-----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, K6gv5bqgtCzQdFRYtOHGlP7QiANrqe5dOmL6Xa3zEXDd2bEcAR3xGAnb2APXsZNR 1E57SNDMDoQZvNK4b2Ub7Q== 0000020405-96-000085.txt : 19961021 0000020405-96-000085.hdr.sgml : 19961021 ACCESSION NUMBER: 0000020405-96-000085 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960930 ITEM INFORMATION: Other events FILED AS OF DATE: 19961015 SROS: CSX SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CITICORP CENTRAL INDEX KEY: 0000020405 STANDARD INDUSTRIAL CLASSIFICATION: 6021 IRS NUMBER: 132614988 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05378 FILM NUMBER: 96643751 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 3RD QTR SEPTEMBER 1996 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 15, 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 [NYSE symbol: CCI] Citicorp reports third quarter net income of $935 million and earnings per common share of $1.85 Excluding SAIF assessment, earnings were $975 million, up 11%, and earnings per share were $1.93, up 19% Third Quarter (Dollars in Millions, 1996 1995 Change except EPS) Adjusted Revenue $5,362 $4,983 8% Net Income 935 877 7% Earnings Per Share (Fully Diluted) $1.85 $1.62 14% Return on Common Equity (%) 19.87 20.12 - Return on Total Assets (%) 1.39 1.31 - Average Shares Outstanding (Fully 485.6 518.0 - Diluted) Excluding SAIF: Adjusted Revenue $5,426 $4,983 9% Net Income 975 877 11% Earnings Per Share (Fully Diluted) $1.93 $1.62 19% Return on Common Equity (%) 20.74 20.12 - Nine Months Adjusted Revenue $15,795 $14,571 8% Net Income 2,801 2,559 9% Earnings Per Share (Fully Diluted) $5.45 $4.72 15% Return on Common Equity (%) 20.27 20.90 - Excluding SAIF: Adjusted Revenue $15,859 $14,571 9% Net Income 2,841 2,559 11% Earnings Per Share (Fully Diluted) $5.53 $4.72 17% Return on Common Equity (%) 20.57 20.90 - On October 15, 1996, Citicorp reported that net income in the 1996 third quarter was $935 million, including an after-tax charge of $40 million related to the U.S. Savings Association Insurance Fund ("SAIF"). Excluding the charge, net income of $975 million increased 11% from the same 1995 quarter and earnings per fully diluted common share were up 19%. John S. Reed, Citicorp Chairman, said, "Our financial results continue on track. We are increasingly confident in our Business Directions strategy and we will continue to work on its execution." He also noted, "Corporate Banking activities made a strong contribution through focus on the growing needs of our customers around the world, while the Consumer businesses continued their global expansion. Citicorp through its balance of franchises -- Corporate and Consumer -- continues to generate a 20% return." Against Citicorp's Business Directions financial performance targets, and excluding the SAIF assessment, the company in the 1996 nine months achieved an 11% earnings gain, a return on common equity of 20.6%, a ratio of incremental revenue to expense of 2.1 to 1, and generation of an estimated $2.2 billion of free capital. During the quarter, the company generated an estimated $0.7 billion of free capital and repurchased 8.9 million shares of common stock for $756 million. Citicorp's Consumer businesses -- Citibanking, Cards and the Private Bank -- earned $506 million (excluding the SAIF assessment) on adjusted revenue of $3.4 billion, which increased 8% from the 1995 third quarter. Net income from serving corporate banking customers worldwide was $520 million on revenue of $1.7 billion, which rose 7% from the 1995 third quarter. Details follow: Consumer business results show revenue growth, but higher Cards credit costs Third Quarter (Dollars in Millions) 1996 1995 Change Adjusted Revenue Excluding SAIF $3,407 $3,144 8% Adjusted Operating Expense 1,832 1,704 8% Operating Margin Excluding SAIF 1,575 1,440 9% Credit Costs 803 633 27% Income before Taxes Excluding SAIF 722 757 (5%) Net Income Excluding SAIF 506 515 (2%) SAIF Assessment, after-tax 40 - - Net Income 466 515 (10%) Return on Assets (%) 1.45 1.67 - Nine Months Adjusted Revenue Excluding SAIF $9,979 $9,124 9% Adjusted Operating Expense 5,376 5,071 6% Operating Margin Excluding SAIF 4,603 4,053 14% Credit Costs 2,271 1,785 27% Income before Taxes Excluding SAIF 2,182 2,118 3% Net Income Excluding SAIF 1,508 1,412 7% SAIF Assessment, after-tax 40 - - Net Income 1,468 1,412 4% Return on Assets (%) 1.56 1.59 - The Consumer businesses earned $466 million in the third quarter of 1996, compared with $515 million in the 1995 quarter, to reach $1.5 billion in the 1996 nine months, up $56 million or 4% from the first nine months of 1995. 1996 earnings reflected Citicorp's share of the SAIF assessments under legislation enacted on September 30, 1996 to replenish the deposit insurance fund for savings banks. The $64 million pretax assessment, which was charged against net interest revenue, was first discussed in Citicorp's third quarter 1995 10-Q filing and approximates 66 basis points on $9.7 billion of covered deposits. Future insurance premiums paid by Citicorp's savings bank subsidiary are expected to decline. Excluding SAIF, net income for the nine months grew 7%. Consumer businesses in the emerging markets earned $210 million in the quarter and $660 million for the nine months of 1996, increases of $6 million or 3% and $68 million or 11%, respectively, over the 1995 periods. Emerging markets revenue grew in the quarter by $94 million or 12%, while expense for the franchise grew $83 million or 19%. Net income in the developed markets (excluding the SAIF assessment) was $296 million in the quarter and $848 million in the nine months, down $15 million or 5% and up $28 million or 3%, respectively, from the 1995 periods, as higher U.S. bankcards credit costs countered continued revenue growth. Citibanking Citibanking -- which delivers products and services to customers through Citicorp's worldwide branch network and electronic delivery systems -- earned $199 million and $558 million (excluding the SAIF assessment), respectively, in the 1996 third quarter and nine months. Earnings grew $37 million or 23%, and $111 million or 25%, from the respective 1995 periods. Revenue in the quarter of $1.5 billion (excluding the SAIF assessment) was up $93 million or 7% from a year-ago, reflecting higher business volumes and $42 million from the sale of the consumer mortgage portfolio in the United Kingdom, partially offset by continued spread tightening in most markets. Expense growth in the quarter was $74 million or 8% from a year ago, including 15% in the emerging markets and 5% in the developed markets. Investment spending continued on Citibanking initiatives, particularly on upgrading systems and delivery of services worldwide through technology convergence, together with branch, product, and service expansion, and further Citibank brand development. Model Branches, which represent the Citibanking branch standard for enhancing customer relationships and efficiency, grew by 18 in the quarter, to reach 525 worldwide, 46% of total consumer branches. PC banking was introduced in Belgium and Spain, making six countries where customers can conduct their banking through personal computers. Credit costs of $160 million in the quarter were down $1 million or 1% compared to the second quarter of 1996 and down $23 million or 13% from a year ago, reflecting continued improvement in Latin America and, compared with a year ago, lower losses in Europe, particularly Germany. The CitiSelect family of asset allocation mutual funds expanded its offerings with Folio 500 during the quarter. Since their launch last June, CitiSelect portfolios in the U.S. and Asia have attracted $580 million of consumer investments. Cards Cards worldwide -- MasterCard, Visa, Diners Club and private label cards -- earned $243 million in the third quarter, down $47 million or 16% from a year ago, and $749 million in the nine months of 1996, down $59 million or 7% from the comparable 1995 period. Earnings reflected revenue improvements of 10% for the quarter and 11% for the nine month period, as well as increases in overall expense levels and, particularly in the U.S. bankcards business, continued increases in credit costs. The emerging markets Cards business represented approximately 29% of third quarter worldwide Cards earnings. U.S. bankcards revenue in the third quarter grew 9% over the year-ago quarter, reflecting growth in managed receivables, up $2.0 billion or 5% from a year ago to $44.0 billion at September 30, 1996, and spread improvement. Managed receivables grew $1.2 billion or 3% from the preceding 1996 quarter, primarily reflecting seasonal trends. Charge volumes in the U.S. bankcards business increased from the year-ago quarter by $2.8 billion or 12% to $24.9 billion. Receivable volume growth has been affected by competitive pressures, credit tightening on the part of Citicorp, and moderating increases in consumer personal debt levels. Third quarter revenue in the emerging markets Cards businesses grew 19% over a year ago, reflecting continued growth in the Asia Pacific and Middle East businesses, where charge volumes on Citicorp-issued cards increased 20% from the year-ago quarter, and improvements in Latin America, principally Brazil. Cards in force in Latin America have grown 17% since last year. The Citibank AAdvantage card was launched in Trinidad, adding to Citicorp's worldwide consumer presence. The number of cards in force worldwide, including those issued by affiliates, reached 60 million at the end of the quarter, an increase of 4 million or 7% from a year ago. In addition, Diners Club was awarded IBM's corporate card business in Europe, Asia, Canada and half of its U.S. business. Operating expense in the quarter increased 6% from the year-ago quarter. Expense levels in U.S. bankcards were essentially unchanged, consistent with the lower volume growth trends. Expense grew 32% in the emerging markets Cards businesses as investment spending and franchise development continued. Statement processing for the Caribbean region Cards business was moved to Hagerstown, Maryland, as part of an ongoing program to achieve efficiencies and lower unit costs. Credit costs for worldwide Cards continued to increase. Credit costs in the quarter were $639 million, up $28 million or 5% from the 1996 second quarter, and up $191 million or 43% from the 1995 third quarter. Credit costs for U.S. bankcards increased to $550 million, or 5.11% of average managed loans, up $28 million from $522 million or 4.99% in the preceding quarter, and from $379 million or 3.70% a year-ago. Bankruptcies represented 38% of gross U.S. bankcard write-offs compared with 39% in the preceding quarter and 36% in the 1995 third quarter. Managed U.S. bankcard loans delinquent 90 days or more were 1.86% of the portfolio, compared with 1.73% at the end of the preceding quarter and 1.54% a year ago. Citicorp continues to write off bankrupt accounts upon notice of filing of bankruptcy. Credit costs in the non-U.S. bankcards portfolio, which primarily includes bankcards in the emerging markets, Europe and Japan, as well as worldwide Diners Club, were $89 million or 4.35% of average loans, in the third quarter, compared with $89 million or 4.65% in the preceding quarter, and $69 million or 4.06% in the 1995 third quarter. Loans delinquent 90 days or more improved to 2.13% of the portfolio, compared with 2.25% at the end of the preceding quarter and 2.15% at the end of the 1995 third quarter. Cards continued to build reserves for possible credit losses, with a provision of $48 million above net credit losses in the quarter, consistent with $49 million in the preceding quarter and $48 million in the same year-ago quarter. Private Bank Private Bank net income of $64 million and $201 million in the third quarter and nine months of 1996, respectively, was up $1 million or 2% and $44 million or 28% from the comparable 1995 periods. Income before taxes was $72 million, down 9%, in the third quarter and $250 million, up 30%, for the nine months. Revenue of $252 million and $749 million in the third quarter and nine months of 1996 was up $13 million or 5% and $56 million or 8% from the comparable year-ago periods. The 11% increase in expense in the quarter was attributable to higher salary levels and reengineering efforts expected to result in future cost efficiencies. Expense for the nine months, including the effects of reengineering, was up 7%. Total credit costs of $4 million in the quarter compared with $2 million in the year-ago period, which reflected the benefit from dispositions of OREO. For the nine months, Private Bank had net credits of $5 million, compared with net charges of $28 million as the U.S. business benefited from recoveries and lower OREO writedowns. Overall credit trends improved with delinquencies down to 1.61% of loans from 2.32% a year earlier, reflecting an overall decrease in the level of non-performing assets. Client business volumes under management at the end of the quarter totaled $93 billion, up $8 billion from a year earlier. Growth was balanced across most product lines. Corporate Banking reports higher net income with improved contributions from both Emerging Markets and Global Relationship Banking Third Quarter (Dollars in Millions) 1996 1995 Change Adjusted Revenue $1,746 $1,626 7% Adjusted Operating Expense 1,127 1,011 11% Operating Margin 619 615 1% Credit Costs (60) 61 - Income before Taxes 679 529 28% Net Income 520 389 34% Return on Assets (%) 1.53 1.10 - Nine Months Adjusted Revenue $5,158 $4,959 4% Adjusted Operating Expense 3,222 2,988 8% Operating Margin 1,936 1,971 (2%) Credit Costs (72) 86 - Income before Taxes 2,008 1,810 11% Net Income 1,629 1,348 21% Return on Assets (%) 1.58 1.23 - Net income from global corporate banking activities of $520 million in the third quarter increased 34% from the 1995 third quarter on revenue of $1.7 billion, which rose 7%. Return on average assets was 1.53%, up from 1.10% a year ago. Net income from Emerging Markets corporate banking was $345 million and Global Relationship Banking's net income was $175 million (which does not include business done in Emerging Markets for customer relationships managed jointly with the Emerging Markets business). Citibank placed first in foreign exchange in both Corporate Finance magazine's poll for providing global services to corporations and Emerging Markets Investor magazine's poll of 1,000 international fund managers. Emerging Markets Net income from banking for corporate customers in the emerging markets totaled $345 million in the quarter, up $83 million or 32% from a year ago. Return on assets of 2.25% increased from 2.08% in the 1995 third quarter. Pretax income totaled $436 million, up 23% from the 1995 third quarter with an effective income tax rate of 21%, compared with an effective tax rate of 26% a year ago. Revenue of $815 million increased $98 million or 14% from the 1995 third quarter. The revenue growth included a $36 million or 20% increase in trading-related revenue coupled with strong momentum in transaction banking services. Revenue also included $28 million arising from the Panama refinancing agreement concluded during the quarter. About 20% of the revenue in the Emerging Markets business was attributable to business from multinational companies managed jointly with Global Relationship Banking, with that revenue having grown at a double digit rate from the third quarter of 1995. Expense of $426 million increased $80 million or 23% from the 1995 third quarter, primarily reflecting investment spending to build the franchise and costs associated with implementing Citicorp's plan to gain market share in selected emerging market countries. Since the third quarter of 1995, operations were expanded around the world by opening new or additional offices or converting representative offices to branches or subsidiaries in China, Israel, Lebanon, Peru, Russia, Slovakia and Tanzania. In addition, the Citi Islamic Bank was opened in Bahrain. Credit costs, including recoveries of $54 million attributable to the refinancing agreements concluded with Panama and Croatia, remained low during the quarter, and resulted in a net credit of $47 million, compared with a net charge of $16 million in the 1995 third quarter. Debt restructuring activities continued with Peru during the quarter. Global Relationship Banking Net income from the Global Relationship Banking business in North America, Europe and Japan totaled $175 million, up $48 million or 38% from the 1995 third quarter. Pretax income was $243 million, up 40% from the 1995 third quarter. Average assets were reduced by $16 billion, primarily in trading-related activities, from the third quarter of 1995, as Global Relationship Banking continued to focus on asset utilization and improving returns. Return on average assets of 0.94% improved from 0.56% in the 1995 third quarter. Revenue of $931 million grew $22 million from the 1995 third quarter, and reflects growth in corporate finance and transaction banking services, together with strong trading and venture capital results. Trading-related revenue of $259 million declined $61 million from the unusually strong third quarter 1995 level. Venture capital revenues of $129 million improved $46 million from the 1995 third quarter, reflecting the robust U.S. equity markets. Expense of $701 million increased $36 million or 5% compared with the 1995 quarter, primarily reflecting increased spending on technology and risk management initiatives, and volume-related expenses in transaction banking services. Credit costs in the quarter were a net credit of $13 million, compared with a charge of $45 million in the 1995 third quarter. The third quarter of 1995 also included a provision in excess of net write-offs of $25 million. Other Items Citicorp's effective tax rate was 37% in the third quarters of 1996 and 1995, and 38% for the nine month