Citigroup Inc.

CONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATED STATEMENT OF INCOMECitigroup Inc. and SubsidiariesYear ended December 31,In millions of dollars, except per-share amounts 2010 2009 2008RevenuesInterest revenue $ 79,516 $ 76,635 $106,499Interest expense 24,864 27,721 52,750Net interest revenue $ 54,652 $ 48,914 $ 53,749Commissions and fees $ 13,658 $ 15,485 $ 12,855Principal transactions 7,517 6,068 (23,889)Administration and other fiduciary fees 4,005 5,195 8,222Realized gains (losses) on sales of investments 2,411 1,996 679Other than temporary impairment losses on investments (1)Gross impairment losses (1,495) (7,262) (2,740)Less: Impairments recognized in OCI 84 4,356 —Net impairment losses recognized in earnings (1) (1,411) $ (2,906) $ (2,740)Insurance premiums $ 2,684 $ 3,020 $ 3,221Other revenue 3,085 2,513 (498)Total non-interest revenues $ 31,949 $ 31,371 $ (2,150)Total revenues, net of interest expense $ 86,601 $ 80,285 $ 51,599Provisions for credit losses and for benefits and claimsProvision for loan losses $ 25,194 $ 38,760 $ 33,674Policyholder benefits and claims 965 1,258 1,403Provision for unfunded lending commitments (117) 244 (363)Total provisions for credit losses and for benefits and claims $ 26,042 $ 40,262 $ 34,714Operating expensesCompensation and benefits $ 24,430 $ 24,987 $ 31,096Premises and equipment 3,331 3,697 4,217Technology/communication 4,924 5,215 7,093Advertising and marketing 1,645 1,415 2,188Restructuring — (113) 1,550Other operating 13,045 12,621 23,096Total operating expenses $ 47,375 $ 47,822 $ 69,240Income (loss) from continuing operations before income taxes $ 13,184 $ (7,799) $ (52,355)Provision (benefit) for income taxes 2,233 (6,733) (20,326)Income (loss) from continuing operations $ 10,951 $ (1,066) $ (32,029)Discontinued operationsIncome (loss) from discontinued operations $ 72 $ (653) $ 784Gain (loss) on sale (702) 102 3,139Provision (benefit) for income taxes (562) (106) (79)Income (loss) from discontinued operations, net of taxes $ (68) $ (445) $ 4,002Net income (loss) before attribution of noncontrolling interests $ 10,883 $ (1,511) $ (28,027)Net income (loss) attributable to noncontrolling interests 281 95 (343)Citigroup’s net income (loss) $ 10,602 $ (1,606) $ (27,684)Basic earnings per share (2)Income (loss) from continuing operations $ 0.37 $ (0.76) $ (6.39)Income (loss) from discontinued operations, net of taxes (0.01) (0.04) 0.76Net income (loss) $ 0.36 $ (0.80) $ (5.63)Weighted average common shares outstanding 28,776.0 11,568.3 5,265.4Diluted earnings per share (2)Income (loss) from continuing operations $ 0.35 $ (0.76) $ (6.39)Income (loss) from discontinued operations, net of taxes — (0.04) 0.76Net income (loss) $ 0.35 $ (0.80) $ (5.63)Adjusted weighted average common shares outstanding 29,678.1 12,099.3 5,768.9(1) As of January 1, 2009, the Company adopted ASC 320-10-65, Investments—Debt and Equity Securities. The Company disclosed comparable information with the prior year in its 2009 periodic reports.(2) The Diluted EPS calculation for 2009 and 2008 utilizes Basic shares and Income available to common shareholders (Basic) due to the negative Income available to common shareholders. Using actual Diluted sharesand Income available to common shareholders (Diluted) would result in anti-dilution.See Notes to the Consolidated Financial Statements.151