ | 615 | | $ | 1,922 | | $ | 275 | | $ | 11,393 | | $ | 890 | |
| | | | | | |
| Residential | 46 | | 3 | | — | | — | | 46 | | 3 | |
| Commercial | 3 | | — | | 1 | | — | | 4 | | — | |
| Total mortgage-backed securities | $ | 9,520 | | $ | 618 | | $ | 1,923 | | $ | 275 | | $ | 11,443 | | $ | 893 | |
| | | | | | |
| U.S. Treasury | $ | 44,899 | | $ | 1,300 | | $ | 33,305 | | $ | 1,673 | | $ | 78,204 | | $ | 2,973 | |
| | | | | | |
| | | | | | |
| State and municipal | 488 | | 40 | | 1,308 | | 183 | | 1,796 | | 223 | |
| Foreign government | 79,279 | | 2,514 | | 13,266 | | 730 | | 92,545 | | 3,244 | |
| Corporate | 4,068 | | 270 | | 394 | | 26 | | 4,462 | | 296 | |
| Asset-backed securities | 159 | | 2 | | — | | — | | 159 | | 2 | |
| Other debt securities | 2,271 | | 8 | | — | | — | | 2,271 | | 8 | |
| Total debt securities AFS | $ | 140,684 | | $ | 4,752 | | $ | 50,196 | | $ | 2,887 | | $ | 190,880 | | $ | 7,639 | |
| December 31, 2021 | | | | | | |
| Debt securities AFS | | | | | | |
| Mortgage-backed securities | | | | | | |
| U.S. government-sponsored agency guaranteed | $ | 17,039 | | $ | 270 | | $ | 698 | | $ | 31 | | $ | 17,737 | | $ | 301 | |
| | | | | | |
| Non-U.S. residential | 96 | | 1 | | 1 | | — | | 97 | | 1 | |
| Commercial | — | | — | | — | | — | | — | | — | |
| Total mortgage-backed securities | $ | 17,135 | | $ | 271 | | $ | 699 | | $ | 31 | | $ | 17,834 | | $ | 302 | |
| U.S. Treasury and federal agency securities | | | | | | |
| U.S. Treasury | $ | 56,448 | | $ | 713 | | $ | 6,310 | | $ | 131 | | $ | 62,758 | | $ | 844 | |
| Agency obligations | — | | — | | — | | — | | — | | — | |
| Total U.S. Treasury and federal agency securities | $ | 56,448 | | $ | 713 | | $ | 6,310 | | $ | 131 | | $ | 62,758 | | $ | 844 | |
| State and municipal | $ | 229 | | $ | 3 | | $ | 874 | | $ | 98 | | $ | 1,103 | | $ | 101 | |
| Foreign government | 64,319 | | 826 | | 9,924 | | 197 | | 74,243 | | 1,023 | |
| Corporate | 2,655 | | 77 | | 22 | | — | | 2,677 | | 77 | |
| Asset-backed securities | 108 | | 1 | | — | | — | | 108 | | 1 | |
| Other debt securities | 3,439 | | 4 | | — | | — | | 3,439 | | 4 | |
| Total debt securities AFS | $ | 144,333 | | $ | 1,895 | | $ | 17,829 | | $ | 457 | | $ | 162,162 | | $ | 2,352 | |
| | | | | | | | | | | | | | | | | | | | |
| | Less than 12 months | 12 months or longer | Total |
| In millions of dollars | Fair
value | Gross
unrealized
losses | Fair
value | Gross
unrealized
losses | Fair
value | Gross
unrealized
losses |
| September 30, 2023 | | | | | | |
| Debt securities AFS | | | | | | |
| Mortgage-backed securities | | | | | | |
| U.S. government-sponsored agency guaranteed | $ | 7,751 | | $ | 154 | | $ | 8,945 | | $ | 804 | | $ | 16,696 | | $ | 958 | |
| | | | | | |
| Residential | 298 | | 3 | | 4 | | — | | 302 | | 3 | |
| Commercial | — | | — | | — | | — | | — | | — | |
| Total mortgage-backed securities | $ | 8,049 | | $ | 157 | | $ | 8,949 | | $ | 804 | | $ | 16,998 | | $ | 961 | |
| U.S. Treasury and federal agency securities | | | | | | |
| U.S. Treasury | $ | 23,045 | | $ | 705 | | $ | 48,721 | | $ | 1,077 | | $ | 71,766 | | $ | 1,782 | |
| | | | | | |
| Total U.S. Treasury and federal agency securities | $ | 23,045 | | $ | 705 | | $ | 48,721 | | $ | 1,077 | | $ | 71,766 | | $ | 1,782 | |
| State and municipal | $ | 751 | | $ | 39 | | $ | 864 | | $ | 140 | | $ | 1,615 | | $ | 179 | |
| Foreign government | 73,044 | | 1,425 | | 19,780 | | 658 | | 92,824 | | 2,083 | |
| Corporate | 2,858 | | 213 | | 1,583 | | 55 | | 4,441 | | 268 | |
| Asset-backed securities | 214 | | 2 | | — | | — | | 214 | | 2 | |
| Other debt securities | 1,359 | | 2 | | — | | — | | 1,359 | | 2 | |
| Total debt securities AFS | $ | 109,320 | | $ | 2,543 | | $ | 79,897 | | $ | 2,734 | | $ | 189,217 | | $ | 5,277 | |
| December 31, 2022 | | | | | | |
| Debt securities AFS | | | | | | |
| Mortgage-backed securities | | | | | | |
| U.S. government-sponsored agency guaranteed | $ | 7,908 | | $ | 412 | | $ | 3,290 | | $ | 343 | | $ | 11,198 | | $ | 755 | |
| | | | | | |
| Residential | 158 | | 3 | | 1 | | — | | 159 | | 3 | |
| Commercial | 1 | | — | | 1 | | — | | 2 | | — | |
| Total mortgage-backed securities | $ | 8,067 | | $ | 415 | | $ | 3,292 | | $ | 343 | | $ | 11,359 | | $ | 758 | |
| U.S. Treasury and federal agency securities | | | | | | |
| U.S. Treasury | $ | 40,701 | | $ | 1,001 | | $ | 34,692 | | $ | 1,491 | | $ | 75,393 | | $ | 2,492 | |
| Agency obligations | — | | — | | — | | — | | — | | — | |
| Total U.S. Treasury and federal agency securities | $ | 40,701 | | $ | 1,001 | | $ | 34,692 | | $ | 1,491 | | $ | 75,393 | | $ | 2,492 | |
| State and municipal | $ | 896 | | $ | 31 | | $ | 707 | | $ | 128 | | $ | 1,603 | | $ | 159 | |
| Foreign government | 82,900 | | 2,332 | | 14,220 | | 608 | | 97,120 | | 2,940 | |
| Corporate | 3,082 | | 209 | | 784 | | 37 | | 3,866 | | 246 | |
| Asset-backed securities | 708 | | 4 | | — | | — | | 708 | | 4 | |
| Other debt securities | 2,213 | | 5 | | — | | — | | 2,213 | | 5 | |
| Total debt securities AFS | $ | 138,567 | | $ | 3,997 | | $ | 53,695 | | $ | 2,607 | | $ | 192,262 | | $ | 6,604 | |
The following table presents the amortized cost and fair value of AFS debt securities by contractual maturity dates:
| | | | | September 30, 2022 | December 31, 2021 | | September 30, 2023 | December 31, 2022 |
| In millions of dollars | In millions of dollars | Amortized
cost | Fair
value | Amortized
cost | Fair
value | In millions of dollars | Amortized
cost | Fair
value | Amortized
cost | Fair
value |
Mortgage-backed securities(1) | Mortgage-backed securities(1) | | | | Mortgage-backed securities(1) | | | |
| Due within 1 year | Due within 1 year | $ | 42 | | $ | 42 | | $ | 188 | | $ | 189 | | Due within 1 year | $ | 10 | | $ | 10 | | $ | 42 | | $ | 44 | |
| After 1 but within 5 years | After 1 but within 5 years | 514 | | 502 | | 211 | | 211 | | After 1 but within 5 years | 364 | | 354 | | 523 | | 513 | |
| After 5 but within 10 years | After 5 but within 10 years | 365 | | 337 | | 523 | | 559 | | After 5 but within 10 years | 570 | | 527 | | 468 | | 440 | |
| After 10 years | After 10 years | 11,776 | | 10,930 | | 32,547 | | 32,662 | | After 10 years | 20,659 | | 19,232 | | 11,466 | | 10,752 | |
| Total | $ | 12,697 | | $ | 11,811 | | $ | 33,469 | | $ | 33,621 | | |
Total(2) | | Total(2) | $ | 21,603 | | $ | 20,123 | | $ | 12,499 | | $ | 11,749 | |
| U.S. Treasury and federal agency securities | U.S. Treasury and federal agency securities | | | | U.S. Treasury and federal agency securities | | | | |
| Due within 1 year | Due within 1 year | $ | 16,839 | | $ | 16,737 | | $ | 34,321 | | $ | 34,448 | | Due within 1 year | $ | 35,939 | | $ | 35,588 | | $ | 25,935 | | $ | 25,829 | |
| After 1 but within 5 years | After 1 but within 5 years | 75,414 | | 72,631 | | 87,987 | | 87,633 | | After 1 but within 5 years | 46,561 | | 45,219 | | 68,455 | | 66,166 | |
| After 5 but within 10 years | After 5 but within 10 years | 342 | | 295 | | 361 | | 359 | | After 5 but within 10 years | 529 | | 461 | | 342 | | 295 | |
| After 10 years | After 10 years | — | | — | | — | | — | | After 10 years | — | | — | | — | | — | |
| Total | Total | $ | 92,595 | | $ | 89,663 | | $ | 122,669 | | $ | 122,440 | | Total | $ | 83,029 | | $ | 81,268 | | $ | 94,732 | | $ | 92,290 | |
| State and municipal | State and municipal | | | | State and municipal | | | |
| Due within 1 year | Due within 1 year | $ | 18 | | $ | 19 | | $ | 40 | | $ | 40 | | Due within 1 year | $ | 13 | | $ | 12 | | $ | 19 | | $ | 18 | |
| After 1 but within 5 years | After 1 but within 5 years | 101 | | 99 | | 121 | | 124 | | After 1 but within 5 years | 106 | | 103 | | 94 | | 92 | |
| After 5 but within 10 years | After 5 but within 10 years | 263 | | 247 | | 156 | | 161 | | After 5 but within 10 years | 326 | | 310 | | 305 | | 302 | |
| After 10 years | After 10 years | 1,986 | | 1,788 | | 2,326 | | 2,296 | | After 10 years | 1,759 | | 1,606 | | 1,945 | | 1,811 | |
| Total | Total | $ | 2,368 | | $ | 2,153 | | $ | 2,643 | | $ | 2,621 | | Total | $ | 2,204 | | $ | 2,031 | | $ | 2,363 | | $ | 2,223 | |
| Foreign government | Foreign government | | | | Foreign government | | | |
| Due within 1 year | Due within 1 year | $ | 55,925 | | $ | 55,735 | | $ | 49,263 | | $ | 49,223 | | Due within 1 year | $ | 60,383 | | $ | 59,996 | | $ | 64,795 | | $ | 64,479 | |
| After 1 but within 5 years | After 1 but within 5 years | 62,444 | | 60,195 | | 64,555 | | 63,961 | | After 1 but within 5 years | 60,881 | | 59,656 | | 67,935 | | 66,150 | |
| After 5 but within 10 years | After 5 but within 10 years | 2,564 | | 2,239 | | 3,736 | | 3,656 | | After 5 but within 10 years | 5,490 | | 5,326 | | 2,491 | | 2,250 | |
| After 10 years | After 10 years | 882 | | 802 | | 1,872 | | 1,900 | | After 10 years | 491 | | 418 | | 427 | | 398 | |
| Total | Total | $ | 121,815 | | $ | 118,971 | | $ | 119,426 | | $ | 118,740 | | Total | $ | 127,245 | | $ | 125,396 | | $ | 135,648 | | $ | 133,277 | |
All other(2)(3) | All other(2)(3) | | | | All other(2)(3) | | | | |
| Due within 1 year | Due within 1 year | $ | 4,396 | | $ | 4,378 | | $ | 5,175 | | $ | 5,180 | | Due within 1 year | $ | 6,169 | | $ | 6,161 | | $ | 4,452 | | $ | 4,441 | |
| After 1 but within 5 years | After 1 but within 5 years | 4,592 | | 4,420 | | 5,177 | | 5,149 | | After 1 but within 5 years | 6,172 | | 5,962 | | 5,162 | | 4,988 | |
| After 5 but within 10 years | After 5 but within 10 years | 770 | | 743 | | 750 | | 750 | | After 5 but within 10 years | 818 | | 813 | | 695 | | 693 | |
| After 10 years | After 10 years | 56 | | 4 | | 54 | | 21 | | After 10 years | 65 | | 29 | | 57 | | 18 | |
| Total | Total | $ | 9,814 | | $ | 9,545 | | $ | 11,156 | | $ | 11,100 | | Total | $ | 13,224 | | $ | 12,965 | | $ | 10,366 | | $ | 10,140 | |
Total debt securities AFS | Total debt securities AFS | $ | 239,289 | | $ | 232,143 | | $ | 289,363 | | $ | 288,522 | | Total debt securities AFS | $ | 247,305 | | $ | 241,783 | | $ | 255,608 | | $ | 249,679 | |
(1)Includes mortgage-backed securities of U.S. government-sponsored agencies. The Company invests in mortgage- and asset-backed securities, which are typically issued by VIEs through securitization transactions. See Note 20 for more information about mortgage- and asset-backed securitizations in which the Company has other involvement.
(2)Amortized cost excludes unallocated portfolio layer cumulative basis adjustments of $(0.5) billion as of September 30, 2023.
(3)Includes corporate, asset-backed and other debt securities.
Debt Securities Held-to-Maturity
The carrying value and fair value of debt securities HTM were as follows:
| | In millions of dollars | In millions of dollars | | Amortized cost, net(1) | Gross
unrealized
gains | Gross
unrealized
losses | Fair
value | In millions of dollars | | Amortized cost, net(1) | Gross
unrealized
gains | Gross
unrealized
losses | Fair
value |
| September 30, 2022 | | | | |
| September 30, 2023 | | September 30, 2023 | | | |
| Debt securities HTM | Debt securities HTM | | | | Debt securities HTM | | | |
Mortgage-backed securities(2) | Mortgage-backed securities(2) | | | | Mortgage-backed securities(2) | | | |
U.S. government-sponsored agency guaranteed(3) | U.S. government-sponsored agency guaranteed(3) | | $ | 89,020 | | $ | 2 | | $ | 11,160 | | $ | 77,862 | | U.S. government-sponsored agency guaranteed(3) | | $ | 81,442 | | $ | — | | $ | 13,354 | | $ | 68,088 | |
| | Non-U.S. residential | Non-U.S. residential | | 467 | | — | | — | | 467 | | Non-U.S. residential | | 330 | | — | | — | | 330 | |
| Commercial | Commercial | | 1,100 | | 4 | | 1 | | 1,103 | | Commercial | | 1,133 | | — | | 169 | | 964 | |
| Total mortgage-backed securities | Total mortgage-backed securities | | $ | 90,587 | | $ | 6 | | $ | 11,161 | | $ | 79,432 | | Total mortgage-backed securities | | $ | 82,905 | | $ | — | | $ | 13,523 | | $ | 69,382 | |
| U.S. Treasury securities | U.S. Treasury securities | | $ | 134,969 | | $ | — | | $ | 14,672 | | $ | 120,297 | | U.S. Treasury securities | | $ | 134,934 | | $ | — | | $ | 13,413 | | $ | 121,521 | |
State and municipal(4) | | 9,215 | | 18 | | 1,111 | | 8,122 | | |
| State and municipal | | State and municipal | | 9,103 | | 9 | | 1,188 | | 7,924 | |
| Foreign government | Foreign government | | 2,014 | | — | | 115 | | 1,899 | | Foreign government | | 2,314 | | — | | 89 | | 2,225 | |
Asset-backed securities(2) | Asset-backed securities(2) | | 31,079 | | 4 | | 1,026 | | 30,057 | | Asset-backed securities(2) | | 30,200 | | 1 | | 251 | | 29,950 | |
| | Total debt securities HTM, net | Total debt securities HTM, net | | $ | 267,864 | | $ | 28 | | $ | 28,085 | | $ | 239,807 | | Total debt securities HTM, net | | $ | 259,456 | | $ | 10 | | $ | 28,464 | | $ | 231,002 | |
| December 31, 2021 | | | | |
| December 31, 2022 | | December 31, 2022 | | | |
| Debt securities HTM | Debt securities HTM | | | | | Debt securities HTM | | | | |
Mortgage-backed securities(2) | Mortgage-backed securities(2) | | | | Mortgage-backed securities(2) | | | |
| U.S. government-sponsored agency guaranteed | U.S. government-sponsored agency guaranteed | | $ | 63,885 | | $ | 1,076 | | $ | 925 | | $ | 64,036 | | U.S. government-sponsored agency guaranteed | | $ | 90,063 | | $ | 58 | | $ | 10,033 | | $ | 80,088 | |
| | Non-U.S. residential | Non-U.S. residential | | 736 | | 3 | | — | | 739 | | Non-U.S. residential | | 445 | | — | | — | | 445 | |
| Commercial | Commercial | | 1,070 | | 4 | | 2 | | 1,072 | | Commercial | | 1,114 | | 5 | | 1 | | 1,118 | |
| Total mortgage-backed securities | Total mortgage-backed securities | | $ | 65,691 | | $ | 1,083 | | $ | 927 | | $ | 65,847 | | Total mortgage-backed securities | | $ | 91,622 | | $ | 63 | | $ | 10,034 | | $ | 81,651 | |
| U.S. Treasury securities | U.S. Treasury securities | | $ | 111,819 | | $ | 30 | | $ | 1,632 | | $ | 110,217 | | U.S. Treasury securities | | $ | 134,961 | | $ | — | | $ | 13,722 | | $ | 121,239 | |
State and municipal(5) | | 8,923 | | 589 | | 12 | | 9,500 | | |
| State and municipal | | State and municipal | | 9,237 | | 34 | | 764 | | 8,507 | |
| Foreign government | Foreign government | | 1,651 | | 4 | | 36 | | 1,619 | | Foreign government | | 2,075 | | — | | 93 | | 1,982 | |
Asset-backed securities(2) | Asset-backed securities(2) | | 28,879 | | 8 | | 32 | | 28,855 | | Asset-backed securities(2) | | 30,968 | | 4 | | 703 | | 30,269 | |
| Total debt securities HTM, net | Total debt securities HTM, net | | $ | 216,963 | | $ | 1,714 | | $ | 2,639 | | $ | 216,038 | | Total debt securities HTM, net | | $ | 268,863 | | $ | 101 | | $ | 25,316 | | $ | 243,648 | |
(1)Amortized cost is reported net of ACL of $115$95 million and $87$120 million at September 30, 20222023 and December 31, 2021,2022, respectively.
(2)The Company invests in mortgage- and asset-backed securities. These securitizations are generally considered VIEs. The Company’s maximum exposure to loss from these VIEs is equal to the carrying amount of the securities, which is reflected in the table above. See Note 1820 for mortgage- and asset-backed securitizations in which the Company has other involvement.
(3)In June 2022, CitibankJanuary 2023, Citi adopted ASU 2022-01. Upon adoption, Citi transferred $21.5$3.3 billion of agency residential mortgage-backed securities from HTM classification to AFS classification to HTM classification in accordance with ASC 320. Atas allowed under the time of transfer, the securities were in an unrealized loss position of $2.3 billion. The loss amounts will remain in AOCI and will be amortized over the remaining life of the securities.
(4)In September 2022, Citibank transferred $165 million of municipal bonds from AFS classification to HTM classification in accordance with ASC 320. At the time of transfer, the bonds were in an unrealized loss position of $12 million. The loss amounts will remain in AOCI and will be amortized over the remaining life of the securities.
(5)In February 2021, the Company transferred $237 million of state and municipal bonds from AFS classification to HTM classification in accordance with ASC 320.ASU. At the time of transfer, the securities were in an unrealized gain position of $14 million. The gain amounts will remain$0.1 billion, which was recorded inAOCI upon transfer. AOCI and will be amortized overSee Note 1 to the remaining life of the securities.
The following table presents the carrying value and fair value of HTM debt securities by contractual maturity dates:
| | | | | September 30, 2022 | December 31, 2021 | | September 30, 2023 | December 31, 2022 |
| In millions of dollars | In millions of dollars | Amortized cost(1) | Fair value | | Amortized cost(1) | Fair value | | In millions of dollars | Amortized cost(1) | Fair value | | Amortized cost(1) | Fair value | |
| Mortgage-backed securities | Mortgage-backed securities | | | | | Mortgage-backed securities | | | | |
| Due within 1 year | Due within 1 year | $ | 32 | | $ | 32 | | | $ | 152 | | $ | 151 | | | Due within 1 year | $ | 20 | | $ | 20 | | | $ | 27 | | $ | 27 | | |
| After 1 but within 5 years | After 1 but within 5 years | 683 | | 663 | | | 684 | | 725 | | | After 1 but within 5 years | 660 | | 622 | | | 520 | | 505 | | |
| After 5 but within 10 years | After 5 but within 10 years | 1,520 | | 1,386 | | | 1,655 | | 1,739 | | | After 5 but within 10 years | 1,229 | | 1,094 | | | 1,496 | | 1,374 | | |
| After 10 years | After 10 years | 88,352 | | 77,351 | | | 63,200 | | 63,232 | | | After 10 years | 80,996 | | 67,646 | | | 89,579 | | 79,745 | | |
| Total | Total | $ | 90,587 | | $ | 79,432 | | | $ | 65,691 | | $ | 65,847 | | | Total | $ | 82,905 | | $ | 69,382 | | | $ | 91,622 | | $ | 81,651 | | |
| U.S. Treasury securities | U.S. Treasury securities | | | | | U.S. Treasury securities | | | | |
| Due within 1 year | Due within 1 year | $ | — | | $ | — | | | $ | — | | $ | — | | | Due within 1 year | $ | 3,403 | | $ | 3,360 | | | $ | 3,148 | | $ | 3,017 | | |
| After 1 but within 5 years | After 1 but within 5 years | 89,774 | | 81,540 | | | 65,498 | | 64,516 | | | After 1 but within 5 years | 130,534 | | 117,304 | | | 86,617 | | 79,104 | | |
| After 5 but within 10 years | After 5 but within 10 years | 45,195 | | 38,757 | | | 46,321 | | 45,701 | | | After 5 but within 10 years | 997 | | 857 | | | 45,196 | | 39,118 | | |
| After 10 years | After 10 years | — | | — | | | — | | — | | | After 10 years | — | | — | | | — | | — | | |
| Total | Total | $ | 134,969 | | $ | 120,297 | | | $ | 111,819 | | $ | 110,217 | | | Total | $ | 134,934 | | $ | 121,521 | | | $ | 134,961 | | $ | 121,239 | | |
| State and municipal | State and municipal | | | | | State and municipal | | | | |
| Due within 1 year | Due within 1 year | $ | 41 | | $ | 41 | | | $ | 51 | | $ | 50 | | | Due within 1 year | $ | 30 | | $ | 30 | | | $ | 22 | | $ | 21 | | |
| After 1 but within 5 years | After 1 but within 5 years | 121 | | 120 | | | 166 | | 170 | | | After 1 but within 5 years | 116 | | 113 | | | 102 | | 100 | | |
| After 5 but within 10 years | After 5 but within 10 years | 935 | | 880 | | | 908 | | 951 | | | After 5 but within 10 years | 1,289 | | 1,187 | | | 1,002 | | 967 | | |
| After 10 years | After 10 years | 8,118 | | 7,081 | | | 7,798 | | 8,329 | | | After 10 years | 7,668 | | 6,594 | | | 8,111 | | 7,419 | | |
| Total | Total | $ | 9,215 | | $ | 8,122 | | | $ | 8,923 | | $ | 9,500 | | | Total | $ | 9,103 | | $ | 7,924 | | | $ | 9,237 | | $ | 8,507 | | |
| Foreign government | Foreign government | | | | | Foreign government | | | | |
| Due within 1 year | Due within 1 year | $ | — | | $ | — | | | $ | 292 | | $ | 291 | | | Due within 1 year | $ | 1,131 | | $ | 1,090 | | | $ | 143 | | $ | 139 | | |
| After 1 but within 5 years | After 1 but within 5 years | 2,014 | | 1,899 | | | 1,359 | | 1,328 | | | After 1 but within 5 years | 1,183 | | 1,135 | | | 1,932 | | 1,843 | | |
| After 5 but within 10 years | After 5 but within 10 years | — | | — | | | — | | — | | | After 5 but within 10 years | — | | — | | | — | | — | | |
| After 10 years | After 10 years | — | | — | | | — | | — | | | After 10 years | — | | — | | | — | | — | | |
| Total | Total | $ | 2,014 | | $ | 1,899 | | | $ | 1,651 | | $ | 1,619 | | | Total | $ | 2,314 | | $ | 2,225 | | | $ | 2,075 | | $ | 1,982 | | |
All other(2) | All other(2) | | | | | All other(2) | | | | |
| Due within 1 year | Due within 1 year | $ | — | | $ | — | | | $ | — | | $ | — | | | Due within 1 year | $ | — | | $ | — | | | $ | — | | $ | — | | |
| After 1 but within 5 years | After 1 but within 5 years | — | | — | | | — | | — | | | After 1 but within 5 years | 1 | | 1 | | | — | | — | | |
| After 5 but within 10 years | After 5 but within 10 years | 11,857 | | 11,603 | | | 11,520 | | 11,515 | | | After 5 but within 10 years | 12,016 | | 11,970 | | | 11,751 | | 11,583 | | |
| After 10 years | After 10 years | 19,222 | | 18,454 | | | 17,359 | | 17,340 | | | After 10 years | 18,183 | | 17,979 | | | 19,217 | | 18,686 | | |
| Total | Total | $ | 31,079 | | $ | 30,057 | | | $ | 28,879 | | $ | 28,855 | | | Total | $ | 30,200 | | $ | 29,950 | | | $ | 30,968 | | $ | 30,269 | | |
| Total debt securities HTM | Total debt securities HTM | $ | 267,864 | | $ | 239,807 | | | $ | 216,963 | | $ | 216,038 | | | Total debt securities HTM | $ | 259,456 | | $ | 231,002 | | | $ | 268,863 | | $ | 243,648 | | |
(1)Amortized cost is reported net of ACL of $115$95 million and $87$120 million at September 30, 20222023 and December 31, 2021,2022, respectively.
(2)Includes corporate and asset-backed securities.
HTM Debt Securities Delinquency and Non-Accrual Details
Citi did not have any HTM debt securities that were delinquent or on non-accrual status at September 30, 20222023 or December 31, 2021.2022.
There were no purchased credit-deteriorated HTM debt securities held by the Company as of September 30, 20222023 or December 31, 2021.
Evaluating Investments for Impairment
Impairment—AFS Debt Securities
Overview—AFS Debt SecuritiesOverview
The Company conducts periodic reviews of all AFS debt securities with unrealized losses to evaluate whether the impairment resulted from expected credit losses or from other factors and to evaluate the Company’s intent to sell such securities.
For more information on evaluating investments for impairment, see Note 13 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
Recognition and Measurement of Impairment
The following tables presenttable presents total impairment on InvestmentsAFS investments recognized in earnings:
| | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
September 30, 2022 | Three Months Ended
September 30, 2021 |
| In millions of dollars | AFS | Other
assets | Total | AFS | | Other assets | Total |
| Impairment losses related to debt securities that the Company does not intend to sell nor will likely be required to sell: | | | | | | | |
| Total impairment losses recognized during the period | $ | — | | $ | — | | $ | — | | $ | — | | | $ | — | | $ | — | |
Less: portion of impairment loss recognized in AOCI (before taxes) | — | | — | | — | | — | | | — | | — | |
| Net impairment losses recognized in earnings for debt securities that the Company does not intend to sell nor will likely be required to sell | $ | — | | $ | — | | $ | — | | $ | — | | | $ | — | | $ | — | |
| Impairment losses recognized in earnings for debt securities that the Company intends to sell, would more-likely-than-not be required to sell or will be subject to an issuer call deemed probable of exercise | 74 | | — | | 74 | | 21 | | | — | | 21 | |
| Total impairment losses recognized in earnings | $ | 74 | | $ | — | | $ | 74 | | $ | 21 | | | $ | — | | $ | 21 | |
| Nine Months Ended
September 30, 2022 | Nine Months Ended
September 30, 2021 |
| In millions of dollars | AFS | Other
assets | Total | AFS | | Other assets | Total |
| Impairment losses related to debt securities that the Company does not intend to sell nor will likely be required to sell: | | | | | | | |
| Total impairment losses recognized during the period | $ | — | | $ | — | | $ | — | | $ | — | | | $ | — | | $ | — | |
Less: portion of impairment loss recognized in AOCI (before taxes) | — | | — | | — | | — | | | — | | — | |
| Net impairment losses recognized in earnings for debt securities that the Company does not intend to sell nor will likely be required to sell | $ | — | | $ | — | | $ | — | | $ | — | | | $ | — | | $ | — | |
| Impairment losses recognized in earnings for debt securities that the Company intends to sell, would more-likely-than-not be required to sell or will be subject to an issuer call deemed probable of exercise | 254 | | — | | 254 | | 99 | | | — | | 99 | |
| Total impairment losses recognized in earnings | $ | 254 | | $ | — | | $ | 254 | | $ | 99 | | | $ | — | | $ | 99 | |
| | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | 2023 | 2022 | 2023 | 2022 |
Impairment losses related to debt securities that the Company does not intend to sell
nor will likely be required to sell: | | | | |
| Total impairment losses recognized during the period | $ | — | | $ | — | | $ | — | | $ | — | |
Less: Portion of impairment loss recognized in AOCI (before taxes) | — | | — | | — | | — | |
Net impairment losses recognized in earnings for debt securities that the Company
does not intend to sell nor will likely be required to sell | $ | — | | $ | — | | $ | — | | $ | — | |
Impairment losses recognized in earnings for debt securities that the Company
intends to sell, would more-likely-than-not be required to sell or will be subject
to an issuer call deemed probable of exercise | 43 | | 74 | | 137 | | 254 | |
| Total impairment losses recognized in earnings | $ | 43 | | $ | 74 | | $ | 137 | | $ | 254 | |
Allowance for Credit Losses on AFS Debt Securities
| | | | | | | | | | | | | | | | | | | |
| | | | | | Three Months Ended September 30, 2022 | | | | | | |
| In millions of dollars | | | | | | Corporate | Total AFS | | | | | | |
| Allowance for credit losses at beginning of period | | | | | | $ | 6 | | $ | 6 | | | | | | | |
| Gross write-offs | | | | | | — | | — | | | | | | | |
| Gross recoveries | | | | | | 5 | | 5 | | | | | | | |
| Net credit losses (NCLs) | | | | | | $ | 5 | | $ | 5 | | | | | | | |
| NCLs | | | | | | $ | (5) | | $ | (5) | | | | | | | |
| Credit losses on securities without previous credit losses | | | | | | — | | — | | | | | | | |
| Net reserve builds (releases) on securities with previous credit losses | | | | | | — | | — | | | | | | | |
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| Total provision for credit losses | | | | | | $ | (5) | | $ | (5) | | | | | | | |
| Initial allowance on newly purchased credit-deteriorated securities during the period | | | | | | — | | — | | | | | | | |
| Allowance for credit losses at end of period | | | | | | $ | 1 | | $ | 1 | | | | | | | |
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| | | | | | Nine Months Ended September 30, 2022 | | | | | | |
| In millions of dollars | | | | | | Corporate | Total AFS | | | | | | |
| Allowance for credit losses at beginning of period | | | | | | $ | 8 | | $ | 8 | | | | | | | |
| Gross write-offs | | | | | | — | | — | | | | | | | |
| Gross recoveries | | | | | | 5 | | 5 | | | | | | | |
| Net credit losses (NCLs) | | | | | | $ | 5 | | $ | 5 | | | | | | | |
| NCLs | | | | | | $ | (5) | | $ | (5) | | | | | | | |
| Credit losses on securities without previous credit losses | | | | | | — | | — | | | | | | | |
| Net reserve builds (releases) on securities with previous credit losses | | | | | | (2) | | (2) | | | | | | | |
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| Total provision for credit losses | | | | | | $ | (7) | | $ | (7) | | | | | | | |
| Initial allowance on newly purchased credit-deteriorated securities during the period | | | | | | — | | — | | | | | | | |
| Allowance for credit losses at end of period | | | | | | $ | 1 | | $ | 1 | | | | | | | |
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| | | | | Three Months Ended September 30, 2021 |
| In millions of dollars | | | | | Corporate | Total AFS |
| Allowance for credit losses at beginning of period | | | | | $ | 5 | | $ | 5 | |
| Gross write-offs | | | | | — | | — | |
| Gross recoveries | | | | | — | | — | |
| Net credit losses (NCLs) | | | | | $ | — | | $ | — | |
| NCLs | | | | | $ | — | | $ | — | |
| Credit losses on securities without previous credit losses | | | | | 1 | | 1 | |
| Net reserve builds (releases) on securities with previous credit losses | | | | | — | | — | |
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| Total provision for credit losses | | | | | $ | 1 | | $ | 1 | |
| Initial allowance on newly purchased credit-deteriorated securities during the period | | | | | — | | — | |
| Allowance for credit losses at end of period | | | | | $ | 6 | | $ | 6 | |
| | | | | Nine Months Ended September 30, 2021 |
| In millions of dollars | | | | | Corporate | Total AFS |
| Allowance for credit losses at beginning of period | | | | | $ | 5 | | $ | 5 | |
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| Gross write-offs | | | | | — | | — | |
| Gross recoveries | | | | | — | | — | |
| Net credit losses (NCLs) | | | | | $ | — | | $ | — | |
| NCLs | | | | | $ | — | | $ | — | |
| Credit losses on securities without previous credit losses | | | | | 1 | | 1 | |
| Net reserve builds (releases) on securities with previous credit losses | | | | | — | | — | |
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| Total provision for credit losses | | | | | $ | 1 | | $ | 1 | |
| Initial allowance on newly purchased credit-deteriorated securities during the period | | | | | — | | — | |
| Allowance for credit losses at end of period | | | | | $ | 6 | | $ | 6 | |
Non-Marketable Equity Securities Not Carried at
Fair Value
Non-marketable equity securities are required to be measured at fair value with changes in fair value recognized in earnings unless (i) the measurement alternative is elected or (ii) the investment represents Federal Reserve Bank and Federal Home Loan Bank stock or certain exchange seats that continue to be carried at cost.
The election to measure a non-marketable equity security using the measurement alternative is made on an instrument-by-instrument basis. Under the measurement alternative, an equity security is carried at cost plus or minus changes resulting from observable prices in orderly transactions for the identical or a similar investment of the same issuer. The carrying value of the equity security is adjusted to fair value on the date of an observed transaction. Fair value may differ from the observed transaction price due to a number of factors, including marketability adjustments and differences in rights and obligations when the observed transaction is not for the identical investment held by Citi.
Equity securities under the measurement alternative are also assessed for impairment. On a quarterly basis, management qualitatively assesses whether each equity security under the measurement alternative is impaired. For details on impairment indicators that are considered, see Note 13 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
When the qualitative assessment indicates that impairment exists,the equity security is impaired, its fair value is determined. If the fair value of the investment is less than its carrying value, the investment is written down to fair value with the full difference between the fair value of the investment and its carrying amount recognized inthrough earnings.
Below is the carrying value of non-marketable equity securities measured using the measurement alternative at September 30, 20222023 and December 31, 20212022:
| | In millions of dollars | In millions of dollars | September 30, 2022 | December 31, 2021 | In millions of dollars | September 30, 2023 | December 31, 2022 |
| Measurement alternative: | Measurement alternative: | | Measurement alternative: | |
| Carrying value | Carrying value | $ | 1,690 | | $ | 1,413 | | Carrying value | $ | 1,621 | | $ | 1,676 | |
Below are amounts recognized in earnings and life-to-date amounts for non-marketable equity securities measured using the measurement alternative:
| | | Three Months Ended September 30, | Nine Months Ended September 30, | | Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | In millions of dollars | 2022 | 2021 | 2022 | 2021 | In millions of dollars | 2023 | 2022 | 2023 | 2022 |
Measurement alternative:(1) | | | | |
Measurement alternative(1): | | Measurement alternative(1): | | | |
| Impairment losses | Impairment losses | $ | 17 | | $ | 9 | | $ | 23 | | $ | 13 | | Impairment losses | $ | 27 | | $ | 17 | | $ | 90 | | $ | 23 | |
| Downward changes for observable prices | Downward changes for observable prices | — | | — | | — | | — | | Downward changes for observable prices | 4 | | — | | 24 | | — | |
| Upward changes for observable prices | Upward changes for observable prices | 7 | | 86 | | 141 | | 382 | | Upward changes for observable prices | 17 | | 7 | | 49 | | 141 | |
(1) See Note 2022 for additional information on these nonrecurring fair value measurements.
| | | | | |
| Life-to-date amounts on securities still held |
| In millions of dollars | September 30, 20222023 |
| Measurement alternative: | |
| Impairment losses | $ | 103299 | |
| Downward changes for observable prices | 328 | |
| Upward changes for observable prices | 831913 | |
A similar impairment analysis is performed for non-marketable equity securities carried at cost. For the three months ended September 30, 20222023 and 2021,2022, there was no impairment loss recognized in earnings for non-marketable equity securities carried at cost.
13. LOANS
Citigroup loans are reported in two categories: corporate and consumer. These categories are classified primarily according to the operating segment, reporting unit and component that manage the loans in addition to the nature of the obligor, with corporate loans generally made for corporate institutional and public sector clients around the world and consumer loans to retail and small business customers. For additional information regarding Citi’s corporate and consumer loans, including related accounting policies, see Note 1 above and Notes 1 and 14 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
Corporate Loans
Corporate loans represent loans and leases managed by ICG and the Mexico SBMM component of Legacy Franchises. The following table presents information by corporate loan type:
| | In millions of dollars | In millions of dollars | September 30,
2022 | December 31,
2021 | In millions of dollars | September 30,
2023 | December 31,
2022 |
In North America offices(1) | In North America offices(1) | | In North America offices(1) | |
| Commercial and industrial | Commercial and industrial | $ | 52,990 | | $ | 48,364 | | Commercial and industrial | $ | 58,130 | | $ | 56,176 | |
| Financial institutions | Financial institutions | 43,667 | | 49,804 | | Financial institutions | 36,783 | | 43,399 | |
Mortgage and real estate(2) | Mortgage and real estate(2) | 17,762 | | 15,965 | | Mortgage and real estate(2) | 17,445 | | 17,829 | |
| Installment and other | Installment and other | 21,222 | | 20,143 | | Installment and other | 23,207 | | 23,767 | |
| Lease financing | Lease financing | 383 | | 415 | | Lease financing | 225 | | 308 | |
| Total | Total | $ | 136,024 | | $ | 134,691 | | Total | $ | 135,790 | | $ | 141,479 | |
In offices outside North America(1) | In offices outside North America(1) | | | In offices outside North America(1) | | |
| Commercial and industrial | Commercial and industrial | $ | 100,570 | | $ | 102,735 | | Commercial and industrial | $ | 95,528 | | $ | 93,967 | |
| Financial institutions | Financial institutions | 23,604 | | 22,158 | | Financial institutions | 23,759 | | 21,931 | |
Mortgage and real estate(2) | Mortgage and real estate(2) | 4,005 | | 4,374 | | Mortgage and real estate(2) | 6,481 | | 4,179 | |
| Installment and other | Installment and other | 19,653 | | 22,812 | | Installment and other | 24,407 | | 23,347 | |
| Lease financing | Lease financing | 48 | | 40 | | Lease financing | 46 | | 46 | |
| Governments and official institutions | Governments and official institutions | 4,473 | | 4,423 | | Governments and official institutions | 2,794 | | 4,205 | |
| Total | Total | $ | 152,353 | | $ | 156,542 | | Total | $ | 153,015 | | $ | 147,675 | |
Corporate loans, net of unearned income(3) | $ | 288,377 | | $ | 291,233 | | |
Corporate loans, net of unearned income, excluding portfolio layer cumulative basis adjustments(4)(5)(6) | | Corporate loans, net of unearned income, excluding portfolio layer cumulative basis adjustments(4)(5)(6) | $ | 288,805 | | $ | 289,154 | |
Unallocated portfolio layer cumulative basis adjustments(3) | | Unallocated portfolio layer cumulative basis adjustments(3) | $ | (171) | | $ | — | |
Corporate loans, net of unearned income(4)(5)(6) | | Corporate loans, net of unearned income(4)(5)(6) | $ | 288,634 | | $ | 289,154 | |
(1)North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America. The classification between offices in North America and outside North America is based on the domicile of the booking unit. The difference between the domicile of the booking unit and the domicile of the managing unit is not material.
(2)Loans secured primarily by real estate.
(3)Represents fair value hedge basis adjustments related to portfolio layer method hedges of mortgage and real estate loans, which are not allocated to individual loans in the portfolio. See Note 21.
(4)Corporate loans are net of unearned income of ($750)806) million and ($770)797) million at September 30, 20222023 and December 31, 2021,2022, respectively. Unearned income on corporate loans primarily represents interest received in advance, but not yet earned, on loans originated on a discounted basis.
(5)Not included in the balances above is approximately $2 billion of accrued interest receivable at September 30, 2023 and December 31, 2022, which is included in Other assets on the Consolidated Balance Sheet.
(6)Accrued interest receivable considered to be uncollectible is reversed through interest income. Amounts reversed were not material for the three and nine months ended September 30, 2023 and 2022.
The Company sold and/or reclassified to held-for-sale $1.3 billion and $4.2 billion of corporate loans during the three and nine months ended September 30, 2023, respectively, and $2.2 billion and $3.7 billion of corporate loans during the three and nine months ended September 30, 2022, respectively, and $1.0 billion and $4.1 billion of corporate loans during the three and nine months ended September 30, 2021, respectively. The Company did not have significant purchases of corporate loans classified as held-for-investment for the three and nine months ended September 30, 20222023 or 2021.2022.
Corporate Loan Delinquencies and Non-Accrual Details at September 30, 20222023
| | | | | | | | | | | | | | | | | | | | |
| In millions of dollars | 30–89 days past due and accruing(1) | ≥ 90 days past due and accruing(1) | Total past due
and accruing | Total non-accrual(2) | Total current(3) | Total loans(4) |
| Commercial and industrial | $ | 598 | | $ | 691 | | $ | 1,289 | | $ | 1,085 | | $ | 149,236 | | $ | 151,610 | |
| Financial institutions | 147 | | 140 | | 287 | | 178 | | 66,439 | | 66,904 | |
| Mortgage and real estate | 22 | | 15 | | 37 | | 110 | | 21,573 | | 21,720 | |
| Lease financing | — | | — | | — | | 10 | | 421 | | 431 | |
| Other | 46 | | 126 | | 172 | | 102 | | 43,800 | | 44,074 | |
| Loans at fair value | | | | | | 3,638 | |
| | | | | | |
| Total | $ | 813 | | $ | 972 | | $ | 1,785 | | $ | 1,485 | | $ | 281,469 | | $ | 288,377 | |
| | | | | | | | | | | | | | | | | | | | |
| In millions of dollars | 30–89 days past due and accruing(1) | ≥ 90 days past due and accruing(1) | Total past due
and accruing | Total non-accrual(2) | Total current(3) | Total loans(4) |
| Commercial and industrial | $ | 402 | | $ | 183 | | $ | 585 | | $ | 903 | | $ | 148,907 | | $ | 150,395 | |
| Financial institutions | 106 | | 5 | | 111 | | 87 | | 59,948 | | 60,146 | |
| Mortgage and real estate | 8 | | 100 | | 108 | | 821 | | 22,932 | | 23,861 | |
| Lease financing | — | | — | | — | | — | | 271 | | 271 | |
| Other | 70 | | 20 | | 90 | | 164 | | 46,689 | | 46,943 | |
| Loans at fair value | | | | | | 7,189 | |
| | | | | | |
Total(5) | $ | 586 | | $ | 308 | | $ | 894 | | $ | 1,975 | | $ | 278,747 | | $ | 288,805 | |
Corporate Loan Delinquencies and Non-Accrual Details at December 31, 20212022
| | In millions of dollars | In millions of dollars | 30–89 days past due and accruing(1) | ≥ 90 days past due and accruing(1) | Total past due
and accruing | Total non-accrual(2) | Total current(3) | Total loans(4) | In millions of dollars | 30–89 days past due and accruing(1) | ≥ 90 days past due and accruing(1) | Total past due
and accruing | Total non-accrual(2) | Total current(3) | Total loans(4) |
| Commercial and industrial | Commercial and industrial | $ | 1,072 | | $ | 239 | | $ | 1,311 | | $ | 1,263 | | $ | 144,430 | | $ | 147,004 | | Commercial and industrial | $ | 763 | | $ | 594 | | $ | 1,357 | | $ | 860 | | $ | 145,586 | | $ | 147,803 | |
| Financial institutions | Financial institutions | 320 | | 166 | | 486 | | 2 | | 71,279 | | 71,767 | | Financial institutions | 233 | | 102 | | 335 | | 152 | | 64,420 | | 64,907 | |
| Mortgage and real estate | Mortgage and real estate | 1 | | 1 | | 2 | | 136 | | 20,153 | | 20,291 | | Mortgage and real estate | 30 | | 12 | | 42 | | 33 | | 21,874 | | 21,949 | |
| Lease financing | Lease financing | — | | — | | — | | 14 | | 441 | | 455 | | Lease financing | — | | 1 | | 1 | | 10 | | 343 | | 354 | |
| Other | Other | 77 | | 19 | | 96 | | 138 | | 45,412 | | 45,646 | | Other | 145 | | 18 | | 163 | | 67 | | 48,788 | | 49,018 | |
| Loans at fair value | Loans at fair value | | 6,070 | | Loans at fair value | | 5,123 | |
| | Total | Total | $ | 1,470 | | $ | 425 | | $ | 1,895 | | $ | 1,553 | | $ | 281,715 | | $ | 291,233 | | Total | $ | 1,171 | | $ | 727 | | $ | 1,898 | | $ | 1,122 | | $ | 281,011 | | $ | 289,154 | |
(1)Corporate loans that are 90 days past due are generally classified as non-accrual. Corporate loans are considered past due when principal or interest is contractually due but unpaid.
(2)Non-accrual loans generally include those loans that are 90 days or more past due or those loans for which Citi believes, based on actual experience and a forward-looking assessment of the collectabilitycollectibility of the loan in full, that the payment of interest and/or principal is doubtful.
(3)Loans less than 30 days past due are presented as current.
(4)The Total loans includecolumn includes loans at fair value, which are not included in the various delinquency columns.columns and, therefore, the tables’ total rows will not cross-foot.
(5)Excludes $(171) million of unallocated portfolio layer cumulative basis adjustments at September 30, 2023.
Corporate Loans Credit Quality Indicators
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Recorded investment in loans(1) |
| Term loans by year of origination | Revolving line of credit arrangements(2) | | September 30, 2022 | |
| In millions of dollars | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | |
Investment grade(3) | | | | | | | | | | |
Commercial and industrial(4) | $ | 40,874 | | $ | 6,736 | | $ | 3,544 | | $ | 3,550 | | $ | 2,771 | | $ | 7,943 | | $ | 38,771 | | | $ | 104,189 | | |
Financial institutions(4) | 10,942 | | 4,787 | | 1,053 | | 1,104 | | 764 | | 1,722 | | 37,679 | | | 58,051 | | |
| Mortgage and real estate | 3,376 | | 2,997 | | 3,858 | | 2,779 | | 1,393 | | 2,083 | | 174 | | | 16,660 | | |
Other(5) | 6,583 | | 2,113 | | 1,689 | | 829 | | 2,216 | | 4,221 | | 22,732 | | | 40,383 | | |
| Total investment grade | $ | 61,775 | | $ | 16,633 | | $ | 10,144 | | $ | 8,262 | | $ | 7,144 | | $ | 15,969 | | $ | 99,356 | | | $ | 219,283 | | |
Non-investment grade(3) | | | | | | | | | | |
| Accrual | | | | | | | | | | |
Commercial and industrial(4) | $ | 16,582 | | $ | 4,509 | | $ | 1,858 | | $ | 1,275 | | $ | 1,134 | | $ | 4,267 | | $ | 16,711 | | | $ | 46,336 | | |
Financial institutions(4) | 4,674 | | 1,006 | | 217 | | 232 | | 53 | | 423 | | 2,070 | | | 8,675 | | |
| Mortgage and real estate | 532 | | 761 | | 513 | | 782 | | 1,049 | | 865 | | 448 | | | 4,950 | | |
Other(5) | 929 | | 615 | | 493 | | 394 | | 121 | | 306 | | 1,152 | | | 4,010 | | |
| Non-accrual | | | | | | | | | | |
Commercial and industrial(4) | 157 | | 107 | | 111 | | 81 | | 71 | | 147 | | 411 | | | 1,085 | | |
| Financial institutions | 41 | | 35 | | — | | — | | — | | — | | 102 | | | 178 | | |
| Mortgage and real estate | — | | 31 | | 28 | | — | | — | | 15 | | 36 | | | 110 | | |
Other(5) | 13 | | 1 | | 8 | | 38 | | 10 | | 13 | | 29 | | | 112 | | |
| Total non-investment grade | $ | 22,928 | | $ | 7,065 | | $ | 3,228 | | $ | 2,802 | | $ | 2,438 | | $ | 6,036 | | $ | 20,959 | | | $ | 65,456 | | |
Loans at fair value(6) | | | | | | | | | $ | 3,638 | | |
| Corporate loans, net of unearned income | $ | 84,703 | | $ | 23,698 | | $ | 13,372 | | $ | 11,064 | | $ | 9,582 | | $ | 22,005 | | $ | 120,315 | | | $ | 288,377 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Recorded investment in loans(1) |
| Term loans by year of origination | Revolving line of credit arrangements(2) | | September 30, 2023 | |
| In millions of dollars | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | |
Investment grade(3) | | | | | | | | | | |
Commercial and industrial(4) | $ | 42,312 | | $ | 7,844 | | $ | 4,809 | | $ | 2,441 | | $ | 2,751 | | $ | 7,538 | | $ | 36,301 | | | $ | 103,996 | | |
Financial institutions(4) | 9,518 | | 4,050 | | 3,048 | | 520 | | 603 | | 1,978 | | 33,069 | | | 52,786 | | |
| Mortgage and real estate | 2,075 | | 4,881 | | 3,874 | | 3,026 | | 1,725 | | 1,903 | | 141 | | | 17,625 | | |
Other(6) | 2,227 | | 5,739 | | 1,404 | | 1,009 | | 938 | | 4,697 | | 27,682 | | | 43,696 | | |
| Total investment grade | $ | 56,132 | | $ | 22,514 | | $ | 13,135 | | $ | 6,996 | | $ | 6,017 | | $ | 16,116 | | $ | 97,193 | | | $ | 218,103 | | |
Non-investment grade(3) | | | | | | | | | | |
| Accrual | | | | | | | | | | |
Commercial and industrial(4) | $ | 16,057 | | $ | 5,183 | | $ | 2,328 | | $ | 1,650 | | $ | 920 | | $ | 2,967 | | $ | 16,391 | | | $ | 45,496 | | |
Financial institutions(4) | 3,172 | | 1,115 | | 842 | | 16 | | 175 | | 205 | | 1,748 | | | 7,273 | | |
| Mortgage and real estate | 658 | | 776 | | 946 | | 677 | | 653 | | 1,103 | | 602 | | | 5,415 | | |
Other(6) | 513 | | 786 | | 376 | | 202 | | 215 | | 132 | | 1,130 | | | 3,354 | | |
| Non-accrual | | | | | | | | | | |
Commercial and industrial(4) | 80 | | 71 | | 74 | | — | | 45 | | 178 | | 455 | | | 903 | | |
| Financial institutions | 7 | | 3 | | 28 | | — | | — | | — | | 49 | | | 87 | | |
| Mortgage and real estate | 3 | | 329 | | 12 | | 28 | | 137 | | 260 | | 52 | | | 821 | | |
Other(5) | 12 | | — | | 41 | | — | | 62 | | 2 | | 47 | | | 164 | | |
| Total non-investment grade | $ | 20,502 | | $ | 8,263 | | $ | 4,647 | | $ | 2,573 | | $ | 2,207 | | $ | 4,847 | | $ | 20,474 | | | $ | 63,513 | | |
Loans at fair value(6) | | | | | | | | | $ | 7,189 | | |
Corporate loans, net of unearned income(7) | $ | 76,634 | | $ | 30,777 | | $ | 17,782 | | $ | 9,569 | | $ | 8,224 | | $ | 20,963 | | $ | 117,667 | | | $ | 288,805 | | |
| | | | Recorded investment in loans(1) | | Recorded investment in loans(1) |
| | Term loans by year of origination | Revolving line of credit arrangements(2) | | December 31, 2021 | | | Term loans by year of origination | Revolving line of credit arrangements(2) | | December 31, 2022 | |
| In millions of dollars | In millions of dollars | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | | In millions of dollars | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving line of credit arrangements(2) | December 31, 2022 |
Investment grade(3) | Investment grade(3) | | | | | Investment grade(3) | | | |
Commercial and industrial(4) | Commercial and industrial(4) | $ | 42,422 | | $ | 5,529 | | $ | 4,642 | | $ | 3,757 | | $ | 2,911 | | $ | 8,392 | | $ | 30,588 | | | $ | 98,241 | | | Commercial and industrial(4) | $ | 40,639 | | $ | 6,124 | | $ | 3,620 | | $ | 3,458 | | $ | 2,617 | | $ | 7,048 | | $ | 38,358 | | | $ | 101,864 | | |
Financial institutions(4) | Financial institutions(4) | 12,862 | | 1,678 | | 1,183 | | 1,038 | | 419 | | 1,354 | | 43,630 | | | 62,164 | | | Financial institutions(4) | 11,850 | | 3,877 | | 835 | | 922 | | 333 | | 1,327 | | 37,462 | | | 56,606 | | |
| Mortgage and real estate | Mortgage and real estate | 2,423 | | 3,660 | | 3,332 | | 2,015 | | 1,212 | | 1,288 | | 141 | | | 14,071 | | | Mortgage and real estate | 4,436 | | 3,236 | | 4,010 | | 2,619 | | 1,127 | | 1,706 | | 152 | | | 17,286 | | |
Other(5) | 9,037 | | 3,099 | | 1,160 | | 2,789 | | 330 | | 4,601 | | 18,727 | | | 39,743 | | | |
Other(6) | | Other(6) | 7,649 | | 2,687 | | 1,439 | | 643 | | 2,119 | | 3,832 | | 26,805 | | | 45,174 | | |
| Total investment grade | Total investment grade | $ | 66,744 | | $ | 13,966 | | $ | 10,317 | | $ | 9,599 | | $ | 4,872 | | $ | 15,635 | | $ | 93,086 | | | $ | 214,219 | | | Total investment grade | $ | 64,574 | | $ | 15,924 | | $ | 9,904 | | $ | 7,642 | | $ | 6,196 | | $ | 13,913 | | $ | 102,777 | | | $ | 220,930 | | |
Non-investment grade(3) | Non-investment grade(3) | | | | | Non-investment grade(3) | | | | |
| Accrual | Accrual | | | | | Accrual | | | | |
Commercial and industrial(4) | Commercial and industrial(4) | $ | 16,783 | | $ | 2,281 | | $ | 2,343 | | $ | 2,024 | | $ | 1,412 | | $ | 3,981 | | $ | 18,676 | | | $ | 47,500 | | | Commercial and industrial(4) | $ | 17,278 | | $ | 3,139 | | $ | 1,973 | | $ | 1,331 | | $ | 965 | | $ | 3,546 | | $ | 16,848 | | | $ | 45,080 | | |
Financial institutions(4) | Financial institutions(4) | 4,325 | | 347 | | 567 | | 101 | | 71 | | 511 | | 3,679 | | | 9,601 | | | Financial institutions(4) | 4,708 | | 630 | | 197 | | 254 | | 47 | | 240 | | 2,073 | | | 8,149 | | |
| Mortgage and real estate | Mortgage and real estate | 1,275 | | 869 | | 1,228 | | 1,018 | | 493 | | 586 | | 615 | | | 6,084 | | | Mortgage and real estate | 582 | | 835 | | 429 | | 729 | | 783 | | 801 | | 472 | | | 4,631 | | |
Other(5)(6) | Other(5)(6) | 1,339 | | 349 | | 554 | | 364 | | 119 | | 245 | | 3,236 | | | 6,206 | | | Other(5)(6) | 1,244 | | 559 | | 391 | | 413 | | 1 | | 219 | | 1,292 | | | 4,119 | | |
| Non-accrual | Non-accrual | | | | | Non-accrual | | | | |
Commercial and industrial(4) | 53 | | 119 | | 64 | | 104 | | 94 | | 117 | | 712 | | | 1,263 | | | |
| Financial institutions | — | | — | | — | | — | | — | | — | | 2 | | | 2 | | | |
| Commercial and industrial | | Commercial and industrial | 1 | | 12 | | 99 | | 115 | | 49 | | 105 | | 479 | | | 860 | | |
Financial institutions(4) | | Financial institutions(4) | 41 | | 34 | | — | | — | | — | | — | | 77 | | | 152 | | |
| Mortgage and real estate | Mortgage and real estate | 11 | | 8 | | 2 | | 49 | | 10 | | 25 | | 31 | | | 136 | | | Mortgage and real estate | 10 | | 4 | | — | | — | | — | | 19 | | — | | | 33 | | |
Other(5) | Other(5) | 19 | | 5 | | 19 | | 19 | | — | | 90 | | — | | | 152 | | | Other(5) | 6 | | — | | 26 | | 8 | | 10 | | 11 | | 16 | | | 77 | | |
| Total non-investment grade | Total non-investment grade | $ | 23,805 | | $ | 3,978 | | $ | 4,777 | | $ | 3,679 | | $ | 2,199 | | $ | 5,555 | | $ | 26,951 | | | $ | 70,944 | | | Total non-investment grade | $ | 23,870 | | $ | 5,213 | | $ | 3,115 | | $ | 2,850 | | $ | 1,855 | | $ | 4,941 | | $ | 21,257 | | | $ | 63,101 | | |
Loans at fair value(6) | Loans at fair value(6) | | | $ | 6,070 | | | Loans at fair value(6) | | | $ | 5,123 | | |
| Corporate loans, net of unearned income | Corporate loans, net of unearned income | $ | 90,549 | | $ | 17,944 | | $ | 15,094 | | $ | 13,278 | | $ | 7,071 | | $ | 21,190 | | $ | 120,037 | | | $ | 291,233 | | | Corporate loans, net of unearned income | $ | 88,444 | | $ | 21,137 | | $ | 13,019 | | $ | 10,492 | | $ | 8,051 | | $ | 18,854 | | $ | 124,034 | | | $ | 289,154 | | |
(1)Recorded investment in a loan includes net deferred loan fees and costs, unamortized premium or discount, less any direct write-downs.
(2)There were no significant revolving line of credit arrangements that converted to term loans during the quarter.period.
(3)Held-for-investment loans are accounted for on an amortized cost basis.
(4)Includes certain short-term loans with less than one year in tenor.
(5)Other includes installment and other, lease financing and loans to government and official institutions.
(6)Loans at fair value include loans to commercial and industrial, financial institutions, mortgage and real estate and other.
Corporate Gross Credit Losses
The table below details gross credit losses recognized during the nine months ended September 30, 2023, by year of loan origination:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Nine Months Ended September 30, 2023 |
| In millions of dollars | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving line of credit arrangement | Total |
| Commercial and industrial | $ | 9 | | $ | 19 | | $ | 1 | | $ | 1 | | $ | — | | $ | 2 | | $ | 73 | | $ | 105 | |
| Financial institutions | — | | — | | — | | — | | — | | — | | 38 | | 38 | |
| Mortgage and real estate | — | | — | | — | | 1 | | — | | 2 | | 1 | | 4 | |
Other(1) | — | | — | | — | | — | | — | | — | | 50 | | 50 | |
| Total | $ | 9 | | $ | 19 | | $ | 1 | | $ | 2 | | $ | — | | $ | 4 | | $ | 162 | | $ | 197 | |
(1) Other includes installment and other, lease financing and loans to government and official institutions.
Non-Accrual Corporate Loans
The following tables present non-accrual loan information by corporate loan type and interest income recognized on non-accrual corporate loans:
| | | | | | | | | | | | | | | | | | | | |
| | September 30, 2022 | Three Months Ended
September 30, 2022 | Nine Months Ended September 30, 2022 |
| In millions of dollars | Recorded investment(1) | Unpaid
principal balance | Related specific
allowance | Average carrying value(2) | Interest income recognized | Interest income recognized(3) |
| Non-accrual corporate loans | | | | | | |
| Commercial and industrial | $ | 1,085 | | $ | 1,837 | | $ | 368 | | $ | 1,047 | | $ | 10 | | $ | 28 | |
| Financial institutions | 178 | | 236 | | 51 | | 33 | | — | | — | |
| Mortgage and real estate | 110 | | 110 | | 1 | | 83 | | — | | 2 | |
| Lease financing | 10 | | 10 | | — | | 10 | | — | | — | |
| Other | 102 | | 186 | | 6 | | 95 | | — | | 3 | |
| Total non-accrual corporate loans | $ | 1,485 | | $ | 2,379 | | $ | 426 | | $ | 1,268 | | $ | 10 | | $ | 33 | |
| | | | | | | | | | | | | | | | |
| December 31, 2021 | |
| In millions of dollars | Recorded investment(1) | Unpaid
principal balance | Related specific
allowance | Average carrying value(2) | | |
| Non-accrual corporate loans | | | | | | |
| Commercial and industrial | $ | 1,263 | | $ | 1,858 | | $ | 198 | | $ | 1,839 | | | |
| Financial institutions | 2 | | 55 | | — | | 4 | | | |
| Mortgage and real estate | 136 | | 285 | | 10 | | 163 | | | |
| Lease financing | 14 | | 14 | | — | | 21 | | | |
| Other | 138 | | 165 | | 4 | | 134 | | | |
| Total non-accrual corporate loans | $ | 1,553 | | $ | 2,377 | | $ | 212 | | $ | 2,161 | | | |
| | | | September 30, 2022 | December 31, 2021 | | September 30, 2023 | December 31, 2022 |
| In millions of dollars | In millions of dollars | Recorded investment(1) | Related specific
allowance | Recorded investment(1) | Related specific
allowance | In millions of dollars | Recorded investment(1)(2) | Related specific
allowance | Recorded investment(1)(2) | Related specific
allowance |
| Non-accrual corporate loans with specific allowances | Non-accrual corporate loans with specific allowances | | | | Non-accrual corporate loans with specific allowances | | | |
| Commercial and industrial | Commercial and industrial | $ | 723 | | $ | 368 | | $ | 637 | | $ | 198 | | Commercial and industrial | $ | 718 | | $ | 205 | | $ | 583 | | $ | 268 | |
| Financial institutions | Financial institutions | 176 | | 51 | | — | | — | | Financial institutions | 81 | | 50 | | 149 | | 51 | |
| Mortgage and real estate | Mortgage and real estate | 57 | | 1 | | 29 | | 10 | | Mortgage and real estate | 628 | | 114 | | 33 | | 4 | |
| | Other | Other | 49 | | 6 | | 37 | | 4 | | Other | 10 | | 1 | | — | | — | |
| Total non-accrual corporate loans with specific allowances | Total non-accrual corporate loans with specific allowances | $ | 1,005 | | $ | 426 | | $ | 703 | | $ | 212 | | Total non-accrual corporate loans with specific allowances | $ | 1,437 | | $ | 370 | | $ | 765 | | $ | 323 | |
| Non-accrual corporate loans without specific allowances | Non-accrual corporate loans without specific allowances | | | | Non-accrual corporate loans without specific allowances | | | |
| Commercial and industrial | Commercial and industrial | $ | 362 | | N/A | $ | 626 | | N/A | Commercial and industrial | $ | 185 | | N/A | $ | 277 | | N/A |
| Financial institutions | Financial institutions | 2 | | N/A | 2 | | N/A | Financial institutions | 6 | | N/A | 3 | | N/A |
| Mortgage and real estate | Mortgage and real estate | 53 | | N/A | 107 | | N/A | Mortgage and real estate | 193 | | N/A | — | | N/A |
| Lease financing | Lease financing | 10 | | N/A | 14 | | N/A | Lease financing | — | | N/A | 10 | | N/A |
| Other | Other | 53 | | N/A | 101 | | N/A | Other | 154 | | N/A | 67 | | N/A |
| Total non-accrual corporate loans without specific allowances | Total non-accrual corporate loans without specific allowances | $ | 480 | | N/A | $ | 850 | | N/A | Total non-accrual corporate loans without specific allowances | $ | 538 | | N/A | $ | 357 | | N/A |
(1)Recorded investment in a loan includes net deferred loan fees and costs, unamortized premium or discount, less any direct write-downs.
(2)Average carrying value represents the average recorded investment balance and does not include related specific allowances.
(3)Interest income recognized for the three and nine months ended September 30, 20212023 was $8$6 million and $39$31 million, respectively, and for the three and nine months ended September 30, 2022 was $10 million and $33 million, respectively.
N/A Not applicable
Corporate Troubled Debt Restructurings(1)Loan Modifications to Borrowers Experiencing Financial Difficulty
Citi seeks to modify certain corporate loans to borrowers experiencing financial difficulty to reduce Citi’s exposure to loss, often providing the borrower with an opportunity to work through financial difficulties. Each modification is unique to the borrower’s individual circumstances. The following table details corporate loan modifications granted during the three and nine months ended September 30, 2023 to borrowers experiencing financial difficulty by type of modification granted and the financial effect of those modifications. Citi defines a corporate loan modification to a borrower experiencing financial difficulty as a modification of a loan classified as substandard or worse at the time of modification.
For the Three and Nine Months Ended September 30, 2022
| | | | | | | | | | | | | | | | |
| In millions of dollars | Carrying value of TDRs modified during the period | TDRs involving changes in the amount and/or timing of principal payments(2) | TDRs involving changes in the amount and/or timing of interest payments(3) | TDRs
involving changes
in the amount
and/or timing of
both principal and
interest payments | | |
| Three Months Ended September 30, 2022 | | | | | | |
| Commercial and industrial | $ | 11 | | $ | — | | $ | — | | $ | 11 | | | |
| | | | | | |
| | | | | | |
| Mortgage and real estate | 1 | | 1 | | — | | — | | | |
| | | | | | |
| Other | 7 | | — | | — | | 7 | | | |
| Total | $ | 19 | | $ | 1 | | $ | — | | $ | 18 | | | |
| Nine Months Ended September 30, 2022 | | | | | | |
| Commercial and industrial | $ | 26 | | $ | — | | $ | — | | $ | 26 | | | |
| | | | | | |
| Mortgage and real estate | 1 | | 1 | | — | | — | | | |
| Other | 30 | | — | | — | | 30 | | | |
| Total | $ | 57 | | $ | 1 | | $ | — | | $ | 56 | | | |
For the Three and Nine Months Ended September 30, 2021
| | In millions of dollars | Carrying value of TDRs modified during the period | TDRs involving changes in the amount and/or timing of principal payments(2) | TDRs involving changes in the amount and/or timing of interest payments(3) | TDRs
involving changes
in the amount
and/or timing of
both principal and
interest payments | | |
| Three Months Ended September 30, 2021 | | | | | |
| Commercial and industrial | $ | 2 | | $ | — | | $ | — | | $ | 2 | | | |
| | | | For the Three and Nine Months Ended September 30, 2023 | |
| In millions of dollars, except for weighted average term extension | | In millions of dollars, except for weighted average term extension | Total modifications balance at September 30, 2023(1)(2)(3) | | Term
extension | | Combination: Term extension and payment delay(4) | Weighted average term extension
(months) | |
| Three Months Ended September 30, 2023 | | Three Months Ended September 30, 2023 | | | | | | |
| Commercial and industrial | | Commercial and industrial | $ | 25 | | | $ | 25 | | | $ | — | | 22 | |
| Financial institutions | | Financial institutions | — | | | — | | | — | | — | | |
| Mortgage and real estate | Mortgage and real estate | — | | — | | — | | — | | | Mortgage and real estate | 35 | | | 35 | | | — | | 55 | |
| | Other | 4 | | — | | — | | 4 | | | |
Other(5) | | Other(5) | — | | | — | | | — | | — | | |
| Total | Total | $ | 6 | | $ | — | | $ | — | | $ | 6 | | | Total | $ | 60 | | | $ | 60 | | | $ | — | | | |
| Nine Months Ended September 30, 2021 | | | | | |
| Nine Months Ended September 30, 2023 | | Nine Months Ended September 30, 2023 | | | | | | |
| Commercial and industrial | Commercial and industrial | $ | 75 | | $ | — | | $ | — | | $ | 75 | | | Commercial and industrial | $ | 93 | | | $ | 70 | | | $ | 23 | | 28 | |
| | Financial institutions | | Financial institutions | — | | | — | | | — | | — | | |
| Mortgage and real estate | Mortgage and real estate | 4 | | — | | — | | 4 | | | Mortgage and real estate | 85 | | | 84 | | | 1 | | 37 | |
| Other | 4 | | — | | — | | 4 | | | |
Other(5) | | Other(5) | — | | | — | | | — | | — | | |
| Total | Total | $ | 83 | | $ | — | | $ | — | | $ | 83 | | | Total | $ | 178 | | | $ | 154 | | | $ | 24 | | | |
(1)The above tables dotable reflects activity for loans outstanding as of the end of the reporting period. The balances are not include loan modifications that meetsignificant as a percentage of the TDR relief criteria in the CARES Act or the interagency guidance.total carrying values of loans by class of receivable as of September 30, 2023.
(2)Commitments to lend to borrowers experiencing financial difficulty that were granted modifications totaled $1 billion as of September 30, 2023.
(3)The allowance for corporate loans, including modified loans, is based on the borrower’s overall financial performance. Charge-offs for amounts deemed uncollectible may be recorded at the time of the modification or may have already been recorded in prior periods such that no charge-off is required at the time of modification.
(4)Payment delays either for principal or interest payments had an immaterial financial impact.
(5)Other includes installment and other, lease financing and loans to government and official institutions.
The following table presents the Company’s corporate troubled debt restructurings (TDRs), under previous GAAP, prior to the Company’s adoption of ASU No. 2022-02 on January 1, 2023:
| | | | | | | | | | | | | | | | |
| For the Three and Nine Months Ended September 30, 2022 | | |
| In millions of dollars | Carrying value of TDRs modified during the period | TDRs involving changes in the amount and/or timing of principal payments(1) | TDRs involving changes in the amount and/or timing of interest payments(2) | TDRs
involving changes
in the amount
and/or timing of
both principal and
interest payments | | |
| Three Months Ended September 30, 2022 | | | | | | |
| Commercial and industrial | $ | 11 | | $ | — | | $ | — | | $ | 11 | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Mortgage and real estate | 1 | | 1 | | — | | — | | | |
Other(3) | 7 | | — | | — | | 7 | | | |
| Total | $ | 19 | | $ | 1 | | $ | — | | $ | 18 | | | |
| Nine Months Ended September 30, 2022 | | | | | | |
| Commercial and industrial | $ | 26 | | $ | — | | $ | — | | $ | 26 | | | |
| Mortgage and real estate | 1 | | 1 | | — | | — | | | |
Other(3) | 30 | | — | | — | | 30 | | | |
| Total | $ | 57 | | $ | 1 | | $ | — | | $ | 56 | | | |
(1) TDRs involving changes in the amount or timing of principal payments may involve principal forgiveness or deferral of periodic and/or final principal payments. Because forgiveness of principal is rare for corporate loans, modifications typically have little to no impact on the loans’ projected cash flows and thus little to no
impact on the allowance established for the loans. Charge-offs for amounts deemed uncollectible may be recorded at the time of the restructuring or may have already been recorded in prior periods such that no charge-off is required at the time of the modification.
(3)(2) TDRs involving changes in the amount or timing of interest payments may involve a below-market interest rate.
(3) Other includes installment and other, lease financing and loans to government and official institutions.
Performance of Modified Corporate Loans
The following table presents totalthe delinquencies of modified corporate loans to borrowers experiencing financial difficulty. It includes loans that were modified induring the nine months ended September 30, 2023:
| | | | | | | | | | | | | | | |
| | | As of September 30, 2023(1) |
| In millions of dollars | | Total | Current | 30–89 days past due | 90+ days
past due |
| | | | | |
| Commercial and industrial | | $ | 93 | | $ | 93 | | $ | — | | $ | — | |
| Financial institutions | | — | | — | | — | | — | |
| Mortgage and real estate | | 85 | | 85 | | — | | — | |
Other(2) | | — | | — | | — | | — | |
| Total | | $ | 178 | | $ | 178 | | $ | — | | $ | — | |
(1)Corporate loans are generally not modified as a TDR as well as those TDRsresult of their delinquency status; rather, they are modified because of events that have impacted the overall financial performance of the borrower. Corporate loans, if past due, are re-aged to current status upon modification.
(2)Other includes installment and other, lease financing and loans to government and official institutions.
Defaults of Modified Corporate Loans
No modified corporate loans to borrowers experiencing financial difficulty defaulted during the three and for which the payment default occurred within one year of a permanent modification.nine months ended September 30, 2023. Default is defined as 60 days past due, except for classifiably managed commercial banking loans, where default is defined as 90 days past due. For a modified corporate loan that is not collateral dependent, expected default rates are considered in the loan’s individually assessed ACL.
