-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, s82++JFZnwUyDwbWD3HhaT1ASjffpUvpydjPbUEnq8lbfNgA+5nsqhTAMjijBCax rwtcz3VvISM8q3Qvi+AWpQ== 0000020405-94-000029.txt : 19940721 0000020405-94-000029.hdr.sgml : 19940721 ACCESSION NUMBER: 0000020405-94-000029 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19940630 ITEM INFORMATION: Bankruptcy or receivership FILED AS OF DATE: 19940720 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CITICORP CENTRAL INDEX KEY: 0000020405 STANDARD INDUSTRIAL CLASSIFICATION: 6021 IRS NUMBER: 132614988 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05738 FILM NUMBER: 94539313 BUSINESS ADDRESS: STREET 1: 909 THIRD AVENUE STREET 2: 30TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10043- BUSINESS PHONE: 212-559-6754 MAIL ADDRESS: STREET 1: 425 PARK AVE- 2ND F STREET 2: ATTN: LEGAL AFFAIRS OFFICE CITY: NEW YORK STATE: NY ZIP: 10043 FORMER COMPANY: FORMER CONFORMED NAME: FIRST NATIONAL CITY CORP DATE OF NAME CHANGE: 19740414 FORMER COMPANY: FORMER CONFORMED NAME: CITY BANK OF NEW YORK NATIONAL ASSOCIATI DATE OF NAME CHANGE: 19680903 8-K 1 1994 2ND QUARTER 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 19, 1994 CITICORP (Exact name of registrant as specified in charter) Delaware 1-5738 13-2614988 (State or other (Commission File Number) (IRS Employer jurisdiction of Identification incorporation) Number) 399 Park Avenue, New York, New York 10043 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (212)559-1000 Not Applicable (Former name or former address, if changed since last report) Item 5. Other Events On July 19, 1994 Citicorp reported net income of $877 million in the 1994 second quarter. John S. Reed, Citicorp Chairman, commented: "The quarter was highlighted by strong earnings and significant strengthening of our balance sheet, with total capital and capital ratios improving, loan loss reserves increasing by over $400 million and commercial nonperforming assets dropping by $1.3 billion. "The company's core business is solid. Trading was better than in the first quarter but still weak. Revenues from other sources were up from a year ago and approximately even with the first quarter. Costs are under control. And the general credit picture is importantly improved. "The solid operating results combined with the refinancing agreement reached with Brazil, some asset gains, and tax benefits flowing from FAS 109 to produce the strong quarter." The 1994 second quarter net income of $877 million compared with $446 million in the same 1993 quarter. Fully diluted net income per common share of $1.64 compared with $0.82 in the year- earlier quarter. Net income in the first half of 1994 was $1.4 billion, or $2.66 per share, compared with $1.1 billion, or $2.06 per share, in the same 1993 half-year. Mr. Reed noted that the company continued to build capital, with total regulatory capital at June 30, 1994 at $24.5 billion, estimated to be 11.6% of risk-adjusted assets, and the Tier 1 capital ratio increasing to an estimated 7.1% from 6.9% at the 1994 first quarter-end. A year earlier the total capital ratio was 10.3% and the Tier 1 ratio was 5.7%. Revenues in the quarter (adjusted for credit-related costs, the effect of credit card securitization and net asset gains) totaled $4.2 billion, up modestly from $4.1 billion in the 1994 first quarter but below the 1993 second quarter's $4.4 billion. Excluding securities and foreign exchange trading, revenues were $4.1 billion in the 1994 second quarter, up 6% from $3.8 billion in the same 1993 quarter. Trading in the second quarter amounted to $159 million, up from $71 million in the 1994 first quarter but sharply down from $572 million in the second quarter of last year. Operating expenses (excluding OREO costs) were $2.5 billion, slightly higher than the $2.4 billion recorded in both the 1994 first quarter and the 1993 second quarter. The second quarter net income included recognition of $150 million of deferred tax benefits and net pretax gains of $117 million ($74 million after tax) from net asset gains. These included recognition as other revenue of $173 million representing the fair value of interest bonds received in connection with the Brazil refinancing agreement concluded in the quarter, and recognition as investment securities gains of $71 million from the sale of Brazilian interest bonds received in a previous restructuring, offset by writedowns of $157 million in the value of Latin American investments. Such items in comparative quarters amounted to a net gain of $23 million ($14 million after tax) in the first quarter of 1994 and a net loss of $25 million ($14 million after tax) in the second quarter of 1993. As a result of the Brazil refinancing agreement, Citicorp received approximately $1.4 billion in market value of Brazilian bonds for Brazilian debt that was carried on Citicorp's books at $818 million and a new money investment of $221 million. Upon receipt of the bonds, Citicorp recorded a credit recovery of $318 million to its loan loss reserve in recognition of their market value, in accordance with Financial Accounting Standard No. 115, "Accounting for Certain Investments in Debt and Equity Securities." (Citicorp's accounting treatment recognized the economic effects of the Brazil refinancing agreement in the loan loss reserve and other revenue.) Loan loss reserves increased to a total of $4.9 billion at June 30, 1994, up from $4.5 billion at the end of the first quarter. The increase included the recovery of $318 million arising from receipt of Brazilian bonds noted above. In addition, a $90 million provision in excess of net credit losses was added to the reserves. Citicorp no longer reports a separate portion of the reserves attributed to refinancing countries, which is combined with the commercial reserve. Commercial cash-basis loans and Other Real Estate Owned together declined in the quarter by $1.3 billion to $4.7 billion. Of the reduction, $818 million resulted from Brazilian loans having been exchanged for marketable securities. Commercial credit costs were $73 million, up slightly from $60 million in the 1994 first quarter, but sharply below $297 million in the 1993 second quarter. Consumer credit costs decreased in the quarter, totaling $585 million, compared with $614 million in the 1994 first quarter and $708 million in the 1993 second quarter. CORE BUSINESS RESULTS Global Consumer The Global Consumer businesses earned $411 million in the second quarter, a 39% increase over the $296 million earned in the comparable 1993 quarter. The consumer business in North America continued to benefit from an improving credit profile in the U.S. card portfolio, and the emerging economies displayed solid revenue momentum in both the branch and cards businesses. The Global Consumer businesses earned $838 million in the first half of 1994, an increase of $251 million or 43% from the 1993 first half. Net income in the North America, Europe and Japan consumer businesses was $250 million in the quarter, compared with $168 million in last year's second quarter. Net income in the emerging economies was $161 million, compared with $128 million in the 1993 second quarter. Adjusted revenues in the second quarter of $2.7 billion were up 3% from last year on the strength of an 18% increase in the emerging economies. Revenues in North America, Europe and Japan declined slightly as good results in European branches were overshadowed by the effect of competitive pricing strategies in the U.S. credit card business. Operating