Citigroup Inc.

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Impact of Changes on Capital RatiosThe following table presents the estimated sensitivity of Citigroup’s andCitibank, N.A.’s capital ratios to changes of $100 million in Tier 1 Common,Tier 1 Capital, or Total Capital (numerator), or changes of $1 billion inrisk-weighted assets or adjusted average total assets (denominator), based onfinancial information as of December 31, 2010. This information is providedfor the purpose of analyzing the impact that a change in Citigroup’s orCitibank, N.A.’s financial position or results of operations could have on theseratios. These sensitivities only consider a single change to either a componentof capital, risk-weighted assets, or adjusted average total assets. Accordingly,an event that affects more than one factor may have a larger basis pointimpact than is reflected in this table.Impact of $100million change inTier 1 CommonTier 1 Common ratio Tier 1 Capital ratio Total Capital ratio Leverage ratioImpact of $1billion change inrisk-weightedassetsImpact of $100million changein Tier 1 CapitalImpact of $1billion change inrisk-weightedassetsImpact of $100million changein Total CapitalImpact of $1billion change inrisk-weightedassetsImpact of $100million changein Tier 1 CapitalImpact of $1billion changein adjustedaverage totalassetsCitigroup 1.0 bps 1.1 bps 1.0 bps 1.3 bps 1.0 bps 1.7 bps 0.5 bps 0.3 bpsCitibank, N.A. 1.4 bps 2.2 bps 1.4 bps 2.2 bps 1.4 bps 2.5 bps 0.8 bps 0.7 bpsBroker-Dealer SubsidiariesAt December 31, 2010, Citigroup Global Markets Inc., a broker-dealerregistered with the SEC that is an indirect wholly owned subsidiary ofCitigroup Global Markets Holdings Inc., had net capital, computed inaccordance with the SEC’s net capital rule, of $8.9 billion, which exceededthe minimum requirement by $8.2 billion.In addition, certain of Citi’s broker-dealer subsidiaries are subject toregulation in the other countries in which they do business, includingrequirements to maintain specified levels of net capital or its equivalent.Citigroup’s broker-dealer subsidiaries were in compliance with their capitalrequirements at December 31, 2010.62
Regulatory Capital Standards DevelopmentsThe prospective regulatory capital standards for financial institutions arecurrently subject to significant debate, rulemaking activity and uncertainty,both in the U.S. and internationally. See “Risk Factors” below.Basel II and III. In late 2005, the Basel Committee on BankingSupervision (Basel Committee) published a new set of risk-basedcapital standards (Basel II) that would permit banking organizations,including Citigroup, to leverage internal risk models used to measurecredit, operational, and market risk exposures to drive regulatory capitalcalculations. In late 2007, the U.S. banking agencies adopted these standardsfor large banking organizations, including Citigroup. As adopted, thestandards require Citigroup, as a large and internationally active bankingorganization, to comply with the most advanced Basel II approaches forcalculating credit and operational risk capital requirements. The U.S.implementation timetable consists of a parallel calculation period under thecurrent regulatory capital regime (Basel I) and Basel II, followed by a threeyeartransitional period.Citi began parallel reporting on April 1, 2010. There will be at least fourquarters of parallel reporting before Citi enters the three-year transitionalperiod. The U.S. banking agencies have reserved the right to change howBasel II is applied in the U.S. following a review at the end of the second yearof the transitional period, and to retain the existing prompt corrective actionand leverage capital requirements applicable to banking organizations inthe U.S.Apart from the Basel II rules regarding credit and operational risks, inJune 2010, the Basel Committee agreed on certain revisions to the market riskcapital framework that would also result in additional capital requirements.In December 2010, the U.S. banking agencies issued a proposal that wouldamend their market risk capital rules to implement certain revisionsapproved by the Basel Committee to the market risk capital framework.Further, as an outgrowth of the financial crisis, in December 2010,the Basel Committee issued final rules to strengthen existing capitalrequirements (Basel III). The U.S. banking agencies will be requiredto finalize, within two years, the rules to be applied by U.S. bankingorganizations commencing on January 1, 2013.Under Basel III, when fully phased in on January 1, 2019, Citigroup wouldbe required to maintain risk-based capital ratios as follows:Tier 1 Common Tier 1 Capital Total CapitalStated minimum ratio 4.5% 6.0% 8.0%Plus: Capital conservationbuffer requirement 2.5 2.5 2.5Effective minimum ratio 7.0% 8.5% 10.5%While banking organizations may draw on the 2.5% capital conservationbuffer to absorb losses during periods of financial or economic stress,restrictions on earnings distributions (e.g., dividends, equity repurchases, anddiscretionary compensation) would result, with the degree of such restrictionsgreater based upon the extent to which the buffer is utilized. Moreover,subject to national discretion by the respective bank supervisory or regulatoryauthorities, a countercyclical capital buffer ranging from 0% to 2.5%,consisting of common equity or other fully loss absorbing capital, wouldalso be imposed on banking organizations when it is deemed that excessaggregate credit growth is resulting in a build-up of systemic risk in a givencountry. This countercyclical capital buffer, when in effect, would serve as anadditional buffer supplementing the capital conservation buffer.As a systemically important financial institution, Citigroup may alsobe subject to additional capital requirements. The Basel Committee andthe Financial Stability Board are currently developing an integratedapproach to systemically important financial institutions that could includecombinations of capital surcharges, contingent capital and bail-in debt.Under Basel III, Tier 1 Common capital will be required to be measuredafter applying generally all regulatory adjustments (including applicabledeductions). The impact of these regulatory adjustments on Tier 1 Commoncapital would be phased in incrementally at 20% annually beginning onJanuary 1, 2014, with full implementation by January 1, 2018. During thetransition period, the portion