periods of 1996 and 1995. Income taxes are attributed to core businesses on the basis of local tax rates, which resulted in effective tax rates of 26% and 30% in the 1996 and 1995 third quarters, respectively, and 25% and 30% for the nine month periods, 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. At September 30, 1996, total reserves (including reserves for sold Consumer portfolios) were $5.9 billion. Citicorp continued to build its allowance for credit losses, adding $50 million above net credit losses, primarily related to Cards, consistent with the practice in recent quarters. Tier 1 capital was $19.2 billion, total capital was estimated at $28.5 billion, and the Tier 1 and total capital ratios were estimated at 8.4% and 12.4%, respectively. The ratio of common equity to total assets was 6.7%. The number of shares acquired since June 20, 1995, when the Board of Directors authorized the stock repurchase program, totaled 51.1 million for an outlay of $3.8 billion. As expanded in January 1996, the program is authorized to make total purchases for up to $4.5 billion. Average common shares outstanding for the purpose of computing fully diluted earnings per share in the 1996 third quarter were 486 million and 492 million in the preceding 1996 quarter, principally reflecting the net effect of the share repurchase program and employee stock plans. Tables detailing key financial data, an analysis of earnings, business results and credit indicators follow, along with selected financial statements. Further details concerning the financial results will be available next month in Citicorp's Form 10-Q. FINANCIAL SUMMARY Third Quarter Nine Months 1996 1995 Change 1996 1995 Change Net Income (In $935 $877 7% $2,801 $2,559 9% Millions of Dollars) Net Income Per Share Common & Common Equivalent Shares $ 1.85 $ 1.79 3% $ 5.53 $ 5.29 5% Assuming Full $ 1.85 $ 1.62 14% $ 5.45 $ 4.72 15% Dilution Common Stockholders' Equity Per Share $38.94 $37.99 3% Closing Stock Price At Quarter End $90.63 $70.75 28% Financial Ratios Return on Total 1.39% 1.31% 1.40% 1.27% Assets Return on Common Stockholders' 19.87% 20.12% 20.27% 20.90% Equity Capital (Dollars in Billions) Tier 1 $19.2 $18.6 Total (Tier 1 and 2)(A) 28.5 27.3 Tier 1 Ratio (A) 8.4% 8.4% Total Ratio (Tier 1 12.4% 12.3% and 2) (A) Common Equity as a Percentage of 6.74% 6.27% Total Assets Total Equity as a Percentage of 7.50% 7.57% Total Assets Dividends Declared (In Millions of Dollars) Common $213 $127 $639 $365 Preferred 38 83 123 271 (A) 1996 estimated. Earnings Analysis (In Millions of Dollars) Third Quarter Nine Months 1996 1995 Change 1996 1995 Change Total Revenue $5,010 $4,757 5% $14,831 $13,889 7% Effect of Credit Card 360 219 64% 1,003 667 50% Securitizations Net Cost To Carry (A) (8) 7 NM (39) 15 NM Adjusted Revenue 5,362 4,983 8% 15,795 14,571 8% Total Operating 3,078 2,793 10% 8,916 8,284 8% Expense Net OREO Benefits (B) 8 33 (76%) 37 46 (20%) Adjusted Operating 3,086 2,826 9% 8,953 8,330 7% Expense Operating Margin 2,276 2,157 6% 6,842 6,241 10% Consumer Credit 803 633 27% 2,271 1,785 27% Costs (C) Commercial Credit (60) 61 NM (72) 86 NM Costs (D) Operating Margin Less Credit 1,533 1,463 5% 4,643 4,370 6% Costs Additional 50 75 (33%) 150 225 (33%) Provision (E) Income Before Taxes 1,483 1,388 7% 4,493 4,145 8% Income Taxes 548 511 7% 1,692 1,586 7% Net Income $935 $ 877 7% $ 2,801 $ 2,559 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 of commercial OREO. (C) Principally Consumer net credit write-offs adjusted for the effect of credit card receivables securitizations. (D) Includes commercial net credit write-offs, net cost to carry, and net OREO benefits. (E) Primarily charges for credit losses in excess of net write-offs. NM Not meaningful, as percentage equals or exceeds 100%. Earnings Summary Third Quarter Nine Months (Dollars In 1996 1995(A) Change 1996 1995(A) Change Millions) Consumer $466 $515 (10%) $1,468 $1,412 4% Corporate Banking (B) 520 389 34% 1,629 1,348 21% Core Businesses 986 904 9% 3,097 2,760 12% Corporate Items (51) (27) (89%) (296) (201) (47%) Total Citicorp $935 $877 7% $2,801 $2,559 9% Supplemental Information: Consumer: Citibanking $159 $162 (2%) $ 518 $ 447 16% Cards 243 290 (16%) 749 808 (7%) Private Bank 64 63 2% 201 157 28% Total $466 $515 (10%) $1,468 $1,412 4% Developed Markets $256 $311 (18%) $ 808 $ 820 (1%) Emerging Markets 210 204 3% 660 592 11% Total $466 $515 (10%) $1,468 $1,412 4% Corporate Banking (B): Emerging Markets $345 $262 32% $1,169 $ 875 34% Global Relationship 175 127 38% 460 473 (3%) Banking Total $520 $389 34% $1,629 $1,348 21% (A) Reclassified to conform to latest quarter's presentation. (B) Corporate Banking activities also include the results of the Cross-Border Refinancing and the North America Commercial Real Estate portfolios in Emerging Markets and Global Relationship Banking, respectively. Consumer Third Quarter Nine Months (Dollars In 1996 1995(A) Change 1996 1995(A) Change Millions) Total Revenue (B) $2,982 $2,922 2% $8,921 $8,447 6% Effect of Credit Card 360 219 64% 1,003 667 50% Securitizations Net Cost to Carry Cash-Basis Loans 1 3 (67%) (9) 10 NM and OREO Adjusted Revenue 3,343 3,144 6% 9,915 9,124 9% Total Operating 1,834 1,700 8% 5,380 5,076 6% Expense Net OREO Costs (2) 4 NM (4) (5) (20%) Adjusted Operating 1,832 1,704 8% 5,376 5,071 6% Expense Operating Margin 1,511 1,440 5% 4,539 4,053 12% Net Write-offs 440 415 6% 1,273 1,103 15% Effect of Credit Card 360 219 64% 1,003 667 50% Securitizations Net Cost to Carry and Net OREO 3 (1) NM (5) 15 NM Costs Credit Costs 803 633 27% 2,271 1,785 27% Operating Margin Less Credit Costs 708 807 (12%) 2,268 2,268 - Additional 50 50 - 150 150 - Provision Income Before Taxes 658 757 (13%) 2,118 2,118 - Income Taxes 192 242 (21%) 650 706 (8%) Net Income $ 466 $ 515 (10%) $1,468 $1,412 4% Average Assets (In Billions of $128 $122 5% $126 $119 6% Dollars) Return on Assets 1.45% 1.67% - 1.56% 1.59% - (A) Reclassified to conform to latest quarter's