01—Abstract
Summary
Summary of the 10-K filed February 28, 2022. Cited figures are marked; the original filing is the authoritative source.
Citigroup Inc.'s 2021 Form 10-K highlights a year of significant strategic transformation alongside a robust financial performance.
The company reported a substantial increase in net income to $22.0 billiona ($10.14 per share) compared to $11.0 billion ($4.72 per share) in 2020, primarily driven by a significant release of allowance for credit losses due to improved macroeconomic conditions and portfolio credit quality. Revenue saw a decline of 5% to $71.9 billion, largely due to normalization in market activity and the impact of lower deposit spreads and card loans, partially offset by strength in institutional client segments. The company continued to invest in its transformation, including infrastructure for its risk and control environment, and initiated strategic refreshes including planned exits from 13 consumer banking markets in Asia and EMEA, and the intended exit from consumer, small business, and middle-market banking operations in Mexico.
Citigroup significantly strengthened its capital position, with Common Equity Tier 1 capital ratio at 12.2% and a Supplementary Leverage ratio of 5.7%, comfortably exceeding regulatory minimums. Capital was returned to shareholders through $4.2 billionb in dividends and $7.6 billion in share repurchases. The company is actively managing its business portfolio, with a strategic focus on simplifying operations and improving resource allocation, aligning with its goal to strengthen risk and controls and enhance value for stakeholders.
02—Key points
Key Highlights
- Net income increased significantly to $22.0 billion ($10.14 per share) in 2021 from $11.0 billion ($4.72 per share) in 2020.
- Revenue decreased 5% to $71.9 billion, primarily due to normalization in market activity and lower deposit spreads, partially offset by strong performance in institutional client segments.
- Citigroup released $8.8 billion of its allowance for credit losses, reflecting improvements in the macroeconomic environment and credit quality.
- Operating expenses increased by 9% to $48.2 billion, driven by investments in transformation and business initiatives, partially offset by productivity savings.
- The Common Equity Tier 1 capital ratio stood at a strong 12.2% as of December 31, 2021.
- Citigroup returned $11.8 billion of capital to common shareholders in 2021 through dividends ($4.2 billion) and share repurchases ($7.6 billion).
- The company announced strategic exits from 13 consumer banking markets in Asia and EMEA and intends to exit consumer, small business, and middle-market banking operations in Mexico as part of its strategic refresh.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 28, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $71.88B$75.50B | −4.8% |
| Operating Income | $21.95B$11.07B | +98.3% |
| Interest Expense | $7.98B$13.34B | −40.2% |
| Net Income | $21.95B$11.05B | +98.7% |
| EPS (Basic) | $10.21$4.74 | +115.4% |
| EPS (Diluted) | $10.14$4.72 | +114.8% |
| Shares Outstanding (Basic) | 2.03B2.09B | −2.5% |
| Shares Outstanding (Diluted) | 2.05B2.10B | −2.4% |
05—Questions
Frequently Asked Questions
What was Citigroup's net income and earnings per share for 2021?
Citigroup reported a net income of $22.0 billion, or $10.14 per share, for 2021, a significant increase from $11.0 billion, or $4.72 per share, in 2020.
How did Citigroup's revenue perform in 2021?
Citigroup's total revenues decreased by 5% to $71.9 billion in 2021 compared to $75.5 billion in 2020. This was mainly due to a normalization in market activity and lower deposit spreads, partially offset by strength in its Institutional Clients Group.
What is the status of Citigroup's strategic exits from consumer banking businesses?
Citigroup announced strategic exits from consumer banking franchises in 13 markets across Asia and EMEA and intends to exit the consumer, small business, and middle-market banking operations of Citibanamex in Mexico. These exits align with the company's strategy to focus on global wealth centers, payments, and lending, and a targeted retail presence in the U.S.
How did Citigroup manage its capital in 2021?
Citigroup maintained a strong capital position, with a Common Equity Tier 1 capital ratio of 12.2% as of December 31, 2021. The company returned $11.8 billion of capital to common shareholders, comprising $4.2 billion in dividends and $7.6 billion in common share repurchases.
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