-----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, DqinBaOnUEpLPDbr2/dDj84Y4l5/aepxiRa7YaIae3aP/weuTS9I35q2B2tua8pA wiwskPwzbxNvB6wXb/elvA== 0000020405-96-000059.txt : 19960724 0000020405-96-000059.hdr.sgml : 19960724 ACCESSION NUMBER: 0000020405-96-000059 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960722 ITEM INFORMATION: Bankruptcy or receivership FILED AS OF DATE: 19960723 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: 96597734 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 CITICORP 8-K, JULY 1996 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 22, 1996 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 CITICORP SECOND QUARTER NET INCOME WAS $952 MILLION, UP 12%; EARNINGS PER COMMON SHARE INCREASED 18% TO $1.86 CITICORP [NYSE SYMBOL: CCI] ($ IN MILLIONS, EXCEPT EPS) SECOND QUARTER 1996 1995 CHANGE ADJUSTED REVENUE $5,316 $4,923 8% NET INCOME 952 853 12 EARNINGS PER SHARE (FULLY DILUTED) $1.86 $1.57 18 RETURN ON COMMON EQUITY 20.8% 20.9% RETURN ON TOTAL ASSETS 1.43% 1.25% FIRST HALF ADJUSTED REVENUE $10,433 $9,588 9% NET INCOME 1,866 1,682 11 EARNINGS PER SHARE (FULLY DILUTED) $3.61 $3.09 17 On July 16, 1996, Citicorp reported that net income in the 1996 second quarter was $952 million, an increase of 12% from the same 1995 quarter. Earnings per fully diluted common share were $1.86, compared with $1.57 in the 1995 second quarter, an increase of 18%. Net income in the six months totaled $1.9 billion, up 11% from the 1995 first half. Per share earnings were $3.61 in the 1996 half and $3.09 in the comparable 1995 period. John S. Reed, Citicorp Chairman, said: "It was a solid quarter. We continue to be on plan and are making good progress in implementing our Business Directions strategy." Against Citicorp's Business Directions financial performance targets, the company in the quarter achieved a 12% earnings gain, a return on common equity of 20.8%, a ratio of incremental Page 2 - Citicorp 1996 Second Quarter Results revenue to expense of 2.1 to 1, and generation of an estimated $700 million of free capital. Mr. Reed added: "Our consumer businesses are expanding, especially in Asia and Latin America, and our business with corporations in the Emerging Markets is showing excellent results, reinforced by the continuing successful repositioning of Global Relationship Banking." Citicorp's consumer businesses--Citibanking, Cards and the Private Bank--earned $491 million on adjusted revenue of $3.3 billion, which was up 9% from the 1995 second quarter. Net income from serving corporate banking customers worldwide was $644 million, an increase of 15% from the 1995 second quarter. The Emerging Markets business earned $433 million on revenue of $853 million, which increased 12%. Global Relationship Banking earned $211 million on revenue of $944 million, which declined 7% from the 1995 quarter. Credit costs, including securitized cards, were $735 million, up from $721 million in the preceding quarter and $639 million in the 1995 second quarter. At June 30, 1996, total reserves (including reserves for sold portfolios) were $5.9 billion. Citicorp continued to build its reserves for possible credit losses, adding $50 million above net credit losses, primarily related to Cards, consistent with the practice in recent quarters. The company bought back 9.6 million shares of common stock during the quarter for $777 million under its announced stock repurchase plan. Total repurchases in the 1996 first half were 19.2 million shares for $1.5 billion. Tier 1 capital was $19.1 billion, total capital was estimated at $28.1 billion, and the Tier 1 and total capital ratios were estimated at 8.4% and 12.3%, respectively. The ratio of common equity to total assets was 6.7%. Details follow: Page 3 - Citicorp 1996 Second Quarter Results CONSUMER BUSINESS RESULTS SHOW GLOBAL GROWTH, WITH CARD EARNINGS AFFECTED BY HIGHER CREDIT COSTS CONSUMER BUSINESSES ($ IN MILLIONS) SECOND QUARTER 1996 1995 CHANGE ADJUSTED REVENUE $3,319 $3,034 9% ADJUSTED OPERATING EXPENSE 1,799 1,711 5 OPERATING MARGIN 1,520 1,323 15 CREDIT COSTS 762 616 24 INCOME BEFORE TAXES 708 657 8 NET INCOME 491 436 13 RETURN ON ASSETS 1.58% 1.46% FIRST HALF ADJUSTED REVENUE $6,572 $5,980 10% ADJUSTED OPERATING EXPENSE 3,540 3,367 5 OPERATING MARGIN 3,032 2,613 16 CREDIT COSTS 1,468 1,152 27 INCOME BEFORE TAXES 1,464 1,361 8 NET INCOME 1,004 897 12 RETURN ON ASSETS 1.62% 1.53% The 13% improvement in net income from the 1995 second quarter was led by Citibanking, up 30%, and the Private Bank, up 60%, while Cards earnings declined 5%. Consumer credit costs were $762 million, up from $706 million in the preceding quarter and $616 million in the 1995 second quarter, chiefly because of a rise in credit losses in the U.S. bankcard business. The net credit loss ratio was 2.38% in the quarter, compared with 2.19% and 1.99% in the 1996 preceding quarter and the 1995 second quarter, respectively. The managed consumer loan delinquency ratio was 2.91% at June 30, 1996, compared with 3.03% at the end of the preceding quarter and 3.14% at the end of the prior-year second quarter. On a geographic basis, net income from consumer activities in the emerging markets increased by 16% to $226 million from the 1995 second quarter, while net income in the developed markets improved by 10% to $265 million. CITIBANKING Citibanking--business through Citibank's worldwide branch network and electronic delivery systems--earned $177 million, a gain of 30%, from the 1995 second quarter. Pretax income of $262 million was 22% higher than in the same year-earlier quarter. Page 4 - Citicorp 1996 Second Quarter Results Revenue and expense both increased 8%, with the higher expense largely reflecting investment spending on branded distribution designed to enhance customer service, particularly to support electronic banking and the further conversion of existing branches and opening of Model Branches, the standard for Citibanking offices. At June 30, 1996, the number of Model Branches was 507, which is approximately 44% of consumer branches worldwide, after the addition of 30 new Model Branches in the quarter. In the year since Citibank began eliminating fees for most electronic banking in the United States, enrollment in PC banking products increased six-fold. Citibank