expenses rose 2% from the second quarter of last year as cost containment efforts, particularly in the United States and Europe, partially offset continued business expansion in the emerging economies. Total consumer credit costs (principally adjusted for the effect of credit card securitization) declined by $123 million from the 1993 second quarter, primarily reflecting continued improvement in the U.S. credit card portfolio. Consumer loans on the balance sheet that are delinquent 90 days or more fell to $3.4 billion from $3.5 billion at the end of the 1994 first quarter and from $3.8 billion at June 30, 1993. Global Finance The Global Finance businesses reported net income of $285 million in the second quarter, compared with $440 million in the 1993 second quarter. Year-to-date earnings totaled $549 million, down from $820 million reported for the first half of 1993. Trading-related activities were the principal factor in the revenue decline from 1993. Customer demand continued, reflecting positively on the derivatives business, but securities and foreign exchange trading was hampered by difficult markets. Reflecting the lower trading results, the Global Finance businesses in North America, Europe and Japan had net income of $102 million in the second quarter and $194 million year-to-date, compared with $235 million and $464 million in the respective 1993 periods. The businesses in emerging economies reported net income of $183 million in the second quarter, compared with $205 million in the same 1993 quarter, reflecting lower trading revenues in Latin America and Asia. Year-to-date earnings from emerging economies were on par with last year's results, totaling $355 million and $356 million in the six-month periods of 1994 and 1993, respectively. Global Finance adjusted revenues were $1.3 billion in the second quarter and $2.5 billion in the first half-year, down 20% and 19% from the respective 1993 periods. Second quarter operating expenses of $824 million rose 3% from both the 1994 first quarter and the 1993 second quarter, largely related to continued business expansion in the emerging economies. Gains from the sale of OREO properties contributed to a positive net credit amount of $8 million in the second quarter, compared with a $46 million charge in the same 1993 period. In the 1994 six-month period, positive net credit amounts totaled $66 million, compared with net charges of $115 million in the first six months of 1993. Cash-basis loans at June 30, 1994 of $581 million compared with $699 million at the end of the 1994 first quarter and with $1.3 billion at the end of the year-ago second quarter. OTHER AREAS North America Commercial Real Estate North America Commercial Real Estate reported continued progress in dealing with its portfolio. Cash-basis loans and OREO together declined to $3.4 billion, a decrease of $343 million from the end of the 1994 first quarter and $1.9 billion from the end of the 1993 second quarter. This improvement resulted from multiple initiatives, including restructurings, sales, write-offs, writedowns and paydowns. Cash-basis loans of $1.5 billion were down from $1.7 billion at the 1994 first quarter-end and from $2.5 billion at the end of the same 1993 quarter. OREO totaled $1.9 billion at the close of the 1994 second quarter, down from $2.1 billion at the end of the first quarter and $2.8 billion at the end of the 1993 second quarter. Total exposure was reduced by approximately $1.0 billion during the quarter, to $11.7 billion, down $3.9 billion from the 1993 second quarter. North America Commercial Real Estate reported a second quarter net loss of $72 million, a significant improvement from the $182 million loss reported in the 1993 second quarter, reflecting lower credit costs. Write-offs and writedowns were $75 million, down from $104 million in the 1994 first quarter and from $201 million in the 1993 second quarter. Cross-Border Refinancing Portfolio The principal effects of the completion of the Brazil financing agreement were noted earlier. The cross-border refinancing portfolio reported net income of $53 million in the second quarter, which included $47 million of interest from Brazil and a $10 million release of reserves. Prior-year second quarter net income was $12 million, with $6 million of Brazil interest payments and no release of reserves. Cash-basis loans totaled $165 million at the end of the second quarter, compared with $991 million at the 1994 first quarter-end and $1.1 billion at the end of the 1993 second quarter. TAXES Income tax expense of $245 million for the quarter included $395 million related to current operations, less a $150 million reduction of the deferred tax asset valuation allowance because of reassessment of the expected level and mix of future earnings. The taxes related to current operations bring the effective rate for the first six months to 37%, compared with 39% for the first quarter of 1994 and 43% for the first six months of 1993. Following are tables of financial highlights, an analysis of operating margin and pretax earnings, business results and credit indicators, along with financial statements. Further details concerning the financial results will be available in Citicorp's Form 10-Q to be published in August. KEY RATIOS & OTHER CONSOLIDATED FINANCIAL DATA
Second Quarter Year-to-Date 1994 1993 1994 1993 ------ ------ ------ ------ NET INCOME ($M): Before Cumulative Effect of Accounting Changes..... $ 877 $ 446 $1,486 $ 816 After Cumulative Effect of Accounting Changes(A).. $ 877 $ 446 $1,430 $1,116 NET INCOME PER COMMON SHARE: On Common & Common Equivalent Shares Before Cumulative Effect of Accounting Changes..... $ 1.83 $ 0.88 $ 3.07 $ 1.59 After Cumulative Effect of Accounting Changes(A).. $ 1.83 $ 0.88 $ 2.94 $ 2.26 Assuming Full Dilution Before Cumulative Effect of Accounting Changes..... $ 1.64 $ 0.82 $ 2.77 $ 1.49 After Cumulative Effect of Accounting Changes(A).. $ 1.64 $ 0.82 $ 2.66 $ 2.06 COMMON STOCKHOLDERS' EQUITY PER SHARE(B)............... $29.54 $23.96 CLOSING STOCK PRICE AT QUARTER END............. $39.88 $30.13 PROFITABILITY RATIOS (Annualized): Return on Total Assets(C): Before Accounting Changes.. 1.36% 0.79% 1.17% 0.73% After Accounting Changes(A) 1.36% 0.79% 1.15% 0.86% Return on Common Stockholders' Equity(B): Before Accounting Changes.. 28.7% 16.9% 24.5% 15.7% After Accounting Changes(A) 28.7% 16.9% 24.0% 19.2% Return on Total Stockholders' Equity(B): Before Accounting Changes.. 23.4% 14.8% 20.3% 13.9% After Accounting Changes(A) 23.4% 14.8% 19.9% 16.5% CAPITAL: Tier 1 ($B)................ $ 15.0 $ 11.8 Tier 1 & 2 ($B)(D)......... $ 24.5 $ 21.6 Tier 1 Ratio(D)............ 7.1% 5.7% Tier 1 & 2 Ratio(D)........ 11.6% 10.3% Common Equity as a % of Total Assets(B)(C).. 4.5% 4.2% Total Equity as a % of Total Assets(B)(C).. 6.1% 5.8% DIVIDENDS DECLARED ($M): Common................... $ 58 $ - $ 58 $ - Preferred................ $ 91 $ 75 $ 178 $ 148 (A) Includes the cumulative effect of adopting SFAS No. 112, "Employers' Accounting for Postemployment Benefits", as of January 1, 1994. The 1993 results include the cumulative effect of adopting SFAS No. 109 "Accounting for Income Taxes", as of January 1, 1993. (B) The 1994 periods include the effect of adopting SFAS No. 115, "Accounting for Certain Investments in Debt and Equity Securities", as of January 1, 1994. (C) The 1994 periods include the effect of adopting FASB Interpretation No. 39, "Offsetting of Amounts Related to Certain Contracts", as of January 1, 1994. (D) Estimated.