The following table presents the Company’s three and nine months ended September 30, 2022 corporate TDRs, under previous GAAP, prior to the Company’s adoption of ASU No. 2022-02 on January 1, 2023, that defaulted for which the payment default occurred within one year of a permanent modification. Default is defined as 60 days past due:
| | | | | | | | | | | | | | | | | | | | |
| | TDR loans that re-defaulted within one year of modification during the | | TDR loans that re-defaulted within one year of modification during the |
| In millions of dollars | TDR balances at September 30, 2022 | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | TDR balances at September 30, 2021 | Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 |
| Commercial and industrial | $ | 114 | | $ | — | | $ | — | | $ | 249 | | $ | — | | $ | — | |
| | | | | | |
| Mortgage and real estate | 14 | | — | | — | | 19 | | — | | — | |
| | | | | | |
| Other | 22 | | — | | — | | 36 | | — | | — | |
Total(1) | $ | 150 | | $ | — | | $ | — | | $ | 304 | | $ | — | | $ | — | |
| | | | | | | | | | | |
| | TDR loans that re-defaulted within one year of modification during the |
| In millions of dollars | TDR balances at September 30, 2022 | Three Months Ended
September 30, 2022 | Nine Months Ended
September 30, 2022 |
| Commercial and industrial | $ | 114 | | $ | — | | $ | — | |
| | | |
| Mortgage and real estate | 14 | | — | | — | |
| | | |
Other(1) | 22 | | — | | — | |
Total(2) | $ | 150 | | $ | — | | $ | — | |
(1) Other includes installment and other, lease financing and loans to government and official institutions.
(2) The above table reflects activity for loans outstanding that were considered TDRs as of the end of the reporting period.
Consumer Loans
Consumer loans represent loans and leases managed primarily by PBWM and Legacy Franchises (except Mexico SBMM). The tables below present details about these loans, including the following loan categories:
•Residential first mortgages and Home equity loans in North America offices primarily represent secured mortgage lending to customers of Retail banking and Global Wealth (primarily Private bank and Citigold).Wealth.
•Credit cards in North America offices primarily representsrepresent unsecured credit card lending to customers of Branded cards and Retail services.
•Personal, small business and other loans in North America isare primarily composed of classifiably managed loans to customers of Global Wealth (mostly within the Private bank) who are typically high credit quality borrowers that historically experienced minimal delinquencies and credit losses. Loans to these borrowers are generally well collateralized in the form of liquid securities and other forms of collateral.
•Residential first mortgages and Home equity loans in offices outside North America primarily represent secured mortgage lending to customers of Global Wealth (primarily Private bank and Citigold) as well as customers of Legacy Franchises.
•Credit cards in offices outside North America primarily represents unsecured credit card lending to customers of Legacy Franchises, primarily in Asia and Mexico.
•Personal, small business and other loans in offices outside North America is primarily composed of secured and unsecured loans to customers of PBWM and Legacy Franchises. A significant portion of PBWM loans are classifiably managed and represent loans to high credit quality Private bank customers who historically experienced minimal delinquencies and credit losses. Loans to these borrowers are generally well collateralized in the form of liquid securities and other forms of collateral.
The following tables provide Citi’s consumer loans by type:
Consumer Loans, Delinquencies and Non-Accrual Status at September 30, 2023
| | In millions of dollars at September 30, 2022 | Total current(1)(2) | 30–89 days past due(3)(4) | ≥ 90 days past due(3)(4) | Past due government guaranteed(5) | Total loans | Non-accrual loans for which there is no ACLL | Non-accrual loans for which there is an ACLL | Total
non-accrual | 90 days
past due
and accruing | |
| In millions of dollars | | In millions of dollars | Total current(1)(2) | 30–89 days past due(3)(4) | ≥ 90 days past due(3)(4) | Past due government guaranteed(5) | Total loans | Non-accrual loans for which there is no ACLL | Non-accrual loans for which there is an ACLL | Total
non-accrual | 90 days
past due
and accruing |
In North America offices(6) | In North America offices(6) | | | | | In North America offices(6) | | | | |
Residential first mortgages(7) | Residential first mortgages(7) | $ | 92,339 | | $ | 434 | | $ | 337 | | $ | 271 | | $ | 93,381 | | $ | 83 | | $ | 450 | | $ | 533 | | $ | 178 | | Residential first mortgages(7) | $ | 105,453 | | $ | 389 | | $ | 294 | | $ | 233 | | $ | 106,369 | | $ | 102 | | $ | 384 | | $ | 486 | | $ | 120 | |
Home equity loans(8)(9) | Home equity loans(8)(9) | 4,629 | | 26 | | 139 | | — | | 4,794 | | 52 | | 167 | | 219 | | — | | Home equity loans(8)(9) | 3,675 | | 32 | | 89 | | — | | 3,796 | | 47 | | 132 | | 179 | | — | |
| Credit cards | Credit cards | 138,030 | | 1,269 | | 1,105 | | — | | 140,404 | | — | | — | | — | | 1,105 | | Credit cards | 151,560 | | 2,093 | | 2,045 | | — | | 155,698 | | — | | — | | — | | 2,045 | |
Personal, small business and other(10) | Personal, small business and other(10) | 39,977 | | 55 | | 60 | | 18 | | 40,110 | | 2 | | 62 | | 64 | | 13 | | Personal, small business and other(10) | 36,447 | | 92 | | 49 | | 2 | | 36,590 | | 3 | | 56 | | 59 | | 5 | |
| Total | Total | $ | 274,975 | | $ | 1,784 | | $ | 1,641 | | $ | 289 | | $ | 278,689 | | $ | 137 | | $ | 679 | | $ | 816 | | $ | 1,296 | | Total | $ | 297,135 | | $ | 2,606 | | $ | 2,477 | | $ | 235 | | $ | 302,453 | | $ | 152 | | $ | 572 | | $ | 724 | | $ | 2,170 | |
In offices outside North America(6) | In offices outside North America(6) | | | | | | | In offices outside North America(6) | | | | | | |
Residential mortgages(9)(7) | Residential mortgages(9)(7) | $ | 27,144 | | $ | 51 | | $ | 86 | | $ | — | | $ | 27,281 | | $ | — | | $ | 295 | | $ | 295 | | $ | 10 | | Residential mortgages(9)(7) | $ | 26,268 | | $ | 49 | | $ | 72 | | $ | — | | $ | 26,389 | | $ | — | | $ | 258 | | $ | 258 | | $ | 20 | |
| Credit cards | Credit cards | 11,508 | | 131 | | 125 | | — | | 11,764 | | — | | 103 | | 103 | | 51 | | Credit cards | 13,179 | | 192 | | 202 | | — | | 13,573 | | — | | 187 | | 187 | | 59 | |
Personal, small business and other(10) | Personal, small business and other(10) | 39,658 | | 111 | | 80 | | — | | 39,849 | | 3 | | 184 | | 187 | | — | | Personal, small business and other(10) | 35,154 | | 104 | | 41 | | — | | 35,299 | | — | | 133 | | 133 | | — | |
| Total | Total | $ | 78,310 | | $ | 293 | | $ | 291 | | $ | — | | $ | 78,894 | | $ | 3 | | $ | 582 | | $ | 585 | | $ | 61 | | Total | $ | 74,601 | | $ | 345 | | $ | 315 | | $ | — | | $ | 75,261 | | $ | — | | $ | 578 | | $ | 578 | | $ | 79 | |
Total Citigroup(11) | $ | 353,285 | | $ | 2,077 | | $ | 1,932 | | $ | 289 | | $ | 357,583 | | $ | 140 | | $ | 1,261 | | $ | 1,401 | | $ | 1,357 | | |
Total Citigroup(11)(12) | | Total Citigroup(11)(12) | $ | 371,736 | | $ | 2,951 | | $ | 2,792 | | $ | 235 | | $ | 377,714 | | $ | 152 | | $ | 1,150 | | $ | 1,302 | | $ | 2,249 | |
Consumer Loans, Delinquencies and Non-Accrual Status at December 31, 2022
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| In millions of dollars | Total current(1)(2) | 30–89 days past due(3)(4) | ≥ 90 days past due(3)(4) | Past due government guaranteed(5) | Total
loans | Non-accrual loans for which there is no ACLL | Non-accrual loans for which there is an ACLL | Total
non-accrual | 90 days
past due
and accruing |
In North America offices(6) | | | | | | | | | |
Residential first mortgages(7) | $ | 95,023 | | $ | 421 | | $ | 316 | | $ | 279 | | $ | 96,039 | | $ | 86 | | $ | 434 | | $ | 520 | | $ | 163 | |
Home equity loans(8)(9) | 4,407 | | 38 | | 135 | | — | | 4,580 | | 51 | | 151 | | 202 | | — | |
| Credit cards | 147,717 | | 1,511 | | 1,415 | | — | | 150,643 | | — | | — | | — | | 1,415 | |
Personal, small business and other(10) | 37,635 | | 88 | | 22 | | 7 | | 37,752 | | 3 | | 23 | | 26 | | 11 | |
| Total | $ | 284,782 | | $ | 2,058 | | $ | 1,888 | | $ | 286 | | $ | 289,014 | | $ | 140 | | $ | 608 | | $ | 748 | | $ | 1,589 | |
In offices outside North America(6) | | | | | | | | | |
Residential mortgages(7) | $ | 27,946 | | $ | 62 | | $ | 106 | | $ | — | | $ | 28,114 | | $ | — | | $ | 305 | | $ | 305 | | $ | 13 | |
| Credit cards | 12,659 | | 147 | | 149 | | — | | 12,955 | | — | | 127 | | 127 | | 56 | |
Personal, small business and other(10) | 37,869 | | 105 | | 10 | | — | | 37,984 | | — | | 137 | | 137 | | — | |
| Total | $ | 78,474 | | $ | 314 | | $ | 265 | | $ | — | | $ | 79,053 | | $ | — | | $ | 569 | | $ | 569 | | $ | 69 | |
Total Citigroup(11)(12) | $ | 363,256 | | $ | 2,372 | | $ | 2,153 | | $ | 286 | | $ | 368,067 | | $ | 140 | | $ | 1,177 | | $ | 1,317 | | $ | 1,658 | |
(1)Loans less than 30 days past due are presented as current.
(2)Includes $241$222 million and $237 million at September 30, 2023 and December 31, 2022, respectively, of residential first mortgages recorded at fair value.
(3)Excludes loans guaranteed by U.S. government-sponsored agencies. Excludes delinquencies on $33.9$29.8 billion and $19.4$17.0 billion of classifiably managed Private bank loans in North America and outside North America, respectively.respectively, at September 30, 2023. Excludes delinquencies on $31.5 billion and $17.8 billion of classifiably managed Private bank loans in North America and outside North America, respectively, at December 31, 2022.
(4)Loans modified under Citi’s COVID-19 consumer relief programs continue to be reported in the same delinquency bucket they were in at the time of modification. Most modified loans in North America would not be reported as 30–89 or 90+ days past due for the duration of the programs (which have various durations, and certain of which may be renewed).
(5)Consists of loans that are guaranteed by U.S. government-sponsored agencies that are 30–89 days past due of $0.1 billion and $0.1 billion and 90 days or more past due of $0.1 billion and $0.2 billion.billion at September 30, 2023 and December 31, 2022, respectively.
(6)North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America.
(7)Includes approximately $0.2 billion and $0.0 billion of residential first mortgage loans in process of foreclosure in North America and outside North America, respectively, and $20.0 billion of residential mortgages outside North America related to the Global Wealth business at September 30, 2023. Includes approximately $0.1 billion and $0.0 billion of residential first mortgage loans in process of foreclosure in North America and outside North America, respectively, and $19.3$19.8 billion of residential mortgages outside North America related to the Global Wealth business.business at December 31, 2022.
(8)Includes approximately $0.1 billion and $0.1 billion at September 30, 2023 and December 31, 2022, respectively, of home equity loans in process of foreclosure.
(9)Fixed-rate home equity loans and loans extended under home equity lines of credit, which are typically in junior lien positions.
(10)Includes loans related to theAs of September 30, 2023, Global Wealth business: $36.6 billionbusiness in North America approximately $33.9includes $32.3 billion of loans, of which $29.8 billion are classifiably managed and as of September 30, 2022 approximatelywith 96% were rated investment grade;grade, and $28.5 billionGlobal Wealth business outside North America approximately $19.4includes $24.9 billion of loans, of which $17.0 billion are classifiably managed and as of September 30, 2022 approximately 94% werewith 93% rated investment grade. TheAs of December 31, 2022, Global Wealth business in North America includes $34.0 billion of loans, of which $31.5 billion are classifiably managed portionwith 98% rated investment grade, and Global Wealth business outside North America includes $26.6 billion of these loans, isof which $17.8 billion are classifiably managed with 94% rated investment grade. Such loans are shown as “current” because the delinquency status is not applicable, since these loans are primarily evaluated for credit risk based on their internal risk classification.above.
(11)Consumer loans are net of unearned income of $671 million.$789 million and $712 million at September 30, 2023 and December 31, 2022, respectively. Unearned income on consumer loans primarily represents unamortized origination fees and costs, premiums and discounts.
Consumer Loans, Delinquencies and Non-Accrual Status
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| In millions of dollars at December 31, 2021 | Total current(1)(2) | 30–89 days past due(3)(4)(5) | ≥ 90 days past due(3)(4)(5) | Past due government guaranteed(5)(6) | Total
loans | Non-accrual loans for which there is no ACLL | Non-accrual loans for which there is an ACLL | Total
non-accrual | 90 days
past due
and accruing |
In North America offices(7) | | | | | | | | | |
Residential first mortgages(8) | $ | 82,087 | | $ | 381 | | $ | 499 | | $ | 394 | | $ | 83,361 | | $ | 134 | | $ | 559 | | $ | 693 | | $ | 282 | |
Home equity loans(9)(10) | 5,546 | | 43 | | 156 | | — | | 5,745 | | 64 | | 221 | | 285 | | — | |
| Credit cards | 132,050 | | 947 | | 871 | | — | | 133,868 | | — | | — | | — | | 871 | |
Personal, small business and other(11) | 40,533 | | 126 | | 16 | | 38 | | 40,713 | | 2 | | 70 | | 72 | | 30 | |
| Total | $ | 260,216 | | $ | 1,497 | | $ | 1,542 | | $ | 432 | | $ | 263,687 | | $ | 200 | | $ | 850 | | $ | 1,050 | | $ | 1,183 | |
In offices outside North America(7) | | | | | | | | | |
Residential mortgages(8) | $ | 37,566 | | $ | 165 | | $ | 158 | | $ | — | | $ | 37,889 | | $ | — | | $ | 409 | | $ | 409 | | $ | 10 | |
| Credit cards | 17,428 | | 192 | | 188 | | — | | 17,808 | | — | | 140 | | 140 | | 133 | |
Personal, small business and other(11) | 56,930 | | 145 | | 75 | | — | | 57,150 | | — | | 227 | | 227 | | — | |
| Total | $ | 111,924 | | $ | 502 | | $ | 421 | | $ | — | | $ | 112,847 | | $ | — | | $ | 776 | | $ | 776 | | $ | 143 | |
Total Citigroup(12) | $ | 372,140 | | $ | 1,999 | | $ | 1,963 | | $ | 432 | | $ | 376,534 | | $ | 200 | | $ | 1,626 | | $ | 1,826 | | $ | 1,326 | |
(1)(12)Loans less than 30 days past dueNot included in the balances above are presented as current.
(2)Includes $12 million of residential first mortgages recorded at fair value.
(3)Excludes loans guaranteed by U.S. government-sponsored agencies. Excludes $35.3approximately $1 billion and $24.5$1 billion of classifiably managed Private bankaccrued interest receivable at September 30, 2023 and December 31, 2022, respectively, which are included in Other assets on the Consolidated Balance Sheet, except for credit card loans in North America(which include accrued interest and outside North America, respectively.
(4)Loans modified under Citi’s consumer relief programs continue to be reported in the same delinquency bucket they were in at the time of modification, and thus almost all would not be reported as 30–89 or 90+ days past due for the duration of the programs (which have various durations, and certain of which may be renewed)fees).
(5)ConformedDuring the three and nine months ended September 30, 2023, the Company reversed accrued interest (primarily related to be consistent with the current period’s delineation between delinquency-managed and classifiably managed loans.
(6)Consistscredit cards) of loans that are guaranteed by U.S. government-sponsored agencies that are 30–89 days past due of $0.1approximately $0.3 billion and 90 days or more past due$0.8 billion, respectively, and during the three and nine months ended September 30, 2022, the Company reversed accrued interest of $0.3 billion.
(7)approximately $0.2 billion and $0.5 billion, respectively. These reversals of accrued interest are reflected as a reduction to North America includesInterest revenue in the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America.
(8)Includes approximately $0.1 billionConsolidated Statement of residential first mortgage loans in process of foreclosure, and $19.8 billion of residential mortgages outside North America related to the Global Wealth reporting unit.
(9)Includes approximately $0.1 billion of home equity loans in process of foreclosure.
(10)Fixed-rate home equity loans and loans extended under home equity lines of credit, which are typically in junior lien positions.
(11)Includes loans related to the Global Wealth business: $37.9 billion in North America, approximately $35.3 billion of which are classifiably managed, and as of December 31, 2021 approximately 95% were rated investment grade; and $34.6 billion outside North America, approximately $24.5 billion of which are classifiably managed, and as of December 31, 2021 approximately 94% were rated investment grade. The classifiably managed portion of these loans is shown as “current” because the delinquency status is not applicable, since these loans are primarily evaluated for credit risk based on their internal risk classification.
(12)Consumer loans are net of unearned income of $629 million. Unearned income on consumer loans primarily represents unamortized origination fees and costs, premiums and discounts.Income.
Interest Income Recognized for Non-Accrual Consumer Loans
| | In millions of dollars | In millions of dollars | Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | In millions of dollars | Three Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 2022 |
In North America offices(1) | In North America offices(1) | | | | In North America offices(1) | | | |
| Residential first mortgages | Residential first mortgages | $ | 3 | | $ | 3 | | $ | 9 | | $ | 10 | | Residential first mortgages | $ | 2 | | $ | 3 | | $ | 8 | | $ | 9 | |
| Home equity loans | Home equity loans | 1 | | 2 | | 3 | | 6 | | Home equity loans | 2 | | 1 | | 5 | | 3 | |
| Credit cards | Credit cards | — | | — | | — | | — | | Credit cards | — | | — | | — | | — | |
| Personal, small business and other | Personal, small business and other | 1 | | — | | 2 | | — | | Personal, small business and other | 1 | | 1 | | 2 | | 2 | |
| Total | Total | $ | 5 | | $ | 5 | | $ | 14 | | $ | 16 | | Total | $ | 5 | | $ | 5 | | $ | 15 | | $ | 14 | |
In offices outside North America(1) | In offices outside North America(1) | | | | In offices outside North America(1) | | | |
| Residential mortgages | Residential mortgages | $ | 2 | | $ | — | | $ | 2 | | $ | — | | Residential mortgages | $ | 2 | | $ | 2 | | $ | 7 | | $ | 2 | |
| Credit cards | Credit cards | — | | — | | — | | — | | Credit cards | — | | — | | — | | — | |
| Personal, small business and other | Personal, small business and other | — | | — | | — | | — | | Personal, small business and other | — | | — | | — | | — | |
| Total | Total | $ | 2 | | $ | — | | $ | 2 | | $ | — | | Total | $ | 2 | | $ | 2 | | $ | 7 | | $ | 2 | |
| Total Citigroup | Total Citigroup | $ | 7 | | $ | 5 | | $ | 16 | | $ | 16 | | Total Citigroup | $ | 7 | | $ | 7 | | $ | 22 | | $ | 16 | |
(1)North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America.
During the three and nine months ended September 30, 2023, the Company sold and/or reclassified to held-for-sale $1 million and $1.8 billion (a mortgage portfolio, which was moved to HFS in 1Q23 and subsequently sold in 2Q23) of consumer loans, respectively. During the three and nine months ended September 30, 2022, the Company sold and/or reclassified to HFSheld-for-sale $0 million and $337 million of consumer loans, respectively. DuringThe increase was due to the three and nine months ended September 30, 2021, the Company sold and/or reclassifiedreclassification of a portfolio to HFS $346 million and $1,449 million of consumer loans, respectively. Loans held by a business for sale are not included in the above.first quarter of 2023. The Company did not have significant purchases of consumer loans classified as held-for-investment for the three and nine months ended September 30, 20222023 or 2021.2022. Loans held by a business for sale are not included in the above since they have been reclassified to Other assets. See Note 2 for additional information regarding Citigroup’s businesses for sale.held-for-sale.
Consumer Credit Scores (FICO)
The following tables provide details on the Fair Isaac Corporation (FICO) scores for Citi’s U.S. consumer loan portfolio based on end-of-period receivables by year of origination. FICO scores are updated monthly for substantially all of the portfolio or, otherwise, on a quarterly basis for the remaining portfolio. ForLoans that did not have FICO scores as of the prior period have been updated with FICO scores as they become available. With respect to Citi’s $80.4 billion and $114.3 billion in the consumer loan portfolio outside of the U.S. as of September 30, 20222023 and
December 31, 2021, respectively,2022 ($76.8 billion and $80.5 billion, respectively), various country-specific or regional credit risk metrics and acquisition and behavior scoring models are leveraged as one of the factors to evaluate the credit quality of customers (for additional information on loans outside of the U.S., see “Consumer Loans and Ratios Outside of North America” below). As a result, details of relevant credit quality indicators for those loans are not comparable to the below FICO score distribution for the U.S. portfolio.
| FICO score distribution—U.S. portfolio(2)(1) | FICO score distribution—U.S. portfolio(2)(1) | September 30, 2022 | FICO score distribution—U.S. portfolio(2)(1) | September 30, 2023 |
| In millions of dollars | In millions of dollars | Less than
680 | 680
to 760 | Greater
than 760 | Classifiably managed(3) | FICO not available(4) | Total
loans | In millions of dollars | Less than
680 | 680
to 760 | Greater
than 760 | Classifiably managed(2) | FICO not available(3) | Total
loans |
| Residential first mortgages | Residential first mortgages | | Residential first mortgages | |
| 2023 | | 2023 | $ | 300 | | $ | 4,526 | | $ | 9,067 | | |
| 2022 | 2022 | $ | 504 | | $ | 6,083 | | $ | 10,880 | | | 2022 | 698 | | 6,331 | | 13,766 | | |
| 2021 | 2021 | 628 | | 6,029 | | 12,782 | | | 2021 | 592 | | 5,574 | | 12,503 | | |
| 2020 | 2020 | 472 | | 4,806 | | 10,893 | | | 2020 | 412 | | 4,235 | | 10,738 | | |
| 2019 | 2019 | 302 | | 2,673 | | 5,424 | | | 2019 | 280 | | 2,367 | | 5,239 | | |
| 2018 | 302 | | 1,110 | | 1,908 | | | |
| Prior | Prior | 2,043 | | 6,754 | | 13,031 | | | Prior | 2,073 | | 6,980 | | 13,472 | | |
| Total residential first mortgages | Total residential first mortgages | $ | 4,251 | | $ | 27,455 | | $ | 54,918 | | $ | — | | $ | 6,757 | | $ | 93,381 | | Total residential first mortgages | $ | 4,355 | | $ | 30,013 | | $ | 64,785 | | $ | — | | $ | 7,216 | | $ | 106,369 | |
| Home equity loans (pre-reset) | Home equity loans (pre-reset) | $ | 237 | | $ | 913 | | $ | 1,280 | | | Home equity loans (pre-reset) | $ | 418 | | $ | 1,079 | | $ | 1,745 | | |
| Home equity loans (post-reset) | Home equity loans (post-reset) | 496 | | 890 | | 948 | | | Home equity loans (post-reset) | 74 | | 76 | | 51 | | |
| Total home equity loans | $ | 733 | | $ | 1,803 | | $ | 2,228 | | $ | — | | $ | 30 | | $ | 4,794 | | |
Credit cards(5) | $ | 26,172 | | $ | 55,368 | | $ | 56,529 | | $ | — | | $ | 1,787 | | $ | 139,856 | | |
| | Personal, small business and other | | |
| Home equity term loans | | Home equity term loans | 87 | | 131 | | 102 | | |
| 2023 | | 2023 | — | | — | | — | | |
| 2022 | 2022 | $ | 162 | | $ | 397 | | $ | 594 | | | 2022 | — | | — | | — | | |
| 2021 | 2021 | 99 | | 194 | | 250 | | | 2021 | — | | — | | 1 | | |
| 2020 | 2020 | 17 | | 24 | | 36 | | | 2020 | — | | 2 | | 2 | | |
| 2019 | 2019 | 25 | | 29 | | 36 | | | 2019 | 1 | | 1 | | 1 | | |
| 2018 | 15 | | 15 | | 15 | | | |
| Prior | Prior | 124 | | 190 | | 145 | | | Prior | 86 | | 128 | | 98 | | |
Total personal, small business and other(6) | $ | 442 | | $ | 849 | | $ | 1,076 | | $ | 33,910 | | $ | 2,922 | | $ | 39,199 | | |
| Total home equity loans | | Total home equity loans | $ | 579 | | $ | 1,286 | | $ | 1,898 | | $ | — | | $ | 33 | | $ | 3,796 | |
| Credit cards | | Credit cards | $ | 30,570 | | $ | 60,462 | | $ | 60,592 | | |
Revolving loans converted to term loans(4) | | Revolving loans converted to term loans(4) | 1,013 | | 375 | | 53 | | |
Total credit cards(5) | | Total credit cards(5) | $ | 31,583 | | $ | 60,837 | | $ | 60,645 | | $ | — | | $ | 2,027 | | $ | 155,092 | |
| | Personal, small business and other | | Personal, small business and other | |
| 2023 | | 2023 | $ | 84 | | $ | 304 | | $ | 633 | | |
| 2022 | | 2022 | 293 | | 440 | | 575 | | |
| 2021 | | 2021 | 77 | | 104 | | 127 | | |
| 2020 | | 2020 | 9 | | 11 | | 16 | | |
| 2019 | | 2019 | 10 | | 10 | | 11 | | |
| Prior | | Prior | 131 | | 177 | | 130 | | |
Total personal, small business and other(6)(7) | | Total personal, small business and other(6)(7) | $ | 604 | | $ | 1,046 | | $ | 1,492 | | $ | 29,828 | | $ | 2,721 | | $ | 35,691 | |
| Total | Total | $ | 31,598 | | $ | 85,475 | | $ | 114,751 | | $ | 33,910 | | $ | 11,496 | | $ | 277,230 | | Total | $ | 37,121 | | $ | 93,182 | | $ | 128,820 | | $ | 29,828 | | $ | 11,997 | | $ | 300,948 | |
| FICO score distribution—U.S. portfolio(2)(1) | FICO score distribution—U.S. portfolio(2)(1) | December 31, 2021 | FICO score distribution—U.S. portfolio(2)(1) | December 31, 2022 |
| In millions of dollars | In millions of dollars | Less than
680 | 680
to 760 | Greater
than 760 | Classifiably managed(3) | FICO not available(4) | Total
loans | In millions of dollars | Less than
680 | 680
to 760 | Greater
than 760 | Classifiably managed(2) | FICO not available(3) | Total
loans |
| Residential first mortgages | Residential first mortgages | | Residential first mortgages | |
| 2022 | | 2022 | $ | 691 | | $ | 7,530 | | $ | 12,928 | | |
| 2021 | 2021 | $ | 626 | | $ | 6,729 | | $ | 12,349 | | | 2021 | 639 | 5,933 | 12,672 | |
| 2020 | 2020 | 508 | 5,102 | 12,153 | | 2020 | 431 | 4,621 | 10,936 | |
| 2019 | 2019 | 373 | 3,074 | 6,167 | | 2019 | 321 | 2,505 | 5,445 | |
| 2018 | 2018 | 394 | 1,180 | 2,216 | | 2018 | 302 | 1,072 | 1,899 | |
| 2017 | 343 | 1,455 | 2,568 | | |
| Prior | Prior | 2,053 | 6,540 | 12,586 | | Prior | 2,020 | 6,551 | 12,649 | |
| Total residential first mortgages | Total residential first mortgages | $ | 4,297 | | $ | 24,080 | | $ | 48,039 | | $ | — | | $ | 6,945 | | $ | 83,361 | | Total residential first mortgages | $ | 4,404 | | $ | 28,212 | | $ | 56,529 | | | $ | 6,894 | | $ | 96,039 | |
| Home equity loans (pre-reset) | $ | 263 | | $ | 1,030 | | $ | 1,539 | | | |
| Home equity loans (post-reset) | 639 | | 1,047 | | 1,160 | | | |
| Total home equity loans | $ | 902 | | $ | 2,077 | | $ | 2,699 | | $ | — | | $ | 67 | | $ | 5,745 | | |
Credit cards(5) | $ | 23,115 | | $ | 52,907 | | $ | 55,137 | | $ | — | | $ | 2,192 | | $ | 133,351 | | |
| Personal, small business and other | | |
| Home equity line of credit (pre-reset) | | Home equity line of credit (pre-reset) | $ | 552 | | $ | 1,536 | | $ | 1,876 | | |
| Home equity line of credit (post-reset) | | Home equity line of credit (post-reset) | 62 | | 65 | | 40 | | |
| Home equity term loans | | Home equity term loans | 106 | | 151 | | 117 | | |
| 2022 | | 2022 | — | | — | | — | | |
| 2021 | 2021 | $ | 59 | | $ | 201 | | $ | 319 | | | 2021 | — | | 1 | | 1 | | |
| 2020 | 2020 | 22 | | 41 | | 64 | | | 2020 | 1 | | 2 | | 2 | | |
| 2019 | 2019 | 42 | | 53 | | 68 | | | 2019 | 1 | | 2 | | 2 | | |
| 2018 | 2018 | 34 | | 35 | | 37 | | | 2018 | 1 | | 2 | | 1 | | |
| 2017 | 7 | | 8 | | 9 | | | |
| Prior | Prior | 120 | | 179 | | 143 | | | Prior | 103 | | 144 | | 111 | | |
Total personal, small business and other(6) | $ | 284 | | $ | 517 | | $ | 640 | | $ | 35,324 | | $ | 3,041 | | $ | 39,806 | | |
| Total home equity loans | | Total home equity loans | $ | 720 | | $ | 1,752 | | $ | 2,033 | | | $ | 75 | | $ | 4,580 | |
| Credit cards | | Credit cards | $ | 27,901 | | $ | 58,213 | | $ | 60,896 | | |
Revolving loans converted to term loans(4) | | Revolving loans converted to term loans(4) | 766 | | 354 | | 54 | | |
Total credit cards(5) | | Total credit cards(5) | $ | 28,667 | | $ | 58,567 | | $ | 60,950 | | | $ | 1,914 | | $ | 150,098 | |
| Personal, small business and other | | Personal, small business and other | |
| 2022 | | 2022 | $ | 247 | | $ | 546 | | $ | 800 | | |
| 2021 | | 2021 | 96 | | 170 | | 210 | | |
| 2020 | | 2020 | 15 | | 20 | | 30 | | |
| 2019 | | 2019 | 21 | | 23 | | 28 | | |
| 2018 | | 2018 | 10 | | 10 | | 9 | | |
| Prior | | Prior | 126 | | 190 | | 144 | | |
Total personal, small business and other(6)(7) | | Total personal, small business and other(6)(7) | $ | 515 | | $ | 959 | | $ | 1,221 | | $ | 31,478 | | $ | 2,639 | | $ | 36,812 | |
| Total | Total | $ | 28,598 | | $ | 79,581 | | $ | 106,515 | | $ | 35,324 | | $ | 12,245 | | $ | 262,263 | | Total | $ | 34,306 | | $ | 89,490 | | $ | 120,733 | | $ | 31,478 | | $ | 11,522 | | $ | 287,529 | |
(1) The FICO bands in the tables are consistent with general industry peer presentations.
(2) FICO scores are updated on either a monthly or quarterly basis. For updates that are made only quarterly, certain current-period loans by year of origination are greater than those disclosed in the prior periods. Loans that did not have FICO scores as of the prior period have been updated with FICO scores as they become available.
(3) These personal, small business and other loans without a FICO score available include $33.9$29.8 billion and $35.3$31.5 billion of Private bank loans as of September 30, 20222023 and December 31, 2021,2022, respectively, which are classifiably managed within Global Wealth and are primarily evaluated for credit risk based on their internal risk ratings. As of September 30, 20222023 and December 31, 2021,2022, approximately 96% and 95%98% of these loans, respectively, were rated investment grade.
(4)(3) FICO scores not available related to loans guaranteed by government-sponsored enterprises for which FICO scores are generally not utilized.
(4) Not included in the tables above are $68 million and $75 million of revolving credit card loans outside of the U.S. that were converted to term loans as of September 30, 2023 and December 31, 2022, respectively.
(5) Excludes $548$606 million and $517$545 million of balances related to Canada for September 30, 20222023 and December 31, 2021,2022, respectively.
(6) Excludes $911$899 million and $907$940 million of balances related to Canada for September 30, 20222023 and December 31, 2021,2022, respectively.
(7) Includes approximately $42 million and $67 million of personal revolving loans that were converted to term loans for September 30, 2023 and December 31, 2022, respectively.
Consumer Gross Credit Losses
The following table provides details on gross credit losses recognized during the nine months ended September 30, 2023, by year of loan origination:
| | | | | |
| In millions of dollars | Nine Months Ended September 30, 2023 |
| Residential first mortgages | |
| 2023 | $ | — | |
| 2022 | 2 | |
| 2021 | — | |
| 2020 | 1 | |
| 2019 | 5 | |
| Prior | 31 | |
| Total residential first mortgages | $ | 39 | |
| Home equity line of credit (pre-reset) | $ | 2 | |
| Home equity line of credit (post-reset) | — | |
| Home equity term loans | 2 | |
| |
| |
| |
| |
| |
| |
| Total home equity loans | $ | 4 | |
| Credit cards | $ | 4,598 | |
| Revolving loans converted to term loans | 132 | |
| Total credit cards | $ | 4,730 | |
| |
| Personal, small business and other | |
| 2023 | $ | 110 | |
| 2022 | 146 | |
| 2021 | 83 | |
| 2020 | 34 | |
| 2019 | 38 | |
| Prior | 132 | |
| Total personal, small business and other | $ | 543 | |
| Total Citigroup | $ | 5,316 | |
Loan-to-Value (LTV) Ratios—U.S. Consumer Mortgages
LTV ratios (loan balance divided by appraised value) are calculated at origination and updated by applying market price data.
The following tables provide details on the LTV ratios for Citi’s U.S. consumer mortgage portfolioportfolios by year of origination. LTV ratios are updated monthly using the most recent Core Logic Home Price Index data available for substantially all of the portfolio, applied at the Metropolitan Statistical Area level, if available, or the state level if not. The remainder of the portfolio is updated in a similar manner using the Federal Housing Finance Agency indices.
| | | | | | | | | | | | | | | | | |
LTV distribution—U.S. portfolio | September 30, 2022 | | |
| In millions of dollars | Less than
or equal
to 80% | > 80% but less
than or equal to 100% | Greater
than
100% | LTV not available(1) | Total |
| Residential first mortgages | | | | | |
| 2022 | $ | 14,631 | | $ | 3,653 | | $ | 3 | | | |
| 2021 | 19,790 | | 737 | | 31 | | | |
| 2020 | 17,274 | | 138 | | — | | | |
| 2019 | 8,948 | | 111 | | 26 | | | |
| 2018 | 3,667 | | 67 | | 8 | | | |
| Prior | 23,077 | | 130 | | 82 | | | |
| Total residential first mortgages | $ | 87,387 | | $ | 4,836 | | $ | 150 | | $ | 1,008 | | $ | 93,381 | |
| Home equity loans (pre-reset) | $ | 2,278 | | $ | 28 | | $ | 58 | | | |
| Home equity loans (post-reset) | 2,271 | | 22 | | 31 | | | |
| Total home equity loans | $ | 4,549 | | $ | 50 | | $ | 89 | | $ | 106 | | $ | 4,794 | |
| Total | $ | 91,936 | | $ | 4,886 | | $ | 239 | | $ | 1,114 | | $ | 98,175 | |
| | | | | | | | | | | | | | | | | |
LTV distribution—U.S. portfolio | December 31, 2021 | | |
| In millions of dollars | Less than
or equal
to 80% | > 80% but less
than or equal to 100% | Greater
than
100% | LTV not available(1) | Total |
| Residential first mortgages | | | | | |
| 2021 | $ | 18,107 | | $ | 2,723 | | $ | 34 | | | |
| 2020 | 18,715 | | 446 | | — | | | |
| 2019 | 10,047 | | 269 | | 29 | | | |
| 2018 | 4,117 | | 136 | | 11 | | | |
| 2017 | 4,804 | | 103 | | 4 | | | |
| Prior | 22,161 | | 128 | | 14 | | | |
| Total residential first mortgages | $ | 77,951 | | $ | 3,805 | | $ | 92 | | $ | 1,513 | | $ | 83,361 | |
| Home equity loans (pre-reset) | $ | 2,637 | | $ | 46 | | $ | 69 | | | |
| Home equity loans (post-reset) | 2,751 | | 52 | | 32 | | | |
| Total home equity loans | $ | 5,388 | | $ | 98 | | $ | 101 | | $ | 158 | | $ | 5,745 | |
| Total | $ | 83,339 | | $ | 3,903 | | $ | 193 | | $ | 1,671 | | $ | 89,106 | |
| | | | | | | | | | | | | | | | | |
LTV distribution—U.S. portfolio | September 30, 2023 | | |
| In millions of dollars | Less than
or equal
to 80% | > 80% but less
than or equal to 100% | Greater
than
100% | LTV not available(1) | Total |
| Residential first mortgages | | | | | |
| 2023 | $ | 11,461 | | $ | 2,668 | | $ | 8 | | | |
| 2022 | 17,794 | | 4,057 | | 42 | | | |
| 2021 | 19,047 | | 663 | | 33 | | | |
| 2020 | 16,325 | | 241 | | 1 | | | |
| 2019 | 8,306 | | 182 | | 26 | | | |
| Prior | 24,138 | | 197 | | 75 | | | |
| Total residential first mortgages | $ | 97,071 | | $ | 8,008 | | $ | 185 | | $ | 1,105 | | $ | 106,369 | |
| Home equity loans (pre-reset) | $ | 2,846 | | $ | 19 | | $ | 7 | | | |
| Home equity loans (post-reset) | 486 | | 6 | | 12 | | | |
| Total home equity loans | $ | 3,332 | | $ | 25 | | $ | 19 | | $ | 420 | | $ | 3,796 | |
| Total | $ | 100,403 | | $ | 8,033 | | $ | 204 | | $ | 1,525 | | $ | 110,165 | |
| | | | | | | | | | | | | | | | | |
LTV distribution—U.S. portfolio | December 31, 2022 | | |
| In millions of dollars | Less than
or equal
to 80% | > 80% but less
than or equal to 100% | Greater
than
100% | LTV not available(1) | Total |
| Residential first mortgages | | | | | |
| 2022 | $ | 15,644 | | $ | 6,497 | | $ | 40 | | | |
| 2021 | 19,104 | | 1,227 | | 33 | | | |
| 2020 | 16,935 | | 267 | | 1 | | | |
| 2019 | 8,789 | | 140 | | 23 | | | |
| 2018 | 3,598 | | 74 | | 9 | | | |
| Prior | 22,367 | | 132 | | 74 | | | |
| Total residential first mortgages | $ | 86,437 | | $ | 8,337 | | $ | 180 | | $ | 1,085 | | $ | 96,039 | |
| Home equity loans (pre-reset) | $ | 3,677 | | $ | 36 | | $ | 56 | | | |
| Home equity loans (post-reset) | 627 | | 12 | | 27 | | | |
| Total home equity loans | $ | 4,304 | | $ | 48 | | $ | 83 | | $ | 145 | | $ | 4,580 | |
| Total | $ | 90,741 | | $ | 8,385 | | $ | 263 | | $ | 1,230 | | $ | 100,619 | |
(1)Residential first mortgages with no LTV information available are primarily due toincludes government-guaranteed loans that do not require LTV information for credit risk assessment and fair value loans.
Loan-to-Value (LTV) Ratios—Outside of U.S. Consumer Mortgages
The following tables provide details on the LTV ratios for Citi’s consumer mortgage portfolio outside of the U.S. by year of origination:
| LTV distribution—outside of U.S. portfolio(1) | LTV distribution—outside of U.S. portfolio(1) | September 30, 2022 | | LTV distribution—outside of U.S. portfolio(1) | September 30, 2023 | |
| In millions of dollars | In millions of dollars | Less than
or equal
to 80% | > 80% but less
than or equal to 100% | Greater
than
100% | LTV not available | Total | In millions of dollars | Less than
or equal
to 80% | > 80% but less
than or equal to 100% | Greater
than
100% | LTV not available | Total |
| Residential mortgages | Residential mortgages | | Residential mortgages | |
| 2023 | | 2023 | $ | 2,304 | | $ | 883 | | $ | — | | |
| 2022 | 2022 | $ | 2,347 | | $ | 865 | | $ | — | | | 2022 | 3,303 | | 957 | | 187 | | |
| 2021 | 2021 | 4,316 | | 1,076 | | 3 | | | 2021 | 3,467 | | 928 | | 187 | | |
| 2020 | 2020 | 3,653 | | 342 | | — | | | 2020 | 2,494 | | 446 | | — | | |
| 2019 | 2019 | 3,243 | | 62 | | 1 | | | 2019 | 2,622 | | 68 | | — | | |
| 2018 | 2,193 | | 7 | | — | | | |
| Prior | Prior | 8,873 | | 34 | | 8 | | | Prior | 8,322 | | 45 | | 3 | | |
| Total | Total | $ | 24,625 | | $ | 2,386 | | $ | 12 | | $ | 258 | | $ | 27,281 | | Total | $ | 22,512 | | $ | 3,327 | | $ | 377 | | $ | 173 | | $ | 26,389 | |
| LTV distribution—outside of U.S. portfolio(1) | LTV distribution—outside of U.S. portfolio(1) | December 31, 2021 | | LTV distribution—outside of U.S. portfolio(1) | December 31, 2022 | |
| In millions of dollars | In millions of dollars | Less than
or equal
to 80% | > 80% but less
than or equal to 100% | Greater
than
100% | LTV not available | Total | In millions of dollars | Less than
or equal
to 80% | > 80% but less
than or equal to 100% | Greater
than
100% | LTV not available | Total |
| Residential mortgages | Residential mortgages | | Residential mortgages | |
| 2022 | | 2022 | $ | 3,106 | | $ | 975 | | $ | 294 | | |
| 2021 | 2021 | $ | 6,334 | | $ | 989 | | $ | — | | | 2021 | 4,144 | | 964 | | 273 | | |
| 2020 | 2020 | 5,996 | | 292 | | — | | | 2020 | 3,293 | | 502 | | 25 | | |
| 2019 | 2019 | 5,293 | | 116 | | 1 | | | 2019 | 3,048 | | 92 | | 1 | | |
| 2018 | 2018 | 3,729 | | 32 | | — | | | 2018 | 2,074 | | 48 | | — | | |
| 2017 | 2,739 | | 38 | | — | | | |
| Prior | Prior | 12,190 | | 102 | | 14 | | | Prior | 9,201 | | 36 | | 7 | | |
| Total | Total | $ | 36,281 | | $ | 1,569 | | $ | 15 | | $ | 24 | | $ | 37,889 | | Total | $ | 24,866 | | $ | 2,617 | | $ | 600 | | $ | 31 | | $ | 28,114 | |
(1)Mortgage portfolios outside of the U.S. are primarily in Global Wealth. As of September 30, 20222023 and December 31, 2021,2022, mortgage portfolios outside of the U.S. havehad an average LTV of approximately 49%53% and 46%51%, respectively.
Consumer Loans and Ratios Outside of North America
| | | | | Delinquency-managed loans and ratios | | | | Delinquency-managed loans and ratios |
| In millions of dollars at September 30, 2022 | | Total loans outside of North America(1) | Classifiably managed loans(2) | Delinquency-managed loans | 30–89
days past
due ratio | ≥ 90 days past due ratio | 3Q22 NCL ratio | 3Q21 NCL ratio | |
| In millions of dollars at September 30, 2023 | | In millions of dollars at September 30, 2023 | | Total loans outside of North America(1) | Classifiably managed loans(2) | Delinquency-managed loans | 30–89
days past
due ratio | ≥ 90 days past due ratio | 3Q23 NCL ratio | 3Q22 NCL ratio |
Residential mortgages(3) | Residential mortgages(3) | | $ | 27,281 | | $ | — | | $ | 27,281 | | 0.19 | % | 0.32 | % | 0.18 | % | 0.10 | % | Residential mortgages(3) | | $ | 26,389 | | $ | — | | $ | 26,389 | | 0.19 | % | 0.27 | % | (0.01) | % | 0.18 | % |
| Credit cards | Credit cards | | 11,764 | | — | | 11,764 | | 1.11 | | 1.06 | | 3.22 | | 3.99 | | Credit cards | | 13,573 | | — | | 13,573 | | 1.41 | | 1.49 | | 4.35 | | 3.22 | |
Personal, small business and other(4) | Personal, small business and other(4) | | 39,849 | | 19,432 | | 20,417 | | 0.54 | | 0.39 | | 0.74 | | 0.92 | | Personal, small business and other(4) | | 35,299 | | 16,954 | | 18,345 | | 0.57 | | 0.22 | | 0.99 | | 0.74 | |
| Total | Total | | $ | 78,894 | | $ | 19,432 | | $ | 59,462 | | 0.49 | % | 0.49 | % | 0.91 | % | 1.10 | % | Total | | $ | 75,261 | | $ | 16,954 | | $ | 58,307 | | 0.59 | % | 0.54 | % | 1.24 | % | 0.91 | % |
| | | | | Delinquency-managed loans and ratios | | | | | Delinquency-managed loans and ratios | |
| In millions of dollars at December 31, 2021 | | Total loans outside of North America(1) | Classifiably managed loans(2) | Delinquency-managed loans | 30–89
days past
due ratio | ≥ 90 days past due ratio | | |
| In millions of dollars at December 31, 2022 | | In millions of dollars at December 31, 2022 | | Total loans outside of North America(1) | Classifiably managed loans(2) | Delinquency-managed loans | 30–89
days past
due ratio | ≥ 90 days past due ratio | |
Residential mortgages(3) | Residential mortgages(3) | | $ | 37,889 | | $ | — | | $ | 37,889 | | 0.44 | % | 0.42 | % | | Residential mortgages(3) | | $ | 28,114 | | $ | — | | $ | 28,114 | | 0.22 | % | 0.38 | % | |
| Credit cards | Credit cards | | 17,808 | | — | | 17,808 | | 1.08 | | 1.06 | | | Credit cards | | 12,955 | | — | | 12,955 | | 1.13 | | 1.15 | | |
Personal, small business and other(4) | Personal, small business and other(4) | | 57,150 | | 24,482 | | 32,668 | | 0.44 | | 0.23 | | | Personal, small business and other(4) | | 37,984 | | 17,762 | | 20,222 | | 0.52 | | 0.05 | | |
| Total | Total | | $ | 112,847 | | $ | 24,482 | | $ | 88,365 | | 0.57 | % | 0.48 | % | | Total | | $ | 79,053 | | $ | 17,762 | | $ | 61,291 | | 0.51 | % | 0.43 | % | |
(1) Mexico is included in offices outside of North America.
(2) Classifiably managed loans are primarily evaluated for credit risk based on their internal risk classification. As of September 30, 20222023 and December 31, 2021,2022, approximately 94%93% and 94% of these loans, respectively, were rated investment grade.
(3) Includes $19.3$20.0 billion and $19.8 billion as of September 30, 20222023 and December 31, 2021,2022, respectively, of residential mortgages related to the Global Wealth business.
(4) Includes $28.5$24.9 billion and $34.6$26.6 billion as of September 30, 20222023 and December 31, 2021,2022, respectively, of loans related to the Global Wealth business.
Impaired Consumer LoansLoan Modifications to Borrowers Experiencing Financial Difficulty
The following tables present information about impairedCiti seeks to modify consumer loans to borrowers experiencing financial difficulty to minimize losses, avoid foreclosure or repossession of collateral, and interest income recognized on impairedultimately maximize payments received from the borrowers. Citi uses various metrics to identify consumer loans:borrowers experiencing financial difficulty, with the primary indicator being delinquency at the time of modification. Citi’s significant consumer modification programs are described below.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Three Months Ended
September 30, | Nine Months Ended
September 30, |
| | Balance at September 30, 2022 | 2022 | 2021 | 2022 | 2021 |
| In millions of dollars | Recorded investment(1)(2) | Unpaid
principal balance | Related specific allowance(3)(4) | Average carrying value(5) | Interest income
recognized(6) | Interest income
recognized(6) | Interest income
recognized(6) | Interest income
recognized(6) |
| Mortgage and real estate | | | | | | | | |
| Residential first mortgages | $ | 1,242 | | $ | 1,361 | | $ | 49 | | $ | 1,337 | | $ | 23 | | $ | 23 | | $ | 94 | | $ | 67 | |
| Home equity loans | 250 | | 319 | | (7) | | 245 | | 2 | | 2 | | 7 | | 7 | |
| Credit cards | 1,212 | | 1,212 | | 461 | | 1,328 | | 14 | | 24 | | 47 | | 92 | |
| Personal, small business and other | 114 | | 114 | | 72 | | 207 | | 4 | | 14 | | 11 | | 41 | |
| Total | $ | 2,818 | | $ | 3,006 | | $ | 575 | | $ | 3,117 | | $ | 43 | | $ | 63 | | $ | 159 | | $ | 207 | |
Citi seeks to assist credit card borrowers who are experiencing financial difficulty by offering long-term loan modification programs. These modifications generally involve reducing the interest rate on the credit card, placing the customer on a fixed payment plan not to exceed 60 months and canceling the customer’s available line of credit. Citi also grants modifications to credit card borrowers working with third-party renegotiation agencies that seek to restructure customers’ entire unsecured debt. In both circumstances, if the cardholder does not comply with the modified payment terms, the credit card loan continues to age and will ultimately be charged off in accordance with Citi’s standard charge-off policy. In certain situations, Citi may forgive a portion of an outstanding balance if the borrower pays a required amount.
Residential Mortgages
Citi utilizes a third-party subservicer for the servicing of its residential mortgage loans. Through this third-party subservicer, Citi seeks to assist residential mortgage borrowers who are experiencing financial difficulty primarily by offering interest rate reductions, principal and/or interest forbearance, term extensions or combinations thereof. Borrowers enrolled in forbearance programs typically have payments suspended until the end of the forbearance period. In the U.S., before permanently modifying the contractual payment terms of a mortgage loan, Citi enters into a trial modification with the borrower. Trial modifications generally represent a three-month period during which the borrower makes monthly payments under the anticipated modified payment terms. These loans continue to age and accrue interest in accordance with their original contractual terms. Upon successful completion of the trial period, and the borrower’s formal acceptance of the modified terms, Citi and the borrower enter into a permanent modification. Citi expects the majority of loans entering trial modifications to ultimately be enrolled in a permanent modification. During the three and nine months ended September 30, 2023, $12 million and $22 million, respectively, of mortgage loans were enrolled in trial programs. Mortgage loans of $4 million and $6 million had gone through Chapter 7 bankruptcy during the three and nine months ended September 30, 2023, respectively.
| | | | | | | | | | | | | | | |
| | Balance at December 31, 2021 |
| In millions of dollars | Recorded investment(1)(2) | Unpaid
principal balance | Related specific allowance(3)(4) | Average carrying value(5) | |
| Mortgage and real estate | | | | | |
| Residential first mortgages | $ | 1,521 | | $ | 1,595 | | $ | 87 | | $ | 1,564 | | |
| Home equity loans | 191 | | 344 | | (1) | | 336 | | |
| Credit cards | 1,582 | | 1,609 | | 594 | | 1,795 | | |
| Personal, small business and other | 454 | | 461 | | 133 | | 505 | | |
| Total | $ | 3,748 | | $ | 4,009 | | $ | 813 | | $ | 4,200 | | |
The following tables provide details on permanent consumer loan modifications granted during the three and nine months ended September 30, 2023 to borrowers experiencing financial difficulty by type of modification granted and the financial effect of those modifications:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | For the Three Months Ended September 30, 2023 |
| In millions of dollars, except weighted averages | | Modifications as % of loans | Total modifications balance at September 30, 2023(1)(2)(3) | | Interest rate reduction | Term extension | Payment delay | Combination: interest rate reduction and term extension | Combination: term extension and payment delay(4) | | Weighted average interest rate reduction % | Weighted average term extension (months) | Weighted average delay in payments (months) |
In North America offices(5) | | | | | | | | | | | |
Residential first mortgages(6) | | 0.05 | % | $ | 48 | | | $ | — | | $ | 25 | | $ | 19 | | $ | 4 | | $ | — | | | 1 | % | 220 | 6 |
| Home equity loans | | 0.03 | | 1 | | | — | | — | | 1 | | — | | — | | | 2 | | 146 | 6 |
| Credit cards | | 0.22 | | 339 | | | 339 | | — | | — | | — | | — | | | 22 | | — | | — | |
| Personal, small business and other | | 0.01 | | 4 | | | — | | — | | — | | 4 | | — | | | 6 | | 15 | — | |
| Total | | 0.13 | % | $ | 392 | | | $ | 339 | | $ | 25 | | $ | 20 | | $ | 8 | | $ | — | | | | | |
In offices outside North America(5) | | | | | | | | | | | |
| Residential mortgages | | 0.99 | % | $ | 260 | | | $ | — | | $ | — | | $ | 7 | | $ | — | | $ | 253 | | | — | % | 1 | 1 |
| Credit cards | | 0.10 | | 13 | | | 13 | | — | | — | | — | | — | | | 18 | | — | | — | |
| Personal, small business and other | | 0.02 | | 7 | | | 1 | | 2 | | — | | 4 | | — | | | 8 | | 21 | — | |
| Total | | 0.37 | % | $ | 280 | | | $ | 14 | | $ | 2 | | $ | 7 | | $ | 4 | | $ | 253 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | For the Nine Months Ended September 30, 2023 |
| In millions of dollars, except weighted averages | | Modifications as % of loans | Total modifications balance at September 30, 2023(1)(2)(3) | | Interest rate reduction | Term extension | Payment delay | Combination: interest rate reduction and term extension | Combination: term extension and payment delay(4) | | Weighted average interest rate reduction % | Weighted average term extension (months) | Weighted average delay in payments (months) |
In North America offices(5) | | | | | | | | | | | |
Residential first mortgages(6) | | 0.14 | % | $ | 145 | | | $ | 1 | | $ | 53 | | $ | 82 | | $ | 9 | | $ | — | | | 1 | % | 202 | 8 |
| Home equity loans | | 0.55 | | 21 | | | — | | — | | 8 | | 13 | | — | | | 2 | | 122 | 8 |
| Credit cards | | 0.49 | | 756 | | | 756 | | — | | — | | — | | — | | | 22 | | — | | — | |
| Personal, small business and other | | 0.02 | | 9 | | | 1 | | — | | — | | 8 | | — | | | 6 | | 15 | — | |
| Total | | 0.31 | % | $ | 931 | | | $ | 758 | | $ | 53 | | $ | 90 | | $ | 30 | | $ | — | | | | | |
In offices outside North America(5) | | | | | | | | | | | |
| Residential mortgages | | 1.15 | % | $ | 303 | | | $ | — | | $ | — | | $ | 25 | | $ | 1 | | $ | 277 | | | 2 | % | 3 | 4 |
| Credit cards | | 0.24 | | 33 | | | 32 | | — | | — | | 1 | | — | | | 18 | | 28 | — | |
| Personal, small business and other | | 0.06 | | 20 | | | 3 | | 6 | | — | | 11 | | — | | | 8 | | 19 | — | |
| Total | | 0.47 | % | $ | 356 | | | $ | 35 | | $ | 6 | | $ | 25 | | $ | 13 | | $ | 277 | | | | | |
(1)Recorded investment in a loan includes net deferred loan fees The above tables reflect activity for loans outstanding as of the end of the reporting period. During the three and costs, unamortized premium or discountnine months ended September 30, 2023, Citi granted forgiveness of $17 million and direct write-downs and includes accrued interest only on$38 million, respectively, in credit card loans.
(2)Atloans and $1 million and $2 million, respectively, in personal, small business and other loans that had no remaining outstanding balance at September 30, 2022, $144 million2023.
(2) Commitments to lend to borrowers experiencing financial difficulty that were granted modifications included in the tables above were immaterial at September 30, 2023.
(3) For major consumer portfolios, the ACLL is based on macroeconomic-sensitive models that rely on historical performance and macroeconomic scenarios to forecast expected credit losses. Modifications of consumer loans impact expected credit losses by affecting the likelihood of default.
(4) Residential mortgages in offices outside North America were granted four months of payment deferrals during the six months ended December 31, 2022.
(5) North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America.
(6) Excludes residential first mortgages and $75 million of home equity loans do not have a specific allowance. At December 31, 2021, $190 million of residential first mortgages and $94 million of home equity loans do not have a specific allowance because they are accounted for based on collateral value, and that value isdischarged in excess of the outstanding loan balance.
(3)IncludedChapter 7 bankruptcy in the Allowance for credit losses on loans.
(4)The negative allowance on home equity loans resulted from expected recoveries on previously written-off accounts.
(5)Average carrying value represents the average recorded investment ending balance for the last four quartersthree and does not include the related specific allowance.
(6)Includes amounts recognized on both accrual and cash basis.
The following tables present the Company’s three and nine months ended September 30, 2022 consumer TDRs, under previous GAAP, prior to the Company’s adoption of ASU No. 2022-02 on January 1, 2023:
Consumer Troubled Debt Restructurings(1)
| | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended September 30, 2022 |
| In millions of dollars, except number of loans modified | Number of
loans modified | Post-
modification
recorded
investment(2)(3) | Deferred
principal(4) | Contingent
principal
forgiveness(5) | Principal
forgiveness(6) | Average
interest rate
reduction |
In North America offices(7) | | | | | | |
| Residential first mortgages | 235 | | $ | 58 | | $ | — | | $ | — | | $ | — | | — | % |
| Home equity loans | 117 | | 14 | | — | | — | | — | | — | |
| Credit cards | 46,326 | | 203 | | — | | — | | — | | 18 | |
| Personal, small business and other | 132 | | 3 | | — | | — | | — | | 7 | |
Total(8) | 46,810 | | $ | 278 | | $ | — | | $ | — | | $ | — | | |
In offices outside North America(7) | | | | | | |
| Residential mortgages | 172 | | $ | 6 | | $ | — | | $ | — | | $ | — | | — | % |
| Credit cards | 3,519 | | 15 | | — | | — | | — | | 27 | |
| Personal, small business and other | 575 | | 6 | | — | | — | | 1 | | 8 | |
Total(8) | 4,266 | | $ | 27 | | $ | — | | $ | — | | $ | 1 | | |
| | For the Nine Months Ended September 30, 2022 |
| In millions of dollars, except number of loans modified | Number of
loans modified | Post-
modification
recorded
investment(2)(9) | Deferred
principal(4) | Contingent
principal
forgiveness(5) | Principal
forgiveness(6) | Average
interest rate
reduction |
In North America offices(7) | | | | | | |
| Residential first mortgages | 860 | | $ | 195 | | $ | — | | $ | — | | $ | — | | — | % |
| Home equity loans | 324 | | 30 | | — | | — | | — | | — | |
| Credit cards | 123,886 | | 533 | | — | | — | | — | | 18 | |
| Personal, small business and other | 383 | | 5 | | — | | — | | — | | 5 | |
Total(8) | 125,453 | | $ | 763 | | $ | — | | $ | — | | $ | — | | |
In offices outside North America(7) | | | | | | |
| Residential mortgages | 465 | | $ | 16 | | $ | — | | $ | — | | $ | — | | — | % |
| Credit cards | 11,981 | | 50 | | — | | — | | 1 | | 24 | |
| Personal, small business and other | 1,842 | | 22 | | — | | — | | 1 | | 8 | |
Total(8) | 14,288 | | $ | 88 | | $ | — | | $ | — | | $ | 2 | | |
| | | | For the Three Months Ended September 30, 2021 | | For the Three Months Ended September 30, 2022 |
| In millions of dollars, except number of loans modified | In millions of dollars, except number of loans modified | Number of
loans modified | Post- modification recorded investment(2)(3) | Deferred principal(4) | Contingent principal forgiveness(5) | Principal forgiveness(6) | Average
interest rate
reduction | In millions of dollars, except number of loans modified | Number of
loans modified | Post-
modification
recorded
investment(2)(3) | Deferred
principal(4) | Contingent
principal
forgiveness(5) | Principal
forgiveness(6) | Average
interest rate
reduction |
In North America offices(7) | In North America offices(7) | | In North America offices(7) | |
| Residential first mortgages | Residential first mortgages | 285 | | $ | 49 | | $ | — | | $ | — | | $ | — | | 1 | % | Residential first mortgages | 235 | | $ | 58 | | $ | — | | $ | — | | $ | — | | — | % |
| Home equity loans | Home equity loans | 33 | | 2 | | — | | — | | — | | — | | Home equity loans | 117 | | 14 | | — | | — | | — | | — | |
| Credit cards | Credit cards | 33,746 | | 159 | | — | | — | | — | | 18 | | Credit cards | 46,326 | | 203 | | — | | — | | — | | 18 | |
| Personal, small business and other | Personal, small business and other | 169 | | 1 | | — | | — | | — | | 5 | | Personal, small business and other | 132 | | 3 | | — | | — | | — | | 7 | |
Total(8) | Total(8) | 34,233 | | $ | 211 | | $ | — | | $ | — | | $ | — | | | Total(8) | 46,810 | | $ | 278 | | $ | — | | $ | — | | $ | — | | |
In offices outside North America(7) | In offices outside North America(7) | | In offices outside North America(7) | |
| Residential mortgages | Residential mortgages | 451 | | $ | 22 | | $ | — | | $ | — | | $ | — | | — | % | Residential mortgages | 172 | | $ | 6 | | $ | — | | $ | — | | $ | — | | — | % |
| Credit cards | Credit cards | 16,082 | | 71 | | — | | — | | 2 | | 15 | | Credit cards | 3,519 | | 15 | | — | | — | | — | | 27 | |
| Personal, small business and other | Personal, small business and other | 7,336 | | 49 | | — | | — | | 2 | | 9 | | Personal, small business and other | 575 | | 6 | | — | | — | | 1 | | 8 | |
Total(8) | Total(8) | 23,869 | | $ | 142 | | $ | — | | $ | — | | $ | 4 | | | Total(8) | 4,266 | | $ | 27 | | $ | — | | $ | — | | $ | 1 | | |
| | | For the Nine Months Ended September 30, 2021 | |
| | | | For the Nine Months Ended September 30, 2022 |
| In millions of dollars, except number of loans modified | In millions of dollars, except number of loans modified | Number of
loans modified | Post- modification recorded investment(2)(9) | Deferred principal(4) | Contingent principal forgiveness(5) | Principal forgiveness(6) | Average
interest rate
reduction | In millions of dollars, except number of loans modified | Number of
loans modified | Post-
modification
recorded
investment(2)(9) | Deferred
principal(4) | Contingent
principal
forgiveness(5) | Principal
forgiveness(6) | Average
interest rate
reduction |
In North America offices(7) | In North America offices(7) | | In North America offices(7) | |
| Residential first mortgages | Residential first mortgages | 955 | | $ | 169 | | $ | — | | $ | — | | $ | — | | — | % | Residential first mortgages | 860 | | $ | 195 | | $ | — | | $ | — | | $ | — | | — | % |
| Home equity loans | Home equity loans | 145 | | 11 | | | — | | — | | — | | Home equity loans | 324 | | 30 | | — | | — | | — | | — | |
| Credit cards | Credit cards | 129,129 | | 640 | | — | | — | | — | | 17 | | Credit cards | 123,886 | | 533 | | — | | — | | — | | 18 | |
| Personal, small business and other | Personal, small business and other | 855 | | 11 | | — | | — | | — | | 3 | | Personal, small business and other | 383 | | 5 | | — | | — | | — | | 5 | |
Total(8) | Total(8) | 131,084 | | $ | 831 | | $ | — | | $ | — | | $ | — | | | Total(8) | 125,453 | | $ | 763 | | $ | — | | $ | — | | $ | — | | |
In offices outside North America(7) | In offices outside North America(7) | | In offices outside North America(7) | |
| Residential mortgages | 1,448 | | $ | 74 | | $ | — | | $ | — | | $ | — | | — | % | |
| Residential first mortgages | | Residential first mortgages | 465 | | $ | 16 | | $ | — | | $ | — | | $ | — | | — | % |
| Credit cards | Credit cards | 58,978 | | 267 | | — | | — | | 10 | | 14 | | Credit cards | 11,981 | | 50 | | — | | — | | 1 | | 24 | |
| Personal, small business and other | Personal, small business and other | 21,654 | | 164 | | — | | — | | 6 | | 10 | | Personal, small business and other | 1,842 | | 22 | | — | | — | | 1 | | 8 | |
Total(8) | Total(8) | 82,080 | | $ | 505 | | $ | — | | $ | — | | $ | 16 | | | Total(8) | 14,288 | | $ | 88 | | $ | — | | $ | — | | $ | 2 | | |
(1)The above tables do not include loan modifications that meet the TDR relief criteria in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) or the interagency guidance.
(2)Post-modification balances include past-due amounts that are capitalized at the modification date.
(3)Post-modification balances in North America include $1.8 million and $3.8 million of residential first mortgages to borrowers who have gone through Chapter 7 bankruptcy in the three months ended September 30, 2022 and September 30, 2021, respectively.2022. These amounts include $1.8 million and $1.6 million of residential first mortgages that were newly classified as TDRs in the three months ended September 30, 2022, and September 30, 2021, respectively, based on previously received OCC guidance.
(4)Represents portion of contractual loan principal that is non-interest bearing, but still due from the borrower. Such deferred principal is charged off at the time of permanent modification to the extent that the related loan balance exceeds the underlying collateral value.
(5)Represents portion of contractual loan principal that is non-interest bearing and, depending upon borrower performance, eligible for forgiveness.
(6)Represents portion of contractual loan principal that was forgiven at the time of permanent modification.
(7)North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America.
(8) The above tables reflect activity for restructured loans that were considered TDRs during the reporting period.
(9) Post-modification balances in North America include $3.7 million and $10.7$3.7 million of residential first mortgages to borrowers who have gone through Chapter 7 bankruptcy in the nine months ended September 30, 2022 and September 30, 2021, respectively.2022. These amounts include $3.7 million and $4.1 million of residential first mortgages that were newly classified as TDRs in the nine months ended September 30, 2022, and September 30, 2021, respectively, based on previously received OCC guidance.
Performance of Modified Consumer Loans
The following table presents the delinquencies and gross credit losses of permanently modified consumer loans to borrowers experiencing financial difficulty. It includes loans that were modified during the nine months ended September 30, 2023:
| | | | | | | | | | | | | | | | | |
| As of September 30, 2023 |
| In millions of dollars | Total | Current | 30–89 days past due | 90+ days
past due | Gross
credit losses |
In North America offices(1) | | | | | |
| Residential first mortgages | $ | 145 | | $ | 62 | | $ | 19 | | $ | 64 | | $ | — | |
| Home equity loans | 21 | | 14 | | 1 | | 6 | | — | |
| Credit cards | 756 | | 522 | | 143 | | 91 | | 118 | |
| Personal, small business and other | 9 | | 8 | | 1 | | — | | — | |
Total(2)(3) | $ | 931 | | $ | 606 | | $ | 164 | | $ | 161 | | $ | 118 | |
In offices outside North America(1) | | | | | |
| Residential mortgages | $ | 304 | | $ | 301 | | $ | 2 | | $ | 1 | | $ | — | |
| | | | | |
| Credit cards | 33 | | 29 | | 2 | | 2 | | 1 | |
| Personal, small business and other | 19 | | 17 | | 2 | | — | | — | |
Total(2)(3) | $ | 356 | | $ | 347 | | $ | 6 | | $ | 3 | | $ | 1 | |
(1) North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America.
(2) Typically, upon modification a loan re-ages to current. However, FFIEC guidelines for re-aging certain loans require that at least three consecutive minimum monthly payments, or the equivalent amount, be received. In these cases, the loan will remain delinquent until the payment criteria for re-aging have been satisfied.
(3) Loans modified under Citi’s COVID-19 consumer relief programs continue to be reported in the same delinquency bucket they were in at the time of modification.
Defaults of Modified Consumer Loans
The following tables present default activity for permanently modified consumer loans to borrowers experiencing financial difficulty by type of modification granted, including loans that were modified and subsequently defaulted during the three and nine months ended September 30, 2023. Default is defined as 60 days past due:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | For the Three Months Ended September 30, 2023 |
| In millions of dollars | Total(1)(2) | | Interest rate reduction | Term
extension | Payment
delay | Combination: interest rate reduction and term extension | Combination: term extension and payment delay | Combination: interest rate reduction, term extension and payment delay |
In North America offices(3) | | | | | | | | |
| Residential first mortgages | $ | 6 | | | $ | — | | $ | 5 | | $ | 1 | | $ | — | | $ | — | | $ | — | |
| Home equity loans | — | | | — | | — | | — | | — | | — | | — | |
Credit cards(4) | 61 | | | 61 | | — | | — | | — | | — | | — | |
| Personal, small business and other | — | | | — | | — | | — | | — | | — | | — | |
| Total | $ | 67 | | | $ | 61 | | $ | 5 | | $ | 1 | | $ | — | | $ | — | | $ | — | |
In offices outside North America(3) | | | | | | | | |
| Residential mortgages | $ | — | | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
Credit cards(4) | 2 | | | 2 | | — | | — | | — | | — | | — | |
| Personal, small business and other | — | | | — | | — | | — | | — | | — | | — | |
| Total | $ | 2 | | | $ | 2 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
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| | | | For the Nine Months Ended September 30, 2023 |
| In millions of dollars | Total(1)(2) | | Interest rate reduction | Term
extension | Payment
delay | Combination: interest rate reduction and term extension | Combination: term extension and payment delay | Combination: interest rate reduction, term extension and payment delay |
In North America offices(3) | | | | | | | | |
| Residential first mortgages | $ | 7 | | | $ | 1 | | $ | 5 | | $ | 1 | | $ | — | | $ | — | | $ | — | |
| Home equity loans | — | | | — | | — | | — | | — | | — | | — | |
Credit cards(4) | 93 | | | 93 | | — | | — | | — | | — | | — | |
| Personal, small business and other | — | | | — | | — | | — | | — | | — | | — | |
| Total | $ | 100 | | | $ | 94 | | $ | 5 | | $ | 1 | | $ | — | | $ | — | | $ | — | |
In offices outside North America(3) | | | | | | | | |
| Residential mortgages | $ | 2 | | | $ | — | | $ | — | | $ | 2 | | $ | — | | $ | — | | $ | — | |
Credit cards(4) | 3 | | | 3 | | — | | — | | — | | — | | — | |
| Personal, small business and other | 2 | | | — | | — | | — | | 2 | | — | | — | |
| Total | $ | 7 | | | $ | 3 | | $ | — | | $ | 2 | | $ | 2 | | $ | — | | $ | — | |
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(1) The above table reflects activity for loans outstanding as of the end of the reporting period.
(2) Modified residential first mortgages that default are typically liquidated through foreclosure or a similar type of liquidation.
(3) North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America.
(4) Modified credit card loans that default continue to be charged off in accordance with Citi’s consumer charge-off policy.
The following table presents the Company’s three and nine months ended September 30, 2022 consumer TDRs, under previous GAAP, prior to the Company’s adoption of ASU No. 2022-02 on January 1, 2023, that defaulted for which the payment default occurred within one year of a permanent modification. Default is defined as 60 days past due:
| | | Three Months Ended September 30, | Nine Months Ended September 30, | | Three Months Ended September 30, | | Nine Months Ended September 30, | |
| In millions of dollars | In millions of dollars | 2022 | 2021 | 2022 | 2021 | In millions of dollars | 2022 | | 2022 | |
In North America offices(1) | In North America offices(1) | | | | In North America offices(1) | | | | |
| Residential first mortgages | Residential first mortgages | $ | 6 | | $ | 10 | | $ | 23 | | $ | 43 | | Residential first mortgages | $ | 6 | | | $ | 23 | | |
| Home equity loans | Home equity loans | 1 | | 1 | | 3 | | 8 | | Home equity loans | 1 | | | 3 | | |
| Credit cards | Credit cards | 62 | | 60 | | 178 | | 196 | | Credit cards | 62 | | | 178 | | |
| Personal, small business and other | Personal, small business and other | — | | 1 | | — | | 3 | | Personal, small business and other | — | | | — | | |
| Total | Total | $ | 69 | | $ | 72 | | $ | 204 | | $ | 250 | | Total | $ | 69 | | | $ | 204 | | |
In offices outside North America(1) | In offices outside North America(1) | | | | In offices outside North America(1) | | | | |
| Residential mortgages | Residential mortgages | $ | 2 | | $ | 9 | | $ | 9 | | $ | 31 | | Residential mortgages | $ | 2 | | | $ | 9 | | |
| Credit cards | Credit cards | 3 | | 36 | | 10 | | 133 | | Credit cards | 3 | | | 10 | | |
| Personal, small business and other | Personal, small business and other | 1 | | 29 | | 3 | | 87 | | Personal, small business and other | 1 | | | 3 | | |
| Total | Total | $ | 6 | | $ | 74 | | $ | 22 | | $ | 251 | | Total | $ | 6 | | | $ | 22 | | |
(1)North America includes the U.S., Canada and Puerto Rico. Mexico is included in offices outside North America.
Purchased Credit-Deteriorated Assets
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended
September 30, 2022 | Three Months Ended
December 31, 2021 | Three Months Ended
September 30, 2021 |
| In millions of dollars | Credit
cards | Mortgages(1) | Installment
and other | Credit
cards | Mortgages(1) | Installment
and other | Credit
cards | Mortgages(1) | Installment
and other |
| Purchase price | $ | — | | $ | 7 | | $ | — | | $ | — | | $ | 4 | | $ | — | | $ | — | | $ | 6 | | $ | — | |
| Allowance for credit losses at acquisition date | — | | — | | — | | — | | — | | — | | — | | — | | — | |
| Discount or premium attributable to non-credit factors | — | | — | | — | | — | | — | | — | | — | | — | | — | |
| Par value (amortized cost basis) | $ | — | | $ | 7 | | $ | — | | $ | — | | $ | 4 | | $ | — | | $ | — | | $ | 6 | | $ | — | |
(1) Includes loans sold to agencies that were bought back at par due to repurchase agreements.