in Hong Kong introduced PC banking during the 1996 second quarter, joining Brazil, the United Kingdom and the United States as the fourth country to offer banking through personal computers. Credit costs of $161 million were down 10%, and the credit loss ratio was 0.99%, compared with 0.97% in the preceding quarter and 1.14% in the second quarter of last year. Managed loans delinquent 90 days or more were $2.7 billion, compared with $2.8 billion in both the preceding quarter and the 1995 second quarter, representing delinquency ratios of 4.05%, 4.18% and 4.37%, respectively. Customer investment assets under management by Citibank Global Asset Management, a part of Investment Products and Distribution which oversees the activities of over 200 local, regional and global funds around the world, exceeded $80 billion at June 30, 1996. Because these investment assets include those for Citibanking customers, Private Banking clients and corporations, the financial results of managing these funds are reflected in each of those businesses. During the quarter, CitiSelect portfolios, which are designed to simplify asset allocation, were introduced in eight Asian countries and in the United States. CARDS The Cards business worldwide--bankcards, Diners Club and private label credit cards--earned $242 million in the quarter, down $13 million, or 5%, from the 1995 second quarter. The emerging markets business represented approximately 30% of Cards earnings, compared with 26% in the prior-year quarter. Pretax income was $351 million, compared with $390 million in the same year-ago quarter. Revenue in the U.S. bankcard business was up 12%; and emerging markets card revenue was 25% higher. Revenue in other markets and products was down 9%, primarily because of declines in the private label business. Expense in U.S. bankcards was down 5% from last year's second quarter. Expense in emerging market cards was up 25% from Page 5 - Citicorp 1996 Second Quarter Results the prior year, reflecting expansion of the business. Cards were successfully introduced in the quarter in the Bahamas, Costa Rica, Guatemala, Jamaica, Turkey and Venezuela following recent introductions in the Dominican Republic and Peru. Citibank AAdvantage cards have been introduced in 1996 into six Latin American countries, bringing to 11 the number of Latin countries, plus Puerto Rico, where Citibank has made this premium card available in recent years. The number of cards in force worldwide (including affiliates) exceeded 59 million at the end of the quarter. Charge volumes in the U.S. bankcards business increased $2.3 billion, or 10.8%, from the 1995 second quarter, while charge volumes on Citicorp-issued cards in Asia Pacific jumped 26%. Managed card receivables in the U.S. bankcards business grew from the year-ago quarter by $2.3 billion, or 5.6%, to $42.8 billion at June 30, 1996, and were up slightly from $42.6 billion at the end of the 1996 first quarter. The reduced growth compared with the prior quarter was due to competition, tighter credit standards and seasonality. Credit costs for worldwide cards increased to $611 million from $547 million in the 1996 first quarter and $422 million in the 1995 second quarter. Consistent with broad industry trends, net credit losses in the managed U.S. bankcards portfolio increased to $522 million, up $55 million from the 1996 first quarter and up $159 million from the 1995 second quarter. The loss ratio in that portfolio rose to 4.99% in the second quarter from 4.38% in the 1996 first quarter and 3.75% in the 1995 second quarter, while loans that were delinquent 90 days or more totaled $732 million, or 1.73% of that portfolio, down from $759 million, or 1.80%, at March 31, 1996. Cards continued to build reserves for possible credit losses, with a provision of $49 million above net credit losses in the 1996 second quarter, consistent with $49 million in the preceding quarter and $40 million in the 1995 second quarter. PRIVATE BANK Private banking net income of $72 million was up $27 million, or 60%, from the 1995 second quarter, principally reflecting improved credit experience and broad-based revenue growth. Pretax income was $95 million, up 79% from the same 1995 quarter. Revenue grew 9% from the year-ago quarter, while expense increased 2%, resulting in a margin increase of 23%. Net credit recoveries of $10 million in the quarter compared with $16 millon of credit costs in the same year-ago period. Client business volumes under management at the end of the quarter totaled $92 billion, up 13% from a year earlier. (As Page 6 - Citicorp 1996 Second Quarter Results previously indicated, a portion of Private Bank client assets are managed by Citibank Global Asset Management.) EMERGING MARKETS EXPANDS BANKING FOR CORPORATE CUSTOMERS; GLOBAL RELATIONSHIP BANKING CONTINUES REPOSITIONING (CORPORATE) BANKING ($ IN MILLIONS) SECOND QUARTER 1996 1995 CHANGE ADJUSTED REVENUE $1,797 $1,775 1% ADJUSTED OPERATING EXPENSE 1,087 1,023 6 OPERATING MARGIN 710 752 (6) CREDIT COSTS (27) 23 NM INCOME BEFORE TAXES 737 704 5 NET INCOME 644 560 15 RETURN ON ASSETS 1.86% 1.51% FIRST HALF ADJUSTED REVENUE $3,413 $3,333 2% ADJUSTED OPERATING EXPENSE 2,093 1,976 6 OPERATING MARGIN 1,320 1,357 (3) CREDIT COSTS (12) 25 NM INCOME BEFORE TAXES 1,332 1,282 4 NET INCOME 1,115 959 16 RETURN ON ASSETS 1.61% 1.30% Net income from global corporate banking activities of $644 million in the second quarter was up 15% from the 1995 second quarter on revenue of $1.8 billion. Return on average assets was 1.86%, an improvement from 1.51% in the same 1995 quarter. Net income from Emerging Markets corporate banking was $433 million, 67% of total corporate banking earnings, and Global Relationship Banking's net income was $211 million (without inclusion of business done in emerging markets for customer relationships managed jointly). Helped by trends toward outsourcing by customers, Global Transaction Services contracts were awarded during the quarter by 200 corporate, financial and governmental customers. Citibank won 39 awards in "Euromoney" magazine's annual rankings, including best bank worldwide and best bank in emerging markets, both for the second straight year. For the 18th straight year, Citibank was named best bank for foreign