OPERATING MARGIN
($ Millions) Second Quarter Year-to-Date 1994 1993 1994 1993 ------ ------ ------ ------ Total Revenue .......... $4,050 $3,968 $7,911 $7,853 Effect of Credit Card Securitization......... 264 328 532 687 Net Cost to Carry(A).... 31 72 60 155 Capital Building Transactions........... (117) 25 (140) (50) ----- ----- ----- ----- Adjusted Revenue........ $4,228 $4,393 $8,363 $8,645 ----- ----- ----- ----- Total Operating Expense................ $2,456 $2,494 $4,903 $5,020 Net OREO Costs (B)...... 19 (66) (9) (181) ----- ----- ----- ----- Adjusted Operating Expense................ $2,475 $2,428 $4,894 $4,839 ----- ----- ----- ----- Operating Margin........ $1,753 $1,965 $3,469 $3,806 Consumer Credit Costs (C).............. 585 708 1,199 1,424 Commercial Credit Costs (D).............. 73 297 133 677 ----- ----- ----- ----- Operating Margin Less Credit Costs...... $1,095 $ 960 $2,137 $1,705 Add'l Provision: - -Consumer(E)............ 50 75 100 150 - -Commercial(E).......... 50 101 100 176 - -Refinancing Portfolio.. (10) - (44) - Capital Building Transactions........... 117 (25) 140 50 ----- ----- ----- ----- Income Before Taxes and Cumulative Effect of Accounting Changes.... $1,122 $ 759 $2,121 $1,429 ===== ===== ===== ===== (A) Principally the net cost to carry commercial cash-basis loans and Other Real Estate Owned (OREO). (B) Principally net write-downs (recoveries) and direct revenues and expenses related to OREO. (C) Principally consumer net credit write-offs adjusted for the effect of securitization of credit card receivables. (D) Includes commercial net credit write-offs, net cost to carry, and net OREO write-downs (recoveries) and direct revenues and expenses related to OREO. (E) Represents provision for credit losses above net write-offs.
BUSINESS FOCUS Net Income (Loss) ($ Millions)
Second Quarter Year-to-Date 1994 1993(A) 1994 1993(A) ------ ------ ------ ------ Global Consumer: North America, Europe and Japan............. $ 250 $ 168 $ 507 $ 317 Emerging Economies...... 161 128 331 270 ----- ----- ----- ----- Total Global Consumer.... $ 411 $ 296 $ 838 $ 587 ----- ----- ----- ----- Global Finance: North America, Europe and Japan............. $ 102 $ 235 $ 194 $ 464 Emerging Economies...... 183 205 355 356 ----- ----- ----- ----- Total Global Finance..... $ 285 $ 440 $ 549 $ 820 ----- ----- ----- ----- North America Commercial Real Estate............ $ (72) $ (182) $ (148) $ (388) Cross-Border Refinancing Portfolio.............. 53 12 101 49 Corporate Items(B)....... 200 (120) 146 (252) ----- ----- ----- ----- $ 877 $ 446 $1,486 $ 816 Cumulative Effect of Accounting Changes(C).. - - (56) 300 ----- ----- ----- ----- Citicorp................. $ 877 $ 446 $1,430 $1,116 ===== ===== ===== ===== (A) Reclassified to conform to current quarter's presentation. (B) Corporate Items includes the effects of capital building transactions and the offset created by attributing income taxes to business activities on a local tax basis. Second quarter and year-to-date 1994 amounts also reflect a $150 million tax benefit related to a reduction of the deferred tax asset valuation allowance following a reassessment of the expected level and mix of future earnings. (C) Includes the cumulative effect of adopting SFAS No. 112, "Employers' Accounting for Postemployment Benefits", as of January 1, 1994. The 1993 results include the cumulative effect of adopting SFAS No. 109, "Accounting for Income Taxes", as of January 1, 1993.
GLOBAL CONSUMER
($ Millions) Second Quarter % Year-to-Date % 1994 1993(A) Chg 1994 1993(A)Chg ------ ------ --- ------ ------ --- Total Revenue........... $2,484 $2,349 6 $4,974 $4,578 9 ----- ----- ----- ----- Total Operating Expense. $1,512 $1,487 2 $3,005 $2,914 3 ----- ----- ----- ----- Provision For Credit Losses ......... $ 361 $ 442 (18) $ 739 $ 853 (13) ----- ----- ----- ----- Income Before Taxes..... $ 611 $ 420 45 $1,230 $ 811 52 Income Taxes............ 200 124 61 392 224 75 ----- ----- ----- ----- Net Income.............. $ 411 $ 296 39 $ 838 $ 587 43 ===== ===== ===== ===== OTHER DATA: Average Assets ($B)..... 103 99 4 103 99 4 Return on Assets........ 1.60% 1.20% - 1.64% 1.20% - Adjusted for Credit- Related Items: Total Revenue(B) North America, Europe and Japan.... $2,137 $2,161 (1) $4,284 $4,239 1 Emerging Economies... 612 520 18 1,225 1,034 18 ----- ----- ----- ----- Total Global Consumer.. $2,749 $2,681 3 $5,509 $5,273 4 ----- ----- ----- ----- Other Operating Expense(C) North America, Europe and Japan.... $1,159 $1,177 (2) $2,304 $2,307 - Emerging Economies... 344 301 14 676 581 16 ----- ----- ----- ----- Total Global Consumer.. $1,503 $1,478 2 $2,980 $2,888 3 ----- ----- ----- ----- Credit Costs (D) North America, Europe and Japan.... $ 545 $ 668 (18) $1,121 $1,349 (17) Emerging Economies... 40 40 - 78 75 4 ----- ----- ----- ----- Total Global Consumer.. $ 585 $ 708 (17) $1,199 $1,424 (16) ----- ----- ----- ----- (A) Reclassified to conform to current quarter's presentation. (B) Adjusted principally for the effect of credit card securitization. (C) Excludes net write-downs and net direct expense related to OREO for certain real estate lending activities. (D) Principally net credit write-offs adjusted for the effect of credit card securitization. Includes U.S. credit card net credit losses for both held and securitized receivables of $352 million and $733 million for 1994 second quarter and year-to-date, respectively, and $457 million and $938 million for the comparable periods of 1993.