14. ALLOWANCE FOR CREDIT LOSSES
| | | Three Months Ended September 30, | Nine Months Ended September 30, | | Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | In millions of dollars | 2022 | 2021 | 2022 | 2021 | In millions of dollars | 2023 | 2022 | 2023 | 2022 |
| Allowance for credit losses on loans (ACLL) at beginning of period | Allowance for credit losses on loans (ACLL) at beginning of period | $ | 15,952 | | $ | 19,238 | | $ | 16,455 | | $ | 24,956 | | Allowance for credit losses on loans (ACLL) at beginning of period | $ | 17,496 | | $ | 15,952 | | $ | 16,974 | | $ | 16,455 | |
Adjustments to opening balance(1) | | Adjustments to opening balance(1) | | | |
Financial instruments—TDRs and vintage disclosures(1) | | Financial instruments—TDRs and vintage disclosures(1) | $ | — | | $ | — | | $ | (352) | | $ | — | |
| | Adjusted ACLL at beginning of period | | Adjusted ACLL at beginning of period | $ | 17,496 | | $ | 15,952 | | $ | 16,622 | | $ | 16,455 | |
| Gross credit losses on loans | Gross credit losses on loans | $ | (1,237) | | $ | (1,389) | | $ | (3,689) | | $ | (5,441) | | Gross credit losses on loans | $ | (2,000) | | $ | (1,237) | | $ | (5,513) | | $ | (3,689) | |
| Gross recoveries on loans | Gross recoveries on loans | 350 | | 428 | | 1,080 | | 1,412 | | Gross recoveries on loans | 363 | | 350 | | 1,070 | | 1,080 | |
| Net credit losses on loans (NCLs) | Net credit losses on loans (NCLs) | $ | (887) | | $ | (961) | | $ | (2,609) | | $ | (4,029) | | Net credit losses on loans (NCLs) | $ | (1,637) | | $ | (887) | | $ | (4,443) | | $ | (2,609) | |
| Replenishment of NCLs | Replenishment of NCLs | $ | 887 | | $ | 961 | | $ | 2,609 | | $ | 4,029 | | Replenishment of NCLs | $ | 1,637 | | $ | 887 | | $ | 4,443 | | $ | 2,609 | |
| Net reserve builds (releases) for loans | Net reserve builds (releases) for loans | 519 | | (1,010) | | 259 | | (6,262) | | Net reserve builds (releases) for loans | 100 | | 519 | | 787 | | 259 | |
| Net specific reserve builds (releases) for loans | Net specific reserve builds (releases) for loans | (78) | | (139) | | 104 | | (560) | | Net specific reserve builds (releases) for loans | 79 | | (78) | | 84 | | 104 | |
| Total provision for credit losses on loans (PCLL) | Total provision for credit losses on loans (PCLL) | $ | 1,328 | | $ | (188) | | $ | 2,972 | | $ | (2,793) | | Total provision for credit losses on loans (PCLL) | $ | 1,816 | | $ | 1,328 | | $ | 5,314 | | $ | 2,972 | |
| | Other, net (see table below) | Other, net (see table below) | (84) | | (374) | | (509) | | (419) | | Other, net (see table below) | (46) | | (84) | | 136 | | (509) | |
| ACLL at end of period | ACLL at end of period | $ | 16,309 | | $ | 17,715 | | $ | 16,309 | | $ | 17,715 | | ACLL at end of period | $ | 17,629 | | $ | 16,309 | | $ | 17,629 | | $ | 16,309 | |
Allowance for credit losses on unfunded lending commitments (ACLUC) at beginning of period(1)(2) | Allowance for credit losses on unfunded lending commitments (ACLUC) at beginning of period(1)(2) | $ | 2,193 | | $ | 2,073 | | $ | 1,871 | | $ | 2,655 | | Allowance for credit losses on unfunded lending commitments (ACLUC) at beginning of period(1)(2) | $ | 1,862 | | $ | 2,193 | | $ | 2,151 | | $ | 1,871 | |
| | Provision (release) for credit losses on unfunded lending commitments | Provision (release) for credit losses on unfunded lending commitments | (71) | | (13) | | 244 | | (595) | | Provision (release) for credit losses on unfunded lending commitments | (54) | | (71) | | (344) | | 244 | |
| Other, net | Other, net | (33) | | 3 | | (26) | | 3 | | Other, net | (2) | | (33) | | (1) | | (26) | |
ACLUC at end of period(1)(2) | ACLUC at end of period(1)(2) | $ | 2,089 | | $ | 2,063 | | $ | 2,089 | | $ | 2,063 | | ACLUC at end of period(1)(2) | $ | 1,806 | | $ | 2,089 | | $ | 1,806 | | $ | 2,089 | |
Total allowance for credit losses on loans, leases and unfunded lending commitments(2) | $ | 18,398 | | $ | 19,778 | | $ | 18,398 | | $ | 19,778 | | |
Total allowance for credit losses on loans, leases and unfunded lending commitments(3) | | Total allowance for credit losses on loans, leases and unfunded lending commitments(3) | $ | 19,435 | | $ | 18,398 | | $ | 19,435 | | $ | 18,398 | |
| | Other, net details | Other, net details | Three Months Ended September 30, | Nine Months Ended September 30, | Other, net details | Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | In millions of dollars | 2022 | 2021 | 2022 | 2021 | In millions of dollars | 2023 | 2022 | 2023 | 2022 |
| Reclasses of consumer ACLL to HFS(3)(4) | Reclasses of consumer ACLL to HFS(3)(4) | $ | — | | $ | (278) | | $ | (350) | | $ | (278) | | Reclasses of consumer ACLL to HFS(3)(4) | $ | — | | $ | — | | $ | — | | $ | (350) | |
| FX translation and other | FX translation and other | (84) | | (96) | | (159) | | (141) | | FX translation and other | (46) | | (84) | | 136 | | (159) | |
| Other, net | Other, net | $ | (84) | | $ | (374) | | $ | (509) | | $ | (419) | | Other, net | $ | (46) | | $ | (84) | | $ | 136 | | $ | (509) | |
(1) See Note 1 in Citi’s First Quarter of 2023 Form 10-Q for a description of the impact of adopting ASU 2022-02 on the ACL.
(1)(2) Represents additional credit loss reserves for unfunded lending commitments and letters of credit recorded in Other liabilities on the Consolidated Balance Sheet.
(2) See below for(3) This line does not include $95 million and $698 million, and $115 million and $141 million, of ACL on HTM debt securities and Other assets.at September 30, 2023 and 2022, respectively. See below for additional information.
(3)(4) See Note 2.
Allowance for Credit Losses on Loans and End-of-Period Loans
| | | Three Months Ended | | | Three Months Ended |
| | September 30, 2022 | September 30, 2021 | | | September 30, 2023 | September 30, 2022 |
| In millions of dollars | In millions of dollars | Corporate | Consumer | Total | Corporate | Consumer | Total | | In millions of dollars | Corporate | Consumer | Total | Corporate | Consumer | Total |
| ACLL at beginning of period | ACLL at beginning of period | $ | 2,969 | | $ | 12,983 | | $ | 15,952 | | $ | 2,672 | | $ | 16,566 | | $ | 19,238 | | | ACLL at beginning of period | $ | 2,630 | | $ | 14,866 | | $ | 17,496 | | $ | 2,969 | | $ | 12,983 | | $ | 15,952 | |
| | Charge-offs | Charge-offs | (43) | | (1,194) | | (1,237) | | (47) | | (1,342) | | (1,389) | | | Charge-offs | (72) | | (1,928) | | (2,000) | | (43) | | (1,194) | | (1,237) | |
| Recoveries | Recoveries | 37 | | 313 | | 350 | | 8 | | 420 | | 428 | | | Recoveries | 14 | | 349 | | 363 | | 37 | | 313 | | 350 | |
| Replenishment of NCLs | Replenishment of NCLs | 6 | | 881 | | 887 | | 39 | | 922 | | 961 | | | Replenishment of NCLs | 58 | | 1,579 | | 1,637 | | 6 | | 881 | | 887 | |
| Net reserve builds (releases) | Net reserve builds (releases) | 145 | | 374 | | 519 | | (26) | | (984) | | (1,010) | | | Net reserve builds (releases) | 25 | | 75 | | 100 | | 145 | | 374 | | 519 | |
| Net specific reserve builds (releases) | Net specific reserve builds (releases) | (104) | | 26 | | (78) | | (21) | | (118) | | (139) | | | Net specific reserve builds (releases) | 77 | | 2 | | 79 | | (104) | | 26 | | (78) | |
| | Other | Other | (62) | | (22) | | (84) | | (15) | | (359) | | (374) | | | Other | (15) | | (31) | | (46) | | (62) | | (22) | | (84) | |
| Ending balance | Ending balance | $ | 2,948 | | $ | 13,361 | | $ | 16,309 | | $ | 2,610 | | $ | 15,105 | | $ | 17,715 | | | Ending balance | $ | 2,717 | | $ | 14,912 | | $ | 17,629 | | $ | 2,948 | | $ | 13,361 | | $ | 16,309 | |
| | Nine Months Ended | | | Nine Months Ended |
| | September 30, 2022 | September 30, 2021 | | | September 30, 2023 | September 30, 2022 |
| In millions of dollars | In millions of dollars | Corporate | Consumer | Total | Corporate | Consumer | Total | | In millions of dollars | Corporate | Consumer | Total | Corporate | Consumer | Total |
| ACLL at beginning of period | ACLL at beginning of period | $ | 2,415 | | $ | 14,040 | | $ | 16,455 | | $ | 4,776 | | $ | 20,180 | | $ | 24,956 | | | ACLL at beginning of period | $ | 2,855 | | $ | 14,119 | | $ | 16,974 | | $ | 2,415 | | $ | 14,040 | | $ | 16,455 | |
| Adjustments to opening balance: | | Adjustments to opening balance: | | | | | |
Financial instruments—TDRs and vintage disclosures(1) | | Financial instruments—TDRs and vintage disclosures(1) | — | | (352) | | (352) | | — | | — | | — | |
| | Adjusted ACLL at beginning of period | | Adjusted ACLL at beginning of period | $ | 2,855 | | $ | 13,767 | | $ | 16,622 | | $ | 2,415 | | $ | 14,040 | | $ | 16,455 | |
| Charge-offs | Charge-offs | (148) | | (3,541) | | (3,689) | | (383) | | (5,058) | | (5,441) | | | Charge-offs | $ | (197) | | $ | (5,316) | | $ | (5,513) | | $ | (148) | | $ | (3,541) | | $ | (3,689) | |
| Recoveries | Recoveries | 88 | | 992 | | 1,080 | | 82 | | 1,330 | | 1,412 | | | Recoveries | 42 | | 1,028 | | 1,070 | | 88 | | 992 | | 1,080 | |
| Replenishment of NCLs | Replenishment of NCLs | 60 | | 2,549 | | 2,609 | | 301 | | 3,728 | | 4,029 | | | Replenishment of NCLs | 155 | | 4,288 | | 4,443 | | 60 | | 2,549 | | 2,609 | |
| Net reserve builds (releases) | Net reserve builds (releases) | 394 | | (135) | | 259 | | (1,970) | | (4,292) | | (6,262) | | | Net reserve builds (releases) | (184) | | 971 | | 787 | | 394 | | (135) | | 259 | |
| Net specific reserve builds (releases) | Net specific reserve builds (releases) | 169 | | (65) | | 104 | | (167) | | (393) | | (560) | | | Net specific reserve builds (releases) | 49 | | 35 | | 84 | | 169 | | (65) | | 104 | |
| | Other | Other | (30) | | (479) | | (509) | | (29) | | (390) | | (419) | | | Other | (3) | | 139 | | 136 | | (30) | | (479) | | (509) | |
| Ending balance | Ending balance | $ | 2,948 | | $ | 13,361 | | $ | 16,309 | | $ | 2,610 | | $ | 15,105 | | $ | 17,715 | | | Ending balance | $ | 2,717 | | $ | 14,912 | | $ | 17,629 | | $ | 2,948 | | $ | 13,361 | | $ | 16,309 | |
| | | | | | | | | | | | | | | | | | | | |
| September 30, 2023 | December 31, 2022 |
| In millions of dollars | Corporate | Consumer | Total | Corporate | Consumer | Total |
| ACLL | | | | | | |
Collectively evaluated(1) | $ | 2,347 | | $ | 14,872 | | $ | 17,219 | | $ | 2,532 | | $ | 13,521 | | $ | 16,053 | |
| Individually evaluated | 370 | | 40 | | 410 | | 323 | | 596 | | 919 | |
| Purchased credit deteriorated | — | | — | | — | | — | | 2 | | 2 | |
| Total ACLL | $ | 2,717 | | $ | 14,912 | | $ | 17,629 | | $ | 2,855 | | $ | 14,119 | | $ | 16,974 | |
| Loans, net of unearned income | | | | | | |
Collectively evaluated(1) | $ | 279,470 | | $ | 377,320 | | $ | 656,790 | | $ | 282,909 | | $ | 364,795 | | $ | 647,704 | |
| Individually evaluated | 1,975 | | 58 | | 2,033 | | 1,122 | | 2,921 | | 4,043 | |
| Purchased credit deteriorated | — | | 114 | | 114 | | — | | 114 | | 114 | |
| Held at fair value | 7,189 | | 222 | | 7,411 | | 5,123 | | 237 | | 5,360 | |
| Total loans, net of unearned income | $ | 288,634 | | $ | 377,714 | | $ | 666,348 | | $ | 289,154 | | $ | 368,067 | | $ | 657,221 | |
(1)See Note 1 in Citi’s First Quarter of 2023 Form 10-Q for a description of the effect of adopting ASU 2022-02 on the ACL and for Citi’s updated accounting policy for collectively evaluating the ACL for consumer loans formerly considered TDRs.
3Q23 Changes in the ACL
The total allowance for credit losses on loans, leases and unfunded lending commitments as of September 30, 2023 was $19,435 million, a slight increase from $19,125 million at December 31, 2022. The increase in the ACLL was primarily driven by growth in card balances in Branded cards and Retail services and an increase in transfer risk associated with exposures outside the U.S. driven by safety and soundness considerations under U.S. banking law, partially offset by a decrease in the ACLL of $352 million from the adoption of ASU 2022-02 for the recognition and measurement of TDRs (see Note 1) and improved key macroeconomic variable forecasts.
Consumer ACLL
| | | | | | | | | | | | | | | | | | | | |
| September 30, 2022 | December 31, 2021 |
| In millions of dollars | Corporate | Consumer | Total | Corporate | Consumer | Total |
| ACLL | | | | | | |
| Collectively evaluated | $ | 2,522 | | $ | 12,784 | | $ | 15,306 | | $ | 2,203 | | $ | 13,227 | | $ | 15,430 | |
| Individually evaluated | 426 | | 575 | | 1,001 | | 212 | | 813 | | 1,025 | |
| Purchased credit deteriorated | — | | 2 | | 2 | | — | | — | | — | |
| Total ACLL | $ | 2,948 | | $ | 13,361 | | $ | 16,309 | | $ | 2,415 | | $ | 14,040 | | $ | 16,455 | |
| Loans, net of unearned income | | | | | | |
| Collectively evaluated | $ | 283,254 | | $ | 354,414 | | $ | 637,668 | | $ | 283,610 | | $ | 372,655 | | $ | 656,265 | |
| Individually evaluated | 1,485 | | 2,818 | | 4,303 | | 1,553 | | 3,748 | | 5,301 | |
| Purchased credit deteriorated | — | | 110 | | 110 | | — | | 119 | | 119 | |
| Held at fair value | 3,638 | | 241 | | 3,879 | | 6,070 | | 12 | | 6,082 | |
| Total loans, net of unearned income | $ | 288,377 | | $ | 357,583 | | $ | 645,960 | | $ | 291,233 | | $ | 376,534 | | $ | 667,767 | |
Corporate ACLL
Citi’s total corporate ACLL as of September 30, 2023 was $2,717 million, a decrease from $2,855 million at December 31, 2022. The decrease was primarily driven by improved key macroeconomic variable forecasts.
ACLUC
As of September 30, 2023, Citi’s total ACLUC, included in Other liabilities, was $1,806 million, a decrease from $2,151 million at December 31, 2022. The decrease was primarily driven by improved key macroeconomic variable forecasts.
Allowance for Credit Losses on HTM Debt Securities
The allowance for credit losses on HTM debt securities, which the Company has the intent and ability to hold, was $95 million and $120 million as of September 30, 2023 and December 31, 2022, respectively.
| | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, 2022 |
| In millions of dollars | Mortgage-backed | | State and municipal | Foreign government | | Asset-backed | | Total HTM |
Allowance for credit losses on HTM debt securities
at beginning of quarter | $ | 2 | | | $ | 94 | | $ | 3 | | | $ | 6 | | | $ | 105 | |
| Gross credit losses | — | | | — | | — | | | — | | | — | |
| Gross recoveries | — | | | — | | — | | | — | | | — | |
| Net credit losses (NCLs) | $ | — | | | $ | — | | $ | — | | | $ | — | | | $ | — | |
| Replenishment of NCLs | $ | — | | | $ | — | | $ | — | | | $ | — | | | $ | — | |
| Net reserve builds (releases) | 1 | | | 15 | | — | | | (6) | | | 10 | |
| Net specific reserve builds (releases) | — | | | — | | — | | | — | | | — | |
| Total provision for credit losses on HTM debt securities | $ | 1 | | | $ | 15 | | $ | — | | | $ | (6) | | | $ | 10 | |
| | | | | | | | |
| | | | | | | | |
Allowance for credit losses on HTM debt securities
at end of quarter | $ | 3 | | | $ | 109 | | $ | 3 | | | $ | — | | | $ | 115 | |
| | | | | | | | |
| Nine Months Ended September 30, 2022 |
| In millions of dollars | Mortgage-backed | | State and municipal | Foreign government | | Asset-backed | | Total HTM |
Allowance for credit losses on HTM debt securities
at beginning of year | $ | 6 | | | $ | 76 | | $ | 3 | | | $ | 2 | | | $ | 87 | |
| Gross credit losses | — | | | — | | — | | | — | | | — | |
| Gross recoveries | — | | | — | | — | | | — | | | — | |
| Net credit losses (NCLs) | $ | — | | | $ | — | | $ | — | | | $ | — | | | $ | — | |
| Replenishment of NCLs | $ | — | | | $ | — | | $ | — | | | $ | — | | | $ | — | |
| Net reserve builds (releases) | (3) | | | 33 | | — | | | (2) | | | 28 | |
| Net specific reserve builds (releases) | — | | | — | | — | | | — | | | — | |
| Total provision for credit losses on HTM debt securities | $ | (3) | | | $ | 33 | | $ | — | | | $ | (2) | | | $ | 28 | |
| | | | | | | | |
| | | | | | | | |
Allowance for credit losses on HTM debt securities
at end of quarter | $ | 3 | | | $ | 109 | | $ | 3 | | | $ | — | | | $ | 115 | |
Allowance for Credit Losses on HTM Debt Securities
| | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, 2021 |
| In millions of dollars | Mortgage-backed | | State and municipal | Foreign government | | Asset-backed | | Total HTM |
Allowance for credit losses on HTM debt securities
at beginning of quarter | $ | 5 | | | $ | 72 | | $ | 5 | | | $ | 1 | | | $ | 83 | |
| | | | | | | | |
| Gross credit losses | — | | | — | | — | | | — | | | — | |
| Gross recoveries | — | | | — | | — | | | — | | | — | |
| Net credit losses (NCLs) | $ | — | | | $ | — | | $ | — | | | $ | — | | | $ | — | |
| Replenishment of NCLs | $ | — | | | $ | — | | $ | — | | | $ | — | | | $ | — | |
| Net reserve builds (releases) | — | | | (5) | | (1) | | | — | | | (6) | |
| Net specific reserve builds (releases) | (4) | | | — | | — | | | — | | | (4) | |
| Total provision for credit losses on HTM debt securities | $ | (4) | | | $ | (5) | | $ | (1) | | | $ | — | | | $ | (10) | |
| Other, net | $ | — | | | $ | — | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | |
Allowance for credit losses on HTM debt securities
at end of quarter | $ | 1 | | | $ | 67 | | $ | 4 | | | $ | 1 | | | $ | 73 | |
| | | | | | | | |
| Nine Months Ended September 30, 2021 |
| In millions of dollars | Mortgage-backed | | State and municipal | Foreign government | | Asset-
backed | | Total HTM |
Allowance for credit losses on HTM debt securities
at beginning of year | $ | 3 | | | $ | 74 | | $ | 6 | | | $ | 3 | | | $ | 86 | |
| | | | | | | | |
| Gross credit losses | — | | | — | | — | | | — | | | — | |
| Gross recoveries | 3 | | | — | | — | | | — | | | 3 | |
| Net credit losses (NCLs) | $ | 3 | | | $ | — | | $ | — | | | $ | — | | | $ | 3 | |
| Replenishment of NCLs | $ | (3) | | | $ | — | | $ | — | | | $ | — | | | $ | (3) | |
| Net reserve builds | 2 | | | (7) | | (2) | | | (3) | | | (10) | |
| Net specific reserve builds (releases) | (4) | | | — | | — | | | — | | | (4) | |
| Total provision for credit losses on HTM debt securities | $ | (5) | | | $ | (7) | | $ | (2) | | | $ | (3) | | | $ | (17) | |
| Other, net | $ | — | | | $ | — | | $ | — | | | $ | 1 | | | $ | 1 | |
| | | | | | | | |
Allowance for credit losses on HTM debt securities
at end of quarter | $ | 1 | | | $ | 67 | | $ | 4 | | | $ | 1 | | | $ | 73 | |
Allowance for Credit Losses on Other Assets
| | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, 2022 |
| In millions of dollars | | Deposits with banks | Securities borrowed and purchased under agreements
to resell | Brokerage receivables | All other assets(1) | Total |
Allowance for credit losses on other assets
at beginning of quarter | | $ | 17 | | $ | 27 | | $ | — | | $ | 30 | | $ | 74 | |
| | | | | | |
| Gross credit losses | | — | | — | | — | | (4) | | (4) | |
| Gross recoveries | | — | | — | | — | | — | | — | |
| Net credit losses (NCLs) | | $ | — | | $ | — | | $ | — | | $ | (4) | | $ | (4) | |
| Replenishment of NCLs | | $ | — | | $ | — | | $ | — | | $ | 4 | | $ | 4 | |
| Net reserve builds (releases) | | 23 | | 45 | | — | | 1 | | 69 | |
| Total provision for credit losses | | $ | 23 | | $ | 45 | | $ | — | | $ | 5 | | $ | 73 | |
| Other, net | | $ | — | | $ | (3) | | $ | — | | $ | 1 | | $ | (2) | |
Allowance for credit losses on other assets
at end of quarter | | $ | 40 | | $ | 69 | | $ | — | | $ | 32 | | $ | 141 | |
| | | | | | |
| | Nine Months Ended September 30, 2022 |
| In millions of dollars | | Deposits with banks | Securities borrowed and purchased under agreements
to resell | Brokerage receivables | All other assets(1) | Total |
Allowance for credit losses on other assets
at beginning of year | | $ | 21 | | $ | 6 | | $ | — | | $ | 26 | | $ | 53 | |
| | | | | | |
| Gross credit losses | | — | | — | | — | | (19) | | (19) | |
| Gross recoveries | | — | | — | | — | | 2 | | 2 | |
| Net credit losses (NCLs) | | $ | — | | $ | — | | $ | — | | $ | (17) | | $ | (17) | |
| Replenishment of NCLs | | $ | — | | $ | — | | $ | — | | $ | 17 | | $ | 17 | |
| Net reserve builds (releases) | | 19 | | 35 | | — | | 5 | | 59 | |
| Total provision for credit losses | | $ | 19 | | $ | 35 | | $ | — | | $ | 22 | | $ | 76 | |
Other, net(2) | | $ | — | | $ | 28 | | $ | — | | $ | 1 | | $ | 29 | |
Allowance for credit losses on other assets
at end of quarter | | $ | 40 | | $ | 69 | | $ | — | | $ | 32 | | $ | 141 | |
(1)Primarily accounts receivable.
(2)Includes $30 million of ACL transferred from ICG loans ACL during the second quarter of 2022 for securities borrowed and purchased under agreements to resell.
Allowance for Credit Losses on Other Assets
| | | | Three Months Ended September 30, 2021 | | | Three Months Ended September 30, 2023 |
| In millions of dollars | In millions of dollars | | Deposits with banks | Securities borrowed and purchased under agreements
to resell | Brokerage receivables | All other assets(1) | Total | In millions of dollars | | Deposits with banks | Securities borrowed and purchased under agreements
to resell | | All other assets(1) | Total |
Allowance for credit losses on other assets
at beginning of quarter | Allowance for credit losses on other assets
at beginning of quarter | | $ | 24 | | $ | 8 | | $ | — | | $ | 28 | | $ | 60 | | Allowance for credit losses on other assets
at beginning of quarter | | $ | 21 | | $ | 26 | | | $ | 612 | | $ | 659 | |
| | Gross credit losses | Gross credit losses | | — | | — | | — | | — | | — | | Gross credit losses | | — | | — | | | (19) | | (19) | |
| Gross recoveries | Gross recoveries | | — | | — | | — | | — | | — | | Gross recoveries | | — | | — | | | 6 | | 6 | |
| Net credit losses (NCLs) | Net credit losses (NCLs) | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | Net credit losses (NCLs) | | $ | — | | $ | — | | | $ | (13) | | $ | (13) | |
| Replenishment of NCLs | Replenishment of NCLs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | Replenishment of NCLs | | $ | — | | $ | — | | | $ | 13 | | $ | 13 | |
| Net reserve builds (releases) | Net reserve builds (releases) | | — | | 1 | | — | | (4) | | (3) | | Net reserve builds (releases) | | 6 | | 30 | | | 7 | | 43 | |
| Total provision for credit losses | Total provision for credit losses | | $ | — | | $ | 1 | | $ | — | | $ | (4) | | $ | (3) | | Total provision for credit losses | | $ | 6 | | $ | 30 | | | $ | 20 | | $ | 56 | |
| Other, net | Other, net | | $ | — | | $ | — | | $ | — | | $ | 1 | | $ | 1 | | Other, net | | $ | — | | $ | (3) | | | $ | (1) | | $ | (4) | |
Allowance for credit losses on other assets
at end of quarter | Allowance for credit losses on other assets
at end of quarter | | $ | 24 | | $ | 9 | | $ | — | | $ | 25 | | $ | 58 | | Allowance for credit losses on other assets
at end of quarter | | $ | 27 | | $ | 53 | | | $ | 618 | | $ | 698 | |
| | | | | | | Nine Months Ended September 30, 2023 |
| | Nine Months Ended September 30, 2021 | |
| In millions of dollars | In millions of dollars | | Deposits with banks | Securities borrowed and purchased under agreements
to resell | Brokerage receivables | All other assets(1) | Total | In millions of dollars | | Deposits with banks | Securities borrowed and purchased under agreements
to resell | | All other assets(1) | Total |
Allowance for credit losses on other assets
at beginning of year | Allowance for credit losses on other assets
at beginning of year | | $ | 20 | | $ | 10 | | $ | — | | $ | 25 | | $ | 55 | | Allowance for credit losses on other assets
at beginning of year | | $ | 51 | | $ | 36 | | | $ | 36 | | $ | 123 | |
| | Gross credit losses | Gross credit losses | | — | | — | | — | | — | | — | | Gross credit losses | | — | | — | | | (54) | | (54) | |
| Gross recoveries | Gross recoveries | | — | | — | | — | | — | | — | | Gross recoveries | | — | | — | | | 11 | | 11 | |
| Net credit losses (NCLs) | Net credit losses (NCLs) | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | Net credit losses (NCLs) | | $ | — | | $ | — | | | $ | (43) | | $ | (43) | |
| Replenishment of NCLs | Replenishment of NCLs | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | Replenishment of NCLs | | $ | — | | $ | — | | | $ | 43 | | $ | 43 | |
| Net reserve builds (releases) | Net reserve builds (releases) | | 5 | | (1) | | — | | (1) | | 3 | | Net reserve builds (releases) | | (23) | | 27 | | | 583 | | 587 | |
| Total provision for credit losses | Total provision for credit losses | | $ | 5 | | $ | (1) | | $ | — | | $ | (1) | | $ | 3 | | Total provision for credit losses | | $ | (23) | | $ | 27 | | | $ | 626 | | $ | 630 | |
| Other, net | Other, net | | $ | (1) | | $ | — | | $ | — | | $ | 1 | | $ | — | | Other, net | | $ | (1) | | $ | (10) | | | $ | (1) | | $ | (12) | |
Allowance for credit losses on other assets
at end of quarter | Allowance for credit losses on other assets
at end of quarter | | $ | 24 | | $ | 9 | | $ | — | | $ | 25 | | $ | 58 | | Allowance for credit losses on other assets
at end of quarter | | $ | 27 | | $ | 53 | | | $ | 618 | | $ | 698 | |
(1)Primarily an increase related to transfer risk associated with exposures outside of the U.S. driven by safety and soundness considerations under U.S. banking law.
| | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, 2022 |
| In millions of dollars | | Deposits with banks | Securities borrowed and purchased under agreements
to resell | Brokerage receivables | All other assets(1) | Total |
Allowance for credit losses on other assets
at beginning of quarter | | $ | 17 | | $ | 27 | | $ | — | | $ | 30 | | $ | 74 | |
| | | | | | |
| Gross credit losses | | — | | — | | — | | (4) | | (4) | |
| Gross recoveries | | — | | — | | — | | — | | — | |
| Net credit losses (NCLs) | | $ | — | | $ | — | | $ | — | | $ | (4) | | $ | (4) | |
| Replenishment of NCLs | | $ | — | | $ | — | | $ | — | | $ | 4 | | $ | 4 | |
| Net reserve builds (releases) | | 23 | | 45 | | — | | 1 | | 69 | |
| Total provision for credit losses | | $ | 23 | | $ | 45 | | $ | — | | $ | 5 | | $ | 73 | |
| Other, net | | $ | — | | $ | (3) | | $ | — | | $ | 1 | | $ | (2) | |
Allowance for credit losses on other assets
at end of quarter | | $ | 40 | | $ | 69 | | $ | — | | $ | 32 | | $ | 141 | |
| | Nine Months Ended September 30, 2022 |
| In millions of dollars | | Deposits with banks | Securities borrowed and purchased under agreements
to resell | Brokerage receivables | All other assets(1) | Total |
Allowance for credit losses on other assets
at beginning of year | | $ | 21 | | $ | 6 | | $ | — | | $ | 26 | | $ | 53 | |
| | | | | | |
| Gross credit losses | | — | | — | | — | | (19) | | (19) | |
| Gross recoveries | | — | | — | | — | | 2 | | 2 | |
| Net credit losses (NCLs) | | $ | — | | $ | — | | $ | — | | $ | (17) | | $ | (17) | |
| Replenishment of NCLs | | $ | — | | $ | — | | $ | — | | $ | 17 | | $ | 17 | |
| Net reserve builds (releases) | | 19 | | 35 | | — | | 5 | | 59 | |
| Total provision for credit losses | | $ | 19 | | $ | 35 | | $ | — | | $ | 22 | | $ | 76 | |
| Other, net | | $ | — | | $ | 28 | | $ | — | | $ | 1 | | $ | 29 | |
Allowance for credit losses on other assets
at end of quarter | | $ | 40 | | $ | 69 | | $ | — | | $ | 32 | | $ | 141 | |
(1) Primarily accounts receivable.
For ACL on AFS debt securities, see Note 12.
15. GOODWILL AND INTANGIBLE ASSETS
Goodwill
The changes in Goodwill were as follows:
| | | | | | | | | | | | | | |
| In millions of dollars | Institutional Clients Group | Personal Banking and Wealth Management | Legacy Franchises | Total |
| | | | |
| | | | |
| | | | |
| | | | |
| Balance at December 31, 2021 | $ | 9,215 | | $ | 9,717 | | $ | 2,367 | | $ | 21,299 | |
Impairment(1) | — | | — | | (535) | | (535) | |
Divestitures(2) | — | | — | | (873) | | (873) | |
| Foreign currency translation | (44) | | 18 | | — | | (26) | |
| Balance at March 31, 2022 | $ | 9,171 | | $ | 9,735 | | $ | 959 | | $ | 19,865 | |
| Foreign currency translation | (223) | | (20) | | (25) | | (268) | |
| Balance at June 30, 2022 | $ | 8,948 | | $ | 9,715 | | $ | 934 | | $ | 19,597 | |
| Foreign currency translation | (272) | | — | | 1 | | (271) | |
| Balance at September 30, 2022 | $ | 8,676 | | $ | 9,715 | | $ | 935 | | $ | 19,326 | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
(1)Goodwill impairment of $535 million (approximately $489 million after-tax) was incurred in the Asia Consumer reporting unit of Legacy Franchises in the first quarter of 2022, due to the re-segmentation and change of reporting units as well as the sequence of the signing of sale agreements.
(2)Primarily relates to Citi’s agreements to sell its consumer banking businesses in Malaysia, Thailand, Indonesia, Vietnam, Taiwan, India and Bahrain within Asia Consumer, during the first quarter of 2022 and reclassified as HFS as of March 31, 2022. See Note 2. | | | | | | | | | | | | | | |
| In millions of dollars | Institutional Clients Group | Personal Banking and Wealth Management | Legacy Franchises | Total |
| | | | |
| | | | |
| | | | |
| | | | |
| Balance at December 31, 2022 | $ | 8,986 | | $ | 9,741 | | $ | 964 | | $ | 19,691 | |
| | | | |
| | | | |
| Foreign currency translation | 42 | | 69 | | 80 | | 191 | |
| Balance at March 31, 2023 | $ | 9,028 | | $ | 9,810 | | $ | 1,044 | | $ | 19,882 | |
| Foreign currency translation | 13 | | 48 | | 55 | | 116 | |
| Balance at June 30, 2023 | $ | 9,041 | | $ | 9,858 | | $ | 1,099 | | $ | 19,998 | |
| Foreign currency translation | (132) | | (17) | | (20) | | (169) | |
| Balance at September 30, 2023 | $ | 8,909 | | $ | 9,841 | | $ | 1,079 | | $ | 19,829 | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Citi had historically performed its annualtests for goodwill impairment testannually as of JulyOctober 1 each year. During the quarter ended September 30, 2022, the Company voluntarily changed its(the annual impairment assessment date from July 1 to October 1. Based ontest) and conducts interim impairment tests performed within the periodassessments between the previous annual test on July 1, 2021 and the annual test to be performed on October 1, 2022, no more than 12 months will have elapsed between goodwill impairment tests of any of Citi’s reporting units. Theif an event occurs or circumstances change in measurement date represents a change in method of applying an accounting principle. This change is preferable because it better aligns the Company’s goodwill impairment testing procedures with its annual planning process and with its fiscal year-end. Citi continues to monitor each reporting unit for triggering events for purposes of goodwill impairment testing. The change in accounting principle did not result in any, nor does Citi expect the change in accounting principle to result in any, delay, acceleration or avoidance of an impairment charge.
As discussed in Note 3, effective January 1, 2022, as part of its strategic refresh, Citi made changes to its management structure, which resulted in changes in its operating segments and reporting units to reflect how the CEO, who is the chief operating decision maker, intends to manage the Company, allocate resources and measure performance. Goodwill balances were reallocated across the new reporting units based on their relative fair values using the valuation performed as of the effective date of the reorganization. Further, the goodwill balances associated with certain Asia Consumer businesses within the Legacy Franchises operating segment were reclassified to HFS as of March 31, 2022. See Note 2 for a discussion of Citi’s divestiture activities.
The reorganization of Citi’s reporting structure and the announced sales of businesses within a reporting unit were identified as triggering events for purposes of goodwill impairment testing. Consistent with the requirements of ASC
350, interim goodwill impairment tests were performed that resulted in an impairment of $535 million to the Asia Consumer reporting unit within the Legacy Franchises operating segment, due to the implementation of Citi’s revised operating segments and reporting units, as well as the timing of mutual execution of sale agreements for Asia consumer banking businesses. This impairment was recorded in the first quarter of 2022 as an operating expense. The interim goodwill impairment tests were performed using a combination of the income approach, market approach and bids from buyers, where available, to determinewould more-likely-than-not reduce the fair value of the reporting units.
During the second quarter of 2022, Citi’s Bankinga reporting unit within the ICG operating segment was negatively impacted by the industry-wide decline in investment banking activity and macroeconomic challenges and uncertainties. These conditions resulted in a corresponding decline in the operating results of the Banking reporting unit as of June 30, 2022 and were identified as a triggering event for purposes of goodwill impairment testing. Consistent with the requirements of ASC 350, an interim goodwill impairment test was performed that resulted in no impairment of the Banking reporting unit within the ICG operating segment. The results of the impairment test showed that the fair value of the Banking reporting unit as a percentage ofbelow its carrying value was 102%, with the carrying value including approximately $1.5 billion of goodwill.amount. No othersuch events or circumstances were identified for any other reporting unit as a triggering event for purposes of goodwill impairment testing. The interim goodwill impairment test was performed using a combinationpart of the income approach and market approach to determine the fair value of the reporting unit.
During the third quarter of 2022, Citi’s Banking reporting unit within the ICG operating segment continued to be negatively impacted by the industry-wide decline in investment banking activity amid ongoing macroeconomic
challenges and uncertainties. The presence of these conditions was identified as a triggering event for the purposes of goodwill impairment testing. Consistent with the requirements of ASC 350, an interim goodwill impairment test wasqualitative assessment performed that resulted in no impairment of the Banking reporting unit. The results of the impairment test showed that the fair value of the Banking reporting unit as a percentage of its carrying value was 106%, with the carrying value including approximately $1.5 billion of goodwill. No other events or circumstances were identified for any other reporting unit as a triggering event for purposes of goodwill impairment testing. The interim goodwill impairment test was performed using a combination of the income approach and market approach to determine the fair value of the reporting unit.
Also, during the third quarter of 2022, Citi performed an interim goodwill impairment test on the Mexico Consumer/SBMM reporting unit as of July 1, 2022 to satisfy the requirement that no more than 12 months elapse between the tests for all reporting units. The test resulted in no impairment as the fair value of the Mexico Consumer/SBMM reporting unit was greater than its carrying value. The interim goodwill impairment test was performed using the market approach to determine the fair value of the reporting unit.
For the interim impairment tests performed in 2022, the valuation of reporting units used either the market approach, income approach, or a combination of both. Under the market approach, Citi estimated fair value by comparing the business to similar businesses or guideline companies whose securities are actively traded in public markets. Under the income approach, Citi used a discounted cash flow (DCF) model in
which cash flows anticipated over several periods, plus a terminal value at the end of that time horizon, are discounted to their present value using an appropriate rate that is commensurate with the risk inherent within the reporting unit.
The key assumptions used to determine the fair value of Citi’s reporting units consisted primarily of significant unobservable inputs (Level 3 fair value inputs), including discount rates, estimated cash flows, growth rates, earnings multiples and/or transaction multiples of similar businesses or guideline public companies, and bids from buyers. The DCF method employs a capital asset pricing model in estimating the discount rate based on several factors, including market interest rates, and includes adjustments for market risk and company-specific risk. Estimated cash flows are based on internally developed estimates and the growth rates are based on industry knowledge and historical performance.
Based on the interim impairment tests, the fair values of all of Citi’s other reporting units as a percentage of their allocated carrying values ranged from approximately 106% to 267%, resulting in no further impairment recognized as of September 30, 2022.2023. For additional information regarding Citi’s goodwill impairment testing process, see Notes 1 and 16 to the Consolidated Financial Statements in Citi’s 2022 Form 10-K.
While the inherent risk ofrelated to uncertainty is embedded in the key assumptions used in the valuations of the reporting units, the economic and business environments continue to evolve as Citi’s management implements its strategic refresh. If management’s future estimateestimates of key economic and market assumptions were to differ from its current assumptions, Citi could potentially experience material goodwill impairment charges in the future.
Intangible Assets
The components of intangible assets were as follows:
| | | | September 30, 2022 | December 31, 2021 | | September 30, 2023 | December 31, 2022 |
| In millions of dollars | In millions of dollars | Gross
carrying
amount | Accumulated
amortization | Net
carrying
amount | Gross
carrying
amount | Accumulated
amortization | Net
carrying
amount | In millions of dollars | Gross
carrying
amount | Accumulated
amortization | Net
carrying
amount | Gross
carrying
amount | Accumulated
amortization | Net
carrying
amount |
Purchased credit card relationships | Purchased credit card relationships | $ | 5,513 | | $ | 4,391 | | $ | 1,122 | | $ | 5,579 | | $ | 4,348 | | $ | 1,231 | | Purchased credit card relationships | $ | 5,302 | | $ | 4,328 | | $ | 974 | | $ | 5,513 | | $ | 4,426 | | $ | 1,087 | |
Credit card contract-related intangibles(1)(2) | Credit card contract-related intangibles(1)(2) | 3,902 | | 1,479 | | 2,423 | | 3,912 | | 1,372 | | 2,540 | | Credit card contract-related intangibles(1)(2) | 4,178 | | 1,652 | | 2,526 | | 3,903 | | 1,518 | | 2,385 | |
| Core deposit intangibles | 35 | | 35 | | — | | 39 | | 39 | | — | | |
| Other customer relationships | Other customer relationships | 345 | | 256 | | 89 | | 429 | | 305 | | 124 | | Other customer relationships | 346 | | 270 | | 76 | | 373 | | 283 | | 90 | |
| Present value of future profits | Present value of future profits | 32 | | 30 | | 2 | | 31 | | 29 | | 2 | | Present value of future profits | 36 | | 35 | | 1 | | 32 | | 31 | | 1 | |
| Indefinite-lived intangible assets | Indefinite-lived intangible assets | 186 | | — | | 186 | | 183 | | — | | 183 | | Indefinite-lived intangible assets | 234 | | — | | 234 | | 192 | | — | | 192 | |
| Other | Other | 27 | | 11 | | 16 | | 37 | | 26 | | 11 | | Other | — | | — | | — | | 65 | | 57 | | 8 | |
| Intangible assets (excluding MSRs) | Intangible assets (excluding MSRs) | $ | 10,040 | | $ | 6,202 | | $ | 3,838 | | $ | 10,210 | | $ | 6,119 | | $ | 4,091 | | Intangible assets (excluding MSRs) | $ | 10,096 | | $ | 6,285 | | $ | 3,811 | | $ | 10,078 | | $ | 6,315 | | $ | 3,763 | |
Mortgage servicing rights (MSRs)(2) | 647 | | — | | 647 | | 404 | | — | | 404 | | |
Mortgage servicing rights (MSRs)(3) | | Mortgage servicing rights (MSRs)(3) | 729 | | — | | 729 | | 665 | | — | | 665 | |
| Total intangible assets | Total intangible assets | $ | 10,687 | | $ | 6,202 | | $ | 4,485 | | $ | 10,614 | | $ | 6,119 | | $ | 4,495 | | Total intangible assets | $ | 10,825 | | $ | 6,285 | | $ | 4,540 | | $ | 10,743 | | $ | 6,315 | | $ | 4,428 | |
(1)Primarily reflects contract-related intangibles associated with the American Airlines, The Home Depot, Costco and AT&T credit card program agreements, which represented 97% of the aggregate net carrying amount as of both September 30, 2022 and December 31, 2021.
(2)See Note 18 for additional information on Citi’s MSRs.
The changes in intangible assets were as follows:
| | In millions of dollars | In millions of dollars | Net carrying amount at December 31, 2021 | Acquisitions/renewals/
divestitures | Amortization | Impairments | FX translation and other | Net carrying amount at September 30, 2022 | In millions of dollars | Net carrying amount at December 31, 2022 | Acquisitions/renewals/
divestitures | Amortization | Impairments | FX translation and other | Net carrying amount at September 30, 2023 |
Purchased credit card relationships(1) | Purchased credit card relationships(1) | $ | 1,231 | | $ | 3 | | $ | (105) | | $ | — | | $ | (7) | | $ | 1,122 | | Purchased credit card relationships(1) | $ | 1,087 | | $ | — | | $ | (113) | | $ | — | | $ | — | | $ | 974 | |
Credit card contract-related intangibles(2) | Credit card contract-related intangibles(2) | 2,540 | | — | | (116) | | — | | (1) | | 2,423 | | Credit card contract-related intangibles(2) | 2,385 | | 290 | | (141) | | — | | (8) | | 2,526 | |
| Core deposit intangibles | — | | — | | — | | — | | — | | — | | |
| Other customer relationships | Other customer relationships | 124 | | 10 | | (18) | | — | | (27) | | 89 | | Other customer relationships | 90 | | 11 | | (18) | | — | | (7) | | 76 | |
| Present value of future profits | Present value of future profits | 2 | | — | | — | | — | | — | | 2 | | Present value of future profits | 1 | | — | | — | | — | | — | | 1 | |
| Indefinite-lived intangible assets | Indefinite-lived intangible assets | 183 | | — | | — | | — | | 3 | | 186 | | Indefinite-lived intangible assets | 192 | | 20 | | — | | — | | 22 | | 234 | |
| Other | Other | 11 | | 33 | | (25) | | — | | (3) | | 16 | | Other | 8 | | — | | (8) | | — | | — | | — | |
| Intangible assets (excluding MSRs) | Intangible assets (excluding MSRs) | $ | 4,091 | | $ | 46 | | $ | (264) | | $ | — | | $ | (35) | | $ | 3,838 | | Intangible assets (excluding MSRs) | $ | 3,763 | | $ | 321 | | $ | (280) | | $ | — | | $ | 7 | | $ | 3,811 | |
Mortgage servicing rights (MSRs)(3) | Mortgage servicing rights (MSRs)(3) | 404 | | | 647 | | Mortgage servicing rights (MSRs)(3) | 665 | | | 729 | |
| Total intangible assets | Total intangible assets | $ | 4,495 | | | $ | 4,485 | | Total intangible assets | $ | 4,428 | | | $ | 4,540 | |
(1)Reflects intangibles for the value of purchased cardholder relationships, which are discrete from partner contract-related intangibles, and includes credit card accounts primarily in the Costco, Macy’s and Sears portfolios.intangibles.
(2)Primarily reflectsReflects contract-related intangibles associated with the American Airlines, The Home Depot, Costco and AT&Textension or renewal of existing credit card program agreements which represented 97% ofwith card partners. For the aggregate net carrying amount as of both September 30, 2022 and December 31, 2021.credit card program agreement extended during 2023, the remaining term is over 10 years.
(3)See Note 1820 for additional information on Citi’s MSRs, including the rollforward for the three and nine months ended September 30, 2022.2023.
16. DEPOSITS
Deposits consisted of the following:
| | | | | | | | |
| September 30, | December 31, |
| In millions of dollars | 2023(1) | 2022 |
| Non-interest-bearing deposits in U.S. offices | $ | 104,061 | | $ | 122,655 | |
| Interest-bearing deposits in U.S. offices (including $1,001 and $903 as of September 30, 2023 and December 31, 2022, respectively, at fair value) | 569,428 | | 607,470 | |
| Non-interest-bearing deposits in offices outside the U.S. | 84,663 | | 95,182 | |
| Interest-bearing deposits in offices outside the U.S. (including $1,721 and $972 as of September 30, 2023 and December 31, 2022, respectively, at fair value) | 515,354 | | 540,647 | |
| Total deposits | $ | 1,273,506 | | $ | 1,365,954 | |
(1) For information on time deposits that met or exceeded the insured limit at December 31, 2022, see Note 17 to the Consolidated Financial Statements in Citi’s 2022 Form 10-K.
For additional information on Citi’s deposits, see Citi’s 2022 Form 10-K.
16.17. DEBT
For additional information regarding Citi’s short-term borrowings and long-term debt, see Note 1718 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
Short-Term Borrowings
| | In millions of dollars | In millions of dollars | September 30,
2022 | December 31,
2021 | In millions of dollars | September 30,
2023 | December 31,
2022 |
| Commercial paper | Commercial paper | | Commercial paper | |
Bank(1) | Bank(1) | $ | 11,113 | | $ | 9,026 | | Bank(1) | $ | 11,124 | | $ | 11,185 | |
Broker-dealer and other(2) | Broker-dealer and other(2) | 14,465 | | 6,992 | | Broker-dealer and other(2) | 11,719 | | 14,345 | |
| Total commercial paper | Total commercial paper | $ | 25,578 | | $ | 16,018 | | Total commercial paper | $ | 22,843 | | $ | 25,530 | |
Other borrowings(3) | Other borrowings(3) | 21,790 | | 11,955 | | Other borrowings(3) | 20,323 | | 21,566 | |
| Total | Total | $ | 47,368 | | $ | 27,973 | | Total | $ | 43,166 | | $ | 47,096 | |
(1)Represents Citibank entities as well as other bank entities.
(2)Represents broker-dealer and other non-bank subsidiaries that are consolidated into Citigroup Inc., the parent holding company.
(3)Includes borrowings from Federal Home Loan Banks and other market participants. At September 30, 20222023 and December 31, 2021,2022, collateralized short-term advances from the Federal Home Loan Banks were $9.0 billion and $12.0 billion, and $0.0respectively. At September 30, 2023, Other borrowings include $1.5 billion respectively.associated with the Series A preferred stock redemption announced on September 29, 2023, which was settled on October 30, 2023.
Long-Term Debt
| | In millions of dollars | In millions of dollars | September 30,
2022 | December 31, 2021 | In millions of dollars | September 30,
2023 | December 31, 2022 |
Citigroup Inc.(1) | Citigroup Inc.(1) | $ | 159,251 | | $ | 164,945 | | Citigroup Inc.(1) | $ | 160,571 | | $ | 166,257 | |
Bank(2) | Bank(2) | 22,463 | | 23,567 | | Bank(2) | 24,560 | | 21,113 | |
Broker-dealer and other(3) | Broker-dealer and other(3) | 71,354 | | 65,862 | | Broker-dealer and other(3) | 90,629 | | 84,236 | |
| Total | Total | $ | 253,068 | | $ | 254,374 | | Total | $ | 275,760 | | $ | 271,606 | |
(1)Represents the parent holding company.
(2)Represents Citibank entities as well as other bank entities. At September 30, 20222023 and December 31, 2021,2022, collateralized long-term advances from the Federal Home Loan Banks were $7.3$8.5 billion and $5.3$7.3 billion, respectively.
(3)Represents broker-dealer and other non-bank subsidiaries that are consolidated into Citigroup Inc., the parent holding company. Certain Citigroup consolidated hedging activities are also included in this line.
Long-term debt outstanding includes trust preferred securities with a balance sheet carrying value of $1.6 billion and $1.7 billion at September 30, 20222023 and December 31, 2021, respectively.2022.
The following table summarizes Citi’s outstanding trust preferred securities at September 30, 2022:2023:
| | | | | Junior subordinated debentures owned by trust | | | Junior subordinated debentures owned by trust |
| Trust | Trust | Issuance
date | Securities
issued | Liquidation value(1) | Coupon rate(2) | Common
shares
issued
to parent | Amount | Maturity | Redeemable
by issuer
beginning | Trust | Issuance
date | Securities
issued | Liquidation value(1) | Coupon rate(2) | Common
shares
issued
to parent | Notional amount | Maturity | Redeemable
by issuer
beginning |
| In millions of dollars, except securities and share amounts | In millions of dollars, except securities and share amounts | | In millions of dollars, except securities and share amounts | |
| Citigroup Capital III | Citigroup Capital III | Dec. 1996 | 194,053 | | $ | 194 | | 7.625 | % | 6,003 | | $ | 200 | | Dec. 1, 2036 | Not redeemable | Citigroup Capital III | Dec. 1996 | 194,053 | | $ | 194 | | 7.625 | % | 6,003 | | $ | 200 | | Dec. 1, 2036 | Not redeemable |
| Citigroup Capital XIII | Citigroup Capital XIII | Oct. 2010 | 89,840,000 | | 2,246 | | 3 mo. LIBOR + 637 bps | 1,000 | | 2,246 | | Oct. 30, 2040 | Oct. 30, 2015 | Citigroup Capital XIII | Oct. 2010 | 89,840,000 | | 2,246 | | 3 mo. SOFR +663.161 bps(3) | 1,000 | | 2,246 | | Oct. 30, 2040 | Oct. 30, 2015 |
| | Total obligated | Total obligated | | $ | 2,440 | | | | $ | 2,446 | | | Total obligated | | $ | 2,440 | | | | $ | 2,446 | | |
Note: Distributions on the trust preferred securities and interest on the subordinated debentures are payable semiannually for Citigroup Capital III and quarterly for Citigroup Capital XIII.
(1)Represents the notional value received by outside investors from the trusts at the time of issuance. This differs from Citi’s balance sheet carrying value due primarily to unamortized discount and issuance costs.
(2)In each case, the coupon rate on the subordinated debentures is the same as that on the trust preferred securities.
(3)The spread incorporates the contractual LIBOR-based spread and a 26.161 bps tenor spread adjustment.
17.18. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI)
Changes in each component of Citigroup’s Accumulated other comprehensive income (loss) were as follows:
Three and Nine Months Ended September 30, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| In millions of dollars | Net
unrealized
gains (losses)
on debt securities | Debt valuation adjustment (DVA)(1) | Cash flow hedges(2) | Benefit plans(3) | CTA, net of hedges(4) | Excluded component of fair value hedges | Long-duration insurance contracts(5) | Accumulated
other
comprehensive income (loss) |
Three Months Ended
September 30, 2023 | | | | | | | | |
| Balance, June 30, 2023 | $ | (5,036) | | $ | (102) | | $ | (1,990) | | $ | (5,995) | | $ | (32,773) | | $ | 5 | | $ | 26 | | $ | (45,865) | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Other comprehensive income before reclassifications | (176) | | 290 | | 366 | | 274 | | (1,496) | | (3) | | 23 | | (722) | |
Increase (decrease) due to amounts reclassified from AOCI | 7 | | 9 | | 365 | | 38 | | — | | (9) | | — | | 410 | |
Change, net of taxes | $ | (169) | | $ | 299 | | $ | 731 | | $ | 312 | | $ | (1,496) | | $ | (12) | | $ | 23 | | $ | (312) | |
| Balance at September 30, 2023 | $ | (5,205) | | $ | 197 | | $ | (1,259) | | $ | (5,683) | | $ | (34,269) | | $ | (7) | | $ | 49 | | $ | (46,177) | |
| Nine Months Ended September 30, 2023 | | | | | | | | |
| Balance, December 31, 2022 | $ | (5,998) | | $ | 842 | | $ | (2,522) | | $ | (5,755) | | $ | (33,637) | | $ | 8 | | $ | — | | $ | (47,062) | |
Adjustment to opening balance, net of taxes(6) | — | | — | | — | | — | | — | | — | | 27 | | 27 | |
| Adjusted balance, beginning of period | $ | (5,998) | | $ | 842 | | $ | (2,522) | | $ | (5,755) | | $ | (33,637) | | $ | 8 | | $ | 27 | | $ | (47,035) | |
| | | | | | | | |
| Other comprehensive income before reclassifications | 812 | | (650) | | 166 | | (28) | | (632) | | 8 | | 22 | | (302) | |
Increase (decrease) due to amounts reclassified from AOCI | (19) | | 5 | | 1,097 | | 100 | | — | | (23) | | — | | 1,160 | |
| Change, net of taxes | $ | 793 | | $ | (645) | | $ | 1,263 | | $ | 72 | | $ | (632) | | $ | (15) | | $ | 22 | | $ | 858 | |
| Balance at September 30, 2023 | $ | (5,205) | | $ | 197 | | $ | (1,259) | | $ | (5,683) | | $ | (34,269) | | $ | (7) | | $ | 49 | | $ | (46,177) | |
| | | | | | | | | | | | | | | | | | | | | | | |
| In millions of dollars | Net
unrealized
gains (losses)
on debt securities | Debt valuation adjustment (DVA)(1) | Cash flow hedges(2) | Benefit plans(3) | Foreign
currency
translation
adjustment (CTA), net of hedges(4)(5) | Excluded component of fair value hedges | Accumulated
other
comprehensive income (loss) |
| Three Months Ended September 30, 2022 | | | | | | | |
| Balance, June 30, 2022 | $ | (6,392) | | $ | 1,573 | | $ | (2,106) | | $ | (5,770) | | $ | (32,810) | | $ | 10 | | $ | (45,495) | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Other comprehensive income before
reclassifications | (595) | | 874 | | (870) | | 5 | | (2,423) | | 31 | | (2,978) | |
Increase (decrease) due to amounts reclassified from AOCI | 15 | | (2) | | 107 | | 32 | | 24 | | (1) | | 175 | |
Change, net of taxes | $ | (580) | | $ | 872 | | $ | (763) | | $ | 37 | | $ | (2,399) | | $ | 30 | | $ | (2,803) | |
| Balance at September 30, 2022 | $ | (6,972) | | $ | 2,445 | | $ | (2,869) | | $ | (5,733) | | $ | (35,209) | | $ | 40 | | $ | (48,298) | |
| Nine Months Ended September 30, 2022 | | | | | | | |
| Balance, December 31, 2021 | $ | (614) | | $ | (1,187) | | $ | 101 | | $ | (5,852) | | $ | (31,166) | | $ | (47) | | $ | (38,765) | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Other comprehensive income before
reclassifications | (6,490) | | 3,635 | | (2,709) | | 26 | | (4,412) | | 81 | | (9,869) | |
Increase (decrease) due to amounts reclassified from AOCI | 132 | | (3) | | (261) | | 93 | | 369 | | 6 | | 336 | |
| Change, net of taxes | $ | (6,358) | | $ | 3,632 | | $ | (2,970) | | $ | 119 | | $ | (4,043) | | $ | 87 | | $ | (9,533) | |
| Balance at September 30, 2022 | $ | (6,972) | | $ | 2,445 | | $ | (2,869) | | $ | (5,733) | | $ | (35,209) | | $ | 40 | | $ | (48,298) | |
Footnotes to the table above appear on the following page.
Three and Nine Months Ended September 30, 2021
| | | | | | | | | | | | | | | | | | | | | | | |
| In millions of dollars | Net
unrealized
gains (losses)
on debt securities | Debt valuation adjustment (DVA)(1) | Cash flow hedges(2) | Benefit plans(3) | Foreign
currency
translation
adjustment (CTA), net of hedges(4) | Excluded component of fair value hedges | Accumulated
other
comprehensive income (loss) |
| Three Months Ended September 30, 2021 | | | | | | | |
| Balance, June 30, 2021 | $ | 1,061 | | $ | (1,523) | | $ | 864 | | $ | (6,063) | | $ | (29,392) | | $ | (67) | | $ | (35,120) | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Other comprehensive income before
reclassifications | (204) | | (138) | | 2 | | 84 | | (1,325) | | 7 | | (1,574) | |
Increase (decrease) due to amounts reclassified from AOCI | (75) | | 56 | | (203) | | 51 | | 13 | | 1 | | (157) | |
Change, net of taxes | $ | (279) | | $ | (82) | | $ | (201) | | $ | 135 | | $ | (1,312) | | $ | 8 | | $ | (1,731) | |
| Balance at September 30, 2021 | $ | 782 | | $ | (1,605) | | $ | 663 | | $ | (5,928) | | $ | (30,704) | | $ | (59) | | $ | (36,851) | |
| Nine Months Ended September 30, 2021 | | | | | | | |
| Balance, December 31, 2020 | $ | 3,320 | | $ | (1,419) | | $ | 1,593 | | $ | (6,864) | | $ | (28,641) | | $ | (47) | | $ | (32,058) | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Other comprehensive income before
reclassifications | (2,101) | | (295) | | (318) | | 773 | | (2,076) | | (14) | | (4,031) | |
Increase (decrease) due to amounts reclassified from AOCI | (437) | | 109 | | (612) | | 163 | | 13 | | 2 | | (762) | |
| Change, net of taxes | $ | (2,538) | | $ | (186) | | $ | (930) | | $ | 936 | | $ | (2,063) | | $ | (12) | | $ | (4,793) | |
| Balance at September 30, 2021 | $ | 782 | | $ | (1,605) | | $ | 663 | | $ | (5,928) | | $ | (30,704) | | $ | (59) | | $ | (36,851) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| In millions of dollars | Net
unrealized
gains (losses)
on debt securities | Debt valuation adjustment (DVA)(1) | Cash flow hedges(2) | Benefit plans(3) | CTA, net of hedges(4) | Excluded component of fair value hedges | Long-duration insurance contracts | Accumulated
other
comprehensive income (loss) |
| Three Months Ended September 30, 2022 | | | | | | | | |
| Balance, June 30, 2022 | $ | (6,392) | | $ | 1,573 | | $ | (2,106) | | $ | (5,770) | | $ | (32,810) | | $ | 10 | | $ | — | | $ | (45,495) | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Other comprehensive income before reclassifications | (595) | | 874 | | (870) | | 5 | | (2,423) | | 31 | | — | | (2,978) | |
Increase (decrease) due to amounts reclassified from AOCI | 15 | | (2) | | 107 | | 32 | | 24 | | (1) | | — | | 175 | |
Change, net of taxes | $ | (580) | | $ | 872 | | $ | (763) | | $ | 37 | | $ | (2,399) | | $ | 30 | | $ | — | | $ | (2,803) | |
| Balance at September 30, 2022 | $ | (6,972) | | $ | 2,445 | | $ | (2,869) | | $ | (5,733) | | $ | (35,209) | | $ | 40 | | $ | — | | $ | (48,298) | |
| Nine Months Ended September 30, 2022 | | | | | | | | |
| Balance, December 31, 2021 | $ | (614) | | $ | (1,187) | | $ | 101 | | $ | (5,852) | | $ | (31,166) | | $ | (47) | | $ | — | | $ | (38,765) | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Other comprehensive income before reclassifications | (6,490) | | 3,635 | | (2,709) | | 26 | | (4,412) | | 81 | | — | | (9,869) | |
Increase (decrease) due to amounts reclassified from AOCI | 132 | | (3) | | (261) | | 93 | | 369 | | 6 | | — | | 336 | |
| Change, net of taxes | $ | (6,358) | | $ | 3,632 | | $ | (2,970) | | $ | 119 | | $ | (4,043) | | $ | 87 | | $ | — | | $ | (9,533) | |
| Balance at September 30, 2022 | $ | (6,972) | | $ | 2,445 | | $ | (2,869) | | $ | (5,733) | | $ | (35,209) | | $ | 40 | | $ | — | | $ | (48,298) | |
(1)Reflects the after-tax valuation of Citi’s fair value option liabilities. See “Market Valuation Adjustments” in Note 20.22.
(2)Primarily driven by Citi’s pay floating/receive fixed interest rate swap programs that hedge certain floating rates on assets.
(3)Primarily reflects adjustments based on the quarterly actuarial valuations of the Company’s significant pension and postretirement plans, annual actuarial valuations of all other plans and amortization of amounts previously recognized in other comprehensive income.
(4)Primarily reflects the movements in (by order of impact) the Mexican peso, Chilean peso, Euro, Polish zloty and Brazilian real against the U.S. dollar and changes in related tax effects and hedges for the three months ended September 30, 2023. Primarily reflects the movements in (by order of impact) the Mexican peso, Russian ruble, Japanese yen, South Korean won and Chilean peso against the U.S. dollar and changes in related tax effects and hedges for the nine months ended September 30, 2023. Primarily reflects the movements in (by order of impact) the South Korean won, Euro, Russian ruble, Mexican peso, Polish zloty and Japanese yen against the U.S. dollar and changes in related tax effects and hedges for the three months ended September 30, 2022. Primarily reflects the movements in (by order of impact) the South Korean won, Euro, Japanese yen, Indian rupee, Chinese yuan and British pound sterling against the U.S. dollar and changes in related tax effects and hedges for the nine months ended September 30, 2022. Primarily reflects the movements in (by order of impact) the Mexican peso, South Korean won, Euro, Chilean peso and Brazilian real against the U.S. dollar and changes in related tax effects and hedges for the three months ended September 30, 2021. Primarily reflects the movements in (by order of impact) the Mexican peso, South Korean won, Euro, Chilean peso and Japanese yen against the U.S. dollar and changes in related tax effects and hedges for the nine months ended September 30, 2021. Amounts recorded in the CTA component of AOCI remain in AOCI until the sale or substantial liquidation of the foreign entity, at which point such amounts related to the foreign entity are reclassified into earnings.
(5)Reflects the change in the liability for future policyholder benefits for certain long-duration life-contingent annuity contracts that are issued by a regulated Citi insurance subsidiary in Mexico and reported within Legacy Franchises. The amount reflects the change in the liability after discounting using an upper-medium grade fixed income instrument yield that reflects the duration characteristics of the liability. As of September 30, 2022 reflects a reduction2023, the balance of the liability for future policyholder benefits, which is recorded within Other Liabilities, for this insurance subsidiary was approximately $470 million (after-tax) ($620 million pretax) currency translation adjustment (CTA) loss (net of hedges) recorded in June 2022, associated with the closing of Citi’s sale of its consumer banking business in Australia (see Note 2). The reduction from AOCI had a neutral impact on Citi’s Common Equity Tier 1 Capital.$519 million.
The pretax and after-tax changes in each component of Accumulated other comprehensive income (loss) were as follows:
Three and Nine Months Ended September 30, 2022 | | | | | | | | | | | |
| In millions of dollars | Pretax | Tax effect(1) | After-tax |
| Three Months Ended September 30, 2023 | | | |
| Balance, June 30, 2023 | $ | (53,964) | | $ | 8,099 | | $ | (45,865) | |
| | | |
| | | |
| Change in net unrealized gains (losses) on debt securities | (227) | | 58 | | (169) | |
| Debt valuation adjustment (DVA) | 395 | | (96) | | 299 | |
| Cash flow hedges | 958 | | (227) | | 731 | |
| Benefit plans | 380 | | (68) | | 312 | |
| Foreign currency translation adjustment (CTA) | (1,532) | | 36 | | (1,496) | |
| Excluded component of fair value hedges | (10) | | (2) | | (12) | |
| Long-duration insurance contracts | 33 | | (10) | | 23 | |
| Change | $ | (3) | | $ | (309) | | $ | (312) | |
| Balance at September 30, 2023 | $ | (53,967) | | $ | 7,790 | | $ | (46,177) | |
| Nine Months Ended September 30, 2023 | | | |
| Balance, December 31, 2022 | $ | (55,253) | | $ | 8,191 | | $ | (47,062) | |
Adjustment to opening balance(2) | 39 | | (12) | | 27 | |
| Adjusted balance, beginning of period | $ | (55,214) | | $ | 8,179 | | $ | (47,035) | |
| Change in net unrealized gains (losses) on debt securities | 1,095 | | (302) | | 793 | |
| DVA | (875) | | 230 | | (645) | |
| Cash flow hedges | 1,670 | | (407) | | 1,263 | |
| Benefit plans | 68 | | 4 | | 72 | |
| CTA | (728) | | 96 | | (632) | |
| Excluded component of fair value hedges | (14) | | (1) | | (15) | |
| Long-duration insurance contracts | 31 | | (9) | | 22 | |
| Change | $ | 1,247 | | $ | (389) | | $ | 858 | |
| Balance at September 30, 2023 | $ | (53,967) | | $ | 7,790 | | $ | (46,177) | |
| | | | | | | | | | | |
| In millions of dollars | Pretax | Tax effect | After-tax |
| Three Months Ended September 30, 2022 | | | |
| Balance, June 30, 2022 | $ | (53,566) | | $ | 8,071 | | $ | (45,495) | |
| | | |
| | | |
| Change in net unrealized gains (losses) on debt securities | (850) | | 270 | | (580) | |
| Debt valuation adjustment (DVA) | 1,159 | | (287) | | 872 | |
| Cash flow hedges | (1,025) | | 262 | | (763) | |
| Benefit plans | (4) | | 41 | | 37 | |
| Foreign currency translation adjustment | (2,238) | | (161) | | (2,399) | |
| Excluded component of fair value hedges | 40 | | (10) | | 30 | |
| Change | $ | (2,918) | | $ | 115 | | $ | (2,803) | |
| Balance at September 30, 2022 | $ | (56,484) | | $ | 8,186 | | $ | (48,298) | |
| Nine Months Ended September 30, 2022 | | | |
| Balance, December 31, 2021 | $ | (45,383) | | $ | 6,618 | | $ | (38,765) | |
| | | |
| | | |
| Change in net unrealized gains (losses) on debt securities | (8,464) | | 2,106 | | (6,358) | |
| Debt valuation adjustment (DVA) | 4,800 | | (1,168) | | 3,632 | |
| Cash flow hedges | (3,933) | | 963 | | (2,970) | |
| Benefit plans | 100 | | 19 | | 119 | |
| Foreign currency translation adjustment | (3,720) | | (323) | | (4,043) | |
| Excluded component of fair value hedges | 116 | | (29) | | 87 | |
| Change | $ | (11,101) | | $ | 1,568 | | $ | (9,533) | |
| Balance at September 30, 2022 | $ | (56,484) | | $ | 8,186 | | $ | (48,298) | |
| | | | | | | | | | | |
| In millions of dollars | Pretax | Tax effect(1) | After-tax |
| Three Months Ended September 30, 2022 | | | |
| Balance, June 30, 2022 | $ | (53,566) | | $ | 8,071 | | $ | (45,495) | |
| | | |
| | | |
| Change in net unrealized gains (losses) on debt securities | (850) | | 270 | | (580) | |
| DVA | 1,159 | | (287) | | 872 | |
| Cash flow hedges | (1,025) | | 262 | | (763) | |
| Benefit plans | (4) | | 41 | | 37 | |
| CTA | (2,238) | | (161) | | (2,399) | |
| Excluded component of fair value hedges | 40 | | (10) | | 30 | |
| Long-duration insurance contracts | — | | — | | — | |
| Change | $ | (2,918) | | $ | 115 | | $ | (2,803) | |
| Balance, September 30, 2022 | $ | (56,484) | | $ | 8,186 | | $ | (48,298) | |
| Nine Months Ended September 30, 2022 | | | |
| Balance, December 31, 2021 | $ | (45,383) | | $ | 6,618 | | $ | (38,765) | |
| | | |
| | | |
| Change in net unrealized gains (losses) on debt securities | (8,464) | | 2,106 | | (6,358) | |
| DVA | 4,800 | | (1,168) | | 3,632 | |
| Cash flow hedges | (3,933) | | 963 | | (2,970) | |
| Benefit plans | 100 | | 19 | | 119 | |
| CTA | (3,720) | | (323) | | (4,043) | |
| Excluded component of fair value hedges | 116 | | (29) | | 87 | |
| Long-duration insurance contracts | — | | — | | — | |
| Change | $ | (11,101) | | $ | 1,568 | | $ | (9,533) | |
| Balance, September 30, 2022 | $ | (56,484) | | $ | 8,186 | | $ | (48,298) | |
Three and Nine Months Ended September 30, 2021
| | | | | | | | | | | |
| In millions of dollars | Pretax | Tax effect | After-tax |
| Three Months Ended September 30, 2021 | | | |
| Balance, June 30, 2021 | $ | (41,087) | | $ | 5,967 | | $ | (35,120) | |
| | | |
| | | |
| Change in net unrealized gains (losses) on debt securities | (374) | | 95 | | (279) | |
| Debt valuation adjustment (DVA) | (107) | | 25 | | (82) | |
| Cash flow hedges | (265) | | 64 | | (201) | |
| Benefit plans | 175 | | (40) | | 135 | |
| Foreign currency translation adjustment | (1,325) | | 13 | | (1,312) | |
| Excluded component of fair value hedges | 12 | | (4) | | 8 | |
| Change | $ | (1,884) | | $ | 153 | | $ | (1,731) | |
| Balance, September 30, 2021 | $ | (42,971) | | $ | 6,120 | | $ | (36,851) | |
| Nine Months Ended September 30, 2021 | | | |
| Balance, December 31, 2020 | $ | (36,992) | | $ | 4,934 | | $ | (32,058) | |
| | | |
| | | |
| Change in net unrealized gains (losses) on debt securities | (3,439) | | 901 | | (2,538) | |
| Debt valuation adjustment (DVA) | (256) | | 70 | | (186) | |
| Cash flow hedges | (1,219) | | 289 | | (930) | |
| Benefit plans | 1,166 | | (230) | | 936 | |
| Foreign currency translation adjustment | (2,217) | | 154 | | (2,063) | |
| Excluded component of fair value hedges | (14) | | 2 | | (12) | |
| Change | $ | (5,979) | | $ | 1,186 | | $ | (4,793) | |
| Balance, September 30, 2021 | $ | (42,971) | | $ | 6,120 | | $ | (36,851) | |
The Company recognized pretax (gains) losses related to amounts in AOCI reclassified to the Consolidated Statement of Income as follows:
| | | Increase (decrease) in AOCI due to
amounts reclassified to
Consolidated Statement of Income | | Increase (decrease) in AOCI due to
amounts reclassified to
Consolidated Statement of Income |
| | Three Months Ended September 30, | Nine Months Ended September 30, | | Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | In millions of dollars | 2022 | 2021 | 2022 | 2021 | In millions of dollars | 2023 | 2022 | 2023 | 2022 |
| Realized (gains) losses on sales of investments | Realized (gains) losses on sales of investments | $ | (52) | | $ | (117) | | $ | (74) | | $ | (655) | | Realized (gains) losses on sales of investments | $ | (30) | | $ | (52) | | $ | (151) | | $ | (74) | |
| Gross impairment losses | Gross impairment losses | 74 | | 21 | | 254 | | 99 | | Gross impairment losses | 43 | | 74 | | 137 | | 254 | |
| Subtotal, pretax | Subtotal, pretax | $ | 22 | | $ | (96) | | $ | 180 | | $ | (556) | | Subtotal, pretax | $ | 13 | | $ | 22 | | $ | (14) | | $ | 180 | |
| Tax effect | Tax effect | (7) | | 21 | | (48) | | 119 | | Tax effect | (6) | | (7) | | (5) | | (48) | |
Net realized (gains) losses on investments after-tax(1) | $ | 15 | | $ | (75) | | $ | 132 | | $ | (437) | | |
Net realized (gains) losses on investments, after-tax(1) | | Net realized (gains) losses on investments, after-tax(1) | $ | 7 | | $ | 15 | | $ | (19) | | $ | 132 | |
| Realized DVA (gains) losses on fair value option liabilities, pretax | Realized DVA (gains) losses on fair value option liabilities, pretax | $ | (3) | | $ | 72 | | $ | (4) | | $ | 141 | | Realized DVA (gains) losses on fair value option liabilities, pretax | $ | 12 | | $ | (3) | | $ | 8 | | $ | (4) | |
| Tax effect | Tax effect | 1 | | (16) | | 1 | | (32) | | Tax effect | (3) | | 1 | | (3) | | 1 | |
| Net realized DVA, after-tax | Net realized DVA, after-tax | $ | (2) | | $ | 56 | | $ | (3) | | $ | 109 | | Net realized DVA, after-tax | $ | 9 | | $ | (2) | | $ | 5 | | $ | (3) | |
| Interest rate contracts | Interest rate contracts | $ | 141 | | $ | (269) | | $ | (344) | | $ | (809) | | Interest rate contracts | $ | 480 | | $ | 141 | | $ | 1,444 | | $ | (344) | |
| Foreign exchange contracts | Foreign exchange contracts | 1 | | 1 | | 3 | | 3 | | Foreign exchange contracts | 1 | | 1 | | 3 | | 3 | |
| Subtotal, pretax | Subtotal, pretax | $ | 142 | | $ | (268) | | $ | (341) | | $ | (806) | | Subtotal, pretax | $ | 481 | | $ | 142 | | $ | 1,447 | | $ | (341) | |
| Tax effect | Tax effect | (35) | | 65 | | 80 | | 194 | | Tax effect | (116) | | (35) | | (350) | | 80 | |
Amortization of cash flow hedges, after-tax(2) | Amortization of cash flow hedges, after-tax(2) | $ | 107 | | $ | (203) | | $ | (261) | | $ | (612) | | Amortization of cash flow hedges, after-tax(2) | $ | 365 | | $ | 107 | | $ | 1,097 | | $ | (261) | |
| Amortization of unrecognized: | Amortization of unrecognized: | | | | Amortization of unrecognized: | | | |
| Prior service cost (benefit) | Prior service cost (benefit) | $ | (6) | | $ | (5) | | $ | (17) | | $ | (17) | | Prior service cost (benefit) | $ | (6) | | $ | (6) | | $ | (17) | | $ | (17) | |
| Net actuarial loss | Net actuarial loss | 49 | | 74 | | 177 | | 232 | | Net actuarial loss | 52 | | 49 | | 152 | | 177 | |
| Curtailment/settlement impact(3) | Curtailment/settlement impact(3) | — | | 1 | | (33) | | 5 | | Curtailment/settlement impact(3) | 5 | | — | | 1 | | (33) | |
| Subtotal, pretax | Subtotal, pretax | $ | 43 | | $ | 70 | | $ | 127 | | $ | 220 | | Subtotal, pretax | $ | 51 | | $ | 43 | | $ | 136 | | $ | 127 | |
| Tax effect | Tax effect | (11) | | (19) | | (34) | | (57) | | Tax effect | (13) | | (11) | | (36) | | (34) | |
Amortization of benefit plans, after-tax(3) | Amortization of benefit plans, after-tax(3) | $ | 32 | | $ | 51 | | $ | 93 | | $ | 163 | | Amortization of benefit plans, after-tax(3) | $ | 38 | | $ | 32 | | $ | 100 | | $ | 93 | |
| Excluded component of fair value hedges, pretax | Excluded component of fair value hedges, pretax | $ | (1) | | $ | 1 | | $ | 9 | | $ | 2 | | Excluded component of fair value hedges, pretax | $ | (12) | | $ | (1) | | $ | (31) | | $ | 9 | |
| Tax effect | Tax effect | — | | — | | (3) | | — | | Tax effect | 3 | | — | | 8 | | (3) | |
| Excluded component of fair value hedges, after-tax | Excluded component of fair value hedges, after-tax | $ | (1) | | $ | 1 | | $ | 6 | | $ | 2 | | Excluded component of fair value hedges, after-tax | $ | (9) | | $ | (1) | | $ | (23) | | $ | 6 | |
| Foreign currency translation adjustment, pretax | $ | 26 | | $ | 20 | | $ | 423 | | $ | 20 | | |
| Long-duration insurance contracts, pretax | | Long-duration insurance contracts, pretax | $ | — | | $ | — | | $ | — | | $ | — | |
| Tax effect | Tax effect | (2) | | (7) | | (54) | | (7) | | Tax effect | — | | — | | — | | — | |
| Foreign currency translation adjustment, after-tax | $ | 24 | | $ | 13 | | $ | 369 | | $ | 13 | | |
| Long-duration insurance contracts, after-tax | | Long-duration insurance contracts, after-tax | $ | — | | $ | — | | $ | — | | $ | — | |
| CTA, pretax | | CTA, pretax | $ | — | | $ | 26 | | $ | — | | $ | 423 | |
| Tax effect | | Tax effect | — | | (2) | | — | | (54) | |
CTA, after-tax(4) | | CTA, after-tax(4) | $ | — | | $ | 24 | | $ | — | | $ | 369 | |
Total amounts reclassified out of AOCI, pretax | Total amounts reclassified out of AOCI, pretax | $ | 229 | | $ | (201) | | $ | 394 | | $ | (979) | | Total amounts reclassified out of AOCI, pretax | $ | 545 | | $ | 229 | | $ | 1,546 | | $ | 394 | |
| Total tax effect | Total tax effect | (54) | | 44 | | (58) | | 217 | | Total tax effect | (135) | | (54) | | (386) | | (58) | |
Total amounts reclassified out of AOCI, after-tax | Total amounts reclassified out of AOCI, after-tax | $ | 175 | | $ | (157) | | $ | 336 | | $ | (762) | | Total amounts reclassified out of AOCI, after-tax | $ | 410 | | $ | 175 | | $ | 1,160 | | $ | 336 | |
(1)The pretax amount is reclassified to Realized gains (losses) on sales of investments, net and Gross impairment losses in the Consolidated Statement of Income. See Note 12 for additional details.