exchange in the "Euromoney" customer survey, and the bank was first in "Risk" magazine's derivatives ranking, based on a customer survey. Page 7 - Citicorp 1996 Second Quarter Results EMERGING MARKETS Net income from banking for corporate customers in the emerging markets totaled $433 million in the quarter, up $91 million, or 27%, from the same 1995 quarter, as revenue grew by 12%. The results represented a return on assets of 3.00%, up from 2.80% in the 1995 second quarter. Pretax income totaled $459 million, up 16% from the 1995 second quarter. The effective income tax rate in the quarter was 6%, compared with 14% in the 1995 second quarter. Revenue of $853 million increased $93 million, or 12%, from the 1995 second quarter. The results were characterized by strong base business growth in loan products and transaction services, a decline in trading-related revenue of $18 million and an increase in asset and securities gains of $64 million. About 19% of the revenue in the Emerging Markets business was attributable to business from multinational companies managed with Global Relationship Banking, with that revenue having grown 7% from the second quarter of 1995. Expense increased 14% from the 1995 second quarter, primarily reflecting higher business volumes and investment spending to build the franchise. Since the second quarter of 1995, banking operations were initiated in Slovakia, Romania, Lebanon, and Israel. In addition, operations were expanded by opening additional offices or converting representative offices to branches or subsidiaries in China, Russia, Peru, South Africa, and Tanzania. Preparations were completed for the opening in early July of the Citi Islamic Investment Bank, a wholly owned subsidiary in Bahrain. Credit costs remained low during the quarter, resulting in a net credit of $8 million, compared with a net charge of $9 million in the 1995 second quarter. Credit costs in the 1996 quarter reflect a $21 million recovery related to the restructuring agreement concluded with Slovenia. Debt restructuring activities during the second quarter included the signing of an agreement with Panama, negotiation of an agreement with Croatia and distribution of a term sheet to Peru's international commercial creditors. GLOBAL RELATIONSHIP BANKING Net income from the GRB business in North America,Europe and Japan totaled $211 million, down slightly from the 1995 second quarter. Pretax income was $278 million, down 9% from the 1995 second quarter. Average assets continued to decline, down by $19 billion from the second quarter of 1995, as the GRB continued to focus on asset utilization and improvement of returns. Return on average assets of 1.05% improved from 0.87% in the 1995 second quarter. Page 8 - Citicorp 1996 Second Quarter Results Revenue of $944 million declined $71 million from the 1995 second quarter. The results reflected stable business in loan products and growth in transaction services, offset by declines in both trading-related revenue and venture capital revenue of $102 million and $81 million, respectively. The results also included a $110 million gain from the sale of an automated trading business, which was part of the company's former information initiatives. Trading-related results amounted to $177 million and included a one-time charge of $60 million related to certain mortgage-backed securities activities. Expense of $685 million increased 2% compared with the 1995 quarter due primarily to higher volumes in transaction services and investment in technological infrastructure. Credit costs in the quarter were a credit of $19 million, compared with a charge of $14 million in the 1995 second quarter. The second quarter of 1995 also included a provision in excess of net write-offs of $25 million. OTHER ITEMS Revenues and expenses were both deflated by approximately 2% compared to the year earlier quarter, due to a stronger U.S. dollar. Citicorp's effective tax rate was 38% in the quarter, compared with 39% in the 1995 second quarter. The 1995 full-year effective tax rate was 38%. Income taxes are attributed to core businesses on the basis of local tax rates, which amounted to an effective rate of 21% in the quarter and 27% in the 1995 second quarter (29% for the full 1995 year), reflecting changes in the nature and geographic mix of earnings. The difference between the local tax rate and Citicorp's overall effective rate in each period is included in corporate items. Corporate items included an investment writedown of $50 million in Latin America; the year-ago quarter included a similar charge of $70 million. Average common shares outstanding for the purpose of computing fully diluted earnings per share in the 1996 second quarter were 492.1 million versus 500.8 million in the preceding 1996 quarter, principally reflecting the net effect of the share repurchase program and employee stock plans. With the repurchase of 9.6 million shares of common stock in the quarter at a total cost of $777 million, the number of shares acquired since June 20, 1995, when the Board of Directors authorized the stock repurchase program, totaled 42.2 million at Page 9 - Citicorp 1996 Second Quarter Results a cost of $3.0 billion. As expanded in January 1996, the program is authorized to make total purchases for up to $4.5 billion through January 1998. Tables detailing key financial data, an analysis of operating margin, business results and credit indicators follow, along with financial statements. Further details concerning the financial results will be available next month in Citicorp's Form 10-Q. Page 10 - Citicorp Second Quarter 1996 results - 7/16/96 KEY RATIOS & OTHER CONSOLIDATED FINANCIAL DATA Second Quarter % Six Months % 1996 1995 Chg 1996 1995 Chg ---- ---- --- ---- ---- --- NET INCOME ($M)......... $ 952 $ 853 12 $1,866 $1,682 11 NET INCOME PER COMMON SHARE: On Common & Common Equivalent Shares...... $ 1.86 $ 1.76 6 $ 3.68 $ 3.47 6 Assuming Full Dilution.. $ 1.86 $ 1.57 18 $ 3.61 $ 3.09 17 PER SHARE DATA: Common Stockholders' Equity................. $37.73 $37.35 1 Closing Stock Price at Quarter End......... $82.75 $57.88 43 PROFITABILITY RATIOS (Annualized): Return on Total Assets.. 1.43% 1.25% 1.40% 1.25% Return on Common Stockholders' Equity... 20.8% 20.9% 20.5% 21.3% Return on Total Stockholders' Equity... 