7.3 billion - Citigroup

ANALYSIS OF CHANGES IN INTEREST EXPENSE AND NET INTEREST REVENUE (1)(2)(3)1st Qtr. 2012 vs. 4th Qtr. 2011 1st Qtr. 2012 vs. 1st Qtr. 2011Increase (decrease)due to change in:Increase (decrease)due to change in:In millions of dollarsAveragevolumeAveragerateNetchangeAveragevolumeAveragerateNetchangeDepositsIn U.S. offices $ 12 $ 23 $ 35 $ 1 $ 49 $ 50In offices outside the U.S. (4) 13 (110) (97) (64) 22 (42)Total $ 25 $ (87) $ (62) $ (63) $ 71 $ 8Federal funds purchased and securities loanedor sold under agreements to repurchaseIn U.S. offices $ (13) $ 14 $ 1 $ — $ 11 $ 11In offices outside the U.S. (4) 22 (59) (37) 22 (75) (53)Total $ 9 $ (45) $ (36) $ 22 $ (64) $ (42)Trading account liabilities (5)In U.S. offices $ (3) $ (12) $ (15) $ (4) $ (15) $ (19)In offices outside the U.S. (4) 1 2 3 (1) (11) (12)Total $ (2) $ (10) $ (12) $ (5) $ (26) $ (31)Short-term borrowingsIn U.S. offices $ — $ 9 $ 9 $ (6) $ (25) $ (31)In offices outside the U.S. (4) (5) 47 42 (27) 96 69Total $ (5) $ 56 $ 51 $ (33) $ 71 $ 38Long-term debtIn U.S. offices $ (58) $ (6) $ (64) $ (432) $ 38 $ (394)In offices outside the U.S. (4) (6) (30) (36) (41) (36) (77)Total $ (64) $ (36) $ (100) $ (473) $ 2 $ (471)Total interest expense $ (37) $ (122) $ (159) $ (552) $ 54 $ (498)Net interest revenue $ 168 $ (274) $ (106) $ 354 $ (462) $ (108)(1) The taxable equivalent adjustment is based on the U.S. federal statutory tax rate of 35% and is included in this presentation.(2) Rate/volume variance is allocated based on the percentage relationship of changes in volume and changes in rate to the total net change.(3) Detailed average volume, interest revenue and interest expense exclude discontinued operations. See Note 2 to the Consolidated Financial Statements.(4) Changes in average rates reflect changes in prevailing local interest rates, including inflationary effects and monetary corrections in certain countries.(5) Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and interest expense on cash collateralpositions are reported in interest on Trading account assets and Trading account liabilities, respectively.76CITIGROUP – 2012 FIRST QUARTER 10-Q