presentation. (B) Includes $64 million SAIF assessment in the 1996 periods. NM Not meaningful, as percentage equals or exceeds 100%. (Dollars In Third Quarter % Nine Months % Millions) Citibanking 1996 1995(A) Change 1996 1995(A) Change Revenue (B) $1,408 $1,379 2 $4,265 $4,018 6 Operating Expense 1,021 947 8 3,020 2,799 8 Operating Margin 387 432 (10) 1,245 1,219 2 Credit Costs 160 183 (13) 479 510 (6) Operating Margin Less Credit Costs 227 249 (9) 766 709 8 Additional 2 2 - 4 14 (71) Provision Income Before Taxes 225 247 (9) 762 695 10 Income Taxes 66 85 (22) 244 248 (2) Net Income $ 159 $ 162 (2) $ 518 $ 447 16 Average Assets (In Billions of $83 $80 4 $82 $79 4 Dollars) Return on Assets 0.76% 0.80% - 0.84% 0.76% - Cards Adjusted Revenue $1,683 $1,526 10 $4,901 $4,413 11 Adjusted Operating 635 599 6 1,852 1,800 3 Expense Operating Margin 1,048 927 13 3,049 2,613 17 Credit Costs 639 448 43 1,797 1,247 44 Operating Margin Less Credit Costs 409 479 (15) 1,252 1,366 (8) Additional 48 48 - 146 136 7 Provision Income Before Taxes 361 431 (16) 1,106 1,230 (10) Income Taxes 118 141 (16) 357 422 (15) Net Income $ 243 $ 290 (16) $ 749 $ 808 (7) Average Assets (In Billions of $28 $27 4 $28 $25 12 Dollars) Return on Assets (C) 3.45% 4.26% - 3.57% 4.32% - Private Bank Adjusted Revenue $252 $239 5 $749 $693 8 Adjusted Operating 176 158 11 504 472 7 Expense Operating Margin 76 81 (6) 245 221 11 Credit Costs 4 2 NM (5) 28 NM Operating Margin Less Credit Costs 72 79 (9) 250 193 30 Additional - - - - - - Provision Income Before Taxes 72 79 (9) 250 193 30 Income Taxes 8 16 (50) 49 36 36 Net Income $ 64 $ 63 2 $201 $157 28 Average Assets (In Billions of $17 $15 13 $16 $15 7 Dollars) Return on Assets 1.50% 1.67% - 1.68% 1.40% - (A) Reclassified to conform to latest quarter's presentation. (B) Includes $64 million SAIF assessment in the 1996 periods. (C) Adjusted for the effect of credit card securitizations, the return on managed assets for worldwide Cards was 1.77% in the 1996 quarter and 2.28% in the year-ago quarter. For the nine months of 1996 and 1995, the return on managed assets was 1.86% and 2.22%, respectively. NM Not meaningful, as percentage equals or exceeds 100%. (Dollars In Third Quarter % Nine Months % Millions) Developed Markets 1996 1995(A) Change 1996 1995(A) Change Adjusted Revenue (B) $2,456 $2,351 4 $7,262 $6,824 6 Adjusted Operating 1,310 1,265 4 3,869 3,791 2 Expense Operating Margin 1,146 1,086 6 3,393 3,033 12 Credit Costs 714 548 30 1,991 1,594 25 Operating Margin Less Credit Costs 432 538 (20) 1,402 1,439 (3) Additional 47 46 2 136 126 8 Provision Income Before Taxes 385 492 (22) 1,266 1,313 (4) Income Taxes 129 181 (29) 458 493 (7) Net Income $ 256 $ 311 (18) $ 808 $ 820 (1) Average Assets (In Billions of $89 $87 2 $88 $85 4 Dollars) Return on Assets 1.14% 1.42% - 1.23% 1.29% - Emerging Markets Adjusted Revenue $887 $793 12 $2,653 $2,300 15 Adjusted Operating 522 439 19 1,507 1,280 18 Expense Operating Margin 365 354 3 1,146 1,020 12 Credit Costs 89 85 5 280 191 47 Operating Margin Less Credit Costs 276 269 3 866 829 4 Additional 3 4 (25) 14 24 (42) Provision Income Before Taxes 273 265 3 852 805 6 Income Taxes 63 61 3 192 213 (10) Net Income $210 $204 3 $ 660 $ 592 11 Average Assets (In Billions of $39 $35 11 $38 $34 12 Dollars) Return on Assets 2.14% 2.31% - 2.32% 2.33% - (A) Reclassified to conform to latest quarter's presentation. (B) Includes $64 million SAIF assessment in the 1996 periods. Corporate Banking Third Quarter % Nine Months % (Dollars In 1996 1995(A) Change 1996 1995(A) Change Millions) Total Revenue $1,755 $1,622 8 $5,188 $4,954 5 Net Cost to Carry Cash-Basis Loans (9) 4 NM (30) 5 NM and OREO Adjusted Revenue 1,746 1,626 7 5,158 4,959 4 Total Operating 1,117 982 14 3,181 2,937 8 Expense Net OREO Benefits 10 29 (66) 41 51 (20) Adjusted Operating 1,127 1,011 11 3,222 2,988 8 Expense Operating Margin 619 615 1 1,936 1,971 (2) Net Write-offs (41) 86 NM (1) 132 NM (Recoveries) Net Cost to Carry and Net OREO (19) (25) (24) (71) (46) 54 Benefits Credit Costs (60) 61 NM (72) 86 NM Operating Margin Less Credit Costs 679 554 23 2,008 1,885 7 Additional - 25 NM - 75 NM Provision Income Before Taxes 679 529 28 2,008 1,810 11 Income Taxes 159 140 14 379 462 (18) Net Income $ 520 $ 389 34 $1,629 $1,348 21 Average Assets (In Billions of $135 $140 (4) $138 $146 (5) Dollars) Return on Assets 1.53% 1.10% - 1.58% 1.23% - (A) Reclassified to conform to latest quarter's presentation. NM Not meaningful, as percentage equals or exceeds 100%. (Dollars In Third Quarter % Nine Months % Millions) Emerging Markets 1996 1995(A) Change 1996 1995(A) Change Adjusted Revenue $815 $717 14 $2,532 $2,190 16 Adjusted Operating 426 346 23 1,197 1,013 18 Expense Operating Margin 389 371 5 1,335 1,177 13 Credit Costs (47) 16 NM (45) 33 NM Operating Margin Less Credit Costs 436 355 23 1,380 1,144 21 Additional - - - - - - Provision Income Before Taxes 436 355 23 1,380 1,144 21 Income Taxes 91 93 (2) 211 269 (22) Net Income $345 $262 32 $1,169 $ 875 34 Average Assets (In Billions of $61 $50 22 $58 $49 18 Dollars) Return on Assets 2.25% 2.08% - 2.69% 2.39% - Global Relationship Banking Adjusted Revenue $931 $909 2 $2,626 $2,769 (5) Adjusted Operating 701 665 5 2,025 1,975 3 Expense Operating Margin 230 244 (6) 601 794 (24) Credit Costs (13) 45 NM (27) 53 NM Operating Margin Less Credit 243 199 22 628 741 (15) Costs Additional - 25 NM - 75 NM Provision Income Before Taxes 243 174 40 628 666 (6) Income Taxes 68 47 45 168 193 (13) Net Income $175 $127 38 $ 460 $ 473 (3) Average Assets (In Billions of $74 $90 (18) $80 $97 (18) Dollars) Return on Assets 0.94% 0.56% - 0.77% 0.65% - (A) Reclassified to conform to latest quarter's presentation. NM Not meaningful, as percentage equals or exceeds 100%. Corporate Items (A) Third Quarter % Nine Months % (In Millions of 1996 1995(B) Change 1996 1995(B) Change Dollars) Revenue $273 $213 28 $ 722 $ 488 48 Operating Expense 127 111 14 355 271 31 Income Before Taxes 146 102 