GLOBAL FINANCE
($ Millions) Second Quarter % Year-to-Date % 1994 1993(A) Chg 1994 1993(A)Chg ------ ------ --- ------ ------ --- Total Revenue........... $1,240 $1,550 (20) $2,444 $2,996 (18) ----- ----- ----- ----- Total Operating $ 796 $ 796 - $1,581 $1,633 (3) Expense............... ----- ----- ----- ----- Provision For Credit Losses ......... $ 21 $ 87 (76) $ (13) $ 198 NM ----- ----- ----- ----- Income Before Taxes..... $ 423 $ 667 (37) $ 876 $1,165 (25) Income Taxes............ 138 227 (39) 327 345 (5) ----- ----- ----- ----- Net Income.............. $ 285 $ 440 (35) $ 549 $ 820 (33) ===== ===== ===== ===== OTHER DATA: Average Assets ($B)(B).. 139 108 29 136 106 28 Return on Assets........ 0.82% 1.63% - 0.81% 1.56% - Adjusted for Credit- Related Items: Total Revenue(C) North America, Europe and Japan.... $ 702 $1,012 (31) $1,392 $1,956 (29) Emerging Economies... 549 552 (1) 1,064 1,077 (1) ----- ----- ----- ----- Total Global Finance... $1,251 $1,564 (20) $2,456 $3,033 (19) ----- ----- ----- ----- Other Operating Expense(D) North America, Europe and Japan.... $ 545 $ 540 1 $1,082 $1,057 2 Emerging Economies... 279 260 7 540 570 (5) ----- ----- ----- ----- Total Global Finance... $ 824 $ 800 3 $1,622 $1,627 - ----- ----- ----- ----- Credit Costs (E) North America, Europe and Japan.... $ (15) $ 38 NM $ (61) $ 92 NM Emerging Economies... 7 8 (13) (5) 23 NM ----- ----- ----- ----- Total Global Finance... $ (8) $ 46 NM $ (66) $ 115 NM ----- ----- ----- ----- (A) Reclassified to conform to current quarter's presentation. (B) The 1994 periods reflect the effect of adopting FASB Interpretation No. 39, "Offsetting of Amounts Related to Certain Contracts", as of January 1, 1994. (C) After adding back the net cost to carry cash-basis loans and OREO. (D) Excludes net write-downs (recoveries) and net direct revenues and expenses related to OREO. (E) Includes net write-offs (recoveries), the net cost to carry cash-basis loans and OREO, as well as net write-downs (recoveries) and direct revenues and expenses related to OREO. NM Not meaningful as percentage exceeds 100%.
NORTH AMERICA COMMERCIAL REAL ESTATE
($ Millions) Second Quarter % Year-to-Date % 1994 1993(A) Chg 1994 1993(A)Chg ------ ------ --- ----- ------ --- Total Revenue.......... $ 24 $ (18) NM $ 43 $ (42) NM ---- ----- ----- ----- Total Operating Expense $ 33 $ 100 (67) $ 93 $ 226 (59) ---- ----- ----- ----- Provision For Credit Losses......... $ 101 $ 186 (46) $ 207 $ 354 (42) ---- ----- ----- ----- (Loss) Before Taxes.... $(110) $ (304) 64 $ (257) $ (622) 59 Income Taxes........... (38) (122) 69 (109) (234) 53 ---- ----- ----- ----- Net (Loss)............. $ (72) $ (182) 60 $ (148) $ (388) 62 ==== ===== ===== ===== OTHER DATA: Average Assets ($B).... 9 12 (25) 9 13 (31) Adjusted for Credit- Related Items: Total Revenue (B).... 43 36 19 88 68 29 Total Operating Expense (C)......... 33 39 (15) 68 77 (12) Credit Costs (D)..... 82 251 (67) 201 563 (64) (A) Reclassified to conform to current quarter's presentation. (B) After adding back the net cost to carry cash-basis loans and OREO. (C) Excludes net write-downs and direct revenues and expenses related to OREO. (D) Includes net write-offs, the net cost to carry cash-basis loans and OREO, as well as net write-downs and direct revenues and expenses related to OREO. NM Not meaningful as percentage exceeds 100%.
CROSS-BORDER REFINANCING PORTFOLIO
($ Millions) Second Quarter % Year-to-Date % 1994 1993(A) Chg 1994 1993(A)Chg ------ ------ --- ------ ------ --- Total Revenue .......... $ 56 $ 13 NM $ 84 $ 59 42 ----- ----- ----- ----- Total Operating Expense. $ 6 $ 7 (14) $ 12 $ 13 (8) ----- ----- ----- ----- Provision For Credit Losses.......... $ (11) $ - - $ (46) $ (1) NM ----- ----- ----- ----- Income Before Taxes $ 61 $ 6 NM $ 118 $ 47 NM Income Taxes............ 8 (6) NM 17 (2) NM ----- ----- ----- ----- Net Income.............. $ 53 $ 12 NM $ 101 $ 49 NM ===== ===== ===== ===== OTHER DATA: Average Assets ($B)..... 3 3 - 3 3 -
CORPORATE ITEMS
($ Millions) Second Quarter % Year-to-Date % 1994 1993(A) Chg 1994 1993(A)Chg ------ ------ --- ------ ------ --- Total Revenue........... $ 246 $ 74 NM $ 366 $ 262 40 ----- ----- ----- ----- Total Operating Expense. $ 109 $ 104 5 $ 212 $ 234 (9) ----- ----- ----- ----- Income (Loss) Before Taxes.................. $ 137 $ (30) NM $ 154 $ 28 NM Income Taxes............ (63) 90 NM 8 280 (97) ----- ----- ----- ----- Net Income (Loss) (B)... $ 200 $ (120) NM $ 146 $ (252) NM ===== ===== ===== ===== (A) Reclassified to conform to current quarter's presentation. (B) Corporate Items includes net after-tax gains (losses) from capital building transactions of $74 million and $88 million for the 1994 second quarter and year-to-date, respectively, and $(14) million and $27 million for the comparable periods of 1993. Additionally, Corporate Items includes the offset created by attributing income taxes to business activities on a local tax basis. Second quarter and year-to-date 1994 amounts also reflect a $150 million tax benefit related to a reduction of the deferred tax asset valuation allowance following a reassessment of the expected level and mix of future earnings. NM Not meaningful as percentage exceeds 100%.
