10-KPeriod: FY2015

CITIGROUP INC Annual Report, Year Ended Dec 31, 2015

Filed February 26, 2016For Securities:CC-PNC-PR

Summary

Citigroup's 2015 Form 10-K filing highlights a robust year, with net income reaching $17.2 billion, the highest since before the financial crisis. The company demonstrated solid performance by growing revenues by 3%, investing in its core Citicorp segment, and reducing overall expenses, leading to an improved efficiency ratio. Key financial strengths include a 5% growth in both loan and deposit balances within Citicorp and a year-end Common Equity Tier 1 Capital ratio of 12.1% on a fully implemented basis, indicating a strong capital position and improved regulatory compliance. The company also made significant progress in winding down its non-core Citi Holdings segment, reducing its assets by 43% to $74 billion while maintaining profitability. Citigroup's strategic focus on efficient resource allocation and expense management, coupled with the continued wind-down of Citi Holdings, positions the company for a more focused and resilient future. Despite operating in a challenging market with volatility and macroeconomic uncertainties, Citigroup's results reflect successful execution of its strategic priorities, including a disciplined approach to expenses and a significant reduction in legal and repositioning costs. The report indicates a positive outlook for continued progress in 2016, building on the advancements made in 2015.

Financial Highlights

38 data points
Beta

Revenue

$76.35B

Net Income

$17.24B

22.6% Net Margin

EPS (Diluted)

$5.40

Total Assets

$1.73T

Cash & Equivalents

$133.10B

Free Cash Flow

$36.54B

Financial Statements
Beta
Revenue$76.35B
Operating Income$17.30B
Interest Expense$11.92B
Net Income$17.24B
EPS (Basic)$5.41
EPS (Diluted)$5.40
Shares Outstanding (Basic)3.00B
Shares Outstanding (Diluted)3.01B

Key Highlights

  • 1Net income for 2015 reached $17.2 billion, the highest since pre-financial crisis.
  • 2Revenue grew by 3%, with a 5% increase in loan and deposit growth in Citicorp.
  • 3The Common Equity Tier 1 Capital ratio stood at 12.1% (fully implemented), demonstrating strong capital adequacy.
  • 4Citi Holdings assets were significantly reduced by 43% to $74 billion, while maintaining profitability.
  • 5Total operating expenses decreased by 21% year-over-year, aided by lower legal and repositioning expenses.
  • 6Net credit losses decreased by 19% to $7.3 billion, reflecting improved credit quality.
  • 7Citigroup returned approximately $5.9 billion of capital to shareholders through repurchases and dividends.

Frequently Asked Questions

Citigroup reported a net income of $17.2 billion in 2015, which represents a significant increase compared to $7.3 billion in 2014 and $13.7 billion in 2013. This $17.2 billion net income is the highest since before the financial crisis.

Citigroup's capital position strengthened significantly. The Common Equity Tier 1 Capital ratio (fully implemented basis) improved to 12.1% at year-end 2015, up from 10.6% at year-end 2014. The Tier 1 Capital ratio also improved to 13.5% from 11.5%, and the Supplementary Leverage ratio increased to 7.1% from 5.9%.

Citigroup made significant progress in winding down Citi Holdings, reducing its assets by $55 billion, or 43%, from 2014 to $74 billion by the end of 2015. The company also had agreements in place to further reduce assets by approximately $7 billion in 2016 and maintained profitability within the Citi Holdings segment during 2015.

Citigroup successfully reduced its total operating expenses by 21% compared to the prior year, reaching $43.6 billion. This reduction was largely driven by significantly lower legal and related expenses ($1.5 billion in 2015 vs. $5.8 billion in 2014) and lower repositioning costs ($472 million in 2015 vs. $1.6 billion in 2014). Foreign currency translation also contributed to lower reported expenses.