-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NMRi6EZnZpP5cdg4BcwAAFVK2fMCdIFJW+jZLMlETuTR3RQr+rbQPXYYPwCwIN8J 6Cal7zm1tKkIPO8J1gojNA== 0000020405-95-000099.txt : 19951023 0000020405-95-000099.hdr.sgml : 19951023 ACCESSION NUMBER: 0000020405-95-000099 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19951017 ITEM INFORMATION: Bankruptcy or receivership FILED AS OF DATE: 19951020 SROS: CSX SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CITICORP CENTRAL INDEX KEY: 0000020405 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [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: 001-05378 FILM NUMBER: 95582973 BUSINESS ADDRESS: STREET 1: 399 PARK AVE CITY: NEW YORK STATE: NY ZIP: 10043 BUSINESS PHONE: 2125591000 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 OCTOBER 1995 8K 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): October 17, 1995 Citicorp (Exact name of registrant as specified in charter) Delaware 1-5738 13-2614988 (State or other jurisdiction (IRS Employer of incorporation) (Commission File Number) Identification 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 CITICORP REPORTS 10% PRETAX EARNINGS GAIN LED BY CONSUMER BUSINESS KEY RESULTS ($ MILLIONS, EXCEPT PER-SHARE) THIRD QUARTER NINE MONTHS 1995 1994 CHANGE 1995 1994 CHANGE ------- ------- ------ ------- ------- ------ TOTAL ADJUSTED REVENUE ......... $ 4,983 $ 4,568 9% $14,571 $12,931 13% EARNINGS BEFORE INCOME TAXES .... 1,388 1,259 10 4,145 3,380 23 NET INCOME ......... 877 894 (2) 2,559 2,324 10 NET INCOME PER SHARE (FULLY DILUTED) . 1.62 1.67 (3) 4.72 4.33 9 RETURN ON TOTAL EQUITY .......... 17.9% 22.0% 18.2% 20.6% On October 17,1995 Citicorp reported net income of $877 million in the 1995 third quarter, 2% lower than in the same 1994 quarter, when there was a higher level of tax benefits. Earnings before income taxes were 10% higher in the 1995 third quarter than in the comparable year-ago quarter. "The global franchise continued to generate strong revenue growth, while operating expenses held to second quarter levels," commented John S. Reed, Chairman. "Our consumer business, with quarterly earnings exceeding $500 million for the first time, showed continuing franchise momentum around the world." "Importantly, return on equity for both the quarter and nine months was maintained at 18%," Mr. Reed added. The results in the third quarter reflected the following factors, all compared with the same 1994 quarter: * Operating margin (revenue adjusted primarily for the effect of credit card securitizations, less adjusted expense) of $2.2 billion rose 11%, and the expense/revenue ratio improved to 56.7%. The effect of translating various currencies into the U.S. dollar increased revenue by 1% and operating expense by approximately 2%. * The $415 million rise in revenue included a 9% increase in the global consumer business, led by credit cards and branch-based banking services, and a 4% increase in the global finance businesses, led by trading and transaction banking. * The 6% increase in operating expense beyond the 2% from currency translation resulted chiefly from spending related to ongoing business expansion and performance-based compensation. * Consumer credit costs of $633 million increased by $89 million, reflecting primarily volume growth in the U.S. card portfolio as well as the effects of continued economic weakness that began earlier in the year in major Latin American markets. Commercial credit costs, including real estate, increased by $21 million to $61 million. Citicorp, continuing the $3 billion stock repurchase program announced in June 1995, repurchased 11.4 million common shares in the third quarter for $750 million. Since the program started, 12.3 million common shares have been repurchased for $800 million. Reserves, which totaled $5.3 billion, were built by $75 million in the quarter. Total capital at September 30, 1995 amounted to $27.3 billion -- with the Tier 1 ratio estimated to be 8.4%, slightly above the target range -- and common equity as a percentage of total assets was 6.3%. GLOBAL CONSUMER BUSINESS ($ MILLIONS) THIRD QUARTER NINE MONTHS 1995 1994 CHANGE 1995 1994 CHANGE ---- ---- ------ ---- ---- ------ TOTAL ADJUSTED REVENUE ................ $3,128 2,863 9% $9,077 $8,376 8% TOTAL OPERATING EXPENSE ................ 1,679 1,564 7 5,006 4,556 10 OPERATING MARGIN .......... 1,449 1,299 12 4,071 3,820 7 CREDIT COSTS .............. 633 544 16 1,785 1,743 2 NET INCOME ................ 522 475 10 1,426 1,308 9 Global consumer revenue grew by $265 million, consisting of an increase of $152 million, or 7%, from the developed economies and $113 million, or 17%, from the emerging markets. Revenue advances were led by expansion in card receivable volumes and branch-based banking. Expenses were 7% higher than in the same 1994 quarter but were kept slightly below 1995 second quarter levels, even with continuing programs to support delivery to more customers of the array of products and services that constitute the distinctive Citibank experience. The 10% earnings improvement, led by branch banking worldwide and cards in the Asia Pacific region, reflected increases in the emerging markets of $33 million, or 20%, to $201 million and in the developed countries of $14 million, or 5%, to $321 million. In the 1995 nine-month period, earnings from the global consumer business rose 9%, to $1.4 billion, from the same 1994 period. At 56 million, the number of cards worldwide was 9% higher than in the same 1994 quarter, led by growth in the United States and the Asia Pacific region. Charge volume on Citicorp-issued cards in Asia Pacific was up 41% and on U.S. bankcards up 