of the regulatory adjustments (includingapplicable deductions) not applied against Tier 1 Common capital wouldcontinue to be subject to existing national treatments.Moreover, under Basel III certain capital instruments will no longer qualifyas non-common components of Tier 1 Capital (e.g., trust preferred securitiesand cumulative perpetual preferred stock) or Tier 2 Capital. These instrumentswill be subject to a 10% per-year phase-out over 10 years beginning on January1, 2013, except for certain limited grandfathering. This phase-out periodwill be substantially shorter in the U.S. as a result of the so-called “CollinsAmendment” to the Dodd-Frank Wall Street Reform and Consumer ProtectionAct of 2010, which will generally require a phase out of these securities overa three-year period also beginning on January 1, 2013. In addition, the BaselCommittee has subsequently issued supplementary minimum requirements tothose contained in Basel III, which must be met or exceeded in order to ensurethat qualifying non-common Tier 1 or Tier 2 Capital instruments fully absorblosses at the point of a banking organization’s non-viability before taxpayers areexposed to loss. These requirements must be reflected within the terms of thecapital instruments unless, subject to certain conditions, they are implementedthrough the governing jurisdiction’s legal framework.Although U.S. banking organizations, such as Citigroup, are currentlysubject to a supplementary, non-risk-based measure of leverage for capitaladequacy purposes (see “Capital Ratios” above), Basel III establishes a moreconstrained Leverage ratio requirement. Initially, during a four-year parallelrun beginning on January 1, 2013, banking organizations will be requiredto maintain a minimum 3% Tier 1 Capital Leverage ratio. Disclosure of suchratio, and its components, will start on January 1, 2015. Depending upon theresults of the parallel run test period, there could be subsequent adjustmentsto the definition and calibration of the Leverage ratio, which is to be finalizedin 2017 and become a formal requirement by January 1, 2018.63
Page 1 and 2: UNITED STATESSECURITIES AND EXCHANG
Page 3 and 4: CITIGROUP’S 2010 ANNUAL REPORT ON
Page 5 and 6: As described above, Citigroup is ma
Page 7 and 8: Operating ExpensesCitigroup operati
Page 9 and 10: FIVE-YEAR SUMMARY OF SELECTED FINAN
Page 11 and 12: CITIGROUP REVENUESIn millions of do
Page 13 and 14: REGIONAL CONSUMER BANKINGRegional C
Page 15 and 16: 2009 vs. 2008Revenues, net of inter
Page 23 and 24: SECURITIES AND BANKINGSecurities an
Page 25 and 26: TRANSACTION SERVICESTransaction Ser
Page 27 and 28: BROKERAGE AND ASSET MANAGEMENTBroke
Page 29 and 30: Japan Consumer FinanceCitigroup con
Page 31 and 32: The following table provides detail
Page 33 and 34: CORPORATE/OTHERCorporate/Other incl
Page 35 and 36: During 2010, average Consumer loans
Page 37 and 38: SEGMENT BALANCE SHEET AT DECEMBER 3
Page 39 and 40: Citigroup Regulatory Capital Ratios
Page 41: Capital Resources of Citigroup’s
Page 45 and 46: DepositsCiti continues to focus on
Page 47 and 48: Secured financing is primarily cond
Page 49 and 50: Each of the credit rating agencies
Page 51 and 52: RISK FACTORSThe ongoing implementat
Page 53 and 54: The emerging markets in which Citi
Page 55 and 56: is largely uncertain. However, any
Page 57 and 58: a short-term Liquidity Coverage Rat
Page 59 and 60: understanding or cause confusion ac
Page 61 and 62: MANAGING GLOBAL RISKRISK MANAGEMENT
Page 63 and 64: CREDIT RISKCredit risk is the poten
Page 65 and 66: [This page intentionally left blank
Page 67 and 68: (1) 2010 primarily includes an addi
Page 69 and 70: Non-Accrual Loans and AssetsThe tab
Page 71 and 72: Renegotiated LoansThe following tab
Page 73 and 74: Citi’s first mortgage portfolio i
Page 75 and 76: Consumer Mortgage FICO and LTVData
Page 77 and 78: Second Mortgages: December 31, 2010
Page 79 and 80: Interest Rate Risk Associated with
Page 81 and 82: North America Cards—FICO Informat
Page 83 and 84: CONSUMER LOAN DETAILSConsumer Loan
Page 85 and 86: Consumer Loan Modification Programs
Page 87 and 88: North America CardsNorth America ca
Page 89 and 90: Payment deferrals that do not conti
Page 91 and 92: Repurchase ReserveCiti has recorded
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Securities and Banking-Sponsored Pr
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The following table presents the co
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MARKET RISKMarket risk encompasses
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Trading PortfoliosPrice risk in tra
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INTEREST REVENUE/EXPENSE AND YIELDS
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AVERAGE BALANCES AND INTEREST RATES
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ANALYSIS OF CHANGES IN INTEREST EXP
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[This page intentionally left blank
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As required by SEC rules, the table
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The credit valuation adjustment amo
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The fair values shown are prior to
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Key Controls over Fair Value Measur
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The following table reflects the in
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The results of the July 1, 2010 tes
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As a result of the losses incurred
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MANAGEMENT’S ANNUAL REPORT ON INT
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• an “ownership change” under
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REPORT OF INDEPENDENT REGISTERED PU
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FINANCIAL STATEMENTS AND NOTES TABL
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CONSOLIDATED FINANCIAL STATEMENTSCO
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CONSOLIDATED BALANCE SHEET(Continue
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CONSOLIDATED STATEMENT OF CHANGES I
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CITIBANK CONSOLIDATED BALANCE SHEET
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NOTES TO CONSOLIDATED FINANCIAL STA
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Repurchase and Resale AgreementsSec