19.3% 18.1% 19.0% 18.4% CAPITAL: Tier 1 ($B)............ $ 19.1 $ 18.6 Tier 1 & 2 ($B)(A)..... 28.1 27.3 Tier 1 Ratio(A)........ 8.4% 8.4% Tier 1 & 2 Ratio(A).... 12.3 12.4 Common Equity as a % of Total Assets.... 6.7% 6.0% Total Equity as a % of Total Assets.... 7.5% 7.6% DIVIDENDS DECLARED ($M): Common............... $ 216 $ 119 $ 426 $ 238 Preferred............ 38 96 85 188 (A) 1996 Estimated. Page 11 - Citicorp Second Quarter 1996 results - 7/16/96 OPERATING MARGIN ($ Millions) Second Quarter % Six Months % 1996 1995 Chg 1996 1995 Chg ------ ------ --- ------ ------ --- Total Revenue ........ $4,993 $4,689 6 $ 9,821 $9,132 8 Effect of Credit Card Securitization....... 349 226 54 643 448 44 Net Cost to Carry(A).. (26) 8 NM (31) 8 NM ----- ----- ------ ----- Adjusted Revenue...... 5,316 4,923 8 10,433 9,588 9 ----- ----- ------ ----- Total Operating Expense.............. 2,978 2,798 6 5,838 5,491 6 Net OREO Benefits(B).. 17 13 31 29 13 NM ----- ----- ------ ----- Adjusted Operating Expense.............. 2,995 2,811 7 5,867 5,504 7 ----- ----- ------ ----- Operating Margin...... 2,321 2,112 10 4,566 4,084 12 Consumer Credit Costs(C)............. 762 616 24 1,468 1,152 27 Commercial Credit Costs(D)............. (27) 23 NM (12) 25 NM ----- ----- ------ ----- Operating Margin Less Credit Costs.... 1,586 1,473 8 3,110 2,907 7 Additional Provision(E)......... 50 75 (33) 100 150 (33) ----- ----- ------ ----- Income Before Taxes .. $1,536 $1,398 10 $ 3,010 $2,757 9 ===== ===== ====== ===== (A) Principally the net cost to carry commercial cash-basis loans and Other Real Estate Owned ("OREO"). (B) Principally gains and losses on sales, direct revenue and expense, and writedowns on commercial OREO. (C) Principally consumer net credit write-offs adjusted for the effect of credit card securitization. (D) Includes commercial net credit write-offs, net cost to carry, and net OREO benefits. (E) Primarily provision for credit losses in excess of net write-offs. NM Not meaningful, as percentage exceeds 100%. Page 12 - Citicorp Second Quarter 1996 results - 7/16/96 BUSINESS FOCUS Net Income (Loss) ($ Millions) Second Quarter % Six Months % 1996 1995(A) Chg 1996 1995(A) Chg ----- ----- --- ------ ------ --- Consumer............. $ 491 $ 436 13 $1,004 $ 897 12 (Corporate)Banking(B) 644 560 15 1,115 959 16 ----- ---- ----- ----- Core Businesses.... 1,135 996 14 2,119 1,856 14 Corporate Items(C)... (183) (143) (28) (253) (174) (45) ----- ---- ----- ----- Total Citicorp....... $ 952 $ 853 12 $1,866 $1,682 11 ===== ==== ===== ===== SUPPLEMENTAL INFORMATION: CONSUMER: Citibanking........ $ 177 $ 136 30 $ 360 $ 284 27 Cards.............. 242 255 (5) 507 519 (2) Private Banking.... 72 45 60 137 94 46 ----- ---- ----- ----- Total.............. $ 491 $ 436 13 $1,004 $ 897 12 ===== ==== ===== ===== Developed Markets.. $ 265 $ 242 10 $ 554 $ 510 9 Emerging Markets... 226 194 16 450 387 16 ----- ---- ----- ----- Total.............. $ 491 $ 436 13 $1,004 $ 897 12 ===== ==== ===== ===== (CORPORATE)BANKING(B) Emerging Markets... $ 433 $ 342 27 $ 826 $ 613 35 Global Relationship Banking........... 211 218 (3) 289 346 (16) ----- ---- ----- ----- Total.............. $ 644 $ 560 15 $1,115 $ 959 16 ===== ==== ===== ===== (A) Reclassified to conform to current quarter's presentation. (B) (Corporate) Banking activities include the results of the Cross Border Refinancing and the North America Commercial Real Estate portfolios in the Emerging Markets and Global Relationship Banking, respectively. (C) See Corporate Items section for details. Page 13 - Citicorp Second Quarter 1996 results - 7/16/96 CONSUMER ($ Millions) Second Quarter % Six Months % 1996 1995(A) Chg 1996 1995(A)Chg ------ ------ --- ------ ------ --- Total Revenue........ $2,979 $2,805 6 $5,939 $5,525 7 Effect of Credit Card Securitization...... 349 226 54 643 448 44 Net Cost to Carry.... (9) 3 NM (10) 7 NM ----- ----- ----- ----- Adjusted Revenue..... 3,319 3,034 9 6,572 5,980 10 ----- ----- ----- ----- Total Operating Expense............. 1,801 1,719 5 3,542 3,376 5 Net OREO Costs....... (2) (8) 75 (2) (9) 78 ----- ----- ----- ----- Adjusted Operating Expense............. 1,799 1,711 5 3,540 3,367 5 ----- ----- ----- ----- Operating Margin..... 1,520 1,323 15 3,032 2,613 16 ----- ----- ----- ----- Net Write-offs....... 420 379 11 833 688 21 Effect of Credit Card Securitization...... 349 226 54 643 448 44 Net Cost to Carry and Net OREO Costs...... (7) 11 NM (8) 16 NM ----- ----- ----- ----- Credit Costs......... 762 616 24 1,468 1,152 27 ----- ----- ----- ----- Operating Margin Less Credit Costs... 758 707 7 1,564 1,461 7 ----- ----- ----- ----- Additional Provision. 50 50 - 100 100 - ----- ----- ----- ----- Income Before Taxes.. 708 657 8 1,464 1,361 8 Income Taxes......... 217 221 (2) 460 464 (1) ----- ----- ----- ----- Net Income........... $ 491 $ 436 13 $1,004 $ 897 12 ===== ===== ===== ===== Average Assets ($B).. $ 125 $ 120 4 $ 125 $ 118 6 Return on Assets..... 1.58% 1.46% - 1.62% 1.53% - (A) Reclassified to conform to current quarter's presentation. NM Not meaningful,as percentage exceeds 100%. Page 14 - Citicorp Second Quarter 1996 results - 7/16/96 CONSUMER(SUPPLEMENTAL DATA) ($ Millions) Second Quarter % Six Months % 1996 1995(A) Chg 1996 1995(A) Chg ------ ------ --- ------ ------ --- CITIBANKING: Revenue.............. $1,452 $1,350 8 $2,856 $2,637 8 Operating Expense.... 1,028 948 8 1,995 1,852 8 ----- ----- ----- ----- Operating Margin..... 424 402 5 861 785 10 Credit Costs ........ 161 178 (10) 319 327 (2) ----- ----- ----- ----- Operating Margin Less Credit Costs... 263 224 17 542 458 18 Additional Provision. 1 10 (90) 2 12 (83) ----- ----- ----- ----- Income Before Taxes.. 262 214 22 540 446 21 Income Taxes......... 85 78 9 180 162 11 ----- ----- ----- ----- Net Income........... $ 177 $ 136 30 $ 360 $ 284 27 ===== ===== ===== ===== Average Assets($B)... 82 80 3 82 78 5 Return on Assets..... 0.87% 0.68% - 0.88% 0.73% - CARDS(B): Revenue.............. $1,616 $1,453 11 $3,219 $2,888 11 Operating Expense.... 605 601 1 1,217 1,200 1 ----- ----- ----- ----- Operating Margin..... 1,011 852 19 2,002 1,688 19 Credit Costs......... 611 422 45 1,158 799 45 ----- ----- ----- ----- Operating Margin Less Credit Costs... 