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C Citigroup

Filed: 3 Nov 20, 7:00pm
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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, 2020

OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from  to
Commission file number 1-9924
Citigroup Inc.
(Exact name of registrant as specified in its charter)
Delaware52-1568099
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
388 Greenwich Street,New YorkNY10013
(Address of principal executive offices)
(Zip code)
(212) 559-1000
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934 formatted in Inline XBRL: See Exhibit 99.01
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes     No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Yes     
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes     No 
Number of shares of Citigroup Inc. common stock outstanding on September 30, 2020: 2,081,959,678

Available on the web at www.citigroup.com



CITIGROUP’S THIRD QUARTER 2020—FORM 10-Q
OVERVIEW
MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Executive Summary
COVID-19 Pandemic Overview
    Risk Factors
Summary of Selected Financial Data
SEGMENT AND BUSINESS—INCOME (LOSS)
AND REVENUES
SEGMENT BALANCE SHEET
Global Consumer Banking (GCB)
North America GCB
Latin America GCB
Asia GCB
Institutional Clients Group
Corporate/Other
OFF-BALANCE SHEET ARRANGEMENTS
CAPITAL RESOURCES
MANAGING GLOBAL RISK TABLE OF
CONTENTS
MANAGING GLOBAL RISK
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



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, 2019 (2019 Annual Report on Form 10-K) and Citigroup’s Quarterly Reports on Form 10-Q for the quarter ended March 31, 2020 (First Quarter of 2020 Form 10-Q) and for the quarter ended June 30, 2020 (Second Quarter of 2020 Form 10-Q).
Additional information about Citigroup is available on Citi’s website at www.citigroup.com. Citigroup’s annual reports on Form 10-K, quarterly reports on Form 10-Q and proxy statements, as well as other filings with the U.S. Securities and Exchange Commission (SEC), are available free of charge through Citi’s website by clicking on the “Investors” tab and selecting “SEC Filings,” then “Citigroup Inc.” The SEC’s website also contains current reports on Form 8-K and other information regarding Citi at www.sec.gov.
Certain reclassifications, including a realignment of certain businesses, have been made to the prior periods’ financial statements and disclosures to conform to the current period’s presentation. For additional information on certain recent reclassifications, see Note 1 to the Consolidated Financial Statements below and Notes 1 and 3 to the Consolidated Financial Statements in Citi’s 2019 Annual Report on Form 10-K.
Throughout this report, “Citigroup,” “Citi” and “the Company” refer to Citigroup Inc. and its consolidated subsidiaries.

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Citigroup is managed pursuant to two business segments: Global Consumer Banking and Institutional Clients Group, with the remaining operations in Corporate/Other.
c-20200930_g1.jpg
The following are the four regions in which Citigroup operates. The regional results are fully reflected in the segment results above.
c-20200930_g2.jpg

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

EXECUTIVE SUMMARY

Third Quarter of 2020—Results Reflected Solid Performance and Continued Financial Strength and Operational Resilience Despite a Challenging Macroeconomic Environment
As described further throughout this Executive Summary, during the third quarter of 2020, Citi demonstrated solid performance and continued financial strength and operational resilience, despite continued weakness in economic conditions during the quarter due to the COVID-19 pandemic:

Citi’s revenues were impacted by the challenging environment, declining 7% from the prior-year period, as strong performance in fixed income markets, investment banking, equity markets and the private bank in Institutional Clients Group (ICG) was more than offset by lower revenues in Global Consumer Banking (GCB), reflecting declines across all regions, and lower revenues in Corporate/Other.
Citi’s results included a $400 million civil money penalty, recorded in expenses in Corporate/Other, in connection with a consent order Citibank entered into with the Office of the Comptroller of the Currency (for additional information, see below). Citi’s expenses also reflected continued investments in infrastructure, risk management and controls.
Citi’s cost of credit increased 8%, meaningfully lower relative to the first half of 2020, as an increase in ICG’s allowance for credit losses (ACL) was partially offset by decreases in GCB and Corporate/Other.
Citi had broad-based deposit growth across ICG and GCB, reflecting strong client engagement, as well as an elevated level of liquidity in the financial system, while also strengthening Citi’s available liquidity.
Citi returned $1.1 billion of capital to its common shareholders in the form of dividends.
Citi continued to support its employees, customers and clients as well as the broader economy during this challenging time (see “COVID-19 Pandemic Overview” below), while maintaining a strong balance sheet.

The economic outlook for the remainder of 2020 has been lowered, and continued uncertainties around the pandemic, including, among others, the duration and severity of the economic and public health impacts, have created a more volatile operating environment that will likely continue to negatively impact Citi’s businesses and results in the near term.
For a discussion of risks and uncertainties related to the pandemic, see “COVID-19 Pandemic Overview,” “Risk Factors” and each respective business’s results of operations below. For a discussion of additional risks and uncertainties that could affect Citi, see “Forward-Looking Statements” below as well as each respective business’s results of operations and “Managing Global Risk” and “Risk Factors” in Citi’s 2019 Annual Report on Form 10-K.


On October 7, 2020, the Board of Governors of the Federal Reserve System (Federal Reserve Board) and the Office of the Comptroller of the Currency (OCC) issued consent orders with Citigroup and Citibank, respectively. The consent orders require that Citigroup and Citibank submit acceptable plans to the Federal Reserve Board and the OCC, on various timelines, relating principally to various aspects of risk management, compliance, data quality management and governance, and internal controls. Citibank also entered into a consent order with the OCC to pay the $400 million civil money penalty. Citi is committed to thoroughly addressing the matters identified by the consent orders, as an essential part of Citi’s broader efforts to enhance its infrastructure, governance and processes. Citi has centralized its program management and is making the strengthening of its risk and control environment a further priority for the Company. Citi is focused on committing all of the necessary resources for this multi-year transformation, while continuing to serve its customers and clients. For additional information regarding the consent orders, see Citi’s Current Report on Form 8-K filed with the SEC on October 7, 2020.

Third Quarter of 2020 Results Summary

Citigroup
Citigroup reported net income of $3.2 billion, or $1.40 per share, compared to net income of $4.9 billion, or $2.07 per share, in the prior-year period. Net income declined 34%, driven by the lower revenues, the higher expenses, higher credit costs and a higher effective tax rate. Citigroup’s effective tax rate was 20% in the current quarter compared to 18% in the prior-year period, reflecting the impact of the non-deductible civil money penalty this quarter. Earnings per share decreased 32%, primarily driven by the decline in net income.
Citigroup revenues of $17.3 billion decreased 7% from the prior-year period, primarily reflecting the lower revenues in GCB and Corporate/Other, partially offset by higher revenues in ICG.
Citigroup’s end-of-period loans decreased 4% from the prior-year period to $667 billion. Excluding the impact of foreign currency translation into U.S. dollars for reporting purposes (FX translation), Citigroup’s end-of-period loans also declined 4%, driven by a 3% aggregate decline in GCB and ICG, reflecting a higher level of repayments in GCB and ICG, reduced drawdowns in ICG and lower spend activity in GCB. Citigroup’s end-of-period deposits increased 16% to $1.3 trillion, as reported and excluding the impact of FX translation, primarily driven by 17% growth in GCB and 16% growth in ICG. (Citi’s results of operations excluding the impact of FX translation are non-GAAP financial measures.)




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Expenses
Citigroup operating expenses of $11.0 billion increased 5% versus the prior-year period, as the civil money penalty, investments in infrastructure, risk management and controls, higher compensation and pandemic-related expenses more than offset efficiency savings and reductions in marketing and other discretionary spending. Year-over-year, GCB operating expenses declined 3%, while ICG expenses increased 3% and Corporate/Other expenses increased to $969 million compared to $485 million in the prior-year period.

Cost of Credit
Citi’s total provisions for credit losses and for benefits and claims of $2.3 billion increased 8% from the prior-year period, largely reflecting the increase in ICG’s ACL reserves, partially offset by the decreases in GCB and Corporate/Other. Citi’s ACL build was $0.3 billion, primarily reflecting the impact of continued uncertainty surrounding the macroeconomic outlook, partially offset by lower volumes in GCB and the ACL release in Corporate/Other, as well as the impact of a change in estimate effected by a change in accounting principle for third-party collection costs in international GCB. For further information on the drivers of Citi’s ACL build, see “Significant Accounting Policies and Significant Estimates—Allowance for Credit Losses” below.
Net credit losses of $1.9 billion were largely unchanged. Consumer net credit losses of $1.6 billion decreased 12%, primarily reflecting lower loan volumes given higher payment rates and lower spending activity, as well as the benefits of relief programs. Corporate net credit losses increased from $110 million to $325 million, primarily driven by write-offs across various sectors, and were largely offset by the release of previously established ACL reserves.
For additional information on Citi’s consumer and corporate credit costs and ACL, see each respective business’s results of operations and “Credit Risk” below.

Capital
Citigroup’s Common Equity Tier 1 Capital ratio was 11.8% as of September 30, 2020, based on the Basel III Advanced Approaches framework for determining risk-weighted assets, compared to 11.6% as of September 30, 2019, based on the Basel III Standardized Approach for determining risk-weighted assets. The increase in the ratio primarily reflected net income.
Citigroup’s Supplementary Leverage ratio was 6.8% as of September 30, 2020, compared to 6.3% as of September 30, 2019. The increase was primarily driven by a decrease in Total Leverage Exposure reflecting the benefit of temporary relief granted by the Federal Reserve Board. For additional information on Citi’s capital ratios and related components, see “Capital Resources” below.


Global Consumer Banking
GCB net income of $1.1 billion declined 30% from the prior-year period. Excluding the impact of FX translation, net income declined 29%, reflecting lower revenues, partially offset by lower cost of credit and lower expenses. GCB operating expenses of $4.2 billion decreased 3%. Excluding the impact of FX translation, expenses decreased 2%, as lower volume-related expenses, reductions in marketing and other discretionary spending and efficiency savings were partially offset by increases in pandemic-related expenses.
GCB revenues of $7.2 billion decreased 13%. Excluding the impact of FX translation, revenues decreased 12%, as strong deposit growth and momentum in Asia wealth management were more than offset by lower card volumes and the impact of lower interest rates across all regions, reflecting the continued impact from the pandemic.
North America GCB revenues of $4.5 billion decreased 13%, with lower revenues across Citi-branded cards, Citi retail services and retail banking. Citi-branded cards revenues of $2.1 billion decreased 12%, reflecting lower purchase sales and higher payment rates driving lower average loans. Citi retail services revenues of $1.4 billion decreased 21%, reflecting lower average loans as well as higher partner payments. Retail banking revenues of $1.1 billion decreased 2%, as the benefit of stronger deposit volumes and an improvement in mortgage revenues were more than offset by lower deposit spreads.
North America GCB average deposits of $182 billion increased 19% year-over-year, average retail banking loans of $53 billion increased 10% year-over-year and assets under management of $73 billion increased 7%. Average Citi-branded card loans of $81 billion decreased 10% and Citi-branded card purchase sales of $86 billion decreased 9%, driven by reduced customer activity related to the pandemic. The decline in average Citi-branded cards loans was also due to higher payment rates. Average Citi retail services loans of $45 billion decreased 10% and Citi retail services purchase sales of $20 billion decreased 8%, both driven by reduced customer activity. For additional information on the results of operations of North America GCB for the third quarter of 2020, see “Global Consumer Banking—North America GCB” below.
International GCB revenues (consisting of Latin America GCB and Asia GCB (which includes the results of operations in certain EMEA countries)) of $2.6 billion declined 15% versus the prior-year period. Excluding the impact of FX translation, international GCB revenues declined 12%, largely reflecting the impact of the pandemic. On this basis, Latin America GCB revenues decreased 10%, driven by lower average loans and lower interest rates, partially offset by strong deposit growth. Asia GCB revenues decreased 13%, as lower card purchase sales and lower interest rates were partially offset by strong investment revenues. For additional information on the results of operations of Latin America GCB and Asia GCB for the third quarter of 2020, including the impact of FX translation, see “Global Consumer Banking—Latin America GCB” and “Global Consumer Banking—Asia GCB” below.
Year-over-year, international GCB average deposits of $138 billion increased 13%, average retail banking loans of
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$72 billion increased 3%, assets under management of $126 billion increased 6%, average card loans of $21 billion decreased 11% and card purchase sales of $22 billion decreased 18%, all excluding the impact of FX translation.

Institutional Clients Group
ICG net income of $2.9 billion decreased 10%, as the revenue growth was more than offset by higher cost of credit and higher expenses. ICG operating expenses increased 3% to $5.8 billion, largely driven by continued investments in infrastructure, risk management and controls, as well as higher compensation costs.
ICG revenues of $10.4 billion increased 5%, reflecting a 16% increase in Markets and securities services revenues, partially offset by a 4% decline in Banking revenues. The decrease in Banking revenues included the impact of $124 million of losses on loan hedges related to corporate lending and the private bank, compared to losses of $33 million related to corporate lending in the prior-year period.
Banking revenues of $5.3 billion (excluding the impact of losses on loan hedges) decreased 2%, as increases in investment banking and the private bank were more than offset by declines in treasury and trade solutions and corporate lending. Investment banking revenues of $1.4 billion increased 13%, reflecting solid growth in capital markets, particularly in equity underwriting. Advisory revenues decreased 41% to $163 million, while equity underwriting revenues increased 96% to $484 million and debt underwriting revenues increased 5% to $740 million.
Treasury and trade solutions revenues of $2.4 billion declined 6%, and 4% excluding the impact of FX translation, as strong client engagement and growth in deposits were more than offset by the impact of lower interest rates and reduced commercial card spend. Private bank revenues of $938 million increased 8% (excluding gain (loss) on loan hedges), driven by increased capital markets activity and improved managed investments revenues, as well as higher lending and deposit volumes, partially offset by lower deposit spreads. Corporate lending revenues of $414 million declined 39%. Excluding the impact of losses on loan hedges, corporate lending revenues of $538 million declined 25%, as higher loan volumes were more than offset by lower spreads.
Markets and securities services revenues of $5.2 billion increased 16%. Fixed income markets revenues of $3.8 billion increased 18%, driven by strong performance across spread products and commodities. Equity markets revenues of $875 million increased 15%, as solid performance in cash equities and derivatives was partially offset by lower revenues in prime finance. Securities services revenues of $631 million decreased 5%, and 4% excluding the impact of FX translation, as higher deposit volumes were more than offset by lower spreads. For additional information on the results of operations of ICG for the third quarter of 2020, see “Institutional Clients Group” below.


Corporate/Other
Corporate/Other net loss was $723 million in the third quarter of 2020, compared to net income of $191 million in the prior-year period, reflecting the lower revenues and increased expenses, partially offset by a larger ACL release on the legacy portfolio. Operating expenses of $969 million increased significantly, as the wind-down of legacy assets was more than offset by the civil money penalty, investments in infrastructure, risk management and controls and incremental costs associated with the pandemic. Corporate/Other revenues of $(224) million compared to $434 million in the prior-year period, reflecting the wind-down of legacy assets, the impact of lower rates and marks on securities. For additional information on the results of operations of Corporate/Other for the third quarter of 2020, see “Corporate/Other” below.

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COVID-19 PANDEMIC OVERVIEW
In addition to the widespread public health implications, the emergence of the COVID-19 pandemic has had an extraordinary impact on macroeconomic conditions in the U.S. and around the world. As discussed below and elsewhere throughout this Form 10-Q, Citi’s businesses, results of operations and financial condition have been impacted by economic dislocations caused by the pandemic. Citi had builds to its allowance for credit losses (ACL) of approximately $10.8 billion during the first nine months of 2020, bringing its ACL to approximately $28.9 billion at September 30, 2020, with an allowance for credit losses on loans (ACLL) reserve ratio of 4.00% on funded loans. For additional information, see “Covid-19 Pandemic Overview—Impact of CECL on Citi’s Allowance for Credit Losses” below.
Despite these impacts, Citi has remained well positioned from a capital and liquidity perspective and has maintained strong business operations. At September 30, 2020, Citi had a Common Equity Tier 1 Capital ratio of 11.8%, a Supplementary Leverage ratio of 6.8% and a Liquidity Coverage ratio of 118%, each well above regulatory minimums, with approximately $965 billion of available liquidity resources (see “Capital Resources” and “Managing Global RiskLiquidity Risk” below).
Governments and central banks globally have taken a series of aggressive actions to support the economy and mitigate the systemic impacts of the pandemic, and Citi continues to proactively assess and utilize these measures where appropriate. For additional information on Citi’s pandemic response and other pandemic-related information, see Citi’s First and Second Quarters 2020 Forms 10-Q.

Citi’s COVID-19 Pandemic ResponseSupporting Employees, Customers and Communities
The health and safety of Citi’s employees and their families, as well as Citi’s customers, clients and communities it serves, are of the utmost importance. As the public health crisis has unfolded, Citi has continued to take proactive measures to preserve their well-being while maintaining its ability to serve customers and clients.

Citi Employees
The majority of Citi employees—nearly two-thirds—around the world are working remotely.
Citi is pursuing a slow and measured reentry in some locations where local conditions permit, beginning with only a small number of colleagues.
Citi’s response teams are consulting with health experts and following local government guidelines in determining the safest return to the office for each location.
Citi has reconfigured its sites and implemented new protocols to make work environments as safe as possible in offices, branches and ATMs.
Citi is providing additional health and well-being resources for colleagues, plus enhanced flexibility and paid time off for colleagues impacted by COVID-19.
The company continues to monitor the situation as it evolves and will review and update operations as needed.


Citi Communities
In addition to Citi’s core business activities, the Company is supporting those immediately impacted by this crisis through philanthropic efforts around the world. Citi and the Citi Foundation have committed more than $100 million to date in support of COVID-19-related community relief and economic recovery efforts globally. These contributions include over $4 million raised through an employee donation matching program to further global relief efforts—the “Double the Good” employee donation campaign. Having exceeded the $2 million goal in donations, Citi is donating $500,000 to each of the four organizations selected by Citi’s regions to address unique challenges: United Nations Development Programme (Asia Pacific), International Rescue Committee (Europe, Middle East and Africa), the International Organization for Migration (Latin America) and Direct Relief (North America).

Citi Consumer Loan Relief Programs
As previously disclosed, Citi was one of the first banks in the U.S. to announce assistance measures for pandemic-impacted consumer customers. Citi has offered a wide array of programs globally for different types of products, providing short- and medium-term relief to customers as a result of the pandemic. The relief has primarily been in the form of payment deferrals and fee waivers. These consumer relief programs have mainly been provided to GCB customers, with a small portion of customers reported within Corporate/Other. For further information on Citi’s measures to support its customers and clients in response to the pandemic, see “COVID-19 Overview” in the First and Second Quarters of 2020 Forms 10-Q.
The table below provides information on the number of loan modifications, the associated enrollment and outstanding balances as of September 30, 2020, for Citi’s pandemic-related relief programs, excluding troubled debt restructurings (for additional information, see “Troubled Debt Restructuring (TDR) Relief” below).






















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For the Three Months Ended September 30, 2020For the Nine Months Ended September 30, 2020As of
September 30, 2020
Program details
In millions of dollars,
except number of loans modified
Number of loans modified
Enrollment balance(1)
Number of loans modified
Enrollment balance(2)
EOP balance(3)
% of total loan portfolio(4)
North America
Credit cards445,974 $1,382 2,355,572 $8,322 $921 %Waivers on late fees and deferral of minimum payments for two to four payment cycles
Residential first mortgages877 266 8,333 3,453 2,220 Extending existing payment deferral options and suspending foreclosures into the fourth quarter of 2020
Home equity loans582 50 5,005 600 439 Extending existing payment deferral options
Personal, small business and other2,524 27 21,041 309 12 — Waivers on fees including non-Citi ATM fees and monthly service fees as well as minimum payment deferrals for up to six months
Total North America
449,957 $1,725 2,389,951 $12,684 $3,592 2 %
International
Asia
Credit cards100,334 $161 1,151,790 $2,136 $219 %Payment deferrals for up to one to six months, interest and fee waivers and reductions in minimum due payments; balance conversion programs
Residential first mortgages602 106 44,737 3,642 721 Payment deferrals for up to 12 months, interest and fee waivers and reductions in minimum due payments
Personal, small business and other8,096 61 200,297 1,661 248 Payment deferrals for up to three months for revolving products and overdrafts or up to 12 months for installment loans, interest and fee waivers, and reductions in minimum due payments
Latin America
Credit cards— — 641,038 1,136 17 — Minimum payment deferrals for up to six months
Residential first mortgages3,836 61 26,251 852 237 Installment payment deferral for up to six months to be recovered as a balloon payment at the end of the loan
Personal, small business and other— — 184,966 1,451 912 17 Installment payment deferral for up to six months, temporary interest rate reductions
Total international112,868 $389 2,249,079 $10,878 $2,354 3 %
Total consumer562,825 $2,114 4,639,030 $23,562 $5,946 2 %

(1)    Enrollment balances represent the aggregate amounts enrolled during the third quarter of 2020.
(2)    Enrollment balances represent the aggregate amounts enrolled during the nine months ended September 30, 2020.
(3)    Total outstanding balance on loans enrolled in consumer relief programs as of September 30, 2020. Reserves for these loans are calculated in accordance with the CECL standard.
(4)    The percentage denominator is the total ending-period loans balance for the respective product and region as of September 30, 2020.


As set forth in the table above, during the third quarter of 2020, consumer relief programs, excluding TDRs, had approximately 0.6 million of loan modifications, with associated enrollment balances of approximately $2.1 billion. For the nine months ended September 30, 2020, Citi’s
consumer relief programs had approximately 4.6 million of loan modifications with approximately $23.6 billion of associated enrollment balances, excluding TDRs. Approximately $5.9 billion of loans under the consumer loan relief programs were outstanding as of September 30, 2020,
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representing approximately 2% of Citi’s total consumer loan balance.
Citi’s North America credit card programs had the largest number of loan modifications. As these credit card relief programs were introduced during the first half of 2020, and offered a deferral of minimum payments for two to four payment cycles, most customers rolled off the programs. By the end of the third quarter, approximately 89% of credit card customers had rolled off these programs, of which approximately 86% have continued to make payments. As of September 30, 2020, Citi had approximately $0.9 billion of loan balances outstanding under the credit card relief programs. For customers enrolled in mortgage forbearance programs, Citi’s subservicer offered payment deferrals for up to 12 months, and by the end of the third quarter, approximately 23% of mortgage customers had rolled off the program, of which approximately 88% have continued to make payments. As of September 30, 2020, Citi had approximately $2.2 billion of mortgage loan balances outstanding. As of September 30, 2020, Citi had approximately $3.6 billion of loan balances outstanding under its consumer relief programs in North America.
In Asia, approximately 91% of customers had rolled off the consumer relief programs as of September 30, 2020, of which approximately 94% have continued to make payments. As of September 30, 2020, Citi had approximately $1.2 billion of loan balances outstanding under Asia consumer relief programs.
In Mexico, approximately 93% of customers had rolled off the consumer relief programs as of September 30, 2020, of which approximately 90% have continued to make payments. As of September 30, 2020, Citi had approximately $1.2 billion of loan balances outstanding under Mexico consumer relief programs.

Citi Corporate Loan Relief Programs
Citi has modified the contractual terms of corporate loans to certain borrowers impacted by the pandemic, primarily commercial banking (small business) and private bank customers. These modifications consist primarily of deferrals in the payment of principal and/or interest that Citi has provided during the second and third quarters of 2020 in response to borrower requests, as well as those provided pursuant to government-mandated relief programs.
The table below shows Citi’s outstanding corporate loan modifications, excluding TDRs. Approximately $1.4 billion of the $8.2 billion presented below relates to modifications provided in the third quarter.
September 30, 2020
In millions of dollarsTotal credit exposureFundedUnfunded
Corporate loans$6,127 $5,305 $822 
Private bank loans2,117 2,105 12 
Total corporate$8,244 $7,410 $834 



Citi’s Management of COVID-19 Pandemic Risks
Citi’s dedicated continuity of business and crisis management groups are managing Citi’s protocols in response to the pandemic. Among other things, the protocols address the prioritization of critical processing; ability of staff and third parties to support these processes from remote work locations; deployment of new hardware to support technology needs; and ongoing monitoring to assess controls and service levels. For additional information about Citi’s management of pandemic-related risks, see Citi’s First Quarter of 2020 Form 10-Q.

