Citigroup Inc.

Non-Accrual Loans and AssetsThe table below summarizes Citigroup’s view of non-accrual loans as ofthe periods indicated. Non-accrual loans are loans in which the borrowerhas fallen behind in interest payments or, for Corporate and Consumer(commercial market) loans, where Citi has determined that the payment ofinterest or principal is doubtful, and which are thus considered impaired. Insituations where Citi reasonably expects that only a portion of the principaland interest owed will ultimately be collected, all payments received arereflected as a reduction of principal and not as interest income. There is noindustry-wide definition of non-accrual assets, however, and as such, analysisacross the industry is not always comparable.Corporate and Consumer (commercial markets) non-accrual loansmay still be current on interest payments but are considered non-accrual ifCiti has determined that the payment of interest or principal is doubtful. Asreferenced above, consistent with industry standards, Citi generally accruesinterest on credit card loans until such loans are charged-off, which typicallyoccurs at 180 days contractual delinquency. As such, credit card loans are notincluded in the table below.Non-Accrual LoansIn millions of dollars 2010 2009 2008 2007 2006Citicorp $ 4,909 $ 5,353 $ 3,193 $2,027 $1,141Citi Holdings 14,498 26,387 19,104 6,941 3,906Total non-accrual loans (NAL) $19,407 $31,740 $22,297 $8,968 $5,047Corporate non-accrual loans (1)North America $ 2,112 $ 5,621 $ 2,660 $ 291 $ 68EMEA 5,327 6,308 6,330 1,152 128Latin America 701 569 229 119 152Asia 470 981 513 103 88$ 8,610 $13,479 $ 9,732 $1,665 $ 436Citicorp $ 3,081 $ 3,238 $ 1,364 $ 247 $ 133Citi Holdings 5,529 10,241 8,368 1,418 303$ 8,610 $13,479 $ 9,732 $1,665 $ 436Consumer non-accrual loans (1)North America $ 8,540 $15,111 $ 9,617 $4,841 $3,139EMEA 662 1,159 948 696 441Latin America 1,019 1,340 1,290 1,133 643Asia 576 651 710 633 388$10,797 $18,261 $12,565 $7,303 $4,611Citicorp $ 1,828 $ 2,115 $ 1,829 $1,780 $1,008Citi Holdings 8,969 16,146 10,736 5,523 3,603$10,797 $18,261 $12,565 $7,303 $4,611(1) Excludes purchased distressed loans as they are generally accreting interest. The carrying value of these loans was $469 million at December 31, 2010, $920 million at December 31, 2009, $1.510 billion atDecember 31, 2008, $2.373 billion at December 31, 2007, and $949 million at December 31, 2006.Statement continues on the next page89