(2)See Note 1921 for additional details.
(3)See Note 8 for additional details.
18.19. PREFERRED STOCK
The following table summarizes the Company’s preferred stock outstanding:
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | Dividend rate as of September 30, 2023 | Redemption
price per depositary share/preference share | | Carrying value (in millions of dollars) |
| | Issuance date | Redeemable by issuer beginning | Number
of depositary
shares | September 30,
2023 | December 31,
2022 |
Series A(1) | October 29, 2012 | January 30, 2023 | N/A | $ | 1,000 | | 1,500,000 | | $ | — | | $ | 1,500 | |
Series B(2) | December 13, 2012 | February 15, 2023 | N/A | 1,000 | | 750,000 | | — | | 750 | |
Series D(3) | April 30, 2013 | May 15, 2023 | 3-month SOFR+ 3.72761 | 1,000 | | 1,250,000 | | 1,250 | | 1,250 | |
Series J(4) | September 19, 2013 | September 30, 2023 | 3-month SOFR+ 4.30161 | 25 | | 38,000,000 | | 950 | | 950 | |
Series K(5) | October 31, 2013 | November 15, 2023 | 6.875 | % | 25 | | 59,800,000 | | 1,495 | | 1,495 | |
Series M(6) | April 30, 2014 | May 15, 2024 | 6.300 | | 1,000 | | 1,750,000 | | 1,750 | | 1,750 | |
Series P(7) | April 24, 2015 | May 15, 2025 | 5.950 | | 1,000 | | 2,000,000 | | 2,000 | | 2,000 | |
Series T(8) | April 25, 2016 | August 15, 2026 | 6.250 | | 1,000 | | 1,500,000 | | 1,500 | | 1,500 | |
Series U(9) | September 12, 2019 | September 12, 2024 | 5.000 | | 1,000 | | 1,500,000 | | 1,500 | | 1,500 | |
Series V(10) | January 23, 2020 | January 30, 2025 | 4.700 | | 1,000 | | 1,500,000 | | 1,500 | | 1,500 | |
Series W(11) | December 10, 2020 | December 10, 2025 | 4.000 | | 1,000 | | 1,500,000 | | 1,500 | | 1,500 | |
Series X(12) | February 18, 2021 | February 18, 2026 | 3.875 | | 1,000 | | 2,300,000 | | 2,300 | | 2,300 | |
Series Y(13) | October 27, 2021 | November 15, 2026 | 4.150 | | 1,000 | | 1,000,000 | | 1,000 | | 1,000 | |
Series Z(14) | March 7, 2023 | May 15, 2028 | 7.375 | | 1,000 | | 1,250,000 | | 1,250 | | — | |
Series AA(15) | September 21, 2023 | November 15, 2028 | 7.625 | | 1,000 | | 1,500,000 | | 1,500 | | — | |
| | | | | | $ | 19,495 | | $ | 18,995 | |
(1)Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Beginning in the second quarter of 2023, dividends are payable quarterly on January 30, April 30, July 30 and October 30 at a floating rate, in each case when, as and if declared by the Citi Board of Directors. Series A was reclassified to Short-term borrowings at the time of the announcement of redemption on September 29, 2023. Citi redeemed Series A in its entirety on October 30, 2023.
(2)Citi redeemed Series B in its entirety on August 15, 2023.
(3)Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Beginning in the third quarter of 2023, dividends are payable quarterly on February 15, May 15, August 15 and November 15 at a floating rate, in each case when, as and if declared by the Citi Board of Directors. The spread incorporates the contractual LIBOR-based spread and a 0.26161% tenor spread adjustment.
(4)Issued as depositary shares, each representing a 1/1,000th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable quarterly on March 30, June 30, September 30 and December 30 at a fixed rate until, but excluding, September 30, 2023, thereafter payable quarterly on the same dates at a floating rate, in each case when, as and if declared by the Citi Board of Directors. Beginning in the fourth quarter of 2023, dividends are payable quarterly on March 30, June 30, September 30 and December 30 at a floating rate, in each case when, as and if declared by the Citi Board of Directors. The spread incorporates the contractual LIBOR-based spread and a 0.26161% tenor spread adjustment.
(5)Issued as depositary shares, each representing a 1/1,000th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable quarterly on February 15, May 15, August 15 and November 15 at a fixed rate until, but excluding, November 15, 2023, thereafter payable quarterly on the same dates at a floating rate, in each case when, as and if declared by the Citi Board of Directors. As previously announced, Citi will be redeeming Series K in its entirety on November 15, 2023.
(6)Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable semiannually on May 15 and November 15 at a fixed rate until, but excluding, May 15, 2024, thereafter payable quarterly on February 15, May 15, August 15 and November 15 at a floating rate, in each case when, as and if declared by the Citi Board of Directors.
(7)Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable semiannually on May 15 and November 15 at a fixed rate until, but excluding, May 15, 2025, and thereafter payable quarterly on February 15, May 15, August 15 and November 15 at a floating rate, in each case when, as and if declared by the Citi Board of Directors.
(8)Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable semiannually on February 15 and August 15 at a fixed rate until, but excluding, August 15, 2026, thereafter payable quarterly on February 15, May 15, August 15 and November 15 at a floating rate, in each case when, as and if declared by the Citi Board of Directors.
(9)Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable semiannually on March 12 and September 12 at a fixed rate until, but excluding, September 12, 2024, thereafter payable quarterly on March 12, June 12, September 12 and December 12 at a floating rate, in each case when, as and if declared by the Citi Board of Directors.
(10)Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable semiannually on January 30 and July 30 at a fixed rate until, but excluding, January 30, 2025, thereafter payable quarterly on January 30, April 30, July 30 and October 30 at a floating rate, in each case when, as and if declared by the Citi Board of Directors.
(11)Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable quarterly on March 10, June 10, September 10 and December 10 at a fixed rate until, but excluding, December 10, 2025, thereafter payable quarterly on the same dates at a floating rate, in each case when, as and if declared by the Citi Board of Directors.
(12)Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable quarterly on February 18, May 18, August 18 and November 18 at a fixed rate until, but excluding, February 18, 2026, thereafter payable quarterly on the same dates at a floating rate, in each case when, as and if declared by the Citi Board of Directors.
(13)Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable quarterly on February 15, May 15, August 15 and November 15 at a fixed rate until, but excluding, November 15, 2026, thereafter payable quarterly on the same dates at a floating rate, in each case when, as and if declared by the Citi Board of Directors.
(14)Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable quarterly on February 15, May 15, August 15 and November 15 at a fixed rate until, but excluding, May 15, 2028, thereafter payable quarterly on the same dates at a floating rate, in each case when, as and if declared by the Citi Board of Directors.
(15)Issued as depositary shares, each representing a 1/25th interest in a share of the corresponding series of non-cumulative perpetual preferred stock. Dividends are payable quarterly on February 15, May 15, August 15 and November 15 at a fixed rate until, but excluding, November 15, 2028, thereafter payable quarterly on the same dates at a floating rate, in each case when, as and if declared by the Citi Board of Directors.
N/A Not applicable, as the series has been redeemed.
20. SECURITIZATIONS AND VARIABLE INTEREST ENTITIES
For additional information regarding Citi’s use of special purpose entities (SPEs) and variable interest entities (VIEs), see Note 2122 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
Citigroup’s involvement with consolidated and unconsolidated VIEs with which the Company holds significant variable interests or has continuing involvement through servicing a majority of the assets in a VIE is presented below:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| As of September 30, 2022 |
| | | | Maximum exposure to loss in significant unconsolidated VIEs(1) |
| | | | Funded exposures(2) | Unfunded exposures | |
| In millions of dollars | Total
involvement
with SPE
assets | Consolidated
VIE/SPE assets | Significant unconsolidated VIE assets(3) | Debt
investments | Equity
investments | Funding
commitments | Guarantees
and
derivatives | Total |
| Credit card securitizations | $ | 31,139 | | $ | 31,139 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
Mortgage securitizations(4) | | | | | | | | |
| U.S. agency-sponsored | 112,923 | | — | | 112,923 | | 2,019 | | — | | — | | 49 | | 2,068 | |
| Non-agency-sponsored | 59,730 | | — | | 59,730 | | 2,606 | | — | | 7 | | — | | 2,613 | |
| Citi-administered asset-backed commercial paper conduits | 15,583 | | 15,583 | | — | | — | | — | | — | | — | | — | |
| Collateralized loan obligations (CLOs) | 7,563 | | — | | 7,563 | | 2,580 | | — | | — | | — | | 2,580 | |
Asset-based financing(5) | 236,093 | | 8,929 | | 227,164 | | 36,588 | | 1,050 | | 11,421 | | — | | 49,059 | |
| Municipal securities tender option bond trusts (TOBs) | 2,521 | | 665 | | 1,856 | | 10 | | — | | 1,395 | | — | | 1,405 | |
| Municipal investments | 21,677 | | 3 | | 21,674 | | 2,738 | | 3,252 | | 3,810 | | — | | 9,800 | |
| Client intermediation | 696 | | 325 | | 371 | | 58 | | — | | — | | 13 | | 71 | |
| Investment funds | 492 | | 82 | | 410 | | 5 | | 5 | | 20 | | — | | 30 | |
| Other | — | | — | | — | | — | | — | | — | | — | | — | |
| Total | $ | 488,417 | | $ | 56,726 | | $ | 431,691 | | $ | 46,604 | | $ | 4,307 | | $ | 16,653 | | $ | 62 | | $ | 67,626 | |
| | | As of December 31, 2021 | | As of September 30, 2023 |
| | | Maximum exposure to loss in significant unconsolidated VIEs(1) | | | Maximum exposure to loss in significant unconsolidated VIEs(1) |
| | Funded exposures(2) | Unfunded exposures | | | Funded exposures(2) | Unfunded exposures | |
| In millions of dollars | In millions of dollars | Total
involvement
with SPE
assets | Consolidated
VIE/SPE assets | Significant unconsolidated VIE assets(3) | Debt
investments | Equity
investments | Funding
commitments | Guarantees
and
derivatives | Total | In millions of dollars | Total
involvement
with SPE
assets | Consolidated
VIE/SPE assets | Significant unconsolidated VIE assets(3) | Debt
investments | Equity
investments | Funding
commitments | Guarantees
and
derivatives | Total |
| Credit card securitizations | Credit card securitizations | $ | 31,518 | | $ | 31,518 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | Credit card securitizations | $ | 31,203 | | $ | 31,203 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
Mortgage securitizations(4) | Mortgage securitizations(4) | | | | | | | | | Mortgage securitizations(4) | | | | | | | | |
| U.S. agency-sponsored | U.S. agency-sponsored | 113,641 | | — | | 113,641 | | 1,582 | | — | | — | | 43 | | 1,625 | | U.S. agency-sponsored | 125,485 | | — | | 125,485 | | 2,149 | | — | | — | | 139 | | 2,288 | |
| Non-agency-sponsored | Non-agency-sponsored | 60,851 | | 632 | | 60,219 | | 2,479 | | — | | 5 | | — | | 2,484 | | Non-agency-sponsored | 64,111 | | — | | 64,111 | | 3,133 | | — | | 130 | | — | | 3,263 | |
| Citi-administered asset-backed commercial paper conduits | Citi-administered asset-backed commercial paper conduits | 14,018 | | 14,018 | | — | | — | | — | | — | | — | | — | | Citi-administered asset-backed commercial paper conduits | 20,852 | | 20,852 | | — | | — | | — | | — | | — | | — | |
| Collateralized loan obligations (CLOs) | Collateralized loan obligations (CLOs) | 8,302 | | — | | 8,302 | | 2,636 | | — | | — | | — | | 2,636 | | Collateralized loan obligations (CLOs) | 5,767 | | — | | 5,767 | | 2,455 | | — | | — | | — | | 2,455 | |
Asset-based financing(5) | Asset-based financing(5) | 246,632 | | 11,085 | | 235,547 | | 32,242 | | 1,139 | | 12,189 | | — | | 45,570 | | Asset-based financing(5) | 190,782 | | 10,652 | | 180,130 | | 41,613 | | 927 | | 12,775 | | — | | 55,315 | |
| Municipal securities tender option bond trusts (TOBs) | Municipal securities tender option bond trusts (TOBs) | 3,251 | | 905 | | 2,346 | | 2 | | — | | 1,498 | | — | | 1,500 | | Municipal securities tender option bond trusts (TOBs) | 1,410 | | 723 | | 687 | | 5 | | — | | 519 | | — | | 524 | |
| Municipal investments | Municipal investments | 20,597 | | 3 | | 20,594 | | 2,512 | | 3,617 | | 3,562 | | — | | 9,691 | | Municipal investments | 21,657 | | 3 | | 21,654 | | 2,356 | | 2,884 | | 2,934 | | — | | 8,174 | |
| Client intermediation | Client intermediation | 904 | | 297 | | 607 | | 75 | | — | | — | | 224 | | 299 | | Client intermediation | 496 | | 106 | | 390 | | 75 | | — | | — | | — | | 75 | |
| Investment funds | Investment funds | 498 | | 179 | | 319 | | — | | — | | 12 | | 1 | | 13 | | Investment funds | 504 | | 70 | | 434 | | 5 | | 8 | | 90 | | — | | 103 | |
| Other | — | | — | | — | | — | | — | | — | | — | | — | | |
| | Total | Total | $ | 500,212 | | $ | 58,637 | | $ | 441,575 | | $ | 41,528 | | $ | 4,756 | | $ | 17,266 | | $ | 268 | | $ | 63,818 | | Total | $ | 462,267 | | $ | 63,609 | | $ | 398,658 | | $ | 51,791 | | $ | 3,819 | | $ | 16,448 | | $ | 139 | | $ | 72,197 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| As of December 31, 2022 |
| | | | Maximum exposure to loss in significant unconsolidated VIEs(1) |
| | | | Funded exposures(2) | Unfunded exposures | |
| In millions of dollars | Total
involvement
with SPE
assets | Consolidated
VIE/SPE assets | Significant unconsolidated VIE assets(3) | Debt
investments | Equity
investments | Funding
commitments | Guarantees
and
derivatives | Total |
| Credit card securitizations | $ | 32,021 | | $ | 32,021 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
Mortgage securitizations(4) | | | | | | | | |
| U.S. agency-sponsored | 117,358 | | — | | 117,358 | | 2,052 | | — | | — | | 48 | | 2,100 | |
| Non-agency-sponsored | 67,704 | | — | | 67,704 | | 3,294 | | — | | — | | — | | 3,294 | |
| Citi-administered asset-backed commercial paper conduits | 19,621 | | 19,621 | | — | | — | | — | | — | | — | | — | |
| Collateralized loan obligations (CLOs) | 7,600 | | — | | 7,600 | | 2,601 | | — | | — | | — | | 2,601 | |
Asset-based financing(5) | 242,348 | | 9,672 | | 232,676 | | 40,121 | | 1,022 | | 10,726 | | — | | 51,869 | |
| Municipal securities tender option bond trusts (TOBs) | 2,155 | | 672 | | 1,483 | | 2 | | — | | 1,108 | | — | | 1,110 | |
| Municipal investments | 22,167 | | 3 | | 22,164 | | 2,731 | | 3,143 | | 3,420 | | — | | 9,294 | |
| Client intermediation | 482 | | 121 | | 361 | | 58 | | — | | — | | 13 | | 71 | |
| Investment funds | 534 | | 91 | | 443 | | 2 | | 5 | | 68 | | — | | 75 | |
| | | | | | | | |
| Total | $ | 511,990 | | $ | 62,201 | | $ | 449,789 | | $ | 50,861 | | $ | 4,170 | | $ | 15,322 | | $ | 61 | | $ | 70,414 | |
(1) The definition of maximum exposure to loss is included in the text that follows this table.
(2) Included on Citigroup’s September 30, 20222023 and December 31, 20212022 Consolidated Balance Sheet.
(3) A significant unconsolidated VIE is an entity in which the Company has any variable interest or continuing involvement considered to be significant, regardless of the likelihood of loss.
(4) Citigroup mortgage securitizations also include agency and non-agency (private label) re-securitization activities. These SPEs are not consolidated. See “Re-securitizations” below for further discussion.
(5) Included within this line are loans to third-party-sponsored private equity funds, which represent $75$6 billion and $100$69 billion in unconsolidated VIE assets and $500$283 million and $497$498 million in maximum exposure to loss as of September 30, 20222023 and December 31, 2021,2022, respectively.
The previous tables do not include:
•certain venture capital investments made by some of the Company’s private equity subsidiaries, as the Company accounts for these investments in accordance with the Investment Company Audit Guide (codified in ASC 946);
•certain investment funds for which the Company provides investment management services and personal estate trusts for which the Company provides administrative, trustee and/or investment management services;
•certain third-party-sponsored private equity funds to which the Company provides secured credit facilities. The Company has no decision-making power and does not consolidate these funds, some of which may meet the definition of a VIE. The Company’s maximum exposure to loss is generally limited to a loan or lending-related commitment. As of September 30, 20222023 and December 31, 2021,2022, the Company’s maximum exposure to loss related to these transactions was $43.4$13.8 billion and $55.6$33.6 billion, respectively (for more information on these positions, see Note 13 and Note 2627 to the Consolidated Financial Statements in Citigroup’s 2021Citi’s 2022 Form 10-K);
•certain VIEs structured by third parties in which the Company holds securities in inventory, as these investments are made on arm’s-length terms;
•certain positions in mortgage- and asset-backed securities held by the Company, which are classified as Trading account assets or Investments, in which the Company has no other involvement with the related securitization entity deemed to be significant (see Notes 12 and 2021 for more information on these positions);
•certain representations and warranties exposures in Citigroup residential mortgage securitizations, in which the original mortgage loan balances are no longer outstanding; and
•VIEs such as preferred securities trusts used in connection with the Company’s funding activities. The Company does not have a variable interest in these trusts.
The asset balances for consolidated VIEs represent the carrying amounts of the assets consolidated by the Company. The carrying amount may represent the amortized cost or the current fair value of the assets depending on the classification of the asset (e.g., loan or security) and the associated accounting model ascribed to that classification.
The asset balances for unconsolidated VIEs in which the Company has significant involvement represent the most current information available to the Company. In most cases, the asset balances represent an amortized cost basis without regard to impairments, unless fair value information is readily available to the Company.
The maximum funded exposure represents the balance sheet carrying amount of the Company’s investment in the VIE. It reflects the initial amount of cash invested in the VIE, adjusted for any accrued interest and cash principal payments received. The carrying amount may also be adjusted for increases or declines in fair value or any impairment in value recognized in earnings. The maximum exposure of unfunded positions represents the remaining undrawn committed amount, including liquidity and credit facilities provided by the Company or the notional amount of a derivative instrument considered to be a variable interest. In certain transactions, the Company has entered into derivative instruments or other arrangements that are not considered variable interests in the VIE (e.g., interest rate swaps, cross-currency swaps or where the Company is the purchaser of credit protection under a credit default swap or total return swap where the Company pays the total return on certain assets to the SPE). Receivables under such arrangements are not included in the maximum exposure amounts.
The following tables present certain assets and liabilities of consolidated variable interest entities (VIEs), which are included on Citi’s Consolidated Balance Sheet. The assets in the table below include those assets that can only be used to settle obligations of consolidated VIEs presented on the following page, and are in excess of those obligations. In addition, the assets in the table below include third-party assets of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities in the table below include third-party liabilities of consolidated VIEs only and exclude intercompany balances that eliminate in consolidation. The liabilities also exclude amounts where creditors or beneficial interest holders have recourse to the general credit of Citigroup.
| | | September 30, | | | September 30, | |
| | 2022 | December 31, | | 2023 | December 31, |
| In millions of dollars | In millions of dollars | (Unaudited) | 2021 | In millions of dollars | (Unaudited) | 2022 |
| Assets of consolidated VIEs to be used to settle obligations of consolidated VIEs | Assets of consolidated VIEs to be used to settle obligations of consolidated VIEs | | Assets of consolidated VIEs to be used to settle obligations of consolidated VIEs | |
| Cash and due from banks | Cash and due from banks | $ | 63 | | $ | 260 | | Cash and due from banks | $ | 33 | | $ | 61 | |
| Trading account assets | Trading account assets | 8,274 | | 10,038 | | Trading account assets | 9,990 | | 9,153 | |
| Investments | Investments | 616 | | 844 | | Investments | 651 | | 594 | |
| Loans, net of unearned income | Loans, net of unearned income | | | Loans, net of unearned income | | |
| Consumer | Consumer | 34,333 | | 34,677 | | Consumer | 34,349 | | 35,026 | |
| Corporate | Corporate | 15,815 | | 14,312 | | Corporate | 20,975 | | 19,782 | |
| Loans, net of unearned income | Loans, net of unearned income | $ | 50,148 | | $ | 48,989 | | Loans, net of unearned income | $ | 55,324 | | $ | 54,808 | |
| Allowance for credit losses on loans (ACLL) | Allowance for credit losses on loans (ACLL) | (2,446) | | (2,668) | | Allowance for credit losses on loans (ACLL) | (2,527) | | (2,520) | |
| Total loans, net | Total loans, net | $ | 47,702 | | $ | 46,321 | | Total loans, net | $ | 52,797 | | $ | 52,288 | |
| Other assets | Other assets | 71 | | 1,174 | | Other assets | 138 | | 105 | |
| Total assets of consolidated VIEs to be used to settle obligations of consolidated VIEs | Total assets of consolidated VIEs to be used to settle obligations of consolidated VIEs | $ | 56,726 | | $ | 58,637 | | Total assets of consolidated VIEs to be used to settle obligations of consolidated VIEs | $ | 63,609 | | $ | 62,201 | |
| | | September 30, | | | September 30, | |
| | 2022 | December 31, | | 2023 | December 31, |
| In millions of dollars | In millions of dollars | (Unaudited) | 2021 | In millions of dollars | (Unaudited) | 2022 |
Liabilities of consolidated VIEs for which creditors or beneficial interest holders
do not have recourse to the general credit of Citigroup | Liabilities of consolidated VIEs for which creditors or beneficial interest holders
do not have recourse to the general credit of Citigroup | | Liabilities of consolidated VIEs for which creditors or beneficial interest holders
do not have recourse to the general credit of Citigroup | |
| Short-term borrowings | Short-term borrowings | $ | 10,073 | | $ | 8,376 | | Short-term borrowings | $ | 9,657 | | $ | 9,807 | |
| Long-term debt | Long-term debt | 10,438 | | 12,579 | | Long-term debt | 7,340 | | 10,324 | |
| Other liabilities | Other liabilities | 266 | | 694 | | Other liabilities | 835 | | 622 | |
Total liabilities of consolidated VIEs for which creditors or beneficial interest
holders do not have recourse to the general credit of Citigroup | Total liabilities of consolidated VIEs for which creditors or beneficial interest
holders do not have recourse to the general credit of Citigroup | $ | 20,777 | | $ | 21,649 | | Total liabilities of consolidated VIEs for which creditors or beneficial interest holders
do not have recourse to the general credit of Citigroup | $ | 17,832 | | $ | 20,753 | |
Funding Commitments for Significant Unconsolidated VIEs—Liquidity Facilities and Loan Commitments
The following table presents the notional amount of liquidity facilities and loan commitments that are classified as funding commitments in the VIE tables above:
| | | September 30, 2022 | December 31, 2021 | | September 30, 2023 | December 31, 2022 |
| In millions of dollars | In millions of dollars | Liquidity
facilities | Loan/equity
commitments | Liquidity
facilities | Loan/equity
commitments | In millions of dollars | Liquidity
facilities | Loan/equity
commitments | Liquidity
facilities | Loan/equity
commitments |
| Non-agency-sponsored mortgage securitizations | Non-agency-sponsored mortgage securitizations | $ | — | | $ | 7 | | $ | — | | $ | 5 | | Non-agency-sponsored mortgage securitizations | $ | — | | $ | 130 | | $ | — | | $ | — | |
| Asset-based financing | Asset-based financing | — | | 11,421 | | — | | 12,189 | | Asset-based financing | — | | 12,775 | | — | | 10,726 | |
| Municipal securities tender option bond trusts (TOBs) | Municipal securities tender option bond trusts (TOBs) | 1,395 | | — | | 1,498 | | — | | Municipal securities tender option bond trusts (TOBs) | 519 | | — | | 1,108 | | — | |
| Municipal investments | Municipal investments | — | | 3,810 | | — | | 3,562 | | Municipal investments | — | | 2,934 | | — | | 3,420 | |
| Investment funds | Investment funds | — | | 20 | | — | | 12 | | Investment funds | — | | 90 | | — | | 68 | |
| Other | Other | — | | — | | — | | — | | Other | — | | — | | — | | — | |
| Total funding commitments | Total funding commitments | $ | 1,395 | | $ | 15,258 | | $ | 1,498 | | $ | 15,768 | | Total funding commitments | $ | 519 | | $ | 15,929 | | $ | 1,108 | | $ | 14,214 | |
Significant Interests in Unconsolidated VIEs—Balance Sheet Classification
The following table presents the carrying amounts and classification of significant variable interests in unconsolidated VIEs:
| | In billions of dollars | In billions of dollars | September 30, 2022 | December 31, 2021 | In billions of dollars | September 30, 2023 | December 31, 2022 |
| Cash | Cash | $ | — | | $ | — | | Cash | $ | — | | $ | — | |
| Trading account assets | Trading account assets | 1.6 | | 1.4 | | Trading account assets | 1.6 | | 1.6 | |
| Investments | Investments | 8.7 | | 8.8 | | Investments | 8.1 | | 8.6 | |
| Total loans, net of allowance | Total loans, net of allowance | 40.0 | | 35.4 | | Total loans, net of allowance | 45.3 | | 44.2 | |
| Other | Other | 0.6 | | 0.8 | | Other | 0.6 | | 0.6 | |
| Total assets | Total assets | $ | 50.9 | | $ | 46.4 | | Total assets | $ | 55.6 | | $ | 55.0 | |
Credit Card Securitizations
Substantially all of theThe Company’s primary credit card securitization activity is through two trusts—Citibank Credit Card Master Trust (Master Trust) and Citibank Omni Trust (Omni Trust), with the substantial majority through the Master Trust. These trusts are consolidated entities. The following table reflects amounts relatedentities given Citi’s continuing involvement. For additional information, see Note 22 to the Company’s securitized credit card receivables:
| | | | | | | | |
| In billions of dollars | September 30, 2022 | December 31, 2021 |
| Ownership interests in principal amount of trust credit card receivables |
| Sold to investors via trust-issued securities | $ | 8.6 | | $ | 9.7 | |
| Retained by Citigroup as trust-issued securities | 6.5 | | 7.2 | |
| Retained by Citigroup via non-certificated interests | 17.8 | | 16.1 | |
| Total | $ | 32.9 | | $ | 33.0 | |
Consolidated Financial Statements in Citi’s 2022 Form 10-K. There were no material cash flows arising from either proceeds from new securitizations or paydowns of maturing notes during the nine months ended September 30, 2023 and 2022.
The following table summarizes selected cash flow information related to Citigroup’s credit card securitizations:
| | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| In billions of dollars | 2022 | 2021 | 2022 | 2021 |
| Proceeds from new securitizations | $ | — | | $ | — | | $ | — | | $ | — | |
| Pay down of maturing notes | (1.1) | | — | | (1.1) | | (4.7) | |
| | | | |
Master Trust Liabilities (at Par Value)
The weighted average maturity of the third-party term notes issued by the Master Trust was 3.3 years as of September 30, 2022 and 3.6 years as of December 31, 2021.
| | | | | | | | |
| In billions of dollars | Sept. 30, 2022 | Dec. 31, 2021 |
| Term notes issued to third parties | $ | 7.3 | | $ | 8.4 | |
| Term notes retained by Citigroup affiliates | 1.7 | | 2.2 | |
| Total Master Trust liabilities | $ | 9.0 | | $ | 10.6 | |
Omni Trust Liabilities (at Par Value)
The weighted average maturity of the third-party term notes issued by the Omni Trust was 0.7 years as of September 30, 2022 and 1.6 years as of December 31, 2021.
| | | | | | | | |
| In billions of dollars | Sept. 30, 2022 | Dec. 31, 2021 |
| Term notes issued to third parties | $ | 1.3 | | $ | 1.3 | |
| Term notes retained by Citigroup affiliates | 4.8 | | 5.0 | |
| Total Omni Trust liabilities | $ | 6.1 | | $ | 6.3 | |
The following tables summarize selected cash flow information and retained interests related to Citigroup mortgage securitizations:
| | | Three Months Ended September 30, | | Three Months Ended September 30, |
| | 2022 | 2021 | | 2023 | 2022 |
| In billions of dollars | In billions of dollars | U.S. agency-
sponsored
mortgages | Non-agency-
sponsored
mortgages | U.S. agency-
sponsored
mortgages | Non-agency-
sponsored
mortgages | In billions of dollars | U.S. agency-
sponsored
mortgages | Non-agency-
sponsored
mortgages | U.S. agency-
sponsored
mortgages | Non-agency-
sponsored
mortgages |
| Principal securitized | Principal securitized | $ | 1.4 | | $ | 1.1 | | $ | 0.5 | | $ | 1.7 | | Principal securitized | $ | 1.7 | | $ | 0.6 | | $ | 1.4 | | $ | 1.1 | |
| Proceeds from new securitizations | Proceeds from new securitizations | 1.4 | | 1.0 | | 0.5 | | 1.9 | | Proceeds from new securitizations | 1.7 | | 0.5 | | 1.4 | | 1.0 | |
| Contractual servicing fees received | Contractual servicing fees received | — | | — | | — | | — | | Contractual servicing fees received | — | | — | | — | | — | |
| Cash flows received on retained interests and other new cash flows | — | | — | | — | | — | | |
| Cash flows received on retained interests and other net cash flows | | Cash flows received on retained interests and other net cash flows | — | | 0.1 | | — | | — | |
| Purchases of previously transferred financial assets | Purchases of previously transferred financial assets | — | | — | | — | | — | | Purchases of previously transferred financial assets | — | | — | | — | | — | |
| | | Nine Months Ended September 30, | | Nine Months Ended September 30, |
| | 2022 | 2021 | | 2023 | 2022 |
| In billions of dollars | In billions of dollars | U.S. agency-
sponsored
mortgages | Non-agency-
sponsored
mortgages | U.S. agency-
sponsored
mortgages | Non-agency-
sponsored
mortgages | In billions of dollars | U.S. agency-
sponsored
mortgages | Non-agency-
sponsored
mortgages | U.S. agency-
sponsored
mortgages | Non-agency-
sponsored
mortgages |
| Principal securitized | Principal securitized | $ | 5.4 | | $ | 11.3 | | $ | 5.4 | | $ | 19.8 | | Principal securitized | $ | 4.1 | | $ | 2.9 | | $ | 5.4 | | $ | 11.3 | |
| Proceeds from new securitizations | Proceeds from new securitizations | 5.2 | | 11.0 | | 5.6 | | 19.7 | | Proceeds from new securitizations | 4.1 | | 2.6 | | 5.2 | | 11.0 | |
| Contractual servicing fees received | Contractual servicing fees received | 0.1 | | — | | 0.1 | | — | | Contractual servicing fees received | 0.1 | | — | | 0.1 | | — | |
| Cash flows received on retained interests and other new cash flows | — | | 0.1 | | — | | — | | |
| Cash flows received on retained interests and other net cash flows | | Cash flows received on retained interests and other net cash flows | — | | 0.1 | | — | | 0.1 | |
| Purchases of previously transferred financial assets | Purchases of previously transferred financial assets | 0.1 | | — | | 0.1 | | — | | Purchases of previously transferred financial assets | — | | — | | 0.1 | | — | |
Note: Excludes broker-dealer re-securitization transactions.
Gains recognized on the securitization of U.S. agency-sponsored mortgages were less than $1 million each for the three and nine months ended September 30, 2023, respectively. Gains recognized on the securitization of non-agency-sponsored mortgages were $50.4 million and $64.1 million for the three and nine months ended September 30, 2023, respectively.
Gains recognized on the securitization of U.S. agency-sponsored mortgages were $1 million and $1 million for the three and nine months ended September 30, 2022, respectively. Gains recognized on the securitization of non-agency-sponsored mortgages were $21 million and $94 million for the three and nine months ended September 30, 2022, respectively.
Gains recognized on the securitization of U.S. agency-sponsored mortgages were $2 million and $3 million for the three and nine months ended September 30, 2021, respectively. Gains recognized on the securitization of non-agency-sponsored mortgages were $121 million and $423 million for the three and nine months ended September 30, 2021, respectively.
| | | September 30, 2022 | December 31, 2021 | | September 30, 2023 | December 31, 2022 |
| | | Non-agency-sponsored mortgages(1) | | Non-agency-sponsored mortgages(1) | | | Non-agency-sponsored mortgages(1) | | Non-agency-sponsored mortgages(1) |
| In millions of dollars | In millions of dollars | U.S. agency-
sponsored mortgages | Senior
interests(2) | Subordinated
interests | U.S. agency-
sponsored mortgages | Senior
interests | Subordinated
interests | In millions of dollars | U.S. agency-
sponsored mortgages | Senior
interests(2) | Subordinated
interests | U.S. agency-
sponsored mortgages | Senior
interests | Subordinated
interests |
Carrying value of retained interests(3) | Carrying value of retained interests(3) | $ | 647 | | $ | 1,069 | | $ | 945 | | $ | 374 | | $ | 1,452 | | $ | 955 | | Carrying value of retained interests(3) | $ | 735 | | $ | 953 | | $ | 951 | | $ | 659 | | $ | 1,119 | | $ | 943 | |
(1) Disclosure of non-agency-sponsored mortgages as senior and subordinated interests is indicative of the interests’ position in the capital structure of the securitization.
(2) Senior interests in non-agency-sponsored mortgages include $35$1.6 million related to personal loan securitizations at September 30, 2022.2023.
(3) Retained interests consist of Level 2 and Level 3 assets depending on the observability of significant inputs. See Note 2022 for more information about fair value measurements.
Key assumptions used in measuring the fair value of retained interests at the date of sale or securitization of mortgage receivables were as follows:
| | | | | | | | | | | |
| Three Months Ended September 30, 2022 |
| | Non-agency-sponsored mortgages(1) |
| U.S. agency-
sponsored mortgages | Senior
interests | Subordinated
interests |
| Weighted average discount rate | 9.6 | % | NM | 5.7 | % |
| Weighted average constant prepayment rate | 2.6 | % | NM | 9.1 | % |
Weighted average anticipated net credit losses(2) | NM | NM | 0.7 | % |
| Weighted average life | 9.4 years | NM | 5.3 years |
| | | |
| Nine Months Ended September 30, 2022 |
| | Non-agency-sponsored mortgages(1) |
| U.S. agency-
sponsored mortgages | Senior
interests | Subordinated
interests |
| Weighted average discount rate | 8.2 | % | 3.4 | % | 4.2 | % |
| Weighted average constant prepayment rate | 2.6 | % | 5.9 | % | 11.7 | % |
Weighted average anticipated net credit losses(2) | NM | 2.9 | % | 0.5 | % |
| Weighted average life | 9.2 years | 6.5 years | 5.7 years |
| | | |
| | | |
| Three Months Ended September 30, 2021 |
| | Non-agency-sponsored mortgages(1) |
| U.S. agency-
sponsored mortgages | Senior
interests | Subordinated
interests |
| Weighted average discount rate | 8.6 | % | 2.2 | % | 2.4 | % |
| Weighted average constant prepayment rate | 5.9 | % | 4.3 | % | 13.3 | % |
Weighted average anticipated net credit losses(2) | NM | 0.8 | % | 0.2 | % |
| Weighted average life | 7.4 years | 3.2 years | 4.9 years |
| | | |
| Nine Months Ended September 30, 2021 |
| | Non-agency-sponsored mortgages(1) |
| U.S. agency-
sponsored mortgages | Senior
interests | Subordinated
interests |
| Weighted average discount rate | 8.8 | % | 2.2 | % | 2.8 | % |
| Weighted average constant prepayment rate | 5.3 | % | 6.3 | % | 10.6 | % |
Weighted average anticipated net credit losses(2) | NM | 1.4 | % | 1.0 | % |
| Weighted average life | 7.6 years | 3.4 years | 5.4 years |
(1) Disclosure of non-agency-sponsored mortgages as senior and subordinated interests is indicative of the interests’ position in the capital structure of the securitization.
(2) Anticipated net credit losses represent estimated loss severity associated with defaulted mortgage loans underlying the mortgage securitizations disclosed above. Anticipated net credit losses, in this instance, do not represent total credit losses incurred to date, nor do they represent credit losses expected on retained interests in mortgage securitizations.
NM Anticipated net credit losses are not meaningful due to U.S. agency guarantees.
The interests retained by the Company range from highly rated and/or senior in the capital structure to unrated and/or residual interests. Key assumptions used in measuring the fair value of retained interests in securitizations of mortgage receivables at period end were as follows:
| | | | | | | | | | | |
| September 30, 2022 |
| |
| | Non-agency-sponsored mortgages(1) |
| U.S. agency-
sponsored mortgages | Senior
interests | Subordinated
interests |
| Weighted average discount rate | 5.9 | % | 1.5 | % | NM |
| Weighted average constant prepayment rate | 4.8 | % | 15.0 | % | NM |
Weighted average anticipated net credit losses(2) | NM | 1.0 | % | NM |
| Weighted average life | 8.2 years | 1.5 years | NM |
| | | | | | | | | | | |
| December 31, 2021 |
| |
| | Non-agency-sponsored mortgages(1) |
| U.S. agency-
sponsored mortgages | Senior
interests | Subordinated
interests |
| Weighted average discount rate | 3.7 | % | 16.2 | % | 4.0 | % |
| Weighted average constant prepayment rate | 14.5 | % | 6.8 | % | 9.0 | % |
Weighted average anticipated net credit losses(2) | NM | 1.0 | % | 2.0 | % |
| Weighted average life | 5.1 years | 8.8 years | 18.0 years |
(1) Disclosure of non-agency-sponsored mortgages as senior and subordinated interests is indicative of the interests’ position in the capital structure of the securitization.
(2) Anticipated net credit losses represent estimated loss severity associated with defaulted mortgage loans underlying the mortgage securitizations disclosed above. Anticipated net credit losses, in this instance, do not represent total credit losses incurred to date, nor do they represent credit losses expected on retained interests in mortgage securitizations.
NM Anticipated net credit losses are not meaningful due to U.S. agency guarantees.
The sensitivity of the fair value to adverse changes of 10% and 20% in each of the key assumptions is presented in the tables below. The negative effect of each change is calculated independently, holding all other assumptions constant. Because the key assumptions may not be independent, the net effect of simultaneous adverse changes in the key assumptions may be less than the sum of the individual effects shown below.
| | | | | | | | | | | |
| September 30, 2022 |
| | Non-agency-sponsored mortgages |
In millions of dollars | U.S. agency-
sponsored mortgages
| Senior
interests
| Subordinated
interests
|
Discount rate | | | |
Adverse change of 10% | $ | (21) | | $ | — | | $ | — | |
Adverse change of 20% | (40) | | — | | — | |
Constant prepayment rate | | | |
Adverse change of 10% | (12) | | — | | — | |
Adverse change of 20% | (24) | | — | | — | |
Anticipated net credit losses | | | |
Adverse change of 10% | NM | — | | — | |
Adverse change of 20% | NM | — | | — | |
| | | | | | | | | | | |
| December 31, 2021 |
| | Non-agency-sponsored mortgages |
| In millions of dollars | U.S. agency-
sponsored mortgages | Senior
interests | Subordinated
interests |
| Discount rate | | | |
| Adverse change of 10% | $ | (6) | | $ | (1) | | $ | — | |
| Adverse change of 20% | (11) | | (1) | | — | |
| Constant prepayment rate | | | |
| Adverse change of 10% | (19) | | — | | — | |
| Adverse change of 20% | (37) | | — | | — | |
| Anticipated net credit losses | | | |
| Adverse change of 10% | NM | — | | — | |
| Adverse change of 20% | NM | — | | — | |
NM Anticipated net credit losses are not meaningful due to U.S. agency guarantees.
The following table includes information about loan delinquencies and liquidation losses for assets held in non-consolidated, non-agency-sponsored securitization entities:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Liquidation losses | | |
| Securitized assets | 90 days past due | Three Months Ended September 30, | Nine Months Ended September 30, |
| In billions of dollars, except liquidation losses in millions | Sept. 30, 2022 | Dec. 31, 2021 | Sept. 30, 2022 | Dec. 31, 2021 | 2022 | 2021 | 2022 | 2021 |
| Securitized assets | | | | | | | | |
Residential mortgages(1) | $ | 29.3 | | $ | 29.2 | | $ | 0.5 | | $ | 0.4 | | $ | 1 | | $ | 2 | | $ | 3 | | $ | 8 | |
| Commercial and other | 28.8 | | 26.2 | | — | | — | | — | | — | | — | | — | |
| Total | $ | 58.1 | | $ | 55.4 | | $ | 0.5 | | $ | 0.4 | | $ | 1 | | $ | 2 | | $ | 3 | | $ | 8 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Liquidation (gains) losses |
| Securitized assets | 90 days past due | Three Months Ended September 30, | Nine Months Ended September 30, |
| In billions of dollars, except liquidation losses in millions | Sept. 30, 2023 | Dec. 31, 2022 | Sept. 30, 2023 | Dec. 31, 2022 | 2023 | 2022 | 2023 | 2022 |
| Securitized assets | | | | | | | | |
Residential mortgages(1) | $ | 28.1 | | $ | 30.8 | | $ | 0.4 | | $ | 0.5 | | $ | (0.2) | | $ | 1 | | $ | 4.4 | | $ | 3 | |
| Commercial and other | 29.2 | | 28.8 | | — | | — | | — | | — | | — | | — | |
| Total | $ | 57.3 | | $ | 59.6 | | $ | 0.4 | | $ | 0.5 | | $ | (0.2) | | $ | 1 | | $ | 4.4 | | $ | 3 | |
(1) Securitized assets include $0.2$0.1 billion of personal loan securitizations as of September 30, 2022.2023.
Consumer Loan Securitizations
Beginning in the third quarter of 2023, Citi relaunched a program securitizing other consumer loans into asset-backed securities. The principal securitized and the proceeds from new securitizations at September 30, 2023 were $0.5 billion and $0.3 billion, respectively. The gain recognized on the securitization of consumer loans was $3.7 million for the three months ended September 30, 2023.
Mortgage Servicing Rights (MSRs)
The fair value of Citi’s capitalized MSRs was $647$729 million and $409$647 million at September 30, 20222023 and 2021,2022, respectively. The MSRs correspond to principal loan balances of $48$52 billion and $48 billion as of September 30, 20222023 and 2021,2022, respectively. The following table summarizes the changes in capitalized MSRs:
| | | Three Months Ended September 30, | Nine Months Ended
September 30, | | Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | In millions of dollars | 2022 | 2021 | 2022 | 2021 | In millions of dollars | 2023 | 2022 | 2023 | 2022 |
| Balance, beginning of period | Balance, beginning of period | $ | 600 | | $ | 419 | | $ | 404 | | $ | 336 | | Balance, beginning of period | $ | 681 | | $ | 600 | | $ | 665 | | $ | 404 | |
| Originations | Originations | 25 | | 8 | | 94 | | 76 | | Originations | 23 | | 25 | | 54 | | 94 | |
| Changes in fair value of MSRs due to changes in inputs and assumptions | Changes in fair value of MSRs due to changes in inputs and assumptions | 37 | | (3) | | 195 | | 49 | | Changes in fair value of MSRs due to changes in inputs and assumptions | 42 | | 37 | | 61 | | 195 | |
Other changes(1) | Other changes(1) | (15) | | (15) | | (46) | | (52) | | Other changes(1) | (17) | | (15) | | (51) | | (46) | |
| Sales of MSRs | — | | — | | — | | — | | |
| | Balance, as of September 30 | Balance, as of September 30 | $ | 647 | | $ | 409 | | $ | 647 | | $ | 409 | | Balance, as of September 30 | $ | 729 | | $ | 647 | | $ | 729 | | $ | 647 | |
(1) Represents changes due to customer payments and passage of time.
The fair value of the MSRs is primarily affected by changes in prepayments of mortgages that result from shifts in mortgage interest rates. Specifically, higher interest rates tend to lead to declining prepayments, which causes the fair value of the MSRs to increase. In managing this risk, Citigroup economically hedges a significant portion of the value of its MSRs through the use of interest rate derivative contracts, forward purchase and sale commitments of mortgage-backed securities and purchased securities, all classified as Trading account assets.
The Company receives fees during the course of servicing previously securitized mortgages. The amounts of these fees were as follows:
| | | Three Months Ended September 30, | Nine Months Ended September 30, | | Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | In millions of dollars | 2022 | 2021 | 2022 | 2021 | In millions of dollars | 2023 | 2022 | 2023 | 2022 |
| Servicing fees | Servicing fees | $ | 31 | | $ | 32 | | $ | 90 | | $ | 100 | | Servicing fees | $ | 32 | | $ | 31 | | $ | 97 | | $ | 90 | |
| Late fees | Late fees | 1 | | 1 | | 3 | | 2 | Late fees | 1 | | 1 | | 3 | | 3 |
| Ancillary fees | — | | — | | — | | — | |
| | Total MSR fees | Total MSR fees | $ | 32 | | $ | 33 | | $ | 93 | | $ | 102 | | Total MSR fees | $ | 33 | | $ | 32 | | $ | 100 | | $ | 93 | |
In the Consolidated Statement of Income these fees are primarily classified as Commissions and fees, and changes in MSR fair values are classified as Other revenue.
Re-securitizations
The Company engages in re-securitization transactions in which debt securities are transferred to a VIE in exchange for new beneficial interests. Citi did not transfer non-agency (private label) securities to re-securitization entities during the three months ended September 30, 20222023 and 2021.2022. These securities are backed by either residential or commercial mortgages and are often structured on behalf of clients.
As of September 30, 20222023 and December 31, 2021,2022, Citi held no retained interests in private label re-securitization transactions structured by Citi.
The Company also re-securitizes U.S. government-agency-guaranteed mortgage-backed (agency) securities. During the three and nine months ended September 30, 2022,2023, Citi transferred agency securities with a fair value of approximately $5.3$4.3 billion and $20.3$12.8 billion, respectively, to re-securitization entities, compared to approximately $12.6$5.3 billion and $37.1$20.3 billion for the three and nine months ended September 30, 2021,2022, respectively.
As of September 30, 2022,2023, the fair value of Citi-retained interests in agency re-securitization transactions structured by Citi totaled approximately $1.4 billion (including $747$552 million related to re-securitization transactions executed in 2022)2023), an increase from $1.2compared to $1.4 billion as of December 31, 20212022 (including $641$801 million related to re-securitization transactions executed in 2021)2022), which is recorded in Trading account assets. The original fair values of agency re-securitization transactions in which Citi holds a retained interest as of September 30, 20222023 and December 31, 20212022 were approximately $76.0$85.9 billion and $78.4$79.4 billion, respectively.
As of September 30, 20222023 and December 31, 2021,2022, the Company did not consolidate any private label or agency re-securitization entities.
Citi-Administered Asset-Backed Commercial Paper Conduits
At September 30, 20222023 and December 31, 2021,2022, the commercial paper conduits administered by Citi had approximately $15.6$20.9 billion and $14.0$19.6 billion of purchased assets outstanding, respectively, and had incremental fundingunfunded commitments with clients of approximately $17.0$15.6 billion and $18.3$13.9 billion, respectively.
Substantially all of the funding of the conduits is in the form of short-term commercial paper. At September 30, 20222023 and December 31, 2021,2022, the weighted average remaining livesmaturities of the commercial paper issued by the conduits were approximately 6568 and 7064 days, respectively.
The primary credit enhancement provided to the conduit investors is in the form of transaction-specific credit enhancements described above.
Each asset purchased by the conduit is structured with transaction-specific credit enhancement, features provided by the third-party client seller, including over-collateralization, cash and excess spread collateral accounts, direct recourse or third-party guarantees. These credit enhancements areCredit enhancement is sized with the objective of approximating aan investment-grade credit rating, of A or above, based on Citi’s internal risk ratings. In addition to the transaction-specific credit enhancements,enhancement, the conduits other than the government-guaranteed loan conduit, have obtained letters of credit from the Company whichthat equal at least 8% to 10% of the conduit’s assets with a minimum of $200 million to $350 million. The letters of credit provided by the Company to the conduits total approximately $1.6$1.9 billion and $1.3$1.9 billion as of September 30, 20222023 and December 31, 2021,2022, respectively. The net result across multiseller conduits administered by the Company is that, in the event that defaulted assets exceed the transaction-specific credit enhancementsenhancement described above, any losses in each conduit are allocated first to the Company and then to the commercial paper investors.
At September 30, 20222023 and December 31, 2021,2022, the Company owned $4.6$9.9 billion and $4.9$8.6 billion, respectively, of the commercial paper issued by its administered conduits. The Company’s investments were not driven by market illiquidity and the Company is not obligated under any agreement to purchase the commercial paper issued by the conduits.
Collateralized Loan Obligations (CLOs)
There were no new securitizations during the three and nine months ended September 30, 2022 and 2021. The following table summarizes selected retained interests related to Citigroup CLOs:
| | | | | | | | |
| In millions of dollars | Sept. 30, 2022 | Dec. 31, 2021 |
| Carrying value of retained interests | $ | 681 | | $ | 921 | |
All of Citi’s retained interests were held-to-maturity securities as of September 30, 2022 and December 31, 2021.
Municipal Securities Tender Option Bond (TOB) Trusts
At September 30, 20222023 and December 31, 2021,2022, none of the municipal bonds owned by non-customer TOB trusts were subject to a credit guarantee provided by the Company.
At September 30, 20222023 and December 31, 2021,2022, liquidity agreements provided with respect to customer TOB trusts totaled $1.4$0.5 billion and $1.5$1.1 billion, respectively, of which $0.8$0.3 billion and $0.6$0.7 billion, respectively, were offset by reimbursement agreements. For the remaining exposure related to TOB transactions, where the residual owned by the customer was at least 25% of the bond value at the inception of the transaction, no reimbursement agreement was executed.
The Company also provides other liquidity agreements or letters of credit to customer-sponsored municipal investment funds, which are not variable interest entities, and municipality-related issuers that totaled $1.4$1.3 billion and $2.0$1.4 billion as of September 30, 20222023 and December 31, 2021,2022, respectively. These liquidity agreements and letters of credit are offset by reimbursement agreements with various term-out provisions.
Asset-Based Financing
The primary types of Citi’s asset-based financings, total assets of the unconsolidated VIEs with significant involvement and Citi’s maximum exposure to loss are shownpresented below. For Citi to realize the maximum loss, the VIE (borrower) would have to default with no recovery from the assets held by the VIE.
| | | | | | | | | | | | | | |
| September 30, 2022 | December 31, 2021 |
| In millions of dollars | Total
unconsolidated
VIE assets | Maximum
exposure to
unconsolidated VIEs | Total
unconsolidated
VIE assets | Maximum
exposure to
unconsolidated VIEs |
| Type | | | | |
| Commercial and other real estate | $ | 39,681 | | $ | 7,767 | | $ | 32,932 | | $ | 7,461 | |
| Corporate loans | 24,486 | | 14,870 | | 18,257 | | 12,581 | |
| Other (including investment funds, airlines and shipping) | 162,997 | | 26,422 | | 184,358 | | 25,528 | |
| Total | $ | 227,164 | | $ | 49,059 | | $ | 235,547 | | $ | 45,570 | |
| | | | | | | | | | | | | | |
| September 30, 2023 | December 31, 2022 |
| In millions of dollars | Total
unconsolidated
VIE assets | Maximum
exposure to
unconsolidated VIEs | Total
unconsolidated
VIE assets | Maximum
exposure to
unconsolidated VIEs |
| Type | | | | |
| Commercial and other real estate | $ | 42,651 | | $ | 9,250 | | $ | 43,236 | | $ | 8,806 | |
| Corporate loans | 21,846 | | 15,116 | | 23,120 | | 15,077 | |
| Other (including investment funds, airlines and shipping) | 115,633 | | 30,949 | | 166,320 | | 27,986 | |
| Total | $ | 180,130 | | $ | 55,315 | | $ | 232,676 | | $ | 51,869 | |
19.21. DERIVATIVES
In the ordinary course of business, Citigroup enters into various types of derivative transactions. All derivatives are recorded in Trading account assets/Trading account liabilities on the Consolidated Balance Sheet. For additional information regarding Citi’s use of and accounting for derivatives, see Note 2223 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
Information pertaining to Citigroup’s derivatives activities, based on notional amounts, is presented in the table below. Derivative notional amounts are reference amounts from which contractual payments are derived and do not represent a complete measure of Citi’s exposure to derivative transactions. Citi’s derivative exposure arises primarily from
market fluctuations (i.e., market risk), counterparty failure (i.e., credit risk) and/or periods of high volatility or financial stress (i.e., liquidity risk), as well as any market valuation adjustments that may be required on the transactions. Moreover, notional amounts do not reflect the netting of offsetting trades. For example, if Citi enters into a receive-fixed interest rate swap with $100 million notional, and offsets this risk with an identical but opposite pay-fixed position with a different counterparty, $200 million in derivative notionals is reported, although these offsetting positions may result in de minimis overall market risk.
In addition, aggregate derivative notional amounts can fluctuate from period to period in the normal course of business based on Citi’s market share, levels of client activity and other factors.
Derivative Notionals
| | | | Hedging instruments under ASC 815 | Trading derivative instruments | | Hedging instruments under ASC 815 | Trading derivative instruments |
| In millions of dollars | In millions of dollars | September 30,
2022 | December 31,
2021 | September 30,
2022 | December 31,
2021 | | In millions of dollars | September 30,
2023 | December 31,
2022 | September 30,
2023 | December 31,
2022 | |
| Interest rate contracts | Interest rate contracts | | | | | Interest rate contracts | | | | |
| Swaps | Swaps | $ | 241,324 | | $ | 267,035 | | $ | 23,601,980 | | $ | 21,873,538 | | | Swaps | $ | 257,165 | | $ | 255,280 | | $ | 22,518,303 | | $ | 23,780,711 | | |
| Futures and forwards | Futures and forwards | — | | — | | 2,646,937 | | 2,383,702 | | | Futures and forwards | — | | — | | 3,457,157 | | 2,966,025 | | |
| Written options | Written options | — | | — | | 1,804,687 | | 1,584,451 | | | Written options | — | | — | | 2,776,838 | | 1,937,025 | | |
| Purchased options | Purchased options | — | | — | | 1,722,756 | | 1,428,376 | | | Purchased options | — | | — | | 2,593,989 | | 1,881,291 | | |
| Total interest rate contracts | Total interest rate contracts | $ | 241,324 | | $ | 267,035 | | $ | 29,776,360 | | $ | 27,270,067 | | | Total interest rate contracts | $ | 257,165 | | $ | 255,280 | | $ | 31,346,287 | | $ | 30,565,052 | | |
| Foreign exchange contracts | Foreign exchange contracts | | | | | | Foreign exchange contracts | | | | | |
| Swaps | Swaps | $ | 44,981 | | $ | 47,298 | | $ | 6,486,067 | | $ | 6,288,193 | | | Swaps | $ | 44,147 | | $ | 48,678 | | $ | 7,545,125 | | $ | 6,746,070 | | |
| Futures, forwards and spot | Futures, forwards and spot | 40,271 | | 50,926 | | 3,877,382 | | 4,316,242 | | | Futures, forwards and spot | 48,418 | | 43,666 | | 4,209,683 | | 3,350,341 | | |
| Written options | Written options | — | | — | | 951,315 | | 664,942 | | | Written options | — | | — | | 829,689 | | 789,077 | | |
| Purchased options | Purchased options | — | | — | | 938,775 | | 651,958 | | | Purchased options | — | | — | | 823,706 | | 783,591 | | |
| Total foreign exchange contracts | Total foreign exchange contracts | $ | 85,252 | | $ | 98,224 | | $ | 12,253,539 | | $ | 11,921,335 | | | Total foreign exchange contracts | $ | 92,565 | | $ | 92,344 | | $ | 13,408,203 | | $ | 11,669,079 | | |
| Equity contracts | Equity contracts | | | | | | Equity contracts | | | | | |
| Swaps | Swaps | $ | — | | $ | — | | $ | 257,136 | | $ | 269,062 | | | Swaps | $ | — | | $ | — | | $ | 291,691 | | $ | 266,115 | | |
| Futures and forwards | Futures and forwards | — | | — | | 85,257 | | 71,363 | | | Futures and forwards | — | | — | | 94,385 | | 76,935 | | |
| Written options | Written options | — | | — | | 520,219 | | 492,433 | | | Written options | — | | — | | 622,464 | | 482,266 | | |
| Purchased options | Purchased options | — | | — | | 438,795 | | 398,129 | | | Purchased options | — | | — | | 504,349 | | 387,766 | | |
| Total equity contracts | Total equity contracts | $ | — | | $ | — | | $ | 1,301,407 | | $ | 1,230,987 | | | Total equity contracts | $ | — | | $ | — | | $ | 1,512,889 | | $ | 1,213,082 | | |
| Commodity and other contracts | Commodity and other contracts | | | | | | Commodity and other contracts | | | | | |
| Swaps | Swaps | $ | — | | $ | — | | $ | 93,580 | | $ | 91,962 | | | Swaps | $ | — | | $ | — | | $ | 85,144 | | $ | 90,884 | | |
| Futures and forwards | Futures and forwards | 1,381 | | 2,096 | | 173,404 | | 157,195 | | | Futures and forwards | 2,948 | | 1,571 | | 164,020 | | 165,314 | | |
| Written options | Written options | — | | — | | 55,264 | | 51,224 | | | Written options | — | | — | | 54,286 | | 45,862 | | |
| Purchased options | Purchased options | — | | — | | 52,101 | | 47,868 | | | Purchased options | — | | — | | 51,815 | | 48,197 | | |
| Total commodity and other contracts | Total commodity and other contracts | $ | 1,381 | | $ | 2,096 | | $ | 374,349 | | $ | 348,249 | | | Total commodity and other contracts | $ | 2,948 | | $ | 1,571 | | $ | 355,265 | | $ | 350,257 | | |
Credit derivatives(1) | Credit derivatives(1) | | | | | | Credit derivatives(1) | | | | | |
| Protection sold | Protection sold | $ | — | | $ | — | | $ | 662,018 | | $ | 572,486 | | | Protection sold | $ | — | | $ | — | | $ | 765,188 | | $ | 593,136 | | |
| Protection purchased | Protection purchased | — | | — | | 698,039 | | 645,996 | | | Protection purchased | — | | — | | 828,691 | | 641,639 | | |
| Total credit derivatives | Total credit derivatives | $ | — | | $ | — | | $ | 1,360,057 | | $ | 1,218,482 | | | Total credit derivatives | $ | — | | $ | — | | $ | 1,593,879 | | $ | 1,234,775 | | |
| Total derivative notionals | Total derivative notionals | $ | 327,957 | | $ | 367,355 | | $ | 45,065,712 | | $ | 41,989,120 | | | Total derivative notionals | $ | 352,678 | | $ | 349,195 | | $ | 48,216,523 | | $ | 45,032,245 | | |
(1)Credit derivatives are arrangements designed to allow one party (protection purchaser) to transfer the credit risk of a “reference asset” to another party (protection seller). These arrangements allow a protection seller to assume the credit risk associated with the reference asset without directly purchasing that asset. The Company enters into credit derivative positions for purposes such as risk management, yield enhancement, reduction of credit concentrations and diversification of overall risk.
The following tables present the gross and net fair values of the Company’s derivative transactions and the related offsetting amounts as of September 30, 20222023 and December 31, 2021.2022. Gross positive fair values are offset against gross negative fair values by counterparty, pursuant to enforceable master netting agreements. Under ASC 815-10-45, payables and receivables in respect of cash collateral received from or paid to a given counterparty pursuant to a credit support annex are included in the offsetting amount if a legal opinion supporting the enforceability of netting and collateral rights has been obtained. GAAP does not permit similar offsetting for security collateral.
In addition, the following tables reflect rule changes adopted by clearing organizations that require or allow entities to treat certain derivative assets, liabilities and the related variation margin as settlement of the related derivative fair values for legal and accounting purposes, as opposed to presenting gross derivative assets and liabilities that are subject to collateral, whereby the counterparties would also record a related collateral payable or receivable. The tables also present amounts that are not permitted to be offset, such as security collateral or cash collateral posted at third-party custodians, but which would be eligible for offsetting to the extent that an event of default has occurred and a legal opinion supporting enforceability of the netting and collateral rights has been obtained.
Derivative Mark-to-Market (MTM) Receivables/Payables
| | In millions of dollars at September 30, 2022 | Derivatives classified in
Trading account assets/liabilities(1)(2) | |
| | | Derivatives classified in
Trading account assets/liabilities(1)(2) |
| In millions of dollars at September 30, 2023 | | In millions of dollars at September 30, 2023 | Assets | Liabilities |
| Derivatives instruments designated as ASC 815 hedges | Derivatives instruments designated as ASC 815 hedges | Assets | Liabilities | Derivatives instruments designated as ASC 815 hedges | |
| Over-the-counter | Over-the-counter | $ | 601 | | $ | — | | Over-the-counter | $ | 351 | | $ | 7 | |
| Cleared | Cleared | 139 | | 68 | | Cleared | 422 | | 22 | |
| | Interest rate contracts | Interest rate contracts | $ | 740 | | $ | 68 | | Interest rate contracts | $ | 773 | | $ | 29 | |
| Over-the-counter | Over-the-counter | $ | 2,343 | | $ | 1,806 | | Over-the-counter | $ | 1,553 | | $ | 1,747 | |
| Cleared | Cleared | 14 | | — | | Cleared | 2 | | — | |
| | Foreign exchange contracts | Foreign exchange contracts | $ | 2,357 | | $ | 1,806 | | Foreign exchange contracts | $ | 1,555 | | $ | 1,747 | |
| | Total derivatives instruments designated as ASC 815 hedges | Total derivatives instruments designated as ASC 815 hedges | $ | 3,097 | | $ | 1,874 | | Total derivatives instruments designated as ASC 815 hedges | $ | 2,328 | | $ | 1,776 | |
| Derivatives instruments not designated as ASC 815 hedges | Derivatives instruments not designated as ASC 815 hedges | | Derivatives instruments not designated as ASC 815 hedges | |
| Over-the-counter | Over-the-counter | $ | 131,748 | | $ | 125,570 | | Over-the-counter | $ | 124,279 | | $ | 119,409 | |
| Cleared | Cleared | 57,713 | | 57,704 | | Cleared | 53,859 | | 53,634 | |
| Exchange traded | Exchange traded | 382 | | 323 | | Exchange traded | 207 | | 187 | |
| Interest rate contracts | Interest rate contracts | $ | 189,843 | | $ | 183,597 | | Interest rate contracts | $ | 178,345 | | $ | 173,230 | |
| Over-the-counter | Over-the-counter | $ | 250,015 | | $ | 246,503 | | Over-the-counter | $ | 172,079 | | $ | 164,527 | |
| Cleared | Cleared | 954 | | 1,005 | | Cleared | 679 | | 659 | |
| Exchange traded | Exchange traded | — | | 4 | | Exchange traded | 4 | | 18 | |
| Foreign exchange contracts | Foreign exchange contracts | $ | 250,969 | | $ | 247,512 | | Foreign exchange contracts | $ | 172,762 | | $ | 165,204 | |
| Over-the-counter | Over-the-counter | $ | 28,909 | | $ | 31,335 | | Over-the-counter | $ | 19,000 | | $ | 22,006 | |
| Cleared | Cleared | 32 | | 3 | | Cleared | 19 | | 120 | |
| Exchange traded | Exchange traded | 31,915 | | 32,568 | | Exchange traded | 24,034 | | 24,373 | |
| Equity contracts | Equity contracts | $ | 60,856 | | $ | 63,906 | | Equity contracts | $ | 43,053 | | $ | 46,499 | |
| Over-the-counter | Over-the-counter | $ | 47,061 | | $ | 39,429 | | Over-the-counter | $ | 15,460 | | $ | 16,226 | |
| | Exchange traded | Exchange traded | 2,334 | | 3,101 | | Exchange traded | 827 | | 1,034 | |
| Commodity and other contracts | Commodity and other contracts | $ | 49,395 | | $ | 42,530 | | Commodity and other contracts | $ | 16,287 | | $ | 17,260 | |
| Over-the-counter | Over-the-counter | $ | 6,399 | | $ | 5,343 | | Over-the-counter | $ | 6,922 | | $ | 5,744 | |
| Cleared | Cleared | 3,826 | | 3,999 | | Cleared | 5,720 | | 5,333 | |
| | Credit derivatives | Credit derivatives | $ | 10,225 | | $ | 9,342 | | Credit derivatives | $ | 12,642 | | $ | 11,077 | |
| Total derivatives instruments not designated as ASC 815 hedges | Total derivatives instruments not designated as ASC 815 hedges | $ | 561,288 | | $ | 546,887 | | Total derivatives instruments not designated as ASC 815 hedges | $ | 423,089 | | $ | 413,270 | |
| Total derivatives | Total derivatives | $ | 564,385 | | $ | 548,761 | | Total derivatives | $ | 425,417 | | $ | 415,046 | |
| Less: Netting agreements(3) | Less: Netting agreements(3) | $ | (431,992) | | $ | (431,992) | | Less: Netting agreements(3) | $ | (333,991) | | $ | (333,991) | |
Less: Netting cash collateral received/paid(4) | Less: Netting cash collateral received/paid(4) | (34,709) | | (44,172) | | Less: Netting cash collateral received/paid(4) | (22,872) | | (26,294) | |
Net receivables/payables included on the Consolidated Balance Sheet(5) | Net receivables/payables included on the Consolidated Balance Sheet(5) | $ | 97,684 | | $ | 72,597 | | Net receivables/payables included on the Consolidated Balance Sheet(5) | $ | 68,554 | | $ | 54,761 | |
Additional amounts subject to an enforceable master netting agreement,
but not offset on the Consolidated Balance Sheet | Additional amounts subject to an enforceable master netting agreement,
but not offset on the Consolidated Balance Sheet | | Additional amounts subject to an enforceable master netting agreement,
but not offset on the Consolidated Balance Sheet | |
| | Less: Cash collateral received/paid | Less: Cash collateral received/paid | $ | (1,789) | | $ | (2,034) | | Less: Cash collateral received/paid | $ | (818) | | $ | (254) | |
| Less: Non-cash collateral received/paid | Less: Non-cash collateral received/paid | (5,216) | | (14,274) | | Less: Non-cash collateral received/paid | (2,933) | | (10,741) | |
Total net receivables/payables(5) | Total net receivables/payables(5) | $ | 90,679 | | $ | 56,289 | | Total net receivables/payables(5) | $ | 64,803 | | $ | 43,766 | |
(1)The derivative fair values are also presented in Note 20.22.
(2)Over-the-counter (OTC) derivatives are derivatives executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house. Cleared derivatives include derivatives executed bilaterally with a counterparty in the OTC market, but then novated to a central clearing house, whereby the central clearing house becomes the counterparty to both of the original counterparties. Exchange-traded derivatives include derivatives executed directly on an organized exchange that provides pre-trade price transparency.
(3)Represents the netting of balances with the same counterparty under enforceable netting agreements. Approximately $353$255 billion, $46$56 billion and $33$23 billion of the netting against trading account asset/liability balances is attributable to each of the OTC, cleared and exchange-traded derivatives, respectively.
(4)Represents the netting of cash collateral paid and received by counterparties under enforceable credit support agreements. Substantially all netting of cash collateral received and paid is against OTC derivative assets and liabilities, respectively.