23%. Managed card receivables grew by 19% in U.S. bankcards, 40% in Asia Pacific, and 44% in Europe. Asia Pacific experienced a record level of card applications in the quarter. The U.S. bankcard business continued to expand its position in the category, behind programs initiated last year. Managed receivables increased $6.7 billion to $42.1 billion, and total accounts 3.0 million to 24.8 million from September 30, 1994. Total charge volume increased by $4.1 billion to $22.1 billion. The program continued in the quarter to bring Citibank branches to the model standard that provides a consistent Citibank look and experience around the world. The conversion of existing offices and the opening of new ones included opening the first model branch in Japan. At the end of the quarter there were 384 model branches, comprising 32% of the total 1,200 consumer branches. Customer response to the Citibank offerings was strong in the quarter, particularly in enrollments to use electronic banking through ATMs, Citiphone or direct computer access. The overall consumer loss rate of 2.02% of managed loans remained at the low end of a normal loss range, up slightly from 1.98% in the 1995 second quarter and 1.90% in the 1994 third quarter, as losses increased in Latin America and card receivables grew as a proportion of the consumer credit portfolio. The worldwide cards loss rate of 3.78% compared with 3.76% in the 1995 second quarter and 3.59% in the 1994 third quarter. The U.S. managed credit card loss rate of 3.72% improved slightly from the 3.74% in the 1995 second quarter, but was up from 3.57% in last year's third quarter. The loss rate in branch banking worldwide was 1.14%, essentially unchanged, chiefly because improvement in the U.S. branch business, particularly mortgages, was offset by losses in Latin America. Assets under management in private banking rose to $85.4 billion, an increase of 8% from a year earlier. In the quarter, Citicorp broadened the market for securities backed by U.S. card receivables by issuing the first such security in the Japanese market. GLOBAL FINANCE BUSINESSES ($ MILLIONS) THIRD QUARTER NINE MONTHS 1995 1994 CHANGE 1995 1994 CHANGE ---- ---- ------ ---- ---- ------ TOTAL ADJUSTED REVENUE $1,543 $1,477 4% $4,698 $3,934 19% TOTAL OPERATING EXPENSE 994 911 9 2,930 2,544 15 OPERATING MARGIN 549 566 (3) 1,768 1,390 27 CREDIT COSTS (RECOVERIES) 36 (60) NM 23 (126) NM NET INCOME 351 431 (19) 1,224 973 26 Net income of $351 million from global finance worldwide businesses was down $80 million from the 1994 third quarter, although nine-month earnings of $1.2 billion were up $251 million. Revenue, rising 4% in the quarter, reflected primarily increases in trading revenues -- which benefited from an active customer environment -- as well as transaction banking services and other nontrading business in emerging markets, and venture capital results. The total of foreign exchange and trading revenue increased by $132 million, but net interest revenue related to trading declined by $77 million. Expense increases reflected continued investment in processing efficiencies, principally related to transaction banking services. Global finance activities in the developed markets earned $133 million in the quarter, which was down $42 million from the 1994 third quarter, and earned $497 million in the nine months, which was up $126 million. Revenues increased 8% from the 1994 third quarter, led by trading and venture capital, partially offset by lower fees (although the pipeline of deals remains strong) and the effect of business restructurings aimed at improving overall returns. Credit costs of $20 million compared with a positive $71 million in the 1994 third quarter. Average assets in the quarter of $86 billion were reduced $9 billion from the 1995 second quarter and $14 billion from the same 1994 quarter, largely from a lower level of trading-related assets. In emerging markets, global finance net income of $218 million was down $38 million from the year-earlier quarter (when Brazilian earnings benefited from an unusually favorable rate environment and the release of a revenue-related tax reserve). In the nine months net income from emerging markets was $727 million, up $125 million. Revenue was flat compared with the 1994 third quarter, as growth from continued business momentum, particularly from multinational clients and transaction banking services, was offset by lower trading-related revenues, due in part to decreasing volatility in Latin American markets through the quarter. Credit costs at $16 million remained modest in the quarter. In the quarter, Citibank opened a corporate business branch in South Africa and a representative office in Romania. The People's Republic of China has given approval for Citibank to reopen branch operations in Beijing, which is scheduled for October 31. In Turkey Citibank set up a brokerage house to expand capital markets services to customers in that country. The capital markets unit completed its first global equity underwriting in multiple markets, for a Chilean supermarket company, Santa Isabel, S.A. In the United States, the electronic benefits transfer business added two more states as clients, bringing to seven the number of states for which it provides disbursement services to benefits recipients. OTHER North America Commercial Real Estate reported a loss of $6 million in the 1995 third quarter, compared with a loss of $86 million in the same 1994 quarter, with the improvement resulting from substantially lower credit costs. Total commercial cash-basis loans and Other Real Estate Owned (OREO) of $2.6 billion at September 30, 1995, including $1.8 billion related to North America Commercial Real Estate, were down substantially from $4.3 billion a year earlier. The cross-border refinancing portfolio reported net income of $43 million, compared with $45 million in the year-earlier quarter. Corporate items reported a net loss of $33 million, compared with net income of $29 million in the same 1994 quarter. The key factor in these results was a significantly lower level of tax benefits. INCOME TAXES The effective tax rate was 37% in the 1995 third quarter, which benefited by $30 million reflecting a reduction of the deferred tax valuation allowance from a reassessment of the expected level and mix of future earnings. This compared with 29% in the same 1994 quarter, which included recognition of $124 million of tax benefits related to current operations. The effective tax rates on current operations for the nine-month periods were 39% in 1995 and 34% in 1994. CAPITAL AND RESERVES In the third quarter, as in the first and second quarters, an additional $75 million above net credit write-offs was provided to reserves, bringing the credit loss reserve on the balance sheet to $5.3 billion at September 30, 1995, up from $5.1 billion at September 30, 1994. Total regulatory capital at September 30, 1995 was $27.3 billion, estimated to be 12.3% of risk-adjusted assets. The Tier 1 capital ratio was estimated to be 8.4%, which compares with 7.5% at September 30, 1994 and 8.4% at June 30, 1995. Citicorp on October 12 notified holders of its Conversion Preferred Stock, Series 15 (commonly called PERCS) that it will redeem the shares remaining after two redemptions earlier in the year, one in the second and the other in the third quarter. Upon completion of the redemption on November 13, Citicorp will have issued approximately 27.5 million shares of common stock for the redemption of the PERCS, which had been issued in October 1992 to raise approximately $1.1 billion of Tier 1 capital. In addition, in the 1995 third quarter Citicorp issued approximately 10.6 million common shares for the conversion of 3.9 million depositary shares, or 29%, of its Conversion Preferred Stock, Series 13. Tables detailing key financial data, an analysis of operating margin, pretax earnings, business results and credit indicators follow, along with financial statements. Further details concerning the financial results will be available in November in Citicorp's Form 10-Q. Page 8 - Citicorp Third Quarter 1995 results - 10/17/95 KEY RATIOS & OTHER CONSOLIDATED FINANCIAL DATA Third Quarter Nine Months 1995 1994 1995 1994 ------ ------ ------ ------ NET INCOME ($M): Before Cumulative Effect of Accounting Change..... $ 877 $ 894 $2,559 $2,380 After Cumulative Effect of Accounting Change(A).. 877 894 2,559 2,324 NET INCOME PER COMMON SHARE: On Common & Common Equivalent Shares Before Cumulative Effect of Accounting Change..... $ 1.79 $ 1.87 $ 5.29 $ 4.95 After Cumulative Effect of Accounting Change(A).. 1.79 1.87 5.29 4.82 Assuming Full Dilution Before Cumulative Effect of Accounting Change..... $ 1.62 $ 1.67 $ 4.72 $ 4.44 After Cumulative Effect of Accounting Change(A).. 1.62 1.67 4.72 4.33 COMMON STOCKHOLDERS' EQUITY PER SHARE................. $37.99 $32.43 CLOSING STOCK PRICE AT QUARTER END............ $70.75 $42.50 PROFITABILITY RATIOS (Annualized): Return on Total Assets: Before Accounting Change.. 1.31% 1.34% 1.27% 1.23% After Accounting Change(A) 1.31 1.34 1.27 1.21 Return on Common Stockholders' Equity: Before Accounting Change.. 20.1% 26.5% 20.9% 25.2% After Accounting Change(A) 20.1 26.5 20.9 24.7 Return on Total Stockholders' Equity: Before Accounting Change.. 17.9% 22.0% 18.2% 20.9% After Accounting Change(A) 17.9 22.0 18.2 20.6 CAPITAL: Tier 1 ($B)............... $ 18.6 $ 16.0 Tier 1 & 2 ($B)(B)........ 27.3 25.4 Tier 1 Ratio(B)........... 8.4% 7.5% Tier 1 & 2 Ratio(B)....... 12.3 11.9 Common Equity as a % of Total Assets....... 6.3% 5.0% Total Equity as a % of Total Assets....... 7.6% 6.7% DIVIDENDS DECLARED ($M): Common.................. $ 127 $ 59 $ 365 $ 117 Preferred............... 83 89 271 267 (A) The 1994 results reflect the cumulative effect of adopting SFAS No. 112, "Employers' Accounting for Postemployment Benefits," as of January 1, 1994. (B) 1995 Estimated. Page 9 - Citicorp Third Quarter 1995 results - 10/17/95 OPERATING MARGIN ($ Millions) Third Quarter Nine Months 1995 1994 1995 1994 ------ ------ ------ ------ Total Revenue ........... $4,757 $4,325 $13,889 $12,236 Effect of Credit Card Securitization.......... 219 213 667 745 Net Cost to Carry(A)..... 7 30 15 90 Capital Building Transactions............ - - - (140) ----- ----- ------ ------ Adjusted Revenue......... 4,983 4,568 14,571 12,931 ----- ----- ------ ------ Total Operating Expense.. 2,793 2,630 8,284 7,533 Net OREO Costs (B)....... 33 (5) 46 (14) ----- ----- ------ ------ Adjusted Operating Expense................. 2,826 2,625 8,330 7,519 ----- ----- ------ ------ Operating Margin......... 2,157 1,943 6,241 5,412 Consumer Credit Costs (C)............... 633 544 1,785 1,743 Commercial Credit Costs (D)............... 61 40 86 173 ----- ----- ------ ------ Operating Margin Less Credit Costs....... 1,463 1,359 4,370 3,496 Additional Provision: - -Consumer(E)............. 50 50 150 150 - -Commercial(E)........... 25 50 75 150 - -Refinancing Portfolio... - - - (44) Capital Building Transactions............ - - - 140 ----- ----- ------ ------ Income Before Taxes and Cumulative Effect of Accounting Change...... $1,388 $1,259 $ 4,145 $ 3,380 ===== ===== ====== ====== (A) Principally the net cost to carry commercial cash-basis loans and Other Real Estate Owned (OREO). (B) Principally writedowns, gains and losses on sales, and direct revenue and expense related to commercial OREO. (C) Principally consumer net credit write-offs adjusted for the effect of credit card receivables securitization. (D) Includes commercial net credit write-offs, net cost to carry, and net OREO costs. (E) Represents provision for credit losses in excess of net write-offs. Page 10 - Citicorp Third Quarter 1995 results - 10/17/95 BUSINESS FOCUS Net Income (Loss) ($ Millions) Third Quarter Nine Months 1995 1994(A) 1995 1994(A) ------ ------ ------ ------ Global Consumer: North America, Europe and Japan............ $ 321 $ 307 $ 847 $ 810 Emerging Markets....... 201 168 579 498 ----- ----- ----- ----- Total Global Consumer... 522 475 1,426 1,308 ----- ----- ----- ----- Global Finance: North America, Europe and Japan............ 133 175 497 371 Emerging Markets....... 218 256 727 602 ----- ----- ----- ----- Total Global Finance.... 351 431 1,224 973 ----- ----- ----- ----- Core Businesses......... 873 906 2,650 2,281 ----- ----- ----- ----- North America Commercial Real Estate........... (6) (86) (18) (233) Cross-Border Refinancing Portfolio............. 43 45 143 148 Corporate Items(B)...... (33) 29 (216) 184 ----- ----- ----- ----- 877 894 2,559 2,380 Cumulative Effect of Accounting Change(C).. - - - (56) ----- ----- ----- ----- Total Citicorp.......... $ 877 $ 894 $2,559 $ 2,324 ===== ===== ===== ===== (A) Reclassified to conform to current quarter's presentation. (B) See Corporate Items section for details. (C) The 1994 results reflect the cumulative effect of adopting SFAS No. 112, "Employers' Accounting for Postemployment Benefits," as of January 1, 1994. Page 11 - Citicorp Third Quarter 1995 results - 10/17/95 GLOBAL CONSUMER ($ Millions) Third Quarter % Nine Months % 1995 1994(A)Chg 1995 1994(A)Chg ------ ------ --- ------ ------ --- Total Revenue......... $2,906 $2,647 10 $8,400 $7,625 10 ----- ----- ----- ----- Total Operating Expense 1,675 1,577 6 5,011 4,594 9 ----- ----- ----- ----- Provision For Credit Losses ....... 465 365 27 1,253 1,104 13 ----- ----- ----- ----- Income Before Taxes... 766 705 9 2,136 1,927 11 Income Taxes.......... 244 230 6 710 619 15 ----- ----- ----- ----- Net Income............ $ 522 $ 475 10 $1,426 $1,308 9 ===== ===== ===== ===== Average Assets ($B)... $ 121 $ 107 13 $ 119 $ 104 14 Return on Assets...... 1.71% 1.76% - 1.60% 1.68% - OTHER DATA: North America, Europe and Japan: Net Income............ $ 321 $ 307 5 $ 847 $ 810 5 Average Assets($B).... 86 77 12 85 75 13 Return on Assets...... 1.48% 1.58% - 1.33% 1.44% - Emerging Markets: Net Income............ $ 201 $ 168 20 $ 579 $ 498 16 Average Assets($B).... 35 30 17 34 29 17 Return on Assets...... 2.28% 2.22% - 2.28% 2.30% - Adjusted for Credit- Related Items: Total Revenue(B): North America, Europe and Japan.. $2,354 $2,202 7 $6,836 $6,487 5 Emerging Markets... 774 661 17 2,241 1,889 19 ----- ----- ----- ----- Total Global Consumer $3,128 $2,863 9 $9,077 $8,376 8 ===== ===== ===== ===== Other Operating Expense(C): North America, Europe and Japan.. $1,253 $1,189 5 $3,764 $3,500 8 Emerging Markets... 426 375 14 1,242 1,056 18 ----- ----- ----- ----- Total Global Consumer $1,679 $1,564 7 $5,006 $4,556 10 ===== ===== ===== ===== Credit Costs (D): North America, Europe and Japan.. $ 548 $ 499 10 $1,594 $1,620 (2) Emerging Markets... 85 45 89 191 123 55 ----- ----- ----- ----- Total Global Consumer $ 633 $ 544 16 $1,785 $1,743 2 ===== ===== ===== ===== (A) Reclassified to conform to current quarter's presentation. (B) Adjusted principally for the effect of credit card receivables securitization. (C) Excludes writedowns, gains and losses on sales, and direct revenue and expense related to OREO for certain real estate lending activities. (D) Principally net credit write-offs adjusted for the effect of credit card receivables securitization. Includes U.S. credit card net credit losses for both held and securitized receivables of $384 million and $1,087 million for the 1995 third quarter and year-to-date, respectively, and $310 million and $1,035 million for the comparable periods of 1994. Page 12 - Citicorp Third Quarter 1995 results - 10/17/95 GLOBAL FINANCE ($ Millions) Third Quarter % Nine Months % 1995 1994(A) Chg 1995 1994(A) Chg ------ ------ --- ------ ------ --- Total Revenue......... $1,548 $1,474 5 $4,714 $3,919 20 ----- ----- ----- ----- Total Operating Expense.............. 986 889 11 2,912 2,481 17 ----- ----- ----- ----- Provision For Credit Losses ....... 74 (28) NM 132 (41) NM ----- ----- ----- ----- Income Before Taxes... 488 613 (20) 1,670 1,479 13 Income Taxes.......... 137 182 (25) 446 506 (12) ----- ----- ----- ----- Net Income............ $ 351 $ 431 (19) $1,224 $ 973 26 ===== ===== ===== ===== Average Assets ($B)... $ 133 $ 144 (8) $ 138 $ 138 - Return on Assets...... 1.05% 1.19% - 1.19% 0.94% - OTHER DATA: North America, Europe and Japan: Net Income............ $ 133 $ 175 (24) $ 497 $ 371 34 Average Assets($B).... 86 100 (14) 92 96 (4) Return on Assets...... 0.61% 0.69% - 0.72% 0.52% - Emerging Markets: Net Income............ $ 218 $ 256 (15) $ 727 $ 602 21 Average Assets($B).... 47 44 7 46 42 10 Return on Assets...... 1.84% 2.31% - 2.11% 1.92% - Adjusted for Credit- Related Items: Total Revenue(B): North America, Europe and Japan.. $ 881 $ 813 8 $2,690 $2,213 22 Emerging Markets... 662 664 - 2,008 1,721 17 ----- ----- ----- ----- Total Global Finance. $1,543 $1,477 4 $4,698 $3,934 19 ===== ===== ===== ===== Other Operating Expense(C): North America, Europe and Japan.. $ 653 $ 608 7 $1,930 $1,697 14 Emerging Markets... 