43 367 217 69 Income Taxes 197 129 53 663 418 59 Net Loss $(51) $(27) 89 $(296) $(201) 47 (A) Corporate Items includes revenue derived from charging businesses for funds employed (based upon a marginal cost of funds concept), unallocated corporate costs, and the offset created by attributing income taxes to the core businesses on a local tax-rate basis. (B) Reclassified to conform to latest quarter's presentation. Consumer Loan Delinquency Amounts, Net Credit Losses, and Ratios Total 90 Days or More Net Credit Losses Loans (A) Past Due Sept. 30, Sept. June Sept. 3rd 2nd 3rd 1996 30, 30, 30, Qtr. Qtr. Qtr. 1996 1996 1995 1996 1996 1995 (Dollars in Billions) (Dollars in (Dollars in Millions) Millions) Citibanking $ 65.2 $2,527 $2,663 $2,759 $160 $161 $183 Ratio 3.87% 4.05% 4.26% 0.95% 0.99% 1.14% Cards U.S. Bankcards 43.5 809 732 643 550 522 379 Ratio 1.86% 1.73% 1.54% 5.11% 4.99% 3.70% Other 8.3 178 180 150 89 89 69 Ratio 2.13% 2.25% 2.15% 4.35% 4.65% 4.06% Private Bank 15.3 247 254 321 1 (3) 3 Ratio 1.61% 1.66% 2.32% 0.05% NM 0.07% Total Managed 132.3 3,761 3,829 3,873 800 769 634 Ratio 2.84% 2.91% 3.04% 2.40% 2.38% 2.02% Effect of Credit Card (26.1) (499) (452) (387) (360) (349) (219) Securitizations Total On-Balance $106.2 $3,262 $3,377 $3,486 $440 $420 $415 Sheet Ratio 3.07% 3.20% 3.39% 1.64% 1.62% 1.63% Supplemental Information (Managed Portfolio): Developed $100.6 $3,377 $3,448 $3,599 $711 $672 $549 Ratio 3.36% 3.42% 3.63% 2.79% 2.70% 2.24% Emerging 31.7 384 381 274 89 97 85 Ratio 1.21% 1.25% 0.98% 1.13% 1.30% 1.24% (A) End of period, net of unearned income. NM Not meaningful, as recoveries result in a negative percentage. Consumer Loan Balances End of Period (A) Average (A) Sept. June Sept. 3rd 2nd 3rd (In Billions of Dollars) 30, 30, 30, Qtr. Qtr. Qtr. 1996 1996 1995 1996 1996 1995 Managed $132.3 $131.4 $127.2 $132.3 $130.3 $124.7 Effect of Credit Card (26.1) (26.0) (24.4) (26.2) (26.2) (23.6) Securitizations On-Balance Sheet $106.2 $105.4 $102.8 $106.1 $104.1 $101.1 (A) Net of unearned income. Cash-Basis and Renegotiated Loans Sept. 30, Dec. 31, Sept. 30, (In Millions of Dollars) 1996 1995 1995 Commercial Cash-Basis Loans Collateral-Dependent (at Lower of Cost or Collateral Value) (A) $588 $ 779 $ 899 Other 809 755 775 Total Commercial Cash-Basis Loans $1,397 $1,534 $1,674 Commercial Renegotiated Loans $330 $421 $395 Consumer Loans On Which Accrual of Interest Has Been $2,333 $2,660 $2,665 Suspended (A) A cash-basis loan is defined as collateral dependent when repayment is expected to be provided solely by the underlying collateral and there are no other available and reliable sources of repayment, in which case the loans are written down to the lower of cost or collateral value. Other Real Estate Owned and Assets Pending Disposition (A) Sept. 30, Dec. 31, Sept. 30, (In Millions of Dollars) 1996 1995 1995 Consumer OREO $464 $ 529 $ 561 Commercial OREO 492 625 960 Total OREO $956 $1,154 $1,521 Assets Pending Disposition (B) $182 $205 $195 (A) Carried at lower of cost or collateral value. (B) Represents Consumer residential mortgage loans that have a high probability of foreclosure. Allowance for Credit Losses Sept. 30, Dec. 31, Sept. 30, (Dollars In Millions) 1996 1995 1995 Consumer $2,036 $1,944 $1,931 Commercial 3,424 3,424 3,410 Total $5,460 $5,368 $5,341 Allowance As a Percent of Total Loans: Consumer 1.92% 1.84% 1.88% Commercial 5.44% 5.71% 5.89% Total 3.23% 3.24% 3.32% Reserves For Sold Consumer $481 $486 $473 Portfolios Net Write-offs, Excess Provision, and Provision for Credit Losses Third Quarter Nine Months (In Millions of Dollars) 1996 1995 1996 1995 Net Write-offs (Recoveries): Consumer (A) $800 $634 $2,276 $1,770 Commercial (41) 86 (1) 122 Total Adjusted Net Write-offs 759 720 2,275 1,892 Effect of Credit Card (360) (219) (1,003) (667) Securitizations Total $399 $501 $1,272 $1,225 Excess Provision: Consumer $50 $50 $150 $150 Commercial - 25 - 75 Total $50 $75 $150 $225 Provision for Credit Losses: Consumer $490 $465 $1,423 $1,253 Commercial (41) 111 (1) 207 Total $449 $576 $1,422 $1,460 (A) Adjusted for the effect of credit card securitizations. Consolidated Statement of Income CITICORP and Subsidiaries Third Quarter Nine Months (In Millions of % % Dollars, 1996 1995 Change 1996 1995 Change Except Per Share Amounts) Interest Revenue $5,815 $5,795 - $17,342 $17,105 1 Interest Expense 3,106 3,197 (3) 9,220 9,714 (5) Net Interest 2,709 2,598 4 8,122 7,391 10 Revenue Provision for 449 576 (22) 1,422 1,460 (3) Credit Losses Net Interest Revenue after 2,260 2,022 12 6,700 5,931 13 Provision for Credit Losses Fees, Commissions, and Other Revenue Fees and 1,363 1,268 7 4,024 3,793 6 Commissions Foreign Exchange 221 250 (12) 640 878 (27) Trading Account 224 182 23 420 363 16 Securities 5 21 (76) 146 65 NM Transactions Other Revenue 488 438 11 1,479 1,399 6 Total Fees, Commissions, 2,301 2,159 7 6,709 6,498 3 and Other Revenue Operating Expense Salaries 1,240 1,122 11 3,584 3,321 8 Employee Benefits 338 338 - 1,006 979 3 Total Employee 1,578 1,460 8 4,590 4,300 7 Expense Net Premises and Equipment 471 433 9 1,367 1,260 8 Expense Other Expense 1,029 900 14 2,959 2,724 9 Total Operating 3,078 2,793 10 8,916 8,284 8 Expense Income Before Taxes 1,483 1,388 7 4,493 4,145 8 Income Taxes 548 511 7 1,692 1,586 7 Net Income $ 935 $ 877 7 $ 2,801 $ 2,559 9 Income Applicable to Common Stock $897 $798 12 $2,682 $2,290 17 Earnings Per Share: On Common and Common $1.85 $1.79 3 $5.53 $5.29 5 Equivalent Shares Assuming Full $1.85 $1.62 14 $5.45 $4.72 15 Dilution Consolidated Balance Sheet CITICORP and Subsidiaries Sept. 30, Dec. 31, % (In Millions of Dollars) 1996 1995 Change Assets Cash and Due from Banks $ 7,304 $ 5,723 28 Deposits at Interest with Banks 11,993 9,028 33 Securities, At Fair Value Available for Sale 24,716 18,213 36 Venture Capital 1,959 1,854 6 Trading Account Assets 28,432 32,093 (11) Federal Funds Sold and Securities Purchased Under Resale Agreements 11,258 8,113 39 Loans, Net of