400 430 (7) 844 889 (5) Additional Provision. 49 40 23 98 88 11 ----- ----- ----- ----- Income Before Taxes.. 351 390 (10) 746 801 (7) Income Taxes......... 109 135 (19) 239 282 (15) ----- ----- ----- ----- Net Income........... $ 242 $ 255 (5) $ 507 $ 519 (2) ===== ===== ===== ===== Average Assets($B)... 27 25 8 27 25 8 Return on Assets(C).. 3.60% 4.09% - 3.78% 4.19% - PRIVATE BANKING(D): Revenue.............. $ 251 $ 231 9 $ 497 $ 455 9 Operating Expense.... 166 162 2 328 315 4 ----- ----- ----- ----- Operating Margin..... 85 69 23 169 140 21 Credit Costs ........ (10) 16 NM (9) 26 NM ----- ----- ----- ----- Operating Margin Less Credit Costs... 95 53 79 178 114 56 Additional Provision. - - - - - - ----- ----- ----- ----- Income Before Taxes.. 95 53 79 178 114 56 Income Taxes......... 23 8 NM 41 20 NM ----- ----- ----- ----- Net Income........... $ 72 $ 45 60 $ 137 $ 94 46 ===== ===== ===== ===== Average Assets($B)... 16 15 7 16 15 7 Return on Assets..... 1.81% 1.20% - 1.72% 1.26% - (A) Reclassified to conform to current quarter's presentation. (B) Revenue and Credit Costs adjusted for the effect of credit card securitization. (C) Return on Managed Assets(which includes securitized bankcard receivables in the U.S.) was 1.84% and 2.13% in the second quarter of 1996 and 1995, respectively, and 1.92% and 2.18% in the six month periods of 1996 and 1995, respectively. (D) Revenue, Operating Expense, Operating Margin and Credit Costs adjusted for credit-related items. NM Not meaningful, as percentage exceeds 100%. Page 15 - Citicorp Second Quarter 1996 results - 7/16/96 CONSUMER(SUPPLEMENTAL DATA)(A) ($ Millions) Second Quarter % Six Months % 1996 1995(B) Chg 1996 1995(B) Chg ------ ------ --- ------ ------ --- DEVELOPED MARKETS: Revenue.............. $2,415 $2,263 7 $4,805 $4,472 7 Operating Expense.... 1,290 1,279 1 2,555 2,524 1 ----- ----- ----- ----- Operating Margin..... 1,125 984 14 2,250 1,948 16 Credit Costs ........ 664 552 20 1,277 1,046 22 ----- ----- ----- ----- Operating Margin Less Credit Costs... 461 432 7 973 902 8 Additional Provision. 41 34 21 89 80 11 ----- ----- ----- ----- Income Before Taxes.. 420 398 6 884 822 8 Income Taxes......... 155 156 (1) 330 312 6 ----- ----- ----- ----- Net Income........... $ 265 $ 242 10 $ 554 $ 510 9 ===== ===== ===== ===== Average Assets($B)... 87 85 2 88 84 5 Return on Assets..... 1.23% 1.14% - 1.27% 1.22% - EMERGING MARKETS: Revenue.............. $ 904 $ 771 17 $1,767 $1,508 17 Operating Expense.... 509 432 18 985 843 17 ----- ----- ----- ----- Operating Margin..... 395 339 17 782 665 18 Credit Costs ........ 98 64 53 191 106 80 ----- ----- ----- ----- Operating Margin Less Credit Costs... 297 275 8 591 559 6 Additional Provision. 9 16 (44) 11 20 (45) ----- ----- ----- ----- Income Before Taxes.. 288 259 11 580 539 8 Income Taxes......... 62 65 (5) 130 152 (14) ----- ----- ----- ----- Net Income........... $ 226 $ 194 16 $ 450 $ 387 16 ===== ===== ===== ===== Average Assets($B)... 38 35 9 37 34 9 Return on Assets..... 2.39% 2.22% - 2.45% 2.30% - (A) Revenue, Operating Expense, Operating Margin and Credit Costs adjusted for credit-related items. Additionally, Revenue and Credit Costs in the Developed Markets are adjusted for the effect of credit card securitization. (B) Reclassified to conform to current quarter's presentation. Page 16 - Citicorp Second Quarter 1996 results - 7/16/96 (CORPORATE) BANKING ($ Millions) Second Quarter % Six Months % 1996 1995(A) Chg 1996 1995(A) Chg ------ ------ --- ------ ------ --- Total Revenue........ $1,814 $1,770 2 $3,434 $3,332 3 Net Cost to Carry.... (17) 5 NM (21) 1 NM ----- ----- ----- ----- Adjusted Revenue..... 1,797 1,775 1 3,413 3,333 2 ----- ----- ----- ----- Total Operating Expense............. 1,068 1,002 7 2,062 1,954 6 Net OREO Benefits.... 19 21 (10) 31 22 41 ----- ----- ----- ----- Adjusted Operating Expense............. 1,087 1,023 6 2,093 1,976 6 ----- ----- ----- ----- Operating Margin..... 710 752 (6) 1,320 1,357 (3) ----- ----- ----- ----- Net Write-offs....... 9 39 (77) 40 46 (13) Net Cost to Carry and Net OREO Benefits... (36) (16) NM (52) (21) NM ----- ----- ----- ----- Credit Costs......... (27) 23 NM (12) 25 NM ----- ----- ----- ----- Operating Margin Less Credit Costs... 737 729 1 1,332 1,332 - ----- ----- ----- ----- Additional Provision. - 25 NM - 50 NM ----- ----- ----- ----- Income Before Taxes.. 737 704 5 1,332 1,282 4 Income Taxes......... 93 144 (35) 217 323 (33) ----- ----- ----- ----- Net Income........... $ 644 $ 560 15 $1,115 $ 959 16 ===== ===== ===== ===== Average Assets ($B).. $ 139 $ 149 (7) $ 139 $ 149 (7) Return on Assets..... 1.86% 1.51% - 1.61% 1.30% - (A) Reclassified to conform to current quarter's presentation. NM Not meaningful,as percentage exceeds 100%. Page 17 - Citicorp Second Quarter 1996 results - 7/16/96 (CORPORATE)BANKING (SUPPLEMENTAL DATA)(A) ($ Millions) Second Quarter % Six Months % 1996 1995(B) Chg 1996 1995(B) Chg ------ ------ --- ------ ------ --- EMERGING MARKETS: Revenue.............. $ 853 $ 760 12 $1,720 $1,474 17 Operating Expense.... 402 354 14 773 668 16 ----- ----- ----- ----- Operating Margin..... 451 406 11 947 806 17 Credit Costs ........ (8) 9 NM 2 17 (88) ----- ----- ----- ----- Operating Margin Less Credit Costs... 459 397 16 945 789 20 ----- ----- ----- ----- Additional Provision. - - - - - - ----- ----- ----- ----- Income Before Taxes.. 459 397 16 945 789 20 Income Taxes......... 26 55 (53) 119 176 (32) ----- ----- ----- ----- Net Income........... $ 433 $ 342 27 $ 826 $ 613 35 ===== ===== ===== ===== Average Assets($B)... 58 49 18 56 48 17 Return on Assets..... 3.00% 2.80% - 2.97% 2.58% - GLOBAL RELATIONSHIP BANKING: Revenue.............. $ 944 $1,015 (7) $1,693 $1,859 (9) Operating Expense.... 685 669 2 1,320 1,308 1 ----- ----- ----- ----- Operating Margin..... 259 346 (25) 373 551 (32) Credit Costs ........ (19) 14 NM (14) 8 NM ----- ----- ----- ----- Operating Margin Less Credit Costs... 278 332 (16) 387 543 (29) Additional Provision. - 25 NM - 50 NM ----- ----- ----- ----- Income Before Taxes.. 278 307 (9) 387 493 (22) Income Taxes......... 67 89 (25) 98 147 (33) ----- ----- ----- ----- Net Income........... $ 211 $ 218 (3) $ 289 $ 346 (16) ===== ===== ===== ===== Average Assets($B)... 81 100 (19) 83 101 (18) Return on Assets..... 