For the remainder of 2020, Citi expects that overall revenues, including GCB, ICG and Corporate/Other revenues, will likely continue to be adversely impacted by the lower interest rate environment. GCB and ICG revenues will also be affected by the challenging macroeconomic and market conditions, including the effects related to the severity and duration of the pandemic as well as the responses of governments, customers and clients. In particular, each GCB region is expected to continue to experience the adverse impacts from the pandemic on customer activity, including lower card purchase sales and loan volumes, while Latin America GCB is also likely to continue to experience a more pronounced impact from macroeconomic weakness in Mexico. Citi also expects that ICG Markets and investment banking revenues will continue to reflect overall market conditions, including a normalization of business trends compared to the first nine months of 2020 and a seasonal decline in the fourth quarter.
In addition, Citi expects to incur higher expenses, as it continues to accelerate its investments in infrastructure, risk management and controls, including its efforts to improve the risk and control environment, as well as to comply with the consent orders (see “Executive Summary” above). Citi’s expenses will also be impacted by uncertainties related to the pandemic, including its continued efforts to protect and support employees and to support customers and clients digitally.
Moreover, in the near term, Citi expects to experience net credit losses similar to the third quarter of 2020, although this may vary by business and region and is dependent on future macroeconomic conditions. If Citi’s third quarter of 2020 macroeconomic forecast assumptions are realized, the Company does not expect additional reserve builds on its existing portfolios (for additional information, see “Significant Accounting Policies and Significant Estimates” below); however, the overall level of reserves remains dependent on the evolving economic and public health environments relative to this forecast, as well as new lending volumes. For additional information about significant risks to Citi from the pandemic, see “Risk Factors” below.



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Citi’s Allowance for Credit Losses (ACL)
The table below shows the impact of Citi’s adoption of CECL as of January 1, 2020 and the ACL during the first, second and third quarters of 2020. For information on the drivers of Citi’s ACL build in the third quarter, see “Significant Accounting Policies and Significant Estimates—Allowance for Credit Losses” below. For additional information on Citi’s accounting policy on accounting for credit losses under CECL, see Note 14 to the Consolidated Financial Statements and Note 1 in Citi’s First Quarter of 2020 Form 10-Q.





 Allowance for credit losses (ACL)
In millions of dollarsBalance Dec. 31, 2019CECL transition impact1Q20 build1Q20 FX/OtherBalance Mar. 31, 20202Q20 build2Q20 FX/OtherBalance Jun. 30, 20203Q20 build/(release)3Q20 FX/OtherBalance Sept. 30, 2020
ACLL/EOP loans Sept. 30, 2020(1)
Cards(1)
$8,419 $4,456 $2,420 $(215)$15,080 $1,572 $50 $16,702 $(21)$56 $16,737 11.42 %
All other GCB
1,200 566 413 (217)1,962 388 36 2,386 (67)52 2,371 
Global Consumer Banking$9,619 $5,022 $2,833 $(432)$17,042 $1,960 $86 $19,088 $(88)$108 $19,108 7.01 %
Institutional Clients Group2,886 (717)1,316 (34)3,451 3,370 6,824 106 8 6,938 1.82 
Corporate/Other278 (104)187 (13)348 160 — 508 (128) 380 
Allowance for credit losses on loans (ACLL)$12,783 $4,201 $4,336 $(479)$20,841 $5,490 $89 $26,420 $(110)$116 $26,426 4.00 %
Allowance for credit losses on unfunded lending commitments1,456 (194)557 (6)1,813 113 (67)1,859 424 16 2,299 
Other— 96 32 130 79 217 (32)(3)182 
Total allowance for credit losses (ACL)$14,239 $4,103 $4,895 $(453)$22,784 $5,682 $30 $28,496 $282 $129 $28,907 

(1)    As of September 30, 2020, in North America GCB, Citi-branded cards ACLL/EOP loans was 10.4% and Citi retail services ACLL/EOP loans was 14.2%.






9


Capital Plan Resubmission and Related Limitations on Capital Distributions
In June 2020, the Federal Reserve Board (FRB) determined that changes in financial markets and macroeconomic outlooks related to the COVID-19 pandemic could have a material effect on the risk profile and financial condition of each firm subject to its capital plan rule, and therefore require updated capital plans. Citigroup resubmitted its capital plan on November 2, 2020.
Through the end of the fourth quarter of 2020, share repurchases continue to be prohibited and dividends continue to be capped and tied to a formula based on recent income. These limitations on capital distributions may be extended by the FRB.
Citi declared common dividends of $0.51 per share for the fourth quarter of 2020 on October 22, 2020, which was not impacted by the FRB’s temporary limitations on capital distributions. For additional information about the capital plan resubmission and related limitations on capital distributions, see “Capital Resources” below.

Certain Key Government Actions in Support of the Economy

U.S. Government-Sponsored Liquidity Programs
During the first quarter of 2020, the FRB introduced several liquidity facilities in response to the funding market volatility caused by the pandemic. Citi has participated in several of the U.S. government-sponsored liquidity programs, including the Money Market Mutual Fund Liquidity Facility (MMLF), the Primary Dealer Credit Facility (PDCF) and Discount Window (DW) in order to facilitate client activity and support the FRB actions to provide additional liquidity into the market. Citi has also participated in the Paycheck Protection Program Lending Facility (PPPLF), which was established to facilitate lending under the SBA’s Paycheck Protection Program (see “Small Business Administration’s Paycheck Protection Program” below). The amounts Citi sourced from these facilities were not significant to Citi’s overall liquidity profile during the third quarter, which remains strong and highly liquid. For additional information about Citi’s liquidity resources, see “Managing Global Risk—Liquidity Risk” below.

U.S. Banking Agencies Regulatory Capital Relief
In response to the pandemic, throughout 2020, the U.S. banking agencies issued several final rules and interim final rules revising the current regulatory capital standards, to provide banking organizations with additional flexibility to support consumers and businesses. Those rules applicable to Citi include:

Easing of capital distribution limits in the event of regulatory capital buffer breaches, which provides some flexibility to continue distributing capital under certain circumstances.
Modification of the CECL transition provision to defer the January 1, 2020 capital impact to January 1, 2022 and to provide additional capital relief for ongoing increases in credit reserves. Citi’s reported Common Equity Tier 1 Capital ratio at September 30, 2020, reflecting the
modified CECL transition provision, was 43 basis points higher than Citi’s Common Equity Tier 1 Capital ratio, reflecting the full impact of CECL on regulatory capital.
Temporary Supplementary Leverage ratio (SLR) relief for bank holding companies, commencing in the second quarter of 2020, allowing Citigroup to temporarily expand its balance sheet by excluding U.S. Treasury securities and deposits with the FRB from the SLR denominator. Citigroup’s reported Supplementary Leverage ratio of 6.83% benefited 103 basis points during the third quarter of 2020 as a result of the temporary relief. Excluding the temporary relief, Citigroup’s Supplementary Leverage ratio would have been 5.80%, compared with a 5.0% effective minimum requirement.
Assigning a 0% risk weight to loans originated under the Paycheck Protection Program.

For additional information about regulatory capital relief provided by the U.S. banking agencies, see “Capital Resources” below.

Troubled Debt Restructuring (TDR) Relief
Under U.S. GAAP, banks are required to assess modifications to a loan’s terms for potential classification as a TDR. A loan to a borrower experiencing financial difficulty is classified as a TDR when a lender grants a concession that it would otherwise not consider, such as a payment deferral or interest concession. In order to encourage banks to work with impacted borrowers, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and U.S. banking agencies have provided relief from TDR accounting. The main benefits of TDR relief include a capital benefit in the form of reduced risk-weighted assets, as TDRs are more heavily risk-weighted for capital purposes; aging of the loans is frozen, i.e., they will continue to be reported in the same delinquency bucket they were in at the time of modification; and the loans are generally not reported as non-accrual during the modification period. The loans included in Citi’s pandemic consumer relief programs are included in Citi’s reserving process under the CECL standard.

Small Business Administration’s Paycheck Protection Program
The Paycheck Protection Program (the Program) authorizes the origination of forgivable loans to small businesses to pay their employees during the pandemic. Loan terms are the same for all businesses. Among other programs, Citi is participating in the Paycheck Protection Program and has funded over 30,000 loans totaling $3.8 billion as of September 30, 2020, with approximately $3.7 outstanding at September 30, 2020. Citi remains committed to supporting small businesses. The processing of loan forgiveness requests under the Program began during the third quarter of 2020 and the timing for processing will determine whether there is significant forgiveness in the fourth quarter of 2020.




10


RISK FACTORS

Macroeconomic and Other Challenges and Uncertainties Related to the COVID-19 Pandemic Will Likely Continue to Have Negative Impacts on Citi’s Businesses and Results of Operations and Financial Condition.
The COVID-19 pandemic has become global, affecting all of the countries and jurisdictions where Citi operates. The pandemic and responses to it have had, and will likely continue to have, a severe impact on global economic conditions, although the impacts will likely vary from time to time by region, country or state, largely depending on the duration and severity of the public health consequences, including availability of any effective therapeutic or vaccine and public response. These impacts to global economic conditions include, among others:

sharply reduced U.S. and global economic output, resulting in significant losses of employment and lower consumer spending, cards purchase sales and loan volumes;
lower interest rates;
disruption of global supply chains;
significant disruption and volatility in financial markets;
closures, reduced activity and failures of many businesses, leading to loss of revenues and net losses; and
the institution of social distancing and restrictions on movement in and among the United States and other countries.

The pandemic has had, and will likely continue to have, negative impacts on Citi’s businesses, revenues, expenses, credit costs and overall results of operations and financial condition, which could be material. The extent of the impact on Citi’s financial performance and operations, including its ability to execute its business initiatives and strategies, will continue to depend on future developments in the U.S. and globally, which are uncertain and cannot be predicted, including the duration and further spread of the disease, as well as the severity of the economic downturn or any delay or weakness in the economic recovery. The impact will in part be dependent on government and other actions taken to lessen the health and economic repercussions, such as additional fiscal stimulus and/or monetary policy actions, medical investments and advances, restrictions on movement of people, transportation and businesses, and the effectiveness of past and any future fiscal, monetary and other governmental actions.
Ongoing legislative and regulatory changes in the U.S. and globally to address the economic impact from the pandemic, such as consumer and corporate relief measures and continued lower interest rates, could further affect Citi’s businesses, credit costs and results. Citi could also face challenges, including legal and reputational, and scrutiny in its implementation of and ongoing efforts to provide these relief measures. Such implementations and efforts have resulted in, and may continue to result in, litigation, including class actions, and regulatory and government actions and proceedings. Such actions may result in judgments, settlements, penalties and fines adverse to Citi. In addition, the
different types of government actions could vary in scale and duration across jurisdictions and regions with varying degrees of effectiveness.
The impact of the pandemic on Citi’s consumer and corporate borrowers will also vary by region, sector or industry, with some borrowers experiencing greater stress levels, which could lead to increased pressure on their results of operations and financial condition, increased borrowings or credit ratings downgrades, thus likely leading to higher credit costs for Citi. In addition, stress levels ultimately experienced by Citi’s borrowers may be different from and more intense than assumptions made in earlier estimates or models used by Citi, resulting in a further increase in Citi’s allowance for credit losses or net credit losses.
The pandemic may not be contained for an extended period of time, due to a further emergence or reemergence of widespread infections. A prolonged health crisis could continue to reduce economic activity in the U.S. and other countries, resulting in additional declines in employment and business and consumer confidence and a prolonged period of lower interest rates. These factors could further negatively impact global economic activity and markets and Citi’s consumer customers and corporate clients; cause a continued decline in Citi’s revenues and the demand for its products and services; and further increase Citi’s credit and other costs. These factors could also cause a continued increase in Citi’s balance sheet, risk-weighted assets and allowance for credit loss reserves, resulting in a decline in regulatory capital ratios or liquidity measures, as well as regulatory demands for higher capital levels and/or limitations or reductions in capital distributions (such as common share repurchases and dividends). Moreover, any disruption or failure of Citi’s performance of, or its ability to perform, key business functions, as a result of the continued spread of COVID-19 or otherwise, could adversely affect Citi’s operations.
Any disruption to, breaches of or attacks on Citi’s information technology systems, including from cyber incidents, could have adverse effects on Citi’s businesses. These systems are supporting a substantial portion of Citi’s employees who have been affected by local pandemic restrictions and have been forced to work remotely. In addition, these systems interface with and depend on third-party systems, and Citi could experience service denials or disruptions if demand for such systems were to exceed capacity or if a third-party system fails or experiences any interruptions. Citi has also taken measures to maintain the health and safety of its employees; however, these measures could result in increased expenses, and widespread illness could negatively affect staffing within certain functions, businesses or geographies. In addition, Citi’s ability to recruit, hire and onboard employees in key areas could be negatively impacted by global pandemic restrictions.
Further, it is unclear how the macroeconomic business environment or societal norms may be impacted after the pandemic. The post-pandemic environment may undergo unexpected developments or changes in financial markets, the fiscal, monetary, tax and regulatory environments and consumer customer and corporate client behavior. These developments and changes could have an adverse impact on Citi’s results of operations and financial condition. Ongoing
11


business and regulatory uncertainties and changes may make Citi’s longer term business, balance sheet and budget planning more difficult or costly. Citi, its management and its businesses may also experience increased or different competitive and other challenges in this environment. To the extent that it is not able to adapt or compete effectively, Citi could experience loss of business and its results of operations and financial condition could suffer.
For additional information about trends, uncertainties and risks related to the pandemic, as well as Citi’s management of pandemic-related risks, see “COVID-19 Pandemic Overview” above.
For information about the other most significant risks and uncertainties that could impact Citi’s businesses, results of operations and financial condition, which could be exacerbated or realized by the pandemic-related risks discussed above, see “Risk Factors” in Citi’s 2019 Annual Report on Form 10-K.


















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13


RESULTS OF OPERATIONS
SUMMARY OF SELECTED FINANCIAL DATA—PAGE 1
Citigroup Inc. and Consolidated Subsidiaries
Third QuarterNine Months
In millions of dollars, except per share amounts20202019% Change20202019% Change
Net interest revenue$10,493 $11,641 (10)%$33,065 $35,350 (6)%
Non-interest revenue6,809 6,933 (2)24,734 20,558 20 
Revenues, net of interest expense$17,302 $18,574 (7)%$57,799 $55,908 3 %
Operating expenses10,964 10,464 5 31,973 31,548 1 
Provisions for credit losses and for benefits and claims2,262 2,088 8 17,192 6,161 NM
Income from continuing operations before income taxes$4,076 $6,022 (32)%$8,634 $18,199 (53)%
Income taxes815 1,079 (24)1,522 3,727 (59)
Income from continuing operations$3,261 $4,943 (34)%$7,112 $14,472 (51)%
Income (loss) from discontinued operations, net of taxes(7)(15)53 (26)—  
Net income before attribution of noncontrolling interests$3,254 $4,928 (34)%$7,086 $14,472 (51)%
Net income attributable to noncontrolling interests24 15 60 18 50 (64)
Citigroup’s net income$3,230 $4,913 (34)%$7,068 $14,422 (51)%
Earnings per share 
Basic 
Income from continuing operations$1.41 $2.09 (33)%$2.98 $5.92 (50)%
Net income1.41 2.09 (33)2.97 5.92 (50)
Diluted
Income from continuing operations$1.40 $2.08 (33)%$2.97 $5.89 (50)%
Net income1.40 2.07 (32)2.96 5.89 (50)
Dividends declared per common share0.51 0.51  1.53 1.41 9 
Common dividends$1,074 $1,183 (9)%$3,226 $3,299 (2)%
Preferred dividends(1)
284 254 12 828 812 2 
Common share repurchases 5,120 (100)2,925 12,750 (77)

Table continues on the next page, including footnotes.
14


SUMMARY OF SELECTED FINANCIAL DATA—PAGE 2
Citigroup Inc. and Consolidated Subsidiaries
In millions of dollars, except per share amounts, ratios and
direct staff
Third QuarterNine Months
20202019% Change20202019% Change
At September 30:
Total assets$2,234,459 $2,014,802 11 %
Total deposits1,262,623 1,087,769 16 
Long-term debt273,254 242,238 13 
Citigroup common stockholders’ equity175,896 176,893 (1)
Total Citigroup stockholders’ equity193,876 196,373 (1)
Average assets2,259,416 2,000,082 13 2,201,915 $1,972,873 12 %
Direct staff (in thousands)
209 199 5 %
Performance metrics
Return on average assets0.57 %0.97 %0.43 %0.98 %
Return on average common stockholders’ equity(2)
6.7 10.4 4.8 10.2 
Return on average total stockholders’ equity(2)
6.7 9.9 4.9 9.8 
Return on tangible common equity (RoTCE)(3)
7.9 12.2 5.6 12.0 
Efficiency ratio (total operating expenses/total revenues)63.4 56.3 55.3 56.4 
Basel III ratios
Common Equity Tier 1 Capital(4)
11.75 %11.58 %
Tier 1 Capital(4)
13.25 13.20 
Total Capital(4)
15.66 16.07 
Supplementary Leverage ratio6.83 6.27 
Citigroup common stockholders’ equity to assets7.87 %8.78 %
Total Citigroup stockholders’ equity to assets8.68 9.75 
Dividend payout ratio(5)
36 25 52 %24 %
Total payout ratio(6)
36 135 99 118 
Book value per common share$84.48 $81.02 4 %
Tangible book value (TBV) per share(3)
71.95 69.03 4 
(1)    Certain series of preferred stock have semi-annual payment dates. See Note 9 to the Consolidated Financial Statements.
(2)    The return on average common stockholders’ equity is calculated using net income less preferred stock dividends divided by average common stockholders’ equity. The return on average total Citigroup stockholders’ equity is calculated using net income divided by average Citigroup stockholders’ equity.
(3)    For information on RoTCE and TBV, see “Capital Resources—Tangible Common Equity, Book Value Per Share, Tangible Book Value Per Share and Returns on Equity” below. RoTCE and TBV are non-GAAP financial measures.
(4)    Citi’s reportable Common Equity Tier 1 Capital and Tier 1 Capital ratios were derived under the Basel III Advanced Approaches framework as of September 30, 2020 and the Basel III Standardized Approach as of September 30, 2019, whereas Citi’s reportable Total Capital ratio was the lower derived under the Basel III Advanced Approaches framework for all periods presented. This reflects the U.S. Basel III requirement to report the lower of risk-based capital ratios under both the Standardized Approach and Advanced Approaches in accordance with the Collins Amendment of the Dodd-Frank Act.
(5)    Dividend payout ratio is calculated as dividends declared per common share as a percentage of net income per diluted share.
(6)    Total payout ratio is calculated as total common dividends declared plus common stock 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 to the Consolidated Financial Statements and “Equity Security Repurchases” below for the component details.
NM Not meaningful



15


SEGMENT AND BUSINESS—INCOME (LOSS) AND REVENUES
CITIGROUP INCOME
Third QuarterNine Months
In millions of dollars20202019% Change20202019% Change
Income (loss) from continuing operations
Global Consumer Banking
  North America$693 $884 (22)%$(676)$2,254 NM
  Latin America152 217 (30)134 667 (80)%
  Asia(1)
213 402 (47)447 1,203 (63)
Total$1,058 $1,503 (30)%$(95)$4,124 NM
Institutional Clients Group
  North America$1,058 $818 29 %$2,614 $2,616  %
  EMEA893 1,060 (16)2,421 3,190 (24)
  Latin America108 487 (78)440 1,546 (72)
  Asia860 864  2,950 2,714 9 
Total$2,919 $3,229 (10)%$8,425 $10,066 (16)%
Corporate/Other(716)211 NM(1,218)282 NM
Income from continuing operations$3,261 $4,943 (34)%$7,112 $14,472 (51)%
Discontinued operations$(7)$(15)53 %$(26)$—  %
Less: Net income attributable to noncontrolling interests24 15 60 18 50 (64)
Citigroup’s net income$3,230 $4,913 (34)%$7,068 $14,422 (51)%

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


CITIGROUP REVENUES
Third QuarterNine Months
In millions of dollars20202019% Change20202019% Change
Global Consumer Banking
  North America$4,527 $5,179 (13)%$14,493 $15,145 (4)%
  Latin America1,027 1,269 (19)3,276 3,861 (15)
  Asia(1)
1,619 1,841 (12)4,917 5,506 (11)
Total$7,173 $8,289 (13)%$22,686 $24,512 (7)%
Institutional Clients Group
  North America$3,920 $3,244 21 %$13,854 $10,145 37 %
  EMEA3,085 3,138 (2)9,947 9,268 7 
  Latin America1,141 1,294 (12)3,766 3,869 (3)
  Asia2,207 2,175 1 7,407 6,642 12 
Total$10,353 $9,851 5 %$34,974 $29,924 17 %
Corporate/Other(224)434 NM139 1,472 (91)
Total Citigroup net revenues$17,302 $18,574 (7)%$57,799 $55,908 3 %
(1)    Asia GCB includes the results of operations of GCB activities in certain EMEA countries for all periods presented.
NM Not meaningful



16


SEGMENT BALANCE SHEET(1)—SEPTEMBER 30, 2020
In millions of dollarsGlobal
Consumer
Banking
Institutional
Clients
Group
Corporate/Other
and
consolidating
eliminations(2)
Citigroup
parent company-
issued long-term
debt and
stockholders’
equity(3)
Total
Citigroup
consolidated
Assets    
Cash and deposits with banks, net of allowance$6,156 $75,001 $242,538 $ $323,695 
Securities borrowed and purchased under agreements to resell, net of allowance174 288,866 318  289,358 
Trading account assets2,154 332,604 13,451  348,209 
Investments, net of allowance1,080 132,260 314,184  447,524 
Loans, net of unearned income and allowance
for credit losses on loans
253,212 379,936 7,337  640,485 
Other assets, net of allowance37,895 105,138 42,155  185,188 
Net inter-segment liquid assets(4)
134,675 388,941 (523,616)  
Total assets$435,346 $1,702,746 $96,367 $ $2,234,459 
Liabilities and equity   
Total deposits$325,539 $924,770 $12,314 $ $1,262,623 
Securities loaned and sold under agreements
to repurchase
692 206,488 47  207,227 
Trading account liabilities1,452 144,942 596  146,990 
Short-term borrowings99 27,586 9,754  37,439 
Long-term debt(3)
1,246 71,762 31,534 168,712 273,254 
Other liabilities, net of allowance19,239 76,272 16,820  112,331 
Net inter-segment funding (lending)(3)
87,079 250,926 24,583 (362,588) 
Total liabilities$435,346 $1,702,746 $95,648 $(193,876)$2,039,864 
Total stockholders’ equity(5)
  719 193,876 194,595 
Total liabilities and equity$435,346 $1,702,746 $96,367 $ $2,234,459 

(1)The supplemental information presented in the table above reflects Citigroup’s consolidated GAAP balance sheet by reporting segment as of September 30, 2020. The respective segment information depicts the assets and liabilities managed by each segment as of such date.
(2)Consolidating eliminations for total Citigroup and Citigroup parent company assets and liabilities are recorded within Corporate/Other.
(3)The total stockholders’ equity and the majority of long-term debt of Citigroup are reflected on the Citigroup parent company balance sheet. Citigroup allocates stockholders’ equity and long-term debt to its businesses through inter-segment allocations as shown above.
(4)Represents the attribution of Citigroup’s liquid assets (primarily consisting of cash, marketable equity securities and available-for-sale debt securities) to the various businesses based on Liquidity Coverage ratio (LCR) assumptions.
(5)Corporate/Other equity represents noncontrolling interests.






