Citigroup Inc.

TRANSACTION SERVICESTransaction Services is composed of Treasury and Trade Solutions (TTS) and Securities and Fund Services (SFS). TTS provides comprehensive cashmanagement and trade finance and services for corporations, financial institutions and public sector entities worldwide. SFS provides securities services toinvestors, such as global asset managers, custody and clearing services to intermediaries such as broker-dealers, and depository and agency/trust services tomultinational corporations and governments globally. Revenue is generated from net interest revenue on deposits in TTS and SFS, as well as from trade loansand fees for transaction processing and fees on assets under custody and administration in SFS.In millions of dollars 2010 2009 2008% Change2010 vs. 2009% Change2009 vs. 2008Net interest revenue $ 5,649 $5,651 $5,485 — 3%Non-interest revenue 4,385 4,138 4,461 6% (7)Total revenues, net of interest expense $10,034 $9,789 $9,946 3% (2)%Total operating expenses 4,868 4,515 5,156 8 (12)Provisions (releases) for credit losses and for benefits and claims (59) 7 35 NM (80)Income before taxes and noncontrolling interests $ 5,225 $5,267 $4,755 (1)% 11%Income taxes 1,551 1,531 1,402 1 9Income from continuing operations 3,674 3,736 3,353 (2) 11Net income attributable to noncontrolling interests 21 13 31 62 (58)Net income $ 3,653 $3,723 $3,322 (2)% 12%Average assets (in billions of dollars) $ 71 $ 60 $ 71 18% (15)%Return on assets 5.15% 6.21% 4.69%Revenues by regionNorth America $ 2,483 $2,526 $2,161 (2)% 17%EMEA 3,356 3,389 3,677 (1) (8)Latin America 1,490 1,373 1,439 9 (5)Asia 2,705 2,501 2,669 8 (6)Total revenues $10,034 $9,789 $9,946 3% (2)%Income from continuing operations by regionNorth America $ 544 $ 615 $ 323 (12)% 90%EMEA 1,224 1,287 1,246 (5) 3Latin America 653 604 588 8 3Asia 1,253 1,230 1,196 2 3Total net income from continuing operations $ 3,674 $3,736 $3,353 (2)% 11%Key indicators (in billions of dollars)Average deposits and other customer liability balances $ 333 $ 304 $ 281 10% 8%EOP assets under custody (in trillions of dollars) 12.6 12.1 11.0 4 10NM Not meaningful2010 vs. 2009Revenues, net of interest expense, grew 3% compared to 2009, reflecting astrong year despite a low interest rate environment, driven by growth in boththe TTS and SFS businesses. TTS revenues grew 2% as a result of increasedcustomer liability balances and solid growth in trade and fees, partially offsetby spread compression. SFS revenues improved by 3% on higher volumes andbalances reflecting the impact of sales and increased market activity.Average deposits and other customer liability balances grew 10%,driven by strong growth in the emerging markets.Operating expenses grew 8% due to investment spending and higherbusiness volumes.Provisions for credit losses and for benefits and claims declined ascompared to 2009, attributable to overall improvement in portfolio quality.2009 vs. 2008Revenues, net of interest expense declined 2% compared to 2008 as stronggrowth in balances was more than offset by lower spreads driven by lowinterest rates and reduced securities asset valuations globally. TTS revenuesgrew 7% as a result of strong growth in balances and higher trade revenues.SFS revenues declined 18%, attributable to reductions in asset valuations andvolumes.Average deposits and other customer liability balances grew 8%, drivenby strong growth in all regions.Operating expenses declined 12%, mainly as a result of benefits fromexpense management and re-engineering initiatives.Provisions for credit losses and for benefits and claims declined 80%,primarily attributable to overall portfolio management.45