1.05% 0.87% - 0.70% 0.69% - (A) Revenue, Operating Expense, Operating Margin and Credit Costs adjusted for credit-related items. (B) Reclassified to conform to current quarter's presentation. NM Not meaningful, as percentage exceeds 100%. Page 18 - Citicorp Second Quarter 1996 results - 7/16/96 CORPORATE ITEMS(A) ($ Millions) Second Quarter % Six Months % 1996 1995(B) Chg 1996 1995(B) Chg ------ ------ --- ------ ------ --- Revenue............. $ 200 $ 114 75 $ 448 $ 275 63 Operating Expense... 109 77 42 234 161 45 ----- ----- ----- ----- Income Before Taxes. 91 37 NM 214 114 88 Income Taxes........ 274 180 52 467 288 62 ----- ----- ----- ----- Net Loss............ $ (183) $ (143) (28) $ (253) $ (174) (45) ===== ===== ===== ===== (A) Corporate Items revenue principally reflects amounts derived from charging businesses for funds employed. Expenses represent unallocated corporate costs, while income taxes include the offset created by attributing income taxes to business activities on a local tax basis. (B) Reclassified to conform to current quarter's presentation. NM Not meaningful, as percentage exceeds 100%. Page 19 - Citicorp Second Quarter 1996 results - 7/16/96 ASSET QUALITY COMMERCIAL CASH-BASIS LOANS AND OREO ($ Millions) 2Q 1Q 4Q 3Q 2Q 1996 1996 1995 1995 1995 ------ ------ ------ ------ ------ Comm'l Cash-Basis Loans: Collateral-Dependent(A) $ 677 $ 763 $ 779 $ 899 $1,040 Other.................. 677 766 755 775 612 ----- ----- ----- ----- ----- Total Commercial Cash-Basis Loans....... 1,354 1,529 1,534 1,674 1,652 Commercial OREO......... 528 518 625 960 1,054 ----- ----- ----- ----- ----- Total Commercial Cash-Basis Loans & OREO $1,882 $2,047 $2,159 $2,634 $2,706 ===== ===== ===== ===== ===== Comm'l Cash-Basis Loans: N.A. Commercial Real Estate........... $ 782 $ 862 $ 862 $1,010 $1,177 Other.................. 572 667 672 664 475 ----- ----- ----- ----- ----- Total Commercial Cash-Basis Loans....... $1,354 $1,529 $1,534 $1,674 $1,652 ===== ===== ===== ===== ===== ALLOWANCE FOR CREDIT LOSSES Consumer................ $2,000 $1,966 $1,944 $1,931 $1,923 Commercial.............. 3,424 3,424 3,424 3,410 3,385 ----- ----- ----- ----- ----- Total................... $5,424 $5,390 $5,368 $5,341 $5,308 ===== ===== ===== ===== ===== Reserve for Consumer Sold Portfolios........ $ 466 $ 482 $ 486 $ 473 $ 467 ALLOWANCE AS A PERCENTAGE OF TOTAL LOANS Consumer................ 1.90% 1.89% 1.84% 1.88% 1.91% Commercial.............. 5.48 5.58 5.71 5.89 5.90 Total................... 3.23% 3.26% 3.24% 3.32% 3.36% ADDITIONAL DATA Commercial Allowance as a % of Total Commercial Cash-Basis Loans....... 253% 224% 223% 204% 205% Commercial Renegotiated Loans.................. $ 335 $ 338 $ 421 $ 395 $ 385 Consumer Cash-Basis Loans.................. $2,545 $2,719 $2,660 $2,665 $2,697 Assets Pending Disposition(A)......... $ 180 $ 192 $ 205 $ 195 $ 195 Consumer OREO .......... $ 497 $ 530 $ 529 $ 561 $ 545 (A) Carried at lower of cost or collateral value. Page 20 - Citicorp Second Quarter 1996 results - 7/16/96 DETAILS OF CREDIT LOSS EXPERIENCE ($ Millions) 2Q 1Q 4Q 3Q 2Q 1996 1996 1995 1995 1995 ------ ------ ------ ------ ------ NET WRITE-OFFS: Consumer ............. $ 420 $ 413 $ 441 $ 415 $ 379 Commercial............ 9 31 26 86 52 ----- ----- ----- ----- ----- Total................. $ 429 $ 444 $ 467 $ 501 $ 431 ===== ===== ===== ===== ===== PROVISION FOR CREDIT LOSSES: Consumer.............. $ 470 $ 463 $ 491 $ 465 $ 429 Commercial............ 9 31 40 111 64 ----- ----- ----- ----- ----- Total................. $ 479 $ 494 $ 531 $ 576 $ 493 ===== ===== ===== ===== ===== Page 21 - Citicorp Second Quarter 1996 results - 7/16/96 CONSOLIDATED STATEMENT OF INCOME CITICORP and Subsidiaries (In Millions of Dollars, Except Per Share Amounts) Second Quarter % Six Months % 1996 1995 Chg 1996 1995 Chg ----- ----- --- ------ ------ --- Interest Revenue..... $5,751 $5,713 1 $11,527 $11,310 2 Interest Expense..... 3,023 3,245 (7) 6,114 6,517 (6) ----- ----- ------ ------ Net Interest Revenue 2,728 2,468 11 5,413 4,793 13 ----- ----- ------ ------ Fees & Commissions... 1,349 1,263 7 2,661 2,525 5 Trading Account...... 106 142 (25) 196 181 8 Foreign Exchange..... 214 323 (34) 419 628 (33) Securities Trans..... 39 18 NM 141 44 NM Other Revenue........ 557 475 17 991 961 3 ----- ----- ------ ------ Total Fees, Commissions and Other Revenue.. 2,265 2,221 2 4,408 4,339 2 ----- ----- ------ ------ TOTAL REVENUE........ 4,993 4,689 6 9,821 9,132 8 ----- ----- ------ ------ PROVISION FOR CREDIT LOSSES....... 479 493 (3) 973 884 10 ----- ----- ------ ------ Operating Expense: Salaries............ 1,212 1,119 8 2,344 2,199 7 Employee Benefits... 331 343 (3) 668 641 4 Net Premises & Equipment Expense.. 439 417 5 896 827 8 Other Expense....... 996 919 8 1,930 1,824 6 ----- ----- ------ ------ TOTAL OPERATING EXPENSE............. 2,978 2,798 6 5,838 5,491 6 ----- ----- ------ ------ INCOME BEFORE TAXES.. 1,536 1,398 10 3,010 2,757 9 INCOME TAXES......... 584 545 7 1,144 1,075 6 ----- ----- ------ ------ NET INCOME........... $ 952 $ 853 12 $ 1,866 $ 1,682 11 ===== ===== ====== ====== INCOME APPLICABLE TO COMMON STOCK..... $ 914 $ 757 21 $ 1,785 $ 1,492 20 ===== ===== ====== ====== EARNINGS PER SHARE: On Common & Common Equivalent Shares... $ 1.86 $ 1.76 $ 3.68 $ 3.47 Assuming Full Dilution........... $ 1.86 $ 1.57 $ 3.61 $ 3.09 NM Not meaningful, as percentage exceeds 100%. Page 22 - Citicorp Second Quarter 1996 results - 7/16/96 CONSOLIDATED BALANCE SHEET CITICORP and Subsidiaries (In Millions of Dollars) June 30 Dec. 31 % 1996 1995 Chg ------- ------- --- ASSETS Cash and Due from Banks......... $ 7,066 $ 5,723 23 Deposits at Interest with Banks. 10,554 9,028 17 Securities: Available for Sale............. 22,710 18,213 25 Venture Capital................ 1,803 1,854 (3) Trading Account Assets.......... 29,882 32,093 (7) Federal Funds Sold & Securities Purchased Under Resale Agreements........ 9,889 8,113 22 Loans, Net of Unearned Income Consumer....................... 105,363 105,643 - Commercial..................... 62,510 59,999 4 ------- ------- Total Loans, Net............ 167,873 165,642 1 Allowance for Credit Losses..... (5,424) (5,368) (1) Customers' Acceptance Liability. 1,981 1,542 28 Premises & Equipment, Net....... 4,428 4,339 2 Interest & Fees Receivable...... 