17


GLOBAL CONSUMER BANKING
Global Consumer Banking (GCB) consists of consumer banking businesses in North America, Latin America (consisting of Citi’s consumer banking business in Mexico) and Asia. GCB provides traditional banking services to retail customers through retail banking, Citi-branded cards and, in the U.S., Citi retail services (for additional information on these businesses, see “Citigroup Segments” above). GCB is focused on its priority markets in the U.S., Mexico and Asia, with 2,321 branches in 19 countries and jurisdictions as of September 30, 2020. At September 30, 2020, GCB had $435 billion in assets and $326 billion in retail banking deposits.
GCB’s overall strategy is to leverage Citi’s global footprint and be the pre-eminent bank for the affluent and emerging affluent consumers in large urban centers. In credit cards and in certain retail markets, Citi serves customers in a somewhat broader set of segments and geographies.
Third QuarterNine Months
In millions of dollars, except as otherwise noted20202019% Change20202019% Change
Net interest revenue$6,251 $7,127 (12)%$19,857 $21,024 (6)%
Non-interest revenue922 1,162 (21)2,829 3,488 (19)
Total revenues, net of interest expense$7,173 $8,289 (13)%$22,686 $24,512 (7)%
Total operating expenses$4,217 $4,368 (3)%$12,598 $13,255 (5)%
Net credit losses on loans$1,598 $1,802 (11)%$5,468 $5,540 (1)%
Credit reserve build (release) for loans(88)129 NM4,701 319 NM
Provision (release) for credit losses on unfunded lending commitments5 NM4 (1)NM
Provisions for benefits and claims, HTM debt securities and other assets45 17 NM103 48 NM
Provisions for credit losses and for benefits and claims (PBC)$1,560 $1,950 (20)%$10,276 $5,906 74 %
Income (loss) from continuing operations before taxes$1,396 $1,971 (29)%$(188)$5,351 NM
Income taxes (benefits)338 468 (28)(93)1,227 NM
Income (loss) from continuing operations$1,058 $1,503 (30)%$(95)$4,124 NM
Noncontrolling interests NM(3)NM
Net income (loss)$1,058 $1,501 (30)%$(92)$4,121 NM
Balance Sheet data and ratios (in billions of dollars)
EOP assets$435 $394 10 %
Average assets434 392 11 $419 $385 9 %
Return on average assets0.97 %1.52 %(0.03)%1.43 %
Efficiency ratio59 53 56 54 
Average retail banking deposits$320 $277 16 $304 $275 11 
Net credit losses as a percentage of average loans2.33 %2.52 %2.63 %2.63 %
Revenue by business
Retail banking$2,916 $3,117 (6)%$8,798 $9,425 (7)%
Cards(1)
4,257 5,172 (18)13,888 15,087 (8)
Total$7,173 $8,289 (13)%$22,686 $24,512 (7)%
Income (loss) from continuing operations by business
Retail banking$346 $492 (30)%$537 $1,418 (62)%
Cards(1)
712 1,011 (30)(632)2,706 NM
Total$1,058 $1,503 (30)%$(95)$4,124 NM
Table continues on the next page, including footnotes.
18


Foreign currency (FX) translation impact
Total revenue—as reported$7,173 $8,289 (13)%$22,686 $24,512 (7)%
Impact of FX translation(2)
 (113) (456)
Total revenues—ex-FX(3)
$7,173 $8,176 (12)%$22,686 $24,056 (6)%
Total operating expenses—as reported$4,217 $4,368 (3)%$12,598 $13,255 (5)%
Impact of FX translation(2)
 (62) (248)
Total operating expenses—ex-FX(3)
$4,217 $4,306 (2)%$12,598 $13,007 (3)%
Total provisions for credit losses and PBC—as reported$1,560 $1,950 (20)%$10,276 $5,906 74 %
Impact of FX translation(2)
 (28) (111)
Total provisions for credit losses and PBC—ex-FX(3)
$1,560 $1,922 (19)%$10,276 $5,795 77 %
Net income—as reported$1,058 $1,501 (30)%$(92)$4,121 NM
Impact of FX translation(2)
 (15) (64)
Net income—ex-FX(3)
$1,058 $1,486 (29)%$(92)$4,057 NM
(1)Includes both Citi-branded cards and Citi retail services.
(2)Reflects the impact of FX translation into U.S. dollars at the third quarter of 2020 and year-to-date 2020 average exchange rates for all periods presented.
(3)Presentation of this metric excluding FX translation is a non-GAAP financial measure.
Note: For information on the impact of Citi’s January 1, 2020 adoption of the new accounting standard on credit losses (CECL), see Note 1 to the Consolidated Financial Statements.
NM Not meaningful



19


NORTH AMERICA GCB
North America GCB provides traditional retail banking and Citi-branded and Citi retail services card products to retail and small business customers in the U.S. North America GCB’s U.S. cards product portfolio includes its proprietary portfolio (including the Citi Double Cash, Thank You and Value cards) and co-branded cards (including, among others, American Airlines and Costco) within Citi-branded cards, as well as its co-brand and private label relationships (including, among others, Sears, The Home Depot, Best Buy and Macy’s) within Citi retail services.
At September 30, 2020, North America GCB had 687 retail bank branches concentrated in the six key metropolitan areas of New York, Chicago, Miami, Washington, D.C., Los Angeles and San Francisco. Also as of September 30, 2020, North America GCB had $53.1 billion in retail banking loans and $186.0 billion in retail banking deposits. In addition, North America GCB had $125.5 billion in outstanding card loan balances.
Third QuarterNine Months
In millions of dollars, except as otherwise noted20202019% Change20202019% Change
Net interest revenue$4,500 $5,041 (11)%$14,243 $14,807 (4)%
Non-interest revenue27 138 (80)250 338 (26)
Total revenues, net of interest expense$4,527 $5,179 (13)%$14,493 $15,145 (4)%
Total operating expenses$2,444 $2,511 (3)%$7,326 $7,704 (5)%
Net credit losses on loans$1,182 $1,350 (12)%$4,192 $4,175  %
Credit reserve build (release) for loans(13)161 NM3,848 360 NM
Provision (release) for credit losses on unfunded lending commitments5 NM4 (1)NM
Provisions (release) for benefits and claims, HTM debt securities and other assets(6)NM18 16 13 
Provisions for credit losses and for benefits and claims$1,168 $1,517 (23)%$8,062 $4,550 77 %
Income (loss) from continuing operations before taxes$915 $1,151 (21)%$(895)$2,891 NM
Income taxes (benefits)222 267 (17)(219)637 NM
Income (loss) from continuing operations$693 $884 (22)%$(676)$2,254 NM
Noncontrolling interests —   —  %
Net income (loss)$693 $884 (22)%$(676)$2,254 NM
Balance Sheet data and ratios (in billions of dollars)
  
Average assets$274 $235 17 %$261 $230 13 %
Return on average assets1.01 %1.49 %(0.35)%1.31 %
Efficiency ratio54 48 51 51 
Average retail banking deposits$182 $154 18 $172 $152 13 
Net credit losses as a percentage of average loans2.63 %2.84 %3.03 %2.99 %
Revenue by business  
Retail banking$1,113 $1,131 (2)%$3,365 $3,421 (2)%
Citi-branded cards2,061 2,334 (12)6,626 6,726 (1)
Citi retail services1,353 1,714 (21)4,502 4,998 (10)
Total$4,527 $5,179 (13)%$14,493 $15,145 (4)%
Income (loss) from continuing operations by business  
Retail banking$50 $67 (25)%$(105)$144 NM
Citi-branded cards427 441 (3)(483)1,187 NM
Citi retail services216 376 (43)(88)923 NM
Total$693 $884 (22)%$(676)$2,254 NM

NM Not meaningful
20


3Q20 vs. 3Q19
Net income decreased 22%, as lower cost of credit and lower expenses were more than offset by lower revenues.
Revenues decreased 13%, reflecting lower revenues in Citi retail services, Citi-branded cards and retail banking, primarily reflecting the continued impact of the COVID-19 pandemic.
Retail banking revenues decreased 2%, as the benefit of stronger deposit volumes and an improvement in mortgage revenues were more than offset by lower deposit spreads, reflecting lower interest rates. Average deposits increased 19%, driven by a combination of factors, including government stimulus payments and a reduction in overall consumer spending related to the pandemic, as well as continued strategic efforts to drive organic growth.
Cards revenues decreased 16%. Citi-branded cards revenues decreased 12%, reflecting lower purchase sales and higher payment rates driving lower average loans. Average loans decreased 10% and purchase sales decreased 9%, reflecting the continued impact of the pandemic on customer activity.
Citi retail services revenues decreased 21%, primarily reflecting lower average loans and higher contractual partner payments. (For additional information on partner payments, see Note 5 to the Consolidated Financial Statements). Average loans were down 10% and purchase sales declined 8%, reflecting the continued impact of the pandemic on customer activity.
Expenses decreased 3%, as lower volume-related expenses, reductions in marketing and other discretionary expenses, as well as efficiency savings, more than offset higher pandemic-related expenses.
Provisions of $1.2 billion decreased 23% from the prior-year period, driven by lower net credit losses, as well as a modest reserve release. Net credit losses decreased 12%, primarily driven by lower net credit losses in Citi retail services (down 16% to $504 million) and Citi-branded cards (down 9% to $647 million), primarily reflecting lower loan volumes as well as higher payment rates given high levels of liquidity, lower spending and the benefits of relief programs. The ACL net release in the third quarter was $8 million, primarily reflecting lower loan volumes (compared to a build of $163 million in the prior-year period under prior accounting standards).
For additional information on North America GCB’s retail banking, and its Citi-branded cards and Citi retail services portfolios, see “Credit Risk—Consumer Credit” below.
For additional information on Citi’s ACL, see “Significant Accounting Policies and Significant Estimates” below, and Notes 1 and 14 to the Consolidated Financial Statements.
For additional information about trends, uncertainties and risks related to the pandemic, see “COVID-19 Pandemic Overview” and “Risk Factors” above.


2020 YTD vs. 2019 YTD
Year-to-date, North America GCB experienced similar trends to those described above. Net loss was $676 million, compared to net income of $2.3 billion in the prior-year period, as significantly higher cost of credit and lower revenues were partially offset by lower expenses.
Revenues decreased 4%, reflecting lower revenues in Citi retail services, Citi-branded cards and retail banking. Retail banking revenues decreased 2%, driven by the same factors described above. Cards revenues decreased 5%. In Citi-branded cards, revenues decreased 1%, driven by the same factors described above. Citi retail services revenues decreased 10%, driven by the same factors described above.
Expenses decreased 5%, driven by the same factors described above.
Provisions of $8.1 billion increased 77% from the prior-year period, driven by a higher ACL build. Net credit losses were largely unchanged. The ACL build was $3.9 billion, primarily reflecting the impact of deterioration in Citi’s macroeconomic outlook in each of the first and second quarters of 2020, primarily driven by the pandemic, on estimated lifetime credit losses under CECL (compared to a build of $359 million in the prior-year period under prior accounting standards), partially offset by the impact of a change in estimate effected by a change in accounting principle for third-party collection costs (see “Significant Accounting Policies and Significant Estimates” below).






21


LATIN AMERICA GCB
Latin America GCB provides traditional retail banking and Citi-branded card products to retail and small business customers in Mexico through Citibanamex, one of Mexico’s largest banks.
At September 30, 2020, Latin America GCB had 1,401 retail branches in Mexico, with $9.2 billion in retail banking loans and $22.2 billion in deposits. In addition, the business had $4.3 billion in outstanding card loan balances.
Third QuarterNine Months% Change
In millions of dollars, except as otherwise noted20202019% Change20202019
Net interest revenue$697 $913 (24)%$2,339 $2,708 (14)%
Non-interest revenue330 356 (7)937 1,153 (19)
Total revenues, net of interest expense$1,027 $1,269 (19)%$3,276 $3,861 (15)%
Total operating expenses$655 $724 (10)%$1,958 $2,101 (7)%
Net credit losses on loans$228 $275 (17)%$714 $850 (16)%
Credit reserve build (release) for loans(116)(34)NM351 (33)NM
Provision for credit losses on unfunded lending commitments —   —  
Provisions for benefits and claims, HTM debt securities and other assets47 13 NM78 32 NM
Provisions for credit losses and for benefits and claims (PBC)$159 $254 (37)%$1,143 $849 35 %
Income from continuing operations before taxes$213 $291 (27)%$175 $911 (81)%
Income taxes61 74 (18)41 244 (83)
Income from continuing operations$152 $217 (30)%$134 $667 (80)%
Net income$152 $217 (30)%$134 $667 (80)%
Balance Sheet data and ratios (in billions of dollars)
  
Average assets$31 $35 (11)%$32 $34 (6)%
Return on average assets1.95 %2.46 %0.56 %2.62 %
Efficiency ratio64 57 60 54 
Average deposits$23 $23  $22 $23 (4)
Net credit losses as a percentage of average loans6.67 %6.42 %6.58 %6.65 %
Revenue by business
Retail banking$737 $851 (13)%$2,225 $2,653 (16)%
Citi-branded cards290 418 (31)1,051 1,208 (13)
Total$1,027 $1,269 (19)%$3,276 $3,861 (15)%
Income (loss) from continuing operations by business  
Retail banking$92 $134 (31)%$67 $459 (85)%
Citi-branded cards60 83 (28)67 208 (68)
Total$152 $217 (30)%$134 $667 (80)%
FX translation impact 
Total revenues—as reported$1,027 $1,269 (19)%$3,276 $3,861 (15)%
Impact of FX translation(1)
 (128) (394)
Total revenues—ex-FX(2)
$1,027 $1,141 (10)%$3,276 $3,467 (6)%
Total operating expenses—as reported$655 $724 (10)%$1,958 $2,101 (7)%
Impact of FX translation(1)
 (70) (202)
Total operating expenses—ex-FX(2)
$655 $654  %$1,958 $1,899 3 %
Provisions for credit losses and PBC—as reported$159 $254 (37)%$1,143 $849 35 %
Impact of FX translation(1)
 (29) (99)
Provisions for credit losses and PBC—ex-FX(2)
$159 $225 (29)%$1,143 $750 52 %
Net income (loss)—as reported$152 $217 (30)%$134 $667 (80)%
Impact of FX translation(1)
 (20) (64)
Net income (loss)—ex-FX(2)
$152 $197 (23)%$134 $603 (78)%
(1)Reflects the impact of FX translation into U.S. dollars at the third quarter of 2020 and year-to-date 2020 average exchange rates for all periods presented.
(2)Presentation of this metric excluding FX translation is a non-GAAP financial measure.
NM Not meaningful
22


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

3Q20 vs. 3Q19
Net income decreased 23%, reflecting lower revenues, partially offset by lower cost of credit, while expenses were largely unchanged.
Revenues decreased 10%, reflecting lower retail banking and cards revenues, largely reflecting the continued impact of the pandemic and the ongoing slowdown in overall economic growth and industry volumes in Mexico.
Retail banking revenues decreased 4%, driven by a decline in loan volumes and lower deposit spreads, partially offset by deposit growth. Average deposits were up 13%, while average loans decreased 7%, reflecting the impact of the pandemic on customer activity, as well as the ongoing economic slowdown.
Cards revenues decreased 23%, primarily driven by lower purchase sales (down 21%) and lower average loans (down 12%), reflecting the impact of the pandemic on customer activity and the ongoing economic slowdown.
Expenses were largely unchanged, as efficiency savings were offset by ongoing investment spending and episodic items.
Provisions of $159 million decreased 29%, reflecting a higher allowance for credit loss (ACL) release and lower net credit losses. Net credit losses decreased 7%, primarily driven by lower average loans. The ACL release in the third quarter was $116 million, primarily reflecting lower loan volumes, as well as the impact of a change in estimate effected by a change in accounting principle for third-party collection costs (compared to a release of $30 million in the prior-year period under prior accounting standards). See “Significant Accounting Policies and Significant Estimates” below.
For additional information on Latin America GCB’s retail banking and its Citi-branded cards portfolios, see “Credit Risk—Consumer Credit” below.
For additional information on Citi’s ACL, see “Significant Accounting Policies and Significant Estimates” below, and Notes 1 and 14 to the Consolidated Financial Statements.
For additional information about trends, uncertainties and risks related to the pandemic, see “COVID-19 Pandemic Overview” and “Risk Factors” above.







2020 YTD vs. 2019 YTD
Net income decreased 78%, reflecting significantly higher cost of credit, lower revenues and higher expenses.
Revenues decreased 6%. Excluding the impact of a residual gain (approximately $30 million) in the prior-year period on the sale of an asset management business, revenues decreased 5%, reflecting lower revenues in both retail banking and cards. Retail banking revenues decreased 5% (excluding the gain on sale in the prior-year period), driven by the same factors described above. Cards revenues decreased 3%, driven by the same factors described above.
Expenses increased 3%, as ongoing investment spending and episodic items were partially offset by efficiency savings.
Provisions of $1.1 billion increased 52%, driven by a higher ACL build, partially offset by lower net credit losses. Net credit losses decreased 6%, primarily driven by the same factors described above. The ACL build was $351 million, primarily reflecting the impact of deterioration in Citi’s macroeconomic outlook in each of the first and second quarters of 2020, primarily driven by the pandemic, on estimated lifetime credit losses under CECL (compared to a release of $31 million in the prior-year period under prior accounting standards). The increase was partially offset by the impact of a change in estimate effected by a change in accounting principle for third-party collection costs.



23


ASIA GCB
Asia GCB provides traditional retail banking and Citi-branded card products to retail and small business customers. During the third quarter of 2020, Asia GCB’s most significant revenues in Asia were from Hong Kong, Singapore, South Korea, Taiwan, India, Australia, Thailand, Philippines, China and Indonesia. Included within Asia GCB, traditional retail banking and Citi-branded card products are also provided to retail customers in certain EMEA countries, primarily the United Arab Emirates, Poland and Russia.
At September 30, 2020, on a combined basis, the businesses had 233 retail branches, $63.5 billion in retail banking loans and $117.4 billion in deposits. In addition, the businesses had $16.8 billion in outstanding card loan balances.
Third QuarterNine Months% Change
In millions of dollars, except as otherwise noted(1)
20202019% Change20202019
Net interest revenue$1,054 $1,173 (10)%$3,275 $3,509 (7)%
Non-interest revenue565 668 (15)1,642 1,997 (18)
Total revenues, net of interest expense$1,619 $1,841 (12)%$4,917 $5,506 (11)%
Total operating expenses$1,118 $1,133 (1)%$3,314 $3,450 (4)%
Net credit losses on loans$188 $177 6 %$562 $515 9 %
Credit reserve build (release) for loans41 NM502 (8)NM
Provisions for HTM debt securities and other assets4 —  7 —  
Provisions for credit losses$233 $179 30 %$1,071 $507 NM
Income from continuing operations before taxes$268 $529 (49)%$532 $1,549 (66)%
Income taxes55 127 (57)85 346 (75)
Income from continuing operations$213 $402 (47)%$447 $1,203 (63)%
Noncontrolling interests (100)(3)NM
Net income$213 $400 (47)%$450 $1,200 (63)%
Balance Sheet data and ratios (in billions of dollars)
  
Average assets$129 $122 6 %$126 $121 4 %
Return on average assets0.66 %1.30 %0.48 %1.33 %
Efficiency ratio69 62 67 63 
Average deposits$115 $101 14 $110 $100 10 
Net credit losses as a percentage of average loans0.94 %0.90 %0.95 %0.88 %
Revenue by business
Retail banking$1,066 $1,135 (6)%$3,208 $3,351 (4)%
Citi-branded cards553 706 (22)1,709 2,155 (21)
Total$1,619 $1,841 (12)%$4,917 $5,506 (11)%
Income from continuing operations by business
Retail banking$204 $291 (30)%$575 $815 (29)%
Citi-branded cards9 111 (92)(128)388 NM
Total$213 $402 (47)%$447 $1,203 (63)%
FX translation impact
Total revenues—as reported$1,619 $1,841 (12)%$4,917 $5,506 (11)%
Impact of FX translation(2)
 15  (62)
Total revenues—ex-FX(3)
$1,619 $1,856 (13)%$4,917 $5,444 (10)%
Total operating expenses—as reported$1,118 $1,133 (1)%$3,314 $3,450 (4)%
Impact of FX translation(2)
  (46)
Total operating expenses—ex-FX(3)
$1,118 $1,141 (2)%$3,314 $3,404 (3)%
Provisions for credit losses—as reported$233 $179 30 %$1,071 $507 NM
Impact of FX translation(2)
  (12)
Provisions for credit losses—ex-FX(3)
$233 $180 29 %$1,071 $495 NM
Net income—as reported$213 $400 (47)%$450 $1,200 (63)%
Impact of FX translation(2)
  — 
Net income—ex-FX(3)
$213 $405 (47)%$450 $1,200 (63)%

(1)    Asia GCB includes the results of operations of GCB activities in certain EMEA countries for all periods presented.
24


(2)    Reflects the impact of FX translation into U.S. dollars at the third quarter of 2020 and year-to-date 2020 average exchange rates for all periods presented.
(3)    Presentation of this metric excluding FX translation is a non-GAAP financial measure.

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

3Q20 vs. 3Q19
Net income decreased 47%, reflecting lower revenues and higher cost of credit, partially offset by lower expenses.
Revenues decreased 13%, reflecting lower cards and retail banking revenues, largely due to the continued impact of the pandemic.
Retail banking revenues decreased 7%, primarily driven by lower deposit spreads due to lower interest rates and lower insurance revenues, partially offset by stronger deposit volumes and higher investment revenues. Average deposits increased 13% and average loans increased 4%. Assets under management increased 1% and investment sales increased 43%. Retail lending revenues increased 3%, reflecting growth in mortgages.
Cards revenues decreased 23%, primarily driven by lower purchase sales (down 17%) and lower average loans (down 11%), reflecting the impact of the pandemic on customer activity, including from lower travel spend in the region, given Citi’s skew to an affluent client base and a greater proportion of fee revenues coming from travel-related interchange and foreign transaction fees.
Expenses decreased 2%, as lower marketing and other discretionary expenses, lower volume-related costs, as well as efficiency savings, were partially offset by ongoing investment spending.
Provisions of $233 million increased 29%, driven by a higher allowance for credit losses (ACL) build as well as higher net credit losses. Net credit losses increased 6%, as pandemic lockdowns and the deterioration in the macro-environment impacted credit performance. The ACL build in the third quarter was $41 million, reflecting an increase in the qualitative management adjustment component of the reserve to reflect the potential for a higher level of stress and/or somewhat slower economic recovery (compared to a build of $2 million in the prior-year period under prior accounting standards). The increase was partially offset by the impact of a change in estimate effected by a change in accounting principle for third-party collection costs, as well as lower card loan volumes (see “Significant Accounting Policies and Significant Estimates” below).
For additional information on Asia GCB’s retail banking portfolios and its Citi-branded cards portfolios, see “Credit Risk—Consumer Credit” below.
For additional information on Citi’s ACL, see “Significant Accounting Policies and Significant Estimates” below, and Notes 1 and 14 to the Consolidated Financial Statements.
For additional information about trends, uncertainties and risks related to the pandemic, see “COVID-19 Pandemic Overview” and “Risk Factors” above.




