8-K 1 sept.txt SEPT8K 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: October 15, 2002 --------------------------------- (Date of earliest event reported) Citicorp -------------------------------------------------- (Exact name of registrant as specified in charter) Delaware 1-5738 06-1515595 -------------------------------------------------------------------------------- (State or other juris- (Commission (IRS Employer diction of incorporation) File Number) Identification Number) 399 Park Avenue, New York, New York 10043 ---------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (212) 559-1000 ------------------------------------------------------------------ Not Applicable ------------------------------------------------------------- (Former name or former address, if changed since last report) Item 5. Other Events. ------------- Results of Operations (Unaudited) This report summarizes the results of operations of Citicorp and its subsidiaries for the three- and nine-month periods ended September 30, 2002 and September 30, 2001. Citigroup Inc., the ultimate parent company of Citicorp, filed a Current Report on Form 8-K dated October 15, 2002. That report contains certain additional information about Citicorp's businesses. CONSOLIDATED STATEMENTS OF INCOME CITICORP AND SUBSIDIARIES (Unaudited) (In Millions of Dollars) Third Quarter Nine Months ------------------- ------------------- 2002 2001 2002 2001 ------------------- ------------------- INTEREST REVENUE Loans, including Fees $ 9,647 $10,263 $28,258 $29,942 Deposits with Banks 230 303 752 946 Federal Funds Sold and Securities Purchased Under Resale Agreements 101 196 306 427 Investments, including Dividends 1,301 1,140 3,607 2,977 Trading Account Assets 351 383 1,276 835 Loans Held For Sale 269 363 846 1,194 ------------------- ------------------- 11,899 12,648 35,045 36,321 ------------------- ------------------- INTEREST EXPENSE Deposits 2,586 3,290 6,891 9,859 Trading Account Liabilities 15 13 43 37 Purchased Funds and Other Borrowings 611 941 1,949 2,593 Long-Term Debt 907 1,329 2,884 4,016 ------------------- ------------------- 4,119 5,573 11,767 16,505 ------------------- ------------------- NET INTEREST REVENUE 7,780 7,075 23,278 19,816 ------------------- ------------------- POLICYHOLDER BENEFITS AND CLAIMS 122 302 416 809 PROVISION FOR CREDIT LOSSES 2,689 1,580 7,305 4,529 ------------------- ------------------- TOTAL BENEFITS, CLAIMS, AND CREDIT LOSSES 2,811 1,882 7,721 5,338 ------------------- ------------------- NET INTEREST REVENUE AFTER BENEFITS, CLAIMS, AND CREDIT LOSSES 4,969 5,193 15,557 14,478 ------------------- ------------------- FEES, COMMISSIONS, AND OTHER REVENUE Fees and Commissions 2,575 3,038 8,264 8,401 Foreign Exchange 313 833 1,606 1,854 Trading Account 779 161 1,689 1,089 Investment Transactions (146) 26 (215) 141 Other Revenue 1,669 717 3,552 2,811 ------------------- ------------------- 5,190 4,775 14,896 14,296 ------------------- ------------------- OPERATING EXPENSE Salaries 2,105 2,456 6,743 6,872 Employee Benefits 482 437 1,427 1,312 ------------------- ------------------- Total Employee 2,587 2,893 8,170 8,184 Net Premises and Equipment 809 786 2,382 2,237 Restructuring-Related Items {a} (32) 133 (26) 363 Other Expense 2,308 2,478 7,027 7,167 ------------------- ------------------- 5,672 6,290 17,553 17,951 ------------------- ------------------- INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND CUMULATIVE EFFECT OF ACCOUNTING CHANGES 4,487 3,678 12,900 10,823 INCOME TAXES 1,482 1,279 4,345 3,905 MINORITY INTEREST, NET OF INCOME TAXES 32 25 78 47 ------------------- ------------------- INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGES 2,973 2,374 8,477 6,871 CUMULATIVE EFFECT OF ACCOUNTING CHANGES {b} - - - (144) ------------------- ------------------- NET INCOME $ 2,973 $2,374 $ 8,477 $ 6,727 =================== =================== {a} The 2002 third quarter includes reversals of $(32) million. The 2002 nine months include new charges of $41 million, reversals of $(75) million and accelerated depreciation of $8 million. The 2001 third quarter includes new charges of $129 million and accelerated depreciation of $4 million. The 2001 nine months include new charges of $315 million and accelerated depreciation of $48 million. Restructuring-related items in the 2001 third quarter primarily related to the acquisition of Banamex and the integration of its operations. {b} Accounting Changes refer to the 2001 first quarter adoption of Statement of Financial Accounting Standards (SFAS) No. 133, "Accounting for Derivative Instruments and Hedging Activities", as amended (SFAS 133), and the 2001 second quarter adoption of EITF issue 99-20 "Recognition of Interest Income and Impairment on Purchased and Retained Beneficial Interests in Securitized Financial Assets" (EITF 99-20). SIGNATURE 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/ William P. Hannon --------------------- William P. Hannon Controller Dated: October 17, 2002