Summary
Citigroup Inc. (Citi) filed an 8-K on April 11, 2016, to announce a reclassification of certain historical financial data. This reclassification primarily pertains to consumer businesses in Argentina, Brazil, and Colombia, which Citi intends to exit. These previously reported under 'Latin America Global Consumer Banking (GCB)' will now be part of 'Citi Holdings'. Additionally, consumer businesses in Venezuela, while not being exited, will be reported under 'Institutional Client Group (ICG)' to better reflect their support for institutional activities. Citi's remaining indirect investment in Banco de Chile will also move to 'ICG'.
Key Highlights
- 1Reclassification of consumer businesses in Argentina, Brazil, and Colombia from GCB to Citi Holdings due to planned exits.
- 2Venezuela consumer businesses will be reported under ICG to align with support for institutional clients.
- 3Remaining indirect investment in Banco de Chile will also be reported under ICG.
- 4These reclassifications are reflected in a revised Historical Quarterly Financial Data Supplement for the period ending December 31, 2015.
- 5The company's consolidated results remain unchanged for all periods presented as a result of these reclassifications.
- 6This filing provides a revised historical data supplement to facilitate comparison with the upcoming Q1 2016 financial results.
- 7The 8-K filing is furnished, not filed, meaning it does not trigger Section 18 liabilities.
Frequently Asked Questions
Citigroup is reclassifying these businesses primarily because it intends to exit its consumer operations in Argentina, Brazil, and Colombia. The reclassification also aims to better align reporting for the Venezuelan consumer business with its primary function of supporting institutional client activities.
No, the filing explicitly states that Citigroup's consolidated results remain unchanged for all periods presented as a result of these reclassifications. The change is in how certain operations are categorized and reported.
These reclassifications will be reflected in Citigroup's financial results starting from the first quarter of 2016. The provided supplement is intended to help investors compare these future results with historical data.
The 'furnished' status means that this report, including the attached supplement, is being provided for informational purposes and is not deemed 'filed' under Section 18 of the Securities Exchange Act. This typically means the company is not subject to the same level of liability for inaccuracies as it would be for a 'filed' document.