Citigroup Inc.

ANALYSIS OF CHANGES IN INTEREST EXPENSE AND NET INTEREST REVENUE (1)(2)(3)In millions of dollars2010 vs. 2009 2009 vs. 2008Increase (decrease)due to change in:Increase (decrease)due to change in:Average Average Net Average Average Netvolume rate change volume rate changeDepositsIn U.S. offices $ 27 $(1,612) $(1,585) $ 176 $ (1,832) $ (1,656)In offices outside the U.S. (4) 540 (730) (190) (877) (7,592) (8,469)Total $ 567 $(2,342) $(1,775) $ (701) $ (9,424) $(10,125)Federal funds purchased and securities loanedor sold under agreements to repurchaseIn U.S. offices $ (70) $ (121) $ (191) $(1,136) $ (2,942) $ (4,078)In offices outside the U.S. (4) 486 (920) (434) (1,278) (2,476) (3,754)Total $ 416 $(1,041) $ (625) $(2,414) $ (5,418) $ (7,832)Trading account liabilities (5)In U.S. offices $ 110 $ (49) $ 61 $ (251) $ (634) $ (885)In offices outside the U.S. (4) 12 17 29 (18) (65) (83)Total $ 122 $ (32) $ 90 $ (269) $ (699) $ (968)Short-term borrowingsIn U.S. offices $ (32) $ (344) $ (376) $ (554) $ (1,637) $ (2,191)In offices outside the U.S. (4) 23 (155) (132) (213) (82) (295)Total $ (9) $ (499) $ (508) $ (767) $ (1,719) $ (2,486)Long-term debtIn U.S. offices $ 1,809 $(1,610) $ 199 $ 216 $ (3,127) $ (2,911)In offices outside the U.S. (4) (269) 52 (217) (330) (330) (660)Total $ 1,540 $(1,558) $ (18) $ (114) $ (3,457) $ (3,571)Total interest expense $ 2,636 $(5,472) $(2,836) $(4,265) $(20,717) $(24,982)Net interest revenue $ 3,364 $ 2,201 $ 5,565 $(6,330) $ 1,488 $ (4,842)(1) The taxable equivalent adjustment is based on the U.S. federal statutory tax rate of 35% and is included in this presentation.(2) Rate/volume variance is allocated based on the percentage relationship of changes in volume and changes in rate to the total net change.(3) Detailed average volume, interest revenue and interest expense exclude discontinued operations. See Note 3 to the Consolidated Financial Statements.(4) Changes in average rates reflect changes in prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.(5) Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest Revenue. Interest revenue and interest expense on cash collateral positions are reported in interest on Trading account assetsand Trading account liabilities, respectively.125