2020 YTD vs. 2019 YTD
Year-to-date, Asia GCB experienced similar trends to those described above. Net income decreased 63%, driven by lower revenues and higher cost of credit, partially offset by lower expenses.
Revenues decreased 10%, driven by a decline in both retail banking and cards revenues. Retail banking revenues decreased 3%, as growth in deposits and higher fees on investments and foreign currency transactions due to higher volumes and volatility were more than offset by lower deposit spreads, insurance revenues and the one-time gain in the prior-year period. Retail lending revenues increased 5%, reflecting growth in mortgages. Cards revenues decreased 20%, driven by the same factors described above, as well as a small one-time gain in the prior-year period.
Expenses decreased 3%, driven by the same factors described above.
Provisions of $1.1 billion increased $576 million from the prior-year period, driven by a higher ACL build and higher net credit losses. NCLs increased 11%, driven by the same factors described above. The ACL build was $502 million, primarily reflecting the impact of deterioration in Citi’s macroeconomic outlook in each of the first and second quarters of 2020, primarily driven by the pandemic, on estimated lifetime credit losses under CECL (compared to a release of $10 million in the prior-year period under prior accounting standards). The increase was partially offset by the impact of a change in estimate effected by a change in accounting principle for third-party collection costs.












25


INSTITUTIONAL CLIENTS GROUP
Institutional Clients Group (ICG) includes Banking and Markets and securities services (for additional information on these businesses, see “Citigroup Segments” above). ICG provides corporate, institutional, public sector and high-net-worth 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, private banking, 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 2019 Annual Report on Form 10-K.
ICG’s international presence is supported by trading floors in approximately 80 countries and a proprietary network in 97 countries and jurisdictions. At September 30, 2020, ICG had $1.7 trillion in assets and $925 billion in deposits, while two of its businesses—securities services and issuer services—managed $21.5 trillion in assets under custody compared to $20.3 trillion at December 31, 2019 and $20.4 trillion at June 30, 2020.
Third QuarterNine Months% Change
In millions of dollars, except as otherwise noted20202019% Change20202019
Commissions and fees$1,099 $1,126 (2)%$3,348 $3,359  %
Administration and other fiduciary fees747 707 6 2,122 2,099 1 
Investment banking1,145 1,045 10 3,902 3,259 20 
Principal transactions2,292 2,583 (11)11,560 7,157 62 
Other(1)
597 319 87 902 1,320 (32)
Total non-interest revenue$5,880 $5,780 2 %$21,834 $17,194 27 %
Net interest revenue (including dividends)4,473 4,071 10 13,140 12,730 3 
Total revenues, net of interest expense$10,353 $9,851 5 %$34,974 $29,924 17 %
Total operating expenses$5,778 $5,611 3 %$17,521 $16,778 4 %
Net credit losses on loans$326 $110 NM$777 $279 NM
Credit reserve build for loans106 36 NM4,792 14 NM
Provision for credit losses on unfunded lending commitments423 NM1,083 24 NM
Provisions (releases) for credit losses on HTM debt securities and other assets(17)— NM44 — NM
Provisions for credit losses$838 $153 NM$6,696 $317 NM
Income from continuing operations before taxes$3,737 $4,087 (9)%$10,757 $12,829 (16)%
Income taxes818 858 (5)2,332 2,763 (16)
Income from continuing operations$2,919 $3,229 (10)%$8,425 $10,066 (16)%
Noncontrolling interests24 NM28 29 (3)
Net income$2,895 $3,221 (10)%$8,397 $10,037 (16)%
Balance Sheet data and ratios (in billions of dollars)
EOP assets (in billions of dollars)
$1,703 $1,525 12 %
Average assets (in billions of dollars)
1,732 1,511 15 $1,689 $1,489 13 %
Return on average assets0.66 %0.85 %0.66 %0.90 %
Efficiency ratio56 57 50 56 
Revenues by region
North America$3,920 $3,244 21 %$13,854 $10,145 37 %
EMEA3,085 3,138 (2)9,947 9,268 7 
Latin America1,141 1,294 (12)3,766 3,869 (3)
Asia2,207 2,175 1 7,407 6,642 12 
Total$10,353 $9,851 5 %$34,974 $29,924 17 %
Income from continuing operations by region 
North America$1,058 $818 29 %$2,614 $2,616  %
EMEA893 1,060 (16)2,421 3,190 (24)
Latin America108 487 (78)440 1,546 (72)
Asia860 864  2,950 2,714 9 
Total$2,919 $3,229 (10)%$8,425 $10,066 (16)%
26


Average loans by region (in billions of dollars)
 
North America$198 $189 5 %$204 $187 9 %
EMEA88 88  89 86 3 
Latin America40 39 3 40 41 (2)
Asia71 73 (3)72 73 (1)
Total$397 $389 2 %$405 $387 5 %
EOP deposits by business (in billions of dollars)
Treasury and trade solutions$659 $548 20 %
All other ICG businesses
266 247 8 
Total$925 $795 16 %

(1)    The second quarter of 2019 includes an approximate $350 million gain on Citi’s investment in Tradeweb.
NM Not meaningful

ICG Revenue Details
Third QuarterNine Months% Change
In millions of dollars20202019% Change20202019
Investment banking revenue details
Advisory$163 $276 (41)%$778 $886 (12)%
Equity underwriting484 247 96 1,155 733 58 
Debt underwriting740 705 5 2,567 2,246 14 
Total investment banking$1,387 $1,228 13 %$4,500 $3,865 16 %
Treasury and trade solutions2,394 2,559 (6)7,124 7,685 (7)
Corporate lending—excluding gains (losses) on loan hedges(1)
538 715 (25)1,632 2,189 (25)
Private bank—excluding gains (losses) on loan hedges(1)
938 867 8 2,843 2,613 9 
Total Banking revenues (ex-gains (losses) on loan hedges)
$5,257 $5,369 (2)%$16,099 $16,352 (2)%
Gains (losses) on loan hedges(1)
$(124)$(33)NM$261 $(339)NM
Total Banking revenues (including gains (losses) on loan hedges), net of interest expense
$5,133 $5,336 (4)%$16,360 $16,013 2 %
Fixed income markets(2)
$3,788 $3,211 18 %$14,169 $9,986 42 %
Equity markets875 760 15 2,814 2,392 18 
Securities services631 664 (5)1,895 1,984 (4)
Other(74)(120)38 (264)(451)41 
Total Markets and securities services revenues, net of interest expense
$5,220 $4,515 16 %$18,614 $13,911 34 %
Total revenues, net of interest expense$10,353 $9,851 5 %$34,974 $29,924 17 %
  Commissions and fees$159 $194 (18)%$502 $566 (11)%
  Principal transactions(3)
2,178 2,080 5 9,736 6,327 54 
  Other(2)
301 183 64 472 866 (45)
  Total non-interest revenue$2,638 $2,457 7 %$10,710 $7,759 38 %
  Net interest revenue1,150 754 53 3,459 2,227 55 
Total fixed income markets(4)
$3,788 $3,211 18 %$14,169 $9,986 42 %
  Rates and currencies$2,520 $2,491 1 %$10,136 $7,011 45 %
  Spread products/other fixed income1,268 720 76 4,033 2,975 36 
Total fixed income markets$3,788 $3,211 18 %$14,169 $9,986 42 %
  Commissions and fees$279 $287 (3)%$946 $854 11 %
  Principal transactions(3)
125 388 (68)1,092 791 38 
  Other267 NM277 19 NM
  Total non-interest revenue$671 $677 (1)%$2,315 $1,664 39 %
  Net interest revenue204 83 NM499 728 (31)
Total equity markets(4)
$875 $760 15 %$2,814 $2,392 18 %
27


(1)    Credit derivatives are used to economically hedge a portion of the private bank and corporate loan portfolio that includes both accrual loans and loans at fair value. Gains (losses) on loan hedges include the mark-to-market on the credit derivatives and the mark-to-market on the loans in the portfolio that are at fair value. The fixed premium costs of these hedges are netted against the private bank and corporate lending revenues to reflect the cost of credit protection. Gains (losses) on loan hedges include $(116) million and $224 million related to the corporate loan portfolio and $(8) million and $37 million related to the private bank for the three and nine months ended September 30, 2020, respectively. All of gains (losses) on loan hedges are related to corporate loan portfolio for the three and nine months ended September 30, 2019, respectively. Citigroup’s results of operations excluding the impact of gains (losses) on loan hedges are non-GAAP financial measures.
(2)    The second quarter of 2019 includes an approximate $350 million gain on Citi’s investment in Tradeweb.
(3)    Excludes principal transactions revenues of ICG businesses other than Markets, primarily treasury and trade solutions and the private bank.
(4)    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 revenue may be risk managed by derivatives that are recorded in Principal transactions revenue. For a description of the composition of these revenue line items, see Notes 4, 5 and 6 to the Consolidated Financial Statements.
NM Not meaningful

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

3Q20 vs. 3Q19
Net income decreased 10%, as higher credit costs and higher expenses were partially offset by higher revenues.
Revenues were up 5%, reflecting higher Markets and securities services revenues (increase of 16%), partially offset by lower Banking revenues (decline of 4% including the impact of losses on loan hedges). Excluding the impact of losses on loan hedges, Banking revenues were down 2%, driven by lower revenues in treasury and trade solutions and corporate lending, partially offset by higher revenues in investment banking and the private bank. Markets and securities services revenues were up 16%, reflecting higher revenues in both fixed income and equity markets, driven by increased client activity, partially offset by lower revenues in securities services.

Within Banking:

Investment banking revenues were up 13%, reflecting growth in overall market wallet as well as gains in wallet share. Advisory revenues decreased 41%, largely reflecting a decline in the market wallet. Equity underwriting revenues increased 96%, reflecting growth in North America, EMEA and Asia, driven by continued strength in the market wallet as well as wallet share gains. Debt underwriting revenues increased 5%, reflecting particular strength in North America and Asia, partially offset by EMEA. The increase in revenues was largely driven by a higher market wallet in investment grade debt underwriting.
Treasury and trade solutions revenues decreased 6%. Excluding the impact of FX translation, revenues decreased 4%, driven by declines in EMEA and Asia, partially offset by growth in North America. The decline in revenues was driven by both the cash and trade businesses. The decline in revenues in the cash business reflected the continued impact of lower interest rates and a slowdown in commercial cards spend driven by the impact of the pandemic, partially offset by strong deposit volumes. Average deposit balances increased 25% (26% excluding the impact of FX translation), reflecting strong client engagement and solid growth across all regions. In trade, revenues were impacted by a decline in trade fees and trade loans, reflecting a slowdown in underlying trade related to the pandemic, partially offset by improved trade spreads.
Corporate lending revenues decreased 38%, including higher losses on loan hedges, as credit spreads tightened during the quarter. Excluding the impact of losses on loan hedges, revenues decreased 25%, as higher volumes were more than offset by lower spreads. Average loans were up 3% from the prior-year period, reflecting elevated volumes as the business continued to assist clients with sourcing liquidity in the evolving environment. Average loans declined 13% from the prior quarter, largely reflecting repayments.
Private bank revenues increased 7%. Excluding the impact of losses on loan hedges, revenues increased 8%, reflecting particular strength in Asia and EMEA. The increase was driven by continued strong client activity, particularly in capital markets as well as higher managed investments revenues and higher loan and deposit volumes, partially offset by lower deposit spreads due to the low interest rate environment.

Within Markets and securities services:

Fixed income markets revenues increased 18%, reflecting strength in North America and EMEA, largely driven by strong client activity in spread products and commodities. Non-interest revenues increased, reflecting higher corporate and investor activity, as volumes remained elevated particularly in spreads products and commodities. Net interest revenues also increased, largely reflecting a change in the mix of trading positions.
Rates and currencies revenues were largely unchanged. Spread products and other fixed income revenues increased 76%, reflecting strong client activity following robust primary issuance, particularly in flow trading and financing products, as well as a more favorable market making environment, as evidenced by spread tightening. Commodities revenues increased, reflecting a more favorable market making environment, as volatility remained elevated, particularly in gold and oil.
Equity markets revenues increased 15%, driven by higher revenues in cash equities and derivatives, partially offset by lower revenues in prime finance. Equity derivatives revenues increased, reflecting strong client activity and continued market volatility, particularly in North America. Cash equities revenues increased driven by elevated levels of client activity. The decline in prime
28


finance revenues was largely due to lower financing spreads.
Securities services revenues decreased 5%. Excluding the impact of FX translation, revenues decreased 4%, driven by EMEA and Latin America, as higher deposit volumes were more than offset by lower deposit spreads due to the low interest rate environment.

For additional information on trends in ICG’s deposit and trade loans, see “Managing Global Risk—Liquidity Risk—Loans” and “—Deposits” below.

Expenses were up 3%, reflecting continued investments in infrastructure, risk management and controls, higher compensations costs and volume-driven growth, partially offset by efficiency savings.
Provisions increased to $838 million, primarily reflecting a higher ACL build as well as higher net credit losses. Net credit losses were $326 million, compared to $110 million in the prior-year period, largely driven by write-offs across various sectors in both North America and EMEA, primarily reflecting smaller-sized energy and energy-related exposures. The net credit losses were largely offset by the release of previously established ACL reserves.
The ACL build was $529 million, compared to $43 million in the prior-year period under prior accounting standards. The higher build was primarily driven by an increase in the qualitative management adjustment component of the reserve to reflect the potential for a higher level of stress and/or somewhat slower economic recovery.
The ACL build consisted of a $106 million build for funded loans and a $423 million provision on unfunded lending commitments. This relative difference in the builds in part reflected the release of certain reserves held against funded loans and builds against the unfunded lending commitments when the funded loans (particularly under revolving line of credit facilities) were repaid during the quarter. The provision for unfunded lending commitments also was driven by downgrades, and the increase in the qualitative management adjustment noted above.
As of September 30, 2020, reserves held on Citi’s balance sheet represented 1.8% of funded loans, compared to 1.7% as of June 30, 2020, including 5.7% of reserves held against the non-investment grade portion, compared to 4.9% as of June 30, 2020.
For additional information on ICG’s corporate credit portfolio, see “Managing Global Risk—Credit Risk—Corporate Credit” below.
For additional information on Citi’s ACL, see “Significant Accounting Policies and Significant Estimates” below, and Notes 1, 13 and 14 to the Consolidated Financial Statements.
For additional information about trends, uncertainties and risks related to the pandemic, see “COVID-19 Pandemic Overview” and “Risk Factors” above.


2020 YTD vs. 2019 YTD
Net income decreased 16%, as significantly higher cost of credit and higher expenses were partially offset by higher revenues.
Revenues were up 17%, driven by a 34% increase in Markets and securities services revenues as well as a 2% increase in Banking revenues (including the impact of gains (losses) on loan hedges). Excluding the impact of gains (losses) on loan hedges, Banking revenues declined 2%, as growth in investment banking and the private bank was more than offset by a decrease in treasury and trade solutions and corporate lending. Excluding the pretax gain of approximately $350 million on Citi’s investment in Tradeweb in the prior-year period, Markets and securities services revenues increased 37%, primarily driven by growth in both fixed income markets and equity markets, partially offset by a decline in securities services.

Within Banking:

Investment banking revenues increased 16%. Advisory revenues decreased 12%, reflecting a decline in the overall market wallet, despite gains in share. Equity underwriting revenues increased 58%, primarily reflecting growth in the market wallet and gains in share. Debt underwriting revenues increased 14%, reflecting growth in the market wallet as well as gains in share.
Treasury and trade solutions revenues decreased 7%. Excluding the impact of FX translation, revenues decreased 5%, reflecting lower revenues in both cash and trade, driven by the same factors described above.
Corporate lending revenues were largely unchanged, including gains on loan hedges in the current period compared to losses in the prior-year period. Excluding the impact of gains (losses) on loan hedges, revenues decreased 25%, primarily driven by lower loan spreads and an adjustment to the residual value of a lease financing asset, partially offset by higher loan volumes.
Private bank revenues increased 10%. Excluding the impact of gains on loan hedges in the current period, revenues increased 9%, reflecting strength across all regions, driven by the same factors described above.

Within Markets and securities services:

Fixed income markets revenues increased 42%. Excluding the Tradeweb gain in the prior-year period, revenues increased 47%, reflecting higher revenues across all regions, with strong performance across rates and currencies, spread products, and commodities due to the impact of market conditions, including elevated volatility, related to pandemic. Non-interest revenues increased, reflecting higher corporate and investor client activity, as volatility, volumes and spreads remained elevated. Net interest revenues also increased, reflecting lower funding costs as well as a change in the mix of trading positions in support of client activity.
Equity markets revenues increased 18%, driven largely by higher revenues in both cash equities and equity derivatives, partially offset by lower revenues in prime finance.
29


Securities services revenues declined 4% (down 2% excluding the impact of foreign exchange) driven by the same factors described above.

Expenses were up 4%, driven by the same factors described above.
Provisions increased to $6.7 billion, driven by net credit losses of $777 million, compared to $279 million in the prior-year period, and an ACL build of $5.9 billion compared to a modest build in the prior-year period. The increase in net credit losses was driven by the same factors described above.
The increase in the ACL build primarily reflected the impact of a deterioration in the macroeconomic outlook under the CECL standard, driven by the impact of the pandemic across multiple sectors, as well as downgrades in the portfolio over the course of the year. Sectors significantly impacted by the pandemic (including energy and energy-related, aviation, consumer retail, commercial real estate and autos) drove approximately half of the ACL reserve build year-to-date. The ACL build also included an increase in the qualitative management adjustment component of the reserve to reflect the potential for a higher level of stress and/or somewhat slower economic recovery.



30


CORPORATE/OTHER
Corporate/Other includes certain unallocated costs of global staff functions (including finance, risk, human resources, legal and compliance), other corporate expenses and unallocated global operations and technology expenses and income taxes, as well as Corporate Treasury, certain North America legacy consumer loan portfolios, other legacy assets and discontinued operations (for additional information on Corporate/Other, see “Citigroup Segments” above). At September 30, 2020, Corporate/Other had $96 billion in assets.
Third QuarterNine Months% Change
In millions of dollars20202019% Change20202019
Net interest revenue$(231)$443 NM$68 $1,596 (96)%
Non-interest revenue7 (9)NM71 (124)NM
Total revenues, net of interest expense$(224)$434 NM$139 $1,472 (91)%
Total operating expenses$969 $485 100 %$1,854 $1,515 22 %
Net credit losses (recoveries) on loans$(5)$NM$(12)$NM
Credit reserve build (release) for loans(128)(16)NM223 (62)NM
Provision (release) for credit losses on unfunded lending commitments1 —  %7 (5)NM
Provisions (releases) for benefits and claims, HTM debt securities and other assets(4)— NM2 — 100 %
Provisions (release) for credit losses and for benefits and claims$(136)$(15)NM$220 $(62)NM
Income (loss) from continuing operations before taxes$(1,057)$(36)NM$(1,935)$19 NM
Income taxes (benefits)(341)(247)(38)%(717)(263)NM
Income (loss) from continuing operations$(716)$211 NM$(1,218)$282 NM
Income (loss) from discontinued operations, net of taxes(7)(15)53 %(26)—  %
Net income (loss) before attribution of noncontrolling interests$(723)$196 NM$(1,244)$282 NM
Noncontrolling interests (100)%(7)18 NM
Net income (loss)$(723)$191 NM$(1,237)$264 NM
NM Not meaningful

3Q20 vs. 3Q19
Net loss was $723 million, compared to net income of $191 million in the prior-year period, largely driven by lower revenues and higher expenses, partially offset by lower cost of credit.
Revenues of $(224) million, decreased $658 million, reflecting the wind-down of legacy assets, the impact of lower rates and marks on securities.
Expenses of $969 million, increased significantly, as the wind-down of legacy assets was more than offset by the $400 million civil money penalty (for additional information, see “Executive Summary” above), investments in infrastructure, risk management and controls, and incremental costs associated with the pandemic.
Provisions decreased $121 million to a net benefit of $136 million, primarily driven by an ACL release of $132 million on legacy assets (versus a $16 million release in the prior-year period under prior accounting standards).
For additional information on Citi’s ACL, see “Significant Accounting Policies and Significant Estimates” below, and Notes 1 and 14 to the Consolidated Financial Statements.



2020 YTD vs. 2019 YTD
Net loss was $1.2 billion, compared to net income of $264 million in the prior-year period, largely reflecting lower revenues, higher expenses and significantly higher cost of credit.
Revenues decreased 91%, reflecting the same factors described above, partially offset by gains on securities.
Expenses of $1.9 billion increased 22%, driven by the same factors described above.
Provisions of $220 million increased $282 million (versus a release in the prior-year period), primarily driven by an ACL build on legacy assets (versus a release in the prior-year period under prior accounting standards). The ACL build of $223 million primarily reflected the impact of deterioration in Citi’s macroeconomic outlook in each of the first and second quarters of 2020, mainly driven by the pandemic, on estimated lifetime credit losses under CECL (compared to a release of $67 million in the prior-year period under prior accounting standards).

31


OFF-BALANCE SHEET ARRANGEMENTS

The table below shows where a discussion of Citi’s various off-balance sheet arrangements in this Form 10-Q may be found. For additional information, see “Off-Balance Sheet Arrangements” and Notes 1, 21 and 26 to the Consolidated Financial Statements in Citigroup’s 2019 Annual Report on Form 10-K.
Types of Off-Balance Sheet Arrangements Disclosures in this Form 10-Q
Variable interests and other obligations, including contingent obligations, arising from variable interests in nonconsolidated VIEsSee Note 18 to the Consolidated Financial Statements.
Letters of credit, and lending and other commitmentsSee Note 22 to the Consolidated Financial Statements.
GuaranteesSee Note 22 to the Consolidated Financial Statements.
32


CAPITAL RESOURCES
For additional information about capital resources, including Citi’s capital management, the stress testing component of capital planning, current regulatory capital standards and regulatory capital standards developments, see “Capital Resources” and “Risk Factors” in Citi’s 2019 Annual Report on Form 10-K.
During the third quarter of 2020, Citi returned a total of $1.1 billion of capital to common shareholders in the form of common share dividends. On March 15, 2020, Citi announced it had joined other major U.S. banks in suspending stock repurchases to support clients in light of the COVID-19 pandemic. For additional information, see “Unregistered Sales of Equity Securities, Repurchases of Equity Securities and Dividends—Equity Security Repurchases” below.

Common Equity Tier 1 Capital Ratio
Citi’s reportable Common Equity Tier 1 Capital ratio was 11.8% as of September 30, 2020, compared to 11.6% as of June 30, 2020, both under the Basel III Advanced Approaches framework. Citi’s reportable Common Equity Tier 1 Capital ratio was 11.8% under the Basel III Standardized Approach as of December 31, 2019. Citi’s Common Equity Tier 1 Capital ratio increased from June 30, 2020, largely driven by net income of $3.2 billion and beneficial net movements in Accumulated other comprehensive income (AOCI), partially offset by the return of $1.1 billion of capital to common shareholders in the form of common share dividends, as well as an increase in market risk-weighted assets.
Citi’s Common Equity Tier 1 Capital ratio remained unchanged from year-end 2019, as a net increase in risk-weighted assets and the return of $6.2 billion of capital to common shareholders in the form of share repurchases and dividends were offset by year-to-date net income of $7.1 billion and the relief of the modified CECL transition provision.

Regulatory Capital Relief Resulting from the COVID-19 Pandemic
During the third quarter of 2020, the U.S. banking agencies finalized several prior interim final rules that revised the current regulatory capital standards applicable to Citi, in light of the pandemic. The final rules ease capital distribution limitations in an effort to reduce the impact of using regulatory capital buffers, modify the regulatory capital transition provision related to the Current Expected Credit Losses (CECL) methodology, and neutralize the regulatory capital impact of the Money Market Mutual Fund Liquidity Facility and the Paycheck Protection Program. Each of the final rules are substantially unchanged from the respective interim final rules that preceded them, and are already effective for Citi. For additional information regarding these rules, see “Capital Resources—Regulatory Capital Relief Resulting from the COVID-19 Pandemic” in Citi’s First Quarter of 2020 Form 10-Q and Second Quarter of 2020 Form 10-Q.

