Citigroup Inc.

2009 vs. 2008Revenues, net of interest expense declined 9%, driven by the absence of thegain on Visa shares in 2008, lower investment product revenues and cardspurchase sales, lower spreads, and the impact of FX translation.Net interest revenue was 5% lower than in 2008. Average loans anddeposits were down 10% and 4%, respectively, in each case partly due to theimpact of FX translation.Non-interest revenue declined 19%, primarily due to the decline ininvestment revenues, lower cards purchase sales, the absence of the gain onVisa shares and the impact of FX translation.Operating expenses declined 9%, reflecting the benefits of re-engineeringefforts and the impact of FX translation. Expenses increased slightly in thefourth quarter 2009, primarily due to targeted marketing and investmentspending.Provisions for loan losses and for benefits and claims increased 29%,mainly due to the impact of a higher credit reserve build and an increase innet credit losses, partially offset by the impact of FX translation. In the firsthalf of 2009, rising credit losses were particularly apparent in the portfoliosin India and South Korea. However, delinquencies improved in the latter partof the year and net credit losses flattened as the region showed early signs ofeconomic recovery and increased levels of customer activity.41