Unearned Income Consumer 106,205 105,643 1 Commercial 62,922 59,999 5 Total Loans 169,127 165,642 2 Allowance for Credit Losses (5,460) (5,368) 2 Customers' Acceptance Liability 2,270 1,542 47 Premises and Equipment, Net 4,570 4,339 5 Interest and Fees Receivable 3,016 2,914 4 Other Assets 12,745 12,760 - Total $271,930 $256,853 6 Liabilities Non-Interest-Bearing Deposits in $ 13,850 $ 13,388 3 U.S. Offices Interest-Bearing Deposits in U.S. 38,337 36,700 4 Offices Non-Interest-Bearing Deposits in 8,965 8,164 10 Offices Outside the U.S. Interest-Bearing Deposits in Offices 118,167 108,879 9 Outside the U.S. Total Deposits 179,319 167,131 7 Trading Account Liabilities 18,430 18,274 1 Purchased Funds and Other Borrowings 17,580 16,334 8 Acceptances Outstanding 2,317 1,559 49 Accrued Taxes and Other Expense 5,964 5,719 4 Other Liabilities 8,593 9,767 (12) Long-Term Debt and Subordinated 19,330 18,488 5 Capital Notes Stockholders' Equity Preferred Stock (Without par value) 2,078 3,071 (32) Common Stock ($1.00 par value) 506 461 10 Issued Shares: 506,298,235 and 461,319,265, respectively Surplus 6,438 5,702 13 Retained Earnings 13,566 12,190 11 Net Unrealized Gains - Securities 581 132 NM Available for Sale Foreign Currency Translation (475) (437) 9 Common Stock in Treasury, at Cost (2,297) (1,538) 49 Shares 35,815,022 and 34,030,205, respectively Total Stockholders' Equity 20,397 19,581 4 Total $271,930 $256,853 6 Net Interest Revenue 3rd 2nd 1st 4th 3rd Statistics Qtr. Qtr. Qtr. Qtr. Qtr. (Taxable Equivalent Basis)(A) 1996 1996 1996 1995 1995 (In Millions of Dollars) Adjusted Net Interest Revenue Excluding SAIF (B): $3,394 $3,351 $3,263 $3,106 $3,114 SAIF Assessment (64) - - - - Adjusted Net Interest Revenue(B) 3,330 3,351 3,263 3,106 3,114 Effect of Credit Card (613) (615) (570) (537) (508) Securitizations Total $2,717 $2,736 $2,693 $2,569 $2,606 (In Billions of Dollars) Adjusted Average Interest- $258.8 $256.8 $254.6 $251.0 $245.1 Earning Assets (B): Effect of Credit Card (26.2) (26.2) (25.9) (25.2) (23.6) Securitizations Total $232.6 $230.6 $228.7 $225.8 $221.5 Adjusted Net Interest Margin Excluding SAIF (B) 5.22% 5.25% 5.15% 4.91% 5.04% SAIF Assessment (.10%) -% -% -% -% Adjusted Net Interest Margin(B): 5.12% 5.25% 5.15% 4.91% 5.04% Effect of Credit Card (.47)% (.48)% (.41)% (.40)% (.37)% Securitizations Total 4.65% 4.77% 4.74% 4.51% 4.67% (A) The taxable equivalent adjustment is based on the U.S. federal statutory tax rate of 35%. (B) Adjusted for the effect of credit card securitizations. Consolidated Average Balances 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. (In Billions of Dollars) 1996 1996 1996 1995 1995 Loans: Consumer $106 $104 $104 $103 $101 Commercial 61 60 59 58 56 Total Average Loans $167 $164 $163 $161 $157 Total Average Assets $268 $268 $268 $266 $266 (In Millions of Dollars) Common Stockholders' $17,950 $17,713 $17,362 $16,166 $15,716 Equity Preferred Equity 2,078 2,078 2,367 3,169 3,717 Total Average $20,028 $19,791 $19,729 $19,335 $19,433 Stockholders' Equity Calculation of Earnings Per Share Third Quarter 1996 Third Quarter 1995 On Common On Common and Common Assuming and Common Assuming Equivalent Full Equivalent Full (In Millions, except Per Shares Dilution Shares Dilution Share Amounts) Earnings Income Applicable to $897 $897 $798 $798 Common Stock Dividends on Conversion Preferred Stock, Series - - 11 11 15 (A) Dividends on Convertible Preferred Stock, Series 12 and - - - 31 Series 13 (B) Income Applicable to Common Stock, Adjusted $897 $897 $809 $840 Shares Weighted-Average Common Shares Outstanding (A)(B)(C) 471.0 471.0 422.0 422.0 Conversion Preferred - - 12.5 12.5 Stock, Series 15 (A) Convertible Preferred Stock, - - - 65.7 Series 12 and Series 13 (B) Other Common Equivalent 13.8 14.6 16.2 17.8 Shares (D) Total 484.8 485.6 450.7 518.0 Earnings Per Share Net Income $1.85 $1.85 $1.79 $1.62 (A) Conversion Preferred Stock, Series 15 was fully redeemed during 1995. (B) During the first quarter of 1996, the remaining Convertible Preferred Stock, Series 12 and 13 were converted to 59.0 million shares of common stock. The shares are included in the fully diluted computation on an if-converted basis up to conversion dates, and from conversion dates forward these shares are included in weighted-average common shares outstanding. (C) Includes 1.0 million and 1.1 million book value shares in 1996 and 1995, respectively. (D) Includes the dilutive effect of stock options and stock purchase agreements computed using the treasury stock method and shares issuable under deferred stock awards. Sept. 30, Sept. 30, (In Thousands) 1996 1995 Common Shares Outstanding 470,483 425,062 Nine Months 1996 Nine Months 1995 On Common On Common and Common Assuming and Common Assuming Equivalent Full Equivalent Full (In Millions, except Per Shares Dilution Shares Dilution Share Amounts) Earnings Income Applicable to $2,682 $2,682 $2,290 $2,290 Common Stock Dividends on Conversion Preferred Stock, Series - - 58 58 15 (A) Dividends on Convertible Preferred Stock, Series 12 and - 5 - 99 Series 13 (B) Income Applicable to Common Stock, Adjusted $2,682 $2,687 $2,348 $2,447 Shares Weighted-Average Common Shares Outstanding(A)(B)(C) 470.5 470.5 406.6 406.6 Conversion Preferred - - 24.1 24.1 Stock, Series 15 (A) Convertible Preferred Stock, - 6.9 - 70.6 Series 12 and Series 13 (B) Other Common Equivalent 14.6 15.4 13.2 16.8 Shares (D) Total 485.1 492.8 443.9 518.1 Earnings Per Share Net Income $5.53 $5.45 $5.29 $4.72 (A) Conversion Preferred Stock, Series 15 was fully redeemed during 1995. (B) During the first quarter of 1996, the remaining Convertible Preferred Stock, Series 12 and 13 were converted to 59.0 million shares of common stock. The shares are included in the fully diluted computation on an if-converted basis up to conversion dates, and from conversion dates forward these shares are included in weighted-average common shares outstanding. (C) Includes 1.0 million and 1.1 million book value