33


Citigroup’s Capital Resources
The following tables set forth Citi’s capital components and ratios:
Advanced ApproachesStandardized Approach
In millions of dollars, except ratios
Effective Minimum Requirement(1)
September 30, 2020June 30, 2020December 31, 2019September 30, 2020June 30, 2020December 31, 2019
Common Equity Tier 1 Capital(2)
$142,234 $139,643 $137,798 $142,234 $139,643 $137,798 
Tier 1 Capital160,387 157,631 155,805 160,387 157,631 155,805 
Total Capital (Tier 1 Capital
  + Tier 2 Capital)(2)
189,499 187,553 181,337 198,153 196,452 193,682 
Total Risk-Weighted Assets(3)
1,210,190 1,205,123 1,135,553 1,174,936 1,187,331 1,166,523 
   Credit Risk(2)
$812,237 $809,748 $771,508 $1,074,436 $1,092,943 $1,107,775 
   Market Risk96,873 91,496 57,317 100,500 94,388 58,748 
   Operational Risk301,080 303,879 306,728  — — 
Common Equity Tier 1
  Capital ratio(4)
10.0 %11.75 %11.59 %12.13 %12.11 %11.76 %11.81 %
Tier 1 Capital ratio(4)
11.5 13.25 13.08 13.72 13.65 13.28 13.36 
Total Capital ratio(4)
13.5 15.66 15.56 15.97 16.86 16.55 16.60 
In millions of dollars, except ratiosEffective Minimum RequirementSeptember 30, 2020June 30, 2020December 31, 2019
Quarterly Adjusted Average Total Assets(2)(5)(6)
$2,224,523 $2,228,062 $1,957,039 
Total Leverage Exposure(2)(5)(7)
2,347,948 2,367,578 2,507,891 
Tier 1 Leverage ratio4.0 %7.21 %7.07 %7.96 %
Supplementary Leverage ratio5.0 6.83 6.66 6.21 

(1)Citi’s effective minimum risk-based capital requirements include the 2.5% Capital Conservation Buffer and the 3.0% GSIB surcharge (all of which must be composed of Common Equity Tier 1 Capital).
(2)Citi has elected to apply the modified transition provision related to the impact of the CECL accounting standard on regulatory capital, as provided by the U.S. banking agencies’ September 2020 final rule. Under the modified CECL transition provision, the changes in retained earnings (after-tax), deferred tax assets (DTAs) arising from temporary differences, and the allowance for credit losses upon the January 1, 2020 CECL adoption date have been deferred and will phase in to regulatory capital at 25% per year commencing January 1, 2022. For the ongoing impact of CECL, Citigroup is allowed to adjust retained earnings and the allowance for credit losses in an amount equal to 25% of the change in the allowance for credit losses recognized through earnings (pre-tax) for each period between January 1, 2020 and December 31, 2021. The cumulative adjustments to retained earnings and the allowance for credit losses between January 1, 2020 and December 31, 2021 will also phase in to regulatory capital at 25% per year commencing January 1, 2022, along with the deferred impacts related to the January 1, 2020 CECL adoption date. Corresponding adjustments to average on-balance sheet assets are reflected in quarterly adjusted average total assets and Total Leverage Exposure. Additionally, the increase in DTAs arising from temporary differences upon the January 1, 2020 adoption date has been deducted from risk-weighted assets (RWA) and will phase in to RWA at 25% per year commencing January 1, 2022.
(3)Commencing with the quarter ended June 30, 2020, loans originated under the Paycheck Protection Program receive a 0% risk weight under the Advanced Approaches and Standardized Approach.
(4)Citi’s reportable Common Equity Tier 1 Capital and Tier 1 Capital ratios were derived under the Basel III Advanced Approaches framework as of September 30, 2020 and June 30, 2020, and the Basel III Standardized Approach as of December 31, 2019, whereas Citi’s reportable Total Capital ratio was the lower derived under the Basel III Advanced Approaches framework for all periods presented.
(5)Commencing with the second quarter of 2020, exposures pledged as collateral pursuant to a non-recourse loan that is provided as part of the Paycheck Protection Program Liquidity Facility are excluded from quarterly adjusted average total assets and Total Leverage Exposure.
(6)Tier 1 Leverage ratio denominator. Represents quarterly average total assets less amounts deducted from Tier 1 Capital.
(7)Supplementary Leverage ratio denominator. Commencing with the second quarter of 2020, Citigroup’s Total Leverage Exposure temporarily excludes U.S. Treasuries and deposits at Federal Reserve Banks. For additional information, see “Capital Resources—Regulatory Capital Relief Resulting from the COVID-19 Pandemic—Temporary Supplementary Leverage Ratio Relief” in Citi’s Second Quarter of 2020 Form 10-Q.

As indicated in the table above, Citigroup’s risk-based capital ratios at September 30, 2020 were in excess of the stated and effective minimum requirements under the U.S. Basel III rules. In addition, Citi was also “well capitalized” under current federal bank regulatory agency definitions as of September 30, 2020.


34


Components of Citigroup Capital
In millions of dollarsSeptember 30,
2020
December 31,
2019
Common Equity Tier 1 Capital
Citigroup common stockholders’ equity(1)
$176,047 $175,414 
Add: Qualifying noncontrolling interests141 154 
Regulatory capital adjustments and deductions:
Add: CECL transition and 25% provision deferral(2)
5,710 — 
Less: Accumulated net unrealized gains (losses) on cash flow hedges, net of tax1,859 123 
Less: Cumulative unrealized net gain (loss) related to changes in fair value of
   financial liabilities attributable to own creditworthiness, net of tax
29 (679)
Less: Intangible assets:
Goodwill, net of related DTLs(3)
20,522 21,066 
Identifiable intangible assets other than MSRs, net of related DTLs
4,248 4,087 
Less: Defined benefit pension plan net assets949 803 
Less: DTAs arising from net operating loss, foreign tax credit and general
   business credit carry-forwards(4)
12,057 12,370 
Total Common Equity Tier 1 Capital (Advanced Approaches and Standardized Approach)$142,234 $137,798 
Additional Tier 1 Capital
Qualifying noncumulative perpetual preferred stock(1)
$17,829 $17,828 
Qualifying trust preferred securities(5)
1,393 1,389 
Qualifying noncontrolling interests34 42 
Regulatory capital deductions:
Less: Permitted ownership interests in covered funds(6)
1,075 1,216 
Less: Minimum regulatory capital requirements of insurance underwriting subsidiaries(7)
28 36 
Total Additional Tier 1 Capital (Advanced Approaches and Standardized Approach)$18,153 $18,007 
Total Tier 1 Capital (Common Equity Tier 1 Capital + Additional Tier 1 Capital)
   (Advanced Approaches and Standardized Approach)
$160,387 $155,805 
Tier 2 Capital
Qualifying subordinated debt$23,878 $23,673 
Qualifying trust preferred securities(8)
323 326 
Qualifying noncontrolling interests41 46 
Excess of eligible credit reserves over expected credit losses(2)(9)
4,898 1,523 
Regulatory capital deduction:
Less: Minimum regulatory capital requirements of insurance underwriting subsidiaries(7)
28 36 
Total Tier 2 Capital (Advanced Approaches)$29,112 $25,532 
Total Capital (Tier 1 Capital + Tier 2 Capital) (Advanced Approaches)$189,499 $181,337 
Adjustment for eligible allowance for credit losses(2)(9)
$8,654 $12,345 
Total Tier 2 Capital (Standardized Approach)$37,766 $37,877 
Total Capital (Tier 1 Capital + Tier 2 Capital) (Standardized Approach)$198,153 $193,682 

(1)Issuance costs of $151 million as of September 30, 2020 and $152 million as of December 31, 2019 are related to outstanding noncumulative perpetual preferred stock, are excluded from common stockholders’ equity and are netted against such preferred stock in accordance with Federal Reserve Board regulatory reporting requirements, which differ from those under U.S. GAAP.
(2)Citi has elected to apply the modified transition provision related to the impact of the CECL accounting standard on regulatory capital, as provided by the U.S. banking agencies’ September 2020 final rule. Under the modified CECL transition provision, the changes in retained earnings (after-tax) and the allowance for credit losses upon the January 1, 2020 CECL adoption date have been deferred and will phase in to regulatory capital at 25% per year commencing January 1, 2022. For the ongoing impact of CECL, Citigroup is allowed to adjust retained earnings and the allowance for credit losses in an amount equal to 25% of the change in the allowance for credit losses recognized through earnings (pre-tax) for each period between January 1, 2020 and December 31, 2021. The cumulative adjustments to retained earnings and the allowance for credit losses between January 1, 2020 and December 31, 2021 will also phase in to regulatory capital at 25% per year commencing January 1, 2022, along with the deferred impacts related to the January 1, 2020 CECL adoption date.
(3)Includes goodwill “embedded” in the valuation of significant common stock investments in unconsolidated financial institutions.


Footnotes continue on the following page.
35


(4)Of Citi’s $24.8 billion of net DTAs at September 30, 2020, $15.2 billion was includable in Common Equity Tier 1 Capital pursuant to the U.S. Basel III rules, while $9.6 billion was excluded. Excluded from Citi’s Common Equity Tier 1 Capital as of September 30, 2020 was $12.1 billion of net DTAs arising from net operating loss, foreign tax credit and general business credit carry-forwards, which was reduced by $2.5 billion of net DTLs primarily associated with goodwill and certain other intangible assets. Separately, under the U.S. Basel III rules, goodwill and these other intangible assets are deducted net of associated DTLs in arriving at Common Equity Tier 1 Capital. DTAs arising from net operating loss, foreign tax credit and general business credit carry-forwards are required to be entirely deducted from Common Equity Tier 1 Capital under the U.S. Basel III rules. Citi’s DTAs arising from temporary differences are less than the 10% limitation under the U.S. Basel III rules and therefore not subject to deduction from Common Equity Tier 1 Capital, but are subject to risk weighting at 250%.
(5)Represents Citigroup Capital XIII trust preferred securities, which are permanently grandfathered as Tier 1 Capital under the U.S. Basel III rules.
(6)Banking entities are required to be in compliance with the Volcker Rule of the Dodd-Frank Act, which prohibits conducting certain proprietary investment activities and limits their ownership of, and relationships with, covered funds. The U.S. agencies issued a revised Volcker Rule 2.0 in November 2019 that removes permitted investments in third-party covered funds from capital deduction requirements, among other changes. Upon the removal of the capital deduction, permitted investments in third-party covered funds will be included in risk-weighted assets. Mandatory compliance with the revised Volcker Rule 2.0 is required by January 1, 2021, with early adoption permitted, in whole or in part, beginning January 1, 2020. Additionally, the U.S. agencies issued a revised Volcker Rule 2.1 in July 2020 that improves and streamlines several “covered funds” requirements, with an effective date of October 1, 2020. Citi continues to deduct from Tier 1 Capital all permitted ownership interests in covered funds for all periods presented.
(7)50% of the minimum regulatory capital requirements of insurance underwriting subsidiaries must be deducted from each of Tier 1 Capital and Tier 2 Capital.
(8)Represents the amount of non-grandfathered trust preferred securities eligible for inclusion in Tier 2 Capital under the U.S. Basel III rules, which will be fully phased-out of Tier 2 Capital by January 1, 2022.
(9)Under the Advanced Approaches framework, 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 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. The total amount of allowance for credit losses that were eligible for inclusion in Tier 2 Capital, subject to limitation, under the Standardized Approach framework was $13.6 billion and $13.9 billion at September 30, 2020 and December 31, 2019, respectively.
36


Citigroup Capital Rollforward
In millions of dollarsThree Months Ended
September 30, 2020
Nine Months Ended 
 September 30, 2020
Common Equity Tier 1 Capital, beginning of period$139,643 $137,798 
Net income3,230 7,068 
Common and preferred dividends declared(1,358)(4,054)
Net change in treasury stock6 (2,477)
Net change in common stock and additional paid-in capital96 (77)
Net change in foreign currency translation adjustment net of hedges, net of tax897 (2,651)
Net change in unrealized gains (losses) on debt securities AFS, net of tax(282)3,683 
Net change in defined benefit plans liability adjustment, net of tax246 (117)
Net change in adjustment related to change in fair value of financial liabilities attributable to own creditworthiness, net of tax57 (107)
Net change in excluded component of fair value hedges(39)1 
Net change in goodwill, net of related DTLs(247)544 
Net increase in identifiable intangible assets other than MSRs, net of related DTLs(382)(161)
Net change in defined benefit pension plan net assets11 (146)
Net decrease in DTAs arising from net operating loss, foreign tax credit and general business credit carry-forwards256 313 
CECL 25% provision deferral104 2,642 
Other(4)(25)
Net increase in Common Equity Tier 1 Capital$2,591 $4,436 
Common Equity Tier 1 Capital, end of period
  (Advanced Approaches and Standardized Approach)
$142,234 $142,234 
Additional Tier 1 Capital, beginning of period$17,988 $18,007 
Net change in qualifying perpetual preferred stock 1 
Net increase in qualifying trust preferred securities1 4 
Net decrease in permitted ownership interests in covered funds169 141 
Other(5) 
Net increase in Additional Tier 1 Capital$165 $146 
Tier 1 Capital, end of period
  (Advanced Approaches and Standardized Approach)
$160,387 $160,387 
Tier 2 Capital, beginning of period (Advanced Approaches)$29,922 $25,532 
Net change in qualifying subordinated debt(830)205 
Net increase in excess of eligible credit reserves over expected credit losses18 3,375 
Other2  
Net change in Tier 2 Capital (Advanced Approaches)$(810)$3,580 
Tier 2 Capital, end of period (Advanced Approaches)$29,112 $29,112 
Total Capital, end of period (Advanced Approaches)$189,499 $189,499 
Tier 2 Capital, beginning of period (Standardized Approach)$38,821 $37,877 
Net change in qualifying subordinated debt(830)205 
Net decrease in eligible allowance for credit losses(227)(316)
Other2  
Net decrease in Tier 2 Capital (Standardized Approach)$(1,055)$(111)
Tier 2 Capital, end of period (Standardized Approach)$37,766 $37,766 
Total Capital, end of period (Standardized Approach)$198,153 $198,153 

37


Citigroup Risk-Weighted Assets Rollforward (Basel III Advanced Approaches)
In millions of dollarsThree Months Ended
September 30, 2020
Nine Months Ended
September 30, 2020
 Total Risk-Weighted Assets, beginning of period$1,205,123 $1,135,553 
Changes in Credit Risk-Weighted Assets
Retail exposures(1)
(4,299)(23,410)
Wholesale exposures(2)
(6,641)26,321 
Repo-style transactions(3)
3,356 14,341 
Securitization exposures(501)(2,211)
Equity exposures531 50 
Over-the-counter (OTC) derivatives(4)
6,581 15,202 
Derivatives CVA(5)
(1,077)10,575 
Other exposures(6)
4,302 (2,082)
Supervisory 6% multiplier237 1,943 
Net increase in Credit Risk-Weighted Assets$2,489 $40,729 
Changes in Market Risk-Weighted Assets
Risk levels(7)
$2,898 $25,018 
Model and methodology updates(7)
2,479 14,538 
 Net increase in Market Risk-Weighted Assets$5,377 $39,556 
Net decrease in Operational Risk-Weighted Assets(8)
$(2,799)$(5,648)
Total Risk-Weighted Assets, end of period$1,210,190 $1,210,190 

(1)Retail exposures decreased during the three months ended September 30, 2020 primarily driven by lesser spending for qualifying revolving (cards) exposures due to the pandemic. Retail exposures decreased during the nine months ended September 30, 2020 primarily driven by seasonal holiday spending repayments and lesser spending for qualifying revolving (cards) exposures due to the pandemic.
(2)Wholesale exposures decreased during the three months ended September 30, 2020 primarily due to decrease in commercial loans. Wholesale exposures increased during the nine months ended September 30, 2020 primarily due to increases in commercial loans, AFS and HTM securities and rating downgrades partially offset by annual model parameter updates reflecting Citi’s loss experiences.
(3)Repo-style transactions include repurchase and reverse repurchase transactions as well as securities borrowing and securities lending transactions. Repo-style transactions increased during the three months ended September 30, 2020 mainly driven by increase in exposure. Repo-style transactions increased during the nine months ended September 30, 2020 mainly driven by market volatility and increase in exposure.
(4)OTC derivatives increased during the three and nine months ended September 30, 2020 primarily due to an increase in exposure for bilateral derivatives.
(5)Derivatives CVA decreased during the three months ended September 30, 2020 primarily driven by decrease in market volatility. Derivatives CVA increased during the nine months ended September 30, 2020 primarily due to widening credit spreads and market volatility.
(6)Other exposures include cleared transactions, unsettled transactions, assets other than those reportable in specific exposure categories and non-material portfolios. Other exposures increased during the three months ended September 30, 2020 primarily due to increases in other assets and cleared derivative transactions.
(7)Market risk-weighted assets increased during the three months ended September 30, 2020 primarily due to an increase in exposure subject to standard specific risk charges. Market risk-weighted assets increased during the nine months ended September 30, 2020 primarily driven by increases in market volatility due to the pandemic.
(8)Operational risk-weighted assets decreased during the three and nine months ended September 30, 2020 primarily due to changes in operational loss severity and frequency.




38


Citigroup Risk-Weighted Assets Rollforward (Basel III Standardized Approach)
In millions of dollarsThree Months Ended
September 30, 2020
Nine Months Ended
September 30, 2020
 Total Risk-Weighted Assets, beginning of period$1,187,331 $1,166,523 
Changes in Credit Risk-Weighted Assets
General credit risk exposures(1)
(24,514)(37,677)
Repo-style transactions(2)
(10,424)7,166 
Securitization exposures1,144 (64)
Equity exposures363 (118)
Over-the-counter (OTC) derivatives(3)
2,522 10,824 
Other exposures(4)
6,249 (6,827)
Off-balance sheet exposures(5)
6,153 (6,643)
Net decrease in Credit Risk-Weighted Assets$(18,507)$(33,339)
Net Increase in Market Risk-Weighted Assets
Risk levels(6)
$3,633 $27,214 
Model and methodology updates(6)
2,479 14,538 
Net increase in Market Risk-Weighted Assets$6,112 $41,752 
Total Risk-Weighted Assets, end of period$1,174,936 $1,174,936 

(1)General credit risk exposures include cash and balances due from depository institutions, securities, and loans and leases. General credit risk exposures decreased during the three months ended September 30, 2020 primarily due to reductions in commercial loans and lesser spending for qualifying revolving (cards) exposures due to the pandemic. General credit risk exposures decreased during the nine months ended September 30, 2020 primarily due to seasonal holiday spending repayments and lesser spending for qualifying revolving (cards) exposures due to the pandemic.
(2)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, 2020, primarily due to volume and exposure driven decreases. Repo-style transactions increased during the nine months ended September 30, 2020, primarily due to volume and exposure driven increases.
(3)OTC derivatives increased during the three and nine months ended September 30, 2020, primarily due to an increase in exposure for bilateral derivatives.
(4)Other exposures include cleared transactions, unsettled transactions, and other assets. Other exposures increased during the three months ended September 30, 2020 primarily due to increases in other assets and cleared derivative transactions. Other exposures decreased during the nine months ended September 30, 2020 primarily due to decreases in cleared derivative transactions and excess of credit reserves not included in Tier 2 capital that are eligible for RWA reduction.
(5)Off-balance sheet exposures increased during the three months ended September 30, 2020, primarily due to an increase in loan commitments. Off-balance sheet exposures decreased during the nine months ended September 30, 2020 primarily due to a reduction in loan commitments.
(6)Market risk-weighted assets increased during the three months ended September 30, 2020 primarily due to an increase in exposure subject to standard specific risk charges. Market risk-weighted assets increased during the nine months ended September 30, 2020 primarily driven by increases in market volatility due to the pandemic.




39


Supplementary Leverage Ratio
The following table sets forth Citi’s Supplementary Leverage ratio and related components:
In millions of dollars, except ratiosSeptember 30, 2020June 30, 2020December 31, 2019
Tier 1 Capital$160,387 $157,631 $155,805 
Total Leverage Exposure
On-balance sheet assets(1)(2)(3)
$1,844,681 $1,878,949 $1,996,617 
Certain off-balance sheet exposures:(4)
   Potential future exposure on derivative contracts174,676 163,829 169,478 
   Effective notional of sold credit derivatives, net(5)
33,103 37,867 38,481 
   Counterparty credit risk for repo-style transactions(6)
18,095 20,641 23,715 
   Unconditionally cancellable commitments71,338 71,887 70,870 
   Other off-balance sheet exposures244,934 233,089 248,308 
Total of certain off-balance sheet exposures$542,146 $527,313 $550,852 
Less: Tier 1 Capital deductions(38,879)(38,684)(39,578)
Total Leverage Exposure(3)
$2,347,948 $2,367,578 $2,507,891 
Supplementary Leverage ratio6.83 %6.66 %6.21 %

(1)Represents the daily average of on-balance sheet assets for the quarter.
(2)Citi has elected to apply the modified transition provision related to the impact of the CECL accounting standard on regulatory capital, as provided by the U.S. banking agencies’ September 2020 final rule. Under the modified CECL transition provision, the changes in DTAs arising from temporary differences and the allowance for credit losses upon the January 1, 2020 CECL adoption date have been deferred and will phase in to regulatory capital at 25% per year commencing January 1, 2022. For the ongoing impact of CECL, Citigroup is allowed to adjust the allowance for credit losses in an amount equal to 25% of the change in the allowance for credit losses recognized through earnings (pre-tax) for each period between January 1, 2020 and December 31, 2021. The cumulative adjustments to the allowance for credit losses between January 1, 2020 and December 31, 2021 will also phase in to regulatory capital at 25% per year commencing January 1, 2022, along with the deferred impacts related to the January 1, 2020 CECL adoption date. Corresponding adjustments to average on-balance sheet assets are reflected in Total Leverage Exposure.
(3)Commencing with the second quarter of 2020, Citigroup’s Total Leverage Exposure temporarily excludes U.S. Treasuries and deposits at Federal Reserve Banks. For additional information, see “Capital Resources—Regulatory Capital Relief Resulting from the COVID-19 Pandemic—Temporary Supplementary Leverage Ratio Relief” in Citi’s Second Quarter of 2020 Form 10-Q.
(4)Represents the average of certain off-balance sheet exposures calculated as of the last day of each month in the quarter.
(5)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.
(6)Repo-style transactions include repurchase and reverse repurchase transactions as well as securities borrowing and securities lending transactions.