(5)The net receivables/payables include approximately $7$4 billion of derivative asset and $11$9 billion of derivative liability fair values not subject to enforceable master netting agreements, respectively.
| | In millions of dollars at December 31, 2021 | Derivatives classified in
Trading account assets/liabilities(1)(2) | |
| | | Derivatives classified in
Trading account assets/liabilities(1)(2) |
| In millions of dollars at December 31, 2022 | | In millions of dollars at December 31, 2022 | Assets | Liabilities |
| Derivatives instruments designated as ASC 815 hedges | Derivatives instruments designated as ASC 815 hedges | Assets | Liabilities | Derivatives instruments designated as ASC 815 hedges | |
| Over-the-counter | Over-the-counter | $ | 1,167 | | $ | 6 | | Over-the-counter | $ | 468 | | $ | 1 | |
| Cleared | Cleared | 122 | | 89 | | Cleared | 129 | | 101 | |
| | Interest rate contracts | Interest rate contracts | $ | 1,289 | | $ | 95 | | Interest rate contracts | $ | 597 | | $ | 102 | |
| Over-the-counter | Over-the-counter | $ | 1,338 | | $ | 1,472 | | Over-the-counter | $ | 2,288 | | $ | 1,766 | |
| Cleared | Cleared | 6 | | — | | Cleared | 3 | | 3 | |
| | Foreign exchange contracts | Foreign exchange contracts | $ | 1,344 | | $ | 1,472 | | Foreign exchange contracts | $ | 2,291 | | $ | 1,769 | |
| | Total derivatives instruments designated as ASC 815 hedges | Total derivatives instruments designated as ASC 815 hedges | $ | 2,633 | | $ | 1,567 | | Total derivatives instruments designated as ASC 815 hedges | $ | 2,888 | | $ | 1,871 | |
| Derivatives instruments not designated as ASC 815 hedges | Derivatives instruments not designated as ASC 815 hedges | | Derivatives instruments not designated as ASC 815 hedges | |
| Over-the-counter | Over-the-counter | $ | 152,524 | | $ | 138,114 | | Over-the-counter | $ | 126,844 | | $ | 119,854 | |
| Cleared | Cleared | 11,579 | | 11,821 | | Cleared | 50,515 | | 52,566 | |
| Exchange traded | Exchange traded | 96 | | 44 | | Exchange traded | 248 | | 98 | |
| Interest rate contracts | Interest rate contracts | $ | 164,199 | | $ | 149,979 | | Interest rate contracts | $ | 177,607 | | $ | 172,518 | |
| Over-the-counter | Over-the-counter | $ | 133,357 | | $ | 133,548 | | Over-the-counter | $ | 184,869 | | $ | 183,578 | |
| Cleared | Cleared | 848 | | 278 | | Cleared | 502 | | 643 | |
| | Exchange traded | | Exchange traded | 1 | | 5 | |
| Foreign exchange contracts | Foreign exchange contracts | $ | 134,205 | | $ | 133,826 | | Foreign exchange contracts | $ | 185,372 | | $ | 184,226 | |
| Over-the-counter | Over-the-counter | $ | 23,452 | | $ | 28,352 | | Over-the-counter | $ | 19,674 | | $ | 21,871 | |
| Cleared | Cleared | 19 | | — | | Cleared | 1 | | 4 | |
| Exchange traded | Exchange traded | 21,781 | | 21,332 | | Exchange traded | 22,732 | | 21,908 | |
| Equity contracts | Equity contracts | $ | 45,252 | | $ | 49,684 | | Equity contracts | $ | 42,407 | | $ | 43,783 | |
| Over-the-counter | Over-the-counter | $ | 29,279 | | $ | 29,833 | | Over-the-counter | $ | 27,285 | | $ | 24,912 | |
| | Exchange traded | Exchange traded | 1,065 | | 1,546 | | Exchange traded | 1,039 | | 1,406 | |
| Commodity and other contracts | Commodity and other contracts | $ | 30,344 | | $ | 31,379 | | Commodity and other contracts | $ | 28,324 | | $ | 26,318 | |
| Over-the-counter | Over-the-counter | $ | 6,896 | | $ | 6,959 | | Over-the-counter | $ | 6,836 | | $ | 5,807 | |
| Cleared | Cleared | 3,322 | | 4,056 | | Cleared | 1,553 | | 1,970 | |
| | Credit derivatives | Credit derivatives | $ | 10,218 | | $ | 11,015 | | Credit derivatives | $ | 8,389 | | $ | 7,777 | |
| Total derivatives instruments not designated as ASC 815 hedges | Total derivatives instruments not designated as ASC 815 hedges | $ | 384,218 | | $ | 375,883 | | Total derivatives instruments not designated as ASC 815 hedges | $ | 442,099 | | $ | 434,622 | |
| Total derivatives | Total derivatives | $ | 386,851 | | $ | 377,450 | | Total derivatives | $ | 444,987 | | $ | 436,493 | |
| Less: Netting agreements(3) | Less: Netting agreements(3) | $ | (292,628) | | $ | (292,628) | | Less: Netting agreements(3) | $ | (346,545) | | $ | (346,545) | |
Less: Netting cash collateral received/paid(4) | Less: Netting cash collateral received/paid(4) | (24,447) | | (29,306) | | Less: Netting cash collateral received/paid(4) | (23,136) | | (30,032) | |
Net receivables/payables included on the Consolidated Balance Sheet(5) | Net receivables/payables included on the Consolidated Balance Sheet(5) | $ | 69,776 | | $ | 55,516 | | Net receivables/payables included on the Consolidated Balance Sheet(5) | $ | 75,306 | | $ | 59,916 | |
Additional amounts subject to an enforceable master netting agreement,
but not offset on the Consolidated Balance Sheet | Additional amounts subject to an enforceable master netting agreement,
but not offset on the Consolidated Balance Sheet | | Additional amounts subject to an enforceable master netting agreement,
but not offset on the Consolidated Balance Sheet | |
| | Less: Cash collateral received/paid | Less: Cash collateral received/paid | $ | (907) | | $ | (538) | | Less: Cash collateral received/paid | $ | (1,455) | | $ | (2,272) | |
| Less: Non-cash collateral received/paid | Less: Non-cash collateral received/paid | (5,777) | | (13,607) | | Less: Non-cash collateral received/paid | (5,923) | | (13,475) | |
Total net receivables/payables(5) | Total net receivables/payables(5) | $ | 63,092 | | $ | 41,371 | | Total net receivables/payables(5) | $ | 67,928 | | $ | 44,169 | |
(1)The derivative fair values are also presented in Note 20.22.
(2)Over-the-counter (OTC)OTC derivatives are derivatives executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house. Cleared derivatives include derivatives executed bilaterally with a counterparty in the OTC market, but then novated to a central clearing house, whereby the central clearing house becomes the counterparty to both of the original counterparties. Exchange-traded derivatives include derivatives executed directly on an organized exchange that provides pre-trade price transparency.
(3)Represents the netting of balances with the same counterparty under enforceable netting agreements. Approximately $259$276 billion, $14$49 billion and $20$22 billion of the netting against trading account asset/liability balances is attributable to each of the OTC, cleared and exchange-traded derivatives, respectively.
(4)Represents the netting of cash collateral paid and received by counterparties under enforceable credit support agreements. Substantially all netting of cash collateral received and paid is against OTC derivative assets and liabilities, respectively.
(5)The net receivables/payables include approximately $10$14 billion of derivative asset and $11 billion of derivative liability fair values not subject to enforceable master netting agreements, respectively.
For the three and nine months ended September 30, 20222023 and 2021,2022, amounts recognized in Principal transactions in the Consolidated Statement of Income include certain derivatives not designated in a qualifying hedging relationship. Citigroup presents this disclosure by business classification, showing derivative gains and losses related to its trading activities together with gains and losses related to non-derivative instruments within the same trading portfolios, as this represents how these portfolios are risk managed. See Note 6 for further information.
The amounts recognized in Other revenue in the Consolidated Statement of Income related to derivatives not designated in a qualifying hedging relationship are shownpresented below. The table below does not include any offsetting gains (losses) on the economically hedged items to the extent that such amounts are also recorded in Other revenue.
| | | | Gains (losses) included in
Other revenue | | Gains (losses) included in
Other revenue |
| | Three Months Ended September 30, | Nine Months Ended September 30, | | Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | In millions of dollars | 2022 | 2021 | 2022 | 2021 | In millions of dollars | 2023 | 2022 | 2023 | 2022 |
| Interest rate contracts | Interest rate contracts | $ | 26 | | $ | 9 | | $ | 170 | | $ | (66) | | Interest rate contracts | $ | (16) | | $ | 26 | | $ | (47) | | $ | 170 | |
| Foreign exchange | Foreign exchange | (33) | | (26) | | (114) | | (60) | | Foreign exchange | (46) | | (33) | | (113) | | (114) | |
| Total | Total | $ | (7) | | $ | (17) | | $ | 56 | | $ | (126) | | Total | $ | (62) | | $ | (7) | | $ | (160) | | $ | 56 | |
Fair Value Hedges
Hedging of Benchmark Interest Rate Risk
Citigroup’sFor additional information regarding Citi’s fair value hedges, are primarily hedges of fixed-rate long-term debt or assets, such as available-for-sale debt securities or loans.
For qualifying fair value hedges of interest rate risk, the changes in the fair value of the derivative and the change in the fair value of the hedged item attributablesee Note 23 to the hedged risk are presented within Interest revenue or Interest expense based on whether the hedged item is an asset or a liability.
Citigroup has executed a last-of-layer hedge, which permits an entity to hedge the interest rate risk of a stated portion of a closed portfolio of prepayable financial assets that are expected to remain outstanding for the designated tenor of the hedge. In accordance with ASC 815, an entity may exclude prepayment risk when measuring the changeConsolidated Financial Statements in fair value of the hedged item attributable to interest rate risk under the last-of-layer approach. Similar to other fair value hedges, where the hedged item is an asset, the fair value of the hedged item attributable to interest rate risk will be presented in Interest revenue along with the change in the fair value of the hedging instrument.Citi’s 2022 Form 10-K.
Hedging of Foreign Exchange Risk
Citigroup hedges the change in fair value attributable to foreign exchange rate movements in available-for-sale debt securities and long-term debt that are denominated in currencies other than the functional currency of the entity holding the securities or issuing the debt. The hedging instrument is generally a forward foreign exchange contract or a cross-currency swap contract. Changes in the fair value of the forward points (i.e., the spot-forward difference) of forward contracts are excluded from the assessment of hedge effectiveness and are generally reflected directly in earnings over the life of the hedge. Citi also excludes changes in the fair value of cross-currency basis associated with cross-currency swaps from the assessment of hedge effectiveness and records them in Other comprehensive income.
Hedging of Commodity Price Risk
Citigroup hedges the change in fair value attributable to spot price movements in physical commodities inventories. The hedging instrument is a futures contract to sell the underlying commodity. In this hedge, the change in the value of the hedged inventory is reflected in earnings, which offsets the change in the fair value of the futures contract that is also reflected in earnings. Although the entire change in the fair value of the hedging instrument is recorded in earnings, Citigroup excludes changes in the fair value of the forward points (i.e., spot-forward difference) of the futures contract from the assessment of hedge effectiveness, and they are generally reflected directly in earnings over the life of the hedge. Citi also excludes changes in the fair value of forward points from the assessment of hedge effectiveness and records them in Other comprehensive income.
The following table summarizes the gains (losses) on the Company’s fair value hedges:
| | | | Gains (losses) on fair value hedges(1) | | Gains (losses) on fair value hedges(1) |
| | Three Months Ended September 30, | Nine Months Ended September 30, | | Three Months Ended September 30, | Nine Months Ended September 30, |
| | 2022 | 2021 | 2022 | 2021 | | 2023 | 2022 | 2023 | 2022 |
| In millions of dollars | In millions of dollars | Other revenue | Net interest income | Other revenue | Net interest income | Other
revenue | Net interest income | Other revenue | Net interest income | In millions of dollars | Other revenue | Net interest income | Other revenue | Net interest income | Other
revenue | Net interest income | Other revenue | Net interest income |
| Gain (loss) on the hedging derivatives included in assessment of the effectiveness of fair value hedges | Gain (loss) on the hedging derivatives included in assessment of the effectiveness of fair value hedges | | | | | | | | Gain (loss) on the hedging derivatives included in assessment of the effectiveness of fair value hedges | | | | | | | |
| Interest rate hedges | Interest rate hedges | $ | — | | $ | (1,855) | | $ | — | | $ | (747) | | $ | — | | $ | (8,238) | | $ | — | | $ | (4,228) | | Interest rate hedges | $ | — | | $ | 19 | | $ | — | | $ | (1,855) | | $ | — | | $ | (473) | | $ | — | | $ | (8,238) | |
| Foreign exchange hedges | Foreign exchange hedges | (964) | | — | | (724) | | — | | (2,623) | | — | | (714) | | — | | Foreign exchange hedges | (577) | | — | | (964) | | — | | 709 | | — | | (2,623) | | — | |
| Commodity hedges | (977) | | — | | (166) | | — | | (362) | | — | | (732) | | — | | |
Commodity hedges(4) | | Commodity hedges(4) | 289 | | — | | (977) | | — | | (36) | | — | | (362) | | — | |
| Total gain (loss) on the hedging derivatives included in assessment of the effectiveness of fair value hedges | Total gain (loss) on the hedging derivatives included in assessment of the effectiveness of fair value hedges | $ | (1,941) | | $ | (1,855) | | $ | (890) | | $ | (747) | | $ | (2,985) | | $ | (8,238) | | $ | (1,446) | | $ | (4,228) | | Total gain (loss) on the hedging derivatives included in assessment of the effectiveness of fair value hedges | $ | (288) | | $ | 19 | | $ | (1,941) | | $ | (1,855) | | $ | 673 | | $ | (473) | | $ | (2,985) | | $ | (8,238) | |
| Gain (loss) on the hedged item in designated and qualifying fair value hedges | Gain (loss) on the hedged item in designated and qualifying fair value hedges | | | | | | | | Gain (loss) on the hedged item in designated and qualifying fair value hedges | | | | | | | |
| Interest rate hedges | Interest rate hedges | $ | — | | $ | 1,793 | | $ | — | | $ | 667 | | $ | — | | $ | 8,036 | | $ | — | | $ | 3,934 | | Interest rate hedges | $ | — | | $ | (21) | | $ | — | | $ | 1,793 | | $ | — | | $ | 460 | | $ | — | | $ | 8,036 | |
| Foreign exchange hedges | Foreign exchange hedges | 964 | | — | | 725 | | — | | 2,621 | | — | | 715 | | — | | Foreign exchange hedges | 577 | | — | | 964 | | — | | (709) | | — | | 2,621 | | — | |
Commodity hedges | Commodity hedges | 977 | | — | | 166 | | — | | 362 | | — | | 732 | | — | | Commodity hedges | (289) | | — | | 977 | | — | | 36 | | — | | 362 | | — | |
| Total gain (loss) on the hedged item in designated and qualifying fair value hedges | Total gain (loss) on the hedged item in designated and qualifying fair value hedges | $ | 1,941 | | $ | 1,793 | | $ | 891 | | $ | 667 | | $ | 2,983 | | $ | 8,036 | | $ | 1,447 | | $ | 3,934 | | Total gain (loss) on the hedged item in designated and qualifying fair value hedges | $ | 288 | | $ | (21) | | $ | 1,941 | | $ | 1,793 | | $ | (673) | | $ | 460 | | $ | 2,983 | | $ | 8,036 | |
Net gain (loss) on the hedging derivatives excluded from
assessment of the effectiveness of fair value hedges | Net gain (loss) on the hedging derivatives excluded from
assessment of the effectiveness of fair value hedges | | | | | | | | Net gain (loss) on the hedging derivatives excluded from assessment of the effectiveness of fair value hedges | | | | | | | |
| Interest rate hedges | Interest rate hedges | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | (11) | | $ | — | | $ | (3) | | Interest rate hedges | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | (11) | |
Foreign exchange hedges(2) | Foreign exchange hedges(2) | 79 | | — | | 79 | | — | | 183 | | — | | 96 | | — | | Foreign exchange hedges(2) | 9 | | — | | 79 | | — | | 33 | | — | | 183 | | — | |
| Commodity hedges | 7 | | — | | 42 | | — | | 30 | | — | | (33) | | — | | |
Commodity hedges(3)(4) | | Commodity hedges(3)(4) | 100 | | — | | 7 | | — | | 201 | | — | | 30 | | — | |
| Total net gain (loss) on the hedging derivatives excluded from assessment of the effectiveness of fair value hedges | Total net gain (loss) on the hedging derivatives excluded from assessment of the effectiveness of fair value hedges | $ | 86 | | $ | — | | $ | 121 | | $ | — | | $ | 213 | | $ | (11) | | $ | 63 | | $ | (3) | | Total net gain (loss) on the hedging derivatives excluded from assessment of the effectiveness of fair value hedges | $ | 109 | | $ | — | | $ | 86 | | $ | — | | $ | 234 | | $ | — | | $ | 213 | | $ | (11) | |
(1)Gain (loss) amounts for interest rate risk hedges are included in Interest income/Interest expense. The accrued interest income on fair value hedges is recorded in Net interest incomeand is excluded from this table. Amounts included both hedges of AFS securities and long-term debt on a net basis, which largely offset in the current period.
(2)Amounts relaterelated to the premium associated with forward contracts (differential between spot and contractual forward rates)points (i.e., the spot-forward difference) that are excluded from the assessment of hedge effectiveness and are generally reflected directly in earnings.earnings under the mark-to-market approach. Amounts related to cross-currency basis, which are recognized in AOCI, are not reflected in the table above. The amount of cross-currency basis included in AOCI was $(10) million and $(14) million for the three and nine months ended September 30, 2023 and $40 million and $116 million for the three and nine months ended September 30, 2022, and $12 million and $(14) million forrespectively.
(3)Amounts related to the three and nine monthsforward points (i.e., the spot-forward difference) that are excluded from the assessment of hedge effectiveness reflected directly in earnings under the mark-to-market approach or recorded in AOCI under the amortization approach. The quarter ended September 30, 2021,2023 includes gain (loss) of approximately $93 million and $7 million under the mark-to-market approach and amortization approach, respectively. The quarter ended September 30, 2022 includes gain (loss) of approximately $2 million and $5 million under the mark-to-market approach and amortization approach, respectively.
Cumulative Basis Adjustment
Upon electing to apply ASC 815 fair value hedge accounting, the carrying value of the hedged item is adjusted to reflect the cumulative changes in the hedged risk. This cumulative basis adjustment becomes part of the carrying amount of the hedged item until the hedged item is derecognized from the balance sheet. The table below presents the carrying amount of Citi’s hedged assets and liabilities under qualifying fair value hedges at September 30, 20222023 and December 31, 2021,2022, along with the cumulative basis adjustments included in the carrying value of those hedged assets and liabilities that would reverse through earnings in future periods.
| | In millions of dollars | In millions of dollars | In millions of dollars |
| Balance sheet line item in which hedged item is recorded | Balance sheet line item in which hedged item is recorded | Carrying amount of hedged asset/ liability | Cumulative basis adjustment increasing (decreasing) the carrying amount | Balance sheet line item in which hedged item is recorded | Carrying amount of hedged asset/ liability(1) | Cumulative basis adjustment increasing (decreasing) the carrying amount |
| Active | De-designated | Active | De-designated |
| As of September 30, 2022 | | |
| As of September 30, 2023 | | As of September 30, 2023 | |
Debt securities AFS(3)(5) | Debt securities AFS(3)(5) | $ | 97,753 | | $ | (3,207) | | $ | (383) | | Debt securities AFS(3)(5) | $ | 95,301 | | $ | (3,180) | | $ | (343) | |
Corporate loans(3) | | Corporate loans(3) | 4,782 | | (171) | | — | |
| Long-term debt | Long-term debt | 139,620 | | (6,706) | | (1,879) | | Long-term debt | 137,360 | | (3,330) | | (4,968) | |
| As of December 31, 2021 | | |
Debt securities AFS(2)(3) | $ | 62,733 | | $ | 149 | | $ | 212 | | |
| As of December 31, 2022 | | As of December 31, 2022 | |
Debt securities AFS(4)(5) | | Debt securities AFS(4)(5) | $ | 98,837 | | $ | (2,976) | | $ | (333) | |
| | Long-term debt | Long-term debt | 149,305 | | 623 | | 3,936 | | Long-term debt | 144,549 | | (5,040) | | (3,399) | |
(1)Excludes physical commodities inventories with a carrying value of approximately $7 billion as of September 30, 2023, which includes cumulative basis adjustments of approximately $113 million for active hedges.
(2)These amounts include a cumulative basis adjustment of $(113)$(542) million for active hedges and $(316)$(294) million for de-designated hedges as of September 30, 2023, related to certain financial assets previously designated as the hedged item in a fair value hedge using the portfolio layer approach. The Company designated approximately $13 billion as the hedged amount (from a closed portfolio of financial assets with a carrying value of $19 billion as of September 30, 2023) in a portfolio layerhedging relationship.
(3)All hedged corporate loans are designated in a fair value hedge using the portfolio layer approach. The Company designated approximately $3.8 billion as the hedged amount (from a closed portfolio of financial assets with a carrying value of $4.8 billion as of September 30, 2023).
(4)These amounts include a cumulative basis adjustment of $(91) million for active hedges and $(309) million for de-designated hedges as of December 31, 2022, related to certain prepayable financial assets previously designated as the hedged item in a fair value hedge using the last-of-layer approach. The Company designated approximately $3 billion as the hedged amount (from a closed portfolio of prepayable financial assets with a carrying value of $11 billion as of September 30,December 31, 2022) in a last-of-layer hedging relationship.
(2)These amounts include a cumulative basis adjustment of $24 million for active hedges and $(92) million for de-designated hedges as of December 31, 2021, related to certain prepayable financial assets designated as the hedged item in a fair value hedge using the last-of-layer approach. The Company designated approximately $6 billion as the hedged amount (from a closed portfolio of prepayable financial assets with a carrying value of $25 billion as of December 31, 2021) in a last-of-layer hedging relationship.
(3)(5)Carrying amount represents the amortized cost.
Cash Flow Hedges
Citigroup hedges the variability of forecasted cash flows due to changes in contractually specified interest rates associated with floating-rate assets/liabilities and other forecasted transactions. These cash flow hedging relationships use either regression analysis or dollar-offset ratio analysis to assess whether the hedging relationships are highly effective at inception and on an ongoing basis.
For cash flow hedges, the entire change in the fair value of the hedging derivative is recognized in AOCI and then reclassified to earnings in the same period that the forecasted hedged cash flows impact earnings. The net gain (loss) associated with cash flow hedges expected to be reclassified from AOCI within 12 months of September 30, 20222023 is approximately $(1.6)$(1.0) billion. The maximum length of time over which forecasted cash flows are hedged is 1015 years.
The pretax change in AOCI from cash flow hedges is presented below. The after-tax impact of cash flow hedges on AOCI is shown in Note 17.18.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | 2022 | 2021 | 2022 | 2021 |
Amount of gain (loss) recognized in AOCI on derivatives | | | | |
| Interest rate contracts | $ | (1,196) | | $ | 19 | | $ | (3,637) | | $ | (397) | |
| Foreign exchange contracts | 29 | | (16) | | 45 | | (16) | |
Total gain (loss) recognized in AOCI | $ | (1,167) | | $ | 3 | | $ | (3,592) | | $ | (413) | |
| Other
revenue | Net interest
revenue | Other
revenue |
Net interest
revenue | Other
revenue | Net interest
revenue | Other
revenue | Net interest
revenue |
Amount of gain (loss) reclassified from AOCI to earnings(1) | | | | | | | | |
| Interest rate contracts | $ | — | | $ | (141) | | $ | — | | $ | 269 | | $ | — | | $ | 344 | | $ | — | | $ | 809 | |
| Foreign exchange contracts | (1) | | — | | (1) | | — | | (3) | | — | | (3) | | — | |
Total gain (loss) reclassified from AOCI into earnings | $ | (1) | | $ | (141) | | $ | (1) | | $ | 269 | | $ | (3) | | $ | 344 | | $ | (3) | | $ | 809 | |
Net pretax change in cash flow hedges included within AOCI | | $ | (1,025) | | | $ | (265) | | | $ | (3,933) | | | $ | (1,219) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | 2023 | 2022 | 2023 | 2022 |
Amount of gain (loss) recognized in AOCI on derivatives | | | | |
| Interest rate contracts | $ | 467 | | $ | (1,196) | | $ | 208 | | $ | (3,637) | |
| Foreign exchange contracts | 10 | | 29 | | 15 | | 45 | |
Total gain (loss) recognized in AOCI | $ | 477 | | $ | (1,167) | | $ | 223 | | $ | (3,592) | |
| Other
revenue | Net
interest
income | Other
revenue |
Net
interest
income | Other
revenue | Net interest
income | Other
revenue | Net
interest
income |
Amount of gain (loss) reclassified from AOCI to earnings(1) | | | | | | | | |
| Interest rate contracts | $ | — | | $ | (480) | | $ | — | | $ | (141) | | $ | — | | $ | (1,444) | | $ | — | | $ | 344 | |
| Foreign exchange contracts | (1) | | — | | (1) | | — | | (3) | | — | | (3) | | — | |
Total gain (loss) reclassified from AOCI into earnings | $ | (1) | | $ | (480) | | $ | (1) | | $ | (141) | | $ | (3) | | $ | (1,444) | | $ | (3) | | $ | 344 | |
Net pretax change in cash flow hedges included within AOCI | | $ | 958 | | | $ | (1,025) | | | $ | 1,670 | | | $ | (3,933) | |
(1)All amounts reclassified into earnings for interest rate contracts are included in Interest income/Interest expense (Net interest income). For all other hedges, the amounts reclassified to earnings are included primarily in Other revenue and Net interest income in the Consolidated Statement of Income.
Net Investment Hedges
CitiCitigroup uses foreign currency forwards, cross-currency swaps, options and foreign currency-denominated debt instruments to manage the foreign exchange risk associated with Citi’sCitigroup’s equity investments in several non-U.S.-dollar-functional-currency foreign subsidiaries. Citi records the change in the fair value of these hedging instruments and the translation adjustment for the investments in these foreign subsidiaries in Foreign currency translation adjustment (CTA) within AOCI.
The pretax gain (loss) recorded in Foreign currency translation adjustmentCTA within AOCI, related to net investment hedges, was $363 million and $(586) million for the three and nine months ended September 30, 2023 and $812 million and $1.5 billion for the three and nine months ended September 30, 2022, and $700 million and $831 million for the three and nine months ended September 30, 2021, respectively. The three and nine months ended September 30, 2022 include a $1.0$1 million pretax gain and $46 million pretax loss related to net investment hedges, respectively, which were reclassified from AOCI into earnings (recorded in Other revenue).
Credit Derivatives
The following tables summarize the key characteristics of Citi’s credit derivatives portfolio by counterparty and derivative form:
| | | Fair values | Notionals | | Fair values | Notionals |
| In millions of dollars at September 30, 2022 | Receivable(1) | Payable(2) | Protection
purchased | Protection
sold | |
| By industry of counterparty | | | | |
| Banks | $ | 2,367 | | $ | 2,985 | | $ | 109,040 | | $ | 109,216 | | |
| Broker-dealers | 2,135 | | 1,415 | | 46,379 | | 42,384 | | |
| Non-financial | 64 | | 8 | | 2,147 | | 1,888 | | |
| Insurance and other financial institutions | 5,659 | | 4,934 | | 540,473 | | 508,530 | | |
| Total by industry of counterparty | $ | 10,225 | | $ | 9,342 | | $ | 698,039 | | $ | 662,018 | | |
| In millions of dollars at September 30, 2023 | | In millions of dollars at September 30, 2023 | Receivable(1) | Payable(2) | Protection
purchased | Protection
sold |
| By instrument | By instrument | | | | By instrument | | | |
| Credit default swaps and options | Credit default swaps and options | $ | 8,366 | | $ | 8,547 | | $ | 682,184 | | $ | 654,560 | | Credit default swaps and options | $ | 11,031 | | $ | 10,644 | | $ | 805,562 | | $ | 761,316 | |
| Total return swaps and other | Total return swaps and other | 1,859 | | 795 | | 15,855 | | 7,458 | | Total return swaps and other | 1,611 | | 433 | | 23,129 | | 3,872 | |
| Total by instrument | Total by instrument | $ | 10,225 | | $ | 9,342 | | $ | 698,039 | | $ | 662,018 | | Total by instrument | $ | 12,642 | | $ | 11,077 | | $ | 828,691 | | $ | 765,188 | |
| By rating of reference entity | By rating of reference entity | | | | By rating of reference entity | | | |
| Investment grade | Investment grade | $ | 4,534 | | $ | 3,742 | | $ | 540,193 | | $ | 508,631 | | Investment grade | $ | 6,809 | | $ | 5,579 | | $ | 656,154 | | $ | 611,363 | |
| Non-investment grade | Non-investment grade | 5,691 | | 5,600 | | 157,846 | | 153,387 | | Non-investment grade | 5,833 | | 5,498 | | 172,537 | | 153,825 | |
| Total by rating of reference entity | Total by rating of reference entity | $ | 10,225 | | $ | 9,342 | | $ | 698,039 | | $ | 662,018 | | Total by rating of reference entity | $ | 12,642 | | $ | 11,077 | | $ | 828,691 | | $ | 765,188 | |
| By maturity | By maturity | | | | By maturity | | | |
| Within 1 year | Within 1 year | $ | 2,276 | | $ | 1,918 | | $ | 153,088 | | $ | 159,624 | | Within 1 year | $ | 1,471 | | $ | 1,035 | | $ | 154,096 | | $ | 134,847 | |
| From 1 to 5 years | From 1 to 5 years | 5,319 | | 4,878 | | 461,986 | | 422,941 | | From 1 to 5 years | 8,977 | | 8,149 | | 578,360 | | 555,290 | |
| After 5 years | After 5 years | 2,630 | | 2,546 | | 82,965 | | 79,453 | | After 5 years | 2,194 | | 1,893 | | 96,235 | | 75,051 | |
| Total by maturity | Total by maturity | $ | 10,225 | | $ | 9,342 | | $ | 698,039 | | $ | 662,018 | | Total by maturity | $ | 12,642 | | $ | 11,077 | | $ | 828,691 | | $ | 765,188 | |
(1)The fair value amount receivable is composed of $8,304$4,697 million under protection purchased and $1,921$7,945 million under protection sold.
(2)The fair value amount payable is composed of $2,170$8,182 million under protection purchased and $7,172$2,895 million under protection sold.
| | | | Fair values | Notionals | | Fair values | Notionals |
| In millions of dollars at December 31, 2021 | Receivable(1) | Payable(2) | Protection
purchased | Protection
sold | |
| By industry of counterparty | | | | |
| Banks | $ | 2,375 | | $ | 3,031 | | $ | 108,415 | | $ | 103,756 | | |
| Broker-dealers | 1,962 | | 1,139 | | 44,364 | | 40,068 | | |
| Non-financial | 113 | | 306 | | 2,785 | | 2,728 | | |
| Insurance and other financial institutions | 5,768 | | 6,539 | | 490,432 | | 425,934 | | |
| Total by industry of counterparty | $ | 10,218 | | $ | 11,015 | | $ | 645,996 | | $ | 572,486 | | |
| In millions of dollars at December 31, 2022 | | In millions of dollars at December 31, 2022 | Receivable(1) | Payable(2) | Protection
purchased | Protection
sold |
| By instrument | By instrument | | | | By instrument | | | |
| Credit default swaps and options | Credit default swaps and options | $ | 9,923 | | $ | 10,234 | | $ | 628,136 | | $ | 565,131 | | Credit default swaps and options | $ | 6,867 | | $ | 7,360 | | $ | 623,981 | | $ | 586,504 | |
| Total return swaps and other | Total return swaps and other | 295 | | 781 | | 17,860 | | 7,355 | | Total return swaps and other | 1,522 | | 417 | | 17,658 | | 6,632 | |
| Total by instrument | Total by instrument | $ | 10,218 | | $ | 11,015 | | $ | 645,996 | | $ | 572,486 | | Total by instrument | $ | 8,389 | | $ | 7,777 | | $ | 641,639 | | $ | 593,136 | |
| By rating of reference entity | By rating of reference entity | | | | By rating of reference entity | | | |
| Investment grade | Investment grade | $ | 4,149 | | $ | 4,258 | | $ | 511,652 | | $ | 448,944 | | Investment grade | $ | 3,796 | | $ | 2,970 | | $ | 499,339 | | $ | 462,873 | |
| Non-investment grade | Non-investment grade | 6,069 | | 6,757 | | 134,344 | | 123,542 | | Non-investment grade | 4,593 | | 4,807 | | 142,300 | | 130,263 | |
| Total by rating of reference entity | Total by rating of reference entity | $ | 10,218 | | $ | 11,015 | | $ | 645,996 | | $ | 572,486 | | Total by rating of reference entity | $ | 8,389 | | $ | 7,777 | | $ | 641,639 | | $ | 593,136 | |
| By maturity | By maturity | | | | By maturity | | | |
| Within 1 year | Within 1 year | $ | 878 | | $ | 1,462 | | $ | 133,866 | | $ | 115,603 | | Within 1 year | $ | 1,753 | | $ | 1,801 | | $ | 147,031 | | $ | 148,721 | |
| From 1 to 5 years | From 1 to 5 years | 6,674 | | 6,638 | | 454,617 | | 413,174 | | From 1 to 5 years | 4,577 | | 4,134 | | 443,113 | | 407,293 | |
| After 5 years | After 5 years | 2,666 | | 2,915 | | 57,513 | | 43,709 | | After 5 years | 2,059 | | 1,842 | | 51,495 | | 37,122 | |
| Total by maturity | Total by maturity | $ | 10,218 | | $ | 11,015 | | $ | 645,996 | | $ | 572,486 | | Total by maturity | $ | 8,389 | | $ | 7,777 | | $ | 641,639 | | $ | 593,136 | |
(1) The fair value amount receivable is composed of $3,705$5,094 million under protection purchased and $6,513$3,295 million under protection sold.
(2) The fair value amount payable is composed of $7,354$3,573 million under protection purchased and $3,661$4,204 million under protection sold.
Credit Risk-Related Contingent Features in Derivatives
Certain derivative instruments contain provisions that require the Company to either post additional collateral or immediately settle any outstanding liability balances upon the occurrence of a specified event related to the credit risk of the Company. These events, which are defined by the existing derivative contracts, are primarily downgrades in the credit ratings of the Company and its affiliates.
The fair value (excluding CVA) of all derivative instruments with credit risk-related contingent features that were in a net liability position at September 30, 20222023 and December 31, 20212022 was $23$15 billion and $19$18 billion, respectively. The Company posted $20$13 billion and $16$15 billion as collateral for this exposure in the normal course of business as of September 30, 20222023 and December 31, 2021,2022, respectively.
A downgrade could trigger additional collateral or cash settlement requirements for the Company and certain affiliates. In the event that Citigroup and Citibank were downgraded a single notch by all three major rating agencies as of September 30, 2022,2023, the Company could be required to post an additional $1.3$0.7 billion as either collateral or settlement of the derivative transactions. In addition, the Company could be required to segregate with third-party custodians collateral previously received from existing derivative counterparties in the amount of $0.1 billion$4 million upon the single notch downgrade, resulting in aggregate cash obligations and collateral requirements of approximately $1.4$0.7 billion.
Derivatives Accompanied by Financial Asset Transfers
For transfers of financial assets accounted for as a sale by the Company, and for which the Company has retained substantially all of the economic exposure to the transferred asset through a total return swap executed with the same counterparty in contemplation of the initial sale (and still outstanding), the asset amounts derecognized and the gross cash proceeds received as of the date of derecognition were $0.7$2.2 billion and $2.9$1.4 billion as of September 30, 20222023 and December 31, 2021,2022, respectively.
At September 30, 2022,2023, the fair value of these previously derecognized assets was $0.7$2.2 billion. The fair value of the total return swaps as of September 30, 20222023 was $22$3 million recorded as gross derivative assets and $30$52 million recorded as gross derivative liabilities. At December 31, 2021,2022, the fair value of these previously derecognized assets was $2.9$1.4 billion, and the fair value of the total return swaps was $13$27 million recorded as gross derivative assets and $58$32 million recorded as gross derivative liabilities.
The balances for the total return swaps are on a gross basis, before the application of counterparty and cash collateral netting, and are included primarily as equity derivatives in the tabular disclosures in this Note.
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20.22. FAIR VALUE MEASUREMENT
For additional information regarding fair value measurement at Citi, see Note 2425 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
Market Valuation Adjustments
The table below summarizes the credit valuation adjustments (CVA) and funding valuation adjustments (FVA) applied to the fair value of derivative instruments at September 30, 2022 and December 31, 2021:
| | | | | | | | |
| | Credit and funding
valuation adjustments
contra-liability (contra-asset) |
| In millions of dollars | September 30,
2022 | December 31,
2021 |
| Counterparty CVA | $ | (1,020) | | $ | (705) | |
| Asset FVA | (718) | | (433) | |
| Citigroup (own credit) CVA | 775 | | 379 | |
| Liability FVA | 257 | | 110 | |
| Total CVA and FVA—derivative instruments | $ | (706) | | $ | (649) | |
The table below summarizes pretax gains (losses) related to changes in CVA on derivative instruments, net of hedges, FVA on derivatives and debt valuation adjustments (DVA) on Citi’s own fair value option (FVO) liabilities for the periods indicated:
| | | | | | | | | | | | | | |
| | Credit/funding/debt valuation
adjustments gain (loss) |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | 2022 | 2021 | 2022 | 2021 |
| Counterparty CVA | $ | (10) | | $ | 25 | | $ | (211) | | $ | 68 | |
| Asset FVA | (96) | | (23) | | (247) | | 71 | |
| Own credit CVA | 29 | | 34 | | 327 | | (44) | |
| Liability FVA | 58 | | (63) | | 148 | | (52) | |
| Total CVA and FVA—derivative instruments | $ | (19) | | $ | (27) | | $ | 17 | | $ | 43 | |
DVA related to own FVO liabilities(1) | $ | 1,159 | | $ | (107) | | $ | 4,800 | | $ | (256) | |
| Total CVA, DVA and FVA | $ | 1,140 | | $ | (134) | | $ | 4,817 | | $ | (213) | |
(1) See Notes 1 and 17 to the Consolidated Financial Statements in Citi’s 2021 Form 10-K.
Fair Value Hierarchy
ASC 820-10 specifies a hierarchy of inputs based on whether the inputs are observable or unobservable. Observable inputs are developed using market data and reflect market participant assumptions, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair value hierarchy:
•Level 1: Quoted prices for identical instruments in active markets.
•Level 2: Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs and significant value drivers are observable in the market.
•Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
As required under the fair value hierarchy, the Company considers relevant and observable market inputs in its valuations where possible.
The fair value hierarchy classification approach typically utilizes rules-based and data-driven selection criteria to determine whether an instrument is classified as Level 1, Level 2 or Level 3:
•The determination of whether an instrument is quoted in an active market and therefore considered a Level 1 instrument is based upon the frequency of observed transactions and the quality of independent market data available on the measurement date.
•A Level 2 classification is assigned where there is observability of prices/market inputs to models, or where any unobservable inputs are not significant to the valuation. The determination of whether an input is considered observable is based on the availability of independent market data and its corroboration, for example through observed transactions in the market.
•Otherwise, an instrument is classified as Level 3.
Market Valuation Adjustments
The table below summarizes the credit valuation adjustments (CVA) and funding valuation adjustments (FVA) applied to the fair value of derivative instruments at September 30, 2023 and December 31, 2022:
| | | | | | | | |
| | Credit and funding
valuation adjustments
contra-liability (contra-asset) |
| In millions of dollars | September 30,
2023 | December 31,
2022 |
| Counterparty CVA | $ | (589) | | $ | (816) | |
| Asset FVA | (539) | | (622) | |
| Citigroup (own credit) CVA | 473 | | 607 | |
| Liability FVA | 273 | | 263 | |
| Total CVA and FVA—derivative instruments | $ | (382) | | $ | (568) | |
The table below summarizes pretax gains (losses) related to changes in CVA on derivative instruments, net of hedges, FVA on derivatives and debt valuation adjustments (DVA) on Citi’s own fair value option (FVO) liabilities for the periods indicated:
| | | | | | | | | | | | | | |
| | Credit/funding/debt valuation
adjustments gain (loss) |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | 2023 | 2022 | 2023 | 2022 |
| Counterparty CVA | $ | 35 | | $ | (10) | | $ | 5 | | $ | (211) | |
| Asset FVA | (17) | | (96) | | 77 | | (247) | |
| Own credit CVA | 14 | | 29 | | (134) | | 327 | |
| Liability FVA | 38 | | 58 | | (5) | | 148 | |
| Total CVA and FVA—derivative instruments | $ | 70 | | $ | (19) | | $ | (57) | | $ | 17 | |
DVA related to own FVO liabilities(1) | $ | 395 | | $ | 1,159 | | $ | (875) | | $ | 4,800 | |
| Total CVA, DVA and FVA | $ | 465 | | $ | 1,140 | | $ | (932) | | $ | 4,817 | |
(1) See Note 20 to the Consolidated Financial Statements in Citi’s 2022 Form 10-K.
Items Measured at Fair Value on a Recurring Basis
The following tables present for each of the fair value hierarchy levels the Company’s assets and liabilities that are measured at fair value on a recurring basis at September 30, 20222023 and December 31, 2021.2022. The Company may hedge
positions that have been classified in the Level 3 category with other financial instruments (hedging instruments) that may be classified as Level 3, but also with financial instruments classified as Level 1 or Level 2. The effects of these hedges are presented gross in the following tables:
Fair Value Levels
| | In millions of dollars at September 30, 2022 | Level 1 | Level 2 | Level 3 | Gross
inventory | Netting(1) | Net
balance | |
| In millions of dollars at September 30, 2023 | | In millions of dollars at September 30, 2023 | Level 1 | Level 2 | Level 3 | Gross
inventory | Netting(1) | Net
balance |
| Assets | Assets | | | Assets | | |
| Securities borrowed and purchased under agreements to resell | Securities borrowed and purchased under agreements to resell | $ | — | | $ | 326,645 | | $ | 141 | | $ | 326,786 | | $ | (97,767) | | $ | 229,019 | | Securities borrowed and purchased under agreements to resell | $ | — | | $ | 440,315 | | $ | 135 | | $ | 440,450 | | $ | (234,299) | | $ | 206,151 | |
| Trading non-derivative assets | Trading non-derivative assets | | | Trading non-derivative assets | | |
| Trading mortgage-backed securities | Trading mortgage-backed securities | | | Trading mortgage-backed securities | | |
| U.S. government-sponsored agency guaranteed | U.S. government-sponsored agency guaranteed | — | | 30,517 | | 672 | | 31,189 | | — | | 31,189 | | U.S. government-sponsored agency guaranteed | — | | 67,525 | | 538 | | 68,063 | | — | | 68,063 | |
| Residential | Residential | 1 | | 853 | | 142 | | 996 | | — | | 996 | | Residential | 1 | | 2,128 | | 165 | | 2,294 | | — | | 2,294 | |
| Commercial | Commercial | — | | 817 | | 116 | | 933 | | — | | 933 | | Commercial | — | | 505 | | 205 | | 710 | | — | | 710 | |
| Total trading mortgage-backed securities | Total trading mortgage-backed securities | $ | 1 | | $ | 32,187 | | $ | 930 | | $ | 33,118 | | $ | — | | $ | 33,118 | | Total trading mortgage-backed securities | $ | 1 | | $ | 70,158 | | $ | 908 | | $ | 71,067 | | $ | — | | $ | 71,067 | |
| U.S. Treasury and federal agency securities | U.S. Treasury and federal agency securities | $ | 77,742 | | $ | 2,740 | | $ | — | | $ | 80,482 | | $ | — | | $ | 80,482 | | U.S. Treasury and federal agency securities | $ | 90,944 | | $ | 1,717 | | $ | — | | $ | 92,661 | | $ | — | | $ | 92,661 | |
| State and municipal | State and municipal | — | | 2,068 | | 22 | | 2,090 | | — | | 2,090 | | State and municipal | — | | 1,903 | | 3 | | 1,906 | | — | | 1,906 | |
| Foreign government | Foreign government | 41,515 | | 27,530 | | 380 | | 69,425 | | — | | 69,425 | | Foreign government | 45,369 | | 31,687 | | 69 | | 77,125 | | — | | 77,125 | |
| Corporate | Corporate | 1,530 | | 14,164 | | 460 | | 16,154 | | — | | 16,154 | | Corporate | 1,363 | | 18,367 | | 764 | | 20,494 | | — | | 20,494 | |
| Equity securities | Equity securities | 33,153 | | 7,740 | | 187 | | 41,080 | | — | | 41,080 | | Equity securities | 46,513 | | 10,604 | | 263 | | 57,380 | | — | | 57,380 | |
| Asset-backed securities | Asset-backed securities | — | | 1,557 | | 612 | | 2,169 | | — | | 2,169 | | Asset-backed securities | — | | 1,805 | | 575 | | 2,380 | | — | | 2,380 | |
Other trading assets(2) | Other trading assets(2) | 1 | | 15,378 | | 679 | | 16,058 | | — | | 16,058 | | Other trading assets(2) | 64 | | 13,764 | | 973 | | 14,801 | | — | | 14,801 | |
| Total trading non-derivative assets | Total trading non-derivative assets | $ | 153,942 | | $ | 103,364 | | $ | 3,270 | | $ | 260,576 | | $ | — | | $ | 260,576 | | Total trading non-derivative assets | $ | 184,254 | | $ | 150,005 | | $ | 3,555 | | $ | 337,814 | | $ | — | | $ | 337,814 | |
| Trading derivatives | Trading derivatives | | | Trading derivatives | | |
| Interest rate contracts | Interest rate contracts | $ | 730 | | $ | 186,092 | | $ | 3,761 | | $ | 190,583 | | | | Interest rate contracts | $ | 129 | | $ | 176,243 | | $ | 2,746 | | $ | 179,118 | | | |
| Foreign exchange contracts | Foreign exchange contracts | — | | 252,468 | | 858 | | 253,326 | | | | Foreign exchange contracts | — | | 172,886 | | 1,431 | | 174,317 | | | |
| Equity contracts | Equity contracts | 57 | | 58,446 | | 2,353 | | 60,856 | | | | Equity contracts | 25 | | 41,817 | | 1,211 | | 43,053 | | | |
| Commodity contracts | Commodity contracts | — | | 47,989 | | 1,406 | | 49,395 | | | | Commodity contracts | — | | 15,013 | | 1,274 | | 16,287 | | | |
| Credit derivatives | Credit derivatives | — | | 8,802 | | 1,423 | | 10,225 | | | | Credit derivatives | — | | 11,803 | | 839 | | 12,642 | | | |
| Total trading derivatives—before netting and collateral | Total trading derivatives—before netting and collateral | $ | 787 | | $ | 553,797 | | $ | 9,801 | | $ | 564,385 | | | | Total trading derivatives—before netting and collateral | $ | 154 | | $ | 417,762 | | $ | 7,501 | | $ | 425,417 | | | |
| Netting agreements | Netting agreements | | $ | (431,992) | | | Netting agreements | | $ | (333,991) | | |
| Netting of cash collateral received | Netting of cash collateral received | | (34,709) | | | Netting of cash collateral received | | (22,872) | | |
| Total trading derivatives—after netting and collateral | Total trading derivatives—after netting and collateral | $ | 787 | | $ | 553,797 | | $ | 9,801 | | $ | 564,385 | | $ | (466,701) | | $ | 97,684 | | Total trading derivatives—after netting and collateral | $ | 154 | | $ | 417,762 | | $ | 7,501 | | $ | 425,417 | | $ | (356,863) | | $ | 68,554 | |
| Investments | Investments | | | Investments | | |
| Mortgage-backed securities | Mortgage-backed securities | | | Mortgage-backed securities | | |
| U.S. government-sponsored agency guaranteed | U.S. government-sponsored agency guaranteed | $ | — | | $ | 11,305 | | $ | 26 | | $ | 11,331 | | $ | — | | $ | 11,331 | | U.S. government-sponsored agency guaranteed | $ | — | | $ | 19,786 | | $ | 29 | | $ | 19,815 | | $ | — | | $ | 19,815 | |
| Residential | Residential | — | | 437 | | 39 | | 476 | | — | | 476 | | Residential | — | | 283 | | 24 | | 307 | | — | | 307 | |
| Commercial | Commercial | — | | 4 | | — | | 4 | | — | | 4 | | Commercial | — | | 1 | | — | | 1 | | — | | 1 | |
| Total investment mortgage-backed securities | Total investment mortgage-backed securities | $ | — | | $ | 11,746 | | $ | 65 | | $ | 11,811 | | $ | — | | $ | 11,811 | | Total investment mortgage-backed securities | $ | — | | $ | 20,070 | | $ | 53 | | $ | 20,123 | | $ | — | | $ | 20,123 | |
| U.S. Treasury and federal agency securities | U.S. Treasury and federal agency securities | $ | 89,618 | | $ | 45 | | $ | — | | $ | 89,663 | | $ | — | | $ | 89,663 | | U.S. Treasury and federal agency securities | $ | 80,949 | | $ | 299 | | $ | 20 | | $ | 81,268 | | $ | — | | $ | 81,268 | |
| State and municipal | State and municipal | — | | 1,578 | | 575 | | 2,153 | | — | | 2,153 | | State and municipal | — | | 1,538 | | 493 | | 2,031 | | — | | 2,031 | |
| Foreign government | Foreign government | 51,713 | | 66,398 | | 860 | | 118,971 | | — | | 118,971 | | Foreign government | 57,970 | | 67,230 | | 196 | | 125,396 | | — | | 125,396 | |
| Corporate | Corporate | 2,437 | | 2,739 | | 337 | | 5,513 | | — | | 5,513 | | Corporate | 2,835 | | 2,269 | | 289 | | 5,393 | | — | | 5,393 | |
| Marketable equity securities | Marketable equity securities | 233 | | 188 | | 10 | | 431 | | — | | 431 | | Marketable equity securities | 186 | | 86 | | 11 | | 283 | | — | | 283 | |
| Asset-backed securities | Asset-backed securities | — | | 274 | | 2 | | 276 | | — | | 276 | | Asset-backed securities | — | | 652 | | 30 | | 682 | | — | | 682 | |
| Other debt securities | Other debt securities | — | | 3,756 | | — | | 3,756 | | — | | 3,756 | | Other debt securities | — | | 6,890 | | — | | 6,890 | | — | | 6,890 | |
Non-marketable equity securities(3) | Non-marketable equity securities(3) | — | | 9 | | 384 | | 393 | | — | | 393 | | Non-marketable equity securities(3) | — | | — | | 431 | | 431 | | — | | 431 | |
| Total investments | Total investments | $ | 144,001 | | $ | 86,733 | | $ | 2,233 | | $ | 232,967 | | $ | — | | $ | 232,967 | | Total investments | $ | 141,940 | | $ | 99,034 | | $ | 1,523 | | $ | 242,497 | | $ | — | | $ | 242,497 | |
Table continues on the next page.
| | In millions of dollars at September 30, 2022 | Level 1 | Level 2 | Level 3 | Gross
inventory | Netting(1) | Net
balance | |
| In millions of dollars at September 30, 2023 | | In millions of dollars at September 30, 2023 | Level 1 | Level 2 | Level 3 | Gross
inventory | Netting(1) | Net
balance |
| Loans | Loans | $ | — | $ | 3,244 | $ | 635 | $ | 3,879 | | $ | — | | $ | 3,879 | | Loans | $ | — | $ | 7,146 | $ | 265 | $ | 7,411 | | $ | — | | $ | 7,411 | |
| Mortgage servicing rights | Mortgage servicing rights | — | 647 | 647 | | — | | 647 | | Mortgage servicing rights | — | 729 | 729 | | — | | 729 | |
| | Non-trading derivatives and other financial assets measured on a recurring basis | Non-trading derivatives and other financial assets measured on a recurring basis | $ | 3,318 | $ | 6,579 | $ | 50 | $ | 9,947 | | $ | — | | $ | 9,947 | | Non-trading derivatives and other financial assets measured on a recurring basis | $ | 6,990 | $ | 7,496 | $ | 77 | $ | 14,563 | | $ | — | | $ | 14,563 | |
| Total assets | Total assets | $ | 302,048 | $ | 1,080,362 | $ | 16,777 | $ | 1,399,187 | | $ | (564,468) | | $ | 834,719 | | Total assets | $ | 333,338 | $ | 1,121,758 | $ | 13,785 | $ | 1,468,881 | | $ | (591,162) | | $ | 877,719 | |
Total as a percentage of gross assets(4) | Total as a percentage of gross assets(4) | 21.6% | 77.2% | 1.2% | | | Total as a percentage of gross assets(4) | 22.7% | 76.4% | 0.9% | | |
| Liabilities | Liabilities | | | Liabilities | | |
| Interest-bearing deposits | Interest-bearing deposits | $ | — | $ | 2,424 | $ | 16 | $ | 2,440 | | $ | — | | $ | 2,440 | | Interest-bearing deposits | $ | — | $ | 2,567 | $ | 155 | $ | 2,722 | | $ | — | | $ | 2,722 | |
| Securities loaned and sold under agreements to repurchase | Securities loaned and sold under agreements to repurchase | — | 155,912 | 997 | 156,909 | | (83,802) | | 73,107 | | Securities loaned and sold under agreements to repurchase | — | 225,705 | 481 | 226,186 | | (165,524) | | 60,662 | |
| Trading account liabilities | Trading account liabilities | | | Trading account liabilities | | | |
| Securities sold, not yet purchased | Securities sold, not yet purchased | 108,425 | 15,350 | 103 | 123,878 | | — | | 123,878 | | Securities sold, not yet purchased | 96,351 | 13,412 | 88 | 109,851 | | — | | 109,851 | |
| Other trading liabilities | Other trading liabilities | — | 2 | 4 | | — | | 4 | | Other trading liabilities | — | 11 | 1 | 12 | | — | | 12 | |
| Total trading liabilities | $ | 108,425 | $ | 15,352 | $ | 105 | $ | 123,882 | | $ | — | | $ | 123,882 | | |
| Total trading account liabilities | | Total trading account liabilities | $ | 96,351 | $ | 13,423 | $ | 89 | $ | 109,863 | | $ | — | | $ | 109,863 | |
| Trading derivatives | Trading derivatives | | | Trading derivatives | | | |
| Interest rate contracts | Interest rate contracts | $ | 358 | $ | 179,520 | $ | 3,787 | $ | 183,665 | | | | Interest rate contracts | $ | 120 | $ | 168,590 | $ | 4,549 | $ | 173,259 | | | |
| Foreign exchange contracts | Foreign exchange contracts | — | 248,737 | 581 | 249,318 | | | | Foreign exchange contracts | — | 166,133 | 818 | 166,951 | | | |
| Equity contracts | Equity contracts | 84 | 61,530 | 2,292 | 63,906 | | | | Equity contracts | 35 | 44,118 | 2,346 | 46,499 | | | |
| Commodity contracts | Commodity contracts | — | 41,377 | 1,153 | 42,530 | | | | Commodity contracts | — | 16,035 | 1,225 | 17,260 | | | |
| Credit derivatives | Credit derivatives | — | 7,806 | 1,536 | 9,342 | | | | Credit derivatives | — | 10,311 | 766 | 11,077 | | | |
| Total trading derivatives—before netting and collateral | Total trading derivatives—before netting and collateral | $ | 442 | $ | 538,970 | $ | 9,349 | $ | 548,761 | | | | Total trading derivatives—before netting and collateral | $ | 155 | $ | 405,187 | $ | 9,704 | $ | 415,046 | | | |
| Netting agreements | Netting agreements | | $ | (431,992) | | | Netting agreements | | $ | (333,991) | | |
| Netting of cash collateral paid | Netting of cash collateral paid | | (44,172) | | | Netting of cash collateral paid | | (26,294) | | |
| Total trading derivatives—after netting and collateral | Total trading derivatives—after netting and collateral | $ | 442 | $ | 538,970 | $ | 9,349 | $ | 548,761 | | $ | (476,164) | | $ | 72,597 | | Total trading derivatives—after netting and collateral | $ | 155 | $ | 405,187 | $ | 9,704 | $ | 415,046 | | $ | (360,285) | | $ | 54,761 | |
| Short-term borrowings | Short-term borrowings | $ | — | $ | 6,534 | $ | 35 | $ | 6,569 | | $ | — | | $ | 6,569 | | Short-term borrowings | $ | — | $ | 6,014 | $ | 456 | $ | 6,470 | | $ | — | | $ | 6,470 | |
| Long-term debt | Long-term debt | — | 60,115 | 31,710 | 91,825 | | — | | 91,825 | | Long-term debt | — | 76,979 | 35,650 | 112,629 | | — | | 112,629 | |
| | Total non-trading derivatives and other financial liabilities measured on a recurring basis | Total non-trading derivatives and other financial liabilities measured on a recurring basis | $ | 3,064 | $ | 136 | $ | 13 | $ | 3,213 | | $ | — | | $ | 3,213 | | Total non-trading derivatives and other financial liabilities measured on a recurring basis | $ | 7,111 | $ | 177 | $ | 28 | $ | 7,316 | | $ | — | | $ | 7,316 | |
| Total liabilities | Total liabilities | $ | 111,931 | $ | 779,443 | $ | 42,225 | $ | 933,599 | | $ | (559,966) | | $ | 373,633 | | Total liabilities | $ | 103,617 | $ | 730,052 | $ | 46,563 | $ | 880,232 | | $ | (525,809) | | $ | 354,423 | |
Total as a percentage of gross liabilities(4) | Total as a percentage of gross liabilities(4) | 12.0 | % | 83.5 | % | 4.5 | % | | | Total as a percentage of gross liabilities(4) | 11.8 | % | 82.9 | % | 5.3 | % | | |
(1)Represents netting of (i) the amounts due under securities purchased under agreements to resell and the amounts owed under securities sold under agreements to repurchase and (ii) derivative exposures covered by a qualifying master netting agreement and cash collateral offsetting.
(2)Includes positions related to investments in unallocated precious metals, as discussed in Note 21.23. Also includes physical commodities accounted for at the lower of cost or fair value and unfunded credit products.
(3)Amounts exclude $0.1 billion$24 million of investments measured at net asset value (NAV) in accordance with ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).
(4)Because the amount of the cash collateral paid/received has not been allocated to the Level 1, 2 and 3 subtotals, these percentages are calculated based on total assets and liabilities measured at fair value on a recurring basis, excluding the cash collateral paid/received on derivatives.
Fair Value Levels
| | In millions of dollars at December 31, 2021 | Level 1 | Level 2 | Level 3 | Gross
inventory | Netting(1) | Net
balance | |
| In millions of dollars at December 31, 2022 | | In millions of dollars at December 31, 2022 | Level 1 | Level 2 | Level 3 | Gross
inventory | Netting(1) | Net
balance |
| Assets | Assets | | | Assets | | |
| Securities borrowed and purchased under agreements to resell | Securities borrowed and purchased under agreements to resell | $ | — | | $ | 342,030 | | $ | 231 | | $ | 342,261 | | $ | (125,795) | | $ | 216,466 | | Securities borrowed and purchased under agreements to resell | $ | — | | $ | 350,145 | | $ | 149 | | $ | 350,294 | | $ | (110,767) | | $ | 239,527 | |
| Trading non-derivative assets | Trading non-derivative assets | | | Trading non-derivative assets | | |
| Trading mortgage-backed securities | Trading mortgage-backed securities | | | Trading mortgage-backed securities | | |
| U.S. government-sponsored agency guaranteed | U.S. government-sponsored agency guaranteed | — | | 34,534 | | 496 | | 35,030 | | — | | 35,030 | | U.S. government-sponsored agency guaranteed | — | | 34,878 | | 600 | | 35,478 | | — | | 35,478 | |
| Residential | Residential | 1 | | 643 | | 104 | | 748 | | — | | 748 | | Residential | 1 | | 1,821 | | 166 | | 1,988 | | — | | 1,988 | |
| Commercial | Commercial | — | | 778 | | 81 | | 859 | | — | | 859 | | Commercial | — | | 798 | | 145 | | 943 | | — | | 943 | |
| Total trading mortgage-backed securities | Total trading mortgage-backed securities | $ | 1 | | $ | 35,955 | | $ | 681 | | $ | 36,637 | | $ | — | | $ | 36,637 | | Total trading mortgage-backed securities | $ | 1 | | $ | 37,497 | | $ | 911 | | $ | 38,409 | | $ | — | | $ | 38,409 | |
| U.S. Treasury and federal agency securities | U.S. Treasury and federal agency securities | $ | 44,900 | | $ | 3,230 | | $ | 4 | | $ | 48,134 | | $ | — | | $ | 48,134 | | U.S. Treasury and federal agency securities | $ | 63,067 | | $ | 4,513 | | $ | 1 | | $ | 67,581 | | $ | — | | $ | 67,581 | |
| State and municipal | State and municipal | — | | 1,995 | | 37 | | 2,032 | | — | | 2,032 | | State and municipal | — | | 2,256 | | 7 | | 2,263 | | — | | 2,263 | |
| Foreign government | Foreign government | 39,176 | | 31,485 | | 23 | | 70,684 | | — | | 70,684 | | Foreign government | 38,383 | | 25,850 | | 119 | | 64,352 | | — | | 64,352 | |
| Corporate | Corporate | 1,544 | | 16,156 | | 412 | | 18,112 | | — | | 18,112 | | Corporate | 1,593 | | 11,955 | | 394 | | 13,942 | | — | | 13,942 | |
| Equity securities | Equity securities | 53,833 | | 10,047 | | 174 | | 64,054 | | — | | 64,054 | | Equity securities | 43,990 | | 10,179 | | 192 | | 54,361 | | — | | 54,361 | |
| Asset-backed securities | Asset-backed securities | — | | 981 | | 613 | | 1,594 | | — | | 1,594 | | Asset-backed securities | — | | 1,597 | | 668 | | 2,265 | | — | | 2,265 | |
Other trading assets(2) | Other trading assets(2) | — | | 20,346 | | 576 | | 20,922 | | — | | 20,922 | | Other trading assets(2) | 24 | | 14,963 | | 648 | | 15,635 | | — | | 15,635 | |
| Total trading non-derivative assets | Total trading non-derivative assets | $ | 139,454 | | $ | 120,195 | | $ | 2,520 | | $ | 262,169 | | $ | — | | $ | 262,169 | | Total trading non-derivative assets | $ | 147,058 | | $ | 108,810 | | $ | 2,940 | | $ | 258,808 | | $ | — | | $ | 258,808 | |
| Trading derivatives | Trading derivatives | | | Trading derivatives | | |
| Interest rate contracts | Interest rate contracts | $ | 90 | | $ | 161,500 | | $ | 3,898 | | $ | 165,488 | | | | Interest rate contracts | $ | 297 | | $ | 174,156 | | $ | 3,751 | | $ | 178,204 | | | |
| Foreign exchange contracts | Foreign exchange contracts | — | | 134,912 | | 637 | | 135,549 | | | | Foreign exchange contracts | — | | 186,897 | | 766 | | 187,663 | | | |
| Equity contracts | Equity contracts | 41 | | 43,904 | | 1,307 | | 45,252 | | | | Equity contracts | 20 | | 40,683 | | 1,704 | | 42,407 | | | |
| Commodity contracts | Commodity contracts | — | | 28,547 | | 1,797 | | 30,344 | | | | Commodity contracts | — | | 26,823 | | 1,501 | | 28,324 | | | |
| Credit derivatives | Credit derivatives | — | | 9,299 | | 919 | | 10,218 | | | | Credit derivatives | — | | 7,484 | | 905 | | 8,389 | | | |
| Total trading derivatives—before netting and collateral | Total trading derivatives—before netting and collateral | $ | 131 | | $ | 378,162 | | $ | 8,558 | | $ | 386,851 | | | | Total trading derivatives—before netting and collateral | $ | 317 | | $ | 436,043 | | $ | 8,627 | | $ | 444,987 | | | |
| Netting agreements | Netting agreements | | $ | (292,628) | | | Netting agreements | | $ | (346,545) | | |
Netting of cash collateral received(3) | Netting of cash collateral received(3) | | (24,447) | | | Netting of cash collateral received(3) | | (23,136) | | |
| Total trading derivatives—after netting and collateral | Total trading derivatives—after netting and collateral | $ | 131 | | $ | 378,162 | | $ | 8,558 | | $ | 386,851 | | $ | (317,075) | | $ | 69,776 | | Total trading derivatives—after netting and collateral | $ | 317 | | $ | 436,043 | | $ | 8,627 | | $ | 444,987 | | $ | (369,681) | | $ | 75,306 | |
| Investments | Investments | | | Investments | | |
| Mortgage-backed securities | Mortgage-backed securities | | | Mortgage-backed securities | | |
| U.S. government-sponsored agency guaranteed | U.S. government-sponsored agency guaranteed | $ | — | | $ | 33,165 | | $ | 51 | | $ | 33,216 | | $ | — | | $ | 33,216 | | U.S. government-sponsored agency guaranteed | $ | — | | $ | 11,232 | | $ | 30 | | $ | 11,262 | | $ | — | | $ | 11,262 | |
| Residential | Residential | — | | 286 | | 94 | | 380 | | — | | 380 | | Residential | — | | 444 | | 41 | | 485 | | — | | 485 | |
| Commercial | Commercial | — | | 25 | | — | | 25 | | — | | 25 | | Commercial | — | | 2 | | — | | 2 | | — | | 2 | |
| Total investment mortgage-backed securities | Total investment mortgage-backed securities | $ | — | | $ | 33,476 | | $ | 145 | | $ | 33,621 | | $ | — | | $ | 33,621 | | Total investment mortgage-backed securities | $ | — | | $ | 11,678 | | $ | 71 | | $ | 11,749 | | $ | — | | $ | 11,749 | |
| U.S. Treasury and federal agency securities | U.S. Treasury and federal agency securities | $ | 122,271 | | $ | 168 | | $ | 1 | | $ | 122,440 | | $ | — | | $ | 122,440 | | U.S. Treasury and federal agency securities | $ | 91,851 | | $ | 439 | | $ | — | | $ | 92,290 | | $ | — | | $ | 92,290 | |
| State and municipal | State and municipal | — | | 1,849 | | 772 | | 2,621 | | — | | 2,621 | | State and municipal | — | | 1,637 | | 586 | | 2,223 | | — | | 2,223 | |
| Foreign government | Foreign government | 56,842 | | 61,112 | | 786 | | 118,740 | | — | | 118,740 | | Foreign government | 58,419 | | 74,250 | | 608 | | 133,277 | | — | | 133,277 | |
| Corporate | Corporate | 2,861 | | 2,871 | | 188 | | 5,920 | | — | | 5,920 | | Corporate | 2,230 | | 2,343 | | 343 | | 4,916 | | — | | 4,916 | |
| Marketable equity securities | Marketable equity securities | 350 | | 177 | | 16 | | 543 | | — | | 543 | | Marketable equity securities | 254 | | 165 | | 10 | | 429 | | — | | 429 | |
| Asset-backed securities | Asset-backed securities | — | | 300 | | 3 | | 303 | | — | | 303 | | Asset-backed securities | — | | 1,029 | | 1 | | 1,030 | | — | | 1,030 | |
| Other debt securities | Other debt securities | — | | 4,877 | | — | | 4,877 | | — | | 4,877 | | Other debt securities | — | | 4,194 | | — | | 4,194 | | — | | 4,194 | |
Non-marketable equity securities(4) | Non-marketable equity securities(4) | — | | 28 | | 316 | | 344 | | — | | 344 | | Non-marketable equity securities(4) | — | | 9 | | 430 | | 439 | | — | | 439 | |
| Total investments | Total investments | $ | 182,324 | | $ | 104,858 | | $ | 2,227 | | $ | 289,409 | | $ | — | | $ | 289,409 | | Total investments | $ | 152,754 | | $ | 95,744 | | $ | 2,049 | | $ | 250,547 | | $ | — | | $ | 250,547 | |
Table continues on the next page.
| | In millions of dollars at December 31, 2021 | Level 1 | Level 2 | Level 3 | Gross
inventory | Netting(1) | Net
balance | |
| In millions of dollars at December 31, 2022 | | In millions of dollars at December 31, 2022 | Level 1 | Level 2 | Level 3 | Gross
inventory | Netting(1) | Net
balance |
| Loans | Loans | $ | — | $ | 5,371 | $ | 711 | $ | 6,082 | | $ | — | | $ | 6,082 | | Loans | $ | — | $ | 3,999 | $ | 1,361 | $ | 5,360 | | $ | — | | $ | 5,360 | |
| Mortgage servicing rights | Mortgage servicing rights | — | 404 | 404 | | — | | 404 | | Mortgage servicing rights | — | 665 | 665 | | — | | 665 | |
| | Non-trading derivatives and other financial assets measured on a recurring basis | Non-trading derivatives and other financial assets measured on a recurring basis | $ | 4,075 | $ | 8,194 | $ | 73 | $ | 12,342 | | $ | — | | $ | 12,342 | | Non-trading derivatives and other financial assets measured on a recurring basis | $ | 4,310 | $ | 6,291 | $ | 57 | $ | 10,658 | | $ | — | | $ | 10,658 | |
| Total assets | Total assets | $ | 325,984 | $ | 958,810 | $ | 14,724 | $ | 1,299,518 | | $ | (442,870) | | $ | 856,648 | | Total assets | $ | 304,439 | $ | 1,001,032 | $ | 15,848 | $ | 1,321,319 | | $ | (480,448) | | $ | 840,871 | |
Total as a percentage of gross assets(5) | Total as a percentage of gross assets(5) | 25.1% | 73.8% | 1.1% | | | Total as a percentage of gross assets(5) | 23.0% | 75.8% | 1.2% | | |
| Liabilities | Liabilities | | | Liabilities | | | |
| Interest-bearing deposits | Interest-bearing deposits | $ | — | $ | 1,483 | $ | 183 | $ | 1,666 | | $ | — | | $ | 1,666 | | Interest-bearing deposits | $ | — | $ | 1,860 | $ | 15 | $ | 1,875 | | $ | — | | $ | 1,875 | |
| Securities loaned and sold under agreements to repurchase | Securities loaned and sold under agreements to repurchase | — | 174,318 | 643 | 174,961 | | (118,267) | | 56,694 | | Securities loaned and sold under agreements to repurchase | — | 155,822 | 1,031 | 156,853 | | (85,967) | | 70,886 | |
| Trading account liabilities | Trading account liabilities | | | Trading account liabilities | | | |
| Securities sold, not yet purchased | Securities sold, not yet purchased | 82,675 | 23,268 | 65 | 106,008 | | — | | 106,008 | | Securities sold, not yet purchased | 97,559 | 13,111 | 50 | 110,720 | | — | | 110,720 | |
| Other trading liabilities | Other trading liabilities | — | 5 | — | 5 | | — | | 5 | | Other trading liabilities | — | 8 | 3 | 11 | | — | | 11 | |
| Total trading liabilities | $ | 82,675 | $ | 23,273 | $ | 65 | $ | 106,013 | | $ | — | | $ | 106,013 | | |
| Total trading account liabilities | | Total trading account liabilities | $ | 97,559 | $ | 13,119 | $ | 53 | $ | 110,731 | | $ | — | | $ | 110,731 | |
| Trading derivatives | Trading derivatives | | | Trading derivatives | | | |
| Interest rate contracts | Interest rate contracts | $ | 56 | $ | 147,846 | $ | 2,172 | $ | 150,074 | | | | Interest rate contracts | $ | 175 | $ | 169,049 | $ | 3,396 | $ | 172,620 | | | |
| Foreign exchange contracts | Foreign exchange contracts | — | 134,572 | 726 | 135,298 | | | | Foreign exchange contracts | — | 185,279 | 716 | 185,995 | | | |
| Equity contracts | Equity contracts | 60 | 46,177 | 3,447 | 49,684 | | | | Equity contracts | 70 | 40,905 | 2,808 | 43,783 | | | |
| Commodity contracts | Commodity contracts | — | 30,004 | 1,375 | 31,379 | | | | Commodity contracts | 2 | 25,093 | 1,223 | 26,318 | | | |
| Credit derivatives | Credit derivatives | — | 10,065 | 950 | 11,015 | | | | Credit derivatives | — | 6,715 | 1,062 | 7,777 | | | |
| Total trading derivatives—before netting and collateral | Total trading derivatives—before netting and collateral | $ | 116 | $ | 368,664 | $ | 8,670 | $ | 377,450 | | | | Total trading derivatives—before netting and collateral | $ | 247 | $ | 427,041 | $ | 9,205 | $ | 436,493 | | | |
| Netting agreements | Netting agreements | | $ | (292,628) | | | Netting agreements | | | $ | (346,545) | | |
Netting of cash collateral paid(3) | Netting of cash collateral paid(3) | | (29,306) | | | Netting of cash collateral paid(3) | | | (30,032) | | |
| Total trading derivatives—after netting and collateral | Total trading derivatives—after netting and collateral | $ | 116 | $ | 368,664 | $ | 8,670 | $ | 377,450 | | $ | (321,934) | | $ | 55,516 | | Total trading derivatives—after netting and collateral | $ | 247 | $ | 427,041 | $ | 9,205 | $ | 436,493 | | $ | (376,577) | | $ | 59,916 | |
| Short-term borrowings | Short-term borrowings | $ | — | $ | 7,253 | $ | 105 | $ | 7,358 | | $ | — | | $ | 7,358 | | Short-term borrowings | $ | — | $ | 6,184 | $ | 38 | $ | 6,222 | | $ | — | | $ | 6,222 | |
| Long-term debt | Long-term debt | — | 57,100 | 25,509 | 82,609 | | — | | 82,609 | | Long-term debt | — | 69,878 | 36,117 | 105,995 | | — | | 105,995 | |
| | Total non-trading derivatives and other financial liabilities measured on a recurring basis | Total non-trading derivatives and other financial liabilities measured on a recurring basis | $ | 3,574 | $ | — | $ | 1 | $ | 3,575 | | $ | — | | $ | 3,575 | | Total non-trading derivatives and other financial liabilities measured on a recurring basis | $ | 4,197 | $ | 240 | $ | 2 | $ | 4,439 | | $ | — | | $ | 4,439 | |
| Total liabilities | Total liabilities | $ | 86,365 | $ | 632,091 | $ | 35,176 | $ | 753,632 | | $ | (440,201) | | $ | 313,431 | | Total liabilities | $ | 102,003 | $ | 674,144 | $ | 46,461 | $ | 822,608 | | $ | (462,544) | | $ | 360,064 | |
Total as a percentage of gross liabilities(5) | Total as a percentage of gross liabilities(5) | 11.5 | % | 83.9 | % | 4.7 | % | | | Total as a percentage of gross liabilities(5) | 12.4 | % | 82.0 | % | 5.6 | % | | |
(1)Represents netting of (i) the amounts due under securities purchased under agreements to resell and the amounts owed under securities sold under agreements to repurchase and (ii) derivative exposures covered by a qualifying master netting agreement and cash collateral offsetting.
(2)Includes positions related to investments in unallocated precious metals, as discussed in Note 21.23. Also includes physical commodities accounted for at the lower of cost or fair value and unfunded credit products.
(3)Represents the netting of cash collateral paid and received by counterparties under enforceable credit support agreements. Substantially all netting of cash collateral received and paid is against OTC derivative assets and liabilities, respectively.
(4)Amounts exclude $0.1 billion$27 million of investments measured at NAV in accordance with ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).
(5)Because the amount of the cash collateral paid/received has not been allocated to the Level 1, 2 and 3 subtotals, these percentages are calculated based on total assets and liabilities measured at fair value on a recurring basis, excluding the cash collateral paid/received on derivatives.
Changes in Level 3 Fair Value Category
The following tables present the changes in the Level 3 fair value category for the three and nine months ended September 30, 20222023 and 2021.2022. The gains and losses presented below include changes in the fair value related to both observable and unobservable inputs.