341 303 13 1,000 847 18 ----- ----- ----- ----- Total Global Finance. $ 994 $ 911 9 $2,930 $2,544 15 ===== ===== ===== ===== Credit Costs (D): North America, Europe and Japan.. $ 20 $ (71) NM $ (10) $ (132) 92 Emerging Markets... 16 11 45 33 6 NM ----- ----- ----- ----- Total Global Finance. $ 36 $ (60) NM $ 23 $ (126) NM ===== ===== ===== ===== (A) Reclassified to conform to current quarter's presentation. (B) Adjusted for the net cost to carry cash-basis loans and OREO. (C) Excludes writedowns, gains and losses on sales, and direct revenue and expense related to OREO. (D) Includes net write-offs (recoveries), the net cost to carry cash-basis loans and OREO, as well as net OREO costs. NM Not meaningful,as percentage exceeds 100%. Page 13 - Citicorp Third Quarter 1995 results - 10/17/95 NORTH AMERICA COMMERCIAL REAL ESTATE ($ Millions) Third Quarter % Nine Months % 1995 1994(A) Chg 1995 1994(A) Chg ------ ------ --- ------ ------ --- Total Revenue......... $ 39 $ 10 NM $ 118 $ 56 NM ----- ----- ----- ----- Total Operating Expense.............. 10 49 (80) 61 146 (58) ----- ----- ----- ----- Provision For Credit Losses........ 37 99 (63) 75 306 (75) ----- ----- ----- ----- Loss Before Taxes..... (8) (138) 94 (18) (396) 95 Income Tax Benefit.... (2) (52) 96 - (163) NM ----- ----- ----- ----- Net Loss.............. $ (6) $ (86) 93 $ (18) $ (233) 92 ===== ===== ===== ===== OTHER DATA: Average Assets ($B)... $ 5 $ 8 (38) $ 5 $ 9 (44) Adjusted for Credit- Related Items: Total Revenue(B).... $ 48 $ 34 41 $ 139 $ 125 11 Total Operating Expense(C)......... 31 35 (11) 94 107 (12) Credit Costs(D)..... 25 100 (75) 63 301 (79) (A) Reclassified to conform to current quarter's presentation. (B) Adjusted for the net cost to carry cash-basis loans and OREO. (C) Excludes writedowns, gains and losses on sales, and direct revenue and expense related to OREO. (D) Includes net write-offs, the net cost to carry cash-basis loans and OREO, as well as net OREO costs. NM Not meaningful, as percentage exceeds 100%. Page 14 - Citicorp Third Quarter 1995 results - 10/17/95 CROSS-BORDER REFINANCING PORTFOLIO ($ Millions) Third Quarter % Nine Months % 1995 1994(A) Chg 1995 1994(A) Chg ------ ------ --- ------ ------ --- Total Revenue......... $ 55 $ 53 4 $ 178 $ 135 32 ----- ----- ----- ----- Total Operating Expense.............. 4 4 - 12 12 - ----- ----- ----- ----- Provision For Credit Losses........ - - - - (46) NM ----- ----- ----- ----- Income Before Taxes... 51 49 4 166 169 (2) Income Taxes.......... 8 4 NM 23 21 10 ----- ----- ----- ----- Net Income ........... $ 43 $ 45 (4) $ 143 $ 148 (3) ===== ===== ===== ===== OTHER DATA: Average Assets ($B)... $ 3 $ 3 - $ 3 $ 3 - CORPORATE ITEMS ($ Millions) Third Quarter % Nine Months % 1995 1994(A) Chg 1995 1994(A) Chg ----- ------ --- ----- ------ --- Total Revenue......... $ 209 $ 141 48 $ 479 $ 501 (4) ----- ----- ----- ----- Total Operating Expense.............. 118 111 6 288 300 (4) ----- ----- ----- ----- Income Before Taxes... 91 30 NM 191 201 (5) Income Taxes.......... 124 1 NM 407 17 NM ----- ----- ----- ----- Net (Loss) Income (B). $ (33) $ 29 NM $ (216) $ 184 NM ===== ===== ===== ===== (A) Reclassified to conform to current quarter's presentation. (B) Corporate Items includes net after-tax gains from capital building transactions of $88 million ($140 million before taxes) for the nine months of 1994. Additionally, Corporate Items includes the offset created by attributing income taxes to business activities on a local tax basis. Third quarter and nine months ended 1995 includes $30 million in deferred tax benefits compared to $124 million and $344 million in the respective 1994 periods. NM Not meaningful, as percentage equals or exceeds 100%. Page 15 - Citicorp Third Quarter 1995 results - 10/17/95 ASSET QUALITY COMMERCIAL CASH-BASIS LOANS AND OREO ($ Millions) 3Q 2Q 1Q 4Q 3Q 1995 1995 1995 1994 1994 ------ ------ ------ ------ ------ Comm'l Cash-Basis Loans: Collateral-Dependent (At lower of cost or collateral value).... $ 899 $1,040 $1,329 $1,347 $ 1,993 Other................. 751 582 654 666 736 ----- ----- ----- ----- ------ Comm'l Cash-Basis Loans (excluding Refinancing) 1,650 1,622 1,983 2,013 2,729 Cross-Border Refinancing.......... 24 30 58 104 140 ----- ----- ----- ----- ------ Total Commercial Cash-Basis Loans...... 1,674 1,652 2,041 2,117 2,869 Commercial OREO........ 960 1,054 1,014 958 1,427 ----- ----- ----- ----- ------ Total Commercial Cash-Basis Loans & OREO $2,634 $2,706 $3,055 $3,075 $ 4,296 ===== ===== ===== ===== ====== ALLOWANCE FOR CREDIT LOSSES 3Q 2Q 1Q 4Q 3Q 1995 1995 1995 1994 1994 ------ ------ ------ ----- ----- Global Consumer........ $1,931 $1,923 $1,897 $1,834 $ 1,790 Commercial............. 3,410 3,385 3,373 3,321 3,270 ----- ----- ----- ----- ------ Total.................. $5,341 $5,308 $5,270 $5,155 $ 5,060 ===== ===== ===== ===== ====== Reserve for Global Consumer Sold Portfolios....... $ 473 $ 467 $ 450 $ 422 $ 467 ALLOWANCE AS A PERCENTAGE OF TOTAL LOANS 3Q 2Q 1Q 4Q 3Q 1995 1995 1995 1994 1994 ------ ------ ------ ----- ------ Global Consumer........ 1.88% 1.91% 1.93% 1.90% 1.97% Commercial............. 5.89 5.90 5.79 5.95 5.90 Total.................. 3.32% 3.36% 3.37% 3.38% 3.46% ADDITIONAL DATA 3Q 2Q 1Q 4Q 3Q 1995 1995 1995 1994 1994 Commercial Allowance ------ ----- ------ ------ ------ as a % of Total Commercial Cash-Basis Loans...... 204% 205% 165% 157% 114% Commercial Allowance as a % of Non-Collateral- Dependent Commercial Cash-Basis Loans...... 440% 553% 474% 431% 373% Commercial Renegotiated Loans................. $ 395 $ 385 $ 338 $ 718 $ 524 Consumer Cash-Basis: Loans................ $2,665 $2,697 $2,693 $2,604 $ 2,772 Assets Pending Disposition (At lower of cost or collateral value).............. $ 195 $ 195 $ 209 $ 195 $ 163 Consumer OREO ......... $ 561 $ 545 $ 601 $ 569 $ 565 Page 16 - Citicorp Third Quarter 1995 results - 10/17/95 DETAILS OF CREDIT LOSS EXPERIENCE ($ Millions) 3Q 2Q 1Q 4Q 3Q 1995 1995 1995 1994 1994 ------ ------ ------ ------ ------ NET WRITE-OFFS (RECOVERIES): Global Consumer ...... $ 415 $ 379 $ 309 $ 399 $ 315 North America Commercial Real Estate......... 37 22 16 51 62 Global Finance........ 49 17 (9) 28 (41) ----- ----- ----- ----- ----- Total Commercial (excluding Refinancing)........ 86 39 7 79 21 ----- ----- ----- ----- ----- Cross-Border Refinancing.......... - 13 (23) (20) (19) ----- ----- ----- ----- ----- Total................. $ 501 $ 431 $ 293 $ 458 $ 317 ===== ===== ===== ===== ===== 3Q 2Q 1Q 4Q 3Q 1995 1995 1995 1994 1994 ------ ----- ----- ----- ----- PROVISION FOR CREDIT LOSSES: Global Consumer....... $ 465 $ 429 $ 359 $ 449 $ 365 North America Commercial Real Estate......... 37 22 16 88 99 Global Finance........ 74 42 16 41 (28) ----- ----- ----- ----- ----- Total Commercial (excluding Refinancing)........ 111 64 32 129 71 ----- ----- ----- ----- ----- Cross-Border Refinancing.......... - - - (20) - ----- ----- ----- ----- ----- Total................. $ 576 $ 493 $ 391 $ 558 $ 436 ===== ===== ===== ===== ===== 3Q 2Q 1Q 4Q 3Q 1995 1995 1995 1994 1994 ------ ----- ----- ----- ----- COMMERCIAL NET OREO WRITEDOWNS(GAINS ON SALES): North America Commercial Real Estate......... $ (6)$ 9 $ 10 $ 7 $ 24 Global Finance........ (8) (10) (1) (14) (9) ----- ----- ----- ----- ----- Total................. $ (14)$ (1) $ 9 $ (7) $ 15 ===== ===== ===== ===== ===== Page 17 - Citicorp Third Quarter 1995 results - 10/17/95 CONSOLIDATED STATEMENT OF INCOME CITICORP and Subsidiaries (In Millions of Dollars, Except Per Share Amounts) Third Quarter % Nine Months % 1995 1994 Chg 1995 1994 Chg ------ ------ --- ------ ------ --- Interest Revenue..... $5,795 $5,057 15 $17,105 $18,411 (7) Interest Expense..... 3,197 2,711 18 9,714 11,822 (18) ----- ----- ------ ------ Net Interest Revenue.. 2,598 2,346 11 7,391 6,589 12 ----- ----- ------ ------ Fees & Commissions... 1,268 1,280 (1) 3,793 3,778 - Trading Account...... 182 105 73 363 129 NM Foreign Exchange..... 250 182 37 878 388 NM Securities Trans..... 21 5 NM 65 178 (63) Other Revenue........ 438 407 8 1,399 1,174 19 ----- ----- ------ ------ Total Fees, Commissions and Other Revenue.... 2,159 1,979 9 6,498 5,647 15 ----- ----- ------ ------ TOTAL REVENUE......... 4,757 4,325 10 13,889 12,236 14 ----- ----- ------ ------ PROVISION FOR CREDIT LOSSES........ 576 436 32 1,460 1,323 10 ----- ----- ------ ------ Operating Expense: Salaries............ 1,122 1,050 7 3,321 2,978 12 Employee Benefits... 338 284 19 979 852 15 Net Premises & Equipment Expense.. 433 396 9 1,260 1,156 9 Other Expense....... 900 900 - 2,724 2,547 7 ----- ----- ------ ------ TOTAL OPERATING EXPENSE.............. 2,793 2,630 6 8,284 7,533 10 ----- ----- ------ ------ INCOME BEFORE TAXES AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE. 1,388 1,259 10 4,145 3,380 23 Income Taxes......... 511 365 40 1,586 1,000 59 ----- ----- ------ ------ INCOME BEF. CUMULATIVE EFFECT OF ACCTG CHANGE 877 894 (2) 2,559 2,380 8 Cumulative Effect of Accounting Change(A). - - - - (56) NM ----- ----- ------ ------ NET INCOME............ $ 877 $ 894 (2) $ 2,559 $ 2,324 10 ===== ===== ====== ====== INCOME APPLICABLE TO COMMON STOCK...... $ 798 $ 804 (1) $ 2,290 $ 2,060 11 ===== ===== ====== ====== EARNINGS PER SHARE: On Common & Common Equiv. Shs Income Before Cumulative Eff. of Acctg Chg... $ 1.79 $ 1.87 $ 5.29 $ 4.95 Income After Cumulative Eff. of Acctg Chg (A) $ 1.79 $ 1.87 $ 5.29 $ 4.82 Assuming Full Dilution Income Before Cumulative Eff. of Acctg Chg... $ 1.62 $ 1.67 $ 4.72 $ 4.44 Income After Cumulative Eff. of Acctg Chg (A) $ 1.62 $ 1.67 $ 4.72 $ 4.33 (A)The 1994 results reflect the cumulative effect of adopting SFAS No. 112, "Employers' Accounting for Postemployment Benefits," as of January 1, 1994. NM Not meaningful, as percentage equals or exceeds 100%. Page 18 - Citicorp Third Quarter 1995 results - 10/17/95 CONSOLIDATED BALANCE SHEET CITICORP and Subsidiaries (In Millions of Dollars) Sept. 30 Dec. 31 % 1995 1994 Chg ------- ------- --- ASSETS Cash and Due from Banks......... $ 5,719 $ 6,470 (12) Deposits at Interest with Banks. 8,158 6,862 19 Securities: Held to Maturity............... 4,966 5,092 (2) Available for Sale............. 13,941 13,602 2 Venture Capital................ 1,813 2,009 (10) Trading Account Assets.......... 35,682 38,875 (8) Federal Funds Sold & Securities Purchased Under Resale Agreements........ 9,765 6,995 40 Loans, Net of Unearned Income Consumer....................... 102,834 96,600 6 Commercial..................... 57,861 55,820 4 ------- ------- Total Loans, Net............ 160,695 152,420 5 Allowance for Credit Losses..... (5,341) (5,155) (4) Customers' Acceptance Liability. 1,649 1,420 16 Premises & Equipment, Net....... 4,310 4,062 6 Interest & Fees Receivable...... 2,912 2,654 10 Other Assets.................... 13,267 15,183 (13) ------- ------- Total........................... $257,536 $250,489 3 ======= ======= LIABILITIES Non-Int. Deposits (in the U.S.). $ 12,199 $ 13,648 (11) Int. Deposits (in the U.S.)..... 36,754 35,699 3 Non-Int. Deposits (Outside the U.S.).......................... 8,049 7,212 12 Int. Deposits(Outside the U.S.). 106,825 99,167 8 ------- ------- Total Deposits.............. 163,827 155,726 5 Trading Account Liabilities..... 21,485 22,382 (4) Purchased Funds & Other Borrowings............... 17,255 20,907 (17) Acceptances Outstanding......... 