Citigroup Inc.

2009 vs. 2008Revenues, net of interest expense declined 17%, driven by the impact of FXtranslation as well as lower activity in the branded cards business.Net interest revenue decreased 18%, mainly driven by FX translationas well as lower volumes and spread compression in the branded cardsbusiness that offset the growth in loans, deposits and investment productsin the retail business.Non-interest revenue decreased 13%, driven also by FX translation andlower branded cards fee income from lower customer activity.Operating expenses decreased 51%, primarily driven by the absence of thegoodwill impairment charge of $4.3 billion in 2008, the benefit associatedwith FX translation and savings from restructuring actions implementedprimarily at the end of 2008. A $125 million restructuring charge in 2008was offset by an expense benefit of $257 million related to a legal vehiclerestructuring. Expenses increased slightly in the fourth quarter 2009,primarily due to selected marketing and investment spending.Provisions for loan losses and for benefits and claims decreased 14%primarily reflecting lower loan loss reserve builds as a result of lower volumes,improved portfolio quality and lower net credit losses in the branded cardsportfolio, primarily in Mexico due to repositioning in the portfolio.39