shares in 1996 and 1995, respectively. (D) Includes the dilutive effect of stock options and stock purchase agreements computed using the treasury stock method and shares issuable under deferred stock awards. Other Revenue Third Quarter % Nine Months % (In Millions of 1996 1995(A) Change 1996 1995(A) Change Dollars) Securitized Credit Card Receivables $210 $274 (23) $658 $ 734 (10) Venture Capital 129 89 45 274 362 (24) Affiliate Earnings 43 50 (14) 188 157 20 Net Asset Gains and Other Items 106 25 NM 359 146 NM Total $488 $438 11 $1,479 $1,399 6 (A) Reclassified to conform to latest quarter's presentation. NM Not meaningful, as percentage equals or exceeds 100%. Trading-Related Third Quarter % Nine Months % Revenue (In Millions of 1996 1995(A) Change 1996 1995(A) Change Dollars) By Business Sector: Corporate Banking: Emerging Markets $217 $181 20 $ 582 $ 508 15 Global Relationship 259 320 (19) 603 816 (26) Banking Total Corporate 476 501 (5) 1,185 1,324 (10) Banking Consumer and Other 71 57 25 181 182 (1) Total $547 $558 (2) $1,366 $1,506 (9) By Trading Activity: Foreign Exchange (B) $251 $294 (15) $ 693 $ 862 (20) Derivative (C) 159 137 16 434 356 22 Fixed Income (D) 41 49 (16) 13 55 (76) Other 96 78 23 226 233 (3) Total $547 $558 (2) $1,366 $1,506 (9) By Income Statement Line: Foreign Exchange $221 $250 (12) $ 640 $ 878 (27) Trading Account 224 182 23 420 363 16 Other (E) 102 126 (19) 306 265 15 Total $547 $558 (2) $1,366 $1,506 (9) (A) Reclassified to conform to latest quarter's presentation. (B) Includes foreign exchange spot, forward, and option contracts. (C) Primarily interest rate and currency swaps, options, financial futures, and equity and commodity contracts. (D) Principally debt instruments including government and corporate debt as well as mortgage-backed securities. (E) Primarily net interest revenue. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits - Exhibit No. 12(a) Calculation of Ratio of Income to Fixed Charges - Exhibit No. 12(b) Calculation of Ratio of Income to Fixed Charges Including Preferred Stock Dividends SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CITICORP (Registrant) By: /s/ Thomas E. Jones ------------------------------- Thomas E. Jones Executive Vice President A Principal Financial Officer Dated: October 15, 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)
YEAR ENDED DECEMBER 31, NINE MONTHS ENDED SEPTEMBER 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 2,610 3,100 INTEREST FACTOR IN RENT EXPENSE 140 143 147 162 171 112 108 --------- ------------ ---------- ------------ ----------- --------- --------- TOTAL FIXED CHARGES 4,250 6,049 6,471 5,988 6,144 2,722 3,208 INCOME: NET INCOME(LOSS) 3,464 3,422 (A) 1,919 (B) 722 (914)(C) 2,801 2,559 INCOME TAXES 2,121 1,189 941 696 677 1,692 1,586 FIXED CHARGES 4,250 6,049 6,471 5,988 6,144 2,722 3,208 --------- ------------ ---------- ------------ ----------- --------- --------- TOTAL INCOME 9,835 10,660 9,331 7,406 5,907 7,215 7,353 ========= ============ ========== ============ =========== ========= ========= RATIO OF INCOME TO FIXED CHARGES EXCLUDING INTEREST ON DEPOSITS 2.31 1.76 1.44 1.24 0.96(D) 2.65 2.29 ========= ============ ========== ============ =========== ========= ========= INCLUDING INTEREST ON DEPOSITS: FIXED CHARGES: INTEREST EXPENSE 13,012 14,902 16,121 16,327 17,089 9,220 9,713 INTEREST FACTOR IN RENT EXPENSE 140 143 147 162 171 112 108 --------- ------------ ---------- ------------ ----------- --------- --------- TOTAL FIXED CHARGES 13,152 15,045 16,268 16,489 17,260 9,332 9,821 INCOME: NET INCOME(LOSS) 3,464 3,422 (A) 1,919 (B) 722 (914)(C) 2,801 2,559 INCOME TAXES 2,121 1,189 941 696 677 1,692 1,586 FIXED CHARGES 13,152 15,045 16,268 16,489 17,260 9,332 9,821 --------- ------------ ---------- ------------ ----------- --------- --------- TOTAL INCOME 18,737 19,656 19,128 17,907 17,023 13,825 13,966 ========= ============ ========== ============ =========== ========= ========= RATIO OF INCOME TO FIXED CHARGES INCLUDING INTEREST ON DEPOSITS 1.42 1.31 1.18 1.09 0.99(D) 1.48 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 (In Millions)
YEAR ENDED DECEMBER 31, NINE MONTHS ENDED SEPTEMBER 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 2,610 3,100 INTEREST FACTOR IN RENT EXPENSE 140 143 147 162 171 112 108 DIVIDENDS--PREFERRED STOCK 553 505 (A) 465 416 271 (A) 198 444 -------- ---------- ---------- ------------ ----------- -------- ------------ TOTAL FIXED CHARGES 4,803 6,554 6,936 6,404 6,415 2,920 3,652 INCOME: NET INCOME(LOSS) 3,464 3,422 (B) 1,919 (C) 722 (914)(D) 2,801 2,559 INCOME TAXES 2,121 1,189 941 696 677 1,692 1,586 FIXED CHARGES (EXCLUDING PREFERRED STOCK DIVIDENDS) 4,250 6,049 6,471 5,988 6,144 2,722 3,208 -------- ---------- ---------- ------------ ----------- -------- ------------ TOTAL INCOME 9,835 10,660 9,331 7,406 5,907 7,215 7,353 ======== ========== ========== ============ =========== ======== ============ RATIO OF INCOME TO FIXED CHARGES EXCLUDING INTEREST ON DEPOSITS 2.05 1.63 1.35 1.16 0.92(E) 2.47 2.01 ======== ========== ========== ============ =========== ======== ============ INCLUDING INTEREST ON DEPOSITS: FIXED CHARGES: INTEREST EXPENSE 13,012 14,902 16,121 16,327 17,089 9,220 9,713 INTEREST FACTOR IN RENT EXPENSE 140 143 147 162 171 112 108 DIVIDENDS--PREFERRED STOCK 553 505 (A) 465 416 271 (A) 198 444 -------- ---------- ---------- ------------ ----------- -------- ------------ TOTAL FIXED CHARGES 13,705 15,550 16,733 16,905 17,531 9,530 10,265 INCOME: NET INCOME(LOSS) 3,464 3,422 (B) 1,919 (C) 722 (914)(D) 2,801 2,559 INCOME TAXES 2,121 1,189 941 696 677 1,692 1,586 FIXED CHARGES (EXCLUDING PREFERRED STOCK DIVIDENDS) 13,152 15,045 16,268 16,489 17,260 9,332 9,821 -------- ---------- ---------- ------------ ----------- -------- ------------ TOTAL INCOME 18,737 19,656 19,128 17,907 17,023 13,825 13,966 ======== ========== ========== ============ =========== ======== ============ 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-----