ASSET QUALITY COMMERCIAL CASH-BASIS LOANS AND OREO
($ Millions) 2Q 1Q 4Q 3Q 2Q 1Q 1994 1994 1993 1993 1993 1993 ----- ----- ----- ----- ----- ----- North America Commercial Real Estate.............. $1,495 $1,654 $1,719 $2,138 $2,474 $2,593 Global Finance....... 581 699 755 1,063 1,346 1,267 ----- ----- ----- ----- ----- ----- Commercial Cash- Basis Loans (excl. Refinancing)........ $2,076 $2,353 $2,474 $3,201 $3,820 $3,860 Cross-Border Refinancing(A)...... 165 991 1,041 1,068 1,082 1,242 ----- ----- ----- ----- ----- ----- Total Commercial Cash-Basis Loans.... $2,241 $3,344 $3,515 $4,269 $4,902 $5,102 Commercial OREO...... 2,415 2,598 2,796 3,122 3,479 3,721 ----- ----- ----- ----- ----- ----- Total Commercial Cash-Basis Loans & OREO................ $4,656 $5,942 $6,311 $7,391 $8,381 $8,823 ===== ===== ===== ===== ===== ===== ALLOWANCE FOR CREDIT LOSSES 2Q 1Q 4Q 3Q 2Q 1Q 1994 1994 1993 1993 1993 1993 ----- ----- ----- ----- ----- ----- Global Consumer...... $1,711 $1,639 $1,596 $1,550 $1,491 $1,412 Commercial(B)........ 3,201 2,595 2,545 2,482 2,394 2,296 Cross-Border Refinancing......... - 238 238 228 205 325 ----- ----- ----- ----- ----- ----- Total................ $4,912 $4,472 $4,379 $4,260 $4,090 $4,033 ===== ===== ===== ===== ===== ===== Reserve for Global Consumer Sold Portfolios.... $ 503 $ 538 $ 527 $ 559 $ 557 $ 557 ALLOWANCE AS A PERCENTAGE OF TOTAL LOANS 2Q 1Q 4Q 3Q 2Q 1Q 1994 1994 1993 1993 1993 1993 ----- ----- ----- ----- ----- ----- Global Consumer...... 2.00% 1.98% 1.89% 1.89% 1.83% 1.75% Commercial(B)........ 5.76% 4.88% 4.88% 4.49% 4.35% 4.25% Total................ 3.48% 3.26% 3.15% 3.05% 2.94% 2.92% ADDITIONAL DATA 2Q 1Q 4Q 3Q 2Q 1Q 1994 1994 1993 1993 1993 1993 ----- ----- ----- ----- ----- ----- Commercial Allowance as % of Commercial Cash-Basis Loans(A)(B) 142.8% 110.3% 102.9% 77.5% 62.7% 59.5% Commercial Re- negotiated Loans(C). $ 417 $ 384 $ 708 $ 377 $ 147 $ 136 Consumer OREO........ $1,194 $1,247 $1,212 $1,283 $1,312 $1,314 Consumer Cash-Basis Loans(D). $2,813 $2,904 $2,863 $3,004 $3,102 $3,113 (A) Reflects the transfer of $0.8 billion of Brazil outstandings to Available for Sale Securities in the second quarter of 1994, pursuant to the restructuring agreement completed in the quarter. (B) Effective second quarter 1994, includes amounts related to the Cross-Border Refinancing portfolio. (C) Not included in these amounts are holdings of Brady Bonds issued by the governments of Nigeria and the Philippines. (D) Estimated.
DETAILS OF CREDIT LOSS EXPERIENCE
($ Millions) 2Q 1Q 4Q 3Q 2Q 1Q 1994 1994 1993 1993 1993 1993 ----- ----- ----- ----- ----- ----- NET WRITE-OFFS (RECOVERIES): Global Consumer.... $ 311 $ 328 $ 351 $ 356 $ 367 $ 336 North America Commercial Real Estate........... 63 68 78 49 136 168 Global Finance..... 9 (46) 16 69 36 36 ---- ---- ---- ---- ---- ---- Total Commercial (excl. Refinancing) $ 72 $ 22 $ 94 $ 118 $ 172 $ 204 ---- ---- ---- ---- ---- ---- Cross-Border Refinancing (A)... (329) (35) (10) (23) 120 (26) ---- ---- ---- ---- ---- ---- Total.............. $ 54 $ 315 $ 435 $ 451 $ 659 $ 514 ==== ==== ==== ==== ==== ==== 2Q 1Q 4Q 3Q 2Q 1Q 1994 1994 1993 1993 1993 1993 ----- ----- ----- ----- ----- ----- PROVISION FOR CREDIT LOSSES: Global Consumer..... $ 361 $ 378 $ 414 $ 419 $ 442 $ 411 North America Commercial Real Estate............ 101 106 141 115 186 168 Global Finance...... 21 (34) 16 91 87 111 ---- ---- ---- ---- ---- ---- Total Commercial (excl. Refinancing) $ 122 $ 72 $ 157 $ 206 $ 273 $ 279 ---- ---- ---- ---- ---- ---- Cross-Border Refinancing........ (11) (35) - - - (1) ---- ---- ---- ---- ---- ---- Total............... $ 472 $ 415 $ 571 $ 625 $ 715 $ 689 ==== ==== ==== ==== ==== ==== NET OREO WRITE-DOWNS (RECOVERIES): North America Commercial Real Estate............ $ 12 $ 36 $ 27 $ 73 $ 65 $ 92 Global Finance...... (25) (6) (30) 13 (1) 4 ---- ---- ---- ---- ---- ---- Total............... $ (13) $ 30 $ (3) $ 86 $ 64 $ 96 ==== ==== ==== ==== ==== ==== (A) Includes a credit recovery of $318 million in the second quarter of 1994 as part of the step-up to market value of instruments received pursuant to the Brazil restructuring agreement completed in the quarter.