2,938 2,914 1 Other Assets.................... 13,124 12,760 3 ------- ------- Total........................... $266,824 $256,853 4 ======= ======= LIABILITIES Non-Int. Deposits (in the U.S.). $ 13,262 $ 13,388 (1) Int. Deposits (in the U.S.)..... 37,994 36,700 4 Non-Int. Deposits (Outside the U.S.).......................... 8,745 8,164 7 Int. Deposits(Outside the U.S.). 115,782 108,879 6 ------- ------- Total Deposits.............. 175,783 167,131 5 Trading Account Liabilities..... 18,145 18,274 (1) Purchased Funds & Other Borrowings............... 17,519 16,334 7 Acceptances Outstanding......... 2,033 1,559 30 Accrued Taxes & Other Expenses.. 5,460 5,719 (5) Other Liabilities............... 8,477 9,767 (13) Long-Term Debt and Subordinated Capital Notes.................. 19,477 18,488 5 STOCKHOLDERS' EQUITY (A) Preferred Stock (Without Par Value)............ 2,078 3,071 (32) Common Stock (Par value $1.00).. 505 461 10 Surplus......................... 6,518 5,702 14 Retained Earnings .............. 12,882 12,190 6 Net Unrealized Gains - Securities Available for Sale.. 297 132 NM Foreign Currency Translation.... (469) (437) (7) Common Stock in Treasury, at Cost ....................... (1,881) (1,538) (22) ------- ------- Total Stockholders' Equity.. 19,930 19,581 2 ------- ------- Total........................... $266,824 $256,853 4 ======= ======= (A) During 1996 the remaining Convertible Preferred Stock, Series 12 and 13 totaling $993 million, were converted to common stockholders' equity. The $590 million Series 12 conversion resulted in increases to common stock and surplus, while the $403 million Series 13 conversion resulted in $1.1 billion issuance from treasury stock and a reduction in retained earnings of $0.7 billion. Treasury stock at June 30, 1996 also reflects the repurchase of 19.2 million common shares at a cost of $1.5 billion during the six months of 1996. NM Not meaningful, as percentage exceeds 100%. Page 23 - Citicorp Second Quarter 1996 results - 7/16/96 ADDITIONAL FINANCIAL DATA 2Q 1Q 4Q 3Q 2Q 1996 1996 1995 1995 1995 ------ ------ ------ ------ ------ NET INTEREST REVENUE(A) ($ Millions) Net Interest Revenue.............. $ 2,736 $ 2,693 $ 2,569 $ 2,606 $ 2,476 Effect of Credit Card Securitization....... 615 570 537 508 497 ------ ------ ------ ------ ------ Total Adjusted Net Interest Revenue..... $ 3,351 $ 3,263 $ 3,106 $ 3,114 $ 2,973 ====== ====== ====== ====== ====== Net Interest Margin... 4.77% 4.74% 4.51% 4.67% 4.42% Net Interest Margin (Adjusted)(B)........ 5.25% 5.15% 4.91% 5.04% 4.80% CONSOLIDATED AVERAGE BALANCES Loans($B): Consumer............. $ 104 $ 104 $ 103 $ 101 $ 99 Commercial........... 60 59 58 56 57 ------ ------ ------ ------ ------ Total Average Loans($B)............ $ 164 $ 163 $ 161 $ 157 $ 156 ====== ====== ====== ====== ====== Average Credit Card Securitization($B)... $ 26 $ 26 $ 25 $ 24 $ 23 Total Average Assets($B)........... $ 268 $ 268 $ 266 $ 266 $ 273 Avg. Interest Earning Assets($B) -As Reported...... $ 231 $ 229 $ 226 $ 221 $ 225 -Adjusted(B)...... $ 257 $ 255 $ 251 $ 245 $ 248 Common Stockholders' Equity ($M).......... $17,713 $17,362 $16,166 $15,716 $14,568 Preferred Equity ($M).......... 2,078 2,367 3,169 3,717 4,326 ------ ------ ------ ------ ------ Total Average Stockholders' Equity ($M).......... $19,791 $19,729 $19,335 $19,433 $18,894 ====== ====== ====== ====== ====== (A) Taxable Equivalent Basis. (B) Adjusted for the effect of credit card securitization. Page 24 - Citicorp Second Quarter 1996 results - 7/16/96 EARNINGS PER SHARE DATA Second Quarter Six Months 1996 1995 1996 1995 ------- ------- ------ ------- On Common and Common Equivalent Shares(A): Earnings($ Millions)... $ 914 $ 780 $ 1,785 $ 1,539 Shares(Thousands)...... 491,819 444,489 485,217 443,607 Earnings Per Share..... $ 1.86 $ 1.76 $ 3.68 $ 3.47 Assuming Full Dilution(B): Earnings($ Millions)... $ 914 $ 814 $ 1,790 $ 1,607 Shares(Thousands)...... 492,148 519,471 496,454 520,794 Earnings Per Share..... $ 1.86 $ 1.57 $ 3.61 $ 3.09 COMMON SHARES OUTSTANDING (In Thousands) End Of Period.......... 473,164 414,403 (A)For the second quarter and six months of 1996, earnings per share on common and common equivalent shares included shares issued upon conversion of Convertible Preferred Stock, Series 12 and 13, commencing with the conversion dates. For the second quarter and six months of 1995, dividends on Conversion Preferred Stock, Series 15 (which was redeemed in full during 1995) were added back to income applicable to common stock, and the number of shares issuable on conversion were added to weighted-average shares outstanding. Added to shares outstanding for the 1996 and 1995 second quarter and six month periods are other common equivalent shares and book value shares issuable under certain benefit plans. (B)For the second quarter and six months of 1995, the dividends on Conversion Preferred Stock, Series 15 were added back to income applicable to common stock, and the number of shares issuable on conversion were added to weighted-average shares outstanding. Additionally, for the 1995 second quarter and the six month periods of 1996 and 1995, dividends on Convertible Preferred Stock, Series 12 and 13 are added back to income applicable to common stock, and the shares issuable on conversion are added to shares outstanding. From conversion dates forward, these shares are included in weighted-average common shares outstanding. The number of common equivalent and book value shares are calculated on a fully diluted basis as well. Page 25 - Citicorp Second Quarter 1996 results - 7/16/96 OTHER REVENUE ($ Millions) Second Quarter % Six Months % 1996 1995(A) Chg 1996 1995(A) Chg ----- ----- --- ----- ----- --- Securitized Credit Card Receivables...... $ 215 $ 244 (12) $ 448 $ 460 (3) Venture Capital Gains.. 107 188 (43) 145 273 (47) Affiliate Earnings..... 83 52 60 145 107 36 Net Asset Gains(Losses) and Other Items....... 152 (9) NM 253 121 NM ---- ----- ---- ---- Total.................. $ 557 $ 475 17 $ 991 $ 961 3 ==== ===== ==== ==== TRADING-RELATED REVENUE ($ Millions) Second Quarter % Six Months % 1996 1995(A) Chg 1996 1995(A) Chg ----- ----- --- ----- ----- --- By Income Statement Line: Trading and Foreign Exchange..... $ 320 $ 465 (31) $ 615 $ 809 (24) Other (Primarily Net Interest Revenue).... 