As set forth in the table above, Citigroup’s Supplementary Leverage ratio was 6.8% for the third quarter of 2020, compared to 6.7% for the second quarter of 2020, and 6.2% for the fourth quarter of 2019. The ratio increased from the second quarter of 2020 primarily due to net income of $3.2 billion and a decrease in Total Leverage Exposure, partially offset by the return of $1.1 billion of capital to common shareholders. The ratio increased from the fourth quarter of 2019, primarily driven by a decrease in Total Leverage Exposure mainly attributable to the 103 basis point benefit resulting from the Federal Reserve Board’s temporary Supplementary Leverage ratio relief.
40


Capital Resources of Citigroup’s Subsidiary U.S. Depository Institutions
Citigroup’s subsidiary U.S. depository institutions, including Citibank, are also subject to regulatory capital standards issued by their respective primary federal bank regulatory agencies, which are similar to the standards of the Federal Reserve Board.
The following tables set forth Citibank’s capital components and ratios:






Advanced ApproachesStandardized Approach
In millions of dollars, except ratios
Effective Minimum Requirement(1)
September 30, 2020June 30, 2020December 31, 2019September 30, 2020June 30, 2020December 31, 2019
Common Equity Tier 1 Capital(2)
$138,384 $137,476 $130,720 $138,384 $137,476 $130,720 
Tier 1 Capital140,471 139,560 132,847 140,471 139,560 132,847 
Total Capital (Tier 1 Capital
  + Tier 2 Capital)(2)(3)
156,721 155,799 145,918 164,492 163,574 157,253 
Total Risk-Weighted Assets(4)
995,361 983,824 931,743 1,007,349 998,456 1,019,266 
   Credit Risk(2)
$697,914 $696,411 $664,139 $950,893 $950,208 $989,669 
   Market Risk55,853 47,931 29,167 56,456 48,248 29,597 
   Operational Risk241,594 239,482 238,437 — — — 
Common Equity Tier 1
  Capital ratio(5)(6)
7.0 %13.90 %13.97 %14.03 %13.74 %13.77 %12.82 %
Tier 1 Capital ratio(5)(6)
8.5 14.11 14.19 14.26 13.94 13.98 13.03 
Total Capital ratio(5)(6)
10.5 15.75 15.84 15.66 16.33 16.38 15.43 
In millions of dollars, except ratiosEffective Minimum RequirementSeptember 30, 2020June 30, 2020December 31, 2019
Quarterly Adjusted Average Total Assets(2)(7)(8)
$1,646,354 $1,643,724 $1,459,780 
Total Leverage Exposure(2)(7)(9)
2,125,670 2,105,285 1,951,630 
Tier 1 Leverage ratio(6)
5.0 %8.53 %8.49 %9.10 %
Supplementary Leverage ratio(6)
6.0 6.61 6.63 6.81 

(1)Citibank’s effective minimum risk-based capital requirements include the 2.5% Capital Conservation Buffer (all of which must be composed of Common Equity Tier 1 Capital).
(2)Citibank has elected to apply the modified transition provision related to the impact of the CECL accounting standard on regulatory capital, as provided by the U.S. banking agencies’ September 2020 final rule. Under the modified CECL transition provision, the changes in retained earnings (after-tax), deferred tax assets (DTAs) arising from temporary differences, and the allowance for credit losses upon the January 1, 2020 CECL adoption date have been deferred and will phase in to regulatory capital at 25% per year commencing January 1, 2022. For the ongoing impact of CECL, Citibank is allowed to adjust retained earnings and the allowance for credit losses in an amount equal to 25% of the change in the allowance for credit losses recognized through earnings (pre-tax) for each period between January 1, 2020 and December 31, 2021. The cumulative adjustments to retained earnings and the allowance for credit losses between January 1, 2020 and December 31, 2021 will also phase in to regulatory capital at 25% per year commencing January 1, 2022, along with the deferred impacts related to the January 1, 2020 CECL adoption date. Corresponding adjustments to average on-balance sheet assets are reflected in quarterly adjusted average total assets and Total Leverage Exposure. Additionally, the increase in DTAs arising from temporary differences upon the January 1, 2020 adoption date has been deducted from risk-weighted assets (RWA) and will phase in to RWA at 25% per year commencing January 1, 2022.
(3)Under the Advanced Approaches framework, 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 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.
(4)Commencing with the quarter ended June 30, 2020, loans originated under the Paycheck Protection Program receive a 0% risk weight under the Advanced Approaches and Standardized Approach.
(5)Citibank’s reportable Total Capital ratio was derived under the Basel III Advanced Approaches framework as of September 30, 2020 and June 30, 2020, and the Basel III Standardized Approach as of December 31, 2019, whereas Citibank’s reportable Common Equity Tier 1 Capital and Tier 1 Capital ratios were the lower derived under the Basel III Standardized Approach framework for all periods presented.
(6)Citibank must maintain minimum Common Equity Tier 1 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 minimum Supplementary Leverage ratio of 6.0% to be considered “well capitalized.” For additional information, see “Capital Resources—Current Regulatory Capital Standards—Prompt Corrective Action Framework” in Citigroup’s 2019 Annual Report on Form 10-K.
(7)Commencing with the quarter ended June 30, 2020, exposures pledged as collateral pursuant to a non-recourse loan that is provided as part of the Paycheck Protection Program Liquidity Facility are excluded from quarterly adjusted average total assets and Total Leverage Exposure.
(8)Tier 1 Leverage ratio denominator. Represents quarterly average total assets less amounts deducted from Tier 1 Capital.
(9)Supplementary Leverage ratio denominator. Citibank did not elect to temporarily exclude U.S. Treasuries and deposits at Federal Reserve Banks from Total
41


Leverage Exposure. For additional information, see “Capital Resources—Regulatory Capital Relief Resulting from the COVID-19 Pandemic—Temporary Supplementary Leverage Ratio Relief” in Citi’s Second Quarter of 2020 Form 10-Q.

As indicated in the table above, Citibank’s capital ratios at September 30, 2020 were in excess of the stated and effective minimum requirements under the U.S. Basel III rules. In addition, Citibank was also “well capitalized” as of September 30, 2020.

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 1 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, 2020. 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 ratioTotal Capital ratio
In basis points
Impact of
$100 million
change in
Common Equity
Tier 1 Capital
Impact of
$1 billion
change in risk-
weighted assets
Impact of
$100 million
change in
Tier 1 Capital
Impact of
$1 billion
change in risk-
weighted assets
Impact of
$100 million
change in
Total Capital
Impact of
$1 billion
change in risk-
weighted assets
Citigroup
Advanced Approaches0.81.00.81.10.81.3
Standardized Approach0.91.00.91.20.91.4
Citibank
Advanced Approaches1.01.41.01.41.01.6
Standardized Approach1.01.41.01.41.01.6
Tier 1 Leverage ratioSupplementary Leverage ratio
In basis points
Impact of
$100 million
change in
Tier 1 Capital
Impact of
$1 billion
change in quarterly adjusted average total assets
Impact of
$100 million
change in
Tier 1 Capital
Impact of
$1 billion
change in Total Leverage Exposure
Citigroup0.40.30.40.3
Citibank0.60.50.50.3

42


Citigroup Broker-Dealer Subsidiaries
At September 30, 2020, 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 $12.3 billion, which exceeded the minimum requirement by $8.4 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 capital of $22.8 billion at September 30, 2020, 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, 2020.

Total Loss-Absorbing Capacity (TLAC)
The table below details Citi’s eligible external TLAC and long-term debt (LTD) amounts and ratios, and each effective minimum TLAC and LTD ratio requirement, as well as the surplus amount in dollars in excess of each requirement.
As of September 30, 2020, Citi exceeded each of the minimum TLAC and LTD requirements, resulting in a $31 billion surplus above its binding TLAC requirement of LTD as a percentage of Advanced Approaches risk-weighted assets.
September 30, 2020
In billions of dollars, except ratiosExternal TLACLTD
Total eligible amount$305 $140 
% of Advanced Approaches risk-
weighted assets
25.2 %11.5 %
Effective minimum requirement(1)(2)
22.5 %9.0 %
Surplus amount$33 $31 
% of Total Leverage Exposure(3)
13.0 %5.9 %
Effective minimum requirement9.5 %4.5 %
Surplus amount$82 $34 

(1)    External TLAC includes Method 1 GSIB surcharge of 2.0%.
(2)    LTD includes Method 2 GSIB surcharge of 3.0%.
(3)    Commencing with the second quarter of 2020, Citigroup’s Total Leverage Exposure temporarily excludes U.S. Treasuries and deposits at Federal Reserve Banks.

For additional information on Citi’s TLAC-related requirements, see “Liquidity Risk—Long-Term Debt—Total Loss-Absorbing Capacity (TLAC)” and “Risk Factors—Compliance, Conduct and Legal Risks” in Citi’s 2019 Annual Report on Form 10-K.


43


Capital Resources (Full Adoption of CECL, and Excluding Temporary Supplementary Leverage Ratio Relief for Citigroup)
The following tables set forth Citigroup’s and Citibank’s capital components and ratios reflecting the full impact of CECL, and excluding temporary Supplementary Leverage ratio relief for Citigroup, as of September 30, 2020:
CitigroupCitibank
Effective Minimum RequirementAdvanced ApproachesStandardized ApproachEffective Minimum RequirementAdvanced ApproachesStandardized Approach
Common Equity Tier 1 Capital ratio10.0 %11.32 %11.66 %7.0 %13.42 %13.26 %
Tier 1 Capital ratio11.5 12.82 13.21 8.5 13.63 13.47 
Total Capital ratio13.5 15.24 16.44 10.5 15.27 15.87 
Effective Minimum RequirementCitigroupEffective Minimum RequirementCitibank
Tier 1 Leverage ratio4.0 %6.97%5.0 %8.24%
Supplementary Leverage ratio(1)
5.0 5.60%6.0 6.37%

(1)Citigroup’s Supplementary Leverage ratio, as presented in the table above, reflects the full impact of CECL as well as the inclusion of U.S. Treasuries and deposits at Federal Reserve Banks in Total Leverage Exposure.

Stress Capital Buffer
In August 2020, the Federal Reserve Board finalized and announced Citi’s Stress Capital Buffer (SCB) requirement of 2.5%. Accordingly, beginning October 1, 2020, Citigroup is required to maintain a 10.0% effective minimum Common Equity Tier 1 Capital ratio under the Standardized Approach, which is unchanged from Citigroup’s previous effective minimum Common Equity Tier 1 Capital ratio under the Standardized Approach inclusive of the 2.5% Capital Conservation Buffer.
Citigroup’s SCB is based on the Federal Reserve Board’s March 2020 SCB final rule, which integrates the annual stress testing requirements with ongoing regulatory capital requirements. For Citigroup, the SCB rule replaces the fixed 2.5% Capital Conservation Buffer under the Standardized Approach, and equals the peak-to-trough Common Equity Tier 1 Capital ratio decline under the Supervisory Severely Adverse scenario used in the Comprehensive Capital Analysis and Review (CCAR) and Dodd-Frank Act Stress Testing (DFAST), plus four quarters of planned common stock dividends, subject to a floor of 2.5%. The fixed 2.5% Capital Conservation Buffer will continue to apply under the Advanced Approaches framework.
SCB-based minimum capital requirements will be updated at least once per year as part of the CCAR process. Similar to the current Capital Conservation Buffer, a breach of the SCB will result in graduated limitations on capital distributions. For additional information regarding the SCB final rule, see “Capital Resources—Regulatory Capital Standards Developments—Stress Capital Buffer” in Citi’s First Quarter 2020 Form 10-Q. For additional information regarding CCAR and DFAST, see “Capital Resources—Current Regulatory Capital Standards—Stress Testing Component of Capital Planning” in Citi’s 2019 Annual Report on Form 10-K.
The SCB applies to Citigroup only. The regulatory capital framework applicable to Citibank, including the Capital Conservation Buffer, is unchanged by Citigroup’s SCB.


Capital Plan Resubmission and Related Limitations on Capital Distributions
In June 2020, the Federal Reserve Board determined that changes in financial markets and macroeconomic outlooks related to the COVID-19 pandemic could have a material effect on the risk profile and financial condition of each firm subject to its capital plan rule and, therefore, require updated capital plans. Citigroup resubmitted its capital plan on November 2, 2020.
In September 2020, the Federal Reserve Board announced that it was extending for an additional quarter several measures that were previously announced for the third quarter of 2020 to ensure that large banks maintain a high level of capital resilience. Through the end of the fourth quarter of 2020, share repurchases continue to be prohibited and dividends continue to be capped and tied to a formula based on recent income. These limitations on capital distributions may be extended by the Federal Reserve Board. For additional information on the Federal Reserve Board’s limitations on capital distributions, see “Capital Resources—Capital Plan Resubmission and Related Limitations on Capital Distributions” in Citi’s Second Quarter 2020 Form 10-Q.
On June 29, 2020, Citi announced that its planned capital actions include common dividends. Citi declared common dividends of $0.51 per share for the fourth quarter of 2020 on October 22, 2020, consistent with the Federal Reserve Board’s income-based formula for temporary limitations on common dividends announced in September 2020.
The Federal Reserve Board may, but is not required to, recalculate each firm’s SCB as a result of the capital plan resubmission. The Federal Reserve Board has stated that it will release results of the second round of stress tests by December 31, 2020.


44


Regulatory Capital Standards Developments

TLAC Holdings
In October 2020, the U.S. banking agencies released a final rule that creates a new regulatory capital deduction applicable to Advanced Approaches banking organizations for certain investments in covered debt instruments issued by GSIBs. The final rule is substantially consistent with an April 2019 proposal, and is intended to reduce interconnectedness and systemic risk by creating an incentive for Advanced Approaches banking organizations to limit their exposure to GSIBs.
Under the U.S. Basel III rules, non-significant investments in the capital of unconsolidated financial institutions are subject to deduction from regulatory capital using the corresponding deduction approach if, in the aggregate, they exceed 10% of the banking organization’s Common Equity Tier 1 Capital. Non-significant investments in the capital of unconsolidated financial institutions that are not deducted from regulatory capital are risk weighted in the usual manner.
Under the final rule, an investment in a “covered debt instrument” will be treated as an investment in a Tier 2 Capital instrument and, therefore, will be subject to deduction from the Advanced Approaches banking organization’s own Tier 2 Capital in accordance with the existing rules for non-significant investments in unconsolidated financial institutions. Covered debt instruments include unsecured debt instruments that are “eligible debt securities” for purposes of the TLAC rule, or that are pari passu or subordinated to such securities, in addition to certain unsecured debt instruments issued by foreign GSIBs.
To support a deep and liquid market for covered debt instruments, the rule provides an exception from the approach described above for covered debt instruments held for market-making activities for 30 days or less (or longer, for synthetic exposures only), if the aggregate amount of such debt instruments does not exceed 5% of the banking organization’s Common Equity Tier 1 Capital.
Additionally, the final rule requires banking organizations to deduct from Tier 2 Capital investments in their own covered debt instruments.
The final rule will become effective for Citigroup and Citibank on April 1, 2021. Citi estimates that the final rule will not materially impact Citigroup or Citibank’s regulatory capital upon adoption.




45


Tangible Common Equity, Book Value Per Share, Tangible Book Value Per Share and Returns on Equity
Tangible common equity (TCE), as defined by Citi, represents common stockholders’ equity less goodwill and identifiable intangible assets (other than MSRs). Other companies may calculate TCE in a different manner. TCE, tangible book value (TBV) per share and returns on average TCE are non-GAAP financial measures.








In millions of dollars or shares, except per share amountsSeptember 30,
2020
December 31,
2019
Total Citigroup stockholders’ equity$193,876 $193,242 
Less: Preferred stock17,980 17,980 
Common stockholders’ equity$175,896 $175,262 
Less:
  Goodwill21,624 22,126 
  Identifiable intangible assets (other than MSRs)4,470 4,327 
Tangible common equity (TCE)$149,802 $148,809 
Common shares outstanding (CSO)2,082.0 2,114.1 
Book value per share (common equity/CSO)$84.48 $82.90 
Tangible book value per share (TCE/CSO)71.95 70.39 

Three Months Ended September 30,Nine Months Ended September 30,
In millions of dollars2020201920202019
Net income available to common shareholders$2,946 $4,659 $6,240 $13,610 
Average common stockholders’ equity174,880 177,886 174,737 177,876 
Average TCE148,970 151,748 148,911 151,541 
Return on average common stockholders’ equity6.7 %10.4 %4.8 %10.2 %
Return on average TCE (RoTCE)(1)
7.9 12.2 5.6 12.0 

(1)RoTCE represents annualized net income available to common shareholders as a percentage of average TCE.































46



Managing Global Risk Table of Contents
MANAGING GLOBAL RISK
CREDIT RISK(1)
Consumer Credit
Corporate Credit
Additional Consumer and Corporate Credit Details
 Loans Outstanding
 Details of Credit Loss Experience
     Allowance for Credit Losses on Loans62
     Non-Accrual Loans and Assets and Renegotiated Loans
LIQUIDITY RISK
High-Quality Liquid Assets (HQLA)
Liquidity Coverage Ratio (LCR)
Loans68
Deposits68 
Long-Term Debt69 
Secured Funding Transactions and Short-Term Borrowings71 
Credit Ratings72 
MARKET RISK(1)
Market Risk of Non-Trading Portfolios
Market Risk of Trading Portfolios
OPERATIONAL RISK
Erroneous Revlon-Related Payment
STRATEGIC RISK
U.K.’s Future Relationship with EU
LIBOR Transition Risk
Country Risk
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 require d by the rules of the Federal Reserve Board, on Citi’s Investor Relations website.

47


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 identify, monitor, evaluate and manage the principal risks it assumes in conducting its activities. Specifically, the activities that Citi engages in, and the risks those activities generate, must be consistent with Citi’s mission and value proposition, the key principles that guide it and Citi's risk appetite.
For more information on Citi’s management of global risk, including its three lines of defense, see “Managing Global Risk” in Citi’s 2019 Annual Report on 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 2019 Annual Report on Form 10-K.


CONSUMER CREDIT
The following table shows Citi’s quarterly end-of-period consumer loans:(1)
In billions of dollars3Q’194Q’191Q’202Q’203Q’20
Retail banking:
Mortgages$83.4 $85.5 $83.6 $86.0 $87.5 
Personal, small business and other37.2 39.3 36.6 37.6 38.3 
Total retail banking$120.6 $124.8 $120.2 $123.6 $125.8 
Cards:
Citi-branded cards$115.8 $122.2 $110.2 $103.6 $102.2 
Citi retail services50.0 52.9 48.9 45.4 44.4 
Total cards$165.8 $175.1 $159.1 $149.0 $146.6 
Total GCB
$286.4 $299.9 $279.3 $272.6 $272.4 
GCB regional distribution:
North America66 %66 %67 %66 %66 %
Latin America5 
Asia(2)
28 28 28 29 29 
Total GCB
100 %100 %100 %100 %100 %
Corporate/Other(3)
$11.0 $9.6 $9.1 $8.5 $7.6 
Total consumer loans$297.4 $309.5 $288.4 $281.1 $280.0 

(1)End-of-period loans include interest and fees on credit cards.
(2)Asia includes loans and leases in certain EMEA countries for all periods presented.
(3)Primarily consists of legacy assets, principally North America consumer mortgages.

For information on changes to Citi’s end-of-period consumer loans, see “Liquidity Risk—Loans” below.



48


Overall Consumer Credit Trends
GCB did not experience a significant net credit loss impact from the COVID-19 pandemic during the third quarter of 2020, similar to the prior quarter. Net credit loss rates were positively impacted by the relief programs Citi implemented since the beginning of the pandemic, combined with the benefit of reduced customer spending and significant government stimulus and assistance, as well as other banks’ consumer relief programs. The 90+ days past due delinquency rates broadly declined sequentially for the same reasons. In addition, as discussed above, 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 would not be reported as 90+ days past due or written off for the duration of the programs (which have various durations, and certain of which may be renewed by the customer).
Citi continues to expect that 90+ days past due delinquency and net credit loss rates in North America GCB, Latin America GCB and Asia GCB will be adversely impacted by the evolving macroeconomic and market conditions. These include the severity and duration of the impact from the pandemic, as these government stimulus and consumer relief programs expire and when the loans are no longer reported in the same delinquency bucket as they were when the relief programs began.
For additional information about trends, uncertainties and risks related to the pandemic, see “COVID-19 Pandemic Overview” and “Risk Factors” above.
The following charts show the quarterly trends in delinquency rates (90+ days past due (90+ DPD) rate) and the net credit loss (NCL) rates across both retail banking and cards for total GCB and by region.

Global Consumer Banking
c-20200930_g3.jpg

c-20200930_g4.jpg

North America GCB
c-20200930_g3.jpg
c-20200930_g5.jpg

North America GCB provides mortgage, home equity, small business and personal loans through Citi’s retail banking network and card products through Citi-branded cards and Citi retail services businesses. The retail bank is concentrated in six major metropolitan cities in the United States (for additional information on the U.S. retail bank, see “North America GCB” above).
As of September 30, 2020, approximately 70% of North America GCB consumer loans consisted of Citi-branded and Citi retail services cards, which generally drives the overall credit performance of North America GCB (for additional information on North America GCB’s cards portfolios, including delinquency and net credit loss rates, see “Credit Card Trends” below).
As shown in the chart above, the net credit loss and 90+ days past due delinquency rates in North America GCB decreased quarter-over-quarter, driven by the impact of the relief programs described above, unemployment benefits and government stimulus.
Year-over-year, the net credit loss and 90+ days past due delinquency rates decreased, also driven by the impact of the relief programs, unemployment benefits and government stimulus.

Latin America GCB
c-20200930_g3.jpg
c-20200930_g6.jpg
Latin America GCB operates in Mexico through
Citibanamex, one of Mexico’s largest banks, and provides
credit cards, consumer mortgages and small business and personal loans. Latin America GCB serves a more mass-market segment in Mexico and focuses on developing multi-product relationships with customers.
49


The pandemic adversely affected the economy in Mexico, and customers did not benefit from a similar level of government stimulus as other regions. As shown in the chart above, the 90+ days past due delinquency rate in Latin America GCB decreased quarter-over-quarter, as customers continued to participate in Citi’s relief programs, while the net credit loss rate increased, driven by losses related to customers ineligible for the relief programs.
Year-over-year, the net credit loss rate and 90+ days past due delinquency rate increased, primarily due to the pandemic impact described above and lower loan balances.

Asia(1) GCB
c-20200930_g3.jpg
c-20200930_g7.jpg

(1)Asia includes GCB activities in certain EMEA countries for all periods presented.

Asia GCB operates in 17 countries in Asia and EMEA
and provides credit cards, consumer mortgages and small business and personal loans.
As shown in the chart above, quarter-over-quarter, the net credit loss rate in Asia GCB decreased, driven by an increase in average loans, mainly in the retail portfolios. The 90+ days past due delinquency rate modestly increased, primarily driven by the cards portfolio.
Year-over-year, the net credit loss rate and the 90+ days past due delinquency rate increased due to the pandemic-related macroeconomic impact.
The performance of Asia GCB’s portfolios reflects the strong credit profiles in the region’s target customer segments. Regulatory changes in many markets in Asia over the past few years have also improved credit quality.
For additional information on cost of credit, loan delinquency and other information for Citi’s consumer loan portfolios, see each respective business’s results of operations above and Note 13 to the Consolidated Financial Statements.

Credit Card Trends
The following charts show the quarterly trends in delinquencies and net credit losses for total GCB cards, North America Citi-branded cards and Citi retail services portfolios, as well as for Citi’s Latin America and Asia Citi-branded cards portfolios.

Global Cards
c-20200930_g3.jpg
c-20200930_g8.jpg


North America Citi-Branded Cards
c-20200930_g3.jpg
c-20200930_g9.jpg

North America GCB’s Citi-branded cards portfolio issues proprietary and co-branded cards.
As shown in the chart above, the net credit loss rate and 90+ days past due delinquency rate in North America Citi-branded cards decreased quarter-over-quarter, driven by the impact of the relief programs described above, unemployment benefits and government stimulus.
The net credit loss rate increased year-over-year, primarily due to lower average loans, while the 90+ days past due delinquency rate also decreased due to the impact of the relief programs, unemployment benefits and government stimulus.

North America Citi Retail Services
c-20200930_g3.jpg
c-20200930_g10.jpg

Citi retail services partners directly with more than 20 retailers and dealers to offer private label and co-branded cards. Citi retail services’ target market focuses on select industry segments such as home improvement, specialty retail, consumer electronics and fuel.
50


Citi 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 net credit loss rate and 90+ days past due delinquency rate decreased quarter-over-quarter, driven by the impact of the relief programs, unemployment benefits and government stimulus.
The net credit loss rate and 90+ days past due delinquency rate decreased year-over-year, also driven by the impact of the relief programs, unemployment benefits and government stimulus.

