7.3 billion - Citigroup

BROKERAGE AND ASSET MANAGEMENTBrokerage and Asset Management (BAM) primarily consists of Citi‘s investment in, and assets related to, the Morgan Stanley SmithBarney Joint Venture (MSSB JV). At March 31, 2012, BAM had approximately $26 billion of assets, or approximately 12% of CitiHoldings‘ assets, of which approximately $25 billion related to the MSSB JV. The remaining assets in BAM consist of other retailalternative investments.For information on the terms and conditions of the MSSB JV, see the Forms 8-K filed with the Securities and ExchangeCommission on January 16, 2009 and June 3, 2009. See also Note 11 to the Consolidated Financial Statements.First QuarterIn millions of dollars, except as otherwise noted 2012 2011 % ChangeNet interest revenue $(129) $(46) NMNon-interest revenue 83 183 (55)%Total revenues, net of interest expense $(46) $137 NMTotal operating expenses $157 $174 (10)%Net credit losses $— $ 1 (100)%Credit reserve build (release) (1) (1) —Provision for unfunded lending commitments — — —Provision (release) for benefits and claims — 8 (100)%Provisions for credit losses and for benefits and claims $(1) $ 8 NMIncome (loss) from continuing operations before taxes $(202) $(45) NMIncome taxes (benefits) (66) (35) (89)%Loss from continuing operations $(136) $(10) NMNet income attributable to noncontrolling interests 1 2 (50)%Net (loss) $(137) $(12) NMEOP assets (in billions of dollars) $26 $ 27 (4)%EOP deposits (in billions of dollars) 55 58 (5)NM Not meaningful1Q12 vs. 1Q11The net loss increased by $125 million from the prior-yearperiod to $137 million in the current quarter, as lower revenueswere only partly offset by lower expenses.Revenues decreased by $183 million year-over-year drivenby higher funding costs for MSSB JV assets and lower revenuesfrom the MSSB JV.Expenses decreased 10% year-over-year driven bydivestitures.Provisions decreased by $9 million due to the absence ofcertain benefits and claims in the prior-year period.23CITIGROUP – 2012 FIRST QUARTER 10-Q