STATEMENT OF OPERATIONS CITICORP and Subsidiaries
(In Millions of Dollars, Except Per Share Amounts) Second Quarter % Year-to-Date % 1994 1993 Chg 1994 1993 Chg ------ ------- --- ------- ------- --- Interest Revenue....... $6,896 $5,680 21 $13,354 $11,549 16 Interest Expense....... 4,738 3,827 24 9,111 7,849 16 ----- ----- ------ ------ Net Interest Revenue... $2,158 $1,853 16 $ 4,243 $ 3,700 15 ----- ----- ------ ------ Fees & Commissions.... $1,239 $1,253 (1) $ 2,498 $ 2,466 1 Trading Account....... 19 220 (91) 24 437 (95) Foreign Exchange...... 140 352 (60) 206 592 (65) Securities Trans...... 123 32 NM 173 48 NM Other Revenue......... 371 258 44 767 610 26 ----- ----- ------ ------ Total Fees, Commissions and Other Revenue..... $1,892 $2,115 (11) $ 3,668 $ 4,153 (12) ----- ----- ------ ------ TOTAL REVENUE.......... $4,050 $3,968 2 $ 7,911 $ 7,853 1 ----- ----- ------ ------ PROVISION FOR CREDIT LOSSES......... $ 472 $ 715 (34) $ 887 $ 1,404 (37) ----- ----- ------ ------ Operating Expense: Salaries............. $ 974 $ 947 3 $ 1,928 $ 1,860 4 Employee Benefits.... 285 238 20 568 503 13 Net Premises & Equipment Expense.... 370 391 (5) 760 787 (3) Other Expense........ 827 918 (10) 1,647 1,870 (12) ----- ----- ------ ------ TOTAL OPERATING EXPENSE $2,456 $2,494 (2) $ 4,903 $ 5,020 (2) ----- ----- ------ ------ INCOME BEFORE TAXES AND CUMULATIVE EFFECT OF ACCOUNTING CHANGES. $1,122 $ 759 48 $ 2,121 $ 1,429 48 Income Taxes.......... 245 313 (22) 635 613 4 ----- ----- ------ ------ INCOME BEF. CUMULATIVE EFFECT OF ACCTG CHGS.. $ 877 $ 446 97 $ 1,486 $ 816 82 Cumulative Effect of Accounting Changes(A). - - - (56) 300 NM ----- ----- ------ ------ NET INCOME............. $ 877 $ 446 97 $ 1,430 $ 1,116 28 ===== ===== ====== ====== INCOME APPLICABLE TO COMMON STOCK....... $ 790 $ 370 NM $ 1,256 $ 966 30 ===== ===== ====== ====== EARNINGS PER SHARE : On Common & Common Equiv. Shs Income Bef. Cumulative Effect of Acctg Chgs. $ 1.83 $ 0.88 $ 3.07 $ 1.59 Cumulative Effect of Accounting Changes(A) $ - $ - $ (0.13)$ 0.67 Net Income............ $ 1.83 $ 0.88 $ 2.94 $ 2.26 Assuming Full Dilution Income Bef. Cumulative Effect of Acctg Chgs. $ 1.64 $ 0.82 $ 2.77 $ 1.49 Cumulative Effect of Accounting Changes(A) $ - $ - $ (0.11)$ 0.57 Net Income............ $ 1.64 $ 0.82 $ 2.66 $ 2.06 (A) Includes the cumulative effect of adopting SFAS No. 112, "Employers' Accounting for Postemployment Benefits", as of January 1, 1994. The 1993 results include the cumulative effect of adopting SFAS No. 109, "Accounting for Income Taxes", as of January 1, 1993. NM Not meaningful as percentage exceeds 100%.
CONSOLIDATED BALANCE SHEET CITICORP and Subsidiaries
(In Millions of Dollars) June 30 Dec. 31 % 1994 1993(A) Chg -------- -------- --- ASSETS Cash and Due from Banks......... $ 5,542 $ 4,836 15 Deposits at Interest with Banks. 7,720 6,749 14 Securities(B): Held to Maturity............... 5,099 5,637 (10) Available for Sale............. 13,018 8,705 50 Venture Capital................ 1,618 1,489 9 Trading Account Assets(C)....... 51,959 23,783 NM Federal Funds Sold & Securities Purchased Under Resale Agreements........ 9,050 7,339 23 Loans, Net Consumer....................... $ 85,531 $ 84,354 1 Commercial(B).................. 55,561 54,613 2 ------- ------- Total Loans................. $141,092 $138,967 2 Allowance for Credit Losses..... (4,912) (4,379) (12) ------- ------- Total Loans, Net............ $136,180 $134,588 1 Customers' Acceptance Liability $ 1,311 $ 1,512 (13) Premises & Equipment, Net....... 3,945 3,842 3 Interest & Fees Receivable...... 2,716 2,552 6 Other Assets.................... 16,088 15,542 4 ------- ------- Total........................... $254,246 $216,574 17 ======= ======= LIABILITIES Non-Int. Deposits (in the U.S.). $ 13,322 $ 13,442 (1) Int. Deposits (in the U.S.)..... 36,982 38,347 (4) Non-Int. Deposits (Outside the U.S.).......................... 7,660 6,644 15 Int. Deposits(Outside the U.S.). 94,328 86,656 9 ------- ------- Total Deposits.............. $152,292 $145,089 5 Trading Account Liabilities(C).. 32,817 5,478 NM Purchased Funds & Other Borrowings............... 20,748 16,777 24 Acceptances Outstanding......... 1,329 1,531 (13) Accrued Taxes & Other Expenses.. 6,262 6,452 (3) Other Liabilities............... 8,368 9,134 (8) Long-Term Debt.................. 15,058 16,010 (6) Subordinated Capital Notes...... 1,750 2,150 (19) STOCKHOLDERS' EQUITY Preferred Stock (Without Par Value)............ $ 4,062 $ 3,887 5 Common Stock (Par value $1.00).. 417 412 1 Surplus......................... 4,030 3,898 3 Retained Earnings .............. 7,922 6,729 18 Net Unrealized Gains-Securities Available for Sale(B).......... 90 - NA Foreign Currency Translation.... (505) (580) 13 Common Stock in Treasury, at Cost........................ (394) (393) - ------- ------- Total Stockholders' Equity.. $ 15,622 $ 13,953 12 ------- ------- Total........................... $254,246 $216,574 17 ======= ======= (A) Reclassified to conform to current quarter's presentation. (B) Balances at June 30, 1994 include the effect of adopting Statement of Financial Accounting Standards No. 115, "Accounting for Certain Investments in Debt and Equity Securities". Statement No. 115, which requires that securities designated as "available for sale" be carried at fair value with unrealized gains and losses reported in stockholders' equity (net of applicable taxes), was adopted effective January 1, 1994. Pursuant to the adoption of SFAS No. 115, "Brady Bonds" previously included as Commercial Loans are classified as Held to Maturity and Available for Sale Securities. (C) Trading Account Assets and Trading Account Liabilities as of June 30, 1994 include approximately $24.1 billion relating to the adoption of Financial Accounting Standards Board Interpretation No. 39, "Offsetting of Amounts Related to Certain Contracts". Interpretation No. 39 requires that unrealized trading gains and losses be reported gross on the balance sheet except where there is a qualifying netting agreement in place. On a pro-forma basis, Trading Account Assets and Trading Account Liabilities as of December 31, 1993 would have been $36.8 billion and $18.5 billion, respectively, had the new rule been in effect on that date. Amounts presented for Trading Account Assets and Trading Account Liabilities as of December 31, 1993 include the reclassification of $5.7 billion and $3.1 billion, respectively, to provide for consistent presentation of amounts previously recorded in Other Assets and Other Liabilities representing revaluation gains and losses and other balances related to these contracts. NM Not meaningful as percentage exceeds 100%.