1,660 1,440 15 Accrued Taxes & Other Expenses.. 5,740 5,493 4 Other Liabilities............... 9,118 8,878 3 Long-Term Debt.................. 17,619 16,497 7 Subordinated Capital Notes...... 1,337 1,397 (4) STOCKHOLDERS' EQUITY Preferred Stock (Without Par Value)............ 3,348 4,187 (20) Common Stock (Par value $1.00).. 454 421 8 Surplus......................... 5,394 4,194 29 Retained Earnings .............. 11,484 9,561 20 Net Unrealized Gains - Securities Available for Sale.. 319 278 15 Foreign Currency Translation.... (427) (471) 9 Common Stock in Treasury, at Cost(A)..................... (1,077) (401) NM ------- ------- Total Stockholders' Equity.. 19,495 17,769 10 ------- ------- Total........................... $257,536 $250,489 3 ======= ======= (A) Primarily reflects the repurchase of 12.3 million common shares at a cost of $800 million during the nine months of 1995. NM Not meaningful, as percentage exceeds 100%. Page 19 - Citicorp Third Quarter 1995 results - 10/17/95 ADDITIONAL FINANCIAL DATA 3Q 2Q 1Q 4Q 3Q 1995 1995 1995 1994 1994 ------ ------ ------ ------ ------ NET INTEREST REVENUE(A) Net Interest Revenue($M)....... $ 2,606 $ 2,476 $ 2,333 $ 2,328 $ 2,352 Net Interest Margin............ 4.67% 4.42% 4.23% 4.21% 4.37% ADJUSTED TO EXCLUDE THE EFFECT OF CREDIT CARD SECURITIZATION: Net Interest Revenue($M)....... $ 3,114 $ 2,973 $ 2,801 $ 2,798 $ 2,862 Net Interest Margin............ 5.04% 4.80% 4.61% 4.61% 4.80% CONSOLIDATED AVERAGE BALANCES 3Q 2Q 1Q 4Q 3Q 1995 1995 1995 1994 1994 ------ ------ ------ ------ ------ Loans ($B): Consumer.......... $ 101 $ 99 $ 96 $ 93 $ 87 Commercial........ 56 57 56 56 56 ------ ------ ------ ------ ------ Total Average Loans ($B)........ $ 157 $ 156 $ 152 $ 149 $ 143 ====== ====== ====== ====== ====== Total Average Assets($B)........ $ 266 $ 273 $ 269 $ 267 $ 265 Avg. Interest Earning Assets($B)........ $ 221 $ 225 $ 224 $ 219 $ 214 Common Stockholders' Equity ($M)....... $15,716 $14,568 $13,653 $13,003 $12,023 Preferred Equity ($M)....... 3,717 4,326 4,262 4,187 4,116 ------ ------ ------ ------ ------ Total Average Stockholders' Equity ($M)....... $19,433 $18,894 $17,915 $17,190 $16,139 ====== ====== ====== ====== ====== (A) Taxable Equivalent Basis. Page 20 - Citicorp Third Quarter 1995 results - 10/17/95 EARNINGS PER SHARE DATA (Before Cumulative Effect of Accounting Change in 1994) Third Quarter Nine Months 1995 1994 1995 1994 ------- ------- ------- ------- On Common and Common Equivalent Shares(A): Earnings($ Millions).... $ 809 $ 827 $ 2,348 $ 2,186 Shares (in thousands)(B) 450,716 442,361 443,941 441,859 Earnings Per Share...... $ 1.79 $ 1.87 $ 5.29 $ 4.95 Assuming Full Dilution(C): Earnings($ Millions).... $ 840 $ 861 $ 2,447 $ 2,288 Shares (in thousands)(B) 518,049 515,407 518,144 515,141 Earnings Per Share...... $ 1.62 $ 1.67 $ 4.72 $ 4.44 COMMON SHARES OUTSTANDING (In Thousands) End-Of-Period............ 425,062 393,654 (A) For earnings per share on common and common equivalent shares, dividends on Conversion Preferred Stock, Series 15 are added back to income applicable to common stock, and the number of shares issuable on conversion are added back to weighted-average shares outstanding. Also added to shares outstanding are other common equivalent shares and book value shares issuable under certain benefit plans. (B) Total shares in the third quarter of 1995 reflect 6.6 million average shares repurchased under the repurchase program. (C) For earnings per share assuming full dilution, the dividends on Conversion Preferred Stock, Series 15 are added back to income applicable to common stock, and the number of shares issuable on conversion are added to weighted-average shares outstanding. Additionally, dividends on Convertible Preferred Stock, Series 12 and 13 are also added back to income applicable to common stock, and the shares issuable on conversion are added to shares outstanding. The number of common equivalent and book value shares are calculated on a fully diluted basis as well. Page 21 - Citicorp Third Quarter 1995 results - 10/17/95 OTHER REVENUE ($ Millions) Third Quarter Nine Months 1995 1994(A) 1995 1994(A) ------ ------ ------ ------ Securitized Credit Card Receivables......... $ 274 $ 251 $ 734 $ 695 Venture Captial........... 89 48 362 152 Affiliate Earnings........ 50 45 157 162 Mortgage Pass-Through Securitizaion Activity... 4 (13) 11 (60) Foreign Currency Translation (Losses) Gains........... (3) (9) 2 (2) Net Asset Gains and Other Items.............. 24 85 133 227 ------ ------ ------ ------ Total..................... $ 438 $ 407 $ 1,399 $ 1,174 ====== ====== ====== ====== TRADING-RELATED REVENUE ($ Millions) Third Quarter Nine Months 1995 1994 1995 1994 ------ ------ ------ ------ By Income Statement Line: Trading and Foreign Exchange........ $ 432 $ 287 $ 1,241 $ 517 Other (Primarily NIR).... 126 203 265 521 ------ ------ ------ ------ Total.................... $ 558 $ 490 $ 1,506 $ 1,038 ====== ====== ====== ====== By Trading Activity: Foreign Exchange......... $ 294 $ 183 $ 862 $ 495 Derivative............... 137 166 356 336 Fixed Income............. 46 46 55 (21) Other.................... 81 95 233 228 ------ ------ ------ ------ Total.................... $ 558 $ 490 $ 1,506 $ 1,038 ====== ====== ====== ====== By Business Sector: Developed Markets........ $ 317 $ 226 $ 816 $ 470 Emerging Markets......... 181 217 508 430 ------ ------ ------ ------ Total Global Finance...... 498 443 1,324 900 Global Consumer and Other. 60 47 182 138 ------ ------ ------ ------ Total..................... $ 558 $ 490 $ 1,506 $ 1,038 ====== ====== ====== ====== (A) Reclassified to conform to current quarter's presentation. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report and amendment 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: October 20, 1995 EX-12 2 EXHIBIT 12.A CITICORP AND SUBSIDIARIES CALCULATION OF RATIO OF INCOME TO FIXED CHARGES (In Millions)