107 88 22 204 139 47 ---- ----- ---- ---- Total................. $ 427 $ 553 (23) $ 819 $ 948 (14) ==== ===== ==== ==== By Trading Activity: Foreign Exchange...... $ 232 $ 303 (23) $ 442 $ 568 (22) Derivative............ 129 120 8 275 219 26 Fixed Income.......... (27) 49 NM (28) 6 NM Other................. 93 81 15 130 155 (16) ---- ----- ---- ---- Total................. $ 427 $ 553 (23) $ 819 $ 948 (14) ==== ===== ==== ==== By Business Sector: Emerging Markets...... $ 190 $ 208 (9) $ 344 $ 327 5 Global Relationship Banking.............. 177 279 (37) 365 496 (26) ---- ----- ---- ---- Total(Corp.)Banking... 367 487 (25) 709 823 (14) Consumer and Other.... 60 66 (9) 110 125 (12) ---- ----- ---- ---- Total.................. $ 427 $ 553 (23) $ 819 $ 948 (14) ==== ===== ==== ==== (A) Reclassified to conform to current quarter's presentation. NM Not meaningful, as percentage exceeds 100%. 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 22, 1996 EX-12.A 2 CALCULATION OF RATIO OF INCOME TO FIXED CHARGES CITICORP AND SUBSIDIARIES CALCULATION OF RATIO OF INCOME TO FIXED CHARGES (In Millions)
CITICORP AND SUBSIDIARIES CALCULATION OF RATIO OF INCOME TO FIXED CHARGES (In Millions) SIX MONTHS ENDED JUNE 30 EXCLUDING INTEREST ON DEPOSITS: 1995 1994 1993 1992 1991 1996 1995 ----------- ----------- ---------- ----------- ---------- ----------- ----------- FIXED CHARGES: INTEREST EXPENSE (OTHER THAN INTEREST ON DEPOSITS) 4,110 5,906 6,324 5,826 5,973 1,760 2,083 INTEREST FACTOR IN RENT EXPENSE 140 143 147 162 171 73 71 ----------- ----------- ---------- ----------- ---------- ----------- ----------- TOTAL FIXED CHARGES 4,250 6,049 6,471 5,988 6,144 1,833 2,154 INCOME: NET INCOME(LOSS) 3,464 3,422 (A) 1,919 (B) 722 (914)(C) 1,866 1,682 INCOME TAXES 2,121 1,189 941 696 677 1,144 1,075 FIXED CHARGES 4,250 6,049 6,471 5,988 6,144 1,833 2,154 ----------- ----------- ---------- ----------- ---------- ----------- ----------- TOTAL INCOME 9,835 10,660 9,331 7,406 5,907 4,843 4,911 =========== =========== ========== =========== ========== =========== =========== RATIO OF INCOME TO FIXED CHARGES EXCLUDING INTEREST ON DEPOSITS 2.31 1.76 1.44 1.24 0.96(D) 2.64 2.28 =========== =========== ========== =========== ========== =========== =========== INCLUDING INTEREST ON DEPOSITS: FIXED CHARGES: INTEREST EXPENSE 13,012 14,902 16,121 16,327 17,089 6,114 6,517 INTEREST FACTOR IN RENT EXPENSE 140 143 147 162 171 73 71 ----------- ----------- ---------- ----------- ---------- ----------- ----------- TOTAL FIXED CHARGES 13,152 15,045 16,268 16,489 17,260 6,187 6,588 INCOME: NET INCOME(LOSS) 3,464 3,422 (A) 1,919 (B) 722 (914)(C) 1,866 1,682 INCOME TAXES 2,121 1,189 941 696 677 1,144 1,075 FIXED CHARGES 13,152 15,045 16,268 16,489 17,260 6,187 6,588 ----------- ----------- ---------- ----------- ---------- ----------- ----------- TOTAL INCOME 18,737 19,656 19,128 17,907 17,023 9,197 9,345 =========== =========== ========== =========== ========== =========== =========== RATIO OF INCOME TO FIXED CHARGES INCLUDING INTEREST ON DEPOSITS 1.42 1.31 1.18 1.09 0.99(D) 1.49 1.42 =========== =========== ========== =========== ========== =========== ===========
(A) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 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) EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1991 WERE INADEQUATE TO COVER FIXED CHARGES BY THE AMOUNT OF $237 MILLION. EX-12.B 3 CALCULATION OF RATIO OF INCOME TO FIXED CHARGES CITICORP AND SUBSIDIARIES CALCULATION OF RATIO OF INCOME TO FIXED CHARGES INCLUDING PREFERRED STOCK DIVIDENDS
CITICORP AND SUBSIDIARIES CALCULATION OF RATIO OF INCOME TO FIXED CHARGES INCLUDING PREFERRED STOCK DIVIDENDS (In Millions) SIX MONTHS ENDED JUNE 30 EXCLUDING INTEREST ON DEPOSITS: 1995 1994 1993 1992 1991 1996 1995 ----------- ----------- ---------- ----------- ---------- ----------- ----------- FIXED CHARGES: INTEREST EXPENSE (OTHER THAN INTEREST ON DEPOSITS) 4,110 5,906 6,324 5,826 5,973 1,760 2,083 INTEREST FACTOR IN RENT EXPENSE 140 143 147 162 171 73 71 DIVIDENDS--PREFERRED STOCK 553 505 (A) 465 416 271 (A) 137 308 ----------- ----------- ---------- ----------- ---------- ----------- ----------- TOTAL FIXED CHARGES 4,803 6,554 6,936 6,404 6,415 1,970 2,462 INCOME: NET INCOME(LOSS) 3,464 3,422 (B) 1,919 (C) 722 (914)(D) 1,866 1,682 INCOME TAXES 2,121 1,189 941 696 677 1,144 1,075 FIXED CHARGES (EXCLUDING PREFERRED STOCK DIVIDENDS) 4,250 6,049 6,471 5,988 6,144 1,833 2,154 ----------- ----------- ---------- ----------- ---------- ----------- ----------- TOTAL INCOME 9,835 10,660 9,331 7,406 5,907 4,843 4,911 =========== =========== ========== =========== ========== =========== =========== RATIO OF INCOME TO FIXED CHARGES EXCLUDING INTEREST ON DEPOSITS 2.05 1.63 1.35 1.16 0.92(E) 2.46 1.99 =========== =========== ========== =========== ========== =========== =========== INCLUDING INTEREST ON DEPOSITS: FIXED CHARGES: INTEREST EXPENSE 13,012 14,902 16,121 16,327 17,089 6,114 6,517 INTEREST FACTOR IN RENT EXPENSE 140 143 147 162 171 73 71 DIVIDENDS--PREFERRED STOCK 553 505 (A) 465 416 271 (A) 137 308 ----------- ----------- ---------- ----------- ---------- ----------- ----------- TOTAL FIXED CHARGES 13,705 15,550 16,733 16,905 17,531 6,324 6,896 INCOME: NET INCOME(LOSS) 3,464 3,422 (B) 1,919 (C) 722 (914)(D) 1,866 1,682 INCOME TAXES 2,121 1,189 941 696 677 1,144 1,075 FIXED CHARGES (EXCLUDING PREFERRED STOCK DIVIDENDS) 13,152 15,045 16,268 16,489 17,260 6,187 6,588 ----------- ----------- ---------- ----------- ---------- ----------- ----------- TOTAL INCOME 18,737 19,656 19,128 17,907 17,023 9,197 9,345 =========== =========== ========== =========== ========== =========== =========== RATIO OF INCOME TO FIXED CHARGES INCLUDING INTEREST ON DEPOSITS 1.37 1.26 1.14 1.06 0.97(E) 1.45 1.36 =========== =========== ========== =========== ========== =========== ===========
(A) CALCULATED ON A BASIS OF AN ASSUMED TAX RATE OF 29% AND 34% FOR 1994 AND 1991, RESPECTIVELY. (B) NET INCOME FOR THE YEAR ENDED DECEMBER 31, 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) EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1991 WERE INADEQUATE TO COVER FIXED CHARGES BY THE AMOUNT OF $508 MILLION. -----END PRIVACY-ENHANCED MESSAGE-----