Citigroup Inc.

Capital Resources of Citigroup’s Depository InstitutionsCitigroup’s U.S. subsidiary depository institutions are also subject to riskbasedcapital guidelines issued by their respective primary federal bankregulatory agencies, which are similar to the guidelines of the FederalReserve Board. To be “well capitalized” under current regulatory definitions,Citigroup’s depository institutions must have a Tier 1 Capital ratio of at least6%, a Total Capital (Tier 1 Capital + Tier 2 Capital) ratio of at least 10%, anda Leverage ratio of at least 5%, and not be subject to a regulatory directive tomeet and maintain higher capital levels.At December 31, 2010 and December 31, 2009, all of Citigroup’s U.S.subsidiary depository institutions including Citigroup’s primary subsidiarydepository institution, Citibank, N.A., were “well capitalized” under currentfederal bank regulatory agency definitions, as noted in the following table:Citibank, N.A. Components of Capital and Ratios UnderRegulatory GuidelinesIn billions of dollars at year end, except ratios 2010 2009Tier 1 Common $ 103.9 $ 95.8Tier 1 Capital 104.6 96.8Total Capital (Tier 1 Capital + Tier 2 Capital) 117.7 110.6Tier 1 Common ratio 15.07% 13.02%Tier 1 Capital ratio 15.17 13.16Total Capital ratio 17.06 15.03Leverage ratio 8.88 8.31There are various legal and regulatory limitations on the ability ofCitigroup’s subsidiary depository institutions to pay dividends to Citigroupand its non-bank subsidiaries. In determining the declaration of dividends,each depository institution must also consider its effect on applicable riskbasedcapital and Leverage ratio requirements, as well as policy statementsof the federal regulatory agencies that indicate that banking organizationsshould generally pay dividends out of current operating earnings. Citigroupdid not receive any dividends from its bank subsidiaries during 2010. See also“Funding and Liquidity—Liquidity Transfer Between Entities” below.61