The Company often hedges positions with offsetting positions that are classified in a different level. For example,
the gains and losses for assets and liabilities in the Level 3 category presented in the tables below do not reflect the effect of offsetting losses and gains on hedging instruments that may be classified in the Level 1 or Level 2 categories. In addition, the Company hedges items classified in the Level 3 category with instruments also classified in Level 3 of the fair value hierarchy. The hedged items and related hedges are presented gross in the following tables:
Level 3 Fair Value Rollforward
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net realized/unrealized gains (losses) incl. in(1) | Transfers | | | | | | Unrealized
gains (losses)
still held(3) |
| In millions of dollars | Jun. 30, 2023 | Principal
transactions | Other(1)(2) | into
Level 3 | out of
Level 3 | Purchases | Issuances | Sales | Settlements | Sept. 30, 2023 |
| Assets | | | | | | | | | | | |
| Securities borrowed and purchased under agreements to resell | $ | 140 | | $ | 1 | | $ | — | | $ | — | | $ | — | | $ | 126 | | $ | — | | $ | — | | $ | (132) | | $ | 135 | | $ | 9 | |
| Trading non-derivative assets | | | | | | | | | | | |
| Trading mortgage-backed securities | | | | | | | | | | | |
| U.S. government-sponsored agency guaranteed | 659 | | (21) | | — | | 93 | | (155) | | 92 | | — | | (130) | | — | | 538 | | (14) | |
| Residential | 145 | | (1) | | — | | 31 | | (3) | | 52 | | — | | (59) | | — | | 165 | | (3) | |
| Commercial | 182 | | (8) | | — | | 59 | | (25) | | 26 | | — | | (29) | | — | | 205 | | (8) | |
| Total trading mortgage-backed securities | $ | 986 | | $ | (30) | | $ | — | | $ | 183 | | $ | (183) | | $ | 170 | | $ | — | | $ | (218) | | $ | — | | $ | 908 | | $ | (25) | |
| U.S. Treasury and federal agency securities | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
| State and municipal | 3 | | — | | — | | — | | — | | — | | — | | — | | — | | 3 | | — | |
| Foreign government | 81 | | (23) | | — | | — | | (31) | | 70 | | — | | (28) | | — | | 69 | | 19 | |
| Corporate | 581 | | 224 | | — | | 38 | | (303) | | 624 | | — | | (400) | | — | | 764 | | (232) | |
| Marketable equity securities | 285 | | 2 | | — | | 16 | | (10) | | 28 | | — | | (58) | | — | | 263 | | 1 | |
| Asset-backed securities | 539 | | 6 | | — | | 15 | | (39) | | 297 | | — | | (243) | | — | | 575 | | 2 | |
| Other trading assets | 1,478 | | (332) | | — | | 279 | | (198) | | 260 | | — | | (514) | | — | | 973 | | (114) | |
| Total trading non-derivative assets | $ | 3,953 | | $ | (153) | | $ | — | | $ | 531 | | $ | (764) | | $ | 1,449 | | $ | — | | $ | (1,461) | | $ | — | | $ | 3,555 | | $ | (349) | |
Trading derivatives, net(4) | | | | | | | | | | | |
| Interest rate contracts | $ | (1,962) | | $ | (474) | | $ | — | | $ | (18) | | $ | 298 | | $ | 51 | | $ | — | | $ | 49 | | $ | 253 | | $ | (1,803) | | $ | (637) | |
| Foreign exchange contracts | 700 | | 158 | | — | | 1 | | (24) | | 50 | | — | | (8) | | (264) | | 613 | | 159 | |
| Equity contracts | (1,563) | | 641 | | — | | 128 | | (145) | | (346) | | — | | (21) | | 171 | | (1,135) | | 212 | |
| Commodity contracts | 330 | | 222 | | — | | 96 | | (149) | | (389) | | — | | (2) | | (59) | | 49 | | 120 | |
| Credit derivatives | (155) | | 54 | | — | | 22 | | 81 | | 80 | | — | | — | | (9) | | 73 | | (16) | |
Total trading derivatives, net(4) | $ | (2,650) | | $ | 601 | | $ | — | | $ | 229 | | $ | 61 | | $ | (554) | | $ | — | | $ | 18 | | $ | 92 | | $ | (2,203) | | $ | (162) | |
Table continues on the next page.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net realized/unrealized gains (losses) incl. in(1) | Transfers | | | | | | Unrealized
gains (losses)
still held(3) | | | | | | | | |
| In millions of dollars | Jun. 30, 2023 | Principal
transactions | Other(1)(2) | into
Level 3 | out of
Level 3 | Purchases | Issuances | Sales | Settlements | Sept. 30, 2023 | | | | | | | | |
| Investments | | | | | | | | | | | | | | | | | | | |
| Mortgage-backed securities | | | | | | | | | | | | | | | | | | | |
| U.S. government-sponsored agency guaranteed | $ | 32 | | $ | — | | $ | — | | $ | — | | $ | (3) | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 29 | | $ | — | | | | | | | | | |
| Residential | 25 | | — | | (1) | | — | | — | | — | | — | | — | | — | | 24 | | (1) | | | | | | | | | |
| Commercial | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | | | | | | | | |
| Total investment mortgage-backed securities | $ | 57 | | $ | — | | $ | (1) | | $ | — | | $ | (3) | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 53 | | $ | (1) | | | | | | | | | |
| U.S. Treasury and federal agency securities | $ | 21 | | $ | — | | $ | (1) | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 20 | | $ | — | | | | | | | | | |
| State and municipal | 507 | | — | | (29) | | 1 | | — | | 45 | | — | | (31) | | — | | 493 | | (29) | | | | | | | | | |
| Foreign government | 414 | | — | | (12) | | 2 | | (179) | | 124 | | — | | (153) | | — | | 196 | | 1 | | | | | | | | | |
| Corporate | 290 | | — | | — | | — | | — | | 15 | | — | | (16) | | — | | 289 | | — | | | | | | | | | |
| Marketable equity securities | 13 | | — | | (2) | | — | | — | | — | | — | | — | | — | | 11 | | — | | | | | | | | | |
| Asset-backed securities | 1 | | — | | (1) | | 30 | | — | | — | | — | | — | | — | | 30 | | — | | | | | | | | | |
| Other debt securities | 57 | | — | | 1 | | — | | (58) | | — | | — | | — | | — | | — | | — | | | | | | | | | |
| Non-marketable equity securities | 404 | | — | | 21 | | 6 | | — | | — | | — | | — | | — | | 431 | | (5) | | | | | | | | | |
| Total investments | $ | 1,764 | | $ | — | | $ | (24) | | $ | 39 | | $ | (240) | | $ | 184 | | $ | — | | $ | (200) | | $ | — | | $ | 1,523 | | $ | (34) | | | | | | | | | |
| Loans | $ | 241 | | $ | — | | $ | 15 | | $ | — | | $ | — | | $ | — | | $ | 10 | | $ | — | | $ | (1) | | $ | 265 | | $ | (82) | | | | | | | | | |
| Mortgage servicing rights | 681 | | — | | 42 | | — | | — | | — | | 23 | | — | | (17) | | 729 | | 41 | | | | | | | | | |
| Other financial assets measured at fair value on a recurring basis | 73 | | — | | (22) | | — | | — | | 28 | | — | | (2) | | — | | 77 | | — | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | $ | 26 | | $ | — | | $ | (10) | | $ | 49 | | $ | — | | $ | — | | $ | 70 | | $ | — | | $ | — | | $ | 155 | | $ | (11) | | | | | | | | | |
| Securities loaned and sold under agreements to repurchase | 627 | | (2) | | — | | — | | — | | — | | — | | — | | (148) | | 481 | | 1 | | | | | | | | | |
| Trading account liabilities | | | | | | | | | | | | | | | | | | | |
| Securities sold, not yet purchased | 62 | | — | | — | | 11 | | (3) | | 61 | | — | | — | | (43) | | 88 | | (2) | | | | | | | | | |
| Other trading liabilities | 4 | | — | | — | | 1 | | (2) | | 2 | | — | | — | | (4) | | 1 | | — | | | | | | | | | |
| Short-term borrowings | 296 | | — | | — | | 16 | | (7) | | 1 | | 181 | | — | | (31) | | 456 | | (21) | | | | | | | | | |
| Long-term debt | 37,204 | | 2,816 | | — | | 1,010 | | (1,336) | | — | | 3,027 | | — | | (1,439) | | 35,650 | | 2,112 | | | | | | | | | |
| Other financial liabilities measured on a recurring basis | 23 | | — | | — | | — | | — | | — | | 26 | | (21) | | — | | 28 | | — | | | | | | | | | |
(1)Net realized/unrealized gains (losses) are presented as increase (decrease) to Level 3 assets, and as (increase) decrease to Level 3 liabilities. Changes in fair value of available-for-sale debt securities are recorded in AOCI, unless related to credit impairment, while gains and losses from sales are recorded in Realized gains (losses) from sales of investments in the Consolidated Statement of Income.
(2)Unrealized gains (losses) on MSRs are recorded in Other revenue in the Consolidated Statement of Income.
(3)Represents the amount of total gains or losses for the period, included in earnings (and AOCI for changes in fair value of available-for-sale debt securities and DVA on fair value option liabilities), attributable to the change in fair value relating to assets and liabilities classified as Level 3 that are still held at September 30, 2023.
(4)Total Level 3 derivative assets and liabilities have been netted in these tables for presentation purposes only.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net realized/unrealized gains (losses) incl. in(1) | Transfers | | | | | | Unrealized
gains (losses)
still held(3) |
| In millions of dollars | Dec. 31, 2022 | Principal
transactions | Other(1)(2) | into
Level 3 | out of
Level 3 | Purchases | Issuances | Sales | Settlements | Sept. 30, 2023 |
| Assets | | | | | | | | | | | |
| Securities borrowed and purchased under agreements to resell | $ | 149 | | $ | 4 | | $ | — | | $ | — | | $ | (2) | | $ | 263 | | $ | — | | $ | — | | $ | (279) | | $ | 135 | | $ | 9 | |
| Trading non-derivative assets | | | | | | | | | | | |
| Trading mortgage-backed securities | | | | | | | | | | | |
| U.S. government-sponsored agency guaranteed | 600 | | (31) | | — | | 278 | | (421) | | 462 | | — | | (350) | | — | | 538 | | (34) | |
| Residential | 166 | | (2) | | — | | 92 | | (65) | | 152 | | — | | (178) | | — | | 165 | | (17) | |
| Commercial | 145 | | (23) | | — | | 163 | | (56) | | 76 | | — | | (100) | | — | | 205 | | (19) | |
| Total trading mortgage-backed securities | $ | 911 | | $ | (56) | | $ | — | | $ | 533 | | $ | (542) | | $ | 690 | | $ | — | | $ | (628) | | $ | — | | $ | 908 | | $ | (70) | |
| U.S. Treasury and federal agency securities | $ | 1 | | $ | (1) | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
| State and municipal | 7 | | (3) | | — | | 19 | | — | | — | | — | | (20) | | — | | 3 | | (1) | |
| Foreign government | 119 | | (17) | | — | | 8 | | (58) | | 131 | | — | | (114) | | — | | 69 | | 22 | |
| Corporate | 394 | | 300 | | — | | 248 | | (481) | | 976 | | — | | (673) | | — | | 764 | | (185) | |
| Marketable equity securities | 192 | | 11 | | — | | 42 | | (18) | | 125 | | — | | (89) | | — | | 263 | | 10 | |
| Asset-backed securities | 668 | | 20 | | — | | 94 | | (120) | | 615 | | — | | (702) | | — | | 575 | | 4 | |
| Other trading assets | 648 | | 69 | | — | | 540 | | (274) | | 728 | | — | | (738) | | — | | 973 | | (123) | |
| Total trading non-derivative assets | $ | 2,940 | | $ | 323 | | $ | — | | $ | 1,484 | | $ | (1,493) | | $ | 3,265 | | $ | — | | $ | (2,964) | | $ | — | | $ | 3,555 | | $ | (343) | |
Trading derivatives, net(4) | | | | | | | | | | | |
| Interest rate contracts | $ | 355 | | $ | (2,163) | | $ | — | | $ | (220) | | $ | (361) | | $ | 38 | | $ | — | | $ | 62 | | $ | 486 | | $ | (1,803) | | $ | (2,060) | |
| Foreign exchange contracts | 50 | | 704 | | — | | 105 | | 24 | | 152 | | — | | (89) | | (333) | | 613 | | 408 | |
| Equity contracts | (1,104) | | (237) | | — | | 61 | | 661 | | (599) | | — | | (65) | | 148 | | (1,135) | | (596) | |
| Commodity contracts | 278 | | 85 | | — | | 270 | | 91 | | (447) | | — | | (14) | | (214) | | 49 | | 12 | |
| Credit derivatives | (157) | | (92) | | — | | 19 | | 217 | | 82 | | — | | — | | 4 | | 73 | | (84) | |
Total trading derivatives, net(4) | $ | (578) | | $ | (1,703) | | $ | — | | $ | 235 | | $ | 632 | | $ | (774) | | $ | — | | $ | (106) | | $ | 91 | | $ | (2,203) | | $ | (2,320) | |
Table continues on the next page.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net realized/unrealized gains (losses) incl. in(1) | Transfers | | | | | | Unrealized
gains (losses)
still held(3) |
| In millions of dollars | Dec. 31, 2022 | Principal
transactions | Other(1)(2) | into
Level 3 | out of
Level 3 | Purchases | Issuances | Sales | Settlements | Sept. 30, 2023 |
| Investments | | | | | | | | | | | |
| Mortgage-backed securities | | | | | | | | | | | |
| U.S. government-sponsored agency guaranteed | $ | 30 | | $ | — | | $ | (1) | | $ | — | | $ | (3) | | $ | 4 | | $ | — | | $ | (1) | | $ | — | | $ | 29 | | $ | (3) | |
| Residential | 41 | | — | | (1) | | — | | — | | — | | — | | (16) | | — | | 24 | | (1) | |
| Commercial | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
| Total investment mortgage-backed securities | $ | 71 | | $ | — | | $ | (2) | | $ | — | | $ | (3) | | $ | 4 | | $ | — | | $ | (17) | | $ | — | | $ | 53 | | $ | (4) | |
| U.S. Treasury and federal agency securities | $ | — | | $ | — | | $ | (1) | | $ | — | | $ | — | | $ | 51 | | $ | — | | $ | (30) | | $ | — | | $ | 20 | | $ | — | |
| State and municipal | 586 | | — | | (20) | | 2 | | (77) | | 46 | | — | | (44) | | — | | 493 | | (23) | |
| Foreign government | 608 | | — | | (7) | | 27 | | (197) | | 647 | | — | | (882) | | — | | 196 | | 1 | |
| Corporate | 343 | | — | | (1) | | — | | (61) | | 96 | | — | | (88) | | — | | 289 | | (4) | |
| Marketable equity securities | 10 | | — | | 1 | | — | | — | | — | | — | | — | | — | | 11 | | — | |
| Asset-backed securities | 1 | | — | | (1) | | 30 | | — | | — | | — | | — | | — | | 30 | | — | |
| Other debt securities | — | | — | | 1 | | — | | (63) | | 62 | | — | | — | | — | | — | | — | |
| Non-marketable equity securities | 430 | | — | | 3 | | 8 | | — | | 16 | | — | | (26) | | — | | 431 | | (5) | |
| Total investments | $ | 2,049 | | $ | — | | $ | (27) | | $ | 67 | | $ | (401) | | $ | 922 | | $ | — | | $ | (1,087) | | $ | — | | $ | 1,523 | | $ | (35) | |
| Loans | $ | 1,361 | | $ | — | | $ | (249) | | $ | 2 | | $ | (309) | | $ | — | | $ | 116 | | $ | — | | $ | (656) | | $ | 265 | | $ | (104) | |
| Mortgage servicing rights | 665 | | — | | 61 | | — | | — | | — | | 54 | | — | | (51) | | 729 | | 62 | |
| Other financial assets measured at fair value on a recurring basis | 57 | | — | | (24) | | — | | (2) | | 50 | | — | | (4) | | — | | 77 | | — | |
| Liabilities | | | | | | | | | | | |
| Interest-bearing deposits | $ | 15 | | $ | (7) | | $ | (12) | | $ | 49 | | $ | (1) | | $ | — | | $ | 83 | | $ | — | | $ | (10) | | $ | 155 | | $ | (11) | |
| Securities loaned and sold under agreements to repurchase | 1,031 | | (8) | | — | | — | | (24) | | 1,335 | | — | | — | | (1,869) | | 481 | | 1 | |
| Trading account liabilities | | | | | | | | | | | |
| Securities sold, not yet purchased | 50 | | (13) | | — | | 22 | | (34) | | 125 | | — | | — | | (88) | | 88 | | (2) | |
| Other trading liabilities | 3 | | 2 | | — | | 4 | | (2) | | 2 | | — | | — | | (4) | | 1 | | — | |
| Short-term borrowings | 38 | | 40 | | — | | 35 | | (23) | | 1 | | 478 | | — | | (33) | | 456 | | (31) | |
| Long-term debt | 36,117 | | 2,589 | | — | | 4,238 | | (7,442) | | — | | 7,371 | | — | | (2,045) | | 35,650 | | 841 | |
| Other financial liabilities measured on a recurring basis | 2 | | — | | 1 | | — | | (1) | | — | | 49 | | (21) | | — | | 28 | | — | |
| | | | | | | | | | | |
(1)Net realized/unrealized gains (losses) are presented as increase (decrease) to Level 3 assets, and as (increase) decrease to Level 3 liabilities. Changes in fair value of available-for-sale debt securities are recorded in AOCI, unless related to credit impairment, while gains and losses from sales are recorded in Realized gains (losses) from sales of investments in the Consolidated Statement of Income.
(2)Unrealized gains (losses) on MSRs are recorded in Other revenue in the Consolidated Statement of Income.
(3)Represents the amount of total gains or losses for the period, included in earnings (and AOCI for changes in fair value of available-for-sale debt securities and DVA on fair value option liabilities), attributable to the change in fair value relating to assets and liabilities classified as Level 3 that are still held at September 30, 2023.
(4)Total Level 3 derivative assets and liabilities have been netted in these tables for presentation purposes only.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net realized/unrealized gains (losses) incl. in(1) | Transfers | | | | | | Unrealized
gains (losses)
still held(3) |
| In millions of dollars | Jun. 30, 2022 | Principal
transactions | Other(1)(2) | into
Level 3 | out of
Level 3 | Purchases | Issuances | Sales | Settlements | Sept. 30, 2022 |
| Assets | | | | | | | | | | | |
| Securities borrowed and purchased under agreements to resell | $ | 183 | | $ | (1) | | $ | — | | $ | — | | $ | — | | $ | 128 | | $ | — | | $ | — | | $ | (169) | | $ | 141 | | $ | 3 | |
| Trading non-derivative assets | | | | | | | | | | | |
| Trading mortgage-backed securities | | | | | | | | | | | |
| U.S. government-sponsored agency guaranteed | 708 | | (28) | | — | | 54 | | (153) | | 310 | | — | | (219) | | — | | 672 | | (33) | |
| Residential | 153 | | (2) | | — | | 25 | | (22) | | 33 | | — | | (45) | | — | | 142 | | (2) | |
| Commercial | 138 | | (4) | | — | | 20 | | (17) | | 5 | | — | | (26) | | — | | 116 | | 1 | |
| Total trading mortgage-backed securities | $ | 999 | | $ | (34) | | $ | — | | $ | 99 | | $ | (192) | | $ | 348 | | $ | — | | $ | (290) | | $ | — | | $ | 930 | | $ | (34) | |
| U.S. Treasury and federal agency securities | $ | 1 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | (1) | | $ | — | | $ | — | |
| State and municipal | 80 | | 4 | | — | | 4 | | (6) | | 14 | | — | | (74) | | — | | 22 | | — | |
| Foreign government | 364 | | (14) | | — | | 5 | | (4) | | 70 | | — | | (41) | | — | | 380 | | (9) | |
| Corporate | 537 | | 21 | | — | | 193 | | (72) | | 91 | | — | | (310) | | — | | 460 | | (15) | |
| Marketable equity securities | 133 | | 48 | | — | | 71 | | (12) | | 34 | | — | | (87) | | — | | 187 | | (26) | |
| Asset-backed securities | 554 | | (7) | | — | | 68 | | (25) | | 196 | | — | | (174) | | — | | 612 | | (18) | |
| Other trading assets | 816 | | 32 | | — | | 74 | | (280) | | 191 | | 11 | | (161) | | (4) | | 679 | | (19) | |
| Total trading non-derivative assets | $ | 3,484 | | $ | 50 | | $ | — | | $ | 514 | | $ | (591) | | $ | 944 | | $ | 11 | | $ | (1,137) | | $ | (5) | | $ | 3,270 | | $ | (121) | |
Trading derivatives, net(4) | | | | | | | | | | | |
| Interest rate contracts | $ | 881 | | $ | (278) | | $ | — | | $ | (503) | | $ | (12) | | $ | (195) | | $ | 1 | | $ | 83 | | $ | (3) | | $ | (26) | | $ | (142) | |
| Foreign exchange contracts | 156 | | (171) | | — | | 32 | | (3) | | (146) | | — | | 212 | | 197 | | 277 | | 121 | |
| Equity contracts | (101) | | 162 | | — | | 60 | | 222 | | (347) | | — | | 28 | | 37 | | 61 | | (150) | |
| Commodity contracts | 255 | | 110 | | — | | 140 | | (134) | | (60) | | — | | (2) | | (56) | | 253 | | 151 | |
| Credit derivatives | (349) | | (110) | | — | | 53 | | 124 | | (36) | | — | | 1 | | 204 | | (113) | | (164) | |
Total trading derivatives, net(4) | $ | 842 | | $ | (287) | | $ | — | | $ | (218) | | $ | 197 | | $ | (784) | | $ | 1 | | $ | 322 | | $ | 379 | | $ | 452 | | $ | (184) | |
Table continues on the next page.
| | | | | Net realized/unrealized gains (losses) incl. in(1) | Transfers | | Unrealized
gains (losses)
still held(3) | | | Net realized/unrealized gains (losses) incl. in(1) | Transfers | | Unrealized
gains (losses)
still held(3) |
| In millions of dollars | In millions of dollars | Jun. 30, 2022 | Principal
transactions | Other(1)(2) | into
Level 3 | out of
Level 3 | Purchases | Issuances | Sales | Settlements | Sept. 30, 2022 | In millions of dollars | Jun. 30, 2022 | Principal
transactions | Other(1)(2) | into
Level 3 | out of
Level 3 | Purchases | Issuances | Sales | Settlements | Sept. 30, 2022 |
| Investments | Investments | | | | Investments | | | |
| Mortgage-backed securities | Mortgage-backed securities | | | | Mortgage-backed securities | | | |
| U.S. government-sponsored agency guaranteed | U.S. government-sponsored agency guaranteed | $ | 28 | | $ | — | | $ | (2) | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 26 | | $ | (2) | | U.S. government-sponsored agency guaranteed | $ | 28 | | $ | — | | $ | (2) | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 26 | | $ | (2) | |
| Residential | Residential | 40 | | — | | (4) | | — | | — | | 3 | | — | | — | | — | | 39 | | (5) | | Residential | 40 | | — | | (4) | | — | | — | | 3 | | — | | — | | — | | 39 | | (5) | |
| Commercial | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | |
| | Total investment mortgage-backed securities | Total investment mortgage-backed securities | $ | 68 | | $ | — | | $ | (6) | | $ | — | | $ | — | | $ | 3 | | $ | — | | $ | — | | $ | — | | $ | 65 | | $ | (7) | | Total investment mortgage-backed securities | $ | 68 | | $ | — | | $ | (6) | | $ | — | | $ | — | | $ | 3 | | $ | — | | $ | — | | $ | — | | $ | 65 | | $ | (7) | |
| U.S. Treasury and federal agency securities | U.S. Treasury and federal agency securities | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | U.S. Treasury and federal agency securities | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
| State and municipal | State and municipal | 539 | | — | | (20) | | 81 | | — | | — | | — | | (25) | | — | | 575 | | (14) | | State and municipal | 539 | | — | | (20) | | 81 | | — | | — | | — | | (25) | | — | | 575 | | (14) | |
| Foreign government | Foreign government | 1,001 | | — | | (53) | | 6 | | (56) | | 224 | | — | | (262) | | — | | 860 | | (44) | | Foreign government | 1,001 | | — | | (53) | | 6 | | (56) | | 224 | | — | | (262) | | — | | 860 | | (44) | |
| Corporate | Corporate | 334 | | — | | 4 | | 1 | | (3) | | 1 | | — | | — | | — | | 337 | | — | | Corporate | 334 | | — | | 4 | | 1 | | (3) | | 1 | | — | | — | | — | | 337 | | — | |
| Marketable equity securities | Marketable equity securities | 10 | | — | | — | | — | | — | | — | | — | | — | | — | | 10 | | — | | Marketable equity securities | 10 | | — | | — | | — | | — | | — | | — | | — | | — | | 10 | | — | |
| Asset-backed securities | Asset-backed securities | 1 | | — | | 8 | | — | | — | | — | | — | | (7) | | — | | 2 | | — | | Asset-backed securities | 1 | | — | | 8 | | — | | — | | — | | — | | (7) | | — | | 2 | | — | |
| Other debt securities | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | |
| | Non-marketable equity securities | Non-marketable equity securities | 310 | | — | | (3) | | — | | (10) | | 87 | | — | | — | | — | | 384 | | — | | Non-marketable equity securities | 310 | | — | | (3) | | — | | (10) | | 87 | | — | | — | | — | | 384 | | — | |
| Total investments | Total investments | $ | 2,263 | | $ | — | | $ | (70) | | $ | 88 | | $ | (69) | | $ | 315 | | $ | — | | $ | (294) | | $ | — | | $ | 2,233 | | $ | (65) | | Total investments | $ | 2,263 | | $ | — | | $ | (70) | | $ | 88 | | $ | (69) | | $ | 315 | | $ | — | | $ | (294) | | $ | — | | $ | 2,233 | | $ | (65) | |
| Loans | Loans | $ | 325 | | $ | — | | $ | 5 | | $ | 83 | | $ | (3) | | $ | — | | $ | 333 | | $ | — | | $ | (108) | | $ | 635 | | $ | (6) | | Loans | $ | 325 | | $ | — | | $ | 5 | | $ | 83 | | $ | (3) | | $ | — | | $ | 333 | | $ | — | | $ | (108) | | $ | 635 | | $ | (6) | |
| Mortgage servicing rights | Mortgage servicing rights | 600 | | — | | 37 | | | — | | | 25 | | | (15) | | 647 | | 38 | | Mortgage servicing rights | 600 | | — | | 37 | | — | | — | | — | | 25 | | — | | (15) | | 647 | | 38 | |
| Other financial assets measured on a recurring basis | 63 | | — | | (19) | | 22 | | — | | 7 | | (1) | | (16) | | (6) | | 50 | | (12) | | |
| Other financial assets measured at fair value on a recurring basis | | Other financial assets measured at fair value on a recurring basis | 63 | | — | | (19) | | 22 | | — | | 7 | | (1) | | (16) | | (6) | | 50 | | (12) | |
| Liabilities | Liabilities | | | | Liabilities | | | |
| Interest-bearing deposits | Interest-bearing deposits | $ | 18 | | $ | — | | $ | 3 | | $ | — | | $ | — | | $ | — | | $ | 2 | | $ | — | | $ | (1) | | $ | 16 | | $ | — | | Interest-bearing deposits | $ | 18 | | $ | — | | $ | 3 | | $ | — | | $ | — | | $ | — | | $ | 2 | | $ | — | | $ | (1) | | $ | 16 | | $ | — | |
| Securities loaned and sold under agreements to repurchase | Securities loaned and sold under agreements to repurchase | 593 | | 36 | | — | | — | | — | | 437 | | 33 | | — | | (30) | | 997 | | — | | Securities loaned and sold under agreements to repurchase | 593 | | 36 | | — | | — | | — | | 437 | | 33 | | — | | (30) | | 997 | | — | |
| Trading account liabilities | Trading account liabilities | | | | Trading account liabilities | | | |
| Securities sold, not yet purchased | Securities sold, not yet purchased | 72 | | (10) | | — | | 13 | | (2) | | 46 | | — | | — | | (36) | | 103 | | (13) | | Securities sold, not yet purchased | 72 | | (10) | | — | | 13 | | (2) | | 46 | | — | | — | | (36) | | 103 | | (13) | |
| Other trading liabilities | Other trading liabilities | — | | (2) | | — | | — | | — | | — | | — | | — | | — | | 2 | | — | | Other trading liabilities | — | | (2) | | — | | — | | — | | — | | — | | — | | — | | 2 | | — | |
| Short-term borrowings | Short-term borrowings | 81 | | 12 | | — | | 1 | | (40) | | — | | 6 | | — | | (1) | | 35 | | (17) | | Short-term borrowings | 81 | | 12 | | — | | 1 | | (40) | | — | | 6 | | — | | (1) | | 35 | | (17) | |
| Long-term debt | Long-term debt | 29,778 | | 3,734 | | — | | 2,831 | | (811) | | — | | 3,838 | | — | | (192) | | 31,710 | | 3,336 | | Long-term debt | 29,778 | | 3,734 | | — | | 2,831 | | (811) | | — | | 3,838 | | — | | (192) | | 31,710 | | 3,336 | |
| Other financial liabilities measured on a recurring basis | Other financial liabilities measured on a recurring basis | — | | — | | (8) | | 5 | | — | | — | | — | | | — | | 13 | | — | | Other financial liabilities measured on a recurring basis | — | | — | | (8) | | 5 | | — | | — | | — | | — | | — | | 13 | | — | |
|
(1)Net realized/unrealized gains (losses) are presented as increase (decrease) to Level 3 assets, and as (increase) decrease to Level 3 liabilities. Changes in fair value of available-for-sale debt securities are recorded in AOCI, unless related to credit impairment, while gains and losses from sales are recorded in Realized gains (losses) from sales of investments in the Consolidated Statement of Income.
(2)Unrealized gains (losses) on MSRs are recorded in Other revenue in the Consolidated Statement of Income.
(3)Represents the amount of total gains or losses for the period, included in earnings (and AOCI for changes in fair value of available-for-sale debt securities and DVA on fair value option liabilities), attributable to the change in fair value relating to assets and liabilities classified as Level 3 that are still held at September 30, 2022.
(4)Total Level 3 trading derivative assets and liabilities have been netted in these tables for presentation purposes only.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net realized/unrealized gains (losses) incl. in(1) | Transfers | | | | | | Unrealized
gains (losses)
still held(3) |
| In millions of dollars | Dec. 31, 2021 | Principal
transactions | Other(1)(2) | into
Level 3 | out of
Level 3 | Purchases | Issuances | Sales | Settlements | Sept. 30, 2022 |
| Assets | | | | | | | | | | | |
| Securities borrowed and purchased under agreements to resell | $ | 231 | | $ | (2) | | $ | — | | $ | — | | $ | — | | $ | 252 | | $ | — | | $ | — | | $ | (340) | | $ | 141 | | $ | 14 | |
| Trading non-derivative assets | | | | | | | | | | | |
| Trading mortgage-backed securities | | | | | | | | | | | |
| U.S. government-sponsored agency guaranteed | 496 | | (41) | | — | | 181 | | (311) | | 794 | | — | | (447) | | — | | 672 | | (53) | |
| Residential | 104 | | (2) | | — | | 86 | | (54) | | 118 | | — | | (110) | | — | | 142 | | (1) | |
| Commercial | 81 | | (9) | | — | | 117 | | (51) | | 14 | | — | | (36) | | — | | 116 | | 7 | |
| Total trading mortgage-backed securities | $ | 681 | | $ | (52) | | $ | — | | $ | 384 | | $ | (416) | | $ | 926 | | $ | — | | $ | (593) | | $ | — | | $ | 930 | | $ | (47) | |
| U.S. Treasury and federal agency securities | $ | 4 | | $ | (4) | | $ | — | | $ | 2 | | $ | (1) | | $ | — | | $ | — | | $ | — | | $ | (1) | | $ | — | | $ | — | |
| State and municipal | 37 | | 9 | | — | | 75 | | (26) | | 15 | | — | | (88) | | — | | 22 | | (1) | |
| Foreign government | 23 | | (40) | | — | | 304 | | (5) | | 157 | | — | | (59) | | — | | 380 | | (19) | |
| Corporate | 412 | | 89 | | — | | 455 | | (350) | | 919 | | — | | (1,065) | | — | | 460 | | (109) | |
| Marketable equity securities | 174 | | 34 | | — | | 134 | | (99) | | 142 | | — | | (198) | | — | | 187 | | (47) | |
| Asset-backed securities | 613 | | (26) | | — | | 208 | | (192) | | 589 | | — | | (580) | | — | | 612 | | (151) | |
| Other trading assets | 576 | | 158 | | — | | 407 | | (372) | | 557 | | 27 | | (662) | | (12) | | 679 | | (95) | |
| Total trading non-derivative assets | $ | 2,520 | | $ | 168 | | $ | — | | $ | 1,969 | | $ | (1,461) | | $ | 3,305 | | $ | 27 | | $ | (3,245) | | $ | (13) | | $ | 3,270 | | $ | (469) | |
Trading derivatives, net(4) | | | | | | | | | | | |
| Interest rate contracts | $ | 1,726 | | $ | 322 | | $ | — | | $ | (430) | | $ | (815) | | $ | (186) | | $ | 7 | | $ | 77 | | $ | (727) | | $ | (26) | | $ | (332) | |
| Foreign exchange contracts | (89) | | 993 | | — | | (443) | | (9) | | 29 | | 20 | | (399) | | 175 | | 277 | | 240 | |
| Equity contracts | (2,140) | | 2,159 | | — | | (13) | | 429 | | 58 | | — | | (288) | | (144) | | 61 | | 1,021 | |
| Commodity contracts | 422 | | 732 | | — | | 95 | | (543) | | 60 | | — | | (144) | | (369) | | 253 | | 412 | |
| Credit derivatives | (31) | | (167) | | — | | (12) | | (27) | | (36) | | — | | — | | 160 | | (113) | | (260) | |
Total trading derivatives, net(4) | $ | (112) | | $ | 4,039 | | $ | — | | $ | (803) | | $ | (965) | | $ | (75) | | $ | 27 | | $ | (754) | | $ | (905) | | $ | 452 | | $ | 1,081 | |
Table continues on the next page.
| | | | | Net realized/unrealized gains (losses) incl. in(1) | Transfers | | Unrealized
gains (losses)
still held(3) | | | Net realized/unrealized gains (losses) incl. in(1) | Transfers | | Unrealized
gains (losses)
still held(3) |
| In millions of dollars | In millions of dollars | Dec. 31, 2021 | Principal
transactions | Other(1)(2) | into
Level 3 | out of
Level 3 | Purchases | Issuances | Sales | Settlements | Sept. 30, 2022 | In millions of dollars | Dec. 31, 2021 | Principal
transactions | Other(1)(2) | into
Level 3 | out of
Level 3 | Purchases | Issuances | Sales | Settlements | Sept. 30, 2022 |
| Investments | Investments | | | | Investments | | | |
| Mortgage-backed securities | Mortgage-backed securities | | | | Mortgage-backed securities | | | |
| U.S. government-sponsored agency guaranteed | U.S. government-sponsored agency guaranteed | $ | 51 | | $ | — | | $ | (11) | | $ | 1 | | $ | (10) | | $ | 4 | | $ | — | | $ | (9) | | $ | — | | $ | 26 | | $ | (5) | | U.S. government-sponsored agency guaranteed | $ | 51 | | $ | — | | $ | (11) | | $ | 1 | | $ | (10) | | $ | 4 | | $ | — | | $ | (9) | | $ | — | | $ | 26 | | $ | (5) | |
| Residential | Residential | 94 | | — | | (10) | | — | | (39) | | 3 | | — | | (9) | | — | | 39 | | (6) | | Residential | 94 | | — | | (10) | | — | | (39) | | 3 | | — | | (9) | | — | | 39 | | (6) | |
| Commercial | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | |
| | Total investment mortgage-backed securities | Total investment mortgage-backed securities | $ | 145 | | $ | — | | $ | (21) | | $ | 1 | | $ | (49) | | $ | 7 | | $ | — | | $ | (18) | | $ | — | | $ | 65 | | $ | (11) | | Total investment mortgage-backed securities | $ | 145 | | $ | — | | $ | (21) | | $ | 1 | | $ | (49) | | $ | 7 | | $ | — | | $ | (18) | | $ | — | | $ | 65 | | $ | (11) | |
| U.S. Treasury and federal agency securities | U.S. Treasury and federal agency securities | $ | 1 | | $ | — | | $ | (1) | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | U.S. Treasury and federal agency securities | $ | 1 | | $ | — | | $ | (1) | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
| State and municipal | State and municipal | 772 | | — | | (98) | | 81 | | (142) | | 1 | | — | | (39) | | — | | 575 | | (73) | | State and municipal | 772 | | — | | (98) | | 81 | | (142) | | 1 | | — | | (39) | | — | | 575 | | (73) | |
| Foreign government | Foreign government | 786 | | — | | (92) | | 256 | | (169) | | 609 | | — | | (530) | | — | | 860 | | (36) | | Foreign government | 786 | | — | | (92) | | 256 | | (169) | | 609 | | — | | (530) | | — | | 860 | | (36) | |
| Corporate | Corporate | 188 | | — | | (3) | | 154 | | (3) | | 1 | | — | | — | | — | | 337 | | (2) | | Corporate | 188 | | — | | (3) | | 154 | | (3) | | 1 | | — | | — | | — | | 337 | | (2) | |
| Marketable equity securities | Marketable equity securities | 16 | | — | | (6) | | — | | — | | — | | — | | — | | — | | 10 | | — | | Marketable equity securities | 16 | | — | | (6) | | — | | — | | — | | — | | — | | — | | 10 | | — | |
| Asset-backed securities | Asset-backed securities | 3 | | — | | 19 | | — | | — | | — | | — | | (20) | | — | | 2 | | — | | Asset-backed securities | 3 | | — | | 19 | | — | | — | | — | | — | | (20) | | — | | 2 | | — | |
| Other debt securities | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | |
| | Non-marketable equity securities | Non-marketable equity securities | 316 | | — | | (15) | | 11 | | (10) | | 107 | | — | | (25) | | — | | 384 | | — | | Non-marketable equity securities | 316 | | — | | (15) | | 11 | | (10) | | 107 | | — | | (25) | | — | | 384 | | — | |
| Total investments | Total investments | $ | 2,227 | | $ | — | | $ | (217) | | $ | 503 | | $ | (373) | | $ | 725 | | $ | — | | $ | (632) | | $ | — | | $ | 2,233 | | $ | (122) | | Total investments | $ | 2,227 | | $ | — | | $ | (217) | | $ | 503 | | $ | (373) | | $ | 725 | | $ | — | | $ | (632) | | $ | — | | $ | 2,233 | | $ | (122) | |
| Loans | Loans | $ | 711 | | $ | — | | $ | (185) | | $ | 84 | | $ | (198) | | $ | — | | $ | 334 | | $ | — | | $ | (111) | | $ | 635 | | $ | (52) | | Loans | $ | 711 | | $ | — | | $ | (185) | | $ | 84 | | $ | (198) | | $ | — | | $ | 334 | | $ | — | | $ | (111) | | $ | 635 | | $ | (52) | |
| Mortgage servicing rights | Mortgage servicing rights | 404 | | — | | 195 | | — | | — | | — | | 94 | | — | | (46) | | 647 | | 194 | | Mortgage servicing rights | 404 | | — | | 195 | | — | | — | | — | | 94 | | — | | (46) | | 647 | | 194 | |
| Other financial assets measured on a recurring basis | 73 | | — | | (13) | | 29 | | (16) | | 21 | | 39 | | (17) | | (66) | | 50 | | 8 | | |
| Other financial assets measured at fair value on a recurring basis | | Other financial assets measured at fair value on a recurring basis | 73 | | — | | (13) | | 29 | | (16) | | 21 | | 39 | | (17) | | (66) | | 50 | | 8 | |
| Liabilities | Liabilities | | | | Liabilities | | | |
| Interest-bearing deposits | Interest-bearing deposits | $ | 183 | | $ | — | | $ | 6 | | $ | 7 | | $ | (122) | | $ | — | | $ | 20 | | $ | — | | $ | (66) | | $ | 16 | | $ | — | | Interest-bearing deposits | $ | 183 | | $ | — | | $ | 6 | | $ | 7 | | $ | (122) | | $ | — | | $ | 20 | | $ | — | | $ | (66) | | $ | 16 | | $ | — | |
| Securities loaned and sold under agreements to repurchase | Securities loaned and sold under agreements to repurchase | 643 | | 86 | | — | | — | | (3) | | 453 | | 33 | | — | | (43) | | 997 | | — | | Securities loaned and sold under agreements to repurchase | 643 | | 86 | | — | | — | | (3) | | 453 | | 33 | | — | | (43) | | 997 | | — | |
| Trading account liabilities | Trading account liabilities | | | | Trading account liabilities | | | |
| Securities sold, not yet purchased | Securities sold, not yet purchased | 65 | | 11 | | — | | 48 | | (21) | | 129 | | — | | 1 | | (108) | | 103 | | (6) | | Securities sold, not yet purchased | 65 | | 11 | | — | | 48 | | (21) | | 129 | | — | | 1 | | (108) | | 103 | | (6) | |
| Other trading liabilities | Other trading liabilities | — | | (2) | | — | | — | | — | | — | | — | | — | | — | | 2 | | — | | Other trading liabilities | — | | (2) | | — | | — | | — | | — | | — | | — | | — | | 2 | | — | |
| Short-term borrowings | Short-term borrowings | 105 | | 101 | | — | | 41 | | (61) | | — | | 82 | | — | | (31) | | 35 | | (22) | | Short-term borrowings | 105 | | 101 | | — | | 41 | | (61) | | — | | 82 | | — | | (31) | | 35 | | (22) | |
| Long-term debt | Long-term debt | 25,509 | | 11,979 | | — | | 9,574 | | (4,318) | | — | | 13,537 | | — | | (613) | | 31,710 | | 9,530 | | Long-term debt | 25,509 | | 11,979 | | — | | 9,574 | | (4,318) | | — | | 13,537 | | — | | (613) | | 31,710 | | 9,530 | |
| Other financial liabilities measured on a recurring basis | Other financial liabilities measured on a recurring basis | 1 | | — | | (7) | | 5 | | — | | — | | — | | — | | — | | 13 | | — | | Other financial liabilities measured on a recurring basis | 1 | | — | | (7) | | 5 | | — | | — | | — | | — | | — | | 13 | | — | |
|
(1)Net realized/unrealized gains (losses) are presented as increase (decrease) to Level 3 assets, and as (increase) decrease to Level 3 liabilities. Changes in fair value of available-for-sale debt securities are recorded in AOCI, unless related to credit impairment, while gains and losses from sales are recorded in Realized gains (losses) from sales of investments in the Consolidated Statement of Income.
(2)Unrealized gains (losses) on MSRs are recorded in Other revenue in the Consolidated Statement of Income.
(3)Represents the amount of total gains or losses for the period, included in earnings (and AOCI for changes in fair value of available-for-sale debt securities and DVA on fair value option liabilities), attributable to the change in fair value relating to assets and liabilities classified as Level 3 that are still held at September 30, 2022.
(4)Total Level 3 trading derivative assets and liabilities have been netted in these tables for presentation purposes only.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net realized/unrealized gains (losses) incl. in(1) | Transfers | | | | | | Unrealized
gains (losses)
still held(3) |
| In millions of dollars | Jun. 30, 2021 | Principal
transactions | Other(1)(2) | into
Level 3 | out of
Level 3 | Purchases | Issuances | Sales | Settlements | Sept. 30, 2021 |
| Assets | | | | | | | | | | | |
| Securities borrowed and purchased under agreements to resell | $ | 211 | | $ | 1 | | $ | — | | $ | 45 | | $ | — | | $ | 43 | | $ | — | | $ | — | | $ | (43) | | $ | 257 | | $ | 3 | |
| Trading non-derivative assets | | | | | | | | | | | |
| Trading mortgage-backed securities | | | | | | | | | | | |
| U.S. government-sponsored agency guaranteed | 376 | | 20 | | — | | 60 | | (52) | | 154 | | — | | (126) | | — | | 432 | | 17 | |
| Residential | 95 | | 2 | | — | | 5 | | (9) | | 19 | | — | | (51) | | — | | 61 | | 3 | |
| Commercial | 87 | | 1 | | — | | 17 | | (12) | | 36 | | — | | (9) | | — | | 120 | | 1 | |
| Total trading mortgage-backed securities | $ | 558 | | $ | 23 | | $ | — | | $ | 82 | | $ | (73) | | $ | 209 | | $ | — | | $ | (186) | | $ | — | | $ | 613 | | $ | 21 | |
| U.S. Treasury and federal agency securities | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
| State and municipal | 70 | | 3 | | — | | — | | — | | — | | — | | (2) | | — | | 71 | | 4 | |
| Foreign government | 141 | | 26 | | — | | 7 | | (98) | | 6 | | — | | (49) | | — | | 33 | | 4 | |
| Corporate | 823 | | 3 | | — | | 123 | | (110) | | 246 | | — | | (544) | | — | | 541 | | 16 | |
| Marketable equity securities | 147 | | 12 | | — | | 55 | | (9) | | 58 | | — | | (58) | | — | | 205 | | 14 | |
| Asset-backed securities | 692 | | 101 | | — | | 128 | | (19) | | 186 | | — | | (424) | | — | | 664 | | (28) | |
| Other trading assets | 555 | | 138 | | — | | 25 | | (67) | | 379 | | — | | (115) | | — | | 915 | | 36 | |
| Total trading non-derivative assets | $ | 2,986 | | $ | 306 | | $ | — | | $ | 420 | | $ | (376) | | $ | 1,084 | | $ | — | | $ | (1,378) | | $ | — | | $ | 3,042 | | $ | 67 | |
Trading derivatives, net(4) | | | | | | | | | | | |
| Interest rate contracts | $ | 1,764 | | $ | (160) | | $ | — | | $ | (79) | | $ | 56 | | $ | 10 | | $ | — | | $ | — | | $ | (100) | | $ | 1,491 | | $ | (189) | |
| Foreign exchange contracts | (184) | | 131 | | — | | (71) | | (22) | | 11 | | — | | (3) | | (70) | | (208) | | 121 | |
| Equity contracts | (2,550) | | 538 | | — | | (370) | | 668 | | 134 | | — | | (98) | | (295) | | (1,973) | | 452 | |
| Commodity contracts | 142 | | 200 | | — | | (3) | | 106 | | 44 | | — | | (50) | | (21) | | 418 | | 218 | |
| Credit derivatives | (41) | | (84) | | — | | 24 | | 116 | | — | | — | | — | | 35 | | 50 | | (87) | |
Total trading derivatives, net(4) | $ | (869) | | $ | 625 | | $ | — | | $ | (499) | | $ | 924 | | $ | 199 | | $ | — | | $ | (151) | | $ | (451) | | $ | (222) | | $ | 515 | |
Table continues on the next page.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net realized/unrealized gains (losses) incl. in(1) | Transfers | | | | | | Unrealized
gains (losses)
still held(3) |
| In millions of dollars | Jun. 30, 2021 | Principal
transactions | Other(1)(2) | into
Level 3 | out of
Level 3 | Purchases | Issuances | Sales | Settlements | Sept. 30, 2021 |
| Investments | | | | | | | | | | | |
| Mortgage-backed securities | | | | | | | | | | | |
| U.S. government-sponsored agency guaranteed | $ | 52 | | $ | — | | $ | — | | $ | 20 | | $ | (10) | | $ | — | | $ | — | | $ | (10) | | $ | — | | $ | 52 | | $ | — | |
| Residential | — | | — | | — | | — | | — | | 12 | | — | | — | | — | | 12 | | — | |
| Commercial | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
| Total investment mortgage-backed securities | $ | 52 | | $ | — | | $ | — | | $ | 20 | | $ | (10) | | $ | 12 | | $ | — | | $ | (10) | | $ | — | | $ | 64 | | $ | — | |
| U.S. Treasury and federal agency securities | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
| State and municipal | 748 | | — | | (6) | | — | | — | | 2 | | — | | (9) | | — | | 735 | | (6) | |
| Foreign government | 957 | | — | | (25) | | 63 | | (232) | | 99 | | — | | (50) | | — | | 812 | | (6) | |
| Corporate | 104 | | — | | (2) | | 151 | | (41) | | 7 | | — | | (27) | | — | | 192 | | — | |
| Marketable equity securities | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
| Asset-backed securities | 3 | | — | | — | | — | | — | | — | | — | | — | | — | | 3 | | — | |
| Other debt securities | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
| Non-marketable equity securities | 382 | | — | | (36) | | 1 | | — | | — | | — | | — | | — | | 347 | | (53) | |
| Total investments | $ | 2,246 | | $ | — | | $ | (69) | | $ | 235 | | $ | (283) | | $ | 120 | | $ | — | | $ | (96) | | $ | — | | $ | 2,153 | | $ | (65) | |
| Loans | $ | 429 | | $ | — | | $ | (16) | | $ | — | | $ | (20) | | $ | — | | $ | 336 | | $ | — | | $ | (7) | | $ | 722 | | $ | 14 | |
| Mortgage servicing rights | 419 | | — | | (3) | | — | | — | | — | | 8 | | — | | (15) | | 409 | | (3) | |
| Other financial assets measured on a recurring basis | 55 | | — | | 3 | | 10 | | (4) | | 33 | | — | | (11) | | — | | 86 | | — | |
| Liabilities | | | | | | | | | | | |
| Interest-bearing deposits | $ | 154 | | $ | — | | $ | (25) | | $ | — | | $ | — | | $ | — | | $ | 14 | | $ | — | | $ | (11) | | $ | 182 | | $ | 5 | |
| Securities loaned and sold under agreements to repurchase | 488 | | (29) | | — | | 183 | | — | | — | | — | | — | | (44) | | 656 | | 6 | |
| Trading account liabilities | | | | | | | | | | | |
| Securities sold, not yet purchased | 168 | | (22) | | — | | 7 | | (4) | | 21 | | — | | — | | (126) | | 88 | | 4 | |
| Other trading liabilities | 1 | | 1 | | — | | — | | — | | — | | — | | — | | — | | — | | 4 | |
| Short-term borrowings | 41 | | (1) | | — | | 2 | | (12) | | — | | 2 | | — | | (31) | | 3 | | 2 | |
| Long-term debt | 25,068 | | 486 | | — | | 2,052 | | (1,086) | | — | | 1,526 | | — | | (1,032) | | 26,042 | | 434 | |
| Other financial liabilities measured on a recurring basis | 4 | | — | | — | | — | | — | | — | | — | | — | | (3) | | 1 | | — | |
| | | | | | | | | | | |
(1)Net realized/unrealized gains (losses) are presented as increase (decrease) to Level 3 assets, and as (increase) decrease to Level 3 liabilities. Changes in fair value of available-for-sale debt securities are recorded in AOCI, unless related to other-than-temporary impairment, while gains and losses from sales are recorded in Realized gains (losses) from sales of investments in the Consolidated Statement of Income.
(2)Unrealized gains (losses) on MSRs are recorded in Other revenue in the Consolidated Statement of Income.
(3)Represents the amount of total gains or losses for the period, included in earnings (and AOCI for changes in fair value of available-for-sale debt securities and DVA on fair value option liabilities), attributable to the change in fair value relating to assets and liabilities classified as Level 3 that are still held at September 30, 2021.
(4)Total Level 3 trading derivative assets and liabilities have been netted in these tables for presentation purposes only.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net realized/unrealized gains (losses) incl. in(1) | Transfers | | | | | | Unrealized
gains
(losses)
still held(3) |
| In millions of dollars | Dec. 31, 2020 | Principal
transactions | Other(1)(2) | into
Level 3 | out of
Level 3 | Purchases | Issuances | Sales | Settlements | Sept. 30, 2021 |
| Assets | | | | | | | | | | | |
| Securities borrowed and purchased under agreements to resell | $ | 320 | | $ | (10) | | $ | — | | $ | 45 | | $ | (49) | | $ | 319 | | $ | — | | $ | — | | $ | (368) | | $ | 257 | | $ | 25 | |
| Trading non-derivative assets | | | | | | | | | | | |
| Trading mortgage-backed securities | | | | | | | | | | | |
| U.S. government-sponsored agency guaranteed | 27 | | 21 | | — | | 312 | | (60) | | 268 | | — | | (136) | | — | | 432 | | 31 | |
| Residential | 340 | | 24 | | — | | 74 | | (77) | | 220 | | — | | (520) | | — | | 61 | | 17 | |
| Commercial | 136 | | 22 | | — | | 93 | | (53) | | 60 | | — | | (138) | | — | | 120 | | 2 | |
| Total trading mortgage-backed securities | $ | 503 | | $ | 67 | | $ | — | | $ | 479 | | $ | (190) | | $ | 548 | | $ | — | | $ | (794) | | $ | — | | $ | 613 | | $ | 50 | |
| U.S. Treasury and federal agency securities | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
| State and municipal | 94 | | 3 | | — | | — | | (29) | | 5 | | — | | (2) | | — | | 71 | | 4 | |
| Foreign government | 51 | | 31 | | — | | 143 | | (126) | | 77 | | — | | (143) | | — | | 33 | | 4 | |
| Corporate | 375 | | 78 | | — | | 441 | | (278) | | 721 | | — | | (796) | | — | | 541 | | (6) | |
| Marketable equity securities | 73 | | 59 | | — | | 139 | | (51) | | 93 | | — | | (108) | | — | | 205 | | 26 | |
| Asset-backed securities | 1,606 | | 349 | | — | | 163 | | (217) | | 1,120 | | — | | (2,357) | | — | | 664 | | (58) | |
| Other trading assets | 945 | | 156 | | — | | 86 | | (196) | | 727 | | 4 | | (803) | | (4) | | 915 | | 29 | |
| Total trading non-derivative assets | $ | 3,647 | | $ | 743 | | $ | — | | $ | 1,451 | | $ | (1,087) | | $ | 3,291 | | $ | 4 | | $ | (5,003) | | $ | (4) | | $ | 3,042 | | $ | 49 | |
Trading derivatives, net(4) | | | | | | | | | | | |
| Interest rate contracts | $ | 1,614 | | $ | (458) | | $ | — | | $ | 94 | | $ | 377 | | $ | 12 | | $ | (84) | | $ | — | | $ | (64) | | $ | 1,491 | | $ | (216) | |
| Foreign exchange contracts | 52 | | 52 | | — | | (63) | | (18) | | 145 | | — | | (300) | | (76) | | (208) | | 53 | |
| Equity contracts | (3,213) | | 1,150 | | — | | (968) | | 1,566 | | 243 | | — | | (215) | | (536) | | (1,973) | | 237 | |
| Commodity contracts | 292 | | 750 | | — | | 7 | | (511) | | 138 | | — | | (205) | | (53) | | 418 | | 272 | |
| Credit derivatives | 48 | | (205) | | — | | 39 | | 45 | | — | | — | | — | | 123 | | 50 | | (239) | |
Total trading derivatives, net(4) | $ | (1,207) | | $ | 1,289 | | $ | — | | $ | (891) | | $ | 1,459 | | $ | 538 | | $ | (84) | | $ | (720) | | $ | (606) | | $ | (222) | | $ | 107 | |
| Investments | | | | | | | | | | | |
| Mortgage-backed securities | | | | | | | | | | | |
| U.S. government-sponsored agency guaranteed | $ | 30 | | $ | — | | $ | 2 | | $ | 42 | | $ | (10) | | $ | 3 | | $ | — | | $ | (15) | | $ | — | | $ | 52 | | $ | (53) | |
| Residential | — | | — | | — | | — | | — | | 12 | | — | | — | | — | | 12 | | — | |
| Commercial | — | | — | | — | | — | | — | | | — | | — | | — | | — | | — | |
| Total investment mortgage-backed securities | $ | 30 | | $ | — | | $ | 2 | | $ | 42 | | $ | (10) | | $ | 15 | | $ | — | | $ | (15) | | $ | — | | $ | 64 | | $ | (53) | |
| U.S. Treasury and federal agency securities | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
| State and municipal | 834 | | — | | (16) | | 58 | | (108) | | 5 | | — | | (38) | | — | | 735 | | (12) | |
| Foreign government | 268 | | — | | (24) | | 503 | | (521) | | 744 | | — | | (158) | | — | | 812 | | (4) | |
| Corporate | 60 | | — | | (13) | | 183 | | (41) | | 37 | | — | | (34) | | — | | 192 | | 2 | |
| Marketable equity securities | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
| Asset-backed securities | 1 | | — | | (21) | | 36 | | — | | — | | — | | (13) | | — | | 3 | | (25) | |
| Other debt securities | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
| Non-marketable equity securities | 349 | | — | | 4 | | 2 | | — | | — | | — | | (8) | | — | | 347 | | (53) | |
| Total investments | $ | 1,542 | | $ | — | | $ | (68) | | $ | 824 | | $ | (680) | | $ | 801 | | $ | — | | $ | (266) | | $ | — | | $ | 2,153 | | $ | (145) | |
Table continues on the next page.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net realized/unrealized gains (losses) incl. in(1) | Transfers | | | | | | Unrealized
gains
(losses)
still held(3) |
| In millions of dollars | Dec. 31, 2020 | Principal
transactions | Other(1)(2) | into
Level 3 | out of
Level 3 | Purchases | Issuances | Sales | Settlements | Sept. 30, 2021 |
| Loans | $ | 1,985 | | $ | — | | $ | 332 | | $ | 271 | | $ | (2,071) | | $ | — | | $ | 337 | | $ | — | | $ | (132) | | $ | 722 | | $ | 111 | |
| Mortgage servicing rights | 336 | | — | | 49 | | — | | — | | — | | 76 | | — | | (52) | | 409 | | 50 | |
| Other financial assets measured on a recurring basis | — | | — | | 3 | | 65 | | (4) | | 33 | | — | | (11) | | — | | 86 | | — | |
| Liabilities | | | | | | | | | | | |
| Interest-bearing deposits | $ | 206 | | $ | — | | $ | (7) | | $ | — | | $ | (44) | | $ | — | | $ | 34 | | $ | — | | $ | (21) | | $ | 182 | | $ | (146) | |
| Securities loaned and sold under agreements to repurchase | 631 | | (22) | | — | | 183 | | (483) | | 488 | | — | | — | | (185) | | 656 | | 25 | |
| Trading account liabilities | | | | | | | | | | | |
| Securities sold, not yet purchased | 214 | | 39 | | — | | 69 | | (29) | | 41 | | — | | — | | (168) | | 88 | | 4 | |
| Other trading liabilities | 26 | | 26 | | — | | — | | — | | — | | — | | — | | — | | — | | — | |
| Short-term borrowings | 219 | | 31 | | — | | 44 | | (56) | | — | | 27 | | — | | (200) | | 3 | | 2 | |
| Long-term debt | 25,210 | | 2,259 | | — | | 6,921 | | (7,054) | | — | | 9,071 | | — | | (5,847) | | 26,042 | | 1,305 | |
| Other financial liabilities measured on a recurring basis | 1 | | — | | (3) | | — | | (4) | | — | | 14 | | — | | (13) | | 1 | | — | |
| | | | | | | | | | | |
(1)Net realized/unrealized gains (losses) are presented as increase (decrease) to Level 3 assets, and as (increase) decrease to Level 3 liabilities. Changes in fair value of available-for-sale debt securities are recorded in AOCI, unless related to other-than-temporary impairment, while gains and losses from sales are recorded in Realized gains (losses) from sales of investments in the Consolidated Statement of Income.
(2)Unrealized gains (losses) on MSRs are recorded in Other revenue in the Consolidated Statement of Income.
(3)Represents the amount of total gains or losses for the period, included in earnings (and AOCI for changes in fair value of available-for-sale debt securities and DVA on fair value option liabilities), attributable to the change in fair value relating to assets and liabilities classified as Level 3 that are still held at September 30, 2021.
(4)Total Level 3 trading derivative assets and liabilities have been netted in these tables for presentation purposes only.
Level 3 Fair Value Transfers
The following were the significant Level 3 transfers for the period December 31, 2022 to September 30, 2023:
•During the three and nine months ended September 30, 2023, transfers of Long-term debt were $1.0 billion and $4.2 billion from Level 2 to Level 3, respectively. Of the $4.2 billion transfer, approximately $3.6 billion related to interest rate option volatility inputs becoming unobservable and/or significant relative to their overall valuation, and $0.6 billion related to equity and credit derivative inputs (in addition to other volatility inputs, e.g., interest rate volatility inputs) becoming unobservable and/or significant to their overall valuation. In other instances, market changes have resulted in some inputs becoming more observable, and some unobservable inputs becoming less significant to the overall valuation of the instruments (e.g., when an option becomes deep-in or deep-out of the money). This has primarily resulted in $1.3 billion and $7.4 billion of certain structured long-term debt products being transferred from Level 3 to Level 2 during the three and nine months ended September 30, 2023, respectively.
The following were the significant Level 3 transfers for the period December 31, 2021 to September 30, 2022:
•During the three and nine months ended September 30, 2022, transfers of Long-term debtwere $2.8 billion and $9.6 billion, respectively, from Level 2 to Level 3. Of the $9.6 billion transfer in the nine months ended September 30, 2022, approximately $6.8 billion related to interest rate option volatility inputs becoming unobservable and/or significant relative to their overall valuation, and $2.8 billion related to equity and credit derivative inputs (in addition to other volatility inputs, e.g., interest rate volatility inputs) becoming unobservable and/or significant to their overall valuation. In other instances, market changes have resulted in some inputs becoming more observable, and some unobservable inputs becoming less significant to the overall valuation of the instruments (e.g., when an option becomes deep-in or deep-out of the money). This has primarily resulted in $0.8 billion and $4.3 billion of certain structured long-term debt products being transferred from Level 3 to Level 2 during the three and nine months ended September 30, 2022, respectively.
The following were the significant Level 3 transfers for the period December 31, 2020 to September 30, 2021:
•During the nine months ended September 30, 2021, transfers of Loans of $2.0 billion from Level 3 to Level 2 were primarily driven by equity forward and volatilityinputs that have been assessed as not significant to the overall valuation of certain hybrid loan instruments, including equity options and long dated equity call spreads.
•During the three and nine months ended September 30, 2021, transfers of Long-term debt were $2.1 billion and $6.9 billion, respectively, from Level 2 to Level 3. Of the $6.9 billion transfer in the nine months ended September 30, 2021, approximately $5.9 billion related to interest option volatility inputs becoming unobservable and/or significant relative to their overall valuation, and $0.9 billion related to equity volatility inputs (in addition to the other volatility inputs, e.g, interest rate volatility inputs) becoming unobservable and/or significant relative to their overall valuation. In other instances, market changes have resulted in some inputs becoming less significant to the overall valuation of the instruments (e.g., when an option becomes deep-in or deep-out of the money). This has primarily resulted in $1.1 billion and $7.1 billion of certain structured long-term debt products being transferred from Level 3 to Level 2 during the three and nine months ended September 30, 2021, respectively.
•During the nine months ended September 30, 2021, transfers of Equity contracts of $1.0 billion from Level 2 to Level 3 were due to equity forward and volatility inputs becoming an unobservable and/or significant input relative to the overall valuation of equity options and equity swaps. In other instances, market changes have resulted in observable equity forward and volatility inputs becoming an insignificant input to the overall valuation of the instrument (e.g., when an option becomes deep-in or deep-out of the money). This has resulted in $1.6 billion of certain Equity contracts being transferred from Level 3 to Level 2 during the nine months ended September 30, 2021.
Valuation Techniques and Inputs for Level 3 Fair Value Measurements
The following tables present the valuation techniques covering the majority of Level 3 inventory and the most significant unobservable inputs used in Level 3 fair value measurements.