Latin America Citi-Branded Cards
c-20200930_g3.jpg
c-20200930_g11.jpg

Latin America GCB issues proprietary and co-branded cards. As shown in the chart above, the 90+ days past due delinquency rate in Latin America GCB decreased quarter-over-quarter, driven by customer enrollment in the consumer relief programs, while the net credit loss rate increased, driven by customers that were ineligible for the relief programs.
Year-over-year the net credit loss rate increased, primarily due to the pandemic impact described above and the lower loan balances, while the 90+ days past due delinquency rate decreased due to the implementation of Citi’s consumer relief programs.

Asia Citi-Branded Cards(1)
c-20200930_g3.jpg
c-20200930_g12.jpg

(1)Asia includes loans and leases in certain EMEA countries for all periods presented.

Asia GCB issues proprietary and co-branded cards. As set forth in the chart above, quarter-over-quarter, the net credit loss rate remained broadly stable, and the 90+ days past due delinquency rate increased, primarily due to the impact of the macroeconomic slowdown related to the pandemic, including the impact of customers who have exited the relief programs.
Year-over-year, the net credit loss rate and the 90+ days past due delinquency rate increased due to the pandemic-related macroeconomic impact.
For additional information on cost of credit, delinquency and other information for Citi’s cards portfolios, see each respective business’s results of operations above and Note 13 to the Consolidated Financial Statements.

North America Cards FICO Distribution
The following tables show the current FICO score distributions for Citi’s North America cards 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.

Citi-Branded Cards
FICO distribution(1)
September 30, 2020June 30, 2020September 30, 2019
  > 76043 %41 %41 %
   680–76041 41 41 
  < 68016 18 18 
Total100 %100 %100 %

Citi Retail Services
FICO distribution(1)
September 30, 2020June 30, 2020September 30, 2019
   > 76025 %24 %24 %
   680–76044 43 43 
  < 68031 33 33 
Total100 %100 %100 %

(1)    The FICO bands in the tables are consistent with general industry peer presentations.

The FICO distribution of both cards portfolios remained broadly stable, compared to the prior quarter and prior year, demonstrating strong underlying credit quality, as well as a benefit from the impact of the government stimulus and relief programs described above and lower credit utilization due to reduced customer spending. For additional information on FICO scores, see Note 13 to the Consolidated Financial Statements.




51


Additional Consumer Credit Details

Consumer Loan Delinquencies Amounts and Ratios(1)
 
EOP
loans(2)
90+ days past due(3)
30–89 days past due(3)
In millions of dollars,
except EOP loan amounts in billions
September 30,
2020
September 30,
2020
June 30,
2020
September 30,
2019
September 30,
2020
June 30,
2020
September 30,
2019
Global Consumer Banking(4)(5)
Total$272.4 $1,976 $2,466 $2,470 $2,398 $2,503 $2,956 
Ratio0.73 %0.91 %0.86 %0.88 %0.92 %1.03 %
Retail banking
Total$125.8 $497 $497 $392 $786 $918 $803 
Ratio0.40 %0.40 %0.33 %0.63 %0.75 %0.67 %
North America53.1 211 182 125 378 440 313 
Ratio0.40 %0.35 %0.26 %0.72 %0.84 %0.65 %
Latin America9.2 105 121 97 136 151 191 
Ratio1.14 %1.34 %0.87 %1.48 %1.68 %1.71 %
Asia(6)
63.5 181 194 170 272 327 299 
Ratio0.29 %0.32 %0.28 %0.43 %0.53 %0.50 %
Cards
Total$146.6 $1,479 $1,969 $2,078 $1,612 $1,585 $2,153 
Ratio1.01 %1.32 %1.25 %1.10 %1.06 %1.30 %
North America—Citi-branded
81.1 574 784 807 624 594 800 
Ratio0.71 %0.95 %0.88 %0.77 %0.72 %0.87 %
North America—Citi retail services
44.4 557 811 923 610 611 943 
Ratio1.25 %1.79 %1.85 %1.37 %1.35 %1.89 %
Latin America4.3 106 160 152 89 111 161 
Ratio2.47 %3.81 %2.76 %2.07 %2.64 %2.93 %
Asia(6)
16.8 242 214 196 289 269 249 
Ratio1.44 %1.27 %1.04 %1.72 %1.60 %1.32 %
Corporate/Other—Consumer(7)
Total$7.6 $278 $295 $293 $198 $261 $288 
Ratio3.86 %3.60 %2.82 %2.75 %3.18 %2.77 %
Total Citigroup$280.0 $2,254 $2,761 $2,763 $2,596 $2,764 $3,244 
Ratio0.81 %0.99 %0.93 %0.93 %0.99 %1.10 %
(1)As discussed above, 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 by the customer).
(2)End-of-period (EOP) loans include interest and fees on credit cards.
(3)The ratios of 90+ days past due and 30–89 days past due are calculated based on EOP loans, net of unearned income.
(4)The 90+ days past due balances for North America—Citi-branded and North America—Citi retail services are generally still accruing interest. Citigroup’s policy is generally to accrue interest on credit card loans until 180 days past due, unless notification of bankruptcy filing has been received earlier.
(5)The 90+ days past due and 30–89 days past due and related ratios for North America GCB exclude U.S. mortgage loans that are guaranteed by U.S. government-sponsored agencies since the potential loss predominantly resides with the U.S. government-sponsored agencies. The amounts excluded for loans 90+ days past due and (EOP loans) were $148 million ($0.6 billion), $130 million ($0.5 billion) and $150 million ($0.6 billion) as of September 30, 2020, June 30, 2020 and September 30, 2019, respectively. The amounts excluded for loans 30–89 days past due and (EOP loans) were $88 million ($0.6 billion), $86 million ($0.5 billion) and $78 million ($0.6 billion) as of September 30, 2020, June 30, 2020 and September 30, 2019, respectively.
(6)Asia includes delinquencies and loans in certain EMEA countries for all periods presented.
(7)The loans 90+ days past due and related ratios exclude U.S. mortgage loans that are guaranteed by U.S. government-sponsored agencies since the potential loss predominantly resides with the U.S. agencies. The amounts excluded for 90+ days past due and (EOP loans) for each period were $172 million ($0.5 billion), $173 million ($0.4 billion) and $249 million ($0.6 billion) as of September 30, 2020, June 30, 2020 and September 30, 2019, respectively. The amounts excluded for loans 30–89 days past due and (EOP loans) for each period were $66 million ($0.5 billion), $57 million ($0.4 billion) and $110 million ($0.6 billion) as of September 30, 2020, June 30, 2020 and September 30, 2019, respectively.
52


Consumer Loan Net Credit Losses and Ratios
 
Average
loans(1)
Net credit losses(2)
In millions of dollars, except average loan amounts in billions3Q203Q202Q203Q19
Global Consumer Banking  
Total$272.4 $1,598 $1,887 $1,802 
Ratio2.33 %2.80 %2.52 %
Retail banking
Total$125.6 $190 $204 $225 
Ratio0.60 %0.67 %0.75 %
North America53.4 31 33 40 
Ratio0.23 %0.25 %0.33 %
Latin America9.3 90 94 119 
Ratio3.85 %4.15 %4.14 %
Asia(3)
62.9 69 77 66 
Ratio0.44 %0.51 %0.44 %
Cards
Total$146.8 $1,408 $1,683 $1,577 
Ratio3.82 %4.52 %3.80 %
North America—Citi-branded
81.2 647 795 712 
Ratio3.17 %3.87 %3.12 %
North America—Citi retail services
44.5 504 656 598 
Ratio4.51 %5.71 %4.77 %
Latin America4.3 138 115 156 
Ratio12.77 %10.76 %11.05 %
Asia(3)
16.8 119 117 111 
Ratio2.82 %2.83 %2.34 %
Corporate/Other—Consumer
Total$8.2 $(4)$(5)$
Ratio(0.19)%0.23 %0.04 %
Total Citigroup$280.6 $1,594 $1,882 $1,803 
Ratio2.26 %2.70 %2.42 %
(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 includes NCLs and average loans in certain EMEA countries for all periods presented.



























53


CORPORATE CREDIT

Overall Corporate Credit Trends
For information about Citi’s corporate credit trends, uncertainties and risks related to the COVID-19 pandemic, see “COVID-19 Pandemic Overview” and “Risk Factors” above. For information on Citi’s ACL for its corporate portfolios, see “Significant Accounting Policies and Significant Estimates” below and Notes 1 and 14 to the Consolidated Financial Statements. For additional information on Citi’s corporate loan portfolios, see Note 13 to the Consolidated Financial Statements.

The following table details Citi’s corporate credit portfolio within ICG (excluding certain loans in the private bank, which are managed on a delinquency basis), and before consideration of collateral or hedges, by remaining tenor for the periods indicated:

 September 30, 2020June 30, 2020December 31, 2019
In billions of dollarsDue
within
1 year
Greater
than 1 year
but within
5 years
Greater
than
5 years
Total
exposure
Due
within
1 year
Greater
than 1 year
but within
5 years
Greater
than
5 years
Total
exposure
Due
within
1 year
Greater
than 1 year
but within
5 years
Greater
than
5 years
Total
exposure
Direct outstandings (on-balance sheet)(1)
$175 $145 $24 $344 $184 $156 $24 $364 $184 $142 $25 $351 
Unfunded lending commitments (off-balance sheet)(2)
154 264 12 430 157 250 13 420 161 266 17 444 
Total exposure$329 $409 $36 $774 $341 $406 $37 $784 $345 $408 $42 $795 


(1)    Includes drawn loans, overdrafts, bankers’ acceptances and leases.
(2)    Includes unused commitments to lend, letters of credit and financial guarantees.

Portfolio Mix—Geography and Counterparty
Citi’s corporate credit portfolio is diverse across geography and counterparty. The following table shows the percentage of this portfolio by region (excluding the delinquency-managed private bank portfolio) based on Citi’s internal management geography:
September 30,
2020
June 30,
2020
December 31,
2019
North America57 %58 %57 %
EMEA25 24 24 
Asia12 12 12 
Latin America6 
Total100 %100 %100 %

The maintenance of accurate and consistent risk ratings across the corporate credit portfolio facilitates the comparison of credit exposure across all lines of business, geographic regions and products. Counterparty risk ratings reflect an estimated probability of default for a counterparty and are derived by leveraging validated statistical models, scorecard models and external agency ratings (under defined circumstances), 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.
Citigroup also has incorporated environmental factors like climate risk assessment and reporting criteria for certain obligors, as necessary. Factors evaluated include consideration of climate risk to an obligor’s business and physical assets and, when relevant, consideration of cost-effective options to reduce greenhouse gas emissions.
54


The following table presents the corporate credit portfolio (excluding the delinquency-managed private bank portfolio) by facility risk rating as a percentage of the total corporate credit portfolio:
 Total exposure
 September 30,
2020
June 30,
2020
December 31,
2019
AAA/AA/A48 %49 %50 %
BBB31 31 33 
BB/B17 16 15 
CCC or below4 
Total100 %100 %100 %

Note: Total exposure includes direct outstandings and unfunded lending commitments.

In addition to the counterparty 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 or doubtful.
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. This includes but is not limited to exposures in those sectors significantly impacted by the pandemic (including energy and energy-related, aviation, consumer retail, commercial real estate and autos).
Citigroup believes the corporate credit portfolio to be appropriately rated and classified as of September 30, 2020. During the course of the third quarter of 2020, and since the onset of the COVID-19 pandemic, Citigroup 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 exposures are downgraded, the probability of default increases. Downgrades of exposures tend to result in a higher provision for credit losses. In addition, downgrades may result in the purchase of additional credit derivatives or other risk mitigants to hedge the incremental credit risk, or may result in seeking to reduce exposure to an obligor or an industry sector. Citigroup will continue to review exposures to ensure the appropriate probability of default is incorporated into all risk assessments.
For additional information on Citi’s corporate credit portfolio, see Note 13 to the Consolidated Financial Statements.


Portfolio Mix—Industry
Citi’s corporate credit portfolio is diversified by industry. The following details the allocation of Citi’s total corporate credit portfolio by industry (excluding the delinquency-managed private bank portfolio):
 Total exposure
 September 30,
2020
June 30,
2020
December 31,
2019
Transportation and industrials19 %19 %19 %
Private bank14 13 13 
Consumer retail11 11 10 
Technology, media and telecom10 10 11 
Power, chemicals, metals and mining8 
Real estate8 
Banks and finance companies7 
Energy and commodities7 
Health4 
Public sector3 
Insurance3 
Asset managers and funds3 
Financial markets infrastructure2 
Securities firms — — 
Other industries1 
Total100 %100 %100 %
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The following table details Citi’s corporate credit portfolio by industry as of September 30, 2020:
Non-investment gradeSelected metrics
In millions of dollarsTotal credit exposure
Funded(1)
Unfunded(1)
Investment gradeNon-criticizedCriticized performing
Criticized non-performing(2)
30 days or more past due and accruing(3)
Net charge-offs (recoveries)(4)
Credit derivative hedges(5)
Transportation and industrials$146,935 $62,879 $84,056 $105,781 $17,286 $22,348 $1,520 $155 $187 $(8,722)
   Autos(6)
51,039 24,191 26,848 41,534 4,828 4,424 253 32 45 (3,477)
   Transportation28,824 15,720 13,104 16,257 3,069 8,374 1,124 21 98 (1,241)
  Industrials67,072 22,968 44,104 47,990 9,389 9,550 143 102 44 (4,004)
Private bank107,351 70,030 37,321 102,369 2,302 2,333 347 806 54 (1,080)
Consumer retail81,278 34,998 46,280 59,143 10,928 10,921 286 139 49 (5,138)
Technology, media and telecom79,659 31,136 48,523 59,283 14,749 5,368 259 115 48 (7,202)
Power, chemicals, metals and mining64,767 20,947 43,820 49,304 10,996 4,307 160 61 52 (5,283)
  Power28,408 6,665 21,743 24,539 2,907 864 98 43 39 (2,577)
  Chemicals22,883 8,124 14,759 16,981 4,037 1,836 29 18 (2,067)
  Metals and mining13,476 6,158 7,318 7,784 4,052 1,607 33 — (639)
Real estate62,489 42,197 20,292 51,259 5,814 5,331 85 268 6 (551)
Banks and finance companies51,920 30,088 21,832 42,119 4,791 4,946 64 1 78 (750)
Energy and commodities(7)
51,035 16,244 34,791 34,560 6,888 8,484 1,103 90 231 (4,083)
Health31,637 8,017 23,620 25,417 4,282 1,695 243 29 15 (1,864)
Public sector26,267 13,723 12,544 21,726 1,844 2,679 18 22 8 (1,040)
Insurance25,990 2,208 23,782 25,110 642 238  45 1 (2,611)
Asset managers and funds20,695 4,881 15,814 19,323 1,160 212  9 (1)(85)
Financial markets infrastructure12,440 401 12,039 12,422 18     (3)
Securities firms1,117 380 737 844 199 64 10   (7)
Other industries10,477 5,561 4,916 6,078 3,111 1,195 93 57 41 (11)
Total$774,057 $343,690 $430,367 $614,738 $85,010 $70,121 $4,188 $1,797 $769 $(38,430)

(1)    Excludes $43,196 million and $6,314 million of funded and unfunded exposure at September 30, 2020, respectively, primarily related to the delinquency-managed credit portfolio of private bank.
(2)    Includes non-accrual loan exposures and criticized unfunded exposures.
(3)    Excludes $457 million of past due loans primarily related to delinquency-managed credit portfolio of private bank.
(4)    Net charge-offs (recoveries) are for the nine months ended September 30, 2020 and exclude delinquency-managed private bank charge-offs of $7 million.
(5)    Represents the amount of purchased credit protection in the form of derivatives to economically hedge funded and unfunded exposures. Of the $38.4 billion of purchased credit protection, $36.4 billion represents the total notional of purchased credit derivatives on individual reference entities. The remaining $2.0 billion represents the first loss tranche of portfolios of purchased credit derivatives with a total notional of $16.1 billion, where the protection seller absorbs the first loss on the referenced loan portfolios.
(6)    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 $20 billion ($9.9 billion in funded, with more than 95% rated investment grade) as of September 30, 2020.
(7)    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 industrial sector (e.g., off-shore drilling entities) included in the table above. As of September 30, 2020, Citi’s total exposure to these energy-related entities remained largely consistent with December 31, 2019, at approximately $5.5 billion, of which approximately $3.2 billion consisted of direct outstanding funded loans.

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Exposure to Commercial Real Estate
As of September 30, 2020, Citi’s total corporate credit exposure to commercial real estate (CRE) within ICG was $59 billion, with $42 billion consisting of direct outstanding funded loans (mainly included in the real estate and private bank categories in the above table), or 6% of Citi’s total outstanding loans. In addition, as of September 30, 2020, more than 70% of ICG’s total corporate CRE exposure was to borrowers in the United States. Also as of September 30, 2020, approximately 72% of ICG’s total corporate CRE exposure was rated investment grade.
As of September 30, 2020, the ACLL was 1.8% of funded CRE exposure, including 4.3% of funded non-investment grade exposure.

Of the total CRE exposure:

$18 billion of the exposure ($12 billion of direct outstanding funded loans) relates to Community Reinvestment Act-related lending provided pursuant to Citi’s regulatory requirements to meet the credit needs of borrowers in low and moderate income neighborhoods.
$16 billion of the exposure ($13 billion of direct outstanding funded loans) relates to exposure secured by mortgages on underlying properties or in well-rated securitization exposures.
$14 billion of the exposure ($6 billion of direct outstanding funded loans) relates to unsecured loans to large REITs, with nearly 80% of the exposure rated investment grade.
$11 billion of exposure ($11 billion of direct outstanding funded loans) relates to CRE exposure in the private bank of which 100% is secured by mortgages. In addition, 43% of the exposure is also full recourse to the client. As of September 30, 2020, 78% of the exposure was rated investment grade.

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The following table details Citi’s corporate credit portfolio by industry as of December 31, 2019:


Non-investment gradeSelected metrics
In millions of dollarsTotal credit exposure
Funded(1)
Unfunded(1)
Investment gradeNon-criticizedCriticized performing
Criticized non-performing(2)
30 days or more past due and accruing(3)
Net charge-offs (recoveries)(4)
Credit derivative hedges(5)
Transportation and industrials$146,643 $59,726 $86,917 $120,777 $19,433 $5,725 $706 $161 $67 $(7,134)
   Autos(6)
48,604 21,564 27,040 43,570 3,582 1,311 140 (2,982)
   Transportation29,984 14,550 15,434 23,021 4,886 1,652 425 21 21 (725)
   Industrials68,055 23,612 44,443 54,186 10,965 2,762 141 132 41 (3,427)
Private bank(1)
102,463 68,798 33,665 100,017 2,244 171 31 1,094 36 (1,080)
Consumer retail81,338 36,117 45,221 62,993 15,131 2,773 441 209 38 (4,105)
Technology, media and telecom83,199 31,333 51,866 63,845 15,846 3,305 203 81 14 (6,181)
Power, chemicals, metals and mining73,961 24,377 49,584 58,670 11,997 2,963 331 50 24 (4,763)
  Power34,349 7,683 26,666 29,317 4,051 679 302 37 19 (2,111)
  Chemicals23,721 9,152 14,569 18,790 3,905 1,014 12 12 (2,079)
  Metals and mining15,891 7,542 8,349 10,563 4,041 1,270 17 (573)
Real estate55,518 38,058 17,460 49,461 5,495 525 37 97 (3)(573)
Banks and finance companies52,036 32,571 19,465 43,663 4,661 3,345 39 15 12 (755)
Energy and commodities(7)
53,317 17,428 35,889 42,996 5,780 3,627 914 51 99 (2,808)
Health35,008 8,790 26,218 27,791 5,932 1,180 105 25 14 (1,588)
Public sector27,194 14,226 12,968 23,294 1,637 2,558 33 107 (944)
Insurance24,305 1,658 22,647 23,370 866 69 — (2,218)
Asset managers and funds24,763 6,942 17,821 22,357 2,276 130 — 31 (32)
Financial markets infrastructure16,838 22 16,816 16,838 — — — — — (2)
Securities firms1,151 423 728 801 304 38 — 13 — 
Other industries16,842 9,718 7,214 8,299 7,383 1,080 80 48 42 65 
Total$794,576 $350,187 $444,479 $665,172 $98,985 $27,489 $2,928 $1,946 $389 $(32,118)

(1)    Excludes $39,748 million and $3,426 million of funded and unfunded exposure at December 31, 2019, respectively, primarily related to delinquency-managed credit portfolio of private bank.
(2)    Includes non-accrual loan exposures and criticized unfunded exposures.
(3)    Excludes $434 million of past due loans primarily related to delinquency-managed credit portfolio of the private bank.
(4)    Net charge-offs (recoveries) are for the year ended December 31, 2019 and exclude delinquency-managed private bank charge-offs of $6 million.
(5)    Represents the amount of purchased credit protection in the form of derivatives to economically hedge funded and unfunded exposures. Of the $32.1 billion of purchased credit protection, $30.5 billion represents the total notional of purchased credit derivatives on individual reference entities. The remaining $1.6 billion represents the first loss tranche of portfolios of purchased credit derivatives with a total notional of $13.8 billion, where the protection seller absorbs the first loss on the referenced loan portfolios.
(6)    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 billion ($7.7 billion in funded) as of December 31, 2019, of which more than 99% were investment grade at December 31, 2019.
(7)    In addition to this exposure, Citi has energy-related exposure within the public sector (e.g., energy-related state-owned entities) and transportation and industrial sector (e.g., off-shore drilling entities) included in the table above. As of December 31, 2019, Citi’s total exposure to these energy-related entities remained largely consistent with September 30, 2019, at approximately $6 billion, of which approximately $3 billion consisted of direct outstanding funded loans.