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ecoveries are added. Securities rec
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Consumer Mortgage Representations a
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Transfers of Financial AssetsFor a
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ACCOUNTING CHANGESChange in Account
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The following table reflects the in
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Measuring Liabilities at Fair Value
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Revisions to the Earnings-per-Share
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FUTURE APPLICATION OF ACCOUNTING ST
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3. DISCONTINUED OPERATIONSSale of T
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CitiCapitalOn July 31, 2008, Citigr
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5. INTEREST REVENUE AND EXPENSEFor
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Stock Award ProgramsCitigroup issue
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In January 2009, members of the Man
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Information with respect to stock o
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9. RETIREMENT BENEFITSThe Company h
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The following table shows the chang
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A one-percentage-point change in th
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Level 3 Roll ForwardThe reconciliat
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10. INCOME TAXESIn millions of doll
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The Company is currently under audi
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11. EARNINGS PER SHAREThe following
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13. BROKERAGE RECEIVABLES AND BROKE
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The table below shows the fair valu
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Debt Securities Held-to-MaturityThe
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Evaluating Investments for Other-Th
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The following is a 12-month roll-fo
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16. LOANSCitigroup loans are report
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Residential Mortgage Loan to Values
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The following table presents Corpor
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Included in the Corporate and Consu
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18. GOODWILL AND INTANGIBLE ASSETSG
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Intangible AssetsThe components of
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CGMHI has committed long-term finan
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20. Regulatory CapitalCitigroup is
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22. SECURITIZATIONS AND VARIABLE IN
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In millions of dollars As of Decemb
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Funding Commitments for Significant
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Credit Card SecuritizationsThe Comp
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Managed Loans—Citi HoldingsThe fo
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Key assumptions used in measuring t
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Mortgage Servicing RightsIn connect
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The Company administers one conduit
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Key Assumptions and Retained Intere
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Municipal InvestmentsMunicipal inve
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Derivative NotionalsIn millions of
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activities together with gains and
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Cash Flow HedgesHedging of benchmar
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The range of credit derivatives sol
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24. CONCENTRATIONS OF CREDIT RISKCo
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Trading account assets and liabilit
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The internal valuation techniques u
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In millions of dollars at December
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Changes in Level 3 Fair Value Categ
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In millions of dollarsDecember 31,2
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26. FAIR VALUE ELECTIONSThe Company
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The following table provides inform
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Certain structured liabilitiesThe C
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28. PLEDGED SECURITIES, COLLATERAL,
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The repurchase reserve estimation p
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CollateralCash collateral available
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29. CONTINGENCIESOverviewIn additio
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pursuant to which Citigroup agreed
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court filings under docket number 0
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30. CITIBANK, N.A. STOCKHOLDER’S
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Condensed Consolidating Statements
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Condensed Consolidating Balance She
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33. SELECTED QUARTERLY FINANCIAL DA
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SUPERVISION AND REGULATIONCitigroup
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Citigroup continues to evaluate its
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CORPORATE INFORMATIONCITIGROUP EXEC
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SignaturesPursuant to the requireme
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Citigroup Inc.

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