Differences between this table and amounts presented in the Level 3 Fair Value Rollforward table represent individually immaterial items that have been measured using a variety of valuation techniques other than those listed.
| | As of September 30, 2022 | Fair value(1) (in millions) | Methodology | Input | Low(2)(3) | High(2)(3) | Weighted average(4) | |
| As of September 30, 2023 | | As of September 30, 2023 | Fair value(1) (in millions) | Methodology | Input | Low(2)(3) | High(2)(3) | Weighted average(4) |
| Assets | Assets | | | Assets | | |
| Securities borrowed and purchased under agreements to resell | Securities borrowed and purchased under agreements to resell | $ | 141 | | Model-based | Interest rate | 2.40 | % | 2.40 | % | 2.40 | % | Securities borrowed and purchased under agreements to resell | $ | 135 | | Model-based | Interest rate | 4.62 | % | 4.62 | % | 4.62 | % |
| | Credit spread | 15 bps | | Credit spread | 15 bps |
| Mortgage-backed securities | Mortgage-backed securities | $ | 645 | | Yield analysis | Yield | 4.43 | % | 18.27 | % | 8.42 | % | Mortgage-backed securities | $ | 614 | | Yield analysis | Yield | 5.36 | % | 20.06 | % | 9.29 | % |
| | 344 | | Price-based | Price | $ | 0.76 | | $ | 109.46 | | $ | 67.19 | | | 338 | | Price-based | Price | $ | 0.96 | | $ | 112.94 | | $ | 53.66 | |
| State and municipal, foreign government, corporate and other debt securities | State and municipal, foreign government, corporate and other debt securities | $ | 2,433 | | Price-based | Price | $ | 0.01 | $ | 927.52 | $ | 186.59 | State and municipal, foreign government, corporate and other debt securities | $ | 2,107 | | Price-based | Price | $ | 0.85 | $ | 102.42 | $ | 82.51 |
| | 891 | | Model-based | Equity forward | 77.40 | % | 254.90 | % | 103.70 | % | |
| | Equity volatility | — | % | 301.70 | % | 34.50 | % | | 792 | | Model-based | Credit spread | 35 bps | 550 bps | 290 bps |
Marketable equity securities(5) | Marketable equity securities(5) | $ | 156 | | Price-based | Price | $ | — | $ | 7,876.60 | $ | 74.30 | Marketable equity securities(5) | $ | 224 | | Price-based | Price | $ | — | $ | 9,862.00 | $ | 91.95 |
| | | 26 | | Model-based | WAL | 2.48 years | | 33 | | Model-based | WAL | 2.49 years |
| | Recovery (in millions) | $ | 7,148 | | $ | 7,148 | | $ | 7,148 | | | Recovery (in millions) | $ | 7,148 | | $ | 7,148 | | $ | 7,148 | |
| | | Appraised value (in millions) | $ | 4.38 | | $ | 19.30 | | $ | 14.40 | |
| Asset-backed securities | Asset-backed securities | $ | 451 | | Price-based | Price | $ | 21.13 | $ | 145.00 | $ | 88.14 | Asset-backed securities | $ | 573 | | Price-based | Price | $ | 3.97 | $ | 139.76 | $ | 80.52 |
| | | 77 | | Yield analysis | Yield | 6.40 | % | 12.43 | % | 8.13 | % |
| Non-marketable equities | Non-marketable equities | $ | 200 | | Price-based | Illiquidity discount | 10.00 | % | 29.40 | % | 24.47 | % | Non-marketable equities | $ | 296 | | Comparables analysis | Illiquidity discount | 10.00 | % | 20.00 | % | 10.47 | % |
| | 145 | | Comparables analysis | PE ratio | 13.20x | 15.70x | 15.08x | | 53 | | Cash flow | PE ratio | 12.90x | 15.00x | 13.40x |
| | 40 | | Model-based | Cost of capital | 8.10 | % | 17.50 | % | 10.40 | % | | 44 | | Model-based | Discount to price | 8.50 | % | 33.00 | % | 18.63 | % |
| | Revenue multiple | 4.20x | 10.50x | 9.75x | | Revenue multiple | 4.20x | 11.30x | 10.56x |
Derivatives—gross(6) | Derivatives—gross(6) | | Derivatives—gross(6) | |
| Interest rate contracts (gross) | Interest rate contracts (gross) | $ | 7,129 | | Model-based | IR normal volatility | 0.33 | % | 1.78 | % | 1.04 | % | Interest rate contracts (gross) | $ | 7,135 | | Model-based | IR normal volatility | (9.25) | % | 47.18 | % | 2.25 | % |
| | | Interest rate | 2.48 | % | 3.67 | % | 2.78 | % |
| Foreign exchange contracts (gross) | Foreign exchange contracts (gross) | $ | 1,331 | | Model-based | IR basis | (5.23) | % | 16.38 | % | 0.34 | % | Foreign exchange contracts (gross) | $ | 2,201 | | Model-based | IR normal volatility | (9.25) | % | 47.39 | % | 3.28 | % |
| IR normal volatility | 0.33 | % | 1.78 | % | 0.32 | % | |
| | Credit spread | 143 bps | 879 bps | 766 bps | |
Equity contracts (gross)(7) | Equity contracts (gross)(7) | $ | 4,436 | | Model-based | Equity volatility | — | % | 301.69 | % | 41.90 | % | Equity contracts (gross)(7) | $ | 3,463 | | Model-based | Equity volatility | 0.04 | % | 299.19 | % | 38.17 | % |
| | Equity forward | 77.43 | % | 254.93 | % | 103.67 | % | | Equity forward | 64.56 | % | 328.31 | % | 114.08 | % |
| | Equity-Equity correlation | (6.49) | % | 100.00 | % | 87.19 | % | | Equity-FX correlation | (79.00) | % | 70.00 | % | (10.18) | % |
| | Equity-FX correlation | (95.00) | % | 80.00 | % | (9.77) | % | | WAL | 2.49 years |
| | | WAL | 2.48 years | | Recovery (in millions) | $ | 7,148 | | $ | 7,148 | | $ | 7,148 | |
| | Recovery (in millions) | $ | 7,148 | | $ | 7,148 | | $ | 7,148 | | | Equity-IR correlation | (25.00) | % | 44.00 | % | 28.54 | % |
| Commodity and other contracts (gross) | Commodity and other contracts (gross) | $ | 2,559 | | Model-based | Commodity correlation | (50.34) | % | 93.35 | % | 26.54 | % | Commodity and other contracts (gross) | $ | 2,498 | | Model-based | Commodity correlation | (39.67) | % | 93.50 | % | (0.46) | % |
| | Commodity volatility | 15.49 | % | 133.07 | % | 25.90 | % | | Commodity volatility | 7.80 | % | 104.90 | % | 25.13 | % |
| | Forward price | 17.53 | % | 524.16 | % | 123.15 | % | | Forward price | 16.67 | % | 2,000% | 153.87 | % |
| Credit derivatives (gross) | Credit derivatives (gross) | $ | 2,076 | | Model-based | Credit spread | 13 bps | 961 bps | 154 bps | Credit derivatives (gross) | $ | 1,170 | | Model-based | Credit spread | 8 bps | 775 bps | 108 bps |
| | 394 | | Price-based | Recovery rate | 2.00 | % | 75.00 | % | 37.55 | % | | 433 | | Price-based | Recovery rate | 25.00 | % | 40.00 | % | 39.13 | % |
| | Credit correlation | 10.00 | % | 90.00 | % | 43.22 | % | | Credit correlation | 25.00 | % | 90.00 | % | 49.93 | % |
| | Price | $ | — | $ | 95.02 | $ | 7.13 | | Price | $ | 14.86 | $ | 100.07 | $ | 82.59 |
| | | Upfront points | (1.66) | % | 99.00 | % | 48.05 | % |
| | Nontrading derivatives and other financial assets and liabilities measured on a recurring basis (gross) | Nontrading derivatives and other financial assets and liabilities measured on a recurring basis (gross) | $ | 25 | | Price-based | Price | $ | 0.73 | $ | 845.00 | $ | 214.89 | Nontrading derivatives and other financial assets and liabilities measured on a recurring basis (gross) | $ | 105 | | Price-based | Price | $ | — | $ | 9,862.02 | $ | 86.58 |
| Loans and leases | Loans and leases | $ | 337 | | Price-based | Price | $ | — | $ | 109.75 | $ | 81.61 | Loans and leases | $ | 225 | | Price-based | Price | $ | 73.95 | $ | 103.41 | $ | 89.02 |
|
| | As of September 30, 2022 | Fair value(1) (in millions) | Methodology | Input | Low(2)(3) | High(2)(3) | Weighted average(4) | |
| $ | 297 | | Model-based | Equity volatility | 58.44 | % | 103.57 | % | 72.59 | % | |
| As of September 30, 2023 | | As of September 30, 2023 | Fair value(1) (in millions) | Methodology | Input | Low(2)(3) | High(2)(3) | Weighted average(4) |
| | Forward price | 17.53 | % | 524.16 | % | 148.69 | % | | Forward price | 20.39 | % | 534.83 | % | 159.35 | % |
| | Commodity volatility | 15.49 | % | 133.07 | % | 25.90 | % | | Commodity volatility | 7.80 | % | 104.90 | % | 25.13 | % |
| | Commodity correlation | (50.34) | % | 93.35 | % | 26.54 | % | | Commodity correlation | (39.67) | % | 93.50 | % | (0.46) | % |
| Mortgage servicing rights | Mortgage servicing rights | $ | 571 | | Cash flow | Yield | 0.80 | % | 13.20 | % | 5.97 | % | Mortgage servicing rights | $ | 641 | | Cash flow | Yield | 0.50 | % | 12.00 | % | 5.68 | % |
| | 76 | | Model-based | WAL | 4.07 years | 10.23 years | 8.19 years | | WAL | 3.87 years | 9.59 years | 8.06 years |
| Liabilities | Liabilities | | Liabilities | |
| Interest-bearing deposits | Interest-bearing deposits | $ | 16 | | Model-based | IR normal volatility | 0.23 | % | 0.64 | % | 0.42 | % | Interest-bearing deposits | $ | 85 | | Model-based | Price | $ | 100.00 | | $ | 100.00 | | $ | 100.00 | |
| | Forward price | 100.00 | % | 100.00 | % | 100.00 | % | |
| | | 70 | | Price-based | Forward price | 100 | % | 100 | % | 100 | % |
| | | Equity forward | 100 | % | 117 | % | 103 | % |
| Securities loaned and sold under agreements to repurchase | Securities loaned and sold under agreements to repurchase | $ | 997 | | Model-based | Interest rate | 3.43 | % | 4.43 | % | 4.08 | % | Securities loaned and sold under agreements to repurchase | $ | 481 | | Model-based | Interest rate | 4.66 | % | 5.59 | % | 4.71 | % |
| Trading account liabilities | Trading account liabilities | | Trading account liabilities | |
| Securities sold, not yet purchased and other trading liabilities | Securities sold, not yet purchased and other trading liabilities | $ | 86 | | Price-based | Price | $ | — | $ | 12,100 | $ | 1,085 | Securities sold, not yet purchased and other trading liabilities | $ | 85 | | Price-based | Price | $ | — | $ | 259.90 | $ | 78.73 |
| | Short-term borrowings and long-term debt | Short-term borrowings and long-term debt | $ | 31,745 | | Model-based | IR normal volatility | 0.33 | % | 20.00 | % | 1.57 | % | Short-term borrowings and
long-term debt | $ | 33,941 | | Model-based | IR normal volatility | 0.33 | % | 20.00 | % | 1.35 | % |
| Equity volatility | — | % | 301.69 | % | 34.49 | % | |
| | As of December 31, 2021 | Fair value(1) (in millions) | Methodology | Input | Low(2)(3) | High(2)(3) | Weighted average(4) | |
| As of December 31, 2022 | | As of December 31, 2022 | Fair value(1) (in millions) | Methodology | Input | Low(2)(3) | High(2)(3) | Weighted average(4) |
| Assets | Assets | | Assets | |
| Securities borrowed and purchased under agreements to resell | Securities borrowed and purchased under agreements to resell | $ | 231 | | Model-based | Credit spread | 15 bps | Securities borrowed and purchased under agreements to resell | $ | 146 | | Model-based | Credit spread | 15 bps |
| | Interest rate | 0.26 | % | 0.72 | % | 0.50 | % | | Interest rate | 2.61 | % | 2.61 | % | 2.61 | % |
| Mortgage-backed securities | Mortgage-backed securities | $ | 279 | | Price-based | Price | $ | 4 | | $ | 118 | | $ | 79 | | Mortgage-backed securities | $ | 228 | | Price-based | Price | $ | 1.04 | | $ | 99.71 | | $ | 51.51 | |
| | 526 | | Yield analysis | Yield | 1.43 | % | 23.79 | % | 7.25 | % | | 732 | | Yield analysis | Yield | 4.41 | % | 20.30 | % | 9.74 | % |
| State and municipal, foreign government, corporate and other debt securities | State and municipal, foreign government, corporate and other debt securities | $ | 2,264 | | Price-based | Price | $ | — | | $ | 995 | | $ | 193 | | State and municipal, foreign government, corporate and other debt securities | $ | 2,360 | | Price-based | Price | $ | 0.01 | | $ | 994.68 | | $ | 245.85 | |
| 415 | | Model-based | Equity volatility | 0.08 | % | 290.64 | % | 53.94 | % | |
Marketable equity securities(5) | Marketable equity securities(5) | $ | 128 | | Price-based | Price | $ | — | | $ | 73,000 | | $ | 6,477 | | Marketable equity securities(5) | $ | 147 | | Price-based | Price | $ | — | | $ | 9,087.76 | | $ | 114.29 | |
| | 43 | | Model-based | WAL | 1.73 years | | 31 | | Model-based | WAL | 2.24 years |
| | Recovery (in millions) | $ | 7,148 | | $ | 7,148 | | $ | 7,148 | | | Recovery (in millions) | $ | 7,148 | | $ | 7,148 | | $ | 7,148 | |
| Asset-backed securities | Asset-backed securities | $ | 386 | | Price-based | Price | $ | 5 | | $ | 754 | | $ | 87 | | Asset-backed securities | $ | 304 | | Price-based | Price | $ | 10.50 | | $ | 145.00 | | $ | 74.97 | |
| | 208 | | Yield analysis | Yield | 2.43 | % | 19.35 | % | 8.18 | % | | 308 | | Yield analysis | Yield | 5.76 | % | 18.58 | % | 9.34 | % |
| Non-marketable equities | Non-marketable equities | $ | 121 | | Price-based | Illiquidity discount | 10.00 | % | 36.00 | % | 26.43 | % | Non-marketable equities | $ | 287 | | Comparables analysis | Illiquidity discount | 8.60 | % | 17.00 | % | 10.16 | % |
| | 112 | | Comparables analysis | PE ratio | 11.00x | 29.00x | 15.42x | | 101 | | Price-based | PE ratio | 14.00x | 15.70x | 15.16x |
| | 83 | | Model-based | Price | $ | 3 | | $ | 2,601 | | $ | 2,029 | | | Cost of capital | 8.10 | % | 17.50 | % | 10.44 | % |
| | Adjustment factor | 0.33x | 0.44x | 0.34x | | Revenue multiple | 3.60x | 13.90x | 12.40x |
| Revenue multiple | 19.80x | 30.00x | 20.48x | |
| Cost of capital | 17.50 | % | 20.00 | % | 17.57 | % | |
Derivatives—gross(6) | Derivatives—gross(6) | | Derivatives—gross(6) | |
| Interest rate contracts (gross) | Interest rate contracts (gross) | $ | 6,054 | | Model-based | IR normal volatility | 0.24 | % | 0.94 | % | 0.70 | % | Interest rate contracts (gross) | $ | 7,108 | | Model-based | IR normal volatility | 0.33 | % | 1.82 | % | 0.96 | % |
| Foreign exchange contracts (gross) | Foreign exchange contracts (gross) | $ | 1,364 | | Model-based | IR normal volatility | 0.24 | % | 0.74 | % | 0.58 | % | Foreign exchange contracts (gross) | $ | 1,437 | | Model-based | IR normal volatility | 0.33 | % | 1.47 | % | 0.67 | % |
| | FX volatility | 2.13 | % | 107.42 | % | 11.21 | % | | IR basis | (4.23) | % | 9.68 | % | (0.03) | % |
| | Credit spread | 140 bps | 696 bps | 639 bps | | Equity volatility | 0.05 | % | 300.72 | % | 33.91 | % |
| | | Credit spread | 116 bps | 626 bps | 594 bps |
Equity contracts (gross)(7) | Equity contracts (gross)(7) | $ | 4,690 | | Model-based | Equity volatility | 0.08 | % | 290.64 | % | 47.67 | % | Equity contracts (gross)(7) | $ | 4,430 | | Model-based | Equity volatility | 0.05 | % | 300.72 | % | 41.47 | % |
| | Equity forward | 57.99 | % | 165.83 | % | 89.45 | % | | Equity forward | 68.34 | % | 271.61 | % | 103.50 | % |
| | Equity-FX correlation | (95.00) | % | 80.00 | % | (16.00) | % | | Equity-FX correlation | (95.00) | % | 50.00 | % | (16.33) | % |
| | | Equity-Equity correlation | (3.98) | % | 98.68 | % | 85.63 | % |
| | | WAL | 2.24 years |
| | | Recovery (in millions) | $ | 7,148 | | $ | 7,148 | | $ | 7,148 | |
| | | Equity-IR correlation | (18.83) | % | 60.00 | % | 32.37 | % |
| | | Equity-Equity correlation | (6.49) | % | 99.00 | % | 85.61 | % | | | | | | | | | | | | | | | | | | | | |
| Commodity and other contracts (gross) | Commodity and other contracts (gross) | $ | 3,172 | | Model-based | Forward price | 8.00 | % | 599.44 | % | 123.22 | % | Commodity and other contracts (gross) | $ | 2,724 | | Model-based | Forward price | 14.27 | % | 385.50 | % | 106.08 | % |
| | Commodity volatility | 10.87 | % | 188.30 | % | 26.85 | % | | Commodity volatility | 10.43 | % | 151.50 | % | 33.55 | % |
| | Commodity correlation | (50.52) | % | 89.83 | % | (7.11) | % | | Commodity correlation | (32.00) | % | 91.94 | % | 36.70 | % |
| Credit derivatives (gross) | Credit derivatives (gross) | $ | 1,480 | | Model-based | Credit spread | 1.00 bps | 874.72 bps | 68.83 bps | Credit derivatives (gross) | $ | 1,520 | | Model-based | Credit spread | 2.50 bps | 955.10 bps | 101.27 bps |
| | 427 | | Price-based | Recovery rate | 20.00 | % | 75.00 | % | 44.72 | % | | 439 | | Price-based | Recovery rate | 25.00 | % | 75.00 | % | 42.27 | % |
| | Upfront points | 2.74 | % | 99.96 | % | 59.37 | % | | Credit correlation | 25.00 | % | 80.00 | % | 42.38 | % |
| | Price | $ | 40 | | $ | 103 | | $ | 80 | | | Price | $ | 31.71 | | $ | 99.00 | | $ | 78.75 | |
| | Credit correlation | 30.00 | % | 80.00 | % | 54.57 | % | | Credit spread volatility | 35.58 | % | 64.79 | % | 40.47 | % |
| | Non-trading derivatives and other financial assets and liabilities measured on a recurring basis (gross) | Non-trading derivatives and other financial assets and liabilities measured on a recurring basis (gross) | $ | 69 | | Price-based | Price | $ | 94 | | $ | 2,598 | | $ | 591 | | Non-trading derivatives and other financial assets and liabilities measured on a recurring basis (gross) | $ | 57 | | Price-based | Price | $ | 80.16 | | $ | 105.32 | | $ | 92.65 | |
| Loans and leases | Loans and leases | $ | 691 | | Model-based | Equity volatility | 22.48 | % | 85.44 | % | 50.56 | % | Loans and leases | $ | 1,059 | | Model-based | Equity volatility | 0.05 | % | 300.72 | % | 42.62 | % |
| | Forward price | 26.95 | % | 333.08 | % | 106.97 | % | | 304 | | Price-based | Forward price | 14.27 | % | 324.85 | % | 105.07 | % |
| | Commodity volatility | 10.87 | % | 188.30 | % | 26.85 | % | | Price | $ | 0.01 | | $ | 100.53 | | $ | 84.77 | |
| | Commodity correlation | (50.52) | % | 89.83 | % | (7.11) | % | | Equity forward | 68.34 | % | 271.61 | % | 103.49 | % |
| Mortgage servicing rights | Mortgage servicing rights | $ | 331 | | Cash flow | Yield | (1.20) | % | 12.10 | % | 4.51 | % | Mortgage servicing rights | $ | 580 | | Cash flow | Yield | (0.40) | % | 13.20 | % | 5.36 | % |
| | 73 | | Model-based | WAL | 2.75 years | 5.86 years | 5.14 years | | 84 | | Model-based | WAL | 3.92 years | 9.33 years | 7.71 years |
| Liabilities | Liabilities | | Liabilities | |
| Interest-bearing deposits | Interest-bearing deposits | $ | 183 | | Model-based | IR normal volatility | 0.34 | % | 0.88 | % | 0.68 | % | Interest-bearing deposits | $ | 15 | | Model-based | Forward price | 100.00 | % | 101.30 | % | 100.07 | % |
| Equity volatility | 0.08 | % | 290.64 | % | 54.05 | % | |
| Equity forward | 57.99 | % | 165.83 | % | 89.39 | % | |
| Securities loaned and sold under agreements to repurchase | Securities loaned and sold under agreements to repurchase | $ | 643 | | Model-based | Interest rate | 0.12 | % | 1.95 | % | 1.47 | % | Securities loaned and sold under agreements to repurchase | $ | 970 | | Model-based | Interest rate | 4.01 | % | 4.97 | % | 4.07 | % |
| Trading account liabilities | Trading account liabilities | | Trading account liabilities | |
| Securities sold, not yet purchased and other trading liabilities | Securities sold, not yet purchased and other trading liabilities | $ | 63 | | Price-based | Price | $ | — | | $ | 12,875 | | $ | 1,707 | | Securities sold, not yet purchased and other trading liabilities | $ | 47 | | Price-based | Price | $ | — | | $ | 9,087.76 | | $ | 41.22 | |
| | | 6 | Model-based | FX volatility | 2.00 | % | 40.00 | % | 12.85 | % |
| Short-term borrowings and long-term debt | Short-term borrowings and long-term debt | $ | 25,514 | | Model-based | IR normal volatility | 0.07 | % | 0.88 | % | 0.60 | % | Short-term borrowings and
long-term debt | $ | 36,155 | | Model-based | IR normal volatility | 0.33 | % | 1.82 | % | 0.89 | % |
| Equity volatility | 0.08 | % | 290.64 | % | 53.21 | % | |
| Equity-IR correlation | (3.53) | % | 60.00 | % | 32.12 | % | |
| Equity-FX correlation | (95.00) | % | 80.00 | % | (15.98) | % | |
| FX volatility | 0.06 | % | 41.76 | % | 9.38 | % | |
(1)The tables above include the fair values for the items listed and may not foot to the total population for each category.
(2)Some inputs are shown as zero due to rounding.
(3)When the low and high inputs are the same, there is either a constant input applied to all positions, or the methodology involving the input applies to only one large position.
(4)Weighted averages are calculated based on the fair values of the instruments.
(5)For equity securities, the price inputs are expressed on an absolute basis, not as a percentage of the notional amount.
(6)Both trading and non-trading account derivatives—assets and liabilities—are presented on a gross absolute value basis.
(7)Includes hybrid products.
Items Measured at Fair Value on a Nonrecurring Basis
Certain assets and liabilities are measured at fair value on a nonrecurring basis and, therefore, are not included in the tables above. These include assets measured at cost that have been written down to fair value during the periods as a result of an impairment. These also include non-marketable equity securities that have been measured using the measurement alternative and are either (i) written down to fair value during the periods as a result of an impairment or (ii) adjusted upward or downward to fair value as a result of a transaction observed during the periods for an identical or similar investment in the same issuer. In addition, these assets include loans held-for-sale and other real estate owned that are measured at the lower of cost or market value.
The following tables present the carrying amounts of all assets that were still held for which a nonrecurring fair value measurement was recorded:
| | In millions of dollars | In millions of dollars | Fair value | Level 2 | Level 3 | In millions of dollars | Fair value | Level 2 | Level 3 |
| September 30, 2022 | | | | |
| September 30, 2023 | | September 30, 2023 | | | |
Loans HFS(1) | Loans HFS(1) | $ | 3,175 | | $ | 1,151 | | $ | 2,024 | | Loans HFS(1) | $ | 1,547 | | $ | 354 | | $ | 1,193 | |
| Other real estate owned | Other real estate owned | 3 | | — | | 3 | | Other real estate owned | 2 | | — | | 2 | |
Loans(2) | Loans(2) | 126 | | — | | 126 | | Loans(2) | 407 | | — | | 407 | |
| | Non-marketable equity securities measured using the measurement alternative | Non-marketable equity securities measured using the measurement alternative | 70 | | — | | 70 | | Non-marketable equity securities measured using the measurement alternative | 60 | | — | | 60 | |
| Total assets at fair value on a nonrecurring basis | Total assets at fair value on a nonrecurring basis | $ | 3,374 | | $ | 1,151 | | $ | 2,223 | | Total assets at fair value on a nonrecurring basis | $ | 2,016 | | $ | 354 | | $ | 1,662 | |
| | In millions of dollars | In millions of dollars | Fair value | Level 2 | Level 3 | In millions of dollars | Fair value | Level 2 | Level 3 |
| December 31, 2021 | | | | |
| December 31, 2022 | | December 31, 2022 | | | |
Loans HFS(1) | Loans HFS(1) | $ | 2,298 | | $ | 986 | | $ | 1,312 | | Loans HFS(1) | $ | 2,336 | | $ | 457 | | $ | 1,879 | |
| Other real estate owned | Other real estate owned | 11 | | — | | 11 | | Other real estate owned | 1 | | — | | 1 | |
Loans(2) | Loans(2) | 144 | | — | | 144 | | Loans(2) | 69 | | — | | 69 | |
| Non-marketable equity securities measured using the measurement alternative | Non-marketable equity securities measured using the measurement alternative | 655 | | 104 | | 551 | | Non-marketable equity securities measured using the measurement alternative | 597 | | — | | 597 | |
| Total assets at fair value on a nonrecurring basis | Total assets at fair value on a nonrecurring basis | $ | 3,108 | | $ | 1,090 | | $ | 2,018 | | Total assets at fair value on a nonrecurring basis | $ | 3,003 | | $ | 457 | | $ | 2,546 | |
(1)Net of fair valuemark-to-market amounts on the unfunded portion of loans HFS recognized as Other liabilities on the Consolidated Balance Sheet.
(2)Represents impaired loans held for investment whose carrying amount is based on the fair value of the underlying collateral less costs to sell, primarily real estate.
Valuation Techniques and Inputs for Level 3 Nonrecurring Fair Value Measurements
The following tables present the valuation techniques covering the majority of Level 3 nonrecurring fair value measurements and the most significant unobservable inputs used in those measurements:
| | As of September 30, 2022 | Fair value(1) (in millions) | Methodology | Input | Low(2) | High | Weighted average(3) | |
| Loans held-for-sale | $ | 2,024 | | Price-based | Price | $ | 80.40 | | $ | 100.00 | | $ | 91.24 | | |
| As of September 30, 2023 | | As of September 30, 2023 | Fair value(1) (in millions) | Methodology | Input | Low(2) | High | Weighted average(3) |
| Loans HFS | | Loans HFS | $ | 1,192 | | Price-based | Price | $ | 75.00 | | $ | 99.66 | | $ | 93.93 | |
| Other real estate owned | Other real estate owned | $ | 1 | | Price-based | Appraised value(4) | $ | 10,200 | | $ | 990,910 | | $ | 730,901 | | Other real estate owned | $ | 2 | | Price-based | Appraised value(4) | $ | 51,210 | | $ | 627,594 | | $ | 380,813 | |
| 1 | | Recovery analysis | | |
Loans(5) | Loans(5) | $ | 126 | | Recovery analysis | Appraised value(4) | $ | 12,000 | | $ | 17,525,636 | | $ | 2,578,191 | | Loans(5) | $ | 375 | | Recovery analysis | Appraised value(4) | $ | 12,000 | | $ | 271,763,454 | | $ | 208,321,959 | |
| Non-marketable equity securities measured using the measurement alternative | Non-marketable equity securities measured using the measurement alternative | $ | 40 | | Price-based | Price | $ | 3.35 | | $ | 196.50 | | $ | 96.21 | | Non-marketable equity securities measured using the measurement alternative | $ | 42 | | Price-based | Price | $ | 3.04 | | $ | 28.21 | | $ | 11.06 | |
| | 29 | | Comparable analysis | Revenue multiple | 9.26x | 73.10x | 31.10x | | 17 | | Comparable analysis | Revenue multiple | 2.60x | 35.70x | 16.13x |
| Discount to price percentage | 28.00 | % | 28.00 | % | 28.00 | % | |
| | As of December 31, 2021 | Fair value(1) (in millions) | Methodology | Input | Low(2) | High | Weighted average(3) | |
| As of December 31, 2022 | | As of December 31, 2022 | Fair value(1) (in millions) | Methodology | Input | Low(2) | High | Weighted average(3) |
| Loans HFS | Loans HFS | $ | 1,312 | | Price-based | Price | $ | 89 | | $ | 100 | | $ | 99 | | Loans HFS | $ | 1,830 | | Price-based | Price | $ | 0.88 | | $ | 100.23 | | $ | 65.91 | |
| Other real estate owned | Other real estate owned | $ | 4 | | Price-based | Appraised value(4) | $ | 14,000 | | $ | 2,392,464 | | $ | 1,660,120 | | Other real estate owned | $ | 1 | | Price-based | Appraised value(4) | $ | 30,000 | | $ | 441,750 | | $ | 310,552 | |
| 5 | | Recovery analysis | | |
Loans(5) | Loans(5) | $ | 120 | | Recovery analysis | Appraised value(4) | $ | 10,000 | | $ | 3,900,000 | | $ | 247,018 | | Loans(5) | $ | 45 | | Recovery analysis | Appraised value(4) | $ | 12,000 | | $ | 14,022,820 | | $ | 3,714,342 | |
| | 24 | | Price-based | Price | 3 | | 75 | | 35 | | | 24 | | Appraised value | |
| | Recovery rate | 84.00 | % | 100.00 | % | 84.00 | % | |
| Non-marketable equity securities measured using the measurement alternative | Non-marketable equity securities measured using the measurement alternative | $ | 551 | | Price-based | Price | $ | 6 | | $ | 1,339 | | $ | 52 | | Non-marketable equity securities measured using the measurement alternative | $ | 234 | | Comparable analysis | Revenue multiple | 4.95x | 73.10x | 19.68x |
| | | 363 | | Price-based | Price | $ | 0.46 | | $ | 2,416.43 | | $ | 557.86 | |
| |
(1)The tabletables above includesinclude the fair values for the items listed and may not foot to the total population for each category.
(2)Some inputs are shown as zero due to rounding.
(3)Weighted averages are calculated based on the fair values of the instruments.
(4)Appraised values are disclosed in whole dollars.
(5)Represents impaired loans held for investment whose carrying amount is based on the fair value of the underlying collateral less costs to sell, primarily real estate.
Nonrecurring Fair Value Changes
The following table presents total nonrecurring fair value measurements for the period, included in earnings, attributable to the change in fair value relating to assets that were still held:
| | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | 2022 | 2021 | 2022 | 2021 |
| Loans HFS | $ | (250) | | $ | (13) | | $ | (413) | | $ | (22) | |
| Other real estate owned | — | | — | | — | | — | |
Loans(1) | 10 | | (10) | | 17 | | 33 | |
| Non-marketable equity securities measured using the measurement alternative | (14) | | 72 | | 114 | | 363 | |
| | | | |
| Total nonrecurring fair value gains (losses) | $ | (254) | | $ | 49 | | $ | (282) | | $ | 374 | |
| | | | | | | | | | | | | | |
| Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | 2023 | 2022 | 2023 | 2022 |
| Loans HFS | $ | — | | $ | (250) | | $ | 6 | | $ | (413) | |
| Other real estate owned | — | | — | | — | | — | |
Loans(1) | (82) | | 10 | | (110) | | 17 | |
| Non-marketable equity securities measured using the measurement alternative | (12) | | (14) | | (69) | | 114 | |
| | | | |
| Total nonrecurring fair value gains (losses) | $ | (94) | | $ | (254) | | $ | (173) | | $ | (282) | |
(1)Represents loans held for investment whose carrying amount is based on the fair value of the underlying collateral less costs to sell, primarily real estate.
Estimated Fair Value of Financial Instruments Not Carried at Fair Value
The following tables present the carrying value and fair value of Citigroup’s financial instruments that are not carried at fair value. The tables below therefore exclude items measured at fair value on a recurring basis presented in the tables above.
| | | | September 30, 2022 | Estimated fair value | | September 30, 2023 | Estimated fair value |
| | | Carrying
value | Estimated
fair value | | | Carrying
value | Estimated
fair value | |
| In billions of dollars | In billions of dollars | Level 1 | Level 2 | Level 3 | In billions of dollars | Level 1 | Level 2 | Level 3 |
| Assets | Assets | | | | | Assets | | | | |
| Investments, net of allowance | $ | 273.3 | | $ | 245.4 | | $ | 122.2 | | $ | 120.1 | | $ | 3.1 | | |
HTM debt securities, net of allowance(1) | | HTM debt securities, net of allowance(1) | $ | 264.9 | | $ | 236.8 | | $ | 123.7 | | $ | 110.5 | | $ | 2.6 | |
| Securities borrowed and purchased under agreements to resell | Securities borrowed and purchased under agreements to resell | 120.2 | | 120.3 | | — | | 120.3 | | — | | Securities borrowed and purchased under agreements to resell | 128.9 | | 129.0 | | — | | 129.0 | | — | |
Loans(2)(3) | Loans(2)(3) | 625.5 | | 627.2 | | — | | — | | 627.2 | | Loans(2)(3) | 641.1 | | 646.0 | | — | | — | | 646.0 | |
Other financial assets(3)(4) | Other financial assets(3)(4) | 410.9 | | 410.9 | | 281.0 | | 18.6 | | 111.3 | | Other financial assets(3)(4) | 352.4 | | 352.4 | | 236.2 | | 17.8 | | 98.4 | |
| Liabilities | Liabilities | | | | Liabilities | | | |
| Deposits | Deposits | $ | 1,304.0 | | $ | 1,299.4 | | $ | — | | $ | 1,139.5 | | $ | 159.9 | | Deposits | $ | 1,270.8 | | $ | 1,270.1 | | $ | — | | $ | 1,078.5 | | $ | 191.6 | |
| Securities loaned and sold under agreements to repurchase | Securities loaned and sold under agreements to repurchase | 130.3 | | 130.3 | | — | | 130.3 | | — | | Securities loaned and sold under agreements to repurchase | 196.1 | | 196.1 | | — | | 196.1 | | — | |
Long-term debt(4)(5) | Long-term debt(4)(5) | 161.2 | | 154.0 | | — | | 117.2 | | 36.8 | | Long-term debt(4)(5) | 163.1 | | 162.2 | | — | | 153.5 | | 8.7 | |
Other financial liabilities(5)(6) | Other financial liabilities(5)(6) | 157.3 | | 157.3 | | — | | 26.4 | | 130.9 | | Other financial liabilities(5)(6) | 144.8 | | 144.8 | | — | | 34.2 | | 110.6 | |
| | | | December 31, 2021 | Estimated fair value | | December 31, 2022 | Estimated fair value |
| | | Carrying
value | Estimated
fair value | | | Carrying
value | Estimated
fair value | |
| In billions of dollars | In billions of dollars | Level 1 | Level 2 | Level 3 | In billions of dollars | Level 1 | Level 2 | Level 3 |
| Assets | Assets | | | | Assets | | | |
| Investments, net of allowance | $ | 221.9 | | $ | 221.0 | | $ | 111.8 | | $ | 106.4 | | $ | 2.8 | | |
HTM debt securities, net of allowance(1) | | HTM debt securities, net of allowance(1) | $ | 274.3 | | $ | 249.2 | | $ | 123.2 | | $ | 123.1 | | $ | 2.9 | |
| Securities borrowed and purchased under agreements to resell | Securities borrowed and purchased under agreements to resell | 110.8 | | 110.8 | | — | | 106.4 | | 4.4 | | Securities borrowed and purchased under agreements to resell | 125.9 | | 125.9 | | — | | 125.9 | | — | |
Loans(2)(3) | Loans(2)(3) | 644.8 | | 659.6 | | — | | — | | 659.6 | | Loans(2)(3) | 634.5 | | 634.9 | | — | | — | | 634.9 | |
Other financial assets(3)(4) | Other financial assets(3)(4) | 351.9 | | 351.9 | | 242.1 | | 19.9 | | 89.9 | | Other financial assets(3)(4) | 427.1 | | 427.1 | | 320.0 | | 22.0 | | 85.1 | |
| Liabilities | Liabilities | | | | Liabilities | | | |
| Deposits | Deposits | $ | 1,315.6 | | $ | 1,316.2 | | $ | — | | $ | 1,153.9 | | $ | 162.3 | | Deposits | $ | 1,364.1 | | $ | 1,345.4 | | $ | — | | $ | 1,159.4 | | $ | 186.0 | |
| Securities loaned and sold under agreements to repurchase | Securities loaned and sold under agreements to repurchase | 134.6 | | 134.6 | | — | | 134.5 | | 0.1 | | Securities loaned and sold under agreements to repurchase | 131.6 | | 131.6 | | — | | 131.6 | | — | |
Long-term debt(4)(5) | Long-term debt(4)(5) | 171.8 | | 184.6 | | — | | 171.9 | | 12.7 | | Long-term debt(4)(5) | 165.6 | | 160.5 | | — | | 151.1 | | 9.4 | |
Other financial liabilities(5)(6) | Other financial liabilities(5)(6) | 111.1 | | 111.1 | | — | | 17.0 | | 94.1 | | Other financial liabilities(5)(6) | 142.4 | | 142.4 | | — | | 26.5 | | 115.9 | |
(1)Includes $5.4 billion and $5.5 billion of non-marketable equity securities carried at cost at September 30, 2023 and December 31, 2022, respectively.
(2)The carrying value of loans is net of the Allowanceallowance for credit losses on loans of $16.3$17.6 billion for September 30, 20222023 and $16.5$17.0 billion for December 31, 2021.2022. In addition, the carrying values exclude $0.4$0.3 billion and $0.5$0.4 billion of lease finance receivables at September 30, 20222023 and December 31, 2021,2022, respectively.
(2)(3)Includes items measured at fair value on a nonrecurring basis.
(3)(4)Includes cash and due from banks, deposits with banks, brokerage receivables, reinsurance recoverables and other financial instruments included in Other assets on the Consolidated Balance Sheet, for all of which the carrying value is a reasonable estimate of fair value.
(4)(5)The carrying value includes long-term debt balances under qualifying fair value hedges.
(5)(6)Includes brokerage payables, separate and variable accounts, short-term borrowings (carried at cost) and other financial instruments included in Other liabilities on the Consolidated Balance Sheet, for all of which the carrying value is a reasonable estimate of fair value.
The estimated fair values of the Company’s corporate unfunded lending commitments at September 30, 20222023 and December 31, 20212022 were off-balance sheet liabilities of $11.3$8.3 billion and $8.1$13.7 billion, respectively, substantially all of which are classified as Level 3. The Company does not estimate the fair values of consumer unfunded lending commitments, which are generally cancellablecancelable by providing notice to the borrower.
21.23. FAIR VALUE ELECTIONS
The Company may elect to report most financial instruments and certain other items at fair value on an instrument-by-instrument basis with changes in fair value reported in earnings, other than DVA (see below). The election is made upon the initial recognition of an eligible financial asset, financial liability or firm commitment or when certain specified reconsideration events occur. The fair value election may not otherwise be revoked once an election is made. The changes in fair value are recorded in current earnings. Movements in DVA are reported as a component of AOCI. Additional discussion regarding the applicable areas in which fair value elections were made is presented in Note 20.
The Company has elected fair value accounting for its mortgage servicing rights (MSRs). See Note 1820 for additional details on Citi’s MSRs. Additional discussion regarding other applicable areas in which fair value elections were made is presented in Note 22.
The following table presents the changes in fair value of those items for which the fair value option has been elected:
| | | Changes in fair value—gains (losses) | | Changes in fair value—gains (losses) |
| | | Three Months Ended September 30, | Nine Months Ended September 30, | | Three Months Ended September 30, | Nine Months Ended September 30, |
| In millions of dollars | In millions of dollars | 2022 | 2021 | 2022 | 2021 | In millions of dollars | 2023 | 2022 | 2023 | 2022 |
| Assets | Assets | | | | Assets | | | |
| Securities borrowed and purchased under agreements to resell | Securities borrowed and purchased under agreements to resell | $ | (82) | | $ | (28) | | $ | (165) | | $ | (64) | | Securities borrowed and purchased under agreements to resell | $ | 69 | | $ | (82) | | $ | 59 | | $ | (165) | |
| Trading account assets | Trading account assets | (69) | | (2) | | (307) | | 151 | | Trading account assets | (14) | | (69) | | 65 | | (307) | |
| | Loans | Loans | | | | Loans | | | |
| Certain corporate loans | Certain corporate loans | (372) | | (292) | | (2,227) | | 376 | | Certain corporate loans | 1,036 | | 372 | | 1,362 | | (2,227) | |
| Consumer loans | — | | — | | (1) | | — | | |
| Certain consumer loans | | Certain consumer loans | (10) | | — | | (9) | | (1) | |
| Total loans | Total loans | $ | (372) | | $ | (292) | | $ | (2,228) | | $ | 376 | | Total loans | $ | 1,026 | | $ | 372 | | $ | 1,353 | | $ | (2,228) | |
| Other assets | Other assets | | | | | Other assets | | | | |
| MSRs | MSRs | $ | 37 | | $ | (3) | | $ | 195 | | $ | 49 | | MSRs | $ | 42 | | $ | 37 | | $ | 61 | | $ | 195 | |
Certain mortgage loans HFS(1) | Certain mortgage loans HFS(1) | (110) | | 25 | | (440) | | 69 | | Certain mortgage loans HFS(1) | (28) | | (110) | | (38) | | (440) | |
| Total other assets | Total other assets | $ | (73) | | $ | 22 | | $ | (245) | | $ | 118 | | Total other assets | $ | 14 | | $ | (73) | | $ | 23 | | $ | (245) | |
| Total assets | Total assets | $ | (596) | | $ | (300) | | $ | (2,945) | | $ | 581 | | Total assets | $ | 1,095 | | $ | (596) | | $ | 1,500 | | $ | (2,945) | |
| Liabilities | Liabilities | | | | | Liabilities | | | | |
| Interest-bearing deposits | Interest-bearing deposits | $ | 133 | | $ | 54 | | $ | 10 | | $ | (39) | | Interest-bearing deposits | $ | 18 | | $ | 133 | | $ | (34) | | $ | 10 | |
| Securities loaned and sold under agreements to repurchase | Securities loaned and sold under agreements to repurchase | 63 | | 19 | | 159 | | 37 | | Securities loaned and sold under agreements to repurchase | (63) | | 63 | | (82) | | 159 | |
| Trading account liabilities | Trading account liabilities | 208 | | 5 | | (241) | | 15 | | Trading account liabilities | (151) | | 208 | | 1 | | (241) | |
Short-term borrowings(2) | Short-term borrowings(2) | 61 | | 140 | | 1,257 | | 332 | | Short-term borrowings(2) | 144 | | 61 | | 232 | | 1,257 | |
Long-term debt(2) | Long-term debt(2) | 4,922 | | 975 | | 20,635 | | 542 | | Long-term debt(2) | 2,443 | | 4,922 | | (4,053) | | 20,635 | |
| Total liabilities | Total liabilities | $ | 5,387 | | $ | 1,193 | | $ | 21,820 | | $ | 887 | | Total liabilities | $ | 2,391 | | $ | 5,387 | | $ | (3,936) | | $ | 21,820 | |
(1)Includes gains (losses) associated with interest rate lock commitments for thoseoriginated loans that have been originated andfor which the Company has elected the fair value option.
(2)Includes DVA that is included in AOCI. See Notes 1718 and 20.22.
Own Debt Valuation Adjustments (DVA)
Own debt valuation adjustments are recognized on Citi’s liabilities for which the fair value option has been elected using Citi’s credit spreads observed in the bond market. Changes in fair value of fair value option liabilities related to changes in Citigroup’s own credit spreads (DVA) are reflected as a component of AOCI. See Note 18 for additional information.
Among other variables, the fair value of liabilities for which the fair value option has been elected (other than non-recourse debt and similar liabilities) is impacted by the narrowing or widening of the Company’s credit spreads.
The estimated changes in the fair value of these non-derivative liabilities due to such changes in the Company’s own credit spread (or instrument-specific credit risk) were a gain of $1,159$395 million and a lossgain of $107$1,159 million for the three months ended September 30, 2023 and 2022, respectively, and 2021, respectively,a loss of $(875) million and a gain of $4,800 million and a loss of $256 million for the nine months ended September 30, 20222023 and 2021,2022, respectively. Changes in fair value resulting from changes in instrument-specific credit risk were estimated by incorporating the Company’s current credit spreads observable in the bond market into the relevant valuation technique used to value each liability as described above.
The Fair Value Option for Financial Assets and Financial Liabilities
Selected Portfolios of Securities Purchased Under Agreements to Resell, Securities Borrowed, Securities Sold Under Agreements to Repurchase, Securities Loaned and Certain Uncollateralized Short-Term Borrowings
The Company elected the fair value option for certain portfolios of fixed income securities purchased under agreements to resell and fixed income securities sold under agreements to repurchase, securities borrowed, securities loaned and certain uncollateralized short-term borrowings held primarily by broker-dealer entities in the United States, the United Kingdom and Japan. In each case, the election was made because the related interest rate risk is managed on a portfolio basis, primarily with offsetting derivative instruments that are accounted for at fair value through earnings.
Changes in fair value for transactions in these portfolios are recorded in Principal transactions. The related interest revenue and interest expense are measured based on the contractual rates specified in the transactions and are reported as Interest revenue and Interest expense in the Consolidated Statement of Income.
Certain Loans and Other Credit Products
Citigroup has also elected the fair value option for certain other originated and purchased loans, including certain unfunded loan products, such as guarantees and letters of credit, executed by Citigroup’s lending and trading businesses. None of these credit products are highly leveraged financing commitments. Significant groups of transactions include loans and unfunded loan products that are expected to be either sold or securitized in the near term, or transactions where the economic risks are hedged with derivative instruments, such as purchased credit default swaps or total return swaps where the Company pays the total return on the underlying loans to a third party. Citigroup has elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplifications. Fair value was not elected for most lending transactions across the Company.
The following table provides information about certain credit products carried at fair value:
| | | | September 30, 2022 | December 31, 2021 | | September 30, 2023 | December 31, 2022 |
| In millions of dollars | In millions of dollars | Trading assets | Loans | Trading assets | Loans | In millions of dollars | Trading assets | Loans | Trading assets | Loans |
| Carrying amount reported on the Consolidated Balance Sheet | Carrying amount reported on the Consolidated Balance Sheet | $ | 6,436 | | $ | 3,879 | | $ | 9,530 | | $ | 6,082 | | Carrying amount reported on the Consolidated Balance Sheet | $ | 4,340 | | $ | 7,411 | | $ | 6,011 | | $ | 5,360 | |
| Aggregate unpaid principal balance in excess of (less than) fair value | Aggregate unpaid principal balance in excess of (less than) fair value | 434 | | (97) | | (100) | | 226 | | Aggregate unpaid principal balance in excess of (less than) fair value | 120 | | 60 | | 167 | | 51 | |
| Balance of non-accrual loans or loans more than 90 days past due | Balance of non-accrual loans or loans more than 90 days past due | — | | 148 | | — | | 1 | | Balance of non-accrual loans or loans more than 90 days past due | — | | 1 | | — | | 2 | |
| Aggregate unpaid principal balance in excess of (less than) fair value for non-accrual loans or loans more than 90 days past due | Aggregate unpaid principal balance in excess of (less than) fair value for non-accrual loans or loans more than 90 days past due | — | | — | | — | | — | | Aggregate unpaid principal balance in excess of (less than) fair value for non-accrual loans or loans more than 90 days past due | — | | 1 | | — | | — | |
In addition to the amounts reported above, $777$541 million and $719$729 million of unfunded commitments related to certain credit products selected for fair value accounting were outstanding as of September 30, 20222023 and December 31, 2021,2022, respectively.
Changes in the fair value of funded and unfunded credit products are classified in Principal transactions in Citi’s Consolidated Statement of Income. Related interest revenue is measured based on the contractual interest rates and reported as Interest revenue on Trading account assets or loan interest depending on the balance sheet classifications of the credit products. The changes in fair value for the three months ended September 30, 20222023 and 20212022 due to instrument-specific credit risk totaled to lossesa loss of $(69)$(27) million and $(10)$(69) million, respectively. Changes in fair value due to instrument-specific credit risk are estimated based on changes in borrower-specific credit spreads and recovery assumptions.
Certain Investments in Unallocated Precious Metals
Citigroup invests in unallocated precious metals accounts (gold,(e.g., gold, silver, platinum and palladium) as part of its commodity and foreign currency trading activities or to economically hedge certain exposures from issuing structured liabilities.activities. Under ASC 815, the investment is bifurcated into a debt host contract and a commodity forward derivative instrument. Citigroup elects the fair value option for the debt host contract, and reports the debt host contract within Trading account assets on the Company’s Consolidated Balance Sheet.
The total carrying amount of debt host contracts across unallocated precious metals accounts was approximately $0.2$0.4 billion and $0.3 billion at September 30, 20222023 and December 31, 2021,2022, respectively. The amounts are expected to fluctuate based on trading activity in future periods.
As part of its commodity and foreign currency trading activities, Citi trades unallocated precious metals investments and executes forward purchase and forward sale derivative contracts with trading counterparties. When Citi sells an unallocated precious metals investment, Citi’s receivable from its depository bank is repaid and Citi derecognizes its investment in the unallocated precious metal. The forward purchase or sale contract with the trading counterparty indexed to unallocated precious metals is accounted for as a derivative, at fair value through earnings. As of September 30, 2022, there were approximately $16.4 billion and $12.4 billion of notional amounts of such forward purchase and forward sale derivative contracts outstanding, respectively.
Certain Investments in Private Equity and
Real Estate Ventures
Citigroup invests in private equity and real estate ventures for the purpose of earning investment returns and for capital appreciation. The Company has elected the fair value option for certain of these ventures, because such investments are considered similar to many private equity or hedge fund activities in Citi’s investment companies, which are reported at fair value. The fair value option brings consistency in the accounting and evaluation of these investments. All investments (debt and equity) in such private equity and real estate entities are accounted for at fair value. These investments are classified as Investments on Citigroup’s Consolidated Balance Sheet.
Changes in the fair values of these investments are classified in Other revenue in the Company’s Consolidated Statement of Income.
Certain Mortgage Loans Held-for-Sale (HFS)
Citigroup has elected the fair value option for certain purchased and originated prime fixed-rate and conforming adjustable-rate first mortgage loans HFS. These loans are intended for sale or securitization and are economically hedged with derivative instruments. The Company has elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplifications.
The following table provides information about certain mortgage loans HFS carried at fair value:
| | In millions of dollars | In millions of dollars | September 30,
2022 | December 31, 2021 | In millions of dollars | September 30,
2023 | December 31, 2022 |
| Carrying amount reported on the Consolidated Balance Sheet | Carrying amount reported on the Consolidated Balance Sheet | $ | 1,481 | | $ | 3,035 | | Carrying amount reported on the Consolidated Balance Sheet | $ | 551 | | $ | 793 | |
| Aggregate fair value in excess of (less than) unpaid principal balance | Aggregate fair value in excess of (less than) unpaid principal balance | (53) | | 70 | | Aggregate fair value in excess of (less than) unpaid principal balance | (17) | | (10) | |
| Balance of non-accrual loans or loans more than 90 days past due | Balance of non-accrual loans or loans more than 90 days past due | 4 | | — | | Balance of non-accrual loans or loans more than 90 days past due | 3 | | 1 | |
| Aggregate unpaid principal balance in excess of fair value for non-accrual loans or loans more than 90 days past due | Aggregate unpaid principal balance in excess of fair value for non-accrual loans or loans more than 90 days past due | — | | — | | Aggregate unpaid principal balance in excess of fair value for non-accrual loans
or loans more than 90 days past due | — | | — | |
The changes in the fair values of these mortgage loans are reported in Other revenue in the Company’s Consolidated Statement of Income. There was no net change in fair value during the nine months ended September 30, 20222023 and 20212022 due to instrument-specific credit risk. Changes in fair value due to instrument-specific credit risk are estimated based on changes in the borrower default, prepayment and recovery forecasts in addition to instrument-specific credit spread. Related interest income continues to be measured based on the contractual interest rates and reported as Interest revenue in the Consolidated Statement of Income.
Certain Debt Liabilities
The Company has elected the fair value option for certain debt liabilities. The Company elected the fair value optionliabilities, because these exposures are considered to be trading-related positions and, therefore, are managed on a fair value basis. These positions will continue to be classified as debt, deposits or derivativesare classified as Trading account liabilitiesLong-term debt or Short-term borrowings on the Company’s Consolidated Balance Sheet according to their legal form.Sheet.
The following table provides information about the carrying value of notes carried at fair value, disaggregated by type of risk:
| | In billions of dollars | In billions of dollars | September 30, 2022 | December 31, 2021 | In billions of dollars | September 30, 2023 | December 31, 2022 |
| Interest rate linked | Interest rate linked | $ | 45.2 | | $ | 38.9 | | Interest rate linked | $ | 55.1 | | $ | 53.4 | |
| Foreign exchange linked | Foreign exchange linked | 0.1 | | — | | Foreign exchange linked | — | | 0.1 | |
| Equity linked | Equity linked | 37.0 | | 36.1 | | Equity linked | 47.4 | | 42.5 | |
| Commodity linked | Commodity linked | 5.1 | | 3.9 | | Commodity linked | 5.3 | | 5.0 | |
| Credit linked | Credit linked | 4.4 | | 3.7 | | Credit linked | 4.8 | | 5.0 | |
| Total | Total | $ | 91.8 | | $ | 82.6 | | Total | $ | 112.6 | | $ | 106.0 | |
The portion of the changes in fair value attributable to changes in Citigroup’s own credit spreads (DVA) is reflected as a component of AOCI while all other changes in fair value are reported in Principal transactions. Changes in the fair value of these liabilities include accrued interest, which is also included in the change in fair value reported in Principal transactions.
The following table provides information about long-term debt carried at fair value:
| | In millions of dollars | In millions of dollars | September 30, 2022 | December 31, 2021 | In millions of dollars | September 30, 2023 | December 31, 2022 |
| Carrying amount reported on the Consolidated Balance Sheet | Carrying amount reported on the Consolidated Balance Sheet | $ | 91,825 | | $ | 82,609 | | Carrying amount reported on the Consolidated Balance Sheet | $ | 112,629 | | $ | 105,995 | |
| Aggregate unpaid principal balance in excess of (less than) fair value | Aggregate unpaid principal balance in excess of (less than) fair value | (2,745) | | (2,459) | | Aggregate unpaid principal balance in excess of (less than) fair value | (2,616) | | (2,944) | |
The following table provides information about short-term borrowings carried at fair value:
| | In millions of dollars | In millions of dollars | September 30, 2022 | December 31, 2021 | In millions of dollars | September 30, 2023 | December 31, 2022 |
| Carrying amount reported on the Consolidated Balance Sheet | Carrying amount reported on the Consolidated Balance Sheet | $ | 6,570 | | $ | 7,358 | | Carrying amount reported on the Consolidated Balance Sheet | $ | 6,470 | | $ | 6,222 | |
| Aggregate unpaid principal balance in excess of (less than) fair value | Aggregate unpaid principal balance in excess of (less than) fair value | 1 | | (644) | | Aggregate unpaid principal balance in excess of (less than) fair value | (12) | | (9) | |
22.24. GUARANTEES AND COMMITMENTS
Citi provides a variety ofThe following tables present information about Citi’s guarantees at September 30, 2023 and indemnifications to its customers to enhance their credit standing and enable them to complete a wide range of business transactions. For
certain contracts meeting the definition of a guarantee, the guarantor must recognize, at inception, a liability for the fair value of the obligation undertaken in issuing the guarantee.
In addition, the guarantor must disclose the maximum potential amount of future payments that the guarantor could be required to make under the guarantee, if there were a total
default by the guaranteed parties. The determination of the maximum potential future payments is based on the notional
amount of the guarantees without consideration of possible recoveries under recourse provisions or from collateral held or pledged. As such, Citi believes such amounts bear no relationship to the anticipated losses, if any, on these guarantees.December 31, 2022.
For additional information regardingon Citi’s guarantees and indemnifications included in the tables below, as well as its other guarantees and indemnifications excluded from these tables, see Note 2627 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
The following tables present information about Citi’s guarantees at September 30, 2022 and December 31, 2021:
| | | | | | | | | | | | | | |
| Maximum potential amount of future payments | |
| In billions of dollars at September 30, 2022 | Expire within
1 year | Expire after
1 year | Total amount
outstanding | Carrying value (in millions of dollars) |
| Financial standby letters of credit | $ | 34.2 | | $ | 56.0 | | $ | 90.2 | | $ | 864 | |
| Performance guarantees | 6.2 | | 5.3 | | 11.5 | | 66 | |
| Derivative instruments considered to be guarantees | 21.6 | | 40.7 | | 62.3 | | 475 | |
| Loans sold with recourse | — | | 1.7 | | 1.7 | | 15 | |
Securities lending indemnifications(1) | 108.8 | | — | | 108.8 | | — | |
Credit card merchant processing(2) | 129.8 | | — | | 129.8 | | 1 | |
| Credit card arrangements with partners | — | | 0.6 | | 0.6 | | 7 | |
| Other | 0.4 | | 10.5 | | 10.9 | | 33 | |
| Total | $ | 301.0 | | $ | 114.8 | | $ | 415.8 | | $ | 1,461 | |
| | | | | | | | | | | | | | |
| | Maximum potential amount of future payments | |
| In billions of dollars at December 31, 2021 | Expire within
1 year | Expire after
1 year | Total amount
outstanding | Carrying value (in millions of dollars) |
| Financial standby letters of credit | $ | 34.3 | | $ | 58.4 | | $ | 92.7 | | $ | 791 | |
| Performance guarantees | 6.6 | | 6.4 | | 13.0 | | 47 | |
| Derivative instruments considered to be guarantees | 14.6 | | 48.9 | | 63.5 | | 514 | |
| Loans sold with recourse | — | | 1.7 | | 1.7 | | 15 | |
Securities lending indemnifications(1) | 121.9 | | — | | 121.9 | | — | |
Credit card merchant processing(2) | 119.4 | | — | | 119.4 | | 1 | |
| Credit card arrangements with partners | — | | 0.8 | | 0.8 | | 7 | |
| Other | 2.0 | | 12.0 | | 14.0 | | 34 | |
| Total | $ | 298.8 | | $ | 128.2 | | $ | 427.0 | | $ | 1,409 | |
| | | | | | | | | | | | | | |
| Maximum potential amount of future payments | |
| In billions of dollars at September 30, 2023 | Expire within
1 year | Expire after
1 year | Total amount
outstanding | Carrying value (in millions of dollars) |
| Financial standby letters of credit | $ | 20.8 | | $ | 64.5 | | $ | 85.3 | | $ | 759 | |
| Performance guarantees | 4.7 | | 5.8 | | 10.5 | | 47 | |
| Derivative instruments considered to be guarantees | 18.0 | | 19.2 | | 37.2 | | 326 | |
| Loans sold with recourse | 0.6 | | 1.2 | | 1.8 | | 16 | |
Securities lending indemnifications(1) | 110.2 | | — | | 110.2 | | — | |
Credit card merchant processing(2) | 136.8 | | — | | 136.8 | | 1 | |
| Credit card arrangements with partners | — | | 0.4 | | 0.4 | | 5 | |
| Other | 31.3 | | 8.4 | | 39.7 | | 50 | |
| Total | $ | 322.4 | | $ | 99.5 | | $ | 421.9 | | $ | 1,204 | |
| | | | | | | | | | | | | | |
| | Maximum potential amount of future payments | |
| In billions of dollars at December 31, 2022 | Expire within
1 year | Expire after
1 year | Total amount
outstanding | Carrying value (in millions of dollars) |
| Financial standby letters of credit | $ | 31.3 | | $ | 58.3 | | $ | 89.6 | | $ | 905 | |
| Performance guarantees | 6.1 | | 5.6 | | 11.7 | | 65 | |
| Derivative instruments considered to be guarantees | 18.5 | | 30.0 | | 48.5 | | 353 | |
| Loans sold with recourse | — | | 1.7 | | 1.7 | | 13 | |
Securities lending indemnifications(1) | 95.9 | | — | | 95.9 | | — | |
Credit card merchant processing(2) | 129.6 | | — | | 129.6 | | 1 | |
| Credit card arrangements with partners | — | | 0.6 | | 0.6 | | 7 | |
| Other | 0.1 | | 8.4 | | 8.5 | | 32 | |
| Total | $ | 281.5 | | $ | 104.6 | | $ | 386.1 | | $ | 1,376 | |
(1)The carrying values of securities lending indemnifications were not material for either period presented, as the probability of potential liabilities arising from these guarantees is minimal.
(2)At September 30, 20222023 and December 31, 2021,2022, this maximum potential exposure was estimated to be approximately $130$137 billion and $119$130 billion, respectively. However, Citi believes that the maximum exposure is not representative of the actual potential loss exposure based on its historical experience. This contingent liability is unlikely to arise, as most products and services are delivered when purchased and amounts are refunded when items are returned to merchants.
Loans Sold with Recourse
Loans sold with recourse represent Citi’s obligations to reimburse the buyers for loan losses under certain circumstances. Recourse refers to the clause in a sales agreement under which a seller/lender will fully reimburse the buyer/investor for any losses resulting from the purchased loans. This may be accomplished by the sellers taking back any loans that become delinquent.
In addition to the amounts shownpresented in the tables above, Citi has recorded a repurchase reserve for its potential repurchases or make-whole liability regarding residential mortgage representation and warranty claims related to its whole loan sales to U.S. government-sponsored agencies and, to a lesser extent, private investors. Thethe repurchase reserve was approximately $15$11 million and $19$10 million at September 30, 20222023 and December 31, 2021,2022, respectively, and these amounts are included in Other liabilities on the Consolidated Balance Sheet.
For additional information on Citi’s loans sold with recourse, see Note 27 to the Consolidated Financial Statements in Citi’s 2022 Form 10-K.
Credit Card Arrangements with Partners
Citi, in one of its credit card partner arrangements, provides guarantees to the partner regarding the volume of certain customer originations during the term of the agreement. To the extent that such origination targets are not met, the guarantees serve to compensate the partner for certain payments that otherwise would have been generated in connection with such originations.
Other Guarantees and Indemnifications
Credit Card Protection Programs
Citi, through its credit card businesses, provides various cardholder protection programs on several of its card products, including programs that provide insurance coverage for rental cars, coverage for certain losses associated with purchased products, price protection for certain purchases and protection for lost luggage. These guarantees are not included in the table, since the total outstanding amount of the guarantees and Citi’s maximum exposure to loss cannot be quantified. The protection is limited to certain types of purchases and losses, and it is not possible to quantify the purchases that would qualify for these benefits at any given time. Citi assesses the probability and amount of its potential liability related to these programs based on the extent and nature of its historical loss experience. At September 30, 20222023 and December 31, 2021,2022, the actual and estimated losses incurred and the carrying value of Citi’s obligations related to these programs were immaterial.
Value-Transfer Networks (Including Exchanges and Clearing Houses) (VTNs)
Citi is a member of, or shareholder in, hundreds of value-transfer networks (VTNs) (payment, clearing and settlement systems as well as exchanges) around the world. As a condition of membership, many of these VTNs require that members stand ready to pay a pro rata share of the losses incurred by the organization due to another member’s default on its obligations. Citi’s potential obligations may be limited to its membership interests in the VTNs, contributions to the VTN’s funds, or, in certain narrow cases, to the full pro rata
share. The maximum exposure is difficult to estimate as this would require an assessment of claims that have not yet occurred; however, Citi believes the risk of loss is remote given historical experience with the VTNs. Accordingly, Citi’s participation in VTNs is not reported in the guarantees tables above, and there are no amounts reflected on the Consolidated Balance Sheet as of September 30, 20222023 or December 31, 20212022 for potential obligations that could arise from Citi’s involvement with VTN associations.
Long-Term Care (LTC) Insurance Indemnification
Citi has an indemnification contingency to Brighthouse Financial in connection with Citi’s sale of an insurance subsidiary. A liability under this indemnification agreement is currently remote because Brighthouse Financial would become responsible for LTC policyholder claims only when both the reinsurance provided by other parties ceases and trust assets set aside to meet these claims are not adequate. However, should events occur causing both the reinsurance protection and trust collateral to become insufficient to cover Brighthouse Financial’s LTC policyholder claims, Citi will be required to either estimate and disclose a reasonably possible loss or range of loss to the extent that such an estimate can be made, or to accrue for such liability if the event becomes probable and estimable. Citi continues to closely monitor its potential exposure under this indemnification obligation. For additional information, see Note 2627 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
Futures and Over-the-Counter Derivatives Clearing
Citi provides clearing services on central clearing parties (CCP) for clients that need to clear exchange-traded and over-the-counter (OTC) derivatives contracts with CCPs. Based on all relevant facts and circumstances, Citi has concluded that it acts as an agent for accounting purposes in its role as clearing member for these client transactions. As such, Citi does not reflect the underlying exchange-traded or OTC derivatives contracts in its Consolidated Financial Statements. See Note 1921 for a discussion of Citi’s derivatives activities that are reflected in its Consolidated Financial Statements.
As a clearing member, Citi collects and remits cash and securities collateral (margin) between its clients and the respective CCP. In certain circumstances, Citi collects a higher amount of cash (or securities) from its clients than it needs to remit to the CCPs. This excess cash is then held at depository institutions such as banks or carry brokers.
There are two types of margin: initial and variation. Where Citi obtains benefits from or controls cash initial margin (e.g., retains an interest spread), cash initial margin collected from clients and remitted to the CCP or depository institutions is reflected within Brokerage payables (payables to customers) and Brokerage receivables (receivables from brokers, dealers and clearing organizations) or Cash and due from banks, respectively.
However, for exchange-traded and OTC-cleared derivatives contracts where Citi does not obtain benefits from or control the client cash balances, the client cash initial margin collected from clients and remitted to the CCP or depository institutions is not reflected on Citi’s Consolidated Balance Sheet. These conditions are met when Citi has
contractually agreed with the client that (i) Citi will pass through to the client all interest paid by the CCP or depository institutions on the cash initial margin, (ii) Citi will not utilize its right as a clearing member to transform cash margin into other assets, (iii) Citi does not guarantee and is not liable to the client for the performance of the CCP or the depository institution and (iv) the client cash balances are legally isolated from Citi’s bankruptcy estate. The total amount of cash initial margin collected and remitted in this manner was
approximately $17.4$17.3 billion and $18.7$18.0 billion as of September 30, 20222023 and December 31, 2021,2022, respectively.
Variation margin due from clients to the respective CCP, or from the CCP to clients, reflects changes in the value of the client’s derivative contracts for each trading day. As a clearing member, Citi is exposed to the risk of non-performance by clients (e.g., failure of a client to post variation margin to the CCP for negative changes in the value of the client’s derivative contracts). In the event of non-performance by a client, Citi would move to close out the client’s positions. The CCP would typically utilize initial margin posted by the client and held by the CCP, with any remaining shortfalls required to be paid by Citi as clearing member. Citi generally holds incremental cash or securities margin posted by the client, which would typically be expected to be sufficient to mitigate Citi’s credit risk in the event the client fails to perform.
As required by ASC 860-30-25-5, securities collateral posted by clients is not recognized on Citi’s Consolidated Balance Sheet.
FICC Sponsored Member Repo Program
Citi acts as a sponsoring member of the Government Securities Division of the Fixed Income Clearing Corporation (FICC) to clear eligible resale and repurchase agreements on behalf of its clients that become sponsored members of the FICC. Citi, as sponsoring member, is required to provide a guarantee to the FICC with respect to the prompt payment and performance of its sponsored members. Because Citi obtains a security interest in the cash or high-quality securities collateral that the clients place with the clearing house, Citi expects the risk of loss from this guarantee to be remote. See Note 10 for additional information on Citi’s resale and repurchase agreements, including risk mitigation practices for these transactions.
Carrying Value—Guarantees and Indemnifications
At September 30, 20222023 and December 31, 2021,2022, the total carrying amounts of the liabilities related to the guarantees and indemnifications included in the tables above amounted to approximately $1.5$1.2 billion and $1.4 billion, respectively. The carrying value of financial and performance guarantees is included in Other liabilities. For loans sold with recourse, the carrying value of the liability is included in Other liabilities.
Collateral
Cash collateral available to Citi to reimburse losses realized under these guarantees and indemnifications amounted to $58.3$49.8 billion and $56.5$51.8 billion at September 30, 20222023 and December 31, 2021,2022, respectively. Securities and other marketable assets held as collateral amounted to $71.0$76.3 billion and $84.2$63.7 billion at September 30, 20222023 and December 31, 2021,2022, respectively. The majority of collateral is held to reimburse losses realized under securities lending indemnifications. In addition, letters of credit in favor of Citi held as collateral amounted to $3.6$3.4 billion and $4.1$3.7 billion at September 30, 20222023 and December 31, 2021,2022, respectively. Other property may also be available to Citi to cover losses under certain guarantees and indemnifications; however, the value of such property has not been determined.
Performance Risk
Presented in the tables below are the maximum potential amounts of future payments that are classified based on internal and external credit ratings. The determination of the maximum potential future payments is based on the notional amount of the guarantees without consideration of possible recoveries under recourse provisions or from collateral held or pledged. As such, Citi believes such amounts bear no relationship to the anticipated losses, if any, on these guarantees.
| | | | | | | | | | | | | | |
| | Maximum potential amount of future payments |
| In billions of dollars at September 30, 2022 | Investment
grade | Non-investment
grade | Not
rated | Total |
| Financial standby letters of credit | $ | 80.4 | | $ | 9.8 | | $ | — | | $ | 90.2 | |
| Performance guarantees | 9.4 | | 2.1 | | — | | 11.5 | |
| Derivative instruments deemed to be guarantees | — | | — | | 62.3 | | 62.3 | |
| Loans sold with recourse | — | | — | | 1.7 | | 1.7 | |
| Securities lending indemnifications | — | | — | | 108.8 | | 108.8 | |
| Credit card merchant processing | — | | — | | 129.8 | | 129.8 | |
| Credit card arrangements with partners | — | | — | | 0.6 | | 0.6 | |
| Other | 0.2 | | 10.7 | | — | | 10.9 | |
| Total | $ | 90.0 | | $ | 22.6 | | $ | 303.2 | | $ | 415.8 | |
| | | | | | | | | | | | | | |
| | Maximum potential amount of future payments |
| In billions of dollars at September 30, 2023 | Investment
grade | Non-investment
grade | Not
rated | Total |
| Financial standby letters of credit | $ | 74.3 | | $ | 11.0 | | $ | — | | $ | 85.3 | |
| Loans sold with recourse | — | | — | | 1.8 | | 1.8 | |
| Other | 17.4 | | 22.3 | | — | | 39.7 | |
| Total | $ | 91.7 | | $ | 33.3 | | $ | 1.8 | | $ | 126.8 | |
| | | | | | | | | | | | | | |
| | Maximum potential amount of future payments |
| In billions of dollars at December 31, 2021 | Investment
grade | Non-investment
grade | Not
rated | Total |
| Financial standby letters of credit | $ | 81.4 | | $ | 11.3 | | $ | — | | $ | 92.7 | |
| Performance guarantees | 10.5 | | 2.5 | | — | | 13.0 | |
| Derivative instruments deemed to be guarantees | — | | — | | 63.5 | | 63.5 | |
| Loans sold with recourse | — | | — | | 1.7 | | 1.7 | |
| Securities lending indemnifications | — | | — | | 121.9 | | 121.9 | |
| Credit card merchant processing | — | | — | | 119.4 | | 119.4 | |
| Credit card arrangements with partners | — | | — | | 0.8 | | 0.8 | |
| Other | — | | 12.0 | | 2.0 | | 14.0 | |
| Total | $ | 91.9 | | $ | 25.8 | | $ | 309.3 | | $ | 427.0 | |
| | | | | | | | | | | | | | |
| | Maximum potential amount of future payments |
| In billions of dollars at December 31, 2022 | Investment
grade | Non-investment
grade | Not
rated | Total |
| Financial standby letters of credit | $ | 77.9 | | $ | 10.4 | | $ | 1.3 | | $ | 89.6 | |
| Loans sold with recourse | — | | — | | 1.7 | | 1.7 | |
| Other | — | | 8.5 | | — | | 8.5 | |
| Total | $ | 77.9 | | $ | 18.9 | | $ | 3.0 | | $ | 99.8 | |
Credit Commitments and Lines of Credit
The table below summarizes Citigroup’s credit commitments:
| | | | | | | | | | | | | | |
| In millions of dollars | U.S. | Outside of U.S.(1) | September 30,
2022 | December 31,
2021 |
| Commercial and similar letters of credit | $ | 1,028 | | $ | 4,827 | | $ | 5,855 | | $ | 5,910 | |
| One- to four-family residential mortgages | 1,159 | | 1,636 | | 2,795 | | 4,351 | |
| Revolving open-end loans secured by one- to four-family residential properties | 6,156 | | 653 | | 6,809 | | 7,913 | |
| Commercial real estate, construction and land development | 13,785 | | 2,150 | | 15,935 | | 17,843 | |
| Credit card lines | 608,930 | | 85,756 | | 694,686 | | 700,559 | |
| Commercial and other consumer loan commitments | 182,268 | | 104,229 | | 286,497 | | 320,556 | |
| Other commitments and contingencies | 5,214 | | 148 | | 5,362 | | 5,649 | |
| Total | $ | 818,540 | | $ | 199,399 | | $ | 1,017,939 | | $ | 1,062,781 | |
(1)Consumer commitments related to the business HFS countries under sales agreements are reflected in their original categories until the respective sales are completed.
The majority of unused commitments are contingent upon customers maintaining specific credit standards. Commercial commitments generally have floating interest rates and fixed expiration dates and may require payment of fees. Such fees (net of certain direct costs) are deferred and, upon exercise of the commitment, amortized over the life of the loan or, if exercise is deemed remote, amortized over the commitment period.
The table below summarizes Citigroup’s credit commitments:
Other Commitments and Contingencies | | | | | | | | | | | | | | |
| In millions of dollars | U.S. | Outside of U.S.(1) | September 30,
2023 | December 31, 2022 |
| Commercial and similar letters of credit | $ | 659 | | $ | 4,549 | | $ | 5,208 | | $ | 5,316 | |
| One- to four-family residential mortgages | 756 | | 687 | | 1,443 | | 2,394 | |
| Revolving open-end loans secured by one- to four-family residential properties | 5,553 | | 25 | | 5,578 | | 6,380 | |
| Commercial real estate, construction and land development | 13,451 | | 2,045 | | 15,496 | | 15,170 | |
| Credit card lines | 614,535 | | 64,459 | | 678,994 | | 683,232 | |
| Commercial and other consumer loan commitments | 205,749 | | 108,703 | | 314,452 | | 297,399 | |
Other commitments and contingencies(2) | 5,381 | | 105 | | 5,486 | | 5,673 | |
| Total | $ | 846,084 | | $ | 180,573 | | $ | 1,026,657 | | $ | 1,015,564 | |
(1)Consumer commitments related to the business HFS countries under sales agreements are reflected in their original categories until the respective sales are completed.
(2)Other commitments and contingencies include all other transactions relatedcommitments to commitmentspurchase certain debt and contingencies not reported on the lines above.equity securities.
Unsettled Reverse Repurchase
Other Commitments
As a Federal Reserve member bank, Citi is required to subscribe to half of a certain amount of shares issued by its Federal Reserve District Bank. As of September 30, 2023 and Securities Borrowing Agreements and Unsettled Repurchase and Securities Lending AgreementsDecember 31, 2022, Citi holds shares with a carrying value of $4.5 billion, with the remaining half subject to call by the Federal Reserve District Bank Board.
In addition, in the normal course of business, CitigroupCiti enters into reverse repurchase and securities borrowing agreements, as well as repurchase and securities lending agreements, which settle at a future date. At September 30, 20222023 and December 31, 2021, Citigroup2022, Citi had approximately $135.4$143.9 billion and $126.6$111.6 billion of unsettled reverse repurchase and securities borrowing agreements, and approximately $53.3$108.7 billion and $41.1$37.3 billion of unsettled repurchase and securities lending agreements, respectively. See Note 10 for a further discussion of securities purchased under agreements to resell and securities borrowed, and securities sold under agreements to repurchase and securities loaned, including the Company’s policy for offsetting repurchase and reverse repurchase agreements.
These amounts are not included in the table above.
Restricted Cash
Citigroup defines restricted cash (as cash subject to withdrawal restrictions) to include cash deposited with central banks that must be maintained to meet minimum regulatory requirements, and cash set aside for the benefit of customers or for other purposes such as compensating balance arrangements or debt retirement. Restricted cash includesmay include minimum reserve requirements with the Federal Reserve Bank andat certain other central banks and cash segregated to satisfy rules regarding the protection of customer assets as required by Citigroup broker-dealers’ primary regulators, including the United States Securities and Exchange Commission (SEC),SEC, the Commodity Futures Trading Commission and the United Kingdom’s Prudential Regulation Authority.
Restricted cash is included on the Consolidated Balance Sheet within the following balance sheet lines:
| | In millions of dollars | In millions of dollars | September 30,
2022 | December 31,
2021 | In millions of dollars | September 30,
2023 | December 31, 2022 |
| Cash and due from banks | Cash and due from banks | $ | 5,216 | | $ | 2,786 | | Cash and due from banks | $ | 4,150 | | $ | 4,820 | |
| Deposits with banks, net of allowance | Deposits with banks, net of allowance | 10,950 | | 10,636 | | Deposits with banks, net of allowance | 14,786 | | 12,156 | |
| Total | Total | $ | 16,166 | | $ | 13,422 | | Total | $ | 18,936 | | $ | 16,976 | |
In responseaddition to the COVID-19 pandemic,restricted cash amounts presented
above, at September 30, 2023 and December 31, 2022,
approximately $3.5 billion and $1.8 billion, respectively, was
held at the Federal Reserve BankDeposit Insurance Agency and certain other central banks eased regulations relatedwas subject to minimum required cash deposited with central banks.
restrictions imposed by the Russian government. These restricted amounts are reported within
23.
25. LEASES
The Company’s operating leases, where Citi is a lessee, include real estate, such as office space and branches, and various types of equipment. These leases may contain renewal and extension options and early termination features; however, these options do not impact the lease term unless the Company is reasonably certain that it will exercise options. These leases have a weighted-average remaining lease term of approximately six years as of September 30, 2022.2023.
For additional information regarding Citi’s leases, see NoteNotes 1 and Note 2628 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
The following table presents information on the Right of Useright-of-use (ROU) asset and lease liabilities included in Other assetsPremises and equipment and Other liabilities, respectively.respectively:
| | In millions of dollars | In millions of dollars | September 30,
2022 | December 31,
2021 | In millions of dollars | September 30,
2023 | December 31,
2022 |
| ROU asset | ROU asset | $ | 2,932 | | $ | 2,914 | | ROU asset | $ | 2,787 | | $ | 2,892 | |
| Lease liability | Lease liability | 3,118 | | 3,116 | | Lease liability | 2,974 | | 3,076 | |
The Company recognizes fixed lease costs on a straight-line basis throughout the lease term in the Consolidated Statement of Income. In addition, variable lease costs are recognized in the period in which the obligation for those payments is incurred.
24.
26. CONTINGENCIES
The following information supplements and amends, as applicable, the disclosure in Note 2326 to the Consolidated Financial Statements ofin Citigroup’s Second Quarter of 20222023 Form 10-Q, and First Quarter of 2022 Form 10-Q and in Note 2725 to the Consolidated Financial Statements in Citi’s 2021First Quarter of 2023 Form 10-Q and in Note 29 to the Consolidated Financial Statements in Citi’s 2022 Form 10-K. For purposes of this Note, Citigroup, its affiliates and subsidiaries and current and former officers, directors, and employees, are sometimes collectively referred to as Citigroup and Related Parties.
In accordance with ASC 450, Citigroup establishes accruals for contingencies, including any litigation, regulatory, or tax matters disclosed herein, when Citigroup believes it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. The amount of loss ultimately incurred in relation to those matters may be substantially higher or lower than the amounts accrued for those matters. With respect to previously incurred loss contingencies for which recovery is expected, Citi applies loss recovery accounting when disputes and uncertainties affecting recognition are resolved.
If Citigroup has not accrued for a matter because the matter does not meet the criteria for accrual (as set forth above), or Citigroup believes an exposure to loss exists in excess of the amount accrued for a particular matter, in each case assuming a material loss is reasonably possible but not probable, Citigroup discloses the matter. In addition, for such matters, Citigroup discloses an estimate of the aggregate reasonably possible loss or range of loss in excess of the amounts accrued for those matters for which an estimate can be made. At September 30, 2022,2023, Citigroup estimates that the reasonably possible unaccrued loss for these matters ranges up to approximately $1.2$1.3 billion in the aggregate.
As available information changes, the matters for which Citigroup is able to estimate will change, and the estimates themselves will change. In addition, while many estimates presented in financial statements and other financial disclosures involve significant judgment and may be subject to significant uncertainty, estimates of the range of reasonably possible loss arising from litigation, regulatory, tax, or other matters are subject to particular uncertainties. For example, at the time of making an estimate, Citigroup may only have preliminary or incomplete information about the facts underlying the claim; its assumptions about the future rulings of the court or other tribunal on significant issues, or the behavior and incentives of adverse parties, regulators, or tax authorities may prove to be wrong; and the outcomes it is attempting to predict are often not amenable to the use of statistical or other quantitative analytical tools. In addition, from time to time an outcome may occur that Citigroup had not accounted for in its estimates because it had deemed such an outcome to be remote. For all these reasons, the amount of loss in excess of amounts accrued in relation to matters for which an estimate has been made could be substantially higher or lower than the range of loss included in the estimate.
Subject to the foregoing, it is the opinion of Citigroup’s management, based on current knowledge and after taking into
account its current accruals, that the eventual outcome of all matters described in this Note would not be likely to have a material adverse effect on the consolidated financial condition of Citigroup. Nonetheless, given the substantial or indeterminate amounts sought in certain of these matters and the inherent unpredictability of such matters, an adverse outcome in certain of these matters could, from time to time, have a material adverse effect on Citigroup’s consolidated results of operations or cash flows in particular quarterly or annual periods.
For further information on ASC 450 and Citigroup’s accounting and disclosure framework for contingencies, including for any litigation, regulatory, and tax matters disclosed herein, see Note 2729 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
Foreign Exchange MattersFDIC Special Assessment
AntitrustOn May 11, 2023, the FDIC issued a notice of proposed
rulemaking that would implement a special assessment—
primarily upon large banks—to recover the uninsured deposit losses from the failures of Silicon Valley Bank and Other Litigation:On August 22, 2022,Signature Bank. The FDIC estimated that of the cost of the failures, approximately $15.8 billion was attributable to the protection of uninsured depositors, an estimate that will be periodically adjusted. The FDIC has proposed collecting the special assessment at an annual rate of approximately 12.5 basis points of uninsured U.S. deposits over eight quarterly assessment periods beginning in NYPL v. JPMORGAN CHASE & CO., ET AL.,2024. There is sufficient uncertainty around the United States Court of Appealsfinal FDIC regulation that would impact both the timing and amount. If the final rule for the Second Circuit denied plaintiffs’ petition seeking appellate reviewFDIC special assessment, which is expected before the end of 2023, is enacted as proposed, Citi is likely to incur up to a $1.5 billion pretax charge, impacting operating expenses. This amount is not included in the decision denying class certification. Additional information concerning this action is publicly available in court filings under the docket numbers 15-CV-9300 (S.D.N.Y.) (Schofield, J.) and 22-698 (2d Cir.).
On October 4, 2022, in MICHAEL O’HIGGINS FX CLASS REPRESENTATIVE LIMITED v. BARCLAYS BANK PLC AND OTHERS and PHILLIP EVANS v. BARCLAYS BANK PLC AND OTHERS, the U.K.’s Competition Appeal Tribunal granted permission to both claimants to appeal its March 31, 2022 judgment on certification. Additional information concerning these actions is publicly available in court filings under the case numbers 1329/7/7/19 and 1336/7/7/19.reasonably possible loss estimate above.
Interbank Offered Rates-Related Litigation and Other Matters
Antitrust and Other Litigation: On September 13, 2022,October 10, 2023, in MCCARTHY, ET AL. v. INTERCONTINENTAL EXCHANGE, INC., ET AL., the United States District Court for the Northern District of California granted defendants’ motionsmotion to dismiss with prejudice for lack of antitrust standing, but granted plaintiffs leave to amend. On October 4, 2022, plaintiffs filed an amended complaint. Plaintiffs continue to allege that defendants conspired to fix ICE LIBOR, assertall claims under the Sherman Actagainst Citigroup, Citibank, and the Clayton Act, and seek declaratory relief, injunctive relief, and treble damages.CGMI. Additional information concerning this action is publicly available in court filings under the docket number 20-CV-5832 (N.D. Cal.) (Donato, J.).