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Credit Risk Mitigation
As part of its overall risk management activities, Citigroup uses credit derivatives and other risk mitigants to hedge portions of the credit risk in its corporate credit portfolio, in addition to outright asset sales. Citi may enter into partial-term hedges as well as full-term hedges. In advance of the expiration of partial-term hedges, Citi will determine, among other factors, the economic feasibility of hedging the remaining life of the instrument. The results of the mark-to-market and any realized gains or losses on credit derivatives are reflected primarily in Principal transactions in the Consolidated Statement of Income.
At September 30, 2020, June 30, 2020 and December 31, 2019, ICG (excluding the delinquency-managed private bank portfolio) had economic hedges on the corporate credit portfolio of $38.4 billion, $36.5 billion and $32.1 billion, respectively. Citigroup’s expected credit loss model used in the calculation of its loan loss reserve 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 (excluding the delinquency-managed private bank portfolio) corporate credit portfolio exposures with the following risk rating distribution:

Rating of Hedged Exposure
September 30,
2020
June 30,
2020
December 31,
2019
AAA/AA/A29 %30 %36 %
BBB52 53 51 
BB/B16 14 12 
CCC or below3 
Total100 %100 %100 %



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ADDITIONAL CONSUMER AND CORPORATE CREDIT DETAILS

Loans Outstanding
3rd Qtr.2nd Qtr.1st Qtr.4th Qtr.3rd Qtr.
In millions of dollars20202020202020192019
Consumer loans
In North America offices(1)
Residential first mortgages(2)
$48,370 $48,167 $47,260 $47,008 $46,337 
Home equity loans(2)
7,625 8,524 8,936 9,223 9,850 
Credit cards125,485 128,032 137,316 149,163 141,560 
Personal, small business and other4,689 4,859 3,675 3,699 3,793 
Total$186,169 $189,582 $197,187 $209,093 $201,540 
In offices outside North America(1)
Residential first mortgages(2)
$38,507 $37,194 $35,744 $38,024 $37,057 
Credit cards21,108 20,966 21,801 25,909 24,367 
Personal, small business and other34,241 33,371 33,698 36,522 34,436 
Total$93,856 $91,531 $91,243 $100,455 $95,860 
Consumer loans, net of unearned income(3)
$280,025 $281,113 $288,430 $309,548 $297,400 
Corporate loans
In North America offices(1)
Commercial and industrial$59,921 $70,755 $81,231 $55,929 $59,645 
Financial institutions52,884 53,860 60,653 53,922 52,678 
Mortgage and real estate(2)
59,340 57,821 55,428 53,371 52,972 
Installment and other26,858 25,602 30,591 31,238 31,303 
Lease financing704 869 988 1,290 1,314 
Total$199,707 $208,907 $228,891 $195,750 $197,912 
In offices outside North America(1)
Commercial and industrial$108,551 $115,471 $121,703 $112,668 $120,900 
Financial institutions32,583 35,173 37,003 40,211 37,908 
Mortgage and real estate(2)
10,424 10,332 9,639 9,780 7,811 
Installment and other32,323 30,678 31,728 27,303 26,774 
Lease financing63 66 72 95 80 
Governments and official institutions3,235 3,552 3,554 4,128 2,958 
Total$187,179 $195,272 $203,699 $194,185 $196,431 
Corporate loans, net of unearned income(4)
$386,886 $404,179 $432,590 $389,935 $394,343 
Total loans—net of unearned income$666,911 $685,292 $721,020 $699,483 $691,743 
Allowance for credit losses on loans (ACLL)(26,426)(26,420)(20,841)(12,783)(12,530)
Total loans—net of unearned income 
and ACLL
$640,485 $658,872 $700,179 $686,700 $679,213 
ACLL as a percentage of total loans—
net of unearned income
(5)
4.00 %3.89 %2.91 %1.84 %1.82 %
ACLL for consumer loan losses as a percentage of
total consumer loans—net of unearned income
(5)
6.96 %6.97 %6.03 %3.20 %3.27 %
ACLL for corporate loan losses as a percentage of
total corporate loans—net of unearned income
(5)
1.82 %1.71 %0.81 %0.75 %0.72 %
(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 $739 million, $734 million, $771 million, $783 million and $783 million at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, respectively. Unearned income on consumer loans primarily represents unamortized origination fees and costs, premiums and discounts.
(4)Corporate loans include private bank loans and are net of unearned income of $(857) million, $(854) million, $(791) million, $(814) million and $(818) million at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, 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.

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Details of Credit Loss Experience
3rd Qtr.2nd Qtr.1st Qtr.4th Qtr.3rd Qtr.
In millions of dollars20202020202020192019
Allowance for credit losses on loans (ACLL) at beginning of period$26,420 $20,841 $12,783 $12,530 $12,466 
Adjustment to opening balance for CECL adoption(1)
— — 4,201 — — 
Adjusted ACLL at beginning of period$26,420 $20,841 $16,984 $12,530 $12,466 
Provision for credit losses on loans (PCLL)
Consumer(2)(3)
$1,378 $4,003 $5,001 $1,948 $1,916 
Corporate431 3,693 1,443 175 146 
Total$1,809 $7,696 $6,444 $2,123 $2,062 
Gross credit losses on loans
Consumer
In U.S. offices$1,478 $1,675 $1,763 $1,672 $1,564 
In offices outside the U.S.537 506 578 535 588 
Corporate
In U.S. offices195 177 116 68 98 
In offices outside the U.S.157 170 22 86 31 
Total$2,367 $2,528 $2,479 $2,361 $2,281 
Credit recoveries on loans(4)
Consumer
In U.S. offices$303 $199 $239 $249 $231 
In offices outside the U.S.118 100 121 128 118 
Corporate
In U.S. offices9 12 13 
In offices outside the U.S.18 11 31 
Total$448 $322 $371 $417 $368 
Net credit losses on loans (NCLs)
In U.S. offices$1,361 $1,641 $1,634 $1,482 $1,418 
In offices outside the U.S.558 565 474 462 495 
Total$1,919 $2,206 $2,108 $1,944 $1,913 
Other—net(5)(6)(7)(8)(9)(10)
$116 $89 $(479)$74 $(85)
Allowance for credit losses on loans (ACLL) at end of period$26,426 $26,420 $20,841 $12,783 $12,530 
ACLL as a percentage of EOP loans(11)
4.00 %3.89 %2.91 %1.84 %1.82 %
Allowance for credit losses on unfunded lending commitments (ACLUC)(12)(13)
$2,299 $1,859 $1,813 $1,456 $1,385 
Total ACLL and ACLUC$28,725 $28,279 $22,654 $14,239 $13,915 
Net consumer credit losses on loans$1,594 $1,882 $1,981 $1,830 $1,803 
As a percentage of average consumer loans2.26 %2.70 %2.66 %2.41 %2.42 %
Net corporate credit losses on loans$325 $324 $127 $114 $110 
As a percentage of average corporate loans0.33 %0.31 %0.13 %0.12 %0.11 %
ACLL by type at end of period(14)
Consumer$19,488 $19,596 $17,390 $9,897 $9,727 
Corporate6,938 6,824 3,451 2,886 2,803 
Total$26,426 $26,420 $20,841 $12,783 $12,530 
(1)On January 1, 2020, Citi adopted Accounting Standards Update (ASC) 326, Financial Instruments—Credit Losses (CECL). The ASU introduces a new credit loss methodology requiring earlier recognition of credit losses while also providing additional transparency about credit risk. On January 1, 2020, Citi recorded a $4.1 billion, or an approximate 29%, pretax increase in the Allowance for credit losses, along with a $3.1 billion after-tax decrease in Retained earnings and a deferred tax asset increase of $1.0 billion. This transition impact reflects (i) a $4.9 billion build to the Consumer allowance for credit losses due to longer estimated tenors than under the incurred loss methodology under prior U.S. GAAP, net of recoveries; and (ii) a $(0.8) billion decrease to the Corporate allowance for credit losses due to shorter remaining tenors, incorporation of recoveries and use of more specific historical loss data based on an increase in portfolio segmentation across industries and geographies. See Note 1 to the Consolidated Financial Statements for further discussion on the impact of Citi’s adoption of CECL.
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(2)During the second quarter of 2020, Citi updated its ACLL estimate of lifetime credit losses related to a change in accounting principle for variable post-charge-off third-party agency collection costs in its U.S. cards portfolios. After June 30, 2020, these costs are recorded as operating expenses for future periods as they are incurred. The impact of this change in estimate effected by a change in accounting principle resulted in an approximate $426 million reduction in Citi's estimated ACLL at June 30, 2020.
(3)During the third quarter of 2020, Citi updated its ACLL estimate of lifetime credit losses related to a change in accounting principle for variable post-charge-off third-party agency collection costs, primarily in its international cards portfolios. After June 30, 2020, these costs are recorded as operating expenses for future periods as they are incurred. The impact of this change in estimate effected by a change in accounting principle resulted in an approximate $122 million reduction in Citi's estimated ACLL at September 30, 2020. For additional information, see “Significant Accounting Policies and Significant Estimates” below.
(4)Recoveries have been reduced by certain collection costs that are incurred only if collection efforts are successful for periods prior to June 30, 2020.
(5)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.
(6)The third quarter of 2020 includes an increase of approximately $116 million related to FX translation.
(7)The second quarter of 2020 includes an increase of approximately $88 million related to FX translation.
(8)The first quarter of 2020 includes a decrease of approximately $483 million related to FX translation.
(9)The fourth quarter of 2019 includes an increase of approximately $86 million related to FX translation.
(10)The third quarter of 2019 includes a decrease of approximately $65 million related to FX translation.
(11)September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, excludes $5.5 billion, $5.8 billion, $4.0 billion, $4.1 billion and $3.9 billion, respectively, of loans that are carried at fair value.
(12)At June 30, 2020, the Corporate ACLUC includes a non-provision transfer of $68 million, representing reserves on performance guarantees as of March 31, 2020. The reserves on these contracts have been reclassified out of the allowance for credit losses on unfunded lending commitments and into other liabilities as of June 30, 2020.
(13)Represents additional credit reserves recorded as Other liabilities on the Consolidated Balance Sheet.
(14)See “Significant Accounting Policies and Significant Estimates” and Note 1 to the Consolidated Financial Statements. Attribution of the allowance is made for analytical purposes only and the entire allowance 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, 2020
In billions of dollarsACLLEOP loans, net of
unearned income
ACLL as a
percentage of EOP loans(1)
North America cards(2)
$14.7 $125.5 11.7 %
North America mortgages(3)
0.7 56.0 1.3 
North America other
0.4 4.7 8.5 
International cards2.0 21.1 9.5 
International other(4)
1.7 72.7 2.3 
Total consumer$19.5 $280.0 7.0 %
Total corporate6.9 386.9 1.8 
Total Citigroup$26.4 $666.9 4.0 %
(1)Loans carried at fair value do not have an ACLL, they are excluded from the ACLL ratio calculation.
(2)Includes both Citi-branded cards and Citi retail services. The $14.7 billion of loan loss reserves represented approximately 38 months of coincident net credit loss coverage. As of September 30, 2020, North America Citi-branded cards ACLL as a percentage of EOP loans was 10.4% and North America Citi retail services ACLL as a percentage of EOP loans was 14.2%.
(3)Of the $0.7 billion, approximately $0.3 billion was allocated to North America mortgages in Corporate/Other, including approximately $0.5 billion and $0.2 billion determined in accordance with ASC 450-20 and ASC 310-10-35 (troubled debt restructurings), respectively. Of the $56.0 billion in loans, approximately $54.1 billion and $1.9 billion of the loans were evaluated in accordance with ASC 450-20 and ASC 310-10-35 (troubled debt restructurings), respectively. For additional information, see Note 14 to the Consolidated Financial Statements.
(4)Includes mortgages and other retail loans.
 December 31, 2019
In billions of dollarsACLLEOP loans, net of
unearned income
ACLL as a
percentage of EOP loans(1)
North America cards(2)
$7.0 $149.2 4.7 %
North America mortgages(3)
0.3 56.2 0.5 
North America other
0.1 3.7 2.7 
International cards1.4 25.9 5.4 
International other(4)
1.1 74.6 1.5 
Total consumer$9.9 $309.6 3.2 %
Total corporate2.9 389.9 0.7 
Total Citigroup$12.8 $699.5 1.8 %
(1)Loans carried at fair value do not have an ACLL, they are excluded from the ACLL ratio calculation.
(2)Includes both Citi-branded cards and Citi retail services. The $7.0 billion of loan loss reserves represented approximately 15 months of coincident net credit loss coverage.
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(3)Of the $0.3 billion, nearly all was allocated to North America mortgages in Corporate/Other, including $0.1 billion and $0.2 billion determined in accordance with ASC 450-20 and ASC 310-10-35 (troubled debt restructurings), respectively. Of the $56.2 billion in loans, approximately $54.2 billion and $2.0 billion of the loans were evaluated in accordance with ASC 450-20 and ASC 310-10-35 (troubled debt restructurings), respectively. For additional information, see Note 14 to the Consolidated Financial Statements.
(4)Includes mortgages and other retail loans.

The following table details Citi’s corporate credit allowance for credit losses on loans (ACLL) by industry exposure:
September 30, 2020
In millions of dollars, except percentages
Funded exposure(1)
ACLL(2)(3)
ACLL as a % of funded exposure
Transportation and industrials$62,879 $2,095 3.33 %
Private bank70,030 378 0.54 
Consumer retail34,998 802 2.29 
Health8,017 176 2.20 
Technology, media and telecom31,136 456 1.46 
Power, chemicals, metals and mining20,947 466 2.22 
Banks and finance companies30,088 258 0.86 
Securities firms380 10 2.63 
Real estate42,197 639 1.51 
Energy and commodities16,244 793 4.88 
Public sector13,723 268 1.95 
Insurance2,208 10 0.45 
Asset managers and funds4,881 20 0.41 
Financial markets infrastructure401 — — 
Other industries5,561 248 4.46 
Total$343,690 $6,619 1.93 %

(1)    Funded exposure includes $5,510 million of loans at fair value that are not subject to ACLL under the CECL standard.
(2)    As of September 30, 2020, the ACLL shown above reflects coverage of 0.5% of funded investment grade exposure and 5.7% of funded non-investment grade exposure.
(3)    Excludes $319 million of ACLL associated with approximately $43 billion of funded delinquency-managed private bank exposures at September 30, 2020. Including those reserves and exposures, the total ACLL is 1.82% of total funded exposure, including 0.5% of funded investment grade exposure and 4.2% of funded non-investment grade exposure.































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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” in Citi’s 2019 Annual Report on 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.

Sept. 30,Jun. 30,Mar. 31,Dec. 31,Sept. 30,
In millions of dollars20202020202020192019
Corporate non-accrual loans(1)(2)
North America$2,018 $2,466 $1,138 $1,214 $1,056 
EMEA720 812 720 430 307 
Latin America609 585 447 473 399 
Asia237 153 179 71 84 
Total corporate non-accrual loans$3,584 $4,016 $2,484 $2,188 $1,846 
Consumer non-accrual loans(3)
North America$934 $928 $926 $905 $1,013 
Latin America493 608 489 632 595 
Asia(4)
263 293 284 279 258 
Total consumer non-accrual loans$1,690 $1,829 $1,699 $1,816 $1,866 
Total non-accrual loans$5,274 $5,845 $4,183 $4,004 $3,712 
(1)Approximately 58%, 63%, 45%, 44% and 41% of Citi’s corporate non-accrual loans were performing at September 30, 2020, June 30, 2020, March 31, 2020, December 31, 2019 and September 30, 2019, respectively.
(2)The September 30, 2020 corporate non-accrual loans represented 0.99% of total corporate loans.
(3)    Excludes purchased credit-deteriorated loans, as they are generally accreting interest. The carrying value of these loans was $138 million at September 30, 2020, $121 million at June 30, 2020, $129 million at March 31, 2020, $128 million at December 31, 2019 and $117 million at September 30, 2019.
(4)    Asia GCB includes balances in certain EMEA countries for all periods presented.






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The changes in Citigroup’s non-accrual loans were as follows:
Three Months EndedThree Months Ended
September 30, 2020September 30, 2019
In millions of dollarsCorporateConsumerTotalCorporateConsumerTotal
Non-accrual loans at beginning of period$4,016 $1,829 $5,845 $1,667 $1,971 $3,638 
Additions832 403 1,235 1,037 912 1,949 
Sales and transfers to HFS (42)(42)(18)(22)(40)
Returned to performing(12)(76)(88)(10)(87)(97)
Paydowns/settlements(1,037)(150)(1,187)(849)(289)(1,138)
Charge-offs(158)(303)(461)(35)(421)(456)
Other(57)29 (28)54 (198)(144)
Ending balance$3,584 $1,690 $5,274 $1,846 $1,866 $3,712 
Nine Months EndedNine Months Ended
September 30, 2020September 30, 2019
In millions of dollarsCorporateConsumerTotalCorporateConsumerTotal
Non-accrual loans at beginning of period$2,188 $1,816 $4,004 $1,511 $2,026 $3,537 
Additions4,062 1,993 6,055 2,259 2,457 4,716 
Sales and transfers to HFS(1)(73)(74)(23)(78)(101)
Returned to performing(129)(280)(409)(49)(321)(370)
Paydowns/settlements(2,193)(583)(2,776)(1,832)(729)(2,561)
Charge-offs(290)(908)(1,198)(107)(1,229)(1,336)
Other(53)(275)(328)87 (260)(173)
Ending balance$3,584 $1,690 $5,274 $1,846 $1,866 $3,712 


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,
In millions of dollars20202020202020192019
OREO
North America$22 $32 $35 $39 $51 
EMEA — 
Latin America8 14 14 
Asia12 
Total OREO$42 $44 $50 $61 $72 
Non-accrual assets
Corporate non-accrual loans$3,584 $4,016 $2,484 $2,188 $1,846 
Consumer non-accrual loans1,690 1,829 1,699 1,816 1,866 
Non-accrual loans (NAL)$5,274 $5,845 $4,183 $4,004 $3,712 
OREO$42 $44 $50 $61 $72 
Non-accrual assets (NAA)$5,316 $5,889 $4,233 $4,065 $3,784 
NAL as a percentage of total loans0.79 %0.85 %0.58 %0.57 %0.54 %
NAA as a percentage of total assets0.24 0.26 0.19 0.21 0.19 
ACLL as a percentage of NAL(1)
501 %452 %498 %319 %338 %

(1)The allowance for credit losses on loans includes the allowance for Citi’s credit card portfolios and purchased distressed loans, while the non-accrual loans exclude credit card balances (with the exception of certain international portfolios) and purchased credit-deteriorated loans as these continue to accrue interest until charge-off.
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Renegotiated Loans
The following table presents Citi’s loans modified in TDRs:
In millions of dollarsSept. 30, 2020Dec. 31, 2019
Corporate renegotiated loans(1)
In U.S. offices
Commercial and industrial(2)
$227 $226 
Mortgage and real estate66 57 
Financial institutions — 
Other19 
Total$312 $287 
In offices outside the U.S.
Commercial and industrial(2)
$163 $200 
Mortgage and real estate32 22 
Financial institutions — 
Other3 40 
Total$198 $262 
Total corporate renegotiated loans$510 $549 
Consumer renegotiated loans(3)
In U.S. offices
Mortgage and real estate$1,869 $1,956 
Cards1,433 1,464 
Installment and other23 17 
Total$3,325 $3,437 
In offices outside the U.S.
Mortgage and real estate$286 $305 
Cards490 466 
Installment and other424 400 
Total$1,200 $1,171 
Total consumer renegotiated loans$4,525 $4,608 
(1)Includes $476 million and $472 million of non-accrual loans included in the non-accrual loans table above at September 30, 2020 and December 31, 2019, respectively. The remaining loans are accruing interest.
(2)In addition to modifications reflected as TDRs at September 30, 2020 and December 31, 2019, Citi also modified $49 million and $26 million, respectively, of commercial loans risk rated “Substandard Non-Performing” or worse (asset category defined by banking regulators) in offices outside the U.S. These modifications were not considered TDRs because the modifications did not involve a concession or because the modifications qualified for exemptions from TDR accounting provided by the CARES Act or Interagency Guidance.
(3)Includes $765 million and $814 million of non-accrual loans included in the non-accrual loans table above at September 30, 2020 and December 31, 2019, respectively. The remaining loans were accruing interest.

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LIQUIDITY RISK

For additional information on funding and liquidity at Citigroup, including its objectives, management and measurement, see “Liquidity Risk” and “Risk Factors” in Citi’s 2019 Annual Report on Form 10-K.




High-Quality Liquid Assets (HQLA)
CitibankCiti non-bank and other entitiesTotal
In billions of dollarsSept. 30, 2020Jun. 30, 2020Sept. 30, 2019Sept. 30, 2020Jun. 30, 2020Sept. 30, 2019Sept. 30, 2020Jun. 30, 2020Sept. 30, 2019
Available cash$279.3 $273.8 $123.7 $2.0 $2.9 $31.8 $281.3 $276.7 $155.5 
U.S. sovereign80.6 67.5 94.3 56.0 42.2 32.4 136.6 109.7 126.7 
U.S. agency/agency MBS34.6 36.4 55.5 5.8 7.0 4.6 40.4 43.4 60.1 
Foreign government debt(1)
44.5 46.6 65.9 17.0 11.4 10.9 61.5 58.0 76.8 
Other investment grade1.5 1.3 2.9 0.7 0.7 0.7 2.2 2.0 3.6 
Total HQLA (AVG)$440.5 $425.6 $342.3 $81.5 $64.2 $80.4 $522.0 $489.8 $422.7 

Note: The amounts set forth 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, Mexico, India, Singapore and South Korea.

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 and any amounts in excess of these minimums that are assumed to be transferable to other entities within Citigroup.
Citigroup’s HQLA increased quarter-over-quarter, reflecting an increase in average long-term non-bank debt. While deposit growth and a decline in loans increased liquidity at Citibank, a significant amount of this liquidity was assumed not to be transferable to other entities within Citigroup and therefore not included in Citi’s consolidated HQLA.
    As of September 30, 2020, Citigroup had approximately $965 billion of available liquidity resources to support client and business needs, including end-of-period 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.


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 dollarsSept. 30, 2020Jun. 30, 2020Sept. 30, 2019
HQLA$522.0 $489.8 $422.7 
Net outflows442.6 420.1 373.4 
LCR118 %117 %113 %
HQLA in excess of net outflows$79.4 $69.7 $49.3 

Note: The amounts are presented on an average basis.

As of September 30, 2020, Citigroup’s average LCR increased modestly from the quarter ended June 30, 2020, primarily reflecting the increase in average long-term non-bank debt.

67


Long-Term Liquidity Measurement: Net Stable Funding Ratio (NSFR)
On October 20, 2020, the U.S. banking agencies adopted a final rule to assess the availability of a bank’s stable funding against a required level. The intended purpose of the final rule is to support the ability of financial institutions to provide financial intermediation to businesses and households across a range of market conditions and reduce the possibility of funding shocks compromising a financial institution’s liquidity position.
In general, a bank’s available stable funding will include portions of equity, deposits and long-term debt, while its required stable funding will be based on the liquidity characteristics of its assets, derivatives and commitments. Standardized weightings will be required to be applied to the various asset and liabilities classes. The ratio of available stable funding to required stable funding will be required to be greater than 100%.
The final rule becomes effective beginning July 1, 2021 while public disclosure requirements to report the ratio will occur on a semi-annual basis beginning June 30, 2023. Citi expects to be in compliance with the final rule when the rule is effective. Citi continues to review this recently-issued rule.

Loans
The table below details the average loans, by business and/or segment, and the total end-of-period loans for each of the periods indicated:
In billions of dollarsSept. 30, 2020Jun. 30, 2020Sept. 30, 2019
Global Consumer Banking
North America$179.1 $181.0 $188.8 
Latin America13.6 13.4 17.0 
Asia(1)
79.7 77.1 78.3 
Total$272.4 $271.5 $284.1 
Institutional Clients Group
Corporate lending$166.1 $190.4 $160.9 
Treasury and trade solutions (TTS)67.1 71.0 72.5 
Private bank110.3 108.9 104.0 
Markets and securities services
  and other
53.1 52.0 52.3 
Total$396.6 $422.3 $389.7 
Total Corporate/Other
$8.2 $9.0 $11.2 
Total Citigroup loans (AVG)$677.2 $702.8 $685.0 
Total Citigroup loans (EOP)$666.9 $685.3 $691.7 

(1)Includes loans in certain EMEA countries for all periods presented.

End-of-period loans declined 4% year-over-year and 3% sequentially, on both a reported basis as well as excluding the impact of FX translation.
On an average basis, loans declined 1% year-over-year and 4% sequentially. Excluding the impact of FX translation, average loans declined 1% year-over-year and 5% sequentially. On this basis, average GCB loans declined 4% year-over-year, reflecting the impact of lower customer spending in Citi’s cards businesses, higher payments by
customers given government stimulus and a continuation of Citi’s pause in proactive marketing.
Excluding the impact of FX translation, average ICG loans increased 2% year-over-year. Loans in corporate lending grew 4% on an average basis, but were down 14% sequentially, reflecting significant repayments as Citi assisted its clients in accessing the capital markets. Private bank loans increased 6%, largely driven by residential real estate lending to Citi’s high-net-worth clients. TTS loans decreased 7%, reflecting weakness in underlying trade flows and the continued low level of spend in commercial cards.
Average Corporate/Other loans continued to decline (down 27%), driven by the wind-down of legacy assets.

Deposits
The tabl