NINE MONTHS ENDED SEPTEMBER 30 EXCLUDING INTEREST ON DEPOSITS: 1994 1993 1992 1991 1990 1995 1994 --------- -------- -------- -------- -------- --------- --------- FIXED CHARGES: INTEREST EXPENSE (OTHER THAN INTEREST ON DEPOSITS) 5,906 6,324 5,826 5,973 9,414 3,100 4,908 INTEREST FACTOR IN RENT EXPENSE 143 147 162 171 173 108 107 --------- -------- -------- -------- -------- --------- --------- TOTAL FIXED CHARGES 6,049 6,471 5,988 6,144 9,587 3,208 5,015 INCOME: NET INCOME(LOSS) 3,422 (A) 1,919 (B) 722 (914) (C) 318 (D) 2,559 2,380 (A) INCOME TAXES 1,189 941 696 677 508 1,586 1,000 FIXED CHARGES 6,049 6,471 5,988 6,144 9,587 3,208 5,015 --------- -------- -------- -------- -------- --------- --------- TOTAL INCOME 10,660 9,331 7,406 5,907 10,413 7,353 8,395 ========= ======== ======== ======== ======== ========= ========= RATIO OF INCOME TO FIXED CHARGES EXCLUDING INTEREST ON DEPOSITS 1.76 1.44 1.24 0.96 (E) 1.09 2.29 1.67 ========= ======== ======== ======== ======== ========= ========= INCLUDING INTEREST ON DEPOSITS: FIXED CHARGES: INTEREST EXPENSE 14,902 16,121 16,327 17,089 23,798 9,713 11,822 INTEREST FACTOR IN RENT EXPENSE 143 147 162 171 173 108 107 --------- -------- -------- -------- -------- --------- --------- TOTAL FIXED CHARGES 15,045 16,268 16,489 17,260 23,971 9,821 11,929 INCOME: NET INCOME(LOSS) 3,422 (A) 1,919 (B) 722 (914) (C) 318 (D) 2,559 2,380 (A) INCOME TAXES 1,189 941 696 677 508 1,586 1,000 FIXED CHARGES 15,045 16,268 16,489 17,260 23,971 9,821 11,929 --------- -------- -------- -------- -------- --------- --------- TOTAL INCOME 19,656 19,128 17,907 17,023 24,797 13,966 15,309 ========= ======== ======== ======== ======== ========= ========= RATIO OF INCOME TO FIXED CHARGES INCLUDING INTEREST ON DEPOSITS 1.31 1.18 1.09 0.99 (E) 1.03 1.42 1.28 ========= ======== ======== ======== ======== ========= ========= (A) NET INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1994 AND THE FULL YEAR 1994 EXCLUDES THE CUMULATIVE EFFECT OF ADOPTING STATEMENT OF FINANCIAL ACCOUNTING STANDARDS No. 112, "EMPLOYERS' ACCOUNTING FOR POSTEMPLOYMENT BENEFITS", OF $(56) MILLION. (B) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1993 EXCLUDES THE CUMULATIVE EFFECT OF ADOPTING STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 109, "ACCOUNTING FOR INCOME TAXES", OF $300 MILLION. (C) NET LOSS 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) 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) NINE MONTHS ENDED SEPTEMBER 30 EXCLUDING INTEREST ON DEPOSITS: 1994 1993 1992 1991 1990 1995 1994 --------- -------- -------- -------- -------- --------- --------- FIXED CHARGES: INTEREST EXPENSE (OTHER THAN INTEREST ON DEPOSITS) 5,906 6,324 5,826 5,973 9,414 3,100 4,908 INTEREST FACTOR IN RENT EXPENSE 143 147 162 171 173 108 107 DIVIDENDS--PREFERRED STOCK 505 (A) 465 416 271 (A) 361 444 (A) 405 (A) --------- -------- -------- -------- -------- --------- --------- TOTAL FIXED CHARGES 6,554 6,936 6,404 6,415 9,948 3,652 5,420 INCOME: NET INCOME(LOSS) 3,422 (B) 1,919 (C) 722 (914) (D) 318 (E) 2,559 2,380 (B) INCOME TAXES 1,189 941 696 677 508 1,586 1,000 FIXED CHARGES (EXCLUDING PREFERRED STOCK DIVIDENDS) 6,049 6,471 5,988 6,144 9,587 3,208 5,015 --------- -------- -------- -------- -------- --------- --------- TOTAL INCOME 10,660 9,331 7,406 5,907 10,413 7,353 8,395 ========= ======== ======== ======== ======== ========= ========= RATIO OF INCOME TO FIXED CHARGES EXCLUDING INTEREST ON DEPOSITS 1.63 1.35 1.16 0.92 (F) 1.05 2.01 1.55 ========= ======== ======== ======== ======== ========= ========= INCLUDING INTEREST ON DEPOSITS: FIXED CHARGES: INTEREST EXPENSE 14,902 16,121 16,327 17,089 23,798 9,713 11,822 INTEREST FACTOR IN RENT EXPENSE 143 147 162 171 173 108 107 DIVIDENDS--PREFERRED STOCK 505 (A) 465 416 271 (A) 361 444 (A) 405 (A) --------- -------- -------- -------- -------- --------- --------- TOTAL FIXED CHARGES 15,550 16,733 16,905 17,531 24,332 10,265 12,334 INCOME: NET INCOME(LOSS) 3,422 (B) 1,919 (C) 722 (914) (D) 318 (E) 2,559 2,380 (B) INCOME TAXES 1,189 941 696 677 508 1,586 1,000 FIXED CHARGES (EXCLUDING PREFERRED STOCK DIVIDENDS) 15,045 16,268 16,489 17,260 23,971 9,821 11,929 --------- -------- -------- -------- -------- --------- --------- TOTAL INCOME 19,656 19,128 17,907 17,023 24,797 13,966 15,309 ========= ======== ======== ======== ======== ========= ========= RATIO OF INCOME TO FIXED CHARGES INCLUDING INTEREST ON DEPOSITS 1.26 1.14 1.06 0.97 (F) 1.02 1.36 1.24 ========= ======== ======== ======== ======== ========= ========= (A) CALCULATED ON A BASIS OF AN ASSUMED TAX RATE OF 39% AND 34% FOR THE NINE MONTHS ENDED SEPTEMBER 30,1995 AND 1994, 29% AND 34% FOR THE FULL YEAR OF 1994 AND 1991,RESPECTIVELY. (B) NET INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1994 AND THE FULL YEAR 1994 EXCLUDES THE CUMULATIVE EFFECT OF ADOPTING STATEMENT OF FINANCIAL ACCOUNTING STANDARDS No. 112, "EMPLOYERS' ACCOUNTING FOR POSTEMPLOYMENT BENEFITS", OF $(56) MILLION. (C) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 1993 EXCLUDES THE CUMULATIVE EFFECT OF ADOPTING STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 109, "ACCOUNTING FOR INCOME TAXES", OF $300 MILLION. (D) NET LOSS 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) EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1991 WERE INADEQUATE TO COVER FIXED CHARGES BY THE AMOUNT OF $508 MILLION.
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