Madoff-RelatedInterest Rate and Credit Default Swap Matters
Antitrust and Other Litigation
In: On August 14, 2023, the actions brought by the trustee appointed for the Securities Investor Protection Act liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS), on September 27, 2022, the United States Bankruptcy Court for the Southern District of New York denied thecourt granted defendants’ motion to dismiss filed bywith prejudice for all claims against Citigroup, Citibank, Citicorp North America,CGMI, and CGML.CGML in TERA GROUP, INC., ET AL. v. CITIGROUP, INC., ET AL. Additional
information concerning these actionsthis action is publicly available in
court filings under the docket numbers 10-5345, 12-1700number 17-CV-4302 (S.D.N.Y.) (Sullivan, J.).
(Bankr. S.D.N.Y.) (Morris, J.); 12-MC-115Variable Rate Demand Obligation Litigations
On September 21, 2023, the court granted plaintiffs’ motion for class certification in THE CITY OF PHILADELPHIA, MAYOR AND CITY COUNCIL OF BALTIMORE, THE BOARD OF DIRECTORS OF THE SAN DIEGO ASSOCIATION OF GOVERNMENTS, ACTING AS THE SAN DIEGO COUNTY REGIONAL TRANSPORTATION COMMISSION v. BANK OF AMERICA CORP., ET AL., certifying both an antitrust class and a breach-of-contract subclass. On October 5, 2023, defendants filed a Rule 23(f) petition seeking leave to appeal the certification ruling. Additional information concerning this action is publicly available in court filings under the docket numbers 19-CV-1608 (S.D.N.Y.) (Rakoff,(Furman, J.); and 17-2992, 17-3076, 17-3139, 19-4282, 20-133323-7328 (2d Cir.).
In theSince April 2018, Citigroup and certain of its affiliates, including Citibank and CGMI, have been named in state court qui tam lawsuits in which Edelweiss Fund, LLC alleges that Citi and other financial institutions defrauded certain state municipal variable rate demand obligation (“VRDO”) issuers in connection with resetting VRDO interest rates. Filed under each state’s respective false claims act, these actions brought by liquidators of Fairfield Sentry Limited, on August 24, 2022, the United States District Court for the Southern District ofare pending in state courts in California, Illinois, New Jersey, and New York, affirmed various decisions of the bankruptcy court, which dismissed claims against Citibank NA London, Citigroup Global Markets Ltd. (CGML)and are captioned STATE OF CALIFORNIA EX REL. EDELWEISS FUND v. JP MORGAN CHASE & CO., Citivic Nominees Ltd.ET AL., Citibank (Switzerland) AG, Cititrust Bahamas Ltd.STATE OF ILLINOIS EX REL. EDELWEISS FUND v. JP MORGAN CHASE & CO., ET AL., STATE OF NEW JERSEY EX REL. EDELWEISS FUND v. JP MORGAN CHASE & CO., ET AL., and Citibank Korea Inc.STATE OF NEW YORK EX REL. EDELWEISS FUND v. JP MORGAN CHASE & CO., and sustained a single claim against Citibank NA London, CGML, Citivic Nominees Ltd.ET AL., and Citibank (Switzerland) AG. Beginning on September 26, 2022, the liquidators filed notices of appeal, and on September 30, 2022, the defendants sought review of the district court’s decision with respect to the remaining claim.respectively. Additional information concerning these actions is publicly available in court filings under the docket numbers 10-13164, 10-3496, 10-3622, 10-3634, 10-4100, 10-3640, 11-2770, 12-1298, 12-1142 (Bankr. S.D.N.Y.2017 L 000289 (Ill. Cir. Ct.) (Morris,(Donnelly, J.); 19-3911, 19-4267, 19-4396, 19-4484, 19-5106, 19-5109, 19-5135, 21-2997, 21-3243, 21-3526, 21-3529, 21-3530, 21-3998, 21-4307, 21-4498, 21-4496 (S.D.N.Y., 100559/2014 (N.Y. Sup. Ct.) (Broderick,(Borrok, J.); and 22-2101, 22-2557, 22-2122, 22-2562, 22-2216, 22-2545, 22-2308, 22-2591, 22-2502, 22-2553, 22-2398, 22-258 (2d Cir., L-885-15 (N.J. Super. Ct.).
Record-Keeping Matters
In September 2022, Citigroup Global Markets Inc. (CGMI) entered into a resolution with the U.S. Securities and Exchange Commission (SEC) (Hurd, J.), 14-323-BLS1 (Mass. Super. Ct.) (Kaplan, J.), SJC-12973 (Mass. Sup. Ct.), CGC-14-540777 (Cal. Super. Ct.) (Schulman, J.), A163264 (Cal. Ct. App.), and CGMI, Citibank, and Citigroup Energy Inc. (CEI) entered into a resolution with the U.S. Commodity Futures Trading Commission (CFTC), to resolve the SEC’s and CFTC’s respective investigations regarding compliance with record-keeping obligations in connection with business-related communications sent over unapproved electronic messaging channels. Under these resolutions, a $125 million civil monetary penalty was paid to the SEC, and a $75 million civil monetary penalty was paid to the CFTC.
Revlon-Related Wire Transfer Litigation
On September 8, 2022, the United States Court of Appeals for the Second Circuit ruled in Citi’s favor and vacated the judgment of the district court, which had been in favor of the defendants. On September 22, 2022, the defendants filed a petition for rehearing and rehearing en banc, which the Court of Appeals denied. Additional information concerning this action is publicly available in court filings under the docket numbers 20-CV-6539 (S.D.N.Y.) (Furman, J.) and 21-487 (2d Cir.S280347 (Cal. Sup. Ct.).
Shareholder Derivative and Securities Litigations
On August 2, 2022, a shareholder derivative action captioned LIPSHUTZ et al. v. COSTELLO et al. was filed in the United States District Court for the Eastern District of New York, purportedly on behalf of Citigroup (as nominal defendant) against Citigroup’s current directors. The action raises substantially the same claims and allegations as IN RE CITIGROUP INC. SHAREHOLDER DERIVATIVE LITIGATION. The LIPSHUTZ action additionally asserts that plaintiffs made a litigation demand on the Citigroup Board of Directors and that the demand was wrongfully refused. On October 20, 2022, defendants moved to transfer the new action to the United States District Court for the Southern District of New York. Additional information concerning these actions is publicly available in court filings under the docket numbers 22 Civ. 4547 (E.D.N.Y.) (Kovner, J.) and 1:20-CV-09438 (S.D.N.Y.) (Preska, J.).
Sovereign Securities Litigation
Antitrust and Other Litigation: On September 15, 2022, in IN RE MEXICAN GOVERNMENT BONDS ANTITRUST LITIGATION, plaintiffs filed a notice of appeal to the United States Court of Appeals for the Second Circuit from the district court’s order dismissing certain defendants, including Citibanamex, for lack of personal jurisdiction. Additional information concerning this action is publicly available in court filings under the docket numbers 18-CV-2830 (S.D.N.Y.) (Oetken, J.) and 22-2039 (2d Cir.).
Settlement Payments
Payments required in any settlement agreements described
above have been made or are covered by existing litigation or
other accruals.
25. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS27. SUBSIDIARY GUARANTEES
Citigroup’s Registration StatementCitigroup Inc. has fully and unconditionally guaranteed the payments due on Form S-3 on file with the SEC includes its wholly owned subsidiary,debt securities issued by Citigroup Global Markets Holdings Inc. (CGMHI), a wholly owned subsidiary, under the Senior Debt Indenture dated as of March 8, 2016, between CGMHI, Citigroup Inc. and The Bank of New York Mellon, as trustee. In addition, Citigroup Capital III and Citigroup Capital XIII (collectively, the Capital Trusts), each of which is a co-registrant. Anywholly owned finance subsidiary of Citigroup Inc., have issued trust preferred securities. Citigroup Inc. has guaranteed the payments due on the trust preferred securities
to the extent that the Capital Trusts have insufficient available funds to make payments on the trust preferred securities. The guarantee, together with Citigroup Inc.’s other obligations with respect to the trust preferred securities, effectively provides a full and unconditional guarantee of amounts due on the trust preferred securities (see Note 17 for additional information). No other subsidiary of Citigroup Inc. guarantees the debt securities issued by CGMHI underor the Form S-3 will be fully and unconditionally guaranteedtrust preferred securities issued by Citigroup.the Capital Trusts.
The following are the Condensed Consolidating Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2022 and 2021, Condensed Consolidating Balance Sheet as of September 30, 2022 and December 31, 2021 and Condensed Consolidating Statement of Cash Flows for the nine months ended September 30, 2022 and 2021Summarized financial information for Citigroup Inc., the parent holding company (Citigroup parent company), and CGMHI other Citigroup subsidiaries and eliminations and total consolidating adjustments. “Other Citigroup subsidiaries and eliminations” includes all other subsidiaries of Citigroup, intercompany eliminations and income (loss) from discontinued operations. “Consolidating adjustments” includes Citigroup parent company elimination of distributed and undistributed income of subsidiaries and investment in subsidiaries.
These Condensed Consolidating Financial Statements have been prepared andis presented in accordance with SEC Regulation S-X Rule 3-10, “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.”
These Condensed Consolidating Financial Statements are presented for purposes of additional analysis, but should be considered in relation to the Consolidated Financial Statements of Citigroup taken as a whole.tables below:
Condensed Consolidating Statements of Income and Comprehensive Income
| | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, 2022 |
| In millions of dollars | Citigroup parent company | CGMHI | Other Citigroup subsidiaries and eliminations | Consolidating adjustments | Citigroup consolidated |
| Revenues | | | | | |
| Dividends from subsidiaries | $ | 3,742 | | $ | — | | $ | — | | $ | (3,742) | | $ | — | |
| Interest revenue | — | | 2,973 | | 16,946 | | — | | 19,919 | |
| Interest revenue—intercompany | 1,190 | | 689 | | (1,879) | | — | | — | |
| Interest expense | 1,324 | | 1,740 | | 4,292 | | — | | 7,356 | |
| Interest expense—intercompany | 198 | | 1,316 | | (1,514) | | — | | — | |
| Net interest income | $ | (332) | | $ | 606 | | $ | 12,289 | | $ | — | | $ | 12,563 | |
| Commissions and fees | $ | — | | $ | 1,078 | | $ | 1,061 | | $ | — | | $ | 2,139 | |
| Commissions and fees—intercompany | — | | (31) | | 31 | | — | | — | |
| Principal transactions | 1,584 | | 1,319 | | (278) | | — | | 2,625 | |
| Principal transactions—intercompany | (1,887) | | (809) | | 2,696 | | — | | — | |
| Other revenue | 137 | | 122 | | 922 | | — | | 1,181 | |
| Other revenue—intercompany | (122) | | (15) | | 137 | | — | | — | |
| Total non-interest revenues | $ | (288) | | $ | 1,664 | | $ | 4,569 | | $ | — | | $ | 5,945 | |
| Total revenues, net of interest expense | $ | 3,122 | | $ | 2,270 | | $ | 16,858 | | $ | (3,742) | | $ | 18,508 | |
| Provisions for credit losses and for benefits and claims | $ | — | | $ | 6 | | $ | 1,359 | | $ | — | | $ | 1,365 | |
| Operating expenses | | | | | |
| Compensation and benefits | $ | 6 | | $ | 1,427 | | $ | 5,312 | | $ | — | | $ | 6,745 | |
| Compensation and benefits—intercompany | 1 | | — | | (1) | | — | | — | |
| Other operating | 28 | | 772 | | 5,204 | | — | | 6,004 | |
| Other operating—intercompany | 4 | | 643 | | (647) | | — | | — | |
| Total operating expenses | $ | 39 | | $ | 2,842 | | $ | 9,868 | | $ | — | | $ | 12,749 | |
| Equity in undistributed income of subsidiaries | $ | 40 | | $ | — | | $ | — | | $ | (40) | | $ | — | |
| Income (loss) from continuing operations before income taxes | $ | 3,123 | | $ | (578) | | $ | 5,631 | | $ | (3,782) | | $ | 4,394 | |
| Provision (benefit) for income taxes | (356) | | (5) | | 1,240 | | — | | 879 | |
| Income (loss) from continuing operations | $ | 3,479 | | $ | (573) | | $ | 4,391 | | $ | (3,782) | | $ | 3,515 | |
| Income (loss) from discontinued operations, net of taxes | — | | — | | (6) | | — | | (6) | |
| Net income before attribution of noncontrolling interests | $ | 3,479 | | $ | (573) | | $ | 4,385 | | $ | (3,782) | | $ | 3,509 | |
| Noncontrolling interests | — | | — | | 30 | | — | | 30 | |
| Net income (loss) | $ | 3,479 | | $ | (573) | | $ | 4,355 | | $ | (3,782) | | $ | 3,479 | |
| Comprehensive income | | | | | |
| Add: Other comprehensive income (loss) | $ | (2,803) | | $ | (109) | | $ | 2,559 | | $ | (2,450) | | $ | (2,803) | |
| Total Citigroup comprehensive income (loss) | $ | 676 | | $ | (682) | | $ | 6,914 | | $ | (6,232) | | $ | 676 | |
| Add: Other comprehensive income attributable to noncontrolling interests | $ | — | | $ | — | | $ | (44) | | $ | — | | $ | (44) | |
| Add: Net income attributable to noncontrolling interests | — | | — | | 30 | | — | | 30 | |
| Total comprehensive income (loss) | $ | 676 | | $ | (682) | | $ | 6,900 | | $ | (6,232) | | $ | 662 | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | |
| Condensed Consolidating Statements of Income and Comprehensive Income |
| Nine Months Ended September 30, 2022 |
| In millions of dollars | Citigroup parent company | CGMHI | Other Citigroup subsidiaries and eliminations | Consolidating adjustments | Citigroup consolidated |
| Revenues | | | | | |
| Dividends from subsidiaries | $ | 5,792 | | $ | — | | $ | — | | $ | (5,792) | | $ | — | |
| Interest revenue | — | | 5,328 | | 43,372 | | — | | 48,700 | |
| Interest revenue—intercompany | 3,124 | | 1,121 | | (4,245) | | — | | — | |
| Interest expense | 3,801 | | 2,636 | | 6,865 | | — | | 13,302 | |
| Interest expense—intercompany | 438 | | 2,352 | | (2,790) | | — | | — | |
| Net interest income | $ | (1,115) | | $ | 1,461 | | $ | 35,052 | | $ | — | | $ | 35,398 | |
| Commissions and fees | $ | — | | $ | 3,667 | | $ | 3,492 | | $ | — | | $ | 7,159 | |
| Commissions and fees—intercompany | (1) | | 95 | | (94) | | — | | — | |
| Principal transactions | 5,478 | | 11,129 | | (4,867) | | — | | 11,740 | |
| Principal transactions—intercompany | (5,846) | | (8,246) | | 14,092 | | — | | — | |
| Other revenue | 524 | | 386 | | 2,125 | | — | | 3,035 | |
| Other revenue—intercompany | (303) | | (50) | | 353 | | — | | — | |
| Total non-interest revenues | $ | (148) | | $ | 6,981 | | $ | 15,101 | | $ | — | | $ | 21,934 | |
| Total revenues, net of interest expense | $ | 4,529 | | $ | 8,442 | | $ | 50,153 | | $ | (5,792) | | $ | 57,332 | |
| Provisions for credit losses and for benefits and claims | $ | — | | $ | 7 | | $ | 3,387 | | $ | — | | $ | 3,394 | |
| Operating expenses | | | | | |
| Compensation and benefits | $ | 4 | | $ | 4,262 | | $ | 15,771 | | $ | — | | $ | 20,037 | |
| Compensation and benefits—intercompany | 12 | | — | | (12) | | — | | — | |
| Other operating | 40 | | 2,318 | | 15,912 | | — | | 18,270 | |
| Other operating—intercompany | 11 | | 2,015 | | (2,026) | | — | | — | |
| Total operating expenses | $ | 67 | | $ | 8,595 | | $ | 29,645 | | $ | — | | $ | 38,307 | |
| Equity in undistributed income of subsidiaries | $ | 6,806 | | $ | — | | $ | — | | $ | (6,806) | | $ | — | |
| Income (loss) from continuing operations before income taxes | $ | 11,268 | | $ | (160) | | $ | 17,121 | | $ | (12,598) | | $ | 15,631 | |
| Provision (benefit) for income taxes | (1,064) | | (120) | | 4,186 | | — | | 3,002 | |
| Income (loss) from continuing operations | $ | 12,332 | | $ | (40) | | $ | 12,935 | | $ | (12,598) | | $ | 12,629 | |
| Income (loss) from discontinued operations, net of taxes | — | | — | | (229) | | — | | (229) | |
| Net income before attribution of noncontrolling interests | $ | 12,332 | | $ | (40) | | $ | 12,706 | | $ | (12,598) | | $ | 12,400 | |
| Noncontrolling interests | — | | — | | 68 | | — | | 68 | |
| Net income (loss) | $ | 12,332 | | $ | (40) | | $ | 12,638 | | $ | (12,598) | | $ | 12,332 | |
| Comprehensive income | | | | | |
| Add: Other comprehensive income (loss) | $ | (9,533) | | $ | 987 | | $ | (2,710) | | $ | 1,723 | | $ | (9,533) | |
| Total Citigroup comprehensive income (loss) | $ | 2,799 | | $ | 947 | | $ | 9,928 | | $ | (10,875) | | $ | 2,799 | |
| Add: Other comprehensive income attributable to noncontrolling interests | $ | — | | $ | — | | $ | (126) | | $ | — | | $ | (126) | |
| Add: Net income attributable to noncontrolling interests | — | | — | | 68 | | — | | 68 | |
| Total comprehensive income (loss) | $ | 2,799 | | $ | 947 | | $ | 9,870 | | $ | (10,875) | | $ | 2,741 | |
| | | | | |
| | | | | |
| | | | | |
Condensed Consolidating Statements of Income and Comprehensive Income
| | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, 2021 |
| In millions of dollars | Citigroup parent company | CGMHI | Other Citigroup subsidiaries and eliminations | Consolidating adjustments | Citigroup consolidated |
| Revenues | | | | | |
| Dividends from subsidiaries | $ | 2,592 | | $ | — | | $ | — | | $ | (2,592) | | $ | — | |
| Interest revenue | — | | 844 | | 11,806 | | — | | 12,650 | |
| Interest revenue—intercompany | 935 | | 129 | | (1,064) | | — | | — | |
| Interest expense | 1,190 | | 201 | | 568 | | — | | 1,959 | |
| Interest expense—intercompany | 56 | | 323 | | (379) | | — | | — | |
| Net interest income | $ | (311) | | $ | 449 | | $ | 10,553 | | $ | — | | $ | 10,691 | |
| Commissions and fees | $ | — | | $ | 1,893 | | $ | 1,506 | | $ | — | | $ | 3,399 | |
| Commissions and fees—intercompany | — | | 85 | | (85) | | — | | — | |
| Principal transactions | 130 | | (1,468) | | 3,571 | | — | | 2,233 | |
| Principal transactions—intercompany | (305) | | 2,220 | | (1,915) | | — | | — | |
| Other revenue | (138) | | 159 | | 1,103 | | — | | 1,124 | |
| Other revenue—intercompany | (44) | | (13) | | 57 | | — | | — | |
| Total non-interest revenues | $ | (357) | | $ | 2,876 | | $ | 4,237 | | $ | — | | $ | 6,756 | |
| Total revenues, net of interest expense | $ | 1,924 | | $ | 3,325 | | $ | 14,790 | | $ | (2,592) | | $ | 17,447 | |
| Provisions for credit losses and for benefits and claims | $ | (2) | | $ | 2 | | $ | (192) | | $ | — | | $ | (192) | |
| Operating expenses | | | | | |
| Compensation and benefits | $ | 3 | | $ | 1,347 | | $ | 4,708 | | $ | — | | $ | 6,058 | |
| Compensation and benefits—intercompany | 21 | | — | | (21) | | — | | — | |
| Other operating | 35 | | 728 | | 4,956 | | — | | 5,719 | |
| Other operating—intercompany | 2 | | 781 | | (783) | | — | | — | |
| Total operating expenses | $ | 61 | | $ | 2,856 | | $ | 8,860 | | $ | — | | $ | 11,777 | |
| Equity in undistributed income of subsidiaries | $ | 2,530 | | $ | — | | $ | — | | $ | (2,530) | | $ | — | |
Income (loss) from continuing operations before income
taxes | $ | 4,395 | | $ | 467 | | $ | 6,122 | | $ | (5,122) | | $ | 5,862 | |
| Provision (benefit) for income taxes | (249) | | 183 | | 1,259 | | — | | 1,193 | |
| Income (loss) from continuing operations | $ | 4,644 | | $ | 284 | | $ | 4,863 | | $ | (5,122) | | $ | 4,669 | |
| Income (loss) from discontinued operations, net of taxes | — | | — | | (1) | | — | | (1) | |
| Net income (loss) before attribution of noncontrolling interests | $ | 4,644 | | $ | 284 | | $ | 4,862 | | $ | (5,122) | | $ | 4,668 | |
| Noncontrolling interests | — | | — | | 24 | | — | | 24 | |
| Net income (loss) | $ | 4,644 | | $ | 284 | | $ | 4,838 | | $ | (5,122) | | $ | 4,644 | |
| Comprehensive income | | | | | |
| Add: Other comprehensive income (loss) | $ | (1,731) | | $ | (195) | | $ | 2,007 | | $ | (1,812) | | $ | (1,731) | |
| Total Citigroup comprehensive income (loss) | $ | 2,913 | | $ | 89 | | $ | 6,845 | | $ | (6,934) | | $ | 2,913 | |
| Add: Other comprehensive income attributable to noncontrolling interests | $ | — | | $ | — | | $ | (31) | | $ | — | | $ | (31) | |
| Add: Net income attributable to noncontrolling interests | — | | — | | 24 | | — | | 24 | |
| Total comprehensive income (loss) | $ | 2,913 | | $ | 89 | | $ | 6,838 | | $ | (6,934) | | $ | 2,906 | |
| | | | | |
| | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | |
| Condensed Consolidating Statements of Income and Comprehensive Income |
| Nine Months Ended September 30, 2021 |
| In millions of dollars | Citigroup parent company | CGMHI | Other Citigroup subsidiaries and eliminations | Consolidating adjustments | Citigroup consolidated |
| Revenues | | | | | |
| Dividends from subsidiaries | $ | 6,392 | | $ | — | | $ | — | | $ | (6,392) | | $ | — | |
| Interest revenue | — | | 2,829 | | 34,818 | | — | | 37,647 | |
| Interest revenue—intercompany | 2,847 | | 410 | | (3,257) | | — | | — | |
| Interest expense | 3,611 | | 645 | | 1,716 | | — | | 5,972 | |
| Interest expense—intercompany | 234 | | 982 | | (1,216) | | — | | — | |
| Net interest income | $ | (998) | | $ | 1,612 | | $ | 31,061 | | $ | — | | $ | 31,675 | |
| Commissions and fees | $ | — | | $ | 5,890 | | $ | 4,553 | | $ | — | | $ | 10,443 | |
| Commissions and fees—intercompany | (27) | | 220 | | (193) | | — | | — | |
| Principal transactions | 1,007 | | 5,109 | | 2,334 | | — | | 8,450 | |
| Principal transactions—intercompany | (1,273) | | (2,128) | | 3,401 | | — | | — | |
| Other revenue | (87) | | 401 | | 3,985 | | — | | 4,299 | |
| Other revenue—intercompany | (105) | | (41) | | 146 | | — | | — | |
| Total non-interest revenues | $ | (485) | | $ | 9,451 | | $ | 14,226 | | $ | — | | $ | 23,192 | |
| Total revenues, net of interest expense | $ | 4,909 | | $ | 11,063 | | $ | 45,287 | | $ | (6,392) | | $ | 54,867 | |
| Provisions for credit losses and for benefits and claims | $ | — | | $ | 9 | | $ | (3,322) | | $ | — | | $ | (3,313) | |
| Operating expenses | | | | | |
| Compensation and benefits | $ | 31 | | $ | 3,984 | | $ | 14,026 | | $ | — | | $ | 18,041 | |
| Compensation and benefits—intercompany | 69 | | — | | (69) | | — | | — | |
| Other operating | 60 | | 2,050 | | 14,510 | | — | | 16,620 | |
| Other operating—intercompany | 8 | | 2,269 | | (2,277) | | — | | — | |
| Total operating expenses | $ | 168 | | $ | 8,303 | | $ | 26,190 | | $ | — | | $ | 34,661 | |
| Equity in undistributed income of subsidiaries | $ | 13,270 | | $ | — | | $ | — | | $ | (13,270) | | $ | — | |
Income (loss) from continuing operations before income
taxes | $ | 18,011 | | $ | 2,751 | | $ | 22,419 | | $ | (19,662) | | $ | 23,519 | |
| Provision (benefit) for income taxes | (768) | | 516 | | 4,932 | | — | | 4,680 | |
| Income (loss) from continuing operations | $ | 18,779 | | $ | 2,235 | | $ | 17,487 | | $ | (19,662) | | $ | 18,839 | |
| Income (loss) from discontinued operations, net of taxes | — | | — | | 7 | | — | | 7 | |
| Net income (loss) before attribution of noncontrolling interests | $ | 18,779 | | $ | 2,235 | | $ | 17,494 | | $ | (19,662) | | $ | 18,846 | |
| Noncontrolling interests | — | | — | | 67 | | — | | 67 | |
| Net income (loss) | $ | 18,779 | | $ | 2,235 | | $ | 17,427 | | $ | (19,662) | | $ | 18,779 | |
| Comprehensive income | | | | | |
| Add: Other comprehensive income (loss) | $ | (4,793) | | $ | (238) | | $ | 578 | | $ | (340) | | $ | (4,793) | |
| Total Citigroup comprehensive income (loss) | $ | 13,986 | | $ | 1,997 | | $ | 18,005 | | $ | (20,002) | | $ | 13,986 | |
| Add: Other comprehensive income attributable to noncontrolling interests | $ | — | | $ | — | | $ | (71) | | $ | — | | $ | (71) | |
| Add: Net income attributable to noncontrolling interests | — | | — | | 67 | | — | | 67 | |
| Total comprehensive income (loss) | $ | 13,986 | | $ | 1,997 | | $ | 18,001 | | $ | (20,002) | | $ | 13,982 | |
Condensed Consolidating Balance Sheet
| | | | | | | | | | | | | | | | | |
| September 30, 2022 |
| In millions of dollars | Citigroup parent company | CGMHI | Other Citigroup subsidiaries and eliminations | Consolidating adjustments | Citigroup consolidated |
| Assets | | | | | |
| Cash and due from banks | $ | — | | $ | 1,405 | | $ | 25,097 | | $ | — | | $ | 26,502 | |
| Cash and due from banks—intercompany | 25 | | 5,903 | | (5,928) | | — | | — | |
| Deposits with banks, net of allowance | — | | 8,582 | | 264,523 | | — | | 273,105 | |
| Deposits with banks—intercompany | 3,000 | | 11,110 | | (14,110) | | — | | — | |
| Securities borrowed and purchased under resale agreements | — | | 284,357 | | 64,857 | | — | | 349,214 | |
| Securities borrowed and purchased under resale agreements—intercompany | — | | 20,830 | | (20,830) | | — | | — | |
| Trading account assets | 150 | | 203,977 | | 154,133 | | — | | 358,260 | |
| Trading account assets—intercompany | 155 | | 3,188 | | (3,343) | | — | | — | |
| Investments, net of allowance | 1 | | 230 | | 507,785 | | — | | 508,016 | |
| Loans, net of unearned income | — | | 1,633 | | 644,327 | | — | | 645,960 | |
| Loans, net of unearned income—intercompany | — | | — | | — | | — | | — | |
| Allowance for credit losses on loans (ACLL) | — | | — | | (16,309) | | — | | (16,309) | |
| Total loans, net | $ | — | | $ | 1,633 | | $ | 628,018 | | $ | — | | $ | 629,651 | |
| Advances to subsidiaries | $ | 138,514 | | $ | — | | $ | (138,514) | | $ | — | | $ | — | |
| Investments in subsidiaries | 219,162 | | — | | — | | (219,162) | | — | |
Other assets, net of allowance(1) | 10,066 | | 90,233 | | 136,017 | | — | | 236,316 | |
| Other assets—intercompany | 3,647 | | 84,026 | | (87,673) | | — | | — | |
| Total assets | $ | 374,720 | | $ | 715,474 | | $ | 1,510,032 | | $ | (219,162) | | $ | 2,381,064 | |
| Liabilities and equity | | | | | |
| Deposits | $ | — | | $ | — | | $ | 1,306,486 | | $ | — | | $ | 1,306,486 | |
| Deposits—intercompany | — | | — | | — | | — | | — | |
| Securities loaned and sold under repurchase agreements | — | | 183,473 | | 19,956 | | — | | 203,429 | |
| Securities loaned and sold under repurchase agreements—intercompany | — | | 65,458 | | (65,458) | | — | | — | |
| Trading account liabilities | 44 | | 116,473 | | 79,962 | | — | | 196,479 | |
| Trading account liabilities—intercompany | 660 | | 3,475 | | (4,135) | | — | | — | |
| Short-term borrowings | — | | 20,483 | | 26,885 | | — | | 47,368 | |
| Short-term borrowings—intercompany | — | | 25,335 | | (25,335) | | — | | — | |
| Long-term debt | 159,251 | | 75,887 | | 17,930 | | — | | 253,068 | |
| Long-term debt—intercompany | — | | 81,276 | | (81,276) | | — | | — | |
| Advances from subsidiaries | 13,714 | | — | | (13,714) | | — | | — | |
| Other liabilities | 2,405 | | 92,435 | | 80,277 | | — | | 175,117 | |
| Other liabilities—intercompany | 86 | | 12,092 | | (12,178) | | — | | — | |
| Stockholders’ equity | 198,560 | | 39,087 | | 180,632 | | (219,162) | | 199,117 | |
| Total liabilities and equity | $ | 374,720 | | $ | 715,474 | | $ | 1,510,032 | | $ | (219,162) | | $ | 2,381,064 | |
(1)Other assets for Citigroup parent company at September 30, 2022 included $35.8 billion of placements to Citibank and its branches, of which $26.0 billion had a remaining term of less than 30 days. | | | | | | | | | | |
| Nine Months Ended |
| September 30, 2023 | |
| In millions of dollars | Citigroup parent company | CGMHI | | |
| Total revenues, net of interest expense | $ | 10,080 | | $ | 8,494 | | | |
| Total operating expenses | 138 | | 8,856 | | | |
| Provision for credit losses | — | | 29 | | | |
| Equity in undistributed income of subsidiaries | 343 | | — | | | |
| Income (loss) from continuing operations before income taxes | $ | 10,285 | | $ | (391) | | | |
| Provision (benefit) for income taxes | (782) | | 5 | | | |
| Net income | $ | 11,067 | | $ | (396) | | | |
Condensed Consolidating Balance Sheet
| | | | | | | | | | | | | | | | | |
| December 31, 2021 |
| In millions of dollars | Citigroup parent company | CGMHI | Other Citigroup subsidiaries and eliminations | Consolidating adjustments | Citigroup consolidated |
| Assets | | | | | |
| Cash and due from banks | $ | — | | $ | 834 | | $ | 26,681 | | $ | — | | $ | 27,515 | |
| Cash and due from banks—intercompany | 17 | | 6,890 | | (6,907) | | — | | — | |
| Deposits with banks, net of allowance | — | | 7,936 | | 226,582 | | — | | 234,518 | |
| Deposits with banks—intercompany | 3,500 | | 11,005 | | (14,505) | | — | | — | |
| Securities borrowed and purchased under resale agreements | — | | 269,608 | | 57,680 | | — | | 327,288 | |
| Securities borrowed and purchased under resale agreements—intercompany | — | | 23,362 | | (23,362) | | — | | — | |
| Trading account assets | 248 | | 189,841 | | 141,856 | | — | | 331,945 | |
| Trading account assets—intercompany | 1,215 | | 1,438 | | (2,653) | | — | | — | |
| Investments, net of allowance | 1 | | 224 | | 512,597 | | — | | 512,822 | |
| Loans, net of unearned income | — | | 2,293 | | 665,474 | | — | | 667,767 | |
| Loans, net of unearned income—intercompany | — | | — | | — | | — | | — | |
| Allowance for credit losses on loans (ACLL) | — | | — | | (16,455) | | — | | (16,455) | |
| Total loans, net | $ | — | | $ | 2,293 | | $ | 649,019 | | $ | — | | $ | 651,312 | |
| Advances to subsidiaries | $ | 142,144 | | $ | — | | $ | (142,144) | | $ | — | | $ | — | |
| Investments in subsidiaries | 223,303 | | — | | — | | (223,303) | | — | |
Other assets, net of allowance(1) | 10,589 | | 69,312 | | 126,112 | | — | | 206,013 | |
| Other assets—intercompany | 2,737 | | 60,567 | | (63,304) | | — | | — | |
| Total assets | $ | 383,754 | | $ | 643,310 | | $ | 1,487,652 | | $ | (223,303) | | $ | 2,291,413 | |
| Liabilities and equity | | | | | |
| Deposits | $ | — | | $ | — | | $ | 1,317,230 | | $ | — | | $ | 1,317,230 | |
| Deposits—intercompany | — | | — | | — | | — | | — | |
| Securities loaned and sold under repurchase agreements | — | | 171,818 | | 19,467 | | — | | 191,285 | |
| Securities loaned and sold under repurchase agreements—intercompany | — | | 62,197 | | (62,197) | | — | | — | |
| Trading account liabilities | 17 | | 122,383 | | 39,129 | | — | | 161,529 | |
| Trading account liabilities—intercompany | 777 | | 500 | | (1,277) | | — | | — | |
| Short-term borrowings | — | | 13,425 | | 14,548 | | — | | 27,973 | |
| Short-term borrowings—intercompany | — | | 17,230 | | (17,230) | | — | | — | |
| Long-term debt | 164,945 | | 61,416 | | 28,013 | | — | | 254,374 | |
| Long-term debt—intercompany | — | | 76,335 | | (76,335) | | — | | — | |
| Advances from subsidiaries | 13,469 | | — | | (13,469) | | — | | — | |
| Other liabilities | 2,574 | | 68,206 | | 65,570 | | — | | 136,350 | |
| Other liabilities—intercompany | — | | 11,774 | | (11,774) | | — | | — | |
| Stockholders’ equity | 201,972 | | 38,026 | | 185,977 | | (223,303) | | 202,672 | |
| Total liabilities and equity | $ | 383,754 | | $ | 643,310 | | $ | 1,487,652 | | $ | (223,303) | | $ | 2,291,413 | |
(1)Other assets for Citigroup parent company at December 31, 2021 included $30.5 billion of placements to Citibank and its branches, of which $19.5 billion had a remaining term of less than 30 days.
| | | | | | | | | | | | | | |
| September 30, 2023 | December 31, 2022 |
| In millions of dollars | Citigroup parent company | CGMHI | Citigroup parent company | CGMHI |
| Cash and deposits with banks | $ | 3,018 | | $ | 20,385 | | $ | 3,015 | | $ | 27,122 | |
| Securities borrowed and purchased under resale agreements | — | | 271,275 | | — | | 306,273 | |
| Trading account assets | 557 | | 260,593 | | 306 | | 209,957 | |
| Advances to subsidiaries | 151,911 | | — | | 146,843 | | — | |
| Investments in subsidiary bank holding company | 175,310 | | — | | 172,721 | | — | |
| Investments in non-bank subsidiaries | 47,644 | | — | | 48,295 | | — | |
| Other assets | 14,766 | | 179,700 | | 13,788 | | 163,819 | |
| Total assets | $ | 393,206 | | $ | 731,953 | | $ | 384,968 | | $ | 707,171 | |
| Securities loaned and sold under agreements to repurchase | $ | — | | $ | 294,354 | | $ | — | | $ | 245,916 | |
| Trading account liabilities | 205 | | 104,799 | | 604 | | 115,929 | |
| Short-term borrowings | 1,500 | | 25,929 | | — | | 43,850 | |
| Long-term debt | 160,571 | | 184,859 | | 166,257 | | 172,068 | |
| Advances from subsidiaries | 17,803 | | — | | 14,562 | | — | |
| Other liabilities | 3,624 | | 83,858 | | 2,356 | | 90,570 | |
| Stockholders’ equity | 209,503 | | 38,154 | | 201,189 | | 38,838 | |
| Total liabilities and equity | $ | 393,206 | | $ | 731,953 | | $ | 384,968 | | $ | 707,171 | |
Condensed Consolidating Statement of Cash Flows
| | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, 2022 |
| In millions of dollars | Citigroup parent company | CGMHI | Other Citigroup subsidiaries and eliminations | Consolidating adjustments | Citigroup consolidated |
| Net cash provided by (used in) operating activities of continuing operations | $ | (3,688) | | $ | (29,719) | | $ | 29,237 | | $ | — | | $ | (4,170) | |
| Cash flows from investing activities of continuing operations | | | | | |
| Change in securities borrowed and purchased under agreements to resell | $ | — | | $ | (11,947) | | $ | (9,979) | | $ | — | | $ | (21,926) | |
| Change in loans | — | | — | | (5,788) | | — | | (5,788) | |
| Proceeds from sales and securitizations of loans | — | | — | | 3,077 | | — | | 3,077 | |
| Proceeds from divestitures | — | | — | | 3,242 | | | 3,242 | |
| Available-for-sale debt securities: | | | | | |
| Purchases of investments | — | | — | | (177,306) | | — | | (177,306) | |
| Proceeds from sales of investments | — | | — | | 86,454 | | — | | 86,454 | |
| Proceeds from maturities of investments | — | | — | | 118,951 | | — | | 118,951 | |
| | | | | |
| Held-to-maturity debt securities: | | | | | |
| Purchases of investments | — | | — | | (39,288) | | — | | (39,288) | |
| Proceeds from maturities of investments | — | | — | | 9,913 | | — | | 9,913 | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| Changes in investments and advances—intercompany | (1,070) | | (23,189) | | 24,259 | | — | | — | |
| Other investing activities | — | | (45) | | (4,106) | | — | | (4,151) | |
| Net cash provided by (used in) investing activities of continuing operations | $ | (1,070) | | $ | (35,181) | | $ | 9,429 | | $ | — | | $ | (26,822) | |
| Cash flows from financing activities of continuing operations | | | | | |
| Dividends paid | $ | (3,777) | | $ | (271) | | $ | 271 | | $ | — | | $ | (3,777) | |
| | | | | |
| | | | | |
| Treasury stock acquired | (3,250) | | — | | — | | — | | (3,250) | |
| Proceeds (repayments) from issuance of long-term debt, net | 11,386 | | 30,094 | | (3,032) | | — | | 38,448 | |
| Proceeds (repayments) from issuance of long-term debt—intercompany, net | — | | 12,847 | | (12,847) | | — | | — | |
| Change in deposits | — | | | 8,947 | | — | | 8,947 | |
| Change in securities loaned and sold under agreements to repurchase | — | | 14,916 | | (2,772) | | — | | 12,144 | |
| Change in short-term borrowings | — | | 7,058 | | 12,337 | | — | | 19,395 | |
| Net change in short-term borrowings and other advances—intercompany | 246 | | 207 | | (453) | | — | | — | |
| Capital contributions from (to) parent | — | | 380 | | (380) | | — | | — | |
| Other financing activities | (339) | | 4 | | (4) | | — | | (339) | |
| Net cash provided by financing activities of continuing operations | $ | 4,266 | | $ | 65,235 | | $ | 2,067 | | $ | — | | $ | 71,568 | |
| Effect of exchange rate changes on cash and due from banks | $ | — | | $ | — | | $ | (3,002) | | $ | — | | $ | (3,002) | |
| | | | | |
| | | | | |
| Change in cash and due from banks and deposits with banks | $ | (492) | | $ | 335 | | $ | 37,731 | | $ | — | | $ | 37,574 | |
| Cash and due from banks and deposits with banks at beginning of period | 3,517 | | 26,665 | | 231,851 | | — | | 262,033 | |
| Cash and due from banks and deposits with banks at end of period | $ | 3,025 | | $ | 27,000 | | $ | 269,582 | | $ | — | | $ | 299,607 | |
| Cash and due from banks | $ | 25 | | $ | 7,308 | | $ | 19,169 | | $ | — | | $ | 26,502 | |
| Deposits with banks, net of allowance | 3,000 | | 19,692 | | 250,413 | | — | | 273,105 | |
| Cash and due from banks and deposits with banks at end of period | $ | 3,025 | | $ | 27,000 | | $ | 269,582 | | $ | — | | $ | 299,607 | |
| Supplemental disclosure of cash flow information for continuing operations | | | | | |
| Cash paid (received) during the period for income taxes | $ | (1,030) | | $ | 228 | | $ | 3,486 | | $ | — | | $ | 2,684 | |
| Cash paid during the period for interest | 1,308 | | 4,785 | | 6,464 | | — | | 12,557 | |
| Non-cash investing activities | | | | | |
| | | | | |
| Transfer of investment securities from AFS to HTM | $ | — | | $ | — | | $ | 21,688 | | $ | — | | $ | 21,688 | |
| Decrease in net loans associated with divestitures reclassified to HFS | — | | — | | 16,956 | | — | | 16,956 | |
| | | | | |
| Decrease in goodwill associated with divestitures reclassified to HFS | — | | — | | 876 | | — | | 876 | |
| | | | | |
Transfers to loans HFS (Other assets) from loans | — | | — | | 4,037 | | — | | 4,037 | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| Non-cash financing activities | | | | | |
| Decrease in deposits associated with divestitures reclassified to HFS | $ | — | | $ | — | | $ | 19,691 | | $ | — | | $ | 19,691 | |
| | | | | |
| | | | | |
| | | | | |
Condensed Consolidating Statement of Cash Flows
| | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, 2021 |
| In millions of dollars | Citigroup parent company | CGMHI | Other Citigroup subsidiaries and eliminations | Consolidating adjustments | Citigroup consolidated |
| Net cash provided by (used in) operating activities of continuing operations | $ | 3,604 | | $ | 30,413 | | $ | 25,168 | | $ | — | | $ | 59,185 | |
| Cash flows from investing activities of continuing operations | | | | | |
| Change in securities borrowed and purchased under agreements to resell | $ | — | | $ | (40,065) | | $ | (2,919) | | $ | — | | $ | (42,984) | |
| Change in loans | — | | — | | 6,613 | | — | | 6,613 | |
| Proceeds from sales and securitizations of loans | — | | — | | 1,134 | | — | | 1,134 | |
| Available-for-sale debt securities: | | | | | |
| Purchases of investments | — | | — | | (164,613) | | — | | (164,613) | |
| Proceeds from sales of investments | — | | — | | 96,022 | | — | | 96,022 | |
| Proceeds from maturities of investments | — | | — | | 90,415 | | — | | 90,415 | |
| Held-to-maturity debt securities: | | | | | |
| Purchases of investments | — | | — | | (112,883) | | — | | (112,883) | |
| Proceeds from maturities of investments | — | | — | | 16,946 | | — | | 16,946 | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| Changes in investments and advances—intercompany | 3,374 | | (9,743) | | 6,369 | | — | | — | |
| Other investing activities | — | | (42) | | (2,677) | | — | | (2,719) | |
| Net cash provided by (used in) investing activities of continuing operations | $ | 3,374 | | $ | (49,850) | | $ | (65,593) | | $ | — | | $ | (112,069) | |
| Cash flows from financing activities of continuing operations | | | | | |
| Dividends paid | $ | (3,959) | | $ | (195) | | $ | 195 | | $ | — | | $ | (3,959) | |
| Issuance of preferred stock | 2,300 | | — | | — | | — | | 2,300 | |
| Redemption of preferred stock | (3,785) | | — | | — | | — | | (3,785) | |
| Treasury stock acquired | (7,448) | | — | | — | | — | | (7,448) | |
| Proceeds (repayments) from issuance of long-term debt, net | 4,660 | | 11,336 | | (18,507) | | — | | (2,511) | |
| Proceeds (repayments) from issuance of long-term debt—intercompany, net | — | | 9,084 | | (9,084) | | — | | — | |
| Change in deposits | — | | — | | 73,769 | | — | | 73,769 | |
| Change in securities loaned and sold under agreements to repurchase | — | | (2,397) | | 12,056 | | — | | 9,659 | |
| Change in short-term borrowings | — | | 2,224 | | (2,055) | | — | | 169 | |
| Net change in short-term borrowings and other advances—intercompany | 1,074 | | 1,253 | | (2,327) | | — | | — | |
| Capital contributions from (to) parent | — | | (19) | | 19 | | — | | — | |
| Other financing activities | (328) | | — | | — | | — | | (328) | |
| Net cash provided by (used in) financing activities of continuing operations | $ | (7,486) | | $ | 21,286 | | $ | 54,066 | | $ | — | | $ | 67,866 | |
| Effect of exchange rate changes on cash and due from banks | $ | — | | $ | — | | $ | (789) | | $ | — | | $ | (789) | |
| | | | | |
| | | | | |
| Change in cash and due from banks and deposits with banks | $ | (508) | | $ | 1,849 | | $ | 12,852 | | $ | — | | $ | 14,193 | |
| Cash and due from banks and deposits with banks at beginning of period | 4,516 | | 20,112 | | 284,987 | | — | | 309,615 | |
| Cash and due from banks and deposits with banks at end of period | $ | 4,008 | | $ | 21,961 | | $ | 297,839 | | $ | — | | $ | 323,808 | |
| Cash and due from banks | $ | 8 | | $ | 6,998 | | $ | 21,900 | | $ | — | | $ | 28,906 | |
| Deposits with banks, net of allowance | 4,000 | | 14,963 | | 275,939 | | — | | 294,902 | |
| Cash and due from banks and deposits with banks at end of period | $ | 4,008 | | $ | 21,961 | | $ | 297,839 | | $ | — | | $ | 323,808 | |
| Supplemental disclosure of cash flow information for continuing operations | | | | | |
| Cash paid (received) during the period for income taxes | $ | (1,757) | | $ | 809 | | $ | 4,011 | | $ | — | | $ | 3,063 | |
| Cash paid during the period for interest | 2,307 | | 1,687 | | 1,989 | | — | | 5,983 | |
| Non-cash investing activities | | | | | |
| | | | | |
| Decrease in net loans associated with divestitures reclassified to HFS | $ | — | | $ | — | | $ | 8,291 | | $ | — | | $ | 8,291 | |
| | | | | |
| | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | |
| Transfers to loans HFS from loans | — | | — | | 5,329 | | — | | 5,329 | |
| | | | | |
| | | | | |
| Non-cash financing activities | | | | | |
| Decrease in deposits associated with divestitures reclassified to HFS | $ | — | | $ | — | | $ | 6,912 | | $ | — | | $ | 6,912 | |
| | | | | |
| Decrease in long-term debt associated with divestitures reclassified to HFS | — | | — | | 521 | | — | | 521 | |
UNREGISTERED SALES OF EQUITY SECURITIES, REPURCHASES OF EQUITY SECURITIES AND DIVIDENDS
Unregistered Sales of Equity Securities
None.
Equity Security Repurchases
All large banks, including Citi, are subject to limitations on capital distributions in the event of a breach of any regulatory capital buffers, including the Stress Capital Buffer, with the degree of such restrictions based on the extent to which the buffers are breached. For additional information, see “Capital Resources—Regulatory Capital Buffers” and “Risk Factors—Strategic Risks” in Citi’s 20212022 Form 10-K.
For information on
The following table summarizes Citi’s pause of common share repurchases see “Executive Summary” above.
Duringfor the third quarter of 2022,2023:
| | | | | | | | | |
| In millions, except per share amounts | Total shares purchased | Average
price paid
per share | |
| July 2023 | | | |
Open market repurchases(1) | — | | $ | — | | |
Employee transactions(2) | — | | — | | |
| August 2023 | | | |
Open market repurchases(1) | — | | — | | |
Employee transactions(2) | — | | — | | |
| September 2023 | | | |
Open market repurchases(1) | 11.95 | | 41.82 | | |
Employee transactions(2) | — | | — | | |
| Total for 3Q23 | 11.95 | | $ | 41.82 | | |
(1) Repurchases not made pursuant to any publicly announced plan or program.
(2) During the third quarter, pursuant to Citigroup’s Board of Directors’ authorization, Citi withheld an insignificant number of shares of common stock, added to treasury stock, related to activity on employee stock programs to satisfy the employee tax requirements.
As previously announced, Citi will continue to assess common share repurchases on a quarter-by-quarter basis given uncertainty regarding regulatory capital requirements.
Dividends
Citi paid common dividends of $0.51$0.53 per share duringfor the first, second and third quartersquarter of 2022,2023, and on October 20, 2022,19, 2023, declared common dividends of $0.51$0.53 per share for the fourth quarter of 2022. As previously announced,2023. Citi intends to maintain its currenta quarterly common dividend of $0.51at least $0.53 per share, subject to financial and macroeconomic conditions as well as its Board of Directors’ approval.
As discussed above, Citi’s ability to pay common stock dividends is subject to limitations on capital distributions in the event of a breach of any regulatory capital buffers, including the Stress Capital Buffer, with the degree of such restrictions based on the extent to which the buffers are breached. For additional information, see “Capital Resources—Regulatory Capital Buffers” and “Risk Factors—Strategic Risks” in Citi’s 20212022 Form 10-K.
Any dividend on Citi’s outstanding common stock would also need to be in compliance with Citi’s obligations on its outstanding preferred stock.
On October 20, 2022,19, 2023, Citi declared preferred dividends of approximately $238$300 million for the fourth quarter of 2022.2023.
For information on the ability of Citigroup’s subsidiary depository institutions to pay dividends, see Note 1819 to the Consolidated Financial Statements in Citi’s 20212022 Form 10-K.
225OTHER INFORMATION
Insider Trading Arrangements
During the third quarter of 2023, no director or executive officer of Citi adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangement (each, as defined in Item 408 of Regulation S-K).
Amendments to By-laws
On November 1, 2023, Citi’s Board of Directors amended Citi’s By-laws (the By-laws), effective as of such date, to enhance procedural mechanics and disclosure requirements in connection with shareholder nominations of directors (or proposals of business other than nominations at an annual meeting not brought pursuant to SEC Rule 14a-8), including by: (i) amending Section 11 of Article III to require a stockholder desiring to nominate directors to make a representation confirming that such stockholder will, or is part of a group that will, solicit proxies in support of director nominees other than Citi’s nominees in accordance with SEC Rule 14a-19, or whether it will otherwise solicit proxies in support of director nominees (or a proposal, in the case of business other than nominations at an annual meeting); (ii) amending Section 11 of Article III to require a stockholder desiring to nominate directors (or propose business other than nominations at an annual meeting) to make a representation that it will provide Citi documents demonstrating that it has delivered a proxy statement and form to the holders of a percentage of Citi’s stock consistent with the stockholder’s representation to Citi; (iii) amending Section 13 of Article III to require nominating or proposing stockholders who are entities to satisfy certain informational requirements with respect to the individuals who directly or indirectly control (but are not passive investors in) such entities; (iv) amending Section 11 of Article III to require that any stockholder desiring to nominate directors at a special meeting for director elections must comply with the advance notice information requirements applicable at annual meetings; (v) amending Section 11 of Article III to require that a stockholder seeking to propose business other than nominations at an annual meeting must include the text of any proposed resolution or by-law amendment; (vi) amending Sections 11 and 12 of Article III to provide that Citi has ten days to provide the nominee questionnaire to a stockholder upon request, which would require a stockholder to approach Citi with such a request more than ten days prior to the end of the applicable nomination window to ensure the nomination is timely submitted; (vii) amending Section 11 to Article III to clarify that, with the adoption of SEC Rule 14a-19, Citi’s proxy access by-law is no longer the exclusive means for stockholder nominees to be included on Citi’s proxy card; (viii) amending Section 11 of Article III to prohibit a stockholder soliciting proxies from using the white-colored proxy card; and (ix) amending Section 11 of Article III to clarify that a nominating or proposing stockholder’s failure to provide the required information or comply with the applicable By-law requirements (including compliance with the applicable SEC rules) will result in a stockholder’s nomination or proposal of other business being disregarded. The amendments to the By-
laws also incorporated certain other modifications that provide clarification and consistency.
The foregoing description of the amendments to the By-laws does not purport to be complete and is qualified in its entirety by the text of the By-laws, as amended, a copy of which is attached as Exhibit 3.02 to this Quarterly Report on Form 10-Q and is incorporated herein by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 4th3rd day of November, 2022.2023.
CITIGROUP INC.
(Registrant)
By /s/ Mark A. L. Mason
Mark A. L. Mason
Chief Financial Officer
(Principal Financial Officer)
By /s/ Johnbull E. Okpara
Johnbull E. Okpara
Controller and Chief Accounting Officer
(Principal Accounting Officer)
GLOSSARY OF TERMS AND ACRONYMS
The following is a list of terms and acronyms that are used in this Quarterly Report on Form 10-Q and other Citigroup SEC filings and presentations.
* Denotes a Citi metric
20212022 Form 10-K: Annual Report on Form 10-K: Annual report on Form 10-K for the year ended December 31, 2021,2022, filed with the SEC.
2021 Form 10-K: Current Report on Form 8-K dated May 10, 2022 (see “Overview” above) together with the 2021 Annual Report on Form 10-K.
90+ days past due delinquency rate*: Represents consumer loans that are past due by 90 or more days, divided by that period’s total EOP loans.
ABS: Asset-backed securities
ACL: Allowance for credit losses, which is composed of the allowance for credit losses on loans (ACLL), allowance for credit losses on unfunded lending commitments (ACLUC), allowance for credit losses on HTM securities and allowance for credit losses on other assets.
ACLL: Allowance for credit losses on loans
ACLUC: Allowance for credit losses on unfunded lending commitments
Advanced Approaches: The Advanced Approaches capital framework, established through Basel III rules by the FRB, requires certain banking organizations to use an internal ratings-based approach and other methodologies to calculate risk-based capital requirements for credit risk and advanced measurement approaches to calculate risk-based capital requirements for operational risk.
AFS: Available-for-sale
ALCO: Asset Liability Committee
Amortized cost: Amount at which a financing receivable or investment is originated or acquired, adjusted for accretion or amortization of premium, discount, and net deferred fees or costs, collection of cash, charge-offs, foreign exchange, and fair value hedge accounting adjustments. For AFS securities, amortized cost is also reduced by any impairment losses recognized in earnings. Amortized cost is not reduced by the allowance for credit losses, except where explicitly presented net.
AOCI: Accumulated other comprehensive income (loss)
ARM: Adjustable rate mortgage(s)
ASC: Accounting Standards Codification under GAAP issued by the FASB.
Asia Consumer: Asia Consumer Banking
ASU: Accounting Standards Update under GAAP issued by the FASB.
AUC: Assets under custody
AUM: Assets under management. Represent assets managed on behalf of Citi’s clients.
Available liquidity resources*: Resources available at the balance sheet date to support Citi’s client and business needs, including HQLA assets; additional unencumbered securities,
including excess liquidity held at bank entities that is non-transferable to other entities within Citigroup; and available assets not already accounted for within Citi’s HQLA to support Federal Home Loan Bank (FHLB) and Federal Reserve Bank discount window borrowing capacity.
Basel III: Liquidity and capital rules adopted by the FRB based on an internationally agreed set of measures developed by the Basel Committee on Banking Supervision.
Beneficial interests issued by consolidated VIEs: Represents the interest of third-party holders of debt, equity securities or other obligations, issued by VIEs that Citi consolidates.
Benefit obligation: Refers to the projected benefit obligation for pension plans and the accumulated postretirement benefit obligation for OPEB plans.
BHC: Bank holding company
Board: Citigroup’s Board of Directors
Book value per share*: EOP common equity divided by EOP common shares outstanding.
Bps: Basis points. One basis point equals 1/100th of one percent.
Branded cards: Citi’s branded cards business with a portfolio of proprietary cards (Double Cash, Custom Cash, ThankYou(Cash, Rewards and Value cards)Value) and co-branded cards (including, among others, American Airlines and Costco).
Build: A net increase in ACL through the provision for credit losses.
Cards: Citi’s credit cards’ businesses or activities.
CCAR: Comprehensive Capital Analysis and Review
CCO: Chief Compliance Officer
CDS: Credit default swaps
CECL: Current expected credit losses
CEO: Chief Executive Officer
CET1 Capital: Common Equity Tier 1 Capital. See “Capital Resources—Components of Citigroup Capital” above for the components of CET1.
CET1 Capital ratio*: Common Equity Tier 1 Capital ratio. A primary regulatory capital ratio representing end-of-period CET1 Capital divided by total risk-weighted assets.
CFO: Chief Financial Officer
CFTC: Commodity Futures Trading Commission
CGMHI: Citigroup Global Markets Holdings Inc.
CGMI: Citigroup Global Markets Inc.
CGML: Citigroup Global Markets Limited
Citi: Citigroup Inc.
Citibank or CBNA: Citibank, N.A. (National Association)
Classifiably managed: Loans primarily evaluated for credit risk based on internal risk rating classification.
Client assets: Represent assets under management as well as custody, brokerage, administration and deposit accounts.
CLO: Collateralized loan obligations
Coincident NCL coverage ratio: A credit metric, representing the ACLL at period end divided by (the most recent quarter’s NCLs divided by 3). This ratio is expressed in months of coverage.
Collateral dependent: A loan is considered collateral dependent when repayment of the loan is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial
difficulty, including when foreclosure is deemed probable based on borrower delinquency.
Commercial cards: Provides a wide range of payment services to corporate and public sector clients worldwide through commercial card products. Services include procurement, corporate travel and entertainment, expense management services and business-to-business payment solutions.
Consent orders: In October 2020, Citigroup and Citibank entered into consent orders with the Federal Reserve and OCC that require Citigroup and Citibank to make improvements in various aspects of enterprise-wide risk management, compliance, data quality management and governance and internal controls.
CRE: Commercial real estate
Credit card spend volume*: Dollar amount of card customers’ purchases, net of returns.gross purchases. Also known as purchase sales.
Credit cycle: A period of time over which credit quality improves, deteriorates and then improves again (or vice versa). The duration of a credit cycle can vary from a couple of years to several years.
Credit derivatives: Financial instruments whose value is derived from the credit risk associated with the debt of a third-party issuer (the reference entity), which allow one party (the protection purchaser) to transfer that risk to another party (the protection seller).
Critical Audit Matters: Audit matters communicated by KPMG to Citi’s Audit Committee of the Board of Directors, relating to accounts or disclosures that are material to the consolidated financial statementsConsolidated Financial Statements and involved especially challenging, subjective or complex judgments. See “Report of Independent Registered Public Accounting Firm” in Citi’s Annual Reportsannual reports on Form 10-K.
Criticized: Criticized loans, lending-related commitments and derivative receivables that are classified as special mention, substandard and doubtful categories for regulatory purposes.
CRO: Chief Risk Officer
CTA: CurrencyCumulative translation adjustment or cumulative(also known as currency translation adjustment.adjustment). A separate component of
equity within AOCI reported net of tax. For Citi, represents the impact of translating non-USD balance sheet items into USD each period. The CTA amount in EOP AOCI is a cumulative balance, net of tax.
CVA: Credit valuation adjustment
Delinquency managed: Loans primarily evaluated for credit risk based on delinquencies, FICO scores and the value of underlying collateral.
Divestiture-related impacts: 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.
Dividend payout ratio*: Represents dividends declared per common share as a percentage of net income per diluted share.
Dodd-Frank Act: Wall Street Reform and Consumer Protection Act
DPD: Days past due
DSA: Deferred stock awards
DTA: Deferred tax asset
DVA: DebitDebt valuation adjustment
EC: European Commission
Efficiency ratio*: A ratio signifying how much of a dollar in expenses (as a percentage) it takes to generate one dollar in revenue. Represents total operating expenses divided by total revenues, net.
EMEA: Europe, Middle East and Africa
EOP: End-of-period
EPS*: Earnings per share
ERISA: Employee Retirement Income Security Act of 1974
ESG: Environmental, Social and Governance
ETR: Effective tax rate
EU: European Union
Fannie Mae: Federal National Mortgage Association
FASB: Financial Accounting Standards Board
FCA: Financial Conduct Authority
FDIC: Federal Deposit Insurance Corporation
Federal Reserve: The Board of the Governors of the Federal Reserve System
FFIEC: Federal Financial Institutions Examination Council
FHA: Federal Housing Administration
FHLB: Federal Home Loan Bank
FICO: Fair Issac Corporation
FICO score: A measure of consumer credit risk provided by credit bureaus, typically produced from statistical models by
Fair Isaac Corporation utilizing data collected by the credit bureaus.
FINRA: Financial Industry Regulatory Authority
Firm: Citigroup Inc.
FRB: Federal Reserve Board
FRBNY: Federal Reserve Bank of New York
Freddie Mac: Federal Home Loan Mortgage Corporation
Free standing derivatives: A derivative contract entered into either separate and apart from any of the Company’s other financial instruments or equity transactions, or in conjunction with some other transaction and legally detachable and separately exercisable.
FTCs: Foreign tax credit carry-forwards
FTE: Full-time employee
FVA: Funding valuation adjustment
FX: Foreign exchange
FX translation: The impact of converting non-U.S.-dollar currencies into U.S. dollars.
G7: Group of Seven nations. Countries in the G7 are Canada, France, Germany, Italy, Japan, the U.K. and the U.S.
GAAP or U.S. GAAP: Generally accepted accounting principles in the United States of America.
Ginnie Mae: Government National Mortgage Association
Global Wealth: Global Wealth Management
GSIB: Global systemically important banks
HELOC: Home equity line of credit
HFI loans: Loans that are held-for-investment (i.e., excludes loans held-for-sale).
HFS: Held-for-sale
HQLA: High-quality liquid assets. Consist of cash and certain high-quality liquid securities as defined in the LCR rule.
HTM: Held-to-maturity
Hyperinflation: Extreme economic inflation with prices rising at a very high rate in a very short time. Under U.S. GAAP, entities operating in a hyperinflationary economy need to change their functional currency to the U.S. dollar. Once an entity switches its functional currency to the U.S. dollar,change is made, the CTA balance is frozen.
IBOR: Interbank Offered Rate
ICG: Institutional Clients Group
ICRM: Independent Compliance Risk Management
IPO: Initial public offering
ISDA: International Swaps and Derivatives Association
KM: Key financial and non-financial metric used by management when evaluating consolidated and/or individual business results.
KPMG LLP: Citi’s Independent Registered Public Accounting Firm.
LATAM: Latin America, which for Citi, includes Mexico.
LCR: Liquidity coverageCoverage ratio. Represents HQLA divided by net outflows in the period.
LDA: Loss Distribution Approach
LF: Legacy Franchises
LGD: Loss given default
LIBOR: London Interbank Offered Rate
LLC: Limited Liability Company
LTD: Long-term debt
LTV: Loan-to-value. For residential real estate loans, the relationship, expressed as a percentage, between the principal amount of a loan and the appraised value of the collateral (i.e., residential real estate) securing the loan.
Master netting agreement: A single agreement with a counterparty that permits multiple transactions governed by that agreement to be terminated or accelerated and settled through a single payment in a single currency in the event of a default (e.g., bankruptcy, failure to make a required payment or securities transfer or deliver collateral or margin when due).
MBS: Mortgage-backed securities
MCA: Manager’s control assessment
MD&A: Management’s discussion and analysis
Measurement alternative: Measures equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer.
Mexico Consumer: Mexico Consumer Banking
Mexico Consumer/SBMM: Mexico Consumer Banking and Small Business and Middle-Market Banking
Mexico SBMM: Mexico Small Business and Middle-Market Banking
Moody’s: Moody’s Investor ServicesInvestors Service
MSRs: Mortgage servicing rights
MTM: Mark-to-market
N/A: Data is not applicable or available for the period presented.
NAA: Non-accrual assets. Consists of non-accrual loans and OREO.
NAL: Non-accrual loans. Loans for which interest income is not recognized on an accrual basis. Loans (other than credit card loans and certain consumer loans insured by U.S. government-sponsored agencies) are placed on non-accrual status when full payment of principal and interest is not expected, regardless of delinquency status, or when principal and interest have been in default for a period of 90 days or more unless the loan is both well secured and in the process of collection. Collateral-dependent loans are typically maintained on non-accrual status.
NAV: Net asset value
NCL(s): Net credit losses. Represents gross credit losses, less gross credit recoveries.
NCL ratio*: Represents net credit losses (recoveries) (annualized), divided by average loans for the reporting period.
Net capital rule: Rule 15c3-1 under the Securities Exchange Act of 1934.
Net interchange income: Includes the following components:
• Interchange revenue: Fees earned from merchants based on Citi’s credit and debit card customers’ sales transactions.
• Reward costs: The cost to Citi for points earned by cardholders enrolled in credit card rewards programs generally tied to sales transactions.
• Partner payments: Payments to co-brand credit card partners based on the cost of loyalty program rewards earned by cardholders on credit card transactions.
NII: Net interest income. Represents total interest revenue less total interest expenses.
NIM*: Net interest margin expressed as a yield percentage, calculated as annualized net interest income divided by average interest-earning assets for the period.
NIR: Non-interest revenues
NM: Not meaningful
Noncontrolling interests: The portion of an investment that has been consolidated by Citi that is not 100% owned by Citi.
Non-GAAP financial measure: Management uses these financial measures because it believes they provide information to enable investors to understand the underlying operational performance and trends of Citi and its businesses.
NSFR: Net stable funding ratio
O/S: Outstanding
OCC: Office of the Comptroller of the Currency
OCI: Other comprehensive income (loss)
OREO: Other real estate owned
OTTI: Other-than-temporary impairment
Over-the-counter cleared (OTC-cleared) derivatives: Derivative contracts that are negotiated and executed bilaterally, but subsequently settled via a central clearing house, such that each derivative counterparty is only exposed to the default of that clearing house.
Over-the-counter (OTC) derivatives: Derivative contracts that are negotiated, executed and settled bilaterally between two derivative counterparties, where one or both counterparties is a derivatives dealer.
Parent company: Citigroup Inc.
Participating securities: Represents unvested share-based compensation awards containing nonforfeitable rights to dividends or dividend equivalents (collectively, “dividends”), which are included in the earnings per share calculation using the two-class method. Citi grants RSUs to certain employees under its share-based compensation programs, which entitle the recipients to receive non-forfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two-class method for calculating EPS, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends.
PBWM: Personal Banking and Wealth Management
PCD:PD: Probability of default
Principal transactions revenue: Primarily trading-related revenues predominantly generated by the ICG businesses. See Note 6.
Provision for credit losses: Composed of the provision for credit losses on loans, provision for credit losses on HTM investments, provision for credit losses on other assets and provision for credit losses on unfunded lending commitments.
Provisions: Provisions for credit losses and for benefits and claims.
PSUs: Performance share units
Purchased credit-deteriorated: Purchased credit-deteriorated assets are financial assets that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company.
PCI:R&S forecast period: Purchased credit-impaired loans represented certain loans that were acquiredReasonable and deemed to be credit impaired on the acquisition date. The now superseded FASB guidance that allowed purchasers to aggregate credit-impaired loans acquired in the same fiscal quarter into one or more pools, provided that the loans had common risk characteristics (e.g., product type, LTV ratios).supportable period over which Citi forecasts future macroeconomic conditions for CECL purposes.
PD: Probability of default
Principal transactions revenue: Primarily trading-related revenues predominantly generated by the ICG businesses. See Note 6.
Provisions: Provisions for credit losses and for benefits and claims.
PSUs: Performance share units
Real GDP: Real gross domestic product is the inflation-adjusted value of the goods and services produced by labor and property located in a country.
Regulatory VAR: Daily aggregated VAR calculated in accordance with regulatory rules.
REITs: Real estate investment trusts
Release: A net decrease in ACL through the provision for credit losses.
Reported basis: Financial statements prepared under U.S. GAAP.
Results of operations that exclude certain impacts from gains or losses on sale, or one-time charges*: Represents GAAP items, excluding the impact of gains or losses on sales, or one-time charges (e.g., the loss on sale related to the sale of Citi’s consumer banking business in Australia).
Results of operations that exclude the impact of FX translation*: Represents GAAP items, excluding the impact of FX translation, whereby the prior periods’ foreign currency balances are translated into U.S. dollars at the current period’s conversion rates (also known as constant dollar). GAAP measures excluding the impact of FX translation are non-GAAP financial measures.
Retail services: Citi’s U.S. retail services cards business with a portfolio of co-brand and private label relationships (including, among others, The Home Depot, Sears, Best Buy, Sears and Macy’s).
RMI: A non-partisan, non-profit organization that works to transform global energy systems across the real economy. Citi joined the RMI Center for Climate-Aligned Finance in 2021.
ROA*: Return on assets. Represents net income (annualized), divided by average assets for the period.
ROCE*: Return on Common Equity. Represents net income less preferred dividends (both annualized), divided by average common equity for the period.
ROE: Return on equity. Represents net income less preferred dividends (both annualized), divided by average Citigroup equity for the period.
RoTCE*: Return on tangible common equity. Represents net income less preferred dividends (both annualized), divided by average tangible common equity for the period.
RSU(s): Restricted stock units
RWA: Risk-weighted assets. Basel III establishes two comprehensive approaches for calculating RWA (the Standardized Approach and the Advanced Approaches), which include capital requirements for credit risk, market risk and in the case of Basel IIIoperational risk for Advanced also operational risk.Approaches. Key differences in the calculation of credit risk RWA between the Standardized and Advanced approachesApproaches are that for Basel III Advanced, credit risk RWA is based on risk-sensitive approaches that largely rely on the use of internal credit models and parameters, whereas for Basel III Standardized, credit risk RWA is generally based on supervisory risk-weightings,risk weightings, which vary primarily by counterparty type and asset class. Market risk RWA is calculated on a generally consistent basis between Basel III Standardized Approach and Basel III Advanced Approaches.
S&P: Standard and Poor’s Global Ratings
SCB: Stress Capital Buffer
SCF: Subscription credit facility. SCFs are revolving credit facilities provided to private equity funds that are secured against the fund’s investors’ capital commitments.
SEC: The U.S. Securities and Exchange Commission
Securities financing agreements: Include resale, repurchase, securities borrowed and securities loaned agreements.
SLR: Supplementary Leverage ratio. Represents Tier 1 Capital divided by total leverage exposure.Total Leverage Exposure.
SOFR: Secured Overnight Financing Rate
SPEs: Special purpose entities
Standardized Approach: Established through Basel III, the Standardized Approach aligns regulatory capital requirements more closely with the key elements of banking risk by introducing a wider differentiation of risk weights and a wider recognition of credit risk mitigation techniques, while avoiding excessive complexity. Accordingly, the Standardized Approach produces capital ratios more in line with the actual economic risks that banks are facing.
Structured notes: Financial instruments whose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates or other market variables. The notes typically contain embedded (but not separable or detachable) derivatives. Contractual cash flows for principal, interest or both can vary in amount and timing throughout the life of the note based on non-traditional indexes or non-traditional uses of traditional interest rates or indexes.
Tangible book value per share (TBVPS)*: Represents tangible common equity divided by EOP common shares outstanding.
Tangible common equity (TCE): Represents common stockholders’ equity less goodwill and identifiable intangible assets, other than MSRs.
Taxable-equivalentTaxable equivalent basis: Represents the total revenue, net of interest expense for the business, adjusted for revenue from investments that receive tax credits and the impact of tax-exempt securities. This metric presents results on a level comparable to taxable investments and securities. GAAP measures on taxable equivalent basis, including the metrics derived from these measures, are non-GAAP financial measures.
TDR: Troubled debt restructuring. Prior to January 1, 2023, a TDR iswas deemed to occur when the Company modifiesmodified the original terms of a loan agreement by granting a concession to a borrower that iswas experiencing financial difficulty. Loans with short-term and other insignificant modifications that are not considered concessions arewere not TDRs. The accounting guidance for TDRs was eliminated with the adoption of ASU 2022-02. See Note 1 for more information.
TLAC: Total loss-absorbing capacity
Total ACL: Allowance for credit losses, which comprises the allowance for credit losses on loans (ACLL), allowance for credit losses on unfunded lending commitments (ACLUC), allowance for credit losses on HTM securities and allowance for credit losses on other assets.
Total payout ratio*: Represents total common dividends declared plus common share repurchases as a percentage of net income available to common shareholders.
Transformation: Citi has embarked on a multiyear transformation, with the target outcome to change Citi’s business and operating models such that they simultaneously strengthen risk and controls and improve Citi’s value to customers, clients and shareholders.
Unaudited: Financial statements and information that have not been subjected to auditing procedures sufficient to permit an independent certified public accountant to express an opinion.
U.S. government agencies: U.S. government agencies include, but are not limited to, agencies such as Ginnie Mae and FHA, and do not include Fannie Mae and Freddie Mac, which are U.S. government-sponsored enterprises (U.S. GSEs). In general, obligations of U.S. government agencies are fully and explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government in the event of a default.
U.S. Treasury: U.S. Department of the Treasury
VAR: Value at risk. A measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment.
VIEs: Variable interest entities
Wallet: Proportion of fee revenue based on estimates of investment banking fees generated across the industry (i.e., the revenue wallet) from investment banking transactions in M&A, equity and debt underwriting, and loan syndications.
EXHIBIT INDEX
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| 101.01+ | | Financial statements from the Quarterly Report on Form 10-Q of Citigroup for the quarterly period ended September 30, 2022,2023, filed on November 4, 2022,3, 2023, formatted in Inline XBRL: (i) the Consolidated Statement of Income, (ii) the Consolidated Balance Sheet, (iii) the Consolidated Statement of Changes in Stockholders’ Equity, (iv) the Consolidated Statement of Cash Flows and (v) the Notes to the Consolidated Financial Statements. |
| | |
| 104 | | See the cover page of this Quarterly Report on Form 10-Q, formatted in Inline XBRL. |
The total amount of securities authorized pursuant to any instrument defining rights of holders of long-term debt of the Company does not exceed 10% of the total assets of the Company and its consolidated subsidiaries. The Company will furnish copies of any such instrument to the SEC upon request.
+ Filed herewith.
* Denotes a management contract or compensatory plan or arrangement.
+ Filed herewith.
NOTES