ADDITIONAL FINANCIAL DATA
($ Millions) 2Q 1Q 4Q 3Q 2Q 1Q 1994 1994 1993 1993 1993 1993 ------ ------ ------ ------ ------ ------ NET INTEREST REVENUE(A) Net Interest Revenue........ $ 2,170 $ 2,087 $ 2,012 $ 1,986 $ 1,856 $ 1,851 Net Interest Margin......... 4.15% 4.01% 3.94% 3.97% 3.78% 3.82% ADJUSTED TO EXCLUDE THE EFFECT OF CREDIT CARD SECURITIZATION: Net Interest Revenue........ $ 2,710 $ 2,616 $ 2,553 $ 2,567 $ 2,432 $ 2,472 Net Interest Margin......... 4.64% 4.52% 4.48% 4.57% 4.41% 4.52% CONSOLIDATED AVERAGE BALANCES 2Q 1Q 4Q 3Q 2Q 1Q 1994 1994 1993 1993 1993 1993 ------ ------ ------ ------ ------ ------ Loans ($B): Consumer....... $ 84 $ 84 $ 82 $ 81 $ 81 $ 82 Commercial..... 55 54 57 57 58 58 ------ ------ ------ ------ ------ ------ Total Average Loans.......... $ 139 $ 138 $ 139 $ 138 $ 139 $ 140 ====== ====== ====== ====== ====== ====== Total Average Assets ($B)(B). $ 258 $ 253 $ 233 $ 229 $ 227 $ 225 Avg Interest Earning Assets($B)..... $ 210 $ 211 $ 203 $ 199 $ 197 $ 196 Common Stockholders' Equity ($M)(C). $11,049 $10,562 $ 9,728 $ 9,215 $ 8,775 $ 8,364 Preferred Equity ($M).... 3,975 3,887 3,887 3,595 3,266 3,212 ------ ------ ------ ------ ------ ------ Total Average Stockholders' Equity ($M)(C). $15,024 $14,449 $13,615 $12,810 $12,041 $11,576 ====== ====== ====== ====== ====== ====== (A) Taxable Equivalent Basis. (B) The 1994 periods include the effect of adopting FASB Interpretation No. 39, "Offsetting of Amounts Related to Certain Contracts", which is reflected in non-interest earning assets. (C) The 1994 periods include the effect of adopting SFAS No. 115, "Accounting for Certain Investments in Debt and Equity Securities", as of January 1, 1994.
EARNINGS PER SHARE DATA(A) (Before Cumulative Effect of Accounting Change)
($ Millions) Second Quarter Year-to-Date 1994 1993 1994 1993 ------- ------- ------- ------- On Common and Common Equivalent Shares: Earnings.............. $ 813 $ 393 $ 1,359 $ 713 Shares (in thousands). 443,285 447,641 442,272 448,101 Earnings Per Share.... $ 1.83 $ 0.88 $ 3.07 $ 1.59 Assuming Full Dilution: Earnings.............. $ 847 $ 427 $ 1,427 $ 781 Shares (in thousands). 516,760 522,291 515,530 523,496 Earnings Per Share.... $ 1.64 $ 0.82 $ 2.77 $ 1.49 COMMON SHARES OUTSTANDING (In Thousands) End-Of-Period......... 391,281 375,780 (A) For earnings per share on common and common equivalent shares, dividends on Conversion Preferred Stock, Series 15 ($23 million in the second quarter of 1994 and 1993 and $47 million in both year-to-date periods) are added back to income applicable to common stock, and the number of shares issuable on conversion (43 million shares in the second quarter and year-to-date of 1994, 63 million in the second quarter of 1993 and 66 million for the year-to-date 1993) are added back to weighted average shares outstanding. Also added to shares outstanding are other common equivalent shares and, as to the undistributed portion of earnings, book value shares issuable under certain benefit plans. For earnings per share assuming full dilution, dividends on Convertible Preferred Stock, Series 12 and 13 ($34 million in the second quarter of 1994 and 1993 and $68 million in both year-to-date periods) are also added back to income applicable to common stock, and the shares issuable on conversion (73 million shares) are added to shares out- standing. The number of common equivalent and book value shares are calculated on a fully diluted basis as well.
OTHER REVENUE DATA
Second Quarter Year-to-Date 1994 1993(A) 1994 1993(A) ------ ------ ------ ------ OTHER REVENUE ($ Millions) Affiliate Earnings...... $ 52 $ 38 $ 117 $ 79 Securitized Credit Card Receivables....... 236 257 444 501 Net (Losses) from Mortgage Pass-Through Securitization (9) (17) (47) (83) Activity............... Venture Capital Gains... 25 21 104 75 Net Asset Gains(Losses). 51 (25) 81 54 Foreign Currency Translation Gains/ 7 (4) 7 (32) (Losses)............... Other Items............. 9 (12) 61 16 ------ ------ ------- ------ Total................. $ 371 $ 258 $ 767 $ 610 ====== ====== ======= ====== (A) Reclassified to conform to current quarter's presentation.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits - Exhibit No. 12(a) Calculation of Ratio of Income to Fixed Charges - Exhibit No. 12(b) Calculation of Ratio of Income to Fixed Charges Including Preferred Stock Dividends SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CITICORP (Registrant) By: /s/ Thomas E. Jones ------------------------------- Thomas E. Jones Executive Vice President A Principal Financial Officer Dated: July 20, 1994 EX-12 2 EXHIBIT 12.A
CITICORP AND SUBSIDIARIES CALCULATION OF RATIO OF INCOME TO FIXED CHARGES (In Millions) EXCLUDING INTEREST ON DEPOSITS SIX MONTHS ENDED JUNE 30 1993 1992 1991 1990 1989 1994 1993 ------ ------- ------- ------- ------- ------- ----- FIXED CHARGES: INTEREST EXPENSE (OTHER THAN INTEREST ON DEPOSITS) (A) 6,324 5,826 5,973 9,414 11,482 4,052 2,979 INTEREST FACTOR IN RENT EXPENSE 147 162 171 173 161 72 74 ------- ------- ------- ------- ------- ------- ------ TOTAL FIXED CHARGES 6,471 5,988 6,144 9,587 11,643 4,124 3,053 INCOME: ADJUSTED NET INCOME(LOSS) 1,919(B) 722 (914)(C) 318(D) 498 1,486(E) 816(B) INCOME TAXES 941 696 677 508 1,035 635 613 FIXED CHARGES (A) 6,471 5,988 6,144 9,587 11,643 4,124 3,053 ------- ------- ------- ------- ------- ------- ------- TOTAL INCOME 9,331 7,406 5,907 10,413 13,176 6,245 4,482 ======= ======= ======= ======= ======= ======= ======= RATIO OF INCOME TO FIXED CHARGES EXCLUDING INTEREST ON DEPOSITS 1.44 1.24 0.96(F) 1.09 1.13 1.51 1.47 ======= ======= ======= ======= ======= ======= ======= INCLUDING INTEREST ON DEPOSITS: FIXED CHARGES: INTEREST EXPENSE 16,121 16,327 17,089 23,798 24,218 9,111 7,849 INTEREST FACTOR IN RENT EXPENSE 147 162 171 173 161 72 74 ------- ------- ------- ------- ------- ------- ------- TOTAL FIXED CHARGES 16,268 16,489 17,260 23,971 24,379 9,183 7,923 INCOME: NET INCOME(LOSS) 1,919(B) 722 (914)(C) 318(D) 498 1,486(E) 816(B) INCOME TAXES 941 696 677 508 1,035 635 613 FIXED CHARGES 16,268 16,489 17,260 23,971 24,379 9,183 7,923 ------- ------- ------- ------- ------- ------- ------- TOTAL INCOME 19,128 17,907 17,023 24,797 25,912 11,304 9,352 ======= ======= ======= ======= ======= ======= ======= RATIO OF INCOME TO FIXED CHARGES INCLUDING INTEREST ON DEPOSITS 1.18 1.09 0.99(F) 1.03 1.06 1.23 1.18 ======= ======= ======= ======= ======= ======= ====== (A) PRIOR YEARS HAVE BEEN RECLASSIFIED TO CONFORM TO CURRENT YEAR'S PRESENTATION. (B) NET INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1993 AND FULL YEAR 1993 EXCLUDE THE CUMULATIVE EFFECT OF ADOPTING STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO.109, "ACCOUNTING FOR INCOME TAXES", OF $300 MILLION. (C) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1991 EXCLUDES THE CUMULATIVE EFFECT OF ACCOUNTING CHANGE FOR VENTURE CAPITAL INVESTMENTS OF $457 MILLION. (D) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1990 EXCLUDES THE CUMULATIVE EFFECT OF ACCOUNTING CHANGE FOR CERTAIN DERIVATIVE PRODUCTS OF $140 MILLION. (E) NET INCOME FOR THE SIX MONTHS ENDED JUNE 30,1994 EXCLUDES THE CUMULATIVE EFFECT OF ADOPTING STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 112, "EMPLOYERS' ACCOUNTING FOR POSTEMPLOYMENT BENEFITS", OF $(56) MILLION. (F) EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1991 WERE INADEQUATE TO COVER FIXED CHARGES BY THE AMOUNT OF $237 MILLION.
EX-12 3 EXHIBIT 12.B
CITICORP AND SUBSIDIARIES CALCULATION OF RATIO OF INCOME TO FIXED CHARGES INCLUDING PREFERRED STOCK DIVIDENDS (In Millions) SIX MONTHS EXCLUDING INTEREST ON DEPOSITS ENDED JUNE 30 1993 1992 1991 1990 1989 1994 1993 ------- ------- ------- ------- ------- ------- ------- FIXED CHARGES: INTEREST EXPENSE (OTHER THAN INTEREST ON DEPOSITS)(A) 6,324 5,826 5,973 9,414 11,482 4,052 2,979 INTEREST FACTOR IN RENT EXPENSE 147 162 171 173 161 72 74 DIVIDENDS - PREFERRED STOCK 465 416 271(B) 361 385 283 259 ------- ------- ------- ------- ------- ------- ------- TOTAL FIXED CHARGES 6,936 6,404 6,415 9,948 12,028 4,407 3,312 INCOME: NET INCOME(LOSS) 1,919(C) 722 (914)(D) 318(E) 498 1,486(F) 816(C) INCOME TAXES 941 696 677 508 1,035 635 613 FIXED CHARGES (EXCLUDING PREFERRED STOCK DIVIDENDS)(A) 6,471 5,988 6,144 9,587 11,643 4,124 3,053 ------- ------- ------- ------- ------- ------- ------- TOTAL INCOME 9,331 7,406 5,907 10,413 13,176 6,245 4,482 ======= ======= ======= ======= ======= ======= ======= RATIO OF INCOME TO FIXED CHARGES EXCLUDING INTEREST ON DEPOSITS 1.35 1.16 0.92(G) 1.05 1.10 1.42 1.35 ======= ======= ======= ======= ======= ======= ======= INCLUDING INTEREST ON DEPOSITS: FIXED CHARGES: INTEREST EXPENSE 16,121 16,327 17,089 23,798 24,218 9,111 7,849 INTEREST FACTOR IN RENT EXPENSE 147 162 171 173 161 72 74 DIVIDENDS - PREFERRED STOCK 465 416 271(B) 361 385 283 259 ------- ------- ------- ------- ------- ------ ------ TOTAL FIXED CHARGES 16,733 16,905 17,531 24,332 24,764 9,466 8,182 INCOME: NET INCOME(LOSS) 1,919(C) 722 (914)(D) 318(E) 498 1,486(F) 816(C) INCOME TAXES 941 696 677 508 1,035 635 613 FIXED CHARGES (EXCLUDING PREFERRED STOCK DIVIDENDS) 16,268 16,489 17,260 23,971 24,379 9,183 7,923 ------- ------- ------- ------- ------- ------- ------ TOTAL INCOME 19,128 17,907 17,023 24,797 25,912 11,304 9,352 ======= ======= ======= ======= ======= ======= ====== RATIO OF INCOME TO FIXED CHARGES INCLUDING INTEREST ON DEPOSITS 1.14 1.06 0.97(G) 1.02 1.05 1.19 1.14 ======= ======= ======= ======= ====== ======= ====== (A) PRIOR YEARS HAVE BEEN RECLASSIFIED TO CONFORM TO CURRENT YEAR'S PRESENTATION. (B) CALCULATED ON A BASIS OF AN ASSUMED TAX RATE OF OF 34%. (C) NET INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1993 AND FULL YEAR 1993 EXCLUDE THE CUMULATIVE EFFECT OF ADOPTING STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 109, "ACCOUNTING FOR INCOME TAXES", OF $300 MILLION. (D) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1991 EXCLUDES THE CUMULATIVE EFFECT OF ACCOUNTING CHANGE FOR VENTURE CAPITAL INVESTMENTS OF $457 MILLION. (E) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1990 EXCLUDES THE CUMULATIVE EFFECT OF ACCOUNTING CHANGE FOR CERTAIN DERIVATIVE PRODUCTS OF $140 MILLION. (F) NET INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1994 EXCLUDES THE CUMULATIVE EFFECT OF ADOPTING STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 112, "EMPLOYERS' ACCOUNTING FOR POSTEMPLOYMENT BENEFITS", OF $(56) MILLION. (G) EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1991 WERE INADEQUATE TO COVER FIXED CHARGES BY THE AMOUNT OF $508 MILLION.
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